2001 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 , 2001
DEPARTMENT OF FINANCE
Lori Yager, Finance Director
MEMBER OF GOVERNMENT FINANCE OFFICERS' ASSOCIATION
OF THE UNITED STATES AND CANADA
TELEPHONE: (952) 935-8474
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2001
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 18
H. FINANCIAL SECTION
Independent Auditors'Report 20
A. General Purpose Financial Statements
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 30
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2001 -
Exhibit Page
B.Combining Individual Funds and Account
Groups Statements and Schedules
General Fund
Balance Sheet B 49 —
Statement of Revenues,Expenditures, and Changes
in Fund Balance -Budget and Actual B-1 50
Schedule of Revenues -Budget and Actual B-2 51 —
Schedule of Expenditures -Budget and Actual B-3 52
Special Revenue Funds —
Combining Balance Sheet C 58
Combining Balance Sheet -Tax Increment Ca 60 —
Combining Statement of Revenues,Expenditures, and
Changes in Fund Balances C-1 62
Combining Statement of Revenues,Expenditures, and _
Changes in Fund Balances -Tax Increment Ca-1 64
Statements of Revenues,Expenditures, and Changes
in Fund Balance -Budget and Actual: _
State Chemical Assessment Team Fund C-2 66
Economic Development Fund C-3 67
Real Estate Purchases and Sales Fund C-4 68 _
Para-Transit Fund C-5 69
Housing Rehab Fund C-6 70
Parking Fund C-7 71
Section 8 Housing Fund C-8 72 —
Cable TV Fund C-9 73
Depot Coffee House Fund C-10 74
Tax Increment 1.1 Fund C-11 75 —
Tax Increment 1.2 Fund C-12 76
Tax Increment 2.1 Fund C-13 77
Tax Increment 2.6 Fund C-14 78
Tax Increment 2.7 Fund C-15 79
Tax Increment 2.8 Fund C-16 80
Tax Increment 2.9 Fund C-17 81 —
Tax Increment 2.10 Fund C-18 82
Tax Increment 2.11 Fund C-19 83
Debt Service Funds
Combining Balance Sheet D 86 —
Combining Statement of Revenues,Expenditures,
and Changes in Fund Balance D-1 88
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2001
Exhibit Page
_ Capital Projects Funds
Combining Balance Sheet E 91
Combining Statement of Revenues,Expenditures, and
Changes in Fund Balance E-1 92
Enterprise Funds
Combining Balance Sheet F 94
_ Combining Statement of Revenues,Expenses, and
Changes in Retained Earnings F-1 96
Combining Statement of Cash Flows F-2 98
Internal Service Fund
Balance Sheet G 101
Statement of Revenues,Expenses, and
Changes in Retained Earnings G-1 102
Statement of Cash Flows G-2 103
Agency Fund
Statement of Changes in Assets and Liabilities H 105
Account Groups
Schedule of General Fixed Assets I 107
Schedule of General Fixed Assets by Function
and Activity I-1 108
Schedule of Changes in General Fixed Assets
by Function and Activity I-2 109
Statement of General Long-Term Debt J 110
Table Page
III. STATISTICAL SECTION
Governmental Fund Types -Expenditures by Function I 113
Governmental Fund Types - Revenues by Source II 114
Property Tax Levies and Collections 111 115
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2001 -
Table Page
Assessed Value/Tax Capacity Value and Market Value
of All Taxable Property IV 116
Property Tax Rates -Direct and Overlapping Governments V 117
Special Assessments Billings and Collections VI 118 —
Ratio of Net Bonded Debt to Assessed Value/Tax
Capacity Value and Net Bonded Debt Per Capita VII 120 —
Computation of Legal Debt Margin VIII 122
Computation of Direct and Overlapping Debt
Including Debt Ratios IX 123
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures X 124
Revenue Bond Coverage- Water, Sewer and Storm Sewer
Revenue Bonds XI 125
Demographic Statistics XII 126
Construction and Property Value XIII 127
Principal Taxpayers XIV 128
Miscellaneous Statistical Facts XV 129 —
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION I
INTRODUCTORY SECTION
1
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2001 —
CITY OFFICIALS
December 31, 2001
CITY COUNCIL
Term
Expires
Eugene Maxwell, Mayor 12-31-05
Rick Brausen Councilmember 12-31-05 —
Karen Jensen Councilmember 12-31-03
Diane Johnson Councilmember 12-31-03
Bruce Rowan Councilmember 12-31-05
CITY MANAGER
Steven C. Mielke —
FINANCE DIRECTOR
Lori Yager _
2
I I I I I I I I I I I I I I I I I I I
CITIZENS
Boards & CITY City Attorney
Commissions COUNCIL
Administrative City Manager MIS
Services City of
Minnetonka
Community Planning & Fire Police Public Works Recreation
Services
Finance Economic
W Development
• Economic Building Maint. &
• Assessing Fire & Medical Patrol
Development Equipment
• City Clerk Accounting Response Investigation
• Elections Payroll Housing Services
• Prevention Communication
• Planning & Engineering
• Inspections Utility Billing Emergency Crime
Zoning Preparedness Prevention Parks & Forestry
• Reception Public Housing Street/Traffic/
Refuse
• Water&Sewer
• Facilities Mgmt.
Activity Center
Center for the Arts
Depot
Pavilion/Ice Arena
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4 -
City of qfopkins
1010 First Street South • Hopkins, MN 55343-7573 • Phone:952-935-8474 • FaX. 952-935-1834
Web address:www.hopkinsmn.com
June 7, 2002
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, 2001 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, the general-purpose financial statements and the combining and individual
funds and account group financial statements. 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
Partnering with the Community to Enhance the Q tality of Life
•Inspire•Educate•Involve•Communicate•
Governmental Structure
Background
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 54% single family residential and apartments, and 46% commercial-
industrial. The city's population has stabilized due to the fact that the City is largely developed and
the national trend toward the lowering of persons per household.
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 2001 was $17.1
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 2001 include the following: —
ActActivity Valuation
Commercial Additions/Alterations: —
Plantation Apartments $ 3,508,000
SuperValu addition $ 1,750,000
Walser addition $ 1,250,000
Excelsior Boulevard Reconstruction $ 670,000
Parkside Residential Project $ 400,000 —
Nine Mile Cove $ 2,479,000
Water Tower Painting $ 285,000 _
Mason Property Downtown $ 300,000
Efforts are being made for continued development and growth for 2002 and beyond. It is —
anticipated that approximately $49,000,000 of construction will also take place in the City of
Hopkins during 2002/2003.
6 —
Some anticipated projects during this period include the following:
Project Valuation
Nine We Cove $ 8,000,000
Eastside Redevelopment $14,000,000
Excelsior Boulevard Reconstruction $ 6,000,000
Hopkins House/Walgreens $ 2,245,000
Alliant Tech redevelopment $19,200,000
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 and redevelopment efforts
throughout the City. Several projects are anticipated.
— In 2002, projects to be constructed include the redevelopment of the Hopkins House Hotel, the
redevelopment of Eastside downtown, phase lI of the Nine We Cove housing project,
redevelopment of the Alliant Tech property and parking lots. 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.
Over the course of about four years, major improvements will continue to be made to County Road
3 along its entire length in Hopkins. The first phase of improvements occurred in 1998 between
Shady Oak Road and 11th Avenue South. The second phase occurred in 1999 and 2000, between
Highway 169 to 11`h Avenue South. The third phase will occur in the year 2002 and 2003 between
Highway 169 and Blake Road. The final phase runs from Blake Road to Meadowbroke Road and
should occur in 2003 and 2004.
Major Initiatives
For the Year
For 2001, 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.
A Citizens Academy was held again in 2001, which involved 45 weeks of citizen, council member
and employee participation. The academy informed citizens of different aspects of city services.
The activity was again a huge success and will be continued either annually or bi-annually.
In 2000, the council and city manager organized a large group of concerned partners to determine
what the Vision and the Mission of the City of Hopkins should be. Participation in this project was
very high and the resulting Vision and Mission are as follows:
7
Community Vision
Creating a Spirit of Unity—Hopkins will be a community where _
• People are treated with respect
• People participate in building culture, character and common bonds
• Business growth throughout the City is supported while maintaining a vibrant City center —
• People feel safe, support outstanding schools and celebrate cultural heritages
• People enjoy quality public services, parks and housing
City of Hopkins Mission
Partnering with the Community to enhance the quality of life,
— Inspire, Educate, Involve, Communicate —
In addition to the citizen projects we also accomplished our annual street repair and improvements _
in 2001, at a cost of approximately $2,559,000. The projects included replacing infrastructure,
roadway surface, curb and gutters, parking lot surfaces and alley reconstruction. The city completed
painting the Blake water tower for approximately $285,000 and continues to convert its' meter _
reading system to radio read. Storm Sewer reconstruction projects totaling $80,000, were
completed in 2001.
Major redevelopment of a section of the east end of downtown between 7th and 8th Avenues, began
in 2001 with the purchase of some Mainstreet property. Selection of a developer and initial plans
were drawn up. —
The City of Hopkins continued to upgrade its' police computer systems. 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.
For the Future —
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan will be developed and implemented in —
2002, which will guide future improvements and connections to regional trails.
Hennepin County has included in its five year CIP an improvement project relating to County Road
3 extending through the entire City of Hopkins. Improvements include street surface, widening,
lighting, landscaping, sidewalks, and trails. These improvements will continue to take place during
2002-2004.
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 will continue to redevelop a section of the east end of downtown. The city will continue to
replace its' old water meters with new radio read water meters. —
8
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.
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 Special Revenue,
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 over budget by $70,407. This was a result of collection of delinquent taxes,new grants and an
increase in charges for services.
9
The following chart presents a comparative analysis of general fund revenues and other financing
sources:
General Fund Revenue and Other Financing Sources, 2000, 1999 and 1998
Actual —
Other
Interest
Charges 111998
_
Fines 01999
■2000
Intergov't 82001
License & Permits
Taxes
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500
(in thousands)
Total net tax capacity of the City for taxes collected in 2001 (including the fiscal disparities tax
capacity contribution and distribution) was $13,451,356. This 2001 tax base reflects an increase of _
$925,001 over 2000 due to double digit increases in property values. Classification rates were not
changed by state legislature. The total tax capacity value figure is also net of the tax capacity
pledged to tax increment projects, which amounted to $2,232,139, which is 16% of the gross tax _
capacity base. Current property tax collections were 99.4% of the tax levy in the year 2001.
Property taxes make up 60% of the general fund revenue sources. The next largest source is
intergovernmental revenues at 27%. The intergovernmental revenues have remained fairly constant _
over the last four years, which has prompted a need for increases in property taxes.
General Fund expenditures and transfers totaled $7,683,413 in 2001, an overall increase of —
approximately 6.9% from the comparable figure for 2000. This increase over 2000 is primarily
from an increase in salaries and benefits. Salaries and benefits represent 76% of general fund
expenditures. Total expenditures were below budgeted amounts by $102,271. The general —
government budget within the general fund was increased by $45,600 for a Fire station roof
replacement and reallocation of salary from community development. The roof was not replaced
therefore expenditures were under budget considerably. The public safety budget was increased by -'
$135,000 to cover additional materials, supplies and services in the police area. A portion of the
community development budget was decreased by $95,000 and reallocated to the general
government budget. The recreation budget was decreased by $33,000 due to the smaller payment
for Shady Oak Beach improvements. The public works budget increased only slightly.
10 —
The following chart presents a comparative analysis of general fund expenditures and other uses:
General Fund Expenditures and Other Financing Uses
2001, 2000, 1999 and 1998
$3,500-
$3,000-
$2,500-
$2,000-
3,500$3,000$2,500$2,000 02001
$1,500 ■2000
❑1999
$1,000
C31998
$500
"r,
$0
Fn-
General Public Comm. Public Recreation Capital
Gov. Safety Dev. Works
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 Beginning of Year % of
Budget Amount Budget
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
2000 7,418,723 2,877,512 38.8
2001 7,740,084 3,126,627 40.0
The City's financial position remained strong during 2001. Cash and investment balances at year-
end totaled$22,614,226, which provides the liquidity necessary to avoid short-term borrowing.
The unreserved General Fund balance is available to provide funding for working capital until tax
settlements and state aids are received in June and December of each year, to provide funds for
unknown events and emergencies, which could have an adverse effect on the fund. A strong fund
balance should be at least 50% of the "gross" General Fund property tax levy (before netting of
HACA and fiscal disparities distribution) for the following year. Through sound financial
management,, the City has achieved this goal in 2001 as well as previous years.
11
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 $7,402,366, _
which is 147% of the expenditures and other financing uses incurred in 2001. The excess of Special
revenue funds are ear marked to be used on redevelopment projects for the city and early retirement
of debt service in TIF districts. The capital project funds currently have $3,484,848 in fund balance, _
which is to be spent in 2002 - 2004 primarily on the County Road 3 project. The Enterprise Funds
have a working capital balance in excess of$2,699,683, which will provide funds for the upcoming
water, sewer and street projects. The Internal Service Funds have a working capital balance in _
excess of $1,700,000, which will provide funds for future capital purchases and deductible
insurance claims.
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 undesignated fund balance is currently$416,113.
Real Estate Purchases & Sales
The proceeds of this fund are to be used to improve city buildings. The fund balance is currently _
$54,992.
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
$75,293. _
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 $1,899,985 and is earmarked for debt service payments or for specific projects within each
district.
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. _
12
HousingRehab
ehab
This fund receives money primarily from the Community Development Block Grant program,
housing fees and loan interest. This fund accounts for housing rehabilitation activities in the City of
Hopkins. The fund balance is currently$1,170,664.
Parkin
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$352,853.
Section 8 Housing
This fund administers the HUD Section 8 rental assistance program. Current fund balance is
$33,712.
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$327,984.
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, which is
part of the Depot Coffee House,is funded by grants and contribution from local supporters.
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, 2001, totaled $25,062,696 of which $3,715,000 is being refunded with
lower interest bonds on 2/1/02. $6,717,696 are redevelopment issues - the last bond matures August
1, 2016; $1,460,000 are park and recreational bonds - due August 1, 2011; $5,135,000 are revenue
bonds - due August 1, 2015; $1,735,000 are special assessment bonds - due February 1, 2010 and
_ $6,300,000 are housing improvement bonds — due February 1, 2021. 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 Al rating from Moody's Investors Service on all issues for several
years. In 2000 the city received an upgrade in its rating from Standard and Poors from A+to a AA,
The upgrade in rating is attributed to continued development of commercial and residential
properties, strong growth in market values, above average and increasing wealth levels, balanced
operations and solid fund balances and moderate debt levels. At December 31, 2001, only
$2,760,000 of general obligation debt was applicable to the legal debt limit of$19,424,044.
Capital Proiect Funds
The proceeds of general obligation bond issues, federal, state and local grants, special assessments
for capital projects and park dedication fees are accounted for in Capital Project Funds until the
particular projects are completed.
13
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.
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
$1,195,774. This fund issued bonds in the amount of $2,060,000 in 2000 to pay for repainting of
two water towers, repair of a lift station and implementation of radio read. The fund experienced a
net loss this year of $(159,886). The water utility rate is projected to increase in 2004 to help pay
for debt and future projects.
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. Working capital balance has remained very strong in this fund
over the last seven years prompting a rate decrease in 1999. The current working capital balance for
this fund is $1,329,038. Net income is $96,698.
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. The _
refuse rates have remained stable since 1991. The recycling rates increased in 2002 to support the
cost of recycling. A brush and yardwaste charge could be implemented in 2003 to offset the costs of
providing this service to our citizens. This fund realized a net loss this year of $(45,668). The _
working capital balance for this fund is $577,028, a decrease of$15,000 over 2000.
Storm Sewer Utility Fund--This fund was created in 1989 to consolidate infrastructure replacement _
activities. A storm sewer fee was added to all properties, based on acreage contribution of runoff.
The initial fee was inadequate and has been increased in 1991, 1992, 1993, 1998 and 1999. The city
issued bonds in 1999 to pay for storm sewer projects in 1999 and 2000. The fund had also been —
dealing with a negative working capital balance. To resolve this, a substantial rate change was
implemented in 1999. The Storm Sewer fund incurs many capital project costs and therefore was
cash poor. The increased rates and the revenue bond issue had brought the working capital balance
to a positive amount. In 2001, however,the working capital balance is again negative at$(231,930).
To resolve this issue temporarily, the sanitary sewer fund will borrow the storm sewer fund enough
to cover its' shortfall. A rate increase is planned for 2003 which will enable the fund to meet its'
infrastructure costs and pay back its' debt. The net income in the Storm Sewer fund is $241,532.
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.
The fund realizes net losses due to depreciation of the building and equipment. This year the net _
loss is $(49,755). The working capital balance for this fund is currently$74,151.
Art Center — This fund was established in 1997 to record operating revenues and expenditures for
the art center facility. It has been in operation for four years. The working capital balance for the
fund is a negative ($243,359). The negative working capital is a combination of operating losses
14
and the continued payback of a loan from the general fund. The Art Center operation has
demonstrated an inability to meet its operating expenses. Socially, the Art Center is a success in
many aspects and the city is very happy to have constructed such a structure in its' downtown area.
The city has determined to change the Art Center fund from an enterprise fund to a special revenue
fund and support it with economic development funds and cable franchise fees. The transition will
occur in 2002.
Skate Park — This fund was established in 2000 to record operating revenues and expenditures for
the newly constructed skate park. This is the second year of operations and it appears to need some
adjusting to continue successfully. A net loss of $(14,209) occurred in 2001. Working capital
balance is $11,008, half of what it was in 2000. Changes are occurring for2002 to increase revenues
and decrease costs.
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.
Cash Management
Cash temporarily available for short-term investment during the year was invested as authorized by
Minnesota Statutes Chapter 475 and the City's Investment Policy.
The City of Hopkins subscribes to the "pooled cash" concept of investing which means that all
funds with cash balances participate in an investment pool. This permits some funds to be
overdrawn and others to show cash balances when, in fact, the City has a cash balance. This pooled
cash concept provides for investing greater amounts of money at more favorable rates. Interest
earnings are then allocated on a monthly basis to the participating funds.
