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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1999
TABLE OF CONTENTS
Exhibit Paize
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 16
II. FINANCIAL SECTION
Independent Auditors' Report 18
A. General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and
Account Groups A 20
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances - All
Governmental Fund Types A-1 22
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances - Budget and
Actual - General and Special Revenue Fund Types A-2 24
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - All
Proprietary Fund Types A-3 26
Combined Statement of Cash Flows - All
Proprietary Fund Types A-4 27
Notes to Financial Statements 28
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1999 -
Exhibit Page
B. Combining Individual Funds and Account
Groups Statements and Schedules
General Fund
Balance Sheet B 47
Statement of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual B-1 48
Schedule of Revenues - Budget and Actual B-2 49
Schedule of Expenditures - Budget and Actual B-3 50
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, 1999
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
Account Groups
Schedule of General Fixed Assets H 103
Schedule of General Fixed Assets by Function
_ and Activity H-1 104
Schedule of Changes in General Fixed Assets
by Function and Activity H-2 105
Statement of General Long-Term Debt I 106
Schedule Page
SECTION IIC
Supplemental Financial Schedules
Schedule of Bonds Payable 1 108
Schedule of Debt Service Requirements - All Funds 2 118
Schedule of Funding Available and Funds Required
for Debt Service 3 119
Schedule of Insurance in Force 4 120
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1999
Table Page
III. STATISTICAL SECTION
Governmental Fund Types - Expenditures by Function I 123 —
Governmental Fund Types -Revenues by Source II 124
Property Tax Levies and Collections III 125
Assessed Value/Tax Capacity Value and Market Value
of All Taxable Property IV 126
Property Tax Rates - Direct and Overlapping Governments V 127 —
Special Assessments Billings and Collections VI 128
Ratio of Net Bonded Debt to Assessed Value/Tax
Capacity Value and Net Bonded Debt Per Capita VII 130
Computation of Legal Debt Margin VIII 132
Computation of Direct and Overlapping Debt —
Including Debt Ratios IX 133
Ratio of Annual Debt Service Expenditures for General —
Bonded Debt to Total General Expenditures X 134
Revenue Bond Coverage - Water, Sewer and Storm Sewer —
Revenue Bonds XI 135
Demographic Statistics XII 136 —
Construction and Property Value XIII 137
Principal Taxpayers XIV 138
Miscellaneous Statistical Facts XV 139 —
i
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT _
YEAR ENDED DECEMBER 31, 1999
CITY OFFICIALS
December 31, 1999 —
CITY COUNCIL
Term —
Expires
Charles D. Redepenning, Mayor 12-31-99 —
Frances Hesch Councilmember 12-31-01
Eugene Maxwell Councilmember 12-31-01
Karen Jensen Councilmember 12-31-99 —
Diane Johnson Councilmember 12-31-99
CITY MANAGER —
Steven C. Mielke
FINANCE DIRECTOR —
Lori Yager
2
CITIZENS
Boards & CITY City Attorney
Commissions COUNCIL
Administrative City Manager MIS
Services City of
Depot Coffee Minnetonka
House
Community Planning &
Finance Fire Police Public Works Recreation
Services Economic
Development
Fire & Medical Patrol/ Building Maint. &
w Assessing Activity CenterAccounting Economic Response InvestigatioEquipment
Development Services
City Clerk/ Pay roll Prevention Public Service/
Elections Housing Communications Engineering
Emergency Prevention
Inspections Utility Billing Planning & Preparedness Street/Traffic/
Zoning Refuse
Reception
Public Housing Water&Sewer
Center for=Arts
Parks & Forestry
Pavilion/Ice Arena
1999
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_ city of Yropkins
1010 First Street South • 91opkins, -%fN55343-7573 • Phone: 612-935-8474 • Eax. 612-935-1834
June 7, 2000
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, 1999 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
An rEgualOpportumty Emp(vyer
Governmental Structure
Back round
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in 1893.
The name was changed in 1928 to Hopkins after one of the early residents. The original territory of —
incorporation was three square miles, but successive annexation since 1946 has enlarged this area
by one-third. In 1947, the residents of the area adopted a City Charter with a Council/Manager form
of government. The governing council is responsible, among other things, for passing ordinances, —
adopting the budget, appointing committees and hiring the government's manager and the
government's attorney. The government's manager is responsible for carrying out the policies and
ordinances of the government, for overseeing day-to-day operations of the government and for
appointing the heads of the government's departments.
The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly —
fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan
complex, is readily accessible by the many highways and railways leading into the area. This easy _
access prompted steady growth for the City of Hopkins during its formative years. In response to
this growth the City developed goals of working towards a planned community, with its policies
directed toward sound ratios of residential, commercial and industrial components, with the current _
tax base approximately 50% single family residential and 50% commercial-industrial and
apartments. The last ten years have shown a stabilization of the population due to the fact that the
City is largely developed and the national trend toward the lowering of persons per household. _
Economic Condition and Outlook
With a strong economy in place, the past few years have shown increased economic and
redevelopment within the City of Hopkins. The valuation of new construction in 1999 was $42.8
million dollars. This economic development increase has been the result of a good development —
market in the Hopkins area along with successful redevelopment activities by the City.
Significant projects completed or begun in 1999 include the following:
Activity Valuation _
Commercial Additions/Alterations:
Walgreens 1,000,000 —
Chapel View 750,000
Supervalu addition 3,700,000
SuperValu Distribution Facility 40,000,000
Efforts are being made for continued development and growth for 2000 and beyond. It is
anticipated that approximately $36,000,000 of construction will also take place in the City of
Hopkins during 2000/2001.
6
-- Some anticipated projects during this period include the following:
Project Valuation
o Nine Mile Cove $10,000,000
o SuperValu - North Annex $ 5,000,000
o Stiele and Bakken Office Space $ 2,000,000
o Stiele and Bakken Warehouse $ 3,200,000
_ o Excelsior Boulevard Reconstruction $ 9,000,000
o Parkside Residential Project $ 8,000,000
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 2000, projects to be constructed include the redevelopment of the Hopkins House Hotel, the new
office and warehouse complex on Excelsior Boulevard and the 58 single-family residential project,
-- Parkside. 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 11th avenue south. The second phase occurred in 1999 between Highway 169
to I I" Avenue South. The third phase will occur in the year 2000 and 2001 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 1999, 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.
Street repair and improvements occurred in 1999 at a cost of approximately $1,087,000. The
projects included replacing infrastructure, roadway surface, curb and gutters and alley
reconstruction. The sump pump inspection program was continued into 1999 at a cost of
approximately $75,000. Storm Sewer reconstruction projects totaling $530,000 were started in
1999.
For the Future
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made.
7
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 take place during 1998-2003.
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 the water towers in the city, reconstruct and repair a water
treatment plant and reconstruct a lift station. The city will continue to replace its' old water meters
with new radio read water meters. The city has identified a need for a skateboard park and will
build this park in June of 2000.
The City of Hopkins is upgrading its' computer systems. In 1999, the Govern property
management system was implemented. This system combines separate departmental databases into _
one and allows for the expansion of the City's informational capabilities. The other major computer
upgrade is in the police department. We are upgrading our Mobile Data Transmission system to
stay abreast of technological advances in this area. This will enhance the speed and accuracy of the _
public safety departments data retrieval and transmission.
Financial Information
The City's accounting records are maintained on the accrual, or modified accrual basis, as
appropriate. Budgetary control is maintained by Department Managers and an encumbrance system —
whereby purchase orders are audited to ensure the adequacy of funds prior to their release to
vendors. The budget is adopted by, and can be amended by, the City Council. The expenditure
budget may not legally be exceeded at the level of control presented in Exhibit A-2. A contingency —
appropriation is established for this purpose.
In developing and evaluating the City's accounting system, consideration is given to the adequacy
of internal accounting controls. These controls are designed to provide reasonable, but not absolute
assurance regarding (1)the safeguarding of assets against loss from unauthorized use or disposition; _
and (2) the reliability of financial records for preparing financial statements and accountability for
assets. The concept of reasonable assurance recognizes that: (1) the cost of control should not
exceed the benefits likely to be derived, and (2) the evaluation of cost and benefits requires _
estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City's --
internal accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Capital financing of the major City improvements is provided for the most part through the
Permanent Improvement Revolving (PIR) Fund financed by the issuance of improvement bonds.
Another source of capital financing is through general obligation bonds, tax increment bonds, or
revenue bonds.
8
Time lags in revenue collections in some of the funds may make it necessary to arrange short-term
operating loans between funds from time to time. These loans are most often arranged through the
General Fund, but at times may be arranged through other fund groups, such as Enterprise or
Capital Projects groups.
General Government Functions
General municipal services are accounted for in the City's General Fund. Exhibit A-2 indicates the
_ transactions for this fund compared to the budgeted amounts. Actual revenues for the general fund
were under budget by $48,901. 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.
The following chart presents a comparative analysis of general fund revenues and other financing
sources:
General Fund Revenues and Other Financing Sources, 1999 and 1998 Actual
21,
a3 _ —
r
Other
Interest ,
33i' I
_ Charges for services
"� ■1998
Fines and forfeitures01999
f3,
Intergovernmental
Licenses and permits
Property 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 1999 (including the fiscal disparities tax
capacity contribution and distribution) was $13,502,822. This 1999 tax base reflects a decrease of
$314,409 over 1998 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 $1,531,218 which is 10.3% of the gross tax capacity base.
Current property tax collections were 98.1% of the tax levy in the year 1999.
General Fund expenditures and transfers totaled $7,104,618 in 1999, an overall increase of
approximately 2.1% from the comparable figure for 1998. This slight increase over 1998 is
primarily from an increase salaries and benefits. Salaries and benefits represent 74% of general
fund expenditures. Total expenditures were below budgeted amounts by $142,975. The general
government budget within the general fund was increased by $33,000 for a management
information technician position. The public safety budget was increased by $38,000 to cover
additional fire calls and police overtime.
9
The community development budget was increased by $37,000 to cover strategic planning costs and
implementation of new permit software. The recreation budget was increased by $55,000 to include _
program costs at the Activity Center. These additional programs were paid for with program fees.
The following chart presents a comparative analysis of general fund expenditures and other uses: —
General Fund Expenditures and 011ier Financing Uses-1999&1998 Actual
Cts t
Recreation
Public Works —
01998
Convmnity Development ®1999
L - w
Public Safety
General GDannient
0 500 1000 1500 2000 2500 3000 3500 4000
(In thousands)
Liquidity
The following table shows previous year-end General Fund equities, as compared to the adopted
appropriations for the following year:
Original Fund Equity
General Fund Beginning of Year % of
Budget Amount Budget —
1995 6,400,000 2,906,149 45.4
1996 6,592,000 2,870,206 43.5 —
1997 6,791,100 3,013,865 44.4
1998 6,969,680 2,940,139 42.2
1999 7,158,664 2,834,758 39.6 —
The City's financial position remained strong during 1999. Cash and investment balances at year _
end totaled $16,512,797 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 —
10
HACA and fiscal disparities distribution) for the following year. Through sound financial
management, the City has achieved this goal in 1999.
—' In addition to the City's strong financial position in the General Fund, the other city fund groups
remained strong as well. The Special Revenue Fund groups have a fund balance of $7,310,611,
which is 89% of the expenditures incurred in 1999. The capital project funds currently have
$3,523,091 in fund balance, which is to be spent in 2000 primarily on the County Road 3 project.
The Enterprise Funds have a working capital balance in excess of$2,400,000, which will provide
_ funds for the upcoming storm sewer projects. The new Equipment Replacement - Internal Service
Fund has a working capital balance in excess of $1,400,000, 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 $3,711,150.
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
$33,609.
Tax Increment Funds
The City has established several tax increment financing districts which have assisted with the
redevelopment of its City. The positive impact of these districts can be seen in a variety of projects
such as the Oaks of Mainstreet development and the Entertainment Center downtown. The
revenues generated in these funds are designated to pay for debt that was issued to help pay for the
projects or to finance the projects themselves. The total fund balance of all tax increment districts is
currently $1,468,644 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.
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 $1,528,619 with $502,000 reserved for housing projects.
11
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 $347,268.
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 $290,565. _
Depot Coffee House
The Depot Coffee House is a student-run gathering place for students. Here the City records the —
expense and revenue of retailing coffee and miscellaneous food products. The teen center is funded
by a grant from the State of Minnesota for youth crime prevention and intervention.
Debt Administration
Net bonded debt per capita and percentages of net debt to market value are useful indicators of a
city's debt position to municipal management, citizens, and investors. Total outstanding bonded
debt as of December 31, 1999, totaled $21,533,543 of which $7,523,543 are redevelopment issues -
the last bond matures August 1, 2016; $1,780,000 are park and recreational bonds - due August 1, —
2011; $3,620,000 are sewer revenue bonds - due August 1, 2015; $2,155,000 are special assessment
bonds - due February 1, 2010 and $6,455,000 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 1999 the city received an A+ rating from Standard and Poors and in the year 2000 the
rating from Standard and Poors was upgraded 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, 1999, only $1,780,000 of general obligation debt was —
applicable to the legal debt limit of$15,749,300.
Capital Project Funds
The proceeds of general obligation bond issues, federal, state and local grants, and special
assessments for capital projects are accounted for in Capital Project Funds until the particular
projects are completed.
The City utilizes a five-year Capital Improvement Plan, outlining projected costs and probable
sources of funding for proposed various capital improvement projects. Any unreserved fund
balances are used as proposed in the Capital Improvement Plan, when projects are ordered by the —
city council. The designated fund balance is $3,487,890, which is for the County Road 3-
construction project and miscellaneous road projects.
12
Enterprise Funds
Water Utility Fund -- The City maintains a complete water delivery system from wells through
filtration plants to the tap. The net working capital position for the water utility fund is currently
$505,889. This fund experienced a net loss this year of$(39,097), which includes a transfer to the
PIR fund for infrastructure repair and replacement.
Sewer Utility Fund -- The City maintains a sewer collection system only, with the treatment
_ operation being performed by the Metropolitan Waste Control Commission. The City then pays a
treatment fee based on sewage flow, which had continued to increase each of the last several years
until 1992. Working capital 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 $1,452,941,
an increase of$100,000 over 1998. Net income this year is $109,464.
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$8,906. The working capital balance for this fund is
$580,259, a decrease of$100,000 over 1998 because of the purchase of a new refuse truck.
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 many capital project costs and
therefore was cash poor. The increased rates and the revenue bond issue have brought the working
capital balance to a positive amount of $420,585. The net income in the Storm Sewer fund is
$312,508.
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 $(51,285). The Pavilion received a Mighty Ducks grant of$16,000 in 1999 which helped boost
its' net income. The working capital balance for this fund is currently $50,507, a small increase
over 1998 of$1,678.
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 two full years. The working
capital balance for the fund is at $63,293. This is a substantial decrease over the 1998 working
capital balance. A force behind the decreased working capital is the beginning of the loan payback.
The Art Center operation is still very new and it is difficult to discern the monetary success at this
early stage. 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.
13
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 Mana ement
Cash temporarily available for short-term investment during the year was invested as authorized by —
Minnesota Statutes Chapter 475 and the City's Investment Policy.
The City of Hopkins subscribes to the "pooled cash" concept of investing which means that all
funds with cash balances participate in an investment pool. This permits some funds to be
overdrawn and others to show cash balances when, in fact, the City has a cash balance. This pooled
cash concept provides for investing greater amounts of money at more favorable rates. Interest
earnings are then 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 68%. During 1999, the City of
Hopkins earned $725,216 as compared to 1998 earnings of $767,963. The lower earnings are —
attributed to the interest earned on the Oaks of Mainstreet project in 1998, with all interest earnings
derived from the project either paying for the project construction or to retire debt. _
At year-end, the City's cash and investment resources (including restricted cash) were held as
follows:
Cost
Cash 1.4% $ 232,260
Commercial Paper 60.3% 10,335,522 —
U.S. Government Agency Securities 38.3% 6,559,015
Total Investments and Deposits $ 17,126,797
Risk Management _
The City continues to maintain insurance coverage at state required levels for various types of
exposure - general and auto liability, worker's compensation, boiler, and employee bonds. _.
General Fixed Assets
The general fixed assets of the City are those fixed assets used in the performance of general
governmental functions and exclude the fixed assets of the enterprise funds. As of December 31,
1999, the general fixed assets of the City amounted to $24,866,285 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.
14
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, 1998.
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,
Steven C. Mielke Lori K. Yager
City Manager Finance Director
15
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, 1998
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.
Q� OF
-,�NITED STATE y arZ �C
W AND ,
coaaoWA
aRAMN f President
SIAL
rHICA6s
Executive Director
16
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4200 Norwest Center Telephone 612 305 5000 -
90 South Seventh Street Fax 612 305 5039
Minneapolis,MN 55402
Independent Auditors' Report
Honorable Mayor and Members of the City Council
City of Hopkins,Minnesota:
We have audited the general-purpose financial statements of the City of Hopkins, Minnesota (the City),
as of and for the year ended December 31, 1999, 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 general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the general-
purpose financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall 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, 1999, and the results of its operations and
cash flows of its proprietary fund types for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was conducted 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. _
June 7,2000
�MC, LLP
18
■„ KPMG LLP KPMG LLP a U.S.limited liability partnership,is
a member of KPMG International,a Swiss association.
