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2017 City of Hopkins, MN Budget City of Hopkins, Minnesota Annual Budget January 1 - December 31, 2017 Inspire Educate Involve Communicate City of Hopkins 1010 First St S Hopkins, MN 55343 952-935-8474 www.hopkinsmn.com CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2017 City Council Term Expires Mayor Molly Cummings ................................................................................ December 31, 2017 Councilmember Katy Campbell .................................................................... December 31, 2017 Councilmember Jason Gadd .......................................................................... December 31, 2019 Councilmember Kristi Halverson ................................................................. December 31, 2017 Councilmember Aaron Kuznia ...................................................................... December 31, 2019 Management Team Mike Mornson ......................................................................................................... City Manager Kersten Elverum ............................................................... Director of Planning & Development Ari Lenz .................................................................................... Director of Community Services Christine Harkess........................................................................................... Director of Finance Kelly O’Dea ................................................................................................... Recreation Director Brent Johnson.............................................................................................................. Police Chief Dale Specken................................................................................................................... Fire Chief Steve Stadler ......................................................................................... Director of Public Works This document was developed and compiled by the Finance Department, City of Hopkins CITY OF HOPKINS TABLE OF CONTENTS Introduction/Background City Manager’s Budget Message .................................................................................. 4 Distinguished Budget Presentation Award ................................................................... 8 Organization Chart ....................................................................................................... 9 Community Profile ...................................................................................................... 10 Organization Structure ................................................................................................ 13 Organization Mission Statement, Vision & Goals ....................................................... 14 Financial Management and Policies ........................................................................... 16 Budget Calendar ......................................................................................................... 19 Budget Planning Process ........................................................................................... 21 Fund Structure ............................................................................................................ 22 Budget Overview Authorized and Approved Staffing Levels .................................................................. 26 2016 Summary Budget Information by Major and Non-Major Funds ......................... 28 2016 Budget Summary – All Funds ............................................................................ 29 2016 Revenue Summary – All Funds ......................................................................... 31 2016 Appropriation Summary – All Funds .................................................................. 35 Property Tax Information ............................................................................................ 38 Fund Balance ............................................................................................................. 42 Debt Overview ............................................................................................................ 46 Capital Improvements Overview ................................................................................. 50 General Fund Budget Projection ................................................................................ 56 Other Major Funds Budget Projections ...................................................................... 60 General Fund ................................................................................................................. 64 Special Revenue Funds ................................................................................................ 111 Internal Service Fund .................................................................................................... 136 Enterprise Funds ........................................................................................................... 138 General Debt Service Funds ......................................................................................... 150 Glossary ........................................................................................................................ 151 City of Hopkins 1010 First Street South Hopkins, MN 55343-7573 Phone: 952-935-8574 Fax: 952-935-1834 Web address: www.hopkinsmn.com January 2017 Citizens, Honorable Mayor, City Council City of Hopkins Hopkins, Minnesota 55343 Dear Citizens, Mayor and Council Members: It is my pleasure to present to you the City of Hopkins 2017 Budget. Hopkins’ strong financial position and proactive fiscal management practices allowed options for the City Council to maintain a service delivery at current levels while minimizing the impact on the 2017 tax levy. The final result is an adopted 2017 budget totaling $31,317,549 of which $12,835,312 is the General Fund. This budget lives within the City’s financial resources, meets basic service needs, provides for the maintenance and replacement of the City’s infrastructure, and plans for the future, keeping Hopkins’ good financial condition intact. The Municipal Budget is intended to reflect the goals, objectives, and priorities established by the City Council with input from the residents and taxpayers of Hopkins, and fairly represent the revenues and expenditures necessary to provide the services and programs desired by the community. The city governing body involves its’ citizens and constituents through its mission and vision statement “Inspire • Educate • Involve • Communicate” by: conducting a citizen’s academy, providing a state of the city address, publishing a city annual report, and communicating with the community as often as possible regarding many city initiatives and proposed polices. The budget adoption is a significant way in which the City Council expresses their leadership. The City Council establishes budget goals, which are accurately reflected in this budget. 2017 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs. each of the City’s general fund City of Hopkins Mission Statement Inspire Educate Involve Communicate 4 CITY OF HOPKINS HOPKINS IN 2016 In the year 2016, the nation’s economy continued to recover after several years of minimal growth. The governmental environment was to maintain staff and minimize budget increases. The city continued to provide all core services through 2016. Program budgeting has helped in our analysis of city services, while we look at ways to continue to do more with less. The Council and city staff also continues to investigate additional revenue sources. In 2016, the City’s tax base continued to grow due to several new development projects. Redevelopment of properties in Hopkins helped to increase our tax base. The City's total tax capacity values increased 6.9% due to commercial properties higher tax capacity. In 2016 the overall taxable market value increased by 7.9% due to several recently completed development projects in the city. The city’s levy has increased an average of 4.79% per year over the last five years. The City’s general fund expenditures have increased an average of 3.7% a year over the last five years. This increase is directly related to salary and benefit increases for employees, insurance costs and oil based products. Diligent planning and management has helped in keeping operating expenditures down. The employee compensation has remained competitive in the market for both those with and those without labor contracts. The number of employees has remained stable at 105-112. ECONOMIC OUTLOOK Hopkins is a diverse community made up of a healthy mix of residential, commercial and industrial properties. Super Valu is the largest food wholesaler in the nation. They are a Fortune 500 company that continues to have a strong presence in Hopkins. Another Fortune 500 company with a branch in Hopkins is US Bank. In addition Cargill, the largest privately held company in terms of revenue, has a large corporate campus in Hopkins with three building totaling over 800,000 square feet. Total employment at the three buildings is estimated at 4,000. Hopkins economic outlook has remained relatively stable. The City has expanded its commercial tax base through redevelopment. Hopkins is an inner-ring suburb of Minneapolis with a good mix of 3% residential, 42% commercial and industrial and 22% apartment properties. Hopkins participates fully in the Minneapolis and Hennepin County economies. Hopkins has preserved its central downtown area where development continues because of its highly desirable location. Hopkins wealth levels are above average when compared nationwide. REDEVELOPMENT Significant redevelopment has occurred within the City of Hopkins over the past five years. This redevelopment has contributed substantially towards the increase in property values and by making Hopkins a more desirable place to live and work. Some of the more recent projects are: Redevelopment of a vacant commercial site in downtown Hopkins into a 53-unit luxury apartment and retail development Redevelopment of a small parcel in the downtown district into six luxury townhomes. Redevelopment of a vacant office and clinic site into 163 luxury apartments with retail space Redevelopment of a vacant downtown building into a craft brewery and tap room. Redevelopment of a former office building into 263 high end luxury apartments and retail space. In addition to projects other development continues in Hopkins. This includes new commercial structures on Mainstreet, renovation of older industrial buildings, new residential projects, and more mixed-use projects that incorporate residential and commercial development. Overall, these redevelopment efforts continue to ensure that Hopkins remains a desirable community in which to live and work. 5 CITY OF HOPKINS LONG TERM OBJECTIVES The City Council and staff have established long term objectives for the community and the working environment Increase ratio of residential properties. Maintain the high quality of our livable community. Increase tax base to spread share of tax burden. BUDGET OBJECTIVES FOR 2017 Maintain core City services at a reasonable price for residents and commercial/industrial users. Use program budgeting as a tool for analysis of all programs and services to: look for ways to reduce dependency on the property tax, find greater efficiencies in the provision of current services and programs, compare staffing levels to workloads to assure proper allocation of resources, create greater linkages between revenues and expenses, to allow for more entrepreneurial approaches to non-essential services. Forecast funding needs and tax implications to assure strong long-term financial stability. Continue policy of avoiding the use of fund balances for operating expenses. Recognize and award employees that assist the City in saving money. Evaluate and investigate other sources of revenue. BUDGET CONSIDERATIONS These are areas to consider that may affect the budget during the next few years. State Tax Reform: The state’s ongoing budget challenges will again affect City finances as well as residential and commercial based taxpayers. Property Classification Changes – In the past there has been a tendency to shift some of the tax burden back to residential taxpayers from commercial/industrial taxpayers. Tax Increment Finance – Any changes in property classifications impact property taxes generated by TIF districts. Currently the tax generated in the various districts is projected to be sufficient to cover any debt or liabilities created in the districts. Property Tax Freeze and/or Levy Limits – Levy limits have been on and off again since 2008. This uncertainly poses budget challenges as cities are uncertain if they will again be re- instated. For the 2017 budget year there were no levy limits which give cities more budget flexibility in meeting the needs of their citizens while maintaining essential city services. State Aids – The City of Hopkins no longer relies on significant state aids as a revenue source despite the legislature annually discussing the Local Government Aid (LGA) program and working to modify the program and how funds are allocated to cities. Beginning in 2015 the city is again receiving LGA of about $360,000 annually. Real Estate Values – Overall real estate values in this community were stable for 2017. Despite the market value stability this resulted in an increase in the City’s tax capacity of 6.9 % due to commercial property which has a higher tax capacity than residential properties. Overall, general fund budgeted expenditures will increase by 8.08% in 2017 due in large part to salaries and benefits which included the addition of two police officers. We projected a 2.0% change for 2018 and modest if any increases for future years. Future programs and services provided by the City of Hopkins may change in relation to available revenue sources. The City Council and staff along with their financial advisor will be updating the City’s long-range financial management plan that assists in current and future budgeting. The plan was adopted in 2014 and was implemented for the 2015 budget and is used for budget planning each year. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and sets forth a plan to stabilize all funds. The plan will be updated annually and used in future annual budget preparation. 6 CITY OF HOPKINS Fund Balances for governmental fund types will continue to be strong for the next 3 to 4 years, absent any significant changes in the policy of avoiding the use of fund balance reserves for current expenditures. GAUGING THE CITY The City uses the following performance measures: Tax levy history in relation to the consumer price index. Sample properties – cost per month Comparisons of comparable communities Goal achievement 2017 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, while keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount while at the same time allowing the City enough funds to continue with the level and quality of service it currently has. This has been particularly challenging the last few years as property values declined. The city’s tax capacity rate held fairly steady from 2005 to 2010 at around 48%. When property values started falling in 2010 they affected the tax rate for 2011 through 2012 increasing to 62.417% in 2013. The proposed 2017 city tax rate is 64,136, a 0.231% increase from 2016. The adopted General Fund budget has a 8.08% expenditure increase for a total General Fund Budget of $12,835,312. The total tax levy increase for 2017 is 8.33%. The levy includes funds designated for general fund operations, capital improvements, the Art Center and debt service payments. The monthly city tax cost for a median valued home of $223,000 is about $108.16 or approximately $1,298 for the year not including credits for state programs. The city’s goals and objectives were once again reviewed and updated by city staff, commissions, citizens and the City Council. They are integral part in meeting the needs of the citizens. The 2017 goals and strategic plan are included in the budget document on pages 14-15. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 7 CITY OF HOPKINS The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Hopkins, Minnesota for its annual budget for the fiscal year beginning January 1, 2016. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 8 CITY OF HOPKINS 9 CITY OF HOPKINS COMMUNITY PROFILE The first settlers of Hopkins arrived in 1852; however, the roots of the town begin in 1887 with the building of the Minneapolis Threshing Machine Company, later called Minneapolis Moline. Minneapolis Moline once employed most of the Hopkins residents. The West Minneapolis Land Company was also founded in 1887 and was formed to build housing for the Minneapolis Moline factory workers. In 1893, the Hennepin County Board of Commissioners received a petition signed by 41 residents, asking that the village be formed. Following an election, the community was then incorporated as the village of West Minneapolis. The original village was comprised of three square miles, and it has been enlarged by annexation to its present size of about four square miles. The population at the time of its incorporation was 1,105; today, there are 17,481 people living in Hopkins. In 1928, the name of the village was changed to Hopkins - for Harley H. Hopkins who was among its first homesteaders and was the community's first postmaster. The first mayor was Harley Hopkins' son, Chester L. Hopkins. On January 1, 1948, the village became a city upon adoption of a City Charter with a Council/Manager form of government. The City Council consists of four council members and the mayor. Council members serve four-year terms and are elected at large. The mayor is elected at large for a two-year term. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City’s manager and attorney Hopkins has always had a core business district, and in the center of that early business district was Hopkins City Hall at 8th Ave N and Mainstreet. Completed in 1912, it housed the city's police and jail in the rear portions, and city offices, library and meeting room upstairs. The fire station was on the main level, and the firefighters used horse drawn rigs. The building was remodeled in 1940 to accommodate more fire trucks. That fire station was torn down in 1965 after a new City Hall, Police Station and Fire Station were built at 1010 1st St S. In 2004, a new Fire Station was built on 17th Ave. The Police Department was expanded and remodeled in 2005. In the summer of 1982, the city and its Public Works Department accomplished the challenge of building a city garage on a small area, using as many of the existing structures as possible, doing it within a $475,000 budget, and doing it without disrupting city services. The Public Works facility was expanded and remodeled in 2004. Adjacent to the Public Works facilities is the Hopkins Pavilion, which was built with money from a 1989 park bond referendum. The facility opened in December 1991. It is now one of the premier facilities of its kind in the Twin Cities area, and is used for soccer, lacrosse, in-line roller hockey, skating and ice hockey. The Hopkins Activity Center, a multipurpose community facility, opened in January 1981 at the site of the former South Junior High School. A variety of programs for people of all ages are offered at the Activity Center. It was renovated in 1990, and the facility includes a gymnasium, meeting rooms and kitchen. The Hopkins Historical Society, which was started more than 30 years ago, also is located in the Activity Center. The Hopkins Center for the Arts, 1111 Mainstreet, opened in November 1997. The Arts Center stands as a focal point for arts, culture and entertainment in the Hopkins community, the Twin Cities metro area and the region. It is a community-gathering place where young and old can enjoy high quality, multi- disciplinary cultural arts programs and community activities. The Arts Center includes a theater, a visual arts gallery, multipurpose spaces for rehearsals, community activities and small performances, a visual arts classroom, a dance studio, and kitchen facilities for serving catered food. rd It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival, now in its 83 year. The first festival was organized in 1934 by a group of community business people who were concerned that the Hopkins economy and community needed a boost. 10 CITY OF HOPKINS Minnesota Hopkins is a suburban city in Hennepin County, Minnesota located just 13 minutes west of the Twin Cities of Minneapolis and St. Paul. The City is four square miles in size surrounded by larger suburban communities. Hopkins is about 98% developed with little remaining vacant land. U.S. Route 169 and Minnesota Highway 7 are two of the main arterial routes in the City. Hopkins is a dynamic community of over 18,000 residents. Founded rich in tradition and growth, Hopkins offers the advantages and conveniences of a large City but yet the security of a small town. The residents and the business community have an enormous sense of pride and support for their City. Travel any street and you will see and feel the reflections of pride and vitality. Hopkins has enriched its spirit of community by remaining a place where people are treated with respect; where the community participates in building culture, character and common bonds; where business growth is supported while a vibrant City Center is maintained; where people feel safe, support outstanding schools and celebrate cultural heritages; and where people enjoy quality parks, housing and public services. Through education, inspiration, involvement and communication, the City Council, City Staff, members of the Boards and Commissions, the business district and the neighborhood associations are committed to enhancing the quality of life in Hopkins. Population: 19203,055 19303,834 19404,100 19507,595 196011,380 1970 (census)13,395 1980 (census)15,336 1990 (census)16,534 2000 (census)17,145 2010 (census)17,591 201117,701 201217,939 Summertime in Hopkins 201318,413 at the Clock Tower Plaza 201418,971 201519,227 11 CITY OF HOPKINS CITY STATISTICS: Founded1852School Enrollment8,496 Dated of IncorporationNovember 27, 1893Education Date of Adoption of City CharterDecember 20, 1947 Elementary Schools6 Form of GovernmentCouncil - Manager Middle Schools2 Fiscal Year BeginsJanuary 1 High School1 Area of City4.1 Square Miles Private Schools8 2,616 acres Charter Schools2 Housing Single Family2,759Elections: Multiple Family5,044 Registered Voters - last general election10,418 Duplexes512 Number of votes cast last general election9,198 Townhouses869 Percentage of registered voters voting88% Population by AgeCity Bond Rating 0 to 194,727 Stand & Poor'sAA+ 20 to 6411,208 Over 652,057 Miles of Streets and Alleys: Income by Household Trunk Highways3.57 Less than $25,0001888 County5.32 $25,000 - $50,0002073 City Streets47.5 $50,000 - $75,0001812 Alleys9.52 $75,000 - $100,000768 $100,000 - $150,000843Miles of Sewers: $150,000 - $200,000328 Storm Sewers21.4 $200,000 or more272 Sanitary Sewers45.46 Median Household Income$50,300Miles of Watermains52.6 Per Capita Personal Income$31,600 Civil Defense Warning Sirens3 Unemployment Rate3.6% Fire Protection: Population Composition Number of Stations1 White57.82% Number of FT Employees3 African American17.11% Volunteer Firefighters33 Asian7.69% Hispanic or Latino11.63%Police Protection: Two or More Races4.12% Number of Stations1 Native American0.50% Number of Employees45 Other Races1.13% Parks City Parks16 Playgrounds11 Total Property Values$1.778 billion Skating Rinks7 12 CITY OF HOPKINS ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council-manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four-year term and the mayor serves a two- year term. The city manager of the City is the chief administrative officer of the City. The city manager and the city attorney are selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City’s affairs and therefore, supervises all departments and divisions of the City. The city attorney provides legal and prosecution services for the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer citizens and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. There are also several internal committees comprised of department heads and employees to assist in the management of City operations. These include the Labor Management committee, Employee Management committee, Insurance committee, Safety committee, Wellness Committee and Police Review committee. MISSION, VISION AND GOALS Long-range goals for the City are: Continually enhance partnerships with citizens. o Inspire citizen leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is: o Responsive to the needs of the community. Innovative. Accessible. Short-term goals are reviewed annually by City Council and staff. The discussion begins with the global environment and ends with prioritizing goals for the near future. Below are the mission, vision and short- term goals for the City along with the strategies and action steps needed to implement them. The budget is developed using the three main goals along with the strategies as guidance. Departments then use the action steps in setting individual departmental goals and budgets so that resources are available to achieve the action steps identified. 13 CITY OF HOPKINS 14 CITY OF HOPKINS 15 CITY OF HOPKINS FINANCIAL MANAGEMENT AND POLICIES The City of Hopkins Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices, policies and year- end reporting. BASIS OF ACCOUNTING The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for City funds. The exception is the proprietary funds, which are on full accrual. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City’s financial statements as included in the City’s Comprehensive Annual Financial Report at the fund statement level. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The City implemented Governmental Accounting Standards Board (GASB) Statement No. 34 for the year ending December 31, 2003. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City operates on a calendar fiscal year and reports its year-end financial position in a Comprehensive Annual Financial Report (CAFR), prepared by the City’s Finance staff. Copies of the 2016 CAFR will be available to the public upon completion in May 2017 and a summary of the results will be published in the official newspaper. The 2016 CAFR will be audited by the independent auditing firm of CliftonLarsonAllen, LLP to insure accuracy and compliance with federal and state laws and regulations. State law provides that the City may arrange for an examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor or by Certified Public Accountants. It has been a long-standing policy of the City to provide for a complete annual audit of the City records by independent Certified Public Accountants. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Hopkins for its CAFR for the fiscal year ended December 31, 2015. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY The City annually develops a 5-year plan for capital improvements and updates it annually. The five-year budget capital improvement will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete CIP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each capital project proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed project. The City will make all capital improvements in accordance with the adopted capital improvement program or as amended by the City Council. Capital purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. 16 CITY OF HOPKINS EQUIPMENT REPLACEMENT PLAN (ERP) POLICY The City annually develops a 5-year plan for equipment replacement and updates it annually. The five- year budget equipment replacement plan will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete ERP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each equipment proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed equipment purchase. New pieces of equipment not previously in the equipment replacement plan must first be financed through the departmental budget and will be placed in the equipment replacement plan the year following the purchase. The City will make all equipment purchases in accordance with the adopted equipment replacement plan or as amended by the City Council. Equipment purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its equipment assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. BUDGETARY AND FINANCIAL CONTROL POLICIES The council shall have full authority over the financial affairs of the City. City manager shall control and direct the administration of the City's affairs. The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. The manager will prepare and submit to the council at the end of the fiscal year a complete report on the finances and administrative activities of the City for the preceding year; and keep the council advised of the financial condition and future needs of the City. The annual budget shall provide a complete financial plan for the budget year by fund. The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The city clerk shall be the chief purchasing agent of the City. The City will maintain an investment policy that invests available funds to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines.Any money in any fund belonging to the City, or any branch thereof, may be invested by the city manager according to policies adopted by the City Council. The finance director shall be the chief accounting officer of the City and shall submit to the council a statement each month containing information relative to the finances of the City as the council may require. Each year the finance director shall submit a report to the council, no later than June 30, covering the entire financial operations of the City for the past year. This report shall follow the style and form, as far as practicable, prescribed for annual City financial reports and copies will be made available to interested parties. BUDGET CONTROLS Budgets are complete financial plans for the future by fund, showing all proposed expenditures and estimates of all anticipated revenues. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. The budget is a public record open to public inspection. The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by resolution. BALANCED BUDGET – It has been City policy to annually approve a balanced General Fund budget. A balanced budget is a budget in which expenditures are equal to income. Other City funds may or may not have a balanced budget depending on when funding is received for specific expenditure needs. For example a grant may be budgeted for expenditures that may overlap years. Thus all revenues would be in one year and the expenditures would be in multiple years. 17 CITY OF HOPKINS BUDGET BASIS – Governmental budgets are prepared on the modified accrual basis and enterprise budgeted on an accrual basis. Budgets are estimates and may be amended under the following guidelines. PREPARATION OF THE ANNUAL BUDGET – The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET – The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET – Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET – Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re-appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc… For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. 18 CITY OF HOPKINS The City follows the procedures below in establishing the budget. 1. The city manager and finance director submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. a. The operating budget includes proposed expenditures and the estimated revenues for the general fund, specified special revenue funds requested by City Council, enterprise funds, internal service funds and debt service funds. b. Capital project funds for the City are not budgeted annually but are included in the Capital Improvement Plan approved by the City Council. Capital projects are approved by the City Council on a per project basis. 2. Public hearings are conducted to obtain taxpayer comments. 