The City's primary investment policy goal is to minimize investment market risks while realizing a
competitive yield on its portfolio. The classification of the category of credit risk is shown in Note
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 70%. During 2001, the City of
Hopkins earned $901,168 as compared to 2000 earnings of $1,100,505. The reduced earnings are
attributed to the sluggish economy in 2001.
f
At year-end, the City's cash and investment resources (including restricted cash) were held as
follows:
_ Cost
Cash 2.6% $ 585,290
Commercial Paper 59.9% 13,552,301
U.S. Government Agency Securities 37.5% 8,476,634
Total Investments and Deposits $ 22,614,226
15
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,
2001, the general fixed assets of the City amounted to $27,922,275 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 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, 2000.
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. _
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.
16
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,
' G
Steven C. Mielke Lori K. Yager
City Manager Finance Director
17
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, 2000 —
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.
THE
/U STATES\\}}p
w f AND N
CANADA o Pr sident
d CDRPDAATWN�,a
�� CkICA69 @ e
Executiz4fwle
ve Director
18
61
NOII:AS IVDNVN IA
II NOIIDIS _
lWd32I IVIDNVNl3 IVANN`d 3nISN3H321(IW0D
V-LOSINNIW 'SNI)IdOH AO Alli
4200 Wells Fargo Center —
90 South Seventh Street
Minneapolis,MN 55402
The 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, 2001, as listed in the accompanying table of
contents. These general-purpose financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial statements based on our
audit. —
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable —
assurance about whether the 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 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 as of December 31, 2001, and the results of its —
operations and cash flows of its propriety fund types for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.
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 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.
June 7, 2002 —
20 —
�f IGIIPKPf 1C LP, U i
.ihor of KPMG Intel nat S P
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
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 31,2001 -
With Comparative Totals for December 31,2000
Governmental Fund Types -
Special Debt Capital
ASSETS AND OTHER DEBITS
General Revenue Service Projects
-
Assets:
Cash,cash equivalents,and investments $ 3,110,992 $ 4,808,949 $ 4,660,378 $ 2,833,348
Taxes receivable 193,961 64,911 13,322
Special assessments receivable - - 10,998,862 2,143,685
Accounts receivable 23,632 121,995 - 93,447
Rehabilitation loans receivable - 652,648 -
Accrued interest receivable 40,018 52,697 50,634 29,791
Due from other funds 132,883 2,468,314 1,465 383,443
Due from other governments 41,733 33,168 - 265,903
Inventory 78,241
Prepaid items 4,364
Restricted cash and investments - 49,000 - -
Advance to other funds 534,783 300,000 - -
Long term loans receivable - 2,070,827
Property and equipment,net -
Other debits:
Amount available in debt service funds - -
Amount to be provided for retirement of general
long-term debt _
Total Assets and Other Debits 4,160,607- 10,622,50T 37-17,774,661 5,749,617-
LIABILITIES,
,749, 17LIABILITIES,EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable $ 253,502 $ 413,850 $ - $ 125,506 -
Accrued interest payable _
Compensated absences payable 541,230 46,710 - -
Due to other funds - 2,539,667 1,465 8,843 _
Due to other governments - 250 - -
Deferred revenue 159,281 219,666 10,995,883 2,130,420
Deposits payable 7,889 _ _ _
Advance from other funds _ - _
Long-term debt _ _ _ -
Total Liabilities 961,902 3,220,143 10,997,348 2,264,769
Equity and Other Credits: -
Contributed capital _ _ _ _
Investment in general fixed assets - - _ _
Retained earnings: -
Reserved _ _ _ _
Unreserved - _ _ _
Fund balances: _
Reserved 617,388 4,816,824 4,727,313 -
Unreserved
Designated 2,561,426 636,754 - 3,257,006
Undesignated 19,891 1,948,788 - 227,842 -
Total Equity and Other Credits 3,198,705 7,402,366 4,727,313 3,484,848
Total Liabilities,Equity and Other Credits 4,160,607 10,622,5093-717,724,661 $ 5,749,617
See accompanying Notes to Financial Statements. -
22
A
Proprietary Fudiciary
Fund Types Fund Type Account Groups
General General Totals
Internal Trust and Fixed Long-Term (Memorandum Only)
Enterprise Service Agency Assets Debt 2001 2000
$ 3,316,490 $ 1,741,116 $ 179,993 $ - $ - $ 20,651,266 $ 19,777,939
272,194 140,216
13,142,547 13,642,074
417,414 123 - - - 656,611 552,261
652,648 667,644
56,643 13,140 1,934 - - 244,857 279,259
2,986,105 3,135,826
11,162 - 28,753 - - 380,719 398,633
24,363 - - - - 102,604 104,385
7,088 _ _ _ - 11,452 6,295
1,913,960 - - - - 1,962,960 614,000
834,783 872,868
2,070,827 2,110,630
20,703,749 1,692,233 - 27,922,275 - 50,318,257 47,766,249
4,727,313 4,727,313 1,819,160
13,595,383 13,595,383 15,374,3 83
26,450,869 , 1 1 �$ 8, 2,696 $ 112,610 $ 107,261,822
$ 170,029 $ - $ 8,670 $ - $ - $ 971,557 $ 1,150,092
_ 113,031 - - - - 113,031 44,808
143,780 - - - - 731,720 701,431
436,130 - - - - 2,986,105 3,135,826
37,704 - 202,010 - - 239,964 199,507
206,763 - - - - 13,712,013 14,458,603
7,889 7,890
834,783 - - - - 834,783 872,868
_ 6,740,000 - - - 18,322,696 25,062,696 22,668,543
8,682,220 - 210,680 - 18,322,696 44,659,758 43,239,568
6,378,327 2,687,227 - - - 9,065,554 9,065,554
- - - 27,922,275 - 27,922,275 25,603,584
1,913,960 - - - - 1,913,960 250,000
9,476,362 759,385 - - - 10,235,747 11,783,428
- - 10,161,525 5,975,984
- - 6,455,186 6,348,619
- - 2,196,521 4,995,085
17,768,649 3,446,612 - 27,922,275 - 67,950,768 64,022,254
26,450,869 7-7-446712 12 1 , 0 27,922,275 18,322,696 112,610,=6 107,261,822
23
CITY OF HOPKINS,MINNESOTA -
COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND
BALANCES-ALL GOVERNMENTAL FUND TYPES
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects -
Revenues:
Property taxes $ 4,740,931 $ 2,730,232 $ 346,382 $ -
Special assessments - 16,000 670,660 566,932
Intergovernmental 2,175,051 290,359 - 631,443
Licenses and permits 377,048
Franchise fee - 138,614 -
Fines and forfeitures 113,353 53,899 - - -
Charges for services 193,337 214,450 - 63,728
Investment earnings 160,343 228,065 73,248 166,253
Other 95,428 104,501
Total Revenues 7,855,491 3,776,120 1,090,290 1,428,356
Expenditures: _
Current:
General government 827,483 215,911 -
Public safety 3,359,401 39,580 - -
Community development 759,178 382,231 - - -
Public works 1,573,614 119,747 - -
Recreation 480,186 187,224 - -
Other 34,290
Capital outlay 617,882 2,177,614 - 1,872,009
Debt service:
Principal payments - - 995,847
Interest,fiscal charges and issuance cost - - 1,116,134 -
Total Operating Expenditures 7,652,034 3,122,307 2,111,981 1,872,009
Excess(deficiency)of revenues over(under)
expenditures 203,457 653,813 (1,021,691) (443,653)
Other Financing Sources(Uses): _
Proceeds from bond issuance - - 2,125,000 -
Bond issuance expense - - (25,156) -
Operating transfers in - 199,379 1,830,000 62,774 _
Operating transfers out (31,379) (1,902,000) - (157,000)
Total Other Financing Sources(Uses) (31,379) (1,702,621) 3,929,844 (94,226)
Excess(deficiency)of revenues and other financing -
sources over(under)expenditures and other
financing uses 172,078 (1,048,808) 2,908,153 (537,879)
Fund Balances-January 1 3,126,627 8,451,174 1,819,160 3,922,727
Residual equity transfer in(out) (100,000) - - 100,000
Fund Balances-December 31 $ 3,198,705 $ 7,402,366 $ 4,727,313 $ 3,384,848
See accompanying Notes to Financial Statements. -
24
A-1
Totals
(Memorandum Only)
2001 2000
$ 7,817,545 $ 6,888,584
1,253,592 1,109,585
3,096,853 3,719,263
377,048 428,435
138,614 126,587
167,252 148,257
471,515 676,290
627,909 744,653
199,929 110,879
14,150,257 13,952,533
1,043,394 1,033,201
3,398,981 3,196,224
1,141,409 1,079,606
1,693,361 1,591,676
667,410 658,967
34,290 1,318
4,667,505 2,664,797
995,847 720,000
1,116,134 995,622
14,758,331 11,941,411
(608,074) 2,011,122
2,125,000 -
(25,156) -
2,092,153 936,942
(2,090,379) (965,250)
2,101,618 (28,308)
1,493,544 1,982,814
17,319,688 15,336,874
$ 18,813,232 $ 17,319,688
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 31,2001
General Fund
Variance-- -
favorable
Budget Actual (unfavorable)
Revenues: -
Property taxes $ 4,692,361 $ 4,740,931 $ 48,570
Special Assessments
Licenses and permits 363,730 377,048 13,318 -
Intergovernmental 2,148,833 2,175,051 26,218
Franchise fee
Fines and forfeitures 110,000 113,353 3,353
Charges for services 157,460 193,337 35,877
Investment earnings 250,000 160,343 (89,657)
Other 62,700 95,428 32,728 -
Total Revenues 7,785,084 7,855,491 70,407
Expenditures: _
General government 824,201 827,483 (3,282)
Public safety 3,383,016 3,359,401 23,615
Community development 777,037 759,178 17,859 -
Public works 1,601,279 1,573,614 27,665
Recreation 488,046 480,186 7,860
Other 36,878 34,290 2,588 -
Capital outlay 638,868 617,882 20,986
Total Expenditures 7,749,325 7,652,034 97,291
Excess(deficiency)of revenues over(under)expenditures 35,759 203,457 167,698
Other Financing Sources(Uses): -
Operating transfers in - -
Operating transfers out (36,359) (31,379) 4,980
Total Other Financing Sources (Uses) (36,359) (31,379) 4,980 _
Excess (deficiency)of revenues and other financing sources
over(under)expenditures and other financing uses (600) 172,078 172,678
Fund Balances -January 1 3,126,627 3,126,627 -
Residual equity transfer out (100,000) (100,000) -
Fund Balances -December 31 $ 3,026,027 $ 3,198,705 $ 172,678 _
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)
$ 2,211,000 $ 2,730,232 $ 519,232 $ 6,903,361 $ 7,471,163 $ 567,802
16,000 16,000 - 16,000 16,000
363,730 377,048 13,318
208,133 215,066 6,933 2,356,966 2,390,117 33,151
120,000 138,614 18,614 120,000 138,614 18,614
27,000 53,899 26,899 137,000 167,252 30,252
_ 222,030 214,450 (7,580) 379,490 407,787 28,297
199,500 228,065 28,565 449,500 388,408 (61,092)
85,924 81,001 (4,923) 148,624 176,429 27,805
3,073,587 3,677,327 603,740 10,858,671 11,532,818 674,147
231,145 215,911 15,234 1,055,346 1,043,394 11,952
55,000 39,580 15,420 3,438,016 3,398,981 39,035
423,750 349,996 73,754 1,200,787 1,109,174 91,613
127,558 119,747 7,811 1,728,837 1,693,361 35,476
203,901 187,224 16,677 691,947 667,410 24,537
- - 36,878 34,290 2,588
3,022,346 2,177,614 844,732 3,661,214 2,795,496 865,718
4,063,700 3,090,072 973,628 11,813,025 10,742,106 1,070,919
(990,113) 587,255 1,577,368 (954,354) 790,712 1,745,066
10,476 31,379 20,903 10,476 31,379 20,903
- (1,902,000) (1,902,000) - (1,938,359) (1,933,379) 4,980
(1,891,524) (1,870,621) 20,903 (1,927,883) (1,902,000) 25,883
(2,881,637) (1,283,366) 1,598,271 (2,882,237) (1,111,288) 1,770,949
8,600,197 8,600,197 - 11,726,824 11,726,824
$ 5,718,560 $ 7,316,831 $ 1,598,271 $ 8,844,587 $ 10,615,536 $ 1,770,949
27
CITY OF HOPKINS,MINNESOTA A-3
COMBINED STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN -
RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
Year Ended December 31,2001 _
With Comparative Totals for Year Ended December 31,2000
Totals _
Internal (Memorandum Only)
Enterprise Service 2001 2000
Operating revenues:
Charges for services $ 4,294,216 $ 536,333 $ 4,830,549 $ 4,895,981 -
Other 68,037 - 68,037 43,655
Total Operating Revenues 4,362,253 536,333 4,898,586 4,939,636
Operating expenses(excluding depreciation):
Salaries and employee benefits 1,241,199 - 1,241,199 1,140,275
Materials,supplies and services 1,456,897 13,285 1,470,182 1,659,877 -
Disposal costs 923,092 - 923,092 835,835
Total Operating Expenses 3,621,188 13,285 3,634,473 3,635,987
Operating income before depreciation expense 741,065 523,048 1,264,113 1,303,649
Depreciation expense 768,236 405,546 1,173,782 1,061,730
Operating(loss)income (27,171) 117,502 90,331 241,919
Nonoperating revenue(expense): -
Investment earnings 206,161 67,098 273,259 355,852
Interest/fiscal agent expense (380,560) - (380,560) (186,841)
Intergovernmental grants 61,219 - 61,219 172,672
Bond issuance expense (12,248) - (12,248) (41,375)
Other 53,237 32,815 86,052 86,668
Total nonoperating revenues(expenses) (72,191) 99,913 27,722 386,976 -
Income before other financing sources(uses) (99,362) 217,415 118,053 628,895
Other revenues(expenses):
Operating transfers from another fund 61,000 - 61,000 28,308
Operating transfers to another fund (62,774) - (62,774) -
Total other revenues(expenses) (1,774) - (1,774) 28,308
Net(loss)income (101,136) 217,415 116,279 657,203
Fund equity:
Retained earnings-January 1 11,491,458 541,970 12,033,428 11,376,225
Retained earnings-December 31 $ 11,390,322 $ 759,385 $ 12,149,707 $ 12,033,428
See accompanying Notes to Financial Statements.
28
CITY OF HOPKINS,MINNESOTA A-4
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31, 2000
Totals
Internal (Memorandum Only)
Enterprise Service 2001 2000
Cash Flows from Operating Activities:
Operating(loss)income $ (27,171) $ 117,502 $ 90,331 $ 241,919
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 768,236 405,546 1,173,782 1,061,730
_ Increase decrease in:
Accounts and accrued interest receivable (28,683) 1,209 (27,474) 136,925
Due from other governments (5,664) - (5,664) 9,887
Inventory 330 - 330 70
Prepaid expense (793) - (793) (96)
Due from Metropolitan Waste Control Commission - - - 26,421
Accounts,compensated absences and accrued
_ interest payable (105,308) (99) (105,407) 220,694
Due to other funds 4,647 - 4,647 194,201
Due to other governments 13,447 - 13,447 (460)
Deferred revenue 55,289 - 55,289 24,073
Cash Provided by Operating Activities 674,330 524,158 1,198,488 1,915,364
_ Cash Flows from Noncapital Financing Activities:
Intergovernmental grants 61,219 - 61,219 172,672
Other contributions 53,237 - 53,237 4,326
Operating transfer in 61,000 - 61,000 28,308
Operating transfer out (62,774) - (62,774) -
Cash Provided By Noncapital Financing Activities 112,682 - 112,682 205,306
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (1,045,954) (361,145) (1,407,099) (3,362,829)
Gain on sale of property and equipment - 32,815 32,815 82,342
Proceeds from issuance of bonds 1,610,000 - 1,610,000 2,060,000
Interest and other payments (392,808) - (392,808) (228,216)
Bond payments (345,000) - (345,000) (205,000)
Cash(Used in)Capital and Related Financing Activities (173,762) (328,330) (502,092) (1,653,703)
Cash Provided by Investing Activities-interest received 206,161 67,098 273,259 355,852
Increase in Cash and Cash Equivalents 819,411 262,926 1,082,337 822,819
Cash and Cash Equivalents-January 1 4,411,039 1,478,190 5,889,229 5,066,410
Cash and Cash Equivalents-December 31 $ 5,230,450 $ 1,741,116 $ 6,971,566 $ 5,889,229
Cash and Cash Equivalents Components:
Cash and Cash Equivalents 3,316,490 1,741,116 5,057,606 5,639,229
Restricted Cash and Cash Equivalents 1,913,960 - 1,913,960 250,000
Total Cash and Cash Equivalents $ 1,741,116 ,
See accompanying Notes to Financial Statements
29
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
1 SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
The City of Hopkins, Minnesota (the City) is a charter city which was approved December 2, 1947. The City
operates pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council-Manager
form of government. _
The financial statements of the City have been prepared in conformity with accounting principles generally accepted
in the United States of America, as applied to governmental units by the Government Accounting Standards Board —
(GASB). The more significant accounting policies of the City are described below.
A. REPORTING ENTITY
In accordance with GASB pronouncements, the City's financial statements include all funds, 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 and infrastructure, other than those financed by
proprietary funds or special revenue funds.
30
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
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
Agency Funds — Agency funds are custodial in nature and do not present results of operations or have a
measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This
fund is used to account for assets that the government holds for others in an agency capacity
C. BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus. Governmental
_ 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 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.
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others.
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 investment
earnings. Major revenues that are not susceptible to accrual include fees and miscellaneous revenues; such
revenues are recorded only as received because they are not measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund
liability is incurred,except for principal and interest on general long-term debt 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.
