2005 City of Hopkins, MN Annual Report COMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS
For The Year Ended
December 31 , 2005
Prepared by:
Department of Finance
Christine M. Harkess, Finance Director
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THE CITY OF HOPKINS,MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31,2005
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
_ Letter of Transmittal from the City Manager
and Finance Director 3
Certificate of Achievement for Excellence in
Financial Reporting 9
Administrative Organization Chart 10
City Officials 11
FINANCIAL SECTION
Independent Auditors' Report 13
Management's Discussion and Analysis 15
Basic Financial Statements:
— Government-wide Financial Statements:
Statement of Net Assets 28
Statement of Activities 29
Fund Financial Statements:
Balance Sheet- Governmental Funds 30
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 31
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds 32
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 33
_ Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund 34
Statement of Revenues, Expenditures, and Changes in
_ Fund Balances - Budget and Actual - Tax Increment 1.2 -
Entertainment Center Special Revenue Fund 39
Statement of Net Assets - Proprietary Funds 40
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds 41
Statement of Cash Flows - Proprietary Funds 42
Notes to Financial Statements 44
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet -Nonmajor Governmental Funds 67
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances -Nonmajor Governmental Funds 76
THE CITY OF HOPKINS,MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31,2005
Page
Schedules of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 85
Economic Development 86
Real Estate Purchases and Sales 87 _
Art Center 88
Tax Increment 1.1 - Downtown 89
Tax Increment 2.1 - R.L. Johnson Company 90 _
Tax Increment 2.6 - Sonoma Project 91
Tax Increment 2.7 - Thermotech 92
Tax Increment 2.8 - Diamond Labs 93 _
Tax Increment 2.9 - Oaks of Mainstreet 94
Tax Increment 2.10 - Business District 95
Tax Increment 2.11 - SuperValu 96
Block 64 Development 97 —
Para-Transit 98
Housing Rehab 99
Parking 100
Section 8 Housing 101
Cable TV 102
Depot Coffee House 103 —
Combining Statement of Net Assets -Nonmajor Enterprise Funds 106
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets -Nonmajor Enterprise Funds 107 —
Combining Statement of Cash Flows -Nonmajor Enterprise Funds 108
Combining Statement of Net Assets - Internal Service Funds 111
Combining Statement of Revenues, Expenses, and Changes in _
Fund Net Assets - Internal Service Funds 112
Combining Statement of Cash Flows - Internal Service Funds 113
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31,2005
Page
STATISTICAL SECTION
Government-wide information:
Government-wide Expenses by Function 116
Government-wide Revenues 118
Fund Information:
_ General Governmental Expenditures by Function 119
General Governmental Revenues by Source 120
Property Tax Levies and Collections 121
Tax Capacity Value and Market Value of All Taxable Property 122
Property Tax Rates - Direct and Overlapping Governments 123
Special Assessments Billings and Collections 124
Ratio of Net Bonded Debt to Tax Capacity Value and
Net Bonded Debt Per Capita 125
Computation of Legal Debt Margin 126
Computation of Direct and Overlapping Debt
Including Debt Ratios 127
Ratio of Annual Debt Service Expenditures for General Obligation
Bonded Debt to Total General Governmental Expenditures 128
Revenue Bond Coverage - Water and Storm Sewer
Revenue Bonds 129
Demographic Statistics 130
Construction and Property Value 131
Principal Taxpayers 132
Miscellaneous Statistical Facts 133
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City of qfopkins
1010 First Street South •Hopkins, MJF 55343-7573 •Phone:952-935-8474 • Fax952-935-1834
Web address:www.hopkinsmn.com
April 21, 2006
To the Honorable Mayor, Members of the Hopkins City Council and the Citizens of the
City of Hopkins, Minnesota :
The Comprehensive Annual Financial Report (CAFR) of the City of Hopkins, Minnesota (the City)
for the fiscal year ended December 31, 2005 is hereby submitted. This report was prepared in
accordance with generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) and meets the requirements of the State
_ Auditor's Office.
This report consists of management's representations concerning the finances of the City of
Hopkins. Consequently, management assumes full responsibility for both the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for making
these representations, management of the City of Hopkins has established a comprehensive internal
control framework that is designed both to protect the government's assets from loss, theft, or
misuse and to compile sufficient reliable information for the preparation of the City of Hopkins
financial statements in conformity with GAAP. Because the cost of internal controls should not
outweigh their benefits, the City of Hopkins comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best of our knowledge and
belief, this financial report is complete and reliable in all material respects.
The City of Hopkins financial statements have been audited by KPMG LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the City of Hopkins for the fiscal year ended December 31, 2005, are
_ free of material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall financial
statement presentation. The independent auditor concluded based upon the audit, that there was a
reasonable basis for rendering an unqualified opinion that the City of Hopkins financial statements
for the fiscal year ended December 31, 2005, are fairly presented in conformity with GAAP. The
independent auditor's report is presented as the first component of the financial section of this
report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
_ (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City's MD&A can be found in the financial section of this report
immediately following the report of the independent auditors.
Partnering with the Community to Enhance the Quality of Life
•Inspire•Educate•Involve•Communicate•
Profile of the Government
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in 1893.
The name was changed in 1928 to Hopkins after one of the early residents. The original territory of
incorporation was three square miles, but successive annexation since 1946 has enlarged this area by _
one-third. In 1947, the residents of the area adopted a City Charter with a Council/Manager form of
government. The governing council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and hiring the government's manager and the _
government's attorney. The government's manager is responsible for carrying out the policies and
ordinances of the government, for overseeing day-to-day operations of the government and for
appointing the heads of the government's departments. —
The report includes all funds and account groups of the City, including the city's Housing and
Redevelopment Authority (HRA). The City provides a full range of services including general —
government, public safety, streets and highways, urban redevelopment and housing, parks and
recreation, and health and human services. In addition to general municipal activities, the City
provides water, sewer, storm sewer and refuse services. Low-income rental housing is a function of —
the HRA. The Hopkins Fire Relief Association has not met the established criteria for inclusion in
the reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and control.
All departments of the City of Hopkins are required to submit requests for appropriation to the
finance director by August of each year. The finance director uses these requests as the starting
point for developing a proposed budget. The finance director then presents this proposed budget to
the council for review prior to September 15th. The council is required to hold public hearings on _
the proposed budget and to adopt a final budget no later than December 31, the close of the City of
Hopkins fiscal year.
The appropriated budget is prepared by fund and department. Department heads may make transfers
of appropriations within a department. Transfers of appropriations between funds require approval
of the city council. Budget to actual comparisons are provided in this report for each individual —
governmental fund for which an annual budget has been adopted. For the general fund this
comparison is presented on pages 34-38 as part of the basic financial statements for the
governmental funds. For governmental funds, other than the general fund, with annual budgets, this
comparison is presented in the combining and individual fund statements and schedules subsection
of this report on pages 85-103.
Factors Affecting Financial Condition
The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly
fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan _
complex, is readily accessible by the many highways and railways leading into the area. This easy
access prompted steady growth for the City of Hopkins during its formative years. In response to
this growth the City developed goals of working towards a planned community, with its policies _
directed toward sound ratios of residential, commercial and industrial components, with the current
tax base approximately 76% single family residential and apartments, and 24% commercial-
4
-- industrial. The city's population has stabilized due to the fact that the City is largely developed and
the national trend toward the lowering of persons per household.
The city council and staff along with an organized group of concerned partners determined what the
Vision and the Mission of the City of Hopkins should be. Participation in this project was very high
and the resulting Vision and Mission are as follows:
Community Vision
_ Creating a Spirit of Unity—Hopkins will be a community where
• People are treated with respect
• People participate in building culture, character and common bonds
• Business growth throughout the City is supported while maintaining a vibrant City center
• People feel safe, support outstanding schools and celebrate cultural heritages
• People enjoy quality public services,parks and housing
City of Hopkins Mission
Partnering with the Community to enhance the quality of life,
— Inspire, Educate, Involve, Communicate
Economic Condition and Outlook
_ Hopkins continues to show strong economic and redevelopment activities within the city. The
valuation of new non-residential construction in 2005 was $10.2 million dollars. This development
activity has been the result of a good development market in the Hopkins area along with successful
planning on the part of the city council and city staff.
Significant projects completed or begun in 2005 include the following:
Activity Valuation
Commercial Additions/Alterations:
Super Valu $ 3,000,000
Oakridge Country Club $12,100,000
Summit Condominiums $15,700,000
Excelsior Tech Center $ 1,100,000
Oakridge Place $ 9,000.000
Hopkins Honda $ 8,500,000
1010 Mainstreet $ 1,100,000
_ Efforts are being made for continued development and growth for 2006 and beyond. It is
anticipated that approximately $100,050,000 of construction will also take place in the City of
Hopkins during 2006/2007.
5
Some anticipated projects during this period include the following:
Proj ect Valuation
Market Place & Main Lofts $15,000,000
Excelsior Crossing Phase I $40,000,000 _
Excelsior Boulevard Redevelopment
& Streetscape Improvements $ 3,800,000
6th &Main Condominiums/Lofts $20,000,000 _
Oakridge Place 11 $ 9,000,000
NE Corner 5th &Hopkins Crossroads Redevelopment $ 4,600,000
Parker Office Condominiums not available _
Long-term financial planning
The City of Hopkins has developed a strategic plan for economic development. As a part of this
plan, the City of Hopkins intends to pursue various development and redevelopment efforts —
throughout the City. Several projects are anticipated.
In 2006, projects to be constructed include the redevelopment of Block 64 (6th &Main), phase II of
Market Place Lofts and the redevelopment of the North Annex property (Excelsior Crossing).
These developments will have major impacts on the community. Specialized planning is taking
place to ensure that these developments occur so as to benefit the community and residential
neighborhoods.
Major improvements continue to be made along the Hopkins section of Excelsior Boulevard
(County Road 3). The first phase of improvements occurred in 1998 - 2000 between Shady Oak
Road and 91h Avenue South. The second phase occurred in 2002 — 2004 between Highway 169 and _
Blake Road. The third phase will be constructed in 2006 on the segment between Highway 169 and
8th Avenue. The final phase is the section from Blake Road to Meadowbrook Road — this project
has provisional County funding and is tentatively scheduled for 2009—2010. _
Major Initiatives
For 2005, the staff, following specific directives of the council and the manager, has been involved
in a variety of projects throughout the year. These projects reflect the government's commitment to
ensuring that its citizens are able to live and work in a safe environment and that the needs for —
services are met.
In 2005 we accomplished our annual street repair and improvements, at a cost of approximately
$3,627,000. The projects included replacing infrastructure, roadway surface, curb and gutters,
parking lot surfaces and alley reconstruction. The year also saw the completion of the remodeling of _
the old fire station to provide more space for the police department that began in 2004. These
improvements to facilities will provide safer and healthier work environments for city employees,
extend the life of the equipment used by these departments and meet federal and state standards for _
witness and prisoner handling.
6
The water department is in the process of converting the larger commercial meters to a radio read
system. This project will be completed in 2006. Storm Sewer reconstruction projects totaling
$224,000 were also completed in 2005.
Other miscellaneous development in 2005 included the addition of playground equipment at Burnes
Park at a cost of$50,000.
Future projects
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in
2003, which guides future improvements and connections to regional trails.
Hennepin County has included in its five year CIP an improvement project relating to County Road
3 extending through the entire City of Hopkins. Improvements include street surface, widening,
lighting, landscaping, sidewalks, and trails. These improvements will continue to take place during
2006-2007
The City has established a street reconstruction and storm sewer program based on a street condition
survey and storm water management program. The streets found in poor condition and future
problem streets will be systematically included for repairs in the five-year Capital Improvement
Plan.
Cash management policies and practices
The City's financial position remained strong during 2005. Cash and investment balances at year-
end totaled $23,970,962, which provides the liquidity necessary to avoid short-term borrowing.
The unreserved General Fund balance is available to provide funding for working capital until tax
settlements are received in June and December of each year, to provide funds for unknown events
and emergencies, which could have an adverse effect on the fund. A strong fund balance should be
at least 50% of the "gross" General Fund property tax levy (before netting of fiscal disparities
distribution) for the following year. Through sound financial management, the City has achieved
this goal in 2005 as well as previous years.
Cash temporarily available for short-term investment during the year was invested as authorized by
Minnesota Statutes Chapter 475 and the City's Investment Policy.
The City of Hopkins subscribes to the "pooled cash" concept of investing which means that all
funds with cash balances participate in an investment pool. This permits some funds to be
overdrawn and others to show cash balances when, in fact, the City has a cash balance. This pooled
cash concept provides for investing greater amounts of money at more favorable rates. Interest
earnings are then allocated on a monthly basis to the participating funds.
_ The City's primary investment policy goal is to minimize investment market risks while realizing a
competitive yield on its portfolio. The classification of the category of credit risk is shown in Note
7
2 to the financial statements. The City has the ability and intent to hold its investments to maturity
and therefore intends to recover the full value of its investment portfolio upon maturity. The portion _
of the City's investments, which mature in less than one year, is 45%. During 2005, the City of
Hopkins earned $434,439 as compared to 2004 earnings of$418,263. The increased earnings are
attributed to slightly higher yields. _
Risk Management —
The City continues to maintain insurance coverage at state required levels for various types of
exposure - general and auto liability, worker's compensation, boiler, and employee bonds.
Certificate of Achievement For
Excellence in Financial Reporting —
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial reporting to the City of Hopkins for its —
comprehensive annual finance report for the fiscal year ended December 31, 2004. In order to be
awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit
must publish an easily readable and efficiently organized comprehensive annual financial report. —
This report must satisfy both generally accepted accounting principles and applicable legal
requirements. —
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's _
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
Acknowledgments
We wish to express our appreciation to the Mayor and City Council for their continued interest and —
support in planning and conducting the financial operations of the City in a responsible and
progressive manner. We also want to express our appreciation to Deborah Dahlheimer, Lee
Goodman and Pat Weigel of the Finance Department staff for their work in preparing this report. —
Respectfully submitted,
Pchard B. Getschow Christine M. Harkess, CPA, CGFM
City Manager Finance Director _
8 —
- Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hopkins,
Minnesota
— For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
— government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
— and financial reporting.
OFTHE
W UNITEO STATES H
C'A President
CORPORATION
SFAL
CNICAG� E
Executive Director
9
CITIZENS
Boards& CITY
Commissions COUNCIL City Attorney
City Manager
Administration City of
Minnetonka
-- -- - - -
Community Planning &
Services Finance Economic Fire Police Public Works Recreation
Development
Accounting Economic Patrol Building Maint.&
Assessing Payroll Fire&Medical
City Clerk y Development Response Investigation Equipment Playgrounds
Elections Utility Billing Housing Fire Prevention Dispatch Engineering Ice Rinks
Inspections
Budgeting Planning& Emergency Crime Parks&Forestry Joint
Real Estate ZoningPrevention Street/Traffic Recreation
Reception Debt Preparedness
Communications Public Housing Chemical Records Refuse
Equipment TIF Districts Water&Sewer
MIS Re lacement Assessment
p Parking Facilities Mgmt.
Paratransit Activity Center
Center for the Arts
Depot, Skate Park
Pavilion/Ice Arena
2006
10
I I I I I I I I I I I I I ! I I I I I
THE CITY OF HOPKINS,MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31,2005
CITY OFFICIALS
December 31, 2005
CITY COUNCIL
Term
Expires
Eugene Maxwell Mayor 12-31-05
Bruce Rowan Councilmember 12-31-05
Diane Johnson (resigned I1-2-2005) Councilmember 12-31-07
position remained vacant remainder of the year
Jay Thompson Councilmember 12-31-07
Rick Brausen Councilmember 12-31-05
CITY MANAGER
Richard B. Getschow Appointed
FINANCE DIRECTOR
Christine M. Harkess Appointed
11
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KPMG LLP Telephone 612 305 5000
4200 Wells Fargo Center Fax 612 305 5100
90 South Seventh Street Internet www.us-kpmg.com
Minneapolis, MN 55402
The Honorable Mayor and Members of the City Council
City of Hopkins,Minnesota:
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City
of Hopkins, Minnesota (the City), as of and for the year ended December 31, 2005, which
collectively comprise the City's basic financial statements as listed in the accompanying table of
contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control over financial reporting. Accordingly,we
express no such opinion.An audit also includes examining,on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City as of December 31, 2005, the
respective changes in financial position, and where applicable, cash flows, thereof and the
respective budgetary comparison for the general fund for the year then ended in conformity with
U.S. generally accepted accounting principles.
The management's discussion and analysis on pages 15 through 26 is not a required part of the basic
financial statements, but is supplementary information required by U.S. generally accepted
accounting principles. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion on
it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual nonmajor
fund financial statements and schedules are presented for purposes of additional analysis and are not
a required part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is
13
KPMG LLP,a U S.limited liability partnership,is the U.S.
member firm of KPMG International,a Swiss cooperawe
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The introductory section, the data designated as supplemental financial schedules and the statistical
section in the accompanying table of contents have not been subjected to the auditing procedures _
applied in the audit of the basic financial statements and, accordingly, we express no opinion on
them.
Minneapolis,Minnesota ' `" ' C, LCC
April 21,2006 —
14 —
CITY OF HOPKINS, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Unaudited)
This section of the City's comprehensive annual financial report presents a discussion and analysis
of the City's financial activities during the fiscal year ended December 31, 2005. This discussion
and analysis should be read in conjunction with the letter of transmittal in the introductory section of
this report.
Financial Highlights
• The assets of the City of Hopkins exceeded liabilities by approximately$57 million. Of this
amount, (unrestricted net assets), approximately$10.5 million may be used to meet the
City's ongoing obligations to citizens and creditors.
• The City's total net assets decreased slightly by approximately $225 thousand.
• As of the close of the current fiscal year,the City of Hopkins governmental funds reported
combined ending fund balances of approximately $22 million, an increase of approximately
$1 million in comparison with the prior year. Approximately$8 million of fund balance is
available for spending at the City's discretion(unreserved fund balance).
• As of December 31, 2005, unreserved fund balance for the General Fund was approximately
$3.4 million, or 40%of total general fund expenditures.
• The City of Hopkins total debt increased by approximately $695 thousand during the current
fiscal year. The key factor for this increase was the issuance of$3.385 million in refunding
bonds that will refund $3.34 million in current debt in February 2006.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Hopkins basic
financial statements. The City of Hopkins basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a
private-sector business.
The statement of net assets presents information on all of the City of Hopkins assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Hopkins is
improving or deteriorating.
The statement of activities presents information showing how the City net assets changed during the
_ most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
15
Both of the government-wide financial statements distinguish functions of the City of Hopkins that
are principally supported by taxes and intergovernmental revenues (governmental activities) from _
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Hopkins
include general, public safety, highways, streets, culture, recreation, urban redevelopment, housing,
health and welfare. The business-type activities of the City of Hopkins include water, sewer,refuse,
storm sewer utilities, an ice arena, a skate park and a housing and redevelopment authority.
—
The government-wide financial statements include the City of Hopkins itself, but also a legally
separate Hopkins Housing and Redevelopment Authority. Although the Hopkins Housing and
Redevelopment Authority is legally separate, it functions for all practical purposes as a department
of the City of Hopkins, and therefore has been included as an integral part of the primary
government.
The government-wide financial statements can be found on pages 28-29 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Hopkins, like other state and local governments, uses fund accounting to ensure and demonstrate _
compliance with finance-related legal requirements. All of the funds of the City of Hopkins can be
divided in two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a City's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Hopkins maintains forty-six individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of _
revenues, expenditures, and changes in fund balances for the general fund, Tax Increment 1-2
Entertainment District, permanent improvement revolving fund, 1997 G.O. housing bond fund,
1999-A taxable housing improvement bonds and 1999-B taxable housing improvement bonds, all of ._
which are considered to be major funds. Data from the other forty funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
16 "'
The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special
revenue funds except for the community development block grant fund. The budgetary comparison
statements have been provided for the general fund and Tax Increment 1-2 Entertainment District
and schedules are provided for other funds to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 30-39 of this report.
Proprietary funds. The City of Hopkins maintains two types of proprietary funds. Enterprise
_ funds are used to report the same functions presented as business-type activities in the government-
wide financial statements. The City of Hopkins uses enterprise funds to account for its water,
sewer, refuse, storm sewer utilities, the pavilion ice arena, the skate park and the housing and
redevelopment authority. Internal service funds are an accounting device used to accumulate and
allocate costs internally among the City of Hopkins various functions. The City of Hopkins uses
internal service funds to account for replacement of equipment, insurance deductibles and
compensated absences. Because all of these services predominantly benefit governmental rather
than business-type functions, they have been included within governmental activities in the
government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, and storm sewer operations, all of which are considered to be
major funds of the City of Hopkins. Data from the other four enterprise funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major proprietary funds
is provided in the form of combining statements elsewhere in this report. The internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is also provided in the form of combining
statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 40-43 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements can be found on pages 44-64 of this report.
Other information. The combining statements referred to earlier in connection with non-major
governmental funds, non-major proprietary funds and internal service funds are presented
immediately following the notes to the financial statements. Combining and individual fund
statements and schedules can be found on pages 67-113 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of Hopkins, assets exceeded liabilities by $57,332,081 at the close
of the most recent fiscal year.
Slightly more than one half(63%) of the City of Hopkins net assets are reflected in its investment in
'^ capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire
17
those assets that are still outstanding. The City of Hopkins uses these capital assets to provide
services to citizens. The net capital assets are not available for future spending. Although the City
of Hopkins investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources.
City of Hopkins Net Assets
December 31
Governmental Activities Business-Type Activities Total
2005 2004 2005 2004 2005 2004
Assets
Current and other assets $35,488,257 $36,163,349 $ 2,282,749 $ 2,998,008 $37,771,006 $39,161,357
Capital assets 38,024,558 35,895,287 19,151,166 19,650,391 57,175,724 55,545,678 •-
Total assets 73,512,815 72,058,636 21,433,915 22,648,399 94,946,730 94,707,035
Liabilities
Other liabilities 7,981,813 4,383,483 1,017,836 1,409,586 8,999,649 5,793,069
Long-term liabilities
outstanding 24,235,000 26,526,284 4,380,000 4830000 28,615,000 31,356,284
Total liabilities 32,216,813 30,909,767 5,397,836 6,239,586 37,614,649 37,149,353
Net Assets
Invested in capital
assets,net of related
debt 22,318,027 21,277,779 14,321,166 14,380,391 36,639,193 35,658,170
Restricted 9,921,122 9,009,337 250,000 250,000 10,171,122 9,259,337 '—
Unrestricted 9,056,853 10,861,753 1,464,913 1,778,422 10,521,766 12,640,175
Total net assets $41,296,002 $41,148,869 $16,036,079 $16,408,813 $57,332,081 $57,557,682
A portion of the City of Hopkins net assets represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets
($10,521,766)may be used to meet the government's ongoing obligations to citizens and editors.
