2003 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 , 2003
DEPARTMENT OF FINANCE
Lori Yager, 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, 2003
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 Net Assets - Proprietary Funds 39
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds 40
Statement of Cash Flows - Proprietary Funds 41
Statement of Fiduciary Net Assets - Fiduciary Fund 43
Notes to Financial Statements 44
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds 66
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances -Nonmajor Governmental Funds 74
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2003
Page
Schedules of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 82
Economic Development 83
Real Estate Purchases and Sales 84 —
Para-Transit 85
Housing Rehab 86
Parking 87 —
Section 8 Housing 88
Cable TV 89
Depot Coffee House 90 —
Art Center 91
Tax Increment 1.1 - Downtown 92
Tax Increment 1.2 - Entertainment Center 93 _
Tax Increment 2.1 - R.L. Johnson Company 94
Tax Increment 2.6 - Sonoma Project 95
Tax Increment 2.7 - Thermotech 96 _
Tax Increment 2.8 - Diamond Labs 97
Tax Increment 2.9 - Oaks of Mainstreet 98
Tax Increment 2.10 - Hopkins Business District 99
Tax Increment 2.11 - SuperValu 100 —
Combining Statement of Net Assets -Nonmajor Enterprise Funds 102
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets - Nonmajor Enterprise Funds 103 —
Combining Statement of Cash Flows - Non-major Enterprise Funds 104
Combining Statement of Net Assets - Internal Service Funds 107
Combining Statement of Revenues, Expenses, and Changes in —
Fund Net Assets - Internal Service Funds 108
Combining Statement of Cash Flows - Internal Service Funds 109
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2003
PaRe
STATISTICAL SECTION
Government-wide information:
Government-wide Expenses by Function 112
Government-wide Revenues 114
Fund Information:
_ General Governmental Expenditures by Function 115
General Governmental Revenues by Source 116
Property Tax Levies and Collections 117
Assessed Value/Tax Capacity Value and Market Value
of All Taxable Property 118
Property Tax Rates - Direct and Overlapping Governments 119
Special Assessments Billings and Collections 120
Ratio of Net Bonded Debt to Assessed Value/Tax
Capacity Value and Net Bonded Debt Per Capita 121
Computation of Legal Debt Margin 122
Computation of Direct and Overlapping Debt
Including Debt Ratios 123
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures 124
Revenue Bond Coverage - Water and Storm Sewer
Revenue Bonds 125
Demographic Statistics 126
Construction and Property Value 127
Principal Taxpayers 128
Miscellaneous Statistical Facts 129
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City of 7fopkzns
1010 First Street South •Hopkins, MN 55343-7573 • Phone:952-935-8474 • FaX. 952-935-1834
Web address: www.hopktnsmn.com
June 23, 2004
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, 2003 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, 2003, 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 form rendering an unqualified opinion that the City of Hopkins financial statements
for the fiscal year ended December 31, 2003, 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 4 Educate 4 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 Council/Manager form of
government. The governing council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and hiring the government's manager and the —
government's attorney. The government's manager is responsible for carrying out the policies and
ordinances of the government, for overseeing day-to-day operations of the government and for
appointing the heads of the government's departments. —
The report includes all funds and account groups of the City, including the city's Housing and
Redevelopment Authority (HRA). The City provides a full range of services including general
government, public safety, streets and highways, urban redevelopment and housing, parks and
recreation, and health and human services. In addition to general municipal activities, the City
provides water, sewer, storm sewer and refuse services. Low income rental housing is a function of —
the HRA. The Hopkins Fire Relief Association has not met the established criteria for inclusion in
the reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and control.
All departments of the City of Hopkins are required to submit requests for appropriation to the _
finance director by August of each year. The finance director uses these requests as the starting
point for developing a proposed budget. The finance director then presents this proposed budget to
the council for review prior to September 15th. The council is required to hold public hearings on —
the proposed budget and to adopt a final budget 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 82-100.
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.
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:
Communily 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 2003 was $20.7 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 2003 include the following:
Activi Valuation
— Commercial Additions/Alterations:
Market Place Lofts $ 11,70,000
Walgrens $ 1,800,000
Walser addition $ 1,400,000
St. Therese $ 1,700,000
Nine Mile Cove $ 6,000,000
Regency Residential Development $11,400,000
Alient Tech Center $ 1,100,000
5
Efforts are being made for continued development and growth for 2004 and beyond. It is
anticipated that approximately $102,510,000 of construction will also take place in the City of —
Hopkins during 2004/2005.
Some anticipated projects during this period include the following: _
Project Valuation
Blake School $ 2,700,000 —
Hopkins House $15,000,000
North Annex Redevelopment $40,000,000
Excelsior Boulevard Reconstruction $10,000,000 —
Public Works and Fire Facility $10,760,000
Police Facility remodel $ 3,050,000
Oakridge Country Club $12,000,000
Oakridge Town Homes $ 9,000,000
Knox property redevelopment $ 8,500,000
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 2004, projects to be constructed include the redevelopment of the eastside of downtown, the —
redevelopment of the redevelopment of the Knox property and the public works, fire station and
police facilities remodeling. 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 11th 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 2004 and 2005.
Major Initiatives. For 2003, the staff, following specific directives of the council and the manager,
have 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 2003 we accomplished our annual street repair and improvements, at a cost of approximately —
$2,032,000. The projects included replacing infrastructure, roadway surface, curb and gutters,
parking lot surfaces and alley reconstruction. The city began construction of its public works and _
fire station facility projects in 2003. The water department completed its conversion to a radio read
system for residential properties. The next step is to convert the larger commercial meters to a radio
read system. Storm Sewer reconstruction projects totaling $254,000, were completed in 2003. —
6 —
— Major redevelopment of a section of the east end of downtown between 7th and 81h Avenues was
completed in 2003. The redevelopment is called "Market Place Lofts" and consists of a
combination of residential condominiums above retail space. The project is a huge success with the
residential values ranging from $180,000 to $400,000 per unit. Another area of redevelopment is
also on the east side of town in an area that has light manufacturing and residential. New single and
multiple family residential properties were being built in 2002 and completed in 2003. This
— redevelopment project is also a huge success,turning an old parking lot into valuable property.
The city is also in the process of building a new fire station, replacing a public works storage facility
— and remodeling the old fire station to provide more space for the police department. These
improvements to facilities will provide safer and healthier work environments for city employee,
_ extend the life of the equipment used by these departments and meet federal and state standards for
witness and prisoner handling.
— 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
2004-2005.
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
2003. Cash and investment balances at year-end totaled $21,243,283, 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 2003 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
7
cash concept provides for investing greater amounts of money at more favorable rates. Interest
earnings are then allocated on a monthly basis to the participating funds. —
The City's primary investment policy goal is to minimize investment market risks while realizing a
competitive yield on its portfolio. The classification of the category of credit risk is shown in Note —
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 29%. During 2003, the City of —
Hopkins earned $416,726 as compared to 2002 earnings of $721,791. The reduced earnings are
attributed to the lower yields. The average yield on investments was 1.7%.
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, 2002. 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, —
gtnes A. Genellie Loci K. `ager
y 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, 2002
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.
NIM SUM �
g �
°ANA°" o President
- 6 MPPORtigN `�
5�3L
�MCAi9
Executive Director
9
CITIZENS
Boards & CITY
Commissions COUNCIL City Attorney
Administrative City Manager ---- MIS
Services
City of
Minnetonka
Community Planning &
Services Finance Economic Fire Police FPublic Works1
Recreation
Development
• Assessing Economic Fire & Medical Patrol Building Maint. &
• City Clerk Accounting Development Response Investigation Equipment
Elections Payroll Housing Prevention Communication Services
• Inspections 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, 2003
CITY OFFICIALS
December 31, 2003
CITY COUNCIL
Term
Expires
Eugene Maxwell, Mayor 12-31-03
— Bruce Rowan Councilmember 12-31-05
Diane Johnson Councilmember 12-31-03
Karen Jensen Councilmember . 12-31-03
Rick Brausen Councilmember 12-31-05
CITY MANAGER
Steven C. Mielke
— FINANCE DIRECTOR
Lori Yager
11
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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, 2003, 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 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
p 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, 2003, and the respective
changes in financial position and cash flows, where applicable, thereof and the respective budgetary
comparison for the general fund for the year then ended in conformity with accounting principles generally
.� accepted in the United States of America.
As described in note 1 to the basic financial statements, the City adopted the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements— and Management's
Discussion and Analysis—for State and Local Governments; Statement No. 37,Basic Financial Statements
—and Management's Discussion and Analysis—for State and Local Governments: Omnibus; Statement No.
38, Certain Financial Statement Note Disclosures•, and Interpretation No. 6,Recognition and Measurement
of Certain Liabilities and Expenditures in Governmental Fund Financial Statements,as of January 1,2003.
The management's discussion and analysis on pages 15 through 26 and the schedule of funding progress in
._ footnote 9.2 on page 62 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.
13
Minneapolis Office
... Celebrating
fcCr ,1
KPMG LLP,a U.S.limited liability partnership,is the U.S.
member firm of KPMG International,a Swiss cooperative.
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
additional analysis and are not a required part of the basic financial statements. The combining and
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 23,2004 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 grants. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in conjunction with this
report in considering the results of our audit.
June 23,2004
14
City of Hopkins
Management's Discussion and Anal
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, 2003. 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 $55 million. Of this amount,
(unrestricted net assets), $25 million may be used to meet the City's ongoing obligations to
citizens and creditors.
• The City's total net assets increased by $3 million.
• As of the close of the current fiscal year, the City of Hopkins governmental funds reported
combined ending fund balances of$25 million a decrease of$4 million in comparison with
the prior year. Approximately $9 million of fund balance is available for spending at the
City's discretion (unreserved fund balance).
• As of December 31, 2003, unreserved fund balance for the General Fund was $3 million, or
42%of total general fund expenditures.
• The City of Hopkins total debt increased by $2 million (6 percent) during the current fiscal
year. The key factors in this increase were the issuance of$3 million in Housing and
Redevelopment Authority Lease Revenue Bonds and $1 million in Storm Sewer Revenue
Bonds.
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
15
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). _
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 three categories: governmental funds, proprietary funds, and fiduciary 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-one 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, 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,
16 —
aggregated presentation. Individual fund data for each of these nonmajor governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special
revenue funds except for the community development block grant fund. The budgetary comparison
statement has been provided for the general fund and schedules are provided for other funds to
demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 3 0-3 8 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 nonmajor 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 39-42 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
_ outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of Hopkins
own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on page 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 44-63 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor proprietary funds and internal service funds are presented
17
immediately following the notes to the financial statements. Combining and individual fund
statements and schedules can be found on pages 66-109 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a governments financial
position. In the case of the City of Hopkins, assets exceeded liabilities by $54,784,812 at the close
of the most recent fiscal year. _
Approximately one half (53%) 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.
In future years,when prior year information is available a comparative analysis of government-wide
data will be presented.
City of Hopkins Net Assets
December 31, 2003
Governmental Business-type
Activities Activities Total —
Assets
Current and other assets 42,256,027 3,870,212 46,126,239 _
Capital assets 29,333,962 19,135,790 48,469,752
Total assets 71,589,989 23,006,002 94,595,991
Liabilities
Other liabilities 4,071,586 998,280 5,069,866
Long-term liabilities outstanding 29,356,078 5,385,235 34,741,313
Total liabilities 33,427,664 6,383,515 39,811,179
Net Assets —
Invested in capital assets, net of related debt 15,459,174 13,425,790 28,884,964
Restricted 287,418 - 287,418 —
Unrestricted 22,415,733 3,196,697 25,612,430
Total net assets $ 38,162,325 $ 16,622,487 $ 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 _
($25,612,430) 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
18 —
and business-type activities. The City's net assets increased by $2,607,841 during the current fiscal
year.
Governmental activities. Governmental activities increased the City of Hopkins net assets by
$2,363,234, thereby accounting for approximately 60 percent of the total growth in the net assets of
the City of Hopkins. Key elements of this increase are as follows:
City of Hopkins Changes in Net Assets
For the Year Ended December 31, 2003
Governmental Business-type
Activities Activities Total
Revenues:
Program revenues:
Charges for services 2,864,135 4,158,141 7,022,276
Operating grants and contributions 1,394,761 304,350 1,699,111
Capital grants and contributions 764,138 98,873 863,011
— General revenues:
Property taxes 6,877,331 - 6,877,331
Tax increments 2,214,833 - 2,214,833
Grants and contributions not restricted 691,438 - 691,438
Investment earnings 327,959 88,767 416,726
Total revenues 15,134,595 4,650,131 19,784,726
Expenses:
General Government 1,411,159 - 1,411,159
Public Safety 4,477,224 - 4,477,224
Highways and Streets 2,229,671 - 2,229,671
_ Urban Redevelopment and Housing 1,596,395 - 1,596,395
Culture and recreation 1,220,030 - 1,220,030
Health and welfare 185,893 - 185,893
Interest on long-term debt 1,650,989 - 1,650,989
Water - 1,075,399 1,075,399
Sewer - 1,459,743 1,459,743
Refuse - 654,721 654,721
Storm Sewer - 409,282 409,282
Pavilion/Ice Arena - 339,511 339,511
Skate Park - 18,199 18,199
Housing Authority - 448,669 448,669
Total expenses 12,771,361 4,405,524 17,176,885
Increase in net assets 2,363,234 244,607 2,607,841
Net assets 1/1/2003 35,799,091 16,377,880 52,176,971
Net assets 12/31/2003 $ 38,162,325 $ 16,622,487 $ 54,784,812
19
Property taxes increased in 2003 as a result of new debt service levies and reduced aids from the
state.
Expenses and Program Revenues-Governmental Activities o Program
revenues ...
■Expenses
$5,000,000
y > p
$4,000,000
iy-
$3,000,000 _ !
$2,000,000 ' F,
r
I i
$1,000,000 - — ---- _ —i
� ;.
$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
Grants and contributions Investment earnings
not restricted 2%
5%
Charges for services
{,o 19%
Tax increments s
15%
Operating grants and
" contributions
9%
Capital grants and
contributions
5%
Property taxes
45%
20
Business-type activities. Business-type activities experienced no significant changes in net assets.
Expenses and Program Revenues-Business-type Activities
$1,500,000
5
$1,250,000 - ----
e
$1,000,000 --
0 Program revenuesN
Expenses
$750,000 --- ------— ------ --- -- - --- - -?
$500,000
3
$250,000 .< — --- -- ---- ' -'
$0
Water Sewer Refuse Storm Pavilion/Ice Skate Park Housing
Sewer Arena Authority
Revenues by Source-Business-type Activities
Investment earnings
Capital grants and 2%
contributions
Operating grants and 2%
contributions
7%
Charges for services
89%
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$24,846,109, a decrease of$4,117,673 in comparison with the prior year.
Approximately one third of fund balance ($8,930,005)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 $3,230,283, while total fund balance reached _
$3,787,911. 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 43 percent of total general fund expenditures, while total fund balance _
represents approximately 49 percent of that same amount.
The fund balance of the City of Hopkins general fund decreased by ($147,896) during the current _
fiscal year. The key factor in the decrease is the restatement of general fund beginning fund balance
to reflect implementation of the employee benefits internal service fund to comply with GASB 34
implementation requirements. In the general fund there was a decrease in total general fund —
expenditures of $427,900. This decrease was accomplished through early retirements, postponed
capital purchases and delayed hiring of open positions.
The permanent improvement revolving fund has a total fund balance of$1,163,258, 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 $18,911. —
The capital improvement fund has a total fund balance of$6,500,016, 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 $3,804,607.
The 1997 G.O. Housing bond fund has a total fund balance of$173,711, all of which is reserved for
the payment of debt service. The fund balance increased approximately seven percent ($11,514). _
22
— The 1999A Taxable Housing Improvement bond fund has a total fund balance of$163,206, all of
which is reserved for the payment of debt service. The fund balance increased approximately ten
percent ($14,286).
The 1999B Taxable Housing Improvement bond fund has a total fund balance of $289,555, all of
which is reserved for the payment of debt service. The fund balance increased approximately five
percent ($14,614).