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
19
CITY OF HOPKINS,MINNESOTA _
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1999
With Comparative Totals for December 31, 1998
Governmental Fund Types
Special Debt Capital _
ASSETS AND OTHER DEBITS
General Revenue Service Projects
Assets:
Cash,cash equivalents, and investments $ 2,934,132 $ 4,158,701 $ 1,589,959 $ 3,013,595
Taxes receivable 134,144 16,489 10,186 -
Special assessments receivable - 1,313 12,324,115 2,243,626
Accounts receivable 66,582 55,685 - 95,182
Rehabilitation loans receivable - 789,585 -
Accrued interest receivable 46,916 68,711 27,041 50,022
Due from other funds 23,000 4,334,162 - 177,718
Due from other governments 13,320 57,919 - 238,218
Inventory 74,912
Prepaid items 4,740
Other assets
Restricted cash and investments - 364,000
Advance to other funds 594,347 300,000
Long term loans receivable - 2,150,000
Property and equipment,net
Other debits:
Amount available in debt service funds
Amount available in special revenue funds restricted cash -
and investments
Amount to be provided for retirement of general long-term debt
Total Assets and Other Debits $ 3,892,093 $ 12,296,565 $ 13,951,301 $ 5,818,361 '-
LIABILITIES,EQUITY AND OTHER CREDIT
Liabilities:
Accounts payable $ 312,056 $ 365,224 $ - $ 63,081 -
Accrued interest payable _ _
Compensated absences payable 501,836 38,280
Due to other funds - 4,357,162
Due to other governments - 15,283 - _ --
Deferred revenue 193,219 210,005 12,325,641 2,232,189
Deposits payable 7,470 -
Advance from other funds - _
Long-term debt - _ - _ -
Total Liabilities 1,014,581 4,985,954 12,325,641 2,295,270
Equity and Other Credits:
Contributed capital _ _ _ _ -
Investment in general fixed assets _ _ _ _
Retained earnings:
Reserved _ _ _
Unreserved _ _ _ _
Fund balances:
Reserved 669,259 3,907,110 1,625,660 -
Unreserved -
Designated 2,202,634 96,426 - 3,487,890
Undesignated 5,619 3,307,075 - 35,201
Total Equity and Other Credits 2,877,512 7,310,611 1,625,660 3,523,091
Total Liabilities, Equity and Other Credits $ 3,892,093 $ 12,296,565 $ 13,951,301 $ 5,818,361 -
See accompanying Notes to Financial Statements. -
20
A
Proprietary
Fund Type Account Groups Totals
General General (Memorandum Only)
Internal Fixed Long-Term As Restated
Enterprise Service Assets Debt 1999 1998
$ 3,372,286 $ 1,444,124 $ - $ - $ 16,512,797 $ 12,474,732
_ - 160,819 92,754
14,569,054 6,942,971
516,020 457 - - 733,926 597,805
_ - - 789,585 977,998
57,006 23,286 - - 272,982 137,437
_ - 4,534,880 5,703,451
15,385 - - - 324,842 571,345
24,763 - - - 99,675 96,675
6,199 - - - 10,939 9,222
_ 26,421 - - - 26,421 51,803
250,000 - - - 614,000 735,990
_ - - 894,347 915,000
2,150,000 2,150,000
18,312,525 2,098,177 24,866,285 - 45,276,987 43,624,613
1,625,660 1,625,660 1,441,881
1,622
- 16,287,883 16,287,883 12,930,040
$ 22,580,605 $ 3,566,044 $ 24,866,285 $ 17,913,543 $ 104,884,797 $ 89,455,339
$ 155,035 $ 2,361 $ - $ - $ 897,757 $ 722,991
44,808 - - - 44,808 44,808
109,348 - - - 649,464 608,636
177,718 - - - 4,534,880 5,703,451
24,717 - - - 40,000 26,809
127,401 - - - 15,088,455 7,817,712
- 7,470 17,470
894,347 - - - 894,347 915,000
3,620,000 - - 17,913,543 21,533,543 16,588,543
5,153,374 2,361 - 17,913,543 43,690,724 32,445,420
6,378,327 3,236,362 - - 9,614,689 9,614,689
24,866,285 - 24,866,285 23,447,693
250,000 - - - 250,000 250,000
10,798,904 327,321 - - 11,126,225 10,769,275
- - 6,202,029 5,922,209
- - 5,786,950 4,642,603
- - 3,347,895 2,363,450
17,427,231 3,563,683 24,866,285 - 61,194,073 57,009,919
$ 22,580,605 $ 3,566,044 $ 24,866,285 $ 17,913,543 $ 104,884,797 $ 89,455,339
21
CITY OF HOPKINS,MINNESOTA
COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND
BALANCES-ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects -
Revenues:
Property taxes $ 4,049,173 $ 2,203,348 $ 326,022 $ -
Special assessments - 16,065 273,079 585,099 _
Intergovernmental 2,067,882 1,095,427 - 1,042,881
Licenses and permits 469,564
Franchise fee - 113,455 - _
Fines and forfeitures 127,176 24,119 - _ --
Charges for services 203,233 1,073,453 - 6,200
Investment earnings 160,942 222,631 41,864 97,005
Other 69,402 75,212 -
Total Revenues 7,147,372 4,823,710 640,965 1,731,185
Expenditures: _
Current:
General government 775,108 163,156 - _
Public safety 3,369,212 32,021 - _
Community development 792,455 383,346 - _
Public works 1,610,219 122,072 - -
Recreation 530,647 185,010 - _
Other 23,874 --
Capital outlay - 5,785,483 - 1,145,277
Debt service:
Principal payments - - 1,340,000
Interest,fiscal charges and issuance cost - - 731,958 -
Total Operating Expenditures 7,101,515 6,671,088 2,071,958 1,145,277
Excess(deficiency)of revenues over expenditures 45,857 (1,847,378) (1,430,993) 585,908
Other Financing Sources(Uses):
Proceeds from bond issuance - 4,030,000 - 850,000
Operating transfers in - 137,722 1,614,772 177,718
Operating transfers out (3,103) (1,564,930) - (186,961)
Total Other Financing Sources(Uses) (3,103) 2,602,792 1,614,772 840,757
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses 42,754 755,414 183,779 1,426,665 _
Fund Balances-January 1 2,834,758 6,555,197 1,441,881 2,096,426
Prior period adjustment
Fund Balances-January 1,as restated 2,834,758 6,555,197 1,441,881 2,096,426
Residual equity transfer - - -
Fund Balances-December 31 $ 2,877,512 $ 7,310,611 $ 1,625,660 $ 3,523,091 _
See accompanying Notes to Financial Statements. _
22
A-1
Totals
(Memorandum Only)
As Restated
1999 1998
$ 6,578,543 $ 6,203,658
874,243 822,648
4,206,190 2,423,834
469,564 336,959
113,455 103,397
151,295 133,472
1,282,886 4,276,749
522,442 607,564
144,614 710,307
14,343,232 15,618,588
938,264 945,062
3,401,233 3,310,911
1,175,801 1,200,605
1,732,291 1,732,412
715,657 575,623
23,874 72,981
6,930,760 4,084,982
1,340,000 6,695,000
731,958 1,102,916
16,989,838 19,720,492
(2,646,606) (4,101,904)
4,880,000 -
1,930,212 8,645,165
(1,754,994) (7,875,720)
5,055,218 769,445
2,408,612 (3,332,459)
12,928,262 16,828,290
372,467
12,928,262 17,200,757
(940,036)
$ 15,336,874 $ 12,928,262
23
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, 1999
General Fund _
Variance--
favorable
Budget Actual (unfavorable)
Revenues:
Property taxes $ 4,113,906 $ 4,049,173 $ (64,733)
Special Assessments
Licenses and permits 340,000 469,564 129,564
Intergovernmental 2,086,341 2,067,882 (18,459)
Franchise fee
Fines and forfeitures 91,000 127,176 36,176
Charges for services 123,765 203,233 79,468
Investment earnings 347,089 160,942 (186,147)
Other 94,172 69,402 (24,770)
Total Revenues 7,196,273 7,147,372 (48,901)
Expenditures:
General government 785,223 775,108 10,115
Public safety 3,374,631 3,369,212 5,419
Community development 815,056 792,455 22,601
Public works 1,645,325 1,610,219 35,106
Recreation 543,488 530,647 12,841
Other 74,825 23,874 50,951
Capital outlay
Total Expenditures 7,238,548 7,101,515 137,033
Excess(deficiency)of revenues over expenditures (42,275) 45,857 88,132
Other Financing Sources(Uses): -
Proceeds from bond issue
Operating transfers in 30,000 - (30,000)
Operating transfers out (9,045) (3,103) 5,942 -'
Total Other Financing Sources (Uses) 20,955 (3,103) (24,058)
Excess(deficiency) of revenues and other financing -
sources over expenditures and other financing uses (21,320) 42,754 64,074
Fund Balances-January 1 2,834,758 2,834,758 -
Fund Balances- December 31 $ 2,813,438 $ 2,877,512 $ 64,074
See accompanying Notes to Financial Statements _
24
A-2
Total
Special Revenue Funds (Memorandum Only)
Variance-- Variance-
favorable favorable
Budget Actual (unfavorable) Budget Actual (unfavorable)
$ 1,935,554 $ 2,203,348 $ 267,794 $ 6,049,460 $ 6,252,521 $ 203,061
16,065 16,065 - 16,065 16,065
340,000 469,564 129,564
1,128,072 1,061,818 (66,254) 3,214,413 3,129,700 (84,713)
95,000 113,455 18,455 95,000 113,455 18,455
18,000 24,119 6,119 109,000 151,295 42,295
1,039,880 1,069,574 29,694 1,163,645 1,272,807 109,162
156,650 221,954 65,304 503,739 382,896 (120,843)
67,195 46,413 (20,782) 161,367 115,815 (45,552)
4,440,351 4,756,746 316,395 11,636,624 11,904,118 267,494
_ 175,543 163,156 12,387 960,766 938,264 22,502
55,000 32,021 22,979 3,429,631 3,401,233 28,398
414,570 354,440 60,130 1,229,626 1,146,895 82,731
_ 127,344 122,072 5,272 1,772,669 1,732,291 40,378
210,707 185,010 25,697 754,195 715,657 38,538
- - 74,825 23,874 50,951
_ 5,742,733 5,784,372 (41,639) 5,742,733 5,784,372 (41,639)
6,725,897 6,641,071 84,826 13,964,445 13,742,586 221,859
(2,285,546) (1,884,325) 401,221 (2,327,821) (1,838,468) 489,353
4,030,000 4,030,000 - 4,030,000 4,030,000 -
9,045 137,722 128,677 39,045 137,722 98,677
(1,427,900) (1,564,930) (137,030) (1,436,945) (1,568,033) (131,088)
2,611,145 2,602,792 (8,353) 2,632,100 2,599,689 (32,411)
325,599 718,467 392,868 304,279 761,221 456,942
6,700,174 6,700,174 - 9,534,932 9,534,932 -
$ 7,025,773 $ 7,418,641 $ 392,868 $ 9,839,211 $ 10,296,153 $ 456,942
25
CITY OF HOPKINS,MINNESOTA A-3
COMBINED STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN -
RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1999 -
With Comparative Totals for Year Ended December 31, 1998
Totals _
Internal (Memorandum Only)
Enterprise Service 1999 1998
Operating revenues:
Charges for services $ 4,166,434 $ 485,400 $ 4,651,834 $ 4,481,872
Other 65,172 - 65,172 96,865
Total Operating Revenues 4,231,606 485,400 4,717,006 4,578,737
Operating expenses(excluding depreciation):
Salaries and employee benefits 1,031,549 - 1,031,549 1,011,459
Materials, supplies and services 1,414,523 18,852 1,433,375 1,321,587
Disposal costs 876,657 - 876,657 1,006,247
Total Operating Expenses 3,322,729 18,852 3,341,581 3,339,293
Operating income before depreciation expense 908,877 466,548 1,375,425 1,239,444
Depreciation expense 596,860 339,808 936,668 817,128
Operating income 312,017 126,740 438,757 422,316
Nonoperating revenue(expense):
Interest income 159,355 43,419 202,774 160,399
Interest/fiscal agent expense (122,662) - (122,662) (125,370) _
Intergovernmental grants 37,687 - 37,687 46,773
Bond issuance expense (40,815) - (40,815) -
Other 1,750 14,677 16,427 29,384 _
Total nonoperating revenues(expenses) 35,315 58,096 93,411 111,186
Income before other financing sources(uses) 347,332 184,836 532,168 533,502
Other financing sources(uses):
Operating transfers from another fund - 2,500 2,500 600,000
Operating transfers to another fund (177,718) - (177,718) (1,369,445)
Total other financing sources(uses) (177,718) 2,500 (175,218) (769,445)
Net income(loss) 169,614 187,336 356,950 (235,943)
Fund equity:
Retained earnings-January 1 10,879,290 139,985 11,019,275 11,255,218 _
Retained earnings- December 31 $ 11,048,904 $ 327,321 $ 11,376,225 $ 11,019,275
See accompanying Notes to Financial Statements.
26
CITY OF HOPKINS, MINNESOTA A-4
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
_ Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
Totals
Internal (Memorandum Only)
Enterprise Service 1999 1998
Cash Flows from Operating Activities:
Operating income $ 312,017 $ 126,740 $ 438,757 $ 422,316
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 596,860 339,808 936,668 817,128
(Increase)decrease in:
Accounts and accrued interest receivable (150,273) (13,473) (163,746) 15,952
Due from other funds 530,000 - 530,000 (100,000)
Due from other governments 24,089 - 24,089 (28,087)
Inventory 204 - 204 1,982
Prepaid expense (76) - (76) 2,023
Due from Metropolitan Waste Control Commission 25,382 - 25,382 24,406
Accounts, compensated absences and accrued
_ interest payable 24,177 (6,353) 17,824 12,470
Due to other funds (527,380) - (527,380) 1,169,445
Due to other governments (53) - (53) 21,157
Deferred revenue 25,600 - 25,600 25,592
Other - - - 2,867
Cash Provided by Operating Activities 860,547 446,722 1,307,269 2,387,251
Cash Flows from Noncapital Financing Activities:
Intergovernmental grants 37,687 - 37,687 46,773
Operating transfer in - 2,500 2,500 600,000
Operating transfer out (177,718) - (177,718) (1,369,445)
Cash Provided By(Used in)Noncapital
Financing Activities (140,031) 2,500 (137,531) (722,672)
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (967,666) (202,784) (1,170,450) (1,941,305)
Proceeds from sales of property and equipment 1,750 14,677 16,427 24,384
Proceeds from issuance of bonds 1,504,185 - 1,504,185 -
Additions to contributed capital - - - 940,036
Interest and other payments (122,662) - (122,662) (125,370)
Bond payments (140,000) - (140,000) (135,000)
Cash Provided By(Used in)Capital and
Related Financing Activities 275,607 (188,107) 87,500 (1,237,255)
Cash Provided by Investing Activities- interest received 159,355 43,419 202,774 160,399
Increase in Cash and Cash Equivalents 1,155,478 304,534 1,460,012 587,723
Cash and Cash Equivalents-January 1 2,466,808 1,139,590 3,606,398 3,018,675
Cash and Cash Equivalents-December 31 $ 3,622,286 $ 1,444,124 $ 5,066,410 $ 3,606,398
Cash and Cash Equivalents Components:
Cash and Cash Equivalents 3,372,286 1,444,124 4,816,410 3,356,398
Restricted Cash and Cash Equivalents 250,000 - 250,000 250,000
Total Cash and Cash Equivalents $ 3,622,286 $ 1,444,124 $ 5,066,410 $ 3,606,398
See accompanying Notes to Financial Statements
27
City of Hopkins
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 _
1 SUMMARY OF SIGNIFICANT ACCOUNT POLICIES _
The City of Hopkins, Minnesota (the City) is a charter city which was approved December 2, 1947. The City
operates pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council - Manager
form of government.
The financial statements of the City have been prepared in conformity with generally accepted accounting principles
as applied to governmental units by the Government Accounting Standards Board (GASB). The more significant
accounting policies of the City are described below.
A. REPORTING ENTITY _
In accordance with GASB pronouncements, the City's financial statements include all funds, account groups, and
departments of the City and its component units, for which the City is considered to be financially accountable. _
Blended component units, although legally separate entities are, in substance, part of the City's operations and so
data from these units are combined with data of the primary government. The City's blended component unit has
a December 31 year-end.
Blended Component Unit
Housing and Redevelopment Authority in and for the City of Hopkins(HRA) —
The HRA was created by the City to carry out certain redevelopment projects and low income rental housing.
Individuals on the City Council represent the governing board of the HRA. The housing activity is self-sustaining _
for current operating expenses; however, HUD retains ownership of the housing units and funds the debt issued
for their purchase. The City provides development financing through tax increment. The HRA is included in the
City's enterprise funds.
B. FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate.
Government resources are allocated to and accounted for in individual funds based upon the purposes for which _
they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in
the financial statements of this report, into seven generic fund types and three broad fund categories as follows:
Governmental Funds —
General Fund-The general fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund. —
Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the
payment of,general long-term debt principal, interest,and related costs.
Capital Project Funds - Capital project funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and infrastructure, other than those financed by
proprietary funds or special revenue funds. —
28
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
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.
29
City of Hopkins,Minnesota —
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999 —
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 1999. Special revenue funds, which are not
listed below, did not have budget adjustments during 1999. The effect of the supplemental amendments are
as follows:
Original Budget Budget adjustments Final Budget
General Fund $7,158,664 $ 88,929 $75247,593 _
Economic Development $ 126,366 $ 930,860 $1,057,226
Housing Rehab $ 89,150 $4,534,859 $4,624,009
Cable TV $ 143,653 $ (12,300) $ 131,353
Tax Increment 1-1 $ 743,690 $ 331,000 $1,074,690
Tax Increment 1-2 $ 415940 $ 23,000 $ 64,940
Tax Increment 2-1 $ 497,002 $ 47,000 $ 544,002
Tax Increment 2-8 $ 30,102 $ 2,700 $ 32,802
Tax Increment 2-9 $ 39,000 $ 20,000 $ 59,000
6. The budgets for the General Fund are prepared on a modified accrual basis of accounting, which is consistent —
with generally accepted accounting principles (GAAP). Certain Special Revenue Funds are budgeted and those
budgets are prepared on a modified accrual basis of accounting. The following Special Revenue Funds are not
budgeted;Community Block Grant,Tax Increment 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.
30
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
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.
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which
is used essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary
funds consider all investments to be cash equivalents. Restricted cash and investments are also included with cash
equivalents for purposes of the statement of cash flows.
F. SHORT TERM INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided or
services rendered. These receivables and payables are classified as "due from other funds" and "due to other
funds",respectively on the balance sheet(See Note 6).
G. ADVANCE TO/FROM OTHER FUNDS
Noncurrent portions of long-term interfund loan receivables are reported as advances and are offset equally by a
fund balance reserve account which indicates that they do not constitute expendable available financial resources
and therefore are not available for appropriation.
H. INVENTORY
Inventory is valued at cost (FIFO basis) based on physical counts for the General, Water and Sewer Funds. The
cost of inventory is recorded as an expenditure/expense at the time of consumption.
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.
31
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS- CONTINUED
December 31, 1999 —
The estimated useful lives are as follows:
Buildings 25 - 50 years
Mains and Lines 50- 100 years
Improvements 10- 20 years —
Equipment 3 - 20 years
K. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Vacation and flex leave
pay is accrued when incurred in the proprietary funds and reported as compensated absences payable. Vacation _
and flex leave pay that is expected to be liquidated with expendable available financial resources is reported as an
expenditure, and compensated absences payable of the governmental fund that will pay it.
Employees hired prior to August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month —
of full-time service, instead of flex leave. Sick pay is expensed as paid. No liability is reported for unpaid
accumulated sick leave.
Employees hired prior to August 1, 1998, shall be entitled to severance pay, after completion of five years
continuous City employment. Severance pay is calculated by multiplying the total number of continuous years in
the City employ and/or accumulated sick leave by the daily wage rate prevailing at date of severance, at one day _
per year of such employment, to a maximum of 20 days. Such severance money shall be paid in case of
separation caused by death, eligible retirements, medically attested disability preventing an employee from
performing the major duties of the position or separation for non-disciplinary reasons. Severance pay is accrued
when incurred in the proprietary funds and reported as a compensated absences payable. Severance pay that is —
expected to be liquidated with expendable available financial resources is reported as an expenditure and
compensated absences payable of the governmental fund that will pay it.
Employees who were hired prior to July 1, 1993 and have been with the City for at least ten years and are either
(1)age 60 years or older, or(2)eligible for full PERA retirement benefits, may retire and receive full single health
and life insurance coverage until age 65.
L. LONG-TERM OBLIGATIONS
Long-term obligations expected to be financed from governmental funds are accounted for in the general long-
term debt account group. For other long-term obligations, only that portion expected to be financed from
expendable available financial resources is reported as a fund liability of a governmental fund.
Long-term obligations expected to be financed from proprietary funds are accounted for in those funds.
In governmental fund types, bond discounts and issuance costs are recognized in the current period. Bond _
discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds
using the bonds-outstanding method,which approximates the effective interest method.
M. FUND EQUITY
Contributed capital is recorded in proprietary funds that have received capital grants or contributions.
Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a
specific future use. Designated fund balances represent tentative plans for future use of financial resources (See
Note 5).
32
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
N. INTERFUND TRANSACTIONS
Quasi-external transactions are accounted for as revenues and expenditures. Transactions that constitute
reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are
recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
All other interfund transactions are reported as transfers. Non-recurring or non-routine permanent transfers of
equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers.
