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2015 City of Hopkins-MN Budget City of Hopkins, Minnesota Annual Budget January 1 - December 31, 2015 Inspire Educate Involve Communicate City of Hopkins 1010 First St S Hopkins, MN 55343 952-935-8474 CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2015 City Council Term Expires Mayor Eugene Maxwell .................................................................................. December 31, 2015 Councilmember Molly Cummings ................................................................ December 31, 2015 Councilmember Jason Gadd .......................................................................... December 31, 2015 Councilmember Kristi Halverson ................................................................. December 31, 2017 Councilmember Aaron Kuznia ...................................................................... December 31, 2017 Management Team Mike Mornson ......................................................................................................... City Manager Kersten Elverum ............................................................... Director of Planning & Development Jim Genellie .............................................................................. Director of Community Services Christine Harkess........................................................................................... Director of Finance Dave Johnson ................................................................................................. Recreation Director Mike Reynolds ............................................................................................................. Police Chief Dale Specken................................................................................................................... Fire Chief Steve Stadler ......................................................................................... Director of Public Works This document was developed and compiled by the Finance Department, City of Hopkins CITY OF HOPKINS TABLE OF CONTENTS Introduction/Background City Manager’s Budget Message .................................................................................. 4 Distinguished Budget Presentation Award ................................................................... 8 Organization Chart ....................................................................................................... 9 Community Profile ...................................................................................................... 10 Organization Structure ................................................................................................ 13 Organization Mission Statement, Vision & Goals ....................................................... 14 Financial Management and Policies ........................................................................... 16 Budget Calendar ......................................................................................................... 19 Budget Planning Process ........................................................................................... 21 Fund Structure ............................................................................................................ 22 Budget Overview Authorized and Approved Staffing Levels .................................................................. 26 2015 Summary Budget Information by Major and Non-Major Funds ......................... 28 2015 Budget Summary – All Funds ............................................................................ 29 2015 Revenue Summary – All Funds ......................................................................... 31 2015 Appropriation Summary – All Funds .................................................................. 35 Property Tax Information ............................................................................................ 38 Fund Balance ............................................................................................................. 42 Debt Overview ............................................................................................................ 46 Capital Improvements Overview ................................................................................. 50 General Fund Budget Projection ................................................................................ 56 Other Major Funds Budget Projections ...................................................................... 60 General Fund ................................................................................................................. 64 Special Revenue Funds ................................................................................................ 111 Internal Service Fund .................................................................................................... 141 Enterprise Funds ........................................................................................................... 143 General Debt Service Funds ......................................................................................... 155 Glossary ........................................................................................................................ 156 City of Hopkins 1010 First Street South Hopkins, MN 55343-7573 Phone: 952-935-8574 Fax: 952-935-1834 Web address: www.hopkinsmn.com January 2015 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 2015 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 2015 tax levy. The final result is an adopted 2015 budget totaling $30,140,242 of which $11,346,716 is the General Fund. This budget lives within the City’s financial resources, meets basic service needs, provides for the maintenance and replacement of the City’s infrastructure, and plans for the future, keeping Hopkins’ good financial condition intact. The Municipal Budget is intended to reflect the goals, objectives, and priorities established by the City Council with input from the residents and taxpayers of Hopkins, and fairly represent the revenues and expenditures necessary to provide the services and programs desired by the community. The city governing body involves its’ citizens and constituents through its mission and vision statement “Inspire • Educate • Involve • Communicate” by: conducting a citizen’s academy, providing a state of the city address, publishing a city annual report, and communicating with the community as often as possible regarding many city initiatives and proposed polices. The budget adoption is a significant way in which the City Council expresses their leadership. The City Council establishes budget goals, which are accurately reflected in this budget. 2015 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs. each of the City’s general fund Partnering with the Community to Enhance the Quality of Life Inspire Educate Involve Communicate 4 CITY OF HOPKINS HOPKINS IN 2014 In the year 2014, the nation’s economy was continuing to recover after several years of minimal growth. The governmental environment was to maintain staff and minimize budget increases. The city continued to provide all core services through 2014. 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 2014, the City’s tax base continued to grow due to several new development projects. Redevelopment of properties in Hopkins helped to increase our tax base. The City's total tax capacity values increased 8.3% due to commercial properties higher tax capacity. However, in 2014 the overall taxable market value declined by .27% primarily due to slow housing recovery. Despite the decrease in value the levy has increased an average of 2.05% per year over the last five years. The City’s general fund expenditures have increased an average of 2.2% a year over the last five years. This increase is directly related to salary and benefit increases for employees, insurance costs and oil based products. Diligent planning and management has helped in keeping operating expenditures down. The employee compensation has remained competitive in the market for both those with and those without labor contracts. The number of employees has remained stable at 105-110. ECONOMIC OUTLOOK Hopkins is a diverse community made up of a healthy mix of residential, commercial and industrial properties. Super Valu is the largest food wholesaler in the nation. They are a Fortune 500 company that continues to have a strong presence in Hopkins. Another Fortune 500 company with a branch in Hopkins is US Bank. In addition Cargill, the largest privately held company in terms of revenue, 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 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 Redevelopment of a small parcel in the downtown district into six luxury townhomes. Redevelopment of a former gas and convenience store site into a new 12,000 sf strip mall. Redevelopment of a vacant office and clinic site into 163 luxury apartments with retail space Redevelopment of a vacant downtown building into a craft brewery and tap room. 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. 2015 BUDGET 5 CITY OF HOPKINS LONG TERM OBJECTIVES The City Council and staff have established long term objectives for the community and the working environment Increase ratio of residential properties. Maintain the high quality of our livable community. Increase tax base to spread share of tax burden. BUDGET OBJECTIVES FOR 2015 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 have been on and off again since 2008. This uncertainly poses budget challenges as cities are uncertain if they will again be re- instated. For the 2015 budget year there were no levy limits which give cities more budget flexibility in meeting the needs of their citizens while maintaining essential city services. State Aids – The City of Hopkins no longer relies on significant state aids as a revenue source despite the legislature annually discussing the Local Government Aid (LGA) program and working to modify the program and how funds are allocated to cities. Hopkins lost their entire allotment of over $1.8 million many years ago and in 2015 will once again receive LGA of $300,000. Real Estate Values – Overall real estate values in this community were stable for 2014. Despite the market value stability this resulted in a increase in the City’s tax capacity of 8.34% due to commercial property which has a higher tax capacity than residential properties. Overall, budgeted expenditures will increase by 3.66% in 2015 due in large part to salaries and benefits. We projected a 2.0% change for 2016 and modest if any increases for future years. Future programs and services provided by the City of Hopkins may change in relation to available revenue sources. The City Council and staff along with their financial advisor will be updating the City’s long-range financial management plan that assists in current and future budgeting. The plan was adopted in 2014 and was implemented for the 2015 budget. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and sets forth a plan to stabilize all funds. 2015 BUDGET 6 CITY OF HOPKINS Fund Balances for governmental fund types will continue to be strong for the next 3 to 4 years, absent any significant changes in the policy of avoiding the use of fund balance reserves for current expenditures. GAUGING THE CITY The City uses the following performance measures: Tax levy history in relation to the consumer price index. Sample properties – cost per month Comparisons of comparable communities Goal achievement 2015 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, while keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount while at the same time allowing the City enough funds to continue with the level and quality of service it currently has. This has been particularly challenging the last few years as property values declined. The city’s tax capacity rate held fairly steady from 2005 to 2010 at around 48%. When property values started falling in 2010 they affected the tax rate for 2011 through 2012 increasing to 62.417% in 2013. The 2015 city tax rate is 62.914, a .494% increase from 2014. The adopted General Fund budget has a 3.66% expenditure increase for a total General Fund Budget of $11,346,716. The total tax levy increase for 2015 is 6.04%. The levy includes funds designated for general fund operations, capital improvements, the Pavilion, Art Center and debt service payments. The monthly city tax cost for a median valued home of $225,000 is about $118 or approximately $1,415 for the year not including credits for state programs. The city’s goals and objectives were once again reviewed and updated by city staff, commissions, citizens and the City Council. They are integral part in meeting the needs of the citizens. The 2015 goals and strategic plan are included in the budget document on pages 14-15. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 2015 BUDGET 7 CITY OF HOPKINS The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Hopkins, Minnesota for its annual budget for the fiscal year beginning January 1, 2014. 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. 2015 BUDGET 8 CITY OF HOPKINS 2015 BUDGET 9 CITY OF HOPKINS COMMUNITY PROFILE The first settlers of Hopkins arrived in 1852; however, the roots of the town begin in 1887 with the building of the Minneapolis Threshing Machine Company, later called Minneapolis Moline. Minneapolis Moline once employed most of the Hopkins residents. The West Minneapolis Land Company was also founded in 1887 and was formed to build housing for the Minneapolis Moline factory workers. In 1893, the Hennepin County Board of Commissioners received a petition signed by 41 residents, asking that the village be formed. Following an election, the community was then incorporated as the village of West Minneapolis. The original village was comprised of three square miles, and it has been enlarged by annexation to its present size of about four square miles. The population at the time of its incorporation was 1,105; today, there are 17,481 people living in Hopkins. In 1928, the name of the village was changed to Hopkins - for Harley H. Hopkins who was among its first homesteaders and was the community's first postmaster. The first mayor was Harley Hopkins' son, Chester L. Hopkins. On January 1, 1948, the village became a city upon adoption of a City Charter with a Council/Manager form of government. The City Council consists of four council members and the mayor. Council members serve four-year terms and are elected at large. The mayor is elected at large for a two-year term. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City’s manager and attorney Hopkins has always had a core business district, and in the center of that early business district was Hopkins City Hall at 8th Ave N and Mainstreet. Completed in 1912, it housed the city's police and jail in the rear portions, and city offices, library and meeting room upstairs. The fire station was on the main level, and the firefighters used horse drawn rigs. The building was remodeled in 1940 to accommodate more fire trucks. That fire station was torn down in 1965 after a new City Hall, Police Station and Fire Station were built at 1010 1st St S. In 2004, a new Fire Station was built on 17th Ave. The Police Department was expanded and remodeled in 2005. In the summer of 1982, the city and its Public Works Department accomplished the challenge of building a city garage on a small area, using as many of the existing structures as possible, doing it within a $475,000 budget, and doing it without disrupting city services. The Public Works facility was expanded and remodeled in 2004. Adjacent to the Public Works facilities is the Hopkins Pavilion, which was built with money from a 1989 park bond referendum. The facility opened in December 1991. It is now one of the premier facilities of its kind in the Twin Cities area, and is used for soccer, lacrosse, in-line roller hockey, skating and ice hockey. The Hopkins Activity Center, a multipurpose community facility, opened in January 1981 at the site of the former South Junior High School. A variety of programs for people of all ages are offered at the Activity Center. It was renovated in 1990, and the facility includes a gymnasium, meeting rooms and kitchen. The Hopkins Historical Society, which was started more than 30 years ago, also is located in the Activity Center. The Hopkins Center for the Arts, 1111 Mainstreet, opened in November 1997. The Arts Center stands as a focal point for arts, culture and entertainment in the Hopkins community, the Twin Cities metro area and the region. It is a community-gathering place where young and old can enjoy high quality, multi- disciplinary cultural arts programs and community activities. The Arts Center includes a theater, a visual arts gallery, multipurpose spaces for rehearsals, community activities and small performances, a visual arts classroom, a dance studio, and kitchen facilities for serving catered food. th It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival, now in its 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. 2015 BUDGET 10 CITY OF HOPKINS Minnesota Hopkins is a suburban city in Hennepin County, Minnesota located just 13 minutes west of the Twin Cities of Minneapolis and St. Paul. The City is four square miles in size surrounded by larger suburban communities. Hopkins is about 98% developed with little remaining vacant land. U.S. Route 169 and Minnesota Highway 7 are two of the main arterial routes in the City. Hopkins is a dynamic community of over 18,000 residents. Founded rich in tradition and growth, Hopkins offers the advantages and conveniences of a large City but yet the security of a small town. The residents and the business community have an enormous sense of pride and support for their City. Travel any street and you will see and feel the reflections of pride and vitality. Hopkins has enriched its spirit of community by remaining a place where people are treated with respect; where the community participates in building culture, character and common bonds; where business growth is supported while a vibrant City Center is maintained; where people feel safe, support outstanding schools and celebrate cultural heritages; and where people enjoy quality parks, housing and public services. Through education, inspiration, involvement and communication, the City Council, City Staff, members of the Boards and Commissions, the business district and the neighborhood associations are committed to enhancing the quality of life in Hopkins. Population: 19203,055 19303,834 19404,100 19507,595 196011,380 1970 (census)13,395 1980 (census)15,336 1990 (census)16,534 2000 (census)17,145 2010 (census)17,591 201117,701 201217,939 Summertime in Hopkins 201318,413 at the Clock Tower Plaza 2015 BUDGET 11 CITY OF HOPKINS CITY STATISTICS: Founded1852School Enrollment8,555 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 Family2,755Elections: Multiple Family4,873 Registered Voters - last general election10,912 Duplexes514 Number of votes cast last general election9,130 Townhouses862 Percentage of registered voters voting84% Population by AgeCity Bond Rating 0 to 194,203 Stand & Poor'sAA+ 20 to 6411,462 Over 651,960 Miles of Streets and Alleys: Income by Household Trunk Highways3.57 Less than $25,0001893 County5.32 $25,000 - $50,0002429 City Streets47.5 $50,000 - $75,0001427 Alleys9.52 $75,000 - $100,000946 $100,000 - $150,000984Miles of Sewers: $150,000 - $200,000338 Storm Sewers21.4 $200,000 or more197 Sanitary Sewers45.46 Median Household Income$47,100Miles of Watermains52.6 Per Capita Personal Income$29,800 Civil Defense Warning Sirens3 Unemployment Rate4.3% Fire Protection: Population Composition Number of Stations1 White72.60% Number of FT Employees1 African American17.60% Volunteer Firefighters36 Asian8.80% Hispanic or Latino7.70%Police Protection: Two or More Races5.30% Number of Stations1 Native American2.40% Number of Employees41 Other Races4.60% Parks City Parks16 Playgrounds11 Total Property Values$1.602 billion Skating Rinks7 2015 BUDGET 12 CITY OF HOPKINS ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council-manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four-year term and the mayor serves a two- year term. The city manager of the City is the chief administrative officer of the City. The city manager and the city attorney are selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City’s affairs and therefore, supervises all departments and divisions of the City. The city attorney provides legal and prosecution services for the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer citizens and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. There are also several internal committees comprised of department heads and employees to assist in the management of City operations. These include the Labor Management committee, Employee Management committee, Insurance committee, Safety committee, Wellness Committee and Police Review committee. MISSION, VISION AND GOALS Long-range goals for the City are: Continually enhance partnerships with citizens. o Inspire citizen leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is: o Responsive to the needs of the community. Innovative. Accessible. Short-term goals are reviewed annually by City Council and staff. The discussion begins with the global environment and ends with prioritizing goals for the near future. Below are the mission, vision and short- term goals for the City along with the strategies and action steps needed to implement them. The budget is developed using the three main goals along with the strategies as guidance. Departments then use the action steps in setting individual departmental goals and budgets so that resources are available to achieve the action steps identified. 2015 BUDGET 13 CITY OF HOPKINS 2015 BUDGET 14 CITY OF HOPKINS 2015 BUDGET 15 CITY OF HOPKINS FINANCIAL MANAGEMENT AND POLICIES The City of Hopkins Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices, policies and year- end reporting. BASIS OF ACCOUNTING The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for City funds. The exception is the proprietary funds, which are on full accrual. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City’s financial statements as included in the City’s Comprehensive Annual Financial Report at the fund statement level. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The City implemented Governmental Accounting Standards Board (GASB) Statement No. 34 for the year ending December 31, 2003. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City operates on a calendar fiscal year and reports its year-end financial position in a Comprehensive Annual Financial Report (CAFR), prepared by the City’s Finance staff. Copies of the 2014 CAFR will be available to the public upon completion in May 2014 and a summary of the results will be published in the official newspaper. The 2014 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, 2013. 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. 2015 BUDGET 16 CITY OF HOPKINS EQUIPMENT REPLACEMENT PLAN (ERP) POLICY The City annually develops a 5-year plan for equipment replacement and updates it annually. The five- year budget equipment replacement plan will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete ERP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each equipment proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed equipment purchase. New pieces of equipment not previously in the equipment replacement plan must first be financed through the departmental budget and will be placed in the equipment replacement plan the year following the purchase. The City will make all equipment purchases in accordance with the adopted equipment replacement plan or as amended by the City Council. Equipment purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its equipment assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. BUDGETARY AND FINANCIAL CONTROL POLICIES The council shall have full authority over the financial affairs of the City. City manager shall control and direct the administration of the City's affairs. The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. The manager will prepare and submit to the council at the end of the fiscal year a complete report on the finances and administrative activities of the City for the preceding year; and keep the council advised of the financial condition and future needs of the City. The annual budget shall provide a complete financial plan for the budget year by fund. The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The city clerk shall be the chief purchasing agent of the City. The City will maintain an investment policy that invests available funds to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines.Any money in any fund belonging to the City, or any branch thereof, may be invested by the city manager according to policies adopted by the City Council. The finance director shall be the chief accounting officer of the City and shall submit to the council a statement each month containing information relative to the finances of the City as the council may require. Each year the finance director shall submit a report to the council, no later than June 30, covering the entire financial operations of the City for the past year. This report shall follow the style and form, as far as practicable, prescribed for annual City financial reports and copies will be made available to interested parties. BUDGET CONTROLS Budgets are complete financial plans for the future by fund, showing all proposed expenditures and estimates of all anticipated revenues. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. The budget is a public record open to public inspection. The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by resolution. BALANCED BUDGET – It has been City policy to annually approve a balanced General Fund budget. A balanced budget is a budget in which expenditures are equal to income. Other City funds may or may not have a balanced budget depending on when funding is received for specific expenditure needs. For example a grant may be budgeted for expenditures that may overlap years. Thus all revenues would be in one year and the expenditures would be in multiple years. 2015 BUDGET 17 CITY OF HOPKINS BUDGET BASIS – Governmental budgets are prepared on the modified accrual basis and enterprise budgeted on an accrual basis. Budgets are estimates and may be amended under the following guidelines. PREPARATION OF THE ANNUAL BUDGET – The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET – The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET – Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET – Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re-appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc… For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. 2015 BUDGET 18 CITY OF HOPKINS The City follows the procedures below in establishing the budget. 1. The city manager and finance director submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. a. The operating budget includes proposed expenditures and the estimated revenues for the general fund, specified special revenue funds requested by City Council, enterprise funds, internal service funds and debt service funds. b. Capital project funds for the City are not budgeted annually but are included in the Capital Improvement Plan approved by the City Council. Capital projects are approved by the City Council on a per project basis. 2. Public hearings are conducted to obtain taxpayer comments. 3. The general fund budget is enacted through passage of a resolution. BUDGET CALENDAR April-MayMeet with Council to set parameters and goals for 2015 budget process June (1st week)Distribute budget worksheets to departments June (3rd week)Departmental budgets to be completed and returned to finance June (4th week)Finance reviews and compiles budget summary July (1st week)City Manager & Finance to meet with departments to review budgets July - AugustCouncil work sessions to review budgets September 2City Council adopts preliminary levy and budget September 3Proposed 2015 budget and levy certified to Hennepin September/OctoberSpecial Revenue & Enterprise budgets presented to Council for review and approval December 2Budget public hearing and final budget approval and tax levy certification December 28Final 2015 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. 