2017 City of Hopkins, MN Annual ReportCity of Hopkins, Minnesota
Comprehensive Annual Financial Report
for year ended December 31, 2017
17
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2017
Prepared by the Department of Finance
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2017
TABLE OF CONTENTS
I INTRODUCTORY SECTION
Page
Letter of Transmittal from the City Manager and Finance Director 3
Certificate of Achievement for Excellence in Financial Reporting 9
Administrative Organization Chart 10
City Officials 11
II FINANCIAL SECTION
Independent Auditors' Report 14
Management's Discussion and Analysis 17
A. Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 31
Statement of Activities 32
Fund Financial Statements:
Balance Sheet - Governmental Funds 33
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 35
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 38
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund 39
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Economic Development Special Revenue Fund 40
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Arts Center Special Revenue Fund 41
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Tax Increment District Super Valu
Special Revenue Fund 42
Statement of Net Position - Proprietary Funds 43
Statement of Revenues, Expenses and Changes in
Net Position - Proprietary Funds 45
Statement of Cash Flows - Proprietary Funds 46
Notes to Financial Statements 49
i
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2017
Page
B. Required Supplementary Information
Schedule of Funding Progress - Other Postemployment Benefit Plan 84
Schedule of Proportionate Share of Net Pension Liability - Public Employees
General Employees Retirement Fund 84
Schedule of the City's Contribution 85
Schedule of the City's Contribution to the Hopkins Fire Relief Fund 86
Schedule of the Proportionate Share of Net Pension Liability - Hopkins Fire Relief 86
C. Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 89
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds 99
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 109
Parking 110
Communications 111
Hopkins Race & Equity Initiative 112
Depot Coffee House 113
Tax Increment District Entertainment Center 114
Tax Increment District Sonoma Project 115
Tax Increment District Oaks of Mainstreet 116
5th Avenue Flats 117
Tax Increment District Marketplace & Main 118
Combining Statement of Net Position - Nonmajor Enterprise Funds 120
Combining Statement of Revenues, Expenses and Changes in
Net Position - Nonmajor Enterprise Funds 121
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 122
Combining Statement of Net Position - Internal Service Funds 124
Combining Statement of Revenues, Expenses and Changes in
Net Position - Internal Service Funds 125
Combining Statement of Cash Flows - Internal Service Funds 125
ii
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2017
III STATISTICAL SECTION
Page
A. Financial Trends
Net Position by Component 130
Changes in Net Position 132
Fund Balances, Governmental Funds 134
Changes in Fund Balances, Governmental Funds 136
B. Revenue Capacity
Assessed and Actual Value of Taxable Property 138
Direct and Overlapping Property Tax Rates 139
Principal Property Taxpayers 140
Property Tax Levies and Collections 141
C. Debt Capacity
Ratios of Outstanding Debt by Type 142
Ratios of Net General Bonded Debt Outstanding 143
Direct and Overlapping Governmental Activities Debt 144
Legal Debt Margin Information 145
Pledged-Revenue Coverage 146
D. Demographic and Economic Information
Demographic and Economic Statistics 147
Principal Employers 148
E. Operating Information
Full-time Equivalent City Employees by Type 149
Operating Indicators by Function/Program 150
Capital Asset Statistics by Function/Program 152
iii
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2017
SECTION I
INTRODUCTORY SECTION
1
2
July 17, 2018
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, 2017 is hereby submitted. This report was prepared
in accordance with U.S. generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) and meets the requirements of the
Minnesota State Auditor’s Office.
This report consists of management’s representations concerning the finances of the City of
Hopkins. Consequently, management assumes full responsibility for both the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for
making these representations, management of the City of Hopkins has established a
comprehensive internal control framework that is designed both to protect the government’s
assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Hopkins financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City of Hopkins comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material respects.
The City of Hopkins financial statements have been audited by CliftonLarsonAllen LLP, a firm
of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of Hopkins for the fiscal year
ended December 31, 2017, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent
auditor concluded based upon the audit, that there was a reasonable basis for rendering
unmodified opinions that the City of Hopkins financial statements for the fiscal year ended
December 31, 2017, are fairly presented in conformity with GAAP. The independent auditors’
report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found in the financial section of this report
immediately following the report of the independent auditors.
3
Profile of the Government
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in
1893. The name was changed in 1928 to Hopkins after one of the early residents. The original
territory of incorporation was three square miles, but successive annexation since 1946 has
enlarged this area by one-third. In 1947, the residents of the area adopted a City Charter with a
Council/Manager form of government. The governing council is responsible, among other
things, for passing ordinances, adopting the budget, appointing committees and hiring the
government’s manager and the government’s attorney. The government’s manager is responsible
for carrying out the policies and ordinances of the government, for overseeing day-to-day
operations of the government and for appointing the heads of the government’s departments.
The report includes all funds 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, highways and streets, urban redevelopment and housing, culture and recreation,
and health and welfare. In addition to general municipal activities, the City provides water,
sewer, storm sewer and refuse services and operates an ice arena. Low-income rental housing is
a function of the HRA. The Hopkins Fire Relief Association has not met the established criteria
for inclusion in the reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and
control. All departments of the City of Hopkins are required to submit requests for appropriation
to the Finance Director by June of each year. The Finance Director uses these requests as the
starting point for developing a proposed budget. The Finance Director then presents this
proposed budget to the Council for review prior to September 30th. The Council is required to
hold public hearings on the proposed budget and to adopt a final budget no later than December
31, the close of the City of Hopkins fiscal year.
The appropriated budget is prepared by fund and department. Department heads may make
transfers of appropriations within a department. Transfers of appropriations between funds
require approval of the City Council. Budget to actual comparisons are provided in this report
for each individual governmental fund for which an annual budget has been adopted. For the
General Fund and the major Special Revenue Funds this comparison is presented on pages 37-39
as part of the basic financial statements for the governmental funds. For governmental funds,
other than the General fund and major Special Revenue Funds, with annual budgets, this
comparison is presented in the combining and individual fund statements and schedules
subsection of this report on pages 90-100.
Factors Affecting Financial Condition
The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly
fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan
complex, is readily accessible by the many highways and railways leading into the area. This
easy access prompted steady growth for the City of Hopkins during its formative years. In
response to this growth the City developed goals of working towards a planned community, with
its policies directed toward sound ratios of residential, commercial and industrial components,
with the current tax base approximately 73% single family residential and apartments, and 27%
commercial-industrial. The city’s population has stabilized due to the fact that the City is largely
4
developed and the national trend toward the lowering of persons per household. In the next
several years the City will see the redevelopment of a 17-acre site, which will include residential
and commercial components.
The City Council and staff along with an organized group of concerned partners determined what
the Vision and the Mission of the City of Hopkins should be. Participation in this project was
very high and the resulting Vision and Mission are as follows:
Community Vision
Creating a spirit of community where:
All people feel save and respected, and diversity is celebrated.
Business growth is supported and a vibrant downtown is maintained.
People enjoy exceptional government services, neighborhoods and outstanding schools.
City of Hopkins Mission
Inspire, Educate, Involve, Communicate
Economic Condition and Outlook
Hopkins continues to show strong economic and redevelopment activities within the city. The
valuation of new non-residential construction in 2017 was $18.5 million dollars. This
development activity has been the result of a good development market in the Hopkins area along
with successful planning on the part of the city council and city staff.
Significant projects completed or begun in 2017 include the following:
Activity Valuation
Commercial Additions/Alterations:
Oxford VillageApartments $ 10,000,000
Metropolitan Council Lift Station $ 5,500,000
Hopkins Village Apartments remodel $ 3,500,000
Blake School Additions $ 13,000,000
Efforts are being made for continued development and growth for 2018 and beyond. It is
anticipated that over $150,000,000 of construction will also take place in the City of Hopkins
during the next several years.
Some anticipated projects for 2018-2020 include the following:
Project Valuation
Hopkins Cold Storage Site Redevelopment $62,000,000
Southwest Light Rail Stations $10,000,000
Long-term financial planning
The City of Hopkins has a strategic plan for economic development and has completed extensive
planning work in anticipation of the Southwest Light Rail Transit (SWLRT) line and the three
Hopkins LRT stations. As a part of the plans, the City of Hopkins intends to pursue various
development and redevelopment efforts throughout the City. Several projects are anticipated.
5
In 2017, several commercial projects were completed among which was the Johnson Building
redevelopment. This development by Doran Companies known as "The Moline" is a 241-unit
market rate apartment building with state-of-the-art amenities. The project was completed in the
fall of 2017. Also completed was the Oxford Village Apartments, an affordable housing project
next to the newly enhanced Cottageville Park. These developments will have major impacts on
the community. Specialized planning is taking place to ensure that these developments occur so
as to benefit the community and residential neighborhoods.
Significant improvements for Blake Road Corridor (County Road 20) began with planning in
2017 and will be constructed in 2018 and 2019. This project is a joint effort between Hennepin
County and the Cities of St. Louis Park and Hopkins. A number of neighborhood and town
meetings were held to gather input on this project that will re-align the road and facilitate
re-development of the area. The City has seen an increased interest in re-development in the area
due to land costs, market conditions and fure light rail transit in the area.
Another project in the planning stages is the 14-mile Southwest Corridor Light Rail Transit
(SWLRT) line that will go from Eden Prairie to downtown Minneapolis passing through Hopkins
and providing development potential at three transit stations that are planned for Hopkins. In
downtown Minneapolis the Southwest LRT will connect with the Hiawatha and Central LRT
lines. Construction of the light rail line is expected to begin in 2019 and is expected to be funded
with the Hennepin County's transit sales tax in the metro area (30%), and with Hennepin County
Regional Railroad Authority (10%), Federal (50%), and State (10%) dollars.
Relevant Financial Policies
The City of Hopkins has adopted a comprehensive set of financial policies. While no new
policies were developed in 2017 staff continues to review current policies to ensure they
remain relevant.
In addition the City of Hopkins’ Fund Balance policy requires that the General Fund’s
Unassigned portion of fund balance be equivalent to a minimum of five months expenditures or
42% of the prior fiscal year General Fund operating expenses. At December 31, 2017 the
General Fund unassigned fund balance is at 42% or $5,471,420 which represents five months of
2017 general fund expenditures. Due to sound fiscal policy and close monitoring of budgets we
remain at the targeted General Fund balance goal.
Major Initiatives
For 2017, the staff, following specific directives of the council and the city 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.
In 2017, we accomplished our annual street repair and improvements, at a cost of approximately
$9.6 million. This includes the city's 8th Avenue Artery project and annual residential street
reconstruction program. Along with the street improvements, improvements to the Parking
6
Ramp and Public Works Building were completed for approximately $150,000. In addition
preliminary work was begun on the 2018 street improvement project and Blake Road Corridor.
We continue to improve the park system and invested $1.5 million into Burnes Park in 2017
adding a splash pad and other improvements. Additional park project improvements for 2017
totaled $155,000 for play equipment at various parks.
The water, sewer and storm sewer departments also completed in conjunction with the street
improvements, infrastructure reconstruction projects totaling approximately $4.2 million. In
additon rehabilitaion work was done at Lift Station No. 7 for approximately $1 million and a
SCADA project was started for the water department totaling $170,000 in 2017.
Future projects
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in
2003, which guides future improvements and connections to regional trails.
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 Hall Building was last updated in 1989. The City has completed a schematic design
and plans to remodel City Hall in 2018/2019. The project is estimated to cost between $4.0 and
$4.5 million. The main priorities of the remodel are to create a more comfortable and efficient
work environment for city staff, expand the service counter to improve customer service to
residence and improve the City Council chambers.
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,
2016. In order to be awarded a Certificate of Achievement for Excellence in Financial
Reporting, a governmental unit must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both U.S. generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
7
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 the Finance Department staff
for their work in preparing this report.
Respectfully submitted,
Michael J. Mornson Nick Bishop, CPA
City Manager Finance Director
8
Government Finance Officers Association
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, 2016
Executive Director/CEO
r-f .
9
Organizational Chart
CITIZENS
City Manager
CITY
COUNCIL
Community
Services Finance Fire
Police
Planning &
Economic
Development
Recreation
Public Works
City of
Minnetonka
City Clerk
Communications
Information
Services
Inspections
Reception
Activity Center
Assessing
Accounting
Payroll
Utility Billing
Economic
Development
Housing
Planning &
Zoning
Public Housing
Fire & Medical
Response
Prevention
Emergency
Preparedness
Patrol
Investigation
Communication
Crime
Prevention
Building Maint. &
Equipment Services
Engineering
Parks & Forestry
Street/Traffic/Refuse
Water & Sewer
Pavilion/Ice Arena
Boards &
Commissions City Attorney
Administrative
Services
Center for the
Arts
Depot Coffee
House
10
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OFFICIALS
December 31, 2017
CITY COUNCIL
Term
Expires
Molly Cummings Mayor 12-31-19
Katy Campbell Councilmember 12-31-21
Jason Gadd Councilmember 12-31-19
Kristi Halverson Councilmember 12-31-21
Aaron Kuznia Councilmember 12-31-19
CITY MANAGER
Michael J. Mornson Appointed
FINANCE DIRECTOR
Nick Bishop Appointed
11
12
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2017
SECTION II
FINANCIAL SECTION
13
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Hopkins,
Minnesota (the City), as of and for the year ended December 31, 2017, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity ’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
14
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City as of December 31, 2017, and the
respective changes in financial position and, where applicable, cash flows thereof and the respective
budgetary comparison for the General Fund and major special revenue funds for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 17 to the basic financial statements, net position of the governmental activities,
business-type activities and fund balance of the permanent improvement revolving fund as of
January 1, 2017 have been restated to properly reflect misclassification of bonds payable between
governmental and business-type activities and a prior year over-accrual of retainage payable. The City
reported a restatement for the correction of this error. Our auditors’ opinion was not modified with
respect to the restatement.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of funding progress – other postemployment benefits
plan, schedules of the City’s proportionate share of net pension liabilities and schedules of pension
contributions and the schedule of funding progress, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining and
individual nonmajor fund statements and schedules and statistical section are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund statements and schedules are
fairly stated, in all material respects, in relation to the basic f inancial statements as a whole.
15
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 17,
2018 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the result of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
July 17, 2018
16
CITY OF HOPKINS, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
This section of the City’s comprehensive annual financial report presents a discussion and analysis of
the City’s financial activities during the fiscal year ended December 31, 2017. This discussion and
analysis should be read in conjunction with the letter of transmittal in the introductory section of this
report.
Financial Highlights
The assets and deferred outflows of the City exceeded liabilities and deferred inflows at the
close of the 2017 fiscal year by approximately $58.5 million (net position). Of this amount,
approximately $(17.6) million (unrestricted net position) is unavailable to meet the City’s
ongoing obligations to citizens and creditors due in part to the recognition of the City's share of
the unfunded pension obligation.
The City’s total net position increased by approximately $2.1 million. A key factor in this
increase included prior period adjustments of approximately $1.5 million, described in note
seventeen. Positive operating results in the Water, Sewer and Storm Sewer funds also
contribute to the increase.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of approximately $24.2 million, an decrease of approximately $(0.5)
million in comparison with the prior year's restated fund balance. The decrease was primarily
due escrow payments on bond refundings and the receipt of bond proceeds and other payments
for future capital project costs. Approximately $5.8 million of fund balance is available for
spending at the City’s discretion (assigned or unassigned fund balance).
As of December 31, 2017, unassigned fund balance for the General Fund was approximately
$5.5 million, or 42% of total general fund expenditures. This compares to $ 5.4 million from
the prior year, an increase of approximately $32,000. The General Fund working capital goal
policy stated that the City will strive to maintain a fund balance in the General Fund for
working capital of 42% of the previous year's General Fund expenditures. At December 31st
working capital is at 42%.
The City of Hopkins total debt increased by approximately $11.5 million during the current
fiscal year due to the sale of street reconstruction and general obligation bonds for two bond
issues. Total new debt totaled $14.965 million and bond maturities totaled $3.465 million.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Hopkins basic
financial statements. The City of Hopkins basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
17
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a
private-sector business.
The statement of net position presents information on all of the City of Hopkins assets, deferred
outflows of resources, liabilities, and deferred inflows of resources with the difference between them
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City of Hopkins is improving or deteriorating.
The statement of activities presents information showing how the City net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Hopkins that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Hopkins include general,
public safety, highways, streets, culture, recreation, urban redevelopment, housing, health and welfare.
The business-type activities of the City of Hopkins include water, sewer, refuse, storm sewer utilities, an
ice arena, and a housing and redevelopment authority.
The government-wide financial statements include the City of Hopkins itself, but also a legally separate
Hopkins Housing and Redevelopment Authority. Although the Hopkins Housing and Redevelopment
Authority is legally separate, it functions for all practical purposes as a department of the City of
Hopkins, and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 31-32 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Hopkins, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City of Hopkins can be divided into two
categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows of spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
18
expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of Hopkins maintains forty-one individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund, Economic Development, Arts Center,
Tax Increment District Super Valu, and Permanent Improvement Revolving fund all of which are
considered to be major funds. Data from the other thirty-six funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special
revenue funds except for the Community Development Block Grant fund. A budgetary comparison
statement has been provided for the General fund and major special revenue funds and schedules are
provided for other funds to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 33-37 of this report.
Proprietary funds. The City of Hopkins maintains two types of proprietary funds. Enterprise funds
are used to report the same functions presented as business-type activities in the government-wide
financial statements. The City of Hopkins uses enterprise funds to account for its water, sewer, refuse,
storm sewer utilities, the pavilion ice arena, and the housing and redevelopment authority. Internal
service funds are an accounting device used to accumulate and allocate costs internally among the City
of Hopkins various functions. The City of Hopkins uses internal service funds to account for
replacement of equipment, insurance deductibles and compensated absences. Because all of these
services predominantly benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
water, sewer, storm sewer utility funds, all of which are considered to be major funds of the City of
Hopkins. Data from the other three enterprise funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major proprietary funds is provided in the form
of combining statements elsewhere in this report. The internal service funds are combined into a single,
aggregated presentation in the proprietary fund financial statements. Individual fund data for the
internal service funds is also provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 43-47 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found
on pages 49-82 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information. Required supplementary information can be found on page 84-86
of this report.
19
The combining statements referred to earlier in connection with non-major governmental funds,
non-major proprietary funds and internal service funds are presented immediately following the required
supplementary information. Combining and individual fund statements and schedules can be found on
pages 89-126 of this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Hopkins, assets and deferred outflows exceeded liabilities and
deferred inflows by $58,478,892 at the close of the most recent fiscal year.
Due to the recognition of pension liability almost all (96%) of the City of Hopkins net position is
reflected in its investment in capital assets (e.g., land, buildings, machinery and equipment); less any
related debt used to acquire those assets that are still outstanding. The City of Hopkins uses these
capital assets to provide services to citizens. The net capital assets are not available for future spending.
Although the City of Hopkins investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources.
City of Hopkins Net Position
December 31
Governmental Activities Business-Type Activities Total
2017 2016 2017 2016 2017 2016
Assets
Current and other assets $ 33,235,896 $ 32,309,895 $ 3,045,994 $ 2,492,028 $ 36,281,890 $ 34,801,923
Capital assets 73,787,401 62,806,224 30,491,036 26,220,444 104,278,437 89,026,668
Total assets 107,023,297 95,116,119 33,537,030 28,712,472 140,560,327 123,828,591
Deferred Outflows of Resources
Deferred charges on refunding 227,927 268,705 - - 227,927 268,705
Pensions 6,774,365 10,987,857 265,497 585,768 7,039,862 11,573,625
Total deferred outflows of
resources 7,002,292 11,256,562 265,497 585,768 7,267,789 11,842,330
Liabilities
Other liabilities 4,481,142 3,239,754 457,206 1,048,924 4,938,348 4,288,678
Long-term liabilities
outstanding 69,075,730 67,188,279 7,693,108 5,880,393 76,768,838 73,068,672
Total liabilities 73,556,872 70,428,033 8,150,314 6,929,317 81,707,186 77,357,350
Deferred Inflows of Resources
Pensions 7,424,016 1,846,644 217,834 135,305 7,641,850 1,981,949
Net Position
Net investment in capital assets 32,064,111 33,833,387 23,990,746 21,798,183 56,054,857 55,631,570
Restricted 18,544,263 18,573,173 - - 18,544,263 18,573,173
Unrestricted (17,563,673) (18,308,556) 1,443,445 435,435 (16,120,228) (17,873,121)
Total net position $ 33,044,701 $ 34,098,004 $ 25,434,191 $ 22,233,618 $ 58,478,892 $ 56,331,622
A portion of the City of Hopkins net position represent resources that are subject to external restrictions
on how they may be used.
The City’s net position increased by $2,147,270 during the current fiscal year.
20
The net pension liability and the pension-related deferred outflows and inflows of resources (which are
reported in accordance with GASB Statement No. 68), do not change the City's future funding
requirements or obligations under the plans, which are determined by state statutes. Additionally, the
City has recorded the net pension asset of the Hopkins Fire Department Relief Association in the
government-wide statements.
Net position was impacted by $9,052,442 at December 31, 2017 due to the implementation of this
standard. Pension-related amounts included in the above schedule related to the standard are as follows:
Net pension asset $ 475,518
Deferred outflows of resources 7,039,862
Net pension liability ( 8,925,784 )
Deferred inflows of resources ( 7,642,038 )
Total $ 9,052,442
(remainder of this page left blank intentionally)
21
Governmental and business-type activities. Governmental activities decreased the City of Hopkins
net position by $1,062,403 and business-type activities increased net position by $3,200,573. Key
elements of the increases are as follows:
City of Hopkins Changes in Net Position
For the Year Ended December 31
Governmental Activities Business-Type Activities Total
2017 2016 2017 2016 2017 2016
Revenues:
Program revenues:
Charges for services $ 1,467,705 $ 1,492,055 $ 6,632,139 $ 5,815,341 $ 8,099,844 $ 7,307,396
Operating grants and
contributions 8,007,553 4,087,923 697,635 721,677 8,705,188 4,809,600
Capital grants and
contributions 1,731,738 1,109,278 - 702,555 1,731,738 1,811,833
General revenues:
Property taxes 12,895,910 11,994,436 -63,519 12,895,910 12,057,955
Tax increments 2,146,730 2,959,459 - - 2,146,730 2,959,459
Grants and contributions
not restricted 20,510 20,510 - - 20,510 20,510
Investment earnings 168,437 124,406 20,760 13,231 189,197 137,637
Gain on sale of capital
assets 69,883 62,013 (54)9,776 69,829 71,789
Total revenues 26,508,466 21,850,080 7,350,480 7,326,099 33,858,946 29,176,179
Expenses:
General government 6,751,459 10,341,183 - - 6,751,459 10,341,183
Public safety 8,126,086 8,561,759 - - 8,126,086 8,561,759
Health and welfare 179,916 185,301 - - 179,916 185,301
Highways and streets 5,932,978 5,168,939 - - 5,932,978 5,168,939
Urban redevelopment and
housing 1,354,036 1,398,736 - - 1,354,036 1,398,736
Culture and recreation 2,737,116 2,231,605 - - 2,737,116 2,231,605
Interest on long-term debt 1,335,290 952,756 - - 1,335,290 952,756
Water - - 1,871,868 1,878,807 1,871,868 1,878,807
Sewer - - 2,406,027 2,251,291 2,406,027 2,251,291
Storm sewer - - 460,771 397,660 460,771 397,660
Refuse - - 874,750 867,823 874,750 867,823
Pavilion/ice arena - - 547,831 483,035 547,831 483,035
Housing and
redevelopment authority - - 591,895 616,653 591,895 616,653
Total expenses 26,416,881 28,840,279 6,753,142 6,495,269 33,170,023 35,335,548
Increase in net position before
transfers
91,585 (6,990,199) 597,338 830,830 688,923 (6,159,369)
Transfers (3,533,235) (2,089,914) 3,533,235 2,089,914 - -
Increase (decrease) in net
position
(3,441,650) (9,080,113) 4,130,573 2,920,744 688,923 (6,159,369)
Net position - January 1, as
previously stated 34,098,004 43,178,117 22,233,618 19,312,874 56,331,622 62,490,991
Prior period adjustment 2,388,347 -(930,000)-1,458,347 -
Net position - January, as
restated 36,486,351 43,178,117 21,303,618 19,312,874 57,789,969 62,490,991
Net position - December 31 33,044,701 34,098,004 25,434,191 22,233,618 58,478,892 56,331,622
22
Governmental activities: Property taxes increased in 2017 due to tax growth and increased levy
amounts. The City also received a number of program grants for specific programs in addition to
county and park district grants for ongoing projects. Net position decreased primarily due to a major
escrow payment for bond refundings that was offset by bond proceeds and other payments for capital
projects that will be completed in 2018 and 2019.
23
Business-type activities. Business-type activities had a increase in net position due to transfers and
increased revenues. A utility rate study was completed in 2016 with a large increase implemented in
2017 that is designed to cover operations, debt and capital needs over the next 5 years. Smaller
incremental increases are planned over the next four year to continue to improve the financial health of
the utility funds.
24
Financial Analysis of the City’s Funds
As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City of Hopkins governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Hopkins financing requirements. In particular, unassigned fund balance may serve
as a useful measure of a City’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined
ending fund balances of $24,242,762, decrease of $(533,403) in comparison with the prior year's
restated balance. The decrease to of fund balance in the current year was a $3.7 million dollar escrow
payment for bond refunding. This was offset by increases due to issuing debt or receiving payments for
capital projects that will be completed in 2018 and 2019.
Approximately 24% of fund balance or $5,835,552, constitutes assigned and unassigned fund balance,
which is available for spending at the City’s discretion. The remainder of fund balance is
non-spendable, restricted or committed to indicate that it is not available for new spending because it is
either in a non-spendable form (inventory, prepaid expenses, rehabilitative loans, or property held for
resale); restricted (debt service, tax increment projects) or has already been committed (for economic
development, property purchases, parking, and communication activities).
The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal
year, unassigned fund balance of the general fund was $5,471,420. This represents 93.5% of the general
fund’s total fund balance. As a measure of the general fund’s liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents approximately 41.7% of total general fund expenditures while total fund balance
represents approximately 44.6% of that same amount.
The fund balance of the City of Hopkins general fund decreased by $(13,607) during the current fiscal
year. Revenues exceeded expenditures by $1,393 before transfers. This derease can be attributed to
more tax abatements and tax petition filings than expected during the year.
The Economic Development fund has a total fund balance of $4,458,674 of which $4,458,674 is
committed for economic development. The fund balance increased by $102,514 primarily as a result of
the city receiving excess tax increment property tax payments.
