2004 City of Hopkins, MN Annual Report COMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS
1010 FIRST STREET SOUTH
HOPKINS, MINNESOTA 55343
for the
Year Ended
December 31 , 2004
DEPARTMENT OF FINANCE
_ Christine M. Harkess, CPA, CGFM, Finance Director
MEMBER OF GOVERNMENT FINANCE OFFICERS' ASSOCIATION
OF THE UNITED STATES AND CANADA
TELEPHONE: (952) 935-8474
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
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 65
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances -Nonmajor Governmental Funds 73
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
Page
Schedules of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds: —
State Chemical Assessment 81
Economic Development 82
Real Estate Purchases and Sales 83 —
Art Center 84
Tax Increment 1.1 - Downtown 85
Tax Increment 2.1 - R.L. Johnson Company 86
Tax Increment 2.6 - Sonoma Project 87
Tax Increment 2.7 - Thermotech 88
Tax Increment 2.8 - Diamond Labs 89 _
Tax Increment 2.9 - Oaks of Mainstreet 90
Tax Increment 2.10 - Business District 91
Tax Increment 2.11 - SuperValu 92 _
Para-Transit 93
Housing Rehab 94
Parking 95
Section 8 Housing 96 —
Cable TV 97
Depot Coffee House 98
Combining Statement of Net Assets -Nonmajor Enterprise Funds 100
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets -Nonmajor Enterprise Funds 101
Combining Statement of Cash Flows -Nonmajor Enterprise Funds 102 —
Combining Statement of Net Assets - Internal Service Funds 105
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Internal Service Funds 106 —
Combining Statement of Cash Flows - Internal Service Funds 107
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
Page
STATISTICAL SECTION
Government-wide information:
Government-wide Expenses by Function 110
Government-wide Revenues 112
Fund Information:
_ General Governmental Expenditures by Function 113
General Governmental Revenues by Source 114
Property Tax Levies and Collections 115
_ Tax Capacity Value and Market Value of All Taxable Property 116
Property Tax Rates - Direct and Overlapping Governments 117
Special Assessments Billings and Collections 118
Ratio of Net Bonded Debt to Tax Capacity Value and
Net Bonded Debt Per Capita 119
Computation of Legal Debt Margin 120
Computation of Direct and Overlapping Debt
Including Debt Ratios 121
Ratio of Annual Debt Service Expenditures for General Obligation
Bonded Debt to Total General Governmental Expenditures 122
Revenue Bond Coverage - Water and Storm Sewer
Revenue Bonds 123
Demographic Statistics 124
Construction and Property Value 125
Principal Taxpayers 126
Miscellaneous Statistical Facts 127
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2
City of 7fopkins
1010 First Street South • Hopkins, JbfN 55343-7573 • Phone:952-935-8474 • faX. 952-935-1834
Wed address:www.hopkinsmn.com
June 17, 2005
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, 2004 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, 2004, 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, 2004, 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.
The independent audit of the financial statements of the City of Hopkins was part of a broader,
federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies.
The standards governing Single Audit engagements require the independent auditor to report not
only on the fair presentation of the financial statements, but also on the audited government's
internal controls and compliance with legal requirements, with special emphasis on internal controls
and legal requirements involving the administration of federal awards. These reports are available
in the City of Hopkins separately issued Single Audit Report.
3
Partnering with the Community to Enhance the Quality of Life
•Inspire•Educate•Involve•Communicate•
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.
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 CounciUManager 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 by 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 fro 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 80-98. —
4
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-
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.
w 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. Although the nation is experiencing a weak economy,
Hopkins continues to show strong economic and redevelopment activities within the city. The
valuation of new construction in 2004 was $8.87 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 2004 include the following:
Activity Valuation
Commercial Additions/Alterations:
Walser addition $ 1,400,000
_ Nine Mile Cove $ 6,000,000
Regency Residential Development $11,400,000
Oakridge Country Club $12,000,000
_. Excelsior Tech Center $ 1,100,000
Excelsior Boulevard Reconstruction $ 4,500,000
Oakridge Place $ 9,000.000
Hopkins Honda $ 8,500,000
Dairy Queen Chill & Grill $ 8,000,000
5
Efforts are being made for continued development and growth for 2005 and beyond. It is
anticipated that approximately $125,300,000 of construction will also take place in the City of
Hopkins during 2005/2006. —
Some anticipated projects during this period include the following: —
Project Valuation
Hopkins House Redevelopment (the Summit) $15,000,000 —
Hopkins Honda $ 8,500,000
Super Valu Distribution Facility Expansion Upgrade $ 7,000,000
Market Place & Main Lofts $15,000,000 —
North Annex Redevelopment $40,000,000
Excelsior Boulevard Redevelopment
& Streetscape Improvements $ 3,800,000 —
6`h &Main Condominiums/Lofts $20,000,000
Oakridge Place I & 11 $19,000,000
SW Corner 17`h & Mainstreet Redevelopment not available —
NE Corner 5 1 & Hopkins Crossroads Redevelopment 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 2005, projects to be constructed include the redevelopment of the former Knox property with
Hopkins Honda, Block 64, phase II of Market Place Lofts and the redevelopment of the Hopkins —
House. 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. ._
Over the course of about six years, major improvements will continue to be made to County Road 3
along its entire length in Hopkins. The first phase of improvements occurred in 1998 between —
Shady Oak Road and 11th Avenue South. The second phase occurred in 1999 and 2001, between
Highway 169 to 11 th Avenue South. The third phase occurred in the year 2002 and 2003 between
Highway 169 and Blake Road. The final phase runs from Blake Road to Meadowbroke Road and —
should occur in 2005 and 2006.
Major Initiatives. For 2004, 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 2004 we accomplished our annual street repair and improvements, at a cost of approximately —
$1,046,000. The projects included replacing infrastructure, roadway surface, curb and gutters,
parking lot surfaces and alley reconstruction. The year also saw the completion of the public works
and fire station facility projects that began in 2003. The remodeling of the old fire station to provide —
more space for the police department began in 2004 and will conclude in 2005. These
improvements to facilities will provide safer and healthier work environments for city employees,
6
extend the life of the equipment used by these departments and meet federal and state standards for
witness and prisoner handling.
The water department is in the process of converting the larger commercial meters to a radio read
system. This project will be completed in 2005. Storm Sewer reconstruction projects totaling
$215,000 were also completed in 2004.
Other significant development in 2004 included the addition of locker rooms at the Pavilion at a
cost of$225,000 and city hall improvements totaling$2,930,000.
For the Future
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
2005-2006.
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
2004. Cash and investment balances at year-end totaled $21,055,639, 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 2004 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.
7
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 _
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 41%. During 2004, the City of —
Hopkins earned $418,263 as compared to 2003 earnings of$416,726. 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, 2003. 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,
J es A Genellie Christine M. Harkess, CPA, CGFM
Acting 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 31,2003
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.
EO
�A V
GCORPORATION
CU President
W7O�$I5ii. @S~
GICAGO /
Executive Director
9
CITIZENS
Boards & CITY
Commissions COUNCIL City Attorney
Administrative City Manager ——T— MIS
Services
City of
I
Minnetonka
I
Community Planning &Services Finance Economic Fire Police Public Works [Recreation
Development
• Assessing Economic Fire & Medical Patrol Building Maint. &
• City Clerk 0 Accounting Development Response Investigation Equipment
• Elections Housing g Prevention Communication Services
• Inspections 0 Utility Billing Planning & Emergency Crime Engineering
• Reception Zoning Preparedness Prevention Parks & Forestry
Public Housing Street/Traffic/
Refuse
• Water& Sewer
• Facilities Mgmt.
Activity Center
Center for the Arts
Depot
Pavilion/Ice Arena
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
CITY OFFICIALS
December 31, 2004
CITY COUNCIL
Term
Expires
Eugene Maxwell, Mayor 12-31-05
Bruce Rowan Councilmember 12-31-05
Diane Johnson Councilmember 12-31-07
Jay Thompson Councilmember 12-31-07
Rick Brausen Councilmember 12-31-05
ACTING CITY MANAGER
James A. Genellie
FINANCE DIRECTOR
Christine M. Harkess
11
CITY OF HOPKI NS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION II
FINANCIAL SECTION
12
KPMG LLP
4200 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402
Independent Auditors' Report
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, 2004, which collectively comprise the
City's basic financial statements as listed in the 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 and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free 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 includes examining,on a test basis,evidence supporting the amounts and
disclosures in the financial statements. An audit also includes 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, 2004, and the respective
changes in financial position and cash flows, where applicable, thereof and the respective budgetary
comparison for the general fund and major special revenue fund for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
The management's discussion and analysis on pages 15 through 26 and the schedule of funding progress in
footnote 9.2 on page 61 are not a required part of the basic financial statements, but are supplementary
information required by accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required 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 introductory section, combining and individual
nonmajor fund financial statements and schedules and the statistical section are presented for purposes of
•y additional analysis and are not a required part of the basic financial statements. The combining and
KPMG LLP,a U.S.limited liability partnjAp,is the U.S.
04 member firm of KPMG Intemational,a Swiss cooperative
individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole. The introductory section and the
statistical section 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.
In accordance with Government Auditing Standards, we have also issued our report dated June 17, 2005 on
our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
KPMG, LCP
June 17,2005
14
City of Hopkins
Management's Discussion and Analysis
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, 2004. 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$58 million. Of this
amount, (unrestricted net assets), approximately$22 million may be used to meet the City's
ongoing obligations to citizens and creditors.
_ • The City's total net assets increased by approximately$3 million.
• As of the close of the current fiscal year, the City of Hopkins governmental funds reported
combined ending fund balances of approximately$21 million, a decrease of approximately
$4 million in comparison with the prior year. Approximately$11 million of fund balance is
available for spending at the City's discretion(unreserved fund balance).
• As of December 31, 2004, unreserved fund balance for the General Fund was approximately
$4 million, or 52% of total general fund expenditures.
• The City of Hopkins total debt decreased by approximately$2 million(6 percent) during the
current fiscal year. The key factor for this decrease was the payment of principal on existing
debt.
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-two 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, capital improvements fund, permanent improvement revolving fund, 1997
G.O. housing bond fund, 1999A taxable housing improvement bonds and 1999B taxable housing —'
improvement bonds, all of which are considered to be major funds. Data from the other thirty-five
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 and Block 64 Development
funds. 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 44-62 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 65-107 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 $57,557,682 at the close
of the most recent fiscal year.
17
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
those assets that is 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 —
2004 2003 2004 2003 2004 2003
Assets
Current and other assets 36,163,349 42,256,027 2,998,008 3,870,212 39,161,357 46,126,239
Capital assets 35,895,287 29,333,962 19,650,391 19,135,790 55,545,678 48,469,752
Total assets 72,058,636 71,589,989 22,648,399 23,006,002 94,707,035 94,595,991 —
Liabilities
Other liabilities 4,383,483 4,071,586 1,409,586 998,280 5,793,069 5,069,866—
Long-term liabilities
outstanding 26,526,284 29,356,078 4,830,000 5,385,235 31,356,284 34,741,313
Total liabilities 30,909,767 33,427,664 6,239,586 6,383,515 37,149,353 39,811,179—
Net Assets
Invested in capital
assets, net of related
debt 11,950,343 15,459,174 14,380,391 13,425,790 26,330,734 28,884,964
Restricted 9,009,337 287,418 250,000 - 9,259,337 287,418—
Unrestricted 20,189,189 22,415,733 1,778,422 3,196,697 21,967,611 25,612,430
Total net assets $41,148,869 $38,162,325 $16,408,813 $16,622,487 $57,557,682 $54,784,812
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
($21,967,611) 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 increased by $2,772,870 during the current fiscal
year.
Governmental activities. Governmental activities increased the City of Hopkins net assets by
$2,986,544, thereby accounting for approximately 100 percent of the total growth in the net assets of
the City of Hopkins. Key elements of this increase are as follows: —
18 —
City of Hopkins Changes in Net Assets
December 31
Governmental Activities Business-Type Activities Total
2004 2003 2004 2003 2004 2003
Revenues:
Program revenues:
_ Charges for services 842,449 2,864,135 4,017,420 4,158,141 4,859,869 7,022,276
Operating grants and
contributions 2,110,441 1,394,761 232,689 304,150 2,343,130 1,699,111
Capital grants and
contributions 1,466,971 764,138 975 98,873 1,467,946 863,011
General revenues:
Property taxes 7,289,973 6,877,331 - 7,289,973 6,877,331
Tax increments 2,177,518 2,214,833 - 2,177,518 2,214,833
Grants and contributions
not restricted 566,514 691,438 - 566,514 691,438
Investment earnings 339,883 327,959 78,380 88,767 418,263 416,726
Transfers 126,240 - (126,240) - - -
Total revenues 14,919,989 15,134,595 4,203,224 4,650,131 19,123,213 19,784,726
Expenses:
_ General Government 1,150,064 1,411,159 - - 1,150,064 1,411,159
Public Safety 4,750,296 4,477,224 - - 4,477,224 4,477,224
Highways and Streets 2,114,601 2,229,671 - - 2,114,601 2,229,671
Urban Redevelopment and
Housing
939,846 1,596,395 - - 939,846 1,596,395
Culture and recreation 1,193,801 1,220,030 - - 1,193,801 1,220,030
Health and welfare 180,314 185,893 - - 180,314 185,893
Interest on long-term debt 1,604,523 1,650,989 - - 1,604,523 1,650,989
Water - - 1,053,600 1,075,399 1,053,600 1,075,399
Sewer - - 1,410,200 1,459,743 1,410,200 1,459,743
Storm Sewer - - 686,883 409,282 686,883 409,282
Refuse - - 429,768 654,721 429,768 654,721
Pavilion/Ice Arena - - 367,367 339,511 367,367 339,511
Skate Park - - 44,056 18,199 44,056 18,199
Housing and Redevelopment
Authority - - 425,024 448,669 425,024 448,669
Total expenses 11,933,445 12,771,361 4,416,898 4,405,524 16,350,343 17,176,885
Increase(decrease) in net assets 2,986,544 2,363,234 (213,674) 244,607 2,772,870 2,607,841
Net assets-January 1 38,162,325 35,799,091 16,622,487 16,377,880 54,784,812 52,176,971
Net assets- December 31 $41,148,869 $38,162,325 $16,408,813 $16,622,487 $57,557,682 $54,784,812
19
Property taxes increased in 2004 as a result of debt service levies and increased operating costs.
Expenses and Program Revenues -Governmental Activities
®Program revenues —
■Expenses J
$5,000,000
$4,000,000
I
$3,000,000
$2,000,000
$1,000,000
$0
General Public Safety Highways and Urban Culture and Health and Interest on long-
Government Streets Redevelopment recreation welfare term debt
and Housing
Revenues by Source-Governmental Activities 1
Investment earnings
Grants and contributions Charges for services '
not restricted 6%
4% i d
Tax increments Operating grants and
15% contributions
14%
I
,�IIIAFi Capital grants and
contributions
10%
Property taxes
49% V
20
1
Business-type activities. Business-type activities experienced no significant changes in net assets.
Expenses and Program Revenues -Business-type Activities
$1,500,000
$1,250,000
$1,000,000
0 Program revenues
M Expenses
$750,000 I --- -
i
s
$500,000 I-
$250,000 -
so
Water Sewer Refuse Storm Pavilion/Ice Skate Park Housing
Sewer Arena Authority j
Revenues by Source-Business-type Activities
Investment earnings
Operating grants 2%
and contributions
5%
Charges for services
93%
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$20,609,282, a decrease of$4,236,827 in comparison with the prior year.
