2018 City of Hopkins, MN Annual Financial ReportCity of Hopkins, Minnesota
Comprehensive Annual Financial Report
for year ended December 31, 2018
18
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2018
Prepared by the Department of Finance
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2018
TABLE OF CONTENTS
I INTRODUCTORY SECTION
Letter of Transmittal from the City Manager and Finance Director
Page
3
Certificate of Achievement for Excellence in Financial Reporting 7
Administrative Organization Chart 8
City Officials 9
II FINANCIAL SECTION
Independent Auditors' Report
12
Management's Discussion and Analysis 15
A. Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 30
Statement of Activities 31
Fund Financial Statements:
Balance Sheet - Governmental Funds 32
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 34
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 38
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund 39
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Economic Development Special Revenue Fund 40
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Arts Center Special Revenue Fund 41
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Tax Increment District Super Valu
Special Revenue Fund 42
Statement of Net Position - Proprietary Funds 44
Statement of Revenues, Expenses and Changes in
Net Position - Proprietary Funds 46
Statement of Cash Flows - Proprietary Funds 48
Notes to Financial Statements 51
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2018
Page
B. Required Supplementary Information
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 88
Schedule of Proportionate Share of Net Pension Liability - Public Employees
General Employees Retirement Fund 88
Schedule of the City's Contributions – Public Employees 89
Schedule of the City's Contribution to the Hopkins Fire Relief Fund 90
Schedule of Changes in the Net Pension Asset and Related Ratios - Hopkins
Fire Relief 91
Notes to Required Supplementary Information 92
C. Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 97
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds 107
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 117
Parking 118
Communications 119
Hopkins Race & Equity Initiative 120
Depot Coffee House 121
Tax Increment District Entertainment Center 122
Tax Increment District Sonoma Project 123
Tax Increment District Oaks of Mainstreet 124
5th Avenue Flats 125
Tax Increment District Moline 126
Tax Increment District Marketplace & Main 127
Combining Statement of Net Position - Nonmajor Enterprise Funds 130
Combining Statement of Revenues, Expenses and Changes in
Net Position - Nonmajor Enterprise Funds 131
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 123
Combining Statement of Net Position - Internal Service Funds 134
Combining Statement of Revenues, Expenses and Changes in
Net Position - Internal Service Funds 135
Combining Statement of Cash Flows - Internal Service Funds 136
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2018
Page
A. Financial Trends
Net Position by Component 140
Changes in Net Position 142
Fund Balances, Governmental Funds 144
Changes in Fund Balances, Governmental Funds 146
B. Revenue Capacity
Assessed and Actual Value of Taxable Property 148
Direct and Overlapping Property Tax Rates 149
Principal Property Taxpayers 150
Property Tax Levies and Collections 151
C. Debt Capacity
Ratios of Outstanding Debt by Type 152
Ratios of Net General Bonded Debt Outstanding 153
Direct and Overlapping Governmental Activities Debt 154
Legal Debt Margin Information 155
D. Demographic and Economic Information
Demographic and Economic Statistics 156
Principal Employers 157
E. Operating Information
Full-time Equivalent City Employees by Type 158
Operating Indicators by Function/Program 160
Capital Asset Statistics by Function/Program 162
III STATISTICAL SECTION
1
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2018
SECTION I
INTRODUCTORY SECTION
2
3
June 20, 2019
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, 2018 is hereby submitted. This report was prepared
in accordance with U.S. generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) and meets the requirements of the
Minnesota State Auditor’s Office.
This report consists of management’s representations concerning the finances of the City of
Hopkins. Consequently, management assumes full responsibility for both the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for
making these representations, management of the City of Hopkins has established a
comprehensive internal control framework that is designed both to protect the government’s
assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Hopkins financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City of Hopkins comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material respects.
The City of Hopkins financial statements have been audited by CliftonLarsonAllen LLP, a firm
of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of Hopkins for the fiscal year ended
December 31, 2018, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent
auditor concluded based upon the audit, that there was a reasonable basis for rendering
unmodified opinions that the City of Hopkins financial statements for the fiscal year ended
December 31, 2018, are fairly presented in conformity with GAAP. The independent auditors’
report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found in the financial section of this report
immediately following the report of the independent auditors.
4
Profile of the Government
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in
1893. The name was changed in 1928 to Hopkins after one of the early residents. The original
territory of incorporation was three square miles, but successive annexation since 1946 has
enlarged this area by one-third. In 1947, the residents of the area adopted a City Charter with a
Council/Manager form of government. The governing council is responsible, among other
things, for passing ordinances, adopting the budget, appointing committees and hiring the
government’s manager and the government’s attorney. The government’s manager is responsible
for carrying out the policies and ordinances of the government, for overseeing day-to-day
operations of the government and for appointing the heads of the government’s departments.
The report includes all funds of the City, including the City’s Housing and Redevelopment
Authority (HRA). The City provides a full range of services including general government,
public safety, highways and streets, urban redevelopment and housing, culture and recreation,
and health and welfare. In addition to general municipal activities, the City provides water,
sewer, storm sewer and refuse services and operates an ice arena. Low-income rental housing is
a function of the HRA. The Hopkins Fire Relief Association has not met the established criteria
for inclusion in the reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and
control. All departments of the City of Hopkins are required to submit requests for appropriation
to the Finance Director by June of each year. The Finance Director uses these requests as the
starting point for developing a proposed budget. The Finance Director then presents this
proposed budget to the Council for review prior to September 30th. The Council is required to
hold public hearings on the proposed budget and to adopt a final budget no later than December
31, the close of the City of Hopkins fiscal year.
The appropriated budget is prepared by fund and department. Department heads may make
transfers of appropriations within a department. Transfers of appropriations between funds
require approval of the City Council. Budget to actual comparisons are provided in this report for
each individual governmental fund for which an annual budget has been adopted. For the
General Fund and the major Special Revenue Funds this comparison is presented on pages 39-42
as part of the basic financial statements for the governmental funds. For governmental funds,
other than the General fund and major Special Revenue Funds, with annual budgets, this
comparison is presented in the combining and individual fund statements and schedules
subsection of this report on pages 113-123.
5
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-industrial. The city’s population has grown slightly. The City is largely developed,
but has seen some redevelopment for apartment buildings. In the next several years the City will
see the redevelopment of a 17-acre site, which will include residential and commercial
components.
The City Council and staff along with an organized group of concerned partners determined what
the Vision and the Mission of the City of Hopkins should be. Participation in this project was
very high and the resulting Vision and Mission are as follows:
Community Vision
Creating a spirit of community where:
• All people feel safe and respected, and diversity is celebrated.
• Business growth is supported and a vibrant downtown is maintained.
• People enjoy exceptional government services, neighborhoods and outstanding schools.
City of Hopkins Mission
• Inspire, Educate, Involve, Communicate
Economic Condition and Outlook
Hopkins continues to show strong economic and redevelopment opportunities within the city.
The ground breaking for Southwest Light Rail Transit (SWLRT) occurred during 2018. The
project will continue to be a catalyst for development along its corridor, including in Hopkins.
Development activity is also the result of successful planning on the part of the city council and
city staff.
Efforts are being made for continued development and growth for 2019 and beyond. It is
anticipated that over $150,000,000 of construction will also take place in the City of Hopkins
during the next several years. The largest anticipated project is Hopkins Cold Storage Site
Development, a 17-acre site with and projected valuation of $62,000,000.
Long-term financial planning
The City of Hopkins has a strategic plan for economic development and has completed extensive
planning work in anticipation of the Southwest Light Rail Transit (SWLRT) line and the three
Hopkins LRT stations. As a part of the plans, the City of Hopkins intends to pursue various
development and redevelopment efforts throughout the City.
6
Future projects
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in
2003, which guides future improvements and connections to regional trails.
The City has established a street reconstruction and storm sewer program based on a street
condition survey and storm water management program. The streets found in poor condition and
future problem streets will be systematically included for repairs in the five-year Capital
Improvement Plan.
The City Hall Building was last updated in 1989. It will undergo a complete renovation during
2019. The project budget is $4.9 million. The main priorities of the remodel are to create a more
comfortable and efficient work environment for city staff, expand the service counter to improve
customer service to residents and improve the City Council chambers.
Certificate of Achievement
For Excellence in Financial
Reporting
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial reporting to the City of
Hopkins for its comprehensive annual finance report for the fiscal year ended December 31,
2017. In order to be awarded a Certificate of Achievement for Excellence in Financial
Reporting, a governmental unit must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both U.S. generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
We wish to express our appreciation to the Mayor and City Council for their continued interest
and support in planning and conducting the financial operations of the City in a responsible and
progressive manner. We also want to express our appreciation to the Finance Department staff
for their work in preparing this report.
Respectfully submitted,
Michael J. Mornson Nick Bishop, CPA
City Manager Finance Director
7
Organizational Chart
CITIZENS
City Manager
CITY
COUNCIL
Community
Services Finance Fire
Police
Planning &
Economic
Development
Recreation
Public Works
City of
Minnetonka
City Clerk
Communications
Information
Services
Inspections
Reception
Activity Center
Assessing
Accounting
Payroll
Utility Billing
Economic
Development
Housing
Planning &
Zoning
Public Housing
Fire & Medical
Response
Prevention
Emergency
Preparedness
Patrol
Investigation
Communication
Crime
Prevention
Building Maint. &
Equipment Services
Engineering
Parks & Forestry
Street/Traffic/Refuse
Water & Sewer
Pavilion/Ice Arena
Boards &
Commissions City Attorney
Administrative
Services
Center for the
Arts
Depot Coffee
House
8
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OFFICIALS
December 31, 2018
CITY COUNCIL
Term
Expires
Mayor 12-31-19
Councilmember 12-31-19
Councilmember 12-31-21
Councilmember 12-31-19
Councilmember 12-31-19
CITY MANAGER
Appointed
FINANCE DIRECTOR
Molly Cummings
Jason Gadd
Kristi Halverson
Brian Hunke
Aaron Kuznia
Michael J. Mornson
Nick Bishop Appointed
9
10
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2018
SECTION II
FINANCIAL SECTION
11
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of Hopkins,
Minnesota (the City), as of and for the year ended December 31, 2018, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material missta tement, whether due to fraud
or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States . Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the f inancial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity ’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
12
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City as of December 31, 2018, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary
comparison for the General Fund and major special revenue funds for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
During the fiscal year ended December 31, 2018, the City adopted GASB Statement No. 75 Accounting
and Financial Reporting for Postemployment Benefits Other than Pensions . As a result of the
implementation of this standard, the City reported a restatement for the change in accounting principle
(see Note 12.) Our auditors’ opinion was not modified with respect to the restatement.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, schedule of changes in the City’s total OPEB liability and related ratios ,
schedules of the City’s proportionate share of net pension liabilities and schedules of the City’s pension
contributions, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States o f America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund statements and schedules and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financ ial statements.
The combining and individual nonmajor fund statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statemen ts and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial s tatements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund statements and schedules are fairly
stated, in all material respects, in relation to the basic f inancial statements as a whole.
13
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and , accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 20,
2019 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the result of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on co mpliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 20, 2019
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, 2018. This discussion and
analysis should be read in conjunction with the letter of transmittal in the introductory section of this
report.
