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2007 City of Hopkins, MN Annual Report ~ Io.~ t.;1tt ~( ~ ...., t'4l~ "" .' City of Hopkins, Minnesota Comprehensive Annual Financial Report for year ended December 31, 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF HOPKINS For The Year Ended December 31/ 2007 Prepared by: Department of Finance Christine M. Harkess, Finance Director (This page intentionally left blank) THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2007 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal from the City Manager and Finance Director Certificate of Achievement for Excellence in Financial Reporting Administrative Organization Chart City Officials ") .) 9 10 11 FINANCIAL SECTION Independent Auditors' Report Management's Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Tax Increment 2.11 - Super Valu Special Revenue Fund Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Notes to Financial Statements 13 15 28 29 30 31 32 33 34 39 40 41 42 44 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2007 Page Combining and Individual Nonmajor Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Special Revenue Funds: State Chemical Assessment Economic Development Real Estate Purchases and Sales Para-Transit Housing Rehab Parking Section 8 Housing Cable TV Depot Coffee House Art Center Tax Increment 1.2 - Entertainment Center Tax Increment 2.1 - R.L. Johnson Company Tax Increment 2.6 - Sonoma Project Tax Increment 2.9 - Oaks of Main street Tax Increment 2.10 - Business District Tax Increment 1.3 - 5th Avenue Flats Tax Increment 1.4 Marketplace & Main Combining Statement of Net Assets - Nonmajor Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor Enterprise Funds Combining Statement of Cash Flows - Nonmajor Enterprise Funds Combining Statement of Net Assets - Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds 67 75 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 101 102 103 105 106 107 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2007 STATISTICAL SECTION Financial Trends Net Assets by Component Changes in Net Assets Fund Balances, Governmental Funds Changes in Fund Balances, Governmental Funds Revenue Capacity Assessed and Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Taxpayers Property Tax Levies and Collections Debt Capacity Ratios of Outstanding Debt by Type Ratios of Net General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Pledged-Revenue Coverage Demographic and Economic Information Demographic and Economic Statistics Principal Employers Operating Information Full-time Equivalent Employees by Type Operating Indicators by Function/Program Capital Asset Statistics by Function/Program Page 109 110 112 114 116 117 118 119 120 121 122 123 124 125 126 127 128 130 (This page intentionally left blank) CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT SECTION I INTRODUCTORY SECTION (This page intentionally left blank) 2 City oj%pkins 1010 ~iTstStreetSout/i. . :J-{opl(jns, <JvfJ,[, 55343-7573 · pfione: 952-935.8474 . ~~ 952.935-1834 'Weo at.ft{ress: www.fwpl(jnsmn.com June 26, 2008 To the Honorable Mayor, Members of the Hopkins City Council and the Citizens of the City of Hopkins, Minnesota: The Comprehensive Annual Financial Report (CAFR) of the City of Hopkins, Minnesota (the City) for the fiscal year ended December 31, 2007 is hereby submitted. This report was prepared in accordance with U.S. generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB) and meets the requirements of the State Auditor's Office. This report consists of management's representations concerning the finances of the City of Hopkins. Consequently, management assumes full responsibility for both the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Hopkins has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Hopkins financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Hopkins comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Hopkins financial statements have been audited by LarsonAllen LLP, a finn of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Hopkins for the fiscal year ended December 31, 2007, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Hopkins financial statements for the fiscal year ended December 31, 2007, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this repOli. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found in the financial section of this report immediately following the report of the independent auditors. Partnering witli tlie Community to 'Enliance tfie QJLaCity of Life + Inspire + 'Eaucate + Invo{ve + Communicate + 3 Profile of the Government Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in 1893. The name was changed in 1928 to Hopkins after one of the early residents. The original territory of incorporation was three square miles, but successive annexation since 1946 has enlarged this area by one-third. In 1947, the residents of the area adopted a City Charter with a Council/Manager form of government. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the government's manager and the government's attorney. The government's manager is responsible for carrying out the policies and ordinances of the government, for overseeing day-to-day operations of the government and for appointing the heads of the government's departments. The repOli includes all funds and account groups of the City, including the City's Housing and Redevelopment Authority (HRA). The City provides a full range of services including general government, public safety, streets and highways, urban redevelopment and housing, parks and recreation, and health and human services. In addition to general municipal activities, the City provides water, sewer, storm sewer and refuse services. Low-income rental housing is a function of the HRA. The Hopkins Fire Relief Association has not met the established criteria for inclusion in the repOliing entity, and accordingly is excluded from this report. The annual budget serves as the foundation for the City of Hopkins financial planning and control. All departments of the City of Hopkins are required to submit requests for appropriation to the finance director by August of each year. The Finance Director uses these requests as the starting point for developing a proposed budget. The finance director then presents this proposed budget to the Council for review prior to September 15th. The council is required to hold public hearings on the proposed budget and to adopt a final budget no later than December 31, the close of the City of Hopkins fiscal year. The appropriated budget is prepared by fund and department. Department heads may make transfers of appropriations within a department. Transfers of appropriations between funds require approval of the City Council. Budget to actual comparisons are provided in this report for each individual governmental fund for which an annual budget has been adopted. For the General Fund this comparison is presented on pages 34-38 as part of the basic financial statements for the governmental funds. For governmental funds, other than the general fund, with annual budgets, this comparison is presented in the combining and individual fund statements and schedules subsection of this report on pages 83-99. Factors Affecting Financial Condition The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan complex, is readily accessible by the many highways and railways leading into the area. This easy access prompted steady growth for the City of Hopkins during its formative years. In response to this growth the City developed goals of working towards a planned community, with its policies directed toward sound ratios of residential, commercial and industrial components, with the current tax base approximately 76% single family residential and apartments, and 24% commercial- 4 industrial. The city's population has stabilized due to the fact that the City is largely developed and the national trend toward the lowering of persons per household. The City Council and staff along with an organized group of concerned partners determined what the Vision and the Mission of the City of Hopkins should be. Participation in this project was very high and the resulting Vision and Mission are as follows: Community Vision Creating a Spirit of Unity - Hopkins will be a community where . People are treated with respect . People participate in building culture, character and common bonds . Business growth throughout the City is supported while maintaining a vibrant City center . People feel safe, support outstanding schools and celebrate cultural heritages . People enjoy quality public services, parks and housing City of Hopkins Mission Partnering with the Community to enhance the quality of life, - Inspire, Educate, Involve, Communicate Economic Condition and Outlook Hopkins continues to show strong economic and redevelopment activities within the city. The valuation of new non-residential constmction in 2007 was $28 million dollars. This development activity has been the result of a good development market in the Hopkins area along with successful planning on the part of the city council and city staff. Significant projects completed or begun in 2007 include the following: Activity Commercial Addi ti ons/ Al terati ons: L.A. Fitness Oakridge Lofts 10 10 Mainstreet Walser Car Dealership Renovations Excelsior Crossings Phase I Valuation $ 5,000,000 $ 4,600,000 $ 1,100,000 $ 1,000,000 $40,000,000 Efforts are being made for continued development and growth for 2008 and beyond. It is anticipated that approximately $211,000,000 of constmction will also take place in the City of Hopkins during the next several years. Some anticipated projects for 2008-2011 include the following: Proi ect Atlas Site Redevelopment Excelsior Crossing Phase II and III Marketplace & Main Lofts Valuation $62,000,000 $80,000,000 $20,000,000 5 Fifth Avenue Flats Oakridge Place II Parker Office Condominiums $40,000,000 $ 9,000,000 not available Long-term financial planning The City of Hopkins has developed a strategic plan for economic development. As a part of this plan, the City of Hopkins intends to pursue various development and redevelopment efforts throughout the City. Several projects are anticipated. In 2008, projects to be constmcted include the redevelopment of Block 64 (Fifth Avenue Flats) as a mixed-use retail/condominium project, phase II of Market Place Lofts condominiums and phase II of Excelsior Crossing project which when completed will be a major corporate campus comprising three office buildings each with seven stories. These developments will have major impacts on the community. Specialized planning is taking place to ensure that these developments occur so as to benefit the community and residential neighborhoods. Major improvements continue to be made along the Hopkins section of Excelsior Boulevard (County Road 3). The first phase of improvements occurred in 1998 - 2000 between Shady Oak Road and 9th Avenue South. The second phase occurred in 2002 - 2004 between Highway 169 and Blake Road. The third phase occurred in 2007 on the segment between Highway 169 and 8th Avenue. The final phase is the section from Blake Road to Meadowbrook Road - this project has provisional county funding and is tentatively scheduled for 2010 - 2011. Significant improvements are in the planning for Shady Oak Road (County Road 61). This project is a j oint effort between Hennepin County and the Cities of Minnetonka and Hopkins. A number of neighborhood and town meetings have been held to gather input on this project that is projected to re-align the road and facilitate re-development of the area. The timing of the project is dependent on Hennepin County which has it placed in their road budget for 2011. Major Initiatives For 2007, the staff, following specific directives of the council and the manager, has been involved in a variety of proj ects throughout the year. These proj ects reflect the government's commitment to ensuring that its citizens are able to live and work in a safe environment and that the needs for services are met. In 2007 we accomplished our annual street repair and improvements, at a cost of approximately $1,358,400. The projects included the Drillane neighborhood reconstmction, lih_16th Ave N overlay, Blake Road overlay, replacing infrastmcture, roadway surface, curb and gutters, parking lot surfaces and alley reconstmction. The water department completed the wellhead protection program, and the sewer department undertook significant emergency repairs to Lift Station #7 totaling $121,535. In 2007 the water, sewer and storm sewer departments also completed in conjunction with the street improvements, infrastmcture reconstruction projects totaling $402,000. 6 Other miscellaneous improvement projects in 2007 included improvements to Central Park ballfield #2 at a cost of $22,000; reconstmction of the Park Valley shelter roof ($11,215); Hopkins Center for the Arts interior renovations ($38,875); City Hall interior renovations and HV AC replacement ($231,800) and Pavilion Ice Arena improvements ($66,100). Future projects A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in 2003, which guides future improvements and connections to regional trails. The City has established a street reconstmction and storm sewer program based on a street condition survey and storm water management program. The streets found in poor condition and future problem streets will be systematically included for repairs in the five-year Capital Improvement Plan. Cash management policies and practices The City's financial position remained strong during 2007. Cash and investment balances at year- end totaled $29,010,593, which provides the liquidity necessary to avoid short-term borrowing. The unreserved General Fund balance is available to provide funding for working capital until tax settlements are received in June and December of each year, to provide funds for unknown events and emergencies, which could have an adverse effect on the fund. A strong fund balance should be at least 50% of the "gross" General Fund property tax levy (before netting of fiscal disparities distribution) for the following year. Through sound financial management, the City has achieved this goal in 2007 as well as previous years. Cash temporarily available for short-term investment during the year was invested as authorized by Minnesota Statutes Chapter 475 and the City's Investment Policy. The City of Hopkins subscribes to the "pooled cash" concept of investing which means that all funds with cash balances participate in an investment pool. This permits some funds to be overdrawn and others to show cash balances when, in fact, the City has a cash balance. This pooled cash concept provides for investing greater amounts of money at more favorable rates. Interest earnings are then allocated on a monthly basis to the participating funds. The City's primary investment policy goal is to minimize investment market risks while realizing a competitive yield on its portfolio. The classification of the category of credit risk is shown in Note 4 to the financial statements. The City has the ability and intent to hold its investments to maturity and therefore intends to recover the full value of its investment portfolio upon maturity. The portion of the City's investments, which mature in less than one year, is 96%. During 2007, the City of 7 Hopkins earned $839,008 as compared to 2006 earnings of $892,567. The decreased earnings are attributed to the change in market conditions leading to lower interest yields. Risk Management The City continues to maintain insurance coverage at state required levels for various types of exposure - general and auto liability, worker's compensation, boiler, and employee bonds. Certificate of Achievement For .. Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial reporting to the City of Hopkins for its comprehensive annual finance report for the fiscal year ended December 31, 2006. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both U.S. generally accepted a~counting principles and applicable legal requirements, A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments We wish to express our appreciation to the Mayor and City Council for their continued interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. We also want to express our appreciation to the Finance Department staff for . their work in preparing this report. Respectfully submitted, W~. Richard B. Getschow City Manager ~P?-~ Christine M, Harkess, CPA, CGFM Finance Director 8 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Hopkins Minnesota , For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31,2006 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards iRgovernment accounting and fmancial reportmg, ~..,"",'.'/.'''' . '. ~::...:. :Gx........:.>.. . . . . .. - .. - ., ~:-- ..." '" "",' ".- .::'" -.:-.. - - '.. -'. "':." -:. ,'. ',', . :..... " . '" ". 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E CIl - CIl E r/)>'~c.u (J) ~GwE&8~ THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OFFICIALS December 31,2007 CITY COUNCIL Eugene Maxwell Kristi Halverson Bmce Rowan Rick Brausen Cheryl Y ouakim CITY MANAGER Richard B. Getschow FINANCE DIRECTOR Christine M. Harkess Term Expires Mayor 12-31-09 Councilmember 12-31-09 Councilmember 12-31-11 Councilmember 12-31-11 Councilmember 12-31-09 Appointed Appointed 11 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT SECTION II FINANCIAL SECTION 12 LarsenAlleri LLP CPAs, Consultants & Advisors www.larsonallen.com INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Hopkins, Minnesota We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hopkins, Minnesota as of and for the year ended December 31,2007, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these [mancial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the [mancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position ofthe governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hopkins, Minnesota as of December 31, 2007, and the respective changes in financial position and cash flows, where applicable, thereof and the budgetary comparison for the general fund and the special revenue fund for the year then ended in conformity with U.S. generally accepted accounting principles. As discussed in Note 14 to the financial statements, the City restated the December 31,2006 beginning net assets to correct capital asset balances. In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2008, on our consideration of the City of Hopkins, Minnesota's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. III!m INTERNATIONAL 13 LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms, Honorable Mayor and Members of the City Council The management's discussion and analysis as listed in the table of contents is not a required part of the basic financial statements but is supplemental information required by U.S, generally accepted accounting principles, We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the required supplementary information, However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Hopkins' basic financial statements, The introductory section, combining and individual fund statements and schedules, the supplementary financial information and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements, The combining and individual fund statements and schedules and the supplementary financial information have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole, The introductory section and statistical section have not been subjected to the audit procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them, /~LL? LarsonAllen LLP Minneapolis, Minnesota June 22, 2008 14 CITY OF HOPKINS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) This section of the City's comprehensive annual financial report presents a discussion and analysis of the City's financial activities during the fiscal year ended December 31, 2007. This discussion and analysis should be read in conjunction with the letter of transmittal in the introductory section of this report. Financial Highlights . The assets of the City of Hopkins exceeded liabilities by approximately $61 million. Of this amount, (unrestricted net assets), approximately $2.7 million may be used to meet the City's ongoing obligations to citizens and creditors. . The City's total net assets increased by approximately $2.4 million. . As of the close of the current fiscal year, the City of Hopkins governmental funds reported combined ending fund balances of approximately $23.5 million, an increase of approximately $7.4 million in comparison with the prior year. The increase was due primarily to bonds sold, the proceeds of which are held in escrow for the repayment of the 2002 HRA Lease Revenue Bonds. Approximately $6.2 million of fund balance is available for spending at the City's discretion (unreserved fund balance). . As of December 31,2007, unreserved fund balance for the General Fund was approximately $3.3 million, or 35% of total general fund expenditures. . The City of Hopkins total debt increased by approximately $10 million during the current fiscal year. The key factor for this increase was the sale of $9.92 million in capital improvement bonds which will be used to retire the 2002 HRA lease revenue bonds and the sale of $1. 955 million of improvement bonds for street improvement proj ects. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Hopkins basic financial statements. The City of Hopkins basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the City of Hopkins assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Hopkins is improving or deteriorating. The statement of activities presents information showing how the City net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and 15 expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Hopkins that are principally suppOlied by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Hopkins include general, public safety, highways, streets, culture, recreation, urban redevelopment, housing, health and welfare. The business-type activities of the City of Hopkins include water, sewer, refuse, storm sewer utilities, an ice arena, and a housing and redevelopment authority. The government-wide financial statements include the City of Hopkins itself, but also a legally separate Hopkins Housing and Redevelopment Authority. Although the Hopkins Housing and Redevelopment Authority is legally separate, it functions for all practical purposes as a department of the City of Hopkins, and therefore has been included as an integral part of the primary government. The government-wide financial statements can be found on pages 28-29 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Hopkins, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Hopkins can be divided in two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a City's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Hopkins maintains forty individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, Tax Increment 2-11 Super Valu District, municipal state aid constmction fund, permanent improvement revolving fund, 1999-B taxable housing improvement bonds and 2002 HRA lease revenue bonds, all of which are considered to be major funds. Data from the other thirty-four funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. 