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2007 City of Hopkins, MN Budget2007 BUDGET CITY OF HOPKINS, MINNESOTA Think HoDkins Business Education Arts 1010 First Street South Hopkins, MN 55343 January 2007 lt# o f ofopktns 1010 cfdtst &teet joutk. pfiopkuis, die' 55343 -7573 cf/aone: 952- 935 -8574 (fax: 952 935 -1834 cWeb address: www./to�Okinsnxrs.�:r3r Citizens, Honorable Mayor, City Council City of Hopkins Hopkins, Minnesota 55343 Dear Citizens, Mayor and Council Members: It is my pleasure to present to you the City of Hopkins 2007 Budget. Hopkins' strong financial position and proactive fiscal management practices allowed options for the City Council to maintain a service delivery at current levels while minimizing the impact on the 2007 tax levy. The final result is an adopted 2007 budget that lives within the City's financial resources, meets basic service needs, provides for the maintenance and replacement of the City's infrastructure, and plans for the future, keeping Hopkins' good financial condition intact. The Municipal Budget is intended to reflect the goals, objectives, and priorities established by the City Council with input from the residents and taxpayers of Hopkins, and fairly represents the revenues and expenditures necessary to provide the services and programs desired by the community. The City of Hopkins is fully developed. Challenges exist for redevelopment and building community. The city governing body involves its' citizens and constituents through its mission and vision statement by: conducting a citizen's academy, providing a state of the city address, publishing a city annual report, and communicating with the community as often as possible regarding many city initiatives and proposed polices. The budget adoption is a significant way in which the City Council expresses their leadership_ The City Council establishes budget goals, which are accurately reflected in this budget. 2007 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Program Budgeting This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. Four Year Budget Modeling Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. d'attnetin,i with the Community to Enhance the QualiQ/ o f i fiie (Inspire d {ducate Involve Communicate 2 CITY OF HOPKINS Cash Flow Models Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. Net Property Tax Cost for Sample Properties Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. Net Tax Cost by Program This provides both a dollar and percentage of property tax support for each of the City's general fund programs. HOPKINS IN 2007 In the year 2006, the nation's economy experienced some growth. However, the governmental environment was to maintain staff and minimize budget increases. The city continued to provide all core services through 2006. The City held the line on expansion of staffing and capital expenditures that along with retirements allowed us to maintain a balanced budget. Program budgeting has helped in our analysis of city services, while we look at ways to continue to do more with less. The Council and staff will also continue to investigate additional revenue sources. In 2006, the City's tax base continued to grow. Redevelopment of properties in Hopkins helped to increase our tax base, which increased our tax capacity. The levy has gone up an average of 5.9% per year for the last five years. The above average increases in the levy are attributed to the loss of intergovernmental revenues from the state and a $890,000 levy for the new fire, public works and police facilities. The City's general fund expenditures have increased an average of 3% a year over the last five years. This increase is directly related to salary and benefit increases for employees, insurance costs and oil based products. Diligent planning and management has helped in keeping operating expenditures down. The employee compensation has remained competitive in the market for both those with and those without labor contracts. The number of employees has remained stable at 110. We will be adding one additional dispatcher and enhancing the emergency response program for 2007. However, the City will not be adding an extra employee since the majority of the payroll costs for the new dispatcher are being funded through the reduction in the number of part -time parking enforcement officers in the Police Department from 2 to 1. ECONOMIC OUTLOOK Minnesota's overall economy is one of the strongest in the nation. Thirteen Fortune 500 companies are headquartered in Minnesota. Super Valu is the largest food wholesaler in the nation. They are a Fortune 500 company that continues to expand in Hopkins. Another Fortune 500 company with a branch in Hopkins is US Bank. Included with the Fortune 500 companies in Hopkins there is a diverse community made up of a healthy mix of residential, commercial and industrial properties. Hopkins economic outlook is very stable. The City has expanded its commercial tax base through redevelopment. It is also an attractive bedroom community of Minneapolis with new home construction. Hopkins is an inner -ring suburb of Minneapolis with a good mix of 34% residential, 42% commercial and industrial and 22% apartment properties. Hopkins participates fully in the Minneapolis and Hennepin County economies. Hopkins has preserved its central downtown area where development continues because of its highly desirable location. Retail sales are strong at more than 200% of the states and nation's levels. This reflects on the strength of the downtown area. Hopkins wealth levels are above average when compared nationwide. 2007 BUDGET 3 CITY OF HOPKINS REDEVELOPMENT Significant redevelopment has occurred within the City of Hopkins over the past five years. This redevelopment has contributed substantially towards the increase in property values and by making Hopkins a more desirable place to live and work. In 2004 and early 2005 the City of Hopkins completed construction of a new fire station, rebuilt and added onto the public works storage facility and remodeled and expanded the police station. The largest redevelopment project in the city's history is beginning to occur in 2007. The City has been working for several years to redevelop the Red Owl or North Annex site east of Highway 169 on Excelsior Boulevard in Hopkins. It is a 29 -acre parcel that housed several operations for Super Valu over the past decades. The office redevelopment that the City has been seeking for quite some time is now coming to fruition. Cargill has recently announced that they will be taking a very large share of the site for corporate office development. This potential $130 million project, which begins in 2007 and continues into the early part of the next decade, will not only bring over 750,000 square feet of Class A office space to Hopkins, but will also bring over 2,500 new jobs to the City. In addition to this large office development, other development continues in Hopkins. This includes new commercial structures on Mainstreet, renovation of older industrial buildings, new residential projects, and more mixed -use projects that incorporate residential and commercial development. Overall, these redevelopment efforts continue to ensure that Hopkins remains a desirable community to live and work in. LONG TERM OBJECTIVES The City Council and staff have established long term objectives for the community and the working environment Increase ratio of residential properties. Maintain the high quality of our livable community. Increase tax base to spread share of tax burden. BUDGET OBJECTIVES FOR 2007 Maintain core City services at a reasonable price for residents and commercial /industrial users. Use program budgeting as a tool for analysis of all programs and services to: look for ways to reduce dependency on the property tax, find greater efficiencies in the provision of current services and programs, compare staffing levels to workloads to assure proper allocation of resources, create greater linkages between revenues and expenses, to allow for more entrepreneurial approaches to non essential services. Forecast funding needs and tax implications to assure strong long -term financial stability. Continue policy of avoiding the use of fund balances for operating expenses. Recognize and award employees that assist the City in saving money. Evaluate and investigate other sources of revenue. 2007 BUDGET 4 BUDGET CONSIDERATIONS There are areas to consider that may affect the budget during the next few years. State Tax Reform: The state's ongoing budget issues may again affect City finances as well as residential and commercial based taxpayers. Property Classification Changes In the past there has been a tendency to shift some of the tax burden back to residential taxpayers from commercial /industrial taxpayers. This continues with the phase out of limited market value on residential properties. Tax Increment Finance Any changes in property classifications impact property taxes generated by TIF districts. Currently the tax generated in the various districts is projected to be sufficient to cover any debt or liabilities created in the districts. Property Tax Freeze and /or Levy Limits May be considered in the future as a tool to hold down local government spending. Y State Aids In 2002 the state shifted a portion of its aids from local governments to school districts, allowing local governments to levy back the loss. In 2003 the state un- allotted a portion of local government aids without the ability to raise taxes. In 2004 cities were given the authority to levy back 60% of lost local government aid. The trend of reducing local government reliance on state aids is anticipated to continue into the future. Real Estate Values Real estate values in this community continue to increase. This results in an increase in the City's tax capacity, which in turn decreases the overall tax rate. In addition, three tax increment districts were decertified in 2004 adding over $69M in increased value to the general tax base. Overall, expenditures will increase by 4.29% in 2007 with projected increases of about 3% in 2008 and 3% a year into the future. Future programs and services provided by the City of Hopkins may change in relation to available revenue sources. The City Council and staff continue to work on budget solutions in light of decreases in funding sources. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and reduced potential redevelopment activity. Fund Balances for governmental fund types will continue to be strong for the next 3 to 4 years, absent any significant changes in the policy of avoiding the use of fund balance reserves for current expenditures. GAUGING THE CITY The City uses the following performance measures: Tax levy history in relation to the consumer price index. Sample properties cost per month Comparisons of comparable communities Goal achievement CITY OF HOPKINS 2007 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount, at the same time allowing the City enough funds to continue with the level and quality of service it currently has. In 2003, the City implemented a $550,000 tax levy for the new fire station and 2007 BUDGET 5 CITY OF HOPKINS public works storage facility. In 2004, the City implemented an additional $450,000 tax levy for the remodeling and expansion of its police department facility. At the same time as these new levies were being implemented the state significantly reduced local government aid to the city. These new levies and the loss of state aid have significantly impacted the city's tax rates. The city's tax capacity rate has gone from 32% in 2001 to 57% in 2004 but was reduced to 49% in 2005 largely due to the decertification of three tax increment districts and has been reduced each year thereafter due to growth of the tax base and service efficiencies throughout city government. The 2007 city tax rate is 46 The adopted General Fund budget has a 4.29% expenditure increase for a total General Fund Budget of $9,269,767. The city's tax capacity rate for 2007 shows a decrease of 4.223% from 2006. The total tax levy increase for 2007 is 4.36 The levy includes funds designated for general fund operations and debt service payments. The capital levy was increased to $50,000 and the levy for the Housing and Redevelopment Authority remains at $20,000. The monthly city tax cost for a median valued home, which increased in value by 15% from $189,000 in 2005 to $217,400 in 2006 is approximately $84 or approximately $1,005 for the year. The city's goals and objectives were once again reviewed and updated by city staff, commissions, citizens and the City Council. They are integral part in meeting the needs of the citizens. The goal, objectives and action steps are included in the budget document on pages 13 -14. Sincerely, CITY OF HOP INS Rick Getschow City Manager 6 2007 BUDGET GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Hopkins Minnesota For the Fiscal Year Beginning January 1, 2006 6a,14,./ President Executive Director CITY OF HOPKINS 7 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Hopkins, Minnesota for its annual budget for the fiscal year beginning January 1, 2006. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Community Services Assessing City Clerk Elections Inspections Reception Communications MIS Finance Accounting Payroll Utility Billing Budgeting Real Estate Debt Equipment Replacement Boards Commissions Planning Economic Development Economic Development Housing Planning Zoning Public Housing TIF Districts Parking Paratransit CITY OF HOPKINS CITIZENS CITY COUNCIL City Manager Administration Fire Fire Medical Response Fire Prevention Emergency Preparedness Chemical Assessment 2007 BUDGET 8 City Attorney Police Patrol Investigation Dispatch Crime Prevention Records Public Works Building Maint. Equipment Engineering Parks Forestry Street /Traffic Refuse Water Sewer Facilities Mgmt_ Activity Center Center for the Arts Depot, Skate Park Pavilion /Ice Arena City of Minnetonka Recreation Playgrounds Ice Rinks Joint Recreation 2006 MISSION STATEMENT Educate Continually enhance partnerships with citizens. Inspire citizen leadership. Educate and involve residents. Communicate openly and effectively. Be responsive. Be fiscally responsible CITY OF HOPKINS Inspire Hopkins Partnering with Citizens to Enhance the Quality of Life Communicate Together, all of city government pledges to: As a City Council we pledge to: Continually enhance partnerships with staff. Lead in the creation of a community -wide vision. Set policy. As a staff, we pledge to: 2007 BUDGET 9 Involve Continually enhance partnerships with the City Council. Develop and implement long -term plans. Provide quality customer service that is: o Responsive to the needs of the community. o Innovative. o Accessible. COMMUNITY PROFILE CITY OF HOPKINS The first settlers of Hopkins arrived in 1852; however, the roots of the town begin in 1887 with the building of the Minneapolis Threshing Machine Company, later called Minneapolis Moline. Minneapolis Moline, once employed most of the Hopkins residents. The West Minneapolis Land Company was also founded in 1887 and was formed to build housing for the Minneapolis Moline factory workers. In 1893, the Hennepin County Board of Commissioners received a petition signed by 41 residents, asking that the village be formed. Following an election, the community was then incorporated as the village of West Minneapolis. The original village was comprised of three square miles, and it has been enlarged by annexation to its present size of about four square miles. The population at the time of its incorporation was 1,105; today, there are 17,559 people living in Hopkins. In 1928, the name of the village was changed to Hopkins for Harley H. Hopkins who was among its first homesteaders and was the community's first postmaster. The first mayor was Harley Hopkins' son, Chester L. Hopkins. On January 1, 1948, the village became a city upon adoption of a City Charter with a Council /Manager form of government. The City Council consists of four council members and the mayor. Council members serve four -year terms and are elected at large. The mayor is elected at large for a two -year term. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City's manager and attorney Hopkins has always had a core business district, and in the center of that early business district was Hopkins City Hall at 8th Ave N and Mainstreet. Completed in 1912, it housed the city's police and jail in the rear portions, and city offices, library and meeting room upstairs. The fire station was on the main level, and the firefighters used horse drawn rigs. The building was remodeled in 1940 to accommodate more fire trucks. That fire station was torn down in 1965 after a new City Hall, Police Station and Fire Station were built at 1010 1st St S. In 2004, a new Fire Station was built on 17th Ave. The Police Department was expanded and remodeled in 2005. In the summer of 1982, the city and its Public Works Department accomplished the challenge of building a city garage on a small area, using as many of the existing structures as possible, doing it within a $475,000 budget, and doing it without disrupting city services. The Public Works facility was expanded and remodeled in 2004. Adjacent to the Public Works facilities is the Hopkins Pavilion, which was built with money from a 1989 park bond referendum. The facility opened in December 1991. It is now one of the premier facilities of its kind in the Twin Cities area, and is used for soccer, lacrosse, in -line roller hockey, skating and ice hockey. The Hopkins Activity Center, a multipurpose community facility, opened in January 1981 at the site of the former South Junior High School. A variety of programs for people of all ages are offered at the Activity Center. It was renovated in 1990, and the facility includes a gymnasium, meeting rooms and kitchen. The Hopkins Historical Society, which was started more than 24 years ago, also is located in the Activity Center. The Hopkins Center for the Arts, 1111 Mainstreet, opened in November 1997. The Arts Center stands as a focal point for arts, culture and entertainment in the Hopkins community, the Twin Cities metro area and the region. It is a community gathering place where young and old can enjoy high quality, multi- disciplinary cultural arts programs and community activities. The Arts Center includes a theater, a visual arts gallery, multipurpose spaces for rehearsals, community activities and small performances, a visual arts classroom, a dance studio, and kitchen facilities for serving catered food. It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival. The first festival was organized in 1934 by a group of community business people who were concerned that the Hopkins economy and community needed a boost. This festival is one of the largest in the state. 2007 BUDGET 10 Dated of Incorporation Date of Adoption of City Charter Form of Government Fiscal Year Begins Area of City Miles of Streets and Alleys: Trunk Highways County City Streets Alleys Miles of Sewers: Storm Sewers Sanitary Sewers Miles of Watermains Civil Defense Warning Sirens Fire Protection: Number of Stations Number of Employees Volunteer Police Protection: Number of Stations Number of Employees November 27, 1893 December 2, 1947 Council Manager January 1 4.0 Square Miles 1.6 6.3 55.0 9.9 Housing Single Family 21.4 Multiple Family 43.4 Duplexes Condo /Townhouses 52.6 School Enrollment 3 Education Elementary Schools Middle Schools 1 36 Unemployment Rate 1 41 CITY OF HOPKINS Parks: City Parks Playgrounds Skating Rinks City Bond Rating Standard Poor's AA- Moody's A+ Property Values $1.61 billion 2007 BUDGET 1 1 12 1 18 Elections: Registered Voters last general election 10,621 Number of votes cast last general election 6,279 Election day registrations 1,179 Percentage of registered voters voting 59% 2,382 4,188 486 1,763 7,900 7 3 3.6% 1920 1930 1940 1950 1960 1970 1980 1991 2000 2001 2002 2003 2004 2005 2006 Population: 3,055 3,834 4,100 7,595 11,380 (census) 13,395 (census) 15,336 (census) 16,534 (census) 17,145 17,145 17,250 17,559 17,643 17,675 N/A ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council- manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four -year term and the mayor serves a two -year term. The city manager of the City is the chief administrative officer of the City. The city manager and the city attorney are selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City's affairs and therefore, supervises all departments and divisions of the City. The city attorney provides legal and prosecution services for the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. In addition to the departments the city manager oversees the administration, human resources and management information functions. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer citizens and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Human Rights commission meets monthly and they promote equality and fairness within the community. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. The Chemical Health commission meets monthly and they promote chemical use awareness in the City. There are also several internal committees comprised of department heads and employees to assist in the management of City operations. These include the Labor Management committee, Employee Management committee, Safety committee and Police Review committee. ORGANIZATION GOALS Long -range goals for the City are: o Continually enhance partnerships with citizens. o Inspire citizen leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is: Responsive to the needs of the community. Innovative. Accessible. CITY OF HOPKINS 2007 BUDGET 12 CITY OF HOPKINS Short-term goals are reviewed bi- annually by City Council and staff. The discussion begins with the global environment and ends with prioritizing goals for the near future. Below are the short-term goals for the City and some strategies to implement them. Goal I To Improve Communications and Marketing Efforts to Residents, Developers and Businesses Action 1 Think Hopkins Implement the City -wide Branding and Marketing Campaign as a partnership with the HBCA and Hopkins Marketing Committee Action 2 City Website: 2007 Redesign planned. Explore more E- Government capabilities. Action 3 Monthly Newsletter- Hopkins Highlights: Continue to be a well- received publication delivered to every household Action 4 Collaboration with the official city newspaper (Sun *Sailor) regular city columns Action 5 Enhance the promotion of city events (Raspberry Festival, Mainstreet Days, and Heritage Celebration) Action 6 Conduct a City -Wide survey Action 7 Produce a Printed City Annual Report Action 8 Implement "Action Center" customer service /complaint tracking software Action 9 Continue conducting Annual Citizen Academies and Alumni Events Action 10 Action 11 Comprehensive Plan Update /Revision as a Community Building Tool Research the Construction of a Message Board at the Hopkins Pavilion Goal II Provide and Nurture Growth of Employees and the City Council Action 1 City Council and Board /Commission Orientation Action 2 Explore a City Council Training /Feedback system 2007 -08 GOALS AND OBJECTIVES 13 Goal II Provide and Nurture Growth of Employees and the City Council (continued) Action 3 Research conducting a city -wide Volunteer and Board recognition event Action 4 Monitor the new employee evaluation system Action 5 Action 6 Action 7 Action 1 Action 2 Action 3 Action 4 Action 5 Action 6 2007 BUDGET Initiate an Employee Academy Reinvigorate the Tuition Reimbursement program Implement a City -wide employee training program Goal III Enhance the Budget Process and Increase the Education and Understanding of City Finances Continue with a new budget process whereby department presentations and work sessions are begun after department budgets are submitted and evaluated Conduct a detailed analysis of all city fees Research the Possibility of Conducting a Budget "Boot Camp" Entire Newsletter devoted to the budget Feature Newspaper article on the budget Restart and /or Reinvigorate the Bricks and Benches Programs Goal IV Improve the Quality of Life in Hopkins Facilitate Redevelopment throughout the City Action 1 Downtown Luther property: Work with a developer on a mixed use redevelopment Action 2 Block 64: Work with a developer on a mixed use redevelopment project CITY OF HOPKINS Goal IV Improve the Quality of Life in Hopkins (continued) Goal V- Provide and Nurture Citizen Growth and Development Action 3 Action 4 Action 5 Action 6 Action 7 Action 8 Action 9 Action 10 Action 11 Action 12 Action 13 Action 14 Action 15 Action 16 Action 17 Excelsior Crossings: Coordinate efforts to conduct redevelopment on the site with Opus Northwest, LLC (office project) Shady Oak Road: Coordinate efforts with Hennepin County and the City of Minnetonka to implement a plan or the future redevelopment along the Shady Oak Road Corridor Hopkins Dodge Site: Work with potential developer on a redevelopment of this site. East End Study Implementation Continue with the Nurturing Our Retired Citizens (NORC) Project Implement a Hopkins Police Chaplaincy Program Pursue an upgraded and enhanced Code Enforcement and Rental Licensing Program Continue with the Blake Road Corridor Initiatives Sanitary Sewer Inflow and Infiltration Program Partnership with the Minnesota Pollution Control Agency (MPCA) for Remediation of the Hopkins Closed Landfill Partnership with the Three Rivers Park District for the planned Depot Improvements Enhancement of the City /Regional Trail System (Signage) Research City /Regional Transportation System (Hop -a- Ride, Met Transit) to be assured it is meeting resident needs. Research Downtown Safety Enhancements (Improved Lighting, Ramp Cameras) Neighborhood Park Initiative. Park Board will partner with neighborhoods and neighborhood associations regarding the improvement and enhancement of neighborhood parks 2007 BUDGET 14 Action 1 Neighborhood Association Growth and Development. Research methods to enhance and promote city neighborhood associations. Possibilities include potentially providing training and technical assistance. Action 2 Research the implementation of a Citizen Emergency Response Team (CERT) Program Action 3 Strengthen efforts to involve residents from minority populations in City activities /issues (Blake Corridor, Human Rights Commission) Action 4 Research methods to increase city volunteerism Goal VI Meet with groups /organizations to talk about mutual areas of interest Action 1 Meeting with the Neighborhood Association Presidents /Representatives Action 2 Faith Community Network Action 3 Meeting with the Hopkins School District and School Board Action 4 Action 5 Action 6 Action 7 Action 8 Action 12 Meeting with Legislative representatives (Establish a legislative platform /agenda) Meeting with HAMA (Hopkins Apartment Managers Association) Meeting with the Business Community (HBCA) Meeting with Metropolitan Council Representatives Meeting with Hennepin County Commissioners Action 9 Meeting with City Service Clubs Action 10 Meeting with the City of Edina Council (U.S. Women's Open 2008, Recreation Programs) Action 11 Meeting with the City of St. Louis Park Council Meetings with the City of Minnetonka Council (Shady Oak Road) CITY OF HOPKINS FINANCIAL MANAGEMENT AND POLICIES The City of Hopkins Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices, policies and year -end reporting. BASIS OF ACCOUNTING The accounting system provides for a complete, self balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for City funds. The exception is the proprietary funds, which are on full accrual. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City's financial statements as included in the City's Comprehensive Annual Financial Report at the fund statement level. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The City implemented Governmental Accounting Standards Board (GASB) Statement No. 34 for the year ending December 31, 2003. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City operates on a calendar fiscal year and reports its year -end financial position in a Comprehensive Annual Financial Report (CAFR), prepared by the City's Finance staff. Copies of the 2006 CAFR will be available to the public upon completion in June 2007 and a summary of the results will be published in the official newspaper. The 2006 CAFR will be audited upon completion by the independent auditing firm of KPMG, LLP to insure accuracy and compliance with federal and state laws and regulations. State law provides that the City may arrange for an examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor or by Certified Public Accountants. It has been a long- standing policy of the City to provide for a complete annual audit of the City records by independent Certified Public Accountants. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Hopkins for its CAFR for the fiscal year ended December 31, 2005. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. CAPITAL IMPROVEMENT PROGRAM POLICY The City will develop a multi -year plan for capital improvements and update it annually. The five -year budget capital improvement will be approved and incorporated into the operating budgets. The following years budget will be adopted with the year after that on a cycle consistent with the operating budgets. The City will identify the estimated cost and potential funding sources for each capital project proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed project. The City will make all capital improvements in accordance with the adopted capital improvement program or as amended by the City Council. Capital purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its assets at a level adequate to protect the City's and its citizen's capital investment and to minimize future maintenance and replacement costs. 