At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its governmental
and business-type activities. The City's net assets decreased by $225,601 during the current fiscal
year.
Governmental and business-type activities. Governmental activities increased the City of
Hopkins net assets by $147,133 and business-type activities decreased net assets by $372,734. Key
elements of the increases and decreases are as follows:
18 "�
City of Hopkins Changes in Net Assets
For the Year Ended December 31
Governmental Activities Business-Type Activities Total
2005 2004 2005 2004 2005 2004
Revenues:
Program revenues:
Charges for services $ 1,102,467 $ 842,449 $ 4,255,689 $ 4,017,420 $ 5,358,156 $ 4,859,869
Operating grants and
contributions 1,471,449 2,110,441 158,270 232,689 1,629,719 2,343,130
Capital grants and
contributions 58,871 1,466,971 16,298 975 75,169 1,467,946
General revenues:
Property taxes 7,845,641 7,289,973 - - 7,845,641 7,289,973
Tax increments 970,846 2,177,518 - - 970,846 2,177,518
Grants and contributions
not restricted 603,307 566,514 - - 603,307 566,514
Investment earnings 389,548 339,883 44,891 78,380 434,439 418,263
Gain on sale of capital assets 43,955 - - - 43,955 -
,,,, Total revenues 12,486,084 14,793,749 4,475,148 4,329,464 16,961,232 19,123,213
Expenses:
_ General Government 1,380,540 1,150,064 - - 1,380,540 1,150,064
Public Safety 4,883,279 4,750,296 - - 4,883,279 4,750,296
Highways and Streets 2,334,756 2,114,601 - - 2,334,756 2,114,601
Urban Redevelopment and
Housing 913,645 939,846 - - 913,645 939,846
Culture and recreation 1,277,501 1,193,801 - - 1,277,501 1,193,801
Health and welfare 176,590 180,314 - - 176,590 180,314
Interest on long-term debt 1,480,148 1,604,523 - - 1,480,148 1,604,523
Water - - 1,080,393 1,053,600 1,080,393 1,053,600
Sewer - - 1,475,587 1,410,200 1,475,587 1,410,200
Storm Sewer - - 457,183 429,768 457,183 429,768
Refuse - - 739,490 686,883 739,490 686,883
Pavilion/Ice Arena - - 395,722 367,367 395,722 367,367
Skate Park - - 90,268 44,056 90,268 44,056
Housing and Redevelopment
Authority - - 501,731 425,024 501,731 425,024
Total expenses 12,446,459 11,933,445 4,740,374 4,416,898 17,186,833 16,350,343
Increase in net assets before
transfers 39,625 2,860,304 (265,226) (87,434) (225,601) 2,772,870
Transfers 107,508 126,240 (107,508) (126,240) - -
Increase in net assets 147,133 2,986,544 (372,734) (213,674) (225,601) 2,772,870
Net assets-January 1 41,148,869 38,162,325 16,408,813 16,622,487 57,557,682 54,784,812
Net assets-December 31 $41,296,002 $41,148,869 $16,036,079 $16,408,813 $57,332,081 $57,557,682
19
Governmental activities: Property taxes increased in 2005 as a result of debt service levies and _
increased operating costs.
Revenues by Source-Governmental Activities
Gain on sale of capital Investment earnings —
assets 3%
Grants and contributions 0% Charges for services
not restricted
9% —
5%
Operating grants and
Tax increments contributions
0
8/0 12% —
Capital grants and
contributions _
0%
Property taxes
63%
Expenses and Program Revenues -Governmental Activities
0 Program revenues
■Expenses
$6,000,000
$5,000,000 --- -- -----
$4,000,000 --
$3,000,000 - - ----
$2,000,000 - —
$1,000,000
$0 �i 7L,
General Public Safety Highways and Urban Culture and Health and Interest on long-
Government Streets Redevelopment recreation welfare term debt
and Housing —
20
Business-type activities. Business-type activities had a decrease in net assets due to increased
operating costs and a decrease in operating grants and contributions.
Revenues by Source - Business-type Activities
Capital grants and
contributions
0% Investment
Operating grants earnings
and contributions 1%
4%
Charges for
services
95%
Expenses and Program Revenues -Business-type Activities
$1,750,000
$1,500,000 --
$1,250,000
Program revenues j
$1,000,000 —
■Expenses
$750,000
$500,000
$250,000
$0
LA 4--wif,
Water Sewer Storm Refuse Pavilion/ice Skate Park Housing
Sew er Arena Authority
21
Financial Analysis of the City's Funds
As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of the City of Hopkins governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information
is useful in assessing the City of Hopkins financing requirements. In particular, unreserved fund
balance may serve as a useful measure of a City's net resources available for spending at the end of
the fiscal year.
As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined
ending fund balances of $21,540,593, a increase of $931,311 in comparison with the prior year.
Approximately 40% of fund balance ($8,283,033) constitutes unreserved fund balance, which is
available for spending at the City's discretion. The remainder of fund balance is reserved to indicate
that it is not available for new spending because it has already been committed 1) to pay debt
service, 2) to pay for the facility construction, 3) to pay for tax increment projects and debt, 4) to
provide for future rehabilitation loans, and 5) to provide for long-term receivables that are not
available or spendable resources.
The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal
year, unreserved fund balance of the general fund was $3,367,721. This represents 78% of the
general fund's total fund balance. As a measure of the general fund's liquidity, it may be useful to
compare both unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents approximately 40% of total general fund expenditures while
total fund balance represents approximately 51%of that same amount.
The fund balance of the City of Hopkins general fund increased by $239,899 during the current
fiscal year. Key factors in the increase are an increase in property tax revenues for operations
($175,138) and for a one time transfer to the 2002 HRA Leased Revenue bond fund for debt service
payments ($400,000) an increase in charges for services for engineering services allocated to
specific projects ($161,341), court fines ($22,336), interest income ($21,903) and inflationary
increases in operating costs (salaries, fuel and fuel based products, electricity, and property and
liability insurance) for general government ($236,527), public safety ($111,949) and highways and
streets($145,793).
The tax increment 1-2 entertainment district fund has a total negative fund balance of $27,599,
which is unreserved. The fund balance decreased by $56,411 as debt service payments exceeded tax
increment revenues. Future tax increments will improve the fund balance.
The permanent improvement revolving fund has a total fund balance of$1,212,203, all of which is
designated for future street improvement projects. The net decrease in fund balance during the ..
current year in the permanent improvement revolving fund was $322,173. The decrease was due to
the planned use of fund balance to fund current projects, a portion of which will be assessed to
property owners for collection over the next ten years.
22
—
The 1997 G.O. Housing bond fund has a total fund balance of$193,004, all of which is reserved for
the payment of debt service. The fund balance increased by $10,280 as tax revenues exceeded
current debt payment requirements.
The 1999A Taxable Housing Improvement bond fund has a total fund balance of$179,433, all of
which is reserved for the payment of debt service. The fund balance increased by $8,527 as tax
revenues exceeded current debt payment requirements.
The 1999B Taxable Housing Improvement bond fund has a total fund balance of$319,914, all of
which is reserved for the payment of debt service. The fund balance increased by $16,156 as tax
revenues exceeded current debt payment requirements.
Proprietary funds. The City of Hopkins proprietary funds provide the same type of information
found in the government-wide financial statements,but in more detail.
—
Unrestricted net assets of the Water fund at the end of the year amounted to $575,833. The
unrestricted net assets are used to offset operating losses and pay for infrastructure improvements.
The decline in net assets amounted to $127,036 and is due to operating costs exceeding operating
revenues. A rate study is planned for 2006 to address the water rate structure.
Unrestricted net assets of the Sewer fund at the end of the year amounted to $430,261. The
unrestricted net assets are used to offset operating losses and pay for infrastructure improvements.
The decline in net assets amounted to $235,062 and is due to operating costs exceeding operating
revenues. Although operating revenues increased slightly from the previous year, operating costs
also increased. A rate study is planned for 2006 to address the sewer rate structure.
Unrestricted net assets of the Storm Sewer fund at the end of the year amounted to $644,371. The
unrestricted net assets are used to pay for infrastructure improvements. The growth in net assets
_ amounted to $200,314 and is due to operating costs exceeding operating expenses for planned future
capital projects.
General Fund Budgetary Highlights
The difference between the general fund original budget and the final amended budget resulted in a
budgeted decrease of $55,665 in ending fund balance. The reason for the amendments was a
decision by the City council to allow some departments to carry forward unexpended appropriations
from 2004 into 2005 for uncompleted projects, to reallocated contingency funds to specific
departments and to increase budgeted transfers to the equipment replacement and skate park
enterprise fund. The budget changes can be summarized as follows:
• Net increase of$19,791 in intergovernmental revenues for a fire grant.
• Net increase of$5,000 in miscellaneous revenues for donations.
_ • Net increase of$26,493 in expenditures for general government activities.
• Net increase of$23,919 in expenditures for public safety.
• Net increase of$1,270 in expenditures for streets and highways.
• Net decrease of$108,718 in expenditures for unallocated.
• Net increase of$137,492 in expenditures for transfers out.
23
During the year revenues exceeded budgetary estimates and expenditures were less than budgetary _
estimates, eliminating the need to draw upon existing fund balance.
Capital Asset and Debt Administration _
Capital assets. The City of Hopkins investment in capital assets for its governmental and business
type activities as of December 31, 2005, amounts to $57,175,724 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, improvements, machinery and equipment,
park facilities,roads,highways,bridges and distribution systems.
Major capital asset events during the current fiscal year included the following:
• Construction continued on a new fire station and a public works storage facility along with
the remodeling for the new police facility. Construction in progress as of the close of the
fiscal year had reached$17,461,135 and also includes uncompleted infrastructure projects. _
• Various building, infrastructure and improvements were completed in the current fiscal year
at a cost of$116,143.
• Vehicle and equipment purchases totaled $1,028,970. Major purchases included a fire truck
and public works equipment.
City of Hopkins Capital Assets
(net of depreciation)
December 31
Governmental Activities Business-Type Activities Total
2005 2004 2005 2004 2005 2004
Land $ 5,772,023 $ 5,772,023 $ 218,697 $ 211,697 $ 5,990,720 $ 5,983,720
Buildings 3,947,290 4,021,812 3,841,134 3,915,189 7,788,424 7,937,001
Infrastructure 7,340,298 7,845,826 10,002,453 9,983,598 17,342,751 17,829,424
Improvements 656,209 705,479 3,972,194 3,749,999 4,628,403 4,455,478 ..
Vehicles 1,222,287 790,727 400,611 437,428 1,622,898 1,228,155
Equipment 2,157,653 1,996,897 183,740 253,702 2,341,393 2,250,599
Construction in progress 16,928,798 14,762,523 532,337 1,098,778 17,461,135 15,861,301
$ 38,024,558 $ 35,895,287 $ 19,151,166 $ 19,650,391 $ 57,175,724 $ 55,545,678
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 54-56
of this report. _
Long-term debt. At the end of the current fiscal year,the City of Hopkins had total bonded debt
outstanding of$33,991,284. Of this amount, $13,290,000 comprises housing and redevelopment
authority lease revenue debt, $6,656,284 comprises tax increment redevelopment debt, and
$2,505,000 comprises general obligation and special assessment debt, all of which is backed by the
full faith and credit of the government. Another$6,710,000 is special fees debt for which the
government is liable in the event of default by the property owners subject to the fees. The
24
remainder of the City of Hopkins debt, $4,830,000, represents bonds secured solely by specified
revenue sources (i.e.,revenue bonds).
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental Activities Business-Type Activities Total
2005 2004 2005 2004 2005 2004
HRA lease revenue bonds $ 13,290,000 $ 13,810,000 $ - $ - $ 13,290,000 $ 13,810,000
G.O.Tax increment bonds 6,656,284 5,677,436 - - 6,656,284 5,677,436
G.O.Housing fee bonds 6,710,000 5,630,000 - - 6,710,000 5,630,000
G.O.Redevelopment bonds 830,000 985,000 - - 830,000 985,000
G.O.Special assessment bonds 1,675,000 1,980,000 - - 1,675,000 1,980,000
Revenue bonds - - 4,830,000 5,270,000 4,830,000 5,270,000
$ 29,161,284 $ 28,082,436 $ 4,830,000 $ 5,270,000 $ 33,991,284 $ 33,352,436
The City of Hopkins total debt increased by $638,848 or 1.9%during the current fiscal year. The
increase is comprised of two factors,the sale of$3,385,000 in G.O. Tax Increment and G.O.
Housing Fee Refunding Bonds and debt payments of$2,746,152.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are
serviced by General and Tax Increment levies and also by fees assessed against benefited properties.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
the Water and Storm Sewer Utility Funds current revenues.
City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and
repayment monies are generated by the collection of special assessments and general levies.
Housing and Redevelopment Authority bonds are backed by the full faith, credit and taxing power
of the HRA, and repayment monies are generated by annual lease appropriations from the City.
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of estimated
property market value within the City during 2005. At December 31, 2005, the debt limit for the
City is $29,036,202. Of the total debt, $12,769,666 of general obligation and revenue bonds is
applicable to the limit. The legal debt margin is $16,266,536.
The City of Hopkins maintains an "AA-" rating from Standard & Poor's and an "Al" rating from
Moody's.
Additional information on the City of Hopkins long-term debt can be found in note 8 on pages 57-
59 of this report.
25
—
Economic Factors and Next Year's Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2006 budget.
Utility charges were reviewed and as a result sewer and storm sewer rates were increased. The tax
rate decreased for the second straight year due to redevelopment efforts of the city, which increased ..
the city's tax base allowing the taxes to increase with minimal impact on property owners. The
utility franchise fee that was set to expire at the end of 2005 was reviewed and extended for two
more years thus preserving approximately $300,000 in general fund revenues. Construction projects
within the city totaling approximately $51,000,000 were to be completed in 2006 thus adding to the
city's tax base. The City's population would remain constant. The City anticipated inflationary
increases of about 2.5%over the modified 2005 budget.
During the current fiscal year, unreserved fund balance in the general fund decreased to $3,367,721
or 40% of general fund expenditures. The Office of the State Auditor recommends unreserved fund
balances not exceed 50% of general fund expenditures. The City is within that recommendation for
the general fund. The unreserved fund balance is used to pay for the City's general fund obligations
until it receives its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for
all those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Director, City of Hopkins, 1010 First Street South, Hopkins, MN 55343.
—
26
—
LZ -
SININ31` IS 3bIDN`dNl3 DISb9
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City of Hopkins
Statement of Net Assets
December 31,2005 -
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and investments $ 21,567,916 $ 2,403,046 $ 23,970,962
Taxes receivable 140,303 - 140,303 -
Special assessments receivable 9,624,998 - 9,624,998
Accounts receivable 547,973 271,632 819,605
Intergovernmental receivable 693,589 442 694,031 -
Interest receivable 133,848 16,282 150,130
Internal balances 930,329 (930,329) -
Inventories 104,873 27,723 132,596 -
Prepaid items - 16,044 16,044
Restricted cash and investments 49,032 250,000 299,032
Deferred charges-issuance costs 88,469 - 88,469 -
Long-term receivables 1,606,927 227,909 1,834,836
Capital assets,non depreciable 22,700,821 751,034 23,451,855
Capital assets, net of accumulated depreciation 15,323,737 18,400,132 33,723,869 -
Total assets 73,512,815 21,433,915 94,946,730
Liabilities -
Accounts payable 1,012,002 116,071 1,128,073
Salaries payable 136,814 32,381 169,195
Due to other governments - 205,650 205,650
Accrued interest payable 620,996 88,316 709,312
Compensated absences due within one year 714,528 123,348 837,876
Unearned revenue 571,189 2,070 573,259
Bonds due within one year 4,926,284 450,000 5,376,284
Non current liabilities:
Bonds due in more than one year 24,235,000 4,380,000 28,615,000
Total liabilities 32,216,813 5,397,836 37,614,649
Net Assets
Invested in capital assets, net of related debt 22,318,027 14,321,166 36,639,193
Restricted for:
Facilities projects 49,000 - 49,000 -
Economic development 3,569,010 - 3,569,010
Debt service 6,303,112 250,000 6,553,112
Unrestricted 9,056,853 1,464,913 10,521,766 -
Total net assets $ 41,296,002 $ 16,036,079 $ 57,332,081
The notes to the financial statements are an integral part of this statement.
28
I I I I I I I I I I I 1 I I I I I I I
City of Hopkins
Statement of Activities
For the Year Ended December 31,2005
Net(Expense)Revenue and
Program Revenues Changes in Net Assets
Operating Capital Grants
Charges for Grants and and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities:
General Government $ 1,380,540 $ 34,760 $ 268,115 $ - $ (1,077,665) $ - $ (1,077,665)
Public Safety 4,883,279 70,597 873,719 - (3,938,963) - (3,938,963)
Health and Welfare 176,590 13,560 103,114 - (59,916) - (59,916)
Highways and Streets 2,334,756 225,523 14,251 - (2,094,982) - (2,094,982)
Urban Redevelopment and Housing 913,645 200,054 77,970 - (635,621) - (635,621)
Culture and Recreation 1,277,501 557,973 134,280 58,871 (526,377) - (526,377)
Interest on long-term debt 1,480,148 - - - (1,480,148) - (1,480,148)
Total Governmental activities 12,446,459 1,102,467 1,471,449 58,871 (9,813,672) - (9,813,672)
Business-type Activities:
Water 1,080,393 987,913 228 - (92,252) (92,252)
Sewer 1,475,587 1,277,724 - 70 - (197,793) (197,793)
Storm Sewer 457,183 666,848 - - - 209,665 209,665
Refuse 739,490 705,138 22,667 16,000 - 4,315 4,315
Pavilion/Ice Arena 395,722 347,343 - - - (48,379) (48,379)
Skate Park 90,268 - - - - (90,268) (90,268)
Housing and Redevelopment Authority 501,731 270,723 135,603 - - (95,405) (95,405)
Total Business-type activities 4,740,374 4,255,689 158,270 16,298 - (310,117) (310,117)
Total government $ 17,186,833 $ 5,358,156 $ 1,629,719 $ 75,169 (9,813,672) (310,117) (10,123,789)
General revenues:
Property taxes 7,845,641 - 7,845,641
Tax increments 970,846 - 970,846
Grants&contributions not restricted 603,307 - 603,307
Unrestricted investment earnings 389,548 44,891 434,439
Gain on sale of capital assets 43,955 43,955
Transfers 107,508 (107,508) -
Total general revenues 9,960,805 (62,617) 9,898,188
Change in net assets 147,133 (372,734) (225,601)
Net assets-beginning 41,148,869 16,408,813 57,557,682
Net assets-ending $ 41,296,002 $ 16,036,079 $ 57,332,081
The notes to the financial statements are an integral part of this statement.
29
City of Hopkins
Balance Sheet
Governmental Funds
December 31,2005
1999-A 1999-B
Tax Increment 1• Permanent 1997 GO Taxable Taxable Non-Major Total
2 Entertainment Improvement Housing Bond Housing Housing Governmental Governmental
General Fund District Revolving Fund Fund Improvement Improvement Funds Funds
Assets
Cash and investments $ 3,516,993 $ 61,847 $ 1,213,772 $ 189,095 $ 175,724 $ 314,251 $ 14,179,236 $ 19,650,918
Taxes receivable 109,831 - - - - - 30,472 140,303
Special assessments receivable - - 1,310,714 2,107,721 2,012,364 3,596,985 597,214 9,624,998
Accounts and rehabilitative loans receivable 135,273 - 2,390 - - - 406,265 543,928
Due from other governments 43,357 - 108,517 - - - 541,715 693,589
interest receivable 25,932 392 6,327 1,195 1,112 1,987 85,908 122,853
Due from other funds 838,601 - - - - - 2,392,964 3,231,565
Inventories 104,873 - - - - - - 104,873
Restricted cash and investments - - - - - 49,032 49,032
Long-term receivable - 1,606,927 - - - - - 1,606,927
Total assets $ 4,774,860 _1___1,6
69,166 $ 2,641,720 $ 2,298,011 $ 2,189,200 $ 3,913,223 _L_1§,282 806 $ 35,768,986
Liabilities and fund balances
Liabilities:
Accounts payable $ 201,632 $ - $ 130,969 $ 76 $ 76 $ - $ 366,661 $ 699,414
Salaries payable 124,289 - - - - - 12,525 136,814
Accrued interest payable - - - - - 11,541 11,541
Due to other funds - 1,696,765 - - - 1,227,127 2,923,892
Due to other governments - - - - - - 624 624
Unearned revenue 137,744 - 1,298,548 2,104,931 2,009,691 3,593,309 1,311,885 10,456,108
Total liabilities 463,665 1,696,765 1,429,517 2,105,007 2,009,767 3,593,309 2,930,363 14,228,393
Fund balances:
Reserved for:
Inventory 104,873 - - - - - - 104,873
Facility project - - - - 49,000 49,000
Rehab loans receivable - - - - - 319,846 319,846
Tax increment districts - - - - - - 3,249,164 3,249,164
Advances to other funds 838,601 - - - - - 2,392,964 3,231,565
Debt service - - - 193,004 179,433 319,914 5,610,761 6,303,112
Unreserved reported in:
Capital projects funds - - 1,212,203 - - - 2,733,297 3,945,500
General fund 3,367,721 - - - - - 3,367,721
Special revenue funds - (27,599) - - - - 997,411 969,812
Total fund balances 4,311,195 (27,599) 1,212,203 193,004 179,433 319,914 15,352,443 21,540,593
Total liabilities and fund balances $ 4,774,860 $ 1,669,166 $ 2,641,720 $ 2,298,011 $ 2,189,200 $ 3,913,223 $ 18,282,806 $ 35,768,986
The notes to the financial statements are an integral part of this statement.
30
i I I i I I I I I I I I I I I I I I I
City of Hopkins, Minnesota
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Assets
December 31,2005
Fund balances of governmental funds $ 21,540,593
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital Assets used in governmental activities are not financial resources and,therefore,not
reported in the governmental funds.
Capital assets 48,153,087
Less accumulated depreciation (12,809,483)
Other long-term assets not available to pay current period expenditures and,therefore,are
deferred in the governmental funds. 9,884,919
Internal service funds are used by the City to charge the costs of certain activities,such
as replacement of City vehicles and equipment. The assets and liabilities of the internal
service funds are included in the governmental activities in the statement of net assets.
4,209,156
Long-term liabilities,including bonds payable and accrued interest payable,are not due
and payable in the current period and,therefore,are not reported in the governmental
funds.
Long-term liabilities (29,770,739)
Less deferred charge for bond issuance costs 88,469
Net assets of governmental activities $ 41.296.002
The notes to the financial statements are an integral part of this statement.
