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2000 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 , 2000 DEPARTMENT OF FINANCE Lori Yager, Finance Director MEMBER OF GOVERNMENT FINANCE OFFICERS' ASSOCIATION OF THE UNITED STATES AND CANADA TELEPHONE: (952) 935-8474 .. Y THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS Exhibit Page I. INTRODUCTORY SECTION City Officials 2 Administrative Organization Chart 3 Letter of Transmittal from the City Manager and Finance Director 5 Certificate of Achievement for Excellence in Financial Reporting 17 Il. FINANCIAL SECTION Independent Auditors' Report 19 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, 2000 _ Exhibit Pav-e B. Combining Individual Funds and Account Groups Statements and Schedules General Fund Balance Sheet B 48 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-1 49 Schedule of Revenues - Budget and Actual B-2 50 Schedule of Expenditures - Budget and Actual B-3 51 _ 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 Debt Service Funds Combining Balance Sheet D 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance D-1 86 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 Exhibit Page Capital Projects Funds Combining Balance Sheet E 89 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance E-1 90 Enterprise Funds Combining Balance Sheet F 92 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings F-1 94 Combining Statement of Cash Flows F-2 96 Internal Service Fund Balance Sheet G 99 Statement of Revenues, Expenses, and Changes in Retained Earnings G-1 100 Statement of Cash Flows G-2 101 Agency Fund Combining Statement of Changes in Assets and Liabilities H 103 Account Groups Schedule of General Fixed Assets 1 105 Schedule of General Fixed Assets by Function and Activity 1-1 106 — Schedule of Changes in General Fixed Assets by Function and Activity 1-2 107 Statement of General Long-Term Debt 1 108 Schedule Page SECTION IIC Supplemental Financial Schedules Schedule of Bonds Payable 1 110 Schedule of Debt Service Requirements -All Funds 2 122 Schedule of Funding Available and Funds Required _ for Debt Service 3 123 Schedule of Insurance in Force 4 124 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 _ Table Pate III. STATISTICAL SECTION Governmental Fund Types - Expenditures by Function I 127 _ Governmental Fund Types - Revenues by Source 11 128 Property Tax Levies and Collections III 129 Assessed Value/Tax Capacity Value and Market Value _ of All Taxable Property IV 130 Property Tax Rates - Direct and Overlapping Governments V 131 _ Special Assessments Billings and Collections VI 132 Ratio of Net Bonded Debt to Assessed Value/Tax Capacity Value and Net Bonded Debt Per Capita VII 134 Computation of Legal Debt Margin VIII 136 Computation of Direct and Overlapping Debt _ Including Debt Ratios IX 137 Ratio of Annual Debt Service Expenditures for General _ Bonded Debt to Total General Expenditures X 138 Revenue Bond Coverage - Water, Sewer and Storm Sewer _ Revenue Bonds XI 139 Demographic Statistics XII 140 Construction and Property Value XIII 141 Principal Taxpayers XIV 142 Miscellaneous Statistical Facts XV 143 NOUDIS A1IOIDAGMI1N1 I NOIIDIS INWI21 IVIDNVNIA lbnNNV 3nISNIH32J(IW0D VJLOSINNIW 'SNI)IdOH AO AID THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 CITY OFFICIALS December 31, 2000 — CITY COUNCIL Term — Expires Eugene Maxwell, Mayor 12-31-01 — Frances Hesch Councilmember 12-31-01 Karen Jensen Councilmember 12-31-03 Diane Johnson Councilmember 12-31-03 Rick Brausen Councilmember 12-31-01 CITY MANAGER Steven C. Mielke FINANCE DIRECTOR _ Lori Yager 2 CITIZENS Boards & CITY Commissions COUNCIL City Attorney Administrative City Manager MIS Services City of Minnetonka i i i W Community Planning &Services Finance Economic Fire Police Public Works Recreation Development • Assessing Economic Fire & Medical a Patrol Building Maint. & • City Clerk Accounting Development Response 0 Investigation Equipment • Elections Payroll Housing 0 Prevention 0 Communication Services • Inspections Utility Billing Planning & Emergency 0 Crime Engineering • Reception Zoning Preparedness Prevention Parks & Forestry Public Housing Street/Traffic/ Refuse • Water& Sewer • Facilities Mgmt. Activity Center Center for the Arts Depot Pavilion/Ice Arena (This page intentionally left blank) 4 '— City of 9lopkins 1010 First Street South •Hopkins,MJF 55343-7573 • Phone:952-935-8474 • Fax952-935-1834 Web address:www.hopkinsmn.com May 15, 2001 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, 2000 is hereby submitted. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, supporting schedules, statistical tables, etc., rests with the City. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. The organization, form and contents of this report were prepared in accordance with standards prescribed by the Governmental Accounting Standards Board (GASB), the Government Finance Officers Association of the United States and Canada, the American Institute of Certified Public Accountants, the State Auditor's Office— State of Minnesota and the City Charter. The CAFR is presented in three sections: introductory, financial and statistical. The introductory section includes a list of principal officials, the organizational chart, the City Manager's letter and this transmittal letter. The financial section includes the independent auditors' report on the financial statements and schedules, the general-purpose financial statements and the combining and individual funds and account group financial statements and schedules. The statistical section contains selected financial and demographic information pertinent to the City and is generally presented on a multiyear basis. Reporting Entity Components The report includes all funds and account groups of the City, including the city's Housing and Redevelopment Authority (HRA). The City provides a full range of services including general government, public safety, public works, community development and parks and recreation. In addition to general municipal activities, the City provides water, sewer and refuse services. Low _ income rental housing is a function of the HRA. The Hopkins Fire Relief Association has not met the established criteria for inclusion in the reporting entity, and accordingly is excluded from this report. 5 Partnering with the Community to Enhance the Quality of Life •Inspire•Pducate•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 57% single family residential and apartments, and 43% 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 2000 was $7.7 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 2000 include the following: Activity Valuation _ Commercial Additions/Alterations: Chapel View $ 750,000 _ SuperValu addition $ 3,760,000 Stiele and Bakken Business Redevelopment $ 9,710,000 Excelsior Boulevard Reconstruction $ 670,000 Parkside Residential Project $ 8,000,000 DeCoy's Restaurant $ 225,000 Water Tower Painting $ 550,000 Mason Property Downtown $ 300,000 Efforts are being made for continued development and growth for 2001 and beyond. It is anticipated that approximately $104,000,000 of construction will also take place in the City of Hopkins during 2001/2002. 6 Some anticipated projects during this period include the following: Project Valuation Nine Mile Cove $10,000,000 Medica $70,000,000 Eastside Redevelopment $10,000,000 Excelsior Boulevard Reconstruction $ 6,000,000 Walgreens $ 2,000,000 The City of Hopkins has developed a strategic plan for economic development. As a part of this _ plan, the City of Hopkins intends to pursue various development and redevelopment efforts throughout the City. Several projects are anticipated. In 2001, projects to be constructed include the redevelopment of the Hopkins House Hotel, the redevelopment of Eastside downtown, phase II of the Nine Mile Cove housing project, redevelopment of a restaurant and downtown parking improvements. 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 five years, major improvements will continue to be made to County Road 3 along its entire length in Hopkins. The first phase of improvements occurred in 1998 between _ Shady Oak Road and 11 th avenue south. The second phase occurred in 1999 between Highway 169 to 11`h Avenue South. The third phase will occur in the year 2001 and 2002 between Highway 169 and Blake Road. The final phase runs from Blake Road to Meadowbroke Road and should occur in 2002 and 2003. Major Initiatives For the Year For 2000, 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 in 2000, which involved 45 weeks of citizen, council member and _ employee participation. The academy informed citizens of different aspects of city services. The activity was a huge success and will be continued either annually or bi-annually. _ 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 2000, at a cost of approximately $2,293,000. The projects included replacing infrastructure, roadway surface, curb and gutters and alley reconstruction. The sump pump inspection program was continued into 2000 at a cost of approximately $23,000. Storm Sewer reconstruction projects — totaling $164,000, was done in 2000. The city constructed a Skate Park with donations and park funds. The Skate Park is considered a huge success and will continue to operate into the future. The City of Hopkins upgraded 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 in 2001, 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 2001-2003. 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 has identified a need to repaint a water tower in the city and reconstruct a lift station. 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 under budget by $32,193. This was a result of a change in accounting practice in the _ allocation of interest revenues. This shortfall of interest revenues will continue to be eliminated with the adjustment of budgeted interest revenues in the future. 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 — 01998 Fines ■1999 Intergov't 2000 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 2000 (including the fiscal disparities tax capacity contribution and distribution) was $12,526,355. This 2000 tax base reflects a decrease of _ $976,467 over 1999 due to a further compression of the tax classification rates implemented by the state legislature. The total tax capacity value figure is also net of the tax capacity pledged to tax increment projects, which amounted to $1,670,794, which is 10.6% of the gross tax capacity base. — Current property tax collections were 98.7% of the tax levy in the year 2000. Property taxes make up 58% of the general fund revenue sources. The next largest source is intergovernmental revenues at 29%. The intergovernmental revenues have remained constant over the last three years which has prompted a need for increases in property taxes. General Fund expenditures and transfers totaled $7,186,829 in 2000, an overall increase of — approximately 1.2% from the comparable figure for 1999. This slight increase over 1999 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 $259,378. The general government budget within the general fund was increased by $203,000 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 -2000, 1999 and 1998 $3,500 ; $3,000 $2,500 $2,000 �2000 $1,500-1 ■1999 $1,000 1998 $500 $0 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 Budge 1995 6,400,000 2,906,149 45.4 1996 6,592,000 2,870,206 43.5 1997 6,791,100 3,013,865 44.4 1998 6,969,680 2,940,139 42.2 1999 7,158,664 2,834,758 39.6 2000 7,418,723 2,877,512 38.8 The City's financial position remained strong during 2000. Cash and investment balances at year- end totaled $20,391,939, 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 2000 as well as previous years. 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 $8,451,174, 11 which is 276% of the expenditures and other financing uses incurred in 2000. 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 $3,922,727 in fund balance, which is to be spent in 2001 - 2003 primarily on the County Road 3 project. The Enterprise Funds have a working capital balance in excess of$3,500,000, which will provide funds for the upcoming — water, sewer and street projects. The Equipment Replacement - Internal Service Fund has a working capital balance in excess of $1,400,000, which will provide funds for future capital purchases. — Special Revenue Funds State Chemical Assessment Fund This fund is established to record the activity of the Chemical Assessment Team. The source of revenue for this fund is a State Chemical Assessment Grant which fully reimburses the City for its' expenditures relating to chemical assessment team expense. Economic Development The development of the City is enhanced through this fund. Revenues received are designated for development projects that are in line with strategic plans of the council and the community for the _ City of Hopkins. The fund balance is currently $3,789,612. Real Estate Purchases& Sales The proceeds of this fund are to be used to improve city buildings. The fund balance is currently $48,624. 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 _ $14,631. 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 $2,727,942 and is designated 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 Housing Rehab 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 $1,317,588. Parking This fund records and accounts for parking fees and operations, assessments charged to users and maintenance of the parking facilities. The fund balance is currently $358,149. Section 8 Housing This fund administers the HUD Section 8 rental assistance program. Current fund balance is $18,068. 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 $327,265. 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, 2000, totaled $22,668,543 of which $7,223,543 are redevelopment issues - the last bond matures August 1, 2016; $1,615,000 are park and recreational bonds - due August 1, 2011; $5,475,000 are revenue bonds - due August 1, 2015; $1,975,000 are special assessment bonds - due February 1, 2010 and $6,380,000 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, 2000, only $1,615,000 of general obligation debt was applicable to the legal debt limit of$17,695,160. Capital Project 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. The designated fund balance is $3,796,820, which is primarily for the County Road 3- construction project and miscellaneous road projects. _ 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 $1,710,650. This fund issued bonds in the amount of$2,060,000 in 2000 to pay for future water — fund projects. The fund experienced net income this year of$207,484. The water utility rate was increased in 2000 to help pay the new debt issued for 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 $1,108,181, a decrease of$345,000 over 1999. Net income this year is $324,778. — 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 and recycling rates have remained stable since 1991 and no rate increase is planned for the near future. This fund realized a net income of$9,634. The working capital balance for this fund is $592,848, an increase of$12,000 over 1999. — 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 most recently in 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 .nany 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 2000 the working capital balance is still positive at $70,160. The net income in the Storm Sewer fund is $230,394. 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 do to depreciation of the building and equipment. This year the net loss is $(30,540). The working capital balance for this fund is currently $73,638, a large increase over 1999 of$23,131. Art Center — This fund was established in 1997 to record operating revenues and expenditures for the newly constructed art center facility. It has been in operation for three full years. The working _ capital balance for the fund is a negative ($115,269). This is a substantial decrease of($178,562) over the 1999 working capital balance. The decreased working capital is a combination of operating losses and the continued payback of a loan from the general fund. The Art Center operation is _ 14 demonstrating 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 will need to determine how to support this fund into the future. Skate Park — This fund was established in 2000 to record operating revenues and expenditures for the newly constructed skate park. This year was the first year of operations and it appears to be very — successful. Net income was $49,522 but included a transfer from the Park fund for construction of the skate park. Working capital balance is $22,179 and is anticipated to grow into the future. 