2011 City of Hopkins, MN Annual Report
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2011
Prepared by the Department of Finance
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
T
YEAR ENDED DECEMBER 31, 2011
TABLE OF CONTENTS
IINTRODUCTORY SECTION
Page
Letter of Transmittal from the City Manager and Finance Directo3
r
Certificate of Achievement for Excellence in Financial Reportin9
g
Administrative Organization Char10
t
City Officials11
IIFINANCIAL SECTION
Independent Auditors' Repor13
t
Management's Discussion and Analysis (Unaudited15
)
A.Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets30
Statement of Activities31
Fund Financial Statements:
Balance Sheet - Governmental Fund32
s
Reconciliation of the Balance Sheet of Governmental Fund
s
to the Statement of Net Assets34
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Fund36
s
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities38
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fun39
d
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - Economi
c
Development Special Revenue Fun44
d
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - Tax Increment 2-11
Special Revenue Fun45
d
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - Arts Cente
r
Special Revenue Fun46
d
Statement of Net Assets - Proprietary Fund48
s
Statement of Revenues, Expenses, and Changes in
Net Assets - Proprietary Fund50
s
Statement of Cash Flows - Proprietary Fund51
s
Notes to Financial Statements54
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
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YEAR ENDED DECEMBER 31, 2011
Page
B.Required Supplementary Informatio
n
Schedule of Funding Progress - Other Postemployment Benefit Pla80
n
C.Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Fund83
s
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Fund90
s
Schedules of Revenues, Expenditures, and Changes in Fun
d
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 97
Real Estate Purchases and Sales98
Housing Rehab99
Parking100
Communications101
Depot Coffee House102
Tax Increment District Entertainment Cente103
r
Tax Increment District R.L. Johnson Compan104
y
Tax Increment District Sonoma Projec105
t
Tax Increment District Oaks of Mainstree106
t
5th Avenue Flats107
Tax Increment District Marketplace & Mai108
n
Combining Statement of Net Assets - Nonmajor Enterprise Funds110
Combining Statement of Revenues, Expenses and Changes in
Net Assets - Nonmajor Enterprise Funds111
Combining Statement of Cash Flows - Nonmajor Enterprise Funds112
Combining Statement of Net Assets - Internal Service Fund114
s
Combining Statement of Revenues, Expenses, and Changes in
Net Assets - Internal Service Fund115
s
Combining Statement of Cash Flows - Internal Service Fund116
s
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
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YEAR ENDED DECEMBER 31, 2011
IIISTATISTICAL SECTION
Page
A.Financial Trends
Net Assets by Componen119
t
Changes in Net Assets120
Fund Balances, Governmental Fund122
s
Changes in Fund Balances, Governmental Fund124
s
B.Revenue Capacit
y
Assessed and Actual Value of Taxable Propert126
y
Direct and Overlapping Property Tax Rate127
s
Principal Property Taxpayer128
s
Property Tax Levies and Collection129
s
C. Debt Capacit
y
Ratios of Outstanding Debt by Typ130
e
Ratios of Net General Bonded Debt Outstandin131
g
Direct and Overlapping Governmental Activities Deb132
t
Legal Debt Margin Informatio133
n
Pledged-Revenue Coverag134
e
D.Demographic and Economic Informatio
n
Demographic and Economic Statistics135
Principal Employers136
E.Operating Informatio
n
Full-time Equivalent Employees by Typ137
e
Operating Indicators by Function/Progra138
m
Capital Asset Statistics by Function/Progra140
m
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2011
SECTION I
INTRODUCTORY SECTION
1
2
June 5, 2012
To the Honorable Mayor, Members of the Hopkins City Council and the Citizens of the
City of Hopkins, Minnesota:
The Comprehensive Annual Financial Report (CAFR) of the City of Hopkins, Minnesota (the City)
for the fiscal year ended December 31, 2011 is hereby submitted. This report was prepared in
accordance with U.S. generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) and meets the requirements of the State
Auditor’s Office.
This report consists of management’s representations concerning the finances of the City of
Hopkins. Consequently, management assumes full responsibility for both the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for
making these representations, management of the City of Hopkins has established a comprehensive
internal control framework that is designed both to protect the government’s assets from loss, theft,
or misuse and to compile sufficient reliable information for the preparation of the City of Hopkins
financial statements in conformity with GAAP. Because the cost of internal controls should not
outweigh their benefits, the City of Hopkins comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best of our knowledge and
belief, this financial report is complete and reliable in all material respects.
The City of Hopkins financial statements have been audited by CliftonLarsonAllen LLP, a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City of Hopkins for the fiscal year ended
December 31, 2011, are free of material misstatement. The independent audit involved examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor concluded based
upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City
of Hopkins financial statements for the fiscal year ended December 31, 2011, are fairly presented in
conformity with GAAP. The independent auditors’ report is presented as the first component of the
financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found in the financial section of this report
immediately following the report of the independent auditors.
3
Profile of the Government
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in 1893.
The name was changed in 1928 to Hopkins after one of the early residents. The original territory of
incorporation was three square miles, but successive annexation since 1946 has enlarged this area
by one-third. In 1947, the residents of the area adopted a City Charter with a Council/Manager
form of government. The governing council is responsible, among other things, for passing
ordinances, adopting the budget, appointing committees and hiring the government’s manager and
the government’s attorney. The government’s manager is responsible for carrying out the policies
and ordinances of the government, for overseeing day-to-day operations of the government and for
appointing the heads of the government’s departments.
The report includes all funds of the City, including the City’s Housing and Redevelopment
Authority (HRA). The City provides a full range of services including general government, public
safety, highways and streets, urban redevelopment and housing, culture and recreation, and health
and welfare. In addition to general municipal activities, the City provides water, sewer, storm sewer
and refuse services and operates an ice arena. Low-income rental housing is a function of the HRA.
The Hopkins Fire Relief Association has not met the established criteria for inclusion in the
reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and control.
All departments of the City of Hopkins are required to submit requests for appropriation to the
Finance Director by July of each year. The Finance Director uses these requests as the starting
point for developing a proposed budget. The Finance Director then presents this proposed budget to
the Council for review prior to September 15th. The Council is required to hold public hearings on
the proposed budget and to adopt a final budget no later than December 31, the close of the City of
Hopkins fiscal year.
The appropriated budget is prepared by fund and department. Department heads may make
transfers of appropriations within a department. Transfers of appropriations between funds require
approval of the City Council. Budget to actual comparisons are provided in this report for each
individual governmental fund for which an annual budget has been adopted. For the General Fund
and the major Special Revenue Funds this comparison is presented on pages 39-46 as part of the
basic financial statements for the governmental funds. For governmental funds, other than the
General fund and major Special Revenue Funds, with annual budgets, this comparison is presented
in the combining and individual fund statements and schedules subsection of this report on pages
97-108.
Factors Affecting Financial Condition
The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly
fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan
complex, is readily accessible by the many highways and railways leading into the area. This easy
access prompted steady growth for the City of Hopkins during its formative years. In response to
this growth the City developed goals of working towards a planned community, with its policies
directed toward sound ratios of residential, commercial and industrial components, with the current
tax base approximately 76% single family residential and apartments, and 24% commercial-
4
industrial. The city’s population has stabilized due to the fact that the City is largely developed and
the national trend toward the lowering of persons per household.
The City Council and staff along with an organized group of concerned partners determined what
the Vision and the Mission of the City of Hopkins should be. Participation in this project was very
high and the resulting Vision and Mission are as follows:
Community Vision
Creating a Spirit of Unity – Hopkins will be a community where
People are treated with respect
People participate in building culture, character and common bonds
Business growth throughout the City is supported while maintaining a vibrant City center
People feel safe, support outstanding schools and celebrate cultural heritages
People enjoy quality public services, parks and housing
City of Hopkins Mission
Partnering with the Community to enhance the quality of life,
–Inspire, Educate, Involve, Communicate
Economic Condition and Outlook
Hopkins continues to show strong economic and redevelopment activities within the city. The
valuation of new non-residential construction in 2011 was $12.4 million dollars. This development
activity has been the result of a good development market in the Hopkins area along with successful
planning on the part of the city council and city staff.
Significant projects completed or begun in 2011 include the following:
Activity Valuation
Commercial Additions/Alterations:
Marketplace & Main Apartments $8,350,000
Excelsior Crossing Phase III $1,050,000
Hopkins Health & Wellness Center Expansion $3,000,000
Holiday Station Stores $ 325,000
7900 Excelsior Blvd $ 300,000
Efforts are being made for continued development and growth for 2012 and beyond. It is
anticipated that approximately $137,000,000 of construction will also take place in the City of
Hopkins during the next several years.
Some anticipated projects for 2012-2015 include the following:
Project Valuation
Hopkins Cold Storage Site Redevelopment $62,000,000
Marketplace & Main Townhomes $ 2,000,000
Fifth Avenue Flats $40,000,000
th
8 Avenue Redevelopment $30,000,000
Mayon Plastics Site Redevelopment $ 3,000,000
5
Long-term financial planning
The City of Hopkins has developed a strategic plan for economic development. As a part of this
plan, the City of Hopkins intends to pursue various development and redevelopment efforts
throughout the City. Several projects are anticipated.
In 2012, projects to be constructed include the redevelopment of the Park Nicollet Clinic site into a
retail/housing development of approximately 110 housing units and Phase I of Market Place &
Main apartments. These developments will have major impacts on the community. Specialized
planning is taking place to ensure that these developments occur so as to benefit the community and
residential neighborhoods.
Major improvements continue to be made along the Hopkins section of Excelsior Boulevard
(County Road 3). The first phase of improvements occurred in 1998 - 2000 between Shady Oak
th
Road and 9 Avenue South. The second phase occurred in 2002 – 2004 between Highway 169 and
th
Blake Road. The third phase occurred in 2007 on the segment between Highway 169 and 8
Avenue. The final phase is the section from Blake Road to Meadowbrook Road, has provisional
county funding and is tentatively scheduled for 2016-2017.
Significant improvements are in the planning stage for Shady Oak Road (County Road 61). This
project is a joint effort between Hennepin County and the Cities of Minnetonka and Hopkins. A
number of neighborhood and town meetings have been held to gather input on this project that is
projected to re-align the road and facilitate re-development of the area. The project is expected to
be under construction in 2014.
Another project in the planning stages is the 14-mile Southwest Corridor Light Rail Transit (LRT)
line that will go from Eden Prairie to downtown Minneapolis passing through Hopkins and
providing development potential at three transit stations that are planned for Hopkins. In downtown
Minneapolis the Southwest LRT will connect with the Hiawatha and Central LRT lines.
Construction of the light rail line is expected to begin in 2014 and is expected to be funded with the
Counties Transit Improvement Board’s transit sales tax in the metro area (30%), and with Hennepin
County Regional Railroad Authority (10%), Federal (50%), and State (10%) dollars.
Relevant Financial Policies
The State of Minnesota facing their own budget challenges unallotted city Market Value Homestead
Credit (MVHC) aid for the fourth year. This resulted in a 2011 budget shortfall of $257,696 for the
City of Hopkins. It is the city’s policy to maintain a balanced budget, therefore budget adjustments
to delay filling an open position, elimination of non-essential capital items, and the authority to levy
the MVHC shortfall as a special levy (86% of shortfall was levied) were implemented thus
achieving a balanced budget for 2011.
Major Initiatives
For 2011, the staff, following specific directives of the council and the city manager, has been
involved in a variety of projects throughout the year. These projects reflect the government’s
commitment to ensuring that its citizens are able to live and work in a safe environment and that the
needs for services are met.
6
In 2011, we accomplished our annual street repair and improvements, at a cost of approximately
$1,602,500. This included the Central Hopkins reclamation project, replacing infrastructure,
thth
roadway surface, curb and gutters and alley reconstruction along 14 through 16 Avenues N
rdth
including service roads in the target area and portions of 3 and 4 Streets N.
The sewer department completed upgrades to Lift Station #1 at a cost of $337,500 and the storm
sewer department completed work on the Nine Mile Creek Bank Stabilization incurring project
costs of $246,070. In 2011, the water, sewer and storm sewer departments also completed in
conjunction with the street improvements, infrastructure reconstruction projects totaling $470,000.
Other miscellaneous improvement projects in 2011 included the emergency vehicle preemptive
signal upgrade at the Highway 169 interchange providing more efficient delivery of emergency
services ($52,250), Shady Oak Beach play area improvement ($200,000), improvements to various
city parks ($54,000), along with other smaller projects.
Future projects
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in
2003, which guides future improvements and connections to regional trails.
The City has established a street reconstruction and storm sewer program based on a street
condition survey and storm water management program. The streets found in poor condition and
future problem streets will be systematically included for repairs in the five-year Capital
Improvement Plan.
Certificate of Achievement For
Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial reporting to the City of Hopkins for its
comprehensive annual finance report for the fiscal year ended December 31, 2010. In order to be
awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit
must publish an easily readable and efficiently organized comprehensive annual financial report.
This report must satisfy both U.S. generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only.We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
Acknowledgments
We wish to express our appreciation to the Mayor and City Council for their continued interest and
support in planning and conducting the financial operations of the City in a responsible and
7
progressive manner. We also want to express our appreciation to the Finance Department staff for
their work in preparing this report.
Respectfully submitted,
Michael J. Mornson Christine M. Harkess, CPA, CGFM
City Manager Finance Director
8
9
Organizational Chart
CITIZENS
CITY
Boards &
City Attorney
COUNCIL
Commissions
AdministrativeCenter for the
City Manager
ServicesArts
City of
Minnetonka
Community
FinanceFireRecreation
Services
AssessingFire & MedicalDepot Coffee
Accounting
City ClerkResponseHouse
Payroll
CommunicationsPrevention
Utility Billing
InformationEmergency
ServicesPreparedness
Inspections
Reception
Activity Center
Planning &
EconomicPolicePublic Works
Development
Economic
Building Maint. &
Patrol
Development
Equipment Services
Investigation
Housing
Engineering
Communication
Planning &
Parks & Forestry
Crime
Zoning
Street/Traffic/Refuse
Prevention
Public Housing
Water & Sewer
Pavilion/Ice Arena
10
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
T
CITY OFFICIALS
December 31, 2011
CITY COUNCIL
Ter
m
Expires
Eugene MaxwellMayo12-31-13
r
Molly CummingsCouncilmembe12-31-15
r
Jason GadCouncilmembe12-31-15
dr
Kristi HalversoCouncilmembe12-31-13
nr
Cheryl YouakiCouncilmembe12-31-13
mr
CITY MANAGE
R
Michael J. MornsonAppointe
d
FINANCE DIRECTO
R
Christine M. HarkessAppointe
d
11
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2011
SECTION II
FINANCIAL SECTION
12
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Hopkins,
Minnesota (the City) as of and for the year ended December 31, 2011, which collectively comprise the
City’s basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the City of Hopkins, Minnesota as of December 31, 2011, and
the respective changes in financial position and cash flows, where applicable, thereof and the
budgetary comparison for the general fund and major special revenue funds for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
As discussed in the notes to the basic financial statements, the City of Hopkins, Minnesota adopted the
provisions of Government Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, as of and for the year ended December 31, 2011. The statement
results in the City reporting nonspendable, restricted, committed, assigned, and unassigned fund
balances in its governmental funds.
In accordance with Government Auditing Standards, we have also issued our report dated June 5,
2012, on our consideration of the City of Hopkins, Minnesota’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
13
Honorable Mayor and
Members of the City Council
City of Hopkins
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the schedule of funding progress as listed on the table of
contents be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Hopkins, Minnesota’s basic financial statements. The combining and
individual nonmajor fund financial statements and schedules are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The combining and individual
nonmajor fund financial statements and schedules are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the
financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Hopkins, Minnesota’s basic financial statements. The introductory and
statistical sections are presented for purposes of additional analysis and are not a required part of the
basic financial statements. Such information has not been subjected to the auditing procedures applied
in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide
any assurance on it.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 5, 2012
14
CITY OF HOPKINS, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
This section of the City’s comprehensive annual financial report presents a discussion and analysis
of the City’s financial activities during the fiscal year ended December 31, 2011. This discussion
and analysis should be read in conjunction with the letter of transmittal in the introductory section of
this report.
Financial Highlights
The assets of the City of Hopkins exceeded liabilities by approximately $64.1 million. Of
this amount, (unrestricted net assets), approximately $7.4 million may be used to meet the
City’s ongoing obligations to citizens and creditors.
The City’s total net assets increased by approximately $1.7 million.
As of the close of the current fiscal year, the City of Hopkins governmental funds reported
combined ending fund balances of approximately $15.0 million, a decrease of
approximately $1.1 million in comparison with the prior year. The decrease was primarily
due to payment on bonds as a result of a refunding bond sale in late 2010. Approximately
$5.4 million of fund balance is available for spending at the City’s discretion (assigned or
unassigned fund balance).
As of December 31, 2011, unassigned fund balance for the General Fund was approximately
$4.3 million, or 42% of total general fund expenditures.
The City of Hopkins total debt decreased by approximately $3.56 million during the current
fiscal year due to bond refunding payments and scheduled bond maturities.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Hopkins basic
financial statements. The City of Hopkins basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements.
The government-wide financial statements are designed
to provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a
private-sector business.
The statement of net assets presents information on all of the City of Hopkins assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Hopkins is
improving or deteriorating.
The statement of activities presents information showing how the City net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
15
Both of the government-wide financial statements distinguish functions of the City of Hopkins that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Hopkins
include general, public safety, highways, streets, culture, recreation, urban redevelopment, housing,
health and welfare. The business-type activities of the City of Hopkins include water, sewer, refuse,
storm sewer utilities, an ice arena, and a housing and redevelopment authority.
The government-wide financial statements include the City of Hopkins itself, but also a legally
separate Hopkins Housing and Redevelopment Authority. Although the Hopkins Housing and
Redevelopment Authority is legally separate, it functions for all practical purposes as a department
of the City of Hopkins, and therefore has been included as an integral part of the primary
government.
The government-wide financial statements can be found on pages 30-31 of this report.
Fund financial statements.
A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Hopkins, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City of Hopkins can be
divided into two categories: governmental funds and proprietary funds.
Governmental funds.
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a City’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Hopkins maintains thirty-three individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the General Fund, Economic
Development, Tax Increment District 2-11, Arts Center, 2005-B Taxable Tax Increment Bonds of
1997 Refunding Bonds, 2009-B Housing Improvement Bonds of 1999A Refunding Bonds, 2009-B
Housing Improvement Bonds of 1999B Refunding Bonds, Municipal State Aid Construction fund,
and Permanent Improvement Revolving fund all of which are considered to be major funds. Data
from the other twenty-four funds are combined into a single, aggregated presentation. Individual
fund data for each of these non-major governmental funds is provided in the form of combining
statements elsewhere in this report.
16
The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special
revenue funds except for the Community Development Block Grant and E-911 Service funds. A
budgetary comparison statement has been provided for the General fund and major special revenue
funds and schedules are provided for other funds to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 32-46 of this report.
Proprietary funds.
The City of Hopkins maintains two types of proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the government-
wide financial statements. The City of Hopkins uses enterprise funds to account for its water,
sewer, refuse, storm sewer utilities, the pavilion ice arena, and the housing and redevelopment
authority. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City of Hopkins various functions. The City of Hopkins uses internal service
funds to account for replacement of equipment, insurance deductibles and compensated absences.
Because all of these services predominantly benefit governmental rather than business-type
functions, they have been included within governmental activities in the government-wide financial
statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, storm sewer and pavilion/ice arena operations, all of which are
considered to be major funds of the City of Hopkins. Data from the other two enterprise funds are
combined into a single, aggregated presentation. Individual fund data for each of these non-major
proprietary funds is provided in the form of combining statements elsewhere in this report. The
internal service funds are combined into a single, aggregated presentation in the proprietary fund
financial statements. Individual fund data for the internal service funds is also provided in the form
of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 48-52 of this report.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial
statements can be found on pages 54-78 of this report.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents
certainrequired supplementary information. Required supplementary information can be found on
page 80 of this report.
The combining statements referred to earlier in connection with non-major governmental funds,
non-major proprietary funds and internal service funds are presented immediately following the
required supplementary information. Combining and individual fund statements and schedules can
be found on pages 81-116 of this report.
17
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Hopkins, assets exceeded liabilities by $64,072,453 at the close
of the most recent fiscal year.
Approximately three quarters (78%) of the City of Hopkins net assets are reflected in its investment
in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to
acquire those assets that are still outstanding. The City of Hopkins uses these capital assets to
provide services to citizens. The net capital assets are not available for future spending. Although
the City of Hopkins investment in its capital assets is reported net of related debt, it should be noted
that the resources needed to repay this debt must be provided from other sources.
City of Hopkins Net Assets
December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201120102011201020112010
Assets
Current and other
23,924,306$27,767,531$1,260,095$2,393,028$25,184,401$30,160,559
$
assets
46,439,544 45,988,219 20,918,467 20,515,860 67,358,011 66,504,079
Capital assets
Total assets70,363,850 73,755,750 22,178,562 22,908,888 92,542,412 96,664,638
Liabilities
Other liabilities1,147,322 6,388,967 363,285 1,617,594 1,510,6078,006,561
Long-term liabilities
22,951,033 22,339,986 4,008,319 3,938,937 26,959,352 26,278,923
outstanding
Total 24,098,355 28,728,953 4,371,604 5,556,531 28,469,959 34,285,484
Net Assets
Invested in capital
assets, net of
31,666,432 32,823,582 17,075,284 16,279,028 48,741,71649,102,610
related debt
Restricted8,250,360 8,613,114 - - 8,250,3608,613,114
Unrestricted6,348,703 3,590,101 731,674 1,073,329 7,080,3774,663,430
Total net $46,265,495 $45,026,797 $17,806,958 $17,352,357 $64,072,453 $62,379,154
A portion of the City of Hopkins net assets represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($7,394,413)
may be used to meet the government’s ongoing obligations to citizens and editors.
At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its governmental
and business-type activities. The City’s net assets increased by $1,693,299 during the current fiscal
year.
Governmental and business-type activities.
Governmental activities increased the City of
Hopkins net assets by $1,238,698 and business-type activities increased net assets by $454,601.
Key elements of the increases are as follows:
18
City of Hopkins Changes in Net Assets
For the Year Ended December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201120102011201020112010
Revenues:
Program revenues:
Charges for services $ 1,174,120 $ 791,246 $ 5,618,029 $ 5,433,821 6,792,149$$ 6,225,067
Operating grants and
contributions 2,325,158 1,894,777 190,442 216,596 2,515,600 2,111,373
Capital grants and
contributions 1,751,464 567,370 28,250 328,515 1,779,714 895,885
General revenues:
Property taxes 9,952,156 9,827,814 - - 9,952,156 9,827,814
Tax increments 2,239,668 2,147,517 - - 2,239,668 2,147,517
Grants and contributions
not restricted 312,519 306,215 - - 312,519 306,215
Investment earnings 108,956 121,229 8,319 9,138 117,275 130,367
Gain on sale of capital assets 42,343 - 26,879 - 69,222 -
Total revenues 17,906,384 15,656,168 5,871,919 5,988,070 23,778,303 21,644,238
Expenses:
General government 1,719,970 1,693,275 - - 1,719,970 1,693,275
Public safety 6,213,995 6,243,813 - - 6,213,995 6,243,813
Health and welfare 170,018 180,895 - - 170,018 180,895
Highways and streets 3,332,067 3,054,311 - - 3,332,067 3,054,311
Urban redevelopment and
housing 2,859,900 1,914,779 - - 2,859,900 1,914,779
Culture and recreation 1,644,834 1,505,513 - - 1,644,834 1,505,513
Interest on long-term debt 871,902 895,874 - - 871,902 895,874
Water - - 1,263,835 1,196,607 1,263,835 1,196,607
Sewer - - 1,800,126 1,844,309 1,800,126 1,844,309
Storm sewer - - 407,057 420,619 407,057 420,619
Refuse - - 778,044 738,398 778,044 738,398
Pavilion/ice arena - - 416,166 398,354 416,166 398,354
Housing and redevelopment
authority - - 607,090 542,324 607,090 542,324
Loss on sale of capital assets - 8,196 - 340 - 8,536
Total expenses 16,812,686 15,496,656 5,272,318 5,140,951 22,085,004 20,637,607
Increase in net assets before transfers 1,093,698 159,512 599,601 847,119 1,693,299 1,006,631
Transfers 145,000 145,000 (145,000) (145,000) - -
Increase in net assets1,238,698 304,512 454,601 702,1191,693,299 1,006,631
Net assets - January 1 45,026,797 44,722,285 17,352,357 16,650,238 62,379,154 61,372,523
Net assets - December 31 $46,265,495 $45,026,797 $17,806,958 $17,352,357 $64,072,453 $62,379,154
19
Governmental activities:
Property taxes increased in 2011 as a result of debt service levies and
increased operating costs. The City also received a number of program grants for specific programs
in addition to state municipal aid for a major street improvement project. Net assets increased
primarily due to conservative spending, grants for development activities and increased fee and
license revenue.