31
City of Hopkins,Minnesota
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2005
Tax Increment Permanent 1999-A 1999-B
1-2 Improvement 1997 G.O. Taxable Taxable Non-major Total
General Entertainment Revolving Housing Housing Housing Governmental Governmental
Fund District Fund Bonds Improv. Improv. Funds Funds
Revenues
Property taxes $ 6,947,865 $ - $ - $ - $ $ - $ 840,692 $ 7,788,557
Tax increments - 47,963 - - - 922,883 970,846
Special assessments - - 698,144 174,620 141,035 256,830 97,633 1,368,262
Intergovernmental 732,468 - - - - - 444,548 1,177,016
Fees,licenses and permits 492,295 - - - - - 151,516 643,811
Charges for services 438,547 - - - - - 578,796 1,017,343
Fines 178,785 - - - - - 28,669 207,454
Interest 72,883 694 21,079 1,966 1,997 3,542 256,175 358,336
Other miscellaneous revenues 320,617 - - - - - 237,958 558,575
Total revenues 9,183,460 48,657 719,223 176,586 143,032 260,372 3,558,870 14,090,200
EXPENDITURES
Current:
General government 1,251,717 - 432 282 408 79,957 1,332,796
Public safety 4,700,413 - - - - 147,923 4,848,336
Health and welfare 61,976 - - - - 114,576 176,552
Highways and streets 1,773,140 - - - - - 39,263 1,812,403
Urban redevelopment and housing - 543 - - - - 910,462 911,005
Culture and recreation 469,140 - - - - 624,559 1,093,699
Debt service:
Principal retirement - - - 60,000 45,000 80,000 2,121,152 2,306,152
Interest and fiscal fees - 29,525 - 105,874 89,223 163,808 1,146,741 1,535,171
Bond issuance costs - - - - - - 41,906 41,906
Capital outlay 149,683 75,000 831,177 - - - 1,433,277 2,489,137
Total expenditures 8,406,069 105,068 831,177 166,306 134,505 244,216 6,659,816 16,547,157
Excess(deficiency)of revenues over
expenditures 777,391 (56,411) (111,954) 10,280 8,527 16,156 (3,100,946) (2,456,957)
Other financing sources(uses)
Transfer in - - 1,625,994 1,625,994
Transfer out (537,492) (210,219) - - (870,775) (1,618,486)
Refunding bonds issued - - - 3,385,000 3,385,000
Discount on refunding debt - - (4,240) (4,240)
Total other financing sources and
uses (537,492) - (210,219) - 4,135,979 3,388,268
32
I I I I I 1 I ! ( I I I I I I I I I I
City of Hopkins,Minnesota
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2005
Tax Increment Permanent 1999-A 1999-B
1-2 Improvement 1997 G.O. Taxable Taxable Non-major Total
Entertainment Revolving Housing Housing Housing Governmental Governmental
General Fund District Fund Bonds Improv. Improv. Funds Funds
Net change in fund balances 239,899 (56,411) (322,173) 10,280 8,527 16,156 1,035,033 931,311
Fund balances--beginning 4,071,296 28,812 1,534,376 182,724 170,906 303,758 14,317,410 20,609,282
Fund balances--ending $ 4,311,195 ($ 27,599) $ 1,212,203 $ 193,004 $ 179,433 $ 319,914 $ 15,352,443 $ 21,540,593
Reconciliation of the Statement of Revenues,Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended December 31,2005
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances—total $ 931,311
Governmental funds report capital outlays as expenditures. However,in the
statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period. 1,706,069
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds (1,679,283)
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt uses the current financial resources of
governmental funds. Neither transaction,however,has any effect on net assets. Also,
governmental funds report the effect of issuance costs,premiums,discounts,and similar items
when debt is first issued,whereas these amounts are deferred and amortized in the statement
of activities. This amount is the net effect of these differences in the treatment of long-term
debt related items. (981,037)
External revenues and expenditures of the internal service funds reported in the statement of activities
are not reported as revenues and expenditures in governmental funds. 170,073
Change in net assets of governmental $ 147,133
The notes to the financial statements are an integral part of this statement.
33
City of Hopkins,Minnesota
1 of 5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual _
General Fund
For the Year Ended December 31,2005
Variance with
final budget
Budget positive
Original Final Actual (negative)
Revenues
Taxes
General property taxes $ 6,046,029 $ 6,144,919 $ 6,098,709 $ (46,210)
Fiscal disparities 948,049 849,159 849,156 (3)
Total Taxes 6,994,078 6,994,078 6,947,865 (46,213)
Licenses and permits
Business 132,775 132,775 134,856 2,081
Non-business 358,200 358,200 357,439 (761)
Total Licenses and permits 490,975 490,975 492,295 1,320
Intergovernmental
Market value aid credit 279,000 279,000 279,987 987
State grants 152,110 152,110 162,363 10,253
Insurance premium-police 142,900 142,900 164,530 21,630
Insurance premium-fire 79,000 79,000 101,841 22,841
Federal grants 500 20,291 20,600 309
Other grants 8,500 8,500 3,147 (5,353)
Total Intergovernmental 662,010 681,801 732,468 50,667
Fines and forfeitures
Court fines 137,000 137,000 178,785 41,785
Charges for services
General government 3,900 3,900 9,652 5,752
Public safety 51,800 51,800 77,762 25,962
Public works 5,400 5,400 170,776 165,376 --
Recreation 65,100 65,100 50,443 (14,657)
Community development 102,351 102,351 129,914 27,563
Total Charges for services 228,551 228,551 438,547 209,996
Other
Investment earnings 110,000 110,000 72,883 (37,117)
Franchise fees 290,000 290,000 307,457 17,457
Miscellaneous 9,150 14,150 13,160 (990)
Total Other 409,150 414,150 393,500 (20,650)
Total Revenues $ 8,921,764 $ 8,946,555 $ 9,183,460 $ 236,905
Expenditures
General Government:
Mayor and council
Salaries and employee benefits $ 26,509 $ 26,509 $ 25,830 $ 679
Materials,supplies and services 70,804 70,804 62,370 8,434
Total 97,313 97,313 88,200 9,113
34
City of Hopkins,Minnesota
2 of 5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31,2005
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
General Government,(continued):
Administrative services
Salaries and employee benefits 405,980 405,980 385,291 20,689
Materials,supplies and services 73,193 73,827 55,714 18,113
Total 479,173 479,807 441,005 38,802
Less expenditures charged to other activities (87,085) (87,085) (102,786) 15,701
Net 392,088 392,722 338,219 54,503
Finance
Salaries and employee benefits 293,516 293,516 290,313 3,203
Materials,supplies and services 51,981 57,052 61,398 (4,346)
Total 345,497 350,568 351,711 (1,143)
Less expenditures charged to other activities (188,669) (188,669) (184,778) (3,891)
Net 156,828 161,899 166,933 (5,034)
Legal Services
Materials,supplies and services 136,480 136,480 116,581 19,899
Municipal Building
Salaries and employee benefits 89,923 89,923 106,288 (16,365)
"- Materials,supplies and services 196,663 196,663 225,394 (28,731)
Capital outlay 5,000 5,000 - 5,000
Total 291,586 291,586 331,682 (40,096)
Less expenditures charged to other activities (167,760) (167,760) (172,500) 4,740
Net 123,826 123,826 159,182 (35,356)
_ Elections
Salaries and employee benefits 12,762 12,762 12,552 210
Materials,supplies and services 9,740 9,740 10,106 (366)
Total 22,502 22,502 22,658 (156)
City Clerk and Reception
Salaries and employee benefits 117,048 117,048 113,496 3,552
Materials,supplies and services 11,466 21,099 24,775 (3,676)
Capital outlay - 11,155 11,055 100
Total 128,514 149,302 149,326 (124)
Less expenditures charged to other activities (34,000) (34,000) (34,045) 45
Net 94,514 115,302 115,281 (79)
Assessing
Salaries and employee benefits 71,564 71,564 69,654 1,910
Materials,supplies and services 100,673 100,673 99,775 898
Total 172,237 172,237 169,429 2,808
Less expenditures charged to other activities (20,762) (20,762) - (20,762)
Net 151,475 151,475 169,429 (17,954)
35
City of Hopkins,Minnesota
3 of 5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual _
General Fund
For the Year Ended December 31,2005
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
General Government,(continued):
Planning and economic development
Salaries and employee benefits 90,100 90,100 96,329 (6,229)
Materials,supplies and services 17,749 17,749 8,738 9,011
Total 107,849 107,849 105,067 2,782
Less expenditures charged to other activities (18,778) (18,778) (18,778)
Net 89,071 89,071 86,289 2,782
Total General Government 1,264,097 1,290,590 1,262,772 27,718
Public Safety:
Police
Police Administration
Salaries and employee benefits 304,188 304,188 312,726 (8,538)
Materials,supplies and services 124,762 124,762 96,017 28,745
Total 428,950 428,950 408,743 20,207
Less expenditures charged to other activities (302,000) (302,000) (301,887) (113)
Net 126,950 126,950 106,856 20,094
Police Patrol and Investigation
Salaries and employee benefits 2,032,098 2,032,098 2,114,001 (81,903)
Materials,supplies and services 581,259 581,259 603,132 (21,873)
Capital outlay 70,000 70,000 71,159 (1,159)
Total 2,683,357 2,683,357 2,788,292 (104,935)
Police Services
Salaries and employee benefits 560,297 560,297 571,403 (11,106)
Materials,supplies and services 205,762 205,762 207,147 (1,385)
Capital outlay 8,400 8,400 2,550 5,850
Total 774,459 774,459 781,100 (6,641)
Total Police 3,584,766 3,584,766 3,676,248 (91,482)
Fire
Salaries and employee benefits 335,832 335,832 402,521 (66,689)
Materials,supplies and services 275,347 275,347 266,769 8,578
Capital outlay 10,000 33,919 46,188 (12,269)
Total 621,179 645,098 715,478 (70,380)
Inspections
Salaries and employee benefits 347,116 347,116 331,810 15,306
Materials,supplies and services 112,233 112,233 96,774 15,459
Total 459,349 459,349 428,584 30,765
Total Public safety 4,665,294 4,689,213 4,820,310 (131,097)
36
City of Hopkins,Minnesota
4of5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31,2005
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
Health and Welfare:
Inspections
Salaries and employee benefits 44,814 44,814 42,269 2,545
_ Materials,supplies and services 23,453 23,453 19,707 3,746
Total 68,267 68,267 61,976 6,291
Total Health and welfare 68,267 68,267 61,976 6,291
Highways and Streets:
Public works buildings and equipment services
Salaries and employee benefits 190,563 190,563 191,355 (792)
Materials,supplies and services 69,484 69,484 64,022 5,462
Capital outlay 6,200 6,200 3,800 2,400
Total 266,247 266,247 259,177 7,070
Less expenditures charged to other activities (208,056) (208,056) (200,419) (7,637)
Net 58,191 58,191 58,758 (567)
Public Works Administration and Engineering
Salaries and employee benefits 291,332 291,332 277,250 14,082
Materials,supplies and services 44,043 45,313 57,384 (12,071)
Total 335,375 336,645 334,634 2,011
Less expenditures charged to other activities (205,608) (205,608) (220,454) 14,846
Net 129,767 131,037 114,180 16,857
Streets and Alleys
Salaries and employee benefits 346,955 346,955 315,450 31,505
Materials,supplies and services 305,939 305,939 303,972 1,967
Capital outlay 18,000 18,000 13,866 4,134
Total 670,894 670,894 633,288 37,606
_ Less expenditures charged to other activities (108,584) (108,584) (108,584)
Net 562,310 562,310 524,704 37,606
Sidewalk Repair and Mall Maintenance:
Salaries and employee benefits 26,099 26,099 40,047 (13,948)
Materials,supplies and services 39,256 39,256 47,613 (8,357)
Total 65,355 65,355 87,660 (22,305)
Signs,Signals and Lighting:
Salaries and employee benefits 70,332 70,332 73,381 (3,049)
Materials,supplies and services 232,536 232,536 238,407 (5,871)
Total 302,868 302,868 311,788 (8,920)
37
City of Hopkins,Minnesota -
5 of 5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual _
General Fund
For the Year Ended December 31,2005
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
Highways and Streets,(continued):
Municipal parks and tree service:
Salaries and employee benefits 523,214 523,214 466,186 57,028 -
Materials,supplies and services 223,997 223,997 227,530 (3,533)
Capital outlay 10,000 10,000 1,065 8,935
Total 757,211 757,211 694,781 62,430
Total Highways and Streets 1,875,702 1,876,972 1,791,871 85,101
Culture and Recreation:
Activity center
Salaries and employee benefits 180,756 180,756 180,272 484
Materials,supplies and services 95,963 95,963 102,018 (6,055)
Total 276,719 276,719 282,290 (5,571)
Park and Recreation -
Salaries and employee benefits 55,185 55,185 37,350 17,835
Materials,supplies and services 149,500 149,500 149,500 -
Total 204,685 204,685 186,850 17,835 -
Total Culture and Recreation 481,404 481,404 469,140 12,264
Unallocated
Materials,supplies and services 150,000 41,282 - 41,282
Total Expenditures $ 8,504,764 $ 8,447,728 $ 8,406,069 $ 104,897
Other Financing Sources(Uses):
Transfers out: (417,000) (554,492) (537,492) (17,000) -
Net change in fund balance - (55,665) 239,899 295,564
Fund Balance-January 1 4,071,296 4,071,296 4,071,296 -
Fund Balance-December 31 $ 4,071,296 $ 4,015,631 $ 4,311,195 $ 295,564
The notes to the financial statements are an integral part of this statement.
38
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 1.2-ENTERTAINMENT CENTER SPECIAL REVENUE FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
final budget
_ Budget Amount positive
Original Final Actual (negative)
Revenues:
Taxes:
Tax increment $ 49,500 $ 49,500 $ 47,963 $ (1,537)
Investment earnings 700 700 694 (6)
Total Revenues 50,200 50,200 48,657 (1,543)
Expenditures:
Materials,supplies and services 400 400 543 (143)
Capital outlay:
Public improvements 28,544 103,544 104,525 (981)
Total Expenditures 28,944 103,944 105,068 (1,124)
Net change in fund balance 21,256 (53,744) (56,411) (2,667)
Fund Balance-January 1 28,812 28,812 28,812 -
Fund Balance-December 31 $ 50,068 $ (24,932) $ (27,599) $ (2,667)
39
CITY OF HOPKINS,MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31,2005
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
ASSETS
Current assets
Cash and investments $ 520,768 $ 573,248 $ 708,830 $ 600,200 $ 2,403,046 $ 1,916,998
Accounts receivable 138,373 98,077 - 35,182 271,632 4,045
Accrued interest receivable 3,582 3,860 6,721 2,119 16,282 10,995
Due from other governments - 442 442 _
Advances to other funds - - - - 622,656
Loan receivable - - 227,909 227,909
Inventory 14,781 9,538 3,404 27,723
Prepaid expenses - - 16,044 16,044
Restricted cash and investments - 250,000 250,000
Total current assets 677,504 684,723 965,993 884,858 3,213,078 2,554,694
Noncurrent assets
Capital Assets:
Land 16,447 5,150 26,800 170,299 218,696
Buildings and structures 44,486 - - 6,710,400 6,754,886
Distribution system 8,563,628 5,940,338 8,246,720 55,310 22,805,996 -
Machinery and equipment 331,918 293,573 12,876 644,541 1,282,908 6,310,699
Construction in progress 28,192 60,734 340,510 102,902 532,338 - _
Less accumulated depreciation (4,315,040) (2,943,212) (1,968,111) (3,217,295) (12,443,658) (3,629,745)
Net noncurrent assets 4,669,631 3,356,583 6,658,795 4,466,157 19,151,166 2,680,954
Total Assets 5,347,135 4,041,306 7,624,788 5,351,015 22,364,244 5,235,648 _
LIABILITIES
Current Liabilities:
Accounts payable 23,799 1,937 13,864 76,471 116,071 311,964
Salaries payable 5,642 2,764 419 23,556 32,381
Due to other funds - 307,673 307,673
Due to other governments - 205,650 205,650 _
Compensated absences payable 39,450 44,111 3,728 36,059 123,348 714,528
Uneamed revenue - - 2,070 2,070
Accrued interest payable 32,780 53,611 1,925 88,316
Revenue bonds-current 120,000 330,000 450,000 -
Total Current Liabilities 221,671 254,462 401,622 447,754 1,325,509 1,026,492
Noncurrent Liabilities: _
Advance from other funds - - 622,656 622,656
Revenue bonds payable 1,395,000 2,985,000 - 4,380,000
Total noncurrent liabilities 1,395,000 2,985,000 622,656 5,002,656 -
Total Liabilities 1,616,671 254,462 3,386,622 1,070,410 6,328,165 1,026,492
NET ASSETS
Invested in capital assets,
net of related debt 3,154,631 3,356,583 3,343,795 4,466,157 14,321,166 2,680,954
Restricted for debt service - - 250,000 250,000 -
Unrestricted 575,833 430,261 644,371 (185,552) 1,464,913 1,528,202 _
Total net assets $ 3,730,464 $ 3,786,844 $ 4,238,166 $ 4,280,605 $ 16,036,079 $ 4,209,156
The notes to the financial statements are an integral part of this statement.
40
CITY OF HOPKINS,MINNESOTA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31,2005
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Operating revenues:
Charges for services $ 949,238 $ 1,258,415 $ 661,202 $ 1,280,834 $ 4,149,689 $ 315,254
Other 38,675 19,309 5,646 42,370 106,000 -
Total Operating Revenues 987,913 1,277,724 666,848 1,323,204 4,255,689 315,254
Operating expenses:
Cost of sales and service 621,514 1,196,490 66,810 1,196,647 3,081,461 30,669
Administration 167,418 181,641 77,232 179,751 606,042 -
Depreciation 211,929 97,456 182,928 261,607 753,920 289,679
Total Operating Expenses 1,000,861 1,475,587 326,970 1,638,005 4,441,423 320,348
Operating income(loss) (12,948) (197,863) 339,878 (314,801) (185,734) (5,094)
Nonoperating revenues(expenses):
Investment earnings 10,216 12,731 15,649 6,295 44,891 31,212
Interest/fiscal agent expense (79,532) (130,213) (4,690) (214,435)
Intergovernmental grants - - - 158,270 158,270
Gain on sale of assets 228 70 - 16,000 16,298 43,955
Transfer of assets - - (84,516) (84,516) -
Total nonoperating revenues
(expenses) (69,088) 12,801 (114,564) 91,359 (79,492) 75,167
Income(loss)before transfers (82,036) (185,062) 225,314 (223,442) (265,226) 70,073
Transfers in(out) (45,000) (50,000) (25,000) 12,492 (107,508) 100,000
Change in net assets (127,036) (235,062) 200,314 (210,950) (372,734) 170,073
Total net assets-beginning 3,857,500 4,021,906 4,037,852 4,491,555 16,408,813 4,039,082
Total net assets-ending $ 3,730,464 $ 3,786,844 $ 4,238,166 $ 4,280,605 $ 16,036,079 $ 4,209,155
The notes to the financial statements are an integral part of this statement.
41
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2005
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Cash Flows from Operating Activities
Receipts from customers and users $ 979,591 $ 1,270,304 $ 666,848 $ 1,383,950 $ 4,300,693 $ 54,289
Receipts from interfund services provided - - - 620,105
Internal activity-payments to other funds - - - (44,971) (44,971)
Internal activity-payments from other funds - - - 3,300 3,300
Payments to suppliers (302,228) (1,260,927) (21,433) (941,760) (2,526,348) 270,914
Payments to employees (320,126) (164,795) (40,288) (505,418) (1,030,627) -
Payments for interfund services used - - - - - (2,362)
Payments for interfund services used (167,418) (181,641) (77,232) (105,261) (531,552) 59,073
Net cash provided by(used in)operating activities 189,819 (337,059) 527,895 (210,160) 170,495 1,002,019
Cash Flows from Noncapital Financing Activities
Intergovernmental grants - - 158,270 158,270 -
Transfers in(out) (45,000) (50,000) (25,000) 12,492 (107,508) 100,000
Net cash provided by(used in)noncapital financing activities (45,000) (50,000) (25,000) 170,762 50,762 100,000
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets - - - (14,971) (14,971) (740,386)
Construction of capital assets (66,808) (96,416) (99,210) (62,764) (325,198)
Proceeds from Sales of capital assets 228 70 - 16,000 16,298 43,955
Interest and other payments (81,832) - (134,549) (4,564) (220,945) -
Bond payments (115,000) - (325,000) - (440,000)
Net cash used in capital and related
financing activities (263,412) (96,346) (558,759) (66,299) (984,816) (696,431)
Cash Flows From Investing Activities 10,782 16,358 16,415 7,366 50,921 27,091
Net decrease in cash and investments (107,811) (467,047) (39,449) (98,331) (712,638) 432,679
Cash and Investments-January 1 628,579 1,040,295 748,279 698,531 3,115,684 1,484,319
Cash and Investments-December 31 $ 520,768 $ 573,248 $ 708,830 $ 600,200 $ 2,403,046 $ 1,916,998
42
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS,(CONT.)
PROPRIETARY FUNDS
For the Year Ended December 31,2005
Reconciliation of operating income(loss)to net
cash provided by operating activities:
(197,863) $ 339,878 $ (314,801) $ (185,734) $ (5,094)
Operating income(loss) $ (12,948) $
Adjustments to reconcile operating income
(loss)to net cash provided by(used in)operating
activities:
Depreciation expense 211,929 97,456 182,928 261,607 753,920 289,679
(Increase)decrease in:
Accounts receivable (8,322) (7,420) - 27,085 11,343 322,796
36,344
Due from other funds
Due from other governments - - (442) 38,000 37,558 =
Inventory (1,394) (848) - (407) (2,649)
Prepaid expense - - - (1,933) (1,933) -
Accounts,compensated absences and accrued interest payable 554 (235,634) 5,531 (173,701) (403,250) 358,294
Due to other funds - - - (44,971) (44,971)
Due to other governments - 7,250 - - 7,250 =
Unearned revenue - - (1,039) (1,039)
Net cash provided by(used in)operating activities $ 189,819 $ (337,059) $ 527,895 $ (210,160) $ 170,495 $ 1,002,019
The notes to the financial statements are an integral part of this statement.
43
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31,2005 —
1 SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
The City of Hopkins, Minnesota (the City) is a charter City, which was approved December 2, 1947. The City
operates pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council -Manager
form of government.
The financial statements of the City have been prepared in conformity with U.S. generally accepted accounting
principles as applied to governmental units by the Government Accounting Standards Board (GASB). The more —
significant accounting policies of the City are described below.