2015 BUDGET 19 CITY OF HOPKINS DEBT The City will confine long-term borrowing to capital improvements, equipment or projects that have a life of more than 5 years and cannot be financed from current revenues. The City may issue debt for its Permanent Revolving fund, which pays for any improvement in which part of the cost of the improvement is to be assessed against the benefiting properties. The City may also issue revenue bonds that are paid back directly from revenue sources other than debt levies. The City may submit to voters the proposition of issuing debt for any public purpose not prohibited by law, and issue the debt upon a favorable majority vote. Whenever possible, the City will use revenue (including G.O. backed revenue) or other self- supporting type bonds instead of general obligation bonds. The City will maintain frequent and regular communication with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The City will comply with Securities Exchange Commission (SEC) reporting. The City will keep the total maturity length of general obligation bonds below 25 years. In all cases the maturity shall be shorter than the life of the related assets. Net general obligation debt (as defined above) will not exceed 3% of the estimated full market value of taxable property in the Cit as required by Minnesota Statutes Section 475.53. The City may issue emergency bonds to pay for extraordinary expenditures or to cover a shortfall in revenues for budgeted expenditures. Emergency bonds must mature within ten years of issuance. One tenth of the amount is to be levied the first year following issuance and one tenth every year there after for ten years. FUND BALANCE The City believes that sound financial management principles require that sufficient funds be retained by the City to provide a stable financial base at all times. To retain this stable financial base, the City needs to maintain a General Fund Balance sufficient to fund all cash flows of the City, to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature, and to provide funds for all existing encumbrances. The following individual items shall constitute the City General Fund Balance: Restricted Fund Balance – The restricted fund balance category includes the portion of o 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 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 2015 BUDGET 20 CITY OF HOPKINS previously considered. In addition, the resources classified as unassigned can be used to cover expenditures for revenues not yet received. The Council recognizes that any such funds should be appropriated for non-recurring expenditures as they represent prior year surpluses that may or may not materialize in subsequent fiscal years POLICY - At the end of each fiscal year, the City will strive to maintain Spendable – Unassigned portions of the fund balance for Cash Flow equivalent to a minimum of five (5) months or 42% of the prior fiscal year General Fund operating expenditures. In addition to cash flow needs this accommodates emergency contingency concerns. MONITORING AND REPORTING - The City Manager and Finance Director shall annually prepare the status of fund balances in relation to this policy and present to the City Council in conjunction with the development of the annual budget. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1.) committed 2.) assigned and 3.) unassigned. A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. BUDGET PLANNING PROCESS The City has developed a number of elements that when been brought together help to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Department Directors then use these goals in developing departmental goals and setting departmental budgets. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. For programs whose goal is to be supported totally by revenues it allows departmental managers to review the fee structure on an annual basis to ensure that goal is met. It also allows the public to determine what portion of a specific department is supported by taxes. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Monitoring tax capacity along with budget needs provides advance notice to management when taxes may rise faster than advisable and allows staff to take appropriate action in revising budget goals and projections. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting in keeping all funds in a positive cash position. Financial Management Plan – In 2014 the City adopted a long-range Financial Management Plan for the years 2015-2024 that addresses financing challenges for several funds, sets forth financing for all items identified in the Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP) (described below), and provides for adequate funding for operational needs in the general, special revenue funds and enterprise funds. Tax base growth is built into the plan so the taxes are indexed each year based on that growth. This plan when followed should make the annual budget much easier to develop. 2015 BUDGET 21 CITY OF HOPKINS The Financial Management Plan will be updated each year prior to the budget process and used as a guide in preparing the annual budget. This document is key in managing increases in the General Fund, restoring the Art Center Fund to sound financial footing and providing adequate resources for the Pavilion Ice Arena that will need significant capital improvements in 2020. The Financial Management Plan was developed by staff with assistance from the City’s Financial Advisor who will assist staff in annual updates to the plan to ensure the goals of the City continue to be met. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. The council when setting the tax levy is sensitive to its impact on property owners and this benchmark provides information on how the recommended levy will impact city taxpayers. If the council feels the proposed levy will negatively impact property owners options for reducing the levy are explored. These may include revenues alternatives or expenditure decreases or a combination of both. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs and demonstrates which city programs are most each of the City’s general fund dependant on taxes. It also provides information to the public on what benefits they receive for their tax dollars. The Capital Improvement Plan (CIP) is a five-year schedule or plan Capital Improvement Plan – for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. Equipment Replacement Plan – The Equipment Replacement Plan (ERP) is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $929,300. 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. 2015 BUDGET 22 CITY OF HOPKINS Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains fifteen Special Revenue Funds. There are 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. 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. 2015 BUDGET 23 CITY OF HOPKINS Enterprise Funds Enterprise funds account for our business-type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has five Enterprise funds. Water Utility Fund – water utility fees based on water usage, which covers the expense of distributing water and maintaining the water system infrastructure. Sewer Utility Fund – sewer utility fees based on water usage, which covers the expense of disposing of sewer products and maintaining the sewer system infrastructure. Refuse Utility Fund – refuse fee based on size of refuse container, which covers the expense of disposing of refuse products. Storm Sewer Utility Fund – storm sewer utility fee based on non-permeable surface of property for commercial or a fixed rate for residential properties, which covers the expense of maintaining the storm sewer infrastructure throughout the city. Pavilion/Ice Arena Fund – rental fees for ice or space, which covers the operating costs of running the facility. Internal Service Funds Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost reimbursement basis. The City has three Internal Service Funds and no budgets are prepared for these funds. Equipment Replacement – revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. Employee Benefits – to account for compensated absences of non-enterprise employees Insurance Risk – accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. Major Funds For 2015 the City identifies the following funds as major funds which are described above. All major funds are budgeted. General Fund Economic Development Special Revenue Fund Arts Center Special Revenue Fund Permanent Improvement Capital Projects Fund G.O. Housing Improvement Refunding Bonds of 2009B Debt Service Fund Water Utility Enterprise Fund Sewer Utility Enterprise Fund Storm Sewer Utility Enterprise Fund Public art in the downtown area 2015 BUDGET 24 CITY OF HOPKINS City Personnel by Function Administration of Fund GeneralPublicCommunityCommunity Operating FundGovernmentFinancePoliceFireWorksDevelopmentServicesRecreation General Fund AdministrationXXX FinanceX Community ServicesX Building MaintenanceXXXX InspectionsX PoliceX FireX Public WorksX RecreationX Activity CenterX Planning & ZoningX Community DevelopmentX Special Revenue Funds Economic DevelopmentX ParkingXX CommunicationX Depot Coffee HouseX Art CenterX Enterprise Funds WaterX SewerX RefuseX Storm SewerX PavilionX Housing & RedevelopmentX Employees volunteering at the annual Mayor Gene Maxwell at the annual State of Thanksgiving luncheon for seniors at the . the City address City’s Activity Center. 2015 BUDGET 25 CITY OF HOPKINS Authorized and Actual Staffing Levels Full-Time and Regular Part-Time Positions 1 FTE = an employee who works 40 hours a week 20122013201420152015 Authorized Authorized Authorized Authorized Actual & Actual& Actual Administrative Services4.955.005.005.005.00 Finance4.604.604.604.604.60 Municipal Building1.451.451.451.451.45 Community Services9.809.809.709.689.68 Police39.5036.4534.5036.5035.50 Fire1.201.251.251.251.25 Public Works17.6917.6917.0918.0917.09 Skate Park0.050.050.050.050.05 Activity Center3.203.203.203.203.20 Planning & Community 1.351.351.351.351.35 Community Development0.850.850.850.850.85 General Fund Total84.6481.6979.0482.0280.02 Economic Development1.601.151.601.601.60 Housing Rehabilitation0.000.000.000.000.00 Parking0.720.720.720.720.72 Communications 0.250.250.250.250.25 Depot Coffee House1.502.502.502.502.00 Art Center4.303.803.804.304.30 Special Revenue Fund Total8.378.428.879.378.87 Water3.133.133.133.433.43 Sanitary Sewer3.463.463.463.763.76 Refuse3.893.893.893.893.89 Storm Sewer0.630.630.630.630.63 Pavilion/Ice Arena2.402.402.402.902.90 Housing & Redevelopment2.202.202.202.202.20 Total Proprietary Funds15.7115.7115.7116.8116.81 Total All Funds108.72105.82103.62108.20105.70 In 2015 the 2.5 position difference between authorized and actual staffing includes positions in the police and public works departments (2 total) that are authorized but remain unfilled. While the positions are authorized, the positions will remain open into 2015 as a budget saving measure. The Depot Coffee House eliminated a part time position after the 2015 budget was approved and once year end performance measures were in. The increase in actual staffing from 2014 to 2015 of 2.08 is due to adding one police officer to the staff and adding a part-time position to the Arts Center and Pavilion. Other minor changes included shifting responsibilities of various personnel between departments which resulted in staffing count changes in those departments. 2015 BUDGET 26 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Major Funds pecaevenueCapital ProjectsDebt ServiceEnterprise SilR Tax Incr Taxable District - Taxable Tax Entertain-Permanent Houing Increment Storm General Economic ment Arts Municipal Improvement Bonds of Rfdg Bonds Water Sewer Sewer Function FundDevDistrictCenterState AidRevolving2009Bof 2005BUtilityUtilityUtilityPavilion General GovernmentXXXXXXXXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingXX Culture and RecreationXXX Capital OutlayXXXXXX Debt ServiceXXXXX WaterX SewerX Storm SewerX Non-Major Funds SpecialCapitalDebt FunctionRevenueProjectsServiceEnterprise General GovernmentXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingX Culture and RecreationX Capital OutlayXX Debt ServiceX RefuseX Hopkins Citizen’s Academy participants engage in Police, Planning and Economic Development, and fire exercises. The Citizens Academy, a five week program held annually in March allows citizens to get a better understanding of how their City government works. The Academy covers the topics of, Our Government, Police, Fire, Public Works and Planning & Economic Development. The program has been well received by the community with over 25 participants each year. 2015 BUDGET 27 CITY OF HOPKINS Summary Budget Information – Major Funds and Non-Major Funds by Fund Type 2013201420142015Budget ActualActualBudgetBudgetDifference%age REVENUES General Fund$ 11,355,28511,111,620$ 10,946,129$ 11,346,716$ 400,587$3.66% Special Revenue Funds Economic Development Fund$461,099$650,707$ 287,480$288,072$ 0.21%592 Arts Center$772,800$679,223$ 777,376$787,121$ 1.25%9,745 Non-major Special Revenue Funds2,803,958$ $ 3,554,039$ 2,329,428$ 3,462,894$ 48.66%1,133,466 Capital Project Funds Permanent Improvement Fund2,$229,903$2,150,265$ 2,355,732$1,641,537$ -30.32%(714,195) Non-major Capital Project Funds$ 3,016,261$ 1,788,803$ 599,072$ 1,997,696$ 233.47%1,398,624 Debt Funds Taxable Housing Bonds of 2009B409,863$$140,745$ 397,516$401,757$ 1.07%4,241 Non-major Debt Service Funds$ 3,992,557$ 1,621,05316,707,218$ $ 2,675,438$ 65.04%1,054,385 Enterprise Funds Water Utility Enterprise Fund $1,508,719$1,513,774$ 1,605,484$1,675,400$ 4.35%69,916 Sewer Utility Enterprise Fund $2,003,891$2,117,430$ 2,104,150$2,208,700$104,5504.97% Storm Sewer Utility Enterprise Fund $804,400$811,842$ 803,000$ 803,000$ 0.00%- Non-major Enterprise Funds$ 1,346,628$ 1,344,023$ 1,319,800$ 1,405,400$ 6.49%85,600 EXPENDITURES General Fund$ 11,063,52810,848,267$ 10,946,129$ 11,346,716$ 400,587$3.66% Special Revenue Funds Economic Development Fund$295,137$362,524$ 280,488$240,828$ -14.14%(39,660) Arts Center$750,511$755,475$ 744,428$999,277$ 34.23%254,849 Non-major Special Revenue Funds2,791,514$ $ 2,883,124$ 2,244,208$ 2,394,522$ 150,3146.70% Capital Project Funds Permanent Improvement Fund2,$278,514$2,271,180$ 2,548,351$2,630,973$ 3.24%82,622 Non-major Capital Project Funds$ 4,497,429$ 1,916,876$ 2,293,300$ 2,992,500$ 30.49%699,200 Debt Funds Taxable Housing Bonds of 2009B325,331$$329,613$ 330,163$328,939$ -0.37%(1,224) Non-major Debt Service Funds$ 4,318,150$ 2,339,83210,738,934$ $ 9,046,900$ 286.65%6,707,068 Enterprise Funds Water Utility Enterprise Fund $1,360,301$1,473,094$ 1,615,651$1,569,265$ -2.87%(46,386) Sewer Utility Enterprise Fund $1,978,651$2,079,356$ 2,313,265$2,382,064$ 2.97%68,799 Storm Sewer Utility Enterprise Fund $557,838$880,210$ 479,638$490,738$ 2.31%11,100 Non-major Enterprise Funds$ 1,265,559$ 1,289,931$ 1,310,668$ 1,340,993$ 2.31%30,325 Major Funds are in bold type 2015 BUDGET 28 CITY OF HOPKINS Summary of Budgeted Funds GENERAL FUND 2013201420142015Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes8,785,782$ 8,953,481$ 8,952,774$ 9,307,729$ 354,955 3.96% Intergovernmental747,832 956,514 813,410 843,112 2 9,7023.65% Licenses, Permits & Fines878,634 780,586 564,395 569,975 5 ,5800.99% Charges for Services354,743 295,066 201,250 209,300 8 ,0504.00% Miscellaneous51,280 68,849 124,300 126,600 2 ,3001.85% Franchise Fees293,349 300,789 290,000 290,000 - $ 11,355,28511,111,620$ 10,946,129$ 11,346,716$ 400,587 3.66% APPROPRIATIONS Council69,112$ 71,519$ 69,872$ 70,417 $ 5 450.78% Administrative Services494,038 517,507 500,589 527,051 2 6,4625.29% Finance246,433 258,994 243,119 256,081 1 2,9625.33% Legal142,854 171,685 143,000 145,000 2 ,0001.40% Municipal Building 283,911 304,697 317,414 324,246 6 ,8322.15% Community Services970,926 1,013,372 991,362 1,030,737 39,375 3.97% Police4,397,727 4,396,663 4,483,494 4,511,890 28,396 0.63% Fire1,119,100 1,084,506 956,165 985,987 2 9,8223.12% Public Works2,293,610 2,422,216 2,384,144 2,503,936 119,792 5.02% Recreation569,804 585,914 586,329 589,560 3 ,2310.55% Planning 126,704 123,993 132,191 135,162 2,9712.25% Community Development89,768 87,124 88,250 91,4490% 3 ,199 Unallocated 44,280 25,338 50,200 175,200 1 25,000249.00% $ 11,063,52810,848,267$ 10,946,129$ 11,346,716$ 400,587 3.66% SPECIAL REVENUE FUNDS 2013201420142015Budget ActualActualBudgetBudgetDifference% age REVENUES Chemical Asses. Team71,752$ 63,949$ 45,000$ 45,000 $ $ - - Economic Development 461,099 650,707 287,480 288,072 5 920.2% Real Estate Sales 7,803 5,132 4,200 (4,200)- -100.0% Parking 92,862 106,934 96,000 96,500 5 000.5% Communication 254,014 265,949 236,500 250,0005.7% 1 3,500 Depot Coffee House 340,229 366,662 354,650 343,000 (11,650)-3.3% Art Center 772,800 679,223 777,376 787,121 9 ,7451.3% Tax Incr Financing (7 funds)2,037,298 2,745,413 1,593,078 2,728,39471.3% 1 ,135,316 $ 4,037,857$ 4,883,969$ 3,394,284$ 4,538,087$ 33.7%1,143,803 APPROPRIATIONS Chemical Assess. Team$ 71,752$ 75,313$ 45,000$ 45,000 $ - - Economic Development 295,137 362,524 280,488 240,828 -14.1%(39,660) Real Estate Sales - - 124,500- 124,500- Parking 139,992 106,655 95,869 139,404 4 3,53545.4% Communication 214,327 192,918 208,954 244,264 3 5,31016.9% Depot Coffee House 356,776 373,566 354,456 333,359 (21,097)-6.0% Art Center 750,511 755,475 744,428 999,277 254,84934.2% Tax Incr Financing (7 funds)2,008,667 2,134,672 1,539,929 1,507,995 (31,934)-2.1% $ 3,837,162$ 4,001,123$ 3,269,124$ 3,634,62711.2% $ 3 65,503 2015 BUDGET 29 CITY OF HOPKINS PROPRIETARY FUNDS 2013201420142015Budget ActualActualBudgetBudgetDifference% age REVENUES Water1,508,719$ 1,513,774$ 1,605,484$ 1,675,4004.4% $ $ 6 9,916 Sanitary Sewer 2,003,891 2,117,430 2,104,150 2,208,7005.0% $ 1 04,550 Refuse 940,948 955,602 947,200 949,800 $ 2 ,6000.3% Storm Sewer 804,400 811,842 803,000 803,000 $ - Pavilion/Ice Arena 405,680 388,421 372,600 455,600 8 3,00022.3% $ 5,663,638$ 5,787,069$ 5,832,434$ 6,092,5004.5% $ 2 60,066 APPROPRIATIONS Water$ 1,360,301$ 1,473,094$ 1,615,651$ 1,569,265$ (46,386)-2.9% Sanitary Sewer 1,978,651 2,079,356 2,313,265 2,382,064 68,7993.0% Refuse 840,003 838,057 872,206 903,3763.6% 3 1,170 Storm Sewer 557,838 880,210 479,638 490,7382.3% 1 1,100 Pavilion/Ice Arena 425,556 451,874 438,462 437,617 -0.2%(845) $ 5,162,349$ 5,722,591$ 5,719,222$ 5,783,0601.1% $ 6 3,838 DEBT SERVICE FUNDS (all funds) 2013201420142015Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes411,970$ 625,887$ 465,258$ 1,514,844$ 1,049,586$ 225.6% Special Fees1,280,681 808,794 864,840 906,5094.8% 4 1,669 Miscellaneous 41,648 206,277 3,500 5,550 2 ,05058.6% Proceeds from Bond Sale1,920,000 8,240,000 - - - 0% Operating Transfer In 808,120 6,967,005 682,971 650,291 (32,680)-4.8% $ 4,462,419$ 2,016,56916,847,963$ $ 3,077,194$ 52.6%1,060,625 APPROPRIATIONS Bond Principal$ 1,560,000$ 1,970,000$ 1,970,000$ 8,570,000$ 335.0%6,600,000 Bond Interest 655,973 683,725 683,724 617,988 (65,736)-9.6% Miscellaneous other charges37,909 145,357 16,271 17,851 1 ,5809.7% Transfer out 2,389,599 8,269,466 170,000- 170,0000% $ 4,643,481$ 2,669,99511,068,548$ $ 9,375,839$ 251.2%6,705,844 Total Revenues25,275,53438,874,28622,189,41625,054,4972,865,081 12.9% Total Appropriations24,491,25931,855,79022,604,47030,140,2427,535,772 33.3% Use of Equity or Fund Balance (784,275) (7,018,496) 415,054 5,085,745 4 ,670,6911125.3% 2015 BUDGET 30 CITY OF HOPKINS APPROVED BUDGET SUMMARY – ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. Property Taxes: One purpose of the budget is to communicate the financial plans for the City and its allocation of resources. The budgeted revenues for all funds total $25,054,497. The largest source of revenue by category is property taxes of $13,807,759 comprising 55% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits have been on again and off again since 2004. They were back on in 2014 but are off again for 2015. 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 2015 budgeted taxes increased in total by 2.4% primarily for as a result of new G.O. debt and levies for the Arts Center and Pavilion. The General Fund had a small increase in the levy due to increases in expenditures that were not offset by other revenue sources. Intergovernmental Revenues: Total $1,051,112 or 4.2% 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. In 2014 the City once again received local government aid from the State. This revenue sharing program has undergone many changes over the years with Hopkins last receiving funds under this program in 2002. In 2015 we are programed to receive $300,000 that will go to the General Fund and is utilized to reduce the general fund tax levy. In 2014 the City received several grants that were not part of the budget and helped fund specific programs. Those programs are not expected to continue in 2015. The City’s policy is to only budget for grants that have been approved before the budget is adopted as there is no guarantee of the award. Utility Fees: For water, sewer, refuse and storm sewer account for $5,444,600 of the City’s revenue or 21.76%. In 2007 a utility master plan was completed then revised in 2009, 2011 and 2013 for the water, sewer and storm sewer funds looking at anticipated revenues, expenditures and planned capital 2015 BUDGET 31 CITY OF HOPKINS improvements. The rate structure for each fund was then adjusted to meet those needs. Beginning in 2008 and going forward rates are adjusted as set forth in the utility master plan. In doing so revenues should be adequate to meet the future need of those systems. In 2008 an analysis of the Refuse fund was also done and rates were adjusted to ensure we continue to meet operational and capital needs. In 2014 rates for water, sewer, and recycling were increased. Revenue projections are based on the Utility Master Plan as developed by the City Engineer. The increase in revenues is derived from a combination of increased consumption and increased fees. The 2007 Utility Master Plan is reviewed and revised every two years. In 2015 rates were increased 4% for the water and sewer funds. Rates were also adjusted for recycling rates. Due to the growth of housing units an increase in water consumption is expected for 2015. Charges for Services: Other than utilities are $1,433,301 or 7.09% 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 2013 was due 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. While there are several other development projects on the horizon the City budgets conservatively on plan review fee income due to the uncertainty of the development market which can change depending on developers funding for their proposed projects. Special Assessments: and Special Assessment Fees for housing projects are $974,340 or 3.89% 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 2013 and 2014 the City received a large number of pre-payments on 15-year special assessments scheduled to go on the taxes for 2014 and 2015 As a result of the pre-payments revenues in future years will be reduced. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. 2015 BUDGET 32 CITY OF HOPKINS Permits, Licenses and Fines: are $591,975 or 2.37% of revenues. Permit revenues are dependent on the economy and on future development of the City. In 2013 due to several large commercial redevelopment projects the City had a very strong year in building permit income. While there are other projects in the works the City chooses not to rely on that income until it becomes reality, therefore building permit income continues to be budgeted conservatively based on an average of the past 10 years. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects. License revenue is based on the types of businesses licensed by the city and past year’s collections. Those revenues remain stable. The City also budgets conservatively for fine revenue as that revenue stream is unpredictable. Fine revenue is only received once the fines are collected by the State of MN which then remits Hopkins’ portion to them. Parking permits and ticket revenues remain stable. Franchise Fees: In addition to the franchise fee collected on cable television, a franchise fee on electric and gas utilities was implemented in 2004 to help offset the loss of state aids. It impacts residential properties by $2.20 per month on both the electric and gas utility bills. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in 2015 will be about $538,000 or 2.15% of City revenues. While franchise fees on electric and gas remain stable there is federal legislation that may limit the future of cable TV franchise revenues and therefore a more conservative approach was taken to that portion of the franchise fee budget. In 2012 and 2013 due to changes in local government programming the City received additional cable franchise fees for public, education and government (PEG) programming. While we anticipate receiving PEG fees in 2015 we do not know the exact amount so have set the budget conservatively. PEG fees received are restricted in use to provide public access to city council and other public meetings. The city is currently using the funds to provide live streaming of city council and other public meetings and to archive the meetings for future public web streaming access on the city’s website. Total 2014 Actual Revenues: Increased from 2013 as a result of grants received, higher than expected building permit, plan review, fine revenues and franchise fees. The City has continued to be conservative in preparing the 2015 budget realizing the challenges our taxpayers continue to face as a result of the economy. The City workforce has remained stable with many long-term employees. Like other cities we continue to do more with less and work to maximize the budget dollars we do have to work with. Staff has been very conscientious in the management of departmental budgets which has allowed us to maintain staffing while providing the same level if not better services to the public. 2015 BUDGET 33 CITY OF HOPKINS Major Revenue Trends: Shown to the right is a chart showing the trends of three of our major revenue sources. Taxes include both property taxes and tax increments. Taxes continue to increase as other sources of revenue decrease and new tax increment projects come on the tax rolls. Intergovernmental revenues have declined over the last several years; however we were successful in receiving federal COPS grant, a fire prevention and safety grant along with Local Government Aid. Intergovernmental revenues are less reliable so the city has been decreasing its dependence on that source of income. Tax revenues have risen to fill that gap; however we continue to seek other revenue sources to meet out budget needs which include grants. Shown below is a chart showing the relationship between all revenue sources. 2015 BUDGET 34 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $30,140,242. This is more than anticipated expenditures for 2015 and results in a decrease of fund balance of $5,085,745 overall. Of that amount $5,645,219 is from debt service payments due to the payment of two bond issues that will be called. In addition the special revenue funds will add $903,460 where certain funds such as the parking fund and arts center fund are working to rebuild fund balance and tax increment revenues exceed current needs and $309,400 is from enterprise funds as we work to rebuild fund equity and bring the water and sewer fund to a more stable financial position. The largest source of appropriations by category is employee salaries and benefits at $10,988,939. Employee salary and benefits make up 36.46% of the City’s annual appropriation and represent a 3.1% increase from 2014 actual. In 2015 employees received a 2 increase with 2-year union contracts going until 2016. Other factors impacting salaries and benefits are increasing health care insurance costs and state mandated pension contributions. Also contributing to the increase is scheduled step increases as employees gain experience and receive various accreditations. Materials, supplies and services make up 22.42% of appropriations at $6,756,510. This amount represents a 0.85% increase from 2014 actual. The negligible increase 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 2015, the appropriated amount is $284,810 or 0.94% of total appropriations. Anticipated capital costs are for diagnostic equipment upgrades at the Public Works building, lighting conversion at the municipal parking ramp, technology upgrades in the council chambers and a number of improvements at the Arts Center including landscaping, repainting of the theater, replacing theater seats, upgrading the information kiosk, a digital information sign and a number of other smaller projects. Staff was instructed to keep capital items at a minimum as funding restrictions continue to present challenges in budgeting. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets. Debt service appropriations in 2015 increased 134.67% as a result of bonds being called for a February st payment. Total appropriations for 2015 are $10,552,653 which includes $6 million for the bond call 1 and pay-as-you-go tax increment obligation. The 2015 expenditures represent 35.01% of total expenditures and include debt paid within the Enterprise Funds. Another 2.57% of appropriations are for depreciation of property and equipment. The six largest programs of the City in 2015 account for 93% of the appropriations budget and are as follows: Debt Service 9.4 million Public Safety 5.5 million Utilities (water, sewer, storm sewer, refuse) 5.3 million General Government 2.8 million Public Works 2.6 million Recreation 2.4 million 2015 BUDGET 35 CITY OF HOPKINS 2015 BUDGET 36 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2012201320142015 SOURCEACTUALACTUALACTUALBUDGET Current Revenues PROPERTY TAX$10,194,143$10,476,635$10,779,711$11,112,759 TAX INCREMENT2,333,4132,002,6072,697,0062,695,000 SPECIAL ASSESSMENTS658,4371,329,7761,329,776974,340 LICENSE, PERMITS & FINES733,494908,241801,760591,975 INTERGOVERNMENTAL REVENUE1,096,713969,3231,316,7091,051,112 CHARGES FOR CURRENT SERVICES1,491,8071,585,4151,484,3701,433,301 INTEREST ON INVESTMENTS59,28362,621142,88636,000 UTILITY SERVICE CHARGES5,091,1105,031,7425,089,5515,444,600 FRANCHISE FEES523,537546,056561,893538,000 OTHER REVENUES918,691341,053252,253341,724 TOTAL CURRENT REVENUES$23,100,628$23,253,469$24,455,915$24,218,811 Other Financing Sources 1,109,319801,761 1,239,884 2,984,885 TOTAL REVENUES$24,209,947$24,493,353$27,440,800$25,020,572 Less: Inter-Fund Transfers 1,109,3191,239,8841,022,875801,761 TOTAL REVENUES$23,100,628$23,253,469$26,417,925$24,218,811 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECTIVE ADOPTED 2012201320142015 OBJECTIVEACTUALACTUALACTUALBUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS$10,263,036$10,425,969$10,658,678$10,988,939 MATERIALS, SUPPLIES AND SERVICES6,394,0506,440,0706,699,2616,756,510 CAPITAL OUTLAY62,76013,8262,386284,810 DEPRECIATION740,927772,908720,554775,000 DEBT REPAYMENT2,985,3595,689,2874,496,87310,552,653 TOTAL$20,446,132$23,342,060$22,577,752$29,357,912 Other Financing Uses 633,2353,065,7869,278,308782,290 TOTAL EXPENDITURES$21,079,367$26,407,846$31,856,060$30,140,202 2015 BUDGET 37 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2005 thru 2010 reflects overall increased market value of property in Hopkins from redevelopment. During the years 2011-2013 the housing market saw significant declines across the country and Hopkins was no exception. To the right depicts tax capacity value over the last ten years. Despite market conditions Hopkins continued to have growth due to commercial development that was already in place when the market turned. One significant development added over $40 million to the tax base and several smaller projects were completed in 2008-2010 also adding to the tax base. Like the rest of the country Hopkins residential housing values have been falling over the last several years so any gains as a result of commercial development has been tempered by the fall of residential housing values. One bright spot on the horizon is that the commercial projects recently completed added tax capacity for the 2014 rate that is used for 2015 taxes. We are slowly seeing the housing market recover and that too will increase the tax capacity. The City of Hopkins had been experiencing steady growth in its residential property values, however in the last several years Hopkins residential values like values across the country, have fallen. One goal of the city council is to preserve the current housing stock and promote housing growth. While the values have fallen we are seeing them start to increase which will add to the tax capacity. We aren’t seeing the increase in housing value add significantly to the tax capacity due to the Market Value Homestead Credit which removes a portion of homeowner’s values from the tax rolls. This credit is reduced as the value of a home increases until it is phased out entirely at about a home value of $400,000. Other property classes primarily commercial have increased slightly which has mitigated the overall decrease in market values . 