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 $1,115,868. The
unrestricted net assets are used to offset operating losses and pay for infrastructure improvements.
The decline in net assets amounted to ($108,010).
Unrestricted net assets of the Sewer fund at the end of the year amounted to $1,074,966. The
unrestricted net assets are used to offset operating losses and pay for infrastructure improvements.
— The decline in net assets amounted to ($108,930). Revenues fluctuate annually depending also on
water usage. Expenses stay fairly constant.
Unrestricted net assets of the Storm Sewer fund at the end of the year amounted to $1,062,480. The
unrestricted net assets are used to pay for infrastructure improvements. The growth in net assets
amounted to $281,085. 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 decrease of $130,397 in ending fund balance. The reason for the amendments was a
— decision by the City council to partially reduce expenditures to partially offset a cut in state aids,
which had been budgeted as revenue but was not being appropriated to local governments. The
budget changes can be summarized as follows:
• Net decrease of$554,522 in revenues.
— • Net decrease of$229,120 in expenditures for general government activities.
• Net decrease of$163,628 in expenditures for public safety.
• Net decrease of$1,542 in expenditures for health and welfare.
• Net decrease of$186,194 in expenditures for streets and highways.
• Net increase of$6,359 in expenditures for culture and recreation.
• Net increase of$150,000 in expenditures for transfers out.
During the year revenues exceeded budgetary estimates and expenditures were less than budgetary
estimates, eliminating the need to draw upon existing fund balance. There were no significant
budget to actual variances.
23
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, 2003, amounts to $48,469,752 (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 began on a new fire station and a public works storage facility. Construction
was also underway on the County Road 3 intersection. Construction in progress as of the —
close of the fiscal year had reached $9,074,136.
• A variety of street construction projects and systems for existing streets were completed in
the current fiscal year at a cost of$977,991. —
• Land was purchased to facilitate the County Road 3 intersection construction at a cost of
$107,339.
• Various building, infrastructure and improvements were completed in the current fiscal year
at a cost of$662,457.
City of Hopkins Capital Assets
(net of depreciation)
Governmental activities Business-type activities Total —
2003 2003 2003
Land $ 5,772,023 $ 205,697 $ 5,977,720
Buildings 4,156,101 3,238,395 7,394,496 —
Infrastructure 8,226,858 10,339,247 18,566,105
Improvements 752,966 3,519,895 4,272,861
Vehicles 717,658 221,442 939,100 _
Equipment 1,221,316 335,100 1,556,416
Construction in progress 8,487,040 1,276,014 9,763,054
Total $29,333,962 $ 19,135,790 $48,469,752
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 54-56
of this report.
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of$35,573,056. Of this amount, $13,810,000 comprises housing and redevelopment _
authority lease revenue debt, $6,733,056 comprises tax increment redevelopment debt, $3,420,000
comprises general obligation and special assessment debt, all of which is backed by the full faith
and credit of the government. Another $5,900,000 is special fees debt for which the government is _
liable in the event of default by the property owners subject to the fees. The remainder of the City
of Hopkins debt, $5,710,000, represents bonds secured solely by specified revenue sources (i.e.,
revenue bonds). _
24 —
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
Governmental activities Business-type activities Total
_ 2003 2003 2003
HRA lease revenue bonds $ 13,810,000 $ - $ 13,810,000
G.O. Tax increment bonds 6,733,056 - 6,733,056
G.O. Housing fee bonds 5,900,000 - 5,900,000
G.O. Redevelopment bonds 1,145,000 - 1,145,000
G.O. Special assessment bonds 2,275,000 - 2,275,000
Revenue bonds - 5,710,000 5,710,000
Total $29,863,056 $5,710,000 $ 35,573,056
The City of Hopkins total debt increased by $2,271,862, (6 percent) during the current fiscal year.
— The increase was from two new bond issues in 2003 which is related to $3,050,000 in HRA lease
revenue bonds for the police remodeling and $1,265,000 in storm sewer revenue bonds for storm
sewer construction costs.
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 2003. At December 31, 2003, the debt limit for the
City is $21,331,386. Of the total debt, $11,929,471 of general obligation and revenue bonds is
applicable to the limit. The legal debt margin is $9,401,915.
— The City of Hopkins maintains a "AA-" rating from Standard & Poor's and a "Al" rating from
Moodys's.
Additional information on the City of Hopkins long-term debt can be found in note 8 on pages 58-
60 of this report.
Economic Factors and Next Year's Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2004 budget.
Utility charges were to be held constant. Tax rates were increasing substantially due to the new debt
_ for the facility projects. The State of Minnesota continued to reduce aid to local governments. Due
to this reduction, the City of Hopkins would lose an additional $1,000,000 in local government aid.
The City would implement a franchise fee which would be applied to electric and gas utility
customers within the City of Hopkins. $84,000,000 worth of construction was to be completed in
25
2004. The City's population would remain constant. The City anticipated inflationary increases of
about 2% over the modified 2003 budget.
During the current fiscal year,unreserved fund balance in the general fund decreased to $3,787,911.
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
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S1NIV IIiV1S IVION`dNH OISVO
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City of Hopkins
Statement of Net Assets
December 31, 2003
Primary Government
Governmental Business-type
Activities Activities Total _
Assets
Cash and investments $ 16,724,217 $ 4,518,066 $ 21,242,283
Taxes receivable 167,112 - 167,112 -
Special assessments receivable 11,976,037 - 11,976,037
Accounts receivable 582,299 257,517 839,816
Intergovernmental receivable 545,027 - 545,027 -
Interest receivable 122,701 12,159 134,860
Internal balances 960,388 (960,388)
Inventories 82,397 24,150 106,547 -
Prepaid items 21,250 18,708 39,958
Restricted cash and investments 9,186,698 - 9,186,698
Deferred charges-issuance costs 48,085 - 48,085 -
Long-term receivables 1,839,816 - 1,839,816
Capital assets, non depreciable 14,259,063 1,481,711 15,740,774
Capital assets, net of accumulated depreciation 15,074,899 17,654,079 32,728,978 -
Total assets 71,589,989 23,006,002 94,595,991
Liabilities -
Accounts payable 1,940,070 443,421 2,383,491
Accrued interest payable 704,863 105,138 810,001
Deferred revenue 285,535 1,147 286,682 --
Compensated absences due within one year 60,498 8,574 69,072
Compensated absences due in more than one year 573,642 115,235 688,877
Bonds due within one year 1,080,620 440,000 1,520,620
Bonds due in more than one year 28,782,436 5,270,000 34,052,436
Total liabilities 33,427,664 6,383,515 39,811,179
Net Assets
Invested in capital assets, net of related debt 15,459,174 13,425,790 28,884,964
Restricted for:
Housing project 49,000 - 49,000
Debt service 238,418 - 238,418
Unrestricted 22,415,733 3,196,697 25,612,430 -
Total net assets $ 38,162,325 $ 16,622,487 $ 54,784,812
The notes to the financial statements are an integral part of this statement.
28
I I I I I i I I I I I I 1 I I I I I I
City of Hopkins
Statement of Activities
For the Year Ended December 31,2003
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 $ 1,411,159 $ 301,021 $ - $ - $ (1,110,138) $ $ (1,110,138)
Public Safety 4,477,224 1,179,448 346,313 - (2,951,463) - (2,951,463)
Health and Welfare 185,893 18,497 95,261 (72,135) - (72,135)
Highways and Streets 2,229,671 720,524 116,208 764,138 (628,801) - (628,801)
Urban Redevelopment and Housing 1,596,395 293,634 735,979 - (566,782) - (566,782)
Culture and Recreation 1,220,030 351,011 101,000 (768,019) - (768,019)
Interest on long-term debt 1,650,989 - - - (1,650,989) - (1,650,989)
Total Governmental activities 12,771,361 2,864,135 1,394,761 764,138 (7,748,327) - (7,748,327)
Business-type Activities:
Water 1,075,399 942,795 - - (132,604) (132,604)
Sewer 1,459,743 1,324,254 - - (135,489) (135,489)
Storm Sewer 409,282 666,524 - - 257,242 257,242
Refuse 654,721 515,930 23,394 - (115,397) (115,397)
Pavilion/ice Arena 339,511 275,488 - - (64,023) (64,023)
Skate Park 18,199 5,655 - 98,873 86,329 86,329
Housing and Redevelopment Authority 448,669 427,495 280,956 - - 259,782 259,782
Total Business-type activities 4,405,524 4,158,141 304,350 98,873 - 155,840 155,840
Total government $ 17,176,885 $ 7,022,276 $ 1,699,111 $ 863,011 (7,748,327) 155,840 (7,592,487)
General revenues:
Property taxes 6,877,331 - 6,877,331
Tax increments 2,214,833 - 2,214,833
Grants&contributions not restricted 691,438 - 691,438
Unrestricted investment earnings 327,959 88,767 416,726
Total general revenues 10,111,561 88,767 10,200,328
Change in net assets 2,363,234 244,607 2,607,841
Net assets-beginning 35,799,091 16,377,880 52,176,971
Net assets-ending $ 38,162,325 $ 16,622,487 $ 54,784,812
The notes to the financial statements are an integral part of this statement.
29
City of Hopkins
Balance Sheet
Governmental Funds
December 31,2003
Permanent 1999-A 1999-B
Improvement Taxable Taxable
Capital Revolving 1997 GO Housing Housing Other Total
Improvement Fund Improvement Improvement Housing Bond Governmental Governmental
General Fund Fund Fund Funds Funds
Assets
Cash and investments $ 3,278,390 $ $ 658,824 $ 171,414 $ 162,306 $ 286,040 $ 9,988,631 $ 14,545,605
Taxes receivable 57,352 - - - - 109,760 167,112
Special assessments receivable - 2,328,696 2,454,114 2,297,144 4,102,898 793,185 11,976,037
Accounts receivable 49,016 972 - - - 532,311 582,299
Intergovernmental receivable 21,665 108,517 - - - 414,845 545,027
Interest receivable 44,253 24,958 1,637 476 472 796 32,821 105,413
Due from other funds 43,000 - 453,838 - - - 1,576,933 2,073,771
Inventories 82,397 - - 82,397
Prepaid Items 21,250 - - - - - - 21,250
Restricted cash and investments - 9,137,667 49,031 9,186,698
Long-term receivable - - 1,839,816 1,839,816
Advance to other funds 453,981 - - - - - 2,534,906 2,988,887
Total assets $ 4,051,304 $ 9,162,625 $ 3,552,484 $ 2,626,004 $ 2,459,922 $ 4,389,734 $ 17,872,239 _E_44.114.312
Liabilities and fund balances
Liabilities:
Accounts payable $ 187,379 $ 1,177,105 $ 71,249 $ - $ - $ - $ 484,744 $ 1,920,477
Due to other funds - 1,485,504 - - 378,206 1,863,710
Unearned revenue 76,014 - 5,437 560,258 641,709
Advance from other funds - - - - - 2,988,887 2,988,887
Deferred revenue - - 2,317,977 2,452,293 2,296,716 4,094,742 691,692 11,853,420
Total liabilities 263,393 2,662,609 2,389,226 2,452,293 2,296,716 4,100,179 5,103,787 19,268,203
Fund balances:
Reserved for:
Prepaid items 21,250 - - - - - - 21,250
Inventory 82,397 - 82,397
Facility project - 6,500,016 - 6,500,016
Housing project - 49,000 49,000
Long-term receivable 453,211 453,211
Tax increment districts - 2,775,997 2,775,997
Advances to other funds 453,981 - - - - - 2,534,906 2,988,887
Debt service - 173,711 163,206 289,555 2,418,874 3,045,346
Unreserved,reported in:
Designated for:
General fund working capital 3,068,484 - - - - - 3,068,484
Capital project funds - 1,163,258 2,830,666 3,993,924
Special revenue funds - - 157,224 157,224
Unreserved,reported in:
General fund 161,799 - - - - - - 161,799
Special revenue funds - - - - - 1,548,574 1,548,574
Total fund balances 3,787,911 6,500,016 1,163,258 173,711 163,206 289,555 12,768,452 24,846,109
Total liabilities and fund balances $ 4,051,304 $ 9,162,625 $ 3,552,484 $ 2,626,004 $ 2,459,922 $ 4,389,734 $ 17,872,239 $ 44,114,312
The notes to the financial statements are an integral part of this statement.
30
I I I I I I ! I I I I I I I I I I I !
City of Hopkins
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Assets
December 31,2003
Fund balances of governmental funds $ 24,846,109
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 39,097,898
Less accumulated depreciation (11,146,012)
Other long-term assets not available to pay current period expenditures and,therefore,are
deferred in the governmental funds. 12,209,594
Internal service funds are used by the City of 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. 3,674,570
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 (30,567,919)
Less deferred charge for bond issuance costs 48,085
Net assets of governmental activities $ 38.162.325
The notes to the financial statements are an integral part of this statement.
31
City of Hopkins
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2003
Permanent 1999-A 1999-B
Improvement 1997 G.O. Taxable Taxable Other Total
Revolving Housing Housing Housing Capital 9 9 9 Governmental Governmental
General Fund Improvement Fund Fund Bonds Improv. Improv. Funds Funds
Revenues
Property taxes $ 5,932,258 $ $ - $ - $ $ $ 945,073 $ 6,877,331
Tax increments - - - - 2,214,835 2,214,835
Special assessments - - 769,465 173,442 146,578 254,368 116,611 1,460,464
Intergovernmental 1,094,005 - - - - - 1,756,332 2,850,337
Fees, licenses and permits 639,566 - - - 138,431 777,997
Charges for services 333,085 - - 464,148 797,233
Fines 133,973 - - - - - 47,920 181,893
Interest 101,647 18,240 21,206 1,893 2,165 3,668 179,140 327,959
Other miscellaneous revenues 9,783 - 87,900 - - - 126,637 224,320
Total revenues 8,244,317 18,240 878,571 175,335 148,743 258,036 5,989,127 15,712,369
EXPENDITURES
Current:
General government 1,155,609 - - - - - 103,512 1,259,121
Public safety 4,309,848 - - - 123,651 4,433,499
Health and welfare 60,535 - - - - - 125,358 185,893
Highways and streets 1,631,249 - - - - 43,587 1,674,836
Urban redevelopment and housing - - - - - 1,595,927 1,595,927
Culture and recreation 489,697 - - - - - 555,251 1,044,948
Debt service:
Interest and fiscal fees - 46,500 3,030 113,821 94,457 173,422 976,417 1,407,647
Principal retirement - - - 50,000 40,000 70,000 1,528,138 1,688,138
Capital outlay 24,271 6,976,347 638,411 - - - 1,391,600 9,030,629
Total expenditures 7,671,209 7,022,847 641,441 163,821 134,457 243,422 6,443,441 22,320,638
Excess(deficiency)of revenues over
expenditures 573,108 (7,004,607) 237,130 11,514 14,286 14,614 (454,314) (6,608,269)
Other financing sources(uses)
Bondsissued 3,050,000 3,050,000
Transferin - 150,000 - - - - 1,892,771 2,042,771
Transfer out (721,004) (218,219) (1,662,952) (2,602,175)
Total other financing sources and
uses (721,004) 3,200,000 (218,219) - - 229,819 2,490,596
32
City of Hopkins
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2003
Permanent 1999-A 1999-B
Improvement 1997 G.O. Taxable Taxable Other Total
Capital Revolving Housing Housing Housing Governmental Governmental
p Improv. Improv. Funds Funds
General Fund Improvement Fund Fund Bonds P p
Net change in fund balances (147,896) (3,804,607) 18,911 11,514 14,286 14,614 (224,495) (4,117,673)
Fund balances--beginning,as restated 3,935,807 10,304,623 1,144,347 162,197 148,920 274,941 12,992,947 28,963,782
Fund balancesending $ 3,787,911 $ 6,500,016 $ 1,163,258 $ 173,711 $ 163,206 $ 289,555 $ 12,768,452 $ 24,846,109
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 31,2003
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances--total governmental ($ 4,117,673)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period. 8,208,534
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds (656,226)
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt uses the current financial resources of
governmental funds. Neither transaction, however,has any effect on net assets. Also,
governmental funds report the effect of issuance costs,premiums,discounts,and similar items
when debt is first issued,whereas these amounts are deferred and amortized in the statement
of activities. This amount is the net effect of these differences in the treatment of long-term
debt related items. (1,606,649)
External revenues and expenditures of the internal service funds reported in the statement of activities
are not reported as revenues and expenditures in governmental funds. 535,248
Change in net assets of governmental activities $ 2,363,234
The notes to the financial statements are an integral part of this statement.