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
31
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31,2001 —
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 2001. The effect of the supplemental —
amendments are as follows:
Original Budget Budget adjustments Final Budget
General Fund $7,740,084 $ 45,600 $7,785,684
Economic Development $ 123,864 $ 360,000 $ 483,846
Housing Rehab $ 102,602 $ 176,990 $ 279,592
Cable TV $ 160,870 $ 8,508 $ 169,378 —
Tax Increment 1-2 $ 49,011 $ 200,000 $ 249,011
Tax Increment 2-7 $ 56,500 $ 166,000 $ 222,500
Tax Increment 2-9 $ 46,246 $ 4,000 $ 50,246 —
Tax Increment 2-10 $ 0 $ 6,000 $ 6,000
Tax Increment 2-11 $ 5,000 $ 282,000 $ 287,000
6. The budgets for the General Fund are prepared on a modified accrual basis of accounting, which is consistent
with accounting principles generally accepted in the United States of America. 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, and Art Facility Construction. —
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.
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 in commercial paper with maturity date of less than one year at
32
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31, 2001
the date of purchase, are reported at cost or amortized cost, which approximates fair value. Investments other than
commercial paper are reported at fair value,based on quoted market price.
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which
is used essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary
funds consider all investments to be cash equivalents. Restricted cash and investments are 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, special revenue fund revenue bonds and debt service fund
refunding 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.
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
33
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 2001
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 of —
continuous City employment. Severance pay is calculated by multiplying the total number of continuous years in
the City employ and/or accumulated sick leave by the daily wage rate prevailing at date of severance, at one day
per year of such employment, to a maximum of 20 days. Such severance money shall be paid in case of —
separation caused by death, eligible retirements, medically attested disability preventing an employee from
performing the major duties of the position or separation for non-disciplinary reasons. 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.
In addition to the pension benefits described in Note 8, the City provides post-retirement health care benefits to —
employees who were hired prior to July 1, 1993 and have been with the City for at least ten years and are either
(1) age 60 years or older, or (2) eligible for full PERA retirement benefits. These employees may retire and
receive full single health and life insurance coverage until age 65. Currently 7 employees meet those eligibility —
requirements. During the year expenditures of approximately $17,000 were incurred for post-retirement health
care benefits.
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). —
N. INTERFUND TRANSACTIONS
Quasi-extemal 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.
34
City of Hopkins,Minnesota
— NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
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 accounting principles generally accepted in the United States of America.
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 alien 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.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, 2001,there were 16
note/bond issues outstanding, with an aggregate principal amount payable of approximately$51.9 million.
R. 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.
35
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001 —
S. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America, requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
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, 2001, were as follows: —
Fair Value Bank Balance
$585,290 $271,773 —
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, 2001 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
(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.
36
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31,2001
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 31,2000,were as follows:
Credit Risk Category
Securities Type 1 2 3 Fair Value
U.S. Government
Agency Securities $ 8,476,634 $ - $ - $ 8,476,634
Commercial Paper 13,552,301 - - 13,552,301
Total Investments $22,028,935 $ - $ - $22,028,935
Total Deposits (See Note 2A) 585,291
Total Investments and Deposits 22,614,226
Less Restricted Cash and Investments 1,962,960
Net Cash,Cash Equivalents and Investments $ 20,651,266
_ In fiscal 2001,the City recorded an unrealized loss of$14,735 for certain investments. This loss is unlikely to occur
do to the fact that the City generally holds its investments until maturity.
3 FIXED ASSETS
Changes in the General Fixed Assets Account Group during 2001 were as follows:
Balance Transfers/ Balance
Jan 1, 2001 Additions Deletions Dec 31,2001
_ Land $ 4,104,085 $ 866,853 $ - $ 4,970,938
Buildings 2,568,286 24,260 - 2,592,546
Other Improvements 17,197,695 1,585,862 444 18,783,113
Vehicles 210,451 - 14,777 195,674
Machinery&Equipment 1,523,067 145,311 288,374 1,380,004
Total $25,603,584 $2,622,286 $ 303,595 $27,922,275
37
City of Hopkins,Minnesota _
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
Changes in proprietary fund type property and equipment during 2001 were as follows:
Balance Balance
Jan 1, 2001 Additions Deletions Dec 31,2001
Land $ 348,397 $ - $ - $ 348,397
Buildings 6,561,478 8,030 - 6,569,508
Other Improvements 18,192,405 2,291,631 - 20,484,036
Machinery&Equipment 5,819,291 584,303 189,305 6,214,289
Construction in Progress 1,560,736 83,873 1,560,736 83,873
Total $32,482,307 $ 2,967,837 $1,750,041 $33,700,103
Less: Accumulated depreciation 11,304,121
Net Fixed Assets $22,395,982
4 LONG-TERM DEBT —
Changes in long-term debt during 2001 were as follows:
Balance Balance
Jan 1, 2001 Additions Deductions Dec 31,2001
General Obligation Bonds $15,218,543 $1,305,000 $ 745,847 $15,777,696
Special Assessment Bonds 1,975,000 820,000 250,000 2,545,000
Total 17,193,543 2,125,000 995,847 18,322,696
Enterprise Revenue Bonds 5,475,000 1,610,000 345,000 6,740,000
Total $22,668,543 $3,735,000 $1,340,847 $25,062,696
The long-term debt obligations outstanding at year-end are summarized as follows:
Bonds Maturities Interest Rate Dec 31, 2001 _
General Obligation Bonds 2002-2021 2.75-8.10% $ 15,777,696
Special Assessment Bonds 2002-2010 2.75-5.60% 2,545,000 _
Revenue Bonds 2002-2015 2.75-5.50% 6,740,000
38
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
Long-term debt maturities(including interest of$10,058,829)are as follows:
Year Ending Special
December 31 General Revenue Assessment Total
2002 3,143,735 2,177,382 1,090,733 6,411,850
2003 1,877,538 559,183 269,276 2,705,997
2004 1,741,949 570,675 266,995 2,579,619
2005 1,793,350 571,048 259,335 2,623,733
2006 1,789,703 565,548 251,470 2,606,721
2007 1,859,581 568,899 248,168 2,676,648
2008 1,840,758 570,821 239,330 2,650,909
_ 2009 1,844,725 561,596 107,415 2,513,736
2010 1,023,280 561,464 107,520 1,692,264
Thereafter 6,995,348 1,664,700 - 8,660,048
_ Less: Interest 8,132,271 1,631,316 295,242 10,058,829
$ 15,777,696 $ 6,740,000 $ 2,545,000 $ 25,062,696
During 2001,the City issued$3,735,000 in General Obligation Refunding Bonds,Series 2001. The total proceeds of
$3,668,223 are to be used to finance a crossover debt refunding of 1992 Permanent Improvement Revolving Fund
Bonds, 1993B G.O.Storm Sewer Revenue Refunding Bonds and 1993D G.O.Park and Recreational Facilities
Refunding Bonds. The proceeds will remain in place until the crossover date,at which time they will payoff the
outstanding debt. The issues will be reported on the City's financial statements until the call date of February 1,
2002. for the Series 1992, 1993B and 1993D Bonds. The cumulative savings on this refunding will be$195,059,and
the net present value of savings is$165,677.
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 Water and
Storm Sewer Utility Funds current revenues.
_ City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and repayment
monies are generated by the collection of Special Assessments and General levies.
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market value. At December
31, 2001, the debt limit for the City was $19,424,044 but only $2,760,000 of general obligation and revenue bonds
were applicable to the limit. The legal debt margin was$16,664,044.
39
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001 —
5 DESIGNATIONS AND RESERVES OF FUND EQUITY
Fund equity in the various funds has been reserved or designated at December 31,2001 as follows:
Reserved
General Fund: —
Inventories $ 78,241
Advance to other funds 534,783
Prepaid items 4,364 —
Total $ 617,388
Special Revenue Funds:
Loans receivable 2,341,035 —
Long term receivables 2,370,827
Valley Park Condominiums 55,100
Patio Homes 49,862 _
Total 4,816,824
Debt Service Funds:
Debt service 4,727,313
Enterprise Funds: —
Storm Sewer Utility Fund:
Bonds and Interest 1,913,960
Total Reserved $12,075,485
Designated
General Fund: —
Shady Oak Beach Development $ 122,816
Capital Projects transfer 50,000
Downtown Stage 32,000 —
Budget Carryovers 61,000
Working Capital 2,295,610
Total 2,561,426 —
Special Revenue Funds
Housing Rehab 85,000
Economic and Community Development 525,000
State Chemical Assessment 24,754 —
Cable TV equipment 2,000
Total 636,754
Capital Projects Funds: —
Street Improvements 3,257,006
Total Designated $6,455,186 —
40
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31,2001
6 1NTERFUND 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 31,2001:
Interfund Interfund
Fund Receivable Payable
General Fund $ 132,883 $ -
Special Revenue Funds:
Economic Development Fund 1,695,587 -
_ Tax Increment 1.1 Fund 755,227 -
Community Development Block Grant Fund - 7,500
Art Facility Construction Fund - 42,000
Tax Increment 1.2 Fund - 1,932,735
Paratransit Fund - 13,000
Housing Rehabilitation Fund 7,500 -
Cable TV Fund 10,000 -
- Depot Coffee House Fund - 35,000
Tax Increment 2.6 Fund - 476,079
Tax Increment 2.8 Fund - 33,353
_ Debt Service Funds
Improvement Revolving Bonds 1992 1,465 -
Park and Recreation Refunding Bonds 1993 - 1,465
Capital Project Funds:
Permanent Improvement Revolving Fund 383,443 -
Municipal State Aid Fund - 8,843
Enterprise Funds:
Water Utility Fund - 75,451
Sanitary Sewer Fund - 440
Storm Sewer Utility Fund - 307,679
Housing and Redevelopment Authority Fund - 42,560
Art Center Fund - 10,000
Total $2.986.105 $2.986.105
41
City of Hopkins,Minnesota -
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 2001 -
7 SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains eight Enterprise funds which account for water, sewer, refuse, storm sewer utility operations,
pavilion/ice arena operations, art center operations, skate park operations and low income housing rentals. Segment
information for the year ended December 31,2001 is as follows:
Storm
Water Sewer Refuse Sewer Total
Utility Utility Utility Utility Utility
Fund Fund Fund Fund Funds
Operating Revenues $ 988,725 $ 1,408,799 $ 570,272 $ 676,492 $ 3,644,288 -
Depreciation Expense 273,556 146,414 31,898 174,951 626,819
Operating Income(Loss) 19,248 36,608 (104,160) 383,043 334,739
Operating Transfer Out 62,774 - - - 62,774 _
Net Income(Loss) (159,886) 96,698 (45,668) 241,532 132,676
Grants - - 29,105 - 29,105
Property and Equipment:
Additions 525,046 22,256 2,050 488,572 1,037,924 -
Deletions - - - - _
Net Working Capital 1,195,774 1,329,038 577,028 (231,930) 2,869,910
Total Assets 6,394,378 4,617,550 1,076,347 8,411,285 20,499,560 -
Bonds Payable/Advance 1,945,000 - - 4,795,000 6,740,000
Contributed Capital - 472,684 - - 472,684
Total Equity $ 4,243,988 $ 4,529,381 $ 1,018,473 $ 3,225,791 $ 13,017,633 -
7 SEGMENT INFORMATION FOR ENTERPRISE FUNDS (continued)
Pavilion/ Total
Ice Art Skate Housing All
Arena Center Park Authority Enterprise -
Fund Fund Fund Fund Funds
Operating Revenues $ 266,753 $ 202,617 $ 39,299 $ 209,296 $ 4,362,253
Depreciation Expense 58,298 80,081 3,038 - 768,236 -
Operating Income(Loss) (53,057) (208,571) (14,959) (85,323) (27,171)
Operating Transfer In - 61,000 - - 61,000
Operating Transfer Out - - - - 62,774
Net Income(Loss) (49,755) (170,086) (14,209) 238 (101,136)
Grants - - - 32,114 61,219
Property and Equipment: _
Additions 8,030 - - - 1,045,954
Deletions - - - - -
Net Working Capital 74,151 (243,359) 11,008 (12,027) 2,699,683
Total Assets 2,002,181 3,841,511 36,352 71,265 26,450,869 -
Bonds Payable/Advance - 834,783 - - 7,574,783
Contributed Assets 2,085,025 3,820,618 - - 6,378,327
Total Equity $ 1,977,181 $ 2,750,549 $ 35,313 $ (12,027) $ 17,768,649
42
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
8 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), the Public Employees Police and Fire Fund (PEPFF) and the Local
_ Government Correctional Service Retirement Fund (LGCSRF), which are cost sharing, multiple-employer
retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered
by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan.
All police officers, fire fighters and peace officers who qualify for membership by statute are covered by PEPFF.
Members who are employed in a county correctional institution as a correctional guard or officer, a joint
jailer/dispatcher, or as a supervisor of correctional guards or officers or of joint jailers/dispatchers and are directly
responsible for the direct security, custody, and control of the county correctional institution and its inmates are
covered by the LGCSRF.
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 PERFs Coordinated and Basic Plan members. The retiring
member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method
2). Under Method 1,the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of
the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated
Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year.
Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent
for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0
percent for each year of service. The annuity accrual rate is 1.9 percent for each year of service for LGCSRF.
For all PEPFF members,LGCSRF 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,PEPFF, and LGCSRF. That report may be obtained by writing to PERA,60 Empire Drive
#200,St. Paul,Minnesota, 55103-1855 or by calling(651)296-7460 or 1-800-652-9026.
-- 43
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001 —
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 6.20% of their annual covered salary. LGCSRF members are required to contribute 5.83% 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, 9.3% for PEPFF
members, and 8.75% for LGCSRF members. Member and employer contribution rates for Basic and coordinated
members will increase by .35% effective January 2002. The City's contributions to the Public Employees
Retirement Fund for the years ending December 31, 2001, 2000, and 1999 were $196,695, $183,408, and
$172,443,respectively. The City's contributions to the Public Employees Police &Fire Fund for the years ending
December 31, 2001, 2000, and 1999 were $143,516, $135,288, and $139,731, 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 20 years. These benefit provisions and all other
requirements are consistent with enabling statutes. —
Funding Policy and Annual Pension Information
The governing board of the Association requests changes in benefit levels and contribution requirements that must
be approved by the City Council. The funding policy provides that contributions from the City and from the State
of Minnesota are in amounts sufficient to accumulate assets to pay benefits when due. The City passes through —
state aids allocated to the plan, in accordance with state statutes. The annual pension information is as follows:
2001 Contributions: City $29,000
State $56,885 —
Actuarial valuation date: 12/31/01
Actuarial cost method: Entry age normal actuarial cost method
Assumed rate of return: 5% —
Actuarial valuation period Open
Amortization method Level dollar—open
Amortization period Ten years —
Inflation rate None
Projected salary increases Not applicable
Post retirement benefit increases $200 per year of service
44
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31,2001
Annual Pension Benefit Cost for Past Three Years
Annual Pension % of Annual Pension Net Pension Obligation
Year Ended Cost(APC) Cost Contributed At Year Ended
12/31/01 $ 81,137 105 % 2,610,924
12/31/00 $ 66,481 128 % 2,436,824
12/31/99 $ 73,024 113 % 2,380,543
Actuarial Valuations
Actuarial Actuarial Accrued Excess(Under)
Actuarial Value of Liability(AAL) Of Assets Funded
Valuation Assets Entry Age Over AAL Ratio
Date (a) (b) (a-b) (a/b)
12/31/01 2,726,858 2,610,924 115,934 104%
12/31/00 2,694,630 2,436,824 257,406 111%
12/31/99 2,540,500 2,380,543 159,950 107%
The estimated accrued liability of$2,610,924 at December 31, 2001 was calculated using the State of Minnesota
Schedule I form for lump sum pension plans. This results in over net assets available for benefits of$115,934 as
of December 31, 2001. The Hopkins Fire Department is a volunteer organization and therefore does not have
payroll to disclose.
9. BUDGET INFORMATION
For the year ended December 31, 2001, actual expenditures exceeded the budgeted amount in the Tax Increment
Districts 2-8,2-9 and 2-10.
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 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 and the Art Center Construction.
Budgeted Special Non-budgeted Total Special
Revenue Funds Funds Revenue Funds
Total Revenue $ 3,677,327 $ 98,793 $ 3,776,120
Total Expenditure $ 3,090,072 $ 32,235 $ 2,399,492
Total Other Financing Sources (Uses) $(1,870,621) $ 168,000 $ (1,702,621)
10 FUND BALANCE AND RETAINED EARNINGS DEFICITS
At December 31, 2001, the following funds had deficit fund balances or retained earnings. These deficits will be
corrected through future tax levies,contributions or reimbursements:
Art Facility Construction $ 39,982
Tax Increment 2.6 $ 456,938
Pavilion/Ice Arena $ 107,844
Art Center $1,070,069
Housing Authority $ 12,027
— 45
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 2001
11 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$652,648 at December 31,2001. —
12 CLAIMS AND LITIGATION
The City had the usual and customary types of miscellaneous claims pending at year-end, which are of a minor nature
and usually all covered by insurance carried for that purpose. The City carries a$1,000,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
13 SUBSEQUENT EVENTS
On February 21, 2002, the City purchased property with economic development funds in the amount of$385,000. —
The property is part of a redevelopment project in the East end of downtown.
14 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$20,000 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.