3. The general fund budget is enacted through passage of a resolution. BUDGET CALENDAR April-MayMeet with Council to set parameters and goals for 2017 budget process June (1st week)Distribute budget worksheets to departments June (3rd week)Departmental budgets to be completed and returned to finance June (4th week)Finance reviews and compiles budget summary July (1st week)City Manager & Finance to meet with departments to review budgets July - AugustCouncil work sessions to review budgets September 6City Council adopts preliminary levy and budget September 7Proposed 2017 budget and levy certified to Hennepin September/OctoberSpecial Revenue & Enterprise budgets presented to Council for review and approval December 6Budget public hearing and final budget approval and tax levy certification December 7Final 2017 levy certification to Hennepin County INTERNAL CONTROLS In developing and altering the City’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use of disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. the concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and the benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. CASH MANAGEMENT The investment portfolio of the City is designed to attain an average rate of return regularly exceeding the average return on three month US Treasury Bills, while seeking to augment returns above this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent investment principles. Portfolio diversification is considered so that investments are not concentrated in one institution, in one type of investment, or purchased from one dealer. Pursuant to this policy, cash temporarily idle during the year was invested in those investments authorized by law RISK MANAGEMENT The City has an informal risk management policy, the purpose of which is to maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. The City has insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) to ensure City property, contractors and miscellaneous equipment, crime, employee performance bonds, autos and general liability. General liability coverage amounts to $1,000,000 per occurrence (and aggregate), with a $20,000 per occurrence, $40,000 aggregate deductible. 19 CITY OF HOPKINS DEBT The City will confine long-term borrowing to capital improvements, equipment or projects that have a life of more than 5 years and cannot be financed from current revenues. The City may issue debt for its Permanent Revolving fund, which pays for any improvement in which part of the cost of the improvement is to be assessed against the benefiting properties. The City may also issue revenue bonds that are paid back directly from revenue sources other than debt levies. The City may submit to voters the proposition of issuing debt for any public purpose not prohibited by law, and issue the debt upon a favorable majority vote. Whenever possible, the City will use revenue (including G.O. backed revenue) or other self- supporting type bonds instead of general obligation bonds. The City will maintain frequent and regular communication with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The City will comply with Securities Exchange Commission (SEC) reporting. The City will keep the total maturity length of general obligation bonds below 25 years. In all cases the maturity shall be shorter than the life of the related assets. Net general obligation debt (as defined above) will not exceed 3% of the estimated full market value of taxable property in the Cit as required by Minnesota Statutes Section 475.53. The City may issue emergency bonds to pay for extraordinary expenditures or to cover a shortfall in revenues for budgeted expenditures. Emergency bonds must mature within ten years of issuance. One tenth of the amount is to be levied the first year following issuance and one tenth every year there after for ten years. FUND BALANCE The City believes that sound financial management principles require that sufficient funds be retained by the City to provide a stable financial base at all times. To retain this stable financial base, the City needs to maintain a General Fund Balance sufficient to fund all cash flows of the City, to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature, and to provide funds for all existing encumbrances. The following individual items shall constitute the City General Fund Balance: Restricted Fund Balance – The restricted fund balance category includes the portion of o thespendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes Committed Fund Balance – The committed fund balance classification includes the o portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to year end but the amount can be determined at a later date. Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund o balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. The authority to “assign” fund balance is delegated to the City Finance Director Unassigned – This is the residual classification for the government’s General Fundand o includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. These are the current resources available for which there are no government self- imposed limitations or set spending plan. Although there is generally no set spending plan for the unassigned portion, there is a need to maintain a certain funding level. Unassigned fund balance is commonly used for emergency expenditures not 20 CITY OF HOPKINS previously considered. In addition, the resources classified as unassigned can be used to cover expenditures for revenues not yet received. The Council recognizes that any such funds should be appropriated for non-recurring expenditures as they represent prior year surpluses that may or may not materialize in subsequent fiscal years POLICY - At the end of each fiscal year, the City will strive to maintain Spendable – Unassigned portions of the fund balance for Cash Flow equivalent to a minimum of five (5) months or 42% of the prior fiscal year General Fund operating expenditures. In addition to cash flow needs this accommodates emergency contingency concerns. MONITORING AND REPORTING - The City Manager and Finance Director shall annually prepare the status of fund balances in relation to this policy and present to the City Council in conjunction with the development of the annual budget. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1.) committed 2.) assigned and 3.) unassigned. A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. BUDGET PLANNING PROCESS The City has developed a number of elements that when been brought together help to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Department Directors then use these goals in developing departmental goals and setting departmental budgets. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. For programs whose goal is to be supported totally by revenues it allows departmental managers to review the fee structure on an annual basis to ensure that goal is met. It also allows the public to determine what portion of a specific department is supported by taxes. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Monitoring tax capacity along with budget needs provides advance notice to management when taxes may rise faster than advisable and allows staff to take appropriate action in revising budget goals and projections. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting in keeping all funds in a positive cash position. Financial Management Plan – In 2014 the City adopted a long-range Financial Management Plan for the years 2015-2024 that addresses financing challenges for several funds, sets forth financing for all items identified in the Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP) (described below), and provides for adequate funding for operational needs in the general, special revenue funds and enterprise funds. Tax base growth is built into the plan so the taxes are indexed each year based on that growth. This plan when followed should make the annual budget much easier to develop. 21 CITY OF HOPKINS The Financial Management Plan will be updated each year prior to the budget process and used as a guide in preparing the annual budget. This document is key in managing increases in the General Fund, restoring the Art Center Fund to sound financial footing and providing adequate resources for the Pavilion Ice Arena that will need significant capital improvements in 2020. The Financial Management Plan was developed by staff with assistance from the City’s Financial Advisor who will assist staff in annual updates to the plan to ensure the goals of the City continue to be met. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. The council when setting the tax levy is sensitive to its impact on property owners and this benchmark provides information on how the recommended levy will impact city taxpayers. If the council feels the proposed levy will negatively impact property owners options for reducing the levy are explored. These may include revenues alternatives or expenditure decreases or a combination of both. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs and demonstrates which city programs are most each of the City’s general fund dependant on taxes. It also provides information to the public on what benefits they receive for their tax dollars. The Capital Improvement Plan (CIP) is a five-year schedule or plan Capital Improvement Plan – for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. Equipment Replacement Plan – The Equipment Replacement Plan (ERP) is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $992,400. Revenues for the ERP are derived from charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. FUND STRUCTURE The accounting system maintains a standard fund structure for a typical Minnesota city government. Following is a description of the funds included that are subject to appropriation, for which financial plans and budget appropriations are prepared annually. These funds are the General, Special Revenue, Debt Service, Capital Projects and Enterprise. General Fund The General Fund accounts for all financial transactions not properly accounted for in any other fund, including most of the basic governmental services. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, parks and public works, recreation, planning, engineering and general government. 22 CITY OF HOPKINS Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains fifteen Special Revenue Funds. There are thirteen budgeted Special Revenue Funds. Chemical Assessment Team Fund – grant funds received from the state restricted for the operation of the Chemical Assessment Team. Economic Development Fund – revenue sources include interest on loans, taxes, development fees that are used for expenditures relating to housing and redevelopment projects throughout the city. Tax Increment Funds (6) – tax increment revenues for housing and economic redevelopment projects throughout the city. Parking Fund – parking permits and parking violation fees help support the maintenance of the cities current parking lots and ramps. Communication Fund – franchise fee for cable TV supports cable and communications efforts of the city. Depot Coffee House Fund – grants, leases and concession revenues support a local chemical free teen center and coffee house. Art Center Fund – leases, state aids, contributions and program sales support the Hopkins Center for the Arts, which is a community-based center with theater and art at its base. Some of the Special Revenue Funds do not require an annual financial plan because of the nature of the type of revenue and expenditure. Expenditures are authorized on an individual basis. Hennepin County CDBG Fund – block grant funds used for housing and infrastructure improvements Debt Service Funds Debt service funds account for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City maintains 20 individual debt service funds for the various bond issues. The City has established annual financial plans for all 20 general obligation bond funds, which are shown in total as the GO Debt Service Funds. Capital Project Funds Capital project funds account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has five budgeted funds in this category: Park Improvement Fund – development and improvement of City parks. Revenue is primarily from park development fees paid by developers. State Aid Construction Fund – revenue from state aid to assist with maintenance and construction of state aid streets throughout the city. Capital Improvement Fund – transfers from other funds to cover future improvements or maintenance of city facilities and infrastructure. Permanent Improvement Revolving Fund – bonds issued to fund reconstruction and maintenance of residential streets throughout the city. 23 CITY OF HOPKINS Enterprise Funds Enterprise funds account for our business-type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has five Enterprise funds. Water Utility Fund – water utility fees based on water usage, which covers the expense of distributing water and maintaining the water system infrastructure. Sewer Utility Fund – sewer utility fees based on water usage, which covers the expense of disposing of sewer products and maintaining the sewer system infrastructure. Refuse Utility Fund – refuse fee based on size of refuse container, which covers the expense of disposing of refuse products. Storm Sewer Utility Fund – storm sewer utility fee based on non-permeable surface of property for commercial or a fixed rate for residential properties, which covers the expense of maintaining the storm sewer infrastructure throughout the city. Pavilion/Ice Arena Fund – rental fees for ice or space, which covers the operating costs of running the facility. Internal Service Funds Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost reimbursement basis. The City has three Internal Service Funds and no budgets are prepared for these funds. Equipment Replacement – revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. Employee Benefits – to account for compensated absences of non-enterprise employees Insurance Risk – accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. Major Funds For 2017 the City identifies the following funds as major funds which are described above. All major funds are budgeted. General Fund Economic Development Special Revenue Fund Arts Center Special Revenue Fund Permanent Improvement Capital Projects Fund G.O. Housing Improvement Refunding Bonds of 2009B Debt Service Fund Water Utility Enterprise Fund Sewer Utility Enterprise Fund Storm Sewer Utility Enterprise Fund Public art in the downtown area 24 CITY OF HOPKINS City Personnel by Function Administration of Fund GeneralPublicCommunityCommunity Operating FundGovernmentFinancePoliceFireWorksDevelopmentServicesRecreation General Fund AdministrationXXX FinanceX Community ServicesX Building MaintenanceXXXX InspectionsX PoliceX FireX Public WorksX RecreationX Activity CenterX Planning & ZoningX Community DevelopmentX Special Revenue Funds Economic DevelopmentX ParkingXX CommunicationX Depot Coffee HouseX Art CenterX Enterprise Funds WaterX SewerX RefuseX Storm SewerX PavilionX Housing & RedevelopmentX Employees volunteering at the annual Mayor Molly Cummings being sworn in as Thanksgiving luncheon for seniors at the the new mayor for 2016-2018. City’s Activity Center. 25 CITY OF HOPKINS Authorized and Actual Staffing Levels Full-Time and Regular Part-Time Positions 1 FTE = an employee who works 40 hours a week 20142015201620172017 Authorized Authorized Authorized & Actual& Actual Authorized Actual Administrative Services5.005.005.055.505.05 Finance4.604.604.005.005.00 Municipal Building1.451.451.451.451.45 Community Services9.709.688.657.207.20 Police34.5035.5036.7838.4536.45 Fire1.251.253.253.253.25 Public Works17.0917.0917.5818.0919.09 Skate Park0.050.050.050.050.05 Activity Center3.203.203.253.203.20 Zoning & Planning1.351.351.351.351.35 Community Development0.850.851.500.850.85 General Fund Total79.0480.0282.9184.3982.94 Economic Development1.601.601.251.601.60 Parking0.720.720.720.720.72 Communications 0.250.250.751.251.25 Depot Coffee House5.255.255.255.255.25 Art Center3.804.304.304.304.30 Special Revenue Fund Total11.6212.1212.2713.1213.12 Water3.133.432.603.433.43 Sanitary Sewer3.463.763.403.763.76 Refuse3.893.894.094.094.09 Storm Sewer0.630.630.430.630.63 Pavilion/Ice Arena2.402.902.902.902.90 Housing & Redevelopment2.202.202.402.402.40 Total Proprietary Funds15.7116.8115.8217.2117.21 Total All Funds106.37108.95111.00114.72113.27 In 2017 the 1.45 position difference between authorized and actual staffing is due to staff vacancies. Due to a significant number of retirements the City has taken the opportunity to review staffing and make operational changes before moving forward with any new hires. Currently there are openings in the polilce department. The increase in actual staffing from 2016 to 2017 of 3.72 is due to adding two full-time police officers, adding one full-time position to public works and bringing the part-time Pavilion administrative staff to full- time. Other minor changes included shifting responsibilities of various personnel between departments which resulted in staffing count changes in those departments. 26 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Major Funds Debt Capital Special RevenueProjectServiceEnterprise Tax Increment Taxable District - Permanent Houing Storm General Economic Entertainment Arts Improvement Bonds of Water Sewer Sewer Function FundDevDistrictCenterRevolving2009BUtilityUtilityUtility General GovernmentXXXXXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingXX Culture and RecreationXX Capital OutlayXXXXX Debt ServiceXXXX WaterX SewerX Storm SewerX Non-Major Funds SpecialCapitalDebt FunctionRevenueProjectsServiceEnterprise General GovernmentXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingX Culture and RecreationX Capital OutlayXX Debt ServiceX RefuseX Hopkins Citizen’s Academy participants engage in Police, Planning and Economic Development, and fire exercises. The Citizens Academy, a five week program held annually in March allows citizens to get a better understanding of how their City government works. The Academy covers the topics of, Our Government, Police, Fire, Public Works and Planning & Economic Development. The program has been well received by the community with over 25 participants each year. 27 CITY OF HOPKINS Summary Budget Information – Major Funds and Non-Major Funds by Fund Type 2015201620162017Budget ActualActualBudgetBudgetDifference%age REVENUES General Fund$ 11,534,162$ 11,875,73012,295,267$ 12,835,312$ 959,582$ 8.08% Special Revenue Funds Economic Development Fund$ 698,288$ 673,454$ 356,113$ 381,200$ 7.04%25,087 Arts Center$ 777,392$1,128,656$ 787,108$ 935,734$ 18.88%148,626 Non-major Special Revenue Funds3,861,554$ $4,329,829$ 3,813,082$3,425,849$ (387,233)-10.16% Capital Project Funds Permanent Improvement Fund2,067,658$ $5,701,023$ 1,641,537$ 3,603,842$ 1,962,305119.54% Non-major Capital Project Funds$ 2,791,356$2,522,008$ 1,997,696$ 2,971,893$ 48.77%974,197 Debt Funds Taxable Housing Bonds of 2009B410,890$ $ 407,750$ 407,000$ 408,403$ 0.34%1,403 Non-major Debt Service Funds$ 21,893,151$ 3,708,64416,275,273$ $ 4,708,309$ 26.96%999,665 Enterprise Funds Water Utility Enterprise Fund$ 1,513,774$2,353,545$ 1,553,500$ 2,209,405$ 42.22%655,905 Sewer Utility Enterprise Fund2,117,430$ $2,159,368$ 2,277,200$ 2,932,504$ 28.78%655,304 Storm Sewer Enterprise Fund$ 811,842$ 885,483$ 804,000$ 810,200$ 0.77%6,200 Non-major Enterprise Funds$ 1,344,023$1,430,853$ 1,433,267$ 1,411,500$ (21,767)-1.52% EXPENDITURES General Fund$ 11,228,522$ 11,875,73012,193,140$ 12,835,312$ 959,582$ 8.08% Special Revenue Funds Economic Development Fund$ 425,682$ 704,721$ 176,600$ 210,447$ 19.17%33,847 Arts Center$ 763,815$ 923,926$ 903,667$ 1,234,505$ 36.61%330,838 Non-major Special Revenue Funds1,714,551$ $4,757,462$ 2,336,935$ 2,737,544$ 17.14%400,609 Capital Project Funds Permanent Improvement Fund1,623,431$ $7,921,516$ 2,630,973$ 3,898,728$ 1,267,75548.19% Non-major Capital Project Funds$ 2,679,632$1,446,959$ 2,992,500$1,653,847$ -44.73%(1,338,653) Debt Funds Taxable Housing Bonds of 2009B328,893$ $ 327,717$ 325,500$ 322,566$ -0.90%(2,934) Non-major Debt Service Funds$ 20,252,119$ 3,587,05020,058,099$ $ 7,508,621$ 3,921,571109.33% Enterprise Funds Water Utility Enterprise Fund$ 1,473,094$2,003,003$ 1,693,261$ 1,890,915$ 11.67%197,654 Sewer Utility Enterprise Fund2,079,356$ $2,432,556$ 2,607,944$2,670,897$ 2.41%62,953 Storm Sewer Enterprise Fund$ 880,210$ 608,470$ 504,496$ 497,049$ -1.48%(7,447) Non-major Enterprise Funds$ 1,289,931$1,389,452$ 1,395,450$1,409,693$ 1.02%14,243 Major Funds are in bold type 28 CITY OF HOPKINS Summary of Budgeted Funds GENERAL FUND 2015201620162017Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes9,113,565$ 9,544,396$ 9,796,951$ 10,366,866$ 569,915 5.82% Intergovernmental1,043,085 1,061,205 891,954 1,028,426 136,472 15.30% Licenses, Permits & Fines706,791 900,057 575,775 700,825 125,050 21.72% Charges for Services285,911 406,998 188,900 215,650 26,750 14.16% Miscellaneous84,420 76,276 132,150 233,545 101,395 76.73% Franchise Fees300,390 306,335 290,000 290,000 - $ 12,295,26711,534,162$ 11,875,730$ 12,835,312$ 959,582 8.08% APPROPRIATIONS Council82,266$ 90,417$ 79,708$ 82,898$ 3,190 4.00% Administrative Services523,849 560,494 531,969 629,648 97,679 18.36% Finance359,990 324,222 276,993 282,658 5,665 2.05% Legal156,835 196,904 150,000 150,000 - Municipal Building 319,352 367,667 333,611 346,732 13,121 3.93% Community Services1,025,383 1,131,565 1,089,843 1,146,560 56,717 5.20% Police4,515,389 4,739,512 4,737,734 5,095,102 357,368 7.54% Fire1,038,292 1,174,801 1,105,110 1,176,532 71,422 6.46% Public Works2,332,905 2,635,037 2,580,621 2,800,935 220,314 8.54% 5.51%34,884 Recreation604,955 569,136 632,894 667,778 Planning 134,289161,331 153,872246,877 60.44%93,005 Community Development90,387 90,541 121,875124,820 2,9450% Unallocated 44,630 151,513 81,500 84,772 4.01%3,272 $ 12,193,14011,228,522$ 11,875,730$ 12,835,312$ 959,582 8.08% SPECIAL REVENUE FUNDS 2015201620162017Budget ActualActualBudgetBudgetDifference% age REVENUES Chemical Asses. Team$ 77,731$ 90,780$ 60,000$ 60,000$ - Economic Development698,288 673,454 356,113381,200 25,0877.0% Parking 137,820575,755 138,000144,500 4.7%6,500 Communication 272,573290,725 257,000269,200 12,2004.7% Depot Coffee House 376,057375,196 344,100348,000 1.1%3,900 Art Center 777,3921,128,656 787,108935,734 148,62618.9% Tax Incr Financing (7 funds)2,997,373 2,997,373 3,013,9822,604,149 (409,833)-13.6% $ 5,337,234$6,131,939$ 4,956,303$4,742,783$ (213,520)-4.3% APPROPRIATIONS Chemical Assess. Team$ 97,568$ 97,088$ 60,000$ 60,000$ - Economic Development425,682 704,721 176,600210,447 19.2%33,847 Parking 201,214532,242 359,600110,928 (248,672)-69.2% Communication 228,2642,923,456 223,773289,747 29.5%65,974 Depot Coffee House 351,552368,723 338,142343,036 1.4%4,894 Art Center 763,815923,926 903,6671,234,505 330,83836.6% Tax Incr Financing (7 funds)835,953 835,953 1,355,4201,933,833 578,41342.7% $ 2,904,048$6,386,109$ 3,417,202$4,182,496$ 765,29422.4% 29 CITY OF HOPKINS PROPRIETARY FUNDS 2015201620162017Budget ActualActualBudgetBudgetDifference% age REVENUES Water1,513,774$ 2,353,545$ 1,553,500$ 2,209,405$ 655,905$ 42.2% Sanitary Sewer2,117,430 2,159,368 2,277,200 2,932,504 655,304$ 28.8% Refuse955,602 1,013,134 981,167 1,007,400 26,233$ 2.7% Storm Sewer811,842 885,483 804,000 810,200 6,200$ 0.8% Pavilion/Ice Arena388,421 417,719 452,100 404,100 (48,000) -10.6% $ 6,829,2495,787,069$ 6,067,967$ 7,363,609$ 1,295,642$ 21.4% APPROPRIATIONS Water1,473,094$ 2,003,003$ 1,693,261$ 1,890,915$ 197,654$ 11.7% Sanitary Sewer2,079,356 2,432,556 2,607,944 2,670,897 62,953 2.4% Refuse838,057 949,173 940,973 948,876 7,903 0.8% Storm Sewer880,210 608,470 504,496 497,049 (7,447) -1.5% Pavilion/Ice Arena451,874 440,279 454,477 460,817 6,340 1.4% $ 6,433,4815,722,591$ 6,201,151$ 6,468,554$ 267,403$ 4.3% DEBT SERVICE FUNDS (all funds) 2015201620162017Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes1,530,837$ 1,876,459$ 2,799,325$ 2,581,352$ (217,973)$ -7.8% Special Fees828,529 829,065 909,355 973,952 64,597 7.1% Miscellaneous453,427 475,534 15,687 16,160 473 3.0% Proceeds from Bond Sale18,735,000 12,310,000 - - - #DIV/0! Operating Transfer In756,248 1,191,965 391,277 1,545,248 1,153,971 294.9% $ 16,683,02322,304,041$ 4,115,644$ 5,116,712$ 1,001,068$ 24.3% APPROPRIATIONS Bond Principal8,570,000$ 3,075,000$ 3,075,000$ 3,080,000$ 5,000$ 0.2% Bond Interest617,988 814,199 814,199 1,048,639 234,440 28.8% Miscellaneous other charges336,430 425,095 23,351 24,000 649 2.8% Deposit to Escrow Agent3,937,887 7,305,660 - 3,678,548 3,678,548 #DIV/0! Transfer out7,118,707 8,765,862 - - - #DIV/0! $ 20,385,81620,581,012$ 3,912,550$ 7,831,187$ 3,918,637$ 100.2% 11.3% Total Revenues44,962,506 41,939,478 27,015,644 30,058,416 3,042,772 Total Appropriations40,436,17345,398,54625,406,63331,317,5495,910,91623.3% Use of Equity or Fund Balance4,526,333(3,459,068)1,609,011(1,259,133)(2,868,144)-178.3% 30 CITY OF HOPKINS APPROVED BUDGET SUMMARY – ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. Property Taxes: One purpose of the budget is to communicate the financial plans for the City and its allocation of resources. The budgeted revenues for all funds total $28,390,123. The largest source of revenue by category is property taxes of $16,076,118 comprising 56% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits have been on again and off again since 2004and remain off for 2017. Levy limits while providing assurances to taxpayers do give the City the additional challenges in meeting citizen’s requests for sustained services or in some instances increased services. In 2017 budgeted taxes increased in total by 8.33% primarily as a result of new G.O. debt and an increased levy for the Arts Center and capital projects. The General Fund had a 5.87% increase in the levy due to increases in expenditures that were not offset by other revenue sources. Intergovernmental Revenues: Total $1,215,023 or LƓƷĻƩŭƚǝĻƩƓƒĻƓƷğƌ 4.28% of the City’s revenues. The City currently receives highway funding, police and fire aid, wĻǝĻƓǒĻ chemical assessment grants, PERA aid, fire grants, $2,000,000 Community Development Block Grant funds and other miscellaneous state grants. Estimates for intergovernmental revenues are based on known $1,500,000 revenue sources and projections are based on information from the various state and county $1,000,000 agencies from which the revenues are received. The city has reduced it reliance on revenues from state $500,000 and federal governments due to decreased 2014201520162017 availability and reduced funding in the various state programs. Over the past several years the city has been successful in getting grants for specific projects. Those projects are not budgeted due to the uncertainty in the success of our application for those funds. In 2014 the City once again received local government aid (LGA) from the State. This revenue sharing program has undergone many changes over the years with Hopkins last receiving funds under this program in 2002. In 2017 we are scheduled to receive $423,916, a $9,900 increase from 2016 that will go to the General Fund and is utilized to reduce the general fund tax levy. In 2016 the City received several grants that were not part of the budget and helped fund specific programs. Those programs are not expected to continue in 2017. The City’s policy is to only budget for grants that have been approved before the budget is adopted as there is no guarantee of the award. 31 CITY OF HOPKINS Utility Fees: For water, sewer, refuse and storm sewer account for $6,746,309 of the City’s revenue or 23.76%. In 2016 a utility rate study was completed for the water, and sewer funds looking at anticipated revenues, expenditures and planned capital improvements. The rate structure for each fund was then adjusted to meet those needs. Tiered rates for water were implemented per MN Department of Natural Resources requirements that specify that water rates must be structured to promote conservation. Sewer rates remain at one tier for all users. As a result of the rate study water and sewer rates were increased on average 40% for 2017 to provide for operations and planned infrastructure improvements over the next several years. In the past Hopkins water rates were in the lowest one third for all metro cities. The rate study is a 5-year plan that provides for smaller rate increased in years 2-4, however only rates increases for 2017 have been adopted. The rate study will be reviewed in 2017 to ensure we are on track and adjusted accordingly for future years. Charges for Services: Other than utilities are $2,010,836 or 7.08% of the City’s revenues. The City charges for plan reviews, special police or fire services, parking permits for city parking facilities, facility rental, concessions and ice time. A large portion of the charges for services include plan review fees from building permits which are on the rise again with new development. The variance in revenues between years is due to development projects and the related plan review fees. Finance relies on plan review fee projections prepared by the City’s Building Official and input from departmental managers on the level of activity expected in their departments when setting the budget for this revenue category. While there are several other development projects on the horizon the City budgets conservatively on plan review fee income due to the uncertainty of the development market which can change depending on developers funding for their proposed projects. Special Assessments: and Special Assessment Fees for housing projects are $973,952 or 3.43% of City revenues. Special Assessments are levied for street, sidewalk, alley, water, sewer or storm sewer improvements that benefit private property. Special Assessment fees are assessed every year to the specific housing properties that benefited from the development projects. These projects allowed the City to improve the value of the housing stock in several townhome and condominium developments. Special assessment revenues fluctuate with the number and amount of assessable projects and have remained relatively stable the last few years. In 2014 the City received a large number of pre-payments on 15-year special assessments scheduled to go on the taxes for 2015 As a result of the pre-payments revenues in future years will be reduced. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. Special assessments revenue will increase for 2017 due to a larger street project completed in 2016 with first assessment due in 2017. 32 CITY OF HOPKINS Permits, Licenses and Fines: are $722,825 or 2.55% of revenues. Permit revenues are dependent on the economy and on future development of the City. In 2014 due to several large commercial redevelopment projects the City had a very strong years in building permit income. While there are other projects in the works the City chooses not to rely on that income until it becomes reality, therefore building permit income continues to be budgeted conservatively based on an average of the past 10 years. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects. License revenue is based on the types of businesses licensed by the city and past year’s collections. Those revenues remain stable. The City also budgets conservatively for fine revenue as that revenue stream is unpredictable. Fine revenue is only received once the fines are collected by the State of MN which then remits Hopkins’ portion to them. Parking permits and ticket revenues remain stable. Franchise Fees: In addition to the franchise fee collected on cable television, a franchise fee on electric and gas utilities was implemented in 2004 to help offset the loss of state aids. It impacts residential properties by $2.20 per month on both the electric and gas utility bills. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in 2017 will be about $533,000 or 1.95% of City revenues. While franchise fees on electric and gas remain stable there is federal legislation that may limit the future of cable TV franchise revenues and therefore a more conservative approach was taken to that portion of the franchise fee budget. In 2012 and 2013 due to changes in local government programming the City received additional cable franchise fees for public, education and government (PEG) programming. While we anticipate receiving PEG fees in 2017 we do not know the exact amount so have set the budget conservatively. PEG fees received are restricted in use to provide public access to city council and other public meetings. The city is currently using the funds to provide live streaming of city council and other public meetings and to archive the meetings for future public web streaming access on the city’s website. Total 2016 Actual Revenues: Increased from 2015 as a result of increased tax revenues and miscellaneous revenues from sale of storm water credits. The 2017 budget was prepared with increased tax and utility revenues as described in previous revenue sections. The City workforce has remained stable with many long-term employees. Like other cities we continue to do more with less and work to maximize the budget dollars we do have to work with. Staff has been very conscientious in the management of departmental budgets which has allowed us to maintain staffing while providing the same level if not better services to the public. 