Approximately one half of fund balance ($10,869,197) 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 $3,973,556. This represents 98% of the 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 51 percent of total general fund expenditures while total fund balance —
represents approximately 52 percent of that same amount.
The fund balance of the City of Hopkins general fund increased by $283,385 during the current --
fiscal year. The key factor in the increase is increased intergovernmental revenues ($60,027) and
charges for services in the community development department ($51,827) along with decreases in
expenditures for general government in the departments of mayor and council ($18,098), —
administrative services ($73,409); and in public works in the department of streets and alleys
($128,665).
The tax increment 1-2 entertainment district fund has a total fund balance of$28,812 all of which is
unreserved. The fund balance decreased by$24,057.
The capital improvement fund has a total fund balance of$1,526,732, all of which is reserved for
the facility project construction. The facility project construction is a combination of a new fire _
station, a new public works storage facility and remodeling of the police station. The net decrease
in fund balance during the current year in the capital improvement fund was $4,973,284.
The permanent improvement revolving fund has a total fund balance of$1,534,376, all of which is
designated for future street improvement projects. The net increase in fund balance during the
current year in the permanent improvement revolving fund was $371,118. --
22
The 1997 G.O. Housing bond fund has a total fund balance of$182,724, all of which is reserved for
the payment of debt service. The fund balance increased approximately five percent ($9,013).
The 1999A Taxable Housing Improvement bond fund has a total fund balance of$170,906, all of
which is reserved for the payment of debt service. The fund balance increased approximately five
percent ($7,700).
The 1999B Taxable Housing Improvement bond fund has a total fund balance of$303,758, all of
_ which is reserved for the payment of debt service. The fund balance increased approximately five
percent ($14,203).
_ 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 $672,748. The
unrestricted net assets are used to offset operating losses and pay for infrastructure improvements.
The decline in net assets amounted to ($254,583).
Unrestricted net assets of the Sewer fund at the end of the year amounted to $663,325. The
unrestricted net assets are used to offset operating losses and pay for infrastructure improvements.
The decline in net assets amounted to ($180,200). Revenues also fluctuate annually depending on
water usage. Expenses stay fairly constant.
Unrestricted net assets of the Storm Sewer fund at the end of the year amounted to $685,339. The
unrestricted net assets are used to pay for infrastructure improvements. The growth in net assets
amounted to $287,063. The Storm Sewer fund has experienced major infrastructure improvement
costs over the last several years, causing the City to issue several revenue bonds to pay for the
improvements. A portion of the revenues goes towards the payment of the debt in this fund.
Unrestricted net assets of the other proprietary funds did not experience significant changes.
General Fund Budgetary Highlights
The difference between the general fund original budget and the final amended budget resulted in a
budgeted increase of $18,269 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 2003 into 2004 and from 2004 into 2005 for uncompleted projects. The amount carried from
2003 into 2004 amounted to an increase of $47,396 and the amount carried from 2004 to 2005
amounted to a decrease of$65,665. The budget changes can be summarized as follows:
• Net increase of$25,677 in expenditures for general government activities.
• Net increase of$14,596 in expenditures for public safety.
• Net increase of$25,256 in expenditures for streets and highways.
• Net increase of$11,500 in expenditures for culture and recreation.
• Net decrease of$114,058 in expenditures for unallocated.
• Net increase of$18,760 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. There was no significant
budget to actual variances. —
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, 2004, amounts to $55,545,678 (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. The —
remodeling began for the new police facility. Construction in progress as of the close of the
fiscal year had reached $15,861,301.
• A variety of street construction projects and systems for existing streets were completed in
the current fiscal year at a cost of$756,254.
• Various building, infrastructure and improvements were completed in the current fiscal year
at a cost of$910,211. —
City of Hopkins Capital Assets
(net of depreciation) —
December 31
Governmental Activities Business-Type Activities Total
2004 2003 2004 2003 2004 2003
Land $ 5,772,023 $ 5,772,023 $ 211,697 $ 205,697 $ 5,983,720 $ 5,977,720
Buildings 4,021,812 4,156,101 3,915,189 3,238,395 7,937,001 7,394,496 —
Infrastructure 7,845,826 8,226,858 9,983,598 10,339,247 17,829,424 18,566,105
Improvements 705,479 752,966 3,749,999 3,519,895 4,455,478 4,272,861
Vehicles 790,727 717,658 437,428 221,442 1,228,155 939,100 —
Equipment 1,996,897 1,221,316 253,702 335,100 2,250,599 1,556,416
Construction in progress 14,762,523 8,487,040 1,098,778 1,276,014 15,861,301 9,763,054
$ 35,895,287 $ 29,333,962 $ 19,650,391 $ 19,135,790 $ 55,545,678 $48,469,752
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 54-55
of this report.
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of$33,352,436. Of this amount, $13,810,000 comprises housing and redevelopment —
authority lease revenue debt, $5,677,436 comprises tax increment redevelopment debt, and
$2,965,000 comprises general obligation and special assessment debt, all of which is backed by the
full faith and credit of the government. Another$5,630,000 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, $5,270,000, 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
2004 2003 2004 2003 2004 2003
HRA lease revenue bonds $ 13,810,000 $ 13,810,000 $ $ $ 13,810,000 $ 13,810,000
G.O.Tax increment bonds 5,677,436 6,733,056 5,677,436 6,733,056
G.O.Housing fee bonds 5,630,000 5,900,000 5,630,000 5,900,000
_ G.O. Redevelopment bonds 985,000 1,145,000 985,000 1,145,000
G.O.Special assessment bonds 1,980,000 2,275,000 - 1,980,000 2,275,000
Revenue bonds - - 5,270,000 5,710,000 5,270,000 5,710,000
$ 28,082,436 $ 29,863,056 $ 5,270,000 $ 5,710,000 $ 33,352,436 $ 35,573,056
The City of Hopkins total debt decreased by$2,220,620, (6 percent) during the current fiscal year.
The decrease was principal payments on debt.
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 2004. At December 31, 2004, the debt limit for the
City is $25,601,380. Of the total debt, $11,005,678 of general obligation and revenue bonds is
applicable to the limit. The legal debt margin is $14,595,702.
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 2005 budget.
Utility charges were reviewed and as a result water and refuse rates were increased. Tax rate
decreased due to the decertification of three tax increment districts, which increased the general tax _
base of the city allowing taxes to increase with minimal impact on property owners. Operating costs
within the general fund for the new public works and fire station facilities were expected to increase
slightly as these facilities became operational. Construction projects within the city totaling _
approximately $71,000,000 were to be completed in 2005. The City's population would remain
constant. The City anticipated inflationary increases of about 2% over the modified 2004 budget.
During the current fiscal year, unreserved fund balance in the general fund increased to $4,071,296.
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
S1NIWI1b1S IVI:)N`dNIA DIS` O
II NOIIDIS _
AOA4 l IVIDNVNIA ivnNN`d ]AISN]HRONOD
V-LOSINNIW 'SNI)IdOH AO Alli
City of Hopkins
Statement of Net Assets
December 31,2004
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and investments $ 17,939,955 $ 3,115,684 $ 21,055,639
Taxes receivable 133,777 - 133,777
Special assessments receivable 11,288,171 - 11,288,171
Accounts receivable 751,784 264,439 1,016,223
Intergovernmental receivable 890,042 38,000 928,042
Interest receivable 110,767 19,555 130,322
Internal balances 975,300 (975,300) -
Inventories 97,740 25,074 122,814
Prepaid items - 14,111 14,111
Restricted cash and investments 2,206,524 250,000 2,456,524
Deferred charges-issuance costs 45,681 - 45,681
Long-term receivables 1,723,608 246,445 1,970,053
Capital assets, non depreciable 20,534,546 •1,310,475 21,845,021
Capital assets, net of accumulated depreciation 15,360,741 18,339,916 33,700,657 --
Total assets 72,058,636 22,648,399 94,707,035
Liabilities
Accounts payable 1,218,604 535,085 1,753,689
Salaries payable 13,114 13,563 26,677
Due to other governments - 198,400 198,400
Accrued interest payable 673,808 93,027 766,835
Compensated absences due within one year 655,455 126,402 781,857
Unearned revenue 266,350 3,109 269,459
Bonds due within one year 1,556,152 440,000 1,996,152
Non current liabilities:
Bonds due in more than one year 26,526,284 4,830,000 31,356,284
Total liabilities 30,909,767 6,239,586 37,149,353
Net Assets
Invested in capital assets, net of related debt 11,950,343 14,380,391 26,330,734
Restricted for:
Facilities projects 1,575,732 - 1,575,732
Economic development 3,644,283 - 3,644,283
Debt service 3,789,322 250,000 4,039,322
Unrestricted 20,189,189 1,778,422 21,967,611
Total net assets $ 41,148,869 $ 16,408,813 $ 57,557,682
The notes to the financial statements are an integral part of this statement.
28
City of Hopkins
Statement of Activities
For the Year Ended December 31,2004
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 $ 1,150,064 $ 28,792 $ 423,028 $ 97,863 $ (600,381) $ $ (600,381)
(3,243,839)
Public Safety 4,750,296 65,692 1,090,765 350,000 (3,243,839)
Health and Welfare 180,314 14,183 93,990 - (72,141) (72,141)
Highways and Streets 2,114,601 51,233 23,201 980,322 (1,059,845) (1,059,845)
Urban Redevelopment and Housing 939,846 200,000 324,525 38,786 (376,535) (376,535)
Culture and Recreation 1,193,801 482,549 154,932 - (556,320) - (556,320)
Interest on long-term debt 1,604,523 - - - (1,604,523) (1,604,523)
Total Governmental activities 11,933,445 842,449 2,110,441 1,466,971 (7,513,584) - (7,513,584)
Business-type Activities:
Water 1,053,600 826,129 - - (227,471) (227,471)
Sewer 1,410,200 1,253,772 - (156,428) (156,428)
Storm Sewer 429,768 717,691 - - 287,923 287,923
Refuse 686,883 590,885 22,891 975 (72,132) (72,132)
Pavilion/Ice Arena 367,367 361,297 - - - (6,070) (6,070)
Skate Park 44,056 - - - (44,056) (44,056)
Housing and Redevelopment Authority 425,024 267,646 209,798 - 52,420 52,420
Total Business-type activities 4,416,898 4,017,420 232,689 975 - (165,814) (165,814)
Total government $ 16,350,343 $ 4,859,869 $ 2,343,130 $ 1,467,946 (7,513,584) (165,814) (7,679,398)
General revenues:
Property taxes 7,289,973 7,289,973
Tax increments 2,177,518 2,177,518
Grants&contributions not restricted 566,514 - 566,514
Unrestricted investment earnings 339,883 78,380 418,263
Transfers 126,240 (126,240) -
Total general revenues 10,500,128 (47,860) 10,452,268
Change in net assets 2,986,544 (213,674) 2,772,870
Net assets-beginning 38,162,325 16,622,487 54,784,812
Net assets-ending $ 41,148,869 $ 16,408,813 $ 57,557,682
The notes to the financial statements are an integral part of this statement.
29
City of Hopkins
Balance Sheet
Governmental Funds
December 31,2004
Permanent 1999-A 1999-B
Tax Increment Improvement Taxable Taxable
1-2 Capital Revolving Fund 1997 GO Housing Housing Other Total
Entertainment Improvement Housing Bond Governmental Governmental
General Fund District Fund Fund Improvement Improvement Funds Funds
Assets
Cash and investments $ 3,087,427 $ $ 62,657 $ $ 1,452,054 $ 179,094 $ 168,973 $ 299,689 $ 11,205,742 $ 16,455,636
Taxes receivable 47,717 - - - - - 86,060 133,777
Special assessments receivable - 2,311,643 2,281,363 2,153,827 3,847,127 694,211 11,288,171
Accounts receivable 137,634 - - 109,245 - - - 504,905 751,784
Intergovernmental receivable 52,748 - - - - - - 510,453 563,201
Interest receivable 23,908 382 7,002 1,094 1,032 1,831 68,644 103,893
Due from other funds 505,203 - - - - - 1,560,690 2,065,893
Inventories 97,740 - - 97,740
Restricted cash and investments - - 2,157,492 49,032 2,206,524
Long-term receivable 411,140 1,723,608 - - 300,000 2,434,748
Advance to other funds - - - - - 633,008 633,008
Total assets $ 4,363,517
_L_1186 647 $ 2,157,492 $ 3,879,944 $ 2,461,551 $ 2,323,832 $ 4,148,647 $ 15,612,745 $ 36,734,375
Liabilities and fund balances
Liabilities:
Accounts payable $ 223,998 $ 16 $ 622,548 $ 39,059 $ 126 $ 119 $ 208 $ 319,125 $ 1,205,199
Salaries payable - - - - - - - 13,114 13,114
Accrued interest payable 8,212 1,118 9,330
Due to other funds - 1,757,819 - - - 624,782 2,382,601
Due to other governments - - - - - 662 662
Advance from other funds - - - - - - 711,140 711,140
Unearned revenue 68,223 - - 2,306,509 2,278,701 2,152,807 3,844,681 1,152,126 11,803,047
Total liabilities 292,221 1,757,835 630,760 2,345,568 2,278,827 2,152,926 3,844,889 2,822,067 16,125,093
Fund balances:
Reserved for:
Inventory 97,740 - - - 97,740
Facility project - 1,526,732 - - 49,000 1,575,732
Rehab loans receivable - - - - - 385,398 385,398
Tax increment districts - - - 3,258,885 3,258,885
Advances to other funds - - - - - 633,008 633,008
Debt service - - - 182,724 170,906 303,758 3,131,934 3,789,322
Unreserved,reported in:
Capital projects funds - - 1,534,376 - - - 2,459,344 3,993,720
General fund 3,973,556 - - - 3,973,556
Special revenue funds - 28,812 - - - - - 2,873,109 2,901,921
Total fund balances 4,071,296 28,812 1,526,732 1,534,376 182,724 170,906 303,758 12,790,678 20,609,282
Total liabilities and fund balances $ 4,363,517 $ 1,786,647 $ 2,157,492 $ 3,879,944 $ 2,461,551 $ 2,323,832 $_4 48647 $ 15,612,745 $ 36,734,375
The notes to the financial statements are an integral part of this statement.
30
I I I I I I I I I I ! ! 1 I I I I I 1
City of Hopkins,Minnesota
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Assets
December 31,2004
Fund balances of governmental funds $ 20,609,282
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 45,609,592
Less accumulated depreciation (11,944,551)
Other long-term assets not available to pay current period expenditures and,therefore,are
deferred in the governmental funds. 11,536,697
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.
