1998 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 , 1998
DEPARTMENT OF FINANCE
Lori Yager, Finance Director
MEMBER OF GOVERNMENT FINANCE OFFICERS' ASSOCIATION
OF THE UNITED STATES AND CANADA
TELEPHONE: (612) 935-8474
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1998
TABLE OF CONTENTS
Exhibit Page
I. INTRODUCTORY SECTION
City Officials 2
Administrative Organization Chart 3
Letter of Transmittal from the City Manager
and Finance Director 5
Certificate of Achievement for Excellence in
Financial Reporting 17
II. FINANCIAL SECTION
Independent Auditors' Report 19
A. General Purpose Financial Statements 21
Combined Balance Sheet- All Fund Types and
Account Groups A 22
Combined Statement of Revenues, Expenditures,
_ and Changes in Fund Balances -All
Governmental Fund Types A-1 24
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances - Budget and
Actual - General and Special Revenue Fund Types A-2 26
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - All
Proprietary Fund Types A-3 28
Combined Statement of Cash Flows - All
Proprietary Fund Types A-4 29
Notes to Financial Statements 31
Required Supplementary Information 49
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1998
Exhibit Page
B. Combining Individual Funds and Account
Groups Statements and Schedule
General Fund
Balance Sheet B 53 —
Statement of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual B-1 54
Schedule of Revenues - Budget and Actual B-2 55 —
Schedule of Expenditures - Budget and Actual B-3 56
.Special Revenue Funds
Combining Balance Sheet C 64
Combining Balance Sheet - Tax Increment Ca 66 —
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances C-1 68
Combining Statement of Revenues, Expenditures, and _
Changes in Fund Balances -Tax Increment Ca-1 70
Statements of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual: _
State Chemical Assessment Team Fund C-2 72
Economic Development Fund C-3 73
Real Estate Purchases and Sales Fund C-4 74 _
Para-Transit Fund C-5 75
Housing Rehab Fund C-6 76
Parking Fund C-7 77 _
Cable TV Fund C-8 78
Debt Service Funds _
Combining Balance Sheet D 80
Combining Statement of Revenues, Expenditures, _
and Changes in Fund Balance D-1 82
Capital Projects Funds —
Combining Balance Sheet E 86
Combining Statement of Revenues, Expenditures, and _
Changes in Fund Balance E-1 87
_ THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1998
ExhibitPaye
_ Enterprise Funds
Combining Balance Sheet F 90
_ Combining Statement of Revenues, Expenses, and
Changes in Retained Earnings F-1 92
Combining Statement of Cash Flows F-2 94
Internal Service Fund
Balance Sheet G 98
Statement of Revenues, Expenses, and
Changes in Retained Earnings G-1 99
Statement of Cash Flows G-2 100
Trust Funds
Balance Sheet H 102
Statement of Revenues, Expenditures, and H-1 103
Changes in Fund Balance
Account Groups
Schedule of General Fixed Assets I 106
Schedule of General Fixed Assets by Function
_ and Activity 1-1 107
Schedule of Changes in General Fixed Assets
by Function and Activity I-2 108
Statement of General Long-Term Debt J 109
Schedule Pagg
SECTION IIC
Supplemental Financial Schedules
Schedule of Bonds Payable 1 112
Schedule of Debt Service Requirements -All Funds 2 120
Schedule of Funding Available and Funds Required
for Debt Service 3 121
Schedule of Insurance in Force 4 122
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1998 —
Table Page
III. STATISTICAL SECTION
Governmental Fund Types -Expenditures by Function I 125
Governmental Fund Types -Revenues by Source II 126
Property Tax Levies and Collections III 127
Assessed Value/Tax Capacity Value and Market Value
of All Taxable Property IV 128
Property Tax Rates - Direct and Overlapping Governments V 129 —
Special Assessments Billings and Collections VI 130
Ratio of Net Bonded Debt to Assessed Value/Tax
Capacity Value and Net Bonded Debt Per Capita VII 132
Computation of Legal Debt Margin VIII 134
Computation of Direct and Overlapping Debt —
Including Debt Ratios IX 135
Ratio of Annual Debt Service Expenditures for General —
Bonded Debt to Total General Expenditures X 136
Revenue Bond Coverage - Water, Sewer and Storm Sewer —
Revenue Bonds XI 137
Demographic Statistics XII 138 —
Construction and Property Value XIII 139
Principal Taxpayers XIV 140
Miscellaneous Statistical Facts XV 141 —
T
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VIOSINNIW 'SNI)IdOH JO AID
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1998
CITY OFFICIALS
December 31, 1998 —
CITY COUNCIL
Term _
Expires
Charles D. Redepenning, Mayor 12-31-99 _
Frances Hesch Councilmember 12-31-01
Eugene Maxwell Councilmember 12-31-01
Karen Jensen Councilmember 12-31-99 _
Diane Johnson Councilmember 12-31-99
CITY MANAGER _
Steven C. Mielke
FINANCE DIRECTOR —
Lori Yager
2
CITIZENS
Boards & CITY
Commissions COUNCIL City Attorney
Communications City Manager City of
Minnetonka
Community Finance Fire Police Recreation
Services
Assessing Accounting Emergency Patrol/ Activity Center
Preparedness Investigation
City Clerk/ Public Service/
Elections Payroll Communications
Inspections Utility Billing Prevention
_ Planning &
Economic Public Works
Development
Building Maint. &
Economic Equipment
Development Services
Housing Center for the Arts
Pavilion/Ice Arena
Planning &
Zoning Engineering
--LParks & Forestry
Street/Traffic/
Refuse
--LfWater& Sewer
3
07101/97
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4
city of OopkZns
1010 First Street South • 11opkins, 9(X 55343-7573 • (Phone. 612-935-8474 • Far,; 612-935-1834
May 21, 1999
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, 1998 is hereby submitted. This report was prepared
by the City's Finance Department. Responsibility for both the accuracy of the presented data and
the completeness and fairness of the presentation, including all disclosures, supporting schedules,
statistical tables, etc., rests with the City. We believe the data, as presented, is accurate in all
material respects;that it is presented in a manner designed to fairly set forth the financial position
and results of operations of the City as measured by the financial activity of its various funds; and
that all disclosures necessary to enable the reader to gain the maximum understanding of the
City's financial affairs have been included.
_ The organization, form and contents of this report were prepared in accordance with standards
prescribed by the Governmental Accounting Standards Board (GASB), the Government Finance
Officers Association of the United States and Canada, the American Institute of Certified Public
Accountants, the State Auditor's Office— State of Minnesota and the City Charter.
The CAFR is presented in three sections: introductory, financial and statistical. The introductory
section includes a list of principal officials, the organizational chart, the City Manager's letter and
this transmittal letter. The financial section includes the independent auditors' report on the
financial statements and schedules, the general-purpose financial statements and the combining
and individual funds and account group financial statements and schedules. The statistical section
contains selected financial and demographic information pertinent to the City and is generally
presented on a multiyear basis.
Reporting Entity Components
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, public works, community development and parks and recreation. In
addition to general municipal activities, the City provides water, 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.
5
,7n'Equal Opportunity Empfoyer
Governmental Structure
Back rg ound —
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 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 50% single family residential and 50% commercial-
industrial and apartments. The last ten years have shown a stabilization of the population due to
the fact that the City is largely developed and the national trend toward the lowering of persons
per household.
Economic Condition and Outlook
With a strong economy in place, the past few years have shown increased economic and
redevelopment within the City of Hopkins. The valuation of new construction in 1998 was $11.8
million dollars. This economic development increase has been the result of a good development _
market in the Hopkins area along with successful redevelopment activities by the City.
Significant projects completed or begun in 1998 include the following: _
ActActiyity Valuation
Commercial Additions/Alterations: _
o Nine Mile Cove 4,100,000
o Excelsior Blvd. Office Bldg. 1,200,000 —
o Depot Coffee House 500,000
o Excelsior Blvd. Segment 1 1,000,000
o Raspberry Woods 5,000,000 —
Efforts are being made for continued development and growth for 2000 and beyond. It is _
anticipated that approximately $75,000,000 of construction will also take place in the City of
Hopkins during 1999/2000.
6
— Some anticipated projects during this period include the following:
Project Valuation
o Nine Mile Cove $14,000,000
o SuperValu $50,000,000
— o Valley Park Condominium $ 1,500,000
o Westbrooke Patio Homes $ 3,300,000
o Walgreen's/White Castle Complex $ 4,000,000
o Hopkins House Hotel remodeling $ 1,000,000
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/redevelopment efforts
throughout the City. Several projects are anticipated.
A major emphasis has been placed on guiding the redevelopment of the Hennepin County Public
Works site. This 42-acre site became available for development by the fall of 1998 due to the
facilities anticipated relocation to Medina. SuperValu purchased this property and is in the
process of building a distribution facility on it.
In 1999, projects to be constructed include the redevelopment of the Westbrooke Patio Homes
_ (townhouses), the Hopkins House Hotel, the Walgreen's and White Castle development and a
new office complex on Excelsior Boulevard. These developments will have major impacts on the
community and its development. Specialized planning is taking place to ensure that these
developments occur so as to benefit the community and residential neighborhoods.
Finally, over the next three 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 11 th avenue south. The second phase occurs in 1999 between Highway 169
to I Vh Avenue South. The third phase will occur in the year 2000 between Highway 169 and
Blake Road. The final phase runs from Blake Road to Meadowbroke Road and should occur in
2002.
— Major Initiatives
For the Year
For 1998, the staff, following specific directives of the council and the manager, has been
involved in a variety of projects throughout the year. These projects reflect the government's
commitment to ensuring that its citizens are able to live and work in a safe environment and that
the needs for services are met.
The council, in conjunction with the City of Minnetonka, identified a need for improving the
beach at Shady Oak Lake. The renovation was started in 1997 and completed late in 1998. There
was a need for repairing streets in 1998. The costs of the projects totaled $607,000, and were
completed in 1998. The projects included replacing infrastructure, roadway surface, and curb and
gutters. Storm Sewer reconstruction projects totaling $968,000 were started in 1998.
7
For the Future
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made.
The City has formally requested that Hennepin County include in its five year CIP an
improvement project relating to County Road 3 extending through the entire City of Hopkins. _
Possible improvements include street surface, widening, lighting, landscaping, sidewalks, and
trails. It is anticipated that these improvements would take place during 1998-2002.
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.
The City of Hopkins is striving to upgrading its' computer systems. In 1998, the Geographic —
Information System (GIS) was implemented. This system combines separate departmental
databases into one and allows for the expansion of the City's informational capabilities. The
other major computer upgrade is in the police department. We are upgrading our Mobile Data —
Transmission system to stay abreast of technological advances in this area. This will enhance the
speed and accuracy of the public safety departments data retrieval and transmission. _
Financial Information
The City's accounting records are maintained on the accrual, or modified accrual basis, as
appropriate. Budgetary control is maintained by Department Managers and an encumbrance
system whereby purchase orders are audited to ensure the adequacy of funds prior to their release
to vendors. The budget is adopted by, and can be amended by, the City Council. The expenditure
budget may not legally be exceeded at the level of control presented in Exhibit A-2. A
contingency appropriation is established for this purpose. —
In developing and evaluating the City's accounting system, consideration is given to the adequacy _
of internal accounting controls. These controls are designed to provide reasonable, but not
absolute assurance regarding (1) the safeguarding of assets against loss from unauthorized use or
disposition; and (2) the reliability of financial records for preparing financial statements and _
accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of
control should not exceed the benefits likely to be derived, and (2) the evaluation of cost and
benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance of —
proper recording of financial transactions.
Capital financing of the major City improvements is provided for the most part through the —
Permanent Improvement Revolving (PIR) Fund financed by the issuance of improvement bonds.
8
Another source of capital financing is through general obligation bonds, tax increment bonds, or
revenue bonds.
Time lags in revenue collections in some of the funds may make it necessary to arrange short-
term operating loans between funds from time to time. These loans are most often arranged
through the General Fund, but at times may be arranged through other fund groups, such as
Enterprise or Capital Projects groups.
General Government Functions
General municipal services are accounted for in the City's General Fund. Exhibit A-2 indicates
the transactions for this fund compared to the budgeted amounts. Actual revenues for the general
fund were under budget by $206,209. This was a direct result of a change in accounting practice
in the allocation of interest revenues. This shortfall of interest revenues will be eliminated with
the adjustment of budgeted interest revenues in the future.
The following chart presents a comparative analysis of general fund revenues and other financing
-- sources:
General Fund Revenues and Other Financing Sources 1998 &1997 Actual
Other
Program Income
Intergovernmental ■1998
■1997
Fines & Forfeitures
Licenses & Permits
Property Taxes
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
(In thousands)
Total net tax capacity of the City for taxes collected in 1998 (including the fiscal disparities tax
capacity contribution and distribution)was $13,817,228. This 1998 tax base reflects a decrease of
$1,373,039 over 1997 due to compression of the tax classification rates implemented by the state
legislature. The total tax capacity value figure is also net of the tax capacity pledged to tax
increment projects, which amounted to $1,414,777 which is 9.0%of the gross tax base.
Current property tax collections were 99.3%of the tax levy in the year 1998.
9
General Fund expenditures totaled $6,959,045 in 1998, an overall increase of approximately 9.9%
from the comparable figure for 1997. The reason for this increase was the implementation of
allocating equipment costs from the Equipment Replacement Internal Service Fund to the specific —
departments using the equipment. This allocation amounted to approximately $430,000 or
approximately 70% of the increase in expenditures. Total expenditures were below budgeted
amounts by $10,635. —
The following chart presents a comparative analysis of general fund expenditures and other uses: —
Liquidity
The following table shows previous year-end General Fund equities, as compared to the adopted
appropriations for the following year:
Original Fund Equity
General Fund Expenditures and Other Financing Uses -1998& 1997 Actual
Unallocated —
Recreation
Public Works
■1998
Community Development
Public Safety
General Government
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
(In thousands)
General Fund Beginning of Year %of
Budge Amount Budge
1995 6,400,000 2,906,149 45.4
1996 6,592,000 2,870,206 43.5
1997 6,791,100 3,013,865 44.4 —
1998 6,969,680 2,940,139 42.2
1999 7,158,664 2,834,758 39.6
The City's financial position remained strong during 1998. Cash and investment balances at year
end totaled $12,474,732 which provides the liquidity necessary to avoid short term borrowing.
10
The unreserved General Fund balance is available to provide funding for working capital until tax
settlements and state aids are received in July 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
HACA and fiscal disparities distribution) for the following year. Through sound financial
management, the City has achieved this goal in 1998.
In addition to the City's strong financial position in the General Fund, the other city fund groups
_ remained strong as well. The Special Revenue Fund groups have a fund balance of$6,555,197,
which is 64% of the expenditures incurred in 1998. The capital project funds currently have
$2,096,426 in fund balance, which is to be spent in 1999 primarily on the County Road 3 project.
The Enterprise Funds have a working capital balance in excess of$2,000,000, which will provide
funds for the upcoming storm sewer projects. The new Equipment Replacement - Internal
Service Fund has a working capital balance in excess of$1,000,000, which will provide funds for
future capital purchases.
Special Revenue Funds
State Chemical Assessment Fund
This fund is established to record the activity of the Chemical Assessment Team. The source of
revenue for this fund is a State Chemical Assessment Grant which fully reimburses the City for
its' expenditures relating to chemical assessment team expense.
Economic Development
The development of the City is enhanced through this fund. Revenues received are designated for
development projects that are in line with strategic plans of the council and the community for the
City of Hopkins. The fund balance is currently $3,740,613.
Community Development Block Grant
This revenue source continues to provide financial support and facilities for lower income areas
and individuals through housing rehabilitation grants and loans. Grant revenues to the City were
$25,706.
Tax Increment Funds
The City has established several tax increment financing districts which have assisted with the
redevelopment of its City. The positive impact of these districts can be seen in a variety of
projects such as the Oaks of Mainstreet development and the Entertainment Center downtown.
The revenues generated in these funds are designated to pay for debt that was issued to help pay
for the projects or to finance the projects themselves. The total fund balance of all tax increment
districts is currently $669,560 and is designated for debt service payments or for specific projects
within each district.
— 11
Para-Transit
This fund accounts for revenues received from the Metropolitan Council and from user fees to
provide for low cost transportation in Hopkins. This fund is partially funded through the general
fund if necessary.
Housing Rehab
This fund receives money primarily from the Community Development Block Grant program,
special assessments and loan interest. This fund accounts for housing rehabilitation activities in
the City of Hopkins. The fund balance is currently$1,271,810. —
Parking
This fund records and accounts for parking fees and operations, assessments charged to users and
maintenance of the parking facilities. The fund balance is currently $395,642.
Cable TV
This fund records and accounts for franchise fee revenue from a five-city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission. The fund balance is
currently $285,120. —
Depot Coffee House
The Depot Coffee House is a student-run gathering place for students. Here the City records the
expense and revenue of retailing coffee and miscellaneous food products. The teen center is
funded by a grant from the State of Minnesota for youth crime prevention and intervention. —
Debt Administration
Net bonded debt per capita and percentages of net debt to market value are useful indicators of a
city's debt position to municipal management, citizens, and investors. Total outstanding bonded _
debt as of December 31, 1998, totaled $16,588,543 of which $8,453,543 are redevelopment issues
- the last bond matures August 1, 2016; $1,945,000 are park and recreational bonds - due August
1, 2011; $2,215,000 are sewer revenue bonds - due August 1, 2010; $1,485,000 are special —
assessment bonds - due February 1, 2008 and $2,490,000 are housing improvement bonds — due
February 1, 2018. Repayment plans for bonds and interest are well on course and no tax levy is
anticipated for any bonds except the park and recreation and the special assessment issues. —
The City has maintained its A-1 rating from Moody's Investors Service on all issues for several
years. In 1999 it received an A+ rating from Standard and Poors. At December 31, 1998, only —
$1,945,000 of general obligation debt was applicable to the legal debt limit of$13,370,012.
12
Capital Project Funds
The proceeds of general obligation bond issues, federal, state and local grants, and other local
funds for capital projects are accounted for in Capital Project Funds until the particular projects
are completed.
The City utilizes a five-year Capital Improvement Plan, outlining projected costs and probable
sources of funding for proposed various capital improvement projects. Any unreserved fund
balances are used as proposed in the Capital Improvement Plan, when projects are ordered by the
city council. The designated fund balance is $2,069,258, which is for the County Road 3-
construction project.
Enterprise Funds
Water Utility Fund -- The City maintains a complete water delivery system from wells through
filtration plants to the tap. The net working capital position for the water utility fund is currently
$505,890. This fund did experience a small net loss of $2,204 this year, which includes
depreciation.
Sewer Utility Fund -- The City maintains a sewer collection system only, with the treatment
operation being performed by the Metropolitan Waste Control Commission. The City then pays a
treatment fee based on sewage flow, which had continued to increase each of the last several years
until 1992. Working capital had fallen to a low point, but with a rate increase early in 1991 and
another increase early in 1992 the trend has been reversed and been maintained. The current
working capital balance for this fund is $1,351,379 a decrease over 1997. This decrease is
directly attributed to the operating transfer out of$600,000 to the Storm Sewer fund. Net income
before the operating transfer out is $278,895.
Refuse Utility Fund -- City employees and equipment provides a fully automated refuse service
and a recycling operation. The City assumed the refuse pickup function from a contractor in
1986. Increasing landfill costs and a lack of working capital had resulted in rate increases
annually. With the last increase in 1991, the rates have stabilized for now and no rate increase is
planned for the near future. This fund realized a net income of $26,546. The working capital
balance for this fund is $693,162, an increase over 1997 of$48,885.
Storm Sewer Utility Fund -- This fund was created in 1989 to consolidate infrastructure
replacement activities. A storm sewer fee was added to all properties, based on acreage
contribution of runoff. The initial fee was inadequate and has been increased in 1991, 1992, 1993
and most recently in 1998. The 1989 bonds were refinanced in 1993, which will reduce debt cost
by $245,000 over the last 17 years of the bond issue. This fund had a net income of$106,496
before the transfer in from the Sanitary Sewer fund. The working capital balance of this fund
continues to grow negatively. To resolve this a rate change was implemented in 1999 to reduce
revenues in the Sanitary Sewer fund and increase revenues in the Storm Sewer fund. The Storm
Sewer fund incurs many capital project costs and therefore is cash poor. The increases in the rates
and a revenue bond issue planned for 1999 will bring the working capital balance to a positive
amount.