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 80%. During 2000, the City of — Hopkins earned $1,100,505 as compared to 1999 earnings of $725,216. The higher earnings are attributed to the combined issuance of debt and a healthy economy in 2000. At year-end, the City's cash and investment resources (including restricted cash) were held as follows: Cost — Cash 1.2% $ 253,460 Money Market .4% 100,000 Commercial Paper 60.9% 12,424,461 U.S. Government Agency Securities 37.5% 7,614,018 Total Investments and Deposits $ 20,391,939 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. 15 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, 2000, the general fixed assets of the City amounted to $25,603,584 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, 1999. 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. 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, `( f Steven C. Mielke Lori K. Yager — City Manager Finance Director 16 Certificate of Achievement for Excellence _ in Financial Reporting Presented to City of Hopkins, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1999 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. cE oFFi�� e� arTN 04� h NRFOSTATFS 9 W AND y i CANADA irsident CORPORATgN aF244 �c`Y CNICO O` 0, Executive Director 17 NOII:AS IVI:)NVN IA II NOUDIS INOdRl IVIDNVNIA IdflNNV 3AISNIHRIdNOD - VIOSINNIW 'SNDIdOH JO Alli 4200 Wells Fargo Center _ 90 South Seventh Street Minneapolis,MN 55402 Independent Auditors' Report The Honorable Mayor and Members of the City Council City of Hopkins,MinneEota 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, 2000, 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, 2000, and the results of its operations and cash flows of its proprietary 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 and supplementary information listed 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. 0>mc, LrP May 15, 2001 19 KPG LLP KPMG LLP a U.S.limited liability Partnership,Is a -member of KPMG International,a Swiss association. (This page intentionally left blank) �. w w w 20 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT SECTION IIA GENERAL PURPOSE FINANCIAL STATEMENTS _ The Combined Statements are intended to provide an overview and broad perspective of the city's financial position and operations. These general purpose financial statements are at a summary level by fund types and account groups and include aggregate data to analyze current operations and to determine compliance with legal and budgetary limitations and to assist in financial planning. It is emphasized that the total figures contained in these statements are a combination of unlike purpose groups. The total columns (labeled "Memorandum Only") are not comparable to a consolidation because the same basis of accounting is not used by all funds and interfund transactions and balances are not eliminated. The following combined statements and schedules are presented: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types 21 CITY OF HOPKINS,MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS December 31,2000 With Comparative Totals for December 31, 1999 Governmental Fund Types Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Projects Assets: Cash,cash equivalents, and investments $ 3,186,761 $ 5,532,791 $ 1,781,809 $ 3,462,349 Taxes receivable 131,353 - 8,863 - Special assessments receivable - - 11,673,414 1,968,660 Accounts receivable 49,077 59,461 - 62,294 Rehabilitation loans receivable - 667,644 - - Accrued interest receivable 53,462 77,897 25,612 43,872 Due from other funds 12,000 2,704,391 - 419,435 Due from other governments 39,300 32,016 - 321,819 Inventory 79,692 Prepaid items Other assets Restricted cash and investments - 364,000 - - Advance to other funds 572,868 300,000 - - Long term loans receivable - 2,110,630 - - Property and equipment,net Other debits: Amount available in debt service funds Amount available in special revenue funds restricted cash and investments Amount to be provided for retirement of general long-term debt - - - Total Assets and Other Debits $ 4,124,513 $ 11,848,830 $ 13,489,698 $ 6,278,429 LIABILITIES.EQUITY AND OTHER CREDITS Liabilities: Accounts payable $ 255,800 $ 426,028 $ - $ 106,454 Accrued interest payable - Compensated absences payable 534,977 40,826 - - Due to other funds 26,037 2,716,391 - - Due to other governments - 250 - - Deferred revenue 173,182 214,161 11,670,538 2,249,248 Deposits payable 7,890 - - Advance from other funds - - Long-term debt - - Total Liabilities 997,886 3,397,656 11,670,538 2,355,702 Equity and Other Credits: Contributed capital - - - Investment in general fixed assets - - - - Retained earnings: Reserved - - - - Unreserved - - - - Fund balances: Reserved 652,560 3,504,264 1,819,160 - Unreserved Designated 2,446,396 105,403 - 3,796,820 Undesignated 27,671 4,841,507 - 125,907 Total Equity and Other Credits 3,126,627 8,451,174 1,819,160 3,922,727 Total Liabilities,Equity and Other Credits $ 4,124,513 $ 11,848,830 $ 13,489,698 $ 6,278,429 See accompanying Notes to Financial Statements. - 22 A Proprietary Fudiciary Fund Type Fund Type Account Groups General General Totals Internal Trust and Fixed Long-Term (Memorandum Only) Enterprise Service Agency Assets Debt 2000 1999 $ 4,161,039 $ 1,478,190 $ 175,000 $ - $ - $ 19,777,939 $ 16,512,797 - 140,216 160,819 - 13,642,074 14,569,054 380,675 754 - - - 552,261 733,926 - 667,644 789,585 64,698 13,718 - - - 279,259 272,982 - 3,135,826 4,534,880 5,498 - - - - 398,633 324,842 24,693 - - - - 104,385 99,675 6,295 - - - - 6,295 10,939 26,421 250,000 - - - - 614,000 614,000 _ - - 872,868 894,347 - 2,110,630 2,150,000 20,426,031 1,736,634 - 25,603,584 - 47,766,249 45,276,987 _ - 1,819,160 1,819,160 1,625,660 - 15,374,383 15,374,383 16,287,883 $ 25,318,929 $ 3,229,296 $ 175,000 $ 25,603,584 $ 17,193,543 $ 107,261,822 $ 104,884,797 $ 361,711 $ 99 $ - $ - $ - $ 1,150,092 $ 897,757 44,808 - - - - 44,808 44,808 125,628 - - - - 701,431 649,464 393,398 - - - - 3,135,826 4,534,880 24,257 - 175,000 - - 199,507 40,000 151,474 - - - - 14,458,603 15,088,455 - - 7,890 7,470 872,868 - - - - 872,868 894,347 5,475,000 - - - 17,193,543 22,668,543 21,533,543 7,449,144 99 175,000 - 17,193,543 43,239,568 43,690,724 6,378,327 2,687,227 - - - 9,065,554 9,614,689 - 25,603,584 - 25,603,584 24,866,285 250,000 - - - - 250,000 250,000 11,241,458 541,970 - - - 11,783,428 11,126,225 - - 5,975,984 6,202,029 - - 6,348,619 5,786,950 - - 4,995,085 3,347,895 17,869,785 3,229,197 - 25,603,584 - 64,022,254 61,194,073 $ 25,318,929 $ 3,229,296 $ 175,000 $ 25,603,584 $ 17,193,543 $ 107,261,822 $ 104,884,797 23 CITY OF HOPKINS,MINNESOTA - COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES - Year Ended December 31,2000 With Comparative Totals for Year Ended December 31, 1999 Governmental Fund Types Special Debt Capital General Revenue Service Projects - Revenues: Property taxes $ 4,327,792 $ 2,232,616 $ 328,176 $ Special assessments - 22,342 657,377 429,866 - Intergovernmental 2,134,678 1,035,326 - 549,259 Licenses and permits 428,435 Franchise fee - 126,587 - Fines and forfeitures 111,221 37,036 - - Charges for services 218,832 318,143 - 139,315 Investment earnings 165,005 297,164 53,569 228,915 Other 49,981 60,898 - - - Total Revenues 7,435,944 4,130,112 1,039,122 1,347,355 Expenditures: Current: General government 828,027 205,174 - - Public safety 3,158,178 38,046 - - - Community development 670,252 409,354 - - Public works 1,500,689 90,987 - - Recreation 460,528 198,439 - - _ Other 1,318 - - Capital outlay 550,894 1,457,492 - 656,411 Debt service: Principal payments - - 720,000 - - Interest,fiscal charges and issuance cost - - 995,622 - Total Operating Expenditures 7,169,886 2,399,492 1,715,622 656,411 Excess(deficiency)of revenues over expenditures 266,058 1,730,620 (676,500) 690,944 Other Financing Sources(Uses): - Proceeds from bond issuance Operating transfers in - 66,942 870,000 - Operating transfers out (16,943) (656,999) - (291,308) _ Total Other Financing Sources(Uses) (16,943) (590,057) 870,000 (291,308) Excess of revenues and other financing sources over expenditures and other financing uses 249,115 1,140,563 193,500 399,636 - Fund Balances-January 1 2,877,512 7,310,611 1,625,660 3,523,091 Fund Balances-December 31 $ 3,126,627 $ 8,451,174 $ 1,819,160 $ 3,922,727 See accompanying Notes to Financial Statements. 24 A-1 Totals (Memorandum Only) 2000 1999 $ 6,888,584 $ 6,578,543 1,109,585 874,243 3,719,263 4,206,190 428,435 469,564 126,587 113,455 148,257 151,295 676,290 1,282,886 744,653 522,442 110,879 144,614 13,952,533 14,343,232 1,033,201 938,264 3,196,224 3,401,233 1,079,606 1,175,801 1,591,676 1,732,291 658,967 715,657 1,318 23,874 2,664,797 6,930,760 720,000 1,340,000 995,622 731,958 11,941,411 16,989,838 2,011,122 (2,646,606) 4,880,000 936,942 1,930,212 (965,250) (1,754,994) (28,308) 5,055,218 1,982,814 2,408,612 15,3 36,874 12,928,262 $ 17,319,688 $ 15,336,874 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, 2000 _ General Fund _ Variance-- favorable Budget Actual (unfavorable) Revenues: Property taxes $ 4,364,756 $ 4,327,792 $ (36,964) Special Assessments Licenses and permits 357,400 428,435 71,035 Intergovernmental 2,119,288 2,134,678 15,390 Franchise fee Fines and forfeitures 100,000 111,221 11,221 Charges for services 146,748 218,832 72,084 Investment earnings 297,089 165,005 (132,084) Other 82,856 49,981 (32,875) Total Revenues 7,468,137 7,435,944 (32,193) Expenditures: General government 851,136 828,027 23,109 Public safety 3,200,568 3,158,178 42,390 Community development 705,771 670,252 35,519 Public works 1,494,169 1,500,689 (6,520) Recreation 484,467 460,528 23,939 Other 40,395 1,318 39,077 Capital outlay 652,758 550,894 101,864 Total Expenditures 7,429,264 7,169,886 259,378 Excess of revenues over expenditures 38,873 266,058 227,185 Other Financing Sources(Uses): - Proceeds from bond issue Operating transfers in 30,586 - (30,586) Operating transfers out (18,859) (16,943) 1,916 Total Other Financing Sources(Uses) 11,727 (16,943) (28,670) Excess of revenues and other financing sources over - expenditures and other financing uses 50,600 249,115 198,515 Fund Balances-January 1 2,877,512 2,877,512 - Fund Balances- December 31 $ 2,928,112 $ 3,126,627 $ 198,515 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) $ 2,024,208 $ 2,197,536 $ 173,328 $ 6,388,964 $ 6,525,328 $ 136,364 - 22,342 22,342 - 22,342 22,342 357,400 428,435 71,035 1,006,913 1,020,695 13,782 3,126,201 3,155,373 29,172 105,000 126,587 21,587 105,000 126,587 21,587 24,000 37,036 13,036 124,000 148,257 24,257 267,113 279,371 12,258 413,861 498,203 84,342 178,570 295,738 117,168 475,659 460,743 (14,916) 22,100 37,168 15,068 104,956 87,149 (17,807) 3,627,904 4,016,473 388,569 11,096,041 11,452,417 356,376 204,188 205,174 (986) 1,055,324 1,033,201 22,123 55,000 38,046 16,954 3,255,568 3,196,224 59,344 383,413 341,788 41,625 1,089,184 1,012,040 77,144 119,885 90,987 28,898 1,614,054 1,591,676 22,378 177,960 198,439 (20,479) 662,427 658,967 3,460 - 40,395 1,318 39,077 1,399,307 1,453,633 (54,326) 2,052,065 2,004,527 47,538 2,339,753 2,328,067 11,686 9,769,017 9,497,953 271,064 - 1,288,151 1,688,406 400,255 1,327,024 1,954,464 627,440 11,359 66,942 55,583 41,945 66,942 24,997 (611,600) (607,000) 4,600 (630,459) (623,943) 6,516 (600,241) (540,058) 60,183 (588,514) (557,001) 31,513 687,910 1,148,348 460,438 738,510 1,397,463 658,953 7,418,641 7,418,641 - 10,296,153 10,296,153 - $ 8,106,551 $ 8,566,989 $ 460,438 $ 11,034,663 $ 11,693,616 $ 658,953 27 CITY OF HOPKINS,MINNESOTA A-3 COMBINED STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES Year Ended December 31,2000 With Comparative Totals for Year Ended December 31, 1999 Totals _ Internal (Memorandum Only) Enterprise Service 2000 1999 Operating revenues: _ Charges for services $ 4,408,036 $ 487,945 $ 4,895,981 $ 4,651,834 Other 43,655 - 43,655 65,172 Total Operating Revenues 4,451,691 487,945 4,939,636 4,717,006 _ Operating expenses(excluding depreciation): Salaries and employee benefits 1,140,275 - 1,140,275 1,031,549 Materials,supplies and services 1,639,881 19,996 1,659,877 1,433,375 Disposal costs 835,835 - 835,835 876,657 Total Operating Expenses 3,615,991 19,996 3,635,987 3,341,581 Operating income before depreciation expense 835,700 467,949 1,303,649 1,375,425 Depreciation expense 702,329 359,401 1,061,730 936,668 Operating income 133,371 108,548 241,919 438,757 Nonoperating revenue(expense): Investment earnings 292,351 63,501 355,852 202,774 Interest/fiscal agent expense (186,841) - (186,841) (122,662) _ Intergovernmental grants 172,672 - 172,672 37,687 Bond issuance expense (41,375) - (41,375) (40,815) Other 44,068 42,600 86,668 16,427 Total nonoperating revenues(expenses) 280,875 106,101 386,976 93,411 Income before other financing sources(uses) 414,246 214,649 628,895 532,168 Other financing sources(uses): Operating transfers from another fund 28,308 - 28,308 2,500 Operating transfers to another fund - - - (177,718) Total other financing sources(uses) 28,308 - 28,308 (175,218) Net income 442,554 214,649 657,203 356,950 Fund equity: Retained earnings-January 1 11,048,904 327,321 11,376,225 11,019,275 _ Retained earnings-December 31 $ 11,491,458 $ 541,970 $ 12,033,428 $ 11,376,225 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, 2000 With Comparative Totals for Year Ended December 31, 1999 Totals Internal (Memorandum Only) Enterprise Service 2000 1999 Cash Flows from Operating Activities: Operating income $ 133,371 $ 108,548 $ 241,919 $ 438,757 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 702,329 359,401 1,061,730 936,668 (Increase)decrease in: Accounts and accrued interest receivable 127,654 9,271 136,925 (163,746) Due from other funds - - - 530,000 Due from other governments 9,887 - 9,887 24,089 Inventory 70 - 70 204 Prepaid expense (96) - (96) (76) Due from Metropolitan Waste Control Commission 26,421 - 26,421 25,382 Accounts,compensated absences and accrued interest payable 222,956 (2,262) 220,694 17,824 Due to other funds 194,201 - 194,201 (527,380) Due to other governments (460) - (460) (53) Deferred revenue 24,073 - 24,073 25,600 Other - - - - Cash Provided by Operating Activities 1,440,406 474,958 1,915,364 1,307,269 Cash Flows from Noncapital Financing Activities: Intergovernmental grants 172,672 - 172,672 37,687 Other contributions 4,326 - 4,326 - Operating transfer in 28,308 - 28,308 2,500 Operating transfer out - - - (177,718) Cash Provided By(Used in)Noncapital Financing Activities 205,306 - 205,306 (137,531) Cash Flows from Capital and Related Financing Activities: _ Purchases of property and equipment (2,815,836) (546,993) (3,362,829) (1,170,450) Proceeus from sales of property and equipment 39,742 42,600 82,342 16,427 Proceeds from issuance of bonds 2,060,000 - 2,060,000 1,504,185 Interest and other payments (228,216) - (228,216) (122,662) Bond payments (205,000) - (205,000) (140,000) Cash Provided By(Used in)Capital and Related Financing Activities (1,149,310) (504,393) (1,653,703) 87,500 Cash Provided by Investing Activities- interest received 292,351 63,501 355,852 202,774 _ Increase in Cash and Cash Equivalents 788,753 34,066 822,819 1,460,012 Cash and Cash Equivalents-January 1 3,622,286 1,444,124 5,066,410 3,606,398 Cash and Cash Equivalents-December 31 $ 4,411,039 $ 1,478,190 $ 5,889,229 $ 5,066,410 Cash and Cash Equivalents Components: Cash and Cash Equivalents 4,161,039 1,478,190 5,639,229 4,816,410 Restricted Cash and Cash Equivalents 250,000 - 250,000 250,000 Total Cash and Cash Equivalents $ 4,411,039 $ 1,478,190 $ 5,889,229 $ 5,066,410 See accompanying Notes to Financial Statements 29 City of Hopkins, Minnesota — NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31,2000 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, 2000 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. C. BASIS OF ACCOUNTING The accounting and reporting treatment applied to a fund is determined by its measurement focus. Governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Reported fund balance is considered a measure of"available spendable resources." Governmental fund operating statements represent increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses)in net current assets. Proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities, associated with their activity are included on their balance sheets. Their reported fund equity is segregated into contributed capital and retained -' earnings components. Proprietary fund type operating statements present increases (i.e., revenues) and decreases (i.e., expenses)in net total assets. Governmental and fiduciary funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible with the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include property taxes (excluding delinquent taxes received over sixty days after year-end), special assessments, intergovernmental revenues, charges for services, and interest on investments. Major revenues that are not susceptible to accrual include fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred,except for principal and interest on general long-term debt which is recognized when due. Proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized when earned, and expenses are recorded at the time the liabilities are incurred. Unbilled utility service receivables are recorded at year end. The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them. In — subsequent periods,when all revenue recognition criteria are met,the liability for deferred revenue is removed and revenue is recognized. - 31 City of Hopkins, Minnesota _ NOTES TO FINANCIAL STATEMENTS-CONTINUED December 31, 2000 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 2000. The effect of the supplemental amendments are as follows: Original Budget Budget adjustments Final Budget General Fund $7,418,723 $ 29,400 $7,448,123 Economic Development $ 115,604 $ 733,255 $ 848,859 _ Para-Transit $ 74,159 $ 25,000 $ 99,159 Housing Rehab $ 95,968 $ 207,646 $ 303,614 Cable TV $ 118,694 $ 3,799 $ 122,493 Tax Increment 1-1 $ 352,750 $ 8,000 $ 360,750. Tax Increment 2-1 $ 532,778 $ 22,000 $ 554,778 Tax Increment 2-7 $ 60,007 $ 3,500 $ 63,507 Tax Increment 2-9 $ 34,000 $ 23,000 $ 57,000 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,Tax Increment 2.11 and the 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 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. 