A. REPORTING ENTITY
In accordance with GASB pronouncements, the City's financial statements include all funds and departments of
the City and its component units entities, for which the City is considered to be financially accountable. A
blended component unit, although legally separate entity is, in substance,part of the City's operations and so data —
froin this unit is combined with data of the primary government. The City's blended component unit has a March
31 year-end,however when blended with the City it is shown with a December 31 year-end.
Blended Component Unit
Housing and Redevelopment Authority in and for the City of Hopkins (HRA) —
The HRA was created by the City to carry out certain redevelopment projects and low-income rental housing.
Individuals on the City Council represent the governing board of the HRA. The housing activity is supported in
part by federal subsidies. There is an extensive trust agreement between the HRA and HUD regarding the facility. —
The HRA is included in the City's enterprise funds. Separate financials are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS —
The government-wide financial statements (i.e., statement of net assets and the statement of changes in net assets)
report information on all activities of the primary government and its component units. The interfund services —
provided and used are not eliminated in the process of consolidation. Governmental activities,which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general revenues. —
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
C. MEASUREMENT FOCUS,BASIS OF ACCOUNTING,AND FINANCIAL STATEMENT PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as
44
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
revenue as soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at
year end.
Governmental funds are accounted for using the current financial resources measurement focus and the modified
accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become
measurable and available). "Measurable"means the amount of the transaction can be determined and"available"
means collectible with the current period or within sixty days thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental
revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual
include fees and miscellaneous revenues; such revenues are recorded only as received because they are not
measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund
liability is incurred, except for principal and interest on general long-term debt and compensated absences that are
recognized when due and payable.
The City reports the following major governmental funds:
The general fund is the primary operating fund of the City. It is used to account for all financial resources
except those required to be accounted for in another fund.
The tax increment 1-2 entertainment district fund accounts for resources accumulated for the repayment of
debt on the entertainment district tax increment project.
The permanent improvement revolving fund accounts for resources accumulated and payments made for street
improvements throughout the City.
_ The 1997 GO housing bond fund accounts for resources accumulated and payments made for principal and
interest on long-term debt issued to pay for Westbrook Patio Home improvements. The owners of these town
homes pay an annual fee,which in turn pays for the bond issue.
The 1999A taxable housing improvement bond fund accounts for resources accumulated and payments made
for principal and interest on long-term debt issued to pay for Valley Park Condominium improvements. The
owners of these condominiums pay an annual fee,which in turn pays for the bond issue.
The 1999B taxable housing improvement bond fund accounts for resources accumulated and payments made
for principal and interest on long-term debt issued to pay for Westbrook Patio Home improvements. The
owners of these town homes pay an annual fee,which in turn pays for the bond issue.
The City reports the following major proprietary funds:
The water fund accounts for the operations of the City-owned water distribution system. The water bonds of
2000 are included as part of this fund since revenues of the water fund are pledged to pay principal and interest
on this bond.
The sewer fund accounts for the operations of the City-owned sewer lift stations and disposal system.
_ The storm sewer fund accounts for the operations and improvements of the storm water drainage system. The
storm water bond issues of 1999C, 2001,and 2003 are included as part of this fund since revenues of the storm
sewer fund are pledged to pay principal and interest on these bonds.
45
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005 —
Additionally, the City reports the following fund types: —
Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest,and related costs.
Capital Project Funds - Capital project funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and infrastructure, other than those financed by
proprietary funds or special revenue funds. —
Proprietary Funds
Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a —
manner similar to private business enterprises, where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a continuing basis,
be financed or recovered primarily through user charges. —
Internal Service Funds – Internal service funds are used to account for the financing of goods and services
provided by one department to other departments of the City on a cost-reimbursement basis. Internal service —
funds are used for equipment replacement, insurance deductions and employee benefits.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those standards —
do not conflict with or contradict guidance of the GASB. Governments also have the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same
limitation. The government has elected not to follow subsequent private-sector guidance. —
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. —
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as prograin —
revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and —
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues of the City enterprise funds and
internal service funds are charges to customers for sales and service. Operating expenses for enterprise funds and —
internal service funds include the cost of sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, and then use unrestricted resources as they are needed.
46
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
D. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments pursuant
to Minnesota Statutes (see note 4). Earnings from such investments are allocated to the respective funds on the
basis of applicable cash balance participation by each fund. Investments in commercial paper with maturity date
of less than one year at the date of purchase are reported at cost or amortized cost, which approximates fair value.
Investments other than commercial paper are reported at fair value,based on quoted market price.
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which
is used essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary
funds consider all investments to be cash equivalents. Restricted cash and investments are reported separately on
the financial statement.
E. 1NTERFUND RECEIVABLES/PAYABLES
Activity between funds that is representative of lending/borrowing arrangements and transactions between funds
that are outstanding at the end of the fiscal year are referred to "due to/from other funds" Any residual balances
outstanding between the governmental activities and business-type activities are reported in the government-wide
financial statements as"internal balances."
The non-current portion of due to/from other funds is offset by a fund balance reserve account in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
F. INVENTORIES AND PREPAID ITEMS
All inventories are valued at cost using the first-in/first-out(FIFO)method. Inventories of governmental funds are
recorded as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements.
G. RESTRICTED CASH AND INVESTMENTS
A portion of the funds in the Housing Rehab and Storm Sewer Utility funds are classified as restricted cash and
investments on the statement of net assets-balance sheet because their use is limited by applicable bond covenants
or program agreements.
H. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems,and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements and the proprietary
fund financial statements. The City defines capital assets as assets with an initial, individual cost of more than
$1,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated
capital assets are recorded at estimated fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets
lives are not capitalized.
47
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005 —
Buildings, equipment, and infrastructure of the City and the HRA are depreciated using the straight-line method
over the estimated useful lives as follows:
Buildings 30- 40 years
Mains and Lines 40- 50 years
Streets 20- 25 years —
Improvements 10- 20 years
Vehicles 3 - 30 years
Equipment 3 - 20 years —
I. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Employees hired prior to
August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month of full-time service,
instead of flex leave.
Employees hired prior to August 1, 1998, that have not opted for flex leave, shall be entitled to severance pay,
after completion of five years of continuous City employment. Severance pay is calculated by multiplying the
total number of continuous years in the City employ and/or accumulated sick leave by the daily wage rate —
prevailing at date of severance, at one day per year of such employment, to a maximum of 20 days. Such
severance money shall be paid in case of separation caused by death, eligible retirements, or medically attested
disability preventing an employee from performing the major duties of the position or separation for non- —
disciplinary reasons.
In addition to the pension benefits described in Note 9, the City provides post-retirement health care benefits to
employees who were hired prior to July 1, 1993 and have been with the City for at least ten years and are either —
(1) age 60 years or older, or (2) eligible for full PERA retirement benefits. These employees may retire and
receive full single health and life insurance coverage until age 65. Currently 18 employees meet those eligibility
requirements. During the year expenditures of approximately $72,765 were incurred for post-retirement health —
care benefits.
Accumulated vacation, flex and vested severance pay is reported as an expense and an accrued liability as the —
benefits accrue to employees in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in the governmental funds only if benefits have matured as a result of employee
resignations and retirements. The employee benefits internal service fund reports the governmental funds'
liability for compensated absences on the accrual basis. —
J. LONG-TERM OBLIGATIONS
In the government-wide financial statements, and proprietary fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities,
or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs are —
deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium
or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the governmental fund financial statements bond premiums and discounts, as well as bond issuance costs are —
recognized during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
48
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
K. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or legally restricted by outside parties for use for a specific purpose. Designations of
fund balance represent tentative management plans that are subject to change.
L. INTERFUND TRANSACTIONS
Inter-fund services provided and used are accounted for as revenues and expenditures. Transactions that
_ constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another
fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is
reimbursed.
All other interfund transactions are reported as transfers.
M. PROPERTY TAXES
Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County
(the County) for collection in the following year. In the State of Minnesota, counties act as collection agents for
_ all property taxes. The County spreads all levies over assessable property. Such taxes become a lien on January 1
and are recorded as receivables by the City at that date.
Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal
property taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County
provides tax settlements to cities and other local governments three times a year, on or before January 25, July 5
and November 30.
In the governmental fund financial statements property taxes are accrued and recognized as revenue for
collections within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as
_ delinquent taxes receivable, and are fully offset by deferred revenues because they are not available to finance
current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not
expected to be material.
N. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Commercial Development Revenue Note/Bonds in accordance with the
Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in
the public interest. The obligations are secured by the property financed and are payable solely from payments
_ received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired
facilities transfers from the bond holder to the private-sector entity served by the debt issuance. Neither the City,
the State, nor any political subdivision thereof is obligated in any manner for repayment of the obligations.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December
— 31, 2005, there were 12 note/bond issues outstanding, with an aggregate principal amount payable of
approximately$47 million.
O. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles U.S. generally accepted
_ accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
49
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005 —
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE
SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds
and net assets– governmental activities as reported in the government-wide statement of net assets. One element
of that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the —
current period and therefore are not reported in the funds. Details of this difference are as follows:
Bonds payable $ 29,161,284 _
Accrued interest payable 609,455
Net adjustment to reduce fund balance–total governmental
funds to arrive at net assets–governmental activities 29.770.739
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT-
WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances – total governmental funds and change in net assets of —
governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains, "Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation —
expense." The details of this difference are as follows:
Capital outlay $2,571,001 —
Depreciation expense (864,932)
Net adjustment to increase net changes in fiord balances–
total governmental funds to arrive at changes in net assets
of governmental activities 1.706.069 —
Another element of that reconciliation explains that, "the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt uses financial resources
of the governmental funds. Neither of these transactions has any effect on the net assets. Also, governmental
funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the statement of net changes." The details of these differences are as —
follows:
Issuance of general obligation refunding bonds (3,385,000)
Establish deferred bond discount 4,240 —
Principal debt service payments 2,306,152
Deferred issuance costs ( 38,548)
Reverse prior years interest expense 664,478
Accrue interest expense for current year (609,455)
Net adjustment to decrease net changes in fund balances–
total governmental funds to arrive at changes in net assets _
of governmental activities $( 981.0371
50
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
3 STEWARDSHIP,COMPLIANCE AND ACCOUNTIBILITY
A. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds except the Hennepin County CDBG special revenue fund, the Block 64 Development special
revenue fund, the debt service funds and the capital projects funds, which are not budgeted. A capital
improvement plan is reviewed annually by the City Council for the capital projects funds and utility funds.
However, appropriations for major projects are not adopted until the actual bid award of the improvement. The
appropriations are not reflected in the financial statements. All annual appropriations lapse at fiscal year end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements and set
forth in Section 7.04 of the City Charter.
1. The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed
budget and an explanatory budget message in a form and manner as prescribed by the City Charter.
2. The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer
comments.
3. The Council shall adopt the tax levy by resolution no later than a December date, which is annually
established by law for the county auditor to levy taxes. The budget shall set forth the total for each budgeted
fund with such segregation as to objects and purposes of expenditures as the Council deems necessary for
purposes of budget control.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund;however,
any revisions that alter the total expenditures of any fund must be approved by the City Council and are
limited to the amount revenues exceed the budgets or authorize the transfer of sums from unexpended
_ balances to other purposes. Budgeted expenditure appropriations lapse at year-end. The level of legal control
is at the fund level.
5. The Council made several supplemental budgetary appropriations throughout the year. The general fund
budgetary increase was $80,456, which is comprised of an increase for a transfer to the equipment
replacement fund of$100,000, minor increase in various departments for capital requests and a reduction to
the amount budgeted for contingencies. Other budgetary adjustments include a $45,000 adjustment in the
state chemical assessment team fund to account for grant revenues and their related expenditures, a $30,000
adjustment in the parking fund to account for structural parking ramp work, and other minor adjustments in
various tax increment funds to account for changes in planned expenditures.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2005, actual expenditures exceeded the budgeted amount in the Tax Increment
District 1-2 fund by $1,124, State Chemical Assessment Team fund by $26,398, the Depot Coffee House fund by
$18,735, the Art Center fund by $2,519, Tax Increment District 2-1 fund by $3,054, Tax Increment District 2-8
fund by $7,132, and the Tax Increment District 2-10 fund by $43,838. These over expenditures were funded by
greater than anticipated revenues in the case of the State Chemical Assessment Team,Depot Coffee House and Art
Center fund and by available fund balances in the Tax Increment funds.
_ Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process
are funds that are completely reimbursable from the federal government. The Community Development Block
Grant is a non-budgeted fund.
51
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005 —
C. FUND BALANCE DEFICITS —
At December 31, 2005, the following funds had deficit fund balances or net assets. These deficits will be
corrected through future tax levies,contributions, grants or charges for services: —
Art Center $ 888,022
Tax Increment 2.6 Sonoma District $ 381,015
Tax Increment 2.1 R.L. Johnson District $ 54,545 —
Tax Increment 1.2 Entertainment District $ 27,599
State Chemical Assessment $ 2,128
4. DEPOSITS AND INVESTMENTS
As of December 31,2005 the City had the following investments: —
Investment Type Fair Value
U.S. Government Agency Securities $11,163,985
Commercial paper 9,358,015 —
Money market 3,389,676
Deposits 358,318
Total fair value $24.269.994 —
Interest rate risk — Interest rate risk is the risk that the fair value of investments will be adversely affected by a
change in interest rates. In accordance with its investment policy,the city manages its exposure to declines in fair —
values by holding long-term government investments to maturity and by investing in commercial paper with
maturity dates of 270 days or less.
At of December 31,2005 the City had the following investment maturities:
Investment maturities(in years)
Fair Less No
Value than one 1-5 maturity —
Investment Type:
U.S.Agencies $ 11,163,985 - 11,163,985 -
Commercial Paper 9,358,015 9,358,015 - - —
Money market accounts 3,389,676 - - 3,389,676
Deposits 358,318 - - 358,318
$ 24,269,994 9,358,015 11,163,985 3,747,994 —
Credit risk — Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its _
obligations. Credit risk is measured using credit quality ratings of investments in debt securities as described by
nationally recognized rating agencies such as Standard & Poor's and Moody's. According to the City's
investment policy commercial paper shall be restricted to issues, which mature in 270 days or less with a rating of
A-1 (Moody's),P-1 (Standard&Poor's)or F-1 (Fitch)among at least two of the three rating agencies. —
The City is authorized by Minnesota Statutes to invest in the following:
(a) Direct obligations or obligations guaranteed by the United States or its agencies. —
52
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2005
(b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in(a)above.
(c) General obligations in the State of Minnesota or any of its municipalities
(d) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality,and maturity in 270 days or less; and
(f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries.
(g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
_ System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government
- securities to the Federal Reserve Bank of New York,or certain Minnesota securities broker-dealers.
The following table lists the credit quality ratings per Moody's and/or Standard and Poor's and/or Fitch of the
City's investments at December 31,2005.
Fair Quality Ratings
Value AAA A-1/P-1/F-1 Unrated
Investment Type:
U.S.Agencies $ 11,163,985 11,163,985 - -
_— Commercial Paper 9,358,015 - 9,358,015 -
Money market accounts 3,389,676 - - 3,389,676
Demand deposits 358,318 - - 358,318
$ 24,269,994 11,163,985 9,358,015 3,747,994
Custodial credit risk
Deposits_For deposits, this is the risk that in the event of a bank failure, the City's deposits may not be
returned to it. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or
_ collateral. The market value of collateral pledged must equal 110% of the deposits not covered by
insurance or bonds (140%in the case of mortgage notes pledged). Authorized collateral includes the legal
investments described above, as well as certain first mortgage notes, and certain other state or local
government obligations. Minnesota Statutes require that securities pledged as collateral be held in
safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. At
December 31, 2005 the City had no deposits that were uninsured or uncollateralized. The deposits were
insured or collateralized by securities held by the City's agent in the City's name.
Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All investments held by the City are insured or registered or are held by
the City or its agent in the City's name. The City has the ability and intent to hold its investments to
maturity and therefore intends to recover the full carrying value of its investment portfolio upon maturity.
Concentration of credit risk–The City's investment policy does not specifically address the issue of concentration
of investments by issuer.
53
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
5. CAPITAL ASSETS
Capital asset activity for the year ended December 31,2005 were as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets,not being depreciated --
Land $ 5,772,023 $ - $ - $ 5,772,023
Construction in Progress 14,762,523 2,166,275 - 16,928,798 —
Total not being depreciated 20,534,546 2,166,275 - 22,700,821 —
Capital assets,being depreciated _
Buildings 6,026,566 90,382 - 6,116,948 —
Infrastructure 15,470,857 25,761 - 15,496,618
Other Improvements 1,972,061 - - 1,972,061 _—
Vehicles 2,694,553 553,230 (129,291) 3,118,492
Machinery&Equipment 4,705,446 475,740 (122,340) 5,058,846
Total being depreciated $ 30,869,483 $ 1,145,113 $ (251,631) $ 31,762,965 '—
Less accumulated depreciation:
Buildings (2,004,754) (164,904) - (2,169,658) --
Infrastructure (7,625,031) (531,289) - (8,156,320)
Other Improvements (1,266,582) (49,270) - (1,315,852)
Vehicles (1,903,826) (94,164) 101,785 (1,896,205) —
Machinery&Equipment (2,708,549) (314,984) 122,340 (2,901,193)
Total accumulated depreciation (15,508,742) (1,154,611) 224,125 (16,439,228)
Total capital assets,being
depreciated,net 15,360,741 (9,498) (27,506) 15,323,737
Governmental activities capital —
assets,net $ 35,895,287 $ 2,156,777 $ (27,506) $ 38,024,558
54
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities:
Capital assets,not being depreciated
Land $ 211,697 $ 7,000 $ - $ 218,697
Construction in Progress 1,098,778 204,033 (770,474) 532,337
Total not being depreciated 1,310,475 211,033 (770,474) 751,034
Capital assets,being depreciated
Buildings 6,627,720 157,548 (30,382) 6,754,886
Infrastructure 17,905,748 385,499 - 18,291,247
Other Improvements 4,190,273 324,475 - 4,514,748
Vehicles 746,141 4,971 (109,379) 641,733
Machinery&Equipment 725,811 16,159 (100,793) 641,177
Total being depreciated $ 30,195,693 $ 888,652 $ (240,554) $ 30,843,791
Less accumulated depreciation:
Buildings (2,712,531) (216,411) 15,190 (2,913,752)
_ Infrastructure (7,922,150) (366,644) - (8,288,794)
Other Improvements (440,274) (102,280) - (542,554)
Vehicles (308,713) (41,788) 109,379 (241,122)
Machinery&Equipment (472,109) (26,797) 41,469 (457,437)
Total accumulated depreciation (11,855,777) (753,920) 166,038 (12,443,659)
Total capital assets,being
depreciated,net 18,339,916 134,732 (74,516) 18,400,132
Business-type activities capital
assets,net $ 19,650,391 $ 345,765 $ (844,990) $ 19,151,166
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 43,614
Public safety 32,043
Highways and streets 603,122
_ Urban redevelopment and housing 2,640
Culture and recreation 183,513
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 289,679
Total depreciation expense—governmental activities 1 154 11
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2005 —
Business-type activities: _
Water $ 211,929
Sewer 97,456
Storm Sewer 182,928
Refuse 44,812 —
Pavilion/Ice arena 76,390
Housing and Redevelopment Authority 140,405
Total depreciation expense–business-type activities
Construction commitments
The City has active construction projects as of December 31, 2005. The projects include the completion of a new —
public works storage facility, a new fire station, remodeling the police department, parking lot and street
improvements. The City's commitment with contractors related to these projects is $64,537.
6. INTERFUND RECEIVABLES AND PAYABLES
The following funds had amounts receivable from other funds, and the respective funds had equal amounts payable to
other funds at December 31,2005:
Due from other funds —
Non-major
General governmental Total
Due to other funds:
Tax Increment 1.2 1,696,765 1,696,765
Non-major governmental 530,928 696,199 1,227,127
Non-major business-type 307,673 307,673 —
Total due to other funds 838,601 2,392,964 3,231,565
Advances from other funds
Internal
Service
Due to other funds:
Non-major business-type 626,656 _
Total due to other funds 626,656
The interfund receivables and payables allow the City to borrow the resources of one fund to facilitate a project or —
operations of another fund.
56
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31,2005:
Transfers in
Non-major Non-major Internal
governmental business-type Service Total
Transfers out:
General $ 400,000 $ 37,492 $ 100,000 $ 537,492
Permanent Improvement Revolving 210,219 - - 210,219
Water 45,000 - - 45,000
Sewer 50,000 - - 50,000
Storm Sewer 25,000 - - 25,000
Non-major governmental 870,775 - - 870,775
Non-major business-type 25,000 - - 25,000
Total transfers out $ 1,625,994 $ 37,492 $ 100,000 $ 1,763,486
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
Non-routine transfers include the following:
1) Annual transfers from water, sewer and storm sewer for lease payments on new public works facility.
_ 2) A transfer from the General Fund to the 2002 HRA Leased Revenue Bond fund, a non-major governmental
fund, to supplement funding for the first year bond payment. This transfer totaled $400,000 and is a one-
time transfer from property tax receipts.
3) A transfer from the General fund to the Skate Park fund to support operations of this fund. The transfer in
2005 is $37,492.
4) An annual transfer from the General fund to the Equipment Replacement Internal Service fund to support
replacement of equipment needs. The transfer in 2005 is$100,000.
5) An annual transfer, within non-major governmental funds, from the Economic Development and Cable TV
funds to the Art Center Fund totaling$147,920 to pay the original debt for building the facility.
8. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are
issued as 20-year serial bonds. General obligation bonds currently outstanding are as follows:
purpose Interest Rates Original Amount Current Amount
Governmental activities 2.00-8.0% $12,415,000 $9,950,000
Governmental activities—refunding 2.75-8.1% 7,578,543 4,246,284
57
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
Annual debt service requirements to maturity for general obligation bonds are as follows: —
Year Ending Governmental Activities
December 31 Principal Interest
2006 4,041,284 685,902 —
2007 755,000 515,673
2008 810,000 481,283
2009 840,000 444,046 —
2010 760,000 407,978
2011-2015 3,440,000 1,478,595
2016-2020 2,450,000 686,268 —
2021-2023 1,100,000 61,978
Total $4,761,723
The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City, —
and repayment monies are generated by the collection of special assessments and general levies. The bonds have a
stated rate of interest from 1.65% - 4.8% and are payable over the next ten years. The bonds originally issued at
$2,630,000 have a current balance of$1,675,000.