16 The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special revenue funds except for the community development block grant fund. The budgetary comparison statements have been provided for the general fund, and tax increment 2-11 Super Valu district fund and schedules are provided for other funds to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 30-39 of this report. Proprietary funds. The City of Hopkins maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Hopkins uses enterprise funds to account for its water, sewer, refuse, storm sewer utilities, the pavilion ice arena, and the housing and redevelopment authority. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Hopkins various functions. The City of Hopkins uses internal service funds to account for replacement of equipment, insurance deductibles and compensated absences. Because all of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer, and storm sewer operations, all of which are considered to be maj or funds of the City of Hopkins. Data from the other three enterprise funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major proprietary funds is provided in the form of combining statements elsewhere in this report. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is also provided in the form of combining statements elsewhere in this repOli. The basic proprietary fund financial statements can be found on pages 40-43 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 44-64 of this report. Other information. The combining statements referred to earlier in connection with non-major governmental funds, non-major proprietary funds and internal service funds are presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 65-107 of this report. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Hopkins, assets exceeded liabilities by $61,249,087 at the close of the most recent fiscal year. Almost three quarters (73%) of the City of Hopkins net assets are reflected in its investment in capital assets (e.g., land, buildings, machinery and equipment), less any related debt used to acquire those assets that are still outstanding. The City of Hopkins uses these capital assets to provide 17 services to cItIzens. The net capital assets are not available for future spending. Although the City of Hopkins investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources. City of Hopkins Net Assets December 31 Governmental Activities Business- T~l)e Activities Total 2007 2006 2007 2006 2007 2006 Assets Current and other $ 41.678.777 $ 29.430.758 $ 1.952.823 $ 2.322.206 $ 43.631.600 $ 31.752.964 assets Capital assets 45.761.120 40.049.743 19.470.160 18.992.000 65.231.280 59.041.743 Total assets 87.439.897 69.480.501 21.422.983 21.314.206 108.862.880 90.794.707 Liabilities Other liabilities 8.220.618 2.891.807 1.096.271 405.135 9.316,889 3.296,942 Long-term liabilities outstanding 34.391.904 24.235.000 3.905.000 4.380.000 38.296.904 28.615.000 Total 42.612.522 27.126.807 5.001.271 4.785.135 47.613.793 31.911.942 Net Assets Invested in capital assets. net of related debt 28.941.120 25.315.084 15.688.414 14.612.000 44.629.534 39.927.084 Restricted 13.879.837 6.189.025 0 0 13.879.837 6.189.025 Unrestricted 2.006.418 10.849.585 733.298 1.917.071 2.739.716 12.766.656 Total net $ 44.827.375 $ 42.353.694 $ 16.421.712 $ 16.529.071 $ 61.249.087 $ 58.882.765 A portion of the City of Hopkins net assets represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($2,739,716) may be used to meet the government's ongoing obligations to citizens and editors. At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its governmental and business-type activities. The City's net assets increased by $1,055,495 during the current fiscal year. Governmental and business-type activities. Governmental actIvItIes increased the City of Hopkins net assets by $1,162,854 and business-type activities decreased net assets by $107,359. Key elements of the increases and decreases are as follows: 18 City of Hopkins Changes in Net Assets For the Year Ended December 31 Governmental Activities Business- Type Activities Total 2007 2006 2007 2006 2007 2006 Revenues: Program revenues: Charges for services $ 759,728 $ 659A33 $ 4,693,030 $ 5,069,348 $ 5,452)58 $ 5,728)81 Operating grants and contributions 2J23A38 1,421,575 299,126 209,533 2,422,564 1,632,108 Capital grants and contributions 1,671,841 687,552 1,850 1,671,841 689,402 General revenues: Property taxes 8,732,711 8200,725 8,732,711 8200,725 Tax increments 1,050,60 I 990,776 1,050,60 I 990,776 Grants and contributions not restricted 564,396 579A40 564,396 579A40 Invesunentem1IllIgs 754,338 790,079 84,670 102A88 839,008 892,567 Gain on sale of capital assets 9,456 8,460 3,300 12)56 8A60 Total revenues 15,672,509 13,339,040 5,080,126 5383219 20,752,635 18,722259 Expenses: General Government 1,679,630 1,402,448 1,679,630 1,402,448 Public Safety 5,665A19 5,039235 5,665A19 5,039235 Health mId welfare 188,483 176275 188A83 176275 Highways mId Su'eets 2,870,426 2,380252 H70A26 2,380252 Urban Redevelopment mId HOUSllIg 1,903295 1,022,476 1,903295 1,022,476 Culhlre mId recreation 1,277,539 1,123,334 1271,539 U23,334 Interest on long-telm debt 1,069,863 1,282,328 1,069,863 1282,328 Water 1240,760 U 17,037 1240,760 U 17,037 Sewer 1)84,001 1,608,116 1)84,001 1,608,1 16 Stonn Sewer 416,479 408252 416A79 408252 Refuse 732239 714,389 732239 714,389 Pavilion/Ice Arena 385,062 371,845 385,062 371,845 Housing and Redevelopment Authoritv 483,944 525,588 483,944 525,588 Total expenses 14,654,655 12A26,348 5,042A85 4,745227 19,697,140 17,1 7L575 Increase in net assets betlxe transfers 1,017,854 912,692 31,641 631,992 L055A95 1,550,684 Transfers 145,000 145,000 (145,000) (145,000) Increase in net assets U6H54 1,051,692 (107,359) 492,992 1,055,495 1,550,684 Net assets - Janumv I 42,353,694 41296,002 16,529,071 16,036,079 58,882,765 57,332,081 Prior Period Adjustment 1)10,827 1)10,827 Net assets - December 31 $ 44,827,375 $ 42,353,694 $ 16A2Ul2 $ 16,529,071 $ 61249,087 $ 58,882,765 19 Governmental activities: Propeliy taxes increased in 2007 as a result of debt service levies and increased operating costs. The city received a number of program grants for specific programs in addition to state municipal aid for a major street improvement project. $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Revenues by Source - Governmental Activities Gain on sale of capital assets 0% Investment earnings 5% Charges for services 5% Tax increments 7% Capital grants and contributions 11% Grants and contributions not restricted 4% Operating grants and contributions 13% Property taxes 55% Expenses and Program Revenues - Governmental Activities o Program revenues . Expenses $0 General Government Public Safety Highways and Streets Urban Redevelopment and Housing Culture and recreation Health and welfare Interest on long- term debt 20 Business-type activities. Business-type activities had a decrease in net assets due to a decrease in charges for services as a result of lower consumption of water resulting in lower water and sewer revenues and a decrease in grants for the Housing and Redevelopment Authority (HRA). Since HRA grants are program specific, funding fluctuates from year to year depending on program needs. Revenues by Source - Business-type Activities Capital grants and contributions 0% Operating grants and contributions 6% vestment earnings 2% Charges for services 92% Expenses and Program Revenues - Business-type Activities $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Water o Program revenues . Expenses Sewer Storm Sewer Refuse Pavilion/Ice Arena Housing Authority 21 Financial Analysis of the City's Funds As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City of Hopkins governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Hopkins financing requirements. In particular, unreserved fund balance may serve as a useful measure of a City's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined ending fund balances of $23,460,745, an increase of $7,405,187 in comparison with the prior year. The key factor of the increase are bond funds received and held in escrow for the 2002 HRA Lease Revenue bonds which will be called in full in 2013. Approximately 26% of fund balance ($6,183,667) constitutes unreserved fund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to pay debt service, 2) to pay for tax increment projects and debt, 3) to provide for future rehabilitation loans, and 4) to provide for long-term receivables that are not available or spendable resources. The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal year, unreserved fund balance of the general fund was $3,304,729. This represents 74% of the general fund's total fund balance. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents approximately 35% of total general fund expenditures while total fund balance represents approximately 48% of that same amount. The fund balance of the City of Hopkins general fund increased by $141,748 during the current fiscal year. Revenues exceeded expenditures by $160,000 before transfers. Key factors in the increase are an increase in tax revenues ($325,675), increase in fees, licenses and permit that are due primarily to permit fees for commercial redevelopment ($234,328) and increases in charges for services ($99,164) which are also due primarily to plan review fees on commercial development. These increases are offset by an increase in expenditures that are a result of inflationary increases. The tax increment 2-11 Super Valu district fund has a total fund balance of $362,085, which is reserved for tax increment projects. The fund balance decreased by $2,432,637 with transfers out as a result of planned tax increment project expenses. The municipal state aid constmction fund has a total fund balance of $57,079 which is unreserved. The fund balance decreased by $163, III with transfers in as constmction projects were completed. Revenues in this fund are derived from the State of Minnesota municipal state aid fund annual allotments. Funds remain in our account until an eligible project occurs at which time funding is drawn down from Hopkins' account. The permanent improvement revolving fund has a total fund balance of $1,123,299, all of which is designated for future street improvement projects. The increase in fund balance during the current year in the permanent improvement revolving fund was $359,383. The increase was due to the bonds sold the proceeds of which will be used for projects in 2007 and 2008. 22 The 1999B Taxable Housing Improvement bond fund has a total fund balance of $360,810, all of which is reserved for the payment of debt service. The fund balance increased by $17,835 as tax revenues exceeded current debt payment requirements. The 2002 Taxable HRA Lease Revenue Bonds has a total fund balance of $9,785,120 all of which is reserved for payment of debt service. The fund balance increased by $9,210,267 as a result of bond proceeds from the 2007 A Capital Improvement Bonds which were sold to refund the 2002 HRA bonds. Bond proceeds are invested with an escrow agent who pays the current principal and interest payments until 2013 at which time the bonds will be called in full. Proprietary funds. The City of Hopkins proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the Water fund at the end of the year amounted to $36,343. The unrestricted net assets are used to offset operating losses and pay for infrastmcture improvements. The decline in net assets amounted to $134,561 and is due to operating costs exceeding operating revenues. A utility master plan was prepared in 2007 to address the funding shortage and prepare a rate stmcture that will sustain the water fund in addition to providing for future capital expenditures. The new rate stmcture which calls for modest annual increases in water rates was implemented in 2008. Unrestricted net assets of the Sewer fund at the end of the year amounted to ($8,415). The unrestricted net assets are used to pay for infrastmcture improvements. The decline in net assets amounted to $395,119 and is due to operating costs exceeding operating revenues. A utility master plan was prepared in 2007 to address the funding shortage and prepare a rate structure that will sustain the sewer fund in addition to providing for future capital expenditures. The new rate stmcture which calls for modest annual increases in sewer rates was implemented in 2008. Unrestricted net assets of the Storm Sewer fund at the end of the year amounted to $598,454. The unrestricted net assets are used to pay for infrastmcture improvements. The growth in net assets amounted to $323,470 and is due to operating revenues exceeding operating costs. General Fund Budgetary Highlights The difference between the general fund original budget and the final amended budget resulted in a budgeted increase of $15,500. The reason for the amendments was a decision by the City council to reallocate contingency funds to specific departments and to increase the Activity Center budget for a program that was not completed in the previous year. The budget changes can be summarized as follows: . Net increase of $15,500 for the Activity Center marketing mailing project. . Net increase of $7,732 in expenditures for general government activities funded with contingency funds. During the year revenues exceeded budgetary estimates by $228,972 and expenditures exceeded the budget by $68,460 the net effect being a net budgetary increase in fund balance of $157,248 after transfers which eliminated the need to draw upon existing fund balance. 23 Capital Asset and Debt Administration Capital assets. The City of Hopkins investment in capital assets for its governmental and business type activities as of December 31,2007, amounts to $65,231,280 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, roads, highways, bridges and distribution systems. Major capital asset events during the current fiscal year included the following: . Constmction in progress additions totaled $2,062,971 for infrastmcture projects. . $4.5 million of assets were transferred from constmction in progress to other improvements as infrastmcture projects were completed and put into service. . Vehicle and equipment purchases totaled $368,681. Major purchases included public works equipment, public safety vehicles and equipment City of Hopkins Capital Assets (net of depreciation) December 31 Land Buildings Infrastmcture Improvements Vehicles Equipment Constmction in progress Governmental Activities Business-Type Acth'ities Total 2007 2006 2007 2006 2007 2006 $ 5.805.711 $ 5.772.023 $ 162...1-81 $ 224...1-05 $ 5.968.192 $ 5.996...1-28 17.033...1-41 17.249.560 3.609.900 3.738.632 20.643.341 20.988.192 0 0 9.208...1-41 9,640.509 9.208.441 9,640,509 16,121,352 8.065.422 4.524.188 3.890...1-51 20.645.540 11.955.873 1.256.140 1.226.795 445...1-01 416.363 1.701.541 1.643.158 1.766.903 2.073.607 279.019 328.544 2.045.922 2...1-02.151 3.777.573 6.973.163 1.240.730 753.096 5.018.303 7.726.259 $ 45.761.120 $ 41,360.570 $ 19...1-70.160 $ 18.992.000 $ 65.231.280 $ 60.352.570 Additional information on the City of Hopkins capital assets can be found in note 5 on pages 54-55 of this report. Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt outstanding of $34,500,000. Of this amount, $12,235,000 comprises housing and redevelopment authority lease revenue debt, $3,935,000 comprises tax increment redevelopment debt, and $13,460,000 comprises general obligation and special assessment debt, all of which is backed by the full faith and credit of the government. Another $4,870,000 is special fees debt for which the government is liable in the event of default by the propeliy owners subject to the fees. The remainder of the City of Hopkins debt, $3,905,000, represents bonds secured solely by specified revenue sources (i.e., revenue bonds). 24 HRA lease revenue bonds G.O. Tax increment bonds G.O. Housing fee bonds G.O. Redevelopment bonds G.O. Capital improvement bonds G.O. Special assessment bonds Revenue bonds City of Hopkins Outstanding Debt General Obligation and Revenue Bonds December 31 Governmental Activities Business- Type Activities Total 2007 2006 2007 2006 2007 2006 $ 12,235,000 $ 12,770,000 $ - $ - $ 12,235,000 $ 12,770,000 3,935,000 4,270,000 3,935,000 4,270,000 4,870,000 5,150,000 4,870,000 5,150,000 530,000 675,000 530,000 675,000 9,920,000 9,920,000 3,010,000 1,370,000 3,010,000 1,370,000 3,905,000 4,380,000 3,905,000 4,380,000 $ 34,500,000 $ 24,235,000 $ 3,905,000 $ 4,380,000 $ 38,405,000 $ 28,615,000 The City of Hopkins total debt increased by $9,790,000 or 34% during the current fiscal year. The increase is comprised of two factors, the sale of 9,920,000 of Capital Improvement bonds the proceeds of which are being used to refund the 2002 HRA Lease Revenue bonds and the sale of $1,955,000 in Improvement bonds the proceeds of which are used for street improvement projects. General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax Increment levies and also by fees assessed against benefited properties. Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by the Water and Storm Sewer Utility Funds current revenues. City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and repayment monies are generated by the collection of special assessments and general levies. Housing and Redevelopment Authority bonds are backed by the full faith, credit and taxing power of the HRA, and repayment monies are generated by annual lease appropriations from the City. The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of estimated property market value within the City during 2007. At December 31, 2007, the debt limit for the City is $33,252,114. Of the total debt, $12,309,809 of general obligation and revenue bonds is applicable to the limit. The legal debt margin is $20,942,305. The City of Hopkins maintains an "AA-" rating from Standard & Poor's and an "AI" rating from Moody's. Additional information on the City of Hopkins long-term debt can be found in note 8 on pages 57- 60 of this report. 25 Economic Factors and Next Year's Budgets and Rates A number of factors were taken into consideration when preparing the City of Hopkins 2008 budget. Utility charges were reviewed and as a result of the utility master plan rates for the water and sewer will be increased modest amounts annually at least through 2017. The tax capacity rate decreased for the third straight year as a result of the redevelopment effOlis by the city, which increased the city's tax base allowing the taxes to increase with minimal impact on property owners. Constmction projects within the city totaling approximately $28,000,000 were to be completed in 2007 thus adding to the city's tax base. The City's population would remain constant. The City anticipated inflationary increases of about 2.5% over the modified 2007 budget. During the current fiscal year, unreserved fund balance in the general fund decreased to $3,304,729 or 35% of general fund expenditures. The Office of the State Auditor recommends unreserved fund balances not exceed 50% of general fund expenditures. The City is within that recommendation for the general fund. The unreserved fund balance is used to pay for the City's general fund obligations until it receives its property tax levy revenues in June. Requests for Information This financial repOli is designed to provide a general overview of the City of Hopkins finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Hopkins, 1010 First Street South, Hopkins, MN 55343. 26 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT BASIC FINANCIAL STATEMENTS 27 City of Hopkins Statement of Net Assets December 31, 2007 Primary Government Governmental Business-type Activities Activities Total Assets Cash and investments $ 27,305,392 $ 1,705,201 $ 29,010,593 Taxes receivable 231,294 231,294 Special assessments receivable 8,227,955 8,227,955 Accounts receivable 460,808 369,502 830,310 Intergovernmental receivable 3,284,596 3,284,596 Interest receivable 63,749 6,168 69,917 Internal balances 484,698 ( 484,698) Inventories 102,241 27,080 129,321 Prepaid items 16,944 16,944 Deferred charges - issuance costs 146,163 146,163 Long-term receivables 1,371,881 189,372 1,561,253 Land held for resale 123,254 123,254 Capital assets, non depreciable 9,583,284 1,403,211 10,986,495 Capital assets, net of accumulated depreciation 36,177,836 18,066,949 54,244,785 Total assets 87,439,897 21,422,983 108,862,880 Liabilities Accounts payable 4,746,046 870,028 5,616,074 Salaries payable 177,339 21,101 198,440 Due to other governments 641 18,637 19,278 Accrued interest payable 455,593 71,570 527,163 Compensated absences due within one year 682,159 114,935 797,094 Unearned revenue 2,158,840 2,158,840 Bonds due within one year 2,060,000 495,000 2,555,000 Non current liabilities: Bonds due in more than one year 32,331,904 3,410,000 35,741,904 Total liabilities 42,612,522 5,001,271 47,613,793 Net Assets Invested in capital assets, net of related debt 28,941,120 15,688,414 44,629,534 Restricted for: Economic development 897,214 897,214 Debt service 12,982,623 12,982,623 Unrestricted 2,006,418 733,298 2,739,716 Total net assets $ 44,827,375 $ 16,421,712 $ 61,249,087 The notes to the financial statements are an integral pm"t of this statement. 28 ~ N ~ ~ a;- N M co N eo 0> R ~ <0 a;- R ~ ~ <0 00 <0 , N L{) L{) I'- I'- 0> <0 ~ 0 0> 0 L{) I'- 0> <0 N 00 ~ 00 N N <0 I'- <0 '<t N N 0> 0> M N I'- I'- <0 M 0 I'- '<t_ '<t I'- 00 0_ ~ I'- 00 0> '<t <0 00 <0 L{) M 00- 0 0>- M 0> c:i '<t- o) 0> ..n 0- 0> 00- 0- 0- L{)- 1'-- c:i 0) M 1'-- <0- 00- M 0 M N N N 0 I'- '<t M L{) <0 M 0> L{) 00 '<t iii I'- M e L{) L{) <0 0> 0 L{) M :s !:S- '<t I'- 0_ L{) 00 ~- 0_ 00 M N_ '0 N_ M L{) '<t_ ~ 0_ 0 :s ~ 00 00 ~ c:i c:i ~ ~ I- :s :s :s :s ~ L{) <0 :s :s "C <17 <17 C .l!l Ol Ql Ql N eo 0> R ~ <0 a;- a;- 0 0 8 8 a;- N ::::s I/) Ql ;::: I/) 0> '<t <0 I'- 0 C 0. ~ N N_ O> 0>_ M_ N N <O_ M_ 0 M L{) 0 I'- Ql <( .a- I/) L{)_ M_ O_ M_ M_ 0_ O_ M_ > - .n Ql I'- <0 00 00 M 0> 0 0 '<t M L{) I'- I'- 0> Ql Ql :;:; 0 I'- '<t 00 N N 0 L{) M ~ !:S- !:S- '<t !:S- O L{)_ '<t_ o:: Z I/) 'S; ~ ~ :s :s Ql <0 <0 Gl .!: c :;:; ~ ~ () I/) I/) 'iij <( C Ql ::::s Ql OJ III <17 <17 0. 