The Arts Center fund has a deficit fund balance of $(1,180,412) all of which is unassigned. The fund
balance deficit increased by $(183,372) mainly due to deferred maintenance projects occurring at the
Arts Center building. While the Arts Center received a programming grant from the Minnesota State
Arts Board to offset programming costs those costs still exceeded budgeted revenues due to higher
performing artist fees and expenses . Staff and the Friends of the Hopkins Center for the Arts, a
non-profit associated with the Arts Center, continue working to identify significant donors and
corporate sponsors to underwrite arts programming and decrease the deficit.
The Tax Increment District Super Valu fund has a total fund balance of $5,579,817 of which all is
restricted for tax increment. The fund balance increased by $562,328 due to revenues exceeding
amounts owed to developers for project costs and related financing.
25
The Permanent Improvement Revolving fund has a total fund balance of $1,655,606 which is
committed. The fund balance increased by $836,332 as a result of bond proceeds and other receipts for
future project costs. Revenues in this fund are derived from special assessments and taxes. Bonds are
were sold in April of 2018 for the 2018 street projects.
Proprietary funds. The City of Hopkins proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Unrestricted net position of the Water fund at the end of the year amounted to $(1,227,425). The
increase in net position amounted to $1,590,519 and is due to project costs that are being funded by the
2017 bond issue and operating revenues slightly exceeding operating expenditures. The City completed
a utility rate study which evaluated the entire rate structure of the water fund. The City implemented a
tiered rate structure in 2017 that will meet state requirements for conservation pricing and meet the
City's needs for operations and capital expenditures.
Unrestricted net position of the Sewer fund at the end of the year amounted to $98,246. The
unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $1,357,822 and is due to operating revenues exceeding operating expenses along
with transfers in from the permanent improvement fund for reimbursement of project costs. Along with
the water fund a utility rate study is was done for the sewer fund. A rate structure was put in place in
February 2017 to ensure adequate funds are maintained for operations and capital needs in the
long-term.
Unrestricted net position of the Storm Sewer Utility fund at the end of the year amounted to $1,349,720.
The unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $1,253,895 and is due to transfers in from the permanent improvement fund for
reimbursement of project costs and operating revenues exceeding operating expenditures.
General Fund Budgetary Highlights
There is no difference between the general fund original budget and the final approved budget. The
City always adopts a balanced budget and does not plan to have a decrease or increase in total fund
balance. Amending the budget was not considered necessary during the year.
During the year revenues were over budgetary estimates by $290,664 due to increased license and
permit revenue, fines, federal grants, recreation fees and donations. This was offset by a decrease in tax
revenues as a result of rebates due taxpayers who challenged their valuations in tax court and less than
expected miscellaneous revenues.
Expenditures were over budget by $(304,271) and was due to inreased costs in the general government,
public safety and urban development and planning departments primarily due to increased personnel
costs.
The net effect of these budget impacts was an derease in fund balance of $(13,607) after transfers.
Capital Asset and Debt Administration
Capital assets. The City of Hopkins investment in capital assets for its governmental and business type
activities as of December 31, 2017, amounts to $104,278,437 (net of accumulated depreciation). This
26
investment in capital assets includes land, buildings, improvements, vehicles, machinery and
equipment, park facilities, roads, highways, bridges, distribution systems and construction in progress.
Major capital asset events during the current fiscal year included the following:
Construction in progress additions totaled $16,558,201 for infrastructure projects and the 8th
Avenue Artery project.
A total of $12,202,243 of assets was transferred from construction in progress to other
improvements as infrastructure projects were completed and put into service.
Vehicle and equipment purchases totaled $2,192,822. Major purchases include a fire truck,
sewer vactor truck and other public works equipment.
Vehicle and equipment deletions totaled $715,894. Deletions were a result of scheduled
replacements of public works, public safety and utility vehicles and equipment.
City of Hopkins Capital Assets
(net of depreciation)
December 31
Governmental Activities Business-Type Activities Total
2017 2016 2017 2016 2017 2016
Land $ 6,157,677 $ 6,157,677 $ 254,299 $ 254,299 $ 6,411,976 $ 6,411,976
Buildings 12,989,899 13,495,109 2,982,040 3,156,013 15,971,939 16,651,122
Infrastructure - - 7,218,828 7,620,775 7,218,828 7,620,775
Improvements 35,762,239 28,211,850 12,817,870 9,741,259 48,580,109 37,953,109
Vehicles 2,858,479 2,016,256 853,812 524,333 3,712,291 2,540,589
Equipment 2,565,913 2,408,898 275,596 312,862 2,841,509 2,721,760
Construction in progress 13,453,194 10,517,925 6,088,591 4,610,898 19,541,785 15,128,823
$ 73,787,401 $ 62,807,715 $ 30,491,036 $ 26,220,439 $ 104,278,437 $ 89,028,154
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 57-58 of
this report.
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $64,365,000. Of this amount $15,235,000 comprises tax increment redevelopment debt,
and $41,625,000 comprises general obligation and special assessment debt, all of which is backed by
the full faith and credit of the government. Another $1,160,000 is special fees debt for which the
government is liable in the event of default by the property owners subject to the fees. The remainder of
the City of Hopkins debt, $6,345,000, represents bonds intended to be paid from specified revenue
sources (i.e., revenue bonds).
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental Activities Business-Type Activities Total
2017 2016 2017 2016 2017 2016
G.O. Tax increment bonds $ 15,235,000 $ 15,950,000 $- $- $ 15,235,000 $ 15,950,000
G.O. Housing fee bonds 1,160,000 1,425,000 - - 1,160,000 1,425,000
G.O. Equipment certificates 425,000 505,000 - - 425,000 505,000
G.O. Capital improvement bonds 33,735,000 21,625,000 - - 33,735,000 21,625,000
G.O. Special assessment bonds 7,465,000 8,065,000 - - 7,465,000 8,065,000
Revenue bonds - - 6,345,000 5,295,000 6,345,000 5,295,000
$ 58,020,000 $ 47,570,000 $ 6,345,000 $ 5,295,000 $ 64,365,000 $ 52,865,000
27
The City of Hopkins total bonded debt increased by $11,5000,000 during the current fiscal year. The
increase is a result of the issuance of $11,795,000 in G.O. Street Reconstruction Bonds that financed
street reconstruction projects, the issuance of $3,170,000 on GO Bonds for park projects and various
utility system improvements. Total principal payments of $3,465,000 were made during 2017. General
Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by the
Water, Sewer, and Storm Sewer Utility Funds and the Pavilion 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 3.0 percent of taxable market
value. At December 31, 2017, the debt limit for the City is $54,887,875. Of the total debt, $26,270,000
of general obligation and revenue bonds is applicable to the limit. After taking into consideration funds
on hand available to liquidate debt, the legal debt margin is $30,486,428.
The City of Hopkins was upgraded to a “AA+” rating from Standard & Poor’s in January 2014 which
was most recently reaffirmed in June of 2017 and maintains an “A1” rating from Moody’s.
Additional information on the City of Hopkins long-term debt can be found in note 9 on pages 60-63 of
this report.
Economic Factors and Next Year’s Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2018 budget.
The City will begin a two year street reconstruction project of a major road and continue with its
residential street improvement program. A classification and compensation labor study was completed
in 2017 and the results was implemented on January 1st, 2018. Water and sewer rates were increased
incrementall based on a 2016 utility rate study. The City continues to use a Financial Management Plan
that can estimate the property tax increases or decreases on a median value home as a basis for decision
making. As a result of these factors the City prepared a budget for 2018 that included an general fund
increase of 4.67% and an overall increase of 9.86% in expenditures.
During the current fiscal year, unassigned fund balance in the general fund was $5,471,420 or 42% of
general fund expenditures. The Office of the State Auditor recommends unassigned fund balances no
less than five months of operating expenditures. The City is meeting the recommendation for the
general fund. The unassigned fund balance is used to pay for the City’s general fund obligations until it
receives its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Director of Finance, City of Hopkins, 1010 First Street South, Hopkins, MN 55343.
28
29
BASIC FINANCIAL STATEMENTS
30
City of Hopkins
Statement of Net Position
December 31, 2017
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and cash equivalents $ 24,943,661 $ 3,178,787 $ 28,122,448
Taxes receivable 99,632 114 99,746
Special assessments receivable 2,874,176 -2,874,176
Accounts receivable 2,874,063 484,984 3,359,047
Intergovernmental receivable 8,716 121,848 130,564
Interest receivable 47,071 3,612 50,683
Internal balances 789,632 (789,632)-
Inventories 91,850 30,458 122,308
Net pension asset 475,518 -475,518
Prepaid items 43,523 15,823 59,346
Land held for resale 1,018,817 -1,018,817
Capital assets, non depreciable 19,610,871 6,342,890 25,953,761
Capital assets, net of depreciation 54,176,530 24,148,146 78,324,676
Total Assets 107,054,060 33,537,030 140,591,090
Deferred Outflows of Resources
Deferred charge on refunding 227,927 -227,927
Pensions 6,774,365 265,497 7,039,862
Total Deferred Outflows of Resources 7,002,292 265,497 7,267,789
Liabilities
Accounts payable 3,498,907 343,262 3,842,169
Salaries payable 218,016 28,023 246,039
Due to other governments 64,874 10,177 75,051
Accrued interest payable 663,361 75,744 739,105
Unearned revenue 66,747 -66,747
Non current liabilities:
Compensated absences due within one year 834,949 82,043 916,992
Net OPEB liability 57,557 21,864 79,421
Net pension liability 7,836,873 1,088,911 8,925,784
Capital lease due within one year 25,832 -25,832
Capital lease due in more than one year 26,843 -26,843
Bonds due within one year 3,890,000 450,000 4,340,000
Bonds due in more than one year 56,403,676 6,050,290 62,453,966
Total Liabilities 73,587,635 8,150,314 81,737,949
Deferred Inflows of Resources
Taxes and special assessments -188 188
Pensions 7,424,016 217,834 7,641,850
Total Deferred Inflows of Resources 7,424,016 218,022 7,642,038
Net Position
Net investment in capital assets 32,064,111 23,990,746 56,054,857
Restricted for:
Economic development 6,245,652 -6,245,652
Park improvements 1,088,355 -1,088,355
Debt service 10,596,245 - 10,596,245
Net pension asset 614,011 -614,011
Unrestricted (17,563,673)1,443,445 (16,120,228)
Total Net Position $33,044,701 $25,434,191 $58,478,892
The notes to the financial statements are an integral part of this statement.
31
City of Hopkins
Statement of Activities
For the Year Ended December 31, 2017
Program Revenues Net Revenues (Expenses) and Changes in Net Position
Functions/Programs Expenses
Charges for
Services
Operating Grants
and Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Governmental Activities:
General government $ 6,751,459 $175,390 $ 1,611,811 $872,820 $ (4,091,438) $- $ (4,091,438)
Public safety 8,126,086 172,584 1,309,691 - (6,643,811)- (6,643,811)
Health and welfare 179,916 59,645 149,539 -29,268 -29,268
Highways and streets 5,932,978 125,046 3,035,679 858,918 (1,913,335)- (1,913,335)
Urban redevelopment and housing 1,354,036 146,491 184,267 - (1,023,278)- (1,023,278)
Culture and recreation 2,737,116 788,549 1,716,566 -(232,001)-(232,001)
Interest on long-term debt 1,335,290 --- (1,335,290)- (1,335,290)
Total Governmental Activities 26,416,881 1,467,705 8,007,553 1,731,738 (15,209,885)-(15,209,885)
Business-Type Activities:
Water 1,871,868 1,837,434 801 --(33,633)(33,633)
Sewer 2,406,027 2,698,307 150 --292,430 292,430
Storm sewer 460,771 809,262 25,000 --373,491 373,491
Refuse 874,750 956,056 48,288 --129,594 129,594
Pavilion/Ice arena 547,831 37,080 432,612 --(78,139)(78,139)
Housing and redevelopment authority 591,895 294,000 190,784 --(107,111)(107,111)
Total Business-type Activities 6,753,142 6,632,139 697,635 --576,632 576,632
Total Government $33,170,023 $8,099,844 $8,705,188 $1,731,738 (15,209,885)576,632 (14,633,253)
General revenues:
Property taxes 12,895,910 - 12,895,910
Tax increments 2,146,730 -2,146,730
Grants & contributions not restricted 20,510 -20,510
Unrestricted investment earnings 168,437 20,760 189,197
Gain on disposal of capital assets 69,883 (54)69,829
Transfers (3,533,235)3,533,235 -
Total General Revenues 11,768,235 3,553,941 15,322,176
Change in net position (3,441,650)4,130,573 688,923
Net position - January 1, as previously stated 34,098,004 22,233,618 56,331,622
Prior Period Adjustment 2,388,347 (930,000)1,458,347
Net position - January 1, as restated 36,486,351 21,303,618 57,789,969
Net position - December 31 $ 33,044,701 $ 25,434,191 $ 58,478,892
The notes to the financial statements are an integral part of this statement.
32
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2017
General Fund
Economic
Development Arts Center
Tax Increment
District Super
Valu
Permanent
Improvement
Revolving
Assets
Cash and cash equivalents $ 3,401,122 $ 3,266,950 $- $ 5,258,650 $ 2,318,015
Taxes receivable 77,847 2,320 1,712 --
Special assessments receivable ----111,913
Accounts receivable 224,436 34,441 29,290 -1,408,071
Rehabilitation loans receivable -----
Due from other governments 4,721 ---2,426
Interest receivable 9,949 5,233 -7,908 1,406
Due from other funds 2,649,979 474,697 ---
Inventories 91,850 ----
Prepaid items 43,523 ----
Property held for resale -697,098 -321,719 -
Total Assets $6,503,427 $4,480,739 $31,002 $5,588,277 $3,841,831
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 390,279 $ 17,021 $ 16,160 $ 8,460 $ 2,087,093
Salaries payable 198,842 3,419 7,796 --
Due to other funds --1,186,199 --
Due to other governments 8,311 -31 --
Unearned revenue 2,080 -378 --
Total Liabilities 599,512 20,440 1,210,564 8,460 2,087,093
Deferred inflows of resources:
Taxes and special assessments 51,628 1,625 850 -99,132
Total Deferred Inflows of Resources 51,628 1,625 850 -99,132
Fund balances:
Non-spendable 135,373 ----
Restricted ---5,579,817 -
Committed -4,458,674 ---
Assigned 245,494 ---1,655,606
Unassigned 5,471,420 - (1,180,412)--
Total Fund Balances (Deficits)5,852,287 4,458,674 (1,180,412)5,579,817 1,655,606
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $6,503,427 $4,480,739 $31,002 $5,588,277 $3,841,831
The notes to the financial statments are an integral part of this statement.
33
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2017
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and cash equivalents $ 9,392,519 $ 23,637,256
Taxes receivable 17,753 99,632
Special assessments receivable 2,762,263 2,874,176
Accounts receivable 1,145,603 2,841,841
Rehabilitation loans receivable 32,222 32,222
Due from other governments 1,569 8,716
Interest receivable 18,584 43,080
Due from other funds -3,124,676
Inventories -91,850
Prepaid items -43,523
Property held for resale -1,018,817
Total Assets $13,370,513 $33,815,789
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 976,748 $ 3,495,761
Salaries payable 7,959 218,016
Due to other funds 1,124,790 2,310,989
Due to other governments 56,532 64,874
Unearned revenue 64,289 66,747
Total Liabilities 2,230,318 6,156,387
Deferred inflows of resources:
Taxes and special assessments 3,263,405 3,416,640
Total Deferred Inflows of Resources 3,263,405 3,416,640
Fund balances:
Non-spendable -135,373
Restricted 7,534,189 13,114,006
Committed 699,157 5,157,831
Assigned -1,901,100
Unassigned (356,556) 3,934,452
Total Fund Balances (Deficits)7,876,790 24,242,762
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $13,370,513 $33,815,789
The notes to the financial statments are an integral part of this statement.
34
City of Hopkins
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
December 31, 2017
Fund balances of governmental funds $ 24,242,762
Amounts reported for governmental activities in the statement of net position
are different because:
Capital Assets used in governmental activities are not financial resources and,
therefore, not reported in the governmental funds.
Capital assets 97,767,971
Less accumulated depreciation (28,732,940)
Other long-term assets not available to pay current period expenditures and, therefore, are deferred in the
governmental funds.
3,416,640
Internal service funds are used by the City to charge the costs of
certain activities, such as replacement of City vehicles and equipment. The assets and
liabilities of the internal service funds are included in the governmental
activities in the statement of net position. 5,147,462
Long-term liabilities, including bonds payable and accrued interest payable, are
not due and payable in the current period and, therefore, are not reported in the
governmental funds.
Long-term liabilities (61,014,115)
Less deferred charges 227,927
Net pension liability and related deferred inflows of resources (15,260,889)
Long-term receivables are not due and payable in the current period and therefore,
are not reported in the governmental funds
Net pension asset and related deferred outflows of resources 7,249,883
Net position of governmental activities $ 33,044,701
35
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2017
General Fund
Economic
Development Arts Center
Tax Increment
District Super
Valu
Permanent
Improvement
Revolving
Revenues
Property taxes $ 10,068,131 $ 423,453 $ 244,399 $- $ 4,399
Franchise Fees 309,729 ----
Tax increments --- 1,921,687 -
Special assessments ----741,370
Intergovernmental 1,108,805 35,276 32,502 - 2,480,548
Fees, licenses and permits 810,776 -1,050 --
Charges for services 448,288 -368,675 --
Fines 208,080 ----
Investment earnings 17,780 31,461 -33,073 40,981
Other miscellaneous revenues 154,387 174,578 175,920 --
Total Revenues 13,125,976 664,768 822,546 1,954,760 3,267,298
Expenditures
Current:
General government 2,345,252 ----
Public safety 6,987,999 ----
Health and welfare 177,734 ----
Highways and streets 2,769,957 --- 1,392,210
Urban redevelopment and housing 191,331 562,254 -302,324 -
Culture and recreation 652,310 - 1,092,838 --
Debt service:
Principal retirement -----
Interest and fiscal fees -----
Capital Outlay ---- 9,584,910
Total Expenditures 13,124,583 562,254 1,092,838 302,324 10,977,120
Excess (deficiency) of revenues
over expenditures 1,393 102,514 (270,292)1,652,436 (7,709,822)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Payment to bond escrow agent -----
Transfer in --86,920 - 8,546,154
Transfer out (15,000)-- (1,090,108)-
Total Other Financing Sources (Uses)(15,000)-86,920 (1,090,108)8,546,154
Net change in fund balances (13,607)102,514 (183,372)562,328 836,332
Fund balance (deficit) - January 1, as previously stated 5,865,894 4,356,160 (997,040) 5,017,489 (639,073)
Prior period adjustment ----1,458,347
Fund balance (deficit) - January 1, as restated 5,865,894 4,356,160 (997,040) 5,017,489 819,274
Fund balance (deficit) - December 31 $5,852,287 $4,458,674 $(1,180,412)$5,579,817 $1,655,606
The notes to the financial statements are an integral part of this statement.
36
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2017
Non-major
Governmental
Funds
Total
Governmental
Funds
Revenues
Property taxes $ 2,349,049 $ 13,089,431
Franchise Fees 541,722 851,451
Tax increments 225,043 2,146,730
Special assessments 1,012,553 1,753,923
Intergovernmental 86,563 3,743,694
Fees, licenses and permits -811,826
Charges for services 191,736 1,008,699
Fines 22,724 230,804
Investment earnings 34,575 157,870
Other miscellaneous revenues 1,958,602 2,463,487
Total Revenues 6,422,567 26,257,915
Expenditures
Current:
General government 939,827 3,285,079
Public safety 166,008 7,154,007
Health and welfare -177,734
Highways and streets 384,435 4,546,602
Urban redevelopment and housing 250,418 1,306,327
Culture and recreation 362,468 2,107,616
Debt service:
Principal retirement 3,080,000 3,080,000
Interest and fiscal fees 1,050,401 1,050,401
Capital Outlay 2,169,031 11,753,941
Total Expenditures 8,402,588 34,461,707
Excess (deficiency) of revenues
over expenditures (1,980,021)(8,203,792)
Other Financing Sources (Uses)
Improvement bonds issued 13,530,000 13,530,000
Premium on improvement bonds 1,352,173 1,352,173
Payment to bond escrow agent (3,678,549) (3,678,549)
Transfer in 3,524,452 12,157,526
Transfer out (14,585,653) (15,690,761)
Total Other Financing Sources (Uses)142,423 7,670,389
Net change in fund balances (1,837,598)(533,403)
Fund balance (deficit) - January 1, as previously stated 9,714,388 23,317,818
Prior period adjustment -1,458,347
Fund balance (deficit) - January 1, as restated 9,714,388 24,776,165
Fund balance (deficit) - December 31 $7,876,790 $24,242,762
The notes to the financial statements are an integral part of this statement.
37
City of Hopkins
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended December 31, 2017
Net change in fund balances total governmental funds $ (533,403)
Amounts reported for governmental activities in the statement of activities are different because:
10,006,116
-
170,101
(11,975,974)
(938,070)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period.
The net effect of various miscelleneous transactions involving capital assets
(i.e. sales, trade-ins, and donations) is a decrease to net position
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt uses the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also,
governmental funds report the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are recorded in the statement of net position and amortized in
the statement of activities. This amount is the net effect of these differences in the treatment of
long-term debt related items.
Some pension expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore are not reported as expenditures
Change in net pension asset/liability and related deferred outflows/inflows of resources
External revenues and expenditures of the internal service funds reported in the statement of
activities are not reported as revenues and expenditures in governmental funds. (170,420)
Change in net position of governmental activities $ (3,441,650)
38
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended December 31, 2017
Original Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 10,366,866 $ 10,366,866 $ 10,068,131 $ (298,735)
Franchise Fees 290,000 290,000 309,729 19,729
Intergovernmental 1,028,426 1,028,426 1,108,805 80,379
Fees, licenses and permits 516,025 516,025 810,776 294,751
Charges for services 219,050 219,050 448,288 229,238
Fines 184,800 184,800 208,080 23,280
Investment earnings 20,000 20,000 17,780 (2,220)
Other miscellaneous revenues 210,145 210,145 154,387 (55,758)
Total Revenues 12,835,312 12,835,312 13,125,976 290,664
Expenditures
General government 2,243,327 2,243,327 2,345,252 (101,925)
Public safety 6,781,929 6,781,929 6,987,999 (206,070)
Health and welfare 190,723 190,723 177,734 12,989
Highways and streets 2,760,432 2,760,432 2,769,957 (9,525)
Urban redevelopment and housing 124,820 124,820 191,331 (66,511)
Culture and recreation 657,381 657,381 652,310 5,071
Capital Outlay 61,700 61,700 -61,700
Total Expenditures 12,820,312 12,820,312 13,124,583 (304,271)
Excess (deficiency) of revenues over
expenditures 15,000 15,000 1,393 (13,607)
Other Financing Sources (Uses):
Transfer out (15,000)(15,000)(15,000)-
Net change in fund blance $-$-(13,607)$(13,607)
Fund balance - January 1 5,865,894
Fund balance - December 31 $ 5,852,287
The notes to the financial statements are an integral part of this statement.
39
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Economic Development
Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 310,900 $ 310,900 $ 423,453 $ 112,553
Intergovernmental --35,276 35,276
Investment earnings 30,000 30,000 31,461 1,461
Other miscellaneous revenues 40,300 40,300 174,578 134,278
Total Revenues 381,200 381,200 664,768 283,568
Expenditures
Current:
Urban redevelopment and housing 210,447 210,447 562,254 (351,807)
Total Expenditures 210,447 210,447 562,254 (351,807)
Net change in fund balance $170,753 $170,753 102,514 $(68,239)
Fund balance - January 1, reported 4,356,160
Fund balance - December 31 $ 4,458,674
The notes to the financial statements are an integral part of this statement.
40
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Arts Center
Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 250,000 $ 250,000 $ 244,399 $ (5,601)
Intergovernmental 35,597 35,597 32,502 (3,095)
Fees, licenses and permits --1,050 1,050
Charges for services 390,817 390,817 368,675 (22,142)
Other miscellaneous revenues 172,400 172,400 175,920 3,520
Total Revenues 848,814 848,814 822,546 (26,268)
Expenditures
Current:
Culture and recreation 836,305 836,305 1,092,838 (256,533)
Capital Outlay 398,200 398,200 -398,200
Total Expenditures 1,234,505 1,234,505 1,092,838 141,667
Other Financing Sources (Uses)
Transfer in 86,920 86,920 86,920 -
Net change in fund balance $(298,771)$(298,771)(183,372)$115,399
Fund balance - January 1, reported (997,040)
Fund balance - December 31 $ (1,180,412)
The notes to the financial statements are an integral part of this statement.
41
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Tax Increment District Super Valu
Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 2,400,000 $ 2,400,000 $ 1,921,687 $ (478,313)
Investment earnings 8,000 8,000 33,073 25,073
Total Revenues 2,408,000 2,408,000 1,954,760 (453,240)
Expenditures
Urban redevelopment and housing 460,540 460,540 302,324 158,216
Total Expenditures 460,540 460,540 302,324 158,216
Other Financing Sources (Uses)
Transfer out (1,330,125) (1,330,125) (1,090,108) 240,017
Net change in fund balance $617,335 $617,335 562,328 $(55,007)
Fund balance - January 1, reported 5,017,489
Fund balance - December 31 $ 5,579,817
The notes to the financial statements are an integral part of this statement.
