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2012 City of Hopkins, MN Annual Report City of Hopkins, Minnesota Comprehensive Annual Financial Report for year ended December 31, 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF HOPKINS, MN For The Year Ended December 31, 2012 Prepared by the Department of Finance THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2012 TABLE OF CONTENTS IINTRODUCTORY SECTION Page Letter of Transmittal from the City Manager and Finance Director 3 Certificate of Achievement for Excellence in Financial Reporting 9 Administrative Organization Chart 10 City Officials 11 IIFINANCIAL SECTION Independent Auditors' Report 13 Management's Discussion and Analysis (Unaudited) 15 A. Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 28 Statement of Activities 29 Fund Financial Statements: Balance Sheet - Governmental Funds 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 32 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 37 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Economic Development Special Revenue Fund 38 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Tax Increment 2-11 Special Revenue Fund 39 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Arts Center Special Revenue Fund 40 Statement of Net Position - Proprietary Funds 41 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 43 Statement of Cash Flows - Proprietary Funds 44 Notes to Financial Statements 47 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2012 Page B. Required Supplementary Information Schedule of Funding Progress - Other Postemployment Benefit Plan 73 C. Combining and Individual Nonmajor Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 84 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds: State Chemical Assessment 92 Real Estate Purchases & Sales 93 Parking 94 Communications 95 Depot Coffee House 96 Tax Increment District Entertainment Center 97 Tax Increment District R.L. Johnson 98 Tax Increment District Sonoma Project 99 Tax Increment District Oaks of Mainstreet 100 5th Avenue Flats 101 Tax Increment District Marketplace & Main 102 Combining Statement of Net Position - Nonmajor Enterprise Funds 104 Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds 105 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 106 Combining Statement of Net Position - Internal Service Funds 108 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 109 Combining Statement of Cash Flows - Internal Service Funds 110 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2012 IIISTATISTICAL SECTION Page A. Financial Trends Net Assets by Component 114 Changes in Net Position 116 Fund Balances, Governmental Funds 118 Changes in Fund Balances, Governmental Funds 20 B. Revenue Capacity Assessed and Actual Value of Taxable Property 122 Direct and Overlapping Property Tax Rates 123 Principal Property Taxpayers 124 Property Tax Levies and Collections 125 C. Debt Capacity Ratios of Outstanding Debt by Type 126 Ratios of Net General Bonded Debt Outstanding 127 Direct and Overlapping Governmental Activities Debt 128 Legal Debt Margin Information 129 Pledged-Revenue Coverage 130 D. Demographic and Economic Information Demographic and Economic Statistics 131 Principal Employers 132 E. Operating Information Full-time Equivalent City Employees by Type 133 Operating Indicators by Function/Program 134 Capital Asset Statistics by Function/Program 136 1 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 SECTION I INTRODUCTORY SECTION 2 3 June 27, 2013 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, 2012 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, 2012, 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, 2012, 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. 4 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 37-40 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 92-102. 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- 5 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 2012 was $6.8 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 2012 include the following: Activity Valuation Commercial Additions/Alterations: Marketplace & Main apartments $8,350,000 Mayon Plastics rite redevelopment $3,000,000 BP Gas Station site redevelopment $4,000,000 Efforts are being made for continued development and growth for 2013 and beyond. It is anticipated that approximately $130,000,000 of construction will also take place in the City of Hopkins during the next several years. Some anticipated projects for 2013-2016 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 Gallery Flats $26,000,000 6 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 2013, projects to be constructed include the redevelopment of the Park Nicollet Clinic site into a retail/housing development of approximately163 housing units and Phase II of Market Place & Main project with the addition of townhomes. 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 City of Hopkins has adopted a comprehensive set of financial policies. During the current year, the City adopted two new policies, a Debt Management Policy and a Post-Issuance Debt Compliance Policy. The Debt Policy sets forth the framework for planning and review of debt proposals along with the structure under which bond proceeds will be used. The Post-Issuance Debt Compliance Policy sets forth the steps the City will take to help ensure all obligations will be in compliance with all applicable federal regulations. In addition the City of Hopkins’ Fund Balance policy requires that the General Fund’s Spendable, Unassigned portion of fund balance be equivalent to a minimum of five months expenditures or 42% of the prior fiscal year General Fund operating expenses. At December 31, 2012 the General Fund spendable, unassigned fund balance is at 42.7% or $4,488,876 which represents slightly more than five months expenditures of the 2013 budget. Due to sound fiscal policy and close monitoring of budgets we remain at the targeted General Fund balance goal. 7 Major Initiatives For 2012, 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. In 2012, we accomplished our annual street repair and improvements, at a cost of approximately $1,903,000. This included the Central Hopkins reclamation project, replacing infrastructure, th roadway surface, curb and gutters and alley reconstruction on Minnetonka Mills Road between 11 thnd and 7 Avenues along with other streets in that neighborhood in addition to the 2 Avenue berm rehab project. The sewer department completed the Excelsior Boulevard sanitary sewer lining project at a cost of $191,000 and the water, sewer and storm sewer departments also completed in conjunction with the street improvements, infrastructure reconstruction projects totaling $580,000. Other miscellaneous improvement projects in 2012 included an HVAC upgrade at the Activity Center at a cost of $246,100, Maetzold Field improvements for little league fields - $224,200, Valley Park playground equipment - $34,630, and flooring upgrades at the Arts Center - $15,000 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, 2011. 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 8 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 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 9 10 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 11 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPOR T CITY OFFICIALS December 31, 2012 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 12 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 SECTION II FINANCIAL SECTION 13 INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Hopkins, Minnesota Report on the Financial Statements 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 (the City), as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and major special revenue funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principle As described in Note 16, the City adopted the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 62 – Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 989 FASB and AICPA Pronouncements, GASB Statement No. 63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and GASB Statement No. 65 – Items Previously Reported as Assets and Liabilities for the year ended December 31, 2012. The opinion is not modified with the implementation of these GASB Statements. An independent member of Nexia International 14 Honorable Mayor and Members of the City Council City of Hopkins Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules and schedule of funding progress, as listed in 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and individual fund statements and Information for a Comprehensive Annual Financial Report (CAFR) are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and individual fund statements and Information for a Comprehensive Annual Financial Report (CAFR) are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and individual fund statements and Information for a Comprehensive Annual Financial Report (CAFR) are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Statistical data and Introductory sections have 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 them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2013, on our consideration of the City'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 result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Minneapolis, Minnesota June 27, 2013 15 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, 2012. 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 $67.1 million. Of this amount, (unrestricted net assets), approximately $10.1 million may be used to meet the City’s ongoing obligations to citizens and creditors. The City’s total net assets increased by approximately $3.0 million. As of the close of the current fiscal year, the City of Hopkins governmental funds reported combined ending fund balances of approximately $18.6 million, a increase of approximately $3.6 million in comparison with the prior year. The increase was primarily due to proceeds from the 2012 bond sale. Approximately $7.7million of fund balance is available for spending at the City’s discretion (assigned or unassigned fund balance). As of December 31, 2012, unassigned fund balance for the General Fund was approximately $4.5 million, or 43% of total general fund expenditures. The City of Hopkins total debt increased by approximately $2.3 million during the current fiscal year due to the 2012 bond sale for capital improvements. 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 position presents information on all of the City of Hopkins assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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). 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, 16 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 28-29 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-seven 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, 2009B Housing Improvement Bonds of 1999A Refunding Bonds, 2009B Housing Improvement Bonds of 1999B Refunding Bonds, and Permanent Improvement Revolving fund all of which are considered to be major funds. Data from the other thirty 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. 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 Fee 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 26-40 of this report. 17 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 41-45 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 47-71 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information can be found on page 73 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 76-102 of this report. Government-Wide Financial Analysis As noted earlier, net position 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 $67,098,248 at the close of the most recent fiscal year. Approximately three quarters (72%) 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. 18 City of Hopkins Net Position December 31 Governmental Activities Business-Type Activities Total 2012 2011 2012 2011 2012 2011 Assets Current and other assets $ 27,970,866 $ 23,924,306 $ 2,937,340 $ 1,260,095 $ 30,908,206 $ 25,184,401 Capital assets 47,524,794 46,439,544 21,060,724 20,918,467 68,585,518 67,358,011 Total assets 75,495,660 70,363,850 23,998,064 22,178,562 99,493,724 92,542,412 Liabilities Other liabilities 2,079,463 1,147,322 300,911 363,285 2,380,374 1,510,607 Long-term liabilities outstanding 25,372,537 22,951,033 5,029,422 4,008,319 30,401,959 26,959,352 Total liabilities 27,452,000 24,098,355 5,330,333 4,371,604 32,782,333 28,469,959 Net Position Invested in capital assets, net of related debt 31,891,229 31,666,432 16,405,495 17,075,284 48,296,724 48,741,716 Restricted 8,684,347 8,250,360 - - 8,684,347 8,250,360 Unrestricted 7,854,941 6,348,703 2,262,236 731,674 10,117,177 7,080,377 Total net position $ 48,430,517 $ 46,265,495 $ 18,667,731 $ 17,806,958 $ 67,098,248 $ 64,072,453 A portion of the City of Hopkins net position represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($10,117,177) may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its governmental and business-type activities. The City’s net position increased by $3,025,795 during the current fiscal year. (remainder of this page is left blank intentionally) 19 Governmental and business-type activities. Governmental activities increased the City of Hopkins net position by $2,165,022 and business-type activities increased net position by $860,773. Key elements of the increases are as follows: City of Hopkins Changes in Net Position For the Year Ended December 31 Governmental Activities Business-Type Activities Total 2012 2011 2012 2011 2012 2011 Revenues: Programrevenues: Charges for services $ 1,021,021 $ 1,174,120 $ 5,572,013 $ 5,618,029 $ 6,593,034 $ 6,792,149 Operating grants and contributions 3,499,465 2,325,158 698,769 190,442 4,198,234 2,515,600 Capital grants and contributions 1,350,147 1,751,464 206,681 28,250 1,556,828 1,779,714 General revenues: Property taxes 10,354,188 9,952,156 - - 10,354,188 9,952,156 Tax increments 2,332,863 2,239,668 - - 2,332,863 2,239,668 Grants and contributions not restricted 20,724 312,519 - - 20,724 312,519 Investment earnings 106,304 108,956 9,800 8,319 116,104 117,275 Gain on sale of capital 38,427 42,343 8,000 26,879 46,427 69,222 assets Total revenues 18,723,139 17,906,384 6,495,263 5,871,919 25,218,402 23,778,303 Expenses: General government 2,056,756 1,719,970 - - 2,056,756 1,719,970 Public safety 6,382,270 6,213,995 - - 6,382,270 6,213,995 Health and welfare 136,528 170,018 - - 136,528 170,018 Highways and streets 3,226,807 3,332,067 - - 3,226,807 3,332,067 Urban redevelopment and housing 2,362,030 2,859,900 - - 2,362,030 2,859,900 Culture and recreation 1,726,812 1,644,834 - - 1,726,812 1,644,834 Interest on long-term debt 811,914 871,902 - - 811,914 871,902 Water - - 1,365,542 1,263,835 1,365,542 1,263,835 Sewer - - 1,816,058 1,800,126 1,816,058 1,800,126 Storm sewer - - 451,659 407,057 451,659 407,057 Refuse - - 862,286 778,044 862,286 778,044 Pavilion/ice arena - - 430,082 416,166 430,082 416,166 Housing and redevelopment authority - - 563,863 607,090 563,863 607,090 Total expenses 16,703,117 16,812,686 5,489,490 5,272,318 22,192,607 22,085,004 Increase in net assets before 2,020,022 1,093,698 1,005,773 599,601 3,025,795 1,693,299 transfers Transfers 145,000 145,000 (145,000) (145,000) - - Increase in net position 2,165,022 1,238,698 860,773 454,601 3,025,795 1,693,299 Net position - January 1 46,265,495 45,026,797 17,806,958 17,352,357 64,072,453 62,379,154 Net position - December 31 $ 48,430,517 $ 46,265,495 $ 18,667,731 $ 17,806,958 $ 67,098,248 $ 64,072,453 20 Governmental activities: Property taxes increased in 2012 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 position increased primarily due to conservative spending, grants for public safety & development activities and increased fee and license revenue. 21 Business-type activities. Business-type activities had an increase in net position 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. 22 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 $18,598,845, an increase of $3,556,610 in comparison with the prior year. The key factor of the increase is the sale of bonds for projects that are not yet complete and development and public safety grants for specific programs. Approximately 41% of fund balance or $7,692,572 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 $4,488,876. This represents 86.4% 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 42.8% 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 $161,932 during the current fiscal year. Revenues exceeded expenditures by $171,932 before transfers. This increase was a result of conservative spending and an increase in public safety program grants for specific programs. The Economic Development fund has a total fund balance of $3,681,063 of which $1,683,148 is non- spendable and $1,997,915 is committed for economic development. The fund balance increased by $816,797 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 $1,169,639 all of which is restricted for the tax increment district activities. The fund balance increased by $354,842 as a result of higher than expected tax increment revenues and reduced developer expenditures. The Arts Center fund has a total fund balance of ($1,109,599) of which $132 is nonspendable and ($1,109,731) is unassigned. The fund balance deficit increased by $41,710 as the Arts Center struggles to balance quality programming with ticket sales, decreased donations and related 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. 