2015 BUDGET 38 CITY OF HOPKINS Changes in property values The chart at the left shows the percentage of homeowners that saw value changes in their property. About 14.28% saw decreases in their property values, however, a much greater percentage, 85.69% up from 43.09% in 2014 had between .1% - to over 20% increases in values, an excellent sign that some home values are once again on the increase. The City’s levy is allocated against the tax base along with the levies for the school district, county and miscellaneous government entities. An average home in Hopkins in 2014 is valued at $225,000. Total taxes of $3,561 on an average home in Hopkins helps pay for all levels of governmental services. The chart to the right shows the components of City of Hopkins taxes by taxing district. City Property Tax Levy CITY Shown to the left is the annual cost of taxes on a home valued at $225,000 assuming the value of the home did not change. The increase in 2011 is primarily due to the change in the fiscal disparities program as Hopkins became a net contributor following several years as a net recipient. The fiscal disparities program shares commercial growth across the Minneapolis/St. Paul metropolitan area with cities having little or no growth getting more from the pool than cities that have had commercial growth. Due to Hopkins’ $40 million commercial development project and being one of the few cities with any significant commercial activity we became a net contributor to the program. This shifted a portion of our tax base into the pool resulting in higher taxes for Hopkins residents. Taxes continued to rise in 2012 and 2013 as a result of the fiscal disparities program before leveling off in 2014. 2015 BUDGET 39 CITY OF HOPKINS This residential property owner in Hopkins will experience a modest $7 increase in City property taxes in 2015. The total City taxes on a $225,000 home would be $1,415 in 2015 as compared to $1,408 in 2014. This is a direct result of adding tax base due to new development. Shown below is a summary of annual costs an average homeowner would expect to pay living in Hopkins. Water and sewer rates were increased for 2015 as provided by the Utility Master Plan. As stated earlier in this document this will provide needed funds for necessary infrastructure improvements. Refuse rates are analyzed each year and if necessary are only increased every couple of years and were not increased for 2015, however the recycling rate was. The storm sewer rate is not expected to increase rd in the near future. Hopkins utility rates continue to rank in the lower 1/3 of the Minneapolis/St. Paul metropolitan area. 2015 Annual Property Tax Cost (average home) Annual Service Cost Council$8.48 City of Hopkins Average Annual Service Costs Administrative Services$63.45 on an Average Home. Finance$29.03 20152014 Legal$3.01 City Property Taxes$1,415.00$1,408.00 Unallocated $21.09 Municipal Building$39.03 Water - Consumption Community Services$77.69 7,500 gallons a month Police$496.70 $196.20 $2.18/1,000 gallons Fire$106.47 $189.00 $2.10/1,000 gallons Public Works$283.17 Recreation$27.91 Sewer - Consumption Activity Center$34.58 7,500 gallons a month Planning and Community Development$15.91 $387.00 $4.30 1,000 gallons Pavilion$7.83 $369.00 $4.10 1,000 gallons Arts Center$10.23 Refuse Collection$250.20$250.20 Debt$71.74 Debt on Facility Project$118.68 Storm Sewer$60.00$60.00 Annual Cost for City Services$1,415.00 Franchise Fees$52.80$52.80 Total$2,361.20$2,329.00 City Levy – By Purpose 20152014 General Fund$9,224,729$8,869,7744.00%increase Debt$1,581,729$1,421,46111.27%increase PERA$35,500$0100.00%increase Pavilion$65,000$0100.00%new levy Arts Center$85,000$0100.00%new levy Capital$53,000$125,000-57.60%decrease Total Levy$11,044,958$10,416,2356.04%increase In 2015 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 2015 levy limits were once again eliminated. City tax capacity rates of 62.914% result in payments of $1,415 annually or approximately $118 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 2015 BUDGET 40 CITY OF HOPKINS Net annual property tax costs for program budgets Streets & Park Facilities Debt Police Protection Maintenance $118.68 $496.7 $283.17 Fire Protection Council & Other Debt $106.47 Administration $71.74 $125.06 Assessing, Inspections Building MaintenanceArts Center & $10.23 $39.03 City Clerk $77.69 Planning & Pavilion Zoning Recreation $7.83 $15.91 $62.49 The City’s overall net levy increase is 6.04%. The general fund levy increased in 2015 by 4% or $354,955. A $35,500 special levy for pension increases that was eliminated in 2014 was reinstated for 2015. The debt levy was increased due to a street improvement levy. The debt levy increase was 11.27% or $160,268. The capital levy was reduced from $125,000 to $53,000 as two new levies were added. A levy for the Pavilion and Arts Center was added in 2015. These levies were implemented to provide operational funds for these two facilities that were not cash flowing. The total levy increase for 2015 is $628,723. Despite the significant increase the tax rate only increased by 0.494%. This is due to new tax base that was added in 2014 from the development projects that were completed. 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 pkins residential fire. Ho 2015 BUDGET 41 CITY OF HOPKINS Shown to the left are the main PRINCIPAL TAXPAYERS taxpayers in the City of Percentage Hopkins and their percentage Taxof Total Tax of total tax capacity. The TaxpayerType of BusinessCapacityCapacity largest taxpayer comprises 7.06% of total tax capacity and Colfin Midwest NNN Inv LLCReal Estate$1,453,1607.06% the next largest taxpayer Super ValuGrocery Warehouses969,8904.71% comprises 4.71%. The city Hines Reit Mpls Ind, LLCManagement Services740,7703.60% has a diverse and stable tax Ramsgate ApartmentsApartments233,4751.13% base, which provides the city Southwest Real Estate, Inc.Apartments225,4031.09% with assurance that tax Hopkins Real Estate LLCCar Dealership210,2501.02% revenues will remain stable Duke Realty LTD PartnershipOffice/Warehouses199,4900.97% against the loss of a significant Westside Property OwnersApartments199,2500.97% taxpayer. Interlachen OaksApartments196,3000.95% City Center Ventures LLCFitness Center170,3100.83% Greenfield ApartmentsApartments169,1380.82% Minnehaha Watershed DistrictWatershed District139,2500.68% Ugorets 8098, LLCIndustrial Building134,6900.65% Venturian Place, LLCManufactoring132,6700.64% Stiele & Bakken Inv, LLCReal Estate117,0300.57% City's Total Tax Capacity$20,585,146 PRINCIPAL EMPLOYERS Percentage of Total TaxpayerType of BusinessEmployeesEmployment CargillFood, agricultural, financial and industrial2,31315.974% SuperValuGrocery distributor1,2498.626% ISD 270 HopkinsSchool7074.883% US Post OfficePost Office3142.169% Viro Med Laboratories, Inc.Testing Laboratory2001.381% Oak Ridge Country ClubCounty/Golf Club1951.347% ThermotechPlastic mold manufacturer1901.312% US BankFinancial Institution1851.278% Augustana Chapel View Care CenterHealth Care Services1851.278% City of HopkinsMunicipal Government1611.112% Major employers in Hopkins include Cargill an international producer and marketer of food, agricultural, financial and industrial products, followed by Super Valu, a grocery distribution warehouse facility and ISD 270 Hopkins. While these three organizations employ almost 33% of the workforce in Hopkins the City has a diverse group of employers who have had a long-term presence in the City. Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. 2015 BUDGET 42 CITY OF HOPKINS Estimated YE 2014 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Major Funds General Fund$5,680,619$11,346,716$11,346,716$5,680,6190.00%$0 Economic 4,129,138288,072240,8284,176,3821.14%47,244 Development Special Revenue Fund Art Center(1,167,661)787,121999,277(1,379,817)-18.17%(212,156)Capital projects are scheduled for 2015 Permanent 958,2631,641,5372,630,973(31,173)-103.25%(989,436)Mainstreet rehabilitation Improvement project is scheduled for Revolving Fund2015. We are applying for federal grant funds and will be selling bonds for the balance. Housing Improv 988,693401,757328,9391,061,5117.37%72,818 Refunding Bonds of 2009B Debt Service Fund Water Enterprise 429,1921,675,0001,576,065528,12723.05%98,935Projects for 2015 are Fund *under amounts budgeted for previous years Sewer Enterprise 316,6492,208,7002,368,864156,485-50.58%(160,164)Bonds are scheduled to Fund *be sold in 2015 for the 2015 street & utility project. Storm Sewer 813,634803,000733,738882,8968.51%69,262 Enterprise Fund * The general fund added approximately $290,375 to its fund balance in 2014. This was accomplished by all departments managing their budgets conservatively, reducing or eliminating expenses when appropriate and eliminating non-essential capital items. In addition, the recovering economy brought in inspection permit fees and charges that exceeded the budget and added to the fund balance. The 2015 budget was adopted with 2% wage increase 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 49% of expenditures. This has been accomplished by the reductions identified above and all department managers being particularly conscious of their budgets. Staff continues to work to address how to improve the financial position so that we maintain our fund balance goal. This may involve new or revised revenue options, expenditure adjustments or a combination of all these options. The Economic Development Fund’s 2014 tax revenue collections were over budget as excess tax increment revenues were received. These are revenues over and above what is required in the tax increment plans and therefore are reported in the Economic Development fund to be used for future development. The Economic Development fund provides the funding to assist in development efforts in Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is a development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The 2015 budget is basically a break even budget adding a modest $47,000 to fund balance. 2015 BUDGET 43 CITY OF HOPKINS The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid-1990’s. The Art Center has long-term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives supporting transfers from the Communication fund. In 2013 staffing was restructured to minimize expenses and is continually evaluated to ensure budget goals are met while meeting the needs of the users. The Arts Center is has been evaluating past programming and is looking at trying new performance and artist options that will appeal to a wide audience. The Art Center funding issues were addressed in the Financial Management Plan that was adopted for 2014 and calls for an annual levy starting in 2015 to eliminate the negative fund balance. It is anticipated that the negative fund balance will be eliminated in 10 to 11 years. The Permanent Improvement Revolving Fund will decrease its fund balance in 2015 as bond funds from 2014 are used to complete the 2014 street improvement projects. It is anticipated that we will again be selling bonds in 2015 for the 2015 street improvement project. The Housing Improvement Refunding Bonds of 2009B meets its fund balance requirements as set forth in the debt covenant. The Water Enterprise Fund’s working capital remains positive due to the sale of bonds for the water portion of the street improvement project scheduled for 2015. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continue to 2015 with a $0.08 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 and again in 2013. We plan to do another comprehensive rate study as part of the long- range Financial Management Plan with assistance from our financial advisor. 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 2015, however working capital will decrease by approximately $160,000 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 2015 with a $0.20 increase in rates. The plan calls for annual incremental increases in sewer rates to adequately provide for operations, and capital projects, however fees paid to the Metropolitan Council for wastewater treatment costs have risen faster than projected. Staff periodically reviews and updates the Utility Master Plan to ensure the goals of the plan are being met The plan was reviewed in 2009 and in 2011 with slight modifications made in 2011 and again in 2013. We plan to do another comprehensive rate study as part of the long-range Financial Management Plan with assistance from our financial advisor. The Storm Sewer Enterprise Fund’s working capital will increase in 2015 as scheduled projects are less than in past years. The Storm Sewer Fund will also be included in the comprehensive rate study as part of the long-range Financial Management Plan to be done in 2014 with assistance from our financial advisor. Downtown Hopkins at night 2015 BUDGET 44 CITY OF HOPKINS Non-Major Funds Estimated YE 2014 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Non-Major Funds Special Revenue Funds Chemical 1,30045,00045,0001,3000.00%0 Assessment Real Estate128,3840124,5003,884-96.97%(124,500)Funds on hand will be used to purchase a historical building in the downtown district for use by the Historical Society. Parking130,39496,500139,40487,490-32.90%(42,904)Ramp repairs are scheduled for 2015 Communications492,418250,000244,264498,1541.16%5,736 Depot Coffee (5,927)343,000333,3593,714-162.66%9,641Efforts are underway to Houseerase negative fund balance from 2014 Tax Increment 1,262,8882,728,3941,507,9952,483,28796.64%1,220,399Funds collected are Funds replenishing negative fund (aggregate)balance as the districts tax collections increase Debt Service 9,285,5652,675,4389,046,9002,914,103-68.62%(6,371,462)Refunding bonds sold in Funds (aggregate)late 2014 are being used for the Feb 2015 call date Enterprise Refuse *930,009949,8001,052,176827,633-11.01%(102,376)A new refuse truck will be purchased Pavilion *(34,881)455,600425,617(4,898)85.96%29,983Program revenues have been increased to eliminate negative working capital 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 2014 a portion of those unreimbursed costs were absorbed by the General Fund Fire Department budget The Parking fund, fund balance will decrease in 2015 as for the parking ramp lighting conversion project. Parking permit fees were increased in 2015 to ensure revenues were adequate for the operation of the parking ramp and the various city lots. The city will need to increase parking fees by approximately 10% every other year to provide adequate funds to maintain the parking lots and cover operations. The Communication fund continues to support the advertising and promotion of the Art Center by transferring $86,920 annually to the Arts Center. The city has a part-time web and newsletter editor position which is funded with cable TV franchise fees. The council and staff continue to work at relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals. 2015 BUDGET 45 CITY OF HOPKINS The Depot Coffee House is a chemical free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project is being supported by the General Fund with a $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. Higher than expected expenses in 2014 resulted in a net loss which was addressed when doing the 2015 budget. Staffing was reorganized and a part-time position eliminated. With this change the negative fund balance is scheduled to be eliminated in 2015. Tax Increment fund balance may be used to retire tax increment debt early. Currently most tax increment funds meet their combined fund balance goals. Debt Service fund balance may be used to retire general obligation debt. All debt service funds meet their debt service needs. The Refuse Enterprise Fund has several programs that are subsidized by the refuse rates. The City has explored charging separate fees for these services but has met with resistance from the public. Staff continues to explore options for having these programs generate at least some revenue. Refuse rates were not increased in 2015, however the recycling rates were. Working capital is being used in 2015 to purchase a new refuse truck. The Pavilion Ice Arena expects to see a net income in 2015; staff continues to actively marketing the facility to various groups to increase off season rental income and eliminate the negative cash position. These efforts are paying off as rental bookings are again up for 2015 and the facility is seeing repeat bookings. The facility has debt from equipment certificates sold in 2012 that was used to purchase a new ice machine in 2013. With the facility aging the City looked at long-term capital needs and has started to plan for their financing. The Pavilion is also part of the overall long-range Financial Management Plan that was completed for 2014 Debt Overview The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor’s’ AA+ debt ratings. In January 2014 the city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA to AA+. 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, 2014, was $34,520,000. After reducing the outstanding debt by the amount supported by utilities, special fees, and bonds refunded, called and paid in February 2015, the per capita debt at December 31, 2014 is $851. The total debt principal and interest due in 2015 is $9,993,544, of which $1,600,324 is raised through direct tax levy. The remaining principal and interest is paid with refunding bonds, direct fees, utility fees, tax increments, and special assessments. As depicted in the graph on the following page debt service requirements continue to decline steadily throughout the remaining terms of the bonds. The requirements drop to $1,140,181 in 2024 and to $788,391 in 2027 before the final issue matures in 2030. 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 2015 street improvements in 2015. The actual amount to be bonded is estimated at $4,000,000 and will include as revenue sources a tax levy, utility revenues, federal grant funds and special assessments. Budget impact of the new debt has been factored into the utility funds budgets and the tax levy portion has been factored into the long-range Financial Management Plan. Part of the Financial Management Plan is to minimize tax increases to the taxpayers. Debt that is needed for future projects is part of that plan. 2015 BUDGET 46 CITY OF HOPKINS The graph below illustrates the retirement of debt (principal and interest) in years 2015 through 2030 Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $1,534,544,036 in 2014. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $46,036,321; projected debt subject to the legal limit for Hopkins is $14,965,000 or 31% of total debt limit allowed. OUTSTANDING DEBT AND PURPOSE 2014AGO Improvement BondsStreet Improvements1,895,000$ 2014BGO Refunding Bonds Refund the 2007A and 2007B Bonds6,345,000$ 2013AGO Improvement BondsStreet Improvements3,650,000$ 2012AGO Capital Improvement Plan BondsPolice Station Expansion and Remodeling1,595,000$ 2012BGO BondsStreet Improvements4,195,000$ 2012BGO BondsEquipment Purchases825,000$ 2010AGO Improvement BondsStreet Improvements2,240,000$ 2010BGO Refunding BondsCounty Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A)2,120,000$ 2009AGO Revenue BondsWater & Sewer Improvements and Refunding of 2000 Water and 1999C Storm Sewer Bonds1,730,000$ 2009BGO Taxable Housing Improvement Refunding 1999A & 1999B Housing RefundingImprovement Bonds1,935,000$ 2007AGO Capital Improvement Plan BondsFire Station & Public Works Storage Facility $ 6,360,000 2007BGO Improvement BondsStreet Improvements885,000$ 2005AGO Tax Increment RefundingOaks of Mainstreet Redevelopment210,000$ 2005BTaxable General ObligationWestbrooke Patio Homes Improvements535,000$ Total Outstanding Debt December 31, 2014$ 34,520,000 2015 BUDGET 47 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS TotalTax Increment BondsSpecial Assmnt BondsRevenue Bonds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20159,245,000 748,544 1,355,00037,040 171,615 675,000 130,556 240,000 20162,735,000 574,945 31,103 485,000 144,334 380,000 117,794 260,000 20172,690,000 513,529 26,603 490,000 135,240 385,000 108,969 150,000 20182,750,000 449,843 23,790 505,000 125,509 395,000 99,494 150,000 20192,450,000 388,358 20,490 515,000 115,078 405,000 89,563 160,000 20202,495,000 329,346 16,730 525,000 104,019 410,000 78,951 160,000 20212,560,000 266,116 12,518 540,000 92,291 425,000 67,561 170,000 20222,275,000 207,142 175,000 7,815 525,000 80,271 425,000 55,781 20232,235,000 154,742 185,000 2,683 545,000 67,996 430,000 43,729 20241,025,000 115,181 555,000- 55,191 345,000 32,696 - 20251,055,000 88,056 - 570,000- 41,891 355,000 22,696 2026925,000 63,051 - 585,000- 28,011 205,000 15,546 2027745,000 43,391 - 385,000- 16,841 225,000 11,106 2028760,000 25,552 - 395,000- 225,000 6,045 8,188 2029425,000 10,454 - 145,000- 135,000 1,688 1,813 2030150,000 2,344 - - - - - - $ 3,980,59334,520,000$$ 178,7701,650,000$ $ 1,188,2888,120,000$ 5,420,000$ 882,175$ Housing Fee BondsG.O Bonds Revenue PrincipalInterestPrincipalInterest 2015370,000 99,565 6,605,000 309,768 2016390,000 85,075 1,220,000 196,639 2017405,000 68,604 1,260,000 174,114 2018415,000 50,461 1,285,000 150,589 2019285,000 34,720 1,085,000 128,507 2020295,000 21,665 1,105,000 107,981 2021310,000 1,115,0007,440 86,306 2022 - 1,150,000- 63,275 2023 - 1,075,000- 40,334 2024 - 125,000- 27,294 2025 - 130,000- 23,469 Certificate from our last bond rating 2026 - 135,000- 19,494 upgrade in 2014 which was to AA+. 2027 - 135,000- 15,444 2028 - 140,000- 11,319 2029 - 145,000- 6,953 2030 - 150,000- 2,344 $2,470,000$ 367,530$ 1,363,83016,860,000$ 2015 BUDGET 48 CITY OF HOPKINS The following is a schedule of the City’s debt by major and non-major funds. Enterprise Fund debt consists of water, sewer, storm sewer debt and Pavilion. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. Water, sewer, storm sewer enterprise fund debt are major funds, the Pavilion is a non-major fund. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Major Enterprise Fund Bonds Total - All FundsWater Fund BondsSewer Fund BondsStorm Sewer BondsNonmajor EnterpriseTotal Enterprise Funds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20159,245,000 748,544 320,000 56,310 100,000 41,318 235,000 29,928 20,000 3,000 675,000 130,556 20162,735,000 574,945 145,000 50,310 105,000 38,643 110,000 26,241 20,000 2,600 380,000 117,794 20172,690,000 513,529 145,000 46,785 105,000 35,730 115,000 24,254 20,000 2,200 385,000 108,969 20182,750,000 449,843 155,000 42,997 105,000 32,656 115,000 22,041 20,000 1,800 395,000 99,494 20192,450,000 388,358 155,000 38,073 110,000 29,493 120,000 20,597 20,000 1,400 405,000 89,563 20202,495,000 329,346 155,000 35,010 110,000 26,068 125,000 16,873 20,000 1,000 410,000 78,951 20212,560,000 266,116 165,000 30,710 115,000 22,368 125,000 13,883 20,000 600 67,561 425,000 20222,275,000 207,142 165,000 26,160 115,000 18,568 125,000 20,00010,853 200 55,781 425,000 20232,235,000 154,742 175,000 21,510 125,000 14,618 130,000 7,601 430,000 43,729 -- 20241,025,000 115,181 175,000 16,710 125,000 10,518 45,000 5,468 345,000 32,696 -- 20251,055,000 88,056 180,000 11,810 130,000 15,318 (4,432) 355,000 22,696 45,000 -- 2026925,000 63,051 115,000 8,160 45,000 3,668 205,000 15,546 45,000 3,718 -- 2027745,000 43,391 120,000 5,735 55,000 2,635 225,000 11,106 50,000 2,736 -- 2028760,000 25,552 120,000 3,043 55,000 1,400 225,000 6,045 50,000 1,603 -- 2029425,000 10,454 65,000813 376 135,000 1,688 40,000 50030,000 -- 2030150,000 2,344 - - - - - - - - - - 34,520,000$ 394,135$ 1,430,000$ 293,849$ 1,475,000$ 181,391$ 160,000$ 12,800$ 5,420,000$ 882,175$ $ $ 3,980,5932,355,000 Major FundNon-Major Funds - Aggregate Hsg Imprv Rfdg Bds of 2009BDebt Service Fund BondsTotal Debt Service Fund PrincipalInterestPrincipalInterestPrincipalInterest 2015250,000 75,518 8,320,000 542,471 8,570,000 617,988 2016260,000 67,218 2,095,000 389,933 2,355,000 457,151 2017265,000 57,566 2,040,000 346,994 2,305,000 404,560 2018270,000 46,728 2,085,000 303,622 2,355,000 350,349 2019285,000 34,720 1,760,000 264,075 2,045,000 298,795 2020295,000 21,665 1,790,000 228,730 2,085,000 250,395 2021310,000 1,825,0007,440 191,115 2,135,000 198,555 2022 - 1,850,000- 151,361 1,850,000 151,361 2023 - 1,805,000- 111,013 1,805,000 111,013 2024 - 680,000- 82,485 680,000 82,485 2025 - 700,000- 65,360 700,000 65,360 2026 - 720,000- 47,505 720,000 47,505 2027 - 520,000- 32,285 520,000 32,285 2028 - 535,000- 19,507 535,000 19,507 2029 - 290,000- 8,766 290,000 8,766 2030 - 150,000- 2,344 150,000 2,344 $ 1,935,000$ 310,854$ 27,165,000$ 2,787,564$ 3,098,41829,100,000$ 2015 BUDGET 49 CITY OF HOPKINS Through the visioning process the City has discovered that there are many community needs that the City of Hopkins must meet. The future debt capacity will allow the City to issue debt to provide for our community’s needs and desires while keeping property taxes reasonable. Principal and interest payments for the City are projected to stay fairly level over the next several years before dropping in 2024 and again in 2027. The large drop in 2016 follows a $5.975 bond call in 2015. Refunded bonds for this call were sold in late 2014. 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. 2015 BUDGET 50 CITY OF HOPKINS 2015 Capital Improvement Projects Building Improvements – The Hopkins Center for the Arts built in 1997 has been upgrading and enhancing the facility that is approaching 20 years old. In 2015 we will be replacing the theater seats and backs, painting the theater, upgrading the information kiosk, upgrading the landscaping around the building, and installing a hand washing sink. There are no budgetary savings that result from these projects, however by enhancing the facility the goal is to increase rentals and gallery showings. The Activity Center, a facility for senior programming will be refurbishing the multipurpose gymnasium that is used for many programming activities and is rented to outside organizations for their functions. Landscaping around the building will all be upgraded. While there is no substantial operational savings that result from these projects, we expect to see rental income increase as the gymnasium becomes more attractive to outside organizations looking for functional rental space. The Council Chambers continues with its technology improvements in 2015 to upgrade the presentation table. This table is used by those presenting information to the city council at council meetings. There are no operational savings to this project; however it will increase the efficiencies of those making presentations as they will not have to ask the video technician to bring up the various presentation options, they will be able to do that themselves through controls at the table. The Pavilion Ice Arena built in 1990 is scheduled to replace the evaporator condenser. The current condenser has extensive scaling and has experienced a loss in efficiency causing higher head pressures and putting greater strain on the compressors. This replacement will prevent a potential leak of Freon resulting is greater expense and need for repair. This replacement is expected to save approximately $1,000 in maintenance and operational cost while preventing further costly repairs. The Public Works Building will have the garage upgraded; wash bay roof and air handler replacements and the fuel system upgraded in 2015. The garage area needs to be brought up to new requirements for above and below ground hoists, the ventilation system needs to be brought up to current standards and to prevent fumes from entering the office areas and finally the floor drain system is in poor condition. In 2015 we will do the site evaluation, have plans and specs drawn up and obtain cost estimates. The work is expected to be done in 2016. The wash bay roof was installed in 1995 has had numerous leaks and has reached the end of its life span. The fuel system was installed in 1989, updated in 1995 and the hardware and software is obsolete. A failure of this system could disrupt our ability to dispense fuel resulting in city vehicles purchasing fuel from local vendors at a higher cost. All these repairs, repairs, replacements will ensure there is no disruption of service thereby jeopardizing our service to taxpayers. Parks – Scheduled for 2015 is the replacement of the Oakes Park picnic shelter. This picnic shelter has exceeded its life expectancy and the replacement will save approximately $2,000 in annual maintenance costs. Additional improvements at Oakes Park include lighting improvements which will result in a maintenance savings and reduction in the electric bill estimated at $3,000 per year. The Burns Park warming house is 40+ years old and looks dated and drab. The warming house will be rehabbed with new roofing, exterior treatment and landscaping making it a more attractive amenity and reducing maintenance costs by approximately $2,000. In addition we will construct a new storage building at Valley Park for use by the athletic organizations using the fields and for park maintenance needs. This will save time and effort in transporting equipment needed for maintenance. The park projects are needed to protect the City’s investment, prolong the life of park and improve play conditions. Depot Coffee House, a chemical free facility for teen that houses a coffee shop which partially supports the facility has applied for a grant to expand their outdoor options for the teens. Plans call for an outdoor multipurpose court, benches, picnic tables and landscaping improvements. There is a local match to the grant that totals $50,000. Remaining funding for this project is from Hennepin County ($125,000) and from private donations ($50,000). The total project is expected to cost $225,000. These improvements do not have operational savings, however provide additional options for the teens to relax and play in a safe environment. 