42
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2017
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility
Nonmajor
Proprietary
Funds Totals
Governmental
Activities
Internal
Service Funds
Assets
Current assets:
Cash and cash equivalents $- $ 147,636 $ 1,391,948 $ 1,639,203 $ 3,178,787 $ 1,306,405
Taxes receivable ---114 114 -
Accounts receivable 128,568 252,686 12,486 91,244 484,984 -
Accrued interest receivable -157 1,809 1,646 3,612 3,991
Due from other governments ---121,848 121,848 -
Inventory 26,590 3,825 43 -30,458 -
Prepaid expenses -250 -15,573 15,823 -
Total current assets 155,158 404,554 1,406,286 1,869,628 3,835,626 1,310,396
Noncurrent assets:
Capital Assets, non depreciable:
Land 14,097 5,150 26,800 208,252 254,299 -
Construction in progress 2,085,629 2,278,755 1,167,776 556,431 6,088,591 -
Capital Assets, depreciable
Building and structures 33,089 --8,277,451 8,310,540 -
Distribution system 14,200,120 9,099,497 12,232,445 125,614 35,657,676 -
Machinery and equipment 422,647 670,447 9,000 1,213,126 2,315,220 9,643,088
Less accumulated depreciation (6,889,008)(4,609,081)(4,487,280)(6,149,921)(22,135,290)(4,891,097)
Total noncurrent assets 9,866,574 7,444,768 8,948,741 4,230,953 30,491,036 4,751,991
Total Assets 10,021,732 7,849,322 10,355,027 6,100,581 34,326,662 6,062,387
Deferred outflows of resources:
Pensions 96,686 46,953 11,233 110,625 265,497 -
Total Deferred Outflows 96,686 46,953 11,233 110,625 265,497 -
Liabilities
Current liabilities:
Accounts payable 154,547 69,421 1,637 117,657 343,262 3,147
Salaries payable 10,011 5,046 1,233 11,733 28,023 -
Due to other funds 789,632 ---789,632 24,055
Due to other governments 1,374 (2,806)-11,609 10,177 -
Compensated absences 15,869 6,127 -60,047 82,043 834,949
Accrued interest payable 26,426 38,844 9,642 832 75,744 479
Capital lease - current -----25,832
Revenue bonds - current 210,000 105,000 115,000 20,000 450,000 -
Total current liabities 1,207,859 221,632 127,512 221,878 1,778,881 888,462
43
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2017
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility
Nonmajor
Proprietary
Funds Totals
Governmental
Activities
Internal
Service Funds
Noncurrent liabilities:
Net OPEB liability 5,532 5,532 -10,800 21,864 -
Net pension liability 396,549 192,573 46,071 453,718 1,088,911 -
Capital lease payable -----26,463
Revenue bonds payable (net of unamortized
discounts and premium)2,791,110 2,223,462 954,491 81,227 6,050,290 -
Toal noncurrent liabilities 3,193,191 2,421,567 1,000,562 545,745 7,161,065 26,463
Total Liabilities 4,401,050 2,643,199 1,128,074 767,623 8,939,946 914,925
Deferred inflows of resources:
Taxes and special assessments ---188 188 -
Pensions 79,329 38,524 9,216 90,765 217,834 -
Total Deferred Inflows of Resources 79,329 38,524 9,216 90,953 218,022 -
Net Position
Net investment in capital assets 6,865,464 5,116,306 7,879,250 4,129,726 23,990,746 4,699,696
Unrestricted (1,227,425)98,246 1,349,720 1,222,904 1,443,445 447,766
Total Net Position $5,638,039 $5,214,552 $9,228,970 $5,352,630 $25,434,191 $5,147,462
The notes to the financial statements are an integral part of this statement.
44
City of Hopkins
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2017
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility
Nonmajor
Proprietary
Funds Total
Governmental
Activities
Internal
Service Funds
Operating revenues
Charges for services $ 1,826,228 $ 2,682,702 $ 828,709 $ 1,709,050 $ 7,046,689 $ 471,482
Other 11,356 15,755 5,553 32,109 64,773 -
Total operating revenues 1,837,584 2,698,457 834,262 1,741,159 7,111,462 471,482
Operating expenses
Cost of sales and services 1,298,133 1,990,539 137,566 1,253,909 4,680,147 53,548
Administration 207,605 158,847 53,849 439,758 860,059 7,983
Depreciation 303,421 202,237 246,119 319,061 1,070,838 656,893
Total operating expenses 1,809,159 2,351,623 437,534 2,012,728 6,611,044 718,424
Operating income (loss)28,425 346,834 396,728 (271,569)500,418 (246,942)
Nonoperating revenues (expenses)
Miscellaneous revenue 651 --2,127 2,778 -
Investment earnings 656 2,729 8,383 8,992 20,760 10,567
Interest/fiscal agent expense (62,709)(54,405)(23,237)(1,747)(142,098)(3,928)
Intergovernmental grants ---215,534 215,534 -
Gain on sale of assets -(54)--(54)69,883
Total nonoperating revenues
(expenses)(61,402)(51,730)(14,854)224,906 96,920 76,522
Income (loss) before contributions and
transfers (32,977)295,104 381,874 (46,663)597,338 (170,420)
Transfers and contributions
Transfers in 1,796,406 1,194,551 1,027,525 -4,018,482 -
Transfers out (172,910)(131,833)(155,504)(25,000)(485,247)-
Change in net position 1,590,519 1,357,822 1,253,895 (71,663)4,130,573 (170,420)
Net position - January 1, as previously stated 4,977,520 3,856,730 7,975,075 5,424,293 22,233,618 5,317,882
Prior period adjustment (930,000)---(930,000)-
Net position - January 1, as restated 4,047,520 3,856,730 7,975,075 5,424,293 21,303,618 5,317,882
Net position - December 31 $5,638,039 $5,214,552 $9,228,970 $5,352,630 $25,434,191 $5,147,462
The notes to the financial statements are an integral part of this statement.
45
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2017
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Cash Flows from Operating Activities
Receipts from customers and users $ 1,807,842 2,653,548 $ 832,549 $ 1,673,595 $ 6,967,534 $ 26,470
Receipts for interfund services provided - - - - 445,012
Internal activity-payments to other funds 390,209 - - - 390,209 24,056
Payments to suppliers (1,388,687) (1,763,444) (72,808) (808,174) (4,033,113) (64,290)
Payments to employees (450,215) (251,449) (51,482) (686,880) (1,440,026) -
Payments for interfund services used (207,605) (158,847) (53,849) (565,696) (985,997) 48,016
Net cash provided by (used in) by operating activities 151,544 479,808 654,410 (387,155) 898,607 479,264
Cash Flows from Noncapital Financing Activities
Intergovernmental grants - - - 215,651 215,651 -
Taxes - - - - - -
Transfers in 1,796,406 1,194,551 1,027,525 - 4,018,482 -
Transfers out (172,910) (131,833) (155,504) (25,000)
Miscellaneous income - - - 2,127 2,127
Net cash provided by (used in) noncapital financing
activities 1,623,496 1,062,718 872,021 192,778 4,236,260 -
Cash Flows from Capital and Related Financing Activities:
Issuance of debt 272,650 1,223,033 43,050 - 1,538,733 -
Construction of capital assets (1,835,084) (2,488,538) (1,019,188)- (5,342,810) (1,631,787)
Proceeds from sales of capital assets - (54) - - (54) 69,883
Interest and other payments (66,453) (35,975) (24,486)(951) (127,865) (8,149)
Capital lease payments - - - - - (49,833)
Bond payments (145,000) (105,000) (115,000) (20,000)(385,000) -
Net cash provided by (used in) capital and related
financing activities (1,773,887) (1,406,534) (1,115,624) (20,951) (4,316,996) (1,619,886)
Cash Flows From Investing Activities
Interest received 656 2,729 8,383 8,992 20,760 10,567
Net increase (decrease) in cash and cash equivalents 1,809 138,721 419,190 (206,336) 353,384 (1,130,055)
Cash and cash equivalents - January 1 (1,809) 8 3,100 895,979 897,278 1,196,246
Cash and cash equivalents - December 31 $- $ 138,729 $ 422,290 $ 689,643 $ 1,250,662 $ 66,191
46
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2017
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Funds Totals Service Funds
Reconciliation of Cash and Cash Equivalents at End of Year to
Cash and Investments per Statement of Net Position
Ending cash and cash equivalents per cash flow statement $- $ 138,729 $ 422,290 $ 689,643 $ 1,250,662 $ 69,767
Investments - 8,907 969,658 949,560 1,928,125 1,236,638
Cash and Investments per Statement of Net Position $- $ 147,636 $ 1,391,948 $ 1,639,203 $ 3,178,787 $ 1,306,405
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)$ 28,425 $ 470,740 $ 396,728 $ (271,569) $ 624,324 $ (246,942)
Adjustments to reconcile operating income
(loss) to net cash provided by (used in) operating
activities:
Depreciation expense 303,421 202,237 246,119 319,061 1,070,838 656,893
(Increase) decrease in:
Accounts receivable (29,742) (44,909) (1,713) (67,018) (143,382) -
Due from other funds - - - - - -
Inventory 4,977 19,868 - - 24,845 -
Prepaid expense - (124,156)- (15,573) (139,729) -
Pensions (deferred outflows) 117,529 58,040 9,242 135,460 320,271
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable (601,465) (57,178) 128 26,691 (631,824) 45,257
Due to other funds 390,209 - - (448,938) (58,729) -
Due to other governments (115) (12,450)- 5,157 (7,408) -
Unearned revenue - - - (546)(546)
Net Pension (91,543) (46,656)(581) (106,990) (245,770)
Pensions (deferred inflows) 29,848 14,272 4,487 37,110 85,717 -
Net cash provided (used) by operating activities $ 151,544 $ 479,808 $ 654,410 $ (387,155)$ 898,607 $ 455,208
The notes to the financial statements are an integral part of this statement.
47
NOTES TO THE
FINANCIAL STATEMENTS
48
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 U.S. 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 and departments of the
City and its component units, for which the City is considered to be financially accountable. A blended component
unit, although legally separate entity is, in substance, part of the City’s operations and so data from this unit is
combined with data of the primary government. The City’s blended component unit has a March 31 year-end, however
when blended with the City it is shown with 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. The
HRA's governing body is the same as the governing body of the primary government in that all members of the Hopkins
City Council are also the Hopkins Housing and Redevelopment Authority Commissioners. The City of Hopkins in its
capacity as the HRA Board of Directors, has operational responsibility for the HRA. Therefore there is a burden
relationship between the primary government and the component unit. The housing activity is supported in part by
federal subsidies. There is an extensive trust agreement between the HRA and HUD regarding the facility. The HRA is
included in the City’s enterprise funds. Separate financials are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., statement of net position and the statement of changes in net position)
report information on all activities of the primary government and its component units. The interfund services provided
and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
49
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at year-end.
Governmental funds are accounted for using the current financial resources measurement focus and the modified
accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become
measurable and available). “Measurable” means the amount of the transaction can be determined and “available”
means collectible within the current period or within sixty days thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental revenues,
charges for services, and investment earnings. Major revenues that are not susceptible to accrual include fees and
miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is
incurred, except for principal and interest on general long-term debt and compensated absences that are recognized
when due and payable.
The City reports the following major governmental funds:
The general fund is the primary operating fund of the City. It is used to account for all financial resources except
those required to be accounted for in another fund.
The economic development special revenue fund accounts for development opportunities of the city. Sources of
funds are derived from the administration of loans and an annual tax levy.
The arts center special revenue fund accounts for the activities of the Hopkins Center for the Arts. Sources of funds
are derived from leases, ticket sales, admission fees, grants and donations.
The tax increment district super valu special revenue fund accounts for the activities of the Super Valu tax
increment development district. Sources of funds are a tax increment levy.
The permanent improvement revolving capital projects fund accounts for resources and accumulated payments for
street improvements funded with bonds and special assessments levied on benefited property.
The City reports the following major proprietary funds:
The water utility fund accounts for the operations of the City-owned water distribution system. The water bonds of
2009A, 2012B and 2013A are included as part of this fund since revenues of the water fund are pledged to pay
principal and interest on this bond.
The sewer utility fund accounts for the operations of the City-owned sewer lift stations and disposal system. The
sewer bonds of 2009A, 2012B and 2013A are included as part of this fund since revenues of the sewer fund are
pledged to pay principal and interest on this bond.
The storm sewer utility fund accounts for the operations and improvements of the storm water drainage system. The
storm water bond issues of 2009A, 2010B, 2012B and 2013A are included as part of this fund since revenues of the
storm sewer fund are pledged to pay principal and interest on these bonds.
50
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Additionally, the City reports the following fund types:
Governmental Funds
Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that
are legally restricted or committed by Council to expenditures for specified purposes.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment
of, general long-term debt principal, interest, and related costs.
Capital Project Funds - Capital project funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and infrastructure, other than those financed by proprietary
funds or special revenue funds.
Proprietary Funds
Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis, be financed or recovered
primarily through user charges.
Internal Service Funds – Internal service funds are used to account for the financing of goods and services provided
by one department to other departments of the City on a cost-reimbursement basis. Internal service funds are used
for equipment replacement, insurance deductions and employee benefits.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements,
however interfund services provided and used are not eliminated in the process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the City enterprise funds and internal service
funds are charges to customers for sales and service. Operating expenses for enterprise funds and internal service funds
include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, and then use unrestricted resources as they are needed.
D. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments pursuant to
Minnesota Statutes (see note 4). Earnings from such investments are allocated to the respective funds on the basis of
applicable cash balance participation by each fund. Investments in certificates of deposit with a maturity date of less
than one year at the date of purchase are reported at cost or amortized cost, which approximates fair value. Investments
held longer than one year are reported at fair value, based on quoted market prices.
51
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which is used
essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary funds consider all
investments to be cash equivalents. Restricted cash and investments are reported separately on the financial statement.
E. INTERFUND RECEIVABLES/PAYABLES
Activity between funds that is representative of lending/borrowing arrangements and transactions between funds that
are outstanding at the end of the fiscal year are referred to “due to/from other funds” Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide financial
statements as “internal balances.”
The non-current portion of due from other funds is offset by nonspendable fund balance in the general fund to indicate
that this portion of fund balance is not available for appropriation and is not expendable available financial resources.
F. INVENTORIES AND PREPAID ITEMS
All inventories are accounted for using the consumption method and are valued at cost using the first-in/first-out (FIFO)
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. Prepaid items are reported using the consumption method and
recorded as expenditures/expenses at the time of consumption.
G. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements and the proprietary fund
financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated capital assets are
recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Assets not being depreciated include land and construction in progress. Buildings, equipment, and infrastructure of the
City and the HRA are depreciated using the straight-line method over the estimated useful lives as follows:
Buildings 30 - 40 years
Mains and Lines 40 - 50 years
Streets 20 - 25 years
Improvements 10 - 20 years
Vehicles 3 - 30 years
Equipment 3 - 20 years
H. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of
net position that applies to a future period(s) and will not be recognized as an outflow of resources
(expense/expenditure) until then. The City has two items that qualify for reporting in this category. It is the deferred
charge on refunding reported in the government-wide statement of net position and the deferred charge for pensions
52
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
(see Pension section below for explanation). A deferred charge on refunding results from the difference in the carrying
value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of
the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an
inflow of resources (revenue) until that time. The City has one item item that qualifies for reporting in this category. It
is the deferred charge for pensions (see Pension section below for explanation). The City also has one type of item,
which arises under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly,
the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues from four sources: property taxes, special assessments, loans and grants. These amounts
are deferred and recognized as an inflow of resources in the period that the amounts become available.
I. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Employees hired prior to
August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month of full-time service, instead of
flex leave.
Employees hired prior to August 1, 1998, that have not opted for flex leave, shall be entitled to severance pay, after
completion of five years of continuous City employment. Severance pay is calculated by multiplying the total number
of continuous years in the City employ and/or accumulated sick leave by the daily wage rate prevailing at date of
severance, at one day per year of such employment, to a maximum of 20 days. Such severance money shall be paid in
case of separation caused by death, eligible retirements, or medically attested disability preventing an employee from
performing the major duties of the position or separation for non-disciplinary reasons.
Accumulated vacation, flex and vested severance pay is reported as an expense and an accrued liability as the benefits
accrue to employees in the government-wide and proprietary fund financial statements. A liability for these amounts is
reported in the governmental funds only if benefits have matured as a result of employee resignations and retirements.
The employee benefits internal service fund reports the governmental funds’ liability for compensated absences on the
accrual basis.
J. PENSIONS
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by
PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer
payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense
associated with the City's requirement to contribute to the Hopkins Fire Relief Association, information about the Plan's
fiduciary net position and additions to/deductions from the Hopkins Fire Relief Association Plan's fiduciary net position
have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including
refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
53
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
K. LONG-TERM OBLIGATIONS
In the government-wide financial statements, and proprietary fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts, amortized over the life of the bonds.
Bonds payable are reported net of the applicable bond premium or discount.
In the governmental fund financial statements bond premiums and discounts, as well as bond issuance costs are
recognized during the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
L. NET POSITION/FUND EQUITY
Net position represents the difference between assets and liabilities in the government-wide financial statements. Net
position invested in capital assets consists of capital assets net of accumulated depreciation, reduced by the outstanding
balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the
government-wide financial statements when there are limitations imposed on their use through external restrictions
imposed by creditors, grantors, laws or regulations of other governments.
In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for
which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – portions of fund balance related to prepaids, inventories, long-term receivables, and land held for
resale.
Restricted – funds are constrained by external parties (statute, grantors, bond agreements, etc.).
Committed – fund constraints are established and modified by a resolution approved by the City Council.
Assigned – consists of internally imposed constraints. These constraints are established by the City Council and/or
management. The City Council also delegates the authority to assign fund balance to the Finance Director per City
Legislative Policy 6-G, Fund Balance.
Unassigned – is the residual classification for the General Fund and also reflects negative residual amounts in other
funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is
the City’s policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it
is the City’s policy to use committed first, then assigned, and finally unassigned amounts.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund of a
minimum of 5 months or 42% of the previous year’s budgeted expenditures.
54
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
M. INTERFUND TRANSACTIONS
Inter-fund services provided and used 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.
N. 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 5 and December 5.
In the governmental fund financial statements property taxes are accrued and recognized as revenue for collections
within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as delinquent taxes
receivable, and are fully offset by deferred inflows of resources 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.
O. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Commercial Development Revenue Notes/Bonds in accordance with the
Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the
public interest. The obligations are secured by the property financed and are payable solely from payments received on
the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers from
the bond holder to the private-sector entity served by the debt issuance. Neither the City, the State, nor any political
subdivision thereof is obligated in any manner for repayment of the obligations. Accordingly, the bonds are not
reported as liabilities in the accompanying financial statements. As of December 31, 2017, there were 7 notes/bond
issues outstanding, with an aggregate principal amount payable of approximately $40 million.
P. USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. 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.
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET
AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and
net position – governmental activities as reported in the government-wide statement of net position. One element of
that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the funds. Details of this difference are as follows:
Bonds payable $ 60,293,676
Accrued interest payable 663,361
Net OPEB obligation 57,557
Net adjustment to reduce fund balance - total governmental
funds to arrive at net position - governmental activities $ 61,014,594
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT- WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances – total governmental funds and change in net position of governmental activities
as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental
funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.” The details of this difference are as follows:
Capital outlay $ 11,755,265
Depreciation expense (1,749,149)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position
of governmental activities $ 10,006,116
Another element of that reconciliation explains that, “the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt uses financial resources of the
governmental funds. Neither of these transactions has any effect on the net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.” The details of these differences are as follows:
Principal repayments $ (3,080,000)
Issuance of general obligation bonds 13,530,000
Add premium 1,352,173
Less deferred loss on refunding debt -
OPEB expense (37,712)
Amortization of deferred losses on refunding 40,778
Amortization of bond premium and discount (125,472)
Prior year interest expense (366,675)
Accrue interest expense for current year 662,882
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities 11,975,974
56
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds except the Section 8 and Hennepin County CDBG special revenue funds, the debt service funds
and the capital projects funds, which are not budgeted. A capital improvement plan is reviewed annually by the City
Council for the capital projects funds and utility funds. However, appropriations for major projects are not adopted
until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. All
annual appropriations lapse at fiscal year end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements and set forth
in Section 7.04 of the City Charter.
1. The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed budget
and an explanatory budget message in a form and manner as prescribed by the City Charter.
2. The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer comments.
3. The Council shall adopt the tax levy by resolution no later than a December date, which is annually established by
law for the county auditor to levy taxes. The budget shall set forth the total for each budgeted fund with such
segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget
control.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any
revisions that alter the total expenditures of any fund must be approved by the City Council and are limited to the
amount revenues exceed the budgets or authorize the transfer of sums from unexpended balances to other purposes.
Budgeted expenditure appropriations lapse at year-end. The level of legal control is at the fund level.
5. The Council made no supplemental budgetary appropriation throughout the year.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2017, actual expenditures exceeded the budgeted amounts in the following funds:
General Fund $ 304,271
Economic Development 351,807
State Chemical Assessment Team 34,804
Parking 39,323
Hopkins Race & Equity Initiative 3,004
Depot Coffee House 16,428
Tax Increment Marketplace &Main 115,206
Tax Increment District Oakes of Mainstreet 4,964
These over expenditures were funded by greater than anticipated revenues of the General, Economic Development,
State Chemical Assessment Team, Hopkins Race & Equity Initiative Tax Increment Marketplace & Main and Tax
Increment Oakes of Mainstreet funds, from fund balance in the General, Economic Development, Parking, and Tax
Increment District Oakes of Mainstreet funds, and by future revenues in the State Chemical Assessment Team, Depot
Coffee House and Tax Increment Oakes of Mainstreet funds.
57
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 and state governments. The Community Development Block
Grant Funds is a non-budgeted fund.
C. FUND BALANCE DEFICITS
At December 31, 2017, the following funds had deficit fund balances or net position. These deficits will be funded
through future tax levies, contributions, grants, charges for services or developer payments:
Art Center $ 1,180,412
State Chemical Assessment Team 22,998
Depot Coffee House 31,288
Tax Increment District Sonoma 66,127
5th Avenue Flats 391,831
Tax Increment District Marketplace & Main 209,222
GO Bonds of 2016C 16,825
Tax Increment Revenue Bonds of 2016D 1,362
Capital Improvement 145,647
Municipal State Aid Construction 650,591
D. NET POSITION RESTRICTED BY ENABLING LEGISLATION
The government-wide statement of net position reports $6,245,652 in restricted net position for economic development,
of which $6,213,430 is restricted by enabling legislation. The remaining $32,222 is CDBG funds restricted by outside
parties.
4. DEPOSITS AND INVESTMENTS
As of December 31, 2017 the City had the following deposits and investments:
Investment Type Fair Value
Government sponsored entities $ 11,095,270
Municipal obligations 4,509,399
Negotiable certificates of deposit 1,955,662
Money market mutual fund 10,114,702
Deposits 447,415
Total fair value cash and investments $ 28,122,448
Interest rate risk – Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in
interest rates. In accordance with City of Hopkins Legislative Policy 6-B, Standards of Investments, the city manages its
exposure to declines in fair values by structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.
58
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
At December 31, 2017 the City had the following investment maturities:
Investment Maturities (in Years)
Less No
Total than One 1-5 6-10 Maturity
Investment Type:
Government sponsored entities
FHLB $ 10,445,165 $ 9,453,320 $ 991,845 $ - $ -
FFCB 650,105 650,105 - - -
Municipal obligations 4,509,399 1,757,788 2,652,444 99,167 -
Negotiable certificates of deposit 1,955,662 1,470,000 485,662 - -
Money market mutual fund 10,114,702 - - - 10,114,702
$ 27,675,033 $ 13,331,213 $ 4,129,951 $ 99,167 $ 10,114,702
Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations.
Credit risk is measured using credit quality ratings of investments in debt securities as described by nationally recognized
rating agencies such as Standard & Poor’s and Moody’s. According to the City’s investment policy commercial paper
shall be restricted to issues, which mature in 270 days or less with a rating of A-1 (Moody’s), P-1 (Standard & Poor’s) or
F-1 (Fitch) among at least two of the three rating agencies.
The City is authorized by Minnesota Statutes to invest in the following:
(a) Direct obligations or obligations guaranteed by the United States or its agencies
(b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose
only investments are in securities described in (a) above
(c) General obligations in the State of Minnesota or any of its municipalities
(d) Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality,
and maturity in 270 days or less; and
(f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries
(g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with
capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
The following table lists the credit quality ratings per Moody’s and/or Standard and Poor’s and/or Fitch of the City’s
investments at December 31, 2017.
Quality Ratings
Not
Total AAA AA Rated
Investment Type:
$ 10,445,165 $ - $ 10,445,165 $ -
650,105 - 650,105
4,509,399 1,174,543 3,334,856 -
1,955,662 - - 1,955,662
Government securities
FHLB
FFCB
Municipal obligations Negotiable
certificates of deposit Demand
deposits 10,114,702 - - 10,114,702
$ 27,675,033 $ 1,174,543 $ 14,430,126 $ 12,070,364
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Custodial credit risk
Deposits – For deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.
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. Authorized collateral includes the
legal investments described above, 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, 2017 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.
Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside party. All
investments held by the City are insured or registered or are held by the City or its agent in the City’s name. The City has
no investments that are uninsured or unregistered nor are any investments held by a counterparty or a counterparty's trust
department or agent that is not in the city's name.
Concentration of credit risk – This is the risk associated with investing a significant portion of the City’s investments
(considered 5% or more) in the securities of a single issuer, excluding U.S. explicitly guaranteed investments (Treasuries),
investment pools, and mutual funds. As of December 31, 2017, the city had no investments exceeding 5% or more for a
single issuer.
Fair Value Measurement – The City used fair value measurements to record fair value adjustments to certain assets and
liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value,
establishes a framework for measuirng fair value, establishes a fair value hierarchy based on the quality of inputs used to
measure fair falue, and requires expanded disclosures about fair value measurements.
In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the
valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is
based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and
liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation
techniques as follows:
Level 1 - Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active
markets accessible at the measurement date of identical financial assets and liabilities.
Level 2 - Financial assets and liabilities are values based on quoted prices for similar assets, or inputs that are
observable, eiher directly or indirectly for substantially the full term through corroboration with observable
market data.
Level 3 - Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset,
inputs that relfect the reporting entity's own assumptions about the assumptions market participants and would
use in pricing the assets.