23 The 2009B Housing Improvement refunding bonds of 1999A bond fund has a total fund balance of $286,570, all of which is restricted for the payment of debt service. The fund balance increased by $33,674 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 $545,381, all of which is restricted for the payment of debt service. The fund balance increased by $48,737 as special assessment revenues exceeded current debt payment requirements. The Permanent Improvement Revolving fund has a total fund balance of $2,389,702 which is assigned for construction projects. The fund balance increased by $1,826,169 as a result of the 2012 bond sale for a street project that crossed years. 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 position of the Water fund at the end of the year amounted to $90,075. The unrestricted net position is used to pay for infrastructure improvements. The increase in net assets amounted to $172,329 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 $406,989. The unrestricted net assets are used to pay for infrastructure improvements. The increase in net assets amounted to $338,886 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. Unrestricted net assets of the Storm Sewer Utility fund at the end of the year amounted to $745,417. The unrestricted net assets are used to pay for infrastructure improvements. The growth in net assets amounted to $233,869 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 ($82,430). The unrestricted net assets are used to pay for operating costs of the Pavilion. Net assets decreased by $22,282; 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 departmental budget changes but did no 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: 24 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 $112,132 due to increases in license and permit revenue, fines, federal grants, recreation fees and donations. This was offset by a decrease in tax revenues, interest income and miscellaneous items. Expenditures were under the budget by $49,800 and was due conservative spending, reduced maintenance costs, energy conservation measures and the transfer of dispatch services to the County. The net effect of these budget impacts was a net budgetary increase in fund balance of $161,932 after transfers. 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, 2012, amounts to $68,585,518 (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 $2,720,476 for infrastructure projects. A total of $3,782,727 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 $729,688. Major purchases included public works equipment, public safety vehicles and equipment. Vehicle and equipment deletions totaled $603,724. 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 Activities Business-Type Activities Total 2012 2011 2012 2011 2012 2011 Land $ 5,805,711 $ 5,805,711 $ 228,463 $ 228,463 $ 6,034,174 $ 6,034,174 Buildings 14,837,699 15,070,635 3,643,644 3,773,624 18,481,343 18,844,259 Infrastructure - - 8,095,435 9,024,203 8,095,435 9,024,203 Improvements 21,985,176 20,078,683 7,934,815 6,268,860 29,919,991 26,347,543 Vehicles 1,616,141 1,769,872 383,623 444,919 1,999,764 2,214,791 Equipment 1,465,495 1,283,340 196,538 145,754 1,662,033 1,429,094 Construction in progress 1,814,572 2,431,303 578,206 1,032,644 2,392,778 3,463,947 $ 47,524,794 $ 46,439,544 $ 21,060,724 $ 20,918,467 $ 68,585,518 $ 67,358,011 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 $28,955,000. Of this amount $3,590,000 comprises tax increment redevelopment debt, 25 and $17,410,000 comprises general obligation and special assessment debt, all of which is backed by the full faith and credit of the government. Another $3,175,000 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, $4,780,000, represents bonds secured solely by specified revenue sources (i.e., revenue bonds). City of Hopkins Outstanding Debt General Obligation and Revenue Bonds December 31 Governmental Activities Business-Type Activities Total 2012 2011 2012 2011 2012 2011 HRA lease revenue bonds $ - $ 2,185,000 $ -$ - $ -$ 2,185,000 G.O. Tax increment bonds 3,590,000 3,790,000 - - 3,590,000 3,790,000 G.O. Housing fee bonds 3,175,000 3,510,000 - - 3,175,000 3,510,000 G.O. Equipment certificates 795,000 - - - 795,000 - G.O. Capital improvement bonds 9,385,000 8,005,000 - - 9,385,000 8,005,000 G.O. Special assessment bonds 7,230,000 4,385,000 - - 7,230,000 4,385,000 Revenue bonds - - 4,780,000 3,805,000 4,780,000 3,805,000 $ 24,175,000 $ 21,875,000 $ 4,780,000 $ 3,805,000 $ 28,955,000 $ 25,680,000 The City of Hopkins total bonded debt increased by $3,275,000 or 12.7% during the current fiscal year. The increase is a result of two bond sales, the 2012A G.O. Capital Improvement Bonds that refinanced the 2003 HRA Lease Revenue Bonds and the 2012B G.O. Bonds that financed equipment and street improvements including water, sewer and storm sewer infrastructure. 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. The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At December 31, 2012, the debt limit for the City is $42,188,769. Of the total debt, $10,180,000 of general obligation and revenue bonds is applicable to the limit. The legal debt margin is $32,786,837. The City of Hopkins was upgraded to a “AA” rating from Standard & Poor’s in December 2009 which was reaffirmed in 2012 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 2013 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 26 as a result of economic conditions. Property values continue to remain flat and this was taken into consideration when determining estimated tax revenues. Also taken into consideration is that the City’s population would remain constant. In addition during late 2012 the City transferred its dispatch operation to the County which will result in an annual savings of approximately $300,000. This savings was offset by negotiated union settlements for 2013. As a result of these factors the City prepared a budget for 2013 that included a modest increase of 0.23% in expenditures. During the current fiscal year, unassigned fund balance in the general fund increased to $4,488,876 or 43% 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 BASIC FINANCIAL STATEMENTS 28 City of Hopkins Statement of Net Position December 31, 2012 Primary Government Governmental Business-Type ActivitiesActivities Total Assets Cash and cash equivalents $ 19,611,804$ 2,440,931 $ 22,052,735 Taxes receivable 219,805- 219,805 Special assessments receivable 5,176,148- 5,176,148 Accounts receivable 292,623445,536 738,159 Intergovernmental receivable 180,9106,076 186,986 Interest receivable 28,5523,455 32,007 Internal balances 56,356(56,356) - Inventories 104,05930,752 134,811 Prepaid items 93,53616,925 110,461 Cash and cash equivalents 1,503,975- 1,503,975 Long-term receivables 6,00050,021 56,021 Land held for resale 697,098- 697,098 Capital assets, non depreciable 7,620,283806,669 8,426,952 Capital assets, net of depreciation 39,904,51120,254,055 60,158,566 Total Assets 75,495,66023,998,064 99,493,724 Deferred Outflows of Resources Deferred charge on refunding 386,857- 386,857 Total Deferred Outflows of Resources 386,857- 386,857 Liabilities Accounts payable 1,341,860171,836 1,513,696 Salaries payable 352,81651,883 404,699 Due to other governments 5,08522,173 27,258 Accrued interest payable 318,38449,323 367,707 Unearned revenue 61,3185,696 67,014 Non current liabilities: Compensated absences due within one year 721,147108,079 829,226 Compensated absences due in more than one year 77,90757,107 135,014 Net OPEB liability 167,80231,276 199,078 Capital lease due within one year 41,093- 41,093 Capital lease due in more than one year 237,990- 237,990 Bonds due within one year 3,265,000535,000 3,800,000 Bonds due in more than one year 20,861,5984,297,960 25,159,558 Total Liabilities 27,452,0005,330,333 32,782,333 Net Position Net investment in capital assets 31,891,22916,405,495 48,296,724 Restricted for: Economic development 2,057,928- 2,057,928 Park improvements 83,232- 83,232 Debt service 6,543,187- 6,543,187 Unrestricted 7,854,9412,262,236 10,117,177 Total Net Position $ 48,430,517$ 18,667,731 $ 67,098,248 The notes to the financial statements are an integral part of this statement. 29 10,354,188 2,332,863 20,724 116,104 46,427 (145,000) - -(5,188,452)(797,588)(811,914)(23,315)987,973(9,844,511) -$ (787,088)-(1,782,562)-(1,491,891)-(10,832,484) 333,897 27,011168,679349,68662,79696,230987,973 12,870,3063,025,795$ 48,430,517$ 18,667,731$ 67,098,248 46,265,49517,806,95864,072,453 Activities Total Net Revenues (Expenses) and Changes in Net Position --(23,315) - 168,679333,897349,68662,79696,230987,973 -(127,200) -- 9,8008,000860,773 Business-type $ 2,056,756$ 40,360$ 650,845$ 578,463$ (787,088)$ 771,684(1,782,562)(797,588)(811,914) $ 22,192,607$ 6,593,034$ 4,198,234$ 1,556,828(10,832,484) -(5,188,452)-(1,491,891)4)------- 27,011 10,354,1882,332,86320,724106,30438,427145,00012,997,5062,165,022 1,350,147(10,832,48 Governmental Activities -------- 206,681 681 Capital Grants and Contributions 206, For the Year Ended December 31, 2012 Statement of Activities City of Hopkins Operating Grants and -- 1,034,176108,208594,335245,206150134,789335,791 866,6953,499,46530,548197,491698,769 Program Revenues Contributions 30 - 159,642684,018 55,33178,226021,0211,534,0712,015,166801,345894,53470,976255,9215,572,013 3,444 Expenses Charges for Services 1, Grants & contributions not restricted Gain on disposal of capital assets Unrestricted investment earnings an integral part of this statement. et position - December 31 Change in net position revenues et position - January 1 136,528430,082 6,382,270 3,226,807 1,726,812811,9141,365,5421,816,058451,659862,286 563,8630 Housing 2,362,030Total Governmental activities 16,703,117 Total Business-type activities 5,489,49 revenues: increments taxes general Property Transfers General Total Tax Water Refuse NN The notes to the financial statements are Housing and Redevelopment Authority Functions/Programs Urban Redevelopment and Interest on long-term debt Business-Type Activities: Governmental Activities: Culture and Recreation Highways and Streets General Government Health and Welfare Pavilion/Ice Arena Total Government Public Safety Storm Sewer Sewer City of Hopkins Balance Sheet Governmental Funds December 31, 2012 Housing Improvement Bonds of 1999A Economic Tax Increment Refunding Bonds General Fund Development District 2-11 Arts Center of 2009B Assets Cash and cash equivalents $ 3,983,900 $ 2,019,213 $ 2,087,231 $ 100 $ 284,081 Taxes receivable 187,043 3,356 - - - Special assessments receivable - - - - 1,025,197 Accounts receivable 117,348 98 - 31,228 - Rehabilitation loans receivable - - - - - Due from other governments 146,219 --- - Interest receivable 7,361 2,784 3,016 - 393 Due from other funds 1,214,784 986,050 -- - Inventories 104,059 - - - - Prepaid items 92,441 - - 132 - Long-term receivable - - - - - Cash - temporarily restricted ---- - Property held for resale -697,098 -- - Total Assets $ 5,853,155 $ 3,708,599 $ 2,090,247 $ 31,460 $ 1,309,671 Liabilities and Fund Balances Liabilities: Accounts payable $ 195,237 $ 11,509 $ 920,608 $ 21,342 $ 246 Salaries payable 322,519 6,033 - 11,986 - Accrued interest payable - - - - - Due to other funds - - - 1,083,184 - Due to other governments 4,061 - - 134 - Deferred revenue 4,093 7,856 - 24,413 - Total Liabilities 525,910 25,398 920,608 1,141,059 246 Deferred Inflows of Resources Taxes and special assessments 133,102 2,138 -- 1,022,855 Total Deferred Inflows of Resources 133,102 2,138 -- 1,022,855 Fund balances: Non-spendable 196,500 1,683,148 -132 - Restricted - - 1,169,639 - 286,570 Committed - 1,997,915 - - - Assigned 508,767 - - - - Unassigned 4,488,876 - - (1,109,731) - Total Fund Balances 5,194,143 3,681,063 1,169,639 (1,109,599) 286,570 Total Liabilities and Fund Balances $ 5,853,155 $ 3,708,599 $ 2,090,247 $ 31,460 $ 1,309,671 The notes to the financial statements are an integral part of this statement. 31 City of Hopkins Balance Sheet Governmental Funds December 31, 2012 Housing Improvement Bonds of 1999B Permanent Nonmajor Total Refunding Bonds Improvement Governmental Governmental of 2009B Revolving Fund Funds Funds Assets Cash and cash equivalents $ 539,154 $ 2,534,549 $ 5,886,245 $ 17,334,473 Taxes receivable --29,406 219,805 Special assessments receivable 1,813,297 1,450,072 887,582 5,176,148 Accounts receivable -264 115,587 264,525 Rehabilitation loans receivable - - 28,098 28,098 Due from other governments --34,691 180,910 Interest receivable 760 2,750 8,320 25,384 Due from other funds --- 2,200,834 Inventories - - - 104,059 Prepaid items - - 963 93,536 Long-term receivable - - 6,000 6,000 Cash - temporarily restricted -- 1,503,975 1,503,975 Property held for resale ---697,098 Total Assets $ 2,353,211 $ 3,987,635 $ 8,500,867 $ 27,834,845 Liabilities and Fund Balances Liabilities: Accounts payable $ 483 $ 159,515 $ 20,015 $ 1,328,955 Salaries payable - - 12,278 352,816 Accrued interest payable - - 526 526 Due to other funds - - 1,083,114 2,166,298 Due to other governments - - 890 5,085 Deferred revenue - - 36,905 73,267 Total Liabilities 483 159,515 1,153,728 3,926,947 Deferred Inflows of Resources Taxes and special assessments 1,807,347 1,438,418 905,193 5,309,053 Total Deferred Inflows of Resources 1,807,347 1,438,418 905,193 5,309,053 Fund balances: Non-spendable --35,061 1,914,841 Restricted 545,381 - 4,310,453 6,312,043 Committed --681,474 2,679,389 Assigned - 2,389,702 2,396,015 5,294,484 Unassigned --(981,057)2,398,088 Total Fund Balances 545,381 2,389,702 6,441,946 18,598,845 Total Liabilities and Fund Balances $ 2,353,211 $ 3,987,635 $ 8,500,867 $ 27,834,845 The notes to the financial statements are an integral part of this statement. 32 City of Hopkins Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position December 31, 2012 Fund balances of governmental funds $ 18,598,845 governmental activities Amounts reported for in the statement of net position are different because: Capital Assets used in governmental activities are not financial resources and, therefore, not reported in the governmental funds. Capital assets 66,105,260 Less accumulated depreciation (21,358,163) Other long-term assets not available to pay current period expenditures and, therefore, are deferred in the governmental funds. 5,321,002 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 activities in the statement of net position. 3,986,420 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 governmental funds. Long-term liabilities (24,609,704) Less deferred charges 386,857 Net assets of governmental activities $ 48,430,517 33 34 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2012 Housing Improvement Bonds of 1999A Economic Tax Increment Refunding General Fund Development District 2-11 Arts Center Bonds of 2009B Revenues Property taxes $ 8,721,264 $ 264,352 $ - $ - $ - Tax increments - - 2,132,273 - - Special assessments - - - - 152,210 Intergovernmental 570,370 424,264 - 2,222 - Fees, licenses and permits 476,296 --- - Charges forservices 302,432 - - 334,653 - Fines 231,110 - - - - Investment earnings 11,149 29,257 7,663 - 873 Other miscellaneous revenues 356,036 421,275 -239,041 - Total Revenues 10,668,657 1,139,148 2,139,936 575,916 153,083 Expenditures Current: General government 1,665,732 - - - 668 Public safety 5,988,798 - - - - Health and welfare 136,169 - - - - Highways and streets 2,090,562 - - - - Urban redevelopment and housing 83,705 261,351 1,572,779 - - Culture and recreation 524,872 - - 765,546 - Debt service: Principal retirement - - - - 85,000 Interest and fiscal fees - - - - 33,741 Capital Outlay 6,887 - - - - Total Expenditures 10,496,725 261,351 1,572,779 765,546 119,409 Excess (deficiency) of revenues over expenditures 171,932 877,797 567,157 (189,630) 33,674 Other financing sources (uses) Improvement bonds issued - - - - - Discount on improvement bonds ---- - Premium on improvement bonds ---- - Payment to refunded bond escrow agent ---- - Transfer in - - - 147,920 - Transfer out (10,000)(61,000)(212,315)- - Total Other Financing Sources (Uses) (10,000)(61,000)(212,315)147,920 - Net change in fund balances 161,932 816,797 354,842 (41,710) 33,674 Fund Balance (Deficit) - January 1 5,032,211 2,864,266 814,797 (1,067,889) 252,896 Fund Balance (Deficit) - December 31 $ 5,194,143 $ 3,681,063 $ 1,169,639 $ (1,109,599) $ 286,570 The notes to the financial statements are an integral part of this statement. 35 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2012 Housing Improvement Bonds of 1999B Permanent Refunding Improvement Non-major Total Bonds of Revolving Governmental Governmental 2009B Fund Funds Funds Revenues Property taxes $ - $ 5,919 $ 1,412,410 $ 10,403,945 Tax increments --200,590 2,332,863 Special assessments 252,793 729,486 173,460 1,307,949 Intergovernmental - - 552,608 1,549,464 Fees, licenses and permits ---476,296 Charges forservices - - 150,639 787,724 Fines --22,420 253,530 Investment earnings 1,841 1,412 42,040 94,235 Other miscellaneous revenues --864,995 1,881,347 Total Revenues 254,634 736,817 3,419,162 19,087,353 Expenditures Current: General government 891 - 211,811 1,879,102 Public safety - - 155,408 6,144,206 Health and welfare - - - 136,169 Highways and streets - 26,155 45,772 2,162,489 Urban redevelopment and housing - - 430,859 2,348,694 Culture and recreation - - 282,540 1,572,958 Debt service: Principal retirement 145,000 - 1,405,000 1,635,000 Interest and fiscal fees 60,006 - 725,491 819,238 Capital Outlay - 1,895,355 607,455 2,509,697 Total Expenditures 205,897 1,921,510 3,864,336 19,207,553 Excess (deficiency) of revenues over expenditures 48,737 (1,184,693)(445,174)(120,200) Other financing sources (uses) Improvement bonds issued -- 5,985,000 5,985,000 Discount on improvement bonds --(12,830)(12,830) Premium on improvement bonds --65,705 65,705 Payment to refunded bond escrow agent -- (2,159,791)(2,159,791) Transfer in - 3,297,573 1,342,686 4,788,179 Transfer out -(286,711)(4,419,427)(4,989,453) Total Other Financing Sources (Uses) - 3,010,862 801,343 3,676,810 Net change in fund balances 48,737 1,826,169 356,169 3,556,610 Fund Balance (Deficit) - January 1 496,644 563,533 6,085,777 15,042,235 Fund Balance (Deficit) - December 31 $ 545,381 $ 2,389,702 $ 6,441,946 $ 18,598,845 The notes to the financial statements are an integral part of this statement. 