33 CITY OF HOPKINS Major Revenue Trends: Shown to the right is a chart showing the trends of three of our major revenue sources. Taxes include both property taxes and tax increments. Taxes continue to increase as other sources of revenue decrease and new tax increment projects come on the tax rolls. Intergovernmental revenues have declined over the last several years; however we were successful in receiving federal COPS grant, a fire prevention and safety grant along with Local Government Aid. Intergovernmental revenues are less reliable so the city has been decreasing its dependence on that source of income. Tax revenues have risen to fill that gap; however we continue to seek other revenue sources to meet out budget needs which include grants. Shown below is a chart showing the relationship between all revenue sources. ЋЉЊА.ǒķŭĻƷĻķwĻǝĻƓǒĻƭ OtherSources UtilityCharges 0% 24% FranchiseFee 2% Chargesfor Services 7% Interest 0% License,Permits &Fees PropertyTax 3% 57% SpecialAssm Intergovt'l 3% 3% 34 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $31,317,549. This is more than anticipated revenues for 2017 and results in a decrease of fund balance of $1,259,133 overall as funds on hand are used for planned projects and a bond call scheduled for February. The special revenue funds will add $560,287 where certain funds such as the parking fund and arts center fund are working to rebuild fund balance and tax increment revenues exceed current needs and $895,055 is from enterprise funds as we work to rebuild fund equity and bring the water and sewer fund to a more stable financial position. Debt service funds will see a decrease of $2,714,475 primarily due to the scheduled bond call. The largest source of appropriations by category is employee salaries and benefits at $12,131,210. Employee salary and benefits make up 38.74% of the City’s annual appropriation and represent a 6.67% increase from 2016 actual. In 2017 employees received a 3 increase with 1-year union contracts. Other factors impacting salaries and benefits are 3 new full-time employees, increasing health care insurance costs and state mandated pension contributions. Also contributing to the increase is scheduled step increases as employees gain experience and receive various accreditations. Materials, supplies and services make up 24.8% of appropriations at $7,312,538. This amount represents a 5.83% decrease from 2016 actual. The decrease is due to a decrease in the use of professional and contractual and project based expenses in the Economic Development fund. The costs in this category comprise of consulting, professional services, office and general supplies, disposal costs, expenditure reimbursements and general operating costs. Capital outlay and improvements can fluctuate substantially every year. In 2017, the appropriated amount is $456,400 or 1.46% of total appropriations. Anticipated capital costs are equipment for the Public Works, Fire Dept, Activity Center and Art Center; technology upgrades in the council chambers and a number of improvements at the Arts Center rooftop HVAC, theater painting, new curtain system in Jaycee Studio, lighting improvements and ADA door handles and locks. Staff was instructed to keep capital items at a minimum as funding restrictions continue to present challenges in budgeting. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets. Debt service appropriations in 2017 decreased 28.33% as a result of bond calls in 2016. Total appropriations for 2017 are $8,438,431 which includes pay-as-you-go tax increment obligations. The 2017 expenditures represent 26.94% of total expenditures and include debt paid within the Enterprise Funds. Another 2.47% of appropriations are for depreciation of property and equipment. The six largest programs of the City in 2017 account for 92% of the appropriations budget and are as follows: Debt Service 7.8 million Public Safety 6.3 million Utilities (water, sewer, storm sewer, refuse) 6.0 million General Government 2.8 million Public Works 2.9 million Recreation 2.6 million 35 CITY OF HOPKINS 36 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2014201520162017 SOURCEACTUALACTUALACTUALBUDGET Current Revenues PROPERTY TAX$10,779,711$11,167,907$11,609,767$13,509,118 TAX INCREMENT2,697,0062,920,6812,957,3072,567,000 SPECIAL ASSESSMENTS1,329,776828,529829,065973,952 LICENSE, PERMITS & FINES801,760722,558728,667722,825 INTERGOVERNMENTAL REVENUE1,316,7091,432,3431,384,4031,215,023 CHARGES FOR CURRENT SERVICES1,484,3701,530,1601,552,1811,511,567 INTEREST ON INVESTMENTS142,886197,346162,46592,060 UTILITY SERVICE CHARGES5,089,5515,254,1105,076,5716,746,309 FRANCHISE FEES561,893566,756573,495553,000 OTHER REVENUES252,253764,4311,233,860499,269 TOTAL CURRENT REVENUES$24,455,915$25,384,821$26,107,781$28,390,123 18,735,0002,984,885 12,310,000 - Other Financing Sources TOTAL REVENUES$27,440,800$44,119,821$38,417,781$28,390,123 Add: Inter-Fund Transfers1,022,875875,0382,691,3411,668,293 TOTAL REVENUES$28,463,675$44,994,859$41,109,122$30,058,416 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECTIVE ADOPTED 2014201520162017 OBJECTIVEACTUALACTUALACTUALBUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS$10,658,678$11,115,039$11,373,161$12,131,210 MATERIALS, SUPPLIES AND SERVICES6,699,2616,892,9308,248,4027,767,165 CAPITAL OUTLAY2,386120,254596,793456,400 DEPRECIATION720,554779,685775,000775,000 DEBT REPAYMENT4,496,87313,851,16111,773,9168,438,431 TOTAL$22,577,752$32,759,069$32,767,272$29,568,206 Other Financing Uses9,278,3087,646,62710,527,9861,749,143 TOTAL EXPENDITURES$31,856,060$40,405,696$43,295,258$31,317,349 37 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2007 thru 2010 reflects overall increased market value of property in Hopkins from redevelopment. During the years 2011-2013 the housing market saw significant declines across the country and Hopkins was no exception. To the right depicts tax capacity value over the last ten years. Despite market conditions Hopkins continued to have growth due to commercial development that was already in place when the market turned. One significant development added over $40 million to the tax base, several smaller projects were completed in 2015-2016 also adding to the tax base. In 2016-17 a luxury apartment complex is being build which will add $63 million in value. Hopkins residential housing values have been increasing over the last several years as the housing market has rebounded resulting in quick sales for sellers who are getting competitive prices for their homes. One goal of the city council is to preserve the current housing stock and promote housing growth. As mentioned above housing values have increased this past year which has added to the tax capacity. One factor impacting the tax capacity is the Market Value Homestead Credit which removes a portion of homeowner’s values from the tax rolls. This credit is reduced as the value of a home increases until it is phased out entirely at about a home value of $400,000. Other property classes primarily commercial have increased slightly which has mitigated the overall decrease in market values . 38 CITY OF HOPKINS Changes in property values The chart at the left shows the percentage of homeowners that saw value changes in their property. About 37% saw decreases in their property values, however, a much greater percentage 62.8% had between .1% - to over 20% increases in values, an excellent sign that some home values are once again on the increase. The City’s levy is allocated against the tax base along with the levies for the school district, county and miscellaneous government entities. An average home in Hopkins in 2016 is valued at $223,000. Total taxes of $3,250 on an average home in Hopkins helps pay for all levels of governmental services. The chart to the right shows the components of City of Hopkins taxes by taxing district. City Property Tax Levy CITY Shown to the left is the annual cost of taxes on a home valued at $225,000 both on a constant basis and with the change in value over the years. The increase in 2011 is primarily due to the change in the fiscal disparities program as Hopkins became a net contributor following several years as a net recipient. The fiscal disparities program shares commercial growth across the Minneapolis/St. Paul metropolitan area with cities having little or no growth getting more from the pool than cities that have had commercial growth. Due to Hopkins’ $40 million commercial development project and being one of the few cities with any significant commercial activity we became a net contributor to the program. This shifted a portion of our tax base into the pool resulting in higher taxes for Hopkins residents. Taxes for 2013 and 2014 had small increases and 2015 saw the implementation of the Financial Management Plan (FMP) which provided new debt levies for the Pavilion and Art Center as we work to get these funds into a more stable financial position. The 2017 FMP provides for an increase in the Art Center levy and additional debt levies for the 2016 bond issues. This residential property owner in Hopkins will experience a $93 increase in City property taxes in 2017. The total City taxes on a median valued home would be $1,298 in 2017 as compared to $1,206 in 2016. 39 CITY OF HOPKINS Shown below is a summary of annual costs an average homeowner would expect to pay living in Hopkins. Water and sewer rates were increased for 2017 as the City implemented a tiered water rate structure in for 2017. Refuse rates are analyzed each year and if necessary are only increased every couple of years. There was no increase in refuse or recycling rates for 2017. The storm sewer rate is not expected to increase in the near future. Hopkins utility rates continue to rank in the lower tier of the Minneapolis/St. Paul metropolitan area despite the rate increases. 2017 Annual Property Tax Cost (average home) Annual Service Cost Council$8.02 City of Hopkins Average Annual Service Costs Administrative Services$60.92 on an Average Home. Finance$25.91 20172016 Legal$2.42 City Property Taxes$1,298.00$1,206.00 Unallocated $8.20 Water - Consumption Municipal Building$33.55 7,500 gallons a month Community Services$62.70 $252.24 $2.44/$2.81/$3.23 Tiered Rates $196.20 $2.18/1,000 gallons Police$445.00 Fire$97.36 Sewer - Consumption Public Works$251.23 7,500 gallons a month $522.90 $5.81/ 1,000 gallons Recreation$25.14 $387.00 $4.30/ 1,000 gallons Activity Center$32.07 Refuse Collection$262.20$250.20 Planning and Community Development$17.76 Pavilion$0.00 Storm Sewer$60.00$60.00 Arts Center$24.19 Franchise Fees$52.80$52.80 Debt$203.52 Total$2,448.14$2,152.20 Annual Cost for City Services$1,298.00 City Levy – By Purpose 20172016 General Fund$10,281,666$9,676,4516.25%increase Debt$2,103,366$1,907,87810.25%increase PERA$0$35,500100.00%decrease Pavilion$0$65,000100.00%decrease Arts Center$250,000$140,00078.57%increase Capital$310,000$125,000148.00%increase Total Levy$12,945,032$11,949,8298.33%increase In 2017 the City continued its property tax levy for the purpose of funding the debt for the construction of the new fire station, replacing the public works storage facility and remodeling the police station. In 2016 levy limits were once again eliminated and remain off for 2017. City tax capacity rates of 63.078% result in payments of $1,298 annually or approximately $108 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 40 CITY OF HOPKINS Net annual property tax costs for program budgets Streets & Park Maintenance Debt Police Protection $251.23 $203.52 $445.00 Fire ProtectionAssessing, Inspections & Council & Administration $97.36City Clerk $105.47 $62.60 Recreation Building Maintenance Planning & Zoning $57.21 $33.55 $17.76 Arts Center $24.19 The City’s overall net levy increase is 8.33%. The general fund levy increased in 2016 by 5.87% or $569,715. The debt levy was increased due to a street improvement levy and for park and parking lot improvements. The debt levy increase was 10.25% or $195,488. The capital levy was increased to $310,000 to provide for needed capital improvements. A levy for the Pavilion was eliminated for 2017 and Arts Center levy increased to $250,000. These levies were implemented to provide operational funds for these two facilities that were not cash flowing. The total levy increase for 2017 is $995,203. Despite the significant increase the tax rate only increased by 0.148%. This is due to new tax base that was added in 2016 from the development projects that were completed. Fire Chief Dale Specken and Mayor Molly Cummings receive a Fire Prevention Safety Grant in recognition of the City’s commitment to protecting our community. 41 CITY OF HOPKINS PRINCIPAL TAXPAYERS Shown to the left are the Percentage main taxpayers in the City of Taxof Total Tax Hopkins and their percentage TaxpayerType of BusinessCapacityCapacity of total tax capacity. The largest taxpayer comprises 8.06% of total tax capacity Colfin Midwest NNN Inv LLCReal Estate$1,754,1208.06% and the next largest taxpayer Super ValuGrocery Warehouses976,6904.49% comprises 4.49%. The city Hines Reit Mpls Ind, LLCManagement Services891,4304.09% has a diverse and stable tax Greenfield ApartmentsApartments403,3501.85% base, which provides the city Ramsgate ApartmentsApartments265,6251.12% with assurance that tax Southwest Real Estate, Inc.Apartments247,3561.22% revenues will remain stable Duke Realty LTD PartnershipOffice/Warehouses243,9901.14% against the loss of a The Luther Co LTD PartnershipCar Dealership210,2500.97% significant taxpayer. Westside Property OwnersApartments199,2500.92% Ugorets 8098 LLCIndustrial173,4300.90% City's Total Tax Capacity$21,775,310 PRINCIPAL EMPLOYERS Percentage of Total TaxpayerType of BusinessEmployeesEmployment Colfin Midwest NNN INV LLCFood, agricultural, financial and industri4,00026.274% ISD 270 HopkinsSchool1,0414.644% SuperValuGrocery distributor7076.838% ThermotechPlastic mold manufacturer4002.627% US Post OfficePost Office3142.063% Oak Ridge Country ClubCounty/Golf Club1851.215% Augustana Chapel View Care CenterHealth Care Services1851.215% US BankFinancial Institution1851.215% City of HopkinsMunicipal Government1440.946% Walser Chrysler Dodge Jeep RamAutomotive Dealership1000.657% Major employers in Hopkins include Cargill an international producer and marketer of food, agricultural, financial and industrial products, followed by ISD 270 Hopkins and Super Valu, a grocery distribution warehouse facility. While these three organizations employ almost 38 of the workforce in Hopkins the City has a diverse group of employers who have had a long-term presence in the City. Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. 42 CITY OF HOPKINS Estimated YE 2016 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Major Funds General Fund$5,983,875$12,835,312$12,835,312$5,983,8750.00%$0 Economic 4,340,850381,200210,4474,511,6033.93%170,753 Development Special Revenue Fund Art Center(977,200)935,7341,234,505(1,275,971)-30.57%(298,771)Capital projects are scheduled for 2017. The Financial Managementy Plan provides for the elimination of the negative fund balance over a 10-year period. Permanent 442,4007,751,9027,809,802384,500-13.09%(57,900)Street reconstruction Improvement projects for 2017 are Revolving Fundscheduled. Bonds will be sold to finance this project. Housing Improv 1,062,800407,750324,3661,146,1847.85%83,384Debt service revenues Refunding Bonds of from taxes are greater 2009B Debt than expected. Funds Service Fundwill be used to call the bonds in 2018. Water Enterprise 56,5002,209,4051,890,915374,990563.70%318,490A new tiered water rate Fund *structure along with increased sewer rates was implemented and will improve the financial Sewer Enterprise 94,6902,932,5042,670,897356,297276.28%261,607 stability of the Water and Fund * Sewer Funds Storm Sewer 1,134,500810,200497,0491,447,65127.60%313,151Bonds will be sold in Enterprise Fund *2017 for the planned infastructure projects. The general fund added approximately $70,000 to its fund balance in 2016. This was accomplished by all departments managing their budgets conservatively, reducing or eliminating expenses when appropriate and eliminating non-essential capital items. In addition, the recovering economy brought in inspection permit fees and charges that exceeded the budget and added to the fund balance. The 2017 budget was adopted with 3% wage increase including the addition of two full-time police officers and one full-time streets employee and a continuation of conservative budgeting. This is done to keep the levy increase at a minimum recognizing that the economic challenges faced by our taxpayers continue. The general fund is on target with its fund balance goal of 42% of prior year’s expenditures and is at 47% of expenditures. This has been accomplished by the reductions identified above and all department managers being particularly conscious of their budgets. Staff continues to work to address how to manage the financial position so that we maintain our fund balance goal. This may involve new or revised revenue options, expenditure adjustments or a combination of all these options. The Economic Development Fund’s 2016 tax revenue collections were over budget as excess tax increment revenues were received. These are revenues over and above what is required in the tax increment plans and therefore are reported in the Economic Development fund to be used for future development. The Economic Development fund provides the funding to assist in development efforts in 43 CITY OF HOPKINS Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is a development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The 2017 budget will add about $170,000 to fund balance as a continued effort to provide funding for future development incentives. The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid-1990’s. The Art Center has long-term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives supporting transfers from the Communication fund. In 2016 staffing was restructured to minimize expenses and is continually evaluated to ensure budget goals are met while meeting the needs of the users. The Arts Center has been evaluating past programming and is looking at trying new performance and artist options that will appeal to a wide audience. The Art Center funding issues were addressed in the Financial Management Plan that was adopted for 2014 and calls for an annual levy starting in 2015 to eliminate the negative fund balance. It is anticipated that the negative fund balance will be eliminated in 10 to 11 years. The Permanent Improvement Revolving Fund will decrease its fund balance in 2017 as bond funds from 2016 are used to complete the 2016 street improvement projects. It is anticipated that we will again be selling bonds in 2017 for the 2017 street improvement project. The Housing Improvement Refunding Bonds of 2009B meets its fund balance requirements as set forth in the debt covenant. The Water Enterprise Fund’s working capital remains positive due to the sale of bonds for the water portion of the street improvement project in 2016. With the completion of a rate study tiered water rates were implemented in 2017 to encourage water conservation and to provide for operations and infrastructure improvements. We continue to see increases in water consumption due to the development of multi-family housing. A luxury apartment complex of 263 units with a completion date of mid to late 2017 is expected to add to the demand for water. The Sewer Enterprise Fund’s working capital is expected to grow in 2017 as a result of a significant rate increase. With the completion of a rate study in 2016 annual rate increases are expected each of the next five years to adequately provide for operations, and capital projects, however fees paid to the Metropolitan Council for wastewater treatment costs have risen faster than projected and represent 52% of the sewer budget. The Storm Sewer Enterprise Fund’s working capital will increase in 2017 as scheduled projects are less than in past years. The Storm Sewer Fund is adequately funded for projected operations and infrastructure improvements and no rate increased are planned for the near future. Downtown Hopkins at night 44 CITY OF HOPKINS Non-Major Funds Estimated YE 2016 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Non-Major Funds Special Revenue Funds Chemical (8,400)60,00060,000(8,400)0.00%0 Assessment Parking106,600144,500110,928140,17231.49%33,572Increased rental revenue for permited parking spaces will provided needed funding for operations and future iimprovements. Communications527,400269,200289,747506,853-3.90%(20,547) Depot Coffee (4,320)348,000343,036644-114.91%4,964Coffee shop operations Housewere evaluated and changes made so that this fund can build fund equity for future projects. Tax Increment 4,980,3002,604,1491,933,8335,650,61613.46%670,316Funds collected are Funds replenishing negative fund (aggregate)balance as the districts tax collections increase Debt Service 8,529,4004,708,9627,506,8215,731,541-32.80%(2,797,859)Bonds were sold in 2016 Funds (aggregate)for a bond call in 2017 Enterprise Refuse *956,1001,007,400948,8761,014,6246.12%58,524 Pavilion *32,500404,100460,817(24,217)174.51%(56,717)Bonds will be sold to cover capital expenditures for this facility. The Chemical Assessment fund is part of the State Chemical Assessment Team program where seven teams are placed around the state to respond to hazardous waste calls. Hopkins has one of the teams that is supported by the Fire Department and fully funded by the state. The expenditures are reimbursed in full by the state, however some costs remain unreimbursed. In 2016 a portion of those unreimbursed costs were absorbed by the General Fund Fire Department budget The Parking fund, fund balance will increase in 2017 as the parking permit fees were increased to ensure revenues were adequate for the operation of the parking ramp and the various city lots. The city will need to increase parking fees by approximately 10% every other year to provide adequate funds to maintain the parking lots and cover operations. The Communication fund continues to support the advertising and promotion of the Art Center by transferring $86,920 annually to the Arts Center. New for 2017 is a full-time web and newsletter editor position which is funded with cable TV franchise fees. The council and staff continue to work at relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals. 45 CITY OF HOPKINS The Depot Coffee House is a chemical free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project is being supported by the General Fund with a $15,000 transfer as well as the Hopkins-Minnetonka Joint Recreation program ($15,000) and Three Rivers Park District ($15,000). The coffee shop portion of the Youth Center is a successful venture of the Depot and provides funding for the Youth Project. This funding has helped replaced grant funding that has dried up. The teens are excited to be involved in all aspects of the coffee business while learning vital business skills. In conjunction with the coffee business we offer rental of the facility when not used by the youth and we anticipate increased revenues from that source that will supplement the budget. Higher than expected revenues along with staffing changes in 2017 are expected to elimination the deficit from 2016. With the changes made we expect that the coffee shop will continue to provide support for the youth programming and provide adequate funds for cash flow. Tax Increment fund balance may be used to retire tax increment debt early. Currently most tax increment funds meet their combined fund balance goals. Debt Service fund balance may be used to retire general obligation debt. All debt service funds meet their debt service needs. The reduction of fund balance in 2017 is a result of a bond call in February. The Refuse Enterprise Fund has several programs that are subsidized by the refuse rates. The City has explored charging separate fees for these services but has met with resistance from the public. Staff continues to explore options for having these programs generate at least some revenue. Refuse rates were not increased for 2017. Working capital continues to be adequate for this operation. The Pavilion Ice Arena will show a net loss in 2016 due to needed building projects; staff continues to actively marketing the facility to various groups to increase off season rental income and eliminate the negative cash position. These efforts are paying off as rental bookings are again up for 2017 and the facility is seeing repeat bookings. The facility has debt from equipment certificates sold in 2012 that was used to purchase a new ice machine in 2013. With the facility aging the City looked at long-term capital needs and has started to plan for their financing. The Pavilion is also part of the overall long-range Financial Management Plan that was completed for 2014. Debt Overview The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor’s’ AA+ debt ratings. In January 2014 the city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA to AA+. This rating was upheld for each of the four bonds issued in 2016. Standard and Poor’s stated that this is based on the city’s maintenance of very strong reserves and “good” Financial Management Assessment. The City’s total outstanding debt on December 31, 2016, was $52,865,000. After reducing the outstanding debt by the amount supported by utilities and special fee the per capita debt at December 31, 2016 is $1,520. The total debt principal and interest due in 2017 is $4,622,609, of which $2,103,366 is raised through direct tax levy. The remaining principal and interest is paid with refunding bonds, direct fees, utility fees, tax increments, and special assessments. As depicted in the graph on the following page debt service requirements continue to decline steadily throughout the remaining terms of the bonds. The requirements drop to $1,767,258 in 2030 and to $660,813 in 2032 before the final issue matures in 2036. The ability to retire 77% of the City’s debt in the next ten years is a major strength. The City is planning on issuing GO Improvement Bonds for the 2017 street improvements and for Burns Park improvements in 2017. The actual amount to be bonded is estimated at $12,000,000 and will include as revenue sources a tax levy, utility revenues, and special assessments. Budget impact of the new debt has been factored into the utility funds budgets and the tax levy portion has been factored into the long-range Financial Management Plan. Part of the Financial Management Plan is to minimize tax increases to the taxpayers. Debt that is needed for future projects is part of that plan. 46 CITY OF HOPKINS The graph below illustrates the retirement of debt (principal and interest) in years 2017 through 2036. Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $1,721,105,311 in 2016. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $51,633,159; projected debt subject to the legal limit for Hopkins is $29,230,000 or 57% of total debt limit allowed. OUTSTANDING DEBT AND PURPOSE 2016AGO Improvement BondsStreet Improvements$ 4,335,000 2016BGO Tax AbatementParks and Municipal Parking Ramp1,630,000$ 2016CGO BondsEquipment Certificates & Water Revenue Bonds$ 2,805,000 2016DGO Tax Increment Revenue Refunding Refunding of 2009 HRA Tax Increment BondsRevenue Bonds$ 3,540,000 2015AGO Street Reconstruction BondsStreet Improvements$ 4,100,000 2015BGO Tax AbatementCottageville Park and Parking Lot Improvements$ 2,940,000 2015CGO Tax Increment Revenue Refunding Refunding of 2008 HRA Tax Increment BondsRevenue Bonds$ 4,175,000 2015DGO Tax Increment Revenue Refunding Refunding of 2007 HRA Tax Increment BondsRevenue Bonds$ 7,085,000 2014AGO Improvement BondsStreet Improvements$ 1,785,000 2014BGO Refunding Bonds Refund the 2007A and 2007B Bonds5,490,000$ 2013AGO Improvement BondsStreet Improvements$ 3,225,000 2012AGO Capital Improvement Plan BondsPolice Station Expansion and Remodeling $ 1,255,000 2012BGO BondsStreet Improvements$ 3,665,000 2012BGO BondsEquipment Purchases$ 625,000 2010AGO Improvement BondsStreet Improvements$ 1,895,000 2010BGO Refunding BondsCounty Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A)$ 1,690,000 2009AGO Revenue BondsWater & Sewer Improvements and Refunding of 2000 Water and 1999C Storm Sewer Bonds$ 1,200,000 2009BGO Taxable Housing Improvement Refunding 1999A & 1999B Housing RefundingImprovement Bonds$ 1,425,000 Total Outstanding Debt December 31, 2016$52,865,000 47 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS TotalTax Increment BondsSpecial Assmnt BondsRevenue Bonds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20173,465,000 1,157,609 715,000 348,999 600,000 183,409 385,000 108,969 20184,340,000 1,110,734 940,000 356,978 620,000 171,428 395,000 99,494 20194,285,000 1,015,108 1,015,000 335,053 635,000 158,646 405,000 89,563 20204,390,000 916,371 1,060,000 311,318 645,000 145,188 410,000 78,951 20214,520,000 812,041 1,115,000 286,105 660,000 130,460 425,000 67,561 20224,300,000 710,542 1,165,000 259,378 645,000 114,840 425,000 55,781 20234,335,000 612,929 1,230,000 229,933 665,000 98,965 430,000 43,729 20243,195,000 525,781 1,090,000 201,013 680,000 82,485 345,000 32,696 20253,450,000 447,487 1,295,000 171,644 700,000 65,360 355,000 22,696 20263,400,000 367,902 1,350,000 139,844 720,000 47,505 205,000 15,546 20273,070,000 294,157 1,410,000 107,450 520,000 32,284 225,000 11,106 20283,165,000 221,124 1,470,000 72,744 535,000 19,506 225,000 6,045 20292,920,000 146,481 1,540,000 35,031 290,000 8,766 135,000 1,688 20301,680,000 87,640 555,000 7,631 150,000 2,344 - - 20311,000,000 52,258 - - - - - - 2032630,000 30,813 - - - - - - 2033170,000 20,150 - - - - - - 2034180,000 14,720 - - - - - - 2035180,000 8,960 - - - - - - 2036190,000 3,040 $ 8,555,84652,865,000$ $ 2,863,11815,950,000$ 8,065,000$ 1,261,185$ 4,365,000$ 633,825$ Housing Fee BondsG.O Bonds PrincipalInterestPrincipalInterest 2017265,000 57,566 1,500,000 458,666 2018270,000 46,728 2,115,000 436,108 2019285,000 34,720 1,945,000 397,126 2020295,000 21,665 1,980,000 359,250 2021310,000 7,440 2,010,000 320,475 2022- - 2,065,000 280,544 2023- - 2,010,000 240,303 2024- - 1,080,000 209,588 2025- - 1,100,000 187,788 2026- - 1,125,000 165,008 2027- - 915,000 143,316 2028- - 935,000 122,829 Certificate from our last bond rating 2029- - 955,000 100,996 upgrade in 2014 which was to AA+. 2030- - 975,000 77,665 2031- - 1,000,000 52,258 2032- - 630,000 30,813 2033- - 170,000 20,150 2034- - 180,000 14,720 2035- - 180,000 8,960 2036- - 190,000 3,040 $ 1,425,000$168,119$ 3,629,60023,060,000$ 48 CITY OF HOPKINS The following is a schedule of the City’s debt by major and non-major funds. Enterprise Fund debt consists of water, sewer, storm sewer debt and Pavilion. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. Water, sewer, storm sewer enterprise fund debt are major funds, the Pavilion is a non-major fund. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Major Enterprise Fund Bonds Water Fund BondsStorm Sewer BondsNonmajor Enterprise Total - All FundsSewer Fund BondsTotal Enterprise Funds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20173,465,000 1,157,609 145,000 46,785 105,000 35,730 115,000 24,254 20,000 2,200 108,969 385,000 20184,340,000 1,110,734 155,000 42,997 105,000 32,656 115,000 20,00022,041 395,0001,800 99,494 20194,285,000 1,015,108 155,000 38,073 110,000 29,493 120,000 20,00020,597 405,0001,400 89,563 20204,390,000 916,371 155,000 35,010 110,000 26,068 125,000 20,00016,873 410,0001,000 78,951 20214,520,000 812,041 165,000 30,710 115,000 22,368 125,000 20,00013,883 425,000600 67,561 20224,300,000 710,542 165,000 26,160 115,000 18,568 125,000 20,00010,853 425,000200 55,781 20234,335,000 612,929 175,000 21,510 125,000 14,618 130,000 7,601 43,729 - -430,000 20243,195,000 525,781 175,000 16,710 125,000 10,518 45,000 32,696 5,468 - -345,000 20253,450,000 447,487 180,000 11,810 130,000 15,318 45,000 (4,432) 22,696 - -355,000 20263,400,000 367,902 115,000 8,160 45,000 45,000 15,546 3,718 3,668 - -205,000 20273,070,000 294,157 120,000 5,735 50,000 55,000 11,106 2,736 2,635 - -225,000 20283,165,000 221,124 120,000 3,043 50,000 55,000 6,045 1,603 1,400 - -225,000 20292,920,000 146,481 65,000813 30,000500 1,688 40,000 376 - -135,000 20301,680,000 87,640 - - - - - - - - - - 20311,000,000 52,258 - - - - - - - - - - 2032630,000 30,813 - - - - - - - - - - 2033170,000 20,150 - - - - - - - - - - 2034180,000 14,720 - - - - - - - - - - 2035180,000 8,960 - - - - - - - - - - 2036190,000 3,040 - - - - - - - - - - 52,865,000$ 287,515$ 1,225,000$ 213,889$ 1,130,000$ 125,221$ 120,000$ 7,200$ 4,365,000$ 633,825$ $ $ 8,555,8461,890,000 Major FundNon-Major Funds - Aggregate Hsg Imprv Rfdg Bds of 2009BDebt Service Fund BondsTotal Debt Service Fund PrincipalInterestPrincipalInterestPrincipalInterest 2017265,000 57,566 2,815,000 991,074 3,080,000 1,048,640 2018270,000 46,728 3,675,000 964,513 3,945,000 1,011,240 2019285,000 34,720 3,595,000 890,825 3,880,000 925,545 2020295,000 21,665 3,685,000 815,755 3,980,000 837,420 2021310,000 3,785,0007,440 737,040 4,095,000 744,480 2022 - 3,875,000- 654,761 3,875,000 654,761 2023 - 3,905,000- 569,200 3,905,000 569,200 2024 - 2,850,000- 493,085 2,850,000 493,085 2025 - 3,095,000- 424,791 3,095,000 424,791 2026 - 3,195,000- 352,356 3,195,000 352,356 2027 - 2,845,000- 283,051 2,845,000 283,051 2028 - 2,940,000- 215,079 2,940,000 215,079 2029 - 2,785,000- 144,793 2,785,000 144,793 2030 - 1,680,000- 1,680,00087,640 87,640 2031 - 1,000,000- 52,258 1,000,000 52,258 2032 - 630,000- 30,813 630,000 30,813 2033 - 170,000- 20,150 170,000 20,150 2034 - 180,000- 14,720 180,000 14,720 2035 - 180,000- 8,960 180,000 8,960 2036 - 190,000- 3,040 190,000 3,040 $ 1,425,000$ 168,119$ 47,075,000$ 7,753,903$ 7,922,02148,500,000$ 49 CITY OF HOPKINS Through the visioning process the City has discovered that there are many community needs that the City of Hopkins must meet. The future debt capacity will allow the City to issue debt to provide for our community’s needs and desires while keeping property taxes reasonable. Principal and interest payments for the City are projected to stay fairly level over the next several years before dropping in 2024 and again in 2031. CAPITAL EXPENDITURES Capital Improvement Plan The Capital Improvement Plan (CIP) is a five-year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. The complete CIP is posted on the city’s website and includes details of each project, the funding sources and a city map showing the street projects for the next five years color coded by project year. 50 CITY OF HOPKINS 2017 Capital Improvement Projects Building Improvements – The city hall lobby is scheduled for a design upgrade and in the 2017 plan is an engineering study to begin the design work for the improvements that are planned for 2018. The Hopkins Center for the Arts built in 1997 has been upgrading and enhancing the facility that is approaching 20 years old. In 2017 we will be replacing the rooftop HVAC units, replacing the sound curtain in the Jaycee studio, making improvements to the theater, along with various other minor building projects. Replacement of the HVAC units with energy efficient models is expected to result in energy savings of approximately $2,000 a year. There are no budgetary savings that result from the interior projects, however by enhancing the facility the goal is to increase rentals and gallery showings. The Activity Center, a facility for senior programming will continue the refurbishing of the multipurpose gymnasium that began in 2016, the gym is used for many programming activities and is rented to outside organizations for their functions. There are also improvements to the kitchen planned. While there are no substantial operational savings that result from these projects, we expect to see rental income increase as the gymnasium becomes more attractive to outside organizations looking for functional rental space. The Council Chambers continues with its technology improvements in 2017 to projection system which is over 10 years old and low resolution. There are no operational savings to this project; however it will allow for clearer recording and transmission of council meetings. The Pavilion Ice Arena built in 1990 is scheduled to replace the ballast and membrane for the north and south roof sections due to leaks in the current roof. In 2018 the R22 direct ice refrigeration system needs to be replaced due to regulations requiring ozone-friendly refrigerant. In 2017 an engineering study will be prepared for the design, planning and specification document needed for the bidding process. The roof replacement will result in approximately 5% in maintenance costs. We do not yet have an estimated savings for the refrigerant replacement project. The Public Works building will have the employee break/lunchroom upgraded as the final portion of the overall building remodeling/enhancements. The lunchroom upgrades will help with employee moral providing a pleasant environment for their breaks. There are no operational savings to this improvement but may provide indirect benefits in employee productivity. Parks – Several parks will see needed improvements in 2017. Hilltop Park will get new play equipment, Burnes Park will get new play equipment for ages 2-5, Maetzold Field will get new play equipment, Interlachen Park will have portable hockey boards installed and Burnes Park will have the warming house and picnic shelter replaced and a splash pad will be constructed. The park projects are needed to protect the City’s investment, prolong the life of park and improve play conditions. As a result of replacing aging structures we expect to see maintenance costs reduced about 7-8%. Shady Oak Beach, a facility shared with the City of Minnetonka will get improvements with the construction of a monument sign to more clearly identify the beach. The City of Hopkin’s share of project cost is 33%. Pedestrian and Bike Trail Improvements – The City recently adopted a plan to increase pedestrian and bicycle access and safety. As part of that plan a number of bike lanes will be painted along with constructing trails and sidewalks. There are no operational or budgetary savings from this project but is done as the City’s commitment to healthy living for Hopkins area residents. Street & Pavement Management – A funding and implementation plan for repair and maintenance of Hopkins roadways exists. Needs are identified and funded through State Aids, special assessments, utilities, tax increments and annual levies. This program identifies the most opportune time to repair streets. In 2017 the City anticipates spending approximately $15,016,000 on street improvements that 51 CITY OF HOPKINS also include water, sewer and storm sewer infrastructure improvements. The largest projects are the 2017 street reconstruction project at $6.6 million, and Blake Road corridor improvements at $2.6 million. Also scheduled are street sign replacements of aged regulatory and warning signs. A proactive pavement management and infrastructure improvement program aids in keeping public works maintenance costs to a reasonable level and as a result of the city’s program, maintenance costs have remained relatively stable over the last five years. Planned street reconstruction costs will annually save the city an estimated $25,000 in sealcoating and crack seal expenses. Utilities – Included in the CIP for 2017 is annual storm drainage maintenance in the form of concrete alley repairs, along with upgrade of water, sewer and storm sewer lines done in conjunction with residential street improvements. Operational impacts are reduced maintenance costs within the utility funds estimated at $5-10,000 annually. The City will reconstruct lift station number seven to accommodate three submersible pumps. The existing building would remain to house the controls and electrical equipment including the existing backup generator. The existing lift station is over 40 years old and pumps an average of .5 million gallons a day. The current structure is difficult to maintain or repair and remover the existing pumps. Operational savings of this project is estimated at $10,000 per year. Hilltop Park will be getting new pay equipment and Burns Park will have the City hall lobby scheduled for a warming house and picnic shelter replaced design upgrade along with the construction of a splash pad. 52 CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2017 Project Title InvestmentProject Description City Hall Lobby Upgrade$15,000Engineering study for lobby upgrades Hopkins Activity Center$25,000Multipurpose gym improvements Hopkins Activity Center$15,000Kitchen equipment Hopkins Art Center$320,000Rooftop HVAC units Hopkins Art Center$15,000Paint theater Hopkins Art Center$30,000Jaycee studio curtain system Hopkins Art Center$12,200Lighting improvements Hopkins Art Center$10,000ADA door handles and locks Communication Fund$23,000Council chambers technology improvements Pavilion Ice Arena$140,000Roof replacement Pavilion Ice Arena$200,000Engineering study for ice refrigeration replacement Public Works Building$25,000Public Works lunchroom enhancements Parks - Hilltop Park$120,000Play equipment Parks -Burnes Park$100,000Play equipment - ages 2-5 Parks -Maetzold Field$100,000Play equipment Parks - Burnes Park$1,200,000Warming house and splash pad Parks - Interlachen Park$50,000Portable hockey boards Recreation$50,000Shady Oak Beach improvements Residential Street Improvements$6,600,0002017 Street reconstruction project Citywide concrete alley's$80,000Throughout the city - concrete alley repairs and storm drainage improvements Pedestrian & Bike Improvements$25,000Painting bike lanes, constructing trails and sidewalks Blake Road Corridor Improvements$2,648,800Pedestrian improvements to Blake Road Street Overlay Improvements$275,000Street overlay improvements to various streets as identified in pavement management plan. Street Sign Management$20,000Replacement of aged regulatory and warning signs Transportation$5,313,0008th Avenue Artery project Transportation$100,000Westbrook Way/Smetana Rd drainage improvements Sewer$700,000Reconstruct Lift Station No. 7 Storm Drainage$21,000Alley repairs TOTAL$18,233,000 The projects described on the previous page are planned for 2017. The complete Capital Improvement Plan (CIP) is five years. Both of the CIP and Equipment Replacement Plan (ERP) described on the following page assist the City with budgeting. 53 CITY OF HOPKINS Equipment Replacement Plan 2017 Equipment Replacement In addition to the CIP, the City also completes an Equipment Replacement Plan (ERP). The ERP is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $1.2 million. Revenues for the ERP are derived from charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. The following items are in the 2017 ERP and have been approved for purchase in 2017. Project TitleProject Description Investment Technology Upgrades$140,000Replacement and/or upgrades of staff computers, printers and scanners, network and backup servers Fire - Aerial Truck$54,217Lease payment on portion of aerial truck financed in 2008 Fire - Telesquirt$900,000Replacement of Engine 2 - Telesquirt Fire - Thermal Imagine Camera$12,900Replacement of thermal imaging camera (1) Police Patrol Vehicles $98,000Marked patrol cars used by patrol officers to respond to calls, enforce traffic laws and perform general patrol duties Police - Wireless Solution$12,000Wireless solution for squad cars Public Works - Building & $10,000Truck Scan Kit for diagnostics Equipment Services Public Works - Parks/Forestry$34,200Trucksteer used by parks for ballfield maintenance Public Works - Parks/Forestry$45,000Stump cutter for use by forrestry dept Public Works - Parks/Forestry$32,000Skid loader used by both departments Public Works - Streets$225,000Tandem dump truck Public Works - Streets$45,900Roller used for asphalt repairs Public Works - Streets$11,200Line striper Public Works - Streets$118,000Asphalt paver Public Works - Streets$160,000Snow blower for snow removal in downtown area Public Works - Streets$15,000Asphalt hot mix heating box & trailer Public Works - Refuse$101,600Rear loading refuse truck Public Works - Sewer$425,000Jet Vactor used for cleaning sewer catch basins Public Works - Sewer$36,000Generator - portable Public Works - Sewer$160,000SCADA upgrade Public Works - Water$32,0003/4 ton truck used by water department Public Works - Water$100,000Water treatment plan equipment upgrades TOTAL $2,768,017 54 CITY OF HOPKINS 2017 Other Budgeted Capital Expenditures Along with the Capital Improvement and Equipment Replacement Plans the city has the following capital items budgeted in the operating budgets of the General and Special Revenue Funds. The first year an item is requested it must be funded within the department making the request. Once the item has been funded it will be placed in the ERP for future replacement. All construction related capital items are always placed in the CIP regardless of the funding source. Items with a value of $5,000 or greater are defined as capital expenditures within the General and Special Revenue Funds. Items with a value of $5,000 or more will be placed in the ERP for future replacement once funded by the department making the request. The exception is capital items in the Chemical Assessment Team Special Revenue Fund, which is fully funded by State of Minnesota HazMat grant dollars. The following capital items have been budgeted in the General and Special Revenue Funds for 2017. PROJECT TITLE General Fund Public Works$5,500Tire changer Public Works$5,000Floor scrubber Fire Department$10,800Fitness room equipment Activity Center$10,400Tables and chairs Special Revenue Funds Art Center$2,800Refrigerator for catering kitchen Art Center$6,000Pedestals for art gallery Art Center$2,200Standing work station TOTAL$42,700 Total budgeted capital items from all funding sources totals $21,043,717 for 2017. Items in the City’s Equipment Replacement Plan include a jet vactor used by the sewer department and a telesquirt fire truck. 55 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS ApprovedProjected 201620172018201920202021 ProjectedBudgetBudgetBudgetBudgetBudget urrent Revenues Property Tax9,544,396$ 10,366,866$ 10,709,384$ 10,986,387$ 11,238,115$ 11,487,867$ Intergovernmental Revenues1,061,205 1,028,426 900,000 950,000 950,000 1,000,000 License, Permits and Fines900,057 700,825 750,000 750,000 750,000 750,000 Charges for Current Services406,998 215,650 250,000 260,000 260,000 265,000 Other Revenue 76,276 233,545 150,000 100,000 100,000 100,000 Franchise Fee 306,335 290,000 300,000 310,000 325,000 325,000 12,835,31212,295,267 13,059,384 13,356,387 13,623,11513,927,867 Total Revenues rrent Expenses u Salaries and Employee Bene 9,738,1059,173,034 9,932,867 10,131,524 10,334,15510,540,838 f Materials, Supplies and Servi 3,050,5072,880,106 3,111,517 3,204,863 3,268,960 3,367,029 c Capital outlay 31,700- - - - - Transfer Out 140,000 15,000 15,000 20,000 20,000 20,000 12,835,31212,193,140 13,059,384 13,356,387 13,623,11513,927,867 Total Expenditures Change in Fund Balance102,127 - - - - - Fund Balance5,643,075$ 5,643,075$ $ 5,643,075$ 5,643,075$ 5,643,075$ 5,643,075 General Fund Property tax revenue is the amount needed to fill the gap between budgeted revenues and appropriations. The average increase in levy for the general fund for years 2017 through 2021 is projected to be 4-5% which the City Council feels is responsible given the current economic situation. This projection reflects an appropriation increase of 8.08% for 2017 and an average increase for years 2018-2021 of 1.6%. The actual amount for any particular year may be reduced through appropriation cuts or new revenue sources. The city’s reliance on support from the state has significantly decreased over the years as the state faced its budget challenges and reduced local support. At one time taxes were less than 70% of total revenues. They now comprise 82%. The city no longer relies on state support when budgeting due to its uncertainty. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. Due to recent economic development we expect the market value will start showing additional growth for tax year 2018. The city continues to work with developers on several redevelopment projects that will contribute to the increase in the tax base despite what current market trends indicate. Therefore Hopkins tax base will most likely see an overall increase in the next few years. Franchise fees – The City implemented an electric and gas utility franchise fee in 2004 to help offset the amount of tax levy needed to fund general operations. The franchise fee has an optional sunset clause after two years but has been renewed for two additional years in 2007, 2009, 2011 and for five years in 2013. The franchise fee is set to expire December 31, 2018 and staff most likely will recommend its renewal as this source of income has become an important component of the budget. While the franchise fee is reviewed annually the City Council along with staff continues to analyze its usefulness. 56 CITY OF HOPKINS Intergovernmental revenue received by the City include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. The City of Hopkins receives less than 9% of its budget from state grants and programs. The revenue we do receive is derived from fees on services to the public – police & fire aid is from fees on insurance policies purchased by individuals and companies, municipal state aid is derived from gas tax. Both these sources remain stable. The State of Minnesota also provides Hopkins with about $400,000 in Local Government Aid. This funding source previously received up until 2003 before it was eliminated was reinstated at a much lower level in 2014 and continues into 2017. Licenses, permits and fines include building permits are dependant on new construction and remodeling projects. Based on projected new construction projects, historical information and economic conditions revenues are expected to increase slightly for 2017 from the 2016 budget with revenues continuing to show small increases in the following years as. Fine revenue continues to be stable with slight increases due to implementation of license violation and administrative citations. The additional revenues received in 2016 were from commercial re-development projects. Unless a developer’s commercial project has funding it is the City’s practice to not budget for those amounts. Various programs throughout the City generate charges for services and a significant portion of this line item is plan review, housing inspection fees and vacant property registrations. Charges are usually increased by an inflationary rate but due to projected development and the resulting plan review fees we expect to see a slight increase for the 2017 budget. Future projections are to forecast an increase of 1% annually. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $12,835,312 and an appropriation budget of the same. The increase in appropriations over 2016 is $959,582 or 8.08%. The budget was prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2017, the budget was prepared with 3.0 new FTE staffing; two new police officers and a 1 full-time public works employee; a 3% wage increase for all employee groups, several small general fund capital items, and small inflationary increases in street maintenance expenses for road repairs and other general departmental expenses. The enhanced medical response program implemented in 2007 will continue into 2017 as the program has allowed for greater efficiencies in the police department and increased service to the public. Other budget considerations for 2017 are the cost of employee health insurance and state mandated increases in employee pension funds along with normal inflationary increases. The council attempts to balance maintaining the current level of services while meeting the increasing needs of the public. An emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff implemented a long-rage financial management plan for 2014 that provides funding for future needs. The plan includes staffing, operational and capital needs and sets forth funding mechanism to meet those expenditures. This plan played a key role in developing the 2017 budget for all city funds. Staff also continues to explore ways to contain costs and develop new revenue sources so that we can maintain the quality of life Hopkins residents have come to expect. 57 CITY OF HOPKINS The chart to the left shows 2016 actual expenditures along with the 2017 approved budget and projected budgets from 2018 through 2021. The general fund tax levy rises in proportion to general fund expenditures. Currently Hopkins relies on its property taxes as its major source of revenue. In fact property taxes account for 82% of General Fund revenues. 58 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department Budget 2015201620162017$ Amount ActualActualBudgetBudgetChange Change Council $ 82,266 $ 90,417 $ 79,708 $ 82,898 $ 3,190 4.00% Administrative Services 523,849 560,494 531,969 629,648 97,679 18.36% Finance 359,990 324,222 276,993 282,658 5,665 2.05% Legal 156,835 196,904 150,000 150,000 - 0.00% Municipal Building 319,352 367,667 333,611 346,732 13,121 3.93% Community Services 1,025,383 1,131,565 1,089,843 1,146,560 56,717 5.20% Police 4,515,389 4,739,512 4,737,734 5,095,102 357,368 7.54% Fire 1,038,292 1,174,801 1,105,110 1,176,532 71,422 6.46% Public Works 2,332,905 2,635,037 2,580,621 2,800,935 220,314 8.54% Recreation 604,955 569,136 632,894 667,778 34,884 5.51% Planning & Economic Dev. 134,289 161,331 153,872 246,877 93,005 60.44% Community Development 90,387 90,541 121,875 124,820 2,945 2.42% Unallocated 44,630 151,513 81,500 84,772 3,272 4.01% TOTAL $11,228,522 $12,193,140 $11,875,730 $12,835,312 $ 959,582 8.08% 2017 Mayor & Council Katy Campbell, Jason Gadd, Mayor Molly Cummings, Kristi Halverson, Aaron Kuznia 59 CITY OF HOPKINS Budget Projections – Other Major Funds The City also prepares budget projections for its budgeted major funds which include the following: Special Revenue Funds – Economic Development, Arts Center Debt Service Fund – Taxable Housing Bonds of 2009B Enterprise Funds – Water, Sewer, Storm Sewer Economic Development Fund ApprovedProjected 201620172018201920202021 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax481,725$ 310,900$ $ 317,118$ 323,460$ 329,930$ 336,528 Intergovernmental Revenues 50,000 - - - - - Other Revenue 141,729 70,300 15,500 15,500 15,500 15,500 673,454 381,200 332,618 338,960 345,430 352,028 Total Revenues Current Expenses Salaries and Employee Benefits189,956 168,876 173,098 177,425 181,861 186,408 Materials, Supplies and Services514,765 41,571 41,987 42,407 42,831 43,259 704,721 210,447 215,085 219,832 224,692 229,666 Total Expenditures Change in Fund Balance (31,267) 170,753 117,533 119,128 120,738 122,362 Fund Balance$ 4,385,982$ 4,556,735$ 4,674,268$ 4,793,397$ 4,914,135$ 5,036,496 The main source of revenue for the Economic Development Fund is a special development tax levy based on a percentage of the market value. As the market value fluctuates so does the amount of the levy. Funds are used for development efforts by the City and to provide assistance to developers. Intergovernmental revenues in the form of grants from the County or Metropolitan Council are applied for when there are specific needs by a developer for site remediation in order to make a project viable. In the past the City has been successful at obtaining these grants on behalf of developers which has assisted in a number of recent projects which in turn adds to the tax base. The Gallery Flats apartments are a recent development project that brought 163 luxury apartments to the housing market in 2014 and has added significant value to the tax base. Behind the Gallery Flats is The Moline, a 263 luxury apartment complex currently under construction and expected to add $63 million to the tax base. 60 CITY OF HOPKINS Arts Center ApprovedProjected 201620172018201920202021 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax$ 138,018$ 250,000$ 250,000$ 225,000$ 400,000$ 700,000 Intergovernmental Revenues 34,968 35,597 75,000 80,000 85,000 90,000 Charges for Current Services521,466 529,017 539,597 550,389 561,397 572,625 Other Revenue 348,207 34,200 24,000 25,000 26,000 27,000 Transfers In 86,920 86,920 86,920 86,920 86,920 86,920 Total Revenues 1,129,579 935,734 975,517 967,309 1,159,317 1,476,545 Current Expenses Salaries and Employee Benefits404,889 420,760 429,175 437,759 446,514 455,444 Materials, Supplies and Services388,871 415,545 419,700 423,897 428,136 432,418 Capital Outlay 130,166 398,200 119,100 80,000 36,500 20,225 Total Expenditures 923,926 1,234,505 967,976 941,656 911,150 908,087 Change in Fund Balance 205,653 (298,771) 7,542 25,653 248,167 568,458 Fund Balance$ (1,424,006)(1,125,235)$ (1,416,464)$ (1,390,811)$ (1,142,644)$ (574,186)$ The Hopkins Center for the Arts “Arts Center” was built in 1997 with funds from the City, the State of Minnesota as well as contributions from corporations, foundations, local civic organizations, businesses and individuals. The Arts Center is owned by the City of Hopkins and has a major tenant in Stages Theater Company (children’s theater) and Hopkins School District 270. While ticket sales and lease rent provide a significant income stream it has not always been sufficient to meet expenditures and as a result the fund has a large deficit. Over the last five years various changes in operations has resulted in some success at reducing the deficit, however it has not been sufficient to totally eliminate the negative position. As part of the City’s long-range financial management plan staff and council emphasized that the negative position must be eliminated. While not ruling out donations and naming rights to the theater, with the state of the economy we need to address the deficit now. As a result the City implemented a tax levy for 2015 that will eliminate the negative fund balance over the next ten years. In addition, Arts Center staff has been reorganized and additional efforts have been made to rent and lease the various available spaces to the extent possible. Arts staff has also been successful at obtaining grants for programming from the MN Arts Boards which help underwrite the cost of hiring performance artists. Expenditures are expected to increase 2-3% a year to keep up with inflation. In addition to operational expenditures the Arts Center due to its age has several capital needs over the next couple of years that add to its budget challenges. The Arts Center has a partner in their fund raising efforts through the Friends of the Hopkins Center for the Arts, a 501(c)3 nonprofit that raises funds to support arts programming at the Center, coordinates volunteer efforts and fosters public awareness of the Center. 61 CITY OF HOPKINS Taxable Housing Bonds of 2009B ApprovedProjected 201620172018201920202021 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Special Assessments398,680$ 399,256$ 399,256$ 399,256$ -$ -$ Other Revenue4,396 8,494 1,300 1,300 - - 407,750403,076 400,556 400,556 - - Total Revenues Current Expenses Materials, Supplies and Services1,592 1,800 1,800 1,800 - - Debt Service Payments327,784 322,566 1,186,232 - - - Transfer Out - - - 683,357 - - 329,375 324,366 1,188,032 685,157 - - Total Expenditures Change in Fund Balance 73,700 83,384 (787,476) (284,601) - - Fund Balance$ 988,693$ 1,072,077$ 284,601$ -$ -$ - Collections of special assessments for the Taxable Housing Bonds of 2009B are expected to exceed the debt service requirements of the bonds. Bonds for this project were originally sold in 1997 and were refunded in 2009 at a significant savings. Special assessments collected on two condominium projects pay for the debt service that funded private improvements on those properties. The special assessments cannot be prepaid so at the end of the debt service period any excess funds will be returned to the homeowners association for additional improvements to the property pursuant to the agreement. Due to the refunding in 2009 adequate revenues are available to call the bonds in 2018. The remaining special assessments collected will be reinvested in the housing project in 2019. Water Fund ApprovedProjected 201620172018201920202021 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges$ 1,265,795$ 2,047,405$2,129,301$ 2,214,473$ 2,303,052$ 2,395,174 Other Revenue 157,402 162,000 160,000 165,000 170,000 175,000 Total Revenues 1,423,197 2,209,405 2,289,301 2,379,473 2,473,052 2,570,174 Current Expenses Salaries and Employee Benefits437,019 352,800 363,384 374,286 385,514 397,080 Materials, Supplies and Services1,075,498 1,151,153 1,174,176 1,197,660 1,221,613 1,246,045 Depreciation 250,000 250,000 250,000 250,000 250,000 250,000 Debt Service Payments 50,860 47,335 50,500 46,800 43,000 40,000 Transfer Out 189,626 89,627 90,000 90,000 90,000 90,000 Total Expenditures 2,003,003 1,890,915 1,928,060 1,958,745 1,990,127 2,023,125 Net Income (579,806) 318,490 361,241 420,728 482,925 547,050 The water fund has several planned maintenance projects planned for 2017 that will draw on reserves. A tiered rate structure was implemented in 2017 with the goal of the new rate structure to encourage conservation due to increased water consumption caused by new multi-family development. Maintenance costs are projected to increase about 2% over the next 4 years. Budgeted transfers are for the water funds share of the public works facility debt as the water department headquarters are located in that facility. 62 CITY OF HOPKINS Sewer Fund ApprovedProjected 201620172018201920202021 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges2,045,107$ 2,932,504$ 3,079,129$ 3,233,086$ 3,394,740$ 3,564,477$ Other Revenue104,484 - 1,200 1,200 1,200 1,200 Total Revenues 2,932,5042,149,591 3,080,329 3,234,286 3,395,940 3,565,677 Current Expenses Salaries and Employee Benefits222,620 368,717 376,091 383,613 391,285 399,111 Materials, Supplies and Services1,748,962 2,014,453 2,034,598 2,054,944 2,075,493 2,096,248 Depreciation170,000 170,000 172,000 172,000 172,000 172,000 Debt Service Payments38,956 36,130 37,000 35,000 33,000 30,000 Transfer Out181,596 81,597 82,000 82,000 82,000 82,000 Total Expenditures 2,670,8972,362,134 2,701,689 2,727,557 2,753,778 2,779,359 Net Income(212,543) 261,607 378,640 506,729 642,162 786,318 Sewer treatment costs to the Metropolitan Council, a regional sewer treatment system are 55% of the expenditures of the sewer fund. The Met Council charges municipalities a percentage of their annual budget based on individual cities water flow. This charge can fluctuate based on water used in Hopkins versus the entire region although our percentage has stayed constant the last few years. The variable factor is the Met Council budget. Sanitary sewer charges to customers were increased in 2017 as a result of the rate study completed in 2016. In 2017 scheduled maintenance includes sewer lining, manhole repairs and televising the main sewer lines at an estimated cost of $50,000. Budgeted transfers are for the sewer funds share of the public works facility debt as the sewer department headquarters are located in that facility. Storm Sewer Fund ApprovedProjected 201620172018201920202021 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges810,183$ 802,000$ 802,000$ 802,000$ 802,000$ 802,000$ Other Revenue8,459 2,000 1,200 1,200 1,200 1,200 818,642 804,000 803,200 803,200 803,200 803,200 Total Revenues Current Expenses Salaries and Employee Benefits44,406 65,571 66,882 68,220 69,584 70,976 Materials, Supplies and Services89,537 59,050 60,231 61,436 62,664 63,918 Depreciation 227,000 227,000 227,000 227,000 227,000 227,000 Debt Service Payments 26,649 24,554 25,000 24,000 23,000 22,000 Transfer Out 220,874 120,874 120,875 120,875 120,875 120,875 608,466 497,049 499,988 501,531 503,124 504,769 Total Expenditures Net Income 210,176 306,951 303,212 301,669 300,076 298,431 The storm sewer fund has not had to raise rates since 2009 due to its strong financial position and there are currently no plans to raise them in the near future. Expenditures continue to be stable with no significant maintenance projects planned for 2017. Budgeted transfers are for the storm sewer funds share of the public works facility debt as the storm sewer department headquarters are located in that facility. 