Financial Highlights
The assets and deferred outflows of the City exceeded liabilities and deferred inflows at the
close of the 2018 fiscal year by approximately $69.6 million (net position). Of this amount,
approximately $(12.7) million (unrestricted net position) is unavailable to meet the City’s
ongoing obligations to citizens and creditors due in part to the recognition of the City's share of
the unfunded pension obligation.
The City’s total net position increased by approximately $12.0 million. A key factor in this
increase was the addition of capital assets, partially offset by the increase in debt. Positive
operating results in the Water, Sewer and Storm Sewer funds also contribute to the increase.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of approximately $19.8 million, a decrease of approximately $(4.5)
million in comparison with the prior year's fund balance. The decrease was primarily due to the
use of bond proceeds and contributions for capital project costs. Approximately $2.1 million of
fund balance is available for spending at the City’s discretion (assigned or unassigned fund
balance).
As of December 31, 2018, unassigned fund balance for the General Fund was approximately
$5.2 million, or 38% of total general fund expenditures. This compares to $ 5.5 million from
the prior year, a decrease of approximately $292,000. The General Fund working capital goal
policy stated that the City will strive to maintain a fund balance in the General Fund for
working capital of 42% of the previous year's General Fund expenditures. At December 31st
working capital is at 41%.
The City of Hopkins total debt increased by approximately $5.7 million during the current fiscal
year due to the sale of tax abatement and general obligation bonds for two bond issues. Total
new debt totaled $10.0 million and bond maturities totaled $4.34 million.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Hopkins basic
financial statements. The City of Hopkins basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
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.
15
The statement of net position presents information on all of the City of Hopkins assets, deferred
outflows of resources, liabilities, and deferred inflows of resources with the difference between them
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City of Hopkins is improving or deteriorating.
The statement of activities presents information showing how the City net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Hopkins that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Hopkins include general,
public safety, highways, streets, culture, recreation, urban redevelopment, housing, health and welfare.
The business-type activities of the City of Hopkins include water, sewer, refuse, storm sewer utilities, an
ice arena, and a housing and redevelopment authority.
The government-wide financial statements include the City of Hopkins itself, but also a legally separate
Hopkins Housing and Redevelopment Authority. Although the Hopkins Housing and Redevelopment
Authority is legally separate, it functions for all practical purposes as a department of the City of
Hopkins, and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 30-31 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Hopkins, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City of Hopkins can be divided into two
categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows of spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
16
The City of Hopkins maintains forty-nine individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund, Economic Development, Arts Center,
Tax Increment District Super Valu, Permanent Improvement Revolving and Pavilion Addition fund all
of which are considered to be major funds. Data from the other forty-three funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special
revenue funds except for the Community Development Block Grant fund. A budgetary comparison
statement has been provided for the General fund and major special revenue funds and schedules are
provided for other funds to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 32-37 of this report.
Proprietary funds. The City of Hopkins maintains two types of proprietary funds. Enterprise funds
are used to report the same functions presented as business-type activities in the government-wide
financial statements. The City of Hopkins uses enterprise funds to account for its water, sewer, refuse,
storm sewer utilities, the pavilion ice arena, and the housing and redevelopment authority. Internal
service funds are an accounting device used to accumulate and allocate costs internally among the City
of Hopkins various functions. The City of Hopkins uses internal service funds to account for
replacement of equipment, insurance deductibles and compensated absences. Because all of these
services predominantly benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
water utility, sewer utility, storm sewer utility and pavilion funds, all of which are considered to be
major funds of the City of Hopkins. Data from the other two enterprise funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major proprietary funds is
provided in the form of combining statements elsewhere in this report. The internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is also provided in the form of combining statements elsewhere
in this report.
The basic proprietary fund financial statements can be found on pages 43-47 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found
on pages 49-82 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information. Required supplementary information can be found on page 85-90
of this report.
17
The combining statements referred to earlier in connection with non-major governmental funds,
non-major proprietary funds and internal service funds are presented immediately following the required
supplementary information. Combining and individual fund statements and schedules can be found on
pages 94-132 of this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Hopkins, assets and deferred outflows exceeded liabilities and
deferred inflows by $69,612,414 at the close of the most recent fiscal year.
Due to the recognition of pension liability almost all (94%) of the City of Hopkins net position is
reflected in its investment in capital assets (e.g., land, buildings, machinery and equipment); less any
related debt used to acquire those assets that are still outstanding. The City of Hopkins uses these
capital assets to provide services to citizens. The net capital assets are not available for future spending.
Although the City of Hopkins investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources.
City of Hopkins Net Position
December 31
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Assets
Current and other assets $ 31,482,784 $ 33,266,659 $ 3,493,480 $ 3,045,994 $ 34,976,264 $ 36,312,653
Capital assets 85,900,124 73,787,401 37,996,931 30,491,036 123,897,055 104,278,437
Total assets 117,382,908 107,054,060 41,490,411 33,537,030 158,873,319 140,591,090
Deferred Outflows of Resources
Deferred charges on refunding 187,149 227,927 - - 187,149 227,927
Pensions 5,337,385 6,774,365 188,041 265,497 5,525,426 7,039,862
Total deferred outflows of
resources 5,524,534 7,002,292 188,041 265,497 5,712,575 7,267,789
Liabilities
Other liabilities 92,427 4,511,905 508,088 457,206 600,515 4,969,111
Long-term liabilities
outstanding 71,418,011 69,075,730 10,541,692 7,693,108 81,959,703 76,768,838
Total liabilities 71,510,438 73,587,635 11,049,780 8,150,314 82,560,218 81,737,949
Deferred Inflows of Resources
Pensions 7,169,642 7,424,016 249,295 217,834 7,418,937 7,641,850
Net Position
Net investment in capital assets 37,136,053 32,064,111 28,627,563 23,990,746 65,763,616 56,054,857
Restricted 16,547,512 18,544,263 - - 16,547,512 18,544,263
Unrestricted (14,432,266)(17,563,673) 1,733,552 1,443,445 (12,698,714)(16,120,228)
Total net position $ 39,251,299 $ 33,044,701 $ 30,361,115 $ 25,434,191 $ 69,612,414 $ 58,478,892
A portion of the City of Hopkins net position represent resources that are subject to external restrictions
on how they may be used.
The City’s net position increased by $11,133,522 during the current fiscal year., which includes a
restatement of beginning net position of ($870,365) due to the implementation of GASB statement No.
75.
18
The net pension liability and the pension-related deferred outflows and inflows of resources (which are
reported in accordance with GASB Statement No. 68), do not change the City's future funding
requirements or obligations under the plans, which are determined by state statutes. Additionally, the
City has recorded the net pension asset of the Hopkins Fire Department Relief Association in the
government-wide statements.
Net position was impacted by $8,832,255 at December 31, 2018 due to the effects of this standard.
Pension-related amounts included in the above schedule related to the standard are as follows:
Net pension asset $ 814,900
Deferred outflows of resources 5,381,166
Net pension liability (7,609,384)
Deferred inflows of resources (7,418,937)
Total $ (8,832,255)
(remainder of this page left blank intentionally)
19
Governmental and business-type activities. Governmental activities increased the City of Hopkins
net position by $6,967,588 and business-type activities increased net position by $5,036,299. Key
elements of the increases are as follows:
City of Hopkins Changes in Net Position
For the Year Ended December 31
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues:
Charges for services $ 2,252,352 $ 1,467,705 $ 6,937,410 $ 6,632,139 $ 9,189,762 $ 8,099,844
Operating grants and
contributions 11,597,974 8,007,553 579,401 697,635 12,177,375 8,705,188
Capital grants and
contributions 1,630,559 1,731,738 - - 1,630,559 1,731,738
General revenues:
Property taxes 14,343,939 12,895,910 81 - 14,344,020 12,895,910
Tax increments 2,433,504 2,146,730 - - 2,433,504 2,146,730
Grants and contributions
not restricted 56,990 20,510 2,758 - 59,748 20,510
Investment earnings 225,337 168,437 13,153 20,760 238,490 189,197
Gain on sale of capital
assets 45,002 69,883 17,210 (54) 62,212 69,829
Total revenues 32,585,657 26,508,466 7,550,013 7,350,480 40,135,670 33,858,946
Expenses:
General government 4,361,727 6,751,459 - - 4,361,727 6,751,459
Public safety 7,846,565 8,126,086 - - 7,846,565 8,126,086
Health and welfare 196,435 179,916 - - 196,435 179,916
Highways and streets 4,562,075 5,932,978 - - 4,562,075 5,932,978
Urban redevelopment and
housing 2,352,139 1,354,036 - - 2,352,139 1,354,036
Culture and recreation 2,015,291 2,737,116 - - 2,015,291 2,737,116
Interest on long-term debt 65,784 1,335,290 - - 65,784 1,335,290
Water - - 1,704,965 1,871,868 1,704,965 1,871,868
Sewer - - 2,288,938 2,406,027 2,288,938 2,406,027
Storm sewer - - 461,036 460,771 461,036 460,771
Refuse - - 910,481 874,750 910,481 874,750
Pavilion/ice arena - - 689,178 547,831 689,178 547,831
Housing and
redevelopment authority - - 677,169 591,895 677,169 591,895
Total expenses 21,400,016 26,416,881 6,731,767 6,753,142 28,131,783 33,170,023
Increase in net position before
transfers
11,185,641 91,585 818,246 597,338 12,003,887 688,923
Transfers (4,218,053)(3,533,235) 4,218,053 3,533,235 - -
Increase (decrease) in net position 6,967,588 (3,441,650) 5,036,299 4,130,573 12,003,887 688,923
Net position - January 1, as
previously stated 33,044,701 34,098,004 25,434,191 22,233,618 58,478,892 56,331,622
Cumulative effect of change in
accounting principle (760,990) - (109,375) - (870,365) -
Prior period adjustment - 2,388,347 - (930,000) - 1,458,347
Net position - January, as restated 32,283,711 36,486,351 25,324,816 21,303,618 57,608,527 57,789,969
Net position - December 31 39,251,299 33,044,701 30,361,115 25,434,191 69,612,414 58,478,892
20
Governmental activities: Property taxes increased in 2018 due to tax growth and increased levy
amounts. The City also received a number of program grants for specific programs in addition to
county grants for ongoing projects and redevelopment activity. Net position increased primarily due to
a major project costs that were capitalized in 2018, and partially offset by an increase in debt..
21
Business-type activities. Business-type activities had an increase in net position due to transfers and
increased revenues. A utility rate study was completed in 2016 with a large increase implemented in
2017 that is designed to cover operations, debt and capital needs over the next 5 years. Smaller
incremental increases are planned annually to continue to improve the financial health of the utility
funds.
22
Financial Analysis of the City’s Funds
As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City of Hopkins governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Hopkins financing requirements. In particular, unassigned fund balance may serve
as a useful measure of a City’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined
ending fund balances of $19,792,736, decrease of $(4,450,026) in comparison with the prior year's
balance. The decrease of fund balance in the current year was caused by the spend down of bond
proceeds and other contributions recevied for capital projects. This was offset by increases due to
issuing debt for capital projects that will be completed in 2019.