33
City of Hopkins,Minnesota -
I of 5
Statements of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual -
General Fund
For the Year Ended December 31,2003
Variance with
final budget
Budget positive
Original Final Actual (negative)
Revenues -
Taxes
General property taxes $ 5,460,523 $ 5,163,952 $ 5,221,220 $ 57,268
Fiscal disparities 740,729 740,729 711,038 (29,691) -
Total Taxes 6,201,252 5,904,681 5,932,258 27,577
Licenses and permits _
Business 129,430 129,430 125,469 (3,961)
Non-business 336,100 366.100 514,097 147,997
Total Licenses and permits 465,530 495,530 639,566 144,036
Intergovernmental
Local government aids 1,103,510 372,488 374,357 1,869
Market value aid credit 296,571 296,571 - -
State grants 44,060 144,060 148,169 4,109
Insurance premium-police 140,300 140,300 150,644 10,344
Insurance premium-fire 60,585 78,585 79,403 818 -
Federal grants 6,500 30,500 28,175 (2,325)
Other grants 15,950 20,450 16.686 (3,764)
Total Intergovernmental 1,370,905 1,082,954 1,094,005 11,051
Fines and forfeitures
Court fines 130,000 130,000 133,973 3,973
Charges for services
General government 2,400 2,400 3,588 1,188
Public safety 37,500 37,500 56,177 18,677
Public works 27,540 27,540 9,571 (17,969)
Recreation 62,100 62,100 71,527 9,427
Community development 59,400 59,400 192,222 132,822 -
Total Charges for services 188,940 188,940 333,085 144,145
Other _
Investment earnings 160,615 160,615 101,647 (58,968)
Miscellaneous 20,064 20,064 9,783 (10,281)
Total Other 180,679 180,679 111,430 (69,249)
Total Revenues $ 8,537,306 $ 7,982,784 $ 8,244,317 $ 261,533
Expenditures -
General Government:
Mayor and council
Salaries and employee benefits $ 26,279 $ 26,279 $ 26,497 $ (218) -
Materials,supplies and services 85,460 69,250 47,037 22,213
Total 111,739 95,529 73,534 21,995
34
City of Hopkins,Minnesota
2of5
Statements of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31,2003
Variance with
final budget
_ Budget positive
Original Final Actual (negative)
Expenditures,(continued)
General Government,(continued):
Administrative services
Salaries and employee benefits 382,372 333,959 345,697 (11,738)
Materials,supplies and services 197,342 71,273 58,802 12,471
Total 579,714 405,232 404,499 733
Less expenditures charged to other activities (95,033) (95,033) (103,625) 8,592
Net 484,681 310,199 300,874 9,325
Finance
Salaries and employee benefits 286,893 285,500 282,194 3,306
Materials,supplies and services 49,354 41,955 51,529 (9,574)
Total 336,247 327,455 333,723 (6,268)
Less expenditures charged to other activities (177,856) (177,856) (186,781) 8,925
Net 158,391 149,599 146,942 2,657
Legal Services
Materials,supplies and services 123,980 123,980 119,871 4,109
Municipal Building
Salaries and employee benefits 81,759 81,362 74,347 7,015
Materials,supplies and services 187,870 186,670 170,425 16,245
Total 269,629 268,032 244,772 23,260
Less expenditures charged to other activities (167,760) (167,760) (174,229) 6,469
Net 101,869 100,272 70,543 29,729
Elections
Salaries and employee benefits 12,247 12,188 11,996 192
Materials,supplies and services 11,460 11,250 8,345 2,905
Total 23,707 23,438 20,341 3,097
City Clerk and Reception
Salaries and employee benefits 97,872 97,398 109,260 (11,862)
Materials,supplies and services 11,926 11,051 10,968 83
Total 109,798 108,449 120,228 (11,779)
Less expenditures charged to other activities (21,600) (21,600) (21,500) (100)
Net 88,198 86,849 98,728 (11,879)
Assessing
Salaries and employee benefits 216,902 215,850 186,169 29,681
Materials,supplies and services 25,160 1,394 39,454 (38,060)
Total 242,062 217,244 225,623 (8,379)
35
City of Hopkins,Minnesota -
3 of 5
Statements of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual _
General Fund
For the Year Ended December 31,2003
Variance with
final budget
Budget positive
Original Final Actual (negative)
Expenditures,(continued) -
General Government,(continued):
Planning and economic development
Salaries and employee benefits 92,412 91,963 89,584 2,379 -
Materials,supplies and services 10,981 9,827 9,569 258
Total 103,393 101,790 99,153 2,637
Total General Government 1,438,020 1,208,900 1,155,609 53,291
Public Safety:
Police
Police Administration
Salaries and employee benefits 271,286 269,970 277,170 (7,200)
Materials,supplies and services 87,000 72,741 74,591 (1,850) -
Total 358,286 342,711 351,761 (9,050)
Less expenditures charged to other activities (305,300) (305,300) (305,344) 44
Net 52,986 37,411 46,417 (9,006) -
Police Patrol and Investigation
Salaries and employee benefits 1,948,329 1,874,133 1,847,286 26,847 -
Materials,supplies and services 586,907 546,209 582,855 (36,646)
Capital outlay 10,000 13,000 5,457 7,543
Total 2,545,236 2,433,342 2,435,598 (2,256)
Police Services
Salaries and employee benefits 689,514 686,172 665,395 20,777
Materials,supplies and services 260,212 224,716 212,264 12,452 -
Capital outlay 6,000 150 - 150
Total 955,726 911,038 877,659 33,379
Total Police 3,553,948 3,381,791 3,359,674 22,117 -
Fire
Salaries and employee benefits 310,760 351,253 349,973 1,280 -
Materials,supplies and services 285,886 228,376 249,658 (21,282)
Capital outlay - 31,700 11,700 20,000
Total 596,646 611,329 611,331 (2)
Inspections
Salaries and employee benefits 323,789 322,219 303,040 19,179
Materials,supplies and services 56,307 51,723 52,960 (1,237) -
Total 380,096 373,942 356,000 17,942
Total Public safety 41530,690 4,367,062 4,327,005 40,057
36
City of Hopkins,Minnesota
4of5
Statements of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31,2003
Variance with
final budget
_ Budget positive
Original Final Actual (negative)
Expenditures,(continued)
Health and Welfare:
Inspections
Salaries and employee benefits 35,407 35,241 42,598 (7,357)
Materials,supplies and services 26,151 24,775 17,937 6,838
Total 61,558 60,016 60,535 (519)
Total Health and welfare 61,558 60,016 60,535 (519)
Highways and Streets:
Public works buildings and equipment services
Salaries and employee benefits 181,102 180,224 175,999 4,225
Materials,supplies and services 56,761 54,997 45,258 9,739
Capital outlay 22,000 19,200 19,200
Total 259,863 254,421 221,257 33,164
Less expenditures charged to other activities (193,056) (193,056) (193,154) 98
Net 66,807 61,365 28,103 33,262
Public Works Administration and Engineering
Salaries and employee benefits 278,723 277,371 276,867 504
Materials,supplies and services 49,744 42,754 39,643 3,111
Total 328,467 320,125 316,510 3,615
Less expenditures charged to other activities (205,608) (205,608) (176,749) (28,859)
Net 122,859 114,517 139,761 (25,244)
Streets and Alleys
Salaries and employee benefits 412,827 395,825 339,541 56,284
Materials,supplies and services 354,445 272,139 226,501 45,638
Capital outlay 12,500 18,500 - 18,500
Total 779,772 686,464 566,042 120,422
Less expenditures charged to other activities (98,584) (108,584) (102,393) (6,191)
Net 681,188 577,880 463,649 114,231
Sidewalk Repair and Mall Maintenance:
Salaries and employee benefits 21,829 21,723 26,942 (5,219)
Materials,supplies and services 42,227 16,493 9,454 7,039
Total 64,056 38,216 36,396 1,820
Signs, Signals and Lighting:
Salaries and employee benefits 75,824 75,457 72,206 3,251
Materials,supplies and services 204,347 201,178 174,735 26,443
Total 280,171 276,635 246,941 29,694
37
City of Hopkins,Minnesota
5 of 5
Statements of Revenues,Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December 31,2003
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 527,229 524,671 521,528 3,143
Materials,supplies and services 208,424 186,356 194,871 (8,515)
Capital outlay 17,500 2,400 849 1,551
Total 753,153 713,427 717,248 (3,821)
Total Highways and Streets 1,968,234 1,782,040 1,632,098 149,942
Culture and Recreation:
Activity center
Salaries and employee benefits 195,893 194,943 183,079 11,864
Materials,supplies and services 96,953 95,762 104,064 (8,302)
Capital outlay 3,600 12,100 6,265 5,835
Total 296,446 302,805 293,408 9,397
Park and Recreation
Salaries and employee benefits 69,605 69,605 51,994 17,611
Materials,supplies and services 156,800 156,800 150,560 6,240 _
Total 226,405 226,405 202,554 23,851
Total Culture and Recreation 522,851 529,210 495,962 33,248
Total Expenditures $ 8,521,353 $ 7,947,228 $ 7,671,209 $ 205,187
Other Financing Sources(Uses):
Operating transfers out: (15,953) (165,953) (721,004) 555,051
Net change in fund balance (130,397) (147,896) (17,499)
Fund Balance-January 1,as restated 3,376,403 3,376,403 3,935,807 (559,404)
Fund Balance-December 31 $ 3,376,403 $ 3,246,006 $ 3,787,911 $ 541,905
The notes to the financial statements are an integral part of this statement.
38
CITY OF HOPKINS,MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31,2003
Business-type Activities-Enterprise Funds
- Governmental
Other Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
ASSETS
Current assets
Cash and investments $ 1,130,664 $ 1,241,709 $ 1,371,463 $ 774,230 $ 4,518,066 $ 2,178,612
Accounts receivable 120,062 99,230 - 38,225 257,517 -
Accrued interest receivable 3,051 3,496 3,858 1,754 12,159 17,288
Due from other funds - - 2,700 2,700 101,112
Advance to other funds - - - - - 649,215
Inventory 13,136 10,027 - 987 24,150 -
_ Prepaid expenses - - 18,708 18,708 -
Total current assets 1,266,913 1,354,462 1,375,321 836,604 4,833,300 2,946,227
Noncurrent assets
Capital Assets:
Land 16,447 5,150 26,800 157,300 205,697 -
Buildings and structures 44,486 - - 5,691,260 5,735,746 -
Distribution system 8,208,044 5,496,070 7,989,820 55,310 21,749,244
Machinery and equipment 295,630 294,533 12,876 652,580 1,255,619 4,828,421
Construction in progress 40,816 82,046 235,969 917,183 1,276,014
Less accumulated depreciation (3,869,208) (2,750,659) (1,607,156) (2,859,507) (11,086,530) (3,446,345)
Net capital assets 4,736,215 3,127,140 6,658,309 4,614,126 19,135,790 1,382,076
Total Assets 6,003,128 4,481,602 8,033,630 5,450,730 23,969,090 4,328,303
LIABILITIES
Current Liabilities:
Accounts payable 30,487 221,692 16,843 174,399 443,421 19,593
Due to other funds 51,896 17,267 223,710 21,000 313,873 -
Compensated absences pay.-curr. 2,159 2,195 340 3,880 8,574 60,498
_ Deferred revenue - 1,147 1,147 -
Accrued interest payable 37,235 67,903 - 105,138 -
Revenue bonds-current 110,000 330,000 - 440,000 -
Total Current Liabilities 231,777 241,154 638,796 200,426 1,312,153 80,091
Noncurrent Liabilities:
Advance from other funds - 649,215 649,215 -
Compensated absences payable 29,268 38,342 4,045 43,580 115,235 573,642
Revenue bonds payable 1,630,000 - 3,640,000 5,270,000 -
Total noncurrent liabilities 1,659,268 38,342 3,644,045 692,795 6,034,450 573,642
Total Liabilities 1,891,045 279,496 4,282,841 893,221 7,346,603 653,733
NET ASSETS
Invested in capital assets,
net of related debt 2,996,215 3,127,140 2,688,309 4,614,126 13,425,790 1,382,076
Unrestricted 1,115,868 1,074,966 1,062,480 (56,617) 3,196,697 2,292,494
Total net assets $ 4,1 12,083 $ 4,202,106 $ 3,750,789 $ 4,557,509 $ 16,622,487 $ 3,674,570
The notes to the financial statements are an integral part of this statement.
39
CITY OF HOPKINS,MINNESOTA -
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31,2003 -
Business-type Activities-Enterprise Funds
Governmental
Other Activities -
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Operating revenues: -
Charges for services $ 901,178 $ 1,292,450 $ 628,971 $ 1,169,628 $ 3,992,227 $ 940,745
Other 41,617 31,804 37,553 54,940 165,914 -
Total Operating Revenues 942,795 1,324,254 666,524 1,224,568 4,158,141 940,745 -
Operating expenses:
Cost of sales and service 588,814 1,177,418 27,946 1,054,928 2,849,106 637,705 -
Administration 175,502 188,697 69,021 178,929 612,149 55,285
Depreciation 227,004 93,628 165,422 227,243 713,297 312,932
Total Operating Expenses 991,320 1,459,743 262,389 1,461,100 4,174,552 1,005,922 -
Operating income(loss) (48,525) (135,489) 404,135 (236,532) (16,411) (65,177)
Nonoperating revenues(expenses):
Investment earnings 24,594 26,559 23,843 13,771 88,767 36,686
Interest/fiscal agent expense (84,079) - (113,178) - (197,257) - -
Intergovernmental grants - - - 304,350 304,350 -
Bond issuance expense - - (33,715) - (33,715) -
Gain on sale of equipment - - - - - 4,335 -
Total nonoperating revenues
(expenses) (59,485) 26,559 (123,050) 318,121 162,145 41,021
Income(loss)before contributions
and transfers (108,010) (108,930) 281,085 81,589 145,734 (24,156)
Capital contributions - - - 98,873 98,873 - -
Transfers in - - - 559,404
Change in net assets (108,010) (108,930) 281,085 180,462 244,607 535,248
Total net assets-beginning,
as restated 4,220,093 4,3 1 1,036 3,469,704 4,377,047 16,377,880 3,139,322
Total net assets-ending $ 4,112,083 $ 4,202,106 $ 3,750,789 $ 4,557,509 $ 16,622,487 $ 3,674,570
The notes to the financial statements are an integral part of this statement. -
40
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2003
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 $ 970,164 $ 1,283,118 $ 718,902 $ 1,250,829 $ 4,223,013 $ 47,469
Receipts from interfund services provided - - - - 792,582
Internal activity-payments to other funds (3,125) (5,500) - (44,291) (52,916)
Internal activity-payments from other funds - - 21,000 21,000 -
Payments to suppliers (301,614) (933,603) (16,733) (582,726) (1,834,676) (37,027)
Payments to employees (326,469) (175,691) (23,335) (487,074) (1,012,569)
Payments for interfund services used (122,476) (170,093) (68,521) (126,646) (487,736) (3,065)
Net cash provided by(used)by operating activities 216,480 (1,769) 610,313 31,092 856,116 799,959
Cash Flows from Noncapital Financing Activities
Internal activity-payments to other funds - - (521,326) - (521,326) -
Internal activity-payments from other funds 300,000 400,000 393,400 - 1,093,400 -
Intergovernmental grants - - - 304,350 304,350 -
Net cash provided by(used)by noncapital financing activities 300,000 400,000 (127,926) 304,350 876,424 -
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets - (340,035) (340,035) (81,145)
Construction of capital assets (136,831) (68,510) (253,557) (707,412) (1,166,310)
Proceeds from Sales of capital assets - - - - - 4,335
Advance to Pavilion for Mezzanine construction - - - - - (649,215)
Advance from Equipment fund - - - 649,215 649,215 -
Proceeds from issuance of bonds - - 1,265,000 - 1,265,000 -
Interest and other payments (84,079) - (146,893) - (230,972) -
Bond payments (105,000) - (250,000) (355,000) -
Net cash provided by(used)by capital and related
financing activities (325,910) (68,510) 614,550 (398,232) (178,102) (726,025)
Cash Flows From Investing Activities
Investment earnings 28,568 29,173 19,308 16,301 93,350 29,020
Net increase(decrease)in cash and investments 219,138 358,894 1,116,245 (46,489) 1,647,788 102,954
Cash and Investments-January 1 911,526 882,815 255,218 820,719 2,870,278 2,075,658
Cash and Investments-December 31 $ 1,130,664 $ 1,241,709 $ 1,371,463 $ 774,230 $ 4,518,066 $ 2,178,612
41
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS,(CONT.)