O. TOTAL COLUMNS ON COMBINED STATEMENTS
Total columns on the combined statements are captioned"Memorandum Only"to indicate that they are presented
only to facilitate financial analysis. Data in these columns do not present financial position, results of operations,
or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been
made in the aggregation of this data.
P. PROPERTY TAXES
Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County
(the County) for collection in the following year. In the State of Minnesota, counties act as collection agents for
all property taxes. The County spreads all levies over assessable property. Such taxes become a lien on January 1
and are recorded as receivables by the City at that date.
Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal
property taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County
_ provides tax settlements to cities and other local governments three times a year, on or before January 25, July 6
and November 30.
Property taxes are accrued and recognized as revenue for collections within 60 days of year-end. Taxes that
remain unpaid at the County on December 31 are classified as delinquent taxes receivable, and are fully offset by
deferred revenues because they are not available to finance current expenditures. No allowance for uncollectible
taxes has been provided because such amounts are not expected to be material.
Q. RECLASSIFICATIONS
Certain 1998 financial statement amounts have been reclassified to conform to the 1999 presentation.
R.CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Commercial Development Revenue Note/Bonds in accordance with the
Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in
the public interest. The obligations are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired
facilities transfers to the private-sector entity served by the debt issuance. Neither the City, the State, nor any
_ political subdivision thereof is obligated in any manner for repayment of the obligations. Accordingly,the bonds
are not reported as liabilities in the accompanying financial statements. As of December 31, 1999, there were 16
note/bond issues outstanding,with an aggregate principal amount payable of approximately$53.9 million.
33
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999 —
S. RECENTLY ISSUED ACCOUNTING STANDARD
In September 1993, the Government Account Standards Board (GASB) released GASB Statement No. 20
(Statement), Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That
Use Proprietary Fund Accounting. The Statement provides that proprietary and similar trust funds may apply all —
GASB pronouncements, as well as all Financial Accounting Standards Board (FASB) Statements and
Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARBs) to the
extent they do not conflict with GASB pronouncements. —
The City's proprietary funds comply with all applicable GASB pronouncements. The City also applies all FASB
Statements and Interpretations, APB Opinions and ARBs issued on or before November 30, 1989, to the extent _
they do not conflict with GASB pronouncements. The City has not elected to follow guidance of FASB
Statements and Interpretations,APB Opinions and ARBs issued after November 30, 1989.
T. USE OF ESTIMATES —
The preparation of financial statements in conformity with generally accepted accounting principles 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, 1999,were as follows:
Fair Value Bank Balance
$232,260 $280,403 —
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, 1999 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; —
34
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS- CONTINUED
December 31, 1999
(d)Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System;
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality,
and maturity in 270 days or less; and
(f)Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic branches
of foreign banks or United States insurance companies or their subsidiaries.
(g)Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with
capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
The City's investments are categorized below to give an indication of the level of risk assumed at year-end.
Category I 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, 1999,were as follows:
Credit Risk Category
Securities Type 1 2 3 Fair Value
U.S. Government $ 6,559,015 $ - $ - $6,559,015
Agency Securities
Commercial Paper 10,335,522 - - 10,335,522
Total Investments $16,894,537 $ - $ - $16,894,537
Total Deposits(See Note 2A) 232,260
Total Investments and Deposits 17,126,797
Less Restricted Cash and Investments 614,000
Net Cash,Cash Equivalents and Investments $ 16,512,797
In fiscal 1999,the city recorded an unrealized loss of$65,001 for certain investments. This loss is unlikely to occur
do to the fact that the city generally holds its investments until maturity.
35
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS- CONTINUED
December 31, 1999
3 FIXED ASSETS —
Changes in the General Fixed Assets Account Group during 1999 were as follows:
Balance Transfers/ Balance
Jan 1, 1999 Additions Deletions Dec 31, 1999
Land $ 3,969,249 $ 984 $ - $ 3,970,233
Buildings 2,434,855 121,000 - 2,555,855
Other Improvements 14,979,037 1,566,496 - 16,545,533
Vehicles 340,657 - 51,938 288,719
Machinery&Equipment 1,420,848 87,190 2,093 1,505,945
Construction in Progress 303,047 100,000 403,047 -
Total $23,447,693 $1,875,670 $ 457,078 $24,866,285
Changes in proprietary fund type property and equipment during 1999 were as follows:
Balance Balance
Jan 1, 1999 Additions Deletions Dec 31, 1999
Land $ 321,597 $ - $ - $ 321,597
Buildings 6,531,097 - - 6,531,097
Other Improvements 15,809,989 1,148,917 14,575 16,944,331
Vehicles 2,147,881 262,188 9,454 2,400,615
Machinery&Equipment 2,716,300 267,447 - 2,983,747
Construction in Progress 936,196 439,080 932,606 442,670
Total $28,463,060 $ 2,117,632 $ 956,635 $29,624,057 _
Less: Accumulated depreciation 9,213,355
Net Fixed Assets $20,410,702
4 LONG-TERM DEBT
Changes in long-term debt during 1999 were as follows: _
Balance Balance
Jan 1, 1999- Additions Deductions Dec 31, 1999
General Obligation Bonds $12,888,543 $4,030,000 $1,160,000 $15,758,543
Special Assessment Bonds 1,485,000 850,000 180,000 2,155,000
Total 14,373,543 4,880,000 1,340,000 17,913,543
Enterprise Revenue Bonds 2,215,000 1,545,000 140,000 3,620,000
Total $16,588,543 $6,425,000 $1,480,000 $21,533,543 _
36
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
The long-term debt obligations outstanding at year-end are summarized as follows:
Bonds Maturities Interest Rate Dec 31, 1999
General Obligation Bonds 2000-2021 3.60-8.10% $ 15,758,543
Special Assessment Bonds 1999-2008 4.00-6.85 2,155,000
Revenue Bonds 1999-2010 4.00-5.00 3,620,000
Long-term debt maturities(including interest of$11,901,315)are as follows:
Year Ending Special
December 31 General Revenue Assessment Total
2000 $ 1,429,967 $ 367,555 $ 282,329 $ 1,977,390
2001 1,765,332 383,000 341,423 1,964,581
2002 1,845,207 377,703 285,398 1,969,129
2003 1,888,334 377,050 280,589 1,886,554
2004 1,745,329 380,795 275,380 1,921,772
2005 1,799,555 378,892 264,833 1,775,784
2006 1,793,737 376,415 258,937 1,822,039
2007 1,866,624 383,120 252,597 1,803,489
2008 1,847,096 383,925 245,802 1,873,715
Thereafter 9,890,854 1,452,145 214,935 7,358,716
Less: Interest 10,113,492 1,240,600 547,223 11,901,315
$ 15,758,543 $ 3,620,000 $ 2,155,000 $ 21,533,543
There is $1,625,660 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, 1999, the debt limit for the City was $15,903,640 but only $1,780,000 of general obligation and revenue bonds
were applicable to the limit. The legal debt margin was$15,749,300.
37
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31, 1999 —
5 DESIGNATIONS AND RESERVES OF FUND EQUITY
Fund equity in the various funds has been reserved or designated at December 31, 1999 as follows:
Reserved —
General Fund:
Inventories $ 74,912
Advance to other funds 594,347
Total 669,259
Special Revenue Funds:
Loans receivable 789,585 _
Central Business District Redevelopment Plan 200,000
Long term receivables 2,450,000
Valley Park Condominiums 110,507
Patio Homes 357,018 —
Total 3,907,110
Debt Service Funds:
Debt service 1,625,660
Enterprise Funds:
Storm Sewer Utility Fund:
Bonds and Interest 250,000
Total Reserved $6,452,029
Designated
General Fund:
Shady Oak Beach Development $ 75,000
Downtown Stage 32,000 —
Budget Carryovers 7,000
Working Capital 2,088,634
Total 2,202,634
Special Revenue Funds —
Housing Rehab 66,247
State Chemical Assessment 12,879
Cable TV equipment 12,300
Depot Coffee House parking lot 5,000
Total 96,426
Capital Projects Funds: —
Street Improvements 3,487,890
Total Designated $ 5,786,950
38
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
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, 1999:
Interfund Interfund
Fund Receivable Payable
General Fund $ 23,000 $ -
Special Revenue Funds:
_ Economic Development Fund 2,417,094 2,072
Tax Increment 1.1 Fund 1,905,679 1,500,000
Art Center - 252,000
Tax Increment 1.2 Fund - 2,063,879
Paratransit Fund - 8,000
Housing Rehabilitation 9,317 -
Section 8 Housing Fund 1,250 9,317
Depot Coffee House Fund - 15,000
Tax Increment 2.6 Fund - 505,679
Tax Increment 2.9 Fund 822 -
Tax Increment 2.11 Fund - 1,215
Capital Project Funds:
Permanent Improvement Revolving Fund 177,718 -
Enterprise Funds:
Water Utility Fund - 95,606
Sewer Utility Fund - 75,963
Storm Sewer Utility Fund - _ 6,149
Total $4,534,880 $4,534,880
7 SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains seven Enterprise funds which account for water, sewer, refuse, storm sewer utility operations,
pavilion/ice arena operations,art center operations and low income housing rentals. Segment information for the year
ended December 31, 1999 is as follows:
Storm
Water Sewer Refuse Sewer Pavilion/ Total
Utility Utility Utility Utility Ice Arena Art Housing Enterprise
Fund Fund Fund Fund Fund Center Authority Funds
Operating Revenues $ 869,555 $ 1,445,968 $ 568,078 $ 643,303 $ 251,114 $ 238,509 $215,079 $ 4,231,606
Depreciation Expense 174,377 98,130 48,179 138,820 57,537 79,817 - 596,860
_ Operating Income(Loss) 25,001 141,027 (51,883) 420,202 (54,284) (173,703) 5,657 312,017
Operating Transfers In(Out) (95,606) (75,963) - (6,149) - - - (177,718)
Net Income(Loss) (39,097) 109,464 8,906 312,508 (51,285) (185,408) 14,526 169,614
Grants - - 30,220 - - - 7,467 37,687
Property and Equipment:
Additions 135,281 106,032 169,988 539,914 4,574 11,877 - 967,666
Deletions 9,454 32,913 - 914,268 - - 956,635
Net Working Capital 505,890 1,452,941 580,259 420,585 50,507 63,293 100,579 3,174,054
Total Assets 4,371,720 4,272,126 1,097,327 6,454,428 2,080,816 4,189,522 114,666 22,580,605
... Bonds Payable - - - 3,620,000 - - - 3,620,000
Contributed Assets - 472,684 - - 2,085,025 3,820,618 - 6,378,327
Total Equity $ 4,196,390 $ 4,107,905 $ 1,054,507 $ 2,753,865 $ 2,057,476 $ 3,156,509 $100,579 $ 17,427,231
39
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999 —
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
using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity
is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a lifetime
annuity that ceases upon the death of the retiree--no survivor annuity is payable. There are also various types of
joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the —
annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of
public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available
at any time to members who leave public service,but before retirement benefits begin. —
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active
plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are —
bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required supplementary
information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street#200, St. —
Paul, Minnesota,55102 or by calling(651)296-7460 or 1-800-652-9026.
2. Funding Policy —
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans equal —
to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required
40
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
to contribute 8.75% and 4.75%, respectively, of their annual covered salary. PEPFF members are required to
contribute 7.60% of their annual covered salary. The City of Hopkins is required to contribute the following
percentages of annual covered payroll: 11.43%for Basic Plan PERF members, 5.18%for Coordinated Plan PERF
members and 9.3% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for
the years ending December 31, 1999, 1998, and 1997 were$172,443, $164,242, and $135,795, respectively. The
City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 1999, 1998,
and 1997 were $139,731, $153,481, and $145,141, 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:
1999 Contributions: City $28,325
State $54,494
-- Actuarial valuation date: 12/31/99
Actuarial cost method: Entry age normal actuarial cost method
Assumed rate of return: 5%
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
12/31/99 $ - 100% 2,380,543
12/31/98 $ - 100% 1,723,374
12/31/97 $ - 100% 1,483,054
41
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS -CONTINUED
December 31, 1999
Actuarial Valuations
Actuarial Actuarial Accrued Excess of _
Actuarial Value of Liability(AAL) Assets Funded
Valuation Assets Entry Age Over AAL Ratio
Date (a) fb) (a—b) (a/b)
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$2,380,543 at December 31, 1999 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$159,950 _
as of December 31, 1999. The Hopkins Fire Department is a volunteer organization and therefore does not have
payroll to disclose.
9 DEFERRED COMPENSATION —
The City implemented GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code
Section 457 Deferred Compensation Plans, during 1998. In 1998, the city's deferred compensation plan was reported _
as an expendable trust fund. The city has subsequently determined that the plan is an annuity contract. Internal
Revenue Code Section 457 (g)(3) provides that annuity contracts may be treated as a trust. Since the city has minor
administrative involvement and does not perform the investing function for the plan, the plan has been removed from _
the trust and agency fund and is no longer reported in the financial statements as part of the reporting entity. The
adjustment to restate the fund balance at January 1, 1999, is as follows:
Trust and Agency Fund
Fund balance as previously reported $2,903,178
Adjustment (2,903,178)
Fund balance, as restated _
10 BUDGET INFORMATION
For the year ended December 31, 1999, actual expenditures did not exceeded the budgeted amount in any of the
budgeted funds.
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process are
funds that are completely reimbursable from the federal government, Tax Increment District Funds and funds that are
established for a particular project and that project has been primarily completed. The following is a list of non-
budgeted funds and a reconcilement of budgeted and non-budgeted funds actual, revenues, expenditures and other _
financing sources(uses):
Community Development Block Grant,T.I.F. 2.11 and the Art Center Construction.
Budgeted Special Non-budgeted Total Special
Revenue Funds Funds Revenue Funds
Total Revenue $ 4,756,746 $ 66,964 $ 4,823,710
Total Expenditure $ 6,641,071 $ 30,017 $ 6,671,088
Total Other Financing Sources(Uses) $ 2,602,792 $ - $ 2,602,792 _
42
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999
11 FUND BALANCE AND RETAINED EARNINGS DEFICITS
At December 31, 1999, 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 $251,088
Tax Increment 2.6 $493,025
Tax Increment 2.11 $ 1,215
Art Center $664,109
12 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$789,585 at December 31, 1999.
13 METROPOLITAN WASTE CONTROL COMMISSION
A. Interceptor Acquisition Contract
As of January 1, 1971, the Metropolitan Waste Control Commission (MWCC) assumed ownership of all existing
interceptors and treatment works. Under the terms of the agreement with the MWCC,the City is to be reimbursed
for the value at the time of transfer of such facilities.
The current value receivable represents the value of the facilities acquired by the MWCC, and was determined to
be $493,732 at the date of takeover by the MWCC. This amount is being amortized through credits received
against annual sewer service billings from the MWCC over a thirty-year period with interest at 4%.
Prior to 1999, the City received credits against MWCC billings totaling $796,166 of which $467,311 was treated
as a reduction of principal. During 1999,the City received a credit of$27,454, of which$25,382 was a reduction
of principal. As of December 31, 1999, a balance of$26,421 remained to be collected over the next year.
14 CLAIMS AND LITIGATION
The City had the usual and customary types of miscellaneous claims pending at year-end,which are of a minor nature
'— and usually all covered by insurance carried for that purpose. The City carries a $750,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
15 SUBSEQUENT EVENTS
On April 11, 2000, the City issued $2,060,000 of G.O. Water Revenue Bonds. The proceeds of the bonds are being
used to pay for construction of improvements to the City's water treatment and distribution system.
43
City of Hopkins,Minnesota
NOTES TO FINANCIAL STATEMENTS-CONTINUED
December 31, 1999 —
16 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.
17 NEW FUND
The City transferred a portion of its' assets in the Housing Rehabilitation Special Revenue Fund into the Section
Eight Special Revenue Fund. The transfer was reported as a residual equity transfer. _
44
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SECTION IIB
COMBINING, INDIVIDUAL FUNDS AND
ACCOUNT GROUPS
STATEMENTS AND SCHEDULES
45
CITY OF HOPKI NS, MINNESOTA -
COMPREHENSIVE ANNUAL FINANCIAL REPORT -
GENERAL FUND
The Home Rule Charter of the City of Hopkins provides in Section 7.11 "There shall
be maintained in the City Treasury a general fund for the payment of such expenses
as the Council may deem proper. Into this fund shall be paid all moneys levied for
this fund and all moneys not required to be placed in some other fund."