20
Business-type activities.
Business-type activities had an increase in net assets due to an ongoing
effort to ensure that rates are adequate to fund all expenditures. A utility master plan was developed
in 2007 with scheduled rate increases that are designed to cover operations, debt and capital needs
over the next 15 years. As a result the utility funds are in a stronger financial position than they
were a couple years ago.
21
Financial Analysis of the City’s Funds
As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds.
The focus of the City of Hopkins governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information
is useful in assessing the City of Hopkins financing requirements. In particular, unassigned fund
balance may serve as a useful measure of a City’s net resources available for spending at the end of
the fiscal year.
As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined
ending fund balances of $15,042,235, a decrease of $1,068,368 in comparison with the prior year.
The key factor of the decrease is payment on bonds for which refunding issued were sold in late
2010. Fund balance was also used for development projects, payment of long-term debt and use of
previous years grant revenue for current years expenditures.
Approximately 36% of fund balance ($5,443,195) constitutes assigned and unassigned fund balance,
which is available for spending at the City’s discretion. The remainder of fund balance is non-
spendable, restricted or committed to indicate that it is not available for new spending because it is
either in a non-spendable form (inventory, prepaid expenses, rehabilitative loans, or property held
for resale); restricted (debt service, tax increment projects) or has already been committed (for
economic development, property purchases, parking, communication activities, and the Depot
Coffee House operations).
The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal
year, unassigned fund balance of the general fund was $4,266,048. This represents 84.8% of the
general fund’s total fund balance. As a measure of the general fund’s liquidity, it may be useful to
compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents approximately 41.9% of total general fund expenditures while
total fund balance represents approximately 49.5% of that same amount.
The fund balance of the City of Hopkins general fund increased by $778,951 during the current
fiscal year. Revenues exceeded expenditures by $197,274 before transfers. This increase was a
result of conservative spending and an increase in license and charges for service revenue as a result
of change in the economy from the previous year.
The Economic Development fund has a total fund balance of $2,864,266 of which $2,635,961 is
non-spendable and $228,305 is committed for economic development. The fund balance increased
by $199,502 primarily as a result of a $400,000 development grant received for development
activities.
The Tax Increment District 2-11 fund has a total fund balance of $814,797 all of which is restricted
for the tax increment district activities. The fund balance increased by $374,038 as a result of higher
than expected tax increment revenues.
The Arts Center fund has a total fund balance of ($1,067,889) of which $125 is nonspendable and
($1,068,014) is unassigned. The fund balance deficit increased by $96,565 as the Arts Center
struggles to balance quality programming with ticket sales, decreased donations and related
22
operating expenditures. Staff and the Friends of the Hopkins Center for the Arts, a non-profit
associated with the Arts Center, continue working to identify significant donors and corporate
sponsors to underwrite arts programming and decrease the deficit.
The 2009B Housing Improvement refunding bonds of 1999A bond fund has a total fund balance of
$252,896 all of which is restricted for the payment of debt service. The fund balance increased by
$23,038 as special assessment revenues exceeded current debt payment requirements.
The 2009B Housing Improvement refunding bonds of 1999B bond fund has a total fund balance of
$496,644, all of which is restricted for the payment of debt service. The fund balance increased by
$51,325 as special assessment revenues exceeded current debt payment requirements.
The 2005B Refunding Taxable Tax Increment Bonds of 1997 bond fund has a total fund balance of
$383,279, all of which is restricted for the payment of debt service. The fund balance increased by
$22,555 as special assessment revenues exceeded current debt payment requirements.
The Municipal State Aid Construction fund has a total fund balance of $1,666,332 which is assigned
for construction projects. The fund balance increased by $363,224 as a result of state aid revenues
received for specific projects. Revenues in this fund are derived from the State of Minnesota
municipal state aid fund annual allotments. Funds remain in our account until an eligible project
occurs at which time funding is drawn down from Hopkins’ account.
The Permanent Improvement Revolving fund has a total fund balance of $563,533 which is assigned
for construction projects. The fund balance decreased by $1,250,897 as bond funds received in
2010 were used for current year projects. Revenues in this fund are derived from special
assessments and taxes.
Proprietary funds.
The City of Hopkins proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
Unrestricted net assets of the Water fund at the end of the year amounted to ($475,499). The
unrestricted net assets are used to pay for infrastructure improvements and have resulted in a
negative unrestricted net asset position. The city plans to address this shortfall with the issuance of
revenue bonds in mid-2012. The increase in net assets amounted to $134,679 and is due to
operating revenues exceeding operating expenses. A utility master plan was prepared in 2007 to
address the funding shortage and prepare a rate structure that will sustain the water fund in addition
to providing for future capital expenditures. The new rate structure which calls for modest annual
increases in water rates was implemented in 2008 and along with conservative spending we are
seeing the results of the study impacting the water funds financial status.
Unrestricted net assets of the Sewer fund at the end of the year amounted to $111,183. The
unrestricted net assets are used to pay for infrastructure improvements. The increase in net assets
amounted to $39,244 and is due to operating revenues exceeding operating expenses. A utility
master plan was prepared in 2007 to address the funding shortage and prepare a rate structure that
will sustain the sewer fund in addition to providing for future capital expenditures. The new rate
structure which calls for modest annual increases in sewer rates was implemented in 2008 and along
with conservative spending we are seeing the results of the study impacting the sewer funds
financial status.
23
Unrestricted net assets of the Storm Sewer Utility fund at the end of the year amounted to $402,950.
The unrestricted net assets are used to pay for infrastructure improvements. The growth in net
assets amounted to $278,469 and is due to operating revenues exceeding operating costs.
Unrestricted net assets of the Pavilion/Ice Arena fund at the end of the year amounted to ($84,485).
The unrestricted net assets are used to pay for operating costs of the Pavilion. Infrastructure costs
are currently funded by the Capital Improvement Fund due to lack of available funds. Net assets
decreased by $28,845; however the Pavilion continues to work towards eliminating this negative
position. User rates have been adjusted and rentals for the facility are actively being sought to
increase revenues during the non-ice season. Expenditures are closely monitored and energy saving
features have been added to decrease energy costs.
General Fund Budgetary Highlights
The difference between the general fund original budget and the final amended budget resulted in an
increase of $1,750 to account for a grant received and the related expenditures. In addition, there
were several departmental budget changes which did not increase the total expenditure budget. The
reason for the inter-departmental amendments was a transfer between expenditure categories to
match actual expenditures. The budget changes can be summarized as follows:
Increase in the fire department budget in both revenues and expenditures to account for a
grant of $1,750 and the related expenditures.
Several departments had small budget modifications, however when departments were
combined for reporting purposes the budget changes balanced out and no change was noted.
During the year revenues were over budgetary estimates by $199,751 due to increases in license and
permit revenue, fines, federal grants, recreation fees and donations. This was offset by a decrease
in interest income.
Expenditures were under the budget by $118,326 and was due conservative spending, delayed hiring
of open positions, reduced maintenance costs, and energy conservation measures.
The net effect of these budget impacts was a net budgetary increase in fund balance of $909,754
after transfers. A year end transfer of $591,677 from a former special revenue fund to the general
fund added to the overall budgetary increase. The activities of the housing rehab fund are better
suited for inclusion in the general fund and therefore the remaining assets were transferred at year
end.
(remainder of page left blank intentionally)
24
Capital Asset and Debt Administration
Capital assets.
The City of Hopkins investment in capital assets for its governmental and business
type activities as of December 31, 2011, amounts to $67,358,011 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, improvements, vehicles, machinery and
equipment, park facilities, roads, highways, bridges, distribution systems and construction in
progress.
Major capital asset events during the current fiscal year included the following:
Construction in progress additions totaled $2,402,195 for infrastructure projects.
A total of $5,248,378 of assets was transferred from construction in progress to other
improvements as infrastructure projects were completed and put into service.
Vehicle and equipment purchases totaled $576,165. Major purchases included public works
equipment, public safety vehicles and equipment.
Vehicle and equipment deletions totaled $425,160. Deletions were a result of scheduled
replacements of public works, public safety vehicles and equipment.
City of Hopkins Capital Assets
(net of depreciation)
December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201120102011201020112010
Land$5,805,711$5,805,711$228,463$167,789$6,034,174$5,973,500
Buildings15,070,63515,525,9593,773,6243,229,04618,844,25918,755,005
Infrastructure- - 9,024,2038,977,4439,024,2038,977,443
Improvements20,078,68317,974,0366,268,8604,744,97026,347,54322,719,006
Vehicles1,769,8721,802,204444,919296,4062,214,7912,098,610
Equipment1,283,3401,456,676145,754186,9421,429,0941,643,618
Construction in progress2,431,3033,423,6331,032,6442,913,2643,463,9476,336,897
$46,439,544$45,988,219$20,918,467$20,515,860$67,358,011$66,504,079
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 65-66
of this report.
Long-term debt.
At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $25,680,000. Of this amount, $2,185,000 comprises housing and redevelopment
authority lease revenue debt, $3,790,000 comprises tax increment redevelopment debt, and
$12,390,000 comprises general obligation and special assessment debt, all of which is backed by the
full faith and credit of the government. Another $3,510,000 is special fees debt for which the
government is liable in the event of default by the property owners subject to the fees. The
remainder of the City of Hopkins debt, $3,805,000, represents bonds secured solely by specified
revenue sources (i.e., revenue bonds).
25
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201120102011201020112010
HRA lease revenue bonds$2,185,000 $2,315,000 $- $- $2,185,000 $2,315,000
G.O. Tax increment bonds3,790,000 4,400,000 - 3,790,000- 4,400,000
G.O. Housing fee bonds3,510,000 3,930,000 - 3,510,000- 3,930,000
G.O. Redevelopment bonds 110,000- 110,000-
- -
G.O. Capital improvement bonds8,005,000 8,515,000 - 8,005,000- 8,515,000
G.O. Special assessment bonds4,385,000 4,885,000 - 4,385,000- 4,885,000
Revenue bonds - 3,805,000- 5,080,000
3 ,805,0005,080,000
$21,875,000$24,155,000$3,805,000$5,080,000$25,680,000$29,235,000
The City of Hopkins total bonded debt decreased by $3,555,000 or 12.2% during the current fiscal
year. The decrease is due the net effect of scheduled bond maturities and bond called as a result of
refunding bonds sold the previous year.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are
serviced by General and Tax Increment levies and also by fees assessed against benefited properties.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
the Water and Storm Sewer Utility Funds current revenues.
City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and
repayment monies are generated by the collection of special assessments and general levies.
Housing and Redevelopment Authority bonds are backed by the full faith, credit and taxing power
of the HRA, and repayment monies are generated by annual lease appropriations from the City.
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable
market value. At December 31, 2011, the debt limit for the City is $43,805,930. Of the total debt,
$9,548,984 of general obligation and revenue bonds is applicable to the limit. The legal debt margin
is $34,256,946.
The City of Hopkins was upgraded to a “AA” rating from Standard & Poor’s in December 2009 and
maintains an “A1” rating from Moody’s.
Additional information on the City of Hopkins long-term debt can be found in note 9 on pages 68-
72 of this report.
Economic Factors and Next Year’s Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2012 budget.
Utility charges were reviewed and as a result of the utility master plan, rates for the water and sewer
will be increased by modest amounts annually at least through 2017. The tax capacity rate increased
as a result of economic conditions. The State of Minnesota restructured the market value homestead
property tax credit program changing the program from a direct credit against homeowner’s
26
property taxes to a market value exclusion resulting in less of their property value being subject to
property taxes. The end result is to approximate the credit a homeowner received in previous years,
however 2012 being the first year of the program the City is uncertain how it will impact their
property tax revenues. This was taken into consideration when determining total revenues. Also
taken into consideration is that the City’s population would remain constant. As a result of these
factors the City prepared a budget for 2012 that included a modest increase of 2.5% in expenditures
that included no wage increases for employees, delayed hiring of vacant positions, non-essential
capital items eliminated and inflationary increases in some departments.
During the current fiscal year, unassigned fund balance in the general fund increased to $4,266,048
or 42% of general fund expenditures. The Office of the State Auditor recommends unassigned fund
balances no less than five months of operating expenditures. The City is meeting the
recommendation for the general fund. The unassigned fund balance is used to pay for the City’s
general fund obligations until it receives its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for
all those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Director, City of Hopkins, 1010 First Street South, Hopkins, MN 55343.
27
28
BASIC FINANCIAL STATEMENTS
29
City of Hopkins
Statement of Net Assets
December 31, 2011
Primary Government
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Assets
Cash and cash equivalents$ 12,679,822$ 1,510,499$ 14,190,321
Taxes receivable250,169-250,169
Special assessments receivable5,539,142-5,539,142
Accounts receivable281,670390,010671,680
Intergovernmental receivable147,90883,210231,118
Interest receivable47,5224,35951,881
Internal balances871,569(871,569)-
Inventories111,51628,847140,363
Prepaid items63,34627063,616
Deferred charges 340,80533,089373,894
Temporarily Restricted Assets
Cash and cash equivalents1,761,739-1,761,739
Long-term receivables12,00081,38093,380
Land held for resale1,817,098-1,817,098
Capital assets, non depreciable8,237,0141,261,1079,498,121
Capital assets, net of accumulated depreciation38,202,53019,657,36057,859,890
Total assets70,363,85022,178,56292,542,412
Liabilities
Accounts payable361,819253,563615,382
Salaries payable361,32135,305396,626
Due to other governments4,59126,78931,380
Accrued interest payable341,54144,268385,809
Unearned revenue78,0503,36081,410
Non current liabilities:
Compensated absences due within one year749,57996,401845,980
Compensated absences due in more than one year23,20441,95265,156
Net OPEB liability126,18926,783152,972
Capital lease due within one year39,158-39,158
Capital lease due in more than one year279,083-279,083
Bonds due within one year1,635,000450,0002,085,000
Bonds due in more than one year20,098,8203,393,18323,492,003
Total liabilities24,098,3554,371,60428,469,959
Net Assets
Invested in capital assets, net of related debt31,666,43217,075,28448,741,716
Restricted for:
Economic development1,486,458-1,486,458
Park improvements113,340-113,340
Public safety50-50
Debt service6,650,512-6,650,512
Unrestricted6,348,703731,6747,080,377
Total net assets$ 46,265,495$ 17,806,958$ 64,072,453
The notes to the financial statements are an integral part of this statement.
30
-131,471 131,471 -38,823 38,823 -396,360 396,360 -205,074 205,074 9,952,156 -9,952,156 2,239,668 -2,239,668 312,519 -312,519 108,956 8,319 117,275 42,343 26,879 69,222 1,238,698 454,601
1,693,299 Net assets - beginning45,026,79717,352,35762,379,154 $ 46,265,495 $ 17,806,958 $ 64,072,453
12,800,642 (109,802)12,690,840
145,000 (145,000)-
$ 1,719,970 $ - $ (1,341,360) $ - $ (1,341,360)6,213,995 -(5,161,670)-(5,161,670)170,018 -(5,782)-(5,782)3,332,067 1,751,464
(1,482,196)-(1,482,196)2,859,900 -(1,781,475)-(1,781,475)1,644,834 -(917,559)-(917,559)871,902 -(871,902)-(871,902)-(30,418)(30,418)-(176,907)(176,907)(10,997,541)
16,812,686 1,751,464 (11,561,944)-(11,561,944)
403
,
403 564
Total
Net(Expense) Revenue and
es in Net Assets
$ 1,779,714 (11,561,944)564,403
Business-type
,
Activitie
250 -564
s
g
Chan
Governmental
Activities
255,188 28,250
Capital Grants
--43,697 --
--
Contributions
,
28
and
For the Year Ended December 31, 2011
ram Revenues
Grants & contributions not restricted
$ 336,498
41,815 122,421 Urban Redevelopment and Housing206,916 871,509 5,618,029 190,442 $ 6,792,149 $ 2,515,600
----
865,71424,888104,1282,325,158146,745
Statement of Activities
Contributions
Grants and
Gain on disposal of capital assets
Unrestricted investment earnings
Total general revenuesChange in net assets
Operating
kins
p
of Ho
g
Pro
Net assets - ending
y
General Government$ 42,112
Total Governmental activities1,174,120
Highways and Streets73,519
Cit
Tax increments
Interest on long-term debt-
623,1471,395,3061,838,949803,417939,421385,748
186,611
Property taxes
Charges for
General revenues:
Services
Transfers
The notes to the financial statements are an integral part of this statement.
1,263,8351,800,126Housing and Redevelopment Authority607,090318Total Government22,085,004
407,057778,044416,166
enses
,
272
,
p
5
Ex
$
e activitie
s
Governmental Activities:
Business-type Activities:
Culture and Recreation
yp
Total Business-t
Health and Welfare
Pavilion/Ice Arena
rams
Public SafetyStorm Sewer
g
Functions/Pro
Refuse
Sewer
Water
31
City of Hopkins
1 of 2
Balance Sheet
Governmental Funds
December 31, 2011
HousingHousing
ImprovementImprovement
Bonds of 1999A Bonds of 1999B
EconomicTax Increment Refunding Bonds Refunding
General FundDevelopmentDistrict 2-11 Arts Centerof 2009BBonds of 2009B
Assets
Cash and cash equivalents $ 3,086,457 $ 250,355 $ 491,246 $ 229,222$ 812,636$ 100
Taxes receivable 213,400 - - 5,571 - -
Special assessments receivable - 1,161,851 2,064,232 - - -
Accounts and rehabilitative loans receivable 149,516 - - 11,551 16
24,101
Due from other governments 79,321 - - 1,250 - -
Interest receivable 16,233 854 1,676 752 2,777
-
Due from other funds 2,009,862 - - 818,863 - -
Inventories 111,516 - - - - -
Prepaid items 62,971 - - - - 125
Long-term receivable - - - - -
-
Cash - temporarily restricted - - - - -
-
Property held for resale - - - 1,817,098 - -
Total assets $ 5,729,276 $ 1,413,060 $ 2,557,154 $ 2,884,307$815,429$ 24,326
Liabilities and fund balances
Liabilities:
Accounts payable $ 153,954 $ 187 $ 371 $ 1,673 $ 632 $ 20,513
Salaries payable 334,634 - - 5,397
- 12,683
Accrued interest payable - - - - -
-
Due to other funds - - - - -
1,058,216
Due to other governments 4,230 - - - - 316
Deferred revenue 204,247 1,159,977 2,060,139 12,971 - 487
Total liabilities 697,065 1,160,164 2,060,510 20,041 632 1,092,215
Fund balances:
Non-spendable174,487 - - 125 2,635,961 -
Restricted - 252,896 496,644 - 814,797 -
Committed - - - 228,305 - -
Assigned 591,676 - - - - -
Unsssigned 4,266,048 - - - -
(1,068,014)
Total fund balances 5,032,211 252,896 2,864,266 814,797 (1,067,889) 496,644
Total liabilities and fund balances $ 5,729,276 $ 1,413,060 $ 2,557,154 $ 815,429
$ 2,884,307 $ 24,326
32
City of Hopkins
2 of 2
Balance Sheet
Governmental Funds
December 31, 2011
Taxable Tax
Increment Bonds
of 1997 PermanentNon-majorTotal
Refunding Bonds Municipal State ImprovementGovernmentalGovernmental
of 2005BAid ConstructionRevolving FundFundsFunds
Assets
Cash and cash equivalents $ 379,049 $ 3,119,075 10,719,242$ 1,662,371 $ 688,731$
Taxes receivable - 31,198 250,169
- -
Special assessments receivable 1,058,560 3,110 5,539,142 - 1,251,389
Accounts and rehabilitative loans receivable - 95,958 281,406 -
264
Due from other governments - 53,105 147,908 - 14,232
Interest receivable 1,293 10,651 40,528 5,671 621
Due from other funds - - 2,828,725 - -
Inventories - - 111,516 - -
Prepaid items - 250 63,346 - -
Long-term receivable - 12,000 12,000 -
-
Cash - temporarily restricted - 1,761,739 1,761,739 - -
Property held for resale - - 1,817,098
- -
Total assets $ 1,438,902 $ 5,087,086 $ 23,572,819 $ 1,668,042$ 1,955,237
Liabilities and fund balances
Liabilities:
Accounts payable $ 300 $ 20,048 347,003$ 1,710 $ 147,615 $
Salaries payable - 8,607 361,321 -
-
Accrued interest payable - 1,301 1,301 - -
Due to other funds - 944,390 2,002,606 - -
Due to other governments - 45 4,591 - -
Deferred revenue 1,055,323 76,529 5,813,762 - 1,244,089
Total liabilities 1,055,623 1,050,920 8,530,584 1,710 1,391,704
Fund balances:
Non-spendable - - - 2,848,82938,256
Restricted 383,279 3,876,246 5,823,862 - -
Committed - 698,044 926,349 - -
Assigned - 272,471 3,094,012 1,666,332 563,533
Unsssigned - (848,851) - - 2,349,183
Total fund balances 383,279 4,036,166 15,042,235 1,666,332 563,533
Total liabilities and fund balances $ 1,438,902 $ 5,087,086 23,572,819$ 1,668,042 $
$ 1,955,237
The notes to the financial statements are an integral part of this statement.
33
City of Hopkins
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Assets
December 31, 2011
Fund balances of governmental funds $ 15,042,235
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital Assets used in governmental activities are not financial resources and,
therefore, not reported in the governmental funds.
Capital assets 63,648,598
Less accumulated depreciation(19,942,739)
Other long-term assets not available to pay current period expenditures and,
5,735,712
therefore, are deferred in the governmental funds.
Internal service funds are used by the City to charge the costs of certain
activities, such as replacement of City vehicles and equipment. The assets and
liabilities of the internal service funds are included in the governmental
3,638,221
activities in the statement of net assets.
Long-term liabilities, including bonds payable and accrued interest payable, are
not due and payable in the current period and, therefore, are not reported in the
overnmental funds.
g
Long-term liabilities (22,197,337)
Less deferred charges340,805
Net assets of governmental
$46,265,495
The notes to the financial statements are an integral part of this statement.