13
Pavilion/Ice Arena Fund -- This fund was established in 1991 to record operating revenues and
expenditures for the pavilion. Small operating profits have been generated each year since 1992,
except 1997. The fund realized a net income of $19,003 in 1998. The Pavilion received a
Mighty Ducks grant of$16,000 in 1998 which helped boost its' net income. The working capital —
balance for this fund is currently $48,829, an increase over 1997 of$24,951.
Art Center—This fund was established in 1997 to record operating revenues and expenditures for
the newly constructed art center. It was only in operation for the last two months in 1997. The
working capital balance for the fund is at $201,414. It is very difficult to compare this year to any —
other because this was the first full year of operations.
Housing Authority -- The authority manages low-income rental units acquired through HUD.
The asset ownership remains with HUD until the bonds are retired, then the assets convert to City
ownership.
Trust Funds
The City is the trustee for two deferred compensation plans created in accordance with Internal
Revenue Code Section 457 and offered to benefit earning employees. Employees and/or the City
make monthly deposits to the plans. —
One plan is administered by Aetna Life Insurance and Annuity Company and the other plan by
ICMA Retirement Corporation. In the past, the plan's assets have been used only to pay benefits
and we believe this shall be true in the future.
Cash Mana ement —
Cash temporarily available for short-term investment during the year was invested as authorized
by Minnesota Statutes Chapter 475 and the City's Investment Policy. —
The City of Hopkins subscribes to the "pooled cash" concept of investing which means that all _
funds with cash balances participate in an investment pool. This permits some funds to be
overdrawn and others to show cash balances when, in fact, the City has a cash balance. This
pooled cash concept provides for investing greater amounts of money at more favorable rates.
Interest earnings are then annually allocated 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 73%. During 1998,
the City of Hopkins earned $767,963 as compared to 1997 earnings of$908,610, (excluding the
expendable trust fund). The lower earnings are attributed to the interest earned on the Oaks of —
Mainstreet project in 1997, with all interest earnings derived from the project either paying for the
project construction or to retire debt.
14
At year-end, the City's cash and investment resources (including restricted cash) were held as
follows:
Cost
Cash 2 .0% $ 261,599
Commercial Paper 69.4% 9,166,964
U.S. Government Agency Securities 28.6% 3,782,159
Total Unrestricted Investments $ 13,210,722
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.
General Fixed Assets
The general fixed assets of the City are those fixed assets used in the performance of general
governmental functions and exclude the fixed assets of the enterprise funds. As of December 31,
1998, the general fixed assets of the City amounted to $23,447,693 based on original or estimated
_ historical cost and is considerably less than the replacement value. Depreciation on general fixed
assets is not recognized in the City's accounting system or in these financial statements.
Independent Audit
Section 7.13 of the City Charter requires that the City Manager report to the City Council
concerning the entire financial operations of the City. The City's entire financial operations are
audited each year (Charter Section 2.08) by independent auditors. The firm of KPMG Peat
Marwick LLP has been retained for that purpose and their report has been included in the
financial section of this report.
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, 1997.
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, whose contents conform to program standards. Such reports must satisfy
both generally accepted accounting principles and applicable legal requirements.
— 15
A Certificate of Achievement is valid for a period of one year only. We believe our current report
meets the requirements of the Certificate of Achievement for Excellence in Financial Reporting _
program, and we are submitting it to the Government Finance Officer's Association 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,
Steven C. Mielke Lori K. Yager
City Manager Finance Director
16
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, 1997
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.
OF OFFjC�
@� OF ,p
W UNrrE�ATES qn
UWA d+
Z�CURPUNAMN S President
SFAs,
—
0060
Executive Director
17
CITY OF HOPKI NS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION II
FINANCIAL SECTION
18
KPMG Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
Independent Auditors' Report
Honorable Mayor and Members
of the City Council
City of Hopkins, Minnesota:
We have audited the general-purpose financial statements of the City of Hopkins, Minnesota (the
City), as of and for the year ended December 31, 1998. These general-purpose financial statements
are the responsibility of the City's management. Our responsibility is to express an opinion on
these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
general-purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall general-purpose
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Hopkins as of December 31, 1998, and the
results of its operations and cash flows of its proprietary fund types for the year then ended, in
conformity with generally accepted accounting principles.
The year 2000 supplementary information on page 49 is not a required part of the general-purpose
financial statements, but is supplementary information required by the Governmental Accounting
Standards Board, and we did not audit and do not express an opinion on such information. Further,
we were unable to apply to the information certain procedures prescribed by professional standards
because of the nature of the subject matter underlying the disclosure requirements and because
sufficiently specific criteria regarding the matters to be disclosed have not been established. In
addition, we do not provide assurance that the City is or will become year 2000 compliant, that the
City's year 2000 remediation efforts will be successful in whole or in part, or that parties with
which the City does business are or will become year 2000 compliant.
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The combining individual fund and account group financial
statements and schedules listed in the accompanying table of contents are presented for purposes
_ of additional analysis and are not a required part of the general-purpose financial statements of the
City. Such information has been subjected to the auditing procedures applied in the audit of the
general-purpose financial statements and, in our opinion, is fairly stated in all material respects in
relation to the general-purpose financial statements taken as a whole.
The data designated as the statistical section in the accompanying table of contents is presented for
purposes of additional analysis and is not a required part of the general-purpose financial
statements. Such information has not been subjected to the auditing procedures applied in the audit
of the general-purpose financial statements and,accordingly, we express no opinion on it.
M.,-I LLP
May 21, 1999
19
' o oil Member Firm of KPMG International
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20
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION IIA
GENERAL PURPOSE FINANCIAL STATEMENTS
The Combined Statements are intended to provide an overview and broad
perspective of the city's financial position and operations. These general purpose
financial statements are at a summary level by fund types and account groups and
include aggregate data to analyze current operations and to determine compliance
with legal and budgetary limitations and to assist in financial planning.
It is emphasized that the total figures contained in these statements are a
combination of unlike purpose groups. The total columns (labeled "Memorandum
Only") are not comparable to a consolidation because the same basis of accounting
is not used by all funds and interfund transactions and balances are not eliminated.
The following combined statements and schedules are presented:
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures, and Changes in Fund
Balances - All Governmental Fund Types and Expendable Trust Funds
Combined Statement of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual - General and Special Revenue Fund Types
Combined Statement of Revenues, Expenses, and Changes in Retained
Earnings -All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
21
CITY OF HOPKINS,MINNESOTA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1998
With Comparative Totals for December 31, 1997
Governmental Fund Types
Special Debt Capital
ASSETS AND OTHER DEBITS General Revenue Service Projects
Assets:
Cash,cash equivalents,and investments $ 2,585,620 $ 3,286,788 $ 1,305,123 $ 1,940,803
Taxes receivable 85,298 - 7,456 - -
Special assessments receivable - 5,095 4,609,467 2,328,409
Accounts receivable 35,957 59,220 - 105,001
Rehabilitation loans receivable - 977,998
Accrued interest receivable 29,609 36,346 13,027 23,059 -
Due from other funds 297,437 4,371,945 2,310 501,759
Due from other governments 15,932 93,367 - 422,572
Inventory 71,708
Prepaid expenses 3,099
Other assets
Restricted cash and investments - 365,622 120,368 -
Advance to other funds 615,000 300,000
Long term loans receivable - 2,150,000 - _ -
Property and equipment,net _
Other debits:
Amount available in debt service funds _
Amount available in special revenue funds restricted cash
and investments _
Amount to be provided for retirement of general long-term debt -
Total Assets and Other Debits $ 3,739,660 $ 11,646,381 $ 6,057,751 $ 5,321,603 _
LIABILITIES.EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable $ 201,325 $ 339,360 $ - $ 20,633 -
Accrued interest payable -
Compensated absences payable 513,446 7,943 -
Due to other funds - 4,538,991 2,035 477,980
Due to other governments - 2,039
Deferred revenue 172,661 202,851 4,613,835 2,726,564
Deposits payable 17,470
Advance from other funds -
Long-term debt _ -
Total Liabilities 904,902 5,091,184 4,615,870 3,225,177
Equity and Other Credits:
Contributed capital - - _ _ -
Investment in general fixed assets - -
Retained earnings:
Reserved - -
Unreserved - -
Fund balances:
Reserved 686,708 3,793,620 1,441,881 -
Unreserved
Designated 2,143,920 429,425 - 2,069,258 -
Undesignated 4,130 2,332,152 - 27,168
Total Equity and Other Credits 2,834,758 6,555,197 1,441,881 2,096,426
Total Liabilities,Equity and Other Credits $ 3,739,660 $ 11,646,381 $ 6,057,751 $ 5,321,603 -
See accompanying Notes to Financial Statements. -
22
A
Proprietary Fiduciary
Fund Type Fund Type Account Groups
General General Totals
Internal Fixed Long-Term (Memorandum Only)
Enterprise Service Trust Assets Debt 1998 1997
$ 2,216,808 $ 1,139,590 $ - $ - $ - $ 12,474,732 $ 12,696,184
92,754 104,112
- - 6,942,971 2,474,751
396,947 680 - - - 597,805 1,702,870
977,998 1,083,191
25,806 9,590 - - - 137,437 134,920
530,000 - - - - 5,703,451 6,148,972
39,474 - - - - 571,345 550,312
24,967 - - - - 96,675 101,849
6,123 - - - - 9,222 8,146
51,803 - 2,903,178 - - 2,954,981 2,484,524
250,000 - - - - 735,990 4,064,284
- - - 915,000 -
- - - - 2,150,000 2,150,000
17,941,719 2,235,201 - 23,447,693 - 43,624,613 41,985,182
- - - 1,441,881 1,441,881 1,381,838
- - - 1,622 1,622 3,450,284
- - - 12,930,040 12,930,040 16,236,421
$ 21,483,647 $ 3,385,061 $ 2,903,178 $ 23,447,693 $ 14,373,543 $ 92,358,517 $ 96,757,840
$ 152,959 $ 8,714 $ - $ - $ - $ 722,991 $ 1,099,395
44,808 - - - - 44,808 44,808
87,247 - - - - 608,636 613,161
684,445 - - - - 5,703,451 6,148,972
24,770 - - - - 26,809 10,299
101,801 - - - - 7,817,712 3,310,556
17,470 11,058
915,000 - - - - 915,000 -
2,215,000 - - - 14,373,543 16,588,543 23,418,543
4,226,030 8,714 - - 14,373,543 32,445,420 34,656,792
6,378,327 3,236,362 - - - 9,614,689 772,684
- - 23,447,693 - 23,447,693 31,136,541
250,000 - - - - 250,000 250,000
10,629,290 139,985 - - - 10,769,275 10,705,218
2,903,178 - - 8,825,387 8,761,801
- - 4,642,603 7,410,575
- - 2,363,450 3,064,229
17,257,617 3,376,347 2,903,178 23,447,693 - 59,913,097 62,101,048
$ 21,483,647 $ 3,385,061 $ 2,903,178 $ 23,447,693 $ 14,373,543 $ 92,358,517 $ 96,757,840
23
CITY OF HOPKINS,MINNESOTA
COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND _
BALANCES-ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997
Governmental Fund Types
Special Debt Capital -
General Revenue Service Projects
Revenues:
Property taxes $ 3,921,506 $ 1,951,190 $ 330,962 $ -
Special assessments - 267,636 - 555,012
Licenses and permits 336,959
Intergovernmental 2,146,480 240,544 - 36,810 _
Franchise fee - 103,397
Fines and forfeitures 109,098 24,374
Charges for services 125,645 4,151,104
Interest 119,158 314,665 19,194 154,547 -
Other 94,818 613,389 - 2,100
Total Revenues 6,853,664 7,666,299 350,156 748,469
Expenditures:
Current:
General government 806,168 138,894
Public safety 3,276,335 34,576 -
Community development 703,196 497,409
Public works 1,619,260 113,152
Recreation 481,105 94,518 -
Other 72,981
Capital outlay - 1,878,756 - 2,206,226
Debt service:
Principal retirements - - 6,695,000 -
Interest,fiscal charges and issuance cost - - 1,102,916 -
Total Operating Expenditures 6,959,045 2,757,305 7,797,916 2,206,226 -
Excess(deficiency)of revenues over expenditures (105,381) 4,908,994 (7,447,760) (1,457,757)
Other Financing Sources(Uses):
Proceeds of bond issued -
Operating transfers in - 615,603 7,507,803 521,759 _
Operating transfers out - (7,359,806) - (515,914)
Total Other Financing Sources(Uses) - (6,744,203) 7,507,803 5,845
Excess(deficiency)of revenues and other financing -
sources over expenditures and other financing uses (105,381) (1,835,209) 60,043 (1,451,912)
Fund Balances-January 1 2,948,618 9,330,442 1,381,838 3,175,871 -
Prior period adjustment - - - 372,467
Fund Balances-January 1,as restated 2,948,618 9,330,442 1,381,838 3,548,338
Residual equity transfer - (940,036) - -
Fund Balances-December 31 $ 2,843,237 $ 6,555,197 $ 1,441,881 $ 2,096,426
See accompanying Notes to Financial Statements. -
24
A-1
Fiduciary
Fund Types Totals
Expendable (Memorandum Only)
Trust 1998 1997
$ - $ 6,203,658 $ 5,595,702
822,648 536,423
336,959 371,739
2,423,834 4,154,952
103,397 165,129
133,472 97,668
4,276,749 4,839,400
325,620 933,184 1,110,984
211,019 921,326 776,628
536,639 16,155,227 17,648,625
- 945,062 1,254,632
- 3,310,911 2,806,655
- 1,200,605 1,534,696
- 1,732,412 1,518,274
- 575,623 317,499
-- 41,776 114,757 72,941
- 4,084,982 11,922,162
_ - 6,695,000 2,625,000
- 1,102,916 1,118,864
41,776 19,762,268 23,170,723
494,863 (3,607,041) (5,522,098)
—" - - 3,940,000
8,645,165 5,566,002
(7,875,720) (5,566,002)
769,445 3,940,000
494,863 (2,837,596) (1,582,098)
2,408,315 19,245,084 19,088,952
372,467 2,029,751
2,408,315 19,617,551 21,118,703
(940,036) (300,000)
$ 2,903,178 $ 15,839,919 $ 19,236,605
25
CITY OF HOPKINS,MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL- GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31, 1998
General Fund _
Variance--
favorable
Budget Actual (unfavorable)
Revenues: —
Property taxes $ 3,945,961 $ 3,921,506 $ (24,455)
Special assessments
Licenses and permits 299,100 336,959 37,859
Intergovernmental 2,176,073 2,146,480 (29,593)
Franchise fee
Fines and forfeitures 77,000 109,098 32,098
Charges for services 77,000 125,645 48,645
Interest 418,439 119,158 (299,281) _
Other 66,300 94,818 28,518
Total Revenues 7,059,873 6,853,664 (206,209)
Expenditures:
General government 810,300 806,168 4,132
Public safety 3,276,450 3,276,335 115
Community development 703,880 703,196 684
Public works 1,622,995 1,619,260 3,735
Recreation 482,700 481,105 1,595
Other 73,355 72,981 374
Capital outlay
Total Expenditures 6,969,680 6,959,045 10,635
Excess(deficiency)of revenues over expenditures 90,193 (105,381) (195,574)
Other Financing Sources(Uses): —
Operating transfers out
Total Other Financing Sources(Uses)
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses 90,193 (105,381) (195,574)
Fund Balances- January 1 2,940,139 2,948,618 -
Fund Balances- December 31 $ 3,030,332 $ 2,843,237 $ (195,574)
See accompanying Notes to Financial Statements
26
A-2
Total
Special Revenue Funds (Memorandum Only)
Variance-- Variance-
favorable favorable
Budget Actual (unfavorable) Budget Actual (unfavorable)
$ - $ - $ - $ 3,945,961 $ 3,921,506 $ (24,455)
314,300 267,636 (46,664) 314,300 267,636 (46,664)
3,700 3,700 - 302,800 340,659 37,859
143,400 129,759 (13,641) 2,319,473 2,276,239 (43,234)
84,000 103,397 19,397 84,000 103,397 19,397
18,000 24,374 6,374 95,000 133,472 38,472
100,900 83,603 (17,297) 177,900 209,248 31,348
85,400 141,349 55,949 503,839 260,507 (243,332)
4,000 401,783 397,783 70,300 496,601 426,301
753,700 1,155,601 401,901 7,813,573 8,009,265 195,692
_ 175,600 138,894 36,706 985,900 945,062 40,838
55,000 34,576 20,424 3,331,450 3,310,911 20,539
251,700 236,929 14,771 955,580 940,125 15,455
128,700 113,152 15,548 1,751,695 1,732,412 19,283
482,700 481,105 1,595
- - 73,355 72,981 374
_ 32,592 36,442 (3,850) 32,592 36,442 (3,850)
643,592 559,993 83,599 7,613,272 7,519,038 94,234
110,108 595,608 485,500 200,301 490,227 289,926
(273,300) (268,240) 5,060 (273,300) (268,240) 5,060
(273,300) (268,240) 5,060 (273,300) (268,240) 5,060
(163,192) 327,368 490,560 (72,999) 221,987 294,986
5,408,724 5,408,724 - 8,348,863 8,357,342 -
$ 5,245,532 $ 5,736,092 $ 490,560 $ 8,275,864 $ 8,579,329 $ 294,986
27
A-3
CITY OF HOPKINS,MINNESOTA
COMBINED STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN
RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997
Totals
Internal (Memorandum Only)
Enterprise Service 1998 1997
Operating revenues: -
Charges for services $ 4,038,380 $ 443,492 $ 4,481,872 $ 3,757,644
Other 96,865 - 96,865 84,159
Total Operating Revenues 4,135,245 443,492 4,578,737 3,841,803
Operating expenses(excluding depreciation):
Salaries and employee benefits 1,011,459 - 1,011,459 824,694 -
Materials,supplies and services 1,299,435 22,152 1,321,587 1,129,712
Disposal costs 1,006,247 - 1,006,247 1,036,858
Total Operating Expenses 3,317,141 22,152 3,339,293 2,991,264
Operating income before depreciation expense 818,104 421,340 1,239,444 850,539
Depreciation expense 498,488 318,640 817,128 419,942
Operating income 319,616 102,700 422,316 430,597
Nonoperating revenue(expense)
Interest income 145,144 15,255 160,399 145,183
Interest/fiscal agent expense (125,370) - (125,370) (156,447) -
Intergovernmental grants 46,773 - 46,773 30,952
Operating transfers from another fund 600,000 - 600,000 -
Operating transfers to another fund (1,369,445) - (1,369,445) - -
Other 7,354 22,030 29,384 100
Net Nonoperating Revenues(Expenses) (695,544) 37,285 (658,259) 19,788
Net income(loss) (375,928) 139,985 (235,943) 450,385
Fund equity: _
Retained earnings-January 1 11,255,218 - 11,255,218 10,758,083
Prior period adjustments (253,250)
Residual equity transfer in 300,000 -
Retained earnings-December 31 10,879,290 139,985 11,019,275 11,255,218
Contributed capital-January 1 472,684 - 472,684 472,684 -
Residual equity transfer in - 940,036 940,036 -
Assets contributed by general fixed asset account
group,net of depreciation 5,905,643 2,296,326 8,201,969 - -
Contributed capital-December 31 $ 6,378,327 $ 3,236,362 $ 9,614,689 $ 472,684
See accompanying Notes to Financial Statements. _
28
_ A-4
CITY OF HOPKINS,MINNESOTA
_ COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997
Totals
Internal (Memorandum Only)
Enterprise Service 1998 199/
Cash Flows from Operating Activities:
Operating income $ 319,616 $ 102,700 $ 422,316 $ 430,597
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 498,488 318,640 817,128 419,942
(Increase)decrease in:
Accounts and accrued interest receivable 26,222 (10,270) 15,952 327,223
Due from other funds (100,000) - (100,000) (14,500)
Due from other governments (28,087) - (28,087) 34,524
Inventory 1,982 - 1,982 (14,678)
Prepaid expense 2,023 - 2,023 (3,170)
Due from Metropolitan Waste Control Commission 24,406 - 24,406 23,467
Accounts,compensated absences and accrued
interest payable 3,756 8,714 12,470 140,980
Due to other funds 1,169,445 - 1,169,445 (8,000)
Due to other governments 21,167 - 21,167 3,613
Deferred revenue 25,592 - 25,592 (23,467)
Other 2,867 - 2,867 (3,150)
Cash Provided by Operating Activities 1,967,477 419,784 2,387,261 1,313,381
Cash Flows from Noncapital Financing Activities:
Intergovernmental grants 46,773 - 46,773 30,952
Residual equity transfer in - - - 300,000
Operating transfer in 600,000 - 600,000 -
Operating transfer out (1,369,445) - (1,369,445) -
Cash Provided By(Used in)Noncapital
Financing Activities (722,672) - (722,672) 330,952
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (1,683,790) (257,515) (1,941,305) (599,846)
Proceeds from sales of property and equipment 2,354 22,030 24,384 6,178
Additions to contributed capital - 940,036 940,036 -
Interest and other payments (125,370) - (125,370) (156,447)
Bond payments (135,000) - (135,000) (125,000)
Cash Provided By(Used in)Capital and
Related Financing Activities (1,941,806) 704,551 (1,237,255) (875,115)
Cash Provided by Investing Activities-interest received 145,144 15,255 160,399 145,183
Increase(Decrease)in Cash and Cash Equivalents (551,857) 1,139,590 587,733 914,401
Cash and Cash Equivalents-January 1 3,018,675 - 3,018,675 2,104,274
Cash and Cash Equivalents-December 31 $ 2,466,818 $ 1,139,590 $ 3,606,408 $ 3,018,675
See accompanying Notes to Financial Statements
29
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-
-
30
-
City of Hopkins
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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 generally accepted accounting principles
as applied to governmental units by the Government Accounting Standards Board (GASB). The more significant
accounting policies of the City are described below.
