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2018 City of Hopkins, MN BudgetCity of Hopkins, Minnesota Annual Budget January 1 - December 31, 2018 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, 2018 City Council Term Expires Mayor Molly Cummings ................................................................................ December 31, 2019 Councilmember Katy Campbell .................................................................... December 31, 2021 Councilmember Jason Gadd .......................................................................... December 31, 2019 Councilmember Kristi Halverson ................................................................. December 31, 2021 Councilmember Aaron Kuznia ...................................................................... December 31, 2019 Management Team Mike Mornson ......................................................................................................... City Manager Kersten Elverum ............................................................... Director of Planning & Development Ari Lenz .................................................................................... Director of Community Services Nick Bishop ..................................................................................................... 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 2018 Summary Budget Information by Major and Non-Major Funds ......................... 28 2018 Budget Summary – All Funds .......................................................................... 29 2018 Revenue Summary – All Funds ....................................................................... 31 2018 Appropriation Summary – All Funds ................................................................. 35 Property Tax Information .......................................................................................... 38 Fund Balance ........................................................................................................... 42 Debt Overview .......................................................................................................... 46 Capital Improvements Overview ............................................................................... 50 General Fund Budget Projection ............................................................................... 55 Other Major Funds Budget Projections ..................................................................... 59 General Fund ............................................................................................................... 63 Special Revenue Funds .............................................................................................. 110 Internal Service Fund .................................................................................................. 135 Enterprise Funds ......................................................................................................... 137 General Debt Service Funds ....................................................................................... 149 Glossary...................................................................................................................... 150 City of Hopkins 1010 First Street South • Hopkins, MN 55343-7573 • Phone: 952-935-8574 • Fax: 952-935-1834 Web address: www.hopkinsmn.com City of Hopkins Mission Statement • Inspire • Educate • Involve • Communicate • January 2018 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 2018 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 2018 tax levy. The final result is an adopted 2018 budget totaling $29,347,598 of which $13,435,355 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 Hopkins 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. 2018 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 Median Value Home – A Financial Management Plan model is being used that can provide council with long range estimates of the tax changes on a median value home. The model incorporates many variable that can affect tax rates, including projected operating costs, future debt service, capital costs, and changes to the tax base. • Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for each of the City’s general fund programs. 4 CITY OF HOPKINS HOPKINS IN 2017 In the year 2017, the nation’s economy continued to stabilize. The governmental environment and positive impacts allowed small grown for the City of Hopkins. The city continued to provide all core services through 2017 and was able to add three full-time positions, two police officers and one public works employee. Program budgeting has helped in our analysis of city services, while we look at ways to continue to as efficient as possible. The Council and city staff also continues to investigate additional revenue sources. In 2017, the City’s tax base continued to grow due to several new apartment development projects and a general increase in residential home value. The City's total tax capacity values increased 5.7% due mainly to these factors. In 2017 the overall taxable market value increased by 6.33% due to same factors. The city’s levy has increased an average of 6.81% per year over the last five years. The City’s general fund expenditures have increased an average of 4.39% 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. This was affirmed by a Classification and Compensation Study conducted during 2017. 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. Excelsior Crossings is a large corporate campus with three buildings totaling over 900,000 square feet and room for approximately 4,000 employees. A long-time tenant, Cargill, began the process of relocating to a new facility outside of Hopkins during 2017. A division of another fortune 500 company, US Bank, has already signed a lease for one of the three buildings. The two remaining buildings are Class A office complexes in an attractive area and are projected to be occupied in the future. 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 small parcel in the downtown district into seven 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 241 high end luxury apartments and retail space. • Redevelopment of ten duplexes into 51 affordable apartments adjacent to public transit and parks. 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 2018 • 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:  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 2018 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 however the legislature has incrementally increased the Local Government Aid (LGA) allocated to cities since 2015. The City received approximately $390,000 of LGA in 2015, $415,000 in 2016, $425,000 in 2017 and will receive $550,000 in 2018. Real Estate Values – Overall real estate values in this community increased by approximately 6.33% in 2017. Despite the market value stability this resulted in an increase in the City’s tax capacity of 5.7 % due to apartment property which has a lower tax capacity than commercial or industrial properties. Overall, general fund budgeted expenditures will increase by 4.67% in 2018 due in large part to salaries and benefits which included the addition a full time fire marshal. We projected a 4.25% change for 2019- 2022. 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. • Tax Impact on Median Value Home • Comparisons of comparable communities • Goal achievement 2018 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 the City continues to make infrastructure improvements. The city’s tax capacity rate has held fairly steady over the past five years ranging from 62.61% to 66.34%. The proposed 2018 city tax rate of 66.34% is a 5.33% increase from 2017. The adopted General Fund budget has a 4.67% expenditure increase for a total General Fund Budget of $13,435,355. The total tax levy increase for 2018 is 9.86%. 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 $234,000 is about $120.49 or approximately $1,446 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 2018 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, 2017. 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 CITY FACILITIESCity Hall1010 First St S, Hopkins, MN 55343952-935-8474Depot Coffee House 9451 Excelsior Blvd, Hopkins, MN 55343952-938-2204Fire Department101 17th Ave S, Hopkins, MN 55343952-938-8885Hopkins Activity Center 33 14th Ave N, Hopkins, MN 55343952-939-1333Hopkins Center for the Arts 1111 Mainstreet, Hopkins, MN 55343952-979-1100Pavilion Ice Arena11000 Excelsior Blvd, Hopkins, MN 55343952-939-1410Police Department1010 First St S, Hopkins, MN 55343952-548-6440Public Works11100 Excelsior Blvd, Hopkins, MN 55343952-939-13829 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 approximately 19,000 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. It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival, now in its 84th 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 19,000 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. Summertime in Hopkins at the Clock Tower Plaza Population: 1920 3,055 1930 3,834 1940 4,100 1950 7,595 1960 11,380 1970 (census) 13,395 1980 (census) 15,336 1990 (census) 16,534 2000 (census) 17,145 2016 (estimate) 19,000 11 CITY OF HOPKINS CITY STATISTICS: Founded 1852 School Enrollment 8,182 Dated of Incorporation November 27, 1893 Education Date of Adoption of City Charter December 20, 1947 Elementary Schools 6 Form of Government Council - Manager Middle Schools 2 Fiscal Year Begins January 1 High School 1 Area of City 4.1 Square Miles Private Schools 8 2,616 acres Charter Schools 2 Housing Single Family 2,759 Elections: Multiple Family 5,044 Registered Voters - last general election 10,366 Duplexes 512 Number of votes cast last general election 2,164 Townhouses 869 Percentage of registered voters voting 21% Population by Age City Bond Rating 0 to 19 4,487 Stand & Poor's AA+ 20 to 64 11,378 Over 65 2,212 Miles of Streets and Alleys: Income by Household Trunk Highways 3.57 Less than $25,000 1796 County 5.32 $25,000 - $50,000 2151 City Streets 47.5 $50,000 - $75,000 1787 Alleys 9.52 $75,000 - $100,000 882 $100,000 - $150,000 898 Miles of Sewers: $150,000 or more 574 Storm Sewers 21.4 Sanitary Sewers 45.46 Median Household Income $51,500 Miles of Watermains 52.6 Per Capita Personal Income $31,800 Civil Defense Warning Sirens 3 Unemployment Rate 3.6% Fire Protection: Population Composition Number of Stations 1 White 56.78% Number of FT Employees 4 African American 20.05% Volunteer Firefighters 33 Asian 8.55% Hispanic or Latino 10.57%Police Protection: Two or More Races 2.11% Number of Stations 1 Native American 0.75% Number of Employees 47 Other Races 1.20% Parks City Parks 16 Playgrounds 11 Total Property Values $1.886 billion Skating Rinks 7 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: o 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:  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 Inspire. Educate. Involve. Communicate. All people feel safe and respected, and diversity is celebrated. Business growth is supported and a vibrant downtown is maintained. People enjoy exceptional government services, neighborhoods and outstanding schools. Support a vibrant business community Promote and enhance city events Provide accessible, friendly and efficient city services Embrace and strengthen partnerships Improve walking and biking infrastructure in the city Practice environmental responsibility Support a range of housing options Support transit-oriented development Involve diverse populations Engage the rental community of Hopkins Inspire community and citizen engagement Take It To Them Urban Design: Do It Right Preserve the Home Town Feel of Hopkins Creating a spirit of community where... MISSION City of STRATEGIES2018 VISION GOALS GOAL SETTING 201814 »Implement the sidewalk and trail master plan and partner with other agencies to improve and update paths, trails and crossings in the community, supporting “Complete Streets” initiatives »Explore local transportation opportunities »Develop a schedule for rezoning properties to the mixed-use zoning classification and begin implementation »Partner with Hennepin County and SWLRT cities to maximize benefit and minimize disruption during construction »Work with Minnetonka and Hennepin County to implement the vision for the Shady Oak LRT Station »Work with all stakeholders to implement and build on recommendations of the Blake Road Corridor plans »Continue to explore and promote sustainability initiatives in our community »Refine Mainstreet design and façade improvement program, and secure ongoing funding »Explore ways to strengthen the edges of downtown »Ensure the Comprehensive Plan reflects action steps »Explore ways to enhance the Mainstreet experience »Strengthen image of arts community »Promote shopping local »Promote business assistance programs »Develop wayfinding plan for community »Work with “Think Hopkins” on business recruitment efforts »Promote city events large and small (Raspberry Festival, Mainstreet Days, Old Fashioned Holiday, Summerfest, etc.) and have a city booth at events when possible »Improve service delivery through e-commerce »Promote interactive park, trails, and facilities directory on website »Support History Center transition to Mainstreet »Grow partnerships with: »Joint Recreation with Minnetonka »Hennepin County »Hopkins School District »Watershed Districts »Met Council »Three Rivers Park District »Surrounding cities »Faith and community-based organizations »Business community »Promote cultural celebrations »Explore methods to involve Multicultural Advisory Committee in community building »Continue to seek out diversity on boards and commissions »Intentionally engage rental communities »Encourage volunteerism and expand volunteer opportunities »Conduct community meetings at alternative locations »Educate the community in the area of emergency preparedness »Identify opportunities to partner with youth, schools, businesses and faith-based organizations »Promote opportunities to raise awareness and understanding of race, equity and diversity »Creatively engage and market the community using technology and unique platforms GOAL SETTING 2018 GOALS: ACTION STEPS Preserve the Home Town Feel of Hopkins Urban Design: Do It Right Take It To Them 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 2017 CAFR will be available to the public upon completion in May 2018 and a summary of the results will be published in the official newspaper. The 2017 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, 2016. 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 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. April-May Meet with Council to set parameters and goals for 2018 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 - August Council work sessions to review budgets September 19 City Council adopts preliminary levy and budget September 20 Proposed 2018 budget and levy certified to Hennepin County September/October Special Revenue & Enterprise budgets presented to Council for review and approval December 5 Budget public hearing and final budget approval and tax levy certification December 6 Final 2018 levy certification to Hennepin County 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 City 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 thereafter 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: o 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 o 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 yearend but the amount can be determined at a later date. o 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. The authority to “assign” fund balance is delegated to the City Finance Director o 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. 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 previously considered. In addition, the resources classified as unassigned can be used to cover expenditures for revenues not yet received. 20 CITY OF HOPKINS • 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. 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 2018. 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. 21 CITY OF HOPKINS • Net Property Tax Cost Median Value Home – This provides information to the council incorporating expected increases in valuation and projecting actual costs on the Median Value Home. 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 each of the City’s general fund programs and demonstrates which city programs are most dependent on taxes. It also provides information to the public on what benefits they receive for their tax dollars. • 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. • 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 city’s 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 2018 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 Employees volunteering at the annual Thanksgiving luncheon for seniors at the City’s Activity Center. Mayor Molly Cummings being sworn in as the new mayor for 2016-2018. General Public Community Community Operating Fund Government Finance Police Fire Works Development Services Recreation General Fund Administration X X X Finance X Community Services X Building Maintenance X X X X Inspections X Police X Fire X Public Works X Recreation X Activity Center X Planning & Zoning X Community Development X Special Revenue Funds Economic Development X Parking X X Communication X Depot Coffee House X Art Center X Enterprise Funds Water X Sewer X Refuse X Storm Sewer X Pavilion X Housing & Redevelopment X Administration of Fund 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 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. The increase in authorized staffing from 2017 to 2018 of 0.75 is due to adding a full-time fire marshal in place of a part-time fire marshal. Other minor changes included shifting responsibilities of various personnel between departments which resulted in staffing count changes in those departments. 