Approximately 10% of fund balance or $2,051,457, constitutes assigned and unassigned fund balance,
which is available for spending at the City’s discretion. The remainder of fund balance is
non-spendable, restricted or committed to indicate that it is not available for new spending because it is
either in a non-spendable form (inventory, prepaid expenses, rehabilitative loans, or property held for
resale); restricted (debt service, tax increment projects) or has already been committed (for economic
development, property purchases, parking, and communication activities).
The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal
year, unassigned fund balance of the general fund was $5,179,824. This represents 92.2% of the general
fund’s total fund balance. As a measure of the general fund’s liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents approximately 37.8% of total general fund expenditures while total fund balance
represents approximately 41.0% of that same amount.
The fund balance of the City of Hopkins general fund decreased by $(234,601) during the current fiscal
year. Expenditures exceeded revenues by $(219,601) before transfers. This decrease can be attributed
to expenditures exceeding budget in general government and public safety.
The Economic Development fund has a total fund balance of $3,196,922 of which $3,196,922 is
committed for economic development. The fund balance decreased by $(1,261,752) primarily as a
result grant expenditures being spent before grant revenues became available. Grant revenue will be
recognized in 2019.
The Arts Center fund has a deficit fund balance of $(1,231,091) all of which is unassigned. The fund
balance deficit increased by $(50,679) mainly due to deferred maintenance projects occurring at the Arts
Center building. While the Arts Center received a programming grant from the Minnesota State Arts
Board to offset programming costs those costs still exceeded budgeted revenues due to higher
performing artist fees and expenses. Staff and the Friends of the Hopkins Center for the Arts, a
non-profit associated with the Arts Center, continue working to identify significant donors and
corporate sponsors to underwrite arts programming and decrease the deficit.
23
The Tax Increment District Super Valu fund has a total fund balance of $6,298,784 of which all is
restricted for tax increment. The fund balance increased by $718,967 due to revenues exceeding
amounts owed to developers for project costs and related financing.
The Permanent Improvement Revolving fund has a total fund balance of $(925,676) which is
unassigned. The fund balance decreased by $(2,581,282) as a result of capital outlay for street projects.
The fund recorded approximately $1.6 million of deferred inflows for unavailable revenue that was not
available in the current year, it will be recognized in 2019.
The Pavilion Addition Fund has a total fund balance of $(103,752) which is unassigned. The fund
balance decreased by $(1,266,643) primarily as the result of spending outside contributions received in
2017.
Proprietary funds. The City of Hopkins proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Unrestricted net position of the Water fund at the end of the year amounted to $(1,224,923). The
increase in net position amounted to $1,058,089 and is due to operating revenues exceeding operating
expenses along with transfers in from the permanent improvement fund for reimbursement of project
costs. The City completed a utility rate study which evaluated the entire rate structure of the water fund.
The City implemented a tiered rate structure in 2017 that will meet state requirements for conservation
pricing and meet the City's needs for operations and capital expenditures. Rates were increased again in
2018 with smaller incremental increases planned annually.
Unrestricted net position of the Sewer fund at the end of the year amounted to $184,790. The
unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $1,024,038 and is due to operating revenues exceeding operating expenses along
with transfers in from the permanent improvement fund for reimbursement of project costs. Along with
the water fund a utility rate study was also done for the sewer fund. A rate structure was put in place in
February 2017 to ensure adequate funds are maintained for operations and capital needs in the
long-term. Rates were increased again in 2018 with smaller incremental increases planned annually.
Unrestricted net position of the Storm Sewer Utility fund at the end of the year amounted to $1,457,247.
The unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $408,947 and is due to transfers in from the permanent improvement fund for
reimbursement of project costs and operating revenues exceeding operating expenditures.
Unrestricted net position of the Pavilion fund at the end of the year amounted to $(298,766). The
increase in net position amounted to $2,362,840 and is due to capital contributions transferred in from
Governmental funds. The fund will continue to cover operating costs, except depreciation, with
operating revenue.
General Fund Budgetary Highlights
There is no difference between the general fund original budget and the final approved budget. The
City always adopts a balanced budget and does not plan to have a decrease or increase in total fund
balance. Amending the budget was not considered necessary during the year.
24
During the year revenues were over budgetary estimates by $56,696 due to increased license and permit
revenue, fines, grants, recreation fees and donations. This was offset by a decrease in tax revenues as a
result of rebates due taxpayers who challenged their valuations in tax court and less than expected
miscellaneous revenues.
Expenditures were over budget by $(291,297) and was due to increased costs in the general government,
and public safety primarily due to increased personnel and professional services costs.
The net effect of these budget impacts was a decrease in fund balance of $(234,601) after transfers.
Capital Asset and Debt Administration
Capital assets. The City of Hopkins investment in capital assets for its governmental and business type
activities as of December 31, 2018, amounts to $123,897,055 (net of accumulated depreciation). This
investment in capital assets includes land, buildings, improvements, vehicles, machinery and
equipment, park facilities, roads, highways, bridges, distribution systems and construction in progress.
Major capital asset events during the current fiscal year included the following:
Construction in progress additions totaled $16,477,500 for infrastructure projects and the Blake
Road construction project.
A total of $10,208,846 of assets was transferred from construction in progress to other
improvements as infrastructure projects were completed and put into service.
Vehicle and equipment purchases totaled $1,218,682. Major purchases include a dump truck,
street sweeper and public safety vehicles.
Vehicle and equipment deletions totaled $674,856. Deletions were a result of scheduled
replacements of public works and public safety vehicles and equipment.
City of Hopkins Capital Assets
(net of depreciation)
December 31
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Land $ 6,157,677 $ 6,157,677 $ 254,299 $ 254,299 $ 6,411,976 $ 6,411,976
Buildings 12,477,169 12,989,899 3,298,825 2,982,040 15,775,994 15,971,939
Infrastructure - - 6,810,061 7,218,828 6,810,061 7,218,828
Improvements 40,366,743 35,762,239 22,224,710 12,817,870 62,591,453 48,580,109
Vehicles 2,649,835 2,858,479 841,717 853,812 3,491,552 3,712,291
Equipment 2,731,696 2,565,913 273,885 275,596 3,005,581 2,841,509
Construction in progress 21,517,004 13,453,194 4,293,434 6,088,591 25,810,438 19,541,785
$ 85,900,124 $ 73,787,401 $ 37,996,931 $ 30,491,036 $ 123,897,055 $ 104,278,437
-
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 61-62 of
this report.
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $70,025,000. Of this amount $14,295,000 comprises tax increment redevelopment debt,
and $48,945,000 comprises general obligation and special assessment debt, all of which is backed by
the full faith and credit of the government. Another $890,000 is special fees debt for which the
government is liable in the event of default by the property owners subject to the fees. The remainder of
25
the City of Hopkins debt, $5,895,000, represents bonds intended to be paid from specified revenue
sources (i.e., revenue bonds).
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
G.O. Tax increment bonds $ 14,295,000 $ 15,235,000 $ - $ - $ 14,295,000 $ 15,235,000
G.O. Housing fee bonds 890,000 1,160,000 - - 890,000 1,160,000
G.O. Equipment certificates 345,000 425,000 - - 345,000 425,000
G.O. Capital improvement
bonds
38,470,000 33,735,000 - - 38,470,000 33,735,000
G.O. Special assessment bonds 6,845,000 7,465,000 - - 6,845,000 7,465,000
Revenue bonds - - 9,180,000 6,345,000 9,180,000 6,345,000
$ 60,845,000 $ 58,020,000 $ 9,180,000 $ 6,345,000 $ 70,025,000 $ 64,365,000
The City of Hopkins total bonded debt increased by $5,660,000 during the current fiscal year. The
increase is a result of the issuance of $6,715,000 in G.O. Bonds that financed street reconstruction
projects and equipment; and the issuance of $3,285,000 on GO Tax Abatement Bonds for The City's ice
arena. Total principal payments of $4,340,000 were made during 2018. General Obligation Bonds are
backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax
Increment levies and also by fees assessed against benefited properties.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by the
Water, Sewer, and Storm Sewer Utility Funds and the Pavilion Fund current revenues.
City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and
repayment monies are generated by the collection of special assessments and general levies.
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market
value. At December 31, 2018, the debt limit for the City is $57,694,845. Of the total debt, $34,730,000
of general obligation and revenue bonds is applicable to the limit. After taking into consideration funds
on hand available to liquidate debt, the legal debt margin is $25,519,755.
The City of Hopkins was upgraded to a “AA+” rating from Standard & Poor’s in January 2014 which
was most recently reaffirmed in February of 2019 and maintains an “A1” rating from Moody’s.
Additional information on the City of Hopkins long-term debt can be found in note 9 on pages 63-66 of
this report.
Economic Factors and Next Year’s Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2019 budget.
The City will continue a two year street reconstruction project of a major road and its residential street
improvement program. Employee compensation will remain competitive in the market, which was
most recently affirmed with a compensation and classification study in 2017. Water and sewer rates
were increased incrementally based on a 2016 utility rate study. The City continues to use a Financial
Management Plan that can estimate the property tax increases or decreases on a median value home as a
26
basis for decision making. As a result of these factors the City prepared a budget for 2018 that included
a general fund increase of 7.26% and an overall increase of 12.30% in expenditures.
During the current fiscal year, unassigned fund balance in the general fund was $5,179,824 or 38% of
general fund expenditures. The Office of the State Auditor recommends unassigned fund balances of no
less than five months of operating expenditures. The unassigned fund balance is used to pay for the
City’s general fund obligations until it receives its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Director of Finance, City of Hopkins, 1010 First Street South, Hopkins, MN 55343.
27
28
BASIC FINANCIAL STATEMENTS
29
City of Hopkins
Statement of Net Position
December 31, 2018
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and cash equivalents $22,597,975 $3,797,858 $26,395,833
Taxes receivable 246,252 157 246,409
Special assessments receivable 2,889,388 -2,889,388
Accounts receivable 519,013 627,975 1,146,988
Intergovernmental receivable 2,584,281 65,738 2,650,019
Interest receivable 27,399 217 27,616
Internal balances 1,046,914 (1,046,914)-
Inventories 76,954 34,138 111,092
Net pension asset 814,900 -814,900
Prepaid items 135,833 14,311 150,144
Land held for resale 543,875 -543,875
Capital assets, non depreciable 27,674,681 4,547,733 32,222,414
Capital assets, net of depreciation 58,225,443 33,449,198 91,674,641
Total Assets 117,382,908 41,490,411 158,873,319
Deferred Outflows of Resources
Deferred charge on refunding 187,149 -187,149
Pensions and OPEB 5,337,385 188,041 5,525,426
Total Deferred Outflows of Resources 5,524,534 188,041 5,712,575
Liabilities
Accounts payable 3,053,330 240,217 3,293,547
Salaries payable 261,920 92,259 354,179
Due to other governments 807,459 14,150 821,609
Accrued interest payable 727,223 125,238 852,461
Unearned revenue 92,427 36,224 128,651
Non current liabilities:
Compensated absences due within one year 884,053 91,630 975,683
Total OPEB liability due within one year 126,131 18,129 144,260
Total OPEB liability due in more than one year 770,206 124,291 894,497
Net pension liability 6,652,981 956,403 7,609,384
Bonds due within one year 4,515,000 -4,515,000
Bonds due in more than one year 58,595,771 9,369,368 67,965,139
Total Liabilities 76,486,501 11,067,909 87,554,410
Deferred Inflows of Resources
Taxes and special assessments -133 133
Pensions 7,169,642 249,295 7,418,937
Total Deferred Inflows of Resources 7,169,642 249,428 7,419,070
Net Position
Net investment in capital assets 37,136,053 28,627,563 65,763,616
Restricted for:
Economic development 6,956,130 -6,956,130
Park improvements 176,573 -176,573
Debt service 8,599,909 -8,599,909
Net pension asset 814,900 -814,900
Unrestricted (14,432,266)1,733,552 (12,698,714)
Total Net Position $39,251,299 $30,361,115 $69,612,414
The notes to the financial statements are an integral part of this statement.