A. REPORTING ENTITY
In accordance with GASB pronouncements, the City's financial statements include all funds, account groups, and
departments of the City and its component units, for which the City is considered to be financially accountable.
Blended component units, although legally separate entities are, in substance, part of the City's operations and so
-- data from these units are 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 self-sustaining
for current operating expenses; however, HUD retains ownership of the housing units and funds the debt issued
for their purchase. The City provides development financing through tax increment. The HRA is included in the
City's enterprise funds.
B. FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate.
Government resources are allocated to and accounted for in individual funds based upon the purposes for which
they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in
the financial statements of this report, into seven generic fund types and three broad fund categories as follows:
Governmental Funds
General Fund-The general fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
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, other than those financed by proprietary funds or special
revenue funds.
31
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998 —
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.
Fiduciary Funds —
Trust Funds—Trust funds are used to account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governments and/or funds. The City's trust fund is classified as _
expendable trust fund and is accounted for in essentially the same manner as governmental funds.
C. BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus. Governmental
funds and expendable trust funds are accounted for using a current financial resources measurement focus. With
this measurement focus, only current assets and current liabilities generally are included on the balance sheet. —
Reported fund balance is considered a measure of"available spendable resources." Governmental fund operating
statements represent increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and
other financing uses) in net current assets.
Proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all
assets, including fixed assets, and all liabilities, including long-term liabilities, associated with their activity are
included on their balance sheets. Their reported fund equity is segregated into contributed capital and retained
earnings components. Proprietary fund type operating statements present increases (i.e., revenues) and decreases
(i.e.,expenses)in net total assets.
Governmental and fiduciary funds are accounted for using 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 soon enough thereafter to be used to pay liabilities of the current period.
Major revenues that are susceptible to accrual include property taxes (excluding delinquent taxes received over
sixty days after year-end), special assessments, intergovernmental revenues, charges for services, and interest on —
investments. 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 which is recognized when due.
Proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized when earned, —
and expenses are recorded at the time the liabilities are incurred. Unbilled utility service receivables are recorded
at year end.
32
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential
revenue does not meet both the "measurable" and "available" criteria for recognition in the current period.
Deferred revenues also arise when resources are received by the City before it has a legal claim to them. In
subsequent periods,when all revenue recognition criteria are met,the liability for deferred revenue is removed and
revenue is recognized.
D. BUDGETS AND BUDGETARY ACCOUNTING
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. Supplemental budgetary appropriations were necessary during 1998. The effect of the supplemental
amendments are as follows:
Original Budget Budget adjustments Final Budget
General Fund $6,975,000 $6,280 $6,981,280
Chemical Assessment $ 0 $55,000 $55,000
Economic Development $ 101,200 $466 $101,666
Housing Rehab $ 386,300 $53,371 $439,671
Parking $ 128,700 $1,300 $130,000
Cable TV $ 108,300 $7,355 $115,655
6. The budgets for the General Fund are prepared on a modified accrual basis of accounting, which is consistent
with generally accepted accounting principles (GAAP). Certain Special Revenue Funds are budgeted and those
budgets are prepared on a modified accrual basis of accounting. The following Special Revenue Funds are not
budgeted;Community Block Grant,Tax Increment Funds and the Depot Coffee House.
7. A capital improvement program is reviewed annually by the City Council for the Capital Projects Funds,
certain Special Revenue 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.
33
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
E. CASH,CASH EQUIVALENTS 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 are reported at cost or amortized cost, which approximates fair value, except for investments of the
deferred compensation fund which are reported at fair value. —
The City accounts for its 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 also included with cash equivalents for purposes of the statement of cash
flows.
F. SHORT TERM INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided or
services rendered. These receivables and payables are classified as "due from other funds" and "due to other
funds",respectively on the balance sheet(See Note 6).
G. ADVANCE TO/FROM OTHER FUNDS
Noncurrent portions of long-term interfund loan receivables are reported as advances and are offset equally by a —
fund balance reserve account which indicates that they do not constitute expendable available financial resources
and therefore are not available for appropriation.
H. INVENTORY
Inventory is valued at cost (FIFO basis) based on physical counts for the General, Water and Sewer Funds. The
cost of inventory is recorded as an expenditure/expense at the time of consumption. —
I. RESTRICTED ASSETS
Certain proceeds of enterprise fund revenue bonds and special revenue fund revenue bonds, as well as certain
resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is
limited by applicable bond covenants or developer agreements.
J. FIXED ASSETS
Fixed assets used in governmental fund type operations (general fixed assets) are recorded at historical cost and
accounted for in the General Fixed Assets Account Group. Public domain("infrastructure") general fixed assets,
including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are
capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. —
Fixed assets used in proprietary funds are recorded at historical cost and accounted for in the enterprise funds.
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their _
operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been
provided over the estimated useful lives using the straight-line method.
34
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
The estimated useful lives are as follows:
Buildings 25 - 50 years
Mains and Lines 50- 100 years
Improvements 10- 20 years
_ Equipment 3 - 20 years
K. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Vacation and flex leave
pay is accrued when incurred in the proprietary funds and reported as compensated absences payable. Vacation
and flex leave pay that is expected to be liquidated with expendable available financial resources is reported as an
expenditure,and compensated absences payable of the governmental fund that will pay it.
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. Sick pay is expensed as paid. No liability is reported for unpaid
accumulated sick leave.
Employees hired prior to August 1, 1998, shall be entitled to severance pay, after completion of five years
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. Severance pay is accrued
when incurred in the proprietary funds and reported as a compensated absences payable. Severance pay that is
expected to be liquidated with expendable available financial resources is reported as an expenditure and
compensated absences payable of the governmental fund that will pay it.
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, may retire and receive full single health
and life insurance coverage until age 65.
L. LONG-TERM OBLIGATIONS
Long-term obligations expected to be financed from governmental funds are accounted for in the general long-
term debt account group. For other long-term obligations, only that portion expected to be financed from
expendable available financial resources is reported as a fund liability of a governmental fund.
Long-term obligations expected to be financed from proprietary funds are accounted for in those funds.
In governmental fund types, bond discounts and issuance costs are recognized in the current period. Bond
discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds
-- using the bonds-outstanding method,which approximates the effective interest method.
M. FUND EQUITY
Contributed capital is recorded in proprietary funds that have received capital grants or contributions.
Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a
specific future use. Designated fund balances represent tentative plans for future use of financial resources (See
Note 5).
--
35
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
N. 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. Non-recurring or non-routine permanent transfers of
equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers.
O. TOTAL COLUMNS ON COMBINED STATEMENTS
Total columns on the combined statements are captioned"Memorandum Only"to indicate that they are presented
only to facilitate financial analysis. Data in these columns do not present financial position, results of operations,
or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been
made in the aggregation of this data.
P. 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.
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.
Q. RECLASSIFICATIONS
Certain 1997 financial statement amounts have been reclassified to conform to the 1998 presentation.
R. 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 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, 1998, there were 15
note/bond issues outstanding,with an aggregate principal amount payable of approximately$54.2 million. _
36
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
S. RECENTLY ISSUED ACCOUNTING STANDARD
In September 1993, the Government Account Standards Board (GASB) released GASB Statement No. 20
(Statement), Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That
Use Proprietary Fund Accounting. The Statement provides that proprietary and similar trust funds may apply all
GASB pronouncements, as well as all Financial Accounting Standards Board (FASB) Statements and
Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARBs) to the
extent they do not conflict with GASB pronouncements.
The City's proprietary funds comply with all applicable GASB pronouncements. The City also applies all FASB
Statements and Interpretations, APB Opinions and ARBs issued on or before November 30, 1989, to the extent
they do not conflict with GASB pronouncements. The City has not elected to follow guidance of FASB
Statements and Interpretations,APB Opinions and ARBs issued after November 30, 1989.
2 CASH,CASH EQUIVALENTS,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, 1998,were as follows:
Fair Value Bank Balance
$261,599 $272,437
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, 1998 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.
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
37
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998 —
(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 risk assumed at year-end.
Category 1 includes investments that are insured or registered or for which the securities are held by the City or its
agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are
held by the counterparty's trust departments or agent in the City's name. Category 3 includes uninsured and
unregistered investments for which the securities are held by the counterparty, or by its trust department or agent,
but not in the City's name. The City has the ability and intent to hold its investments to maturity and therefore
intends to recover the full carrying value of its investment portfolio upon maturity. —
Investment balances at December 31, 1998,were as follows:
Credit Risk Category
Securities Tyne 1 2 3 Fair Value
U.S. Government $3,782,159 $ - $ - $3,782,159
Agency Securities
Commercial Paper 9,166,964 - - 9,166,964 —
Total Investments $12,949,123 $ - $ - $12,949,123
Total Deposits(See Note 2A) 261,599
Total Investments and Deposits 13,210,722
Less Restricted Cash and Investments 735,990
Net Cash,Cash Equivalents and Investments $ 12,474,732
Other Assets–Investment Pools:
Deferred Compensation(See Note 10) $ 2,903,178
In fiscal 1998, the city implemented GASB Statement No. 31, "Accounting and Financial Reporting for Certain
Investments and for External Investment Pools", which requires the City to report certain investments at fair value.
In the case of investments in money market instruments that have a remaining maturity at the time of purchase of
one year or less, GASB 31 permits governmental entities to record such investments at amortized cost. The City
records money market investments at amortized cost,which approximates fair value.
38
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
3 FIXED ASSETS
Changes in the General Fixed Assets Account Group during 1998 were as follows:
Balance Transfers/ Balance
Jan 1, 1998 Additions Deletions Dec 31, 1998
Land $ 3,966,249 $ 3,000 $ - $ 3,969,249
_ Buildings 8,608,845 9,894 6,183,884 2,434,855
Other Improvements 12,810,968 2,168,069 - 14,979,037
Vehicles 2,429,320 163,053 2,251,716 340,657
_ Machinery&Equipment 3,118,112 174,901 1,872,165 1,420,848
Construction in Progress 203,047 100,000 - 303,047
Total $31,136,541 $2,618,917 $10,307,765 $23,447,693
The construction in progress amount consists of several projects for street reconstruction and Shady Oak Beach.
Changes in proprietary fund type property and equipment during 1998 were as follows:
Balance Balance
Jan 1, 1998 Additions Deletions Dec 31, 1998
Land $ 21,597 $ 300,000 $ - $ 321,597
Buildings 347,213 6,183,884 - 6,531,097
Other Improvements 15,290,761 529,793 10,565 15,809,989
Vehicles - 2,147,881 - 2,147,881
Machinery&Equipment 936,594 1,793,845 14,139 2,716,300
Construction in Progress 36,284 936,196 36,284 936,196
Total $16,632,449 $11,891,599 $ 60,988 $28,463,060
Less: Accumulated depreciation 8,286,140
Net Fixed Assets $20,176,920
4 LONG-TERM DEBT
Changes in long-term debt during 1998 were as follows:
Balance Balance
Jan 1, 1998 Additions Deductions Dec 31, 1998
General Obligation Bonds $17,433,543 $ - $4,545,000 $12,888,543
Special Assessment Bonds 1,665,000 - 180,000 1,485,000
Total 19,098,543 - 4,725,000 14,373,543
Other General Gross
Revenue Bonds 1,970,000 - 1,970,000 -
Enterprise Revenue Bonds 2,350,000 - 135,000 2,215,000
Total $23,418,543 $ - $6,830,000 $16,588,543
39
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
The long-term debt obligations outstanding at year-end are summarized as follows:
Bonds Maturities Interest Rate Dec 31, 1998
General Obligation Bonds 1999-2018 3.45-8.10% $ 12,888,543
Special Assessment Bonds 1999-2008 4.55-6.85 1,485,000
Revenue Bonds 1999-2010 4.50-4.60 2,215,000
Long-term debt maturities(including interest of$7,764,626)are as follows:
Year Ending Special
December 31 General Revenue Assessment Total
1999 $ 1,485,309 $ 238,450 $ 253,631 $ 1,977,390 _
2000 1,478,250 241,925 244,406 1,964,581
2001 1,489,359 244,870 234,900 1,969,129
2002 1,467,334 237,510 181,710 1,886,554
2003 1,511,844 235,035 174,893 1,921,772
2004 1,365,744 242,100 167,940 1,775,784
2005 1,422,481 238,705 160,853 1,822,039
2006 1,414,779 235,080 153,630 1,803,489
2007 1,486,448 240,995 146,272 1,873,715
Thereafter 6,491,866 728,070 138,780 7,358,716
Less: Interest 6,724,871 667,740 372,015 7,764,626 _
$ 12,888,543 $ 2,215,000 $ 1,485,000 $ 16,588,543
There is $1,441,881 available in the Debt Service Funds to service the general obligation and tax increment bonds. _
There are a number of limitations and restrictions contained in the various bond indentures. The City is in
compliance with all significant limitations and restrictions.
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 Storm Sewer
Utility Fund 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.
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market value. At December
31, 1998, the debt limit for the City was $13,370,012 but only $1,742,854 of general obligation and revenue bonds
were applicable to the limit. The legal debt margin was$11,627,158.
40
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31, 1998
5 DESIGNATIONS AND RESERVES OF FUND EQUITY
Fund equity in the various funds has been reserved or designated at December 31, 1998 as follows:
Reserved
_ General Fund:
Inventories $ 71,708
Advance to other funds 615,000
Total 686,708
Special Revenue Funds:
Loans receivable 977,998
Central Business District Redevelopment Plan 200,000
Long term receivables 2,450,000
Oaks of Mainstreet project 1,622
Patio Homes 164,000
Total 3,793,620
Debt Service Funds:
Debt service 1,441,881
Enterprise Funds:
Storm Sewer Utility Fund:
Bonds and Interest 250,000
Trust Fund:
Plan participants 2,903,178
Total Reserved $9,075,387
Designated
General Fund:
Shady Oak Beach Development $ 100,000
Downtown Stage 32,000
Budget Carryovers 28,320
Working Capital 1,983,600
Total 2,143,920
Special Revenue Funds
Housing Rehab Fund 393,176
Building Improvements 36,249
Total 429,425
Capital Projects Funds:
Street Improvements 2,069,258
Total Designated $4,642,603
— 41
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998 —
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, 1998:
Interfund Interfund —
Fund Receivable Payable
General Fund $ 297,437 $ -
Special Revenue Funds: —
State Chemical Assessment Fund - 10,337
Economic Development Fund 2,331,000 -
Hennepin County CDBG Fund - 800 _
Tax Increment 1.1 Fund 1,910,279 1,550,000
Art Center T.I. 1.2 Fund - 286,300
Entertainment Center T.I. 1.2 Fund - 2,150,000
Tax Increment 2.4 Fund - 275 '
Tax Increment 2.6 Fund - 510,279
Tax Increment 2.9 Fund - 30,000
Tax Increment 2.10 Fund - 1,000
Parking Fund 130,666 -
Debt Service Funds:
Taxable Redevelopment Refunding Bonds of 1990 275
Park and Recreational Refunding D Bonds of 1993 2,035 -
Park and Recreational Facilities Bonds of 1990 - 2,035
Capital Project Funds:
Municipal State Aid Construction Fund - 347,314 —
Permanent Improvement Revolving Fund 501,759 130,666
Enterprise Funds:
Water Utility Fund - 6,961
Sewer Utility Fund 530,000 4,395
Refuse Utility Fund - 7,788
Storm Sewer Utility Fund - 665,301
Total $5,703,451 $5,703,451
42
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
7 SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains seven Enterprise funds which account for water, sewer, refuse, storm sewer utility operations,
pavilion/ice arena operations,art center operations and low income housing rentals. Segment information for the year
ended December 31, 1998 is as follows:
Storm
Water Sewer Refuse Sewer Pavilion/ Total
Utility Utility Utility Utility Ice Arena Art Housing Enterprise
- Fund Fund Fund Fund Fund Center Authority Funds
Operating Revenues $ 823,580 $ 1,531,411 $ 576,799 $ 554,622 $ 248,260 $ 193,137 $207,436 $ 4,135,245
Depreciation Expense 161,623 58,620 32,952 110,085 57,099 78,109 - 498,488
Operating Income(Loss) (16,825) 230,265 (35,473) 334,243 (46,469) (143,413) (2,712) 319,616
- Operating Transfers In(Out) (6,961) (604,395) (7,788) 464,699 - (615,000) - (769,445)
Net Income(Loss) (2,204) (321,105) 26,546 706,496 (27,466) (757,001) (1,194) (375,928)
Grants - - 30,773 - 16,000 - 46,773
Property and Equipment:
- Additions 376,143 22,348 10,613 967,924 4,682 302,080 - 1,683,790
Deletions 31,670 23,754 - 5,564 - - 60,988
Net Working Capital 505,890 1,351,379 693,162 (830,829) 48,829 201,414 86,053 2,055,898
Total Assets 4,297,134 4,121,987 1,084,229 5,406,610 2,127,071 4,334,877 111,739 21,483,647
Bonds Payable - - - 2,215,000 - - - 2,215,000
- Contributed Assets - - - - 2,085,025 3,820,618 - 5,905,643
Total Equity $ 4,235,487 $ 3,998,441 $ 1,045,601 $ 2,441,357 $ 2,108,761 $ 3,341,917 $ 86,053 $ 17,257,617
- 8 CONTRIBUTED CAPITAL
During 1998,contributed capital changed by the following amounts:
Internal
- Sources(Uses) Enterprise Service
Special Revenue fund - $ 940,036
General Fixed Asset Account Group $6,236,610 3,663,752
- Depreciation on contributed assets (330,967) (1,367,426)
Net Change 5,905,643 3,236,362
Contributed capital,January 1, 1998 472,684 -
- Contributed capital,December 31, 1998 $6,378,327 $3,236,362
During 1998,the City transferred from the General Fixed Asset Account Group the cost of the Ice Arena building and
the cost of the Art Center building into the Pavilionlice Arena Enterprise Fund and the Art Center Enterprise Fund
- respectively. The City also established the Equipment Replacement Internal Service Fund and transferred vehicles
and equipment from the General Fixed Asset Account Group into the internal service fund.
9 PENSION PLANS
A. Defined Benefit Pension Plans-Statewide
1. Plan Description
All full-time and certain part-time employees of the City of Hopkins are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the
Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF), which are
cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance
with Minnesota Statutes,Chapters 353 and 356.
- 43
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998 —
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 who retires before July 1, 1997 is 2 percent
of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. The annuity
accrual rate for Basic members who retire on or after July 1, 1997 is 2.2 percent of average salary for each of the
first 10 years of service and 2.7 percent for each remaining year. For a Coordinated Plan member who retires
before July 1, 1997, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5
percent for each remaining year. For Coordinated members who retire on or after July 1, 1997, the annuity
accrual rates increase by 0.2 percent(to 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 2.5 percent of average salary for Basic Plan
members and 1.5 percent for Coordinated Plan members who retire before July 1, 1997. Annuity accrual rates
increase 0.2 percent for members who retire on or after July 1, 1997. For PEPFF members, the annuity accrual _
rate is 2.65 percent for each year of service for members retiring before July 1, 1997. Effective July 1, 1997, the
annuity accrual rate is increased to 3.0 percent. For all PEPFF members and for PERF members whose annuity is
calculated using Method 1, a full annuity is available when age plus years of service equal 90. 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 normal 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 reduce the monthly normal annuity amount, because the
annuity is 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 by writing to PERA, 514 St. Peter Street#200, St.