2015 2016 2017 2017 2018 Authorized Actual Authorized Administrative Services 5.00 5.05 5.50 5.05 5.50 Finance 4.60 4.00 5.00 5.00 5.00 Municipal Building 1.45 1.45 1.45 1.45 1.45 Community Services 9.68 8.65 7.20 7.20 7.20 Police 35.50 36.78 38.45 36.45 38.45 Fire 1.25 3.25 3.25 3.25 4.00 Public Works 17.09 17.58 18.09 19.09 18.09 Skate Park 0.05 0.05 0.05 0.05 0.05 Activity Center 3.20 3.25 3.20 3.20 3.20 Zoning & Planning 1.35 1.35 1.35 1.35 1.35 Community Development 0.85 1.50 0.85 0.85 0.85 General Fund Total 80.02 82.91 84.39 82.94 85.14 Economic Development 1.60 1.25 1.60 1.60 1.60 Parking 0.72 0.72 0.72 0.72 0.72 Communications 0.25 0.75 1.25 1.25 1.25 Depot Coffee House 5.25 5.25 5.25 5.25 5.25 Art Center 4.30 4.30 4.30 4.30 4.30 Special Revenue Fund Total 12.12 12.27 13.12 13.12 13.12 Water 3.43 2.60 3.43 3.43 3.43 Sanitary Sewer 3.76 3.40 3.76 3.76 3.76 Refuse 3.89 4.09 4.09 4.09 4.09 Storm Sewer 0.63 0.43 0.63 0.63 0.63 Pavilion/Ice Arena 2.90 2.90 2.90 2.90 2.90 Housing & Redevelopment 2.20 2.40 2.40 2.40 2.40 Total Proprietary Funds 16.81 15.82 17.21 17.21 17.21 Total All Funds 108.95 111.00 114.72 113.27 115.47 Authorized & Actual Authorized & Actual 26 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Function General Government X X X X X X X X Public Safety X Health and Welfare X Highways and Streets X Urban Redevelopment and Housing X X Culture and Recreation X X Capital Outlay X X X X X Debt Service X X X X Water X Sewer X Storm Sewer X Storm Sewer Utility General Fund Water Utility Sewer Utility Tax Increment District - Entertainment District Taxable Houing Bonds of 2009B Capital Project Permanent Improvement Revolving Economic Dev Arts Center Major Funds Debt Service EnterpriseSpecial Revenue Special Capital Debt Function Revenue Projects Service Enterprise General Government X X X X Public Safety X Health and Welfare X Highways and Streets X Urban Redevelopment and Housing X Culture and Recreation X Capital Outlay X X Debt Service X Refuse X Non-Major Funds 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 2016 2017 2017 2018 Budget Actual Actual Budget Budget Difference %age REVENUES General Fund 12,295,267$ 13,000,907$ 12,835,312$ 13,435,355$ 600,043$ 4.67% Special Revenue Funds Economic Development Fund 673,454$ 665,539$ 381,200$ 402,037$ 20,837$ 5.47% Arts Center 1,128,656$ 908,733$ 935,734$ 975,626$ 39,892$ 4.26% Non-major Special Revenue Funds 4,329,829$ 3,111,316$ 3,425,849$ 3,415,700$ (10,149)$ -0.30% Capital Project Funds Permanent Improvement Fund 5,701,023$ 1,641,537$ 3,603,842$ 9,957,475$ 6,353,633$ 176.30% Non-major Capital Project Funds 2,522,008$ 1,997,696$ 2,971,893$ 896,120$ (2,075,773)$ -69.85% Debt Funds G.O. TI Bonds of 2015D 7,306,087$ 496,000$ 496,000$ 504,000$ 8,000$ 1.61% G.O. TI Bonds of 2016D 3,741,660$ 3,608,403$ 3,608,403$ 290,000$ (3,318,403)$ -91.96% Non-major Debt Service Funds 12,941,363$ 17,262,779$ 1,508,309$ 5,666,147$ 4,157,838$ 275.66% Enterprise Funds Water Utility Enterprise Fund 1,526,440$ 1,832,277$ 2,209,405$ 2,147,086$ (62,319)$ -2.82% Sewer Utility Enterprise Fund 2,159,368$ 2,688,450$ 2,932,504$ 3,088,299$ 155,795$ 5.31% Storm Sewer Enterprise Fund 885,483$ 844,839$ 810,200$ 810,200$ -$ 0.00% Non-major Enterprise Funds 1,430,853$ 1,484,318$ 1,411,500$ 1,455,500$ 44,000$ 3.12% EXPENDITURES General Fund 12,193,140$ 12,995,235$ 12,835,312$ 13,435,355$ 600,043$ 4.67% Special Revenue Funds Economic Development Fund 704,721$ 560,103$ 210,447$ 245,700$ 35,253$ 16.75% Arts Center 923,926$ 1,088,897$ 1,234,505$ 992,908$ (241,597)$ -19.57% Non-major Special Revenue Funds 2,645,819$ 1,399,200$ 2,737,544$ 2,610,256$ (127,288)$ -4.65% Capital Project Funds Permanent Improvement Fund 7,921,516$ 2,630,973$ 3,898,728$ 9,479,100$ 5,580,372$ 143.13% Non-major Capital Project Funds 1,446,959$ 2,992,500$ 1,653,847$ 1,635,500$ (18,347)$ -1.11% Debt Funds G.O. TI Bonds of 2015D 742,570$ 497,097$ 497,097$ 504,113$ 7,016$ 1.41% G.O. TI Bonds of 2016D 63,129$ 3,751,610$ 3,751,610$ 289,150$ (3,462,460)$ -92.29% Non-major Debt Service Funds 20,331,042$ 20,412,762$ 4,079,577$ 5,056,348$ 976,771$ 23.94% Enterprise Funds Water Utility Enterprise Fund 2,003,003$ 1,789,503$ 1,890,915$ 1,980,810$ 89,895$ 4.75% Sewer Utility Enterprise Fund 2,432,556$ 2,281,378$ 2,670,897$ 2,746,202$ 75,305$ 2.82% Storm Sewer Enterprise Fund 608,470$ 446,735$ 497,049$ 526,942$ 29,893$ 6.01% Non-major Enterprise Funds 1,389,452$ 1,367,431$ 1,409,693$ 1,463,927$ 54,234$ 3.85% Major Funds are in bold type 28 CITY OF HOPKINS Summary of Budgeted Funds 2016 2017 2017 2018 Budget Actual Actual Budget Budget Difference % age REVENUES Property Taxes 9,544,396$ 10,083,560$ 10,366,866$ 10,832,657$ 465,791$ 4.49% Intergovernmental 1,061,205 1,078,945 1,028,426 1,173,933 145,507 14.15% Licenses, Permits & Fines 900,057 1,007,348 700,825 785,465 84,640 12.08% Charges for Services 406,998 323,654 215,650 222,850 7,200 3.34% Miscellaneous 76,276 197,671 233,545 130,450 (103,095) -44.14% Franchise Fees 306,335 309,729 290,000 290,000 - 12,295,267$ 13,000,907$ 12,835,312$ 13,435,355$ 600,043$ 4.67% APPROPRIATIONS Council 90,417$ 87,385$ 82,898$ 103,559$ 20,661$ 24.92% Administrative Services 560,494 661,048 629,648 682,183 52,535 8.34% Finance 324,222 373,600 282,658 284,178 1,520 0.54% Legal 196,904 247,785 150,000 150,000 - Municipal Building 367,667 393,089 346,732 383,229 36,497 10.53% Community Services 1,131,565 1,061,787 1,146,560 1,107,918 (38,642) -3.37% Police 4,739,512 5,218,315 5,095,102 5,103,226 8,124 0.16% Fire 1,174,801 1,055,895 1,176,532 1,239,858 63,326 5.38% Public Works 2,635,037 2,941,661 2,800,935 2,912,055 111,120 3.97% Recreation 569,136 656,129 667,778 682,307 14,529 2.18% Planning 161,331 201,578 246,877 196,774 (50,103) -20.29% Community Development 90,541 95,856 124,820 126,868 2,048 1.64% Unallocated 151,513 1,107 84,772 463,200 378,428 446.41% 12,193,140$ 12,995,235$ 12,835,312$ 13,435,355$ 600,043$ 4.67% 2016 2017 2017 2018 Budget Actual Actual Budget Budget Difference % age REVENUES Chemical Asses. Team 90,780$ 71,563$ 60,000$ 60,000$ -$ Economic Development 673,454 665,539 381,200 402,037 20,837 5.47% Parking 575,755 200,591 144,500 150,500 6,000 4.15% Communication 290,725 289,058 269,200 269,200 - Depot Coffee House 375,196 336,468 348,000 352,000 4,000 1.15% Art Center 1,128,656 908,733 935,734 975,626 39,892 4.26% Tax Incr Financing (7 funds)2,997,373 2,191,089 2,604,149 2,584,000 (20,149) -0.77% 6,131,939$ 4,663,041$ 4,742,783$ 4,793,363$ 50,580$ 1.07% APPROPRIATIONS Chemical Assess. Team 97,088$ 94,353$ 60,000$ 60,000$ -$ Economic Development 704,721 560,103 210,447 245,700 35,253 16.75% Parking 532,242 150,212 110,928 113,529 2,601 2.34% Communication 2,923,456 253,451 289,747 285,566 (4,181) -1.44% Depot Coffee House 368,723 359,878 343,036 367,753 24,717 7.21% Art Center 923,926 1,088,897 1,234,505 992,908 (241,597) -19.57% Tax Incr Financing (7 funds)835,953 541,306 1,933,833 1,783,408 (150,425) -7.78% 6,386,109$ 3,048,200$ 4,182,496$ 3,848,864$ (333,632)$ -7.98% SPECIAL REVENUE FUNDS GENERAL FUND 29 CITY OF HOPKINS 2016 2017 2017 2018 Budget Actual Actual Budget Budget Difference % age REVENUES Water 1,526,440$ 1,832,277$ 2,209,405$ 2,147,086$ (62,319)$ -2.82% Sanitary Sewer 2,159,368 2,688,450 2,932,504 3,088,299 155,795 5.31% Refuse 1,013,134 1,013,994 1,007,400 1,010,500 3,100 0.31% Storm Sewer 885,483 844,839 810,200 810,200 - Pavilion/Ice Arena 417,719 470,324 404,100 445,000 40,900 10.12% 6,002,144$ 6,849,884$ 7,363,609$ 7,501,085$ 137,476$ 1.87% APPROPRIATIONS Water 2,003,003$ 1,789,503$ 1,890,915$ 1,980,810$ 89,895$ 4.75% Sanitary Sewer 2,432,556 2,281,378 2,670,897 2,746,202 75,305 2.82% Refuse 949,173 844,737 948,876 987,379 38,503 4.06% Storm Sewer 608,470 446,735 497,049 526,942 29,893 6.01% Pavilion/Ice Arena 440,279 522,694 460,817 476,548 15,731 3.41% 6,433,481$ 5,885,047$ 6,468,554$ 6,717,881$ 249,327$ 3.85% 2016 2017 2017 2018 Budget Actual Actual Budget Budget Difference % age REVENUES Property Taxes 1,876,459$ 2,042,687$ 2,581,352$ 3,149,223$ 567,871$ 22.00% Special Fees 829,065 897,122 973,952 911,090 (62,862) -6.45% Miscellaneous 475,534 27,969 16,160 16,101 (59) -0.37% Proceeds from Bond Sale 12,310,000 16,425,158 - - - Operating Transfer In 1,191,965 1,478,246 1,545,248 1,879,733 334,485 21.65% 16,683,023$ 20,871,182$ 5,116,712$ 5,956,147$ 839,435$ 16.41% APPROPRIATIONS Bond Principal 3,075,000$ 3,080,000$ 3,080,000$ 3,720,000$ 640,000$ 20.78% Bond Interest 814,199 1,035,605 1,048,639 1,601,498 552,859 52.72% Miscellaneous other charges 425,095 433,500 24,000 24,000 - Deposit to Escrow Agent 7,305,660 3,678,549 3,678,548 - (3,678,548) -100.00% Transfer out 8,765,862 15,936,720 - - - #DIV/0! 20,385,816$ 24,164,374$ 7,831,187$ 5,345,498$ (2,485,689)$ -31.74% Total Revenues 41,112,373 45,385,014 30,058,416 31,685,950 1,627,534 5.41% Total Appropriations 45,398,546 46,092,856 31,317,549 29,347,598 (1,969,951) -6.29% Use of Equity or Fund Balance (4,286,173) (707,842) (1,259,133) 2,338,352 3,597,485 -285.71% DEBT SERVICE FUNDS (all funds) PROPRIETARY FUNDS 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 $29,704,297. The largest source of revenue by category is property taxes of $17,132,611 comprising 57.68% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits have been on again and off again since 2004 and remain off for 2018. 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 2018 budgeted taxes increased in total by 9.86% primarily as a result of new G.O. debt. The General Fund had a 4.53% increase in the levy due to increases in expenditures that were not offset by other revenue sources. Intergovernmental Revenues: Total $1,380,933 or 4.65% of the City’s revenues. The City currently receives highway funding, police and fire aid, chemical assessment grants, PERA aid, fire grants, Community Development Block Grant funds and other miscellaneous state grants. Estimates for intergovernmental revenues are based on known revenue sources and projections are based on information from the various state and county agencies from which the revenues are received. The city has reduced its reliance on revenues from state and federal governments due to decreased 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 2018 we are scheduled to receive $549,019 in Local Government Aid, a $125,125 increase from 2017 that will go to the General Fund and is utilized to reduce the general fund tax levy. 31 CITY OF HOPKINS Utility Fees: For water, sewer, refuse and storm sewer account for $6,843,384 of the City’s revenue or 23.04%. The will increase rates over the next 4 years based on a rate study conducted in 2016. The increased rates will provide adequate cash flow for operating and capital cost. The water and sewer rates were both increased by approximately 40% in 2017, the first year using the rate study. 2018 will see more modest increases of 6.7% and 5.3% for water and sewer, respectively. The rate study will be continually evaluated and rates adjusted as needed. The Storm Sewer and Refuse funds remain healthy and will not have rate increases in 2018. Charges for Services: Other than utilities are $2,010,654 or 6.77% 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 $911,900 or 3.07% 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. 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 2018 due to a larger street project completed in 2017 with first assessment due in 2018. 32 CITY OF HOPKINS Permits, Licenses and Fines: are $801,065 or 2.70% of revenues. Permit revenues are dependent on the economy and on future development of the City. In 2017 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 2018 will be about $553,000 or 1.86% 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. The City received cable franchise fees for public, education and government (PEG) programming in 2017. W hile we anticipate receiving PEG fees in 2018 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 2017 Actual Revenues: Increased from 2016 as a result of increased tax revenues and miscellaneous revenues from implementing the 5-year utility rate plan. The 2018 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: The chart to the right is 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 remained steady over the last several years; we have continued to be 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 our budget needs which include grants. Utility charges have increased as a result of the implementation of the 5-year utility rate study to help the city meet the needs of the aging infrastructure. Shown below is a chart showing the relationship between all revenue sources. 34 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $29,347,598. This is less than anticipated revenues for 2018 and results in an increase of fund balance of $2,338,352 overall. 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 $12,196,489. Employee salary and benefits make up 41.56% of the City’s annual appropriation and represent a 3.62% increase from 2017 budget. At the time of budget adoption the City was completing a classification and compensation study on all employees. All union contracts expired on 12/31/17 and new contracts were not in place at the time of budget adoption. The 2018 budget includes estimates for new wage rates for all employees and will be adjusted based on the final results of the study and employment contracts. Materials, supplies and services make up 28.10% of appropriations at $8,246,049. This amount represents a 2.45% increase from 2017 budget. The increase is mainly due to the effect of inflation. Capital outlay and improvements can fluctuate substantially every year. In 2018, the appropriated amount is $218,300 or 0.74% of total appropriations. Anticipated capital costs are remodeling and furnishings at City Hall; equipment washer and dryers for the Fire Department and; technology upgrades City Wide. 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 2018 decreased 31.74% because of a large refunding issuance paid off in 2017. Actual budgeted principal and interest appropriations increased by $1,205,893 or $28.89%, due to large bond issuances from 2016 becoming due. The six largest programs of the City in 2018 account for 92% of the appropriations budget and are as follows: Debt Service 5.3 million Public Safety 6.4 million Utilities (water, sewer, storm sewer, refuse) 6.2 million General Government 3.5 million Public Works 3.0 million Recreation 2.5 million 35 CITY OF HOPKINS 36 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2015 2016 2017 2018 SOURCE ACTUAL ACTUAL ACTUAL BUDGET Current Revenues PROPERTY TAX $11,167,907 $11,609,767 $12,819,047 $14,564,111 TAX INCREMENT 2,920,681 2,957,307 2,146,982 2,568,500 SPECIAL ASSESSMENTS 828,529 829,065 897,122 911,090 LICENSE, PERMITS & FINES 722,558 728,667 1,028,503 801,065 INTERGOVERNMENTAL REVENUE 1,432,343 1,384,403 1,323,036 1,380,933 CHARGES FOR CURRENT SERVICES 1,530,160 1,552,181 1,692,897 1,583,956 INTEREST ON INVESTMENTS 197,346 162,465 159,241 71,560 UTILITY SERVICE CHARGES 5,254,110 5,079,822 6,120,600 6,843,384 FRANCHISE FEES 566,756 573,495 584,214 553,000 OTHER REVENUES 764,431 1,233,860 608,048 426,698 TOTAL CURRENT REVENUES $25,384,821 $26,111,032 $27,379,690 $29,704,297 Other Financing Sources 18,735,000 12,310,000 16,425,158 - TOTAL REVENUES $44,119,821 $38,421,032 $43,804,848 $29,704,297 Add: Inter-Fund Transfers 875,038 2,691,341 1,580,166 1,981,653 TOTAL REVENUES $44,994,859 $41,112,373 $45,385,014 $31,685,950 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECT ADOPTED 2015 2016 2017 2018 OBJECTIVE ACTUAL ACTUAL ACTUAL BUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS $11,115,039 $11,373,161 $12,199,849 $12,301,377 MATERIALS, SUPPLIES AND SERVICES 6,892,930 8,248,402 8,129,360 8,351,624 CAPITAL OUTLAY 120,254 596,793 410,315 244,800 DEPRECIATION 779,685 775,000 892,027 775,000 DEBT REPAYMENT 13,851,161 11,773,916 8,378,307 5,937,267 TOTAL $32,759,069 $32,767,272 $30,009,858 $27,610,068 Other Financing Uses 7,646,627 10,527,986 16,082,996 1,737,530 TOTAL EXPENDITURES $40,405,696 $43,295,258 $46,092,854 $29,347,598 37 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2008 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. Since 2014, Hopkins continued to have growth due to commercial development that was already in place when the market turned and a recovering housing market. A luxury apartment complex was under construction on the 2017 assessment date and completed during 2017, it will add approximately $63 million in value in 2018. 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 $414,000. Other property classes primarily commercial have increased slightly which has mitigated the overall decrease in market values. 38 CITY OF HOPKINS Changes in property taxes The chart at the left shows the percentage of homeowners that saw changes in property taxes paid to the City. About 7.80% saw decreases in their property taxes, however, a much greater percentage 92.2% had between .1% - to over 20% increases in values, this is due to the increasing market value of homes and an increase in the City’s tax levy. 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 2017 is valued at $243,000. Total taxes of $3,380 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 Shown to the left is the annual cost of CITY 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 2018 FMP provides for additional debt levies to fund much needed infrastructure projects within the City. 39 CITY OF HOPKINS This residential property owner in Hopkins will experience a $150 increase in City property taxes in 2018. The total City taxes on a median valued home would be $1,446 in 2018 as compared to $1,296 in 2017. 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 2018 as based on the City’s Utility Rate Plan and continued capital costs. 2018 will be the second year the City used a tiered rate structure. 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 2018. The storm sewer rate is not expected to increase in the near future. Hopkins utility rates continue to rank in the middle tier of the Minneapolis/St. Paul metropolitan area despite the rate increases. City Levy – By Purpose In 2018 the City continued its property tax levy for the purpose of funding the debt for the construction of Burnes Park, 8th Avenue Artery and portions of Blake Road. In 2017 levy limits were once again eliminated and remain off for 2018. City tax capacity rates of 65.950% result in payments of $1,446 annually or approximately $121 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 2018 2017 General Fund $10,747,657 $10,281,666 4.53% increase Debt $3,149,223 $2,103,366 49.72% increase Arts Center $250,000 $250,000 0.00% increase Capital $75,000 $310,000 -75.81% increase Total Levy $14,221,880 $12,945,032 9.86% increase Council $9.86 Administrative Services $64.98 F inance $25.65 Legal $2.38 Unallocated $44.12 Municipal Building $36.50 Community Services $51.25 Police $436.87 Fire $106.44 Public Works $257.89 Recreation $24.99 Activity Center $32.23 Planning and Community Development $21.92 Capital $7.14 Arts Center $23.81 Debt $299.95 Annual Cost for City Services $1,446.00 2018 Annual Property Tax Cost (average home)Annual Service Cost City of Hopkins Average Annual Service Costs on an Average Home. 2018 2017 City Property Taxes $1,446.00 $1,296.00 Water - Consumption 7,500 gallons a month $2.60/$3.00/$3.45 Tiered Rates $299.71 $2.44/$2.81/$3.23 Tiered Rates $280.92 Sewer - Consumption 7,500 gallons a month $6.12/ 1,000 gallons $550.80 $5.81/ 1,000 gallons $522.90 Refuse Collection $262.20 $262.20 Storm Sewer $60.00 $60.00 Franchise Fees $52.80 $52.80 Total $2,671.51 $2,474.82 40 CITY OF HOPKINS Net annual property tax costs for program budgets The City’s overall net levy increase is 9.86%. The general fund levy increased in 2018 by 4.53% or $465,991. The debt levy was increased due to a Burnes Park, 8th Avenue Artery and portions of Blake Road. The debt levy increase was 49.72% or $1,047,857. The capital levy was decreased to $75,000 because of fewer anticipated projects in 2018. The Arts Center levy remained at $250,000. The Arts Center Levy was implemented to provide operational funds for this facility as it looks to improve its sustainability. The total levy increase for 2017 is $1,276,848. The increased taxes caused the tax rate to increase by 3.42% from 63.078% to 66.342% Recreation $59.53 Streets & Park Maintenance $268.28 Debt $299.95 Council & Administration $107.02 Building Maintenance $37.97 Arts Center $24.77 Planning & Zoning $22.80 Assessing, Inspections & City Clerk $60.46 Fire Protection $110.73 Police Protection $454.49 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 Shown to the left are the main taxpayers in the City of Hopkins and their percentage of total tax capacity. The largest taxpayer comprises 7.21% of total tax capacity and the next largest taxpayer comprises 4.31%. The city has a diverse and stable tax base, which provides the city with assurance that tax revenues will remain stable against the loss of a significant taxpayer. 