Financial Management Plan (FMP) Update; BishopCity of Hopkins
MEMORANDUM
Date: January 9th, 2018
To: Mayor & City Council
From: Nick Bishop, Finance Director
Subject: Financial Management Plan Update
The Financial Management Plan (FMP) was first implemented in 2014 for the 2015 budget
cycle. The purpose of the plan, to ensure the financial stability of the City’s tax supported funds
by incorporating operational and capital needs into one unified document, remains the same.
The FMP is also used to evaluate the affordability of financial decisions by monitoring the
overall tax levy, tax impact on a median valued home or the City’s tax rate.
The FMP can be separated into two distinct parts. The first part is largely out of the City’s
control. It contains assumptions for tax capacity, TIF, fiscal disparities, new construction,
increases in market value and median home value. The second part is centered on the City’s
operating budget, capital expenditures and and debt service. This is largely under the City’s
control and will be the focus at the work session.
At the work session, we will discuss the updates made during the 2018 budget cycle and new
initiatives and additions being considered. This will serve as the first step in the 2019 budget
cycle.
FINANCE DEPARTMENT
City of HopkinsFinancial Management Plan UpdateExecutive SummaryJanuary 9, 20182018 2019 2020 2021 2022 2023Tax LevyBudgetGeneral Fund 10,747,657 11,293,090 11,820,381 12,292,986 12,866,081 13,803,743 Capital Improvements 75,000 100,000 100,000 100,000 100,000 100,000 Arts Center 250,000 257,500 400,000 700,000 700,000 700,000 Pavilion - 32,306 32,306 332,306 332,306 482,306 Debt Service 3,149,223 3,658,429 4,076,846 4,315,548 4,310,770 3,675,485 Equipment Fund - 45,783 45,783 45,783 95,783 145,783 Total City Levy 14,221,880 15,387,108 16,475,316 17,786,623 18,404,941 18,907,317 % Increase 8.19% 7.07% 7.96% 3.48% 2.73%Additional Projects to ConsiderEquipment Fund - 204,217 204,217 204,217 154,217 104,217 Step and Benefit Increases - 190,000 196,000 101,000 104,000 107,000 City Hall Remodel - - 202,000 202,000 202,000 202,000 $2.5M, 15 Years, 2.5%Central Park - - - - - - UnfundedLevy Required - 394,217 602,217 507,217 460,217 413,217 Total City Levy w/ Additions14,221,880 15,781,325 17,077,533 18,293,840 18,865,157 19,320,534 % Increase 10.97% 8.21% 7.12% 3.12% 2.41%2018 2019 2020 2021 2022 2023BudgetGeneral Fund 1,093 1,158 1,215 1,268 1,323 1,422 Capital Improvements 8 10 10 10 10 10 Arts Center 25 26 41 71 71 71 Pavilion - 3 3 34 34 49 Debt Service 320 372 414 439 438 374 Equipment Fund - 5 5 5 10 15 Total City Levy per Home 1,446 1,575 1,688 1,826 1,886 1,941 $ Increase 129 114 138 60 54 Additional Projects to ConsiderEquipment Fund - 24 24 24 18 12 Step and Benefit Increases - 22 23 12 12 12 City Hall Remodel - - 23 23 23 23 Central Park - - - - - - Additional Levy per Home - 46 70 59 54 48 Total Tax Levy per Home 1,446 1,620 1,758 1,885 1,940 1,989 $ Increase 175 138 127 55 49 ProjectedProjectedTaxes for Median Value Home5 year average = $995 year average = $109\\lisa\share\FINANCE\FMP\2018 FMP\Hopkins FMP 2018 V8 Collaborative Process
Financial Management
Plan Update
January 9, 2017
Updates after 2018 Budget Cycle
2018 2019 2020 2021 2022 2023
Budget
Based on 6-20-17
Projections 1,434 1,574 1,669 1,793 1,890 1,928
$ Increase 140 95 124 97 38
Based on 2018
Budget 1,446 1,575 1,688 1,826 1,887 1,941
$ Increase 129 113 138 61 54
Projected
5 year
average = $99
5 year
average = $99
Taxes for Median
Value Home
2018 2019 2020 2021 2022 2023
Budget
General Fund 1,093 1,158 1,215 1,268 1,324 1,423
Capital Improvements 8 10 10 10 10 10
Arts Center 25 26 41 71 71 71
Pavilion - 3 3 34 34 49
Debt Service 320 372 414 439 438 374
Equipment Fund - 5 5 5 10 15
Total City Levy 1,446 1,575 1,688 1,826 1,887 1,941
$ Increase 129 114 138 61 54
Projected
Taxes for Median
Value Home
Additional Initiatives & Projects
2019 2020 2021 2022 2023
Tax Levy
Equipment Fund 204,217 204,217 204,217 154,217 104,217
Step and Benefit Increases 190,000 196,000 101,000 104,000 107,000
City Hall Remodel - 202,000 202,000 202,000 202,000
Central Park - - - - -
Levy Required 394,217 602,217 507,217 460,217 413,217
Projected
Additional Initiatives & Projects
2019 2020 2021 2022 2023
Equipment Fund 24 24 24 18 12
Step and Benefit Increases 22 23 12 12 12
City Hall Remodel - 23 23 23 23
Central Park - - - - -
Additional Levy 46 70 59 54 48
ProjectedTaxes for Median Value Home
Equipment Replacement Fund
Includes levy from 2018-2022 plan
ERP would be funded through 2023
Pays off interfund loan in 2021
Step and Benefit Increases
Additional steps above 6-20-17 FMP
projections
Additional percentage increase for health care
9% increase in 2018
City Hall Remodel
Presented by Wold at 11-13-17 work session
2019 Construction
$2,500,000 paid over 15 years beginning 2020
Central Park
Presented earlier tonight
Not currently funded
Total Levy w/ Additions
2018 2019 2020 2021 2022 2023
Total Tax Levy 1,446 1,620 1,758 1,885 1,940 1,989
$ Increase 175 138 127 55 49
5 year
average = $109
Next Steps
Settle all employee contracts
Update City Council with any changes