Paul, Minnesota,55102 or by calling(651)296-7460 or 1-800-652-9026.
2. 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 8.75% and 4.75%, respectively, of their annual covered salary. PEPFF members are required to
contribute 7.60% of their annual covered salary. The City of Hopkins is required to contribute the following _
percentages of annual covered payroll: 11.43%for Basic Plan PERF members, 5.18%for Coordinated Plan PERF
members and 11.40%for PEPFF members. The City's contributions to the Public Employees Retirement Fund for
the years ending December 31, 1998, 1997, and 1996 were $164,242, $135,795, and$128,134, respectively. The
City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 1998, 1997,
44
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
and 1996 were $153,481, $145,141, and $146,653, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
B. Hopkins Fire Relief Association(HFRA)
Plan Description
The City contributes to the Hopkins Fire Relief Association(Association); a single employer defined benefit plan.
The Association administers the plan and issues separate financial statements that can be obtained by contacting
the Association.
Volunteer firefighters of the City are members of the Association. The plan provides for permanent and short
term disability benefits, death benefits and pensions with a set value for the annual withdrawal amount. Full
vesting in the plan requires a member to have served for at least 5 years, to have reached the age of 50 years and
to have been a member of the Association for at least 10 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:
1998 Contributions: City $27,500
State $53,048
Actuarial valuation date: 12/31/98
Actuarial cost method: Entry age normal actuarial cost method
Assumed rate of return: 5%
Annual Pension Benefit Cost for Past Three Years
Annual Pension
Year Ended Cost(APC)
12/31/98 $ -
12/31/97 $ -
12/31/96 $253,665
Actuarial Valuations
Actuarial Actuarial Accrued Excess of
Actuarial Value of Liability(AAL) Assets Funded
Valuation Assets Entry Age Over AAL Ratio
Date La) Lb) (a-b) (a/b)
12/31/98 2,151,362 1,723,374 427,988 125%
12/31/97 1,744,232 1,483,054 261,178 118%
12/31/96 1,389,767 1,173,520 216,247 118%
Covered payroll and excess as a percentage of covered payroll are not disclosed because the Hopkins Fire
Department is a volunteer organization and therefore does not have any covered payroll.
45
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998 —
10 DEFERRED COMPENSATION
The City offers its employees deferred compensation plans created in accordance with Internal Revenue Code Section
457. These plans, available to all City employees, permit participants to defer a portion of their salary until future
years. The deferred compensation is not available to participants until termination, retirement, death or unforeseeable —
emergency.
The City is trustee for the plans and accordingly, the plan assets (recorded at fair value) and fund balances are
recorded in an expendable trust fund. Plan assets were $2,903,178 and $2,408,315 at December 31, 1998 and 1997,
respectively. The City makes a monthly flat rate payment into a deferred compensation plan for each sworn police
officer. The cost to the City in 1998 for this plan was$6,800.
11 BUDGET INFORMATION
For the year ended December 31, 1998, actual expenditures did not exceeded the budgeted amount in any of the —
budgeted funds.
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process are —
funds that are completely reimbursable from the federal government, Tax Increment District Funds and funds that are
established for a particular project and that project has been primarily completed. The following is a list of non-
budgeted funds and a reconcilement of budgeted and non-budgeted funds actual, revenues, expenditures and other
financing sources(uses): —
Community Development Block Grant, T.I.F. 1.1, T.I.F. 1.2, T.I.F. 2.1, T.I.F. 2.3, T.I.F. 2.4, T.I.F. 2.5, T.I.F. 2.6,
T.I.F. 2.7,T.I.F.2.8,T.I.F.2.9,and T.I.F.2.10 and the Depot Coffee House. —
Budgeted Special Non-budgeted Total Special
Revenue Funds Funds Revenue Funds —
Total Revenue $ 1,151,901 $ 6,514,398 $ 7,666,299
Total Expenditure $ 559,993 $ 2,197,312 $ 2,757,305 _
Total Other Financing Sources(Uses) $ (268,240) $(6,475,963) $ (6,744,203)
12 FUND BALANCE DEFICITS
At December 31, 1998,the following funds had deficit fund balances. These deficits will be corrected through future
tax levies or interfund transfers:
Tax Increment 1.2,Art Facility $ 41,461
Tax Increment 2.6 $ 501,357
Tax Increment 2.9 $ 23,722
13 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 Developers Mortgage Corp., 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$977,998 at December 31, 1998.
46
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
14 METROPOLITAN WASTE CONTROL COMMISSION
— A. Interceptor Acquisition Contract
As of January 1, 1971, the Metropolitan Waste Control Commission (MWCC) assumed ownership of all existing
— interceptors and treatment works. Under the terms of the agreement with the MWCC,the City is to be reimbursed
for the value at the time of transfer of such facilities.
_ The current value receivable represents the value of the facilities acquired by the MWCC, and was determined to
be $493,732 at the date of takeover by the MWCC. This amount is being amortized through credits received
against annual sewer service billings from the MWCC over a thirty-year period with interest at 4%.
— Prior to 1998, the City received credits against MWCC billings totaling $741,258 of which $417,523 was treated
as a reduction of principal. During 1998,the City received a credit of$27,454, of which$24,406 was a reduction
of principal. As of December 31, 1998,a balance of$51,803 remained to be collected over the next two years.
15 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 $750,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
16 SUBSEQUENT EVENTS
On April 6, 1999,the City issued $1,465,000 of Taxable G.O. Housing Improvement Area Bonds. The proceeds of
the bonds are being used to pay for housing improvements in the City of Hopkins.
17 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's 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$5,000 deductible per occurrence for its property and liability coverage. The public entity risk pool is
— responsible for all losses in excess of$5,000 per occurrence.
18 RESTATEMENT OF FUND BALANCE
The City recorded a prior period adjustment to correctly reflect its receivable and deferred revenue amounts for
special assessments in the Capital Project Funds.
This prior period adjustment for the Capital Project Fund is summarized as follows:
Fund balance as previously reported $3,175,871
Adjustment 372,467
Fund balance as restated $3,548,338
47
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1998
19 NEW FUND STRUCTURE
The City transferred all of its' assets in the Equipment Replacement Special Revenue Fund into the Equipment
Replacement Internal Service Fund. The City also transferred machinery and equipment purchased in the Equipment
Replacement Special Revenue Fund and recorded in the General Fixed Asset Account Group into the Internal
Service Fund.
20. CHANGE IN ACCOUNTING PRINCIPLE
As described in note 2, the City implemented GASB No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, during fiscal 1998. This statement establishes accounting and
financial reporting standards for certain investments held by governmental entities. It requires investments to be
reported at fair value. The effect of implementing GASB No. 31 was immaterial to the financial statements.
48
City of Hopkins
REQUIRED SUPPLEMENTARY INFORMATION
(Unaudited)
December 31, 1998
1 YEAR 2000 DISCLOSURE STATEMENT
The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment
that may adversely affect the government's operations as early as fiscal 1999.
The City of Hopkins has completed an inventory of computer systems and other equipment necessary to conducting
City operations. The City has identified the following systems requiring year 2000 remediation.
• Utility billing system. The City is in the process of replacing its utility billing system in 1999. Validation and
testing of the new utility billing system software has been completed. Complete implementation is scheduled for
July 1999. There is $40,000 in the 1999 budget to replace this software. A vendor has been contracted with in
1999.
• Permit and licensing system. The City is in the process of replacing its permit and licensing system to a year
_ 2000 compliant system. Validation and testing of the new software has been completed. Implementation is
scheduled for October 1999. There is $15,000 in the 1999 budget to replace this software. A vendor has been
contracted with in 1999.
• Police records system. The City is in the process of replacing its police records system in 1999. Validation and
testing of the new software has been completed. Implementation is scheduled for August 1999. There is
$250,000 in the 1999 budget to replace this software. A vendor has been contracted with in 1999.
• Police logging system. The City is replacing its logging system in 1999. A vendor has not been identified.
There is$5,000 in the 1999 for this software replacement.
• Utility billing radio read system. The City is replacing the current radio read system with a year 2000 compliant
system. Implementation is scheduled for September 1999. There is $40,000 in the 1999 budget to replace this
system. A vendor has been contracted with in 1999.
• Voice Mail software. In 1997 the City replaced its' voice mail software system to a year 2000 compliant system.
This system has been validated and tested completely.
• Fuel dispensing system. The City is upgrading its' fuel dispensing system to be year 2000 compliant. The
current vendor will provide the upgrade. The upgrade has not been validated or tested. There is $2,000 in the
1999 budget to upgrade this system.
• Fire station access system. The City is upgrading its' fire station access system to be year 2000 compliant. The
_ current vendor will provide the upgrade. The upgrade has not been validated or tested. There is $1,500 in the
1999 budget to upgrade this system.
• The City has completed testing and validation on all electronic equipment it identified as necessary to conducting
City operations.
Because of the unprecedented nature of the Year 2000 issue, its effect and the success of related remediation efforts
will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the City is or will be
Year 2000 ready,that the City's remediation efforts will be successful in whole or in part, or that parties with whom
the City does business will be year 2000 ready.
49
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50
CITY OF HOPKI NS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION IIB
COMBINING, INDIVIDUAL FUNDS AND
ACCOUNT GROUPS
STATEMENTS AND SCHEDULES
51
CITY OF HOPKI NS, MINNESOTA -
COMPREHENSIVE ANNUAL FINANCIAL REPORT -
GENERAL FUND
The Home Rule Charter of the City of Hopkins provides in Section 7.11 "There shall
be maintained in the City Treasury a general fund for the payment of such expenses
as the Council may deem proper. Into this fund shall be paid all moneys levied for
this fund and all moneys not required to be placed in some other fund."
The General Fund is established to account for the revenue and expenditures to —
carry out basic governmental activities of the city such as general government,
public safety, public works, community development and parks and recreation.
Revenue is recorded by source; i.e., taxes, licenses, and General Fund expenditures —
are made primarily for current day-to-day operations and operating equipment and
are recorded by major functional classifications and by operating departments. —
52 —
_ B
CITY OF HOPKINS,MINNESOTA
_ GENERAL FUND
BALANCESHEET
December 31, 1998
With Comparative Amounts for December 31, 1997
1998 1997
ASSETS
Cash and investments $ 2,585,620 $ 2,619,172
Taxes receivable 85,298 75,893
Accounts receivable 35,957 36,805
Accrued interest receivable 29,609 35,626
Due from other funds 297,437 1,210,000
Due from other governments 15,932 4,545
Prepaid expenses 3,099 -
Advance to other funds 615,000 -
Inventory 71,708 74,900
Total Assets $ 3,739,660 $ 4,056,941
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 201,325 $ 388,495
Compensated absences payable 513,446 532,267
Deferred revenue 172,661 184,982
Deposits payable 17,470 11,058
Total Liabilities 904,902 1,116,802
Fund Balance:
Reserved:
Inventory 71,708 74,900
Advance to other funds 615,000
Unreserved:
Designated for downtown park stage 32,000 32,000
Designated for Pavilion Carpet - 56,000
Designated for Shady Oak Beach Development 100,000 -
Designated for budget carryovers 28,320 -
Designated for working capital 1,983,600 2,539,400
Undesignated 4,130 237,839
Total Fund Balance 2,834,758 2,940,139
Total Liabilities and Fund Balance $ 3,739,660 $ 4,056,941
53
B-1
CITY OF HOPKINS, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance-- -
favorable 1997
Budget Actual (unfavorable) Actual
Revenues: -
Property taxes $ 3,945,961 $ 3,921,506 $ (24,455) $ 3,352,709
Licenses and permits 299,100 336,959 37,859 371,739
Intergovernmental 2,176,073 2,146,480 (29,593) 2,194,089 -
Fines and forfeitures 77,000 109,098 32,098 91,879
Charges for services 77,000 125,645 48,645 107,496
Interest 418,439 119,158 (299,281) 126,273
Other 66,300 94,818 28,518 61,276
Total Revenues 7,059,873 6,853,664 (206,209) 6,305,461
Expenditures:
General Government 810,300 806,168 4,132 785,716
Public Safety 3,276,450 3,276,335 115 2,806,655 -
Community Development 703,880 703,196 684 694,367
Public Works 1,622,995 1,619,260 3,735 1,518,274
Recreation 482,700 481,105 1,595 500,925 -
Other 73,355 72,981 374 23,586
Total Expenditures 6,969,680 6,959,045 10,635 6,329,523
Excess(deficiency)of revenues over expenditures 90,193 (105,381) (195,574) (24,062)
Other Financing Uses:
Operating transfers out:
Paratransit Fund (11,600) - 11,600 (8,479)
Total Other Financing Uses (11,600) - 11,600 (8,479) -
Excess(deficiency)of revenues over expenditures
and other financing uses 78,593 (105,381) (183,974) (32,541)
Fund Balance-January 1 2,940,139 2,940,139 - 3,013,865
Prior Period adjustment - - - (41,185)
Fund Balance- December 31 $ 3,018,732 $ 2,834,758 $ (183,974) $ 2,940,139
54 -
B-2
CITY OF HOPKINS, MINNESOTA
_ GENERALFUND
SCHEDULE OF REVENUES- BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance--
Adjusted favorable 1997
Budget Actual (unfavorable) Actual
Taxes
General property taxes $ 3,495,961 $ 3,371,735 $ (124,226) $ 2,893,506
Fiscal disparities 450,000 549,771 99,771 459,203
Total Taxes 3,945,961 3,921,506 (24,455) 3,352,709
Licenses and permits
Business 127,100 146,099 18,999 137,605
Non-business 172,000 190,860 18,860 234,134
Total Licenses and permits 299,100 336,959 37,859 371,739
Intergovernmental
Local government aids 841,677 851,917 10,240 851,790
Homestead credit 961,223 960,853 (370) 961,173
State grants 101,573 94,460 (7,113) 138,463
Insurance premium - police 170,100 142,013 (28,087) 132,668
Insurance premium - fire 60,000 53,048 (6,952) 50,904
Federal grants 37,500 37,286 (214) 59,091
Other grants 4,000 6,903 2,903 -
Total Intergovernmental 2,176,073 2,146,480 (29,593) 2,194,089
Fines and forfeitures
Court fines 75,000 107,850 32,850 90,524
Other 2,000 1,248 (752) 1,355
Total Fines and forfeitures 77,000 109,098 32,098 91,879
Charges for services
General government 5,000 3,364 (1,636) 81,868
Community Services 39,700 49,145 9,445
Public safety 22,300 21,554 (746) 24,648
Public works 3,000 5,341 2,341 980
Recreation 4,000 9,384 5,384 -
Community Development 3,000 36,857 33,857 -
Total Charges for services 77,000 125,647 48,64T
Other
Interest 418,439 119,158 (299,281) 126,273
Miscellaneous 66,300 94,818 28,518 61,276
Total Other 484,739 213,976 (270,763) 187,54T
Total Revenues $ 7,059,873 $ 6,853,664 $ (206,209) $ 6,305,461
55
B-3
CITY OF HOPKINS,MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998 -
Variance
favorable 1997
Budget Actual (unfavorable) Actual -
GENERAL GOVERNMENT
Mayor and Council
Salaries and employee benefits $ 23,200 $ 23,355 $ (155) $ 23,521 -
Materials, supplies and services 55,000 52,495 2,505 62,764
Total 78,200 75,850 2,350 86,285
Health and Welfare
Materials, supplies and services 36,600 36,336 264 36,656
Administrative Services
Salaries and employee benefits 248,100 249,233 (1,133) 227,072
Materials, supplies and services 35,200 33,874 1,326 29,278 -
Capital outlay 3,500 3,500 - 5,299
Total 286,800 286,607 193 261,649
Less expenditures charged to other activities (22,100) (22,125) 25 (20,000)
Net 264,700 264,482 218 241,649
Finance _
Salaries and employee benefits 217,100 219,624 (2,524) 207,266
Materials, supplies and services 33,100 31,582 1,518 28,938
Capital outlay 15,500 15,500 - 3,314 -
Total 265,700 266,706 (1,006) 239,518
Less expenditures charged to other activities (120,000) (121,275) 1,275 (121,000)
Net 145,700 145,431 269 118,518 -
Legal Services
Materials, supplies and services 110,000 109,483 517 119,293
Municipal Building
Salaries and employee benefits 98,900 100,067 (1,167) 95,230
Materials, supplies and services 141,300 140,114 1,186 144,519 -
Capital outlay 400 400 - -
Total 240,600 240,581 19 239,749
Less expenditures charged to other activities (122,100) (122,100) - (100,500) -
Net 118,500 118,481 19 139,249
56
B-3
CITY OF HOPKINS, MINNESOTA
_ GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance--
favorable 1997
Budget Actual (unfavorable) Actual
GENERAL GOVERNMENT(continued)
Elections
Salaries and employee benefits $ 22,450 $ 22,419 $ 31 $ 7,704
Materials, supplies and services 4,800 4,733 67 5,446
Total 27,250 27,152 98 13,150
City Clerk
Salaries and employee benefits 42,450 44,878 (2,428) 43,143
Materials, supplies and services 7,000 4,209 2,791 4,372
Capital outlay 2,000 1,991 9 3,401
Total 51,450 51,078 372 50,916
Less expenditures charged to other activities (22,100) (22,125) 25 (20,000)
Net 29,350 28,953 397 30,916
TOTAL GENERAL GOVERNMENT 810,300 806,168 4,132 785,716
PUBLIC SAFETY
Police
Police Administration
Salaries and employee benefits 247,300 246,596 704 235,483
Materials, supplies and services 45,700 39,296 6,404 51,708
Capital outlay 56,900 56,315 585 3,342
- Total 349,900 342,207 7,693 290,533
Police Patrol and Investigation
Salaries and employee benefits 1,496,000 1,495,049 951 1,336,117
Materials, supplies and services 182,400 187,943 (5,543) 188,821
Capital outlay 82,600 88,415 (5,815) 12,498
Total 1,761,000 1,771,407 (10,407) 1,537,436
Police Services
Salaries and employee benefits 507,400 507,835 (435) 472,732
Materials, supplies and services 82,000 82,579 (579) 71,623
Capital outlay 47,250 43,460 3,790 12,591
Total 636,650 633,874 2,776 556,946
Total Police 2,747,550 2,747,488 62 2,384,915
57
B-3
CITY OF HOPKINS, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1998 -
With Comparative Actual Amounts for Year Ended December 31, 1997
1998 -
Variance--
favorable 1997
Budget Actual (unfavorable) Actual -
PUBLIC SAFETY(continued)
Fire
Salaries and employee benefits $ 288,000 $ 275,119 $ 12,881 $ 267,765
Materials, supplies and services 113,900 126,771 (12,871) 142,723
Capital outlay 127,000 126,957 43 11,252
Total 528,900 528,847 53 421,740 -
TOTAL PUBLIC SAFETY 3,276,450 3,276,335 115 2,806,655
COMMUNITY DEVELOPMENT
Administration
Salaries and employee benefits 73,500 73,060 440 78,357 -
Materials, supplies and services 1,550 2,226 (676) 1,341
Capital outlay 2,400 2,144 256 663
Total 77,450 77,430 20 80,361 -
Planning and Economic Development
Salaries and employee benefits 124,300 125,020 (720) 121,168 _
Materials, supplies and services 14,280 13,817 463 16,870
Capital outlay 5,500 5,162 338 -
Total 144,080 143,999 81 138,038 -
Assessing
Salaries and employee benefits 177,500 178,020 (520) 166,532
Materials, supplies and services 13,600 13,222 378 10,841
Capital outlay 6,000 5,820 180 2,860
Total 197,100 197,062 38' 180,233
Inspections
Salaries and employee benefits 249,100 248,333 767 266,567
Materials, supplies and services 25,750 25,037 713 21,389
Capital outlay 10,400 11,335 (935) 7,779
Total 285,250 284,705 545 295,735
TOTAL COMMUNITY DEVELOPMENT 703,880 703,196 684 694,367
58
- B-3
CITY OF HOPKINS, MINNESOTA
GENERALFUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1998
- With Comparative Actual Amounts for Year Ended December 31, 1997
1998
- Variance--
favorable 1997
Budget Actual (unfavorable) Actual
- PUBLIC WORKS
Public Works Buildings
Salaries and employee benefits $ 8,900 $ 8,288 $ 612 $ 12,355
- Materials, supplies and services 34,400 34,848 (448) 36,876
Capital outlay 5,500 5,627 (127) -
Total 48,800 48,763 37 49,231
Equipment Services
Salaries and employee benefits 148,200 150,807 (2,607) 137,573
_ Materials, supplies and services 16,200 8,273 7,927 6,692
Capital outlay 500 500 - 2,396
Total 164,900 159,580 5,320 146,661
- Less expenditures charged to other activities (125,200) (120,208) (4,992) (112,088)
Net 39,700 39,372 328 34,573
Public Works Administration
Salaries and employee benefits 114,900 112,206 2,694 98,081
Materials, supplies and services 14,400 19,218 (4,818) 16,838
Capital outlay 2,500 2,500 - -
Total 131,800 133,924 (2,124) 114,919
Less expenditures charged to other activities (130,200) (132,419) 2,219 (100,300)
- Net 1,600 1,505 95 14,619
Engineering:
Salaries and employee benefits 106,900 121,229 (14,329) 120,485
- Materials, supplies and services 18,400 41,671 (23,271) 14,091
Capital outlay 5,750 5,750 - 563
Total 131,050 168,650 (37,600) 135,139
- Less expenditures charged to other activities (24,700) (62,491) 37,791 (66,674)
Net 106,350 106,159 191 68,465
- Streets and Alleys:
Salaries and employee benefits 213,900 226,101 (12,201) 230,269
Materials, supplies and services 101,517 89,443 12,074 118,542
- Capital outlay 56,883 56,756 127 -
Total 372,300 372,300 - 348,811
- Less expenditures charged to other activities - - - (1,522)
Net 372,300 372,300 - 347,289
59
B-3
CITY OF HOPKINS, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL-CONTINUED
Year Ended December 31, 1998 -
With Comparative Actual Amounts for Year Ended December 31, 1997
1998 -
Variance--
favorable 1997
Budget Actual (unfavorable) Actual -
PUBLIC WORKS(continued)
Snow and Ice Removal:
Salaries and employee benefits $ 48,000 $ 42,491 $ 5,509 $ 75,638 -
Materials, supplies and services 6,800 11,683 (4,883) 30,289
Capital outlay 3,500 3,500 - -
Total 58,300 57,674 626 105,927 -
Seal Coat Zone:
Salaries and employee benefits 21,200 21,415 (215) 5,095 -
Materials, supplies and services 50,600 50,380 220 54,782
Capital outlay 3,500 3,500 -
Total 75,300 75,295 5 59,877 -
Sidewalk Repair:
Salaries and employee benefits 2,300 2,204 96 859 _
Materials, supplies and services 25,345 24,559 786 36,206
Total 27,645 26,763 882 37,065
Traffic Signs and Signals:
Salaries and employee benefits 64,600 64,338 262 65,705
Materials, supplies and services 67,200 66,125 1,075 68,021
Capital outlay 3,500 3,500 - 7,304 -
Total 135,300 133,963 1,337 141,030
Street Lighting: -
Salaries and employee benefits 9,800 8,698 1,102 7,515
Materials, supplies and services 110,900 111,896 (996) 109,317
Total 120,700 120,594 106 116,832 -
Street Cleaning:
Salaries and employee benefits 36,100 35,613 487 32,646 -
Materials, supplies and services 10,100 10,576 (476) 9,359
Capital outlay 15,000 15,000 - -
Total 61,200 61,189 11 42,005
60
B-3
CITY OF HOPKINS, MINNESOTA
_ GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance
favorable 1997
Budget Actual (unfavorable) Actual
PUBLIC WORKS(continued)
Municipal Parks:
Salaries and employee benefits $ 303,800 $ 301,373 $ 2,427 $ 285,627
Materials, supplies and services 109,800 111,635 (1,835) 102,786
Capital outlay 36,200 36,712 (512) 6,726
Total 449,800 449,720 80 395,139
Tree Service:
Salaries and employee benefits 83,700 85,859 (2,159) 69,239
Materials, supplies and services 38,800 36,604 2,196 35,174
Capital outlay 3,500 3,500 - 1,809
Total 126,000 125,963 37 106,222
TOTAL PUBLIC WORKS 1,622,995 1,619,260 3,735 1,518,274
RECREATION:
Activity Center
Salaries and employee benefits 144,300 146,210 (1,910) 126,994
Materials, supplies and services 67,000 64,799 2,201 52,447
Capital outlay 4,300 4,514 (214) 3,985
Total 215,600 215,523 77 183,426
Park and Recreation
Salaries and employee benefits 51,800 40,656 11,144 56,069
Materials, supplies and services 115,200 124,826 (9,626) 111,430
Capital outlay 100,100 100,100 - 150,000
Total 267,100 265,582 1,518 317,499
TOTAL RECREATION 482,700 481,105 1,595 500,925
UNALLOCATED:
Materials, supplies and services 20,555 20,255 300 23,586
Capital outlay 52,800 52,726 74 -
TOTAL UNALLOCATED 73,355 72,981 374 23,586
OTHER FINANCING USES
Transfer to other fund 11,600 - 11,600 8,479
TOTAL EXPENDITURES $ 6,981,280 $ 6,959,045 $ 22,235 $ 6,338,002
61
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62 —
CITY OF HOPKI NS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
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 admin-istrative
regulation for specified purposes.