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. PRINCIPAL EMPLOYERS Percentage of Total Taxpayer Type of Business Employees Employment Colfin Midwest NNN INV LLC Food, agricultural, financial and industri 4,000 26.274 % ISD 270 Hopkins School 1,041 4.644 % SuperValu Grocery distributor 707 6.838 % Thermotech Plastic mold manufacturer 400 2.627 % US Post Office Post Office 314 2.063 % Oak Ridge Country Club County/Golf Club 185 1.215 % Augustana Chapel View Care Center Health Care Services 185 1.215 % US Bank Financial Institution 185 1.215 % City of Hopkins Municipal Government 144 0.946 % Walser Chrysler Dodge Jeep Ram Automotive Dealership 100 0.657 % Taxpayer Type of Business Tax Capacity Percentage of Total Tax Capacity Colfin Midwest NNN Inv LLC Real Estate 1,754,120 7.21% Super Valu Grocery Warehouses 1,047,910 4.31% Hines Globel Reit 9320 Excel Management Services 891,430 3.66% Ramsgate Apartments LLC Apartments 292,813 1.20% Southwest Real Estate, Inc.Apartments 264,848 1.09% The Luther Co Ltd Ptnrshp Car Dealership 256,120 1.05% Duke Realty Corporation Office/Warehouses 243,990 1.00% Greenfield Apartments Apartments 227,700 0.94% Westside Property Owner, LLC Apartments 227,250 0.93% City Center Ventures, LLC Real Estate 226,580 0.93% City's Total Tax Capacity 24,337,428 PRINCIPAL TAXPAYERS 42 CITY OF HOPKINS The general fund added approximately $5,000 to its fund balance in 2017. 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 far exceeded the budget and added to the fund balance. The 2018 budget was adopted with 3% wage increase and an additional contingency line item for employee contracts that are not currently settled. The general fund is on target with its fund balance goal of 42% of prior year’s expenditures and is at 44% 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 2017 tax revenue collections were over budget as excess tax increment revenues were received. These are revenues over and above what is required in the tax increment plans and therefore are reported in the Economic Development fund to be used for future development. The Economic Development fund provides the funding to assist in development efforts in Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is a development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The 2018 budget will add about $156,000 to fund balance as a continued effort to provide funding for future development incentives. Estimated YE 2017 Fund Balance/% Change $ Change Reason for Working Ending in Fund in Fund Greater than Fund Name Capital*Revenues Expenditures Balance Balance Balance 10% Variance Major Funds General Fund $5,871,566 $13,435,355 $13,435,355 $5,871,566 0.00% $0 Economic Development Special Revenue Fund 4,761,596 402,037 245,700 4,917,933 3.28% 156,337 Planned increase from tax revenues and excess TIF will be used for future development. Art Center (1,177,204) 975,626 992,908 (1,194,486) -1.47% (17,282) Permanent Improvement Revolving Fund 287,536 9,957,475 9,479,100 765,911 166.37% 478,375 Street reconstruction projects for 2018 are scheduled. Bonds will be sold to finance this project. G.O. Tax Increment Bonds of 2015D 147,656 504,000 504,113 147,543 -0.08% (113) G.O. Tax Increment Bonds of 2016D (1,367) 290,000 289,150 (517) -62.18% 850 Water Enterprise Fund * (867,508) 2,147,086 1,885,810 (606,232) -30.12% 261,276 Sewer Enterprise Fund * 333,274 2,932,926 2,641,863 624,337 87.33% 291,063 Storm Sewer Enterprise Fund * 982,947 811,829 414,942 1,379,834 40.38% 396,887 Bonds will be sold in 2018 for the planned infastructure projects. Water and Sewer rates were increased in 2018 to continue to improve financial stability of funds and pay for capital costs. 43 CITY OF HOPKINS The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid-1990’s. The Art Center has long-term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives supporting transfers from the Communication fund. In 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, including an outdoor concert series in 2018. 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 2024. The Permanent Improvement Revolving Fund will increase its fund balance in 2018. Bonds will be issued for the reconstruction of Blake Road, a two year project, and a portion of the proceeds will not be spent until 2019. The GO Tax Increment Bonds of 2015D and 2016D continue to be able to fund debt service requirements. The Water Enterprise Fund’s working capital continues to increase because of a 6.7% increase consumption and flat rates. A water rate study was first implemented in 2016 to address the growing capital and replacement costs in the fund. The fund will continue to see incremental increases to rates each year. The Sewer Enterprise Fund’s working capital is expected to grow in 2017 as a result of an incremental rate increase. A sewer rate study was first implemented in 2016 to address the growing capital and replacement costs in the fund, however fees paid to the Metropolitan Council represent over half of the costs in the sewer budget. Sewer charges paid to the Metropolitan Council saw less than a 1% increase in 2018 The Storm Sewer Enterprise Fund’s working capital will increase in 2018 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 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 2017 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 5% each year to provide adequate funds to maintain the parking lots and cover operations. The Communication fund continues to support the advertising and promotion of the Art Center by transferring $86,920 annually to the Arts Center. The 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. Estimated YE 2017 Fund Balance/% Change $ Change Reason for Working Ending in Fund in Fund Greater than Fund Name Capital*Revenues Expenditures Balance Balance Balance 10% Variance Chemical Assessment 0 60,000 60,000 0 0.00%0 Parking 200,240 150,500 113,529 237,211 18.46% 36,971 Increased rental revenue for permited parking s paces will provided needed funding for operations and future improvements. Communications 527,400 269,200 285,566 511,034 -3.10% (16,366) Depot Coffee House (31,706) 352,000 367,753 (47,459) 49.68% (15,753)Coffee shop operations were evaluated and c hanges made so that this fund can build fund equity for future projects. Tax Increment Funds (aggregate) 1,591,018 2,584,000 1,783,408 2,391,610 50.32% 800,592 Funds collected are replenishing negative fund balance as the districts tax collections increase Debt Service Funds (aggregate) 1,685,617 5,956,147 5,345,498 2,296,266 36.23% 610,649 Planned use of fund balance to reduce tax l evy Enterprise Refuse *956,100 1,007,400 948,876 1,014,624 6.12% 58,524 Pavilion *(70,325) 440,897 496,548 (125,976) -79.13% (55,651)Bonds will be sold to cover capital ex penditures for this facility. Non-Major Funds Special Revenue Funds 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), Three Rivers Park District ($15,000) and Hopkins School District ($50,000). The coffee shop portion of the Youth Center has historically been a successful venture of the Depot and able to provide funding for the youth project. The coffee shop was unable to be profitable in 2017 due nearby construction projects. The operating results are expected to rebound in 2018. 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. 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 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 2018. Working capital continues to be adequate for this operation. The Pavilion Ice Arena will show a net loss in 2017 due to needed building projects; staff continues to actively market 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 2018 and the facility was able rent out a portion of the building to the Hopkins School District during underutilized times. The Pavilion has an outdated refrigeration system that will be replaced in 2018 along with other upgrades. The Hopkins School District and Hopkins Youth Hockey Association have both partnered with the City and each contributed $1,000,000. The City will contribute the remaining costs of $3,700,000 for the project, $600,000 in cash from the Park Improvement fund and $3,100,000 in bonding. The City will levy to pay bond costs beginning in 2019. 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 two bonds issued in 2017. 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, 2017, was $64,365,000. After reducing the outstanding debt by the amount supported by utilities and special fee the per capita debt at December 31, 2017 is $1,976. The total debt principal and interest due in 2017 is $6,040,992,609, of which $3,149,223 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 $3,044,890 in 2030 and to $193,040 in 2034 before the final issue matures in 2036. The ability to retire 76% 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 2018 street improvements, Tax Abatement Bonds for Pavilion Ice Arena Upgrades and Equipment Certificates. The actual amount to be bonded is estimated at $9,800,000 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 2018 through 2036. OUTSTANDING DEBT AND PURPOSE 2017A GO Improvement Bonds Street Improvements $11,795,000.00 2017B GO Tax Abatement Bonds Parks and Water & Sewer Improvements $ 3,170,000.00 2016A GO Improvement Bonds Street Improvements $ 4,335,000.00 2016B GO Tax Abatement Parks and Municipal Parking Ramp $ 1,630,000.00 2016C GO Bonds Equipment Certificates & Water Revenue Bonds $ 2,805,000.00 2016D GO Tax Increment Revenue Refunding Bonds Refunding of 2009 HRA Tax Increment Revenue Bonds $ 3,540,000.00 2015A GO Street Reconstruction Bonds Street Improvements $ 3,865,000.00 2015B GO Tax Abatement Cottageville Park and Parking Lot Improvements $ 2,825,000.00 2015C GO Tax Increment Revenue Refunding Bonds Refunding of 2008 HRA Tax Increment Revenue Bonds $ 3,945,000.00 2015D GO Tax Increment Revenue Refunding Bonds Refunding of 2007 HRA Tax Increment Revenue Bonds $ 6,750,000.00 2014A GO Improvement Bonds Street Improvements $ 1,675,000.00 2014B GO Refunding Bonds Refund the 2007A and 2007B Bonds $ 4,595,000.00 2013A GO Improvement Bonds Street Improvements $ 3,005,000.00 2012A GO Capital Improvement Plan Bonds Police Station Expansion and Remodeling $ 1,080,000.00 2012B GO Bonds Street Improvements and Equipment Purchases $ 3,915,000.00 2010A GO Improvement Bonds Street Improvements $ 1,720,000.00 2010B GO Refunding Bonds County Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A) $ 1,470,000.00 2009A GO Revenue Bonds Water & Sewer Improvements and Refunding of 2000 Water and 1999C Storm Sewer Bonds $ 1,085,000.00 2009B GO Taxable Housing Improvement Refunding Refunding 1999A & 1999B Housing Improvement Bonds $ 1,160,000.00 Total Outstanding Debt December 31, 2017 64,365,000$ Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $1,828,358,805 in 2017. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $54,850,764; projected debt subject to the legal limit for Hopkins is $41,820,000 or 76% of total debt limit allowed. 47 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS Principal Interest Principal Interest Principal Interest Principal Interest 2018 4,340,000 1,700,992 940,000 356,978 620,000 171,428 395,000 99,494 2019 5,050,000 1,561,958 1,015,000 335,053 635,000 158,646 405,000 89,563 2020 5,185,000 1,432,021 1,060,000 311,318 645,000 145,188 410,000 78,951 2021 5,345,000 1,295,291 1,115,000 286,105 660,000 130,460 425,000 67,561 2022 5,150,000 1,160,292 1,165,000 259,378 645,000 114,840 425,000 55,781 2023 5,225,000 1,027,879 1,230,000 229,933 665,000 98,965 430,000 43,729 2024 4,115,000 904,531 1,090,000 201,013 680,000 82,485 345,000 32,696 2025 4,400,000 788,837 1,295,000 171,644 700,000 65,360 355,000 22,696 2026 4,390,000 670,452 1,350,000 139,844 720,000 47,505 205,000 15,546 2027 4,100,000 556,307 1,410,000 107,450 520,000 32,284 225,000 11,106 2028 4,225,000 441,474 1,470,000 72,744 535,000 19,506 225,000 6,045 2029 4,020,000 323,631 1,540,000 35,031 290,000 8,766 135,000 1,688 2030 2,825,000 219,890 555,000 7,631 150,000 2,344 - - 2031 2,185,000 143,833 - - - - - - 2032 1,850,000 86,313 - - - - - - 2033 1,410,000 38,750 - - - - - - 2034 180,000 14,720 - - - - - - 2035 180,000 8,960 - - - - - - 2036 190,000 3,040 64,365,000$ 12,379,170$ 15,235,000$ 2,514,119$ 7,465,000$ 1,077,776$ 3,980,000$ 524,856$ Revenue BondsTotalSpecial Assmnt BondsTax Increment Bonds Certificate from our last bond rating upgrade in 2014 which was to AA+. Principal Interest Principal Interest 2018 270,000 46,728 2,115,000 1,026,365 2019 285,000 34,720 2,710,000 943,976 2020 295,000 21,665 2,775,000 874,900 2021 310,000 7,440 2,835,000 803,725 2022 - - 2,915,000 730,294 2023 - - 2,900,000 655,253 2024 - - 2,000,000 588,338 2025 - - 2,050,000 529,138 2026 - - 2,115,000 467,558 2027 - - 1,945,000 405,466 2028 - - 1,995,000 343,179 2029 - - 2,055,000 278,146 2030 - - 2,120,000 209,915 2031 - - 2,185,000 143,833 2032 - - 1,850,000 86,313 2033 - - 1,410,000 38,750 2034 - - 180,000 14,720 2035 - - 180,000 8,960 2036 - - 190,000 3,040 1,160,000$ 110,553$ 36,525,000$ 8,151,866$ G.O BondsHousing Fee Bonds 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 Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2018 4,340,000 1,700,992 155,000 65,980 105,000 38,347 115,000 22,985 20,000 1,800 395,000 99,494 2019 5,050,000 1,561,958 209,319 79,860 123,451 39,840 122,230 22,313 20,000 1,400 405,000 89,563 2020 5,185,000 1,432,021 213,199 74,624 124,412 35,877 127,389 18,500 20,000 1,000 410,000 78,951 2021 5,345,000 1,295,291 227,079 67,996 130,373 31,601 127,549 15,414 20,000 600 425,000 67,561 2022 5,150,000 1,160,292 227,079 60,963 130,373 27,186 127,549 12,282 20,000 200 425,000 55,781 2023 5,225,000 1,027,879 240,959 53,830 141,333 22,621 132,708 8,928 - - 430,000 43,729 2024 4,115,000 904,531 244,839 46,391 142,294 17,868 47,867 6,687 - - 345,000 32,696 2025 4,400,000 788,837 249,839 38,698 147,294 21,976 47,867 (3,328) - - 355,000 22,696 2026 4,390,000 670,452 188,719 32,254 63,255 9,684 48,026 4,658 - - 205,000 15,546 2027 4,100,000 556,307 197,598 26,881 69,216 7,973 58,186 3,503 - - 225,000 11,106 2028 4,225,000 441,474 197,598 21,084 69,216 6,070 58,186 2,141 - - 225,000 6,045 2029 4,020,000 323,631 146,478 15,750 60,177 4,199 33,345 989 - - 135,000 1,688 2030 2,825,000 219,890 85,358 11,679 21,137 2,892 3,504 479 - - - - 2031 2,185,000 143,833 89,238 8,264 22,098 2,046 3,664 339 - - - - 2032 1,850,000 86,313 93,118 5,587 23,059 1,384 3,823 229 - - - - 2033 1,410,000 38,750 93,118 2,794 23,059 692 3,823 115 - - - - 2034 180,000 14,720 - - - - - - - - - - 2035 180,000 8,960 - - - - - - - - - - 2036 190,000 3,040 - - - - - - - - - - 64,365,000$ 12,379,170$ 2,858,538$ 612,635$ 1,395,746$ 270,254$ 1,060,716$ 116,235$ 100,000$ 5,000$ 3,980,000$ 524,856$ Water Fund Bonds Storm Sewer BondsSewer Fund Bonds Nonmajor Enterprise Major Enterprise Fund Bonds Total - All Funds Total Enterprise Funds Principal Interest Principal Interest Principal Interest Principal Interest 2018 350,000 154,112 200,000 89,150 3,595,000 1,447,386 3,945,000 1,601,498 2019 370,000 146,912 235,000 82,625 4,275,000 1,325,483 4,645,000 1,472,395 2020 390,000 139,312 250,000 75,350 4,385,000 1,213,758 4,775,000 1,353,070 2021 415,000 131,262 260,000 67,700 4,505,000 1,096,468 4,920,000 1,227,730 2022 430,000 122,812 275,000 59,675 4,295,000 981,699 4,725,000 1,104,511 2023 455,000 112,825 290,000 51,200 4,340,000 871,325 4,795,000 984,150 2024 475,000 102,388 305,000 42,275 3,295,000 769,447 3,770,000 871,835 2025 655,000 90,269 320,000 32,900 3,390,000 675,872 4,045,000 766,141 2026 685,000 74,339 330,000 24,800 3,500,000 580,567 4,185,000 654,906 2027 715,000 56,839 345,000 18,050 3,160,000 488,362 3,875,000 545,201 2028 750,000 38,525 355,000 11,050 3,250,000 396,904 4,000,000 435,429 2029 780,000 18,425 375,000 3,750 3,105,000 303,518 3,885,000 321,943 2030 280,000 3,850 - - 2,545,000 216,040 2,825,000 219,890 2031 - - - - 2,185,000 143,833 2,185,000 143,833 2032 - - - - 1,850,000 86,313 1,850,000 86,313 2033 - - - - 1,410,000 38,750 1,410,000 38,750 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 6,750,000$ 1,191,870$ 3,540,000$ 558,525$ 53,635,000$ 10,662,444$ 60,385,000$ 11,854,314$ Non-Major Funds - Aggregate Total Debt Service FundGO TI Rev. Bonds of 2015D Major Debt Service Funds Debt Service Fund BondsGO TI Rev. Bonds of 2016D 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. 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. 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. 50 CITY OF HOPKINS 2018 Capital Improvement Projects Building Improvements The Hopkins Center for the Arts built in 1997 has been upgrading and enhancing the facility that is approaching 20 years old. 2017 saw a multitude of enhancement projects totaling over $300,000. The facility has one project planned for 2018, to replace the lobby carpet. The 2018 project will continue to enhance the facility and be a noticeable improvement for all patrons at the facility. The Activity Center, a facility for senior programming will replace several sections of aging roofs that were last replaced between 1989 and 1992. There are plans to upgrade several older windows to become more energy efficient. The Council Chambers continues with its technology improvements in 2018 a new sound system will be installed. There are no operational savings to this project; however the current system is dated and have no volume control. The Pavilion Ice Arena built in 1990 is scheduled to replace the R22 direct ice refrigeration system because of regulations requiring ozone-friendly refrigerant. In 2017 the City worked with two outside groups to coordinate funding for additional features, including remodeled and enlarged locker room space; outdoor rink ice resurfacer garage; shower rooms; expanded lobby; and restroom and lobby floor improvement. The project will also replace a warming house used for outdoor hockey in the winter months. The total project will cost $5,700,000. The city will fund $3,700,000 of the project, with $600,000 coming from the Park Improvement Fund (for the warming house) and bonds for the remaining $3,100,000 to be paid by tax levy. The Hopkins Youth Hockey Association and Hopkins School District will each contribute $1,000,000 for the project. The Police Station and Fire Hall will have kitchen improvements and a new apparatus floor finish, respectively. Parks – Several parks will see needed improvements in 2018. Park Valley Park will get new play equipment. Burnes Park and Oakes Park will both get resurfaced tennis courts. Elmo Park will get new play equipment for 2 – 5 year olds. Central Park will see a new amenity in Hopkins, Pickle Ball Courts. Shady Oak Beach, a facility shared with the City of Minnetonka will get preventative interior and exterior building maintenance, interior and exterior lighting upgrades and irrigation improvements. 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 2018 the City anticipates spending approximately $11,894,900 on street improvements that also include water, sewer and storm sewer infrastructure improvements. The largest projects are the 2018 street reconstruction project at $3.6 million, and Blake Road corridor improvements at $7.9 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 2018 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 $5,000-10,000 annually. 