2015 BUDGET 51 CITY OF HOPKINS Pedestrian and Bike Trail Improvements – The City recently adopted a plan to increase pedestrian and bicycle access and safety. As part of that plan a number of bike lanes will be painted along with constructing trails and sidewalks. There are no operational or budgetary savings from this project but is done as the City’s commitment to healthy living for Hopkins area residents. 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 2015 the City anticipates spending approximately $24,125,000 on street improvements that also include water, sewer and storm sewer infrastructure improvements. The largest project is the Shady Oak Road (CSAH 1) reconstruction and widening that is being done in cooperation with the City of Minnetonka and Hennepin County. The $18.8 million in the CIP is the City’s portion of this project that includes state funding from Hopkins’ State Aid Construction allocation. A complete listing of 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. Utilities – Included in the CIP for 2014 is annual storm drainage maintenance in the form of concrete alley repairs, along with upgrade of water, sewer and storm sewer lines done in conjunction with residential street improvements. Operational impacts are reduced maintenance costs within the utility funds estimated at $5-10,000 annually. In conjunction with the Shady Oak Road reconstruction the City will provide an outlet pipe from Shady Oak Pond into the CSAH 61 storm drainage system. Shady Oak Pond has no outlet and frequently floods streets and residential property after heavy rains. Operational impacts include budgetary savings of $10,000 annually as the area will no longer need to be pumping following heavy rains. A storage shed will be constructed at Valley Park for use by athletic organizations for Burns Park warming shelter city maintenance needs. that is scheduled for upgrades is seen in the left background. 2015 BUDGET 52 CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2015 Project Title InvestmentProject Description Hopkins Art Center$170,610Replace theater seats and backs, information kiosk, landscaping, storage, hand washing sink and paint theater Hopkins Activity Center$80,000Landscaping and multipurpose gym improvements In Communication Fund$35,000Upgrade presentation table in council chambers Pavilion Ice Arena$60,000Evaporator condenser replacement Public Works Building$70,500Garage door replacement, wash bay improvements, fuel system upgrade Parks - Lighting$40,000Oakes Park - lighting Parks - Warming House$60,000Burnes Park - warming house Parks - Picnic Shelter$30,000Oakes Park - replace picnic shelter Parks - Storage Building$25,000Valley Park - Construct storage building Recreation$225,000Depot Coffee House recreation area - outdoor multipurpose court, benches, picnic tables, landscaping improvements County Road 61 - Shady Oak Road$18,800,000Road widening and reconstruction Parking Lots & Alley Improvements$1,150,000City parking lots (4) and HCRRA alley Residential Street Improvements$175,0002015 Street mill and overlay project along Oakridge Road Mainstreet Rehabilitation$4,000,000Mill and overlay of downtown Mainstreet, upgrade of pedestrian crossings to include enhanced crosswalks, sidewalk repairs and traffic signal upgrades Railroad Quiet Zone$25,000Plan and design of railroad quiet zone. Pedestrian & Bike Improvements$25,000Painting bike lanes, constructing trails and sidewalks Storm Drainage System$20,000Concrete alley repairs Storm Drainage System$230,000Provide outlet pipe to Shady Oak Pond into CSAH 61 in conjunction with Shady Oak Road reconstruction TOTAL$25,221,110 The projects described on the previous page are planned for 2015. 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. 2015 BUDGET 53 CITY OF HOPKINS Equipment Replacement Plan 2015 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 $929,300. 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 2015 ERP and have been approved for purchase in 2015. Project TitleProject Description Investment Technology Upgrades$149,600Replacement and/or upgrades of staff computers, printers and scanners, network servers, telephone system Activity Center$8,800Sound system/Public Address system upgrade. Current system is outdated and is not functional Activity Center$12,200Tables - replace old, worn and non-functioning tables used for various functions Arts Center$14,700Technology upgrades - video camera updates and Community Room audio visual equipment Arts Center$10,000Update information kiosk and replace floor scrubber Fire - Aerial Truck$54,217Lease payment on portion of aerial truck financed in 2008 Fire - Vehicles$29,606Three leased vehicles and outfitting of those vehicles Fire - Building Equipment$14,300Replaced aging floor scrubber Fire - Workout Room$17,400Replace elliptical machine, treadmill and weight lifting equipment in the workout room that is used by police & fire personnel Police Patrol Vehicles $90,000Marked patrol cars used by patrol officers to respond to calls, enforce traffic laws and perform general patrol duties Police - Sergeant's Vehicle$45,000Marked patrol cars used by sergeants to respond to calls, enforce traffic laws and perform duties Police Administrative Vehicle$16,923Police administrative and detective vehicle - Annual lease and cost of outfitting the vehicle with needed equipment. Police - Drug Task Force $6,189Drug Task Force vehicle - Annual lease and cost of outfitting Vehiclethe vehicle with needed equipment. Police - School Resource $11,000School Resource Officer vehicle - leased vehicle and outfitting Officerof vehicle Police - Portable & Mobile $12,300Replacement of portable and mobile radios. Police - Building$17,000Video server for building Public Works - Grass $11,500Pull behind overseeder used to seed grass into established Overseederturf areas to build thicker grass in athletic fields Public Works - Mower$11,000Riding mower used by parks division Public Works - 4x4 3/4 Topn $30,400Truck used by streets division for heavy loads and pulling Truck with Plowtrailers Public Works - Refuse Truck$204,800Replacement of one refuse truck TOTAL $766,935 2015 BUDGET 54 CITY OF HOPKINS 2015 Other Budgeted Capital Expenditures Along with the Capital Improvement and Equipment Replacement Plans the city has the following capital items budgeted in the operating budgets of the General and Special Revenue Funds. The first year an item is requested it must be funded within the department making the request. Once the item has been funded it will be placed in the ERP for future replacement. All construction related capital items are always placed in the CIP regardless of the funding source. Items with a value of $5,000 or greater are defined as capital expenditures within the General and Special Revenue Funds. Items with a value of $5,000 or more will be placed in the ERP for future replacement once funded by the department making the request. The exception is capital items in the Chemical Assessment Team Special Revenue Fund, which is fully funded by State of Minnesota HazMat grant dollars. The following capital items have been budgeted in the General and Special Revenue Funds for 2015. PROJECT TITLE General Fund Public Works$9,500Diagnostic equipment upgrade and pull behind tug style turf aerator attachment Special Revenue Funds Parking$45,000Lighting conversion at municipal ramp TOTAL$54,500 Total budgeted capital items from all funding sources totals $26,042,545 for 2015. Items in the City’s Equipment Replacement Plan include police, fire and refuse vehicles. 2015 BUDGET 55 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS ApprovedProjected 201420152016201720182019 ProjectedBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax8,953,481$ 9,307,729$ 9,519,664$ 9,712,938$ 9,912,178$ 10,102,527$ Intergovernmental Revenues956,514 843,112 800,000 825,000 850,000 900,000 License, Permits and Fines780,586 569,975 675,000 700,000 720,000 740,000 Charges for Current Services295,066 209,300 250,000 255,000 260,000 265,000 Other Revenue 68,849 126,600 50,000 50,000 50,000 55,000 Franchise Fee 300,789 290,000 300,000 310,000 325,000 325,000 11,346,71611,355,285 11,594,664 11,852,938 12,117,178 12,387,527 Total Revenues Current Expenses Salaries and Employee Benef 8,736,8648,583,931 8,911,601 9,089,833 9,271,630 9,457,063 2,590,3522,469,597 2,668,063 2,748,104 2,830,548 2,915,464 Materials, Supplies and Servic Capital outlay 9,500- - - - - Transfer Out 10,000 10,000 15,000 15,000 15,000 15,000 11,346,71611,063,528 11,594,664 11,852,938 12,117,178 12,387,527 Total Expenditures Change in Fund Balance291,757 - - - - - Fund Balance5,680,619$ 5,680,619$ 5,680,619$ 5,680,619$ 5,680,619$ 5,680,619$ General Fund Property tax revenue is the amount needed to fill the gap between budgeted revenues and appropriations. The average increase in levy for the general fund for years 2015 through 2019 is projected to be 2-3.0% which the City Council feels is responsible given the current economic situation. This projection reflects an appropriation increase of 3.66% for 2015 and an average increase for years 2016-2019 of 1.7%. The actual amount for any particular year may be reduced through appropriation cuts or new revenue sources. The city’s reliance on support from the state has significantly decreased over the years as the state faced its budget challenges and reduced local support. At one time taxes were less than 70% of total revenues. They now comprise 82%. The city no longer relies on state support when budgeting due to its uncertainty. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. Due to recent economic development we expect the market value will start showing growth for tax year 2016. The city continues to work with developers on several redevelopment projects that will contribute to the increase in the tax base despite what current market trends indicate. Therefore Hopkins tax base will most likely see an overall increase in the next few years. Franchise fees – The City implemented an electric and gas utility franchise fee in 2004 to help offset the amount of tax levy needed to fund general operations. The franchise fee has an optional sunset clause after two years but has been renewed for two additional years in 2007, 2009, 2011 and for five years in 2013. The franchise fee is set to expire December 31, 2018 and staff most likely will recommend its renewal as this source of income has become an important component of the budget. While the franchise fee is reviewed annually the City Council along with staff continues to analyze its usefulness. 2015 BUDGET 56 CITY OF HOPKINS Intergovernmental revenue received by the City include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. The City of Hopkins receives less than 8% of its budget from state grants and programs. The revenue we do receive is derived from fees on services to the public – police & fire aid is from fees on insurance policies purchased by individuals and companies, municipal state aid is derived from gas tax. Both these sources remain stable. The State of Minnesota also provides Hopkins with about $300,000 in Local Government Aid. This funding source previously received up until 2003 before it was eliminated was reinstated at a much lower level in 2014 and continues into 2015. Licenses, permits and fines include building permits are dependant on new construction and remodeling projects. Based on projected new construction projects, historical information and economic conditions revenues are expected to increase slightly for 2015 from the 2014 budget with revenues continuing to show small increases in the following years as. Fine revenue continues to be stable with slight increases due to implementation of license violation and administrative citations. The additional revenues received in 2014 were from commercial re-development projects. Unless a developer’s commercial project has funding it is the City’s practice to not budget for those amounts. Various programs throughout the City generate charges for services and a significant portion of this line item is plan review, housing inspection fees and vacant property registrations. Charges are usually increased by an inflationary rate but due to projected development and the resulting plan review fees we expect to see a larger increase for the 2015 budget. Future projections are to forecast an increase of 1% annually. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $11,346,716 and an appropriation budget of the same. The increase in appropriations over 2014 is $400,587 or 3.66%. The budget was prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2015, the budget was prepared with no new staffing, one position left open for the year, a 2% wage increase for all employee groups, two small general fund capital items, and small inflationary increases in street maintenance expenses for road repairs and other general departmental expenses. The enhanced medical response program implemented in 2007 will continue into 2015 as the program has allowed for greater efficiencies in the police department and increased service to the public. Other budget considerations for 2054 are the cost of employee health insurance and state mandated increases in employee pension funds along with normal inflationary increases. The council attempts to balance maintaining the current level of services while meeting the increasing needs of the public. An emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff implemented a long-rage financial management plan for 2014 that provides funding for future needs. The plan includes staffing, operational and capital needs and sets forth funding mechanism to meet those expenditures. This plan played a key role in developing the 2015 budget for all city funds. Staff also continues to explore ways to contain costs and develop new revenue sources so that we can maintain the quality of life Hopkins residents have come to expect. 2015 BUDGET 57 CITY OF HOPKINS The chart to the left shows 2014 actual expenditures along with the 2015 approved budget and projected budgets from 2019 through 2019. The general fund tax levy rises in proportion to general fund expenditures. Currently Hopkins relies on its property taxes as its major source of revenue. In fact property taxes account for 82% of General Fund revenues. 2015 BUDGET 58 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department Budget 2013201420142015$ Amount ActualActualBudgetBudgetChangeChange Council $ 69,112 $ 71,519 $ 69,872 $ 70,417 $ 545 0.78% Administrative Services 494,038 517,507 500,589 527,051 26,462 5.29% Finance 246,433 258,994 243,119 256,081 12,962 5.33% Legal 142,854 171,685 143,000 145,000 2,000 1.40% Municipal Building 283,911 304,697 317,414 324,246 6,832 2.15% Community Services 970,926 1,013,372 991,362 1,030,737 39,375 3.97% Police 4,397,727 4,396,663 4,483,494 4,511,890 28,396 0.63% Fire 1,119,100 1,084,506 956,165 985,987 29,822 3.12% Public Works 2,293,610 2,422,216 2,384,144 2,503,936 119,792 5.02% Recreation 569,804 585,914 586,329 589,560 3,231 0.55% Planning & Economic Dev. 126,704 123,993 132,191 135,162 2,971 2.25% Community Development 89,768 87,124 88,250 91,449 3,199 3.62% Unallocated 44,280 25,338 50,200 175,200 125,000 249.00% TOTAL $10,848,267 $11,063,528 $10,946,129 $11,346,716 $ 400,587 3.66% 2014 Mayor & Council Jason Gadd, Cheryl Youakim, Mayor Gene Maxwell, Molly Cummings, Kristi Halverson 2015 BUDGET 59 CITY OF HOPKINS Budget Projections – Other Major Funds The City also prepares budget projections for its budgeted major funds which include the following: Special Revenue Funds – Economic Development, Arts Center Debt Service Fund – Taxable Housing Bonds of 2009B Enterprise Funds – Water, Sewer, Storm Sewer Economic Development Fund ApprovedProjected 201420152016201720182019 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax$ 535,083$ 272,572$ 278,023$ 283,584$ 289,256$ 295,041 Intergovernmental Revenues 49,995 - - - - - Other Revenue 65,629 15,500 15,500 15,500 15,500 15,500 650,707 288,072 293,523 299,084 304,756 310,541 Total Revenues Current Expenses Salaries and Employee Benefits178,797 178,011 182,461 187,023 191,698 196,491 Materials, Supplies and Services122,727 62,817 63,445 64,080 64,720 65,368 Transfer Out 61,000 - - - - - 362,524 240,828 245,906 251,102 256,419 261,858 Total Expenditures Change in Fund Balance 288,183 47,244 47,617 47,981 48,337 48,682 Fund Balance$ 4,129,138$ 4,176,382$ 4,223,999$ 4,271,980$ 4,320,317$ 4,369,000 The main source of revenue for the Economic Development Fund is a special development tax levy based on a percentage of the market value. As the market value fluctuates so does the amount of the levy. Funds are used for development efforts by the City and to provide assistance to developers. The budgeted transfer which ended in 2014 was to support the Arts Center. Beginning in 2015 and pursuant to the long-range financial management plan this transfer is eliminated and replaced with a tax levy. Intergovernmental revenues in the form of grants from the County or Metropolitan Council are applied for when there are specific needs by a developer for site remediation in order to make a project viable. In the past the City has been successful at obtaining these grants on behalf of developers which has assisted in a number of recent projects which in turn adds to the tax base. The Gallery Flats apartments are a recent development project that brought 163 luxury apartments to the housing market in 2014. 2015 BUDGET 60 CITY OF HOPKINS Arts Center Approved Projected 201420152016201720182019 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax-$ 85,000$ 150,000$ 200,000$ 260,000$ 215,000$ Intergovernmental Revenues41,998 58,000 75,000 80,000 85,000 90,000 Charges for Current Services465,449 521,901 532,339 542,986 553,846 564,922 Other Revenue23,856 35,300 24,000 25,000 26,000 27,000 Transfers In147,920 86,920 86,920 86,920 86,920 86,920 787,121679,223 868,259 934,906 1,011,766 983,842 Total Revenues Current Expenses Salaries and Employee Benefits376,232 393,320 401,186 409,210 417,394 425,742 Materials, Supplies and Services379,243 410,647 414,753 418,901 423,090 427,321 Capital Outlay- 195,310 55,925 320,000 69,100 - 755,475 999,277 871,865 1,148,111 909,584 853,063 Total Expenditures Change in Fund Balance (76,252) (212,156) (3,606) (213,205) 102,181 130,779 Fund Balance$ (1,379,817)(1,167,661)$ (1,383,423)$ (1,596,628)$ (1,494,447)$ (1,363,668)$ The Hopkins Center for the Arts “Arts Center” was built in 1997 with funds from the City, the State of Minnesota as well as contributions from corporations, foundations, local civic organizations, businesses and individuals. The Arts Center is owned by the City of Hopkins and has a major tenant in Stages Theater Company (children’s theater) and Hopkins School District 270. While ticket sales and lease rent provide a significant income stream it has not always been sufficient to meet expenditures and as a result the fund has a large deficit. Over the last five years various changes in operations has resulted in some success at reducing the deficit, however it has not been sufficient to totally eliminate the negative position. As part of the City’s long-range financial management plan staff and council emphasized that the negative position must be eliminated. While not ruling out donations and naming rights to the theater, with the state of the economy we need to address the deficit now. As a result the City implemented a tax levy for 2015 that will eliminate the negative fund balance over the next ten years. In addition, Arts Center staff has been reorganized and additional efforts have been made to rent and lease the various available spaces to the extent possible. Arts staff has also been successful at obtaining grants for programming from the MN Arts Boards which help underwrite the cost of hiring performance artists. Expenditures are expected to increase 1-2% a year to keep up with inflation. In addition to operational expenditures the Arts Center due to its age has several capital needs over the next couple of years that add to its budget challenges. The Arts Center has a partner in their fund raising efforts through the Friends of the Hopkins Center for the Arts, a 501(c)3 nonprofit that raises funds to support arts programming at the Center, coordinates volunteer efforts and fosters public awareness of the Center. 2015 BUDGET 61 CITY OF HOPKINS Taxable Housing Bonds of 2009B ApprovedProjected 201420152016201720182019 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Special Assessments390,893$ 399,257$ 385,000$ 380,000$ 375,000$ 370,000$ Other Revenue7,543 2,500 1,300 1,300 1,300 1,300 398,436 401,757 386,300 381,300 376,300 371,300 Total Revenues Current Expenses Materials, Supplies and Services1,977 3,421 1,800 1,800 1,800 1,800 Debt Service Payments 327,637 325,518 326,320 328,020 323,370 317,530 329,614 328,939 328,120 329,820 325,170 319,330 Total Expenditures Change in Fund Balance 68,822 72,818 58,180 51,480 51,130 51,970 Fund Balance$ 988,693$ 1,061,511$ 1,119,691$ 1,171,171$ 1,222,301$ 1,274,271 Collections of special assessments for the Taxable Housing Bonds of 2009B are expected to exceed the debt service requirements of the bonds. Bonds for this project were originally sold in 1997 and were refunded in 2009 at a significant savings. Special assessments collected on two condominium projects pay for the debt service that funded private improvements on those properties. The special assessments cannot be prepaid so at the end of the debt service period any excess funds will be returned to the homeowners association for additional improvements to the property pursuant to the agreement. Water Fund ApprovedProjected 201420152016201720182019 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges$ 1,351,374$ 1,525,400$ 1,555,908$ 1,587,026$ 1,618,767$ 1,651,142 Other Revenue 162,400 150,000 152,000 154,000 156,000 158,000 1,513,774 1,675,400 1,707,908 1,741,026 1,774,767 1,809,142 Total Revenues Current Expenses Salaries and Employee Benefits410,521 342,028 352,289 362,858 373,743 384,956 Materials, Supplies and Services721,494 839,727 856,522 873,652 891,125 908,948 Depreciation 249,756 250,000 250,000 250,000 250,000 250,000 Debt Service Payments 69,154 92,510 50,310 46,785 42,997 39,072 Transfer Out 45,000 45,000 45,000 45,000 45,000 45,000 1,495,925 1,569,265 1,554,120 1,578,294 1,602,865 1,627,975 Total Expenditures Net Income 17,849 106,135 153,788 162,732 171,901 181,167 The water fund has several planned maintenance projects planned for 2015 that will draw on reserves. In the budget are plans to replace effluent and high service valves at the treatment plant, upgrades to wells. Rates were increased 4% for 2015 and plans call for increases each of the next four years. Maintenance costs are projected to increase about 2% over the next 4 years. Budgeted transfers are for the water funds share of the public works facility debt as the water department headquarters are located in that facility. The City plans on doing a rate study in 2015 or all enterprise funds as part of our long-range financial planning. 2015 BUDGET 62 CITY OF HOPKINS Sewer Fund ApprovedProjected 201420152016201720182019 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges2,026,838$ 2,207,500$ 2,306,838$ 2,410,645$ 2,519,124$ 2,632,485$ Other Revenue90,592 1,200 1,200 1,200 1,200 1,200 2,117,430 2,208,700 2,308,038 2,411,845 2,520,324 2,633,685 Total Revenues Current Expenses Salaries and Employee Benefits229,441 345,773 352,688 359,742 366,937 374,276 Materials, Supplies and Services1,595,024 1,774,673 1,792,420 1,810,344 1,828,447 1,846,732 Depreciation 158,431 170,000 172,000 172,000 172,000 172,000 Debt Service Payments 46,460 41,618 38,642 35,730 32,655 29,492 Transfer Out 50,000 50,000 50,000 50,000 50,000 50,000 2,079,356 2,382,064 2,405,750 2,427,816 2,450,039 2,472,500 Total Expenditures Net Income 38,074 (173,364) (97,713) (15,971) 70,285 161,185 Sewer treatment costs to the Metropolitan Council, a regional sewer treatment system are 54% of the expenditures of the sewer fund. The Met Council charges municipalities a percentage of their annual budget based on individual cities water flow. This charge can fluctuate based on water used in Hopkins versus the entire region although our percentage has stayed constant the last few years. The variable factor is the Met Council budget. Sanitary sewer charges to customers were increased 5% in 2015 and plans call for rate increased in each of the next four years. In 2015 scheduled maintenance includes sewer lining, manhole repairs and televising the main sewer lines at an estimated cost of $50,000. Budgeted transfers are for the sewer funds share of the public works facility debt as the sewer department headquarters are located in that facility. The City plans on doing a rate study in 2015 or all enterprise funds as part of our long-range financial planning. Storm Sewer Fund ApprovedProjected 201420152016201720182019 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges792,898$ 802,000$ 802,000$ 802,000$ 802,000$ 802,000$ Other Revenue8,944 1,000 1,200 1,200 1,200 1,200 803,000801,842 803,200 803,200 803,200 803,200 Total Revenues Current Expenses Salaries and Employee Benefits59,204 65,540 66,851 68,188 69,552 70,943 Materials, Supplies and Services194,792 128,686 131,260 133,885 136,563 139,294 Depreciation211,108 227,000 227,000 227,000 227,000 227,000 Debt Service Payments38,140 44,512 40,874 38,886 36,674 34,230 Transfer Out376,966 25,000 25,000 25,000 25,000 25,000 490,738880,210 490,985 492,959 494,788 496,466 Total Expenditures Net Income(78,368) 312,262 312,215 310,241 308,412 306,734 The storm sewer fund has not had to raise rates since 2009 due to its strong financial position and there are currently no plans to raise them in the near future. Expenditures continue to be stable with no significant maintenance projects planned for 2015. Budgeted transfers are for the storm sewer funds share of the public works facility debt as the storm sewer department headquarters are located in that facility. The City plans on doing a rate study in 2015 or all enterprise funds as part of our long-range financial planning and the storm sewer will be included despite its strong financial position. 