32 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31, 2000 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 r 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. 1. RESTRICTED ASSETS Certain proceeds of enterprise fund revenue bonds and special revenue fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants or developer agreements. J. FIXED ASSETS Fixed assets used in governmental fund type operations (general fixed assets) are recorded at historical cost and accounted for in the General Fixed Assets Account Group. Public domain("infrastructure")general fixed assets, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. — Fixed assets used in proprietary funds are recorded at historical cost and accounted for in the enterprise funds. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. 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 31,2000 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-external transactions are accounted for as revenues and expenditures. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. _ 34 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31,2000 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 a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal _ property taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County provides tax settlements to cities and other local governments three times a year, on or before January 25, July 6 and November 30. Property taxes are accrued and recognized as revenue for collections within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as delinquent taxes receivable, and are fully offset by deferred revenues because they are not available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. Q. 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, 2000,there were 16 note/bond issues outstanding, with an aggregate principal amount payable of approximately$52.9 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, 2000 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, 2000,were as follows: Fair Value Bank Balance $253,460 $238,105 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, 2000 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 31,2000 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 $ 7,614,018 $ - $ - $ 7,614,018 -- Commercial Paper 12,424,461 - - 12,424,461 Money Market 100,000 - - 100,000 Total Investments $20,138,479 $ - $ - $20,138,479 Total Deposits(See Note 2A) 253,460 Total Investments and Deposits 20,391,939 Less Restricted Cash and Investments 614,000 Net Cash,Cash Equivalents and Investments $ 19,777,939 In fiscal 2000, the city recorded an unrealized loss of$26,038 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 2000 were as follows: Balance Transfers/ Balance Jan 1,2000 Additions Deletions Dec 31,2000 Land $ 3,970,233 $ 133,852 $ - $ 4,104,085 Buildings 2,555,855 12,431 - 2,568,286 Other Improvements 16,545,533 652,162 - 17,197,695 Vehicles 288,719 - 78,268 210,451 Machinery&Equipment 1,505,945 50,112 32,990 1,523,067 Total $24,866,285 $ 848,557 $ 111,258 $25,603,584 37 City of Hopkins, Minnesota _ NOTES TO FINANCIAL STATEMENTS-CONTINUED December 31, 2000 Changes in proprietary fund type property and equipment during 2000 were as follows: — Balance Balance Jan 1,2000 Additions Deletions Dec 31, 2000 _ Land $ 321,597 $ 26,800 $ - $ 348,397 Buildings 6,531,097 30,381 - 6,561,478 Other Improvements 16,944,331 1,248,074 - 18,192,405 Machinery&Equipment 5,384,362 939,992 504,579 5,819,291 Construction in Progress 442,670 1,118,066 - 1,560,736 Total $29,624,057 $ 3,362,829 $ 504,579 $32,482,307 Less: Accumulated depreciation 10,319,642 Net Fixed Assets $22,162,665 4 LONG-TERM DEBT Changes in long-term debt during 2000 were as follows: Balance Balance Jan 1, 2000 Additions Deductions Dec 31, 2000 General Obligation Bonds $15,758,543 $ - $ 540,000 $15,218,543 Special Assessment Bonds 2,155,000 - 180,000 1,975,000 Total 17,913,543 - 720,000 17,193,543 Enterprise Revenue Bonds 3,620,000 2,060,000 205,000 5,475,000 Total $21,533,543 $2,060,000 $ 925,000 $22,668,543 The long-term debt obligations outstanding at year-end are summarized as follows: Bonds Maturities Interest Rate Dec 31,2000 — General Obligation Bonds 2001-2021 3.80-8.10% $ 15,218,543 Special Assessment Bonds 2001-2010 4.00-6.70 1,975,000 — Revenue Bonds 2001-2015 4.00-5.50 5,475,000 38 City of Hopkins,Minnesota NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31,2000 Long-term debt maturities(including interest of$11,673,403)are as follows: Year Ending Special December 31 General Revenue Assessment Total "- 2001 $ 1,765,332 $ 633,615 $ 341,423 $ 2,740,370 2002 1,845,207 574,145 285,398 2,704,750 2003 1,888,334 573,828 280,589 2,742,751 -- 2004 1,745,329 577,572 275,380 2,598,281 2005 1,799,555 575,325 264,833 2,639,713 2006 1,793,737 572,148 258,937 2,624,822 2007 1,866,624 577,819 252,597 2,697,040 2008 1,847,096 577,280 245,802 2,670,178 2009 1,848,638 575,675 107,415 2,531,728 Thereafter 8,042,216 2,242,577 107,520 10,392,313 Less: Interest 9,223,525 2,004,984 444,894 11,673,403 $ 15,218,543 $ 5,475,000 $ 1,975,000 $ 22,668,543 There is $1,819,160 available in the Debt Service Funds to service the general obligation and tax increment bonds. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax Increment levies and also by fees assessed against benefited properties. Revenue Bonds are backed by the full faith,credit and taxing power of the City, and are serviced by the Storm Sewer Utility Fund current revenues. City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and repayment monies are generated by the collection of Special Assessments and General levies. The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market value. At December 31, 2000, the debt limit for the City was $17,695,160 but only $1,615,000 of general obligation and revenue bonds were applicable to the limit. The legal debt margin was$17,695,160. 39 City of Hopkins, Minnesota — NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31,2000 5 DESIGNATIONS AND RESERVES OF FUND EQUITY ..- Fund equity in the various funds has been reserved or designated at December 31, 2000 as follows: Reserved General Fund: Inventories $ 79,692 Advance to other funds 572,868 '— Total $ 652,560 Special Revenue Funds: Loans receivable 667,644 — Central Business District Redevelopment Plan 200,000 Long term receivables 2,410,630 Valley Park Condominiums 55,100 _ Patio Homes 170,890 Total 3,504,264 Debt Service Funds: Debt service 1,819,160 Enterprise Funds: Storm Sewer Utility Fund: Bonds and Interest 250,000 — Total Reserved $6,225,984 Designated — General Fund: Shady Oak Beach Development $ 136,830 New fund transfer 100,000 — Downtown Stage 32,000 Budget Carryovers 26,600 Working Capital 2,150,966 — Total 2,446,396 Special Revenue Funds Housing Rehab 87,021 State Chemical Assessment 9,882 _ Cable TV equipment 8,500 Total 105,403 Capital Projects Funds: — Street Improvements 3,796,820 Total Designated $6,348,619 _ 40 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS-CONTINUED December 31,2000 6 INTERFUND RECEIVABLES AND PAYABLES The following funds had amounts receivable from other funds,and the respective funds had equal amounts payable to other funds at December 31, 2000: Interfund Interfund Fund Receivable Payable General Fund $ 12,000 $ 26,037 Special Revenue Funds: Economic Development Fund 1,893,587 - Tax Increment 1.1 Fund 810,630 - Art Facility Construction - 240,000 Tax Increment 1.2 Fund - 1,972,538 Paratransit Fund - 12,000 Housing Rehabilitation - 174 Section 8 Housing Fund 174 - Tax Increment 2.6 Fund - 491,679 Capital Project Funds: Permanent Improvement Revolving Fund 419,435 - _ Enterprise Funds: Storm Sewer Utility Fund - 393,398 Total $3,135,826 $ 3,135,826 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 31,2000 is as follows: Storm Water Sewer Refuse Sewer Total Utility Utility Utility Utility Utility Fund Fund Fund Fund Funds Operating Revenues $ 1,065,766 $ 1,430,939 $ 564,190 $ 661,776 $ 3,722,671 Depreciation Expense 246,944 96,885 31,693 185,289 560,814 Operating Income(Loss) 139,747 195,733 (60,947) 353,405 627,938 Net Income(Loss) 207,484 324,778 9,634 230,394 772,290 _ Grants - - 29,602 - 29,602 Property and Equipment: Additions 1,198,167 766,424 28,738 786,108 2,779,437 Deletions 77,574 75,061 126,885 - 280,014 Net Working Capital 1,710,650 1,108,181 592,848 70,160 3,481,839 Total Assets 6,579,250 4,637,364 1,118,422 6,862,174 19,197,210 Bonds Payable 2,060,000 - - 3,415,000 5,475,000 Contributed Assets - 472,684 - - 472,684 Total Equity $ 4,403,874 $ 4,432,683 $ 1,064,141 $ 2,984,259 $ 12,884,957 41 City of Hopkins, Minnesota — NOTES TO FINANCIAL STATEMENTS-CONTINUED December 31, 2000 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 $ 247,326 $ 199,255 $ 56,888 $ 225,551 $ 4,451,691 Depreciation Expense 58,174 80,306 3,038 - 702,329 Operating Income(Loss) (34,861) (221,634) 20,111 (258,183) 133,371 Operating Transfer In - - 28,308 - 28,308 — Net Income(Loss) (30,540) (235,874) 49,522 (112,844) 442,554 Grants - - - 143,070 172,672 Property and Equipment: Additions 4,503 1,515 30,381 - 2,815,836 Deletions - - - - 280,114 Net Working Capital 73,638 (115,269) 22,179 (12,265) 3,450,122 Total Assets 2,048,673 3,987,952 50,597 34,497 25,318,929 -- Bonds Payable/Advance - 872,868 - - 6,347,868 Contributed Assets 2,085,025 3,820,618 - - 6,378,327 Total Equity $ 2,026,936 $ 2,920,635 $ 49,522 $ (12,265) $ 17,869,785 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) and the Public Employees Police and Fire Fund (PEPFF), which are cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers,fire fighters and peace officers who qualify for membership by statute are covered by PEPFF. — PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The — defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service,age,and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring — member receives the higher of a step-rate benefit accrual formula(Method 1) or a level accrual formula(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated — Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 — percent for each year of service. For all PEPFF members and for PERF members whose annuity is calculated 42 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31, 2000 using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree--no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service,but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street 4200, St. Paul,Minnesota, 55102 or by calling(651)296-7460 or 1-800-652-9026. 2. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75%, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary. The City of Hopkins is required to contribute the following percentages of annual covered payroll: 11.43%for Basic Plan PERF members, 5.18%for Coordinated Plan PERF members and 9.3% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2000, 1999, and 1998 were$183,408, $172,443, and$164,242, respectively. The _ City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2000, 1999, and 1998 were $135,288, $139,731, and $153,481, 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: 43 City of Hopkins,Minnesota _ NOTES TO FINANCIAL STATEMENTS -CONTINUED December 31,2000 — 2000 Contributions: City $29,000 — State $ 56,420 Actuarial valuation date: 12/31/00 Actuarial cost method: Entry age normal actuarial cost method Assumed rate of return: 5% — Actuarial valuation period Open 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 — 12/31/00 $ - 100% 2,436,824 12/31/99 $ - 100% 2,380,543 12/31/98 $ - 100% 1,723,374 12/31/97 $ - 100% 1,483,054 — Actuarial Valuations Actuarial Actuarial Accrued Excess of Actuarial Value of Liability(AAL) Assets Funded Valuation Assets Entry Age Over AAL Ratio — Date (a) (b) (a-b) (a/b) 12/31/00 2,694,630 2,436,824 257,406 111% 12/31/99 2,540,500 2,380,543 159,950 107% 12/31/98 2,151,362 1,723,374 427,988 125% — 12/31/97 1,744,232 1,483,054 261,178 118% The estimated accrued liability of$2,436,824 at December 31, 2000 was calculated using the State of Minnesota Schedule I form for lump sum pension plans. This results in excess net assets available for benefits of$257,406 as of December 31, 2000. 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, 2000, actual expenditures exceeded the budgeted amount in the Economic Development fund and the Depot Coffee House fund. Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process are funds that are completely reimbursable from the federal government, Tax Increment District 2-11 and funds that are established for a particular project and that project has been primarily completed. The following is a list of non- budgeted funds and a reconcilement of budgeted and non-budgeted funds actual, revenues, expenditures and other _ financing sources(uses): Community Development Block Grant,T.I.F. 2.11 and the Art Center Construction. Budgeted Special Non-budgeted Total Special Revenue Funds Funds Revenue Funds Total Revenue $ 4,016,473 $ 113,639 $ 4,130,112 Total Expenditure $ 2,328,067 $ 71,425 $ 2,399,492 Total Other Financing Sources(Uses) $ (540,058) $ (49,999) $ (590,057) _ 44 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS-CONTINUED December 31, 2000 10 FUND BALANCE AND RETAINED EARNINGS DEFICITS At December 31, 2000, 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 $231,317 Tax Increment 2.6 $475,676 Pavilion/Ice Arena $ 58,089 _ Art Center $ 899,983 Housing Authority $ 12,265 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$677,644 at December 31,2000. 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 March 29, 2001,the City purchased property with tax increment funds in the amount of$845,000. 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$5,000 deductible per occurrence for its property and liability coverage. The public entity risk pool is responsible for all losses in excess of$5,000 per occurrence. 15 NEW FUNDS The City created a new Skate Park Fund. The Skate Park Fund is an enterprise fund. The City took over responsibility of administering the Northwest Metro Drug Task Force funds. This is a new agency fund, which had no activity in 2000 other than receiving the confiscated funds. 