III.2. 2021 General Fund Budget and Tax Levy; Bishop
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: July 21, 2020
Subject: 2021 General Fund Budget and Tax Levy
_____________________________________________________________________
PURPOSE
To provide input and guidance for the 2021 General Fund budget and Tax Levy
INFORMATION
2021 General Fund Budget
Staff has been working to put together a 2021 General Fund Budget that meets the
needs of the community in uncertain times. The budget being presented includes one
new request to increase the contingency budget by $150,000 due to unknown impacts
of COVID-19 in 2021. The requested amount is being included in the General Fund, but
could be transferred to any other fund with City Council approval.
The General Fund budget is balanced. Revenues and expenditures are both set at
$16,003,837, a $642,121 or 4.18% increase from 2020. The general fund tax levy
needed to support this budget is $13,180,276, a $701,971 or 5.62% increase from
2020.
2021 Tax Levy
The 2021 Tax Levy has been prepared based on debt service needs, prior year
ERP/CIP documents and initial budgets for special revenue funds. The total tax levy is
$18,544,408, this is a $1,014,724 or 5.79% increase from 2020. Based on preliminary
tax capacity information, city taxes on a median value home ($291,000) would be
$1,929, which is a $102 or 5.59% increase from 2020.
Finance Department
FUTURE ACTION
A virtual budget engagement meeting will be held on August 17 from 6-7:30 to receive
public input on a proposed 2021 budget. Depending on input received at the public
session or at this meeting from City Council additional discussions can be scheduled.
A preliminary levy must be adopted by September 30th of each year. The preliminary
levy is planned to be approved at the September 15th City Council Meeting. The
preliminary levy will be the maximum allowable amount for 2021 and can only be
reduced.
A final levy must be adopted by December 31st of each year at or below the preliminary
levy amount. A Truth and Taxation hearing is planned for Monday, November 30th. The
final levy can be approved on December 1st or 15th.
City of Hopkins
DRAFT General Fund Revenue Budget
For the Year Ending December 31, 2021
Department 2020 Budget 2021 Budget
% Increase
(Decrease)
Property Taxes 12,564,305 13,265,276 5.58%
Intergovernmental Revenue
PERA Aid - -
Local Government Aid 734,946 734,946
Intergovernmental Revenue - Other 618,000 621,000
Total Intergovernmental Revenue 1,352,946 1,355,946 0.22%
Licenses, Permits & Fines
Court Fines & Penalties 177,750 176,000
Building Permits & Inspections 461,300 479,300
Inspection Fines & Citations 8,000 6,000
City Clerk - Business Licenses 7,000 7,000
PD - Liquor, Animal Licenses & Penalties 102,300 97,800
Fire - Licenses & Permits 1,100 300
Public Works - Licenses & Permits 19,415 19,415
Planning & Zoning - Licenses & Permits 1,000 1,000
Total Licenses, Permits & Fines 777,865 786,815 1.15%
Charges for Service
Finance Department 5,500 5,500
Assessing 3,000 3,000
Inspections 105,900 103,900
Police 35,000 35,000
Fire 10,500 10,500
Public Works 4,150 3,150
Activity Center 87,000 67,500
Total Charges for Service 251,050 228,550 -8.96%
Miscellaneous Revenue
Franchise Fees 296,200 296,200
Miscellaneous 15,250 15,250
Finance Department 1,200 2,000
Police 2,000 500
Fire 3,500 3,500
Public Works 5,300 5,300
Activity Center 32,100 14,500
Community Development 60,000 30,000
Total Miscellaneous 415,550 367,250 -11.62%
Total Revenues 15,361,716 16,003,837 4.18%
City of Hopkins
DRAFT General Fund Revenue Budget
For the Year Ending December 31, 2021
Department 2019 Budget 2020 Budget
% Increase
(Decrease)
City Council 97,630 102,095 4.57%
Administrative Services 854,893 867,311 1.45%