63 CITY OF HOPKINS GENERAL FUND BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues 5.82% Property Taxes$ 8 ,953,481$ 9 ,113,565$ 9 ,544,396$ 9 ,797,151$10,366,866 15.30% Intergovernmental 9 56,514 1 ,043,085 1 ,061,205 8 91,954 1 ,028,426 Licenses, Permits and Fines 7 80,586 7 06,791 9 00,057 5 75,575 7 00,82521.76% Interest Earnings 4 3,849 4 7,932 3 6,547 2 0,000 2 0,000 Charges for Services 2 95,066 2 85,911 4 06,998 1 88,900 2 15,65014.16% Franchise Fees 3 00,789 3 00,390 3 06,335 2 90,000 2 90,000 Miscellaneous 2 5,000 3 6,448 3 9,729 1 12,150 2 13,54590.41% Transfer In - Operating - - - - - Total Revenues11,355,284 8.08% 1 1,534,1221 2,295,2671 1,875,73012,835,312 Expenditures Salaries, Wages and Benefits 6.43% Salaries and Wages 6 ,300,801 6 ,403,425 6 ,744,621 6 ,631,655 7 ,058,003 5.18% Fringe Benefits 2 ,283,130 2 ,384,226 2 ,428,413 2 ,548,015 2 ,680,102 Materials, Supplies and Services 12.89% Professional & Technical Services 9 28,539 1 ,024,164 1 ,163,326 1 ,003,825 1 ,133,185 1.46% Utilities and Maintenance 8 24,897 7 12,335 8 28,854 8 41,190 8 53,510 Operations 3 58,119 4 43,911 4 84,999 4 94,651 6 41,72629.73% City Support Services 1 71,244 1 48,886 1 34,056 1 72,338 2 03,65518.17% 2.52% Supplies and Materials 8 39,475 7 20,984 7 85,273 7 25,018 7 43,300 Capital Outlay Buildings & Improvements- - - - - Vehicles - - - - - Office Furniture and Equipment - - - - 1 0,400 Equipment - 5 ,622 - 7 ,300 2 1,300191.78% Equipment Allocation9.00% 3 41,181 3 42,998 4 04,816 4 04,767 4 41,193 Total Expenditures12,047,386 7.46% 1 2,186,5511 2,974,3581 2,828,75913,786,374 Transfer Out 1 0,000 1 0,000 1 40,000 1 5,000 1 5,000 Reimbursed Expenditures-0.20% (993,858) (968,029) (921,218) (968,029) (966,062) Net Total Expenditures11,063,528 8.08% 1 1,228,5221 2,193,1401 1,875,73012,835,312 Excess (deficiency) of Rev. over Exp. 2 91,756 3 05,600 1 02,127 - - Ending Fund Balance 5 ,388,864 5 ,694,464 5 ,796,591 5 ,694,464 5 ,796,591 64 CITY OF HOPKINS UNALLOCATED Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Property Taxes$8,952,881$9,113,014$9,544,095$9,796,951$10,366,6665.82% Intergovernmental Revenue310,431409,112434,473434,454444,4262.30% 20,00020,000 Interest earnings 43,849 47,931 31,992 Franchise Fees300,789300,390306,355290,000290,000 Miscellaneous3595,839508250250 Total Revenues9,608,3099,876,28610,317,42310,541,65511,121,3425.50% Expenditures Materials, Supplies and Services Operations66,50069,7724.92% 15,33811,685 11,513 Operating Transfers Transfer from other funds - - - - - Transfer to other funds10,00010,000140,00015,00015,000 Total Expenditures25,33821,685151,51381,50084,7724.01% Indirectly Funded Amount9,582,9719,854,60110,165,91010,460,15511,036,5705.51% 65 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Unallocated PROGRAM SUMMARY The purpose of the unallocated program of the General Fund is to provide budget for unforeseen or unusual expenditures that may occur in a given year. The revenues recorded here are revenues that are not directly associated with another program within the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Monitor tax collections 2. Evaluate franchise fee structure 3. Maximize investment earnings FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Property Taxes$ 9,544,095 $ 9,796,951 $ 10,366,666 5.82% Intergovernmental 434,473 434,454 444,426 2.30% Interest Earnings 31,992 20,000 20,000 0.00% Franchise Fee 306,355 290,000 290,000 0.00% Miscellaneous 508 250 250 0.00% Total Revenues 10,317,423 10,541,655 11,121,342 5.50% EXPENDITURES: Other Services & Charges 11,513 66,500 69,772 4.92% Operating Transfer 140,000 15,000 15,000 -- Total Expenditures 151,513 81,500 84,772 4.01% NET TAX AND GENERAL REVENUE SUPPORTED$ 10,165,910 $ 10,460,155 $ 11,036,570 5.51% 66 CITY OF HOPKINS CITY COUNCIL BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20142015201620162017Change Expenditures Salaries, Wages and Benefits Salaries and Wages23,46225,50736,00432,00032,000 Fringe Benefits1,8802,3462,7232,4482,448 Materials, Supplies and Services Professional & Technical Services110110 -11015036.36% Operations41,65546,13343,79239,20042,5008.42% City Support Services - - - - --- Supplies and Materials4,1308,1717,8985,9505,800-2.52% Total Expenditures71,23782,26690,41779,70882,8984.00% Indirectly Funded Amount71,23782,26690,41779,70882,8984.00% The City Council Department accounts for the expenses of the mayor and council. 67 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM : Council Administration PROGRAM SUMMARY The Council Administration program of the Council Department establishes city policies, goals and objectives. It approves the budget and monitors the activities of the City Manager and City Attorney. The council also appoints members to boards and commissions. The City Council holds regular meetings and work sessions, receives input from staff, citizens and other interested parties. The Council controls policy through changes in the City Code and Legislative Policies. They control spending through their review and approval of the City budget and various contracts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: Work across all city departments and the community to implement the current Goals and Strategic Plan: (1) Enhance our Small-town Feel, (2) Promote Smart Urban Design and Walkability, and (3) Take it to Them (citizen engagement) 1. Promote city marketing efforts through the “Think Hopkins” campaign 2. Conduct 2017 Citizen’s Academy and Alumni event 3. Publish 2016 City Annual Report 4. Conduct 2016 State of the City event FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services38,727 $ $ 3 4,448$ 3 4,4480.00% Other Services & Charges51,690$ $ 4 5,260$ 4 8,4507.05% $90,417$82,898 $ 7 9,708 NET TAX AND GENERAL REVENUE SUPPORTED$90,417$ 4.00%82,898 $ 79,708 PERSONNEL: Number of FTE positionsMayor and 4 Council 68 CITY OF HOPKINS ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20142015201620162017Change Expenditures Salaries, Wages and Benefits 2.74% Salaries and Wages$ 402,682$ 4 29,997$ 4 45,790$ 3 91,225$401,961 165,0001.95% Fringe Benefits 152,468 1 44,464 1 32,770 1 61,849 Materials, Supplies and Services Professional & Technical Services 29,571 1 5,865 1 8,454 3 0,190 7 0,800134.51% Utilities and Maintenance11,97914,7902.00% 1 6,438 1 6,466 1 4,500 Operations17,102 1 4,301 4 4,197 3 0,015 7 2,671142.12% City Support Services1,7075.65% 1 ,805 2 ,229 2 ,230 2 ,356 Supplies and Materials5,4571.85% 4 ,979 4 ,588 5 ,960 6 ,070 Total Expenditures15.36% 620,967 6 27,849 6 64,494 6 35,969 7 33,648 Reimbursed Expenditures(104,000)(104,000)(104,000)(104,000)(104,000) Net Total Expenditures18.36% 516,967 5 23,849 5 60,494 5 31,969 6 29,648 Indirectly Funded Amount18.36% 516,967 5 23,849 5 60,494 5 31,969 6 29,648 The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services 69 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM : Administrative Services – Administration PROGRAM SUMMARY The Administration program of the Administrative Services Department provides leadership and support to all city programs and operations. Administration controls and directs the City’s affairs. It responds to citizen concerns and participates in affiliated organizations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Encourage innovative, creative thinking and inform the City Council and community of new programs and activities. 2. Develop leadership team to ensure the city’s long term viability through an engaged and empowered workforce. 3. Continue to operate and enhance the employee engagement & wellness program. 4. Increase ways for community engagement. 5. Prepare a legislative agenda, monitor legislative issues, and lobby on issues affecting the City FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services$ 218,698 $ 226,429 $ 232,725 2.78% Other Services & Charges 24,483 25,443 32,469 27.61% Reimbursed Expenditures (66,000) (66,000) (66,000)0.00% $ 177,181 $ 185,872 $ 199,194 NET TAX AND GENERAL REVENUE SUPPORTED$ 177,181 $ 185,872 $ 199,194 7.17% PERSONNEL: Number of FTE positions2.052.052.05 PROGRAM: Administrative Services – Personnel PROGRAM SUMMARY Personnel provides human resource support for departments and employees. This includes coordination of staff recruitment, coordination of employee benefit programs and conducting employee relations’ activities for all City employees. Another aspect of this program is ensuring compliance with state, federal and local laws regarding employment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Complete classification and compensation study. 2. Successfully engage new employees. 3. Assist the City Manager with staff development opportunities. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services $ 51,265 $ 56,461 $ 56,956 0.88% Other Services & Charges 5,048 18,647 55,408 197.14% Reimbursed Expenditures (16,000) (16,000) (16,000)0.00% $ 40,313 $ 59,108 $ 96,364 NET TAX AND GENERAL REVENUE SUPPORTED$ 40,313 $ 59,108 $ 96,364 63.03% PERSONNEL: Number of FTE positions0.40.40.4 70 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Administrative Services – Wellness PROGRAM SUMMARY The Wellness program of the Administrative Services Department provides support and activities to encourage overall general good health of city employees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: Goal 2, Strategy 3 – Healthy City Initiatives: 1. Continue to provide healthy guidance to employees. 2. Provide at least one low cost wellness event six times a year. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Other Services & Charges 2,095 2,000 2,500 25.00% NET TAX AND GENERAL REVENUE SUPPORTED$ 2,095 $ 2,000 $ 2,500 25.00% PERSONNEL: Number of FTE positions000 PROGRAM: Administrative Services - Information Services PROGRAM SUMMARY The Information Services program of the Administrative Services Department provides all network hardware and software support for the City. It also provides individual city employees with hardware and software support. The internal web site is designed and maintained through this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Implement final Springbrook module and PermitWorks software. 2. Implement new backup servers. 3. Finish implementing distributed redundant email servers. 4. Improve event log storage and correlation. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services $286,048 $270,184 $277,280 2.63% Other Services & Charges 53,427 36,805 76,310 107.34% Reimbursed Expenditures (22,000) (22,000) (22,000)0.00% $317,475 $284,989 $331,590 NET TAX AND GENERAL REVENUE SUPPORTED $317,475 $284,989 $331,590 16.35% PERSONNEL: Number of FTE positions2.553.03.0 71 CITY OF HOPKINS FINANCE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Miscellaneous$21,536$17,643$19,906$14,550$14,8502.06% Expenditures Salaries, Wages and Benefits Salaries and Wages286,613287,326279,040286,399294,9923.00% Fringe Benefits92,65897,69498,382106,83798,742-7.58% Materials, Supplies and Services Professional & Technical Services54,847149,156122,91650,03555,0359.99% Utilities and Maintenance24,76024,2392,95423,30023,300 Operations8,56812,52710,11113,73013,730 City Support Services390356394394394 Supplies and Materials14,33820,5506,2018,1106,200-23.55% Capital Outlay Equipment Allocation5,7669501,2181,2171,3279.04% Total Expenditures487,940592,798521,216490,022493,7200.75% Reimbursed Expenditures-0.92% (229,776) (232,808) ( 196,994) (213,029) (211,062) Net Total Expenditures258,164359,990324,222276,993282,6582.05% Indirectly Funded Amount236,627342,347304,316262,443267,8082.04% The Finance department consists of six programs. They are budgeting, Debt Management, General Accounting, Payroll, Tax Increment Financing Reporting, and Utility Billing. 72 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Debt PROGRAM SUMMARY The Debt program of the Finance Department issues, records and maintains debt for the City of Hopkins and the Hopkins Housing and Redevelopment Authority. Debt is issued in accordance with state statute and city charter. Debt is maintained at a manageable level for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Maintain the current bond rating of AA+ through conservative financial management and accurate reporting of financial and economic conditions of the city. 2. Project future debt needs and ability. 3. Prepare documents and work with financial advisors for 2017 bond issue(s). 4. Analyze possibilities of debt refunding(s). 5. Prepare annual debt reporting for county as required by state statutes FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services$ 12,636 $ 13,436 $ 13,810 2.78% Other Services & Charges 1,529 1,679 1,682 0.18% Reimbursed Expenditures (15,115) (15,115) (15,118)0.02% $ (950) $ - $ 374 NET TAX AND GENERAL REVENUE SUPPORTED $ (950) $ - $ 374 -- PERSONNEL: Number of FTE positions0.10.10.1 In January 2014 the City was AA+ upgraded to a credit rating by Standard & Poor’s. A certificate recognizing this achievement was presented to the City by the City’s financial advisors. The AA+ rating was reaffirmed for each of the bond issues sold in 2016. 73 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Accounting PROGRAM SUMMARY The Accounting program of the Finance Department provides financial management for the City and the Housing and Redevelopment Authority. It provides support services to other departments in the City through initiating fiscal plans, implementation and control of those plans, accounting and analysis of transactions. Accounting manages the city’s day-to-day accounting transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The program prepares monthly and quarterly financial statements and compiles the year-end comprehensive financial report. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: ActualBudgetBudgetChange 1. Submit CAFR for the GFOA award program. REVENUES: 2. Provide accurate and timely month-end and quarterly Miscellaneous $ 9,116 $ 5,550 $ 5,850 5.41% financial reports. 3. Update the Financial Management Plan EXPENDITURES: Personnel Services $180,382 $194,610 $191,851 -1.42% 4. Prepare 20-year Capital Improvement Plan. Other Services & Charges 76,900 55,209 60,355 9.32% 5. Prepare 20-year Equipment Replacement Plan Reimbursed Expenditures (64,000) (64,000) (64,000)0.00% 6. Update actuarial study on OPEB obligations. $193,282 $185,819 $188,206 1.28% 7. Update CAFR on city website. 8. Complete the implementation of new finance software NET TAX AND GENERAL REVENUE SUPPORTED $184,166 $180,269 $182,356 1.16% PERSONNEL: Number of FTE positions2.02.01.75 PROGRAM: Finance – Payroll PROGRAM SUMMARY The Payroll program of the Finance Department completes the biweekly payroll, maintains all payroll records and completes the payroll quarterly reports. It also provides support services to employees regarding payroll issues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Assist employees with payroll and benefit issues/questions. 2. Provide accurate and timely payroll and reports. 3. Work with insurance company to manage insurance programs. 4. Prepare benefit open enrollment information and assist employees with questions regarding their benefit options. 5. Provide employee benefit orientations for new hires FY 2016FY 2017 FY 2016pprovedpprovedPercent AA ActualBudgetBudgetChange EXPENDITURES: Personnel Services$ 86,429 $ 95,789 $ 96,403 0.64% Other Services & Charges 2,625 6,385 6,406 0.33% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $ 69,054 $ 82,174 $ 82,809 NET TAX AND GENERAL REVENUE SUPPORTED$ 69,054 $ 82,174 $ 82,809 0.77% PERSONNEL: Number of FTE positions0.750.751.0 74 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – TIF Administration FY 2016FY 2017 PROGRAM SUMMARY FY 2016ApprovedApprovedPercent The Tax Increment Financing Administration BudgetBudgetChange Actual program of the Finance Department records and EXPENDITURES: reports tax increment program activities. It is Personnel Services $ 12,978 $ 13,436 $ 13,810 2.78% charged with the responsibility of ensuring Other Services & Charges 8,878 3,504 3,507 0.09% compliance with state statutes and guidelines. Reimbursed Expenditures (16,940) (16,940) (16,943)0.02% $ 4,916 $ - $ 374 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN NET TAX AND GENERAL 2076: REVENUE SUPPORTED $ 4,916 $ - $ 374 -- 1. Continue analysis of Tax Increment Financing funds. PERSONNEL: 2. Assist with implementation of new TIF districts. 3. Prepare annual Office of the State Auditor Number of FTE positions0.10.10.1 reports. PROGRAM: Finance – Utility Billing PROGRAM SUMMARY The Utility Billing program of the Finance Department prepares and issues monthly utility bills for collection of utility service fees from its customers.Utility records are maintained and updated within this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Assist customers with utility billing issues and questions – change of service, change of ownership, etc. 2. Promote automatic payment options to increase usage of automatic payment. 3. Implement new tiered water rates. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 10,788 $ 9,000 $ 9,000 0.00% EXPENDITURES: Personnel Services$ 70,454 $ 75,965 $ 77,860 2.49% es 52,942 30,009 28,036 -6.57% Other Services & Charg Reimbursed Expenditures (80,939) (96,974) (95,001)-2.03% $ 42,457 $ 9,000 $ 10,895 21.06% NET TAX AND GENERAL REVENUE SUPPORTED$ 31,669 $ - $ 1,895 -- PERSONNEL: Number of FTE positions1.651.651.65 75 CITY OF HOPKINS LEGAL BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Court Fines$ 132,328$ 144,676$ 135,202$ 125,000$ 125,000 Expenditures Materials, Supplies and Services Professional & Technical Services171,685156,835196,904150,000150,000 Operations - - - - - Total Expenditures171,685156,835196,904150,000150,000 Indirectly Funded Amount39,35712,15961,70225,00025,000 The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 76 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Legal PROGRAM SUMMARY The Legal department represents the City in court, at City Council meetings and direct contact with staff and the general public. The firm of Kennedy & Graven is retained on a fee per hour basis. They respond to legal summons and/or initiate action on behalf of the City. Written and oral inquiries are made by staff, council, citizens and other interested parties. The city engages other law firms when necessary. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City 4. Assist City staff with development projects FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Court Fines$ 135,202 $ 125,000 $ 125,000 0.00% EXPENDITURES: Other Services & Charges$ 196,904 $ 150,000 $ 150,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED$ 61,702 $ 25,000 $ 25,000 0.00% PERSONNEL: The City contracts with a legal firm to represent the City. 77 CITY OF HOPKINS MUNICIPAL BUILDINGS Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Expenditures Salaries, Wages and Benefits Salaries and Wages100,73396,996101,449101,607104,6553.00% Fringe Benefits42,97043,27244,83453,46754,2171.40% Materials, Supplies and Services Professional & Technical Services37,94840,86536,39540,50042,0003.70% Utilities and Maintenance119,822120,293179,656132,170139,3505.43% Operations2,7052,6851,4772,3002,300 City Support Services18,32014,17417,87718,37718,7702.14% Supplies and Materials13,29914,40017,97917,19017,4401.45% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Total Expenditures335,797332,685399,667365,611378,7323.59% Reimbursed Expenditures(32,000) (32,000) (32,000) (32,000)(32,000) Net Total Expenditures303,797300,685367,667333,611346,7323.93% Indirectly Funded Amount303,797300,685367,667333,611346,7323.93% The Municipal Building Department consists of building maintenace. 78 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Municipal Building – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Municipal Budget covers City Hall and the Police Department. In house maintenance personnel and contractual custodial services maintain these buildings and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continuation of Green Initiatives within City Hall. 2. Explore lobby upgrade. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services$ 146,283 $ 155,074 $ 158,872 2.45% Other Services & Charges 253,384 210,537 219,860 4.43% Reimbursed Expenditures (32,000) (32,000) (32,000)0.00% $ 367,667 $ 333,611 $ 346,732 3.93% NET TAX AND GENERAL REVENUE SUPPORTED$ 367,667 $ 333,611 $ 346,732 3.93% PERSONNEL: Number of FTE positions1.451.451.45 thst City Hall at 11 Ave and 1 St 79 CITY OF HOPKINS COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Licenses$13,292$14,941$15,305$12,000$13,0008.33% Permits588,076481,338559,807351,010379,5108.12% Current Services4,92031,801290,3333,550106,0502887.32% Expenditures Salaries, Wages and Benefits Salaries and Wages616,753632,989717,434637,597656,7253.00% Fringe Benefits189,964202,191209,193201,967210,1254.04% Materials, Supplies and Services Professional & Technical Services175,981172,119177,421198,930185,745-6.63% Utilities and Maintenance11,5258,3488,04814,05014,5603.63% Operations24,28323,22622,35836,32581,595124.62% City Support Services40,36136,11040,86442,19442,194 Supplies and Materials8,5987,87112,94215,47511,925-22.94% Capital Outlay Office Furniture and Equipment - - - - - Equipment Allocation6,9073,5294,3054,3054,6918.97% Total Expenditures1,074,3721,086,3831,192,5651,150,8431,207,5604.93% Reimbursed Expenditures (61,000) (61,000) (61,000) (61,000) (61,000) Net Total Expenditures1,013,3721,025,3831,131,5651,089,8431,146,5605.20% Indirectly Funded Amount407,085497,303266,120723,283648,000-10.41% The Community Service department is made up of four main programs. They ar e Reception, Assessing, Inspections, and City Clerk. 80 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Receptionist PROGRAM SUMMARY FY 2016FY 2017 FY 2016ApprovedApprovedPercent The Receptionist program of the Community Services ActualBudgetBudgetChange Department answers calls at main switchboard and route EXPENDITURES: calls to various departments. Directs walk-in customers to Personnel Services $ 5 7,322$ 4 0,973$ 4 1,9572.40% Other Services & Charges -2.51% the appropriate department. Sales of dog licenses and 1 ,424 1 ,1151,087 $ 58,746 $ 42,088 $ 43,044 parking permits occur in this program. Receipts are NET TAX AND GENERAL accepted for payment of building permits and utility bills. The REVENUE SUPPORTED $ 58,746 $ 42,088 $ 43,044 2.27% program also provides clerical and secretarial services to other departments. PERSONNEL: Number of FTE positions1.451.451.45 OBJECTIVES TO BE ACCOMPLISHED IN 2017: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue to provide excellent customer service PROGRAM: Community Services – Assessing PROGRAM SUMMARY The Assessing Department assists property owners with Homestead classification and works with Hennepin County on property valuations. The department also prepares special assessment rolls and responds to property owner concerns and questions. OBJECTIVES TO BE ACCOMPLISHED IN 2017: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Prepare special assessment rolls for certification on taxes. 2. Assist property owners with property related issues. 3. Maintain the Property and Contact Information in the computer system. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 11,043 $ 2,000 $ 3,000 50.00% EXPENDITURES: Personnel Services $ 120,713 $ 94,233 $ 99,093 5.16% Other Services & Charges 142,278 136,384 145,229 6.49% Reimbursed Expenditures (24,000) (24,000) (24,000)0.00% $ 238,991 $206,617 $220,322 6.63% NET TAX AND GENERAL REVENUE SUPPORTED $ 227,948 $204,617 $217,322 6.21% PERSONNEL: The Special Assessment Clerk is Number of FTE positions1.051.051.05 available to assist with property tax and assessing related ti 81 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – City Clerk PROGRAM SUMMARY The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business licenses applications are reviewed prior to issuance. The City Clerk is also the purchasing officer of the city. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange MAJOR OBJECTIVES TO BE ACCOMPLISHED IN REVENUES: 2017: Licenses $ 7,780 $ 6,000 $ 7,050 17.50% Goal 2, Strategy 2 – Go Green EXPENDITURES: 1. Purchase “green” or recycled products when Personnel Services $ 82,602 $ 68,220 $ 68,220 0.00% available if the pricing is competitive and product Other Services & Charges 24,339 32,554 77,040 136.65% meets quality standards. Reimbursed Expenditures (37,000) (37,000) (37,000)0.00% 2. Ensure that the City Document Archives section $ 69,941 $ 63,774 $108,260 69.76% of the City’s website contains the most up to date NET TAX AND GENERAL information in all areas listed. REVENUE SUPPORTED $ 62,161 $ 57,774 $101,210 75.18% 3. Review and update where needed applications and forms that are available on the Web site. PERSONNEL: Number of FTE positions0.750.750.75 PROGRAM: Community Services – Elections PROGRAM SUMMARY The Elections program of the Community Services Department provides supervision of elections, registers voters, and certifies election results. All state and federal legislation is reviewed, judges are trained, and equipment and polling places are prepared. After elections ballots are counted and the results certified to the County and State of Minnesota. Throughout the year citizens are registered to vote. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: FY 2016FY 2017 1. Recruit and train additional Election Judges FY 2016ApprovedApprovedPercent for the 2017 Local Election. Offer some ActualBudgetBudgetChange part-time positions as requested by several REVENUES: current Election Judges who may be unable Charges for service $ 717 $ - $ 20,000 --- to complete a 15 or 16 hour day. 2. Work with Hennepin County City to review EXPENDITURES: Personnel Services $ 55,562 $ 41,351 $ 41,351 0.00% voting equipment and the possible Other Services & Charges 8,364 42,143 16,443 -60.98% replacement. $ 63,926 $ 83,494 $ 57,794 -30.78% 3. Work to better organize information and supplies for Election Judges use on Election NET TAX AND GENERAL Day. REVENUE SUPPORTED $ 63,209 $ 83,494 $ 37,794 -54.73% PERSONNEL: Number of FTE positions0.350.350.35 82 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Building Code Inspection PROGRAM SUMMARY The Building Code Inspection program of the Community Services Department inspects all new or remodeled buildings to insure they meet the minimum requirements of the state building code. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases and an issuance of a certificate of occupancy. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ACCOMPLISHED IN ActualBudgetBudgetChange 2017: REVENUES: Goal 1, Strategy 3- Provide Accessible and Friendly License, Permits, Charges $ 513,162 $150,460 $239,460 59.15% City Services: EXPENDITURES: 1. Work on closing out aging permits from the past Personnel Services $ 195,731 $203,444 $203,444 0.00% years. Other Services & Charges 76,663 79,866 81,381 1.90% 2. Start Saving all permits to Laserfiche $ 272,394 $283,310 $284,825 0.53% 3. Look at Updating Permit Fees 4. Design New Commercial Tenant Finish Handout NET TAX AND GENERAL REVENUE SUPPORTED $(240,768) $132,850 $ 45,365 -65.85% 5. Implement Permit Works Software 6. Train staff on Permit Works Software PERSONNEL: Number of FTE positions2.052.052.05 PROGRAM: Community Services – Fire Code Inspection PROGRAM SUMMARY The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. FY 2016FY 2017 MAJOR OBJECTIVES TO BE ACCOMPLISHED FY 2016ApprovedApprovedPercent IN 2017: ActualBudgetBudgetChange 1. Continue the fire prevention inspection REVENUES: program. Permits $ 12,714 $ 4,000 $ 6,000 50.00% -- 2. Implement new fire code software. EXPENDITURES: Personnel Services $ 42,778 $ 40,468 $ 40,468 0.00% Other Services & Charges 429 402 424 5.47% $ 43,207 $ 40,870 $ 40,892 0.05% NET TAX AND GENERAL REVENUE SUPPORTED $ 30,493 $ 36,870 $ 34,892 -5.36% PERSONNEL: Number of FTE positions0.350.350.35 83 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Heating and Plumbing Code Inspection PROGRAM SUMMARY FY 2016FY 2017 The Heating and Plumbing Code Inspection program FY 2016ApprovedApprovedPercent of the Community Services Department inspects new ActualBudgetBudgetChange and remodeled buildings for heating and plumbing REVENUES: compliance. The process begins with easily Permits $ 147,124 $ 53,000 $ 68,000 28.30% accessible customer service at the inspections counter and continues with plan review; permit EXPENDITURES: Personnel Services $ 90,834 $ 92,564 $ 92,564 0.00% issuance, inspection of construction phases. Become Other Services & Charges 2,697 4,402 4,394 -0.18% familiar with new gas, mechanical and energy code. $ 93,531 $ 96,966 $ 96,958 -0.01% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN NET TAX AND GENERAL 2017: REVENUE SUPPORTED $ (53,593) $ 43,966 $ 28,958 -34.14% PERSONNEL: 1. PermitWorks Conversion Number of FTE positions1.01.01.0 2. PermitWorks Training 3. Close Out Aging Permits 4. Look at Updating Permit Fees PROGRAM: Community Services – Housing Inspection PROGRAM SUMMARY The Housing Inspection program of the Community Services Department inspects all existing buildings from time to time to insure they are maintained safe in accordance with city housing code. Rental properties are inspected every five years to identify hazards to the occupants and to insure buildings are well maintained and to improve on the city’s housing stock. Homes being sold in the community must be evaluated. A listing of certified evaluators for the Truth in Housing program are maintained. Home sales are monitored to insure compliance. AJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: M Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. PermitWorks Conversion 2. Update Truth In Housing guidelines. 3. Retain all new rental inspection results on Laserfiche 4. Update Rental Licensing and Inspection Fees FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: License, permits, charges $ 144,784 $132,750 $136,700 2.98% EXPENDITURES: Personnel Services $ 162,220 $172,918 $172,918 0.00% Other Services & Charges 7,591 7,935 8,194 3.26% $ 169,811 $180,853 $181,112 0.14% NET TAX AND GENERAL REVENUE SUPPORTED $ 25,027 $ 48,103 $ 44,412 -7.67% PERSONNEL: Number of FTE positions1.821.821.82 84 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Miscellaneous Community Inspection PROGRAM SUMMARY The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. Track responses to citizens and results of the complaint. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ACCOMPLISHED IN ActualBudgetBudgetChange 2017: REVENUES: Goal 1, Strategy 3- Provide Accessible and Friendly Citations, charges for service $ 15,101 $ 8,350 $ 8,350 0.00% City Services: 1. Continue neighborhood sweeps and respond to EXPENDITURES: citizen complaints in a prompt and courteous Personnel Services $ 77,103 $ 83,208 $ 83,208 0.00% Other Services & Charges 753 3,793 3,833 1.05% manner. $ 77,856 $ 87,001 $ 87,041 0.05% 2. Send out newsletter in spring regarding sweeps potential violations. NET TAX AND GENERAL 3. Convert Incode software. Learn PermitWorks REVENUE SUPPORTED $ 62,755 $ 78,651 $ 78,691 0.05% software. PERSONNEL: Number of FTE positions0.860.860.86 PROGRAM: Community Services – Vacant Property Management PROGRAM SUMMARY The Vacant Property Management program of the Community Services Department MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to educate mortgage banks, property managers, realtors and vacant property owners on why we want them to register their property. 2. Send out enforcement letters and billings in a timely manner 3. PermitWorks Conversion FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Property Registrations $ 13,000 $ 10,000 $ 10,000 0.00% EXPENDITURES: Personnel Services $ 1,985 $ 2,185 $ 2,185 0.00% Other Services & Charges 9 2,685 2,685 0.00% $ 1,994 $ 4,870 $ 4,870 0.00% NET TAX AND GENERAL REVENUE SUPPORTED$ (11,006)$ (5,130)$(5,130)-- PERSONNEL: Number of FTE positions0.020.020.02 85 CITY OF HOPKINS POLICE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Intergovernmental$334,859$366,289$349,975$219,000$314,00043.38% Licenses96,73177,94586,99995,60095,600 Court Fines/Forfeitures71,69349,09865,80651,00051,000 Penalties31549047500500 Current Service29,26722,78715,70533,00033,000 Miscellaneous2,6204,28421,5272,0002,000 Expenditures Salaries, Wages and Benefits Salaries and Wages2,783,2772,830,8742,943,2222,961,0213,173,3787.17% Fringe Benefits1,055,0811,102,1041,141,7701,158,7851,223,7725.61% Materials, Supplies and Services Professional & Technical Services69,988108,69889,823102,290102,290 Utilities and Maintenance94,713103,378101,133118,370122,3703.38% Operations94,71776,505117,49893,137154,20765.57% City Support Services113,987122,015146,416146,416158,0307.93% Supplies and Materials174,111171,814199,650157,715161,0552.12% Capital Outlay Office Furniture and Equipment ----- Equipment----- Total Expenditures4,385,8754,515,3894,739,5124,737,7345,095,1027.54% Indirectly Funded Amount3,850,3913,994,4974,199,4534,336,6344,599,0026.05% 86 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Administration PROGRAM SUMMARY To be recognized as a progressive law enforcement agency, striving to enhance the quality of life for all citizens. We seek to collaborate with all stakeholders to continually improve our community. Hopkins Police Department will recruit, hire, and retain the most qualified personnel to fulfill this vision. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. To provide effective, efficient, and professional police services to the community. 2. Continue to produce the highest ethical standards and transparent police department. 3. Create trust and partnerships with our multi-cultural community. 4. Promote a proactive, problem-solving culture that focuses on crime prevention. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Miscellaneous $ 237 $ - $ - 0.00% EXPENDITURES: Personnel Services$309,332 $ 3 25,518$ 3 48,6637.11% Other Services & Charges$116,360 $ 1 21,686$ 1 46,15420.11% $ 425,692 $ 447,204 $ 494,817 NET TAX AND GENERAL REVENUE SUPPORTED$ 425,455 $ 447,204 $ 494,817 10.65% PERSONNEL: Number of FTE positions2.152.152.15 87 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police –Patrol PROGRAM SUMMARY To provide public safety by reducing crime, enhancing the quality of life for all citizens, while working collaboratively with all stakeholders in the community. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE BudgetBudgetChange Actual ACCOMPLISHED IN 2017: REVENUES: 1. Provide the highest level of Licenses $ 4,880 $ 10,000 $ 10,000 0.00% professional customer service to Intergovernmental Revenue 322,662 219,000 314,000 43.38% the public with each and every Fines & Forfeits 48,807 51,500 51,500 0.00% contact. Charges for Service 25,945 15,000 15,000 0.00% 2. Create trust and partnerships with Misecllaneous 1,967 1,500 1,500 0.00% our multi-cultural community. $ 404,261 $ 297,000 $ 392,000 31.99% 3. Provide proactive criminal EXPENDITURES: enforcement through intelligence- Personnel Services $2,824,837 $2,854,082 $3,098,085 8.55% lead policing efforts. Other Services & Charges 339,779 290,275 298,476 2.83% 4. Committed to identifying and $3,164,616 $3,144,357 $3,396,561 8.02% solving problems through building positive community partnerships NET TAX AND GENERAL 5.52% REVENUE SUPPORTED $2,760,355 $2,847,357 $3,004,561 PERSONNEL: Number of FTE positions23.623.623.6 PROGRAM: Police – SWAT Team PROGRAM SUMMARY The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Committed to the highest level of training standards and performance standards. 2. Build upon strong working relationships with other consortium SWAT members and partners. 3. Continue to be a leader in the consortium of SWAT teams. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Miscellaneous $ 1,352 $ - $ - 0.00% EXPENDITURES: Personnel Services47,474$ $57,810$ 2.59%59,309 Other Services & Charges$ 25,041$21,461$ 2.34%21,963 $ 72,515 $ 79,271 $ 81,272 NET TAX AND GENERAL 2.52% REVENUE SUPPORTED $ 71,163 $ 79,271 $ 81,272 PERSONNEL: Number of FTE positions0.450.450.45 88 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Reserves PROGRAM SUMMARY The Hopkins Police Reserve Unit provides FY 2016FY 2017 FY 2016ApprovedApprovedPercent civilian volunteers with exceptional training to BudgetBudgetChange Actual assist the police department with civic events, EXPENDITURES: community-building and outreach efforts. Personnel Services10,071$ 12,458$ 12,747$ 2.32% Other Services & Charges1,583$ 8,016 MAJOR OBJECTIVES TO BE $ $ 8 ,0410.31% $ 11,654 $ 20,474 $ 20,788 ACCOMPLISHED IN 2017: NET TAX AND GENERAL 1. Continue to recruit individuals with REVENUE SUPPORTED $ 11,654 $ 20,474 $ 20,788 1.53% diverse backgrounds. PERSONNEL: 2. Continue to supplement uniformed patrol Number of FTE positions0.050.050.05 with calls for service and problem-solving efforts. 3. Utilize Reserves in outreach and in police and community relations. 4. Utilize Reserve personnel whenever feasible to alleviate uniformed patrol calls for service. PROGRAM: Police – Investigations PROGRAM SUMMARY The Investigations Division of the Police Department conducts thorough criminal investigations on all criminal activity that has occurred in Hopkins, while working with other police agencies to identify suspects and work collaboratively to prevent future crime. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue professional development by training officers in the Investigations Division of the Hopkins Police Department. 2. Continue to problem solve and reduce crime through crime analysis and intelligence-lead policing. 3. Work in partnership with other law enforcement agencies to identify crime trends and patterns on a local and regional level. 4. Continue to work in partnership with all divisions within the Police Department. 5. Continue to work in partnership with the County Attorney’s Office to successfully prosecute individuals involved in criminal behavior. FY 2016FY 2017 ApprovedApprovedPercent FY 2016 ActualBudgetBudgetChange REVENUES: Licenses$ 73,319 $ 75,600 $ 75,600 0.00% EXPENDITURES: Personnel Services$ 401,583 $ 376,055 $ 386,036 2.65% Other Services & Charges 76,721 89,350 110,948 24.17% $ 478,304 $ 465,405 $ 496,984 6.79% NET TAX AND GENERAL REVENUE SUPPORTED$ 404,985 $ 389,805 $ 421,384 8.10% PERSONNEL: Number of FTE positions3.93.93.9 89 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Southwest Hennepin Drug Task Force PROGRAM SUMMARY The Southwest Hennepin Drug Task Force is a multi-jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance, and other covert activities. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to work jointly with the Criminal Investigations Unit to identify suspects engaged in criminal activity. 2. Work with all divisions of the Police Department and communicate current crime trends and/or possible suspects residing in the City. 3. Continue to work nuisance property and crime free multi-housing issues with the Police Services Liaison to remove problem tenants from units who continue to use illegal drugs. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Forfeitures$ 15,000 $ - $ - -- EXPENDITURES: Personnel Services$ 899 $ 123,396 $ 126,585 2.58% Other Services & Charges 5,191 5,991 11,561 92.97% $ 6,090 $ 129,387 $ 138,146 6.77% NET TAX AND GENERAL REVENUE SUPPORTED$ (8,910)$ 129,387 $ 138,146 6.77% PERSONNEL: Number of FTE positions111 90 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Crime Prevention Specialist PROGRAM SUMMARY The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs including Neighborhood Watch, National Night Out, Crime-free Multi-housing and numerous other outreach initiatives. In addition, the Police Services Liaison administers the alarm program, nuisance property program, review and revisions of various ordinances and grant research, application and administration and is the staff liaison to SCIP, One Voice, HBCA, Rental Community Engagement Program and other committees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Increase participation in Crime Free Multi-Housing program & Neighborhood Watch. 2. Partner with businesses and neighborhoods to reduce crime. 3. Coordinate information sharing with Police/city staff regarding nuisance properties and other quality of life issues. 4. Coordinate efforts with Joint Community Police Partnership (JCPP) Community Liaison. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses $ 3,800 $ 5,000 $ 5,000 0.00% Intergovernmental Revenue - - - Miscellaneous 452 - - Donations - 500 500 0.00% $ 4,252 $ 5,500 $ 5,500 0.00% EXPENDITURES: Personnel Services $ 76,448 $ 98,928 $ 101,484 2.58% Other Services & Charges 11,388 14,794 14,819 0.17% $ 87,836 $ 113,722 $ 116,303 2.27% NET TAX AND GENERAL 2.38% REVENUE SUPPORTED $ 83,584 $ 108,222 $ 110,803 National Night Out PERSONNEL: Number of FTE positions0.850.850.85 New American Academy Cops ‘n Kids Fishing 91 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Support Services PROGRAM SUMMARY This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. FY 2016FY 2017 MAJOR OBJECTIVES TO BE FY 2016ApprovedApprovedPercent ACCOMPLISHED IN 2017: ActualBudgetBudgetChange 1. Continue to refine processes for better REVENUES: efficiency of records maintenance. Licenses $ 5,000 $ 5,000 $ 5,000 0.00% 2. Train on new RMS reporting software Charges for Service 9,326 18,000 18,000 0.00% to develop reports to provide more data to $ 14,326 $ 23,000 $ 23,000 0.00% the public. EXPENDITURES: 3. Continue to provide weekly crime Personnel Services234,779$ 271,559$ 278,601$ 2.59% statistics and learning additional crime Other Services & Charges4,487 7,412 7,539 1.71% analysis software and mapping tools. $ 239,266 $ 278,971 $ 286,140 4. Maintain efficiency with report flow to NET TAX AND GENERAL respective agencies. 2.80% REVENUE SUPPORTED $ 224,940 $ 255,971 $ 263,140 PERSONNEL: Number of FTE positions3.453.453.45 PROGRAM: Police – Systems Management PROGRAM SUMMARY The Systems Management program of the Police Department is under the supervision of the city’s IT department who oversees the maintenance of all police computer system networks, and state communications interfaces. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to provide exceptional services to all stakeholders. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Other Services & Charges$55,230 $ 5 8,943$ 6 4,0918.73% NET TAX AND GENERAL REVENUE SUPPORTED$55,230$ 58,943$ 64,0918.73% PERSONNEL: Number of FTE positions000 92 CITY OF HOPKINS FIRE BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Licenses & Permits$1,880$2,410$265$3,500$3,500 State Aid93,488102,657105,99995,000100,0005.26% Federal Grant68,859 - - - - County Grant - - - - - Administrative Citations -900300100300 Current Service6,58011,9347,2223,0003,000 Donations2,400 -2,240 - - Miscellaneous3,696 -3,1003,5003,500 176,903117,901119,126105,100110,3004.95% Expenditures Salaries, Wages and Benefits Salaries and Wages391,544362,214452,565437,559450,6863.00% Fringe Benefits189,093200,521259,721236,808242,9842.61% Materials, Supplies and Services Professional & Technical Services48,53434,54659,73339,45071,64781.61% Utilities and Maintenance83,75372,34974,28757,60055,500-3.65% Operations72,619121,51756,48866,10063,800-3.48% City Support Services135,919142,717161,944161,945175,5358.39% Supplies and Materials161,787104,428110,064105,648105,580-0.06% Capital Outlay Equipment - - - -10,800 Total Expenditures1,083,2511,038,2921,174,8011,105,1101,176,5326.46% Indirectly Funded Amount906,348920,3911,055,6751,000,0101,066,2326.62% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 93 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Fire – Fire Department PROGRAM SUMMARY The Fire Department includes Emergency Medical Services (EMS), Fire Prevention/Suppression programs. The EMS program supports the Police Department in managing responses to medical emergencies. The Fire Department responds to all life threatening situations and when there are no police officers available to respond. Fire suppression is the response to all fires, hazardous materials, special hazards and special rescue incidents in the city and fire prevention is the enforcement of the fire code, and the review and inspection of new construction. It also provides for public education and files reports with the State Fire Marshall on department activity, property loss or death due to fire emergencies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Develop Long Term Strategic and Marketing plan for the department. 2. Recruitment and Retention of members. 3. Review and Receive of Emergency Operations plan. 4. Develop and Implement a Mental Health and PTSD program for Fire Department Staff. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses & Fines $ 565 $ 3,600 $ 3,800 5.56% Intergovernmental Revenue 105,999 98,500 100,000 1.52% Charges for Service 10,322 6,500 6,500 0.00% Donations 2,240 - - 0.00% $ 119,126 $ 108,600 $ 110,300 1.57% EXPENDITURES: Personnel Services $ 712,286 $ 674,367 $ 693,670 2.86% Other Services & Charges 462,516 430,743 472,062 9.59% Capital Outlay - - 10,800 #DIV/0! $1,174,802 $1,105,110 $1,176,532 6.46% NET TAX AND GENERAL REVENUE SUPPORTED $1,055,676 $ 996,510 $1,066,232 7.00% PERSONNEL: Number of FTE positions1.253.253.25 Volunteer Firefighters353333 94 CITY OF HOPKINS PUBLIC WORKS BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Licenses and Permits$5,435$23,660$23,965$9,415$27,115188.00% Intergovernmental145,245165,027170,757140,000170,00021.43% Charges for Services9,2837,6437,7492,2502,75022.22% Other Miscellaneous4,7255,6094,9314,6004,600 Sales of Fixed Assets - - - - - Expenditures Salaries, Wages and Benefits Salaries and Wages1,252,71811.31% 1 ,263,676 1,269,248 1,283,681 1,428,831 Fringe Benefits472,09411.01% 4 70,864 465,599 510,004 566,142 Materials, Supplies and Services 300,162-3.15% Professional & Technical Services 2 42,633 397,563 355,900 344,700 Utilities and Maintenance331,630-1.10% 4 15,450 407,051 419,700 415,090 Operations2,940-3.78% 4 ,155 38,697 13,230 12,730 City Support Services159,6485.38% 1 59,288 179,170 179,171 188,814 Supplies and Materials346,0916.43% 3 93,414 384,933 349,635 372,128 Capital Outlay Buildings & Improvements- - - - - Equipment5,62243.84% - - 7,300 10,500 Total Expenditures2,870,9057.06% 2 ,949,480 3,142,261 3,118,621 3,338,935 Reimbursed Expenditures(531,857)(538,000) (507,224) (538,000) (538,000) Net Total Expenditures2,332,9058.54% 2 ,417,623 2,635,037 2,580,621 2,800,935 Indirectly Funded Amount2,130,9667.10% 2 ,252,935 2,427,635 2,424,356 2,596,470 The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks and Tree Service. 95 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Buildings PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The public works buildings budget FY 2016FY 2017 covers the entire public works complex. The FY 2016ApprovedApprovedPercent buildings and equipment are maintained by ActualBudgetBudgetChange in house maintenance personnel and the EXPENDITURES: custodial duties by a contract cleaner. Personnel Services $ 35,499 $ 38,687 $ 39,649 2.49% Other Services & Charges 104,708 75,622 84,460 11.69% MAJOR OBJECTIVES TO BE Reimbursed Expenditures (70,000) (70,000) (70,000)0.00% ACCOMPLISHED IN 2017: $ 70,207 $ 44,309 $ 54,109 NET TAX AND GENERAL 1. Maintain PW building to assure a safe 22.12% REVENUE SUPPORTED $ 70,207 $ 44,309 $ 54,109 and comfortable environment for all City PERSONNEL: employees at the lowest cost to the Number of FTE positions0.40.40.4 taxpayer. PROGRAM: Public Works – Equipment Services PROGRAM SUMMARY The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue aggressive maintenance and repair of all city equipment. 2. Purchase riding lawn mower, grass seed applicator (overseeder), and a ¾ ton truck with plow as provided in the City’s Equipment Replacement Plan. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service$ 118 $ 150 $ 150 0.00% EXPENDITURES: Personnel Services$ 215,831 $ 221,887 $ 227,443 2.50% Other Services & Charges 38,170 25,030 30,705 22.67% Reimbursed Expenditures (112,224) (143,000) (143,000)0.00% Capital Expenditures - 4,200 10,500 0.00% $ 141,777 $ 108,117 $ 125,648 16.21% NET TAX AND GENERAL REVENUE SUPPORTED$ 141,659 $ 107,967 $ 125,498 16.24% PERSONNEL: Number of FTE positions2.352.352.35 96 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Administration PROGRAM SUMMARY The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks/Forestry & Streets/Traffic; Water and Sewer Utilities and Solid Waste Management. FY 2016FY 2017 MAJOR OBJECTIVES TO BE FY 2016ApprovedApprovedPercent ACCOMPLISHED IN 2017: ActualBudgetBudgetChange 1. Southwest Transitway (LRT) planning: EXPENDITURES: protect city interests during construction Personnel Services $171,984 $185,836 $ 193,311 4.02% 2. Continue to analyze and respond to Other Services & Charges 26,006 19,309 16,854 -12.71% opportunities to save energy and be more Reimbursed Expenditures (148,000) (148,000) (148,000)0.00% $ 49,990 $ 57,145 $ 62,165 environmentally conscious while improving NET TAX AND GENERAL service quality and efficiency. REVENUE SUPPORTED $ 49,990 $ 57,145 $ 62,165 8.78% 3. Complete aggressive 2017 program of street, utility, municipal building and park PERSONNEL: system improvements. Number of FTE positions1.351.351.35 PROGRAM: Public Works – Engineering PROGRAM SUMMARY The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as-builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to consultants involved with construction projects. FY 2016FY 2017 MAJOR OBJECTIVES TO BE FY 2016ApprovedApprovedPercent ACCOMPLISHED IN 2017: ActualBudgetBudgetChange REVENUES: 1. Continue to develop and verify utility base Licenses $ 22,330 $ 8,000 $ 25,700 221.25% maps in the GIS system. Charges for Service 110 100 100 0.00% 2. Begin development of an ADA Transition $ 22,440 $ 8,100 $ 25,800 218.52% Plan. EXPENDITURES: 3. Complete Blake Road final design in Personnel Services $129,316 $172,577 $ 177,282 2.73% cooperation with various stakeholders and Other Services & Charges $139,111 $ 33,870 $ 35,996 adjacent projects. Reimbursed Expenditures (65,000) (65,000) (65,000)0.00% 4. Oversee implementation of the City’s $203,427 $141,447 $ 148,278 4.83% Capital Improvement Plan. NET TAX AND GENERAL -8.15% REVENUE SUPPORTED $180,987 $133,347 $ 122,478 PERSONNEL: Number of FTE positions1.61.61.6 97 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Streets and Alleys PROGRAM SUMMARY The Streets Division of the Public Works Department provides maintenance of 55 miles of streets, 30 miles of alleys and 10 parking lots (including parking ramp) within the City for convenient day-to-day use. Also provides street lighting, traffic signs and signals, sidewalk repair, and special event support. Maintenance includes activities such as sweeping, patching, seal coating and curb repair. Major maintenance is scheduled on a 6 year, maintenance district rotation basis. Routine mill/patching/paving is accomplished throughout the City during the summer season. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Street maintenance utilizing pavement management support information that includes prep seal coat areas and contractual crack sealing. 2. Spring sweeping as weather permits, Mainstreet sweeping every three weeks, residential sweeping (spring, summer and once in the fall). 3. Continued maintenance of storm water drainage systems. 4. Inspect and repair all defective sidewalks in district 5. Preventative patching, repairs to bituminous roadways. 6. Maintain sign and signal change outs, inventory signs, upgrade traffic controls and signals as required. 7. Mainstreet maintenance including flags, refuse, decorations and banners, and streetlight painting. 8. Provide traffic control and logistical services for special events such as Raspberry Festival, Mainstreet Days, National Night Out, etc., to support the City goal of promoting and enhancing city events. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses $ 1,635 $ 1,415 $ 1,415 0.00% Intergovernmental Revenue 170,757 140,000 170,000 21.43% Charges for Service 4,887 500 1,000 100.00% $177,279 $141,915 $ 172,415 21.49% EXPENDITURES: Personnel Services $442,272 $384,656 $ 558,667 45.24% Other Services & Charges $573,272 $671,570 $ 668,180 -0.50% Reimbursed Expenditures (112,000) (112,000) (112,000)0.00% $903,544 $944,226 $1,114,847 18.07% NET TAX AND GENERAL REVENUE SUPPORTED $726,265 $802,311 $ 942,432 17.46% PERSONNEL: Number of FTE positions4.064.064.06 98 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Snow & Ice Removal PROGRAM SUMMARY The Snow & Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking lots (including parking ramp) and economic development properties within the city for convenient day-to-day use, and to provide safe travel and parking conditions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN FY 2016FY 2017 2017: FY 2016ApprovedApprovedPercent 1. Complete plowing/ice treatment operations of ActualBudgetBudgetChange all city streets, alleys, parking lots and parking REVENUES: ramp within 10 hours. Charges for service $ 100 $ - $ - #DIV/0! 2. Complete snow removal operations in EXPENDITURES: downtown areas/ramp/parking lots in efficient Personnel Services $ 56,729 $139,279 $ 142,747 2.49% manner to meet parking/traffic flow demands. Other Services & Charges 50,597 82,717 81,359 -1.64% 3. Increase snow/ice maintenance activities on Capital Outlay - - - 0.00% residential streets. $107,326 $221,996 $ 224,106 0.95% 4. Utilize snow emergency policy to maximize NET TAX AND GENERAL safety and snow removal efforts, while REVENUE SUPPORTED $107,226 $221,996 $ 224,106 0.95% minimizing resident conflicts. PERSONNEL: Number of FTE positions1.181.181.18 PROGRAM: Public Works – Park Maintenance & Improvements PROGRAM SUMMARY The Parks division of the Public Works Department provides for the maintenance of developed parks and grounds adjacent to public buildings and right-of-ways, including: seeding, fertilizing and mowing of grass, tree & plantings maintenance, maintenance of all athletic fields and general playgrounds and maintenance of Shady Oak Beach. Maintenance of Co. Rd 3 median flowers and irrigation is provided. Maintenance of picnic facilities and trails, trash and rubbish removal from parks is also included. Open skating and hockey areas are included. Open skating and hockey areas are provided from December through February for outdoor recreational purposes. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ACCOMPLISHED ActualBudgetBudgetChange REVENUES: IN 2017: Charges for service $ 2,533 $ 1,500 $ 1,500 0.00% 1. Continue grounds maintenance of all parks Miscellaneous 4,931 4,600 4,600 0.00% including Shady Oak Beach, plus City Hall, 4 $ 7,464 $ 6,100 $ 6,100 0.00% well houses, Public Works garage and all other EXPENDITURES: City owned right-of-way. Personnel Services $475,445 $490,876 $ 494,668 0.77% 2. Provide open skating and hockey at the Other Services & Charges 324,311 295,171 289,669 -1.86% Capital Outlay - 3,100 - -100.00% following parks: Valley, Harley Hopkins, $799,756 $789,147 $ 784,337 -0.61% Oakes, Central, Interlachen, open skating only at Hilltop and Burnes. NET TAX AND GENERAL -0.61% REVENUE SUPPORTED $792,292 $783,047 $ 778,237 PERSONNEL: Number of FTE positions5.245.245.24 99 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Forestry PROGRAM SUMMARY The Forestry Division of the Public Works Department provides for the maintenance of all trees. Through the utilization of arboricultural practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2017 3. Remove all diseased, dead, dying trees on public property. 4. Thin the public tree ash population by removing poorly sited, declining and poorly formed trees. 5. Manage an effective data base record keeping system that tracks forestry activities to better manage and maintain public trees. 6. Provide for prompt customer service on requests for trimming and tree consultation FY 2016FY 2017 FY 2016ApprovedApprovedPercent BudgetBudgetChange Actual REVENUES: Charges for service $ - $ - $ - 0.00% EXPENDITURES: Personnel Services122,895$ 159,887$ 163,706$ 2.39% Other Services & Charges151,045$ 114,347$ 123,736$ 8.21% $273,940 $274,234 $ 287,442 NET TAX AND GENERAL REVENUE SUPPORTED $273,940 $274,234 $ 287,442 4.82% PERSONNEL: Number of FTE positions1.911.911.91 100 CITY OF HOPKINS RECREATION BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Expenditures Salaries, Wages and Benefits Salaries and Wages56,320271,40051,09177,66979,1911.96% Fringe Benefits7,5327,1404,6837,6827,8081.64% Materials, Supplies and Services Operations158,543164,309176,921167,505172,6053.04% Supplies and Materials350650 -250250 Capital Outlay Improvements Other than Bldg - - - - - Transfer Out - - - - - Total Expenditures222,745443,499232,695253,106259,8542.67% Indirectly Funded Amount222,745443,499232,695253,106259,8542.67% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 101 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Playgrounds PROGRAM SUMMARY The popular summer playground program is provided to children at 11 locations throughout the cities of Hopkins and Minnetonka. Activities include outdoor games, arts and crafts, a tiny tots program, and a summer adventure club. The summer concludes with a carnival attended by children from all the playground sites. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. To develop, promote and provide quality recreational opportunities in anticipation of and in response to the needs and interests of the Hopkins-Minnetonka community. 2. To develop staff related goals designed to build self-esteem in children participating in the program 3. Add an additional program site at Valley Park to meet the needs of the neighborhood. FY 2016FY 2017 FY 2016ApprovedApprovedPercent BudgetBudgetChange Actual EXPENDITURES: Personnel Services29,458$ 22,110$ 22,755$ 2.92% NET TAX AND GENERAL 2.92% REVENUE SUPPORTED29,458$ 22,110$ 22,755$ PERSONNEL: Number of Part-time positions222222 PROGRAM: Recreation – Ice Rink Program PROGRAM SUMMARY Supervised outdoor ice rinks are provided at 13 locations throughout the cities of Hopkins and Minnetonka. Each site is staffed with rink attendants from mid-December thru mid-February dependant on weather conditions. Ice rinks are available for general skating, hockey and broomball. Approximately 30 staff are hired and trained to supervise the outdoor ice rink program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. To provide quality customer service and facilities to ice rink users. 2. To ensure that all locations are adequately staffed for each scheduled day of operation 3. To hire and train a staff that is dedicated to providing quality customer service 4. To provide additional opportunities for skating by extending rink hours at all sites. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: $ 1.73%31,618 Personnel Services$ 1 4,093$ 3 1,080 NET TAX AND GENERAL REVENUE SUPPORTED14,093$ 31,6181.73% $ $ 3 1,080 PERSONNEL: Number of Part-time positions303030 102 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Park Service PROGRAM SUMMARY The Recreation Department hires and trains attendants to supervise park services at Burnes, Oakes and Valley Parks. Attendants manage picnic reservations, maintain restroom facilities, provide recreational equipment and keep overall site clean for park users. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. To provide quality customer service and facilities to park users. 2. To ensure that facilities are open and prepared for each scheduled permitted use FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services$$ 1.20%27,162 $ 6 ,06926,840 NET TAX AND GENERAL REVENUE SUPPORTED$ 26,8406,069$$ 27,1621.20% PERSONNEL: Number of Part-time positions888 PROGRAM: Recreation – Joint Recreation PROGRAM SUMMARY Programs for all ages are provided through the Joint Recreation division. Youth classes are offered in over 15 areas of interest including tennis, golf, swimming, ball skills, and arts & crafts. Youth sports leagues are offered in basketball and soccer. Adult classes are offered in several areas of interest, and team sports are offered in soccer, softball, basketball, volleyball, hockey, broomball and football. In addition, the joint recreation division oversees the operation of Shady Oak Beach, attended by over 30,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Transition to internal scheduling and staffing of inclusion services for participants with special needs. 2. Continue to develop partnerships in order to expand youth programming opportunities. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Other Services & Charges174,821$ 165,300$ 169,500$2.54% NET TAX AND GENERAL REVENUE SUPPORTED174,821$$ 169,500165,300$ 2.54% PERSONNEL: Number of Part-time positions909090 103 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Overpass Skate Park PROGRAM SUMMARY The Overpass program provides skate boarders, bikers, and inline skate athletes, 10 years of age or older, with a safe, fun, and challenging place to gather and practice their sport. The Overpass creates a healthy recreational opportunity primarily for youth, and young adults. The Overpass is a seasonal operation, and one of only a few tier II aggressive skate parks in the state of Minnesota. This unique park attracts a regional population in addition to serving the residents of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: rd 1. To operate the park under a contractual operating agreement with 3 Lair Skate Parks. 2. To operate the park with favorable fees for resident and community partners. 3. To increase the number of Hopkins resident users and partner community (Minnetonka and St. Louis Park) resident users. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services$ 4,915$ 2.69%5,464 $ 5,321 Other Services & Charges$ 2,100$ 36.66%3,355 $ 2,455 $ 7,015 $ 7,776 $ 8,819 NET TAX AND GENERAL REVENUE SUPPORTED$ 7,015 $ 7,776 $ 8,819 13.41% PERSONNEL: Number of FTE positions0.050.050.05 104 CITY OF HOPKINS ACTIVITY CENTER BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Charges for Services$95,338$104,678$66,341$62,000$67,0008.06% Contributions8,92314,41716,1629,5009,500 Total Revenues104,261119,09582,50371,50076,5006.99% Expenditures Salaries, Wages and Benefits Salaries and Wages177,001190,807188,327190,611196,3293.00% Fringe Benefits65,21468,03770,51973,53074,5021.32% Materials, Supplies and Services Professional & Technical Services52,64558,01629,37630,70036,90020.20% Utilities and Maintenance30,26723,23830,90932,25039,00020.93% Operations10,83210,75511,74812,55013,4907.49% City Support Services13,35710,16513,56713,97713,797-1.29% Supplies and Materials13,48617,76820,20826,17023,510-10.16% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - -10,400 Other Equipment - - - - - Total Expenditures362,802378,786364,654379,788407,9287.41% Indirectly Funded Amount258,540259,691282,151308,288331,4287.51% The Activity Center Department is made up of two programs. They are Community Use and Maintenance. 105 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Activity Center – Programming PROGRAM SUMMARY The Activity Center Community Use program provides a facility for residents to use for active or passive activities. Staff coordinates all users of the Activity Center. The Hopkins Activity Center also implements and coordinates the Senior Adult Program, which is geared towards the over 50 Hopkins population. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ACCOMPLISHED IN ActualBudgetBudgetChange 2017:REVENUES: Rent $ 23,252 $ 26,000 $ 26,000 0.00% 1. Facility enhancements: Gymnasium Charges for Service 30,727 25,000 30,000 20.00% 2. Update our registration system so that all Miscellaneous 28,526 20,500 20,500 0.00% registration and payments can be made online $ 82,505 $ 71,500 $ 76,500 6.99% 3. Market the Hopkins Activity Center to the over 50 EXPENDITURES: Hopkins population, especially through electronic Personnel Services $228,799 $244,848 $251,058 2.54% Other Services & Charges 63,080 70,290 84,439 20.13% media. $291,879 $315,138 $335,497 6.46% 4. Work with the Hopkins festivals and special events committees to promote events for the over 50 NET TAX AND GENERAL population. REVENUE SUPPORTED $209,374 $243,638 $258,997 6.30% PERSONNEL: Number of FTE positions3.03.03.0 PROGRAM: Activity Center – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Activity Center maintenance budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this building. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Enhancement of the gymnasium. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services$ 19,29317,603 $ $ 1 9,7732.49% Other Services & Charges42,349$ 45,357 $ $ 5 2,65716.09% $ 59,952 $ 64,650 $ 72,430 NET TAX AND GENERAL REVENUE SUPPORTED $ 59,952 $ 64,650 $ 72,430 12.03% PERSONNEL: Number of FTE positions0.20.20.2 106 CITY OF HOPKINS PLANNING BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Permits and Licenses$ 1,450$ 1,280$ 1,160$ 1,000$ 1,000 Charges for Services3,2006,3502,4652,5002,500 Miscellaneous - - - -94,695 Total Revenues4,6507,6303,6253,50098,1952705.57% Expenditures Salaries, Wages and Benefits Salaries and Wages97,937103,418142,150105,665108,8353.00% Fringe Benefits34,90036,30123,13243,85344,3981.24% Materials, Supplies and Services Professional & Technical Services3725785,52310,25099,695872.63% Utilities and Maintenance586127125450250-44.44% Operations7,7178,6908,00610,73510,735 City Support Services7513,6009689199644.90% Supplies and Materials1,6031,5761,4252,0002,000 Total Expenditures143,865154,289181,331173,872266,87753.49% (20,000) Reimbursed Expenditures ( 20,000) ( 20,000) ( 20,000) ( 20,000) Net Total Expenditures123,865134,289161,331153,872246,87760.44% Indirectly Funded Amount119,215126,659157,706150,372148,682-1.12% The Planning and Economic Development Department is made up of three programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 107 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Planning & Community Development – Zoning Activities, Planning & Enforcement PROGRAM SUMMARY The Zoning Activities & Enforcement Program of the Planning & Economic Development Department provides administration and enforcement of locally approved Zoning Ordinance and Comprehensive Plan. Provides administration and inspection of signs and fences and prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to examine if properties should be re-zoned to Mixed-Use 2. Research and develop a policy to ensure that new developments have a bike and pedestrian-friendly design 3. Process sign & fence permit requests in a timely and expedient manner 4. Provide staff assistance to Planning Commission FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses & Permits$ 3,625 $ 3,000 $ 98,195 3173.17% EXPENDITURES: Personnel Services$ 165,283 $ 149,518 $ 153,233 2.48% Other Services & Charges 16,048 24,354 113,644 366.63% Reimbursed Expenditures (20,000)(20,000)(20,000)0.00% $ 161,331 $ 153,872 $ 246,877 NET TAX AND GENERAL REVENUE SUPPORTED $ 157,706 $ 150,872 $ 148,682 -1.45% PERSONNEL: Number of FTE positions1.351.351.35 108 CITY OF HOPKINS COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues 3.45% Miscellaneous$ -$ -$ -$ 8 7,000$ 9 0,000 Expenditures Salaries, Wages and Benefits Salaries and Wages3.00% 6 0,441 6 3,403 6 4,890 8 4,684 8 7,225 Fringe Benefits 23,54622,356 33,15932,722 1.34% 2 2,044 Materials, Supplies and Services Professional & Technical Services 3 ,232 1 ,786 1 ,336 8 00 7 50-6.25% Operations 9 93 1 39 3 4 2 ,515 2 ,515 City Support Services 1 ,242 1 ,417 3 05 3 04 3 215.59% Supplies and Materials 6 69 1 ,285 4 30 8 50 8 50 Total Expenditures121,875 124,820 2.42% 8 8,621 9 0,387 9 0,541 Indirectly Funded Amount-0.16% $ 8 8,621$ 9 0,387$ 9 0,541$ 3 4,875$ 3 4,820 The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. 