36 City of Hopkins 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, 2012 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances total governmental funds $ 3,556,610 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. 1,050,645 The net effect of various miscelleneous transactions involving capital assets (i.e. sales, trade-ins, and donations) is a decrease to net position. (9,407) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds (414,710) 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 position. 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. (2,366,315) External revenues and expenditures of the internal service funds reported in the statement of activities are not reported as revenues and expenditures in governmental funds. 348,199 Change in net position of governmental activities $ 2,165,022 37 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended December 31, 2012 FinalVariance with Approved Final Budget Original Budget Budget Actual Over/Under Revenues Property taxes $ 8,889,091$ 8,889,091$ 8,721,264 $ (167,827) Intergovernmental 512,370512,370570,370 58,000 Fees, licenses and permits 360,115360,115476,296 116,181 Charges for services 245,150245,150302,432 57,282 Fines 125,500125,500231,110 105,610 Investment earnings 25,00025,00011,149 (13,851) Other miscellaneous revenues 399,299399,299356,036 (43,263) Total Revenues 10,556,52510,556,52510,668,657 112,132 Expenditures General government 1,734,3621,728,8321,665,732 63,100 Public safety 5,858,1035,858,6335,988,798 (130,165) Health and welfare 140,520140,520136,169 4,351 Highways and streets 2,168,6772,168,6772,090,562 78,115 Urban redevelopment and housing 85,99985,99983,705 2,294 Culture and recreation 528,864533,864524,872 8,992 Capital Outlay 30,00030,0006,887 23,113 Total Expenditures 10,546,52510,546,52510,496,725 49,800 Excess (deficiency) of revenues over expenditures 10,00010,000171,932 161,932 Other Financing Sources (Uses): Transfer out (10,000)(10,000)(10,000) - Total Other Financing Sources (Uses) (10,000)(10,000)(10,000) - Net change in fund balance --161,932 161,932 Fund balance - January 1 5,032,2115,032,2115,032,211 - Fund balance - December 31 $ 5,032,211$ 5,032,211$ 5,194,143 $ 161,932 The notes to the financial statements are an integral part of this statement. 38 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Major Special Revenue Funds Economic Development Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues: Property taxes $ 175,000$ 175,000$ 264,352 $ 89,352 Intergovernmental --424,264 424,264 Investment earnings 1,5001,50029,257 27,757 Other miscellaneous revenues 12,00012,000421,275 409,275 Total Revenues 188,500188,5001,139,148 950,648 Expenditures: Current: Urban redevelopment and housing 207,553207,553261,351 (53,798) Total Expenditures 207,553207,553261,351 (53,798) Other Financing Sources (Uses) Transfer out (61,000)(61,000)(61,000) - Net change in fund balance (80,053)(80,053)816,797 896,850 Fund balance - January 1 2,864,2662,864,2662,864,266 - Fund balance - December 31 $ 2,784,213$ 2,784,213$ 3,681,063 $ 896,850 The notes to the financial statements are an integral part of this statement. 39 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Major Special Revenue Funds Tax Increment District 2-11 Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues: Tax increments $ 2,030,000$ 2,030,000$ 2,132,273 $ 102,273 Investment earnings 3,0003,0007,663 4,663 Total Revenues 2,033,0002,033,0002,139,936 106,936 Expenditures: Current: Urban redevelopment and housing 1,749,7081,749,7081,572,779 176,929 Total Expenditures 1,749,7081,749,7081,572,779 176,929 Other Financing Sources (Uses) Transfer out (188,000)(188,000)(212,315) (24,315) Net change in fund balance 95,29295,292354,842 259,550 Fund balance - January 1 814,797814,797814,797 - Fund balance - December 31 $ 910,089$ 910,089$ 1,169,639 $ 259,550 The notes to the financial statements are an integral part of this statement. 40 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Major Special Revenue Funds Arts Center Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues: Intergovernmental$ -$ -$ 2,222 $ 2,222 Charges for services 353,153353,153334,653 (18,500) Other miscellaneous revenues 280,174280,174239,041 (41,133) Total Revenues 633,327633,327575,916 (57,411) Expenditures: Current: Culture and recreation 779,452779,452765,546 13,906 Total Expenditures 779,452779,452765,546 13,906 Other Financing Sources (Uses) Transfer in 147,920147,920147,920 - Net change in fund balance 1,7951,795(41,710) (43,505) Fund Balance (Deficit) - January 1 (1,067,889)(1,067,889)(1,067,889) - Fund Balance (Deficit) - December 31 $ (1,066,094)$ (1,066,094)$ (1,109,599) $ (43,505) The notes to the financial statements are an integral part of this statement. 41 3,168 21,820 2,554 $ 118,303 $ 303,973 $ 778,896 $ 37,506 $ 1,202,253 $ 2,440,931 $ 2,277,331 - 2,302,319 - - 10,774,799 7,305,416 10,286,767 128,242 2,584 28,497,808 - 6,760,671 (3,982,974) $ 44,994 $ 14,032 $ 23,434 $ 24,331 $ 65,045 $ 171,836 $ 12,905 - - - receivable - - - 50,021 - 50,021 - 13,203 12,579 1,103 - 3,867 30,752 - expenses - - - 292 16,633 16,925 - 16,447 5,150 26,800 - 180,066 228,463 - 6,001,775 4,375,664 8,000,370 2,404,953 3,271,658 24,054,420 5,080,016 15,203 6,391 1,758 8,882 19,649 51,883 - absences 33,777 17,739 5,845 17,010 33,708 108,079 721,147 revenue 3,528 - - 2,168 - 5,696 - current - - - - - - 20,299 10 978,526 756,905 205 41,642 445,536 - assets 5,750,345 3,866,407 7,209,792 2,233,929 2,000,251 21,060,724 2,777,697 Governmental Service Funds Activities Internal 3,455 2,993,696 7,813,890 1,595,323 34,536 22,173 49,323 6,076 578,206 (17,652,966)535,000 - Funds Totals 936 6,076 1,271,407 8,250 4,485,823 713,372 34,536 5,772 (3,389,844) - -- 248,693 53,903 158,7 Proprietary Nonmajor - 171,024 3,283,581 81,935 396 1,116 (1,259,829) ----- 9,408 192,087 9,194 83, Pavilion/ Ice Arena Business-Type Activities-Enterprise Funds Statement of Net Position December 31, 2012 Proprietary Funds City of Hopkins 1,385 790,578 200,965 11,264 12,656 (3,316,004)205,000 -- --- Storm Sewer Utility 42 618 509,257 127,956 345,905 14,734 14,424 70,000 137,320 (3,918,020) --- - Sewer Utility 516 251,430 241,035 44,486 442,847 1,271 21,127 260,000 379,900 (5,769,269) -- - 11 Utility Water Assets Liabilities Less accumulated depreciation Capital Assets, non depreciable Due from other governments Machinery and equipment Total current liabilities Accrued interest receivable Capital Assets, depreciable Construction in progress Due to other governments Building and structures Accrued interest payable Revenue bonds - current Total current assets Advances to other funds Cash and investments noncurrent system Accounts receivable Due to other funds Accounts payable Assets Current liabilities: payable oncurrent assets Distribution Compensated - lease Current assets Total Total Inventory Unearned Salaries Prepaid Capital Land Loan N - - - 336,691 2,498,614 $ 3,986,420 absences 31,073 24,566 1,468 - - 57,107 77,907 payable - - - - - - 258,784 386,689 1,093,596 1,487,806 Governmental Service Funds Activities Internal 31,276 21,820 4,297,960 4,408,163 16,405,495 2,262,236 $ 3,785,751 $ 3,181,873 $ 6,446,172 $ 2,151,499 $ 3,102,436 $ 18,667,731 Funds Totals 198 253,454 169,222 5, 10,512 10,512 2,000,251 1,102,185 -- Proprietary Nonmajor 21,820 177,731 199,551 2,233,929 (82,430) - Pavilion/ Ice Arena Business-Type Activities-Enterprise Funds Statement of Net Position 1,304,037 1,305,505 5,700,755 745,417 - - December 31, 2012 Proprietary Funds Storm Sewer City of Hopkins 1,554, Utility 43 1,056,471 1,193,791 2,774,884 10,382 1,021,523 406,989 - Sewer Utility 2,216,024 90,075 10,382 1,794,669 1,836,124 3,695,676 The notes to the financial statements are an integral part of this statement. - Utility Water Unrestricted Revenue bonds payable (net of unamortized Total noncurrent liabilities Net investment in capital assets Advance from other funds discounts and premium) Total Net Position Total Liabilities oncurrent liabilities: Net OPEB liability Compensated lease et Position Capital NN 436,614 479,892 12,069 47,834 9(22,282)(43,710)799,0921,925 5,981,067$ 436,614 34,929 12,941 432,022 (43,278) (14,700) - 45,203 - 348,199 3,638,221 36$ 18,667,731$ 3,986,420 346,274 - Service Funds Governmental Activities Internal (150,460)(145,000) 74,4296,055,4963,534,637920,229884,1645,339,030716,4669,800215,2868,00082,626206,681860,77346517,806,958 Proprietary Funds Total 795,755$ 398,774$ 1,134,999$ (25,000) (262,941) - - 3,945215,286206,681 28,2091,163,208770465,835210,5441,426,149219,231137,971 Total net position - December 31 $ 3,785,751$ 3,181,873$ 6,446,172$ 2,151,499$ 3,102,4 Nonmajor 749,2,964, Statement of Revenues, Expenses and Changes in Net Position (3,176)(2,143)(22,282) (20,139) ---- 406,76769,390426,9061,033 7,993343,50614,0102,173,781 Ice Arena Pavilion/ For the Year Ended December 31, 2012 Business-Type Activities-Enterprise Funds Proprietary Funds City of Hopkins 273)(120,000) (42,456) --- 801,34577,247409,2034,183 5,590116,524432392,142233,8696,212,303 Storm Sewer transfers 172,329338,886353,86 215, (38, Utility $ 1,519,658$ 2,131,881$ 44 (43,227)(38,238) --- 639 18,074955148,8748314,350338,886 459,026164,9311242,842,987 2,149,1,772, 377, Sewer Utility 1, an integral part of this statement. 601)(57,951) ---- 14,563 1,534,221 865,811214,263223,867 1,303,941 230,2803,650 172,329 3,613,422 (61, Utility Water Administration onoperating revenues (expenses) The notes to the financial statements are Income (loss) before contributions and Total nonoperating revenues Total operating expenses Total operating revenues Interest/fiscal agent expense Total net position - January 1 Change in net position Transfers and contributions Cost of sales and services Intergovernmental grants Operating income (loss) Gain on sale of assets Capital contributions Charges for services Investment earnings Operating expenses Operating revenues (expenses) Depreciation Transfers Other N - 340,678 (420,355) (1,353,717) (41,348) (146,818) (699,786) (2,662,024) (36,840) - 26,271 (214,263) (148,874) (77,247) (14,010) (339,874) (794,268) (12,941) (6,653) 437,813 631,574 (94,745) (184,268) 783,721 436,998 - Construction of capital assets (388,050) (319,960) (249,503) (45,053) - (1,002,566) - - (98,055) (15,058) - (39,158) 600 1,008,521 1,510,499 1,960,580 - - - - - - nancing Activities: Purchases of capital assets - - - - (23,855) (23,855) (476,034) Loss on disposal of capital assets - (141,476) (136,142) 1,033 4,888 11,220 15,895 118,303 200,660 380,831 36,906 193,732 930,432 316,751 $ 118,303 $ 303,973 $ 778,896 $ 37,506 $ 1,202,253 $ 2,440,931 $ 2,277,331 320,000 175,000 - 1,425,000 346,274 Proceeds from sales of capital assets 3,650 4,350 - - - 8,000 47,834 Governmental $ 1,539,316 2,143,659 $ 804,130 $ 401,363 $ 1,244,693 $ 6,133,161 $ 119,830 Funds Nonmajor Activities ilion/ Proprietary Internal Arena Funds Totals Service - (626,771) (407,315) (203,255) (53,961) (212,545) (389,301) (1,266,377) - (25,000) (145,000) - (450,000) - - - 421,967 421,967 276,967 - - - - - 396,967 (135,362) 130,618 (23,855) 671 - - (122,735) - - - - - Funds - Activities-Enterprise Utility Utility Utility Ice Pav - - - - - (120,000) (32,223) (25,859) - (210,000) (60,000) (180,000) 398,065 - 680 4,619 - (120,000) Sewer For the Year Ended December 31, 2012 Storm Business-type - 103,313 Statement of Cash Flows 124,956 (237,833) Proprietary Funds City of Hopkins - - - - - - - Proceeds from capital debt 760,000 170,000 Sewer 45 (504,036) - - - - - Interest and other payments (40,644) - - - - Water Net cash provided by (used in) noncapital financing Net cash provided by (used in) by operating activities Net cash provided by (used in) capital and related Cash Flows from Noncapital Financing Activities Net increase (decrease) in cash and investments Internal activity-payments from other funds Receipts from interfund services provided Internal activity-payments to other funds Payments for interfund services used Cash Flows from Capital and Related Fi Payments for interfund services used Cash Flows From Investing Activities Cash Flows from Operating Activities Receipts from customers and users Cash and investments - December 31 Cash and investments - January 1 Intergovernmental grants Miscellaneous revenues Payments to employees Capital lease payments Payments to suppliers financing activities Transfers in (out) Interest received Bond payments activities $ 230,280 $ 377,124 $ 392,142 $ (20,139)$ (262,941)$ 716,466 $ (43,278) 164,931 215,432 69,390 210,544 884,164 432,022 - - ,998 - 264 - 23,630 - - - 987) (56,185) 24,360 - - Governmental Funds Nonmajor Activities ilion/ Proprietary Internal 94,745)$ (184,268)$ 783,721 $ 436 Arena Funds Totals Service -$ -$ -$ 206,681 $ 206,681 $ - 24,698 2,785 (21,720) 81,485 52,967 - (122,735) (188,442) (815,213) (23) (4,616) - - - (1,271) (1,905) (22) (16,633) (16,655) - - - 463 (15,619) (6, - 16,316 Business-type Activities-Enterprise Funds - (216) - - (6,653)$ 437,813 $ 631,574 $ ( Utility Utility Utility Ice Pav - (248) - - - - Sewer For the Year Ended December 31, 2012 interest payable 38,203 (93,245) 21, Storm Statement of Cash Flows Proprietary Funds City of Hopkins 157 (4,534) - - (167) - - - (3,287) (6,296) - Capital contributions $ -$ Sewer 223,867 46 8,382 - (219) - (504,036) - - Water $ an integral part of this statement. Accounts, compensated absences and accrued (loss) to net cash provided by (used in) operating and financing activities: Net cash provided (used) by operating activities Reconciliation of operating income (loss) to net rating activities: Adjustments to reconcile operating income The notes to the financial statements are Due from other governments Due to other governments Due from other funds Accounts receivable cash provided (used) by ope (Increase) decrease in: Due to other funds Miscellaneous income Unearned revenue Operating income (loss) Depreciation expense Noncash investing, capital, Increase (decrease) in: Prepaid expense Inventory activities: NOTES TO THE FINANCIAL STATEMENTS 47 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 position and the statement of changes in net position) 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 48 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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. Theeconomic development special revenue fund accounts for development opportunities of the city. 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. Thearts center special revenue fund accounts for the activities of the Hopkins Center for the Arts. Sources 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. 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. 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. 49 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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. 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. 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. 50 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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. 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 51 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 position. Bond premiums and discounts, amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. 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 POSITION/FUND EQUITY Net position represents the difference between assets and liabilities in the government-wide financial statements. Net position invested in capital assets 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 position is 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. 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 per City Legislative Policy 6-G, Fund Balance. 52 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 5. 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 delinquent taxes receivable, and are fully offset by deferred inflows 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, 2012, there were 8 notes/bond issues outstanding, with an aggregate principal amount payable of approximately $31.5 million. 53 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 POSITION The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. 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 $ 24,126,598 Accrued interest payable 315,304 Net OPEB obligation 167,802 Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities $ 24,609,704 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 position 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: Capital outlay $ 2,470,049 Depreciation expense (1,419,404) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 1,050,645 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 position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.” The details of these differences are as follows: 54 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 Principal repayments $ (1,635,000) Refunded debt (2,050,000) Issuance of general obligation bonds 5,985,000 Less discounts (12,830) Less deferred costs on refunding (235,120) Add premium 65,704 OPEB expense 41,613 Amortization of deferred losses on refunding 189,068 Amortization of bond premium and discount 39,904 Prior year interest expense (337,328) Accrue interest expense for current year 315,304 Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities 2,366,315 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 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 no supplemental budgetary appropriation throughout the year. 55 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS For the year ended December 31, 2012, actual expenditures exceeded the budgeted amounts in the following funds: State Chemical Assessment Team $ 33,763 Economic Development 53,798 Parking 4,724 Communications 43,903 Depot Coffee House 166,002 Tax Increment District Entertainment District 12,097 Tax Increment District Sonoma 9,926 Tax Increment District Oaks of Mainstreet 389 Tax Increment Marketplace & Main 398,529 These over expenditures were funded by greater than anticipated revenues of the State Chemical Assessment Team, Economic Development, Parking, and Tax Increment District Sonoma funds, from fund balance in the Communication fund, and by future revenues in the Tax Increment District Sonoma and Oaks Districts. The Depot Coffee House brought the coffee business back under the City’s operation which added additional unbudgeted revenue, however not quite sufficient to cover first year costs of the operation. The remaining shortfall will be covered by future operation and partnership revenues. 