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2006 $ 305,000 $ 56,927
2007 315,000 46,378
2008 320,000 34,854
2009 200,000 24,865
2010 210,000 16,534 —
2011-2013 325,000 18,236
Total 1.675.000 1 7 7 4
Revenue bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to —
pay debt service. Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Original Amount Current Amount —
Storm sewer construction&replacement 2.0– 5.0% $2,810,000 $2,260,000
Water tower painting,meter system replacement 4.5– 5.5% 2,060,000 1,055,000
Storm sewer –refunding 2.75-3.65% 1,610,000 1,515,000 —
58
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2005
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2006 $ 450,000 $ 198,902
2007 475,000 181,304
— 2008 495,000 162,202
2009 505,000 141,851
2010 530,000 120,976
_ 2011-2015 1,760,000 342,980
2016-2020 360,000 87,054
2021-2023 255,000 15,989
Total $4,830,000 $ 1,251.258
Public Facility Lease Revenue Bonds
The Housing and Redevelopment Authority in and for the City of Hopkins, a blended component unit of the City,has
issued public facility lease revenue bonds for the construction of public works facility, a fire station, and police
_ station improvements. The aggregate amount of bonds issued totals $13,810,000. The Housing and Redevelopment
Authority has entered into ground leases with the City for the lease of the facilities to the City. The leases will remain
in effect until all principal and interest on the bonds have been paid. So long as the leases are in effect, the City will
make semiannual lease payments on each February 1 and August 1, in amounts sufficient to pay all principal and
interest on the bonds due on such payment date. The bonds are special obligations of the Housing and
Redevelopment Authority. The bonds do not constitute a general obligation of the Housing and Redevelopment
Authority or the City. It is the intent of the City to levy ad valorem taxes an amount sufficient to make rental
payments required under the leases. In the event the annual appropriation is not made, the bond trustees are entitled
to repossession and the right to re-lease the buildings and land. Public facility lease revenue bonds currently
outstanding are as follows:
— purpose Interest Rates Original Amount Current Amount
Public Works and Fire Station 3.0– 5.0% $10,760,000 $10,370,000
Police Station improvements 2.0– 4.35% 3,050,000 2,920,000
Annual debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2006 $ 520,000 $ 566,519
_ 2007 535,000 551,969
2008 545,000 536,318
2009 565,000 518,829
2010 580,000 499,285
2011-2015 3,270,000 2,124,164
2016-2020 4,100,000 1,273,076
2021-2024 3,175,000 252,425
Total $13,290,000 $ 6,322,585
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market value. At December
_ 31, 2005, the debt limit for the City is $29,036,202. Of the total debt, $12,769,666 of general obligation and revenue
bonds is applicable to the limit. The legal debt margin is $16,266,536.
- 59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
Changes in long-term liabilities
Long-term liability activity for the year ended December 31,2005,was as follows:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental Activities: _
Bonds payable:
G.O. tax increment bonds $ 11,307,436 $ 3,385,000 $ 1,326,152 $ 13,366,284 $ 3,886,284
General obligation bonds 985,000 - 155,000 830,000 155,000 _
Total general obligation bonds 12,292,436 3,385,000 1,481,152 14,196,284 4,041,284
Special assessment bonds 1,980,000 - 305,000 1,675,000 305,000
Public facility lease bonds 13,810,000 - 520,000 13,290,000 520,000
Total bonds payable 28,082,436 3,385,000 2,306,152 29,161,284 4,866,284
Compensated absences 655,455 482,831 423,758 714,528 714,528
Governmental activity
long-term liabilities $ 28,737,891 $ 3,867,831 $ 2,729,910 $ 29,875,812 $ 5,580,812
Business-type activities:
Bonds payable:
Revenue bonds $ 5,270,000 $ - $ 440,000 $ 4,830,000 $ 450,000
Compensated absences 126,402 68,471 71,525 123,348 123,348
Business-type activity
long-term liabilities $ 5,396,402 $ 68,471 $ 511,525 $ 4,953,348 $ 573,348
For the governmental activities compensated absences are generally liquidated by the general and special revenue funds.
9. PENSION PLAN OBLIGATIONS
1. Defined Benefit Pension Plans - Statewide
A. Plan Description
All full-time and certain part-time employees of the City of Hopkins are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the
Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF), which are
cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance
with Minnesota Statutes,Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered
by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan.
All police officers, fire fighters and peace officers that qualify for membership by statute are covered by PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death
of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The
defined retirement benefits are based on a member's highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service.
60
^
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
^
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring
member receives the higher of a step-rate benefit accrual formula(Method 1) or a level accrual formula(Method
2). Under Method 1,the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of
the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated
Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year.
Under Method 2,the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent
for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0
percent for each year of service. For all PEPFF members and PERF members hired prior to Julyl, 1989 whose
annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal
retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989.
Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members
hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early
retirement.
There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime
annuity that ceases upon the death of the retiree--no survivor annuity is payable. There are also various types of
joint and survivor annuity options available which will be payable over joint lives. Members may also leave their
contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement
.. age. Refunds of contributions are available at any time to members who leave public service, but before
retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active
plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are
bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required supplementary
information for PERF and PEPFF. That report may be obtained on the web at mnpera.org,by writing to PERA,
60 Empire Drive#200, St. Paul,Minnesota, 55103-2088 or by calling(651)296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans equal
to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required
to contribute 9.1% and 5.1%, respectively, of their annual covered salary. PEPFF members are required to
contribute 6.20% of their annual covered salary. The City of Hopkins is required to contribute the following
percentages of annual covered payroll: 11.78%for Basic Plan PERF members, 5.53%for Coordinated Plan PERF
members and 9.3% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for
the years ending December 31, 2005, 2004, and 2003 were $220,860, $213,189and $233,325, respectively. The
City's contributions to the Public Employees Police &Fire Fund for the years ending December 31, 2005, 2004,
and 2003 were $169,159, $161,777 and $154,824, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
2. Hopkins Fire Relief Association(HFRA)
Plan Description
The City contributes to the Hopkins Fire Relief Association(Association); a single employer defined benefit plan.
The Association administers the plan and issues separate financial statements that can be obtained by contacting
the Association.
.. 61
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005 —
Volunteer firefighters of the City are members of the Association. The plan provides for permanent and short
term disability benefits, death benefits and pensions with a set value for the annual withdrawal amount. Full
vesting in the plan requires a member to have served for at least 5 years, to have reached the age of 50 years and —
to have been a member of the Association for at least 20 years. These benefit provisions and all other
requirements are consistent with enabling statutes.
Funding Policy and Annual Pension Information
The governing board of the Association requests changes in benefit levels and contribution requirements that must —
be approved by the City Council. The funding policy provides that contributions from the City and from the State
of Minnesota are in amounts sufficient to accumulate assets to pay benefits when due. The City passes through
state aids allocated to the plan, in accordance with state statutes. The annual pension information is as follows:
2005 Contributions: City $ 32,166
State $100,841
Actuarial valuation date: 12/31/04 —
Actuarial cost method: Entry age normal actuarial cost method
Assumed rate of return: 5%
Actuarial valuation period Open —
Amortization method Level dollar–open
Amortization period Ten years
Inflation rate None
Projected salary increases Not applicable —
Post retirement benefit increases $200 per year of service
Annual Pension Benefit Cost for Past Three Years (the most current available)
Annual Pension %of Annual Pension Net Pension Obligation _
Year Ended Cost(APC) Cost Contributed At Year Ended
12/31/04 $ 31,535 100% $0
12/31/03 $ 30,766 100% $0
12/31/02 $ 29,870 100% $0 —
Schedule of Funding Progress Required Supplemental Information)(unaudited) (the most current available) —
Actuarial Actuarial Accrued Excess(Under)
Actuarial Value of Liability(AAL) Of Assets Funded
Valuation Assets Entry Age Over AAL Ratio —
Date (a) (b) (a-b) (a/b)
12/31/04 $3,198,102 $2,692,598 $505,504 119%
12/31/03 $2,796,099 $2,780,591 $ 15,508 101%
12/31/02 $2,423,167 $2,640,695 $(217,528) 92%
The estimated accrued liability of $2,692,598 at December 31, 2004 was calculated using the State of Minnesota
Schedule I form for lump sum pension plans. This results in positive net assets available for benefits of$505,504. as of —
December 31, 2004. The Hopkins Fire Department is a volunteer organization and therefore does not have payroll to
disclose.
62
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005
10. REHABILITATION LOANS RECEIVABLE
The City makes rehabilitation loans to residential and commercial entities within the City. Residential loans are made
for 20 year periods at 3% interest. A mortgage against the property improved is required and City staff is responsible
to follow-up any delinquent accounts. Loan repayments are made to Matrix Financial Services, a loan service bureau,
which charges a fee of$5.95 per month per loan. Principal and interest are forwarded to the City monthly with loan
collection and loan status reports. Rehabilitation loan activity is a function of the Economic Development Fund, the
Hennepin County CDBG and the Housing Rehab Funds. Loans become due in full upon sale of property.
Rehabilitation loans receivable amounted to$319,846 at December 31,2005.
11. CLAIMS AND LITIGATION
The City had the usual and customary types of miscellaneous claims pending at year-end,which are of a minor nature
and usually all covered by insurance carried for that purpose. The City carries a $1,000,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City participates in a public entity risk pool to mitigate
its exposure to these risks. Workers compensation and property and liability coverage are provided through a pooled
self-insurance plan with other cities. Settled claims have not exceeded insurance coverage in any of the past three
fiscal years. The City pays an annual premium based on prior claims history for its workers compensation coverage.
The public entity risk pool is responsible for the payment of all associated claims. The City has a $20,000 deductible
per occurrence with a maximum per year out of pocket of$40,000, for its property and liability coverage. The public
entity risk pool is responsible for all losses in excess of$20,000 per occurrence and all losses occurring after the
$40,000 maximum City out of pocket costs.
13. NEW ACCOUNTING PRONOUNCEMENTS
In March 2003, the Governmental Accounting Standards Board (GASB) issued Statement No. 40, Deposit and
Investment Risk Disclosures — an amendment of GASB Statement No. 3. The City implemented Statement No. 40
during the year ended December 31, 2005. As a result of implementing this statement, the city revised the deposit
and investment risk disclosures in note 4 to include disclosure of interest rate risk, credit risk, and concentration of
credit risk.
In July 2004, the GASB issued Statement No. 45 Accounting and Financial Reporting by Employers for
Postemployment Benefit Plans other than Pension Plans. This Statement, which the City will be required to adopt in
the year ended December 31, 2008, provides that postemployment benefits offered to employers are to be measured
and recognized on the full accrual basis of accounting over a period that approximates an employee's years of service.
The City has not yet assessed the impact of the adoption of GASB No.45 on its financial statements.
Also in 2004, the GASB issued the following three statements: 1) Statement No. 44 Economic Condition Reporting:
The Statistical Section —an amendment of NCGA Statement 1, which establishes and modifies requirement related to
supplementary information presented by the City in the statistical section that accompanies the basic financial
statements; 2) Statement No. 46, Net Assets Restricted by Legislation, an amendment of GASB Statement No. 34,
which clarifies the meaning of the phrase legally enforceable as it applies to restrictions imposed on net asset use by
enabling legislation and requires that governments disclose the portion of total net assets that are restricted by
enabling legislation; and 3) Statement No. 47, Accounting for Termination Benefits, which requires employers to
recognize a liability and expense for voluntary and involuntary termination benefits (for example, early retirement
incentive or severance benefits). The standard also requires that employers disclose a description of the termination
63
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2005 —
benefit arrangement, the cost of termination benefits, and significant methods and assumptions used to determine
termination benefit liabilities. These three statements are required to be implemented with the year ended December _
31,2006. The City has not yet determined the impact of GASB No.44,46 and 47 on its financial statements.
64
CITY OF HOPKINS, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS STATEMENTS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or
other earmarked revenue sources. Expenditures are restricted by law or administrative
regulation for specified purposes.
State Chemical Assessment Fund — This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Economic Development Fund - This fund was established to fund development
opportunities. Sources of funds are derived from the administration of loans and rental
property acquired with bonds and grants.
Real Estate Purchases and Sales Fund - This fund records the acquisition and disposition of
various properties with the proceeds used to improve city buildings.
Hennepin County CDBG - This fund accounts for receipt for Community Development
Block Grant funds and the issuance of loans and grants for housing rehabilitation.
Tax Increment Funds - These funds were established to record the use of tax increment
receipts and bond proceeds as applied in various Tax Increment Districts.
Paratransit Fund - This fund was established to account for the receipt of grants and rider
fees and expenditures for transit service.
Housing Rehab Fund - This fund was established to account for funds received under the
Community Development Block Grant funds and Section 8.
Parking Fund - This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
Section 8 Housing Fund — This fund administers the HUD Section 8 Rental Assistance
Program.
Cable TV Fund - This fund records the City's share of a five-city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission.
Depot Coffee House Fund — This fund accounts for the operations of the coffee house
business and the teen center operations that are supported through grant funds.
Art Center Fund —This fund accounts for the operations of the Hopkins Art Center which is
supported through leases, state aids, contributions, sales and intergovernmental transfers.
_ 65
DEBT SERVICE FUNDS
Debt Service Funds are established to finance and account for the payment of —
interest and principal on all general obligation debt other than debt issued for and
serviced by a governmental enterprise. Provisions are made in the City's general
property tax levy for money sufficient to meet the general obligation debt. —
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature. (Special revenue and enterprise —
fund resources are not included in this category.) These funds evolve from the
needs for special accounting for bond proceeds, grants and contributions for the
acquisition of capital assets. _
Park Improvements Fund - This fund was established to record construction and
improvement costs for park facilities. —
Municipal State Aid For Highway Construction Fund - This fund is used to account
for the City's allocation of the state collected highway user tax. The allocation is —
based on population and need for construction of designated state aid streets in the
City.
Capital Improvement Fund - This fund accounts for funds set aside for the
construction and improvement of City facility and infrastructure.
66
CITY OF HOPKINS,MINNESOTA
1 of 9
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Special Revenue Funds
Tax
_ State Real Estate Hennepin Increment
Chemical Economic Purchases County Art District
Assessment Development &Sales CDBG Center Downtown
ASSETS
Cash and investments $ $ 816,178 $ 77,434 $ $ $ 389,889
Taxes receivable 166
Special Assessments receivable - -
Accounts receivable 9,370 - 34,972
Rehabilitation loans receivable 235,220 - 84,626 -
Accrued interest receivable 5,504 484 - 2,482
Due from other funds - 1,801,637 - 591,327
Due from other governments 9,611 48,319
Restricted cash and investments -
Total Assets $ 9,611 $ 2,868,075 $ 77,918 $ 132,945 $ 34,972 $ 983,698
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 9,507 $ 592 $ $ $ 10,963 $
Salaries payable 2,254 6,187
Accrued interest payable 19 1,880
Due to other funds 2,232 2,964 820,134
Due to other governments - -
Unearned revenue - 202,640 83,830
Total Liabilities 11,739 205,486 2,983 922,994
Fund balances:
Reserved for:
Restricted cash and investments - -
Reserved for Rehab loans receivable - 235,220 84,626 -
Reserved for Tax Increment Districts - - - 392,371
Reserved for advance to other funds - 1,801,637 591,327
Reserved for debt service -
Unreserved:
Designated for public safety (2,128) -
Designated for economic development - 45,336
Designated for construction projects - -
Undesignated - 625,732 77,918 (888,022)
Total Fund Balances (2,128) 2,662,589 77,918 129,962 (888,022) 983,698
Total Liabilities and Fund Balance $ 9,611 $ 2,868,075 $ 77,918 $ 132,945 $ 34,972 $ 983,698
67
CITY OF HOPKINS,MINNESOTA _
2 of 9
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Special Revenue Funds
Tax
Tax Tax Tax Increment Tax
Increment Increment Increment District Increment
District District District Oaks of District
R.L.Johnson Sonoma Diamond Labs Mainstreet Business District
ASSETS
Cash and investments $ 100,966 $ 14,540 $ 36,702 $ 230,373 $ 54,413
Taxes receivable 14,426 3,298
Special Assessments receivable -
Accounts receivable 549 -
Rehabilitation loans receivable - -
Accrued interest receivable 651 95 - 1,466 346
Due from other funds -
Due from other governments - -
Restricted cash and investments - -
Total Assets $ 116,043 $ 15,184 $ 36,702 $ 235,137 $ 54,759
LIABILITIES AND FUND BALANCE _
Liabilities:
Accounts payable $ 170,588 $ $ 36,702 $ $ 37,447
Salaries payable _
Accrued interest payable
Due to other funds 396,199
Due to other governments -
Unearned revenue -
Total Liabilities 170,588 396,199 36,702 - 37,447
Fund balances:
Reserved for:
Restricted cash and investments
Reserved for Rehab loans receivable _
Reserved for Tax Increment Districts 235,137 17,312
Reserved for advance to other funds -
Reserved for debt service - _
Unreserved:
Designated for public safety -
Designated for economic development -
Designated for construction projects -
Undesignated (54,545) (381,015) - -
Total Fund Balances (54,545) (381,015) 235,137 17,312
Total Liabilities and Fund Balance $ 116,043 $ 15,184 $ 36,702 $ 235,137 $ 54,759
68
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Special Revenue Funds
Tax
Increment
District Block 64 Housing
Supervalu Development Para-Transit Rehab Parking
ASSETS
Cash and investments $ 2,589,336 $ 964 $ - $ 844,424 $ 273,552
Taxes receivable
Special Assessments receivable '
Accounts receivable "
Rehabilitation loans receivable -
Accruedinterestreceivable 16,496 7 - 5,704 1,746
Due from other funds
Due from other governments 16,924 - 1,555
Restricted cash and investments - 49,000 -
Total Assets $ 2,605,832 $ 971 $ 16,924 $ 899,128 $ 276,853
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 1,488 $ 644 $ 7,632 $ 1,701 $ 1,186
Salaries payable 275 980 1,244
Accrued interest payable
Due to other funds 5,598 - -
Due to other governments - 250
Unearned revenue - 29,787
Total Liabilities 1,488 644 13,505 2,931 32,217
Fund balances:
_ Reserved for:
Restricted cash and investments 49,000
Reserved for Rehab loans receivable - - "
Reserved for Tax Increment Districts 2,604,344
Reserved for advance to other funds
Reserved for debt service
Unreserved:
Designated for public safety -
Designated for economic development 85,000
Designated for construction projects - "
Undesignated - 327 3,419 762,197 244,636
Total Fund Balances 2,604,344 327 3,419 896,197 244,636
Total Liabilities and Fund Balance $ 2,605,832 $ 971 $ 16,924 $ 899,128 $ 276,853
69
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Special Revenue Funds
Depot
Section 8 Coffee
Housing Cable TV House Total _
ASSETS
Cash and investments $ 106,029 $ 290,330 $ 38,839 $ 5,863,969
Taxes receivable - 17,890
Special Assessments receivable - -
Accounts receivable - 38,365 2,120 85,376
Rehabilitation loans receivable - 319,846
Accrued interest receivable 676 2,399 - 38,056
Due from other funds - 2,392,964
Due from other governments - 12,500 88,909
Restricted cash and investments - - 49,000
Total Assets $ 106,705 $ 331,094 $ 53,459 $ 8,856,010
LIABILITIES AND FUND BALANCE _
Liabilities:
Accounts payable $ 213 $ 3,057 $ 7,473 $ 289,193
Salaries payable 1,428 157 - 12,525 -
Accrued interest payable 1,899
Due to other funds 1,227,127
Due to other governments 374 624
Unearned revenue 316,257 -
Total Liabilities 1,641 3,214 7,847 1,847,625
Fund balances:
Reserved for:
Restricted cash and investments - - 49,000
Reserved for Rehab loans receivable - - - 319,846
Reserved for Tax Increment Districts - - - 3,249,164
Reserved for advance to other funds - - - 2,392,964
Reserved for debt service - - - _
Unreserved:
Designated for public safety - -
Designated for economic development - - 130,336
Designated for construction projects - - - -
Undesignated 105,064 327,880 45,612 869,203
Total Fund Balances 105,064 327,880 45,612 7,008,385
Total Liabilities and Fund Balance $ 106,705 $ 331,094 $ 53,459 $ 8,856,010
70
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Debt Service Funds
Taxable
Redevelop. Redevelop. Taxable
_ Refunding Refunding C Housing Redevelop.D Redevelop.