Equipment Replacement Fund - This fund was established for the purpose of funding
replacement of equipment items that are expected to exceed $5000 in cost.
State Chemical Assessment Fund — This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Economic Development Fund - This fund was established to fund development
opportunities. Sources of funds are derived from the administration of loans and rental
property acquired with bonds and grants.
Real Estate Purchases and Sales Fund - This fund records the acquisition and disposition of
various properties with the proceeds used to improve city buildings.
Hennepin County CDBG - This fund accounts for receipt for Community Development
Block Grant funds and the issuance of loans and grants for housing rehabilitation.
Tax Increment Funds - These funds were established to record the use of tax increment
receipts and bond proceeds as applied in various Tax Increment Districts.
Paratransit Fund - This fund was established to account for the receipt of grants and rider
fees and expenditures for transit service.
Housing Rehab Fund - This fund was established to account for funds received under the
Community Development Block Grant funds and Section 8.
Parking Fund - This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
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.
63
CITY OF HOPKINS,MINNESOTA
SPECIAL REVENUE FUNDS _
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997 !
State Real Estate Hennepin
Equipment Chemical Economic Purchases County —
Replacement Assessment Development &Sales CDBG
ASSETS
Cash and investments $ - $ - $ 514,555 $ 35,862 $ 128 —
Taxes receivable - _
Special assessments receivable - _
Accounts receivable - - 6,832 - 1,061 —
Rehabilitation loans receivable - - 785,956 - 119,408
Accrued interest receivable - - 5,066 387 -
Due from other funds - - 2,331,000 - _ —
Due from other governments - 10,337 - - 16,391
Advance to other funds - - 300,000 - _
Long term loans receivable - _ —
Restricted cash and investments - _
Total Assets $ - $ 10,337 $ 3,943,409 $ 36,249 $ 136,988
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ - $ 398 $ - $
Compensated absences payable - - 2,398 - _
Due to other funds - 10,337 - - 800
Due to other governments - - - - 1,789 —
Deferred revenue - - 200,000 -
Total Liabilities - 10,337 202,796 - 2,589
Fund balances:
Reserved for loans receivable - - 785,956 - 119,408
Reserved for Patio Homes - - - _ _
Reserved for Oaks of Mainstreet project - - - _ _
Reserved for Business District Plan - - - _ _
Reserved for advance to other funds - - 300,000 - -
Unreserved:
Designated for Equipment - - - _ _
Designated for Bldg. Imprvmnts. - - - 36,249 - —
Designated for Housing Rehab - - - - _
Undesignated - - 2,654,657 - 14,991
Total Fund Balances - - 3,740,613 36,249 134,399
Total Liabilities and Fund Balance $ - $ 10,337 $ 3,943,409 $ 36,249 $ 136,988
64
C
Tax Depot
Increment Housing Coffee Totals
Districts Para-Transit Rehab Parking Cable TV House 1998 1997
$ 1,175,970 $ 268 $ 1,015,859 $ 264,417 $ 256,000 $ 23,729 $ 3,286,788 $ 3,256,030
20,745
- 5,095 - - - 5,095 273,430
12,219 - 10,964 - 27,498 646 59,220 218,493
- 72,634 - - - 977,998 1,083,191
11,084 - 14,242 2,419 2,902 246 36,346 33,114
1,910,279 - - 130,666 - - 4,371,945 4,508,972
55,628 6,705 - 3,675 631 - 93,367 510,269
- - 300,000 -
2,150,000 - - - - - 2,150,000 2,150,000
201,622 - 164,000 - - - 365,622 3,814,284
$ 5,516,802 $ 6,973 $ 1,282,794 $ 401,177 $ 287,031 $ 24,621 $ 11,646,381 $ 15,868,528
$ 319,388 $ 3,949 $ 7,545 $ 2,750 $ 1,150 $ 4,180 $ 339,360 $ 475,691
3,189 - 761 1,595 7,943 10,517
4,527,854 - - - - - 4,538,991 5,562,173
250 - - - 2,039 6,686
66 - 2,785 - - 202,851 483,019
4,847,242 4,015 10,984 5,535 1,911 5,775 5,091,184 6,538,086
- 72,634 - - - 977,998 1,082,464
- 164,000 - - - 164,000 164,000
1,622 - - - - - 1,622 3,450,284
200,000 - - - - - 200,000 200,000
2,150,000 - - - - - 2,450,000 2,150,000
940,036
36,249 30,499
393,176 - - - 393,176 1,025,472
(1,682,062) 2,958 642,000 395,642 285,120 18,846 2,332,152 287,687
669,560 2,958 1,271,810 395,642 285,120 18,846 6,555,197 9,330,442
$ 5,516,802 $ 6,973 $ 1,282,794 $ 401,177 $ 287,031 $ 24,621 $ 11,646,381 $ 15,868,528
65
CITY OF HOPKINS, MINNESOTA
TAX INCREMENT FUNDS —
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment
1.1 1.2 2.1 2.3 2.4 —
ASSETS
Cash and investments $ 528,354 $ 37,596 $ 396,939 $ 7,643 $ 273
Taxes receivable —
Accounts receivable - 6,850
Accrued interest receivable 6,057 393 4,281 82 2
Due from other funds 1,910,279
Due from other governments 55,508
Long term loans receivable 2,150,000
Restricted cash and investments - 200,000
Total Assets $ 7,725- 5
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 4,188 $ - $ 230,790 $ 7,725 $ - —
Compensated abscenses payable
Due to other funds 1,550,000 2,436,300 - - 275
Total Liabilities 1,554,188 2,436,300 230,790 7,725 275
Fund Balance(Deficit): —
Reserved for Oaks of Mainstreet Project
Reserved for Business District Redevop. - 200,000 - -
Reserved for long term loan receivable - 2,150,000 - - - —
Unreserved:
Undesignated 946,010 (2,391,461) 170,430 - -
Total Fund Balance 946,010 (41,461) 170,430 - -
Total Liabilities and Fund Balance $ 2,500,198 $ 2,394,839 $ 401,220 $ 7,725 $ 275 —
66
Ca
Tax Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment Increment Totals
2.5 2.6 2.7 2.8 2.9 2.10 1998 1997
$ - $ 6,367 $ 159,687 $ 34,456 $ 4,536 $ 119 $ 1,175,970 $ 325,311
- - - - 11,990
- 2,286 1,722 480 - 881 12,219 142,824
269 - - - - 11,084 4,696
- - 1,910,279 2,001,898
120 - 55,628 500,000
2,150,000 2,150,000
- - - - 1,622 - 201,622 3,650,284
$ 49,614 $ 27,071 $ - $ - $ 319,388 $ 384,201
- - - - - - 3,346
510,279 - - 30,000 1,000 4,527,854 5,552,173
510,279 49,614 27,071 30,000 1,000 4,847,242 5,939,720
_ - - - - 1,622 - 1,622 3,450,284
- - - - - 200,000 200,000
- - - 2,150,000 2,150,000
- (501,357) 111,795 7,865 (25,344) - (1,682,062) (2,953,001)
(501,357) 111,795 7,865 (23,722) - 669,560 2,847,283
$ - $ 8,922 $ 161,409 $ 34,936 $ 6,278 $ 1,000 $ 5,516,802 $ 8,787,003
67
CITY OF HOPKINS,MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997
State Real Estate Hennepin
Equipment Chemical Economic Purchases County
Replacement Assessment Development &Sales CDBG
Revenues: —
Taxes:
Property taxes $ _ $ _ $ _ $ _ $ _
Tax increment _
Special assessments -
Intergovernmental:
Federal - _ _
- 25,706 —
State of Minnesota - 34,576
Other _ _
Franchise fee _ _
Fines and forfeitures - _
Interest on rehab loans - - 29,661 - 3,816
Charges for services - - - 3,700 -
Interest - - 40,450 2,050 - —
Other - - 401,653 - 6,059
Total Revenues - 34,576 471,764 5,750 35,581
Expenditures:
Salaries and employee benefits - 19,606 20,750 -
Materials,supplies and services - 14,970 73,777 - 35,581
Capital outlay:
Public improvements - _
Site improvements - _
Other equipment - - 466
Total Expenditures - 34,576 94,993 - 35,581
Excess(deficiency)of revenues over expenditures - - 376,771 5,750 -
Other Financing Sources(Uses):
Proceeds of bond issue - -
Operating transfers in - - _ _ _ —
Operating transfers out - - (603) -
Total Other Financing Sources(Uses) - - (603) - -
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses - - 376,168 5,750 -
Fund Balance-January 1 940,036 - 3,364,445 30,499 134,399 —
Prior period adjustment
Residual equity transfer out (940,036) - - -
Fund Balance-December 31 $ - $ - $ 3,240,613 $ 36,249 $ 134,399 —
68
C-1
Tax Depot
Increment Housing Coffee Totals
Districts Para-Transit Rehab Parking Cable TV House 1998 1997
$ - $ - $ - $ - $ - $ - $ - $ 456,244
1,951,190 - - - - - 1,951,190 1,399,804
- 267,636 - - - 267,636 98,498
- 52,799 - - - 78,505 98,328
42,384 - - - 26,168 103,128 533,128
58,911 58,911 -
103,397 - 103,397 165,129
24,374 - - 24,374 5,789
3,373 - - - 36,850 50,410
4,041,005 15,745 - 30,835 289 22,680 4,114,254 4,681,494
170,775 - 69,984 14,403 14,462 2,541 314,665 487,227
202,483 - 130 - - 3,064 613,389 438,130
6,365,453 58,129 393,922 69,612 118,148 113,364 7,666,299 8,414,181
44,859 5,743 111,301 72,564 44,479 51,626 370,928 289,323
180,040 . 49,428 31,101 40,588 39,244 42,892 507,621 836,496
1,141
1,842,314 - - - - - 1,842,314 10,431,910
17,164 3,403 15,409 - 36,442 284,097
2,067,213 55,171 159,566 116,555 99,132 94,518 2,757,305 11,842,967
4,298,240 2,958 234,356 (46,943) 19,016 18,846 4,908,994 (3,428,786)
- - - - - - - 1,700,000
615,603 - - - - - 615,603 1,914,754
(7,091,566) - (267,637) - - - (7,359,806) (5,223,523)
(6,475,963) - (267,637) - - - (6,744,203) (1,608,769)
(2,177,723) 2,958 (33,281) (46,943) 19,016 18,846 (1,835,209) (5,037,555)
2,847,283 - 1,305,091 442,585 266,104 - 9,330,442 14,166,260
201,737
(940,036) -
$ 669,560 $ 2,958 $ 1,271,810 $ 395,642 $ 285,120 $ 18,846 $ 6,555,197 $ 9,330,442
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT FUNDS _
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
Year Ended December 31, 1998 -
With Comparative Totals for Year Ended December 31, 1997
Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment
1.1 1.2 2.1 2.3 2.4 -
Revenues:
Taxes:
Tax increment $ 1,092,087 $ 75,053 $ 604,556 $ - $ -
State of Minnesota
Program income
Interest 23,773 393 11,302 435 8 -
Other - 77,829
Total Revenues 1,115,860 153,275 615,858 435 8
Expenditures:
Salaries and employee benefits 20,392 - 24,467 - -
Materials, supplies and services 6,034 1,197 4,084 7,725 - -
Capital outlay:
Land acquisitions
Site improvements 4,142 75,962 230,222 - - -
Total Expenditures 30,568 77,159 258,773 7,725 -
Excess(deficiency)of revenues over 1,085,292 76,116 357,085 (7,290) 8 -
expenditures
Other Financing Sources(Uses) -
Operating transfer in - 615,000 - - 64
Operating transfer to capital projects
Operating transfer to debt service (679,000) - (216,600) - (275)
Total Other Financing Sources(Uses) (679,000) 615,000 (216,600) - (211)
Excess(deficiency)of revenues over -
expenditures and other financing uses 406,292 691,116 140,485 (7,290) (203)
Fund balance(deficit)-January 1 539,718 (732,577) 29,945 7,290 203
Prior period adjustment - - - - -
Fund balance(deficit)-December 31 $ 946,010 $ (41,461) $ 170,430 $ - $ -
70
C-la
Tax Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment Increment Totals
2.5 2.6 2.7 2.8 2.9 2.10 1998 1997
$ - $ 16,738 $ 108,149 $ 46,415 $ 8,192 $ - $ 1,951,190 $ 1,399,804
- 500,000
4,041,005 - 4,041,005 4,022,041
- 906 6,115 938 126,876 29 170,775 275,207
3,634 111,139 9,881 202,483 417,825
21,278 114,264 47,353 4,287,212 9,910 6,365,453 6,614,877
44,859 63,280
1,175 108,988 28,223 12,704 9,910 180,040 487,104
1,141
10,058 1,521,930 - 1,842,314 8,536,910
1,175 108,988 38,281 1,534,634 9,910 2,067,213 9,088,435
20,103 5,276 9,072 2,752,578 - 4,298,240 (2,473,558)
615,603 1,906,000
- - - (20,000) - (20,000) -
- - (6,175,691) - (7,071,566) (5,052,119)
_ 539 - - - (6,195,691) - (6,475,963) (3,146,119)
539 20,103 5,276 9,072 (3,443,113) - (2,177,723) (5,619,677)
(539) (521,460) 106,519 (1,207) 3,419,391 - 2,847,283 8,265,280
- - - - - - - 201,680
$ - $ (501,357) $ 111,795 $ 7,865 $ (23,722) $ - $ 669,560 $ 2,847,283
71
C-2
CITY OF HOPKINS, MINNESOTA
STATE CHEMICAL ASSESSMENT TEAM FUND
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance-- —
favorable 1997
Budget Actual (unfavorable) Actual
Revenues: —
Intergovernmental revenue:
State grant $ 55,000 $ 34,576 $ (20,424) $ -
Total Revenues 55,000 34,576 (20,424) -
Expenditures:
Salaries and employee benefits 15,000 19,606 (4,606) - —
Materials, supplies and services 40,000 14,970 25,030 -
Total Expenditures 55,000 34,576 20,424 -
Excess of revenues over expenditures
Fund Balance-January 1
Fund Balance- December 31 $
72 —
_ C-3
CITY OF HOPKINS, MINNESOTA
ECONOMIC DEVELOPMENT FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance-
favorable 1997
Budget Actual (unfavorable) Actual
Revenues:
Interest on rehabilitation loans $ 35,000 $ 29,661 $ (5,339) $ 41,113
Charges for services - - - 81,875
Interest 71,000 40,450 (30,550) 68,212
Other 4,000 401,653 397,653 2,000
Total Revenues 110,000 471,764 361,764 193,200
Expenditures:
Salaries and employee benefits 15,100 20,750 (5,650) 15,170
Materials, supplies and services 86,100 73,777 12,323 46,801
Capital outlay:
Other equipment 466 466 - -
Total Expenditures 101,666 94,993 6,673 61,971
Excess of revenues over expenditures 8,334 376,771 368,437 131,229
Other Financing Sources(Uses):
Operating transfer toTax Increment Funds - (603) (603) -
Operating transfer from Tax Increment Fund - - - 275
Total Other Financing Sources (Uses) - (603) (603) 275
Excess of revenues and other financing
sources over expenditures 8,334 376,168 368,437 131,504
Fund Balance-January 1 3,364,445 3,364,445 - 3,232,941
Fund Balance- December 31 $ 3,372,779 $ 3,740,613 $ 367,834 $ 3,364,445
73
C-4
CITY OF HOPKINS,MINNESOTA
REAL ESTATE PURCHASES AND SALES FUND
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL —
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance--
favorable 1997
Budget Actual (unfavorable) Actual
Revenues: —
Charges for services $ 3,700 $ 3,700 $ - $ 3,700
Interest - 2,050 2,050 1,396 _
Total Revenues 3,700 5,750 2,050 5,096
Expenditures:
Excess of revenues over expenditures 3,700 5,750 2,050 5,096
Fund Balance-January 1 30,499 30,499 - 25,403
Fund Balance-December 31 $ 34,199 $ 36,249 $ 2,050 $ 30,499
74 —
C-5
CITY OF HOPKINS,MINNESOTA
_ PARA-TRANSIT FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance--
favorable 1997
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grant(Para-Transit) $ 42,400 $ 42,384 $ (16) $ 33,128
Charges for services 19,900 15,745 (4,155) 18,347
Interest - - - 35
Total Revenues 62,300 58,129 (4,171) 51,510
Expenditures:
Salaries and employee benefits 8,200 5,743 2,457 6,186
Materials, supplies and services 65,700 49,428 16,272 53,803
Total Expenditures 73,900 55,171 18,729 59,989
Excess(deficiency)of revenues over expenditures (11,600) 2,958 14,558 (8,479)
Other Financing Sources:
Operating transfer from the General Fund 11,600 - (11,600) 8,479
Excess of revenues and other financing
sources over expenditures - 2,958 2,958 -
Fund Balance- January 1
Fund Balance-December 31 $ - $ 2,958 $ 2,958 $ -
75
C-6
CITY OF HOPKINS, MINNESOTA
HOUSING REHAB FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL _
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997 _
1998 _
Variance--
favorable 1997
Budget Actual (unfavorable) Actual
Revenues: '
Special assessments $ 314,300 $ 267,636 $ (46,664) $ 98,498
Intergovernmental:
Federal - Section 8 46,000 52,799 6,799 43,256
Charges for services - - - 525,401
Interest 7,000 69,984 62,984 86,057 _
Interest on rehabilitation loans 9,000 3,373 (5,627) 5,452
Other - 130 130 3,721
Total Revenues 376,300 393,922 17,622 762,385
Expenditures:
Salaries and employee benefits 127,700 111,301 16,399 92,286 _
Materials, supplies and services 22,800 31,101 (8,301) 76,771
Capital outlay:
Office equipment&furnishings 11,000 9,189 1,811 -
Computers 2,104 (2,104) -
Other equipment 5,871 5,871 - -
Patio Homes - - - 1,895,000
Total Expenditures 167,371 159,566 7,805 2,064,057
Excess(deficiency)of revenues over expenditures 208,929 234,356 25,427 (1,301,672)
Other Financing Sources(Uses):
Proceeds from bond issue - - - 1,700,000
Operating transfer to debt service, 1995 - Housing (98,700) (98,629) 71 (171,404)
Operating transfer to debt service, 1997- Housing (174,600) (169,008) 5,592 -
Total Other Financing Sources(Uses) (273,300) (267,637) 5,663 1,528,596
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses (64,371) (33,281) 31,090 226,924
Fund Balance-January 1 1,305,091 1,305,091 - 1,078,126
Prior period adjustment - - - 41
Fund Balance-December 31 $ 1,240,720 $ 1,271,810 $ 31,090 $ 1,305,091
76
C-7
CITY OF HOPKINS, MINNESOTA
PARKING FUND
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance-
favorable 1997
Budget Actual (unfavorable) Actual
Revenues:
Court fines $ 18,000 $ 24,374 $ 6,374 $ 5,789
Charges for services 37,000 30,835 (6,165) 29,995
Interest 5,000 . 14,403 9,403 13,223
Total Revenues 60,000 69,612 9,612 49,007
Expenditures:
Salaries and employee benefits 63,300 72,564 (9,264) 59,483
Materials, supplies and services 65,400 40,588 24,812 55,167
Capital outlay:
Computers - 2,103 (2,103) -
Other equipment 1,300 1,300 - -
Total Expenditures 130,000 116,555 13,445 114,650
Deficiency of revenues over expenditures (70,000) (46,943) 23,057 (65,643)
Fund Balance-January 1 442,585 442,585 - 508,240
Prior period adjustment - - (12)
Fund Balance-December 31 $ 372,585 $ 395,642 $ 23,057 $ 442,585
77
C-8
CITY OF HOPKINS,MINNESOTA
CABLE TV FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 1998
With Comparative Actual Amounts for Year Ended December 31, 1997
1998
Variance--
favorable 1997
Budget Actual (unfavorable) Actual
Revenues:
Franchise fees $ 84,000 $ 103,397 $ 19,397 $ 165,129
Charges for services - 289 289 135
Interest 2,400 14,462 12,062 10,337
Total Revenues 86,400 118,148 31,748 175,601
Expenditures:
Salaries and employee benefits 53,100 44,479 8,621 52,918
Materials, supplies and services 48,600 39,244 9,356 37,183
Capital outlay 13,955 15,409 (1,454) 5,345
Total Expenditures 115,655 99,132 16,523 95,446
Excess(deficiency)of revenues over expenditures (29,255) 19,016 48,271 80,155
Fund Balance-January 1 266,104 266,104 - 185,921
Prior period adjustment - - - 28
Fund Balance- December 31 $ 236,849 $ 285,120 $ 48,271 $ 266,104
78
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
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.