2007 BUDGET 15 CITY OF HOPKINS EQUIPMENT REPLACEMENT PLAN POLICY The City will develop a multi -year plan for equipment replacement and update it annually. The five -year budget equipment replacement plan will be approved and incorporated into the operating budgets. The following years budget will be adopted with the year after that on a cycle consistent with the operating budgets. The City will identify the estimated cost and potential funding sources for each equipment proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed equipment purchase. New pieces of equipment not previously in the equipment replacement plan must first be financed through the departmental budget and will be placed in the equipment replacement plan the year following the purchase. The City will make all equipment purchases in accordance with the adopted equipment replacement plan or as amended by the City Council. Equipment purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its equipment assets at a level adequate to protect the City's and its citizen's capital investment and to minimize future maintenance and replacement costs. BUDGETARY AND FINANCIAL CONTROL POLICIES A. The council shall have full authority over the financial affairs of the City. B. City manager shall control and direct the administration of the City's affairs. C. The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. D. The manager will prepare and submit to the council at the end of the fiscal year a complete report on the finances and administrative activities of the City for the preceding year; and keep the council advised of the financial condition and future needs of the City. E. The annual budget shall provide a complete financial plan for the budget year by fund. F. The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. G. The city manager shall be the chief purchasing agent of the City. H. The City will maintain an investment policy that invests available funds to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines. Any money in any fund belonging to the City, or any branch thereof, may be invested by the city manager according to policies adopted by the City Council. I. The city manager shall be the chief accounting officer of the City and shall submit to the council a statement each month containing information relative to the finances of the City as the council may require. Each year the city manager shall submit a report to the council, no later than June 30, covering the entire financial operations of the City for the past year. This report shall follow the style and form, as far as practicable, prescribed for annual City financial reports and copies will be made available to interested parties. BUDGET CONTROLS Budgets are financial plans for future events. The budget document is the result of months of work and planning and includes proposed revenues and expenditures for 52 separate funds. These funds are grouped into five major categories. They are: o General Fund o Special Revenue Funds o Enterprise Funds o Internal Service Fund o General Debt Service Funds 2007 BUDGET 16 Budgets are complete financial plans for the future by fund, showing all proposed expenditures and estimates of all anticipated revenues. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. The budget is a public record open to public inspection. The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by resolution. It has been City policy to annually approve a balanced General Fund budget. A balanced budget is a budget in which expenditures are equal to income. Other City funds may or may not have a balanced budget depending on when funding is received for specific expenditure needs. For example a grant may be budgeted for an expenditure that may overlap years. Thus all revenues would be in one year and the expenditures would be in multiple years. Budgets are estimates and may be amended under the following guidelines. CITY OF HOPKINS PREPARATION OF THE ANNUAL BUDGET The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re- appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc... For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the 2007 BUDGET May 10 Meet with Council to set parameters and goals for 2007 budget process June 12 Distribute budget worksheets to departments June 30 Departmental budgets to be completed and returned to finance July 10 July 14 Finance reviews and compiles budget summary July 17 July 21 City Manager Finance to meet with departments to review budgets July 25, Aug 8, 22, 29 Council work sessions to review budgets September 5 City Council adopts preliminary levy and budget September 7 Proposed 2006 budget and levy certified to Hennepin September /October /November Special Revenue Enterprise budgets presented to Council for review and approval December 4 Truth in Taxation public hearing December 19 Final budget approval and tax levy certification December 28 Final 2006 levy certification to Hennepin County CITY OF HOPKINS general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year -end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year -end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. The City follows the procedures below in establishing the budget. 1. The city manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the estimated revenues for the general fund, specified special revenue funds requested by City Council, enterprise funds, internal service funds and debt service funds. Capital project funds for the City are not budgeted annually but are included in the Capital Improvement Plan approved by the City Council. Capital projects are approved by the City Council on a per project basis. 2. Public hearings are conducted to obtain taxpayer comments. 3. The general fund budget is enacted through passage of a resolution. BUDGET CALENDAR 2007 BUDGET 18 CITY OF HOPKINS INTERNAL CONTROLS In developing and altering the City's accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use of disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. the concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and the benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. CASH MANAGEMENT The investment portfolio of the City is designed to attain an average rate of return regularly exceeding the average return on three month US Treasury Bills, while seeking to augment returns above this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent investment principles. Portfolio diversification is considered so that investments are not concentrated in one institution, in one type of investment, or purchased from one dealer. Pursuant to this policy, cash temporarily idle during the year was invested in those investments authorized by law RISK MANAGEMENT The City has an informal risk management policy, the purpose of which is to maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. The City has insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) to ensure City property, contractors and miscellaneous equipment, crime, employee performance bonds, autos and general liability. General liability coverage amounts to $1,000,000 per occurrence (and aggregate), with a $20,000 per occurrence, $40,000 aggregate deductible. DEBT The City may issue debt for its Permanent Revolving fund, which pays for any improvement in which part of the cost of the improvement is to be assessed against the benefiting properties. The City may also issue revenue bonds that are paid back directly from revenue sources other than debt levies. Finally the City may submit to voters the proposition of issuing debt for any public purpose not prohibited by law, and issue the debt upon a favorable majority vote. The City will keep the total maturity length of general obligation bonds below 25 years. Total net (after deducting reserves) general obligation bonds (net of utility supported portion and any portion supported by others, such as direct fees to property owners) shall not exceed $1,309 (2005 dollars) per capita, to be indexed annually by the increase in property market value and population. Net general obligation debt (as defined above) will not exceed 2% of the estimated full market value of taxable property in the City. The City may issue emergency bonds to pay for extraordinary expenditures or to cover a shortfall in revenues for budgeted expenditures. Emergency bonds must mature within ten years of issuance. One tenth of the amount is to be levied the first year following issuance and one tenth every year there after for ten years. 2007 BUDGET 19 CITY OF HOPKINS FUND STRUCTURE The accounting system maintains a standard fund structure for a typical Minnesota city government. Following is a description of the funds included that are subject to appropriation, for which financial plans and budget appropriations are prepared annually. These funds are the General, Special Revenue, Debt Service, Capital Projects and Enterprise. General Fund The General Fund accounts for all financial transactions not properly accounted for in any other fund, including most of the basic governmental services. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, parks and public works, recreation, planning, engineering and general government. Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains nineteen Special Revenue Funds. There are eighteen budgeted Special Revenue Funds. Chemical Assessment Team Fund grant funds received from the state restricted for the operation of the Chemical Assessment Team. Economic Development Fund revenue sources include interest on loans, taxes, development fees that are used for expenditures relating to housing and redevelopment projects throughout the city. Real Estate Purchases and Sales Fund revenue sources include variance fees of city property to be used to improve city infrastructure. Tax Increment Funds (8) tax increment revenues for housing and economic redevelopment projects throughout the city. Paratransit Fund local grant and rider fees used to support local transit services. Housing Rehabilitation Fund interest on loans provided to local businesses and homeowners to improve enhance property. Parking Fund parking permits and parking violation fees help support the maintenance of the cities current parking lots and ramps. Section 8 Housing Fund HUD rental assistant program. Cable TV Fund franchise fee for cable TV supports cable and communications efforts of the city. Depot Coffee House Fund grants, leases and concession revenues support a local teen center and coffee house. Art Center Fund leases, state aids, contributions and program sales support the Hopkins Center for the Arts, which is a community -based center with theater and art at its base. Some of the Special Revenue Funds do not require an annual financial plan because of the nature of the type of revenue and expenditure. Expenditures are authorized on an individual basis. Hennepin County CDBG Fund block grant funds used for housing and infrastructure improvements Debt Service Funds Debt service funds account for the accumulation of resources for the payment of general long -term debt principal, interest, and related costs. The City maintains individual debt service funds for each bond issue. The City has established annual financial plans for all general obligation bond funds, which is shown in total as the GO Debt Service Funds. 2007 BUDGET 20 CITY OF HOPKINS Capital Project Funds Capital project funds account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has four budgeted funds in this category: Park Improvement Fund development and improvement of City parks. Revenue is primarily from park development fees paid by developers. State Aid Construction Fund revenue from state aid to assist with maintenance and construction of state aid streets throughout the city. Capital Improvement Fund transfers from other funds to cover future improvements or maintenance of city facilities and infrastructure. Permanent Improvement Revolving Fund bonds issued to fund reconstruction and maintenance of residential streets throughout the city. Enterprise Funds Enterprise funds account for our business -type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has five Enterprise funds. Water Utility Fund water utility fees based on water usage, which covers the expense of distributing water and maintaining the water system infrastructure. Sewer Utility Fund sewer utility fees based on water usage, which covers the expense of disposing of sewer products and maintaining the sewer system infrastructure. Refuse Utility Fund refuse fee based on size of refuse container, which covers the expense of disposing of refuse products. Storm Sewer Utility Fund storm sewer utility fee based on non permeable surface of property for commercial or a fixed rate for residential properties, which covers the expense of maintaining the storm sewer infrastructure throughout the city. Pavilion /Ice Arena Fund rental fees for ice or space, which covers the operating costs of running the facility. 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. The City has three Internal Service Funds and no budgets are prepared for these funds. Equipment Replacement revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. Employee Benefits to account for compensated absences of non enterprise employees Insurance Risk accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. 2007 BUDGET 21 CITY OF HOPKINS Authorized Staffing Levels Full -Time and Permanent Part -Time Positions 2007 BUDGET 27 2003 Authorized 2004 Authorized 2005 Authorized 2006 Authorized 2007 Authorized Administrative Services 5.11 3.53 5.55 5.55 5.15 Finance 4.0 4.30 4.60 4.60 4.60 Municipal Building 1.5 .85 1.40 1.45 1.45 Community Services 10.3 9.74 8.9 8.9 9.48 Police 41.25 39.00 37.50 38.50 39.40 Fire .90 .90 1.20 1.20 1.20 Public Works 23.05 20.00 19.50 18.60 18.59 Skate Park .05 .05 Activity Center 3.66 2.55 4.10 4.10 4.00 Planning Community 1.28 1.20 1.20 1.20 1.20 General Fund Total 90.05 82.07 83.95 84.15 85.12 Economic Development 2.37 2.40 1.60 1.60 1.60 Para Transit .15 .20 .20 .20 .20 Housing Rehabilitation 1.05 .65 .70 .70 .70 Parking 1.8 1.20 2.00 2.00 1.00 Section 8 1.2 1.40 1.40 1.40 1.35 Cable .58 .07 .05 .05 .10 Depot Coffee House .73 1.08 1.93 .05 Art Center 3.92 3.72 4.22 4.05 4.05 Special Revenue Fund Total 11.80 10.72 12.10 10.00 9.05 Water 4.18 3.56 3.24 3.25 3.25 Sanitary Sewer 3.35 3.23 3.55 3.56 3.56 Refuse 3.68 3.89 4.15 4.08 4.08 Storm Sewer .62 .47 .47 .46 .46 Pavilion /Ice Arena 2.37 2.44 2.44 2.90 2.72 Skate Park .38 Housing Redevelopment 1.9 1.90 1.90 2.40 2.45 Total Proprietary Funds 16.48 15.49 15.75 r :16.65 16.52 Total All 119.33 108.28 111.80 110.80 110.69 CITY OF HOPKINS Authorized Staffing Levels Full -Time and Permanent Part -Time Positions 2007 BUDGET 27 Operating Fund Administration General Government Finance Police Fire Public Works Community Community yes Recreation General Fund X X X X X X X Special Revenue Funds Economic Development Para Transit Housing Rehabilitation Parking Section 8 Cable TV Depot Coffee House Art Center X X X X x x X x Enterprise Funds Water Sewer Refuse Storm Sewer Pavilion Housing Redevelopment X x x x X X CITY OF HOPKINS This matrix shows the relationship between functional units and funds. 2007 BUDGET 23 GENERAL FUND Property Taxes Intergovernmental Licenses, Permits Fines Interest Earnings Charges for Services Miscellaneous Franchise Fees SPECIAL REVENUE FUNDS Chemical Asses. Team Economic Development Real Estate Sales Paratransit Housing Rehabilitation Parking Section 8 Cable Franchise Depot Coffee House Art Center Tax Increment Financing REVENUES 2007 2006 Difference age 7,557,758 436,010 649,000 109,949 209,800 17,250 290,000 7,211,078 411,910 639,400 110,000 200,750 25,150 290,000 9,269,767 8,888,288 381,479 4.3% 45,000 45,000 40,000 94,000 5,800 5,800 116,923 129,017 28,100 28,100 101,500 101,500 113,000 113,500 156,500 156,500 107,700 201,317 485,290 477,020 4,1 67,400 1,120,400 5,367,213 2,472,154 2,895,059 117.1% CITY OF HOPKINS 2007 BUDGET SUMMARY ALL FUNDS 346,680 4.8% 24,100 5.9% 9,600 1.5% (51) 0.0% 9,050 4.5% (7,900) -31.4% GENERAL FUND Council Administrative Services Finance Legal Municipal Building Community Services Police Fire Public Works Recreation Activity Center Planning Unallocated SPECIAL REVENUE FUNDS Chemical Assess. Team (54,000) -57.4% Economic Development Real Estate Sales (12,094) -9.4% Paratransit Housing Rehabilitation Parking (500) -0.4% Section 8 Cable Franchise (93,617) -46.5% Depot Coffee House 8,270 1.7% Art Center 3,047,000 272.0% Tax Increment Financing 2007 BUDGET 24 APPROPRIATIONS 2007 2006 90,632 90,822 413,125 382,580 167,226 151,582 126,625 126,600 304,960 314,176 787,292 813,262 3,883,348 3,755,403 732,897 661,927 1,953,606 1,889,470 220,570 215,635 305,622 296,706 117,864 95,385 166,000 94,680 45,000 45,000 686,893 257,008 116,923 129,017 86,503 89,176 108,004 130,449 114,999 118,966 175,099 141,606 99,865 183,782 437,116 422,950 6,518,431 947,352 8,388,833 2,465,306 Difference age (190) -0.2% 30,545 8.0% 1 5,644 10.3% 25 0.0% (9,216) -2.9% (25,970) -3.2% 127,945 3.4% 70,970 10.7% 64,136 3.4% 4,935 2.3% 8,916 3.0% 22,479 23.6% 71,320 75.3% 9,269,767 8,888,228 381,539 4.3% 429,885 (12,094) (2,673) (22,445) (3,967) 33,493 (83,917) 14,166 5,571,079 5,923,527 167.3% #DIV /0! 9.4% -3.0% -17.2% 3.3% 23.7% -45.7% 3.3% 588.1% 240.3% PROPRIETARY FUNDS Equipment Replacement Water Sanitary Sewer Refuse Storm Sewer Pavilion/Ice Arena DEBT SERVICE FUNDS Property Taxes Special Fees Interest Earnings Operating Transfer In Total Revenues Use of Equity or Fund Balance TOTAL SOURCES REVENUES 2007 2006 Difference age 342,125 344,800 (2,675) -0.8% 1,068,600 1,056,000 12,600 1.2% 1,479,900 1,437,500 42,400 2.9% 735,700 736,300 (600) -0.1% 748,900 697,500 51,400 7.4% 460,781 382,000 78,781 20.6% 4,836,006 4,654,100 181,906 3.9% 1,207,000 1,217,000 (10,000) -0.8% 672,460 672,860 (400) -0.1% 36,100 24,979 11,121 44.5% 869,219 3,927,444 (3,058,225) -77.9% 2,784,779 5,842,283 (3,057,504) -52.3% 22,257,765 21,856,825 3,342,297 3,819,289 25,600,062 25,676,1 14 CITY OF HOPKINS PROPRIETARY FUNDS Equipment Replacement Water Sanitary Sewer Refuse Storm Sewer Pavilion/Ice Arena DEBT SERVICE FUNDS Bond Principal Bond Interest Service Charges Transfer out APPROPRIATIONS 2007 2006 Difference age 342,723 429,552 1,136,824 1,137,112 2,042,319 1,763,245 809,759 818,471 488,409 508,054 395,445 392,804 5,215,479 5,049,238 (86,829) -20.2% (288) 0.0% 279,074 15.8% (8,712) -1.1% (19,645) -3.9% 2,641 0.7% 166,241 3.3% 1,610,000 4,926,284 (3,316,284) -67.3% 1,109,033 1,307,168 (198,135) -15.2% 6,950 4,665 2,285 49.0% 3,035,225 (3,035,225) 100.0% 2,725,983 9,273,342 (6,547,359) -70.6% 400,940 1.8% Total Appropriations 25,600,062 25,676,114 (76,052) -0.3% (476,992) -12.5% (76,052) -0.3% TOTAL USES 25,600,062 25,676,114 (76,052) -0.3% 2007 BUDGET 25 APPROVED BUDGET SUMMARY ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues, fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. One purpose of the budget is to communicate the financial plans for the City and its allocation of resources. The budgeted revenues for all funds total $22,257,765. The largest source of revenue by category is property taxes of $9,814,758 comprising 44% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits re- instated in 2004 were removed once again in 2005 and date have not been re- instated thereby giving the City the flexibility for meeting citizen's requests for sustained services. 9,000,000 8,500,000 8,000,000 7,500,000 7,000,000 6,500,000 6,000,000 Property Taxes 2003 2004 2005 2006 2007 CITY OF HOPKINS 26 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Intergovernmental Revenue 2003 2004 2005 2006 2007 The City of Hopkins lost over $1.8 million in state aids during the state budget deficits of 2003 and 2004. As state aids were reduced, property taxes were increased to provide sufficient funding to meet service needs of the community. In addition, voter approved debt was added in 2002 and 2003 to fund the new fire station, public works facility addition and police station remodeling projects. Intergovernmental revenues total $794,880 or 4% of the City's revenues. The City currently receives $50,000 in Local Government Aid that supports the Hopkins Center for the Arts. Other forms of intergovernmental revenues received are police and fire aid, chemical assessment grants, PERA aid, fire grants Section 8 Housing funds, Community Development Block Grant funds and other miscellaneous state grants. 2007 BUDGET Utility fees for water, sewer, refuse and storm sewer account for $3,887,000 of the City's revenue or 17 Each year the utility fees are analyzed to determine the accuracy of the rates being charged. The City increased its water and refuse rates in 2005 and the sanitary sewer and storm utility fees in 2006. The storm sewer utility issued bonds in 1999, 2001 and in 2003 to pay for storm sewer replacement costs throughout the City. During each budget cycle all utility rates are analyzed to ensure revenues meet expenditures. 1,700,000 1,500,000 1,300,000 1,100,000 900,000 Charges for Services 2003 2004 2005 2006 2007 CITY OF HOPKINS 2007 BUDGET 77 4,000,000 3,800,000 3,600,000 3,400,000 3,200,000 3,000,000 700,000 Utility Fees 2003 2004 2005 2006 2007 Special Assessments Special Assessments and Special Assessment Fees for housing projects are $672,460 or 3% of City revenues. Special Assessments are levied for street, sidewalk and alley, water, sewer or storm sewer improvements that benefit private property. 600,000 Special Assessment fees are assessed every year to the specific housing properties that benefited from the development projects. These projects allowed the City to improve the value of the housing stock in several town home and condominium developments. Special assessment revenues fluctuate with the number and amount 500,000 of assessable projects. 2003 2004 2005 2006 2007 Charges for services, other than utilities is $1,361,076 or 6% of the City's revenues. The City charges for plan checks, special police or fire services, parking permits for city parking facilities, facility rental, concessions and ice time. Included in charges for services is $287,125, which is charged to the general and special revenue funds for equipment replacement. In 2005 and 2006 the Pavilion ice arena received $200,000 each year in one -time additional lease revenues for a hockey program. The lease revenues for 2007 are back to the usual levels. Permits, licenses and fines are $692,700 or 3% of revenues. Permit revenues are dependant on the economy and on future development of the City. In 2007, permit revenues should increase over 2006 due to redevelopment projects scheduled for 2007. In addition to the franchise fee collected on cable television, a franchise fee on electric and gas utilities was implemented in 2004 to help offset the loss of state aids. It impacts residential properties by $1 per month on each of their electric and gas utility bills. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in 2007 will be about $440,000 or 2% of City revenues. 850,000 800,000 750,000 700,000 650,000 600,000 550,000 500,000 License, Permits Fines 2003 2004 2005 2006 2007 CITY OF HOPKINS Overall, total 2007 budgeted revenues decreased by 2% from 2006 due to reduced charges for service in the Pavilion Enterprise Fund (see page 26) and intergovernmental revenues as grant program funding has been reduced. Shown below is a chart showing the relationship between all revenue sources. 2007 BUDGET 28 500,000 400,000 300,000 200,000 100,000 0 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 Franchise Fees 2003 2004 2005 2006 2007 Total Revenues All Funds 2002 2003 2004 2005 2006 :`;a 'csrim'_. +1Xu.Pom1� Permits, licenses and fines are $692,700 or 3% of revenues. Permit revenues are dependant on the economy and on future development of the City. In 2007, permit revenues should increase over 2006 due to redevelopment projects scheduled for 2007. In addition to the franchise fee collected on cable television, a franchise fee on electric and gas utilities was implemented in 2004 to help offset the loss of state aids. It impacts residential properties by $1 per month on each of their electric and gas utility bills. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in 2007 will be about $440,000 or 2% of City revenues. 850,000 800,000 750,000 700,000 650,000 600,000 550,000 500,000 License, Permits Fines 2003 2004 2005 2006 2007 CITY OF HOPKINS Overall, total 2007 budgeted revenues decreased by 2% from 2006 due to reduced charges for service in the Pavilion Enterprise Fund (see page 26) and intergovernmental revenues as grant program funding has been reduced. Shown below is a chart showing the relationship between all revenue sources. 2007 BUDGET 28 500,000 400,000 300,000 200,000 100,000 0 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 Franchise Fees 2003 2004 2005 2006 2007 Total Revenues All Funds 2002 2003 2004 2005 2006 Other Sources 18% Utility Charges 17% Franchise Fee 2% Charges for Services 7% 2007 Budgeted Revenues Interest 2% CITY OF HOPKINS License, Permits Fees 3% 2007 BUDGET 29 Intergovermental 4% Property Tax 44% Special Assess. Fees 3% $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 CITY OF HOPKINS Major Revenue Trends 2003 2004 2005 2006 2007 The graph depicted above shows the impacts of losing state aids over the last four years. Overall revenues have remained relatively constant with a drastic shift in the makeup of the sources. Intergovernmental revenues are no longer a major revenue source. 2007 BUDGET 30 0 Utility Charges 0 Intergovermental Taxes APPROPRIATION SUMMARY CITY OF HOPKINS Appropriations for all funds total $25,600,062. This is more than anticipated revenues for 2007. The deficit of $3,342,297 will come from designated fund balance in the Tax Increment Financing funds, the Section 8 fund and the Economic Development Fund. The largest source of appropriations by category is employee salaries and benefits at $8,825,154. Employee salary and benefits make up 34% of the City's annual appropriation. In 2007, employee salary and benefits increased by 6.5% due to the addition of one dispatcher, enhanced medical response program and increases in health and pension benefits. Materials, supplies and services make up 22% of appropriations at $5,587,438. This amount represents a 13.5% increase over last years budget. The increase is related to three economic development projects that staff is currently working with developers on and their related professional fees, increased maintenance costs on the expanded public works and police facilities, fuel products, heating and electricity, insurance and general cost increases. The costs in this category comprise of consulting, professional services, office and general supplies, disposal costs, expenditure reimbursements and general operating costs. Capital outlay and improvements can fluctuate substantially every year. In 2007, the appropriated amount is $1,174,334 or 4.6% of total appropriations. Anticipated capital costs on three development projects related to developer incentives make up the majority of budgeted capital appropriations. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets. Debt service appropriations in 2007 decreased 48% due to 4 bond refundings that took place in 2006. Total appropriations for 2007 are $3,254,566 or 13% of appropriations. The remaining 4% of appropriations is for depreciation of property and equipment. The six largest programs of the City in 2007 account for 70% of the appropriations budget and are as follows: Tax Increment Finance $6.5 million Police 3.8 million Debt Service 2.7 million Sanitary Sewer 2.0 million Public Works 1.9 million Water 1.1 million 2007 BUDGET 31 Equipment Replacement 1% CITY OF HOPKINS 2007 Budgeted Appropriations By Category Debt 11% General Government 9% Utilities 17% Public Safety 18% Recreation 6% Tax Increment Community Financing Development 25% 4% 2007 BUDGET 32 Public Works 9% Depreciation 5% Capital Outlay 6% 2007 Budgeted Appropriations Debt 16% CITY OF HOPKINS Materials, Supplies Services 28% 2007 BUDGET 33 Salaries Benefits 45% SOURCE Current Revenues PROPERTY TAX TAX INCREMENT SPECIAL ASSESSMENTS LICENSE, PERMITS FINES INTERGOVERNMENTAL REVENUE CHARGES FOR CURRENT SERVICES IN'1 ON INVESTMENTS UTILITY SERVICE CHARGES FRANCHISE FEES OTHER REVENUES TOTAL CURRENT REVENUES Other Financing Sources TOTAL REVENUES CITY OF HOPKINS REVENUES ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE 2003 ACTUAL 6,876,064 2,246,378 672,999 825,159 1,933,190 1,251,249 444,826 3,395,71 1 137,931 214,197 17,997,704 18,287,687 1,892,771 2,594,787 19,890,475 20,882,474 2007 BUDGET 34 2004 ACTUAL 7,702,582 2,206,679 666,001 753,960 1,331,443 1,266,301 370,690 3,323,720 398,158 268,153 2005 ACTUAL 7,764,934 970,846 670,118 702,564 1,144,682 1,501,288 329,931 3,590,821 458,972 372,967 17,507,123 5,117,753 22,624,876 2006 ACTUAL 8,588,239 980,141 660,578 626,972 1,103,916 1,552,610 630,064 3,700,100 446,666 334,187 18,623,473 4,166,296 22,789,769 ADOPTED 2007 BUDGET 8,779,758 1,035,000 672,460 692,700 794,880 1,3 61,076 385,749 3,887,000 440,000 270,950 18,319,573 3,93 8,192 22,257,765 OBJECTIVE Current Expenditures /Expenses SALARIES AND EMPLOYEE BENEFITS MATERIALS, SUPPLIES AND SERVICES CAPITAL OUTLAY DEPRECIATION DEBT REPAYMENT TOTAL Other Financing Uses TOTAL EXPENDITURES Excess (deficiency) of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses Fund Balance and Equity January 1 Fund Balance and Equity December 31 CITY OF HOPKINS EXPENDITURES/EXPENSES ALL FUNDS COMPARATIVE ANALYSIS BY OBJECTIVE 2003 ACTUAL 7,980,601 7,996,710 8,119,120 8,281,048 8,825,154 5,1 10,460 571,765 900,099 3,535,096 3,951,582 18,098,021 17,953,144 1,921 ,774 2,381,568 20,019,795 20,334,712 (129,320) 547,762 32,842,661 32,713,341 32,713,341 33,261,103 2007 BUDGET 35 2004 ACTUAL 4,496,543 288,712 1,219,597 2005 ACTUAL 4,916,977 264,710 903,194 3,654,654 17,858,655 1,553,267 19,411,922 33,261,103 36,474,057 2006 ACTUAL ADOPTED 2007 BUDGET 4,919,967 5,587,438 78,345 1,174,334 1,180,429 1,013,650 6,687,726 3,254,566 21,147,515 19,855,142 3,956,077 5,744,920 25,103,592 25,600,062 3,212,954 (2,313,823) (3,342,297) 36,474,057 34,160,234 34,160,234 30,817,937 23,000 20,000 17,000 14,000 11,000 8,000 5,000 Tax Capacity History (in thousands) o' o o` o`) o°` o< o° 6 N N N N o 9 0 9 0 (1, o o o o o As the graph depicts, the tax capacity in Hopkins had remained pretty level through 2000. However market values continued to rise every year. The leveling of tax capacity is primarily caused by restructuring of the tax classifications and rates by the state. In 2002, tax capacity decreased substantially due to drastic changes in property classification rates by the state. Without further adjustments by the state, the tax capacity is projected to continue steady growth into the future. CITY OF HOPKINS The growth in tax capacity from 2002 thru 2007 reflects overall increased market value of property in Hopkins from redevelopment. In 2002 the affects of the changes implemented by the state on property classifications is evident. Although market values in Hopkins rose by 10% in 2002, the tax capacity dropped over $5 million dollars. Below depicts tax capacity value over the last twelve years. $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $o The City of Hopkins is experiencing major growth in its' residential property values. One goal of the city council is to preserve the current housing stock and promote housing growth. The graph above depicts the achievement of this goal. The housing stock has grown in Hopkins and the market value of the residential properties has grown substantially. Commercial, Industrial and Apartment properties have also experienced increases in market value. The City's levy is allocated against the tax base along with the levies for the school district, county and miscellaneous government entities. An average home in Hopkins in 2007 is valued at $217,400. Total taxes of $2,483 on an average home in Hopkins helps pay for all governmental services. 2007 BUDGET 36 City of Hopkins Market Values Pe e (1) N CSP te 9, e (19 10 .5 ri,c r, 90 Commercial —s— Industrial Residential Apartments City Property Tax Levy $90 $80 $70 $60 $50 $40 $30 $20 $10 $o City of Hopkins Monthly Property Tax Service Cost for an Average Home CITY OF HOPKINS 2000 2001 2002 2003 2004 2005 2006 2007 37 2007 Monthly Property Tax Cost (average home) Council $0.85 Administrative Services $3.86 Finance $1.54 Legal $0.29 Municipal Building $2.83 Community Services $2.35 Police $32.75 Fire $5.79 Public Works $17.08 Recreation $2.06 Activity Center $2.18 Planning and Community Development $1.04 Unal located $0.10 Debt $3.01 Debt on Facility Project $8.27 Monthly Cost for City Services $84.00 As depicted above, the cities monthly service costs have risen. Historically, the monthly cost increases have been slight. In 2002, 2003 and 2004 however, we experience increases of $13, $9 and $9 a month respectively, for property tax supported city service costs. The larger than average increases in monthly costs are due primarily for two reasons. In 2002 the state changed the property tax structure, causing the City portion of property taxes to go up substantially. In 2003, the City levied $550,000 for the new facilities that was approved for construction in 2003. In 2004, the property owner is seeing increases in property taxes for the completion of the facility project. In 2005 due to the decertification of three tax increment districts additional tax capacity became available, thereby lowering property taxes for the average taxpayer. A residential property owner in Hopkins will experience an $11 per month increase in property taxes in 2007 due to the addition of a police dispatcher, expanded medical response program, health care cost increases and state mandated pension increases for all staff. 