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 E-911 Service Fee and Community Development Block Grant Funds are non-budgeted funds. C. FUND BALANCE DEFICITS At December 31, 2012, the following funds had deficit fund balances or net position. These deficits will be funded through future tax levies, contributions, grants, charges for services or developer payments: Art Center $1,109,599 Tax Increment District Entertainment District 157,278 Tax Increment District Sonoma 241,099 5th Avenue Flats 373,915 Tax Increment District Marketplace & Main 208,765 D. NET ASSETS RESTRICTED BY ENABLING LEGISLATION The government-wide statement of net position reports $2,057,928 in restricted net position for economic development, of which $1,614,057 is restricted by enabling legislation. 56 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 4. DEPOSITS AND INVESTMENTS As of December 31, 2012 the City had the following deposits and investments: Investment Type Fair Value Government securities $ 248,378 Municipal obligations 4,841,645 Negotiable certificates of deposit 5,162,098 Money market 11,270,492 Deposits 530,122 Total fair value $ 22,052,735 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 City of Hopkins Legislative Policy 6-B, Standards of Investments, the city manages its exposure to declines in fair values by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. At December 31, 2012 the City had the following investment maturities: Investment Maturities (in Years) Fair Less No Value than One 1-5 10-15 Maturity Investment Type: Government securities FNMA $ 248,378 $ - $ - $ 248,378 $ - Municipal obligations 4,841,645 2,063,078 2,269,830 148,737 - Negotiable certificates of deposit 5,162,098 3,929,854 1,232,244 - - Money market 11,270,492 - - - 11,270,492 Demand deposits 530,122 - - - 530,122 $ 22,052,735 $ 5,992,932 $ 3,502,074 $ 397,115 $ 11,800,614 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 (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. 57 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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, 2012. QualityRatings Fair FDIC Value AAA AA Insured Investment Type: Government securities FNMA $ 248,378 $ 248,378 $ - $ - Municipal obligations 4,841,645 1,009,203 3,832,442 - Negotiable certificates of deposit 5,162,098 - - 5,162,098 Money market 11,270,492 - - 11,270,492 Demand deposits 530,122 - - 530,122 $ 22,052,735 $ 1,257,581 $ 3,832,442 $ 16,962,712 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, 2012 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% 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, 2012, the city had no investments exceeding 5% or more for a single issuer. Restricted Cash – Restricted cash totals $1,503,975 all of which is held in escrow for the payment of Tax Increment Bonds of 2002A which will be called February 2013. 58 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 5. CAPITAL ASSETS Capital asset activities for the year ended December 31, 2012 were as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated Land $ 5,805,711 $ - $ - $ - $ 5,805,711 Construction in progress 2,431,303 2,094,459 (8,918) (2,702,272) 1,814,572 Total not being depreciated 8,237,014 2,094,459 (8,918) (2,702,272) 7,620,283 Capital assets, being depreciated Buildings 19,792,972 - - 249,308 20,042,280 Other Improvements 33,561,631 312,830 - 2,452,964 36,327,425 Vehicles 3,854,683 180,641 (560,543) - 3,474,781 Machinery & equipment 4,946,656 463,348 (8,841) - 5,401,163 Total being depreciated 62,155,942 956,819 (569,384) 2,702,272 65,245,649 Less accumulated depreciation Buildings (4,722,337) (482,244) - - (5,204,581) Other Improvements (13,482,948) (859,301) - - (14,342,249) Vehicles (2,084,811) (231,291) 457,462 - (1,858,640) Machinery & equipment (3,663,316) (278,590) 6,238 - (3,935,668) Total accumulated depreciation (23,953,412) (1,851,426) 463,700 - (25,341,138) Total capital assets, being depreciated, net 38,202,530 (894,607) (105,684) 2,702,272 39,904,511 Governmental activities capital assets, net $ 46,439,544 $ 1,199,852 $ (114,602) $ - $ 47,524,794 (remainder of page left blank intentionally) 59 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 Beginning Ending Balance Increases Decreases Transfers Balance Business-type Activities: Capital assets, not being depreciated Land $ 228,463 $ - $ - $ - $ 228,463 Construction in progress 1,032,644 626,017 - (1,080,455) 578,206 Total not being depreciated 1,261,107 626,017 - (1,080,455) 806,669 Capital assets, being depreciated Buildings 7,723,171 23,855 - 66,863 7,813,889 Infrastructure 19,095,763 54,700 - - 19,150,463 Other Improvements 8,097,605 236,150 - 1,013,592 9,347,347 Vehicles 788,447 - (34,340) - 754,107 Machinery & equipment 755,517 85,699 - - 841,216 Total being depreciated 36,460,503 400,404 (34,340) 1,080,455 37,907,022 Less accumulated depreciation Buildings (3,949,547) (220,698) - (4,170,245) Infrastructure (10,667,611) (387,417) - (11,055,028) Other Improvements (1,232,694) (179,838) - (1,412,532) Vehicles (343,528) (61,296) 34,340 - (370,484) Machinery & equipment (609,763) (34,915) - (644,678) Total accumulated depreciation (16,803,143) (884,164) 34,340 - (17,652,967) Total capital assets, being depreciated, net 19,657,360 (483,760) - 1,080,455 20,254,055 Business-type activities capital assets, net $ 20,918,467 $ 142,257 $ - $ - $ 21,060,724 Depreciation expense was charged to City functions as follows: Governmental activities: General government $ 49,951 Public safety 227,704 Highways and streets 1,007,961 Urban redevelopment and housing 614 Culture and recreation 133,174 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 432,022 Total depreciation expense - governmental activities $ 1,851,426 Business-type activities: Water $ 223,867 Sewer 164,931 Storm Sewer 215,432 Refuse 55,094 Pavilion/Ice arena 69,390 Housing and Redevelopment Authority 155,450 Total depreciation expense - business-type activities $ 884,164 Construction commitments The City has active construction projects as of December 31, 2012. The projects include street improvements. The City’s commitment with contractors related to these projects is $40,859. 60 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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, 2012: Due from Other Funds Economic General Development Total Due to other funds: Non-major governmental $ 397,064 $ 686,050 $ 1,083,114 Arts Center 783,184 300,000 1,083,184 Non-major proprietary 34,536 - 34,536 Total due to other funds $ 1,214,784 $ 986,050 $ 2,200,834 Advances from other funds Internal Service Total Advanced to other funds: Pavilion/Ice Arena $ 21,820 $ 21,820 Total advances to other funds $ 21,820 $ 21,820 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, 2012: Transfers in Permananent Art Improvement Non-major Internal Center Revolving Governmental Service Total Transfers out: General $ - $ - $ 10,000 $ - $ 10,000 Economic Development 61,000 - - - 61,000 Tax Increment District 2.11 - - 212,315 - 212,315 Permanent Improvement Revolving - - 286,711 - 286,711 Storm Sewer - - 120,000 - 120,000 Non-major governmental 86,920 3,297,573 688,660 346,274 4,419,427 Non-major business-type - 25,000 - 25,000 Total transfers out $ 147,920 $ 3,297,573 $ 1,342,686 $ 346,274 $ 5,134,453 Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general obligation debt. 61 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 Non-routine transfers include the following: 6)Annual transfers from storm sewer and refuse funds for lease payments on new public works facility. 7)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. 8)Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments. 9)Transfers from non-major governmental funds to Permanent Improvement Revolving and Internal Service Fund for bond proceeds. 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 (181,271) Total $ 689,156 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2012 are as follows: Governmental Year Ending December 31, Activities 2013 $ 54,217 2014 54,217 2015 54,217 2016 54,217 2017 54,217 2018 54,217 Total minimum lease payments 325,302 Less: amount represting interest (46,219) Present value of minimum lease payments $ 279,083 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. On September 13, 2012 the City issued $1,905,000 series 2012A General Obligation Capital Improvement Bonds for the purpose of refunding the 2003 HRA Lease Revenue Bonds and $795,000 series 2012B General Obligation Equipment Certificates for purposes of purchasing a fire truck and public works vehicles. 62 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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: Interest Rates Original Amount Current Amount Purpose Governmental activities 0.35 – 5.00%$15,070,000 $11,785,000 Governmental activities – refunding 0.50 – 5.15% 6,275,000 5,160,000 Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending Governmental Activities December 31 Principal Interest 2013 $ 2,790,000 $ 543,885 2014 1,415,000 471,592 2015 1,450,000 427,143 2016 1,525,000 378,359 2017 1,455,000 327,682 2018-2022 7,105,000 857,611 2023-2027 1,205,000 22,614 $ 16,945,000 $ 3,028,886 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 September 13, 2012 the City issued $3,285,000 General Obligation Bonds, Series 2012B for the 2012 street improvement project. General obligation bonds currently outstanding are as follows: Purpose Interest RatesOriginal Amount Current Amount Street Improvements 0.50 – 4.25%$7,950,000 $7,130,000 Street Improvements – refunding 0.50 – 0.700%220,000100,000 Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending Governmental Activities December 31 Principal Interest 2013 $ 475,000 $ 165,881 2014 555,000 161,434 2015 570,000 147,034 2016 585,000 131,777 2017 600,000 115,634 2018-2022 2,235,000 386,236 2023-2027 1,960,000 138,392 2028 250,000 2,750 $ 7,230,000 $ 1,249,138 63 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 Revenue Bonds The City also issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. On September 13, 2012 the City issued $1,250,000 General Obligation Bonds, Series 2012B for the water ($760,000), sewer ($170,000) and storm sewer ($320,000) portion of the 2012 street improvement project along with $175,000 in equipment certificates for the Pavilion ice machine. Revenue bonds outstanding at year-end are as follows: Purpose Interest Rates Original Amount Current Amount Water refunding 2.0 – 4.0% $ 850,000 $ 525,000 Water construction & replacement 2.0 – 4.0% 820,000 735,000 Water construction & replacement 2.0 – 2.2% 760,000 760,000 Sanitary sewer construction & replacement 2.0 – 4.0% 1,020,000 910,000 Sanitary sewer construction & replacement 2.0 – 2.2% 170,000 170,000 Storm sewer – refunding 2.0 – 4.0% 605,000 370,000 Storm sewer – refunding 0.5 – 2.9% 875,000 815,000 Storm sewer construction & replacement 2.0 – 2.2% 320,000 320,000 Pavilion equipment certificates 2.0 – 2.0% 175,000 175,000 Revenue bond debt service requirements to maturity are as follows: Year Ending December 31 Principal Interest 2013 $ 535,000 $ 117,083 2014 555,000 109,281 2015 575,000 95,469 2016 280,000 84,706 2017 280,000 77,931 2018-2022 1,510,000 268,913 2023-2027 950,000 61,017 2028 95,000 1,045 $ 4,780,000 $ 815,445 The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At December 31, 2012, the debt limit for the City is $42,188,769. Of the total debt, $10,180,000 of general obligation and revenue bonds is applicable to the limit. The legal debt margin is $32,786,837. 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, 2012, $7,265,000 remained outstanding. On September 13, 2012 the City issued $1,905,000 in General Obligation Capital Improvement Bonds, Series 2012A for the purpose of refunding the $3,050,000 HRA Lease Revenue Bonds, Series 2003. Future debt service payments will be reduced by $214,280 with a present value savings of $206,557. As of December 31, 2012, $1,905,000 remained outstanding. 64 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 Changes in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2012, was as follows: Beginning Ending Due Within Balance Additions Deductions Balance One Year Governmental Activities: Bonds payable: G.O. tax increment bonds $ 7,300,000 $ -$ 535,000 $ 6,765,000 $ 2,045,000 General obligation bonds 8,005,000 2,700,000 525,000 10,180,000 745,000 Total general obligation bonds 15,305,000 2,700,000 1,060,000 16,945,000 2,790,000 Special assessment bonds 4,385,000 3,285,000 440,000 7,230,000 475,000 Public facility lease bonds 2,185,000 - 2,185,000 - - Less deferred amounts For issuance discounts (129,194) (12,830) 39,463 (102,561) - For issuance premiums 4,646 65,704 (2,065) 68,285 - On refunding (16,632) - 2,506 (14,126) - Total bonds payable 21,733,820 6,037,874 3,724,904 24,126,598 3,265,000 Compensated absences 772,783 747,418 721,147 799,054 721,147 Net OPEB liability 126,189 167,857 126,244 167,802 - Capital lease payable 318,241 - 39,158 279,083 41,093 Governmental activity long-term liabilities $ 22,951,033 $ 6,953,149 $ 4,611,453 $ 25,372,537 $ 4,027,240 Business-type activities: Bonds payable: Revenue bonds $ 3,805,000 $ 1,425,000 $ 450,000 $ 4,780,000 $ 535,000 Less deferred amounts For issuance discounts (7,944) - 717 (7,227) - For issuance premiums 46,127 22,948 (8,888) 60,187 - Compensated absences 138,353 136,638 109,805 165,186 108,079 Net OPEB liability 26,783 31,285 26,792 31,276 - Business-type activity long-term liabilities $ 4,008,319 $ 1,615,871 $ 578,426 $ 5,029,422 $ 643,079 For the governmental activities, compensated absences and the net OPEB liability are generally liquidated by the general and special revenue funds. (remainder of page is left blank intentionally) 65 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 10. FUND BALANCES At December 31, 2012, the City had various fund balances through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2012 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: Total Nonspendable Restricted Committed Assigned Unassigned General Fund $ 4,488,876 $ - $ - $ - $ - $ 4,488,876 Inventories 104,059 104,059 - - - - Prepaid items 92,441 92,441 - - - - Community development 508,767 - - - 508,767 - Total General Fund 5,194,143 196,500 - - 508,767 4,488,876 Economic Development Long term receivable 986,050 986,050 - - - - Property held for resale 697,098 697,098 - - - - Economic Development 1,997,915 - - 1,997,915 - - Total Economic Development Fund 3,681,063 1,683,148 - 1,997,915 - - Tax Increment District 2-11 Tax Increment 1,169,639 - 1,169,639 - - - Arts Center Prepaid items 132 132 - - - - Deficit Fund Balance (1,109,731) - - - - (1,109,731) Total Arts Center Fund (1,109,599) 132 - - - (1,109,731) Housing Improvement Bonds of 1999A Refundinh Bonds of 2009B Debt service 286,570 - 286,570 - - - Housing Improvement Bonds of 1999B Refunding Bonds of 2009B Debt service 545,381 - 545,381 - - - Permanent Improvement Revolving Capital asset replacement 2,389,702 - - - 2,389,702 - Nonmajor Governmental Funds Prepaid items 963 963 - - - - Rehab loans 28,098 28,098 - - - - Long term receivable 6,000 6,000 - - - - Debt service 3,786,187 - 3,786,187 - - - Public safety 2,947 - 2,947 - - - Tax increment 444,418 - 444,418 - - - Park improvements 76,901 - 76,901 - - - Economic development 116,041 - - 116,041 - - Parking improvements 176,721 - - 176,721 - - Communications 380,349 - - 380,349 - - Depot youth project 8,363 - - 8,363 - - Capital asset replacement 2,396,015 - - - 2,396,015 - Deficit fund balance (981,057) - - - - (981,057) Total Nonmajor Funds 6,441,946 35,061 4,310,453 681,474 2,396,015 (981,057) Total Fund Balances $ 18,598,845 $ 1,914,841 $ 6,312,043 $ 2,679,389 $ 5,294,484 $ 2,398,088 66 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS December 31, 2012 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. 67 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 2012. 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, 2012, 2011 and 2010 were $341,474, $343,546, and $328,513, respectively. The City’s contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2012, 2011 and 2010 were $317,772, $311,058, and $299,165, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by state statute. The City's pension obligation is funded by the General, Special Revenue and Enterprise Funds. 2. Hopkins Fire Relief Association (HFRA) A. 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. B. 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: 2012 Contributions: City $ 32,166 State $ 67,169 Actuarial valuation date: 12/31/11 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 7% Projected salary increases N/A Inflation rate N/A Cost of living adjustments None 68 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 Annual Pension Benefit Cost for Past Three Years (the most current available) Annual Pension % of Annual Pension Net Pension Obligation Year Ended Cost (APC) Cost Contributed At Year Ended 12/31/2011 $ 100,105 100% $ 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) Actuarial Actuarial Actuarial Accrued Excess (Under) Funded Valuation Value of Liability (AAL) Of Assets Ratio Date Assets Entry Age Over AAL (a/b) 12/31/2011 $ 1,935,986 $ 1,791,803 $ 144,183 108 % 12/31/2010 $ 1,913,421 $ 1,636,772 $ 276,649 117 % 12/31/2011 $ 1,816,577 $ 2,190,083 $ (373,506) 83 % The estimated accrued liability of $1,791,803 at December 31, 2011 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 $144,183 as of December 31, 2011. 