15 NEW FUNDS —
The City created a new Insurance Risk Fund. The Insurance Risk fund is an internal service fund. This fund will be
used to pay for insurance deductions and premiums related to property,municipal liability and automobile coverage. —
46
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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. _
48
CITY OF HOPKINS,MINNESOTA B
GENERAL FUND
BALANCESHEET
December 31,2001
With Comparative Amounts for December 31, 2000
2001 2000
ASSETS
Cash and investments $ 3,110,992 $ 3,186,761
Taxes receivable 193,961 131,353
Accounts receivable 23,632 49,077
Accrued interest receivable 40,018 53,462
Due from other funds 132,883 12,000
Due from other governments 41,733 39,300
Prepaid items 4,364 -
Advance to other funds 534,783 572,868
Inventory 78,241 79,692
Total Assets $ 4,160,607 $ 4,124,513
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 253,502 $ 255,800
Compensated absences payable 541,230 534,977
Due to other funds - 26,037
Deferred revenue 159,281 173,182
_ Deposits payable 7,889 7,890
Total Liabilities 961,902 997,886
Fund Balance:
Reserved:
Inventory 78,241 79,692
Advance to other funds 534,783 572,868
Prepaid Items 4,364 -
Unreserved:
Designated for downtown park stage 32,000 32,000
Designated for Shady Oak Beach Development 122,816 136,830
Designated for budget carryovers 61,000 26,600
Designated for capital improvement fund 50,000 100,000
Designated for working capital 2,295,610 2,150,966
Undesignated 19,891 27,671
Total Fund Balance 3,198,705 3,126,627
Total Liabilities and Fund Balance $ 4,160,607 $ 4,124,513
49
CITY OF HOPKINS,MINNESOTA B-1
GENERAL FUND -
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance--
favorable 2000 -
Budget Actual (unfavorable) Actual
Revenues:
Property taxes $ 4,692,361 $ 4,740,931 $ 48,570 $ 4,327,792
Licenses and permits 363,730 377,048 13,318 428,435
Intergovernmental 2,148,833 2,175,051 26,218 2,134,678
Fines and forfeitures 110,000 113,353 3,353 111,221
Charges for services 157,460 193,337 35,877 218,832 -
Investment earnings 250,000 160,343 (89,657) 165,005
Other 62,700 95,428 32,728 49,981
Total Revenues 7,785,084 7,855,491 70,407 7,435,944 -
Expenditures:
General government 824,201 827,483 (3,282) 828,027
Public safety 3,383,016 3,359,401 23,615 3,158,178
Community development 777,037 759,178 17,859 670,252
Public works 1,601,279 1,573,614 27,665 1,500,689
Recreation 488,046 480,186 7,860 460,528
Other 36,878 34,290 2,588 1,318
Capital outlay 638,868 617,882 20,986 550,894 -
Total Expenditures 7,749,325 7,652,034 97,291 7,169,886
Excess of revenues over expenditures 35,759 203,457 167,698 266,058
Other Financing Sources(Uses):
Operating transfers out: (36,359) (31,379) 4,980 (16,943) -
Excess of revenues over expenditures
and other financing sources (uses) (600) 172,078 172,678 249,115 -
Fund Balance-January 1 3,126,627 3,126,627 - 2,877,512
Residual equity transfer out (100,000) (100,000) - -
Fund Balance -December 31 $ 3,026,027 $ 3,198,705 $ 172,678 $ 3,126,627
50 -
CITY OF HOPKINS,MINNESOTA B-2
GENERAL FUND
SCHEDULE OF REVENUES -BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31,2000
_ 2001
Variance--
Adjusted favorable 2000
_ Budget Actual (unfavorable) Actual
Taxes
General property taxes $ 3,994,233 $ 4,093,235 $ 99,002 $ 3,735,932
_ Fiscal disparities 698,128 647,696 (50,432) 591,860
Total Taxes 4,692,361 4,740,931 48,570 4,327,792
Licenses and permits
Business 127,230 129,606 2,376 135,277
Non-business 236,500 247,442 10,942 293,158
Total Licenses and permits 363,730 377,048 13,318 428,435
Intergovernmental
Local government aids 840,291 840,291 - 838,916
_ Homestead credit 991,632 991,632 - 991,388
State grants 97,610 125,601 27,991 62,961
Insurance premium-police 139,800 145,043 5,243 143,123
_ Insurance premium-fire 57,000 56,885 (115) 56,480
Federal grants 18,000 11,843 (6,157) 37,376
Other grants 4,500 3,756 (744) 4,434
Total Intergovernmental 2,148,833 2,175,051 26,218 2,134,678
Fines and forfeitures
Court fines 110,000 113,353 3,353 111,221
Charges for services
General government 9,240 22,817 13,577 4,282
Public safety 29,970 50,596 20,626 47,200
Public works 2,950 4,613 1,663 3,699
Recreation 53,000 44,441 (8,559) 66,281
Community Development 62,300 70,870 8,570 97,370
Total Charges for services 157,460 193,337 35,877 218,832
Other
Investment earnings 250,000 160,343 (89,657) 165,005
Miscellaneous 62,700 95,428 32,728 49,981
Total Other 312,700 255,771 (56,929) 214,986
Total Revenues $ 7,785,084 $ 7,855,491 $ 70,407 $ 7,435,944
51
CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND -
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance
favorable 2000
GENERAL GOVERNMENT Budget Actual (unfavorable) Actual
Mayor and Council
Salaries and employee benefits $ 26,279 $ 26,267 $ 12 $ 25,886
Materials, supplies and services 78,070 77,168 902 86,713 -
Total 104,349 103,435 914 112,599
Administrative Services -
Salaries and employee benefits 344,155 336,146 8,009 309,484
Materials, supplies and services 60,441 60,502 (61) 63,904
Capital outlay 5,135 5,135 - 5,748
Total 409,731 401,783 7,948 379,136
Less expenditures charged to other activities (103,170) (95,188) (7,982) (59,715) -
Net 306,561 306,595 (34) 319,421
Finance _
Salaries and employee benefits 241,829 237,912 3,917 228,778
Materials, supplies and services 38,349 39,523 (1,174) 44,695
Capital outlay 24,727 24,727 - 17,507 -
Total 304,905 302,162 2,743 290,980
Less expenditures charged to other activities (161,923) (159,273) (2,650) (162,887)
Net 142,982 142,889 93 128,093 -
Legal Services
Materials, supplies and services 99,450 97,517 1,933 97,389 --
Municipal Building
Salaries and employee benefits 112,572 93,124 19,448 105,450 -
Materials, supplies and services 148,405 164,538 (16,133) 141,004
Capital outlay 32,951 31,961 990 6,077
Total 293,928 289,623 4,305 252,531 -
Less expenditures charged to other activities (175,000) (175,741) 741 (175,741)
Net 118,928 113,882 5,046 76,790
Elections
Salaries and employee benefits 10,853 10,349 504 11,176 -
Materials, supplies and services 9,388 9,385 3 15,169
Capital outlay - - - 2,000
Total 20,241 19,734 507 28,345 -
52
CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance--'
favorable 2000
GENERAL GOVERNMENT(continued) Budget Actual (unfavorable) Actual
City Clerk and Reception
Salaries and employee benefits $ 106,848 $ 112,883 $ (6,035) $ 111,648
Materials, supplies and services 9,255 13,871 (4,616) 8,573
Capital outlay 1,994 1,994 - 2,530
Total 118,097 128,748 (10,651) 122,751
Less expenditures charged to other activities (21,600) (21,500) (100) (23,499)
Net 96,497 107,248 (10,751) 99,252
TOTAL GENERAL GOVERNMENT 889,008 891,300 (2,292) 861,889
PUBLIC SAFETY
Police
Police Administration
Salaries and employee benefits 246,133 229,301 16,832 245,639
_ Materials, supplies and services 46,500 78,829 (32,329) 75,323
Capital outlay 62,207 61,607 600 56,809
Total 354,840 369,737 (14,897) 377,771
Less expenditures charged to other activities (334,812) (335,760) 948 (354,298)
Net 20,028 33,977 (13,949) 23,473
Police Patrol and Investigation
Salaries and employee benefits 1,679,422 1,638,168 41,254 1,507,044
Materials, supplies and services 523,301 463,480 59,821 492,013
Capital outlay 84,440 105,649 (21,209) 82,399
Total 2,287,163 2,207,297 79,866 2,081,456
Police Services
Salaries and employee benefits 566,559 614,746 (48,187) 595,002
Materials, supplies and services 196,555 193,008 3,547 165,897
Capital outlay 39,014 37,211 1,803 50,629
Total 802,128 844,965 (42,837) 811,528
- Total Police 3,109,319 3,086,239 23,080 2,916,457
53
CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND -
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
Year Ended December 31, 2001 -
With Comparative Actual Amounts for Year Ended December 31, 2000
2001 -
Variance--
favorable 2000
PUBLIC SAFETY(continued) Budget Actual (unfavorable) Actual -
Fire
Salaries and employee benefits 288,671 308,746 (20,075) 277,942
Materials, supplies and services 170,687 168,883 1,804 153,616
Capital outlay 157,546 133,046 24,500 127,632
Total 616,904 610,675 6,229 559,190 _
TOTAL PUBLIC SAFETY 3,726,223 3,696,914 29,309 3,475,647
COMMUNITY DEVELOPMENT -
Planning and Economic Development
Salaries and employee benefits 117,962 111,609 6,353 108,192 -
Materials, supplies and services 56,414 58,382 (1,968) 27,540
Capital outlay 1,150 1,150 - 3,493
Total 175,526 171,141 4,385 139,225 -
Less expenditures charged to other activities - - - (9,860)
Net 175,526 171,141 4,385 129,365
Assessing
Salaries and employee benefits 199,856 203,186 (3,330) 188,600
Materials, supplies and services 21,450 23,178 (1,728) 21,077 -
Capital outlay 2,840 3,239 (399) 4,135
Total 224,146 229,603 (5,457) 213,812
Inspections
Salaries and employee benefits 323,356 315,163 8,193 266,061 _
Materials, supplies and services 57,999 47,660 10,339 68,642
Capital outlay 4,535 4,535 - 6,843
Total 385,890 367,358 18,532 341,546 -
TOTAL COMMUNITY DEVELOPMENT 785,562 768,102 17,460 684,723
54
_ CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND
SCHEDULE OF EXPENDITURES -BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance-
favorable 2000
PUBLIC WORKS Budget Actual (unfavorable) Actual
_ Public Works Buildings &Equipment Services
Salaries and employee benefits 168,534 168,719 (185) 164,014
Materials, supplies and services 50,714 50,714 - 48,643
-- Capital outlay 7,117 2,849 4,268 10,012
Total 226,365 222,282 4,083 222,669
Less expenditures charged to other activities (192,802) (189,826) (2,976) (194,698)
Net 33,563 32,456 1,107 27,971
Public Works Administration and Engineering
Salaries and employee benefits 251,742 244,960 6,782 240,023
Materials, supplies and services 40,952 45,604 (4,652) 36,342
Capital outlay 9,765 9,765 - 12,056
Total 302,459 300,329 2,130 288,421
Less expenditures charged to other activities (196,785) (205,755) 8,970 (168,727)
Net 105,674 94,574 11,100 119,694
Streets and Alleys:
Salaries and employee benefits 385,686 359,846 25,840 353,428
Materials, supplies and services 260,732 266,414 (5,682) 201,384
Capital outlay 82,715 82,715 - 81,620
Total 729,133 708,975 20,158 636,432
Less expenditures charged to other activities (104,571) (104,571) - (93,000)
Net 624,562 604,404 20,158 543,432
Sidewalk Repair and Mall Maintenance:
Salaries and employee benefits 28,388 19,570 8,818 11,484
Materials, supplies and services 24,860 17,791 7,069 30,850
Capital outlay 4,579 4,579 - -
Total 57,827 41,940 15,887 42,334
Signs, Signals and Lighting:
_ Salaries and employee benefits 57,227 74,911 (17,684) 68,793
Materials, supplies and services 190,230 179,671 109559 1869232
Capital outlay 219279 17,151 4,128 5,675
Total 268,736 2719733 (2,997) 260,700
55
CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND -
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001 -
Variance--
favorable 2000
PUBLIC WORKS (continued) Budget Actual (unfavorable) Actual -
Municipal Parks and Tree Service:
Salaries and employee benefits 474,962 493,192 (18,230) 454,384
Materials, supplies and services 161,410 152,374 9,036 161,537 -
Capital outlay 65,892 59,985 5,907 49,233
Total 702,264 705,551 (3,287) 665,154
TOTAL PUBLIC WORKS 1,792,626 1,750,658 41,968 1,659,285
RECREATION: -
Activity Center
Salaries and employee benefits 176,877 173,814 3,063 155,814 _
Materials, supplies and services 101,429 97,569 3,860 103,777
Capital outlay 5,982 5,584 398 1,496
Total 284,288 276,967 7,321 261,087 _
Park and Recreation
Salaries and employee benefits 74,200 68,001 6,199 70,009 _
Materials, supplies and services 135,540 140,802 (5,262) 130,928
Capital outlay 25,000 25,000 - 25,000
Total 234,740 233,803 937 225,937 -
TOTAL RECREATION 519,028 510,770 8,258 487,024
UNALLOCATED:
Materials, supplies and services 36,878 34,290 2,588 1,318
Transfer out 36,359 31,379 4,980 -
TOTAL UNALLOCATED 73,237 65,669 7,568 1,318
TOTAL EXPENDITURES $ 7,785,684 $ 7,683,413 $ 102,271 $ 7,169,886
56
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 administrative
regulation for specified purposes.
State Chemical Assessment Fund — This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Economic Development Fund - This fund was established to fund development
opportunities. Sources of funds are derived from the administration of loans and rental
property acquired with bonds and grants.
Real Estate Purchases and Sales Fund - This fund records the acquisition and disposition of
various properties with the proceeds used to improve city buildings.
Hennepin County CDBG - This fund accounts for receipt for Community Development
Block Grant funds and the issuance of loans and grants for housing rehabilitation.
Tax Increment Funds - These funds were established to record the use of tax increment
receipts and bond proceeds as applied in various Tax Increment Districts.
Paratransit Fund - This fund was established to account for the receipt of grants and rider
fees and expenditures for transit service.
Housing Rehab Fund - This fund was established to account for funds received under the
Community Development Block Grant funds and Section 8.
Parking Fund - This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
Section 8 Housing Fund — This fund administers the HUD Section 8 Rental Assistance
Program.
Cable TV Fund - This fund records the City's share of a five city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission.
Depot Coffee House Fund — This fund accounts for the operations of the coffee house
business and the teen center operations which are supported through grant funds.