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'" en "E 0) 8 0) ~ (;i .u g " ~ 0) -5 8 en ~ g 0) ~ City of Hopkins, Mumesota 101'5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General FlUId For the Year Ended December 31,2007 Variance with final budget Budget positive Origuull Final Actual (negative) Revenues Taxes General property taxes $ 6,733,528 $ 6,478,546 $ 6,400,135 $ (78,411) Fiscal dispm'ities 824230 824230 809,184 (15,046) Total Taxes 7,557,758 7,302,776 7209,319 (93,457) Licenses and permits Busuless 134,000 134,000 192,763 58,763 Non-business 362,700 362,700 461,078 98,378 Total Licenses mld permits 496,700 496,700 653,841 157,141 Intergovenunental Mm'ket value aid credit 254,982 254,982 State grants 167,510 167,S1O 172,058 4,548 Insurance premium - police 164,C)00 164,000 172,471 8,471 Insurance premium - fire 99,500 99,500 91,987 (7,513) Federal grants LOOO LOOO 3,170 2,170 Other grants 6,000 6,C)00 (6,000) Total Intergovernmental 438,010 692,992 694,668 1,676 F ules and Il1l'feitures Comi fines 147,800 147,800 196,559 48,759 Chm'ges for services General government 13,150 13,150 34,895 21,745 Public safetv 136,500 136,S00 219,121 82,621 Public works 4,650 4,650 L476 (3,174) Recreation 60,000 60,000 42,843 (17,157) Total Chm'ges Il)!, services 214,300 214,300 298,335 84,035 Other Investment earnings 109,949 109,949 129,696 19,747 Frmlchise fees 290,C)00 290,000 288,904 (1,096) Miscellmleous 15250 15,250 27,417 12,167 Total Other 415,199 415,199 446,017 30,818 Total Revenues $ 9269,767 $ 9269,767 $ 9,498,739 $ 228,972 Expenditures General Government: Mavor and council Salm'ies mId employee benefits $ 26,497 $ 26,497 $ 26,479 $ 18 Materials, supplies and services 64,135 69,135 62,458 6,677 Total 90,632 95,632 88,937 6,695 34 City of Hopkins, Mumesota Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General FlUId For the Year Ended December 31,2007 Budget OriguuI1 Final Actual Expenditures, (continued) General Government, (continued): AdmuIistrative services Sa1m'ies mId employee benefits 455,759 455,759 447,119 Materials, supplies and services 56,366 56,366 68,086 Total 512,125 512,125 515,205 Less expenditures charged to other activities (99,000) (99,000) (99,000) Net 413,125 413,125 416,205 FinmIce Sa1m'ies mId employee benefits 310,792 310,792 317,079 Materials, supplies and services 54,434 54,434 63,038 Total 365226 365226 380,1 17 Less expenditures charged to other activities ( 198,000) ( 198,000) (197,587) Net 167226 167226 182,530 Legal Services Materials, supplies and services 126,625 126,625 146,567 Municipal Bui1duIg Sa1m'ies mId employee benefits 113,1 99 113,1 99 127,722 Materials, supplies and services 222,161 222,1 61 190,523 Capital outlay 7,600 7,600 5225 Total 342,960 342,960 323,470 Less expenditures charged to other activities (38,000) (38,000) (38,000) Net 304,960 304,960 285,470 Elections Sa1m'ies mId employee benefits 25,419 25,419 23,903 Materials, supplies and services 12,457 12,457 14,415 Capital outlay 1,652 8,026 Total 37,876 39,528 46,344 City Clerk and Reception Sa1m'ies mId employee benefits 125,933 122,711 109,127 Materials, supplies and services 20,426 20,426 18,947 Capital outlay 3,222 3,222 Total 146,359 146,359 131296 Less expenditures chm'ged to other activities (36,500) (36,500) (36,500) Net 109,859 109,859 94,796 AssessuIg Sa1m'ies mId employee benefits 67,932 67,932 70,016 Materials, supplies and services 92,687 92,687 94,638 Total 160,619 160,619 164,654 Less expendihIres chm'ged to other activities (22,000) (22,000) (22,000) Net 138,619 138,619 142,654 35 201'5 Variance with final budget positive (negative) 8,640 (11,720) (3,080) (3,080) (6287) (8,604 ) (14,891) (413) (15,304) (19,942) (14,523) 31,638 2,375 19,490 19,490 1,516 ( 1,958) (6,374) (6,816) 13,584 1,479 15,063 15,063 (2,084) (1,951 ) (4,035) (4,035) City of Hopkins, Mumesota 301'5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General FlUId For the Year Ended December 31,2007 OriguuIl Final Actual Variance with final budget positive (negative) Budget Expenditures, (continued) General Government, (continued): Plmmulg and economic development Salm'ies mId employee benefits Materials, supplies and services Total Less expendihlres chm'ged to other activities Net 98,918 98,918 97,500 1,418 37,946 37,946 31,331 6,615 136,864 136,864 128,831 8,033 (19,000) (19,000) (19,000) 117,864 117,864 109,831 8,033 1,506,786 1,513,438 1,513,334 104 Total General Government Public Safety: Police Police AdmuIistration Salaries and employee benefits Materials, supplies and services Net 334,799 334,799 377,064 (42,265) 105,723 105,723 99,415 6,308 440,522 440,522 476,479 ( 35,957) 2,128,230 2,128,230 2,154,991 (26,761) 309,207 309,207 314,932 (5,725) 4,365 4,365 4,364 1 2,441,802 2,441,802 2,474,287 (32,485) 801,845 801,845 814,421 (12,576) 196,155 197,235 179,784 17,451 3,024 3,()24 3,036 (12) 1,001,024 1,002,1 04 997,241 4,863 3,883,348 3,884,428 3,948,007 (63,579) 453,496 453,496 511,484 (57,988) 279,401 279,401 313,875 (34,474) 732,897 732,897 825,359 (92,462) 350,629 350,629 337,130 13,499 81,608 81,608 68,376 13,232 432,237 432,237 405,506 26,731 5,048,482 5,049,562 5,1 78,872 (129,310) Police Patrol mId Investigation Salaries and employee benefits Materials, supplies and services Capital outlay Total Police Services Salaries and employee benetits Materials, supplies and services Capital outlay Total Total Police Fire Salm'ies mId employee benefits Materials, supplies and services Total Inspections Salm'ies mId employee benefits Materials, supplies and services Total Total Public safety 36 City of Hopkins, Mumesota 401'5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General FlUId For the Year Ended December 31,2007 Expenditures, (continued) Health and Welfare: Inspections Salm'ies (md employee benefits Materials, supplies and services Total Total Health and welfare Highways and Streets: Public works buildulgs mId equipment services Salm'ies (md employee benefits Materials, supplies and services Total Less expenditures chm'ged to other activities Net Public Works AdmuIistration mId Engineering Salm'ies (md employee benefits Materials, supplies and services Total Less expenditures chm'ged to other activities Net Streets and Alleys Salaries and employee benefits Materials, supplies and services Capital outlay Total Less expendihrres chm'ged to other activities Net Snow mrd Ice Removal Salmies and employee benefits Materials, supplies and services Total Municipal parks and tree service: Salaries and employee benefits Materials, supplies and services Capital outlay Total Total Highways and Streets Budget Variance with final budget positive (negative) Origural Final Achml 46,868 46,868 46,651 217 21,833 21,833 21,554 279 68,701 68,701 68,205 496 68,701 68,701 68205 496 205,080 205,080 203,408 1,672 92,799 92,799 77,391 15,408 297,879 297,879 280,799 17,080 (210,000) (210,000) (252,725) 42,725 87,879 87,879 28,074 59,805 302219 302219 299204 3,015 53,944 53,944 40,808 13,136 356,163 356,163 340,012 16,151 (212,000) (212,000) ( 178,406) (33,594 ) 144,163 144,163 161,606 (17,443) 362,1 95 362,1 95 374263 (12,068) 528,054 528,054 648,687 (120,633) l6J)00 16,000 5,405 lO,595 906249 906249 1,028,355 (122,106) (1lOJ)OO) (110,000) (110,000) 796249 796249 918,355 (122,106) 82,764 82,764 106,780 (24,016) 58297 58,297 69,192 (10,895) 141,061 141,061 175,972 (34,911) 507,584 507,584 517,756 (10,172) 274,670 274,670 259,435 15235 2,000 2,000 1,372 628 784254 784254 778,563 5,691 1,953,606 1,953,606 2,062,570 ( 108,964) 37 Expenditures, (continued) Culture and Recreation: Activitv center Salm'ies (md employee benefits Materials, supplies and services Capital outlay Total Park and Recreation Salaries and employee benefits Materials, supplies and services Total Total Culture and Recreation Unallocated Materials, supplies and services Total Expenditures Other Financing Sources (D ses): Tnmsfers out: Net change in fund balance Fund Balance - Jmmarv 1 Fund Balance - December 31 City of Hopkins, Mitmesota 501'5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General FlUId For the Yem' Ended December 31,2007 Budget Variance with final budget positive (negative) Origitull Final Actual 192,959 192,959 204,093 (11,134) 103,823 111,323 97,571 13,752 8,840 16,840 9,680 7,160 305,622 321,122 311,344 9,778 61,831 61,831 39,665 22,166 158,739 158,739 157,014 1,725 220,570 220,570 196,679 23,891 526,1 92 541,692 508,023 33,669 151,000 143,268 7,735 135,533 $ 9,254,767 $ 9,270,267 $ 9,338,739 $ (68,472) (15,000) 4,320,123 (15,000) (18,252) (15,500) 141,748 4,320,123 4,320,123 4,304,623 $ 4,461,871 $ 157,248 (3,252) 157,248 $ $ 4,320,123 The notes to the financial statements are an itltegral part of this statement. 38 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 2.11- SUPERVALU SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Taxes: Tax Increments $ 350.000 $ 351,330 $ 1,330 Investment earnings 40.000 120.580 80,580 Other 60.000 45.248 (14.752) 450.000 517.158 67.158 Expenditures: Materials. supplies and services 94.153 163.530 (69.377) Capital outlay: Site Improvements 2.688.000 2.098.265 589.735 Total Expendihlres 2.782.153 2.261.795 520.358 Other Financing Sources (Uses): Transfer out for debt service (188,000) (188,000) Transfer out for tax increment (500.000) (500.000) Total Other Financing Sources (Uses) (688,000) (688.000) Net change in fund balance (2.332.153) (2.432.637) (100.484) Fund Balance - Janumy 1 2.794.722 2.794.722 Fund Balance - December 31 $ 462.569 $ 362.085 $ (100.484 ) The notes to the financial statements m'e ml integral pmi of this statement. 39 CITY OF HOP1:JNS. MINNESOTA STATEl\IENT OF NET ASSETS PROPRIETARY FUNDS December 31. 2007 Business-type Activities-Enterprise Funds Governmental Non-major Activities Water Sewer StoHn Sewer Proprietary Intemal Utility Utility Utility Funds Totals Service Funds ASSETS ClllTent assets Cash and investments $ 290.698 $ $ 899.357 $ 515.146 $ 1.705.201 $ 2.343.218 Accounts receivable 116.193 164.390 21.210 67.709 369.502 Accrued interest receivable U28 221 3.728 1.091 6.168 8,430 Advances to other fimds 137.609 Loan receivable 189.372 189.372 Inventory 16.076 9.3 71 1.633 27.080 Prepaid expenses 16.944 16.944 Total CUlTent assets 424.095 173.982 924.295 791.895 2.314.267 2,489.257 Noncurrent assets Land held I,x resale 123.254 123.254 Capital Assets. non depreciable Land 16,447 5.150 26.800 114.084 162,481 Construction in progress 121,319 278.009 567.689 273,713 1.240.730 Capital Assets. depreciable Buildings and structures 44.486 6.710.767 6.755.253 Distribution system 8.883.529 5.974.206 8.656.759 2.584 23.517.078 Machinery and equipment 384,224 374.865 21.876 740.849 1.521.814 5.583.693 Less accumulated depreciation ( 4.698.807) (3.216.191) (2,332,933) (3.479.265) (13,727.196) (3.130,581) Net nonCUlTent assets 4.75U98 3,416.039 6.940.191 4.485.986 19.593,414 2,453.112 Total Assets 5.175,293 3.590.021 7.864,486 5,277,881 21.907.681 4.942.369 LIABILITIES ClllTent Liabilities: Accounts payable 316,333 64.625 276.286 212,784 870.028 2.756 Salaries payable 6.722 4.780 604 8.995 2UOI Due to other funds 62.883 284.206 347.089 Due to other governments 909 12.900 4.828 18.637 Compensated absences payable 36.096 37.209 5.073 36.557 114,935 682.159 Accrued interest payable 27 ,692 43.878 71.570 Advance Ii'om other fi.mds 137.609 137.609 Revenue bonds - current 130.000 365.000 495.000 Total ClllTent Liabilities 517.752 182,397 690.841 684.979 2,075.969 684,915 Noncurrent Liabilities: Revenue bonds payable 1,140,000 2,270,000 3,410,000 Total noncurrent liabilities U40.000 2.270.000 3,410.000 Total Liabilities 1.657.752 182.397 2.960.841 684,979 5,485.969 684.915 NET ASSETS Invested in capital assets. net of related debt 3.48U98 3.416.039 4.305.191 4,485.986 15.688,414 2,453.112 Unrestricted 36.343 (8,415) 598,454 106,916 733.298 1.804.342 Total net assets $ 3,517,541 $ 3,407.624 $ 4.903,645 $ 4.592.902 $ 16,421,712 $ 4.257,454 The notes to the financial statements are an integral part of this statement. 40 CITY OF HOPKINS, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended December 31.2007 Business-type Activities-Enterprise Funds Govel1lmenta1 Non-major Activities Water Sewer StOlm Sewer Proprietary Internal Utility Utility Utility Funds Totals Service Funds Operating revenues: Charges for services $ 1.078,948 $ 1.409,056 $ 716,710 $ 1,361.410 $ 4,566,124 $ 320,932 Other 54,300 18,619 8,068 45,919 126,906 Total Operating Revenues 1,133248 1.427,675 724,778 1,407,329 4,693,030 320,932 Operating expenses: Cost of sales and service 803,026 1,372,590 56,795 1,142,749 3,375,160 81.618 Administration 163,643 236,553 70,1 19 178,396 648,711 Depreciation 206,364 174,858 183245 257,072 821,539 496,960 Total Operating Expenses 1,173,033 1,784,001 310,159 1,578,217 4,845,410 578,578 Operating income (loss) (39,785) (356,326) 414,619 (170,888) (152,380) (257,646) Nonoperating revenues (expenses): Investment earnings 14,651 1 1207 40,1 71 18,641 84,670 115,542 Interest/fiscal agent expense (67,727) (106,320) (174,047) Intergovel1llnenta1 grants 299,126 299,126 Gain on sale of assets 3,300 3,300 9,456 Loss on disposal of assets (23,028) (23,028) Total nonoperating revenues ( expenses) (49,776) 11207 (66,149) 294,739 190,021 124,998 Income (loss) before transfers (89,561) (345,119) 348,4 70 123,851 37,641 (132,648 ) Tnmsfers in (out) ( 45,000) (50,000) (25,()00) (25,000) (145,000) (50,000) Change in net assets (134,561 ) (395,119) 323,470 98,851 (107,359) (182,648) Total net assets - beginning 3,652,102 3,802,743 4,580,1 75 4,494,051 16,529,071 4,440,102 Total net assets - ending $ 3,517,541 $ 3,407,624 $ 4,903,645 $ 4,592,902 $ 16,421,712 $ 4,257,454 The notes to the financial statements are an integral part of this statement. 41 r-- ~VJ g E-;3: 01 ~OVJ W....:i,-., ~~z ~~~ u5 U >-< ~a~ ::.cE-~ 5(ij~ ::C""oP-,@ ... ~ <l) oE-~>-< >-< ~ P-, <l) E-E- -B U VJ S ... ,....; M "'" <l) ,D S <l) u <l) Ci -0 <l) -0 ;:: W ~ ~ 5 .~ ~ 3 E ,- F ... = .5 v 1.) ~ u ~ .~ ::; ~ t " VJ C/J -0 ;:: ;::l ... <l) C/J 'c 0.. .... <l) E ~ C/J .3 :~ u ~ <l) 0.. ?' 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'.g en :E V V 0 V 0.. 0 ('j ('j en 0.. en en .... .... u V ;>- V U V V V U V T) .... ::l g 0.. u u ;::l .... u ;::l ::l c ,...., '0 " ~ V U V g --< Ci c 0- --< Ci Ci ~ V en 0.. ~ '" Ci >- -' Z c 0 ('j u u a --< V V ~ ~ E-< City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS December 3 L 2007 SUMMARY OF SIGNIFICANT ACCOUNT POLICIES The City of Hopkins, Minnesota (the City) is a charter City, which was apprmed December 2, 1947. The City operates pursuant to applicable Minnesota laws and statutes. The gmuning body of the City is a Council - Manager form of gOyenllnent. The financial statements of the City haye been prepared in conformity with U.S. generally accepted accounting principles as applied to goyernmental units by the Goyernment Accounting Standards Board (GASB). The more significant accounting policies of the City are described below. A. REPORTING ENTITY In accordance with GASB pronouncements, the City's financial statements include all funds and depmiments of the City and its component units entities, for which the City is considered to be financially accountable. A blended component unit, although legally separate entity is, in substance, part of the City's operations and so data from this unit is combined with data of the primary goyernment. The City's blended component unit has a March 31 year-end, howeyer when blended with the City it is shown with a December 31 year-end. Blended Component Unit Housing and Redevelopment Authority in and for the City of Hopkins (HRA) The HRA was created by the City to carry out celiain redeyelopment projects and low-income rental housing. Indiyiduals on the City Council represent the gmuning board of the HRA. The housing actiyity is supported in part by federal subsidies. There is an extensiye trust agreement between the HRA and HUD regarding the facility. The HRA is included in the City's enterprise funds. Separate financials are not prepared. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The goyenllnent-wide financial statements (i.e., statement of net assets and the statement of changes in net assets) repOli information on all actiyities of the primary gOyenllnent and its component units. The intelfund selTices proyided and used are not eliminated in the process of consolidation. Goyernmental actiyities, which nonnally are supported by taxes and intergoyernmental reyenues, are repOlied separately from business-type actiyities, which rely to a significant extent on fees and charges for support. The statement of actiyities demonstrates the degree to which the direct expenses of a giyen function or segment is offset by program reyenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program reyenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, selTices, or priyileges proyided by a giyen function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program reyenues are reported instead as general reyenues. Separate financial statements are proyided for goyenllnental funds and proprietary funds. Major indiyidual goyenllnental funds and major indiyidual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The goyernment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Reyenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as reyenues in the year for which they are leyied. Grants and similar items are recognized as 44 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 reyenue as soon as all eligibility requirements haye been met. Unbilled utility selyice receiyables are recorded at year end. Goyenullental funds are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Their reyenues are recognized when susceptible to accrual (i.e., when they become measurable and m-ailable). "Measurable" means the amount of the transaction can be determined and "ayailable" means collectible with the current period or within sixty days thereafter to be used to pay liabilities of the current period. Major reyenues that are susceptible to accrual include property taxes, special assessments, intergoyernmental reyenues, charges for selyices, and illYestment earnings. Major reyenues that are not susceptible to accrual include fees and miscellaneous reyenues; such reyenues are recorded only as receiyed because they are not measurable until collected. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on generallong-tellll debt and compensated absences that are recognized when due and payable. The City repOlis the following major goyernmental funds: The general jilJ1d is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The tax increment 2-11 Super Valu districtjzlI1d accounts for resources accumulated for the repayment of debt on the re-deyelopment district tax increment project. The municipal state aid construction jilJ1d accounts for resources accumulated and payments made for street improyements funded with State of Minnesota funding through the state aid construction program. The permanent improvement revolvingjzlJ1d accounts for resources accumulated and payments made for street improyements throughout the City. The 1999B taxable housing improvement bondjilJ1d accounts for resources accumulated and payments made for principal and interest on long-term debt issued to pay for Westbrook Patio Home improyements. The owners of these town homes pay an annual fee, which in turn pays for the bond issue. The HRA Lease Revenue Bonds of2002 accounts for resources accumulated and payments made for principal and interest on long-term debt for improyements to the public works building and construction of a new fire station. This issue was adYance refunded with the Capital Improyement Bonds of 2007 A and will be called February 1. 2013 and paid in full. The City repOlis the following major proprietary funds: The water jZlI1d accounts for the operations of the City-owned water distribution system. The water bonds of 2000 are included as part of this fund since reyenues of the water fund are pledged to pay principal and interest on this bond. The sewerjilJ1d accounts for the operations of the City-owned sewer lift stations and disposal system. The storm sewer jZlJ1d accounts for the operations and improyements of the storm water drainage system. The storm water bond issues of 1999C, 2001. and 2003 are included as pati of this fund since reyenues of the storm sewer fund are pledged to pay principal atId interest on these bonds. 45 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 3 L 2007 Additionally, the City repOlis the following fund types: Special Reyenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principaL interest, and related costs. Capital Project Funds - Capital project funds are used to account for financial resources to be used for the acquisition or constlUction of major capital facilities and infrastlUcture, other than those financed by proprietary funds or special revenue funds. Proprietary Funds Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including depreciation) of prm'iding goods or services to the general public on a continuing basis, be financed or recovered primarily through user charges. Internal Selyice Funds - Internal selyice funds are used to account for the financing of goods and selyices provided by one depmiment to other depmiments of the City on a cost-reimbursement basis. Internal selyice funds are used for equipment replacement, insurance deductions mId employee benefits. Private-sector standm'ds of accounting mId finmIcial reporting issued prior to December 1, 1989, generally m'e followed in both the government-wide mId proprietary fund financial statements to the extent that those stmIdm'ds do not conflict with or contradict guidance of the GASB. GOyenllnents also have the option of following subsequent private-sector guidance for their business-type activities mId enterprise funds, subject to this same limitation. The gOyenllnent has elected not to follow subsequent private-sector guidance. As a general lUle the effect of inteIfund activity has been eliminated from the government-wide finmIcial statements, however intelfund services provided and used m'e not eliminated in the process of consolidation. Amounts reported as program revenues include 1) charges to customers or applicants for goods, selyices, or privileges provided, 2) operating grants mId contributions, mId 3) capital grants and contributions, including special assessments. Internally dedicated resources m'e reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues mId expenses from non-operating items. Operating revenues and expenses generally result from providing selyices and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City enterprise funds mId internal sen'ice funds m'e chm'ges to customers for sales and service. Operating expenses for enterprise funds mId internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues mId expenses not meeting this definition are reported as non-operating revenues mId expenses. When both restricted mId unrestricted resources are available for use, it IS the City's policy to use restricted resources first, and then use unrestricted resources as they are needed. 