Bonds of Bonds of Bonds of Bonds of Bonds of
1992 1993 1995 1996 1996
ASSETS
Cash and investments $ 103,255 $ $ 107,644 $ 94,466 $ 20,952
Taxes receivable
Special Assessments receivable 597,214
Accounts receivable -
Rehabilitation loans receivable
Accrued interest receivable 664 - 679 594 132
Due from other funds
Due from other governments
Restricted cash and investments -
Total Assets $ 103,919 $ $ 705,537 $ 95,060 $ 21,084
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable S $ $ 75 $ 76 $ 76
Salaries payable -
Accrued interest payable
Due to other funds -
Due to other governments '
Unearned revenue 595,643
Total Liabilities 595,718 76 76
Fund balances:
_ Reserved for:
Restricted cash and investments
Reserved for Rehab loans receivable
Reserved for Tax Increment Districts '
Reserved for advance to other funds - -
Reserved for debt service 103,919 - 109,819 94,984 - 21,008
Unreserved:
Designated for public safety
Designated for economic development - - -
Designated for construction projects
Undesignated - -
Total Fund Balances 103,919 - 109,819 94,984 21,008
Total Liabilities and Fund Balance $ 103,919 $ - $ 705,537 $ 95,060 $ 21,084
71
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS _
December 31,2005
Debt Service Funds
Improvement Park and
Revolving Recreational
Tax Bonds of Refunding D
Increment Improvement 1992, Bonds of Improvement
Redevelop. Revolving Refunding 1993,Refunding Revolving A
Bonds of Bonds of Bonds of Bonds of Bonds of
1997 1999 2001 2001 2002
ASSETS
Cash and investment $ 405,353 $ 125,849 $ 162,435 $ 178,823 $ 114,754
Taxes receivable - 398 904 3,088 846
Special Assessments receivable - - -
Account receivable -
Rehabilitation loans receivable - - -
Accrued interest receivable 2,551 789 1,011 1,084 711 -'
Due from other funds -
Due from other government - -
Restricted cash and investments - -
Total Asset $ 407,904 $ 127,036 $ 164,350 $ 182,995 $ 116,311
LIABILITIES AND FUND BALANCE _
Liabilities:
Account payable $ 76 $ $ $ $
Salaries payable
Accrued interest payable
Due to other funds
Due to other government - -
Unearned revenue 279 620 1,917 576
Total Liabilities 76 279 620 1,917 576
Fund balances:
Reserved for:
Restricted cash and investment
Reserved for Rehab loans receivable - -
Reserved for Tax Increment District
Reserved for advance to other funds - - -
Reserved for debt service 407,828 126,757 163,730 181,078 115,735
Unreserved:
Designated for public safety
Designated for economic development
Designated for construction projects
Undesignated - -
Total Fund Balances 407,828 126,757 163,730 181,078 115,735
Total Liabilities and Fund Balance $ 407,904 $ 127,036 $ 164,350 $ 182,995 $ 116,311
72
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Debt Service Funds
_ Tax Tax
Increment Increment
Tax HRA Lease HRA Lease Bonds of 1996C Bonds of 1997
Increment B Revemue Revemue Refunding Refunding
Bonds of Bonds of Bonds of Bonds of Bonds of
2002 2002 2003 2005A 2005A
ASSETS
Cash and investments $ 157,205 $ 645,676 $ 110,498 $ 499,471 $ 1,112,684
Taxes receivable 3,931 3,084
Special Assessments receivable
Accounts receivable
Rehabilitation loans receivable
Accrued interest receivable 989 4,012 641 3,134 6,981
Due from other funds -
Due from other governments -
Restricted cash and investments - 32
Total Assets $ 158,194 $ 653,651 $ 114,223 $ 502,605 $ 1,119,665
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Salaries payable
Accrued interest payable
Due to other funds "
Due to other governments
Unearned revenue 2,833 2,007
Total Liabilities 2,833 2,007
Fund balances:
Reserved for:
Restricted cash and investments
Reserved for Rehab loans receivable -
Reserved for Tax Increment Districts
Reserved for advance to other funds - -
Reserved for debt service 158,194 650,818 112,216 502,605 1,119,665
Unreserved:
— Designated for public safety
Designated for economic development -
Designated for construction projects -
Undesignated - -
Total Fund Balances 158,194 650,818 112,216 502,605 1,119,665
Total Liabilities and Fund Balance $ 158,194 $ 653,651 $ 114,223 $ 502,605 $ 1,119,665
73
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Debt Service Funds
Taxable Tax Taxable Tax
Increment Increment
Bonds of 1997 Bonds of 1996D
Refunding Refunding
Bonds of Bonds of
2005B 2005B Total
ASSETS
Cash and investments $ 1,302,355 $ 429,186 $ 5,570,606
Taxes receivable - 12,251
Special Assessments receivable 597,214
Accounts receivable -
Rehabilitation loans receivable
Accrued interest receivable 8,171 2,693 34,836
Due from other funds - -
Due from other governments - - -
Restricted cash and investments - - 32
Total Assets $ 1,310,526 $ 431,879 $ 6,214,939
LIABILITIES AND FUND BALANCE _
Liabilities:
Accounts payable $ - $ - $ 303
Salaries payable -
Accrued interest payable -
Due to other funds -
Due to other governments -
Uneamed revenue - 603,875
Total Liabilities - - 604,178
Fund balances:
Reserved for:
Restricted cash and investments - -
Reserved for Rehab loans receivable - -
Reserved for Tax Increment Districts - - -
Reserved for advance to other funds - -
Reserved for debt service 1,310,526 431,879 5,610,761
Unreserved:
Designated for public safety - - -
Designated for economic development -
Designated for construction projects -
Undesignated - -
Total Fund Balances 1,310,526 431,879 5,610,761
Total Liabilities and Fund Balance $ 1,310,526 $ 431,879 $ 6,214,939
74
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2005
Capital Project Funds
Total
Municipal Capital Non-major
Park State Aid Improvement Govemmental
Improvements Construction Fund Total Funds
ASSETS
Cash and investments $ 95,787 $ 1,941,390 $ 707,484 $ 2,744,661 $ 14,179,236
Taxes receivable 331 331 30,472
Special Assessments receivable 597,214
Accounts receivable 1,043 1,043 86,419
Rehabilitation loans receivable - - 319,846
Accrued interest receivable 610 12,406 13,016 85,908
Due from other funds - - 2,392,964
Due from other governments 452,806 452,806 541,715
Restricted cash and investments 49,032
Total Assets $ 96,397 $ 2,407,645 $ 707,815 $ 3,211,857 $ 18,282,806
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ $ 10,446 $ 66,719 $ 77,165 $ 366,661
Salaries payable - - - 12,525
Accrued interest payable 9,642 9,642 11,541
Due to other funds 1,227,127
Due to other governments - - 624
Unearned revenue - 391,536 217 391,753 1,311,885
Total Liabilities 401,982 76,578 478,560 2,930,363
Fund balances:
_ Reserved for:
Restricted cash and investments 49,000
Reserved for Rehab loans receivable 319,846
Reserved for Tax Increment Districts 3,249,164
Reserved for advance to other funds 2,392,964
Reserved for debt service - 5,610,761
Unreserved:
Designated for public safety (2,128)
Designated for economic development - - - 130,336
Designated for construction projects 2,005,663 631,237 2,636,900 2,636,900
Undesignated 96,397 - - 96,397 965,600
Total Fund Balances 96,397 2,005,663 631,237 2,733,297 15,352,443
Total Liabilities and Fund Balance $ 96,397 $ 2,407,645 $ 707,815 $ 3,211,857 $ 18,282,806
75
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Special Revenue Funds
State Real Estate Hennepin
Chemical Economic Purchases County Art
Assessment Development &Sales CDBG Center
Revenues
Property tax $ - $ 9,912 $ - $ - $ -
Tax increment - - - - -
Special assessments - - - -
Intergovernmental revenue 104,114 - - 7,500 50,000
Fees,licenses and permits - - - - -
Charges for services - 54 3,700 - 346,497
Fines - - - -
Investment earnings - 53,704 2,505 -
Other - 23 - - -
Total Revenues 104,114 63,693 6,205 7,500 396,497
Expenditures
Current:
General government - - - -
Public safety 76,371 - - -
Health and welfare - - - - -
Highways and streets - - - -
Urban redevelopment and housing - 167,875 - 16,281 -
Recreation - - - - 410,757
Capital outlay 40,027 - - - -
Debt Service:
Principal retirement - - - "
Interest and fiscal fees - - - -
Bond issuance costs - - '
Total Expenditures 116,398 167,875 - 16,281 410,757
Excess(deficiency)of revenues over
(under)expenditures (12,284) (104,182) 6,205 (8,781) (14,260)
Other Financing Sources(Uses):
Transfers in - - 147,920
Transfers out - (62,855) - - -
Refunding bonds issued -
Discount on refunding debt - - -
Total Other Financing Sources(Uses) - (62,855) - 147,920
Net change in fund balances (12,284) (167,037) 6,205 (8,781) 133,660
Fund Balance(Deficit)-January 1 10,156 2,829,626 71,713 138,743 (1,021,682)
Fund Balance(Deficit)-December 31 $ (2,128) $ 2,662,589 $ 77,918 $ 129,962 $ (888,022)
76
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Special Revenue Funds
_ Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment
District District District District District
_ Downtown R.L.Johnson Sonoma Thermotech Diamond Labs
Revenues
Property tax -
Tax increment - 371,125 18,544 -
Special assessments
Intergovernmental revenue
Fees,licenses and permits
Charges for services
Fines - -
Investment earnings 20,138 2,061 370 294
Other 12,854 - 549 - -
Total Revenues 32,992 373,186 19,463 - 294
Expenditures
Current:
General government - - -
Public safety - -
Health and welfare - - -
Highways and streets - - -
Urban redevelopment and housing 3,601 191,642 407 813 37,064
Recreation - - -
Capital outlay - - -
Debt Service:
Principal retirement - - - -
Interest and fiscal fees - - - -
Bond issuance costs - - - -
Total Expenditures 3,601 191,642 407 813 37,064
Excess(deficiency)of revenues over
(under)expenditures 29,391 181,544 19,056 (813) (36,770)
_ Other Financing Sources(Uses):
Transfers in - - - 1,855 -
Transfers out - (400,000) - - -
Refunding bonds issued -
Discount on refunding debt - - -
Total Other Financing Sources(Uses) - (400,000) - 1,855 -
Net change in fund balances 29,391 (218,456) 19,056 1,042 (36,770)
Fund Balance(Deficit)-January 1 954,307 163,911 (400,071) (1,042) 36,770
Fund Balance(Deficit)-December 31 $ 983,698 $ (54,545) $ (381,015) $ - $
77
CITY OF HOPKINS,MINNESOTA -
3 of 9
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES _
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Special Revenue Funds -
Tax -
Increment Tax Tax
District Increment Increment
Oaks of District District Block 64 -
Mainstreet Business District SuperValu Development Para-Transit
Revenues
Property tax $ - $ $ - $ - S -
Tax increment 152,191 83,516 297,507 - -
Special assessments - _ - -
Intergovemmental revenue 11,194 - - - 103,114
Fees,licenses and permits - - - - -
Charges for services - - - - 13,560
Fines - -
Investment earnings 3,723 805 43,837 187 - -
Other - - - 147,500 -
Total Revenues 167,108 84,321 341,344 147,687 116,674
Expenditures
Current:
General government - '
Public safety _ 114,576
Health and welfare - "
Highways and streets - -
Urban redevelopment and housing 1,197 126,233 24,455 145,923 -
Recreation _ -
Capital outlay -
Debt Service:
Principal retirement - _ -
Interest and fiscal fees - -
Bond issuance costs - -
Total Expenditures 1,197 126,233 24,455 145,923 114,576 -
Excess(deficiency)of revenues over
(under)expenditures 165,911 (41,912) 316,889 1,764 2,098
Other Financing Sources(Uses):
Transfers in '
Transfers out (133,000) - (188,000) -
Refunding bonds issued - -
Discount on refunding debt
Total Other Financing Sources(Uses) (133,000) - (188,000)
Net change in fund balances 32,911 (41,912) 128,889 1,764 2,098
Fund Balance(Deficit)-January 1 202,226 59,224 2,475,455 (1,437) 1,321 -
Fund Balance(Deficit)-December 31 $ 235,137 $ 17,312 $ 2,604,344 $ 327 $ 3,419
78
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Special Revenue Funds
Depot
Housing Section 8 Coffee
Rehab Parking Housing Cable TV House Total
Revenues
Property tax $ $ - $ - S - $ - $ 9,912
Tax increment - - - - - 922,883
Special assessments
Intergovernmental revenue - 112,626 - 56,000 444,548
Fees,licenses and permits - - - 151,516 - 151,516
Charges for services 54,262 - 80 160,643 578,796
Fines 28,669 - - - 28,669
Investment earnings 16,224 5,005 1,987 6,018 - 156,858
Other 113 - - 16,953 177,992
Total Revenues 16,337 87,936 114,613 157,614 233,596 2,471,174
Expenditures
Current:
General government - - - 64,379 - 64,379
Public safety - 71,552 - - - 147,923
Health and welfare - - - 114,576
Highways and streets - 39,263 - - - 39,263
Urban redevelopment and housing 80,387 - 114,584 - - 910,462
Recreation - - - - 213,802 624,559
Capital outlay - - - - 40,027
Debt Service:
Principal retirement - - -
Interest and fiscal fees - - -
�' Bond issuance costs - -
Total Expenditures 80,387 110,815 114,584 64,379 213,802 1,941,189
-� Excess(deficiency)of revenues over
(under)expenditures (64,050) (22,879) 29 93,235 19,794 529,985
Other Financing Sources(Uses):
^ Transfers in - - - - - 149,775
Transfers out - - - (86,920) - (870,775)
Refunding bonds issued - - -
Discount on refunding debt - -
Total Other Financing Sources(Uses) - - - (86,920) - (721,000)
Net change in fund balances (64,050) (22,879) 29 6,315 19,794 (191,015)
Fund Balance(Deficit)-January 1 960,247 267,515 105,035 321,565 25,818 7,199,400
Fund Balance(Deficit)-December 31 $ 896,197 $ 244.636 $ 105,064 $ 327,880 $ 45,612 $ 7,008,385
79
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Debt Service Funds
Taxable
Redevelop. Redevelop. Taxable
Refunding Refunding C Housing Redevelop.D Redevelop.
Bonds of Bonds of Bonds of Bonds of Bonds of
1992 1993 1995 1996 1996
Revenues
Property tax $ - $ - $ - $ - $ '
Tax increment - - - -
Special assessments - - 97,633 - -
Intergovernmental revenue - - - -
Fees,licenses and permits - - - - '
Charges for services - - - -
Fines - - -
Investment earnings 859 - 1,026 654 202
Other - -
Total Revenues 859 - 98,659 654 202
Expenditures
Current:
General government - 15,116 - - -
Public safety - - "
Health and welfare - - -
Highways and streets - - - -
Urban redevelopment and housing - - - -
Recreation - -
Capital outlay - "
Debt Service:
Principal retirement 96,152 695,000 55,000 65,000 -
Interest and fiscal fees 173,847 16,272 38,364 40,848 28,976
Bond issuance costs
Total Expenditures 269,999 726,388 93,364 105,848 28,976
Excess(deficiency)of revenues over
(under)expenditures (269,140) (726,388) 5,295 (105,194) (28,774)
Other Financing Sources(Uses):
- - - 106,000 27,000
Transfers in
Transfers out - -
Refunding bonds issued - "
Discount on refunding debt - - -
Total Other Financing Sources(Uses) - - - 106,000 27,000
Net change in fund balances (269,140) (726,388) 5,295 806 (1,774)
Fund Balance(Deficit)-January 1 373,059 726,388 104,524 94,178 22,782
Fund Balance(Deficit)-December 31 $ 103,919 $ - $ 109,819 $ 94,984 $ 21,008
80
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Debt Service Funds
Improvement Park and
Revolving Recreational
Tax Bonds of Refunding D
_ Increment Improvement 1992, Bonds of Improvement
Redevelop. Revolving Refunding 1993,Refunding Revolving A
Bonds of Bonds of Bonds of Bonds of Bonds of
1997 1999 2001 2001 2002
Revenues
Property tax $ - $ 25,708 $ 61,303 $ 191,054 $ 58,337
Tax increment -
Special assessments -
Intergovemmental revenue '
Fees,licenses and permits - -
Charges for services - -
Fines "
Investment earnings 3,556 1,193 1,354 1,121 848
Other - - 1,095 - -
Total Revenues 3,556 26,901 63,752 192,175 59,185
Expenditures
Current:
General government - - -
Public safety "
Health and welfare - -
Highways and streets '
Urban redevelopment and housing - -
Recreation '
Capital outlay "
Debt Service:
Principal retirement 145,000 80,000 140,000 155,000 85,000
_ Interest and fiscal fees 68,725 24,380 15,423 31,218 27,716
Bond issuance costs "
Total Expenditures 213,725 104,380 155,423 186,218 112,716
Excess(deficiency)of revenues over
(under)expenditures (210,169) (77,479) (91,671) 5,957 (53,531)
Other Financing Sources(Uses):
Transfers in 400,000 75,000 77,000 - 58,219
Transfers out "
Refunding bonds issued -
Discount on refunding debt - -
Total Other Financing Sources(Uses) 400,000 75,000 77,000 - 58,219
Net change in fund balances 189,831 (2,479) (14,671) 5,957 4,688
Fund Balance(Deficit)-January 1 217,997 129,236 178,401 175,121 111,047
Fund Balance(Deficit)-December 31 $ 407,828 $ 126,757 $ 163,730 $ 181,078 $ 115,735
81
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Debt Service Funds
Tax Tax
Increment Increment
Tax HRA Lease HRA Lease Bonds of 1996C Bonds of 1997
Increment B Revenue Revenue Refunding Refunding
Bonds of Bonds of Bonds of Bonds of Bonds of
2002 2002 2003 2005A 2005A
Revenues
Property tax $ - $ 235,212 $ 234,449 $ $
Tax increment - - -
Special assessments - - - - -
Intergovemmental revenue - - - -
Fees,licenses and permits - - - - -
Charges for services - - - - -
Fines - - - - -
Investment earnings 1,107 4,693 - 3,857 8,592
Other - - -
Total Revenues 1,107 239,905 234,449 3,857 8,592
Expenditures
Current:
General government - - 462 - -
Public safety - - - - -
Health and welfare - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - - - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement 85,000 390,000 130,000 - -
Interest and fiscal fees 99,229 477,387 104,356 - -
Bond issuance costs - - - 5,742 12,791
Total Expenditures 184,229 867,387 234,818 5,742 12,791
Excess(deficiency)of revenues over
(under)expenditures (183,122) (627,482) (369) (1,885) (4,199)
Other Financing Sources(Uses):
Transfers in 188,000 545,000 - -
Transfers out - - - -
Refunding bonds issued - - - 505,000 1,125,000
Discount on refunding debt - - - (510) (1,136)
Total Other Financing Sources(Uses) 188,000 545,000 - 504,490 1,123,864
Net change in fund balances 4,878 (82,482) (369) 502,605 1,119,665
Fund Balance(Deficit)-January 1 153,316 733,300 112,585 - -
Fund Balance(Deficit)-December 31 $ 158,194 $ 650,818 $ 112,216 $ 502,605 $ 1,119,665
82
CITY OF HOPKINS,MINNESOTA
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COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Debt Service Funds
Taxable Tax Taxable Tax
Increment Increment
_ Bonds of 1997 Bonds of 1996D
Refunding Refunding
Bonds of Bonds of
_ 2005B 2005B Total
Revenues
Property tax $ - $ - $ 806,063
Tax increment - -
Special assessments - - 97,633
Intergovernmental revenue - - -
Fees,licenses and permits - -
Charges for services - - -
Fines - -
Investment earnings 10,057 3,315 42,434
Other - - 1,095
Total Revenues 10,057 3,315 947,225
Expenditures
Current:
General government - - 15,578
Public safety - - -
Health and welfare - - -
Highways and streets - - -
Urban redevelopment and housing - - -
Recreation - - -
Capital outlay - - -
Debt Service:
Principal retirement - - 2,121,152
Interest and fiscal fees - - 1,146,741
Bond issuance costs 17,580 5,793 41,906
Total Expenditures 17,580 5,793 3,325,377
Excess(deficiency)of revenues over
(under)expenditures (7,523) (2,478) (2,378,152)
_ Other Financing Sources(Uses):
Transfers in - - 1,476,219
Transfers out - -
Refunding bonds issued 1,320,000 435,000 3,385,000
Discount on refunding debt (1,951) (643) (4,240)
Total Other Financing Sources(Uses) 1,318,049 434,357 4,856,979
Net change in fund balances 1,310,526 431,879 2,478,827
Fund Balance(Deficit)-January 1 - - 3,131,934
Fund Balance(Deficit)-December 31 $ 1,310,526 $ 431,879 $ 5,610,761
83
CITY OF HOPKINS,MINNESOTA -
9 of 9
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES _
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2005
Capital Project Funds
Total
Municipal Capital Non-major
Park State Aid Improvement Governmental -
Improvements Construction Fund Total Funds
Revenues
Property tax $ - $ - $ 24,717 $ 24,717 $ 840,692 -
Tax increment - - - - 922,883
Special assessments - - - - 97,633
Intergovernmental revenue - - - - 444,548
Fees,licenses and permits - - - - 151,516 -
Charges for services - - - - 578,796
Fines - - - - 28,669
Investment earnings 1,779 34,678 20,426 56,883 256,175 -
Other 58,871 - - 58,871 237,958
Total Revenues 60,650 34,678 45,143 140,471 3,558,870
Expenditures -
Current:
General government - - - - 79,957
Public safety - - - - 147,923 -
Health and welfare - - - - 114,576
Highways and streets - - - - 39,263
Urban redevelopment and housing - - - - 910,462
Recreation - - - 624,559 -
Capital outlay 50,142 402,470 940,638 1,393,250 1,433,277
Debt Service:
Principal retirement - - - - 2,121,152 -
Interest and fiscal fees - - - - 1,146,741
Bond issuance costs - - - - 41,906
Total Expenditures 50,142 402,470 940,638 1,393,250 6,659,816
Excess(deficiency)of revenues over
(under)expenditures 10,508 (367,792) (895,495) (1,252,779) (3,100,946)
Other Financing Sources(Uses):
Transfers in - - 1,625,994
Transfers out - - - (870,775)
Refunding bonds issued - - - 3,385,000
Discount on refunding debt - - - (4,240)
Total Other Financing Sources(Uses) - - - - 4,135,979
Net change in fund balances 10,508 (367,792) (895,495) (1,252,779) 1,035,033
Fund Balance(Deficit)-January 1 85,889 2,373,455 1,526,732 3,986,076 14,317,410 -
Fund Balance(Deficit)-December 31 $ 96,397 $ 2,005,663 $ 631,237 $ 2,733,297 $ 15,352,443
84
CITY OF HOPKINS,MINNESOTA
STATE CHEMICAL ASSESSMENT TEAM FUND SPECIAL REVENUE FUND
-. SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Intergovernmental revenue:
Federal grant $ 45,000 $ 45,000 $ 43,296 $ (1,704)
State grant - 45,000 60,818 15,818
45,000 90,000 104,114 14,114
Expenditures:
Salaries and employee benefits 24,800 24,800 29,671 (4,871)
Materials,supplies and services 17,200 17,200 46,700 (29,500)
Capital outlay 3,000 48,000 40,027 7,973
Total Expenditures 45,000 90,000 116,398 (26,398)
Net change in fund balance - - (12,284) (12,284)
Fund Balance-January 1 10,156 10,156 10,156 -
Fund Balance-December 31 $ 10,156 $ 10,156 $ (2,128) $ (12,284)
85
CITY OF HOPKINS,MINNESOTA
ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
General property taxes $ 68,900 $ 9,912 $ (58,988)
Charges for services - 54 54
Investment earnings 35,000 53,704 18,704
Other 12,000 23 (11,977)
Total Revenues 115,900 63,693 (52,207)
Expenditures: —
Salaries and employee benefits 131,985 139,217 (7,232)
Materials,supplies and services 91,685 66,158 25,527
Total 223,670 205,375 18,295 —
Less expenditures charged to other activities (37,500) (37,500)
Net 186,170 167,875 18,295
Other Financing Uses:
Transfer to Art Center Fund (61,000) (62,855) 1,855
Net change in fund balance (131,270) (167,037) (35,767)
Fund Balance-January 1 2,829,626 2,829,626 -
Fund Balance-December 31 $ 2,698,356 $ 2,662,589 $ (35,767)
86
—• CITY OF HOPKINS,MINNESOTA
REAL ESTATE PURCHASES AND SALES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
.� Year Ended December 31,2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Charges for services $ 3,700 $ 3,700 $ -
Investment earnings 2,039 2,505 466
Total Revenues 5,739 6,205 466
Expenditures: - - -
Net change in fund balance 5,739 6,205 466
Fund Balance-January 1 71,713 71,713 -
Fund Balance-December 31 $ 77,452 $ 77,918 $ 466
87
CITY OF HOPKINS,MINNESOTA
ART CENTER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
Intergovernmental: _
State grant $ 50,000 $ 50,000 $ -
Charges for services 236,725 346,497 109,772
Interest earnings - - - —
Total Revenues 286,725 396,497 109,772
Expenditures:
Salaries and employee benefits 302,461 274,610 27,851
Materials,supplies and services 105,777 136,147 (30,370) _
Total Expenditures 408,238 410,757 (2,519)
Other Financing Sources _
Transfer from other funds 147,920 147,920 -
Net change in fund balance 26,407 133,660 107,253
Fund Balance-January 1 (1,021,682) (1,021,682) -
Fund Balance-December 31 $ (995,275) $ (888,022) $ 107,253
88
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 1.1 -DOWNTOWN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Investment earnings $ 3,000 $ 20,138 $ 17,138
Other - 12,854 12,854
Total Revenues 3,000 32,992 29,992
_ Expenditures:
Materials,supplies and services 4,000 3,601 399
Net change in fund balance (1,000) 29,391 29,593
Fund Balance-January 1 954,307 954,307 -
Fund Balance-December 31 $ 953,307 $ 983,698 $ 30,391
89
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.1 -R.L.JOHNSON COMPANY SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive —
Budget Actual (negative)
Revenues:
Taxes: —
Tax increment $ 373,000 $ 371,125 $ (1,875)
Investment earnings 6,500 2,061 (4,439)
Total Revenues 379,500 373,186 (6,314)
Expenditures:
Materials,supplies and services 18,000 21,054 (3,054)
Capital outlay:
Site improvements-R.L.Johnson 170,588 170,588 - —
Total Expenditures 188,588 191,642 (3,054)
Other Financing Uses
Transfer to debt service, 1997-HRA (400,000) (400,000) -
Net change in fund balance (209,088) (218,456) (9,368)
Fund Balance-January 1 163,911 163,911 -
Fund Balance-December 31 $ (45,177) $ (54,545) $ (9,368)
90
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.6-SONOMA PROJECT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax increment $ 13,500 $ 18,544 $ 5,044
Investment earnings 500 370 (130)
Other 5,024 549 (4,475)
19,024 19,463 439
Expenditures:
Materials,supplies and services 425 407 18
—
Net change in fund balance 18,599 19,056 457
-- Fund Balance(Deficit)-January 1 (400,071) (400,071) -
Fund Balance(Deficit)-December 31 $ (381,472) $ (381,015) $ 457
—
91
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.7-THERMOTECH SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Investment earnings $ - $ - - - ••
Total Revenues - - - -
Expenditures:
Materials,supplies and services - 1,855 813 1,042
Capital outlay:
Site improvements - - - -
Total Expenditures - 1,855 813 1,042
Other Financing Sources:
Transfer from Economic Development - 1,855 1,855 -
Net change in fund balance - - 1,042 1,042
FundBalance-January 1 (1,042) (1,042) (1,042) - —
Fund Balance-December 31 $ (1,042) $ (1,042) $ - $ 1,042
92
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.8-DIAMOND LABS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Investment earnings $ 200 $ 294 $ 94
Total Revenues 200 294 94
Expenditures:
Materials, supplies and services 29,932 37,064 (7,132)
Net change in fund balance (29,732) (36,770) (7,038)
Fund Balance-January 1 36,770 36,770 -
Fund Balance-December 31 $ 7,038 $ - $ (7,038)
93
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.9-OAKS OF MAINSTREET SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes r.