57
CITY OF HOPKINS,MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31,2001
With Comparative Totals for December 31,2000 -
State Real Estate Hennepin Art Tax
Chemical Economic Purchases County Facility Increment _
Assessment Development &Sales CDBG Construction Districts
ASSETS
Cash and investments $ 16,707 $ 1,145,430 $ 54,399 $ 300 $ 1,018 $ 1,792,418
Taxes receivable - - - - - 64,911 -
Special assessments receivable -
Accounts receivable - 27,207 - - 1,000 11,200
Rehabilitation loans receivable - 514,060 - 132,717 - -
Accrued interest receivable - 12,514 593 - - 19,575
Due from other funds - 1,695,587 - - - 755,227
Due from other governments 9,003
Advance to other funds - 300,000 - - -
Long term loans receivable - - - - - 2,070,827
Restricted cash and investments - -
Total Assets $ 25,710 $ 3,694,798 $ 54,992 $ 133,017 $ 2,018 $ 4,714,158
LIABILITIES AND FUND BALANCE -
Liabilities:
Accounts payable $ 956 $ 9,995 $ - $ - $ - $ 372,006
Compensated absences payable 31,542 -
Due to other funds - - - 7,500 42,000 2,442,167
Due to other governments
Deferred revenue 202,501 - - - -Total Liabilities 956 244,038 - 7,500 42,000 2,814,173
Fund balances: -
Reserved for loans receivable 2,209,647 - 125,517 -
Reserved for Patio Homes
Reserved for Valley Park Condominiums -
Reserved for Business District Plan - - - -
Reserved for advance to other funds - 300,000 - - 2,070,827
Unreserved:
Designated for Equipment - - - - -
Designated for Cornerstone Project 525,000 - - - -
Designated for State Chemical Assess. 24,754 - - - - - -
Designated for Housing Rehab - - - - - -
Undesignated - 416,113 54,992 - (39,982) (170,842)
Total Fund Balances 24,754 3,450,760 54,992 125,517 (39,982) 1,899,985 -
Total Liabilities and Fund Balance $ 25,710 $ 3,694,798 $ 54,992 $ 133,017 $ 2,018 $ 4,714,158
58
C
Depot
Housing Section 8 Coffee Totals
Para-Transit Rehab Parking Housing Cable TV House 2001 2000
$ 1,120 $ 1,102,951 $ 370,366 $ 27,427 $ 291,314 $ 5,499 $ 4,808,949 $ 5,532,791
64,911 -
7,886 34,356 40,346 121,995 59,461
5,871 - - - - 652,648 667,644
12,570 3,866 315 3,264 - 52,697 77,897
7,500 - - 10,000 - 2,468,314 2,704,391
19,138 - 2,940 2,087 - - 33,168 32,016
_ - 300,000 300,000
_ - 2,070,827 2,110,630
49,000 - - - - 49,000 364,000
$ 20,258 $ 1,177,892 $ 377,172 $ 37,715 $ 338,934 $ 45,845 $ 10,622,509 $ 11,848,830
$ 7,170 $ 2,469 $ 6,571 $ 1,924 $ 7,645 $ 5,114 $ 413,850 $ 426,028
88 4,509 583 2,079 3,305 4,604 46,710 40,826
_ 13,000 - - - - 35,000 2,539,667 2,716,391
- 250 - - - - 250 250
17,165 - - - 219,666 214,161
20,258 7,228 24,319 4,003 10,950 44,718 3,220,143 3,397,656
5,871 - - - - 2,341,035 667,644
49,862 - - - - 49,862 170,890
55,100 55,100 55,100
200,000
- 2,370,827 2,410,630
2,000 - 2,000 8,500
- 525,000 -
- 24,754 9,882
85,000 - - - - 85,000 87,021
974,831 352,853 33,712 325,984 1,127 1,948,788 4,841,507
1,1.70,664 352,853 33,712 327,984 1,127 7,402,366 8,451,174
$ 20,258 $ 1,177,892 $ 377,172 $ 37,715 $ 338,934 $ 45,845 $ 10,622,509 $ 11,848,830
59
CITY OF HOPKINS,MINNESOTA —
TAX INCREMENT FUNDS
COMBINING BALANCE SHEET —
December 31, 2001
With Comparative Totals for December 31,2000
Tax Tax Tax Tax —
Increment Increment Increment Increment
1.1 1.2 2.1 2.6
ASSETS
Cash and investments $ 526,060 $ 72,327 $ 491,832 $ 8,140
Taxes receivable 15,126 - - -
Accounts receivable - - - 11,200 —
Accrued interest receivable 5,742 786 5,352 87
Due from other funds 755,227 - -
Due from other governments
Long term loans receivable 2,070,827
Restricted cash and investments - - -
Total Assets $ 1,302,155 $ 2,143,940 $ 497,184 $ 19,427 —
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 3,215 $ 328 $ 232,525 $ 286
Due to other funds - 1,932,735 - 476,079 _
Total Liabilities 3,215 1,933,063 232,525 476,365
Fund Balance(Deficit):
Reserved for Business District Redevop. - - - -
Reserved for long term loan receivable - 2,070,827 - -
Unreserved: _
Undesignated 1,298,940 (1,859,950) 264,659 (456,938)
Total Fund Balance 1,298,940 210,877 264,659 (456,938)
Total Liabilities and Fund Balance $ 1,302,155 $ 2,143,940 $ 497,184 $ 19,427
60
Ca
Tax Tax Tax Tax Tax
_ Increment Increment Increment Increment Increment Totals
2.7 2.8 2.9 2.10 2.11 2001 2000
$ 90,781 $ 75,655 $ 192,640 $ 7,576 $ 327,407 $ 1,792,418 $ 2,404,489
49,785 - - - - 64,911 -
- 11,200 10,463
989 882 2,096 82 3,559 19,575 40,691
- 755,227 810,630
- - 834
2,070,827 2,110,630
- - - 200,000
$ 141,555 $ 76,537 194,736 $ 7,658 $ 330,966 4,714,158 $ 5,577,737
$ 41,360 $ 29,846 $ 545 $ 291 $ 63,610 $ 372,006 $ 385,578
- 33,353 - - - 2,442,167 2,464,217
41,360 63,199 545 291 63,610 2,814,173 2,849,795
- - - - 200,000
- 2,070,827 2,110,630
100,195 13,338 194,191 7,367 267,356 (170,842) 417,312
100,195 13,338 194,191 7,367 267,356 1,899,985 2,727,942
$ 141,555 $ 76,537 $ 194,736 $ 7,658 $ 330,966 $ 4,714,158 $ 5,577,737
61
CITY OF HOPKINS,MINNESOTA
SPECIAL REVENUE FUNDS -
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000
State Real Estate Hennepin Art Tax -
Chemical Economic Purchases County Facility Increment
Assessment Development &Sales CDBG Construction Districts
Revenues: _
Taxes:
Tax increment $ - $ $ - $ - $ - $ 2,730,232
Special assessments -
Intergovernmental: -
Federal - - 75,293 -
State of Minnesota 54,452
Franchise fee _
Fines and forfeitures -
Charges for services - 35,721 3,700 - - 15,325
Investment earnings - 69,967 2,668 - - 59,669
Other - 20,613 - - 23,500 11,300 -
Total Revenues 54,452 126,301 6,368 75,293 23,500 2,816,526
Expenditures: _
Salaries and employee benefits 17,913 115,148 - - -
Materials,supplies and services 21,667 50,832 - 32,070 165 82,917
Capital outlay:
Office equipment&furnishing -
Land acquisitions - 10,000 - - - 871,896
Site improvements - 120,478 - - - 371,926
Other improvements - - - - 644,744 -
Other equipment - 1,695 - -Total Expenditures 39,580 298,153 - 32,070 165 1,971,483
Less expenditures charged to other
activities - (62,000) - - -Net 39,580 236,153 - 32,070 165 1,971,483
Excess(deficiency)of revenues over -
expenditures 14,872 (109,852) 6,368 43,223 23,335 845,043
Other Financing Sources(Uses):
Operating transfers in - - - 168,000 - -
Operating transfers out - (229,000) - - - (1,673,000)
Total Other Financing Sources(Uses) - (229,000) - - 168,000 (1,673,000)
Excess(deficiency)of revenues and other
financing sources over expenditures and
other financing uses 14,872 (338,852) 6,368 43,223 191,335 (827,957)
Fund Balance-January 1 9,882 3,789,612 48,624 82,294 (231,317) 2,727,942
Fund Balance-December 31 $ 24,754 $ 3,450,760 $ 54,992 $ 125,517 $ (39,982) $ 1,899,985 _
62
C-1
Depot
Housing Section 8 Coffee Totals
Para-Transit Rehab Parking Housing Cable TV House 2001 2000
$ _ $ _ $ _ $ _ $ _ $ - $ 2,730,232 $ 2,232,616
16,000 - - - 16,000 22,342
84,566 - - 159,859 90,901
60,273 5,775 - - - 10,000 130,500 944,425
138,614 138,614 126,587
53,899 - - - 53,899 37,036
16,780 368 27,431 - - 115,125 214,450 318,143
62,241 17,697 1,092 14,731 - 228,065 297,164
709 - - - 48,379 104,501 60,898
77,053 69,093 115,027 85,658 153,345 173,504 3,776,120 4,130,112
8,684 67,553 67,078 52,682 61,205 70,487 460,750 429,263
87,968 26,436 52,669 16,428 58,054 116,737 545,943 574,219
1,000 - 904 - - 1,904 6,688
- 881,896 5,929
121,028 - - - - 613,432 1,429,538
- 644,744
576 - 33,367 - 35,638 15,337
96,652 216,017 120,323 70,014 152,626 187,224 3,184,307 2,460,974
- (62,000) (61,482)
96,652 216,017 120,323 70,014 152,626 187,224 3,122,307 2,399,492
(19,599) (146,924) (5,296) 15,644 719 (13,720) 653,813 1,730,620
19,599 - - - - 11,780 199,379 66,942
(1,902,000) (656,999)
19,599 - - - - 11,780 (1,702,621) (590,057)
(146,924) (5,296) 15,644 719 (1,940) (1,048,808) 1,140,563
1,317,588 358,149 18,068 327,265 3,067 8,451,174 7,310,611
$ - $ 1,170,664 $ 352,853 $ 33,712 $ 327,984 $ 1,127 $ 7,402,366 $ 8,451,174
63
CITY OF HOPKINS,MINNESOTA —
TAX INCREMENT FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND —
CHANGES IN FUND BALANCE
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31, 2000 —
Tax Tax Tax Tax —
Increment Increment Increment Increment
1.1 1.2 2.1 2.6
Revenues: —
Taxes:
Tax increment $ 1,337,408 $ 60,866 $ 523,385 $ 7,824
Charges for services 15,325 —
Investment earnings 22,334 598 16,140 -
Other - - - 11,200
Total Revenues 1,375,067 61,464 539,525 19,024 —
Expenditures:
Materials, supplies and services 6,268 2,415 58,303 286 —
Capital outlay:
Land acquisitions 871,896
Construction - 200,000 - - —
Public improvemnts
Site improvements - - 255,680 -
Total Expenditures 878,164 202,415 313,983 286 —
Excess(deficiency)of revenues over 496,903 (140,951) 225,542 18,738
expenditures —
Other Financing(Uses)
Operating transfer to debt service (1,400,000) - (225,000) - —
Total Other Financing Sources (Uses) (1,400,000) - (225,000) -
Excess of revenues over _
expenditures and other financing uses (903,097) (140,951) 542 18,738
Fund balance (deficit) -January 1 2,202,037 351,828 264,117 (475,676) —
Fund balance (deficit) -December 31 $ 1,298,940 $ 210,877 $ 264,659 $ (456,938)
64
C-la
Tax Tax Tax Tax Tax
_ Increment Increment Increment Increment Increment Totals
2.7 2.8 2.9 2.10 2.11 2001 2000
$ 99,571 $ 46,362 $ 130,297 $ 17,344 $ 507,175 $ 2,730,232 $ 2,232,616
15,325 13,478
1,585 2,506 7,341 114 9,051 59,669 133,989
100 11,300 10,463
101,156 48,868 137,638 17,458 516,326 2,816,526 2,390,546
6,396 814 2,290 3,153 2,992 82,917 109,394
871,896 5,929
165,558 - - - - 365,558 -
279,186 279,186 47,243
41,002 68,306 - 6,938 - 371,926 361,682
212,956 69,120 2,290 10,091 282,178 1,971,483 524,248
- (111,800) (20,252) 135,348 7,367 234,148 845,043 1,866,298
- - (48,000) - - (1,673,000) (607,000)
(48,000) - - (1,673,000) (607,000)
(111,800) (20,252) 87,348 7,367 234,148 (827,957) 1,259,298
211,995 33,590 106,843 - 33,208 2,727,942 1,468,644
$ 100,195 $ 13,338 $ 194,191 $ 7,367 $ 267,356 $ 1,899,985 $ 2,727,942
65
CITY OF HOPKINS,MINNESOTA C-2
STATE CHEMICAL ASSESSMENT TEAM FUND —
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental revenue: —
State grant $ 55,000 $ 54,452 $ (548) $ 35,049
Investment earnings _ - - _
Total Revenues 55,000 54,452 (548) 35,049
Expenditures:
Salaries and employee benefits 17,000 17,913 (913) 15,363
Materials, supplies and services 38,000 21,667 16,333 22,683
Total Expenditures 55,000 39,580 15,420 38,046
Excess(deficiency)of revenues over expenditures - 14,872 14,872 (2,997)
Fund Balance-January 1 9,882 9,882 - 12,879
Fund Balance-December 31 $ 9,882 $ 24,754 $ 14,872 $ 9,882
66
CITY OF HOPKINS,MINNESOTA C-3
ECONOMIC DEVELOPMENT FUND
_ STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grants $ - $ - $ - $ 807,348
Charges for services 31,000 35,721 4,721 82,273
Investment earnings 44,000 69,967 25,967 38,636
Other 2,000 20,613 18,613 -
Total Revenues 77,000 126,301 49,301 928,257
Expenditures:
Salaries and employee benefits 111,666 115,148 (3,482) 108,926
_ Materials, supplies and services 71,986 50,832 21,154 43,240
Capital outlay:
Land 10,000 10,000 - -
_ Site Improvements 121,000 120,478 522 808,644
Other equipment 11695 1,695 - 466
Total 316,347 298,153 18,194 961,276
Less expenditures charged to other activities (61,483) (62,000) 517 (61,482)
Net 254,864 236,153 18,711 899,794
Excess (deficiency)of revenues over expenditures (177,864) (109,852) 67,495 28,463
Other Financing Sources (Uses):
Operating transfer from CDBG - - - 49,999
Operating transfer to Art Center funds (229,000) (229,000) - -
Total Other Financing Sources (Uses) (2299000) (229,000) - 499999
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses (406,864) (338,852) 68,012 78,462
Fund Balance-January 1 3,789,612 3,7899612 - 3,711,150
Fund Balance-December 31 $ 3,382,748 $ 3,450,760 $ 68,012 $ 3,789,612
67
CITY OF HOPKINS,MINNESOTA C-4
REAL ESTATE PURCHASES AND SALES FUND —
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Charges for services $ 3,700 $ 3,700 $ - $ 3,700 '
Investment earnings 2,500 2,668 168 2,842
Total Revenues 6,200 6,368 168 6,542
Expenditures: _ -
Excess of revenues over expenditures 6,200 6,368 168 6,542
Fund Balance-January 1 48,624 48,624 - 42,082
Fund Balance-December 31 $ 54,824 $ 54,992 $ 168 $ 48,624 —
68
CITY OF HOPKINS,MINNESOTA C-5
PARA-TRANSIT FUND
_ STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grant(Para-Transit) $ 65,273 $ 60,273 $ (5,000) $ 62,217
Charges for services 24,000 16,780 (7,220) 20,960
Contributions - - - 1,000
Total Revenues 89,273 77,053 (12,220) 84,177
Expenditures:
Salaries and employee benefits 9,545 8,684 861 6,890
_ Materials, supplies and services 90,204 87,968 2,236 89,230
Total Expenditures 99,749 96,652 3,097 96,120
Deficiency of revenues over expenditures (10,476) (19,599) (9,123) (11,943)
Other Financing Sources:
Operating transfer from the General Fund 10,476 19,599 9,123 11,943
Deficiency of revenues and other financing
sources over expenditures - - - -
Fund Balance-January 1 - - -
Fund Balance-December 31 $ - $ - $ - $ -
69
CITY OF HOPKINS,MINNESOTA C-6
HOUSING REHAB FUND -
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance-- _
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grants $ 3,860 $ 5,775 $ 1,915 $ 3,860
Charges for services - 368 368 843 -
Investment earnings 85,000 62,241 (22,759) 83,099
Other - 709 709 1,110
Total Revenues 88,860 69,093 (19,767) 88,912 -
Expenditures:
Salaries and employee benefits 67,449 67,553 (104) 64,446 -
Materials, supplies and services 34,153 26,436 7,717 24,043
Capital outlay:
Office equipment&furnishings 1,000 1,000 - 3,344 -
Other equipment
Valley Park Condominiums 55,100 - 55,100 42,267
Patio Homes 121,890 121,028 862 165,843 -
Total Expenditures 279,592 216,017 63,575 299,943
Excess (deficiency)of revenues over expenditures (190,732) (146,924) 43,808 (211,031) -
Fund Balance -January 1 1,317,588 1,317,588 - 1,528,619
Fund Balance -December 31 $ 1,126,856 $ 1,170,664 $ 43,808 $ 1,317,588
70
C-7
CITY OF HOPKINS,MINNESOTA
PARKING FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance-
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Special Assessments $ - $ 16,000 $ 16,000 $ 22,342
Court fines 27,000 53,899 26,899 37,036
Charges for services 36,830 27,431 (9,399) 23,264
Investment earnings 15,000 17,697 2,697 20,726
Total Revenues 78,830 115,027 36,197 103,368
Expenditures:
Salaries and employee benefits 67,148 67,078 70 56,534
Materials, supplies and services 60,410 52,669 7,741 34,453
Capital outlay:
Other equipment 576 576 - 1,500
Total Expenditures 128,134 120,323 7,811 92,487
Excess(deficiency)of revenues over expenditures (49,304) (5,296) 44,008 10,881
Fund Balance-January 1 358,149 358,149 - 347,268
Fund Balance-December 31 $ 308,845 $ 352,853 $ 44,008 $ 358,149
71
CITY OF HOPKINS,MINNESOTA C-g
SECTION 8 HOUSING FUND -
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance-- -
favorable 2000
Budget Actual (unfavorable) Actual
Revenues: -
Intergovernmental:
Federal-Section 8 $ 76,000 $ 84,566 $ 8,566 $ 76,270 _
Investment earnings 500 1,092 592 -
Total Revenues 76,500 85,658 9,158 76,270
Expenditures:
Salaries and employee benefits 58,159 52,682 5,477 46,772
Materials,supplies and services 12,524 16,428 (3,904) 8,189 -
Capital outlay 904 904 - 3,344
Total Expenditures 71,587 70,014 1,573 58,305
Excess of revenues over expenditures 4,913 15,644 10,731 17,965
Fund Balance-January 1 18,068 18,068 - 103
Fund Balance-December 31 $ 22,981 $ 33,712 $ 10,731 $ 18,068 -
72
- CITY OF HOPKINS,MINNESOTA C-9
CABLE TV FUND
- STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
- Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance-
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
- Franchise fees $ 120,000 $ 138,614 $ 18,614 $ 126,587
Charges for services - - - 15,009
Investment earnings 15,000 14,731 (269) 17,529
- Total Revenues 135,000 153,345 18,345 159,125
_ Expenditures:
Salaries and employee benefits 57,257 61,205 (3,948) 54,007
Materials, supplies and services 74,139 58,054 16,085 55,047
- Capital outlay 35,982 33,367 2,615 13,371
Total Expenditures 167,378 152,626 14,752 122,425
- Excess (deficiency) of revenues over expenditures (32,378) 719 33,097 36,700
Fund Balance-January 1 327,265 327,265 - 290,565
Fund Balance-December 31 $ 294,887 $ 327,984 $ 33,097 $ 327,265
73
CITY OF HOPKINS,MINNESOTA C-10
DEPOT COFFEE HOUSE FUND -
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001 _
Variance--
favorable 2000
Budget Actual (unfavorable) Actual _
Revenues:
Intergovernmental:
State grant $ 8,000 $ 10,000 $ 2,000 $ 35,951 _
Charges for services 126,500 115,125 (11,375) 119,844
Contributions 72,400 48,379 (24,021) 24,595
Other 500 - (500) - -
Total Revenues 207,400 173,504 (33,896) 180,390
Expenditures: -
Salaries and employee benefits 71,326 70,487 839 76,325
Materials, supplies and services 132,575 116,737 15,838 122,114
Capital Outlay 3,000 - 3,000 - -
Total Expenditures 206,901 187,224 19,677 198,439
Excess(deficiency) of revenues over expenditures 499 (13,720) (14,219) (18,049)
Other Financing Sources
Operating transfer from the general fund - 11,780 11,780 5,000 -'
Excess(deficiency) of revenues and other financing
sources over expenditures 499 (1,940) (2,439) (13,049)
Fund Balance-January 1 3,067 3,067 - 16,116
Fund Balance -December 31 $ 3,566 $ 1,127 $ (2,439) $ 3,067
74
CITY OF HOPKINS,MINNESOTA C-11
TAX INCREMENT 1.1 FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance—
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Taxes:
Tax increment $ 1,250,000 $ 1,337,408 $ 87,408 $ 1,278,921
Investment earnings - 22,334 22,334 87,742
Charges for services - 15,325 15,325 13,478
Total Revenues 1,250,000 1,375,067 109,742 1,380,141
Expenditures:
Materials, supplies and services 22,750 6,268 16,482 6,741
_ Capital outlay:
Land acquisition - 871,896 (871,896) 5,929
Construction 1,600,000 - 1,600,000 3,605
Total Expenditures 1,622,750 878,164 744,586 16,275
Excess(deficiency)of revenues over expenditures (372,750) 496,903 869,653 1,363,866
Other Financing Uses:
Operating transfer to Bonds of 1992-Refunding (355,000) (355,000) - -
Operating transfer to Bonds of 1993A-Refunding (150,000) (150,000) - (148,000)
Operating transfer to Bonds of 1993C-Refunding (895,000) (895,000) - (200,000)
Total Other Financing Uses (1,400,000) (1,400,000) - (348,000)
Excess(deficiency)of revenues over expenditures
and other financing uses (1,772,750) (903,097) 869,653 1,015,866
Fund Balance-January 1 2,202,037 2,202,037 - 1,186,171
Fund Balance -December 31 $ 429,287 $ 1,298,940 $ 869,653 $ 2,202,037
75
CITY OF HOPKINS,MINNESOTA C-12
TAX INCREMENT 1.2 FUND-ENTERTAINMENT CENTER
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001 _
Variance--
favorable 2000
Budget Actual (unfavorable) Actual _
Revenues:
Taxes:
Tax increment $ 66,000 $ 60,866 $ (5,134) $ 63,778
Investment earnings 4,500 598 (3,902) 5,974
Total Revenues 70,500 61,464 (9,036) 69,752
Expenditures:
Materials, supplies and services 2,500 2,415 85 4,155
Capital outlay: _
Construction 200,000 200,000 - -
Public improvements 46,511 - 46,511 47,243
Total Expenditures 249,011 202,415 46,596 51,398 —
Excess (deficiency)of revenues over expenditures (178,511) (140,951) 37,560 18,354
Fund Balance-January 1 351,828 351,828 - 333,474
Fund Balance-December 31 $ 173,317 $ 210,877 $ 37,560 $ 351,828
76
CITY OF HOPKINS,MINNESOTA C-13
TAX INCREMENT 2.1 FUND
_ STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance-
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Taxes:
Tax increment $ 580,000 $ 523,385 $ (56,615) $ 569,055
Investment earnings 16,000 16,140 140 19,891
Total Revenues 596,000 539,525 (56,475) 588,946
Expenditures:
Materials, supplies and services 80,500 58,303 22,197 56,593
Capital outlay:
Site improvements-R.L. Johnson 294,156 255,680 38,476 273,020
Total Expenditures 374,656 313,983 60,673 329,613
Excess of revenues over expenditures 221,344 225,542 4,198 259,333
Other Financing Uses
Operating transfer to debt service, 1997 -HRA (225,000) (225,000) - (225,000)
Excess (deficiency)of revenues over
expenditures and other financing uses (3,656) 542 4,198 34,333
Fund Balance -January 1 264,117 264,117 - 229,784
Fund Balance -December 31 $ 260,461 $ 264,659 $ 4,198 $ 264,117
77
CITY OF HOPKINS,MINNESOTA C-14
TAX INCREMENT 2.6 FUND —
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual _
Revenues:
Taxes:
Tax increment $ 8,000 $ 7,824 $ (176) $ 8,561 —
Other 11,024 11,200 176 10,463
19,024 19,024 - 19,024
Expenditures: —
Materials, supplies and services 800 286 514 1,675
Excess of revenues over expenditures 18,224 18,738 514 17,349
Fund balance (deficit) -January 1 (475,676) (475,676) - (493,025) —
Fund balance (deficit) -December 31 $ (457,452) $ (456,938) $ 514 $ (475,676)
78
CITY OF HOPKINS, MINNESOTA C-15
TAX INCREMENT 2.7 FUND
_ STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance—
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Taxes:
Tax increment $ 102,000 $ 99,571 $ (2,429) $ 105,075
Investment earnings 11,000 1,585 (9,415) 12,617
Total Revenue 113,000 101,156 (11,844) 117,692
EXPENDITURES:
Materials,supplies and services 6,500 6,396 104 12,275
Capital outlay:
Construction 166,000 165,558 442
Site improvements 50,000 41,002 8,998 51,358
Total Expenditures 222,500 212,956 9,544 63,633
Excess (deficiency)of revenues over expenditures (109,500) (111,800) (21,388) 54,059
Fund balance-January 1 211,995 211,995 - 157,936
Fund balance-December 31 $ 102,495 $ 100,195 $ (21,388) $ 211,995
79
CITY OF HOPKINS, MINNESOTA C-16
TAX INCREMENT 2.8 FUND —
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31,2000
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual
Revenues: —
Taxes:
Tax increment $ 45,000 $ 46,362 $ 1,362 $ 45,224 _
Investment earnings 1,500 2,506 1,006 2,379
Total Revenues 46,500 48,868 2,368 47,603
Expenditures:
Materials, supplies and services 6,000 814 5,186 1,783
Capital outlay: _
Site improvements 29,532 68,306 (38,774) 33,699
Total Expenditures 35,532 69,120 (33,588) 35,482
Excess (deficiency)of revenues over expenditures 10,968 (20,252) (31,220) 12,121
Fund balance-January 1 33,590 33,590 - 21,469 —
Fund balance-December 31 $ 44,558 $ 13,338 $ (31,220) $ 33,590
80
CITY OF HOPKINS,MINNESOTA C-17
TAX INCREMENT 2.9 FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001
Variance
favorable 2000
Budget Actual (unfavorable) Actual
Revenues:
Taxes
Tax increment $ 125,000 $ 130,297 $ 5,297 $ 126,922
Investment earnings 3,500 7,341 3,841 4,303
Total Revenues 128,500 137,638 9,138 131,225
Expenditures
Materials, supplies and services 2,246 2,290 (44) 24,432
Excess of revenues over expenditures 126,254 135,348 9,094 106,793
Other Financing Uses:
Operating transfer out for debt service (48,000) (48,000) - (34,000)
Excess of revenues over expenditures
and other financing uses 78,254 87,348 9,094 72,793
Fund Balance-January 1 106,843 106,843 - 34,050
Fund Balance-December 31 $ 185,097 $ 194,191 $ 9,094 $ 106,843
81
CITY OF HOPKINS,MINNESOTA C-18
TAX INCREMENT 2.10 FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2001
With Comparative Actual Amounts for Year Ended December 31, 2000
2001 _
Variance
favorable 2000
Budget Actual (unfavorable) Actual —
Revenues:
Taxes:
Tax increment $ - $ 17,344 $ 17,344 $ - —
Investment earnings - 114 114 -
Total Revenues - 17,458 17,458 -
Expenditures:
Materials, supplies and services 3,000 3,153 (153) -
Capital outlay: —
Site improvements 3,000 6,938 (3,938) -
Total Expenditures 6,000 10,091 (4,091) -
Excess(deficiency)of revenues over expenditures (6,000) 7,367 13,367 -
Fund balance -January 1
Fund balance(deficit)-December 31 $ (6,000) $ 7,367 $ 13,367 $ -
82
_ C-19
CITY OF HOPKINS,MINNESOTA
TAX INCREMENT 2.11 FUND
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31,2000
With Comparative Actual Amounts for Year Ended December 31, 1999
2001
Variance--
favorable 2000
Budget Actual (unfavorable) Actual
- Revenues:
Taxes:
Tax Increments $ 35,000 $ 507,175 $ 472,175 $ 35,080
Interest 1,000 9,051 8,051 1,083
Charges for services - 100 100 -
36,000 516,326 480,326 36,163
Expenditures:
Materials, supplies and services 5,000 2,992 2,008 1,740
Capital outlay:
Streets and Sidewalks 282,000 279,186 2,814 -
Total Expenditures 287,000 282,178 4,822 1,740
Excess (deficiency)of revenues over expenditures (251,000) 234,148 485,148 34,423
Fund balance (deficit)-January 1 33,208 33,208 - (1,215)
Fund balance (deficit) -December 31 $ (217,792) $ 267,356 $ 485,148 $ 33,208
83
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84 _
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.
85
CITY OF HOPKINS,MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31,2001
With Comparative Totals for December 31,2000
Taxable Improvement—
Improvement Redevelopment Taxable D Redevelopment Redevelopment Revolving
Revolving Refunding Redevelopment Refunding C Redevelopment Refunding A Bonds of 1992,
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Refunding Bonc
1990 1992 1996 1993 1996 1993 2001
ASSETS
Cash and investments $ - $ 193,657 $ 39,875 $ 825,712 $ 26,046 $ 160,211 $ 970,211
Taxes receivable - - - - - - 1,830
Special assessments receivable _
Accrued interest receivable - 2,102 434 8,971 284 1,744 10,542
Due from other funds - - - - - 1,465
Total Assets $ - $ 195,759 $ 40,309 $ 834,683 $ 26,330 $ 161,955 $ 984,048
LIABILITIES AND FUND BALANCE
Liabilities:
Due to other funds $
Deferred revenue - - - 541
Total Liabilities - - 541
Fund Balance:
Reserved for debt service 195,759 40,309 834,683 26,330 161,955 983,507
Total Liabilities and Fund Balance $ $ 195,759 $ 40,309 $ 834,683 $ 26,330 $ 161,955 $ 984,048
86
D
Park and
Recreational Taxable A Taxable B
Refunding D Housing Housing Improvement
Bonds of 1993, Housing Redevelopment Housing Improvement Improvement Revolving
Refunding bonds Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Totals
2001 1995 1997 1997 1999 1999 1999 2001 2000
$ 1,479,603 $ 126,503 $ 198,970 $ 148,534 $ 133,767 $ 251,414 $ 105,875 $ 4,660,378 $ 1,781,809
10,455 - - - - 1,037 13,322 8,863
989,863 2,803,744 2,591,476 4,613,779 - 10,998,862 11,673,414
16,066 1,421 2,162 1,599 1,446 2,713 1,150 50,634 25,612
1,465
$ 1,506,124 $ 1,117,787 $ 201,132 $ 2,953,877 $ 2,726,689 $ 4,867,906 $ 108,062 $ 15,724,661 $ 13,489,698
$ 1,465 $ - $ - $ - $ - $ $ - $ 1,465 $
2,679 988,991 2,8029364 2,589,076 4,612,050 182 10,995,883 11,670,538
4,144 988,991 2,802,364 2,589,076 4,612,050 182 10,997,348 11,670,538
1,501,980 128,796 201,132 151,513 137,613 255,856 107,880 4,727,313 1,819,160
$ 1,506,124 $ 1,117,787 $ 201,132 $ 2,953,877 $ 2,726,689 $ 4,867,906 $ 108,062 $ 15,724,661 $ 13,489,698
87
CITY OF HOPKINS,MINNESOTA
DEBT SERVICE FUNDS _
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000
Improvement
Taxable Revolving
Improvement Redevelopment Taxable D Redevelopment Redevelopment Bonds of
Revolving Refunding Redevelopment Refunding C Redevelopment Refunding A 1992,
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Refunding Bonds-
1990 1992 1996 1993 1996 1993 2001
Revenues:
Taxes: _
General property taxes, $ 210 $ - $ - $ - $ - $ - $ 56,486
Fiscal disparities - - - - - 8,876
Special assesments
Investment earnings - 153 927 16,161 1,086 5,552 14,647
Total Revenues 210 153 927 16,161 1,086 5,552 80,009
Expenditures:
Principal payments 45,000 180,847 - 50,000 - 155,000 135,000
Interest on bonds 1,507 179,153 50,823 132,940 28,500 14,900 53,393
Fiscal agent charges 150 300 300 300 300 300 658
Total Expenditures 46,657 360,300 51,123 183,240 28,800 170,200 189,051
Excess(deficiency)of revenues over
expenditures (46,447) (360,147) (50,196) (167,079) (27,714) (164,648) (109,042)
Other Financing Sources(Uses):
Proceeds from bond issuance - - - - - 820,000
Bond issuance expense - - - - - - (15,446)
Operating transfer from P.I.R.Fund - - - - - - 85,000
Operating transfer from Tax Increment 1.1 - 355,000 - 895,000 - 150,000 -
Operating transfer from Tax Increment 2.1 - - - - - - -
Operating transfer from Tax Increment 2.9 - - 40,000 - 8,000 -
Total Other Financing Sources - 355,000 40,000 895,000 8,000 150,000 889,554
Excess(deficiency)of revenues and other
financing sources(uses)over expenditures (46,447) (5,147) (10,196) 727,921 (19,714) (14,648) 780,512
Fund Balance-January 1 46,447 200,906 50,505 106,762 46,044 176,603 202,995
Fund Balance-December 31 $ - $ 195,759 $ 40,309 $ 834,683 $ 26,330 $ 161,955 $ 983,507
88
D-1
Park and
Recreational Taxable A Taxable B
Refunding D Housing Housing Improvement
Bonds of 1993, Housing Redevelopment Housing Improvement Improvement Revolving
Refunding Bonds Bonds of Bonds of Bonds of Bonds A of Bonds B of Bonds of Totals
2001 1995 1997 1997 1999 1999 1999 2001 2000
$ 201,212 $ - $ $ - $ - $ - $ 41,044 $ 298,952 $ 283,202
31,897 - - - 6,657 47,430 44,974
98,716 - 173,955 142,044 255,945 - 670,660 657,377
16,943 3,242 2,155 2,197 2,952 6,138 1,095 73,248 53,569
'- 250,052 101,958 2,155 176,152 144,996 262,083 48,796 1,090,290 1,039,122
160,000 35,000 120,000 45,000 - - 70,000 995,847 720,000
70,610 54,080 92,784 119,721 97,225 178,749 36,522 1,110,907 992,295
429 732 300 587 175 552 144 5,227 3,327
231,039 89,812 213,084 165,308 97,400 179,301 106,666 2,111,981 1,715,622
_ 19,013 12,146 (210,929) 10,844 47,596 82,782 (57,870) (1,021,691) (676,500)
_ 1,305,000 - - - - - 2,125,000 -
(9,710) - - - - (25,156) -
- - 72,000 157,000 263,000
- - - - 1,400,000 348,000
225,000 - - - - 225,000 225,000
_ _ _ - - 48,000 34,000
1,295,290 - 225,000 - - - 72,000 3,929,844 870,000
1,314,303 12,146 14,071 10,844 47,596 82,782 14,130 2,908,153 193,500
187,677 116,650 187,061 140,669 90,017 173,074 93,750 1,819,160 1,625,660
$ 1,501,980 $ 128,796 $ 201,132 $ 151,513 $ 137,613 $ 255,856 $ 107,880 $ 4,727,313 $ 1,819,160
89
CITY OF HOPKI NS, 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.