PROPRIETARY FUNDS
For the Year Ended December 31,2003
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities:
Operating income(loss) $ (48,525) $ (135,489) $ 404,135 $ (236,532) $ (16,411) $ (65,177)
Adjustments to reconcile operating income
(loss)to net cash provided by operating
activities:
Depreciation expense 227,004 93,628 165,422 227,243 713,297 312,932
(Increase)decrease in:
Accounts receivable 27,369 (41,136) 52,378 28,474 67,085 418
Due from other funds - - (2,700) (2,700) -
Inventory 1,952 (837) - (382) 733
Prepaid expense - - (10,862) (10,862) -
Accounts and compensated absences (37,248) (727) (11,622) 61,703 12,106 652,898
Due to other funds 48,771 11,767 - (23,291) 37,247 (101,112)
Due to other governments (2,843) 71,025 (13,048) 55,134 -
Deferred revenue - 487 487 -
Net Cash Provided by(used)by Operating Activities $ 216,480 $ (1,769) $ 610,313 $ 31,092 $ 856,116 $ 799,959
Noncash investing,capital and financing activities:
Contribution of capital assets $ - $ $ - $ 98,873 $ 98,873 $ -
The notes to the financial statements are an integral part of this statement.
42
CITY OF HOPKINS,MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
December 31,2003
Agency
Fund
ASSETS
Cash and investments $ 384,735
Accrued interest receivable 32,397
Due from other governments 31,406
Total Assets 448,538
LIABILITIES
Accounts Payable 25,555
—
Due to NW Metro Drug Task Force 422,983
Total Liabilities $ 448,538
The notes to the financial statements are an integral part of this statement.
43
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
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
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, proprietary funds, and fiduciary 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 goverrunent-wide financial statements are reported using the economic resources measurement focus and the —
accrual basis of accounting, as are the proprietary fund and fiduciary 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 —
44
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2003
items are recognized as revenue as soon as all eligibility requirements have been met. Unbilled utility service
receivables are recorded at year end.
Governmental funds are accounted for using the current financial resources measurement focus and the modified
accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become
measurable and available). "Measurable"means the amount of the transaction can be determined and"available"
means collectible with the current period or within sixty days thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental
revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual
include fees and miscellaneous revenues; such revenues are recorded only as received because they are not
measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund
liability is incurred, except for principal and interest on general long-term debt and compensated absences which
are recognized when due and payable.
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others
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 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 1997B 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 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 31,2003 —
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.
Fiduciary Funds
Agency Funds — Agency funds are custodial in nature and do not present results of operations or have a —
measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This
fund is used to account for assets that the government holds for others in an agency capacity.
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 nonoperating 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 nonoperating 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 31,2003
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 31,2003
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, 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 $53,000 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 using the effective interest method. 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 31,2003
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
Quasi-external transactions 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 6
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, 2003, there were 14 note/bond issues outstanding, with an aggregate principal amount payable of
approximately $51.1 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 31,2003
P. CHANGE IN ACCOUNTING PRINCIPLES
Effective January 1, 2003, the City implemented several new accounting standards issued by the Governmental
Accounting Standards Board (GASB). A general description of the accounting standards issued by the GASB that
became effective in 2003 is as follows:
GASB Statement No. 34, Basic Financial Statements – and Management's Discussion and Analysis –for State
and Local Governments, establishes new guidance for the measurement and display of information in the financial
statements, as well as related note disclosures and required supplementary information. Significant provisions of
GASB Statement No. 34 include the following:
■ Management's Discussion and Analysis (MD&A) section providing an analysis of the City's overall
financial position and results of operations;
■ Financial statements prepared using the full accrual accounting for the City's activities within the
government-wide financial statements; —
■ Infrastructure reporting;and
■ Focus on major funds in the financial statements.
GASB Statement No. 37, Basic Financial Statements – and Management's Discussion and Analysis –for State
and Local Governments: Omnibus, amended GASB Statement No. 21, Accounting for Escheat Property and
GASB Statement No. 34. It clarifies certain provisions of GASB Statement No. 34 for more consistent application
and modified other provisions to meeting changing requirements.
GASB Statement No. 38, Certain Financial Statement Note Disclosures modified, established, and rescinded
certain financial statement disclosure requirements.
GASB Interpretation No. 6,Recognition and Measurement of Certain Liabilities and Expenditures in Government
Fund Financial Statements clarifies the application of standards for modified accrual recognition of certain
liabilities and expenditures in governmental funds. —
The City's beginning fund balances/net assets have been restated to reflect the implementation of GASB Statement
No. 34 and GASB Interpretation No. 6. The principal effect of implementation of these pronouncements on fund
balances/net assets was the removal of the compensated absences liability (reported on a modified accrual basis)
from the determination of fund balance in the general fund and the inclusion of the compensated absences liability
(on an accrual basis) in the determination of net assets in internal service funds. Accordingly, general fund
balance, as previously reported of$3,376,403, increased by $559,404 to $3,935,807, as restated. Internal service —
funds net assets, as previously reported of$3,698,726, decreased by$559,404 to$3,139,322, as restated.
The City also restated opening net assets to account for the ownership of certain property by the Housing and --
Redevelopment Authority in and for the City of Hopkins (a blended component unit and nonmajor proprietary
fund) which prior to 2003, although owned, had not been reported. Accordingly, net assets of the Authority, as
previously reported of$66,728, increased by$1,341,857 to$1,408,585, as restated. —
50
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE
SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance —total governmental funds
and net assets—governmental activities as reported in the government-wide statement of net assets. One element
of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported in the funds" Details of this difference are as follows:
Bonds payable $ 29,863,056
Accrued interest payable 704,863
Net adjustment to reduce fund balance—total governmental
funds to arrive at net assets—governmental activities 130.567.919
_ B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE
SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS
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 that"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 $ 9,030,629
Depreciation expense (822,095)
Net adjustment to increase net changes in fund balances—
total governmental funds to arrive at changes in net assets
of governmental activities 8.208.534
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:
HRA Lease Revenue bond issue $(3,050,000)
Principal debt service payments 1,688,138
Deferred issuance costs 48,085
Reverse prior years interest expense 411,991
Accrue interest expense for current year (704,863)
Net adjustment to increase net changes in fund balances—
total governmental funds to arrive at changes in net assets
of governmental activities 1.606.649
51
City of Hopkins, Minnesota _
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2003 —
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 CDBG 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 the largest at ($424,125). The council deemed budget reductions necessary during
2003 as a result of decreased revenues from the state. —
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS(unaudited)
For the year ended December 31, 2003, actual expenditures exceeded the budgeted amount in the Section 8 fund
by $13,136 and the Tax Increment Districts 1-2, 2-1, 2-6, 2-7 and 2-10 funds,by$135,890, $3,134, $381, $96,810
and $122, respectively. These over expenditures were funded by greater than anticipated revenues in the case of —
the Section 8 fund and by available fund balance in the Tax Increment funds.
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process
are funds that are completely reimbursable from the federal govermnent. The Community Development Block —
Grant is a non-budgeted fund.
C. FUND BALANCE DEFICITS —
At December 31, 2003, 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 $1,043,467
Tax Increment 2.6 $ 425,178
Depot Coffee House $ 17,596 —
52
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2003
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 31,2003,were as follows:
CMinjZ Value Bank Balance
$ 195,259 $ 862,915
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, 2003 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
(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
53
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2003 _
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 31,2003,were as follows: —
Credit Risk Category
Securities Type 1 2 3 Fair Value —
U.S. Government
Agency Securities $21,253,814 $ - $ - $21,253,814
Commercial Paper 8,979,908 - - 8,979,908
Total Investments $30,233,722 $ - $ - $30,233,722
Total Deposits(See Note 4A) 195,259
Total Investments and Deposits 30,428,981 --
Less Restricted Cash and Investments 9,186,698
Net Cash,Cash Equivalents and Investments 21.242.283 —
In fiscal 2003,the City recorded an unrealized loss of$33,384 for certain investments.
54
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
5. CAPITAL ASSETS
Capital asset activity for the year ended December 31,2003 were as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets,not being depreciated
Land $ 5,747,102 $ 107,339 $ (82,418) $ 5,772,023
Construction in Progress 461,854 8,025,186 - 8,487,040
Total not being depreciated 6,208,956 8,132,525 (82,418) 14,259,063
_ Capital assets, being depreciated
Buildings 6,157,369 26,833 (175,873) 6,008,329
Infrastructure 17,912,147 751,104 (3,360,510) 15,302,741
Other Improvements 2,004,699 94,624 (133,123) 1,966,200
Vehicles 2,675,319 38,508 (92,871) 2,620,956
Machinery &Equipment 3,993,895 68,182 (293,047) 3,769,030
Total being depreciated 32,743,429 979,251 (4,055,424) 29,667,255
Less accumulated depreciation:
Buildings (1,700,579) (151,649) - (1,852,228)
-' Infrastructure (6,552,992) (522,891) - (7,075,883)
Other Improvements (1,156,199) (57,035) - (1,213,234)
Vehicles (1,743,041) (160,257) - (1,903,298)
Machinery &Equipment (2,378,945) (243,196) 74,427 (2,547,714)
Total accumulated depreciation (13,531,756) (1,135,028) 74,427 (14,592,357)
Total capital assets,being
depreciated, net 19,211,673 (155,777) (3,980,997) 15,074,899
Governmental activities capital
assets,net $25,420,629 $7,976,748 $(4,063,415) $29,333,962
55
City of Hopkins,Minnesota _
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
Beginning
Balance as Ending —
restated Increases Decreases Balance
Business-type Activities:
Capital assets, not being depreciated —
Land $ 205,697 $ - $ - $ 205,697
Construction in Progress 388,889 1,048,950 (161,825) 1,276,014
Total not being depreciated 594,586 1,048,950 (161,825) 1,481,711
Capital assets, being depreciated
Buildings 5,618,483 117,262 - 5,735,746
Infrastructure 17,670,864 226,887 (30,803) 17,866,948
Other Improvements 3,589,424 292,872 - 3,882,296
Vehicles 529,809 - - 529,809
Machinery &Equipment 661,017 141,438 (76,645) 725,810 —
Total being depreciated 28,069,597 778,460 (107,448) 28,740,609
Less accumulated depreciation: —
Buildings (2,343,667) (153,684) - (2,497,351)
Infrastructure (7,143,370) (384,331) - (7,527,701)
Other Improvements (281,447) (80,954) - (362,401)
Vehicles (287,361) (21,006) - (308,367)
Machinery&Equipment (394,035) (73,322) 76,647 (390,710)
Total accumulated depreciation (10,449,880) (713,297) 76,647 (11,086,530)
Total capital assets, being
depreciated, net 17,619,717 65,163 (30,801) 17,654,079
Business-type activities capital —
assets,net $18,214,303 $1,114,113 $(192,626) $19,135,790
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 47,986 —
Public safety 43,725
Highways and streets 554,835
Urban redevelopment and housing 468 _
Culture and recreation 175,082
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 312,932
Total depreciation expense—governmental activities &L13 5 028 —
Business-type activities:
Water $ 227,004 —
Sewer 93,628
Storm Sewer 165,422
Refuse 33,378 _
Pavilion/Ice arena 67,735
Skate Park 3,038
Housing and Redevelopment Authority 123,092
Total depreciation expense—business-type activities - S113,297 —
56
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
Construction commitments
The city has active construction projects as of December 31, 2003. 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 $6,701,455.
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 31,2003:
Due from other funds
Permanent
Improvement Nonmajor Nonmajor Internal
General Revolving governmental business-type service Total
Due to other funds:
Water - 51,896 - - - 51,896
Sanitary sewer - 17,267 - - - 17,267
Storm sewer - 223,710 - - - 223,710
Capital Improvement - - 1,485,504 - - 1,485,504
_ Nonmajor governmental 22,000 160,965 91,429 2,700 101,112 378,206
Nonmajor business-type 21,000 - - - - 21,000
Total due to other funds 43,000 453,838 1,576,933 2,700 101,112 2,177,583
Advance from other funds
Nonmajor Internal
General governmental service Total
Advance to other funds:
Nonmajor governmental 453,981 2,534,906 - 2,988,887
Nonmajor business-type - - 649,215 649,215
Total advance to other funds 453,981 2,534,906 649,215 3,638,102
The interfund receivables and payables allows 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, 2003:
Transfers in
Capital Nonmajor Internal
Improvement governmental Service Total
- Transfers out:
General 150,000 11,600 559,404 721,004
Permanent Improvement Revolving - 218,219 - 218,219
Nonmajor governmental - 1,662,952 - 1,662,952
Total transfers out 150,000 1,892,771 559,404 2,602,175
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
57
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003 —
Non-routine transfers include the following: —
1) A one time transfer of $150,000 from the General Fund to the Capital Improvement Fund to facilitate
accumulation of funds for building and infrastructure improvements in the future.
2) An annual operating transfer from the General Fund to the Paratransit fund to support operations of this
fund. The transfer in 2003 is$11,600.
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 Amount
Governmental activities 2.0-8.0% $ 11,025,000
Governmental activities—refunding 3.0-8.1% 2,753,056
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities —
December 31 Principal Interest
2004 $ 785,620 $ 968,562
2005 806,152 879,118 ._
2006 761,284 733,852
2007 755,000 632,763
2008 1,435,000 577,781
2009-2013 4,580,000 1,999,307
2014-2018 2,890,000 929,069
2019-2023 1,765,000 197,766
Total $13,778,056 $ 6,918,218
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.
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2004 $ 295,000 $ 75,780
2005 305,000 66,651
2006 305,000 56,927
2007 315,000 46,378
2008 320,000 34,854
2009-2013 735,000 59,635
Total $ 2,275,000 $ 340,225
58
City of Hopkins,Minnesota
— NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2003
Revenue bonds
The city also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service. During the year $1,265,000 of storm sewer revenue bonds were issued to finance construction
projects involving storm sewer replacement. Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Amount
Storm sewer construction&replacement 2.0– 5.0% $ 2,530,000
_ Water tower painting,meter system replacement 4.5– 5.5% 1,740,000
Storm sewer –refunding 2.75-3.65% 1,440,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
_ 2004 $ 440,000 $ 237,798
2005 440,000 215,302
2006 450,000 198,902
2007 475,000 181,304
2008 495,000 162,202
2009-2013 2,035,000 520,346
2014-2018 965,000 145,747
2019-2023 410,000 42,758
Total $ 5,710,000 $ 1,704,359
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 Amount
Public Works and Fire Station 3.0– 5.0% $10,760,000
— Police Station improvements 2.0– 4.35% 3,050,000
59
City of Hopkins,Minnesota _
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31,2003
Annual debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest —
2004 $ - $ 612,346
2005 495,000 603,753
2006 515,000 588,748
2007 525,000 572,901
2008 540,000 555,831
2009-2013 3,000,000 2,458,313
2014-2018 3,745,000 1,785,463
2019-2023 4,765,000 683,389
2024 225,000 4,567
Total $13,810,000 $ 7,865,311
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market value. At December
31, 2003, the debt limit for the City is $21,331,386. Of the total debt, $11,929,471 of general obligation and revenue
bonds is applicable to the limit. The legal debt margin is$9,401,915. _
Changes in long-term liabilities
Long-term liability activity for the year ended December 31,2003, was as follows:
Beginning Ending Due Within _
Balance Additions Deductions Balance One Year
Governmental activities:
Bonds payable:
General obligation bonds $ 15,251,194 $ - $ 1,473,138 $ 13,778,056 $ 785,620
Special assessment bond 2,490,000 - 215,000 2,275,000 295,000
Public facility lease bonds 10,760,000 3,050,000 - 13,810,000 -
Total bonds payable 28,501,194 3,050,000 1,688,138 29,863,056 1,080,620
Compensated absences 658,548 57,747 82,155 634,140 60,498
Governmental activity
Long-term liabilities $ 29,159,742 $ 3,107,747 $ 1,770,293 $ 30,497,196 $ 1,141,118 _
Business-type activities:
Bonds payable:
Revenue bonds $ 4,800,000 $ 1,265,000 $ 355,000 $ 5,710,000 $ 440,000 _
Compensated absences 120,052 15,820 12,063 123,809 8,574
Business-type activity
Long-term liabilities $ 4,920,052 $ 1,280,820 $ 367,063 $ 5,833,809 $ 448,574
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
60
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance
with Minnesota Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered
by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan.