79
CITY OF HOPKINS,MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
Taxable Taxable HRA
Improvement Redevelopment G.O. Revenue Taxable D Redevelopment
Revolving Refunding Bonds Bonds Redevelopment Refunding C Redevelopment
Bonds of Bonds of Series B Series A Bonds of Bonds of Bonds of
1990 1992 1996 1996 1996 1993 1996
ASSETS
Cash and investments $ 52,440 $ 183,210 $ - $ - $ 30,942 $ 91,015 $ 18,205
Taxes receivable 1,380
Special assessments receivable
Accrued interest receivable 566 1,968 - - 983 982 846
Due from other funds - 275
Restricted cash and investments - - - - 60,184 - 60,184
Total Assets $ 54,386 $ 185,453 $ - $ - $ 92,109 $ 91,997 $ 79,235
LIABILITIES AND FUND BALANCE
Liabilities:
Due to other funds $ - $ - $ _ $ _ $ _ $ _ $ _
Deferred revenue 737
Total Liabilities 737
Fund Balance:
Reserved for debt service 53,649 185,453 - - 92,109 91,997 79,235
Total Liabilities and Fund Balance $ 54,386 $ 185,453 $ - $ - $ 92,109 $ 91,997 $ 79,235
80
D
Park and Park and
Redevelopment Recreational Improvement Recreational
Refunding A Facilities Revolving Refunding D Housing Redevelopment Housing
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Totals
1993 1990 1992 1993 1995 1997 1997 1998 1997
$ 184,443 $ 2,027 $ 174,554 $ 202,146 $ 92,775 $ 164,611 $ 108,755 $ 1,305,123 $ 1,367,274
739 5,337 - - - 7,456 7,474
1,285,085 3,324,382 4,609,467 -
1,989 8 995 2,194 437 1,775 284 13,027 11,950
2,035 - - - 2,310 -
- - - - - 120,368 -
$ 186,432 $ 2,035 $ 176,288 $ 211,712 $ 1,378,297 $ 166,386 $ 3,433,421 $ 6,057,751 $ 1,386,698
-$ - $ 2,035 $ - $ - $ - $ - $ - $ 2,035 $ -
488 3,143 1,285,085 - 3,324,382 4,613,835 4,860
2,035 488 3,143 1,285,085 - 3,324,382 4,615,870 4,860
186,432 - 175,800 208,569 93,212 166,386 109,039 1,441,881 1,381,838
-$ 186,432 $ 2,035 $ 176,288 $ 211,712 $ 1,378,297 $ 166,386 $ 3,433,421 $ 6,057,751 $ 1,386,698
81
CITY OF HOPKINS,MINNESOTA
DEBT SERVICE FUNDS -
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997
Taxable Taxable HRA
Improvement Redevelopment G.O. Revenue Taxable D Redevelopment
Revolving Refunding Bonds Bonds Redevelopment Refunding C Redevelopment _
Bonds of Bonds of Series B Series A Bonds of Bonds of Bonds of
1990 1992 1996 1996 1996 1993 1996
Revenues:
Taxes:
General property taxes $ 45,964 $ - $ _ $ _ $ _ $ _ $ _
Fiscal disparities 7,871
Intergovernmental: '
State of Minnesota
Interest 865 - - - 3,078 849 2,123
Total Revenues 54,700 - - - 3,078 849 2,123
Expenditures:
Bonds matured 50,000 295,000 3,795,000 1,970,000 - 20,000 -
Interest on bonds 10,510 63,654 222,089 68,234 50,822 136,780 28,500
Fiscal agent charges 300 450 - - 451 300 451
Total Expenditures 60,810 359,104 4,017,089 2,038,234 51,273 157,080 28,951
Excess(deficiency)of revenues over
expenditures (6,110) (359,104) (4,017,089) (2,038,234) (48,195) (156,231) (26,828) '
Other Financing Sources:
Operating transfer from P.I.R.Fund - - - _ _ - _
Operating transfer from Tax Increment 1.1 - 360,000 - - - 135,000 -
Operating transfer from Tax Increment 2.1 - - - - - - 1,000
Operating transfer from Tax Increment 2.3 - 275 - - - _ _
Operating transfer from Tax Increment 2.9 - - 4,017,089 2,038,234 60,184 - 60,184
Operating transfer from Housing Rehab - - - _ _ - _
Total Other Financing Sources - 360,275 4,017,089 2,038,234 60,184 135,000 61,184
Excess(deficiency)of revenues and other
financing sources over expenditures (6,110) 1,171 - - 11,989 (21,231) 34,356
Fund Balance-January 1 59,759 184,282 - - 80,120 113,228 44,879
Residual equity transter
Fund Balance-December 31 $ 53,649 $ 185,453 $ - $ - $ 92,109 $ 91,997 $ 79,235
82
D-1
Park and Park and
Redevelopment Recreational Improvement Recreational
Refunding A Facilities Revolving Refunding D Housing Redevelopment Housing
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Totals
1993 1990 1992 1993 1995 1997 1997 1998 1997
$ - $ - $ 30,642 $ 204,283 $ - $ - $ - $ 280,889 $ 335,125
5,071 37,131 - - - 50,073 51,820
161
6,123 - 375 3,073 1,690 1,018 - 19,194 34,150
6,123 - 36,088 244,487 1,690 1,018 - 350,156 421,256
160,000 140,000 130,000 25,000 25,000 85,000 - 6,695,000 2,625,000
31,413 4,334 72,082 89,690 60,503 106,921 152,777 1,098,309 1,115,671
300 552 300 300 150 601 452 4,607 3,193
191,713 144,886 202,382 114,990 85,653 192,522 153,229 7,797,916 3,743,864
(185,590) (144,886) (166,294) 129,497 (83,963) (191,504) (153,229) (7,447,760) (3,322,608)
168,600 - - - - 168,600 168,000
_ 184,000 - - - - - - 679,000 740,000
- 215,600 - 216,600 203,200
- - - - 275 -
- - - - 6,175,691 2,252,644
- 98,629 - 169,008 267,637 171,404
184,000 - 168,600 - 98,629 215,600 169,008 7,507,803 3,535,248
(1,590) (144,886) 2,306 129,497 14,666 24,096 15,779 60,043 212,640
188,022 146,921 173,494 77,037 78,546 142,290 93,260 1,381,838 1,169,198
(2,035) - 2,035 - - - -
$ 186,432 $ - $ 175,800 $ 208,569 $ 93,212 $ 166,386 $ 109,039 $ 1,441,881 $ 1,381,838
---------------
83
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84 —
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
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.
_ Permanent Improvement Revolving Fund - The Permanent Improvement Revolving
Fund is employed to finance and account for the construction and financing of
certain public improvements such as residential streets, sidewalks, or storm sewers
_ or the provision of services which are to be paid for wholly or in part from special
assessments levied against benefitted property. The fact that special assessment
improvements are paid for completely or in part by property owners in a limited
geographical area deemed to be specially benefitted distinguishes them from
improvements which benefit the entire community and which are paid for out of
general revenues or through the issuance of general obligation bonds.
The PIR Fund also accounts for the collection of special assessments and other
revenues pledged for the payment of principal and interest on outstanding special
assessment bonds.
85
E
CITY OF HOPKINS,MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
Municipal Permanent
Park State Aid Improvement Totals _
Improvements Construction Revolving 1998 1997
ASSETS
Cash and investments $ 27,092 $ 1,592,473 $ 321,238 $ 1,940,803 $ 2,685,033 _
Special assessments receivable - - 2,328,409 2,328,409 2,201,321
Accounts receivable - - 105,001 105,001 1,027,233
Accrued interest receivable 76 17,327 5,656 23,059 25,594
Due from other funds - - 501,759 501,759 -
Due from other governments - 422,572 - 422,572 24,111
Total Assets $ 27,168 $ 2,032,372 $ 3,262,063 $ 5,321,603 $ 5,963,292
LIABILITIESAND FUND BALANCE
Liabilities:
Accounts payable $ - $ 2,755 $ 590 $ 3,345 $ 4,572
Contract-retained percentage - - 17,288 17,288 64,564
Due to other funds - 347,314 130,666 477,980 156,799
Deferred revenue - 404,491 2,322,073 2,726,564 2,561,486
Total Liabilities - 754,560 2,470,617 3,225,177 2,787,421
Fund Balance: _
Unreserved:
Designated for street improvements - 1,277,812 791,446 2,069,258 2,694,876
Undesignated 27,168 - - 27,168 480,995 _
Total Fund Balance 27,168 1,277,812 791,446 2,096,426 3,175,871
Total Liabilities and Fund Balance $ 27,168 $ 2,032,372 $ 3,262,063 $ 5,321,603 $ 5,963,292
86
E-1
CITY OF HOPKINS,MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND
_ CHANGES IN FUND BALANCE
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997
Municipal Permanent
Park State Aid Improvement Totals
Improvements Construction Revolving 1998 1997
Revenues:
Special assessments $ - $ - $ 555,012 $ 555,012 $ 437,925
Intergovernmental:
State of Minnesota - 36,810 - 36,810 1,329,246
_ Watershed District - - - -
School District 270 - - - -
Fees 2,100 - - 2,100 -
Interest earned 352 91,731 62,464 154,547 115,777
Other - - - - 36,308
Total Revenues 2,452 128,541 617,476 748,469 1,919,256
Expenditures:
Projects - 22,448 3,229 25,677 77,698
Street improvements - 12,654 2,060,876 2,073,530 987,673
Landfill - - 31,379 31,379 56,873
Alley reconstruction - - 75,640 75,640 82,770
Total Expenditures - 35,102 2,171,124 2,206,226 1,205,014
Excess(deficiency)of revenues over expenditures 2,452 93,439 (1,553,648) (1,457,757) 714,242
Other Financing Sources(Uses)
Proceeds from bond issuance - - - - 2,240,000
Operating transfers from TIF District 20,000 - - 20,000 -
Operating transfers from Enterprise Funds - - 154,445 154,445 -
Operating transfers from State Construction Fund - - 347,314 347,314 116,000
Operating transfers to P.I.R.Fund - (347,314) - (347,314) (116,000)
Operating transfers to Tax Increment 2.1 Fund - - - - (50,000)
Operating transfers to Debt Service- 1992 - - (168,600) (168,600) (168,000)
Total Other Financing Sources(Uses) 20,000 (347,314) 333,159 5,845 2,022,000
Excess of revenues and other financing sources
over expenditures and other financing uses 22,452 (253,875) (1,220,489) (1,451,912) 2,736,242
Fund Balance-January 1 4,716 1,531,687 1,639,468 3,175,871 739,629
Prior period adjustment - - 372,467 372,467 -
Fund Balance-January 1,as restated 4,716 1,531,687 2,011,935 3,548,338 739,629
Residual equity transfer to Enterprise Fund - - - - (300,000)
Fund Balance-December 31 $ 27,168 $ 1,277,812 $ 791,446 $ 2,096,426 $ 3,175,871
87
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88 _
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
ENTERPRISE 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:
Water Utility Fund
Sewer Utility Fund
Refuse Utility Fund
Storm Sewer Utility Fund
Pavilion/Ice Arena Fund
Art Center Fund
Housing Authority Fund
89
CITY OF HOPKINS,MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
Water Sewer Refuse
ASSETS -
Utility Utility Utility
Current assets:
Cash and cash equivalents $ 463,150 $ 707,577 $ 675,157
Accounts receivable 84,901 137,263 48,387
Accrued interest receivable 4,652 10,288 7,298
Due from other funds 530,000
Due from other governments - 28,609 -
Inventory 14,834 9,385 748
Prepaid expenses - - 200
Total current assets 567,537 1,423,122 731,790
Property and equipment
Land and land improvements 16,447 5,150
Buildings and structures 44,486 - 302,727
Distribution system 6,115,660 4,673,187 - -
Water meters 99,200
Machinery and equipment 224,881 193,107 353,298
Construction in progress 3,590 32,913 -
Total property and equipment 6,504,264 4,904,357 656,025
Less accumulated depreciation 2,774,667 2,257,295 303,586
Net property and equipment 3,729,597 2,647,062 352,439
Other Assets:
Long-term receivable-Metro Waste Control Comm. - 51,803
Restricted cash and cash equivalents-debt service
Total other assets _ - 51,803 _
Total Assets -s084,22T- -
LIABILITIES AND FUND EQUITY
Current Liabilities: -
Accounts payable $ 20,690 $ 20,697 $ 22,907
Compensated absences payable 33,492 26,651 3,893
Due to other funds 6,961 4,395 7,788
Due to other governments 504 20,000 4,040 -
Deferred revenue _ _
Accrued interest payable _
Bonds payable _
Total Current Liabilities 61,647 71,743 38,628 -
Long-term Liabilities:
Deferred revenue - 51,803 -
Advance from other funds(net of current portion) - _ _ -
Bonds payable(net of current portion) _ _
Total Long-term Liabilities - 51,803 -
Total Liabilities 61,647 123,546 38,628
Fund Equity:
Contributed capital-governmental grant - 472,684 -
Contributed capital
Retained Earnings:
Reserved for debt service
Unreserved 4,235,487 3,525,757 1,045,601
Total Retained Earnings 4,235,487 3,525,757 1,045,601
Total Fund Equity 4,235,487 3,998,441 1,045,601
Total Liabilities and Fund Equity
90
F
Storm Sewer Pavilion/ Housing Totals
Utility Ice Arena Art Center Authority 1998 1997
$ 522 $ 34,651 $ 275,927 $ 59,824 $ 2,216,808 $ 2,768,675
48,302 31,851 251 45,992 396,947 420,339
372 3,196 - 25,806 28,636
- - 530,000 430,000
10,600 265 - - 39,474 11,387
_ - 24,967 26,949
-- - - - 5,923 6,123 8,146
59,424 67,139 279,374 111,739 3,240,125 3,694,132
300,000 - 321,597 21,597
2,363,266 3,820,618 - 6,531,097 347,213
4,968,416 52,726 - - 15,809,989 15,290,761
- 99,200 100,150
57,835 14,593 - 843,714 836,444
899,693 - - - 936,196 36,284
5,868,109 21473,827 4,135,211 - 24,541,793 16,632,449
770,923 413,895 79,708 - 6,600,074 5,783,808
5,097,186 2,059,932 4,055,503 - 17,941,719 10,848,641
51,803 76,209
250,000 - - - 250,000 250,000
- - -
301,803 326,209
$5406,610� $ 21,483,647 T--TT,868,982
$ 40,144 $ 13,276 $ 9,559 $ 25,686 $ 152,959 $ 166,073
4,808 18,403 - 87,247 70,377
665,301 - - - 684,445 430,000
226 - - 24,770 3,613
- 49,998 - 49,998 -
44,808 - - - 44,808 44,808
140,000 - - - 140,000 135,000
890,253 18,310 77,960 25,686 1,184,227 849,871
- 51,803 76,209
915,000 - 915,000 -
2,075,000 - - - 2,075,000 2,215,000
2,075,000 - 915,000 - 3,041,803 2,291,2U9-
2,965,253 18,310 992,960 25,686 4,226,030 3,141,080
500,000 - 972,684 472,684
2,085,025 3,320,618 - 5,405,643 -
250,000 - - - 250,000 250,000
2,191,357 23,736 (478,701) 86,053 10,629,290 11,005,218
2,441,357 23,736 (478,701) 86,053 10,879,290 11,255,218
2,441,357 2,108,761 3,341,917 86,053 17,257,617 11,727,902
$ 5,40TUM- 2,127,071 4,334,877- s 111,739 1,483,647 14,868,98T-
91
CITY OF HOPKINS,MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,
EXPENSES,AND CHANGES IN RETAINED EARNINGS -
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997 -
Water Sewer Refuse
Utility Utility Utility -
Operating revenues:
Charges for services $ 797,704 $ 1,503,256 $ 483,012
Admissions and fees - - 81,169
Rental
Leases 11,340
Other 14,536 28,155 12,618 _
Total Operating Revenues 823,580 1,531,411 576,799
Operating expenses(excluding depreciation)
Salaries and employee benefits 288,725 156,209 195,157 -
Materials,supplies and services 390,057 225,132 239,101
Disposal costs - 861,185 145,062
Total Operating Expenses(excluding depreciation) 678,782 1,242,526 579,320 -
Operating income(loss)before depreciation expense 144,798 288,885 (2,521)
Depreciation expense 161,623 58,620 32,952
Operating income(loss) (16,825) 230,265 (35,473)
Nonoperating revenue(expense)
Interest income 21,582 50,671 39,034
Interest/fiscal agent expense _
Intergovernmental grants - - 30,773
Operating transfer from Sanitary Sewer _
Operating transfer to Storm Sewer - (600,000)
Operating transfer to PIR fund (6,961) (4,395) (7,788)
Operating transfer to TIF District
Other - 2,354
Net Nonoperating Revenues(Expenses) 14,621 (551,370) 62,019
Net Income(loss) (2,204) (321,105) 26,546
Fund Equity
Retained Earnings-January 1 4,237,691 3,846,862 1,019,055
Prior period adjustments
Residual equity transfer in from Capital
Retained Earnings-December 31 4,235,487 3,525,757 1,045,601
Contributed Capital-January 1 - 472,684 -
Assets contributed by general fixed asset account group,
net of depreciation
Contributed Capital-December 31 $ - $ 472,684 $
92
F-1
Storm Sewer Pavilion/ Art Housing Totals
Utility Ice Arena Center Authority 1998 1997
$ 533,422 $ - $ 2,135 $ 194,863 $ 3,514,392 $ 3,394,842
51,273 12,711 - 145,153 132,051
192,155 37,342 - 229,497 200,085
137,998 - 149,338 30,666
21,200 4,832 2,951 12,573 96,865 84,159
554,622 248,260 193,137 207,436 4,135,245 3,841,803
24,641 152,291 158,489 35,947 1,011,459 824,694
85,653 85,339 99,952 174,201 1,299,435 1,129,712
1,006,247 1,036,858
110,294 237,630 258,441 210,148 3,317,141 2,991,264
444,328 10,630 (65,304) (2,712) 818,104 850,539
110,085 57,099 78,109 - 498,488 419,942
334,243 (46,469) (143,413) (2,712) 319,616 430,597
12,424 3,003 16,912 1,518 145,144 145,183
(104,870) - (20,500) - (125,370) (156,447)
16,000 - - 46,773 30,952
600,000 - - - 600,000 -
- - - - (600,000) -
(135,301) - - - (154,445) -
- (615,000) - (615,000) -
- 5,000 - 7,354 100
372,253 19,003 (613,588) 1,518 (695,544) 19,788
706,496 (27,466) (757,001) (1,194) (375,928) 450,385
1,734,861 51,202 278,300 87,247 11,255,218 10,758,083
- - - (253,250)
300,000
2,441,357 23,736 (478,701) 86,053 10,879,290 11,255,218
472,684 472,684
2,085,025 3,820,618 - 5,905,643 -
$ - $ 2,085,025 $ 3,820,618 $ - $ 6,378,327 $ 472,684
93
CITY OF HOPKINS,MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1998
With Comparative Totals for Year Ended December 31, 1997 —
Water Sewer Refuse —
Cash Flows from Operating Activities: Utility Utility Utility
Operating income(loss) $ (16,825) $ 230,265 $ (35,473)
Adjustments to reconcile operating income(loss)to net cash —
provided by operating activities:
Depreciation expense 161,623 58,620 32,952
(Increase)decrease in: —
Accounts and accrued interest receivable (310) (6,041) 137
Due from other funds - (100,000) -
Due from other governments - (22,793) - —
Inventory (2,214) 3,179 1,017
Prepaid expense
Due from Metropolitan Waste Control Commission - 24,406 -
Accounts,compensated absences and accrued interest payable (20,783) 3,930 (7,629) —
Due to other funds 6,961 4,395 7,788
Due to other governments (2,751) 20,000 4,040
Deferred revenue - (24,406) -
Other (2,133) - -
Cash Provided by(used)Operating Activities 123,568 191,555 2,832 —
Cash Flows from Noncapital Financing Activities:
Intergovernmental grants - - 30,773
Operating transfer in —
Operating transfer out (6,961) (604,395) (7,788)
Cash Provided by(used)Noncapital Financing Activities (6,961) (604,395) 22,985 —
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (376,143) (22,348) (10,613)