4,039,082
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 (28,746,914)
Less deferred charge for bond issuance costs 45,681
Net assets of governmental activities S 41.148.869
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 31,2004
Tax Increment Permanent 1999-A 1999-B
1-2 Capital Improvement 1997 G.O. Taxable Taxable Non-major Total
General Entertainment Improvement Revolving Housing Housing Housing Governmental Governmental
Fund District Fund Fund Bonds Improv. Improv. Funds Funds
Revenues
Property taxes $ 6,372,727 $ - $ - $ $ $ $ $ 910,985 $ 7,283,712
Tax increments - 50,396 - 2,127,122 2,177,518
Special assessments - - - 775,884 171,895 142,261 253,982 97,863 1,441,885
Intergovernmental 743,812 - - - - 1,014,761 1,758,573
Fees,licenses and permits 531,206 - 155,727 686,933
Charges for services 277,206 515,074 792,280
Fines 156,449 - - - - - - 40,888 197,337
Interest 48,919 729 8,008 29,339 2,414 2,472 4,391 243,611 339,883
Other miscellaneous revenues 298,714 - 350,000 - - - - 51,298 700,012
Total revenues 8,429,033 51,125 358,008 805,223 174,309 144,733 258,373 5,157,329 15,378,133
EXPENDITURES
Current:
General government 1,015,190 - 487 341 510 77,998 1,094,526
Public safety 4,588,464 - - 107,339 4,695,803
Health and welfare 57,814 - - 122,500 180,314
Highways and streets 1,627,347 - 54,137 1,681,484
Urban redevelopment and housing - 182 937,667 937,849
Culture and recreation 461,239 - - - - - 613,348 1,074,587
Debt service:
Interest and fiscal fees - 109,809 91,692 168,660 1,274,747 1,644,908
Principal retirement - - - - 55,000 45,000 75,000 1,605,620 1,780,620
Capital outlay 82,186 75,000 5,331,292 220,886 - - - 941,745 6,651,109
Total expenditures 7,832,240 75,182 5,331,292 220,886 165,296 137,033 244,170 5,735,101 19,741,200
Excess(deficiency)of revenues over
expenditures 596,793 (24,057) (4,973,284) 584,337 9,013 7,700 14,203 (577,772) (4,363,067)
Other financing sources(uses)
Transfer in - - - - - 2,594,787 2,594,787
Transfer out (313,408) (213,219) (1,941,920) (2,468,547)
Total other financing sources and
uses (313,408) (213,219) 652,867 126,240
32
City of Hopkins,Minnesota
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2004
Permanent 1999-A 1999-B
Tax Increment Taxable Taxable Non-major Total
1-2 Capital Improvement 1997 G.O.
Revolving Housing Housing Housing Governmental Governmental
Entertainment Improvement Improv. Improv. Funds Funds
General Fund District Fund Fund Bonds P P
Net change in fund balances 283,385 (24,057) (4,973,284) 371,118 9,013 7,700 14,203 75,095 (4,236,827)
Fund balances--beginning 3,787,911 52,869 6,500,016 1,163,258 173,711 163,206 289,555 12,715,583 24,846,109
32 $ 1,534,376 $ 182,724 $ 170,906 $ 303,758 $ 12,790,678 $ 20,609,282
Fund balances—ending $ 4,071,296 $ 28,812 $ 1,526,7
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 31,2004
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances--total governmental funds ($ 4,236,827)
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
6,014,829
outlays exceeded depreciation in the current period.
Revenues in the statement of activities that do not provide current financial resources
(976,975)
are not reported as revenues in the funds
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
govermental funds. Neither transaction,however,has any effect on net assets. Also,
govermental 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
1,821,005
debt related items.
External revenues and expenditures of the internal service funds reported in the statement of activities
364,512
are not reported as revenues and expenditures in governmental funds.
$ 2,986,544
Change in net assets of governmental activities
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 31,2004
Variance with _
final budget
Budget positive
Original Final Actual (negative)
Revenues -
Taxes
General property taxes $ 5,925,407 $ 5,631,132 $ 5,572,561 $ (58,571)
Fiscal disparities 740,729 740,729 800,166 59,437 -
Total Taxes 6,666,136 6,371,861 6,372,727 866
Licenses and permits
Business 128,375 128,375 137,217 8,842
Non-business 358,200 358,200 393,989 35,789
Total Licenses and permits 486,575 486,575 531,206 44,631
Intergovernmental
Market value aid credit - 294,275 294,275 -
State grants 164,110 164,110 163,337 (773)
Insurance premium-police 152,400 152,400 170,038 17,638
Insurance premium-fire 69,500 69,500 94,203 24,703
Federal grants - - 10,062 10,062
Other grants 3,500 3,500 11,897 8,397
Total intergovernmental 389,510 683,785 743,812 60,027
Fines and forfeitures
Court fines 137,000 137,000 156,449 19,449
Charges for services
General government 8,900 8,900 14,721 5,821
Public safety 50,800 50,800 73,693 22,893
Public works 5,650 5,650 5,383 (267)
Recreation 50,500 50,500 40,632 (9,868)
Community development 90,950 90,950 142,777 51,827
Total Charges for services 206,800 206,800 277,206 70,406
Other
Investment earnings 100,000 100,000 48,919 (51,081) _
Franchise fees 265,000 265,000 242,431 (22,569)
Miscellaneous 22,600 22,600 56,283 33,683
Total Other 387,600 387,600 347,633 (39,967) _
Total Revenues $ 8,273,621 $ 8,273,621 $ 8,429,033 $ 155,412
Expenditures
General Government:
Mayor and council
Salaries and employee benefits $ 26,509 $ 26,509 $ 27,007 $ (498)
Materials,supplies and services 70,804 76,804 58,208 18,596
Total 97,313 103,313 85,215 18,098
34
City of Hopkins,Minnesota
2of5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31,2004
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
General Government,(continued):
Administrative services
Salaries and employee benefits 322,258 322,258 267,452 54,806
Materials,supplies and services 52,270 52,270 36,420 15,850
Total 374,528 374,528 303,872 70,656
Less expenditures charged to other activities (100,033) (100,033) (102,786) 2,753
Net 274,495 274,495 201,086 73,409
Finance
Salaries and employee benefits 296,345 296,345 282,995 13,350
Materials,supplies and services 49,261 49,261 55,914 (6,653)
Total 345,606 345,606 338,909 6,697
Less expenditures charged to other activities (187,215) (187,215) (185,341) (1,874)
- Net 158,391 158,391 153,568 4,823
Legal Services
Materials,supplies and services 123,980 123,980 118,280 5,700
Municipal Building
Salaries and employee benefits 67,026 67,026 69,876 (2,850)
Materials,supplies and services 171,763 171,763 152,172 19,591
Capital outlay - 11,500 15,537 (4,037)
Total 238,789 250,289 237,585 12,704
Less expenditures charged to other activities (167,760) (167,760) (172,500) 4,740
Net 71,029 82,529 65,085 17,444
Elections
Salaries and employee benefits 12,545 12,545 17,997 (5,452)
Materials,supplies and services 19,290 19,290 17,342 1,948
Total 31,835 31,835 35,339 (3,504)
City Clerk and Reception
Salaries and employee benefits 107,100 107,100 118,205 (11,105)
Materials,supplies and services 11,224 11,224 10,266 958
Capital outlay - 8,180 9,672 (1,492)
Total 118,324 126,504 138,143 (10,147)
Less expenditures charged to other activities (34,000) (34,000) (34,045) 45
Net 84,324 92,504 104,098 (10,102)
_ Assessing
Salaries and employee benefits 93,519 93,516 106,187 (12,671)
Materials,supplies and services 71,516 71,516 76,110 (4,594)
Total 165,035 165,032 182,297 (17,265)
Less expenditures charged to other activities (20,562) (20,562) - (20,562)
Net 144,473 144,470 182,297 (37,827)
35
City of Hopkins,Minnesota �.
3of5
Statement of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual -
General Fund
For the Year Ended December 31,2004
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
General Government,(continued):
Planning and economic development
Salaries and employee benefits 86,302 86,302 88,332 (2,030)
Materials,supplies and services 10,484 10,484 25,877 (15,393)
Total 96,786 96,786 114,209 (17,423)
Less expenditures charged to other activities (18,778) (18,778) (18,778)
Net 78,008 78,008 95,431 (17,423)
Total General Government 1,063,848 1,089,525 1,040,399 50,618
Public Safety:
Police
Police Administration
Salaries and employee benefits 293,694 293,694 299,938 (6,244)
Materials,supplies and services 96,007 96,007 60,829 35,178
Total 389,701 389,701 360,767 28,934
Less expenditures charged to other activities (302,000) (302,000) (301,887) (113)
Net 87,701 87,701 58,880 28,821
Police Patrol and Investigation
Salaries and employee benefits 1,989,406 1,994,152 2,050,635 (56,483)
Materials,supplies and services 566,510 566,510 588,057 (21,547)
Capital outlay 4,000 4,000
Total 2,555,916 2,564,662 2,638,692 (74,030)
Police Services
Salaries and employee benefits 619,833 619,833 638,426 (18,593)
Materials,supplies and services 237,727 237,727 222,000 15,727
Capital outlay 10,000 15,850 11,302 4,548 �-
Total 867,560 873,410 871,728 1,682
Total Police 3,511,177 3,525,773 3,569,300 (43,527)
Fire
Salaries and employee benefits 312,989 312,989 380,633 (67,644)
Materials,supplies and services 224,179 224,179 222,696 1,483
Capital outlay - - 10,000 (10,000)
Total 537,168 537,168 613,329 (76,161)
Inspections
Salaries and employee benefits 338,268 338,268 331,375 6,893
Materials,supplies and services 108,989 108,989 95,762 13,227
Total 447,257 447,257 427,137 20,120 -
Total Public safety 4,495,602 4,510,198 4,609,766 (99,568)
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 31,2004
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued)
Health and Welfare:
Inspections
Salaries and employee benefits 42,412 42,412 40,506 1,906
_ Materials,supplies and services 25,264 25,264 17,308 7,956
Total 67,676 67,676 57,814 9,862
Total Health and welfare 67,676 67,676 57,814 9,862
Highways and Streets:
Public works buildings and equipment services
Salaries and employee benefits 206,459 206,459 207,078 (619)
Materials,supplies and services 49,032 49,032 53,136 (4,104)
Capital outlay - 2,800 2,147 653
Total 255,491 258,291 262,361 (4,070)
Less expenditures charged to other activities (193,056) (193,056) (198,489) 5,433
Net 62,435 65,235 63,872 1,363
Public Works Administration and Engineering
Salaries and employee benefits 283,579 283,579 249,629 33,950
Materials,supplies and services 43,896 43,896 50,355 (6,459)
J` Total 327,475 327,475 299,984 27,491
Less expenditures charged to other activities (205,608) (205,608) (198,955) (6,653)
Net 121,867 121,867 101,029 20,838
Streets and Alleys
Salaries and employee benefits 390,090 390,090 313,200 76,890
Materials,supplies and services 300,711 300,711 254,571 46,140
Capital outlay 30,000 35,000 29,365 5,635
Total 720,801 725,801 597,136 128,665
Less expenditures charged to other activities (108,584) (108,584) (108,584)
Net 612,217 617,217 488,552 128,665
Sidewalk Repair and Mall Maintenance:
Salaries and employee benefits 7,359 7,359 29,480 (22,121)
Materials,supplies and services 39,171 39,171 27,247 11,924
Total 46,530 46,530 56,727 (10,197)
Signs,Signals and Lighting:
Salaries and employee benefits 41,549 41,549 55,121 (13,572)
-- Materials,supplies and services 200,901 200,901 187,772 13,129
Total 242,450 .242,450 242,893 (443)
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 31,2004
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 495,497 495,497 494,417 1,080 -
Materials,supplies and services 185,083 201,539 211,369 (9,830)
Capital outlay 1,000 1,463 (463)
Total 680,580 698,036 707,249 (9,213)
Total Highways and Streets 1,766,079 1,791,335 1,660,322 131,013
Culture and Recreation:
Activity center
Salaries and employee benefits 180,198 180,198 184,183 (3,985)
Materials,supplies and services 93,463 93,463 83,610 9,853
Capital outlay - 6,500 2,700 3,800
Total 273,661 280,161 270,493 9,668
Park and Recreation
Salaries and employee benefits 54,399 54,399 38,550 15,849
Materials,supplies and services 143,650 148,650 154,896 (6,246)
Total 198,049 203,049 193,446 9,603
Total Culture and Recreation 471,710 483,210 463,939 19,271
Unallocated
Materials,supplies and services 114,058 -
Total Expenditures $ 7,978,973 $ 7,941,944 $ 7,832,240 $ 150,180
Other Financing Sources(Uses):
Transfers out: (294,648) (313,408) (313,408) -
Net change in fund balance 18,269 283,385 265,116
Fund Balance-January 1 3,787,911 3,787,911 3,787,911 -
Fund Balance-December 31 $ 3,787,911 $ 3,806,180 $ 4,071,296 $ 265,116
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, 2004
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Taxes:
Tax increment $ 49,500 $ 49,500 $ 50,396 $ 896
Investment earnings 700 700 729 29
Total Revenues 50,200 50,200 51,125 925
Expenditures:
Materials,supplies and services 400 400 182 218
Capital outlay:
Public improvements 29,925 104,525 75,000 29,525
Total Expenditures 30,325 104,925 75,182 29,743
Net change in fund balance 19,875 (54,725) (24,057) 30,668
Fund Balance-January 1 52,869 52,869 52,869 -
Fund Balance-December 31 $ 72,744 $ (1,856) $ 28,812 $ 30,668
The notes to the financial statements are an integral part of this statement.
39
CITY OF HOPKINS,MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31,2004
Business-type Activities-Enterprise Funds
Governmental
Non-major Activities _
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
ASSETS
Current assets
Cash and investments $ 628,579 $ 1,040,295 $ 748,279 $ 698,531 $ 3,115,684 $ 1,484,319
Accounts receivable 130,051 90,657 43,731 264,439 -
Accrued interest receivable 4,148 6,529 7,487 1,391 19,555 6,874
Due from other governments 38,000 38,000 326,841
Advance to other funds 659,000
Loan receivable - 246,445 246,445 -
Inventory 13,387 8,690 2,997 25,074
Prepaid expenses - 14,111 14,111
Restricted cash and investments 250,000 - 250,000
Total current assets 776,165 1,146,171 1,005,766 1,045,206 3,973,308 2,477,034
Noncurrent assets
Capital Assets:
Land 16,447 5,150 26,800 163,300 211,697
Buildings and structures 44,486 - - 6,583,234 6,627,720
Distribution system 8,262,608 5,543,180 8,234,923 55,310 22,096,021
Machinery and equipment 320,024 294,533 12,876 844,519 1,471,952 5,794,437
Construction in progress 275,258 362,434 253,096 207,990 1,098,778
Less accumulated depreciation (4,104,071) (2,846,716) (1,785,182) (3,119,808) (11,855,777) (3,564,191)
Net noncurrent assets 4,814,752 3,358,581 6,742,513 4,734,545 19,650,391 2,230,246
Total Assets 5,590,917 4,504,752 7,748,279 5,779,751 23,623,699 4,707,280 �'
LIABILITIES
Current Liabilities: - _
Accounts payable 32,335 244,938 8,071 249,741 535,085 12,743
Salaries payable 4,796 2,356 302 6,109 13,563
Due to other funds - 316,300 316,300
Due to other governments 198,400 198,400
Compensated absences payable 31,206 37,152 4,107 53,937 126,402 655,455
Unearned revenue - - - 3,109 3,109
Accrued interest payable 35,080 57,947 93,027
Revenue bonds-current 115,000 - 325,000 - 440,000
Total Current Liabilities 218,417 482,846 395,427 629,196 1,725,886 668,198
Noncurrent Liabilities: ...