The General Fund is established to account for the revenue and expenditures to —'
carry out basic governmental activities of the city such as general government,
public safety, public works, community development and parks and recreation. _
Revenue is recorded by source; i.e., taxes, licenses, and General Fund expenditures
are made primarily for current day-to-day operations and operating equipment and
are recorded by major functional classifications and by operating departments. _
46 —
CITY OF HOPKINS, MINNESOTA B
GENERALFUND
BALANCESHEET
December 31, 1999
With Comparative Amounts for December 31, 1998
1999 1998
ASSETS
Cash and investments $ 2,934,132 $ 2,585,620
Taxes receivable 134,144 85,298
Accounts receivable 66,582 35,957
Accrued interest receivable 46,916 29,609
Due from other funds 23,000 297,437
"- Due from other governments 13,320 15,932
Prepaid items 4,740 3,099
Advance to other funds 594,347 615,000
Inventory 74,912 71,708
Total Assets $ 3,892,093 $ 3,739,660
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 312,056 $ 201,325
Compensated absences payable 501,836 513,446
Deferred revenue 193,219 172,661
Deposits payable 7,470 17,470
Total Liabilities 1,014,581 904,902
Fund Balance:
Reserved:
Inventory 74,912 71,708
Advance to other funds 594,347 615,000
Unreserved:
Designated for downtown park stage 32,000 32,000
Designated for Shady Oak Beach Development 75,000 100,000
Designated for budget carryovers 7,000 28,320
Designated for working capital 2,088,634 1,983,600
Undesignated 5,619 4,130
Total Fund Balance 2,877,512 2,834,758
Total Liabilities and Fund Balance $ 3,892,093 $ 3,739,660
47
CITY OF HOPKINS, MINNESOTA B-1
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Property taxes $ 4,113,906 $ 4,049,173 $ (64,733) $ 3,921,506 -
Licenses and permits 340,000 469,564 129,564 336,959
Intergovernmental 2,086,341 2,067,882 (18,459) 2,146,480
Fines and forfeitures 91,000 127,176 36,176 109,098
Charges for services 123,765 203,233 79,468 125,645
Investment earnings 347,089 160,942 (186,147) 119,158
Other 94,172 69,402 (24,770) 94,818
Total Revenues 7,196,273 7,147,372 (48,901) 6,853,664
Expenditures: _
General Government 785,223 775,108 10,115 806,168
Public Safety 3,374,631 3,369,212 5,419 3,276,335
Community Development 815,056 792,455 22,601 703,196
Public Works 1,645,325 1,610,219 35,106 1,619,260
Recreation 543,488 530,647 12,841 481,105
Other 74,825 23,874 50,951 72,981 -
Total Expenditures 7,238,548 7,101,515 137,033 6,959,045
Excess(deficiency)of revenues over expenditures (42,275) 45,857 88,132 (105,381) -
Other Financing Sources(Uses):
Operating transfers in: 30,000 - (30,000) - -
Operating transfers out: (9,045) (3,103) 5,942 -
Total Other Financing Uses 20,955 (3,103) (24,058)
Excess(deficiency) of revenues over expenditures
and other financing uses (21,320) 42,754 64,074 (105,381)
Fund Balance-January 1 2,834,758 2,834,758 - 2,940,139
Fund Balance- December 31 $ 2,813,438 $ 2,877,512 $ 64,074 $ 2,834,758 -
48
CITY OF HOPKINS, MINNESOTA B-2
GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
Adjusted favorable 1998
Budget Actual (unfavorable) Actual
Taxes
General property taxes $ 3,653,906 $ 3,491,748 $ (162,158) $ 3,371,735
Fiscal disparities 460,000 557,425 97,425 549,771
Total Taxes 4,113,906 4,049,173 (64,733) 3,921,506
_ Licenses and permits
Business 139,000 139,047 47 146,099
Non-business 201,000 330,517 129,517 190,860
Total Licenses and permits 340,000 469,564 129,564 336,959
Intergovernmental
Local government aids 867,130 867,140 10 851,917
Homestead credit 960,664 960,734 70 960,853
State grants 38,809 33,482 (5,327) 94,460
Insurance premium - police 144,738 135,862 (8,876) 142,013
Insurance premium -fire 54,000 54,494 494 53,048
Federal grants 17,000 11,397 (5,603) 37,286
Other grants 4,000 4,773 773 6,903
Total Intergovernmental 2,086,341 2,067,882 (18,459) 2,146,480
Fines and forfeitures
_ Court fines 90,000 124,414 34,414 107,850
Other 1,000 2,762 1,762 1,248
Total Fines and forfeitures 91,000 127,176 36,176 109,098
Charges for services
General government 5,000 5,155 155 3,364
Community Services 47,915 113,219 65,304 49,145
Public safety 20,100 25,999 5,899 21,554
Public works 3,000 6,173 3,173 5,341
Recreation 44,750 50,939 6,189 9,384
Community Development 3,000 1,748 (1,252) 36,857
Total Charges for services 123,765 203,233 79,468 125,645
Other
Investment earnings 347,089 160,942 (186,147) 119,158
Miscellaneous 94,172 69,402 (24,770) 94,818
Total Other 441,261 230,344 (210,917) 213,976
Other Financing Sources 30,000 - (30,000) -
Total Revenues $ 7,226,273 $ 7,147,372 $ (78,901) $ 6,853,664
49
CITY OF HOPKINS, MINNESOTA B-3
GENERAL FUND -
SCHEDULE OF EXPENDITURES -BUDGET AND ACTUAL
Year Ended December 31, 1999 _
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance
favorable 1998
Budget Actual (unfavorable) Actual
GENERAL GOVERNMENT -
Mayor and Council
Salaries and employee benefits $ 23,204 $ 23,424 $ (220) $ 23,355 _
Materials, supplies and services 67,806 66,043 1,763 52,495
Total 91,010 89,467 1,543 75,850
Health and Welfare -
Materials, supplies and services 19,500 19,500 - 36,336
Administrative Services -
Salaries and employee benefits 280,411 279,303 1,108 249,233
Materials, supplies and services 66,595 65,941 654 33,874
Capital outlay 14,406 13,403 1,003 3,500 -
Total 361,412 358,647 2,765 286,607
Less expenditures charged to other activities (47,718) (46,260) (1,458) (22,125)
Net 313,694 312,387 1,307 264,482 -
Finance
Salaries and employee benefits 217,589 223,588 (5,999) 219,624 -
Materials, supplies and services 36,952 36,341 611 31,582
Capital outlay 19,001 18,921 80 15,500
Total 273,542 278,850 (5,308) 266,706 -
Less expenditures charged to other activities (154,180) (160,460) 6,280 (121,275)
Net 119,362 118,390 972 145,431
Legal Services -
Materials, supplies and services 119,010 118,548 462 109,483
Municipal Building
Salaries and employee benefits 107,349 106,468 881 100,067
Materials, supplies and services 136,538 137,491 (953) 140,114
Capital outlay 10,624 11,611 (987) 400 -
Total 254,511 255,570 (1,059) 240,581
Less expenditures charged to other activities (177,275) (179,178) 1,903 (122,100)
Net 77,236 76,392 844 118,481 -
Elections
Salaries and employee benefits 15,845 7,504 8,341 22,419 -
Materials, supplies and services 8,342 10,777 (2,435) 4,733
Total 24,187 18,281 5,906 27,152
50
CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - CONTINUED
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance-
favorable 1998
Budget Actual (unfavorable) Actual
GENERAL GOVERNMENT (continued)
- City Clerk
Salaries and employee benefits $ 33,851 $ 36,312 $ (2,461) $ 44,878
Materials, supplies and services 7,453 5,047 2,406 4,209
Capital outlay 2,920 2,744 176 1,991
Total 44,224 44,103 121 51,078
Less expenditures charged to other activities (23,000) (21,960) (1,040) (22,125)
Net 21,224 22,143 (919) 28,953
TOTAL GENERAL GOVERNMENT 785,223 775,108 10,115 806,168
PUBLIC SAFETY
Police
_ Police Administration
Salaries and employee benefits 213,297 179,815 33,482 246,596
Materials, supplies and services 45,819 79,971 (34,152) 39,296
_ Capital outlay 56,067 56,064 3 56,315
Total 315,183 315,850 (667) 342,207
Police Patrol and Investigation
- Salaries and employee benefits 1,500,272 1,455,771 44,501 1,495,049
Materials, supplies and services 221,161 262,451 (41,290) 187,943
Capital outlay 78,840 78,840 - 88,415
Total 1,800,273 1,797,062 3,211 1,771,407
Police Services
Salaries and employee benefits 532,741 535,454 (2,713) 507,835
Materials, supplies and services 108,281 105,154 3,127 82,579
Capital outlay 36,948 35,903 1,045 43,460
Total 677,970 676,511 1,459 633,874
Total Police 2,793,426 2,789,423 4,003 2,747,488
Fire
Salaries and employee benefits 286,965 287,742 (777) 275,119
- Materials, supplies and services 161,315 161,427 (112) 126,771
Capital outlay 132,925 130,620 2,305 126,957
Total 581,205 579,789 1,416 528,847
TOTAL PUBLIC SAFETY 3,374,631 3,369,212 5,419 3,276,335
51
CITY OF HOPKINS, MINNESOTA B-3
GENERAL FUND -
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999 _
Variance--
favorable 1998
COMMUNITY DEVELOPMENT Budget Actual (unfavorable) Actual -
Administration
Salaries and employee benefits $ 98,612 $ 97,211 $ 1,401 $ 73,060 -
Materials, supplies and services 3,627 4,798 (1,171) 2,226
Capital outlay 3,886 3,678 208 2,144
Total 106,125 105,687 438 77,430 -
Planning and Economic Development
Salaries and employee benefits 121,899 105,629 16,270 125,020 _
Materials, supplies and services 39,224 41,157 (1,933) 13,817
Capital outlay 4,119 4,116 3 5,162
Total 165,242 150,902 14,340 143,999
Less expenditures charged to other activities (9,900) (9,860) (40) - -
Net 155,342 141,042 14,300 143,999
Assessing -
Salaries and employee benefits 173,277 172,293 984 178,020
Materials, supplies and services 20,291 20,415 (124) 13,222
Capital outlay 3,819 3,816 3 5,820 --
Total 197,387 196,524 863 197,062
Inspections -
Salaries and employee benefits 269,983 266,853 3,130 248,333
Materials, supplies and services 50,601 43,590 7,011 25,037
Capital outlay 35,618 38,759 (3,141) 11,335 -
Total 356,202 349,202 7,000 284,705
TOTAL COMMUNITY DEVELOPMENT 815,056 792,455 22,601 703,196
PUBLIC WORKS
Public Works Buildings _
Salaries and employee benefits 6,745 7,813 (1,068) 8,288
Materials, supplies and services 38,529 39,451 (922) 34,848
Capital outlay 835 840 (5) 5,627 _
Total 46,109 48,104 (1,995) 48,763
Less expenditures charged to other activities (49,109) (48,104) (1,005)
Net (3,000) - (3,000) 48,763
52
- CITY OF HOPKINS,MINNESOTA B-3
GENERAL FUND
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance-
favorable 1998
Budget Actual (unfavorable) Actual
PUBLIC WORKS(continued)
Equipment Services
Salaries and employee benefits $ 146,893 $ 153,628 $ (6,735) $ 150,807
Materials, supplies and services 10,368 10,544 (176) 8,273
Capital outlay 835 840 (5) 500
Total 158,096 165,012 (6,916) 159,580
Less expenditures charged to other activities (138,725) (147,220) 8,495 (120,208)
- Net 19,371 17,792 1,579 39,372
Public Works Administration
- Salaries and employee benefits 120,335 109,246 11,089 112,206
Materials, supplies and services 15,419 25,185 (9,766) 19,218
Capital outlay 3,742 3,744 (2) 2,500
- Total 139,496 138,175 1,321 133,924
Less expenditures charged to other activities (123,471) (123,000) (471) (132,419)
Net 16,025 15,175 850 1,505
Engineering:
Salaries and employee benefits 118,875 122,319 (3,444) 121,229
- Materials, supplies and services 28,842 21,151 7,691 41,671
Capital outlay 9,584 9,583 1 5,750
Total 157,301 153,053 4,248 168,650
- Less expenditures charged to other activities (26,000) (23,344) (2,656) (62,491)
Net 131,301 129,709 1,592 106,159
_ Streets and Alleys:
Salaries and employee benefits 220,462 225,529 (5,067) 226,101
Materials, supplies and services 126,631 122,746 3,885 89,443
- Capital outlay 56,430 56,227 203 56,756
Total 403,523 404,502 (979) 372,300
Less expenditures charged to other activities (65,000) (64,980) (20) -
- Net 338,523 339,522 (999) 372,300
Snow and Ice Removal:
- Salaries and employee benefits 71,147 69,089 2,058 42,491
Materials, supplies and services 17,474 16,954 520 11,683
Capital outlay 4,736 4,740 (4) 3,500
Total 93,357 90,783 2,574 57,674
- 53
CITY OF HOPKINS, MINNESOTA B-3
GENERAL FUND -
SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1999 -
With Comparative Actual Amounts for Year Ended December 31, 1998
1999 _
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
PUBLIC WORKS (continued) -
Seal Coat Zone:
Salaries and employee benefits $ 36,399 $ 28,783 $ 7,616 $ 21,415 _
Materials, supplies and services 45,859 55,207 (9,348) 50,380
Capital outlay 4,621 4,620 1 3,500
Total 86,879 88,610 (1,731) 75,295
Sidewalk Repair:
Salaries and employee benefits 5,721 4,867 854 2,204
Materials, supplies and services 27,214 27,598 (384) 24,559 -
Total 32,935 32,465 470 26,763
Traffic Signs and Signals: _
Salaries and employee benefits 52,347 58,020 (5,673) 64,338
Materials, supplies and services 69,509 62,898 6,611 66,125
Capital outlay 4,704 4,704 - 3,500 -
Total 126,560 125,622 938 133,963
Street Lighting: _
Salaries and employee benefits 28,347 9,987 18,360 8,698
Materials, supplies and services 112,514 114,530 (2,016) 111,896
Capital outlay 3,000 - 3,000 - -
Total 143,861 124,517 19,344 120,594
Street Cleaning:
Salaries and employee benefits 20,653 33,262 (12,609) 35,613
Materials, supplies and services 18,574 21,719 (3,145) 10,576
Capital outlay 16,070 16,068 2 15,000 -
Total 55,297 71,049 (15,752) 61,189
Municipal Parks:
Salaries and employee benefits 334,509 314,310 20,199 301,373
Materials, supplies and services 118,563 111,328 7,235 111,635
Capital outlay 28,433 28,269 164 36,712 -
Total 481,505 453,907 27,598 449,720
54
CITY OF HOPKINS, MINNESOTA B-3
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL- CONTINUED
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance
favorable 1998
Budget Actual (unfavorable) Actual
PUBLIC WORKS (continued)
Tree Service:
Salaries and employee benefits $ 83,555 $ 78,667 $ 4,888 $ 85,859
Materials, supplies and services 34,336 37,577 (3,241) 36,604
Capital outlay 4,820 4,824 (4) 3,500
Total 122,711 121,068 1,643 125,963
TOTAL PUBLIC WORKS 1,645,325 1,610,219 35,106 1,619,260
RECREATION:
_ Activity Center
Salaries and employee benefits 153,955 149,323 4,632 146,210
Materials, supplies and services 97,391 90,091 7,300 64,799
Capital outlay 11,399 11,039 360 4,514
Total 262,745 250,453 12,292 215,523
Park and Recreation
Salaries and employee benefits 55,100 52,042 3,058 40,656
Materials, supplies and services 125,400 127,912 (2,512) 124,826
Capital outlay 100,243 100,240 3 100,100
Total 280,743 280,194 549 265,582
TOTAL RECREATION 543,488 530,647 12,841 481,105
UNALLOCATED:
Materials, supplies and services 74,825 13,837 60,988 20,255
Capital outlay 10,037 (10,037) 52,726
TOTAL UNALLOCATED 74,825 23,874 50,951 72,981
TOTAL EXPENDITURES $ 7,238,548 $ 7,101,515 $ 137,033 $ 6,959,045
55
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56 -
CITY OF HOPKINS, 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, 1999
With Comparative Totals for December 31, 1998
State Real Estate Hennepin Ar[ Tax
Chemical Economic Purchases County Facility Increment -
Assessment Development &Sales CDBG Construction Districts
ASSETS
Cash and investments $ 12,097 $ 600,125 $ 41,413 $ 14,799 $ 912 $ 1,562,237 -
Taxes receivable - - - - - 16,489
Special assessments receivable -
Accounts receivable - 7,922 - 5,131 - 12,138
Rehabilitation loans receivable - 610,132 - 144,268 - -
Accrued interest receivable 195 13,609 669 239 - 20,571
Due from other funds - 2,417,094 - - - 1,906,501
Due from other governments 587
Advance to other funds - 300,000
Long term loans receivable - - - - - 2,150,000
Restricted cash and investments - - - - - 200,000
Total Assets $ 12,879 $ 3,948,882 $ 42,082 $ 164,437 $ 912 $ 5,867,936
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ 9,902 $ - $ 5,131 $ - $ 328,519
Compensated absences payable - 25,758
Due to other funds - 2,072 - - 252,000 4,070,773
Due to other governments - - - 15,033 - -
Deferred revenue - 200,000
Total Liabilities - 237,732 - 20,164 252,000 4,399,292
Fund balances:
Reserved for loans receivable - 610,132 - 144,268 - -
Reserved for Patio Homes -
Reserved for Valley Park Condominiums
Reserved for Oaks of Mainstreet project -
Reserved for Business District Plan - - - - - 200,000
Reserved for advance to other funds - 300,000 - - - 2,150,000
Unreserved:
Designated for Bldg.Imprvmnts. -
Designated for Equipment -
Designated for Parking lot -
Designated for State Chemical Assess. 12,879
Designated for Housing Rehab - - - 5 - -
Undesignated - 2,801,018 42,082 - (251,088) (881,356)
Total Fund Balances 12,879 3,711,150 42,082 144,273 (251,088) 1,468,644
Total Liabilities and Fund Balance $ 12,879 $ 3,948,882 $ 42,082 $ 164,437 $ 912 $ 5,867,936
58
C
Depot
Housing Section 8 Coffee Totals
Para-Transit Rehab Parking Housing Cable TV House 1999 1998
$ 839 $ 1,302,144 $ 355,920 $ 4,247 $ 262,552 $ 1,416 $ 4,158,701 $ 3,286,788
- 16,489 -
1,313 - - 1,313 5,095
- 557 - - 28,705 1,232 55,685 59,220
- 35,185 - - - 789,585 977,998
- 23,697 5,490 - 4,241 - 68,711 36,346
- 9,317 - 1,250 - - 4,334,162 4,371,945
10,815 - - 7,351 - 39,166 57,919 93,367
- 300,000 300,000
_ 2,150,000 2,150,000
164,000 - - - - 364,000 365,622
$ 11,654 $ 1,534,900 $ 362,723 $ 12,848 $ 295,498 $ 41,814 $ 12,296,565 $ 11,646,381
$ 2,049 $ 2,250 $ 4,370 $ 2,318 $ 3,106 $ 7,579 $ 365,224 $ 339,360
1,605 3,781 1,080 1,110 1,827 3,119 38,280 7,943
8,000 - 9,317 - 15,000 4,357,162 4,538,991
250 - - - - 15,283 2,039
10,005 - - - 210,005 202,851
- 11,654 6,281 15,455 12,745 4,933 25,698 4,985,954 5,091,184
35,185 - - - 789,585 977,998
357,018 - - - - 357,018 164,000
110,507 110,507 -
_ 1,622
200,000 200,000
2,450,000 2,450,000
36,249
- - - 12,300 - 12,300 -
5,000 5,000 -
12,879
66,242 - - - 66,247 393,176
959,667 347,268 103 278,265 11,116 3,307,075 2,332,152
1,528,619 347,268 103 290,565 16,116 7,310,611 6,555,197
$ 11,654 $ 1,534,900 $ 362,723 $ 12,848 $ 295,498 $ 41,814 $ 12,296,565 $ 11,646,381
59
CITY OF HOPKINS, MINNESOTA —
TAX INCREMENT FUNDS
COMBINING BALANCE SHEET —
December 31, 1999
With Comparative Totals for December 31, 1998 —
Tax Tax Tax Tax
Increment Increment Increment Increment
1.1 1.2 2.1 2.6
ASSETS —
Cash and investments $ 760,912 $ 47,425 $ 467,663 $ 516
Taxes receivable 11,178 - 4,745
Accounts receivable - - - 12,138
Accrued interest receivable 8,402 - 7,554 -
Due from other funds 1,905,679
Due from other governments
Long term loans receivable 2,150,000
Restricted cash and investments - 200,000 - - —
Total Assets $ 2,686,1712,397,MT 5
LIABILITIES AND FUND BALANCE —
Liabilities:
Accounts payable $ - $ 72 $ 250,178 $ -