As of December 31, 2017 the City's investments fall into the following categories of fair value:
Level 1 Level 2 Level 3 Total
U.S. Government Securities $ - $ 11,095,270 $ - $ 11,095,270
Municipal Obligations - 4,509,399 - 4,509,399
Negotiable Certificates of Deposit - 1,955,662 - 1,955,662
$ - $ 17,560,331 $ - 17,560,331
Investments measured at amortized cost 10,114,702
$ 27,675,033
60
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2017 were as follows:
Beginning Ending
Balance Increase Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated
Land $ 6,157,677 $ - $- $- $ 6,157,677
Construction in progress 10,517,925 11,663,967 - (8,728,698) 13,453,194
Total not being depreciated 16,675,602 11,663,967 - (8,728,698) 19,610,871
Capital assets, being depreciated
Buildings 20,681,520 4,335 - - 20,685,855
Other Improvements 46,428,513 4,879 - 8,728,698 55,162,090
Vehicles 4,156,157 1,233,189 (494,456)- 4,894,890
Machinery & equipment 6,613,890 499,965 (56,124)- 7,057,731
Total being depreciated 77,880,080 1,742,368 (550,580) 8,728,698 87,800,566
Less accumulated depreciation
Buildings (7,186,411) (509,545) - - (7,695,956)
Other Improvements (18,216,663) (1,183,188) - - (19,399,851)
Vehicles (2,139,901) (390,966) 494,456 - (2,036,411)
Machinery & equipment (4,204,992) (342,950) 56,124 - (4,491,818)
Total accumulated depreciation (31,747,967) (2,426,649) 550,580 - (33,624,036)
Total capital assets, being
depreciated, net 46,132,113 (684,281)- 8,728,698 54,176,530
Governmental activities capital
assets, net $ 62,807,715 $ 10,979,686 $ - $- $ 73,787,401
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type Activities:
Capital assets, not being depreciated
Land $ 254,299 $ - $- $ $ 254,299
Construction in progress 4,610,898 4,894,346 - (3,416,653) 6,088,591
Total not being depreciated 4,865,197 4,894,346 - (3,416,653) 6,342,890
Capital assets, being depreciated
Buildings 8,242,569 - - 67,971 8,310,540
Infrastructure 20,229,875 16,928 - - 20,246,803
Other Improvements 12,062,191 - - 3,348,682 15,410,873
Vehicles 1,106,548 459,668 (165,314)- 1,400,902
Machinery & equipment 915,581 - (1,263)- 914,318
Total being depreciated 42,556,764 476,596 (166,577) 3,416,653 46,283,436
Less accumulated depreciation
Buildings (5,086,556) (241,944) - - (5,328,500)
Infrastructure (12,609,100) (418,875) - - (13,027,975)
Other Improvements (2,320,932) (272,071) - - (2,593,003)
Vehicles (582,215) (101,945) 137,070 - (547,090)
Machinery & equipment (602,719) (36,003) - - (638,722)
Total accumulated depreciation (21,201,522)
(1,070,838) 137,070 - (22,135,290)
Total capital assets, being
depreciated, net 21,355,242 (594,242) (29,507) 3,416,653 24,148,146
Business-type activities capital
assets, net $ 26,220,439 $ 4,300,104 $ (29,507) $ - $ 30,491,036
61
&LW\RI+RSNLQV0LQQHVRWD
127(672),1$1&,$/67$7(0(176
'HFHPEHU
'HSUHFLDWLRQH[SHQVHZDVFKDUJHGWR&LW\IXQFWLRQVDVIROORZV
*RYHUQPHQWDODFWLYLWLHV
*HQHUDOJRYHUQPHQW
3XEOLFVDIHW\
+LJKZD\VDQGVWUHHWV
8UEDQUHGHYHORSPHQWDQGKRXVLQJ
&XOWXUHDQGUHFUHDWLRQ
&DSLWDODVVHWVKHOGE\WKHJRYHUQPHQW
VLQWHUQDOVHUYLFHIXQGVDUH
FKDUJHGWRWKHYDULRXVIXQFWLRQVEDVHGRQWKHLUXVDJHRIWKHDVVHWV
7RWDOGHSUHFLDWLRQH[SHQVHJRYHUQPHQWDODFWLYLWLHV
%XVLQHVVW\SHDFWLYLWLHV
:DWHU
6HZHU
6WRUP6HZHU
5HIXVH
3DYLOLRQ,FHDUHQD
+RXVLQJDQG5HGHYHORSPHQW$XWKRULW\
7RWDOGHSUHFLDWLRQH[SHQVHEXVLQHVVW\SHDFWLYLWLHV
&RQVWUXFWLRQFRPPLWPHQWV
7KH&LW\KDVDFWLYHFRQVWUXFWLRQSURMHFWVDVRI'HFHPEHU7KHSURMHFWVLQFOXGHVWUHHWDQGSDUNLPSURYHPHQWV
7KH&LW\¶VFRPPLWPHQWZLWKFRQWUDFWRUVUHODWHGWRWKHVHSURMHFWVLV
2Q2FWREHUWKH&LW\&RXQFLOHQWHUHGLQWRD\HDUPDLQWHQDQFHDJUHHPHQWZLWK6(+'HVLJQ%XLOG,QFIRU
LQVSHFWLRQPDLQWHQDQFHFOHDQLQJDQGSDLQWLQJRIWKHFLW\
VWZRZDWHUWRZHUV7KHFRQWUDFWFRPPLWPHQWWRWDOV
DQGZLOOEHSDLGLQDQQXDOLQVWDOOPHQWVEHJLQQLQJLQ
,17(5)81'5(&(,9$%/(6$1'3$<$%/(6
7KHIROORZLQJIXQGVKDGDPRXQWVUHFHLYDEOHIURPRWKHUIXQGVDQGWKHUHVSHFWLYHIXQGVKDGHTXDODPRXQWVSD\DEOHWR
RWKHUIXQGVDW'HFHPEHU
'XHIURP2WKHU)XQGV
(FRQRPLF
*HQHUDO 'HYHORSPHQW 7RWDO
'XHWRRWKHUIXQGV
1RQPDMRUJRYHUQPHQWDO
$UWV&HQWHU
:DWHU
7RWDOGXHWRRWKHUIXQGV
7KHLQWHUIXQGUHFHLYDEOHVDQGSD\DEOHVDUHWRHOLPLQDWHQHJDWLYHFDVKEHWZHHQIXQGVDQGWRDOORZIRUGHYHORSPHQWORDQV
RUWRIDFLOLWDWHDSURMHFWRURSHUDWLRQVRIDQRWKHUIXQG
6562
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31, 2017:
Transfers in
Permanent
Art Improvement Non-major Storm
Center Revolving Governmental Water Sewer Sewer Total
Transfers out:
General $ - $- $ 15,000 $ - $ - $ - $ 15,000
Tax Increment
Super Valu 1,090,018 1,090,018
Water - - 172,910 - - - 172,910
Sewer - - 131,833 - - - 131,833
Storm Sewer - - 155,504 - - - 155,504
Non-major
governmental 86,920 8,546,154 1,934,187 1,796,406 1,194,551 1,027,525 14,585,743
Non-major
business-type - - 25,000 - - - 25,000
Total transfers in $ 86,920 $ 8,546,154 $ 3,524,452 $ 1,796,406 $ 1,194,551 $ 1,027,525 $ 16,176,008
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
Non-routine transfers include the following:
6) Annual transfers from water, sewer, storm sewer and refuse funds for lease payments on new public works
facility.
7) An annual transfer, from the non-major governmental Communication funds to the Art Center Fund totaling
$86,920 to pay the original debt for building the facility.
8) Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments.
9) Transfers from non-major governmental funds to Permanent Improvement Revolving, water, sewer and storm
storm sewer and non-major governmental funds for bond proceeds.
10) Transfers from water, sewer and storm sewer to non-major governmental debt funds for bond payment
contributions.
8. LEASES
The city has entered into a lease agreement as a lessee for financing the acquisition of an aerial lift fire truck with a
down payment of $445,427. The lease agreement qualifies as a capital lease for accounting purposes and, therefore,
has been recorded at the present value of their future minimum lease payments as of the inception date.
The asset acquired through the capital lease is as follows:
Governmental Activities
Asset:
Machinery and equipment $ 870,427
Less: Accumulated depreciation (398,900)
Total $ 471,527
63
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
The future minimum lease obligations and the net present value of these minimum lease payments as of December
31, 2017 are as follows:
Governmental
Year Ending December 31,Activities
2018 54,217
Total minimum lease payments 54,217
Less: amount representing interest (1,922)
Present value of minimum lease payments $ 52,295
9. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are issued as 20-year serial bonds.
Refunding
On October 18, 2016 the City issued $3,540,000 General Obligation Tax Increment Revenue Refunding Bonds, Series 2016D to refinance the 2009 HRA Tax Increment Bonds. The refunded bonds were called on February 1, 2017.
General Obligation Bonds
On June 20, 2017 the City issued $11,795,000 General Obligation Street Reconstruction Bonds series 2017A for street reconstruction projects and $3,170,000 General Obligation Bonds series 2017B for park projects and various utility system improvements.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Governmental activities 0.35 – 4.00% 31,110,000 $ 29,565,000
Governmental activities – refunding 0.50 – 4.80% 26,030,000 20,990,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2018 $ 3,270,000 $ 1,355,478
2019 3,880,000 1,244,399
2020 3,995,000 1,142,633
2021 4,120,000 1,036,320
2022 3,935,000 933,171
2023-2027 16,590,000 3,285,434
2028-2032 12,925,000 1,099,266
2033-2036 1,840,000 63,670
$ 50,555,000 $ 10,160,371
64
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City,
and repayment monies are generated by the collection of special assessments and general levies.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Street Improvements 0.50 – 3.125% 9,810,000 $ 7,465,000
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2018 $ 620,000 $ 171,428
2019 635,000 158,646
2020 645,000 145,188
2021 660,000 130,460
2022 645,000 114,840
2023-2027 3,285,000 326,598
2028-2030 975,000 30,616
$ 7,465,000 $ 1,077,776
Revenue Bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service.
Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Original Amount Current Amount
Water construction & replacement 2.0 – 4.0% 820,000 485,000
Water construction & replacement 2.0 – 2.2% 760,000 550,000
Water construction & replacement 2.0 - 2.5% 860,000 710,000
Water construction & replacement 2.0% 930,000 930,000
Water construction & replacement 3.0 - 4.0% 272,650 272,650
Sanitary sewer construction & replacement 2.0 – 4.0% 1,020,000 600,000
Sanitary sewer construction & replacement 2.0 – 2.2% 170,000 120,000
Sanitary sewer construction & replacement 2.0 - 2.5% 490,000 400,000
Sanitary sewer construction & replacement 3.0 - 4.0% 1,119,300 1,119,300
Storm sewer – refunding 0.5 – 2.9% 875,000 470,000
Storm sewer construction & replacement 2.0 – 2.2% 320,000 230,000
Storm sewer construction & replacement 2.0 - 2.5% 380,000 315,000
Storm sewer construction & replacement 3.0 - 4.0% 43,050 43,050
Pavilion equipment certificates 2.0 – 2.0% 175,000 100,000
65
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2018 $ 450,000 $ 174,086
2019 535,000 158,913
2020 545,000 144,201
2021 565,000 128,511
2022 570,000 112,281
2023-2027 2,355,000 335,974
2028-2032 1,205,000 85,258
2033 120,000 1,800
$ 6,345,000 $ 1,141,024
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2017, the debt limit for the City is $54,887,875. Of the total debt, $26,270,000 of general obligation
and revenue bonds is applicable to the limit. The legal debt margin is $28,617,875.
Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2017, was as follows:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds $ 17,375,000 $$ 980,000 $ 16,395,000 $ 1,210,000
General obligation bonds 22,130,000 13,530,000 1,500,000 34,160,000 2,060,000
Total general obligation bonds 39,505,000 13,530,000 2,480,000 50,555,000 3,270,000
Special assessment bonds 8,065,000 - 600,000 7,465,000 620,000
Less deferred amounts
For issuance discounts (41,741)- 6,687 (35,054) -
For issuance premiums 1,088,715 1,352,173 132,158 2,308,730 -
Total bonds payable 48,616,974 14,882,173 3,218,845 60,293,676 3,890,000
Compensated absences 778,154 1,141,635 1,084,840 834,949
Capital lease payable 102,128 - 49,453 52,675
Governmental activity
long-term liabilities $ 49,497,256 $ 16,023,808 $ 4,353,138 $ 61,181,300 $ 3,890,000
Business-type activities:
Bonds payable:
Revenue bonds $ 5,295,000 $ 1,435,000 $ 385,000 $ 6,345,000 $ 450,000
Less deferred amounts
For issuance discounts (4,359)- 717 (3,642) -
For issuance premiums 61,620 107,988 10,676 158,932 -
Total bonds payable 5,352,261 1,542,988 396,393 6,500,290 450,000
Compensated absences 98,097 80,229 96,283 82,043
Business-type activity
long-term liabilities $ 5,450,358 $ 1,623,217 $ 492,676 $ 6,582,333 $ 450,000
For the governmental activities, compensated absences liability is generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue funds.
For the governmental activities, the OPEB and pension liabilities are generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue funds.
66
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
10. FUND BALANCES
At December 31, 2017, the City had various fund balances through legal restriction and City Council
authorization. Major fund balance appropriations at December 31, 2017 are shown on the various balance sheets
as segregations of the fund balance. The fund balances are as follows:
Total Nonspendable Restricted Committed Assigned Unassigned
General Fund $ 5,471,420 $ - $- $- $- $ 5,471,420
Inventories 91,850 91,850 - - - -
Prepaids 43,523 43,523 - - - -
Community development 245,494 - - - 245,494 -
Total General Fund 5,852,287 135,373 - - 245,494 5,471,420
Economic Development
Economic Development 4,458,674 - - 4,458,674 - -
Total Economic Development Fund 4,458,674 - - 4,458,674 - -
Arts Center
Deficit Fund Balance (1,180,412) - - - - (1,180,412)
Total Arts Center Fund (1,180,412)---- (1,180,412)
Tax Increment District Super Valu
Property held for resale 321,719 - 321,719 - - -
Tax Increment 5,258,098 - 5,258,098 - - -
Total Tax Increment District
Super Valu 5,579,817 - 5,579,817 - - -
Permanent Improvement Revolving
Capital asset replacement 1,655,606 - - - 1,655,606 -
Nonmajor Governmental Funds
Pavilion Addition 1,162,891 1,162,891 - - - -
Rehab loans 32,222 - 32,222 - - -
Debt service 5,819,203 - 5,819,203 - - -
Tax increment 609,505 - 609,505 - - -
Park improvements 1,088,355 - 1,088,355 - - -
Parking improvements 137,219 - - 137,219 - -
Communications 561,938 - - 561,938 - -
Race and Equity Initiative 3,091 - - 3,091 - -
Deficit fund balance (1,537,634)- - - - (1,537,634)
Total Nonmajor Funds 7,876,790 1,162,891 7,549,285 702,248 - (1,537,634)
Total Fund Balances $ 24,242,762 $ 1,298,264 $ 13,129,102 $ 5,160,922 $ 1,901,100 $ 2,753,374
67
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
11. PENSION PLAN OBLIGATIONS
1. Defined Benefit Pension Plans - Statewide
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are
established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined
benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code.
1.General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the General Employees Retirement
Fund (GERF). GERF 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. The Basic Plan was closed to new
members in 1967. All new members must participate in the Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now
covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police
officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and
administration to PERA.
Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can
only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan.
Members in plans that are at least 90 percent funded for two consecutive years are given 2.5% increases. Members in
plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases.
The benefit provisions stated in the following 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.
1. GERF Benefits
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 PERA'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% of average
salary for each of the first ten years of service and 2.7% 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 ten years and 1.7% for each remaining
year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for
Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available
when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989,
normal retirement age is the age for unreduced Social Security benefits capped at 66.
68
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
2.PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from
50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June
30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The
annuity accrual rate is 3% of average salary for each year of service. For PEPFF who were first hired prior to July 1,
1989, a full annuity is available when age plus years of service equal at least 90.
B.Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
1.GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their
annual covered salary in calendar year 2017. The City was required to contribute 11.78% of pay for Basic Plan
members and 7.50% for Coordinated Plan members in calendar year 2017. The City’s contributions to the GERF for
the year ended December 31, 2017, were $392,183. The City’s contributions were equal to the required contributions
as set by state statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2017. The City was
required to contribute 16.20% of pay for PEPFF members in calendar year 2017. The City’s contributions to the
PEPFF for the year ended December 31, 2017, were $458,715. The City’s contributions were equal to the required
contributions as set by state statute.
C.Pension Costs
1.GERF Pension Costs
At December 31, 2017, the City reported a liability of $5,145,451 for its proportionate share of the GERF’s net pension
liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16
million to the fund in 2017. The State of Minnesota is considered a non-employer contributing entity and the
state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of
the net pension liability associated with the City totaled $64,662. The net pension liability was measured as of June 30,
2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by
PERA during the measurement period for employer payroll paid dates from July 1, 2016, through June 30, 2017,
relative to the total employer contributions received from all of PERA’s participating employers. At June 30,
2017, the City’s proportion was .0806%, which was a decrease of .0027% from its proportion measured as of June 30,
2016.
For the year ended December 31, 2017, the City recognized pension expense of $669,062 for its proportionate share of
the GERF’s pension expense. In addition, the City recognized an additional $12,896 as pension expense for its
proportionate share of the state of Minnesota's contribution of $16 million to the GERF during the 2017 calendar year.
69
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
At December 31, 2017, the City reported its proportionate share of the GERF’s deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual economic
experience
$ 169,579 $ 331,020
Changes of assumptions 854,256 515,832
Net difference between projected and actual earnings on
pension plan investments
33,233 -
Changes in proportion and differences between city
contributions and proportionate share of contributions
4,952 182,489
City contributions subsequent to the measurement date 192,537 -
Total $ 1,254,557 $ 1,029,341
A total of $192,537 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year Ended June 30
2018 $ 124,173
2019 262,486
2020 (135,565)
2021 (218,415)
2122 -
Thereafter -
2. PEPFF Pension Costs
At December 31, 2017, the City reported a liability of $3,780,330 for its proportionate share of the PEPFF’s net
pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of
the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2016, through June 30, 2017, relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2017, the City’s proportion was .280%, which was
consistent with its proportion measured as of June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of $954,548 for its proportionate share of
the PEPFF’s pension expense. The City also recognized $25,200 for the year ended December 31, 2017, as pension
expense (and grant revenue) for its proportionate share of the State of Minnesota’s on-behalf contributions to the
PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF
each year, starting in fiscal year 2014.
70
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
At December 31, 2017, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual economic
experience
$ 87,015 $ 1,010,630
Changes of assumptions 4,947,320 5,367,136
Net difference between projected and actual earnings on
pension plan investments
51,920 -
Changes in proportion and differences between city
contributions and proportionate share of contributions
82,318 5,400
City contributions subsequent to the measurement date 239,796 -
Total $ 5,408,369 $ 6,383,166
A total of $239,796 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Year Ended June 30
2018 $ 84,594
2019 84,594
2020 (53,985)
2021 (273,772)
2022 (1,056,024)
Thereafter -
D. Actuarial Assumptions
The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial
assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's
experience. Cost of living benefit increases for retirees are assumed to be one percent per year for GERF through
2044 and PEPFF through 2064 and then 2.5% thereafter for both plans.
Actuarial assumptions used in the June 30, 2017, valuation were based on the results of actuarial experience studies.
The most recent four-year experience study in the General Employees Plan was completed in 2015. The experience
study for Police and Fire Plan was completed in 2016.
71
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
The following changes in actuarial assumptions occurred in 2017:
GERF
The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested
and nonvested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for
vested deferred member liability, and 3.0% for nonvested deferred member liability.
The assumed postretirement benefit increase rate was changed form 1.0% per year for all years to 1.0% per year
through 2044 and 2.5% per year thereafter.
Police and Fire Fund
Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect
is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30% for vested and nonvested deferred members. The CSA has
been changed to 33% for vested members and 2% for nonvested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The
mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for
disabled annuitants was changed from RP-2000 disabled mortality table to the mortality tables assumed for
healthy retirees.
Assumed termination rates were decreased to 3.0% for the first three years of service. Rates beyond the select
period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumption for male members (wives assumed to be three
years younger) and female members (husbands assumed to be four years older) to the assumption that males are
two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed postretirement benefit increase rate was changed from 1.00% for all years to 1.00% per year
through 2064 and 2.50% thereafter.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness
on a regular basis of the long-term expected rate of return on a regular basis using a building-block method in which
best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are
combined to produce an expected long-term rate of return by weighting the expected future rates of return by the
target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each
major asset class are summarized in the following table:
Asset Class Target Allocation Long-Term Expected Real
Rate of Return
Domestic Stocks 39%5.10%
International Stocks 19%5.30%
Bonds 20%0.75%
Alternative Assets 20%5.90%
Cash 2%0.00%
Total 100%
72
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
E.Discount Rate
The discount rate used to measure the total pension liability in 2017 was 7.5%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members and employers will be made at rates set in
Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund was
projected to be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments
to determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members through June 30, 2056 and June 30, 2058 respectively. Beginning in fiscal
years ended June 30, 2057 for the Police and Fire Fund, when projected benefit payments exceed the funds’ projected
fiduciary net position, benefit payments were discounted at the municipal bond rate of 2.85% based on an index of
20-year general obligation bonds with an average AA credit rating at the measurement date. An equivalent single
discount rate of 5.60% for the Police and Fire Fund was determined that produced approximately the same present
value of projected benefits when applied to all years of projected benefits as the present value of projected benefits
using 7.50% applied to all years of projected benefits through the point of asset depletion and 2.85% after.
F.Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in,
calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share
of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one
percentage point higher than the current discount rate:
Sensitivity of Net Pension Liability at Current Single Discount Rate
General Employees Fund Police and Fire Fund
1% Lower 6.5% $ 7,980,977 6.5% $ 7,119,470
Current Discount Rate 7.5% $ 5,145,451 7.5% $ 3,780,333
1% Higher 8.5% $ 2,824,058 8.5% $ 1,023,691
G. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA
financial report that includes financial statements and required supplementary information. That report may be
obtained on the Internet at www.mnpera.org.
73
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
2. Hopkins Fire Relief Association (HFRA)
A. Plan Description
Firefighters of the City of Hopkins are members of the Hopkins Fire Department Relief Association. The
Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The
plan was established in 1909 and is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and
the Association’s by-laws. It is governed by a Board of Trustees made up of six members elected by the members
of the Association for three year terms, and the Mayor, City Clerk and Fire Chief, who serve as ex-officio voting
members of the Board of Trustees. As of December 31, 2016, membership includes 34 active participants and 13
vested terminated employees entitled to benefit but not yet receiving them
The Association issues a publically available financial report that includes financial statements and required
supplementary information of the Hopkins Fire Relief Association. That report may be obtained by writing to the
Hopkins Fire Relief Association, 1010 First St S, Hopkins, MN 55343.
For financial reporting purposes, the Association’s financial statements are not included with the City financial
statements because the Association is not a component unit of the City. The Association does not have any
component units.
B. Benefits Provided
The Association operates under a defined benefit plan. The pension liability is calculated by the number of active
service years multiplied by a set benefit level. The Association’s current level is at $6,100 per active year. According
to the bylaws of the Association and pursuant to Minnesota statute 424A.02, subdivisions 2 and 4, members who retire
with less than 20 years of service and have reached the age of 50 years and have completed at least ten years of active
membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member’s
service pension for the completed years of service times the applicable non-forfeitable percentage of pension. The
defined retirement benefits are based on members’ years of service. Vesting begins after the 10th year of service with a
60% benefit increasing by 4% per year to 100% after the 20th year of service.
If a member of the Association shall become totally and permanently disabled, with a service related disability (injured
in the line of duty) to the extent that a physician or surgeon acceptable to the Board shall certify that such disability
will permanently prevent said member from performing said member’s duties in the Department, the Association shall
pay to such member the sum of the current pension amount for each year and fractions of a year that the member has
served as an active member of the Department, without regard to minimum or partial vesting requirements. If a
member who has received such a disability pension should subsequently recover and return to active duty in the
Department, any amount paid to said member as a disability pension shall be deducted from said member’s service
pension.
Upon the death of any member of the Association who is in good standing at the time of said member’s death, the
Association shall pay to the surviving spouse, if any, and if there is no surviving spouse, to child or children, if any,
and if no child or children survive, to the estate of such deceased member, the credited sum of said member’s pension.
74
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
C. Contributions
Minnesota Statues Chapter 424A.093 specifies minimum support rates required on an annual basis. The significant
actuarial assumptions used to compute the municipal support are the same as those used to compute the accrued
pension liability. The association is comprised of volunteers; therefore, there are no payroll expenditures (i.e. there are
no covered payroll percentage calculations). The minimum contribution from the City of Hopkins and state aid is
determined as follows:
The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to
the City $101,547 in fire state aid and $3,000 in supplemental benefit reimbursements paid by the City to the Relief
Association for the year ended December 31, 2016. Required employer contributions are calculated annually based
on statutory provisions. The City’s statutorily-required contribution to the plan for the year ended December 31, 2016
was $37,000.
The City used December 31, 2016 amounts since December 31, 2017 were not available yet.
D. Pension Costs
At December 31, 2017, the City reported an asset of $475,518 for the Association’s net pension asset. The net pension
asset was measured as of December 31, 2016, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of that date.
As a result of its requirement to contribute to the Relief Association, the City reduced expense by $206,099 for the
year ended December 31, 2017. At December 31, 2017, the City reported deferred outflows of resources and deferred
inflows of resources from the following sources:
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual economic
experience
$- $ 229,343
Changes of assumptions 73,105
Net difference between projected and actual earnings on
pension plan investments
266,831 -
City contributions subsequent to the measurement date 37,000 -
Total $ 376,936 $ 229,343
75
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
The City contributions to the Association subsequent to the measurement date of 37,000, reported as deferred
outflows of resources, will be recognized as a reduction of the net pension liability in the year ended December 31,
2018. Other amounts reported as deferred outflows and inflows of resources related to the Association’s pension will
be recognized in pension expense as follows:
Year Ended December 31
Pension
Expense
Amount
2018 $ 73,969
2019 73,969
2020 48,399
2021 (18,784)
2022 (22,320)
Thereafter (44,640)
E.Actuarial Assumptions
The actuarial total pension liability was determined as of December 31, 2017, using the following actuarial
assumptions, applied to all periods included in the measurement:
ASSUMPTIONS FROM ACTUARIAL REPORT
Valuation Date
Acruarial Cost Method
Amortization Method
Actuarial Assumptions:
Discount Rate
Investment Rate of Return
20-Year Municipal Bond Yield
Age of Service Retirement
Mortality
Disability
Withdraway
Percent Married
Age Difference
Form of Payment
12/31/2016
Entry Age Normal
Level Dollar Closed
6.25%
6.25%
4.00%
Age 50
N/A
None
None
N/A
N/A
Lump Sum
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class. These asset class estimates are combined to produce the
portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the
expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by
adding expected inflation.