46 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 3 L 2007 D. CASH AND INVESTMENTS Cash balances from all funds are combined and inyested to the extent m-ailable in authorized inyestments pursuant to Minnesota Statutes (see note 4). Ealllings from such inyestments are allocated to the respectiye funds on the basis of applicable cash balance participation by each fund. I1lYestments in commercial paper with maturity date of less than one year at the date of purchase are reported at cost or amOliized cost which approximates fair yalue. Inyestments other than commercial paper are reported at fair yalue, based on quoted market price. The City accounts for its cash, cash equiyalents and inyestments in an entity-wide cash management pool, which is used essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary funds consider all inyestments to be cash equiyalents. Restricted cash and illYestments are reported separately on the financial statement. E. INTERFUND RECEIV ABLES/PAY ABLES Actiyity between funds that is representatiye of lending/borrowing arrangements and transactions between funds that are outstanding at the end of the fiscal year are referred to "due to/from other funds" Any residual balances outstanding between the gOyenllllental actiyities and business-type actiyities are reported in the gOyenllllent-wide financial statements as "intelllal balances." The non-current poliion of due to/from other funds is offset by a fund balance reserye account in applicable goyelllmental funds to indicate that they are not ayailable for appropriation and are not expendable ayailable financial resources. F. INVENTORIES AND PREP AID ITEMS All inyentories are Yalued at cost using the first-in/first-out (FIFO) method. Inyentories of gOyenllllental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to yendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both gOyenllllent-wide and fund financial statements. G. CAPITAL ASSETS Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are repOlied in the applicable goyenmlental or business-type actiyities columns in the gOyenllllent-wide financial statements and the proprietary fund financial statements. The City defines capital assets as assets with an initial, indiyidual cost of more than $1,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated capital assets are recorded at estimated fair market yalue at the date of donation. The cost of normal maintenance and repairs that do not add to the yalue of the asset or materially extend assets liyes are not capitalized. Assets not being depreciated include land and construction in progress. Buildings, equipment, and infrastructure of the City and the HRA are depreciated using the straight-line method oyer the estimated usefulliyes as follows: Buildings Mains and Lines Streets Improyements Vehicles Equipment 30 - 40 years 40 - 50 years 20 - 25 years 10 - 20 years 3 - 30 years 3 - 20 years 47 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 3 L 2007 H. COMPENSATED ABSENCES The City compensates all employees upon termination for unused yacation or flex leaye. Employees hired prior to August 1, 1998 may opt to haye sick leaye, at the rate of 8 hours for each calendar month of full-time selTice, instead of flex leaye. Employees hired prior to August 1, 1998, that haye not opted for flex leaye, shall be entitled to seyerance pay, after completion of fiye years of continuous City employment. Seyerance pay is calculated by multiplying the total number of continuous years in the City employ and/or accumulated sick leaye by the daily wage rate preyailing at date of seyerance, at one day per year of such employment, to a maximum of 20 days. Such seyerance money shall be paid in case of separation caused by death, eligible retirements, or medically attested disability preyenting an employee from pelfonning the major duties of the position or separation for non- disciplinary reasons. In addition to the pension benefits described in Note 9, the City proyides post-retirement health care benefits to employees who were hired prior to July 1, 1993 and haye been with the City for at least ten years and are either (1) age 60 years or older, or (2) eligible for full PERA retirement benefits. Employees retiring by June 30,2007 will receiye full single health and life insurance coyerage until age 65: employees retiring between July L 2007 and December 31,2009 will receiye $500 per month towards the cost of single health and life insurance until age 65: and employees retiring after December 31,2009 will receiye $15 per month times years of selTice (maximum of $500 per month) towards the cost of single health and life insurance until age 65. Currently 20 employees meet those eligibility requirements. During the year expenditures of approximately $84,163 were incurred for post- retirement health care benefits. Accumulated yacation, flex and yested seyerance pay is reported as an expense and an accmed liability as the benefits accme to employees in the goyenllnent-wide and proprietary fund financial statements. A liability for these amounts is repOlied in the goyernmental funds only if benefits haye matured as a result of employee resignations and retirements. The employee benefits internal selTice fund repOlis the goyernmental funds' liability for compensated absences on the accmal basis. I. LONG-TERM OBLIGATIONS In the goyerrunent-wide financial statements, and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable goyenllnental actiyities, business-type actiyities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs are deferred and amortized oyer the life of the bonds. Bonds payable are repOlied net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized oyer the term of the related debt. In the goyernmental fund financial statements bond premiums and discounts, as well as bond issuance costs are recognized during the current period. The face amount of debt issued is repOlied as other financing sources. Premiums receiyed on debt issuances are reported as other financing sources while discounts on debt issuances are repOlied as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds receiyed, are reported as debt selTice expenditures. 1. FUND EQUITY In the fund financial statements, goyenllnental funds report reseryations of fund balance for amounts that are not ayailable for appropriation or legally restricted by outside pmiies for use for a specific purpose. Designations of fund balance represent tentatiye management plmls that m'e subject to chmlge. 48 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 3 L 2007 K. INTERFUND TRANSACTIONS Inter-fund services provided and used are accounted for as revenues and expenditures. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. All other interfund transactions are reported as transfers. L. PROPERTY TAXES Property tax levies are set by the City Council in December of each year, and are celiified to Hennepin County (the County) for collection in the following year. In the State of Minnesota, counties act as collection agents for all propeliy taxes. The County spreads allleyies oyer assessable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal property taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County provides tax settlements to cities and other local goyemments three times a year, on or before January 25, July 5 and December 3. In the goyenunental fund financial statements property taxes are accrued and recognized as revenue for collections within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as delinquent taxes receiYable, and are fully offset by deferred revenues because they are not available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. M. CONDUIT DEBT OBLIGATIONS From time to time, the City has issued Commercial Deyelopment Reyenue Note/Bonds in accordance with the Minnesota Municipal Industrial Deyelopment Act. These obligations are issued to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The obligations are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers from the bond holder to the priYate-sector entity selTed by the debt issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the obligations. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2007, there were 10 note/bond issues outstanding, with an aggregate principal amount payable of approximately $39.5 million. N. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the repOlied amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 49 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31.2007 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS The goyenlluental fund balance sheet includes a reconciliation between fund balance - total goyenlluental funds and net assets - goyernmental actiyities as reported in the goyernment-wide statement of net assets. One element of that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Details of this difference are as follows: Bonds payable Accrued interest payable Net adjustment to reduce fund balance - total goyenlluental funds to arriye at net assets - goyernmental actiyities $ 34,391,904 455.239 $ 34.847.143 B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT- WIDE STATEMENT OF ACTIVITIES The goyenlluental fund statement of reyenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total goyernmental funds and change in net assets of goyenlluental actiyities as reported in the goyernment-wide statement of actiyities. One element of that reconciliation explains, "Goyernmental funds report capital outlays as expenditures. Howeyer, in the statement of actiyities the cost of those assets is allocated oyer their estimated useful liyes and reported as depreciation expense." The details of this difference are as follows: Capital outlay Depreciation expense Net adjustment to increase net changes in fund balances- total goyenllnental funds to arriye at changes in net assets of goyernmental actiyities $ 5.754.681 (1.161.408) $ 4.593.273 Another element of that reconciliation explains that, "the issuance of long-term debt proyides current financial resources to goyernmental funds, while the repayment of the principal of long-term debt uses financial resources of the goyernmental funds. Neither of these transactions has any effect on the net assets. Also, goyenlluental funds report the effect of issuance costs. premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of net changes." The details of these differences are as follows: Debt Issued: Issuance of general obligation bonds Issuance of special assessment bonds Less discounts Less deferred costs Add premiums Principal repayments Amortization of deferred issuance costs Prior year interest expense Accrue interest expense for current year Net adjustment to decrease net changes in fund balances- total goyernmental funds to arriye at changes in net assets of goyernmental actiyities 50 $ 9.920.000 1.955,000 (116,322) (81,108) 7,520 (1,610,000) 15,991 (473,473) 455.239 $10.072.847 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31.2007 3 STEWARDSHIP, COMPLIANCE AND ACCOUNTIBILITY A. BUDGETS AND BUDGETARY ACCOUNTING Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all goyernmental funds except the Hennepin County CDBG special reyenue fund, the debt selyice funds and the capital projects funds, which are not budgeted. A capital improyement plan is reyiewed annually by the City Council for the capital projects funds and utility funds. Howeyer, appropriations for major projects are not adopted until the actual bid award of the improyement. The appropriations are not reflected in the financial statements. All annual appropriations lapse at fiscal year end. The City follows these procedures in establishing the budgetary data reflected in the financial statements and set forth in Section 7.04 of the City Charter. 1. The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed budget and an explanatory budget message in a form and manner as prescribed by the City Charter. 2. The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer comments. 3. The Council shall adopt the tax leyy by resolution no later than a December date, which is annually established by law for the county auditor to leyy taxes. The budget shall set f01ih the total for each budgeted fund with such segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget control. 4. The City Manager is authorized to transfer budgeted amounts between depmiments within any fund: howeyer, any reyisions that alter the total expenditures of any fund must be approyed by the City Council and are limited to the amount reyenues exceed the budgets or authorize the transfer of sums from unexpended balances to other purposes. Budgeted expenditure appropriations lapse at year-end. The leyel of legal control is at the fund leyel. 5. The Council made seyeral supplemental budgetary appropriations throughout the year. The general fund budgetary increase was $15,500, which is comprised of an increase in the Actiyity Center budget for items that were budgeted in the prior year that were unable to be completed in addition to capital requests for two departments with a corresponding reduction to the amount budgeted for contingencies. B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS For the year ended December 31. 2007, actual expenditures exceeded the budgeted amounts in the following funds: General by $68,460, State Chemical Assessment Team fund by $38,206, the Section 8 fund by $6,232, the Depot Coffee House fund by $1.832, the Art Center fund by $94,645, Tax Increment District 2-1 by $15,292, Tax Increment District 2-9 fund by $345 Tax Increment 2-10 by $4,752, and the Tax Increment District 1-4 fund by $39,980. These oyer expenditures were funded by greater than anticipated reyenues of the General fund, the Section 8 fund, the Depot Coffee House fund, and the Tax Increment 2-1 fund, by ayailable fund balances in the, Tax Increment 2- 9 fund, Tax Increment 2-10 fund, and by future reyenues in the State Chemical Assessment Team fund, Art Center fund, and Tax Increment 1-4 fund. Budgets are adopted for some special reyenue fund types but not all. Excluded from the budget adoption process are funds that are completely reimbursable from the federal goyernment. The Community Deyelopment Block Grant is a non-budgeted fund. 51 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 3 L 2007 C. FUND BALANCE DEFICITS At December 3 L 2007, the following funds had deficit fund balances or net assets. These deficits will be conected through future tax levies, contributions, grants, charges for services or developer payments: State Chemical Assessment Team Art Center Tax Increment 1.2 Entertainment District Tax Increment 2.1 R.L. Johnson District Tax Increment 2.6 Sonoma District Tax Increment District 1.3 5th Avenue Flats $ 1 1.513 $ 884,477 $ 74,479 $ 68,277 $ 343,222 $ 39,530 D. NET ASSETS RESTRICTED BY ENABLING LEGISLATION The govenllnent-wide statement of net assets reports $897,214 in restricted net assets for economic development, of which $683,096 is restricted by enabling legislation. 4. DEPOSITS AND INVESTMENTS As of December 31, 2007 the City had the following investments: Investment Tvne U.S. Government Agency Securities Commercial paper Money market Deposits Total fair value Fair Value $ 8,972.125 983,934 18,940,081 114,454 $29,010,593 Interest rate risk - Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in interest rates. In accordance with its illYestment policy, the city manages its exposure to declines in fair values by holding long-term govenllnent investments to maturity and by investing in commercial paper with maturity dates of 270 days or less. At of December 31,2007 the City had the following investment maturities: Fair Value Investment maturities (in years) Less No than one 1-5 maturity Investment Type: U,S, Agencies Commercial paper Money market accounts Demand deposits $ 8,972,125 983,934 18,940,081 114,454 $ 7,962,905 983,934 $1,009,220 $ 18,940,081 114,454 $ 29,01 0,593 $ 8,946,839 $ 1,009,220 $ 19,054,535 Credit risk - Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations. Credit risk is measured using credit quality ratings of investments in debt securities as described by 52 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 nationally recognized rating agencies such as Standard & Poor's and Moody's. According to the City's inyestment policy commercial paper shall be restricted to issues, which mature in 270 days or less with a rating of A-I (Moody's), P-l (Standard & Poor's) or F-l (Fitch) among at least two of the three rating agencies. The City is authorized by Minnesota Statutes to inyest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of inyestment companies registered under the Federall1lYestment Company Act of 1940 and whose only inyestments are in securities described in (a) aboye. (c) General obligations in the State of Minnesota or any of its municipalities (d) Bankers' acceptances of United States banks eligible for purchase by the Federal ReselTe System (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturity in 270 days or less: and (f) Guaranteed inyestment contracts issued or guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies or their subsidiaries. (g) Repurchase or reyerse repurchase agreements with banks that are members of the Federal Reserye System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Gmunment securities to the Federal ReselTe Bank of New York, or certain Minnesota securities broker-dealers. The following table lists the credit quality ratings per Moody's and/or Standard and Poor's and/or Fitch of the City's inyestments at December 31. 2007. Quality Ratings Fair Value AM A-1/P-1/F-1 Unrated Investment Type: U.S. Agencies $ 8,972,125 $8,972,125 $ $ Commercial paper 983,934 983,934 Money market accounts 18,940,081 18,940,081 Demand deposits 114,454 114,454 $ 29,01 0,593 $8,972,125 $ 983,934 $19,054,535 Custodial credit risk Deposits_- For deposits, this is the risk that in the eyent of a bank failure, the City's deposits may not be returned to it. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market nlue of collateral pledged must equal 110% of the deposits not coyered by insurance or bonds (140% in the case of mOligage notes pledged). Authorized collateral includes the legal inyestments described aboye, as well as certain first mortgage notes, and certain other state or local gOyenUllent obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. At December 31, 2007 the City had no deposits that were uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the City's agent in the City's name. Inyestments - For an inyestment, this is the risk that, in the eyent of the failure of the counterpalty, the City will not be able to recoyer the nlue of its inyestments or collateral securities that aloe in the possession of an outside paliy. All inyestments held by the City aloe insured or registered or are held by the City or its agent in the City's nallle. The City has the ability and intent to hold its inyestments to maturity and therefore intends to recoyer the full carrying nlue of its inyestment portfolio upon maturity. Concentration of credit risk - The City's inyestment policy does not specifically address the issue of concentration of inyestments by issuer. 53 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 5. CAPITAL ASSETS Capital asset actiyity for the year ended December 31,2007 were as follows: Beginning Ending Balance Increases Decreases T mnsters Balance Govenmlenta1 activities: Capital assets. not being depreciated Lmd $ 5,772,023 $ $ $ 33,688 $ 5.805.711 Construction in Progress (1) 6,973,163 1,300,715 (835) (4,495,470) 3,777.573 Total not being depreciated 12,745,186 1,300,715 (835) (4,461,782) 9,583,284 Capital assets, being depreciated Buildings 19.558.687 100,433 166.800 19.825.920 Other Improvements (1) 18.063.808 4,296,422 4.294.982 26.655,212 Vehicles 3,069,759 175,095 (175,697) 3.069.157 Machinery & Equipment 4,314,279 193,586 (8,973 ) 4.498.892 Total being depreciated $ 45,006,533 $ 4,765,536 $ (184,670) $ 4.461,782 $ 54,049.181 Less accumulated depreciation: Buildings (2,309.127) (483,352) (2,792,4 79) Other Improvements (9,998,386) (535,474) ( 10.533,860) Vehicles (1,842,964) (139,252) 169.199 (1,813,017) Machinery & Equipment (2,240,672 ) (500,290) 8.973 (2,731,989) Total accumulated depreciation (16,391,149) (1,658,368 ) 178,172 (17,871,345) Total capital assets. being depreciated, net 28.615,384 3.107.168 (6,498) 4,461,782 36.177.836 Govemmenta1 activities capital assets, net $ 41.360.570 $ 4,407,883 $ (7,333) $ $ 45.761.120 (1) See note 14 regarding restatement of beginning balances. 54 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 Beginning Ending Balance Increases Decreases Tmnsters Balance Business-type Activities: Capital assets, not being depreciated Land $ 224.405 $ $ (71,994) $ 10.070 $ 162.481 Construction in Progress 753,096 762,256 (274,622 ) 1,240,730 Total not being depreciated 977.501 762,256 (71.994) (264,552) 1,403,211 Capital assets, being depreciated Buildings 6.855.541 (230,279) 77 ,265 6.702.527 Inti"astructure 18,307.839 2.758 (8,254 ) 18.302.343 Other Improvements 4,517,449 554,472 195,541 5,267.462 Vehicles 673.795 75,235 (19,478) 729.552 Machinery & Equipment 810,523 (18,262) 792,261 Total being depreciated $ 31.165,147 $ 632,465 $ (268,019) $ 264,552 $ 31,794.145 Less accumulated depreciation: Buildings (3.116,909) (182,968) 207,250 (3.092,627) Infrastmcture (8,667,330) (426,572) (9,093.902) Other Improvements (626,998) (116,276) (743,274 ) Vehicles (257.432) (46,197) 19,4 78 (284,151 ) Machinery & Equipment (481,979) (49,526) 18,263 (513,242) Total accumulated depreciation (13.150,648) (821.539) 244.991 (13,727,196) Total capital assets. being depreciated, net 18,014,499 (189,074) (23,028) 264,552 18.066,949 Business-type activities capital assets, net $ 18.992.000 $ 573.182 $ (95.022) $ $ 19.470.160 Depreciation expense was chal'ged to City functions as follows: GOyenllllental actiyities: General gOyenllllent Public safety Highways alld streets Urball redeyelopment alld housing Culture alld recreation Capital assets held by the goyernment's internal selTice funds are chal'ged to the Yal'ious functions based on their usage of the assets Total depreciation expense - gOyenllllental actiyities $ 3 1,214 261,117 734,758 3,032 130,687 496,960 $1.658.368 55 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 Business-type activities: Water Sewer Storm Sewer Refuse Pavilion/Ice arena Housing and Redevelopment Authority Total depreciation expense - business-type activities $ 206,364 174,858 183,245 45,500 61.901 149,671 $ 821.539 Constmction commitments The City has active constmction projects as of December 31,2007. The projects include street improvements. The City's commitment with contractors related to these projects is $126,478. 