30
City of Hopkins
Statement of Activities
For the Year Ended December 31, 2018
Program Revenues Net Revenues (Expenses) and Changes in Net Position
Functions/Programs Expenses
Charges for
Services
Operating Grants
and Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Governmental Activities:
General government $4,361,727 $43,471 $2,324,932 $943,345 $(1,049,979)$-$(1,049,979)
Public safety 7,846,565 171,291 1,155,459 -(6,519,815)-(6,519,815)
Health and welfare 196,435 48,550 169,213 -21,328 -21,328
Highways and streets 4,562,075 165,600 7,153,575 687,214 3,444,314 -3,444,314
Urban redevelopment and housing 2,352,139 961,625 59,362 -(1,331,152)-(1,331,152)
Culture and recreation 2,015,291 861,815 735,433 -(418,043)-(418,043)
Interest on long-term debt 65,784 ---(65,784)-(65,784)
Total Governmental Activities 21,400,016 2,252,352 11,597,974 1,630,559 (5,919,131)-(5,919,131)
Business-Type Activities:
Water 1,704,965 1,931,035 15,474 --241,544 241,544
Sewer 2,288,938 2,780,090 200 --491,352 491,352
Storm sewer 461,036 806,605 ---345,569 345,569
Refuse 910,481 954,620 45,575 --89,714 89,714
Pavilion/Ice arena 689,178 62,161 333,033 --(293,984)(293,984)
Housing and redevelopment authority 677,169 402,899 185,119 --(89,151)(89,151)
Total Business-type Activities 6,731,767 6,937,410 579,401 --785,044 785,044
Total Government $28,131,783 $9,189,762 $12,177,375 $1,630,559 (5,919,131)785,044 (5,134,087)
General revenues:
Property taxes 14,343,939 81 14,344,020
Tax increments 2,433,504 -2,433,504
Grants & contributions not restricted 56,990 2,758 59,748
Unrestricted investment earnings 225,337 13,153 238,490
Gain on disposal of capital assets 45,002 17,210 62,212
Transfers (4,218,053)4,218,053 -
Total General Revenues 12,886,719 4,251,255 17,137,974
Change in net position 6,967,588 5,036,299 12,003,887
Net position - January 1, as previously stated 33,044,701 25,434,191 58,478,892
Cumulative effect of change in accounting principle (760,990)(109,375)(870,365)
Net position - January 1, as restated 32,283,711 25,324,816 57,608,527
Net position - December 31 $39,251,299 $30,361,115 $69,612,414
The notes to the financial statements are an integral part of this statement.
31
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2018
General Fund
Economic
Development Arts Center
Tax Increment
District Super
Valu
Permanent
Improvement
Revolving
Assets
Cash and cash equivalents $2,822,734 $2,928,979 $-$5,976,653 $695,558
Taxes receivable 182,729 5,862 4,159 --
Special assessments receivable ----116,789
Accounts receivable 257,732 2,096 1,590 -86,540
Rehabilitation loans receivable -----
Due from other governments 207,752 805,700 --1,570,829
Interest receivable 3,648 1,144 -612 6,718
Due from other funds 2,710,920 853,515 ---
Inventories 76,954 ----
Prepaid items 115,414 -15,764 --
Property held for resale -222,156 -321,719 -
Total Assets $6,377,883 $4,819,452 $21,513 $6,298,984 $2,476,434
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $407,408 $2,620 $39,391 $200 $1,720,122
Salaries payable 235,604 4,829 9,739 --
Due to other funds --1,200,071 --
Due to other governments 791 805,700 57 --
Unearned revenue 5,951 -803 --
Total Liabilities 649,754 813,149 1,250,061 200 1,720,122
Deferred inflows of resources:
Taxes and special assessments 110,443 3,681 2,543 -111,159
Unavailable revenue -805,700 --1,570,829
Total Deferred Inflows of Resources 110,443 809,381 2,543 -1,681,988
Fund balances:
Non-spendable 192,368 ----
Restricted ---6,298,784 -
Committed -3,196,922 ---
Assigned 245,494 ----
Unassigned 5,179,824 -(1,231,091)-(925,676)
Total Fund Balances (Deficits)5,617,686 3,196,922 (1,231,091)6,298,784 (925,676)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $6,377,883 $4,819,452 $21,513 $6,298,984 $2,476,434
The notes to the financial statments are an integral part of this statement.
32
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2018
Pavilion Addition
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and cash equivalents $169,173 $8,399,075 $20,992,172
Taxes receivable -53,502 246,252
Special assessments receivable -2,772,599 2,889,388
Accounts receivable -142,226 490,184
Rehabilitation loans receivable -28,829 28,829
Due from other governments --2,584,281
Interest receivable 667 12,251 25,040
Due from other funds --3,564,435
Inventories --76,954
Prepaid items -4,655 135,833
Property held for resale --543,875
Total Assets $169,840 $11,413,137 $31,577,243
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $273,592 $267,227 $2,710,560
Salaries payable -11,748 261,920
Due to other funds -1,317,450 2,517,521
Due to other governments -911 807,459
Unearned revenue -85,673 92,427
Total Liabilities 273,592 1,683,009 6,389,887
Deferred inflows of resources:
Taxes and special assessments -2,790,265 3,018,091
Unavailable revenue --2,376,529
Total Deferred Inflows of Resources -2,790,265 5,394,620
Fund balances:
Non-spendable --192,368
Restricted -7,527,464 13,826,248
Committed -525,741 3,722,663
Assigned --245,494
Unassigned (103,752)(1,113,342)1,805,963
Total Fund Balances (Deficits)(103,752)6,939,863 19,792,736
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $169,840 $11,413,137 $31,577,243
The notes to the financial statments are an integral part of this statement.
33
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
December 31, 2018
Fund balances of governmental funds $ 19,792,736
Amounts reported for governmental activities in the statement of net position are different because:
Capital Assets used in governmental activities are not financial resources and, therefore, not reported
in the governmental funds.
Capital assets 111,856,315
Less: accumulated depreciation (30,673,114)
Taxes and special assessments receivable will be collected in future years, but are not available soon
enough to pay for the current period's expenditures and therefore are deferred in the funds 3,018,091
Grants and reimbursements will be collected in future years, but are not available soon emough to pay
for the current period's expenditures are therefore afe deferred in the funds. 2,376,529
Internal service funds are used by the City to charge the costs of certain activities, such as replacement
of City vehicles and equipment. The assets and liabilities of the internal service funds are included in
the governmental activities in the statement of net assets. 5,098,262
Long-term liabilities, including bonds payable and accrued interest payable, are not due and payable in
the current period and, therefore, are not reported in the governmental funds.
Bond principal payable (60,845,000)
Unamortized premium/discount (2,265,771)
Accrued interest payable (727,223)
Deferred charges on refunding 187,149
The City's net pension liability, net pension asset, total OPEB liability and related deferred outflows
and inflows of resources are recorded only on the Statement of Net Position. Balances at year end are:
Net pension asset 814,900
Deferred outflows of resources related to pensions 5,211,254
Deferred outflows of resources related to OPEB 126,131
Net pension liability (6,652,981)
Total OPEB liability (896,337)
Deferred inflows of resources related to pensions (7,169,642)
Net position of governmental activities $ 39,251,299
34
35
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2018
General Fund
Economic
Development Arts Center
Tax Increment
District Super
Valu
Permanent
Improvement
Revolving
Revenues
Property taxes $10,543,110 $479,054 $244,093 $-$391
Franchise Fees 313,571 ----
Tax increments ---2,092,747 -
Special assessments ----197,395
Intergovernmental 1,330,932 -34,876 -6,308,435
Fees, licenses and permits 701,381 -1,050 --
Charges for services 378,249 1,150 364,724 --
Fines 171,483 ----
Investment earnings 4,083 20,449 3 16,912 155,284
Other miscellaneous revenues 49,242 83,671 242,849 -79,911
Total Revenues 13,492,051 584,324 887,595 2,109,659 6,741,416
Expenditures
Current:
General government 2,440,530 ----
Public safety 7,461,507 ----
Health and welfare 190,623 ----
Highways and streets 2,849,197 ----
Urban redevelopment and housing 92,767 1,846,076 -54,584 -
Culture and recreation 671,033 -977,330 --
Debt service:
Principal retirement -----
Interest and fiscal fees -----
Capital Outlay 5,995 -47,864 -13,006,334
Total Expenditures 13,711,652 1,846,076 1,025,194 54,584 13,006,334
Excess (deficiency) of revenues
over expenditures (219,601)(1,261,752)(137,599)2,055,075 (6,264,918)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in --86,920 -3,753,461
Transfer out (15,000)--(1,336,108)(69,825)
Total Other Financing Sources (Uses)(15,000)-86,920 (1,336,108)3,683,636
Net change in fund balances (234,601)(1,261,752)(50,679)718,967 (2,581,282)
Fund balance (deficit) - January 1 5,852,287 4,458,674 (1,180,412)5,579,817 1,655,606
Fund balance (deficit) - December 31 $5,617,686 $3,196,922 $(1,231,091)$6,298,784 $(925,676)
The notes to the financial statements are an integral part of this statement.
36
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2018
Pavilion
Addition
Non-major
Governmental
Funds
Total
Governmental
Funds
Revenues
Property taxes $- $ 3,147,557 $ 14,414,205
Franchise Fees -530,145 843,716
Tax increments -340,757 2,433,504
Special assessments -923,872 1,121,267
Intergovernmental -792,328 8,466,571
Fees, licenses and permits --702,431
Charges for services -189,394 933,517
Fines -18,912 190,395
Investment earnings 4,205 14,069 215,005
Other miscellaneous revenues 500,000 305,033 1,260,706
Total Revenues 504,205 6,262,067 30,581,317
Expenditures
Current:
General government -431,795 2,872,325
Public safety -138,574 7,600,081
Health and welfare --190,623
Highways and streets -434,665 3,283,862
Urban redevelopment and housing -300,920 2,294,347
Culture and recreation -375,763 2,024,126
Debt service:
Principal retirement - 3,890,000 3,890,000
Interest and fiscal fees - 1,496,932 1,496,932
Capital Outlay 5,573,241 677,264 19,310,698
Total Expenditures 5,573,241 7,745,913 42,962,994
Excess (deficiency) of revenues
over expenditures (5,069,036)(1,483,846)(12,381,677)
Other Financing Sources (Uses)
Improvement bonds issued - 6,715,000 6,715,000
Premium on improvement bonds -168,423 168,423
Transfer in 3,802,393 2,227,744 9,870,518
Transfer out - (7,401,357) (8,822,290)
Total Other Financing Sources (Uses)3,802,393 1,709,810 7,931,651
Net change in fund balances (1,266,643)225,964 (4,450,026)
Fund balance (deficit) - January 1 1,162,891 6,713,899 24,242,762
Fund balance (deficit) - December 31 $(103,752)$6,939,863 $19,792,736
The notes to the financial statements are an integral part of this statement.