76
&LW\RI+RSNLQV0LQQHVRWD
127(672),1$1&,$/67$7(0(176 &217
'HFHPEHU
7KHEHVWHVWLPDWHRIH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQZHUHGHYHORSHGE\DJJUHJDWLQJGDWDIURPVHYHUDOSXEOLVKHG
FDSLWDOPDUNHWDVVXPSWLRQVXUYH\VDQGGHULYLQJDVLQJOHEHVWHVWLPDWHEDVHGRQWKHDYHUDJHVXUYH\YDOXHV7KHVH
FDSLWDOPDUNHWDVVXPSWLRQVUHIOHFWERWKKLVWRULFDOPDUNHWH[SHULHQFHDVZHOODVGLYHUVHYLHZVUHJDUGLQJDQWLFLSDWHG
IXWXUHUHWXUQV7KHH[SHFWHGLQIODWLRQDVVXPSWLRQZDVGHYHORSHGEDVHGRQDQDQDO\VLVRIKLVWRULFDOH[SHULHQFHEOHQGHG
ZLWKIRUZDUGORRNLQJH[SHFWDWLRQVDYDLODEOHLQPDUNHWGDWD
%HVWHVWLPDWHVRIJHRPHWULFUHDODQGQRPLQDOUDWHVRIUHWXUQIRUHDFKPDMRUDVVHWFODVVLQFOXGHGLQWKHSHQVLRQSODQ
V
DVVHWDOORFDWLRQDVRI'HFHPEHUDUHVXPPDUL]HGLQWKHIROORZLQJWDEOH
$OORFDWLRQDW /RQJ7HUP
'HFHPEHU ([SHFWHG ([SHFWHG1RPLQDO
$VVHW&ODVV 3RUWIROLR:HLJKW 5DWHRI5HWXUQ
&DVK
)L[HG,QFRPH
'RPHVWLF(TXLW\
,QWHUQDWLRQDO(TXLW\
7RWDO3RUWIROLR
) 'LVFRXQW5DWH
7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDOSHQVLRQOLDELOLW\ZDV$VVHWVZHUHSURMHFWHGXVLQJH[SHFWHGEHQHILW
SD\PHQWVDQGH[SHFWHGDVVHWUHWXUQV([SHFWHGEHQHILWSD\PHQWVZHUHGLVFRXQWHGE\\HDUXVLQJH[SHFWHGDVVHWVUHWXUQ
DVVXPSWLRQIRU\HDUVLQZKLFKWKHDVVHWVZHUHVXIILFLHQWWRSD\DOOEHQHILWSD\PHQWV$Q\UHPDLQLQJEHQHILWSD\PHQWV
DIWHUWKHWUXVWIXQGLVH[KDXVWHGDUHGLVFRXQWHGDWWKHPXQLFLSDOERQGUDWHRIUHWXUQ7KHHTXLYDOHQWVLQJOHUDWHLVWKH
GLVFRXQWUDWH%DVHGRQWKRVHDVVXPSWLRQVWKHSHQVLRQSODQ
VILGXFLDU\QHWSRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWR
PDNHDOOSURMHFWHGIXWXUHEHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUV
* 3HQVLRQ/LDELOLW\6HQVLWLYLW\
7KH IROORZLQJ SUHVHQWV WKH &LW\ RI +RSNLQV SURSRUWLRQDWH VKDUHRIWKHQHWSHQVLRQOLDELOLW\RIWKH$VVRFLDWLRQ
FDOFXODWHGXVLQJWKHGLVFRXQWUDWHRIDVZHOODVZKDWWKH$VVRFLDWLRQ¶VQHWSHQVLRQOLDELOLW\ZRXOGEHLILWZHUH
FDOFXODWHGXVLQJDGLVFRXQWUDWHWKDWLVRQHSHUFHQWDJHSRLQWORZHU RURQHSHUFHQWDJHSRLQWKLJKHU
WKDQWKHFXUUHQWUDWH
6HOHFWHG
1HW3HQVLRQ/LDELOLW\ $VVHW 'HFUHDVH 'LVFRXQW5DWH ,QFUHDVH
'LVFRXQW5DWH
77
&LW\RI+RSNLQV0LQQHVRWD
127(672),1$1&,$/67$7(0(176 &217
'HFHPEHU
+ 3ODQ¶V)LGXFLDU\1HW3RVLWLRQ
'HWDLOHGLQIRUPDWLRQDERXWWKH3ODQ¶VILGXFLDU\¶VQHWSRVLWLRQLVDYDLODEOHLQDVHSDUDWHO\LVVXHGUHSRUW7KDWUHSRUW
PD\EHREWDLQHGE\ZULWLQJWRWKH+RSNLQV)LUH5HOLHI$VVRFLDWLRQ)LUVW6W6+RSNLQV01
,QIRUPDWLRQDERXWWKHFKDQJHVLQWKH3ODQ
VQHWSHQVLRQOLDELOLW\ DVVHW LVDVIROORZV
7RWDO3HQVLRQ$VVHW
6HUYLFHFRVW
,QWHUHVW
'LIIHUHQFHV%HWZHHQ([SHFWHGDQG$FWXDO([SHULHQFH
&KDQJHVRI$VVXPSWLRQV
3ODQ&KDQJHV
%HQHILW3D\PHQWV
1HW&KDQJHLQ7RWDO3HQVLRQ/LDELOLW\
7RWDO3HQVLRQ/LDELOLW\%HJLQQLQJ
7RWDO3HQVLRQ/LDELOLW\(QGLQJ D
3ODQ)LGXFLDU\1HW3RVLWLRQ
0XQLFLSDO&RQWULEXWLRQV
6WDWH&RQWULEXWLRQV
1HW,QYHVWPHQW,QFRPH
%HQHILW3D\PHQWV
$GPLQLVWUDWLYH([SHQVHV
1HW&KDQJHLQ)LGXFLDU\1HW3RVLWLRQ
)LGXFLDU\1HW3RVLWLRQV%HJLQQLQJ
)LGXFLDU\1HW3RVLWLRQ(QGLQJ E
$VVRFLDWLRQ
V1HW3HQVLRQ/LDELOLW\ $VVHW (QGLQJ D E
)LGXFLDU\1HW3RVLWLRQDVD3HUFHQWDJHRIWKH7RWDO3HQVLRQ/LDELOLW\
&RYHUHG(PSOR\HH3D\UROO 1$ 1$
1HW3HQVLRQ/LDELOLW\ $VVHW DV3HUFHQWDJHRI&RYHUHG3D\UROO 1$ 1$
78
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
12.OTHER POST EMPLOYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City
engaged an actuary to determine the City’s liability for postemployment healthcare benefits other than pensions as of
January 1, 2016, for this single employer defined benefit OPEB plan.
1.Plan Description
The City, a single-employer postemployment benefit plan, provides benefits for retirees as required by Minnesota
Statute §471.61 subdivision 2b. Active 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.
Employees retiring by June 30, 2007 will receive full single health and life insurance coverage until age 65;
employees retiring between July 1, 2007 and December 31, 2009 will receive $500 per month towards the cost of
single health and life insurance until age 65; and employees retiring after December 31, 2009 will receive $15 per
month times years of service (maximum of $500 per month) towards the cost of single health and life insurance until
age 65. Currently 16 employees meet those eligibility requirements. As of January 1, 2016 there were
approximately 92 active participants and 14 retired participants receiving benefits from the City’s health plans.
2.Funding Policy
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2017, the City contributed $201,014 to
the plan. The City's OPEB pension obligation is funded by the General and Enterprise Funds.
3. Annual OPEB Cost and Net OPEB Obligation
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year
and amortize any un-funded actuarial liabilities over a period not to exceed thirty years. The following table shows
the components of the City’s annual OPEB cost for the year, the amount actually paid from the plan, and changes in
the City’s net OPEB obligation.
Annual Required Contribution $ 162,039
Interest on Net OPEB Obligation 4,221
Adjustment to Annual Required Contribution (6,447)
Annual OPEB Cost (Expense) 159,813
Contributions Made (201,014)
Increase in Net OPEB Obligation (41,201)
Net OPEB Obligation - Beginning of Year 120,622
Net OPEB Obligation - End of Year $ 79,421
79
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
The City’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2017:
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEB Cost OPEB
Ended Cost Contributed Obligation
12/31/2014 $ 200,416 103.2 % $ 222,653
12/31/2015 201,164 121.9 % 178,639
12/31/2016 158,744 136.5 % 120,622
12/31/2017 159,813 125.8 % 79,421
4. Funded Status and Funding Progress
As of January 1, 2016, the most recent actuarial valuation date, the City’s unfunded actuarial accrued liability
(UAAL) was $1,534,346. The annual payroll for active employees covered by the plan in the actuarial valuation was
$8,171,262 for a ratio of UAAL to covered payroll of 18.78%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
5. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
In the January 1, 2016 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial
assumptions included a 3.5% investment rate of return (net of administrative expenses), which is a blended rate of the
expected long-term investment returns on plan assets and on the employer’s own investments calculated based on the
funded level of the plan at the valuation date. The initial healthcare trend rate was 6.75%, reduced by decrements to
an ultimate rate of 5% after six years. Both rates include a 2.5% inflation assumption. The UAAL is being
amortized over 30 years (2016 - 2047) as a level percentage of projected payrolls on an closed basis.
8380
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
13. REHABILITATION LOANS RECEIVABLE
The City makes rehabilitation loans to residential and commercial entities within the City. Residential loans are
made for 20 year periods at 3% interest. A mortgage against the property improved is required and City staff is
responsible to follow-up any delinquent accounts. Loan repayments are made to Matrix Financial Services, a loan
service bureau, which charges a fee of $5.95 per month per loan. Principal and interest are forwarded to the City
monthly with loan collection and loan status reports. Rehabilitation loan activity is a function of the Economic
Development Fund, and the Hennepin County CDBG Funds. Loans become due in full upon sale of property.
Rehabilitation loans receivable amounted to $ 32,222 at December 31, 2017 and are recorded in the Hennepin
County CDBG non-major special revenue funds.
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 $1,000,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
15. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City participates in a public entity risk pool to mitigate
its exposure to these risks. Workers compensation and property and liability coverage are provided through a pooled
self-insurance plan with other cities. Settled claims have not exceeded insurance coverage in any of the past three
fiscal years and no significant reductions in coverage from the prior year. The City pays an annual premium based on
prior claims history for its workers compensation coverage. The public entity risk pool is responsible for the
payment of all associated claims. The City has a $20,000 deductible per occurrence with a maximum per year out of
pocket of $40,000, for its property and liability coverage. The public entity risk pool is responsible for all losses in
excess of $20,000 per occurrence and all losses occurring after the $40,000 maximum City out of pocket costs.
16. TAX ABATEMENTS
The City enters into property tax abatement agreements through the use of tax increment financing districts with
local businesses under various Minnesota Statutes. Under these statutes the City annually abates taxes collected
above the districts' base tax capacity which is established during adoption of the tax increment district. These
agreements are established to foster economic development and redevelopment through creating jobs, removing
blight and providing affordable housing. The City uses Minnesota Statutes 469.001 to 469.047 and 469.174 to
469.179 (The Tax Increment Act) to create these districts.
For the year ended December 31, 2017, the City has five agreements established under Minnesota Statute 469.174 to
469.179 (The Tax Increment Act) which resulted in property taxes totaling $2,146,730 beiing abated. The
following agreement exceeded 10 percent of the total amount abated.
A pay as you go note to convert substandard property into an office complex. The abatement amounted to
$1,921,687.
81
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2017
17. PRIOR PERIOD ADJUSTMENT
During 2017, corrections to the prior year financial statements were made to correct the over accrual of expenditure
and the related payable in the Permanent Improvement Revolving Fund and misclassification of bonds payable
between governmental and business-type activities.
Net Position Net Position Fund Balance
Governmental
Activities
Business-Type
Activities
Permanent
Improvement
Revolving
Balance - January, as previously stated 34,098,004 22,233,618 (639,073)
Prior period adjustment for expenditure 1,458,347 - 1,458,347
Prior period adjustment for bonds payable 930,000 (930,000) -
Total Prior period adjustments 2,388,347 (930,000) 1,458,347
Balance - January 1, as restated 36,486,351 21,303,618 819,274
18. SUBSEQUENT EVENT
At the March 20, 2018 meeting, the City Council approved issuance and sale of $6,645,000 General Obligation
Bonds, Series 2018A and $3,355,000 General Obligation Tax Abatement Bonds, Series 2018B. Proceeds from the
2018A bonds will be used for the City’s 2018 road construction and Blake road reconstruction projects and proceeds
from the 2018B bonds will be used for Pavilion upgrades. Both issuances were offered for sale on May 1st, 2018.
82
REQUIRED SUPPLEMENTARY
INFORMATION
83
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
1. OTHER POSTEMPLOYMENT BENEFITS PLAN
Schedule of Funding Progress:
Actuarial UAAL as a
Actuarial Accrued Percentage
Actuarial Value of Liability Unfunded Funded Covered of Covered
Valuation Assets (AAL)AAL Ratio Payroll Payroll
Date (a)(b)(b-a)(a/b)(c)((b-a)/c)
01/01/07 $ - $ 2,297,909 $ 2,297,909 - $ 5,621,587 41 %
01/01/10 - 2,145,617 2,145,617 - 6,244,081 34 %
01/01/13 - 2,029,907 2,029,907 - 6,583,173 31 %
01/01/16 - 1,534,346 1,534,346 - 8,171,262 19 %
2. SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
PERA - General Employees Retirement Fund
Fiscal
Year
Ending
Employer's
Proportionate
(Percentage)
of the
Net Pension
Employer's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
(a)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
of Hopkins
(b)
Employer's
Proportionate
Share of the
Net Pension
Liabiltiy and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City of
Hopkins
(a+b)
Employer's
Covered
Payroll**
(c)
Employer's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
((a+b)/c)
Plan
Fiduciary
Net Position
as a
Percentage
of the Total
Pension
Coverage
June 30, 2015 0.0831% $ 4,306,673 $ - $ 4,306,673 $ 4,802,000 89.68% 78.20%
June 30, 2016 0.0833% 6,763,547 88,334 6,851,881 5,015,680 134.85% 68.90%
June 30, 2017 0.0806% 5,145,451 64,662 5,210,113 5,189,400 99.15% 75.90%
84
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
PERA - Public Employees Police and Fire Fund
Fiscal
Year
Ending
Employer's
Proportionate
(Percentage) of
the
Net Pension
Employer's
Proportionate
Share
(Amount) of
the Net Pension
Liability
(Asset)
(a)
Employer's
Covered
Payroll** (b)
Employer's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll (a/b)
Plan Fiduciary
Net Position
as a Percentage
of the Total
Pension
Coverage
June 30, 2015 0.2690% $ 3,056,469 $ 2,540,691 120.30% 86.60%
June 30, 2016 0.2800% 11,236,887 2,744,827 409.38% 63.90%
June 30, 2017 0.2800% 3,780,333 2,879,284 131.29% 85.40%
Notes to schedules
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for
the year ending December 31, 2015. The schedules within the Required Supplementary Information Section
required a ten year presentation, but does not require retroactive reporting. Information prior to 2015 is not
available.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
3. SCHEDULES OF THE CITY'S CONTRIBUTIONS
PERA - General Employees Retirement Fund
Fiscal
Year
Ending
Statutorily
Required
Contributions
(a)
Contributions
in Relation to
the Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered
Payroll **
(d)
Contributions as a
Percentage of
Covered Payroll
(b/d)
December 31, 2015 $ 360,150 $(360,150)- $ 4,802,000 7.50%
December 31, 2016 376,176 (376,176)- 5,015,680 7.50%
December 31, 2017 392,183 (392,183)- 5,229,107 7.50%
85
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
PERA - Public Employees Police and Fire Fund
Fiscal
Year
Ending
Statutorily
Required
Contributions
(a)
Contributions
in Relation to
the Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered
Payroll **
(d)
Contributions as a
Percentage of
Covered Payroll
(b/d)
December 31, 2015 $ 411,592 $(411,592)- $ 2,540,691 16.20%
December 31, 2016 444,662 (444,662)- 2,744,827 16.20%
December 31, 2017 458,715 (458,715)- 2,831,574 16.20%
Notes to schedules
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for
the year ending December 31, 2015. The schedules within the Required Supplementary Information Section
required a ten year presentation, but does not require retroactive reporting. Information prior to 2015 is not
available.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
4. SCHEDULE OF THE CITY'S CONTRIBUTION TO THE HOPKINS FIRE RELIEF FUND
Last Ten Years
Fiscal
Year
Ending
December 31
Actuarially
determined
contribution(a)
Contributions in
Relation to the
Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
2017 $ 30,838 $ (37,000) $ (6,162)
2016 15,884 (32,463) (16,579)
2015 -(32,166) (32,166)
2014 36,889 (36,889) -
2013 21,427 (32,166) (10,739)
2012 -(32,166) (32,166)
2011 -(32,166) (32,166)
2010 117,582 (117,582) -
2009 104,409 (104,409) -
2008 -(32,166) (32,166)
86
CITY OF HOPKINS, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS STATEMENTS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. Expenditures are restricted by law or administrative regulation for
specified purposes.
State Chemical Assessment Fund – This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Hennepin County CDBG - This fund accounts for receipt for Community Development Block
Grant funds and the issuance of loans and grants for housing rehabilitation.
Parking Fund - This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
Communications Fund - This fund records the City's share of a five-city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission.
Hopkins Race & Equity Initiative - This fund was established to account for the activity of a
colloborative effort of the City and two outside organizations centered on race equity.
Depot Coffee House Fund – This fund accounts for the operations of the coffee house
business and the teen center operations that are supported through grant funds.
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.
5th Avenue Flats Fund - This fund was established to account for the project costs of the 5th
Avenue Flats project. Originally shown as a tax increment fund the project changed scope and
is no longer in a tax increment district.
87
DEBT SERVICE FUNDS
Debt Service Funds are established to finance and account for the payment of interest
and principal on all general obligation debt other than debt issued for and serviced by a
governmental enterprise. Provisions are made in the City's general property tax levy for
money sufficient to meet the general obligation debt.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature. (Special revenue and enterprise fund
resources are not included in this category.) These funds evolve from the needs for
special accounting for bond proceeds, grants and contributions for the acquisition of
capital assets.
Park Improvements Fund - This fund was established to record construction and
improvement costs for park facilities.
Capital Improvement Fund - This fund accounts for funds set aside for the
construction and improvement of City facility and infrastructure.
Municipal State Aid Fund - This fund is used to account for the City's allocation of the
state collected highway user tax. This allocation is based on population and need for
construction of designated state aid streets in the City.
Street Improvement Franchise Fees Fund - This fund accounts for funds set aside
for street improvements from the 2012 increase in gas and electric franchise fees.
Funds will be used to decrease the annual debt levy for street improvement bonds.
88
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications
Hopkins Race &
Equity Initiative
Assets
Cash and cash equivalents $- $- $ 202,164 $ 498,671 $ 3,094
Accounts receivable ---68,692 -
Rehabilitation loans receivable -32,222 ---
Due from other governments --1,569 --
Interest receivable --516 805 -
Total Assets $-$32,222 $204,249 $568,168 $3,094
Liabilities and Fund Balances
Liabilities:
Accounts payable $- $- $ 1,014 $ 4,261 $3
Salaries payable 761 -1,622 1,969 -
Due to other funds 22,237 ----
Due to other governments --105 --
Unearned revenue --64,289 --
Total Liabilities 22,998 -67,030 6,230 3
Fund balances:
Restricted -32,222 --3,091
Committed --137,219 561,938 -
Unassigned (22,998)----
Total Fund Balances (22,998)32,222 137,219 561,938 3,091
Total Liabilities and Fund Balances $-$32,222 $204,249 $568,168 $3,094
89
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Special Revenue Funds
Depot
Coffee
House
Tax
Increment
District
Entertainment
District
Tax
Increment
District
Sonoma
Tax
Increment
District
Oaks of
Mainstreet 5th Ave Flats
Assets
Cash and cash equivalents $- $ 239,152 $ 4,520 $ 561,950 $-
Accounts receivable 959 ----
Rehabilitation loans receivable -----
Due from other governments -----
Interest receivable -371 19 1,167 -
Total Assets $959 $239,523 $4,539 $563,117 $-
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 4,505 $249 $13 $585 $-
Salaries payable 3,607 ----
Due to other funds 22,734 192,301 72,396 -391,831
Due to other governments 1,401 ----
Unearned revenue -----
Total Liabilities 32,247 192,550 72,409 585 391,831
Fund balances:
Restricted -46,973 -562,532 -
Committed -----
Unassigned (31,288)-(67,870)-(391,831)
Total Fund Balances (31,288)46,973 (67,870)562,532 (391,831)
Total Liabilities and Fund Balances $959 $239,523 $4,539 $563,117 $-
90
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Special Revenue
Funds
Tax
Increment
District
Markeplace
& Main Total
Assets
Cash and cash equivalents $ 170,153 $ 1,679,704
Accounts receivable -69,651
Rehabilitation loans receivable -32,222
Due from other governments -1,569
Interest receivable 96 2,974
Total Assets $170,249 $1,786,120
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 169,471 $ 180,101
Salaries payable -7,959
Due to other funds 210,000 911,499
Due to other governments -1,506
Unearned revenue -64,289
Total Liabilities 379,471 1,165,354
Fund balances:
Restricted -644,818
Committed -699,157
Unassigned (209,222) (723,209)
Total Fund Balances (209,222)620,766
Total Liabilities and Fund Balances $170,249 $1,786,120
91
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Debt Service Funds
Taxable Tax
Increment
Bonds of 1997
Refunding
Bonds of 2005B
Housing
Improvement
Bonds of 1999A
Refunding
Bonds of 2009B
Housing
Improvement
Bonds of 1999B
Refunding
Bonds of 2009B
Improvement
Revolving
Bonds of
2010A
Assets
Cash and cash equivalents $ 89,104 $ 422,908 $ 785,587 $ 173,754
Taxes receivable ---666
Special assessments receivable 13,394 293,315 528,816 317,937
Interest receivable 143 647 1,234 380
Total Assets $102,641 $716,870 $1,315,637 $492,737
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $93 $441 $819 $160
Due to other funds ----
Total Liabilities 93 441 819 160
Deferred inflows of resources:
Taxes and special assessments 10,960 290,105 525,368 318,054
Total Deferred Inflows of Resources 10,960 290,105 525,368 318,054
Fund balances:
Restricted 91,588 426,324 789,450 174,523
Total Fund Balances 91,588 426,324 789,450 174,523
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $102,641 $716,870 $1,315,637 $492,737
92
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Debt Service Funds
Tax
Increment
Bonds of 2002
Refunding
Bonds of
2010B
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Assets
Cash and cash equivalents $ 255,419 $ 241,400 $ 60,335 $ 470,004 $ 349,656
Taxes receivable -1,804 848 1,182 624
Special assessments receivable ---486,687 307,391
Interest receivable 427 367 97 780 556
Total Assets $255,846 $243,571 $61,280 $958,653 $658,227
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $81 $252 $63 $466 $343
Due to other funds -----
Total Liabilities 81 252 63 466 343
Deferred inflows of resources:
Taxes and special assessments -1,161 548 487,300 307,373
Total Deferred Inflows of Resources -1,161 548 487,300 307,373
Fund balances:
Restricted 255,765 242,158 60,669 470,887 350,511
Total Fund Balances 255,765 242,158 60,669 470,887 350,511
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $255,846 $243,571 $61,280 $958,653 $658,227
93
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Debt Service Funds
Improvement
Bonds of 2014A
Refunding
Bonds of 2014B
SROP Bonds of
2015A
Tax Abatement
Bonds of 2015B
Tax Increment
Revenue Bonds
of 2015C
Assets
Cash and cash equivalents $ 205,617 $ 655,160 $ 326,865 $ 144,910 $ 485,227
Taxes receivable 796 6,856 2,045 --
Special assessments receivable 73,861 2,724 57,618 --
Interest receivable 313 1,164 528 240 813
Total Assets $280,587 $665,904 $387,056 $145,150 $486,040
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $154 $532 $270 $791 $167
Due to other funds -----
Total Liabilities 154 532 270 791 167
Deferred inflows of resources:
Taxes and special assessments 74,311 7,279 58,637 531 -
Total Deferred Inflows of Resources 74,311 7,279 58,637 531 -
Fund balances:
Restricted 206,122 658,093 328,149 143,828 485,873
Total Fund Balances 206,122 658,093 328,149 143,828 485,873
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $280,587 $665,904 $387,056 $145,150 $486,040
94
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Debt Service Funds
Tax Increment
Revenue Bonds
of 2015D
Improvement
Bonds of 2016A
Tax Abatement
Bonds of 2016B
G O Bonds of
2016C
Tax Increment
Revenue Bonds
of 2016D
Assets
Cash and cash equivalents $ 147,343 $ 603,632 $ 115,590 $- $-
Taxes receivable -672 238 --
Special assessments receivable -680,520 ---
Interest receivable 249 93 29 -6,159
Total Assets $147,592 $1,284,917 $115,857 $-$6,159
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $431 $22 $- $-
Due to other funds ---16,825 7,521
Total Liabilities -431 22 16,825 7,521
Deferred inflows of resources:
Taxes and special assessments -680,744 79 --
Total Deferred Inflows of Resources -680,744 79 --
Fund balances:
Restricted 147,592 603,742 115,756 (16,825)(1,362)
Total Fund Balances 147,592 603,742 115,756 (16,825)(1,362)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $147,592 $1,284,917 $115,857 $-$6,159
95
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Debt Service Funds
SROP Bonds of
2017A
G O Bonds of
2017B Total
Assets
Cash and cash equivalents $ 243,803 $ 34,748 $ 5,811,062
Taxes receivable --15,731
Special assessments receivable -- 2,762,263
Interest receivable --14,219
Total Assets $243,803 $34,748 $8,603,275
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 4,606 $931 $ 10,622
Due to other funds 4,841 -29,187
Total Liabilities 9,447 931 39,809
Deferred inflows of resources:
Taxes and special assessments -- 2,762,450
Total Deferred Inflows of Resources --2,762,450
Fund balances:
Restricted 234,356 33,817 5,801,016
Total Fund Balances 234,356 33,817 5,801,016
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $243,803 $34,748 $8,603,275
96
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Capital Project Funds
Park
Improvements
Capital
Improvement
Municipal State
Aid
Construction
Fund
Pavilion
Addition Total
Assets
Cash and cash equivalents $ 1,212,454 $- $- $ 689,299 $ 1,901,753
Taxes receivable -2,022 --2,022
Accounts receivable 75,952 -- 1,000,000 1,075,952
Interest receivable 1,391 ---1,391
Total Assets $1,289,797 $2,022 $-$1,689,299 $2,981,118
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 201,442 $ 6,624 $ 551,551 $ 26,408 $ 786,025
Total Liabilities 201,442 6,624 551,551 26,408 786,025
Deferred inflows of resources:
Due to other funds -140,090 44,014 -184,104
Due to other governments --55,026 -55,026
Taxes and special assessments -955 -500,000 500,955
Total Deferred Inflows of Resources -141,045 99,040 500,000 740,085
Fund balances:
Restricted 1,088,355 --- 1,088,355
Unassigned - (145,647) (650,591) 1,162,891 366,653
Total Fund Balances 1,088,355 (145,647)(650,591)1,162,891 1,455,008
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,289,797 $2,022 $-$1,689,299 $2,981,118
97
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Special Revenue Debt Service Capital Projects
Total
Non-major
Governmental