6. INTERFUND RECEIVABLES AND PAY ABLES The following funds had alllOunts receivable from other funds, and the respective funds had equal amounts payable to other funds at December 31.2007: Due from other funds General Non-major Governmental Total Due to other funds: Non-major governmental Se'ver Non-m(~ior proprietary Total due to other funds 707.812 62.883 284.206 1.054.901 2.240.099 2.947.911 62.883 284.206 3.295.000 2.240.099 Advances from other funds Internal Service Due to other funds: Non-major proprietary Total due to other funds 137.609 137.609 The inteIfund receivables alld payables allmv the City to borro" the resources of one fund to facilitate a project or operations of another fund. 56 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 7. INTERFUND TRANSFERS The following is a summal)' of transfers between funds as of December 31,2007: Tmnsters in Municipal Penmment HRA Lease State Aid Improvement Revenue Non-major Constmction Revolving Bonds 01'2002 governmental Total Transters out: Genem1 $ - $ - $ - $ 18,252 $ 18,252 Tax Increment District Super Va1u 688,000 688.000 Permanent Improvement Revolving 880.000 187.219 1,067,219 HRA Lease Revenue Bonds of 2002 92.136 92.136 Water 45,000 45.000 Sewer 50.000 50.000 Storm Sewer 25,000 25,000 Internal Service 50,000 50.000 Non-major govemmenta1 1,942.447 9,857.620 1,079,381 12.879.448 Non-major business-type 25,000 25.000 Total trmlSterS out $ 880.000 $ 1,942.447 $ 9.857.620 $ 2,259.988 $ 14.940.055 Intelfund transfers allow the City to allocate financial resources to debt service funds that al'e paying the general obligation debt. Non-routine transfers include the following: 1) Annual trallsfers from water, sewer and storm sewer for lease payments on new public works facility. 2) An allllual trallsfer, within non-major govenllllental funds, from the Economic Development and Cable TV funds to the AIi Center Fund totaling $147,920 to pay the original debt for building the facility. 3) A trallsfer from the 2007 A G.O. Capital Improvement Bond Debt Service Fund to the HRA Lease Revenue Bonds of 2002 fund for debt refunding, totaling $9,785,120. 4) A transfer from the 2007B G.O. Improvement Bond Fund to the Penllallent Improvement Revolving fund for debt proceeds, totaling $1,942,447. 5) A transfer of $880,000 from the Penllallent Improvement Revolving fund to the Municipal State Aid Constmction fund for the funds share of debt proceeds as reimbursement for project costs. 6) AIll1ual trallsfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments. 7) A trallsfer of $400,000 from the Economic Development fund alld $500,000 from Tax Increment 2-11 fund to Tax Increment 1-4 fund for eligible tax increment project costs. 8. LONG-TERM DEBT The City issues general obligation bonds to provide funds for the acquisition and constmction of major capital facilities. General obligation bonds have been issued for govenllllental activities. General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are selTiced by General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are issued as 20-year serial bonds. General obligation bonds currently outstanding are as follows: Purpose Govenllllental activities Governmental activities - refunding Interest Rates 2.00 - 8.0% 2.75 - 8.1% 57 Original Amount $ 22,335,000 7,578,543 Current Amount $15,655,000 3,600,000 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 AIll1ual debt service requirements to maturity for general obligation bonds are as follows: Yeal' Ending December 31 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2024 Total Govellllllental Activities Principal $ 1,195,000 1.310,000 1,245,000 1.505,000 1,200,000 5,910,000 5,865,000 1.025,000 $19,255,000 Interest $ 869,914 831.770 776,602 714,582 652,752 2,450,164 964,775 23,016 $ 7,283,575 The City also has special assessment bonds, which al'e backed by the full faith, credit alld taxing power of the City, and repayment monies are generated by the collection of special assessments and general levies. The bonds have a stated rate of interest from 1.65% - 4.8% alld al'e payable over the next ten yeal's. The bonds originally issued at $4,585,000 have a current balallce of$3,010,000. AIlllUal debt service requirements to maturity for special assessment bonds al'e as follows: Yeal' Ending December 31 2008 2009 2010 2011 2012 2013-2017 2018 Total Govenllllental Activities Principal $ 320,000 360,000 375,000 285,000 295,000 1,140,000 235,000 $ 3,010,000 Revenue bonds Interest $114,941 104,553 89,315 75,751 64,080 166,023 4,994 $ 619,657 The City also issues bonds where the govenllllent pledges income derived from the acquired or constmcted assets to pay debt selTice. Revenue bonds outstallding at yeal'-end al'e as follows: Purpose Storm sewer constmction & replacement Water tower painting, meter system replacement Storm sewer - refunding Interest Rates 2.0 - 5.0% 4.5 - 5.5% 2.75 - 3.65% Original Amount $ 2,810,000 2,060,000 1,610,000 Current Amount $ 1,980,000 655,000 1,270,000 58 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 Revenue bond debt service requirements to maturity al'e as follows: Yeal' Ending December 31 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023 Total Principal $ 495,000 505,000 530,000 320,000 330,000 1,245,000 390,000 90,000 $ 3,905,000 Public Facilitv Lease Revenue Bonds Interest $ 162)02 141,851 120,975 101,705 86,131 197,830 58,512 1,845 $ 871,051 The Housing and Redevelopment Authority in alld for the City of Hopkins, a blended component unit of the City, has issued public facility lease revenue bonds for the constmction of public works facility, a fire station, and police station improvements. The aggregate alllOunt of bonds issued totals $13,810,000. The Housing and Redevelopment Authority has entered into ground leases with the City for the lease of the facilities to the City. The leases will remain in effect until all principal and interest on the bonds hme been paid. So long as the leases are in effect, the City will make SemiallllUal lease payments on each Febmal)' 1 and August 1, in amounts sufficient to pay all principal alld interest on the bonds due on such payment date. The bonds are special obligations of the Housing and Redevelopment Authority. The bonds do not constitute a general obligation of the Housing and Redevelopment Authority or the City. It is the intent of the City to Ie,)! ad valorem taxes an alllOunt sufficient to make rental payments required under the leases. In the event the annual appropriation is not made, the bond tmstees are entitled to repossession alld the right to re-lease the buildings alld lalld. Public facility lease revenue bonds currently outstallding al'e as follows: Purpose Public Works and Fire Station Police Station improvements Interest Rates 3.0 - 5.0% 2.0 - 4.35% Original AIllount $10,760,000 3,050,000 Current Amount $9,550,000 2,685,000 AIlllUal debt service requirements to maturity are as follows: Yeal' Ending December 31 2008 2009 2010 2011 2012 2013-2017 2018-2023 2024 Total Principal $ 545,000 565,000 580,000 605,000 625,000 8,010,000 895,000 410,000 $12,235,000 Interest $ 536.318 518,829 499,285 478,148 455.331 520,254 183,678 18,003 $ 3,209,846 59 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 In 2013 bonds totaling $7,405,000 will be called and paid with proceeds from the 2007A G.O. Capital Improvement Bonds sold in 2007 and deposited with all escrow agent. Principal and interest on the 2002 HRA Lease Revenue bonds with a current balallce of $9,550,000 al'e currently being paid with funds held by the escrow agent. The City is subject to a statutOl)' limit of bonded indebtedness equaling 2.0 percent of mal'ket nlue. At December 31, 2007, the debt limit for the City is $33,252,114. Of the total debt, $12,309,809 of general obligation and revenue bonds is applicable to the limit. The legal debt mal'gin is $20,942,305. Adnnce Refunding On August 14, 2007 the City issued $9,920,000 in General Obligation Capital Improvement Bonds, Series 2007 A for the purpose of refunding the $10,760,000 HRA Lease Revenue Bonds, Series 2002A. Future debt service payments will be reduced by $120.340 with a present nlue savings of $89,973. ChallgeS in long-term liabilities Long-term liability activity for the yeal' ended December 31, 2007, was as follows: Beginning Ending Due Within Balance Additions Deductions Balance One Year Governmental Activities: Bonds payable: G.O. tax increment bonds $ 9.420.000 $ $ 615.000 $ 8.805.000 $ 510.000 General obligation bonds 675.000 9.920.000 145.000 10.450.000 595.000 Total general obligation bonds 10.095.000 9.920.000 760.000 19,255.000 1.105.000 Special assessment bonds 1.3 70.000 1.955.000 315,000 3,010,000 410,000 Public facility lease bonds 12.770.000 535.000 12.235.000 545.000 Less deferred amounts For issuance discounts (116.322) 4.042 ( 112.280) For issuance premiums 7.520 (221) 7.299 On refunding (3.634) 519 (3.115) Total bonds payable 24.23 1.366 11.766.198 1.614.340 34.391.904 2.060.000 Compensated absences 758.077 408.406 484.324 682.159 682.159 Governmental activity long-term liabilities $ 24.989.443 $ 12.174.604 $ 2.098.664 $ 35.074.063 $ 2.742.159 Business-t~l)e activities: Bonds payable: Revenue bonds $ 4.380.000 $ $ 475.000 $ 3.905.000 $ 495.000 Compensated absences 103.000 102.964 91.029 114.935 114.935 Business-type activity long-term liabilities $ 4.483.000 $ 102.964 $ 566.029 $ 4.019.935 $ 609.935 For the govenllllental activities compensated absences al'e generally liquidated by the general and special revenue funds. 60 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 9. PENSION PLAN OBLIGATIONS 1. Defined Benefit Pension Plans - Statewide A. Plall Description All full-time alld certain pali-time employees of the City of Hopkins are covered by defined benefit plallS administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) alld the Public Employees Police alld Fire Fund (PEPFF), which are cost shal'ing, multiple-employer retirement plallS. These plallS al'e established and administered in accordance with Minnesota Statutes, Chapters 353 alld 356. PERF members belong to either the Coordinated Plall or the Basic Plan. Coordinated Plan members are covered by Social Security alld Basic Plan members al'e not. All new members must paliicipate in the Coordinated Plall. All police officers, fire fighters alld peace officers that qualify for membership by statute are covered by PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits al'e established by State Statute, and vest after three yeal'S of credited service. The defined retirement benefits al'e based on a member's highest average salmy for any five successive years of allowable selTice, age, and yem's of credit at termination of selTice. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accmal formula (Method 1) or a level accmal formula (Method 2). Under Method 1, the mllluity accmal rate for a Basic Plan member is 2.2 percent of muage salm)! for each of the first 10 years of service mld 2.7 percent for each remaining year. The mllluity accmal rate for a Coordinated Plan member is 1.2 percent of average salmy for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accmal rate is 2.7 percent of average salalY for Basic Plallmembers alld 1.7 percent for Coordinated Plan members for each yeal' of service. For PEPFF members, the annuity accmal rate is 3.0 percent for each yeal' of sen'ice. For all PEPFF members and PERF members hired prior to July 1, 1989 whose mlllUity is calculated using Method 1, a full mlllUity is anilable when age plus yem's of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement allllUity is also anilable to eligible members seeking em-ly retirement. There are different types of alllluities m'ailable to members upon retirement. A single-life alllluity is a lifetime mlllUity that ceases upon the death of the retiree--no survivor alllluity is payable. There m'e also vm'ious types of joint mld survivor annuity options available ,,'hich will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a defened mllluity at retirement age. Refunds of contributions are m'ailable at any time to members who lem'e public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section al'e current prm'isions alld apply to active plml pmiicipmlts. Vested, terminated employees who al'e entitled to benefits but al'e not receiving them yet m'e bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly m'ailable finallcial report that includes finallcial statements and required supplement my information for PERF alld PEPFF. That repOli may be obtained on the web at mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes m'e established alld amended by the state legislature. The City makes annual contributions to the pension plans equal 61 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 to the amount required by state statutes. PERF Basic Plall members and Coordinated Plan members are required to contribute 9.1% alld 5.75%, respectively, of their annual covered salm)! in 2007. Contribution rates in the Coordinated Plan will increase in 2008 to 6.00%. PEPFF members are required to contribute 7.80% of their allllUal covered salm)! in 2007. That rate will increase to 8.6% in 2008. The City of Hopkins is required to contribute the following percentages of annual covered payroll: 11. 78% for Basic Plan PERF members, 6.25% for Coordinated Plan PERF members mld 11.7% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 6.5% and 12.9% respectively, effective JmlUal)' 1,2008. The City's contributions to the Public Employees Retirement Fund for the yem's ending December 31, 2007, 2006, and 2005 were $268,222, $246,903alld $220,860, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2007, 2006, alld 2005 were $222,191, $188,600 mld $169,159, respectively. The City's contributions were equal to the contractually required contributions for each yeal' as set by state statute. 2. Hopkins Fire Relief Association (HFRA) Plan Description The City contributes to the Hopkins Fire Relief Association (Association): a single employer defined benefit plan. The Association administers the plan alld issues separate finmlcial statements that cml be obtained by contacting the Association. Volunteer firefighters of the City al'e members of the Association. The plan provides for permanent and short term disability benefits, death benefits alld pensions with a set value for the mlllual withdrawal mllount. Full vesting in the plml requires a member to have sen'ed for at least 5 years, to have reached the age of 50 years and to have been a member of the Association for at least 20 yem's. These benefit provisions alld all other requirements al'e consistent with enabling statutes. Funding Policy and AIll1ual Pension Information The governing bOal'd of the Association requests changes in benefit levels and contribution requirements that must be approved by the City Council. The funding policy provides that contributions from the City and from the State of Minnesota are in amounts sufficient to accumulate assets to pay benefits when due. The City passes through state aids allocated to the plml, in accordmlce with state statutes. The annual pension information is as follows: 2007 Contributions: City State 12/31/06 Ently age normal actuarial cost method 5% Open Level dollm' - open Ten years None Not applicable $0 per year of service $ 32,166 $ 91,987 Actum'ial valuation date: Actual'ial cost method: Assumed rate of return: Actum'ial valuation period AIllortization method AIllortization period Inflation rate Projected salalY increases Post retirement benefit increases 62 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 AIlllUal Pension Benefit Cost for Past Three Years (the most current available) Year Ended 12/31/06 12/31/05 12/31/04 AIlllUal Pension Cost (APC) $ 32,166 $ 32,166 $ 31.535 % of Annual Pension Cost Contributed 100% 100% 100% Net Pension Obligation At Yeal' Ended $0 $0 $0 Schedule of Funding Progress (Required Supplemental Information) (unaudited) (the most current CfVoilable) Actual'ial Actual'ial Accmed Excess (Under) Actual'ial Value of Liability (AAL) Of Assets Funded Valuation Assets Entrv A ere Over AAL Ratio o b Date (a) (b) (a-b) (a/b) 12/31/06 $2,91 1,631 $2,309,203 $602,428 126% 12/31/05 $3,054,594 $2,775,243 $279,351 110% 12/31/04 $3,198,102 $2,692,598 $505,504 119% The estimated accmed liability of $2,309,203 at December 31, 2006 was calculated using the State of Minnesota Schedule I fOllll for lump sum pension plans. This results in positive net assets m'ailable for benefits of $602,428 as of December 31, 2006. The Hopkins Fire Department is a volunteer organization alld therefore does not have payroll to disclose. 10. REHABILITATION LOANS RECEIVABLE The City makes rehabilitation loans to residential and commercial entities within the City. Residential 10allS al'e made for 20 yeal' periods at 3% interest. A mOligage against the propeliy improved is required and City staff is responsible to follow-up any delinquent accounts. LOall repayments are made to Matrix Finallcial Sen'ices, a 10all service bureau, which chal'ges a fee of $5.95 per month per loan. Principal alld interest al'e forwarded to the City monthly with 10all collection and loan status reports. Rehabilitation loan activity is a function of the Economic Development Fund, the Hennepin County CDBG and the Housing Rehab Funds. LOallS become due in full upon sale of property. Rehabilitation loans receivable alllounted to $217.336 at December 31,2007. 11. CLAIMS AND LITIGATION The City had the usual alld customal)' types of miscellalleous claims pending at year-end, which are of a minor nature and usually all covered by insurallCe carried for that purpose. The City calTies a $1,000,000 Public Official Liability InSUrallCe policy with public entity and employee endorsement. 12. RISK MANAGEMENT The City is exposed to various risks of loss related to torts: theft of, dalllage to, alld destmction of assets: errors and omissions: injuries to employees; and natural disasters. The City paliicipates in a public entity risk pool to mitigate its exposure to these risks. Workers compensation alld property alld liability coverage are provided through a pooled self-insurallce plall with other cities. Settled claims have not exceeded inSUrallCe coverage in allY of the past three fiscal yeal's. The City pays an annual premium based on prior claims histOl)! for its workers compensation coverage. The public entity risk pool is responsible for the payment of all associated claims. The City has a $20,000 deductible per occurrence with a maximum per year out of pocket of $40,000, for its property alld liability coverage. The public entity risk pool is responsible for all losses in excess of $20,000 per occurrence and all losses occurring after the $40,000 maximum City out of pocket costs. 63 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CaNT.) December 31.2007 13. NEW ACCOUNTING PRONOUNCEMENTS In July 2004, the GASB issued Statement No. 45 Accounting and Financial Reporting by Employers fhr Postemployment Benefit Plans other than Pension Plans. This Statement, which the City will be required to adopt in the year ended December 31,2008, provides that postemployment benefits offered to employers al'e to be measured alld recognized on the full accmal basis of accounting over a period that approximates an employee's yeal'S of service. The City has not yet assessed the impact of the adoption of GASB No. 45 on its financial statements. 14. PRIOR PERIOD ADJUSTMENT During 2007, adjustments to increase beginning net assets were made to reflect capital asset corrections. The adjustment reflects an increase of $1,310,827 in infrastmcture assets which were omitted in the City's 2003 GASB 34 implementation. The following is a summal)' of the related corrections: Previously omitted construction in progress Previously omitted other improvements Govenlluenta1 Activities $ 988,301 322,526 $ 1.310.827 64 CITY OF HOPKINS, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS STATEMENTS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. Expenditures are restricted by law or administrative regulation for specified purposes. State Chemical Assessment Fund - This fund is entirely supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. Real Estate Purchases and Sales Fund - This fund records the acquisition and disposition of various properties with the proceeds used to improve city bu ild ings. Hennepin County CDBG - This fund accounts for receipt for Community Development Block Grant funds and the issuance of loans and grants for housing rehabilitation. Tax Increment Funds - These funds were established to record the use of tax increment receipts and bond proceeds as applied in various Tax Increment Districts. Paratransit Fund - Th is fund was establ ished to account for the receipt of grants and rider fees and expend itu res for transit service. Housing Rehab Fund - This fund was established to account for funds received under the Community Development Block Grant funds and Section 8. Parking Fund - This fund acquired land, improves and maintains parking lots and a parking ramp and collects month Iy mai ntenance fees from users. Section 8 Housing Fund - This fund administers the HUD Section 8 Rental Assistance Program. Cable TV Fund - This fund records the City's share of a five-city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. Depot Coffee House Fund - This fund accounts for the operations of the coffee house business and the teen center operations that are supported through grant funds. Art Center Fund - This fund accounts for the operations of the Hopkins Art Center which IS supported through leases, state aids, contributions, sales and intergovernmental transfers. 