All police officers,fire fighters and peace officers who 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 ON, 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, 2003, 2002, and 2001 were $233,325, $219,858 and $196,695, respectively. The
City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2003, 2002,
61
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
and 2001 were $154,824, $142,797 and $143,516, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute. --
2. Hopkins Fire Relief Association(HFRA)
Plan Descri tp ion
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:
2003 Contributions: City $30,766
State $79,403 —
Actuarial valuation date: 12/31/03
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
12/31/03 $ 30,766 100% $0
12/31/02 $ 29,870 100% $0 —
12/31/01 $ 29,000 97% $870
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)
12/31/03 $2,796,099 $2,780,591 $ 15,508 101%
12/31/02 $2,423,167 $2,640,695 $(217,528) 92% —
12/31/01 $2,726,858 $2,610,924 $ 115,934 104%
62
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS,(CONT.)
December 31,2003
The estimated accrued liability of$2,780,591 at December 31, 2003 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$15,508,
as of December 31, 2003. 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 $453,211 at December 31,2003.
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.
63
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 fax
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 which are supported through
grant funds.
64
SPECIAL REVENUE FUNDS, (cont.)
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.
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.
65
CITY OF HOPKINS,MINNESOTA
1 of 8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
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 $ 774 $ 1,055,629 $ 65,789 $ 1,200 $ 7,813 $ 359,681
Taxes receivable - 5,806 - - - 17,763
Special Assessments receivable - - - - - -
Accounts receivable - 17,893 - 578 -
Rehabilitation loans receivable - 320,057 - 134,238 -
Accrued interest receivable - 2,768 185 - - 1,010
Due from other funds - 11,429 - - - -
Due from other governments 19,844 - 48,319 - -
Advance to other funds - 1,860,690 - - 674,216
Long term loans receivable - - - -
Restricted cash and investments - - - -
Total Assets $ 20,618 $ 3,274,272 $ 65,974 $ 183,757 $ 8,391 $ 1,052,670
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 913 $ 3,042 $ $ - S 8,649 $ 3,754
Due to other funds 3,000 56,612 4,000 104,502
Deferred revenue - 205,158 - 184,726 -
Advance from other funds - - 753,981 -
Total Liabilities 3,913 264,812 4,000 1,051,858 3,754
Fund balances:
Reserved for:
Restricted cash and investments - - -
Reserved for Rehab loans receivable - 320,057 - 134,238 - -
Reserved for Tax Increment Districts - - - 374,700
Reserved for advance to other funds - 1,860,690 - - 674,216
Reserved for debt service - -
Unreserved:
Designated 16,705 45,519 -
Undesignated - 828,713 65,974 - (1,043,467) -
Total Fund Balances 16,705 3,009,460 65,974 179,757 (1,043,467) 1,048,916
Total Liabilities and Fund Balance $ 20,618 $ 3,274,272 $ 65,974 $ 183,757 S 8,391 $ 1,052,670
66
CITY OF HOPKINS,MINNESOTA
_ 2of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
Special Revenue Funds
_ Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment
District District District District District
Entertainment R.L.Johnson Sonoma Thermotech Diamond Labs
ASSETS
Cash and investments $ 12,274 $ 363,215 $ 10,940 $ 432 $ 52,143
Taxes receivable - - - 34,869
Special Assessments receivable - - -
Accounts receivable - - - - -
Rehabilitation loans receivable - - - - -
Accrued interest receivable 172 1,021 91 248 147
Due from other funds - - - - -
Due from other governments - - - - -
Advance to other funds - - - - -
Long term loans receivable 1,839,816 - - - -
Restricted cash and investments - - - -
Total Assets $ 1,852,262 $ 364,236 $ 11,031 $ 35,549 $ 52,290
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 366 $ 171,305 $ 330 $ 34,896 $ 29,888
Due to other funds - - - -
Deferred revenue - - -
Advance from other funds 1,799,027 - 435,879 - -
Total Liabilities 1,799,393 171,305 436,209 34,896 29,888
Fund balances:
Reserved for:
Restricted cash and investments - - - -
Reserved for Rehab loans receivable - - - - -
Reserved for Tax Increment Districts 52,869 192,931 (425,178) 653 22,402
Reserved for advance to other funds - - - - -
Reserved for debt service - - - -
Unreserved:
Designated - - - -
Undesignated - - - - -
Total Fund Balances 52,869 192,931 (425,178) 653 22,402
Total Liabilities and Fund Balance $ 1,852,262 $ 364,236 S 11,031 $ 35,549 $ 52,290
67
CITY OF HOPKINS,MINNESOTA `
3 of 8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS `
December 31,2003
Special Revenue Funds _.
Tax
Increment Tax Tax
District Increment Increment
Oaks of District District Housing
Mainstreet Business Center SuperValu Para-Transit Rehab
ASSETS
Cash and investments $ 184,585 $ 100,870 $ 2,412,659 $ 226 $ 972,148
Taxes receivable 885 - - -
Special Assessments receivable - - - - -
Accounts receivable - - - -
Rehabilitation loans receivable - - - (1,084)
Accrued interest receivable 518 283 6,777 - 2,873
Due from other funds - - - 4,000
Due from other governments - 15,877 -
Advance to other funds - -
Long term loans receivable - -
Restricted cash and investments - 49,000
Total Assets $ 185.988 $ 101,153 $ 2,419,436 $ 16,103 $ 1,026,937
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 637 $ 62,530 $ 85,790 $ 8,898 $ 332
Due to other funds - - - 7,205 6,511
Deferred revenue - - - - -
Advance from other funds - - - - -
Total Liabilities 637 62,530 85,790 16,103 6,843
Fund balances:
Reserved for:
Restricted cash and investments - - - - 49,000
Reserved for Rehab loans receivable - - - (1,084)
Reserved for Tax Increment Districts 185,351 38,623 2,333,646 -
Reserved for advance to other funds - - - - -
Reserved for debt service - - - -
Unreserved:
Designated - - - - 95,000
Undesignated - - - - 877,178
Total Fund Balances 185,351 38,623 2,333,646 - 1,020,094
Total Liabilities and Fund Balance $ 185,988 $ 101,153 $ 2,419,436 $ 16,103 $ 1,026,937
68
CITY OF HOPKINS,MINNESOTA
4of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
Special Revenue Funds
Depot
Section 8 Coffee
Parking Housing Cable TV House Total
ASSETS
Cash and investments $ 315,490 $ 113,774 $ 230,464 $ 1,733 $ 6,261,839
_ Taxes receivable - - - - 59,323
Special Assessments receivable - - -
Accounts receivable - - 34,882 1,505 54,858
_ Rehabilitation loans receivable - - - - 453,211
Accrued interest receivable 886 320 861 - 18,160
Due from other funds - - 76,000 - 91,429
Due from other governments 3,716 2,087 - 89,843
Advance to other funds - - - 2,534,906
Long term loans receivable - - - - 1,839,816
_ Restricted cash and investments - - - - 49,000
Total Assets $ 320,092 $ 116,181 $ 342,207 $ 3,238 $ 11,452,385
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 1,591 $ 591 $ 6,411 $ 4,233 $ 424,156
Due to other funds 1,113 15,081 2,616 16,601 217,241
Deferred revenue 24,795 - - 414,679
Advance from other funds - - - 2,988,887
Total Liabilities 27,499 15,672 9,027 20,834 4,044,963
Fund balances:
Reserved for:
Restricted cash and investments - - - - 49,000
Reserved for Rehab loans receivable - - - - 453,211
Reserved for Tax Increment Districts - - - - 2,775,997
Reserved for advance to other funds - - - - 2,534,906
Reserved for debt service - - - - -
Unreserved:
Designated - - - - 157,224
Undesignated 292,593 100,509 333,180 (17,596) 1,437,084
Total Fund Balances 292,593 100,509 333,180 (17,596) 7,407,422
Total Liabilities and Fund Balance $ 320,092 $ 116,181 $ 342,207 $ 3,238 $ 11,452,385
69
CITY OF HOPKINS,MINNESOTA
5of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS '—
December 31,2003
Debt Service Funds
Taxable
Redevelop. Redevelop. Redevelop. Taxable
Refunding Refunding C Refunding A Housing Redevelop. D
Bonds of Bonds of Bonds of Bonds of Bonds of
1992 1993 1993 1995 1996
ASSETS
Cash and investments $ 189,362 $ 690,344 $ $ 142,862 $ 92,220
Taxes receivable _ _
Special Assessments receivable - - - 793,185
Accounts receivable _ _
Rehabilitation loans receivable - - _
Accrued interest receivable 534 1,939 - 399 259
Due from other funds - _
Due from other governments - - _
Advance to other funds - -
Long term loans receivable - - _
Restricted cash and investments - _
Total Assets $ 189,896 $ 692,283 $ - $ 936,446 $ 92,479
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ -
Due to other funds - -
Deferred revenue - - - 792,176
Advance from other funds - - - —
Total Liabilities - - - 792.176
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 189,896 692,283 144,270 92,479
Unreserved:
Designated
Undesignated _
Total Fund Balances 189,896 692,283 144,270 92,479
Total Liabilities and Fund Balance $ 189,896 $ 692,283 $ $ 936,446 $ 92,479
70
CITY OF HOPKINS,MINNESOTA
_ 6of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
Debt Service Funds
_ Improvement Park and
Revolving Recreational
Tax Bonds of Refunding D
Increment Improvement 1992, Bonds of
Redevelop. Redevelop. Revolving Refunding 1993,Refunding
Bonds of Bonds of Bonds of Bonds of Bonds of
1996 1997 1999 2001 2001
ASSETS
Cash and investments $ 24,256 $ 212,587 $ 134,054 $ 188,458 $ 155,287
Taxes receivable - - 1,682 4,488 10,374
Special Assessments receivable
Accounts receivable
Rehabilitation loans receivable
Accrued interest receivable 68 597 376 527 436
Due from other funds - - - -
Due from other governments - - - -
Advance to other funds - - - -
Long term loans receivable - - - -
_ Restricted cash and investments - - - -
Total Assets $ 24,324 $ 213,184 $ 136,112 $ 193,473 $ 166,097
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ $ $ - $
_ Due to other funds - - -
Deferred revenue - - 1,551 3,692 9,325
Advance from other funds - - -
Total Liabilities - - 1,551 3,692 9,325
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 24,324 213,184 134,561 189,781 156,772
Unreserved:
Designated
Undesignated
Total Fund Balances 24,324 213,184 134,561 189,781 156,772
Total Liabilities and Fund Balance $ 24,324 $ 213,184 $ 136,112 $ 193,473 $ 166,097
71
CITY OF HOPKINS,MINNESOTA
7of8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
Debt Service Funds
HRA Lease Improvement Tax
Revenue Revolving A Increment B
Bonds of Bonds of Bonds of
2002 2002 2002 Total
ASSETS
Cash and investments $ 344,870 $ 96,889 $ 134,549 $ 2,405,738
Taxes receivable 30,559 3,334 50,437
Special Assessments receivable 793,185
Accounts receivable
Rehabilitation loans receivable -
Accrued interest receivable 969 272 378 6,754
Due from other funds _
Due from other governments -
Advance to other funds
Long term loans receivable -
Restricted cash and investments 31 31
Total Assets $ 376,429 $ 100,495 $ 134,927 $ 3,256,145
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ $
Due to other funds -
Deferred revenue 27,524 3,003 837,271
Advance from other funds - -
Total Liabilities 27,524 3,003 837,271
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 348,905 97,492 134,927 2,418,874
Unreserved:
Designated -
Undesignated -
Total Fund Balances 348,905 97,492 134,927 2,418,874
Total Liabilities and Fund Balance $ 376,429 $ 100,495 $ 134,927 $ 3,256,145
72
CITY OF HOPKINS,MINNESOTA
8 of 8
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
Capital Project Funds
Total
Municipal Non-major
Park State Aid Governmental
Improvements Construction Total Funds
ASSETS
Cash and investments $ 93,718 $ 1,227,336 $ 1,321,054 $ 9,988,631
Taxes receivable - - - 109,760
Special Assessments receivable - - - 793,185
Accounts receivable 17,500 6,742 24,242 79,100
Rehabilitation loans receivable - - 453,211
Accrued interest receivable 272 7,635 7,907 32,821
Due from other funds - 1,485,504 1,485,504 1,576,933
Due from other governments - 325,002 325,002 414,845
Advance to other funds - - - 2,534,906
Long term loans receivable - - - 1,839,816
Restricted cash and investments - - 49,031
Total Assets $ 111,490 $ 3,052,219 $ 3,163,709 $ 17,872,239
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ 60,588 $ 60,588 $ 484,744
Due to other funds - 160,965 160,965 378,206
Deferred revenue - - 1,251,950
Advance from other funds - - - 2,988,887
Total Liabilities - 221,553 221,553 5,103,787
Fund balances:
Reserved for:
Restricted cash and investments - - - 49,000
Reserved for Rehab loans receivable - - - 453,211
Reserved for Tax Increment Districts - - - 2,775,997
Reserved for advance to other funds - - 2,534,906
Reserved for debt service - - 2,418,874
Unreserved:
Designated - 2,830,666 2,830,666 2,987,890
Undesignated 111,490 - 111,490 1,548,574
Total Fund Balances 111,490 2.830,666 2,942,156 12,768,452
Total Liabilities and Fund Balance $ 111,490 $ 3,052,219 $ 3,163,709 $ 17,872,239
73
CITY OF HOPKINS,MINNESOTA -
1 of 8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES -
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Special Revenue Funds
State Real Estate Hennepin
Chemical Economic Purchases County Art -
Assessment Development &Sales CDBG Center
Revenues
Property tax $ $ 101,437 $
Tax increment - - - -
Special assessments - -
Intergovernmental revenue 59,484 424,969 - 145,030 50,000
Fees,licenses and permits - - - -
Charges for services - 42,514 3,700 - 233,667
Fines - - -
Investment earnings - 18,884 1,569 - -
Other - 45,642 - 18,570
Total Revenues 59,484 633,446 5,269 145,030 302,237
Expenditures
Current:
General government -
Public safety 56,760 - - - -
Health and welfare -
Highways and streets - - -
Urban redevelopment and housing 624,557 73,653
Recreation - - 356,859
Capital outlay
Debt Service:
Principal retirement
Interest and fiscal fees -
Total Expenditures 56,760 624,557 73,653 356,859
Excess(deficiency)of revenues over
(under)expenditures 2,724 8,889 5,269 71,377 (54,622)
Other Financing Sources(Uses):
Operating transfers in - - - 61,000
Operating transfers out - (61,000) -
Total Other Financing Sources(Uses) (61,000) 61,000 -
Net change in fund balances 2,724 (52,111) 5,269 71,377 6,378
Fund Balance(Deficit)-January 1 13,981 3,061,571 60,705 108,380 (1,049,845)
Fund Balance(Deficit)-December 31 $ 16,705 $ 3,009,460 $ 65,974 $ 179,757 $ (1,043,467) -
74
CITY OF HOPKINS,MINNESOTA
2 of 8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Special Revenue Funds
Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment
District District District District District
Downtown Entertainment R.L.Johnson Sonoma Thermotech
Revenues
Property tax $ - $ $ - $ $
Tax increment 1,101,312 49,409 375,899 13,498 69,864
Special assessments
Intergovernmental revenue 17,566 - -
Fees, licenses and permits - -
Charges for services 14,391 - -
Fines -
Investment earnings 7,606 849 6,602 581 1,280
Other -
-• Total Revenues 1,140,875 50,258 382,501 14,079 71,144
Expenditures
Current:
General government - -
Public safety - -
Health and welfare - -
Highways and streets - -
Urban redevelopment and housing 9,044 185,278 195,722 931 135,310
Recreation - -
_ Capital outlay -
Debt Service:
Principal retirement
Interest and fiscal fees -
--� Total Expenditures 9,044 185,278 195,722 931 135,310
Excess(deficiency)of revenues over
(under)expenditures 1,131,831 (135,020) 186,779 13,148 (64,166)
Other Financing Sources(Uses):
Operating transfers in - - - -
Operating transfers out (1,065,452) - (219,000)
Total Other Financing Sources(Uses) (1,065,452) - (219,000) -
Net change in fund balances 66,379 (135,020) (32,221) 13,148 (64,166)
Fund Balance(Deficit)-January 1 982.537 187.889 225,152 (438,326) 64,819
Fund Balance(Deficit)-December 31 $ 1,048,916 $ 52,869 $ 192,931 $ (425,178) $ 653
75
CITY OF HOPKINS,MINNESOTA -
3of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES -
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Special Revenue Funds
Tax -
Tax Increment Tax Tax
Increment District Increment Increment
District Oaks of District District -
Diamond Labs Mainstreet Business Center Supervalu Para-Transit
Revenues
Property tax $ - $ - $ _ $ _ $ -
Tax increment 42,521 118,112 86,292 357,928
Special assessments -
Intergovernmental revenue - 13,980 - - 95,261
Fees,licenses and permits - _
Charges for services - _ 18,497
Fines - _
Investment earnings 661 4.220 1,276 65,063
Other - 21,505
Total Revenues 43,182 136,312 87,568 444,496 113,758
Expenditures
Current:
General government _
Public safety -
Health and welfare - 125,358
Highways and streets -
Urban redevelopment and housing 34,988 2,939 64,157 42,561
Recreation -
Capital outlay - - 762,169
Debt Service:
Principal retirement
Interest and fiscal fees - -
Total Expenditures 34,988 2,939 64,157 804,730 125,358
Excess(deficiency)of revenues over
(under)expenditures 8,194 133,373 23,411 (360,234) (11,600)
Other Financing Sources(Uses): -
Operating transfers in - - - - 11,600
Operating transfers out - (130,000) - (187,500)
Total Other Financing Sources(Uses) - (130,000) - (187,500) 11,600
Net change in fund balances 8,194 3,373 23,411 (547,734)
Fund Balance(Deficit)-January 1 14,208 181,978 15,212 2,881,380
Fund Balance(Deficit)-December 31 $ 22.402 $ 185,351 $ 38,623 $ 2,333,646 $
76
CITY OF HOPKINS,MINNESOTA
4of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Special Revenue Funds
Depot
Housing Section 8 Coffee
Rehab Parking Housing Cable TV House Total
Revenues
Property tax $ $ - $ - $ $ $ 101,437
Tax increment - - - 2,214,835
Special assessments - 18,000 - - - 18,000
Intergovernmental revenue 5,775 470 128,659 51,000 992,194
Fees,licenses and permits - - 138,431 - 138,431
_ Charges for services 42 33,993 - - 96,844 443,648
Fines 47,920 - - - 47,920
Investment earnings 24,680 7,205 2,431 6,365 149,272
Other 210 - - 31,825 117,752
Total Revenues 30,707 107,588 131,090 144,796 179,669 4,223,489
Expenditures
_ Current:
General government - - 103,512 103,512
Public safety - 66,891 - - - 123,651
Health and welfare 125,358
Highways and streets - 43,587 - - - 43,587
Urban redevelopment and housing 120,456 - 106,331 - - 1,595,927
Recreation - - - - 198,392 555,251
Capital outlay - - 2,567 - - 764,736
Debt Service:
Principal retirement
Interest and fiscal fees - - - -
Total Expenditures 120,456 110,478 108,898 103,512 198,392 3,312,022
Excess(deficiency)of revenues over
(under)expenditures (89,749) (2,890) 22,192 41,284 (18,723) 911,467
Other Financing Sources(Uses):
Operating transfers in - - - - 72,600
-' Operating transfers out - - - - (1,662,952)
Total Other Financing Sources(Uses) - - - - (1,590,352)
Net change in fund balances (89,749) (2,890) 22,192 41,284 (18,723) (678,885)
Fund Balance(Deficit)-January 1 1,109,843 295,483 78,317 291,896 1,127 8,086,307
Fund Balance(Deficit)-December 31 $ 1,020,094 $ 292,593 $ 100,509 $ 333,180 $ (17,596) $ 7,407,422
77
CITY OF HOPKINS,MINNESOTA
5 of 8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES _
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Debt Service Funds
Taxable
Redevelop. Redevelop. Redevelop. Taxable
Refunding Refunding C Refunding A Housing Redevelop.D
Bonds of Bonds of Bonds of Bonds of Bonds of
1992 1993 1993 1995 1996
Revenues
Property tax $ $ - $ $ $ _
Tax increment - -
Special assessments - - 98,611
Intergovernmental revenue -
Fees, licenses and permits -
Charges for services - - - -
Fines - -
Investment earnings 357 3,342 271 2,052 553 _
Other - -
Total Revenues 357 3,342 271 100,663 553
Expenditures
Current:
General government - - -
Public safety - - -
Health and welfare - -
Highways and streets - -
Urban redevelopment and housing - -
Recreation - - -
Capital outlay - - -
Debt Service:
Principal retirement 148,138 630,000 140,000 45,000 55,000 _
Interest and fiscal fees 202,162 76,660 3,090 48,764 49,197
Total Expenditures 350,300 706,660 143,090 93,764 104,197
Excess(deficiency)of revenues over
(under)expenditures (349,943) (703,318) (142,819) 6,899 (103,644)
Other Financing Sources(Uses): --
Operating transfers in 350,000 714,000 1,452 104,000
Operating transfers out -
Total Other Financing Sources(Uses) 350,000 714,000 1,452 104,000 w
Net change in fund balances 57 10,682 (141,367) 6,899 356
Fund Balance(Deficit)-January 1 189,839 681,601 141,367 137,371 92,123
Fund Balance(Deficit)-December 31 $ 189,896 $ 692,283 $ $ 144,270 $ 92,479
78
CITY OF HOPKINS,MINNESOTA
6of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Debt Service Funds
Improvement Park and
Revolving Recreational
Tax Bonds of Refunding D
_ Increment Improvement 1992, Bonds of
Redevelop. Redevelop. Revolving Refunding 1993,Refunding
Bonds of Bonds of Bonds of Bonds of Bonds of
_ 1996 1997 1999 2001 2001
Revenues
Property tax $ - $ - $ 22,944 $ 57,457 $ 183,186
Tax increment -
Special assessments - - -
intergovernmental revenue - - -
Fees, licenses and permits - - -
_ Charges for services - - -
Fines - -
Investment earnings 270 1,470 1,523 1,886 675
Other - - -
Total Revenues 270 1,470 24,467 59,343 183,861
Expenditures
_ Current:
General government - - -
Public safety - - - -
Health and welfare - - - -
-- Highways and streets - - - -
Urban redevelopment and housing - - - -
Recreation - - - -
Capital outlay - - - -
Debt Service:
Principal retirement - 135,000 75,000 140,000 160,000
Interest and fiscal fees 28,800 81,715 30,996 23,660 40,543
Total Expenditures 28,800 216,715 105,996 163,660 200,543
Excess(deficiency)of revenues over
(under)expenditures (28,530) (215,245) (81,529) (104,317) (16,682)
Other Financing Sources(Uses):
Operating transfers in 26,000 219,000 75,000 85,000
- Operating transfers out - -
Total Other Financing Sources(Uses) 26,000 219,000 75,000 85,000
Net change in fund balances (2,530) 3,755 (6,529) (19,317) (16,682)
Fund Balance(Deficit)-January 1 26,854 209,429 141,090 209,098 173,454
Fund Balance(Deficit)-December 31 $ 24,324 $ 213,184 $ 134,561 $ 189,781 $ 156,772
79
CITY OF HOPKINS,MINNESOTA
7of8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES .•
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Debt Service Funds
HRA Lease Improvement Tax
Revenue Revolving A Increment B
Bonds of Bonds of Bonds of -
2002 2002 2002 Total
Revenues
Property tax $ 522,995 $ 57,054 $ $ 843,636 _
Tax increment - - -
Special assessments - - - 98,611
Intergovernmental revenue - - - -
Fees, licenses and permits - - - -
Charges for services - - - -
Fines - - - -
Investment earnings 4,183 1,073 1,323 18,978 r.
Other - - - -
Total Revenues 527,178 58,127 1,323 961,225
Expenditures r..
Current:
General government - - -
Public safety
Health and welfare - - -
Highways and streets - - - -
Urban redevelopment and housing - - - -
Recreation
Capital outlay - - - -
Debt Service:
Principal retirement - - 1,528,138 ..
Interest and fiscal fees 307,393 18,854 64,583 976,417
Total Expenditures 307,393 18,854 64,583 2,504,555
Excess(deficiency)of revenues over
(under)expenditures 219,785 39,273 (63,260) (1,543,330)
Other Financing Sources(Uses): ..
Operating transfers in 58,219 187,500 1,820,171
Operating transfers out -
Total Other Financing Sources(Uses) 58.219 187,500 1,820,171 `
Net change in fund balances 219,785 97,492 124,240 276,841
Fund Balance(Deficit)-January 1 129,120 - 10,687 2,142,033
Fund Balance(Deficit)-December 31 $ 348,905 $ 97,492 $ 134,927 $ 2,418.874
80
CITY OF HOPKINS,MINNESOTA
8 of 8
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2003
Capital Project Funds
Total
Municipal Non-major
Park State Aid Governmental
Improvements Construction Total Funds
Revenues
Property tax $ - $ - $ - $ 945,073
Tax increment - - - 2,214,835
-. Special assessments - 116,611
Intergovernmental revenue 764,138 764,138 1,756,332
Fees,licenses and permits - - 138,431
Charges for services 20,500 - 20,500 464,148
.•, Fines - - - 47,920
Investment earnings 3,145 7,745 10,890 179,140
Other 8,885 8,885 126,637
Total Revenues 32,530 771,883 804,413 5,989,127
Expenditures
Current:
General government - - - 103,512
Public safety - - - 123,651
Health and welfare - - - 125,358
Highways and streets - - - 43,587
Urban redevelopment and housing - - - 1,595,927
Recreation - - - 555,251
Capital outlay 120,162 506,702 626,864 1,391,600
Debt Service:
Principal retirement - 1,528,138
Interest and fiscal fees - - - 976,417
Total Expenditures 120,162 506,702 626,864 6,443,441
Excess(deficiency)of revenues over
(under)expenditures (87,632) 265,181 177,549 (454,314)
Other Financing Sources(Uses):
Operating transfers in - - - 1,892,771
Operating transfers out - - - (1,662,952)
Total Other Financing Sources(Uses) - - - 229,819
Net change in fund balances (87,632) 265,181 177,549 (224,495)
Fund Balance(Deficit)-January 1 199,122 2,565,485 2,764,607 12,992,947
Fund Balance(Deficit)-December 31 $ 111,490 $ 2,830,666 $ 2,942,156 $ 12,768,452
81
Y
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 31,2003
Variance with
final budget —
Budget Amounts positive
Original Final Actual (negative)
Revenues: _
Intergovernmental revenue:
State grant $ 59,545 $ 60,985 $ 59,484 $ (1,501)
Expenditures:
Salaries and employee benefits 25,545 25,421 32,089 (6,668)
Materials, supplies and services 34,000 31,840 24,671 7,169 _
Total Expenditures 59,545 57,261 56,760 501
Net change in fund balance - 3,724 2,724 (1,000)
Fund Balance-January 1 13,981 13,981 13,981 -
Fund Balance-December 31 $ 13,981 $ 17,705 $ 16,705 $ (1,000)
82 —
CITY OF HOPKINS,MINNESOTA
ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
General property taxes $ 106,000 $ 106,000 $ 101,437 $ (4,563)
Intergovernmental:
Metropolitan grant - 415,891 424,969 9,078
Charges for services 70,000 70,000 42,514 (27,486)
_ Investment earnings 25,000 25,000 18,884 (6,116)
Other 12,000 12,000 45,642 33,642
Total Revenues 213,000 628,891 633,446 4,555
Expenditures:
Salaries and employee benefits 140,956 140,272 147,471 (7,199)
Materials,supplies and services 102,330 555,933 544,932 11,001
Total 243,286 696,205 692,403 3,802
Less expenditures charged to other activities (58,500) (58,500) (67,846) 9,346
Net 184,786 637,705 624,557 13,148
Other Financing Uses:
Transfer to Art Center Fund (61,000) (61,000) (61,000) -
Net change in fund balance (32,786) (69,814) (52,111) 17,703
Fund Balance-January 1 3,061,571 3,061,571 3,061,571 -
Fund Balance-December 31 $ 3,028,785 $ 2,991,757 $ 3,009,460 $ 17,703
83
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, 2003
Variance with
Original and final budget
Final positive
Budget Actual (negative) _
Revenues:
Charges for services $ 3,700 $ 3,700 $ -
Investment earnings 2,300 1,569 (731) _
Total Revenues 6,000 5,269 (731)
Expenditures: - - -
Net change in fund balance 6,000 5,269 (731)
Fund Balance -January 1 60,705 60,705 -
Fund Balance -December 31 $ 66,705 $ 65,974 $ (731)
84
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, 2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Intergovernmental:
State grant(Para-Transit) $ 95,261 $ 95,261 $ 95,261 $ -
Charges for services 20,500 20,500 18,497 (2,003)
Total Revenues 115,761 115,761 113,758 (2,003)
Expenditures:
Salaries and employee benefits 15,029 14,956 13,616 1,340
Materials, supplies and services 116,685 116,640 111,742 4,898
Total Expenditures 131,714 131,596 125,358 6,238
Other Financing Sources:
Transfer from the General Fund 15,953 15,953 11,600 (4,353)
Net change in fund balance - 118 (118)
Fund Balance- January 1 - - -
Fund Balance - December 31 $ - $ 118 $ - $ (118)
85
CITY OF HOPKINS,MINNESOTA
HOUSING REHAB SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL _
Year Ended December 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Intergovernmental:
State grants $ - $ - $ 5,775 $ 5,775
Charges for services - - 42 42
Investment earnings 45,000 45,000 24,680 (20,320)
Other 100 100 210 110
Total Revenues 45,100 45,100 30,707 (14,393)
Expenditures:
Salaries and employee benefits 54,192 53,929 56,684 (2,755)
Materials, supplies and services 31,881 68,954 63,772 5,182
Total Expenditures 86,073 122,883 120,456 2,427
Net change in fund balance (40,973) (77,783) (89,749) (11,966)
Fund Balance-January 1 1,109,843 1,109,843 1,109,843 -
Fund Balance-December 31 $ 1,068,870 $ 1,032,060 $ 1,020,094 $ (11,966)
86
CITY OF HOPKINS, MINNESOTA
PARKING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2003
Variance with
"- final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Special assessments $ 18,000 $ 18,000 $ 18,000 $ -
_ Intergovernmental:
Federal grants - - 470 470
Court fines 40,000 40,000 47,920 7,920
Charges for services 32,000 32,000 33,993 1,993
Investment earnings 13,000 13,000 7,205 (5,795)
Total Revenues 103,000 103,000 107,588 4,588
Expenditures:
Salaries and employee benefits 66,326 66,004 70,261 (4,257)
Materials, supplies and services 58,491 47,428 40,217 7,211