Advance from other funds - - 659,000 659,000
Revenue bonds payable 1,515,000 3,315,000 - 4,830,000
Total noncurrent liabilities 1,515,000 3,315,000 659,000 5,489,000
Total Liabilities 1,733,417 482,846 3,710,427 1,288,196 7,214,886 668,198
NET ASSETS
Invested in capital assets,
net of related debt 3,184,752 3,358,581 3,102,513 4,734,545 14,380,391 2,230,246
Restricted for debt service - - 250,000 - 250,000 -
Unrestricted 672,748 663,325 685,339 (242,990) 1,778,422 1,808,836
Total net assets $ 3,857,500 $ 4,021,906 $ 4,037,852 $ 4,491,555 $ 16,408,813 $ 4,039,082
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 31,2004
Business-type Activities-Enterprise Funds
Governmental
_ Non-major Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Operating revenues:
Charges for services $ 794,200 $ 1,238,879 $ 674,553 $ 1,177,315 $ 3,884,947 $ 310,730
Other 31,929 14,893 43,138 42,513 132,473
Total Operating Revenues 826,129 1,253,772 717,691 1,219,828 4,017,420 310,730
Operating expenses:
Cost of sales and service 603,842 1,119,019 31,024 1,080,310 2,834,195 33,376
Administration 171,983 195,124 79,071 159,529 605,707 -
Depreciation 234,863 96,057 178,026 283,491 792,437 303,029
Total Operating Expenses 1,010,688 1,410,200 288,121 1,523,330 4,232,339 336,405
Operating income(loss) (184,559) (156,428) 429,570 (303,502) (214,919) (25,675)
Nonoperating revenues(expenses):
Investment earnings 17,888 26,228 24,140 10,124 78,380 44,646
Interest/fiscal agent expense (42,912) - (141,647) - (184,559)
Intergovernmental grants - - 232,689 232,689 326,841
Gain on sale of equipment - - - 975 975 18,700
Total nonoperating revenues
(expenses) (25,024) 26,228 (117,507) 243,788 127,485 390,187
-- Income(loss)before transfers (209,583) (130,200) 312,063 (59,714) (87,434) 364,512
Transfers in(out) (45,000) (50,000) (25,000) (6,240) (126,240)
Change in net assets (254,583) (180,200) 287,063 (65,954) (213,674) 364,512
Total net assets-beginning 4,112,083 4,202,106 3,750,789 4,557,509 16,622,487 3,674,570
Total net assets-ending $ 3,857,500 $ 4,021,906 $ 4,037,852 $ 4,491,555 $ 16,408,813 $ 4,039,082
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 31,2004
Business-type Activities-Enterprise Funds
Governmental
Other Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Cash Flows from Operating Activities
Receipts from customers and users $ 816,140 $ 1,262,345 $ 717,691 $ 1,175,175 $ 3,971,351 $ 53,600
Receipts from interfund services provided - - - 358,242
Internal activity-payments to other funds (51,896) (17,267) (223,710) (292,873)
Internal activity-payments from other funds - - 298,000 298,000
Payments to suppliers (313,026) (711,386) (17,125) (578,243) (1,619,780) (37,816)
Payments to employees (290,179) (191,319) (23,197) (458,664) (963,359)
Payments for interfund services used (166,448) (189,484) (78,521) (109,308) (543,761) 18,905
Net cash provided by(used in)operating activities (5,409) 152,889 375,138 326,960 849,578 392,931
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 232,689 232,689
Transfers in(out) (45,000) (50,000) (25,000) (6,240) (126,240)
Net cash provided by(used in)noncapital financing activities (45,000) (50,000) (25,000) 226,449 106,449
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets - (215,131) (215,131) (1,151,200)
Construction of capital assets (313,400) (327,498) (262,230) (188,779) (1,091,907)
Proceeds from Sales of capital assets - 975 975 18,700
Advance to Pavilion for Mezzanine construction - - (9,785)
Loan to Hockey Association - (246,445) (246,445)
Advance from Equipment fund - 9,785 9,785
Interest and other payments (45,067) (151,603) - (196,670)
Bond payments (110,000) (330,000) - (440,000)
Net cash used in capital and related
financing activities (468,467) (327,498) (743,833) (639,595) (2,179,393) (1,142,285)
Cash Flows From Investing Activities 16,791 23,195 20,511 10,487 70,984 55,061
Net decrease in cash and investments (502,085) (201,414) (373,184) (75,699) (1,152,382) (694,293)
Cash and Investments-January 1 1,130,664 1,241,709 1,371,463 774,230 4,518,066 2,178,612
Cash and Investments-December 31 $ 628,579 $ 1,040,295 $ 998,279 $ 698,531 $ 3,365,684 $ 1,484,319
42
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS,(CONT.)
PROPRIETARY FUNDS
For the Year Ended December 31,2004
Reconciliation of operating income(loss)to net
cash provided by operating activities:
(156,428) $ 429,570 $ (303,502) $ (214,919) $ (25,675)
Operating income(loss) $ (184,559) $
Adjustments to reconcile operating income
(loss)to net.cash provided by(used in)operating
activities:
Depreciation expense 234,863 96,057 178,026 283,491 792,437 303,029
(Increase)decrease in: -
Accounts receivable (9,989) 8,573 - (5,506) (6,922)
- - - 2,700 2,700 101,112
Due from other funds
Due from other governments - - ( ,000) (38,000) _
Inventory (251) 1,337 (2,010) (924)
_ _ 4,597 4,597
Prepaid expense -
Accounts,compensated absences and accrued interest payable 6,423 22,217 (8,748) 87,928 107,820 14,465
Due to other funds (51,896) (17,267) (223,710) 295,300 2,427
Due to other governments - 198,400 - 198,400 -
Unearned revenue - - 1,962 1,962
Net cash provided by(used in)operating activities $ (5,409) $ 152,889 $ 375,138 $ 326,960 $ 849,578 $ 392,931
The notes to the financial statements are an integral part of this statement.
43
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2004 '-
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 accounting principles generally accepted
in the United States of America, 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
from this unit is combined with data of the primary government. The City's blended component unit has a March
31 year-end,however when blended with the City it is shown with a December 31 year-end.
Blended Component Unit
Housing and Redevelopment Authority in and for the City of Hopkins(HRA)
The HRA was created by the City to carry out certain redevelopment projects and low-income rental housing.
Individuals on the City Council represent the governing board of the HRA. The housing activity is supported in
part by federal subsidies. There is an extensive trust agreement between the HRA and HUD regarding the facility.
The HRA is included in the City's enterprise funds. Separate financials are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., statement of net assets and the statement of changes in net assets)
report information on all of the nonfiduciary activities of the primary government and its component units. For
the most part, the effect of interfund activity has been removed from these statements. 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, even though the latter
are excluded from the government-wide financial statements. 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 31,2004
revenue as soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at
year end.
Governmental finds 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 capital improvement fund accounts for funds set aside for the construction and improvement of City
facility and infrastructure.
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 West Brook 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 West Brook 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, sewer and storm sewer funds account for the activities related to the City's water, sewer and storm
sewer services. The City operates the water distribution system, sewer lift stations and disposal, and storm
sewer maintenance.
45
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
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 program
revenues. Likewise,general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and _
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations. The principal operating revenues of the City enterprise funds and
internal service funds are charges to customers for sales and service. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses and depreciation on capital —
assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first,and then use unrestricted resources as they are needed.
46
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2004
D. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments, (See
Note 2). 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. INTERFUND RECEIVABLES/PAYABLES
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e. the non-current portion of interfund loans). All other outstanding balances
between funds are reported as "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
"internal balances."
Advances between funds, as reported in the fund financial statements,are 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
Certain proceeds of the City's housing and redevelopment lease revenue bonds and housing bonds 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 developer 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 31,2004
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 $66,400 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 31,2004
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, 2004, there were 12 note/bond issues outstanding, with an aggregate principal amount payable of
approximately$48 million.
O. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America, 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 31,2004
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 $ 28,082,436 —
Accrued interest payable 664,478
Net adjustment to reduce fund balance–total governmental
funds to arrive at net assets–governmental activities &2aa46.914
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 $ 6,856,955 —
Depreciation expense (842,126)
Net adjustment to increase net changes in fund balances–
total governmental funds to arrive at changes in net assets
of governmental activities 6.014.829 —
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:
Principal debt service payments 1,780,620
Deferred issuance costs ( 2,404) —
Reverse prior years interest expense 704,863
Accrue interest expense for current year (664,478)
Net adjustment to increase net changes in fund balances–
total governmental funds to arrive at changes in net assets
of governmental activities 1.821.005
50
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
3 STEWARDSHIP COMPLIANCE AND ACCOUNTIBILITY
A.BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the Hennepin County CDBG special revenue fund, the Block 64 Development special
revenue fund 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 reduction was $65,665 as funds were moved to 2005 for uncompleted 2004 projects. An
significant adjustment was also made in the economic development fund to account for grant revenues and
their related expenditures.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2004, actual expenditures exceeded the budgeted amount in the Housing Rehab
fund by $6,800, the Depot Coffee House fund by $11,038, the Art Center fund by $9,712 and the Tax Increment
District 2-10 fund by$306. These over expenditures were funded by greater than anticipated revenues in the case
of the Depot Coffee House and Art Center fund and by available fund balance in the Housing Rehab and 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 31,2004
C. FUND BALANCE DEFICITS
At December 31, 2004, the following funds had deficit fund balances or net assets. These deficits will be
corrected through future tax levies,contributions or charges for services:
Art Center $1,021,682
Tax Increment 2.6 $ 400,071
Tax Increment 2.7 $ 1,042
Block 64 Development $ 1,437
4. CASH AND INVESTMENTS
A.DEPOSITS
In accordance with Minnesota Statues, the City maintains deposits at financial institutions within the state,
designated as official depositories by the City Council,all of which are members of the Federal Reserve System.
Balances at December 31, 2004,were as follows: --
Caning Value Bank Balance
$ 468,202 $1,179,478
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 below, 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, 2004 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.
Deposits are carried at cost plus accrued interest. The carrying amount of deposits are included in cash and
investments on the balance sheet.
Investments are reported at fair value based on quoted market prices. Investment earnings are accrued at the
balance sheet date.
B. INVESTMENTS
The City is authorized by Minnesota Statutes to invest in the following:
(a)Direct obligations or obligations guaranteed by the United States or its agencies.
(b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose
only investments are in securities described in(a)above.
(c)General obligations in the State of Minnesota or any of its municipalities;
(d)Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System;
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality,
and maturity in 270 days or less; and
52
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
(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 City's investments are categorized below to give an indication of the level of custodial credit risk assumed at
year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the
City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the
securities are held by the counterparty's trust departments or agent in the City's name. Category 3 includes
uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust
department or agent, but not 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.
Investment balances at December 31,2004,were as follows:
Custodial Credit Risk Category
Securities Type 1 2 3 Fair Value
U.S.Government
Agency Securities $15,470,089 $ - $ - $15,343,618
Commercial Paper 7,700,343 - - 7,700,343
Total Investments $23,170,432 $ - $ - $23,043,961
Total Deposits (See Note 4A) 468,202
Total Investments and Deposits 23,512,163
Less Restricted Cash and Investments 2,456,524
Net Cash,Cash Equivalents and Investments $ 21.055.639
In fiscal 2004,the City recorded an unrealized loss of$121,471 for certain investments.
53
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2004
5. CAPITAL ASSETS _
Capital asset activity for the year ended December 31,2004 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 8,487,040 6,275,483 - 14,762,523
Total not being depreciated 14,259,063 6,275,483 - 20,534,546
Capital assets,being depreciated
Buildings 6,008,329 18,237 $ - 6,026,566
Infrastructure 15,302,741 426,210 (258,094) 15,470,857
Other Improvements 1,966,200 5,861 - 1,972,061
Vehicles 2,620,956 224,500 (150,903) 2,694,553
Machinery&Equipment 3,769,030 1,014,279 (77,863) 4,705,446
Total being depreciated 29,667,256 1,689,087 (486,860) 30,869,483
Less accumulated depreciation:
Buildings (1,852,228) (152,526) - (2,004,754)
Infrastructure (7,075,883) (549,148) - (7,625,031)
Other Improvements (1,213,234) (53,348) - (1,266,582)
Vehicles (1,903,298) (151,431) 150,903 (1,903,826)
Machinery&Equipment (2,547,714) (238,702) 77,867 (2,708,549) _
Total accumulated depreciation (14,592,357) (1,145,155) 228,770 (15,508,742)
Total capital assets,being
depreciated,net 15,074,899 543,932 (258,090) 15,360,741
Governmental activities capital
assets,net $29,333,962 $6,819,415 $ (258,090) $35,895,287
54
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities:
Capital assets,not being depreciated
Land $ 205,697 $ 6,000 $ - $ 211,697
_ Construction in Progress 1,276,014 572,773 (750,009) 1,098,778
Total not being depreciated 1,481,711 578,773 (750,009) 1,310,475
Capital assets,being depreciated
Buildings 5,735,746 891,974 - 6,627,720
Infrastructure 17,866,948 38,800 - 17,905,748
Other Improvements 3,882,296 307,977 - 4,190,273
Vehicles 529,808 239,523 (23,190) 746,141
Machinery&Equipment 725,811 - 725,811
Total being depreciated 28,740,609 1,478,274 (23,190) 30,195,693
Less accumulated depreciation:
Buildings (2,505,537) (206,994) - (2,712,531)
Infrastructure (7,527,701) (394,449) - (7,922,150)
Other Improvements (350,248) (90,026) - (440,274)
Vehicles (308,367) (23,536) 23,190 (308,713)
Machinery&Equipment (394,677) (77,432) - (472,109)
Total accumulated depreciation (11,086,530) (792,437) 23,190 (11,855,777)
Total capital assets,being
depreciated,net 17,654,079 685,837 18,339,916
Business-type activities capital
assets,net $19,135,790 $1,246,610 $(750,009) $19,650,391
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 49,846
Public safety 40,386
Highways and streets 633,911
Urban redevelopment and housing 1,997
Culture and recreation 115,986
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 303,029
Total depreciation expense—governmental activities S1_05 155
Business-type activities:
Water $ 234,863
Sewer 96,057
Storm Sewer 178,026
Refuse 32,122
Pavilion/Ice arena 75,502
Skate Park 42,587
Housing and Redevelopment Authority 133,280
Total depreciation expense—business-type activities 2 4 7
55
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
Construction commitments
The City has active construction projects as of December 31, 2004. The projects include a new public works storage
facility, a new fire station and remodeling the police department. The City's commitments with contractors related to
the new public works storage facility, fire station and police remodeling project is $1,401,739.
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 31,2004:
Due from other funds
Non-major
General governmental Total
Due to other funds: _
Tax Increment 1.2 - 1,124,811 1,124,811
Non-major governmental 188,903 435,879 624,782
Non-major business-type 316,300 - 316,300
Total due to other funds 505,203 1,560,690 2,065,893
Advance from other funds
Non-major Internal
Governmental service Total _
Advance to other funds:
Non-major governmental 633,008 633,008
Non-major business-type 659,000 659,000
Total advance to other funds 633,008 659,000 1,292,008
The interfund receivables and payables allow the City to borrow the resources of one fund to facilitate a project or
operations of another fund.
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31,2004:
Transfers in
Non-major
governmental
Transfers out:
General 313,408
Permanent Improvement Revolving 213,219
Water 45,000
Sewer 50,000 _
Storm Sewer 25,000
Non-major governmental 1,941,920
Non-major business-type 6,240
Total transfers out 2,594,787
56
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
Interf ind 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) An annual transfer from the General Fund to the Paratransit fund to support operations of this fund. The
transfer in 2004 is $15,648.