65 DEBT SERVICE FUNDS Debt Service Funds are established to finance and account for the payment of interest and principal on all general obi igation debt other than debt issued for and serviced by a governmental enterprise. Provisions are made in the City's general property tax levy for money sufficient to meet the general obligation debt. CAPITAL PROJECTS FUNDS Capital Projects Funds are established to account for the resources expended to acquire assets of a relatively permanent nature. (Special revenue and enterprise fund resources are not included in this category.) These funds evolve from the needs for special accounting for bond proceeds, grants and contributions for the acquisition of capital assets. Park Improvements Fund - This fund was established to record construction and improvement costs for park facilities. Municipal State Aid For Highway Construction Fund - This fund is used to account for the City's allocation of the state collected highway user tax. The allocation is based on population and need for construction of designated state aid streets in the City. Capital Improvement Fund - This fund accounts for funds set aside for the construction and improvement of City facility and infrastructure. 66 CITY OF HOPJ.:lNS. MINNESOTA 101'8 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31. 2007 Special Revenue Funds State Real Estate Hennepin Chemical Economic Purchases County Housing Assessment Development & Sales CDBG Para-Transit Rehab ASSETS Cash and investments $ $ 770,833 $ 91.647 $ $ 1,703 $ 830,343 Taxes receivable 456 Special Assessments receivable Accounts receivable 3,618 Rehabilitation loans receivable 120.354 96.982 Accrued interest receivable 2,688 329 2,970 Due Ii'om other n.mds 2.240,099 Due Ii'om other governments 25.141 13.992 Lont-tenll Receivable Total Assets $ 25,141 $ 3,l38.048 $ 91.976 $ 96,982 $ 15,695 $ 833.313 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 3.770 $ 1.179 $ $ $ 15.337 $ 773 Salaries payable 629 2.728 355 1.091 Accrued interest payable 12 Due to other funds 32.255 3.206 Due to other governments Unearned revenue 76.243 Total Liabilities 36,654 80,150 3.218 15,692 1.864 Fund balances: Reserved Iix: Reserved for Rehab loans receivable 120.354 93.764 Reserved for Tax Increment Districts Reserved for advance to other n.mds 2.240,099 Reserved for debt service Unreserved: Designated Iix public safety (11.513) Designated for economic development 85.000 Designated Iix construction projects Undesignated 697,445 91.976 3 746,449 Total Fund Balances (11.513) 3.057,898 91.976 93,764 3 831,449 Total Liabilities and Fund Balance $ 25.141 $ 3.138.048 $ 91.976 $ 96.982 $ 15.695 $ 833.313 67 CITY OF HOPKINS. t-..IINNESOTA 201'8 COt-..IBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31. 2007 Special Revenue Funds Depot Section 8 CoHee A.rt Parking Housing Cable TV House Center ASSETS Cash and investments $ 287,073 $ 103.538 $ 350,670 $ 134,997 $ 100 Taxes receivable Special Assessments receivable Accounts receivable 45,943 280 7,185 Rehabilitation loans receivable Accrued interest receivable 1.033 368 1.265 484 Due li'om other n.mds Due li'om other governments 1.670 Lont-tenll Receivable Total Assets $ 289,776 $ 103,906 $ 397,878 $ 135.761 $ 7,285 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 1.336 $ 242 $ 2.833 $ 16.849 $ 9.790 Salaries payable 574 2.316 293 97 6.141 Accrued interest payable Due to other funds 875.831 Due to other governments Unearned revenue 37.072 Total Liabilities 38,982 2.558 3,126 16,946 891,762 Fund balances: Reserved lix: Reserved for Rehab loans receivable Reserved for Tax Increment Districts Reserved for advance to other n.mds Reserved for debt service Unreserved: Designated Iix public salety Designated for economic development Designated Iix construction projects Undesignated 250,794 101.348 394,752 118,815 (884.477) Total Fund Balances 250.794 101.348 394,752 118,815 (884.477) Total Liabilities and Fund Balance $ 289.776 $ 103,906 $ 397.878 $ 135.761 $ 7.285 68 CITY OF HOPKINS. MINNESOTA 301'8 COt\IBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31. 2007 Special Revenue Funds Tax Tax Increment Tax Tax Increment Tax District Increment Increment District Increment Entertainment District District Oaks of District District R.L. Johnson Sonoma t\Iainstreet Business District ASSETS Cash and investments $ 136.934 $ $ 2,615 $ 293.754 $ 26.372 Taxes receivable Special Assessments receivable Accounts receivable 10,684 Rehabilitation loans receivable Accrued interest receivable 363 10 1.059 96 Due Ii'om other n.mds Due Ii'om other governments Lont-tenll Receivable 1.371.881 Total Assets $ 1,509,178 $ $ 13.309 $ 294,813 $ 26,468 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 77 $ 5,442 $ 12 $ 248 $ 22 Salaries payable Accrued interest payable 220 Due to other funds 1,583.580 62,615 356,519 Due to other governments Unearned revenue Total Liabilities 1,583.657 68,277 356,531 248 22 Fund balances: Reserved I,x: Reserved for Rehab loans receivable Reserved for Tax Increment Districts 294.565 26,446 Reserved for advance to other n.mds Reserved for debt service Unreserved: Designated Iix public safety Designated for economic development Designated Iix construction projects Undesignated (74,479) (68,277) (343,222) Total Fund Balances (74.479) (68,277) (343,222) 294.565 26,446 Total Liabilities and Fund Balance $ 1,509,178 $ $ 13.309 $ 294.813 $ 26,468 69 CITY OF HOPKINS. MINNESOTA 401'8 COt\IBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 3 L 2007 Special Revenue Funds Tax Tax Increment Increment District District Marketplace' 5th Ave Flats & Main Total ASSETS Cash and investments $ $ 5,130 $ 3.035,709 Taxes receivable 10 466 Special Assessments receivable Accounts receivable 67.710 Rehabilitation loans receivable 217.336 Accrued interest receivable 18 10.683 Due Ii'om other n.mds 2.240.099 Due Ii'om other governments 40.803 Lont-tenll Receivable 1.3 71.881 Total Assets $ 10 $ 5,148 $ 6,984,687 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 5.513 $ 2 $ 63.425 Salaries payable 14224 Accrued interest payable 122 354 Due to other funds 33.905 2.947.911 Due to other governments Unearned revenue 113.315 Total Liabilities 39.540 2 3,139.229 Fund balances: Reserved Iix: Reserved for Rehab loans receivable 214.118 Reserved for Tax Increment Districts 32L011 Reserved for advance to other n.mds 2.240.099 Reserved for debt service Unreserved: Designated Iix public safety (11.513) Designated for economic development 85.000 Designated Iix construction projects Undesignated (39.530) 5,146 996,743 Total Fund Balances (39.530) 5,146 3.845,458 Total Liabilities and Fund Balance $ 10 $ 5.148 $ 6.984.687 70 CITY OF HOPJ.:JNS. I\IINNESOTA 501'8 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31. 2007 Debt Service Funds Improvement Park and Revolving Recreational Bonds of Ren.lllding D Improvement Taxable 1992. Bonds of Housing Revolving Housing Ren.lllding 1993, Ren.lllding Bonds of Bonds of Improvement Bonds of Bonds of 1995 1999 1999A 2001 2001 ASSETS Cash and investments $ 122,835 $ 120,952 $ 197.311 $ 134,436 $ 190,301 Taxes receivable 685 1.644 4.744 Special Assessments receivable 399.382 1.727.381 Accounts receivable Rehabilitation loans receivable Accrued interest receivable 442 570 710 581 685 Due Ii'om other n.lllds Due Ii'om other governments Lont-tenll Receivable Total Assets $ 522,659 $ 122,207 $ 1.925,402 $ 136,661 $ 195.730 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 61 $ 71 $ 116 $ 70 $ 77 Salaries payable Accrued interest payable Due to other funds Due to other governments Unearned revenue 398.573 607 1.725.841 1,457 4.215 Total Liabilities 398.634 678 1. 725.957 l,527 4,292 Fund balances: Reserved Iix: Reserved for Rehab loans receivable Reserved for Tax Increment Districts Reserved for advance to other n.lllds Reserved for debt service 124.025 121.529 199,445 135.134 191,438 Unreserved: Designated Iix public safety Designated for economic development Designated Iix construction projects Undesignated Total Fund Balances 124.025 121.529 199,445 135,134 191,438 Total Liabilities and Fund Balance $ 522.659 $ 122.207 $ 1.925,402 $ 136.661 $ 195.730 71 CITY OF HOPJ.:JNS. MINNESOTA 601'8 COMBINING BALANCE SHEET NONI\IAJOR GOVERNMENTAL FUNDS December 31. 2007 Debt Service Funds Tax Tax Increment Increment Improvement Tax HRA Lease Bonds of 1996C Bonds of 1997 Revolving Increment Revemue Ren.lIlding Ren.lIlding Bonds of Bonds of Bonds of Bonds of Bonds of 2002 2002 2003 2005A 2005A ASSETS Cash and investments $ 128.532 $ 165.625 $ 397.432 $ 32.480 $ 451,508 Taxes receivable 1,560 5.844 Special Assessments receivable Accounts receivable Rehabilitation loans receivable Accrued interest receivable 567 596 511 117 1.625 Due Ii'om other n.lIlds Due Ii'om other governments Lont-tenll Receivable Total Assets $ 130,659 $ 166,221 $ 403,787 $ 32,597 $ 453-133 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 66 $ 61 $ 20 $ 16 $ 284 Salaries payable Accrued interest payable Due to other funds Due to other governments Unearned revenue 1.382 5.134 Total Liabilities 1.448 61 5J54 16 284 Fund balances: Reserved Iix: Reserved for Rehab loans receivable Reserved for Tax Increment Districts Reserved for advance to other n.lIlds Reserved for debt service 129.211 166.160 398.633 32.581 452.849 Unreserved: Designated Iix public safety Designated for economic development Designated Iix construction projects Undesignated Total Fund Balances 129.211 166,160 398.633 32.581 452.849 Total Liabilities and Fund Balance $ 130.659 $ 166.221 $ 403.787 $ 32.597 $ 453.133 72 CITY OF HOPJ.:lNS. MINNESOTA 701'8 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31. 2007 Debt Service Funds Taxable Tax Taxable Tax Increment Increment Bonds of 1996D Bonds of 1997 Improvement Ren.lllding Ren.lllding Capital Revolving Bonds of Bonds of Improvement Bonds of Bonds of 2005B 2005B 2007A 2007B Total ASSETS Cash and investments $ 108,391 $ 260,831 $ 487.200 $ 24.040 $ 2,821.874 Taxes receivable 15.583 30.060 Special Assessments receivable 1.759.467 3.886.230 Accounts receivable Rehabilitation loans receivable Accrued interest receivable 390 939 1.751 86 9,570 Due li'om other n.lllds Due li'om other governments Lont-tenll Receivable Total Assets $ 108,781 $ 2.021.237 $ 504,534 $ 24,126 $ 6.747,734 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 40 $ 148 $ 46 $ 86 $ U62 Salaries payable Accrued interest payable Due to other funds Due to other governments Unearned revenue 1.759.051 13.619 3.909.879 Total Liabilities 40 1.759.199 13,665 86 3,911.041 Fund balances: Reserved lix: Reserved for Rehab loans receivable Reserved for Tax Increment Districts Reserved for advance to other n.lllds Reserved for debt service 108.741 262.038 490.869 24.040 2.836.693 Unreserved: Designated Iix public safety Designated for economic development Designated Iix construction projects Undesignated Total Fund Balances 108,741 262.038 490.869 24.040 2,836.693 Total Liabilities and Fund Balance $ 108.781 $ 2.021.237 $ 504.534 $ 24.126 $ 6.74 7. 734 73 CITY OF HOPJ.:.INS.I\IINNESOTA 801'8 COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31. 2007 Capital Project Funds Total Capital Non-major Park Improvement Governmental Improvements Fund Total Funds ASSETS Cash and investments $ 432,880 $ 197.575 $ 630.455 $ 6.488,038 Taxes receivable 1.144 1.144 31.670 Special Assessments receivable 3.886.230 Accounts receivable 67.710 Rehabilitation loans receivable 217.336 Accrued interest receivable U64 841 2.405 22.658 Due Ii'om other n.mds 2.240.099 Due Ii'om other governments 40.803 Lont-tenll Receivable 1371.881 Total Assets $ 434.444 $ 199,560 $ 634,004 $ 14.366.425 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 328 $ 4.340 $ 4.668 $ 69.255 Salaries payable 14.224 Accrued interest payable 354 Due to other funds 2,947,911 Due to other governments Unearned revenue 1.006 1.006 4.024.200 Total Liabilities 328 5.346 5,674 7,055.944 Fund balances: Reserved Iix: Reserved for Rehab loans receivable 214.118 Reserved for Tax Increment Districts 321.011 Reserved for advance to other n.mds 2.240.099 Reserved for debt service 2.836.693 Unreserved: Designated Iix public safety (lU13) Designated for economic development 85.000 Designated Iix constmction projects 194.214 194.214 194.214 Undesignated 434.1 16 434.1 16 1.430.859 Total Fund Balances 434,116 194.214 628.330 7310.481 Total Liabilities and Fund Balance $ 434.444 $ 199,560 $ 634.004 $ 14.366.425 74 CITY OF HOPKINS. MINNESOTA 101'8 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 Special Revenue Funds State Real Estate Hellllepin Chemical Economic Purchases Countv Assessment Development & Sales CDBG Pam- Tnmsit Revenues Property tax $ $ 19,745 $ $ $ Tax increment Special assessments Intergovemmenta1 revenue 77 ,866 5.000 13.677 83.793 Fees, licenses and pennits Charges for services 3.700 13.866 Fines Investment eamings 64,524 3,295 Other 18.865 Total Revenues 77 .866 108.134 6.995 13.677 97.659 Expenditures CUlTent: Genem1 govenllllent Public safety 68,657 Health mId welfare 116.336 Highways mId streets UrbmI redevelopment mId housing 183,967 18,015 Recreation Capital outlay 14,549 Debt Service: Principal retirement Interest and fiscal tees 132 Bond issuance costs Total Expendihlres 83,206 183.967 18,147 116.336 Excess (deficiency) of revenues over (under) expenditures (5.340) (75.833) 6.995 (4,470) ( 18.677) Other Financing Sources (Uses): Tnmsters in 2.252 16.000 Tnmsters out (461,000) Refunding bonds issued Improvement bonds issued Discount on refunding debt Premium on improvement debt Total Other Financing Sources (Uses) 2.252 ( 461.000) 16.000 Net change in fund ba1mIces (3,088) (536.833) 6.995 (4,470) (2.677) Fund Balance (Deticit) - January 1 (8,425) 3,594,731 84,981 98.234 2,680 Fund Balance (Deficit) - December 31 $ (11,513) $ 3.057.898 $ 91.976 $ 93.764 $ 3 75 CITY OF HOPKINS. MINNESOTA 201'8 COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Yem' Ended December 31,2007 Special Revenue Funds Depot Housing Section 8 CoHee Rehab Parking Housing Cable TV House Revenues Property tax $ $ $ $ $ Tax increment Special assessments Intergovemmenta1 revenue 118.152 1.200 Fees, licenses and pennits 226.602 Charges for services 58.315 61.151 Fines 18.492 Investment eamings 41,157 13.799 4,886 17.419 4.514 Other 64.225 Total Revenues 41.157 90.606 123.038 244.021 131,090 Expenditures CUlTent: Genem1 govenmlent 82.676 Public safety 50.673 Health mId welfare Highways mId streets 31.254 UrbmI redevelopment mId housing 71,483 120,331 Recreation 93,923 Capital outlay 13.466 7,774 Debt Service: Principal retirement Interest and fiscal tees Bond issuance costs Total Expendihlres 71,483 95.393 120.331 82.676 10 1.697 Excess (deficiency) of revenues over (under) expenditures (30.326) (4,787) 2.707 161.345 29.393 Other Financing Sources (Uses): Tnmsters in Tnmsters out (86,920) Refunding bonds issued Improvement bonds issued Discount on refunding debt Premium on improvement debt Total Other Financing Sources (Uses) (86,920) Net change in fund ba1mIces (30.326) (4,787) 2.707 74.425 29.393 Fund Balance (Deticit) - January 1 861,775 255,581 98,641 320.327 89,422 Fund Balance (Deficit) - December 31 $ 831.449 $ 250.794 $ 10 1.348 $ 394.752 $ 118.815 76 CITY OF HOPKINS. MINNESOTA 301'8 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 Special Revenue Funds Tax Tax Increment Tax Tax Increment District Increment Increment District Ali Entertainment District District Oaks of Center District R.L. Jo1111son Sonoma Mainstreet Revenues Propeliy tax $ $ $ $ $ Tax increment 48,663 407.516 8.340 141,346 Special assessments Intergovemmenta1 revenue 50,000 10,559 Fees, licenses and pennits Charges for services 293.998 Fines Investment eamings 838 3.968 660 13,099 Other 430 10.684 Total Revenues 345.266 52.631 407.516 19.684 165.004 Expenditures CUlTent: Genem1 govenllllent Public safety Health mId welfare Highways mId streets UrbmI redevelopment mId housing 1,195 204.274 943 4,301 Recreation 521,812 Capital outlay 1,525 75,000 Debt Service: Principal retirement Interest and fiscal tees 9,949 859 Bond issuance costs Total Expendihlres 533,286 76.195 205,133 943 4.301 Excess (deficiency) of revenues over (under) expenditures (188,020) (23.564) 202.383 18.741 160.703 Other Financing Sources (Uses): Tnmsters in 147.920 Tnmsters out (215,000) ( 134,000) Refunding bonds issued Improvement bonds issued Discount on refunding debt Premium on improvement debt Total Other Financing Sources (Uses) 147.920 (215,000) (134,000) Net change in fund ba1mIces (40,1 00) (23.564) (12,617) 18.741 26.703 Fund Balance (Deticit) - January 1 (844,377) (50,915) ( 55,660) (361,963 ) 267,862 Fund Balance (Deficit) - December 31 $ (884,4 77) $ (74.4 79) $ (68,277) $ (343.222 ) $ 294,565 77 CITY OF HOPKINS. MINNESOTA 401'8 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 Special Revenue Funds Tax Tax Tax Increment Increment Increment District 5th Avenue Marketplace Business District Flats & Main Total Revenues Property tax $ $ $ $ 19,745 Tax increment 87,968 386 5,052 699.271 Special assessments Intergovemmenta1 revenue 360.247 Fees, licenses and pennits 226.602 Charges for services 431,030 Fines 18.492 Investment eamings 1.082 114 169.355 Other 94.204 Total Revenues 89.050 386 5.166 2.018.946 Expenditures CUlTent: Genem1 govenmlent 82.676 Public safety 119.330 Health mId welfare 116.336 Highways mId streets 31.254 UrbmI redevelopment mId housing 84,702 34,370 900,020 1,623.601 Recreation 615.735 Capital outlay 112.314 Debt Service: Principal retirement Interest and fiscal tees 591 11.531 Bond issuance costs Total Expendihlres 84,702 34,961 900.020 2,712,777 Excess (deficiency) of revenues over (under) expenditures 4.348 (34,575) (894,854 ) (693.831 ) Other Financing Sources (Uses): Tnmsters in 900,000 1,066.172 Tnmsters out (896,920) Refunding bonds issued Improvement bonds issued Discount on refunding debt Premium on improvement debt Total Other Financing Sources (Uses) 900.000 169.252 Net change in fund ba1mIces 4.348 (34.575) 5.146 (524,579) Fund Balance (Deticit) - January 1 22.098 (4,955) 4.370,037 Fund Balance (Deficit) - December 31 $ 26.446 $ (39,530) $ 5.146 $ 3.845.458 78 CITY OF HOPKINS. MINNESOTA 501'8 COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Yem' Ended December 31,2007 Debt Service Funds Improvement Park and Revolving Recreational Bonds of Refunding D Improvement Taxable 1992. Bonds of Housing Revolving Housing Refunding 1993, Refunding Bonds of Bonds of Improvement Bonds of Bonds of 1995 1999 1999A 2001 2001 Revenues Property tax $ $ 25,719 $ $ 62.840 $ 173,097 Tax increment Special assessments 97,466 141.060 Intergovemmenta1 revenue Fees, licenses and pennits Charges for services Fines Investment eamings 2,957 3.419 5,750 3.181 3.481 Other Total Revenues 100.423 29.138 146.810 66.021 176.578 Expenditures CUlTent: Genem1 govenmlent 61 71 398 70 77 Public safety Health mId welfare Highways mId streets UrbmI redevelopment mId housing Recreation Capital outlay Debt Service: Principal retirement 65.000 90.000 55.000 135.000 145.000 Interest and fiscal tees 29.358 16.925 83.165 9.860 20.464 Bond issuance costs Total Expendihlres 94,419 106.996 138.563 144,930 165.541 Excess (deficiency) of revenues over (under) expenditures 6.004 (77.858) 8.247 (78,909) 11.037 Other Financing Sources (Uses): Tnmsters in 75.000 54.000 Tnmsters out Refunding bonds issued Improvement bonds issued Discount on refunding debt Premium on improvement debt Total Other Financing Sources (Uses) 75.000 54.000 Net change in fund ba1mIces 6.004 (2,858) 8,247 (24,909) 11,037 Fund Balance (Deticit) - January 1 118,021 124,387 191,198 160.043 180.401 Fund Balance (Deficit) - December 31 $ 124.025 $ 121.529 $ 199.445 $ 135.134 $ 191.438 79 CITY OF HOPKINS. MINNESOTA 601'8 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 Debt Service Funds Tax Tax Increment Increment Improvement Tax HRA Lease Bonds of 1996C Bonds of 1997 Revolving Increment Revenue Refunding Refunding Bonds of Bonds of Bonds of Bonds of Bonds of 2002 2002 2003 2005A 2005A Revenues Property tax $ 58,358 $ $ 232.438 $ $ Tax increment Special assessments Intergovemmenta1 revenue Fees, licenses and pennits Charges for services Fines Investment eamings 3,095 2.035 533 3.494 19.343 Other Total Revenues 61.453 2.035 232.971 3.494 19.343 Expenditures CUlTent: Genem1 govenmlent 66 61 20 16 284 Public safety Health mId welfare Highways mId streets UrbmI redevelopment mId housing Recreation Capital outlay Debt Service: Principal retirement 90.000 90.000 120.000 165.000 Interest and fiscal tees 23.810 94.204 101.056 17.169 36.081 Bond issuance costs Total Expendihlres 113,876 184.265 221,076 17,185 201.365 Excess (deficiency) of revenues over (under) expenditures (52,423) (182.230) 11.895 (13,691) (182,022) Other Financing Sources (Uses): Tnmsters in 58.219 188.000 254,961 28.000 215.000 Tnmsters out Refunding bonds issued Improvement bonds issued Discount on refunding debt Premium on improvement debt Total Other Financing Sources (Uses) 58.219 188.000 254.961 28.000 215.000 Net change in fund ba1mIces 5.796 5.770 266.856 14.309 32,978 Fund Balance (Deticit) - January 1 123,415 160,390 131,777 18.2 72 419.871 Fund Balance (Deficit) - December 31 $ 129.211 $ 166.160 $ 398.633 $ 32,581 $ 452.849 80 CITY OF HOPKINS, MINNESOTA 701'8 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 Debt Service Funds Taxable Tax Taxable Tax Increment Increment Bonds of 1996D Bonds of 1997 Improvement Refunding Refunding Capital Revolving Improvement Bonds of Bonds of Bonds of Bonds of 2005B 2005B 2007A 2007B Total Revenues Property tax $ $ $ 321,085 $ $ 873,537 Tax increment Special assessments 169.422 407,948 Intergovemmenta1 revenue Fees, licenses and pennits Charges for services Fines Investment eamings 4,609 14.1 0 1 4.455 24.506 94,959 Other Total Revenues 4.609 183,523 325.540 24.506 1.376.444 Expenditures CUlTent: Genem1 govenllllent 40 580 46 266 2.056 Public safety Health mId welfare Highways mId streets UrbmI redevelopment mId housing Recreation Capital outlay Debt Service: Principal retirement 80.000 70.000 1.105.000 Interest and fiscal tees 19.336 60.449 200 200 512.277 Bond issuance costs 61,036 20,073 81.109 Total Expendihlres 99.376 131.029 61.282 20.539 1,700,442 Excess (deficiency) of revenues over (under) expenditures (94,767) 52.494 264.258 3.967 (323,998) Other Financing Sources (Uses): Tnmsters in 106,000 164.636 1.143.816 Tnmsters out (9,785,120) (1,942,447) (11,727,567) Refunding bonds issued 9,920,000 9,920,000 Improvement bonds issued 1,955,000 1.955,000 Discount on refunding debt (72,905) (72,905) Premium on improvement debt 7.520 7,520 Total Other Financing Sources (Uses) 106.000 226.611 20.073 1.225.864 Net change in fund ba1mIces 11.233 52.494 490,869 24.040 901.866 Fund Balance (Deticit) - January 1 97,508 209,544 1,934,827 Fund Balance (Deficit) - December 31 $ 108.741 $ 262.038 $ 490.869 $ 24.040 $ 2.836.693 81 CITY OF HOPKINS. MINNESOTA 801'8 COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31. 