37
City of Hopkins
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended December 31, 2018
Net change in fund balances total governmental funds $ (4,450,026)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period. 12,148,166
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds 1,977,982
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt uses the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also,
governmental funds report the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are recorded in the statement of net position and amortized
in the statement of activities. This amount is the net effect of these differences in the treatment
of long-term debt related items.(2,922,214)
Some pension and OPEB expenses reported in the Statement of Activities do not require the
use of current financial resources and, therefore are not reported as expenditures
Change in net pension asset/liability, total OPEB liability and related deferred
outflows/inflows of resources 262,880
External revenues and expenditures of the internal service funds reported in the statement of
activities are not reported as revenues and expenditures in governmental funds.(49,200)
Change in net position of governmental activities $ 6,967,588
38
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended December 31, 2018
Original Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $10,832,857 $10,832,857 $10,543,110 $(289,747)
Franchise Fees 290,000 290,000 313,571 23,571
Intergovernmental 1,173,933 1,173,933 1,330,932 156,999
Fees, licenses and permits 594,265 594,265 701,381 107,116
Charges for services 229,050 229,050 378,249 149,199
Fines 184,800 184,800 171,483 (13,317)
Investment earnings 15,000 15,000 4,083 (10,917)
Other miscellaneous revenues 115,450 115,450 49,242 (66,208)
Total Revenues 13,435,355 13,435,355 13,492,051 56,696
Expenditures
General government 2,258,943 2,258,943 2,440,530 (181,587)
Public safety 7,073,402 7,073,402 7,461,507 (388,105)
Health and welfare 198,313 198,313 190,623 7,690
Highways and streets 3,024,838 3,024,838 2,849,197 175,641
Urban redevelopment and housing 107,810 107,810 92,767 15,043
Culture and recreation 690,249 690,249 671,033 19,216
Capital Outlay 66,800 66,800 5,995 60,805
Total Expenditures 13,420,355 13,420,355 13,711,652 (291,297)
Excess (deficiency) of revenues over
expenditures 15,000 15,000 (219,601)(234,601)
Other Financing Sources (Uses):
Transfer out (15,000)(15,000)(15,000)-
Net change in fund blance $-$-(234,601)$(234,601)
Fund balance - January 1 5,852,287
Fund balance - December 31 $5,617,686
The notes to the financial statements are an integral part of this statement.
39
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Economic Development
Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $332,037 $332,037 $479,054 $147,017
Charges for services --1,150 1,150
Investment earnings 30,000 30,000 20,449 (9,551)
Other miscellaneous revenues 40,000 40,000 83,671 43,671
Total Revenues 402,037 402,037 584,324 182,287
Expenditures
Current:
Urban redevelopment and housing 245,702 245,702 1,846,076 (1,600,374)
Total Expenditures 245,702 245,702 1,846,076 (1,600,374)
Net change in fund balance $156,335 $156,335 (1,261,752)$(1,418,087)
Fund balance - January 1, reported 4,458,674
Fund balance - December 31 $3,196,922
The notes to the financial statements are an integral part of this statement.
40
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Arts Center
Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $250,000 $250,000 $244,093 $(5,907)
Intergovernmental 41,000 41,000 34,876 (6,124)
Fees, licenses and permits 1,400 1,400 1,050 (350)
Charges for services 413,506 413,506 364,724 (48,782)
Investment earnings --3 3
Other miscellaneous revenues 182,800 182,800 242,849 60,049
Total Revenues 888,706 888,706 887,595 (1,111)
Expenditures
Current:
Culture and recreation 861,408 861,408 977,330 (115,922)
Capital Outlay 131,500 131,500 47,864 83,636
Total Expenditures 992,908 992,908 1,025,194 (32,286)
Other Financing Sources (Uses)
Transfer in 86,920 86,920 86,920 -
Net change in fund balance $(17,282)$(17,282)(50,679)$(33,397)
Fund balance - January 1, reported (1,180,412)
Fund balance - December 31 $(1,231,091)
The notes to the financial statements are an integral part of this statement.
41
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Tax Increment District Super Valu
Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $2,400,000 $2,400,000 $2,092,747 $(307,253)
Investment earnings --16,912 16,912
Total Revenues 2,400,000 2,400,000 2,109,659 (290,341)
Expenditures
Urban redevelopment and housing 460,540 460,540 54,584 405,956
Total Expenditures 460,540 460,540 54,584 405,956
Other Financing Sources (Uses)
Transfer out (1,179,700)(1,179,700)(1,336,108)(156,408)
Net change in fund balance $759,760 $759,760 718,967 $(40,793)
Fund balance - January 1, reported 5,579,817
Fund balance - December 31 $6,298,784
The notes to the financial statements are an integral part of this statement.
42
43
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2018
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility Pavilion
Nonmajor
Proprietary
Funds Totals
Governmental
Activities
Internal
Service Funds
Assets
Current assets:
Cash and investments $ 198,220 $ 107,322 $ 1,504,820 $79,437 $ 1,908,059 $ 3,797,858 $ 1,605,803
Taxes receivable ---157 -157 -
Accounts receivable 132,047 348,973 15,540 2,923 128,492 627,975 -
Accrued interest receivable -158 -59 -217 2,359
Due from other governments 4,612 --5,900 55,226 65,738 -
Inventory 30,820 3,275 43 --34,138 -
Prepaid expenses -165 -90 14,056 14,311 -
Total current assets 365,699 459,893 1,520,403 88,566 2,105,833 4,540,394 1,608,162
Noncurrent assets:
Capital Assets, non depreciable:
Land 14,097 5,150 26,800 -208,252 254,299 -
Construction in progress 1,398,997 1,982,576 911,861 --4,293,434 -
Capital Assets, depreciable
Building and structures 33,089 --3,272,851 5,561,031 8,866,971 -
Distribution system 16,012,964 10,463,730 12,944,482 5,983,894 -45,405,070 -
Machinery and equipment 400,092 705,947 9,000 290,009 891,049 2,296,097 10,164,846
Less accumulated depreciation (7,192,351)(4,915,494)(4,761,350)(1,722,821)(4,526,924)(23,118,940)(5,447,923)
Total noncurrent assets 10,666,888 8,241,909 9,130,793 7,823,933 2,133,408 37,996,931 4,716,923
Total Assets 11,032,587 8,701,802 10,651,196 7,912,499 4,239,241 42,537,325 6,325,085
Deferred outflows of resources:
Pensions and OPEB 65,414 36,538 8,577 35,535 41,977 188,041 -
Total Deferred Outflows 65,414 36,538 8,577 35,535 41,977 188,041 -
Liabilities
Current liabilities:
Accounts payable 83,746 4,203 338 37,113 114,817 240,217 342,770
Salaries payable 10,464 5,754 1,461 6,891 67,689 92,259 -
Due to other funds 1,046,914 ----1,046,914 -
Due to other governments 1,644 --679 11,827 14,150 -
Compensated absences 17,822 8,479 -33,827 31,502 91,630 884,053
Unearned revenue ---36,224 -36,224 -
Accrued interest payable 28,590 30,401 9,357 56,890 -125,238 -
Total current liabities 1,189,180 48,837 11,156 171,624 225,835 1,646,632 1,226,823
44
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2018
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility Pavilion
Nonmajor
Proprietary
Funds Totals
Governmental
Activities
Internal
Service Funds
Noncurrent liabilities:
Total OPEB liability due within one year 6,411 4,493 626 2,347 4,252 18,129 -
Total OPEB liability due in more than one
year 41,755 30,915 3,540 13,259 34,822 124,291 -
Net pension liability 332,120 180,378 44,747 186,810 212,348 956,403 -
Revenue bonds payable (net of unamortized
discounts and premium)2,784,517 2,215,214 953,903 3,415,734 -9,369,368 -
Toal noncurrent liabilities 3,164,803 2,431,000 1,002,816 3,618,150 251,422 10,468,191 -
Total Liabilities 4,353,983 2,479,837 1,013,972 3,789,774 477,257 12,114,823 1,226,823
Deferred inflows of resources:
Taxes and special assessments ---133 -133 -
Pensions 86,570 47,018 11,664 48,694 55,349 249,295 -
Total Deferred Inflows of Resources 86,570 47,018 11,664 48,827 55,349 249,428 -
Net Position
Net investment in capital assets 7,882,371 6,026,695 8,176,890 4,408,199 2,133,408 28,627,563 4,753,482
Unrestricted (1,224,923)184,790 1,457,247 (298,766)1,615,204 1,733,552 344,780
Total Net Position $6,657,448 $6,211,485 $9,634,137 $4,109,433 $3,748,612 $30,361,115 $5,098,262
The notes to the financial statements are an integral part of this statement.
45
City of Hopkins
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2018
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility Pavilion
Nonmajor
Proprietary
Funds Total
Governmental
Activities
Internal
Service Funds
Operating revenues
Charges for services $ 1,933,698 $ 2,764,350 $ 800,869 $ 392,966 $ 1,249,505 $ 7,141,388 $ 509,703
Other 11,764 15,940 5,736 2,024 130,124 165,588 -
Total operating revenues 1,945,462 2,780,290 806,605 394,990 1,379,629 7,306,976 509,703
Operating expenses
Cost of sales and services 1,098,110 1,954,055 82,885 468,697 669,112 4,272,859 253,827
Administration 209,893 141,625 55,685 5,767 497,557 910,527 6,730
Depreciation 325,897 306,413 274,070 87,099 232,946 1,226,425 856,695
Total operating expenses 1,633,900 2,402,093 412,640 561,563 1,399,615 6,409,811 1,117,252
Operating income (loss)311,562 378,197 393,965 (166,573)(19,986)897,165 (607,549)
Nonoperating revenues (expenses)
Property taxes ---81 -81 -
Miscellaneous revenue 1,047 --204 2,415 3,666 5,870
Investment earnings --4,356 317 8,480 13,153 4,462
Interest/fiscal agent expense (71,065)(74,880)(48,396)(127,615)-(321,956)(1,443)
Intergovernmental grants 958 520 129 539 206,781 208,927 -
Gain (loss) on sale of assets 7,515 ---9,695 17,210 (42,540)
Total nonoperating revenues
(expenses)(61,545)(74,360)(43,911)(126,474)227,371 (78,919)(33,651)
Income (loss) before contributions and
transfers 250,017 303,837 350,054 (293,047)207,385 818,246 (641,200)
Transfers and contributions
Capital contributions --- 5,858,280 - 5,858,280 -
Transfers in 1,040,548 884,032 334,397 -- 2,258,977 592,000
Transfers out (232,476)(163,831)(275,504) (3,202,393)(25,000) (3,899,204)-
Change in net position 1,058,089 1,024,038 408,947 2,362,840 182,385 5,036,299 (49,200)
Net position - January 1, as previously stated 5,638,039 5,214,552 9,228,970 1,760,752 3,591,878 25,434,191 5,147,462
Cumulative effect of a change in accounting principle (38,680)(27,105)(3,780)(14,159)(25,651)(109,375)-
Net position - January 1, as restated 5,599,359 5,187,447 9,225,190 1,746,593 3,566,227 25,324,816 5,147,462
Net position - December 31 $6,657,448 $6,211,485 $9,634,137 $4,109,433 $3,748,612 $30,361,115 $5,098,262
The notes to the financial statements are an integral part of this statement.
