Continued Review of 2020 General Fund Budget & Tax Levy; Bishop
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: November 12, 2019
Subject: Continued Review of 2020 General Fund Budget & Tax Levy
_____________________________________________________________________
PURPOSE
To consider reductions to the proposed 2020 General Fund Budget and Tax Levy.
INFORMATION
On September 17th, City Council passed a preliminary tax levy of $18,032,938, a
$2,055,002 or 12.86% increase from 2019. Based on input received, staff was directed
by City Council to propose reductions to this levy. The following reductions are being
proposed:
o Arts Center – $74,775
The preliminary levy includes $400,000 for the Arts Center
($265,225 to sustain current operations and $134,775 to reduce its
deficit). A reduced levy amount of $325,225 would continue to
sustain current operations and reduce the deficit by $60,000. The
long term proposal is to eliminate the deficit by 2039, instead of a
previous plans to eliminate by 2023.
o General Fund – $221,359
Police Officer - $56,000
• This is a new position planned to start on 7-1-20. If
eliminated the police department would have the same
number of officers in 2019 and 2020.
Cartegraph - $50,000
• Software to assist the Public Work Department.
Contingency - $30,000
• Reduces the contingency budget from $80,000 to $50,000.
Laserfiche Forms - $30,000
• Software to help the City go paperless.
Finance Department
DWI Officer - $29,359
• Current DW I officer grant expires on 9/30/2020. This uses a
less conservative approach to our budget and plans for
receiving an extension of the grant. We will not know
outcome until after final levy is passed.
Banners - $16,000
• Replacement of banners on Excelsior Boulevard (10 years
old) and Mainstreet (4 years old).
IT Intern - $10,000
• New request to support IT department
o Equipment Replacement Fund - $180,000
Equipment Certificates for Wheel Loader - $170,000
• Include equipment with lives greater than 10 years in 2020
bond sale. This would obligate the City to make principal
and interest payments through 2030. Estimated interest and
issuance costs are $22,400 over the life of the bonds. A tax
levy would begin in 2021.
IT Mobile Computer Lab - $10,000
• To be used for emergency management and training. Will
pursue grant funding.
The proposed reductions total $503,254. If all reductions are implemented the tax levy
would be $17,529,684, a $1,551,748 or 9.71% increase from 2019.
FUTURE ACTION
A final levy must be adopted by December 31st of each year at or below the preliminary
levy amount. A Truth and Taxation hearing meeting will occur during the December 3rd
City Council Meeting and approval of the final levy is planned.
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2020
Proposed with Reductions
November 12, 2019
Department 2019 Budget 2020 Budget
% Increase
(Decrease)
Property Taxes 11,821,624 12,564,305 6.28%
Intergovernmental Revenue
PERA Aid 20,510 -
Local Government Aid 556,619 734,946
Intergovernmental Revenue - Other 590,000 618,000
Total Intergovernmental Revenue 1,167,129 1,352,946 15.92%
Licenses, Permits & Fines
Court Fines & Penalties 176,500 177,750
Building Permits & Inspections 440,700 461,300
Inspection Fines & Citations 8,000 8,000
City Clerk - Business Licenses 7,000 7,000
PD - Liquor, Animal Licenses & Penalties 89,100 102,300
Fire - Licenses & Permits 1,100 1,100
Public Works - Licenses & Permits 19,415 19,415
Planning & Zoning - Licenses & Permits 3,500 1,000
Total Licenses, Permits & Fines 745,315 777,865 4.37%
Charges for Service
Finance Department 9,750 5,500
Assessing 3,000 3,000
Inspections 104,360 105,900
Police 25,000 35,000
Fire 10,500 10,500
Public Works 4,150 4,150
Activity Center 94,000 87,000
Total Charges for Service 250,760 251,050 0.12%
Miscellaneous Revenue
Franchise Fees 290,000 296,200
Miscellaneous 15,250 15,250
Finance Department 5,100 1,200
Police 2,000 2,000
Fire 3,500 3,500
Public Works 5,300 5,300
Activity Center 14,500 32,100
Community Development 90,000 60,000
Total Miscellaneous 425,650 415,550 -2.37%
Total Revenues 14,410,478 15,361,716 6.60%
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2020
Proposed with Reductions
November 12, 2019
Department 2019 Budget 2020 Budget
% Increase
(Decrease)
City Council 96,131 97,630 1.56%
Administrative Services 797,580 854,893 7.19%