34
35
City of Hopkins
Statement of Revenues, Expenditures, and Changes in Fund Balances
1 of 2
Governmental Funds
For the Year Ended December 31, 2011
Housing
HousingImprovement
ImprovementBonds of
Bonds of 1999B
1999ARefunding
EconomicTax Increment RefundingBonds of
General FundDevelopmentDistrict 2-11Arts CenterBonds of 2009B2009B
Revenues
Property taxes $ 121,101 $ - $ - $ -
$ 8,611,399 $ -
Tax increments-2,030,408 ----
Special assessments---136,845
-251,020
Intergovernmental883,452 ---479,079-
Fees, licenses and permits----
460,011-
Charges for services--475,494 -297,170-
Fines----
174,303-
Interest18,934 4,989 -1,471 20,8762,919
Other miscellaneous revenues37,764 169,152 69,854 -
327,187-
Total revenues1,061,251 2,204,549 545,348 138,316
10,370,025253,939
EXPENDITURES
Current:
Generalgovernment1,494,234---469779
Public safety----
5,701,777-
Health and welfare168,202-----
Highways and streets----
2,275,670-
Urban redevelopment and housing-800,749 1,642,511 ---
Culture and recreation--789,833 -
525,591-
Debt service:
Principal retirement----80,000140,000
Interest and fiscal fees---34,809,835
-61
Capital outlay---7,277--
Total expenditures800,749 1,642,511 789,833 115,278
10,172,751202,614
Excess (deficiency) of revenues
over expenditures260,502 562,038 (244,485)23,038
197,27451,325
Other financing sources (uses)
Refunded bond payment------
Transfer in--147,920 -591,677-
Transfer out(10,000)(61,000)(188,000)--
-
Total other financing sources (uses )(61,000)(188,000)147,920 -
581,677-
Net change in fund balances199,502 374,038 (96,565)23,038 778,95151,325
Fund balances -- beginning2,664,764440,759(971,324)229,8584,253,260445,319
Fund balances -- ending $ 2,864,266 $ 814,797 $ (1,067,889) $ 252,896 $ 5,032,211 $ 496,644
36
City of Hopkins
Statement of Revenues, Expenditures, and Changes in Fund Balances
2 of 2
Governmental Funds
For the Year Ended December 31, 2011
Taxable Tax
Increment Bonds Permanent
of 1997 Municipal State ImprovementNon-major
Total
Refunding Bonds AidRevolvingGovernmental
Governmental
of 2005BConstructionFundFunds
Funds
Revenues
Property taxes $ - $ - $ 10,038,514
$ - $ 1,306,014
Tax increments-- 2,239,668 -209,260
Special assessments171,594 - 1,446,922 788,48498,979
Intergovernmental-421,691 1,931,333 -147,111
Fees, licenses and permits-- 691,962 -231,951
Charges for services-- 908,106 -135,442
Fines-- 174,303 --
Interest2,183 12,167 94,409 6,440 24,430
Other miscellaneous revenues-- 701,683 -97,726
Total revenues173,777 433,858 18,226,900 794,924 2,250,913
EXPENDITURES
Current:
Generalgovernment732--101,546 1,597,760
Public safety---193,863 5,895,640
Health and welfare---- 168,202
Highways and streets-11,34019,44830,560 2,337,018
Urban redevelopment and housing---307,912 2,751,172
Culture and recreation--- 1,416,601
101,177
Debt service:
Principal retirement105,000--1,740,000 2,065,000
Interest and fiscal fees45,490--710,050 852,184
Capital outlay-59,294 2,141,691 1,775,662299,458
Total expenditures151,222 70,634 19,225,268 3,484,566
1,795,110
Excess (deficiency) of revenues
over expenditures22,555 363,224 (998,368)
(1,000,186)(1,233,653)
Other financing sources (uses)
Refunded bond payment-- (215,000)-(215,000)
Transfer in-- 1,504,822 -765,225
Transfer out-- (1,359,822)(850,111)
(250,711)
Total other financing sources (uses )--(70,000)
(250,711)(299,886)
Net change in fund balances22,555 363,224 (1,068,368)(1,250,897)(1,533,539)
Fund balances -- beginning360,7241,303,10816,110,6031,814,4305,569,705
Fund balances -- ending $ 383,279 $ 1,666,332 $ 15,042,235 $ 563,533 4,036,166$
The notes to the financial statements are an integral part of this statement.
37
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended December 31, 2011
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances --total $ (1,068,368)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period. 585,484
The net effect of various miscelleneous transactions involving capital assets
(i.e. sales, trade-ins, and donations) is a decrease to net assets. (268)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds (377,404)
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt uses the current financial resources of
governmental funds. Neither transaction, however, has any effect on net assets. Also,
governmental funds report the effect of issuance costs, premiums, discounts, and similar items
when debt is first issued, whereas these amounts are deferred and amortized in the statement
of activities. This amount is the net effect of these differences in the treatment of long-term
debt related items. 2,211,881
f
External revenues and expenditures of the internal service funds reported in the statement o
activities are not reported as revenues and expenditures in governmental funds. (112,627)
Change in net assets of governmental activities $ 1,238,698
The notes to the financial statements are an integral part of this statement.
38
City of Hopkins
1 of 5
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31, 2011
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Revenues
Taxes
General property taxes$7,504,698$7,504,698$7,507,124$2,426
Fiscal disparities1,125,8661,125,8661,104,275(21,591)
Total Taxes8,630,5648,630,5648,611,399(19,165)
Licenses and permits
Business 140,015140,015127,769(12,246)
Non-business 234,275234,275332,24297,967
Total Licenses and permits374,290374,290460,01185,721
Intergovernmental
Market value aid credit - -2,8212,821
State grants179,370179,370202,87423,504
Insurance premium - police177,700177,700166,858(10,842)
Insurance premium - fire85,00085,00065,039(19,961)
Federal grants - -34,57234,572
Other grants -1,7506,9155,165
Total Intergovernmental442,070443,820479,07935,259
Fines and forfeitures
Court fines141,000141,000174,30333,303
Charges for services
General government21,30021,30038,39217,092
Public safety121,150121,150169,34748,197
Public works2,2502,2506,9944,744
Recreation49,50049,50082,43732,937
Total Charges for services194,200194,200297,170102,970
Other
Investment earnings75,00075,00020,876(54,124)
Franchise fees290,000290,000289,188(812)
Miscellaneous21,40021,40037,99916,599
Total Other386,400386,400348,063(38,337)
Total Revenues10,168,52410,170,27410,370,025199,751
Expenditures
General Government:
Mayor and council
Salaries and employee benefits26,49726,49726,569(72)
Materials, supplies and services45,05045,05052,342(7,292)
Total71,54771,54778,911(7,364)
39
City of Hopkins
2 of 5
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31, 2011
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
General Government, (continued):
Administrative services
Salaries and employee benefits$497,584$497,584$427,506$70,078
Materials, supplies and services58,08658,08645,71512,371
Total555,670555,670473,22182,449
Less expenditures charged to other activities(104,000)(104,000)(104,000) -
Net451,670451,670369,22182,449
Finance
Salaries and employee benefits351,541351,541355,801(4,260)
Materials, supplies and services70,88070,88080,241(9,361)
Total422,421422,421436,042(13,621)
Less expenditures charged to other activities(219,178)(219,178)(225,655)6,477
Net203,243203,243210,387(7,144)
Legal Services
Materials, supplies and services135,000135,000140,213(5,213)
Municipal Building
Salaries and employee benefits128,997128,997128,738259
Materials, supplies and services205,821205,821184,60921,212
Total334,818334,818313,34721,471
Less expenditures charged to other activities(40,000)(40,000)(40,000) -
Net294,818294,818273,34721,471
Elections
Salaries and employee benefits32,40332,40320,44111,962
Materials, supplies and services17,81917,81910,7937,026
Total50,22250,22231,23418,988
City Clerk and Reception
Salaries and employee benefits111,536107,436110,416(2,980)
Materials, supplies and services18,82918,82924,768(5,939)
Total130,365126,265135,184(8,919)
Less expenditures charged to other activities(37,000)(37,000)(37,000) -
Net93,36589,26598,184(8,919)
Assessing
Salaries and employee benefits84,21384,21383,618595
Materials, supplies and services107,023107,023112,552(5,529)
Total191,236191,236196,170(4,934)
Less expenditures charged to other activities(24,000)(24,000)(24,000) -
Net167,236167,236172,170(4,934)
40
City of Hopkins
3 of 5
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31, 2011
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
General Government, (continued):
Planning and economic development
Salaries and employee benefits$128,404$128,404$124,752$3,652
Materials, supplies and services16,77816,7785,97710,801
Total145,182145,182130,72914,453
Less expenditures charged to other activities(20,000)(20,000)(20,000) -
Net125,182125,182110,72914,453
Total General Government
1,592,2831,588,1831,484,396103,787
Public Safety:
Police
Police Administration
Salaries and employee benefits386,554386,554406,234(19,680)
Materials, supplies and services94,06194,06188,8215,240
Net480,615480,615495,055(14,440)
Police Patrol and Investigation
Salaries and employee benefits2,527,8262,527,8262,463,10164,725
Materials, supplies and services332,027329,527355,173(25,646)
Total2,859,8532,857,3532,818,27439,079
Police Services
Salaries and employee benefits964,945964,945874,28190,664
Materials, supplies and services178,974178,974158,41020,564
Total1,143,9191,143,9191,032,691111,228
Total Police4,484,3874,481,8874,346,020135,867
Fire
Salaries and employee benefits514,036514,036508,5495,487
Materials, supplies and services324,222368,472395,526(27,054)
Total838,258882,508904,075(21,567)
Inspections
Salaries and employee benefits385,909385,909384,2351,674
Materials, supplies and services70,00974,10974,724(615)
Total455,918460,018458,9591,059
Total Public safety
5,778,5635,824,4135,709,054115,359
41
City of Hopkins
4 of 5
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31, 2011
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
Health and Welfare:
Inspections
Salaries and employee benefits$132,155$132,155$140,986$(8,831)
Materials, supplies and services28,53428,53427,2161,318
Total160,689160,689168,202(7,513)
Total Health and welfare
160,689160,689168,202(7,513)
Highways and Streets:
Public works buildings and equipment services
Salaries and employee benefits235,010235,010231,2043,806
Materials, supplies and services90,12890,12882,3717,757
Total325,138325,138313,57511,563
Less expenditures charged to other activities(213,000)(213,000)(212,760)(240)
Net112,138112,138100,81511,323
Public Works Administration and Engineering
Salaries and employee benefits335,309335,309329,8775,432
Materials, supplies and services41,97141,97133,1618,810
Total377,280377,280363,03814,242
Less expenditures charged to other activities(213,000)(213,000)(213,000) -
Net164,280164,280150,03814,242
Streets and Alleys
Salaries and employee benefits365,815365,815415,536(49,721)
Materials, supplies and services599,997599,997639,202(39,205)
Total965,812965,8121,054,738(88,926)
Less expenditures charged to other activities(112,000)(112,000)(112,000) -
Net853,812853,812942,738(88,926)
Snow and Ice Removal
Salaries and employee benefits120,716120,716144,589(23,873)
Materials, supplies and services84,89984,89972,09212,807
Capital outlay - -7,277(7,277)
Total205,615205,615223,958(18,343)
Municipal parks and tree service:
Salaries and employee benefits550,866550,866562,341(11,475)
Materials, supplies and services287,689287,689295,780(8,091)
Total838,555838,555858,121(19,566)
Total Highways and Streets
2,174,4002,174,4002,275,670(101,270)
42
City of Hopkins
5 of 5
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31, 2011
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
Culture and Recreation:
Activity center
Salaries and employee benefits$233,118$233,118$221,140$11,978
Materials, supplies and services100,353100,353116,394(16,041)
Total333,471333,471337,534(4,063)
Park and Recreation
Salaries and employee benefits50,36550,36537,09913,266
Materials, supplies and services149,356149,356150,958(1,602)
Total199,721199,721188,05711,664
Total Culture and Recreation
533,192533,192525,5917,601
Unallocated
Materials, supplies and services60,20010,2009,838362
Total Expenditures
10,299,32710,291,07710,172,751118,326
Other Financing Sources (Uses):
Transfers in: - -591,677591,677
Transfers out: -(10,000)(10,000) -
Total Other Financing (Uses)
-(10,000)581,677591,677
Net change in fund balance(130,803)(130,803)778,951909,754
Fund Balance - January 14,253,2604,253,2604,253,260 -
Fund Balance - December 31$4,122,457$4,122,457$5,032,211$909,754
The notes to the financial statements are an integral part of this statement.
43
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Economic Development Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
General property taxes$125,000$121,101$(3,899)
Intergovernmental revenue:
Market value aid credit -1,652
County grant -881,800881,800
Charges for services - - -
Investment earnings12,50018,9346,434
Other11,10037,76426,664
Total Revenues148,6001,061,251910,999
Expenditures:
Salaries and employee benefits167,254165,2092,045
Materials, supplies and services82,455675,540(593,085)
Capital outlay30,000 -30,000
Total279,709840,749(561,040)
Less expenditures charged to other activities(40,000)(40,000) -
Net239,709800,749(561,040)
Other Financing Sources (Uses):
Transfer to Art Center Fund(61,000)(61,000) -
Net change in fund balance(152,109)199,502351,611
Fund Balance - January 12,664,7642,664,764 -
Fund Balance - December 31$2,512,655$2,864,266$351,611
The notes to the financial statements are an integral part of this statement.
44
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Tax Increment District 2.11 Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax Increments$1,580,000$2,030,408$450,408
Investment earnings3,0004,9891,989
Other -169,152169,152
Total Revenues1,583,0002,204,549621,549
Expenditures:
Materials, supplies and services41,52349,798(8,275)
Capital outlay:
Site Improvements1,341,9751,592,713(250,738)
Total Expenditures1,383,4981,642,511(259,013)
Other Financing Sources (Uses):
Transfer out for debt service(188,000)(188,000) -
Net change in fund balance11,502374,038362,536
Fund Balance - January 1440,759440,759 -
Fund Balance - December 31$452,261$814,797$362,536
The notes to the financial statements are an integral part of this statement.
45
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Art Center Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Intergovernmental:
State grant $50,000$ -$(50,000)
Charges for services529,812$475,494$(54,318)
Other67,48069,8542,374
Total Revenues647,292545,348(101,944)
Expenditures:
Salaries and employee benefits385,264380,1665,098
Materials, supplies and services409,679409,66712
Total Expenditures794,943789,8335,110
Other Financing Sources
Transfer from other funds147,920147,920 -
Net change in fund balance269(96,565)(96,834)
Fund Balance - January 1(971,324)(971,324) -
Fund Balance - December 31$(971,055)$(1,067,889)$(96,834)
The notes to the financial statements are an integral part of this statement.
46
47
Due from other governments -860 - -82,35083,210 - Loan receivable - - -81,380 -81,380 - Inventory12,98412,4128552,59628,847 -
Prepaid expenses - - -270 -270 - Deferred charges11,6498,45512,985 - -33,089 - Land16,4475,15026,800 -180,066228,463 - Construction
in progress375,14386,581495,807 -75,1131,032,644 - Buildings and structures44,486 - -3,366,7704,395,1057,806,361 - Distribution system10,338,3417,026,8309,742,422
-2,58427,110,177 - Less accumulated depreciation(5,563,802)(3,769,029)(3,100,572)(1,190,439)(3,179,300)(16,803,142)(4,010,673)
Salaries payable12,8846,4711,0127,7267,21235,305 -Due to other funds504,036 - -99,592222,978826,606 -Due to other governments1,11419,268 -6125,79526,789 -Unearned
revenue3,360 - - - -3,360 -Revenue bonds - current 210,00060,000180,000 - -450,000 -
Governmental
UtilityUtilityUtilityIce ArenaTotalsService Funds
Cash and investments$ -$103,313$398,065$600$1,008,521$1,510,499$1,960,580 Accounts receivable116,121184,93111,97930,12646,853390,010264 Accrued interest receivable
-6591,821 -1,8794,3596,994 Due from other funds - - - - - -487 Advances to other funds - - - - - -44,963 Total
current assets129,105302,175412,720112,3761,142,1992,098,5752,013,288 Machinery and equipment375,547361,84611,26481,935713,3721,543,9646,744,358 Total noncurrent assets5,597,8113,71
9,8337,188,7062,258,2662,186,94020,951,5562,733,685 Total assets5,726,9164,022,0087,601,4262,370,6423,329,13923,050,1314,746,973Accrued interest payable18,73113,82411,713
- -44,2682,912Capital lease - current - - - - - -39,158Total current liabilities808,869234,309200,242151,395341,4771,736,292806,465
Accounts payable28,214119,4494,23828,09773,565253,56314,816Compensated absences30,53015,2973,27915,36831,92796,401749,579
Activities
WaterSewerStorm SewerPavilion/Internal
Proprietary
Nonmajor
Funds
Business-type Activities-Enterprise Funds
Statement of Net Assets
December 31, 2011
Proprietary Funds
City of Hopkins
Capital Assets, non depreciable
Capital Assets, depreciable
Current Liabilities:
Noncurrent assets
LIABILITIES
Current assets
ASSETS
48
-
- -
Governmental
UtilityUtilityUtilityIce ArenaTotalsService Funds
-279,08345,46623,1973,506,881302,2872,113,4941,179,0211,389,123196,861364,6745,243,1731,108,752 net of related debt4,088,9212,731,8045,809,3532,258,2662,186,94017,075,2842,415,444Unrestricted(
475,499)111,183402,950(84,485)777,525731,6741,222,777Total net assets$3,613,422$2,842,987$6,212,303$2,173,781$2,964,465$17,806,958$3,638,221
Activities
WaterSewerStorm SewerPavilion/Internal
4
0
2
,
3
2
$
-3,393,183
26,78344,963
2
5
9
,
1
4
$
-
-
-12,673
Proprietary
Nonmajor
Funds
4
2
5
,
0
1
$
Business-type Activities-Enterprise Fund
s
- -
-44,963
3
0
5
$
Statement of Net Assets
- -
December 31, 2011
Proprietary Funds
City of Hopkins
unamortized discounts and premium)1,287,241919,5741,186,3681,304,625944,7121,188,881
3
1
5
,
2
$
-
-
7,055
The notes to the financial statements are an integral part of this statement.
3
8
0
,
8
1
$
-
-
7,055
9
2
3
,
0
1
$
Revenue bonds payable (net of
Total noncurrent liabilities
Advance from other funds
Invested in capital assets,
Total liabilities
Capital lease payable
Noncurrent Liabilities:
s
Net OPEB liability
e
c
n
e
s
b
NET ASSETS
a
d
e
t
a
s
n
e
p
m
o
C
49
- - - - - - -
(30,418)(186,558)448,715(152,957) -(102,043)(16,559)(28,845)27,804571,351(112,627)(28,845)31,054454,601(112,627)
Governmental
TotalsService Funds
$1,381,444$1,823,204$796,587$378,318$1,158,545$5,538,098$358,4631,392,3001,838,949803,417385,7481,194,6095,615,023358,463777,8971,466,254102,742334,067946,9793,627,93949,5961,224,5931,767,475376,9074
16,1661,381,1675,166,308511,420
67,720198,718849,589461,8248,31914,54626,87942,3431,573214,362122,63640,3303,478,7432,803,7435,933,8342,202,6262,933,41117,352,3573,750,848$3,613,422$2,842,987$6,212,303$2,173,781$2,964,465$17,806,95
8$3,638,221
Activities
Internal
(3,967)
-(25,000)(145,000)
76,92514,379235,470688,7803,006 -190,442190,44228,250
-
-(3,967)
Non-major
SewerStorm SewerPavilion/Proprietary
4,216
7,43036,064 -23,671 -28,250
UtilityIce ArenaFunds
Business-type Activities-Enterprise Funds
- -
1,573
Statement of Revenues, Expenses, and Changes in Net Assets
For the Year Ended December 31, 2011
- - - - -
(39,242)(32,651)(30,150)(33,028)(32,230)(28,041) -(120,000)
6,830208,711154,89575,325237,985146,326198,840167,70771,474426,5102,109134,67939,244398,469134,67939,244278,469
Proprietary Funds
City of Hopkins
- - - - -
10,85615,745421
Utility
The notes to the financial statements are an integral part of this statement.
- - - - -
3,0063,208
Water
Utility
Income (loss) before contributions and transfers
Nonoperating revenues (expenses):
Total nonoperating revenues
Interest/fiscal agent expense
Total net assets - beginning
Total operating revenues
Loss on disposal of assets
Total operating expenses
Intergovernmental grants
Cost of sales and service
Total net assets - ending
Change in net assets
Miscellaneous revenue
Operating income (loss)
Gain on sale of assets
Capital contributions
Charges for services
Investment earnings
Operating expenses:
Operating revenues:
Transfers (out)
Administration
(expenses)
Depreciation
Other
50
Internal activity-payments to other funds - - -(91,060) -(91,060) - Internal activity-payments from other funds225,166 - - - -225,166 -
Payments to employees(400,166)(209,087)(51,337)(209,786)(308,450)(1,178,826) - Miscellaneous revenues3,006 - - - -3,006 - Intergovernmental grants
- - - -218,692218,692 - Transfers in (out) - -(120,000) -(25,000)(145,000) - Net cash provided by (used in) noncapital financing activities
- -(120,000) -193,69273,692 - Construction of capital assets(384,169)(114,363)(148,011) - -(646,543) - Bond payments(200,000)(50,000)(1,025,000)
- -(1,275,000) -
Payments to suppliers(384,160)(1,183,533)(58,095)(114,810)(657,033)(2,397,631)(78,559) Payments for interfund services used(208,711)(154,895)(75,325)(14,379)(157,474)(610,784)(105,217)
Purchases of capital assets - - - -(409,620)(409,620)(327,933) Interest and other payments(47,091)(33,868)(41,390) - -(122,349)(16,901) Capital lease
payments - - - - - -(37,315) financing activities(628,052)(198,231)(1,214,401) -(385,949)(2,426,633)(339,806)
-(137,390)(750,231)(129,321)
Governmental
Receipts from customers and users$1,392,917$1,841,652$807,386$428,462$1,174,466$5,644,883$57,875 Receipts from interfund services provided - - - - - -324,454
Net cash provided (used) by operating activities628,052294,137622,629(1,573)51,5091,594,754198,553 Proceeds from sales of capital assets3,208 - - -23,67126,87942,34311,9326001,145
,9112,260,7302,089,901$ -$103,313$398,065$600$1,008,521$1,510,499$1,960,580
UtilityUtilityUtilityIce ArenaFundsTotalsService Funds
NonmajorActivities
WaterSewerStorm SewerPavilion/ProprietaryInternal
7,956
3,358
Business-type Activities-Enterprise Funds
1,573
95,906(708,747)
3,025
7,4071,106,812
For the Year Ended December 31, 2011
Statement of Cash Flows
Proprietary Funds
City of Hopkins
-
- -
-
Cash Flows from Capital and Related Financing Activities:
Net cash provided by (used in) capital and related
Cash Flows from Noncapital Financing Activities
Net increase (decrease) in cash and investments
Cash Flows From Investing Activities
Cash Flows from Operating Activities
Cash and investments - December 31
Cash and investments - January 1
Interest receive
d
51
Miscellaneous income3,006 - - - -3,006 -Inventory194 -(660) -1,362896 -Prepaid expense -700 -(2)17,72318,421 -Due to other funds225,166
- -(91,060)(5,337)128,769 -Due to other governments(62)69 -220 -227 -Unearned revenue160 - - - -160 - Capital asset (loss)$ -$
-$ -$ -$(3,967)$(3,967)$ - Capital contributions - - - -28,25028,250 -
Operating income (loss)$167,707$71,474$426,510$(30,418)$(186,558)$448,715$(152,957)Accounts, compensated absences and accrued interest payable(6,561)72,865(6,030)9,25345,744115,271(134,180)
Governmental
Accounts receivable4572,7033,96942,714(20,143)29,700723
Depreciation expense237,985146,326198,84067,720198,718849,589461,824Due from other funds - - - - - -23,143 Net cash provided (used) by operating activities$628,052$
294,137$622,629$(1,573)$51,509$1,594,754$198,553
UtilityUtilityUtilityIce ArenaFundsTotalsService Funds
NonmajorActivities
WaterSewerStorm SewerPavilion/ProprietaryInternal
Business-type Activities-Enterprise Funds
For the Year Ended December 31, 2011
Statement of Cash Flows
Proprietary Funds
City of Hopkins
The notes to the financial statements are an integral part of this statement.
(loss) to net cash provided by (used in) operating
Noncash investing, capital, and financing activities:
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Adjustments to reconcile operating income
(Increase) decrease in: Increase (decrease) in:
activities:
52
NOTES TO THE
FINANCIAL STATEMENTS
53
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
1 SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
The City of Hopkins, Minnesota (the City) is a charter City, which was approved December 2, 1947. The City
operates pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council - Manager
form of government.
The financial statements of the City have been prepared in conformity with U.S. generally accepted accounting
principles as applied to governmental units by the Government Accounting Standards Board (GASB). The more
significant accounting policies of the City are described below.
A. REPORTING ENTITY
In accordance with GASB pronouncements, the City’s financial statements include all funds and departments of
the City and its component units, for which the City is considered to be financially accountable. A blended
component unit, although legally separate entity is, in substance, part of the City’s operations and so data from
this unit is combined with data of the primary government. The City’s blended component unit has a March 31
year-end, however when blended with the City it is shown with a December 31 year-end.
Blended Component Unit
Housing and Redevelopment Authority in and for the City of Hopkins (HRA)
The HRA was created by the City to carry out certain redevelopment projects and low-income rental housing.
Individuals on the City Council represent the governing board of the HRA. The housing activity is supported in
part by federal subsidies. There is an extensive trust agreement between the HRA and HUD regarding the facility.
The HRA is included in the City’s enterprise funds. Separate financials are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., statement of net assets and the statement of changes in net assets)
report information on all activities of the primary government and its component units. The interfund services
provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as
54
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
revenue as soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at
year end.