3) An annual transfer from the Economic Development Fund to the Art Center Fund 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 2.0-8.0% $12,415,000 $ 10,485,000
Governmental activities—refunding 3.0-8.1% 7,268,543 1,807,436
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2005 731,152 852,179
2006 1,451,284 692,148
2007 745,000 591,825
2008 780,000 550,376
2009 815,000 505,925
2010-2014 3,460,000 1,844,376
2015-2019 2,940,000 886,113
2020-2023 1,370,000 137,698
Total $12,292,436 $6,060,640
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$1,980,000.
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2005 $ 305,000 $ 66,651
2006 305,000 56,927
2007 315,000 46,378
2008 320,000 34,854
2009 200,000 24,865
2010-2013 535,000 34,770
Total $ 1,980,000 $264,445
57
City of Hopkins,Minnesota _
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
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 $2,390,000
Water tower painting,meter system replacement 4.5- 5.5% 2,060,000 1,630,000 --
Storm sewer -refunding 2.75-3.65% 1,610,000 1,250,000
Revenue bond debt service requirements to maturity are as follows: _
Year Ending
December 31 Principal Interest
2005 $ 440,000 $ 215,302
2006 450,000 198,902
2007 475,000 181,304
2008 495,000 162,202 _
2009 505,000 141,851
2010-2014 1,900,000 430,613
2015-2019 670,000 108,505 _
2020-2023 335,000 27,881
Total $ 5,270,000 $ 1,466,560
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 $10,760,000
Police Station improvements 2.0- 4.35% 3,050,000 3,050,000 -"
58
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2004
Annual debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2005 $ 520,000 $ 580,894
2006 520,000 566,519
2007 535,000 551,969
2008 545,000 536,318
2009 565,000 518,829
2010-2014 3,140,000 2,258,504
2015-2019 3,910,000 1,463,616
2020-2024 4,075,000 426,830
Total $13,810,000 $6,903,479
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market value. At December
31, 2004,the debt limit for the City is $25,601,380. Of the total debt, $11,005,678 of general obligation and revenue
bonds is applicable to the limit. The legal debt margin is$14,595,702.
Changes in long-tern liabilities
Long-tenn liability activity for the year ended December 31, 2004,was as follows:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental activities:
Bonds payable:
General obligation bonds $ 13,778,056 $ - $ 1,485,620 $ 12,292,436 $ 731,152
Special assessment bond 2,275,000 - 295,000 1,980,000 305,000
Public facility lease bonds 13,810,000 - - 13,810,000 520,000
Total bonds payable 29,863,056 1,780,620 28,082,436 1,556,152
Compensated absences 634,140 21,315 - 655,455 655,455
Governmental activity
_ Long-term liabilities $ 30,497,196 $ 21,315 $ 1,780,620 $28,737,891 $ 2,211,607
Business-type activities:
Bonds payable:
Revenue bonds $ 5,710,000 $ - $ 440,000 $ 5,270,000 $ 440,000
Compensated absences 123,809 2,593 - 126,402 126,402
Business-type activity
Long-term liabilities $ 5,833,809 $ 2,593 $ 440,000 $ 5,396,402 $ 566,402
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.
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2004
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. —
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, 2004, 2003, and 2002 were $213,189, $233,325 and $219,858, respectively. The _
City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2004, 2003,
and 2002 were $161,777, $154,824 and $142,797, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
60
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2004
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.
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:
2004 Contributions: City $ 31,535
State $104,852
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
_ 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)
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%
61
City of Hopkins,Minnesota _
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2004
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. '
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 $385,398 at December 31,2004.
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.
62
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.
63
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.
64 —
CITY OF HOPKINS,MINNESOTA
_ I of 8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2004
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 $ 3,669 $ 879,392 $ 71,279 $ $ $ 295,022
Taxes receivable - 4,343 - - 24,689
Special Assessments receivable - -
Accounts receivable - 6,572 19,207
Rehabilitation loans receivable - 284,603 100,795
Accrued interest receivable - 5,389 434 1,810
Due from other funds - 1,560,690 -
Due from other governments 6,692 48,319
Advance to other funds 633,008
Long term loans receivable - 300,000
Restricted cash and investments
Total Assets $ 10,361 $ 3,040,989 $ 71,713 $ 149,114 $ 19,207 $ 954,529
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 88 $ 4,859 $ $ 7,500 $ 3,981 $ 222
Salaries payable 117 2,161 4,429
Accrued interest payable 17 1,095
Due to other funds 2,854 184,826 -
Due to other governments
Unearned revenue 204,343 - 135,418 -
Advance from other funds - 711,140 -
Total Liabilities 205 211,363 10,371 1,040,889 222
Fund balances:
Reserved for:
Restricted cash and investments - -
Reserved for Rehab loans receivable - 284,603 100,795
Reserved for Tax Increment Districts - - 321,299
Reserved for advance to other funds - - 633,008
Reserved for debt service - -
Unreserved:
Designated 10,156 37,948
Undesignated - 2,545,023 71,713 - (1,021,682)
Total Fund Balances 10,156 2,829,626 71,713 138,743 (1,021,682) 954,307
Total Liabilities and Fund Balance $ 10,361 $ 3,040,989 $ 71,713 $ 149,114 $ 19,207 $ 954,529
65
CITY OF HOPKINS,MINNESOTA
2of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2004
Special Revenue Funds
Tax
Tax Tax Tax Tax Increment
Increment Increment Increment Increment District
District District District District Oaks of
R.L.Johnson Sonoma Thermotech Diamond Labs Mainstreet
ASSETS
Cash and investments $ 328,426 $ 35,602 $ $ 65,924 $ 199,984
Taxes receivable 4,212 1,131
Special Assessments receivable
Accounts receivable
Rehabilitation loans receivable _
Accrued interest receivable 2,009 218 - 402 1,224
Due from other funds -
Due from other governments -
Advance to other funds -
Long term loans receivable -
Restricted cash and investments -
Total Assets $ 334,647 $ 35,820 $ - $ 66,326 $ 202,339
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 170,736 $ 12 $ - $ 29,556 $ 113
Salaries payable
Accrued interest payable 6
Due to other funds 435,879 1,036
Due to other governments
Unearned revenue -
Advance from other funds
Total Liabilities 170,736 435,891 1,042 29,556 113
Fund balances:
Reserved for:
Restricted cash and investments -
Reserved for Rehab loans receivable -
Reserved for Tax Increment Districts 163,911 - 36,770 202,226
Reserved for advance to other funds - -
Reserved for debt service - -
Unreserved:
Designated - -
Undesignated - (400,071) (1,042)
Total Fund Balances 163,911 (400,071) (1,042) 36,770 202,226
Total Liabilities and Fund Balance $ 334,647 $ 35,820 $ - $ 66,326 $ 202,339
66
CITY OF HOPKINS,MINNESOTA
3 of 8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2004
Special Revenue Funds
Tax Tax
Increment Increment
District District Block 64 Housing
Business District Supervalu Development Para-Transit Rehab
ASSETS
Cash and investments $ 90,138 $ 2,462,154 $ - $ 5,710 $ 908,977
Taxes receivable
Special Assessments receivable - -
Accounts receivable - -
Rehabilitation loans receivable - - -
Accrued interest receivable 551 15,075 - 5,877
Due from other funds - - -
Due from other governments - - - 23,497 -
Advance to other funds - -
Long term loans receivable - - -
Restricted cash and investments - - - 49,000
Total Assets $ 90,689 $ 2,477,229 $ - $ 29,207 $ 963,854
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 31,465 $ 1,774 $ 1,250 $ 27,616 $ 2,399
Salaries payable - - 270 958
Accrued interest payable
Due to other funds - - 187 -
Due to other governments - - - - 250
Unearned revenue - - -
Advance from other funds - - -
Total Liabilities 31,465 1,774 1,437 27,886 3,607
Fund balances:
Reserved for:
Restricted cash and investments - - 49,000
Reserved for Rehab loans receivable
Reserved for Tax Increment Districts 59,224 2,475,455
Reserved for advance to other funds - - -
Reserved for debt service -
Unreserved:
... Designated - 95,000
Undesignated - (1,437) 1,321 816,247
Total Fund Balances 59,224 2,475,455 (1,437) 1,321 960,247
Total Liabilities and Fund Balance $ 90,689 $ 2,477,229 $ - $ 29,207 $ 963,854
67
CITY OF HOPKINS,MINNESOTA
4of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS -
December 31,2004
Special Revenue Funds ._
Depot
Section 8 Coffee
Parking Housing Cable TV House Total
ASSETS
Cash and investments $ 294,123 $ 84,882 $ 280,498 $ 2,236 $ 6,008,016
Taxes receivable 34,375
Special Assessments receivable -
Accounts receivable 1,126 45,551 30,309 102,765 _
Rehabilitation loans receivable 385,398
Accrued interest receivable 1,801 539 1,704 37,033
Due from other funds 1,560,690
Due from other governments 2,799 21,878 4,956 108,141
Advance to other funds - 633,008
Long term loans receivable 300,000
Restricted cash and investments - 49,000
Total Assets $ 299,849 $ 107,299 $ 327,753 $ 37,501 $ 9,218,426
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 3,930 $ 874 $ 6,064 $ 8,950 $ 301,389
Salaries payable 1,344 1,390 124 2,321 13,114
Accrued interest payable 1,118
Due to other funds 624,782
Due to other governments - 412 662
Unearned revenue 27,060 - 366,821
Advance from other funds 711,140
Total Liabilities 32,334 2,264 6,188 11,683 2,019,026
Fund balances:
Reserved for:
Restricted cash and investments 49,000
Reserved for Rehab loans receivable - 385,398
Reserved for Tax Increment Districts 3,258,885
Reserved for advance to other funds - 633,008
Reserved for debt service -
Unreserved:
Designated - - 143,104
Undesignated 267,515 105,035 321,565 25,818 2,730,005
Total Fund Balances 267,515 105,035 321,565 25,818 7,199,400
Total Liabilities and Fund Balance $ 299,849 $ 107,299 $ 327,753 $ 37,501 $ 9,218,426
68
CITY OF HOPKINS,MINNESOTA
5 of 8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2004
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 $ 370,837 $ 722,114 $ 102,936 $ 93,640 $ 22,672
Taxes receivable
Special Assessments receivable 694,211
Accounts receivable -
Rehabilitation loans receivable
Accrued interest receivable 2,272 4,403 628 571 137
Due from other funds
Due from other governments
Advance to other funds -
Long term loans receivable
Restricted cash and investments
Total Assets $ 373,109 $ 726,517 $ 797,775 $ 94,211 $ 22,809
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 50 $ 129 $ 29 $ 33 $ 27
Salaries payable
-- Accrued interest payable
Due to other funds
Due to other governments
Unearned revenue 693,222
Advance from other funds
Total Liabilities 50 129 693,251 33 27
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 373,059 726,388 104,524 94,178 22,782
Unreserved:
Designated
Undesignated
Total Fund Balances 373,059 726,388 104,524 94,178 22,782
Total Liabilities and Fund Balance $ 373,109 $ 726,517 $ 797,775 $ 94,211 $ 22,809
69
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2004
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 investments $ 216,816 $ 128,386 $ 177,067 $ 173,019 $ 110,121
Taxes receivable 1,742 4,440 6,488 3,682
Special Assessments receivable
Accounts receivable
Rehabilitation loans receivable
Accrued interest receivable 1,322 778 1,053 1,007 658
Due from other funds
Due from other governments
Advance to other funds
Long term loans receivable
Restricted cash and investments _
Total Assets $ 218,138 $ 130,906 $ 182,560 $ 180,514 $ 114,461
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 141 $ 74 $ 81 $ 76 $ 61
Salaries payable
Accrued interest payable
Due to other funds
Due to other governments
Unearned revenue 1,596 4,078 5,317 3,353
Advance from other funds - -
Total Liabilities 141 1,670 4,159 5,393 3,414
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 217,997 129,236 178,401 175,121 111,047
Unreserved:
Designated -
Undesignated -
Total Fund Balances 217,997 129,236 178,401 175,121 111,047
Total Liabilities and Fund Balance $ 218,138 $ 130,906 $ 182,560 $ 180,514 $ 114,461
70
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2004
Debt Service Funds
Tax HRA Lease HRA Lease
Increment B Revemue Revemue
Bonds of Bonds of Bonds of
2002 2002 2003 Total
_.. ASSETS
Cash and investments $ 152,514 $ 725,809 $ 112,029 $ 3,107,960
Taxes receivable 35,333 51,685
Special Assessments receivable - 694,211
Accounts receivable -
Rehabilitation loans receivable -
Accrued interest receivable 930 4,269 682 18,710
Due from other funds -
Due from other governments -
Advance to other funds -
Long term loans receivable -
Restricted cash and investments - 32 32
Total Assets $ 153,444 $ 765,443 $ 112,711 $ 3,872,598
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 128 $ 591 $ 126 $ 1,546
Salaries payable -
Accrued interest payable
Due to other funds -
Due to other governments -
Unearned revenue - 31,552 739,118
Advance from other funds -
Total Liabilities 128 32,143 126 740,664
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 153,316 733,300 112,585 3,131,934
Unreserved: ,
Designated - -
Undesignated -
Total Fund Balances 153,316 733,300 112,585 3,131,934
Total Liabilities and Fund Balance $ 153,444 $ 765,443 $ 112,711 $ 3,872,598
71
CITY OF HOPKINS,MINNESOTA
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COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS -
December 31,2004
Capital Project Funds
Total
Municipal Non-major
Park State Aid Governmental
Improvements Construction Total Funds
ASSETS
Cash and investments $ 75,481 $ 2,014,285 $ 2,089,766 $ 11,205,742
Taxes receivable - 86,060
Special Assessments receivable 694,211
Accounts receivable 10,000 6,742 16,742 119,507
Rehabilitation loans receivable 385,398
Accrued interest receivable 463 12,438 12,901 68,644
Due from other funds - - 1,560,690 _
Due from other governments - 402,312 402,312 510,453
Advance to other funds - - 633,008
Long term loans receivable - 300,000
Restricted cash and investments - 49,032
Total Assets $ 85,944 $ 2,435,777 $ 2,521,721 $ 15,612,745
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 55 $ 16,135 $ 16,190 $ 319,125
Salaries payable - - - 13,114
Accrued interest payable 1,118
Due to other funds - - - 624,782
Due to other governments - - - 662
Unearned revenue - 46,187 46,187 1,152,126
Advance from other funds - - - 711,140
Total Liabilities 55 62,322 62,377 2,822,067
Fund balances:
Reserved for:
Restricted cash and investments - 49,000
Reserved for Rehab loans receivable - 385,398
Reserved for Tax Increment Districts - 3,258,885
Reserved for advance to other funds - - 633,008
Reserved for debt service - - 3,131,934
Unreserved:
Designated - 2,373,455 2,373,455 2,516,559
Undesignated 85,889 85,889 2,815,894
Total Fund Balances 85,889 2,373,455 2,459,344 12,790,678
Total Liabilities and Fund Balance $ 85,944 $ 2,435,777 $ 2,521,721 $ 15,612,745
72
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 31,2004
Special Revenue Funds
State Real Estate Hennepin
Chemical Economic Purchases County Art
Assessment Development &Sales CDBG Center
Revenues
Property tax $ - $ 814
Tax increment - - -
Special assessments - - -
Intergovernmental revenue 33,899 166,250 - 17,334 50,000
Fees, licenses and permits - - - - -
Charges for services - 3,700 - 222,293
Fines - - -
Investment earnings - 31,966 2,039 - (3,744)
Other - 19,990 -
Total Revenues 33,899 219,020 5,739 17,334 268,549
Expenditures
_ Current:
General government - - - -
Public safety 40,448 - - - -
Health and welfare - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - 337,854 - 58,348 -
Recreation - - - - 382,016
Capital outlay - - - 12,668
Debt Service:
Principal retirement
Interest and fiscal fees -
Total Expenditures 40,448 337,854 - 58,348 394,684
Excess(deficiency)of revenues over
(under)expenditures (6,549) (118,834) 5,739 (41,014) (126,135)
Other Financing Sources(Uses):
Transfers in - - - - 147,920
Transfers out - (61,000) - -
Total Other Financing Sources(Uses) - (61,000) - - 147,920
Net change in fund balances (6,549) (179,834) 5,739 (41,014) 21,785
Fund Balance(Deficit)-January 1 16,705 3,009,460 65,974 179,757 (1,043,467)
Fund Balance(Deficit)-December 31 $ 10,156 $ 2,829,626 $ 71,713 $ 138,743 $ (1,021,682)