Finance 351,173 400,495 14.04%
Legal 175,000 175,000 0.00%
Municipal Building 392,396 404,014 2.96%
Assessing 226,682 221,835 -2.14%
City Clerk 183,243 237,513 29.62%
Inspections 818,588 863,296 5.46%
Police 5,609,105 5,977,982 6.58%
Fire 1,399,178 1,483,177 6.00%
Public Works 3,221,137 3,443,017 6.89%
Recreation 269,279 285,279 5.94%
Activity Center 463,416 497,843 7.43%
Planning & Zoning 217,372 222,382 2.30%
Community Development 101,498 108,160 6.56%
Tuition Reimbursement 18,700 19,200 2.67%
Contingency 50,000 50,000 0.00%
Transfer to Other Funds 20,000 20,000 0.00%
Total Expenditures 14,410,478 15,361,716 6.60%
City of Hopkins
2020 Tax Levy
Proposed with Reductions
November 12, 2019
Actual Proposed % Increase
Purpose FY2019 FY2020 (Decrease)
General Operations
General Fund 11,736,624 12,479,305 6.33%
Capital Levy 100,000 75,000 -25.00%
Arts Center 257,500 325,225 26.30%
Pavilion Fund 40,383 290,000 618.12%
Equipment Replacement 230,000 110,000 -52.17%
Total General Operations 12,364,507 13,279,530 7.40%
Debt Levy
Debt Previously Issued 3,613,429 3,844,281 6.39%
Debt Issued in 2019 - 405,873 100.00%
Total Debt Levy 3,613,429 4,250,154 17.62%
Total Levy 15,977,936 17,529,684 9.71%
City of Hopkins
Financial Management Plan Update
Executive Summary
Proposed with Reductions
November 12, 2019
\\LISA\share\FINANCE\BUDGET 2020\11.12.19 Work Session\2019 FMP V11- November 12 Meeting (delayed).xls
2019 2020 2021 2022 2023
Tax Levy Final Projected
General Fund 11,736,624 12,384,194 13,670,068 14,453,454.98 15,304,324.96
Capital Improvements 100,000 75,000 75,000 75,000 75,000
Arts Center 257,500 325,225 333,182 341,377 349,819
Pavilion 40,383 290,000 300,000 300,000 450,000
Debt Service 3,613,429 4,250,154 4,617,717 4,729,097 4,055,889
Equipment Fund 230,000 110,000 80,000 250,000 250,000
Total City Levy 15,977,936 17,434,573 19,075,967 20,148,929 20,485,033
% Increase 12.35%9.12%9.41%5.62%1.67%
Additions from January 11th Goal Setting
DWI Officer - - 61,331 129,610 133,857
Enterprise Software - 17,000 29,500 49,000 51,500
I.T. Intern - - 10,500 11,000 11,500
Elections Staffing, Presidential Primary, Etc.- 40,000 10,000 41,200 10,300
Additional Contingency - - 40,000 50,000 75,000
Additions from Current Budget Cycle
1 Police Officer, starting 7/1/2021 - - 57,732 123,783 127,855
Cartegraph OMS Software - - 50,000 - -
Laserfiche Forms - - 30,000 - -
JCPP Multi-Cultural Liaison - 28,111 29,517 30,992 32,542
Banners on Mainstreet/Excelsior - - 16,000 - -
Contracted Irrigation - 10,000 10,300 10,600 11,000
Levy Required - 95,111 344,880 446,185 453,554
Total City Levy w/ Additions 15,977,936 17,529,684 19,420,847 20,595,114 20,938,587
% Increase 12.35%9.71%10.79%6.05%1.67%
Assumptions:
1. 2020 general fund reductions being proposed are delayed until 2021.
2. Tax Levy to eliminate Arts Center deficit is $60,000 in 2021, 2022 and 2023.
3. Equipment Certificates issued for wheel loader in 2021 and dump truck in 2022.
City of Hopkins
Financial Management Plan Update
Executive Summary
Proposed with Reductions
November 12, 2019
\\LISA\share\FINANCE\BUDGET 2020\11.12.19 Work Session\2019 FMP V11- November 12 Meeting (delayed).xls
2019 2020 2021 2022 2023
Final Projected
General Fund 1,274 1,359 1,499 1,580 1,669
Capital Improvements 11 8 8 8 8
Arts Center 28 36 37 37 38
Pavilion 4 32 33 33 49
Debt Service 392 466 506 517 442
Equipment Fund 25 12 9 27 27
Total City Levy per Home 1,735 1,913 2,092 2,203 2,234
$ Increase 226 179 179 111 31
Additions from January 11th Goal Setting
DWI Officer - - 8 16 17
Enterprise Software - 2 4 6 6
I.T. Intern - - 1 1 1
Elections Staffing, Presidential Primary, Etc.- 5 1 5 1
Additional Contingency - - 5 6 9
Additions from Current Budget Cycle
1 Police Officer, starting 7/1/2020 - - 7 15 16
Laserfiche Forms - - 6 - -
Cartegraph OMS Software - - 4 - -
JCPP Multi-Cultural Liaison - 3 4 4 4
Banners on Mainstreet/Excelsior - - 2 - -
Contracted Irrigation - 1 1 1 1
Additional Levy per Home - 12 43 55 56
Total Tax Levy per Home 1,735 1,925 2,135 2,258 2,290
$ Increase 226 190 210 123 32
Assumptions:
1. 2020 general fund reductions being proposed are delayed until 2021.
2. Tax Levy to eliminate Arts Center deficit is $60,000 in 2021, 2022 and 2023.
3. Equipment Certificates issued for wheel loader in 2021 and dump truck in 2022.
Taxes for Median Value Home
5 year average = $145
5 year average = $156