Due to other funds 1,500,000 2,063,879 - 505,679 —
Total Liabilities 1,500,000 2,063,951 250,178 505,679
Fund Balance(Deficit): —
Reserved for Oaks of Mainstreet Project
Reserved for Business District Redevop. - 200,000 -
Reserved for long term loan receivable - 2,150,000 - - —
Unreserved:
Undesignated 1,186,171 (2,016,526) 229,784 (493,025)
Total Fund Balance 1,186,171 333,474 229,784 (493,025)
Total Liabilities and Fund Balance $ 2,686,171 $ 2,397,425 $ 479,962 $ 12,654 —
60
Ca
Tax Tax Tax Tax
Increment Increment Increment Increment Totals
2.7 2.8 2.9 2.11 1999 1998
- $ 203,211 $ 50,367 $ 32,143 $ - $ 1,562,237 $ 1,175,970
566 - 16,489 -
_ - 12,138 12,219
3,282 814 519 - 20,571 11,084
822 - 1,906,501 1,910,279
- 55,628
2,150,000 2,150,000
200,000 201,622
206,493 51,181 34,050 - 5,867,9T6- 5,51 ,80
$ 48,557 $ 29,712 $ - $ - $ 328,519 $ 319,388
1,215 4,070,773 4,527,854
48,557 29,712 - 1,215 4,399,292 4,847,242
1,622
200,000 200,000
- 2,150,000 2,150,000
157,936 21,469 34,050 (1,215) (881,356) (1,682,062)
157,936 21,469 34,050 (1,215) 1,468,644 669,560
$ 206,493 $ 51,181 $ 34,050 $ - $ 5,867,936 $ 5,516,802
61
CITY OF HOPKINS,MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
State Real Estate Hennepin Art Tax
Chemical Economic Purchases County Facility Increment
Assessment Development &Sales CDBG Construction Districts
Revenues: _
Taxes:
Tax increment $ - $ $ - $ - $ - $ 2,203,348
Special assessments
Intergovernmental:
Federal - - 33,609 _
State of Minnesota 44,673 695,663
Other 168,371 -
Franchise fee
Fines and forfeitures
Charges for services - 156,139 3,700 3,879 _
Investment earnings 227 37,979 2,133 677 - 59,015
Other 11,728 - - 28,799 12,138
Total Revenues 44,900 1,069,880 5,833 38,165 28,799 2,274,501
Expenditures:
Salaries and employee benefits 14,846 84,233
Materials,supplies and services 17,175 72,283 28,291 511 108,354
Capital outlay:
Site improvements 868,000 - - - 519,958
Other equipment 468
Total Expenditures 32,021 1,024,984 28,291 511 628,312
Less expenditures charged to other
activities (62,760) _
Net 32,021 962,224 - 28,291 511 628,312
Excess(deficiency)of revenues over
expenditures 12,879 107,656 5,833 9,874 28,288 1,646,189
Other Financing Sources(Uses):
Proceeds from bond issuance -
Operating transfers in - - - 137,119
Operating transfers out - (137,119) - - - (1,263,600)
Total Other Financing Sources(Uses) - (137,119) - - - (1,126,481)
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing use 12,879 (29,463) 5,833 9,874 28,288 519,708
Fund Balance-January 1 ✓ - 3,740,613 / 36,249 ✓ 134,399 (279,376) 948,936
Residual equity transfer in(out)
Fund Balance-December 31 $ 12,879 $ 3,711,150 $ 42,082 $ 144,273 $ (251,088) $ 1,468,644
62
C-1
Depot
Housing Section 8 Coffee Totals
Para-Transit Rehab Parking Housing Cable TV House 1999 1998
$ _ $ - $ 2,203,348 $ 1,951,190
- 16,065 - - - 16,065 267,636
57,022 - 90,631 78,505
39,640 1,930 - - 44,519 826,425 103,128
10,000 178,371 58,911
_ - 113,455 - 113,455 103,397
- - 24,119 - - - 24,119 24,374
18,764 765,649 19,218 - - 106,104 1,073,453 4,151,104
94,181 15,592 - 12,827 - 222,631 314,665
890 - 21,657 75,212 613,389
58,404 862,650 74,994 57,022 126,282 182,280 4,823,710 7,666,299
7,450 60,148 65,154 58,287 49,574 88,988 428,680 370,928
54,515 23,795 56,918 10,204 51,617 96,022 519,685 507,621
4,369,148 - - 5,757,106 1,842,314
5,856 1,296 1,111 19,646 - 28,377 36,442
61,965 4,458,947 123,368 69,602 120,837 185,010 6,733,848 2,757,305
(62,760) -
61,965 4,458,947 123,368 69,602 120,837 185,010 6,671,088 2,757,305
(3,561) (3,596,297) (48,374) (12,580) 5,445 (2,730) (1,847,378) 4,908,994
4,030,000 - - - 4,030,000 -
603 - - - - - 137,722 615,603
(164,211) - - - (1,564,930) (7,359,806)
603 3,865,789 - - - - 2,602,792 (6,744,203)
.. (2,958) 269,492 (48,374) /(12,580) 5,445 /(2,730) 755,414 (1,835,209)
2,958 ,271,810 395,642 l - v,- 285,120 ✓ 18,846 6,555,197 9,330,442
.., - (12,683) 12,683 - - (940,036)
$ - $ 1,528,619 $ 347,268 $ 103 $ 290,565 $ 16,116 $ 7,310,611 $ 6,555,197
63
CITY OF HOPKINS, MINNESOTA
TAX INCREMENT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND -
CHANGES IN FUND BALANCE
Year Ended December 31, 1999 -
With Comparative Totals for Year Ended December 31, 1998
Tax Tax Tax Tax
Increment Increment Increment Increment
1.1 1.2 2.1 2.6
Revenues:
Taxes:
Tax increment $ 1,280,218 $ 66,450 $ 586,518 $ 6,886
State of Minnesota - _
Program income - _ _ _
Interest 33,779 1,523 14,185
Other - - - 12,138
Total Revenues 1,313,997 67,973 600,703 19,024
Expenditures:
Salaries and employee benefits - - _ _
Materials, supplies and services 6,273 4,306 54,641 10,692
Capital outlay: -
Land acquisitions - - _ _
Site improvements 58,563 105,227 271,108 -
Total Expenditures 64,836 109,533 325,749 10,692
Excess (deficiency)of revenues over 1,249,161 (41,560) 274,954 8,332
expenditures
Other Financing Sources(Uses)
Operating transfer in - 137,119 - -
Operating transfer to capital projects
Operating transfer to debt service (1,009,000) - (215,600) -
Total Other Financing Sources(Uses) (1,009,000) 137,119 (215,600) - -
Excess(deficiency)of revenues over
expenditures and other financing uses 240,161 95,559 59,354 8,332 -
Fund balance(deficit)- January 1 946,010 237,915 170,430 (501,357)
Fund balance(deficit)- December 31 $ 1,186,171 $ 333,474 $ 229,784 $ (493,025)
64
C-la
Tax Tax Tax Tax
Increment Increment Increment Increment Totals
2.7 2.8 2.9 2.11 1999 1998
$ 101,963 $ 45,534 $ 115,779 $ - $ 2,203,348 $ 1,951,190
4,041,005
8,178 1,183 167 - 59,015 170,775
- - 12,138 202,483
110,141 46,717 115,946 - 2,274,501 6,365,453
44,859
10,933 1,120 19,174 1,215 108,354 180,040
53,067 31,993 - - 519,958 1,842,314
64,000 33,113 19,174 1,215 628,312 2,067,213
46,141 13,604 96,772 (1,215) 1,646,189 4,2985240
- 137,119 615,603
(20,000)
(39,000) - (1,263,600) (7,071,566)
(39,000) - (1,126,481) (6,475,963)
46,141 13,604 57,772 (1,215) 519,708 (2,177,723)
111,795 7,865 (23,722) - 948,936 2,847,283
$ 157,936 $ 21,469 $ 34,050 $ (1,215) $ 1,468,644 $ 669,560
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance-- _
favorable 1998
Budget Actual (unfavorable) Actual
Revenues: _
Intergovernmental revenue:
State grant $ 55,000 $ 44,673 $ (10,327) $ 34,576
Interest _ 227 227 _
Total Revenues 55,000 44,900 (10,327) 34,576
Expenditures: _
Salaries and employee benefits 15,000 14,846 154 19,606
Materials, supplies and services 40,000 17,175 22,825 14,970
Total Expenditures 55,000 32,021 22,979 34,576 _
Excess of revenues over expenditures - 12,879 12,652 -
Fund Balance - January 1
Fund Balance- December 31 $ - $ 12,879 $ 12,652 $ -
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grants $ 695,663 $ 695,663 $ - $ -
Metropolitan Council Grant 168,371 168,371 - -
Charges for services 41,680 156,139 114,459 29,661
Interest 25,000 37,979 12,979 40,450
Other 50,000 11,728 (38,272) 401,653
Total Revenues 980,714 1,069,880 89,166 471,764
Expenditures:
Salaries and employee benefits 87,624 84,233 3,391 20,750
Materials, supplies and services 101,136 72,283 28,853 73,777
Capital outlay:
Site Improvements 864,034 868,000 (3,966) -
Other equipment 466 468 (2) 466
Total 15053,260 1,024,984 28,276 94,993
Less expenditures charged to other activities (62,860) (62,760) -
Net 990,400 962,224 28,276
Excess of revenues over expenditures (9,686) 107,656 117,442 376,771
Other Financing Sources(Uses):
Operating transfer toTax Increment Funds - (137,119) (137,119) (603)
Excess of revenues and other financing
sources over expenditures (9,686) (29,463) (19,777) 376,168
Fund Balance-January 1 3,740,613 3,740,613 - 3,364,445
Fund Balance- December 31 $ 3,730,927 $ 3,711,150 $ (19,777) $ 3,740,613
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance—
favorable 1998
Budget Actual (unfavorable) Actual
Revenues: —
Charges for services $ 3,700 $ 3,700 $ - $ 3,700
Interest 1,900 2,133 233 2,050
Total Revenues 5,600 5,833 233 5,750
Expenditures: _ _
Excess of revenues over expenditures 5,600 5,833 233 5,750
Fund Balance - January 1 36,249 36,249 - 30,499 —
Fund Balance - December 31 $ 41,849 $ 42,082 $ 233 $ 36,249
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
— 1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grant(Para-Transit) $ 42,400 $ 39,640 $ (2,760) $ 42,384
Charges for services 19,800 18,764 (1,036) 15,745
Interest - - -
Total Revenues 62,200 58,404 (3,796) 58,129
Expenditures:
Salaries and employee benefits 8,859 7,450 1,409 5,743
Materials, supplies and services 62,386 54,515 7,871 49,428
Total Expenditures 71,245 61,965 9,280 55,171
Excess(deficiency)of revenues over expenditures (9,045) (3,561) 5,484 2,958
-- Other Financing Sources:
Operating transfer from the General Fund 9,045 603 (8,442) -
Excess of revenues and other financing
sources over expenditures - (2,958) (2,958) 2,958
Fund Balance-January 1 - 2,958 2,958 -
Fund Balance- December 31 $ - $ - $ - $ 2,958
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998 _
Budget Actual (unfavorable) Actual
Revenues:
Special assessments $ - $ - $ - $ 267,636 _
Intergovernmental:
Federal - Section 8 - - - 52,799
State grants - 1,930 1,930
Charges for services 771,000 765,649 (5,351) 3,373
Interest 70,000 94,181 24,181 69,984
Other - 890 890 130
Total Revenues 841,000 862,650 21,650 393,922
Expenditures: _
Salaries and employee benefits 58,846 60,148 (1,302) 111,301
Materials, supplies and services 25,933 23,795 2,138 31,101
Capital outlay: _
Office equipment& furnishings - - - 9,189
Computers - - 2,104
Other equipment 5,871 5,856 15 5,871 _
Valley Park Condominiums 1,394,588 1,394,669 (81) -
Patio Homes 2,974,471 2,974,479 (8) -
Total Expenditures 4,459,709 4,458,947 762 159,566 _
Excess (deficiency) of revenues over expenditures (3,618,709) (3,596,297) 22,412 234,356
Other Financing Sources(Uses):
Proceeds from bond issuance 4,030,000 4,030,000 - -
Operating transfer to debt service, 1995 - Housing - - - (98,629) _
Operating transfer to debt service, 1997 - Housing - - - (169,008)
Operating transfer to debt service, 1999 - Housing (164,300) (164,211) 89 -
Total Other Financing Sources(Uses) 3,865,700 3,865,789 89 (267,637) _
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses 246,991 269,492 22,501 (33,281)
Fund Balance-January 1 1,271,810 1,271,810 - 1,305,091
Residual equity transfer out - (12,683) (12,683)
Fund Balance- December 31 $ 1,518,801 $ 1,528,619 $ 9,818 $ 1,271,810
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance-
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Special Assessments $ - $ 16,065 $ 16,065 $ -
Court fines 18,000 24,119 6,119 24,374
Charges for services 33,000 19,218 (13,782) 30,835
Interest 13,000 15,592 2,592 14,403
Total Revenues 64,000 74,994 10,994 69,612
Expenditures:
Salaries and employee benefits 56,201 65,154 (8,953) 72,564
Materials, supplies and services 71,143 56,918 14,225 40,588
Capital outlay:
Computers - - - 2,103
Other equipment 1,300 1,296 4 1,300
Total Expenditures 128,644 123,368 5,276 116,555
Deficiency of revenues over expenditures (64,644) (48,374) 16,270 (46,943)
Fund Balance- January 1 395,642 395,642 - 442,585
Fund Balance- December 31 $ 330,998 $ 347,268 $ 16,270 $ 395,642
71
CITY OF HOPKINS, MINNESOTA C_g
SECTION 8 HOUSING FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance—
favorable 1998
Budget Actual (unfavorable) Actual
Revenues: _
Intergovernmental:
Federal - Section 8 $ 90,000 $ 57,022 $ (32,978) $ -
Interest 3,000 - (3,000) -
Total Revenues 93,000 57,022 (35,978) -
Expenditures: _
Salaries and employee benefits 62,042 58,287 3,755 -
Materials, supplies and services 12,263 10,204 2,059 -
Capital outlay - 1,111 (1,111) _
Total Expenditures 74,305 69,602 5,814 -
Excess(deficiency)of revenues over expenditures 18,695 (12,580) (30,164)
Fund Balance-January 1 _ _
Residual equity transfer in - 12,683 12,683
Fund Balance-December 31 $ 18,695 $ 103 $ (18,592) $ -
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Franchise fees $ 95,000 $ 113,455 $ 18,455 $ 103,397
Charges for services - - - 289
Interest 10,000 12,827 2,827 14,462
Total Revenues 105,000 126,282 21,282 118,148
Expenditures:
Salaries and employee benefits 48,643 49,574 (931) 44,479
-' Materials, supplies and services 55,655 51,617 4,038 39,244
Capital outlay 27,055 19,646 7,409 15,409
Total Expenditures 131,353 120,837 10,516 99,132
Excess(deficiency)of revenues over expenditures (26,353) 5,445 31,798 19,016
Fund Balance- January 1 285,120 285,120 - 266,104
Fund Balance - December 31 $ 258,767 $ 290,565 $ 31,798 $ 285,120
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance-- _
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Intergovernmental:
State grant $ 76,638 $ 44,519 $ (32,119) $ 26,168
Other miscellaneous - 10,000 10,000 58,911 ._
Charges for services 170,700 106,104 (64,596) 22,680
Interest 1,000 - (1,000) 2,541
Contributions 8,500 20,939 12,439 3,064
Other _ 718 718
Total Revenues 256,838 182,280 (74,558) 113,364
Expenditures:
Salaries and employee benefits 160,704 88,988 71,716 51,626
Materials, supplies and services 50,003 96,022 (46,019) 42,892
Total Expenditures 210,707 185,010 25,697 94,518
Excess (deficiency)of revenues over expenditures 46,131 (2,730) (48,861) 18,846 _
Fund Balance-January 1 18,846 18,846 -
Fund Balance- December 31 $ 64,977 $ 16,116 $ (48,861) $ 18,846
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
-- Budget Actual (unfavorable) Actual
Revenues:
Taxes:
— Tax increment $ 1,086,209 $ 1,280,218 $ 194,009 $ 1,092,087
Interest 25,000 33,779 8,779 23,773
Total Revenues 1,111,209 1,313,997 202,788 1,115,860
Expenditures:
Salaries and employee benefits - - - 20,392
Materials, supplies and services 14,690 6,273 8,417 6,034
Capital outlay:
Public improvements - - - -
Construction 51,000 58,563 (7,563) 4,142
Total Expenditures 65,690 64,836 854 30,568
Excess of revenues over expenditures 1,045,519 1,249,161 203,642 1,085,292
Other Financing Sources(Uses):
Operating transfer to Bonds of 1993 - Refunding (135,000) (135,000) - (135,000)
Operating transfer to Bonds of 1993 - Refunding (184,000) (184,000) - (184,000)
Operating transfer to Bonds of 1990- Taxable (690,000) (690,000) - (360,000)
Total Other Financing Sources(Uses) (1,009,000) (1,009,000) - (679,000)
Deficiency of revenues and other financing sources
over expenditures and other financing uses 36,519 240,161 203,642 406,292
Fund Balance- January 1 946,010 946,010 - 539,718
Fund Balance- December 31 $ 982,529 $ 1,186,171 $ 203,642 $ 946,010
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues: _
Taxes:
Tax increment $ 59,841 $ 66,450 $ 6,609 $ 75,053
Interest - 1,523 1,523 393
Total Revenues 59,841 67,973 8,132 75,446
Expenditures: _
Materials, supplies and services 3,500 4,306 (806) 247
Capital outlay:
Public improvements 61,440 105,227 (43,787) -
Total Expenditures 64,940 109,533 (44,593) 247
Excess(deficiency)of revenues over expenditures (5,099) (41,560) (36,461) 75,199
Other Financing Sources(Uses)
Operating transfer in - 137,119 137,119
Excess(deficiency)of revenues over
expenditures and other financing uses (5,099) 95,559 100,658 75,199 _
Fund Balance- January 1 237,915 237,915 - 162,716
Fund Balance- December 31 $ 232,816 $ 333,474 $ 100,658 $ 237,915
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Taxes:
Tax increment $ 509,026 $ 586,518 $ 77,492 $ 604,556
Interest - 14,185 14,185 11,302
Total Revenues 509,026 600,703 91,677 615,858
Expenditures:
Salaries and employee benefits - - - 24,467
Materials, supplies and services 52,250 54,641 (2,391) 4,084
Capital outlay:
Site improvements- R.L. Johnson 276,152 271,108 5,044 230,222
Total Expenditures 328,402 325,749 2,653 258,773
Excess of revenues over expenditures 180,624 274,954 94,330 357,085
Other Financing Uses
Operating transfer to debt service, 1997 - HRA (215,600) (215,600) - (216,600)
Excess(deficiency)of revenues over
expenditures and other financing uses (34,976) 59,354 94,330 140,485
Fund Balance- January 1 170,430 170,430 - 29,945
Fund Balance- December 31 $ 135,454 $ 229,784 $ 94,330 $ 170,430
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance—
favorable 1998
Budget Actual (unfavorable) Actual
Revenues: _
Taxes:
Tax increment $ 10,329 $ 6,886 $ (3,443) $ 16,738
Interest 250 - 906
Other 8,695 12,138 3,443 3,634
19,274 19,024 - 21,278
Expenditures:
Materials, supplies and services 28,056 10,692 17,364 1,175
Excess of revenues over expenditures (8,782) 8,332 17,364 20,103
Fund balance(deficit)-January 1 (501,357) (501,357) - (521,460) —
Fund balance(deficit)-December 31 $ (510,139) $ (493,025) $ 17,364 $ (501,357)
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance--
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Taxes:
Tax increment $ 135,363 $ 101,963 $ (33,400) $ 108,149
Interest 7,000 8,178 1,178 6,115
Total Revenue 142,363 110,141 (32,222) 114,264
EXPENDITURES:
Materials, supplies and services 10,520 10,933 (413) 108,988
Capital outlay:
Site improvements 54,124 53,067 1,057 -
Total Expenditures 64,644 64,000 644 108,988
Excess of revenues over expenditures 77,719 46,141 (32,866) 5,276
Fund balance- January 1 111,795 111,795 - 106,519
Fund balance- December 31 $ 189,514 $ 157,936 $ (32,866) $ 111,795
79
CITY OF HOPKINS, MINNESOTA C-16
TAX INCREMENT 2.8 FUND —
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES 1N FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance-- —
favorable 1998
Budget Actual (unfavorable) Actual
Revenues: _
Taxes:
Tax increment $ 32,487 $ 45,534 $ 13,047 $ 46,415
Interest 500 1,183 683 938 —
Total Revenues 32,987 46,717 13,730 47,353
Expenditures: _
Materials, supplies and services 570 1,120 (550) 28,223
Site improvements 32,232 31,993 239 10,058
Total expenditures 32,802 33,113 (311) 38,281 —
Excess of revenues over expenditures 185 13,604 13,419 9,072