109 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Development PROGRAM SUMMARY Promotion and development of housing programs and activities for City property owners and residents. Staff st Time Home Buyer Mortgage Program, Image Awards, Housing support of housing programs such as 1 Improvement Areas and Livable Communities Program. Assist in implementation of the Engaging Raspberry Renters project. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue promotion and support of various housing programs and initiatives. Investigate funding for SW LRT station area (and other key parcels) redevelopment, including Hennepin County Transit Orientated Development (TOD) program and Met Council Livable Communities Demonstration Account. 2. Continue to provide staff support to HAMA, SW LRT TIC, SCIP and other collaborative efforts. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Miscellaneous $ - $ 87,000 $ 90,000 3.45% EXPENDITURES: Personnel Services $ 88,437 $ 117,406 $ 120,384 2.54% Other Services & Charges 2,105 4,469 4,436 -0.74% $ 90,542 $ 121,875 $ 124,820 NET TAX AND GENERAL -0.16% REVENUE SUPPORTED$ 90,542 $ 34,875 $ 34,820 PERSONNEL: Number of FTE positions0.850.850.85 110 CITY OF HOPKINS STATE CHEMICAL ASSESSMENT BUDGET Revenues and Expenditures Projected Special Revenue Fund 204 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Intergovernmental $ 59,882 $ 72,090$ 90,780$ 60,000$ 60,000 Miscellaneous - 4,901 - - - -- Refunds & Reimbursements 4,067 740 - - - -- Total Revenues 63,949 77,731 90,780 60,000 60,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 23,547 36,412 32,175 37,171 32,327-13.03% Materials, Supplies and Services Professional & Technical Services 1,980 2,717 2,000 2,000 2,000 Utilities and Maintenance-- 4,892 4,098 6,163 - 5,141 Operations 16,214 15,278 28,996 3,000 5,52084.00% Leases - 8,726 8,678 10,500 6,560-37.52% City Support Services 2,800 3,340 2,718 2,718 2,112-22.30% Supplies and Materials 25,878 26,998 16,360 4,611 6,34037.50% Capital Outlay Computers - - - - - Other Equipment - - - - - -- Total Expenditures0.00% 75,312 97,569 97,088 60,000 60,000 Excess (deficiency) of revenue over expenditures (11,363) (19,838) (6,308) ( 0) - -100.00% The State Chemical Assessment is supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. 111 CITY OF HOPKINS FUND 203 – CHEMICAL ASSESSMENT TEAM FUND PROGRAM: State Chemical Assessment Team PROGRAM SUMMARY The State Chemical Assessment Team program provides emergency response for assessment of chemical hazards for the State of Minnesota and maintenance of state owned equipment for emergency response and training of personnel. Responding as requested by the State Duty Officer to the counties of Hennepin, Scott, Carver, McLeod and Renville. The State of Minnesota will reimburse the City for up to $60,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. To continue to train to members on all aspects of chemical response. 2. To restructure and redefine chemical assessment team to meet the needs of the state, city and team members needs. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental Revenue $ 90,780 $ 60,000 $ 60,000 0.00% EXPENDITURES: Personnel Services $ 32,175 $ 37,171 $ 32,327 -13.03% Other Services & Charges 64,913 22,829 27,673 21.22% $ 97,088 $ 60,000 $ 60,000 NET TAX AND GENERAL -- REVENUE SUPPORTED $ 6,308 $ - $ - PERSONNEL: Number of FTE positions000 112 CITY OF HOPKINS ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Special Revenue Fund 205 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Property Taxes$296,813 $310,900 -35.46% $ 535,083$ 439,918$ 481,725 Intergovernmental 49,995 171,875 50,000 - - Interest earnings-14.41% 44,883 40,422 35,052 19,000 30,000 Miscellaneous 20,747 46,040 106,676 40,300 40,300 Total Revenues 650,707 698,255 673,454 356,113 381,200 Expenditures Salaries, Wages and Benefits Salaries and Wages 125,677109,806 14.45% 135,817 147,151 149,030 Fringe Benefits18.23% 42,980 45,825 40,926 36,538 43,199 Materials, Supplies and Services 36.26% Professional & Technical Services 26,765 80,769 100,444 35,850 48,850 Utilities and Maintenance 772 735 934 1,170 1,170 Operations 108,431 24,811 324,733 7,300 7,300 City Support Services-7.01% 25,806 22,819 24,037 24,036 22,351 Supplies and Materials 955 1,610 1,732 1,900 1,900 Grant Expenditures - 138,629 102,886 - - Operating Transfer In (Out) 61,000 - - - - 402,524 462,349 744,721 216,600 250,447 Capital Outla y Land Acquisition - - - - - Other Improvements - - - - - Total Expenditures 250,447216,600 15.63% 402,524 462,349 744,721 Reimbursed Expenditures (40,000) (40,000) (40,000) (40,000) (40,000) Net Total Expenditures 210,447176,600 19.17% 362,524 422,349 704,721 Excess (deficiency) of Revenues ove r Expenditures 170,753179,513 -4.88% 288,183 275,907 (31,267) The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 113 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Project Development and Coordination PROGRAM SUMMARY FY 2016FY 2017 Undertake development activities not FY 2016ApprovedApprovedPercent directly funded by specific project ActualBudgetBudgetChange budgets. Meet with developers, property REVENUES: owners and business tenants to review Property Taxes $ 480,688 $ 296,813 $ 310,200 4.51% possible redevelopment/development Intergovernmental Revenue - activities. Recruit desirable businesses Interest 11,426 19,000 15,000 -21.05% to locate in Hopkins. Explore developer Miscellaneous 15,152 40,000 40,700 1.75% incentives aimed at promoting $ 507,266 $ 355,813 $ 365,900 2.83% sustainability and active living. EXPENDITURES: Personnel Services $ 71,815 $ 46,591 $ 69,123 48.36% MAJOR OBJECTIVES TO BE Other Services & Charges 348,966 33,065 38,717 ACCOMPLISHED IN 2017: Transfer Out - - - #DIV/0! 1. Monitor income/expenditure of $ 420,781 $ 79,656 $ 107,840 35.38% Economic Development fund. 2. Prepare program budget. NET TAX AND GENERAL 3. Facilitate redevelopment projects as REVENUE SUPPORTED $ (86,485) $(276,157) $(258,060)-6.55% directed by the City Council. PERSONNEL: Number of FTE positions0.650.650.65 PROGRAM: Tax Increment Financing Program PROGRAM SUMMARY Undertake miscellaneous development activities funded through tax increment districts. Administer all districts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Personnel Services $ 59,035 $ 49,717 $ 49,717 0.00% Other Services & Charges 9,951 10,951 9,804 -10.47% Reimbursed Expenditures (40,000) (40,000) (40,000)0.00% $ 28,986 $ 20,668 $ 19,521 NET TAX AND GENERAL -5.55% REVENUE SUPPORTED $ 28,986 $ 20,668 $ 19,521 PERSONNEL: Number of FTE positions0.50.50.5 114 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Community Development Activity PROGRAM SUMMARY Promote the City of Hopkins by building on assets, including the small town feel, walkability and Hopkins as a destination. Explore ways to enhance the sense of place through public art and directional signage. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Work towards the Council-approved goals and objectives. 2. Continue liaison role for City between both HBCA and Twin West Chamber. 3. Work with Marketing Task Force to implement year four of the Think Hopkins marketing plan. 4. Facilitate year four of Hopkins Artstreet. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Interest $ - $ - $ - #DIV/0! Intergovernmental revenue $ 139,000 Miscellaneous 277 300 300 0.00% $ 139,277 $ 300 $ 300 0.00% EXPENDITURES: Personnel Services $ 50,224 $ 50,036 $ 50,036 0.00% Other Services & Charges 134,342 26,240 33,050 25.95% $ 184,566 $ 76,276 $ 83,086 8.93% NET TAX AND GENERAL 8.96% REVENUE SUPPORTED $ 45,289 $ 75,976 $ 82,786 PERSONNEL: Number of FTE positions0.250.450.45 115 CITY OF HOPKINS TIF DISTRICT 1-2 BUDGET Revenues and Expenditures Special Revenue Fund 212 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Tax Increment$ 58,173$ 58,173$ 5 8,172$ 5 8,000$ 3 0,000-48.28% Interest 1,124 1,757 1 ,036 5 00 1 ,000100.00% Transfers In - - - - - Expenditures Materials, Supplies and Services Professional & Technical Services 599 596 1 ,462 1 ,000 1 ,50050.00% Operations 13,155 12,538 7 ,178 1 2,236 1 1,742-4.04% Total Expenditures0.05% 13,754 13,135 8 ,640 1 3,236 1 3,242 Transfers out for debt - - - - - Total Expenditures0.05% 13,754 13,135 8 ,640 1 3,236 1 3,242 Excess (deficiency) of Revenues over Expenditures 45,543 46,795 5 0,569 4 5,264 1 7,758-60.77% The Tax Increment District 1-2 Fund is the redevelopment of former Suburban Chevrolet property. The tax increment district is located in the Central Business District. The fund records the use of tax increment receipts. 116 CITY OF HOPKINS FUND 211 – TAX INCREMENT DISTRICT 2-1 FUND PROGRAM: Redevelopment within Central Business District PROGRAM SUMMARY Redevelopment activity of property in the Central Business District (CBD), north and south of Mainstreet between thth and 12 Avenues. 11 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2016FY 2017 FY 2016ApprovedApprovedPercent BudgetBudgetChange Actual REVENUES: Tax Increments $ 58,173 $ 58,000 $ 30,000 -48.28% Interest 1,036 500 1,000 100.00% $ 59,209 $ 58,500 $ 31,000 -47.01% EXPENDITURES: Other Services & Charges $ 8,640 $ 13,236 $ 13,242 0.05% NET TAX AND GENERAL -60.77% REVENUE SUPPORTED $ (50,569) $ (45,264) $ (17,758) PERSONNEL: Number of FTE positions000 117 CITY OF HOPKINS PARKING BUDGET Revenues and Expenditures Special Revenue Fund 215 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Court Fines$17,474 $15,767 $21,876 $22,000 $22,000 109,754119,577115,000 4.35%120,000 Leased Parking 8 7,291 Interest Earned2,1692,4761,1251,000 150.00%2,500 Transfer In- 443,000- - - otaevenues,,,,,. TlR106934137820575755138000144500471% Expenditures Salaries, Wages and Benefits Salaries and Wages38,737 40,557 39,947 42,746 44,039 3.02% Fringe Benefits6,168 7,039 17,404 18,683 18,880 1.05% Materials, Supplies and Services Professional & Technical Services15,8933,9486,1506,150 7,890 Utilities and Maintenance21,21331,3848,00214,52514,025-3.44% Operations325325925750 750 City Support Services20,79617,49923,31521,19621,5341.59% Supplies and Materials3,5236455,5505,550 298 Capital Outlay Other Improvements 95,875-438,404250,000 -100.00%- Total Expenditures106,655201,214532,242359,600 110,928 -69.15% Excess (deficiency) of Revenues over Expenditures (63,394)27943,513 33,572(221,600) -115.15% The Parking Fund records the receipt of parking permits and parking fines. The revenues are used to offset the maintenance cost of the parking lots and parking ramp and to fund the parking enforcement officer. 118 CITY OF HOPKINS FUND 214 – PARKING FUND PROGRAM: Parking Ramp PROGRAM SUMMARY Proper handling of all matters related to the operation and administration of the leased parking system for the ramp. Implement recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. 3. Complete Ramp signage replacement project FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Other Services & Charges 21,559 29,243 28,743 -1.71% Capital Expenditures 332,897 250,000 - -- $ 354,456 $ 279,243 $ 28,743 NET TAX AND GENERAL -89.71% REVENUE SUPPORTED$ 354,456 $ 279,243 $ 28,743 PERSONNEL: Number of FTE positions000 119 CITY OF HOPKINS COMMUNICATIONS BUDGET Revenues and Expenditures Special Revenue Fund 218 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues $273,105 $255,000 $263,000 3.14% Franchise Fees$ 261,104$266,366 Charges for Services- - 1 2,494 - - Proceeds from Sale of Assets- - - - - Interest Earned4,845 6,207 5,126 2,000 6,200210.00% Total Revenu 272,573265,949 e 290,7252 57,0002 69,2004.75% Exenditures p Salaries, Waes and Benefits g 19.70% Salaries and Wages 3 1,061 59,003 6 2,580 60,985 73,000 Fringe Benefits91.54% 8,070 13,112 1 2,455 14,542 27,854 Materials, Sulies and Services pp Professional & Technical Services 31,722 7,984 3 4,215 9,250 34,250270.27% Utilities and Maintenance 21,6585111,650 2 7,151 1,650 Operations21,01924,800 19,728 2 6,870 24,800 City Support Services13.20% 1 3,136 10,987 1 2,476 12,476 14,123 Supplies and Materials480 3 13 1,455 6 50 6 50 Caital Outla py Equipment 8,558- 2 8,223 12,500 26,500112.00% Transfer Out86,920 8 6,920 86,920 8 6,920 86,920 Total Exenditures192,919228,264 289,747 29.48% p 292,346223,773 Excess (deficiency) of Revenues over Expenditures -161.84%(20,547) 73,029 44,309 (1,621) 33,227 The Communication Fund (formerly known as the Cable fund) records the City's share of a five city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. 120 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Communication PROGRAM SUMMARY Provide two-way communication between the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: Communications: 1. Promote City events, large and small. 2. Work on engaging and reaching all community members. Newsletters: 3. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. 4. Increase newsletter distribution to rental properties. Web and Messaging: 5. City Goal 1, Explore improved service delivery through e-commerce: 6. Increase interactivity on web site through one or more of the following: Update website to make more accessible for all. Ability to make payments via the web. Customer Response system. Ability to fill out forms on the website. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Franchise Fees $ 285,599 $ 255,000 $ 263,000 3.14% Interest 5,126 2,000 6,200 210.00% $ 290,725 $ 257,000 $ 269,200 4.75% EXPENDITURES: Personnel Services $ 75,036 $ 75,527 $ 100,854 33.53% Other Services & Charges 102,167 48,826 75,473 54.58% Capital Expenditures 28,223 12,500 26,500 112.00% Transfer Out 86,920 86,920 86,920 0.00% $ 292,346 $ 223,773 $ 289,747 29.48% NET TAX AND GENERAL -161.84% REVENUE SUPPORTED $ 1,621 $ (33,227) $ 20,547 PERSONNEL: Number of FTE positions0.250.251.25 121 CITY OF HOPKINS DEPOT BUDGET Revenues and Exenditures p Special Revenue Fund 220 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Intergovernmental$22,500 $15,000 $15,000 $15,000 $15,000 Leases and Rentals71,07974,65475,57668,00068,000 232,5000.43% Concessions & Merchandise Sales 246,114 260,413 250,278 231,500 Donations & Contributions1,8097023,5532,000 25.00%2,500 Private Foundation Grants- 2,500- - - Interest10136 (14) - - Miscellaneous15,15015,30215,65315,10015,000 Transfer In10,00010,00015,00015,00015,000 Total Revenues366,662 375,196376,057 349,100 348,000-0.32% Expenditures Salaries, Wages and Benefits Salaries and Wages180,893157,2762.32% 164,353 170,045 153,709 Fringe Benefits52,74353,83453,88450,2191.13% 50,785 Materials, Supplies and Services Professional & Technical Services12,65510,7309,0009,3003.33% 10,759 Utilities and Maintenance11,99713,56815,82312,05010,800-10.37% Operations4,16914,87711,64915,95036.92% 7,747 City Support Services4,3865,3205,2895,365 -23.11%4,125 Supplies and Materials105,52695,99998,04696,15094,800-1.40% Capital Outla y Improvements2,386 - - - - Total Expenditures374,756343,0361.45% 351,552 368,723 338,142 Excess (deficiency) of Revenues over expenditures(8,094)24,5056,47310,958 4,964-54.70% The Depot Coffee House Fund accounts for the operations of the Youth Center, a chemical free environment for area teens to socialize and the operations of the Coffee House which provides a service to the Youth and those on the regional trail system. 122 CITY OF HOPKINS FUND 219 – DEPOT FUND PROGRAM: Depot Youth Project PROGRAM SUMMARY: Depot Mission To provide a place of community and learning in which student involvement and youth development are encouraged in a chemically-free environment Depot Youth Project staffing and programs are funded primarily through admission fees, rentals, gifts and grants. The Depot programs are intended to offer area youth creativity and leadership opportunities, strengthen youth involvement in community activities, and nurture their growth and development as citizens through interaction with peers, the public, and community partners. The Depot Board and The Partners Advisory Team, consisting of students, community members, community business partners, City, Hopkins School District, Depot Youth Foundation and Three Rivers Park District representatives, guide and support site and programming decisions.. The facility/grounds serve as a Trailhead for Three Rivers Park District and the coffee house which operates 7 days a week is an amenity enjoyed by local residents as well as trail riders/walkers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Sustain welcoming and FY 2016FY 2017 chemical free venue for community youth and FY 2016ApprovedApprovedPercent other gatherings. ActualBudgetBudgetChange 2. Continue staffing 2 – 3 REVENUES: night a week year -round Intergovernmental $ 80,000 $ 80,000 $ 80,000 0.00% youth events programming Charges for Service 13,111 8,000 8,000 0.00% at the Depot. Foundation/Corporate Grants - 2,500 - -100.00% 3. Support additional youth- Miscellaneous 18,732 18,500 15,000 -18.92% initiated projects. Tranfer In 15,000 15,000 15,000 0.00% 4. Provide learning lab for $126,843 $ 124,000 $ 118,000 -4.84% Business/Marketing EXPENDITURES: classes at Hopkins High School. Personnel Services $ 79,733 $ 87,373 $ 88,878 1.72% 5. Promote partnerships with Other Services & Charges 33,960 32,289 30,625 -5.15% the Depot in the Capital Expenditures - - - 0.00% community, with area $113,693 $ 119,662 $ 119,503 -0.13% students, and youth allies. 6. Create new youth learning NET TAX AND GENERAL opportunities with Coffee -134.65% REVENUE SUPPORTED $ (13,150) $ (4,338) $ 1,503 Operations staff. 7. Provide workplace training and employment PERSONNEL: opportunities for youth. Number of FTE positions1.51.01.0 8. Continue capital upgrades with furnishings 123 CITY OF HOPKINS FUND 219 – DEPOT FUND PROGRAM: Depot Coffee Ops PROGRAM SUMMARY: The coffee shop is a natural adjunct to the youth programming at the Depot and provides actual sustenance for youth patrons and the wider community as well as employment and training opportunities for youth. . MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to provide organic fair-trade coffee drinks, locally sourced snacks and hand-crafted baked goods, sandwiches, salads, and soups for youth and adult patrons. 2. Provide barista/customer service training and supervision for youth volunteers and employees. 3. Provide learning lab for Marketing/Business students at Hopkins High School. 4. Offer food choices as well as repair and small merchandise items for biking/trail patrons of the Depot. 5. Develop catering menu and business for youth to operate. 6. Develop food service partnership with Hopkins Activity Center. 7. Market the Depot space for rentals. FY 2016FY 2017 ApprovedApprovedPercent FY 2016 ActualBudgetBudgetChange REVENUES: Charges for Service$ 247,577 $ 225,100 $ 227,000 0.84% EXPENDITURES: Personnel Services$ 134,319 $ 116,555 $ 119,183 2.25% Other Services & Charges 110,613 101,925 104,350 2.38% $ 244,932 $ 218,480 $ 223,533 2.31% NET TAX AND GENERAL REVENUE SUPPORTED $ (2,645) $ (6,620) $ (3,467)-47.63% PERSONNEL: Number of FTE positions111 124 CITY OF HOPKINS TIF DISTRICT 2-6 BUDGET Revenues and Expenditures Special Revenue Fund 228 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Tax Increment$ 12,587$ 1 2,587$ 1 4,504$ 1 2,000$ 1 2,000 Interest 8 2 0 2 1 1 0 --100.00% Miscellaneous 6,437 7 ,024 4 ,520 7 ,024 7 ,024 Transfers In 25,302 2 1,870 2 4,108 2 3,318 2 1,125 Total Revenues-5.20% 44,334 4 1,501 4 3,153 4 2,352 4 0,149 Expenditures Materials, Supplies and Services Professional & Technical Services 523 5 28 1 ,384 5 50 1 ,350145.45% Operations 1,500 1 ,375 1 ,500 1 ,500 1 ,500 Interest Expense 8,302 6 ,910 5 ,518 5 ,518 4 ,126-25.23% Total Expenditures 10,325 8 ,813 8 ,402 7 ,568 6 ,976-7.82% -4.63% Excess of Revenues over Expenditures 34,009 3 2,688 3 4,751 3 4,784 3 3,173 The Tax Increment 2-6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 125 CITY OF HOPKINS FUND 226 – TAX INCREMENT 2-6 FUND PROGRAM: SonomaHandicap Housing Project PROGRAM SUMMARY th Coordinate redevelopment of northwest corner of 5 Avenue and Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 14,504 $ 12,000 $ 12,000 0.00% Miscellaneous $ 4,520 $ 7,024 $ 7,024 Interest 21 10 - -100.00% Tranfer In 24,108 23,318 21,125 -9.40% $ 43,153 $ 42,352 $ 40,149 -5.20% EXPENDITURES: Other Services & Charges $ 8,402 $ 7,568 $ 6,976 -7.82% NET TAX AND GENERAL -4.63% REVENUE SUPPORTED $ (34,751) $ (34,784) $ (33,173) PERSONNEL: Number of FTE positions000 126 CITY OF HOPKINS TIF DISTRICT 2-11 BUDGET Revenues and Expenditures Special Revenue Fund 231 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Tax Increment$2,403,449$2,597,340$2,751,506$2,400,000$2,400,000 Interest12,34726,98115,0008,000-46.67% 42,139 Miscellaneous - - - - - Total Revenues2,415,7962,639,4792,778,4872,415,0002,408,000-0.29% Expenditures Materials, Supplies and Services Professional & Technical Services13,98317,55715,39612,50012,8002.40% Operations46,38442,19746,44046,44047,5402.37% Debt Service1,593,067450,352389,0981,335,000400,000 Capital Outlay TIF projects - - - - - Transfers out 237,956188,000818,108211,3181,330,125529.44% Total Expenditures1,891,390698,1071,269,0421,605,2581,790,46511.54% Excess (deficiency) of Revenues over Expenditures 524,406 1,941,372 1,509,446 809,742 6 17,535-23.74% The Tax Increment District 2-11 fund is the SuperValu and Super Value North Annex redevelopment. This fund records the use of tax increments and bond proceeds. 127 CITY OF HOPKINS FUND 231 – TAX INCREMENT 2-11 FUND PROGRAM: Redevelopment Area – North Annex Property PROGRAM SUMMARY Coordinate and review development and redevelopment activity. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go (PAYG) financing to developer as scheduled. FY 2016FY 2017 FY 2016ApprovedApprovedPercent BudgetBudgetChange Actual REVENUES: Tax Increments $ 2,751,506 $ 2,400,000 $ 2,400,000 0.00% Interest 26,981 15,000 8,000 -46.67% $ 2,778,487 $ 2,415,000 $ 2,408,000 -0.29% EXPENDITURES: Other Services & Charges $ 61,836 $ 58,940 $ 60,040 1.87% Debt Service - PAYG TIF $ 389,098 $ 211,318 $ 400,500 89.52% Transfer Out 818,108 1,335,000 1,330,125 -0.37% $ 1,269,042 $ 1,605,258 $ 1,790,665 11.55% NET TAX AND GENERAL -23.76% REVENUE SUPPORTED $(1,509,445) $ (809,742) $ (617,335) PERSONNEL: Number of FTE positions000 Super Valu Development Excelsior Crossings Development 128 CITY OF HOPKINS 5TH AVENUE FLATS Revenues and Expenditures Special Revenue Fund 232 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Tax Increments$ -$ -$ -$ -$ - Interest (2,126) (2,444) - - - Development Fees - - - - - Other Miscellaneous - - - - - Transfer In - - - - - Total Revenues (2,126) (2,444) - - - Expenditures Materials, Supplies and Services Professional & Technical Services 2,000 1,833 2,000 2,000 2,000 Miscellaneous Other Charges - - - - - Capital Outlay TIF Projects - - - - - Total Expenditures 2,000 1,833 2,000 2,000 2,000 Excess of Revenues over Expenditures $ (4,126)$ (4,277)$ (2,000)$ (2,000)$ (2,000) 5th Avenue Flats is a redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. 129 CITY OF HOPKINS TH FUND 232 – 5 AVENUE FLATS th PROGRAM: Redevelopment Area –6 & Mainstreet PROGRAM SUMMARY Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Work with developer on project implementation. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments$ - $ - $ - 0.00% Miscellaneous - - - 0.00% $ - $ - $ - 0.00% EXPENDITURES: Other Services & Charges$ 2,000 $ 2,000 $ 2,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED$ 2,000 $ 2,000 $ 2,000 0.00% PERSONNEL: Number of FTE positions000 Proposed Fifth Avenue Flats project 130 CITY OF HOPKINS TH FUND 232 – 5 AVENUE FLATS th PROGRAM: Redevelopment Area –6 & Mainstreet PROGRAM SUMMARY Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Work with developer on project implementation. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments$ - $ - $ - 0.00% Miscellaneous - - - 0.00% $ - $ - $ - 0.00% EXPENDITURES: Other Services & Charges$ 2,000 $ 2,000 $ 2,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED$ 2,000 $ 2,000 $ 2,000 0.00% PERSONNEL: Number of FTE positions000 Proposed Fifth Avenue Flats project 131 CITY OF HOPKINS TIF 1-4 MARKETPLACE II Revenues and Expenditures Special Revenue Fund 234 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Tax Increments$103,167 $119,176 $133,125 $122,000 $125,000 2.46% Interest22 17 8 100 - -100.00% Transfers In- - - - - Total Revenues103,189133,133122,100 125,0002.38% 119,193 Expenditures Materials, Supplies and Services Professional & Technical Services3,8444,8205,9505,950 8,055 Miscellaneous 11,023- - - - PAYG Note92,96362,516115,000 115,000 55,068 Interest Expense- - - - - Total Expenditures96,80767,336120,950 120,950 74,146 Excess of Revenues over Expenditures$6,383 $45,048 $65,797 $1,150 $4,050252.17% The Tax Increment District 1-4 Fund is the redevelopment of several blocks of the downtown business district into a housing and retail development. This fund records the tax increment revenues. 132 CITY OF HOPKINS FUND 233 – TAX INCREMENT 1-4 FUND PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY thth and 8 Avenues into mixed-use apartment, townhome & retail Redevelopment of property between 6 development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Work with developer on implementation of project. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 133,125 $ 122,000 $ 125,000 2.46% Miscellaneous 8 100 - -100.00% $ 133,133 $ 122,100 $ 125,000 2.38% EXPENDITURES: Other Services & Charges $ 67,336 $ 120,950 $ 120,950 0.00% NET TAX AND GENERAL 252.17% REVENUE SUPPORTED $ (65,797) $ (1,150) $ (4,050) PERSONNEL: Number of FTE positions000 133 CITY OF HOPKINS ARTS CENTER Revenues and Expenditures Special Revenue Fund 251 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues 78.57% Current Services$ -$ 83,587$ 1 38,018$ 140,000$ 250,000 Grants-8.65% 44,220 73,353 3 5,210 38,967 35,597 Current Services-0.75% 361,508 358,491 3 72,249 385,721 382,817 Charges for Service - - - - - Other Revenues33.14% 125,365 175,043 4 96,258 135,500 180,400 Transfers In 147,920 86,920 8 6,920 8 6,920 86,920 Total Revenues 787,1081,128,656 18.88% 679,013 777,393 935,734 Operating Expenses Salaries, Wages and Benefits Salaries and Wages-6.83% 287,623 300,823 3 18,588 328,947 306,495 Fringe Benefits13.01% 88,609 95,595 8 6,301 101,110 114,265 Materials, Supplies and Services Professional & Technical Services0.09% 156,376 150,676 1 74,717 176,400 176,556 Utilities and Maintenance8.57% 79,500 79,923 8 6,610 8 8,700 96,300 Operations-1.87% 109,772 71,109 9 0,018 9 9,870 98,000 City Support Services-0.14% 10,064 16,175 1 0,518 1 0,904 10,889 Supplies and Materials-0.54% 23,531 35,940 2 7,008 3 3,983 33,800 Capital Outlay Improvements - 10,169 1 30,166 106,800 398,200 Total Expenses 30.40%1,234,505 755,475 760,408 9 23,926 946,714 Excess (deficiency) of Revenues over Expenditures87.19% ( 76,462) 16,985 204,729(159,606) (298,771) The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 134 CITY OF HOPKINS FUND 250 – ARTS CENTER FUND PROGRAM: Facility Operations and Programming & Promotions Building Community through the Arts by fostering creative expression and providing artistic and educational opportunities for people of all ages. PROGRAM SUMMARY The Hopkins Center for the Arts is a premiere cultural and artistic destination drawing over 215,000 visitors annually. Its amenities include a 715 seat theater, black-box theater, art gallery, dance studio, classroom, meeting and multipurpose spaces. The Center provides artistic and educational opportunities for people of all ages and abilities, including a concert series of local and national artists, exhibits that are free and open to the public, and ArtStreet, the public art sculpture program. It is also home to tenant partners – Stages Theatre Company and the Hopkins School District. Hopkins Center for the Arts earns revenue through tenant leases, rentals, admission fees, gifts and grants. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to build relationships in our community and collaborate with tenants, partners, businesses and residents to meet City Strategic Plan goals and engage a broad segment of the community. 2. Operate within a balanced budget that maximizes revenues and controls expenses, with the goal of financial sustainability. 3. Increase the fundraising capacity of the Arts Center to address operating and capital needs. 4. Build participation in Center arts activities, including concerts and exhibitions, and explore creative opportunities beyond the walls of the Center. 5. Strengthen the identity and enhance the reputation of the Hopkins Center for the Arts. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Taxes $ 138,018 $ 140,000 $ 250,000 78.57% Intergovernmental 34,968 35,967 35,597 -1.03% Charges for Service 521,466 489,921 529,017 7.98% Foundation/Corporate Grants 242 3,000 - -100.00% Miscellaneous 347,965 31,300 34,200 9.27% Tranfer In 86,920 86,920 86,920 0.00% $ 1,129,579 $ 787,108 $ 935,734 18.88% EXPENDITURES: Personnel Services $ 404,889 $ 430,057 $ 420,760 -2.16% Other Services & Charges 388,871 409,857 415,545 1.39% Capital Expenditures 130,166 106,800 398,200 $ 923,926 $ 946,714 $ 1,234,505 30.40% NET TAX AND GENERAL 87.19% REVENUE SUPPORTED $ (205,653) $ 159,606 $ 298,771 PERSONNEL: Number of FTE positions3.83.83.8 135 CITY OF HOPKINS EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses Internal Service Fund 603 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Current Services$343,792$345,477$408,459$408,459$445,2209.00% Intergovernmental Revenue -237,120 - - - Interest Earnings9,4416,0235,4265,3005,300 Miscellaneous27,23527,535121,54330,00030,000 Transfers In - -1,896,571 - - Total Revenue380,468616,1552,432,000443,759480,5208.28% s Operating Expenses Materials, Supplies and Services14,87017,00819,55120,00020,000 Professional & Technical Services2,0002,0002,0002,5002,500 Utilities and Maintenance11,17845,52548,83951,5501,200-97.67% City Support Services9,4156,7447,3507,3507,350 Total Operating Expenses37,46371,27677,74081,40031,050-61.86% Non-operating expenses476,963484,826476,729487,629474,383-2.72% Total Expenses514,426556,103554,469569,029505,433-11.18% (125,270)1,877,531 -80.11% Net Income (Loss) ( 133,957) 60,053 ( 24,913) Capital478,0341,134,325746,3161,128,1751,859,200 The Equipment Replacement fund is an internal service fund. It accounts for the acquisition of machinery and equipment. User charges are billed to the various departments. 136 CITY OF HOPKINS FUND 602 – EQUIPMENT REPLACEMENT FUND PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty-year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Update 5-year Equipment Replacement Plan. 2. Analyze future needs. 3. Review revenue structure to accommodate equipment needs as identified in the long-range 20-year plan. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental Revenue$0 $0 $0 0.00% Charges for Service408,459 408,459 445,220 9.00% Interest5,426 5,300 5,300 0.00% Miscellaneous121,543 30,000 30,000 0.00% Transfer In1,896,571 0 0 0.00% 2,432,000 443,759 480,520 8.28% EXPENDITURES: Other Services & Charges77,740 81,400 31,050 -61.86% Depreciation470,000 470,000 470,000 0.00% Debt Service6,729 17,629 4,383 -75.14% 554,469 569,029 505,433 -11.18% NET SOURCE (USE) -80.11% OF EQUITY$1,877,531($125,270)($24,913) Capital Purchases$1,134,325 $1,128,175 $1,859,200 64.80% PERSONNEL: Number of FTE positions000 137 CITY OF HOPKINS WATER BUDGET Revenues and Expenses Enterprise Fund 703 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Current Services$1,352,283 $1,358,24646.69% $ 1,265,795$ 1,395,700$ 2,047,405 Intergovernmental Revenue 9,580 - - - - Permits 4,846 2,467 2,142 2,000 2,000 Interest Earnings 3,735 2,631 2,459 1,000 --100.00% Miscellaneous3.36% 140,720 152,898 1 52,801 1 54,800 1 60,000 Total Revenues1,511,1631,516,242 1,553,5001,423,197 2,209,405 42.22% Non-operating Revenue s - 496,275 930,348 - -#DIV/0! Total Revenues1,511,1632,012,517 1,553,5002,353,545 2,209,405 42.22% Operating Expenses Salaries, Wages and Benefits Salaries and Wages2.77% 303,986 401,427 3 27,120 2 50,013 2 56,944 Fringe Benefits0.28% 106,536 122,463 1 09,899 95,584 95,856 Materials, Supplies and Services 1.54% Professional & Technical Services 106,692 125,414 1 83,912 1 29,900 1 31,900 Utilities and Maintenance37.54% 247,943 379,449 5 54,391 4 79,700 6 59,800 Operations0.68% 9,611 13,227 23,253 21,900 22,050 City Support Services2.26% 245,992 231,161 2 24,927 2 24,927 2 30,003 Supplies and Materials7.13% 111,256 108,851 89,015 1 00,250 1 07,400 Depreciation 226,925 241,636 2 50,000 2 50,000 2 50,000 Total Operating Expenses1,358,9401,623,627 1,552,2741,762,517 1,753,953 12.99% Non-operating expenses-2.51% 114,154 119,755 240,486 140,487 1 36,962 Total Expenses1,473,0941,743,382 1,692,7612,003,003 1,890,915 11.71% Net Income (Loss) 38,070 269,135 3 50,542 (139,261) 3 18,490-328.70% The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 138 CITY OF HOPKINS FUND 703 – WATER FUND PROGRAM: Pumps & Wells and Water Distribution PROGRAM SUMMARY The Pumps & Wells and Distribution program of the Water Utility Fund provides maintenance to the City’s water well pumping system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Produce water supply sufficient to meet the needs of 17,000 people. 