51 CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2018 The projects described above and on the previous page are planned for 2018. 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. Project Title Investment Project Description Activity Center $105,000 Replace Gymnasium Roof Activity Center $80,000 Replace Raspberry Room Roof Activity Center $80,000 Replace Lower Roof Activity Center $75,000 W indow Upgrade Arts Center $52,000 Replace Lobby Carpet Technology Improvement $15,000 Council Chambers and Studio Fire Department $28,500 Replace Carpet and Apparatus Floor Finish Pavilion Ice Arena $35,000 Restroom/Lobby Floor Improvement Pavilion Ice Arena $65,000 Overhead Door Replacement Pavilion Ice Arena $75,000 S kate Tile Replacement Pavilion Ice Arena $4,400,000 Regrigeration Equipment & Arena Floor Replacement Pavilion Ice Arena $25,000 E ntry and Lobby Door Replacement Pavilion Ice Arena $28,000 P aint Exterior Building Pavilion Ice Arena $48,000 P aint Ceiling and Bar Joist Police Department $15,000 K itchen Improvements Parks - Park Valley $100,000 P lay Equipment Parks - Burnes Park $20,000 Resurface Tennis Courts Parks - Oakes Park $20,000 Resurface Tennis Courts Parks - Pavilion Addition/Warming House $600,000 Add Warming House to current Pavilion Arena Parks - Elmo Park $75,000 P lay Equipment Parks - Central Park $300,000 P ickleball Courts Parks - Shady Oak Beach $75,000 Monument Sign Residential Street Improvements $3,600,000 2018 Residential Street Improvement Project Pedestrian & Bike Improvements $25,000 P ainting Bike Lanes, Constructing Trails and Sidewalks Blake Road Corridor Improvements $7,949,900 Reconstruct Blake Road from Excelsior Boulevard to Highway 7 (two year project) Street Overlay Improvements $300,000 Various streets as identified in the street management plan Street Sign Management $20,000 Replace Aged Regulatory and Warning Signs Transporttion $620,000 E nhancements to 3 Light Rail Transit Stations Sewer $21,000 A lley Repairs Storm Drainage $50,000 S ewer Lining TOTAL $18,902,400 52 CITY OF HOPKINS Equipment Replacement Plan 2018 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 $1.03 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 Title Investment Project Description Arts Center $47,000 Surveillance System Technology Upgrades $22,000 City Hall Network Server Technology Upgrades $30,000 Staff Computers Technology Upgrades $17,000 Core Network Switch Technology Upgrades $6,000 Wi-Fi and Cellular Upgrades Technology Upgrades $22,000 Police Department Network Server Fire - Aerial Truck $54,217 Lease Payment on Aerial Truck Finance in 2008 Police Patrol Vehicles $147,000 Marked Patrol Vehicles used by Police Officers Police Sergeant Vehicle $49,000 Marked Patrol Vehicle used by Sergeants Police 4x4 Utility Vehicle $55,000 Marked Patrol Vehicle used by Parking Enforcement Tactical Vests & Helmets $55,000 Replace 12 Tactical Vests and Helmets used by SWAT Team Taser Replacement $35,000 Replacement of Tasers on a 5 year cycle Technology Upgrades $115,000 Police Department Video Data Server Public Works Building & Equipment Services $36,000 4x4 3/4 Ton Truck Public Works Building & Equipment Services $25,000 Forklift Public Works Parks/Forestry $63,300 Toolcat Public Works Streets $54,600 4x2 1 Ton Dump Truck Public Works Streets $235,000 Tandem Dump Truck Refuse $95,000 Swap Loader TOTAL $1,163,117 53 CITY OF HOPKINS 2018 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 Fund. 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 Fund. 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 2018. Total budgeted capital items from all funding sources totals $20,094,317 for 2017. PROJECT TITLE General Fund City Hall $10,000 City Hall $8,000 Fire Department $10,800 TOTAL $28,800 Replace Lunchroom Seats and Furniture Reconfigure Community Development and Inspections Departments Equipment Washer and Dryer Items in the City’s Equipment Replacement Plan include a jet vactor used by the sewer department and a telesquirt fire truck. 54 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS 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 2018 through 2022 is projected to be 4.39%, which the City Council feels is acceptable given the current economic situation. This projection reflects an appropriation increase of 4.53%% for 2018 and an average increase for years 2018-2022 of 3.92%%. 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 uses a conservative estimate for state support while budgeting. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. Due to recent economic development Hopkins saw taxable market value increase by 6.33% in the current tax year. 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. Approved 2017 2018 2019 2020 2021 2022 Projected Budget Budget Budget Budget Budget Current Revenues Property Tax 10,083,560$ 10,832,657$ 11,568,090$ 12,101,381$ 12,378,236$ 12,951,081$ Intergovernmental Revenues 1,078,945 1,173,933 1,152,759 1,137,471 1,143,845 1,150,284 License, Permits and Fines 1,007,348 785,465 793,118 801,048 809,060 817,149 Charges for Current Services 323,654 222,850 225,079 227,329 229,603 231,899 Other Revenue 197,671 130,450 131,605 132,771 133,948 135,138 Franchise Fee 309,729 290,000 290,000 290,000 290,000 290,000 Total Revenues 13,000,907 13,435,355 14,160,651 14,690,000 14,984,692 15,575,551 Current Expenses Salaries and Employee Benefi 9,711,631 9,765,510 10,401,214 10,818,381 11,088,840 11,421,506 Materials, Supplies and Servic 3,238,270 3,588,045 3,739,436 3,851,619 3,875,852 4,134,045 Capital outlay 30,334 66,800 - - - - Transfer Out 15,000 15,000 20,000 20,000 20,000 20,000 Total Expenditures 12,995,235 13,435,355 14,160,651 14,690,000 14,984,692 15,575,551 Change in Fund Balance 5,672 - - - - - Fund Balance 5,643,075$ 5,643,075$ 5,643,075$ 5,643,075$ 5,643,075$ 5,643,075$ Projected 55 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 $500,000 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 2018. Licenses, permits and fines include building permits are dependent on new construction and remodeling projects. Based on projected new construction projects, historical information and economic conditions revenues are expected to increase significantly for 2018 from the 2017 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 2017 were from commercial re-development projects and apartments. 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 2018 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 $13,435,355 and an appropriation budget of the same. The increase in appropriations over 2017 is $600,043 or 4.67%. The budget was prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2018, the budget was prepared with 1.0 new FTE staffing; 1 full-time fire marshal; a 3% wage increase for all employee groups, a contingency budget for unsettled employee contracts, , 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 2018 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 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 2018 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. 56 CITY OF HOPKINS The chart above shows 2017 actual expenditures along with the 2018 approved budget and projected budgets from 2019 through 2022. 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. 57 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department 2018 Mayor & Council Katy Campbell, Jason Gadd, Mayor Molly Cummings, Kristi Halverson, Aaron Kuznia Budget 2016 2017 2017 2018 Actual Actual Budget Budget Change Council $ 90,417 $ 87,385 $ 82,898 $ 103,559 $ 20,661 24.92% Administrative Services 560,494 661,048 629,648 682,183 52,535 8.34% Finance 324,222 373,600 282,658 284,178 1,520 0.54% Legal 196,904 247,785 150,000 150,000 - 0.00% Municipal Building 367,667 393,089 346,732 383,229 36,497 10.53% Community Services 1,131,565 1,061,787 1,146,560 1,107,918 (38,642) -3.37% Police 4,739,512 5,218,315 5,095,102 5,103,226 8,124 0.16% Fire 1,174,801 1,055,895 1,176,532 1,239,858 63,326 5.38% Public Works 2,635,037 2,941,661 2,800,935 2,912,055 111,120 3.97% Recreation 569,136 656,129 667,778 682,307 14,529 2.18% Planning & Economic Dev. 161,331 201,578 246,877 196,774 (50,103) -20.29% Community Development 90,541 95,856 124,820 126,868 2,048 1.64% Unallocated 151,513 1,107 84,772 463,200 378,428 446.41% TOTAL $12,193,140 $12,995,235 $12,835,312 $13,435,355 $ 600,043 4.47% $ Amount Change 58 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 Enterprise Funds – Water, Sewer, Storm Sewer 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. Economic Development Fund Approved 2017 2018 2019 2020 2021 2022 Actual Budget Budget Budget Budget Budget Current Revenues Property Tax 449,135$ 332,031$ 338,672$ 345,445$ 352,354$ 359,401$ Intergovernmental Revenues 35,276 - - - - - Other Revenue 181,128 70,000 15,500 15,500 15,500 15,500 Total Revenues 665,539 402,031 354,172 360,945 367,854 374,901 Current Expenses Salaries and Employee Benefits 230,844 175,635 182,660 189,967 195,666 201,536 Materials, Supplies and Services 329,259 70,065 70,766 71,473 72,188 72,910 Total Expenditures 560,103 245,700 253,426 261,440 267,854 274,446 Change in Fund Balance 105,436 156,331 100,746 99,505 100,000 100,455 Fund Balance 4,761,596$ 4,917,927$ 5,018,673$ 5,118,177$ 5,218,178$ 5,318,633$ Projected 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. 59 CITY OF HOPKINS 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 in 2024. 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 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. Arts Center Approved 2017 2018 2019 2020 2021 2022 Actual Budget Budget Budget Budget Budget Current Revenues Property Tax 243,665$ 250,000$ 257,500$ 400,000$ 700,000$ 700,000$ Intergovernmental Revenues 32,502 41,000 41,820 42,656 43,509 44,379 Charges for Current Services 501,250 547,906 567,899 582,260 596,997 612,123 Other Revenue 44,395 49,800 43,800 43,800 43,800 43,800 Transfers In 86,920 86,920 86,920 86,920 86,920 86,920 Total Revenues 908,732 975,626 997,939 1,155,636 1,471,226 1,487,222 Current Expenses Salaries and Employee Benefits 415,740 458,339 496,773 515,402 534,729 554,782 Materials, Supplies and Services 342,599 403,069 418,184 433,866 450,136 467,016 Capital Outlay 330,557 131,500 100,000 103,000 106,090 109,273 Total Expenditures 1,088,896 992,908 1,014,957 1,052,268 1,090,955 1,131,071 Change in Fund Balance (180,164) (17,282) (17,018) 103,368 380,271 356,151 Fund Balance (1,177,204)$ (1,194,486)$ (1,211,504)$ (1,108,135)$ (727,865)$ (371,713)$ Projected 60 CITY OF HOPKINS The water fund has several maintenance projects planned in 2018 that will draw on reserves. Water utility rates were increased by approximately 6.7% in 2018 to continue to cover capital and replacement costs. 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. 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 2018 to continue to pay for capital and replacement costs. In 2018 scheduled maintenance includes sewer lining for approximately $50,000. Budgeted transfers are for the sewer funds share of the public works facility debt as the sewer department headquarters are located in that facility. Water Fund Approved 2017 2018 2019 2020 2021 2022 Actual Budget Budget Budget Budget Budget Current Revenues Utility Charges 1,683,816$ 1,985,085$ 2,108,324$ 2,251,690$ 2,404,805$ 2,568,332$ Other Revenue 148,461 162,000 176,460 179,989 183,589 187,261 Total Revenues 1,832,277 2,147,085 2,284,784 2,431,679 2,588,394 2,755,593 Current Expenses Salaries and Employee Benefits 510,512 367,035 381,716 396,985 408,895 421,161 Materials, Supplies and Services 890,583 1,132,753 1,163,633 1,194,725 1,230,566 1,267,484 Depreciation 303,421 250,000 325,000 325,000 325,000 325,000 Debt Service Payments 60,867 43,547 38,073 35,010 30,710 26,160 Transfer Out 24,120 187,475 191,325 190,125 188,925 192,675 Total Expenditures 1,789,503 1,980,810 2,099,747 2,141,845 2,184,096 2,232,480 Net Income 42,774 166,275 185,037 289,834 404,298 523,113 Projected Sewer Fund Approved 2017 2018 2019 2020 2021 2022 Actual Budget Budget Budget Budget Budget Current Revenues Utility Charges 2,669,872$ 3,088,299$ 3,242,714$ 3,404,850$ 3,575,092$ 3,753,847$ Other Revenue 18,578 - 1,200 1,200 1,200 1,200 Total Revenues 2,688,450 3,088,299 3,243,914 3,406,050 3,576,292 3,755,047 Current Expenses Salaries and Employee Benefits 252,584 396,385 412,240 428,730 441,592 454,840 Materials, Supplies and Services 1,770,346 2,033,830 2,124,929 2,184,554 2,250,091 2,317,593 Depreciation 202,237 170,000 215,000 215,000 215,000 215,000 Debt Service Payments 35,975 33,056 29,493 26,068 22,368 18,568 Transfer Out 20,236 112,931 186,150 186,150 186,150 186,150 Total Expenditures 2,281,378 2,746,202 2,967,812 3,040,502 3,115,201 3,192,151 Net Income 407,072 342,097 276,102 365,548 461,091 562,896 Projected 61 CITY OF HOPKINS 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 2018. 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. Storm Sewer Fund Approved 2017 2018 2019 2020 2021 2022 Actual Budget Budget Budget Budget Budget Current Revenues Utility Charges 803,709$ 802,000$ 802,000$ 802,000$ 802,000$ 802,000$ Other Revenue 41,130 8,200 1,200 1,200 1,200 1,200 Total Revenues 844,839 810,200 803,200 803,200 803,200 803,200 Current Expenses Salaries and Employee Benefits 61,831 68,097 70,821 73,654 75,863 78,139 Materials, Supplies and Services 114,298 79,000 103,700 106,103 109,286 112,565 Depreciation 246,120 227,000 250,000 250,000 250,000 250,000 Debt Service Payments 24,486 22,341 120,000 120,000 125,000 125,000 Transfer Out - 130,504 134,850 134,850 134,850 134,850 Total Expenditures 446,735 526,942 679,371 684,607 694,999 700,554 Net Income 398,104 283,258 123,829 118,593 108,201 102,646 Projected 62 CITY OF HOPKINS GENERAL FUND BUDGET Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Property Taxes $9,113,565 $9,544,396 $10,083,561 $10,366,866 $10,832,857 4.50% Intergovernmental 1,043,085 1,061,205 1,078,944 1,028,426 1,173,933 14.15% Licenses, Permits and Fines 706,791 900,057 1,022,348 700,825 779,065 11.16% Interest Earnings 47,932 36,547 22,319 20,000 15,000 -25.00% Charges for Services 285,911 406,998 323,655 215,650 229,050 6.21% Franchise Fees 300,390 306,335 309,729 290,000 290,000 Miscellaneous 36,448 39,729 160,351 213,545 115,450 -45.94% Total Revenues 11,534,122 12,295,267 13,000,907 12,835,312 13,435,355 4.67% Expenditures Salaries, Wages and Benefits Salaries and Wages 6,403,425 6,744,621 7,228,596 7,058,003 7,113,623 0.79% Fringe Benefits 2,384,226 2,428,413 2,483,037 2,680,102 2,651,883 -1.05% Materials, Supplies and Services Professional & Technical Services 1,024,164 1,163,326 1,519,340 1,133,185 1,412,715 24.67% Utilities and Maintenance 712,335 828,854 974,619 853,510 1,017,087 19.17% Operations 443,911 484,999 585,169 641,726 1,038,133 61.77% City Support Services 148,886 134,056 73,554 203,655 112,000 -45.01% Supplies and Materials 720,984 785,273 554,711 743,300 499,160 -32.85% Capital Outlay Buildings & Improvements - - - - Vehicles - - - - Office Furniture and Equipment - - 10,256 10,400 20,500 Equipment 5,622 - 23,945 21,300 36,300 70.42% Equipment Allocation 342,998 404,816 441,193 441,193 485,013 9.93% Total Expenditures 12,186,551 12,974,358 13,894,420 13,786,374 14,386,414 4.35% Transfer Out 10,000 140,000 15,000 15,000 15,000 Reimbursed Expenditures (968,029) (921,218) (914,185) (966,062) (966,059) 0.00% Net Total Expenditures 11,228,522 12,193,140 12,995,235 12,835,312 13,435,355 4.67% Excess (deficiency) of Rev. over Exp.305,600 102,127 5,672 - - Ending Fund Balance 5,694,464 5,796,591 5,802,263 5,898,718 5,802,263 63 CITY OF HOPKINS UNALLOCATED Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Property Taxes $9,113,014 $9,544,095 $10,082,136 $10,366,666 $10,832,657 4.50% Intergovernmental Revenue 409,112 434,473 444,405 444,426 569,533 28.15% Interest earnings 47,931 31,992 28,282 20,000 15,000 -25.00% Franchise Fees 300,390 306,355 309,729 290,000 290,000 Miscellaneous 5,839 508 21,700 250 250 Total Revenues 9,876,286 10,317,423 10,886,252 11,121,342 11,707,440 5.27% Expenditures Materials, Supplies and Services Operations 11,685 11,513 (13,894) 69,772 448,200 542.38% Operating Transfers Transfer from other funds - - - - - Transfer to other funds 10,000 140,000 15,000 15,000 15,000 Total Expenditures 21,685 151,513 1,106 84,772 463,200 446.41% Indirectly Funded Amount 9,854,601 10,165,910 10,885,146 11,036,570 11,244,240 1.88% 64 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 2018: 1. Monitor tax collections 2. Evaluate franchise fee structure 3. Maximize investment earnings FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Property Taxes $ 10,082,136 $ 10,366,666 $ 10,832,657 4.50% Intergovernmental 444,404 444,426 569,533 28.15% Interest Earnings 28,282 20,000 15,000 -25.00% Franchise Fee 309,729 290,000 290,000 0.00% Miscellaneous 21,700 250 250 0.00% Total Revenues 10,886,251 11,121,342 11,707,440 5.27% EXPENDITURES: Other Services & Charges (13,894) 69,772 448,200 542.38% Operating Transfer 15,000 15,000 15,000 -- Total Expenditures 1,106 84,772 463,200 446.41% NET TAX AND GENERAL REVENUE SUPPORTED $ 10,885,146 $ 11,036,570 $ 11,244,240 1.88% 65 CITY OF HOPKINS CITY COUNCIL BUDGET Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Expenditures Salaries, Wages and Benefits Salaries and Wages 25,507 36,004 34,913 32,000 38,860 21.44% Fringe Benefits 2,346 2,723 2,748 2,448 5,499 124.63% Materials, Supplies and Services Professional & Technical Services 110 -5 150 650 333.33% Operations 46,133 43,792 45,228 42,500 45,000 5.88% Supplies and Materials 8,171 7,898 4,489 5,800 13,550 133.62% Total Expenditures 82,266 90,417 87,383 82,898 103,559 24.92% Indirectly Funded Amount 82,266 90,417 87,383 82,898 103,559 24.92% The City Council Department accounts for the expenses of the mayor and council. 66 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 2018: Work across all city departments and the community to implement the current Goals and Strategic Plan: (1) Preserve the Home Town Feel of Hopkins, (2) Urban Design: Do It Right, and (3) Take it to Them (citizen engagement) 1. Promote city marketing efforts through the “Think Hopkins” campaign 2. Conduct 2018 Citizen’s Academy and Alumni event 3. Publish 2017/18 City Annual Report 4. Conduct 2017 State of the City event FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 37,662$ 34,448$ 44,359$ 28.77% Other Services & Charges 49,723 48,450 59,200 22.19% 87,385$ 82,898$ 103,559$ NET TAX AND GENERAL REVENUE SUPPORTED 87,385$ 82,898$ 103,559$ 24.92% PERSONNEL: Number of FTE positions Mayor and 4 Council 67 CITY OF HOPKINS ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2017 Change Expenditures Salaries, Wages and Benefits Salaries and Wages $429,997 $445,790 $449,106 $401,961 $438,046 8.98% Fringe Benefits 144,464 132,770 135,361 165,000 129,138 -21.73% Materials, Supplies and Services Professional & Technical Services 15,865 18,454 59,803 70,800 34,300 -51.55% Utilities and Maintenance 16,438 16,466 14,644 14,790 15,272 3.26% Operations 14,301 44,197 91,805 72,671 114,539 57.61% City Support Services 1,805 2,229 2,356 2,356 2,559 8.62% Supplies and Materials 4,979 4,588 11,972 6,070 10,135 66.97% Total Expenditures 627,849 664,494 765,047 733,648 743,989 1.41% Reimbursed Expenditures (104,000) (104,000) (104,000) (104,000) (104,000) Net Total Expenditures 523,849 560,494 661,047 629,648 639,989 1.64% Indirectly Funded Amount 523,849 560,494 661,047 629,648 639,989 1.64% The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services 68 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $224,137 $ 232,725 $232,884 0.07% Other Services & Charges 31,786 32,469 35,791 10.23% Reimbursed Expenditures (66,000) (66,000) (66,000)0.00% $189,923 $ 199,194 $202,675 NET TAX AND GENERAL REVENUE SUPPORTED $189,923 $ 199,194 $202,675 1.75% PERSONNEL: Number of FTE positions 2.05 2.05 2.05 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 2018: 1. Complete classification and compensation study. 