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. Currently19 employees meet those eligibility requirements. As of December 31, 2012 there were approximately 83 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 2012, the City contributed $153,036 to the plan. The City's OPEB pension obligation is funded by the General and Enterprise Funds. 69 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 6,884 Adjustment to Annual Required Contribution (9,535) Annual OPEB Cost (Expense) 199,142 Contributions Made (153,036) Increase in Net OPEB Obligation 46,106 Net OPEB Obligation - Beginning of Year 152,972 Net OPEB Obligation - End of Year $ 199,078 The City’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012: Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Contributed Obligation 12/31/2009 235,557 79.2 % 131,847 12/31/2010 199,721 102.0 % 127,854 12/31/2011 199,657 76.8 % 152,972 12/31/2012 199,142 76.8 % 199,078 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 70 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 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 $28,098 at December 31, 2012 and are recorded in the 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. 16. ACCOUNTING CHANGE During fiscal year 2012, the City implemented several new accounting pronouncements issued by the Government Accounting Standard Board (GASB), including Statement No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position" and Statement No. 65 "Items Previously Reported as Assets and Liabilities". Changes related to these standards are reflected in the financial statements and schedules and related disclosures. 71 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2012 17. SUBSEQUENT EVENT On April 25, 2013, the government issued $3,650,000 general obligation bonds to fund the 2013 street improvement project. The interest rate on the bonds is 2.0-2.5% and the maturity date is February 1, 2029 72 REQUIRED SUPPLEMENTARY INFORMATION 73 City of Hopkins, Minnesota REQUIRED SUPPLEMNTARY INFORMATION Schedule of Funding Progress December 31, 2012 OTHER POSTEMPLOYMENT BENEFITS PLAN Actuarial UAAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) 01/01/07 $ - $ 2,297,909 $ 2,297,909 -$ 5,621,587 40.88 % 01/01/10 - 2,145,617 2,145,617 - 6,244,081 34.36 % 74 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. Parking Fund - This fund acquired land, improves and maintains parking lots and a parking ramp and collects monthly maintenance fees from users. 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. 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. th th 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. 75 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. Municipal State Aid Fund - This fund is used to account for the City's allocation of the state collected highway user tax. The allocation is based on population and need for construction of designated state aid streets in the City. Street Improvement Franchise Fees Fund - This fund accounts for funds set aside for street improvements from the 2012 increase in gas and electric franchise fees. Funds will be used to decrease the annual debt levy for street improvement bonds. 76 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Special Revenue Funds StateReal Estate Hennepin Chemical Purchases E-911County Assessment & Sales Service Fee CDBG Parking Assets Cash and cash equivalents $ -$ 115,879$ - $ -$ 214,745 Taxesreceivable --- -- Accounts receivable --- -- Rehabilitation loans receivable --- 28,098- Due from other governments 33,014-- -1,677 Interestreceivable -162- -303 Prepaiditems --- -- Total Assets $ 33,014$ 116,041$ - $ 28,098$ 216,725 Liabilities and Fund Balances Liabilities: Accounts payable $ 4,155$ -$ - $ -$ 1,482 Salaries payable 1,912-- -1,617 Accrued interest payable --- -- Due to other funds 24,000-- -- Due to other governments --- -- Deferredrevenue --- -36,905 Total Liabilities 30,067-- -40,004 Fund balances: Non-spendable --- 28,098- Restricted2,947-- -- Committed -116,041- -176,721 Unassigned --- -- Total Fund Balances 2,947116,041- 28,098176,721 Total Liabilities and Fund Balances $ 33,014$ 116,041$ - $ 28,098$ 216,725 77 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Special Revenue Funds Tax IncrementTax Tax DepotDistrict IncrementIncrement Coffee EntertainmentDistrict District CommunicationsHouse District R.L. Johnson Sonoma Assets Cash and cash equivalents $ 320,412$ 22,807$ 76,345 $ -$ 1,233 Taxesreceivable --- -- Accounts receivable 63,319413- -- Rehabilitation loans receivable --- -- Due from other governments --- -- Interest receivable 45131108 -31 Prepaid items 831132- -- Total Assets $ 385,013$ 23,383$ 76,453 $ -$ 1,264 Liabilities and Fund Balances Liabilities: Accounts payable $ 2,628$ 6,454$ 40 $ -$ 4 Salaries payable 1,2057,544- -- Accrued interest payable --- -- Due to other funds --233,691 -242,359 Due to other governments -890- -- Deferred revenue --- -- Total Liabilities 3,83314,888233,731 -242,363 Fund balances: Non-spendable 831132- -- Restricted --- -- Committed380,3498,363- -- Unassigned --(157,278) -(241,099) Total Fund Balances 381,1808,495(157,278) -(241,099) Total Liabilities and Fund Balances $ 385,013$ 23,383$ 76,453 $ -$ 1,264 78 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Special Revenue Funds Tax Tax IncrementIncrement District District Oaks of Marketplace Mainstreet 5th Ave Flats & Main Total Assets Cash and cash equivalents $ 443,509$ -$ - $ 1,194,930 Taxesreceivable 704-- 704 Accounts receivable --1,267 64,999 Rehabilitation loans receivable --- 28,098 Due from other governments --- 34,691 Interest receivable 626-1 1,713 Prepaid items --- 963 Total Assets $ 444,839$ -$ 1,268 $ 1,326,098 Liabilities and Fund Balances Liabilities: Accounts payable $ 421$ 351$ 7 $ 15,542 Salaries payable --- 12,278 Accrued interest payable -526- 526 Due to other funds -373,038210,026 1,083,114 Due to other governments --- 890 Deferred revenue --- 36,905 Total Liabilities 421373,915210,033 1,149,255 Fund balances: Non-spendable --- 29,061 Restricted 444,418-- 447,365 Committed--- 681,474 Unassigned -(373,915)(208,765) (981,057) Total Fund Balances 444,418(373,915)(208,765) 176,843 Total Liabilities and Fund Balances $ 444,839$ -$ 1,268 $ 1,326,098 79 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Debt Service Funds Tax IncrementTaxable Tax TaxHRA Lease Bonds of 1996C Increment Bonds HousingIncrementRevenue Refunding of 1997 Bonds ofBonds ofBonds ofBonds ofRefunding Bonds 1995 2002 2003 2005Aof 2005B Assets Cash and cash equivalents $ 137,296$ 120,670$ -$ 161,318$ 406,634 Taxes receivable----- Special assessments receivable 1,273---886,309 Interest receivable 193170-227573 Cash - temporarily restricted -1,503,975--- Total Assets $ 138,762$ 1,624,815$ -$ 161,545$ 1,293,516 Liabilities and Fund Balances Liabilities: Accounts payable $ 133$ 151$ -$ 147$ 374 Total Liabilities 133151-147374 Deferred Inflows of Resources: Taxes and special assessments 1,273---883,030 Total Deferred Inflows of Resources 1,273---883,030 Fund balances: Restricted137,3561,624,664-161,398410,112 Total Fund Balances 137,3561,624,664-161,398410,112 Total Liabilities and Fund Balances $ 138,762$ 1,624,815$ -$ 161,545$ 1,293,516 80 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Debt Service Funds ImprovementTax Bonds ofIncrement Capital ImprovementImprovement2002Bonds of 2002 ImprovementRevolvingRevolvingRefunding Refunding Bonds ofBonds ofBonds ofBonds ofBonds of 2007A2007B2010A2010B2010B Assets Cash and cash equivalents $ 311,198$ 211,789$ 211,033$ 118,732$ 59,483 Taxes receivable 15,3973,7051,4461,227- Special assessments receivable ----- Interest receivable 43929929816784 Cash - temporarily restricted ----- Total Assets $ 327,034$ 215,793$ 212,777$ 120,126$ 59,567 Liabilities and Fund Balances Liabilities: Accounts payable $ 271$ 198$ -$ -$ - Total Liabilities 271198--- Deferred Inflows of Resources: Taxes and special assessments 11,1012,6711,027891- Total Deferred Inflows of Resources 11,1012,6711,027891- Fund balances: Restricted315,662212,924211,750119,23559,567 Total Fund Balances 315,662212,924211,750119,23559,567 Total Liabilities and Fund Balances $ 327,034$ 215,793$ 212,777$ 120,126$ 59,567 81 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Debt Service Funds Capital Equipment ImprovementCertificates of Improvement Bonds of 2012A2012BBonds of 2012BTotal Assets Cash and cash equivalents $ 69,771$ 453,680$ 8,079$ 2,269,683 Taxes receivable 4,479--26,254 Special assessments receivable ---887,582 Interest receivable 10063993,198 Cash - temporarily restricted ---1,503,975 Total Assets $ 74,350$ 454,319$ 8,088$ 4,690,692 Liabilities and Fund Balances Liabilities: Accounts payable $ -$ -$ -$ 1,274 Total Liabilities ---1,274 Deferred Inflows of Resources: Taxes and special assessments 3,238--903,231 Total Deferred Inflows of Resources 3,238--903,231 Fund balances: Restricted71,112454,3198,0883,786,187 Total Fund Balances 71,112454,3198,0883,786,187 Total Liabilities and Fund Balances $ 74,350$ 454,319$ 8,088$ 4,690,692 82 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Capital Project Funds Capital Street ParkImprovementMunicipal State Improvement ImprovementsFunds Aid Fund Franchise Fees Total Assets Cash and cash equivalents $ 76,858$ 136,446$ 2,062,940 $ 145,388$ 2,421,632 Taxes receivable 3792,069- -2,448 Accounts receivable --- 50,58850,588 Interestreceivable 1081912,905 2053,409 Long-term receivable 6,000-- -6,000 Total Assets $ 83,345$ 138,706$ 2,065,845 $ 196,181$ 2,484,077 Liabilities and Fund Balances Liabilities: Accounts payable $ 113$ 1,389$ 1,697 $ -$ 3,199 Total Liabilities 1131,3891,697 -3,199 Deferred Inflows of Resources Taxes and special assessments 3311,631- -1,962 Total Deferred Inflows of Resources 3311,631- -1,962 Fund balances: Non-spendable 6,000-- -6,000 Restricted76,901-- -76,901 Assigned -135,6862,064,148 196,1812,396,015 Total Fund Balances 82,901135,6862,064,148 196,1812,478,916 Total Liabilities and Fund Balances $ 83,345$ 138,706$ 2,065,845 $ 196,181$ 2,484,077 83 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2012 Total Non-major Governmental Special RevenueDebt Service Capital Projects Funds Assets Cash and cash equivalents $ 1,194,930$ 2,269,683$ 2,421,632 $ 5,886,245 Taxes receivable 70426,2542,448 29,406 Special assessments receivable -887,582- 887,582 Accounts receivable 64,999-50,588 115,587 Rehabilitation loans receivable 28,098-- 28,098 Due from other governments 34,691-- 34,691 Interest receivable 1,7133,1983,409 8,320 Prepaid items 963-- 963 Long-term receivable --6,000 6,000 Cash - temporarily restricted -1,503,975- 1,503,975 Total Assets $ 1,326,098$ 4,690,692$ 2,484,077 $ 8,500,867 Liabilities and Fund Balances Liabilities: Accounts payable $ 15,542$ 1,274$ 3,199 $ 20,015 Salaries payable 12,278-- 12,278 Accrued interest payable 526-- 526 Due to other funds 1,083,114-- 1,083,114 Due to other governments 890-- 890 Deferred revenue 36,905-- 36,905 Total Liabilities 1,149,2551,2743,199 1,153,728 Deferred Inflows of Resources Taxes and special assessments -903,2311,962 905,193 Total Deferred Inflows of Resources -903,2311,962 905,193 Fund balances: Non-spendable 29,061-6,000 35,061 Restricted447,3653,786,18776,901 4,310,453 Committed681,474--681,474 Assigned --2,396,015 2,396,015 Unassigned (981,057)-- (981,057) Total Fund Balances 176,8433,786,1872,478,916 6,441,946 Total Liabilities and Fund Balances $ 1,326,098$ 4,690,692$ 2,484,077 $ 8,500,867 84 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2012 Special Revenue Funds StateReal Estate Hennepin ChemicalPurchasesE-911County Assessment& Sales Service Fee CDBG Parking Revenues Tax increments $ -$ -$ - $ -$ - Intergovernmental 73,629-17,969 13,574- Charges for services -3,700- -74,884 Fines --- -22,420 Investmentearnings -83541 -1,219 Other miscellaneous revenues 9,429-- -- Total Revenues 83,0584,53518,010 13,57498,523 Expenditures Current: Generalgovernment --- -- Public safety 78,763-18,060 -58,585 Highways and streets --- -34,269 Urban redevelopment and housing --- 11,482- Culture and recreation --- -- Debt service: Interest and fiscal fees --- -- Capital Outlay --- -- Total Expenditures 78,763-18,060 11,48292,854 Excess (deficiency) of revenues over expenditures 4,2954,535(50) 2,0925,669 Other Financing Sources (Uses) Transferin --- -- Transferout --- -- Total Other Financing Sources (Uses) --- -- Net change in fund balances 4,2954,535(50) 2,0925,669 Fund Balance (Deficit) - January 1 (1,348)111,50650 26,006171,052 Fund Balance (Deficit) - December 31 $ 2,947$ 116,041$ - $ 28,098$ 176,721 85 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2012 Special Revenue Funds Tax IncrementTaxTax DepotDistrict IncrementIncrement Coffee EntertainmentDistrict District CommunicationsHouse District R.L. Johnson Sonoma Revenues Tax increments $ -$ -$ 58,172 $ -$ 9,384 Intergovernmental -6,000- -- Charges for services -72,055- -- Fines --- -- Investment earnings 2,214123293 5393 Other miscellaneous revenues 231,472192,181- -9,640 Total Revenues 233,686270,35958,465 5319,117 Expenditures Current: General government 114,773-- -- Publicsafety --- -- Highways and streets --- -- Urban redevelopment and housing --3,110 -2,521 Culture and recreation -282,540- -- Debt service: Interest and fiscal fees --11,987 -9,355 Capital Outlay 52,2363,637- -- Total Expenditures 167,009286,17715,097 -11,876 Excess (deficiency) of revenues over expenditures 66,677(15,818)43,368 537,241 Other Financing Sources (Uses) Transferin -10,000- -24,315 Transfer out (86,920)-- (201,625)- Total Other Financing Sources (Uses) (86,920)10,000- (201,625)24,315 Net change in fund balances (20,243)(5,818)43,368 (201,572)31,556 Fund Balance (Deficit) - January 1 401,42314,313(200,646) 201,572(272,655) Fund Balance (Deficit) - December 31 $ 381,180$ 8,495$ (157,278) $ -$ (241,099) 86 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2012 Special Revenue Funds Tax Increment Tax Increment District District Oaks of Marketplace & Mainstreet 5th Ave Flats Main Total Revenues Tax increments $ 133,034$ -$ - $ 200,590 Intergovernmental 192-- 111,364 Charges for services --- 150,639 Fines--- 22,420 Investment earnings 2,501-- 7,372 Other miscellaneous revenues --1,386 444,108 Total Revenues 135,727-1,386 936,493 Expenditures Current: General government --- 114,773 Public safety --- 155,408 Highways and streets --- 34,269 Urban redevelopment and housing 4,8413,646405,259 430,859 Culture and recreation --- 282,540 Debt service: Interest and fiscal fees -1,964620 23,926 Capital Outlay --- 55,873 Total Expenditures 4,8415,610405,879 1,097,648 Excess (deficiency) of revenues over expenditures 130,886(5,610)(404,493) (161,155) Other Financing Sources (Uses) Transfer in --201,625 235,940 Transfer out (118,000)-- (406,545) Total Other Financing Sources (Uses) (118,000)-201,625 (170,605) Net change in fund balances 12,886(5,610)(202,868) (331,760) Fund Balance (Deficit) - January 1 431,532(368,305)(5,897) 508,603 Fund Balance (Deficit) - December 31 $ 444,418$ (373,915)$ (208,765) $ 176,843 87 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2012 Debt Service Funds Tax IncrementTaxable Tax TaxHRA Lease Bonds of 1996C Increment Bonds HousingIncrementRevenue Refunding of 1997 Bonds ofBonds ofBonds ofBonds ofRefunding Bonds 1995 2002 2003 2005Aof 2005B Revenues Property taxes $ -$ -$ 215,806 $ -$ - Special assessments 1,167-- -172,293 Investmentearnings 7845,250- 2371,451 Other miscellaneous revenues --10,500 -- Total Revenues 1,9515,250226,306 237173,744 Expenditures Current: General government 1,1601511,760 1471,096 Debt Service: Principal retirement -110,000135,000 90,000105,000 Interest and fiscal fees -109,65883,601 16,86840,815 Total Expenditures 1,160219,809220,361 107,015146,911 Excess (deficiency) of revenues over expenditures 791(214,559)5,945 (106,778)26,833 Other Financing Sources (Uses) Improvement bonds issued --- -- Discount on improvement bonds --- -- Premium on improvement bonds --- -- Payment to refunded bond escrow agent --- -- Transfer in -153,000- 118,000- Transferout --(369,035) -- Total Other Financing Sources (Uses) -153,000(369,035) 118,000- Net change in fund balances 791(61,559)(363,090) 11,22226,833 Fund Balance (Deficit) - January 1 136,5651,686,223363,090 150,176383,279 Fund Balance (Deficit) - December 31 $ 137,356$ 1,624,664$ - $ 161,398$ 410,112 88 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2012 Debt Service Funds Tax Improvement Increment Capital ImprovementImprovementBonds of 2002 Bonds of 2002 ImprovementRevolvingRevolvingRefunding Refunding Bonds ofBonds of Bonds of Bonds of Bonds of 2007A2007B 2010A 2010B 2010B Revenues Property taxes $ 755,714$ 182,059$ 76,000 $ 58,193$ - Specialassessments --- -- Investmentearnings --- -237 Other miscellaneous revenues --- -- Total Revenues 755,714182,05976,000 58,193237 Expenditures Current: General government 5,7995,198- -- Debt Service: Principal retirement 525,000180,000140,000 120,000- Interest and fiscal fees 332,17958,79658,225 1,158265 Total Expenditures 862,978243,994198,225 121,158265 Excess (deficiency) of revenues over expenditures (107,264)(61,935)(122,225) (62,965)(28) Other Financing Sources (Uses) Improvement bonds issued --- -- Discount on improvement bonds --- -- Premium on improvement bonds --- -- Payment to refunded bond escrow agent --- -- Transfer in 145,00071,900156,592 58,21935,000 Transferout --- -- Total Other Financing Sources (Uses) 145,00071,900156,592 58,21935,000 Net change in fund balances 37,7369,96534,367 (4,746)34,972 Fund Balance (Deficit) - January 