Fund balance(deficit)- January 1 7,865 7,865 - (1,207)
Fund balance(deficit)- December 31 $ 8,050 $ 21,469 $ 13,419 $ 7,865
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, 1999
With Comparative Actual Amounts for Year Ended December 31, 1998
1999
Variance
favorable 1998
Budget Actual (unfavorable) Actual
Revenues:
Taxes
Tax increment $ 102,299 $ 115,779 $ 13,480 $ 8,192
Development fees - - - 4,041,005
Interest - 167 167 126,876
Other - - - 111,139
Total Revenues 102,299 115,946 13,647 4,287,212
Expenditures
Materials, supplies and services 20,000 19,174 826 12,704
Capital outlay:
Oaks of Mainstreet redevelopment project - - - 1,521,930
Total Expenditures 20,000 19,174 826 1,534,634
Excess of revenues over expenditures 82,299 96,772 14,473 2,752,578
Other Financing Sources(Uses):
Operating transfer out - - - (20,000)
Operating transfer out for debt service (39,000) (39,000) - (6,175,691)
Total Other Financing Sources(Uses) (39,000) (39,000) - (6,195,691)
Excess(deficiency)of revenues and other financing
sources over expenditures and other financing uses 43,299 57,772 14,473 (3,443,113)
Fund Balance(deficit)- January 1 (23,722) (23,722) - 3,419,391
Fund Balance-December 31 $ 19,577 $ 34,050 $ 14,473 $ (23,722)
81
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82 "'
CITY OF HOPKI NS, 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 S14EET
December 31, 1999 _
With Comparative Totals for December 31, 1998
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
A T
Cash and investments $ 49,779 $ 186,703 $ 67,837 $ 70,125 $ 66,650 $ 193,334 $ 182,683
Taxes receivable 736 - 1,485
Special assessments receivable
Accrued interest receivable 804 3,016 1,096 1,133 1,077 3,123 4,308
Due from other funds _
Restricted cash and investments _
Total Assets $ 51,319 $ 189,719 $ 68,933 $ 71,258 $ 67,727 $ 196,457 $ 188,476
LIABILITIES AND FUND BALANCE
Liabilities:
Due to other funds $ $ $ $ $ g $
Deferred revenue 137 1,006
Total Liabilities 137 - 1,006
Fund Balance:
Reserved for debt service 51,182 189,719 68,933 71,258 67,727 196,457 187,470
Total Liabilities and Fund Balance $ 51,319 $ 189,719 $ 68,933 $ 71,258 $ 67,727 $ 196,457 $ 188,476
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 1999 1998
$ 191,927 $ 103,119 $ 169,080 $ 121,764 $ 74,992 $ 92,711 $ 19,255 $ 1,589,959 $ 1,305,123
_ 7,965 10,186 7,456
1,187,431 3,152,896 2,865,360 5,118,428 12,324,115 4,609,467
3,100 1,666 2,731 1,967 1,211 1,498 311 27,041 13,027
2,310
120,368
$ 202,992 $ 1,292,216 $ 171,811 $ 3,276,627 $ 2,941,563 $ 5,212,637 $ 19,566 $ 13,951,301 $ 6,057,751
$ $ $ $ - $ $ $ $ $ 2,035
4,672 1,186,325 3,149,713 2,865,360 5,118,428 12,325,641 4,613,835
4,672 1,186,325 3,149,713 2,865,360 5,118,428 12,325,641 4,615,870
198,320 105,891 171,811 126,914 76,203 94,209 19,566 1,625,660 1,441,881
$ 202,992 $ 1,292,216 $ 171,811 $ 3,276,627 $ 2,941,563 $ 5,212,637 $ 19,566 $ 13,951,301 $ 6,057,751
85
CITY OF HOPKINS,MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
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 $ 42,460 $ - $ - $ - $ - $ - $ 33,831
Fiscal disparities 6,811 - - 5,449 _
Special assesments
Intergovernmental:
State of Minnesota
Investment earnings 1,009 2,043 2,797 451 3,142 7,424 5,873
Total Revenues 50,280 2,043 2,797 451 3,142 7,424 45,153
Expenditures:
Principal payments 45,000 645,000 20,000 155,000 135,000
Interest on bonds 7,447 42,087 50,823 135,890 28,500 26,099 66,183
Fiscal agent charges 300 690 150 300 150 300 300
Total Expenditures 52,747 687,777 50,973 156,190 28,650 181,399 201,483
Excess(deficiency)of revenues over
expenditures (2,467) (685,734) (48,176) (155,739) (25,508) (173,975) (156,330)
Other Financing Sources:
Operating transfer from P.I.R.Fund - - - - 168,000
Operating transfer from Tax Increment 1.1 690,000 - 135,000 - 184,000 -
Operating transfer from Tax Increment 2.1 - - - -
Operating transfer from Tax Increment 2.3 - -
Operating transfer from Tax Increment 2.9 - - 25,000 14,000 -
Operating transfer from Housing Rehab - -
Total Other Financing Sources - 690,000 25,000 135,000 14,000 184,000 168,000
Excess(deficiency)of revenues and other
financing sources over expenditures (2,467) 4,266 (23,176) (20,739) (11,508) 10,025 11,670
Fund Balance-January 1 53,649 185,453 92,109 91,997 79,235 186,432 175,800
Residual equity transter - - - -
Fund Balance-December 31 $ 51,182 $ 189,719 $ 68,933 $ 71,258 $ 67,727 $ 196,457 $ 187,470
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 1999 1998
$ 204,777 $ - $ $ - $ $ $ - $ 281,068 $ 280,889
32,694 - - - 44,954 50,073
98,066 - 175,013 - - 273,079
3,007 3,436 2,768 3,033 3,359 2,917 605 41,864 19,194
240,478 101,502 2,768 178,046 3,359 2,917 605 640,965 350,156
165,000 30,000 110,000 35,000 - - - 1,340,000 6,695,000
85,427 58,673 102,793 125,019 - - 728,941 1,098,309
300 150 150 152 75 - - 3,017 4,607
250,727 88,823 212,943 160,171 75 - 2,071,958 7,797,916
(10,249) 12,679 (210,175) 17,875 3,284 2,917 605 (1,430,993) (7,447,760)
_ 18,961 186,961 168,600
1,009,000 679,000
215,600 - - - 215,600 216,600
275
39,000 6,175,691
72,919 91,292 - 164,211 267,637
215,600 72,919 91,292 18,961 1,614,772 7,507,803
(10,249) 12,679 5,425 17,875 76,203 94,209 19,566 183,779 60,043
208,569 93,212 166,386 109,039 - - - 1,441,881 1,381,838
$ 198,320 $ 105,891 $ 171,811 $ 126,914 $ 76,203 $ 94,209 $ 19,566 $ 1,625,660 $ 1,441,881
87
CITY OF HOPKINS, MINNESOTA -
COMPREHENSIVE ANNUAL FINANCIAL REPORT -
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature. (Special revenue and enterprise _
fund resources are not included in this category.) These funds evolve from the
needs for special accounting for bond proceeds, grants and contributions for the
acquisition of capital assets. _
Park Improvements Fund - This fund was established to record construction and
improvement costs for park facilities. _
Municipal State Aid For Highway Construction Fund - This fund is used to account
for the City's allocation of the state collected highway user tax. The allocation is —
based on population and need for construction of designated state aid streets in the
City.
Permanent Improvement Revolving Fund - The Permanent Improvement Revolving
Fund is employed to finance and account for the construction and financing of _
certain public improvements such as residential streets, sidewalks, or storm sewers
or the provision of services which are to be paid for wholly or in part from special
assessments levied against benefitted property. The fact that special assessment —
improvements are paid for completely or in part by property owners in a limited
geographical area deemed to be specially benefitted distinguishes them from
improvements which benefit the entire community and which are paid for out of _
general revenues or through the issuance of general obligation bonds.
The PIR Fund also accounts for the collection of special assessments and other —
revenues pledged for the payment of principal and interest on outstanding special
assessment bonds.
88
CITY OF HOPKINS,MINNESOTA E
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1999
With Comparative Totals for December 31, 1998
Municipal Permanent
Park State Aid Improvement Totals
Improvements Construction Revolving 1999 1998
_
ASSETS
Cash and investments $ 34,641 $ 2,037,361 $ 941,593 $ 3,013,595 $ 1,940,803
Special assessments receivable - - 2,243,626 2,243,626 2,328,409
Accounts receivable - - 95,182 95,182 105,001
Accrued interest receivable 560 34,183 15,279 50,022 23,059
Due from other funds - - 177,718 177,718 501,759
Due from other governments - 31,417 206,801 238,218 422,572
Total Assets $ 35,201 $ 2,102,961 $ 3,680,199 $ 5,818,361 $ 5,321,603
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ 5,703 $ 3,164 $ 8,867 $ 3,345
Retainage payable - - 54,214 54,214 17,288
Due to other funds - - - - 477,980
Deferred revenue - 1,270 2,230,919 2,232,189 2,726,564
Total Liabilities - 6,973 2,288,297 2,295,270 3,225,177
Fund Balance:
Unreserved:
Designated for street improvements - 2,095,988 1,391,902 3,487,890 2,069,258
Undesignated 35,201 - - 35,201 27,168
Total Fund Balance 35,201 2,095,988 1,391,902 3,523,091 2,096,426
Total Liabilities and Fund Balance $ 35,201 $ 2,102,961 $ 3,680,199 $ 5,818,361 $ 5,321,603
89
CITY OF HOPKINS,MINNESOTA E-1 -
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND _
CHANGES IN FUND BALANCE
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
Municipal Permanent -
Park State Aid Improvement Totals
Improvements Construction Revolving 1999 1998
Revenues: _
Special assessments $ - $ - $ 585,099 $ 585,099 $ 555,012
Intergovernmental:
State of Minnesota - 836,080 206,801 1,042,881 36,810 _
Charges for services 6,200 - - 6,200 2,100
Investment earnings 1,833 39,923 55,249 97,005 154,547
Total Revenues 8,033 876,003 847,149 1,731,185 748,469
Expenditures:
Projects - 12,627 23,172 35,799 25,677
Street improvements - 45,200 988,837 1,034,037 2,073,530 -
Landfill - - - - 31,379
Alley reconstruction - - 75,441 75,441 75,640
Total Expenditures - 57,827 1,087,450 1,145,277 2,206,226
Excess(deficiency)of revenues over expenditures 8,033 818,176 (240,301) 585,908 (1,457,757)
Other Financing Sources(Uses) -
Proceeds from bond issuance - - 850,000 850,000 -
Operating transfers from TIF District - - - - 20,000
Operating transfers from Enterprise Funds - - 177,718 177,718 154,445 -
Operating transfers from State Construction Fund - - - - 347,314
Operating transfers to P.I.R.Fund - - - - (347,314)
Operating transfers to Debt Service- 1992 - - (186,961) (186,961) (168,600)
Total Other Financing Sources(Uses) - - 840,757 840,757 5,845
Excess of revenues and other financing sources
over expenditures and other financing uses 8,033 818,176 600,456 1,426,665 (1,451,912)
Fund Balance-January 1 27,168 1,277,812 791,446 2,096,426 3,175,871
Prior period adjustment - - - - 372,467
Fund Balance-January 1,as restated 27,168 1,277,812 791,446 2,096,426 3,548,338
Fund Balance-December 31 $ 35,201 $ 2,095,988 $ 1,391,902 $ 39523,091 $ 2,096,426 -
90
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units which render services to the general public on a
user charge basis. Records are maintained on the accrual basis of accounting.
The Authority for these types of funds is derived from Section 11.01 of the City
Charter which allows for utility or other public service enterprise funds.
The City has seven Enterprise Funds:
Water Utility Fund
Sewer Utility Fund
_ Refuse Utility Fund
Storm Sewer Utility Fund
Pavilion/Ice Arena Fund
Art Center Fund
Housing Authority Fund
91
CITY OF HOPKINS,MINNESOTA -
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1999
With Comparative Totals for December 31, 1998
Water Sewer Refuse -
ASSETS
Utility Utility Utility
Current assets: _
Cash and cash equivalents $ 566,716 $ 1,395,148 $ 515,117
Accounts receivable 92,064 172,765 96,180
Accrued interest receivable 8,566 15,304 8,216
Due from other funds
Due from other governments
Inventory 13,873 7,524 3,366
Prepaid expenses - - 200
Total current assets 681,219 1,590,741 623,079 -
Property and equipment
Land and land improvements 16,447 5,150 -
Buildings and structures 44,486 - 302,727 _
Distribution system 6,115,660 4,796,156 -
Water meters 159,402 -
Machinery and equipment 269,048 209,083 523,286
Construction in progress 25,048
Total property and equipment 6,630,091 5,010,389 826,013
Less accumulated depreciation 2,939,590 2,355,425 351,765
Net property and equipment 3,690,501 2,654,964 474,248
Other Assets:
Long-term receivable-Metro Waste Control Comm. - 26,421 -
Restricted cash and cash equivalents-debt service - - _
Total other assets - 26,421-
Total Assets $ 4,371,720 $ 4,272,126 $ 1,097,327
LIABILITIES AND FUND EQUITY -
Current Liabilities:
Accounts payable $ 50,915 $ 9,843 $ 28,776
Compensated absences payable 28,199 31,994 10,077
Due to other funds 95,606 75,963 - -
Due to other governments 610 20,000 3,967
Deferred revenue -
Accrued interest payable -
Bonds payable - - _ -
Total Current Liabilities 175,330 137,800 42,820
Long-term Liabilities:
Deferred revenue - 26,421 - -
Advance from other funds(net of current portion) - - -
Bonds payable(net of current portion) - - -
Total Long-term Liabilities - 26,421-
Total Liabilities 175,330 164,221 42,820
Fund Equity:
Contributed capital-governmental grant - 472,684 - -
Contributed capital - - -
Retained Earnings:
Reserved for debt service - - -
Unreserved 4,196,390 3,635,221 1,054,507 -
Total Retained Earnings 4,196,390 3,635,221 1,054,507
Total Fund Equity 4,196,390 4,107,905 1,054,507
Total Liabilities and Fund Equity $ 4,371,720 $ 4,272,126 $ 1,097,327 _
92
F
Storm Sewer Pavilion/ Housing Totals
Utility Ice Arena Art Center Authority 1999 1998
$ 565,409 $ 59,944 $ 198,086 $ 71,866 $ 3,372,286 $ 2,216,808
109,689 8,153 368 36,801 516,020 396,947
20,450 965 3,505 - 57,006 25,806
530,000
10,600 4,785 - - 15,385 39,474
- 24,763 24,967
5,999 6,199 6,123
706,148 73,847 201,959 114,666 3,991,659 3,240,125
300,000 - 321,597 321,597
2,363,266 3,820,618 - 6,531,097 6,531,097
5,979,788 52,726 - - 16,944,330 15,809,989
- 159,402 99,200
-. 10,612 62,410 26,470 - 1,100,909 843,714
417,623 - - - 442,671 936,196
6,408,023 21478,402 4,147,088 - 25,500,006 24,541,793
909,743 471,433 159,525 - 7,187,481 6,600,074
"- 5,498,280 2,006,969 3,987,563 - 18,312,525 17,941,719
- 26,421 51,803
250,000 - - - 250,000 250,000
250,000 - - - 276,421 301,803_
$ 6,454,428 $ 2,080,816 $ 4,189,522 $ 114,666 $ 22,580,605 $ 21,483,647
$ 25,117 $ 11,786 $ 14,511 $ 14,087 $ 155,035 $ 152,959
4,489 10,930 23,659 - 109,348 87,247
6,149 - - - 177,718 684,445
140 - - 24,717 24,770
484 100,496 - 100,980 49,998
44,808 - - - 44,808 44,808
205,000 - - - 205,000 140,000
285,563 23,340 138,666 14,087 817,606 1,184,227
- 26,421 51,803
- - 894,347 - 894,347 915,000
3,415,000 - - - 3,415,000 2,075,000
3,415,000 - 894,347 - 4,335,768 3,041,803
3,700,563 -T3-,3 4-0 1,033,013 14,087 5,153,374 4,226,030
500,000 - 972,684 972,684
2,085,025 3,320,618 - 5,405,643 5,405,643
250,000 - - - 250,000 250,000
2,503,865 (27,549) (664,109) 100,579 10,798,904 10,629,290
2,753,865 (27,549) (664,109) 100,579 11,048,904 10,879,295-
2,753,865 2,057,476 3,156,509 100,579 17,427,231 17,257,617
$ 6,454,428 $ 2,080,816 $ 4,189,522 $ 114,666 $ 22,580,605 $ 21,483,647
93
CITY OF HOPKINS, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,
EXPENSES,AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998 --
Water Sewer Refuse
Utility Utility Utility
Operating revenues:
Charges for services $ 854,016 $ 1,419,953 $ 482,445
Admissions and fees - - 81,335
Rental
Leases 11,907 - -
Other 3,632 26,015 4,298
Total Operating Revenues 869,555 1,445,968 568,078
Operating expenses(excluding depreciation)
Salaries and employee benefits 269,161 176,737 178,253
Materials,supplies and services 401,016 259,220 287,726
Disposal costs - 770,854 105,803
Total Operating Expenses(excluding depreciation) 670,177 1,206,811 571,782
Operating income(loss)before depreciation expense 199,378 239,157 (3,704)
Depreciation expense 174,377 98,130 48,179
Operating income(loss) 25,001 141,027 (51,883)
Nonoperating revenue(expense)
Interest income 29,758 44,400 30,569
Interest/fiscal agent expense _ _ _ _
Intergovernmental grants - - 30,220
Bond issuance expense _ _ _
Proceeds from sale of assests 1,750 - -
Other _ _ _
Total nonoperating revenues(expenses) 31,508 44,400 60,789
Income before other financing sources(uses) 56,509 185,427 8,906
Other financing sources(uses) _
Operating transfer from Sanitary Sewer - -
Operating transfer to Storm Sewer - - -
Operating transfer to PIR fund (95,606) (75,963)
Operating transfer to TIF District - -
Total other financing sources(uses) (95,606) (75,963) -
Net Income(loss) (39,097) 109,464 8,906
Fund Equity
Retained Earnings-January 1 4,235,487 3,525,757 1,045,601
Retained Earnings-December 31 $ 4,196,390 $ 3,635,221 $ 1,054,507
94
F-1
Storm Sewer Pavilion/ Art Housing Totals
Utility Ice Arena Center Authority 1999 1998
$ 639,103 $ - $ - $ 208,190 $ 3,603,707 $ 3,514,392
44,847 50,271 - 176,453 145,153
_ - 189,090 36,329 - 225,419 229,497
148,948 - 160,855 149,338
4,200 17,177 2,961 6,889 65,172 96,865
643,303 251,114 238,509 215,079 4,231,606 4,135,245
27,082 168,042 179,068 33,206 1,031,549 1,011,459
57,199 79,819 153,327 176,216 1,414,523 1,299,435
876,657 1,006,247
84,281 247,861 332,395 209,422 3,322,729 3,317,141
559,022 3,253 (93,886) 5,657 908,877 818,104
138,820 57,537 79,817 - 596,860 498,488
420,202 (54,284) (173,703) 5,657 312,017 319,616
38,020 2,999 12,207 1,402 159,355 145,144
(98,750) - (23,912) - (122,662) (125,370)
7,467 37,687 46,773
(40,815) - - - (40,815) -
1,750 -
7,354
(101,545) 2,999 (11,705) 8,869 35,315 73,901
318,657 (51,285) (185,408) 14,526 347,332 393,517
- - 600,000
- (600,000)
(6,149) - - - (177,718) (154,445)
(615,000)
(6,149) - - - (177,718) (769,445)
312,508 (51,285) (185,408) 14,526 169,614 (375,928)
2,441,357 23,736 (478,701) 86,053 10,879,290 11,255,218
$ 2,753,865 $ (27,549) $ (664,109) $ 100,579 $ 11,048,904 $ 10,879,290
95
CITY OF HOPKINS,MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
Water Sewer Refuse
Utility Utility Utility
Cash Flows from Operating Activities:
Operating income(loss) $ 25,001 $ 141,027 $ (51,883)
Adjustments to reconcile operating income(loss)to net cash
provided by operating activities:
Depreciation expense 174,377 98,130 48,179
(Increase)decrease in:
Accounts and accrued interest receivable (11,077) (40,518) (48,711)
Due from other funds - 530,000 -
Due from other governments - 28,609 -
Inventory 961 1,861 (2,618)
Prepaid expense _
Due from Metropolitan Waste Control Commission - 25,382 -
Accounts,compensated absences and accrued interest payable 24,932 (5,511) 12,053
Due to other funds 88,645 71,568 (7,788)
Due to other governments 106 - (73)