2. Successfully engage new employees. 3. Assist the City Manager with staff development opportunities. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $ 43,141 $ 56,956 $ 56,967 0.02% Other Services & Charges 52,786 55,420 20,439 -63.12% Reimbursed Expenditures (16,000) (16,000) (16,000)0.00% $ 79,927 $ 96,376 $ 61,406 NET TAX AND GENERAL REVENUE SUPPORTED $ 79,927 $ 96,376 $ 61,406 -36.28% PERSONNEL: Number of FTE positions 0.4 0.4 0.4 69 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Other Services & Charges 1,417 2,500 2,550 2.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 1,417 $ 2,500 $ 2,550 2.00% PERSONNEL: Number of FTE positions 0 0 0 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 2018: 1. Implement Web Based E-mail 2. Implement new backup servers. 3. Improve event log storage and correlation. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $317,128 $ 277,280 $277,334 0.02% Other Services & Charges 94,653 76,310 118,025 54.67% Reimbursed Expenditures (22,000) (22,000) (22,000)0.00% $389,781 $ 331,590 $373,359 NET TAX AND GENERAL REVENUE SUPPORTED $389,781 $ 331,590 $373,359 12.60% PERSONNEL: Number of FTE positions 2.55 3.0 3.0 70 CITY OF HOPKINS FINANCE BUDGET Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Miscellaneous $17,643 $19,906 $20,515 $14,850 $14,850 Expenditures Salaries, Wages and Benefits Salaries and Wages 287,326 279,040 385,615 294,992 294,992 Fringe Benefits 97,694 98,382 61,710 98,742 98,840 0.10% Materials, Supplies and Services Professional & Technical Services 149,156 122,916 115,234 55,035 50,885 -7.54% Utilities and Maintenance 24,239 2,954 238 23,300 23,300 Operations 12,527 10,111 15,551 13,730 19,155 39.51% City Support Services 356 394 394 394 406 3.05% Supplies and Materials 20,550 6,201 6,000 6,200 6,200 Capital Outlay Equipment Allocation 950 1,218 1,327 1,327 1,459 9.95% Total Expenditures 592,798 521,216 586,069 493,720 495,237 0.31% Reimbursed Expenditures (232,808) (196,994) (212,470) (211,062) (211,059) 0.00% Net Total Expenditures 359,990 324,222 373,599 282,658 284,178 0.54% Indirectly Funded Amount 342,347 304,316 353,084 267,808 269,328 0.57% The Finance department consists of six programs. They are budgeting, Debt Management, General Accounting, Payroll, Tax Increment Financing Reporting, and Utility Billing. 71 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 2018: 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 2018 bond issue. 4. Analyze possibilities of debt refunding(s). 5. Prepare annual debt reporting for county as required by state statutes FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $ 19,573 $ 13,810 $ 13,813 0.02% Other Services & Charges 1,532 1,682 1,685 0.18% Reimbursed Expenditures (15,430) (15,118) (15,118)0.00% $ 5,675 $ 374 $ 380 NET TAX AND GENERAL REVENUE SUPPORTED $ 5,675 $ 374 $ 380 -- PERSONNEL: Number of FTE positions 0.1 0.1 0.1 In January 2014 the City was upgraded to a AA+ 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 2017. 72 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Miscellaneous $ 10,321 $ 5,850 $ 5,850 0.00% EXPENDITURES: Personnel Services $221,618 $ 191,851 $191,914 0.03% Other Services & Charges 67,299 60,355 61,704 2.24% Reimbursed Expenditures (64,000) (64,000) (64,000)0.00% $224,917 $ 188,206 $189,618 0.75% NET TAX AND GENERAL REVENUE SUPPORTED $214,596 $ 182,356 $183,768 0.77% PERSONNEL: Number of FTE positions 2.0 2.0 1.75 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Submit CAFR for the GFOA award program. 2. Provide accurate and timely month-end and quarterly financial reports. 3. Update the Financial Management Plan 4. Prepare 20-year Capital Improvement Plan. 5. Prepare 20-year Equipment Replacement Plan 6. Update CAFR on city website. 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $107,772 $ 96,403 $ 96,712 0.32% Other Services & Charges 986 6,406 6,135 -4.23% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $ 88,758 $ 82,809 $ 82,847 NET TAX AND GENERAL REVENUE SUPPORTED $ 88,758 $ 82,809 $ 82,847 0.05% PERSONNEL: Number of FTE positions 0.75 0.75 1.0 73 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $ 19,895 $ 13,810 $ 13,813 0.02% Other Services & Charges 19,208 3,507 3,510 0.09% Reimbursed Expenditures (18,040) (16,943) (16,940)-0.02% $ 21,063 $ 374 $ 383 NET TAX AND GENERAL REVENUE SUPPORTED $ 21,063 $ 374 $ 383 -- PERSONNEL: Number of FTE positions 0.1 0.1 0.1 FUND 101 – GENERAL FUND PROGRAM: Finance – TIF Administration PROGRAM SUMMARY The Tax Increment Financing Administration program of the Finance Department records and reports tax increment program activities. It is charged with the responsibility of ensuring compliance with state statutes and guidelines. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue analysis of Tax Increment Financing funds. 2. Assist with implementation of new TIF districts. 3. Prepare annual Office of the State Auditor 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 2018: 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. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 10,195 $ 9,000 $ 9,000 0.00% EXPENDITURES: Personnel Services $ 78,467 $ 77,860 $ 77,880 0.03% Other Services & Charges 49,718 28,036 28,071 0.12% Reimbursed Expenditures (95,000) (95,001) (95,001)0.00% $ 33,185 $ 10,895 $ 10,950 0.50% NET TAX AND GENERAL REVENUE SUPPORTED $ 22,990 $ 1,895 $ 1,950 -- PERSONNEL: Number of FTE positions 1.65 1.65 1.65 74 CITY OF HOPKINS LEGAL BUDGET Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Court Fines $ 144,676 $ 135,202 $ 103,347 $ 125,000 $ 125,000 Expenditures Materials, Supplies and Services Professional & Technical Services 156,835 196,904 247,785 150,000 150,000 Total Expenditures 156,835 196,904 247,785 150,000 150,000 Indirectly Funded Amount 12,159 61,702 144,438 25,000 25,000 The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 75 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Court Fines $ 103,347 $125,000 $ 125,000 0.00% EXPENDITURES: Other Services & Charges $ 247,785 $150,000 $ 150,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 144,438 $ 25,000 $ 25,000 0.00% PERSONNEL: The City contracts with a legal firm to represent the City. 76 CITY OF HOPKINS MUNICIPAL BUILDINGS Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2017 Change Revenues Miscellaneous $ -$ -$36,606 $ -$ - Expenditures Salaries, Wages and Benefits Salaries and Wages 96,996 101,449 106,257 104,655 118,725 13.44% Fringe Benefits 43,272 44,834 46,587 54,217 47,187 -12.97% Materials, Supplies and Services Professional & Technical Services 40,865 36,395 92,277 42,000 44,650 6.31% Utilities and Maintenance 120,293 179,656 149,466 139,350 146,750 5.31% Operations 2,685 1,477 4,830 2,300 7,270 216.09% City Support Services 14,174 17,877 14,478 18,770 15,247 -18.77% Supplies and Materials 14,400 17,979 11,193 17,440 17,400 -0.23% Capital Outlay Office Furniture and Equipment - - - -18,000 100.00% Total Expenditures 332,685 399,667 425,088 378,732 415,229 9.64% Reimbursed Expenditures (32,000) (32,000) (32,000) (32,000) (32,000) Net Total Expenditures 300,685 367,667 393,088 346,732 383,229 10.53% Indirectly Funded Amount 300,685 367,667 356,482 346,732 383,229 10.53% The Municipal Building Department consists of building maintenace. 77 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 2018: 1. Continuation of Green Initiatives within City Hall. 2. Explore Renovation Project. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Miscellaneous $ 36,605 $ - $ - 0.00% EXPENDITURES: Personnel Services $ 152,844 $158,872 $ 165,912 4.43% Other Services & Charges 272,245 223,310 249,318 11.65% Reimbursed Expenditures (32,000) (32,000) (32,000)0.00% $ 393,089 $350,182 $ 383,230 9.44% NET TAX AND GENERAL REVENUE SUPPORTED $ 356,484 $350,182 $ 383,230 9.44% PERSONNEL: Number of FTE positions 1.45 1.45 1.45 City Hall at 11th Ave and 1st St 78 CITY OF HOPKINS COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2017 Change Revenues Licenses $14,941 $15,305 $17,810 $13,000 $13,800 6.15% Permits 481,338 559,807 692,790 379,510 456,950 20.41% Current Services 31,801 290,333 161,610 106,050 99,050 -6.60% Expenditures Salaries, Wages and Benefits Salaries and Wages 632,989 717,434 652,158 656,725 656,725 Fringe Benefits 202,191 209,193 198,940 210,125 210,344 0.10% Materials, Supplies and Services Professional & Technical Services 172,119 177,421 134,325 185,745 215,830 16.20% Utilities and Maintenance 8,348 8,048 12,550 14,560 16,725 14.87% Operations 23,226 22,358 68,830 81,595 46,585 -42.91% City Support Services 36,110 40,864 39,719 42,194 43,284 2.58% Supplies and Materials 7,871 12,942 11,575 11,925 16,755 40.50% Capital Outlay Equipment Allocation 3,529 4,305 4,691 4,691 4,862 3.65% Total Expenditures 1,086,383 1,192,565 1,122,788 1,207,560 1,211,110 0.29% Reimbursed Expenditures (61,000) (61,000) (61,000) (61,000) (61,000) Net Total Expenditures 1,025,383 1,131,565 1,061,788 1,146,560 1,150,110 0.31% Indirectly Funded Amount 497,303 266,120 189,578 648,000 580,310 -10.45% The Community Service department is made up of four main programs. They are Reception, Assessing, Inspections, and City Clerk. 79 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 40,751$ 41,957$ 41,971$ 0.03% Other Services & Charges 600 1,087 222 -79.58% $ 41,351 $ 43,044 $ 42,193 NET TAX AND GENERAL REVENUE SUPPORTED $ 41,351 $ 43,044 $ 42,193 -1.98% PERSONNEL: Number of FTE positions 1.45 1 1 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 1,400 $ 3,000 $ 3,000 0.00% EXPENDITURES: Personnel Services $ 91,687 $ 99,093 $ 101,432 2.36% Other Services & Charges 73,927 145,229 123,794 -14.76% Reimbursed Expenditures (24,000) (24,000) (2,400)-90.00% $ 141,614 $220,322 $ 222,826 1.14% NET TAX AND GENERAL REVENUE SUPPORTED $ 140,214 $217,322 $ 219,826 1.15% PERSONNEL: Number of FTE positions 1.05 1.05 1.05 FUND 101 – GENERAL FUND PROGRAM: Community Services – Receptionist PROGRAM SUMMARY The Receptionist program of the Community Services Department answers calls at main switchboard and route calls to various departments. Directs walk-in customers to the appropriate department. Sales of dog licenses and parking permits occur in this program. Receipts are accepted for payment of building permits and utility bills. The program also provides clerical and secretarial services to other departments. OBJECTIVES TO BE ACCOMPLISHED IN 2018: 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 2018: 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 Springbrook Financial Software. The Special Assessment Clerk is available to assist with property tax and assessing related questions. 80 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 7,225 $ 7,050 $ 7,050 0.00% EXPENDITURES: Personnel Services $ 79,590 $ 70,080 $ 70,096 0.02% Other Services & Charges 58,183 77,040 36,472 -52.66% Reimbursed Expenditures (37,000) (37,000) (37,000)0.00% $ 100,773 $110,120 $ 69,568 -36.83% NET TAX AND GENERAL REVENUE SUPPORTED $ 93,548 $103,070 $ 62,518 -39.34% PERSONNEL: Number of FTE positions 0.75 0.75 0.75 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 4,230 $ 20,000 $ - --- EXPENDITURES: Personnel Services $ 46,160 $ 41,351 $ 42,501 2.78% Other Services & Charges 10,667 16,443 41,399 151.77% $ 56,827 $ 57,794 $ 83,900 45.17% NET TAX AND GENERAL REVENUE SUPPORTED $ 52,597 $ 37,794 $ 83,900 121.99% PERSONNEL: Number of FTE positions 0.35 0.35 0.35 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: Goal 2, Strategy 2 – Go Green 1. Purchase “green” or recycled products when available if the pricing is competitive and product meets quality standards. 2. Ensure that the City Document Archives section of the City’s website contains the most up to date information in all areas listed. 3. Review and update where needed applications and forms that are available on the Web site. 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 2018: 1. Recruit and train additional Election Judges for the 2018 Local Election. Offer some part-time positions as requested by several current Election Judges who may be unable to complete a 15 or 16 hour day. 2. W ork with Hennepin County City to review voting equipment and the possible replacement. 3. Work to better organize information and supplies for Election Judges use on Election Day. 81 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Permits $ 8,394 $ 6,000 $ 8,000 33.33% -- EXPENDITURES: Personnel Services $ 45,053 $ 41,601 $ 41,646 0.11% Other Services & Charges 419 424 474 11.79% $ 45,472 $ 42,025 $ 42,120 0.23% NET TAX AND GENERAL REVENUE SUPPORTED $ 37,078 $ 36,025 $ 34,120 -5.29% PERSONNEL: Number of FTE positions 0.35 0.35 1.0 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: License, Permits, Charges $ 474,963 $239,460 $ 288,400 20.44% EXPENDITURES: Personnel Services $ 213,390 $208,891 $ 208,936 0.02% Other Services & Charges 117,122 81,381 92,811 14.05% $ 330,512 $290,272 $ 301,747 3.95% NET TAX AND GENERAL REVENUE SUPPORTED $(144,451) $ 50,812 $ 13,347 -73.73% PERSONNEL: Number of FTE positions 2.05 2.05 2.05 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Work on closing out aging permits from the past years. 2. Start Saving all permits to Laserfiche 3. Look at Updating Permit Fees 4. Design New Commercial Tenant Finish Handout 5. Implement Permit Works Software 6. Train staff on Permit Works Software PROGRAM: Community Services – Fire Code Inspection PROGRAM SUMMARY The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue the fire prevention inspection program. 2. Implement new fire code software. 3. Hire full-time fire marshal 82 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Permits $ 166,775 $ 68,000 $ 81,500 19.85% EXPENDITURES: Personnel Services $ 85,295 $ 95,158 $ 95,178 0.02% Other Services & Charges 2,857 4,394 6,063 37.98% $ 88,152 $ 99,552 $ 101,241 1.70% NET TAX AND GENERAL REVENUE SUPPORTED $ (78,623) $ 31,552 $ 19,741 -37.43% PERSONNEL: Number of FTE positions 1.0 1.0 1.0 FUND 101 – GENERAL FUND PROGRAM: Community Services – Heating and Plumbing Code Inspection PROGRAM SUMMARY The Heating and Plumbing Code Inspection program of the Community Services Department inspects new and remodeled buildings for heating and plumbing compliance. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases. Become familiar with new gas, mechanical and energy code. MAJO R OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. PermitWorks Training 2. Close Out Aging Permits 3. 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Update Truth In Housing guidelines. 2. Retain all new rental inspection results on Laserfiche 3. Update Rental Licensing and Inspection Fees FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: License, permits, charges $ 195,209 $136,700 $ 163,500 19.60% EXPENDITURES: Personnel Services $ 165,535 $177,602 $ 177,636 0.02% Other Services & Charges 7,537 8,194 12,416 51.53% $ 173,072 $185,796 $ 190,052 2.29% NET TAX AND GENERAL REVENUE SUPPORTED $ (22,137) $ 49,096 $ 26,552 -45.92% PERSONNEL: Number of FTE positions 1.82 1.82 1.82 83 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Citations, charges for service $ 13,975 $ 8,350 $ 8,350 0.00% EXPENDITURES: Personnel Services $ 81,563 $ 85,413 $ 85,431 0.02% Other Services & Charges 377 3,833 6,105 59.27% $ 81,940 $ 89,246 $ 91,536 2.57% NET TAX AND GENERAL REVENUE SUPPORTED $ 67,965 $ 80,896 $ 83,186 2.83% PERSONNEL: Number of FTE positions 0.86 0.86 0.86 FUND 101 – GENERAL FUND PROGRAM: Community Services – Miscellaneous Community Inspection PROGRAM SUMMARY The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. Track responses to citizens and results of the complaint. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue neighborhood sweeps and respond to citizen complaints in a prompt and courteous manner. 2. Send out newsletter in spring regarding sweeps potential violations. 3. Convert Incode software. Learn PermitWorks software. PROGRAM: Community Services – Vacant Property Management PROGRAM SUMMARY The Vacant Property Management program of the Community Services Department MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Property Registrations $ 8,500 $ 10,000 $ 10,000 0.00% EXPENDITURES: Personnel Services $ 2,072 $ 2,242 $ 2,242 0.00% Other Services & Charges 1 2,685 2,685 0.00% $ 2,073 $ 4,927 $ 4,927 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ (6,427) $ (5,073) $ (5,073)-- PERSONNEL: Number of FTE positions 0.02 0.02 0.02 84 CITY OF HOPKINS POLICE BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Intergovernmental $366,289 $349,975 $404,752 $314,000 $334,400 6.50% Licenses 77,945 86,999 86,334 95,600 95,600 Court Fines/Forfeitures 49,098 65,806 89,605 51,000 51,000 Penalties 490 47 852 500 500 Current Service 22,787 15,705 49,349 33,000 33,000 Miscellaneous 4,284 21,527 657 2,000 2,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 2,830,874 2,943,222 3,276,571 3,173,378 3,174,717 0.04% Fringe Benefits 1,102,104 1,141,770 1,230,472 1,223,772 1,187,856 -2.93% Materials, Supplies and Services Professional & Technical Services 108,698 89,823 133,992 102,290 164,150 60.48% Utilities and Maintenance 103,378 101,133 145,186 122,370 144,445 18.04% Operations 76,505 117,498 146,352 154,207 156,858 1.72% City Support Services 122,015 146,416 158,030 158,030 172,619 9.23% Supplies and Materials 171,814 199,650 111,949 161,055 87,580 -45.62% Capital Outlay Equipment - -15,765 -15,000 Total Expenditures 4,515,389 4,739,512 5,218,317 5,095,102 5,103,225 0.16% Indirectly Funded Amount 3,994,497 4,199,453 4,586,768 4,599,002 4,586,725 -0.27% 85 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Miscellaneous $ - $ - $ - 0.00% EXPENDITURES: Personnel Services 489,406$ 334,303$ 334,591$ 0.09% Other Services & Charges 157,514$ 160,514$ 179,581$ 11.88% $ 646,920 $ 494,817 $ 514,172 NET TAX AND GENERAL REVENUE SUPPORTED $ 646,920 $ 494,817 $ 514,172 3.91% PERSONNEL: Number of FTE positions 2.15 2.15 2.15 86 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 4,059 $ 10,000 $ 10,000 0.00% Intergovernmental Revenue 402,035 314,000 334,400 6.50% Fines & Forfeits 78,175 51,500 51,500 0.00% Charges for Service 39,942 15,000 15,000 0.00% Misecllaneous 209 1,500 1,500 0.00% $ 524,420 $ 392,000 $ 412,400 5.20% EXPENDITURES: Personnel Services $3,223,655 $3,098,085 $3,062,491 -1.15% Other Services & Charges 347,754 298,476 317,100 6.24% Capital Expenditures 9,362 - - #DIV/0! $3,580,771 $3,396,561 $3,379,591 -0.50% NET TAX AND GENERAL REVENUE SUPPORTED $3,056,351 $3,004,561 $2,967,191 -1.24% PERSONNEL: Number of FTE positions 23.6 23.6 23.6 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Provide the highest level of professional customer service to the public with each and every contact. 2. Create trust and partnerships with our multi-cultural community. 3. Provide proactive criminal enforcement through intelligence- lead policing efforts. 