Finance 400,495 426,278 6.44%
Legal 175,000 200,000 14.29%
Municipal Building 404,014 397,795 -1.54%
Assessing 221,835 245,920 10.86%
City Clerk 237,513 176,656 -25.62%
Inspections 863,296 882,905 2.27%
Police 5,977,982 6,248,211 4.52%
Fire 1,483,177 1,566,528 5.62%
Public Works 3,443,017 3,550,061 3.11%
Recreation 285,279 291,339 2.12%
Activity Center 497,843 459,235 -7.76%
Planning & Zoning 222,382 235,382 5.85%
Community Development 108,160 114,921 6.25%
Tuition Reimbursement 19,200 19,200 0.00%
Contingency 50,000 200,000 300.00%
Transfer to Other Funds 20,000 20,000 0.00%
Total Expenditures 15,361,716 16,003,837 4.18%
City of Hopkins
DRAFT 2021 Tax Levy
Actual DRAFT % Increase
Purpose FY2020 FY2021 (Decrease)
General Operations
General Fund 12,479,305 13,180,276 5.62%
Capital Levy 75,000 175,000 133.33%
Arts Center 325,225 331,182 1.83%
Pavilion Fund 290,000 340,000 17.24%
Equipment Replacement 110,000 250,000 127.27%
Total General Operations 13,279,530 14,276,458 7.51%
Debt Levy 4,250,154 4,267,950 0.42%
Total Levy 17,529,684 18,544,408 5.79%
2021 Draft Budget & Tax Levy
July 21, 2020
2021 General Fund Budget
Reviewed Financial Management Plan at
January 10, 2020 Goal Setting Retreat
Budget Engagement Session held on January
21, 2020
Budget Survey conducted in March/April
2021 General Fund Budget
Will be affected by COVID-19 in some way
Budget being presented keeps the same levels
of service as in 2020
2021 General Fund Budget
Balanced Budget
Revenues = Expenditures
$16,003,837
4.18% Increase from 2020
2021 General Fund Budget
Total General Fund Levy of $13,180,276
5.6% Increase to General Fund Levy
2021 General Fund Expenditures
Additional Request
$150,000 –COVID-19 Contingency
Budgeted in the General Fund
Could be transferred to any other fund
2021 General Fund Expenditures
Budget Draft % Increase
FY2020 FY2021 (Decrease)
General Government 1,932,032 1,993,479 3.18%
Community Services 1,653,186 1,655,784 0.16%
Public Safety 7,461,159 7,814,739 4.74%
Public Works 3,443,017 3,550,061 3.11%
Recreation 783,122 750,574 -4.16%
Other 89,200 239,200 168.16%
15,361,716 16,003,837 4.18%
2021 General Fund Expenditures
2021 General Fund Revenue
Tax Levy –increased $701K or 5.6%
Collections budgeted at 100%, same as in prior
years
No budgeted increase to Local Government
Aid
Other revenue categories budgeted
conservatively
2021 General Fund Revenue
Budget Proposed % Increase
FY2019 FY2020 (Decrease)
Property Taxes 12,564,305 13,265,276 5.58%
Intergov't Revenue 1,352,946 1,355,946 0.22%
Licenses, Permits & Fines 777,865 786,815 1.15%
Charges for Service 251,050 228,550 -8.96%
Misc. Revenue 415,550 367,250 -11.62%
Total Revenue 15,361,716 16,003,837 4.18%
2021 General Fund Revenue
Draft 2021 Tax Levy
Actual DRAFT % Increase
Purpose FY2020 FY2021 (Decrease)
General Operations
General Fund 12,479,305 13,180,276 5.62%
Capital Levy 75,000 175,000 133.33%
Arts Center 325,225 331,182 1.83%
Pavilion Fund 290,000 340,000 17.24%
Equipment Replacement 110,000 250,000 127.27%
Total General Operations 13,279,530 14,276,458 7.51%
Debt Levy 4,250,154 4,267,950 0.42%
Total Levy 17,529,684 18,544,408 5.79%
City Taxes on Median Value Home
2020 Actual
Estimated Market Value as
of 1/2/19 = $276,000
City Taxes -$1,827
Increase of $92 or 5.31%
2021 Draft
Estimated Market Value as
of 1/2/20 = $291,000
City Taxes -$1,929*
Increase of $102 or 5.59%
*estimated based on preliminary tax
capacity information
Next Steps
Virtual Budget Engagement meeting on
August 17 from 6-7:30
Details will be posted at:
https://www.hopkinsmn.com/466/City-Budget-
Process
Next Steps
1st Review of ERP & CIP on August 18
1st Review of Depot, Arts Center & Pavilion
Budgets on August 18
Adopt Preliminary Budget and Tax Levy on
September 15