73
CITY OF HOPKINS,MINNESOTA
2of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
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 1,123,830 373,571 19,089 - 43,105
Special assessments - - -
Intergovernmental revenue 16,794 - - -
Fees,licenses and permits - - - - --
Charges for services - - -
Fines - - -
Investment earnings 22,010 5,844 514 (201) 991
Other - - 5,550 - -
Total Revenues 1,162,634 379,415 25,153 (201) 44,096
Expenditures
Current:
General government - - - -
Public safety - - - -
Health and welfare - - - -
Highways and streets - - - - -
Urban redevelopment and housing 2,243 190,435 46 1,494 29,728
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement - - - -
Interest and fiscal fees - - - - -
Total Expenditures 2,243 190,435 46 1,494 29,728
Excess(deficiency)of revenues over
(under)expenditures 1,160,391 188,980 25,107 (1,695) 14,368
Other Financing Sources(Uses): _
Transfers in - - - -
Transfers out (1,255,000) (218,000) - - -
Total Other Financing Sources(Uses) (1,255,000) (218,000) - - -
Net change in fund balances (94,609) (29,020) 25,107 (1,695) 14,368
Fund Balance(Deficit)-January 1 1,048,916 192,931 (425,178) 653 22,402
Fund Balance(Deficit)-December 31 $ 954,307 $ 163,911 $ (400,071) $ (1,042) $ 36,770
74
CITY OF HOPKINS,MINNESOTA
3 of 8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
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 $ - $ - $ - $ - $ -
Tax increment 133,457 87,467 346,603 -
Special assessments - - - -
Intergovernmental revenue 12,367 - - - 93,990
Fees,licenses and permits - - - -
Charges for services - - - - 14,183
Fines - - - - -
Investment earnings 4,424 1,448 55,359 - -
Other - - 4,075
Total Revenues 150,248 88,915 406,037 - 108,173
Expenditures
Current:
General government - - - -
Public safety - - - - -
Health and welfare - - - - 122,500
Highways and streets - - - -
Urban redevelopment and housing 373 68,314 56,233 1,437
Recreation - - - -
Capital outlay - - 19,995 - -
Debt Service:
Principal retirement - - - -
Interest and fiscal fees - - - -
Total Expenditures 373 68,314 76,228 1,437 122,500
Excess(deficiency)of revenues over
(under)expenditures 149,875 20,601 329,809 (1,437) (14,327)
Other Financing Sources(Uses):
Transfers in - - - 15,648
Transfers out (133,000) - (188,000) -
Total Other Financing Sources(Uses) (133,000) - (188,000) - 15,648
Net change in fund balances 16,875 20,601 141,809 (1,437) 1,321
Fund Balance(Deficit)-January 1 185,351 38,623 2,333,646 - -
Fund Balance(Deficit)-December 31 $ 202,226 $ 59,224 $ 2,475,455 $ (1,437) $ 1,321
75
CITY OF HOPKINS,MINNESOTA
4of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
Special Revenue Funds
Depot
Housing Section 8 Coffee .�
Rehab Parking Housing Cable TV House Total
Revenues
Property tax $ $ - $ - $ $ - $ 814 `,
Tax increment - - - - 2,127,122
Special assessments - - - - -
Intergovernmental revenue 5,775 - 115,093 70,000 581,502
Fees,licenses and permits - - - 155,727 155,727
Charges for services - 48,037 - 15 187,246 475,474
Fines - 40,888 - 40,888
Investment earnings 22,690 7,025 2,372 5,952 158,689
Other 83 - - 17,500 47,198
Total Revenues 28,548 95,950 117,465 161,694 274,746 3,587,414
Expenditures y
Current:
General government - - 77,419 - 77,419
Public safety 66,891 - - 107,339 �..,
Health and welfare - 122,500
Highways and streets - 54,137 - - 54,137
Urban redevelopment and housing 88,395 - 102,767 - - 937,667
Recreation - - - - 231,332 613,348
Capital outlay - - 10,172 8,970 - 51,805
Debt Service:
Principal retirement - -
Interest and fiscal fees - - - - - -
Total Expenditures 88,395 121,028 112,939 86,389 231,332 1,964,215
r
Excess(deficiency)of revenues over
(under)expenditures (59,847) 4,526 75,305 43,414 1,648,277
Other Financing Sources(Uses):
Transfers in - - - - - 163,568
Transfers out - - - (86,920) - (1,941,920)
Total Other Financing Sources(Uses) - - (86,920) - (1,778,352)
Net change in fund balances (59,847) (25,078) 4,526 (11,615) 43,414 (155,153)
Fund Balance(Deficit)-January 1 1,020,094 292,593 100,509 333,180 (17,596) 7,354,553 ...
Fund Balance(Deficit)-December 31 $ 960,247 $ 267,515 $ 105,035 $ 321,565 $ 25,818 $ 7,199,400
76
CITY OF HOPKINS,MINNESOTA
5of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
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 - - 97,863 - -
Intergovernmental revenue - - -
Fees,licenses and permits - - -
Charges for services - - - - -
Fines - - "
Investment earnings 3,363 6,536 1,164 875 285
Other - - - -
Total Revenues 3,363 6,536 99,027 875 285
Expenditures
Current:
General government 50 129 28 17 6
Public safety - - -
Health and welfare - -
Highways and streets - - - -
Urban redevelopment and housing - - - -
Recreation - - - -
Capital outlay - "
Debt Service:
Principal retirement 135,620 650,000 95,000 60,000 -
Interest and fiscal fees 214,530 47,302 43,745 45,159 28,821
Total Expenditures 350,200 697,431 138,773 105,176 28,827
Excess(deficiency)of revenues over
(under)expenditures (346,837) (690,895) (39,746) (104,301) (28,542)
Other Financing Sources(Uses):
_ Transfers in 530,000 725,000 - 106,000 27,000
Transfers out - -
Total Other Financing Sources(Uses) 530,000 725,000 - 106,000 27,000
Net change in fund balances 183,163 34,105 (39,746) 1,699 (1,542)
Fund Balance(Deficit)-January 1 189,896 692,283 144,270 92,479 24,324
Fund Balance(Deficit)-December 31 $ 373,059 $ 726,388 $ 104,524 $ 94,178 $ 22,782
77
CITY OF HOPKINS,MINNESOTA
6of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
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 $ - $ 23,202 $ 58,480 $ 187,796 $ 51,290 _
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue - 2,643 7,833 25,307 7,110
Fees,licenses and permits - - - - - -
Charges for services - - -
Fines - - - -Investment earnings 2,274 1,644 2,043 1,263 1,082
Other - - - -
Total Revenues 2,274 27,489 68,356 214,366 59,482
Expenditures
Current:
General government 48 39 47 23 21
Public safety - - -
Health and welfare - - - -
Highways and streets - - - -
Urban redevelopment and housing - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement 140,000 80,000 140,000 160,000 75,000 _
Interest and fiscal fees 75,413 27,775 19,689 35,994 29,125
Total Expenditures 215,461 107,814 159,736 196,017 104,146
Excess(deficiency)of revenues over
(under)expenditures (213,187) (80,325) (91,380) 18,349 (44,664)
Other Financing Sources(Uses):
Transfers in 218,000 75,000 80,000 58,219
Transfers out - - - -
Total Other Financing Sources(Uses) 218,000 75,000 80,000 58,219
Net change in fund balances 4,813 (5,325) (11,380) 18,349 13,555
Fund Balance(Deficit)-January 1 213,184 134,561 189,781 156,772 97,492
Fund Balance(Deficit)-December 31 $ 217,997 $ 129,236 $ 178,401 $ 175,121 $ 111,047
78
CITY OF HOPKINS,MINNESOTA
7of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
Debt Service Funds
_ Tax HRA Lease HRA Lease
Increment B Revenue Revenue
Bonds of Bonds of Bonds of
_ 2002 2002 2003 Total
Revenues
Property tax $ - $ 589,403 $ $ 910,171
Tax increment - - "
Special assessments - - - 97,863
Intergovernmental revenue - 81,704 124,597
Fees,licenses and permits - - -
Charges for services - -
Fines - - -
Investment earnings 1,408 8,117 102 30,156
Other '
Total Revenues 1,408 679,224 102 1,162,787
Expenditures
Current:
General government 26 145 - 579
Public safety '
Health and welfare - - -
Highways and streets - -
Urban redevelopment and housing - - -
Recreation - - -
_ Capital outlay - - -
Debt Service:
Principal retirement 70,000 - - 1,605,620
Interest and fiscal fees 100,993 483,684 122,517 1,274,747
Total Expenditures 171,019 483,829 122,517 2,880,946
Excess(deficiency)of revenues over
(under)expenditures (169,611) 195,395 (122,415) (1,718,159)
Other Financing Sources(Uses):
Transfers in 188,000 189,000 235,000 2,431,219
Transfers out
Total Other Financing Sources(Uses) 188,000 189,000 235,000 2,431,219
Net change in fund balances 18,389 384,395 112,585 713,060
Fund Balance(Deficit)-January 1 134,927 348,905 - 2,418,874
Fund Balance(Deficit)-December 31 $ 153,316 $ 733,300 $ 112,585 $ 3,131,934
79
CITY OF HOPKINS,MINNESOTA
8of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES _
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2004
Capital Project Funds
Total
Municipal Non-major
Park State Aid Governmental
Improvements Construction Total Funds
Revenues
Property tax $ - $ - $ $ 910,985 _
Tax increment - - - 2,127,122
Special assessments - - - 97,863
Intergovernmental revenue - 308,662 308,662 1,014,761
Fees, licenses and permits - - - 155,727
Charges for services 39,600 - 39,600 515,074
Fines - - - 40,888
Investment earnings 1,994 52,772 54,766 243,611
Other 4,100 - 4,100 51,298
Total Revenues 45,694 361,434 407,128 5,157,329
Expenditures
Current:
General government 77,998
Public safety - - - 107,339
Health and welfare - - - 122,500
Highways and streets - - - 54,137
Urban redevelopment and housing - - - 937,667
Recreation - - - 613,348
Capital outlay 71,295 818,645 889,940 941,745
Debt Service:
Principal retirement - - - 1,605,620
Interest and fiscal fees - - - 1,274,747
Total Expenditures 71,295 818,645 889,940 5,735,101
Excess(deficiency)of revenues over
(under)expenditures (25,601) (457,211) (482,812) (577,772)
Other Financing Sources(Uses):
Transfers in - - - 2,594,787
Transfers out - - - (1,941,920)
Total Other Financing Sources(Uses) - - 652,867
Net change in fund balances (25,601) (457,211) (482,812) 75,095
Fund Balance(Deficit)-January 1 111,490 2,830,666 2,942,156 12,715,583
Fund Balance(Deficit)-December 31 $ 85,889 $ 2,373,455 $ 2,459,344 $ 12,790,678
80
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 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Intergovernmental revenue:
State grant $ 59,545 $ 33,899 $ (25,646)
Expenditures:
Salaries and employee benefits 28,100 18,904 9,196
Materials,supplies and services 31,445 21,544 9,901
Total Expenditures 59,545 40,448 19,097
Net change in fund balance - (6,549) (6,549)
Fund Balance-January 1 16,705 16,705 -
Fund Balance-December 31 $ 16,705 $ 10,156 $ (6,549)
81
CITY OF HOPKINS,MINNESOTA
ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2004
Variance with
final budget
Budget Amount positive _
Original Final Actual (negative)
Revenues:
General property taxes $ - $ - $ 814 $ 814 -
Intergovernmental:
Metropolitan grant - 166,250 166,250
Charges for services - - -
Investment earnings 35,000 35,000 31,966 (3,034)
Other 12,000 12,000 19,990 7,990
Total Revenues 47,000 213,250 219,020 5,770
Expenditures:
Salaries and employee benefits 181,125 181,125 137,023 44,102
Materials,supplies and services 95,826 262,076 238,331 23,745
Total 276,951 443,201 375,354 67,847
Less expenditures charged to other activities (37,500) (37,500) (37,500) -
Net 239,451 405,701 337,854 67,847
Other Financing Uses:
Transfer to Art Center Fund (61,000) (61,000) (61,000) -
Net change in fund balance (253,451) (253,451) (179,834) 73,617
Fund Balance-January 1 3,009,460 3,009,460 3,009,460 - _
Fund Balance-December 31 $ 2,756,009 $ 2,756,009 $ 2,829,626 $ 73,617
82
—' 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 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Charges for services $ 3,700 $ 3,700 $ -
Investment earnings 2,300 2,039 (261)
Total Revenues 6,000 5,739 (261)
Expenditures: - - -
Net change in fund balance 6,000 5,739 (261)
Fund Balance-January 1 65,974 65,974 -
Fund Balance-December 31 $ 71,974 $ 71,713 $ (26 1)
83
CITY OF HOPKINS,MINNESOTA
ART CENTER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2004
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
Intergovernmental:
State grant $ 50,000 $ 50,000 $ -
Charges for services 230,100 222,293 (7,807)
Interest earnings - (3,744) (3,744)
Total Revenues 280,100 268,549 (11,551)
Expenditures:
Salaries and employee benefits 265,002 264,516 486
Materials,supplies and services 106,970 117,500 (10,530)
Capital outlay 13,000 12,668 332
Total Expenditures 384,972 394,684 (9,712)
Other Financing Sources
Transfer from other funds 147,920 147,920 -
Net change in fund balance 43,048 21,785 (21,263)
Fund Balance-January 1 (1,043,467) (1,043,467) -
Fund Balance-December 31 $ (1,000,419) $ (1,021,682) $ (21,263)
84
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 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
_ Tax increment $ 1,065,000 $ 1,123,830 $ 58,830
Intergovernmenal
Market value aid credit 16,786 16,794 8
_ Investment earnings 21,000 22,010 1,010
Total Revenues 1,102,786 1,162,634 59,848
Expenditures:
Materials,supplies and services 5,500 2,243 3,257
Other Financing Uses:
Transfer to Bonds of 1992-Refunding (530,000) (530,000) -
Transfer to Bonds of 1993C-Refunding (725,000) (725,000) -
-- Total Other Financing Uses (1,255,000) (1,255,000)
Net change in fund balance (157,714) (94,609) 63,105
Fund Balance-January 1 1,048,916 1,048,916 -
Fund Balance-December 31 $ 891,202 $ 954,307 $ 63,105
85
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, 2004
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
Taxes:
Tax increment $ 395,000 $ 373,571 $ (21,429)
Investment earnings 7,000 5,844 (1,156)
Total Revenues 402,000 379,415 (22,585)
Expenditures:
Materials,supplies and services 249,835 190,435 59,400
Capital outlay:
Site improvements-R.L. Johnson - - -
Total Expenditures 249,835 190,435 59,400
Other Financing Uses _
Transfer to debt service, 1997-HRA (218,000) (218,000) -
Net change in fund balance (65,835) (29,020) 36,815
Fund Balance-January 1 192,931 192,931 -
Fund Balance-December 31 $ 127,096 $ 163,911 $ 36,815
86
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 $ 19,089 $ 5,589
Investment earnings 500 514 14
Other 5,024 5,550 526
19,024 25,153 6,129
Expenditures:
Materials,supplies and services 625 46 579
Net change in fund balance 18,399 25,107 6,708
Fund Balance(Deficit)-January 1 (425,178) (425,178) -
Fund Balance(Deficit)-December 31 $ (406,779) $ (400,071) $ 6,708
87
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 31,2004
Variance with
Original and final budget
Final positive —
Budget Actual (negative)
Revenues:
Investment earnings 50 (201) (251) —
Total Revenues 50 (201) (251)
Expenditures: —
Materials,supplies and services 16,255 1,494 14,761
Capital outlay: _
Site improvements - - -
Total Expenditures 16,255 1,494 14,761
Other Financing Uses:
Transfer to PIR fund (48,611) - 48,611
Net change in fund balance (64,816) (1,695) 63,121
Fund Balance-January 1 653 653 -
Fund Balance-December 31 $ (64,163) $ (1,042) $ 63,121
88
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, 2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
—" Taxes:
Tax increment $ 42,500 $ 43,105 $ 605
Investment earnings 550 991 441
Total Revenues 43,050 44,096 1,046
Expenditures:
Materials, supplies and services 30,032 29,728 304
Net change in fund balance 13,018 14,368 1,350
Fund Balance-January 1 22,402 22,402 -
Fund Balance-December 31 $ 35,420 $ 36,770 $ 1,350
89
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 31,2004
Variance with
Original and final budget
Final positive .._
Budget Actual (negative)
Revenues:
Taxes
Tax increment $ 119,000 $ 133,457 $ 14,457
Intergovernmenal
Market value aid credit 14,494 12,367 (2,127)
Investment earnings 4,600 4,424 (176)
Total Revenues 138,094 150,248 12,154
Expenditures
Materials,supplies and services 965 373 592 _
Other Financing Uses:
Transfer out for debt service (133,000) (133,000)
Net change in fund balance 4,129 16,875 12,746
Fund Balance-January 1 185,351 185,351 -
Fund Balance-December 31 $ 189,480 $ 202,226 $ 12,746
90
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 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax increment $ 87,000 $ 87,467 $ 467
Investment earnings 1,000 1,448 448
Total Revenues 88,000 88,915 915
Expenditures:
Materials,supplies and services 68,008 68,314 (306)
Net change in fund balance 19,992 20,601 609
Fund Balance-January 1 38,623 38,623 -
Fund Balance-December 31 $ 58,615 $ 59,224 $ 609
91
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 31,2004 _
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes: _
Tax Increments $ 350,000 $ 346,603 $ (3,397)
Investment earnings 35,000 55,359 20,359
Miscellaneous - 4,075 4,075 _
385,000 406,037 21,037
Expenditures:
Materials,supplies and services 111,847 56,233 55,614
Capital outlay:
Land - - -
Streets and Sidewalks 2,500,000 19,995 2,480,005
Site Improvements - - -
Total Expenditures 2,611,847 76,228 2,535,619
Other Financing Sources(Uses): _
Transfer out for debt service (188,000) (188,000) -
Net change in fund balance (2,414,847) 141,809 2,556,656 _.