Funds
Assets
Cash and cash equivalents $ 1,679,704 $ 5,811,062 $ 1,901,753 $ 9,392,519
Taxes receivable -15,731 2,022 17,753
Special assessments receivable - 2,762,263 - 2,762,263
Accounts receivable 69,651 - 1,075,952 1,145,603
Rehabilitation loans receivable 32,222 --32,222
Due from other governments 1,569 --1,569
Interest receivable 2,974 14,219 1,391 18,584
Total Assets $1,786,120 $8,603,275 $2,981,118 $13,370,513
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 180,101 $ 10,622 $ 786,025 $ 976,748
Salaries payable 7,959 --7,959
Due to other funds 911,499 29,187 184,104 1,124,790
Due to other governments 1,506 -55,026 56,532
Unearned revenue 64,289 --64,289
Total Liabilities 1,165,354 39,809 1,025,155 2,230,318
Deferred inflows of resources:
Taxes and special assessments - 2,762,450 500,955 3,263,405
Total Deferred Inflows of Resources -2,762,450 500,955 3,263,405
Fund balances:
Restricted 644,818 5,801,016 1,088,355 7,534,189
Committed 699,157 -- 699,157
Unassigned (723,209)- 366,653 (356,556)
Total Fund Balances 620,766 5,801,016 1,455,008 7,876,790
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,786,120 $8,603,275 $2,981,118 $13,370,513
98
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications
Hopkins Race &
Equity Initiative
Revenues
Franchise Fees $- $- $- $ 240,917 $-
Tax increments -----
Intergovernmental 71,563 ----
Charges for services --113,093 9,771 -
Fines --22,724 --
Investment earnings --1,792 3,782 20
Other miscellaneous revenues ---33,568 6,075
Total Revenues 71,563 -137,609 288,038 6,095
Expenditures
Current:
General government ---167,254 -
Public safety 94,804 -71,204 --
Highways and streets --40,091 --
Urban redevelopment and housing -3,861 ---
Culture and recreation ----3,004
Debt service:
Interest and fiscal fees -----
Capital Outlay --38,956 --
Total Expenditures 94,804 3,861 150,251 167,254 3,004
Excess (deficiency) of revenues
over expenditures (23,241)(3,861)(12,642)120,784 3,091
Other Financing Sources (Uses)
Transfer in -----
Transfer out ---(86,920)-
Total Other Financing Sources (Uses)---(86,920)-
Net change in fund balances (23,241)(3,861)(12,642)33,864 3,091
Fund balance (deficit) - January 1 243 36,083 149,861 528,074 -
Fund balance (deficit) - December 31 $(22,998)$32,222 $137,219 $561,938 $3,091
99
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Special Revenue Funds
Depot
Coffee
House
Tax
Increment
District
Entertainment
District
Tax
Increment
District
Sonoma
Tax Increment
District Oaks of
Mainstreet 5th Ave Flats
Revenues
Franchise Fees $- $- $- $- $-
Tax increments -30,025 15,368 --
Intergovernmental 15,000 ----
Charges for services 68,872 ----
Fines -----
Investment earnings -1,506 -4,379 -
Other miscellaneous revenues 237,600 ----
Total Revenues 321,472 31,531 15,368 4,379 -
Expenditures
Current:
General government -----
Public safety -----
Highways and streets -----
Urban redevelopment and housing -3,437 -4,964 2,000
Culture and recreation 359,464 ----
Debt service:
Interest and fiscal fees -4,934 4,198 --
Capital Outlay -----
Total Expenditures 359,464 8,371 4,198 4,964 2,000
Excess (deficiency) of revenues
over expenditures (37,992)23,160 11,170 (585)(2,000)
Other Financing Sources (Uses)
Transfer in 15,000 -24,108 --
Transfer out -----
Total Other Financing Sources (Uses)15,000 -24,108 --
Net change in fund balances (22,992)23,160 35,278 (585)(2,000)
Fund balance (deficit) - January 1 (8,296)23,813 (103,148)563,117 (389,831)
Fund balance (deficit) - December 31 $(31,288)$46,973 $(67,870)$562,532 $(391,831)
100
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Special Revenue
Funds
Tax Increment
District
Marketplace &
Main Total
Revenues
Franchise Fees $- $ 240,917
Tax increments 179,650 225,043
Intergovernmental -86,563
Charges for services -191,736
Fines -22,724
Investment earnings -11,479
Other miscellaneous revenues -277,243
Total Revenues 179,650 1,055,705
Expenditures
Current:
General government -167,254
Public safety -166,008
Highways and streets -40,091
Urban redevelopment and housing 236,156 250,418
Culture and recreation -362,468
Debt service:
Interest and fiscal fees -9,132
Capital Outlay -38,956
Total Expenditures 236,156 1,034,327
Excess (deficiency) of revenues
over expenditures (56,506)21,378
Other Financing Sources (Uses)
Transfer in -39,108
Transfer out -(86,920)
Total Other Financing Sources (Uses)-(47,812)
Net change in fund balances (56,506)(26,434)
Fund balance (deficit) - January 1 (152,716)647,200
Fund balance (deficit) - December 31 $(209,222)$620,766
101
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Debt Service Funds
Taxable Tax
Increment
Bonds of 1997
Refunding
Bonds of 2005B
Housing
Improvement
Bonds of 1999A
Refunding
Bonds of 2009B
Housing
Improvement
Bonds of 1999B
Refunding
Bonds of 2009B
Improvement
Revolving
Bonds of
2010A
Tax
Increment
Bonds of 2002
Refunding
Bonds of
2010B
Revenues
Property taxes $- $- $- $ 79,449 $-
Special assessments 172,991 152,122 254,872 88,443 -
Investment earnings 125 2,114 4,124 347 599
Total Revenues 173,116 154,236 258,996 168,239 599
Expenditures
Current:
General government 169,552 1,611 2,410 919 861
Debt Service:
Principal retirement -95,000 170,000 175,000 150,000
Interest and fiscal fees -20,759 37,257 48,709 26,893
Total Expenditures 169,552 117,370 209,667 224,628 177,754
Excess (deficiency) of revenues
over expenditures 3,564 36,866 49,329 (56,389)(177,155)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Payment to bond escrow agent -----
Transfer in ---- 178,000
Transfer out -----
Total Other Financing Sources (Uses)----178,000
Net change in fund balances 3,564 36,866 49,329 (56,389)845
Fund balance (deficit) - January 1 88,024 389,458 740,121 230,912 254,920
Fund balance (deficit) - December 31 $91,588 $426,324 $789,450 $174,523 $255,765
102
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Debt Service Funds
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Improvement
Bonds of 2014A
Revenues
Property taxes $ 214,530 $ 92,301 $ 136,873 $ 91,357 $ 94,842
Special assessments -- 104,856 67,047 18,716
Investment earnings 287 -1,975 1,619 485
Total Revenues 214,817 92,301 243,704 160,023 114,043
Expenditures
Current:
General government 1,001 680 1,434 5,842 890
Debt Service:
Principal retirement 175,000 80,000 200,000 115,000 110,000
Interest and fiscal fees 16,245 9,365 52,875 34,612 48,619
Total Expenditures 192,246 90,045 254,309 155,454 159,509
Excess (deficiency) of revenues
over expenditures 22,571 2,256 (10,605)4,569 (45,466)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Payment to bond escrow agent -----
Transfer in ----49,934
Transfer out -----
Total Other Financing Sources (Uses)----49,934
Net change in fund balances 22,571 2,256 (10,605)4,569 4,468
Fund balance (deficit) - January 1 219,587 58,413 481,492 345,942 201,654
Fund balance (deficit) - December 31 $242,158 $60,669 $470,887 $350,511 $206,122
103
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Debt Service Funds
Refunding
Bonds of 2014B
SROP Bonds of
2015A
Tax Abatement
Bonds of 2015B
Tax Increment
Revenue Bonds
of 2015C
Tax Increment
Revenue Bonds
of 2015D
Revenues
Property taxes $ 800,338 $ 259,024 $ 129,621 $- $-
Special assessments 12,364 11,303 ---
Investment earnings -281 -1,401 -
Total Revenues 812,702 270,608 129,621 1,401 -
Expenditures
Current:
General government 1,661 4,588 3,772 1,138 748
Debt Service:
Principal retirement 895,000 235,000 115,000 230,000 335,000
Interest and fiscal fees 101,300 91,600 74,498 95,075 161,413
Total Expenditures 997,961 331,188 193,270 326,213 497,161
Excess (deficiency) of revenues
over expenditures (185,259)(60,580)(63,649)(324,812)(497,161)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Payment to bond escrow agent -----
Transfer in 145,000 68,414 63,750 325,000 496,000
Transfer out -----
Total Other Financing Sources (Uses)145,000 68,414 63,750 325,000 496,000
Net change in fund balances (40,259)7,834 101 188 (1,161)
Fund balance (deficit) - January 1 698,352 320,315 143,727 485,685 148,753
Fund balance (deficit) - December 31 $658,093 $328,149 $143,828 $485,873 $147,592
104
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Debt Service Funds
Improvement
Bonds of 2016A
Tax Abatement
Bonds of 2016B
G O Bonds of
2016C
Tax Increment
Revenue Bonds
of 2016D
SROP Bonds of
2017A
Revenues
Property taxes $ 109,140 $ 38,524 $- $- $-
Special assessments 129,839 ----
Investment earnings 1,289 --4,717 42
Total Revenues 240,268 38,524 -4,717 42
Expenditures
Current:
General government 1,255 607 2,821 5,802 148,457
Debt Service:
Principal retirement -----
Interest and fiscal fees 92,750 34,551 27,489 67,259 -
Total Expenditures 94,005 35,158 30,310 73,061 148,457
Excess (deficiency) of revenues
over expenditures 146,263 3,366 (30,310)(68,344)(148,415)
Other Financing Sources (Uses)
Improvement bonds issued ---- 11,795,000
Premium on improvement bonds ---- 1,152,405
Payment to bond escrow agent --- (3,678,549)-
Transfer in 154,664 95,000 13,485 67,000 -
Transfer out ---- (12,564,634)
Total Other Financing Sources (Uses)154,664 95,000 13,485 (3,611,549)382,771
Net change in fund balances 300,927 98,366 (16,825)(3,679,893)234,356
Fund balance (deficit) - January 1 302,815 17,390 - 3,678,531 -
Fund balance (deficit) - December 31 $603,742 $115,756 $(16,825)$(1,362)$234,356
105
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Debt Service
Funds
G O Bonds of
2017B Total
Revenues
Property taxes $- $ 2,045,999
Special assessments - 1,012,553
Investment earnings 4 19,409
Total Revenues 4 3,077,961
Expenditures
Current:
General government 71,856 427,905
Debt Service:
Principal retirement - 3,080,000
Interest and fiscal fees - 1,041,269
Total Expenditures 71,856 4,549,174
Excess (deficiency) of revenues
over expenditures (71,852)(1,471,213)
Other Financing Sources (Uses)
Improvement bonds issued 1,735,000 13,530,000
Premium on improvement bonds 199,768 1,352,173
Payment to bond escrow agent - (3,678,549)
Transfer in - 1,656,247
Transfer out (1,829,099) (14,393,733)
Total Other Financing Sources (Uses)105,669 (1,533,862)
Net change in fund balances 33,817 (3,005,075)
Fund balance (deficit) - January 1 - 8,806,091
Fund balance (deficit) - December 31 $33,817 $5,801,016
106
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Capital Projects Funds
Park
Improvements
Capital
Improvement
Municipal State
Aid
Construction
Fund
Pavilion
Addition Total
Revenues
Property taxes $- $ 303,050 $- $- $ 303,050
Franchise Fees 300,805 ---300,805
Investment earnings 5,246 --(1,559)3,687
Other miscellaneous revenues 180,750 609 - 1,500,000 1,681,359
Total Revenues 486,801 303,659 -1,498,441 2,288,901
Expenditures
Current:
General government -9,118 -335,550 344,668
Highways and streets 190,952 -153,392 -344,344
Capital outlay 1,692,491 194,260 243,324 - 2,130,075
Total Expenditures 1,883,443 203,378 396,716 335,550 2,819,087
Excess (deficiency) of revenues
over expenditures (1,396,642)100,281 (396,716)1,162,891 (530,186)
Other Financing Sources (Uses)
Transfer in 1,829,097 --- 1,829,097
Transfer out (105,000)--- (105,000)
Total Other Financing Sources (Uses)1,724,097 ---1,724,097
Net change in fund balances 327,455 100,281 (396,716)1,162,891 1,193,911
Fund balance (deficit) - January 1 760,900 (245,928) (253,875)-261,097
Fund balance (deficit) - December 31 $1,088,355 $(145,647)$(650,591)$1,162,891 $1,455,008
107
City of Hopkins
Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2017
Special Revenue Debt Service Capital Projects
Total Nonmajor
Governmental
Funds
Revenues
Property taxes $- $ 2,045,999 $ 303,050 $ 2,349,049
Franchise Fees 240,917 -300,805 541,722
Tax increments 225,043 --225,043
Special assessments - 1,012,553 - 1,012,553
Intergovernmental 86,563 --86,563
Charges for services 191,736 --191,736
Fines 22,724 --22,724
Investment earnings 11,479 19,409 3,687 34,575
Other miscellaneous revenues 277,243 - 1,681,359 1,958,602
Total Revenues 1,055,705 3,077,961 2,288,901 6,422,567
Expenditures
Current:
General government 167,254 427,905 344,668 939,827
Public safety 166,008 --166,008
Highways and streets 40,091 -344,344 384,435
Urban redevelopment and housing 250,418 --250,418
Culture and recreation 362,468 --362,468
Debt service:
Principal retirement - 3,080,000 - 3,080,000
Interest and fiscal fees 9,132 1,041,269 - 1,050,401
Capital outlay 38,956 - 2,130,075 2,169,031
Total Expenditures 1,034,327 4,549,174 2,819,087 8,402,588
Excess (deficiency) of revenues
over expenditures 21,378 (1,471,213)(530,186)(1,980,021)
Other Financing Sources (Uses)
Improvement bonds issued - 13,530,000 - 13,530,000
Premium on improvement bonds - 1,352,173 - 1,352,173
Payment to bond escrow agent - (3,678,549)- (3,678,549)
Transfer in 39,108 1,656,247 1,829,097 3,524,452
Transfer out (86,920) (14,393,733)(105,000) (14,585,653)
Total Other Financing Sources (Uses)(47,812)(1,533,862)1,724,097 142,423
Net change in fund balances (26,434)(3,005,075)1,193,911 (1,837,598)
Fund balance (deficit) - January 31 647,200 8,806,091 261,097 9,714,388
Fund balance (deficit) - December 31 $620,766 $5,801,016 $1,455,008 $7,876,790
108
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
State Chemical Assessment
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 60,000 $ 60,000 $ 71,563 $ 11,563
Total Revenues 60,000 60,000 71,563 11,563
Expenditures
Current:
Public safety 60,000 60,000 94,804 (34,804)
Total Expenditures 60,000 60,000 94,804 (34,804)
Net change in fund balance $-$-(23,241)$(23,241)
Fund balance (deficit) - January 1 243
Fund balance (deficit) - December 31 $ (22,998)
109
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Parking
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Charges for services $ 120,000 $ 120,000 $ 113,093 $ (6,907)
Fines 22,000 22,000 22,724 724
Investment earnings 2,500 2,500 1,792 (708)
Total Revenues 144,500 144,500 137,609 (6,891)
Expenditures
Current:
Public safety 76,915 76,915 71,204 5,711
Highways and streets 34,013 34,013 40,091 (6,078)
Capital Outlay --38,956 (38,956)
Total Expenditures 110,928 110,928 150,251 (39,323)
Net change in fund balance $33,572 $33,572 (12,642)$(46,214)
Fund balance (deficit) - January 1 149,861
Fund balance (deficit) - December 31 $ 137,219
110
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Communications
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Franchise Fees $ 230,000 $ 230,000 $ 240,917 $ 10,917
Charges for services --9,771 9,771
Investment earnings 6,200 6,200 3,782 (2,418)
Other miscellaneous revenues 33,000 33,000 33,568 568
Total Revenues 269,200 269,200 288,038 18,838
Expenditures
Current:
General government 176,327 176,327 167,254 9,073
Capital Outlay 26,500 26,500 -26,500
Total Expenditures 202,827 202,827 167,254 35,573
Excess (deficiency) of revenues over expenditures 66,373 66,373 120,784 54,411
Other Financing Sources (Uses)
Transfer out (86,920)(86,920)(86,920)-
Total Other Financing Sources (Uses)(86,920)(86,920)(86,920)-
Net change in fund balance $(20,547)$(20,547)33,864 $54,411
Fund balance (deficit) - January 1 528,074
Fund balance (deficit) - December 31 $ 561,938
111
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Hopkins Race & Equity Initiative
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $20 $20
Other miscellaneous revenues --6,075 6,075
Total Revenues --6,095 6,095
Expenditures
Culture and recreation --3,004 (3,004)
Total Expenditures --3,004 (3,004)
Net change in fund balance $-$-3,091 $3,091
Fund balance (deficit) - January 1 -
Fund balance (deficit) - December 31 $ 3,091
112
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Depot Coffee House
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 15,000 $ 15,000 $ 15,000 $-
Charges for services 68,000 68,000 68,872 872
Other miscellaneous revenues 247,000 247,000 237,600 (9,400)
Total Revenues 330,000 330,000 321,472 (8,528)
Expenditures
Current:
Culture and recreation 343,036 343,036 359,464 (16,428)
Total Expenditures 343,036 343,036 359,464 (16,428)
Excess (deficiency) of revenues over expenditures (13,036)(13,036)(37,992)(24,956)
Other Financing Sources (Uses)
Transfer in 15,000 15,000 15,000 -
Total Other Financing Sources (Uses)15,000 15,000 15,000 -
Net change in fund balance $1,964 $1,964 (22,992)$(24,956)
Fund balance (deficit) - January 1 (8,296)
Fund balance (deficit) - December 31 $ (31,288)
113
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Entertainment District
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 30,000 $ 30,000 $ 30,025 $25
Investment earnings 1,000 1,000 1,506 506
Total Revenues 31,000 31,000 31,531 531
Expenditures
Current:
Urban redevelopment and housing 6,500 6,500 3,437 3,063
Debt Service:
Interest and fiscal fees 11,258 11,258 4,934 6,324
Total Expenditures 17,758 17,758 8,371 9,387
Net change in fund balance $13,242 $13,242 23,160 $9,918
Fund balance (deficit) - January 1 23,813
Fund balance (deficit) - December 31 $ 46,973
114
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Sonoma
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 12,000 $ 12,000 $ 15,368 $ 3,368
Other miscellaneous revenues 7,024 7,024 -(7,024)
Total Revenues 19,024 19,024 15,368 (3,656)
Expenditures
Urban redevelopment and housing 2,850 2,850 -2,850
Debt service:
Interest and fiscal fees 4,126 4,126 4,198 (72)
Total Expenditures 6,976 6,976 4,198 2,778
Excess (deficiency) of revenues over expenditures 12,048 12,048 11,170 (878)
Other Financing Sources (Uses)
Transfer in 21,125 21,125 24,108 2,983
Total Other Financing Sources (Uses)21,125 21,125 24,108 2,983
Net change in fund balance $33,173 $33,173 35,278 $2,105
Fund balance (deficit) - January 1 (103,148)
Fund balance (deficit) - December 31 $ (67,870)
115
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Oaks of Mainstreet
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $ 4,379 $ 4,379
Total Revenues --4,379 4,379
Expenditures
Current:
Urban redevelopment and housing --4,964 (4,964)
Total Expenditures --4,964 (4,964)
Net change in fund balance $-$-(585)$(585)
Fund balance (deficit) - January 1 563,117
Fund balance (deficit) - December 31 $ 562,532
116
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
5th Ave Flats
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Expenditures
Urban redevelopment and housing $ 2,000 $ 2,000 $ 2,000 $-
Debt service:
Total Expenditures 2,000 2,000 2,000 -
Net change in fund balance $(2,000)$(2,000)(2,000)$-
Fund balance (deficit) - January 1 (389,831)
Fund balance (deficit) - December 31 $ (391,831)
117
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Marketplace & Main
For the Year Ended December 31, 2017
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 125,000 $ 125,000 $ 179,650 $ 54,650
Total Revenues 125,000 125,000 179,650 54,650
Expenditures
Current:
Urban redevelopment and housing 120,950 120,950 236,156 (115,206)
Debt service:
Total Expenditures 120,950 120,950 236,156 (115,206)
Net change in fund balance $4,050 $4,050 (56,506)$(60,556)
Fund balance (deficit) - January 1 (152,716)
Fund balance (deficit) - December 31 $ (209,222)
118
CITY OF HOPKINS, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units, which render services to the general public on a user
charge basis. Records are maintained on the accrual basis of accounting.
The Authority for these types of funds is derived from Section 11.01 of the City Charter,
which allows for utility or other public service enterprise funds.
The City has six Enterprise Funds, three of which are considered to be nonmajor, they
are:
Refuse Utility Fund – This fund accounts for the operations of the city owned refuse
service.
Pavilion/Ice Arena – This fund accounts for the operations of the city owned ice arena.
Housing Authority Fund – This fund accounts for the operations of the city owned
federally subsidized apartment building.
119
City of Hopkins
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2017
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility Pavilion
Housing
Authority Total
Assets
Current assets:
Cash and cash equivalents $ 1,178,919 $ 18,505 $ 441,779 $ 1,639,203
Taxes receivable -114 -114
Accounts receivable 52,139 38,648 457 91,244
Accrued interest receivable 1,587 59 -1,646
Due from other governments -- 121,848 121,848
Prepaid expenses -1,957 13,616 15,573
Total current assets 1,232,645 59,283 577,700 1,869,628
Noncurrent assets:
Capital assets, nondepreciable:
Land -- 208,252 208,252
Construction in progress -- 556,431 556,431
Capital assets, depreciable:
Building and structures 302,727 3,272,851 4,701,873 8,277,451
Distribution system - 125,614 - 125,614
Machinery and equipment 870,398 290,009 52,719 1,213,126
Less accumulated depreciation (723,216) (1,635,723) (3,790,982) (6,149,921)
Total noncurrent assets 449,909 2,052,751 1,728,293 4,230,953
Total Assets 1,682,554 2,112,034 2,305,993 6,100,581
Deferred outflows of resources:
Pensions 57,124 53,501 - 110,625
Total Deferred Outflows of Resources 57,124 53,501 -110,625
Liabilities
Current liablilities:
Accounts payable 33,570 9,428 74,659 117,657
Salaries payable 6,264 5,469 -11,733
Due to other governments 10,982 627 -11,609
Compensated absences 19,386 23,687 16,974 60,047
Accrued interest payable -832 -832
Revenue bonds - current -20,000 -20,000
Total current liabilities 70,202 60,043 91,633 221,878
Noncurrent liabilities:
Net OPEB liability --10,800 10,800
Net pension liability 234,289 219,429 - 453,718
Revenue bonds payable (net of unamortized discounts)-81,227 -81,227
Total noncurrent liabilities 234,289 300,656 10,800 545,745
Total Liabilities 304,491 360,699 102,433 767,623
Deferred inflows of resources:
Taxes and special assessments -188 -188
Pensions 46,869 43,896 -90,765
Total Deferred Inflows of Resources 46,869 44,084 -90,953
Net Position
Net investment in capital assets 449,909 1,951,524 1,728,293 4,129,726
Unrestricted 938,409 (190,772) 475,267 1,222,904
Total Net Position $1,388,318 $1,760,752 $2,203,560 $5,352,630
120
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Activities
For the Year Ended December 31, 2017
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility Pavilion
Housing
Authority
Nonmajor
Enterprise Funds
Total
Operating revenues
Charges for services $ 963,203 $ 464,114 $ 281,733 $ 1,709,050
Other 14,282 5,560 12,267 32,109
Total operating revenues 977,485 469,674 294,000 1,741,159
Operating expenses
Cost of sales and services 709,197 454,629 90,083 1,253,909
Administration 108,882 7,876 323,000 439,758
Depreciation 56,671 83,578 178,812 319,061
Total operating expenses 874,750 546,083 591,895 2,012,728
Operating income (loss)102,735 (76,409)(297,895)(271,569)
Nonoperating revenues (expenses)
Miscellaneous revenue 2,109 18 -2,127
Investment earnings 7,624 501 867 8,992
Interest/fiscal agent expense -(1,747)-(1,747)
Intergovernmental grants 24,750 -190,784 215,534
Total nonoperating revenues (expenses)34,483 (1,228)191,651 224,906
Income (loss) before contributions and transfers 137,218 (77,637)(106,244)(46,663)
Capital contributions
Transfers (25,000)--(25,000)
Change in net position 112,218 (77,637)(106,244)(71,663)
Net position - January 1 1,276,100 1,838,389 2,309,804 5,424,293
Net position - December 31 $1,388,318 $1,760,752 $2,203,560 $5,352,630
121
City of Hopkins
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2017
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
Refuse Pavilion/Housing
Enterprise
Funds
Utility Ice Arena Authority Total
Cash Flows from Operating Activities
Receipts from customers and users $ 981,236 $ 431,198 $ 261,161 $ 1,673,595
Receipts from interfund services provided - - (448,938) (448,938)
Payments to suppliers (347,495) (150,974) (309,705) (808,174)
Payments to employees (308,048) (277,353) (101,479) (686,880)
Payments for interfund services used (108,882) (7,876)- (116,758)
Net cash used by operating activities 216,811 (5,005) (598,961) (387,155)
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 24,750 - 190,901 215,651
Taxes - - - -
Transfers out (25,000) - - (25,000)
MIscellaneous income 2,109 18 2,127
Net cash provided (used) by noncapital and related financing activities 1,859 18 190,901 192,778
Cash Flows from Capital and Related Financing Activities:
Construction of capital assets - - - -
Interest and other payments - (951)- (951)
Bond payments - (20,000)- (20,000)
Net cash provided (used) by capital and related financing activities - (20,951)- (20,951)
Cash Flows From Investing Activities
Interest received 7,624 501 867 8,992
Net increase (decrease) in cash and cash equivalents 226,294 (25,437) (407,193) (206,336)
Cash and cash equivalents - January 1 3,065 43,942 848,972 895,979
Cash and cash equivalents - December 31 $ 229,359 $ 18,505 $ 441,779 $ 689,643
Reconciliation of Cash and Cash Equivalents at End of Year to Cash and
Investments per Statement of Net Position
Ending cash and cash equivalents per cash flow statement $ 229,359 $ 18,505 $ 441,779 $ 689,643
Investments 949,560 - - 949,560
Cash and Investments per Statement of Net Position $ 1,178,919 $ 18,505 $ 441,779 $ 1,639,203
Reconciliation of operating loss to net cash used by operating activities:
Operating income (loss) 102,735 (76,409) (297,895) (271,569)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Depreciation expense 56,671 83,578 178,812 319,061
(Increase) decrease in:
Accounts receivable 3,751 (37,930) (32,839) (67,018)
Prepaid expense - (1,957) (13,616) (15,573)
Pensions (deferred outflows) 67,064 68,396 - 135,460
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable 8,988 2,188 15,515 26,691
Due to other funds - - (448,938) (448,938)
Due to other governments 5,094 63 - 5,157
Unearned revenue - (546)- (546)
Net pension (48,675)(58,315)- (106,990)
Pension (deferred inflows) 21,183 15,927 - 37,110
Net cash used by operating activities $ 216,811 $ (5,005)$ (598,961)- (387,155)
122
CITY OF HOPKINS, MINNESOTA
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the government, on a cost
reimbursement basis. Revenues and expenses are recognized on the accrual basis.