2015 BUDGET 63 CITY OF HOPKINS GENERAL FUND BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues 3.96% Property Taxes$ 8,721,264$ 8,785,782$ 8,953,481$ 8,952,774$ 9,307,729 Intergovernmental3.65% 552,309 747,832 956,514 813,410 843,112 Licenses, Permits and Fines0.99% 708,218 878,634 780,586 564,395 569,975 Interest Earnings 1 0,618 9 ,468 4 3,849 1 5,000 1 5,000 Charges for Services4.00% 302,451 354,743 295,066 201,250 209,300 Franchise Fees 292,065 293,349 300,789 290,000 290,000 Miscellaneous2.10% 6 3,954 4 1,812 2 5,000 109,300 111,600 Transfer In - Operating - - - - - Total Revenues10,650,877 3.66% 11,111,620 11,355,284 10,946,12911,346,716 Expenditures Salaries, Wages and Benefits Salaries and Wages1.63% 5,872,113 6,186,170 6,300,801 6,307,249 6,410,174 Fringe Benefits2.23% 2,087,379 2,216,263 2,283,130 2,275,840 2,326,690 Materials, Supplies and Services 4.89% Professional & Technical Services 830,251 884,842 928,539 873,920 916,625 Utilities and Maintenance0.43% 789,631 778,504 824,897 828,844 832,367 Operations28.41% 342,073 336,268 358,119 451,980 580,410 City Support Services10.63% 157,160 173,614 171,244 153,916 170,277 3.25% Supplies and Materials 839,475 704,535 729,997 904,900 682,375 Capital Outlay Buildings & Improvements - - - - - Vehicles - - - - - Office Furniture and Equipment - - - - - Equipment 6 ,887 1 1,031 - 5 ,600 9 ,50069.64% Equipment Allocation9.60% 302,389 314,622 341,181 341,181 373,946 Total Expenditures11,117,880 3.39% 11,806,213 12,047,386 11,920,90512,324,524 Transfer Out 1 0,000 3 3,580 1 0,000 1 0,000 1 0,000 Reimbursed Expenditures(1,021,519) (991,527) (993,858) (984,776) (987,808)0.31% Net Total Expenditures10,106,361 3.66% 10,848,267 11,063,528 10,946,12911,346,716 Excess (deficiency) of Rev. over Exp. 544,517 263,354 291,756 - - Ending Fund Balance 5,101,149 5,388,864 5,682,620 5,388,864 5,682,620 2015 BUDGET 64 CITY OF HOPKINS UNALLOCATED Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Property Taxes$8,719,712$8,784,635$8,952,881$10,164,226$9,307,729-8.43% Intergovernmental Revenue20,53221,152310,431310,410409,11231.80% 15,00015,000 Interest earnings10,618 (16,569) 43,849 Franchise Fees292,065293,349300,789290,000290,000 Miscellaneous6581,567359100250 Total Revenues9,043,5849,084,1349,608,30910,779,73610,022,091-7.03% Expenditures Materials, Supplies and Services Operations9,58310,70015,33840,200165,200310.95% Operating Transfers Transfer from other funds - - - - - Transfer to other funds10,00033,58010,00010,00010,000 Total Expenditures19,58344,28025,33850,200175,200249.00% Indirectly Funded Amount9,024,0019,039,8549,582,97110,729,5369,846,891-8.23% 2015 BUDGET 65 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Unallocated PROGRAM SUMMARY The purpose of the unallocated program of the General Fund is to provide budget for unforeseen or unusual expenditures that may occur in a given year. The revenues recorded here are revenues that are not directly associated with another program within the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Monitor tax collections 2. Evaluate franchise fee structure 3. Maximize investment earnings FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Property Taxes $8,952,881 $8,952,774 $9,307,729 3.96% Intergovernmental 310,431 310,410 409,112 31.80% Interest Earnings 43,849 15,000 15,000 0.00% Franchise Fee 300,789 290,000 290,000 0.00% Miscellaneous 359 100 250 150.00% Total Revenues 9,608,309 9,568,284 10,022,091 4.74% EXPENDITURES: Materials, Supplies & Services 15,338 40,200 165,200 310.95% Operating Transfer 10,000 10,000 10,000 -- Total Expenditures 25,338 50,200 175,200 249.00% NET TAX AND GENERAL REVENUE SUPPORTED $9,582,971 $9,518,084 $9,846,891 1.80% 2015 BUDGET 66 CITY OF HOPKINS CITY COUNCIL BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20122013201420142015Change Expenditures Salaries, Wages and Benefits Salaries and Wages25,06223,73823,46224,40024,400 Fringe Benefits1,9921,8851,8801,8671,867 Materials, Supplies and Services Professional & Technical Services -96275 -200-- Operations42,54541,65644,59040,80041,5001.72% City Support Services - - - - --- Supplies and Materials3,3661,7371,0302,8052,450-12.66% Total Expenditures72,96569,11271,23769,87270,4170.78% Indirectly Funded Amount72,96569,11271,23769,87270,4170.78% The City Council Department accounts for the expenses of the mayor and council. 2015 BUDGET 67 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM : Council Administration PROGRAM SUMMARY The Council Administration program of the Council Department establishes city policies, goals and objectives. It approves the budget and monitors the activities of the City Manager and City Attorney. The council also appoints members to boards and commissions. The City Council holds regular meetings and work sessions, receives input from staff, citizens and other interested parties. The Council controls policy through changes in the City Code and Legislative Policies. They control spending through their review and approval of the City budget and various contracts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: Work across all city departments and the community to implement the current Goals and Strategic Plan: (1) Enhance our Small-town Feel, (2) Promote Smart Urban Design and Walkability, and (3) Take it to Them (citizen engagement) 1. Promote city marketing efforts through the “Think Hopkins” campaign 2. Conduct 2015 Citizen’s Academy and Alumni event 3. Publish 2015 City Annual Report 4. Conduct 2015 State of the City event FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits25,342$ 0.00% $ $ 2 6,26726,267 Materials, Supplies & Services45,895$ 1.25% $ $ 4 3,60544,150 71,237$ $ $ 6 9,87270,417 NET TAX AND GENERAL 0.78% REVENUE SUPPORTED71,237$ $ $ 6 9,87270,417 PERSONNEL: Number of FTE positionsMayor and Mayor and 4 Council Citizen’s Academy Class 2015 BUDGET 68 CITY OF HOPKINS ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20122013201420142015Change Expenditures Salaries, Wages and Benefits Salaries and Wages3.52% $ 376,088$ 390,759$ 402,682$ 392,580$ 406,395 Fringe Benefits3.89% 149,239 157,346 152,468 153,407 159,381 Materials, Supplies and Services 2.79% Professional & Technical Services 9,126 7,479 29,571 14,340 14,740 Utilities and Maintenance 4,417 4,015 4,369 4,599 4,8244.89% Operations9.38% 22,827 27,050 17,102 27,305 29,865 City Support Services 1,570 1,622 1,707 1,693 1,97116.42% Supplies and Materials 5,968 7,071 5,457 6,105 5,875-3.77% Total Expenditures3.84% 569,237 595,342 613,357 600,029 623,051 Reimbursed Expenditures (102,523) ( 104,000) ( 104,000) ( 104,000) ( 104,000) Net Total Expenditures4.64% 466,713 491,342 509,357 496,029 519,051 Indirectly Funded Amount4.64% 466,713 491,342 509,357 496,029 519,051 The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services 2015 BUDGET 69 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM : Administrative Services – Administration PROGRAM SUMMARY The Administration program of the Administrative Services Department provides leadership and support to all city programs and operations. Administration controls and directs the City’s affairs. It responds to citizen concerns and participates in affiliated organizations. FY 2014FY 2015 MAJOR OBJECTIVES TO BE FY 2014ApprovedApprovedPercent ACCOMPLISHED IN 2015: BudgetBudgetChange Actual 1. Enhance the agenda and report program EXPENDITURES: that keeps the Council and public informed Salaries/Wages/Benefits $240,587 $239,559 $250,040 4.38% through meetings and correspondence. Materials, Supplies & Services 18,379 23,126 25,531 10.40% 2. Continue the coordinate the future Reimbursed Expenditures (66,000) (66,000) (66,000)0.00% planning of the City through the Capital Improvements Plan (CIP) program. $192,966 $196,685 $209,571 3. Continue to operate and enhance the NET TAX AND GENERAL employee wellness program. 6.55% REVENUE SUPPORTED $192,966 $196,685 $209,571 4. Enhance Leadership and Training for City Council and Staff. PERSONNEL: 5. Prepare a legislative agenda, monitor Number of FTE positions2.052.052.05 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 2015: 1. Ensure compliance with the Affordable Care Act. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 53,245 $ 53,351 $ 54,637 2.41% Materials, Supplies & Services 5,361 3,248 3,412 5.05% Reimbursed Expenditures (16,000) (16,000) (16,000)0.00% $ 42,606 $ 40,599 $ 42,049 NET TAX AND GENERAL REVENUE SUPPORTED $ 42,606 $ 40,599 $ 42,049 3.57% PERSONNEL: Number of FTE positions0.40.40.4 2015 BUDGET 70 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Administrative Services – Wellness PROGRAM SUMMARY FY 2014FY 2015 The Wellness program of the Administrative FY 2014ApprovedApprovedPercent Services Department provides support and ActualBudgetBudgetChange activities to encourage overall general good EXPENDITURES: health of city employees. Materials, Supplies & Services 1,722 2,000 2,000 0.00% MAJOR OBJECTIVES TO BE NET TAX AND GENERAL ACCOMPLISHED IN 2015: 0.00% REVENUE SUPPORTED $ 1,722 $ 2,000 $ 2,000 Goal 2, Strategy 3 – Healthy City Initiatives: 1. Continue to provide healthy guidance to PERSONNEL: Number of FTE positions000 employees. 2. Provide at least one low cost wellness event six times a year. PROGRAM: Administrative Services - Information Services PROGRAM SUMMARY The Information Services program of the Administrative Services Department provides all network hardware and software support for the City. It also provides individual city employees with hardware and software support. The internal web site is designed and maintained through this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Replace Incode with new software to be selected. 2. Roll out Bit9 Application whitelisting to every desktop / server. 3. Expand passive vulnerability scanning to every major network junction. 4. Finish migration to Windows 7. 5. Continue to update and improve network security, efficiency, and reliability. 6. Roll out Appassure backup software to PD network / Move all city servers to Appassure. 7. Update IT business continuity/disaster recovery plan to take advantage of virtualization technologies. 8. Certify the city 100% PCI complaint. 9. Finish migration to new file servers on PD and City networks. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $261,319 $253,077 $261,099 3.17% Materials, Supplies & Services 40,355 30,228 34,312 13.51% Reimbursed Expenditures (22,000) (22,000) (22,000)0.00% $279,674 $261,305 $273,411 NET TAX AND GENERAL 4.63% REVENUE SUPPORTED $279,674 $261,305 $273,411 PERSONNEL: Number of FTE positions2.552.552.55 2015 BUDGET 71 CITY OF HOPKINS FINANCE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Miscellaneous$21,381$21,409$21,536$14,950$14,950 Expenditures Salaries, Wages and Benefits Salaries and Wages270,298280,177286,613290,955299,9963.11% Fringe Benefits90,83588,99692,65892,34097,5465.64% Materials, Supplies and Services Professional & Technical Services75,68156,69949,09731,56038,60522.32% Utilities and Maintenance24,16223,61324,76023,29023,3000.04% Operations10,83212,3768,56812,45011,775-5.42% City Support Services3193673903793913.17% Supplies and Materials13,0956,03114,15610,52010,6000.76% Capital Outlay Equipment Allocation8218175,7665,7661,041-81.95% Total Expenditures486,043469,076482,008467,260483,2543.42% Reimbursed Expenditures(229,776) (229,776)1.32% ( 256,041) ( 234,158) (232,808) Net Total Expenditures230,002234,918252,232237,484250,4465.46% Indirectly Funded Amount208,621213,510230,696222,534235,4965.82% The Finance department consists of six programs. They are: Debt Management, General Accounting, Payroll, Tax Increment Financing Reporting, and Utility Billing 2015 BUDGET 72 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Debt PROGRAM SUMMARY The Debt program of the Finance Department issues, records and maintains debt for the City of Hopkins and the Hopkins Housing and Redevelopment Authority. Debt is issued in accordance with state statute and city charter. Debt is maintained at a manageable level for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2015 bond issue(s). 4. Analyze possibilities of debt refunding(s). 5. Prepare annual debt reporting for county as required by state statutes FY 2014FY 2015 FY 2014ApprovedApprovedPercent BudgetBudgetChange Actual EXPENDITURES: Salaries/Wages/Benefits $ 12,742 $ 12,712 $ 13,222 4.01% Materials, Supplies & Services 1,696 1,720 1,675 -2.62% Reimbursed Expenditures (14,432) (14,432) (16,897)17.08% $ 6 $ - $ (2,000) NET TAX AND GENERAL -- REVENUE SUPPORTED $ 6 $ - $ (2,000) PERSONNEL: Number of FTE positions0.10.10.1 In January 2014 the City was AA+ upgraded to a credit rating by Standard & Poor’s. A certificate recognizing this achievement was presented to the City by the City’s financial advisors. 2015 BUDGET 73 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Accounting PROGRAM SUMMARY The Accounting program of the Finance Department provides financial management for the City and the Housing and Redevelopment Authority. It provides support services to other departments in the City through initiating fiscal plans, implementation and control of those plans, accounting and analysis of transactions. Accounting manages the city’s day-to-day accounting transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The program prepares monthly and quarterly financial statements and compiles the year-end comprehensive financial report. FY 2014FY 2015 MAJOR OBJECTIVES TO BE ACCOMPLISHED FY 2014ApprovedApprovedPercent IN 2015: ActualBudgetBudgetChange 1. Submit CAFR for the GFOA award program. REVENUES: 2. Provide accurate and timely month-end and Miscellaneous $ 6,065 $ 5,550 $ 5,550 0.00% quarterly financial reports. 3. Update the Financial Management Plan EXPENDITURES: 4. Prepare 20-year Capital Improvement Plan. Salaries/Wages/Benefits $194,185 $200,399 $208,616 4.10% 5. Prepare 20-year Equipment Replacement Materials, Supplies & Services 51,696 48,804 53,387 9.39% Plan Reimbursed Expenditures (64,000) (64,000) (64,000)0.00% 6. Update actuarial study on OPEB obligations. $181,881 $185,203 $198,003 6.91% 7. Update CAFR on city website. 8. Implement new finance software NET TAX AND GENERAL 7.12% REVENUE SUPPORTED $175,816 $179,653 $192,453 PERSONNEL: Number of FTE positions2.02.02.0 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 2015: 1. Assist employees with payroll and benefit issues/questions. 2. Provide accurate and timely payroll and reports. 3. Work with insurance company to FY 2014FY 2015 manage insurance programs. FY 2014ApprovedApprovedPercent 4. Prepare benefit open enrollment ActualBudgetBudgetChange information and assist employees with EXPENDITURES: questions regarding their benefit Salaries/Wages/Benefits $ 61,599 $ 61,878 $ 63,067 1.92% options. Materials, Supplies & Services 7,377 6,638 5,071 -23.61% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $ 48,976 $ 48,516 $ 48,138 NET TAX AND GENERAL REVENUE SUPPORTED $ 48,976 $ 48,516 $ 48,138 -0.78% PERSONNEL: Number of FTE positions0.750.750.75 2015 BUDGET 74 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – TIF Administration PROGRAM SUMMARY The Tax Increment Financing Administration program of the Finance Department records and reports tax increment program activities. It is charged with the FY 2014FY 2015 responsibility of ensuring compliance with state FY 2014ApprovedApprovedPercent statutes and guidelines. ActualBudgetBudgetChange EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED Salaries/Wages/Benefits $ 12,585 $ 12,712 $ 13,033 2.53% IN 2015: Materials, Supplies & Services 11,668 3,545 3,500 -1.27% Reimbursed Expenditures (16,257) (16,257) (16,533)1.70% 1. Continue analysis of Tax Increment Financing $ 7,996 $ - $ - funds. NET TAX AND GENERAL 2. Assist with implementation of new TIF -- REVENUE SUPPORTED $ 7,996 $ - $ - districts. 3. Prepare annual Office of the State Auditor PERSONNEL: reports. Number of FTE positions0.10.10.1 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 2015: 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. 4. Implement new Utility Billing software. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 14,440 $ 9,400 $ 9,400 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 98,161 $ 95,594 $ 99,064 3.63% Materials, Supplies & Services 36,231 28,893 27,714 -4.08% Reimbursed Expenditures (115,087) (115,087) (117,378)1.99% $ 19,305 $ 9,400 $ 9,400 0.00% NET TAX AND GENERAL -- REVENUE SUPPORTED $ 4,865 $ - $ - PERSONNEL: Number of FTE positions1.651.651.65 2015 BUDGET 75 CITY OF HOPKINS LEGAL BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Court Fines$ 116,781$ 125,559$ 132,328$ 118,000$ 120,0001.69% Expenditures Materials, Supplies and Services Professional & Technical Services131,152142,989171,685143,000145,0001.40% Operations - - - - - Total Expenditures131,152142,989171,685143,000145,0001.40% Indirectly Funded Amount14,37017,43139,35725,00025,000 The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 2015 BUDGET 76 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Legal PROGRAM SUMMARY The Legal department represents the City in court, at City Council meetings and direct contact with staff and the general public. The firm of 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 2015: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City 4. Assist City staff with development projects FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Court Fines $ 133,328 $ 118,000 $120,000 1.69% EXPENDITURES: Materials, Supplies & Services $ 171,685 $ 143,000 $145,000 1.40% NET TAX AND GENERAL REVENUE SUPPORTED $ 38,357 $ 25,000 $ 25,000 0.00% PERSONNEL: The City contracts with a legal firm to represent the City. 2015 BUDGET 77 CITY OF HOPKINS MUNICIPAL BUILDING Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Expenditures Salaries, Wages and Benefits Salaries and Wages94,54993,579100,73398,263101,4443.24% Fringe Benefits41,52040,97742,97050,97551,7401.50% Materials, Supplies and Services Professional & Technical Services34,24232,30337,94842,00043,0002.38% Utilities and Maintenance120,841118,672119,822125,000125,7000.56% Operations2,8281,1882,7052,3002,300 City Support Services15,08116,83618,32013,98615,49210.77% Supplies and Materials12,15911,07913,29916,89016,570-1.89% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Total Expenditures321,219314,634335,797349,414356,2461.96% (32,000) Reimbursed Expenditures (31,676) (31,999) (32,000) (32,000) Net Total Expenditures289,543282,635303,797317,414324,2462.15% Indirectly Funded Amount289,543282,635303,797317,414324,2462.15% The Municipal Building Department consists of building maintenace. 2015 BUDGET 78 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Municipal Building – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Municipal Budget covers City Hall and the Police Department. In house maintenance personnel and contractual custodial services maintain these buildings and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continuation of Green Initiatives within City Hall. 2. Explore lobby upgrade. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 143,702 $ 149,238 $153,184 2.64% Materials, Supplies & Services 192,094 200,176 203,062 1.44% Reimbursed Expenditures (32,000) (32,000) (32,000)0.00% $ 303,796 $ 317,414 $324,246 2.15% NET TAX AND GENERAL 2.15% REVENUE SUPPORTED $ 303,796 $ 317,414 $324,246 PERSONNEL: Number of FTE positions1.451.451.45 s tht City Hall at 11 Ave and 1 St 2015 BUDGET 79 CITY OF HOPKINS COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Licenses$12,027$11,777$13,292$11,000$12,0009.09% Permits368,227423,470588,076314,980350,01011.12% Current Services101,46946,2574,92035,35023,350-33.95% Expenditures Salaries, Wages and Benefits Salaries and Wages572,662574,522616,753604,605634,2034.90% Fringe Benefits178,857177,296189,964179,500190,8136.30% Materials, Supplies and Services Professional & Technical Services159,223159,220175,981166,155163,705-1.47% Utilities and Maintenance10,78610,74711,52513,88513,723-1.17% Operations23,49123,49124,28330,05034,93516.26% City Support Services42,15542,08140,36140,26540,198-0.17% Supplies and Materials8,6138,6138,59810,99510,310-6.23% Capital Outlay Office Furniture and Equipment - - - - - Equipment Allocation6,9066,8656,9076,9073,850-44.26% Total Expenditures1,002,6921,002,8361,074,3721,052,3621,091,7373.74% Reimbursed Expenditures (60,480) (60,480) (61,000) (61,000) (61,000) Net Total Expenditures942,212942,3561,013,372991,3621,030,7373.97% Indirectly Funded Amount460,489460,852407,085630,032645,3772.44% The Community Service department is made up of four main programs. They are Reception, Assessing, Inspections & City Clerk. 2015 BUDGET 80 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Receptionist PROGRAM SUMMARY The Receptionist program of the Community Services Department answers calls at main switchboard and route calls to various departments. Directs walk-in customers to the appropriate department. Sales of dog licenses and parking permits occur in this program. FY 2014FY 2015 Receipts are accepted for payment of FY 2014ApprovedApprovedPercent building permits and utility bills. The program ActualBudgetBudgetChange also provides clerical and secretarial EXPENDITURES: Salaries/Wages/Benefits47,909 services to other departments. $ $ 4 4,830$ 4 7,7316.47% Materials, Supplies & Services3,916 1 ,103 1 ,22611.15% $ 51,825 $ 45,933 $ 48,957 OBJECTIVES TO BE ACCOMPLISHED IN NET TAX AND GENERAL 2015: Goal 1, Strategy 3- Provide Accessible and 6.58% REVENUE SUPPORTED $ 51,825 $ 45,933 $ 48,957 Friendly City Services: 1. Continue to provide excellent customer PERSONNEL: service Number of FTE positions1.451.451.45 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 2015: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Prepare special assessment rolls for certification on taxes. 2. Assist property owners with property related issues. 3. Maintain the Property and Contact Information in the computer system. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 2,200 $ 2,000 $ 2,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 87,697 $ 88,235 $ 90,578 2.66% Materials, Supplies & Services 124,750 119,372 128,759 7.86% Reimbursed Expenditures (24,000) (24,000) (24,000)0.00% $ 188,447 $ 183,607 $195,337 6.39% NET TAX AND GENERAL 6.46% REVENUE SUPPORTED $ 186,247 $ 181,607 $193,337 The Special Assessment Clerk is PERSONNEL: available to assist with property Number of FTE positions1.051.051.05 tax and assessing related ti 2015 BUDGET 81 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – City Clerk PROGRAM SUMMARY The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business licenses applications are reviewed prior to issuance. The City Clerk is also the purchasing officer of the city. FY 2014FY 2015 FY 2014ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ActualBudgetBudgetChange ACCOMPLISHED IN 2015: REVENUES: Goal 2, Strategy 2 – Go Green Licenses $ 6,617 $ 5,000 $ 6,000 20.00% 1. Purchase “green” or recycled products when available if the pricing is EXPENDITURES: competitive and product meets quality Salaries/Wages/Benefits $ 77,241 $ 67,467 $ 78,476 16.32% standards. Materials, Supplies & Services 16,697 23,995 26,096 8.76% 2. Ensure that the City Document Archives Reimbursed Expenditures (37,000) (37,000) (37,000)0.00% section of the City’s website contains the $ 56,938 $ 54,462 $ 67,572 24.07% most up to date information in all areas listed. NET TAX AND GENERAL 3. Review and update where needed 24.48% REVENUE SUPPORTED $ 50,321 $ 49,462 $ 61,572 applications and forms that are available on the Web site. PERSONNEL: Number of FTE positions0.750.750.75 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 2015: 1. Recruit and train additional Election FY 2014FY 2015 Judges for the 2016 Local Election. Offer FY 2014ApprovedApprovedPercent some part-time positions as requested by BudgetBudgetChange Actual several current Election Judges who may REVENUES: be unable to complete a 15 or 16 hour day. Charges for service $ - $ - $ 20,000 --- 2. Work with Hennepin County City to review voting equipment and the possible EXPENDITURES: replacement. Salaries/Wages/Benefits $ 36,845 $ 31,429 $ 37,180 18.30% Materials, Supplies & Services 25,059 29,379 15,042 -48.80% 3. Work to better organize information and $ 61,904 $ 60,808 $ 52,222 -14.12% supplies for Election Judges use on Election Day. NET TAX AND GENERAL REVENUE SUPPORTED $ 61,904 $ 60,808 $ 32,222 -47.01% PERSONNEL: Number of FTE positions0.350.350.35 2015 BUDGET 82 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Building Code Inspection PROGRAM SUMMARY The Building Code Inspection program of the Community Services Department inspects all new or remodeled buildings to insure they meet the minimum requirements of the state building code. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases and an issuance of a certificate of occupancy. FY 2014FY 2015 MAJOR OBJECTIVES TO BE ACCOMPLISHED FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange IN 2015: REVENUES: Goal 1, Strategy 3- Provide Accessible and License, Permits, Charges $ 304,553 $ 147,480 $150,460 2.02% Friendly City Services: 1. Work on closing out aging permits from the EXPENDITURES: past years. Salaries/Wages/Benefits $ 189,865 $ 190,899 $196,083 2.72% 2. Get Emergency Inspection Packets together in Materials, Supplies & Services 84,187 76,152 77,149 1.31% case of natural disaster. $ 274,052 $ 267,051 $273,232 2.31% 3. Update handouts and website. NET TAX AND GENERAL 4. Continue to cross train staff and get new REVENUE SUPPORTED $ (30,501) $ 119,571 $122,772 2.68% Admin Assistant fully trained 5. Get trained on 2012 building code PERSONNEL: Number of FTE positions2.052.052.05 PROGRAM: Community Services – Fire Code Inspection PROGRAM SUMMARY The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue the fire prevention inspection program. 2. Implement new fire code software. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Permits $ 9,815 $ 4,000 $ 4,000 0.00% -- EXPENDITURES: Salaries/Wages/Benefits $ 37,153 $ 36,351 $ 38,892 6.99% Materials, Supplies & Services 326 324 353 8.95% $ 37,479 $ 36,675 $ 39,245 7.01% NET TAX AND GENERAL 7.87% REVENUE SUPPORTED $ 27,664 $ 32,675 $ 35,245 PERSONNEL: Number of FTE positions0.350.350.35 2015 BUDGET 83 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Heating and Plumbing Code Inspection PROGRAM SUMMARY The Heating and Plumbing Code Inspection FY 2014FY 2015 program of the Community Services Department FY 2014ApprovedApprovedPercent inspects new and remodeled buildings for ActualBudgetBudgetChange heating and plumbing compliance. The process REVENUES: begins with easily accessible customer service at Permits $ 105,930 $ 53,000 $ 53,000 0.00% the inspections counter and continues with plan review; permit issuance, inspection of EXPENDITURES: construction phases. Become familiar with new Salaries/Wages/Benefits $ 90,341 $ 87,098 $ 90,019 3.35% gas, mechanical and energy code. Materials, Supplies & Services 4,879 3,956 4,058 2.58% $ 95,220 $ 91,054 $ 94,077 3.32% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: NET TAX AND GENERAL 7.94% REVENUE SUPPORTED $ (10,710) $ 38,054 $ 41,077 1. Close out open permits from 2006-2012. 2. Work with Engineering to get the storm PERSONNEL: sewer permitting process revised. Number of FTE positions1.01.01.0 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 2015: 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. 3. Continue to educate property owners on the new Rental Inspection Point System so they pass inspections the first time. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: License, permits, charges $ 159,587 $ 131,500 $131,550 0.04% EXPENDITURES: Salaries/Wages/Benefits $ 160,362 $ 158,230 $163,969 3.63% Materials, Supplies & Services 5,644 7,558 7,675 1.55% $ 166,006 $ 165,788 $171,644 3.53% NET TAX AND GENERAL 16.93% REVENUE SUPPORTED $ 6,419 $ 34,288 $ 40,094 PERSONNEL: Number of FTE positions1.821.821.82 2015 BUDGET 84 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Miscellaneous Community Inspection PROGRAM SUMMARY The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. Track responses to citizens and results of the complaint. MAJOR OBJECTIVES TO BE FY 2014FY 2015 ACCOMPLISHED IN 2015: FY 2014ApprovedApprovedPercent Goal 1, Strategy 3- Provide Accessible BudgetBudgetChange Actual and Friendly City Services: REVENUES: 1. Continue with spring and fall Citations, charges for service $ 6,585 $ 8,350 $ 8,350 0.00% sweeps and respond to citizen complaints in a prompt and EXPENDITURES: courteous manner. Salaries/Wages/Benefits $ 77,288 $ 77,532 $ 79,998 3.18% 2. Send out newsletter in spring Materials, Supplies & Services 778 3,733 3,678 -1.47% regarding sweeps potential $ 78,066 $ 81,265 $ 83,676 2.97% violations. NET TAX AND GENERAL 3.31% REVENUE SUPPORTED $ 71,481 $ 72,915 $ 75,326 PERSONNEL: Number of FTE positions0.860.860.86 PROGRAM: Community Services – Vacant Property Management PROGRAM SUMMARY The Vacant Property Management program of the Community Services Department MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue to educate mortgage banks, property managers, realtors and vacant property owners on why we want them to register their property. 2. Send out enforcement letters and billings. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Property Registrations $ 11,000 $ 10,000 $ 10,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 2,016 $ 2,034 $ 2,090 2.75% Materials, Supplies & Services - 2,685 2,685 0.00% $ 2,016 $ 4,719 $ 4,775 1.19% NET TAX AND GENERAL -1.06% REVENUE SUPPORTED $ (8,984) $ (5,281) $ (5,225) PERSONNEL: Number of FTE positions0.020.020.02 2015 BUDGET 85 CITY OF HOPKINS POLICE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Intergovernmental$308,652$349,968$334,859$283,000$204,000-27.92% Licenses95,80192,41796,73196,00096,000 Court Fines/Forfeitures98,06892,36971,69350,00050,5001.00% Penalties6656853151,0001,000 Current Service34,21938,48029,26748,00033,000-31.25% Miscellaneous31,10414,3812,6201,5001,500 Expenditures Salaries, Wages and Benefits Salaries and Wages2,899,8573,016,4072,783,2782,857,2892,864,2040.24% Fringe Benefits1,077,773985,8471,055,0811,036,9211,049,4451.21% Materials, Supplies and Services Professional & Technical Services93,000204,93965,75094,29094,290 Utilities and Maintenance130,98990,81473,57594,37094,370 Operations105,93184,10094,71789,40890,3171.02% City Support Services115,197127,174113,987124,501132,5496.46% Supplies and Materials193,729186,020171,411157,715157,715 Capital Outlay Office Furniture and Equipment - - - - - Equipment - - - - - Total Expenditures4,616,4774,695,3024,357,7994,454,4944,482,8900.64% Indirectly Funded Amount4,047,9674,107,0033,822,3153,974,9944,096,8903.07% There are 10 programs within the Police Department. They are Administration, Patrol, SWAT, Reserves, Investigations, Drug Enforcement, Pawn Shop Management, Community Policing, Records, and Systems Management. 2015 BUDGET 86 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Administration PROGRAM SUMMARY To be recognized as a progressive law enforcement agency, striving to enhance the quality of life for all citizens. We seek to collaborate with all stakeholders to continually improve our community. Hopkins Police Department will recruit, hire, and retain the most qualified personnel to fulfill this vision. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Federal Grants $ 10,512 $ - $ - 0.00% Miscellaneous revenues - - - 0.00% Total Revenues 10,512 - - 0.00% EXPENDITURES: Salaries/Wages/Benefits303,214$ 392,448$ 315,985$ -19.48% Materials, Supplies & Services114,191$ 124,163$ 120,377$ -3.05% $ 417,405 $ 516,611 $ 436,362 NET TAX AND GENERAL -15.53% REVENUE SUPPORTED $ 406,893 $ 516,611 $ 436,362 PERSONNEL: Number of FTE positions2.152.152.15 2015 BUDGET 87 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police –Patrol PROGRAM SUMMARY FY 2014FY 2015 To provide public safety by reducing FY 2014ApprovedApprovedPercent crime, enhancing the quality of life for ActualBudgetBudgetChange all citizens, while working REVENUES: collaboratively with all stakeholders in the community. Licenses $ 9,619 $ 10,000 $ 10,000 0.00% Intergovernmental Revenue 324,346 283,000 204,000 -27.92% MAJOR OBJECTIVES TO BE Fines & Forfeits 72,008 51,000 51,500 0.98% ACCOMPLISHED IN 2015: Charges for Service 13,498 15,000 15,000 0.00% 1. Provide the highest level of Misecllaneous 2,620 1,000 1,000 0.00% professional customer service to $ 422,091 $ 360,000 $ 281,500 -21.81% the public with each and every EXPENDITURES: contact. Salaries/Wages/Benefits $2,596,628 $2,497,847 $2,594,785 3.88% 2. Create trust and partnerships with Materials, Supplies & Services 284,176 282,729 282,415 -0.11% our multi-cultural community. $2,880,804 $2,780,576 $2,877,200 3.47% 3. Provide proactive criminal enforcement through intelligence- NET TAX AND GENERAL lead policing efforts. 7.23% REVENUE SUPPORTED $2,458,713 $2,420,576 $2,595,700 4. Committed to identifying and solving problems through building PERSONNEL: Number of FTE positions23.623.623.6 positive community partnerships PROGRAM: Police – SWAT Team PROGRAM SUMMARY The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Committed to the highest level of training standards and performance standards. 2. Build upon strong working relationships with other consortium SWAT members and partners. 3. Continue to be a leader in the consortium of SWAT teams. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits50,614$ 50,382$ 55,011$ 9.19% Materials, Supplies & Services19,099$ 19,333$ 21,358$ 10.47% $ 69,713 $ 69,715 $ 76,369 NET TAX AND GENERAL REVENUE SUPPORTED $ 69,713 $ 69,715 $ 76,369 9.54% PERSONNEL: Number of FTE positions0.450.450.45 2015 BUDGET 88 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Reserves PROGRAM SUMMARY The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, community-building and outreach efforts. FY 2014FY 2015 MAJOR OBJECTIVES TO BE FY 2014ApprovedApprovedPercent ACCOMPLISHED IN 2015: ActualBudgetBudgetChange 1. Continue to recruit individuals with diverse REVENUES: backgrounds. Charges for service $ - $ - $ - 0.00% 2. Continue to supplement uniformed patrol with calls for service and problem-solving efforts. EXPENDITURES: 3. Provide leadership training for Reserve Salaries/Wages/Benefits6,768$ -0.08%7,156 $ $ 7 ,162 Command Staff. Materials, Supplies & Services$ 6 ,235$ 8 ,424$ 8 ,4730.58% $ 13,003 $ 15,586 $ 15,629 4. Utilize Reserve personnel whenever NET TAX AND GENERAL feasible to alleviate uniformed patrol calls REVENUE SUPPORTED $ 13,003 $ 15,586 $ 15,629 0.28% for service. PERSONNEL: Number of FTE positions0.050.050.05 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 ACCOMPLISHED IN 2015: 1. Continue professional development by training officers in the Investigations Division of the Hopkins Police Department. 2. Continue to problem solve and reduce crime through crime analysis and intelligence-lead policing. 3. Work in partnership with other law enforcement agencies to identify crime trends and patterns on a local and regional level. 4. Continue to work in partnership FY 2014FY 2015 with all divisions within the Police FY 2014ApprovedApprovedPercent Department. ActualBudgetBudgetChange 5. Continue to work in partnership REVENUES: with the County Attorney’s Office Licenses $ 78,412 $ 76,000 $ 76,000 0.00% to successfully prosecute individuals involved in criminal EXPENDITURES: behavior. Salaries/Wages/Benefits $ 462,445 $ 473,022 $ 475,311 0.48% Materials, Supplies & Services 55,667 77,367 87,078 12.55% $ 518,112 $ 550,389 $ 562,389 2.18% NET TAX AND GENERAL 2.53% REVENUE SUPPORTED $ 439,700 $ 474,389 $ 486,389 PERSONNEL: Number of FTE positions3.93.93.9 2015 BUDGET 89 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Southwest Hennepin Drug Task Force PROGRAM SUMMARY The Southwest Hennepin Drug Task Force is a multi-jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance, and other covert activities. FY 2014FY 2015 MAJOR OBJECTIVES TO BE FY 2014ApprovedApprovedPercent BudgetBudgetChange Actual ACCOMPLISHED IN 2015: REVENUES: 1. Continue to work jointly with the Criminal Charges for service $ - $ 15,000 $ - -100.00% Investigations Unit and Focus Unit to identify suspects engaged in criminal EXPENDITURES: activity. Salaries/Wages/Benefits $ 105,006 $ 115,897 $ 114,766 -0.98% 2. Work with all divisions of the Police Materials, Supplies & Services 7,030 6,732 5,534 -17.80% Department and communicate current crime $ 112,036 $ 122,629 $ 120,300 -1.90% trends and/or possible suspects residing in the City. NET TAX AND GENERAL 3. Continue to work nuisance property and REVENUE SUPPORTED $ 112,036 $ 107,629 $ 120,300 11.77% crime free multi-housing issues with the Police Services Liaison to remove problem PERSONNEL: tenants from units who continue to use Number of FTE positions111 illegal drugs. 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Conduct at least one random inventory and compliance check. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses $ 5,000 $ 5,000 $ 5,000 0.00% Charges for service 15,769 18,000 18,000 0.00% $ 20,769 $ 23,000 $ 23,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 3,339 $ 3,386 $ 3,571 5.46% Materials, Supplies & Services 145 144 167 15.97% $ 3,484 $ 3,530 $ 3,738 5.89% NET TAX AND GENERAL -1.07% REVENUE SUPPORTED $ (17,285) $ (19,470) $ (19,262) PERSONNEL: Number of FTE positions0.050.050.05 2015 BUDGET 90 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Crime Prevention Specialist PROGRAM SUMMARY The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs including Neighborhood Watch, National Night Out, Crime-free Multi-housing and classroom instruction of Project Alert. In addition, the Police Services Liaison administers the alarm program, nuisance property program, review and revisions of various ordinances and grant research, application and administration and is the staff liaison to SCIP, One Voice, HBCA, Rental Community Engagement Program and other committees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent BudgetBudgetChange Actual REVENUES: Licenses $ 3,700 $ 5,000 $ 5,000 0.00% Donations 337 500 500 0.00% $ 4,037 $ 5,500 $ 5,500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 74,326 $ 92,726 $ 95,343 2.82% Materials, Supplies & Services 10,627 14,668 14,742 0.50% $ 84,953 $ 107,394 $ 110,085 2.51% NET TAX AND GENERAL REVENUE SUPPORTED $ 80,916 $ 101,894 $ 104,585 2.64% National Night Out PERSONNEL: Number of FTE positions0.850.850.85 New American Academy Cops ‘n Kids Fishing 2015 BUDGET 91 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Support Services PROGRAM SUMMARY This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 develop reports to provide more data to the public. 3. Continue to provide weekly crime FY 2014FY 2015 statistics and learning additional crime FY 2014ApprovedApprovedPercent analysis software and mapping tools ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits236,018$ 261,340$ 251,721$ -3.68% Materials, Supplies & Services4,261 6,223 3.47%6,439 $ 240,279 $ 267,563 $ 258,160 NET TAX AND GENERAL REVENUE SUPPORTED $ 240,279 $ 267,563 $ 258,160 -3.51% PERSONNEL: Number of FTE positions3.453.453.45 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 2015: 1. Work to integrate the police department network with the city’s network. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services46,087$ 49,501$ 51,658$ 4.36% NET TAX AND GENERAL REVENUE SUPPORTED46,087$ 49,501$ 51,658$ 4.36% PERSONNEL: Number of FTE positions000 2015 BUDGET 92 CITY OF HOPKINS FIRE BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Licenses & Permits$5,070$830$1,880$3,500$3,500 State Aid67,16994,84393,48890,00095,0005.56% Federal Grant36,735164,29068,859 - - County Grant - - - - - Administrative Citations -300500 -100 Current Service75,4727,5936,5803,0003,000 Donations7,0001002,400 - - Miscellaneous7,0004,0463,696 - - 198,446272,002177,40396,500101,6005.28% Expenditures Salaries, Wages and Benefits Salaries and Wages385,935401,146391,544368,954373,1321.13% Fringe Benefits147,708189,188189,093188,996194,4402.88% Materials, Supplies and Services Professional & Technical Services28,00238,27137,06324,50024,500 Utilities and Maintenance64,54367,29583,00058,80059,0000.34% Operations66,15259,17868,55263,91064,9251.59% City Support Services103,907124,866135,919139,430155,69511.67% Supplies and Materials149,132219,734159,388100,125102,8452.72% Capital Outlay Equipment3,891 - - - - Total Expenditures949,2691,099,6791,064,559944,715974,5373.16% Indirectly Funded Amount750,823827,676887,157848,215872,9372.91% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 2015 BUDGET 93 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Fire – Fire Department PROGRAM SUMMARY The Fire Department includes Emergency Medical Services (EMS), Fire Prevention/Suppression programs. The EMS program supports the Police Department in managing responses to medical emergencies. The Fire Department responds to all life threatening situations and when there are no police officers available to respond. Fire suppression is the response to all fires, hazardous materials, special hazards and special rescue incidents in the city and fire prevention is the enforcement of the fire code, and the review and inspection of new construction. It also provides for public FY 2014FY 2015 education and files reports with the State Fire Marshall on FY 2014ApprovedApprovedPercent department activity, property ActualBudgetBudgetChange loss or death due to fire REVENUES: emergencies. Licenses & Fines $ 2,380 $ 3,500 $ 3,600 2.86% Intergovernmental Revenue 165,980 90,000 95,000 5.56% MAJOR OBJECTIVES TO BE Charges for Service 6,580 3,000 3,000 0.00% ACCOMPLISHED IN 2015: Donations 2,463 - - 0.00% 1. Develop Long Term $ 177,403 $ 96,500 $ 101,600 5.28% Strategic and Marketing EXPENDITURES: plan for the department. 2. Continue Home Fire Salaries/Wages/Benefits $ 580,637 $ 557,950 $ 567,572 1.72% Prevention Inspection in Materials, Supplies & Services 501,328 395,087 415,287 5.11% accordance with the fire $1,081,965 $ 953,037 $ 982,859 3.13% prevention grant. 3. Work with Police NET TAX AND GENERAL Department and School 2.89% REVENUE SUPPORTED $ 904,562 $ 856,537 $ 881,259 District on the second summer safety camp. PERSONNEL: Number of FTE positions1.251.251.25 Volunteer Firefighters353535 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 2014FY 2015 FY 2014ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ActualBudgetBudgetChange ACCOMPLISHED IN 2015: EXPENDITURES: 1. Prepare Table Top for city staff Materials, Supplies & Services1,285 and Police and Fire Command $ $ 3 ,128$ 3 ,1280.00% staff NET TAX AND GENERAL 2. Establish forms for EOC and REVENUE SUPPORTED$ 1,285$ 3,128 0.00% equip EOC for operations. $ 3 ,128 3. Update Emergency Operations PERSONNEL: Plan. (EOP) Number of FTE positions000 2015 BUDGET 94 CITY OF HOPKINS PUBLIC WORKS BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Licenses and Permits$9,730$18,970$5,435$9,415$9,415 Intergovernmental137,082139,154145,245130,000135,0003.85% Charges for Services3,3435,6739,2832,7502,750 Other Miscellaneous6,2875,6124,7254,6004,600 Sales of Fixed Assets848 - - - - Expenditures Salaries, Wages and Benefits Salaries and Wages2.61% 1,157,874 1,199,562 1,263,676 1,226,018 1,257,985 Fringe Benefits2.72% 445,319 466,575 470,864 477,822 490,803 Materials, Supplies and Services 11.37% Professional & Technical Services 200,950 198,014 236,941 299,100 333,100 Utilities and Maintenance 374,627 420,514 415,450 419,900 419,900 Operations (158)-29.21% 806 4,155 16,430 11,630 City Support Services18.85% 161,888 140,557 159,288 146,889 174,583 Supplies and Materials4.42% 288,873 381,102 393,414 322,185 336,435 Capital Outlay Buildings & Improvements - - - - - Equipment - 11,031 - 11,600 9,500-18.10% Total Expenditures3.90% 2,629,372 2,818,161 2,943,787 2,919,944 3,033,936 Reimbursed Expenditures (545,140) (550,799) ( 531,857) ( 538,000) ( 538,000) Net Total Expenditures4.79% 2,078,574 2,273,021 2,411,930 2,381,944 2,495,936 Indirectly Funded Amount4.88% 1,921,283 2,103,612 2,247,242 2,235,179 2,344,171 The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks, and Forestry. 2015 BUDGET 95 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Buildings PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The public works buildings FY 2014FY 2015 budget covers the entire public works FY 2014ApprovedApprovedPercent complex. The buildings and equipment are BudgetBudgetChange Actual maintained by in house maintenance EXPENDITURES: personnel and the custodial duties by a Salaries/Wages/Benefits $ 38,192 $ 37,222 $ 38,229 2.71% contract cleaner. Materials, Supplies & Services 86,187 66,409 70,943 6.83% Reimbursed Expenditures (70,000) (70,000) (70,000)0.00% MAJOR OBJECTIVES TO BE $ 54,379 $ 33,631 $ 39,172 ACCOMPLISHED IN 2015: NET TAX AND GENERAL 16.48% REVENUE SUPPORTED $ 54,379 $ 33,631 $ 39,172 1. Maintain PW building to assure a safe and comfortable environment for all PERSONNEL: City employees at the lowest cost to Number of FTE positions0.40.40.4 the taxpayer. PROGRAM: Public Works – Equipment Services PROGRAM SUMMARY The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue aggressive maintenance and repair of all city equipment. 2. Purchase riding lawn mower, grass seed applicator (overseeder), and a ¾ ton truck with plow as provided in the City’s Equipment Replacement FY 2014FY 2015 Plan. FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 204 $ 150 $ 150 0.00% EXPENDITURES: Salaries/Wages/Benefits $213,459 $216,072 $227,134 5.12% Materials, Supplies & Services 22,778 20,215 21,819 7.93% Reimbursed Expenditures (136,857) (143,000) (143,000)0.00% Capital Expenditures - 5,600 4,000 0.00% $ 99,380 $ 98,887 $109,953 11.19% NET TAX AND GENERAL REVENUE SUPPORTED $ 99,176 $ 98,737 $109,803 11.21% PERSONNEL: Number of FTE positions2.352.352.35 2015 BUDGET 96 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Administration PROGRAM SUMMARY The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks/Forestry & Streets/Traffic; Water and Sewer Utilities and Solid Waste Management. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Southwest Transitway (LRT) planning: FY 2014FY 2015 protect city interests and position FY 2014ApprovedApprovedPercent Hopkins for Federal funding to mitigate ActualBudgetBudgetChange LRT station impacts EXPENDITURES: 2. Continue to analyze and respond to Salaries/Wages/Benefits $170,754 $171,521 $175,500 2.32% opportunities to save energy and be Materials, Supplies & Services 18,658 17,759 18,423 3.74% more environmentally conscious while Reimbursed Expenditures (148,000) (148,000) (148,000)0.00% improving service quality and $ 41,412 $ 41,280 $ 45,923 efficiency. NET TAX AND GENERAL 3. Complete aggressive 2015 program of REVENUE SUPPORTED $ 41,412 $ 41,280 $ 45,923 11.25% street, utility, municipal building and park system improvements. PERSONNEL: 4. Complete Cottageville Park master Number of FTE positions1.351.351.35 planning work and design of associated storm water drainage improvements PROGRAM: Public Works – Engineering PROGRAM SUMMARY The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as-builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to consultants involved with construction projects. FY 2014FY 2015 MAJOR OBJECTIVES TO BE FY 2014ApprovedApprovedPercent ACCOMPLISHED IN 2015: ActualBudgetBudgetChange 1. Continue to develop utility maps in digitized REVENUES: format and apply to GIS program. Licenses $ 4,070 $ 8,000 $ 8,000 0.00% 2. Continue field survey and inventory of utility Charges for Service 135 100 100 0.00% system for GIS application. $ 4,205 $ 8,100 $ 8,100 0.00% 3. Oversee implementation of the City’s EXPENDITURES: Capital Improvement Plan. Salaries/Wages/Benefits $162,332 $174,475 $175,744 0.73% Materials, Supplies & Services $ 43,455 $ 31,389 $ 33,086 Reimbursed Expenditures (65,000) (65,000) (65,000)0.00% $140,787 $140,864 $143,830 2.11% NET TAX AND GENERAL 2.23% REVENUE SUPPORTED $136,582 $132,764 $135,730 PERSONNEL: Number of FTE positions1.61.61.6 2015 BUDGET 97 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Streets and Alleys PROGRAM SUMMARY The Streets Division of the Public Works Department provides maintenance of 55 miles of streets, 30 miles of alleys and 10 parking lots (including parking ramp) within the City for convenient day-to-day use. Also provides street lighting, traffic signs and signals, sidewalk repair, and special event support. Maintenance includes activities such as sweeping, patching, seal coating and curb repair. Major maintenance is scheduled on a 6 year, maintenance district rotation basis. Routine mill/patching/paving is accomplished throughout the City during the summer season. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses $ 1,365 $ 1,415 $ 1,415 0.00% Intergovernmental Revenue 145,245 130,000 135,000 3.85% Charges for Service 4,061 500 500 0.00% $150,671 $131,915 $136,915 3.79% EXPENDITURES: Salaries/Wages/Benefits $409,185 $369,383 $375,190 1.57% Materials, Supplies & Services $604,547 $655,333 $666,385 1.69% Reimbursed Expenditures (112,000) (112,000) (112,000)0.00% $901,732 $912,716 $929,575 1.85% NET TAX AND GENERAL REVENUE SUPPORTED $751,061 $780,801 $792,660 1.52% PERSONNEL: Number of FTE positions4.064.064.06 2015 BUDGET 98 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Snow & Ice Removal PROGRAM SUMMARY The Snow & Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking lots (including parking ramp) and economic development properties within the city for convenient day-to-day use, and to provide safe travel and parking conditions. FY 2014FY 2015 MAJOR OBJECTIVES TO BE FY 2014ApprovedApprovedPercent ACCOMPLISHED IN 2015: ActualBudgetBudgetChange 1. Complete plowing/sanding REVENUES: operations of all city streets, alleys, Charges for service $ 556 $ 500 $ 500 0.00% parking lots and parking ramp within 10 hours. EXPENDITURES: 2. Complete snow removal operations Salaries/Wages/Benefits $179,409 $130,406 $140,346 7.62% in downtown areas/ramp/parking Materials, Supplies & Services 108,041 75,147 78,669 4.69% lots in efficient manner to meet Capital Outlay - 6,000 - 0.00% parking/traffic flow demands. $287,450 $211,553 $219,015 3.53% 3. Increase snow/ice maintenance activities on residential streets. NET TAX AND GENERAL 4. Utilize snow emergency policy to REVENUE SUPPORTED $286,894 $211,053 $218,515 3.54% maximize safety and snow removal efforts, while minimizing resident PERSONNEL: conflicts. Number of FTE positions1.181.181.18 PROGRAM: Public Works – Park Maintenance & Improvements PROGRAM SUMMARY The Parks division of the Public Works Department provides for the maintenance of developed parks and grounds adjacent to public buildings and right-of-ways, including, seeding, fertilizing and mowing of grass, maintenance of all athletic fields and general playgrounds and maintenance of Shady Oak Beach. Maintenance of Co. Rd 3 median flowers and irrigation is provided. Maintenance of picnic facilities and trails, trash and rubbish removal from parks is also included. Open skating and hockey areas are included. Open skating and hockey areas are provided from December through February for outdoor recreational purposes. FY 2014FY 2015 MAJOR OBJECTIVES TO BE FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange ACCOMPLISHED IN 2015: REVENUES: 1. Continue grounds maintenance of all Charges for service $ 4,059 $ 1,500 $ 1,500 0.00% parks including Shady Oak Beach, plus Miscellaneous 4,725 4,600 4,700 2.17% City Hall, 4 well houses, Public Works $ 8,784 $ 6,100 $ 6,200 1.64% garage and all other City owned right- EXPENDITURES: of-way. Salaries/Wages/Benefits $453,714 $450,767 $461,914 2.47% 2. Provide open skating and hockey at the Materials, Supplies & Services 214,004 248,167 294,520 18.68% following parks: Valley, Harley Capital Outlay - - 5,500 #DIV/0! Hopkins, Oakes, Central, Interlachen, $667,718 $698,934 $761,934 9.01% open skating only at Hilltop and Burnes. NET TAX AND GENERAL 9.08% REVENUE SUPPORTED $658,934 $692,834 $755,734 PERSONNEL: Number of FTE positions5.245.245.24 2015 BUDGET 99 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Forestry PROGRAM SUMMARY The Forestry Division of the Public Works Department provides for the maintenance of all trees. Through the utilization of arboricultural practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2015 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 267 $ - $ - 0.00% EXPENDITURES: Salaries/Wages/Benefits107,495$ 153,997$ 154,731$ 0.48% Materials, Supplies & Services117,271$ 98,285$ 99,803$ 1.54% $224,766 $252,282 $254,534 NET TAX AND GENERAL REVENUE SUPPORTED $224,499 $252,282 $254,534 0.89% PERSONNEL: Number of FTE positions1.911.911.91 Tree trimming by staff Trees damaged by disease and marked for removal. 2015 BUDGET 100 CITY OF HOPKINS RECREATION BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Expenditures Salaries, Wages and Benefits Salaries and Wages34,30636,77156,32070,37360,971-13.36% Fringe Benefits4,5555,0587,5326,9616,075-12.73% Materials, Supplies and Services Operations153,768157,347158,543162,622164,5091.16% Supplies and Materials235 -350600300-50.00% Capital Outlay Improvements Other than Bldg - - - - - Transfer Out - - - - - Total Expenditures192,864199,176222,745240,556231,855-3.62% Indirectly Funded Amount192,864199,176222,745240,556231,855-3.62% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 2015 BUDGET 101 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Playgrounds PROGRAM SUMMARY The popular summer playground program is provided to children at 11 locations throughout the cities of Hopkins and Minnetonka. Activities include outdoor games, arts and crafts, a tiny tots program, and a summer adventure club. The summer concludes with a carnival attended by children from all the playground sites. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits31,044 $ $ 2 1,992$ 2 1,676-1.44% NET TAX AND GENERAL REVENUE SUPPORTED31,044$-1.44% $ 2 1,992$ 2 1,676 PERSONNEL: Number of Part-time positions222222 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 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits9,526 $ $ 1 5,295$ 1 4,395-5.88% NET TAX AND GENERAL REVENUE SUPPORTED9,526-5.88% $ $ 1 5,295$ 1 4,395 PERSONNEL: Number of Part-time positions303030 2015 BUDGET 102 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Park Service PROGRAM SUMMARY The Recreation Department hires and trains attendants to supervise park services at 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 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits18,229$ -30.28% $ $ 3 6,97525,780 NET TAX AND GENERAL -30.28% REVENUE SUPPORTED18,229$ $ $ 3 6,97525,780 PERSONNEL: Number of Part-time positions888 PROGRAM: Recreation – Joint Recreation PROGRAM SUMMARY Programs for all ages are provided through the Joint Recreation division. Youth classes are offered in over 15 areas of interest including tennis, golf, swimming, ball skills, and arts & crafts. Youth sports leagues are offered in basketball and soccer. Adult classes are offered in several areas of interest, and team sports are offered in soccer, softball, basketball, volleyball, hockey, broomball and football. In addition, the joint recreation division oversees the operation of Shady Oak Beach, attended by over 40,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Implement a new recreation management software to improve customer service. 2. Implement the newly established closing policy for Shady Oak Beach. 3. Continue to develop partnerships in order to expand youth programming opportunities. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services156,509$ 158,900$ 162,000$ 1.95% NET TAX AND GENERAL 1.95% REVENUE SUPPORTED156,509$ 158,900$ 162,000$ PERSONNEL: Number of Part-time positions909090 2015 BUDGET 103 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Overpass Skate Park PROGRAM SUMMARY The Overpass program provides skate boarders, bikers, and inline skate athletes, 10 years of age or older, with a safe, fun, and challenging place to gather and practice their sport. The Overpass creates a healthy recreational opportunity primarily for youth, and young adults. The Overpass is a seasonal operation, and one of only a few tier II aggressive skate parks in the state of Minnesota. This unique park attracts a regional population in addition to serving the residents of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits5,053$ 5,072$ 5,195$ 2.43% Materials, Supplies & Services2,384$ 2,322 $ $ 2,80920.97% $ 7,437 $ 7,394 $ 8,004 NET TAX AND GENERAL 8.25% REVENUE SUPPORTED $ 7,437 $ 7,394 $ 8,004 PERSONNEL: Number of FTE positions0.050.050.05 2015 BUDGET 104 CITY OF HOPKINS ACTIVITY CENTER BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Charges for Services$67,196$76,154$95,338$60,000$62,0003.33% Contributions6,0083,4045,3256,0004,000-33.33% Total Revenues73,20579,558100,66366,00066,000 Expenditures Salaries, Wages and Benefits Salaries and Wages178,670197,852177,001174,924179,4902.61% Fringe Benefits46,14270,74365,21466,76767,5951.24% Materials, Supplies and Services Professional & Technical Services36,38931,46952,45932,70032,700 Utilities and Maintenance30,91933,68130,26729,25030,7505.13% Operations11,28411,75810,04511,90011,675-1.89% City Support Services11,26112,27513,3579,34711,15019.29% Supplies and Materials16,81818,85313,48620,11023,57017.21% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Other Equipment - -2 - - Total Expenditures331,482376,631361,831344,998356,9303.46% Indirectly Funded Amount258,278297,073261,168278,998290,9304.28% The Activity Center Department is made up of two programs. They are Community Use and Facility Maintenance. 2015 BUDGET 105 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Activity Center – Programming PROGRAM SUMMARY The Activity Center Community Use program of the Public Works Department provides a facility for residents to use for active or passive activities. Staff coordinates all users of the Activity Center. The Hopkins Activity Center also implements and coordinates the FY 2014FY 2015 Seasoned Adult Program, which is FY 2014ApprovedApprovedPercent geared towards the over 50 Hopkins ActualBudgetBudgetChange population. REVENUES: Rent $ 25,551 $ 26,000 $ 26,000 0.00% MAJOR OBJECTIVES TO BE Charges for Service 57,629 25,000 25,000 0.00% ACCOMPLISHED IN 2015: Miscellaneous 21,083 18,500 19,500 5.41% 1. Market the Hopkins Activity $104,263 $ 69,500 $ 70,500 1.44% Center to the over 50 Hopkins population. EXPENDITURES: 2. Develop partnerships with Salaries/Wages/Benefits $223,325 $223,062 $227,971 2.20% businesses, civic organizations, Materials, Supplies & Services 79,104 65,735 70,388 7.08% school district and faith $302,429 $288,797 $298,359 3.31% community. 3. Work with the Hopkins festivals NET TAX AND GENERAL and special events committees 3.90% REVENUE SUPPORTED $198,166 $219,297 $227,859 to promote events for the over 50 population. PERSONNEL: Number of FTE positions3.03.03.0 PROGRAM: Activity Center – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the Maintenance and repair of all City Buildings. The Activity Center maintenance Budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this Building. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Upgrade kitchen to bring it back to commercial use standards FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits18,890$ 18,629 $ $ 1 9,1142.60% Materials, Supplies & Services41,484$ 37,647 $ $ 4 0,2326.87% $ 60,374 $ 56,276 $ 59,346 NET TAX AND GENERAL 5.46% REVENUE SUPPORTED $ 60,374 $ 56,276 $ 59,346 PERSONNEL: Number of FTE positions0.20.20.2 2015 BUDGET 106 CITY OF HOPKINS PLANNING BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Permits and Licenses$ 1,005$ 1,970$ 1,450$ 1,000$ 1,000 Charges for Services6,9332,6003,2002,0002,000 Total Revenues7,9384,5704,6503,0003,000 Expenditures Salaries, Wages and Benefits Salaries and Wages93,43696,52497,93799,717103,0903.38% Fringe Benefits33,86837,73334,90036,48035,792-1.89% Materials, Supplies and Services Professional & Technical Services1002,9073722,2502,250 Utilities and Maintenance26113558640045012.50% Operations7,4088,1507,71710,73510,735 City Support Services67772575173984514.34% Supplies and Materials1,9512,4741,6031,8702,0006.95% Total Expenditures137,702148,648143,865152,191155,1621.95% Reimbursed Expenditures - - (20,000) (20,000) (20,000) Net Total Expenditures137,702148,648123,865132,191135,1622.25% Indirectly Funded Amount129,764144,078119,215129,191132,1622.30% The Planning and Zoning Department is made up of thee programs. They are Zoning, Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 2015 BUDGET 107 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Planning & Community Development – Zoning Activities, Planning & Enforcement PROGRAM SUMMARY The Zoning Activities & Enforcement Program of the Planning & Economic Development Department provides administration and enforcement of locally approved Zoning Ordinance and Comprehensive Plan. Provides administration and inspection of signs and fences and prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue to examine if properties should be re-zoned to Mixed-Use 2. Research and develop a policy to ensure that new developments have a bike and pedestrian-friendly design 3. Process sign & fence permit requests in a timely and expedient manner 4. Provide staff assistance to Planning Commission FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses & Permits $ 4,650 $ 3,000 $ 3,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $132,836 $136,197 $138,882 1.97% Materials, Supplies & Services 11,029 15,994 16,280 1.79% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $123,865 $132,191 $135,162 NET TAX AND GENERAL 2.30% REVENUE SUPPORTED $119,215 $129,191 $132,162 PERSONNEL: Number of FTE positions1.351.351.35 2015 BUDGET 108 CITY OF HOPKINS COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues 3.57% Miscellaneous$ -$ -$ -$ 8 8,300$ 9 1,450 Expenditures Salaries, Wages and Benefits Salaries and Wages5.50% 5 8,826 6 4,902 5 9,732 6 0,410 6 3,732 Fringe Benefits-1.06% 2 2,564 1 2,982 2 1,577 2 2,565 2 2,325 Materials, Supplies and Services Professional & Technical Services 4 2 4 5 3 ,232 6 00 6 00 Operations1.90% 2 32 1 ,736 7 94 2 ,625 2 ,675 City Support Services5.54% 1 ,033 1 ,173 1 ,242 1 ,210 1 ,277 Supplies and Materials 9 17 8 21 4 57 8 40 8 40 Total Expenditures3.62% 8 3,614 8 1,658 8 7,034 8 8,250 9 1,449 Indirectly Funded Amount $ 8 3,614$ 8 1,658$ 8 7,034$ (50)$ (1)-98.00% The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. 