Governmental funds are accounted for using the current financial resources measurement focus and the modified
accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become
measurable and available). “Measurable” means the amount of the transaction can be determined and “available”
means collectible within the current period or within sixty days thereafter to be used to pay liabilities of the
current period.
Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental
revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual
include fees and miscellaneous revenues; such revenues are recorded only as received because they are not
measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund
liability is incurred, except for principal and interest on general long-term debt and compensated absences that are
recognized when due and payable.
The City reports the following major governmental funds:
Thegeneral fund is the primary operating fund of the City. It is used to account for all financial resources
except those required to be accounted for in another fund.
for development opportunities of the city.
Theeconomic development special revenue fund accounts
Sources of funds are derived from the administration of loans and an annual tax levy.
Thetax increment district 2.11 special revenue fund accounts for the repayment of debt on the re-development
district tax increment project.
for the activities of the Hopkins Center for the Arts. Sources
Thearts center special revenue fund accounts
of funds are derived from leases, ticket sales, admission fees, grants and donations
The2009B taxable housing improvement bonds of 1999A refunding bond debt service fund accounts for
resources accumulated and payments made for principal and interest on long-term debt issued to pay for
Valley View Home improvements. The owners of these town homes pay an annual fee, which in turn pays for
the bond issue.
The2009B taxable housing improvement bonds of 1999B refunding bond debt service fund accounts for
resources accumulated and payments made for principal and interest on long-term debt issued to pay for
Westbrook Patio Home improvements. The owners of these town homes pay an annual fee, which in turn pays
for the bond issue.
The2005B taxable tax increment bonds of 1997 refunding bond debt service fund accounts for resources
accumulated and payments made for principal and interest on long-term debt issued to pay for Westbrook
Patio Home improvements. The owners of these town homes pay an annual fee, which in turn pays for the
bond issue.
Themunicipal state aid construction capital projects fund accounts for resources accumulated and payments
made for street improvements funded with State of Minnesota funding through the state aid construction
program.
Thepermanent improvement revolving capital projects fund accounts for resources and accumulated payments
for street improvements funded with bonds and special assessments levied on benefited property.
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
The City reports the following major proprietary funds:
Thewater utility fund accounts for the operations of the City-owned water distribution system. The water
bonds of 2000 and 2009A are included as part of this fund since revenues of the water fund are pledged to pay
principal and interest on this bond.
Thesewer utility fund accounts for the operations of the City-owned sewer lift stations and disposal system.
The sewer bonds of 2009A are included as part of this fund since revenues of the sewer fund are pledged to
pay principal and interest on this bond.
Thestorm sewer utility fund accounts for the operations and improvements of the storm water drainage system.
The storm water bond issues of 1999C, 2001, 2003A and 2009A are included as part of this fund since
revenues of the storm sewer fund are pledged to pay principal and interest on these bonds.
ThePavilion/Ice Arena fund accounts for the operations and improvements of the city-owned Pavilion/Ice
Arena.
Additionally, the City reports the following fund types:
Governmental Funds
Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue
sources that are legally restricted or committed by Council to expenditures for specified purposes.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest, and related costs.
Capital Project Funds - Capital project funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and infrastructure, other than those financed by
proprietary funds or special revenue funds.
Proprietary Funds
Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises, where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a continuing basis,
be financed or recovered primarily through user charges.
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. Internal service
funds are used for equipment replacement, insurance deductions and employee benefits.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those standards
do not conflict with or contradict guidance of the GASB. Governments also have the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same
limitation. The government has elected not to follow subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements, however interfund services provided and used are not eliminated in the process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
56
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the City enterprise funds and
internal service funds are charges to customers for sales and service. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted
resources first, and then use unrestricted resources as they are needed.
D.CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments pursuant
to Minnesota Statutes (see note 4). Earnings from such investments are allocated to the respective funds on the
basis of applicable cash balance participation by each fund. Investments in certificates of deposit and commercial
paper with a maturity date of less than one year at the date of purchase are reported at cost or amortized cost,
which approximates fair value. Investments other than commercial paper held longer than one year are reported at
fair value, based on quoted market prices.
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which
is used essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary
funds consider all investments to be cash equivalents. Restricted cash and investments are reported separately on
the financial statement.
E. INTERFUND RECEIVABLES/PAYABLES
Activity between funds that is representative of lending/borrowing arrangements and transactions between funds
that are outstanding at the end of the fiscal year are referred to “due to/from other funds” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances.”
The non-current portion of due to/from other funds is offset by a nonspendable fund balance in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
F. INVENTORIES AND PREPAID ITEMS
All inventories are accounted for using the consumption method and are valued at cost using the first-in/first-out
(FIFO) method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements. Prepaid items are reported using the consumption
method and recorded as expenditures/expenses at the time of consumption.
G. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements and the proprietary
fund financial statements. The City defines capital assets as assets with an initial, individual cost of more than
$1,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated
capital assets are recorded at estimated fair market value at the date of donation.
57
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets
lives are not capitalized.
Assets not being depreciated include land and construction in progress. Buildings, equipment, and infrastructure
of the City and the HRA are depreciated using the straight-line method over the estimated useful lives as follows:
Buildings 30 - 40 years
Mains and Lines 40 - 50 years
Streets 20 - 25 years
Improvements 10 - 20 years
Vehicles 3 - 30 years
Equipment 3 - 20 years
H. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Employees hired prior to
August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month of full-time service,
instead of flex leave.
Employees hired prior to August 1, 1998, that have not opted for flex leave, shall be entitled to severance pay,
after completion of five years of continuous City employment. Severance pay is calculated by multiplying the
total number of continuous years in the City employ and/or accumulated sick leave by the daily wage rate
prevailing at date of severance, at one day per year of such employment, to a maximum of 20 days. Such
severance money shall be paid in case of separation caused by death, eligible retirements, or medically attested
disability preventing an employee from performing the major duties of the position or separation for non-
disciplinary reasons.
Accumulated vacation, flex and vested severance pay is reported as an expense and an accrued liability as the
benefits accrue to employees in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in the governmental funds only if benefits have matured as a result of employee
resignations and retirements. The employee benefits internal service fund reports the governmental funds’
liability for compensated absences on the accrual basis.
I. LONG-TERM OBLIGATIONS
In the government-wide financial statements, and proprietary fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities,
or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs are
deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium
or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the governmental fund financial statements bond premiums and discounts, as well as bond issuance costs are
recognized during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
J. NET ASSETS/FUND EQUITY
Net assets represent the difference between assets and liabilities in the government-wide financial statements. Net
assets invested in capital assets, net of related debt, consists of capital assets net of accumulated depreciation,
reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net assets
are reported as restricted in the government-wide financial statements when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
58
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
In the fund financial statements, at December 31, 2011, the City adopted GASB Statement No. 54, Fund Balance
Reporting and Governmental Fund Type Definitions.
In the fund financial statements, governmental funds report fund balances in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – portions of fund balance related to prepaids, inventories, long-term receivables, and land
held for resale.
Restricted – funds are constrained by external parties (statute, grantors, bond agreements, etc).
Committed – fund constraints are established and modified by a resolution approved by the City Council.
Assigned – consists of internally imposed constraints. These constraints are established by the City Council
and/or management. The City Council also delegates the authority to assign fund balance to the Finance
Director.
Unassigned – is the residual classification for the General Fund and also reflects negative residual amounts
in other funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available,
it is the City’s policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are
available, it is the City’s policy to use committed first, then assigned, and finally unassigned amounts.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund
of a minimum of 5 months or 42% of the previous year’s budgeted expenditures.
K. INTERFUND TRANSACTIONS
Inter-fund services provided and used are accounted for as revenues and expenditures. Transactions that
constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another
fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is
reimbursed.
All other interfund transactions are reported as transfers.
L. PROPERTY TAXES
Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County
(the County) for collection in the following year. In the State of Minnesota, counties act as collection agents for
all property taxes. The County spreads all levies over assessable property. Such taxes become a lien on January 1
and are recorded as receivables by the City at that date.
Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal
property taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County
provides tax settlements to cities and other local governments three times a year, on or before January 25, July 5
and December 1.
In the governmental fund financial statements property taxes are accrued and recognized as revenue for
collections within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
delinquent taxes receivable, and are fully offset by deferred revenues because they are not available to finance
current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not
expected to be material.
M. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Commercial Development Revenue Notes/Bonds in accordance with the
Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in
the public interest. The obligations are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired
facilities transfers from the bond holder to the private-sector entity served by the debt issuance. Neither the City,
the State, nor any political subdivision thereof is obligated in any manner for repayment of the obligations.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December
31, 2011, there were 8 notes/bond issues outstanding, with an aggregate principal amount payable of
approximately $33 million.
N.USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE
SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds
and net assets – governmental activities as reported in the government-wide statement of net assets. One element
of that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported in the funds. Details of this difference are as follows:
Bonds payable $ 21,733,820
Accrued interest payable 337,328
Net OPEB obligation 126,189
Net adjustment to reduce fund balance – total governmental
funds to arrive at net assets – governmental activities $ 22,197,337
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT-
WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances – total governmental funds and change in net assets of
governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains, “Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense.” The details of this difference are as follows:
60
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Capital outlay $ 1,972,412
Depreciation expense (1,386,928)
Net adjustment to increase net changes in fund balances –
total governmental funds to arrive at changes in net assets
of governmental activities $ 585,484
Another element of that reconciliation explains that, “the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt uses financial resources
of the governmental funds. Neither of these transactions has any effect on the net assets. Also, governmental
funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the statement of net changes.” The details of these differences are as
follows:
Principal repayments $(2,280,000)
OPEB expense 18,020
Amortization of net deferred issuance costs 33,902
Amortization of bond premium and discount 13,037
Prior year interest expense (334,168)
Accrue interest expense for current year 337,328
Net adjustment to decrease net changes in fund balances –
total governmental funds to arrive at changes in net assets
of governmental activities $(2,211,881)
3 STEWARDSHIP, COMPLIANCE AND ACCOUNTIBILITY
A. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds except the Section 8 and Hennepin County CDBG special revenue funds, the debt service
funds and the capital projects funds, which are not budgeted. A capital improvement plan is reviewed annually by
the City Council for the capital projects funds and utility funds. However, appropriations for major projects are
not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial
statements. All annual appropriations lapse at fiscal year end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements and set
forth in Section 7.04 of the City Charter.
1.The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed
budget and an explanatory budget message in a form and manner as prescribed by the City Charter.
2.The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer
comments.
3.The Council shall adopt the tax levy by resolution no later than a December date, which is annually
established by law for the county auditor to levy taxes. The budget shall set forth the total for each budgeted
fund with such segregation as to objects and purposes of expenditures as the Council deems necessary for
purposes of budget control.
4.The City Manager is authorized to transfer budgeted amounts between departments within any fund; however,
any revisions that alter the total expenditures of any fund must be approved by the City Council and are
61
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
limited to the amount revenues exceed the budgets or authorize the transfer of sums from unexpended
balances to other purposes. Budgeted expenditure appropriations lapse at year-end. The level of legal control
is at the fund level.
5.The Council made one supplemental budgetary appropriation to the general fund in 2011 in the amount of
$1,750 within the fire department budget to recognize a grant and the related expenditure. This increased
both the revenues and expenditures and had a zero net effect on the general fund budget.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2011, actual expenditures exceeded the budgeted amounts in the following
funds:
State Chemical Assessment Team $ 66,248
Economic Development 561,040
Tax Increment District Entertainment District 17,340
Tax Increment District Sonoma 61
Tax Increment District Oaks of Mainstreet 312
Tax Increment District 2-11 259,013
th
Avenue Flats 164,776
5
These over expenditures were funded by greater than anticipated revenues of the State Chemical Assessment
th
Avenue
Team, Economic Development, and Tax Increment District 2-11 funds, and by future revenues in the 5
Flats and the Tax Increment District Entertainment, Sonoma and Oaks Districts.
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process
are funds that are completely reimbursable from the federal and state governments. The Section 8, E-911 Service
Fee and Community Development Block Grant Funds are non-budgeted funds.
C. FUND BALANCE DEFICITS
At December 31, 2011, the following funds had deficit fund balances or net assets. These deficits will be funded
through future tax levies, contributions, grants, charges for services or developer payments:
State Chemical Assessment Team $ 1,348
Art Center 1,067,889
Tax Increment District Entertainment District 200,646
Tax Increment District Sonoma 272,655
th
Avenue Flats 368,305
5
Tax Increment District Marketplace & Main 5,897
D. NET ASSETS RESTRICTED BY ENABLING LEGISLATION
The government-wide statement of net assets reports $1,486,458 in restricted net assets for economic
development, of which $1,448,901 is restricted by enabling legislation.
62
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
4. DEPOSITS AND INVESTMENTS
As of December 31, 2011 the City had the following deposits and investments:
Investment Type Fair Value
Government securities $ 1,248,229
Municipal obligations 2,530,897
Negotiable certificates of deposit 3,941,810
Repurchase agreement 6,121,926
Deposits 347,459
Total fair value $14,190,321
Interest rate risk – Interest rate risk is the risk that the fair value of investments will be adversely affected by a
change in interest rates. In accordance with its investment policy, the city manages its exposure to declines in fair
values by holding long-term government investments to maturity and by investing in commercial paper with
maturity dates of 270 days or less.
At of December 31, 2011 the City had the following investment maturities:
Investment maturities (in years)
FairLessNo
Valuethan one1-510-15maturity
Investment Type:
Government securities
$ -250,288$ 250,288$ -$ -$
FNMA
-498,700 - 498,700 -
FHLB
-499,241 - 499,241 -
FHLMC
Muncipal obligations2,530,897 1,293,743 1,237,154 - -
Negotiable certificates of deposit3,941,810 3,450,057 491,753 - -
Repurchase agreement6,121,926 - 6,121,926-
-
Demand deposits 347,459 - 347,459-
-
$ 14,190,321$ 4,743,800$ 6,469,385
$ 1 ,979,195$ 9 97,941
Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its
obligations. Credit risk is measured using credit quality ratings of investments in debt securities as described by
nationally recognized rating agencies such as Standard & Poor’s and Moody’s. According to the City’s
investment policy commercial paper shall be restricted to issues, which mature in 270 days or less with a rating of
A-1 (Moody’s), P-1 (Standard & Poor’s) or F-1 (Fitch) among at least two of the three rating agencies.
The City is authorized by Minnesota Statutes to invest in the following:
(a)Direct obligations or obligations guaranteed by the United States or its agencies.
(b)Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above.
(c)General obligations in the State of Minnesota or any of its municipalities
(d) Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System
(e)Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturity in 270 days or less; and
(f)Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries.
63
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
(g)Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government
securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers.
The following table lists the credit quality ratings per Moody’s and/or Standard and Poor’s and/or Fitch of the
City’s investments at December 31, 2011.
Quality Ratings
FairFDIC
ValueAAAAAInsured
Investment Type:
Government securities
FNMA250,288$ -$ 250,288$ -$
FHLB498,700 - 498,700 -
FHLMC499,241 - 499,241 -
Muncipal obligations2,530,897 773,505 1,757,393 -
Negotiable certificates of deposit
3,941,810 3,941,810-
-
Repurchase Agreement 6,121,926 6,121,926-
-
Demand deposits 347,459 347,459-
-
$ 773,50514,190,321$ $ 10,411,1953,005,621$
Custodial credit risk
Deposits – For deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be
returned to it. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not covered by
insurance or bonds. Authorized collateral includes the legal investments described above, as well as
certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes
require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial
institution other than that furnishing the collateral. At December 31, 2011 the City had no deposits that
were uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the
City’s agent in the City’s name.
Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All investments held by the City are insured or registered or are held by
the City or its agent in the City’s name. The City has the ability and intent to hold its investments to
maturity and therefore intends to recover the full carrying value of its investment portfolio upon maturity.
Concentration of credit risk – This is the risk associated with investing a significant portion of the City’s
investments (considered 5 percent or more) in the securities of a single issuer, excluding U.S. explicitly guaranteed
investments (Treasuries), investment pools, and mutual funds. As of December 31, 2011, the city had no
investments exceeding 5 percent or more for a single issuer.
Restricted Cash – Restricted cash totals $1,761,739 of which $1,531,871 is held in escrow for the payment of Tax
Increment Bonds of 2002A which will be called February 2013 and $229,867 is held in escrow for debt service
reserve on the 2003 HRA Revenue Bonds.
64
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2011 were as follows:
Beginning Ending
BalanceIncreasesDecreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated
$ 5,805,711 $ - $ - $ - $ 5,805,711
Land
3,423,633 1,845,255 - (2,837,585) 2,431,303
Construction in Progress
9,229,344 1,845,255 - (2,837,585) 8,237,014
Total not being depreciated
Capital assets, being depreciated
19,766,917 26,055 - - 19,792,972
Buildings
30,655,619 68,427 - 2,837,585 33,561,631
Other Improvements
3,837,890 213,791 (196,998) - 3,854,683
Vehicles
4,872,636 146,817 (72,797) - 4,946,656
Machinery & Equipment
59,133,062 455,090 (269,795) 2,837,585 62,155,942
Total being depreciated
Less accumulated depreciation:
(4,240,958) (481,379) - - (4,722,337)
Buildings
(12,681,583) (801,365) - - (13,482,948)
Other Improvements
(2,035,686) (246,123) 196,998 - (2,084,811)
Vehicles
(3,415,960) (319,885) 72,529 - (3,663,316)
Machinery & Equipment
(22,374,187) (1,848,752) 269,527 - (23,953,412)
Total accumulated depreciation
Total capital assets, being
36,758,875 (1,393,662) (268) 2,837,585 38,202,530
depreciated, net
Governmental activities capital
assets, net
$ 45,988,219 $ 451,593 $ (268)$ - $ 46,439,544
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65
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Beginning Ending
Balance
Increases Decreases Transfers Balance
Business-type Activities:
Capital assets, not being depreciated
$ 167,789 $ - $ (7,000)$ 67,674 $ 228,463
Land
2,913,264 556,940 (26,767) (2,410,793) 1,032,644
Construction in Progress
3,081,053 556,940 (33,767) (2,343,119) 1,261,107
Total not being depreciated
Capital assets, being depreciated
6,981,609 400,000 - 341,562 7,723,171
Buildings
19,258,994 85,583 (15,000) 362,237 19,691,814
Infrastructure
5,836,434 25,800 - 1,639,320 7,501,554
Other Improvements
729,552 211,784 (152,889) - 788,447
Vehicles
754,220 3,773 (2,476) - 755,517
Machinery & Equipment
33,560,809 726,940 (170,365) 2,343,119 36,460,503
Total being depreciated
Less accumulated depreciation:
(3,752,563) (200,017) 3,033 - (3,949,547)
Buildings
(10,281,551) (401,060) 15,000 - (10,667,611)
Infrastructure
(1,091,464) (141,230) - - (1,232,694)
Other Improvements
(433,146) (62,321) 151,939 - (343,528)
Vehicles
(567,278) (44,961) 2,476 - (609,763)
Machinery & Equipment
(16,126,002) (849,589) 172,448 - (16,803,143)
Total accumulated depreciation
Total capital assets, being
depreciated, net
17,434,807 (122,649) 2,083 2,343,119 19,657,360
Business-type activities capital
assets, net
$ 20,515,860 $ 434,291 $ (31,684)$ - $ 20,918,467
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 49,887
Public safety 252,370
Highways and streets 958,776
Urban redevelopment and housing 613
Culture and recreation 125,282
Capital assets held by the government’s internal service funds are
charged to the various functions based on their usage of the assets 461,824
Total depreciation expense – governmental activities $1,848,752
Business-type activities:
Water $ 237,985
Sewer 146,326
Storm Sewer 198,840
Refuse 56,266
Pavilion/Ice arena 67,720
Housing and Redevelopment Authority 142,452
Total depreciation expense – business-type activities $ 849,589
66
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Construction commitments
The City has active construction projects as of December 31, 2011. The projects include street improvements. The
City’s commitment with contractors related to these projects is $135,891.
6. INTERFUND RECEIVABLES AND PAYABLES
The following funds had amounts receivable from other funds, and the respective funds had equal amounts payable to
other funds at December 31, 2011:
Due from other funds
EconomicInternal
GeneralDevelopmentServiceTotal
Due to other funds:
Non-major governmental$ 425,527$ 518,863$ 944,390-$
Arts Center 758,216 300,000 1,058,216-
Water 504,036 -- 504,036
Pavilion/Ice Arena 99,592 -- 99,592
Non-major proprietary 222,491 487- 222,978
Total due to other funds$ 2,009,862$ 818,863$ 2,829,212487$
Advances from other funds
Internal
ServiceTotal
Advanced to other funds:
Pavilion/Ice Arena$ 44,963$ 44,963
Total advances to other funds44,963$ $ 44,963
The interfund receivables and payables are to eliminate negative cash between funds and to allow for development
loans or to facilitate a project or operations of another fund.
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31, 2011:
Transfers in
ArtNon-major
GeneralCenterGovernmentalTotal
Transfers out:
General-$ -$ 10,000$ 10,000$
Economic Development- 61,000 - 61,000
Tax Increment District 2.11- - 188,000 188,000
Permanent Improvement Revolving- - 250,711 250,711
Storm Sewer- - 120,000 120,000
Non-major governmental591,677 86,920 171,514 850,111
Non-major business-type- - 25,000 25,000
Total transfers out591,677$ 147,920$ 765,225$ 1,504,822$
67
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
Non-routine transfers include the following:
1)Annual transfers from storm sewer and refuse funds for lease payments on new public works facility.
2)An annual transfer, from the Economic Development and non-major governmental Communication funds to
the Art Center Fund totaling $147,920 to pay the original debt for building the facility.
3)Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments.
4)Transfers from Housing Rehab non-major governmental fund to the General fund to close the fund and
transfer activities to the General fund.
8. LEASES
The city has entered into a lease agreement as a lessee for financing the acquisition of an aerial lift fire truck with a
down payment of $445,427. The lease agreement qualifies as a capital lease for accounting purposes and, therefore,
has been recorded at the present value of their future minimum lease payments as of the inception date.
The asset acquired through the capital lease is as follows:
Governmental Activities
Asset:
Machinery and equipment $870,427
Less: Accumulated depreciation (137,746)
Total $732,681
The future minimum lease obligations and the net present value of these minimum lease payments as of December
31, 2011 are as follows:
Governmental
Activities
Year Ending December 31,
2012$ 54,217
2013 54,217
2014 54,216
2015 54,216
2016 54,216
2017-2018 108,433
Total minimum lease payments 379,515
Less: amount representing interest (61,274)
Present value of minimum lease payments318,241$
9. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are
issued as 20-year serial bonds.
68
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Refunding
On November 17, 2010 the City issued $1,585,000 General Obligation Refunding Bonds, Series 2010B for a
crossover refunding of $1,490,000 General Obligation Tax Increment Bonds, Series 2002A. Future debt service
payments will be reduced by $109,172 with a present value savings of $92,997. The refunded bonds will be called
and paid on February 1, 2013.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Governmental activities 2.00 – 6.60% $13,185,000 $9,720,000
Governmental activities – refunding 0.50 – 5.15% 9,140,000 5,585,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year EndingGovernmental Activities
December 31PrincipalInterest
2012$ 1,060,000$ 586,714
2013 2,595,000 513,375
2014 1,170,000 438,832
2015 1,205,000 396,685
2016 1,270,000 350,439
2017-20216,010,000 1,027,436
2022-20261,995,000 82,795
$ 3,396,27615,305,000$
The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City,
and repayment monies are generated by the collection of special assessments and general levies. On November 17,
2010 the City issued $2,710,000 General Obligation Permanent Improvement Bonds, Series 2010A for the purpose of
street improvements and $220,000 General Obligation Refunding Bonds, Series 2010B to refund $215,000 General
Obligation Improvement Bonds, Series 2002B. Future debt service payments will be reduced by $4,985 with a
present value savings of $4,844. The refunded bonds were called and paid on February 1, 2011.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Street Improvements 0.50 – 4.25% $ 5,625,000 $4,165,000
Street Improvements – refunding 0.50 – 0.700% 220,000 220,000
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year EndingGovernmental Activities
December 31PrincipalInterest
2012$ 440,000$ 116,840
2013 455,000 107,334
2014 365,000 97,227
2015 380,000 86,628
2016 390,000 75,221
2017-20211,390,000 222,272
2022-2026965,000 217,255
$ 4,385,000$ 922,777
69
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Revenue bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service. On November 17, 2010 the City issued $875,000 General Obligation Refunding Bonds, Series
2010B to refund $855,000 Storm Sewer Revenue Bonds, Series 2003A. Future debt service payments will be
reduced by $71,336 with a present value savings of $62,061. The refunded bonds were called and paid on February
1, 2011.
Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Original Amount Current Amount
Storm sewer – refunding 2.0 – 4.0% $2,215,000 $490,000
Water refunding 2.0 – 4.0% 850,000 690,000
Water construction & replacement 2.0 – 4.0% 820,000 780,000
Sanitary sewer construction & replacement 2.0 – 4.0% 1,020,000 970,000
Storm sewer – refunding 0.5 – 2.9% 875,000 875,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31PrincipalInterest
2012$ 450,000$ 100,598
2013 470,000 92,285
2014 475,000 82,572
2015 485,000 70,460
2016 185,000 61,547
2017-2021995,000 223,906
2022-2026745,000 52,417
$ 683,7853,805,000$
Public Facility Lease Revenue Bonds
The Housing and Redevelopment Authority in and for the City of Hopkins, a blended component unit of the City, has
issued public facility lease revenue bonds for the construction of police station improvements. The Housing and
Redevelopment Authority has entered into ground leases with the City for the lease of the facilities to the City. The
leases will remain in effect until all principal and interest on the bonds have been paid. So long as the leases are in
effect, the City will make semiannual lease payments on each February 1 and August 1, in amounts sufficient to pay
all principal and interest on the bonds due on such payment date. The bonds are special obligations of the Housing
and Redevelopment Authority. The bonds do not constitute a general obligation of the Housing and Redevelopment
Authority or the City. It is the intent of the City to levy ad valorem taxes an amount sufficient to make rental
payments required under the leases. In the event the annual appropriation is not made, the bond trustees are entitled
to repossession and the right to re-lease the buildings and land. Public facility lease revenue bonds currently
outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Police Station improvements 2.0 – 4.35% $ 3,050,000 $ 2,185,000
70
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Annual debt service requirements to maturity are as follows:
Year Ending
December 31PrincipalInterest
2012$ 135,000
$ 82,281
2013 140,000 77,811
2014 145,000 73,054
2015 145,000 68,070
2016 155,000 62,743
2017-2021860,000 218,800
2022-2026605,000 39,833
2,185,000
$ $ 622,592
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2011, the debt limit for the City is $43,805,930. Of the total debt, $9,548,984 of general obligation and
revenue bonds is applicable to the limit. The legal debt margin is $34,256,946.
Advance Refunding
On August 14, 2007 the City issued $9,920,000 in General Obligation Capital Improvement Bonds, Series 2007A for
the purpose of refunding the $10,760,000 HRA Lease Revenue Bonds, Series 2002A. Future debt service payments
will be reduced by $120,340 with a present value savings of $89,973. As of December 31, 2011, $7,755,000
remained outstanding.
(remainder of page left blank intentionally)
71
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2011, was as follows:
Beginning EndingDue Within
BalanceAdditionsDeductionsBalanceOne Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds$8,330,000 $- $1,030,000 $7,300,000 $535,000
General obligation bonds 8,625,000- 8,005,000 525,000
620,000
Total general obligation bonds16,955,000 - 1,650,000 15,305,000 1,060,000
Special assessment bonds 4,885,000- 4,385,000 440,000
500,000
Public facility lease bonds 2,315,000- 2,185,000 135,000
130,000
Less deferred amounts
For issuance discounts (140,203) - 11,009 (129,194) -
For issuance premiums 5,307 - (661) 4,646 -
On refunding (19,321) - 2,689 (16,632) -
Total bonds payable -24,000,783 2,293,037 21,733,820 1,635,000
Compensated absences 866,453 655,909 772,783 749,579
749,579
Net OPEB liability 108,169 164,697 126,189 -
146,677
Capital lease payable 355,556 - 37,315 318,241 39,158
Governmental activity
long-term liabilities$25,330,961 $820,606 $3,226,608 $22,951,033 $2,423,737
Business-type activities:
Bonds payable:
Revenue bonds$5,080,000 $- $1,275,000 $3,805,000 $450,000
Less deferred amounts
For issuance discounts (8,661) - 717 (7,944) -
For issuance premiums 62,615- 46,127 -
(16,488)
Compensated absences 139,524 96,707 138,353 96,401
97,878
Net OPEB liability 19,685 34,960 26,783 -
27,862
Business-type activity
long-term liabilities$5,293,163 $131,667 $1,384,969 $4,008,319 $546,401
For the governmental activities, compensated absences are generally liquidated by the general and special revenue funds.
10. FUND BALANCES
At December 31, 2011, the City had various fund balances through legal restriction and City Council
authorization. Major fund balance appropriations at December 31, 2011 are shown on the various balance sheets as
segregations of the fund balance. The fund balances are as follows:
72
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
TotalNonspendableRestrictedCommittedAssignedUnassigned
$ --
General Fund$ 4,266,048$ -$ -$ $ 4,266,048
Inventories111,516111,516
- - - -
Prepaid items62,97162,971
- - - -
Community development591,676- 591,676-
- -
Total General Fund174,487-4,266,048
5,032,211 - 591,676
Economic Development
Long term receivable818,863818,863
- - - -
Property held for resals1,817,098
1,817,098 - - - -
Economic Development228,305- 228,305-
- -
2,635,961 228,305-
Total Economic Development Fund 2,864,266 - -
Tax Increment District 2-11
Tax Increment814,797 814,797-
- - -
Arts Center
Prepaid items125125
- - - -
Deficit Fund Balance(1,068,014)- (1,068,014)-
- -
Total Arts Center Fund(1,067,889)125 (1,068,014)-
- -
Housing Improvement Bonds of 1999A
Refunding Bonds of 2009B
Debt service252,896 252,896-
- - -
Housing Improvement Bonds of 1999B
Refunding Bonds of 2009B
Debt service496,644 496,644-
- - -
Taxable Tax Increment Bonds of 1997
Refunding Bonds of 2005B
Debt service383,279 383,279-
- - -
Municipal State Aid Construction
Capital asset replacement1,666,332- 1,666,332-
- -
Permanent Improvement Revolving
Capital asset replacement563,533- 563,533-
- -
Nonmajor Governmental Funds
Prepaid items250250
- - - -
Rehab loans26,00626,006
- - - -
Long term receivable12,00012,000
- - - -
Debt service3,142,898 3,142,898-
- - -
Public safety50-
50 - - -
Tax increment633,104 633,104-
- - -
Park improvements100,194 100,194-
- - -
Economic development111,506- 111,506-
- -
Parking improvements171,052- 171,052--
-
Communications401,298- 401,298-
- -
Depot youth project14,188-
- 1 4,188 - -
Capital asset replacement272,471- 272,471-
- -
Deficit fund balance(848,851)- (848,851)-
- -
Total Nonmajor Funds4,036,16638,256(848,851)
3 ,876,246 6 98,044 2 72,471
Total Fund Balances$ 2,848,82915,042,235$$ 926,3495,823,862$$ 2,349,1833,094,012$
73
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
11. PENSION PLAN OBLIGATIONS
1. Defined Benefit Pension Plans - Statewide
A. Plan Description
All full-time and certain part-time employees of the City of Hopkins are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the
General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF), which are
cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance
with Minnesota Statutes, Chapters 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered
by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan.
All police officers, fire fighters and peace officers that qualify for membership by statute are covered by PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death
of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The
defined retirement benefits are based on a member's highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for GERF's Coordinated and Basic Plan members. The retiring
member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method
2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of
the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated
Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year.
Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent
for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0
percent for each year of service. For all PEPFF members and GERF members hired prior to July1, 1989 whose
annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal
retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989.
Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members
hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early
retirement.
There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime
annuity that ceases upon the death of the retiree--no survivor annuity is payable. There are also various types of
joint and survivor annuity options available which will be payable over joint lives. Members may also leave their
contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement
age. Refunds of contributions are available at any time to members who leave public service, but before
retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active
plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are
bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required supplementary
information for GERF and PEPFF. That report may be obtained on the web at mnpera.org, by writing to PERA,
60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026.
74
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans equal
to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required
to contribute 9.1% and 6.25%, respectively, of their annual covered salary in 2011. PEPFF members were
required to contribute 9.6% of their annual covered salary in 2011. The City of Hopkins is required to contribute
the following percentages of annual covered payroll: 11.78% for Basic Plan GERF members, 7.25% for
Coordinated Plan GERF members and 14.4% for PEPFF members. The City’s contributions to the General
Employees Retirement Fund for the years ending December 31, 2011, 2010 and 2009 were $343,546, $328,513,
and $316,832, respectively. The City’s contributions to the Public Employees Police & Fire Fund for the years
ending December 31, 2011, 2010 and 2009 were $311,058, $299,165, and $305,185, respectively. The City’s
contributions were equal to the contractually required contributions for each year as set by state statute.
2. Hopkins Fire Relief Association (HFRA)
Plan Description
The City contributes to the Hopkins Fire Relief Association (Association); a single employer defined benefit plan.
The Association administers the plan and issues separate financial statements that can be obtained by contacting
the Association.
Volunteer firefighters of the City are members of the Association. The plan provides for permanent and short
term disability benefits, death benefits and pensions with a set value for the annual withdrawal amount. Full
vesting in the plan requires a member to have served for at least 5 years, to have reached the age of 50 years and
to have been a member of the Association for at least 20 years. These benefit provisions and all other
requirements are consistent with enabling statutes.
Funding Policy and Annual Pension Information
The governing board of the Association requests changes in benefit levels and contribution requirements that must
be approved by the City Council. The funding policy provides that contributions from the City and from the State
of Minnesota are in amounts sufficient to accumulate assets to pay benefits when due. The City passes through
state aids allocated to the plan, in accordance with state statutes. The annual pension information is as follows:
2011 Contributions: City $ 32,166
State $ 65,039
Actuarial valuation date: 12/31/10
Actuarial cost method: Entry age normal
Amortization method Level dollar – closed
Remaining amortization period
Normal cost 20 years
Prior year service cost 5 years
Asset valuation method Market
Actuarial assumptions
Investment rate of return 5%
Projected salary increases N/A
Inflation rate N/A
Cost of living adjustments None
75
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
Annual Pension Benefit Cost for Past Three Years
Annual Pension% of Annual PensionNet Pension Obligation
Year EndedCost (APC)Cost ContributedAt Year Ended
12/31/2011$102,105 100%$0
12/31/2010$263,957 100%$0
12/31/2009$100,698 100%$0
Schedule of Funding Progress (Required Supplemental Information) (the most recent available)
ActuarialActuarialActuarial AccruedExcess (Under)Funded
ValuationValue ofLiability (AAL)Of AssetsRatio
DateAssetsEntry AgeOver AAL(a/b)
12/31/2010$1,913,421 $2,004,074 ($90,653)95%
12/31/2009$1,816,577 $2,190,083 ($373,506)83%
12/31/2008$1,982,694 $2,485,423 ($502,729)80%
The estimated accrued liability of $2,004,074 at December 31, 2010 was calculated using the State of Minnesota
Schedule I form for lump sum pension plans. This results in excess (deficit) net assets available for benefits of
($90,653) as of December 31, 2010. The Hopkins Fire Department is a volunteer organization and therefore does
not have payroll to disclose.
12. OTHER POST EMPLOYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City
engaged an actuary to determine the City’s liability for postemployment healthcare benefits other than pensions as
of January 1, 2010, for this single employer defined benefit OPEB plan.
1.Plan Description
The City, a single-employer postemployment benefit plan, provides benefits for retirees as required by Minnesota
Statute §471.61 subdivision 2b. Active employees, who were hired prior to July 1, 1993 and have been with the
City for at least ten years and are either (1) age 60 years or older or (2) eligible for full PERA retirement benefits.
Employees retiring by June 30, 2007 will receive full single health and life insurance coverage until age 65;
employees retiring between July 1, 2007 and December 31, 2009 will receive $500 per month towards the cost of
single health and life insurance until age 65; and employees retiring after December 31, 2009 will receive $15 per
month times years of service (maximum of $500 per month) towards the cost of single health and life insurance
until age 65. Currently 23 employees meet those eligibility requirements. As of December 31, 2011 there were
approximately 90 active participants and 17 retired participants receiving benefits from the City’s health plans.
2. Funding Policy
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2011, the City contributed $174,539
to the plan.
76
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
3. Annual OPEB Cost and Net OPEB Obligation
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each
year and amortize any un-funded actuarial liabilities over a period not to exceed thirty years. The following table
shows the components of the City’s annual OPEB cost for the year, the amount actually paid from the plan, and
changes in the City’s net OPEB obligation.
Annual Required Contribution$ 201,793
Interest on Net OPEB Obligation 5,753
Adjustment to Annual Required Contribution (7,889)
Annual OPEB Cost (Expense) 199,657
Contributions Made (174,539)
Increase in Net OPEB Obligation 25,118
Net OPEB Obligation- Beginning of Year 127,854
Net OPEB Obligation- End of Year$ 152,972
The City’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2011:
Percentage
FiscalAnnualof AnnualNet
YearOPEBOPEB CostOPEB
EndedCostConstributedObligation
12/31/2009235,557 79.2%131,847
12/31/2010199,721 102.0%127,854
12/31/2011199,657 87.4%152,972
4. Funded Status and Funding Progress
As of January 1, 2010, the most recent actuarial valuation date, the City’s unfunded actuarial accrued liability
(UAAL) was $2,145,167. The annual payroll for active employees covered by the plan in the actuarial valuation
was $6,244,081 for a ratio of UAAL to covered payroll of 34.36%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan
and the annual required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of funding progress,
presented as required supplementary information following the notes to the financial statements, presents
multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
5. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood
by the employer and plan members) and include the types of benefits provided at the time of each valuation and
the historical pattern of sharing of benefit costs between the employer and plan members to that point. The
actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term
77
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2011
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations.
In the January 1, 2010 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial
assumptions included a 4.5% investment rate of return (net of administrative expenses), which is a blended rate of
the expected long-term investment returns on plan assets and on the employer’s own investments calculated based
on the funded level of the plan at the valuation date. The initial healthcare trend rate was 9%, reduced by
decrements to an ultimate rate of 5% after nine years. Both rates include a 2.5% inflation assumption. The UAAL
is being amortized as a level percentage of projected payrolls on an open basis over a period not to exceed 30
years.
13. REHABILITATION LOANS RECEIVABLE
The City makes rehabilitation loans to residential and commercial entities within the City. Residential loans are
made for 20 year periods at 3% interest. A mortgage against the property improved is required and City staff is
responsible to follow-up any delinquent accounts. Loan repayments are made to Matrix Financial Services, a loan
service bureau, which charges a fee of $5.95 per month per loan. Principal and interest are forwarded to the City
monthly with loan collection and loan status reports. Rehabilitation loan activity is a function of the Economic
Development Fund, and the Hennepin County CDBG Funds. Loans become due in full upon sale of property.
Rehabilitation loans receivable amounted to $33,862 at December 31, 2011 and are recorded in the Economic
Development and Hennepin County CDBG non-major special revenue funds.
14. CLAIMS AND LITIGATION
The City had the usual and customary types of miscellaneous claims pending at year-end, which are of a minor
nature and usually all covered by insurance carried for that purpose. The City carries a $1,000,000 Public Official
Liability Insurance policy with public entity and employee endorsement.
15. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City participates in a public entity risk pool to mitigate
its exposure to these risks. Workers compensation and property and liability coverage are provided through a pooled
self-insurance plan with other cities. Settled claims have not exceeded insurance coverage in any of the past three
fiscal years and no significant reductions in coverage from the prior year. The City pays an annual premium based
on prior claims history for its workers compensation coverage. The public entity risk pool is responsible for the
payment of all associated claims. The City has a $20,000 deductible per occurrence with a maximum per year out of
pocket of $40,000, for its property and liability coverage. The public entity risk pool is responsible for all losses in
excess of $20,000 per occurrence and all losses occurring after the $40,000 maximum City out of pocket costs.
78
REQUIRED SUPPLEMENTARY
INFORMATION
79
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress
December 31, 2011
OTHER POSTEMPLOYMENT BENEFITS PLAN
ActuarialUAAL as a
ActuarialAccrued Percentage
ActuarialValue ofLiabilityUnfunded FundedCoveredof Covered
ValuationAssets(AAL)AALRatioPayrollPayroll
Date(a)(b)(b-a)(a/b)(c )((b-a)/c)
01/01/2007-$ 2,297,909$ $ 2,297,909$ 40.88%
-5,621,587
01/01/2010- 2,145,617 2,145,617 6,244,081- 34.36%
80
CITY OF HOPKINS, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS STATEMENTS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. Expenditures are restricted by law or administrative regulation for
specified purposes.
State Chemical Assessment Fund
– This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Real Estate Purchases and Sales Fund
- This fund records the acquisition and disposition of
various properties with the proceeds used to improve city buildings.
E-911 Service Fee
- This fund was established to account for the receipt of state funds
specifically to be used for the E-911 service.
Hennepin County CDBG
- This fund accounts for receipt for Community Development Block
Grant funds and the issuance of loans and grants for housing rehabilitation.
Tax Increment Funds
- These funds were established to record the use of tax increment
receipts and bond proceeds as applied in various Tax Increment Districts.
Housing Rehab Fund
- This fund was established to account for funds received under the
Community Development Block Grant funds and Section 8.
Parking Fund
- This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
Section 8 Housing Fund
– This fund administers the HUD Section 8 Rental Assistance
Program.
Communications Fund
- This fund records the City's share of a five-city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission.
Depot Coffee House Fund
– This fund accounts for the operations of the coffee house
business and the teen center operations that are supported through grant funds.
thth
5 Avenue Flats Fund
- This fund was established to account for the project costs of the 5
Avenue Flats project. Originally shown as a tax increment fund the project changed scope and
is no longer in a tax increment district.
81
DEBT SERVICE FUNDS
Debt Service Funds are established to finance and account for the payment of interest
and principal on all general obligation debt other than debt issued for and serviced by a
governmental enterprise. Provisions are made in the City's general property tax levy for
money sufficient to meet the general obligation debt.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature. (Special revenue and enterprise fund
resources are not included in this category.) These funds evolve from the needs for
special accounting for bond proceeds, grants and contributions for the acquisition of
capital assets.
Park Improvements Fund
- This fund was established to record construction and
improvement costs for park facilities.
Capital Improvement Fund
- This fund accounts for funds set aside for the
construction and improvement of City facility and infrastructure.