Revenues are recognized in the accounting period in which they are earned and
become objectively measurable; expenses are recognized in the period incurred, if
objectively measurable.
Equipment Replacement Fund – This fund accounts for the acquisition of machinery
and equipment. User charges are billed to the various City departments.
Insurance Risk Fund – This fund accounts for the dividends and deductibles relating
to property and casualty insurance coverage. Deductibles are paid from past dividends.
Users are charged only if the fund has a shortfall.
Employee Benefits Fund – This fund accounts for accrued employee benefits within
the governmental funds. User charges are billed to the various departments.
123
&LW\RI+RSNLQV
&RPELQLQJ6WDWHPHQWRI1HW3RVLWLRQ
,QWHUQDO6HUYLFH)XQGV
'HFHPEHU
(TXLSPHQW
5HSODFHPHQW
(PSOR\HH
%HQHILWV
,QVXUDQFH
5LVN 7RWDO
$VVHWV
&XUUHQWDVVHWV
&DVKDQGFDVKHTXLYDOHQWV
$FFUXHGLQWHUHVWUHFHLYDEOH
7RWDOFXUUHQWDVVHWV
3URSHUW\DQGHTXLSPHQW
0DFKLQHU\DQGHTXLSPHQW
/HVVDFFXPXODWHGGHSUHFLDWLRQ
1HWSURSHUW\DQGHTXLSPHQW
7RWDO$VVHWV
/LDELOLWLHV
&XUUHQWOLDELOLWLHV
$FFRXQWVSD\DEOH
'XHWRRWKHUIXQGV
&RPSHQVDWHGDEVHQFHV
$FFUXHGLQWHUHVWSD\DEOH
&DSLWDOOHDVHFXUUHQW
7RWDOFXUUHQWOLDELOLWLHV
1RQFXUUHQWOLDELOLWLHV
&DSLWDOOHDVHSD\DEOH
7RWDOQRQFXUUHQWOLDELOLWLHV
7RWDO/LDELOLWLHV
1HW3RVLWLRQ
1HWLQYHVWPHQWLQFDSLWDODVVHWV
8QUHVWULFWHG
7RWDO1HW3RVLWLRQ
124
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
Year Ended December 31, 2017
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Operating revenues
Charges for services $ 445,012 $- $ 26,470 $ 471,482
Operating expenses
Materials, supplies and services 20,651 1,788 31,109 53,548
Administration 7,350 -633 7,983
Depreciation expense 656,893 --656,893
Total operating expenses 684,894 1,788 31,742 718,424
Operating income (loss)(239,882)(1,788)(5,272)(246,942)
Nonoperating revenues (expenses)
Investment earnings 1,332 7,153 2,082 10,567
Interest/fiscal agent expense (3,928)--(3,928)
Gain on sale of assets 69,883 --69,883
Total nonoperating revenues (expenses)67,287 7,153 2,082 76,522
Change in net position (172,595)5,365 (3,190)(170,420)
Total net position - January 1 4,847,830 170,698 299,354 5,317,882
Net position - December 31 $4,675,235 $176,063 $296,164 $5,147,462
125
City of Hopkins
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2017
Equipment Employee Insurance
Replacement Benefits Risk Totals
Cash Flows from Operating Activities
Receipts from customers and users $- $- $ 26,470 $ 26,470
Receipts from interfund services provided 445,012 - - 445,012
Internal activity-payments to other funds 24,056 - 24,056
Payments to suppliers (32,873)- (31,417) (64,290)
Payments for interfund services used (7,350) 55,999 (633)48,016
Net cash provided (used) by operating activities 428,845 55,999 (5,580) 479,264
Cash Flows from Noncapital Financing Activities
Transfers in - - - -
Net cash provided by noncapital financing activities - - - -
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (1,631,787) - - (1,631,787)
Proceeds from sales of capital assets 69,883 - - 69,883
Interest and other payments (8,149) - - (8,149)
Capital lease payments (49,833) - - (49,833)
Net cash used by capital and related
financing activities (1,619,886) - - (1,619,886)
Cash Flows From Investing Activities 1,332 7,154 2,081 10,567
Net increase (decrease) in cash and cash equivalents (1,189,709) 63,153 (3,499) (1,130,055)
Cash and Cash Equivalents - January 1 1,189,709 3,038 3,499 1,196,246
Cash and Cash Equivalents - December 31 $- $ 66,191 $- $ 66,191
Reconciliation of Cash and Cash Equivalents at End of Year
to Cash and Investments per Statement of Net Position
Ending cash and cash equivalents per cash flow statement $- $ 69,767 $- $ 69,767
Investments - 940,605 296,033 1,236,638
Cash and Investments per Statement of Net Position $- $ 1,010,372 $ 296,033 $ 1,306,405
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)$ (239,882) $ (1,788) $ (5,272) $ (246,942)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation expense 656,893 - - 656,893
(Increase) decrease in:
Due from other funds 24,056
Increase (decrease) in:
Accounts, compensated absences and accrued intereset
payable (12,222) 57,787 (308)45,257
Net Cash Provided (Used) by Operating Activities $ 428,845 $ 55,999 $ (5,580)$ 455,208
126
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2017
SECTION III
STATISTICAL SECTION
127
128
CITY OF HOPKINS, MINNESOTA
STATISTICAL SECTION
This part of the City of Hopkins’ comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and the required supplementary information says about the city’s overall financial
health.
Contents Page
Financial Trends 130
These schedules contain trend information to help the reader understand how the
city’s financial performance and well-being have changed over time.
Revenue Capacity 138
These schedules contain information to help the reader assess the factors affecting
the city’s ability to generate its property and sales taxes.
Debt Capacity 142
These schedules present information to help the reader assess the affordability of the
city’s current levels of outstanding debt and the city’s ability to issue additional debt in
the future.
Demographic and Economic Information 147
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the city’s financial activities take place and
to help make comparisons over time and with other governments.
Operating Information 149
These schedules contain information about the city’s operations and resources to
help the reader understand how the city’s financial information relates to the services
the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
129
City of Hopkins
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2008 2009 2010 2011
Governmental activities
Net investment in capital assets $ 30,769,922 $ 32,759,480 $ 32,823,582 $ 31,666,432
Restricted 10,074,674 11,952,783 8,613,114 8,250,360
Unrestricted 3,663,772 10,022 3,590,101 6,348,703
Total governmental activities net position $ 44,508,368 $ 44,722,285 $ 45,026,797 $ 46,265,495
Business-type activities
Net investment in capital assets $ $ 16,081,209 $ $ 14,994,311 $ $ 16,279,028 $ 17,075,284
Restricted - - - -
Unrestricted 280,214 1,655,927 1,073,329 731,674
Total business-type activities net position $ 16,361,423 $ 16,650,238 $ 17,352,357 $ 17,806,958
Primary Government
Net investment in capital assets $ 46,851,131 $ 47,753,791 $ 49,102,610 $ 48,741,716
Restricted 10,074,674 11,952,783 8,613,114 8,250,360
Unrestricted 3,943,986 1,665,949 4,663,430 7,080,377
Total primary government net position $ 60,869,791 $ 61,372,523 $ 62,379,154 $ 64,072,453
130
Schedule 1
Fiscal Year
2012 2013 2014 2015 2016 2017
$ 31,891,229 $ 30,666,268 $ 31,272,253 $ 32,609,356 $ 33,833,387 $ 32,064,111
8,684,347 10,014,203 16,967,889 20,016,574 17,743,963 18,544,263
7,854,941 9,575,287 1,902,270 (9,447,813) (18,308,556) (17,563,673)
$ 48,430,517 $ 50,255,758 $ 50,142,412 $ 43,178,117 $ 33,268,794 $ 33,044,701
$ 16,405,495 $ 16,621,198 $ 16,937,928 $ 17,893,856 $ 21,798,183 $ 23,990,746
- - - - - -
2,262,236 2,469,397 1,954,212 1,419,018 435,435 1,443,445
$ 18,667,731 $ 19,090,595 $ 18,892,140 $ 19,312,874 $ 22,233,618 $ 25,434,191
$ 48,296,724 $ 47,287,466 $ 48,210,181 $ 50,503,212 $ 55,631,570 $ 56,054,857
8,684,347 10,014,203 16,967,889 20,016,574 17,743,963 18,544,263
10,117,177 12,044,684 3,856,482 (8,028,795) (17,873,121) (16,120,228)
$ 67,098,248 $ 69,346,353 $ 69,034,552 $ 62,490,991 $ 55,502,412 $ 58,478,892
131
City of Hopkins
Changes in Net Position,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2008 2009 2010 2011 2012 2013
Expenses
Governmental activities:
General Government $ 1,721,624 $ 1,679,040 $ 1,693,275 $ 1,719,970 $ 1,719,970 $ 2,108,141
Public Safety 6,171,249 6,249,519 6,243,813 6,213,995 6,213,995 6,357,722
Health and Welfare 236,858 278,002 180,895 170,018 170,018 165,649
Highways and Streets 3,154,762 3,069,078 3,062,507 3,332,067 3,332,067 5,845,437
Urban Development and Housing 1,037,927 1,690,861 1,914,779 2,859,900 2,859,900 2,000,868
Culture and Recreation 1,565,184 1,482,349 1,505,513 1,644,834 1,644,834 1,857,743
Interest on long-term debt 1,090,341 1,025,771 895,873 871,902 871,902 908,264
Total governmental activities expenses 14,977,945 15,474,620 15,496,655 16,812,686 16,812,686 19,243,824
Business-type activities:
Water 1,356,448 1,209,508 1,196,947 1,263,835 1,263,835 1,387,807
Sewer 1,756,489 1,741,115 1,844,309 1,800,126 1,800,126 1,995,886
Storm Sewer 417,595 403,231 420,619 407,057 407,057 448,170
Refuse 771,107 786,522 738,398 778,044 778,044 825,329
Pavilion/Ice Arena 411,134 401,598 398,354 416,166 416,166 426,634
Housing and Redevelopment Authority 573,070 528,542 542,324 607,090 607,090 615,043
Total business-type activities 5,285,843 5,070,516 5,140,951 5,272,318 5,272,318 5,698,869
Total primary government expenses $ 20,263,788 $ 20,545,136 $ 20,637,606 $ 22,085,004 $ 22,085,004 $ 24,942,693
Program Revenues
Governmental activities:
Charges for services:
General Government $ 19,239 $ 30,797 $ 17,169 $ 42,112 $ 42,112 $ 76,477
Public Safety 262,194 284,160 124,338 186,611 186,611 180,548
Health and Welfare 16,560 9,265 32,135 41,815 41,815 57,032
Highways and Streets 59,803 42,150 56,902 73,519 73,519 75,840
Urban Development and Housing - - - 206,916 206,916 228
Culture and Recreation 514,592 509,098 560,702 623,147 623,147 756,011
Operating grants and contributions 1,949,375 2,441,622 1,894,777 2,325,158 2,325,158 5,273,474
Capital grants and contributions 170,393 745,505 567,370 1,751,464 1,751,464 1,775,717
Total governmental activities program revenues 2,992,156 4,062,597 3,253,393 5,250,742 5,250,742 8,195,327
Business-type activities:
Charges for services:
Water 1,188,610 1,339,390 1,343,153 1,395,306 1,395,306 1,483,133
Sewer 1,474,474 1,598,717 1,812,585 1,838,949 1,838,949 1,999,333
Storm Sewer 725,029 800,843 803,889 803,417 803,417 799,603
Refuse 713,270 821,628 852,215 939,421 939,421 901,670
Pavilion/Ice Arena 358,645 368,228 363,591 385,748 385,748 65,055
Housing and Redevelopment Authority 348,938 279,860 258,388 255,188 255,188 272,109
Operating grants and contributions 251,885 150,814 216,596 190,442 190,442 561,111
Capital grants and contributions 394,913 142,691 328,515 28,250 28,250 144,076
Total business-type activities program revenues 5,455,764 5,502,171 5,978,932 5,836,721 5,836,721 6,226,090
Total primary government program revenues $ 8,447,920 $ 9,564,768 $ 9,232,325 $ 11,087,463 $ 11,087,463 $ 14,421,417
Net (Expense)/Revenue
Governmental activities $ (11,985,789) $ (11,412,023) $ (12,243,262) $ (11,561,944) $ (11,561,944) $ (11,048,497)
Business-type activities 169,921 431,655 837,981 564,403 564,403 527,221
Total primary government net expense $ (11,815,868)$ (10,980,368)$ (11,405,281)$ (10,997,541)$ (10,997,541)$ (10,521,276)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes $ 9,497,650 $ 9,353,966 $ 9,827,813 $ 9,952,156 $ 9,952,156 $ 10,565,115
Tax Increments 1,186,395 1,636,609 2,147,517 2,239,668 2,239,668 2,002,607
Unrestricted grants and contributions 434,163 309,609 306,215 312,519 312,519 21,152
Unrestricted investment earnings 387,424 170,960 121,229 108,956 108,956 105,213
Gain on sale of capital assets 16,150 9,796 - 42,343 42,343 34,651
Transfers 145,000 145,000 145,000 145,000 145,000 145,000
Total governmental activities 11,666,782 11,625,940 12,547,774 12,800,642 12,800,642 12,873,738
Business-type activities:
Property taxes - - - - - -
Unrestricted investment earnings 21,714 12,841 9,138 8,319 8,319 18,788
Gain on sale of capital assets - 367 - 26,879 26,879 21,855
Loss on disposal of capital assets (106,924) (12,048)- - - -
Transfers (145,000) (145,000) (145,000) (145,000) (145,000) (145,000)
Total business-type activities (230,210) (143,840) (135,862) (109,802) (109,802) (104,357)
Total primary government $ 11,436,572 $ 11,482,100 $ 12,411,912 $ 12,690,840 $ 12,690,840 $ 12,769,381
Change in Net Position
Governmental activities (319,007) 213,917 304,512 1,238,698 1,238,698 1,825,241
Business-type activities (60,289) 287,815 702,119 454,601 454,601 422,864
Total primary government $ (379,296)$ 501,732 $ 1,006,631 $ 1,693,299 $ 1,693,299 $ 2,248,105
132
Schedule 2
Fiscal Year
2014 2015 2016 2017
$ 2,276,155 $ 6,656,991 $ 10,341,183 $ 6,751,459
6,526,230 6,665,974 8,561,759 8,126,086
171,187 185,248 185,301 179,916
5,709,009 4,542,014 5,168,939 5,932,978
2,247,553 1,249,457 1,398,736 1,354,036
1,941,912 2,068,887 2,231,605 2,737,116
711,697 688,155 952,756 1,335,290
19,583,743 22,056,726 28,840,279 26,416,881
1,540,940 1,699,540 1,878,807 1,871,868
2,042,106 2,061,180 2,251,291 2,406,027
508,686 394,707 397,660 460,771
834,113 848,685 867,823 874,750
460,246 462,771 483,035 547,831
625,667 610,318 616,653 591,895
6,011,758 6,077,201 6,495,269 6,753,142
$ 25,595,501 $ 28,133,927 $ 35,335,548 $ 33,170,023
$ 56,635 $ 82,686 $ 72,716 $ 175,390
118,248 79,415 274,661 172,584
57,235 47,085 58,264 59,645
96,573 127,221 125,749 125,046
242 220,027 190,199 146,491
740,147 810,762 770,466 788,549
2,943,889 4,970,313 4,087,923 8,007,553
2,728,416 501,029 1,109,278 1,731,738
6,741,385 6,838,538 6,689,256 11,206,996
1,497,699 1,514,086 1,526,290 1,837,434
2,025,763 2,172,277 2,215,251 2,698,307
802,898 805,542 810,142 809,262
906,387 910,672 959,258 956,056
31,914 24,876 22,275 37,080
256,884 277,885 282,125 294,000
795,199 622,332 721,677 697,635
- - 702,555 -
6,316,744 6,327,670 7,239,573 7,329,774
$ 13,058,129 $ 13,166,208 $ 13,928,829 $ 18,536,770
$ (12,842,358) $ (15,218,188) $ (22,151,023) $ (15,209,885)
304,986 250,469 744,304 576,632
$ (12,537,372)$ (14,967,719)$ (21,406,719)$ (14,633,253)
$ 11,207,914 $ 11,038,746 $ 11,994,436 $ 12,895,910
2,700,110 2,920,681 2,959,459 2,146,730
20,510 20,510 20,510 20,510
193,546 279,418 124,406 168,437
27,235 27,535 62,013 69,883
493,093 (864,187) (2,089,914) (3,533,235)
14,642,408 13,422,703 13,070,910 11,768,235
-64,161 63,519 -
24,503 23,477 13,231 20,760
- - 9,776 (54)
- - - -
(493,093) 864,187 2,089,914 3,533,235
(468,590) 951,825 2,176,440 3,553,941
$ 14,173,818 $ 14,374,528 $ 15,247,350 $ 15,322,176
1,800,050 (1,795,485) (9,080,113) (3,441,650)
(163,604) 1,202,294 2,920,744 4,130,573
$ 1,636,446 $ (593,191)$ (6,159,369)$ 688,923
133
City of Hopkins
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2008 2009 2010 2011
General Fund
Reserved $ 111,806 $ 196,790 $ 182,211 $ -
Unreserved 3,884,309 3,930,996 4,071,049 -
Nonspendable - - - 174,487
Assigned - - - 591,676
Unassigned - - - 4,266,048
Total general fund $ 3,996,115 $ 4,127,786 $ 4,253,260 $ 5,032,211
All other Governmental Funds
Reserved reported in:
Special Revenue Funds $ 3,189,829 $ 3,528,529 $ 2,844,901 $ -
Capital Projects Funds - - - -
Debt Service Funds 3,250,202 6,021,748 4,850,159 -
Unreserved reported in:
Special Revenue Funds 955,772 (24,957) 590,281 -
Capital Projects Funds 1,381,657 1,264,405 3,572,002 -
Nonspendable - - - 2,674,342
Restricted - - - 5,823,862
Committed - - - 926,349
Assigned - - - 2,502,336
Unassigned - - - (1,916,865)
Total all other governmental funds $ 8,777,460 $ 10,789,725 $ 11,857,343 $ 10,010,024
Total all funds $ 12,773,575 $ 14,917,511 $ 16,110,603 $ 15,042,235
Note: The City began to use new categories of fund balance when it implemented GASB 54 in 2011.
Prior years were not retroactively reclassified.
134
Schedule 3
Fiscal Year
2012 2013 2014 2015 2016 2017
$- $- $- $- $- $ -
- - - - - -
196,500 231,608 213,499 227,113 87,263 135,373
508,767 426,768 339,055 340,189 340,857 245,494
4,488,876 4,823,141 5,184,081 5,439,798 5,437,774 5,471,420
$ 5,194,143 $ 5,481,517 $ 5,736,635 $ 6,007,100 $ 5,865,894 $ 5,852,287
$- $- $- $- $- $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
1,718,341 1,495 201 204 - -
6,312,043 5,199,415 12,683,242 16,720,476 15,207,736 13,114,006
2,679,389 4,509,026 4,574,733 4,882,609 5,034,095 5,157,831
4,785,717 3,313,086 4,162,299 1,249,239 - 1,655,606
(2,090,788) (2,011,214) (2,029,619) (1,960,918) (2,789,907) (1,536,968)
$ 13,404,702 $ 11,011,808 $ 19,390,856 $ 20,891,610 $ 17,451,924 $ 18,390,475
$ 18,598,845 $ 16,493,325 $ 25,127,491 $ 26,898,710 $ 23,317,818 $ 24,242,762
135
City of Hopkins
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2008 2009 2010 2011
Revenues
Property Taxes $ 8,844,113 $ 9,377,127 $ 9,795,318 $ 10,038,514
Tax Increments 1,186,395 1,636,535 2,147,517 2,239,668
Special Assessments 1,120,741 1,071,406 1,128,467 1,446,922
Intergovernmental 1,053,405 1,220,766 1,215,163 1,931,333
Licenses and Permits 744,502 820,031 623,492 691,962
Charges for Services 872,388 875,470 800,115 908,106
Fines and Forfeits 188,003 148,172 138,894 174,303
Investment Earnings 318,074 135,569 106,128 94,409
Miscellaneous 709,915 1,024,879 589,604 701,683
Total revenues 15,037,536 16,309,955 16,544,698 18,226,900
Expenditures
Current:
General Government 1,590,347 1,552,712 1,576,676 1,598,885
Public Safety 5,779,047 5,888,481 5,881,633 5,895,640
Health and Welfare 232,163 273,760 177,732 168,202
Highways and Streets 2,224,338 2,139,351 2,082,853 2,337,018
Urban Redevelopment and Housing 935,402 1,586,083 1,881,610 2,826,172
Culture and Recreation 1,289,323 1,278,108 1,339,695 1,510,024
Capital outlay 1,228,755 1,556,121 1,358,792 1,972,143
Debt Service
Principal 1,705,000 1,805,000 4,665,000 2,065,000
Interest and fiscal charges 1,100,211 1,037,372 953,232 852,184
Bond Issuance Costs - 34,972 49,233 -
Total expenditures 16,084,586 17,151,960 19,966,456 19,225,268
Excess (deficiency) of revenues
over expenditures (1,047,050) (842,005) (3,421,758) (998,368)
Other Financing Sources (Uses)
Sale of Property - 341 - -
Proceeds from Issuance of Debt - 2,865,000 4,515,000 -
Discount on Debt - (24,400) (45,150) -
Premium on Debt - - - -
Refunded bond payment - - - (215,000)
Transfer In 1,043,155 1,088,875 7,808,068 1,504,822
Transfer Out (898,155) (943,875) (7,663,068) (1,359,822)
Total other financing sources (uses) 145,000 2,985,941 4,614,850 (70,000)
Net change in fund balances $ (902,050)$ 2,143,936 $ 1,193,092 $ (1,068,368)
Debt service as a percentage of
noncapital expenditures 18.9 % 18.2 % 30.2 % 16.90 %
Note: Capital outlay has been adjusted for items not shown as capital expenditures on the entity wide statements and reclassified to their
respective expenditure category.
136
Schedule 4
Fiscal Year
2012 2013 2014 2015 2016 2017
$ 10,403,945 $ 10,600,854 $ 11,212,334 $ 11,190,091 $ 12,181,695 $ 13,089,431
2,332,863 2,002,607 2,700,110 2,920,681 2,959,459 2,146,730
1,307,949 1,634,903 1,202,401 1,003,444 1,404,258 1,753,923
1,549,464 3,775,172 3,272,977 2,234,195 2,698,372 3,743,694
476,296 649,672 569,585 489,373 686,785 811,826
787,724 884,354 835,960 848,775 1,000,847 1,008,699
253,530 251,170 229,807 258,924 223,131 230,804
94,235 94,024 172,012 257,543 115,925 157,870
1,881,347 1,343,592 1,148,505 1,474,048 1,870,874 2,463,487
19,087,353 21,236,348 21,343,691 20,677,074 23,141,346 25,406,464
4,038,893 2,019,932 2,126,004 2,586,582 2,886,837 3,285,079
6,144,206 6,089,431 6,154,320 6,253,424 6,718,046 7,154,007
136,169 164,237 167,088 176,248 181,666 177,734
2,193,209 4,709,377 4,495,659 3,180,023 3,797,748 4,546,602
2,348,694 1,979,001 2,192,453 1,219,526 1,337,387 1,306,327
1,581,886 1,688,876 1,747,614 1,851,741 2,016,229 2,107,616
2,470,049 4,272,737 2,144,714 8,789,979 7,325,037 11,753,941
1,635,000 3,265,000 1,970,000 8,570,000 3,075,000 3,080,000
819,238 853,433 709,367 646,387 855,114 1,050,401
- - - - - -
21,367,344 25,042,024 21,707,219 33,273,910 28,193,064 34,461,707
(2,279,991) (3,805,676) (363,528) (12,596,836) (5,051,718) (9,055,243)
- - - - - -
5,985,000 1,920,000 8,240,000 18,735,000 12,310,000 13,530,000
(12,830) - - - - -
65,705 42,010 214,606 425,129 452,971 1,352,173
- - - (3,927,887) (7,305,660) (3,678,549)
4,788,179 2,948,556 9,351,659 8,513,635 8,112,133 12,157,526
(4,989,453) (3,210,410) (8,858,566) (9,377,822) (12,098,618) (15,690,761)
5,836,601 1,700,156 8,947,699 14,368,055 1,470,826 7,670,389
$ 3,556,610 $ (2,105,520)$ 8,584,171 $ 1,771,219 $ (3,580,892)$ (1,384,854)
13.00 % 19.80 % 13.70 % 37.60 % 18.80 % 18.20
137
Schedule 5
City of Hopkins
Assessed and Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Less: Total Taxable
Payable Residential Apartment Commercial Industrial Other Tax-Exempt Market Total Direct
Year Property Property Property Property Property Property Value Tax Rate
2008 $ 1,061,645 257,275 352,028 198,808 306 182,899 1,687,163 45.570
2009 1,017,790 266,458 395,842 192,138 1,815 182,899 1,691,144 47.574
2010 922,267 251,418 404,674 168,803 1,503 177,975 1,570,690 49.377
2011 883,348 251,141 397,506 173,349 1,272 179,699 1,526,917 56.463
2012 816,431 252,968 422,769 174,254 1,492 179,699 1,488,215 59.718
2013 867,012 269,812 405,840 174,255 1,492 179,699 1,538,712 63.819
2014 838,714 277,435 419,190 177,413 1,492 179,699 1,534,545 64.290
2015 917,367 313,183 430,897 181,538 1,506 179,699 1,664,792 62.503
2016 961,676 363,334 439,692 191,925 1,604 179,699 1,778,532 65.581
2017 999,228 406,566 530,859 198,797 1,350 254,549 1,882,251 64.485
Notes:
(1) The direct tax rate is applied to the tax capacity of the property which is calculate by applying a statutory formula to the estimated market value
of the property. The tax capacity is then multiplied by the direct tax rate to determine the city taxes payable on a specific parcel.