2007 Capital Project Funds Total Capital Non-major Park Improvement Govenllnenta1 Improvements Fund Total Funds Revenues Property tax $ $ 49.083 $ 49,083 $ 942.365 Tax increment 699.271 Special assessments 407.948 Intergovenllnenta1 revenue 360.247 Fees, licenses and permits 226.602 Chm'ges for services 431.030 Fines 18.492 Investment earnings 16.854 26.765 43.619 307.933 Other 395.430 395.430 489.634 Total Revenues 412.284 75.848 488.132 3.883.522 Expenditmes CUlTent: Genem1 govenllnent 84.732 Public satetv 119.330 Health and welfare 116.336 Highways and streets 31.254 Urban redevelopment and housing 1.623,601 Recreation 8,813 8,813 624.548 Capital outlay 40.136 339.807 379.943 492.257 Debt Service: Principal retirement 1.105.000 Interest mId fiscal tees 523.808 Bond issuance costs 81.109 Total Expenditmes 48,949 339,807 388,756 4.801,975 Excess (deficiency) of revenues over (under) expenditures 363.335 (263,959) 99.376 (918.453) Other Financing Sources (Uses): T mnsters in 50.000 50.000 2,259,988 Tmnsters out (254,961 ) (254,961 ) (12,879.448) Refunding bonds issued 9,920,000 Improvement bonds issued 1,955,000 Discount on refunding debt (72.905) Premium on improvement debt 7,520 Total Other Financing Sources (Uses) (204,961 ) (204.961 ) 1.190.155 Net cllffiIge in fund balances 363.335 (468,920) (105.585) 271.702 Fund Ba1mIce (Deficit) - Jmmary 1 70.781 663.134 733.915 7,038,779 Fund Ba1mIce (Deficit) - December 31 $ 434.116 $ 194.214 $ 628.330 $ 7.310.481 82 CITY OF HOPKINS. MINNESOTA STATE CHEMICAL ASSESSMENT TEAM FUND SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Intergovenlluenta1 revenue: Federal grant $ $ 23,425 $ 23.425 State grant 45,000 54,441 9.441 45.000 77.866 32.866 Expenditures: Salaries and employee benefits 23.167 45.706 (22.539) Materials, supplies and services 18.833 22.951 (4.118) Capital outlay 3.000 l4.549 01.549) Total Expenditures 45.000 83.206 (38.206) Other Financing Sources: Transfer from the General Fund 2.252 2.252 Net change in fund balance (3.088) (3.088) Fund Balance - January 1 (8.425) (8,425) Fund Balance - December 31 $ (8.425) $ 01.513) $ (3.088) 83 CITY OF HOPKINS. MINNESOTA ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: General property taxes $ 15.000 $ 19.745 $ 4.745 Intergovenlluenta1 revenue: County grant 5.000 Investment earnings 20.000 64.524 44.524 Other 5.000 18.865 13.865 Total Revenues 40.000 108.134 63.134 Expenditures: Salaries and employee benefits 142.698 153.446 (10.748) Materials, supplies and services 120.695 68.021 52.674 Total 263.393 221.467 41.926 Less expenditures charged to other activities (37.500) (37.500) Net 225.893 183.967 41.926 Other Financing Sources (Uses): Transfer to Tax Increment ( 400,000) (400,000) Transfer to Ali Center Fund (61.000) (61.000) Total Other Financing Sources (Uses) (461.000) (461.000) Net change in fund balance (646,893) (536,833) 110.060 Fund Balance - January 1 3.594.731 3.594.731 Fund Balance - December 31 $ 2.947.838 $ 3.057.898 $ 110.060 84 CITY OF HOPKINS. MINNESOTA REAL ESTATE PURCHASES AND SALES SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positiye Budget Actual (negatiYe) Revenues: Charges for seryices $ 3.700 $ 3.700 $ Investment earnings 2.100 3.295 1.195 Total Revenues 5.800 6.995 1.195 Expenditures: Net change in fund balance 5.800 6.995 1.195 Fund Balance - January 1 84.981 84.981 Fund Balance - December 31 $ 90.781 $ 91.976 $ 1.195 85 CITY OF HOPKINS. MINNESOTA PARA-TRANSIT SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Intergovernmental: State grant (Para-Transit) $ 83.870 $ 83.793 $ (77) Charges for services 12.000 13.866 1.866 Total Revenues 95.870 97.659 1.789 Expenditures: Salaries and employee benefits 17.462 18.064 (602) Materials. supplies and selvices 99.461 98.272 1.189 Total Expenditures 116.923 116.336 587 Other Financing Sources: Transfer from the General Fund 21.053 16.000 (5.053) Net change in fund balance (2.677) (2.677) Fund Balance - January 1 2.680 2.680 Fund Balance - December 31 $ 2.680 $ 3 $ (2.677) 86 CITY OF HOPKINS. MINNESOTA HOUSING REHAB SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Investment earnings $ 28.000 $ 41.157 $ 13.157 Other 100 (100) Total Revenues 28.100 41.157 13.057 Expenditures: Salaries and employee benefits 60.895 52.106 8.789 Materials. supplies and services 25.608 19.377 6.231 Total Expenditures 86.503 71.483 15.020 Net change in fund balance (58.403) (30.326) 28.077 Fund Balance - January 1 861.775 861.775 Fund Balance - December 31 $ 803.372 $ 831.449 $ 28.077 87 CITY OF HOPKINS. MINNESOTA PARKING SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Achla1 (negatiye) Revenues: C011l1 fines $ 40.000 $ 18.492 $ (21.508) Charges for services 54.000 58.315 4.315 I1lYestment earnings 7.500 13.799 6.299 Total Reyenues 101.500 90.606 (10.894 ) Expendihlres: Salaries and employee benefits 45.577 42.051 3.526 Materials. supplies and selvices 50.827 39.876 10.951 Capital outlay 11.600 13 .466 ( 1.866) Total Expenditures 108.004 95.393 12.611 Net change in fund balance (6.504) (4,787) 1.717 Fund Balance - January 1 255.581 255.581 Fund Balance - December 31 $ 249.077 $ 250.794 $ 1.717 88 CITY OF HOPKINS. MINNESOTA SECTION 8 HOUSING SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Intergovernmental: Federal - Section 8 $ 108,000 $ 118.152 $ 10.152 Investment earnings 5.000 4.886 (114) Total Revenues 113.000 123.038 10.038 Expenditures: Salaries and employee benefits 87.868 102.955 (15.087) Matelia1s. supplies and sen'ices 26.231 17.376 8.855 Capital outlay 900 900 Total Expendihlres 114.999 120.331 (6.232) Net change in fund balance ( 1.999) 2.707 4.706 Fund Balance - January 1 98.641 98.641 Fund Balance - December 31 $ 96.642 $ 101.348 $ 4.706 89 CITY OF HOPKINS. MINNESOTA CABLE TV SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Franchise fees $ 150.000 $ 226.602 $ 76.602 Investment earnings 6.500 17.419 10.919 Total Revenues 156.500 244.021 87.521 Expenditures: Salaries and employee benefits 12.786 12.724 62 Materials. supplies and services 70.393 69.952 441 Capital outlay 5.000 5.000 Total Expenditures 88.179 82.676 5.503 Excess of revenues over expenditures 68,321 161.345 93.024 Other Financing Uses: Transfer to A11 Center Fund (86.920) (86.920) Net change in fund balance (18,599) 74.425 93.024 Fund Balance - January 1 320.327 320.327 Fund Balance - December 31 $ 301.728 $ 394.752 $ 93.024 90 CITY OF HOPKINS. MINNESOTA DEPOT COFFEE HOUSE SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Intergovernmental: Federal grant $ $ $ State grant 1,200 1,200 Charges for services 64.500 61.151 (3.349) I1IYestment earnings 1,200 4.514 3.314 Contributions 42.000 64.225 22.225 Total Revenues 107.700 131.090 23.390 Expenditures: Salaries and employee benefits 4.868 3,517 1.351 Materials, supplies and services 92,497 90,406 2.091 Capital outlay 2.500 7.774 (5.274) Total Expendihlres 99.865 10 1.697 ( 1.832) Net change in fund balance 7.835 29.393 21.558 Fund Balance - January 1 89.422 89.422 Fund Balance - December 31 $ 97.257 $ 118.815 $ 21.558 91 CITY OF HOPKINS. MINNESOTA ART CENTER SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Intergovenlluenta1: State grant $ 50.000 $ 50.000 $ Charges for services 287.370 293.998 6.628 Investment earnings 838 Other 430 430 Total Revenues 337.370 345.266 7.058 Expenditures: Salaries and employee benefits 317.146 317.370 (224 ) Materials, supplies and services 110,021 204.442 (94,421) Capital outlay 1.525 Debt service: Interest 9.949 9.949 Total Expenditures 437.116 533.286 (94.645) Other Financing Sources Transfer from other funds 147.920 147.920 Net change in fund balance 48.174 (40,100) (88,274 ) Fund Balance - January 1 (844,377) (844.377) Fund Balance - December 31 $ (796.203) $ (884.4 77) $ (88.274 ) 92 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 1.2 - ENTERTAINMENT CENTER SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Original and Final Budget Actual Variance with final budget positive (negative) Revenues: Taxes: Tax increment $ 50.000 $ 48.663 $ (1,337) Investment earnings 700 3.968 3.268 Total Revenues 50.700 52.631 1.931 Expenditures: Materials, supplies and services 1,050 1.195 ( 145) Debt service Interest 26.431 26.431 Capital outlay: Public improvements 75,000 75,000 Total Expenditures 102.481 76.195 26.286 Net change in fund balance (51,781) (23,564) 28.217 Fund Balance - January 1 (50,915) (50,915) Fund Balance - December 31 $ (102,696) $ (74,479) $ 28.217 93 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 2.1 - R.L. JOHNSON COMPANY SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Taxes: Tax increment $ 375,000 $ 407,516 $ 32.516 Investment earnings 3.000 (3.000) Total Revenues 378.000 407.516 29.516 Expenditures: Materials. supplies and services 19.253 19.526 (273) Debt service: Interest 859 (859) Capital outlay: Site improvements - R.L. Johnson 170.588 184.748 (14.160) Total Expenditures 189.841 205.133 (15.292) Other Financing Uses Transfer to debt service. 1997 - HRA (215.000) (215.000) Net change in fund balance (26,841) (12.617) 14.224 Fund Balance - January 1 (55.660) (55.660) Fund Balance - December 31 $ (82.501) $ (68.277) $ 14.224 94 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 2.6 - SONOMA PROJECT SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Taxes: Tax increment $ 18.000 $ 8.340 $ (9,660) I1IYestment earnings 500 660 160 Other 1.000 10.684 9.684 19.500 19.684 184 Expenditures: Materials. supplies and services 1.050 943 107 Net change in fund balance 18.450 18.741 291 Fund Balance (Deficit) - January 1 (361.963) (361.963) Fund Balance (Deficit) - December 31 $ (343.513) $ (343.222) $ 291 95 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 2.9 - OAKS OF MAINSTREET SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Taxes Tax increment $ 150,000 $ 141.346 $ (8.654 ) Intergovenuuena1 Market value aid credit 12.000 10.559 (1.441) I1IYestment earnings 4.000 13.099 9.099 Total Revenues 166.000 165.004 (996) Expenditures Materials, supplies and services 3,956 4.301 (345) Other Financing Uses: Transfer out for debt service (134.000) ( 134.000) Net change in fund balance 28.044 26.703 (1.341 ) Fund Balance - January 1 267.862 267.862 Fund Balance - December 31 $ 295.906 $ 294.565 $ (1.341) 96 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 2.10 - BUSINESS DISTRICT SPECIAL REVENUE FUND SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Taxes: Tax increment $ 92,000 $ 87,968 $ (4.032) I1IYestment earnings 1.000 1.082 82 Total Revenues 93.000 89.050 (3.950) Expenditures: Materials. supplies and services 79.950 84.702 (4.752) Net change in fund balance 13,050 4.348 (8.702) Fund Balance - January 1 22.098 22.098 Fund Balance - December 31 $ 35.148 $ 26.446 $ (8.702) 97 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 1.3 - 5th A VENUE FLATS SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Tax increment $ $ 386 $ 386 I1IYestment earnings 200 (200) Other 70.000 (70.000) Total Revenues 70.200 386 (69.814) Expenditures: Materials. supplies and services 70.000 34.370 35.630 Capital outlay: Land 2.000.000 2.000.000 Debt service: Interest 591 (591) Total Expenditures 2.070.000 34.961 2.035.039 Other Financing Sources (Uses): Transfer in from tax increment 2.000.000 (2.000.000) Net change in fund balance 200 (34.575) (34,775) Fund Balance - January 1 ( 4.955) ( 4.955) Fund Balance - December 31 $ (4.755) $ (39.530) $ (34.775) 98 CITY OF HOPKINS. MINNESOTA TAX INCREMENT 1.4 - MARKETPLACE & MAIN SCHEDULE OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31. 2007 Variance with Original and final budget Final positive Budget Actual (negative) Revenues: Tax increment $ $ 5.052 $ 5.052 I1IYestment earnings 114 114 Other 40.000 (40.000) Total Revenues 40.000 5.166 (34.834 ) Expenditures: Materials. supplies and services 40.000 20 39.980 Capital outlay: Land 900.000 900.000 Total Expenditures 940.000 900.020 39.980 Other Financing Sources (Uses): Transfer in from tax increment 900.000 900.000 Net change in fund balance 5.146 5.146 Fund Balance - January 1 Fund Balance - December 31 $ $ 5.146 $ 5.146 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT NONMAjOR PROPRIETARY FUNDS Enterprise Funds are established to account for the financing of self-supporting activities of governmental units, which render services to the general public on a user charge basis. Records are maintained on the accrual basis of accounting. The Authority for these types of funds is derived from Section 11.01 of the City Charter, which allows for utility or other public service enterprise funds. The City has six Enterprise Funds, three of which are considered to be non-major, they are: Refuse Utility Fund Pavilion/Ice Arena Fund Housing Authority Fund 100 CITY OF HOPKINS, MINNESOTA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS December 31, 2007 Non Major Business-type Activities-Enterprise Funds NOlllnajor Refuse Payi1ion/ Housing Proprietm')' FlUIds Utility Ice Arena Authority Total ASSE TS ClUTent assets Cash and investments $ 240.345 $ 200 $ 274.601 $ 515.146 Accounts receivable 34.351 33.260 98 67.709 Accl1led interest receivable 1.091 1.091 Loan Receivable 189.372 189.372 Inventory 1.633 1.633 Prepaid expenses 16.944 16.944 Total ClUTent assets 277.420 222.832 291.643 791.895 NonclUTent assets Capital Assets: Land 114.084 114.084 Land held for resale 123.254 123.254 Buildings and stl1lctures 302.727 3.270.186 3.137.854 6.710.767 Distribution svstem 2.584 2.584 Machinery and equipment 614.961 90.116 35.772 740.849 Constl1lction in progress 273.713 273.713 Less accumulated depreciation (379.450) (931.093 ) (2.168.722) (3.4 79.265) Total noncurrent assets 540.822 2.429.209 1.515.955 4.485.986 Total Assets 818.242 2.652.041 1.807.598 5.277.881 LIABILITIES ClllTent Liabilities: Accounts payable 22.175 16.266 174.343 212.784 Sa1m'ies payable 4.662 4.333 8.995 Due to other funds 264.105 20.101 284.206 Due to other govenmIents 4.557 271 4.828 Compensated absences payable 13.857 11.234 11.466 36.557 Total ClllTent Liabilities 45.251 296.209 205.910 547.370 NonClllTent Liabilities: Advance ti'om other funds 137.609 137.609 Total Liabilities 45.251 433.818 205.910 684.979 NE T ASSETS Invested in capital assets, net of related debt 540.822 2.429.209 1.515.955 4.485.986 Umestricted 232.169 (210.986) 85.733 106.916 Total net assets $ 772.991 $ 2.218.223 $ 1.601.688 $ 4.592.902 101 CITY OF HOPKINS, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31. 2007 NOlllnajor Business-type Activities-Enterprise Funds NOlllnajor Refuse Pavi1ion/ Housing Proprietary Funds Utilitv Ice Arena Authoritv Total Opemting revenues: Chm'ges for services $ 683.527 $ 451.269 $ 226,614 $ 1.361.410 Other 8.695 7.734 29.490 45.919 Total Opemting Revenues 692.222 459.003 256.104 1.407.329 Opemting expenses: Cost of sales mId service 576,935 311.839 253,975 1,142,749 Administration 109.804 11,322 57,270 178.396 Depreciation 45.500 61.901 149.671 257.072 Total Operating Expenses 732.239 385.062 460.916 1.5 78.217 Opemting income (loss) (40,017) 73.941 (204,812) ( 170,888) Nonopemting revenues (expenses): Investment earnings 14.991 3.650 18.641 Intergovenllnenta1 gmnts 21,920 277,206 299.126 Loss on disposal of asset (23.028) (23.028) Total nonoperating revenues ( expenses) 36.911 3.650 254.178 294.739 Income (loss) before trmIsters (3.106) 77.591 49.366 123.851 T mnsters in ( out) (25,000) (25,000) Change in net assets (28,106) 77.591 49,366 98.851 Total net assets - beginning 801.097 2.140.632 1.552.322 4.494.051 Total net assets - ending $ 772.991 $ 2,218.223 $ 1.601.688 $ 4.592.902 102 CIn' OF HOPKINS, t-.HNNESOTA COt-.IBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended December 31. 2007 Nonmajor Business-type Activities-Enterprise Funds Nonmajor Refuse Pavilion! Housing Proprietary Funds Utilit~. Ice Arena Authority Total Cash Flows from Operating Activities Receipts from customers and users $ 694,133 $ 453.291 $ 259.731 $ 1.407.155 Intemal activity-payments to other funds (139.144) (139.144) Payments to suppliers (319,901) (111.472) (142.604 ) (573.977) Payments to employees (258.335) (194.803) (87.185 ) (540.323) Payments for interfund selyices used (109.804) (11.322) (12 L126) Net cash provided by (used) by operating activities 6,093 (3.450) 29.942 32,585 Cash Flows from Noncapital Financing Activities Intergovenuuental grants 21.920 277.206 299,126 Transfers (to) Ii-om other funds (25.000) (25.000) Net cash provided by noncapital and related financing activities (3,080) 277.206 274,126 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets (52,681) (52.681) Construction of capital assets (299.980) (299,980) Net cash used by capital and related financing activities (52,681) (299.980) (352,661) Cash Flows From Investing Activities Interest received 15.404 3,650 19,054 Net increase (decrease) in cash and investments (34,264) 200 7.168 (26.896) Cash and Investments - January 1 274,609 261.433 542.042 Cash and Investments - December 31 $ 240,345 $ 200 $ 274,601 $ 515,146 240,345 Reconciliation of operating loss to net cash provided by (used) by operating activities: Operating loss $ (40.017) $ 73.941 $ (20-l.812) $ (170.888) Adjustments to reconcile operating loss to net cash provided by (used) by operating activities: Depreciation expense 45.500 61.901 149.671 257.072 (Increase) decrease in: Accounts receivable 1.911 (2.036) 3.627 3.502 Inventory (373) (373) Prepaid expense (16.944) (16.944 ) Accounts. compensated absences and accrued interest payable (928) 5.564 78.299 82.935 Due to other funds (139.144) 20.101 (1l9.043 ) Unearned revenue (3.676) (3.676) Net Cash Provided by (used) by Operating Activities $ 6,093 $ (3.450) $ 29,942 $ 32.585 103 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT INTERNAL SERVICE FUND Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the government, on a cost reimbursement basis. Revenues and expenses are recognized on the accrual basis. Revenues are recognized in the accounting period in which they are earned and become objectively measurable; expenses are recognized in the period incurred, if objectively measurable. Equipment Replacement Fund - This fund accounts for the acquisition of machinery and equipment. User charges are billed to the various City departments. Insurance Risk Fund - This fund accounts for the dividends and deductibles relating to property and casualty insurance coverage. Oeductibles are paid from past dividends. Users are charged only if fund has a shortfall. Employee Benefits Fund - This fund accounts for accrued employee benefits with the governmental funds. User charges are billed to the various departments. 104 CITY OF HOPKINS. MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS December 3 L 2007 Equipment Insurance Employee Totals Replacement Risk Benefits 2007 ASSETS Current assets: Cash and investments $ 1.369.304 $ 200.232 $ 773.682 $ 2.343.218 Advance to other funds 137.609 137,609 Accmed interest receivable 4.640 730 3.060 8.430 Total current assets 1.511.553 200.962 776.742 2.489.257 Property and equipment Machinery and equipment 5.583.693 5.583.693 Total propel~' and equipment 5.583.693 5.583.693 Less accumulated depreciation (3,130.581) (3,130,581) Net property and equipment 2,453.112 2,453,112 Total Assets 3.964.665 200.962 776,742 4.942.369 LIABILITIES Current Liabilities: Accounts payable 2.756 2.756 Compensated absences payable 682.159 682.159 Total Liabilities 2,756 682,159 684,915 NET ASSETS Invested in capital assets 2.453.112 2.453.112 Unrestricted 1.508.797 200.962 94.583 1.804.342 Total net assets $ 3.961.909 $ 200.962 $ 94.583 $ 4.257.454 105 CITY OF HOPKINS. MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN FUND NET ASSETS Year Ended December 31. 2007 Equipment Insurance Employee Replacement Risk Benefits Total Operating revenues: Charges for sen'ices $ 287.125 $ 33.807 $ $ 320.932 Operating expenses (excluding depreciation): Materials, supplies and services 56.121 25.497 81.618 Operating income before depreciation 231.004 8.310 239.314 Depreciation expense 496.960 496.960 Operating income (loss) (265.956) 8.310 (257.646) Nonoperating revenue: Investment earnings 66.984 8.860 39.698 115,542 Gain on sale of propel~' and equipment 9.456 9.456 Total nonoperating revenues 76.440 8.860 39.698 124.998 Net Income (189.516) 17.170 39.698 (132.648) Transfer Out (50.000) (50.000) Change in net assets (239.516) 17.170 39.698 (182.648) Fund Equity: Net assets - January 1 4.201.425 183.792 54.885 4.440.102 Net assets - December 31 $ 3.961.909 $ 200.962 $ 94.583 $ 4.257.454 106 CITY OF HOPKINS, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31,2007 Equipment Insurance Employee Replacement Risk Benefits Totals Cash Flows from Opemting Activities Receipts from customers and users $ $ 33.807 $ $ 33,807 Receipts from interfund services provided 402,931 402,931 Payments to suppliers (50,697) (45,741) (96,438) Pavments for interfund services used (9.183) (75,918) (85,101) Net cash provided by operating activities 343,051 (11,934) (75,918) 255.199 Cash Flows from Noncapita1 Financing Activities TrmIsters (to) from other funds (50.000) (50.000) Cash Flows ti'om Capital and Related FilUmcing Activities: Purchases of capital assets (304,237) (304,237) Proceeds ti"om Sales of capital assets 9.456 9.456 Net cash used by capital and related tinancing activities (294,781 ) (294,781 ) Cash Flows From Investing Activities 68.099 9.197 40.667 117.963 Net increase (decrease) in cash and cash equivalents 66,369 (2,737) (35,251) 28.381 Cash and Cash Equivalents - Janumy 1 1.302,935 202,969 808,933 2.314.837 Cash and Cash Equivalents - December 31 $ 1.369.304 $ 200.232 $ 773.682 $ 2.343.218 Reconciliation of opemting income (loss) to net cash provided (used) by operating activities: Opemting income (loss) $ (265,956) $ 8.310 $ $ (257,646) Adjustments to reconcile opemting income (loss) to net cash provided by opemting activities: Depreciation expense 496.960 496.960 (Increase) decrease in: Accounts receivable Due ti"om other funds 115.806 115.806 Accounts, compensated absences and accrued intereset payable (3.759) (20.244) (75.918) (99.921) Net Cash Provided by Opemting Activities $ 343.051 $ (11,934) $ (75,918) $ 255.199 107 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT SECTION III STATISTICAL SECTION This part of the City of Hopkins' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and the required supplementary information says about the city's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. Debt Capacity These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments. Operating Information These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs. Sources: Unless otherwise notes, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The city implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. 108 PaQe 109 116 120 125 1275 o I'-- 00 L() -.:t I 00 N -.:tl'--(!) I'-- ~ N \0 ...- I'-- ...- en ...- \0 \0 ...- 00 :::J ...-_ 00_ -.:t_ \0 -.:t_ N I'-- L() 00 I'-- 0 -0 ...... ...-en(!) I'-- 00 \0 ...- en en en en 0) 0 -.:t 1'--0 N 00 \0 N NI'--\0 -.:t ..r:::. 0 enooo 00 (!) I'-- -.:t_ (!) 00 I'-- N () N (/) OO\0N -.:t L() (!) -.:t\0N ...- N ...- -.:t ...- -.:t...- (!) W- W- W- W- W- W- -.:t L() L() -.:t 0 I ...- ...