82
City of Hopkins
1 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Special Revenue Funds
StateReal EstateHennepin
ChemicalPurchasesE-911 CountyHousing
Assessment& SalesService FeeCDBGRehab
ASSETS
Cash and investments$ -$111,126$50$ -$3,109
Taxes receivable - - - - -
Special assessments receivable - - - - -
Accounts receivable - - - - -
Rehabilitation loans receivable - - -26,006 -
Due from other governments42,558 - -5,000 -
Accrued interest receivable -380 - - -
Prepaid expenses - - - - -
Long-term receivable - - - - -
Cash - temporarily restricted - - - - -
Total Assets$42,558$111,506$50$31,006$3,109
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$3,272$ -$ -$ -$627
Salaries payable953 - - -2,482
Accrued interest payable - - - - -
Due to other funds39,681 - -5,000 -
Due to other governments - - - - -
Deferred revenue - - - - -
Total Liabilities43,906 - -5,0003,109
Fund balances:
Non-spendable
- - -26,006 -
Restricted
- -50 - -
Committed
-111,506 - - -
Assigned
- - - - -
Unassigned
(1,348) - - - -
Total Fund Balances(1,348)111,5065026,006 -
Total Liabilities and Fund Balance$42,558$111,506$50$31,006$3,109
83
City of Hopkins
2 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Special Revenue Funds
Tax
IncrementTax
DepotDistrictIncrement
SectionCoffeeEntertainmentDistrict
Parking8HouseDistrictR.L. JohnsonCommunications
ASSETS
Cash and investments$216,370$353,320$ -$23,680$41,073$201,100
Taxes receivable - - - - - -
Special assessments receivable - - - - - -
Accounts receivable3,46053,614 - - - -
Rehabilitation loans receivable - - - - - -
Due from other governments1,570 - - - - -
Accrued interest receivable7401,206 -79161686
Prepaid expenses -125 -125 - -
Long-term receivable - - - - - -
Cash - temporarily restricted - - - - - -
Total Assets$222,140$408,265$ -$23,884$41,234$201,786
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$1,411$5,743$ -$7,070$176$214
Salaries payable1,6171,099 -2,456 - -
Accrued interest payable - - - - - -
Due to other funds - - - -241,704 -
Due to other governments - - -45 - -
Deferred revenue48,060 - - - - -
Total Liabilities51,0886,842 -9,571241,880214
Fund balances:
Non-spendable
-125 -125 - -
Restricted
- - - - -201,572
Committed
171,052401,298 -14,188 - -
Assigned
- - - - - -
Unassigned
- - - -(200,646) -
Total Fund Balances171,052401,423 -14,313(200,646)201,572
Total Liabilities and Fund Balance$222,140$408,265$ -$23,884$41,234$201,786
84
City of Hopkins
3 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Special Revenue Funds
TaxTax
TaxIncrementIncrement
IncrementDistrictDistrict
DistrictOaks ofMarketplace`
SonomaMainstreet5th Ave Flats& MainTotal
ASSETS
Cash and investments$ -$429,022$ -$ -$1,378,850
Taxes receivable -1,449 - -1,449
Special assessments receivable - - - - -
Accounts receivable9,640 -1,8001,43869,952
Rehabilitation loans receivable - - - -26,006
Due from other governments - - - -49,128
Accrued interest receivable -1,464 - -4,716
Prepaid expenses - - - -250
Long-term receivable - - - - -
Cash - temporarily restricted - - - - -
Total Assets$9,640$431,935$1,800$1,438$1,530,351
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$8$403$347$74$19,345
Salaries payable - - - -8,607
Accrued interest payable17 -1,259251,301
Due to other funds282,270 -368,4997,236944,390
Due to other governments - - - -45
Deferred revenue - - - -48,060
Total Liabilities282,295403370,1057,3351,021,748
Fund balances:
Non-spendable
- - - -26,256
Restricted
-431,532 - -633,154
Committed
- - - -698,044
Assigned
- - - - -
Unassigned
(272,655) -(368,305)(5,897)(848,851)
Total Fund Balances(272,655)431,532(368,305)(5,897)508,603
Total Liabilities and Fund Balance$9,640$431,935$1,800$1,438$1,530,351
85
City of Hopkins
4 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Debt Service Funds
Park and
Recreational
Refunding D
Bonds ofImprovementTaxHRA Lease
Housing1993, RefundingRevolvingIncrementRevenue
Bonds ofBonds ofBonds ofBonds ofBonds of
19952001200220022003
ASSETS
Cash and investments$135,512$ -$ -$153,902$132,273
Taxes receivable - - - -4,706
Special assessments receivable3,110 - - - -
Accounts receivable - - - - -
Rehabilitation loans receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable462 - -525451
Prepaid expenses - - - - -
Long-term receivable - - - - -
Cash - temporarily restricted - - -1,531,872229,867
Total Assets$139,084$ -$ -$1,686,299$367,297
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$80$ -$ -$76$38
Salaries payable - - - - -
Accrued interest payable - - - - -
Due to other funds - - - - -
Due to other governments - - - - -
Deferred revenue2,439 - - -4,169
Total Liabilities2,519 - -764,207
Fund balances:
Non-spendable
- - - - -
Restricted
136,565 - -1,686,223363,090
Committed
- - - - -
Assigned
- - - - -
Unassigned
- - - - -
Total Fund Balances136,565 - -1,686,223363,090
Total Liabilities and Fund Balance$139,084$ -$ -$1,686,299$367,297
86
City of Hopkins
5 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Debt Service Funds
Tax TaxTaxable Tax
IncrementIncrementIncrement
Bonds of 1996CBonds of 1997Bonds of 1996DImprovement
Capital
RefundingRefunding Refunding Revolving
Improvement
Bonds of Bonds of Bonds of Bonds of
Bonds of
2005A2005A2005B2007A2007B
ASSETS
Cash and investments$149,741$ -$ -$275,235$201,882
Taxes receivable - - -15,6493,665
Special assessments receivable - - - - -
Accounts receivable - - - - -
Rehabilitation loans receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable511939688
Prepaid expenses - - - - -
Long-term receivable - - - - -
Cash - temporarily restricted - - - - -
Total Assets$150,252$ -$ -$291,823$206,235
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$76$ -$ -$158$73
Salaries payable - - - - -
Accrued interest payable - - - - -
Due to other funds - - - - -
Due to other governments - - - - -
Deferred revenue - - -13,7393,203
Total Liabilities76 - -13,8973,276
Fund balances:
Non-spendable
- - - - -
Restricted
150,176 - -277,926202,959
Committed
- - - - -
Assigned
- - - - -
Unassigned
- - - - -
Total Fund Balances150,176 - -277,926202,959
Total Liabilities and Fund Balance$150,252$ -$ -$291,823$206,235
87
City of Hopkins
6 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Debt Service Funds
Tax
ImprovementIncrement
ImprovementBonds of 2002Bonds of 2002
RevolvingRefunding Refunding
Bonds ofBonds ofBonds of
2010A2010B2010BTotal
ASSETS
Cash and investments$176,512$123,401$24,512$1,372,970
Taxes receivable1,4261,349 -26,795
Special assessments receivable - - -3,110
Accounts receivable - - - -
Rehabilitation loans receivable - - - -
Due from other governments - - - -
Accrued interest receivable602421834,682
Prepaid expenses - - - -
Long-term receivable - - - -
Cash - temporarily restricted - - -1,761,739
Total Assets$178,540$125,171$24,595$3,169,296
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$ -$ -$ -$501
Salaries payable - - - -
Accrued interest payable - - - -
Due to other funds - - - -
Due to other governments - - - -
Deferred revenue1,1571,190 -25,897
Total Liabilities1,1571,190 -26,398
Fund balances:
Non-spendable
- - - -
Restricted
177,383123,98124,5953,142,898
Committed
- - - -
Assigned
- - - -
Unassigned
- - - -
Total Fund Balances177,383123,98124,5953,142,898
Total Liabilities and Fund Balance$178,540$125,171$24,595$3,169,296
88
City of Hopkins
7 of 7
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2011
Capital Project Funds
Total
CapitalNon-major
ParkImprovementGovernmental
ImprovementsFundTotalFunds
ASSETS
Cash and investments$96,091$271,164$367,255$3,119,075
Taxes receivable1,1461,8082,95431,198
Special assessments receivable - - -3,110
Accounts receivable - - -69,952
Rehabilitation loans receivable - - -26,006
Due from other governments3,977 -3,97753,105
Accrued interest receivable3289251,25310,651
Prepaid expenses - - -250
Long-term receivable12,000 -12,00012,000
Cash - temporarily restricted - - -1,761,739
Total Assets$113,542$273,897$387,439$5,087,086
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$202$ -$202$20,048
Salaries payable - - -8,607
Accrued interest payable - - -1,301
Due to other funds - - -944,390
Due to other governments - - -45
Deferred revenue1,1461,4262,57276,529
Total Liabilities1,3481,4262,7741,050,920
Fund balances:
Non-spendable
12,000 -12,00038,256
Restricted
100,194 -100,1943,876,246
Committed
- - -698,044
Assigned
-272,471272,471272,471
Unassigned
- - -(848,851)
Total Fund Balances112,194272,471384,6654,036,166
Total Liabilities and Fund Balance$113,542$273,897$387,439$5,087,086
89
City of Hopkins
1 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Special Revenue Funds
StateReal EstateHennepin
ChemicalPurchasesE-911 CountyHousing
Assessment& SalesService FeeCDBGRehab
Revenues
Property tax$ -$ -$ -$ -$ -
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue106,285 -24,8605,000 -
Fees, licenses and permits - - - - -
Charges for services -3,700 - - -
Investment earnings -66350 -1,698
Other59,079 - - - -
Total Revenues165,3644,36324,9105,0001,698
Expenditures
Current:
General government - - - - -
Public safety111,248 -24,860 - -
Highways and streets - - - - -
Urban redevelopment and housing - - -19,77186,907
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement - - - - -
Interest and fiscal fees - - - - -
Total Expenditures111,248 -24,86019,77186,907
Excess (deficiency) of revenues over
expenditures54,1164,36350(14,771)(85,209)
Other Financing Sources (Uses):
Refunded bond payment - - - - -
Transfers in - - - - -
Transfers out - - - -(499,123)
Total Other Financing Sources (Uses) - - - -(499,123)
Net change in fund balances54,1164,36350(14,771)(584,332)
Fund Balance (Deficit) - January 1(55,464)107,143 -40,777584,332
Fund Balance (Deficit) - December 31$(1,348)$111,506$50$26,006$ -
90
City of Hopkins
2 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Special Revenue Funds
Tax
IncrementTax
DepotDistrictIncrement
SectionCoffeeEntertainmentDistrict
ParkingCommunications8HouseDistrictR.L. Johnson
Revenues
Property tax$ -$ -$ -$ -$ -$ -
Tax increment - - - -52,736 -
Special assessments - - - - - -
Intergovernmental revenue - - - - - -
Fees, licenses and permits21,901210,050 - - - -
Charges for services66,526 - -65,216 - -
Investment earnings1,5182,712645796341,428
Other - - -22,532 - -
Total Revenues89,945212,76264587,82753,3701,428
Expenditures
Current:
General government -101,043 - - - -
Public safety57,755 - - - - -
Highways and streets30,560 - - - - -
Urban redevelopment and housing - -97 -3,25410,744
Recreation - - -101,177 - -
Capital outlay26,05525,129 - -75,000 -
Debt Service:
Principal retirement - - - - - -
Interest and fiscal fees - - - -17,086 -
Total Expenditures126,17297101,17795,34010,744114,370
Excess (deficiency) of revenues over
expenditures86,590548(13,350)(41,970)(9,316)(24,425)
Other Financing Sources (Uses):
Refunded bond payment - - - - - -
Transfers in - - -10,000 -4,419
Transfers out -(86,920)(92,554) - - -
Total Other Financing Sources (Uses) -(86,920)(92,554)10,000 -4,419
Net change in fund balances(330)(92,006)(3,350)(41,970)(4,897)(24,425)
Fund Balance (Deficit) - January 1195,477401,75392,00617,663(158,676)206,469
Fund Balance (Deficit) - December 31$171,052$401,423$ -$14,313$(200,646)$201,572
91
City of Hopkins
3 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Special Revenue Funds
Tax
TaxIncrementTax
IncrementDistrictIncrement
DistrictOaks of5th AvenueMarketplace
SonomaMainstreetFlats& MainTotal
Revenues
Property tax$ -$ -$ -$ -$ -
Tax increment9,418136,30110,805 -209,260
Special assessments - - - - -
Intergovernmental revenue -10,966 - -147,111
Fees, licenses and permits - - - -231,951
Charges for services - - - -135,442
Investment earnings362,844 - -12,307
Other9,640 - -6,47597,726
Total Revenues19,094150,11110,8056,475833,797
Expenditures
Current:
General government - - - -101,043
Public safety - - - -193,863
Highways and streets - - - -30,560
Urban redevelopment and housing1,9616,351168,70010,127307,912
Recreation - - - -101,177
Capital outlay - - - -126,184
Debt Service:
Principal retirement - - - - -
Interest and fiscal fees - -2,3269619,508
Total Expenditures1,9616,351171,02610,223880,247
Excess (deficiency) of revenues over
expenditures17,133143,760(160,221)(3,748)(46,450)
Other Financing Sources (Uses):
Refunded bond payment - - - - -
Transfers in -37,248 - -51,667
Transfers out -(119,000) - -(797,597)
Total Other Financing Sources (Uses) -(81,752) - -(745,930)
Net change in fund balances17,13362,008(160,221)(3,748)(792,380)
Fund Balance (Deficit) - January 1(289,788)369,524(208,084)(2,149)1,300,983
Fund Balance (Deficit) - December 31$(272,655)$431,532$(368,305)$(5,897)$508,603
92
City of Hopkins
4 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Debt Service Funds
Park and
Recreational
Refunding D
Bonds ofImprovementTaxHRA Lease
Housing1993 RefundingRevolvingIncrementRevenue
Bonds ofBonds ofBonds ofBonds ofBonds of
19952001200220022003
Revenues
Property tax$ -$ -$ -$ -$194,965
Tax increment - - - - -
Special assessments98,979 - - - -
Intergovernmental revenue - - - - -
Fees, licenses and permits - - - - -
Charges for services - - - - -
Investment earnings618 - -4,525429
Other - - - - -
Total Revenues99,597 - -4,525195,394
Expenditures
Current:
General government80 - -7639
Public safety - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - - - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service: -
Principal retirement95,000110,000110,000105,000130,000
Interest and fiscal fees4,0752,3036,763103,83287,391
Total Expenditures99,155112,303116,763208,908217,430
Excess (deficiency) of revenues over
expenditures442(112,303)(116,763)(204,383)(22,036)
Other Financing Sources (Uses):
Refunded bond payment - -(215,000) - -
Transfers in - - -164,000 -
Transfers out -(2,581)(8,266) - -
Total Other Financing Sources (Uses) -(2,581)(223,266)164,000 -
Net change in fund balances442(114,884)(340,029)(40,383)(22,036)
Fund Balance (Deficit) - January 1136,123114,884340,0291,726,606385,126
Fund Balance (Deficit) - December 31$136,565$ -$ -$1,686,223$363,090
93
City of Hopkins
5 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Debt Service Funds
Tax TaxTaxable Tax
IncrementIncrementIncrement
Bonds of 1996CBonds of 1997Bonds of 1996DImprovement
Capital
RefundingRefunding Refunding Revolving
Improvement
Bonds of Bonds of Bonds of Bonds of
Bonds of
2005A2005A2005B2007A2007B
Revenues
Property tax$ -$ -$ -$692,138$167,667
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue - - - - -
Fees, licenses and permits - - - - -
Charges for services - - - - -
Investment earnings801 - - -744
Other - - - - -
Total Revenues801 - -692,138168,411
Expenditures
Current:
General government76 - -15874
Public safety - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - - - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement5,000405,00095,000510,000175,000
Interest and fiscal fees18,3507,8642,315349,67966,006
Total Expenditures23,426412,86497,315859,837241,080
Excess (deficiency) of revenues over
expenditures(22,625)(412,864)(97,315)(167,699)(72,669)
Other Financing Sources (Uses):
Refunded bond payment - - - - -
Transfers in119,000 - -145,00071,900
Transfers out -(4,419)(37,248) - -
Total Other Financing Sources (Uses)119,000(4,419)(37,248)145,00071,900
Net change in fund balances96,375(417,283)(134,563)(22,699)(769)
Fund Balance (Deficit) - January 153,801417,283134,563300,625203,728
Fund Balance (Deficit) - December 31$150,176$ -$ -$277,926$202,959
94
City of Hopkins
6 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Debt Service Funds
Tax
ImprovementIncrement
ImprovementBonds of 2002Bonds of 2002
RevolvingRefunding Refunding
Bonds ofBonds ofBonds of
2010A2010B2010BTotal
Revenues
Property tax$96,242$57,515$ -$1,208,527
Tax increment - - - -
Special assessments - - -98,979
Intergovernmental revenue - - - -
Fees, licenses and permits - - - -
Charges for services - - - -
Investment earnings8616181208,716
Other - - - -
Total Revenues97,10358,1331201,316,222
Expenditures
Current:
General government - - -503
Public safety - - - -
Highways and streets - - - -
Urban redevelopment and housing - - - -
Recreation - - - -
Capital outlay - - - -
Debt Service: -
Principal retirement - - -1,740,000
Interest and fiscal fees41,012952 -690,542
Total Expenditures41,012952 -2,431,045
Excess (deficiency) of revenues over
expenditures56,09157,181120(1,114,823)
Other Financing Sources (Uses):
Refunded bond payment - - -(215,000)
Transfers in120,59266,48524,000710,977
Transfers out - - -(52,514)
Total Other Financing Sources (Uses)120,59266,48524,000443,463
Net change in fund balances176,683123,66624,120(671,360)
Fund Balance (Deficit) - January 17003154753,814,258
Fund Balance (Deficit) - December 31$177,383$123,981$24,595$3,142,898
95
City of Hopkins
7 of 7
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended December 31, 2011
Capital Projects Funds
Total
CapitalNon-major
ParkImprovementGovernmental
ImprovementsFundTotalFunds
Revenues
Property tax$1,346$96,141$97,487$1,306,014
Tax increment - - -209,260
Special assessments - - -98,979
Intergovernmental revenue - - -147,111
Fees, licenses and permits - - -231,951
Charges for services - - -135,442
Investment earnings1,5851,8223,40724,430
Other - - -97,726
Total Revenues2,93197,963100,8942,250,913
Expenditures
Current:
General government - - -101,546
Public safety - - -193,863
Highways and streets - - -30,560
Urban redevelopment and housing - - -307,912
Recreation - -101,177
Capital outlay125,94647,328173,274299,458
Debt Service: -
Principal retirement - - -1,740,000
Interest and fiscal fees - - -710,050
Total Expenditures125,94647,328173,2743,484,566
Excess (deficiency) of revenues over
expenditures(123,015)50,635(72,380)(1,233,653)
Other Financing Sources (Uses):
Refunded bond payment - - -(215,000)
Transfers in2,581 -2,581765,225
Transfers out - - -(850,111)
Total Other Financing Sources (Uses)2,581 -2,581(299,886)
Net change in fund balances(120,434)50,635(69,799)(1,533,539)
Fund Balance (Deficit) - January 1232,628221,836454,4645,569,705
Fund Balance (Deficit) - December 31$112,194$272,471$384,665$4,036,166
96
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
State Chemical Assessment Team Fund Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Intergovernmental revenue:
45,000106,285
State grant$$$61,285
-59,079
Other59,079
45,000165,364
120,364
Expenditures:
37,20039,512
Salaries and employee benefits(2,312)
7,80071,736
Materials, supplies and services(63,936)
45,000111,248
Total Expenditures(66,248)
-54,11654,116
Net change in fund balance
(55,464)(55,464)
Fund Balance - January 1-
Fund Balance - December 31$(55,464)$(1,348)$54,116
97
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Real Estate Purchases and Sales Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Charges for services$3,700$3,700$ -
Investment earnings2,100663(1,437)
Total Revenues5,8004,363(1,437)
Expenditures:
Materials, supplies and services - - -
Net change in fund balance5,8004,363(1,437)
Fund Balance - January 1107,143107,143 -
Fund Balance - December 31$112,943$111,506$(1,437)
98
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Housing Rehab Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Investment earnings$3,500$1,698$(1,802)
Total Revenues3,5001,698(1,802)
Expenditures:
Salaries and employee benefits78,14868,5749,574
Materials, supplies and services22,59518,3334,262
Total Expenditures100,74386,90713,836
Other Financing Uses:
Transfer to General Fund -(499,123)(499,123)
Net change in fund balance(97,243)(584,332)(514,761)
Fund Balance - January 1584,332584,332 -
Fund Balance - December 31$487,089$ -$(514,761)
99
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Parking Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Court fines$20,000$21,901$1,901
Charges for services58,00066,5268,526
Investment earnings4,0001,518(2,482)
Total Revenues82,00089,9457,945
Expenditures:
Salaries and employee benefits46,33543,1003,235
Materials, supplies and services41,95845,215(3,257)
Capital outlay30,00026,0553,945
Total Expenditures118,293114,3703,923
Net change in fund balance(36,293)(24,425)11,868
Fund Balance - January 1195,477195,477 -
Fund Balance - December 31$159,184$171,052$11,868
100
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Communications Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Franchise fees$200,000$210,050$10,050
Investment earnings4,0002,712(1,288)
Total Revenues204,000212,7628,762
Expenditures:
Salaries and employee benefits32,29032,384(94)
Materials, supplies and services81,76468,65913,105
Capital outlay26,90025,1291,771
Total Expenditures140,954126,17214,782
Excess of revenues over expenditures63,04686,59023,544
Other Financing Uses:
Transfer to Art Center Fund(86,920)(86,920) -
Net change in fund balance(23,874)(330)23,544
Fund Balance - January 1401,753401,753 -
Fund Balance - December 31$377,879$401,423$23,544
101
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Depot Coffee House Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Intergovernmental:
State grant $10,000$ -$(10,000)
Charges for services52,00065,21613,216
Investment earnings90079(821)
Contributions7,0002,532(4,468)
Other53,00020,000(33,000)
Total Revenues122,90087,827(35,073)
Expenditures:
Salaries and employee benefits85,80674,84910,957
Materials, supplies and services37,06126,32810,733
Capital outlay - - -
Total Expenditures122,867101,17721,690
Excess of revenues over expenditures33(13,350)(13,383)
Other Financing Uses:
Transfer from General Fund -10,00010,000
Net change in fund balance33(3,350)(3,383)
Fund Balance - January 117,66317,663 -
Fund Balance - December 31$17,696$14,313$(3,383)
102
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Tax Increment District Entertainment District Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax increment$55,000$52,736$(2,264)
Investment earnings1,500634(866)
Total Revenues56,50053,370(3,130)
Expenditures:
Materials, supplies and services3,0003,254(254)
Capital outlay:
Public improvements75,00075,000 -
Debt Service:
Interest and fiscal fees -17,086(17,086)
Total Expenditures78,00095,340(17,340)
Net change in fund balance(21,500)(41,970)(20,470)
Fund Balance - January 1(158,676)(158,676) -
Fund Balance - December 31$(180,176)$(200,646)$(20,470)
103
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Tax Increment District R.L. Johnson Company Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Investment earnings$100$1,428$1,328
Total Revenues1001,4281,328
Expenditures:
Materials, supplies and services12,26910,7441,525
Other Financing Uses
Transfer from debt service -4,4194,419
Net change in fund balance(12,169)(4,897)7,272
Fund Balance - January 1206,469206,469 -
Fund Balance - December 31$194,300$201,572$7,272
104
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Tax Increment District Sonoma Project Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax increment$10,500$9,418$(1,082)
Investment earnings30036(264)
Other8,5249,6401,116
19,32419,094(230)
Expenditures:
Materials, supplies and services1,9001,961(61)
Net change in fund balance17,42417,133(291)
Fund Balance (Deficit) - January 1(289,788)(289,788)-
Fund Balance (Deficit) - December 31$(272,364)$(272,655)$(291)
105
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Tax Increment District Oaks of Mainstreet Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes
Tax increment$150,000$136,301$(13,699)
Intergovernmenal
Market value aid credit9,80010,9661,166
Investment earnings5,0002,844(2,156)
Total Revenues164,800150,111(14,689)
Expenditures
Materials, supplies and services6,0396,351(312)
Other Financing Sources (Uses):
Transfer in from debt service -37,24837,248
Transfer out for debt service(119,000)(119,000) -
Net change in fund balance39,76162,00822,871
Fund Balance - January 1369,524369,524 -
Fund Balance - December 31$409,285$431,532$22,871
106
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
5th Avenue Flats Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Tax increment$19,100$10,805$(8,295)
Other3,000 -(3,000)
Total Revenues22,10010,805(11,295)
Expenditures:
Materials, supplies and services6,250168,700(162,450)
Debt service:
Interest -2,326(2,326)
Total Expenditures6,250171,026(164,776)
Net change in fund balance15,850(160,221)(176,071)
Fund Balance - January 1(208,084)(208,084) -
Fund Balance - December 31$(192,234)$(368,305)$(176,071)
107
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Tax Increment District Marketplace & Main Special Revenue Fund
Year Ended December 31, 2011
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Other$13,500$6,475$(7,025)
Total Revenues13,5006,475(7,025)
Expenditures:
Materials, supplies and services16,35010,1276,223
Debt service:
Interest -96(96)
Total Expenditures16,35010,2236,127
Net change in fund balance(2,850)(3,748)(898)
Fund Balance - January 1(2,149)(2,149) -
Fund Balance - December 31$(4,999)$(5,897)$(898)
108
CITY OF HOPKINS, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units, which render services to the general public on a user
charge basis. Records are maintained on the accrual basis of accounting.
The Authority for these types of funds is derived from Section 11.01 of the City Charter,
which allows for utility or other public service enterprise funds.
The City has six Enterprise Funds, two of which are considered to be nonmajor, they
are:
Refuse Utility Fund
– This fund accounts operations of the city owned refuse service.
Housing Authority Fund
– This fund accounts for the operations of the city owned
federally subsidized apartment building.
109
City of Hopkins
Combining Statement of Net Assets
Nonmajor Enterprise Funds
December 31, 2011
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
RefuseHousing
Enterprise Funds
UtilityAuthority
Total
ASSETS
Current assets
$549,428$459,093$1,008,521
Cash and investments
46,69915446,853
Accounts receivable
1,879 -1,879
Accrued interest receivable
-82,35082,350
Due from other governments
2,596 -2,596
Inventory
600,602541,5971,142,199
Total current assets
Noncurrent assets
Capital Assets:
-180,066180,066
Land
-75,11375,113
Construction in progress
302,7274,092,3784,395,105
Buildings and structures
2,584 -2,584
Distribution system
662,93350,439713,372
Machinery and equipment
(404,545)(2,774,755)(3,179,300)
Less accumulated depreciation
563,6991,623,2412,186,940
Total noncurrent assets
1,164,3012,164,8383,329,139
Total assets
LIABILITIES
Current Liabilities:
21,76251,80373,565
Accounts payable
7,212 -7,212
Salaries payable
-222,978222,978
Due to other funds
5,795 -5,795
Due to other governments
15,26616,66131,927
Compensated absences
50,035291,442341,477
Total current liabilities
Noncurrent Liabilities:
10,524 -10,524
Compensated absences
5,6627,01112,673
Net OPEB liability
16,1867,01123,197
66,221298,453364,674
Total liabilities
NET ASSETS
563,6991,623,2412,186,940
Invested in capital assets
534,381243,144777,525
Unrestricted
$1,098,080$1,866,385$2,964,465
Total net assets
110
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Assets
Nonmajor Enterprise Funds
For the Year Ended December 31, 2011
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
RefuseHousingEnterprise Funds
UtilityAuthorityTotal
Operating revenues:
Charges for services$927,003$231,542$1,158,545
Other12,41823,64636,064
Total operating revenues939,421255,1881,194,609
Operating expenses:
Cost of sales and service569,641377,338946,979
Administration152,13783,333235,470
Depreciation56,266142,452198,718
Total operating expenses778,044603,1231,381,167
Operating income (loss)161,377(347,935)(186,558)
Nonoperating revenues (expenses):
Investment earnings4,216 -4,216
Intergovernmental grants43,697146,745190,442
Gain on sale of assets23,671 -23,671
Loss on disposal of asset -(3,967)(3,967)
Total nonoperating revenues
(expenses)71,584142,778214,362
Income (loss) before contributions and
transfers232,961(205,157)27,804
Capital contributions
Building improvements -28,25028,250
Transfers out(25,000) -(25,000)
Change in net assets207,961(176,907)31,054
Total net assets - beginning890,1192,043,2922,933,411
Total net assets - ending$1,098,080$1,866,385$2,964,465
111
City of Hopkins
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2011
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
RefuseHousingEnterpirse Funds
UtilityAuthorityTotal
Cash Flows from Operating Activities
Receipts from customers and users$939,977$234,489$1,174,466
Payments to suppliers(325,045)(331,988)(657,033)
Payments to employees(229,355)(79,095)(308,450)
Payments for interfund services used(152,137)(5,337)(157,474)
Net cash used by operating activities233,440(181,931)51,509
Cash Flows from Noncapital Financing Activities
Intergovernmental grants43,697174,995218,692
Transfers (to) from other funds(25,000) -(25,000)
Net cash provided (used) by noncapital and related financing activities18,697174,995193,692
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets(210,833)(198,787)(409,620)
Proceeds from sales of capital assets23,671 -23,671
Net cash provided (used) by capital and related financing activities(187,162)(198,787)(385,949)
Cash Flows From Investing Activities
Interest received3,358 -3,358
Net increase (decrease) in cash and investments68,333(205,723)(137,390)
Cash and investments - January 1481,095664,8161,145,911
Cash and investments - December 31$549,428$459,093$1,008,521
Reconciliation of operating loss to net cash used by operating activities:
Operating income (loss)$161,377 $(347,935) $(186,558)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Depreciation expense56,266 142,452 198,718
(Increase) decrease in:
Accounts receivable556 (20,699) (20,143)
Inventory1,362 - 1,362
17,723
Prepaid expense-17,723
Increase (decrease) in:
31,865
Accounts, compensated absences and accrued interest payable13,87945,744
Due to other funds-(5,337)(5,337)
Net Cash Used by Operating Activities$233,440 $(181,931) $51,509
Noncash Investing, capital and financing activities
Capital asset loss$ -$(3,967)$(3,967)
Capital contribution$ -$28,250$28,250
112
CITY OF HOPKINS, MINNESOTA
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the government, on a cost
reimbursement basis. Revenues and expenses are recognized on the accrual basis.