Capital outlay:
Other improvements 15,000 - - -
Total Expenditures 139,817 113,432 110,478 2,954
Net change in fund balance (36,817) (10,432) (2,890) 7,542
Fund Balance-January 1 295,483 295,483 295,483 -
Fund Balance-December 31 $ 258,666 $ 285,051 $ 292,593 $ 7,542
87
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, 2003
Variance with
final budget
Budget Amount positive -
Original Final Actual (negative)
Revenues:
Intergovernmental: '
Federal - Section 8 $ 110,000 $ 125,000 $ 128,659 $ 3,659
Investment earnings 2,000 2,000 2,431 431
Total Revenues 112,000 127,000 131,090 4,090
Expenditures: _
Salaries and employee benefits 58,770 65,485 65,009 476
Materials, supplies and services 20,355 27,710 41,322 (13,612)
Capital outlay 3,500 3,500 2,567 933 _
Total Expenditures 82,625 96,695 108,898 (13,136)
Net change in fund balance 29,375 30,305 22,192 (8,113)
Fund Balance - January 1 78,317 78,317 78,317 -
Fund Balance- December 31 $ 107,692 $ 108,622 $ 100,509 $ (8,113)
88
CITY OF HOPKINS, MINNESOTA
CABLE TV SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Franchise fees $ 141,600 $ 141,600 $ 138,431 $ (3,169)
Investment earnings 12,250 12,250 6,365 (5,885)
Total Revenues 153,850 153,850 144,796 (9,054)
Expenditures:
Salaries and employee benefits 59,146 58,859 53,020 5,839
Materials, supplies and services 36,687 36,006 50,492 (14,486)
Capital outlay 40,000 40,000 40,000
Total Expenditures 135,833 134,865 103,512 31,353
Excess of revenues over expenditures 18,017 18,985 41,284 22,299
_ Other Financing Uses:
Transfer to Art Center Fund (88,000) (88,000) 88,000
Net change in fund balance (69,983) (69,015) 41,284 110,299
Fund Balance-January 1 291,896 291,896 291,896 -
Fund Balance -December 31 $ 221,913 $ 222,881 $ 333,180 $ 110,299
89
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 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Intergovernmental:
State grant $ 50,000 $ 50,000 $ 51,000 $ 1,000
Charges for services 126,000 126,000 96,844 (29,156)
Contributions 50,000 50,000 31,825 (18,175)
Total Revenues 226,000 226,000 179,669 (46,331)
Expenditures:
Salaries and employee benefits 118,789 118,213) 118,064 149
Materials, supplies and services 87,563 87,450 80,328 7,122 _
Capital outlay 4,000 4,000 - 4,000
Total Expenditures 210,352 209,663 198,392 11,271
Net change in fund balance 15,648 16,337 (18,723) (35,060)
Fund Balance- January 1 1,127 1,127 1,127 -
Fund Balance-December 31 $ 16,775 $ 17,464 $ (17,596) $ (35,060)
90
CITY OF HOPKINS,MINNESOTA
ART CENTER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Intergovernmental:
State grant $ 50,000 $ 50,000 $ 50,000 $ -
Charges for services 212,900 212,900 233,667 20,767
Interest earnings - - - -
Other - - 18,570 18,570
Total Revenues 262,900 262,900 302,237 39,337
Expenditures:
Salaries and employee benefits 262,928 261,653 255,632 6,021
Materials, supplies and services 107,547 107,288 101,227 6,061
Capital outlay - - -
Total Expenditures 370,475 368,941 356,859 12,082
Other Financing Sources
Transfer from other funds 149,000 149,000 61,000 (88,000)
Net change in fund balance 41,425 42,959 6,378 (36,581)
Fund Balance-January 1 (1,049,845) (1,049,845) (1,049,845) -
Fund Balance-December 31 $ (1,008,420) $ (1,006,886) $ (1,043,467) $ (36,581)
91
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 31,2003
Variance with
final budget
Budget Amount positive —
Original Final Actual (negative)
Revenues:
Taxes:
Tax increment $ 975,000 $ 975,000 $ 1,101,312 $ 126,312
Intergovernmental
Market value aid credit - - 17,566
Investment earnings 30,000 30,000 7,606 (22,394)
Charges for services - - 14,391 14,391
Total Revenues 1,005,000 1,005,000 1,140,875 103,918 —
Expenditures:
Materials, supplies and services - - 9,044 (9,044) '-
Other Financing Uses:
Transfer to Bonds of 1992 - Refunding (350,000) (350,000) (350,000)
Transfer to Bonds of 1993A - Refunding - - (1,452) (1,452)
Transfer to Bonds of 1993C-Refunding (751,000) (782,000) (714,000) (68,000)
Total Other Financing Uses (1,101,000) (1,132,000) (1,065,452) (69,452)
Net change in fund balance (96,000) (127,000) 66,379 193,379
Fund Balance -January 1 982,537 982,537 982,537 -
Fund Balance -December 31 $ 886,537 $ 855,537 $ 1,048,916 $ 193,379
92
CITY OF HOPKINS, MINNESOTA
TAX INCREMENT 1.2 -ENTERTAINMENT CENTER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2003
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax increment $ 45,500 $ 49,409 $ 3,909
Investment earnings 800 849 49
-- Total Revenues 46,300 50,258 3,958
Expenditures:
Materials,supplies and services 4,500 185,278 (180,778)
Capital outlay:
Construction - - -
Public improvements 44,888 - 44,888
Total Expenditures 49,388 185,278 (135,890)
Net change in fund balance (3,088) (135,020) (131,932)
Fund Balance-January 1 187,889 187,889 -
Fund Balance-December 31 $ 184,801 $ 52,869 $ (131,932)
93
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 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Taxes:
Tax increment $ 360,000 $ 360,000 $ 375,899 $ 15,899
Investment earnings 9,000 9,000 6,602 (2,398)
Total Revenues 369,000 369,000 382,501 13,501
Expenditures: _
Materials, supplies and services 218,000 193,588 195,722 (2,134)
Capital outlay:
Site improvements-R.L. Johnson - - - - —
Total Expenditures 218,000 193,588 195,722 (2,134)
Other Financing Uses —
Transfer to debt service, 1997 -HRA (218,000) (218,000) (219,000) (1,000)
Net change in fund balance (67,000) (42,588) (32,221) 10,367
Fund Balance -January 1 225,152 225,152 225,152 -
Fund Balance -December 31 $ 158.152 $ 182,564 S 192,931 $ 10,367
94
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 31,2003
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax increment $ 8,570 $ 13,498 $ 4,928
Investment earnings - 581 581
Other 10,450 - (10,450)
19,020 14,079 (4,941)
Expenditures:
Materials,supplies and services 550 931 (381)
Net change in fund balance 18,470 13,148 (5,322)
.. Fund Balance(Deficit)- January 1 (4.38,326) (438,326) -
Fund Balance(Deficit)- December 31 $ (419,856) $ (425,178) $ (5,322)
95
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 31,2003
Variance with
final budget
Budget Amount positive —
Original Final Actual (negative)
Revenues:
Taxes: —
Tax increment $ 66,500 $ 66,500 $ 69,864 $ 3,364
Investment earnings 5,000 5,000 1,280 (3,720)
Total Revenues 71,500 71,500 71,144 (356)
Expenditures:
Materials, supplies and services 12,500 12,500 135,310 (122,810) —
Capital outlay:
Site improvements - 26,000 - 26,000 —
Total Expenditures 12,500 38,500 135,310 (96,810)
Other Financing Uses: —
Transfer to PIR fund (48,611) (48,611) - 48,611
Net change in fund balance 10,389 (15,611) (64,166) (48,555) —
Fund Balance-January 1 64,819 64,819 64,819 -
Fund Balance- December 31 $ 75,208 $ 49,208 $ 653 $ (48,555)
96
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 31,2003
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax increment $ 38,500 $ 42,521 $ 4,021
Investment earnings 870 661 (209)
Total Revenues 39,370 43,182 3,812
Expenditures:
Materials, supplies and services 36,532 34,988 1,544
_ Net change in fund balance 2,838 8,194 5,356
Fund Balance-January 1 14,208 14,208 -
Fund Balance-December 31 $ 17,046 $ 22,402 $ 5,356
97
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 31,2003
Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Taxes —
Tax increment $ 103,000 $ 103,000 $ 118,112 $ 15,112
Intergovernmental
Market value aid credit - - 13,980 13,980
Investment earnings 7,500 7,500 4,220 (3,280)
Total Revenues 110,500 110,500 136,312 25,812
Expenditures
Materials, supplies and services 2,484 3,484 2,939 545 —
Other Financing Uses:
Operating transfer out for debt service (130,000) (130,000) (130,000) -
Net change in fund balance (21,984) (221,984) 37373 26,357
Fund Balance-January 1 181,978 181,978 181,978 -
Fund Balance-December 31 $ 159,994 $ 158,994 $ 185,351 $ 26,357 —
98
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 31,2003
_ Variance with
final budget
Budget Amount positive
Original Final Actual (negative)
Revenues:
Taxes:
Tax increment $ 60,810 $ 60,810 $ 86,292 $ 25,482
Investment earnings 300 300 1,276 976
Total Revenues 61,110 61,110 87,568 26,458
Expenditures:
Materials,supplies and services 44,035 64,035 64,157 (122)
Net change in fund balance 17,075 (2,925) 23,411 26,336
Fund Balance-January 1 15,212 15,212 15,212 -
Fund Balance-December 31 $ 32,287 $ 12,287 $ 38,623 $ 26,336
99
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 31,2003
Variance with
Original and final budget
Final positive
Budget Actual (negative)
Revenues:
Taxes:
Tax Increments $ 375,000 $ 357,928 $ (17,072)
Investment earnings 10,000 65,063 55,063
Miscellaneous - 21,505 21,505
385,000 444,496 59,496
Expenditures:
Materials,supplies and services 43,940 42,561 1,379
Capital outlay: _
Land - 107,339 (107,339)
Streets and Sidewalks 2,600,000 377,285 2,222,715
Site Improvements 400,000 277,545 122,455 —
Total Expenditures 3,043,940 804,730 2,239,210
Other Financing Sources(Uses): —
Transfer out for debt service (195,000) (187,500) 7,500
Net change in fund balance (2,853,940) (547,734) 2,306,206 —
Fund Balance-January 1 2,881,380 2,881,380 -
Fund Balance-December 31 $ 27,440 $ 2,333,646 $ 2,306,206
100
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-
supporting activities of governmental units which render services to the
general public on a user charge basis. Records are maintained on the
accrual basis of accounting.
The Authority for these types of funds is derived from Section 11 .01 of the
City Charter which allows for utility or other public service enterprise funds.
The City has seven Enterprise Funds, four of which are considered to be
nonmajor, they are:
Refuse Utility Fund
Pavilion/Ice Arena Fund
Skate Park Fund
Housing Authority Fund
101
CITY OF HOPKINS,MINNESOTA -
STATEMENT OF NET ASSETS
NONMAJOR PROPRIETARY FUNDS
December 31,2003
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 $ 573,997 $ 49,075 $ 737 $ 150,421 $ 774,230
Accounts receivable 36 37,816 - 373 38,225
Accrued interest receivable 1,615 139 - - 1,754 -
Due from other funds - - - 2,700 2,700
Inventory 987 - - - 987
Prepaid expenses - - - 18,708 18,708
Total current assets 576,635 87,030 737 172,202 836,604 -
Noncurrent assets
Capital Assets: --
Land - - 157,300 157,300
Buildings and structures 302,727 2,379,434 30,382 2,978,717 5,691,260
Distribution system 2,584 52,726 - - 55,310 -
Machinery and equipment 433,521 90,622 98,873 29,564 652,580
Construction in progress - 707,412 - 209,771 917,183
Less accumulated depreciation (347,028) (670,773) (12,152) (1,829,554) (2,859,507)
Total noncurrent assets 391,804 2,559,421 117,103 1,545,798 4,614,126 -
Total Assets 968,439 2,646,451 117,840 1,718,000 5,450,730
LIABILITIES
Current Liabilities:
Accounts payable 34,412 102,314 8 37,665 174,399 -
Due to other funds - - 21,000 - 21,000
Compensated absences payable-cur. 2,225 1,655 - - 3,880
Deferred revenue - 1,147 - - 1,147
Total Current Liabilities 36,637 105,116 21,008 37,665 200,426
Noncurrent Liabilities:
Compensated absences payable 17,529 14,083 - 11,968 43,580
Advance from other funds - 649,215 - - 649,215
Total Noncurrent Liabilities 17,529 663,298 - 11,968 692,795
Total Liabilities 54,166 768,414 21,008 49,633 893,221
NET ASSETS
Invested in capital assets,
net of related debt 391,804 2,559,421 117,10-31 1,545,798 4,614,126
Unrestricted 522,469 (681,384) (20,271) 122,569 (56,617)
Total net assets $ 914,273 $ 1,878,037 $ 96,832 $ 1,668,367 $ 4,557,509 -
102
CITY OF HOPKINS,MINNESOTA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For the Year Ended December 31,2003
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
Refuse Pavilion/ Skate Housing Proprietary Funds
Utility Ice Arena Park Authority Total
Operating revenues:
Charges for services $ 515,930 $ 263,640 $ 5,655 $ 384,403 $ 1,169,628
Other - 11,848 - 43,092 54,940
Total Operating Revenues 515,930 275,488 5,655 427,495 1,224,568
Operating expenses:
Cost of sales and service 521,580 257,990 14,354 261,004 1,054,928
Administration 99,763 13,786 807 64,573 178,929
Depreciation 33,378 67,735 3,038 123,092 227,243
Total Operating Expenses 654,721 339,511 18,199 448,669 1,461,100
Operating income(loss) (138,791) (64,023) (12,544) (21,174) (236,532)
Nonoperating revenues(expenses):
Investment earnings 13,378 393 - - 13,771
Intergovernmental grants 23,394 - - 280,956 304,350
Total nonoperating revenues
(expenses) 36,772 393 - 280,956 318,121
Income(loss)before contributions (102,019) (63,630) (12,544) 259,782 81,589
Capital contributions - 98,873 98,873
Change in net assets (102,019) (63,630) 86,329 259,782 180,462
Total net assets-beginning 1,016,292 1,941,667 10,503 1,408,585 4,377,047
Total net assets-ending $ 914,273 $ 1,878,037 $ 96,832 $ 1,668,367 $ 4,557,509
103
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For the Year Ended December 31,2003
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 $ 547,205 $ 270,268 $ 5,655 $ 427,701 $ 1,250,829
Internal activity-payments to other funds - - (11,000) (33,291) (44,291)
Internal activity-payments from other funds - - 21,000 - 21,000
Payments to suppliers (279,974) (35,299) (4,440) (263,013) (582,726)
Payments to employees (239,117) (177,548) (10,354) (60,055) (487,074)
Payments for interfund services used (112,653) (13,296) (697) - (126,646)
Net cash provided by(used)by operating activities (84,539) 44,125 164 71,342 31,092
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 23,394 - - 280,956 304,350
Net cash provided by noncapital and related financing activities 23,394 - - 280,956 304,350
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (7,286) (5,716) - (327,033) (340,035)
Construction of capital assets - (707,412) - - (707,412)
Advance from Equipment fund 649,215 - - 649,215
Net cash used by capital and related financing activities (7,286) (63,913) - (327,033) (398,232)
Cash Flows From Investing Activities 15,675 679 (53) - 16,301
Net increase(decrease)in cash and investments (52,756) (19,109) 111 25,265 (46,489)
Cash and Investments-January 1 626,753 68,184 626 125,156 820,719
Cash and Investments-December 31 $ 573,997 $ 49,075 $ 737 $ 150,421 $ 774,230
104
I I I I I I I I I I I I I I I I I I I
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS,(CONT.)