Deferred revenue - (25,382) -
Other
Cash Provided by(used)Operating Activities 302,945 825,166 (50,841)
Cash Flows from Noncapital Financing Activities:
Intergovernmental grants - - 30,220
Operating transfer in
Operating transfer out (95,606) (75,963) -
T
Cash Provided by(used)Noncapital Financing Activities (95,606) (75,963) 30,220
Cash Flows from Capital and Related Financing Activities:
Purchases of property and equipment (135,281) (106,032) (169,988)
Sale of property and equipment 1,750 - -
Proceeds from issuance of bonds
Interest and other payments
Bond payments
Cash Provided by(used)in Capital and Related Financing Activities (133,531) (106,032) (169,988)
Cash Provided by Investing Activities-interest received 29,758 44,400 30,569
Increase(decrease)in Cash and Cash Equivalents 103,566 687,571 (160,040)
Cash and Cash Equivalents-January 1 463,150 707,577 675,157
Cash and Cash Equivalents-December 31 $ 566,716 $ 1,395,148 $ 515,117
Cash and Cash Equivalents Components:
Cash and Cash Equivalents 566,716 1,395,148 515,117
Restricted Cash and Cash Equivalents - - -
Total Cash and Cash Equivalents $ 566,716 $ 1,395,148 $ 515,117
96
F-2
Storm Sewer Pavilion/ Art Housing Totals
Utility Ice Arena Center Authority
1999 1999-
$ 420,202 $ (54,284) $ (173,703) $ 5,657 $ 312,017 $ 319,616
138,820 57,537 79,817 - 596,860 498,488
(81,837) 23,105 (426) 9,191 (150,273) 26,222
- 530,000 (100,000)
(4,520) - - 24,089 (28,087)
- 204 1,982
(76) (76) 2,023
- 25,382 24,406
(10,538) 4,632 10,208 (11,599) 24,177 3,756
(659,152) - (20,653) - (527,380) 1,169,445
(86) - - (53) 21,157
484 50,498 - 25,600 25,592
- - - - 2,867
(192,505) 26,868 (54,259) 3,173 860,547 1,967,467
- 7,467 37,687 46,773
- - - - - - 600,000
(6,149) - - - (177,718) (1,369,445)
(6,149) - - 7,467 (140,031) (722,672)
(539,914) (4,574) (11,877) - (967,666) (1,683,790)
- - - 1,750 2,354
1,504,185 - - - 1,504,185
(98,750) - (23,912) - (122,662) (125,370)
(140,000) - - - (140,000) (135,000)
725,521 (4,574) (35,789) - 275,607 (1,941,806)
38,020 2,999 12,207 1,402 159,355 145,144
564,887 25,293 (77,841) 12,042 1,155,478 (551,867)
250,522 34,651 275,927 59,824 2,466,808 3,018,675
$ 815,409 $ 59,944 $ 198,086 $ 71,866 $ 3,622,286 $ 2,466,808
565,409 59,944 198,086 71,866 3,372,286 2,216,808
250,000 - - - 250,000 250,000
$ 815,409 $ 59,944 $ 198,086 $ 71,866 $ 3,622,286 $ 2,466,808
97
CITY OF HOPKI NS, 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
BALANCE SHEET
December 31, 1999
With Comparative Totals for December 31, 1998
1999 1998
Equipment Equipment
Replacement Replacement
ASSETS
Current assets:
Cash and cash equivalents $ 1,444,124 $ 1,139,590
Accounts receivable 457 680
Accrued interest receivable 23,286 9,590
Total current assets 1,467,867 1,149,860
-- Property and equipment
Machinery and equipment 4,124,051 3,921,267
Total property and equipment 4,124,051 3,921,267
Less accumulated depreciation (2,025,874) (1,686,066)
Net property and equipment 2,098,177 2,235,201
Total Assets $ 3,566,044 $ 3,385,061
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable $ 2,361 $ 8,714
Fund Equity:
Contributed capital 3,236,362 3,236,362
_ Retained Earnings:
Unreserved 327,321 139,985
Total Retained Earnings 327,321 139,985
Total Fund Equity 3,563,683 3,376,347
Total Liabilities and Fund Equity $ 3,566,044 $ 3,385,061
99
CITY OF HOPKINS, MINNESOTA G-1
INTERNAL SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1999
With Comparative Totals for December 31, 1998
1999 1998
Equipment Equipment —
Replacement Replacement
Operating revenues:
Charges for services $ 485,400 $ 443,492 —
Operating expenses(excluding depreciation):
Materials, supplies and services 18,852 22,152 —
Operating income before depreciation 466,548 421,340
Depreciation expense 339,808 318,640
Operating income 126,740 102,700 —
Nonoperating revenue:
Interest 43,419 15,255 —
Other 14,677 22,030
Total nonoperating revenues 58,096 37,285
Income before other financing sources 184,836 139,985
Operating transfer in 2,500 - —
Net Income 187,336 139,985
Fund Equity:
Retained earnings- January 1 139,985 -
Retained earnings- December 31 $ 327,321 $ 139,985
100
CITY OF HOPKINS, MINNESOTA G-2
INTERNAL SERVICE FUND
STATEMENT OF CASH FLOWS
Year Ended December 31, 1999
With Comparative Totals for Year Ended December 31, 1998
1999 1998
— Equipment Equipment
Replacement Replacement
Cash Flows from Operating Activities:
Operating income $ 126,740 $ 102,700
Adjustments to reconcile operating income(loss)to net cash
provided by operating activities:
Depreciation expense 339,808 318,640
(Increase)decrease in:
Accounts and accrued interest receivable (13,473) (10,270)
Accounts,compensated absences and accrued interest payable (6,353) 8,714
Cash Provided by Operating Activities 446,722 419,784
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 (202,784) (257,515)
Sale of property and equipment 14,677 22,030
Additions to contributed capital - 940,036
Cash Provided by(used)in Capital and Related Financing Activities (188,107) 704,551
Cash Provided by Investing Activities- interest received 43,419 15,255
Increase in Cash and Cash Equivalents 304,534 1,139,590
Cash and Cash Equivalents-January 1 1,139,590 -
Cash and Cash Equivalents-December 31 $ 1,444,124 $ 1,139,590
101
CITY OF HOPKINS, MINNESOTA -
COMPREHENSIVE ANNUAL FINANCIAL REPORT -
ACCOUNT GROUPS
General Fixed Assets - Those fixed assets of a governmental jurisdiction which are
not accounted for in an Enterprise Fund. To be classified as a fixed asset in this
category, a specific piece of property must possess three attributes: (1) tangible
nature; (2) a life longer than the current fiscal year; and (3) a significant value.
General Long-Term Debt - General obligation bonds and other forms of long-term _
debt supported by general revenues are obligations of a governmental unit as a
whole and not its individual constituent funds. Moreover, the proceeds of such _
debt may be spent on facilities which are utilized in the operations of several funds.
For these reasons, the amount of unmatured, long-term debt indebtedness which is
backed by the full faith and credit of the government should be recorded and —
accounted for in a separate self-balancing group of accounts titled the "General
Long-Term Debt Account Group". This debt group will include, in addition to the
conventional general obligation bonds, time warrants and notes which have a
maturity of more than one year from date of issuance. This account group does not
include general obligation water and sewer bonds, which are reflected in their
respective funds.
102
_ H
CITY OF HOPKINS, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS
December 31, 1999
With Comparative Amounts for December 31, 1998
1999 1998
GENERAL FIXED ASSETS:
Land $ 3,970,233 $ 3,969,249
Buildings 2,555,855 2,434,855
Improvements other than buildings 16,545,533 14,979,037
Vehicles 288,719 340,657
Machinery and equipment 1,505,945 1,420,848
Construction in progress - 303,047
Total General Fixed Assets $ 24,866,285 $ 23,447,693
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 2,377,923 1,944,094
Special Revenue Funds 4,659,150 4,645,749
Capital Projects Funds 6,459,413 6,077,090
Special Assessments 5,978,673 5,086,585
Construction in progress - 303,047
Total Investment in General Fixed Assets $ 24,866,285 $ 23,447,69T-
103
H-1
CITY OF HOPKINS, MINNESOTA
GENERAL FIXED ASSETS ACCOUNT GROUP
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1999
Buildings Improvements Equipment
and Other than and
Function and Activity Total Land Structures Buildings Vehicles —
Administration $ 1,898,170 $ 1,181,828 $ - $ 544,054 $ 172,288
Finance 64,949 - - - 64,949
Government buildings 674,584 - 606,687 - 67,897
Community services 58,118 - - - 58,118
Planning& Econ. Dev. 1,425,111 1,410,799 - - 14,312
Activity center 912,002 - 841,370 - 70,632 —
Police 476,857 - 20,649 11,470 444,738
Fire 96,262 - - - 96,262 —
Public works 16,351,228 289,088 788,748 14,803,890 469,502 —
Parks 2,909,004 1,088,518 298,401 1,186,119 335,966
Total $ 24,866,285 $ 3,970,233 $ 2,555,855 $ 16,545,533 $ 1,794,664
104
H-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, 1999
General General
Fixed Assets Fixed Assets
January 1, December 31,
Function and Activity 1999 Additions Deductions 1999
Administration $ 1,873,524 $ 33,664 $ 9,018 $ 1,898,170
Finance 62,528 2,421 - 64,949
Government buildings 663,597 10,987 674,584
Community services 22,183 35,935 - 58,118
Planning& Economic Development 1,418,189 6,922 - 1,425,111
Activity center 902,367 9,635 - 912,002
Police 529,415 959 53,517 476,857
Fire 96,776 514 96,262
Public works 15,071,943 1,279,285 - 16,351,228
Parks 2,504,124 404,880 - 2,909,004
Construction in progress 303,047 100,000 403,047 -
Total $ 23,447,693 $ 1,884,688 $ 466,096 $ 24,866,285
105
I
CITY OF HOPKINS, MINNESOTA
GENERAL LONG-TERM DEBT ACCOUNT GROUP
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1999
With Comparative Amounts for December 31, 1998
1999 1998
AMOUNT AVAILABLE AND TO BE PROVIDED FOR _
THE PAYMENT OF GENERAL LONG-TERM DEBT•
Amount available in debt service funds $ 1,625,660 $ 1,441,881
Amount available in special revenue funds - 1,622
Amount to be provided by tax levies,tax increments, annual fees
and proceeds of real estate sales 16,287,883 12,930,040 _
Total Available and to be Provided $ 17,913,543 $ 14,373,543
GENERAL LONG-TERM DEBT PAYABLE•
General obligation redevelopment bonds payable $ 15,758,543 $ 12,888,543
Special assessment debt with governmental commitment 2,155,000 1,485,000 ,
Total General Long-Term Debt Payable $ 17,913,543 $ 14,373,543
106
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CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE --
December 31, 1999
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)
108 —
Schedule 1
Authorized Principal
Annual and Due in
Serial Payments Issued Retired Outstanding 2000
40,000 (2002-2003) $ 1,465,000 $ - $ 1,465,000 $ -
45,000 (2004-2005)
50,000 (2006)
55,000 (2007-2008)
60,000 (2009)
65,000 (2010-2011)
70,000 (2012)
75,000 (2013)
80,000 (2014)
85,000 (2015)
90,000 (2016)
_ 95,000 (2017)
100,000 (2018)
110,000 (2019)
115,000 (2020)
125,000 (2021)
65,000 (2002) $ 2,565,000 $ - $ 2,565,000 $ -
70,000 (2003)
75,000 (2004)
80,000 (2005)
85,000 (2006)
90,000 (2007)
95,000 (2008)
100,000 (2009)
110,000 (2010)
115,000 (2011)
120,000 (2012)
130,000 (2013)
140,000 (2014)
150,000 (2015)
160,000 (2016)
170,000 (2017)
180,000 (2018)
195,000 (2019)
_ 210,000 (2020)
225,000 (2021)
109 CONTINUED
CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE —
December 31, 1999
Final
Issue Maturity
Date Date Interest Rates& Dates _
1997A Tax Increment 1-01-97 02-01-12 4.35 - 5.25% (2/1; 8/1) _
1997B Taxable Housing Improvement Area Bonds 05-15-97 02-01-18 6.65 - 7.85% (2/1; 8/1)
too
fto
1996C Tax Increment 10-01-96 02-01-16 5.70% (2/1; 8/1)
110
Schedule 1
Authorized Principal
- Annual and Due in
Serial Payments Issued Retired Outstanding 2000
115,000 (2000) $ 2,240,000 $ 195,000 $ 2,045,000 $ 115,000
120,000 (2001)
- 125,000 (2002)
135,000 (2003)
140,000 (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)
40,000 (2000) $ 1,700,000 $ 35,000 $ 1,665,000 $ 40,000
45,000 (2001)
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)
111 CONTINUED
CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE —
December 31, 1999
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 6.80 - 8.00% (2/1; 8/1)
1993C Redevelopment Refunding 10-15-93 02-01-09 4.50 -4.60% (2/1; 8/1) _
1993A Redevelopment Refunding 10-15-93 06-01-03 3.6 - 4.20% (6/1; 12/1)
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CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE —
December 31, 1999
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)
1993C Park and Recreational Facilities Refunding 10-15-93 02-01-11 4.50 - 4.60% (2/1; 8/1)
TOTAL GENERAL OBLIGATION BONDS
SPECIAL ASSESSMENT BONDS:
General Obligation Improvement Bonds
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 6.75 - 6.85% (2/1; 8/1)
1992 Improvement Revolving Bonds 08-01-92 02-01-08 4.75 - 5.60% (2/1; 8/1)
TOTAL SPECIAL ASSESSMENT BONDS
114
Schedule 1
Authorized Principal
Annual and Due in
Serial Payments Issued Retired Outstanding 2000
180,847 (2001) $ 2,888,543 $ 2,135,000 $ 753,543 $
161,502 (2002)
148,138 (2003)
135,620 (2004)
96,152 (2005)
31,284 (2006)
165,000 (2000) $ 2,065,000 $ 285,000 $ 1,780,000 $ 165,000
160,000 (2001)
155,000 (2002-2003)
_ 150,000 (2004-2006)
145,000 (2007-2008)
140,000 (2009)
135,000 (2010)
130,000 (2011)
$ 19,128,543 $ 3,370,000 $ 15,758,543 $ 540,000
70,000 (2001-2002) $ 850,000 $ $ 850,000 $
75,000 (2003)
80,000 (2004-2005)
85,000 (2006)
90,000 (2007)
95,000 (2008)
100,000 (2009)
105,000 (2010)
45,000 (2000-2001) $ 485,000 $ 395,000 $ 90,000 $ 45,000
135,000 (2000-2008) $ 2,000,000 $ 785,000 $ 1,215,000 $ 135,000
$ 3,335,000 $ 1,180,000 $ 2,155,000 $ 180,000
115 CONTINUED
CITY OF HOPKINS, MINNESOTA
SCHEDULE OF BONDS PAYABLE —
December 31, 1999
Final
Issue Maturity
Date Date Interest Rates& Dates _
PROPRIETARY FUNDS BONDS:
General Obligation Revenue Bonds:
1999C Storm Sewer Revenue Bonds 8-1-99 02-01-15 4.0- 5.0% (2/1; 8/1)
1993 Storm Sewer Utility Refunding Bonds 10-15-93 02-01-10 4.50- 4.60% (2/1; 8/1) _
TOTAL REVENUE BONDS
TOTAL CITY BONDS
116
Schedule 1
Authorized Principal
Annual and Due in
Serial Payments Issued Retired Outstanding 2000
55,000 (2000) $ 1,545,000 $ $ 1,545,000 $ 55,000
70,000 (2001)
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)
150,000 (2000) $ 2,445,000 $ 370,000 $ 2,075,000 $ 150,000
160,000 (2001-2002)
165,000 (2003)
180,000 (2004)
185,000 (2005)
190,000 (2006)
205,000 (2007)
215,000 (2008)
225,000 (2009)
240,000 (2010)
$ 3,990,000 $ 370,000 $ 3,620,000 $ 205,000
$ 26,453,543 $ 4,920,000 $ 21,533,543 $ 925,000
117
CITY OF HOPKINS, MINNESOTA Schedule 2
SCHEDULE OF DEBT SERVICE REQUIREMENTS -ALL FUNDS
December 31, 1999
Total General Obligation Bonds Revenue Bonds
Principal Interest Princi al Interest Principal Interest
2000 925,000 1,154,851 720,000 992,296 205,000 162,555
2001 1,225,847 1,263,908 995,847 1,110,908 230,000 153,000 _
2002 1,286,502 1,221,806 1,051,502 1,079,103 235,000 142,703
2003 1,368,138 1,177,835 1,123,138 1,045,785 245,000 132,050
2004 1,270,620 1,130,884 1,010,620 1,010,089 260,000 120,795
2005 1,416,152 1,027,128 1,146,152 918,236 270,000 108,892
2006 1,586,284 842,805 1,306,284 746,390 280,000 96,415
2007 1,810,000 692,341 1,510,000 609,221 300,000 83,120
2008 1,880,000 596,823 1,565,000 527,898 315,000 68,925
2009 1,835,000 500,158 1,510,000 446,053 325,000 54,105 ._
2010 1,095,000 421,946 750,000 383,406 345,000 38,540
2011 1,010,000 360,039 900,000 332,289 110,000 27,750
2012 675,000 307,987 560,000 285,862 115,000 22,125
2013 650,000 266,329 530,000 250,079 120,000 16,250
2014 425,000 232,108 295,000 222,108 130,000 10,000
2015 740,000 194,410 605,000 191,035 135,000 3,375
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
$ 21,533,543 $ 11,901,315 $ 17,913,543 $ 10,660,715 $ 3,620,000 $ 1,240,600
118
Schedule 3
CITY OF HOPKINS, MINNESOTA
SCHEDULE OF FUNDING AVAILABLE
AND FUNDS REQUIRED FOR DEBT SERVICE
December 31, 1999
Total
CASH AND INVESTMENTS $ 1,589,959
DEFERRED TAX LEVIES:
Levy/Payable Years:
1999/00 937,000
2000/01 1,597,000
2001/02 1,776,000
2002/03 1,643,000
2003/04 1,788,000
2004/05 1,796,700
2005/06 628,000
2006/07 613,000
2007/08 588,000
2008/09 543,000
2009/10 440,000
2010/11 310,000
2011/12 115,000
2012/13 120,000
2013/14 115,000
2014/15 110,000 13,119,700
Special Assessment Receivable 14,569,054
Operating Revenues 7,605,020
FUND AVAILABLE 36,883,733
BONDS/FUTURE INTEREST PAYABLE
Bonds 21,533,543
Future interest 11,901,315
FUNDS REQUIRED 33,434,858
EXCESS FUNDING $ 3,448,875
119
Schedule 4
CITY OF HOPKINS, MINNESOTA
SCHEDULE OF INSURANCE IN FORCE
Effective January 1, 1999 through December 31, 1999 —
Kind Tyne of Coverage
All Perils Coverage All buildings, personal property, and $17,583,192 —
(Blanket Limit) property in the open as filed with the
($5,000 deductible) League of Minnesota Cities
Insurance Trust —
Comprehensive Municipal Bodily Injury 750,000 —
Liability Insurance Coverage Property Damage 750,000
Including Public Officials Personal Injury 750,000
($5,000 deductible) —
Business Auto Liability Liability 750,000 —
Personal Injury Protection Basic
Uninsured&Underinsured Motorist 750,000
(Comprehensive and Collision- —
$5,000 Deductible)
Business Equipment Coverage All Risk, Subject to Company Forms —
($5,000 Deductible)
Workers' Compensation Employees Statutory —
Employer 100,000
Volunteer Firefighters AD& D Catastrophic Loss 12,670 —
Blanket Accident Coverage Weekly income 65
Boilers& Machinery Liability Limit($5,000 Deductible) 5,000,000
Public Employee Blanket Bond Faithful Performance 100,000 —
($5,000 Deductible)
Open Meeting Law Defense Cost Per Lawsuit, Per Official 20,000 —
Reimbursement Agreement
120
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122
Table I
CITY OF HOPKINS, MINNESOTA
GOVERNMENTAL FUND TYPES - EXPENDITURES BY FUNCTION
Years 1990 Through 1999
(Amounts expressed in thousands)
(Unaudited)
Fiscal General Public Community Public Capital
Year Government aSafety Development Works Recreation Other Outlay Total
1990 $ 1,445 $ 2,111 $ 530 $ 1,450 $ 117 $ 139 $ 5,687 $ 11,479
1991 1,370 2,242 750 1,534 144 388 6,452 12,880
1992 1,439 2,221 629 1,454 99 26 3,172 9,040
1993 1,517 2,325 741 1,536 132 43 2,599 8,893
1994 1,609 2,481 956 1,574 112 92 4,717 11,541
1995 1,794 2,572 1,707 1,559 127 35 2,335 10,129
1996 1,240 2,727 634 1,587 146 29 4,265 10,628
1997 1,255 2,807 1,535 1,518 317 24 11,922 19,378
1998 945 3,311 1,201 1,732 576 73 4,085 11,923
1999 938 3,401 1,176 1,732 716 24 6,931 14,918
Note:
Includes General, Special Revenue and Capital Projects Funds.