Revenues are recognized in the accounting period in which they are earned and
become objectively measurable; expenses are recognized in the period incurred, if
objectively measurable.
Equipment Replacement Fund
– This fund accounts for the acquisition of machinery
and equipment. User charges are billed to the various City departments.
Insurance Risk Fund
– This fund accounts for the dividends and deductibles relating to
property and casualty insurance coverage. Deductibles are paid from past dividends.
Users are charged only if the fund has a shortfall.
Employee Benefits Fund
– This fund accounts for accrued employee benefits within
the governmental funds. User charges are billed to the various departments.
113
City of Hopkins
Combining Statement of Net Assets
Internal Service Funds
December 31, 2011
EquipmentInsuranceEmployee
ReplacementRiskBenefitsTotal
ASSETS
Current assets:
Cash and investments$902,064$149,655$908,861$1,960,580
Accounts receivable264 - -264
Advance to other funds44,963 - -44,963
Accrued interest receivable3,0625113,4216,994
Due from other funds487 - -487
Total current assets950,840150,166912,2822,013,288
Property and equipment
Machinery and equipment6,744,358 - -6,744,358
Less accumulated depreciation(4,010,673) - -(4,010,673)
Net property and equipment2,733,685 - -2,733,685
Total assets3,684,525150,166912,2824,746,973
LIABILITIES
Current liabilities:
Accounts payable12,7762,040 -14,816
Accrued interest payable2,912 - -2,912
Compensated absences payable - -749,579749,579
Capital lease - current39,158 - -39,158
Total current liabilities54,8462,040749,579806,465
Noncurrent liabilities
Compensated absences payable - -23,20423,204
Capital lease payable279,083 - -279,083
Total noncurrent liabilities279,083 -23,204302,287
Total liabilities333,9292,040772,7831,108,752
NET ASSETS
Invested in capital assets, net of related debt2,415,444 - -2,415,444
Unrestricted935,152148,126139,4991,222,777
Total net assets$3,350,596$148,126$139,499$3,638,221
114
CITY OF HOPKINS, MINNESOTA
Combining Statement of Revenues Expenses, and Changes in Net Assets
Internal Service Funds
Year Ended December 31, 2011
EquipmentInsuranceEmployee
ReplacementRiskBenefitsTotal
Operating revenues:
Charges for services$302,012$56,451$ -$358,463
Operating expenses (excluding depreciation):
Materials, supplies and services23,99525,601 -49,596
Operating income before depreciation278,01730,850 -308,867
Depreciation expense461,824 - -461,824
Operating gain (loss)(183,807)30,850 -(152,957)
Nonoperating revenues (expenses):
Investment earnings6,6628607,02414,546
Gain on sale of property and equipment42,343 - -42,343
Interest expense(16,559) - -(16,559)
Total nonoperating revenues32,4468607,02440,330
Change in net assets(151,361)31,7107,024(112,627)
Net assets - January 13,501,957116,416132,4753,750,848
Net assets - December 31$3,350,596$148,126$139,499$3,638,221
115
City of Hopkins
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2011
EquipmenInsuranceEmployee
t
ReplacementRiskBenefits
Totals
Cash Flows from Operating Activities
Receipts from customers and users$ -$57,875$ -$57,875
Receipts from interfund services provided324,454 - -324,454
Payments to suppliers(5,877)(72,682) -(78,559)
Payments for interfund services used(11,547) -(93,670)(105,217)
Net cash provided (used) by operating activities307,030(14,807)(93,670)198,553
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets(327,933) - -(327,933)
Proceeds from sales of capital assets42,343 - -42,343
Interest and other payments(16,901) - -(16,901)
Capital lease payments(37,315) - -(37,315)
Net cash used by capital and related
financing activities(339,806) - -(339,806)
Cash Flows From Investing Activities 5,5676955,67011,932
Net increase (decrease) in cash and cash equivalents(27,209)(14,112)(88,000)(129,321)
Cash and Cash Equivalents - January 1929,273163,767996,8612,089,901
Cash and Cash Equivalents - December 31$902,064$149,655$908,861$1,960,580
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)$(183,807)$30,850$ -$(152,957)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation expense461,824 - -461,824
(Increase) decrease in:
Accounts receivable(701)1,424 -723
Due from other funds23,143 - -23,143
Increase (decrease) in:
Accounts, compensated absences and accrued intereset
payable6,571(47,081)(93,670)(134,180)
Net Cash Provided (Used) by Operating Activities$307,030$(14,807)$(93,670)$198,553
116
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2011
SECTION III
STATISTICAL SECTION
117
CITY OF HOPKINS, MINNESOTA
STATISTICAL SECTION
This part of the City of Hopkins’ comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and the required supplementary information says about the city’s overall financial
health
.
ContentsPage
Financial Trends 119
These schedules contain trend information to help the reader understand how the
city’s financial performance and well-being have changed over time.
Revenue Capacity 126
These schedules contain information to help the reader assess the factors affecting
the city’s ability to generate its property and sales taxes.
Debt Capacity 130
These schedules present information to help the reader assess the affordability of the
city’s current levels of outstanding debt and the city’s ability to issue additional debt in
the future.
Demographic and Economic Information 135
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the city’s financial activities take place and
to help make comparisons over time and with other governments.
Operating Information 137
These schedules contain information about the city’s operations and resources to
help the reader understand how the city’s financial information relates to the services
the city provides and the activities it performs.
Sources:
Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The city implemented Statement
34 in 2003; schedules presenting government-wide information include information beginning
in that year.
118
Schedule 1
-
$ 17,806,958$ 48,741,716
$ 31,666,432 8,250,360 6,348,703$ 46,265,495$ 17,075,284 731,6748,250,3607,080,37764,072,453
200320042005200620072008200920102011
$$$$$$
-
$ 32,823,582 8,613,114 3,590,101$ 45,026,797$ 16,279,028 1,073,329$ 17,352,357$ 49,102,6108,613,1144,663,43062,379,154
$
-
$ 47,753,791
$ 32,759,480 11,952,783 10,022$ 44,722,285$ 14,994,311 1,655,927$ 16,650,23811,952,7831,665,94961,372,523
$
-
$ 30,769,922 10,074,674 3,663,772$ 44,508,368$ 16,081,209 280,214$ 16,361,423$ 46,851,13110,074,6743,943,986
60,869,791
$
-
$ 44,629,534
$ 28,941,120 13,879,837 2,006,418$ 44,827,375$ 15,688,414 733,298$ 16,421,71213,879,8372,739,71661,249,087
Fiscal Year
$
NET ASSETS BY COMPONENT,
(accrual basis of accounting)
LAST NINE FISCAL YEARS
-
$ 25,315,084 6,189,025 10,849,585$ 42,353,694$ 14,612,000 1,917,071$ 16,529,071$ 39,927,0846,189,025
12,766,65658,882,765
CITY OF HOPKINS
$
The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
$ 36,639,193
$ 22,318,027 9,921,122 9,056,853$ 41,296,002$ 14,321,166 250,000 1,464,913$ 16,036,07910,171,12210,521,76657,332,081
$
$ 26,330,7349,259,337
$ 11,950,343 9,009,337 20,189,189$ 41,148,869$ 14,380,391 250,000 1,778,422$ 16,408,813
21,967,61157,557,682
$
Restricted-
Invested in capital assets, net of related debt28,884,964Restricted287,418
Invested in capital assets, net of related debt15,459,174Restricted287,418Unrestricted22,415,733Total governmental activities net assets38,162,325Invested in capital assets, net of related
debt13,425,790Unrestricted3,196,697Total business-type activities net assets16,622,48725,612,43054,784,812
$
Total primary government net assets
Business-type activities
Governmental activities
Primary Government
Unrestricted
Note:
119
CITY OF HOPKINS
CHANGES IN NET ASSETS,
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
200320042005200620072008
Expenses
Governmental activities:
General Government1,411,159$ 1,150,064$ 1,380,540$ 1,402,448$ 1,679,630$ 1,721,624$
Public Safety4,477,224 4,750,296 4,883,279 5,039,235 5,665,419 6,171,249
Health and Welfare185,893 180,314 176,590 176,275 188,483 236,858
Highways and Streets2,229,671 2,114,601 2,334,756 2,380,252 2,870,426 3,154,762
Urban Development and Housing1,596,395 939,846 913,645 1,022,476 1,903,295 1,037,927
Culture and Recreation1,220,030 1,193,801 1,277,501 1,123,334 1,277,539 1,565,184
Interest on long-term debt1,650,989 1,604,523 1,480,148 1,282,328 1,069,863 1,090,341
Total governmental activities expenses12,771,361 11,933,445 12,446,459 12,426,348 14,654,655 14,977,945
Business-type activities:
Water1,075,399 1,053,600 1,080,393 1,117,037 1,240,760 1,356,448
Sewer1,459,743 1,410,200 1,475,587 1,608,116 1,784,001 1,756,489
Storm Sewer409,282 429,768 457,183 408,252 416,479 417,595
Refuse654,721 686,883 739,490 714,389 732,239 771,107
Pavilion/Ice Arena339,511 367,367 395,722 371,845 385,062 411,134
Skate Park18,199 44,056 90,268 - - -
Housing and Redevelopment Authority448,669 425,024 501,731 525,588 483,944 573,070
Total business-type activities4,405,524 4,416,898 4,740,374 4,745,227 5,042,485 5,285,843
Total primary government expenses17,176,885$ 16,350,343$17,186,833$ 17,171,575$19,697,140$ 20,263,788$
Program Revenues
Governmental activities:
Charges for services:
General Government301,021$ 28,792$ 34,760$ 19,727$ 38,595$ 19,239$
Public Safety1,179,448 65,692 70,597 70,604 219,121 262,194
Health and Welfare18,497 14,183 13,560 15,817 13,866 16,560
Highways and Streets720,524 51,233 225,523 60,698 59,791 59,803
Urban Development and Housing293,634 200,000 200,054 90,727 30,363 -
Culture and Recreation351,011 482,549 557,973 401,860 397,992 514,592
Operating grants and contributions1,394,761 2,110,441 1,471,449 1,422,575 2,123,438 1,949,375
Capital grants and contributions764,138 1,466,971 58,871 687,552 1,677,841 170,393
Total governmental activities program revenues5,023,034 4,419,861 2,632,787 2,769,560 4,561,007 2,992,156
Business-type activities:
Charges for services:
Water942,795 826,129 987,913 1,063,361 1,133,248 1,188,610
Sewer1,324,254 1,253,772 1,277,724 1,645,661 1,427,675 1,474,474
Storm Sewer666,524 717,691 666,848 735,183 724,778 725,029
Refuse515,930 590,885 705,138 687,127 692,222 713,270
Pavilion/Ice Arena275,488 361,297 347,343 672,739 459,003 358,645
Skate Park5,655 - - - - -
Housing and Redevelopment Authority427,495 267,646 270,723 265,277 256,104 348,938
Operating grants and contributions304,350 232,689 158,270 209,533 299,126 251,885
Capital grants and contributions98,873 975 16,298 1,850 - 394,913
Total business-type activities program revenues4,561,364 4,251,084 4,430,257 5,280,731 4,992,156 5,455,764
Total primary government program revenues9,584,398$ 8,670,945$ 7,063,044$ 8,050,291$ 9,553,163$ 8,447,920$
Net (Expense)/Revenue
Governmental activities(7,748,327)$ (7,513,584)$ (9,813,672)$ (9,656,788)$ (10,093,648)$ (11,985,789)$
Business-type activities155,840 (165,814) (310,117) 535,504 (50,329) 169,921
Total primary government net expense(7,592,487)$ (7,679,398)$ (10,123,789)$(9,121,284)$ (10,143,977)$(11,815,868)$
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes6,877,331$ 7,289,973$ 7,845,641$ 8,200,725$ 8,732,711$ 9,497,650$
Tax Increments2,214,833 2,177,518 970,846 990,776 1,050,601 1,186,395
Unrestricted grants and contributions691,438 566,514 603,307 579,440 564,396 434,163
Unrestricted investment earnings327,959 339,883 389,548 790,079 754,338 387,424
Gain on sale of capital assets- - 43,955 8,460 9,456 16,150
Transfers- 126,240 107,508 145,000 145,000 145,000
Total governmental activities10,111,561 10,500,128 9,960,805 10,714,480 11,256,502 11,666,782
Business-type activities:
Unrestricted investment earnings88,767 78,380 44,891 102,488 84,670 21,714
Gain on sale of capital assets- - - - 3,300 -
Loss on disposal of capital assets- - - - - (106,924)
Transfers- (126,240) (107,508) (145,000) (145,000) (145,000)
Total business-type activities88,767 (47,860) (62,617) (42,512) (57,030) (230,210)
Total primary government10,200,328$ 10,452,268$9,898,188$ 10,671,968$11,199,472$ 11,436,572$
Change in Net Assets
Governmental activities2,363,234 2,986,544 147,133 1,057,692 1,162,854 (319,007)
Business-type activities244,607 (213,674) (372,734) 492,992 (107,359) (60,289)
Total primary government2,607,841$ 2,772,870$ (225,601)$ 1,550,684$ 1,055,495$ (379,296)$
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
120
Schedule 2
Fiscal Year
200920102011
$ 1,693,2751,679,040$ 1,719,970$
6,243,8136,249,519 6,213,995
180,895278,002 170,018
3,062,5073,069,078 3,332,067
1,914,7791,690,861 2,859,900
1,505,5131,482,349 1,644,834
895,8731,025,771 871,902
15,496,65515,474,620 16,812,686
1,196,9471,209,508 1,263,835
1,844,3091,741,115 1,800,126
420,619403,231 407,057
738,398786,522 778,044
398,354401,598 416,166
-- -
542,324528,542 607,090
5,140,9515,070,516 5,272,318
$ 20,637,60620,545,136$ 22,085,004$
$ 17,16930,797$ 42,112$
124,338284,160 186,611
32,1359,265 41,815
56,90242,150 73,519
-- 206,916
560,702509,098 623,147
1,894,7772,441,622 2,325,158
567,370745,505 1,751,464
3,253,3934,062,597 5,250,742
1,343,1531,339,390 1,395,306
1,812,5851,598,717 1,838,949
803,889800,843 803,417
852,215821,628 939,421
363,591368,228 385,748
-- -
258,388279,860 255,188
216,596150,814 190,442
328,515142,691 28,250
5,978,9325,502,171 5,836,721
$ 9,232,3259,564,768$ 11,087,463$
$ (12,243,262)(11,412,023)$ (11,561,944)$
837,981431,655 564,403
$ (11,405,281)(10,980,368)$ (10,997,541)$
$ 9,827,8139,353,966$ 9,952,156$
2,147,5171,636,609 2,239,668
306,215309,609 312,519
121,229170,960 108,956
-9,796 42,343
145,000145,000 145,000
12,547,77411,625,940 12,800,642
9,13812,841 8,319
-1,367 26,879
-(12,048) -
(145,000)(145,000) (145,000)
(135,862)(142,840) (109,802)
$ 12,411,91211,483,100$ 12,690,840$
304,512213,917 1,238,698
702,119288,815 454,601
$ 1,006,631502,732$ 1,693,299$
121
CITY OF HOPKINS
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2002200320042005
General Fund
Reserved$ 580,462$ 557,628$ 97,740$ 943,474
Unreserved 2,795,941 3,230,283 3,973,556 3,367,721
Nonspendable - - - -
Assigned - - - -
Unassigned - - - -
Total general fund$ 3,376,403$ 3,787,911$ 4,071,296$ 4,311,195
s
All other Governmental Fund
Reserved reported in:
Special Revenue Funds4,989,862$ 5,813,114$ 4,326,291$ 6,010,974$
Capital Projects Funds10,107,076 6,500,016 1,526,732 -
Debt Service Funds2,728,091 3,045,346 3,789,322 6,303,112
Unreserved reported in:
Special Revenue Funds3,096,445 1,705,798 2,901,921 969,812
Capital Projects Funds4,106,501 3,993,924 3,993,720 3,945,500
Nonspendable- - - -
Restricted- - - -
Committed- - - -
Assigned- - - -
Unassigned- - - -
Total all other governmental funds25,027,975$ 21,058,198$ 16,537,986$ 17,229,398$
Total all funds28,404,378$ 24,846,109$ 20,609,282$ 21,540,593$
Note: The City began to use new categories of fund balance when it implemented GASB 54 in 2011.
Prior years were not retroactively reclassified.
122
Schedule 3
Fiscal Year
200620072008200920102011
$ 974,517$ 1,157,142$ 111,806$ 196,790$ 182,211$ -
3,345,606 3,304,729 3,884,309 3,930,996 4,071,049 -
- - - - 174,487-
- - - - 591,676-
- - - - 4,266,048-
$ 4,320,123$ 4,461,871$ 3,996,115$ 4,127,786$ 4,253,260$ 5,032,211
$ 5,625,355$ 3,137,313$ 3,189,829$ 3,528,529$ 2,844,901$ -
- - - - - -
2,852,655 12,982,623 3,250,202 6,021,748 4,850,159 -
1,539,404 1,070,230 955,772 (24,957) 590,281 -
1,718,021 1,808,708 1,381,657 1,264,405 3,572,002 -
- - - - 2,674,342-
- - - - 5,823,862-
- - - - 926,349-
- 2,502,336-
- --
- - - - (1,916,865)-
$11,735,435$18,998,874$ 8,777,460$10,789,725$11,857,343$10,010,024
$16,055,558$23,460,745$12,773,575$14,917,511$16,110,603$15,042,235
123
CITY OF HOPKINS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEAR
S
(modified accrual basis of accounting)
Fiscal Year
2002200320042005
Revenues
Property Taxes$6,215,194$6,877,331$7,283,712$7,788,557
Tax Increments2,003,7432,214,8352,177,518970,846
Special Assessments1,363,1671,460,4641,441,8851,368,262
Intergovernmental2,830,8062,850,3371,758,5731,177,016
Licenses and Permits 468,312 777,997 686,933643,811
Charges for Services 898,896 797,233 792,2801,017,343
Fines and Forfeits 148,112 181,893 197,337207,454
Investment Earnings 584,238 327,959 339,883358,336
Miscellaneous 460,422 224,320 700,012558,575
Total revenues14,972,89015,712,36915,378,13314,090,200
Expenditures
Current:
General Government1,061,9601,259,1211,094,5261,332,796
Public Safety3,690,3684,433,4994,695,8034,848,336
Health and Welfare 185,893- 180,314176,552
Highways and Streets1,652,1431,674,8361,681,4841,812,403
Urban Redevelopment and Housing1,157,9601,595,927 937,849911,005
Culture and Recreation1,027,2431,044,9481,074,5871,093,699
Other 93,508 - - -
Capital outlay4,480,0589,030,6296,651,1092,489,137
Debt Service
Principal3,991,5021,407,6471,644,9082,306,152
Interest and fiscal charges1,345,8111,688,1381,780,6201,535,171
Bond Issuance Costs - - 41,906-
Total expenditures18,500,55322,320,63819,741,20016,547,157
Excess (deficiency) of revenues
over expenditures(3,527,663)(6,608,269)(4,363,067)(2,456,957)
Other Financing Sources (Uses)
Sale of Property - - - -
Proceeds from Issuance of Debt14,170,0003,050,000 3,385,000-
Discount on Debt - - (4,240)-
Premium on Debt - - - -
Refunded bond payment - - - -
Transfer In2,355,1932,042,7712,594,7871,625,994
Transfer Out(2,328,241)(2,602,175)(2,468,547)(1,618,486)
Total other financing sources (uses)14,196,9522,490,596 126,2403,388,268
Net change in fund balances$10,669,289$(4,117,673)$(4,236,827)$931,311
Debt service as a percentage of
noncapital expenditures38.1%23.3%26.2%27.3%
Note: Capital outlay has been adjusted for items not shown as capital expenditures on the entity wide
statements and reclassified to their respective expenditure category.
124
Schedule 4
Fiscal Year
200620072008200920102011
$8,134,915$8,473,516$ 9,377,1278,844,113$ 9,795,318$ 10,038,514$
990,7761,050,6011,186,3951,636,5352,147,5172,239,668
1,288,4371,172,9771,120,7411,071,4061,128,4671,446,922
1,036,6452,115,6701,053,4051,220,7661,215,1631,931,333
540,120 880,443744,502820,031623,492 691,962
631,655 729,365872,388875,470800,115 908,106
203,830 215,051188,003148,172138,894 174,303
705,591 638,796318,074135,569106,128 94,409
692,649 851,203709,9151,024,879589,604 701,683
14,224,61816,127,622 16,309,95515,037,536 16,544,698 18,226,900
1,366,2461,597,5031,590,3471,552,7121,576,6761,598,885
4,994,2735,290,8025,779,0475,888,4815,881,6335,895,640
176,502 184,541232,163273,760177,732 168,202
1,824,6582,091,0432,224,3382,139,3512,082,8532,337,018
944,5771,787,131935,4021,586,0831,881,6102,826,172
997,9871,122,8911,289,3231,278,1081,339,6951,510,024
- - - - - -
3,055,8155,830,5161,228,7551,556,1211,358,7921,972,143
4,926,2841,610,0001,705,0001,805,0004,665,0002,065,000
1,418,3111,131,5141,100,2111,037,372953,232 852,184
81,109- 34,972- 49,233 -
19,704,65320,727,050 17,151,96016,084,586 19,966,456 19,225,268
(5,480,035)(4,599,428)(1,047,050)(842,005)(3,421,758)(998,368)
- - - 341 - -
11,875,000- 2,865,000-4,515,000 -
(72,905)- (24,400)-(45,150) -
7,520- - - - -
- - - - (215,000)-
5,273,59214,940,0551,043,1551,088,8757,808,0681,504,822
(5,278,592)(14,745,055)(898,155)(943,875)(7,663,068)(1,359,822)
12,004,615(5,000)145,0002,985,9414,614,850 (70,000)
$(5,485,035)$7,405,187$(902,050)$ 1,193,0922,143,936$ (1,068,368)$
38.1%18.4%18.9%18.2%30.2%16.9%
125
Schedule 5
CITY OF HOPKINS
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
(in thousands of dollars)
Less:Total Taxable
PayableResidentialApartmentCommercialIndustrialOtherTax-ExemptMarketTotal Direct
YearPropertyPropertyPropertyPropertyPropertyPropertyValueTax Rate
2002609,165$ 192,868$ 168,922$ 140,653$ 160$ 85,442$ 1,026,166$ 54.790
2003690,469 234,684 178,305 148,739 215 85,442 1,166,755 56.100
2004924,590 256,511 264,953 154,778 225 182,899 1,417,933 56.664
20051,000,569 256,942 277,231 163,616 243 182,899 1,515,459 48.944
20061,062,213 256,559 305,233 176,812 288 182,899 1,618,206 48.262
20071,080,591 257,658 329,601 188,941 306 182,899 1,674,198 45.862
20081,061,645 257,275 352,028 198,808 306 182,899 1,687,163 45.570
20091,017,790 266,458 395,842 192,138 1,815 182,899 1,691,144 47.574
2010922,267 251,418 404,674 168,803 1,503 177,975 1,570,690 49.377
2011883,348 251,141 397,506 173,349 1,272 179,699 1,526,917 56.463
Notes:
(1) The direct tax rate is applied to the tax capacity of the property which is calculated by applying a
statutory formula to the estimated market value of the property. The tax capacity is then multiplied by
the direct tax rate to determine the city taxes payable on a specific parcel.
(2) Tax exempt property is revalued on a six-year cycle. All other property is revalued on a three year cycle.