2007 BUDGET City Levy By Purpose (Net of Credits) 2007 2006 General Fund $7,516,943 $7,164,263 4.9% increase Debt 1,207,000 1,217,000 .8% decrease HRA PERA Capital 20,000 20,000 11,815 11,815 50,000 25,000 0% 0% 100% In 2007 the City continued its property tax levy for the purpose of funding the debt for the construction of the new fire station, replacing the public works storage facility and remodeling the police station. 2005 was the first full year of the franchise fee on electric and gas bills. Water, sanitary sewer, storm sewer and refuse rates remain at 2006 levels. CITY OF HOPKINS no change no change increase 2007 BUDGET 38 Monthly Service Costs City of Hopkins Average Monthly Service Costs (average home): City Property Taxes HRA Property Taxes Water Consumption 5,000 a month $1.40/1000 gal. Sewer Consumption 5,000 a month $2.50/1000 gal. Refuse and Recycling Storm Sewer Franchise Fee Total 2007 $84 /mo 0 /mo 2006 $73 /mo 0 /mo 7 /mo 7 /mo $12 /mo $12 /mo $17 /mo 4.50 /mo 2 /mo $126.50/mo 9.5% increase overall $17 /mo 4.50 /mo 2 /mo $115.50/mo Special revenue funds, which experience changes in 2007, include Economic Development, Cable, Tax Increment Financing, Depot Coffee House, and Art Center funds. The activities in the Economic Development and Tax Increment Funds encompass redevelopment and development of the City of Hopkins. Projects currently underway include the Opus Office redevelopment and two condo /retail development projects. All projects are redevelopment of blighted areas with new businesses and /or housing. The expenditures follow the goals of continued redevelopment to expand the tax base in Hopkins. Both the Economic Development fund and the Cable fund support the Art Center with an operating transfer to help pay for promoting, advertising and debt at the Art Center. The Depot Coffee House Fund changed operations in 2006 no longer operating the coffee house portion of the business. By focusing on the teen center aspect the goals of the program can be better met. The coffee house operations are now done by an independent operator, which has resulted in greater efficiencies and cost savings within that fund. City tax capacity rates of 46.224% result in payments of $1,005 annually or approximately $84 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. Police Protection $32.75 Fire Protection $5.79 Other Debt $3.01 Building Maintenance $2.83 CITY OF HOPKINS Net monthly property tax costs for program budgets Street and Park Maintenance $17.08 Council Administration $4.81 Finance $1.54 Activity Center $2.18 2007 BUDGET 39 Planning $1.04 Facility Project Debt $8.27 Assessing, Inspections City Clerk 2.35 Recreation $2 06 The City's overall net levy increase before tax credits is 4.36 The general fund gross levy increased from 2006 to 2007 by 4.9% or $352,680. The debt levy decreased from 2006 to 2007 by $10,000 due to maturing debt schedules. The total levy increase for 2007 is $367.680 CITY OF HOPKINS Taxpayer Super Valu St. Therese Duke Realty Ramsgate Apartments Auburn North Greenfield (Phase I) Westside Village Greenfield (Phase II) Rosewood West Creekwood Estates Knollwood Towers West Atlas Cold Storage Hopkins Plaza Apartments Brentwood Hopkins Business Center Plantation Apartments Oak Ridge Country Club Planned Inv 97 -1 Hopkins LLC Hopkins Village Apartments Gateway Foods PRINCIPAL TAXPAYERS Type of Business Grocery Warehouses Apartments /Assisted Living Office /Warehouses Apartments Townhouses Apartments Apartments Apartments Apartments Apartments Apartments Warehouse Apartments Apartments /Townhomes Bank/Office Apartments Golf Course Bank/Office Apartments Office /Warehouse Percentage Tax of Total Tax Capacity Capacity 1,038,000 318,125 292,500 235,413 150,663 143,288 131,178 129,663 124,138 120,588 112,538 110,490 107,852 100,213 98,450 94,413 94,230 91,250 87,867 85,250 6.17 1.89% L74% 1.40% 0.90% 0.85% 0.78% 0.77% 0.74% 0.72% 0.67% 0.66% 0.64% 0.60% 0.59% 0.56% 0.56% 0.54% 0.52% 0.51% Amount of Estimated Tax City Receives 375,949 157,392 105,939 116,471 74,541 70,892 64,688 64,151 61,417 59,661 55,678 40,407 53,360 49,580 35,657 46,711 34,461 33,371 43,313 31,177 2007 BUDGET 40 Shown to the left are the main taxpayers in the City of Hopkins and their percentage of total tax capacity. The largest taxpayer comprises less than 6.5% of total tax revenues and the next largest taxpayer comprises less than 2 The city has a diverse and stable tax base, which provides the city with assurance that tax revenues will remain stable against the loss of a significant taxpayer. CITY OF HOPKINS Fund Balance Fund Balance is the result of accumulated excess revenues over expenditures over past years. The City incorporates fund balance goals to meet its short and long -term needs. Fund balance goals are established by staff and council, to provide for cash flow needs, capital purchases, emergency contingency and other special needs identified. Most funds are projected to exceed the fund balance goals established by staff. The general fund will add about $200,000 to its fund balance in 2006. This is the result of revenues exceeding budgeted goals in the areas of licenses, additional grants received that were not expected when the budget was prepared, and conservative staff spending in 2006. The general fund is currently above its fund balance goal of 50% and is at 54% of expenditures. Due to conservative expenditure goals and modest tax increases we expect the general fund balance to continue to be at or above 50% of annual expenditures. The Economic Development fund will use approximately $646,893 of its fund balance to pay for normal operations to administer housing and business redevelopments in Hopkins. Included in 2007 expenditures is a $400,000 transfer for an redevelopment project within the downtown area. The HRA levy was established for in 2002 to help fund operating costs to promote development efforts within the city. Due to property tax increases the council eliminated the HRA levy temporarily and added a portion of this levy back in 2005 with continued increases in 2006 and beyond. Without a levy for this fund the normal operating costs to administer housing and redevelopment in Hopkins would absorb all the funds available to assist with redevelopment projects. The Economic Development fund continues to meet its' fund balance goals. The Housing Rehab fund will continue to use fund balance for normal operations. Fund balance use will continue into the future. This fund will need another source of funding by 2016. This fund dropped below its fund balance goals in 2005. The Parking fund will use a portion of its fund balance for operations and a portion for ramp maintenance. The city will need to increase parking fees by approximately 10% every other year or there will not be enough funds to maintain the parking lots and cover operations. Currently this fund is slightly above its fund balance goals. The Cable TV fund continues to support the advertising and promotion of the Art Center. In 2004, the full -time position supporting the communications activity for the city was eliminated. The city has retained a part-time web and newsletter editor. Given these changes this fund should continue well into the future. The council and staff continue to work hard at relieving the Art Center promotional activity expense burden from the cable fund. Currently this fund exceeds its fund balance goals. The Depot Coffee House after several years struggling financially evaluated its goals and mission and decided to outsource the coffee house portion of the operations to a private operator. This allowed the board to focus on the teen center mission thereby receiving grant funds to fulfill its mission. The Depot Coffee House in 2006 met its fund balance goals and anticipates this continuing into the future. The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid- 1990's. The Art Center has long -term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives $50,000 annually in state aids along with supporting transfers from the Economic Development and Cable TV funds. The Arts Center is working to retire its debt but is several years away from its targeted fund balance. Tax Increment fund balance may be used to retire tax increment debt early. Tax Increment District 1 -1 was retired early in 2005. Currently all tax increment funds meet their combined fund balance goals. In addition two new tax increment redevelopment projects are being realized with significant expansion to the city's tax base. 2007 BUDGET 41 CITY OF HOPKINS 2007 FUND BALANCE PROJECTIONS Projected 2007 Projected Amount Recommended Beginning Changes in Available for Amount Fund Balance Fund Balance Fund Balance Appropriation Reserved GENERAL FUND Approximately 50% of Budgeted Expenditures 4,444,144 5,006,938 4,741,122 265,816 CHEMICAL ASSESSMENT Grant must be spent in order to be reimbursed ECONOMIC DEVELOPMENT Maintain healthy fund balance to enable future 3,000,000 2,484,842 (646,893) 1,837,949 development projects for the city. REAL ESTATE PURCHASES AND SALES 40,000 84,264 5,800 90,064 PARATRANSIT BUDGET Grants and fares do not usually cover entire costs. Supported by the general fund. HOUSING REHABILITATION 1,000,000 866,462 (58,403) 697,226 110,833 Maintain healthy fund balance to continue support of housing rehabilitation for the city. PARKING 250,000 257,182 (6,504) 250,678 Maintain fund balance to continue maintenance of parking facilities and support the enforcement of parking. SECTION 8 40,000 100,409 (1,999) 98,410 Maintain minimum to continue section 8 housing program. CABLE TV 200,000 322,354 (18,599) 303,755 Maintain fund balance to replace communications equipment and support communications. DEPOT COFFEE HOUSE 40,000 89,498 7,835 97,333 Build fund balance for capital improvements ART CENTER OPERATIONS 80,000 (847,402) 48,714 (798,688) Build fund balance for capital improvements TAX INCREMENTS 2,000,000 1,383,687 (2,351,031) (967,344) Maintain healthy fund balance to continue support of existing debt, pay -as- you -go notes and projects. 2007 BUDGET 42 Debt Overview $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Total Debt CITY OF HOPKINS The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor's' AA- and Moody's A+ G.O. debt ratings. The City's total outstanding debt on December 31, 2006, was $28,615,000. After reducing this by the amount supported by utilities or special fees, the per capita debt is $922. In 2006 four bond issues totaling $3,630,000 were refunded with bond proceeds from the November 2005 refunding bond sale that along with regular bond maturities reduced bonds outstanding by a total of $5,376,284. The total debt principal and interest due in 2007 is $2,020,000, of which $1,207,000 is raised through direct tax levy. The remaining principal and interest is paid with direct fees, utility fees, tax increment transfers, and special assessments. As depicted in the graph below debt service requirements increase until 2006 and then decrease for the next twenty years. The requirements drop to $2,530,831 in five years and to $1,562,316 in ten years. The ability to retire 69% of the City's debt in the next ten years is a major strength. The City is anticipating issuing new debt in 2007 for street improvements made in the years 2004 through 2006. The graph below illustrates the retirement of debt in years 1999 through 2024. 0 0� o0 1 0 N 3 ,�h 1 N o ge �o co (o (19' r0 90 9! q (1>) (1>) 9>) 2007 BUDGET 43 Minnesota State law limits the amount of G.O. debt for any municipality to 2% of market value, estimated to be $1,618,206,800 in 2007. This limitation provides reasonable assurance of the municipality's ability to pay. The legal debt limit for Hopkins is $32,364,136; projected debt subject to the legal limit for Hopkins is $13,445,000. OUTSTANDING DEBT AND PURPOSE 2005A 2005A 2005B 2005B 2003 2003 2002A 2002B 2002 2001 2001 2001 2000 1999A 1999B 1999C 1999D 1995 General Obligation Tax Increment Refunding General Obligation Tax Increment Refunding Taxable General Obligation Taxable General Obligation General Obligation Storm Sewer Public Facilities Lease Revenue Bonds Improvement Revolving Bonds General Obligation Tax Increment Bonds Public Facilities Lease Revenue Bonds General Obligation Refunding Park Bonds 1993D General Obligation Refunding Improvement General Obligation Refunding Storm Sewer 1993B Water Revenue Bonds Taxable Housing Improvement Taxable Improvement Area Bonds Storm Sewer Revenue Bonds Improvement Revolving Bonds Housing Improvement Area Bonds Total Outstanding Debt December 31, 2006 CITY OF HOPKINS Oaks of Mainstreet Redevelopment County Road 3 Improvements Phase I Westbrooke Patio Homes Improvements Oaks of Mainstreet Redevelopment Storm Sewer Replacement Police Station Expansion and Remodeling Street Improvements County Road 3 Improvements Phase 1I Fire Station Public Works Storage Facility Park Improvements Street Improvements Storm Sewer Replacement Paint Water Towers Implement Radio Read Meters Westbrooke Patio Homes Improvements Valley View Homes Improvements Storm Sewer Replacement Street Improvements Meadow Creek Condominium Improvements 505,000 1,125,000 1,320,000 435,000 1,115,000 2,805,000 715,000 2,205,000 9,965,000 675,000 265,000 860,000 1,395,000 1,245,000 2,190,000 1,010,000 390,000 395,000 $28,615,000 2007 BUDGET 44 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS ALL FUNDS Total Tax Increment Bonds Special Assmnt Bonds Revenue Bonds Housing Fee Bonds G.O Bonds Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2007 2,020,000 1,293,043 335,000 163,916 315,000 46,378 475,000 181,304 215,000 327,884 680,000 573,561 2008 2,170,000 1,214,655 360,000 152,087 320,000 34,854 495,000 162,201 305,000 312,570 690,000 552,944 2009 2,110,000 1,129,591 375,000 139,184 200,000 24,865 505,000 141,851 325,000 293,365 705,000 530,326 2010 2,080,000 1,044,773 385,000 125,449 210,000 16,534 530,000 120,976 240,000 276,050 715,000 505,764 2011 2,030,000 955,906 405,000 110,691 110,000 10,195 320,000 101,705 480,000 253,160 715,000 480,155 2012 1,745,000 872,259 405,000 95,588 115,000 6,067 330,000 86,131 270,000 229,141 625,000 455,331 2013 1,745,000 791,025 210,000 84,263 100,000 1,974 350,000 69,683 435,000 206,795 650,000 428,311 2014 1,460,000 713,156 215,000 76,119 370,000 52,118 195,000 187,490 680,000 397,429 2015 1,815,000 631,630 220,000 67,583 390,000 33,344 495,000 165,759 710,000 364,945 2016 1,270,000 554,713 240,000 58,360 65,000 22,534 220,000 143,076 745,000 330,743 2017 1,550,000 483,206 135,000 50,533 70,000 20,153 565,000 117,819 780,000 294,703 2018 1,275,000 410,389 140,000 44,413 70,000 17,598 245,000 91,728 820,000 256,651 2019 1,565,000 336,073 150,000 37,813 75,000 14,878 485,000 66,808 855,000 216,575 2020 1,250,000 262,018 155,000 30,681 80,000 11,893 115,000 45,039 900,000 174,405 2021 1,750,000 3,182,053 170,000 22,750 80,000 8,733 560,000 20,478 940,000 3,130,093 2022 1,255,000 102,866 180,000 14,000 85,000 5,411 990,000 83,455 2023 1,315,000 40,905 190,000 4,750 90,000 1,845 1,035,000 34,310 2024 210,000 4,568 210,000 4,568 28,615,000 14,022,826 4,270,000 1,278,177 1,370,000 140,866 4,380,000 1,052,355 5,150,000 2,737,161 13,445,000 8,814,268 2007 BUDGET 45 CITY OF HOPKINS Through the visioning process the City has discovered that there are many community needs that the City of Hopkins must meet. The future debt capacity will allow the City to issue debt to provide for our community's needs and desires while keeping property taxes reasonable. $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Principal and Interest Debt Obligations 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 46 Principal and interest payments for the City are projected to stay fairly level into the future. 2007 BUDGET Tax Increment Special Asses. Revenue G.O. CAPITAL EXPENDITURES CITY OF HOPKINS Capital Improvement Plan The Capital Improvement Plan (CIP) is a five -year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. 2007 Capital Improvement Projects Building Improvements Scheduled for 2007 are improvements to City Hall which will include HVAC upgrades along with carpet and wall covering replacements. The current 80 -ton chiller, air handler and boiler are over 40 years old. We propose to replace the chiller and air handler with two roof top units. Plans also include adding a third smaller energy efficient boiler for off -peak times. Payback on the HVAC system is 3 -4 years. City Hall improvements are needed due to the age of the carpet and wall coverings. In addition due to attrition several office areas are currently vacant within the Community Services area. For greater efficiency and to implement a central filing system a space needs assessment was done. The amount budgeted for the implementation of the new office layout, and new carpeting and wall coverings throughout city hall. The operational impact of city hall office improvements will be decreased maintenance costs and greater efficiencies by city staff. Parks Scheduled for 2007 is the replacement of the Pavilion skate tile and lobby improvements, improvements to Central Park Ballfield #2, re- roofing of park shelter roofs at Oakes, Valley and Maetzold parks, replacement of a picnic pavilion for Park Valley park and the construction of two shuffleboard courts in Burnes Park. The current skate tile in the Pavilion is 16 years old and is the original tile. The wear layer is worn through in the high traffic areas. The original tile was not glued which increases maintenance and can create gaps in seams. This can allow skates to touch the concrete underneath the tile. Pavilion lobby skate and ceramic tile would add to the building aesthetics. Ballfield #2 sod was not part of the Central Park renovations in 1991 and due to extensive settling of existing sod landscaping repairs need to be done. The park shelters were constructed in 1976 and the roofs are now 30 years old. The asphalt shingle roofs have out -lived their life expectancy of 25 years. The picnic pavilion was an old dilapidated structure that was removed in 2006. The city plans to purchase a new pavilion and the neighborhood has volunteered to install the pavilion. The shuffleboard courts in Burnes Park are to meet the need for more passive, less physically demanding form of outdoor recreation. All these improvements enhance our recreational facilities. Operational impacts include reduced maintenance costs in all facilities. Utilities Included in the CIP for 2007 are storm drainage work, upgrade of sanitary sewer lift station #1 and culvert construction of Van Buren Avenue. Funding is from the utility funds. Operational impacts are reduced maintenance costs within the utility funds. Pavement Management A funding and implementation plan for repair and maintenance of Hopkins roadways exists. Needs are identified and funded through State Aids, special assessments, utilities, tax increments and annual levies. This program identifies the most opportune time to repair streets. In 2007 the City anticipates spending approximately $1,730,000 on street improvements. In addition to the City's share of costs, other government agencies will contribute approximately $140,000 towards street improvements in Hopkins. A proactive pavement management and infrastructure improvement program aids in keeping public works maintenance costs to a reasonable level and as a result of the city's program, maintenance costs have remained relatively stable over the last five years. 2007 BUDGET 47 PROJECT TITLE City Hall Building Improvements Parks Pavilion Skate Tile Replacement and Lobby Improvements Parks Central Ball Field #2 Parks Park Shelter Roofs Park Valley Picnic Pavilion Park Burnes Park Shuffleboard Courts Residential Street Improvements Residential Street Improvements Utilities Citywide Concrete Alleys Storm Drainage System Maintenance Storm Drainage Upgrade of sanitary sewer lift station #1 Storm Drainage Culvert construction Total CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2007 2007 $171,000 $52,000 $25,000 $20,000 $11,000 $15,000 $1,440,000 $250,000 $40,000 $15,000 $200,000 Carpet and wall covering replacement, office reconfiguration and HVAC upgrade Replacement of existing skate tile and adding skate tile and ceramic tile to the lobby Re- grade, level, supplement soils and re -sod ballfield #2 Re -roof park shelter roofs at Oakes, Valley and Maetzold Parks Picnic pavilion at Park Valley Park Construct two shuffleboard courts at Burnes Park Drillane and 19th Avenue North at 3rd Street reconstruction; 12 -16th Avenue North overlay; Blake Road overlay Program to reconstruct deteriorated water main and sanitary sewer and to provide storm sewer improvements in conjunction with street improvement projects Alley south of 6th Street South and north of 9 Mile Creek between 11th and 10th Avenue South In conjunction with concrete alley repairs Replace a confines space lift station that was installed in 1957 with a new submersible lift station and re- routing of the discharge line or eliminate lift station and install new gravity sewer pipe to Minnetonka trunk sewer pipe in Shady Oak Road $50,000 Install additional 36" culvert pipe under Van Buren Avenue North and construct improvements to existing culvert entrance conditions $2,289,000 The projects described above are planned for 2007. The complete Capital Improvement Plan (CIP) is five years. Both of these plans assist the City with budgeting. 2007 BUDGET 48 2007 Equipment Replacement Plan In addition to the CIP, the City also completes an Equipment Replacement Plan (ERP). The ERP is a twenty -year forecast and a five -year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty -year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $701,600. Revenues for the ERP are derived from charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty -year period. The following items are in the 2007 ERP and have been approved for purchase in 2007. City Hall Copier Computer Replacements Upgrades Network Infrastructure Upgrade Fire Department Thermal Imaging Camera Police Patrol Vehicles Sergeants Vehicles Police Administrative Vehicle Police Mobile Data Computers Parks /Refuse Log Truck Sanitary Sewer 3/4 ton utility truck Water 1/2 ton truck Council Chamber Cameras and Control System Total PROJECT TITLE 2007 $10,000 Annual lease on large copier 5 -year lease $61,640 Replacement and /or upgrades of staff computers, printers and scanners $15,000 Upgrade of technology wiring in City Hall done in conjunction with City Hall improvements $15,000 Replacement of 10 -year old camera. Camera is used by fire department to locate victims trapped in a smoke filled building. It assists in determining where fire and heat may be hidden allowing for faster extinguishment. $89,400 Marked patrol cars used by patrol officers to respond to calls, enforce traffic laws and perform general patrol duties $24,800 Police administrative and detective vehicle $47,000 Mobile data computers installed in squad cars used to receive calls from dispatch, query information from various databases and communicate car to car $105,000 Truck used for hauling brush and logs in the Forestry and Refuse Departments $26,000 Replacement of a 3/4 ton utility truck used by the Water /Sewer Division of Public Works $20,500 Replacement of a 1/2 ton truck used by the Water Department division of Public Works $5,000 Studio equipment, lighting and cameras for meeting cable casts and presentations $419,340 CITY OF HOPKINS 2007 BUDGET 49 2007 Other Budgeted Capital Expenditures Along with the Capital Improvement and Equipment Replacement Plans the city has the following capital items budgeted in the operating budgets of the General and Special Revenue Funds. The first year an item is requested it must be funded within the department making the request. Once the item has been funded it will be placed in the ERP for future replacement. All construction related capital items are always placed in the CIP regardless of the funding source. Items with a value of $1,000 or greater are defined as capital expenditures within the General and Special Revenue Funds. Items with a value of $5,000 or more will be placed in the ERP for future replacement once funded by the department making the request. The exception is capital items in the Chemical Assessment Team Special Revenue Fund, which is fully funded by State of Minnesota HazMat grant dollars. The following capital items have been budgeted in the General and Special Revenue Funds for 2007. PROJECT TITLE General Fund Municipal Building Building Police Building Equipment Police Patrol Equipment Police Heat Team Equipment Public Works Street Equipment Public Works Street Equipment Public Works Forestry Activity Center Office Equipment Activity Center Office Equipment Special Revenue Funds Chemical Assessment Team Fund Economic Development Fund Parking Fund Section 8 Fund Depot Coffee House Fund 2007 $7,600 $2,005 $4,365 $3,024 $10,000 $6,000 $2,000 $7,840 $1,000 $3,000 $30,000 $11,000 $1,000 $2,500 $91,334 CITY OF HOPKINS Total budgeted capital items from all funding sources totals $3,499,684 for 2007. Miscellaneous building items Security card reader for police shooting range door Eagle II directional radar unit Surefire Flash /Hider Adapter and Surefire Suppressor System Asphalt hot box MarcNX traffic control upgrade Miscellaneous forestry equipment Padded stacking chairs for Raspberry Room Phone tree messaging system HazMat Team equipment State of MN Grant funded Land acquisition for development project Parking ramp improvements Office equipment Office furniture and equipment 2007 BUDGET 50 SOURCE Current Revenues Property Tax Intergovernmental Revenues License, Permits and Fines Investment Earnings Charges for Current Services Other Revenue Franchise Fee Total Revenues Current Expenses Salaries and Employee Benefits Materials, Supplies and Services Capital Outlay Total Other Financing Uses Total Expenditures Change in Fund Balance Fund Balance GENERAL FUND BUDGET PROJECTIONS 2006 Projected 7,185,549 711,702 600,449 130,384 199,209 17,765 285,589 9,130,647 6,584,399 1,790,519 60,378 8,43 5,296 8,43 5,296 695,351 CITY OF HOPKINS Approved 2007 Budget 7,557,758 436,010 649,000 109,949 209,800 17,250 290,000 9,269,767 7,054,948 2,155,985 43,834 9,254,767 15,000 9,269,767 51 2008 Budget 7,840,000 435,000 650,000 110,000 210,000 15,000 290,000 9,550,000 7,265,000 2,220,000 50,000 9,535,000 15,000 9,550,000 2009 Budget 8,105,000 440,000 655,000 115,000 215,000 15,000 290,000 9,835,000 7,485,000 2,285,000 50,000 9,820,000 15,000 9,835,000 2010 Budget 8,378,000 445,000 660,000 120,000 225,000 20,000 290,000 10,138,000 7,710,000 2,353,000 60,000 10,123,000 15,000 10,138,000 2011 Budget 8,647,000 450,000 665,000 123,000 235,000 25,000 290,000 10,435,000 7,940,000 2,420,000 60,000 10,420,000 15,000 10,435,000 5,320,185 5,320,185 5,320,185 5,320,185 5,320,185 5,320,185 2007 BUDGET General Fund CITY OF HOPKINS Property tax revenue is the amount needed to fill the gap between budgeted revenues and appropriations. The average increase in levy for the general fund for years 2007 through 2011 is projected to be 3.4 This projection reflects an average annual appropriation increase of 3 These amounts may be reduced through appropriation cuts or new revenue sources. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. An average increase of 8% is estimated for tax base growth. In addition to the normal growth there are several redevelopment projects that will contribute to the increase in the tax base. This translates to a projected decrease in the tax capacity rate over the next 5 years. Franchise fees The City implemented an electric and gas utility franchise fee in 2004 to help offset the amount of tax levy needed to fund general operations. The franchise fee has an optional sunset clause after two years. The franchise fee was set to expire on December 31, 2005, however the City Council reviewed the impacts of this fee and extended the franchise to December 31. 2007. The franchise fee is reviewed annually by the City Council and along with staff continues to analyze its usefulness. Intergovernmental revenue, which decreased substantially in 2003 and 2004,Ieveled off in 2005 and is expected to remain stable in 2007. Following the state aid cuts of 2003 and 2004 funds received by the City of Hopkins from the State have remained the same. In 2004, the City lost the remainder of its local government aid except $50,000, which is used to assist with the operations of the Art Center. Local government aid is derived from sales tax revenues and is allocated by the state legislature. Each year the State reviews its ability to make payments of Local Government Aid and Market Value Credits, and the amount can increase or decrease based upon State Legislative action. In 2007, it is anticipated that the legislature will not change its current allocation of aid the City is to receive. Other significant forms of intergovernmental revenue received by the city include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. Licenses, permits and fines include building permits, which are volatile depending on new construction and remodeling projects. Based on projected new construction projects and historical information a slight increase is projected for 2007 with revenues continuing to show small increases each year. Fine revenue continues to be stable with slight increases due to implementation of license violation and administrative citations. Various programs throughout the City generate charges for services. Charges are usually increased by an inflationary rate. The volume of activity fluctuates every year. This revenue is forecast to increase 1% annually. Interest revenues are expected to remain level over the next five years. This is based on the current state of the economy. Overall revenues will increase each year about 3 The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $9,269,767 and an appropriation budget of the same. The increase in appropriations over 2006 is $381,479 or 4.3 The budget was specifically prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2007, the budget was prepared with the addition of one dispatcher and an enhanced medical response program now provided by the fire department. The medical response program was transferred to the fire department due to increasing numbers of medical calls, which impacted the amount of time the police were available for patrol calls. Other budget considerations were the rising cost of employee health insurance and state mandated increases in employee pension funds along with normal inflationary increases. The council attempts to balance maintaining the current level of services while meeting the increasing needs of the public. 