90 —
CITY OF HOPKINS,MINNESOTA E
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31,2001
With Comparative Totals for December 31,2000
Municipal Permanent
Park State Aid Capital Improvement Totals
Improvements Construction Improvements Revolving 2001 2000
ASSETS
Cash and investments $ 129,923 $ 2,572,341 $ 96,505 $ 34,579 $ 2,833,348 $ 3,462,349
Special assessments receivable - - - 2,143,685 2,143,685 1,968,660
Accounts receivable - 6,742 - 86,705 93,447 62,294
Accrued interest receivable 1,414 28,178 - 199 29,791 43,872
Due from other funds - - - 383,443 383,443 419,435
Due from other governments - 157,386 - 108,517 265,903 321,819
Total Assets $ 131,337 $ 2,764,647 $ 96,505 $ 2,757,128 $ 5,749,617 $ 6,278,429
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ 422 $ - $ 27,438 $ 27,860 $ 82,191
Retainage payable - 20,274 - 77,372 97,646 24,263
Due to other funds - 8,843 - - 8,843
Deferred revenue - 122,862 - 2,007,558 2,130,420 2,249,248
Total Liabilities - 152,401 - 2,112,368 2,264,769 2,355,702
Fund Balance:
Unreserved:
Designated for street improvements - 2,612,246 - 644,760 3,257,006 3,796,820
Undesignated 131,337 - 96,505 - 227,842 125,907
Total Fund Balance 131,337 2,612,246 96,505 644,760 3,484,848 3,922,727
Total Liabilities and
Fund Balance $ 131,337 $ 2,764,647 $ 96,505 $ 2,757,128 $ 5,749,617 $ 6,278,429
91
CITY OF HOPKINS,MINNESOTA E-1 -
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND _
CHANGES IN FUND BALANCE
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000
Municipal Permanent -
Park State Aid Capital Improvement Totals
Improvements Construction Improvements Revolving 2001 2000
Revenues: -
Special assessments $ - $ - $ - $ 566,932 $ 566,932 $ 429,866
Intergovernmental:
State of Minnesota - 631,443 - - 631,443 549,259 -
Charges for services 61,698 - - 2,030 63,728 139,315
Investment earnings 4,973 136,430 - 24,850 166,253 228,915
Total Revenues 66,671 767,873 - 593,812 1,428,356 1,347,355 -
Expenditures:
Projects 61,241 - 3,495 63,815 128,551 55,148 _
Street improvements - 480,336 - 1,216,209 1,696,545 479,934
Environmental - - - 45,910 45,910 43,447
Alley reconstruction - - - 1,003 1,003 77,882
Total Expenditures 61,241 480,336 3,495 1,326,937 1,872,009 656,411 -
Excess(deficency)of revenues
over expenditures 5,430 287,537 (3,495) (733,125) (443,653) 690,944 -
Other Financing Sources(Uses)
Operating transfer from Storm -
Operating transfer from Water - - - 62,774 62,774 -
Operating transfer to Skate Park - - - - - (28,308)
Operating transfer to Debt - - - (157,000) (157,000) (263,000) -
Total Other Financing Sources
(Uses) - - - (94,226) (94,226) (291,308)
Excess(deficency)of revenues and other
financing sources over expenditures
and other financing uses 5,430 287,537 (3,495) (827,351) (537,879) 399,636
Fund Balance-January 1 125,907 2,324,709 - 1,472,111 3,922,727 3,523,091
Residual equity transfer in - - 100,000 - 100,000 - -
Fund Balance-December 31 $ 131,337 $ 2,612,246 $ 96,505 $ 644,760 $ 3,384,848 $ 3,922,727
92
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
Skate Park Fund
Housing Authority Fund
93
CITY OF HOPKINS,MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31,2001
With Comparative Totals for December 31,2000
Water Sewer Refuse Storm Sewer
ASSETS
Utility Utility Utility Utility
Current assets: -
Cash and cash equivalents $ 1,304,996 $ 1,292,660 $ 578,516 $ 4,859
Accounts receivable 168,292 100,967 49,549 57,710
Accrued interest receivable 13,571 14,072 6,287 22,035
Due from other governments
Inventory 14,305 9,508 550 -
Prepaid expenses
Total current assets 1,501,164 1,417,207 634,902 84,604 -
Property and equipment
Land and land improvements 16,447 5,150 - 26,800
Buildings and structures 44,486 - 302,727
Distribution system 7,457,299 5,408,457 2,584 7,562,970
Water meters 451,789 - -
Machinery and equipment 305,064 306,736 424,605 12,876 -
Construction in progress 151 3,664 - 80,058
Total property and equipment 8,275,236 5,724,007 729,916 7,682,704
Less accumulated depreciation 3,382,022 2,523,664 288,471 1,269,983
Net property and equipment 4,893,214 3,200,343 441,445 6,412,721 '
Other Assets:
Restricted cash and cash equivalents-debt service - - - 1,913,960 -
Total Assets $ 6,394,378 $ 4,617,550 $ 1,076,347 $ 8,411,285
LIABILITIES AND FUND EQUITY
Current Liabilities: -
Accounts payable $ 49,429 $ 11,720 $ 35,879 $ 11,324
Compensated absences payable 32,260 45,659 17,940 3,694
Due to other funds 75,451 440 - 307,679 -
Due to other governments 3,016 30,350 4,055 -
Deferred revenue -
Accrued interest payable 45,234 - - 67,797
Bonds payable 100,000 - - 1,840,000 '
Total Current Liabilities 305,390 88,169 57,874 2,230,494
Long-term Liabilities: -
Advance from other funds(net of current portion) - - - -
Bonds payable(net of current portion) 1,845,000 - - 2,955,000
Total Long-term Liabilities 1,845,000 - - 2,955,000
Total Liabilities 2,150,390 88,169 57,874 5,185,494
Fund Equity:
Contributed capital-governmental grant - 472,684 - - -
Contributed capital - - - -
Retained Earnings:
Reserved for debt service - - - 1,913,960
Unreserved 4,243,988 4,056,697 1,018,473 1,311,831 '
Total Retained Earnings 4,243,988 4,056,697 1,018,473 3,225,791
Total Fund Equity 4,243,988 4,529,381 1,018,473 3,225,791
Total Liabilities and Fund Equity $ 6,394,378 $ 4,617,550 $ 1,076,347 $ 8,411,285 -
94
F
Pavilion/ Housing Totals
Ice Arena Art Center Skate Park Authority 2001 2000
$ 52,652 $ 7,754 $ 11,522 $ 63,531 $ 3,316,490 $ 4,161,039
34,784 5,066 400 646 417,414 380,675
553 - 125 - 56,643 64,698
11,162 - - - 11,162 5,498
24,363 24,693
7,088 7,088 6,295
99,151 12,820 12,047 71,265 3,833,160 4,642,898
300,000 - - 348,397 348,397
2,371,296 3,820,618 30,381 - 6,569,508 6,561,478
52,726 - - - 20,484,036 18,192,405
- 451,789 309,318
66,913 27,985 - - 1,144,179 1,063,494
- 83,873 1,560,736
2,490,935 4,148,603 30,381 - 29,081,782 28,035,828
587,905 319,912 6,076 - 8,378,033 7,609,797
1,903,030 3,828,691 24,305 - 20,703,749 20,426,031
- - 1,913,960 250,000
$ 2,002,181 $ 3,841,511 $ 36,352 $ 71,265 $ 26,450,869 $ 25,318,929
_ $ 14,091 $ 13,439 $ 642 $ 33,505 $ 170,029 $ 361,711
9,494 27,128 378 7,227 143,780 125,628
10,000 - 42,560 436,130 393,398
264 - 19 - 37,704 24,257
1,151 205,612 - - 206,763 151,474
- - - 113,031 44,808
- - 1,940,000 341,500
_ 25,000 256,179 1,039 83,292 3,047,437 1,442,776
- 834,783 - - 834,783 872,868
- - 4,800,000 5,133,500
834,783 - - 5,634,783 6,006,368
25,000 1,090,962 1,039 83,292 8,682,220 7,449,144
500,000 - - 972,684 972,684
2,085,025 3,320,618 - - 5,405,643 5,405,643
- - - 1,913,960 250,000
(107,844) (1,070,069) 35,313 (12,027) 9,476,362 11,241,458
(107,844) (1,070,069) 35,313 (12,027) 11,390,322 11,491,458
1,977,181 2,750,549 35,313 (12,027) 17,768,649 17,869,785
$ 2,002,181 $ 3,841,511 $ 36,352 $ 71,265 $ 26,450,869 $ 25,318,929
95
CITY OF HOPKINS,MINNESOTA -
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,
EXPENSES,AND CHANGES IN RETAINED EARNINGS
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000 -
Water Sewer Refuse
Utility Utility Utility -
Operating revenues:
Charges for services $ 947,074 $ 1,384,142 $ 487,229
Admissions and fees - - 83,023
Rental --
Leases 17,860 - -
Other 23,791 24,657 20
Total Operating Revenues 988,725 1,408,799 570,272
Operating expenses(excluding depreciation)
Salaries and employee benefits 297,588 169,076 210,546 -
Materials,supplies and services 398,333 241,026 324,571
Disposal costs - 815,675 107,417
Total Operating Expenses(excluding depreciation) 695,921 1,225,777 642,534 -
Operating income(loss)before depreciation expense 292,804 183,022 (72,262)
Depreciation expense 273,556 146,414 31,898 -
Operating income(loss) 19,248 36,608 (104,160)
Nonoperating revenue(expense) -
Interest income 64,689 60,090 29,387
Interest/fiscal agent expense (181,049) - -
Intergovernmental grants - - 29,105 -
Bond issuance expense
Other
Total nonoperating revenues (expenses) (116,360) 60,090 58,492 -
Income before other financing sources(uses) (97,112) 96,698 (45,668)
Other revenues(expenses)
Operating transfer from Park Dedication fund - -
Operating transfer from Economic Development fund - - -
Operating transfer to PIR fund (62,774) - -
Total other revenues(expenses) (62,774) - -
Net income(loss) (159,886) 96,698 (45,668)
Fund Equity
Retained Earnings-January 1 4,403,874 3,959,999 1,064,141
Retained Earnings-December 31 $ 4,243,988 $ 4,056,697 $ 1,018,473
96
F-1
Storm Sewer Pavilion/ Art Skate Housing Totals
Utility Ice Arena Center Park Authority 2001 2000
$ 676,492 $ - $ - $ - $ 207,024 $ 3,701,961 $ 3,817,021
1,843 - 39,204 - 124,070 181,434
247,708 55,275 - - 302,983 250,931
147,342 - - 165,202 158,650
17,202 - 95 2,272 68,037 43,655
676,492 266,753 202,617 39,299 209,296 4,362,253 4,451,691
31,285 166,738 238,011 41,937 86,018 1,241,199 1,140,275
87,213 94,774 93,096 9,283 208,601 1,456,897 1,639,881
- - - 923,092 835,835
118,498 261,512 331,107 51,220 294,619 3,621,188 3,615,991
557,994 5,241 (128,490) (11,921) (85,323) 741,065 835,700
174,951 58,298 80,081 3,038 - 768,236 702,329
383,043 (53,057) (208,571) (14,959) (85,323) (27,171) 133,371
47,333 3,302 400 750 210 206,161 292,351
(176,596) - (22,915) - - (380,560) (186,841)
32,114 61,219 172,672
(12,248) - - - - (12,248) (41,375)
53,237 53,237 44,068
(141,511) 3,302 (22,515) 750 85,561 (72,191) 280,875
241,532 (49,755) (231,086) (14,209) 238 (99,362) 414,246
28,308
61,000 - - 61,000 -
(62,774) -
61,000 - - (1,774) 28,308
241,532 (49,755) (170,086) (14,209) 238 (101,136) 442,554
2,984,259 (58,089) (899,983) 49,522 (12,265) 11,491,458 11,048,904
$ 3,225,791 $ (107,844) $ (1,070,069) $ 35,313 $ (12,027) $ 11,390,322 $ 11,491,458
97
CITY OF HOPKINS,MINNESOTA —
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS —
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000
Water Sewer Refuse
Utility Utility Utility
Cash Flows from Operating Activities: —
Operating income(loss) $ 19,248 $ 36,608 $ (104,160)
Adjustments to reconcile operating income(loss)to net cash
provided by operating activities: _
Depreciation expense 273,556 146,414 31,898
(Increase)decrease in:
Accounts and accrued interest receivable (24,595) 16,899 428
Due from other funds - - - —
Due from other governments - - -
Inventory (240) 77 493
Prepaid expense - - - —
Due from Metropolitan Waste Control Commission - - -
Accounts,compensated absences and accrued interest payable 11,800 (127,302) 3,542
Due to other funds 75,451 440 -
Due to other governments 2,763 10,350 51 —
Deferred revenue - - -
Cash Provided by(used)Operating Activities 357,983 83,486 (67,748) —
Cash Flows from Noncapital Financing Activities:
Intergovernmental grants - - 29,105
Other contributions - - - —
Operating transfer in - - -
Operating transfer out (62,774) - -
Cash Provided by(used)Noncapital Financing Activities (62,774) - 29,105
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (525,046) (22,256) (2,050)
Sale of property and equipment - - -
Proceeds from issuance of bonds - - -
Interest and other payments (181,049) - - —
Bond payments (115,000) - -
Cash Provided by(used)in Capital and Related Financing Activities (821,095) (22,256) (2,050)
Cash Provided by Investing Activities-interest received 64,689 60,090 29,387
Increase(decrease)in Cash and Cash Equivalents (461,197) 121,320 (11,306) _
Cash and Cash Equivalents-January 1 1,766,193 1,171,340 589,822
Cash and Cash Equivalents-December 31 $ 1,304,996 $ 1,292,660 $ 578,516
Cash and Cash Equivalents Components:
Cash and Cash Equivalents 1,304,996 1,292,660 578,516
Restricted Cash and Cash Equivalents - - - —
Total Cash and Cash Equivalents $ 1,304,996 $ 1,292,660 $ 578,516
98
F-2
Storm Sewer Pavilion/ Art Skate Housing Totals
Utility Ice Arena Center Park Authority 2001 2000
$ 383,043 $ (53,057) $ (208,571) $ (14,959) $ (85,323) $ (27,171) $ 133,371
174,951 58,298 80,081 3,038 - 768,236 702,329
(8,606) (9,116) (3,594) (209) 110 (28,683) 127,654
(5,664) - - - (5,664) 9,887
- 330 70
- - - (793) (793) (96)
- - - 26,421
13,297 2,828 (3,388) (55) (6,030) (105,308) 222,956
(85,719) - (28,085) - 42,560 4,647 194,201
264 - 19 - 13,447 (460)
171 55,118 - - 55,289 24,073
476,966 (6,276) (108,439) (12,166) (49,476) 674,330 1,440,406
- 32,114 61,219 172,672
53,237 53,237 4,326
_ - - 61,000 - - 61,000 28,308
(62,774) -
- 61,000 - 85,351 112,682 205,306
(488,572) (8,030) - - - (1,045,954) (2,815,836)
- - 39,742
1,610,000 - - - - 1,610,000 2,060,000
(188,844) - (22,915) - - (392,808) (228,216)
(230,000) - - - - (345,000) (205,000)
702,584 (8,030) (22,915) - - (173,762) (1,149,310)
47,333 3,302 400 750 210 206,161 292,351
1,226,883 (11,004) (69,954) (11,416) 36,085 819,411 788,753
691,936 63,656 77,708 22,938 27,446 4,411,039 3,622,286
$ 1,918,819 $ 52,652 $ 7,754 $ 11,522 $ 63,531 $ 5,230,450 $ 4,411,039
4,859 52,652 7,754 11,522 63,531 3,316,490 4,161,039
1,913,960 - - - - 1,913,960 250,000
$ 1,918,819 $ 52,652 $ 7,754 $ 11,522 $ 63,531 $ 5,230,450 $ 4,411,039
99
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
INTERNAL SERVICE FUND
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the government, on a cost
reimbursement basis. Revenues and expenses are recognized on the accrual basis.
Revenues are recognized in the accounting period in which they are earned and
become objectively measurable; expenses are recognized in the period incurred, if
objectively measurable.
Equipment Replacement Fund — This fund accounts for the acquisition of machinery
and equipment. User charges are billed to the various City departments.
Insurance Risk Fund — This fund accounts for the dividends and deductibles relating
to property and casualty insurance coverage. Deductibles are paid from past
dividends. Users are charged only if fund has a shortfall.
100
CITY OF HOPKINS,MINNESOTA G
INTERNAL SERVICE FUND
BALANCE SHEET
December 31,2001
With Comparative Totals for December 31,2000
Equipment Insurance Totals
_ Replacement Risk 2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 1,697,727 $ 43,389 $ 1,741,116 $ 1,478,190
Accounts receivable 123 - 123 754
Accrued interest receivable 13,140 - 13,140 13,718
Total current assets 1,710,990 43,389 1,754,379 1,492,662
Property and equipment
Machinery and equipment 4,618,321 - 4,618,321 4,446,479
Total property and equipment 4,618,321 - 4,618,321 4,446,479
Less accumulated depreciation (2,926,088) - (2,926,088) (2,709,845)
Net property and equipment 1,692,233 - 1,692,233 1,736,634
Total Assets $ 3,403,223 $ 43,389 $ 3,446,612 $ 3,229,296
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable $ - $ - $ - $ 99
Fund Equity:
Contributed capital 2,687,227 - 2,687,227 2,687,227
Retained Earnings:
Unreserved 715,996 43,389 759,385 541,970
Total Retained Earnings 715,996 43,389 759,385 541,970
Total Fund Equity 3,403,223 43,389 3,446,612 3,229,197
Total Liabilities and Fund Equity $ 3,403,223 $ 43,389 $ 3,446,612 $ 3,229,296
101
G-1
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND
STATEMENT OF REVENUES,EXPENSES,AND
CHANGES IN RETAINED EARNINGS -
Year Ended December 31,2001
With Comparative Totals for December 31,2000 _
Equipment Insurance Totals _
Replacement Risk 2001 2000
Operating revenues:
Charges for services $ 492,944 $ 43,389 $ 536,333 $ 487,945
Operating expenses(excluding depreciation):
Materials,supplies and services 13,285 - 13,285 19,996
Operating income before depreciation 479,659 43,389 523,048 467,949
Depreciation expense 405,546 - 405,546 359,401
Operating income 74,113 43,389 117,502 108,548
Nonoperating revenue:
Investment earnings 67,098 - 67,098 63,501 _
Gain on sale of property and equipment 32,815 - 32,815 42,600
Total nonoperating revenues 99,913 - 99,913 106,101
Net Income 174,026 43,389 217,415 214,649
Fund Equity:
Retained earnings-January 1 541,970 - 541,970 327,321
Retained earnings-December 31 $ 715,996 $ 43,389 $ 759,385 $ 541,970
102
G-2
CITY OF HOPKINS,MINNESOTA
INTERNAL SERVICE FUND
STATEMENT OF CASH FLOWS
Year Ended December 31,2001
With Comparative Totals for Year Ended December 31,2000
— Equipment Insurance Totals
Replacement Risk 2001 2000
Cash Flows from Operating Activities:
Operating income $ 74,113 $ 43,389 $ 117,502 $ 108,548
Adjustments to reconcile operating income(loss)to net cash
provided by operating activities:
Depreciation expense 405,546 - 405,546 359,401
(Increase)decrease in:
Accounts and accrued interest receivable 1,209 - 1,209 9,271
Accounts payable (99) - (99) (2,262)
Cash Provided by Operating Activities 480,769 43,389 524,158 474,958
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (361,145) - (361,145) (546,993)
Gain on sale of property and equipment 32,815 - 32,815 42,600
Cash(used in)Capital and Related Financing Activities (328,330) - (328,330) (504,393)
Cash Provided by Investing Activities- interest received 67,098 - 67,098 63,501
Increase in Cash and Cash Equivalents 219,537 43,389 262,926 34,066
Cash and Cash Equivalents-January 1 1,478,190 - 1,478,190 1,444,124
Cash and Cash Equivalents-December 31 $ 1,697,727 $ 43,389 $ 1,741,116 $ 1,478,190
103
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
AGENCY FUNDS
Agency Funds are established to account for custodial activities of assets held by the
City as a custodian of the funds.
Northwest Metro Drug Task Force - This fund accounts for the federal portion of
funds confiscated by the Northwest Metro Drug Task Force.