1 277,926202,959177,383 123,98124,595 Fund Balance (Deficit) - December 31 $ 315,662$ 212,924$ 211,750 $ 119,235$ 59,567 89 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2012 Debt Service Funds Capital Equipment ImprovementCertificates of Improvement Bonds of 2012A2012BBonds of 2012BTotal Revenues Property taxes $ 1,241$ -$ - $ 1,289,013 Special assessments --- 173,460 Investment earnings 952,5508,088 18,692 Other miscellaneous revenues --- 10,500 Total Revenues 1,3362,5508,088 1,491,665 Expenditures Current: General government 31,6389,76040,329 97,038 Debt Service: Principal retirement --- 1,405,000 Interest and fiscal fees --- 701,565 Total Expenditures 31,6389,76040,329 2,203,603 Excess (deficiency) of revenues over expenditures (30,302)(7,210)(32,241) (711,938) Other Financing Sources (Uses) Improvement bonds issued 1,905,000795,0003,285,000 5,985,000 Discount on improvement bonds (12,830)-- (12,830) Premium on improvement bonds -12,80352,902 65,705 Payment to refunded bond escrow agent (2,159,791)-- (2,159,791) Transfer in 369,035-- 1,106,746 Transfer out -(346,274)(3,297,573) (4,012,882) Total Other Financing Sources (Uses) 101,414461,52940,329 971,948 Net change in fund balances 71,112454,3198,088 260,010 Fund Balance (Deficit) - January 1 --- 3,526,177 Fund Balance (Deficit) - December 31 $ 71,112$ 454,319$ 8,088 $ 3,786,187 90 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2012 Capital Projects Funds Capital Street ParkImprovementMunicipal State Improvement ImprovementsFund Aid Fund Franchise Fees Total Revenues Property taxes $ -$ 123,397$ - $ -$ 123,397 Intergovernmental30,000-411,244 -441,244 Investmentearnings 69991613,795 56615,976 Other miscellaneous revenues 214,772-- 195,615410,387 Total Revenues 245,471124,313425,039 196,181991,004 Expenditures Current: Highways and streets --11,503 -11,503 Capital Outlay 274,764261,09815,720 -551,582 Total Expenditures 274,764261,09827,223 -563,085 Excess (deficiency) of revenues over expenditures (29,293)(136,785)397,816 196,181427,919 Fund Balance (Deficit) - January 1 112,194272,4711,666,332 -2,050,997 Fund Balance (Deficit) - December 31 $ 82,901$ 135,686$ 2,064,148 $ 196,181$ 2,478,916 91 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2012 Total Nonmajor Special Revenue Debt Service Capital Projects Governmental Funds Revenues Property taxes $ - $ 1,289,013 $ 123,397 $ 1,412,410 Tax increments 200,590 - - 200,590 Special assessments - 173,460 - 173,460 Intergovernmental 111,364 - 441,244 552,608 Charges for services 150,639 - - 150,639 Fines 22,420 - - 22,420 Investment earnings 7,372 18,692 15,976 42,040 Other miscellaneous revenues 444,108 10,500 410,387 864,995 Total Revenues 936,493 1,491,665 991,004 3,419,162 Expenditures Current: General government 114,773 97,038 - 211,811 Publicsafety 155,408 - - 155,408 Highways and streets 34,269 - 11,503 45,772 Urban redevelopment and housing 430,859 - - 430,859 Culture and recreation 282,540 - - 282,540 Debt service: Principal retirement - 1,405,000 - 1,405,000 Interest and fiscal fees 23,926 701,565 - 725,491 Capital Outlay 55,873 - 551,582 607,455 Total Expenditures 1,097,648 2,203,603 563,085 3,864,336 Excess (deficiency) of revenues over expenditures (161,155)(711,938)427,919 (445,174) Other Financing Sources (Uses) Improvement bonds issued - 5,985,000 - 5,985,000 Discount on improvement bonds - (12,830)- (12,830) Premium on improvement bonds - 65,705 - 65,705 Payment to refunded bond escrow agent - (2,159,791)- (2,159,791) Transfer in 235,940 1,106,746 - 1,342,686 Transfer out (406,545)(4,012,882)- (4,419,427) Total Other Financing Sources (Uses) (170,605)971,948 - 801,343 Net change in fund balances (331,760)260,010 427,919 356,169 Fund Balance (Deficit) - January 31 508,603 3,526,177 2,050,997 6,085,777 Fund Balance (Deficit) - December 31 $ 176,843 $ 3,786,187 $ 2,478,916 $ 6,441,946 92 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds State Chemical Assessment For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Intergovernmental$ 45,000$ 45,000$ 73,629 $ 28,629 Other miscellaneous revenues --9,429 9,429 Total Revenues 45,00045,00083,058 38,058 Expenditures Current: Public safety 45,00045,00078,763 (33,763) Total expenditures 45,00045,00078,763 (33,763) Net change in fund balance --4,295 4,295 Fund balance - January 1 (1,348)(1,348)(1,348) - Fund balance - December 31 $ (1,348)$ (1,348)$ 2,947 $ 4,295 93 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Real Estate Purchases & Sales For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Charges for services $ 3,700$ 3,700$ 3,700 $ - Investment earnings 2,1002,100835 (1,265) Total Revenues 5,8005,8004,535 (1,265) Net change in fund balance 5,8005,8004,535 (1,265) Fund balance - January 1 111,506111,506111,506 - Fund balance - December 31 $ 117,306$ 117,306$ 116,041 $ (1,265) 94 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Parking For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Charges for services $ 67,000$ 67,000$ 74,884 $ 7,884 Fines 20,00020,00022,420 2,420 Investment earnings 1,5001,5001,219 (281) Total Revenues 88,50088,50098,523 10,023 Expenditures Current: Public safety 59,23659,23658,585 651 Highways and streets 28,89428,89434,269 (5,375) Total expenditures 88,13088,13092,854 (4,724) Net change in fund balance 3703705,669 5,299 Fund balance - January 1 171,052171,052171,052 - Fund balance - December 31 $ 171,422$ 171,422$ 176,721 $ 5,299 95 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Communications For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Investment earnings $ 1,500$ 1,500$ 2,214 $ 714 Other miscellaneous revenues 200,000200,000231,472 31,472 Total Revenues 201,500201,500233,686 32,186 Expenditures Current: General government 123,106123,106114,773 8,333 Capital Outlay --52,236 (52,236) Total expenditures 123,106123,106167,009 (43,903) Excess (deficiency) of revenues over expenditures 78,39478,39466,677 (11,717) Other financing sources (uses) Transfer out (86,920)(86,920)(86,920) - Total other financing sources (uses) (86,920)(86,920)(86,920) - Net change in fund balance (8,526)(8,526)(20,243) (11,717) Fund balance - January 1 401,423401,423401,423 - Fund balance - December 31 $ 392,897$ 392,897$ 381,180 $ (11,717) 96 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Depot Coffee House For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Intergovernmental$ 10,000$ 10,000$ 6,000 $ (4,000) Charges for services 51,00051,00072,055 21,055 Investment earnings --123 123 Other miscellaneous revenues 59,00059,000192,181 133,181 Total Revenues 120,000120,000270,359 150,359 Expenditures Current: Culture and recreation 115,175115,175282,540 (167,365) Capital Outlay 5,0005,0003,637 1,363 Total expenditures 120,175120,175286,177 (166,002) Excess (deficiency) of revenues over expenditures (175)(175)(15,818) (15,643) Other financing sources (uses) Transfer in 10,00010,00010,000 - Total other financing sources (uses) 10,00010,00010,000 - Net change in fund balance 9,8259,825(5,818) (15,643) Fund balance - January 1 14,31314,31314,313 - Fund balance - December 31 $ 24,138$ 24,138$ 8,495 $ (15,643) 97 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Tax Increment District Entertainment District For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Tax increments $ 55,000$ 55,000$ 58,172 $ 3,172 Investment earnings 500500293 (207) Total Revenues 55,50055,50058,465 2,965 Expenditures Current: Urban redevelopment and housing 3,0003,0003,110 (110) Debt Service: Interest and fiscal fees --11,987 (11,987) Total expenditures 3,0003,00015,097 (12,097) Net change in fund balance 52,50052,50043,368 (9,132) Fund balance - January 1 (200,646)(200,646)(200,646) - Fund balance - December 31 $ (148,146)$ (148,146)$ (157,278) $ (9,132) 98 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Tax Increment District RL Johnson For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Investment earnings $ 100$ 100$ 53 $ (47) Total Revenues 10010053 (47) Other financing sources (uses) Transfer out --(201,625) (201,625) Total other financing sources (uses) --(201,625) (201,625) Net change in fund balance 100100(201,572) (201,672) Fund balance - January 1 201,572201,572201,572 - Fund balance - December 31 $ 201,672$ 201,672$ - $ (201,672) 99 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Tax Increment District Sonoma For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Tax increments $ 9,500$ 9,500$ 9,384 $ (116) Investment earnings 10010093 (7) Other miscellaneous revenues 9,5249,5249,640 116 Total Revenues 19,12419,12419,117 (7) Expenditures Current: Urban redevelopment and housing 1,9501,9502,521 (571) Debt service: Interest and fiscal fees --9,355 (9,355) Total expenditures 1,9501,95011,876 (9,926) Excess (deficiency) of revenues over expenditures 17,17417,1747,241 (9,933) Other financing sources (uses) Transfer in --24,315 24,315 Total other financing sources (uses) --24,315 24,315 Net change in fund balance 17,17417,17431,556 14,382 Fund balance - January 1 (272,655)(272,655)(272,655) - Fund balance - December 31 $ (255,481)$ (255,481)$ (241,099) $ 14,382 100 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Tax Increment District Oaks of Mainstreet For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Tax increments $ 140,000$ 140,000$ 133,034 $ (6,966) Intergovernmental --192 192 Investment earnings 2,5002,5002,501 1 Total Revenues 142,500142,500135,727 (6,773) Expenditures Current: Urban redevelopment and housing 4,4524,4524,841 (389) Total expenditures 4,4524,4524,841 (389) Excess (deficiency) of revenues over expenditures 138,048138,048130,886 (7,162) Other financing sources (uses) Transfer out (118,000)(118,000)(118,000) - Total other financing sources (uses) (118,000)(118,000)(118,000) - Net change in fund balance 20,04820,04812,886 (7,162) Fund balance - January 1 431,532431,532431,532 - Fund balance - December 31 $ 451,580$ 451,580$ 444,418 $ (7,162) 101 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds 5th Ave Flats For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Tax increments $ 10,800$ 10,800$ - $ (10,800) Other miscellaneous revenues 3,0003,000- (3,000) Total Revenues 13,80013,800- (13,800) Expenditures Current: Urban redevelopment and housing 6,3506,3503,646 2,704 Debt service: Interest and fiscal fees --1,964 (1,964) Total expenditures 6,3506,3505,610 740 Net change in fund balance 7,4507,450(5,610) (13,060) Fund balance - January 1 (368,305)(368,305)(368,305) - Fund balance - December 31 $ (360,855)$ (360,855)$ (373,915) $ (13,060) 102 City of Hopkins Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds Tax Increment District Marketplace & Main For the Year Ended December 31, 2012 FinalVariance with Original Approved Final Budget Budget Budget Actual Over/Under Revenues Other miscellaneous revenues $ -$ -$ 1,386 $ 1,386 Total Revenues --1,386 1,386 Expenditures Current: Urban redevelopment and housing 7,3507,350405,259 (397,909) Debt service: Interest and fiscal fees --620 (620) Total expenditures 7,3507,350405,879 (398,529) Excess (deficiency) of revenues over expenditures (7,350)(7,350)(404,493) (397,143) Other financing sources (uses) Transfer in --201,625 201,625 Total other financing sources (uses) --201,625 201,625 Net change in fund balance (7,350)(7,350)(202,868) (195,518) Fund balance - January 1 (5,897)(5,897)(5,897) - Fund balance - December 31 $ (13,247)$ (13,247)$ (208,765) $ (195,518) 103 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. 104 City of Hopkins Combining Statement of Net Position Nonmajor Enterprise Funds December 31, 2012 Nonmajor Business-type Activities-Enterprise Funds RefuseHousing Utility Authority Total Assets Current assets Cash and investments $ 665,423$ 536,830$ 1,202,253 Accounts receivable 41,642-41,642 Accrued interest receivable 936-936 Due from other governments -6,0766,076 Inventory3,867-3,867 Total current assets 711,868542,9061,254,774 Noncurrent assets Prepaid expenses -16,63316,633 Capital Assets, nondepreciable: Land -180,066180,066 Construction in progress -8,2508,250 Capital Assets, depreciable: Building and structures 302,7274,183,0964,485,823 Distribution system 2,584-2,584 Machinery and equipment 662,93350,439713,372 Less accumulated depreciation (459,639)(2,930,205)(3,389,844) Total noncurrent assets 508,6051,508,2792,016,884 Total Assets 1,220,4732,051,1853,271,658 Liabilities Current Liablilities: Accounts payable 39,14525,90065,045 Salaries payable 19,649-19,649 Due to other funds -34,53634,536 Due to other governments 5,772-5,772 Compensated absences 16,08617,62233,708 Total current liabilities 80,65278,058158,710 Noncurrent Liabilities: Net OPEB liability -10,51210,512 Total Liabilities 80,65288,570169,222 Net Position Net investment in capital assets 508,6051,491,6462,000,251 Unrestricted 631,216470,9691,102,185 Total Net Position $ 1,139,821$ 1,962,615$ 3,102,436 105 City of Hopkins Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Activities For the Year Ended December 31, 2012 Nonmajor Business-type Activities-Enterprise Funds Nonmajor Refuse Housing Enterprise Funds UtilityAuthorityTotal Operating revenues Charges for services $ 895,846$ 239,153$ 1,134,999 Other 11,44116,76828,209 Total operating revenues 907,287255,9211,163,208 Operating expenses Cost of sales and services 655,76094,010749,770 Administration 151,432314,403465,835 Depreciation 55,094155,450210,544 Total operating expenses 862,286563,8631,426,149 Operating income (loss) 45,001(307,942)(262,941) Nonoperating revenues (expenses) Investment earnings 3,945-3,945 Intergovernmental grants 17,795197,491215,286 Total nonoperating revenues (expenses) 21,740197,491219,231 Income (loss) before contributions and transfers 66,741(110,451)(43,710) Capital contributions Building improvements -206,681206,681 Transfers (25,000)-(25,000) Change in net position 41,74196,230137,971 Total net position - January 1 1,098,0801,866,3852,964,465 Total net position - December 31 $ 1,139,821$ 1,962,615$ 3,102,436 106 City of Hopkins Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended December 31, 2012 Nonmajor Business-type Activities-Enterprise Funds Nonmajor Enterprise Refuse Housing Funds UtilityAuthorityTotal Cash Flows from Operating Activities Receipts from customers and users $ 912,344 $ 332,349 $ 1,244,693 Payments to suppliers (342,847) (356,939) (699,786) Payments to employees (299,753) (89,548) (389,301) Payments for interfund services used (151,432) (188,442) (339,874) Net cash used by operating activities 118,312 (302,580) (184,268) Cash Flows from Noncapital Financing Activities Intergovernmental grants 17,795 404,172 421,967 Transfers (to) from other funds (25,000) - (25,000) Net cash provided (used) by noncapital and related financing activities (7,205) 404,172 396,967 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets - (23,855) (23,855) Proceeds from sales of capital assets - - - Net cash provided (used) by capital and related financing activities - (23,855) (23,855) Cash Flows From Investing Activities Interest received 4,888 - 4,888 Net increase (decrease) in cash and investments 115,995 77,737 193,732 Cash and investments - January 1 549,428 459,093 1,008,521 Cash and investments - December 31 $ 665,423 $ 536,830 $ 1,202,253 Reconciliation of operating loss to net cash used by operating activities: Operating income (loss) 45,001 (307,942) (262,941) Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation expense 55,094 155,450 210,544 (Increase) decrease in: Accounts receivable 5,057 76,428 81,485 Inventory (1,271) - (1,271) Prepaid expense - (16,633) (16,633) Increase (decrease) in: Accounts, compensated absences and accrued interest payable 14,454 (21,441) (6,987) Due to other funds - (188,442) (188,442) Due to other governments (23) - (23) Net cash used by operating activities $ 118,312 $ (302,580) $ (184,268) Noncash investing, capital and financing activities Capital contribution $ -$ $ 206,681 $ 206,681 107 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. 