2007 BUDGET 52 CITY OF HOPKINS Despite the addition of a dispatcher and enhanced medical response program an emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff will continue to face budgetary challenges for the next few years as we strive to hold taxes down while meeting the needs of the citizens. Staff continues to explore ways to contain costs and develop new revenue sources so that we can maintain the quality of life Hopkins residents have come to expect. 11,000,000 10,500,000 10,000,000 9,500,000 9,000,000 8,500,000 8,000,000 General Fund Expenditures r� co a) rn m O O 0 o 0) O rn rn D O t) O O 1 O D N m N CO N C N m N m This chart shows 2006 projected actual expenditures along with the 2007 approved budget and projected budgets from 2008 through 20 I I 2007 BUDGET 53 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 General Fund Actual and Projection O O O o h O 0 0 0 O Revenue —St- Expenditure Fund Balance ---X--Levy The general fund tax levy rises in proportion to general fund expenditures. Currently Hopkins relies on its property taxes as its major source of revenue. In fact property taxes account for 82% of General Fund revenues. CITY OF HOPKINS General Fund Appropriation Budget Comparisons Amount 2007 2006 Change Change Council $90,632 $90,822 ($190) -0.21% Administrative Services $413,125 $382,580 $30,545 7.98% Finance $167,226 $151,582 $15,644 10.32% Legal $126,625 $126,600 $25 0.02% Municipal Building $304,960 $314,176 ($9,216) -2.93% Community Services $787,292 $813,262 ($25,970) -3.19% Police $3,883,348 $3,755,403 $127,945 3.41% Fire $732,897 $661,927 $70,970 10.72% Public Works $1,953,606 $1,889,470 $64,136 3.39% Recreation $220,570 $215,635 $4,935 2.29% Activity Center $305,622 $296,706 $8,916 3.00% Planning Economic Dev. $117,864 $95,385 $22,479 23.57% Unallocated $166,000 $94,680 $71,320 75.33% TOTAL $9,269,767 $8,888,228 $381,539 4.29% 2007 BUDGET 54 Revenues Property Taxes Intergovernmental Licenses, Permits and Fines Interest Earnings Charges for Services Franchise Fees Miscellaneous Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Buildings Improvements Vehilces Office Furniture and Equipment Equipment Equipment Allocation Total Expenditures Transfer Out Reimbursed Expenditures Net Total Expenditures Excess (deficiency) of Rev. over Exp. Ending Fund Balance Actual 2003 5,932,258 1,094,005 773,539 101,647 333,085 9,783 8,244,317 4,786,593 1,472,768 568,456 670,440 173,654 533,453 454,721 3,787,910 11,722 12,549 252,035 8,936,391 161,600 (1,265,183) 7,832,809 411,509 CITY OF HOPKINS 2007 BUDGET GENERAL FUND BUDGET Revenues and Expenditures Actual 2004 6,357,981 743,812 687,656 63,664 280,791 242,431 52,699 8,429,034 4,825,371 1,465,851 55 Actual 2005 6,947,865 732,468 671,081 72,883 438,549 307,457 13,160 9,183,461 4,949,253 1,506,524 635,209 718,077 664,519 791,648 221,398 231,359 585,366 591,109 447,900 559,940 18,237 23,918 3,214 11,055 52,556 114,710 252,745 252,708 9,172,365 9,750,300 294,648 537,492 (1,321,364) (1,344,231) 8,145,648 8,943,561 283,385 239,900 4,071,295 4,311,195 Projected Actual 2006 7,185,549 711,701 600,519 167,688 199,209 285,589 17,756 9,168,011 5,072,560 1,526,375 604,472 831,406 257,518 580,172 622,363 1,560 24,998 34,952 281,842 9,838,218 (1,373,209) 8,465,009 703,002 4,774,297 Budget 2006 7,211,078 413,910 634,400 110,000 213,750 290,000 15,150 8,888,288 5,114,493 1,533,177 749,433 827,520 473,580 607,746 560,552 17,000 24,300 32,400 279,193 10,219,394 17,000 (1,348,106) 8,888,288 Budget Percent 2007 Change 7,557,758 9.28% 436,010 -1.53% 644,500 -2.41% 109,949 14.48% 214,300 56.18% 290,000 17,250 75.03% 9,269,767 8.95% 5,422,633 1,632,316 2.57% 2.77% 760,130 13.05% 835,541 19.13% 491,593 4.50% 144,254 0.98% 588,328 25.01% 7,600 100.00% 8,840 25,389 118.26% 282,643 -0.01% 10,199,267 6.30% 15,000 82.42% (944,500) 1.73% 9,269,767 9.80% 4,311,195 4,774,297 5.89% Expenditures Materials, Supplies and Services Professional Technical Services Operations 102,527 48,393 Supplies and Materials CITY OF HOPKINS 2007 BUDGET UNALLOCATED Revenues and Expenditures Projected YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Revenues Property Taxes 5,932,258 6,357,981 6,947,864 7,185,549 7,211,078 7,557,758 4.81% Intergovernmental Revenue 693,574 314,785 300,497 287,347 20,510 20,510 Interest earnings 92,819 48,918 72,883 160,939 110,000 109,949 -0.05% Franchise Fees 242,431 307,457 285,589 290,000 290,000 Miscellaneous 14,746 (4,647) 6,504 Total Revenues 6,718,651 6,978,861 7,624,054 7,925,928 7,631,588 7,978,217 4.54% Capital Outlay Improvements Computers 56 166,273 151,000 -9.19% Operating Transfers Transfer to other funds 15,953 294,648 537,492 17,000 15,000 11.76% Total Expenditures 118,480 343,041 537,492 183,273 166,000 -9.42% Indirectly Funded Amount 6,600,171 6,635,821 7,086,562 7,925,928 7,448,315 7,812,217 4.89% The Unallocated program is where unallocated revenues are recorded and unallocated or unforseen expenditures are allocated from. General Fund Revenue and Expenditure Highlights PERA aid Transfer for Paratransit GENERAL FUND PROGRAM: Unallocated PROGRAM SUMMARY The purpose of the unallocated program of the General Fund is to provide budget for unforeseen or unusual expenditures that may occur in a given year. The revenues recorded here are revenues that are not directly associated with another program within the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Maintain the current funding level for contingency. FUND 101 REVENUES: Property Taxes Intergovernmental Interest Earnings Franchise Fee Miscellaneous EXPENDITURES: Materials, Supplies Services Operating Transfer Total Expenditures FY 2006 Approved Budget $7,211,078 20,510 110,000 290,000 166,273 17,000 183,273 FY 2007 Approved Budget $7557,758 20,510 109,949 290,000 Total Revenues 7,656,588 7,978,217 4.5% NET TAX AND GENERAL $7,473,315 $7,812,217 REVENUE Percent Change 4.8% 0% 0% 0% 151,000 -9.2% 15,000 -11.8% 166,000 -9.4% 4.5% 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 General Fund Revenues 2003 2004 2005 2006 2007 Property Taxes —U— Intergovernment al Licenses, Permits Fines x Interest Earnings Charges for Service to— Franchise Fees Miscellaneous 57 Revenues Contributions and Donations Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Total Expenditures Indirectly Funded Amount Actual 2003 CITY COUNCIL BUDGET Revenues and Expenditures YTD Actual Actual Actual 2004 2005 2006 25,250 24,869 23,780 2,086 2,138 2,050 8,516 20,030 14,933 32,425 25,324 33,829 8,305 7,956 8,172 4,226 4,898 5,436 80,807 85,215 88,200 80,807 85,215 88,200 CITY OF HOPKINS 2007 BUDGET 58 24,198 2,072 13,544 33,131 8,077 4,228 Budget 2006 24,400 24,400 2,097 2,097 9,300 10,350 44,080 43,200 9,040 2,535 8,410 8,050 The City Council Department is made up of two programs. They are Council Activity and Health and Welfare. Budget Percent 2007 Change 11.29% -2.00% 71.96% 4.28% 85,248 97,327 90,632 6.88% 85,248 97,327 90,632 6.88% General Fund Revenue and Expenditure Highlights Mayor and Council Audit consulting Post, print, train misc. Occupancy, insurance Office supplies equip. COUNCIL FUND 101 PROGRAM: Council Administration PROGRAM SUMMARY The Council Administration program of the Council Department establishes city policies, goals and objectives. It approves the budget and monitors the activities of the City Manager and City Attorney. The council also appoints members to boards and commissions. The City Council holds regular meetings and work sessions, receives input from staff, citizens and other interested parties. The Council controls policy through changes in the City Code and Legislative Policies. They control spending through their review and approval of the City budget and various contracts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Conduct meetings with groups /organizations (Faith Community, Neighborhood Assoc., ISD 270, HBCA) in areas of mutual interest 2. Promote city marketing efforts through the "Think Hopkins" campaign 3. Conduct 2007 Citizen Academy 4. Publish 2006 City Annual Report 5. Conduct 2007 State of the City event EXPENDITURES: Salaries /Wages /Benefits FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $26,497 $26,497 -.0% Materials, Supplies Services 69,780 63,085 -9.5% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions $96,277 $89,582 -6.9% Mayor and 4 Council 59 COUNCIL FUND 101 PROGRAM: Health and Welfare PROGRAM SUMMARY The Health and Welfare program of the Council Department provides funding to social organizations operating within the City. It also provides funds to the Human Rights commission. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to support local programs FY 2006 Approved Budget Salaries /Wages /Benefits EXPENDITURES: Materials, Supplies Services 1,050 Capital Outlay FY 2007 Approved Budget NET TAX AND GENERAL REVENUE SUPPORTED $1,050 $1,050 0% PERSONNEL: Number of FTE positions 0 0 1,050 Percent Change 0% I :x penditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount CITY OF HOPKINS 2007 BUDGET ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual 2003 2004 2005 2006 268,032 201,604 287,125 300,196 305,968 336,166 9.87% Three one-half full time employees 77,792 65,849 95,578 107,236 94,655 119,594 26.35% Health, dental, life, FICA, PERA Budget 2006 12,280 10,287 19,905 2,388 10,750 9,100 15.35% 4,606 2,104 1,846 2,300 4,725 6,465 36.83% 20,918 7,866 16,245 18,155 30,395 31,045 2.14% 16,317 10,511 10,542 18,814 18,877 3,076 -83.71% 4,582 5,652 7,052 5,838 9,495 6,680 29.65% 404,527 303,872 438,292 454,926 474,865 512,126 7.85% (103,625) (102,786) (102,786) (87,200) (87,200) (99,000) 13.53% 300,902 201,086 335,506 367,726 387,665 413,126 6.57% 300,902 201 ,086 335,506 367,726 387,665 413,126 6.57% The Administrative Services Department is made up of seven programs. They are Administration, Legislation, Agenda, Personnel, Capital Improvement Plan, Wellness and Information Services. Budget 2007 Percent Change General Fund Revenue and Expenditure Highlights Audit and other consulting services Equip. maint., tele. cell phone Post., print, train, picnic misc. Space and occupancy, insurance, equip. Office supplies and small equipment Charges to other funds for services ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Administration PROGRAM SUMMARY The Administration program of the Administrative Services Department provides leadership and support to all city programs and operations. Administration controls and directs the City's affairs. It responds to citizen concerns and participates in affiliated organizations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continued implementation and evaluation of the new performance management system. 2. Enhance Leadership and Development Training for City Council and city employees 3. Continue to upgrade technology and the city website 4. Conduct a city -wide survey FY 2006 Approved Budget EXPENDITURES: Salaries /Wages/Benefits $92,057 29,570 (40,000) Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2007 Approved Budget $100,953 25,947 (45,000) $81,647 $81,900 1.75 .95 Percent Change 9.7% -12.3% 12.5% 0.3"/o 61 ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Legislation PROGRAM SUMMARY The Legislation program of the Administrative Services Department monitors and recommends legislative actions through the state. This includes ensuring that legislative policies and procedures adopted by the city are complied with. Also that legislation is necessary for the welfare of the people and the efficient administration of the City's affairs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Prepare 2007 legislative agenda. 2. Continue to monitor the legislative activities each year. 3. Lobby on issues affecting the City of Hopkins. EXPENDITURES: Salaries /Wages/Benefits Materials, Supplies Services Capital Outlay FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $20,140 $21,752 8.0% 714 168 -76.5% NET TAX AND GENERAL REVENUE SUPPORTED $20,854 $21,920 5.1"A) PERSONNEL: Number of FTE positions .18 .2 ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Agenda PROGRAM SUMMARY The Agenda program of the Administrative Services Department keeps the council informed through meetings and correspondence. This includes the preparation of the weekly agenda and council updates. Ensures that charter, laws, policies and resolutions passed by the council are recorded and enforced. The council is provided information regarding all city affairs and city status. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Weekly packets out to Council on time. 2. Enhanced use of the Internet to provide information on agendas and packet material. 3. Explore the use of "paperless packets EXPENDITURES: Salaries /Wages/Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures FY 2006 Approved Budget $49,759 2,660 (18,530) FY 2007 Approved Budget NET TAX AND GENERAL REVENUE SUPPORTED $33,889 $34,835 PERSONNEL: Number of FTE positions .75 .6 $53,803 1,032 (20,000) Percent Change 8.1% -61.2% 7.9% 2.8% 62 ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Personnel PROGRAM SUMMARY The Personnel program of the Administrative Services Department provides human resource support for departments, employees and organized unions. This includes coordination of staff recruitment, coordination of employee benefit programs and conducting employee relations' activities for all City employees. Another aspect of this program is ensuring compliance with state, federal and local laws regarding employment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Coordinate work of City -wide safety committee. 2. Negotiate and administer reasonable compensation and benefit levels for City staff. 3. Coordinate the hiring of employees. EXPENDITURES: Salaries/Wages/Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $48,757 6,278 $62,877 5,072 (12,025) (14,000) 16.4% $43,010 $53,949 25.4% .45 .55 ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Capital Improvement Planning PROGRAM SUMMARY The Capital Improvements program of the Administrative Services Department coordinates the annual Five Year Capital Improvement Plan for the City. This plan encompasses all infrastructure and major capital changes proposed for the city for the next five years. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Continue to diligently coordinate the planning of future projects for the city. 2. Improve on presentation of CIP to council. 3. Add graphics to the plan EXPENDITURES: Salaries /Wages/Benefits Materials, Supplies Services Capital Outlay FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $12,447 $13,368 7.4% 913 784 -14.1% NET TAX AND GENERAL REVENUE SUPPORTED $13,360 $14,152 PERSONNEL: Number of FTE positions .15 .15 5.9`%, 63 ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Wellness PROGRAM SUMMARY The Wellness program of the Administrative Services Department provides support and activities to encourage overall general good health of city employees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to provide healthy guidance to employees. 2. Coordinate the efforts of the Wellness Committee. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change EXPENDITURES: Salaries /Wages /Benefits $6,730 $7,069 5.0% Materials, Supplies Services 2,030 2,030 Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $8,760 $9,099 3.9% PERSONNEL: Number of FTE positions .1 ADMINISTRATIVE SERVICES FUND 101 PROGRAM: Information Services PROGRAM SITMMARY The Information Services program of the Administrative Services Department provides all network hardware and software support for the City. It also provides individual city employees with hardware and software support. The internal web site is designed and maintained through this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Retire Exchange 5.5 server and move existing users to Exchange 2003. 2. Completely replace current backup solution. 3. Continue to evaluate the feasibility of integrating Police network with the rest of the City network. 4. Continue to update and improve network security, efficiency, and reliability. 5. Rewire city hall. 6. Upgrade squad car computers. 7. Install new LaserFiche server. 8. Replace CAD server. 9. Complete an IT business continuity /disaster recovery plan and integrate it into the overall city disaster plan. 64 EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 170,733 195,937 14.8% 32,057 21,333 -33.5% (16,645) (20,000) 20.2% 186,145 197,270 6.0% 2.1 2.1 Revenues Miscellaneous Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Equipment Allocation Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount CITY OF HOPKINS 2007 BUDGET FINANCE BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget 2003 2004 2005 2006 2006 2007 4,923 3,751 7,426 7,753 2,200 2,200 222,779 221,017 229,868 237,466 235,498 245,148 4.10% Four full time employees 59,414 61,979 60,445 64,172 62,117 65,644 5.68% 7,066 3,426 7,066 17,576 4,915 6,610 34.49% 12,599 14,141 14,423 13,786 15,030 15,450 2.79% 7,066 10,456 14,098 11,218 9,985 18,295 83.22% 8,344 8,260 8,294 8,120 8,394 441 94.75% 10,553 9,959 7,844 6,651 9,550 11,090 16.13% 5,876 9,672 9,672 3,847 4,444 2,548 42.66% 333,697 338,909 351,711 362,836 349,933 365,226 4.37% (186,781) (185,341) (184,778) (193,350) (193,350) (198,000) 2.40% 146,916 153,568 166,933 169,486 156,583 167,226 6.80% 141,993 149,817 159,507 161,733 154,383 165,026 6.89% The Finance department consists of nine programs. They are Benefit Administration, Budgeting, Cash Management, Debt Management, General Accounting, Payroll, Risk Management, Tax Increment Finance Reporting and Utility Billing. 65 Percent Change General Fund Revenue and Expenditure Highlights Audit, consulting other Software maint telephone Post, print, advtg, train, misc. Space and occupancy, ins. Office supplies and small equip Computer software allocation Chargebacks for acctg serv. FINANCE FUND 101 PROGRAM: Benefit Administration PROGRAM SUMMARY The benefit administration program of the Finance Department provides benefit information and administration to employees of the City of Hopkins and the Housing and Redevelopment Authority. This program administers health, dental, life, short and long -term disability and workers compensation insurances. It also includes flexible spending account administration and deferred compensation administration. Benefit administration reconciles insurance reports, files claims and assists employees with all benefit related needs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 I. Implement GASB 45 regarding Other Post Employment Benefits. 2. Work with Insurance Committee to evaluate insurance renewal options. 3. Assist employees with benefit needs. EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 Approved Budget FY 2007 Approved Percent Budget Change $15,785 $16,699 5.8% 2,238 807 -63.9% (4,855) (5,000) 3.0% $13,168 $12,506 -5.0% .2 .2 66 FINANCE FUND 101 PROGRAM: Budget PROGRAM SUMMARY The budget program of the Finance Department coordinates and prepares the annual budget. It also prepares the 20 -year equipment replacement plan and assists the City Manager with the capital improvement plan preparation. This includes meeting with departments and administrators to determine the overall goals and funding requirements for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Apply for the Government Finance Officers Budget Award. 2. Update the 20 -year Equipment Replacement Plan 3. Update budget presentation and work to get budget document on the website. 4. FY 2006 Approved Budget EXPENDITURES: Salaries /Wages/Benefits $27,076 $28,809 Materials, Supplies Services 4,225 3,734 Capital Outlay Reimbursed Expenditures FY 2007 Approved Percent Budget Change (11,600) (12,000) 3.45% NET TAX AND GENERAL REVENUE SUPPORTED $19,701 $20,543 4.3% PERSONNEL: Number of FTE positions .3 .3 FINANCE FUND 101 PROGRAM: Cash PROGRAM SUMMARY The cash program of the Finance Department invests, records and forecast cash flows for the city. Cash is invested according to state statute and city investment policies. Cash flow projections are prepared for all funds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Invest public funds in a manner, which will provide the highest investment return with minimum risk while meeting daily cash flow needs 2. Maintain and update cash flow projections. EXPENDITURES: Salaries/Wages /Benefits 28,180 29,633 5.2% 5,463 3,931 -28.0% Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change (11,660) (12,000) 2.9% $21,983 .4 .4 $21,564 -1.9% 67 FINANCE FUND 101 PROGRAM: Debt PROGRAM SUMMARY The Debt program of the Finance Department issues, records and maintains debt for the City of Hopkins and the Hopkins Housing Rehabilitation Authority. Debt is issued in accordance with state statute and city charter. Debt is maintained at a manageable level for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Maintain the current bond rating of AA- through conservative financial management and accurate reporting of financial and economic conditions of the city. 2. Project future debt needs and ability. 3. Prepare documents and work with financial advisors for 2007 Improvement Bond issue EXPENDITURES: Salaries/Wages/Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $9,590 $10,229 6.7% 270 204 -24.4% (9,860) (10,450) 5.9% $0 -17 0% .10 .10 FINANCE FUND 101 PROGRAM: Accounting PROGRAM SUMMARY The Accounting program of the Finance Department provides financial management for the City and the Housing and Redevelopment Authority. It provides support services to other departments in the City through initiating fiscal plans, implementation and control of those plans, accounting and analysis of transactions. Accounting manages the city's day -to -day accounting transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The program prepares monthly and quarterly financial statements and compiles the year -end comprehensive financial report. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Apply for Comprehensive Annual Financial Report reporting award. 2. Provide accurate and timely month -end and quarterly financial reports. 3. Complete implementation of finance software. REVENUES: EXPENDITURES: Salaries /Wages/Benefits FY 20056 FY 2007 Approved Approved Budget Budget 1,200 1,200 $71,850 $76,240 17,187 22,639 (29,000) (31,000) Percent Change 0% Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED $58,837 $66,679 13.3% PERSONNEL: Number of FTE .ositions 1.05 1.05 68 FINANCE FUND 101 PROGRAM: Payroll PROGRAM SUMMARY The Payroll program of the Finance Department completes the biweekly payroll, maintains all payroll records and completes the payroll quarterly reports. It also provides support services to employees regarding payroll issues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist employees with payroll issues /questions. 2. Provide accurate and timely payroll and reports. EXPENDITURES: Salaries Wages/Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $39,027 $41,090 5.3% 7,006 7,796 11.3% (13,500) (14,000) 3.7% $32,533 $34,866 7.2% .6 .6 FINANCE FUND 101 PROGRAM: Risk Management PROGRAM SUMMARY The Risk Management program of the Finance Department maintains the property, fleet and general liability insurances for the city. It also maintains the workers compensation insurance and unemployment benefit insurance. It accomplishes this goal by working with outside brokers and agents to arrive at an equitable coverage for the city and its constituents and employees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Ensure adequate coverage for all property of the city. 2. Encourage employee safety to keep workers compensation insurance low. EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures FY 2006 Approved Budget NET TAX AND GENERAL REVENUE SUPPORTED $10,601 PERSONNEL: Number of FTE positions .2 FY 2007 Approved Percent Budget Change $14,095 $14,817 5.1% 506 279 -44.9% (4,000) (4,000) 1.6% $11,096 4.7% .2 69 FINANCE FUND 101 PROGRAM: TIF Administration PROGRAM SUMMARY The Tax Increment Financing Administration program of the Finance Department records and reports tax increment program activities. It is charged with the responsibility of ensuring compliance with state statutes and guidelines. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue analysis of Tax Increment Financing funds. 2. Assist with implementation of new TIF districts. EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 Approved Budget FY 2007 Approved Percent Budget Change $9,594 $10,231 6.4% 695 609 -12.3% (10,425) (10,850) 4.0% 136) .10 .10 ($10) 92.8% FINANCE FUND 101 PROGRAM: Utility Billing PROGRAM SUMMARY The Utility Billing program of the Finance Department prepares and issues monthly utility bills for collection of utility service fees from its customers. Utility records are maintained and updated within this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Complete software conversion and resolve remaining issues. 2. Explore E- commerce for utility customers. 3. Complete monthly billing implementation in areas where radio read meters are installed. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: Current Services $1,000 $1,000 0% EXPENDITURES: Salaries /Wages /Benefits 82,418 83,044 .8% Materials, Supplies Services 14,728 14,435 -2.0% Capital Outlay Reimbursed Expenditures (98,450) (98,700) .3% NET TAX AND GENERAL REVENUE SUPPORTED ($2,304) ($1,221) -6.4 PERSONNEL: Number of FTE positions 1.65 1.65 70 Recycle /Yard Waste $2.75 per month Refuse 30 Gallon 60 Gallon 90 Gallon $13.20 15.90 17.25 Water and Sewer Water is $1.40 per 1000 gallons Sanitary Sewer is $2.50 per 1000 gallons of water used Storm Sewer $4.50 per month. State Solid Waste Charge of 9.75% calculated on the Refuse portion of the bill State Health Fee $5.21 per year Hennepin County Charge of 9% calculated on the Refuse portion of the bill. Revenues Court Fines CITY OF HOPKINS 2007 BUDGET LEGAL BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 95,228 93,181 93,156 115,195 96,000 96,000 Expenditures Materials, Supplies and Services Professional Technical Services 119,871 117,680 115,956 133,753 126,000 126,000 Legal services Operations 600 625 745 600 625 4.17% Memberships Total Expenditures 119,871 118,280 116,581 134,498 126,600 126,625 0.02% Indirectly Funded Amount 24,643 25,099 23,426 19,304 30,600 30,625 0.08% The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 71 General Fund Revenue and Expenditure Highlights LEGAL FUND 101 PROGRAM: Legal PROGRAM SUMMARY The Legal department represents the City in court, at City Council meetings and direct contact with staff and the general public. The firm of Miller Steiner Curtiss is retained on a fee per hour basis. They respond to legal summons and/or initiate action on behalf of the City. Written and oral inquiries are made by staff, council, citizens and other interested parties. The city engages other law firms when necessary. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City REVENUES: The City contracts with a legal firm to represent the City. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $96,000 $96,000 0% EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services 126,600 126,625 .02% Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED $30,600 $30,625 .08% 72 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $o City Legal Costs 2002 2003 2004 2005 2006 2007 Legal Service —f— Prosecution Revenues Sale of Fixed Assets Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Buildings Structures Office Furniture and Equipment Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount MUNICIPAL BUILDING BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual 2003 2004 2005 2006 54,556 19,791 33,240 116,131 480 14,668 6,298 245,164 (167,760) 77,404 77,404 2,419 3,122 2,400 50,724 19,152 41,421 91,897 680 9,422 8,672 15,537 237,505 (172,500) 65,005 62,586 CITY OF HOPKINS 2007 BUDGET 74,279 32,009 61,267 133,471 991 8,997 19,971 330,985 (172,500) 158,485 155,363 The Municipal Building Department consists of building maintenace. 73 Budget 2006 Budget 2007 2,400 81,244 80,616 86,342. 7.10% full time employee 27,070 25,230 26,857 6.45% 49,340 56,000 47,000 134,226 132,650 146,050 3,371 3,300 2,800 11,669 10,562 10,491 15,779 15,545 15,720 1,560 10,850 7,600 6,603 330,863 334,753 342,860 (171,498) (167,760) (38,000) 159,365 166,993 304,860 156,965 166,993 302,460 Percent Change 16.07% 10.10% 15.15% -0.67% 1.13% 29.95% 2.42% 77.35% 82.56% 81.12% General Fund Rev enue and Expenditure Highlights Weekend cleaning service Equip maint., teleph, heat elect. Training and miscellaneous Insurance, equip. Office supplies small equipment Space occup. Chargebacks MUNICIPAL BUILDING FUND 101 PROGRAM: Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Municipal Budget covers City Hall and the Police Department. In house maintenance personnel and contractual custodial services maintain these buildings and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. City Hall wall covering replacement project. 2. City Hall carpeting replacement project. 3. City Hall HVAC replacement/improvement project. REVENUES: Charges for service FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 0 2,400 EXPENDITURES: Salaries /Wages /Benefits 105,846 113,199 6.9% Materials, Supplies Services 218,157 222,161 1.8% Capital Outlay 10,850 7,600 30.0% Reimbursed Expenditures (167,760) (38,000) -77.3% NET TAX AND GENERAL REVENUE SUPPORTED $167,093 $302,560 81.7% PERSONNEL: Number of FTE positions 1.45 1.45 74 Original City Hall at 8 Ave and Mainstreet St Revenues Licenses Permits Current Services Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Equipment Allocation Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual 2003 2004 2005 2006 43,301 43,442 43,900 55,620 505,573 378,825 325,300 262,202 186,240 124,911 93,750 63,596 521,714 131,350 45,929 14,020 21,774 35,513 9,261 3,253 782,814 (21,500) 761,314 26,200 476,843 137,426 93,073 8,903 14,677 87,136 9,786 1,492 3,216 832,552 (34,045) 798,507 251,329 CITY OF HOPKINS 2007 BUDGET 444,847 108,021 112,525 9,177 13,690 87,295 12,670 3,319 791,544 (54,562) 736,982 274,032 75 481,052 110,899 30,644 11,796 17,976 58,051 10,145 11,055 4,997 736,615 (56,762) 679,853 298,435 Budget 2006 40,400 350,500 94,400 The Community Service department is made up of four main programs. They are Reception, Assessing, Inspections, and City Clerk. Budget Percent 2007 Change 43,500 7.67% 354,000 1.00% 98,250 4.08% 138,340 127,725 -7.67% 13,480 12,000 10.98% 25,862 26,870 3.90% 86,099 43,127 -49.91% 10,900 12,560 15.23% 6,195 6,729 882,321 845,792 -4.14% (56,762) (58,500) 3.06% 825,559 787,292 -4.64% 340,259 291,542 14.32% General Fund Revenue and Expenditure Highlights Building permits Plan check fees 484,916 502,032 3.53% Ten full time employees 116,529 114,749 -1.53% Health inspec., assessing consult.. Equip vehicle maint. telephone Postage, print, adver, train, misc. Space occup., incur. Admin fee Office supplies and small equipment 8.62% Computer equipment allocation Charges to other funds COMMUNITY SERVICES FUND 101 PROGRAM: Receptionist PROGRAM SUMMARY The Receptionist program of the Community Services Department answers calls at main switchboard and route calls to various departments. Directs walk -in customers to the appropriate department. Sales of Hop -A -Ride tickets, dog licenses and parking permits occur in this program. Receipts are accepted for payment of building permits and utility bills. The program also provides clerical and secretarial services to other departments. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Enter utility receipts into the finance system. 2. Continue to assist customers quickly and accurately. EXPENDITURES: Salaries /Wages /Benefits $43,885 $39,024 -11.8% Materials, Supplies Services Capital Outlay PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 1,848 752 -59.3% NET TAX AND GENERAL REVENUE SUPPORTED $45,733 $39,766 .13.0% 1.45 1.45 76 The receptionists handle more than 30,000 calls per year and assist over 10,000 visitors. COMMUNITY SERVICE ASSESSING FUND 101 PROGRAM: Assessing PROGRAM SUMMARY The Assessing Department assists property owners with Homestead classification and works with Hennepin County on property valuations. The department also prepares special assessment rolls and responds to property owner concerns and questions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Prepare special assessment rolls for certification on taxes. 2. Investigate special assessment software for better tracking of special assessments 3. Assist property owners with property related issues. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $300 $750 150% EXPENDITURES: Salaries /Wages /Benefits 70,271 67,932 -3.33% Materials, Supplies Services 101,730 92,687 -.8.9% Capital Outlay Reimbursed Expenditures (20,762) (22,000) 5.9% NET TAX AND GENERAL REVENUE SUPPORTED $150,939 $138,619 -8.3% PERSONNEL: Number of FTE positions 1.05 1.05 77 Who gets your property tax dollars? Based on Payable 2007 Property Taxes EXAMPLE: Property Tax on an $218,000 Hopkins home is: $2,401 RETURNED AS SERVICES $1,007 Police Protection Fire Protection Emergency Medical Service Street Maintenance Snow Plowing Recreation Programs Park System Activity Center Building Inspections Economic Development General Government Hennepin County $853 Other Special Taxing Districts $126 City of Hopkins $1,007 This illustration does not take into account market value referendum taxes COMMUNITY SERVICES CITY CLERK FUND 101 PROGRAM: City Clerk PROGRAM SUMMARY The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business licenses applications are reviewed prior to issuance. The City Clerk is also the purchasing officer of the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Ensure that historical documents, minutes and agendas, are available through the Web site. 2. Make applications and forms available on the Web site. 3. Maintain best price for highest quality standard. 4. Manage use of purchase requisitions and purchase orders. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of. FTE positions FY 2006 Approved Budget $9,500 FY 2007 Approved Percent Budget Change $13,000 36.8% 54,699 49,243 -9.8% 13,201 8,327 -36.9% (24,500) (25,000) 2.0% $33,900 $19,570 -42.3% 0.6 0.6 78 COMMUNITY SERVICES CITY CLERK FUND 101 PROGRAM: Records Management PROGRAM SUMMARY The Records Management program of the Community Services Department reviews City records to ensure that necessary documents are retained and outdated documents are disposed. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Complete revision of Records Retention Schedule 2. Continue to transfer permanent records to electronic storage and integrate with the Web site. 3. Work with IT to establish procedures for the retention or disposal of e- mails. EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $27,528 $37,666 36.8% 8,516 11,347 33.2% (11,500) (11,500) 0% $25,544 $37,513 52.3% 0.20 0.39 COMMUNITY SERVICES FUND 101 PROGRAM: Elections PROGRAM SUMMARY The Elections program of the Community Services Department provides supervision of elections, registers voters, and certifies election results. All state and federal legislation is reviewed, judges are trained, equipment and polling places are prepared. After elections ballots are counted and the results certified to the County and State of Minnesota. Throughout the year citizens are registered to vote. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Investigate alternative Polling Place locations for Precincts Two and Seven. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: 0 0 0% EXPENDITURES: Salaries /Wages /Benefits 12,968 25,419 96.2% Materials, Supplies Services 22,408 12,457 -44.4% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $33,376 $37,876 7.0% PERSONNEL: N umber of FTE positions 0.1 0.3 79 COMMUNITY SERVICES INSPECTIONS FUND 101 PROGRAM: Building Code Inspection PROGRAM SUMMARY The Building Code Inspection program of the Community Services Department inspects all new or remodeled buildings to insure they meet the minimum requirements of the state building code. The process begins with a plan review; permit issuance, inspection of construction phases and an issuance of a certificate of occupancy. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Implement new permit software. 2. Work with Assessing and other departments on creating joint filing system. 3. Review and develop permit system reports to replace current "shadow system data bases" and to provide reports for management analysis. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $330,000 $333,000 .9% EXPENDITURES: Salaries /Wages /Benefits 199,856 193,181 -.3.3% Materials, Supplies Services 101,810 72,555 -28.7% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $(28,334) $(67,264) 137.4% PERSONNEL: Number of FTE positions 2.62 2.43 80 COMMUNITY SERVICES INSPECTIONS FUND 101 PROGRAM: Fire Code Inspection PROGRAM SUMMARY The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue the fire prevention inspection program. 2. Implement new fire code software. FY 2006 Approved Budget EXPENDITURES: Salaries /Wages /Benefits $24,425 Materials, Supplies Services 1,164 Capital Outlay FY 2007 Approved Budget $36,396 845 Percent Change 49.0% -27.4% NET TAX AND GENERAL REVENUE SUPPORTED $25,589 $37,241 45.5% PERSONNEL: Number of FTE positions .27 .41 FUND 101 COMMUNITY SERVICES INSPECTIONS PROGRAM: Heating and Plumbing Code Inspection PROGRAM SUMMARY The Heating and Plumbing Code Inspection program of the Community Services Department inspects new and remodeled buildings for heating and plumbing compliance. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Implement new permit system software. 2. Adopt new codes as they become available from the state. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $71,000 $74,000 4.2% 80,637 77,891 -3.4% 7,245 5,517 -23.8% NET TAX AND GENERAL REVENUE SUPPORTED $16,882 $9,408 -44.3% 1.09 1.04 81 COMMUNITY SERVICES INSPECTIONS FUND 101 PROGRAM: Housing Inspection PROGRAM SUMMARY The Housing Inspection program of the Community Services Department inspects all existing buildings from time to time to insure they are maintained safe in accordance with city housing code. Rental properties are inspected every five years to identify hazards to the occupants and to insure buildings are well maintained and to improve on the city's housing stock. Homes being sold in the community must be evaluated. A listing of certified evaluators for the Truth in Housing program are maintained. Home sales are monitored to insure compliance. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Implement new rental licensing program -add staff inspect 1& 2 family rental units on a 2 -year cycle. 2. Implement new rental licensing software. 3. Support Blake Road Corridor initiative. REVENUES: FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $48,500 $49,000 1.0% EXPENDITURES: Salaries /Wages /Benefits 41,544 43,212 4.0% Materials, Supplies Services 5,115 4,129 -19.3% Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED ($1,841) ($1,659) -9.9% PERSONNEL: Number of FTE positions .6 .6 COMMUNITY SERVICES INSPECTIONS FUND 101 PROGRAM: Restaurant and Hotel Inspection PROGRAM SUMMARY The Restaurant and Hotel Inspection program of the Community Services Department contracts with a health inspector to make regular inspections of restaurants and food establishments. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Complete all required inspections and respond to complaints in a prompt manner. REVENUES: $26,000 $26,000 EXPENDITURES: Salaries/Wages /Benefits 3,650 Materials, Supplies Services 18,527 Capital Outlay FY 2006 FY 2007 Approved Approved Budget Budget 3,656 17,704 NET TAX AND GENERAL REVENUE SUPPORTED $(3,823) $(4,640) PERSONNEL: Number of FTE positions .06 .06 Percent Change 0% .2% -4.4% 21.4`%, 82 COMMUNITY SERVICES INSPECTIONS PROGRAM: Miscellaneous Community Inspection FUND 101 PROGRAM SUMMARY The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue with spring and fall sweeps and respond to citizen complaints in a prompt and courteous manner. 2. Implement new "Call Center" customer service /complaint software. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 0% 41,982 43,161 2.8% 4,420 2,691 -39.2% NET TAX AND GENERAL REVENUE SUPPORTED $46,402 $45,852 1.2'%► .61 .61 Revenues Intergovernmental Licenses Court Fines /Forfeitures Penalties Current Service Miscellaneous Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Vehicles Office Furniture and Equipment Equipment Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount POLICE BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 182,603 181,542 192,153 203,265 171,900 197,000 14.60% 82,878 92,559 89,626 96,687 92,300 91,000 -1.41% 37,021 61,674 72,311 53,723 45,000 45,000 4,718 5,163 1,000 3,500 38,855 52,956 60,492 56,731 41,400 38,900 -6.04% 7,780 10,323 11,260 4,236 9,500 2,750 71.05% 2,164,867 2,348,403 624,985 640,592 132,229 109,680 111,739 111,611 42,998 38,895 463,963 491,204 120,189 119,498 5,456 1,722 9,581 3,666,425 3,871,186 (306,752) (301,887) 3,359,674 3,569,299 3,010,537 3,170,245 2,347,331 650,798 102,778 132,026 44,752 492,521 134,217 23,918 49,791 3,978,133 (301,887) 3,676,246 3,245,686 83 2,337,174 2,407,717 650,153 612,901 106,271 116,203 138,815 151,400 70,022 64,120 512,612 511,618 163,518 145,690 2,547,825 5.82% 717,050 16.99% 110,253 -5.12% 139,906 -7.59% 67,770 5.69% 138,711 72.89% 154,445 6.01% #DIV /0! 7,340 10,100 1,800 7,389 310.50% 3,985,905 4,021,549 3,883,349 -3.44% (302,000) (302,000) 100.00% 3,683,905 3,719,549 3,883,349 4.40% 3,264,101 3,358,449 3,505,199 4.37% The Police Department is made up of eleven programs. They are Administration, Patrol, Heat Team, Reserves, Investigations, Metro Drug Task Force, Pawn Shop, Outreach, Dispatch, Records and Receiption and Systems Information. General Fund Revenue and Expenditure Highlights State grants Liquor licenses Thirty nine full time employees Prisoner Board, hiring, consult. Veh. equip. maint. repair, tele. Training, advertising and misc. Admin chrg, space alloc. ins. Off. supp., uniforms small equip. Heat team Crime Prev vehicles Computer software system Credit to Admin from police prog. POLICE FUND 101 PROGRAM: Administration PROGRAM SUMMARY The Administration program of the Police Department provides 24 -hour staffing of police and support services for delivery and supervision of emergency and non emergency services to the community. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to develop individual employee work plans to integrate community policing goals. 2. Continue to seek grant funding. 3. Coordinate study of the Blake Road Corridor with the Wilder Foundation regarding resident concerns. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change EXPENDITURES: Salaries /Wages /Benefits $313,088 $334,799 7.0% Materials, Supplies Services 136,126 105,723 -22.3% Capital Outlay Reimbursed Expenditures (302,000) 0 -100% NET TAX AND GENERAL REVENUE SUPPORTED $147,134 $440,522 199% PERSONNEL: Number of FTE positions 3.15 3.15 84 POLICE FUND 101 PROGRAM: Patrol PROGRAM SUMMARY Work with citizens to improve the quality of life by implementing effective prevention strategies to reduce crime and improve traffic safety. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Expand the Neighborhood Officer program .and continue with the Blake Road Corridor project. 2. Utilize monies obtained from DWI forfeitures to fund special DWI enforcement projects. 3. Support the Hopkins Police /Fire Department Chaplain program. 4. Provide leadership training for senior officers to provide advancement opportunities within the department. FY 2006 Approved Budget REVENUES: $219,900 $244,250 FY 2007 Approved Percent Budget Change EXPENDITURES: Salaries /Wages /Benefits 1,790,472 1,760,226 -1.7% Materials, Supplies Services 431,251 234,827 -45.6% Capital Outlay 1,800 4,365 142% NET TAX AND GENERAL REVENUE SUPPORTED $2,003,623 $1,755,168 -12.4% PERSONNEL: Number of FTE positions 21.5 20.55 85 POLICE FUND 101 PROGRAM: Heat Team PROGRAM SUMMARY The High -risk entry and tactics team (HEAT team) of the Hopkins Police Department is part of a 5 city tactical consortium that provides tactical and rescue operations in situations posing a high -risk to civilians and /or department personnel. The members of the consortium train together and provide support during high -risk events. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to maintain a strong working relationship with other consortium members. REVENUES: EXPENDITURES: FY 2006 FY 2007 Approved Approved Percent Budget Budget Change Salaries /Wages /Benefits $36,567 $38,766 6.0% Materials, Supplies Services 21,157 14,838 -29.9% Capital Outlay 0 0 -100% NET TAX AND GENERAL REVENUE SUPPORTED $57,724 $56,628 -1.9% PERSONNEL: Number of FTE positions 0.45 0.5 POLICE FUND 101 POLICE FUND 101 PROGRAM: Reserves PROGRAM SUMMARY The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, surveillance details, extra patrol and other duties as necessary. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to utilize trained Reserve personnel to respond to medical emergencies and other calls for service. 2. Conduct recruitment processes to achieve 25 members. 3. Continue leadership training for Reserve Command Staff. 4. REVENUES: EXPENDITURES: FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 800 800 0% Salaries /Wages /Benefits 27,565 27,163 -1.5% Materials, Supplies Services 12,683 9,093 -28.3% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $39,448 $35,456 -10.1% PERSONNEL: Number of FTE positions 0.25 0.2 86 PROGRAM: Investigations PROGRAM SUMMARY The Investigations Division of the Police Department conducts follow -up investigations on criminal activity that has occurred in Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue liaison with the County Attorney's office. 2. Provide ongoing training opportunities for the investigation and prosecution techniques regarding identity theft. 3. Continue rotating patrol officers into the investigator position. REVENUES: EXPENDITURES: FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $87,200 $90,400 3.7% Salaries /Wages /Benefits $255,327 $368,007 44.1 Materials, Supplies Services 117,197 74,380 -36.5% Capital Outlay 10,100 0 -100% NET TAX AND GENERAL REVENUE SUPPORTED $295,424 $351,984 19.2% PERSONNEL: Number of FTE positions 2.85 3.8 POLICE FUND 101 PROGRAM: Metro Drug Task Force PROGRAM SUMMARY The NW Metro Drug Task Force is a multi jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance and other covert activities. The Hopkins Police Department provides one investigator to this unit. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to identify and investigate illegal drug activity. REVENUES: EXPENDITURES: FY 2006 FY 2007 Approved Approved Budget Budget $8,500 $4,000 Percent Change -52.9% 4.5% Salaries /Wages /Benefits 85,723 89,591 Materials, Supplies Services 9,114 1,383 -84.8% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $86,337 $86,974 .7% PERSONNEL: Number of FTE positions .95 .95 87 POLICE FUND 101 PROGRAM: Pawn Shop Management PROGRAM SUMMARY The Pawn Shop Management program of the Police Department maintains computerized records of pawnshop transactions as required by City ordinance, check transactions for the presence of reported stolen property and assist other departments in recovering stolen property located in Hopkins pawnshops. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Conduct at least one random inventory and compliance check REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay FY 2006 Approved Budget FY 2007 Approved Percent Budget Change $12,000 $12,000 0% 5,701 5,927 3.9% 10,049 341 .96.6% NET TAX AND GENERAL REVENUE SUPPORTED $3,750 ($5,732) -252.8% PERSONNEL: Number of FTE positions 0.10 0.10 POLICE FUND 101 POLICE FUND 101 PROGRAM: Outreach /Police Services Liaison PROGRAM SUMMARY The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs in Hopkins. These programs include Neighborhood Watch, National Night Out, Crime -free Multi housing, and classroom instruction of Project Alert. In addition, the Police Services Liaison is responsible for the administration of the alarm program, nuisance property program, providing training for liquor and tobacco licensees, review and revision of various ordinances and grant research, application and administration and is the staff liaison to SCIP, Reduce the Use and the Depot. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue working with rental properties to obtain Crime Free Multi Housing certification. 2. Conduct liquor and tobacco compliance checks. 3. Work with the Fire Department in developing CERT (Community Emergency Response Team) program. REVENUES: $10,300 $6,700 -34.9% EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $67,606 $63,477 6.1 PERSONNEL: Number of FTE positions FY 2006 Approved Budget FY 2007 Approved Percent Budget Change 52,863 57,513 8.8% 25,070 12,664 -49.5% 0 0 0% 0.85 0.85 88 PROGRAM: Dispatch PROGRAM SUMMARY The Dispatch program of the Police Department receives, processes and dispatches calls for service for Police, Fire, EMS and Public Works; operates an E -911 Public Safety Answering Point (PSAP) that handles enquiries from the public and other agencies, receives, enters, modifies and queries information from a variety of information systems including computer -aided dispatch (CAD), state, national and local databases, and operates a state of the art 800 MHz digital radio system. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Identify relevant job related training for dispatchers. FY 2006 Approved Budget FY 2007 Approved Percent Budget Change REVENUES: 20,000 20,000 0% EXPENDITURES: Salaries /Wages /Benefits 330,101 378,512 14.7% Materials, Supplies Services 91,866 61,380 -33.1% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $401,967 $419,892 4.5% PERSONNEL: Number of FTE positions 5 6 POLICE FUND 101 PROGRAM: Support Services PROGRAM SUMMARY This division of the Police Department provides the public, police personnel and other law enforcement agencies with in- person, mail and telephone requests for service, documents or records; enter, modify, query and manage a variety of databases; process information and generate state and federal mandated reports, transcribe and process reports and correspondence and maintain records in accordance with state and local guidelines. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Annual records retention purge. 2. Streamline records processing. PERSONNEL: Number of FTE positions EXPENDITURES: Salaries /Wages/Benefits $196,133 $204,373 Materials, Supplies Services Capital Outlay FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 22,369 NET TAX AND GENERAL REVENUE SUPPORTED $218,502 $212,745 3.4 3.4 4.2% 8,372 -62.6% -2.6 89 POLICE FUND 101 PROGRAM: Systems Management PROGRAM SUMMARY The Systems Management program of the Police Department is under the supervision of the city's IT department who oversees the maintenance of all police computer system networks, and state communications interfaces. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007. 1. Work to integrate the police department network with the city's network. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change EXPENDITURES: Materials, Supplies Services $1 14,648 $88,084 -23.2% Capital Outlay 0% NET TAX AND GENERAL REVENUE SUPPORTED $114,648 $88,084 23.2% 0 0 PERSONNEL: Number of FTE positions FIRE BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Revenues Licenses Permits 2,185 4,450 3,285 3,155 4,500 4,500 State Aid 79,403 101,853 101,841 104,879 99,500 99,500 Federal Grant 24,283 7,594 19,861 County Grant 11,840 3,552 4,000 4,000 Administrative Citations 300 600 300 Current Service 10,295 5,250 4,610 11,053 2,600 2,600 Donations 1,279 Miscellaneous 8,746 1,500 2,000 2,000 116,166 141,012 131,397 123,239 112,600 112,900 0.27% Expenditures Salaries, Wages and Benefits Salaries and Wages 218,054 219,252 236,739 275,545 230,883 285,527 23.67% Full time emply 37 fire fighters. Fringe Benefits 131,920 161,381 165,780 172,100 155,716 167,969 7.87% Fire Relief Assoc. contrib. benefits. Materials, Supplies and Services Professional Technical Services 10,767 10,974 10,734 15,096 25,850 24,563 -4.98% Utilities and Maintenance 43,835 31,027 35,064 60,217 40,770 42,726 4.80% Operations 37,945 45,153 74,448 65,899 58,860 63,375 7.67% City Support Services 100,103 77,409 77,796 76,783 76,146 73,248 -3.81% Supplies and Materials 57,007 56,132 68,231 109,476 72,985 75,489 3.43% Capital Outlay Office Furniture and Equipment Equipment 11,700 10,000 46,188 #DIV /0! Total Expenditures 611,331 611,326 714,979 775,116 661,210 732,897 10.84% Indirectly Funded Amount 495,165 470,314 583,582 651,876 548,610 619,997 13.01% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 90 General Fund Revenue and Expenditure Highlights Medical exams for fire fighters. Equip. vehicle repair and maint Training and miscelaneous. Space allocation and Insurance. Office supp., uniforms small equip FIRE FUND 101 PROGRAM: Fire Department PROGRAM SUMMARY The Fire Department includes Emergency Medical Services (EMS), Fire Prevention/Suppression programs. The EMS program supports the Police Department in managing responses to medical emergencies. The Fire Department responds to all life threatening situations and when there are no police officers available to respond. Fire suppression is the response to all fires, hazardous materials, special hazards and special rescue incidents in the city and fire prevention is the enforcement of the fire code, and the review and inspection of new construction. It also provides for public education and files reports with the State Fire Marshall on department activity, property loss or death due to fire emergencies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Work to refine daytime and nighttime medical program. 2. Work with department to refine and train on medical skills. 3. Assess medical and physical well -being of all members. Establish programs to assist member with medical and physical issues. 4. Develop plan to recruit and retain firefighters with emphasis on daytime responders. 5. Develop action steps and timelines to accomplish Long Range Planning Goals for hiring more fulltime employees. 6. Research and apply for grants for fire equipment. 7. Continue with fire inspections through out the city to conform to two -year inspection cycle. 8. Increase public education on the importance of smoke detectors and CO monitors in residents in the City of Hopkins. 9. Increase public information on fire prevention to the citizens of the City of Hopkins. 91 REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $108,600 $108,900 .28% $386,599 $452,659 17.1% 269,321 273,867 1.7% NET TAX AND GENERAL REVENUE SUPPORTED 547,320 617,626 12.8% PERSONNEL: Number of FTE positions Volunteer Firefighters 1.2 36 1.2 38 EMERGENCY PREPAREDNESS FUND 101 PROGRAM: Emergency Preparedness PROGRAM SUMMARY The Emergency Preparedness program provides the community with preparedness, mitigation, response, and recovery from natural and technological disasters including acts of terrorism. The emergency preparedness program is designed to provide training for all employees through partnerships with the Federal Emergency Management Agency, Minnesota Division of Emergency Management, and Hennepin County Emergency Preparedness. Training is accomplished through mock drills and simulated emergency situations, along with specialized training. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007. 1. Do Public education on Disaster Preparedness. 2. Establish Community Response Team (CERT) for the City of Hopkins. 3. Develop a tabletop scenario for all department heads and city council. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $4,000 $4,000 14.29% EXPENDITURES: Salaries /Wages /Benefits 837 Materials, Supplies Services 5,290 5,534 4.6% Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED $1,290 $2,371 83.8% PERSONNEL: Number of FTE positions 92 Revenues Licenses and Permits Intergovernmental Charges for Services Other Miscellaneous Sales of Fixed Assets Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Buildings Improvements Office Furniture and Equipment Equipment Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount Actual 2003 Actual 2004 6,290 11,370 116,208 118,283 9,571 3,495 111 1,888 9,642 1,051,648 1,029,856 361,436 319,070 24,326 105,463 339,051 347,088 10,618 (4,877) 122,593 123,144 193,875 197,177 PUBLIC WORKS BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET Actual 2005 11,615 115,116 170,543 2,905 216 1,023,564 340,105 170,574 366,222 7,272 136,730 258,132 93 YTD Actual 2006 1,054,093 347,378 120,903 384,652 24,703 146,549 265,907 849 32,975 18,731 27,952 1,499,918 1,499,190 1,491,477 1,704,288 10,340 5,500 5,100 -7.27% 111,448 116,000 115,000 -0.86% 1,843 4,650 4,650 600 450 500 11.11% 2,104,394 2,149,896 2,321,330 2,372,137 (472,296) (506,028) (529,457) (543,619) 1,632,098 1,643,868 1,791,873 1,828,518 Budget Budget Percent 2006 2007 Change 1,057,091 1,090,960 347,633 368,881 166,850 202,150 21.16% 380,850 382,000 0.30% 28,300 29,710 4.98% 146,028 136,629 -6.44% 240,700 257,275 6.89% 5,000 100.00% 30,600 18,000 41.18% 2,403,052 2,485,605 (522,254) (532,000) 1,880,798 1,953,605 1,754,198 1,828,355 4.23% The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks and Tree Service. General Fund Revenue and Expenditure Highlights 3.20% 20 fulll time employees 6.11% Striping, sidewalks, seal coating Equip maint., tele, heat elec Print, advertise, training and misc. Insurance, space occupancy Office supplies small equipment Skid loader 3.44% 1.87% admin., street and equip charges 3.87% PUBLIC WORKS FUND 101 PROGRAM: Buildings PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The public works buildings budget covers the entire public works complex. The buildings and equipment are maintained by in house maintenance personnel and the custodial duties by a contract cleaner. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Maintain PW building to assure a safe and comfortable environment for all City employees at the lowest cost to the taxpayer. EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures FY 2006 Approved Budget $29,029 75,244 0 (67,250) (69,000) 2.60% NET TAX AND GENERAL REVENUE SUPPORTED $37,023 $38,595 PERSONNEL: Number of FTE positions 0.4 0.4 FY 2007 Approved Percent Budget Change $30,894 6.4% 76,701 1.9% 0 0% 4.2% 94 PUBLIC WORKS FUND 101 PROGRAM: Equipment Services PROGRAM SUMMARY The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue aggressive maintenance and repair of all city equipment. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 200 250 25% 162,903 174,186 6.9% 15,612 16,098 3.1% 3,600 0 -100% Reimbursed Expenditures (140,810) (141,000) 0% NET TAX AND GENERAL REVENUE SUPPORTED $41,105 $49,034 19.3% 2.35 2.35 PUBLIC WORKS FUND 101 PROGRAM: Administration PROGRAM SUMMARY The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks and Forestry; Street and Traffic Services; Water and Sewer Utilities; Refuse Collection; Recycling and Facility Management. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Complete Shady Oak Road improvement planning and coordination with affected commercial businesses and residential areas. 2. Continue to analyze and respond to opportunities to improve service quality and efficiency. 3. Respond to increased facility maintenance needs and protect City investment in new facilities. 4. Implement new "Call Center" customer service /complaint tracking Program. FY 2006 FY 2007 Approved Approved Budget Budget EXPENDITURES: Salaries /Wages /Benefits $142,073 $149,253 Materials, Supplies Services 18,645 17,686 Capital Outlay Reimbursed Expenditures (145,610) (147,000) NET TAX AND GENERAL REVENUE SUPPORTED $15,108 $19,939 PERSONNEL: Number of FTE positions 1.4 1.39 Percent Change 5.1% -5.1% 0 .9% 31.9% 95 PUBLIC WORKS FUND 101 PROGRAM: Engineering PROGRAM SUMMARY The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as- builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to consultants involved with construction projects. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Continue to develop utility maps in digitized format and apply to GIS program. 2. Continue field survey and inventory of utility system for GIS application. 3. Complete utilities systems comprehensive master plan and rate study 4. Oversee implementation of the City's Capital Improvement Plan. FY 2006 Approved Budget FY 2007 Approved Percent Budget Change REVENUES: 5,300 5,300 0% EXPENDITURES: Salaries /Wages /Benefits 148,362 152,966 3.1% Materials, Supplies Services Capital Outlay Reimbursed Expenditures 44,138 36.258 -17.8% 0% (60,000) (65,000) 8.3% NET TAX AND GENERAL REVENUE SUPPORTED $127,200 $118,924 -6.5% PERSONNEL: Number of FTE positions 1.77 1.77 PUBLIC WORKS FUND 101 PROGRAM: Streets and Alleys PROGRAM SUMMARY The Streets and Alleys program of the Public Works Department provides maintenance of 55 miles of streets, 30 miles of alleys and 10 parking lots (including parking ramp) within the City for convenient day -to -day use. Also provides street lighting, traffic signs and signals, and sidewalk repair. Maintenance includes activities such as sweeping, patching, seal coating and curb repair. Major maintenance is scheduled on a 6 year, maintenance district rotation basis. Routine mill /patching/paving is accomplished throughout the City during the summer season. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Street maintenance utilizing pavement management support information that includes prep seal coat areas and contractual crack sealing. 2. Spring sweeping as weather permits, Mainstreet sweeping every three weeks, residential sweeping (spring, summer and once in the fall). 3. Continued maintenance of storm water drainage systems. 4. Inspect and repair all defective sidewalks in district 5. Preventative patching, repairs to bituminous roadways. 6. Maintain sign and signal change outs, inventory signs, upgrade traffic controls and signals as required. 7. Mall maintenance including flags, refuse, decorations and banners, and streetlight painting. 96 REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2006 Approved Approved Percent Budget Budget Change $118,700 $117,300 -1.2% 350,436 362,195 3.4% 516,765 528,054 2.2% 15,000 16,000 6.7% (108,584) (110,000) 1.3% $654,917 $678,949 3.7% 4.74 4.74 PUBLIC WORKS FUND 101 PROGRAM: Snow Ice Removal PROGRAM SUMMARY The Snow Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking lots (including parking ramp) and economic development properties within the city for convenient day -to -day use, and to provide safe travel and parking conditions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Complete plowing/sanding operations of all city streets, alleys, parking lots and parking ramp with 10 hours. 