Tax increment $ 120,000 $ 152,191 $ 32,191
Intergovernmenal
Market value aid credit 13,980 11,194 (2,786)
Investment earnings 4,600 3,723 (877)
Total Revenues 138,580 167,108 28,528
Expenditures
Materials,supplies and services 9,600 1,197 8,403
Other Financing Uses:
Transfer out for debt service (133,873) (133,000) 873 _
Net change in fund balance (4,893) 32,911 37,804
Fund Balance-January 1 202,226 202,226 -
Fund Balance-December 31 $ 197,333 $ 235,137 $ 37,804 —
94
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.10-BUSINESS DISTRICT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
_ Tax increment $ 87,000 $ 83,516 $ (3,484)
Investment earnings 1,000 805 (195)
Total Revenues 88,000 84,321 (3,679)
Expenditures:
Materials,supplies and services 82,395 126,233 (43,838)
Net change in fund balance 5,605 (41,912) (47,517)
Fund Balance-January 1 59,224 59,224 -
Fund Balance-December 31 $ 64,829 $ 17,312 $ (47,517)
95
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.11 -SUPERVALU SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND _
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with .�
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax Increments $ 350,000 $ 297,507 $ (52,493)
Investment earnings 35,000 43,837 8,837
385,000 341,344 (43,656)
Expenditures:
Materials,supplies and services 41,647 24,455 17,192 ..
Capital outlay:
Land - - -
Streets and Sidewalks - -Site Improvements - - -
Total Expenditures 41,647 24,455 17,192
Other Financing Sources(Uses):
Transfer out for debt service (183,830) (188,000) (4,170) _
Net change in fund balance 159,523 128,889 (30,634)
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Fund Balance-January 1 2,475,455 2,475,455 -
Fund Balance-December 31 $ 2,634,978 $ 2,604,344 $ (30,634)
96
CITY OF HOPKINS,MINNESOTA
BLOCK 64 DEVELOPMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Investment earnings $ - $ - $ 187 $ 187
Other - 147,000 147,500 500
Total Revenues - 147,000 147,687 687
Expenditures:
Materials,supplies and services - 147,000 145,923 1,077
Net change in fund balance - - 1,764 1,764
Fund Balance-January 1 (1,437) (1.437) (1,437) -
Fund Balance-December 31 $ (1,437) $ (1,437) $ 327 $ 1,764
97
CITY OF HOPKINS,MINNESOTA
PARA-TRANSIT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2005
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
Intergovernmental• _
State grant(Para-Transit) $ 104,684 $ 103,114 $ (1,570)
Charges for services 28,000 13,560 (14,440)
Total Revenues 132,684 116,674 (16,010) _
Expenditures:
Salaries and employee benefits 15,837 15,754 83 _
Materials, supplies and services 117,764 98,822 18,942
Total Expenditures 133,601 114,576 19,025
Other Financing Sources:
Transfer from the General Fund 11,499 - (11,499)
Net change in fund balance 10,582 2,098 (8,484)
Fund Balance-January 1 1,321 1,321 -
Fund Balance-December 31 $ 11,903 $ 3,419 $ (8,484)
98
CITY OF HOPKINS,MINNESOTA
HOUSING REHAB SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
—" Revenues:
Investment earnings 32,000 16,224 (15,776)
Other 100 113 13
Total Revenues 32,100 16,337 (15,763)
_ Expenditures:
Salaries and employee benefits 57,872 56,719 1,153
Materials,supplies and services 31,229 23,668 7,561
Total Expenditures 89,101 80,387 8,714
Net change in fund balance (57,001) (64,050) (7,049)
—
Fund Balance-January 1 960,247 960,247 -
Fund Balance-December 31 $ 903,246 $ 896,197 $ (7,049)
._ 99
CITY OF HOPKINS,MINNESOTA
PARKING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Court fines 40,000 40,000 28,669 (11,331)
Charges for services 56,500 56,500 54,262 (2,238) -
Investment earnings 7,500 7,500 5,005 (2,495)
Total Revenues 104,000 104,000 87,936 (16,064) -
Expenditures:
Salaries and employee benefits 66,203 66,203 67,567 (1,364) -
Materials,supplies and services 60,788 60,788 43,248 17,540
Capital outlay 15,000 45,000 - 45,000
Total Expenditures 141,991 171,991 110,815 61,176 -
Net change in fund balance (37,991) (67,991) (22,879) 45,112
Fund Balance-January 1 267,515 267,515 267,515 -
Fund Balance-December 31 $ 229,524 $ 199,524 $ 244,636 $ 45,112 -
100
CITY OF HOPKINS,MINNESOTA
SECTION 8 HOUSING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Intergovernmental:
_ Federal-Section 8 $ 124,000 $ 112,626 $ (11,374)
Investment earnings 3,500 1,987 (1,513)
Total Revenues 127,500 114,613 (12,887)
Expenditures:
Salaries and employee benefits 87,669 86,496 1,173
Materials,supplies and services 32,839 28,088 4,751
Capital outlay 2,500 - 2,500
Total Expenditures 123,008 114,584 5,924
Net change in fund balance 4,492 29 (4,463)
Fund Balance-January 1 105,035 105,035
Fund Balance-December 31 $ 109,527 $ 105.064 $ (4,463)
101
CITY OF HOPKINS,MINNESOTA
CABLE TV SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
Franchise fees $ 144,000 $ 151,516 $ 7,516 _
Charges for service - 80 80
Investment earnings 6,450 6,018 (432)
Total Revenues 150,450 157,614 7,164
Expenditures:
Salaries and employee benefits 13,780 11,706 2,074
Materials,supplies and services 82,309 52,673 29,636
Total Expenditures 96,089 64,379 31,710
Excess of revenues over expenditures 54,361 93,235 38,874
Other Financing Uses:
Transfer to Art Center Fund (86,920) (86,920) -
Net change in fund balance (32,559) 6,315 38,874
Fund Balance-January 1 321,565 321,565 -
Fund Balance-December 31 $ 289,006 $ 327,880 $ 38,874
102
CITY OF HOPKINS,MINNESOTA
DEPOT COFFEE HOUSE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2005
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Intergovernmental:
_ Federal grant $ 25,000 $ 25,000 $ 50,000 $ 25,000
State grant - - 6,000 6,000
Charges for services 164,000 164,000 160,643 (3,357)
Contributions 10,000 10,000 16,953 6,953
Total Revenues 199,000 199,000 233,596 34,596
Expenditures:
Salaries and employee benefits 101,037 21,667 17,446 4,221
Materials, supplies and services 94,030 173,400 196,356 (22,956)
Capital outlay 3,700 3,700 -
Total Expenditures 198,767 198,767 213,802 (18,735)
Net change in fund balance 233 233 19,794 19,561
Fund Balance-January 1 25,818 25,818 25,818
Fund Balance-December 31 $ 26,051 $ 26,051 $ 45,612 $ 19,561
103
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104
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units, which render services to the general public on a
user charge basis. Records are maintained on the accrual basis of accounting.
The Authority for these types of funds is derived from Section 11.01 of the City
— Charter, which allows for utility or other public service enterprise funds.
The City has seven Enterprise Funds, four of which are considered to be nonmajor,
they are:
Refuse Utility Fund
Pavilion/ice Arena Fund
_ Skate Park Fund
Housing Authority Fund
105
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
December 31,2005
Non Major Business-type Activities-Enterprise Funds
Nonmajor
Refuse Pavilion/ Housing Proprietary Funds
Utility Ice Arena Authority Total
ASSETS
Current assets
Cash and investments $ 326,779 $ - $ 273,421 $ 600,200
Accounts receivable 20 32,610 2,552 35,182
Accrued interest receivable 2,119 - - 2,119
Due from other funds - - - -
Due from other governments - - - -
Loan Receivable - 227,909 - 227,909
Inventory 3,404 - - 3,404
Prepaid expenses - - 16,044 16,044
Total current assets 332,322 260,519 292,017 884,858
Noncurrent assets
Capital Assets:
Land - - 170,299 170,299
Buildings and structures 302,727 3,217,460 3,190,213 6,710,400
Distribution system 2,584 52,726 - 55,310
Machinery and equipment 521,051 92,864 30,626 644,541
Construction in progress - - 102,902 102,902
Less accumulated depreciation (291,390) (822,666) (2,103,239) (3,217,295)
Total noncurrent assets 534,972 2,540,384 1,390,801 4,466,157
Total Assets 867,294 2,800,903 1,682,818 5,351,015
LIABILITIES
Current Liabilities:
Accounts payable 33,622 12,978 29,871 76,471
Salaries payable 3,097 3,083 17,376 23,556
Accured interest payable - 1,925 - 1,925
Due to other funds - 307,673 - 307,673
Compensated absences payable 15,090 10,780 10,189 36,059
Unearned revenue - 2,070 - 2,070
Total Current Liabilities 51,809 338,509 57,436 447,754
Noncurrent Liabilities:
Advance from other funds - 622,656 - 622,656
Total Liabilities 51,809 961,165 57,436 1,070,410
NET ASSETS
Invested in capital assets,
net of related debt 534,972 2,540,384 1,390,801 4,466,157
Unrestricted 280,513 (700,646) 234,581 (185,552)
Total net assets $ 815,485 $ 1,839,738 $ 1,625,382 $ 4,280,605
106
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31,2005
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
_ Refuse Pavilion/ Skate Housing Proprietary Funds
Utility Ice Arena Park Authority Total
Operating revenues:
Charges for services $ 705,138 $ 341,580 $ - $ 234,116 $ 1,280,834
Other - 5,763 - 36,607 42,370
Total Operating Revenues 705,138 347,343 - 270,723 1,323,204
Operating expenses:
Cost of sales and service 601,937 302,122 5,752 286,836 1,196,647
Administration 92,741 12,520 - 74,490 179,751
Depreciation 44,812 76,390 - 140,405 261,607
Total Operating Expenses 739,490 391,032 5,752 501,731 1,638,005
Operating losses (34,352) (43,689) (5,752) (231,008) (314,801)
Nonoperating revenues(expenses):
Investment earnings 6,295 - - - 6,295
Interest/fiscal agent expense - (4,690) - - (4,690)
Intergovernmental grants 22,667 - - 135,603 158,270
Gain on sale of assets 16,000 - - 16,000
Transfer of assets - (84,516) - (84,516)
Total nonoperating revenues
(expenses) 44,962 (4,690) (84,516) 135,603 91,359
Income(loss)before transfers 10,610 (48,379) (90,268) (95,405) (223,442)
Transfers in(out) (25,000) - 37,492 - 12,492
Change in net assets (14,390) (48,379) (52,776) (95,405) (210,950)
Total net assets-beginning 829,875 1,888,117 52,776 1,720,787 4,491,555
Total net assets-ending $ 815,485 $ 1,839,738 $ - $ 1,625,382 $ 4,280,605
107
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31,2005
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
Refuse Pavilion/ Skate Housing Proprietary Funds
Utility Ice Arena Park Authority Total
Cash Flows from Operating Activities
Receipts from customers and users $ 705,142 $ 412,755 $ - $ 266,053 $ 1,383,950
Internal activity-payments to other funds - (23,241) (21,730) - (44,971)
Internal activity-payments from other funds - - - 3,300 3,300
Payments to suppliers (512,540) (139,006) (5,762) (284,452) (941,760)
Payments to employees (256,160) (184,985) - (64,273) (505,418)
Payments for interfund services used (92,741) (12,520) - - (105,261)
Net cash provided by(used)by operating activities (156,299) 53,003 (27,492) (79,372) (210,160)
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 22,667 - - 135,603 158,270
Transfers(to)from other funds (25,000) - 37,492 - 12,492
Net cash provided by noncapital and related financing activities (2,333) - 37,492 135,603 170,762
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (4,971) - (10,000) - (14,971)
Construction of capital assets - (48,439) - (14,325) (62,764)
Proceeds from sale of capital assets 16,000 - - - 16,000
Interest and other payments - (4,564) - - (4,564)
Net cash used by capital and related financing activities 11,029 (53,003) (10,000) (14,325) (66,299)
Cash Flows From Investing Activities 7,366 - - - 7,366
Net increase(decrease)in cash and investments (140,237) - - 41,906 (98,331)
Cash and Investments-January 1 467,016 - - 231,515 698,531
Cash and Investments-December 31 $ 326,779 $ - $ - $ 273,421 $ 600,200
108
I I I I I I I I I I I I I I I I ! I
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS,(CONT.)
For the Year Ended December 31,2005
Reconciliation of operating loss to net
cash provided by(used)by operating activities:
Operating loss $ (34,352) $ (43,689) $ (5,752) $ (231,008) $ (314,801)
Adjustments to reconcile operating loss to net cash provided
by(used)by operating activities:
Depreciation expense 44,812 76,390 - 140,405 261,607
(Increase)decrease in:
4 28,451 - (1,370) 27,085
Accounts receivable
Due from other funds - -
Due from other governments - 38,000 - - 38,000
Inventory (407) - - (407)
Prepaid expense - - (1,933) (1,933)
Accounts,compensated absences and accrued interest payable (166,356) (21,869) (10) 14,534 (173,701)
Due to other funds - (23,241) (21,730) - (44,971)
Unearned revenue - (1,039) - - (1,039)
Net Cash Provided by(used)by Operating Activities $ (156,299) $ 53,003 $ (27,492) $ (79,372) $ (210,160)
109
CITY OF HOPKI NS, MINNESOTA -
COMPREHENSIVE ANNUAL FINANCIAL REPORT _
INTERNAL SERVICE FUND
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the government, on a cost
reimbursement basis. Revenues and expenses are recognized on the accrual basis. _
Revenues are recognized in the accounting period in which they are earned and
become objectively measurable; expenses are recognized in the period incurred, if
objectively measurable. —
Equipment Replacement Fund —This fund accounts for the acquisition of machinery
and equipment. User charges are billed to the various City departments. —
Insurance Risk Fund —This fund accounts for the dividends and deductibles relating _
to property and casualty insurance coverage. Deductibles are paid from past
dividends. Users are charged only if fund has a shortfall.
Employee Benefits Fund — This fund accounts for accrued employee benefits with
the governmental funds. User charges are billed to the various departments.
110
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
December 31,2005
Equipment Insurance Employee Totals
Replacement Risk Benefits 2004
ASSETS
Current assets:
_ Cash and investments $ 1,005,289 $ 180,652 $ 731,057 $ 1,916,998
Accounts receivable - 4,045 - 4,045
Advance to other funds 622,656 - - 622,656
Accrued interest receivable 5,566 1,146 4,283 10,995
Total current assets 1,633,511 185,843 735,340 2,554,694
Property and equipment
Machinery and equipment 6,310,699 - - 6,310,699
Total property and equipment 6,310,699 - - 6,310,699
Less accumulated depreciation (3,629,745) - - (3,629,745)
Net property and equipment 2,680,954 - - 2,680,954
Total Assets 4,314,465 185,843 735,340 5,235,648
LIABILITIES
Current Liabilities:
Accounts payable 309,978 1,986 - 311,964
Compensated absences payable - - 714,528 714,528
Total Liabilities 309,978 1,986 714,528 1,026,492
NET ASSETS
Invested in capital assets 2,680,954 - - 2,680,954
Unrestricted 1,323,533 183,857 20,812 1,528,202
Total net assets $ 4,004,487 $ 183,857 $ 20,812 $ 4,209,156
111
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,AND
CHANGES IN FUND NET ASSETS
Year Ended December 31,2005
Equipment Insurance Employee
Replacement Risk Benefits Total
Operating revenues:
Charges for services $ 256,920 $ 58,334 $ - $ 315,254
Operating expenses(excluding depreciation):
Materials,supplies and services 21,606 9,063 - 30,669
Operating income before depreciation 235,314 49,271 - 284,585
Depreciation expense 289,679 - - 289,679
Operating income (54,365) 49,271 - (5,094)
Nonoperating revenue:
Investment earnings 18,691 2,486 10,035 31,212
Gain on sale of property and equipment 43,955 - - 43,955
Total nonoperating revenues 62,646 2,486 10,035 75,167
Net Income 8,281 51,757 10,035 70,073
Transfer In 100,000 - - 100,000
Change in net assets 108,281 51,757 10,035 170,073
Fund Equity:
Net assets-January 1 3,896,205 132,100 10,777 4,039,082
Net assets-December 31 $ 4,004,486 $ 183,857 $ 20,812 $ 4,209,155
112
CITY OF HOPKINS,MINNESOTA
_ COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2005
Equipment Insurance Employee
Replacement Risk Benefits Totals
Cash Flows from Operating Activities
Receipts from customers and users $ - $ 54,289 $ - $ 54,289
Receipts from interfund services provided 620,105 - - 620,105
Payments to suppliers 285,502 (14,364) (224) 270,914
Payments for interfund services used (2,362) - 59,073 56,711
Net cash provided by operating activities 903,245 39,925 58,849 1,002,019
Cash Flows from Noncapital Financing Activities
Transfers(to)from other funds 100,000 - - 100,000
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (740,386) - - (740,386)
Proceeds from Sales of capital assets 43,955 - - 43,955
Advance to Pavilion for Mezzanine construction - - -Net cash used by capital and related
financing activities (696,431) - - (696,431)
Cash Flows From Investing Activities 15,235 2,187 9,669 27,091
Net increase(decrease)in cash and cash equivalents 322,049 42,112 68,518 432,679
Cash and Cash Equivalents-January 1 683,240 138,540 662,539 1,484,319
Cash and Cash Equivalents-December 31 $ 1,005,289 $ 180,652 $ 731,057 $ 1,916,998
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities:
Operating income(loss) $ (54,365) $ 49,271 $ - $ (5,094)
Adjustments to reconcile operating income(loss)to
net cash provided by operating activities:
Depreciation expense 289,679 - - 289,679
(Increase)decrease in:
Accounts receivable 326,841 (4,045) 322,796
Due from other funds 36,344 - - 36,344
Accounts,compensated absences and accrued intereset
payable 304,746 (5,301) 58,849 358,294
Net Cash Provided by Operating Activities $ 903,245 $ 39,925 $ 58,849 $ 1,002,019
113
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114 _.
NOUDIS lVD11SI1d1S
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d10SINNIW 'SNI)IdOH JO A-LD
CITY OF HOPKINS,MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
Years 2003 to 2005
(Unaudited)
Highways Urban Interest on
Fiscal General Public Health and and Redevelopment Culture and Long-Term
Year* Government Safe1y Welfare Streets &Housing Recreation Debt
2003 $ 1,411,159 $ 4,477,224 $ 185,893 $ 2,229,671 $ 1,596,395 $ 1,220,030 $ 1,650,989
2004 $ 1,150,064 $ 4,750,296 $ 180,314 $ 2,114,601 $ 939,846 $ 1,193,801 $ 1,604,523
2005 $ 1,421,579 $ 4,883,279 $ 176,590 $ 2,334,756 $ 913,645 $ 1,277,501 $ 1,480,148
*Government-wide expenses are not available for years prior to 2003.