108 City of Hopkins Combining Statement of Net Position Internal Service Funds December 31, 2012 EquipmentInsuranceEmployee Replacement Risk Benefits Total Assets Current assets Cash and investments $ 1,098,353$ 236,713$ 942,265 $ 2,277,331 Accrued interest receivable 1,5453331,290 3,168 Advances to other funds 21,820-- 21,820 Total current assets 1,121,718237,046943,555 2,302,319 Property and equipment Machinery and equipment 6,760,671-- 6,760,671 Less accumulated depreciation (3,982,974)-- (3,982,974) Net property and equipment 2,777,697-- 2,777,697 Total Assets 3,899,415237,046943,555 5,080,016 Liabilities Current liabilities Accounts payable 12,905-- 12,905 Compensated absences --721,147 721,147 Accrued interest payable 2,554-- 2,554 Capital lease - current 20,299-- 20,299 Total current liabilities 35,758-721,147 756,905 Noncurrent liabilities Compensated absences payable --77,907 77,907 Capital lease payable 258,784-- 258,784 Total noncurrent liabilities 258,784-77,907 336,691 Total Liabilities 294,542-799,054 1,093,596 Net Position Net investment in capital assets 2,498,614-- 2,498,614 Unrestricted 1,106,259237,046144,501 1,487,806 Total Net Position $ 3,604,873$ 237,046$ 144,501 $ 3,986,420 109 City of Hopkins Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds Year Ended December 31, 2012 EquipmentInsuranceEmployee Replacement Risk Benefits Total Operating revenues Charges for services $ 316,784$ 119,830$ - $ 436,614 Operating expenses Materials, supplies and services 4,03630,893- 34,929 Administration 11,7671,174-12,941 Depreciation expense 432,022-- 432,022 Total operating expenses 447,82532,067- 479,892 Operating income (loss) (131,041)87,763- (43,278) Nonoperating revenues (expenses) Investment earnings 5,9101,1575,002 12,069 Interest/fiscal agent expense (14,700)-- (14,700) Gain on sale of assets 47,834-- 47,834 Total nonoperating revenues (expenses) 39,0441,1575,002 45,203 Income (loss) before contributions and transfers (91,997)88,9205,002 1,925 Transfers and contributions Transfers out 346,274-- 346,274 Total transfers and contributions 346,274-- 346,274 Change in net position 254,27788,9205,002 348,199 Net position - January 1 3,350,596148,126139,499 3,638,221 Net position - December 31 $ 3,604,873$ 237,046$ 144,501 $ 3,986,420 110 City of Hopkins Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2012 Equipment Insurance Employee Replacement Risk Benefits Totals Cash Flows from Operating Activities Receipts from customers and users $ -$ 119,830 $ -$ 119,830 Receipts from interfund services provided 340,678 - - 340,678 Payments to suppliers (3,907) (32,933) - (36,840) Payments for interfund services used - - 26,271 26,271 Payments for interfund services used (11,767) (1,174) - (12,941) Net cash provided (used) by operating activities 325,004 85,723 26,271 436,998 Cash Flows from Capital and Related Financing Activities: Proceeds from capital debt 346,274 - - 346,274 Purchases of capital assets (476,034) - - (476,034) Proceeds from sales of capital assets 47,834 - - 47,834 Interest and other payments (15,058) - - (15,058) Capital lease payments (39,158) - - (39,158) Net cash used by capital and related financing activities (136,142) - - (136,142) Cash Flows From Investing Activities 7,427 1,335 7,133 15,895 Net increase (decrease) in cash and cash equivalents 196,289 87,058 33,404 316,751 Cash and Cash Equivalents - January 1 902,064 149,655 908,861 1,960,580 Cash and Cash Equivalents - December 31 $ 1,098,353 $ 236,713 $ 942,265 $ 2,277,331 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (131,041)$ 87,763 $ -$ (43,278) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 432,022 - - 432,022 (Increase) decrease in: Accounts receivable 264 - - 264 Due from other funds 23,630 - - 23,630 Increase (decrease) in: Accounts, compensated absences and accrued interest payable 129 (2,040) 26,271 24,360 Net Cash Provided (Used) by Operating Activities $ 325,004 $ 85,723 $ 26,271 $ 436,998 111 112 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 SECTION III STATISTICAL SECTION 113 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 114 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. 114 City of Hopkins Net Assets by Component, Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Governmental activities Invested in capital assets, net of related debt $ 15,459,174 $ 11,950,343 $ 22,318,027 $ 25,315,084 Restricted 287,418 9,009,337 9,921,122 6,189,025 Unrestricted 22,415,733 20,189,189 9,056,853 10,849,585 Total governmental activities net assets $ 38,162,325 $ 41,148,869 $ 41,296,002 $ 42,353,694 Business-type activities Invested in capital assets, net of related debt $ 13,425,790 $ $ 14,380,391 $ 14,321,166 $ $ 14,612,000 Restricted - 250,000 250,000 - Unrestricted 3,196,697 1,778,422 1,464,913 1,917,071 Total business-type activities net assets $ 16,622,487 $ 16,408,813 $ 16,036,079 $ 16,529,071 Primary Government Invested in capital assets, net of related debt $ 28,884,964 $ 26,330,734 $ 36,639,193 $ 39,927,084 Restricted 287,418 9,259,337 10,171,122 6,189,025 Unrestricted 25,612,430 21,967,611 10,521,766 12,766,656 Total primary government net assets $ 54,784,812 $ 57,557,682 $ 57,332,081 $ 58,882,765 115 Schedule 1 Fiscal Year 2007 2008 2009 2010 2011 2012 $ 28,941,120 $ 30,769,922 $ 32,759,480 $ 32,823,582$ 31,666,432 $ 31,891,229 13,879,837 10,074,674 11,952,783 8,613,114 8,250,360 8,684,347 2,006,418 3,663,772 10,022 3,590,101 6,348,703 7,854,941 $ 44,827,375 $ 44,508,368 $ 44,722,285 $ 45,026,797 $ 46,265,495 $ 48,430,517 $ 15,688,414 $ $ 16,081,209 $ 14,994,311 $ 16,279,028 $ 17,075,284 $ 16,405,495 - - - - - - 733,298 280,214 1,655,927 1,073,329 731,674 2,262,236 $ 16,421,712 $ 16,361,423 $ 16,650,238 $ 17,352,357 $ 17,806,958 $ 18,667,731 $ 44,629,534 $ 46,851,131 $ 47,753,791 $ 49,102,610 $ 48,741,716 $ 48,296,724 13,879,837 10,074,674 11,952,783 8,613,114 8,250,360 8,684,347 2,739,716 3,943,986 1,665,949 4,663,430 7,080,377 10,117,177 $ 61,249,087 $ 60,869,791 $ 61,372,523 $ 62,379,154 $ 64,072,453 $ 67,098,248 116 City of Hopkins Changes in Net Position, Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003200420052006 2007 2008 Expenses Governmental activities: General Government $ 1,411,159 $ 1,150,064 $ 1,380,540 $ 1,402,448 $ 1,679,630 $ 1,721,624 Public Safety 4,477,224 4,750,296 4,883,279 5,039,235 5,665,419 6,171,249 Health and Welfare 185,893 180,314 176,590 176,275 188,483 236,858 Highways and Streets 2,229,671 2,114,601 2,334,756 2,380,252 2,870,426 3,154,762 Urban Development and Housing 1,596,395 939,846 913,645 1,022,476 1,903,295 1,037,927 Culture and Recreation 1,220,030 1,193,801 1,277,501 1,123,334 1,277,539 1,565,184 Interest on long-term debt 1,650,989 1,604,523 1,480,148 1,282,328 1,069,863 1,090,341 Total governmental activities expenses 12,771,361 11,933,445 12,446,459 12,426,348 14,654,655 14,977,945 Business-type activities: Water 1,075,399 1,053,600 1,080,393 1,117,037 1,240,760 1,356,448 Sewer 1,459,743 1,410,200 1,475,587 1,608,116 1,784,001 1,756,489 Storm Sewer 409,282 429,768 457,183 408,252 416,479 417,595 Refuse 654,721 686,883 739,490 714,389 732,239 771,107 Pavilion/Ice Arena 339,511 367,367 395,722 371,845 385,062 411,134 Skate Park 18,199 44,056 90,268 - - - Housing and Redevelopment Authority 448,669 425,024 501,731 525,588 483,944 573,070 Total business-type activities 4,405,524 4,416,898 4,740,374 4,745,227 5,042,485 5,285,843 Total primary government expenses $ 17,176,885 $ 16,350,343 $ 17,186,833 $ 17,171,575 $ 19,697,140 $ 20,263,788 Program Revenues Governmental activities: Charges for services: General Government $ 301,021 $ 28,792 $ 34,760 $ 19,727 $ 38,595 $ 19,239 Public Safety 1,179,448 65,692 70,597 70,604 219,121 262,194 Health and Welfare 18,497 14,183 13,560 15,817 13,866 16,560 Highways and Streets 720,524 51,233 225,523 60,698 59,791 59,803 Urban Development and Housing 293,634 200,000 200,054 90,727 30,363 - Culture and Recreation 351,011 482,549 557,973 401,860 397,992 514,592 Operating grants and contributions 1,394,761 2,110,441 1,471,449 1,422,575 2,123,438 1,949,375 Capital grants and contributions 764,138 1,466,971 58,871 687,552 1,677,841 170,393 Total governmental activities program revenues 5,023,034 4,419,861 2,632,787 2,769,560 4,561,007 2,992,156 Business-type activities: Charges for services: Water 942,795 826,129 987,913 1,063,361 1,133,248 1,188,610 Sewer 1,324,254 1,253,772 1,277,724 1,645,661 1,427,675 1,474,474 Storm Sewer 666,524 717,691 666,848 735,183 724,778 725,029 Refuse 515,930 590,885 705,138 687,127 692,222 713,270 Pavilion/Ice Arena 275,488 361,297 347,343 672,739 459,003 358,645 Skate Park 5,655 - - - - - Housing and Redevelopment Authority 427,495 267,646 270,723 265,277 256,104 348,938 Operating grants and contributions 304,350 232,689 158,270 209,533 299,126 251,885 Capital grants and contributions 98,873 975 16,298 1,850 - 394,913 Total business-type activities program revenues 4,561,364 4,251,084 4,430,257 5,280,731 4,992,156 5,455,764 Total primary government program revenues $ 9,584,398 $ 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 activities 155,840 (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 taxes $ 6,877,331 $ 7,289,973 $ 7,845,641 $ 8,200,725 $ 8,732,711 $ 9,497,650 Tax Increments 2,214,833 2,177,518 970,846 990,776 1,050,601 1,186,395 Unrestricted grants and contributions 691,438 566,514 603,307 579,440 564,396 434,163 Unrestricted investment earnings 327,959 339,883 389,548 790,079 754,338 387,424 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 activities 10,111,561 10,500,128 9,960,805 10,714,480 11,256,502 11,666,782 Business-type activities: Unrestricted investment earnings 88,767 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 activities 88,767 (47,860) (62,617) (42,512) (57,030) (230,210) Total primary government $ 10,200,328 $ 10,452,268 $ 9,898,188 $ 10,671,968 $ 11,199,472 $ 11,436,572 Change in Net Position Governmental activities 2,363,234 2,986,544 147,133 1,057,692 1,162,854 (319,007) Business-type activities 244,607 (213,674) (372,734) 492,992 (107,359) (60,289) Total primary government $ 2,607,841 $ 2,772,870 $ (225,601)$ 1,550,684 $ 1,055,495 $ (379,296) 117 Schedule 2 Fiscal Year 2009 2010 2011 2012 $ 1,679,040 $ 1,693,275 $ 1,719,970 $ 2,056,756 6,249,519 6,243,813 6,213,995 6,382,270 278,002 180,895 170,018 136,528 3,069,078 3,062,507 3,332,067 3,226,807 1,690,861 1,914,779 2,859,900 2,362,030 1,482,349 1,505,513 1,644,834 1,726,812 1,025,771 895,873 871,902 811,914 15,474,620 15,496,655 16,812,686 16,703,117 1,209,508 1,196,947 1,263,835 1,365,542 1,741,115 1,844,309 1,800,126 1,816,058 403,231 420,619 407,057 451,659 786,522 738,398 778,044 862,286 401,598 398,354 416,166 430,082 - - - - 528,542 542,324 607,090 563,863 5,070,516 5,140,951 5,272,318 5,489,490 $ 20,545,136 $ 20,637,606 $ 22,085,004 $ 22,192,607 $ 30,797 $ 17,169 $ 42,112 $ 40,360 284,160 124,338 186,611 159,642 9,265 32,135 41,815 55,331 42,150 56,902 73,519 78,226 - - 206,916 3,444 509,098 560,702 623,147 684,018 2,441,622 1,894,777 2,325,158 3,499,465 745,505 567,370 1,751,464 1,350,147 4,062,597 3,253,393 5,250,742 5,870,633 1,339,390 1,343,153 1,395,306 1,534,071 1,598,717 1,812,585 1,838,949 2,015,166 800,843 803,889 803,417 801,345 821,628 852,215 939,421 894,534 368,228 363,591 385,748 70,976 - - - - 279,860 258,388 255,188 255,921 150,814 216,596 190,442 698,769 142,691 328,515 28,250 206,681 5,502,171 5,978,932 5,836,721 6,477,463 $ 9,564,768 $ 9,232,325 $ 11,087,463 $ 12,348,096 $ (11,412,023) $ (12,243,262) $ (11,561,944) $ (10,832,484) 431,655 837,981 564,403 987,973 $ (10,980,368) $ (11,405,281) $ (10,997,541) $ (9,844,511) $ 9,353,966 $ 9,827,813 $ 9,952,156 $ 10,354,188 1,636,609 2,147,517 2,239,668 2,332,863 309,609 306,215 312,519 20,724 170,960 121,229 108,956 106,304 9,796 - 42,343 38,427 145,000 145,000 145,000 145,000 11,625,940 12,547,774 12,800,642 12,997,506 12,841 9,138 8,319 9,800 1,367 - 26,879 8,000 (12,048) - - - (145,000) (145,000) (145,000) (145,000) (142,840) (135,862) (109,802) (127,200) $ 11,483,100 $ 12,411,912 $ 12,690,840 $ 12,870,306 213,917 304,512 1,238,698 2,165,022 288,815 702,119 454,601 860,773 $ 502,732 $ 1,006,631 $ 1,693,299 $ 3,025,795 118 City of Hopkins Fund Balances, Governmental Funds, Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 General Fund Reserved $ 557,628 $ 97,740 $ 943,474 $ 974,517 Unreserved 3,230,283 3,973,556 3,367,721 3,345,606 Nonspendable - - - - Assigned - - - - Unassigned - - - - Total general fund $ 3,787,911 $ 4,071,296 $ 4,311,195 $ 4,320,123 All other Governmental Funds Reserved reported in: Special Revenue Funds $ 5,813,114 $ 4,326,291 $ 6,010,974 $ - Capital Projects Funds 6,500,016 1,526,732 - - Debt Service Funds 3,045,346 3,789,322 6,303,112 2,852,655 Unreserved reported in: Special Revenue Funds 1,705,798 2,901,921 969,812 1,539,404 Capital Projects Funds 3,993,924 3,993,720 3,945,500 1,718,021 Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $ 21,058,198 $ 16,537,986 $ 17,229,398 $ 6,110,080 Total all funds $ 24,846,109 $ 20,609,282 $ 21,540,593 $ 10,430,203 Note: The City began to use new categories of fund balance when it implemented GASB 54 in 2011. Prior years were not retroactively reclassified. 119 Schedule 3 Fiscal Year 2007 2008 2009 2010 2011 2012 $ 1,157,142 $ 111,806 $ 196,790 $182,211$ -$ - 3,304,729 3,884,309 3,930,996 4,071,049 - - - - - - 174,487 196,500 - - - - 591,676 508,767 - - - - 4,266,048 4,488,876 $ 4,461,871 $ 3,996,115 $ 4,127,786 $ 4,253,260 $ 5,032,211 $ 5,194,143 $ 3,137,313 $ 3,189,829 $ 3,528,529 $ 2,844,901 $ -$ - - - - - - - 12,982,623 3,250,202 6,021,748 4,850,159 - - 1,070,230 955,772 (24,957) 590,281 - - 1,808,708 1,381,657 1,264,405 3,572,002 - - - - - - 2,674,342 1,718,341 - - - - 5,823,862 6,312,043 - - - - 926,349 2,679,389 - - - - 2,502,336 4,785,717 - - - - (1,916,865) (2,090,788) $ 18,998,874 $ 8,777,460 $ 10,789,725 $ 11,857,343 $ 10,010,024 $ 13,404,702 $ 23,460,745 $ 12,773,575 $ 14,917,511 $ 16,110,603 $ 15,042,235 $ 18,598,845 120 City of Hopkins Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Revenues Property Taxes $ 6,877,331 $ 7,283,712 $ 7,788,557 $ 8,134,915 Tax Increments 2,214,835 2,177,518 970,846 990,776 Special Assessments 1,460,464 1,441,885 1,368,262 1,288,437 Intergovernmental 2,850,337 1,758,573 1,177,016 1,036,645 Licenses and Permits 777,997 686,933 643,811 540,120 Charges for Services 797,233 792,280 1,017,343 631,655 Fines and Forfeits 181,893 197,337 207,454 203,830 Investment Earnings 327,959 339,883 358,336 705,591 Miscellaneous 224,320 700,012 558,575 692,649 Total revenues 15,712,369 15,378,133 14,090,200 14,224,618 Expenditures Current: General Government 1,259,121 1,094,526 1,332,796 1,366,246 Public Safety 4,433,499 4,695,803 4,848,336 4,994,273 Health and Welfare 185,893 180,314 176,552 176,502 Highways and Streets 1,674,836 1,681,484 1,812,403 1,824,658 Urban Redevelopment and Housing 1,595,927 937,849 911,005 944,577 Culture and Recreation 1,044,948 1,074,587 1,093,699 997,987 Other - - - - Capital outlay 9,030,629 6,651,109 2,489,137 3,055,815 Debt Service Principal 1,407,647 1,644,908 2,306,152 4,926,284 Interest and fiscal charges 1,688,138 1,780,620 1,535,171 1,418,311 Bond Issuance Costs - - 41,906 - Total expenditures 22,320,638 19,741,200 16,547,157 19,704,653 Excess (deficiency) of revenues over expenditures (6,608,269) (4,363,067) (2,456,957) (5,480,035) Other Financing Sources (Uses) Sale of Property - - - - Proceeds from Issuance of Debt 3,050,000 - 3,385,000 - Discount on Debt - - (4,240) - Premium on Debt - - - - Refunded bond payment - - - - Transfer In 2,042,771 2,594,787 1,625,994 5,273,592 Transfer Out (2,602,175) (2,468,547) (1,618,486) (5,278,592) Total other financing sources (uses) 2,490,596 126,240 3,388,268 (5,000) Net change in fund balances $ (4,117,673)$ (4,236,827)$ 931,311 $ (5,485,035) Debt service as a percentage of noncapital expenditures 23.3 % 26.2 % 27.3 % 38.1 % 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. 121 Schedule 4 Fiscal Year 2007 2008 2009 2010 2011 2012 $ 8,473,516 $ 8,844,113 $ 9,377,127 $ 9,795,318 $ 10,038,514 $ 10,403,945 1,050,601 1,186,395 1,636,535 2,147,517 2,239,668 2,332,863 1,172,977 1,120,741 1,071,406 1,128,467 1,446,922 1,307,949 2,115,670 1,053,405 1,220,766 1,215,163 1,931,333 1,549,464 880,443 744,502 820,031 623,492 691,962 476,296 729,365 872,388 875,470 800,115 908,106 787,724 215,051 188,003 148,172 138,894 174,303 253,530 638,796 318,074 135,569 106,128 94,409 94,235 851,203 709,915 1,024,879 589,604 701,683 1,881,347 16,127,622 15,037,536 16,309,955 16,544,698 18,226,900 19,087,353 1,597,503 1,590,347 1,552,712 1,576,676 1,598,885 4,038,893 5,290,802 5,779,047 5,888,481 5,881,633 5,895,640 6,144,206 184,541 232,163 273,760 177,732 168,202 136,169 2,091,043 2,224,338 2,139,351 2,082,853 2,337,018 2,193,209 1,787,131 935,402 1,586,083 1,881,610 2,826,172 2,348,694 1,122,891 1,289,323 1,278,108 1,339,695 1,510,024 1,581,886 - - - - - - 5,830,516 1,228,755 1,556,121 1,358,792 1,972,143 2,470,049 1,610,000 1,705,000 1,805,000 4,665,000 2,065,000 1,635,000 1,131,514 1,100,211 1,037,372 953,232 852,184 819,238 81,109 - 34,972 49,233 - - 20,727,050 16,084,586 17,151,960 19,966,456 19,225,268 21,367,344 (4,599,428) (1,047,050) (842,005) (3,421,758) (998,368) (2,279,991) - - 341 - - - 11,875,000 - 2,865,000 4,515,000 - 5,985,000 (72,905) - (24,400) (45,150) - (12,830) 7,520 - - - - 65,705 - - - - (215,000) - 14,940,055 1,043,155 1,088,875 7,808,068 1,504,822 4,788,179 (14,745,055) (898,155) (943,875) (7,663,068) (1,359,822) (4,989,453) 12,004,615 145,000 2,985,941 4,614,850 (70,000) 5,836,601 $ 7,405,187 $ (902,050) $ 2,143,936 $ 1,193,092 $ (1,068,368) $ 3,556,610 18.40 % 18.90 % 18.20 % 30.20 % 16.90 % 13.00 % 122 Schedule 5 City of Hopkins Assessed and Actual Value of Taxable Property Last Ten Fiscal Years (in thousands of dollars) Less: Total Taxable Payable Residential Apartment Commercial Industrial Other Tax-Exempt Market Total Direct Year Property Property Property Property Property Property Value Tax Rate 2003 $ 690,469 $ 234,684 $ 178,305 $ 148,739 $ 215 $ 85,442 $ 1,166,970 56.100 2004 924,590 256,511 264,953 154,778 225 182,899 1,418,158 56.664 2005 1,000,569 256,942 277,231 163,616 243 182,899 1,515,702 48.944 2006 1,062,213 256,559 305,233 176,812 288 182,899 1,618,206 48.262 2007 1,080,591 257,658 329,601 188,941 306 182,899 1,674,198 45.862 2008 1,061,645 257,275 352,028 198,808 306 182,899 1,687,163 45.570 2009 1,017,790 266,458 395,842 192,138 1,815 182,899 1,691,144 47.574 2010 922,267 251,418 404,674 168,803 1,503 177,975 1,570,690 49.377 2011 883,348 251,141 397,506 173,349 1,272 179,699 1,526,917 56.463 2012 816,431 252,968 422,769 174,254 1,492 179,699 1,488,215 59.718 Notes: (1)The direct tax rate is applied to the tax capacity of the property which is calculate 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 revalues on a six-year cycle. All other property is revalued on a three year cycle. 123 Schedule 6 City of Hopkins Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) City Direct Rate Overlapping Rates General Total Direct and Obligation Debt SchoolHennepin Metro Total Overlapping Tax Basic Rate Service Total Direct District CountyCouncil Other Overlapping Rate Fiscal Year 2003 49.190 6.910 56.100 20.590 50.610 3.830 6.010 81.040 137.140 2004 49.028 7.636 56.664 22.200 47.320 3.500 5.260 78.280 134.944 2005 44.049 4.895 48.944 19.176 44.172 3.304 5.243 71.895 120.839 2006 41.300 6.962 48.262 21.565 41.016 2.924 5.180 70.685 118.947 2007 39.574 6.288 45.862 19.019 39.110 2.671 5.746 66.546 112.408 2008 39.237 6.333 45.570 19.218 38.571 2.562 5.984 66.335 111.905 2009 41.346 6.228 47.574 20.080 40.413 2.579 5.834 68.906 116.480 2010 43.121 6.256 49.377 22.944 42.561 2.612 6.825 74.942 124.319 2011 49.638 6.825 56.463 26.456 45.840 2.949 7.540 82.785 139.248 2012 52.238 7.480 59.718 29.270 48.231 3.084 7.827 88.412 148.130 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. 