2. Complete snow removal operations in downtown areas /ramp /parking lots in efficient manner to meet parking/traffic flow demands. 3. Secure permanent snow dumpsites to meet our needs. 4. Utilize snow emergency policy to maximize safety and snow removal efforts, while minimizing resident conflicts. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: 0 0 0% EXPENDITURES: Salaries /Wages /Benefits 83,964 82,764 -1.4% Materials, Supplies Services 44,086 58,297 32.2% Capital Outlay 2,000 0 -100% NET TAX AND GENERAL REVENUE SUPPORTED $130,050 $141,061 8.5% PERSONNEL: Number of FTE positions 1.01 1.01 97 PUBLIC WORKS FUND 101 PROGRAM: Park Maintenance Improvements PROGRAM SITPVIMARY The Parks program of the Public Works Department provides for the maintenance of developed parks and grounds adjacent to public buildings and right -of -ways, including, seeding, fertilizing and mowing of grass, maintenance of all athletic fields and general playgrounds and maintenance of Shady Oak Beach. Maintenance of Co. Rd 3 median flowers and irrigation is provided. Maintenance of picnic facilities and trails, trash and rubbish removal from parks is also included. Open skating and hockey areas are included. Open skating and hockey areas are provided from December through February for outdoor recreational purposes. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue grounds maintenance of all parks including Shady Oak Beach, City Hall, 4 well houses, Public Works garage and all other City owned right -of -way. 2. Provide open skating and hockey at the following parks: Valley, Harley Hopkins, Oakes, Central, Interlachen, open skating only at Hilltop, and Burnes. 3. Expand Excelsior Boulevard landscaping; begin maintenance activities (mowing, irrigation, snow removal) utilizing the Sentence to Serve (STS) program. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $2,300 $2,300 0% EXPENDITURES: Salaries /Wages /Benefits $366,949 $382,940 4.4% Materials, Supplies 162,657 192,577 18.4% Capital Outlay 13,000 0 -100% NET TAX AND REVENUE SUPPORTED $540,306 $573,217 6.1 "A) PERSONNEL: Number of FTE positions 5.07 5.07 98 PUBLIC WORKS FUND 101 PROGRAM: Tree Maintenance Forestry PROGRAM SUMMARY The Tree Service program of the Public Works Department provides for the maintenance of all trees. Through the utilization of aboriculture practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2007 3. Remove all diseased, dead, dying trees on public property. 4. Provide for prompt customer service on requests for trimming and tree consultation. FY 2006 FY 2007 Proposed Approved Percent Budget Budget Change REVENUES: $100 $100 0% EXPENDITURES: Salaries /Wages /Benefits $121,008 $124,644 3.0% Materials, Supplies 85,581 82,093 -4.1% Capital Outlay 2,000 2,000 0% NET TAX AND REVENUE SUPPORTED $208,489 $208,637 .1% PERSONNEL: Number of FTE positions 1.86 1.86 99 SELECTED WORK INDICATORS Actual 2003 Actual 2004 Actual 2005 Actual 2006 Budget 2007 Number of diseased trees removed on private property 73 274 146 155 140 Number of trees removed on public property 93 182 137 190 150 Number of trees planted 41 100 74 50 50 Number of trees trimmed 150 50 50 100 100 Number of irrigated acres mowed on a 20 -week growing season 850 900 950 950 950 Number of non irrigated acres mowed on a 20- week growing season 1,890 1,900 2,000 2,000 2,000 Number of acres fertilized a year 180 180 180 180 180 Number of acres sprayed for broad leaf weed control 240 250 100 250 250 Number of acres over seeded and aerated 130 130 25 130 130 Number of times temporary rinks are installed /removed 4 2 2 2 2 Number of times 11 ice rinks are resurfaced /cleared of snow 78 66 55 77 77 Number of times 7 primary ball fields are prepared for play 100 100 100 100 100 Number of times secondary ball fields are prepared for play 30 30 30 30 30 Number of times soccer /football fields are prepared for play 56 56 40 40 30 Number of times playground equipment is checked for safety and repair 12 12 0 12 12 Number of times tennis courts are checked and repaired 4 4 4 4 4 Number of times swimming area is maintained, including set up and winterization 7 7 7 7 7 Number of times park garbage is picked up (all parks 1 time) 40 40 40 40 40 Number of times sidewalks cleared of snow and ice 16 16 12 16 16 Number of times trails are maintained 4 4 4 4 4 Number of times park buildings are cleaned and /or repaired 18 16 16 16 16 Number of weed notices issued 30 120 76 63 75 PUBLIC WORKS FUND 101 PROGRAM: Tree Maintenance Forestry PROGRAM SUMMARY The Tree Service program of the Public Works Department provides for the maintenance of all trees. Through the utilization of aboriculture practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2007 3. Remove all diseased, dead, dying trees on public property. 4. Provide for prompt customer service on requests for trimming and tree consultation. FY 2006 FY 2007 Proposed Approved Percent Budget Budget Change REVENUES: $100 $100 0% EXPENDITURES: Salaries /Wages /Benefits $121,008 $124,644 3.0% Materials, Supplies 85,581 82,093 -4.1% Capital Outlay 2,000 2,000 0% NET TAX AND REVENUE SUPPORTED $208,489 $208,637 .1% PERSONNEL: Number of FTE positions 1.86 1.86 99 CITY OF HOPKINS 2007 BUDGET RECREATION BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Revenues Miscellaneous 5,680 100 25 Transfer In 37,492 Expenditures Salaries, Wages and Benefits Salaries and Wages 56,531 35,241 37,441 35,717 53,879 55,555 3.11% Part-time employees Fringe Benefits 5,816 3,310 4,179 4,041 6,126 6,276 2.45% Materials, Supplies and Services Operations 155,139 147,980 150,716 151,296 152,850 157,339 2.94% Reimb. to Minnetonka Recreation. Supplies and Materials 229 3,385 266 2,700 1,400 48.15% Capital Outlay Improvements Other than Bldg 10,000 7,000 Transfer Out Total Expenditures 217,714 189,916 202,601 198,054 215,555 220,570 2.33% Indirectly Funded Amount 212,034 189,816 202,576 198,054 215,555 220,570 2.33% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 100 General Fund Revenue and Expenditure Highlights RECREATION FUND 101 PROGRAM: Playgrounds PROGRAM SUMMARY The popular summer playground program is provided to children at 11 locations throughout the both the city of Hopkins and Minnetonka. Activities include outdoor games, arts and crafts, a tiny tots program, and a summer adventure club. The summer concludes with a carnival attended by children from all the playground sites. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. To develop, promote and provide quality recreational opportunities in anticipation of and in response to the needs and interests of the Hopkins- Minnetonka community. REVENUES: NET TAX AND GENERAL REVENUE SUPPORTED $31,000 FY 2006 FY 2007 Approved Approved Budget Budget EXPENDITURES: Salaries/Wages /Benefits $31,000 $31,826 PERSONNEL: Number of Part-time positions 22 22 Percent Change 2.66% $31,826 2.66% 101 RECREATION FUND 101 PROGRAM: Ice Rink Program PROGRAM SUMMARY Supervised outdoor ice rinks are provided at 14 locations throughout Hopkins and Minnetonka. Each site is staffed with rink attendants from mid December thru mid February dependant on weather conditions. Ice rinks are available for general skating, hockey and broomball. Approximately 30 staff are hired and trained to supervise the outdoor ice rink program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. To provide quality customer service and facilities to ice rink users. FY 2006 Approved Budget FY 2007 Approved Percent Budget Change REVENUES: EXPENDITURES: Salaries /Wages /Benefits $13,320 $13,650 2.48% NET TAX AND GENERAL REVENUE SUPPORTED $13,320 $13,650 2.48% PERSONNEL: Number of Part-time positions 30 30 RECREATION FUND 101 RECREATION FUND 101 PROGRAM: Park Service PROGRAM SUMMARY The Recreation Department hires and trains attendants to supervise park services at both Burnes and Valley Parks. Attendants manage picnic reservations, maintain restroom facilities, provide recreational equipment and keep overall site clean for park users. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. To provide quality customer service and facilities to park users. REVENUES: EXPENDITURES: Salaries /Wages/Benefits 11,165 NET TAX AND GENERAL REVENUE SUPPORTED $11,165 PERSONNEL: Number of Part-time positions 4 FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 11,600 3.90% $11,600 3.90% 4 102 PROGRAM: Joint Recreation PROGRAM SUMMARY Programs for all ages are provided through the Joint Recreation division. Youth classes are offered in over 15 areas of interest including tennis, golf, swimming, ball skills, and arts crafts. Youth sports leagues are offered in basketball and soccer. Adult classes are offered in several areas of interest, and team sports are offered in soccer, softball, basketball, volleyball, hockey, broomball and football. In addition, the joint recreation division oversees the operation of Shady Oak Beach, attended by over 40,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. To develop, promote and provide quality recreational opportunities in anticipation of and in response to the needs and interest of the Hopkins Minnetonka community. REVENUES: FY 2006 Approved Budget FY 2007 Approved Percent Budget Change EXPENDITURES: Materials, Supplies Services 152,500 156,000 2.30% NET TAX AND GENERAL REVENUE SUPPORTED $152,500 $156,000 2.30% PERSONNEL: Number of Part-time positions 90 90 SKATE PARK FUND 101 PROGRAM: Overpass Skate Park PROGRAM SUMMARY The Skate Park program provides skate boarders, bikers, and inline skate athletes 10 years of age or older, with a safe, fun and challenging place to improve their skills. The skate park is open up to seven days a week during the summer months of the year. When school is in session the park is open on weekends as weather permits. The Skate Park is one of only a few tier II aggressive skate parks in the state of Minnesota, so the Skate Park enhances City of Hopkins marketing by attracting a regional population in addition to serving the residents of Hopkins.. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 To operate the park under a contractual operating agreement. 2. To operate the park with favorable fees for resident and community partners. 3. To increase the number of Hopkins resident users and partner community (Minnetonka and St. Louis Park) resident users. REVENUES: EXPENDITURES: Salaries /Wages /Benefits 4,520 4,755 5.19% Materials, Supplies Services NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 0 0 0% 3,050 2,739 -10.20% 7,570 $7,494 -1.01% 0.05 0.05 103 Revenues Charges for Services Contributions Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Buildings Structures Other Improvements Office Furniture and Equipment Computers Total Expenditures Indirectly Funded Amount Actual 2003 78,168 58,921 56,412 6,424 5,722 78,168 65,345 62,134 140,760 42,319 46,511 26,976 10,935 1,482 18,158 6,265 293,406 215,238 ACTIVITY CENTER BUDGET Revenues and Expenditures Actual 2004 143,740 40,441 31,251 24,278 6,977 7,204 13,901 CITY OF HOPKINS 2007 BUDGET Actual 2005 139,327 40,945 29,229 37,230 11,158 7,662 16,740 104 YTD Actual 2006 148,141 42,917 22,331 34,637 7,857 8,455 16,818 Budget 2006 141,876 38,735 25,250 36,240 18,415 6,405 17,650 2,700 1,150 8,000 270,492 282,291 281,156 293,721 205,147 220,157 223,877 225,521 The Activity Center Dept ttnent is made up of two programs. They are Community Use and Maintenance. Due to budget constraints, the center is closed on Fridays unless there is a special event. Budget 2007 Percent Change 52,949 62,200 66,000 6.11% 4,330 6,000 6,000 57,279 68,200 72,000 5.57% 148,333 4.55% Six part-time employees 44,626 15.21% 25,750 38,500 13,950 7,123 18,500 1.98% 6.24% -24.25% 11.21% 4.82% 8,840 305,622 4.05% 233,622 3.59% General Fund Revenue and Expenditure Highlights Events /trips, instructors cleaning Equip maint., tele., heat electricity Post, print, adver., training and misc. Insurance, equipment Office supplies and small equipment padded chairs for Raspberry room and phone tree messaging system ACTIVITY CENTER FUND 101 PROGRAM: Hopkins Activity Center PROGRAM SUMMARY The Activity Center Community Use program of the Public Works Department provides a facility for residents to use for active or passive activities. This program coordinates all the activities that take place at the Activity Center. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Market the Hopkins Activity Center to residents. 2. Market current special interest groups implemented by the Hopkins Activity Center 3. Increase partnerships with businesses, civic organizations, school district and faith community. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $68,200 $72,000 5.57% EXPENDITURES: Salaries /Wages /Benefits 166,469 178,189 7.03% Materials, Supplies Services 63,734 60,737 3.99% Capital Outlay 8,000 8,840 -4.70% NET TAX AND GENERAL REVENUE SUPPORTED $170,003 $175,766 3.38% PERSONNEL: Number of FTE positions 3.1 3.1 105 ACTIVITY CENTER FUND 101 PROGRAM: Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the Maintenance and repair of all City Buildings. The Activity Center maintenance Budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this Building. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to maintain the facility and equipment. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change 14,142 14,770 4.44% 40,226 43,086 7.11% 1,150 0 0% 855,518 857,856 4.21% .2 .2 Revenues Permits and Licenses Charges for Services Miscellaneous Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Total Expenditures Reimbursed Expenditures Net Total Expenditures Indirectly Funded Amount Actual Actual 2003 2004 7,971 24,253 71,848 70,929 17,737 17,403 724 14,830 776 202 3,553 6,057 2,893 2,974 1,613 1,675 99,144 114,071 (18,778) 99,144 95,293 91,174 71,040 CITY OF HOPKINS 2007 BUDGET PLANNING BUDGET Revenues and Expenditures 1,978 2,055 5,993 22,198 Actual 2005 1,448 1,585 3,033 71,541 24,788 171 111 3,985 2,963 1,507 105,066 (18,778) 86,288 83,255 106 YTD Actual 2006 1,455 6,382 7,837 73,856 22,211 9,748 270 5,848 3,069 5,035 120,037 (18,780) 101,257 Budget 2006 1,600 5,500 7,100 72,767 17,505 3,200 775 11,470 3,122 5,600 114,439 (18,780) 95,659 93,420 88,559 Budget Percent 2007 Change 1,600 5,300 -3.64% #DIV /0! 6,900 -2.82% 76,491 5.12% 22,427 28.12% 23,500 634.38% 600 22.58% 9,745 15.04% 1,201 61.53% 2,900 -48.21% #DIV /0! 136,864 19.60% (19,000) 1.17% 117,864 23.21% 110,964 25.30% General Fund Revenue and Expenditure Highlights One full time employee Planning consulting and legal advise. Vehicle maintenance and telephone Post., print, advertise, train, misc. Space and occupancy, insurance Office supplies and small equipment PLANNING FUND 101 PROGRAM: Zoning Activities Enforcement PROGRAM SUMMARY The Zoning Activities Enforcement program of the Planning Community Department provides administration and enforcement of locally approved Zoning Ordinance and Comprehensive Plan. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Update Comprehensive Plan. 2. Implement Shady Oak Road Redevelopment Study. REVENUES: EXPENDITURES: Salaries /Wages/Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET TAX AND GENERAL REVENUE SUPPORTED PERSONNEL: Number of FTE positions FY 2006 FY 2006 Approved Approved Percent Budget Budget Change $5,500 $5,300 -3.6% $56,884 $62,782 10.4% 20,804 16,144 22.4% 0% (18,780) (19,000) 1.7% $53,408 $54,626 2.3% 0.75 0.75 107 PLANNING FUND 101 PROGRAM: Sign and Fence Permits PROGRAM SUMMARY The Sign and Fence Permits program of the Planning Economic Development Department provides administration and inspection of signs and fences. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Process permit requests timely and expedient manner REVENUES: FY 2006 FY 2006 Approved Approved Percent Budget Budget Change $1,600 $1,600 0% EXPENDITURES: Salaries /Wages /Benefits $7,828 $8,679 10.9% Materials, Supplies Services 1,460 514 -64.7% Capital Outlay -1 0% NET TAX AND GENERAL REVENUE SUPPORTED $7,688 $7,593 -1.2% PERSONNEL: Number of FTE positions 0.10 0.10 PLANNING COMMUNITY DEVELOPMENT FUND 101 PROGRAM: Miscellaneous Planning PROGRAM SUMMARY The Miscellaneous Planning program of the Planning Community Department prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Comprehensive Plan. 2. Provide staff assistance to Planning Commission. FY 2006 FY 20067 Approved Approved Percent Budget Budget Change EXPENDITURES: Salaries /Wages /Benefits $25,560 $27,457 7.4 Materials, Supplies Services 1,903 21,288 1018% NET TAX AND GENERAL REVENUE SUPPORTED $27,463 $48,745 77.5 PERSONNEL: Number of FTE positions 0.35 0.35 North Annex Building 9300 Excelsior Boulevard tgak CITY OF HOPKINS 2007 BUDGET STATE CHEMICAL ASSESSMENT BUDGET Revenues and Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Revenues Intergovernmental 59,484 33,899 104,114 26,469 45,000 45,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 32,089 18,905 29,671 20,768 22,961 23,167 0.90% Part -time fire fighters Materials, Supplies and Services Professional Technical Services 5 2,761 255 100 100 Weekend cleaning service Utilities and Maintenance 2,693 2,293 2,177 533 2,650 2,650 Equip maint., telephone, heat elec. Operations 11,748 1,691 3,943 5,225 6,500 6,180 -4.92% Training and miscelaneous City Support Services 3,605 3,486 3,551 1,062 3,632 3,803 4.70% Insurance audit Supplies and Materials 6,625 14,068 34,266 8,143 6,157 6,100 -0.93% Office supplies and small equipment Capital Outlay Other Equipment 40,027 3,000 3,000 Total Expenditures 56,760 40,449 116,396 35,986 45,000 45,000 0.00% Excess (deficiency) of revenue over expenditures 2,724 (6,550) (12,282) (9,517) (0) The State Chemical Assessment is supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. 109 Special Revenue Fund 203 Revenue and Expenditure Highlights CHEMICAL ASSESSMENT TEAM FUND 203 PROGRAM: State Chemical Assessment Team PROGRAM SUMMARY The State Chemical Assessment Team program provides emergency response for assessment of chemical hazards for the State of Minnesota and maintenance of state owned equipment for emergency response and training of personnel. Responding as requested by the State Duty Officer to the counties of Hennepin, Scott, Carver, McLeod and Renville. The State of Minnesota will reimburse the City for up to $45,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. To bring all Team Members from a Technician Level to a the highest level attainable, Specialist. 2. To heighten Team awareness in CBRNE (Chemical, Biological, Radiological, Nuclear, Explosives) and WMD (Weapons of Mass Destruction). FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $45,000 $45,000 0% EXPENDITURES: Salaries /Wages/Benefits $22,961 $23,167 .9% Materials, Supplies Services 19,039 18,833 -1.1% Capital Outlay 3,000 3,000 0% NET SOURCE (USE) OF FUND BALANCE PERSONNEL: Number of FTE positions 110 Revenues Property Taxes Intergovernmental Interest earnings Charges for services Miscellaneous Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Land Acquisition Other Improvements Equipment Allocation Total Expenditures Reimbursed Expenditures Net Total Expenditures Operating Transfer In (Out) Excess (deficiency) of Revenues over Expenditures CITY OF HOPKINS 2007 BUDGET ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected YTD Actual Actual Actual Actual Budget Budget 2003 2004 2005 2006 2006 2007 101,437 814 9,912 9,239 14,000 15,000 424,969 166,250 49,342 21,604 15,227 38,279 20,000 20,000 12,056 10,511 40,579 15,000 45,000 45,643 19,615 5,000 15,000 5,000 633,446 218,794 70,718 62,518 94,000 40,000 115,435 107,412 103,661 60,044 109,198 113,382 32,035 29,611 35,498 15,779 29,037 29,316 484,763 195,262 2,745 6,824 42,950 46,150 154 166 312 194 450 500 6,872 3,059 3,018 46,664 10,625 7,150 49,206 36,410 36,456 12,304 36,557 33,426 2,313 1,346 1,651 593 3,800 2,700 30,000 #DIV /0! #DIV /0! 1,623 792 795 619 891 769 13.69% 692,402 374,058 184,136 143,021 233,508 263,393 12.80% (67,846) (37,500) (37,500) (37,500) (37,500) (37,500) 624,557 336,558 146,636 105,521 196,008 225,893 15.25% (61,000) (61,000) (62,855) (61,000) (61,000) (461,000) 655.74% (52,111) (178,764) (138,773) (104,003) (163,008) (646,893) 296.85 The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 111 Percent Change 62.36% 47.75% 100.00% #DIV /0! 7.45% 11.11% -32.71% -8.56% 28.95% Special Revenue Fund 204 Revenue and Expenditure Highlights HRA levy Livable Community grant no projects for 2005 Interest earnings on cash balance 3.83% Two and a half full time employees 0.96% Development consulting and legal Equipment maintenance and telph. Training and miscelaneous Admin. fee, occupancy and ins. Office supplies and small equip Computer equip replacement Cost to TIF districts for direct time. Transfer to Art Center ECONOMIC AND COMMUNITY DEVELOPMENT FUND 204 PROGRAM: Project Development and Coordination PROGRAM SUMMARY Undertake miscellaneous development activities not directly funded by specific project district budgets. Administer the Economic Development funds. Meet with developers, property owners and business tenants to review possible redevelopment/development activities. Explore alternative methods of financing. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Monitor income /expenditure of Economic Development fund. 2. Prepare program budget. 3. Facilitate redevelopment projects as directed by the City Council. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Operating Transfer Out NET USE (SOURCE) OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 Approved Budget FY 2007 Approved Percent Budget Change $94,000 $35,000 -62.3% $57,159 $58,399 2.2% 60,648 45,335 -25.2% 30,000 100% 61,000 461,000 655.7% $84,807 $559,734 560% .70 .70 112 ECONOMIC AND COMMUNITY DEVELOPMENT FUND 204 PROGRAM: Tax Increment Financing Program PROGRAM SUMMARY Undertake miscellaneous development activities funded through tax increment districts. Administer all districts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay Reimbursed Expenditures NET USE OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 Approved Budget FY 2007 Approved Percent Budget Change $45,886 $47,702 3.9% 22,213 17,127 -22.9% (37,500) (37,500) 0% $30,599 $27,329 10.7% .50 .50 ECONOMIC COMMUNITY DEVELOPMENT FUND 204 PROGRAM: Community Development Activity PROGRAM SUMMARY The Community Development Activity program of the Economic Development Department prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. Administration of overall economic development process. Preparation and administration of annual CDBG program with Hennepin County. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1 Commencement Council- approved goals and objectives. 2. Continue liaison role for City between both HBCA and Twin West Chamber. 3. Work with Marketing Task Force to develop and implement community marketing plan. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $0 $5,000 EXPENDITURES: Salaries /Wages /Benefits $35,190 $36,597 4.0% Materials, Supplies Services 12,412 28,233 127.5% Capital Outlay Reimbursed Expenditures NET USE OF FUND BALANCE $47,602 $59,830 25.7% PERSONNEL: Numbcr of FTE positions 0.40 0.40 113 'xfritt rw ■aa■sr^+i...,a I. D'gt. t 'l IR)PKINS MAIN S1 REM RISIDLNIIAL CAMPUS Total Revenues Expenditures Materials, Supplies and Services Professional Technical Services Operations Supplies and Materials Capital Outlay Office Furniture and Equipment Total Expenditures Net Revenues CITY OF HOPKINS 2007 BUDGET REAL ESTATE PURCHASES AND SALES BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Revenues Miscellaneous 3,700 3,700 3,700 3,700 3,700 3,700 Interest 1,569 2,039 2,505 2,114 2,100 2,100 5,269 5,739 6,205 5,814 5,800 5,800 5,269 S 5,739 6,205 5,814 5,800 5,800 The Rreal Estate Purchases and Sales Fund records acquisitions and dsposition of property with the proceeds used to improve city buildings. 114 Special Revenue Fund 205 Revenue and Expenditure Highlights Right of way fees Interest earnings REAL ESTATE PURCHASES AND SALES FUND FUND 205 PROGRAM: Real Estate Purchases Sales PROGRAM SUMMARY Undertake miscellaneous real estate activities for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $5,800 $5,800 0% EXPENDITURES: Salaries /Wages /Benefits 0% Materials, Supplies Services 0% Capital Outlay 0% NET SOURCE OF FUND BALANCE $5,800 $5,800 0% PERSONNEL: Number of FTE positions 0 0 115 1 REAL ESTATE Revenues State Grant Paratransit Fares Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Transfer In from general funds Indirectly Funded Amount PARA TRANSIT BUDGET Revenues and Expenditures 95,261 18,498 113,759 CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 93,990 103,114 48,034 96,067 83,870 12.70% 14,184 13,560 9,620 24,000 12,000 50.00% 108,174 116,674 57,654 120,067 95,870 20.15% 11,083 12,551 12,626 7,041 13,006 13,466 2,533 2,054 3,107 1,807 2,931 3,996 Materials, Supplies and Services Professional Technical Services 107,027 107,459 98,493 46,162 112,475 96,824 13.92% Utilites Maintenance 557 46 Operations 21 101 19 19 220 220 City Support Services 4,137 288 311 224 385 2,417 527.47% Total Expenditures 125,358 122,500 114,556 55,253 129,017 116,923 -9.37% 1,321 2,118 2,401 0 (0) The Para Transit fund accounts for the receipt of grants and rider fees and the expenditures for the Hop -A -Ride program. 116 Special Revenue Fund 212 Revenue and Expenditure Highlights Grant from Met Council 3.54% One quarter full time employees 36.34% Transport. provider, audit legal Phones Postage, advertising and training. Insurance, space admin fees (11,600) (15,648) (8,950) (21,053) 135.23% Transfer in from the general fund. PARATRANSIT FUND 212 PROGRAM: Hop -A -Ride PROGRAM SUMMARY Provide paratransit services for residents of Hopkins. This service is a shared ride service within the City of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Provide service within budget constraints. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $129,017 $116,923 -9.4% EXPENDITURES: Salaries /Wages /Benefits $15,937 $17,462 9.6% Materials, Supplies Services 113,080 99,461 -12.0% Capital Outlay NET SOURCE (USE) OF FUND BALANCE 0 0 PERSONNEL: Number of FTE positions .2 .2 117 HOP -A -RIDE CITY OF HOPKINS R evenues Intergovernmental Assessment Fees Interest Earnings Miscellaneous Bond Proceeds Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Improvements Office Furniture and Equipment Equipment Allocation Total Expenditures Excess (deficiency) of Revenues over Expenditures HOUSING REHABILITATION BUDGET Revenues and Expenditures Actual Actual 2003 2004 5,775 5,775 24,722 22,774 16,224 210 84 113 30,707 28,633 44,939 11,745 4,773 29 1,084 17,846 1,207 38,022 812 120,456 (89,749) 38,543 11,638 5,096 5 513 18,160 1,370 75,720 (47,087) CITY OF HOPKINS 2007 BUDGET Actual 2005 16,337 45,038 11,682 2,787 1,294 18,168 892 80,257 118 (63,920) YTD Actual 2005 28,000 100 28,100 46,563 12,196 3,920 5,401 18,234 1,450 396 396 445 445 402 -9.66% Computer and equipment alloc. 88,209 (60,109) Budget 2005 28,000 100 28,100 46,563 12,196 3,920 6,340 18,262 1,450 89,176 (61,076) The Housing Rehabilition fund accounts for funds received from past grants. The funds are used for administration of the housing rehabilitation programs. Budget 2006 28,000 100 28,100 48,231 12,664 5,040 14,686 1,400 4,080 4.08% #DIV /0! 20.50% 19.58% -3.45% Percent Change 86,503 -3.00% (58,403) 4.38 /o Special Revenue Fund 213 Revenue and Expenditure Highlights 3.58% One three quarter time 3.84% Legal, Audit, and consulting Telephone Post., print, adver., train., misc. Space occup., admin., insur. Office supplies and small equip. Patio Homes and Valley View HOUSING REHAB FUND 213 PROGRAM: Special Projects PROGRAM SUMMARY Promotion and development of housing programs and activities for City property owners and residents. Staff support of housing programs such as 1s Time Home Buyer Mortgage Program, Image Awards, Housing Improvement Areas and Livable Communities Program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007: 1. Continue promotion and support of various housing programs. 2. Investigate funding for East End Redevelopment including Livable Communities Demonstration Account. REVENUES: EXPENDITURES: Salaries /Wages/Benefits Materials, Supplies Services Capital Outlay NET USE OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $25,863 15,175 $26,818 12,508 $41,038 $39,326 .3 .3 -4.2% 119 HOUSING REHAB FUND 213 PROGRAM: Committee Liaison PROGRAM SUMMARY Coordinate bi- monthly meetings of the Hopkins Apartment Managers Association. Serve as the City representative on the Hopkins Family Resource Center Board of Directors and other community committees and collaborative efforts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007: 1. Continue to promote City of Hopkins vision statement goals and objectives through collaborative efforts with outside groups /agencies. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay NET USE OF FUND BALANCE PERSONNEL: N umber of FTE positions FY 2006 FY 2007 Approved Approved Budget Budget Percent Change 0% $12,343 $12,786 3.6% 8,275 6,405 -22.6% 0% $20.518 $19,091 -6.9% $100 $100 .15 .15 HOUSING REHAB FUND 213 PROGRAM: Housing Program PROGRAM SUMMARY Provide referrals to Housing Rehabilitation Loan/Grant programs. Monitor opportunities for new funding sources. Provide ongoing loan servicing support. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007: 1. Investigate new funding options for housing improvement programs FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $28,000 $28,000 0% EXPENDITURES: Salaries /Wages /Benefits 20,553 21,291 3.6% Materials, Supplies Services 6,967 6,695 3.9% Capital Outlay 135 135 Reimb Expenditures NET SOURCE OF FUND BALANCE $480 $14 1.7% PI ;RSONNEL: Number of FTE positions .25 .25 120 Revenues Court Fines Leased Parking Interest Earned Federal Grant Current Services Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Other Improvements Equipment Allocation Total Expenditures Excess (deficiency) of Revenues over Expenditures PARKING BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget 2003 2004 2005 2006 2006 47,920 40,888 28,669 11,786 40,000 51,900 48,037 54,262 54,620 54,000 7,205 7,026 5,005 12,578 7,500 470 93 107,588 95,951 87,936 78,984 101,500 60,160 55,761 58,503 26,134 56,656 10,102 7,850 9,064 4,352 7,814 753 4,645 728 1,238 6,775 15,291 30,677 20,416 9,125 17,000 410 25 1,750 15,772 15,624 16,134 8,025 15,812 5,995 4,716 4,603 246 8,150 15,000 2,406 1,344 1,344 826 1,492 110,478 121,028 110,817 49,946 130,449 (2,890) (25,077) (22,881) 29,038 (28,949) 121 Budget 2007 40,000 54,000 7,500 101,500 39,268 6,309 5,850 19,250 1,000 16,168 6,950 11,600 1,609 108,004 (6,504) Percent Change 13.65% 13.24% 42.86% 2.25% 14.72% 22.67% 7.84% 17.21% 77.53% Special Revenue Fund 214 Revenue and Expenditure Highlights 30.69% One and three- quarter employees 19.26% Legal, Audit, and other consulting Bldg equip. maint., electricity Print new brochures in 2004. Space and occup, admin. fee, insur. Supplies, Equip, signage, lighting. caulking, paint structural repair Computer and equipment allocation PARKING FUND FUND 214 PARKING FUND FUND 214 PROGRAM: Parking Enforcement PROGRAM SUMMARY Manage and enforce parking rules and regulations. Ensure that parking is available for customers and parking rules are followed. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Monitor the effects of current parking enforcement efforts and recommend changes as needed. 