Sale of property and equipment - 2,354 - —
Additions to contributed capital
Interest and other payments
Bond payments
Cash Used in Capital and Related Financing Activities (376,143) (19,994) (10,613)
Cash Provided by Investing Activities- interest received 21,582 50,671 39,034
Increase in Cash and Cash Equivalents (237,954) (382,163) 54,238
Cash and Cash Equivalents-January 1 701,104 1,089,740 620,929 —
Cash and Cash Equivalents-December 31 $ 463,150 $ 707,577 $ 675,167
94
F-2
Storm Sewer Pavilion/ Art Housing Totals
Utility Ice Arena Center Authority 1998 1997
$ 334,243 $ (46,469) $ (143,413) $ (2,712) $ 319,616 $ 430,597
110,085 57,099 78,109 - 498,488 419,942
25,095 (5,224) 478 12,087 26,222 327,223
- (100,000) (14,500)
(10,600) 5,306 - - (28,087) 34,524
_ - - - - 1,982 (14,678)
- - - 2,023 2,023 (3,170)
- - 24,406 23,467
33,011 (16,124) 4,482 6,869 3,756 140,980
235,301 - 915,000 - 1,169,445 (8,000)
(122) - - 21,167 3,613
- - 49,998 - 25,592 -
5,000 - 2,867 (26,617)
727,135 (5,534) 909,654 18,267 1,967,477 1,313,381
16,000 - - 46,773 30,952
600,000 - - - 600,000 -
(135,301) - (615,000) - (1,369,445) -
464,699 16,000 (615,000) - (722,672) 30,952
(967,924) (4,682) (302,080) - (1,683,790) (599,846)
2,354 6,178
- - - - - - 300,000
(104,870) - (20,500) - (125,370) (156,447)
(135,000) - - - (135,000) (125,000)
(1,207,794) (4,682) (322,580) - (1,941,806) (575,115)
12,424 3,003 16,912 1,518 145,144 145,183
(3,536) 8,787 (11,014) 19,785 (551,857) 914,401
254,058 25,864 286,941 40,039 3,018,675 2,104,274
$ 250,522 $ 34,651 $ 275,927 $ 59,824 $ 2,466,818 $ 3,018,675
95
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96 —
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.
97
G
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND —
BALANCESHEET
December 31, 1998
With Comparative Totals for December 31, 1997
1998 1997
Equipment Equipment
Replacement Replacement —
ASSETS
Current assets:
Cash and cash equivalents $ 1,139,590 $ -
Accounts receivable 680 -
Accrued interest receivable 9,590 -
Total current assets 1,149,860 -
Property and equipment
Machinery and equipment 3,921,267 -
Total property and equipment 3,921,267 -
Less accumulated depreciation (1,686,066) -
Net property and equipment 2,235,201 -
Total Assets $ 3,385,061 $ -
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable $ 8,714 $ -
Fund Equity:
Contributed capital 3,236,362 -
Retained Earnings:
Unreserved 139,985 -
Total Retained Earnings 139,985 -
Total Fund Equity 3,376,347 -
Total Liabilities and Fund Equity $ 3,385,061 $ -
98
_ G-1
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND
-` STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1998
1998 1997
Equipment Equipment
Replacement Replacement
Operating revenues:
— Charges for services $ 443,492 $ -
Operating expenses(excluding depreciation):
Materials, supplies and services 22,152 -
Operating income before depreciation 421,340 -
Depreciation expense 318,640 -
Operating income 102,700 -
Nonoperating revenue:
Interest 15,255 -
Other 22,030
Net nonoperating revenue 37,285
Net Income 139,985 -
Fund Equity:
Retained earnings- January 1 - -
Retained earnings- December 31 139,985 -
_ Contributed Capital- January 1 - -
Residual equity transfer in 940,036 -
Assets contributed by general fixed asset account
group,net of depreciation 2,296,326 -
Contributed Capital- December 31 $ 3,236,362 $ -
99
G-2 _
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND _
STATEMENT OF CASH FLOWS
Year Ended December 31, 1998 _
With Comparative Totals for Year Ended December 31, 1997
1998 1997
Equipment Equipment
Replacement Replacement
Cash Flows from Operating Activities:
Operating income(loss) $ 102,700 $ -
Adjustments to reconcile operating income(loss)to net cash
provided by operating activities:
Depreciation expense 318,640 -
(Increase)decrease in: —
Accounts and accrued interest receivable (10,270) -
Accounts,compensated absences and accrued interest payable 8,714 -
Cash Provided by Operating Activities 419,784 -
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (257,515) - _
Proceeds from sale of property and equipment 22,030 -
Additions to contributed capital 940,036 -
Cash Used in Capital and Related Financing Activities 704,551 -
Cash Provided by Investing Activities-interest received 15,255 - _
Increase in Cash and Cash Equivalents 1,139,590 -
Cash and Cash Equivalents-January 1
Cash and Cash Equivalents-December 31 $ 1,139,590 $ -
100
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TRUST FUNDS
Trust Funds are established to account for assets held by the City as a trustee for
others.
Deferred Compensation Plan - This fund accounts for employee payroll deferments
held by the City and for the liability for such deferments. It also accounts for
refunds received by the City on employee terminations and payments by the City to
former employees or employee heirs.
101
H —
CITY OF HOPKINS,MINNESOTA
TRUST FUND
BALANCESHEET —
December 31, 1998
With Comparative Totals for December 31, 1997 —
1998 1997
ASSETS
Cash and investments with plan administrators $ 2,903,178 $ 2,408,315 —
LIABILITIES AND FUND BALANCE --
Fund Balance: —
Reserved for plan participants 2,903,178 2,408,315
Total liabilities and fund balance $ 2,903,178 $ 2,408,315
102
H-1
CITY OF HOPKINS,MINNESOTA
EXPENDABLE TRUST FUND
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
_ Year ended December 31, 1998
With Comparative Amounts for Year Ended December 31, 1997
1998 1997
Revenues:
Interest $ 325,620 $ 347,557
Employee contributions 211,019 240,914
Total Revenues 536,639 588,471
Expenditures:
Earnings fees 225 -
Distributions to plan participants 41,551 49,355
Total Expenditures 41,776 49,355
Excess of revenues over expenditures 494,863 539,116
Fund Balance- January 1 2,408,315 -
Cummulative effect of adoption of GASB 32 - 1,869,199
Fund Balance- January 1 as Restated 2,408,315 1,869,199
Fund Balance- December 31 $ 2,903,178 $ 2,408,315
103
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104 —
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
ACCOUNT GROUPS
_ General Fixed Assets - Those fixed assets of a governmental jurisdiction which are
not accounted for in an Enterprise Fund. To be classified as a fixed asset in this
category, a specific piece of property must possess three attributes: (1) tangible
nature; (2) a life longer than the current fiscal year; and (3) a significant value.
General Long-Term Debt - General obligation bonds and other forms of long-term
debt supported by general revenues are obligations of a governmental unit as a
whole and not its individual constituent funds. Moreover, the proceeds of such
debt may be spent on facilities which are utilized in the operations of several funds.
For these reasons, the amount of unmatured, long-term debt indebtedness which is
backed by the full faith and credit of the government should be recorded and
accounted for in a separate self-balancing group of accounts titled the "General
Long-Term Debt Account Group". This debt group will include, in addition to the
conventional general obligation bonds, time warrants and notes which have a
_ maturity of more than one year from date of issuance. This account group does not
include general obligation water and sewer bonds, which are reflected in their
respective funds.
105
I
CITY OF HOPKINS,MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS
December 31, 1998
With Comparative Amounts for December 31, 1997
1998 1997
GENERAL FIXED ASSETS:
Land $ 3,969,249 $ 3,966,249
Buildings 2,434,855 8,608,845
Improvements other than buildings 14,979,037 12,810,968
Vehicles 340,657 2,429,320
Machinery and equipment 1,420,848 3,118,112
Construction in progress 303,047 203,047 _
Total General Fixed Assets $ 23,447,693 $ 31,136,541
INVESTMENT IN GENERAL FIXED ASSETS:
Investments in assets acquired prior to January 1, 1981 $ 5,391,126 $ 5,391,126
Investments in assets acquired after January 1, 1981:
General Fund 1,944,096 1,828,186
Special Revenue Funds 4,645,749 12,355,310
Capital Projects Funds 6,077,090 6,922,707
Special Assessments 5,086,585 4,436,165
Construction in progress 303,047 203,047
Total Investment in General Fixed Assets $ 23,447,693 $ 31,136,541
106
— I-1
CITY OF HOPKINS,MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1998
Buildings Improvements Equipment
and Other than and
Function and Activity Total Land StructuresDeductions Vehicles
Administration $ 1,873,524 $ 1,181,828 $ - $ 534,016 $ 157,680
Finance 62,528 - - - 62,528
Government buildings 663,597 - 606,687 - 56,910
Community services 22,183 - - - 22,183
Planning&Econ. Dev. 1,418,189 1,410,799 - - 7,390
Activity center 902,367 - 841,370 - 60,997
Police 529,415 - 20,649 11,470 497,296
Fire 96,776 - - - 96,776
Public works 15,071,943 288,104 788,748 13,529,479 465,612
Parks 2,504,124 1,088,518 177,401 904,072 334,133
Construction in progress 303,047 - - 303,047 -
Total $ 23,447,693 $ 3,969,249 $ 2,434,855 $ 15,282,084 $ 1,761,505
107
I-2
CITY OF HOPKINS, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY —
Year Ended December 31, 1998
General General
Fixed Assets Fixed Assets
January 1, December 31,
Function and Activity 1998 Additions Deductions 1998
Administration $ 1,872,835 $ 33,758 $ 33,069 $ 1,873,524
Finance 65,426 - 2,898 62,528
Government buildings 975,596 6,181 318,180 663,597
Community services 44,876 - 22,693 22,183
Planning& Economic Development 1,447,065 2,662 31,538 1,418,189 —
Activity center 906,854 3,515 8,002 902,367
Police 1,417,106 102,983 990,674 529,415
Fire 1,330,204 24,611 1,258,039 96,776 —
Public works 13,874,283 2,305,634 1,107,974 15,071,943
Parks 2,815,365 39,573 350,814 2,504,124
Pavilion/Ice Arena 2,363,266 - 2,363,266 - —
Arts Center 3,820,618 - 3,820,618 -
Construction in progress 203,047 100,000 - 303,047
Total $ 31,136,541 $ 2,618,917 $ 10,307,765 $ 23,447,693
108
_ J
CITY OF HOPKINS,MINNESOTA
_ GENERAL LONG-TERM DEBT ACCOUNT GROUP
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1998
With Comparative Amounts for December 31, 1997
1998 1997
AMOUNT AVAILABLE AND TO BE PROVIDED FOR
THE PAYMENT OF GENERAL LONG-TERM DEBT:
Amount available in debt service funds $ 1,441,881 $ 1,381,838
Amount available in special revenue funds 1,622 3,450,284
Amount to be provided by tax levies,tax increments,annual fees
and proceeds of real estate sales 12,930,040 16,236,421
— Total Available and to be Provided $ 14,373,543 $ 21,068,543
GENERAL LONG-TERM DEBT PAYABLE:
General obligation redevelopment bonds payable $ 12,888,543 $ 18,588,543
Special assessment debt with governmental commitment 1,485,000 2,480,000
Total General Long-Term Debt Payable $ 14,373,543 $ 21,068,543
109
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110 —
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION IIC
SUPPLEMENTAL FINANCIAL SCHEDULES
CITY OF HOPKINS,MINNESOTA —
SCHEDULE OF BONDS PAYABLE —
December 31, 1998
Final
Issue Maturity
Date Date Interest Rates&Dates
GENERAL OBLIGATION BONDS —
1997A Tax Increment 1-01-97 02-01-12 4.30- 5.25% (2/1; 8/1)
1997B Taxable Housing Improvement Area Bonds 05-15-97 02-01-18 6.45 - 7.85% (2/1; 8/1)
1996C Tax Increment 10-01-96 02-01-16 5.70% (2/1; 8/1) —
112
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CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE _
December 31, 1998
Final
Issue Maturity
Date Date Interest Rates&Dates
1996D Taxable Tax Increment- �£01-rf— 7.00 - 7.70% ;
1995 Housing Improvement Area Bonds 09-01-95 02-01-12 6.70- 8.00% (2/1; 8/1)
1993C Redevelopment Refunding 10-15-93 02-01-09 4.50-4.60% (2/1; 8/1)
1993A Redevelopment Refunding 10-15-93 06-01-03 3.45 -4.20% (6/1; 12/1)
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CITY OF HOPKINS,MINNESOTA
SCHEDULE OF BONDS PAYABLE _
December 31, 1998
Final
Issue Maturity
Date Date Interest Rates&Dates _
1992 Redevelopment Taxable Bonds 7( - 6 - 8.10% ;
1993C Park and Recreational Facilities Refunding 10-15-93 02-01-11 4.50-4.60% (2/1; 8/1)
TOTAL GENERAL OBLIGATION BONDS
SPECIAL ASSESSMENT BONDS:
General Obligation Improvement Bonds _
1990 Improvement Revolving Bonds 03-01-90 02-01-01 6.40- 6.85% (2/1; 8/1)
1992 Improvement Revolving Bonds 08-01-92 02-01-08 4.55 - 5.60% (2/1; 8/1)
TOTAL SPECIAL ASSESSMENT BONDS
116
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CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE _
December 31, 1998
Final
Issue Maturity
Date Date Interest Rates&Dates _
PROPRIETARY FUNDS BONDS:
General Obligation Revenue Bonds:
1993 Storm Sewer Utility Refunding Bonds 10-15-93 02-01-10 4.50-4.60% (2/1; 8/1)
TOTAL REVENUE BONDS
TOTAL CITY BONDS
118 _
Schedule 1
Authorized Principal
— Annual and Due in
Serial Payments Issued Retired Outstanding 1999
— 140,000 (1999) $ 2,445,000 $ 230,000 $ 2,215,000 $ 140,000
150,000 (2000)
160,000 (2001-2002)
_ 165,000 (2003)
180,000 (2004)
185,000 (2005)
— 190,000 (2006)
205,000 (2007)
215,000 (2008)
_ 225,000 (2009)
240,000 (2010)
— $ 2,445,000 $ 230,000 $ 2,215,000 $ 140,000
$ 20,028,543 $ 3,440,000 $ 16,588,543 $ 1,150,000
119
Schedule 2
CITY OF HOPKINS,MINNESOTA
SCHEDULE OF DEBT SERVICE REQUIREMENTS -ALL FUNDS
December 31, 1998 -
Total General Obligation Bonds Revenue Bonds
Principal Interest Principal Interest Principal Interest
1999 $ 1,150,000 $ 827,390 $ 1,010,000 $ 728,940 $ 140,000 $ 98,450
2000 1,200,000 764,582 1,050,000 672,657 150,000 91,925
2001 1,085,847 883,282 925,847 798,412 160,000 84,870 -
2002 1,036,502 850,052 876,502 772,542 160,000 77,510
2003 1,103,138 818,634 938,138 748,599 165,000 70,035
2004 990,620 785,164 810,620 723,064 180,000 62,100 -
2005 1,126,152 695,887 941,152 642,182 185,000 53,705
2006 1,276,284 527,205 1,086,284 482,125 190,000 45,080
2007 1,480,000 393,715 1,275,000 357,720 205,000 35,995
2008 1,535,000 316,361 1,320,000 290,026 215,000 26,335
2009 1,475,000 238,882 1,250,000 222,667 225,000 16,215 -
2010 820,000 177,609 580,000 172,089 240,000 5,520
2011 610,000 135,269 610,000 135,269
2012 490,000 100,779 490,000 100,779 -
2013 205,000 78,462 205,000 78,462
2014 215,000 64,394 215,000 64,394 -
2015 230,000 49,324 230,000 49,324
2016 250,000 32,912 250,000 32,912
2017 150,000 18,448 150,000 18,448 -
2018 160,000 6,280 160,000 6,280
$ 16,588,543 $ 7,764,631 $ 14,373,543 $ 7,096,891 $ 2,215,000 $ 667,740
120
Schedule 3
CITY OF HOPKINS,MINNESOTA
_ SCHEDULE OF FUNDING AVAILABLE
AND FUNDS REQUIRED FOR DEBT SERVICE
December 31, 1998
Total
CASH AND INVESTMENTS $ 1,425,491
DEFERRED TAX LEVIES:
Levy/Payable Years:
1998/99 1,270,000
1999/00 1,369,000
2000/01 1,306,000
2001/02 1,286,000
2002/03 1,256,000
2003/04 1,276,000
2004/05 1,259,000
2005/06 1,256,000
2006/07 1,186,000
2007/08 1,166,000
2008/09 400,000
2009/10 390,000
2010/11 227,000
2011/12 125,000
2012/13 124,000
2013/14 123,000
2014/15 127,000 14,146,000
Special Assessment Receivable 6,942,971
FUND AVAILABLE 22,514,462
BONDS/FUTURE INTEREST PAYABLE
Bonds 14,373,543
Future interest 7,096,891
FUNDS REQUIRED 21,470,434
EXCESS FUNDING $ 1,044,028
121
Schedule 4
CITY OF HOPKINS,MINNESOTA
SCHEDULE OF INSURANCE IN FORCE
Effective January 1, 1998 through December 31, 1998 _
Kind Type of Coverage
All Perils Coverage All buildings, personal property, and $16,920,098 _
(Blanket Limit) property in the open as filed with the
($5,000 deductible) League of Minnesota Cities
Insurance Trust _
Comprehensive Municipal Bodily Injury 750,000 _
Liability Insurance Coverage Property Damage 750,000
Including Public Officials Personal Injury 750,000
Business Auto Liability Liability 750,000 _
Personal Injury Protection Basic
Uninsured& Underinsured Motorist 750,000
(Comprehensive and Collision - _
$5,000 Deductible)
Business Equipment Coverage All Risk, Subject to Company Forms _
($5,000 Deductible)
Workers' Compensation Employees Statutory _
Employer 100,000
Volunteer Firefighters AD&D Catastrophic Loss 12,670 _
Blanket Accident Coverage Weekly income 65
Boilers& Machinery Liability Limit($5,000 Deductible) 5,000,000
Public Employee Blanket Bond Faithful Performance 100,000
($5,000 Deductible)
Open Meeting Law Defense Cost Per Lawsuit, Per Official 20,000
Reimbursement Agreement
122
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION III
STATISTICAL SECTION
123
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124 —
Table I
CITY OF HOPKINS,MINNESOTA
GOVERNMENTAL FUND TYPES -EXPENDITURES BY FUNCTION
Years 1989 Through 1998
(Amounts expressed in thousands)
(Unaudited)
Fiscal General Public Community Public Capital
Year Government Safety Development Works Recreation Other Outlay Total
1989 $ 1,315 $ 1,949 $ 576 $ 1,555 $ 117 $ 162 $ 5,815 $ 11,489
1990 1,445 2,111 530 1,450 117 139 5,687 11,479
1991 1,370 2,242 750 1,534 144 388 6,452 12,880
1992 1,439 2,221 629 1,454 99 26 3,172 9,040
1993 1,517 2,325 741 1,536 132 43 2,599 8,893
1994 1,609 2,481 956 1,574 112 92 4,717 11,541
1995 1,794 2,572 1,707 1,559 127 35 2,335 10,129
1996 1,240 2,727 634 1,587 146 29 4,265 10,628
1997 1,255 2,807 1,535 1,518 317 24 11,922 19,378
1998 945 3,311 1,201 1,732 576 73 4,085 11,923
Note:
- Includes General, Special Revenue and Capital Projects Funds.