2015 BUDGET 109 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Development PROGRAM SUMMARY Promotion and development of housing programs and activities for City property owners and residents. Staff st Time Home Buyer Mortgage Program, Image Awards, Housing support of housing programs such as 1 Improvement Areas and Livable Communities Program. Assist in implementation of the Engaging Raspberry Renters project. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Miscellaneous $ 87,034 $ 88,300 $ 91,450 3.57% EXPENDITURES: Salaries/Wages/Benefits $ 81,309 $ 82,975 $ 86,057 3.71% Materials, Supplies & Services 5,725 5,275 5,392 2.22% $ 87,034 $ 88,250 $ 91,449 NET TAX AND GENERAL -98.00% REVENUE SUPPORTED $ - $ (50) $ (1) PERSONNEL: Number of FTE positions0.850.850.85 2015 BUDGET 110 CITY OF HOPKINS STATE CHEMICAL ASSESSMENT BUDGET Revenues and Expenditures Projected Special Revenue Fund 204 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Intergovernmental $ 40,615 $ 61,443$ 59,882$ 45,000$ 45,000 Refunds & Reimbursements 4,091 10,309 4,067 - - -- Total Revenues 44,706 71,752 63,949 45,000 45,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 30,181 33,643 23,547 37,171 37,171 Materials, Supplies and Services Professional & Technical Services 2,360 2,354 1,980 2,000 2,000 Utilities and Maintenance 3,073 - 4,892 - - -- Operations 23,571 20,935 16,214 - - -- City Support Services2.67% 3,912 2,922 2,800 3,526 3,620 Supplies and Materials 15,649 11,917 25,878 2,303 2,209-4.08% Capital Outlay Computers - - - - - Other Equipment - - - - - -- Total Expenditures 78,746 71,771 75,313 45,000 45,000 Excess (deficiency) of revenue over expenditures (34,040) (19) ( 11,364) (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. 2015 BUDGET 111 CITY OF HOPKINS FUND 203 – CHEMICAL ASSESSMENT TEAM FUND PROGRAM: State Chemical Assessment Team PROGRAM SUMMARY The State Chemical Assessment Team program provides emergency response for assessment of chemical hazards for the State of Minnesota and maintenance of state owned equipment for emergency response and training of personnel. Responding as requested by the State Duty Officer to the counties of Hennepin, Scott, Carver, McLeod and Renville. The State of Minnesota will reimburse the City for up to $45,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental Revenue $ 63,949 $ 45,000 $ 45,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 23,547 $ 37,171 $ 37,171 0.00% Materials, Supplies & Services 51,765 7,829 7,829 0.00% $ 75,312 $ 45,000 $ 45,000 NET TAX AND GENERAL -- REVENUE SUPPORTED $ 11,363 $ - $ - PERSONNEL: Number of FTE positions000 2015 BUDGET 112 CITY OF HOPKINS ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Special Revenue Fund 205 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Property Taxes-49.06% $ 173,009$ 399,706$ 535,083$ 273,980$ 272,572 Intergovernmental 424,264 7,500 49,995 - - Interest earnings 27,838 18,080 44,883 2,000 4,000-91.09% Charges for services Miscellaneous-44.57% 421,274 31,119 20,747 11,500 11,500 Total Revenues 1,046,385 456,406 650,707 287,480 288,072 Expenditures Salaries, Wages and Benefits Salaries and Wages5.83% 122,612 125,379 135,817 126,906 134,299 Fringe Benefits-2.63% 52,092 46,077 42,980 44,891 43,712 Materials, Supplies and Services 28.38% Professional & Technical Services 83,060 66,416 26,765 52,850 67,850 Utilities and Maintenance1.74% 833 1,029 772 1,150 1,170 Operations16.67% 11,748 10,412 108,431 6,000 7,000 City Support Services-3.47% 30,482 26,475 25,806 25,791 24,897 Supplies and Materials 1,827 1,417 955 1,900 1,900 Capital Outla y Land Acquisition - - - - - Other Improvements - - - - - Total Expenditures8.22% 302,655 277,205 341,524 259,488 280,828 Reimbursed Expenditures (40,000) (40,000) (40,000) (40,000) (40,000) Net Total Expenditures9.72% 262,655 237,205 301,524 219,488 240,828 Operating Transfer In (Out) (61,000) (61,000) (61,000) (61,000) --100.00% Excess (deficiency) of Revenues over Expenditures575.69% 722,731 158,201 288,183 6,992 47,244 The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 2015 BUDGET 113 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Project Development and Coordination PROGRAM SUMMARY FY 2014FY 2015 Undertake development activities not FY 2014ApprovedApprovedPercent directly funded by specific project budgets. ActualBudgetBudgetChange Meet with developers, property owners REVENUES: Property Taxes $ 535,083 $ 273,980 $ 272,572 -0.51% and business tenants to review possible Intergovernmental Revenue 49,995 - redevelopment/development activities. Interest 44,883 2,000 4,000 100.00% Recruit desirable businesses to locate in Miscellaneous 20,505 11,000 11,000 0.00% Hopkins. Explore developer incentives $ 650,466 $ 286,980 $ 287,572 0.21% aimed at promoting sustainability and EXPENDITURES: active living. Salaries/Wages/Benefits $ 68,106 $ 68,512 $ 71,125 3.81% Materials, Supplies & Services 126,953 32,486 33,217 MAJOR OBJECTIVES TO BE Transfer Out 61,000 61,000 - -100.00% ACCOMPLISHED IN 2015: $ 256,059 $ 161,998 $ 104,342 -35.59% 1. Monitor income/expenditure of Economic Development fund. NET TAX AND GENERAL 2. Prepare program budget. 46.61% REVENUE SUPPORTED $(394,407) $(124,982) $(183,230) 3. Facilitate redevelopment projects as PERSONNEL: directed by the City Council. Number of FTE positions0.650.650.65 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 2015: 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. FY 2014FY 2015 FY 2014ApprovedApprovedPercent BudgetBudgetChange Actual EXPENDITURES: Salaries/Wages/Benefits $ 56,846 $ 56,107 $ 58,555 4.36% Materials, Supplies & Services 11,637 11,492 11,214 -2.42% Reimbursed Expenditures (40,000) (40,000) (40,000)0.00% $ 28,483 $ 27,599 $ 29,769 NET TAX AND GENERAL REVENUE SUPPORTED $ 28,483 $ 27,599 $ 29,769 7.86% PERSONNEL: Number of FTE positions0.50.50.5 2015 BUDGET 114 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Community Development Activity PROGRAM SUMMARY Promote the City of Hopkins by building on assets, including the small town feel, walkability and Hopkins as a destination. Explore ways to enhance the sense of place through public art and directional signage. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Work towards the Council-approved goals and objectives. 2. Continue liaison role for City between both HBCA and Twin West Chamber. 3. Work with Marketing Task Force to implement FY 2014FY 2015 year four of the Think Hopkins marketing plan. FY 2014ApprovedApprovedPercent 4. Facilitate year three of Hopkins Artstreet. ActualBudgetBudgetChange REVENUES: Interest $ - $ - $ - #DIV/0! Miscellaneous 242 500 500 0.00% $ 242 $ 500 $ 500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 53,845 $ 47,178 $ 48,331 2.44% Materials, Supplies & Services 23,778 23,713 23,386 -1.38% $ 77,623 $ 70,891 $ 71,717 1.17% NET TAX AND GENERAL 1.17% REVENUE SUPPORTED $ 77,381 $ 70,391 $ 71,217 PERSONNEL: Number of FTE positions0.250.450.45 th PROGRAM: 8 Avenue Development PROGRAM SUMMARY thth and Excelsior, the City of Hopkins will work towards transforming 8 In preparation for the SW LRT station at 8 Avenue in to a gateway to the downtown through redevelopment of existing property and the redesign of the roadway. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Facilitate a redevelopment project on the former Park Nicollet clinic site. th 2. Begin the design process for the 8 Avenue streetscape project. 3. Work with the developer to complete the redevelopment of the Johnson Building property. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Interest $ - $ - $ - #DIV/0! Miscellaneous 242 500 500 0.00% $ 242 $ 500 $ 500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 53,845 $ 47,178 $ 48,331 2.44% Materials, Supplies & Services 23,778 23,713 23,386 -1.38% $ 77,623 $ 70,891 $ 71,717 1.17% NET TAX AND GENERAL REVENUE SUPPORTED $ 77,381 $ 70,391 $ 71,217 1.17% PERSONNEL: Number of FTE positions0.250.450.45 2015 BUDGET 115 CITY OF HOPKINS REAL ESTATE PURCHASES AND SALES BUDGET Revenues and Expenditures Special Revenue Fund 206 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Miscellaneous$3,700$7,400$3,700$3,700$ --100.00% Interest601(328)1,432500 --100.00% Total Revenues4,3017,0725,1324,200 - Expenditures Materials, Supplies and Services Professional & Technical Services - - - - - Transfers Out - - - -124,500 Capital Outlay Land Purchases - - - - - Total Expenditures - - - -124,500 Net Revenues$4,301$7,072$5,132$4,200$(124,500)-3064.29% The Rreal Estate Purchases and Sales Fund records acquisitions and dsposition of property with the proceeds used to improve city buildings. 2015 BUDGET 116 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 2015: 1. Use available funds to purchase historical building in downtown Hopkins for use by the Hopkins Historical Society. 2. Increase exposure of Historical Society to citizens of Hopkins and visitors. FY 2014FY 2015 FY 2014ApprovedApprovedPercent BudgetBudgetChange Actual REVENUES: Interest $ 1,432 $ 500 $ - -100.00% License & Permits 3,700 3,700 - -100.00% $ 5,132 $ 4,200 $ - -100.00% EXPENDITURES: Land Purchase $ - $ - $ 124,500 -- NET TAX AND GENERAL -3064.29% REVENUE SUPPORTED $ (5,132) $ (4,200) $ 124,500 PERSONNEL: Number of FTE positions000 Albert Pike Lodge located in downtown Hopkins is a historical building that will be purchased by the City in 2015. The Hopkins Historical Society will move into the building. This downtown location will provide greater visibility to the Historical Society and make them more accessible to the public. 2015 BUDGET 117 CITY OF HOPKINS TIF DISTRICT 1-2 BUDGET Revenues and Expenditures Special Revenue Fund 212 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Tax Increment $ 58,172$ 58,172$ 5 8,173$ 58,000$ 58,000 Interest 186 (211) 1 ,124 100 100 Transfers In - - - - - Expenditures Materials, Supplies and Services Professional & Technical Services 463 595 5 99 1,000 1,000 Operations 14,594 13,880 1 3,155 2,000 2,000 Total Expenditures 15,057 14,475 1 3,754 3,000 3,000 Transfers out for debt - - - - - Total Expenditures 15,057 14,475 1 3,754 3,000 3,000 Excess (deficiency) of Revenues over Expenditures 43,301 43,486 4 5,543 55,100 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. 2015 BUDGET 118 CITY OF HOPKINS FUND 211 – TAX INCREMENT DISTRICT 2-1 FUND PROGRAM: Redevelopment within Central Business District PROGRAM SUMMARY Redevelopment activity of property in the Central Business District (CBD), north and south of Mainstreet between thth and 12 Avenues. 11 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 58,173 $ 58,000 $ 58,000 0.00% Interest 1,124 100 100 0.00% $ 59,297 $ 58,100 $ 58,100 0.00% EXPENDITURES: Materials, Supplies & Services $ 13,754 $ 3,000 $ 3,000 0.00% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $ (45,543) $ (55,100) $ (55,100) PERSONNEL: Number of FTE positions000 2015 BUDGET 119 CITY OF HOPKINS PARKING BUDGET Revenues and Expenditures Special Revenue Fund 215 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues $17,474 $22,000 $22,000 Court Fines$ 2 2,420$22,207 70,16787,29173,0001.37% Leased Parking 7 4,884 74,000 Interest Earned 7 88 (644) 2 ,169 1,000 5 00-50.00% Total Revenues 106,93496,00091,729 96,5000.52% 9 8,092 Expenditures Salaries, Wages and Benefits Salaries and Wages38,94838,73741,5232.81% 3 8,125 42,690 Fringe Benefits3.28% 6 ,670 5,664 6 ,168 7,135 7,369 Materials, Supplies and Services 40,73515,893 3,70012.16% Professional & Technical Services 3 ,942 4,150 Utilities and Maintenance25,11421,21318,28014,780-19.15% 1 8,412 Operations 6 96 8 58 325 7 50 7 50 City Support Services18,79320,79617,9316.60% 1 9,090 19,115 Supplies and Materials-15.27% 5 ,430 9,120 3 ,523 6,550 5,550 Capital Outlay Other Improvements 2 6,055 - - -45,000 Total Expenditures118,419139,232106,65595,869 139,404 45.41% Excess (deficiency) of Revenues over Expenditures(20,327)(47,502) 279 -32851.15% 1 31(42,904) 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. 2015 BUDGET 120 CITY OF HOPKINS FUND 214 – PARKING FUND PROGRAM: Parking Enforcement PROGRAM SUMMARY Manage and enforce parking rules and FY 2014FY 2015 regulations. Ensure that parking is available FY 2014ApprovedApprovedPercent for customers and parking rules are followed. ActualBudgetBudgetChange REVENUES: MAJOR OBJECTIVES TO BE Fines & Forfeits $ 17,474 $ 22,000 $ 22,000 0.00% ACCOMPLISHED IN 2015: 1. Monitor the effects of current parking EXPENDITURES: Salaries/Wages/Benefits $ 44,224 $ 45,162 $ 46,607 3.20% enforcement efforts and recommend Materials, Supplies & Services 14,501 16,033 15,943 -0.56% changes as needed. $ 58,725 $ 61,195 $ 62,550 2. Continue to accurately account for fine NET TAX AND GENERAL revenues that result from parking 3.46% REVENUE SUPPORTED $ 41,251 $ 39,195 $ 40,550 enforcement. PERSONNEL: Number of FTE positions0.720.720.72 PROGRAM: Parking Operations PROGRAM SUMMARY Implement and manage parking recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Update parking brochure. 2. Promote marketing plan for permit parking and municipal ramp. 3. Review funding options for future maintenance of public lots. 4. Maintain and improve public parking lots as needed. 5. Work with Public Works Department to complete analysis of public parking lots FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Leases $ 87,291 $ 73,000 $ 74,000 1.37% Interest 2,169 1,000 500 -50.00% $ 89,460 $ 74,000 $ 74,500 0.68% EXPENDITURES: Salaries/Wages/Benefits $ 681 $ 3,496 $ 3,452 -1.26% Materials, Supplies & Services 1,669 1,345 1,740 29.37% $ 2,350 $ 4,841 $ 5,192 7.25% NET TAX AND GENERAL 0.22% REVENUE SUPPORTED $ (87,110) $ (69,159) $ (69,308) PERSONNEL: Number of FTE positions0.010.010.01 2015 BUDGET 121 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 2015: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services 45,580 29,833 26,662 -10.63% Capital Expenditures - - 45,000 -- $ 45,580 $ 29,833 $ 71,662 NET TAX AND GENERAL 140.21% REVENUE SUPPORTED $ 45,580 $ 29,833 $ 71,662 PERSONNEL: Number of FTE positions000 2015 BUDGET 122 CITY OF HOPKINS COMMUNICATIONS BUDGET Revenues and Expenditures Special Revenue Fund 218 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues $261,104 $235,000 $248,000 5.53% Franchise Fees$ 2 31,472$252,707 Interest Earned 1,469 (932) 4 ,845 1,500 2,00033.33% Total Revenue251,775265,949236,500250,000 5.71% 232,941 Expenditures Salaries, Wages and Benefits Salaries and Wages 25,154 25,567 3 1,061 26,279 59,519126.49% Fringe Benefits71.03% 7,907 7,651 8 ,070 8,121 13,889 Materials, Supplies and Services Professional & Technical Services 33,234 54,026 3 1,722 38,005 8,650-77.24% Utilities and Maintenance 13,338 4,891 5 11 4,650 2,650-43.01% Operations 18,409 21,282 1 7,388 21,750 21,750 City Support Services-8.71% 14,885 12,902 1 3,136 13,129 11,986 Supplies and Materials 2,046 1,057 4 80 600 90050.00% Capital Outla y Office Furniture and Equipment 52,236 - - 9,500 35,000268.42% Transfer Out 86,92086,920 86,92086,920 86,920 Total Expenditures214,297189,288208,954241,264 15.46% 254,130 Excess (deficiency) of Revenues over Expenditures (21,189) 37,477 7 6,661 27,546 8,736-68.29% The Communication Fund (formerly known as the Cable fund) records the City's share of a five city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. 2015 BUDGET 123 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Communication and Cable Liaison PROGRAM SUMMARY FY 2014FY 2015 Provide two-way communication between the FY 2014ApprovedApprovedPercent City and its residents, employees and ActualBudgetBudgetChange businesses; its civic, service, and fraternal REVENUES: organizations; and other communities and Franchise Fees $ 261,104 $235,000 $248,000 5.53% government agencies. Written, verbal and Interest 4,845 1,500 2,000 33.33% visual communication tools. $ 265,949 $236,500 $250,000 5.71% EXPENDITURES: MAJOR OBJECTIVES TO BE Salaries/Wages/Benefits $ 39,132 $ 34,400 $ 73,408 113.40% ACCOMPLISHED IN 2015: Materials, Supplies & Services 24,956 28,496 29,377 3.09% City Goal 3, Strategy 4: Citizen Engagement Capital Expenditures - 9,500 35,000 268.42% Initiatives: Transfer Out 86,920 86,920 86,920 0.00% $ 151,008 $159,316 $224,705 41.04% 1. Continue to expand e-newsletter and Facebook. NET TAX AND GENERAL 2. Send out weekly e-Newsletter, Hopkins -67.23% REVENUE SUPPORTED $(114,941) $ (77,184) $ (25,295) Connections, to listserv members. PERSONNEL: Number of FTE positions0.250.250.25 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 2015: 1. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. 2. Increase newsletter distribution to rental properties. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: $ 15,055$ -2.34% Materials, Supplies & Services$ 1 3,84915,415 NET TAX AND GENERAL REVENUE SUPPORTED13,849$ 15,415$ 15,055$-2.34% PERSONNEL: Number of FTE positions000 2015 BUDGET 124 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Web and Messaging PROGRAM SUMMARY Provide communication for the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies through a web site. Also maintain the “Ask the City” line. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: City Goal 1, Strategy 3: Provide Accessible and Friendly City Services: 1. Increase interactivity on web site through one or more of the following: Ability to make payments via the web Customer Response system Ability to fill out forms on the website FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services $ 28,062 $ 34,223 $ 4,504 -86.84% NET TAX AND GENERAL REVENUE SUPPORTED28,062$ 4,504-86.84% $ $ 3 4,223 PERSONNEL: Number of FTE positions000 2015 BUDGET 125 CITY OF HOPKINS DEPOT BUDGET Revenues and Exenditure ps Special Revenue Fund 219 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Intergovernmental$ 6,000$ 15,000$ 22,500$ 15,000$ 15,000 -2.78% Leases and Rentals 72,205 74,847 71,079 72,000 70,000 2.40% Concessions & Merchandise Sales 175,298 224,341 246,114 222,650 228,000 Donations & Contributions 1,345 633 1,809 15,000 2,000-86.67% Private Foundation Grants - - - 5,000 3,000 Interest 75 (49) 10 - - Miscellaneous 15,380 15,390 15,150 15,000 15,000 Transfer In 10,000 10,000 10,000 10,000 10,000 Total Revenues340,161 -3.28% 280,311 366,662 354,650343,000 Expenditures Salaries, Wages and Benefits Salaries and Wages-6.83% 130,329 168,370 180,893 155,789 145,150 Fringe Benefits10.27% 33,540 52,692 52,743 48,671 53,670 Materials, Supplies and Services Professional & Technical Services 8,458 11,008 11,465 7,400 9,00021.62% Utilities and Maintenance7.51% 13,957 12,865 11,997 9,860 10,600 Operations27.23% 7,830 6,633 4,169 9,805 12,475 City Support Services 2,634 2,557 4,386 2,831 5,24485.23% Supplies and Materials-16.98% 84,864 101,830 105,526 117,100 97,220 Capital Outlay Improvements3,000 3,637 2,795 2,386 --100.00% Total Expenditures-5.95% 285,247 358,750 373,566 354,456 333,359 Excess (deficiency) of Revenues over expenditures (4,936) (18,589) (6,905) 194 9,6414869.59% The Depot Coffee House Fund accounts for the operations of the Youth Center, a chemical free environment for area teens to socialize and the operations of the Coffee House which provides a service to the Youth and those on the regional trail system. 2015 BUDGET 126 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 2015: 1. Sustain welcoming and chemical free venue for community youth and other gatherings. 2. Continue staffing 2 – 3 night a week year -round youth events programming at the Depot. 3. Support additional youth-initiated projects. 4. Provide learning lab for Business/Marketing classes at Hopkins High School. 5. Promote partnerships with the Depot in the community, with area students, and youth allies. 6. Create new youth learning opportunities with Coffee Operations staff. 7. Provide workplace training and employment opportunities for youth. 8. Continue capital upgrades with furnishings FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental $ 87,500 $ 65,000 $ 80,000 23.08% Charges for Service 9,908 10,000 10,000 0.00% Foundation/Corporate Grants - 5,000 3,000 -40.00% Miscellaneous 20,534 37,500 20,000 -46.67% Tranfer In 10,000 10,000 10,000 0.00% $127,942 $127,500 $123,000 -3.53% EXPENDITURES: Salaries/Wages/Benefits $ 93,036 $ 94,444 $ 80,143 -15.14% Materials, Supplies & Services 27,237 29,866 34,906 16.88% Capital Expenditures 2,386 3,000 - -100.00% $122,659 $127,310 $115,049 -9.63% NET TAX AND GENERAL REVENUE SUPPORTED $ (5,283) $ (190) $ (7,951)4084.74% PERSONNEL: Number of FTE positions1.51.51.0 2015 BUDGET 127 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 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for Service $238,720 $227,150 $220,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $140,600 $110,016 $118,677 0.00% Materials, Supplies & Services 110,307 117,130 99,633 0.00% $250,907 $227,146 $218,310 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 12,187 $ (4) $ (1,690)0.00% PERSONNEL: Number of FTE positions111 2015 BUDGET 128 CITY OF HOPKINS TIF DISTRICT 2-6 BUDGET Revenues and Expenditures Special Revenue Fund 228 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues 26.32% Tax Increment$ 9,834$ 12,587$ 1 2,587$ 9,500$ 12,000 Interest 81 (49) 8 100 100 Miscellaneous 9,640 6,437 6 ,437 9,524 7,024-26.25% Transfers In 24,315 26,204 2 5,302 24,654 21,870 Total Revenues-6.36% 43,870 45,180 4 4,334 43,778 40,994 Expenditures Materials, Supplies and Services Professional & Technical Services 410 471 5 23 470 55017.02% Operations 1,000 1,800 1 ,500 1,500 1,500 Interest Expense 9,355 9,694 8 ,302 9,694 6,910-28.72% Total Expenditures 10,765 11,965 1 0,325 11,664 8,960-23.18% Transfers out for debt - - - - - Total Expenditures 10,765 11,965 1 0,325 11,664 8,960-23.18% -0.25% Excess of Revenues over Expenditures 33,105 33,214 3 4,009 32,114 32,034 The Tax Increment 2-6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 2015 BUDGET 129 CITY OF HOPKINS FUND 226 – TAX INCREMENT 2-6 FUND PROGRAM: SonomaHandicap Housing Project PROGRAM SUMMARY th Avenue and Excelsior Boulevard. Coordinate redevelopment of northwest corner of 5 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 12,587 $ 9,500 $ 12,000 26.32% Miscellaneous $ 6,437 $ 9,524 $ 7,024 Interest 8 100 100 0.00% Tranfer In 25,302 24,654 21,870 -11.29% $ 44,334 $ 43,778 $ 40,994 -6.36% EXPENDITURES: Materials, Supplies & Services $ 10,325 $ 11,664 $ 8,960 -23.18% NET TAX AND GENERAL -0.25% REVENUE SUPPORTED $ (34,009) $ (32,114) $ (32,034) PERSONNEL: Number of FTE positions000 2015 BUDGET 130 CITY OF HOPKINS TIF DISTRICT 2-9 BUDGET Revenues and Expenditures Special Revenue Fund 230 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Tax Increment$133,034$133,980$119,630$140,000$120,000-14.29% Intergovernmental - Mkt Value Credit192 - - - - 5,2931,2001,200 Interest1,613 (1,273) Transfers In - - - - - Total Revenues134,838132,707124,923141,200121,200-14.16% Expenditures Materials, Supplies and Services Professional & Technical Services7841,1941,7691,5001,200-20.00% Operations3,6362,9712,6272,6272,621-0.23% Transfers out for debt118,000117,000116,000116,00036,000-68.97% Total Expenditures122,420121,165120,396120,12739,821-66.85% Excess (deficiency) of Revenues over Expenditures 12,419 11,542 4,526 2 1,073 81,379286.18% 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. 2015 BUDGET 131 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 2015: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $119,630 $140,000 $120,000 -14.29% Intergovernmental $ - $ - $ - 0.00% Interest 5,293 1,200 1,200 0.00% $124,923 $141,200 $121,200 -14.16% EXPENDITURES: Materials, Supplies & Services $ 4,396 $ 4,127 $ 3,821 -7.41% Transfer Out 116,000 116,000 36,000 -68.97% $120,396 $120,127 $ 39,821 -66.85% NET TAX AND GENERAL 286.18% REVENUE SUPPORTED $ (4,527) $ (21,073) $ (81,379) PERSONNEL: Number of FTE positions000 2015 BUDGET 132 CITY OF HOPKINS TIF DISTRICT 2-11 BUDGET Revenues and Expenditures Special Revenue Fund 231 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Tax Increment$2,132,273$1,794,734$2,403,449$1,307,000$2,400,00083.63% Interest12,3473,0003,000 5,397 (4,980) Miscellaneous - - - - - Total Revenues2,137,6711,789,7542,415,7961,310,0002,403,00083.44% Expenditures Materials, Supplies and Services Professional & Technical Services28,21815,14013,98311,10011,100 Operations148,74150,33846,38446,38446,6540.58% Debt Service480,2121,575,3141,593,0671,093,0001,085,000 Capital Outlay TIF projects - - - - - Transfers out 212,315240,409237,956212,654209,870-1.31% Total Expenditures869,4861,881,2011,891,3901,363,1381,352,624-0.77% Excess (deficiency) of Revenues over Expenditures-2076.69% 1,268,185 (91,447) 524,406 (53,138) 1,050,376 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. 2015 BUDGET 133 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 2015: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go (PAYG) financing to developer as scheduled. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $2,403,449 $1,307,000 $ 2,400,000 83.63% Interest 12,347 3,000 3,000 0.00% $2,415,796 $1,310,000 $ 2,403,000 83.44% EXPENDITURES: Materials, Supplies & Services $ 60,367 $ 57,484 $ 57,754 0.47% Debt Service - PAYG TIF $1,593,067 $1,093,000 $ 1,085,000 -0.73% Transfer Out 237,956 212,654 209,870 -1.31% $1,891,390 $1,363,138 $ 1,352,624 -0.77% NET TAX AND GENERAL -2076.69% REVENUE SUPPORTED $ (524,406) $ 53,138 $(1,050,376) PERSONNEL: Number of FTE positions000 Super Valu Development Excelsior Crossings Development 2015 BUDGET 134 CITY OF HOPKINS 5TH AVENUE FLATS Revenues and Expenditures Special Revenue Fund 232 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Tax Increments$ -$ -$ -$ -$ - Interest (1,964) (1,985) (2,126) - - Development Fees - - - - - Other Miscellaneous 158,128 - - - - Transfer In - - - - - Total Revenues 156,164 (1,985) (2,126) - - Expenditures Materials, Supplies and Services Professional & Technical Services 3,641 2,285 2,000 2,000 2,000 Miscellaneous Other Charges - - - - - Capital Outlay TIF Projects - - - - - Total Expenditures 3,641 2,285 2,000 2,000 2,000 Excess of Revenues over Expenditures $ 152,523$ (4,270)$ (4,126)$ (2,000)$ (2,000) 5th Avenue Flats is a redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. 2015 BUDGET 135 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 2015: 1. Work with developer on project implementation. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ - $ - $ - 0.00% Miscellaneous (2,126) - - 0.00% $ (2,126) $ - $ - 0.00% EXPENDITURES: Materials, Supplies & Services $ 2,000 $ 2,000 $ 2,000 0.00% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $ 4,126 $ 2,000 $ 2,000 PERSONNEL: Number of FTE positions000 Proposed Fifth Avenue Flats project 2015 BUDGET 136 CITY OF HOPKINS TIF 1-4 MARKETPLACE II Revenues and Expenditures Special Revenue Fund 234 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues 162.50% Tax Increments$ -$ 3,134$ 103,167$ 40,000$ 105,000 Interest (6) (9) 22 - 100 Miscellaneous 1,386 - - - - Transfers In 201,625 - - - - Total Revenues162.75% 203,005 3,125 103,189 40,000 105,100 Expenditures Materials, Supplies and Services 1.43% Professional & Technical Services 5,252 3,761 3,844 3,500 3,550 Miscellaneous 400,000 - - - - Interest Expense 614 - - 1,500 - Total Expenditures-29.00% 405,865 3,761 3,844 5,000 3,550 Excess of Revenues over Expenditures190.14% $ (202,861)$ (636)$ 99,346$ 35,000$ 101,550 The Tax Increment District 1-4 Fund is the redevelopment of several blocks of the downtown business district into a housing and retail development. This fund records the tax increment revenues. 