2. Continue to accurately account for fine revenues that result from parking enforcement. FY 2006 Approved Budget FY 2007 Approved Budget REVENUES: $40,000 $40,000 EXPENDITURES: Salaries /Wages /Benefits $57,970 $39,824 Materials, Supplies Services 12,611 15,575 Capital Outlay NET USE OF FUND BALANCE $30,581 $15,399 PERSONNEL: Number of FTE positions 2 1 Percent Change 0% 49.6% 122 PROGRAM: Parking Operations PROGRAM SUMMARY Implement and manage parking recommendations by the City Council and the Parking Committee and follow -up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. 2. 3. 4. 5. 6. Update parking brochure and map. Develop and implement marketing plan for permit parking and municipal ramp. Review funding options for future maintenance of public lots. Implement moderate permit rate increase to help keep pace with inflation and rising maintenance costs of aging structures. Maintain and improve public parking lots as needed. Work with Public Works Department to complete analysis of public parking lots. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay NET SOURCE OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $61,500 $61,500 0% $4,500 $5,753 27.9% 5,123 3,334 -34.9% $51,877 $52,413 1.0% .15 .15 PARKING FUND FUND 214 PROGRAM: Parking Ramp PROGRAM SUMMARY Proper handling of all matters related to the operation and administration of the leased parking system for the ramp. Implement recommendations by the City Council and the Parking Committee and follow -up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. REV EN U ES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay NET USE OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $0 $0 -100% 0% 33,246 31,918 -3.9% 15,000 11.600 -22.7% 550,246 543.518 13.4% .15 .15 123 Revenues Intergovernmental Federal Sec 8 128,659 115,093 112,626 54,074 110,000 108,000 99.73% Interest Earnings 2,431 2,372 1,987 4,755 3,500 5,000 5.15% Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Total Expenditures Excess (deficiency) of revenue over expenditures SECTION 8 BUDGET Revenues and Expenditures Actual Actual 2003 2004 131,090 117,465 51,494 62,232 13,515 16,171 164 129 5,499 2,367 9,832 7,176 19,907 9,215 5,416 4,878 3,071 10,772 108,898 112,939 114,585 22,192 4,526 CITY OF HOPKINS 2007 BUDGET Actual 2005 114,613 58,829 113,500 113,000 92.08% 68,869 17,628 2,515 8,701 9,815 6,457 600 28 YTD Actual 2006 36,353 9,246 1,497 3,706 3,903 3,586 4,148 62,439 (3,610) Budget 2006 65,300 19,745 200 3,800 11,500 10,115 6,000 2,306 The Section 8 Housing Department administers the HUD rental assistance program. 124 Budget Percent 2007 Change 71,689 97.20% 16,179 74.98% 200 #DIV /0! 3,500 133.80% 10,800 191.42% 5,429 39.10% 6,000 67.32% 1,202 71.02% 118,966 114,999 84.18% (5,466) (1,999) 44.63 Special Revenue Fund 215 Revenue and Expenditure Highlights Telephone equip maint Postage, training and other misc. Accounting, admin. and insurance Office supplies and small equip. SECTION 8 FUND FUND 215 PROGRAM: Section 8 PROGRAM SUMMARY Administration of HUD Section 8 Rental Assistance program in conjunction with the contract between the City and the Metropolitan Council. We process applications and verify income while completing yearly re- examinations of program participants. Staff also perform housing inspections in accordance with Section 8 Housing Quality Standards and complete other program related tasks as required. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Manage Section 8 Administration with reduced funding and monitor staffing needs to continue to adequately deliver services. 2. Perform Outreach to Section 8 Owners and provide training on program policies and procedures to improve communication and understanding of responsibilities. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $113,500 $113,000 -1.82% EXPENDITURES: Salaries /Wages /Benefits $85,045 $87,868 3.23% Materials, Supplies Services 31,921 26,231 17.83% Capital Outlay 2,000 900 -55.0% NET SOURCE (USE) OF FUND BALANCE ($5,466) ($1,999) -63.43% PLRSONNEL: Number of FTE positions 1.35 1.35 125 Revenues Franchise Fees Charges for Services Proceeds from Sale of Assets Interest Earned Total Revenue Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Office Furniture and Equipment Equipment Allocation Transfer Out Total Expenditures Excess (deficiency) of Revenues over Expenditures CABLE BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget 2003 2004 2005 2006 2006 2007 137,931 155,727 151,516 39,645 150,000 150,000 80 500 6,365 5,953 6,018 14,537 6,500 144,796 161,680 157,614 54,182 156,500 35,423 4,133 7,383 6,481 7,576 1,409 21,149 23,122 20,152 2,897 3,451 1,214 16,200 12,428 14,014 7,927 11,375 10,591 1,639 3,018 1,020 8,970 680 432 401 86,920 86,920 92,396 161,425 143,104 52,400 CITY OF HOPKINS 2007 BUDGET 255 14,510 126 2,872 7,732 10,329 33.59% part-time 677 1,464 2,457 67.83% 6,552 805 8,420 6,603 1,481 19,460 2,400 10,815 10,805 1,400 5,000 #DIV /0! Council Chamber Audio improve. 356 610 443 27.38% Computer and equip. allocation 86,920 27,766 141,606 The Cable fund records the City's share of a five city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. 6,500 156,500 41,540 2,200 14,215 10,495 1,500 86,920 Percent Change #DIV /0! #DIV /0! 113.46% -8.33% 31.44% -2.87% 7.14% 175,099 23.65% 26,416 14,894 (18,599) 224.88% Special Revenue Fund 217 Revenue and Expenditure Highlights Audit and other consulting Equipment maint. telephone. Post, print, adver., train, misc. Space occup., admin. fee, ins. Office and general supplies 'ROGRAM: Communication and Cable Liaison FUND 217 REVENUES: EXPENDITURES: Salaries /Wages/Benefits Materials, Supplies Services Capital Outlay Transfer Out NET SOURCE (USE) OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $125,000 $125,000 0% 7,043 12,783 81.562% 11,669 29,498 152.8% 5,000 86,920 86,920 0% $19,369 ($9,204) 147.5% .05 1 CABLE FUND PROGRAM SUMMARY Provide two -way communication between the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 200 1. Reestablish information programming on Channel 16. 2. Complete a citywide survey of residents. 127 CABLE FUND FUND 217 PROGRAM: Newsletters PROGRAM SUMMARY Provide newsletter for the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. Written communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Analysis of advertising as a revenue option. REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay FY 2006 FY 2007 Approved Approved Budget Budget Percent Change 0% -0% 16,578 13,447 -18.9% NET (USE) OF FUND BALANCE $16,578 $13,447 18.9`% PERSONNEL: Number of FTE positions 0 0 CABLE FUND FUND 217 PROGRAM: Web and Messaging PROGRAM SUMMARY Provide communication for the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies through a web site. Also maintain the Razzle line. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Make LaserFiche documents available through web site. 2. Begin implementation of interactive forms on web site. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $31,500 $31,500 0% EXPENDITURES: Salaries/Wages /Benefits 2,153 0 -100% Materials, Suppl Services 23,244 27,448 18.1% Capital Outlay NET SOURCE (USE) OF FUND BALANCE $6,103 $4,052 -33.6% PERSONNEL: Number of FTE positions 128 Th Hook Business Education Arts Revenues Intergovernmental Leases and Rentals Concessions Donations Contributions Interest Miscellaneous Transfer in Total Revenues Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Capital Outlay Improvements Total Expenditures Excess (deficiency) of Revenues over expenditures Actual Actual 2003 2004 51,000 70,000 4,755 82,786 86,218 94,387 31,825 15,499 5,872 10,074 179,670 272,746 198,392 231,331 (18,722) 41,415 CITY OF HOPKINS 2007 BUDGET DEPOT BUDGET Revenues and Expenditures YTD Actual Actual Budget Budget Percent 2005 2006 2006 2007 Change 56,000 59,879 94,195 16,953 7 17,500 37,000 111.43% 27,871 63,899 56,600 11.42% 15,444 100,418 100.00% 40,485 12,500 5,000 60.00% 610 1,200 6,569 3,274 7,000 7,900 233,596 94,264 109,431 11,639 2,465 23,800 28,230 5,807 671 18,898 22,880 115,134 41,350 7,863 9,255 9,774 4,610 6,431 6,586 6,800 2,876 1,088 1,879 1,984 1,422 46,047 53,070 62,663 11,664 1,725 213,801 66,783 19,795 20,908 129 87,691 201,317 107,700 1,600 4,017 151.06% Part-time Sound Employees 525 104,175 10,299 11,605 1,404 51,674 2,500 183,782 17,535 851 62.10% 63,050 39.48% 10,440 1.37% 11,800 1.68% 2,357 67.88% 4,850 90.61% 2,500 99,865 45.66% The Depot Coffee House Fund accounts for the operations of the coffee house business and teen cener operations. Addional grant funds support these operations. 7,835 55.32% Special Revenue Fund 219 Revenue and Expenditure Highlights Federal State Grants School Dist room rents Concessions Sales Contributions Grants Cover charges General fund support -46.50° Consulting, Professional Services Telephone, heat electricity Equip. rental, training misc Insurance supplies and equipment Coffee equipment DEPOT COFFEE HOUSE FUND FUND 219 PROGRAM: Teen Center PROGRAM SUMMARY Provide a teen oriented community center, which is funded primarily through contractual coffee house operations, admittance fees, rentals, and grants. The Depot program strives to educate and serve teens, strengthening their involvement in community activities, and nurturing their growth and development as citizens through interaction with boards, councils, and commissions. A Depot Board a Partners Advisory Team, consisting of students, community members, community business partners, City, and Hopkins School District representatives, support the activities of the facility. Services offered through the teen center include social programs, student outreach programs, educational programs, and chemical dependency education. Late afternoon and Friday evening hours are generally utilized for teen center related activities. The facility /grounds also serve as a Trailhead for Three Rivers Park District. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Provide drug free environment for teens. 2. Provide leadership opportunities for teens. 3. Provide educational opportunities for teens 4. Complete agreements with Three Rivers Park District and the Regional Railroad Authority to transfer the site landlord role to Three Rivers Park District to facilitate future site improvements. 130 REVENUES: EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $201,317 $107,700 -46.5% 2,125 4,868 129.08% 179,157 92,497 48.37% 2,500 2,500 0% NET SOURCE (USE) OF FUND BALANCE 17,535 $7,835 -55.32% .05 .05 Revenues Current Services Grants Interest Charges for Service Miscellaneous Transfers In Total Revenues Operating Expenses Salaries,' Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Interest Expense Capital Outlay Equipment Total Expenses Excess (deficiency) of Revenues over Expenditures ART CENTER Revenues and Expenditures Actual Actual Actual 2003 2004 2005 CITY OF HOPKINS 2007 BUDGET YTD Actual 2006 211,737 263,321 273,650 50,000 50,000 50,000 (3,744) (8,582) (10,996) 24,266 10,556 83,658 700 61,000 147,920 147,920 147,920 227,970 50,000 363,236 416,469 536,317 461,274 199,937 205,044 213,214 237,404 55,695 59,472 61,394 64,290 888 19,909 8,774 10,076 61,789 56,507 67,802 73,747 3,226 3,019 2,840 2,996 6,011 7,664 8,130 9,786 9,506 12,240 15,660 15,563 19,807 18,159 24,360 6,749 12,668 356,859 394,683 402,174 420,611 6,377 21,786 134,143 40,663 131 Budget 2006 262,400 272,670 3.91% 50,000 50,000 16,700 14,700 11.98% 147,920 147,920 477,020 485,290 420,773 437,116 The Art Center fund accounts for the maintenance, operations and promotions of the center. Budget Percent 2007 Change 1.73 9,860 10,100 2.43% 70,400 71,890 2.12% 5,700 3,775 33.77% 8,701 9,106 4.66% 14,700 15,150 3.06% 6,749 9,949 47.41% 3.88% 56,247 48,174 14.35% Special Revenue Fund 250 Revenue and Expenditure Highlights State Aid Cable Econ. Dev. 234,572 249,149 6.21% Three and 3/4 time 70,091 67,997 -2.99% HCA performance maint., heat, elec. tele. Post, advert., train., misc Ins., interest expense Supplies, parts, equip Security equip. ARTS CENTER FUND 250 PROGRAM: Administration PROGRAM SUMMARY The Administration program of the Arts Center strives to improve the quality of resident's life through managing, maintaining, scheduling, promoting and utilizing the Hopkins Center for the Arts as a focal point for arts, education, and community gathering. Schedules, collaborates, and facilitates major tenants activities through meet and confer process. Promotes and leases unallocated space to occasional user and community groups. Uses developed policies to manage the facility. Trains and supervises staff in order to maintain a safe, clean, and inviting facility. MAJOR OBJECTIVES TO BE ACCOMPLISHED MT 2007 1 Develop collaborative efforts with tenants, partners, community that increase net revenues and/or reduce expenses in the Arts Center. 2. Work with HCA, Inc, the programming arm of the Arts Center, to increase HCA, Inc.'s capacity to program and increase revenues. 3. Develop tracking, reporting, and evaluating tools to describe promote the Arts Center's role in the community. 4. Install new lobby carpet. 5. Operate a budget to maximize revenues. REVENUES: $477,020 $485,290 1.73% EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services Capital Outlay $304,663 $317,146 4.10% 112,839 119,970 6.32% 0 0 0% PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change NET SOURCE OF FUND BALANCE 59,518 48,174 -19.06"/0 4.05 4.05 132 SELECTED WORK INDICATORS 1. of reservations (events) 2. of bookings (room uses within events) 3 Total number of reserved hours 4 HCA, Inc. membership total 5. Number on HCA, Inc newsletter mailing list 6. Total customer visits for events /activities Actual Actual Budget 2005 2006 2007 790 700 750 5,598 5,570 5,600 36,950 35,710 37,000 441 433 500 8,700 9,801 11,000 182,800 202,000 210,000 roc 'Hi AK I'1 lid LA MR n OP Revenues Tax Increment Interest Transfers In Expenditures TIF DISTRICT 1 -2 BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 49,409 50,396 47,963 54,022 50,000 50,000 849 729 694 2,633 700 700 Materials, Supplies and Services Professional Technical Services 820 182 544 468 500 500 Operations 34,458 29,525 292 27,514 26,981 1.94% Capital Outlay TIF projects 150,000 75,000 75,000 75,000 #DIV /U! Total Expenditures 185,278 75,182 105,069 760 28,014 102,481 265.82% Transfers out for debt Total Expenditures 185,278 75,182 105,069 760 28,014 102,481 265.82% Excess (deficiency) of Revenues over Expenditures (135,020) (24,057) (56,412) 55,895 22,686 (51,781) 328.25% The Tax Increment District 1 -2 Fund is the redevelopment of former Suburban Chevrolet property. The tax increment district is located in the Central Business District. The fund records the use of tax increment receipts. 133 Special Revenue Fund 211 Revenue and Expenditure Highlights Henn. Co. Distribution charge Development payment and admin. TIF 1 -2 project TAX INCREMENT DISTRICT 1 -2 FUND FUND 211 PROGRAM: Redevelopment within Central Business District PROGRAM SUMMARY Redevelopment activity of property in the CBD, north and south of Mainstreet between 11 and 12 Avenues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documentation. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $50,700 $50,700 0% EXPENDITURES: Salaries /Wages /Benefits Materials, Supplies Services 28,014 102,481 267.1% Capital Outlay Transfer Out Debt Service NET SOURCE (USE) OF FUND BALANCE $22,686 ($51,781) -140.2 PERSONNEL: Number of FTE positions 0 0 134 Revenues Tax Increment 375,899 373,571 371,125 373,000 375,000 375,000 Interest 6,602 5,843 2,062 6,000 3,000 3,000 Total Revenues 382,501 379,414 373,187 379,000 378,000 378,000 Expenditures Materials, Supplies and Services Professional Technical Services 2,134 847 2,054 1,464 1,700 2,000 17.65% Development and legal consulting. Operations 23,000 19,000 19,000 18,000 17,253 17,253 Development payment admin. Capital Outlay TIF projects Total Expenditures Transfers out for debt Total Expenditures Excess (deficiency) of Revenues over Expenditures TIF DISTRICT 2 -1 BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 170,588 170,588 170,588 170,588 170,588 170,588 195,722 190,435 191,642 190,052 189,541 189,841 0.16% 219,000 218,000 400,000 216,000 215,000 215,000 414,722 408,435 591,642 406,052 404,541 404,841 0.07% (32,221) (29,021) (218,455) (27,052) (26,541) (26,841) 1.13% The Tax Increment 2 -1 Fund is the redevelopment of an office /warehouse within the project area. The fund records the use of tax increment receipts. 135 Special Revenue Fund 221 Revenue and Expenditure Highlights Tax increments TIF 2 -1 project TAX INCREMENT DISTRICT 2 -1 FUND FUND 221 PROGRAM: Improvement of County Road 3 and former Minneapolis Moline. PROGRAM SUMMARY Coordinate redevelopment activity of former Minneapolis Moline property on 11 Av., south of Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $379,000 $378,000 -.3% EXPENDITURES: Materials, Supplies Services $19,700 $19,253 -.2% Capital Outlay 170,588 170,588 0% Transfer Out Debt Service 216,000 215,000 -5.0% NET SOURCE (USE) OF FUND BALANCE $(27,288) $(26,841) -1.5% PERSONNEL: Number of FTE positions 0 0 136 TIF DISTRICT 2 -6 BUDGET Revenues and Expenditures CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Revenues Tax Increment 13,498 19,089 18,544 15,208 18,500 18,000 Interest 581 513 370 1,041 500 500 Miscellaneous 5,550 549 5,000 1,000 Total Revenues 14,079 25,152 19,463 16,249 24,000 19,500 Expenditures Materials, Supplies and Services Professional Technical Services 681 47 406 364 500 500 Operations 250 292 550 #DIV /0! Capital Outlay TIF projects #DIV /0! Total Expenditures 931 47 406 656 500 1,050 110.00% Transfers out for debt #DIV /0! Total Expenditures 931 47 406 656 500 1,050 110.00% Excess of Revenues over Expenditures 13,148 25,106 19,057 15,593 23,500 18,450 21.49% The Tax Increment 2 -6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 137 Special Revenue Fund 226 Revenue and Expenditure Highlights -2.70% Increased increments 80.00% Reimbursements to cover shortfall. 18.75% Fees Administration. TAX INCREMENT DISTRICT 2 -6 FUND FUND 226 PROGRAM: Sonoma Handicap Housing Project PROGRAM SUMMARY Coordinate redevelopment of northwest corner of 5 Avenue and Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. REVENUES: EXPENDITURES: Materials, Supplies Services Capital Outlay NET SOURCE OF FUND BALANCE PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $24,000 $19,500 26.16% 500 1,050 110.0% $23,500 $18,450 21.5% 0 0 138 TIF DISTRICT 2 -9 BUDGET Revenues and Expenditures Actual 2003 Actual 2O 4 CITY OF HOPKINS 2007 BUDGET YTD Actual Actual Budget Budget Percent 2005 2006 2006 2007 Change Revenues Tax Increment 118,111 133,457 152,191 119,000 146,372 150,000 2.48% Intergovernmental Mkt Value Credit 13,980 12,367 11,194 14,494 12,000 #DIV /0! Development Fees #DIV /0! Interest 4,220 4,424 3,723 4,600 10,238 4,000 60.93% Total Revenues 136,311 150,249 167,108 138,094 156,610 166,000 6.00% Expenditures Materials, Supplies and Services Professional Technical Services 1,560 373 965 965 1,100 1,100 Operations 1,379 1,500 2,856 90.40% Transfers out for debt 130,000 133,000 133,000 133,000 133,000 134,000 0.75% Total Expenditures 132,939 133,373 133,965 133,965 135,600 137,956 1.74° Excess (deficiency) of Revenues over Expenditures 3,373 16,876 33,143 4,129 21,010 28,044 33.48% The Tax Increment District 2 -9 is the Oaks of Mainstreet development. This fund records the use of tax increments and bond proceeds. Residential homes were built and sold to improve the overall area. 139 Special Revenue Fund 229 Revenue and Expendit Highlights Henn. Co. Dist. Fee Administration. TAX INCREMENT DISTRICT 2 -9 FUND FUND 229 PROGRAM: Redevelopment Area Oaks of Main Street. PROGRAM SUMMARY Coordinate redevelopment activity on southeast corner of Shady Oak Road and Mainstreet. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $156,610 $166,000 6.0% EXPENDITURES: Materials, Supplies Services 2,600 3,956 52.1% Capital Outlay Transfer Out Debt Service 133,000 134,000 .7% NET SOURCE (USE) OF FUND BALANCE $21,010 $28,044 36.6% PERSONNEL: Number of FTE positions 0 0 140 Revenues Tax Increment Development Fees Interest Total Revenues Expenditures Materials, Supplies and Services Professional Technical Services Operations Capital Outlay TIF projects Total Expenditures Excess (deficiency) of Revenues over Expenditures TIF DISTRICT 2 -10 BUDGET Revenues and Expenditures Actual 2003 Actual 2004 86,291 87,467 83,516 87,000 87,000 92,000 5.75% #DIV /0! 1,276 1,449 805 1,000 1,000 1,000 87,567 88,915 84,321 88,000 88,000 93,000 5.68% 1,527 492 1,369 500 4,959 4,960 62,130 62,862 119,904 64,157 23,411 CITY OF HOPKINS 2007 BUDGET 68,313 126,233 20,603 (41,912) YTD Actual Actual 2005 2006 The Tax Increment District 2 -10 is the Hopkins Business District redevelopment. This fund records the use of tax increment revenues. 141 74,000 80,100 7,900 Budget 2006 74,000 80,100 7,900 Budget 2007 74,000 Percent Change 79,950 -0.19% 13,050 65.19( Special Revenue Fund 230 Revenue and Expenditure Highlights 900 900 900 Consulting. 5,200 5,200 5,050 -2.88% Administration. Developer payment TAX INCREMENT DISTRICT 2 -10 FUND FUND 230 PROGRAM: Redevelopment Area Hopkins Business Center. PROGRAM SUMMARY Coordinate redevelopment activity of project area south of Excelsior Boulevard and west of 1 lth Avenue. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $88,000 $93,000 5.7% EXPENDITURES: Materials, Supplies Services 6,100 5,950 -2.5% Capital Outlay 74,000 74,000 0% Transfer Out Debt Service NET SOURCE OF FUND BALANCE $7,900 $13,050 65.2% PERSONNEL: Number of FTE positions 0 0 142 CITY OF HOPKINS 2007 BUDGET Capital Outlay TIF projects 394,927 19,995 TIF DISTRICT 2 -11 BUDGET Revenues and Expenditures YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change Excess (deficiency) of Revenues over Expenditures (547,734) 141,809 128,888 364,123 143,350 (2,332,153) -1726.89" The Tax Increment District 2 -11 fund is the SuperValu and Super Value North Annex redevelopment. This fund records the use of tax increments and bond procecds. Revenues Tax Increment 357,928 346,603 297,507 351,533 350,000 350,000 Interest 65,063 55,359 43,837 117,328 40,000 40,000 Miscellaneous 21,505 4,075 Refunds reimbursements 113,817 60,000 #DIV /0! Total Revenues 444,496 406,036 341,344 582,678 390,000 450,000 15.38% Expenditures Materials, Supplies and Services Professional Technical Services 385,617 32,586 809 110,617 35,000 70,000 100.00% Operations 24,186 23,647 23,647 13,938 23,650 24,153 2.13% Transfers out 187,500 188,000 188,000 94,000 188,000 2,688,000 1329.79% Total Expenditures 992,230 264,228 212,456 218,555 246,650 2,782,153 1027.98% 143 Special Revenue Fund 231 Revenue and Expenditure Highlights Consulting. Administration. TAX INCREMENT DISTRICT 2 -11 FUND PROGRAM: Redevelopment Area North Annex Property PROGRAM SUMMARY Coordinate and review development and redevelopment activity. FUND 231 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. 2. Work with Opus to coordinate redevelopment project. REVENUES: EXPENDITURES: Materials, Supplies Capital Outlay Transfer Out Debt Service NET SOURCE (USE) OF BALANCE PERSONN EL: Number of FTE positions FY 2006 Approved Budget $390,000 58,650 188,000 0 FY 2007 Approved Budget $450,000 94,153 2,688,000 $143,350 ($2,332,153) 1726`%, 0 Percent Change 15.4% 60.5% 1329% 144 Revenues Interest Development Fees Transfer In Total Revenues Expenditures Materials, Supplies and Services Professional Technical Services 1,438 Operations Capital Outlay CITY OF HOPKINS 2007 BUDGET TIF 1 -3 GPS DEVELOPMENT SIXTH MAIN Revenues and Expenditures YTD Actual Actual Actual Budget Budget Percent 2004 2005 2006 2006 2007 Change 187 487 200 200 147,500 13,889 50,000 70,000 40.00% 2,000,000 #DIV /0! 147,687 14,376 50,200 2,070,200 4023.90% 145,493 6,733 50,200 70,000 39.44% Henn. Co. Dist. Fee 429 #DIV /0! Administration. TIF Projects 2,000,000 #DIV /0! Total Expenditures 1,438 145,922 6,733 50,200 2,070,000 4023.51% Excess of Revenues over Expenditures (1,438) 1,765 7,643 200 #DIV/0! TIF 1 -3 is the redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. Special Revenue Fund 232 Revenue and Expenditure Highlights TAX INCREMENT DISTRICT 1 -3 FUND FUND 232 PROGRAM: Redevelopment Area —6 Mainstreet PROGRAM SUMMARY Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into mixed -use condo retail property. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. 2. Work with developer on implementation of project. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: $50,200 $2,070,20 4023% EXPENDITURES: Materials, Supplies Services 50,200 70,000 39.4% Capital Outlay 2,000,000 Transfer Out Debt Service NET SOURCE OF FUND BALANCE 200 -`A, PERSONNEL: Number of FTE positions 0 0 146 Revenues Interest Development Fees Transfers In Total Revenues TIF 1 -4 MARKETPLACE II Revenues and Expenditures CITY OF HOPKINS 2006 BUDGET YTD Actual Budget Budget Percent 2006 2006 2007 Change #DIV /0! 40,000 #DIV /0! 900,000 #DIV /0! 940,000 #DIV /0! Expenditures Materials, Supplies and Services Professional Technical Services 40,000 #DIV /0! Operations #DIV /0! Capital Outlay TIF Projects 900,000 #DIV /0! Total Expenditures 940,000 #DIV /0! Excess of Revenues over Expenditures #DIV /0! The Tax Increment District 1 -4 Fund is the redevelopment of several blocks of the downtown business district into a housing and retail development. This fund records the tax increment revenues. 147 Special Revenue Fund 233 Revenue and Expenditure Highlights Administration. TAX INCREMENT DISTRICT 1 -4 FUND FUND 233 PROGRAM: Redevelopment Area Marketplace I1 PROGRAM SUMMARY Redevelopment of property between Marketplace and Main into mixed -use condo retail property. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Assist in preparation of program budget and other required documents. 2. Work with developer on implementation of project. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change REVENUES: 0 $940,000 EXPENDITURES: Materials, Supplies Services 0 40,000 Capital Outlay 900,000 Transfer Out Debt Service NET SOURCE OF FUND BALANCE 0 PERSONNEL: Number of FTE positions 0 0 148 11* Tin at it 'grit 1* WAI A mi CWryrkJM O 0J11 /rude Inc., 2002. All ngnls reserved CITY OF HOPKINS 2007 BUDGET EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses internal Service Fund 602 YTD Actual Actual Actual Actual Budget Budget Percent Revenue and Expenses 2003 2004 2005 2006 2006 2007 Change Highlights Revenues Current Services 259,136 256,920 256,920 288,489 289,800 287,125 -0.92% Property taxes Intergovernmental Revenue 326,841 Interest Earnings 21,457 44,456 18,691 45,190 40,000 40,000 Miscellaneous 4,335 18,910 143,955 107,986 15,000 15,000 Total Revenues 284,928 647,127 419,566 441,665 344,800 342,125 Operating Expenses Materials, Supplies and Services Professional Technical Services 500 1,189 3,350 850 550 900 63.64% Audit Utilities and Maintenance 14,071 13,406 15,894 18,367 20,640 27,640 33.91% Vehicle equip. maint. and lease. City Support Services 3,014 2,362 2,362 7,964 2,362 9,183 288.78% Administrative fee Total Operating Expenses 17,585 16,957 21,606 27,182 23,552 37,723 60.17% Non- operating expenses 312,932 303,029 289,679 405,996 406,000 305,000 24.88% Depreciation Total Expenses 330,517 319,986 311,285 433,178 429,552 342,723 20.21% Net Income (Loss) (45,589) 327,141 108,281 8,487 (84,752) (598) 99.29% Capital 81,145 1,151,201 740,388 355,500 355,500 296,700 100.00% Equipment replacement The Equipment Replacement fund is an internal service fund. It accounts for the acquisition of machinery and equipment. User charges are billed to the various departments. 149 EQUIPMENT REPLACEMENT FUND FUND 602 PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty -year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Prepare annual plan. 2. Analyze future needs. FY 2006 FY 2006 Approved Approved Percent Budget Budget Change REVENUES: $344,800 $342,125 -.8% EXPENDITURES: Materials, Supplies Services 23,552 37,723 60.2% Depreciation 406,000 305,000 -24.9% NET SOURCE (USE) OF EQUITY $(84,752) $(598) -99.3% Capital Purchases $355,500 $296,700 -16.5% PERSONN EL: Number of FTE positions 0 0 Working Capital Balance Assessment Year Cash Sources Cash Uses Net Gain or (Use) Cash Projection 2007 479,931 413,490 66,441 1,243,800 2008 417,073 890,755 473,682 770,118 2009 432,341 400,120 32,221 802,339 2010 468,533 1,148,821 680,288 122,051 2011 476,136 347,958 128,178 250,229 2012 528,942 739,331 210,389 39,840 2013 545,220 715,943 170,723 130,883 2014 539,144 421,495 117,649 13,234 2015 564,731 431,286 133,445 120,211 2016 591,739 688,120 96,381 23,830 2017 603,784 659,197 55,413 31,583 2018 1,623,788 1,534,117 89,671 58,088 2019 617,920 576,684 41,236 99,324 2020 1,656,978 1,745,397 88,419 10,905 2021 634,289 557,659 76,630 87,535 2022 665,078 582,071 83,007 170,542 2023 697,249 402,234 295,015 465,557 2024 740,097 745,850 -5,753 459,804 2025 770,593 1,171,521 400,928 58,876 2026 784,537 590,548 193,989 252,865 EQUIPMENT REPLACEMENT FUND FUND 602 PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty -year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Prepare annual plan. 2. Analyze future needs. FY 2006 FY 2006 Approved Approved Percent Budget Budget Change REVENUES: $344,800 $342,125 -.8% EXPENDITURES: Materials, Supplies Services 23,552 37,723 60.2% Depreciation 406,000 305,000 -24.9% NET SOURCE (USE) OF EQUITY $(84,752) $(598) -99.3% Capital Purchases $355,500 $296,700 -16.5% PERSONN EL: Number of FTE positions 0 0 Working Capital Balance Assessment Revenues Current Services Permits Interest Earnings Miscellaneous Total Revenues Operating Expenses Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Depreciation Total Operating Expenses Non operating expenses Total Expenses Net Income (Loss) CITY OF HOPKINS 2007 BUDGET WATER BUDGET Revenues and Expenses YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 920,258 803,287 960,266 961,038 998,000 1,019,600 2.16% 11,508 2,081 (1,164) (5,181) 12,000 5,000 58.33% 24,594 17,889 10,216 25,795 20,000 16,000 20.00% 30,920 41,520 28,812 32,140 26,000 28,000 7.69% 987,280 864,777 998,130 1,013,792 1,056,000 1,068,600 1.19% 234,733 224,913 249,502 294,619 204,574 212,752 4.00% Three full time employees 76,365 69,777 79,715 86,643 64,288 65,027 1.15% 38,488 23,780 30,270 33,337 42,345 41,700 -1.52% 150,490 177,367 171,810 184,697 181,200 176,400 2.65% 7,717 5,866 13,261 15,483 17,100 21,450 25.44% 189,675 183,276 191,227 174,076 182,857 177,121 -3.14% 66,848 53,483 53,153 64,484 58,715 62,115 5.79% 227,004 234,863 211,929 264,996 265,000 265,000 991,320 973,324 1,000,867 1,118,335 1,016,079 1,021,565 0.54% 84,079 130,008 124,532 121,223 121,033 115,259 -4.77% 1,075,399 1,103,332 1,125,399 1,239,558 1,137,112 1,136,824 -0.03% (88,119) (238,556) (127,269) (225,766) (81,112) (68,224) 15.89% The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 151 Enterprise Fund 703 Revenue and Expenses Highlights Water rates increased to $1.40 /gal Water sampling, audit, legal Equip. maint., heat elec. Postage, adver., train. misc. Admin. fee and insurance. Supp., uniforms, parts equip. bond interest expense. WATER UTILITY FUND 703 PROGRAM: Pumps Wells PROGRAM SUMMARY The Pumps Wells program of the Water Utility Fund provides maintenance to the City's water well pumping system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Produce water supply sufficient to meet the needs of 17,000 people. 2. Flush and check all hydrants annually. 3. Check all wells each day. 4. Test samples each month to ensure safe water supply. 5. Complete Phase II of the Wellhead protection plan. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change OPERATING REVENUES: $463,000 $458,800 -.1% OPERATING EXPENSES: Salaries /Wages /Benefits $101,641 $106,210 4.5% Materials, Supplies Services 394,208 418,370 6.1% Operating Income (Loss) (32,849) (65,780) 152.8% NON OPERATING REVENUES: 10,000 8,000 -20.0% NON OPERATING EXPENSES: 69,226 65,564 -5.3% NET INCOME (LOSS) ($92,075) ($123,344) 33.9% PERSONNEL: Number of FTE positions 1.31 1.31 152 WATER UTILITY FUND 703 PROGRAM: Water Distribution PROGRAM SUMMARY The Water Distribution program of the Water Utility Fund provides maintenance to the City's water system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Produce water supply sufficient to meet the needs of 17,000 people. 2. Flush and check all hydrants annually. 3. Test samples each month to ensure safe water supply. 4. Ensure all affected customers are given adequate notice of all scheduled water shut offs, both by the city and contractors. 5. Reduce copper levels at taps to comply with Safe Drinking Water Act. 6. Continue to replace the commercial meters to radio read system. OPERATING REVENUES: OPERATING EXPENSES: Salaries /Wages /Benefits $167,221 $171,569 2.6% Materials, Supplies Services 353,009 325,416 -7.8% Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: NET INCOME (LOSS) Construction: PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $565,000 $593,800 5.1% 54,770 104,815 91.2% 10,000 8,000 -20.0% 51,806 49,695 -.4.1% $2,963 $55,120 1759% 75,000 75,000 0% 1.94 1.94 Revenues Current Services Permits Interest Earnings Miscellaneous Total Revenues Operating Expenses Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Depreciation Total Operating Expenses Non operating expenses Total Expenses Net Income (Loss) Actual 2003 1,306,341 17,913 26,559 SANITARY SEWER BUDGET Revenues and Expenses Actual 2004 CITY OF HOPKINS 2007 BUDGET Actual 2005 153 YTD Actual 2006 1,229,280 1,257,706 1,303,421 9,600 5,059 6,905 26,228 12,731 33,177 14,891 14,959 16,583 1,350,813 1,279,999 1,290,455 1,360,086 131,583 151,644 129,936 143,895 39,646 36,290 42,225 43,962 8,512 19,268 13,992 23,988 23,758 34,657 50,392 33,936 954,193 856,175 928,007 964,343 199,658 196,285 197,478 251,990 8,765 19,824 16,098 18,025 93,628 396,057 97,457 146,412 1,459,742 1,710,200 1,475,5 85 1,626,550 50,000 50,000 50,000 1,459,742 1,760,200 1,525,5 85 1,676,550 (108,929) (480,202) (235,130) (316,464) Budget 2006 1,387,000 8,500 27,000 15,000 1,437,500 196,004 58,011 54,740 71,450 961,478 200,849 24,300 146,414 1,713,246 50,000 1,763,246 (325,746) The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. Budget 2007 Percent Change 1,429,900 8,000 5.88% 27,000 15,000 1,479,900 2.95% Enterprise Fund 707 Revenue and Expenses Highlights 3.09% Rates increased by $0.25 Less cash lower rates 197,263 0.64% 3 3/4 full time emplys 60,907 4.99% 51,100 70,550 1,179,957 256,742 25,800 150,000 1,992,319 6.65% -1.26% 22.72% 27.83% 6.17% 2.45% 16.29% 50,000 2,042,319 15.83% (562,419) 72.66% GIS, audit, legal consulting Equip. maint., heat electr. Disposal, adver, train, misc. Admin. fee and insurance. Suppls, fuel, parts equip. Transfers for cap imp SEWER UTILITY FUND 707 SEWER UTILITY FUND 707 PROGRAM: Lift Stations PROGRAM SUMMARY The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the City's sanitary sewer lift station system. The system is comprised of 7 sanitary sewer lift stations that pump sewage to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Mechanically clean 33% of sanitary sewer lines in the City. 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility mapping system. FY 2006 Approved Budget OPERATING REVENUES: $275,000 $275,000 0% OPERATING EXPENSES: Salaries/Wages/Benefits $143,546 $149,549 4.2% Materials, Supplies Services 261,753 241,869 -7.6% Operating Income (Loss) (123,299) (108,419) -11.3% NON OPERATING REVENUES: 7,000 NON OPERATING EXPENSES: 0 7,000 0% 0 0% FY 2007 Approved Percent Budget Change NET INCOME (LOSS) $(123,299) $(109,419) -11.3% Construction: PERSONNEL: Number of FTE positions 1.95 1.95 154 PROGRAM: Collection Disposal PROGRAM SUMMARY The Collection Disposal program of the Sewer Utility Fund provides maintenance to the City's sanitary sewer system. The system is comprised of sewers, manholes, and lift stations so that sewage may be transported to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Mechanically clean 33% of sanitary sewer lines in the City plus monthly checks of manholes in problem areas. 2. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 3. Verify accuracy and implement new utility mapping system. OPERATING REVENUES: OPERATING EXPENSES: Salaries /Wages /Benefits Materials, Supplies Services Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: NET INCOME (LOSS) Construction: PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Budget Budget $1,135,500 $1,177,900 $110,469 $108,621 -1.7% 1,197,478 1,492,280 24.7% (152,447) (403,001) 164.5% 20,000 20,000 0% 50,000 50,000 0% Percent Change 3.7% $(202,447) $(453,001) 164.5`%, 75,000 275,000 266.7% Revenues Current Services County Grant Interest Earnings Miscellaneous Total Revenues Operating Expenses Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Depreciation Total Operating Expenses Non operating expenses Total Expenses Net Income (Loss) CITY OF HOPKINS 2007 BUDGET REFUSE BUDGET Revenues and Expenses YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 510,721 585,025 695,438 675,599 695,100 690,600 -0.65% 23,394 22,891 22,667 22,282 23,000 23,000 13,378 12,734 6,295 20,113 12,500 12,500 5,209 5,860 9,700 11,379 5,700 9,600 68.42% 552,702 626,510 734,100 729,373 736,300 735,700 -0.08% 181,222 179,223 193,161 180,906 222,996 225,701 50,514 48,339 61,183 57,287 68,909 66,626 -3.31% 112,338 106,669 112,786 103,348 121,557 115,250 5.19% 18,304 32,565 24,169 25,592 42,500 41,700 -1.88% 121,649 142,512 151,726 141,395 134,430 134,370 -0.04% 112,282 110,695 111,888 116,348 129,929 128,862 -0.82% 24,934 34,757 39,767 31,656 40,650 39,750 -2.21% 33,378 32,122 44,812 32,496 32,500 32,500 654,621 686,883 739,492 689,027 793,471 784,759 -1.10% 25,000 25,000 25,000 25,000 25,000 654,621 711,883 764,492 714,027 818,471 809,759 -1.06% (101,919) (85,373) (30,392) 15,346 (82,171) (74,059) -9.87% The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 155 Enterprise Fund 717 Revenue and Expenses Highlights New formula for county grant in 2004 1.21% Three and three- quarter employees Recycling service, audit consulting Vehicle equip. maint., heat elec. Disposal, post, adver., train, misc. Administrative fee and insurance. Supplies, parts, fuel, small equip. REFUSE UTILITY FUND 717 REFUSE UTILITY FUND 717 PROGRAM: Bulk Collection PROGRAM SUMMARY The Bulk Collection program of the Refuse Utility Fund provides bulk item pickup for larger items, which are scheduled on a call -in basis on Thursdays throughout the year. Free bulk item drop off service is provided twice per year (spring fall). MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Review and expand user fee based system. (Council Approval Required) 2. Improve drop off procedures and increase efficiency at our bi- annual drop offs. OPERATING REVENUES: OPERATING EXPENSES: Salaries /Wages /Benefits Materials, Supplies Services Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: NET LOSS Construction: PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $12,500 $10,000 -20.0% $23,084 $13,737 -40.5% 36,719 36,587 -.4% (47,303) (47,303) -5.45% $(47,303) $(40,324) -14.8% 0.26 0.26 156 PROGRAM: Yard Waste /Leaf Collection PROGRAM SUMMARY The Yard Waste /Leaf Collection program of the Refuse Utility Fund provides yard waste and leaf collection weekly mid -April through November with a rear load refuse truck or 1 -ton truck. (Subject to change upon Council review.) A free drop -off site is available to Hopkins residents. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor usage of free residential drop off site. 3. Track impact of curbside fee increase. OPERATING REVENUES: OPERATING EXPENSES: Salaries /Wages /Benefits Materials, Supplies Services Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: NET INCOME (LOSS) Construction: PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Percent Budget Budget Change $20,000 $18,000 -10.0% $44,736 $46,212 3.3% 46,567 48,755 4.7% (71,303) (76,967) 7.9% $(71,303) $(76,967) 7.9% 0.62 0.62 REFUSE UTILITY FUND 717 REFUSE UTILITY FUND 717 PROGRAM: Recycle PROGRAM SUMMARY The Recycle program of the Refuse Utility Fund provides the recycling coordination for contract collection (2,990 units) in City service area and administration in remaining areas of the City. Recycling materials are collected single stream (no sorting) at the curb from a wheeled recycling cart by a contracted hauler. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Monitor the Single Stream Recycling Program and work with residents to increase the volume of waste recycled. 2. Continue to promote waste abatement through public awareness campaigns and educational presentations. 3. Update the Recyclopedia for publication in December 2007. OPERATING REVENUES: OPERATING EXPENSES: Salaries /Wages /Benefits Materials, Supplies Services Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: NET INCOME (LOSS) Construction: PERSONNEL: Number of FTE positions FY 2006 Approved Budget FY 2007 Approved Budget Percent Change $98,000 $101,600 3.0% $28,328 $28,969 2.3% 117,326 130,424 11.2% (47,654) (57,793) 41.1% 23,000 23,000 0% $(24,654) $(34,791) 41.1"/o 0.41 0.41 157 PROGRAM: Brush Service PROGRAM SUMMARY The Brush Service program of the Refuse Utility Fund provides the collection of curbside brush weekly on a call -in basis on Fridays throughout the year. Free yard waste/brush drop off is offered two times per week from mid -May through November. (Subject to change upon Council review.) MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor impact of curbside brush pick -up fee increase on program usage. 3. Continue free residential drop off system. OPERATING REVENUES: OPERATING EXPENSES: Salaries /Wages /Benefits Materials, Supplies Services Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: Construction: PERSONNEL: Number of FTE positions FY 2006 FY 2007 Approved Approved Budget Budget Percent Change $47,805 $49,692 3.9% 34,393 25,605 -25.6% (82,198) (82,198) 17.97% NET INCOME (LOSS) $(82,198) $(75,297) -8.4% 0.655 0.655 REFUSE UTILITY FUND 717 PROGRAM: Disposal PROGRAM SUMMARY The Disposal program of the Refuse Utility Fund provides automated refuse collection. Residential Curbside Refuse is collected from roll out carts with a fully automated truck on one of four designated route days. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2006 FY 2007 Approved Approved Percent Budget Budget Change OPERATING REVENUES: $570,300 $570,600 .05% OPERATING EXPENSES: Salaries /Wages /Benefits $147,952 $153,717 3.9% Materials, Supplies Services 266,561 251,061 -5.8% Operating Income (Loss) 155,787 165,822 7.0% NON OPERATING REVENUES: 12,500 12,500 0% NON OPERATING EXPENSES: 25,000 25,000 0% NET INCOME (LOSS) $143,287 $153,322 7.0% Construction: PERSONNEL: Number of FTE positions 2.135 2.135 158 STORM SEWER BUDGET Revenues and Expenses CITY OF HOPKINS 2006 BUDGET Enterprise Fund 740 YTD Actual Actual Actual Actual Budget Budget Percent Revenue and Expenses 2003 2004 2005 2006 2006 2007 Change Highlights Revenues Current Services 628,971 679,556 666,848 727,927 675,500 726,900 -7.20% Storm Sewer rates remain the same Interest Earnings 23,843 24,140 15,649 51,799 22,000 22,000 57.53% Miscellaneous /Transfer In 37,553 38,135 #DIV /0! Total Revenues 690,367 741,831 682,497 779,726 697,500 748,900 10.55% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 17,988 18,523 31,635 21,524 31,789 29,989 47.69% half time employee Fringe Benefits 3,580 4,397 8,391 6,370 7,887 8,162 23.82% Materials, Supplies and Services Professional Technical Services 538 3,645 7,849 2,804 20,550 20,900 632.99% Storm Sewer consulting audit. Utilities and Maintenance 88 1,722 13,197 3,126 23,800 23,800 661.26% Equip. maint., street sweeping, etc... Operations 400 #DIV /0! Storm Sewer projects City Support Services 69,367 78,673 78,789 70,344 79,158 72,128 12.53% Administrative fee and insurance. Supplies and Materials 5,406 2,734 3,782 3,039 11,000 11,000 261.98% Supplies, parts, sand, small equip. Depreciation 165,422 178,026 182,928 185,004 185,000 185,000 Total Operating Expenses 262,389 288,119 326,571 292,210 359,184 350,979 22.92% Non operating expenses 146,893 167,924 155,213 149,132 148,870 137,305 -0.18% Depreciation bond interest exp. Total Expenses 409,282 456,044 481,784 441,342 508,054 488,284 15.12% Net Income 281,085 285,787 200,713 338,384 189,446 260,616 44.01% Bond Principal payment 250,000 330,000 325,000 325,000 325,000 330,000 The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 159 9t1 9V' suog!sod gjA Jo .iaquinN :lIImisiosNgd 091 %8'8 000`£L 1 000`6S1 uo!lon.tisuoa `%►9'L£ 9I9`09ZS 9W68I$ II1/\1ODNI.LIII�I %81, SO£`L£I OL8`8fi1 :SJSI\ladXg JI�II,L�'2Igd0 %0 000`zz 000`ZZ :SgfINIIIAg2I DNIIVIIgdO NON %£'Z 1Z6`SL£ 91 £`91£ awooul OutlutadO %17 8Z8`Z1 80C`61£ SOOIAJOS a' sarlddng `stut.taluyv %8'£ 1 S1`8£$ 9L9`6£$ sljauag/saguM/sai.tuiuS :SHSNgaxa JNIIVIIgdO 006`9ZL$ 00S`SL9$ :SIIlll\IgA DNIIIV'I1dO a5uugj la5png la0png luao.tad pano.tddy panoaddy LOOZ Ad 900Z Ad ioafoid luawaouuqua luliquq puu uoiurtliquis puquwatls )taa.ta aum aUIN papunJ- pags.taluM Jo uotlon isuoo UL5ag 'dddMS II amid `SIIQdN s Jo sluatuannbai llu 130LU pui tualsks a5EUtuip JaluM'mols kilo 'Fenno 5UIMOIn0.I anufuoa •Z •aouuualU!u U ply aSuuiutp uado puu sapu.tiidn aouuualutuuu utsuq qowo 5uipntout waisks .fawn uuols jo sapuaiidn anutluoa 1 LOOZ NI a 1HSI'IdLl1ODDV IIg at S IAISaanto 110ITI1I •suotstntp uotluliuug 78 pans puu Jamas .taluM aql wag luautdinba puu uaut glrnn mop s! )ltonn siq,L •1o.tluoo uotlnllod puu pawn pug j jo -un.t aado td a tnssu of paJol!uoUI aq lsnw sagolip pun slaatj JJo -unJ alunbapu a.tnssu of slatu! u.uois puu saint JOMOS i.U.tols llu sunuiu[uut pun .camas u.uolS alp jo =Bold aouuualunuy\J Jamas aqZ A1W1ATIAIIIS I' IVllOO2Id OIL (IMfU aauEUalUMAI J MOS :IAW119O1Id 2IIIMIIS W2IOIS Revenues Rental Interest Earnings Miscellaneous Total Revenues Operating Expenses Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Total Salaries and Wages Materials, Supplies and Services Professional Technical Services Utilities and Maintenance Operations City Support Services Supplies and Materials Total Materials Supplies Service Total Operating Expenses Non operating expenses Total Expenses Net Income (Loss) CITY OF HOPKINS 2007 BUDGET PAVILION Revenues and Expenses YTD Actual Actual Actual Actual Budget Budget Percent 2003 2004 2005 2006 2006 2007 Change 261,210 267,305 249,460 272,000 272,000 275,375 1.24% 393 (2,610) (4,690) 2,500 2,500 2,500 14,277 93,297 97,883 107,500 107,500 182,906 70.15% 275,880 357,992 342,653 382,000 382,000 460,781 20.62% 135,140 145,851 97,540 148,199 143,794 150,308 4.53% 38,620 42,076 19,340 41,654 44,940 40,879 9.04% 173,760 187,927 116,880 189,853 188,734 191,187 1.30% 5,826 3,203 3,893 5,776 4,490 4,850 8.02% 55,509 63,086 89,864 89,365 83,800 84,150 0.42% 2,719 1,505 2,321 2,184 2,850 2,650 -7.02% 18,411 17,328 17,610 15,389 18,331 17,908 -2.31% 15,551 18,589 24,614 14,597 18,450 18,550 0.54% 98,016 103,711 138,302 127,310 127,921 128,108 0.15% 271,776 291,638 255,182 317,164 316,655 319,295 0.83% 67,735 75,500 76,390 76,150 76,150 76,150 339,511 367,138 331,572 393,314 392,805 395,445 0.67% (63,631) (9,146) 11,081 (11,314) (10,805) 65,336 704.68% The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 161 Enterprise Fund 747 Revenue and Expenses Highlights Two and one -half full time emp. Audit and other consulting. Equip. maint., heat elec. Post., adver., training, and misc. Administrative fee and insurance Supplies, parts, fuel, small equip. Depreciation PAVILION ICE ARENA FUND 747 PROGRAM: Ice, Turf, Dry Floor, Room Rental PROGRAM SUMMARY The rental programs of the Pavilion Fund manages and schedules public use groups and maintenance for the ice arena/pavilion which will utilize the facility to its maximum potential and generate adequate revenue to offset the cost of operations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2007 1. Explore and market program and rental opportunities to increase the community's recreational options and generate additional revenue to offset operations. 2. Maximize the revenue from new sources such as advertising. 3 Develop and utilize energy saving procedures and equipment to lower operating costs and save energy. 4. Operate a budget to maximize revenues. FY 2006 Approved Budget FY 2007 Approved Budget Percent Change OPERATING REVENUES: $379,500 $458,281 20.6% OPERATING EXPENSES: Salaries/Wages/Benefits Materials, Supplies Services Operating Income (Loss) NON OPERATING REVENUES: NON OPERATING EXPENSES: NET INCOME (LOSS) PERSONNEL: Number of FTE positions $188,734 $191,187 1.3% 204,071 204,258 .09% (13,306) 62,836 704.7% 2,500 2,500 0% 0 0 0% 5(10,805) $65,336 704.7% 2.9 2.72 SELECTED WORK INDICATORS 1. Rented prime hours ice 2. Rented non -prime hours ice 3. Pavilion leases for summer use 4. Hours ice resurfacer is in use 5. Hours of part-time employment 6. Open skate hours 7. Teams for indoor soccer 8. Dry Floor Use Hours 9. Hours compressors in use 10. Hours of turf use 11. Hours Of Mezzanine Rental Use 162 Actual Actual Projected 2005 2006 2007 1220 1266 1270 213 177 230 4 5 8 237 229 240 1932 1947 2000 180 180 180 9 11 12 162 197 200 4227 4400 4500 362 407 450 351 339 400 Revenues Property Tax Special Assessments Interest Transfer In Bond Proceeds Total Revenues Expenditures Bond expenditures Professional Fees Principal Interest Fiscal charges Transfer Out Total Expenditures Sources (Uses) of Fund Balance DEBT SERVICE FUNDS Revenues and Expenditures Actual Actual 2003 2004 2005 842,369 1,034,767 807,156 672,999 666,001 670,117 27,111 39,433 47,831 1,821,171 2,431,219 1,476,219 3,380,760 3,363,650 4,171,420 6,382,083 1,688,138 1,353,202 3,731 3,045,071 318,579 CITY OF HOPKINS 2007 BUDGET 163 YTD Actual 2006 1,284,526 660,276 34,374 4,006,903 Budget 2006 1,217,000 672,860 24,979 3,927,444 5,986,079 5,842,283 Debt Service funds finance and account for the payment of interest and principal on all general obligation debt other than debt issued for an enterprise fund. Budget 2007 Percent Change 1,207,000 -0.82% 672,460 -0.06% 36,100 44.52% 869,219 77.87% #DIV /0! 2,784,779 52.33% 41,906 1,780,620 2,306,152 4,926,284 4,926,284 1,610,000 67.32% 1,639,888 1,499,826 1,307,169 1,307,169 1,109,033 15.16% 6,932 6,939 8,577 4,665 6,950 48.98% 3,114,684 3,035,225 100.00% 3,427,440 3,854,823 9,356,714 9,273,343 2,725,983 70.60% 743,980 2,527,260 (3,370,635) (3,431,060) 58,796 1.79% Revenue and Expenditure Highlights Annual levy amount Special housing fees TIF, PIR and General fund CITY OF HOPKINS GLOSSARY OF TERMS Accrual Basis The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or the payment of cash may take place, in whole or in part, in another accounting period. Adopted Budget The financial plan of revenues and expenditures for a fiscal year as adopted by the City Council. Appropriation A specific amount of money authorized by the City Council, generally during adoption of the annual budget, used to make expenditures for specific purposes. Ad Valorem Tax Money collected from all the real property within the City based upon the value of the property. Annual Budget The budget authorized by resolution of the City Council for the fiscal year. Appropriation Authorization by the City Council to incur obligations and spend City funds. Appropriations are usually made for fixed amounts and are typically granted for one year. Assets Property owned by a government which as a monetary value. Assessed Valuation A value established by the City Property Appraiser for all real or personal property for use as a basis for levying property taxes. Balanced Budget A budget in which expenditures are equal to income. Bond A written promise to pay a sum of money on a specific date at a specified interest rate as detailed in a bond resolution. Bond Proceeds Funds received from the sale of any bond issue. Budget The financial plan for a specific period of time that identified proposed expenditures and the sources of revenue to pay for them. 2007 BUDGET 164 CITY OF HOPKINS Budget Adjustment A revision to the adopted budget occurring during the affected fiscal year as approved by the City Council by an amendment or a transfer. Budget Documents The official written statement prepared by the Finance Director and supporting staff, which presents the proposed budget to the legislative body. Budget Calendar The schedule of key dates involved in the process of adopting and executing an adopted budget. Budget Message The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, as well as the views and recommendations of the City Manager. CDBG Community Development Block Grant This fund receives and expends the City's allocation of the Federal Community Development Block Grant Program money. Capital Asset Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Improvement Program (CIP) A five year schedule of capital improvement projects and the means of financing them. This is a flexible budget document that is used as a planning tool for needed improvements. Amounts approved in the CIP are considered guidelines and are not officially adopted as budgeted amounts until they are incorporated in the operating budget of one of the City's funds. Capital Outlay Expenditures that result in the acquisition of fixed assets that have a value over $1,000 and a useful life greater than one year. Capital Project Funds The funds that account for all resources unused for the acquisition or construction of capital facilities, except those financed by Proprietary Funds. Certified Levy Total tax levy of a jurisdiction, which is certified to the County Auditor. Contingency A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services The cost of items related to a contractual agreement. Examples would be professional services such as legal, 2007 BUDGET 165 CITY OF HOPKINS engineering, actuarial and consultants. Court Fines and Forfeits Fines imposed on individuals by the courts for various illegal acts performed within the City. Debt Service Funds the funds that account for the payment of principal and interest on outstanding debt for the City. Deficit The excess of expenditures over revenues. Department Basic organizational unit of City government, responsible for carrying out a specific function. Depreciation Expenditures incurred when spreading the cost of an asset over its estimated useful like rather than deducting the entire cost in the year the asset is purchased. Enterprise Fund The funds that account for the financing of self supporting activities of governmental units and render services to the general public based on user charges. Estimated Market Value Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. Expenditure Decreases in financial resources other than through interfund transfers. Fiscal Disparities The program created by the Metropolitan Fiscal Disparities Act which shares growth in the commercial- industrial tax base in the seven county metropolitan area. Forty percent of the value of new commercial- industrial development since 1971 is pooled and redistributed among the 300 taxing districts to address uneven business development throughout the region. Fiscal Year For budgeting purposes the City's fiscal year is the calendar year. Fixed Asset Purchases of a long -term nature, which are to be held and used. equipment. FTE Equivalent of one employee working fulltime, or 2.080 hours per year. combined hours total 2,080 per year. 2007 BUDGET 166 Examples would be land, buildings, machinery, furniture and A FTE can be filled by any number of employees whose CITY OF HOPKINS Fund A separate accounting entity, with a set of self balancing accounts for recording the collection of revenues and the payment of expenditures to carry out a specific function. Fund Balance Difference between fund assets and fund liabilities (the equity) in governmental funds. Fund balances will be classified as reserved or unreserved. Reserved funds Legally segregated for specific use. They are not available for discretionary appropriation due to third party claim or due to the nature of the asset. Unreserved funds Designated funds To establish tentative plans for or restrictions on the future use of financial resources. Undesignated funds The funds remaining after reduction for reserved and designated balances. GASB (Governmental Accounting Standards Board) It is the highest source of accounting and financial reporting guidance for state and local governments. General Fund The largest fund in the City, the General Fund accounts for most of the City's financial resources. General Fund revenues include: property taxes, licenses and permits, local taxes, service charges and other types of revenues. This is the fund that accounts for the revenues and expenditures necessary to deliver basic operating services: police, fire, finance, parks, public works, etc. General Obligation Bonds When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds with are to be repaid from taxes and other general revenues. GFOA (Government Finance Officers Association) the professional association of state and local finance officers in the United States who are dedicated to the sound management of government financial resources. The association sets program standards for the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Governmental Funds The General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. Indirectly Funded Amount The portion of appropriates not funded by program revenues such as fees and grants. This portion is funded from shared revenues such as property tax, governmental revenues or a city -wide fee not directly attributed to any one program. 2007 BUDGET 167 CITY OF HOPKINS Interest Earnings Interest received from the investment of cash in a fund. Intergovernmental Revenues Funds received from State or Federal governments in the form of grants or shared revenues for various activities. Internal Service Funds The funds within the Proprietary Fund that account for the financing of goods or services provided by one department or agency to other departments or agencies of a government. IT Information Technology Department of the city. This department provides computer technology support to all city departments. Levy To impose taxes, special assessments or service charges. Licenses Revenues received by the issuance of various licenses that are granted to various businesses in the City. Local Government Aid Money given to the City from the State based on a formula that was originally designed to provide tax relief and equalization among cities. Major Account Series Three classifications of expenditures made by the City. Salaries, Wages and Benefits Costs relating to employees or temporary help, including fringe benefits. Materials, Supplies and Services Costs relating to articles of non durable nature, such as office supplies; professional and technical services; utilities and maintenance; operations and city support services. Capital Outlay Costs of durable goods such as furniture and equipment. Reimbursed Expenditures Offset against costs for services provided by one fund to another fund. Market Value Credit Started in 2002, this is the primary State program for property tax relief. The State remits a portion of sales and income taxes to local government to assist in keeping property taxes down. MCES Metropolitan Council Environmental Services provides the City with wastewater service. Miscellaneous Revenue Funds collected from various sources generally on a non recurring basis. 2007 BUDGET 168 CITY OF HOPKINS Modified Accrual Basis Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Net Assets The equity associated with general government less liabilities. Operating Expenditure Expenditure classifications based upon the types of categories of goods and services purchased. Typical objects include: personal services (salaries and wages); contracted services (utilities, maintenance, contracts, travel); supplied and materials; and capital outlay. Operating Budget Financial plan for the fiscal year, which authorizes proposed personnel complements, expenditures and the revenues to finance them. Penalties Charges to utility customers caused by late payment of their water, sewer, and refuse bills. Permits Revenue derived from various permits as defined in the City Code, for the performance of a specific action. For example, building a house. Personal Services The cost of salaries and wages paid to employees as well as the fringe benefits associated with employment (i.e. Social Security, PERA, health insurance, life insurance, etc.). Program Within each Department are several divisions or programs in the City, each charged with carrying out a specific function. Proposed Budget Budget as submitted by the City Manager to the City Council. Proprietary Funds The funds that account for government operations financed and operated in a manner similar to a private business. Refuse Service Revenue incurred from the sale of trash pick -up and disposal, leaf pick -up, yard waste and recycling to residential customers of the City. Retained Earnings An equity account reflecting the accumulated earnings of the City's Proprietary (Enterprise) Funds. 2007 BUDGET 169 CITY OF HOPKINS Sewer Service Revenue incurred from the sale of sanitary sewer service to customers of the utility. Special Assessment Receipts from assessments placed on property within the City for public improvements that have benefited that property. Special Revenue Funds A fund that accounts for revenues derived from specific taxes or other earmarked revenue sources. Storm Sewer Sales Revenue derived from a storm sewer utility fee assessed property owners based on the amount of impervious surface on their property. Revenues are used to maintain and improve the City's storm sewer system. Tax Capacity County tax base for the purposes of levying property taxes. Properties are assigned rates at which their values will be converted into the tax base, (see tax classification rate). Tax Capacity Rate Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. Tax Classification Rate Rates at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type. Tax Increment Financing Financing tool originally intended to combat severe blight in areas which would not be redeveloped "but for" the availability of government subsidies derived from locally generated property tax revenues. Tax Increments The value of local taxes collected on a redeveloped or developed property, above the base year taxes. TIF An abbreviation for Tax Increment Financing. Transfers Funds transferred between City funds. Truth -in- Taxation Procedures adopted by the 1998 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. These procedures are revised annually. Truth -in- Taxation Public Hearing Statutory requirement for most local governments to hold public hearings on their proposed budgets 2007 BUDGET 170 CITY OF HOPKINS and property tax levies. Water Sales Revenue earned from the sale of water to customers of the utility. Working Capital Current assets minus current liabilities. This measure is used as a gauge in determining appropriate fund balances. 2007 BUDGET 171