2. Flush and check all hydrants annually. 3. Check all wells each day. 4. Test samples each month to ensure safe water supply. 5. Reduce copper levels at taps to comply with Safe Drinking Water Act. 6. Install new effluent and discharge valves at water treatment plan #4. 7. Install dehumidifiers in # 4 Treatment Plant 8. Paint High Service Pump Room 9. Install new check valves at water treatment plan #4 10. Install new valves & hydrants in new construction areas. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange $1,423,197 $1,395,200 $2,209,405 58.36% OPERATING REVENUES: OPERATING EXPENSES: Personnel Services437,019 345,597 352,800 2.08% Other Services & Charges1,075,498 956,677 1,151,153 20.33% Depreciation Expense250,000 250,000 250,000 0.00% 12.99% Operating Income (Loss)1,762,517 1,552,274 1,753,953 930,348 158,300 0 -100.00% NON-OPERATING REVENUES: (240,486)(140,487)(136,962)-2.51% NON-OPERATING EXPENSES: 328.70% NET INCOME (LOSS)$350,542 ($139,261)$318,490 Capital Outlay/Construction$1,176,315 $2,305,000 $1,922,000 -16.62% PERSONNEL: Number of FTE positions3.433.433.43 139 CITY OF HOPKINS SANITARY SEWER BUDGET Revenues and Exenses p Enterprise Fund 707 ActualActualActualBudgetBudgetPercent 20142015201620162017 Change Revenues Current Services$2,026,839 $2,172,278 $2,045,107 $2,276,200 $2,932,504 28.83% Intergovernmental Revenue86,445 -92,190 - -#DIV/0! Permits - - - - -#DIV/0! Interest Earnings3,497 2,415 2,368 1,000 - -100.00% Miscellaneous Revenue650 150 9,926 - - #DIV/0! Total Revenues2,117,430 2,174,842 2,149,592 2,277,200 2,932,504 28.78% Non-operating revenue -297,004 9,776 - -#DIV/0! Total Revenues2,117,430 2,471,846 2,159,368 2,277,200 2,932,504 28.78% Operating Expenses Salaries, Wages and Benefits Salaries and Wages163,324 212,389 159,371 262,940 270,732 2.96% Fringe Benefits66,117 74,183 63,249 96,676 97,985 1.35% Materials, Supplies and Services Professional & Technical Services14,797 38,027 70,423 130,600 135,000 3.37% Utilities and Maintenance95,617 47,400 96,278 161,300 163,300 1.24% Operations1,293,329 1,327,190 1,456,613 1,459,566 1,502,523 2.94% City Support Services173,585 143,573 174,471 174,472 178,530 2.33% Supplies and Materials17,696 17,450 21,599 35,100 35,100 Depreciation158,431 174,826 170,000 170,000 170,000 Total Operating Expenses1,982,896 2,035,037 2,212,004 2,490,654 2,553,170 2.51% Non-operating expenses96,460 109,557 220,552 116,790 117,727 0.80% Total Expenses2,079,356 2,144,594 2,432,556 2,607,444 2,670,897 2.43% Net Income (Loss)38,074 327,251 (273,189) (330,244)261,607 -179.22% The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 140 CITY OF HOPKINS FUND 707 – SEWER FUND PROGRAM: Lift Stations, Collection & Disposal PROGRAM SUMMARY The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the City’s sanitary sewer lift station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer System for disposal. The Collection & Disposal program of the Sewer Utility Fund provides maintenance to the City’s sanitary sewer system. The system is comprised of sewers, manholes, and lift stations so that sewage may be transported to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Clean 33% of sanitary sewer lines in the City plus monthly checks of manholes in problem areas. 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility mapping system. 5. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 6. Repair or replace manhole cover & casting as needed. 7. Line & repair sewer mains as needed per T.V. reports, also repair of manhole structures. 8. Replace discharge pipe, check valves, guide rails and base elbows at LS 4 9. Emergency generators maintenance program. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange $2,172,277 $2,276,200 $2,932,504 28.83% OPERATING REVENUES: OPERATING EXPENSES: Personnel Services286,572 359,616 368,717 2.53% Other Services & Charges1,573,639 1,961,038 2,014,453 2.72% Depreciation Expense174,826 170,000 170,000 0.00% 2.51% Operating Income (Loss)2,035,037 2,490,654 2,553,170 299,569 1,000 0 -100.00% NON-OPERATING REVENUES: (109,557)(116,790)(117,727)0.80% NON-OPERATING EXPENSES: -179.22% NET INCOME (LOSS)$327,252 ($330,244)$261,607 Capital Outlay/Construction$0 $815,600 $1,831,000 124.50% PERSONNEL: Number of FTE positions3.463.763.76 141 CITY OF HOPKINS REFUSE BUDGET Revenues and Expenses Enterprise Fund 717 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Current Services$908,441$ 915,728$ 955,636$ 965,567$ 964,900-0.07% County Grant24,64527,95627,070 -26,000 9,3343,000 --100.00% Interest Earnings9,314 10,782 Miscellaneous13,20112,21921,09412,60016,50030.95% Total Revenues955,602966,6851,013,134981,1671,007,4002.67% Operating Expenses Salaries, Wages and Benefits Salaries and Wages187,328201,820207,263256,619263,9712.86% Fringe Benefits60,74964,57465,48991,46192,6831.34% Materials, Supplies and Services Professional & Technical Services118,655120,768158,252135,840137,7001.37% Utilities and Maintenance59,42325,29613,16746,50041,700-10.32% Operations144,747129,038152,895140,810143,3351.79% City Support Services117,537123,480123,095123,093123,5370.36% Supplies and Materials76,70998,75448,01265,65064,950-1.07% Depreciation47,90952,21456,00056,00056,000 Total Operating Expenses813,057815,943824,173915,973923,8760.86% Non-operating expenses25,00025,000125,00025,00025,000 Total Expenses838,057840,943949,173940,973948,8760.84% Net Income (Loss) 117,546 125,742 63,961 40,194 58,52445.60% The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 142 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Bulk Collection PROGRAM SUMMARY FY 2016FY 2017 The Bulk Collection program of the FY 2016ApprovedApprovedPercent Refuse Utility Fund is a user fee based ActualBudgetBudgetChange service that provides bulk item pickup for larger items. Pick ups are OPERATING REVENUES:$18,491 $13,000 $14,900 14.62% scheduled on a call-in basis and take place Thursdays throughout the year. OPERATING EXPENSES: A bulk item drop off event is provided Personnel Services15,199 16,713 16,713 0.00% twice per year (spring & fall). Other Services & Charges22,444 23,363 23,930 2.43% Operating Income (Loss)37,643 40,076 40,643 1.41% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: NET INCOME (LOSS)($19,152)($27,076)($25,743)-4.92% 1. Review and expand user fee based system. (Council Approval PERSONNEL: Required) Number of FTE positions0.260.260.26 2. Improve drop off procedures and increase efficiency at our bi-annual drop offs. PROGRAM: Yard Waste/Leaf Collection PROGRAM SUMMARY The Yard Waste/Leaf Collection program of the Refuse Utility Fund is a user fee based service that provides bagged yard waste and leaf collection weekly, mid-April through November, for Hopkins residential refuse customers. (Subject to change upon Council review.) A free drop-off site is also available to Hopkins residents three times a week. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor usage of free residential drop off site. 3. Track impact of curbside fee increase and compostable bag requirement. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES:$10,170 $10,000 $10,000 0.00% OPERATING EXPENSES: Personnel Services40,290 42,643 43,789 2.69% Other Services & Charges23,577 25,096 25,929 3.32% 2.92% Operating Income (Loss)63,867 67,739 69,718 NET INCOME (LOSS)($53,697)($57,739)($59,718)3.43% PERSONNEL: Number of FTE positions0.620.620.62 143 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Recycle PROGRAM SUMMARY The Recycle program of the Refuse Utility Fund provides bi-weekly single stream recycle collection for 2,990 residences in the City Service area. Collection is provided by a private licensed hauler who is contracted by the City. Commercial and multi-family properties are required to contract independently for recycling services. FY 2016FY 2017 FY 2016ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ActualBudgetBudgetChange ACCOMPLISHED IN 2017: 1. Monitor the Single Stream Recycling OPERATING REVENUES:$155,638 $171,900 $197,900 15.13% Program and work with residents to OPERATING EXPENSES: increase the volume of waste recycled. Personnel Services31,781 34,112 35,027 2.68% 2. Verify compliance of commercial and Other Services & Charges141,566 160,456 160,548 0.06% multi-family properties. Operating Income (Loss)173,347 194,568 195,575 0.52% 3. Continue to promote waste abatement through public awareness campaigns and NON-OPERATING REVENUES:28,061 1,600 1,600 0.00% educational presentations. NET INCOME (LOSS)$10,352 ($21,068)$3,925 -118.63% PERSONNEL: Number of FTE positions0.410.410.41 PROGRAM: Brush Service PROGRAM SUMMARY The Brush Service program of the Refuse Utility Fund is a user fee based service that provides for the collection of curbside brush weekly on a call-in basis on Tuesdays throughout the year. Free yard waste/brush drop off is offered three times per week from mid-May through November. (Subject to change upon Council review.) MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor impact of curbside brush pick-up fee increase on program usage. 3. Continue free residential drop off system. FY 2016FY 2017 FY 2016ApprovedApprovedPercent BudgetBudgetChange Actual $0 $0 $0 0.00% OPERATING REVENUES: OPERATING EXPENSES: Personnel Services28,362 58,422 59,924 2.57% Other Services & Charges20,450 27,616 28,009 1.42% 2.20% Operating Income (Loss)48,812 86,038 87,933 2.20% NET INCOME (LOSS)($48,812)($86,038)($87,933) PERSONNEL: Number of FTE positions0.6550.6550.655 144 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Disposal PROGRAM SUMMARY The Disposal program of the Refuse Utility Fund provides automated refuse collection by City refuse trucks and personnel. Residential Refuse is collected from roll out carts with a fully automated truck on one of four designated route days. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange $743,543 $781,667 $783,000 0.17% OPERATING REVENUES: OPERATING EXPENSES: Personnel Services150,762 196,190 201,201 2.55% Other Services & Charges289,299 275,362 272,806 -0.93% Depreciation Expense52,214 56,000 56,000 0.00% 0.47% Operating Income (Loss)492,275 527,552 530,007 10,782 3,000 0 -100.00% NON-OPERATING REVENUES: (25,000)(25,000)(25,000)0.00% NON-OPERATING EXPENSES: -1.78% NET INCOME (LOSS)$237,050 $232,115 $227,993 Capital Outlay/Construction$232,515 $0 $0 0.00% PERSONNEL: Number of FTE positions2.1452.1452.145 145 CITY OF HOPKINS STORM SEWER BUDGET Revenues and Expenses Projected Enterprise Fund 740 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Current Services$802,898$805,542$810,183$802,000$802,000-1.01% Interest Earnings8,9442,000-76.36% 8,385 8,459 8,200 Total Revenues811,842813,927818,642804,000810,200-1.79% Non-operating revenues -605,84366,841 - --100.00% Total Revenues811,8421,419,770885,483804,000810,200-9.20% Operating Expenses Salaries, Wages and Benefits Salaries and Wages45,50339,53432,87951,28951,28955.99% Fringe Benefits13,70110,52611,52614,28214,28223.91% Materials, Supplies and Services Professional & Technical Services8,8011,00010,72014,00013,00030.60% Utilities and Maintenance96,8344,90923,49444,50044,55089.41% City Support Services87,49063,51152,67554,511 -3.48% Supplies and Materials1,6688612,6481,5001,500-43.36% Depreciation211,108230,152227,000227,000227,000 Total Operating Expenses465,103350,492360,942407,082351,62112.78% Non-operating expenses415,10769,634247,52397,414145,428-60.64% Total Expenses880,210420,126608,465504,496497,049-17.09% Net Income(68,368)999,644277,017299,504313,1518.12% The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 146 CITY OF HOPKINS FUND 740 – STORM SEWER FUND PROGRAM: Sewer Maintenance PROGRAM SUMMARY The Sewer Maintenance program of the Storm Sewer Fund maintains all storm sewer lines and storm inlets to assure adequate run-off. Creeks and ditches must be monitored to assure proper run-off and weed and pollution control. This work is done with staff and equipment from the Water & Sewer and Street & Sanitation divisions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Continue upgrades of storm water system including catch basin maintenance upgrades and open drainage ditch maintenance. 2. Continue reviewing overall city storm water drainage system and meet all requirements of city’s National Pollution Discharge Elimination System (NPDES), Phase II Storm Water Pollution Prevention Plan (SWPPP). 3. Continue grit chamber cleaning 4. Clean catch basins and inspect for repair. FY 2016FY 2017 FY 2016ApprovedApprovedPercent BudgetBudgetChange Actual $810,183 $802,000 $802,000 0.00% OPERATING REVENUES: OPERATING EXPENSES: Personnel Services44,406 65,571 65,571 0.00% Other Services & Charges89,542 114,511 59,050 -48.43% Depreciation Expense227,000 227,000 227,000 0.00% -13.62% Operating Income (Loss)360,948 407,082 351,621 75,300 2,000 8,200 310.00% NON-OPERATING REVENUES: (247,523)(97,414)(145,428)49.29% NON-OPERATING EXPENSES: 4.56% NET INCOME (LOSS)$277,012 $299,504 $313,151 Capital Outlay/Construction$7,979 $561,000 $1,116,000 98.93% PERSONNEL: Number of FTE positions0.630.630.63 147 CITY OF HOPKINS PAVILION Revenues and Expenses Projected Enterprise Fund 747 ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues 8.43% Rental$ 352,112$ 323,156$ 331,671$ 356,000$ 386,000 Interest Earnings 877 - - 1,000 --100.00% Miscellaneous-46.13% 25,058 24,642 22,133 33,600 18,100 Total Revenues347,798 3.46% 378,048 353,804 390,600404,100 Non-operating revenues 10,373 63,918 63,915 65,000 --100.00% Total Revenues-11.30% 388,421 411,716 417,719 455,600 404,100 Operating Expenses Salaries, Wages and Benefits Salaries and Wages2.86% 181,248 181,751 187,250 187,858 193,237 Fringe Benefits19.02% 50,007 51,608 52,745 52,368 62,329 233,359 6.39% Total Salaries and Wages 231,255 239,995 240,226255,566 Materials, Supplies and Services Professional & Technical Services 6,080 6,388 4,735 6,900 3,500-49.28% Utilities and Maintenance-3.26% 98,572 90,167 83,046 95,100 92,000 Operations-0.47% 76,688 82,701 73,739 74,450 74,100 City Support Services 17,602 15,166 16,075 16,076 16,076 Supplies and Materials-9.16% 18,314 16,670 20,065 19,100 17,350 -4.06% Total Materials Supplies & Service 217,256 211,093 197,660 211,626 203,026 451,8521.49% Total Operating Expenses 448,510 444,452 437,655 458,592 Non-operating expenses 3,016 3,363 2,624 2,625 2,225-15.24% Total Expenses1.40% 451,874 447,468 440,279 454,477 460,817 Net Income (Loss) (63,453) (35,752) (22,560) 1,123 (56,717)-5150.49% The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 148 CITY OF HOPKINS FUND 747 – PAVILION FUND PROGRAM: Ice, Turf, Dry Floor, & Room Rental PROGRAM SUMMARY The rental programs of the Pavilion Fund manages and schedules public use groups and maintenance for the ice arena/pavilion which will utilize the facility to its maximum potential and generate adequate revenue to offset the cost of operations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2017: 1. Create and market programs, events, and opportunities to increase the community’s recreational options. 2. Meet with local athletic associations to gather input and ideas on how we can better serve their needs. 3. Develop and utilize energy saving procedures and equipment. Evaluate environmental impact of current facility supplies and replace with eco-friendly products where appropriate 4. Operate a budget to maximize revenues. FY 2016FY 2017 FY 2016ApprovedApprovedPercent ActualBudgetBudgetChange $348,060 $380,100 $293,100 -22.89% OPERATING REVENUES: OPERATING EXPENSES: Personnel Services239,995 240,226 255,566 6.39% Other Services & Charges125,660 139,626 131,026 -6.16% Depreciation Expense72,000 72,000 72,000 0.00% 1.49% Operating Income (Loss)437,655 451,852 458,592 69,659 75,500 111,000 47.02% NON-OPERATING REVENUES: (2,624)(2,625)(2,225)-15.24% NON-OPERATING EXPENSES: -5150.49% NET INCOME (LOSS)($22,560)$1,123 ($56,717) Capital Outlay/Construction$0 $125,000 $0 -100.00% PERSONNEL: Number of FTE positions2.42.42.9 149 CITY OF HOPKINS DEBT SERVICE FUNDS Revenue s and Expenditures ActualActualActualBudgetBudgetPercent 20142015201620162017Change Revenues Property Tax$1,876,459$2,799,325$2,581,352-7.79% $ 1,589,092$ 1,530,837 Special Assessments1,020,853828,529829,065909,355973,9527.10% Interest20,44422,56415,68716,1603.02% 28,298 Bond Premium190,674452,970 425,129 - - Transfer In6,967,005756,2481,191,965391,2771,545,248294.92% Bond Proceeds8,240,000 12,310,00018,735,000 - - Total Revenues 22,304,04118,028,068 16,683,0235,116,71224.32% 4,115,644 Expenditures Bond expenditures Professional Fees98,482329,052425,09518,0000.28% 17,950 Principal1,970,0003,075,0003,075,0003,080,0000.16% 8,570,000 Interest683,725814,199814,1991,048,63928.79% 617,988 Fiscal charges5,6748,3545,5009.09% 7,378 6,000 Bond Discount 43,610- - - - Deposit to Escrow Account 3,937,887-7,305,660 3,678,548- Transfer Out8,269,4668,765,862 7,118,707 - - Total Expenditures 20,581,01211,070,957 20,394,1707,831,187100.15% 3,912,649 Sources (Uses) of Fund Balance6,957,111(3,711,147)202,995(2,714,475)-105.47% 1,723,029 Debt Service funds finance and account for the payment of interest and principal on all general obligation debt other than debt issued for an enterprise fund. InJanuary 2014 the City's credit AA+ rating was upgraded to a following an interium rating review. This rating has been reaffirmed each year since. 150 CITY OF HOPKINS GLOSSARY OF TERMS Accrual Basis – The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or the payment of cash may take place, in whole or in part, in another accounting period. Adopted Budget – The financial plan of revenues and expenditures for a fiscal year as adopted by the City Council. Appropriation – A specific amount of money authorized by the City Council, generally during adoption of the annual budget, used to make expenditures for specific purposes. Ad Valorem Tax – Money collected from all the real property within the City based upon the value of the property. Annual Budget – The budget authorized by resolution of the City Council for the fiscal year. Appropriation – Authorization by the City Council to incur obligations and spend City funds. Appropriations are usually made for fixed amounts and are typically granted for one year. Artstreet - Hopkins Artstreet is an ongoing program established in 2010 to showcase original art works in an accessible setting. A collaboration among the City of Hopkins, the Hopkins Business & Civic Association and the Friends of the Hopkins Center for the Arts, this project is part of a long- term vision for incorporating public art into Hopkins and enriching the lives of its residents and visitors. This project is made possible, in part, by funds provided by the Metropolitan Regional Arts . Council through an appropriation by the Minnesota Legislature Assets – Property owned by a government which as a monetary value. Assessed Valuation – A value established by the City Property Appraiser for all real or personal property for use as a basis for levying property taxes. Balanced Budget – A budget in which expenditures are equal to income. Bond – A written promise to pay a sum of money on a specific date at a specified interest rate as detailed in a bond resolution. Bond Proceeds – Funds received from the sale of any bond issue. Budget – The financial plan for a specific period of time that identified proposed expenditures and the sources of revenue to pay for them. Budget Adjustment – A revision to the adopted budget occurring during the affected fiscal year as approved by the City Council by an amendment or a transfer. Budget Documents – The official written statement prepared by the Finance Director and supporting staff, which presents the proposed budget to the legislative body. Budget Calendar – The schedule of key dates involved in the process of adopting and executing an adopted budget. 151 CITY OF HOPKINS Budget Message – The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, as well as the views and recommendations of the City Manager. CDBG Community Development Block Grant – This fund receives and expends the City’s allocation of the Federal Community Development Block Grant Program money. Capital Asset – Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Improvement Program (CIP) – A five year schedule of capital improvement projects and the means of financing them. This is a flexible budget document that is used as a planning tool for needed improvements. Amounts approved in the CIP are considered guidelines and are not officially adopted as budgeted amounts until they are incorporated in the operating budget of one of the City’s funds. Capital Outlay – Expenditures that result in the acquisition of fixed assets that have a value over $1,000 and a useful life greater than one year. Capital Project Funds – The funds that account for all resources unused for the acquisition or construction of capital facilities, except those financed by Proprietary Funds. Certified Levy – Total tax levy of a jurisdiction, which is certified to the County Auditor. CERT – Community Emergency Response Team. The CERT Program consists of a group of volunteers who have been trained to assist with basic disaster response such as fire safety, light search and rescue, team organization and disaster medical operations. Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services – The cost of items related to a contractual agreement. Examples would be professional services such as legal, engineering, actuarial and consultants. Court Fines and Forfeits – Fines imposed on individuals by the courts for various illegal acts performed within the City. Debt Service Funds – the funds that account for the payment of principal and interest on outstanding debt for the City. Deficit – The excess of expenditures over revenues. Department – Basic organizational unit of City government, responsible for carrying out a specific function. Depreciation – Expenditures incurred when spreading the cost of an asset over its estimated useful like rather than deducting the entire cost in the year the asset is purchased. Enterprise Fund – The funds that account for the financing of self-supporting activities of governmental units and render services to the general public based on user charges. 152 CITY OF HOPKINS Estimated Market Value – Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. Expenditure – Decreases in financial resources other than through interfund transfers. Fiscal Disparities – The program created by the Metropolitan Fiscal Disparities Act which shares growth in the commercial-industrial tax base in the seven county metropolitan area. Forty percent of the value of new commercial-industrial development since 1971 is pooled and redistributed among the 300 taxing districts to address uneven business development throughout the region. Fiscal Year – For budgeting purposes the City’s fiscal year is the calendar year. Fixed Asset – Purchases of a long-term nature, which are to be held and used. Examples would be land, buildings, machinery, furniture and equipment. FTE – Equivalent of one employee working fulltime, or 2.080 hours per year. A FTE can be filled by any number of employees whose combined hours total 2,080 per year. Fund – A separate accounting entity, with a set of self-balancing accounts for recording the collection of revenues and the payment of expenditures to carry out a specific function. Fund Balance – Fund Balance is the difference between assets and liabilities in governmental funds (i.e. general fund, special revenue funds, capital project funds, debt service funds and permanent funds). Non-spendable Fund Balance – Describes the amount of a fund balance that cannot be spent because it is either not in spendable form or there is a legal or contractual requirement for the funds to remain intact. Spendable Fund Balance – Describes the amount of fund balance that is available for appropriation based on the constraints that control how specific amounts can be spent. Typically, a significant portion of a government’s spendable resources can be spent only for specified purposes. The following categories define the revenue source and the level of force of the constraint on spending Restricted Fund Balance – The restricted fund balance category includes the portion of the spendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes Committed Fund Balance – The committed fund balance classification includes the portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to year end but the amount can be determined at a later date. Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. 153 CITY OF HOPKINS Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. GASB (Governmental Accounting Standards Board) – It is the highest source of accounting and financial reporting guidance for state and local governments. General Fund – The largest fund in the City, the General Fund accounts for most of the City’s financial resources. General Fund revenues include: property taxes, licenses and permits, local taxes, service charges and other types of revenues. This is the fund that accounts for the revenues and expenditures necessary to deliver basic operating services: police, fire, finance, parks, public works, etc. General Obligation Bonds – When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds with are to be repaid from taxes and other general revenues. GFOA (Government Finance Officers Association) – the professional association of state and local finance officers in the United States who are dedicated to the sound management of government financial resources. The association sets program standards for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Award. Governmental Funds – The General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. HBCA – Hopkins Business and Civic Association, ensures a strong economic development climate, provides promotional activities, encourages community involvement and fosters a sense of community among individuals, civic organizations and businesses Hopkins in Motion – This annual event focuses on the walkability/ livability of Hopkins and encourages participants to be active while having fun. Indirectly Funded Amount – The portion of appropriates not funded by program revenues such as fees and grants. This portion is funded from shared revenues such as property tax, governmental revenues or a city-wide fee not directly attributed to any one program. Interest Earnings – Interest received from the investment of cash in a fund. Intergovernmental Revenues – Funds received from State or Federal governments in the form of grants or shared revenues for various activities. Internal Service Funds – The funds within the Proprietary Fund that account for the financing of goods or services provided by one department or agency to other departments or agencies of a government. IT – Information Technology Department of the city. This department provides computer technology support to all city departments. 154 CITY OF HOPKINS Levy – To impose taxes, special assessments or service charges. Licenses – Revenues received by the issuance of various licenses that are granted to various businesses in the City. Local Government Aid(LGA) – Money given to the City from the State based on a formula that was originally designed to provide tax relief and equalization among cities. LMC – The League of Minnesota Cities is a membership organization dedicated to promoting excellence in local government. The League serves its more than 800 member cities through advocacy, education and training, policy development, risk management, and other services. LRT – Light Rail Transit, a commuter train system in the Minneapolis/St. Paul metropolitan area. Major Account Series – Three classifications of expenditures made by the City. Salaries, Wages and Benefits – Costs relating to employees or temporary help, including fringe benefits. Materials, Supplies and Services – Costs relating to articles of non-durable nature, such as office supplies; professional and technical services; utilities and maintenance; operations and city support services. Capital Outlay – Costs of durable goods such as furniture and equipment. Reimbursed Expenditures – Offset against costs for services provided by one fund to another fund. Major Fund – Governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. Market Value Homestead Credit (MVHC) – Started in 2002, this is the primary State program for property tax relief. The State remits a portion of sales and income taxes to local government to assist in keeping property taxes down. MCES – Metropolitan Council Environmental Services provides the City with wastewater service. Miscellaneous Revenue – Funds collected from various sources generally on a non-recurring basis. Modified Accrual Basis – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Net Assets – The equity associated with general government less liabilities. Non-major Fund – A governmental fund or enterprise fund that is reported in total in the basic fund financial statements. Operating Expenditure – Expenditure classifications based upon the types of categories of goods and services purchased. Typical objects include: personal services (salaries and wages); contracted services (utilities, maintenance, contracts, travel); supplied and materials; and capital outlay. 155 CITY OF HOPKINS Operating Budget – Financial plan for the fiscal year, which authorizes proposed personnel complements, expenditures and the revenues to finance them. Penalties – Charges to utility customers caused by late payment of their water, sewer, and refuse bills. Permits – Revenue derived from various permits as defined in the City Code, for the performance of a specific action. For example, building a house. Personal Services – The cost of salaries and wages paid to employees as well as the fringe benefits associated with employment (i.e. Social Security, PERA, health insurance, life insurance, etc.). Program – Within each Department are several divisions or programs in the City, each charged with carrying out a specific function. Proposed Budget – Budget as submitted by the City Manager to the City Council. Proprietary Funds – The funds that account for government operations financed and operated in a manner similar to a private business. Refuse Service – Revenue incurred from the sale of trash pick-up and disposal, leaf pick-up, yard waste and recycling to residential customers of the City. Retained Earnings – An equity account reflecting the accumulated earnings of the City’s Proprietary (Enterprise) Funds. Sewer Service – Revenue incurred from the sale of sanitary sewer service to customers of the utility. Special Assessment – Receipts from assessments placed on property within the City for public improvements that have benefited that property. Special Revenue Funds – A fund that accounts for revenues derived from specific taxes or other earmarked revenue sources. Storm Sewer Sales – Revenue derived from a storm sewer utility fee assessed property owners based on the amount of impervious surface on their property. Revenues are used to maintain and improve the City’s storm sewer system. SWLRT – Southwest Light Rail Transit. A commuter train system in the Southwest area of the Minneapolis/St. Paul metropolitan area. Tax Capacity – County tax base for the purposes of levying property taxes. Properties are assigned rates at which their values will be converted into the tax base, (see tax classification rate). Tax Capacity Rate – Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. Tax Classification Rate – Rates at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type. 156 CITY OF HOPKINS Tax Increment Financing – Financing tool originally intended to combat severe blight in areas which would not be redeveloped “but for” the availability of government subsidies derived from locally generated property tax revenues. Tax Increments – The value of local taxes collected on a redeveloped or developed property, above the base year taxes. TIF – An abbreviation for Tax Increment Financing. TOD – Transit Orientated Development. A term used to describe development surrounding Light Rail Transit. Transfers – Funds transferred between City funds. Truth-in-Taxation – Procedures adopted by the 1998 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. These procedures are revised annually. Truth-in-Taxation Public Hearing – Statutory requirement for most local governments to hold public hearings on their proposed budgets and property tax levies. Water Sales – Revenue earned from the sale of water to customers of the utility. Working Capital – Current assets minus current liabilities. This measure is used as a gauge in determining appropriate fund balances. 157