4. Committed to identifying and solving problems through building positive community partnerships PROGRAM: Police – SWAT Team PROGRAM SUMMARY The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Miscellaneous $ - $ - $ - 0.00% EXPENDITURES: Personnel Services 64,599$ 59,309$ 59,354$ 0.08% Other Services & Charges 21,537$ 21,963$ 22,577$ 2.80% $ 86,136 $ 81,272 $ 81,931 NET TAX AND GENERAL REVENUE SUPPORTED $ 86,136 $ 81,272 $ 81,931 0.81% PERSONNEL: Number of FTE positions 0.45 0.45 0.45 87 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 13,399$ 12,747$ 12,819$ 0.56% Other Services & Charges 1,921$ 8,041$ 8,078$ 0.46% $ 15,320 $ 20,788 $ 20,897 NET TAX AND GENERAL REVENUE SUPPORTED $ 15,320 $ 20,788 $ 20,897 0.52% PERSONNEL: Number of FTE positions 0.05 0.05 0.05 FUND 101 – GENERAL FUND PROGRAM: Police – Reserves PROGRAM SUMMARY The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, community-building and outreach efforts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue to recruit individuals with diverse backgrounds. 2. Continue to supplement uniformed patrol 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 73,075 $ 75,600 $ 75,600 0.00% EXPENDITURES: Personnel Services $ 257,945 $ 386,036 $ 386,486 0.12% Other Services & Charges 72,850 110,948 108,143 -2.53% $ 330,795 $ 496,984 $ 494,629 -0.47% NET TAX AND GENERAL REVENUE SUPPORTED $ 257,720 $ 421,384 $ 419,029 -0.56% PERSONNEL: Number of FTE positions 3.9 3.9 3.9 88 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Forfeitures $ 15,000 $ - $ - #DIV/0! EXPENDITURES: Personnel Services $ 92,500 $ 126,585 $ 126,684 0.08% Other Services & Charges 11,306 11,561 17,072 47.67% $ 103,806 $ 138,146 $ 143,756 4.06% NET TAX AND GENERAL REVENUE SUPPORTED $ 88,806 $ 138,146 $ 143,756 4.06% PERSONNEL: Number of FTE positions 1 1 1 89 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 4,200 $ 5,000 $ 5,000 0.00% Intergovernmental Revenue - - - Miscellaneous 447 - - Donations - 500 500 0.00% $ 4,647 $ 5,500 $ 5,500 0.00% EXPENDITURES: Personnel Services $ 87,769 $ 101,484 $ 101,498 0.01% Other Services & Charges 20,411 14,819 14,882 0.43% $ 108,180 $ 116,303 $ 116,380 0.07% NET TAX AND GENERAL REVENUE SUPPORTED $ 103,533 $ 110,803 $ 110,880 0.07% PERSONNEL: Number of FTE positions 0.85 0.85 0.85 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 2018: 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. National Night Out New American Academy Cops ‘n Kids Fishing 90 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 5,000 $ 5,000 $ 5,000 0.00% Charges for Service 9,408 18,000 18,000 0.00% $ 14,408 $ 23,000 $ 23,000 0.00% EXPENDITURES: Personnel Services 277,772$ 278,601$ 278,651$ 0.02% Other Services & Charges 3,722 7,539 7,719 2.39% $ 281,494 $ 286,140 $ 286,370 NET TAX AND GENERAL REVENUE SUPPORTED $ 267,086 $ 263,140 $ 263,370 0.09% PERSONNEL: Number of FTE positions 3.45 3.45 3.45 FUND 101 – GENERAL FUND PROGRAM: Police – Support Services PROGRAM SUMMARY This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue to refine processes for better efficiency of records maintenance. 2. Train on new RMS reporting software to develop reports to provide more data to the public. 3. Continue to provide weekly crime statistics and learning additional crime analysis software and mapping tools. 4. Maintain efficiency with report flow to respective agencies. 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 2018: 1. Continue to provide exceptional services to all stakeholders. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Other Services & Charges 64,896$ 64,091$ 65,500$ 2.20% NET TAX AND GENERAL REVENUE SUPPORTED 64,896$ 64,091$ 65,500$ 2.20% PERSONNEL: Number of FTE positions 0 0 0 91 CITY OF HOPKINS FIRE BUDGET Revenues and Expenditures Actual Actual Actual Budget Budget Percent 2015 2016 2017 2018 2018 Change Revenues Licenses & Permits $2,410 $265 $180 $3,500 $3,500 State Aid 102,657 105,999 113,360 100,000 100,000 Federal Grant - - - - - County Grant - - - - - Administrative Citations 900 300 1,800 300 300 Current Service 11,934 7,222 13,030 3,000 15,000 400.00% Donations -2,240 - - - Miscellaneous -3,100 200 3,500 3,500 117,901 119,126 128,570 110,300 122,300 10.88% Expenditures Salaries, Wages and Benefits Salaries and Wages 362,214 452,565 450,686 450,686 492,280 9.23% Fringe Benefits 200,521 259,721 242,984 242,984 244,951 0.81% Materials, Supplies and Services Professional & Technical Services 34,546 59,733 28,700 71,647 25,700 -64.13% Utilities and Maintenance 72,349 74,287 106,900 55,500 118,300 113.15% Operations 121,517 56,488 79,506 63,800 81,452 27.67% City Support Services 142,717 161,944 172,426 175,535 189,120 7.74% Supplies and Materials 104,428 110,064 84,530 105,580 77,255 -26.83% Capital Outlay Equipment - -10,800 10,800 10,800 Total Expenditures 1,038,292 1,174,801 1,176,532 1,176,532 1,239,858 5.38% Indirectly Funded Amount 920,391 1,055,675 1,047,962 1,066,232 1,117,558 4.81% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 92 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses & Fines $ 1,980 $ 3,800 $ 3,800 0.00% Intergovernmental Revenue 113,360 100,000 100,000 0.00% Charges for Service 13,030 3,000 18,500 516.67% Donations 200 3,500 - 0.00% $ 128,570 $ 110,300 $ 122,300 10.88% EXPENDITURES: Personnel Services $ 577,310 $ 693,670 $ 737,231 6.28% Other Services & Charges 478,585 472,062 491,827 4.19% Capital Outlay - 10,800 10,800 0.00% $1,055,895 $1,176,532 $1,239,858 5.38% NET TAX AND GENERAL REVENUE SUPPORTED $ 927,325 $1,066,232 $1,117,558 4.81% PERSONNEL: Number of FTE positions 1.25 3.25 3.25 Volunteer Firefighters 35 33 31 93 CITY OF HOPKINS PUBLIC WORKS BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Licenses and Permits $23,660 $23,965 $12,602 $27,115 $27,115 Intergovernmental 165,027 170,757 84,927 170,000 170,000 Charges for Services 7,643 7,749 11,952 2,750 2,750 Other Miscellaneous 5,609 4,931 8,060 4,600 4,600 Expenditures Salaries, Wages and Benefits Salaries and Wages 1,252,718 1,269,248 1,426,454 1,428,831 1,427,178 -0.12% Fringe Benefits 472,094 465,599 535,923 566,142 568,057 0.34% Materials, Supplies and Services Professional & Technical Services 300,162 397,563 444,947 344,700 475,300 37.89% Utilities and Maintenance 331,630 407,051 504,153 415,090 505,695 21.83% Operations 2,940 38,697 92,771 12,730 71,155 458.96% City Support Services 159,648 179,170 140,513 188,814 153,144 -18.89% Supplies and Materials 346,091 384,933 277,092 372,128 239,025 -35.77% Capital Outlay Equipment 5,622 - 4,521 10,500 10,500 Total Expenditures 2,870,905 3,142,261 3,426,374 3,338,935 3,450,054 3.33% Reimbursed Expenditures (538,000) (507,224) (484,715) (538,000) (538,000) Net Total Expenditures 2,332,905 2,635,037 2,941,659 2,800,935 2,912,054 3.97% Indirectly Funded Amount 2,130,966 2,427,635 2,824,118 2,596,470 2,707,589 4.28% The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks and Tree Service. 94 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $ 39,351 $ 39,649 $ 39,894 0.62% Other Services & Charges 159,702 84,460 94,550 11.95% Reimbursed Expenditures (70,000) (70,000) (70,000)0.00% $129,053 $ 54,109 $ 64,444 NET TAX AND GENERAL REVENUE SUPPORTED $129,053 $ 54,109 $ 64,444 19.10% PERSONNEL: Number of FTE positions 0.4 0.4 0.4 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 covers the entire public works complex. The buildings and equipment are maintained by in house maintenance personnel and the custodial duties by a contract cleaner. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Maintain PW building to assure a safe and comfortable environment for all City employees at the lowest cost to the taxpayer. PROGRAM: Public Works – Equipment Services PROGRAM SUMMARY The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue aggressive maintenance and repair of all city equipment. 2. Purchase 4x4 ¾ ton truck, forklift, 4x2 1 ton dump truck, tandem dump truck and swap loader as provided in the City’s Equipment Replacement Plan. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 98 $ 150 $ 150 0.00% EXPENDITURES: Personnel Services $243,233 $ 227,443 $ 227,673 0.10% Other Services & Charges 63,631 30,705 35,150 14.48% Reimbursed Expenditures (89,715) (143,000) (143,000)0.00% Capital Expenditures 4,520 10,500 10,500 0.00% $221,669 $ 125,648 $ 130,323 3.72% NET TAX AND GENERAL REVENUE SUPPORTED $221,571 $ 125,498 $ 130,173 3.73% PERSONNEL: Number of FTE positions 2.35 2.35 2.35 95 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $189,327 $ 193,311 $ 190,845 -1.28% Other Services & Charges 23,273 16,854 19,416 15.20% Reimbursed Expenditures (148,000) (148,000) (148,000)0.00% $ 64,600 $ 62,165 $ 62,261 NET TAX AND GENERAL REVENUE SUPPORTED $ 64,600 $ 62,165 $ 62,261 0.15% PERSONNEL: Number of FTE positions 1.35 1.35 1.35 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 10,261 $ 25,700 $ 25,700 0.00% Charges for Service 200 100 100 0.00% $ 10,461 $ 25,800 $ 25,800 0.00% EXPENDITURES: Personnel Services $194,779 $ 177,282 $ 177,314 0.02% Other Services & Charges $104,523 $ 35,996 $ 48,010 Reimbursed Expenditures (65,000) (65,000) (65,000)0.00% $234,302 $ 148,278 $ 160,324 8.12% NET TAX AND GENERAL REVENUE SUPPORTED $223,841 $ 122,478 $ 134,524 9.84% PERSONNEL: Number of FTE positions 1.6 1.6 1.6 FUND 101 – GENERAL FUND PROGRAM: Public Works – Administration PROGRAM SUMMARY The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks/Forestry & Streets/Traffic; Water and Sewer Utilities and Solid Waste Management. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Southwest Transitway (LRT) planning: protect city interests during construction 2. Continue to analyze and respond to opportunities to save energy and be more environmentally conscious while improving service quality and efficiency. 3. Complete aggressive 2018 program of street, utility, and park system improvements. PROGRAM: Public Works – Engineering PROGRAM SUMMARY The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as-builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to consultants involved with construction projects. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue to develop and verify utility base maps in the GIS system. 2. Complete development of an ADA Transition Plan. 3. Begin Blake Road construction in cooperation with various stakeholders and adjacent projects. 4. Oversee implementation of the City’s Capital Improvement Plan. 96 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses $ 2,341 $ 1,415 $ 1,415 0.00% Intergovernmental Revenue 84,927 170,000 170,000 0.00% Charges for Service 5,277 1,000 1,000 0.00% $ 92,545 $ 172,415 $ 172,415 0.00% EXPENDITURES: Personnel Services $539,209 $ 558,667 $ 559,152 0.09% Other Services & Charges $544,258 $ 668,180 $ 671,345 0.47% Reimbursed Expenditures (112,000) (112,000) (112,000)0.00% $971,467 $1,114,847 $1,118,497 0.33% NET TAX AND GENERAL REVENUE SUPPORTED $878,922 $ 942,432 $ 946,082 0.39% PERSONNEL: Number of FTE positions 4.06 4.06 4.06 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 2018: 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. 97 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 100 $ - $ - #DIV/0! EXPENDITURES: Personnel Services $ 81,087 $ 142,747 $ 142,444 -0.21% Other Services & Charges 64,047 81,359 78,883 -3.04% Capital Outlay - - - 0.00% $145,134 $ 224,106 $ 221,327 -1.24% NET TAX AND GENERAL REVENUE SUPPORTED $145,034 $ 224,106 $ 221,327 -1.24% PERSONNEL: Number of FTE positions 1.18 1.18 1.18 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 7,113 $ 1,500 $ 1,500 0.00% Miscellaneous 6,419 4,600 4,600 0.00% $ 13,532 $ 6,100 $ 6,100 0.00% EXPENDITURES: Personnel Services $543,553 $ 494,668 $ 494,057 -0.12% Other Services & Charges 383,446 289,669 361,458 24.78% Capital Outlay - - - 0.00% $926,999 $ 784,337 $ 855,515 9.07% NET TAX AND GENERAL REVENUE SUPPORTED $913,467 $ 778,237 $ 849,415 9.15% PERSONNEL: Number of FTE positions 5.24 5.24 5.24 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 2018: 1. Complete plowing/ice treatment operations of all city streets, alleys, parking lots and parking ramp within 10 hours. 2. Complete snow removal operations in downtown areas/ramp/parking lots in efficient manner to meet parking/traffic flow demands. 3. Increase snow/ice maintenance activities on residential streets. 4. Utilize snow emergency policy to maximize safety and snow removal efforts, while minimizing resident conflicts. 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Continue grounds maintenance of all parks including Shady Oak Beach, plus City Hall, 4 well houses, Public Works garage and all other City owned right-of-way. 2. Provide open skating and hockey at the following parks: Valley, Harley Hopkins, Oakes, Central, Interlachen, open skating only at Hilltop and Burnes. 98 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for service $ 805 $ - $ - 0.00% EXPENDITURES: Personnel Services 131,838$ 163,706$ 163,857$ 0.09% Other Services & Charges 116,596$ 123,736$ 135,507$ 9.51% $248,434 $ 287,442 $ 299,364 NET TAX AND GENERAL REVENUE SUPPORTED $247,629 $ 287,442 $ 299,364 4.15% PERSONNEL: Number of FTE positions 1.91 1.91 1.91 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 2018: 1. Trim 12% of trees on city boulevards. 2. Remove all diseased, dead, dying trees on public property. 3. Thin the public tree ash population by removing poorly sited, declining and poorly formed trees. 4. Manage an effective data base record keeping system that tracks forestry activities to better manage and maintain public trees. 5. Provide for prompt customer service on requests for trimming and tree consultation 99 CITY OF HOPKINS RECREATION BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Expenditures Salaries, Wages and Benefits Salaries and Wages 271,400 51,091 57,159 79,191 79,191 Fringe Benefits 7,140 4,683 5,320 7,808 7,849 0.53% Materials, Supplies and Services Operations 164,309 176,921 157,025 172,605 172,000 -0.35% Supplies and Materials 650 -2,132 250 3,364 1245.60% Total Expenditures 443,499 232,695 221,636 259,854 262,404 0.98% Indirectly Funded Amount 443,499 232,695 221,636 259,854 262,404 0.98% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 100 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 31,259$ 22,755$ 22,762$ 0.03% NET TAX AND GENERAL REVENUE SUPPORTED 31,259$ 22,755$ 22,762$ 0.03% PERSONNEL: Number of Part-time positions 22 22 22 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 10,091$ 31,618$ 31,636$ 0.06% NET TAX AND GENERAL REVENUE SUPPORTED 10,091$ 31,618$ 31,636$ 0.06% PERSONNEL: Number of Part-time positions 30 30 30 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 2018: 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. 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 2018: 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. 101 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 15,676$ 27,162$ 27,173$ 0.04% NET TAX AND GENERAL REVENUE SUPPORTED 15,676$ 27,162$ 27,173$ 0.04% PERSONNEL: Number of Part-time positions 8 8 8 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 2018: 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 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Other Services & Charges 157,025$ 169,500$ 172,000$ 1.47% NET TAX AND GENERAL REVENUE SUPPORTED 157,025$ 169,500$ 172,000$ 1.47% PERSONNEL: Number of Part-time positions 90 90 90 102 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 2018: 1. To operate the park under a contractual operating agreement with 3rd 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 5,453$ 5,464$ 5,469$ 0.09% Other Services & Charges 2,132$ 3,355$ 3,364$ 0.27% $ 7,585 $ 8,819 $ 8,833 NET TAX AND GENERAL REVENUE SUPPORTED $ 7,585 $ 8,819 $ 8,833 0.16% PERSONNEL: Number of FTE positions 0.05 0.05 0.05 103 CITY OF HOPKINS ACTIVITY CENTER BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Charges for Services $104,678 $66,341 $85,043 $67,000 $71,500 6.72% Contributions 14,417 16,162 20,454 9,500 10,000 5.26% Total Revenues 119,095 82,503 105,497 76,500 81,500 6.54% Expenditures Salaries, Wages and Benefits Salaries and Wages 190,807 188,327 213,893 196,329 196,849 0.26% Fringe Benefits 68,037 70,519 79,158 74,502 74,567 0.09% Materials, Supplies and Services Professional & Technical Services 58,016 29,376 44,740 36,900 41,700 13.01% Utilities and Maintenance 23,238 30,909 37,908 39,000 45,100 15.64% Operations 10,755 11,748 12,411 13,490 18,239 35.20% City Support Services 10,165 13,567 12,406 13,797 12,941 -6.20% Supplies and Materials 17,768 20,208 20,061 23,510 28,010 19.14% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - -10,255 10,400 2,500 -75.96% Other Equipment - -3,659 - - Total Expenditures 378,786 364,654 434,491 407,928 419,906 2.94% Indirectly Funded Amount 259,691 282,151 328,994 331,428 338,406 2.11% The Activity Center Department is made up of two programs. They are Community Use and Maintenance. 104 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Rent $ 24,477 $ 26,000 $ 26,000 0.00% Charges for Service 60,566 30,000 35,000 16.67% Miscellaneous 20,453 20,500 20,500 0.00% $105,496 $ 76,500 $ 81,500 6.54% EXPENDITURES: Personnel Services $273,377 $251,058 $251,623 0.23% Other Services & Charges 79,468 84,439 92,238 9.24% Capital Expenditures 13,915 $366,760 $335,497 $343,861 2.49% NET TAX AND GENERAL REVENUE SUPPORTED $261,264 $258,997 $262,361 1.30% PERSONNEL: Number of FTE positions 3.0 3.0 3.0 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services 19,674$ 19,773$ 19,793$ 0.10% Other Services & Charges 48,058 52,657 56,249 6.82% $ 67,732 $ 72,430 $ 76,042 NET TAX AND GENERAL REVENUE SUPPORTED $ 67,732 $ 72,430 $ 76,042 4.99% PERSONNEL: Number of FTE positions 0.2 0.2 0.2 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Facility enhancements: Roofs 2. Update our registration system so that all registration and payments can be made online 3. Market the Hopkins Activity Center to the over 50 Hopkins population, especially through electronic media. 4. Work with the Hopkins festivals and special events committees to promote events for the over 50 population. 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 2018: 1. Roof Replacement 105 CITY OF HOPKINS PLANNING BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Permits and Licenses $ 1,280 $ 1,160 $ 1,060 $ 1,000 $ 1,000 Charges for Services 6,350 2,465 2,300 2,500 2,500 Miscellaneous - -95,460 94,695 --100.00% Total Revenues 7,630 3,625 98,820 98,195 3,500 -96.44% Expenditures Salaries, Wages and Benefits Salaries and Wages 103,418 142,150 113,425 108,835 108,835 Fringe Benefits 36,301 23,132 30,438 44,398 44,423 0.06% Materials, Supplies and Services Professional & Technical Services 578 5,523 65,183 99,695 35,000 -64.89% Utilities and Maintenance 127 125 119 250 150 -40.00% Operations 8,690 8,006 9,631 10,735 25,135 134.14% City Support Services 3,600 968 964 964 1,031 6.95% Supplies and Materials 1,576 1,425 1,816 2,000 2,200 10.00% Total Expenditures 154,289 181,331 221,576 266,877 216,774 -18.77% Reimbursed Expenditures (20,000) (20,000) (20,000) (20,000) (20,000) Net Total Expenditures 134,289 161,331 201,576 246,877 196,774 -20.29% Indirectly Funded Amount 126,659 157,706 102,756 148,682 193,274 29.99% The Planning and Economic Development Department is made up of three programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 106 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Licenses & Permits $ 1,060 $ 1,000 $ 1,000 0.00% Charges for Services $ 2,300 $ 2,500 $ 2,500 0.00% Miscellaneous $ 95,460 $ 94,695 $ - -100.00% $ 98,820 $ 98,195 $ 3,500 -96.44% EXPENDITURES: Personnel Services $143,864 $153,233 $153,258 0.02% Other Services & Charges 77,714 113,644 63,516 -44.11% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $201,578 $246,877 $196,774 -20.29% NET TAX AND GENERAL REVENUE SUPPORTED $102,758 $148,682 $193,274 29.99% PERSONNEL: Number of FTE positions 1.35 1.35 1.35 107 CITY OF HOPKINS COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Miscellaneous $- $- $- $90,000 $90,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 63,403 64,890 69,385 87,225 87,225 Fringe Benefits 22,356 23,546 23,671 33,159 33,173 0.04% Materials, Supplies and Services Professional & Technical Services 1,786 1,336 980 750 2,550 240.00% Operations 139 34 848 2,515 2,525 0.40% City Support Services 1,417 305 321 321 345 7.48% Supplies and Materials 1,285 430 652 850 1,050 23.53% Total Expenditures 90,387 90,541 95,857 124,820 126,868 1.64% Indirectly Funded Amount $90,387 $90,541 $95,857 $34,820 $36,868 5.88% The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. 