(2) Tax exempt property is revalued on a six-year cycle. All other property is revalued on a three year cycle.
141138
Schedule 6
City of Hopkins
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
City Direct Rate Overlapping Rates
Fiscal
Year Basic Rate
General
Obligation Debt
Service Total Direct
School
District
Hennepin
County
Metro
Council Other
Total
Overlapping
Total Direct and
Overlapping Tax
Rate
2008 39.237 6.333 45.570 19.218 38.571 2.562 5.984 66.335 111.905
2009 41.346 6.228 47.574 20.080 40.413 2.579 5.834 68.906 116.480
2010 43.121 6.256 49.377 22.944 42.561 2.612 6.825 74.942 124.319
2011 49.638 6.825 56.463 26.456 45.840 2.949 7.540 82.785 139.248
2012 52.238 7.480 59.718 29.270 48.231 3.084 7.827 88.412 148.130
2013 55.902 7.917 63.819 29.730 49.461 3.242 8.241 90.674 154.493
2014 55.743 8.547 64.290 32.358 49.959 3.335 8.716 94.368 158.658
2015 53.884 8.619 62.503 30.340 46.398 3.006 8.094 87.838 150.341
2016 55.365 10.216 65.581 28.514 45.356 2.899 7.864 84.633 150.214
2017 54.251 10.234 64.485 25.611 44.087 2.821 7.755 80.274 144.759
Source: Hennepin County, Minnesota Taxpayer Services Department
Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service are based on each
year's requirements.
139
Schedule 7
City of Hopkins
Principal Property Taxpayers,
Current Year and Ten Years Ago
2017 2008
Percentage Percentage
of Total of Total
City City
Tax Tax Tax Tax
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Colfin MIdwest NNN Investment, LLC $ 1,754,120 1 7.22 % $ - - - %
Super Valu 1,047,910 2 4.32 1,254,050 1 7.04
Heines Global REIT 9320 EXCEL 891,430 3 3.67 139,350 10 0.78
Greenfield Apartments, LLP 429,388 4 1.77 274,275 2 1.54
Ramsgate Apartments, LLC 292,813 5 1.21 225,000 5 1.26
Southwest Real Estate, Inc 264,848 6 1.09 243,750 3 1.37
The Luther Co., LTD 256,120 7 1.05 - - -
Duke Realty Corporation 243,990 8 1.00 203,250 7 1.14
Westside Property Owner, LLC 227,250 9 0.94 - - -
City Center Ventures, LLC 226,580 10 0.93 - - -
Hopkins Real Estate, LLC - - - 229,250 4 1.29
Opus Northwest, LLC - - - 213,250 6 1.20
Auburn Limited Partnership - - - 156,663 8 0.88
Oak Ridge Country Club - - - 155,670 9 0.87
Total $ 5,634,449 23.20 %$ 3,094,508 17.36 %
Total City 2017/2008 tax capacity $ 24,282,122 17,823,585
Source: Hennepin County, Minnesota Assessor's Office
Notes: Tax capacity is a percentage of total market value. For taxes payable in 2011 and forward these class rates are 1% for residential, 1.25% for apartments and
1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties.
143140
Schedule 8
City of Hopkins
Property Tax Levies and Collections,
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year Fiscal Year of Levy Total Collections to Date
Percentage
Collections
in Percentage Outstanding Percentage
Fiscal Operating Debt Total Tax of Subsequent of Delinquent of Levy
Year Tax Levy Tax Levy Levy Amount Levy Years (5)Amount Levy Taxes Outstanding
2008 7,942,380 1,282,000 9,224,380 8,831,737 95.7 % 133,369 8,965,106 97.2 % 259,274 2.9 % (1)
2009 8,346,114 1,257,000 9,603,114 9,101,458 94.8 % 188,029 9,289,487 96.7 % 313,627 3.4 % (2)
2010 8,733,685 1,267,000 10,000,685 9,533,671 95.3 % 101,357 9,635,028 96.3 % 365,657 3.8 % (3)
2011 9,022,414 1,241,000 10,263,414 9,828,089 95.8 % 185,324 10,013,413 97.6 % 250,001 2.5 % (4)
2012 9,119,591 1,306,400 10,425,991 10,181,764 97.7 % 114,798 10,296,562 98.8 % 129,429 1.5 %
2013 9,219,774 1,306,400 10,526,174 10,319,805 98.0 % 38,113 10,357,918 98.4 % 168,256 1.8 %
2014 9,268,754 1,421,461 10,690,215 10,506,537 98.3 % (28,795) 10,477,742 98.0 % 212,473 2.0 %
2015 9,735,801 1,514,844 11,250,645 11,009,239 97.9 % 21,784 11,031,023 98.0 % 219,622 2.0 %
2016 10,338,764 1,907,878 12,246,642 12,120,075 99.0 % (10,979) 12,109,096 98.9 % 137,546 1.0 %
2017 11,151,866 2,103,366 13,255,232 12,984,829 98.0 %- 12,984,829 98.0 % 270,403
Notes:
(1) In December 2008 the State of MN unalloted $126,391 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $132,883 and
the percentage of levy outstanding would be 1.4%.
(2) For the year 2009 State of MN unalloted $246,865 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $91,797 and
the percentage of levy outstanding would be 0.9%.
(3) For the year 2010 State of MN unalloted $241,193 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $182,339 and
the percentage of levy outstanding would be 1.8%.
(4) For the year 2011 State of MN unalloted $257,696 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $153,757 and
the percentage of levy outstanding would be 1.5%.
(5) During the years 2010-2015 there were a significant number of tax court challenges that resulted in taxes being
rebated to taxpayers resulting in higher delinquent taxes for the years 2008-2015.
-%
141
Schedule 9
City of Hopkins
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Governmental Activities Activities
General HRA Tax Special Total Percentage
Fiscal Obligation Lease Revenue Increment Assessments Capital Revenue Primary of Personal Per
Year Bonds Bonds Bonds Bonds Lease Bonds Government Income Capita
2008 9,855,000 2,565,000 8,135,000 2,690,000 425,000 3,410,000 27,080,000 15.32 % 1,545
2009 9,182,508 2,404,246 10,263,615 2,335,972 391,115 6,262,966 30,840,422 16.79 % 1,764
2010 8,566,973 2,281,799 8,290,713 4,861,298 355,556 5,133,954 29,490,293 16.84 % 1,676
2011 7,951,437 2,154,353 7,265,336 4,362,694 318,241 3,843,183 25,895,244 14.21 % 1,472
2012 10,130,650 - 6,733,274 7,262,674 279,083 4,832,960 29,238,641 15.02 % 1,652
2013 9,388,707 - 4,691,998 8,745,591 237,990 6,054,706 29,118,992 14.23 % 1,623
2014 15,092,501 - 4,095,716 10,123,177 194,868 5,488,002 34,994,264 16.94 % 1,901
2015 15,637,818 - 15,519,181 8,757,855 149,616 4,807,632 44,872,102 20.75 % 2,334
2016 23,522,410 - 17,869,376 8,155,188 102,128 4,422,261 54,071,363 23.94 % 2,812
2017 35,893,456 - 16,852,700 7,547,520 52,675 6,500,290 66,846,641 28.63 % 3,518
Notes: Details regarding the District's outstanding debt can be found in note 9 of the notes to the financial statements.
See the Demographic and Economic Statistics schedule on schedule 14 for personal income
and population data.
142
Schedule 10
City of Hopkins
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General Obligation Bonds
Less Percentage of
General Tax Debt Service Actual Taxable
Fiscal Obligation Improvement Revenue Increment Fund Net Value of Per
Year Bonds Bonds Bonds Bonds Total Balance Bonded Debt Property Capita
2008 12,420,000 2,690,000 5,975,000 8,135,000 29,220,000 3,250,202 25,969,798 1.539 % 1,482
2009 11,586,754 2,335,972 8,667,212 10,263,615 32,853,553 6,021,748 26,831,805 1.587 % 1,535
2010 10,848,772 4,861,298 7,415,753 8,290,713 31,416,536 4,850,159 26,566,377 1.691 % 1,510
2011 10,105,790 4,362,694 5,997,536 7,265,336 27,731,356 4,275,717 23,455,639 1.536 % 1,333
2012 10,130,650 7,262,674 4,832,960 6,733,274 28,959,558 4,618,138 24,341,420 1.636 % 1,375
2013 9,388,707 8,745,591 6,054,706 4,691,998 28,881,002 3,470,747 25,410,255 1.651 % 1,416
2014 15,092,501 10,123,177 5,488,002 4,095,716 34,799,396 10,427,856 24,371,540 1.584 % 1,324
2015 15,637,818 8,757,855 4,807,632 15,519,181 44,722,486 12,244,435 32,478,051 1.951 % 1,689
2016 23,522,410 8,155,188 4,422,261 17,869,376 53,969,235 8,806,091 45,163,144 2.825 % 2,349
2017 35,893,456 7,547,520 6,500,290 16,852,700 66,793,966 5,713,084 61,080,882 3.338% -
Notes:
Details regarding the city's outstanding debt can be found in note 9 of the notes to the financial statements
See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data
See the Demographic and Economic Statistics schedule 14 for population data
G.O Improvement bonds are included as they are backed by a general tax levy and specuial assessements levied against benefitted properties
G.O. Revenue bonds are included as they are backed by the full taxing authority of the City should revenues fall short of debt requirements
G.O. Tax Increment bonds are included as they are backed by property taxes levied against the properties benefitting from specific development for which the bonds were issued.
143
Schedule 11
City of Hopkins
Direct and Overlapping Governmental Activities Debt
As of December 31, 2017
Estimated
Estimated Share of
Net Debt Percentage Overlapping
Outstanding Applicable (a)Debt
Debt repaid with property taxes:
School Districts:
Hopkins ISD 270 $ 143,265,000 16.15 % $ 23,137,298
St. Louis Park ISD 283 35,010,000 0.48 % 168,048
Other Debt:
Hennepin County 1,110,220,000 1.12 % 12,434,464
Hennepin Suburban Park District 68,265,000 1.56 % 1,064,934
Hennepin Regional RR Authority 31,535,000 1.56 % 491,946
Metropolitan Council 1,484,038,432 0.57 % 8,459,019
Subtotal - overlapping debt 45,755,709
City of Hopkins Direct Debt (b,c) 60,346,351 100 % 60,346,351
Total Direct and Overlapping Debt:$ 106,102,060
Source: Hennepin County, Minnesota Taxpayer Services
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule shows the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process
recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying
the debt, of each overlapping government.
(a) The percentage of overlapping debt applicable is estimated using the taxable market values. Applicable percentages were estimated by
determining the portion of the county's and school district's taxable market value that is within the City's boundaries.
(b) City of Hopkins direct debt includes long-term debt instruments of the City which are bonds and capital leases of the government.
(c) Net Debt Outstanding excludes revenue bonds.
144
Schedule 12
City of Hopkins
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
Legal Debt Margin Calculation for Fiscal Year 2017
Market value $ 1,829,600
Debt limit (3% of market value) 54,888
Debt applicable to limit:
General Obligation Bonds 26,270
Less: Amount set aside for repayment of
general obligation debt (1,869)
Total net debt applicable to limit 24,401
Legal debt margin $ 30,487
Fiscal Year
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debt limit $ 50,615 $ 50,734 $ 47,121 $ 43,806 $ 42,189 $ 46,161 $ 46,036 $ 48,168 $ 51,633 $ 54,888
Total net debt applicable to limit 9,263 8,772 10,144 9,549 9,402 8,903 8,736 14,661 21,761 24,401
Legal debt margin $ 41,352 $ 41,962 $ 36,977 $ 34,257 $ 32,787 $ 37,258 $ 37,300 $ 33,507 $ 29,872 $ 30,487
Total net debt applicable to the limit
as a percentage of debt limit 18.30% 17.29% 21.53% 21.80% 22.29% 19.29% 18.98% 30.44% 42.15% 44.46%
145
Schedule 13
City of Hopkins
Pledged Revenue Coverage
Last Ten Fiscal Years
Water Revenue Bonds Sewer Revenue Bonds Storm Sewer Revenue Bonds
Fiscal Debt Service Debt Service Debt Service
Year Revenue Principal Interest Coverage Revenue Principal Interest Coverage Revenue Principal Interest Coverage
2008 1,188,610 130,000 69,699 5.95 - - - - 725,029 365,000 98,846 1.57
2009 1,339,390 140,000 53,440 6.92 - - - - 800,843 365,000 79,437 1.56
2010 1,342,073 1,000,000 56,211 1.27 1,812,585 - 21,501 84.30 803,889 280,000 46,791 1.80
2011 1,395,306 200,000 45,225 5.69 1,838,949 50,000 33,750 21.96 803,417 1,025,000 41,050 2.46
2012 1,534,221 210,000 41,125 6.11 2,150,594 60,000 32,650 23.21 799,938 180,000 26,823 0.75
2013 1,483,283 260,000 50,010 4.78 1,999,483 70,000 34,396 19.15 799,603 205,000 29,585 3.87
2014 1,497,699 265,000 68,704 4.49 2,025,763 70,000 46,193 17.43 802,898 205,000 36,745 3.41
2015 1,514,086 320,000 56,360 4.02 2,172,277 100,000 41,318 15.37 805,542 235,000 29,879 3.32
2016 1,526,290 145,000 47,423 7.93 2,215,251 105,000 36,219 15.69 810,142 110,000 25,737 3.04
2017 1,837,584 145,000 60,270 8.95 2,698,457 105,000 35,730 19.17 834,262 115,000 24,254 5.97
Notes: Details regarding the City's outstanding debt can be found in Note 9 of the notes to the financial statements.
146
Schedule 14
City of Hopkins
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per
Income (2)Capita
Fiscal (thousands Personal School Unemployment
Year Population (1)of dollars)Income (2)Enrollment (3)Rate (4)
2008 17,526 176,035 44,364 9,308 6.4
2009 17,481 182,075 45,459 9,333 6.7
2010 17,591 174,808 43,265 9,241 6.5
2011 17,591 180,988 44,489 9,107 5.5
2012 17,701 193,488 47,136 8,556 5.1
2013 17,939 203,498 49,147 8,555 4.3
2014 18,413 206,789 49,460 8,489 3.8
2015 19,227 216,218 51,244 8,495 3.1
2016 19,227 225,882 53,121 8,327 3.8
2017 19,000 233,465 53,166 8,182 3.6
Sources: (1) Metropolitan Council, except for 2010 and 2011 which is per the U.S. Census.
(2) U.S. Department of Commerce Bureau of Economic Analysis data for Minnesota Metropolitan Area
(3) Minnesota Department of Education and is for public and non-public schools in Hopkins School District #270
(4) Minnesota Department of Employment and Economic Development, based on December rates
147
Schedule 15
City of Hopkins
Principal Employers,
Current Year and Ten Years Ago
2017 2008
Percentage Percentage
of Total of Total
Taxpayer Employees Rank Employment Employees Rank Employment
Cargil 1,400 1 8.732 % 900 3 7.765 %
ISD 270 Hopkins (1) 1,332 2 8.308 1,800 1 15.531
SuperValu 900 3 5.613 1,500 2 12.942
Thermotech 400 4 2.495 235 6 2.028
U.S. Post Office 314 5 1.958 - - -
US Bank 185 6 1.154 - - -
Oak Ridge Country Club 185 7 1.154 200 7 1.726
Augustana Chapel View Care Center 185 8 1.154 250 5 2.157
City of Hopkins 150 9 0.936 135 9 1.165
Walser Chrysler Jeep 100 10 0.624 - - -
GE Water & Process Technologies - - - 550 4 4.745
Rudy Luther's Hopkins Honda - - - 200 8 1.726
Hopkins Care Center - - - 125 10 1.079
Total 5,151 32.128 % 5,895 50.864 %
Source: Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State Business Directory
Notes:
(1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
148
Schedule 16
City of Hopkins
Full-Time Equivalent City Employees by Type
Last Ten Fiscal Years
Full-time-Equivalent Employees as of December 31, 2017
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Government
Administrative Services 5.05 4.95 4.80 4.80 4.95 5.00 5.00 5.00 5.05 5.50
Finance 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.00 5.00
Municipal Building 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45
Community Services 9.85 9.95 9.95 9.95 9.80 9.80 9.70 9.70 8.65 7.20
Public Safety
Police 39.45 40.00 39.00 40.00 39.50 36.45 34.50 36.50 36.78 38.45
Fire 1.20 1.20 1.20 1.20 1.20 1.25 1.25 1.25 3.25 3.25
Public Works 18.60 18.70 17.77 17.25 17.69 17.69 17.09 18.09 17.58 18.09
Recreation
Activity Center 3.30 3.30 3.30 3.30 3.20 3.20 3.20 3.20 3.25 3.20
Skate Park 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Planning & Zoning 1.15 1.15 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35
Community Development - - - - 0.85 0.85 0.85 0.85 1.50 0.85
Total General Government 84.70 85.35 83.47 83.95 83.79 81.69 79.04 82.04 82.91 84.39
Special Revenue Funds
Economic Development 1.78 1.75 1.75 1.60 1.60 1.15 1.60 1.60 1.25 1.60
Paratransit 0.20 0.20 - - - - - - - -
Housing Rehabilitation 0.85 0.85 0.85 0.85 - - - - - -
Parking 1.00 1.00 1.00 1.00 0.72 0.72 0.72 1.00 0.72 0.72
Section 8 - - - - - - - - - -
Communication 0.10 0.10 0.40 0.25 0.25 0.25 0.25 0.25 0.75 1.25
Depot Coffee House 1.00 1.00 1.00 1.50 1.50 2.50 2.50 2.50 5.25 5.25
Art Center 4.05 4.05 4.05 4.55 4.30 3.80 3.80 4.30 4.30 4.30
Total Special Revenue Funds 8.98 8.95 9.05 9.75 8.37 8.42 8.87 9.65 12.27 13.12
Enterprise Funds
Water 3.76 3.67 3.11 3.11 3.13 3.13 3.13 3.43 2.60 3.43
Sanitary Sewer 4.07 4.08 3.44 3.44 3.46 3.46 3.46 3.76 3.40 3.76
Refuse 4.09 4.12 3.40 3.58 3.89 3.89 3.89 3.89 4.09 4.09
Storm Sewer 0.46 0.46 0.42 0.42 0.63 0.63 0.63 0.63 0.43 0.63
Pavilion/Ice Arena 3.80 3.80 3.05 2.45 2.40 2.40 2.40 2.90 2.90 2.90
Housing and Redevelopment 2.05 2.05 2.05 2.20 2.20 2.20 2.20 2.20 2.40 2.40
Total General Government 18.23 18.18 15.47 15.20 15.71 15.71 15.71 16.81 15.82 17.21
Total 111.91 112.48 107.99 108.90 107.87 105.82 103.62 108.50 111.00 114.72
Source: City Finance Office
149
City of Hopkins
Operating Indicators by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2008 2009 2010 2011 2012
General Government
Elections 2 1 2 1 2
Registered voters 11,233 9,548 9,393 9,691 10,912
Number of votes cast 8,835 861 5,761 961 9,130
Voter participation (registered)78.70%9%61.30%9.90%83.70%
Public Safety
Police
Total Calls for Service 19,440 19,238 19,141 21,257 25,379
Sworn Officers 26 26 26 26 26
Traffic Stops 3,042 2,698 2,597 5,231 7,602
Parking Citations 647 925 914 864 958
Fire
Fires 45 38 58 40 36
False Alarm 101 107 98 95 91
Fire Runs 291 220 370 331 382
Medical Runs 67 56 66 77 141
Average Response Time (minutes) 4.0 4.2 4.0 4.0 4.0
Inspections
Building Permits 897 381 4 631 501
Value of Building Permits $ 45,074,024 $ 54,688,290 $ 10,968,955 $ 19,211,258 $ 9,804,196
Public Works
Miles of seal coating 2.60 0.55 0.95 0.85 5.36
Miles of crack sealing 4.97 3.71 1.99 7.26 4.13
Sidewalk repairs in square feet 4,930 6,228 5,252 5,831 5,770
Alley repairs in square yards 238 142 170 200 201
Culture and Recreation
Art Center
Bookings 5,593 5,392 4,913 4,307 307
Reserved Hours 34,760 33,780 30,414 26,406 26,406
Customer Visits for Events/Activities 212,000 203,100 205,319 219,975 219,975
Water
Gallons of water pumped (in millions) 774 813 794 744 1
Number of well house inspections 2,488 2,484 2,501 2,446 2,480
Number of hydrants flushed 100+ 130 144 151 142
Water Rate - Tier One $ 1.65 $ 1.86 $ 1.90 $ 1.90 $ 1.96
Water Rate - Tier Two
Water Rate - Tier Three
Sanitary Sewer
Sanitary sewage flow (in millions of gallons) 626.2 580.2 567.8 606.5 601.9
Miles of sewer lines jetted 14.6 14.2 15.4 14.6 14.7
Number of manholes checked/cleaned 344 1,290 1,301 1,421 1,337
Lift Station Maintenance checks 3,855 4,312 4,310 4,321 4
Sewer Rate $ 2.70 $ 3.10 $ 3.40 $ 3.60 $ 3.75
Refuse
Number of refuse accounts 2,678 2,689 2,695 2,687 2,681
Tons of refuse collected 2,393 2,335 2,298 2,265 2,470
Tons of recycled material (residential) 1,080 1,194 1,148 1,222 1,182
Refuse rate $ 13.20 - 17.25 $ $15.85-21.85 $ 15.85-21.85 $ 15.85-21.85 $ 15.85-21.85
Recycling rate $ 3.25 $ 3.50 $ 3.75 $ 3.75 $ 4.00
Pavilion/Ice Arena
Ice time rental hours 1,469 1,456 1,455 1,407 1,429
Turf use hours 479 624 624 758 869
Mezzanine rental use 400 495 776 1,150 1,260
Source: Various City Departments
Notes:
(1) Information not available is labeled N/A..
(2) In 2009 the Sewer Department began checking manholes on a monthly basis.
150
Schedule 17
Fiscal Year
2013 2014 2015 2016 2017
1 2 1 2 1
9,917 109,123 9,647 10,418 10,366
1,674 9,130 1,058 9,198 2,164
16.90%83.70%11.0%88.3%20.9%
25,286 26,140 23,535 24,549 26,724
26 26 28 27 27
6,333 5,741 6,055 6,910 6,232
979 820 725 640 662
38 51 18 81 43
101 100 103 130 123
382 428 467 566 415
178 195 177 1,277 973
4.2 4.2 4.4 4.2 4
509 455 501 451 485
$ 44,183,445 $ 16,453,935 $ 12,631,596 $ 76,838,870 $ 19,553,988
..
5.49 5.26 1.81 1.05 1.32
3.75 5.85 5.26 1.54 2.22
5,172 4,482 6,800 6,286.00 10,260.00
190 41 182 180 1,235.00
4,440 4,747 5,013 4,981 4,761
27,442 29,440 31,759 31,320 32,993
213,487 215,371 216,450 211,969 220,032
817 812 751 787 760
2,465 2,510 2,190 2,450 1,095
138 150 120 139 139
$ 2.02 $ 2.10 $ 2.18 $ 2.18 $ 2.44
$ 2.81
$ 3.23
579.0 628.6 615 605 598
16.2 14.6 12 15 15
1,413 1,400 274 1,025 274
4,307 4,401 4,350 4,283 1,945
$ 3.90 $ 4.10 $ 4.30 $ 4.30 $ 5.81
2,706 2,709 2,735 2,692 2,874
2,136 2,393 2,368 2,095 2,215
757 1,114 1,106 166 966
$ 16.85 - 24.30 $ 16.85 - 24.30 $ 16.85 - 24.30 $ 16.85 - 24.30 $ $17.85-25.30
$ 4.25 $ 4.25 $ 4.50 $ 5.00 $ 5.00
1,401 1,370 1,365 1,284 1,385
865 810 818 749 682
1,386 2,147 2,822 2,847 7,315
151
Schedule 18
City of Hopkins
Capital Asset Statistics by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 10 10 11 11 11 11 11 11 11 11
Fire
Stations 1 1 1 1 1 1 1 1 1 1
Public Works
Highways (miles) 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57
County Highways 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32
City Streets (miles) 47.50 47.50 47.50 47.50 47.50 47.50 47.50 47.50 47.50 47.5
Alleys (miles) 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52
Streetlights 360 398 398 398 398 398 398 398 398 398
Traffic Signals 44 44 44 44 44 44 44 44 44 44
Refuse collection trucks 3 3 3 3 3 3 3 3 3 3
Culture & Recreation
Parks
Parks 16 16 16 16 16 16 16 16 16 16
Park Trails 4 4 4 4 4 4 4 4 4 4
Park Acres 104 104 104 104 104 104 104 104 104 104
Park Shelters 10 10 10 11 11 11 11 11 11 11
Playgrounds 11 11 11 11 11 11 11 11 11 11
Skateboard Park/Inline Skating 1 1 1 1 1 1 1 1 1 1
Skating Rinks 7 7 7 7 7 7 7 7 7 7
Hockey Rinks 6 6 5 5 5 5 5 5 5 5
Basketball Courts 6 6 6 6 6 6 6 6 6 6
Softball Fields 4 4 4 4 4 4 4 4 4 4
Swimming Beach 1 1 1 1 1 1 1 1 1 1
Tennis Courts 8 8 8 8 8 8 8 8 8 8
Volleyball Courts 2 2 2 2 2 2 2 2 2 2
Watermains
Distribution System (miles) 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.6
Fire Hydrants 560 560 560 560 560 560 560 560 560 560
Storage Capacity (gallons in thous) 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3200 3200
Water Connections 3,163 3,163 3,168 3,168 3,168 3,168 3,168 3,168 3168 3168
Sanitary Sewer
Collection System (miles) 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46
Sewer Connections 3,081 3,081 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086
Storm Sewer
Pipe (miles) 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40
Parking
Parking Lots 7 7 7 7 7 7 7 7 7 7
Parking Ramp 1 1 1 1 1 1 1 1 1 1
Source: Various City Departments
152