Fund Balance-January 1 2,333,646 2,333,646 -
Fund Balance-December 31 $ (81,201) $ 2,475,455 $ 2,556,656
92
-- CITY OF HOPKINS,MINNESOTA
PARA-TRANSIT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Intergovernmental:
State grant(Para-Transit) $ 93,990 $ 93,990 $ -
Charges for services 20,500 14,183 (6,317)
Total Revenues 114,490 108,173 (6,317)
Expenditures:
Salaries and employee benefits 15,472 14,605 867
Materials,supplies and services 1145666 107,895 6,771
Total Expenditures 130,138 122,500 7,638
Other Financing Sources:
Transfer from the General Fund 15,648 15,648 -
Net change in fund balance - 1,321 1,321
Fund Balance-January 1 - - -
Fund Balance-December 31 $ - $ 1,321 $ 1,321
93
CITY OF HOPKINS,MINNESOTA
HOUSING REHAB SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2004
Variance with
Original and final budget
Final positive w
Budget Actual (negative)
Revenues:
Intergovernmental:
State grants $ - $ 5,775 $ 5,775
Investment earnings 32,000 22,690 (9,310)
Other 100 83 (17)
Total Revenues 32,100 28,548 (3,552)
Expenditures:
Salaries and employee benefits 50,366 50,180 186
Materials,supplies and services 31,229 38,215 (6,986)
Total Expenditures 81,595 88,395 (6,800)
Net change in fund balance (49,495) (59,847) (10,352)
Fund Balance-January 1 1,020,094 1,020,094 -
Fund Balance-December 31 $ 970,599 $ 960,247 $ (10,352)
94
CITY OF HOPKINS,MINNESOTA
PARKING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
'- Year Ended December 31,2004
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Court fines 40,000 40,000 40,888 888
Charges for services 52,600 52,600 48,037 (4,563)
Investment earnings 7,500 7,500 7,025 (475)
Total Revenues 100,100 100,100 95,950 (4,150)
Expenditures:
Salaries and employee benefits 75,461 75,461 63,612 11,849
Materials,supplies and services 57,663 68,663 57,416 11,247
Capital outlay:
Other improvements 15,000 - - -
Total Expenditures 148,124 144,124 121,028 23,096
Net change in fund balance (48,024) (44,024) (25,078) 18,946
Fund Balance-January 1 292,593 292,593 292,593 -
Fund Balance-December 31 $ 244,569 $ 248,569 $ 267,515 $ 18,946
95
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 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Intergovernmental: --
Federal-Section 8 $ 120,000 $ 115,093 $ (4,907)
Investment earnings 2,500 2,372 (128)
Total Revenues 122,500 117,465 (5,035)
Expenditures:
Salaries and employee benefits 82,434 78,402 4,032
Materials,supplies and services 24,661 24,365 296
Capital outlay 11,000 10,172 828 _
Total Expenditures 118,095 112,939 4,328
Net change in fund balance 4,405 4,526 121 _.
Fund Balance-January 1 100,509 100,509 -
Fund Balance-December 31 $ 104,914 $ 105,035 $ 121
96
CITY OF HOPKINS,MINNESOTA
CABLE TV SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2004
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Franchise fees $ 140,000 $ 155,727 $ 15,727
Charges for service - 15 15
Investment earnings 6,450 5,952 (498)
Total Revenues 146,450 161,694 15,244
Expenditures:
Salaries and employee benefits 12,496 19,553 (7,057)
Materials, supplies and services 78,309 57,866 20,443
Capital outlay - 8,970 (8,970)
Total Expenditures 90,805 86,389 4,416
Excess of revenues over expenditures 55,645 75,305 19,660
Other Financing Uses:
Transfer to Art Center Fund (86,920) (86,920) -
Net change in fund balance (31,275) (11,615) 19,660
Fund Balance-January 1 333,180 333,180 -
Fund Balance-December 31 $ 301,905 $ 321,565 $ 19,660
97
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 31,2004
Variance with
Original and final budget
Final positive _
Budget Actual (negative)
Revenues:
Intergovernmental: .—
State grant $ 54,000 $ 70,000 $ 16,000
Charges for services 144,800 187,246 42,446
Contributions 23,610 17,500 (6,110)
Total Revenues 222,410 274,746 52,336
Expenditures:
Salaries and employee benefits 125,109 137,661 (12,552)
Materials, supplies and services 95,185 93,671 1,514 _
Total Expenditures 220,294 231,332 (11,038)
Net change in fund balance 2,116 43,414 41,298 _
Fund Balance-January 1 (17,596) (17,596) -
Fund Balance-December 31 $ (15,480) $ 25,818 $ 41,298
98
CITY OF HOPKI NS, 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
99
CITY OF HOPKINS,MINNESOTA -
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
December 31,2004
Non Major Business-type Activities-Enterprise Funds
Nonmajor ._
Refuse Pavilion/ Housing Proprietary Funds
Utility Ice Arena Skate Park Authority Total
ASSETS
Current assets
Cash and investments $ 467,016 $ - $ - $ 231,515 $ 698,531
Accounts receivable 24 42,525 - 1,182 43,731
Accrued interest receivable 3,190 (1,799) - - 1,391 -
Due from other funds - - - -
Due from other governments - 38,000 - - 38,000
Loan Receivable - 246,445 - - 246,445 '-
Inventory 2,997 - - - 2,997
Prepaid expenses - - - 14,111 14,111
Total current assets 473,227 325,171 - 246,808 1,045,206 -
Noncurrent assets
Capital Assets:
Land - - - 163,300 163,300 -
Buildings and structures 302,727 3,171,263 30,382 3,078,862 6,583,234
Distribution system 2,584 52,726 - - 55,310
Machinery and equipment 625,460 90,622 98,873 29,564 844,519 -
Construction in progress - - 207,990 207,990
Less accumulated depreciation (355,958) (746,276) (54,739) (1,962,835) (3,119,808)
Total noncurrent assets 574,813 2,568,335 74,516 1,516,881 4,734,545 -
Total Assets 1,048,040 2,893,506 74,516 1,763,689 5,779,751
LIABILITIES
Current Liabilities:
Accounts payable 198,162 26,015 10 25,554 249,741
Salaries payable 2,930 3,179 6,109 -
Due to other funds - 294,570 21,730 - 316,300
Compensated absences payable 17,073 19,516 - 17,348 53,937
Unearned revenue - 3,109 - - 3,109 -
TotalCurrentLiabilities 218,165 346,389 21,740 42,902 629,196
Noncurrent Liabilities: -
Advance from other funds - 659,000 - - 659,000
Total Liabilities 218,165 1,005,389 21,740 42,902 1,288,196
NET ASSETS
Invested in capital assets,
net of related debt 574,813 2,568,335 74,516 1,516,881 4,734,545 -
Unrestricted 255,062 (680,218) (21,740) 203,906 (242,990)
Total net assets $ 829,875 $ 1,888,117 $ 52,776 $ 1,720,787 $ 4,491,555
100
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31,2004
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
Refuse Pavilion/ Skate Housing Proprietary Funds
Utility Ice Arena Park Authority Total
Operating revenues:
Charges for services $ 590,885 $ 352,416 $ - $ 234,014 $ 1,177,315
Other - 8,881 - 33,632 42,513
Total Operating Revenues 590,885 361,297 - 267,646 1,219,828
Operating expenses:
Cost of sales and service 562,020 281,998 310 235,982 1,080,310
Administration 92,741 9,867 1,159 55,762 159,529
Depreciation 32,122 75,502 42,587 133,280 283,491
Total Operating Expenses 686,883 367,367 44,056 425,024 1,523,330
Operating losses (95,998) (6,070) (44,056) (157,378) (303,502)
Nonoperating revenues(expenses):
Investment earnings 12,734 (2,610) - - 10,124
Intergovernmental grants 22,891 - - 209,798 232,689
Proceeds from sale of assets 975 - 975
Total nonoperating revenues
(expenses) 36,600 (2,610) - 209,798 243,788
Income(loss)before transfers (59,398) (8,680) (44,056) 52,420 (59,714)
Transfers in(out) (25,000) 18,760 - (6,240)
Change in net assets (84,398) 10,080 (44,056) 52,420 (65,954)
Total net assets-beginning 914,273 1,878,037 96,832 1,668,367 4,557,509
Total net assets-ending $ 829,875 $ 1,888,117 $ 52,776 $ 1,720,787 $ 4,491,555
101
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31,2004
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 $ 590,897 $ 317,441 $ - $ 266,837 $ 1,175,175
Internal activity-payments to other funds - -
Intemal activity-payments from other funds - 294,570 730 2,700 298,000
Payments to suppliers (168,671) (164,609) (1,467) (243,496) (578,243)
Payments to employees (227,313) (180,969) - (50,382) (458,664)
Payments for interfund services used (96,788) (12,520) - - (109,308)
Net cash provided by(used)by operating activities 98,125 253,913 (737) (24,341) 326,960
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 22,891 - - 209,798 232,689
Transfers(to)from other funds (25,000) 18,760 - - (6,240)
Net cash provided by noncapital and related financing activities (2,109) 18,760 - 209,798 226,449
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (215,131) - - - (215,131)
Construction of capital assets - (84,416) - (104,363) (188,779)
Proceeds from sale of capital assets 975 - - 975
Loan to Hockey Association - (246,445) - (246,445)
Advance from Equipment fund - 9,785 - 9,785
Net cash used by capital and related financing activities (214,156) (321,076) (104,363) (639,595)
Cash Flows From Investing Activities 11,159 (672) - 10,487
Net increase(decrease)in cash and investments (106,981) (49,075) (737) 81,094 (75,699)
Cash and Investments-January 1 573,997 49,075 737 150,421 774,230
Cash and Investments-December 31 $ 467,016 $ - $ - $ 231,515 $ 698,531
102
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS,(CONT.)
For the Year Ended December 31,2004
Reconciliation of operating loss to net
cash provided by(used)by operating activities:
Operating loss $ (95,998) $ (6,070) $ (44,056) $ (157,378) $ (303,502)
Adjustments to reconcile operating loss to net cash provided
by(used)by operating activities:
Depreciation expense 32,122 75,502 42,587 133,280 283,491
(Increase)decrease in:
Accounts receivable 12 (4,709) - (809) (5,506)
Due from other funds - - 2,700 2,700
Due from other governments - (38,000) - - (38,000)
Inventory (2,010) - - (2,010)
Prepaid expense - - - 4,597 4,597
Accounts,compensated absences and accrued interest payable 163,999 (69,342) 2 (6,731) 87,928
Due to other funds - 294,570 730 - 295,300
Unearned revenue - 1,962 - - 1,962
Net Cash Provided by(used)by Operating Activities $ 98,125 $ 253,913 $ (737) $ (24,341) $ 326,960
103
CITY OF HOPKINS, 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.