2015 BUDGET 137 CITY OF HOPKINS FUND 233 – TAX INCREMENT 1-4 FUND PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY thth and 8 Avenues into mixed-use apartment, townhome & retail Redevelopment of property between 6 development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 103,167 $ 40,000 $ 105,000 162.50% Miscellaneous 22 - 100 #DIV/0! $ 103,189 $ 40,000 $ 105,100 162.75% EXPENDITURES: Materials, Supplies & Services $ 96,807 $ 40,000 $ 101,550 153.88% NET TAX AND GENERAL REVENUE SUPPORTED $ (6,382) $ - $ (3,550)#DIV/0! PERSONNEL: Number of FTE positions000 2015 BUDGET 138 CITY OF HOPKINS ARTS CENTER Revenues and Expenditures Special Revenue Fund 251 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Current Services$ -$ - $ -$ -$ 85,000 Grants1.61% 71,336 63,630 44,220 6 2,000 63,000 Current Services2.10% 328,079 369,822 361,508 3 68,156 375,901 Charges for Service - - - - - Other Revenues-11.54% 176,500 194,819 125,365 1 99,300 176,300 Transfers In-41.24% 147,920 147,920 147,920 1 47,920 86,920 Total Revenues1.25% 723,835 776,191 679,013 7 77,376 787,121 Operating Expenses Salaries, Wages and Benefits Salaries and Wages17.18% 278,297 277,799 287,623 2 51,862 295,129 Fringe Benefits20.46% 96,544 83,835 88,609 8 1,513 98,191 Materials, Supplies and Services Professional & Technical Services-3.44% 168,556 177,335 156,376 1 74,400 168,400 Utilities and Maintenance11.95% 78,554 83,598 79,500 8 3,650 93,650 Operations-2.61% 88,006 96,669 109,772 1 04,836 102,100 City Support Services20.25% 10,717 8,965 10,064 1 4,717 17,697 Supplies and Materials-13.90% 39,153 28,363 23,531 3 3,450 28,800 Capital Outlay Equipment - - - - 195,310 Total Expenses34.23% 759,828 756,563 755,475 7 44,428 999,277 Excess (deficiency) of Revenues over Expenditures-743.91% (35,993) 19,628 (76,462) 32,948 (212,156) The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 2015 BUDGET 139 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 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Taxes $ - $ - $ 85,000 #DIV/0! Intergovernmental 41,998 52,000 58,000 11.54% Charges for Service 475,539 543,756 533,401 -1.90% Foundation/Corporate Grants 2,222 10,000 5,000 -50.00% Miscellaneous 11,544 23,700 18,800 -20.68% Tranfer In 147,920 147,920 86,920 -41.24% $ 679,223 $ 777,376 $ 787,121 1.25% EXPENDITURES: Salaries/Wages/Benefits $ 376,232 $ 333,375 $ 393,320 17.98% Materials, Supplies & Services 379,243 411,053 410,647 -0.10% Capital Expenditures - - 195,310 $ 755,475 $ 744,428 $ 999,277 34.23% NET TAX AND GENERAL -743.91% REVENUE SUPPORTED $ 76,252 $ (32,948) $ 212,156 PERSONNEL: Number of FTE positions3.83.83.8 2015 BUDGET 140 CITY OF HOPKINS EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses Internal Service Fund 603 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Current Services$316,734$317,113$343,792$342,127$376,90010.16% Interest Earnings3,9982,9319,4415,3005,300 Miscellaneous50,01729,65327,23530,00030,000 Transfers In346,274475,349 - - - Total Revenues717,022825,046380,468377,427412,2009.21% Operating Expenses Materials, Supplies and Services Professional & Technical Services2,9532,7162,0002,0002,80040.00% Utilities and Maintenance1,0821,08211,17810,48825,312141.34% City Support Services11,7678,5749,4159,4157,357-21.86% Total Operating Expenses15,80212,37222,59321,90335,46961.94% Non-operating expenses440,435472,311476,963481,095478,965-0.44% Total Expenses456,237484,684499,555502,998514,4342.27% Net Income (Loss)-18.58% 260,785 340,362 (119,087) (125,571) (102,234) Capital323,437581,193746,100746,100408,700 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. 2015 BUDGET 141 CITY OF HOPKINS FUND 602 – EQUIPMENT REPLACEMENT FUND PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty-year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Update 5-year Equipment Replacement Plan. 2. Analyze future needs. 3. Review revenue structure to accommodate equipment needs as identified in the long-range 20-year plan. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for Service$343,792 $342,127 $376,900 10.16% Interest9,441 5,300 5,300 0.00% Miscellaneous27,235 30,000 30,000 0.00% Transfer In0 0 0 0.00% 380,468 377,427 412,200 9.21% EXPENDITURES: Materials, Supplies & Services37,463 41,903 75,389 79.91% Depreciation465,868 470,000 470,000 0.00% Debt Service11,094 11,095 8,965 -19.20% 514,425 522,998 554,354 6.00% NET SOURCE (USE) -2.35% OF EQUITY($133,957)($145,571)($142,154) Capital Purchases$478,034 $746,100 $408,700 -45.22% PERSONNEL: Number of FTE positions000 2015 BUDGET 142 CITY OF HOPKINS WATER BUDGET Revenues and Expenses Enterprise Fund 703 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues 3.97% Current Services$ 1,410,091$ 1,343,056$ 1,351,374$ 1,467,084$ 1,525,400 Permits 559 3,655 4,846 500 1,000100.00% Interest Earnings (804) 138 4,133 - 1,000 Miscellaneous6.55% 130,233 158,576 143,841 138,900 148,000 Total Revenues 1,606,4841,504,194 1,675,400 4.29% 1 ,540,079 1,505,425 Operating Expenses Salaries, Wages and Benefits Salaries and Wages2.59% 285,979 280,938 303,986 243,356 249,659 Fringe Benefits-3.53% 116,657 112,857 106,536 95,749 92,369 Materials, Supplies and Services Professional & Technical Services 73,650 79,140 106,692 120,400 120,400 Utilities and Maintenance-22.18% 242,805 296,148 247,943 405,700 315,700 Operations 10,914 8,449 9,611 24,000 19,900-17.08% City Support Services8.18% 247,106 209,244 245,992 232,792 251,827 Supplies and Materials2.93% 73,556 82,964 111,256 85,400 87,900 Depreciation 238,023 249,756 226,925 250,000 250,000 1,457,3971,358,940 1,387,755 -4.78% Total Operating Expenses 1 ,288,689 1,319,494 Non-operating expenses20.35% 41,473 64,620 114,154 114,254 137,510 Total Expenses 1,571,6511,473,094 1,525,265 -2.95% 1 ,330,163 1,384,115 Net Income (Loss) 2 09,916 121,310 31,100 34,833 150,135331.01% The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 2015 BUDGET 143 CITY OF HOPKINS FUND 703 – WATER FUND PROGRAM: Pumps & Wells and Water Distribution PROGRAM SUMMARY The Pumps & Wells program of the Water Utility Fund provides maintenance to the City’s water well pumping system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. The Water Distribution program of the Water Utility Fund provides maintenance to the City’s water system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Produce water supply sufficient to meet the needs of 17,000 people. 2. Flush and check all hydrants annually. 3. Check all wells each day. 4. Test samples each month to ensure safe water supply. 5. Reduce copper levels at taps to comply with Safe Drinking Water Act. 6. Well # 6 emergency generator installation & Moline tank valve upgrade. 7. Install dehumidifiers in # 4 Treatment Plant 8. Paint High Service Pump Room 9. Install emergency shut off valves for chlorine tanks 10. Start Fire Hydrant head upgrade to Storz connection 11. Install new valves & hydrants in new construction areas. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES:$1,351,374 $1,467,084 $1,525,400 3.97% OPERATING EXPENSES: Salaries/Wages/Benefits410,521 339,104 342,028 0.86% Materials, Supplies & Services721,494 912,292 839,727 -7.95% Depreciation Expense226,924 250,000 250,000 0.00% Operating Income (Loss)1,358,939 1,501,396 1,431,755 -4.64% NON-OPERATING REVENUES:162,250 138,400 149,000 7.66% NON-OPERATING EXPENSES:(114,154)(114,254)(137,510)20.35% 1134.18% NET INCOME (LOSS)$40,531 ($10,166)$105,135 Capital Outlay/Construction$100,530 $350,000 $250,000 -28.57% PERSONNEL: Number of FTE positions3.433.433.43 2015 BUDGET 144 CITY OF HOPKINS SANITARY SEWER BUDGET Revenues and Expenses Enterprise Fund 707 ActualActualActualBudgetBudgetPercent 20122013201420142015 Change Revenues Current Services$1,997,092$1,981,430$2,011,747$2,085,000$2,189,5005.01% Permits - - -1,000 --100.00% Interest Earnings 401 33 3,497 - 1,000 Miscellaneous157,21218,05415,59118,15018,2000.28% Total Revenues2,154,7051,999,5162,030,8352,104,1502,208,7004.97% Operating Expenses Salaries, Wages and Benefits Salaries and Wages141,163149,136163,324244,047249,4132.20% Fringe Benefits63,93257,72466,117100,96496,360-4.56% Materials, Supplies and Services Professional & Technical Services18,01383,62014,797113,600117,1003.08% Utilities and Maintenance62,33170,31095,617137,650150,5709.39% Operations1,138,2251,230,1421,293,3291,248,6201,321,6195.85% City Support Services164,748168,505173,585173,292156,634-9.61% Supplies and Materials12,37015,21516,62728,60028,7500.52% Depreciation164,931171,604158,431170,000170,000 Total Operating Expenses1,765,7141,946,2581,981,8272,216,7732,290,4463.32% Non-operating expenses - -50,00050,00050,000 Total Expenses1,765,7141,946,2582,031,8272,266,7732,340,4463.25% Net Income (Loss)-18.99% 388,992 53,258 (992) (162,623) (131,746) The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 2015 BUDGET 145 CITY OF HOPKINS FUND 707 – SEWER FUND PROGRAM: Lift Stations, Collection & Disposal PROGRAM SUMMARY The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the City’s sanitary sewer lift station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer System for disposal. The Collection & Disposal program of the Sewer Utility Fund provides maintenance to the City’s sanitary sewer system. The system is comprised of sewers, manholes, and lift stations so that sewage may be transported to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Mechanically clean 33% of sanitary sewer lines in the City plus monthly checks of manholes in problem areas. 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility mapping system. 5. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 6. Repair or replace manhole cover & casting as needed. 7. Line & repair sewer mains as needed per T.V. reports, also repair of manhole structures. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange $2,026,838 $2,103,000 $2,207,500 4.97% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits229,441 345,011 345,773 0.22% Materials, Supplies & Services1,595,024 1,701,762 1,774,673 4.28% Depreciation Expense158,431 170,000 170,000 0.00% 3.32% Operating Income (Loss)1,982,896 2,216,773 2,290,446 90,592 1,150 1,200 4.35% NON-OPERATING REVENUES: (96,460)(96,492)(91,618)-5.05% NON-OPERATING EXPENSES: -17.10% NET INCOME (LOSS)$38,074 ($209,115)($173,364) Capital Outlay/Construction$36,821 $255,000 $150,000 -41.18% PERSONNEL: Number of FTE positions3.463.763.76 2015 BUDGET 146 CITY OF HOPKINS REFUSE BUDGET Revenues and Expenses Enterprise Fund 717 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Current Services$866,808$ 893,583$ 908,441$ 899,700$ 909,7001.11% County Grant17,79524,58424,64525,00025,000 9,3142,5002,500 Interest Earnings2,682 (1,791) Miscellaneous40,48020,22013,20120,00012,600-37.00% Total Revenues927,764936,596955,602947,200949,8000.27% Operating Expenses Salaries, Wages and Benefits Salaries and Wages227,260194,321187,328251,450250,591-0.34% Fringe Benefits75,38063,41660,74985,15084,803-0.41% Materials, Supplies and Services Professional & Technical Services125,500122,959118,655125,640125,8400.16% Utilities and Maintenance29,15945,18959,42324,80030,90024.60% Operations135,318123,187144,747136,050139,8602.80% City Support Services165,143150,044117,537116,966134,78215.23% Supplies and Materials55,50566,92476,70951,15055,6008.70% Depreciation55,09453,67347,90956,00056,000 Total Operating Expenses868,361819,713813,057847,206878,3763.68% Non-operating expenses25,00025,00025,00025,00025,000 Total Expenses893,361844,713838,057872,206903,3763.57% Net Income (Loss) 34,404 91,883 117,546 74,994 46,424-38.10% The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 2015 BUDGET 147 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Bulk Collection PROGRAM SUMMARY The Bulk Collection program of the FY 2014FY 2015 Refuse Utility Fund is a user fee based FY 2014ApprovedApprovedPercent service that provides bulk item pickup ActualBudgetBudgetChange for larger items. Pick ups are scheduled on a call-in basis and take place $16,858 $15,000 $13,000 -13.33% OPERATING REVENUES: Thursdays throughout the year. A bulk item drop off event is provided twice per OPERATING EXPENSES: year (spring & fall). Salaries/Wages/Benefits12,287 14,893 15,006 0.76% Materials, Supplies & Services24,469 24,540 23,916 -2.54% MAJOR OBJECTIVES TO BE -1.30% Operating Income (Loss)36,756 39,433 38,922 ACCOMPLISHED IN 2015: 1. Review and expand user fee based 6.09% NET INCOME (LOSS)($19,898)($24,433)($25,922) system. (Council Approval PERSONNEL: Required) Number of FTE positions0.260.260.26 2. Improve drop off procedures and increase efficiency at our bi-annual drop offs. PROGRAM: Yard Waste/Leaf Collection PROGRAM SUMMARY The Yard Waste/Leaf Collection program of the Refuse Utility Fund is a user fee based service that provides bagged yard waste and leaf collection weekly, mid-April through November, for Hopkins residential refuse customers. (Subject to change upon Council review.) A free drop-off site is also available to Hopkins residents three times a week. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor usage of free residential drop off site. 3. Track impact of curbside fee increase and compostable bag requirement. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange $9,710 $8,000 $10,000 25.00% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits37,443 43,033 42,550 -1.12% Materials, Supplies & Services29,660 26,322 25,886 -1.66% -1.33% Operating Income (Loss)67,103 69,355 68,436 -4.76% NET INCOME (LOSS)($57,393)($61,355)($58,436) PERSONNEL: Number of FTE positions0.620.620.62 2015 BUDGET 148 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Recycle PROGRAM SUMMARY The Recycle program of the Refuse Utility Fund provides bi-weekly single stream recycle collection for 2,990 residences in the City Service area. Collection is provided by a private licensed hauler who is contracted by the City. Commercial and multi-family properties are required to contract independently for recycling services. FY 2014FY 2015 FY 2014ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ActualBudgetBudgetChange ACCOMPLISHED IN 2015: 1. Monitor the Single Stream Recycling OPERATING REVENUES:$147,206 $146,700 $154,700 5.45% Program and work with residents to OPERATING EXPENSES: increase the volume of waste recycled. Salaries/Wages/Benefits30,884 31,118 31,830 2.29% 2. Verify compliance of commercial and multi- Materials, Supplies & Services150,234 158,662 155,193 -2.19% family properties. Operating Income (Loss)181,118 189,780 187,023 -1.45% 3. Continue to promote waste abatement through public awareness campaigns and NON-OPERATING REVENUES:26,050 37,000 26,600 -28.11% educational presentations. NET INCOME (LOSS)($7,862)($6,080)($5,723)-5.87% PERSONNEL: Number of FTE positions0.410.410.41 PROGRAM: Brush Service PROGRAM SUMMARY The Brush Service program of the Refuse Utility Fund is a user fee based service that provides for the collection of curbside brush weekly on a call-in basis on Tuesdays throughout the year. Free yard waste/brush drop off is offered three times per week from mid-May through November. (Subject to change upon Council review.) MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor impact of curbside brush pick-up fee increase on program usage. 3. Continue free residential drop off system. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES: $0 $0 $0 0.00% OPERATING EXPENSES: Salaries/Wages/Benefits29,356 59,814 57,009 -4.69% Materials, Supplies & Services30,837 29,868 28,876 -3.32% Operating Income (Loss)60,193 89,682 85,885 -4.23% NET INCOME (LOSS)($60,193)($89,682)($85,885) -4.23% PERSONNEL: Number of FTE positions0.6550.6550.655 2015 BUDGET 149 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 2015: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES:$746,464 $738,000 $743,000 0.68% OPERATING EXPENSES: Salaries/Wages/Benefits138,107 187,742 188,999 0.67% Materials, Supplies & Services281,870 215,214 253,111 17.61% Depreciation Expense47,909 56,000 56,000 0.00% Operating Income (Loss)467,886 458,956 498,110 8.53% NON-OPERATING REVENUES:9,314 2,500 2,500 0.00% NON-OPERATING EXPENSES:(25,000)(25,000)(25,000)0.00% NET INCOME (LOSS)$262,892 $256,544 $222,390 -13.31% Capital Outlay/Construction$0 $0 $204,800 #DIV/0! PERSONNEL: Number of FTE positions2.1452.1452.145 2015 BUDGET 150 CITY OF HOPKINS STORM SEWER BUDGET Revenues and Expenses Projected Enterprise Fund 740 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Current Services$801,345$799,603$802,898$802,000$802,000-0.11% -88.82% Interest Earnings 2,987 (1,717) 8,944 1,000 1,000 Total Revenues804,332797,886811,842803,000803,000-1.09% Operating Expenses Salaries, Wages and Benefits Salaries and Wages44,11449,81945,50350,11149,86110.13% Fringe Benefits15,06417,09613,70116,54415,67920.75% Materials, Supplies and Services Professional & Technical Services1,00014,5868,8019,00014,0002.27% Utilities and Maintenance4,65017,37230,2847,00044,000-76.89% City Support Services78,72777,80287,49087,43869,186-0.06% Supplies and Materials1,0909741,6681,5001,500-10.07% Depreciation215,432227,366211,108227,000227,000 Total Operating Expenses360,077405,016398,554398,593421,2260.01% Non-operating expenses147,084155,437415,10762,04569,512-85.05% Total Expenses507,162560,452813,661460,638490,738-43.39% Net Income342,362312,262-18930.65% 297,171237,434 (1,818) The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the City is recorded here. 2015 BUDGET 151 CITY OF HOPKINS FUND 740 – STORM SEWER FUND PROGRAM: Sewer Maintenance PROGRAM SUMMARY The Sewer Maintenance program of the Storm Sewer Fund maintains all storm sewer lines and storm inlets to assure adequate run-off. Creeks and ditches must be monitored to assure proper run-off and weed and pollution control. This work is done with men and equipment from the Water & Sewer and Street & Sanitation divisions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2015: 1. Continue upgrades of storm water system including catch basin maintenance upgrades and open drainage ditch maintenance. 2. Continue reviewing overall city storm water drainage system and meet all requirements of city’s National Pollution Discharge Elimination System (NPDES), Phase II Storm Water Pollution Prevention Plan (SWPPP). 3. Complete construction of watershed-funded Nine Mile Creek stream bank stabilization and habitat enhancement project. 4. Continue grit chamber cleaning 5. Clean catch basins and inspect for repair. 6. Work with MCWD to plan and design storm water improvements at expanded Cottageville Park site FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES:$802,898 $802,000 $802,000 0.00% OPERATING EXPENSES: Salaries/Wages/Benefits59,204 66,655 65,540 -1.67% Materials, Supplies & Services194,792 123,938 128,686 3.83% Depreciation Expense211,108 227,000 227,000 0.00% 0.87% Operating Income (Loss)465,104 417,593 421,226 8,944 1,000 1,000 0.00% NON-OPERATING REVENUES: (415,107)(62,045)(69,512)12.03% NON-OPERATING EXPENSES: -3.43% NET INCOME (LOSS)($68,369)$323,362 $312,262 Capital Outlay/Construction$193,073 $900,000 $470,000 -47.78% PERSONNEL: Number of FTE positions0.630.630.63 2015 BUDGET 152 CITY OF HOPKINS PAVILION Revenues and Expenses Projected Enterprise Fund 747 ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues 5.17% Rental$ 335,792$ 340,131$ 338,500$ 338,500$ 356,000 Interest Earnings 1,033 (326) 1,000 1,000 1,000 Miscellaneous1.51% 70,979 65,054 33,100 33,100 33,600 Total Revenues404,859 4.83% 407,805 372,600 372,600390,600 Operating Expenses Salaries, Wages and Benefits Salaries and Wages-0.39% 167,491 174,644 181,248 183,603 182,893 Fringe Benefits2.18% 47,189 49,115 50,007 48,599 49,658 223,759 0.15% Total Salaries and Wages 214,680 231,255 232,202232,551 Materials, Supplies and Services 0.70% Professional & Technical Services 4,750 4,639 6,080 7,100 7,150 Utilities and Maintenance0.09% 97,025 84,584 98,572 85,000 85,075 Operations 623 (945) 491 1,750 1,600-8.57% City Support Services-0.56% 20,272 16,482 17,602 16,660 16,566 Supplies and Materials-3.69% 16,709 19,739 18,314 20,300 19,550 -0.66% Total Materials Supplies & Service 139,378 124,499 141,059 130,810 129,941 -0.14% Total Operating Expenses 354,058 348,258 372,314 363,012 362,492 Non-operating expenses 67,447 71,619 72,000 72,000 72,000 Total Expenses 435,012-0.12% 421,505 419,878 444,314 434,492 Net Income (Loss)-29.67% (13,700) (15,019) (71,714) (62,412) (43,892) The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded in this fund. 2015 BUDGET 153 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 2015: 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 2014FY 2015 FY 2014ApprovedApprovedPercent BudgetBudgetChange Actual OPERATING REVENUES:$369,608 $362,100 $382,000 5.50% OPERATING EXPENSES: Salaries/Wages/Benefits231,255 232,202 232,551 0.15% Materials, Supplies & Services141,075 130,910 130,041 -0.66% Depreciation Expense76,181 72,000 72,000 0.00% Operating Income (Loss)448,511 435,112 434,592 -0.12% NON-OPERATING REVENUES:18,813 10,500 73,000 595.24% NON-OPERATING EXPENSES:(3,363)(3,350)(3,025)-9.70% NET INCOME (LOSS)($63,453)($65,862)$17,383 -126.39% Capital Outlay/Construction$180,118 $120,000 $60,000 -50.00% PERSONNEL: Number of FTE positions2.42.42.4 2015 BUDGET 154 CITY OF HOPKINS DEBT SERVICE FUNDS Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20122013201420142015Change Revenues Property Tax$77,227 $351,970 $625,887 $467,258 $1,514,844224.20% Special Assessments577,2961,280,681808,794864,840906,5094.82% Interest7,59115,603 58.57%5,550 (362) 3,500 Bond Premium65,704190,674 42,010 - - Transfer In895,5276,967,005682,971650,291-4.78% 808,120 Bond Proceeds5,985,0008,240,000 1,920,000 - - Total Revenues7,608,3464,402,42016,847,9633,077,19552.44% 2,018,569 Expenditures Bond expenditures Professional Fees95,52610,8537,4649,12112,17633.49% Principal1,270,0001,970,0001,970,0008,570,000335.03% 1,560,000 Interest593,476683,725683,724617,988-9.61% 655,973 Fiscal charges4,6685,6745,750-6.52% 3,558 5,375 Bond Discount 12,830-43,610 - - Transfer Out5,803,6378,269,466 170,000- 2,389,599 Total Expenditures7,780,1374,619,98210,979,9389,375,539251.33% 2,668,595 Sources (Uses) of Fund Balance(171,791)(217,562)5,868,025(650,026)(6,298,344)-111.08% Debt Service funds finance and account for the payment of interest and principal on all general obligation debt other than debt issued for an enterprise fund. InJanuary 2014 the City's credit AA+ rating was upgraded to a following an interium rating review. This rating was reaffirmed later in 2014 when we sold bonds in July and again in November. 2015 BUDGET 155 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. 2015 BUDGET 156 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. 2015 BUDGET 157 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 2015 BUDGET 158 CITY OF HOPKINS service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. GASB (Governmental Accounting Standards Board) – It is the highest source of accounting and financial reporting guidance for state and local governments. General Fund – The largest fund in the City, the General Fund accounts for most of the City’s financial resources. General Fund revenues include: property taxes, licenses and permits, local taxes, service charges and other types of revenues. This is the fund that accounts for the revenues and expenditures necessary to deliver basic operating services: police, fire, finance, parks, public works, etc. General Obligation Bonds – When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds with are to be repaid from taxes and other general revenues. GFOA (Government Finance Officers Association) – the professional association of state and local finance officers in the United States who are dedicated to the sound management of government financial resources. The association sets program standards for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Award. Governmental Funds – The General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. HBCA – Hopkins Business and Civic Association, ensures a strong economic development climate, provides promotional activities, encourages community involvement and fosters a sense of community among individuals, civic organizations and businesses Hopkins in Motion – This annual event focuses on the walkability/ livability of Hopkins and encourages participants to be active while having fun. Indirectly Funded Amount – The portion of appropriates not funded by program revenues such as fees and grants. This portion is funded from shared revenues such as property tax, governmental revenues or a city-wide fee not directly attributed to any one program. Interest Earnings – Interest received from the investment of cash in a fund. Intergovernmental Revenues – Funds received from State or Federal governments in the form of grants or shared revenues for various activities. Internal Service Funds – The funds within the Proprietary Fund that account for the financing of goods or services provided by one department or agency to other departments or agencies of a government. IT – Information Technology Department of the city. This department provides computer technology support to all city departments. 2015 BUDGET 159 CITY OF HOPKINS Levy – To impose taxes, special assessments or service charges. Licenses – Revenues received by the issuance of various licenses that are granted to various businesses in the City. Local Government Aid(LGA) - Money given to the City from the State based on a formula that was originally designed to provide tax relief and equalization among cities. LMC – The League of Minnesota Cities is a membership organization dedicated to promoting excellence in local government. The League serves its more than 800 member cities through advocacy, education and training, policy development, risk management, and other services. LRT – Light Rail Transit, a commuter train system in the Minneapolis/St. Paul metropolitan area. Major Account Series – Three classifications of expenditures made by the City. Salaries, Wages and Benefits – Costs relating to employees or temporary help, including fringe benefits. Materials, Supplies and Services – Costs relating to articles of non-durable nature, such as office supplies; professional and technical services; utilities and maintenance; operations and city support services. Capital Outlay – Costs of durable goods such as furniture and equipment. Reimbursed Expenditures – Offset against costs for services provided by one fund to another fund. Major Fund – Governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. Market Value Homestead Credit (MVHC) – Started in 2002, this is the primary State program for property tax relief. The State remits a portion of sales and income taxes to local government to assist in keeping property taxes down. MCES – Metropolitan Council Environmental Services provides the City with wastewater service. Miscellaneous Revenue – Funds collected from various sources generally on a non-recurring basis. Modified Accrual Basis – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Net Assets – The equity associated with general government less liabilities. Non-major Fund – A governmental fund or enterprise fund that is reported in total in the basic fund financial statements. Operating Expenditure – Expenditure classifications based upon the types of categories of goods and services purchased. Typical objects include: personal services (salaries and wages); contracted services (utilities, maintenance, contracts, travel); supplied and materials; and capital outlay. 2015 BUDGET 160 CITY OF HOPKINS Operating Budget – Financial plan for the fiscal year, which authorizes proposed personnel complements, expenditures and the revenues to finance them. Penalties – Charges to utility customers caused by late payment of their water, sewer, and refuse bills. Permits – Revenue derived from various permits as defined in the City Code, for the performance of a specific action. For example, building a house. Personal Services – The cost of salaries and wages paid to employees as well as the fringe benefits associated with employment (i.e. Social Security, PERA, health insurance, life insurance, etc.). Program – Within each Department are several divisions or programs in the City, each charged with carrying out a specific function. Proposed Budget – Budget as submitted by the City Manager to the City Council. Proprietary Funds – The funds that account for government operations financed and operated in a manner similar to a private business. Refuse Service – Revenue incurred from the sale of trash pick-up and disposal, leaf pick-up, yard waste and recycling to residential customers of the City. Retained Earnings – An equity account reflecting the accumulated earnings of the City’s Proprietary (Enterprise) Funds. Sewer Service – Revenue incurred from the sale of sanitary sewer service to customers of the utility. Special Assessment – Receipts from assessments placed on property within the City for public improvements that have benefited that property. Special Revenue Funds – A fund that accounts for revenues derived from specific taxes or other earmarked revenue sources. Storm Sewer Sales – Revenue derived from a storm sewer utility fee assessed property owners based on the amount of impervious surface on their property. Revenues are used to maintain and improve the City’s storm sewer system. SWLRT – Southwest Light Rail Transit. A commuter train system in the Southwest area of the Minneapolis/St. Paul metropolitan area. Tax Capacity – County tax base for the purposes of levying property taxes. Properties are assigned rates at which their values will be converted into the tax base, (see tax classification rate). Tax Capacity Rate – Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. 2015 BUDGET 161 CITY OF HOPKINS Tax Classification Rate – Rates at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type. Tax Increment Financing – Financing tool originally intended to combat severe blight in areas which would not be redeveloped “but for” the availability of government subsidies derived from locally generated property tax revenues. Tax Increments – The value of local taxes collected on a redeveloped or developed property, above the base year taxes. TIF – An abbreviation for Tax Increment Financing. TOD – Transit Orientated Development. A term used to describe development surrounding Light Rail Transit. Transfers – Funds transferred between City funds. Truth-in-Taxation – Procedures adopted by the 1998 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. These procedures are revised annually. Truth-in-Taxation Public Hearing – Statutory requirement for most local governments to hold public hearings on their proposed budgets and property tax levies. Water Sales – Revenue earned from the sale of water to customers of the utility. Working Capital – Current assets minus current liabilities. This measure is used as a gauge in determining appropriate fund balances. 2015 BUDGET 161