Source: Hopkins Finance Department
116
Table I
Storm Housing and
Water Sewer Sewer Refuse Pavilion/ Skate Redevelopment
Utili Utility Utility Utility Ice Arena Park Authori Total
$ 1,075,399 $ 1,459,743 $ 409,282 $ 654,721 $ 339,511 $ 18,199 $ 2,155,131 $ 18,883,347
$ 1,053,600 $ 1,410,200 $ 429,768 $ 686,883 $ 367,367 $ 44,056 $ 425,024 $ 16,350,343
$ 1,080,393 $ 1,475,587 $ 457,183 $ 739,490 $ 395,722 $ 90,268 $ 501,731 $ 17,227,872
117
Table II
CITY OF HOPKINS,MINNESOTA
GOVERNMENT-WIDE REVENUES
Years 2003 to 2005
(Unaudited)
General Revenues
Grants and
Program Revenues Contributions
Charges Operating Capital Not Restricted Unrestricted
Fiscal for Grants and Grants and Property Tax to Specific Investment
Year* Services Contributions Contributions Taxes Increments Pro ram Earnings Other Total
2003 $ 6,717,000 $ 1,496,107 $ 1,138,389 $ 6,886,774 $ 2,214,833 $ 691,438 $ 453,412 $ 0 $ 19,597,953
2004 $ 4,859,869 $ 2,343,130 $ 1,467,946 $ 7,289,973 $ 2,177,518 $ 566,514 $ 418,263 $ 18,700 $ 19,141,913
2005 $ 5,358,156 $ 1,868,319 $ 75,169 $ 7,845,641 $ 970,846 $ 603,307 $ 434,439 $ 43,955 $ 17,199,832
*Government-wide revenues are not available for years prior to 2003
Source: Hopkins Finance Department
118
I I 1 1 I I I I 1 I 1 1 i 1 i i I I I
) 1 1 l 1 ) ) 1 1 1 ) 1 l I I I I I I
Table III
CITY OF HOPKINS, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Years 1996 Through 2005
(Amounts expressed in thousands)
(Unaudited)
Urban
Fiscal General Public Health and Highways Redevelopment Culture and Debt Capital
Year Government agfee1y Welfare and Streets and Housing Recreation Service Outlay Total
1996 $ 1,240 $ 2,727 $ - $ 1,587 $ 634 $ 146 $ - $ 4,265 $ 10,599
1997 1,255 2,807 - 1,518 1,535 317 - 11,922 19,354
1998 945 3,311 - 1,732 1,201 576 - 4,085 11,850
1999 938 3,401 - 1,732 1,176 716 - 6,931 14,894
2000 1,034 3,196 - 1,592 1,080 659 - 2,665 10,226
2001 1,077 3,399 - 1,693 1,141 667 - 4,668 12,645
2002 1,132 3,690 - 1,652 1,158 1,027 - 4,516 13,175
2003 1,259 4,433 186 1,675 1,596 1,045 3,096 9,031 22,321
2004 1,095 4,696 180 1,681 938 1,074 3,426 6,651 19,741
2005 1,375 4,848 177 1,812 911 1,094 3,841 2,489 16,547
Source: Hopkins Finance Department
119
Table IV
CITY OF HOPKINS,MINNESOTA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Years 1996 Through 2005
(Amounts expressed in thousands)
(Unaudited)
Charges
For Fees,
Services Licenses
Fiscal Property Tax Special Intergovern- and Other and Fines and
Year Taxes Increments Assessments mental Interest Miscellaneous Permits Forfeitures "Total
1996 $ 4,364 $ 1,412 $ 354 $ 3,018 $ 797 (1) $ 932 $ 352 $ 83 $ 1 1,312
1997 4,345 1,400 387 4,155 763 5,540 (2) 372 98 17,060
1998 4,253 1,951 822 2,424 608 5,090 (2) 337 134 15,618
1999 4,376 2,203 874 4,206 522 1,541 470 151 14,343
2000 4,656 2,233 1,109 3,719 745 914 428 148 13,952
2001 5,087 2,730 1,254 3,097 628 810 377 167 14,150
2002 6,215 2,004 1,363 2,791 584 1,361 468 148 14,934
2003 6,877 2,215 1,461 2,850 328 1,021 778 182 15,712
2004 7,283 2,178 1,442 1,759 340 1,492 687 197 15,378
2005 7,789 971 1,368 1,177 358 1,576 644 207 14,090
(1) Includes use of money and property
(2) Includes Oaks of Mainstreet real estate sales.
Source: Hopkins Finance Department
120
Table V
CITY OF HOPKINS,MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Years 1996 Through 2005
(Unaudited)
Collection Percentage Collection
of Current of Levy of Prior Percentage
Year's Taxes Collected Year's Taxes Market of Total
Year Total Tax During Fiscal During Fiscal During Fiscal Total Value Collections
Collect Lev 1 Period Period Period Collections Credit 2 to Tax Levy
1996 $ 4,178,410 $ 4,085,963 97.7% $ 21,978 $ 4,107,941 $ - 98.3%
1997 4,217,627 4,166,717 98.8% 29,181 4,195,898 - 99.5%
1998 4,232,961 4,203,506 99.3% 34,612 4,238,118 - 100.1%
1999 4,421,906 4,336,971 98.1% 20,552 4,357,523 - 98.5%
2000 4,672,756 4,611,366 98.7% 44,602 4,655,968 - 99.6%
2001 5,012,361 4,980,059 99.4% 83,221 5,063,280 - 101.0%
2002(a) 6,591,140 6,174,839 93.7% 40,356 6,215,195 188,266 97.2%
2003 7,168,252 6,816,768 95.1% 40,810 6,857,578 328,117 100.2%
2004 7,704,136 7,331,514 95.2% 49,213 7,380,727 293,810 99.6%
2005 8,120,078 7,771,899 95.7% 42,969 7,814,868 278,882 99.7%
(1)Tax levy is net of Homestead and Agricultural Credit Aid.
(2) In 2002,the State of Minnesota offset property tax collections with an aid- "Market Value Credit"
_ This aid directly offsets the amount of taxes the city collects from its taxpayers.
(a) Homestead and Agricultural Credit Aid is eliminated and Housing and Redevelopment Levy is immplemented
Source: Hopkins Finance Department
121
Table VI
CITY OF HOPKINS,MINNESOTA
TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY
Levy Years 1996 Through 2005 -
(Amounts expressed in thousands)
(Unaudited) -
Real Property Personal Property Total Ratio of Total -
Fiscal Tax Capacity Market Tax Capacity Market Tax Capacity Market Tax Capacity Value to
Year Value Value Value Value Value Value Total Market Value
1996 $ 15,772 $621,378 $ 285 $ 6,188 $ 16,057 $627,566 2.6 -
1997 14,734 662,246 250 6,254 14,984 668,500 2.2
1998 14,524 725,856 271 7,754 14,795 733,610 2.0
1999 15,507 787,397 264 7,784 15,771 795,182 2.0
2000 17,559 877,055 261 7,703 17,820 884,758 2.0
2001 13,406 963,398 155 7,803 13,562 971,202 1.4
2002 14,047 1,058,588 158 7,981 14,206 1,066,569 1.3 _
2003 14,852 1,271,928 166 8,141 15,018 1,280,069 1.2
2004 16,813 1,418,159 174 8,730 16,987 1,426,889 1.2
2005 16,811 1,451,810 174 8,454 16,985 1,460,264 1.2
Source: Hennepin County
122
r•
Table VII
CITY OF HOPKINS,MINNESOTA
PROPERTY TAX RATES-
DIRECT AND OVERLAPPING GOVERNMENTS
.. Years 1996 Through 2005
(Unaudited)
Payable
Fiscal Metro
^ Year cilty School Coum Council Other 1 Total
1996 27.19 75.08 37.45 6.36 2.33 148.41
1997 27.65 61.88 35.52 4.93 3.05 133.03
1998 30.46 61.06 38.39 5.65 2.50 138.06
1999 32.44 58.94 40.99 6.04 3.35 141.76
2000 32.19 56.56 39.66 6.04 3.04 137.49
2001 31.13 44.22 37.62 5.82 2.31 121.74
2002 54.79 15.03 50.49 3.53 5.16 128.94
2003 56.10 20.59 50.61 3.83 6.01 137.14
2004 56.66 22.20 47.32 3.50 5.26 134.94
2005 48.94 19.18 44.17 3.30 5.20 120.80
(1)The City is divided basically into Watershed Districts No. 1 and No. 3. The
difference in the tax capacity rates ranges from zero to less than 0.8%. In this
table, district No. 1 was used, as it is the higher rate. Beginning in 1996 the
County Park tax rate is added.
Source : Hennepin County
123
Table VIII
CITY OF HOPKINS, MINNESOTA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Years 1996 Through 2005
(Unaudited)
Current Special Percentage of Total Deferred Special Assessment
Assessment Current Special Current Collected Delinquent Specials Special Assessments Collected Balance End
Fiscal Becoming Due Assessments During Fiscal Collected During Delinquent at End Fiscal of Fiscal
Period During Fiscal Period Collected Period Fiscal Period of Fiscal Period Period Period
1996 $ 566,624 $ 502,634 88.7 $ 83,738 $ 36,057 $ 115,715 $2,231,205
1997 523,252 424,691 81.2 12,829 137,002 127,083 2,253,656
1998 486,705 465,226 95.6 6,742 36,136 45,676 6,931,540
1999 569,282 530,137 93.1 9,733 73,870 146,916 14,550,745
2000 1,105,792 1,035,393 93.6 33,701 111,264 87,383 13,513,832
2001 1,113,328 1,078,741 96.9 66,121 79,732 98,743 12,920,307
2002 1,158,625 1,281,498 110.6 45,013 108,843 36,656 12,536,223
2003 1,246,619 1,239,500 99.4 54,844 108,923 102,503 11,850,419
2004 1,202,674 1,176,081 97.8 81,236 49,181 12,104 11,275,920
2004 1,142,095 1,108,105 97.0 34,594 33,813 71,116 9,624,999
Source: Hopkins Finance Department
124
I I I I I I I I I I I I I I I I I I I
Table IX
CITY OF HOPKINS, MINNESOTA
RATIO OF NET BONDED DEBT
TO TAX CAPACITY VALUE AND NET BONDED DEBT PER CAPITA
Pay Years 1996 Through 2005
(Unaudited)
Ratio of
Tax Capacity Debt Payable Delinquent Net Bonded Net
Value Gross Cash and From Enterprise and Deferred Net Debt to Bonded
Population After Fiscal Bonded Investments Revenues and Special Bonded Tax Capacity Debt per
Year (1) Disparities Debt 2 on Hand/Escrowed Housing Fees Assessments Debt Value Capita
1996 16,534 $12,910,496 $22,228,543 (3) $1,125,661 $ 3,290,000 $ 2,267,262 $7,955,620 (a) 61.62% 481
1997 16,665 13,194,123 23,418,543 (4) 1,617,274 4,865,000 2,201,321 8,969,948 (a) 67.98% 538
1998 16,559 11,936,742 16,588,543 1,425,491 4,705,000 2,328,409 8,129,643 68.11% 491
1999 16,887 11,749,307 21,533,543 1,625,660 10,075,000 2,243,626 7,589,257 64.59% 449
2000 17,145 12,526,355 22,668,543 1,781,809 11,855,000 1,968,660 7,063,074 56.39% 412
2001 17,145 13,451,356 25,062,696 4,660,378 13,040,000 2,143,685 5,218,633 38.80% 304
2002 17,250 10,658,607 33,301,194 (5) 3,104,124 10,905,000 2,335,503 16,956,567 159.09% 983
2003 17,559 11,140,721 35,573,056 (6) 3,025,529 11,610,000 2,317,977 18,619,550 167.13% 1,060
2004 17,643 14,655,800 33,352,436 3,005,024 10,900,000 2,306,509 17,140,903 116.96% 972
2005 17,675 16,327,615 33,981,284 (7) 4,160,607 11,540,000 1,298,548 16,982,129 104.01% 961
(1) Source of population data: Metropolitan Council and Bureau of Census.
(2) Includes all long-term general obligation, special assessment and revenue bonded indebtedness
(3)Includes$3,795,000 of GO bonds and $3,795,000 of GO revenue bonds to be retired in 1998 from proceeds of Oaks of Mainstreet real estate sales.
(4)Includes $3,795,000 of GO bonds and$1,970,000 of GO revenue bonds to be retired in 1998 from proceeds of Oaks of Mainstreet real estate sales.
(5)Includes $10,760,000 of HRA Lease revenue bonds issued for new fire station and public works storage facility.
(6) Includes$3,050,000 of HRA Lease revenue bonds issued for police station remodeling.
(7)Includes $3,385,000 GO Refunding Bonds that will be used to refund four debt issues in February 2006.
(a) excludes Oaks of Mainstreet debt to be paid from real estate sales.
Source: Hopkins Finance Department
125
CITY OF HOPKINS,MINNESOTA Table X
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2005
(Unaudited)
r
MARKET VALUE $ 1,451,810,100
DEBT LIMIT 2%OF MARKET VALUE(1) $ 29,036,202
r
TOTAL BONDED DEBT $ 33,991,284
DEDUCTIONS (2): �.
Tax Increment Bonds $ 6,656,284
Revenue Bonds 4,830,000
Housing Improvement Bonds 6,710,000 ..
Special Assessment Bonds 1,675,000
19,871,284
Amount Available in Debt Service Funds 1,350,334
Total Deductions 21,221,618
TOTAL DEBT APPLICABLE TO DEBT LIMIT 12,769,666
LEGAL DEBT MARGIN $ 16,266,536
r
(1)M.S.A. Section 475.53
(2)M.S.A. Section 475.51
r
r
r
Source: Hopkins Finance Department
126
Table XI
CITY OF HOPKINS, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 2005
(Unaudited)
Net General Percentage
Obligation Applicable City Share
Debt 1 to Cijy of Debt
Direct Debt
City of Hopkins $ 4,796,040 100.00% $ 4,796,040
Overlapping Debt
Hennepin County 370,442,913 1.27 4,704,625
Independent School District#270 (Hopkins) 88,884,254 17.49 14,671,356
Independent School District#283 86,139,752 0.41 353,173
Hennepin Suburban Park District 45,571,202 1.67 761,039
Metropolitan Council 206,623,754 0.57 1,177,755
Hennepin Regional RR Authority 46,547,489 1.27 593,153
Total Overlapping Debt 22,261,101
Total Direct and Overlapping Debt $ 27,057,141
Direct Overlapping Total
Debt Ratios Debt Debt Debt
Ratio of Debt Per Capita(17,675 Population) $271 $1,259 $1,531
Ratio of Debt to Tax Capacity Valuation
(after fiscal disparities) of$16,327,615 (2) 29.37% 136.34% 165.71%
Ratio of Debt to Estimated Market Valuation
of$1,451,810,000 0.33% 1.53% 1.86%
(1)Excludes Revenue, Special Assessment and HRA Lease Revenue Bonds.
(2)Tax Capacity Values are based on payable 2005
Source: Hennepin County
127
Table XII
CITY OF HOPKINS, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES —
Years 1996 Through 2005
(Unaudited)
Total Percentage
Total General of Debt
Debt Governmenal to General _
Year Principal Interest Service Expenditures Expenditures
1996 $ 315,000 $ 213,706 $ 528,706 $ 12,231,910 4.3 _
1997 345,000 195,453 540,453 23,170,723 2.3
1998 345,000 176,616 521,616 19,720,492 2.6
1999 345,000 159,057 504,057 16,989,838 3
2000 345,000 180,332 525,332 11,941,411 4.4
2001 410,000 162,032 572,032 14,783,487 3.9
2002 2,470,000 (1) 137,625 2,607,625 18,500,553 14.1
2003 375,000 420,813 795,813 22,320,638 3.6
2004 455,000 695,450 1,150,450 19,741,200 5.8
2005 980,000 680,480 1,660,480 16,547,157 10.0
Note: Only debt that is considered applicable to the legal debt limit is included. All remaining debt is
paid through tax increments, enterprise funds or housing fees.
(1)Includes refunded debt in the amount of$2,110,000.
Source: Hopkins Finance Department
128
Table XIII
CITY OF HOPKINS,MINNESOTA
REVENUE BOND COVERAGE
WATER AND STORM SEWER REVENUE BONDS
Years 1996 Through 2005
(Unaudited)
Net
Fiscal Gross Operating Revenue Debt Service Coverage
Year Revenue Expenses (1) Available Principal Interest Total Ratio
- 1996 $ 513,513 $ 103,677 $ 409,836 $ 120,000 $ 118,238 $ 238,238 1.72 to 1
1997 469,938 88,715 381,223 125,000 155,973 280,973 1.36 to 1
1998 554,622 110,294 444,328 135,000 104,870 239,870 1.91 to 1
- 1999 643,303 84,280 559,023 140,000 98,750 238,750 2.34 to 1
2000 661,776 123,082 538,694 205,000 162,992 367,992 1.47 to 1
2001 1,665,217 814,419 850,798 345,000 369,893 714,893 1.19 to 1
2002 1,564,535 818,704 745,831 1,940,000 237,382 2,177,382 0.34 to 1
2003 1,609,319 861,283 748,036 355,000 196,290 551,290 1.36 to 1
2004 1,543,820 885,920 657,900 440,000 196,670 636,670 1.03 to 1
2005 1,654,761 932,974 721,787 440,000 209,745 649,745 1.11 to 1
(1) Excludes depreciation and debt expense.
Source: Hopkins Finance Department
129
Table XIV
CITY OF HOPKINS, MINNESOTA
DEMOGRAPHIC STATISTICS
Year 1996 Through 2005
(Unaudited)
(2) (3)
Fiscal (1) School %Unemployment —
Year Population Enrollment Rate*
1996 16,534 8,027 2.5%
1997 16,665 8,036 2.4%
1998 16,559 8,313 1.9%
1999 16,887 8,367 2.8%
2000 17,145 8,227 2.5%
2001 17,145 8,137 3.2%
2002 17,250 8,091 4.2%
2003 17,559 8,125 4.7%
2004 17,653 8,114 4.5%
2005 17,675 8,061 3.7%
*Hennepin County
Sources:
(1) Metropolitan Council
(2) School districts within Hopkins
(3)Minnesota Department of Employment and Economic Development
130
r
Table XV
CITY OF HOPKINS,MINNESOTA
1.. CONSTRUCTION AND PROPERTY VALUE
Years 1996 Through 2005
f, (Amounts expressed in thousands)
(Unaudited)
,r-
(1) (1)
Commercial Residential (2)
-r" Construction Construction Property Value
Fiscal Number of
Year Value Units Value Commercial Residential Nontaxable
r
1996 $ 12,499 344 $ 5,893 $ 163,722 $ 459,066 $ 78,897
r 1997 7,672 121 13,162 175,193 489,029 78,897
1998 7,478 371 4,214 187,238 542,793 85,491
1999 32.791 493 10,037 204,988 582,540 85,491
2000 6,818 227 10,234 236,557 640,831 85,491
2001 3,855 520 13,215 251,089 775,236 85,491
2002 3,617 210 22,306 260,337 797,543 85,491
2003 26,769 399 13,596 268,678 898,572 85,491
2004 3,535 454 12,697 293,193 1,124,966 201,273
2005 23,846 285 8,487 315,551 1,200,151 201,273
r
r
Sources:
(1)City Community Services Department
(2)County Assessor's Office
131
Table XVI
CITY OF HOPKINS, MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 2005
(Unaudited)
Amount of —
Percentage Estimated
Tax of Total Tax Tax City
Taxpayer Type of Business Capacity Cqpaciiy Receives —
1. Super Valu Grocery Warehouses 1,513,831 8.91% $ 601,451
2. Greenfield Apartments LLP Apartments 361,787 2.13% 144,459 —
3. Southwest Real Estate,Inc. Apartments/Assisted Living 319,882 1.88% 129,005
4. Duke Realty Ltd Partnership Office/Warehouses 315,935 1.86% 118,531
5. Ramsgate Apartments LLC Apartments 298,537 1.76% 124,697
6. Firstcal Ind 2 Acquisition LLC Office Park 230,394 1.36% 93,849
7. Atlas Cold Storage Warehouse 212,545 1.25% 85,018
8. Auburn Limited Partnership Townhouses 200,618 1.18% 79,805
9. Stiele &Bakken Investmerit LLC Bank/Office Park 192,970 1.14% 71,490 —
10. EDCO Products Inc. Industrial 173,344 1.02% 59,031
11. Westside Village Apartments 170,090 1.00% 69,824
12. Rosewood West Apartments 162,614 0.96% 65,755 —
13. Hopkins Mainstreet I1 LLC Business Park 159,089 0.94% 60,483
14. Continental Decatur LLC Industrial 151,961 0.89% 61,936
15. NAPCO International, Inc. Industrial 149,130 0.88% 45,981 —
16. Thermotech Company Industrial 146,635 0.86% 59,730
17. Knollwood Towers West Apartments 146,141 0.86% 59,611
18. Creekwood Estates Apts. LLC Apartments 144,569 0.85% 63,875
19. Hopkins Eleventh Ave LLC Industrial 139863 0.82% 52,470
20. Hopkins Housing Ltd Partnership Apartments/Townhomes 132,534 0.78% 53,082
Total 5,322,469 31.34% $ 2,100,083 —
Total City 2005 tax capacity= 16,985,332 100.00% —
Notes:
1)Tax capacity is a percentage of total market value. For taxes payable in 2005 these class rates are
1.25%for apartments and 1.5%of first$150,000 with balance at 2.0%for commercial/industrial properties.
2)The City of Hopkins receives approximately 40%of the total estimated tax for 2005,not including
fiscal disparities and tax increment adjustments. —
3)The estimated tax is based on the tax rates for payable 2005.
Source: Hennepin County
132
CITY OF HOPKINS,MINNESOTA Table XVII
.• MISCELLANEOUS STATISTICAL FACTS
December 31,2005
—r` (Unaudited)
Dated of Incorporation November 27, 18 93
r
Date of Adoption of City Charter December 2, 1947
1 Form of Government Council - Manager
Fiscal Year Begins January 1
Area of City 4.0 Square Miles
Miles of Streets and Alleys:
r^ Trunk Highways 1.6
County 6.3
City Streets 55.0
Alleys 9.9
r
Miles of Sewers:
Storm Sewers 21.4
Sanitary Sewers 43.4
Miles of Watermains 52.6
Building Permits:
1996 441
1997 886
1998 463
1999 587
2000 443
•- 2001 498
r
2002 488
2003 498
2004 542
2005 365
Estimated Cost:
1996 18,391,797
1997 20,834,150
1998 11,692,315
-- 1999 42,828,312
2000 17,051,981
2001 17,070,262
2002 34,562,884
2003 40,363,863
2004 34,316,423
2005 32,333,498
•. 133
Table XVII
CITY OF HOPKINS,MINNESOTA
MISCELLANEOUS STATISTICAL FACTS -CONTINUED
December 31, 2005 _
(Unaudited)
Fire Protection: —
Number of Stations 1
Number of Employees-Volunteer 36
Police Protection:
Number of Stations 1
Number of Employees 41 _
Parks:
City Parks 12 _
Playgrounds 1 —
Skating Rinks 18
Employees: '—
Regular 105
Part Time 8
Elections: —
Registered Voters - last general election 9,708
Number of votes cast last general election 2,186
Election day registrations 113 —
Percentage of registered voters voting 23%
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
2001 17,145 _
2002 17,250
2003 17,559
2004 17,643
2005 17,675
Source: Various City of Hopkins Departments
134