104
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
December 31,2004
Equipment Insurance Employee Totals
Replacement Risk Benefits 2004
ASSETS
Current assets:
Cash and investments $ 683,240 $ 138,540 $ 662,539 $ 1,484,319
Due from other governments 326,841 - - 326,841
Advance to other funds 659,000 - - 659,000
Accrued interest receivable 2,110 847 3,917 6,874
Total current assets 1,671,191 139,387 666,456 2,477,034
Property and equipment
Machinery and equipment 5,794,437 - - 5,794,437
_ Total property and equipment 5,794,437 - - 5,794,437
Less accumulated depreciation (3,564,191) - - (3,564,191)
Net property and equipment 2,230,246 - - 2,230,246
Total Assets 3,901,437 139,387 666,456 4,707,280
LIABILITIES
Current Liabilities:
Accounts payable 5,232 7,287 224 12,743
Compensated absences payable - - 655,455 655,455
Total Liabilities 5,232 7,287 655,679 668,198
NET ASSETS
Invested in capital assets,net of related debt 2,230,246 - - 2,230,246
Unrestricted 1,665,959 132,100 10,777 1,808,836
Total net assets $ 3,896,205 $ 132,100 $ 10,777 $ 4,039,082
105
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,AND —
CHANGES IN FUND NET ASSETS
Year Ended December 31,2004
Equipment Insurance Employee
Replacement Risk Benefits Total
Operating revenues:
Charges for services $ 257,130 $ 53,600 $ - $ 310,730
Operating expenses(excluding depreciation):
Materials,supplies and services 16,958 16,194 224 33,376
Operating income before depreciation 240,172 37,406 (224) 277,354
Depreciation expense 303,029 - - 303,029
Operating income (62,857) 37,406 (224) (25,675)
Nonoperating revenue:
Intergovernmental 326,841 - - 326,841
Investment earnings 44,456 2,495 (2,305) 44,646
Gain on sale of property and equipment 18,700 - - 18,700
Total nonoperating revenues 389,997 2,495 (2,305) 390,187
Net Income 327,140 39,901 (2,529) 364,512
Fund Equity:
Net assets-January 1 3,569,065 92,199 13,306 3,674,570
Net assets-December 31 $ 3,896,205 $ 132,100 $ 10,777 $ 4,039,082
106
CITY OF HOPKINS,MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2004
Equipment Insurance Employee
Replacement Risk Benefits Totals
Cash Flows from Operating Activities
Receipts from customers and users $ - $ 53,600 $ $ 53,600
Receipts from interfund services provided 257,130 - 101,112 358,242
Payments to suppliers (28,957) (8,859) - (37,816)
Payments for interfund services used (2,362) (48) 21,315 18,905
Net cash provided by operating activities 225,811 44,693 122,427 392,931
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (1,151,200) - - (1,151,200)
Proceeds from Sales of capital assets 18,700 - 18,700
Advance to Pavilion for Mezzanine construction (9,785) (9,785)
Net cash used by capital and related
financing activities (1,142,285) - (1,142,285)
Cash Flows From Investing Activities 46,070 1,907 7,084 55,061
Net increase(decrease)in cash and cash equivalents (870,404) 46,600 129,511 (694,293)
Cash and Cash Equivalents-January 1 1,553,644 91,940 533,028 2,178,612
Cash and Cash Equivalents-December 31 $ 683,240 $ 138,540 $ 662,539 $ 1,484,319
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities:
Operating income(loss) $ (62,857) $ 37,406 $ (224) $ (25,675)
Adjustments to reconcile operating income(loss)to
net cash provided by operating activities:
Depreciation expense 303,029 - - 303,029
(Increase)decrease in:
Accounts receivable - - -
Due from other funds - - 101,112 101,112
Accounts,compensated absences and accrued intereset
payable (14,361) 7,287 21,539 14,465
Net Cash Provided by Operating Activities $ 225,811 $ 44,693 $ 122,427 $ 392,931
107
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108
601
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VIOSINNIW 'SNDIdOH JO Alli
CITY OF HOPKINS,MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
Years 2003 to 2004
(Unaudited)
Highways Urban Interest on
Fiscal General Public Health and and Redevelopment Culture and Long-Term
Year* Government Safety 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 _
*Government-wide expenses are not available for years prior to 2003.
110
Table I
_ Storm Housing and
Water Sewer Sewer Refuse Pavilion/ Skate Redevelopment
Dili Dihilty UAWY D ikity Ice Arena Park Author i 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
111
Table II
CITY OF HOPKINS,MINNESOTA
GOVERNMENT-WIDE REVENUES
Years 2003 to 2004
(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 EaminQs 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
*Government-wide revenues are not available for years prior to 2003
112
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I ► ► i { I I I I I I I I I I I I I I
Table III
CITY OF HOPKINS, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Years 1995 Through 2004
(Amounts expressed in thousands)
(Unaudited)
Urban
Fiscal General Public Health and Highways Redevelopment Culture and Debt Capital
Year Government Safety Welfare and Streets and Housing Recreation Service Outlay Total
1995 1,794 2,572 - 1,559 1,707 127 - 2,335 10,094
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
113
Table IV
CITY OF HOPKINS, MINNESOTA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Years 1995 Through 2004
(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
1995 3,859 1,442 1,082 2,363 800 (1) 736 563 102 10,947
1996 4,364 1,412 354 3,018 797 (1) 932 352 83 11,312
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
(1) Includes use of money and property
(2) Includes Oaks of Mainstreet real estate sales.
114
Table V
CITY OF HOPKINS,MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Years 1995 Through 2004
(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
1995 3,975,854 3,903,806 98.2% (43,761) 3,860,045 0 97.1%
1996 4,178,410 4,085,963 97.7% 21,978 4,107,941 0 98.3%
1997 4,217,627 4,166,717 98.8% 29,181 4,195,898 0 99.5%
1998 4,232,961 4,203,506 99.3% 34,612 4,238,118 0 100.1%
1999 4,421,906 4,336,971 98.1% 20,552 4,357,523 0 98.5%
2000 4,672,756 4,611,366 98.7% 44,602 4,655,968 0 99.6%
2001 5,012,361 4,980,059 99.4% 83,221 5,063,280 0 101.0%
2002(a) 6,591,140 6,174,839 93.7% 40,356 6,215,195 188,266 97.2%
2003 (a) 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%
(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
115
Table VI
CITY OF HOPKINS, MINNESOTA
TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY
Levy Years 1995 Through 2004
(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
1995 15,350 602,136 278 6,044 15,628 608,180 2.6
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 1,418,158 1.2
116
Table VII
CITY OF HOPKINS, MINNESOTA
PROPERTY TAX RATES -
DIRECT AND OVERLAPPING GOVERNMENTS
Years 1995 Through 2004
(Unaudited)
Payable
Fiscal Metro
Year 0-ty- School Coun Council Other 1 Total
1995 27.19 75.08 37.45 6.36 2.33 148.41
1996 27.65 61.88 35.52 4.93 3.05 133.03
1997 30.46 61.06 38.39 5.65 2.50 138.06
1998 32.44 58.94 40.99 6.04 3.35 141.76
1999 32.19 56.56 39.66 6.04 3.04 137.49
2000 31.13 44.22 37.62 5.82 2.31 121.74
2001 54.79 15.03 50.49 3.53 5.16 128.94
2002 56.10 20.59 50.61 3.83 6.01 137.14
2003 56.66 22.20 47.32 3.50 5.26 134.94
2004 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. Also included in the "other"
column is the Vo-Tech School rate which is dropped after 1995. Beginning in
1996 the County Park tax rate is added.
117
Table VIII
CITY OF HOPKINS, MINNESOTA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Years 1995 Through 2004
(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
1995 555,611 506,417 91.2 15,839 111,438 406,675 2,535,709
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
118
1 I I I I I I I I I ( I I I I I I I I
I I I I I 1 I 1 I I I I I i 1 1 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 1995 Through 2004
(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 W Disparities Debt 2 on Hand/Escrowed Housing Fees Assessments Debt Value Capita
1995 16,534 12,556,761 14,605,143 932,467 3,656,600 2,647,147 7,368,929 58.68% 446
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 3,789,322 10,900,000 2,306,509 16,356,605 111.60% 927
(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.
(a) excludes Oaks of Mainstreet debt to be paid from real estate sales.
119
CITY OF HOPKINS, MINNESOTA Table X
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2004
(Unaudited)
MARKET VALUE $ 1,280,069,000 * —
DEBT LIMIT 2% OF MARKET VALUE(Note 8) $ 25,601,380
TOTAL BONDED DEBT $ 33,352,436 —
DEDUCTIONS (Note B):
Tax Increment Bonds $ 5,677,436 —
Revenue Bonds 5,270,000
Housing Improvement Bonds 5,630,000
Special Assessment Bonds 1,980,000 —
18,557,436
Amount Available in Debt Service Funds 3,789,322
Total Deductions 22,346,758
TOTAL DEBT APPLICABLE TO DEBT LIMIT 11,005,678
LEGAL DEBT MARGIN $ 14,595,702
Note(A):
M.S.S. Section 4753.53 (Limit on Net Debt)
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75,no municipality
...shall incur or be subject to net debt in excess of two percent of the market value of taxable property in
the municipality."
Note(B):
M.S.S. Section 475.51 Definitions:
"Subdivision 4. "Net debt" means the amount remaining after deducting from its gross debt the amount
of current revenues which are applicable within the current fiscal year to the payment of any debt and
the aggregate of the principal of the following:
(1)Obligations issued for improvements which are payable wholly or partly from the proceeds of special
assessments levied upon property specially benefited thereby...
(2) Warrants or orders having no definite or fixed maturity. —
(3)Obligations payable wholly from the income from revenue producing conveniences.
(4)Obligations issued to create or maintain a permanent improvement revolving fund.
(5)Obligations issued for the acquisition, and betterment of public water work systems...or for any other —
public convenience from which a revenue is or may be derived.
(6)Amount of all money and the face value of all securities held as a debt service fund for the extinguish-
ment of obligations other than those deductible under this subdivision. --
(7)All other obligations which under the provisions of law authorizing their issuance are not to be included
in computing the net debt of the municipality.
"Valuation before effect of"fiscal disparity" legislation; Minnesota laws 1971, Chapter 24. See Table VI.
120
Table XI
CITY OF HOPKINS, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31,2004
(Unaudited)
Net General Percentage
Obligation Applicable City Share
Debt 1 to CAY of Debt
Direct Debt
City of Hopkins $ 4,913,175 100.00% $ 4,913,175
Overlapping Debt
Hennepin County 351,089,497 1.34 4,704,599
Independent School District#270 (Hopkins) 88,625,451 18.08 16,023,482
Independent School District#283 56,524,752 0.43 243,056
Hennepin Suburban Park District 34,250,858 1.75 599,390
Metropolitan Council 141,939,612 0.61 865,832
Hennepin Regional RR Authority 47,439,917 1.34 635,695
Total Overlapping Debt 23,072,054
Total Direct and Overlapping Debt $ 27,985,229
Direct Overlapping Total
Debt Ratios Debt Debt Debt
Ratio of Debt Per Capita(17,653 Population) $278 $1,307 $1,585
Ratio of Debt to Tax Capacity Valuation
(after fiscal disparities) of$14,655,800(2) 33.52% 157.43% 190.95%
Ratio of Debt to Estimated Market Valuation
of$1,418,158,000 0.35% 1.63% 1.97%
(1)Excludes Revenue, Special Assessment and HRA Lease Revenue Bonds.
(2)Tax Capacity Values are based on payable 2004
Source: County Auditor
-- 121
Table XII
CITY OF HOPKINS,MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
Years 1995 Through 2004
(Unaudited)
Total Percentage
Total General of Debt
Debt Governmenal to General
Year Principal Interest Service Expenditures Expenditures
1995 340,000 231,467 571,467 11,513,652 5 _
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 (2) 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
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.
(2)Includes refunded debt in the amount of$2,110,000.
122
Table XIII
CITY OF HOPKINS, MINNESOTA
REVENUE BOND COVERAGE
WATER AND STORM SEWER REVENUE BONDS
Years 1995 Through 2004
(Unaudited)
Net
Fiscal Gross Operating Revenue Debt Service Coverage
Year Revenue Expenses (1) Available Principal Interest Total Ratio
1995 517,029 71,911 445,118 110,000 124,825 234,825 1.90 to 1
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
(1) Excludes depreciation and debt expense.
123
Table XIV
CITY OF HOPKINS, MINNESOTA
DEMOGRAPHIC STATISTICS
Year 1995 Through 2004 —
(Unaudited)
(2) (3)
Fiscal (1) School %Unemployment —
Year Population Enrollment Rate*
1995 16,534 7,942 2.9%
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%
Sources:
(1)Metropolitan Council
(2) School districts within Hopkins
(3)Minnesota Department of Labor and Industry
*Hennepin County
124
Table XV
CITY OF HOPKINS, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
Years 1995 Through 2004
(Amounts expressed in thousands)
(Unaudited)
(1) (1)
Commercial Residential (2)
Construction Construction Property Value
Fiscal Number of
Year Value Units Value Commercial Residential Nontaxable
1995 3,567 289 11,082 159,540 442,910 78,897
1996 12,499 344 5,893 163,722 459,066 78,897
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
Sources:
(1)City Community Services Department
(2)County Assessor's Office
125
Table XVI
CITY OF HOPKINS, MINNESOTA
PRINCIPAL TAXPAYERS
December 31,2004 —
(Unaudited)
Amount of
Percentage Estimated
Tax of Total Tax Tax City _
Taxpayer Tyne of Business Capaci1y Capacity Receives
1. Super Valu Grocery Warehouses 1,038,000 6.17% $ 375,949
2. St. Therese Apartments/Assisted Living 318,125 1.89% 157,392
3. Duke Realty Office/Warehouses 292,500 1.74% 105,939
4. Ramsgate Apartments Apartments 235,413 1.40% 116,471
5. Auburn North Townhouses 150,663 0.90% 74,541 —
6. Greenfield(Phase I) Apartments 143,288 0.85% 70,892
7. Westside Village Apartments 131,178 0.78% 64,688
8. Greenfield(Phase lI) Apartments 129,663 0.77% 64,151 —
9. Rosewood West Apartments 124,138 0.74% 61,417
10. Creekwood Estates Apartments 120,588 0.72% 59,661
11. Knollwood Towers West Apartments 112,538 0.67% 55,678
12. Atlas Cold Storage Warehouse 110,490 0.66% 40,407
13. Hopkins Plaza Apartments Apartments 107,852 0.64% 53,360
14. Brentwood Apartments/Townhomes 100,213 0.60% 49,580 —
15. Hopkins Business Center Bank/Office 98,450 0.59% 35,657
16. Plantation Apartments Apartments 94,413 0.56% 46,711
17. Oak Ridge Country Club Golf Course 94,230 0.56% 34,461 —
18. Planned Inv 97-1 Hopkins L Bank/Office 91,250 0.54% 33,371
19. Hopkins Village Apartment:Apartments 87,867 0.52% 43,313
20. Gateway Foods Office/Warehouse 85,250 0.51% 31,177 —
Total 3,666,109 21.81% $ 1,574,816
Total City 2004/2005 tax capacity= 16,811,416 100.00%
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 2004, not including —
fiscal disparities and tax increment adjustments.
3)The estimated tax is based on the tax rates for payable 2005.
126
Table XVII
CITY OF HOPKINS, MINNESOTA
MISCELLANEOUS STATISTICAL FACTS -CONTINUED
December 31, 2004
(Unaudited)
Fire Protection:
Number of Stations I
Number of Employees-Volunteer 36
Police Protection:
Number of Stations I
Number of Employees 41
Parks:
City Parks 12
Playgrounds I
Skating Rinks 18
Employees:
Regular 104
Part Time 7
Elections:
Registered Voters - last general election 11,518
Number of votes cast last general election 8,880
Election day registrations 2,298
Percentage of registered voters voting 77%
Population:
_ 1920 3,055
1930 3,834
1940 4,100
1950 7,595
1960 11,380
1970 (census) 13,395
1980(census) 15,336
1991 (census) 16,534
1992 16,534
1993 16,534
_ 1994 16,534
1995 16,534
1996 16,534
1997 16,665
1998 16,559
1999 16,887
2000 17,145
2001 17,145
2002 17,250
2003 17,559
2004 17,643
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