- -.:tL() (!) 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C\I C\I LO 'C\I .,.... co ....- co I'- ....- LO ~ c Q) .r: :s: c o ~ E .E c ro ::::> U u ro t o 0. e! .9 c ro 0> Q) .0 ~ i:3 Q) .r: I- ~ ~ ~ O)c ell .!:: Q) t/) cEo> ~ .6, ~ ~ a>~~Llj z ro, C:$"8J1 Q) ~ .~ ~ C)l/)o.l/) 1ij<Co<C .J: OJ.C Q) ozo...z ell - o Z CITY OF HOPKINS FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 1998 1999 2000 $ 686,708 $ 669,259 $ 652,560 2,148,050 2,208,253 2,4 7 4,067 $ 2,834,758 $ 2,877,512 $ 3,126,627 2001 General Fund Reserved Unreserved Total general fund $ 617,388 2,581,317 $ 3,198,705 All other Governmental Funds Reserved reported in: Special Revenue Funds $ 3,793,620 $ 3,907,110 $ 3,504,264 $ 4,816,824 Capital Projects Funds Debt Service Funds 1,441,881 1,625,660 1,819,160 4,727,313 Unreserved reported in: Special Revenue Funds 2,761,577 3,403,501 4,946,910 2,585,542 Capital Projects Funds 2,096,426 3,523,091 3,922,727 3,484,848 Debt Service Funds Total all other governmental funds $ 10,093,504 $ 12,459,362 $ 14,193,061 $ 15,614,527 Total all funds $ 12,928,262 $ 15,336,874 $ 17,319,688 $ 18,813,232 112 Schedule 3 Fiscal Year 2002 2003 2004 2005 2006 2007 $ 580,462 $ 557,628 $ 97,740 $ 943,474 $ 974,517 $ 1,157,142 2,795,941 3,230,283 3,973,556 3,367,721 3,345,606 3,304,729 $ 3,376,403 $ 3,787,911 $ 4,071,296 $ 4,311,195 $ 4,320,123 $ 4,461,871 $ 4,989,862 $ 5,813,114 $ 4,326,291 $ 6,010,974 $ 5,625,355 $ 3,137,313 10,107,076 6,500,016 1,526,732 2,728,091 3,045,346 3,789,322 6,303,112 2,852,655 12,982,623 3,096,445 1,705,798 2,901,921 969,812 1,539,404 1,070,230 4,106,501 3,993,924 3,993,720 3,945,500 1,718,021 1,808,708 $ 25,027,975 $ 21,058,198 $ 16,537,986 $ 17,229,398 $ 11,735,435 $ 18,998,874 $ 28,404,378 $ 24,846,109 $ 20,609,282 $ 21,540,593 $ 16,055,558 $ 23,460,745 113 CITY OF HOPKINS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 1998 1999 2000 2001 Revenues Property Taxes $ 4,252,468 $ 4,375,195 $ 4,655,968 $ 5,087,313 Tax Increments 1,951,190 2,203,348 2,232,616 2,730,232 Special Assessments 822,648 874,243 1,109,585 1,253,592 Intergovernmental 2,423,834 4,206,190 3,719,263 3,096,853 Licenses and Permits 336,959 469,564 428,435 377,048 Charges for Services 4,276,749 1,282,886 676,290 471,515 Fines and Forfeits 133,4 72 151,295 148,257 167,252 Investment Earnings 607,564 522,442 744,653 627,909 Miscellaneous 813,704 258,069 237,466 338,543 Total revenues 15,618,588 14,343,232 13,952,533 14,150,257 Expenditures Current: General Government 945,062 938,264 1,033,201 1,043,394 Public Safety 3,310,911 3,401,233 3,196,224 3,398,981 Health and Welfare Highways and Streets 1,732,412 1,732,291 1,591,676 1,693,361 Urban Redevelopment and Housing 1,200,605 1,175,801 1,079,606 1 ,141 ,409 Culture and Recreation 575,623 715,657 658,967 667,410 Other 72,981 23,874 1,318 34,290 Capital outlay 4,084,982 6,930,760 2,664,797 4,667,505 Debt Service Principal 6,695,000 1,340,000 720,000 995,847 Interest and fiscal charges 1,102,916 731,958 995,622 1,116,134 Bond Issuance Costs 25,156 Total expenditures 19,720,492 16,989,838 11 ,941 ,411 14,783,487 Excess (deficiency) of revenues over expenditures (4,101,904) (2,646,606) 2,011 , 122 (633,230) Other Financing Sources (Uses) Sale of Property Proceeds from Issuance of Debt 4,880,000 2,125,000 Discount on Debt Premium on Debt Transfer In 8,645,165 1,930,212 936,942 2,092,153 Transfer Out (7,875,720) (1,754,994) (965,250) (2,090,379) Total other financing sources (uses) 769,445 5,055,218 (28,308) 2,126,774 Net change in fund balances $ (3,332,459) $ 2,408,612 $ 1,982,814 $ 1,493,544 Debt service as a percentage of noncapital expenditures 49.9% 20.6% 18.5% 21.1% 114 Schedule 4 Fiscal Year 2002 2003 2004 2005 2006 2007 $ 6,215,194 $ 6,877,331 $ 7,283,712 $ 7,788,557 $ 8,134,915 $ 8,473,516 2,003,743 2,214,835 2,177,518 970,846 $ 990,776 $ 1,050,601 1,363,167 1 ,460,464 1,441,885 1,368,262 1,288,437 1,172,977 2,830,806 2,850,337 1,758,573 1,177,016 1,036,645 2,115,670 468,312 777,997 686,933 643,811 540,120 880,443 898,896 797,233 792,280 1,017,343 631,655 729,365 148,112 181,893 197,337 207,454 203,830 215,051 584,238 327,959 339,883 358,336 705,591 638,796 460,422 224,320 700,012 558,575 692,649 851 ,203 14,972,890 15,712,369 15,378,133 14,090,200 14,224,618 16,127,622 1,061,960 1,259,121 1,094,526 1,332,796 1,366,246 1,597,503 3,690,368 4,433,499 4,695,803 4,848,336 4,994,273 5,290,802 185,893 180,314 176,552 176,502 184,541 1,652,143 1,674,836 1,681,484 1,812,403 1,824,658 2,091,043 1,157,960 1,595,927 937,849 911,005 944,577 1,787,131 1,027,243 1,044,948 1,074,587 1,093,699 997,987 1,122,891 93,508 4,480,058 9,030,629 6,651,109 2,489,137 3,055,815 5,830,516 3,991,502 1,407,647 1,644,908 2,306,152 4,926,284 1,610,000 1,345,811 1,688,138 1,780,620 1,535,171 1,418,311 1,131,514 41,906 81 ,109 18,500,553 22,320,638 19,741,200 16,547,157 19,704,653 20,727,050 (3,527,663) (6,608,269) (4,363,067) (2,456,957) (5,480,035) (4,599,428) 14,170,000 3,050,000 3,385,000 11,875,000 (4,240) (72,905) 7,520 2,355,193 2,042,771 2,594,787 1,625,994 5,273,592 14,940,055 (2,328,241 ) (2,602,175) (2,468,547) (1,618,486) (5,278,592) (14,745,055) 14,196,952 2,490,596 126,240 3,388,268 (5,000) 12,004,615 $ 10,669,289 $ (4,117,673) $ (4,236,827) $ 931,311 $ (5,485,035) $ 7,405,187 38.1% 23.3% 26.6% 27.8% 37.9% 18.9% 115 Schedule 5 CITY OF HOPKINS ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS (in thousands of dollars) Less: Total Taxable Payable Residential Apartment Commercial Industrial Other Tax-Exempt Market Total Direct Year Property Property Property Property Property Property Value Tax Rate 1998 N/A N/A N/A N/A N/A 85,442 662,246 $ 30.460 1999 N/A N/A N/A N/A N/A 85,442 725,856 $ 32.440 2000 464,257 153,201 149,427 114,138 133 85,442 795,581 $ 32.190 2001 515,292 174,592 158,422 136,803 147 85,442 899,667 $ 31.130 2002 609,165 192,868 168,922 140,653 160 85,442 1,026,166 $ 54.790 2003 690,469 234,684 178,305 148,739 215 85,442 1,166,755 $ 56.100 2004 924,590 256,511 264,953 154,778 225 182,899 1,417,933 $ 56.660 2005 1,000,569 256,942 277,231 163,616 243 182,899 1,515,459 $ 48.940 2006 1,062,213 256,559 305,233 176,812 288 182,899 1,618,206 $ 48.262 2007 1,080,591 257,658 329,601 188,941 306 182,899 1,674,198 $ 45.862 Notes: (1) The direct tax rate is applied to the tax capacity of the property which is calculated by applying a statutory formula to the estimated market value of the property. The tax capacity is then multiplied by the direct tax rate to determine the city taxes payable on a specific parcel. (2) Tax exempt property is revalued on a six-year cycle. All other property is revalued on a three year cycle. 116 Schedule 6 CITY OF HOPKINS Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) City Direct Rate Overlapping Rates General Total Direct Obligation and Debt Total School Hennepin Metro Total Overlapping Basic Rate Service Direct District County Council Other Overlapping Tax Rate Fiscal Year 1998 28.070 2.390 30.460 61.060 38.390 5.650 2.500 107.600 138.060 1999 30.020 2.420 32.440 58.940 40.990 6.040 3.350 109.320 141.760 2000 29.920 2.270 32.190 56.560 39.660 6.040 3.040 105.300 137.490 2001 28.916 2.124 31.040 44.220 37.620 5.820 2.310 89.970 121.010 2002 51.950 2.840 54.790 15.030 50.490 3.530 5.160 74.210 129.000 2003 49.190 6.910 56.100 20.590 50.610 3.830 6.010 81.040 137.140 2004 49.028 7.636 56.664 22.200 47.320 3.500 5.260 78.280 134.944 2005 44.049 4.895 48.944 19.176 44.172 3.304 5.243 71.895 120.839 2006 41.300 6.962 48.262 21.565 41.016 2.924 5.180 70.685 118.947 2007 39.574 6.288 45.862 19.019 39.110 2.671 5.746 66.546 112.408 Source: Hennepin County, Minnesota Taxpayer Services Department Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service are based on each year's requirements. 117 Schedule 7 CITY OF HOPKINS PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND TEN YEARS AGO 2007 1998 Percentage Percentage of Total of Total City City Tax Tax Tax Tax Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Super Value $ 1,254,050 1 7.33 % $ 940,835 1 6.47 % Greenfield Apartments, LLP 274,375 2 1.60 365,856 3 2.52 Southwest Real Estate, Inc. 243,750 3 1.43 Hopkins Real Estate, LLC 229,250 4 1.34 Ramsgate Apartments LLC 225,000 5 1.32 243,640 6 1.68 Opus Northwest, LLC 213,250 6 1.25 Duke Realty Ltd Partnership 203,250 7 1.19 501,154 2 3.45 Auburn Limited Partnership 156,663 8 0.92 Oak Ridge Country Club 155,670 9 0.91 Hines Reit Mpls Ind LLC 139,350 10 0.81 St. Therese 293,925 4 2.02 Alliant Tech 261,676 5 1.80 Westside Village 204,782 7 1.41 Gateway Foods 183,918 8 1.26 Christian Salvesen 173,145 9 1.19 Edco Products, Inc. 173,104 10 1.19 Total $ 3,094,608 18.10 % $ 3,342,035 22.98 % Total City 2007/1998 tax capacity $ 17,100,534 $ 14,543,901 Source: Hennepin County, Minnesota Assessor's Office Notes: 1) Tax capacity is a percentage of total market value. 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OJ C o 0 l!l E::;::; 0) 0) co OQ::i 0)0.. 1Il.s8.. ~ 0) 'D o 0) C ZCJ)CO o N Schedule 10 CITY OF HOPKINS RA TIOS OF NET GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS General Bonded Debt Outstanding Less: Amt Percentage of General Available in Total Actual Taxable Fiscal Obligation Debt Service Primary Value of Per Year Bonds Funds Government Property Capita 1998 1,945,000 256,613 $ 1,688,387 0.255 1 01 .96 1999 1,780,000 260,270 $ 1,519,730 0.209 89.99 2000 1,615,000 184,143 $ 1,430,857 0.180 83.46 2001 2,760,000 1,479,638 $ 1,280,362 0.142 74.68 2002 12,065,000 301,342 $ 11,763,658 1.146 681.95 2003 14,955,000 498,383 $ 14,456,617 1.239 823.32 2004 14,795,000 979,296 $ 13,815,704 0.974 783.07 2005 14,120,000 716,119 $ 13,403,881 0.884 758.35 2006 13,445,000 950,596 $ 12,494,404 0.772 723.77 2007 22,685,000 10,879,698 $ 11,805,302 0.705 679.75 Notes: Details regarding the city's outstanding debt can be found in note 8 of the notes to the financial statements. See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data See the Demographic and Economic Statistics schedule 14 for population data 121 Schedule 11 CITY OF HOPKINS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2007 Estimated Estimated Share of Net Debt Percentage Overlapping Outstanding Applicable Debt Overlapping: Hennepin County $ 468,235,504 1.25% $ 5,852,944 Hopkins ISD 270 $ 103,257,789 17.25% $ 17,811,969 St. Louis Park ISD 283 $ 41,131,509 0.40% $ 164,526 Hennepin Suburban Park District $ 73,402,105 1.65% $ 1,211,135 Hennepin Regional RR Authority $ 44,577,469 1.25% $ 557,218 Metropolitan Council 118,428,506 0.56% $ 663,200 Total Overlapping 26,260,992 City of Hopkins Direct Debt $ 12,236,152 100% 12,236,152 Total Direct and Overlapping Debt: $ 38,497,144 Source: Hennepin County, Minnesota Taxpayer Services Notes: (1) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule shows the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (2) Net Debt Outstanding excludes revenue and special assessment debt and takes into consideration any sinking funds obligated for the repayment of the bonds. 122 N ~ :J '0 0) ..c U (f) I/) z 52 a. o :::c 11. o >- !::: (.) z o i= <(I/) :Eo::: 0:::<( OW~ 11.>-1::: ~...J(tJ Z<(~ -(.)0 t?1/):S 0:::- <( 11. .S: :EZ~ I-W(tJ ml-=g WI-~ C~ ...J...J <( t? W ...J .....CON LO OaLO 00 ~ CO_ N_ CO ...NC') N CllCOC') N QlCO >-.,...: Iii (A- U 1/1 4- i.i: 0 ... c .E 0) s::: E o >- ~ ~ ~ 0) :::::s W l.... ():J .... 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N N co co r--. co ...... r--. ...... a '<t co co r--. co N co '<t LO C') a LO E .8 0) :c co g 0.. c.. co 15 0) '0 0:; C co 15 I- N '<t 0> a N ':!2. o N a r--: C') (A- 00 LO ':!2. o '<t LO N '<t 00 (A- co co N cO ':!2. o 00 0> C') '<t (A- LO 0> LO '<t ...... ':!2. o 0> ~ N '<t (A- ':!2. o N 0> LO LO (A- ':!2. o LO LO a co (A- ':!2. o ...... C'! '<t ...... C') N (A- LO 0> co r--. ':!2. o a C! a (A- a LO r--. LO ':!2. o r--. ~ a r--. co 00 N ':!2. o co r--. C') .... 'f c OJ ro E 0) ..c:'!::: -; .~ ....- <Ll15 :c 0) co '0 U4- = 0 c..0) c..OJ co co DE 0) 0) '0 U .... 0:; 0) c c.. co co o ~ I- 15 <Ll '0 co OJ <Ll ...J Schedule 13 CITY OF HOPKINS PLEDGED~EVENUECOVERAGE LAST TEN FISCAL YEARS Water Revenue Bonds Storm Sewer Revenue Bonds Fiscal Debt Service Debt Service Year Revenue Principal Interest Coverage Revenue Principal Interest Coverage 1998 $ $ $ $ 567,046 $ 135,000 $104,870 2.36 1999 681,323 140,000 98,750 2.85 2000 701,757 205,000 162,992 1.91 2001 1,053,414 115,000 181,049 3.56 723,825 230,000 176,596 1.78 2002 894,543 100,000 96,668 4.55 708,852 1,840,000 141,379 0.36 2003 967,389 105,000 84,079 5.12 690,367 250,000 113,178 1.90 2004 844,017 110,000 42,912 5.52 741,831 330,000 141,647 1.57 2005 998,129 115,000 79,532 5.13 682,497 325,000 130,213 1.50 2006 1,083,675 120,000 75,733 5.54 775,261 330,000 119,445 1.72 2007 1,133,248 125,000 69,699 5.82 724,778 350,000 111,605 1.57 Notes: Details regarding the City's outstanding debt can be found in Note 8 of the notes to the financial statements. Schedule 14 CITY OF HOPKINS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Personal Per Income Capita Fiscal (thousands Personal School Unemployment Year Population of dollars) Income Enrollment Rate 1998 16,559 95,327 33,046 11 ,082 2.1 1999 16,887 101,063 34,466 12,341 2.2 2000 17, 145 109,818 36,830 11,532 2.7 2001 17, 145 113,012 37,359 10,903 3.5 2002 17,250 115,607 37,834 10,948 4.4 2003 17,559 119,628 38,819 11 ,447 4.6 2004 17,643 127,551 40,998 11,416 4.3 2005 17,675 133,237 42,457 10,896 3.7 2006 17,263 140,320 44,237 10,828 3.9 2007 17,367 140,320 44,237 10,770 4.5 Notes: Population estimates from Metropolitan Council, except for 2000 which is per the U.S. Census. Personal income estimates based on U.S. Department of Commerce Bureau of Economic Analysis data for the Minneapolis-St. Paul Statistical Area Per-capita personal income data from U.S. Department of Commerce Bureau of Economic Analysis data for the Minneapolis-St. Paul Statistical Area School enrollment is from the Minnesota Department of Education and is for public and non-public schools in Hopkins School District #270 Unemployment rate information from Minnesota Department of Employment and Economic Development Schedule 15 CITY OF HOPKINS PRINCIPAL EMPLOYERS, CURRENT YEAR AND SEVEN YEARS AGO 2007 2000 (1) Percentage Percentage of Total of Total Taxpayer Employees Rank Employment Employees Rank Employment ISD 270 Hopkins (2) 1,800 1 15.776 % 1 ,430 6 11.938 % SuperValu 1,500 2 13.146 1,540 1 12.856 GE Water & Process Technologies 550 3 4.820 Augustana Chapel View Care Center 250 4 2.191 160 Thermotech 235 5 2.060 325 4 2.713 Oak Ridge Country Club 200 6 1.753 180 9 1.503 Rudy Luther's Hopkins Honda 200 7 1.753 102 City of Hopkins 135 8 1.183 177 10 1.478 Hopkins Care Center 125 9 1.096 140 Sungard Financial Systems 115 10 1.008 170 Alliant Techsystems 600 2 5.009 ADC Telecommunications 400 3 3.339 PGI Fulfillment, Inc. 301 5 2.513 Advance Circuits 207 7 1.728 Quality Assured Label, Inc. 185 8 1.544 Total $ 5,110 44.79 % $ 5,917 44.62 % Source: Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State Business Directory Notes: DNA - Historical data not available (1) Most current available (2) Includes employees working in school buildings located within the City. Schedule 16 CITY OF HOPKINS FULL-TIME EQUIVALENT CITY EMPLOYEES BY TYPE, LAST TEN FISCAL YEARS Full-time-Equivalent Employees as of December 31, 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General Government Administrative Services 3.50 3.50 4.65 4.53 5.11 5.11 3.53 5.55 5.55 5.15 Finance 4.00 4.00 3.95 4.00 4.00 4.00 4.30 4.60 4.60 4.60 Municipal Building 2.05 2.00 2.00 2.00 1.50 1.50 0.85 1.40 1.45 1.45 Community Services 10.20 10.20 10.10 10.30 10.30 10.30 9.74 8.90 8.90 9.48 Public Safety Police 37.50 37.50 37.50 37.50 40.25 40.25 39.00 37.50 38.50 39.40 Fire 0.80 0.80 0.80 0.80 0.90 0.90 0.90 1.20 1.20 1.20 Public Works 22.75 22.75 23.50 22.67 23.05 23.05 20.00 19.50 18.60 18.59 Recreation Activity Center 3.32 3.32 3.32 3.65 3.66 3.66 2.55 4.10 4.10 4.00 Skate Park 0.05 Planning & Zoning 2.10 2.10 1.85 1.85 1.28 1.28 1.20 1.20 1.20 1.20 Total General Government 86.22 86.17 87.67 87.30 90.05 90.05 82.07 83.95 84.10 85.12 Special Revenue Funds Economic Development 1.50 1.50 1.80 1.80 2.37 2.37 2.40 1.60 1.60 1.60 Paratransit 0.15 0.15 0.15 0.15 0.15 0.15 0.20 0.20 0.20 0.20 Housing Rehabilitation 1.00 1.00 1.05 1.05 1.05 1.05 0.65 0.70 0.70 0.70 Parking 1.28 1.28 1.30 1.80 1.80 1.80 1.20 2.00 2.00 1.00 Section 8 0.80 1.30 1.30 1.20 1.20 1.20 1.40 1.40 1.40 1.35 Cable 1.05 1.05 1.05 1.05 0.58 0.58 0.07 0.05 0.05 0.10 Depot Coffee House 2.00 2.00 1.50 0.67 0.73 0.73 1.08 1.93 0.05 Art Center 3.92 3.72 4.22 4.05 4.05 Total Special Revenue Funds 7.78 8.28 8.15 7.72 7.88 11.80 10.72 12.10 10.00 9.05 Enterprise Funds Water 3.60 3.60 3.82 3.82 4.18 4.18 3.56 3.24 3.25 3.25 Sanitary Sewer 3.50 3.50 3.81 3.71 3.35 3.35 3.23 3.55 3.56 3.56 Refuse 4.00 4.00 3.27 3.68 3.68 3.68 3.89 4.15 4.08 4.08 Storm Sewer 0.55 0.55 0.58 0.82 0.62 0.62 0.47 0.47 0.46 0.46 Pavilion/Ice Arena 2.25 2.92 2.82 2.82 2.37 2.37 2.44 2.44 2.90 2.72 Art Center 2.80 3.55 3.88 3.78 3.92 Skate Park 0.35 0.38 0.38 Housing and Redevelopment 1.90 1.90 1.90 1.90 1.90 1.90 1.90 1.90 2.40 2.45 Total General Government 18.60 20.02 20.08 20.88 20.40 16.48 15.49 15.75 16.65 16.52 Total 112.60 114.47 115.90 115.90 118.33 118.33 108.28 111.80 110.75 110.69 Source: City Finance Office 127 CITY OF HOPKINS OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Years Fiscal Function/Program 1998 1999 2000 2001 2002 General Government Elections 2 1 2 1 2 Registered voters 8,810 8,810 8,812 9,101 9,138 Number of votes cast 6,767 1,785 8,023 2,390 6,629 Voter participation (registered) 76.8% 20.3% 91.1% 26.3% 72.5% Public Safety Police Total Calls for Service 12,191 12,236 11,699 12,518 15,161 Sworn Officers 21 21 22 24 24 Arrests 1,414 1,216 1,123 992 1,201 911 Calls for Service N/A N/A N/A N/A 6,207 Traffic Stops N/A N/A N/A 4,025 2,005 Parking Citations N/A N/A N/A 2,219 1,939 Fire Fires 44 38 48 51 43 False Alarm 102 99 117 117 132 Fire Runs 288 294 320 342 330 Medical Runs 159 192 189 216 213 Average Response Time (minutes) 6.1 5.2 5.2 5.0 5.1 Inspections Building Permits 463 587 443 498 487 Value of Building Permits $11,692,315 $42,828,312 $17,051,981 $17,070,262 $34,562,884 Public Works Miles of seal coating N/A N/A N/A N/A 4 Miles of crack sealing N/A N/A N/A N/A 3.25 Sidewalk repairs in square feet N/A N/A N/A N/A 2,875 Alley repairs in square yards N/A N/A N/A N/A 173 Culture and Recreation Art Center Bookings N/A N/A N/A N/A 2,928 Reserved Hours N/A N/A N/A N/A 15,369 Customer Visits for Events/Activities N/A N/A N/A N/A 156,400 Water Gallons of water pumped (in millions) 847.4 835.5 1,031.2 954.9 936.8 Number of well house inspections 2,488 2,488 2,488 2,488 2,488 Number of hydrants flushed 100+ 100+ 100+ 100+ 100+ Water Rate $ 1.10 $ 1.10 $ 1.20 $ 1.20 $ 1.20 Sanitary Sewer Sanitary sewage flow (in millions of gallons) 622.8 625.5 637.6 717.8 678.4 Miles of sewer lines jetted n/a n/a n/a n/a n/a Number of manholes checked/cleaned 292 222 262 292 222 Lift Station Maintenance checks 4,374 4,374 4,374 4,374 4,374 Sewer Rate $ 2.50 $ 2.25 $ 2.25 $ 2.25 $ 2.25 Refuse Number of refuse accounts 2,655 2,661 2.663 2,664 2,663 Tons of refuse collected 2,729 2,746 2,780 2,827 3,280 Tons of recycled material (residential) 1,136 1,176 1,219 1,289 1,082 Refuse rate $11.00-14.45 $11.00-14.45 $11.00-14.45 $11.00-14.45 $11.00-14.45 Recycling rate $ 2.25 $ 2.25 $ 2.25 $ 2.25 $ 2.75 Pavilion/Ice Arena Ice time rental hours 1,510 1,530 1,463 1,478 1,479 Turf use hours 480 410 485 405 403 Mezzanine rental use 0 0 0 0 0 Source: Various City Departments Notes: (1) Information not available is labeled N/A.. 128 Schedule 17 Year 2003 2004 2005 2006 2007 1 2 1 2 1 8,830 11,518 9,708 10,621 8,330 909 8,880 2,186 6,279 1,146 10.3% 77.1% 22.5% 59.1% 13.8% 17,114 19,648 19,049 18,567 19,137 24 25 26 26 26 1,229 1,232 1,272 1,199 1,216 7,192 5,513 4,908 4.547 4,588 2,813 3,044 2,916 3,321 4,287 2,705 1,506 1,122 841 747 52 48 76 59 70 113 103 107 101 70 329 326 337 297 350 148 113 121 68 59 5.1 5.3 5.3 5.3 4.3 498 542 365 494 377 $40,363,863 $34,316,423 $32,333,498 $14,272,117 $50,544,210 4 4 4 4 3.2 3.25 3.25 3.25 3.25 2.88 2,875 2,875 2,875 2,875 4,279 173 157 143 130 253 3,551 5,598 5,598 5,570 6,054 22,335 36,950 36,950 35,710 39,060 174,100 182,800 182,800 202,000 203,000 960.3 941.0 919.1 954.8 920.9 2,488 2,488 2,488 2,488 2,488 100+ 100+ 100+ 100+ 100+ $ 1.20 $ 1.40 $ 1.40 $ 1.40 $ 1.40 634.3 653.2 647.3 638.2 641.3 n/a 14.7 15.0 14.6 17.3 262 292 222 262 441 4,374 4,374 4,374 4,374 4,374 $ 2.25 $ 2.25 $ 2.25 $ 2.50 $ 2.50 2,695 2,670 2,673 2,766 2,670 2,624 2,671 2,643 2,549 2,448 1,305 1,248 1,185 1,118 1,138 $11.00-14.45 $11.00-14.45 $12.50-15.90 $12.50-15.90 $12.50-15.90 $ 2.75 $ 2.75 $ 2.75 $ 2.75 $ 2.75 1,487 1,521 1,433 1,443 1,458 450 464 362 407 442 0 162 351 339 345 129 Schedule 18 CITY OF HOPKINS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Years Fiscal Year Function/Program 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 - - Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 9 9 9 10 10 10 10 10 11 11 Fire Stations Public Works Highways (miles) 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 County Highways 5.69 5.69 5.69 5.69 5.69 5.32 5.32 5.32 5.32 5.32 City Streets (miles) 47.13 47.13 47.13 47.13 47.13 47.50 47.50 47.50 47.50 47.50 Alleys (miles) 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 Streetlights 350 350 350 350 350 360 360 398 398 398 Traffic Signals 44 44 44 44 44 44 44 44 44 44 Refuse collection trucks 3 3 3 3 3 3 3 3 3 3 Culture & Recreation Parks Parks 16 16 16 16 16 16 16 16 16 16 Park Trails 3 3 3 3 3 3 4 4 4 4 Park Acres 99 99 99 99 102 102 104 104 104 104 Park Shelters 10 10 10 10 10 10 10 10 10 11 Playgrounds 11 11 11 11 11 11 11 11 11 11 Skateboard Parkllnline Skating 0 0 0 1 1 1 1 1 1 1 Skating Rinks 7 7 7 7 7 7 7 7 7 7 Hockey Rinks 6 6 6 6 6 6 6 6 5 5 Basketball Courts 6 6 6 6 6 6 6 6 6 6 Softball Fields 4 4 4 4 4 4 4 4 4 4 Swimming Beach 1 1 1 1 1 1 1 1 1 1 Tennis Courts 12 12 12 12 12 12 8 8 8 8 Volleyball Courts 2 2 2 2 2 2 2 2 2 2 Watermains Distribution System (miles) 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 Fire Hydrants 560 560 560 560 560 560 560 560 560 560 Storage Capacity (gallons in tho us) 3,200 3,200 3.200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 Water Connections 3,125 3,126 3,126 3,126 3,144 3,157 3,163 3,163 3,168 3,168 Sanitary Sewer Collection System (miles) 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 Sewer Connections 3,050 3,050 3,050 3,050 3,064 3,077 3,081 3,081 3,086 3,086 Storm Sewer Pipe (miles) 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 Parking Parking Lots 7 7 7 7 7 7 7 7 7 7 Parking Ramp 1 1 1 1 1 1 1 1 1 1 Source: Various City Departments 130