45 CITY OF HOPKI NS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT SECTION IIB COMBINING, INDIVIDUAL FUNDS AND ACCOUNT GROUPS STATEMENTS AND SCHEDULES 46 CITY OF HOPKINS, 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. 47 CITY OF HOPKINS, MINNESOTA B GENERALFUND - BALANCESHEET December 31, 2000 With Comparative Amounts for December 31, 1999 2000 1999 ASSETS Cash and investments $ 3,186,761 $ 2,934,132 - Taxes receivable 131,353 134,144 Accounts receivable 49,077 66,582 Accrued interest receivable 53,462 46,916 _ Due from other funds 12,000 23,000 Due from other governments 39,300 13,320 Prepaid items - 4,740 _ Advance to other funds 572,868 594,347 Inventory 79,692 74,912 Total Assets $ 4,124,513 $ 3,892,093 _ LIABILITIES AND FUND BALANCE Liabilities: _ Accounts payable $ 255,800 $ 312,056 Compensated absences payable 534,977 501,836 Due to other funds 26,037 Deferred revenue 173,182 193,219 Deposits payable 7,890 7,470 Total Liabilities 997,886 1,014,581 _ Fund Balance: Reserved: Inventory 79,692 74,912 _ Advance to other funds 572,868 594,347 Unreserved: Designated for downtown park stage 32,000 32,000 _ Designated for Shady Oak Beach Development 136,830 75,000 Designated for budget carryovers 26,600 7,000 Designated for new fund transfer 100,000 - Designated for working capital 2,150,966 2,088,634 Undesignated 27,671 5,619 Total Fund Balance 3,126,627 2,877,512 _ Total Liabilities and Fund Balance $ 4,124,513 $ 3,892,093 48 CITY OF HOPKINS, MINNESOTA B-1 GENERAL 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 2000 Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Property taxes $ 4,364,756 $ 4,327,792 $ (36,964) $ 4,049,173 Licenses and permits 357,400 428,435 71,035 469,564 - Intergovernmental 2,119,288 2,134,678 15,390 2,067,882 Fines and forfeitures 100,000 111,221 11,221 127,176 Charges for services 146,748 218,832 72,084 203,233 Investment earnings 297,089 165,005 (132,084) 160,942 Other 82,856 49,981 (32,875) 69,402 Total Revenues 7,468,137 7,435,944 (32,193) 7,147,372 Expenditures: General government 851,136 828,027 23,109 775,108 Public safety 3,200,568 3,158,178 42,390 3,369,212 Community development 705,771 670,252 35,519 792,455 Public works 1,494,169 1,500,689 (6,520) 1,610,219 Recreation 484,467 460,528 23,939 530,647 Other 40,395 1,318 39,077 23,874 Capital outlay 652,758 550,894 101,864 - Total Expenditures 7,429,264 7,169,886 259,378 7,101,515 Excess of revenues over expenditures 38,873 266,058 227,185 45,857 Other Financing Sources(Uses): Operating transfers in: 30,586 - (30,586) - - Operating transfers out: (18,859) (16,943) 1,916 (3,103) Total Other Financing Sources(Uses) 11,727 (16,943) (28,670) (3,103) Excess of revenues over expenditures and other financing sources(uses) 50,600 249,115 198,515 42,754 Fund Balance- January l 2,877,512 2,877,512 - 2,834,758 Fund Balance- December 31 $ 2,928,112 $ 3,126,627 $ 198,515 $ 2,877,512 49 CITY OF HOPKINS, MINNESOTA B-2 - GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL Year Ended December 31, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- Adjusted favorable 1999 - Budget Actual (unfavorable) Actual Taxes General property taxes $ 3,714,438 $ 3,735,932 $ 21,494 $ 3,491,748 - Fiscal disparities 650,318 591,860 (58,458) 557,425 Total Taxes 4,364,756 4,327,792 (36,964) 4,049,173 Licenses and permits Business 135,300 135,277 (23) 139,047 Non-business 222,100 293,158 71,058 330,517 _ Total Licenses and permits 357,400 428,435 71,035 469,564 Intergovernmental Local government aids 844,880 838,916 (5,964) 867,140 - Homestead credit 991,388 991,388 - 960,734 State grants 52,020 62,961 10,941 33,482 Insurance premium - police 135,700 143,123 7,423 135,862 - Insurance premium - fire 55,000 56,480 1,480 54,494 Federal grants 35,800 37,376 1,576 11,397 Other grants 4,500 4,434 (66) 4,773 Total Intergovernmental 2,119,288 2,134,678 15,390 2,067,882 Fines and forfeitures _ Court fines 100,000 111,221 11,221 124,414 Other - - - 2,762 Total Fines and forfeitures 100,000 111,221 11,221 127,176 - Charges for services General government 7,998 4,282 (3,716) 5,155 _ Community Services 45,500 93,810 48,310 113,219 Public safety 24,550 47,200 22,650 25,999 Public works 5,700 3,699 (2,001) 6,173 Recreation 60,000 66,281 6,281 50,939 - Community Development 3,000 3,560 560 1,748 Total Charges for services 146,748 218,832 72,084 203,233 Other Investment earnings 297,089 165,005 (132,084) 160,942 Miscellaneous 82,856 49,981 (32,875) 69,402 Total Other 379,945 214,986 (164,959) 230,344 Other Financing Sources 30,586 - (30,586) - - Total Revenues $ 7,498,723 $ 7,435,944 $ (62,779) $ 7,147,372 50 - CITY OF HOPKINS, MINNESOTA B-3 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Year Ended December 31, 2000 - With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance favorable 1999 Budget Actual (unfavorable) Actual GENERAL GOVERNMENT Mayor and Council _ Salaries and employee benefits $ 26,379 $ 25,886 $ 493 $ 23,424 Materials, supplies and services 86,817 86,713 104 66,043 Total 113,196 112,599 597 89,467 Administrative Services Salaries and employee benefits 337,809 309,484 28,325 279,303 Materials, supplies and services 52,201 63,904 (11,703) 85,441 Capital outlay 6,248 5,748 500 13,403 Total 396,258 379,136 17,122 378,147 Less expenditures charged to other activities (59,712) (59,715) 3 (46,260) Net 336,546 319,421 17,125 331,887 Finance Salaries and employee benefits 232,025 228,778 3,247 223,588 Materials, supplies and services 39,595 44,695 (5,100) 36,341 Capital outlay 17,507 17,507 - 18,921 Total 289,127 290,980 (1,853) 278,850 Less expenditures charged to other activities (159,976) (-62,887) 2,911 (160,460) Net 129,151 128,093 1,058 118,390 Legal Services Materials, supplies and services 121,020 97,389 23,631 118,548 Municipal Building Salaries and employee benefits 107,421 105,450 1,971 106,468 Materials, supplies and services 133,114 141,004 (7,890) 137,491 Capital outlay 105,498 6,077 99,421 11,611 Total 346,033 252,531 93,502 255,570 Less expenditures charged to other activities (180,000) (175,741) (4,259) (179,178) Net 166,033 76,790 89,243 76,392 51 CITY OF HOPKINS, MINNESOTA B_3 GENERAL FUND - SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL- CONTINUED Year Ended December 31, 2000 - With Comparative Actual Amounts for Year Ended December 31, 1999 2000 - Variance-- favorable 1999 _ GENERAL GOVERNMENT(continued) Budget Actual (unfavorable) Actual Elections Salaries and employee benefits 29,498 11,176 18,322 7,504 - Materials, supplies and services 4,174 15,169 (10,995) 10,777 Capital outlay 2,000 2,000 - _ Total 35,672 28,345 7,327 18,281 - City Clerk and Reception Salaries and employee benefits $ 96,274 $ 111,648 $ (15,374) $ 133,523 - Materials, supplies and services 7,997 8,573 (576) 9,845 Capital outlay 6,030 2,530 3,500 6,422 _ Total 110,301 122,751 (12,450) 149,790 Less expenditures charged to other activities (23,500) (23,499) (1) (21,960) Net 86,801 99,252 (12,451) 127,830 - TOTAL GENERAL GOVERNMENT 988,419 861,889 126,530 880,795 PUBLIC SAFETY Police Police Administration Salaries and employee benefits 239,196 245,639 (6,443) 179,815 Materials, supplies and services 72,510 75,323 (2,813) 79,971 Capital outlay 54,592 56,809 (2,217) 56,064 - Total 366,298 377,771 (11,473) 315,850 Less expenditures charged to other activities (354,298) (354,298) - (21,960) Net 12,000 23,473 (11,473) 293,890 Police Patrol and Investigation Salaries and employee benefits 1,591,277 1,507,044 84,233 1,455,771 Materials, supplies and services 500,189 492,013 8,176 262,451 Capital outlay 76,135 82,399 (6,264) 78,840 - Total 2,167,601 2,081,456 86,145 1,797,062 52 - CITY OF HOPKINS, MINNESOTA B-3 GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED Year Ended December 31, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- favorable 1999 PUBLIC SAFETY(continued) Budget Actual (unfavorable) Actual Police Services Salaries and employee benefits 322,077 595,002 (272,925) 535,454 _ Materials, supplies and services 384,878 165,897 218,981 105,154 Capital outlay 50,227 50,629 (402) 35,903 Total 757,182 811,528 (54,346) 676,511 Total Police 2,936,783 2,916,457 20,326 2,789,423 Fire Salaries and employee benefits 279,730 277,942 1,788 287,742 Materials, supplies and services 165,009 153,616 11,393 161,427 Capital outlay 127,632 127,632 - 130,620 Total 572,371 559,190 13,181 579,789 TOTAL PUBLIC SAFETY 3,509,154 3,475,647 33,507 3,369,212 COMMUNITY DEVELOPMENT Planning and Economic Development Salaries and employee benefits 112,313 108,192 4,121 105,629 _ Materials, supplies and services 27,990 27,540 450 41,157 Capital outlay 3,493 3,493 - 4,116 Total 143,796 139,225 4,571 150,902 Less expenditures charged to other activities (9,900) (9,860) (40) (9,860) Net 133,896 129,365 4,531 141,042 Assessing Salaries and employee benefits 197,959 188,600 9,359 172,293 Materials, supplies and services 21,938 21,077 861 20,415 Capital outlay 4,135 4,135 - 3,816 Total 224,032 213,812 10,220 196,524 53 CITY OF HOPKINS, MINNESOTA B-3 GENERAL FUND - SCHEDULE OF EXPENDITURES -BUDGET AND ACTUAL- CONTINUED Year Ended December 31, 2000 - With Comparative Actual Amounts for Year Ended December 31, 1999 2000 - Variance-- favorable 1999 _ COMMUNITY DEVELOPMENT(continued) Budget Actual (unfavorable) Actual Inspections Salaries and employee benefits 299,347 266,061 33,286 266,853 - Materials, supplies and services 56,124 68,642 (12,518) 43,590 Capital outlay 6,843 6,843 - 38,759 Total 362,314 341,546 20,768 349,202 - TOTAL COMMUNITY DEVELOPMENT 720,242 684,723 35,519 686,768 PUBLIC WORKS Public Works Buildings&Equipment Services Salaries and employee benefits 162,781 164,014 (1,233) 161,441 - Materials, supplies and services 51,521 48,643 2,878 49,995 Capital outlay 7,892 10,012 (2,120) 1,680 Total 222,194 222,669 (475) 213,116 Less expenditures charged to other activities (189,953) (194,698) 4,745 (195,324) Net 32,241 27,971 4,270 17,792 - Public Works Administration and Engineering Salaries and employee benefits $ 240,235 $ 240,023 $ 212 $ 231,565 - Materials, supplies and services 40,736 36,342 4,394 46,336 Capital outlay 12,056 12,056 - 13,327 Total 293,027 288,421 4,606 291,228 - Less expenditures charged to other activities (194,764) (168,727) (26,037) (146,344) Net 98,263 119,694 (21,431) 144,884 Streets and Alleys: Salaries and employee benefits 349,654 353,428 (3,774) 356,663 Materials, supplies and services 241,101 201,384 39,717 216,626 - Capital outlay 81,836 81,620 216 81,655 Total 672,591 636,432 36,159 654,944 _ Less expenditures charged to other activities (93,000) (93,000) - (64,980) Net 579,591 543,432 36,159 589,964 54 - CITY OF HOPKINS, MINNESOTA B-3 GENERALFUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED Year Ended December 31, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- favorable 1999 PUBLIC WORKS(continued) Budget Actual (unfavorable) Actual Sidewalk Repair and Mall Maintenance: Salaries and employee benefits 4,921 11,484 (6,563) 4,867 _ Materials, supplies and services 34,120 30,850 3,270 27,598 Total 39,041 42,334 (3,293) 32,465 Signs, Signals and Lighting: Salaries and employee benefits 70,244 68,793 1,451 68,007 Materials, supplies and services 191,673 186,232 5,441 177,428 Capital outlay 8,717 5,675 3,042 4,704 Total 270,634 260,700 9,934 250,139 Municipal Parks and Tree Service: Salaries and employee benefits 427,976 454,384 (26,408) 392,977 Materials, supplies and services 156,924 161,537 (4,613) 148,905 Capital outlay 55,421 49,233 6,188 33,093 Total 640,321 665,154 (24,833) 574,975 TOTAL PUBLIC WORKS 1,660,091 1,659,285 806 1,610,219 RECREATION: Activity Center Salaries and employee benefits 165,451 155,814 9,637 149,323 Materials, supplies and services 106,916 103,777 3,139 90,091 Capital outlay 1,496 1,496 - 11,039 Total 273,863 261,087 12,776 250,453 Park and Recreation Salaries and employee benefits 80,600 70,009 10,591 52,042 Materials, supplies and services 131,500 130,928 572 127,912 Capital outlay 25,000 25,000 - 100,240 Total 237,100 225,937 11,163 280,194 TOTAL RECREATION 510,963 487,024 23,939 530,647 55 CITY OF HOPKINS, MINNESOTA B-3 GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED Year Ended December 31, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- favorable 1999 Budget Actual (unfavorable) Actual UNALLOCATED: Materials, supplies and services 40,395 1,318 39,077 13,837 Capital outlay 10,037 TOTAL UNALLOCATED 40,395 1,318 39,077 23,874 _ TOTAL EXPENDITURES $ 7,429,264 $ 7,169,886 $ 259,378 $ 7,101,515 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 31,2000 With Comparative Totals for December 31, 1999 State Real Estate Hennepin Art Tax Chemical Economic Purchases County Facility Increment Assessment Development &Sales CDBG Construction Districts ASSETS Cash and investments $ 10,343 $ 1,245,824 $ 47,960 $ 1,942 $ 8,683 $ 2,404,489 _ Taxes receivable _ Special assessments receivable - Accounts receivable 1,270 12,611 - 736 - 10,463 _ Rehabilitation loans receivable - 568,896 - 80,273 - - Accrued interest receivable - 9,460 664 79 - 40,691 Due from other funds - 1,893,587 - - - 810,630 _ Due from other governments 1,480 - - - - 834 Advance to other funds - 300,000 Long term loans receivable - - - - - 2,1 10,630 Restricted cash and investments - - - - - 200,000 Total Assets $ 13,093 $ 4,030,378 $ 48,624 $ 83,030 $ 8,683 $ 5,577,737 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 3,211 $ 9,023 $ - $ 736 $ - $ 385,578 Compensated absences payable - 29,242 Due to other funds - - - - 240,000 2,464,217 Due to other governments - Deferred revenue - 202,501 Total Liabilities 3,211 240,766 - 736 240,000 2,849,795 Fund balances: Reserved for loans receivable - 568,896 - 80,273 - - Reserved for Patio Homes - Reserved for Valley Park Condominiums Reserved for Business District Plan - - - - - 200,000 Reserved for advance to other funds - 300,000 - - - 2,110,630 Unreserved: Designated for Bldg.Imprvmnts. - Designated for Equipment - Designated for Parking lot - Designated for State Chemical Assess. 