124 Schedule 7 City of Hopkins Principal Property Tax Payers, Current Year and Ten Years Ago 2012 2003 Percentage Percentage of Total of Total City City Tax Tax Tax Tax Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Super Valu $ 969,890 1 5.00 % $ 1,054,250 1 7.51 % Excelsior Crossings Invesments LLC 741,650 2 3.82 - - - Hines Globel Reit 9320 Excel 740,770 3 3.82 - - - American Fund US Invest LP 738,510 4 3.81 - - - Southwest Real Estate, Inc. 222,163 5 1.14 - - - Ramsgate Apartments LLC 210,613 6 1.09 227,965 5 1.62 Hopkins Real Estate, LLC 210,250 7 1.08 - - - Duke Realty Ltd Partnership 199,490 8 1.03 282,420 3 2.01 Hines Reit Mpls Ind LLC 199,250 9 1.03 - - - City Center Ventures, LLC 185,450 10 0.96 - - - Greenfield Apartments, LLP -- - 331,320 2 2.36 St. Therese -- - 277,305 4 1.98 Westside Village -- - 194,870 6 1.39 Auburn Limited Partnership -- - 158,685 7 1.13 EDCO Products Inc. -- - 131,884 8 0.94 Rosewood West -- - 126,990 9 0.90 Gateway Foods -- - 121,870 10 0.87 Total $ 4,418,036 22.78 % $ 2,907,559 20.71 % Total City 2011/2002 tax capacity $ 19,405,415 $ 14,033,663 Source: Hennepin County, Minnesota Assessor's Office Notes: 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. 125 Schedule 8 2.7 % (1) 3.6 % (2) 3.2 % (3) 3.6 % (4) 0.2 % 0.6 % 0.4 % 0.4 % 0.5 % 2.0 % Outstanding Percentage Years Amount Levy Taxes Outstanding Fiscal Operating Debt Total Tax of Subsequent of Delinquent of Levy 2003 $ 6,285,252 $ 883,000 $ 7,168,252 $ 7,075,375 98.7 %$ 81,210 $ 7,156,585 99.8 %$ 11,667 49,393 33,695 34,197 44,127 2008 7,942,380 1,282,000 9,224,380 8,831,737 95.7 % 142,059 8,973,796 97.3 % 250,584 2009 8,346,114 1,257,000 9,603,114 9,101,458 94.8 % 157,354 9,258,812 96.4% 344,302 2010 8,733,685 1,267,000 10,000,685 9,533,671 95.3 % 142,372 9,676,043 96.8 % 324,642 2011 9,022,414 1,241,000 10,263,414 9,828,089 95.8 % 64,374 9,892,463 96.4 % 370,951 2012 9,119,591 1,306,400 10,425,991 10,181,673 97.7 % 36,533 10,218,206 98.0 % 207,785 Percentage 2004 6,666,136 1,038,000 7,704,136 7,582,356 98.4 % 72,387 7,654,743 99.4%2005 7,308,078 812,000 8,120,078 7,990,781 98.4 % 95,602 8,086,383 99.6 %2006 7,221,078 1,217,000 8,438,078 8,282,797 98.2 % 121,084 8,403,881 99.6 %2007 7,598,758 1,207,000 8,805,758 8,620,427 97.9 % 141,204 8,761,631 99.5 % Total Collections to Date Property Tax Levies and Collections, in Collections Last Ten Fiscal Years (1) In December 2008 the State of MN unalloted $126,391 in Market Value Homestead Credit that is included in the total levy. Taxes Levied for the Fiscal Year Fiscal Year of Levy City of Hopkins et Value Homestead Credit that is included in the total levy. et Value Homestead Credit that is included in the total levy. et Value Homestead Credit that is included in the total levy. 126 Percentage hose funds, outstanding delinquent taxes would be reduced to $121,086 and Year Tax Levy Tax Levy Levy Amount Levy s would be reduced to $127,434 and s would be reduced to $138,382 and reduced to $97,767 and the within Collected linquent taxes would be hose funds, outstanding delinquent taxehose funds, outstanding delinquent taxe (2) For the year 2009 State of MN unalloted $246,865 in Mark(3) For the year 2010 State of MN unalloted $241,193 in Mark(4) For the year 2011 State of MN unalloted $257,696 in Mark 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%. those funds, outstanding de Had the City received t Had the City received t Had the City received t Had the City received Notes: Schedule 9 12,235,000 8,805,000 3,010,000 3,905,000 38,405,000 17.71 % 2,211 2,565,000 8,135,000 2,690,000 3,410,000 26,655,000 11.69 % 1,521 2,440,000 10,290,000 2,330,000 6,200,000 30,505,000 14.02 % 1,745 2,315,000 8,330,000 4,885,000 5,080,000 29,235,000 12.86 % 1,662 2,185,000 7,300,000 4,385,000 3,805,000 25,680,000 10.76 % 1,460 - 6,765,000 7,230,000 4,780,000 28,955,000 12.16 % 1,635 2003 $ 1,145,000 $ 13,810,000 $ 12,633,056 $ 2,275,000 $ 5,710,000 $ 35,573,056 19.97 % 2,026 2004 985,000 13,810,000 11,307,436 1,980,000 5,270,000 33,352,436 17.71 % 1,890 2005 830,000 13,290,000 13,366,284 1,675,000 4,830,000 33,991,284 17.52 % 1,923 2006 675,000 12,770,000 9,420,000 1,370,000 4,380,000 28,615,000 13.90 % 1,658 Capita Per Percentage of Personal Income Government Primary Total Activities Business-Type Revenue Bonds Ratios of Outstanding Debt by Type found in note 9 of the notes to the financial statements. Last Ten Fiscal Years City of Hopkins Assessments Special Bonds 127 schedule on schedule 14 for personal income Increment Bonds Tax Governmental Activities Details regarding the District's outstanding debt can be Lease Revenue Bonds HRA See the Demographic and Economic Statistics 10,450,000 9,855,000 9,245,000 8,625,000 8,005,000 10,180,000 Obligation General Bonds . and population data Fiscal 2007 2008 2009 2010 2011 2012 Year Notes: Schedule 10 City of Hopkins Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstanding Less: Amt Percentage of General Available in Total Actual Taxable Fiscal Obligation Debt Service Primary Value of Per Year Bonds Funds Government Property Capita 2003 $ 14,955,000 $ 498,383 $ 14,456,617 1.146 % 823.32 2004 14,795,000 979,296 13,815,704 1.239 % 783.07 2005 14,120,000 716,119 13,403,881 0.974 % 758.35 2006 13,445,000 950,596 12,494,404 0.884 % 723.77 2007 13,135,000 1,080,940 12,054,060 0.772 % 694.08 2008 12,420,000 1,000,521 11,419,479 0.720 % 651.57 2009 11,685,000 880,866 10,804,134 0.677 % 618.05 2010 10,940,000 795,945 10,144,055 0.688 % 576.66 2011 10,190,000 641,016 9,548,984 0.625 % 542.83 2012 10,180,000 778,068 9,401,932 0.632 % 531.15 Notes: Details regarding the city's outstanding debt can be found in note 9 of the notes to the financial statements. Assessed and Actual Value of Taxable Property See the schedule 5 for taxable market value of property data Demographic and Economic Statistics See the schedule 14 for population data 128 Schedule 11 City of Hopkins Direct and Overlapping Governmental Activities Debt As of December 31, 2012 Estimated Estimated Shareof Net Debt Percentage Overlapping Outstanding Applicable (a) Debt Debt repaid with property taxes: School Districts: Hopkins ISD 270 $ 148,613,052 16.39 % $ 24,357,679 St. Louis Park ISD 283 44,284,075 0.37 % 163,851 Other Debt: Hennepin County 673,838,501 1.17 % 7,883,910 Hennepin Suburban Park District 72,840,200 1.58 % 1,150,875 Hennepin Regional RR Authority 38,770,299 1.17 % 453,612 Metropolitan Council 193,377,711 0.53 % 1,024,902 Subtotal - overlapping debt 10,513,300 City of Hopkins Direct Debt (b,c) 9,681,015 100 % 9,681,015 Total Direct and Overlapping Debt: $ 20,194,315 Source: Hennepin County, Minnesota Taxpayer Services 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. 129 $ 21,331 $ 25,601 $ 29,036 $ 31,603 $ 33,252 $ 50,615 $ 50,734 $ 47,121 $ 43,806 $ 42,189 8,772 10,144 9,549 9,402 $ 20,343 $ 24,791 $ 28,387 $ 31,108 $ 23,484 $ 41,352 $ 41,962 $ 36,977 $ 34,257 $ 32,787 17.29%21.53%21.80%22.29% Schedule 12 2012 2011 Debt limit (3% of market value) 42,189 Total net debt applicable to limit 9,402 Market value $ 1,406,292 General Obligation Bonds 10,180 Legal debt margin $ 32,787 general obligation debt (778) 2010 Legal Debt Margin Calculation for Fiscal Year 2012 2009 Less: Amount set aside for repayment of 495 9,768 9,263 1.57%29.38% 18.30% 2008 Debt applicable to limit: Fiscal Year Legal Debt Margin Information 2007 (dollars in thousands) Last Ten Fiscal Years City of Hopkins 130 2006 649 2.24% 2005 Total net debt applicable to limit 988 810 4.63% 3.16% 2004 2003 Total net debt applicable to the limit as a percentage of debt limit Legal debt margin Debt limit Schedule 13 803,889 995,000 53,794 0.77 799,938 205,000 29,585 3.41 -$ 690,367 $ 250,000 $ 113,178 1.90 741,831 330,000 141,647 1.57 682,497 325,000 130,213 1.50 775,261 330,000 119,445 1.72 724,778 350,000 111,605 1.57 725,029 365,000 98,846 1.56 800,843 365,000 79,437 1.80 Revenue Principal Interest Coverage 803,417 180,000 26,823 3.88 Debt Service Storm Sewer Revenue Bonds 2012 1,534,221 260,000 50,010 4.95 2,150,594 70,000 34,396 20.60 - 36,373 49.83 2011 1,395,306 210,000 41,125 5.56 1,838,949 60,000 32,650 19.85 - - - - - - Debt Service Revenue Principal Interest Coverage -$ - $ - - - - - - Pledged Revenue Coverage Sewer Revenue Bonds Last Ten Fiscal Years City of Hopkins - - - - - - 131 Details regarding the City's outstanding debt can be found in Note 9 of the notes to the financial statements. -$ 2010 1,342,073 1,000,000 56,211 1.27 1,812,585 - - - - - - $ 105,000 $ 84,079 5.12 $ Debt Service Revenue Principal Interest Coverage 2004 844,017 110,000 42,912 5.52 2005 998,129 115,000 79,532 5.13 2006 1,083,675 120,000 75,733 5.54 2007 1,133,248 125,000 69,699 5.82 2008 1,188,610 130,000 69,699 5.95 2009 1,339,390 140,000 53,440 6.92 Water Revenue Bonds 2003 $ 967,389 Fiscal Year Notes: Schedule 14 City of Hopkins Demographic and Economic Statistics Last Ten Calendar Years Personal Per Income (2) Capita (thousands Fiscal Personal SchoolUnemployment of dollars) Year Population (1) Income (2) Enrollment (3) Rate (4) 2003 17,559 $ 178,147 $ 35,252 10,350 4.6 2004 17,643 188,330 37,017 10,319 4.3 2005 17,675 193,990 37,892 9,799 3.7 2006 17,263 205,857 39,867 9,731 3.9 2007 17,367 216,840 41,642 9,673 4.5 2008 17,526 228,069 43,446 9,663 6.4 2009 17,481 217,609 41,204 9,688 6.7 2010 17,591 227,288 42,798 9,596 6.5 2011 17,591 238,768 44,672 9,462 5.5 2012 17,701 238,165 44,560 8,911 5.1 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 132 Schedule 15 City of Hopkins Principal Employers, Current Year and Ten Years Ago 2012 2003 Percentage Percentage of Total of Total Taxpayer Employees RankEmployment Employees Rank Employment Cargil 2,313 1 17.827 %- - -% SuperValu 1,249 2 9.626 1,457 1 12.383 ISD 270 Hopkins (1) 707 3 5.449 740 2 6.289 US Post Office 314 4 2.240 - - - Viro Med Labrotories 200 5 1.541 - - - Oak Ridge Country Club 195 6 1.503 190 4 1.615 Thermotech 1907 1.464 324 3 2.754 US Bank 185 8 1.426 - - - Augustana Chapel View Homes 1859 1.426 167 5 1.419 City of Hopkins 160 10 1.233 145 7 1.232 Walser Chrysler Jeep --- 150 6 1.275 Golden Living Center --- 135 8 1.147 EDCO Products --- 132 9 1.122 Rudy Luther's Hopkins Honda --- 125 10 1.062 Total 5,698 43.915 % 4,275 30.299 % 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. 133 Schedule 16 City of Hopkins Full-Time Equivalent City Employees by Type Last Ten Fiscal Years Full-time-Equivalent Employees as of December 31, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Government Administrative Services 5.11 3.53 5.55 5.55 5.15 5.05 4.95 4.80 4.80 4.95 Finance 4.00 4.30 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 Municipal Building 1.50 0.85 1.40 1.45 1.45 1.45 1.45 1.45 1.45 1.45 Community Services 10.30 9.74 8.90 8.90 9.48 9.85 9.95 9.95 9.95 9.80 Public Safety Police 40.25 39.00 37.50 38.50 39.40 39.45 40.00 39.00 40.00 39.50 Fire 0.90 0.90 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 Public Works 23.05 20.00 19.50 18.60 18.59 18.60 18.70 17.77 17.25 17.69 Recreation Activity Center 3.66 2.55 4.10 4.10 4.00 3.30 3.30 3.30 3.30 3.20 Skate Park - - - 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Planning & Zoning 1.28 1.20 1.20 1.20 1.20 1.15 1.15 1.35 1.35 1.35 Community Development - - - - - - - - - 0.85 Total General Government 90.05 82.07 83.95 84.15 85.12 84.70 85.35 83.47 83.95 84.64 Special Revenue Funds Economic Development 2.37 2.40 1.60 1.60 1.60 1.78 1.75 1.75 1.60 1.60 Paratransit 0.15 0.20 0.20 0.20 0.20 0.20 0.20 - - - Housing Rehabilitation 1.05 0.65 0.70 0.70 0.70 0.85 0.85 0.85 0.85 - Parking 1.80 1.20 2.00 2.00 1.00 1.00 1.00 1.00 1.00 0.72 Section 8 1.20 1.40 1.40 1.40 1.35 - - - - - Communication 0.58 0.07 0.05 0.05 0.10 0.10 0.10 0.40 0.25 0.25 Depot Coffee House 0.73 1.08 1.93 - 0.05 1.00 1.00 1.00 1.50 1.50 Art Center 3.92 3.72 4.22 4.05 4.05 4.05 4.05 4.05 4.55 4.30 Total Special Revenue Funds 11.80 10.72 12.10 10.00 9.05 8.98 8.95 9.05 9.75 8.37 Enterprise Funds Water 4.18 3.56 3.24 3.25 3.25 3.76 3.67 3.11 3.11 3.13 Sanitary Sewer 3.35 3.23 3.55 3.56 3.56 4.07 4.08 3.44 3.44 3.46 Refuse 3.68 3.89 4.15 4.08 4.08 4.09 4.12 3.40 3.58 3.89 Storm Sewer 0.62 0.47 0.47 0.46 0.46 0.46 0.46 0.42 0.42 0.63 Pavilion/Ice Arena 2.37 2.44 2.44 2.90 2.72 3.80 3.80 3.05 2.45 2.40 Art Center - - - - - - - - - - Skate Park 0.38 - - - - - - - - - Housing and Redevelopment 1.90 1.90 1.90 2.40 2.45 2.05 2.05 2.05 2.20 2.20 Total General Government 16.48 15.49 15.75 16.65 16.52 18.23 18.18 15.47 15.20 15.71 Total 118.33 108.28 111.80 110.80 110.69 111.91 112.48 107.99 108.90 108.72 Source: City Finance Office 134 City of Hopkins Operating Indicators by Function/Program Last Ten Years Fiscal Year Function/Program 2003 2004 2005 2006 2007 General Government Elections 12 1 2 1 Registered voters 8,830 11,518 9,708 10,621 8,330 Number of votes cast 909 8,880 2,601 6,279 1,146 Voter participation (registered) 10.3%77.1%26.8% 59.1% 13.80% Public Safety Police Total Calls for Service 17,114 19,648 19,049 18,567 19,137 Sworn Officers 24 25 26 26 26 Traffic Stops 2,813 3,044 2,916 3,321 4,287 Parking Citations 2,705 1,506 1,122 841 747 Fire Fires 52 48 76 59 70 False Alarm 113 103 107 101 70 Fire Runs 329 326 337 297 350 Medical Runs 148 113 121 68 59 Average Response Time (minutes) 5.1 5.3 5.3 5.3 4.3 Inspections Building Permits 498 542 365 494 377 Value of Building Permits $ 40,363,863 $ 34,316,423$ 32,333,498 $ 14,272,117 $ 50,544,210 Public Works Miles of seal coating 44 4 4 3.2 Miles of crack sealing 3.25 3.25 3.25 3.25 2.88 Sidewalk repairs in square feet 2,875 2,875 2,875 2,875 4,279 Alley repairs in square yards 173 157 143 130 253 Culture and Recreation Art Center Bookings 3,551 5,598 5,598 5,570 6,054 Reserved Hours 22,335 36,950 36,950 35,710 39,060 Customer Visits for Events/Activities 174,100 182,800 182,800 202,000 203,000 Water Gallons of water pumped (in millions) 780.0 732.0 744.0 786.0 794.7 Number of well house inspections 2,488 2,488 2,488 2,488 2,488 Number of hydrants flushed 100+100+100+ 100+ 100+ Water Rate $ 1.20 $ 1.40 $ 1.40 $ 1.40 $ 1.40 Sanitary Sewer Sanitary sewage flow (in millions of gallons) 634.3 653.2 647.0 638.0 641.3 Miles of sewer lines jetted n/a14.7 15.0 14.6 17.3 Number of manholes checked/cleaned 262 292 222 262 441 Lift Station Maintenance checks 4,374 4,374 4,374 4,374 4,374 Sewer Rate $ 2.25$2.25$2.25$ 2.50 $ 2.50 Refuse Number of refuse accounts 2,695 2,670 2,673 2,766 2,670 Tons of refuse collected 2,624 2,671 2,643 2,549 2,448 Tons of recycled material (residential) 1,305 1,248 1,185 1,118 1,138 Refuse rate $ 11.00-14.45 $ 11.00-14.45 $12.50-15.90 $ 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 hours 1,487 1,521 1,433 1,443 1,458 Turf use hours 450 464 362 407 442 Mezzanine rental use - 162 351 339 345 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. 135 Schedule 17 Fiscal Year 2,008 2,009 2,010 2,011 2,012 2 1 2 1 2 11,233 9,548 9,393 9,691 10,912 8,835 861 5,761 961 9,130 78.70% 9.10% 61.30%9.90%83.70% 19,440 19,238 19,141 21,257 25,379 26 26 26 26 26 3,042 2,698 2,597 5,231 7,602 647 925 914 865 958 45 38 58 40 36 101 107 98 95 91 291 220 370 331 382 67 56 66 77 141 4 4 4 4 4 897 381 422 631 501 $ 45,074,024 $ 54,688,290 $ 10,968,955 $ 19,211,258 $ 9,804,196 2.60 0.55 0.95 0.85 1.20 4.97 3.71 1.99 7.26 5.55 4,930 6,228 5,252 5,831 5,770 238 142 170 200 201 5,593 5,392 4,913 4,307 4,307 34,760 33,780 30,414 26,406 26,406 212,000 203,100 205,319 219,975 219,975 774 813 794 744 781 2,488 2,484 2,501 2,446 2,480 100+ 130 144 151 142 $ 1.65 $ 1.86 $ 1.90 $ 1.90 $ 1.96 626.2 580.2 567.8 606.5 601.9 14.6 14.2 15.4 14.6 14.7 344 1,290 1,301 1,421 1,337 3,855 4,312 4,310 4,321 4,314 $ 2.70 $ 3.10 $ 3.40 $ 3.60 $ 3.75 2,678 2,689 2,695 2,687 2,681 2,393 2,335 2,298 2,265 2,470 1,080 1,194 1,148 1,222 1,182 $ $13.20 - 17.25 $ $15.85 - 21.85 $ $15.85 - 21.85 $ $16.85 - 23.15 $ $16.85 - 24.30 $ 3.25 $ 3.50 $ 3.75 $ 3.75 $ 4.00 1,469 1,456 1,455 1,407 1,429 479 624 624 758 869 400 495 776 1,150 1,260 136 Schedule 18 City of Hopkins Capital Asset Statistics by Function/Program Last Ten Years Fiscal Year Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 10 10 10 10 11 11 11 11 11 11 Fire Stations 1 1 1 1 1 1 1 1 1 1 Public Works Highways (miles) 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 County Highways 5.69 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 City Streets (miles) 47.13 47.50 47.50 47.50 47.50 47.50 47.50 47.50 47.50 47.50 Alleys (miles) 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 Streetlights 350 360 360 398 398 398 398 398 398 398 Traffic Signals 44 44 44 44 44 44 44 44 44 44 Refuse collection trucks 3 3 3 3 3 3 3 3 3 3 Culture & Recreation Parks Parks 16 16 16 16 16 16 16 16 16 16 Park Trails 3 3 4 4 4 4 4 4 4 4 Park Acres 102 102 104 104 104 104 104 104 104 104 Park Shelters 10 10 10 10 10 11 11 11 11 11 Playgrounds 11 11 11 11 11 11 11 11 11 11 Skateboard Park/Inline Skating 1 1 1 1 1 1 1 1 1 1 Skating Rinks 7 7 7 7 7 7 7 7 7 7 Hockey Rinks 6 6 6 6 5 5 5 5 5 5 Basketball Courts 6 6 6 6 6 6 6 6 6 6 Softball Fields 4 4 4 4 4 4 4 4 4 4 Swimming Beach 1 1 1 1 1 1 1 1 1 1 Tennis Courts 12 12 8 8 8 8 8 8 8 8 Volleyball Courts 2 2 2 2 2 2 2 2 2 2 Watermains Distribution System (miles) 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 Fire Hydrants 560 560 560 560 560 560 560 560 560 560 Storage Capacity (gallons in thous) 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 Water Connections 3,144 3,157 3,163 3,163 3,168 3,168 3,168 3,168 3,168 3,168 Sanitary Sewer Collection System (miles) 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 Sewer Connections 3,064 3,077 3,081 3,081 3,086 3,086 3,086 3,086 3,086 3,086 Storm Sewer Pipe (miles) 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 Parking Parking Lots 7 7 7 7 7 7 7 7 7 7 Parking Ramp 1 1 1 1 1 1 1 1 1 1 Source: Various City Departments 136