126
Schedule 6
CITY OF HOPKINS
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
yrecaeverappngaes
CitDitRtOliRt
General
Total Direct
Obligation
and
DebtTotalSchoolHennepinMetroTotalOverlapping
ServiceDirectDistrictCountyCouncilOtherOverlappingTax Rate
Basic Rate
Fiscal
Year
50.490 74.210 129.000
2002 5 1.950 2 .84054.790 15.030 3.5305.160
50.610 81.040 137.140
2003 4 9.190 6 .91056.100 20.590 3.8306.010
56.66447.320 78.280 134.944
2004 49.028 7.636 22.200 3.5005.260
48.94444.172 71.895 120.839
2005 44.049 4.895 19.176 3.3045.243
48.26241.016 70.685 118.947
2006 41.300 6.962 21.565 2.9245.180
45.86239.110 66.546 112.408
2007 39.574 6.288 19.019 2.6715.746
45.57038.571 66.335 111.905
2008 39.237 6.333 19.218 2.5625.984
47.57440.413 68.906 116.480
2009 41.346 6.228 20.080 2.5795.834
201049.37742.561 74.942 124.319
4 3.121 6.256 22.944 2.6126.825
56.46345.840 82.785 139.248
2011 49.638 6.825 26.456 2.9497.540
Source:Hennepin County, Minnesota Taxpayer Services Department
Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service
are based on each year's requirements.
127
Schedule 7
CITY OF HOPKINS
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
20112002
PercentagePercentage
of Total of Total
CitCit
yy
TaxTaxTaxTax
CapacitCapacitCapacitCapacit
yyyy
TaxpayeralueRankaluealueRankalue
VVVV
Super Valu969,890$ 14.97%1,658,227$ 112.37 %
RE Capital Partners871,830 24.47-
- -
Excelsior Crossings Invesments LLC819,45034.20 --
-
Hines Globel Reit 9320 Excel357,47041.83 --
-
Southwest Real Estate, Inc.225,39651.16384,288
2 2.87
Ramsgate Apartments LLC210,61361.08284,903
3 2.13
Hopkins Real Estate, LLC199,79071.02 --
-
Duke Realty Ltd Partnership199,49081.02260,810
4 1.95
Hines Reit Mpls Ind LLC199,25091.02 --
-
City Center Ventures, LLC184,450100.95 --
-
Greenfield Apartments, LLP --
- 214,8007 1.60
Glaser Financial Group, Inc --
- 241,3205 1.80
Alliant Tech --
- 220,4866 1.64
Ryan Hopkins, LLC --
- 185,8168 1.39
Fleming Companies --
- 182,1009 1.36
Auburn Limited Partnership --
- 174,64810 1.30
Total$4,237,62921.72%3,807,398$ %28.40
Total City 2011/2002 tax capacity19,512,121$$13,404,285
Source:
Hennepin County, Minnesota Assessor's Office
No
tes: Tax capacity is a percentage of total market value. For taxes payable in 2011 these class rates are 1.25% for
apartments and 1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties.
128
2.7%(2) 3.6%(3) 3.7%(4) 3.9%(5)
Schedule 8Levy Taxes (2)Outstanding
PercentageCollections inPercentageOutstandingPercentage
of Delinquentof Lev
y
$ 0.9% 0.2% 0.6% 0.4% 0.4% 0.5%
$ 99.1%58,493 99.8%11,667 99.4%49,393 99.6%33,695 99.6%34,197 99.5%43,330 97.3%247,482 96.4%344,632 96.3%368,627 96.1%396,078
Total Collections to Date
(2) In December 2008 the State of MN unalloted $126,391 in Market Value Homestead Credit that is included in the total levy.
(3) For the year 2009 State of MN unalloted $246,865 in Market Value Homestead Credit that is included in the total levy.(4) For the year 2010 State of MN unalloted $241,193 in Market
Value Homestead Credit that is included in the total levy.(5) For the year 2011 State of MN unalloted $257,696 in Market Value Homestead Credit that is included in the total levy.
$ 6,532,647 7,156,585 7,654,743 8,086,383 8,403,881 8,762,428 8,976,898 9,258,482 9,632,058 9,867,336
moun
t
A
PROPERTY TAX LEVIES AND COLLECTIONS.
Had the City received those funds, outstanding delinquent taxes would be reduced to $121,086 and Had the City received those funds, outstanding delinquent taxes would be
reduced to $127,434 and Had the City received those funds, outstanding delinquent taxes would be reduced to $138,382 and
Had the City received those funds, outstanding delinquent taxes would be reduced to $97,767 and
$ 98.2%59,657 98.7%81,210 98.4%72,387 98.4%95,602 98.2%121,084 97.9%142,001 95.7%145,161 94.8%157,024 95.3%98,387 95.8%39,247
FiscalOperatingDebt Total Taxof Subsequen
t
Years
LAST TEN FISCAL YEARS
CITY OF HOPKINS
(1) Beginning with payable year 2002, Market Value Homestead Credit is included in
Collected within the
Lev
Fiscal Year of Lev
y
y
$ 6,472,990
7,075,375 7,582,356 7,990,781 8,282,797 8,620,427 8,831,737 9,101,458 9,533,671 9,828,089
moun
t
A
the percentage of levy outstanding would be 1.3%. the percentage of levy outstanding would be 1.1%. the percentage of levy outstanding would be 1.3%.
the percentage of levy outstanding would be 1.3%.
$ 6,591,140 7,704,136 8,438,078 8,805,758 9,224,380 9,603,114 10,000,685 10,263,414
7,168,252 8,120,078
Levy (1
)
Taxes Levied for the Fiscal Yea
r
$ 342,000 883,000 1,038,000 812,000 1,217,000 1,207,000 1,282,000 1,257,000 1,267,000 1,241,000
Tax Lev
y
the operating levy.
20026,249,14020036,285,25220046,666,13620057,308,07820067,221,07820077,598,75820087,942,38020098,346,11420108,733,68520119,022,414
Tax Lev
y
Notes:
Yea
r
129
Schedule 9
$ 288.0%1,931
YearBondsBondsBondsBondsBondsGovernmentIncomeCapita
FiscalObligationLease RevenueIncrementAssessmentsRevenuePrimaryof PersonalPer
603811520
292512466
089625764
,,,,,,,,,
211121111
GeneralHRA Tax SpecialTotalPercentage
%%%%%%%%%
000000000
.........
715438888
965097777
222211111
Details regarding the District's outstanding debt can be found in note 9 of the notes to the financial statements.
$ 33,301,194 35,573,056 33,352,436 33,991,284 28,615,000 38,405,000 26,655,000 30,505,000 29,235,000
25,680,000
Business-Type
5,710,000 5,270,000 4,830,000 4,380,000 3,905,000 3,410,000 6,200,000 5,080,000 3,805,000
$ 4,800,000
RATIOS OF OUTSTANDING DEBT BY TYPE
Governmental ActivitiesActivities
schedule on schedule 14 for personal income
LAST TEN FISCAL YEARS
CITY OF HOPKINS
$ 2,490,000 2,275,000 1,980,000 1,675,000 1,370,000 3,010,000 2,690,000 2,330,000 4,885,000 4,385,000
$ 13,946,194 12,633,056 11,307,436 13,366,284 9,420,000 8,805,000 8,135,000 10,290,000 8,330,000 7,300,000
Demographic and Economic Statistics
$ 10,760,000 13,810,000 13,810,000 13,290,000 12,770,000 12,235,000 2,565,000 2,440,000 2,315,000 2,185,000
20021,305,00020031,145,0002004985,0002005830,0002006675,000200710,450,00020089,855,00020099,245,00020108,625,00020118,005,000
and population data.
See the
Notes:
130
Schedule 10
CITY OF HOPKINS
RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Bonded Debt Outstanding
Percentage of
Less: Amt
GeneralAvailable in TotalActual Taxable
alue of Pe
FiscalObligationDebt ServicePrimaryVr
YearBondsFundsGovernmentPropertyCapita
200212,065,000$ 301,342$ 11,763,658$ 0.142%681.95
200314,955,000 498,383 14,456,617
1.146% 823.32
200414,795,000 979,296 13,815,704
1.239% 783.07
200514,120,000 716,119 13,403,881
0.974% 758.35
200613,445,000 950,596 12,494,404
0.884% 723.77
200713,135,000 1,080,940 12,054,060
0.772% 694.08
200812,420,000 1,000,521 11,419,479
0.720% 651.57
200911,685,000 880,866 10,804,134
0.677% 618.05
201010,940,000 795,945 10,144,055
0.688% 576.66
201110,190,000 641,016 9,548,984
0.625% 542.83
Notes:
Details regarding the city's outstanding debt can be found in note 9 of the notes to the
financial statements.
See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value
of property data
See the Demographic and Economic Statistics schedule 14 for population data
131
Schedule 11
CITY OF HOPKINS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2011
Estimated
EstimatedShare of
Net DebtPercentageOverlapping
pplicable
(a)
A
OutstandingDebt
Debt repaid with property taxes:
School Districts:
Hopkins ISD 270181,415,841$ 16.84%30,550,428$
St. Louis Park ISD 28344,284,075 0.37%163,851
Other Debt:
Hennepin County723,889,101 1.19%8,614,280
Hennepin Suburban Park District64,252,898 1.60%1,028,046
Hennepin Regional RR Authority40,128,161 1.19%477,525
Metropolitan Council142,956,525 0.55%786,261
Subtotal - overlapping debt 10,906,112
City of Hopkins Direct Debt (b,c)8,819,501 100%8,819,501
Total Direct and Overlapping Debt:19,725,613$
Source:
Hennepin County, Minnesota Taxpayer Service
s
Note:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the City. This schedule shows the portion of the outstanding debt of those overlapping governments
that is borne by the residents and businesses of the City. This process recognizes that, when considering
the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.
(a) The percentage of overlapping debt applicable is estimated using the taxable market values.
Applicable percentages were estimated by determining the portion of the county's and school district's
taxable market value that is within the City's boundaries.
(b) City of Hopkins direct debt includes long-term debt instruments of the City which are bonds and capital
leases of the government.
(c) Net Debt Outstanding excludes revenue and special assessment debt and takes into consideration
any sinking funds obligated for the repayment of the bonds.
132
Schedule 12
Legal Debt Margin Calculation for Fiscal Year 2011
43,8065.83%4.63%3.16%2.24%1.57%29.38%18.30%17.29%21.53%21.80%
1,460,198$ 34,257
)
2011
19
6097
444
095
816525
$
,,,,,
(
9
3094
$
413
Less: Amount set aside for repayment of
$
$
$ 36,977
2010
14
24
Total net debt applicable to limit
11
,,
70
41
)$
general obligation debt
e
u
50,73441,962
l
s
a
Debt applicable to limit:
2009
vd
2
tn
7
eo
7
,
k
B
r
8
Legal debt margin$
a
n
o
m
i
t
f
a
Market valueo
50,61541,352
g
i
l
%
2008
b
3
3
(
O
6
tl
2
$
i
,
a
r
9
m
i$
e
l
n
t
e
b
e
G
D
2007
284
Fiscal Year
568
274
,,,
39 3
$
3 2
LEGAL DEBT MARGIN INFORMATION
$
2006
LAST TEN FISCAL YEARS
5
38
90
0
(dollars in thousands)
64 1
,,
CITY OF HOPKINS
1 1
33
$
$
2005
697
348
6
0 3
,,
98
22
$ $
2004
0
11
19
0
68 7
,,
5 4
2
2
$
$
20,343
2003
18
38
9
3
,
1
2
$ $
18,292
19,424
2002
2
3
1
,
1
$
$
Total net debt applicable to the limit
as a percentage of debt limit
t
i
m
i
l
o
t
e
l
b
a
Legal debt margin
c
i
l
p
p
a
t
b
Debt limit
e
d
t
e
n
l
a
t
o
T
133
Schedule 13
RevenuePrincipalInterestCoverageRevenuePrincipalInterestCoverageRevenuePrincipalInterestCoverage
$ 0.36 1.90 1.57 1.50 1.72 1.57
6078
5878
....
1103
Storm Sewer Revenue Bonds
113,178141,647130,213119,445111,605
141,379
6743
4392
8478
Debt Service
,,,,
8936
9752
1,840,000250,000330,000325,000330,000350,000365,000365,000995,000180,000
$
2717189397
5639672481
8384270884
,,,,,,
,,,,
$
8012545033
0948722000
767677788
8
Details regarding the City's outstanding debt can be found in Note 9 of the notes to the financial statements.
--------
35
88
..
99
41
PLEDGED-REVENUE COVERAGE
Sewer Revenue Bonds
LAST TEN FISCAL YEARS
--------
30
Debt Service
75
36
CITY OF HOPKINS,,
62
3
3
$
-
60,000
--------
$
-
-------
59
84
59
,,
28
13
88
,,
11
$
$ 4.55
223425276
151589925
.........
555555615
$ 96,66856,211
Water Revenue Bonds
92239905
71339942
Debt Service
09576641
,,,,,,,,
42959931
84776654
$ 100,0001,000,000
00000000
00000000
00000000
,,,,,,,,
50505000
01122341
11111112
2002894,5432003967,3892004844,0172005998,12920061,083,67520071,133,24820081,188,61020091,339,39020111,395,306
20101,342,073
Notes:
Fiscal
Yea
r
134
Schedule 14
CITY OF HOPKINS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
PersonalPer
Income (2)Capita
FiscalPersonalSchoolUnemployment
(thousands
YearPopulation (1)Income (2)Enrollment (3)Rate (4)
of dollars)
200217,250170,998$ 34,071$ 10,948 4.4
200317,559178,147 35,252 11,447 4.6
200417,643188,330 37,017 11,416 4.3
200517,675193,990 37,892 10,896 3.7
200617,263205,857 39,867 10,828 3.9
200717,367216,840 41,642 10,770 4.5
200817,526228,069 43,446 10,760 6.4
200917,481217,609 41,204 10,785 6.7
201017,591227,288 42,798 10,693 6.5
201117,591238,768 44,672 10,559 5.5
Sources:
(1)Metropolitan Council, except for 2010 and 2011 which is per the U.S. Census.
(2)U.S. Department of Commerce Bureau of Economic Analysis data for Minnesota
(3)Minnesota Department of Education and is for public and non-public schools in
Hopkins School District #270
(4)Minnesota Department of Employment and Economic Development, based on
December rates
135
Schedule 15
CITY OF HOPKINS
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
20112002
PercentagePercentage
of Total of Total
TaxpayerEmployeesRankEmploymentEmployeesRankEmployment
Cargil2,350120.483%---%
ISD 270 Hopkins (1)1,400212.2031,430212.599
SuperValu1,265311.0261,477113.013
Augustana Chapel View Care Center22541.96116751.471
Oak Ridge Country Club20451.77819041.674
Thermotech19061.65632432.855
Rudy Luther's Hopkins Honda16071.395125101.101
City of Hopkins14481.25514571.278
Golden Living Center13491.16813581.189
SunGard Financial Systems105100.915--
Walser Chrysler Jeep-- 15061.322
EDCO Products-- 13291.163
Total6,177
53.839% 4,275 37.665%
Source:
Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State
Business Directory
Notes:
(1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
136
Schedule 16
CITY OF HOPKINS
FULL-TIME EQUIVALENT CITY EMPLOYEES BY TYPE,
LAST TEN FISCAL YEARS
Full-time-Equivalent Employees as of December 31,
2002200320042005200620072008200920102011
General Government
Administrative Services5.11 5.11 3.53 5.55 5.55 5.15 5.05 4.95 4.80 4.80
Finance4.00 4.00 4.30 4.60 4.60 4.60 4.60 4.60 4.60 4.60
Municipal Building1.50 1.50 0.85 1.40 1.45 1.45 1.45 1.45 1.45 1.45
Community Services10.30 10.30 9.74 8.90 8.90 9.48 9.85 9.95 9.95 9.95
Public Safety
Police40.25 40.25 39.00 37.50 38.50 39.40 39.45 40.00 39.00 40.00
Fire0.90 0.90 0.90 1.20 1.20 1.20 1.20 1.20 1.20 1.20
Public Works23.05 23.05 20.00 19.50 18.60 18.59 18.60 18.70 17.77 17.25
Recreation
ctivity Cente 3.663.66 2.55 4.10 4.10 4.00 3.30 3.30 3.30 3.30
Ar
Skate Park- - - - 0.05 0.05 0.05 0.05 0.05 0.05
Planning & Zoning1.28 1.28 1.20 1.20 1.20 1.20 1.15 1.15 1.35 1.35
Total General Government90.05 90.05 82.07 83.95 84.15 85.12 84.70 85.35 83.47 83.95
Special Revenue Funds
Economic Development2.37 2.37 2.40 1.60 1.60 1.60 1.78 1.75 1.75 1.60
Paratransit0.15 0.15 0.20 0.20 0.20 0.20 0.20 0.20 - -
Housing Rehabilitation1.05 1.05 0.65 0.70 0.70 0.70 0.85 0.85 0.85 0.85
Parking1.80 1.80 1.20 2.00 2.00 1.00 1.00 1.00 1.00 1.00
Section 81.20 1.20 1.40 1.40 1.40 1.35 - - - -
0.58 0.07 0.05 0.05 0.10 0.10 0.10 0.40 0.25
Communication0.58
Depot Coffee House0.73 0.73 1.08 1.93 - 0.05 1.00 1.00 1.00 1.50
rt Cente 3.92- 3.72 4.22 4.05 4.05 4.05 4.05 4.05 4.55
Ar
Total Special Revenue Funds7.88 11.80 10.72 12.10 10.00 9.05 8.98 8.95 9.05 9.75
Enterprise Funds
Water4.18 4.18 3.56 3.24 3.25 3.25 3.76 3.67 3.11 3.11
3.353.35 3.23 3.55 3.56 3.56 4.07 4.08 3.44 3.44
Sanitary Sewe
r
Refuse3.68 3.68 3.89 4.15 4.08 4.08 4.09 4.12 3.40 3.58
Storm Sewer0.62 0.62 0.47 0.47 0.46 0.46 0.46 0.46 0.42 0.42
Pavilion/Ice Arena2.37 2.37 2.44 2.44 2.90 2.72 3.80 3.80 3.05 2.45
rt Cente -3.92 - - - - - - - -
Ar
Skate Park0.38 0.38 - - - - - - - -
1.901.90 1.90 1.90 2.40 2.45 2.05 2.05 2.05 2.20
Housing and Redevelopmen
t
Total General Government20.40 16.48 15.49 15.75 16.65 16.52 18.23 18.18 15.47 15.20
Total 118.33118.33 108.28111.80110.80110.69111.91112.48 107.99 108.90
Source: City Finance Office
137
CITY OF HOPKINS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Years
Fiscal
Function/Program20022003200420052006
General Government
Elections21212
Registered voters9,1388,83011,5189,70810,621
Number of votes cast6,6299098,8802,6016,279
Voter participation (registered)72.5%10.3%77.1%26.8%59.1%
Public Safety
Police
Total Calls for Service15,16117,11419,64819,04918,567
Sworn Officers2424252626
911 Calls for Service6,2077,1925,5134,9084,547
Traffic Stops2,0052,8133,0442,9163,321
Parking Citations1,9392,7051,5061,122841
Fire
Fires4352487659
False Alarm132113103107101
Fire Runs330329326337297
Medical Runs21314811312168
Average Response Time (minutes)5.15.15.35.35.3
Inspections
Building Permits487498542365494
Value of Building Permits$34,562,884$40,363,863$34,316,423$32,333,498$14,272,117
Public Works
Miles of seal coating44444
Miles of crack sealing3.253.253.253.253.25
Sidewalk repairs in square feet2,8752,8752,8752,8752,875
Alley repairs in square yards173173157143130
Culture and Recreation
Art Center
Bookings 2,9283,5515,5985,5985,570
Reserved Hours15,36922,33536,95036,95035,710
Customer Visits for Events/Activities156,400174,100182,800182,800202,000
Water
Gallons of water pumped (in millions)774.6780.2732.4743.6785.5
Number of well house inspections2,4882,4882,4882,4882,488
Number of hydrants flushed100+100+100+100+100+
Water Rate1.20$ 1.20$ 1.40$ 1.40$ 1.40$
Sanitary Sewer
Sanitary sewage flow (in millions of gallons)678.4634.3653.2647.3638.2
Miles of sewer lines jettedn/an/a14.715.014.6
Number of manholes checked/cleaned222262292222262
Lift Station Maintenance checks4,3744,3744,3744,3744,374
Sewer Rate$ 2.25$ 2.25$ 2.25$ 2.25$ 2.50
Refuse
Number of refuse accounts2,6632,6952,6702,6732,766
Tons of refuse collected3,2802,6242,6712,6432,549
Tons of recycled material (residential)1,0821,3051,2481,1851,118
Refuse rate$11.00-14.45$11.00-14.45$11.00-14.45$12.50-15.90$12.50-15.90
Recycling rate$ 2.75$ 2.75$ 2.75$ 2.75$ 2.75
Pavilion/Ice Arena
Ice time rental hours1,4791,4871,5211,4331,443
Turf use hours403450464362407
Mezzanine rental use00162351339
Source:Various City Departments
Notes:
(1) Information not available is labeled N/A..
(2) In 2009 the Sewer Department began checking manholes on a monthly basis.
138
Schedule 17
r
Yea
20072008200920102011
12121
8,33011,2339,5489,3939,691
1,1468,8358615,761961
13.8%78.7%9.0%61.3%9.9%
19,13719,44019,23819,14121,257
2626262626
4,5884,6584,5194,9379,382
4,2873,0422,6982,5975,231
747647925914865
7045385840
701011079895
350291220370331
5967566677
4.34.34.24.04.0
377897381422631
$50,544,210$45,074,024$54,688,290$10,968,955$19,211,258
3.22.60.550.950.85
2.884.973.711.997.26
4,2794,9306,2285,2525,831
253238142170200
6,0545,5935,3924,9134,307
39,06034,76033,78030,41426,406
203,000212,000203,100205,319219,975
794.7774.0813.0794.0744.0
2,4882,4882,4842,5012,446
100+100+130144151
$ 1.40$ 1.65$ 1.86$ 1.90$ 1.90
641.3626.2580.2567.8606.5
17.314.614.215.414.6
4413441,2901,3011,421(2)
4,3743,8554,3124,3104,321
$ 2.50$ 2.70$ 3.10$ 3.40$ 3.60
2,6702,6782,6892,6952,687
2,4482,3932,3352,2982,265
1,1381,0801,1941,1481,222
$12.50-15.90$13.20 - 17.25$15.85 - 21.85$15.85 - 21.85$16.85 - 23.15
$ 2.75$ 3.25$ 3.50$ 3.75$ 3.75
1,4581,4691,4561,4551,407
442479624624758
3454004957761,150
139
Schedule 18
CITY OF HOPKINS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRA
M
Last Ten Years
Fiscal Year
Function/Program2002200320042005200620072008200920102011
Public Safety
Police
Stations1111111111
Patrol Units10101010111111111111
Fire
Stations1111111111
Public Works
Highways (miles)3.573.573.573.573.573.573.573.573.573.57
County Highways5.695.325.325.325.325.325.325.325.325.32
City Streets (miles)47.1347.5047.5047.5047.5047.5047.5047.5047.5047.50
Alleys (miles)9.529.529.529.529.529.529.529.529.529.52
Streetlights350360360398398398398398398398
Traffic Signals44444444444444444444
Refuse collection trucks3333333333
Culture & Recreation
Parks
Parks16161616161616161616
Park Trails3344444444
Park Acres102102104104104104104104104104
Park Shelters10101010101111111111
Playgrounds11111111111111111111
Skateboard Park/Inline Skating1111111111
Skating Rinks7777777777
Hockey Rinks6666555555
Basketball Courts6666666666
Softball Fields4444444444
Swimming Beach1111111111
Tennis Courts121288888888
Volleyball Courts2222222222
Watermains
Distribution System (miles)52.6052.6052.6052.6052.6052.6052.6052.6052.6052.60
Fire Hydrants560560560560560560560560560560
Storage Capacity (gallons in thous)3,2003,2003,2003,2003,2003,2003,2003,2003,2003,200
Water Connections3,1443,1573,1633,1633,1683,1683,1683,1683,1683,168
Sanitary Sewer
Collection System (miles)45.4645.4645.4645.4645.4645.4645.4645.4645.4645.46
Sewer Connections3,0643,0773,0813,0813,0863,0863,0863,0863,0863,086
Storm Sewer
Pipe (miles)21.4021.4021.4021.4021.4021.4021.4021.4021.4021.40
Parking
Parking Lots7777777777
Parking Ramp1111111111
Source:Various City Departments
140