108 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 support of housing programs such as 1st Time Home Buyer Mortgage Program, Image Awards, Housing Improvement Areas and Livable Communities Program. Assist in implementation of the Engaging Raspberry Renters project. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Miscellaneous $ - $ 90,000 $ 90,000 0.00% EXPENDITURES: Personnel Services $ 93,056 $120,384 $120,398 0.01% Other Services & Charges 2,800 4,436 6,470 45.85% $ 95,856 $124,820 $126,868 NET TAX AND GENERAL REVENUE SUPPORTED $ 95,856 $ 34,820 $ 36,868 5.88% PERSONNEL: Number of FTE positions 0.85 0.85 0.85 109 CITY OF HOPKINS Special Revenue Fund 204 Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Intergovernmental $ 72,090 $ 90,780 $ 94,110 $ 60,000 $ 60,000 Miscellaneous 4,901 - - - - Refunds & Reimbursements 740 - - - - Total Revenues 77,731 90,780 94,110 60,000 60,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 36,412 32,175 37,460 32,327 32,327 Materials, Supplies and Services Professional & Technical Services 2,717 2,000 2,635 2,000 2,000 Utilities and Maintenance 4,098 6,163 371 5,141 5,141 Operations 15,278 28,996 24,020 5,520 5,520 Leases 8,726 8,678 4,552 6,560 6,560 City Support Services 3,340 2,718 1,968 2,112 2,112 Supplies and Materials 26,998 16,360 23,346 6,340 6,340 Capital Outlay Computers - - - - - Other Equipment - - - - - Total Expenditures 97,569 97,088 94,352 60,000 60,000 Excess (deficiency) of revenue over expenditures (19,838) (6,308) (242) - - STATE CHEMICAL ASSESSMENT BUDGET Revenues and Expenditures The State Chemical Assessment is supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. 110 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Intergovernmental Revenue $ 94,110 $ 60,000 $ 60,000 0.00% EXPENDITURES: Personnel Services $ 37,460 $ 32,327 $ 32,327 0.00% Other Services & Charges 56,893 27,673 27,673 0.00% $ 94,353 $ 60,000 $ 60,000 NET TAX AND GENERAL REVENUE SUPPORTED $ 243 $ - $ - -- PERSONNEL: Number of FTE positions 0 0 0 111 CITY OF HOPKINS Special Revenue Fund 205 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Property Taxes $439,918 $481,725 $449,135 $310,900 $332,031 -26.07% Intergovernmental 171,875 50,000 35,276 - - Interest earnings 40,422 35,052 27,889 30,000 15,000 -46.22% Miscellaneous 46,040 106,676 153,239 40,300 55,000 Total Revenues 698,255 673,454 665,539 381,200 402,031 Expenditures Salaries, Wages and Benefits Salaries and Wages 147,151 149,030 176,620 125,677 130,704 4.00% Fringe Benefits 45,825 40,926 54,224 43,199 44,931 4.01% Materials, Supplies and Services Professional & Technical Services 80,769 100,444 82,125 48,850 57,050 16.79% Utilities and Maintenance 735 934 776 1,170 1,170 Operations 24,811 324,733 77,456 7,300 11,300 54.79% City Support Services 22,819 24,037 5,947 22,351 6,096 -72.73% Supplies and Materials 1,610 1,732 26,769 1,900 24,449 1186.79% Grant Expenditures 138,629 102,886 176,185 - 10,000 Operating Transfer In (Out)- - - - - 462,349 744,721 600,102 250,447 285,700 Total Expenditures 462,349 744,721 600,102 250,447 285,700 14.08% Reimbursed Expenditures (40,000) (40,000) (40,000) (40,000) (40,000) Net Total Expenditures 422,349 704,721 560,102 210,447 245,700 16.75% Excess (deficiency) of Revenues over Expenditures 275,907 (31,267) 105,437 170,753 156,331 -8.45% Revenues and Expenditures ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 112 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Property Taxes $ 449,135 $ 310,200 $ 332,037 7.04% Intergovernmental Revenue 35,276 25,000 25,000 0.00% Interest 27,889 15,000 15,000 0.00% Miscellaneous 153,239 15,700 15,000 -4.46% $ 665,539 $ 365,900 $ 387,037 5.78% EXPENDITURES: Personnel Services $ 100,527 $ 69,123 $ 71,889 4.00% Other Services & Charges 71,334 38,717 54,992 42.04% Transfer Out - - - #DIV/0! $ 171,861 $ 107,840 $ 126,881 17.66% NET TAX AND GENERAL REVENUE SUPPORTED $(493,678) $(258,060) $(260,156)0.81% PERSONNEL: Number of FTE positions 0.65 0.65 0.65 FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Project Development and Coordination PROGRAM SUMMARY Undertake development activities not directly funded by specific project budgets. Meet with developers, property owners and business tenants to review possible redevelopment/development activities. Recruit desirable businesses to locate in Hopkins. Explore developer incentives aimed at promoting sustainability and active living. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Monitor income/expenditure of Economic Development fund. 2. Prepare program budget. 3. Facilitate redevelopment projects as directed by the City Council. 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 2018: 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Personnel Services $ 66,000 $ 49,717 $ 51,707 4.00% Other Services & Charges 8,804 9,804 10,018 2.18% Reimbursed Expenditures (40,000) (40,000) (40,000)0.00% $ 34,804 $ 19,521 $ 21,725 NET TAX AND GENERAL REVENUE SUPPORTED $ 34,804 $ 19,521 $ 21,725 11.29% PERSONNEL: Number of FTE positions 0.5 0.5 0.5 113 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 2018: 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 five of Hopkins Artstreet. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Interest $ - $ - $ - #DIV/0! Intergovernmental revenue $ - $ - $ - #DIV/0! Miscellaneous - 300 - -100.00% $ - $ 300 $ - -100.00% EXPENDITURES: Personnel Services $ 64,316 $ 50,036 $ 52,039 4.00% Other Services & Charges 289,121 33,050 45,056 36.33% $ 353,437 $ 83,086 $ 97,095 16.86% NET TAX AND GENERAL REVENUE SUPPORTED $ 353,437 $ 82,786 $ 97,095 17.28% PERSONNEL: Number of FTE positions 0.25 0.45 0.45 114 CITY OF HOPKINS Special Revenue Fund 211 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Tax Increment $58,173 $58,172 $30,024 $30,000 $29,500 -1.67% Interest 1,757 1,036 1,915 1,000 500 -50.00% Transfers In - - - Expenditures Materials, Supplies and Services Professional & Technical Services 596 1,462 1,436 1,500 3,000 100.00% Operations 12,538 7,178 2,000 11,742 10,242 -12.77% Total Expenditures 13,135 8,640 3,436 13,242 13,242 Transfers out for debt - - - - - Total Expenditures 13,135 8,640 3,436 13,242 13,242 Excess (deficiency) of Revenues over Expenditures 46,795 50,568 28,503 17,758 16,758 -5.63% Revenues and Expenditures TIF DISTRICT 1-2 BUDGET 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. 115 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 11th and 12th Avenues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Tax Increments $ 30,024 $ 30,000 $ 29,500 -1.67% Interest 1,915 1,000 500 -50.00% $ 31,939 $ 31,000 $ 30,000 -3.23% EXPENDITURES: Other Services & Charges $ 8,371 $ 13,242 $ 13,242 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ (23,568) $ (17,758) $ (16,758)-5.63% PERSONNEL: Number of FTE positions 0 0 0 116 CITY OF HOPKINS Special Revenue Fund 215 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Court Fines $15,767 $21,876 $21,155 $22,000 $22,000 Leased Parking 119,577 109,754 177,382 120,000 126,000 5.00% Interest Earned 2,476 1,125 2,054 2,500 2,500 Transfer In - 443,000 - - - Total Revenues 137,820 575,755 200,591 144,500 150,500 4.15% Expenditures Salaries, Wages and Benefits Salaries and Wages 40,557 39,947 54,035 44,039 45,801 4.00% Fringe Benefits 7,039 17,404 21,904 18,880 19,637 4.01% Materials, Supplies and Services Professional & Technical Services 7,890 3,948 3,115 6,150 9,350 52.03% Utilities and Maintenance 31,384 8,002 9,642 14,025 14,085 0.43% Operations 325 925 7,433 750 7,936 958.13% City Support Services 17,499 23,315 8,787 21,534 9,178 -57.38% Supplies and Materials 645 298 6,337 5,550 7,543 35.91% Capital Outlay Other Improvements 95,875 438,404 38,956 - - Total Expenditures 201,214 532,242 150,209 110,928 113,530 2.35% Excess (deficiency) of Revenues over Expenditures (63,394) 43,513 50,382 33,572 36,970 10.12% Revenues and Expenditures PARKING BUDGET 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. 117 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Fines & Forfeits $ 21,155 $ 22,000 $ 22,000 0.00% EXPENDITURES: Personnel Services $ 58,905 $ 59,361 $ 61,737 4.00% Other Services & Charges 11,906 17,554 17,779 1.28% $ 70,811 $ 76,915 $ 79,516 NET TAX AND GENERAL . REVENUE SUPPORTED $ 49,656 $ 54,915 $ 57,516 4.74% PERSONNEL: Number of FTE positions 0.72 0.72 0.72 FUND 214 – PARKING FUND PROGRAM: Parking Enforcement PROGRAM SUMMARY Manage and enforce parking rules and regulations. Ensure that parking is available for customers and parking rules are followed. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Monitor the effects of current parking enforcement efforts and recommend changes as needed. 2. Continue to accurately account for fine revenues that result from parking enforcement. PROGRAM: Parking Operations PROGRAM SUMMARY Implement and manage parking recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Update parking brochure. 2. Promote marketing plan for permit parking and municipal ramp. 3. Review funding options for future maintenance of public lots. 4. Maintain and improve public parking lots as needed. 5. W ork with Public Works Department to complete analysis of public parking lots FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Leases $ 177,382 $ 120,000 $ 126,000 5.00% Interest 2,054 1,000 2,500 150.00% $ 179,436 $ 121,000 $ 128,500 6.20% EXPENDITURES: Personnel Services $ 17,034 $ 3,558 $ 3,701 4.02% Other Services & Charges 1,282 1,712 1,719 0.41% $ 18,316 $ 5,270 $ 5,420 2.85% NET TAX AND GENERAL REVENUE SUPPORTED $(161,120) $(115,730) $(123,080)6.35% PERSONNEL: Number of FTE positions 0.01 0.01 0.01 118 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change EXPENDITURES: Other Services & Charges 22,129 28,743 28,595 -0.51% Capital Expenditures 38,956 - - -- $ 61,085 $ 28,743 $ 28,595 NET TAX AND GENERAL REVENUE SUPPORTED $ 61,085 $ 28,743 $ 28,595 -0.51% PERSONNEL: Number of FTE positions 0 0 0 119 CITY OF HOPKINS Special Revenue Fund 218 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Franchise Fees $266,366 $273,105 $274,485 $263,000 $263,000 Charges for Services - 12,494 9,771 - - Proceeds from Sale of Assets - - - - Interest Earned 6,207 5,126 4,801 6,200 6,200 Total Revenue 272,573 290,725 289,057 269,200 269,200 Expenditures Salaries, Wages and Benefits Salaries and Wages 59,003 62,580 66,056 73,000 75,920 4.00% Fringe Benefits 13,112 12,455 21,509 27,854 28,986 4.07% Materials, Supplies and Services Professional & Technical Services 7,984 34,215 26,806 34,250 24,250 -29.20% Utilities and Maintenance 21,658 27,151 990 1,650 1,650 Operations 19,728 26,870 25,324 24,800 24,800 City Support Services 10,987 12,476 4,295 14,123 15,890 12.51% Supplies and Materials 313 1,455 11,082 650 650 Capital Outlay Equipment 8,558 28,223 10,468 26,500 26,500 Transfer Out 86,920 86,920 86,920 86,920 86,920 Total Expenditures 228,264 292,346 253,450 289,747 285,566 -1.44% Excess (deficiency) of Revenues over Expenditures 44,309 (1,621) 35,607 (20,547) (16,366) -20.35% Revenues and Expenditures COMMUNICATIONS BUDGET 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for Services $ 9,771 $ - $ - Franchise Fees 274,485 263,000 - -100.00% Interest 4,801 6,200 - -100.00% $ 289,057 $ 269,200 $ - -100.00% EXPENDITURES: Personnel Services $ 87,565 $ 100,854 $ - -100.00% Other Services & Charges 68,498 75,473 - -100.00% Capital Expenditures 10,468 26,500 - -100.00% Transfer Out 86,920 86,920 - -100.00% $ 253,451 $ 289,747 $ - -100.00% NET TAX AND GENERAL REVENUE SUPPORTED $ (35,606) $ 20,547 $ - -100.00% PERSONNEL: Number of FTE positions 0.25 0.25 1.25 121 CITY OF HOPKINS Special Revenue Fund 220 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Intergovernmental $15,000 $15,000 $15,000 $15,000 $15,000 Leases and Rentals 74,654 75,576 68,886 68,000 58,000 -14.71% Concessions & Merchandise Sales 260,413 250,278 244,869 232,500 246,500 6.02% Donations & Contributions 702 3,553 1,130 2,500 1,500 -40.00% Interest (14) 136 - - Miscellaneous 15,302 15,653 16,501 15,000 16,000 Transfer In 10,000 15,000 15,000 15,000 15,000 Total Revenues 376,057 375,196 361,386 348,000 352,000 1.15% Expenditures Salaries, Wages and Benefits Salaries and Wages 164,353 170,045 169,298 157,276 176,564 12.26% Fringe Benefits 53,834 53,884 52,269 50,785 54,469 7.25% Materials, Supplies and Services Professional & Technical Services 10,730 10,759 17,414 9,300 14,450 55.38% Utilities and Maintenance 13,568 15,823 14,778 10,800 9,600 -11.11% Operations 7,747 14,877 12,959 15,950 14,345 -10.06% City Support Services 5,320 5,289 775 4,125 775 -81.21% Supplies and Materials 95,999 98,046 92,384 94,800 97,550 2.90% Total Expenditures 351,552 368,723 359,877 343,036 367,753 7.21% Excess (deficiency) of Revenues over expenditures 24,505 6,473 1,509 4,964 (15,753) -417.34% Revenues and Expenditures DEPOT BUDGET 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 FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Intergovernmental $ 65,605 $ 67,500 $ 66,500 -1.48% Charges for Service 22,749 20,500 20,500 0.00% Miscellaneous 15,000 15,000 15,000 0.00% Tranfer In 15,000 15,000 15,000 0.00% $118,354 $ 118,000 $ 117,000 -0.85% EXPENDITURES: Personnel Services $ 97,814 $ 88,878 $ 98,540 10.87% Other Services & Charges 28,691 30,625 27,975 -8.65% Capital Expenditures - - - 0.00% $126,505 $ 119,503 $ 126,515 5.87% NET TAX AND GENERAL REVENUE SUPPORTED $ 8,151 $ 1,503 $ 9,515 533.07% PERSONNEL: Number of FTE positions 1.5 1.0 1.0 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 2018: 1. Sustain welcoming and chemical free venue for community youth and other gatherings. 2. Continue staffing 2 – 3 night a week year -round youth events programming at the Depot. 3. Support additional youth-initiated projects. 4. Provide learning lab for Business/Marketing classes at Hopkins High School. 5. Promote partnerships with the Depot in the community, with area students, and youth allies. 6. Create new youth learning opportunities with Coffee Operations staff. 7. Provide workplace training and employment opportunities for youth. 8. Continue capital upgrades with furnishings 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Charges for Service $217,589 $ 227,000 $ 235,000 3.52% EXPENDITURES: Personnel Services $123,753 $ 119,183 $ 132,493 11.17% Other Services & Charges 109,620 104,350 108,745 4.21% $233,373 $ 223,533 $ 241,238 7.92% NET TAX AND GENERAL REVENUE SUPPORTED $ 15,784 $ (3,467) $ 6,238 -279.93% PERSONNEL: Number of FTE positions 1 1 1 124 CITY OF HOPKINS Special Revenue Fund 228 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Tax Increment $12,587 $14,504 $15,382 $12,000 $14,000 16.67% Interest 20 21 9 - - Miscellaneous 7,024 4,520 7,024 7,000 -0.34% Transfers In 21,870 24,108 21,125 - Total Revenues 41,501 43,153 15,391 40,149 21,000 -47.69% Expenditures Materials, Supplies and Services Professional & Technical Services 528 1,384 955 1,350 1,350 Operations 1,375 1,500 1,500 1,500 1,500 Interest Expense 6,910 5,518 - 4,126 4,126 Total Expenditures 8,813 8,402 2,455 6,976 6,976 Excess of Revenues over Expenditures 32,688 34,751 12,936 33,173 14,024 -57.72% Revenues and Expenditures TIF DISTRICT 2-6 BUDGET 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: Sonoma Handicap Housing Project PROGRAM SUMMARY Coordinate redevelopment of northwest corner of 5th Avenue and Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Tax Increments $ 15,382 $ 12,000 $ 14,000 16.67% Miscellaneous $ - $ 7,024 $ 7,000 Interest 9 - - #DIV/0! Tranfer In - 21,125 - -100.00% $ 15,391 $ 40,149 $ 21,000 -47.69% EXPENDITURES: Other Services & Charges $ 2,455 $ 6,976 $ 6,975 -0.01% NET TAX AND GENERAL REVENUE SUPPORTED $ (12,936) $ (33,173) $ (14,025)-57.72% PERSONNEL: Number of FTE positions 0 0 0 126 CITY OF HOPKINS Special Revenue Fund 231 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Tax Increment $2,597,340 $2,751,506 $1,921,687 $2,400,000 $2,400,000 Interest 42,139 26,981 42,129 8,000 8,000 Miscellaneous - - - Total Revenues 2,639,479 2,778,487 1,963,816 2,408,000 2,408,000 Expenditures Materials, Supplies and Services Professional & Technical Services 17,557 15,396 21,683 12,800 13,000 1.56% Operations 42,197 46,440 47,540 47,540 47,540 Debt Service 450,352 389,098 223,101 400,000 400,000 Capital Outlay TIF projects - - - Transfers out 188,000 818,108 1,330,125 1,179,700 -11.31% Total Expenditures 698,107 1,269,042 292,324 1,790,465 1,640,240 -8.39% Excess (deficiency) of Revenues over Expenditures 1,941,372 1,509,445 1,671,492 617,535 767,760 24.33% Revenues and Expenditures TIF DISTRICT 2-11 BUDGET 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Tax Increments $ 1,921,687 $ 2,400,000 $ 2,400,000 0.00% Interest 42,129 8,000 - -100.00% $ 1,963,816 $ 2,408,000 $ 2,400,000 -0.33% EXPENDITURES: Other Services & Charges $ 69,223 $ 60,040 $ 60,040 0.00% Debt Service - PAYG TIF $ 223,101 $ 400,500 $ 400,500 0.00% Transfer Out - 1,330,125 1,179,700 -11.31% $ 292,324 $ 1,790,665 $ 1,640,240 -8.40% NET TAX AND GENERAL REVENUE SUPPORTED $(1,671,492) $ (617,335) $ (759,760)23.07% PERSONNEL: Number of FTE positions 0 0 0 Super Valu Development Excelsior Crossings Development 128 CITY OF HOPKINS Special Revenue Fund 232 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Tax Increments $- $- $- $- $- Interest (2,444) - - - - Development Fees - - - - - Other Miscellaneous - - - - - Transfer In - - - - - Total Revenues (2,444) - - - - Expenditures Materials, Supplies and Services Professional & Technical Services 1,833 2,000 2,000 2,000 2,000 Miscellaneous Other Charges - - - - - Capital Outlay TIF Projects - - - - - Total Expenditures 1,833 2,000 2,000 2,000 2,000 Excess of Revenues over Expenditures $(4,277) $(2,000) $(2,000) $(2,000) $(2,000) Revenues and Expenditures 5TH AVENUE FLATS 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 FUND 232 – 5TH AVENUE FLATS PROGRAM: Redevelopment Area –6th & Mainstreet PROGRAM SUMMARY Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Work with developer on project implementation. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change 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 positions 0 0 0 Proposed Fifth Avenue Flats project 130 CITY OF HOPKINS Special Revenue Fund 234 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Tax Increments $119,176 $133,125 $179,889 $122,000 $125,000 2.46% Interest 17 8 53 100 -100.00% Transfers In - - - Total Revenues 119,193 133,133 179,942 122,100 125,000 2.38% Expenditures Materials, Supplies and Services Professional & Technical Services 8,055 4,820 1,306 5,950 3,000 -49.58% Miscellaneous 11,023 - 3,000 - 3,000 PAYG Note 55,068 62,516 231,850 115,000 109,000 Total Expenditures 74,146 67,336 236,156 120,950 115,000 -4.92% Excess of Revenues over Expenditures $45,048 $65,797 $(56,214) $1,150 $10,000 769.57% Revenues and Expenditures TIF 1-4 MARKETPLACE II 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. 131 CITY OF HOPKINS FUND 233 – TAX INCREMENT 1-4 FUND PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY Redevelopment of property between 6th and 8th Avenues into mixed-use apartment, townhome & retail development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Tax Increments $ 179,889 $ 125,000 $ 125,000 0.00% Miscellaneous 53 - - #DIV/0! $ 179,942 $ 125,000 $ 125,000 0.00% EXPENDITURES: Other Services & Charges $ 236,157 $ 120,950 $ 115,000 -4.92% NET TAX AND GENERAL REVENUE SUPPORTED $ 56,215 $ (4,050) $ (10,000)146.91% PERSONNEL: Number of FTE positions 0 0 0 132 CITY OF HOPKINS Special Revenue Fund 251 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Current Services $83,587 $138,018 $243,665 $250,000 $250,000 Grants 73,353 35,210 32,502 35,597 41,000 15.18% Current Services 358,491 372,249 501,250 382,817 547,906 43.12% Other Revenues 175,043 496,258 44,395 180,400 49,800 -72.39% Transfers In 86,920 86,920 86,920 86,920 86,920 Total Revenues 777,393 1,128,656 908,732 935,734 975,626 4.26% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 300,823 318,588 335,778 306,495 366,148 19.46% Fringe Benefits 95,595 86,301 79,962 114,265 92,191 -19.32% Materials, Supplies and Services Professional & Technical Services 150,676 174,717 147,976 176,556 187,550 6.23% Utilities and Maintenance 79,923 86,610 77,438 96,300 80,500 -16.41% Operations 71,109 90,018 81,835 98,000 102,219 4.31% City Support Services 16,175 10,518 5,400 10,889 5,500 -49.49% Supplies and Materials 35,940 27,008 29,951 33,800 27,300 -19.23% Capital Outlay Improvements 10,169 130,166 330,557 398,200 131,500 Total Expenses 760,408 923,926 1,088,897 1,234,505 992,908 -19.57% Excess (deficiency) of Revenues over Expenditures 16,985 204,729 (180,165) (298,771) (17,282) -94.22% ARTS CENTER Revenues and Expenditures The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 133 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Taxes $ 243,665 $ 250,000 $ 250,000 0.00% Intergovernmental 32,502 35,597 41,000 15.18% Charges for Service 501,250 529,017 524,907 -0.78% Miscellaneous 44,395 34,200 72,800 112.87% Tranfer In 86,920 86,920 86,920 0.00% $ 908,732 $ 935,734 $ 975,627 4.26% EXPENDITURES: Personnel Services $ 415,740 $ 420,760 $ 458,339 8.93% Other Services & Charges 342,600 415,545 403,069 -3.00% Capital Expenditures 330,557 398,200 131,500 $ 1,088,897 $ 1,234,505 $ 992,908 -19.57% NET TAX AND GENERAL REVENUE SUPPORTED $ 180,165 $ 298,771 $ 17,282 -94.22% PERSONNEL: Number of FTE positions 3.8 3.8 3.8 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 2018: 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. 134 CITY OF HOPKINS Internal Service Fund 603 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Current Services $345,477 $408,459 $445,220 $445,220 $489,742 10.00% Intergovernmental Revenue 237,120 - - - - Interest Earnings 6,023 5,426 3,000 5,300 3,000 -43.40% Miscellaneous 27,535 121,543 30,000 30,000 30,000 Transfers In -1,896,571 - - - Total Revenues 616,155 2,432,000 478,220 480,520 522,742 8.79% Operating Expenses Materials, Supplies and Services 17,008 19,551 20,000 45,290 126.45% Professional & Technical Services 2,000 2,000 2,500 2,500 25,000 900.00% Utilities and Maintenance 45,525 48,839 3,411 1,200 1,200 City Support Services 6,744 7,350 7,350 7,350 7,350 Total Operating Expenses 71,276 77,740 13,261 31,050 78,840 153.91% Non-operating expenses 484,826 476,729 662,712 474,383 670,000 41.24% Total Expenses 556,103 554,469 675,973 505,433 748,840 48.16% Net Income (Loss)60,053 1,877,531 (197,753) (24,913) (226,098) 807.56% Capital 1,134,325 746,316 1,653,540 1,859,200 Revenues and Expenses EQUIPMENT REPLACEMENT BUDGET 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. 135 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change REVENUES: Intergovernmental Revenue $0 $0 $0 0.00% Charges for Service 445,220 445,220 489,742 10.00% Interest 3,000 5,300 3,000 -43.40% Miscellaneous 30,000 30,000 30,000 0.00% Transfer In 0 0 0 0.00% 478,220 480,520 522,742 8.79% EXPENDITURES: Other Services & Charges 19,534 31,050 78,840 153.91% Depreciation 656,892 470,000 470,000 0.00% Debt Service 54,217 4,383 200,000 4463.08% 730,643 505,433 748,840 48.16% NET SOURCE (USE) OF EQUITY ($252,423) ($24,913) ($226,098)807.55% Capital Purchases $1,653,540 $1,859,200 $990,650 -46.72% PERSONNEL: Number of FTE positions 0 0 0 136 CITY OF HOPKINS Enterprise Fund 703 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Current Services $1,358,246 $1,265,795 $1,683,816 $2,047,405 $1,985,085 -3.04% Intergovernmental Revenue - - - Permits 2,467 2,142 - 2,000 2,000 Interest Earnings 2,631 2,459 652 - - Miscellaneous 152,898 152,801 147,809 160,000 160,000 Total Revenues 1,516,242 1,423,197 1,832,277 2,209,405 2,147,085 -2.82% Non-operating Revenues 496,275 930,348 930,348 - - Total Revenues 2,012,517 2,353,545 2,762,625 2,209,405 2,147,085 -2.82% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 401,427 327,120 378,534 256,944 266,462 3.70% Fringe Benefits 122,463 109,899 131,977 95,856 100,573 4.92% Materials, Supplies and Services Professional & Technical Services 125,414 183,912 144,088 131,900 138,600 5.08% Utilities and Maintenance 379,449 554,391 397,574 659,800 611,400 -7.34% Operations 13,227 23,253 28,834 22,050 36,769 66.75% City Support Services 231,161 224,927 230,535 230,003 229,384 -0.27% Supplies and Materials 108,851 89,015 89,733 107,400 102,600 -4.47% Depreciation 241,636 250,000 303,241 250,000 307,547 23.02% Total Operating Expenses 1,623,627 1,762,517 1,704,516 1,753,953 1,793,335 2.25% Non-operating expenses 119,755 240,486 84,987 136,962 187,475 36.88% Total Expenses 1,743,382 2,003,003 1,789,503 1,890,915 1,980,810 4.75% Net Income (Loss)269,135 350,542 973,122 318,490 166,275 -47.79% - WATER BUDGET Revenues and Expenses The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 137 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 2018: 1. Produce water supply sufficient to meet the needs of 19,000 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. Install new valves & hydrants in new construction areas. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$1,683,816 $2,049,405 $1,987,086 -3.04% OPERATING EXPENSES: Personnel Services 510,512 352,800 367,035 4.03% Other Services & Charges 890,593 1,151,153 1,132,753 -1.60% Depreciation Expense 303,421 250,000 250,000 0.00% Operating Income (Loss)1,704,526 1,753,953 1,749,788 -0.24% NON-OPERATING REVENUES:148,461 160,000 160,000 0.00% NON-OPERATING EXPENSES:(84,987) (136,962) (231,022) 68.68% NET INCOME (LOSS)$42,764 $318,490 $166,276 47.79% Capital Outlay/Construction $0 $1,922,000 $0 -100.00% PERSONNEL: Number of FTE positions 3.43 3.43 3.43 138 CITY OF HOPKINS Enterprise Fund 707 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Current Services $2,172,278 $2,045,107 $2,669,872 $2,932,504 $3,088,299 5.31% Intergovernmental Revenue -92,190 - -#DIV/0! Permits - - - -#DIV/0! Interest Earnings 2,415 2,368 2,727 - - #DIV/0! Miscellaneous Revenue 150 9,926 15,851 - - #DIV/0! Total Revenues 2,174,842 2,149,592 2,688,450 2,932,504 3,088,299 5.31% Non-operating revenue 297,004 9,776 - - -#DIV/0! Total Revenues 2,471,846 2,159,368 2,688,450 2,932,504 3,088,299 5.31% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 212,389 159,371 184,074 270,732 293,561 8.43% Fringe Benefits 74,183 63,249 68,509 97,985 102,824 4.94% Materials, Supplies and Services Professional & Technical Services 38,027 70,423 110,228 135,000 140,000 3.70% Utilities and Maintenance 47,400 96,278 93,249 163,300 174,120 6.63% Operations 1,327,190 1,456,613 1,372,063 1,502,523 1,507,524 0.33% City Support Services 143,573 174,471 177,266 178,530 182,586 2.27% Supplies and Materials 17,450 21,599 17,539 35,100 29,600 -15.67% Depreciation 174,826 170,000 238,212 170,000 203,056 19.44% Total Operating Expenses 2,035,037 2,212,004 2,261,140 2,553,170 2,633,271 3.14% Non-operating expenses 96,460 109,557 220,552 117,727 112,931 -4.07% Total Expenses 2,131,497 2,321,561 2,481,692 2,670,897 2,746,202 2.82% Net Income (Loss)340,349 (162,194)206,758 261,607 342,097 30.77% SANITARY SEWER BUDGET Revenues and Expenses The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 139 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 2018: 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. Emergency generators maintenance program. FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$2,669,872 $2,932,504 $3,088,299 5.31% OPERATING EXPENSES: Personnel Services 252,584 368,717 396,385 7.50% Other Services & Charges 1,770,346 2,014,453 2,033,830 0.96% Depreciation Expense 202,237 170,000 170,000 0.00% Operating Income (Loss)2,225,167 2,553,170 2,600,215 1.84% NON-OPERATING REVENUES:18,578 0 0 #DIV/0! NON-OPERATING EXPENSES:(56,211) (117,727) (145,987) 24.00% NET INCOME (LOSS)$407,072 $261,607 $342,097 30.77% Capital Outlay/Construction $0 $1,831,000 $0 -100.00% PERSONNEL: Number of FTE positions 3.46 3.76 3.76 140 CITY OF HOPKINS Enterprise Fund 717 Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Current Services $915,728 $ 955,636 $ 963,203 $ 964,900 $ 968,000 0.32% County Grant 27,956 27,070 24,750 26,000 26,000 Interest Earnings 10,782 9,334 9,652 - - Miscellaneous 12,219 21,094 16,389 16,500 16,500 Total Revenues 966,685 1,013,134 1,013,994 1,007,400 1,010,500 0.31% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 201,820 207,263 232,271 263,971 273,637 3.66% Fringe Benefits 64,574 65,489 76,885 92,683 96,334 3.94% Materials, Supplies and Services Professional & Technical Services 120,768 158,252 124,228 137,700 164,100 19.17% Utilities and Maintenance 25,296 13,167 202,691 41,700 215,730 417.34% Operations 129,038 152,895 4,836 143,335 8,035 -94.39% City Support Services 123,480 123,095 123,537 123,537 127,243 3.00% Supplies and Materials 98,754 48,012 23,618 64,950 21,300 -67.21% Depreciation 52,214 56,000 56,671 56,000 56,000 Total Operating Expenses 815,943 824,173 844,737 923,876 962,379 4.17% Non-operating expenses 25,000 125,000 -25,000 25,000 Total Expenses 840,943 949,173 844,737 948,876 987,379 4.06% Net Income (Loss)125,742 63,961 169,257 58,524 23,121 -60.49% Revenues and Expenses REFUSE BUDGET The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 141 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$21,428 $14,900 $18,000 20.81% OPERATING EXPENSES: Personnel Services 21,923 16,713 17,190 2.85% Other Services & Charges 30,525 23,930 25,577 6.88% Operating Income (Loss)52,448 40,643 42,767 5.23% NET INCOME (LOSS)($31,020) ($25,743) ($24,767)-3.79% PERSONNEL: Number of FTE positions 0.26 0.26 0.26 FUND 717 – REFUSE FUND PROGRAM: Bulk Collection PROGRAM SUMMARY The Bulk Collection program of the Refuse Utility Fund is a user fee based service that provides bulk item pickup for larger items. Pick ups are scheduled on a call-in basis and take place Thursdays throughout the year. A bulk item drop off event is provided twice per year (spring & fall). MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Review and expand user fee based system. (Council Approval Required) 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$6,081 $10,000 $10,000 0.00% OPERATING EXPENSES: Personnel Services 44,792 43,789 45,537 3.99% Other Services & Charges 25,544 25,929 29,386 13.33% Operating Income (Loss)70,336 69,718 74,923 7.47% NET INCOME (LOSS)($64,255) ($59,718) ($64,923)8.72% PERSONNEL: Number of FTE positions 0.62 0.62 0.62 142 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$173,078 $197,900 $197,900 0.00% OPERATING EXPENSES: Personnel Services 40,788 35,027 36,428 4.00% Other Services & Charges 139,537 160,548 164,342 2.36% Operating Income (Loss)180,325 195,575 200,770 2.66% NON-OPERATING REVENUES:0 1,600 1,600 0.00% NET INCOME (LOSS)($7,247) $3,925 ($1,270)-132.36% PERSONNEL: Number of FTE positions 0.41 0.41 0.41 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2018: 1. Monitor the Single Stream Recycling Program and work with residents to increase the volume of waste recycled. 2. Verify compliance of commercial and multi- family properties. 3. Continue to promote waste abatement through public awareness campaigns and educational presentations. 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$0 $0 $0 0.00% OPERATING EXPENSES: Personnel Services 33,978 59,924 62,155 3.72% Other Services & Charges 18,429 28,009 27,751 -0.92% Operating Income (Loss)52,407 87,933 89,906 2.24% NET INCOME (LOSS)($52,407) ($87,933) ($89,906)2.24% PERSONNEL: Number of FTE positions 0.655 0.655 0.655 143 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$772,000 $783,000 $783,000 0.00% OPERATING EXPENSES: Personnel Services 167,674 201,201 208,661 3.71% Other Services & Charges 264,875 272,806 289,352 6.07% Depreciation Expense 56,671 56,000 56,000 0.00% Operating Income (Loss)489,220 530,007 554,013 4.53% NON-OPERATING REVENUES:11,000 0 0 #DIV/0! NON-OPERATING EXPENSES:0 (25,000) (25,000) 0.00% NET INCOME (LOSS)$293,780 $227,993 $203,987 -10.53% Capital Outlay/Construction $0 $0 $0 0.00% PERSONNEL: Number of FTE positions 2.145 2.145 2.145 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 2018: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. 144 CITY OF HOPKINS STORM SEWER BUDGET Revenues and Expenses Enterprise Fund 740 Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Current Services $805,542 $810,183 $834,262 $802,000 $802,000 -3.87% Interest Earnings 8,385 8,459 10,577 8,200 8,200 -22.47% Total Revenues 813,927 818,642 844,839 810,200 810,200 -4.10% Non-operating revenues 605,843 66,841 - - Total Revenues 1,419,770 885,483 844,839 810,200 810,200 -4.10% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 39,534 32,879 46,049 51,289 53,251 11.38% Fringe Benefits 10,526 11,526 15,783 14,282 14,846 -9.51% Materials, Supplies and Services Professional & Technical Services 1,000 10,720 5,837 13,000 33,000 122.72% Utilities and Maintenance 4,909 23,494 45,862 44,550 40,000 -2.86% City Support Services 63,511 52,675 56,916 -4,000 -100.00% Supplies and Materials 861 2,648 5,682 1,500 2,000 -73.60% Depreciation 230,152 227,000 270,606 227,000 249,341 -16.11% Total Operating Expenses 350,492 360,942 446,735 351,621 396,438 -21.29% Non-operating expenses 69,634 247,523 145,428 130,504 Total Expenses 420,126 608,465 446,735 497,049 526,942 11.26% Net Income 999,644 277,017 398,104 313,151 283,258 -21.34% The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 145 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 2018: 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 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$803,709 $802,000 $802,000 0.00% OPERATING EXPENSES: Personnel Services 61,831 65,571 68,097 3.85% Other Services & Charges 114,297 59,050 79,000 33.78% Depreciation Expense 246,119 227,000 227,000 0.00% Operating Income (Loss)422,247 351,621 374,097 6.39% NON-OPERATING REVENUES:41,130 8,200 8,200 0.00% NON-OPERATING EXPENSES:(24,487) (145,428) (152,845) 5.10% NET INCOME (LOSS)$398,105 $313,151 $283,258 -9.55% Capital Outlay/Construction $0 $1,116,000 $0 -100.00% PERSONNEL: Number of FTE positions 0.63 0.63 0.63 146 CITY OF HOPKINS PAVILION Revenues and Expenses Enterprise Fund 747 Projected Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Rental $323,156 $331,671 $455,501 $386,000 $438,000 13.47% Interest Earnings - - 532 - - Miscellaneous 24,642 22,133 14,291 18,100 7,000 -61.33% Total Revenues 347,798 353,804 470,324 404,100 445,000 10.12% Non-operating revenues 63,918 63,915 - - Total Revenues 411,716 417,719 470,324 404,100 445,000 10.12% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 181,751 187,250 211,634 193,237 201,806 4.43% Fringe Benefits 51,608 52,745 73,659 62,329 64,914 4.15% Total Salaries and Wages 233,359 239,995 285,293 255,566 266,720 4.36% Materials, Supplies and Services Professional & Technical Services 6,388 4,735 4,130 3,500 4,500 28.57% Utilities and Maintenance 90,167 83,046 115,655 92,000 97,750 6.25% Operations 82,701 73,739 91,869 74,100 78,233 5.58% City Support Services 15,166 16,075 12,063 16,076 12,420 -22.74% Supplies and Materials 16,670 20,065 13,955 17,350 15,100 -12.97% Total Materials Supplies & Service 211,093 197,660 237,672 203,026 208,003 2.45% Total Operating Expenses 444,452 437,655 522,965 458,592 474,723 3.52% Non-operating expenses 3,016 2,624 2,214 2,225 1,825 -17.98% Total Expenses 447,468 440,279 525,179 460,817 476,548 3.41% Net Income (Loss)(35,752) (22,560) (54,855) (56,717) (31,548) -44.38% The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 147 CITY OF HOPKINS FY 2017 FY 2018 FY 2017 Approved Approved Percent Actual Budget Budget Change OPERATING REVENUES:$470,324 $293,100 $296,000 0.99% OPERATING EXPENSES: Personnel Services 285,293 255,566 266,720 4.36% Other Services & Charges 151,879 131,026 136,003 3.80% Depreciation Expense 83,578 72,000 72,000 0.00% Operating Income (Loss)520,750 458,592 474,723 3.52% NON-OPERATING REVENUES:0 111,000 149,000 34.23% NON-OPERATING EXPENSES:(2,214) (2,225) (1,825) -17.98% NET INCOME (LOSS)($52,640) ($56,717) ($31,548)-44.38% Capital Outlay/Construction $0 $0 $0 #DIV/0! PERSONNEL: Number of FTE positions 2.4 2.4 2.9 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 2018: 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. 148 CITY OF HOPKINS Actual Actual Actual Budget Budget Percent 2015 2016 2017 2017 2018 Change Revenues Property Tax $1,530,837 $1,876,459 $2,042,687 $2,581,352 $3,149,223 22.00% Special Assessments 828,529 829,065 897,122 973,952 911,090 -6.45% Interest 28,298 22,564 27,969 16,160 16,101 -0.37% Bond Premium 425,129 452,970 492,506 - - Transfer In 756,248 1,191,965 1,478,246 1,545,248 1,879,733 21.65% Bond Proceeds 18,735,000 12,310,000 15,932,652 - Total Revenues 22,304,041 16,683,023 20,871,182 5,116,712 5,956,147 16.41% Expenditures Bond expenditures Professional Fees 329,052 425,095 423,786 18,000 18,000 Principal 8,570,000 3,075,000 3,080,000 3,080,000 3,720,000 20.78% Interest 617,988 814,199 1,035,605 1,048,639 1,601,498 52.72% Fiscal charges 7,378 8,354 9,714 6,000 6,000 Bond Discount - - - - Deposit to Escrow Account 3,937,887 7,305,660 3,678,549 3,678,548 -100.00% Transfer Out 7,118,707 8,765,862 15,936,718 - Total Expenditures 20,581,012 20,394,170 24,164,372 7,831,187 5,345,498 -31.74% Sources (Uses) of Fund Balance 1,723,029 (3,711,147) (3,293,190) (2,714,475) 610,649 -17.57% Revenues and Expenditures DEBT SERVICE FUNDS 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. In January 2014 the City's credit rating was upgraded to a AA+ following an interium rating review. This rating has been reaffirmed each year since. 149 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. 150 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. 151 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. 152 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. 153 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. 154 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. 155 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. 156