9,882 - - - - Designated for Housing Rehab - - - 2,021 - - Undesignated - 2,920,716 48,624 - (231,317) 417,312 Total Fund Balances 9,882 3,789,612 48,624 82,294 (231,317) 2,727,942 Total Liabilities and Fund Balance $ 13,093 $ 4,030,378 $ 48,624 $ 83,030 $ 8,683 $ 5,577,737 -' 58 C Depot Housing Section 8 Coffee Totals Para-Transit Rehab Parking Housing Cable TV House 2000 1999 $ 625 $ 1,124,436 $ 365,730 $ 12,849 $ 295,470 $ 14,440 $ 5,532,791 $ 4,158,701 - 16,489 _ _ _ _ _ - 1,313 1,000 (785) - 7 33,508 651 59,461 55,685 18,475 - - - - 667,644 789,585 18,070 4,776 - 4,157 - 77,897 68,711 - - 174 - - 2,704,391 4,334,162 17,311 - 4,065 8,326 - - 32,016 57,919 300,000 300,000 2,110,630 2,150,000 164,000 - - - - 364,000 364,000 $ 18,936 $ 1,324,196 $ 374,571 $ 21,356 $ 333,135 $ 15,091 $ 11,848,830 $ 12,296,565 $ 6,936 $ 2,518 $ 3,972 $ 1,816 $ 3,346 $ 8,892 $ 426,028 $ 365,224 3,666 790 1,472 2,524 3,132 40,826 38,280 12,000 174 - - - 2,716,391 4,357,162 250 - - - - 250 15,283 11,660 - - - 214,161 210,005 18,936 6,608 16,422 3,288 5,870 12,024 3,397,656 4,985,954 18,475 - - - - 667,644 789,585 170,890 - - - - 170,890 357,018 55,100 55,100 110,507 - 200,000 200,000 - 2,410,630 2,450,000 8,500 - 8,500 12,300 5,000 9,882 12,879 85,000 - - - - 87,021 66,247 988,123 358,149 18,068 318,765 3,067 4,841,507 3,307,075 1,317,588 358,149 18,068 327,265 3,067 8,451,174 7,310,611 $ 18,936 $ 1,324,196 $ 374,571 $ 21,356 $ 333,135 $ 15,091 $ 11,848,830 $ 12,296,565 59 CITY OF HOPKINS, MINNESOTA — TAX INCREMENT FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 — Tax Tax Tax Tax — Increment Increment Increment Increment 1.1 1.2 2.1 2.6 ASSETS Cash and investments $ 1,393,756 $ 12,579 $ 530,611 $ 5,797 Taxes receivable _ _ Accounts receivable - - - 10,463 Accrued interest receivable 25,280 1,539 7,351 79 Due from other funds 810,630 - - _ Due from other governments - _ _ Long term loans receivable 2,110,630 Restricted cash and investments - 200,000 - - Total Assets 2,324,748 LIABILITIES AND FUND BALANCE _ Liabilities: Accounts payable $ 27,629 $ 382 $ 273,845 $ 336 Due to other funds - 1,972,538 - 491,679 — Total Liabilities 277629 1,972,920 273,845 492,015 Fund Balance(Deficit): — Reserved for Business District Redevop. - 200,000 - - Reserved for long term loan receivable - 2,110,630 - - Unreserved: Undesignated 2,202,037 (1,958,802) 264,117 (475,676) Total Fund Balance 2,202,037 351,828 264,117 (475,676) — Total Liabilities and Fund Balance $ 2,229,666 $ 2,324,748 $ 537,962 $ 16,339 60 Ca Tax Tax Tax Tax Increment Increment Increment Increment Totals 2.7 2.8 2.9 2.11 2000 1999 $ 260,167 $ 62,562 $ 106,174 $ 32,843 $ 2,404,489 $ 1,562,237 - - 16,489 - 10,463 12,138 3,604 924 1,459 455 40,691 20,571 - - 810,630 1,906,501 - 834 - 834 - 2,110,630 2,150,000 - 200,000 200,000 ,7 5,57 5,867,936 $ 51,776 $ 29,896 $ 1,624 $ 90 $ 385,578 $ 328,519 - 2,464,217 4,070,773 51,776 29,896 1,624 90 2,849,795 4,399,292 _ - - - - 200,000 200,000 - - 2,110,630 2,150,000 211,995 33,590 106,843 33,208 417,312 (881,356) 211,995 33,590 106,843 33,208 2,727,942 1,468,644 $ 263,771 $ 63,486 $ 108,467 $ 33,298 $ 5,577,737 $ 5,867,936 61 CITY OF HOPKINS,MINNESOTA SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES Year Ended December 31,2000 - With Comparative Totals for Year Ended December 31, 1999 State Real Estate Hennepin Art Tax - Chemical Economic Purchases County Facility Increment Assessment Development &Sales CDBG Construction Districts Revenues: _ Taxes: Tax increment $ - $ - $ - $ - $ - $ 2,232,616 Special assessments - - - - _ _ Intergovernmental: Federal - - - 14,631 - State of Minnesota 35,049 807,348 - - _ Other - - - _ _ Franchise fee - - - - _ _ Fines and forfeitures - - - - _ _ Charges for services - 82,273 3,700 38,772 - 13,478 _ Investment earnings - 38,636 2,842 343 - 133,989 Other - - - - 23,730 10,463 Total Revenues 35,049 928,257 6,542 53,746 23,730 2,390,546 Expenditures: Salaries and employee benefits 15,363 108,926 Materials,supplies and services 22,683 43,240 - 65,726 100 109,394 - Capital outlay: Office equipment&furnishing - - - - - Land acquisitions - - - - - 5,929 Site improvements - 808,644 - - 3,859 408,925 - Other equipment - 466 - - - Total Expenditures 38,046 961,276 - 65,726 3,959 524,248 Less expenditures charged to other - activities - (61,482) - Net 38,046 899,794 - 65,726 3,959 524,248 Excess(deficiency)of revenues over expenditures (2,997) 28,463 6,542 (11,980) 19,771 1,866,298 Other Financing Sources(Uses): Proceeds from bond issuance - - - - - - Operating transfers in - 49,999 - - - Operating transfers out - - - (49,999) - (607,000) - Total Other Financing Sources(Uses) - 49,999 - (49,999) - (607,000) Excess(deficiency)of revenues and other financing sources over expenditures and other financing uses (2,997) 78,462 6,542 (61,979) 19,771 1,259,298 Fund Balance-January 1 12,879 3,711,150 42,082 144,273 (251,088) 1,468,644 - Fund Balance-December 31 $ 9,882 $ 3,789,612 $ 48,624 $ 82,294 $ (231,317) $ 2,727,942 62 C-1 Depot _ Housing Section 8 Coffee Totals Para-Transit Rehab Parking Housing Cable TV House 2000 1999 $ _ $ _ $ _ $ _ $ - $ - $ 2,232,616 $ 2,203,348 22,342 - - 22,342 16,065 76,270 - - 90,901 90,631 62,217 3,860 - - - 35,951 944,425 826,425 178,371 126,587 - 126,587 113,455 37,036 - - - 37,036 24,119 20,960 843 23,264 - 15,009 119,844 318,143 1,073,453 83,099 20,726 - 17,529 - 297,164 222,631 1,000 1,110 - - - 24,595 60,898 75,212 84,177 88,912 103,368 76,270 159,125 180,390 4,130,112 4,823,710 6,890 64,446 56,534 46,772 54,007 76,325 429,263 428,680 89,230 24,043 34,453 8,189 55,047 122,114 574,219 519,685 3,344 - 3,344 - - 6,688 - - 5,929 - 208,110 - - - - 1,429,538 5,757,106 1,500 - 13,371 - 15,337 28,377 96,120 299,943 92,487 58,305 122,425 198,439 2,460,974 6,733,848 _ (61,482) (62,760) 96,120 299,943 92,487 58,305 122,425 198,439 2,399,492 6,671,088 (11,943) (211,031) 10,881 17,965 36,700 (18,049) 1,730,620 (1,847,378) 4,030,000 11,943 - - - - 5,000 66,942 137,722 (656,999) (1,564,930) 11,943 - - - - 5,000 (590,057) 2,602,792 (211,031) 10,881 17,965 36,700 (13,049) 1,140,563 755,414 1,528,619 347,268 103 290,565 16,116 7,310,611 6,555,197 $ - $ 1,317,588 $ 358,149 $ 18,068 $ 327,265 $ 3,067 $ 8,451,174 $ 7,310,611 63 CITY OF HOPKINS, MINNESOTA TAX INCREMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 _ With Comparative Totals for Year Ended December 31, 1999 Tax Tax Tax Tax Increment Increment Increment Increment 1.1 1.2 2.1 2.6 _ Revenues: Taxes: Tax increment $ 1,278,921 $ 63,778 $ 569,055 $ 8,561 Charges for services 13,478 - - - Investment earnings 87,742 5,974 19,891 - Other - - - 10,463 _ Total Revenues 1,380,141 69,752 588,946 19,024 Expenditures: Materials, supplies and services 6,741 4,155 56,593 1,675 Capital outlay: Land acquisitions 5,929 Site improvements 3,605 47,243 273,020 - Total Expenditures 16,275 51,398 329,613 1,675 Excess of revenues over 1,363,866 18,354 259,333 17,349 expenditures Other Financing Sources(Uses) Operating transfer in - - - Operating transfer to debt service (348,000) - (225,000) - Total Other Financing Sources(Uses) (348,000) - (225,000) - T Excess of revenues over expenditures and other financing uses 1,015,866 18,354 34,333 17,349 Fund balance(deficit)-January 1 1,186,171 333,474 229,784 (493,025) Fund balance(deficit)- December 31 $ 2,202,037 $ 351,828 $ 264,117 $ (475,676) 64 C-la Tax Tax Tax Tax Increment Increment Increment Increment Totals 2.7 2.8 2.9 2.11 2000 1999 $ 105,075 $ 45,224 $ 126,922 $ 35,080 $ 2,232,616 $ 2,203,348 13,478 - 12,617 2,379 4,303 1,083 133,989 59,015 - - 10,463 12,138 117,692 47,603 131,225 36,163 2,390,546 2,274,501 12,275 1,783 24,432 1,740 109,394 108,354 5,929 - 51,358 33,699 - - 408,925 519,958 63,633 35,482 24,432 1,740 524,248 628,312 54,059 12,121 106,793 34,423 1,866,298 1,646,189 137,119 (34,000) - (607,000) (1,263,600) - - (34,000) - (607,000) (1,126,481) 54,059 12,121 72,793 34,423 1,259,298 519,708 157,936 21,469 34,050 (1,215) 1,468,644 948,936 $ 211,995 $ 33,590 $ 106,843 $ 33,208 $ 2,727,942 $ 1,468,644 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- _ favorable 1999 Budget Actual (unfavorable) Actual Revenues: _ Intergovernmental revenue: State grant $ 55,000 $ 35,049 $ (19,951) $ 44,673 Investment earnings - - - 227 _ Total Revenues 55,000 35,049 (19,951) 44,900 Expenditures: _ Salaries and employee benefits 17,000 15,363 1,637 14,846 Materials, supplies and services 38,000 22,683 15,317 17,175 Total Expenditures 55,000 38,046 16,954 32,021 Excess(deficiency)of revenues over expenditures - (2,997) (2,997) 12,879 Fund Balance-January 1 12,879 12,879 - - Fund Balance- December 31 $ 12,879 $ 9,882 $ (2,997) $ 12,879 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Intergovernmental: State grants $ 737,958 $ 807,348 $ 69,390 $ 695,663 Metropolitan Council Grant - - - 168,371 Charges for services 100,513 82,273 (18,240) 156,139 Investment earnings 32,000 38,636 6,636 37,979 Other 2,000 - (2,000) 11,728 Total Revenues 872,471 928,257 55,786 1,069,880 Expenditures: Salaries and employee benefits 105,182 108,926 (3,744) 84,233 Materials, supplies and services 66,736 43,240 23,496 72,283 Capital outlay: Site Improvements 737,958 808,644 (70,686) 868,000 Other equipment 466 466 - 468 _ Total 910,342 961,276 (50,934) 1,024,984 Less expenditures charged to other activities (61,483) (61,482) - (62,760) Net 848,859 899,794 (50,934) 962,224 Excess of revenues over expenditures 23,612 28,463 4,852 107,656 Other Financing Sources(Uses): Operating transfer from CDBG - 49,999 49,999 - Operating transfer toTax Increment Funds - - - (13 7,119) Total Other Financing Sources(Uses) - 49,999 49,999 (137,119) Excess(deficiency)of revenues and other financing sources over expenditures and other financing uses 23,612 78,462 54,850 (29,463) Fund Balance- January 1 3,711,150 3,711,150 - 3,740,613 Fund Balance- December 31 $ 3,734,762 $ 3,789,612 $ 54,850 $ 3,711,150 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: _ Charges for services $ 3,700 $ 3,700 $ - $ 3,700 Investment earnings 2,000 2,842 842 2,133 Total Revenues 5,700 6,542 842 5,833 _ Expenditures: Excess of revenues over expenditures 5,700 6,542 842 5,833 Fund Balance-January 1 42,082 42,082 - 36,249 Fund Balance- December 31 $ 47,782 $ 48,624 $ 842 $ 42,08T- 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 _ Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Intergovernmental: State grant(Para-Transit) $ 67,400 $ 62,217 $ (5,183) $ 39,640 Charges for services 20,400 20,960 560 18,764 Contributions - 1,000 1,000 - Total Revenues 87,800 84,177 (3,623) 58,404 Expenditures: Salaries and employee benefits 9,063 6,890 2,173 7,450 Materials, supplies and services 90,096 89,230 866 54,515 Total Expenditures 99,159 96,120 3,039 61,965 Deficiency of revenues over expenditures (11,359) (11,943) (584) (3,561) Other Financing Sources: Operating transfer from the General Fund 11,359 11,943 584 603 Deficiency of revenues and other financing sources over expenditures - - - (2,958) Fund Balance- January 1 - - - 2,958 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 _ 2000 Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Intergovernmental: State grants $ - $ 3,860 $ 3,860 $ 1,930 Charges for services 4,000 843 (3,157) 765,649 _ Investment earnings 75,000 83,099 8,099 94,181 Other - 1,110 1,110 890 _ Total Revenues 79,000 88,912 9,912 862,650 Expenditures: Salaries and employee benefits 64,039 64,446 (407) 60,148 Materials, supplies and services 28,580 24,043 4,537 23,795 Capital outlay: _ Office equipment& furnishings 3,344 3,344 - Other equipment - - - 5,856 Valley Park Condominiums 42,312 42,267 45 1,394,669 - Patio Homes 165,339 165,843 (504) 2,974,479 Total Expenditures 303,614 299,943 3,671 4,458,947 Excess(deficiency)of revenues over expenditures (224,614) (211,031) 13,583 (3,596,297) Other Financing Sources(Uses): - Proceeds from bond issuance - - - 4,030,000 Operating transfer to debt service, 1999-Housing - - - (164,211) Total Other Financing Sources(Uses) - - - 3,865,789 Excess (deficiency)of revenues and other financing _ sources over expenditures and other financing uses (224,614) (211,031) 13,583 269,492 Fund Balance-January 1 1,528,619 1,528,619 - 1,271,810 _ Residual equity transfer out - - - (12,683) Fund Balance- December 31 $ 1,304,005 $ 1,317,588 $ 13,583 $ 1,528,619 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 _ Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Special Assessments $ - $ 22,342 $ 22,342 $ 16,065 Court fines 24,000 37,036 13,036 24,119 -- Charges for services 33,500 23,264 (10,236) 19,218 Investment earnings 12,000 20,726 8,726 15,592 Total Revenues 69,500 103,368 33,868 74,994 Expenditures: Salaries and employee benefits 59,853 56,534 3,319 65,154 Materials, supplies and services 60,032 34,453 25,579 56,918 Capital outlay: _ Other equipment 1,500 1,500 - 1,296 Total Expenditures 121,385 92,487 28,898 123,368 Excess (deficiency)of revenues over expenditures (51,885) 10,881 62,766 (48,374) Fund Balance-January 1 347,268 347,268 - 395,642 Fund Balance- December 31 $ 295,383 $ 358,149 $ 62,766 $ 347;268 _ 71 CITY OF HOPKINS, MINNESOTA C-8 SECTION 8 HOUSING 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 _ 2000 — Variance-- favorable 1999 Budget Actual (unfavorable) Actual — Revenues: Intergovernmental: Federal - Section 8 $ 75,000 $ 76,270 $ 1,270 $ 57,022 Investment earnings 1,000 - (1,000) - Total Revenues 76,000 76,270 270 57,022 Expenditures: Salaries and employee benefits 65,359 46,772 18,587 58,287 _ Materials, supplies and services 11,200 8,189 3,011 10,204 Capital outlay 3,344 3,344 - 1,111 Total Expenditures 79,903 58,305 21,598 69,602 Excess(deficiency)of revenues over expenditures (3,903) 17,965 21,868 (12,580) Fund Balance-January 1 103 103 - - Residual equity transfer in - - - 12,683 Fund Balance- December 31 $ (3,800) $ 18,068 $ 21,868 $ 103 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 _ Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Franchise fees $ 105,000 $ 126,587 $ 21,587 $ 113,455 Charges for services - 15,009 15,009 - Investment earnings 11,000 17,529 6,529 12,827 Total Revenues 116,000 159,125 43,125 126,282 Expenditures: Salaries and employee benefits 50,906 54,007 (3,101) 49,574 Materials, supplies and services 54,123 55,047 (924) 51,617 Capital outlay 17,464 13,371 4,093 19,646 Total Expenditures 122,493 122,425 68 120,837 Excess(deficiency)of revenues over expenditures (6,493) 36,700 43,193 5,445 Fund Balance-January 1 290,565 290,565 - 285,120 Fund Balance-December 31 $ 284,072 $ 327,265 $ 43,193 $ 290,565 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 - 2000 - Variance-- favorable 1999 Budget Actual (unfavorable) Actual - Revenues: Intergovernmental: State grant $ 71,555 $ 35,951 $ (35,604) $ 44,519 Other miscellaneous - - - 10,000 Charges for services 105,000 119,844 14,844 106,104 _ Contributions 3,000 24,595 21,595 20,939 Other 500 - (500) 718 Total Revenues 180,055 180,390 335 182,280 - Expenditures: Salaries and employee benefits 75,124 76,325 (1,201) 88,988 - Materials, supplies and services 102,836 122,114 (19,278) 96,022 Total Expenditures 177,960 198,439 (20,479) 185,010 Excess (deficiency)of revenues over expenditures 2,095 (18,049) (20,144) (2,730) Other Financing Sources Operating transfer from the general fund - 5,000 5,000 - Excess(deficiency)of revenues and other financing - sources over expenditures 2,095 (13,049) (15,144) - Fund Balance- January 1 16,116 16,116 - 18,846 Fund Balance- December 31 $ 18,211 $ 3,067 $ (15,144) $ 16,116 - 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 31,2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Taxes: Tax increment $ 1,184,059 $ 1,278,921 $ 94,862 $ 1,280,218 Investment earnings 23,000 87,742 64,742 33,779 Charges for services - 13,478 13,478 - Total Revenues 1,207,059 1,380,141 159,604 1,313,997 Expenditures: Salaries and employee benefits - - - - Materials, supplies and services 2,750 6,741 (3,991) 6,273 Capital outlay: Land acquisition - 5,929 (5,929) - Construction 8,000 3,605 4,395 58,563 Total Expenditures 10,750 16,275 (5,525) 64,836 Excess of revenues over expenditures 1,196,309 1,363,866 167,557 1,249,161 Other Financing Uses: Operating transfer to Bonds of 1993 - Refunding (150,000) (148,000) 2,000 (135,000) Operating transfer to Bonds of 1993 - Refunding (200,000) (200,000) - (184,000) Operating transfer to Bonds of 1990-Taxable - - - (690,000) Total Other Financing Uses (350,000) (348,000) 2,000 (1,009,000) Excess of revenues over expenditures and other financing uses 846,309 1,015,866 169,557 240,161 Fund Balance- January 1 1,186,171 1,186,171 - 946,010 Fund Balance-December 31 $ 2,032,480 $ 2,202,037 $ 169,557 $ 1,186,171 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 - 2000 - Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Taxes: Tax increment $ 58,973 $ 63,778 $ 4,805 $ 66,450 Investment earnings 3,400 5,974 2,574 1,523 Total Revenues 62,373 69,752 7,379 67,973 Expenditures: Materials, supplies and services 2,500 4,155 (1,655) 4,306 - Capital outlay: Public improvements 57,997 47,243 10,754 105,227 Total Expenditures 60,497 51,398 9,099 109,533 - Excess of revenues over expenditures 1,876 18,354 16,478 (41,560) Other Financing Sources Operating transfer in - - - 137,119 Excess of revenues and other financing sources over expenditures 1,876 18,354 16,478 95,559 Fund Balance-January 1 333,474 333,474 - 237,915 Fund Balance- December 31 $ 335,350 $ 351,828 $ 16,478 $ 333,474 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 _ Variance-- favorable 1999 Budget Actual (unfavorable) Actual Revenues: Taxes: Tax increment $ 506,168 $ 569,055 $ 62,887 $ 586,518 Investment earnings 8,500 19,891 11,391 14,185 Total Revenues 514,668 588,946 74,278 600,703 - Expenditures: Salaries and employee benefits - - - Materials,supplies and services 52,250 56,593 (4,343) 54,641 Capital outlay: Site improvements-R.L. Johnson 274,928 273,020 1,908 271,108 Total Expenditures 327,178 329,613 (2,435) 325,749 Excess of revenues over expenditures 187,490 259,333 71,843 274,954 Other Financing Uses Operating transfer to debt service, 1997 - HRA (227,600) (225,000) 2,600 (215,600) Excess(deficiency)of revenues over expenditures and other financing uses (40,110) 34,333 74,443 59,354 Fund Balance-January 1 229,784 229,784 - 170,430 Fund Balance- December 31 $ 189,674 $ 264,117 $ 74,443 $ 229,784 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 _ 2000 _ Variance-- favorable 1999 Budget Actual (unfavorable) Actual — Revenues: Taxes: Tax increment $ 11,465 $ 8,561 $ (2,904) $ 6,886 Other 8,135 10,463 2,328 12,138 19,600 19,024 (576) 19,024 Expenditures: Materials, supplies and services 1,000 1,675 (675) 10,692 _ Excess of revenues over expenditures 18,600 17,349 (1,251) 8,332 Fund balance(deficit)-January 1 (493,025) (493,025) - (501,357) Fund balance(deficit)- December 31 $ (474,425) $ (475,676) $ (1,251) $ (493,025) — 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual _ Revenues: Taxes: Tax increment $ 103,500 $ 105,075 $ 1,575 $ 101,963 Investment earnings 8,135 12,617 4,482 8,178 Total Revenue 111,635 117,692 6,057 110,141 EXPENDITURES: Materials, supplies and services 11,450 12,275 (825) 10,933 Capital outlay: Site improvements 52,057 51,358 699 53,067 Total Expenditures 63,507 63,633 (126) 64,000 Excess of revenues over expenditures 48,128 54,059 6,183 46,141 Fund balance-January 1 157,936 157,936 - 111,795 Fund balance-December 31 206,064 211,995 6,183 157,936 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 _ Variance-- favorable 1999 Budget Actual (unfavorable) Actual - Revenues: Taxes: Tax increment $ 33,214 $ 45,224 $ 12,010 $ 45,534 - Investment earnings 300 2,379 2,079 1,183 Total Revenues 33,514 47,603 14,089 46,717 Expenditures: Materials, supplies and services 10,850 1,783 9,067 1,120 Site improvements 34,598 33,699 899 31,993 - Total Expenditures 45,448 35,482 9,966 33,113 Excess (deficiency)of revenues over expenditures (11,934) 12,121 24,055 13,604 Fund balance- January 1 21,469 21,469 - 7,865 Fund balance- December 31 $ 9,535 $ 33,590 $ 24,055 $ 21,469 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, 2000 With Comparative Actual Amounts for Year Ended December 31, 1999 2000 Variance favorable 1999 Budget Actual (unfavorable) Actual _ Revenues: Taxes Tax increment $ 126,829 $ 126,922 $ 93 $ 115,779 Investment earnings 3,000 4,303 1,303 167 Total Revenues 129,829 131,225 1,396 115,946 Expenditures Materials, supplies and services 23,000 24,432 (1,432) 19,174 Excess of revenues over expenditures 106,829 106,793 (36) 96,772 Other Financing Uses: Operating transfer out for debt service (34,000) (34,000) - (39,000) Excess of revenues over expenditures and other financing uses 72,829 72,793 (36) 57,772 _ Fund Balance- January 1 34,050 34,050 - (23,722) Fund Balance- December 31 106,879 106,843 (36) 34,050 81 (This page intentionally left blank) 82 _ 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. 