For the Year Ended December 31,2003
Reconciliation of operating loss to net
cash provided by(used)by operating activities:
Operating loss $ (138,791) $ (64,023) $ (12,544) $ (1,727,636) $ (1,942,994)
Adjustments to reconcile operating loss to net cash provided
by(used)by operating activities:
Depreciation expense 33,378 67,735 3,038 1,829,554 1,933,705
(Increase)decrease in:
Accounts receivable 31,275 (4,733) - 1,932 28,474
Due from other funds - - - (2,700) (2,700)
Inventory (382) - - (382)
Prepaid expense - - - (10,862) (10,862)
Accounts,compensated absences and accrued interest payable 2,721 44,967 (330) 14,345 61,703
Due to other funds - - 10,000 (33,291) (23,291)
Due to other governments (12,740) (308) - (13,048)
Deferred revenue 487 - - 487
Cash Provided by(used)by Operating Activities $ (84,539) $ 44,125 $ 164 $ 71,342 $ 31,092
105
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.
106 _
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND
STATEMENT OF NET ASSETS
December 31,2003
Equipment Insurance Employee Totals
Replacement Risk Benefits 2003
ASSETS
Current assets:
Cash and investments $ 1,553,644 $ 91,940 $ 533,028 $ 2,178,612
Due from other funds - - 101,112 101,112
Advance to other funds 649,215 - - 649,215
_ Accrued interest receivable 3,723 259 13,306 17,288
Total current assets 2,206,582 92,199 647,446 2,946,227
Property and equipment
Machinery and equipment 4,828,421 - - 4,828,421
Total property and equipment 4,828,421 - - 4,828,421
Less accumulated depreciation (3,446,345) - - (3,446,345)
Net property and equipment 1,382,076 - - 1,382,076
Total Assets 3,588,658 92,199 647,446 4,328,303
LIABILITIES
Current Liabilities:
Accounts payable 19,593 - - 19,593
Compensated absences payable - - 634,140 634,140
Total Liabilities 19,593 - 634,140 653,733
NET ASSETS
Invested in capital assets, net of related debt 1,382,076 - - 1,382,076
Unrestricted 2,186,989 92,199 13,306 2,292,494
Total net assets $ 3,569,065 $ 92,199 $ 13,306 $ 3,674,570
107
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND
STATEMENT OF REVENUES,EXPENSES,AND -
CHANGES IN RETAINED EARNINGS
Year Ended December 31,2003 -
Equipment Insurance Employee -
Replacement Risk Benefits Total
Operating revenues:
Charges for services $ 259,136 $ 47,469 $ 634,140 $ 940,745 -
Operating expenses(excluding depreciation): -
Materials, supplies and services 18,768 40,082 634,140 692,990
Operating income before depreciation 240,368 7,387 - 247,755 -
Depreciation expense 312,932 - - 312,932
Operating income (72,564) 7,387 - (65,177)
Nonoperating revenue: '-
Investment earnings 21,457 1,923 13,306 36,686
Gain on sale of property and equipment 4,335 - - 4,335
Total nonoperating revenues 25,792 1,923 13,306 41,021 -
Net Income (46,772) 9,310 13,306 (24,156)
Transfer in - - 559,404 559,404
Change in net assets (46,772) 9,310 572,710 535,248 -
Fund Equity:
Total net assets-January 1,as restated 3,615,837 82,889 (559,404) 3,139,322 -
Total net assets - December 31 $ 3,569,065 $ 92,199 $ 13,306 $ 3,674,570
108
CITY OF HOPKINS,MINNESOTA
STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2003
Equipment Insurance Employee
Replacement Risk Benefits Totals
Cash Flows from Operating Activities
Receipts from customers and users $ - $ 47,469 $ - $ 47,469
Receipts from interfund services provided 259,554 - 533,028 792,582
Payments to suppliers 3,839 (40,866) - (37,027)
Payments for interfund services used (3,014) (51) - (3,065)
Net cash provided by operating activities 260,379 6,552 533,028 799,959
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (81,145) - - (81,145)
Proceeds from Sales of capital assets 4,335 4,335
Advance to Pavilion for Mezzanine construction (649,215) - - (649,215)
Net cash used by capital and related
financing activities (726,025) (726,025)
Cash Flows From Investing Activities
Investment earnings 26,837 2,183 29,020
_ Net increase(decrease)in cash and cash equivalents (438,809) 8,735 533,028 102,954
Cash and Cash Equivalents-January 1 1,992,453 83,205 - 2,075,658
Cash and Cash Equivalents-December 31 $ 1,553,644 $ 91,940 $ 533,028 $ 2,178,612
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities:
Operating income(loss) $ (72,564) $ 7,387 $ $ (65,177)
Adjustments to reconcile operating income(loss)to
net cash provided by operating activities:
Depreciation expense 312,932 - 312,932
(Increase)decrease in:
_ Accounts receivable 418 - 418
Due from other funds - (101,112) (101,112)
Accounts,compensated absences and accrued interest
payable 19,593 (835) 634,140 652,898
Cash Provided by Operating Activities $ 260,379 $ 6,552 $ 533,028 $ 799,959
109
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110
III
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CITY OF HOPKINS,MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
2003
(Unaudited)
Highways Urban Interest on
Fiscal General Public Health and and Redevelopment Culture and Long-Tenn
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
*Government-wide expenses are not available for years prior to 2003.
112
Table I
Storm Housing and
Water Sewer Sewer Refuse Pavilion/ Skate Redevelopment
utility Utili Utili U!illfty Ice Arena Park Authori Total
$ 1,075,399 $ 1,459,743 $ 409,282 $ 654,721 $ 339,511 S 18,199 $ 2,155,131 $ 18,883,347
—
113
Table II
CITY OF HOPKINS,MINNESOTA
GOVERNMENT-WIDE REVENUES
2003
(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 Program Earnings Total
2003 $ 6,717,000 $ 1,496,107 $ 1,138,389 $ 6,886,774 $ 2,214,833 $ 691,438 $ 453,412 $ 19,597,953
*Government-wide revenues are not available for years prior to 2003
114
1 1 1 1 1 1 I I 1 I ( 1 1 1 1 I I I 1
Table III
CITY OF HOPKINS, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Years 1994 Through 2003
(Amounts expressed in thousands)
(Unaudited)
Urban
Fiscal General Public Health and Highways Redevelopment Culture and Debt Capital
Year Government Safejy Welfare and Streets and Housing Recreation Service Outlay Total
1994 $ 1,610 $ 2,481 - $ 1,574 $ 956 $ 113 - $ 4,717 $ 11,451
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
115
Table IV
CITY OF HOPKINS, MINNESOTA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Years 1994 Through 2003
(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
1994 $ 3,847 $ 1,343 347 $ 2,984 $ 612 (1;$ 992 $ 264 $ 114 $ 10,503
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
(1) Includes use of money and property
(2) Includes Oaks of Mainstreet real estate sales.
116
1 1 I 1 l I I I 1 I I I I I + + I I I
Table V
CITY OF HOPKINS, MINNESOTA
— PROPERTY TAX LEVIES AND COLLECTIONS
Years 1994 Through 2003
(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
1994 $ 3,987,216 $ 3,882,651 97.4% $ (36,765) S 3,845,886 $ 0 96.5%
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%
(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
117
Table VI
CITY OF HOPKINS,MINNESOTA
TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY
Levy Years 1994 Through 2003 -
(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
r
1994 $ 15,314 $ 591,809 $ 269 $ 5,627 $ 15,583 $ 597,436 2.6
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
118
Table VII
CITY OF HOPKINS,MINNESOTA
PROPERTY TAX RATES -
DIRECT AND OVERLAPPING GOVERNMENTS
Years 1994 Through 2003
(Unaudited)
Payable
Fiscal Metro
Year Ci ' School Coun Council Other 1 Total
1994 27.50 67.34 37.44 6.23 1.28 146.02
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
(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.
119
Table VIII
CITY OF HOPKINS, MINNESOTA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Years 1994 Through 2003
(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
1994 $491,094 $462,454 94.2 $6,924 $78,909 $86,859 $3,081,957
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 87,3 83 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
120
I ( ( ( ( ( ( ( I I I I I I I i 1?
Table IX
CITY OF HOPKINS, MINNESOTA
RATIO OF NET BONDED DEBT
TO TAX CAPACITY VALUE AND NET BONDED DEBT PER CAPITA
Pay Years 1994 Through 2003
(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
1994 16,534 $ 13,100,726 $ 14,701,243 $ 1,019,541 $ 2,992,700 3,160,866 7,528,136 57.46% 455
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
(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.
121
CITY OF HOPKINS, MINNESOTA Table X
COMPUTATION OF LEGAL DEBT MARGIN —
December 31, 2003
(Unaudited) —
MARKET VALUE $ 1,066,569,300 _*
DEBT LIMIT 2% OF MARKET VALUE(Note 8) $ 21,331,386
TOTAL BONDED DEBT $ 35,573,056 —
DEDUCTIONS (Note B):
Tax Increment Bonds $ 6,733,056 —
Revenue Bonds 5,710,000
Housing Improvement Bonds 5,900,000
Special Assessment Bonds 2,275,000 —
20,618,056
Amount Available in Debt Service Funds 3,025,529
Total Deductions 23,643,585
TOTAL DEBT APPLICABLE TO DEBT LIMIT 11,929,471 —
LEGAL DEBT MARGIN $ 9,401,915
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 IV. —
122
Table XI
CITY OF HOPKINS, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 2003
(Unaudited)
Net General Percentage
Obligation Applicable City Share
Debt 1 to Ci of Debt
Direct Debt
City of Hopkins $ 6,539,505 100.00% $ 6,539,505
—" Overlapping Debt
Hennepin County 341,228,971 1.23 4,197,116
Independent School District#270 (Hopkins) 83,421,301 16.36 13,647,725
Independent School District 4283 49,139,426 0.43 211,300
Hennepin Suburban Park District 11,615,904 1.61 187,016
Metropolitan Council 128,486,881 0.99 1,272,020
Hennepin Regional RR Authority 48,112,294 1.23 591,781
Total Overlapping Debt 20,106,958
Total Direct and Overlapping Debt $ 26,646,463
Direct Overlapping Total
Debt Ratios Debt Debt Debt
Ratio of Debt Per Capita(17,559 Population) $372 $1,145 $1,518
Ratio of Debt to Tax Capacity Valuation
(after fiscal disparities)of$11,140,721(2) 58.70% 180.48% 239.18%
Ratio of Debt to Estimated Market Valuation
of$1,280,069,000 0.51% 1.57% 2.08%
(1) Excludes Revenue, Special Assessment and HRA Lease Revenue Bonds.
(2) Tax Capacity Values are based on payable 2003
Source: County Auditor
123
Table XII
CITY OF HOPKINS, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES --
Years 1994 Through 2003
(Unaudited)
Total Percentage
Total General of Debt
Debt Governmenal to General
Year Principal Interest Service Expenditures Expenditures
1994 $ 345,000 $ 229,346 $ 574,346 $ 12,917,144 4.4%
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
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.
124
Table XIII
CITY OF HOPKINS, MINNESOTA
REVENUE BOND COVERAGE
WATER AND STORM SEWER REVENUE BONDS
Years 1994 Through 2003
(Unaudited)
Net
Fiscal Gross Operating Revenue Debt Service Coverage
Year Revenue Expenses (1) Available Principal Interest Total Ratio
1994 $ 517,325 $ 67,007 $ 450,318 $ 110,000 $ 108,058 $ 218,058 2.06 to 1
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 I
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
(1)Excludes depreciation and debt expense.
125
Table XIV
CITY OF HOPKINS, MINNESOTA
DEMOGRAPHIC STATISTICS
Year 1994 Through 2003
(Unaudited)
(2) (3)
Fiscal (1) School % Unemployment —
Year Population Enrollment Rate*
1994 16,534 7,804 3.0% —
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% —
Sources:
(1) Metropolitan Council --
(2) School districts within Hopkins
(3) Minnesota Department of Labor and Industry
*Hennepin County
126
Table XV
CITY OF HOPKINS, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
Years 1994 Through 2003
(Amounts expressed in thousands)
(Unaudited)
(1) (1)
Commercial Residential (2)
Construction Construction Property Value
Fiscal Number of
Year Value Units Value Commercial Residential Nontaxable
1994 7,967 380 3,320 162,499 429,955 78,897
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
Sources:
(1) City Community Services Department
(2) County Assessor's Office
127
Table XVI
CITY OF HOPKINS, MINNESOTA
PRINCIPAL TAXPAYERS
December 31,2003 —
(Unaudited)
Amount of
Percentage Estimated
Tax of Total Tax Tax City
Taxpayer Type of Business Capacity Capaci1y Receives —
1. Super Valu Grocery Warehouses 1,054,250 7.51% $ 432,242
2. Duke Realty Office/Warehouses 282,420 2.01% 115,792 —
3. St. Therese Apartments 277,305 1.98% 155,290
4. Ramsgate Apartments Apartments 227,965 1.62% 127,660
5. Westside Village Apartments 194,870 1.39% 109,127 —
6. Greenfield(Phase I) Apartments 173,010 1.23% 96,885
7. Auburn North Townhouses 158,685 1.13% 88,863
8. Greenfield (Phase II) Apartments 158,310 1.13% 88,653 —
9. Edco Products, Inc. Office/Warehouse 131,884 0.94% 73,855
10. Rosewood West Apartments 126,990 0.90% 71,114
11. Gateway Foods Office/Warehouse 121,870 0.87% 49,966 —
12. Creekwood Estates Apartments 119,028 0.85% 66,655
13. Thermotech Office/Warehouse 111,710 0.80% 45,801
14. Christian Salvesen Warehouse 110,490 0.79% 45,300 _
15. Knollwood Towers West Apartments 108,255 0.77% 60,622
16. Buffalo Associates Bank/Office 100,250 0.71% 41,102
17. Oak Ridge Country Club Golf Course 85,150 0.61% 34,873 _
18. Reuter, Inc. Office/Warehouse 70,370 0.50% 28,851
19. Knox Lumber Retail 58,062 0.41% 23,805
20. Alliant Techsystems Office/Warehouse 52,422 0.37% 21,493
Total 3,723,296 26.53% $ 1,777,949
Total City 2003/2004 tax capacity= 14,033,663 100.00%
Notes:
1)Tax capacity is a percentage of total market value. For taxes payable in 2004 these class rates are —
1.5% 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 2003, not including
fiscal disparities and tax increment adjustments. —
3)The estimated tax is based on the tax rates for payable 2004.
128 _
_ Table XVII
CITY OF HOPKINS, MINNESOTA
MISCELLANEOUS STATISTICAL FACTS
December 31, 2003
— (Unaudited)
Dated of Incorporation November 27, 1893
Date of Adoption of City Charter December 2, 1947
Form of Government Council -Manager
Fiscal Year Begins January 1
_ Area of City 4.0 Square Miles
Miles of Streets and Alleys:
Trunk Highways 1.6
— County 6.3
City Streets 55.0
Alleys 9.9
Miles of Sewers:
Storm Sewers 21.4
Sanitary Sewers 43.4
Miles of Watermains 52.6
— Building Permits:
1994 457
1995 390
_ 1996 441
1997 886
1998 463
1999 587
— 2000 443
2001 498
2002 488
— 2003 498
Estimated Cost:
_ 1994 $11,286,814
1995 14,648,615
1996 18,391,797
1997 20,834,150
1998 11,692,315
1999 42,828,312
2000 17,051,981
_ 2001 17,070,262
2002 34,562,884
2003 40,363,863
129
Table XVII
CITY OF HOPKINS,MINNESOTA
MISCELLANEOUS STATISTICAL FACTS - CONTINUED
December 31, 2003
(Unaudited)
Fire Protection: —
Number of Stations 1
Number of Employees -Volunteer 39
Police Protection:
Number of Stations 1
Number of Employees 39
Parks:
City Parks 12
Playgrounds 1 —
Skating Rinks 18
Employees: —
Regular 107
Part Time 7
Elections: —
Registered Voters - last general election 8,830
Number of votes cast last general election 909
Election day registrations 45 —
Percentage of registered voters voting 10%
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
130