Interest, issuance costs and fiscal charges are not included.
125
Table I1
CITY OF HOPKINS, MINNESOTA
GOVERNMENTAL FUND TYPES -REVENUES BY SOURCE
Years 1989 Through 1998 -
(Amounts expressed in thousands)
(Unaudited) -
Charges -
Taxes Use of For
and Money Services Licenses
Fiscal Special Intergovern- and and Other and Fines and
Year Assessments mental Property Revenue Permits Forfeitures Total
1989 $ 4,065 $ 2,167 $ 759 $ 932 $ 263 $ 158 $ 8,344 -
1990 4,473 2,466 5,009 912 193 150 13,203
1991 4,873 3,326 1,105 721 185 137 10,347
1992 5,058 2,682 865 705 226 154 9,690
1993 5,353 2,395 937 985 226 129 10,025
1994 5,274 2,919 612 992 264 114 10,175
1995 6,078 2,528 800 736 320 102 10,564
1996 5,776 3,018 797 922 352 83 10,948
1997 5,745 4,155 729 (1) 5,540 (2) 372 98 16,639
1998 6,695 2,424 588 (1) 5,090 (2) 337 134 15,268
Note: -
Includes General, Special Revenue and Capital Projects Funds.
(1) Includes only interest earnings
(2) Includes franchise fees and Oaks of Mainstreet real estate sales. -
126
— Table III
CITY OF HOPKINS, MINNESOTA
— PROPERTY TAX LEVIES AND COLLECTIONS
Years 1989 Through 1998
(Unaudited)
Collection Percentage Collection
of Current of Levy of Prior Percentage
Year's Taxes Collected Year's Taxes of Total
Year Total Tax During Fiscal During Fiscal During Fiscal Total Collections
Collect Lev 1 Period Period Period Collections to Tax Levy
1989 $ 2,343,745 $ 2,283,875 97.4 $ 20,261 $ 2,304,136 98.3%
1990 3,082,194 2,945,642 95.6 6,047 2,951,689 95.8%
1991 3,807,298 3,565,263 93.6 (25,880) 3,539,383 93.0%
1992 3,827,223 3,632,638 94.9 3,106 3,635,744 95.0%
1993 3,925,100 3,840,652 97.8 (10,395) 3,830,257 97.6%
1994 3,987,216 3,882,651 97.4 (36,765) 3,845,886 96.5%
1995 3,975,854 3,903,806 98.2 (43,761) 3,860,045 97.1%
1996 4,178,410 4,085,963 97.7 21,978 4,107,941 98.3%
1997 4,217,627 4,166,717 98.8 29,181 4,195,898 99.5%
1998 4,232,961 4,203,506 99.3 34,612 4,238,118 100.1%
(1)Tax levy is net of Homestead and Agricultural Credit Aid.
127
Table IV
CITY OF HOPKINS, MINNESOTA
TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY
Levy Years 1989 Through 1998 -
(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
1989 $ 16,239 $ 592,880 $ 238 $ 4,711 $ 16,477 $ 597,591 2.8
1990 16,788 615,377 251 5,069 17,039 620,446 2.7 -
1991 17,345 609,292 241 5,066 17,585 614,358 2.9
1992 16,088 594,796 243 5,066 16,331 599,862 2.7
1993 16,034 593,160 243 5,066 16,277 598,226 2.7 -
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
Tax capacity is stated after the effect of fiscal disparities. -
128
- Table V
CITY OF HOPKINS, MINNESOTA
_ PROPERTY TAX RATES-
DIRECT AND OVERLAPPING GOVERNMENTS
Years 1989 Through 1998
(Unaudited)
Payable
Fiscal Metro
Year cir School Coun Council Other 1 Total
1989 15.64 41.72 27.10 5.80 1.57 91.83
1990 18.98 42.04 27.92 5.63 1.41 95.98
- 1991 22.72 53.66 30.11 7.37 1.08 114.94
1992 23.64 61.30 34.33 6.00 0.64 125.91
1993 26.36 65.18 35.84 6.04 1.59 135.01
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
- (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. 3 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.
129
CITY OF HOPKINS, MINNESOTA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Years 1989 Through 1998
(Unaudited)
Current Special Percentage of
Assessment Current Special Current Collected
Fiscal Becoming Due Assessments During Fiscal
Period During Fiscal Period Collected Period
1989 $282,997 $273,257 96.6
1990 264,004 252,879 95.8
1991 274,155 242,454 88.4
1992 363,734 332,389 91.4
1993 412,221 345,557 83.8
1994 491,094 462,454 94.2
1995 555,611 506,417 91.2
1996 566,624 502,634 88.7
1997 523,252 424,691 81.2
1998 486,705 465,226 95.6
130
— Table VI
Total Deferred Special Assessment
Delinquent Specials Special Assessments Collected Balance End
Collected During Delinquent at End Fiscal of Fiscal
Fiscal Period of Fiscal Period Period Period
3,814 15,846 $ 32,862 $ 1,551,279
4,327 22,644 77,676 1,626,361
— 537 53,809 211,599 2,042,067
7,927 77,227 118,871 2,308,524
48,647 78,188 244,961 2,802,907
6,924 78,909 86,859 3,081,957
15,839 111,438 406,675 2,535,709
83,738 36,057 115,715 2,231,205
12,829 137,002 127,083 2,253,656
6,742 36,136 45,676 2,285,939
131
CITY OF HOPKINS,MINNESOTA
RATIO OF NET BONDED DEBT
TO TAX CAPACITY VALUE AND NET BONDED DEBT PER CAPITA
Pay Years 1989 Through 1998
(Unaudited)
Tax Capacity
Value Gross Cash and
Population After Fiscal Bonded Investments
Year W Disparities Debt 2 on Hand/Escrowed
1989 16,111 $ 18,743,721 $ 8,020,000 $ 614,355
1990 16,534 14,834,976 13,595,000 628,704 —
1991 16,534 15,098,819 13,651,000 1,074,837
1992 16,534 14,147,542 15,258,443 1,178,695
1993 16,534 13,100,726 15,622,343 (3) 1,302,870 —
1994 16,534 12,556,761 14,701,243 1,019,541
1995 16,534 12,910,496 14,605,143 932,467
1996 16,534 13,194,123 22,228,543 (4) 1,125,661 —
1997 16,665 11,936,742 23,418,543 (5) 1,617,274
1998 16,559 11,749,307 16,588,543 1,425,491
(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)The $8,720,000 of advance refunding bonds were escrowed to retire$7,750,000 bonds by —
February 1, 1998.
(4)Includes $3,795,000 of GO bonds and $3,795,000 of GO revenue bonds to be retired as soon as
possible from proceeds of Oaks of Mainstreet real estate sales. —
(5)Includes $3,795,000 of GO bonds and $1,970,000 of GO revenue bonds to be retired as soon as
possible from proceeds of Oaks of Mainstreet real estate sales.
132
Table VII
Debt Payable Ratio of
From Net Bonded Net
Enterprise Net Debt to Bonded
and HRA Bonded Tax Capacity Debt per
Revenues Debt Value Ca i:ta
$ 2,835,000 $ 4,570,645 24.40% $ 284
2,790,000 10,176,296 68.60 615
3,131,000 9,445,163 62.56 575
3,014,900 11,064,848 78.21 669
3,143,800 11,175,673 85.31 676
2,992,700 10,689,002 85.10 646
3,656,600 (b) 10,016,076 77.58 655
3,290,000 (b) 10,222,882 (a) 71.30 618
4,865,000 (b) 11,171,269 (a) 93.59 670
4,705,000 (b) 10,458,052 89.01 632
(a)excludes Oaks of Mainstreet debt to be paid from real estate sales.
(b) includes Housing Improvement debt to be paid from fees charged to the benefited
properties.
133
Table VIII
CITY OF HOPKINS,MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1998 —
(Unaudited)
MARKET VALUE $ 668,500,600
DEBT LIMIT 2%OF MARKET VALUE(Note A) $ 13,370,012 —
TOTAL BONDED DEBT $ 16,588,543
DEDUCTIONS(Note B):
Tax Increment Bonds $ 8,453,543
Revenue Bonds 2,215,000 _
Housing Improvement Bonds 2,490,000
Special Assessment Bonds 1,485,000
14,643,543
Amount Available in Debt Service Funds 1,441,881
Total Deductions 16,085,424
TOTAL DEBT APPLICABLE TO DEBT LIMIT 503,119
LEGAL DEBT MARGIN $ 12,866,893
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.
134
Table IX
CITY OF HOPKINS,MINNESOTA
_ COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 1998
(Unaudited)
Net General Percentage
Obligation Applicable City Share
Debt to City of Debt
Direct Debt
City of Hopkins $ 9,349,871 100.00% $ 9,349,871
Overlapping Debt
Hennepin County 143,267,872 1.27 1,819,502
Independent School District#270 (Hopkins) 46,876,188 15.35 7,195,495
Independent School District#283 12,033,074 0.37 44,522
Hennepin Suburban Park District(1) 12,406,953 1.69 209,678
Metropolitan Council(2) 104,048,189 0.65 676,313
Total Overlapping Debt 9,945,510
Total Direct and Overlapping Debt $ 19,295,381
— Direct Overlapping Total
Debt Ratios Debt lit Debt
Ratio of Debt Per Capita(16,559 Population) $565 $601 $1,166
Ratio of Debt to Tax Capacity Valuation
(after fiscal disparities)of$14,543,901 64.3% 68.4% 132.7%
Ratio of Debt to Estimated Market Valuation
of$730,032,200 1.3% 1.4% 2.7%
(1)The gross debt of the Hennepin Suburban Park District is exceeded by the amount in its sinking fund.
(2)The gross debt of the Metropolitan Council excludes bonds relating to the acquisition and improvement
of sewer systems in the seven-county metropolitan area. This debt is self-supportive from revenue
collected from area communities. Also excluded are Sports Facilities Revenue Bonds, Series 1979.
Source: County Auditor
135
Table X
CITY OF HOPKINS, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Years 1989 Through 1998
(Unaudited)
Percentage _
Total Total of Debt
Debt General to General
Year Principal Interest Service Expenditures(1) Expenditures
1990 $ - $ 77,327 $ 77,327 $ 11,478,693 0.7%
1991 - 185,585 185,585 12,879,877 1.5
1992 195,000 210,317 405,317 9,040,470 4.4
1993 190,000 293,470 483,470 8,893,367 5.4
1994 345,000 229,346 574,346 11,541,044 4.9
1995 340,000 231,467 571,467 10,129,132 5.6
1996 315,000 213,706 528,706 8,817,705 6
1997 345,000 195,453 540,453 19,377,504 2.8 —
1998 345,000 176,616 521,616 11,922,576 4.4
(1)Includes all governmental fund type expenditures except debt service.
136
Table XI
CITY OF HOPKINS, MINNESOTA
REVENUE BOND COVERAGE
WATER, SEWER AND STORM SEWER REVENUE BONDS
Years 1989 Through 1998
(Unaudited)
Net
Fiscal Gross Operating Revenue Debt Service Coverage
Year Revenue Expenses(1)(1) Available Principal Interest Total Ratio
1989 $ 1,921,126 $ 1,710,973 $ 210,436 $ 45,000 $ 5,850 $ 50,850 4.14 to 1
1990 2,039,769 2,186,191 (146,422) 45,000 127,354 172,354 -
- 1991 (2) 340,952 (136,260) 477,212 70,000 178,415 248,415 1.92 to 1
1992 433,475 122,200 311,275 75,000 174,191 249,191 1.79 to 1
1993 560,295 87,893 472,402 80,000 169,638 249,638 1.89 to 1
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
(1)Excludes depreciation and debt expense.
(2)Beginning in 1991 only Storm Sewer issue outstanding.
137
Table XII
CITY OF HOPKINS, MINNESOTA
DEMOGRAPHIC STATISTICS
Year 1989 Through 1998 _
(Unaudited)
(2) (3)
Fiscal (1) School Unemployment _
Year Population Enrollment Rate*
1989 16,111 6,793 3.0
1990 16,534 7,060 4.6
1991 16,534 7,373 5.8
1992 16,534 7,537 5.7
1993 16,534 7,980 3.0
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
Sources:
(1)Metropolitan Council
(2) School districts within Hopkins
(3)Minnesota Department of Labor and Industry
*Hennepin County
138
_ Table XIII
CITY OF HOPKINS, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
Years 1989 Through 1998
(Amounts expressed in thousands)
(Unaudited)
(1) (1)
Commercial Residential (2)
- Construction Construction Property Value
Fiscal Number o
Year Value Units Value Commercial Residential Nontaxable
1989 $ 17,128 150 $ 4,224 $ 180,279 $ 405,707 $ 52,187
- 1990 6,723 189 2,742 185,447 423,164 52,187
1991 3,246 208 2,275 184,878 417,311 52,187
1992 4,753 285 2,502 170,090 423,461 78,897
- 1993 5,401 238 3,578 159,533 420,190 78,897
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
Sources:
- (1)City Community Development Department
(2)City Assessor's Office
139
Table XIV
CITY OF HOPKINS,MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 1998
(Unaudited)
Amount of
Percentage Estimated
Tax of Total Tax Tax City
Taxpayer Tyne of Business Capacity Capaci Receives
1. Super Valu Grocery Warehouses 940,835 6.47% $ 239,442 —
2. Duke Realty Office/Warehouses 501,154 3.45% 127,544
3. St. Therese Apartments 293,925 2.02% 97,818
4. Alliant Techsystems Office/Warehouse 261,676 1.80% 66,597 —
5. Ramsgate Apartments Apartments 243,640 1.68% 81,083
6. Westside Village Apartments 204,782 1.41% 68,151
7. Greenfield(Phase I) Apartments 193,563 1.33% 64,418
8. Gateway Foods Office/Warehouse 183,918 1.26% 46,807
9. Christian Salvesen Warehouse 173,145 1.19% 44,065
10. Edco Products,Inc. Office/Warehouse 173,104 1.19% 44,055
11. Greenfield(Phase II) Apartments 172,293 1.18% 57,339
12. Auburn North Townhouses 161,461 1.11% 53,734
13. Thermotech Office/Warehouse 156,849 1.08% 39,918 —
14. Buffalo Associates Bank/Office 141,330 .97% 35,968
15. Rosewood West Apartments 132,248 .91% 44,012
16. Oak Ridge Country Club Golf Course 124,145 .85% 31,600
17. Creekwood Estates Apartments 114,868 .79% 38,288
18. Knollwood Towers West Apartments 105,068 .72% 34,967
19. Reuter, Inc. Office/Warehouse 87,000 .60% 22,142 —
20. Robert J. Lawrence Retail 79,310 .55% 20,184
(Knox Lumber)
Total 4,444,314 30.56% T 1,258,132 —
Total City 1998/1999 tax capacity= 14,543,901 100.00% —
Notes:
1)Tax capacity is a percentage of total market value. For taxes payable in 1999 these class rates are
2.5% for apartments and 2.45%of first$150,000 with balance at 3.45%for commercial/industrial properties —
2)The City of Hopkins receives approximately 22.9%of the total estimated tax for 1999, not including
fiscal disparities and tax increment adjustments.
3)The estimated tax is based on the tax rates for payable 1999. —
140
_ Table XV
CITY OF HOPKINS, MINNESOTA
MISCELLANEOUS STATISTICAL FACTS
December 31, 1998
(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:
1989 340
1990 312
1991 329
1992 378
1993 304
1994 457
1995 390
1996 441
1997 886
1998 463
Estimated Cost:
1989 $21,352,633
1990 9,465,334
1991 5,520,526
1992 7,254,950
1993 8,979,218
1994 11,286,814
1995 14,648,615
1996 18,391,797
1997 20,834,150
1998 11,692,315
141
Table XV
CITY OF HOPKINS, MINNESOTA
MISCELLANEOUS STATISTICAL FACTS -CONTINUED
December 31, 1998
(Unaudited)
Fire Protection:
Number of Stations I
Number of Employees- Volunteer 38 —
Police Protection:
Number of Stations I —
Number of Employees 41
Parks: _
City Parks 12
Playgrounds I
Skating Rinks 18
Employees:
Regular 108
Part Time 5
Elections:
Registered Voters- last general election 8,789 —
Number of votes cast last general election 6,500
Percentage of registered voters voting 73%
Population: —
1920 3,055
1930 3,834
1940 4,100 —
1950 7,595
1960 11,380
1970(census) 13,395 —
1980(census) 15,336
1990(census) 16,534
1991 16,534 —
1992 16,534
1993 16,534
1994 16,534 _
1995 16,534
1996 16,534
1997 16,665
1998 16,559 _
142 —1