83 CITY OF HOPKINS,MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31,2000 _ With Comparative Totals for December 31, 1999 Taxable Improvement Redevelopment Taxable D Redevelopment Redevelopment Improvement Revolving Refunding Redevelopment Refunding C Redevelopment Refunding A Revolving Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of 1990 1992 1996 1993 1996 1993 1992 ASSETS Cash and investments $ 45,525 $ 198,161 $ 49,815 $ 105,303 $ 45,415 $ 174,190 $ 200,082 Taxes receivable 1,097 - 1,748 Special assessments receivable - - Accrued interest receivable 631 2,745 690 1,459 629 2,413 2,772 Total Assets $ 47,253 $ 200,906 $ 50,505 $ 106,762 $ 46,044 $ 176,603 $ 204,602 LIABILITIES AND FUND BALANCE Liabilities: Deferred revenue $ 806 $ $ $ $ $ $ 1,607 Fund Balance: Reserved for debt service 46,447 200,906 50,505 106,762 46,044 176,603 202,995 Total Liabilities and Fund Balance $ 47,253 $ 200,906 $ 50,505 $ 106,762 $ 46,044 $ 176,603 $ 204,602 84 D Park and Taxable A Taxable B Recreational Housing Housing Improvement Refunding D Housing Redevelopment Housing Improvement Improvement Revolving Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Totals 1993 1995 1997 1997 1999 1999 1999 2000 1999 $ 184,143 $ 113,975 $ 184,505 $ 136,262 $ 85,110 $ 166,905 $ 92,418 $ 1,781,809 $ 1,589,959 5,966 52 8,863 10,186 - 1,088,813 2,978,830 2,734,848 4,870,923 11,673,414 12,324,115 2,551 1,569 2,556 1,897 1,179 3,241 1,280 25,612 27,041 $ 192,660 $ 1,204,357 $ 187,061 $ 3,116,989 $ 2,821,137 $ 5,041,069 $ 93,750 $ 13,489,698 $ 13,951,301 $ 4,983 $ 1,087,707 $ $ 2,976,320 $ 2,731,120 $ 4,867,995 $ $ 11,670,538 $ 12,325,641 187,677 116,650 187,061 140,669 90,017 173,074 93,750 1,819,160 1,625,660 $ 192,660 $ 1,204,357 $ 187,061 $ 3,116,989 $ 2,821,137 $ 5,041,069 $ 93,750 $ 13,489,698 $ 13,951,301 85 CITY OF HOPKINS,MINNESOTA DEBT SERVICE FUNDS _ COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE Year Ended December 31,2000 With Comparative Totals for Year Ended December 31, 1999 Taxable Improvement Redevelopment Taxable D Redevelopment Redevelopment Improvement Revolving Refunding Redevelopment Refunding C Redevelopment Refunding A Revolving Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of 1990 1992 1996 1993 1996 1993 1992 Revenues: Taxes: General property taxes $ 38,078 $ $ - $ $ - $ - $ 33,901 Fiscal disparities 6,065 - - - 5,451 Special assesments Investment earnings 922 11,787 2,544 569 2,967 8,081 3,379 Total Revenues 45,065 11,787 2,544 569 2,967 8,081 42,731 Expenditures: Principal payments 45,000 - - 30,000 - 155,000 135,000 Interest on bonds 4,500 - 50,822 134,765 28,500 20,635 59,906 Fiscal agent charges 300 600 150 300 150 300 300 Total Expenditures 49,800 600 50,972 165,065 28,650 175,935 195,206 Excess(deficiency)of revenues over expenditures (4,735) 11,187 (48,428) (164,496) (25,683) (167,854) (152,475) Other Financing Sources: Operating transfer from P.I.R.Fund - - - - - 168,000 Operating transfer from Tax Increment 1.1 - - - 200,000 - 148,000 _ Operating transfer from Tax Increment 2.1 - - - Operating transfer from Tax Increment 2.9 - - 30,000 - 4,000 Operating transfer from Housing Rehab - - - Total Other Financing Sources - - 30,000 200,000 4,000 148,000 168,000 Excess(deficiency)of revenues and other _ financing sources over expenditures (4,735) 11,187 (18,428) 35,504 (21,683) (19,854) 15,525 Fund Balance-January 1 51,182 189,719 68,933 71,258 67,727 196,457 187,470 Fund Balance-December 31 $ 46,447 $ 200,906 $ 50,505 $ 106,762 $ 46,044 $ 176,603 $ 202,995 86 D-1 Park and Taxable A Taxable B Recreational Housing Housing Improvement Refunding D Housing Redevelopment Housing Improvement Improvement Revolving Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Totals 1993 1995 1997 1997 1999 1999 1999 2000 1999 $ 198,510 $ $ - $ - $ - $ - $ 12,713 $ 283,202 $ 281,068 31,414 - - 2,044 44,974 44,954 98,618 - 173,393 134,240 251,126 - 657,377 273,079 2,736 3,768 3,326 3,072 1,305 6,625 2,488 53,569 41,864 232,660 102,386 3,326 176,465 135,545 257,751 17,245 1,039,122 640,965 165,000 35,000 115,000 40,000 - - 720,000 1,340,000 78,003 56,477 97,926 122,558 121,531 178,749 37,923 992,295 728,941 _ 300 150 150 152 200 137 138 3,327 3,017 243,303 91,627 213,076 162,710 121,731 178,886 38,061 1,715,622 2,071,958 (10,643) 10,759 (209,750) 13,755 13,814 78,865 (20,816) (676,500) (1,430,993) 95,000 263,000 186,961 348,000 1,009,000 225,000 - 225,000 215,600 34,000 39,000 164,211 225,000 - - - 95,000 870,000 1,614,772 (10,643) 10,759 15,250 13,755 13,814 78,865 74,184 193,500 183,779 198,320 105,891 171,811 126,914 76,203 94,209 19,566 1,625,660 1,441,881 $ 187,677 $ 116,650 $ 187,061 $ 140,669 $ 90,017 $ 173,074 $ 93,750 $ 1,819,160 $ 1,625,660 87 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. 88 — CITY OF HOPKINS, MINNESOTA E CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31,2000 With Comparative Totals for December 31, 1999 Municipal Permanent Park State Aid Improvement Totals Improvements Construction Revolving 2000 1999 - ASSETS Cash and investments $ 124,187 $ 2,263,865 $ 1,074,297 $ 3,462,349 $ 3,013,595 Special assessments receivable - - 1,968,660 1,968,660 2,243,626 Accounts receivable - 1,043 61,251 62,294 95,182 Accrued interest receivable 1,720 31,777 10,375 43,872 50,022 Due from other funds - - 419,435 419,435 177,718 Due from other governments - 321,819 - 321,819 238,218 Total Assets $ 125,907 $ 2,618,504 $ 3,534,018 $ 6,278,429 $ 5,818,361 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ - $ 2,662 $ 79,529 $ 82,191 $ 8,867 Retainage payable - 3,838 20,425 24,263 54,214 Deferred revenue - 287,295 1,961,953 2,249,248 2,232,189 Total Liabilities - 293,795 2,061,907 2,355,702 2,295,270 Fund Balance: _ Unreserved: Designated for street improvements - 2,324,709 1,472,111 3,796,820 3,487,890 Undesignated 125,907 - - 125,907 35,201 _ Total Fund Balance 125,907 2,324,709 1,472,111 3,922,727 3,523,091 Total Liabilities and Fund Balance $ 125,907 $ 2,618,504 $ 3,534,018 $ 6,278,429 $ 5,818,361 89 CITY OF HOPKINS,MINNESOTA E-1 - CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND _ CHANGES IN FUND BALANCE Year Ended December 31,2000 _ With Comparative Totals for Year Ended December 31, 1999 Municipal Permanent Park State Aid Improvement Totals Improvements Construction Revolving 2000 1999 Revenues: - Special assessments $ - $ - $ 429,866 $ 429,866 $ 585,099 Intergovernmental: State of Minnesota - 210,109 339,150 549,259 1,042,881 Charges for services 139,315 - - 139,315 6,200 Investment earnings 4,699 177,008 47,208 228,915 97,005 Total Revenues 144,014 387,117 816,224 1,347,355 1,731,185 Expenditures: Projects 25,000 15,000 15,148 55,148 35,799 Street improvements - 143,396 336,538 479,934 1,034,037 Environmental - - 43,447 43,447 - Alley reconstruction - - 77,882 77,882 75,441 -- Total Expenditures 25,000 158,396 473,015 656,411 1,145,277 Excess of revenues over expenditures 119,014 228,721 343,209 690,944 585,908 Other Financing Sources(Uses) Proceeds from bond issuance - - - - 850,000 _ Operating transfers from Enterprise Funds - - - - 177,718 Operating transfers to Skate Park (28,308) - - (28,308) - Operating transfers to Debt Service- 1992 - - (263,000) (263,000) (186,961) _ Total Other Financing Sources(Uses) (28,308) - (263,000) (291,308) 840,757 Excess of revenues and other financing sources _ over expenditures and other financing uses 90,706 228,721 80,209 399,636 1,426,665 Fund Balance-January 1 35,201 2,095,988 1,391,902 3,523,091 2,096,426 Fund Balance-December 31 $ 125,907 $ 2,324,709 $ 1,472,111 $ 3,922,727 $ 3,523,091 90 CITY OF HOPKI NS, 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 91 CITY OF HOPKINS,MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31,2000 With Comparative Totals for December 31, 1999 Water Sewer Refuse Storm Sewer - ASSETS Utility Utility Utility Utility Current assets: Cash and cash equivalents $ 1,766,193 $ 1,171,340 $ 589,822 $ 441,936 - Accounts receivable 133,058 114,159 48,077 58,866 Accrued interest receivable 24,210 17,778 8,187 12,273 Due from other governments Inventory 14,065 9,585 1,043 - - Prepaid expenses Total current assets 1,937,526 1,312,862 647,129 513,075 Property and equipment _ Land and land improvements 16,447 5,150 - 26,800 Buildings and structures 44,486 - 302,727 - Distribution system 6,170,246 5,395,449 2,584 6,571,400 Water meters 309,318 - Machinery and equipment 234,058 301,153 422,555 10,830 Construction in progress 975,635 - - 585,101 Total property and equipment 7,750,190 5,701,752 727,866 7,194,131 Less accumulated depreciation 3,108,466 2,377,250 256,573 1,095,032 Net property and equipment 4,641,724 3,324,502 471,293 6,099,099 Other Assets: Long-term receivable-Metro Waste Control Comm. - - _ _ Restricted cash and cash equivalents-debt service - - - 250,000 Total other assets - - - 250,000 Total Assets $ 6,579,250 $ 4,637,364 $ 1,118,422 $ 6,862,174 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable $ 81,882 $ 139,900 $ 37,683 $ 20,679 - Compensated absences payable 33,241 44,781 12,594 4,030 Due to other funds - - - 393,398 Due to other governments 253 20,000 4,004 - Deferred revenue - Accrued interest payable - - - 44,808 Bonds payable 111,500 - - 230,000 Total Current Liabilities 226,876 204,681 54,281 692,915 Long-term Liabilities: Deferred revenue Advance from other funds(net of current portion) Bonds payable(net of current portion) 1,948,500 - - 3,185,000 Total Long-term Liabilities 1,948,500 - - 3,185,000 Total Liabilities 2,175,376 204,681 54,281 3,877,915 Fund Equity: - Contributed capital-governmental grant - 472,684 - Contributed capital Retained Earnings: - Reserved for debt service - - - 250,000 Unreserved 4,403,874 3,959,999 1,064,141 2,734,259 Total Retained Earnings 4,403,874 3,959,999 1,064,141 2,984,259 _ Total Fund Equity 4,403,874 4,432,683 1,064,141 2,984,259 Total Liabilities and Fund Equity $ 6,579,250 $ 4,637,364 $ 1,118,422 $ 6,862,174- 92 -- F Pavilion/ Housing Totals Ice Arena Art Center Skate Park Authority $ 2000 r9,T97-- 63,656 $ 77,708 $ 22,938 $ 27,446 $ 4,161,039 $ 3,372,286 25,350 409 - 756 380,675 516,020 871 1,063 316 - 64,698 57,006 5,498 - - - 5,498 15,385 - 24,693 24,763 6,295 6,295 6,199 95,375 79,180 23,254 34,497 4,642,898 3,991,659 300,000 - - 348,397 321,597 2,363,266 3,820,618 30,381 - 6,561,478 6,531,097 52,726 - - - 18,192,405 16,944,330 - - - - 309,318 159,402 66,913 27,985 - - 1,063,494 1,100,909 - - 1,560,736 442,671 2,482,905 4,148,603 30,381 - 28,035,828 25,500,006 529,607 239,831 3,038 - 7,609,797 7,187,481 1,953,298 3,908,772 27,343 - 20,426,031 18,312,525 26,421 250,000 250,000 250,000 276,421 $ 2,048,673 $ 3,987,952 $ 50,597 $ 34,497 $ 25,318,929 $ 22,580,605 $ 12,549 $ 21,530 $ 726 $ 46,762 $ 361,711 $ 155,035 8,208 22,425 349 - 125,628 109,348 - - 393,398 177,718 - - 24,257 24,717 980 150,494 - - 151,474 100,980 - - 44,808 44,808 - - 341,500 205,000 21,737 194,449 1,075 46,762 1,442,776 817,606 - - - 26,421 872,868 - - 872,868 894,347 - - - 5,133,500 3,415,000 872,868 - - 6,006,368 4,335,768 21,737 1,067,317 1,075 46,762 7,449,144 5,153,374 500,000 - - 972,684 972,684 2,085,025 3,320,618 - - 5,405,643 5,405,643 _ - - - - 250,000 250,000 (58,089) (899,983) 49,522 (12,265) 11,241,458 10,798,904 (58,089) (899,983) 49,522 (12,265) 11,491,458 11,048,904 2,026,936 2,920,635 49,522 (12,265) 17,869,785 17,427,231 $ 2,048,673 $ 3,987,952 $ 50,597 $ 34,497 $ 25,318,929 $ 22,580,605 93 CITY OF HOPKINS,MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN RETAINED EARNINGS Year Ended December 31,2000 With Comparative Totals for Year Ended December 31, 1999 Water Sewer Refuse Utility Utility Utility - Operating revenues: Charges for services $ 1,036,146 $ 1,418,782 $ 479,431 Admissions and fees - - 81,883 - Rental Leases 15,052 - Other 14,568 12,157 2,876 _. Total Operating Revenues 1,065,766 1,430,939 564,190 Operating expenses(excluding depreciation) Salaries and employee benefits 300,300 174,439 191,998 Materials,supplies and services 378,775 235,072 294,421 Disposal costs - 728,810 107,025 Total Operating Expenses(excluding depreciation) 679,075 1,138,321 593,444 Operating income(loss)before depreciation expense 386,691 292,618 (29,254) Depreciation expense 246,944 96,885 31,693 Operating income(loss) 139,747 195,733 (60,947) Nonoperating revenue(expense) Interest income 106,312 96,528 36,629 Interest/fiscal agent expense (75) Intergovernmental grants - - 29,602 Bond issuance expense (41,375) - - Other 2,875 32,517 4,350 Total nonoperating revenues(expenses) 67,737 129,045 70,581 Income before other financing sources(uses) 207,484 324,778 9,634 Other financing sources(uses) Operating transfer from Park Dedication fund - - - Operating transfer to PIR fund - - Total other financing sources(uses) - - Net income(loss) 207,484 324,778 9,634 Fund Equity Retained Earnings-January 1 4,196,390 3,635,221 1,054,507 Retained Earnings-December 31 $ 4,403,874 $ 3,959,999 $ 1,064,141 94 F-1 Storm Sewer Pavilion/ Art Skate Housing Totals Utility Ice Arena Center Park Authority 2000 1999 $ 660,340 $ - $ - $ - $ 222,322 $ 3,817,021 $ 3,603,707 33,171 9,562 56,818 - 181,434 176,453 205,625 45,306 - - 250,931 225,419 143,598 - - 158,650 160,855 1,436 8,530 789 70 3,229 43,655 65,172 661,776 247,326 199,255 56,888 225,551 4,451,691 4,231,606 23,991 144,360 227,637 25,352 52,198 1,140,275 1,031,549 _ 99,091 79,653 112,946 8,387 431,536 1,639,881 1,414,523 835,835 876,657 123,082 224,013 340,583 33,739 483,734 3,615,991 3,322,729 538,694 23,313 (141,328) 23,149 (258,183) 835,700 908,877 185,289 58,174 80,306 3,038 - 702,329 596,860 353,405 (34,861) (221,634) 20,111 (258,183) 133,371 312,017 39,981 4,321 5,208 1,103 2,269 292,351 159,355 (162,992) - (23,774) - - (186,841) (122,662) 143,070 172,672 37,687 (41,375) (40,815) - 4,326 - - 44,068 1,750 (123,011) 4,321 (14,240) 1,103 145,339 280,875 35,315 230,394 (30,540) (235,874) 21,214 (112,844) 414,246 347,332 28,308 - 28,308 - (177,718) 28,308 - 28,308 (177,718) 230,394 (30,540) (235,874) 49,522 (112,844) 442,554 169,614 2,753,865 (27,549) (664,109) - 100,579 11,048,904 10,879,290 $ 2,984,259 $ (58,089) $ (899,983) $ 49,522 $ (12,265) $ 11,491,458 $ 11,048,904 95 CITY OF HOPKINS, MINNESOTA _ ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS _ Year Ended December 31,2000 With Comparative Totals for Year Ended December 31, 1999 Water Sewer Refuse Utility Utility Utility Cash Flows from Operating Activities: _ Operating income(loss) $ 139,747 $ 195,733 $ (60,947) Adjustments to reconcile operating income(loss)to net cash provided by operating activities: Depreciation expense 246,944 96,885 31,693 (Increase)decrease in: Accounts and accrued interest receivable (56,638) 56,133 48,132 Due from other funds -- Due from other governments - Inventory (192) (2,061) 2,323 Prepaid expense - - 200 _ Due from Metropolitan Waste Control Commission - 26,421 - Accounts,compensated absences and accrued interest payable 36,009 142,844 11,424 Due to other funds (95,606) (75,963) - Due to other governments (357) - 37 Deferred revenue - (26,421) - Cash Provided by(used)Operating Activities 269,907 413,571 32,862 Cash Flows from Noncapital Financing Activities: Intergovernmental grants - - 29,602 Other contributions - _ Operating transfer in - _ _ Operating transfer out - _ _ Cash Provided by(used)Noncapital Financing Activities - - 29,602 Cash Flows from Capital and Related Financing Activities: Purchases of property and equipment (1,198,167) (766,424) (28,738) Sale of property and equipment 2,875 32,517 4,350 Proceeds from issuance of bonds 2,060,000 - - Interest and other payments (41,450) - - Bond payments - - Cash Provided by(used)in Capital and Related Financing Activities 823,258 (733,907) (24,388) -- Cash Provided by Investing Activities-interest received 106,312 96,528 36,629 Increase(decrease)in Cash and Cash Equivalents 1,199,477 (223,808) 74,705 Cash and Cash Equivalents-January 1 566,716 1,395,148 515,117 Cash and Cash Equivalents-December 31 $ 1,766,193 $ 1,171,340 $ 589,822 Cash and Cash Equivalents Components: Cash and Cash Equivalents 1,766,193 1,171,340 589,822 _ Restricted Cash and Cash Equivalents - - - Total Cash and Cash Equivalents $ 1,766,193 $ 1,171,340 $ 589,822 96 ' F-2 Storm Sewer Pavilion/ Art Skate Housing Totals Utility Ice Arena Center Park Authority 2000 1997- $ 353,405 $ (34,861) $ (221,634) $ 20,111 $ (258,183) $ 133,371 $ 312,017 185,289 58,174 80,306 3,038 - 702,329 596,860 59,000 (17,103) 2,401 (316) 36,045 127,654 (150,273) - 530,000 10,600 (713) - - - 9,887 24,089 _ _ - 70 204 (296) (96) (76) - 26,421 25,382 (4,897) (1,959) 5,785 1,075 32,675 222,956 24,177 387,249 - (21,479) - - 194,201 (527,380) (140) - - - (460) (53) 496 49,998 - - 24,073 25,600 990,646 3,894 (104,623) 23,908 (189,759) 1,440,406 860,547 - 143,070 172,672 37,687 4,326 - - 4,326 _ - - - 28,308 - 28,308 - _ (177,718) - 4,326 28,308 143,070 205,306 (140,031) (786,108) (4,503) (1,515) (30,381) - (2,815,836) (967,666) - - 39,742 1,750 - - 2,060,000 1,504,185 (162,992) - (23,774) - - (228,216) (122,662) (205,000) - - - - (205,000) (140,000) (1,154,100) (4,503) (25,289) (30,381) - (1,149,310) 275,607 - 39,981 4,321 5,208 1,103 2,269 292,351 159,355 (123,473) 3,712 (120,378) 22,938 (44,420) 788,753 1,155,478 815,409 59,944 198,086 - 71,866 3,622,286 2,466,808 $ 691,936 $ 63,656 $ 77,708 $ 22,938 $ 27,446 $ 4,411,039 $ 3,622,286 441,936 63,656 77,708 22,938 27,446 4,161,039 3,372,286 250,000 - - - - 250,000 250,000 $ 691,936 $ 63,656 $ 77,708 $ 22,938 $ 27,446 $ 4,411,039 $ 3,622,286 97 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. —' 98 — CITY OF HOPKINS, MINNESOTA G INTERNAL SERVICE FUND BALANCESHEET December 31,2000 With Comparative Totals for December 31, 1999 2000 1999 _ Equipment Equipment Replacement Replacement ASSETS Current assets: Cash and cash equivalents $ 1,478,190 $ 1,444,124 Accounts receivable 754 457 Accrued interest receivable 13,718 23,286 Total current assets 1,492,662 1,467,867 Property and equipment Machinery and equipment 4,446,479 4,124,051 Total property and equipment 4,446,479 4,124,051 Less accumulated depreciation (2,709,845) (2,025,874) Net property and equipment 1,736,634 2,098,177 Total Assets $ 3,229,296 $ 3,566,044 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable $ 99 $ 2,361 Fund Equity: Contributed capital 2,687,227 3,236,362 Retained Earnings: Unreserved 541,970 327,321 Total Retained Earnings 541,970 327,321 Total Fund Equity 3,229,197 3,563,683 Total Liabilities and Fund Equity $ 3,229,296 $ 3,566,044 99 CITY OF HOPKINS, MINNESOTA G-1 INTERNAL SERVICE FUND _ STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 2000 With Comparative Totals for December 31, 1999 2000 1999 Equipment Equipment Replacement Replacement Operating revenues: Charges for services $ 487,945 $ 485,400 Operating expenses(excluding depreciation): Materials, supplies and services 19,996 18,852 Operating income before depreciation 467,949 466,548 Depreciation expense 359,401 339,808 Operating income 108,548 126,740 Nonoperating revenue: Investment earnings 63,501 43,419 Other 42,600 14,677 Total nonoperating revenues 106,101 58,096 Income before other financing sources 214,649 184,836 Operating transfer in - 2,500 Net Income 214,649 187,336 Fund Equity: Retained earnings- January 1 327,321 139,985 Retained earnings - December 31 $ 541,970 $ 327,321 100 CITY OF HOPKINS, MINNESOTA G-2 INTERNAL SERVICE FUND STATEMENT OF CASH FLOWS Year Ended December 31,2000 With Comparative Totals for Year Ended December 31, 1999 2000 1999 Equipment Equipment Replacement Replacement Cash Flows from Operating Activities: Operating income $ 108,548 $ 126,740 Adjustments to reconcile operating income(loss)to net cash provided by operating activities: _ Depreciation expense 359,401 339,808 (Increase)decrease in: Accounts and accrued interest receivable 9,271 (13,473) Accounts,compensated absences and accrued interest payable (2,262) (6,353) Cash Provided by Operating Activities 474,958 446,722 Cash Flows from Noncapital Financing Activities: Operating transfer in - 2,500 Cash Provided by Noncapital Financing Activities - 2,500 Cash Flows from Capital and Related Financing Activities: Purchases of property and equipment (546,993) (202,784) Sale of property and equipment 42,600 14,677 Cash(used in)Capital and Related Financing Activities (504,393) (188,107) Cash Provided by Investing Activities-interest received 63,501 43,419 Increase in Cash and Cash Equivalents 34,066 304,534 Cash and Cash Equivalents-January 1 1,444,124 1,139,590 Cash and Cash Equivalents-December 31 $ 1,478,190 $ 1,444,124 101 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT AGENCY FUND 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. 102 H CITY OF HOPKINS, MINNESOTA NORTHWEST METRO DRUG TASK FORCE AGENCY FUND COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 2000 Balance Balance January 1, December 31, W Metro Drug Task Force Operating Fund 2000 Additions Deductions 2000 ASSETS Cash and cash equivalents $ - $ 175,000 $ - $ 175,000 LIABILITIES Due to NW Metro Drug Task Force $ - $ 175,000 $ - $ 175,000 103 CITY OF HOPKI NS, 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. _ 104 — I CITY OF HOPKINS, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS December 31, 2000 With Comparative Amounts for December 31, 1999 2000 1999 GENERAL FIXED ASSETS: Land $ 4,104,085 $ 3,970,233 Buildings 2,568,286 2,555,855 Improvements other than buildings 17,197,695 16,545,533 Vehicles 210,451 288,719 Machinery and equipment 1,523,067 1,505,945 Total General Fixed Assets $ 25,603,584 $ 24,866,285 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 1,942,454 2,377,923 Special Revenue Funds 4,692,857 4,659,150 Capital Projects Funds 6,680,217 6,459,413 Special Assessments 6,493,883 5,978,673 Construction in progress 403,047 - Total Investment in General Fixed Assets $ 25,603,584 $ 24,866,285 105 I-] CITY OF HOPKINS, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP w SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 2000 Buildings Improvements Equipment and Otherthan and Function and Activity Total Land Structures Buildines Vehicles Administration $ 1,908,877 $ 1,181,828 $ - $ 544,054 $ 182,995 Finance 64,949 - - - 64,949 Government buildings 680,163 - 612,266 - 67,897 Community services 58,118 - - - 58,118 Community development 1,425,111 1,410,799 - - 14,312 Activity center 912,002 - 841,370 - 70,632 Police 450,442 - 20,649 11,470 418,323 Fire 82,504 - - - 82,504 Public works 17,055,562 422,940 788,748 15,406,052 437,822 Parks 2,940,856 1,088,518 305,253 1,211,119 335,966 Park Improvements 25,000 - - 25,000 - Total $ 25,603,584 $ 4,104,085 $ 2,568,286 $ 17,197,695 $ 1,733,518 106 _ 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 31,2000 General General Fixed Assets Fixed Assets January 1, December 31, — Function and Activity 2000 Additions Deductions 2000 Administration $ 1,898,170 $ 10,707 $ - $ 1,908,877 Finance 64,949 - - 64,949 Government buildings 674,584 5,579 - 680,163 Community services 58,118 - - 58,118 Community development 1,425,111 - - 1,425,111 Activity center 912,002 - - 912,002 Police 476,857 26,783 53,198 450,442 Fire 96,262 - 13,758 82,504 Public works 16,351,228 748,636 44,302 17,055,562 Parks 2,909,004 31,852 - 2,940,856 Park Improvements - 25,000 - 25,000 Total $ 24,866,285 $ 848,557 $ 111,258 $ 25,603,584 107 J CITY OF HOPKINS, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP STATEMENT OF GENERAL LONG-TERM DEBT December 31,2000 With Comparative Amounts for December 31, 1999 2000 1999 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG-TERM DEBT: Amount available in debt service funds $ 1,819,160 $ 1,625,660 Amount available in special revenue funds Amount to be provided by tax levies, tax increments, annual fees and proceeds of real estate sales 15,374,383 16,287,883 Total Available and to be Provided $ 17,193,543 $ 17,913,543 GENERAL LONG-TERM DEBT PAYABLE: General obligation redevelopment bonds payable $ 15,218,543 $ 15,758,543 Special assessment debt with governmental commitment 1,975,000 2,155,000 Total General Long-Term Debt Payable $ 17,193,543 $ 17,913,543 108 _ 601 S3lna3HDS IVIDNVN13 1b1N3W3lddnS - DII NOUDIS - 12]OdRl IVIDNVNl3 IVnNNd 3AISN3H3&JVNOD V-LOS3NNIW 'SNI)IdOH 10 Alli CITY OF HOPKINS, MINNESOTA _ SCHEDULE OF BONDS PAYABLE December 31, 2000 Final Issue Maturity Date Date Interest Rates& Dates GENERAL OBLIGATION BONDS 1999A Taxable Housing Improvement 5-01-99 02-01-21 5.75 - 7.10% (2/1; 8/1) 1999B Taxable Improvement Area Bonds 08-1-99 02-01-21 6.0 - 7.375% (2/1; 8/1) 110 QafimixoD III (lzoz) 000`9Zz — (ozoz) 000`01 z (61OZ) 00o`S61 (81oz) 000`081 — (L i OZ) 000`OL 1 (91OZ) 000`091 (S I OZ) 000`OS I — (t,tOZ) 000`Otli (£ioz) 000`0£1 (ZIOZ) 000`0ZI — (i loz) 000`Si i (Oloz) 000`011 (60OZ) 000`001 (80oZ) 000`S6 (LOOZ) 000`06 _ (9002) 000`S8 (SOOZ) 000`08 (vooz) 000`SL _ (£OOz) 000`OL $ 000`S95`Z $ - $ o00`995`Z $ (zooz) 000`99 (Izoz) 00o`SZi (ozoZ) 000`9 i i — (61OZ) 000`011 (81oz) 000`001 (L i OZ) 000`S6 — (91OZ) 000`06 (SiOZ) 000`98 (bioZ) 000`08 — (£ioZ) 000`SL (ZIOZ) 000`OL (i Ioz-Otoz) o00`S9 — (60OZ) 000`09 (80OZ-LOOZ) 000`99 (9002) 000`09 — (900Z-t,00Z) 000`9t, $ 000`S9V I $ - $ 00o`S9t"I $ (£OOZ-ZOOZ) 000`Ot? IOOZ Butpuvis;no pa.njag pansst sjuaw,, vd IL'taaS u► anCI puu Ienuud — Iud'aulad paziaoglnd I alnpagaS e + CITY OF HOPKINS, MINNESOTA SCHEDULE OF BONDS PAYABLE — December 31, 2000 Final Issue Maturity Date Date Interest Rates& Dates 1997A Tax Increment 1-01-97 02-01-12 4.4 - 5.25% (2/1; 8/1) 1997B Taxable Housing Improvement Area Bonds 05-15-97 02-01-18 6.7 - 7.85% (2/1; 8/1) 1996C Tax Increment 10-01-96 02-01-16 5.70% (2/1; 8/1) 112 Schedule l Authorized Principal Annual and Due in Serial Payments Issued Retired Outstanding 2001 120,000 (2001) $ 2,240,000 $ 310,000 $ 1,930,000 $ 120,000 125,000 (2002) 135,000 (2003) 1.40,000 (2004) 145,000 (2005) 155,000 (2006) 160,000 (2007) 170,000 (2008) 180,000 (2009) 190,000 (2010) 200,000 (2011) 210,000 (2012) 45,000 (2001) $ 1,700,000 $ 75,000 $ 1,625,000 $ 45,000 50,000 (2002-2003) 55,000 (2004) _ 60,000 (2005) 65,000 (2006) 70,000 (2007) 75,000 (2008) 80,000 (2009) 85,000 (2010) 95,000 (2011) 100,000 (2012) 110,000 (2013) 115,000 (2014) 125,000 (2015) 135,000 (2016) 150,000 (2017) 160,000 (2018) 85,000 (2012) $ 500,000 $ - $ 500,000 $ - 95,000 (2013) 100,000 (2014) 105,000 (2015) 115,000 (2016) 113 CONTINUED CITY OF HOPKINS, MINNESOTA SCHEDULE OF BONDS PAYABLE December 31, 2000 Final Issue Maturity Date Date Interest Rates& Dates 1996D Taxable Tax Increment 10-01-96 02-01-11 7.00- 7.70% (2/1; 8/1) 1995 Housing Improvement Area Bonds 09-01-95 02-01-12 6.90 - 8.00% (2/1; 8/1) 1993C Redevelopment Refunding 10-15-93 02-01-09 4.60% (2/1; 8/1) 1993A Redevelopment Refunding 10-15-93 06-01-03 3.8 - 4.20% (6/1; 12/1) 114 QFI11NI. XOD S I t (£ooz) 000`0-vt (zooz) 000`05 I 000`551 $ 000`5bt, $ 000`069 $ 000`5£I`t $ (IOoZ) 000`551 — (60OZ) 000`569 — (800z) 00o`oS9 (LOOZ) 000`0£9 (9ooZ) o00`Szt, — (SOOZ) 000`0-vz (t,OOZ) 000`06 (£OOZ) 000`5L — (zooz) 000`09 000`05 $ 000`516`Z $ 000`091 $ 000`5L0`£ $ (IOoZ) 000`05 (Z I Oz) 000`56 _ (t IOz) 000`58 (OIoz) 000`08 (6002) 000`OL _ (8002) 000`59 (LOOZ) 000`09 (9ooz) 000`55 _ (Booz) 000`05 (bOOZ-£oOZ) 000`5t' (zooz) 000`0b — 000`S£ $ 000`SZL $ 000`06 $ 000`518 $ (t00Z) 000`5£ Q I OZ) 000,001 (o I OZ) 000`06 (60OZ) 000`58 — (8002) 000`08 (LOOZ) 000`9L (90OZ) 000`OL — (SOoZ) 000`59 (t,OoZ) 000`09 $ 000`089 $ - $ 000`089 $ (£ooZ) 000`55 — ION 5uipuuIsInp paula21 panssl sluaua,(ed IBIJOS ui anCl puu ILnuud — Iudiauiad paziioglnV I alnpauaS CITY OF HOPKINS, MINNESOTA SCHEDULE OF BONDS PAYABLE — December 31, 2000 Final Issue Maturity Date Date Interest Rates & Dates 1992 Redevelopment Taxable Bonds 02-01-92 02-01-06 7.6 - 8.10% (2/1; 8/1) 1993D Park and Recreational Facilities Refunding 10-15-93 02-01-11 4.60% (2/1; 8/1) TOTAL GENERAL OBLIGATION BONDS — SPECIAL ASSESSMENT BONDS: — General Obligation Improvement Bonds 1999D Improvement Revolving Bonds 08-01-99 02-01-10 4.00- 4.8% (2/1; 8/1) 1990 Improvement Revolving Bonds 03-01-90 02-01-01 6.7% (2/1; 8/1) 1992 Improvement Revolving Bonds 08-01-92 02-01-08 4.9 - 5.60% (2/1; 8/1) TOTAL SPECIAL ASSESSMENT BONDS 116 Schedule 1 Authorized Principal Annual and Due in Serial Payments Issued Retired Outstanding 2001 180,847 (2001) $ 2,888,543 $ 2,135,000 $ 753,543 $ 180,847 161,502 (2002) 148,138 (2003) 135,620 (2004) 96,152 (2005) 31,284 (2006) 160,000 (2001) $ 2,065,000 $ 450,000 $ 1,615,000 $ 160,000 - 155,000 (2002-2003) 150,000 (2004-2006) 145,000 (2007-2008) 140,000 (2009) 135,000 (2010) 130,000 (2011) $ 19,128,543 $ 3,910,000 $ 15,218,543 $ 745,847 70,000 (2001-2002) $ 850,000 $ - $ 850,000 $ 70,000 75,000 (2003) 80,000 (2004-2005) 85,000 (2006) 90,000 (2007) 95,000 (2008) 100,000 (2009) 105,000 (2010) 45,000 (2001) $ 485,000 $ 440,000 $ 45,000 $ 45,000 135,000 (2001-2008) $ 2,000,000 $ 920,000 $ 1,080,000 $ 135,000 $ 3,335,000 $ 1,360,000 $ 1,975,000 $ 250,000 117 CONTINUED CITY OF HOPKINS, MINNESOTA SCHEDULE OF BONDS PAYABLE — December 31, 2000 Final Issue Maturity Date Date Interest Rates&Dates PROPRIETARY FUNDS BONDS: — General Obligation Revenue Bonds: 2000 Water Revenue Bonds 4-1-00 02-01-15 4.2 - 5.5% (2/1; 8/1) 1999C Storm Sewer Revenue Bonds 8-1-99 02-01-15 4.0- 5.0% (2/1; 8/1) 118 Schedule 1 Authorized Principal Annual and Due in Serial Payments Issued Retired Outstanding 2001 115,000 (2001) $ 2,060,000 $ - $ 2,060,000 $ 115,000 100,000 (2002) 105,000 (2003) 110,000 (2004) 115,000 (2005) 120,000 (2006) 125,000 (2007) 130,000 (2008) 140,000 (2009) 145,000 (2010) 155,000 (2011) 160,000 (2012) 170,000 (2013) 180,000 (2014) 190,000 (2015) 70,000 (2001) $ 1,545,000 $ 55,000 $ 1,490,000 $ 70,000 75,000 (2002) 80,000 (2003-2004) 85,000 (2005) 90,000 (2006) 95,000 (2007) 100,000 (2008-2009) 105,000 (2010) 110,000 (2011) 115,000 (2012) 120,000 (2013) 130,000 (2014) 135,000 (2015) 119 CONTINUED CITY OF HOPKINS, MINNESOTA SCHEDULE OF BONDS PAYABLE December 31, 2000 Final Issue Maturity Date Date Interest Rates &Dates 1993 Storm Sewer Utility Refunding Bonds 10-15-93 02-01-10 4.60% (2/1; 8/1) TOTAL REVENUE BONDS TOTAL CITY BONDS 120 Schedule 1 Authorized Principal Annual and Due in Serial Payments Issued Retired Outstanding 2001 160,000 (2001-2002) $ 2,445,000 $ 520,000 $ 1,925,000 $ 160,000 165,000 (2003) 180,000 (2004) 185,000 (2005) 190,000 (2006) 205,000 (2007) 215,000 (2008) 225,000 (2009) 240,000 (2010) $ 6,050,000 $ 575,000 $ 5,475,000 $ 345,000 $ 28,513,543 $ 5,845,000 $ 22,668,543 $ 1,340,847 121 CITY OF HOPKINS,MINNESOTA