104
H
CITY OF HOPKINS,MINNESOTA
NORTHWEST METRO DRUG TASK FORCE AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year Ended December 31,2001
Balance Balance
January 1, December 31,
NW Metro Drug Task Force 2001 Additions Deductions 2001
ASSETS
Cash and cash equivalents $ 175,000 $ 155,698 $ 150,705 $ 179,993
Accrued interest receivable - 1,934 - 1,934
Due from other governments - 28,753 - 28,753
Total Assets $ 175,000 $ 186,385 $ 150,705 $ 210,680
LIABILITIES
Accounts Payable $ - $ 8,670 $ - $ 8,670
Due to NW Metro Drug Task Force 175,000 27,010 - 202,010
Total Liabilities $ 175,000 $ 35,680 $ - $ 210,680
105
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. —
106
— I
CITY OF HOPKINS,MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS
December 31,2001
With Comparative Amounts for December 31, 2000
2001 2000
GENERAL FIXED ASSETS:
— Land $ 4,970,938 $ 4,104,085
Buildings 2,592,546 2,568,286
Improvements other than buildings 18,783,113 17,197,695
Vehicles 195,674 210,451
Machinery and equipment 1,380,004 1,523,067
Total General Fixed Assets $ 27,922,275 $ 25,603,584
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 1,816,954 1,942,454
Special Revenue Funds 5,653,111 4,692,857
Capital Projects Funds 6,850,019 6,680,217
Special Assessments 7,808,018 6,493,883
Construction in progress 403,047 403,047
Total Investment in General Fixed Assets $ 27,922,275 $ 25,603,584
107
I-1
CITY OF HOPKINS,MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31,2001
Buildings Improvements Equipment
and Otherthan and
Function and Activity Total Land Structures Buildings Vehicles
Administration $ 1,782,659 $ 1,181,828 $ - $ 544,054 $ 56,777
Finance 4,208 - - - 4,208
Government buildings 696,875 - 634,776 - 62,099
Community services 53,304 - - - 53,304
Community development 1,414,503 1,410,799 - - 3,704 —
Activity center 912,562 - 843,120 - 69,442
Police 432,411 - 20,649 11,026 400,736
Fire 93,004 - - - 93,004 —
Public works 18,525,121 422,940 788,748 16,889,989 423,444
Parks 2,974,542 1,088,518 305,253 1,251,858 328,913
Special Revenue 946,900 866,853 - - 80,047 —
Park Improvements 86,186 - - 86,186 -
Total $ 27,922,275 $ 4,970,938 $ 2,592,546 $ 18,783,113 $ 1,575,678
108
_ 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 31,2001
- General General
Fixed Assets Fixed Assets
January 1, December 31,
Function and Activity 2001 Additions Deductions 2001
Administration $ 1,908,877 $ $ 126,218 $ 1,782,659
Finance 64,949 - 60,741 4,208
- Government buildings 680,163 22,510 5,798 696,875
Community services 58,118 399 5,213 53,304
Community development 1,425,111 - 10,608 1,414,503
- Activity center 912,002 3,602 3,042 912,562
Police 450,442 37,356 55,387 432,411
Fire 82,504 10,500 - 93,004
Public works 17,055,562 1,496,741 27,182 18,525,121
Parks 2,940,856 43,092 9,406 2,974,542
Special Revenue 946,900 946,900
Park Improvements 25,000 61,186 - 86,186
Total $ 25,603,584 $ 2,622,286 $ 303,595 $ 27,922,275
109
J
CITY OF HOPKINS,MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
STATEMENT OF GENERAL LONG-TERM DEBT
December 31,2001
With Comparative Amounts for December 31, 2000
2001 2000
AMOUNT AVAILABLE AND TO BE PROVIDED FOR _
THE PAYMENT OF GENERAL LONG-TERM DEBT:
Amount available in debt service funds $ 4,727,313 $ 1,819,160
Amount available in special revenue funds -
Amount to be provided by tax levies, tax increments, annual fees
and proceeds of real estate sales 13,595,383 15,374,383
Total Available and to be Provided $ 18,322,696 $ 17,193,543
GENERAL LONG-TERM DEBT PAYABLE:
General obligation redevelopment bonds payable $ 15,777,696 $ 15,218,543 —
Special assessment debt with governmental commitment 2,545,000 1,975,000
Total General Long-Term Debt Payable $ 18,322,696 $ 17,193,543
110
TTI
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(This page intentionally left blank) —
112 —
Table I
CITY OF HOPKINS,MINNESOTA
GOVERNMENTAL FUND TYPES -EXPENDITURES BY FUNCTION
Years 1992 Through 2001
(Amounts expressed in thousands)
(Unaudited)
Fiscal General Public Community Public Capital
Year Government Safety Development Works Recreation Outlay Total
1992 $ 1,439 $ 2,221 $ 629 $ 1,454 $ 99 $ 3,954 $ 9,796
1993 1,517 2,325 741 1,536 132 2,599 8,850
1994 1,610 2,481 956 1,574 113 4,717 11,451
1995 1,794 2,572 1,707 1,559 127 2,335 10,094
1996 1,240 2,727 634 1,587 146 4,265 10,599
1997 1,255 2,807 1,535 1,518 317 11,922 19,354
1998 945 3,311 1,201 1,732 576 4,085 11,850
1999 938 3,401 1,176 1,732 716 6,931 14,894
2000 1,033 3,196 1,080 1,592 659 2,665 10,225
2001 1,043 3,399 1,176 1,693 667 5,061 13,039
_ Note:
Includes General, Special Revenue and Capital Projects Funds.
113
Table II
CITY OF HOPKINS,MINNESOTA
GOVERNMENTAL FUND TYPES-REVENUES BY SOURCE
Years 1992 Through 2001 -
(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
1992 $ 5,384 $ 2,756 $ 865 $ 705 $ 226 $ 154 $ 10,090
1993 5,707 2,481 937 985 226 129 10,465
1994 5,536 2,984 612 992 264 114 10,502 -
1995 6,383 2,606 800 736 320 102 10,947
1996 6,130 3,018 797 932 352 83 11,312
1997 6,132 4,155 763 (1) 5,540 (2) 372 98 17,060 -
1998 7,026 2,424 608 (1) 5,090 (2) 337 134 15,618
1999 7,453 4,206 522 (1) 1,541 470 151 14,343
2000 7,998 3,719 745 (1) 914 428 148 13,952 -
2001 9,071 3,097 628 (1) 810 377 167 14,150
Note: -
Includes General, Special Revenue,Debt Service and Capital Projects Funds.
(1) Includes only investment earnings
(2) Includes Oaks of Mainstreet real estate sales. -
114
Table III
CITY OF HOPKINS,MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Years 1992 Through 2001
(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
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%
1999 4,421,906 4,336,971 98.1% 20,552 4,357,523 98.5%
2000 4,672,756 4,611,366 98.7% 44,602 4,655,968 99.6%
2001 5,012,361 4,980,059 99.4% 83,221 5,063,280 101.0%
(1)Tax levy is net of Homestead and Agricultural Credit Aid.
115
Table IV
CITY OF HOPKINS,MINNESOTA
TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY
Levy Years 1992 Through 2001 -
(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
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 -
1999 15,507 787,397 264 7,784 15,771 795,182 2.0
2000 17,559 877,055 261 7,703 17,820 884,758 2.0
2001 13,406 963,398 155 7,803 13,562 971,202 1.4 -
116
Table V
CITY OF HOPKINS,MINNESOTA
_ PROPERTY TAX RATES -
DIRECT AND OVERLAPPING GOVERNMENTS
Years 1992 Through 2001
(Unaudited)
Payable
Fiscal Metro
Year City School County Council Other 1 Total
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
1999 32.19 56.56 39.66 6.04 3.04 137.49
2000 31.13 44.22 37.62 5.82 2.31 121.74
2001 54.79 15.03 50.49 3.53 5.16 128.94
_ (1)The City is divided basically into Watershed Districts No. 1 and No. 3. The
difference in the tax capacity rates ranges from zero to less than 0.8%. In this
table, district No. 1 was used,as it is the higher rate. Also included in the "other"
column is the Vo-Tech School rate which is dropped after 1995. Beginning in
1996 the County Park tax rate is added.
117
CITY OF HOPKINS,MINNESOTA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Years 1992 Through 2001 —
(Unaudited)
Current Special Percentage of
Assessment Current Special Current Collected —
Fiscal Becoming Due Assessments During Fiscal
Period During Fiscal Period Collected Period
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 —
1999 569,282 530,137 93.1
2000 1,105,792 1,035,393 93.6
2001 1,113,328 1,078,741 96.9 —
118
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
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 6,931,540
9,733 73,870 146,916 14,550,745
33,701 111,264 87,383 13,513,832
66,121 79,732 98,743 12,920,307
119
CITY OF HOPKINS, MINNESOTA
RATIO OF NET BONDED DEBT
TO TAX CAPACITY VALUE AND NET BONDED DEBT PER CAPITA
Pay Years 1992 Through 2001
(Unaudited)
Tax Capacity
Value Gross Cash and
Population After Fiscal Bonded Investments
Year (1) Disparities Debt 2 on Hand/Escrowed
1992 16,534 $ 15,098,819 $ 15,258,443 $ 1,178,695
1993 16,534 14,147,542 15,622,343 (3) 1,302,870
1994 16,534 13,100,726 14,701,243 1,019,541
1995 16,534 12,556,761 14,605,143 932,467
1996 16,534 12,910,496 22,228,543 (4) 1,125,661
1997 16,665 13,194,123 23,418,543 (5) 1,617,274
1998 16,559 11,936,742 16,588,543 1,425,491
1999 16,887 11,749,307 21,533,543 1,625,660 —
2000 17,145 12,526,355 22,668,543 1,781,809
2001 17,145 13,451,356 25,062,696 4,660,378
(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 in 1998 _
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 in 1998
from proceeds of Oaks of Mainstreet real estate sales.
120
Table VII
Debt Payable Ratio of
From Delinquent Net Bonded Net
Enterprise and Deferred Net Debt to Bonded
and HRA Special Bonded Tax Capacity Debt per
Revenues Assessments Debt Value Capita
$ 3,014,900 $ 2,385,751 $ 8,679,097 56.88% 525
3,143,800 2,881,095 8,294,578 53.09% 502
2,992,700 3,160,866 7,528,136 51.21% 455
— 3,656,600 (b) 2,647,147 7,368,929 50.45% 446
3,290,000 (b) 2,267,262 7,955,620 (a) 35.79% 481
4,865,000 (b) 2,201,321 8,969,948 (a) 38.30% 538
4,705,000 (b) 2,328,409 8,129,643 49.01% 491
10,075,000 (b) 2,243,626 7,589,257 35.24% 449
11,855,000 (b) 1,968,660 7,063,074 31.16% 412
13,040,000 (b) 2,143,685 5,218,633 20.82% 304
(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.
121
CITY OF HOPKINS,MINNESOTA Table VIII
COMPUTATION OF LEGAL DEBT MARGIN —
December 31,2001
(Unaudited)
MARKET VALUE $ 971,202,200 * —
DEBT LIMIT 2% OF MARKET VALUE(Note A) $ 19,424,044
TOTAL BONDED DEBT $ 25,062,696
DEDUCTIONS (Note B):
Tax Increment Bonds $ 6,717,696 —
Revenue Bonds 6,740,000
Housing Improvement Bonds 6,300,000
Special Assessment Bonds 2,545,000 —
22,302,696
Amount Available in Debt Service Funds 4,727,313 —
Total Deductions 27,030,009
TOTAL DEBT APPLICABLE TO DEBT LIMIT 2,760,000 —
LEGAL DEBT MARGIN $ 16,664,044
Note(A):
M.S.S. Section 4753.53 (Limit on Net Debt)
"Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.75,no municipality —
...shall incur or be subject to net debt in excess of two percent of the market value of taxable property in
the municipality."
Note (B): —
M.S.S. Section 475.51 Definitions:
"Subdivision 4. "Net debt" means the amount remaining after deducting from its gross debt the amount
of current revenues which are applicable within the current fiscal year to the payment of any debt and —
the aggregate of the principal of the following:
(1)Obligations issued for improvements which are payable wholly or partly from the proceeds of special
assessments levied upon property specially benefited thereby...
(2)Warrants or orders having no definite or fixed maturity.
(3)Obligations payable wholly from the income from revenue producing conveniences.
(4)Obligations issued to create or maintain a permanent improvement revolving fund.
(5) Obligations issued for the acquisition,and betterment of public water work systems...or for any other —
public convenience from which a revenue is or may be derived.
(6)Amount of all money and the face value of all securities held as a debt service fund for the extinguish-
ment of obligations other than those deductible under this subdivision. —
(7)All other obligations which under the provisions of law authorizing their issuance are not to be included
in computing the net debt of the municipality.
"Valuation before effect of"fiscal disparity" legislation;Minnesota laws 1971, Chapter 24. See Table IV. —
122
Table IX
CITY OF HOPKINS,MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31,2001
(Unaudited)
Net General Percentage
Obligation Applicable City Share
Debt 1 to City of Debt
Direct Debt
City of Hopkins $ 6,553,587 100.00% $ 6,553,587
Overlapping Debt
Hennepin County 278,091,118 1.27 3,531,757
Independent School District#270(Hopkins) 38,396,470 15.83 6,078,161
Independent School District#283 53,602,955 0.46 246,574
Hennepin Suburban Park District 27,087,334 1.69 457,776
Metropolitan Council 141,032,000 1.15 1,621,868
Hennepin Regional RR Authority 50,000,000 1.27 635,000
Total Overlapping Debt 12,571,136
Total Direct and Overlapping Debt $ 19,124,723
Direct Overlapping Total
Debt Ratios Debt Debt Debt
Ratio of Debt Per Capita (17,145 Population) $382 $733 $1,115
Ratio of Debt to Tax Capacity Valuation
(after fiscal disparities)of$ 13,451,356 (2) 48.72% 93.46% 142.18%
Ratio of Debt to Estimated Market Valuation
of$ 971,202,200 0.67% 1.29% 1.97%
_ (1)Excludes Revenue and Special Assessment Bonds
(2)Tax Capacity Values are based on payable 2001 figures.
Source: County Auditor
123
Table X
CITY OF HOPKINS,MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Years 1992 Through 2001
(Unaudited) —
Percentage —
Total Total of Debt
Debt General to General
Year Principal Interest Service Expenditures(1) Expenditures —
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
1999 345,000 159,057 504,057 14,936,841 3.4 —
2000 345,000 180,332 525,332 10,225,789 5.1
2001 410,000 162,032 572,032 13,039,750 4.4
Note: Only debt that is considered applicable to the legal debt limit is included. All remaining debt is
paid through tax increments, enterprise funds or housing fees.
(1)Includes all governmental fund type expenditures except debt service.
124
Table XI
CITY OF HOPKINS,MINNESOTA
REVENUE BOND COVERAGE
WATER, SEWER AND STORM SEWER REVENUE BONDS
Years 1992 Through 2001
(Unaudited)
Net
Fiscal Gross Operating Revenue Debt Service Coverage
Year Revenue Expenses (1) Available Principal Interest Total Ratio
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
1999 643,303 84,280 559,023 140,000 98,750 238,750 2.34 to 1
_ 2000 661,776 123,082 538,694 205,000 162,992 367,992 1.47 to 1
2001 1,665,217 814,419 850,798 345,000 369,893 714,893 1.19 to 1
(1)Excludes depreciation and debt expense.
125
Table XII
CITY OF HOPKINS,MINNESOTA
DEMOGRAPHIC STATISTICS
Year 1992 Through 2001 —
(Unaudited)
(2) (3)
Fiscal (1) School %Unemployment —
Year Population Enrollment Rate*
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%
1999 16,887 8,367 2.8%
2000 17,145 8,227 2.5% —
2001 17,145 8,137 3.2%
Sources:
(1)Metropolitan Council
(2) School districts within Hopkins —
(3)Minnesota Department of Labor and Industry
*Hennepin County —
126
Table XIII
CITY OF HOPKINS,MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
Years 1992 Through 2001
(Amounts expressed in thousands)
(Unaudited)
(1) (1)
Commercial Residential (2)
Construction Construction Property Value
Fiscal Number of
Year Value Units Value Commercial Residential Nontaxable
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
1999 32,791 493 10,037 204,988 582,540 85,491
2000 6,818 227 10,234 236,557 640,831 85,491
2001 3,855 520 13,215 251,089 775,236 85,491
Sources:
(1)City Community Development Department
(2)City Assessor's Office
127
Table XIV
CITY OF HOPKINS,MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 2001 _
(Unaudited)
Amount of
Percentage Estimated
Tax of Total Tax Tax City —
Taxpayer Type of Business Capacity Capacity Receives
1. Super Valu Grocery Warehouses 1,078,398 8.04% $ 426,398
2. St. Therese Apartments 317,034 2.36% 170,691 —
3. Duke Realty Office/Warehouses 323,650 2.41% 127,971
4. Ramsgate Apartments Apartments 236,684 1.77% 127,430
5. Westside Village Apartments 200,142 1.49% 107,756
6. Greenfield(Phase I) Apartments 199,080 1.48% 107,184
7. Greenfield(Phase Il) Apartments 177,210 1.32% 95,409
8. Auburn North Townhouses 167,040 1.25% 89,934 —
9. Rosewood West Apartments 133,686 1.00% 71,976
10. Alliant Techsystems Office/Warehouse 173,592 1.29% 68,638
11. Creekwood Estates Apartments 120,819 0.90% 65,048 —
12. Knollwood Towers West Apartments 113,958 0.85% 61,354
13. Edco Products,Inc. Office/Warehouse 129,894 0.97% 51,360
14. Gateway Foods Office/Warehouse 117,170 0.87% 46,329 --
15. Christian Salvesen Warehouse 107,250 0.80% 42,406
16. Thermotech Office/Warehouse 103,710 0.77% 41,006
17. Buffalo Associates Bank/Office 96,390 0.72% 38,112 —
18. Oak Ridge Country Club Golf Course 77,850 0.58% 30,781
19. Reuter,Inc. Office/Warehouse 61,650 0.46% 24,376
20. Robert J.Lawrence Retail 51,782 0.39% 20,474 —
(Knox Lumber)
Total 3,986,989 29.74% $ 1,814,633
Total City 2001/2002 tax capacity= 13,406,775 100.00%
Notes: _
1)Tax capacity is a percentage of total market value. For taxes payable in 2002 these class rates are
1.8% for apartments and 1.5% of first$150,000 with balance at 2.0%for commercial/industrial properties.
2)The City of Hopkins receives approximately 40% of the total estimated tax for 2002,not including —
fiscal disparities and tax increment adjustments.
3)The estimated tax is based on the tax rates for payable 2002.
128
Table XV
CITY OF HOPKINS,MINNESOTA
MISCELLANEOUS STATISTICAL FACTS
December 31, 2001
(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:
1992 378
_ 1993 304
1994 457
1995 390
1996 441
1997 886
1998 463
1999 587
2000 443
2001 498
_ Estimated Cost:
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
1999 42,828,312
2000 17,051,981
2001 17,070,262
129
Table XV
CITY OF HOPKINS,MINNESOTA
MISCELLANEOUS STATISTICAL FACTS -CONTINUED
December 31, 2001 —
(Unaudited)
Fire Protection:
Number of Stations 1
Number of Employees -Volunteer 35
Police Protection:
Number of Stations 1
Number of Employees 39 —
Parks:
City Parks 12 —
Playgrounds 1
Skating Rinks 18
Employees: —
Regular 112
Part Time 4
Elections:
Registered Voters-last general election 9,101
Number of votes cast last general election 2,390 _
Election day registrations 155
Percentage of registered voters voting 26%
Population: —
1920 3,055
1930 3,834
1940 4,100 —
1950 7,595
1960 11,380
1970(census) 13,395 _
1980(census) 15,336
1991 (census) 16,534
1992 16,534
1993 16,534 —
1994 16,534
1995 16,534
1996 16,534 —
1997 16,665
1998 16,559
1999 16,887 _
2000 17,145
2001 17,145
130 —