Interest, issuance costs and fiscal charges are not included.
123
Table II
CITY OF HOPKINS, MINNESOTA
GOVERNMENTAL FUND TYPES - REVENUES BY SOURCE
Years 1990 Through 1999 -
(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
1990 $ 4,473 $ 2,466 $ 5,009 $ 912 $ 193 $ 150 $ 13,203
1991 4,873 3,326 1,105 721 185 137 10,347
1992 5,058 2,682 865 705 226 154 9,690
1993 5,353 2,395 937 985 226 129 10,025 -
1994 5,274 2,919 612 992 264 114 10,175
1995 6,078 2,528 800 736 320 102 10,564
1996 5,776 3,018 797 922 352 83 10,948 -
1997 5,745 4,155 729 (1) 5,540 (2) 372 98 16,639
1998 6,695 2,424 588 (1) 5,090 (2) 337 134 15,268
1999 7,453 4,206 522 (1) 1,541 470 151 14,343 -
Note:
Includes General, Special Revenue and Capital Projects Funds.
(1) Includes only interest earnings -
(2) Includes Oaks of Mainstreet real estate sales.
124
Table III
CITY OF HOPKINS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Years 1990 Through 1999
(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
1990 3,082,194 2,945,642 95.6 6,047 2,951,689 95.8%
1991 3,807,298 3,565,263 93.6 (25,880) 3,539,383 93.0%
1992 3,827,223 3,632,638 94.9 3,106 3,635,744 95.0%
1993 3,925,100 3,840,652 97.8 (10,395) 3,830,257 97.6%
1994 3,987,216 3,882,651 97.4 (36,765) 3,845,886 96.5%
1995 3,975,854 3,903,806 98.2 (43,761) 3,860,045 97.1%
-- 1996 4,178,410 4,085,963 97.7 21,978 4,107,941 98.3%
1997 4,217,627 4,166,717 98.8 29,181 4,195,898 99.5%
1998 4,232,961 4,203,506 99.3 34,612 4,238,118 100.1%
-- 1999 4,421,906 4,336,971 98.1 20,552 4,357,523 98.5%
(1)Tax levy is net of Homestead and Agricultural Credit Aid.
125
Table IV
CITY OF HOPKINS, MINNESOTA
TAX CAPACITY VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY
Levy Years 1990 Through 1999 -
(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
1990 $ 16,788 $ 615,377 $ 251 $ 5,069 $ 17,039 $ 620,446 2.7
1991 17,345 609,292 241 5,066 17,585 614,358 2.9 -
1992 16,088 594,796 243 5,066 16,331 599,862 2.7
1993 16,034 593,160 243 5,066 16,277 598,226 2.7 -
1994 15,314 591,809 269 5,627 15,583 597,436 2.6 -
1995 15,350 602,136 278 6,044 15,628 608,180 2.6
1996 15,772 621,378 285 6,188 16,057 627,566 2.6 -
1997 14,734 662,246 250 6,254 14,984 668,500 2.2
1998 14,524 725,856 271 7,754 14,795 733,610 2.0
1999 15,507 787,397 264 7,784 15,771 795,182 2.0
Tax capacity is stated after the effect of fiscal disparities.
126
Table V
CITY OF HOPKINS, MINNESOTA
PROPERTY TAX RATES-
DIRECT AND OVERLAPPING GOVERNMENTS
Years 1990 Through 1999
(Unaudited)
Payable
Fiscal Metro
Year C4 School Comly Council Other 1 Total
1990 18.98 42.04 27.92 5.63 1.41 95.98
1991 22.72 53.66 30.11 7.37 1.08 114.94
1992 23.64 61.30 34.33 6.00 0.64 125.91
1993 26.36 65.18 35.84 6.04 1.59 135.01
1994 27.50 67.34 37.44 6.23 1.28 146.02
1995 27.19 75.08 37.45 6.36 2.33 148.41
1996 27.65 61.88 35.52 4.93 3.05 133.03
1997 30.46 61.06 38.39 5.65 2.50 138.06
1998 32.44 58.94 40.99 6.04 3.35 141.76
1999 32.19 56.56 39.66 6.04 3.04 137.49
(1)The City is divided basically into Watershed Districts No. 1 and No. 3. The
difference in the tax capacity rates ranges from zero to less than 0.8%. In this
table,district No. 3 was used, as it is the higher rate. Also included in the 'other"
column is the Vo-Tech School rate which is dropped after 1995. Beginning in
1996 the County Park tax rate is added.
127
CITY OF HOPKINS, MINNESOTA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Years 1990 Through 1999 —
(Unaudited)
Current Special Percentage of
Assessment Current Special Current Collected —
Fiscal Becoming Due Assessments During Fiscal
Period During Fiscal Period Collected Period
1990 264,004 252,879 95.8
1991 274,155 242,454 88.4 —
1992 363,734 332,389 91.4
1993 412,221 345,557 83.8
1994 491,094 462,454 94.2 —
1995 555,611 506,417 91.2
1996 566,624 502,634 88.7
1997 523,252 424,691 81.2 —
1998 486,705 465,226 95.6
1999 569,282 530,137 93.1
128
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
4,327 22,644 77,676 1,626,361
537 53,809 211,599 2,042,067
7,927 77,227 118,871 2,308,524
48,647 78,188 244,961 2,802,907
6,924 78,909 86,859 3,081,957
15,839 111,438 406,675 2,535,709
83,738 36,057 115,715 2,231,205
12,829 137,002 127,083 2,253,656
6,742 36,136 45,676 6,931,540
9,733 73,870 146,916 14,550,745
129
CITY OF HOPKINS, MINNESOTA
RATIO OF NET BONDED DEBT
TO TAX CAPACITY VALUE AND NET BONDED DEBT PER CAPITA
Pay Years 1990 Through 1999
(Unaudited) —
Tax Capacity _
Value Gross Cash and
Population After Fiscal Bonded Investments
Year W Disparities Debt 2 on Hand/Escrowed —
1990 16,534 14,834,976 13,595,000 628,704
1991 16,534 15,098,819 13,651,000 1,074,837
1992 16,534 14,147,542 15,258,443 1,178,695 —
1993 16,534 13,100,726 15,622,343 (3) 1,302,870
1994 16,534 12,556,761 14,701,243 1,019,541
1995 16,534 12,910,496 14,605,143 932,467 —
1996 16,534 13,194,123 22,228,543 (4) 1,125,661
1997 16,665 11,936,742 23,418,543 (5) 1,617,274
1998 16,559 11,749,307 16,588,543 1,425,491 —
1999 16,887 12,495,527 21,533,543 1,625,660
(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.
130
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
2,790,000 10,176,296 68.60 615
3,131,000 9,445,163 62.56 575
3,014,900 11,064,848 78.21 669
3,143,800 11,175,673 85.31 676
2,992,700 10,689,002 85.10 646
3,656,600 (b) 10,016,076 77.58 655
3,290,000 (b) 10,222,882 (a) 71.30 618
4,865,000 (b) 11,171,269 (a) 93.59 670
4,705,000 (b) 10,458,052 89.01 632
10,075,000 (b) 9,832,883 78.70 582
(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.
131
Table VIII
CITY OF HOPKINS, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1999 —
(Unaudited)
MARKET VALUE $ 795,182,000
DEBT LIMIT 2% OF MARKET VALUE(Note A) $ 15,903,640
TOTAL BONDED DEBT $ 21,533,543
DEDUCTIONS (Note B):
Tax Increment Bonds $ 7,523,543
Revenue Bonds 3,620,000 —
Housing Improvement Bonds 6,455,000
Special Assessment Bonds 2,155,000
19,753,543 —
Amount Available in Debt Service Funds 1,625,660
Total Deductions 21,379,203
TOTAL DEBT APPLICABLE TO DEBT LIMIT 154,340
LEGAL DEBT MARGIN $ 15,749,300
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.
132
Table IX
CITY OF HOPKINS, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 1999
(Unaudited)
Net General Percentage
Obligation Applicable City Share
Debt 1 to Ci1y of Debt
Direct Debt
City of Hopkins $ 8,291,543 100.00% $ 8,291,543
Overlapping Debt
Hennepin County 163,904,456 1.28 2,097,977
Independent School District#270(Hopkins) 44,297,073 15.47 6,885,757
Independent School District 9283 (2) 12,033,074 0.38 45,726
Hennepin Suburban Park District 14,420,900 1.70 245,155
Metropolitan Council 110,297,310 0.64 705,903
Total Overlapping Debt 9,980,518
Total Direct and Overlapping Debt $ 18,272,061
Direct Overlapping Total
Debt Ratios Debt Det Debt
Ratio of Debt Per Capita(16,887 Population) $491 $591 $1,082
Ratio of Debt to Tax Capacity Valuation
(after fiscal disparities)of$12,495,527(3) 66.36% 79.87% 146.23%
Ratio of Debt to Estimated Market Valuation
of$795,182,000 1.04% 1.26% 2.30%
(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 12/31/99 submitted.
(3) Tax Capacity Values are based on payable 1999 figures.
Source: County Auditor
133
Table X
CITY OF HOPKINS,MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Years 1990 Through 1999
(Unaudited)
Percentage —
Total Total of Debt
Debt General to General
Year Principal Interest Service Expenditures(1) Expenditures —
1990 $ - $ 77,327 $ 77,327 $ 11,478,693 0.7%
1991 - 185,585 185,585 12,879,877 1.5
1992 195,000 210,317 405,317 9,040,470 4.4 --
1993 190,000 293,470 483,470 8,893,367 5.4
1994 345,000 229,346 574,346 11,541,044 4.9
1995 340,000 231,467 571,467 10,129,132 5.6 _
1996 315,000 213,706 528,706 8,817,705 6
1997 345,000 195,453 540,453 19,377,504 2.8
1998 345,000 176,616 521,616 11,922,576 4.4 —
1999 345,000 159,057 504,057 14,936,841 3.4
Note: All remaining bond issues are paid through tax increments, enterprise funds or special assessment
(1) Includes all governmental fund type expenditures except debt service.
134
Table XI
CITY OF HOPKINS, MINNESOTA
REVENUE BOND COVERAGE
WATER, SEWER AND STORM SEWER REVENUE BONDS
Years 1990 Through 1999
(Unaudited)
Net
Fiscal Gross Operating Revenue Debt Service Coverage
Year Revenue Expenses(1) Available Principal Interest Total Ratio
1990 2,039,769 2,186,191 (146,422) 45,000 127,354 172,354 -
1991 (2) 340,952 (136,260) 477,212 70,000 178,415 248,415 1.92 to 1
1992 433,475 122,200 311,275 75,000 174,191 249,191 1.79 to 1
1993 560,295 87,893 472,402 80,000 169,638 249,638 1.89 to 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 1
1996 513,513 103,677 409,836 120,000 118,238 238,238 1.72 to 1
1997 469,938 88,715 381,223 125,000 155,973 280,973 1.36 to 1
1998 554,622 110,294 444,328 135,000 104,870 239,870 1.91 to 1
1999 643,303 84,280 559,023 140,000 98,750 238,750 2.34 to 1
(1) Excludes depreciation and debt expense.
(2) Beginning in 1991 only Storm Sewer issue outstanding.
135
Table XII
CITY OF HOPKINS, MINNESOTA
DEMOGRAPHIC STATISTICS
Year 1990 Through 1999 ,..,
(Unaudited)
(2) (3)
Fiscal (1) School Unemployment
v
Year Population Enrollment Rate*
1990 16,534 7,060 4.6
1991 16,534 7,373 5.8
1992 16,534 7,537 5.7
1993 16,534 7,980 3.0
1994 16,534 7,804 3.0
1995 16,534 7,942 2.9
1996 16,534 8,027 2.5
1997 16,665 8,036 2.4
1998 16,559 8,313 1.9
1999 16,887 8,367 2.8
Sources:
(1)Metropolitan Council
(2) School districts within Hopkins
(3)Minnesota Department of Labor and Industry —
*Hennepin County
136
Table XIII
CITY OF HOPKINS, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
Years 1990 Through 1999
(Amounts expressed in thousands)
(Unaudited)
(1) (1)
Commercial Residential (2)
Construction Construction Property Value
Fiscal Number of
Year Value Units Value Commercial Residential Nontaxable
1990 6,723 189 2,742 185,447 423,164 52,187
1991 3,246 208 2,275 184,878 417,311 52,187
1992 4,753 285 2,502 170,090 423,461 78,897
1993 5,401 238 3,578 159,533 420,190 78,897
1994 7,967 380 3,320 162,499 429,955 78,897
1995 3,567 289 11,082 159,540 442,910 78,897
1996 12,499 344 5,893 163,722 459,066 78,897
-- 1997 7,672 121 13,162 175,193 489,029 78,897
1998 7,478 371 4,214 187,238 542,793 85,491
1999 32,791 493 10,037 204,988 582,540 85,491
Sources:
(1)City Community Development Department
(2) City Assessor's Office
137
Table XIV
CITY OF HOPKINS, MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 1999 —
(Unaudited)
Amount of
Percentage Estimated —
Tax of Total Tax Tax City
Taxpayer Type of Business Ca12aci1y Capaci1y Receives
1. Super Valu Grocery Warehouses 1,121,665 7.23% $ 276,266
2. Duke Realty Office/Warehouses 505,064 3.26% 124,397
3. St. Therese Apartments 328,464 2.12% 105,666 —
4. Ramsgate Apartments Apartments 259,002 1.67% 83,320
5. Alliant Techsystems Office/Warehouse 226,348 1.46% 55,749
6. Westside Village Apartments 218,564 1.41% 70,312 —
7. Greenfield(Phase I) Apartments 206,261 1.33% 66,354
8. Edco Products, Inc. Office/Warehouse 194,727 1.26% 47,961
9. Greenfield(Phase 11) Apartments 183,595 1.18% 59,062
10. Gateway Foods Office/Warehouse 182,100 1.17% 44,851
11. Auburn North Townhouses 174,648 1.13% 56,184
12. Christian Salvesen Warehouse 171,594 1.11% 42,263 _
13. Thermotech Office/Warehouse 159,986 1.03% 39,404
14. Buffalo Associates Bank/Office 142,857 0.92% 35,185
15. Rosewood West Apartments 140,928 0.91% 45,336 _
16. Oak Ridge Country Club Golf Course 126,714 0.82% 31,209
17. Creekwood Estates Apartments 122,867 0.79% 39,526
18. Knollwood Towers West Apartments 111,960 0.72% 36,017 _
19. Reuter, Inc. Office/Warehouse 87,988 0.57% 21,671
20. Robert J. Lawrence Retail 77,044 0.50% 18,975
(Knox Lumber) _
Total 4,742,376 30.59% 1,299,708
Total City 1999/2000 tax capacity= 15,507,256 100.00%
Notes:
1)Tax capacity is a percentage of total market value. For taxes payable in 2000 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 23.4% of the total estimated tax for 2000, not including
fiscal disparities and tax increment adjustments.
3)The estimated tax is based on the tax rates for payable 2000.
138
Table XV
CITY OF HOPKINS, MINNESOTA
MISCELLANEOUS STATISTICAL FACTS
December 31, 1999
(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:
1990 312
1991 329
1992 378
1993 304
1994 457
1995 390
1996 441
1997 886
1998 463
1999 587
Estimated Cost:
1990 $9,465,334
1991 5,520,526
1992 7,254,950
1993 8,979,218
_ 1994 11,286,814
1995 14,648,615
1996 18,391,797
1997 20,834,150
1998 11,692,315
1999 42,828,312
139
Table XV
CITY OF HOPKINS,MINNESOTA
MISCELLANEOUS STATISTICAL FACTS - CONTINUED
December 31, 1999 —
(Unaudited)
Fire Protection:
Number of Stations I _
Number of Employees- Volunteer 35
Police Protection:
Number of Stations I —
Number of Employees 37
Parks: —
City Parks 12
Playgrounds I
Skating Rinks 18 —
Employees:
Regular 108 _
Part Time 5
Elections:
Registered Voters- last general election 8,789
Number of votes cast last general election 6,500
Percentage of registered voters voting 73%
Population:
1920 3,055
1930 3,834 —
1940 4,100
1950 7,595
1960 11,380 _
1970(census) 13,395
1980 (census) 15,336
1990(census) 16,534
1991 16,534 —
1992 16,534
1993 16,534
1994 16,534 --
1995 16,534
1996 16,534
1997 16,665 —
1998 16,559
1999 16,887
140