Schedule 2 SCHEDULE OF DEBT SERVICE REQUIREMENTS -ALL FUNDS December 31,2000 Total General Obligation Bonds Revenue Bonds Principal Interest Princi al InterestPrincipal Interest 2001 1,340,847 1,399,523 995,847 1,110,908 345,000 288,615 2002 1,386,502 1,318,248 1,051,502 1,079,103 335,000 239,145 _ 2003 1,473,138 1,269,613 1,123,138 1,045,785 350,000 223,828 2004 1,380,620 1,217,661 1,010,620 1,010,089 370,000 207,572 2005 1,531,152 1,108,561 1,146,152 918,236 385,000 190,325 2006 1,706,284 918,538 1,306,284 746,390 400,000 172,148 2007 1,935,000 762,040 1,510,000 609,221 425,000 152,819 2008 2,010,000 660,178 1,565,000 527,898 445,000 132,280 2009 1,975,000 556,728 1,510,000 446,053 465,000 110,675 2010 1,240,000 471,283 750,000 383,406 490,000 87,877 _ 2011 1,165,000 401,649 900,000 332,289 265,000 69,360 2012 835,000 341,367 560,000 285,862 275,000 55,505 2013 820,000 291,004 530,000 250,079 290,000 40,925 2014 605,000 247,418 295,000 222,108 310,000 25,310 2015 930,000 199,635 605,000 191,035 325,000 8,600 -- 2016 340,000 158,130 340,000 158,130 2017 575,000 125,229 575,000 125,229 2018 260,000 94,274 260,000 94,274 2019 485,000 66,807 485,000 66,807 2020 115,000 45,039 115,000 45,039 2021 560,000 20,478 560,000 20,478 $ 22,668,543 $ 11,673,403 $ 17,193,543 $ 9,668,419 $ 5,475,000 $ 2,004,984 122 Schedule 3 CITY OF HOPKINS, MINNESOTA SCHEDULE OF FUNDING AVAILABLE AND FUNDS REQUIRED FOR DEBT SERVICE December 31, 2000 Total CASH AND INVESTMENTS $ 2,031,809 DEFERRED TAX LEVIES: Levy/Payable Years: 2000/01 342,000 2001/02 342,000 2002/03 348,000 2003/04 350,000 2004/05 241,000 2005/06 235,000 2006/07 221,000 2007/08 175,000 2008/09 154,000 2009/10 112,000 Total Deferred Tax Levies 2,520,000 Deferred Tax Increments 8,703,000 Special Assessment Receivable 13,642,074 Operating Revenues 7,479,984 FUND AVAILABLE 34,376,867 BONDS/FUTURE INTEREST PAYABLE Bonds 22,668,543 Future interest 11,673,403 — FUNDS REQUIRED 34,341,946 EXCESS FUNDING $ 34,921 123 Schedule 4 CITY OF HOPKINS, MINNESOTA SCHEDULE OF INSURANCE IN FORCE Effective January 1, 2000 through December 31, 2000 — Kind Type of Coverage All Perils Coverage All buildings, personal property, and $20,688,176 — (Blanket Limit) property in the open as filed with the ($5,000 deductible) League of Minnesota Cities Insurance Trust — Comprehensive Municipal Bodily Injury 1,000,000 — Liability Insurance Coverage Property Damage 1,000,000 Including Public Officials Personal Injury 1,000,000 ($5,000 deductible) — Business Auto Liability Liability 1,000,000 — Personal Injury Protection Basic Uninsured& Underinsured Motorist 1,000,000 (Comprehensive and Collision - — $5,000 Deductible) Business Equipment Coverage All Risk, Subject to Company Forms — ($5,000 Deductible) Workers' Compensation Employees Statutory _ Employer 100,000 Volunteer Firefighters AD &D Catastrophic Loss 12,670 _ Blanket Accident Coverage Weekly income 65 Boilers& Machinery Liability Limit($5,000 Deductible) 5,000,000 Public Employee Blanket Bond Faithful Performance 100,000 ($5,000 Deductible) — Open Meeting Law Defense Cost Per Lawsuit, Per Official 50,000 Reimbursement Agreement — 124 SZ1 NOILAS lVD11SUVIS _ III NOUDIS _ INOAN IVIDNVNl3 Ibf1NNd 3nISN3H3NcJWOD VILOSINNIW 'SNDIdOH JO A-LD (This page intentionally left blank) — 126 Table I CITY OF HOPKINS, MINNESOTA GOVERNMENTAL FUND TYPES - EXPENDITURES BY FUNCTION Years 1991 Through 2000 (Amounts expressed in thousands) (Unaudited) Fiscal General Public Community Public Debt and Capital Year Government Safe1y Development Works Recreation Other Outlav Total 1991 $ 1,370 $ 2,242 $ 750 $ 1,534 $ 144 $ 1,907 $ 6,452 $ 14,399 1992 1,439 2,221 629 1,454 99 2,122 3,954 11,918 1993 1,517 2,325 741 1,536 132 1,277 2,599 10,127 1994 1,610 2,481 956 1,574 113 1,466 4,717 12,917 1995 1,794 2,572 1,707 1,559 127 1,420 2,335 11,514 1996 1,240 2,727 634 1,587 146 1,632 4,265 12,231 1997 1,255 2,807 1,535 1,518 317 3,767 11,922 23,121 1998 945 3,311 1,201 1,732 576 7,870 4,085 19,720 1999 938 3,401 1,176 1,732 716 2,096 6,931 16,990 2000 1,033 3,196 1,080 1,592 659 1,716 2,665 11,941 Note: Includes General, Special Revenue, Debt Service and Capital Projects Funds. 127 Table II CITY OF HOPKINS, MINNESOTA GOVERNMENTAL FUND TYPES - REVENUES BY SOURCE Years 1991 Through 2000 - (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 Propea Revenue Permits Forfeitures Total 1991 $ 5,358 $ 3,425 $ 1,105 $ 721 $ 185 $ 137 $ 10,931 - 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 113312 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 Note: ' Includes General, Special Revenue, Debt Service and Capital Projects Funds. (1) Includes only interest earnings (2) Includes Oaks of Mainstreet real estate sales. " 128 - Table III CITY OF HOPKINS,MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Years 1991 Through 2000 (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 1991 $ 3,807,298 $ 3,565,263 93.6 $ (25,880) $ 3,539,383 93.0% 1992 3,827,223 3,632,638 94.9 3,106 3,635,744 95.0% 1993 3,925,100 3,840,652 97.8 (10,395) 3,830,257 97.6% 1994 3,987,216 3,882,651 97.4 (36,765) 3,845,886 96.5% 1995 3,975,854 3,903,806 98.2 (43,761) 3,860,045 97.1% 1996 4,178,410 4,085,963 97.7 21,978 4,107,941 98.3% 1997 4,217,627 4,166,717 98.8 29,181 4,195,898 99.5% 1998 4,232,961 4,203,506 99.3 34,612 4,238,118 100.1% 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% (1)Tax levy is net of Homestead and Agricultural Credit Aid. 129 Table 1V CITY OF HOPKINS, MINNESOTA TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY Levy Years 1991 Through 2000 (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 1991 $ 17,345 $ 609,292 $ 241 $ 5,066 $ 17,585 $ 614,358 2.9 1992 16,088 594,796 243 5,066 16,331 599,862 2.7 1993 16,034 593,160 243 5,066 16,277 598,226 2.7 1994 15,314 591,809 269 5,627 15,583 597,436 2.6 1995 15,350 602,136 278 6,044 15,628 608,180 2.6 1996 15,772 621,378 285 6,188 16,057 627,566 2.6 1997 14,734 662,246 250 6,254 14,984 668,500 2.2 1998 14,524 725,856 271 7,754 14,795 733,610 2.0 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 2.0 130 - Table V CITY OF HOPKINS, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Years 1991 Through 2000 (Unaudited) Payable Fiscal Metro Year C4 School Coun1y Council Other 1 Total 1991 22.72 53.66 30.11 7.37 1.08 114.94 1992 23.64 61.30 34.33 6.00 0.64 125.91 - 1993 26.36 65.18 35.84 6.04 1.59 135.01 1994 27.50 67.34 37.44 6.23 1.28 146.02 1995 27.19 75.08 37.45 6.36 2.33 148.41 1996 27.65 61.88 35.52 4.93 3.05 133.03 1997 30.46 61.06 38.39 5.65 2.50 138.06 1998 32.44 58.94 40.99 6.04 3.35 141.76 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 (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. 131 CITY OF HOPKINS, MINNESOTA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Years 1991 Through 2000 '— (Unaudited) Current Special Percentage of Assessment Current Special Current Collected Fiscal Becoming Due Assessments During Fiscal Period During Fiscal Period Collected Period 1991 274,155 242,454 88.4 1992 363,734 332,389 91.4 _ 1993 412,221 345,557 83.8 1994 491,094 462,454 94.2 1995 555,611 506,417 91.2 _ 1996 566,624 502,634 88.7 1997 523,252 424,691 81.2 1998 486,705 465,226 95.6 1999 569,282 530,137 93.1 2000 1,105,792 1,035,393 93.6 132 _ 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 537 53,809 211,599 2,042,067 7,927 77,227 118,871 2,308,524 48,647 78,188 244,961 2,802,907 6,924 78,909 86,859 3,081,957 15,839 111,438 406,675 2,535,709 83,738 36,057 115,715 2,231,205 12,829 137,002 127,083 2,253,656 6,742 36,136 45,676 6,931,540 9,733 73,870 146,916 14,550,745 33,701 111,264 87,383 13,513,832 133 CITY OF HOPKINS,MINNESOTA RATIO OF NET BONDED DEBT TO TAX CAPACITY VALUE AND NET BONDED DEBT PER CAPITA Pay Years 1991 Through 2000 (Unaudited) — Tax Capacity — Value Gross Cash and Population After Fiscal Bonded Investments Year W Disparities Debt 2 on Hand/Escrowed — 1991 16,534 $ 15,098,819 $ 13,651,000 $ 1,074,837 1992 16,534 14,147,542 15,258,443 1,178,695 1993 16,534 13,100,726 15,622,343 (3) 1,302,870 1994 16,534 12,556,761 14,701,243 1,019,541 1995 16,534 12,910,496 14,605,143 932,467 1996 16,534 13,194,123 22,228,543 (4) 1,125,661 1997 16,665 11,936,742 23,418,543 (5) 1,617,274 1998 16,559 11,749,307 16,588,543 1,425,491 — 1999 16,887 12,526,355 21,533,543 1,625,660 2000 17,145 13,859,147 22,'68,543 1,781,809 (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. — 134 Table VII Debt Payable Ratio of From Net Bonded Net Enterprise Net Debt to Bonded and HRA Bonded Tax Capacity Debt per Revenues Debt Value Capita $ 3,131,000 $ 9,445,163 62.56 575 3,014,900 11,064,848 78.21 669 3,143,800 11,175,673 85.31 676 2,992,700 10,689,002 85.10 646 3,656,600 (b) 10,016,076 77.58 655 3,290,000 (b) 10,222,882 (a) 71.30 618 4,865,000 (b) 11,171,269 (a) 93.59 670 4,705,000 (b) 10,458,052 89.01 632 10,075,000 (b) 9,832,883 78.50 582 11,855,000 (b) 9,031,734 65.17 527 (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. 135 Table VIII CITY OF HOPKINS, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 2000 (Unaudited) MARKET VALUE $ 884,758,000 DEBT LIMIT 2%OF MARKET VALUE(Note A) $ 17,695,160 TOTAL BONDED DEBT $ 22,668,543 DEDUCTIONS (Note B): Tax Increment Bonds $ 7,223,543 Revenue Bonds 5,475,000 Housing Improvement Bonds 6,380,000 Special Assessment Bonds 1,975,000 21,053,543 Amount Available in Debt Service Funds 1,819,160 Total Deductions 22,872,703 TOTAL DEBT APPLICABLE TO DEBT LIMIT 0 LEGAL DEBT MARGIN $ 17,695,160 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. 136 Table IX CITY OF HOPKINS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT INCLUDING DEBT RATIOS December 31, 2000 (Unaudited) Net General Percentage Obligation Applicable City Share Det 1 to Cijy of Debt Direct Debt City of Hopkins $ 7,897,011 100.00% $ 7,897,011 Overlapping Debt Hennepin County 216,028,146 1.28 2,765,160 Independent School District#270(Hopkins) 41,330,781 14.98 6,191,351 Independent School District#283 (2) 12,033,074 0.41 49,336 Hennepin Suburban Park District 12,026,336 1.69 203,245 Metropolitan Council 115,003,645 0.64 736,023 Total Overlapping Debt 9,945,115 Total Direct and Overlapping Debt $ 17,842,126 _ Direct Overlapping Total Debt Ratios Debt Det Debt Ratio of Debt Per Capita(17,145 Population) $461 $580 $1,041 Ratio of Debt to Tax Capacity Valuation (after fiscal disparities)of$12,495,527 (3) 63.20% 79.59% 142.79% Ratio of Debt to Estimated Market Valuation of$884,758,000 0.89% 1.12% 2.01% (1)Excludes Revenue and Special Assessment Bonds (2)ISD 283 Debt figures are as of 12/31/98. No report of Outstanding Indebtedness as of 12/31/00 submitted. (3)Tax Capacity Values are based on payable 2000 figures. Source: County Auditor 137 Table X CITY OF HOPKINS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Years 1991 Through 2000 (Unaudited) — Percentage Total Total of Debt Debt General to General Year Principal Interest Service Expenditures(1) Expenditures — 1991 $ - $ 185,585 $ 185,585 $ 12,879,877 1.5% 1992 195,000 210,317 405,317 9,040,470 4.4 — 1993 190,000 293,470 483,470 8,893,367 5.4 1994 345,000 229,346 574,346 11,541,044 4.9 1995 340,000 231,467 571,467 10,129,132 5.6 1996 315,000 213,706 528,706 8,817,705 6 1997 345,000 195,453 540,453 19,377,504 2.8 1998 345,000 176,616 521,616 11,922,576 4.4 — 1999 345,000 159,057 504,057 14,936,841 3.4 2000 345,000 180,332 525,332 10,225,789 5.1 Note: All remaining bond issues are paid through tax increments, enterprise funds or housing fees. (1)Includes all governmental fund type expenditures except debt service. 138 — _ Table XI CITY OF HOPKINS, MINNESOTA _ REVENUE BOND COVERAGE WATER, SEWER AND STORM SEWER REVENUE BONDS Years 1991 Through 2000 (Unaudited) Net Fiscal Gross Operating Revenue Debt Service Coverage Year Revenue Expenses (1) Available Principal Interest Total Ratio 1991 (2) $ 340,952 $ (136,260) $ 477,212 $ 70,000 $ 178,415 $ 248,415 1.92 to 1 1992 433,475 122,200 311,275 75,000 174,191 249,191 1.79 to I 1993 560,295 87,893 472,402 80,000 169,638 249,638 1.89 to I 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 I 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 (1)Excludes depreciation and debt expense. (2)Beginning in 1991 only Storm Sewer issue outstanding. 139 Table XII CITY OF HOPKINS, MINNESOTA DEMOGRAPHIC STATISTICS Year 1991 Through 2000 (Unaudited) (2) (3) Fiscal (1) School Unemployment _ Year Population Enrollment Rate* 1991 16,534 7,373 5.8 1992 16,534 7,537 5.7 1993 16,534 7,980 3.0 1994 16,534 7,804 3.0 1995 16,534 7,942 2.9 1996 16,534 8,027 2.5 1997 16,665 8,036 2.4 1998 16,559 8,313 1.9 1999 16,887 8,367 2.8 — 2000 17,145 8,227 2.5 Sources: (1)Metropolitan Council (2) School districts within Hopkins — (3)Minnesota Department of Labor and Industry *Hennepin County — 140 Table XIII CITY OF HOPKINS, MINNESOTA CONSTRUCTION AND PROPERTY VALUE Years 1991 Through 2000 (Amounts expressed in thousands) (Unaudited) (1) (1) Commercial Residential (2) Construction Construction Property Value Fiscal Number of Year Value Units Value Commercial Residential Nontaxable 1991 3,246 208 2,275 184,878 417,311 52,187 1992 4,753 285 2,502 170,090 423,461 78,897 1993 5,401 238 3,578 159,533 420,190 78,897 1994 7,967 380 3,320 162,499 429,955 78,897 1995 3,567 289 11,082 159,540 442,910 78,897 1996 12,499 344 5,893 163,722 459,066 78,897 1997 7,672 121 13,162 175,193 489,029 78,897 1998 7,478 371 4,214 187,238 542,793 85,491 1999 32,791 493 10,037 204,988 582,540 85,491 2000 6,818 227 10,234 236,557 640,831 85,491 Sources: (1)City Community Development Department (2)City Assessor's Office 141 Table XIV CITY OF HOPKINS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 2000 — (Unaudited) Amount of Percentage Estimated _ Tax of Total Tax Tax City Taxpayer Type of Business Ca aci Ca aci Receives 1. Super Valu Grocery Warehouses 1,300,571 7.41% $ 315,128 — 2. Duke Realty Office/Warehouses 526,342 3.00% 127,532 3. St. Therese Apartments 384,288 2.19% 119,628 _ 4. Ramsgate Apartments Apartments 284,903 1.62% 88,690 5. Alliant Techsystems Office/Warehouse 243,297 1.39% 58,950 6. Westside Village Apartments 240,180 1.37% 74,768 _ 7. Greenfield(Phase I) Apartments 214,800 1.22% 66,867 8. Greenfield(Phase II) Apartments 214,800 1.22% 66,867 9. Edco Products, Inc. Office/Warehouse 212,401 1.21% 51,464 10. Auburn North Townhouses 204,336 1.16% 63,609 11. Gateway Foods Office/Warehouse 191,280 1.09% 46,347 12. Christian Salvesen Warehouse 176,762 1.01% 42,829 13. Thermotech Office/Warehouse 169,282 0.96% 41,017 — 14. Rosewood West Apartments 162,048 0.92% 50,445 15. Buffalo Associates Bank/Office 150,038 0.85% 36,354 16. Creekwood Estates Apartments 143,736 0.82% 44,745 — 17. Knollwood Towers West Apartments 130,992 0.75% 40,777 18. Oak Ridge Country Club Golf Course 126,714 0.72% 30,702 19. Reuter, Inc. Office/Warehouse 100,500 0.57% 24,351 — 20. Robert J. Lawrence Retail 86,652 0.49% 20,995 (Knox Lumber) Total 5,263,922 29.98% 1,412,065 — Total City 2000/2001 tax capacity= 17,559,320 100.00% — Notes: 1)Tax capacity is a percentage of total market value. For taxes payable in 2001 these class rates are 2.4% for apartments and 2.4%of first$150,000 with balance at 3.4% for commercial/industrial properties. — 2)The City of Hopkins receives approximately 24%of the total estimated tax for 2001, not including fiscal disparities and tax increment adjustments. 3)The estimated tax is based on the tax rates for payable 2001. 142 — _ Table XV CITY OF HOPKINS, MINNESOTA MISCELLANEOUS STATISTICAL FACTS December 31, 2000 (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: 1991 329 1992 378 1993 304 1994 457 1995 390 1996 441 1997 886 1998 463 1999 587 2000 443 Estimated Cost: 1991 $5,520,526 1992 7,254,950 1993 8,979,218 1994 11,286,814 1995 14,648,615 —" 1996 18,391,797 1997 20,834,150 1998 11,692,315 1999 42,828,312 2000 17,051,981 143 Table XV CITY OF HOPKINS,MINNESOTA MISCELLANEOUS STATISTICAL FACTS - CONTINUED December 31,2000 (Unaudited) Fire Protection: Number of Stations 1 Number of Employees- Volunteer 30 — Police Protection: Number of Stations 1 — Number of Employees 39 Parks: _ City Parks 12 Playgrounds 1 Skating Rinks 18 Employees: Regular 113 Part Time 4 — Elections: Registered Voters - last general election 8,812 — Number of votes cast last general election 8,023 Election day registrations 2,435 Percentage of registered voters voting 71% 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 17,145 144 —