46
47
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2018
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Pavilion Funds Totals Service Funds
Cash Flows from Operating Activities
Receipts from customers and users $ 1,937,371 2,684,003 $ 803,551 $ 460,996 $ 1,370,284 $ 7,256,205 $ 21,803
Receipts for interfund services provided - - - - - 487,900
Internal activity-payments to other funds 257,282 - - - - 257,282 (24,056)
Payments to suppliers (777,640)(529,353)(22,906)(267,745)(755,161)(2,352,805) 87,406
Payments to employees (414,787)(1,480,194)(58,009)(171,519)(256,553)(2,381,062) -
Payments for interfund services used (209,893)(141,625)(55,685)(5,767)(94,032)(507,002) 41,381
Net cash provided by (used in) by operating activities 792,333 532,831 666,951 15,965 264,538 2,272,618 614,434
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 958 520 - 539 206,781 208,798 -
Taxes - - - 81 - 81 -
Transfers in 1,040,548 884,032 334,397 5,858,280 - 8,117,257 597,870
Transfers out (232,476)(163,831)(275,504)(3,202,393)(25,000)
Miscellaneous income 1,047 - - 204 2,415 3,666
Net cash provided by (used in) noncapital financing
activities 810,077 720,721 58,893 2,656,711 184,196 8,329,802 597,870
Cash Flows from Capital and Related Financing Activities:
Issuance of debt - - - 3,285,000 - 3,285,000 -
Construction of capital assets (1,126,211)(1,103,554)(456,122)(5,858,281)(188,152)(8,732,320)(821,627)
Proceeds from sales of capital assets 7,515 - 129 - 9,695 17,339 (42,540)
Interest and other payments (75,494)(91,571)(49,268)(73,795) - (290,128)(1,922)
Capital lease payments - - - - - - (52,295)
Bond payments (210,000)(105,000)(115,000)(20,000) - (450,000) -
Net cash provided by (used in) capital and related
financing activities (1,404,190)(1,300,125)(620,261)(2,667,076)(178,457)(6,170,109)(918,384)
Cash Flows From Investing Activities
Interest received - (1) 6,417 317 10,138 16,871 6,094
Net increase (decrease) in cash and cash equivalents 198,220 (46,574) 112,000 5,917 280,415 549,978 300,014
Cash and cash equivalents - January 1 - 138,729 422,290 18,505 671,138 1,250,662 66,191
Cash and cash equivalents - December 31 $ 198,220 $ 92,155 $ 534,290 $ 24,422 $ 951,553 $ 1,800,640 $ 366,205
48
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2018
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Pavilion Funds Totals Service Funds
Reconciliation of Cash and Cash Equivalents at End of Year to
Cash and Investments per Statement of Net Position
Ending cash and cash equivalents per cash flow statement $ 198,220 $ 92,155 $ 534,290 $ 24,422 $ 951,553 $ 1,800,640 $ 366,205
Investments - 15,167 970,530 55,015 956,506 1,997,218 1,239,598
Cash and Investments per Statement of Net Position $ 198,220 $ 107,322 $ 1,504,820 $ 79,437 $ 1,908,059 $ 3,797,858 $ 1,605,803
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ 311,562 $ 378,197 $ 393,965 $ (166,573) $ (19,986) $ 897,165 $ (607,549)
Adjustments to reconcile operating income
(loss) to net cash provided by (used in) operating
activities:
Depreciation expense 325,897 306,413 274,070 87,099 232,946 1,226,425 856,695
(Increase) decrease in:
Accounts receivable (8,091)(96,287)(3,054) 29,782 (9,345)(86,995) -
Due from other funds - - - - - (24,056)
Inventory (4,230) 550 - - (3,680) -
Prepaid expense - 85 - 1,867 (440) 1,512 -
Pensions (deferred outflows)(4,777)(8,153)(2,438)(3,569)(7,748)(26,685)
OPEB (deferred outflows)(6,411)(4,493)(627)(2,347)(4,252)(18,130)
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable (64,441)(65,647)(1,810) 39,247 81,002 (11,649) 389,344
Due to other funds 257,282 - - - - 257,282 -
Due to other governments 270 2,806 - 52 (7,559)(4,431) -
Unearned revenue - - - 36,224 - 36,224 -
Net pension liability (112,595)(47,602)(5,490)(50,048)(63,206)(278,941) -
Total OPEB liability 48,166 35,408 4,166 15,606 39,065 142,411 -
Pensions (deferred inflows) 49,701 31,554 8,169 28,625 24,061 142,110 -
Net cash provided (used) by operating activities $ 792,333 $ 532,831 $ 666,951 $ 15,965 $ 264,538 $ 2,272,618 $ 614,434
The notes to the financial statements are an integral part of this statement.
49
50
NOTES TO THE
FINANCIAL STATEMENTS
51
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
1. SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
The City of Hopkins, Minnesota (the City) is a charter City, which was approved December 2, 1947. The City operates
pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council – Manager form of
government.
The financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles as
applied to governmental units by the Government Accounting Standards Board (GASB). The more significant accounting
policies of the City are described below.
A. REPORTING ENTITY
In accordance with GASB pronouncements, the City’s financial statements include all funds and departments of the
City and its component units, for which the City is considered to be financially accountable. A blended component
unit, although legally separate entity is, in substance, part of the City’s operations and so data from this unit is
combined with data of the primary government. The City’s blended component unit has a March 31 year-end, however
when blended with the City it is shown with a December 31 year-end.
Blended Component Unit
Housing and Redevelopment Authority in and for the City of Hopkins (HRA)
The HRA was created by the City to carry out certain redevelopment projects and low-income rental housing. The
HRA's governing body is the same as the governing body of the primary government in that all members of the Hopkins
City Council are also the Hopkins Housing and Redevelopment Authority Commissioners. The City of Hopkins in its
capacity as the HRA Board of Directors, has operational responsibility for the HRA. Therefore there is a burden
relationship between the primary government and the component unit. The housing activity is supported in part by
federal subsidies. There is an extensive trust agreement between the HRA and HUD regarding the facility. The HRA is
included in the City’s enterprise funds. Separate financials are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., statement of net position and the statement of changes in net position)
report information on all activities of the primary government and its component units. The interfund services provided
and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
52
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at year-end.
Governmental funds are accounted for using the current financial resources measurement focus and the modified
accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become
measurable and available). “Measurable” means the amount of the transaction can be determined and “available”
means collectible within the current period or within sixty days thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental revenues,
charges for services, and investment earnings. Major revenues that are not susceptible to accrual include fees and
miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is
incurred, except for principal and interest on general long-term debt and compensated absences that are recognized
when due and payable.
The City reports the following major governmental funds:
The general fund is the primary operating fund of the City. It is used to account for all financial resources except
those required to be accounted for in another fund.
The economic development special revenue fund accounts for development opportunities of the city. Sources of
funds are derived from the administration of loans and an annual tax levy.
The arts center special revenue fund accounts for the activities of the Hopkins Center for the Arts. Sources of funds
are derived from leases, ticket sales, admission fees, grants and donations.
The tax increment district super valu special revenue fund accounts for the activities of the Super Valu tax
increment development district. Sources of funds are a tax increment levy.
The permanent improvement revolving capital projects fund accounts for resources and accumulated payments for
street improvements funded with bonds and special assessments levied on benefited property.
The pavilion addition fund accounts for the outside contributions received and payments made for the pavilion
addition project.
The City reports the following major proprietary funds:
The water utility fund accounts for the operations of the City-owned water distribution system. The water bonds of
2009A, 2012B and 2013A are included as part of this fund since revenues of the water fund are pledged to pay
principal and interest on this bond.
The sewer utility fund accounts for the operations of the City-owned sewer lift stations and disposal system. The
sewer bonds of 2009A, 2012B and 2013A are included as part of this fund since revenues of the sewer fund are
pledged to pay principal and interest on this bond.
53
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The storm sewer utility fund accounts for the operations and improvements of the storm water drainage system. The
storm water bond issues of 2009A, 2010B, 2012B and 2013A are included as part of this fund since revenues of the
storm sewer fund are pledged to pay principal and interest on these bonds.
The pavilion fund accounts for the operations and improvements of the city owned ice arena. The 2018B Tax
Abatement bonds used for the City's contribution towards the pavilion addition project are included as part of the
fund.
Additionally, the City reports the following fund types:
Governmental Funds
Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that
are legally restricted or committed by Council to expenditures for specified purposes.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment
of, general long-term debt principal, interest, and related costs.
Capital Project Funds - Capital project funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and infrastructure, other than those financed by proprietary
funds or special revenue funds.
Proprietary Funds
Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis, be financed or recovered
primarily through user charges.
Internal Service Funds – Internal service funds are used to account for the financing of goods and services provided
by one department to other departments of the City on a cost-reimbursement basis. Internal service funds are used
for equipment replacement, insurance deductions and employee benefits.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements,
however interfund services provided and used are not eliminated in the process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the City enterprise funds and internal service
funds are charges to customers for sales and service. Operating expenses for enterprise funds and internal service funds
include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, and then use unrestricted resources as they are needed.
54
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
D. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments pursuant to
Minnesota Statutes (see note 4). Earnings from such investments are allocated to the respective funds on the basis of
applicable cash balance participation by each fund. Investments in certificates of deposit with a maturity date of less
than one year at the date of purchase are reported at cost or amortized cost, which approximates fair value. Investments
held longer than one year are reported at fair value, based on quoted market prices.
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which is used
essentially as a demand deposit account. Restricted cash and investments are reported separately on the financial
statement.
E. INTERFUND RECEIVABLES/PAYABLES
Activity between funds that is representative of lending/borrowing arrangements and transactions between funds that
are outstanding at the end of the fiscal year are referred to “due to/from other funds” Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide financial
statements as “internal balances.”
The non-current portion of due from other funds is classified as nonspendable fund balance in the general fund to
indicate that this portion of fund balance is not available for appropriation and is not expendable available financial
resources.
F. INVENTORIES AND PREPAID ITEMS
All inventories are accounted for using the consumption method and are valued at cost using the first-in/first-out (FIFO)
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. Prepaid items are reported using the consumption method and
recorded as expenditures/expenses at the time of consumption.
G. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements and the proprietary fund
financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated capital assets are
recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Assets not being depreciated include land and construction in progress. Buildings, equipment, and infrastructure of the
City and the HRA are depreciated using the straight-line method over the estimated useful lives as follows:
Buildings 30 - 40 years
Mains and Lines 40 - 50 years
Streets 20 - 25 years
Improvements 10 - 20 years
Vehicles 3 - 30 years
Equipment 3 - 20 years
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
H. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources.
This separate financial statement element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until
then. The City has two items that qualify for reporting in this category. It is the deferred charge on refunding reported
in the government-wide statement of net position and the deferred charge for pensions (see Pension section below for
explanation). A deferred charge on refunding results from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding
debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that
time. The City has one item item that qualifies for reporting in this category. It is the deferred charge for pensions (see
Pension section below for explanation). The City also has one type of item, which arises under a modified accrual
basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported
only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources:
property taxes, special assessments, loans and grants. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
I. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Employees hired prior to
August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month of full-time service, instead of
flex leave.
Employees hired prior to August 1, 1998, that have not opted for flex leave, shall be entitled to severance pay, after
completion of five years of continuous City employment. Severance pay is calculated by multiplying the total number
of continuous years in the City employ and/or accumulated sick leave by the daily wage rate prevailing at date of
severance, at one day per year of such employment, to a maximum of 20 days. Such severance money shall be paid in
case of separation caused by death, eligible retirements, or medically attested disability preventing an employee from
performing the major duties of the position or separation for non-disciplinary reasons.
Accumulated vacation, flex and vested severance pay is reported as an expense and an accrued liability as the benefits
accrue to employees in the government-wide and proprietary fund financial statements. A liability for these amounts is
reported in the governmental funds only if benefits have matured as a result of employee resignations and retirements.
The employee benefits internal service fund reports the governmental funds’ liability for compensated absences on the
accrual basis.
J. PENSIONS
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by
PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer
payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense
associated with the City's requirement to contribute to the Hopkins Fire Relief Association, information about the Plan's
fiduciary net position and additions to/deductions from the Hopkins Fire Relief Association Plan's fiduciary net position
have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including
56
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
K. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB, and OPEB
expense, the City recognizes payments when due and payable in accordance with the benefit terms. The City's benefit
payments consist of the implicit rate subsidy, and partially subsidized premiums for retirees hired before July 1, 1993.
L. LONG-TERM OBLIGATIONS
In the government-wide financial statements, and proprietary fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts, amortized over the life of the bonds.
Bonds payable are reported net of the applicable bond premium or discount.
In the governmental fund financial statements bond premiums and discounts, as well as bond issuance costs are
recognized during the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
M. NET POSITION/FUND EQUITY
Net position represents the difference between assets and liabilities in the government-wide financial statements. Net
position invested in capital assets consists of capital assets net of accumulated depreciation, reduced by the outstanding
balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the
government-wide financial statements when there are limitations imposed on its use through external restrictions
imposed by creditors, grantors, laws or regulations of other governments.
In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for
which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – portions of fund balance related to prepaids, inventories, long-term receivables, and land held for
resale.
Restricted – funds are constrained by external parties (statute, grantors, bond agreements, etc.).
Committed – fund constraints are established and modified by a resolution approved by the City Council.
Assigned – consists of internally imposed constraints. These constraints are established by the City Council and/or
management. The City Council also delegates the authority to assign fund balance to the Finance Director per City
Legislative Policy 6-G, Fund Balance.
Unassigned – is the residual classification for the General Fund and also reflects negative residual amounts in other
funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is
the City’s policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it
is the City’s policy to use committed first, then assigned, and finally unassigned amounts.
57
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund of a
minimum of 5 months or 42% of the previous year’s budgeted expenditures.
N. 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.
O. PROPERTY TAXES
Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County (the
County) for collection in the following year. In the State of Minnesota, counties act as collection agents for all property
taxes. The County spreads all levies over assessable property. Such taxes become a lien on January 1 and are recorded
as receivables by the City at that date.
Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal property
taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County provides tax
settlements to cities and other local governments three times a year, on or before January 25, July 5 and December 5.
In the governmental fund financial statements property taxes are accrued and recognized as revenue for collections
within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as delinquent taxes
receivable, and are fully offset by deferred inflows of resources because they are not available to finance current
expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be
material.
P. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Commercial Development Revenue Notes/Bonds in accordance with the
Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the
public interest. The obligations are secured by the property financed and are payable solely from payments received on
the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers from
the bond holder to the private-sector entity served by the debt issuance. Neither the City, the State, nor any political
subdivision thereof is obligated in any manner for repayment of the obligations. Accordingly, the bonds are not
reported as liabilities in the accompanying financial statements. As of December 31, 2018, there were 7 notes/bond
issues outstanding, with an aggregate principal amount payable of approximately $40 million.
Q. USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
58
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT- WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances – total governmental funds and change in net position of governmental activities
as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental
funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.” The details of this difference are as follows:
Capital outlay $ 14,100,628
Depreciation expense (1,952,844)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position
of governmental activities $ 12,147,784
Another element of that reconciliation explains that, “the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt uses financial resources of the
governmental funds. Neither of these transactions has any effect on the net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.” The details of these differences are as follows:
Principal repayments $ (3,890,000)
Issuance of general obligation bonds 6,715,000
Add premium 168,423
Less deferred loss on refunding debt -
Amortization of deferred losses on refunding 40,778
Amortization of bond premium and discount (176,328)
Prior year interest expense (662,882)
Accrue interest expense for current year 727,223
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities 2,922,214
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds except the Section 8 and Hennepin County CDBG special revenue funds, the debt service funds
and the capital projects funds, which are not budgeted. A capital improvement plan is reviewed annually by the City
Council for the capital projects funds and utility funds. However, appropriations for major projects are not adopted
until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. All
annual appropriations lapse at fiscal year end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements and set forth
in Section 7.04 of the City Charter.
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
1. The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed budget
and an explanatory budget message in a form and manner as prescribed by the City Charter.
2. The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer comments.
3. The Council shall adopt the tax levy by resolution no later than a December date, which is annually established by
law for the county auditor to levy taxes. The budget shall set forth the total for each budgeted fund with such
segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget
control.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any
revisions that alter the total expenditures of any fund must be approved by the City Council and are limited to the
amount revenues exceed the budgets or authorize the transfer of sums from unexpended balances to other purposes.
Budgeted expenditure appropriations lapse at year-end. The level of legal control is at the fund level.
5. The Council made no supplemental budgetary appropriation throughout the year.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2018, actual expenditures exceeded the budgeted amounts in the following funds:
General Fund $ 291,297
Economic Development 1,600,374
Arts Center 32,286
State Chemical Assessment Team 1,646
Parking 23,566
Hopkins Race & Equity Initiative 7,255
Depot Coffee House 755
Tax Increment District Entertainment District 418
Tax Increment District Oakes of Mainstreet 8,959
Tax Increment District Marketplace & Main 64,974
Tax Increment District Moline 82,806
These over expenditures were funded by greater than anticipated revenues of the General, Economic Development,
State Chemical Assessment Team, Hopkins Race & Equity Initiative, Tax Increment Entertainment District, Tax
Increment District Oakes of Mainstreet, and Tax Increment District Moline funds, from fund balance in the General,
Economic Development, Parking, Hopkins Race & Equity Initiative, and Tax Increment District Oakes of Mainstreet
funds, and by future revenues in the State Chemical Assessment Team, Depot Coffee House and Arts Center funds.
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process are
funds that are completely reimbursable from the federal and state governments. The Community Development Block
Grant Funds is a non-budgeted fund.
C. FUND BALANCE DEFICITS
At December 31, 2018, the following funds had deficit fund balances or net position. These deficits will be funded
through future tax levies, contributions, grants, charges for services or developer payments:
60
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Art Center $ 1,231,091
Permanent Improvement Revolving 925,676
State Chemical Assessment Team 20,130
Depot Coffee House 64,538
Tax Increment District Sonoma 24,962
5th Avenue Flats 393,831
Tax Increment District Marketplace & Main 203,833
Tax Increment Revenue Bonds of 2016D 1,444
Capital Improvement 404,874
Municipal State Aid Construction 650,591
D. NET POSITION RESTRICTED BY ENABLING LEGISLATION
The government-wide statement of net position reports $6,956,130 in restricted net position for economic development,
of which $6,923,908 is restricted by enabling legislation. The remaining $32,222 is CDBG funds restricted by outside
parties.
4. DEPOSITS AND INVESTMENTS
As of December 31, 2018 the City had the following deposits and investments:
Investment Type Fair Value
Government sponsored entities $ 9,676,278
Municipal obligations 1,259,762
Negotiable certificates of deposit 1,433,602
Money market mutual fund 13,439,725
Deposits 586,466
Total fair value cash and investments $ 26,395,833
Interest rate risk – Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in
interest rates. In accordance with City of Hopkins Legislative Policy 6-B, Standards of Investments, the city manages its
exposure to declines in fair values by structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.
At December 31, 2018 the City had the following investment maturities:
Investment Maturities (in Years)
Less No
Total than One 1-5 6-10 Maturity
Investment Type:
Government sponsored entities
FHLM $ 4,996,070 $ 4,996,070 $ - $ - $ -
FHLB 2,723,175 2,723,175 - - -
U.S. Treasury Note 1,957,033 1,957,033 - - -
Municipal obligations 1,259,762 653,308 507,980 98,474 -
Negotiable certificates of deposit 1,433,602 1,433,602 - - -
Money market mutual fund 13,439,725 - - - 13,439,725
Deposits 586,466 - - - 586,466
$ 26,395,833 $ 11,763,188 $ 507,980 $ 98,474 $ 14,026,191
61
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations.
Credit risk is measured using credit quality ratings of investments in debt securities as described by nationally recognized
rating agencies such as Standard & Poor’s and Moody’s. According to the City’s investment policy commercial paper
shall be restricted to issues, which mature in 270 days or less with a rating of A-1 (Moody’s), P-1 (Standard & Poor’s) or
F-1 (Fitch) among at least two of the three rating agencies.
The City is authorized by Minnesota Statutes to invest in the following:
(a) Direct obligations or obligations guaranteed by the United States or its agencies
(b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose
only investments are in securities described in (a) above
(c) General obligations in the State of Minnesota or any of its municipalities
(d) Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality,
and maturity in 270 days or less; and
(f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries
(g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with
capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
The following table lists the credit quality ratings per Moody’s and/or Standard and Poor’s and/or Fitch of the City’s
investments at December 31, 2018.
Quality Ratings
Not
Total AAA AA Rated
Investment Type:
Government securities
FHLM $ 4,966,070 $ 4,966,070 $- $ -
FHLB 2,723,175 2,723,175 - -
U.S. Treasury Note 1,957,033 1,957,033 - -
Municipal obligations 1,259,762 1,000,409 259,353 -
Negotiable certificates of deposit 1,433,602 - - 1,433,602
Money market mutual fund 13,439,725 - - 13,439,725
Deposits 586,466 - - 586,466
$ 26,365,833 $ 10,646,687 $ 259,353 $ 15,459,793
Custodial credit risk
Deposits – For deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the
legal investments described above, as well as certain first mortgage notes, and certain other state or local government
obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or
in a financial institution other than that furnishing the collateral. At December 31, 2018 the City had no deposits that were
uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the City’s agent in the
City’s name.
Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside party. All
investments held by the City are insured or registered or are held by the City or its agent in the City’s name. The City has
no investments that are uninsured or unregistered nor are any investments held by a counterparty or a counterparty's trust
department or agent that is not in the city's name.
62
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Concentration of credit risk – This is the risk associated with investing a significant portion of the City’s investments
(considered 5% or more) in the securities of a single issuer, excluding U.S. explicitly guaranteed investments (Treasuries),
investment pools, and mutual funds. At December 31, 2018, the City had investments with FNMA and FHLB which
individually comprised more than 5% of the City's total investments. Investments with FNMA and FHLB were 19% and
11%, respectively, of the City's total investments.
Fair Value Measurement – The City used fair value measurements to record fair value adjustments to certain assets and
liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value,
establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to
measure fair value, and requires expanded disclosures about fair value measurements.
In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the
valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is
based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and
liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation
techniques as follows:
Level 1 - Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active
markets accessible at the measurement date of identical financial assets and liabilities.
Level 2 - Financial assets and liabilities are values based on quoted prices for similar assets, or inputs that are
observable, either directly or indirectly for substantially the full term through corroboration with observable
market data.
Level 3 - Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset,
inputs that reflect the reporting entity's own assumptions about the assumptions market participants and would
use in pricing the assets.
As of December 31, 2018 the City's investments fall into the following categories of fair value:
Level 1 Level 2 Level 3 Total
U.S. Government Securities $- $ 9,676,278 $ - $ 9,676,278
Municipal Obligations - 1,259,762 - 1,259,762
Negotiable Certificates of Deposit - 1,433,602 - 1,433,602
$- $ 12,369,642 $ - 12,369,642
Investments measured at amortized cost 14,026,191
$ 26,395,833
63
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2018 were as follows:
Beginning Ending
Balance Increase Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated
Land $ 6,157,677 $- $- $- $ 6,157,677
Construction in progress 13,453,194 13,894,801 - (5,830,991) 21,517,004
Total not being depreciated 19,610,871 13,894,801 - (5,830,991) 27,674,681
Capital assets, being depreciated
Buildings 20,685,855 - - - 20,685,855
Other Improvements 55,162,090 151,975 - 5,830,991 61,145,056
Vehicles 4,894,890 479,329 (342,420)- 5,031,799
Machinery & equipment 7,057,731 515,818 (89,779)- 7,483,770
Total being depreciated 87,800,566 1,147,122 (432,199) 5,830,991 94,346,480
Less accumulated depreciation
Buildings (7,695,956) (512,730) - - (8,208,686)
Other Improvements (19,399,851) (1,378,462) - - (20,778,313)
Vehicles (2,036,411) (626,446) 280,893 - (2,381,964)
Machinery & equipment (4,491,818) (291,901) 31,645 - (4,752,074)
Total accumulated depreciation (33,624,036)(2,809,539) 312,538 - (36,121,037)
Total capital assets, being
depreciated, net 54,176,530 (1,662,417) (119,661) 5,830,991 58,225,443
Governmental activities capital
assets, net $ 73,787,401 $ 12,232,384 $ (119,661) $- $ 85,900,124
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type Activities:
Capital assets, not being depreciated
Land $ 254,299 $- $- $- $ 254,299
Construction in progress 6,088,591 2,582,697 - (4,377,854) 4,293,434
Total not being depreciated 6,342,890 2,582,697 - (4,377,854) 4,547,733
Capital assets, being depreciated
Buildings 8,310,540 - - 556,431 8,866,971
Infrastructure 20,246,803 - - - 20,246,803
Other Improvements 15,410,757 5,926,088 - 3,821,423 25,158,268
Vehicles 1,400,902 188,035 (242,657)- 1,346,280
Machinery & equipment 914,318 35,500 - - 949,818
Total being depreciated 46,283,320 6,149,623 (242,657) 4,377,854 56,568,140
Less accumulated depreciation
Buildings (5,328,500) (239,646) - - (5,568,146)
Infrastructure (13,027,975) (408,767) - - (13,436,742)
Other Improvements (2,593,003) (340,555) - - (2,933,558)
Vehicles (546,974) (200,246) 242,657 - (504,563)
Machinery & equipment (638,722) (37,211) - - (675,933)
Total accumulated depreciation (22,135,174)(1,226,425) 242,657 - (23,118,942)
Total capital assets, being
depreciated, net 24,148,146 4,923,198 - 4,377,854 33,449,198
Business-type activities capital
assets, net $ 30,491,036 $ 7,505,895 $- $- $ 37,996,931
64
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 53,818
Public safety 198,987
Highways and streets 1,460,660
Culture and recreation 239,379
Capital assets held by the government's internal service funds are 856,695
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities $ 2,809,539
Business-type activities:
Water $ 325,897
Sewer 306,413
Storm Sewer 274,070
Refuse 59,147
Pavilion/Ice arena 87,099
Housing and Redevelopment Authority 173,799
Total depreciation expense - business-type activities $ 1,226,425
Construction commitments
The City has active construction projects as of December 31, 2018. The projects include streets and other improvements.
The City’s commitment with contractors related to these projects is $4,061,218.
On October 15, 2013 the City Council entered into a 14 year maintenance agreement with SEH Design/Build, Inc. for
inspection, maintenance, cleaning and painting of the city's two water towers. The contract commitment totals $1,529,400
and will be paid in annual installments beginning in 2014.
6. INTERFUND RECEIVABLES AND PAYABLES
The following funds had amounts receivable from other funds, and the respective funds had equal amounts payable to
other funds at December 31, 2017:
Due from Other Funds
Economic
General Development Total
Due to other funds:
Non-major governmental $ 463,935 $ 853,515 $ 1,317,450
Arts Center 1,200,071 - 1,200,071
Water 1,046,914 - 1,046,914
Total due to other funds $ 2,710,920 $ 853,515 $ 3,564,435
The interfund receivables and payables are to eliminate negative cash between funds and to allow for development loans
or to facilitate a project or operations of another fund.
65
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31, 2018:
Transfers in
Permanent
Art Improvement Pavilion Non-major Storm
Center Revolving Addition Governmental Water Sewer Sewer Total
Transfers out:
General $ - $ - $ - $ 15,000 $ - $ - $ - $ 15,000
Permanent
Improvement
Revolving - - - 69,825 - - - 69,825
Tax Increment
Super Valu - - - 1,336,108 - - - 1,336,108
Water - - - 232,476 - - - 232,476
Sewer - - - 163,831 - - - 163,831
Storm Sewer - - - 275,504 - - - 275,504
Pavilion - - 3,202,393 - - - - 3,202,393
Non-major
governmental 86,920 3,753,461 600,000 702,000 1,040,548 884,031 334,397 7,401,357
Non-major
business-type - - - 25,000 - - - 25,000
Total transfers in $ 86,920 $ 3,753,461 $ 3,802,393 $ 2,819,744 $ 1,040,548 $ 884,031 $ 334,397 $ 12,721,494
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
Non-routine transfers include the following:
1) Annual transfers from water, sewer, storm sewer and refuse funds for lease payments on new public works
facility.
2) An annual transfer, from the non-major governmental Communication funds to the Art Center Fund totaling
$86,920 to pay the original debt for building the facility.
3) Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments.
4) Transfers from non-major governmental funds to Permanent Improvement Revolving, water, sewer and storm
storm sewer and non-major governmental funds for bond proceeds.
5) Transfers from water, sewer and storm sewer to non-major governmental debt funds for bond payment
contributions.
6) Transfer from nonmajor governmental funds to Pavilion Addition fund for capital contribution.
8. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are
issued as 20-year serial bonds.
General Obligation Bonds
On May 24, 2018 the City issued $6,715,000 General Obligation Bonds series 2018A for street reconstruction
projects and equipment; and $3,285,000 General Obligation Tax Abatement Bonds series 2018B for Pavilion
upgrades.
66
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Governmental activities 0.35 – 4.00% $ 41,110,000 $ 38,420,000
Governmental activities – refunding 0.50 – 4.80% 26,030,000 18,865,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2019 $ 3,880,000 $ 1,611,708
2020 4,555,000 1,443,908
2021 4,695,000 1,320,570
2022 4,535,000 1,199,797
2023 4,595,000 1,081,686
2024-2028 19,265,000 3,765,022
2029-2033 14,445,000 1,134,995
2034-2036 1,315,000 38,508
$ 57,285,000 $ 11,596,194
The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City,
and repayment monies are generated by the collection of special assessments and general levies.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Street Improvements 0.50 – 3.125% $ 9,810,000 $ 6,845,000
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2019 $ 635,000 $ 158,646
2020 645,000 145,188
2021 660,000 130,460
2022 645,000 114,840
2023 665,000 98,965
2024-2028 3,155,000 247,141
2029-2030 440,000 11,109
$ 6,845,000 $ 906,349
67
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
Revenue Bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service.
Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Original Amount Current Amount
Water construction & replacement 2.0 – 4.0% $ 820,000 $ 430,000
Water construction & replacement 2.0 – 2.2% 760,000 505,000
Water construction & replacement 2.0 - 2.5% 860,000 655,000
Water construction & replacement 0.02 930,000 875,000
Water construction & replacement 3.0 - 4.0% 272,650 272,650
Sanitary sewer construction & replacement 2.0 – 4.0% 1,020,000 535,000
Sanitary sewer construction & replacement 2.0 – 2.2% 170,000 110,000
Sanitary sewer construction & replacement 2.0 - 2.5% 490,000 370,000
Sanitary sewer construction & replacement 3.0 - 4.0% 1,119,300 1,119,300
Storm sewer – refunding 0.5 – 2.9% 875,000 400,000
Storm sewer construction & replacement 2.0 – 2.2% 320,000 210,000
Storm sewer construction & replacement 2.0 - 2.5% 380,000 290,000
Storm sewer construction & replacement 3.0 - 4.0% 43,050 43,050
Pavilion equipment certificates 2.0 – 2.0% 175,000 80,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2019 $ 535,000 $ 158,913
2020 545,000 144,201
2021 565,000 128,511
2022 570,000 112,281
2023 580,000 95,629
2024-2028 2,170,000 272,840
2029-2033 930,000 54,563
$ 5,895,000 $ 966,938
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2018, the debt limit for the City is $57,694,845. Of the total debt, $34,730,000 of general obligation
and revenue bonds is applicable to the limit. The legal debt margin is $22,964,845.
68
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2018, was as follows:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds $ 16,395,000 $- $ 1,210,000 $ 15,185,000 $ 1,300,000
General obligation bonds 34,160,000 6,715,000 2,060,000 38,815,000 2,580,000
Total general obligation bonds 50,555,000 6,715,000 3,270,000 54,000,000 3,880,000
Special assessment bonds 7,465,000 - 620,000 6,845,000 -
Less deferred amounts
For issuance discounts (35,054)- 6,527 (28,527) -
For issuance premiums 2,308,730 168,422 182,854 2,294,298 -
Total bonds payable 60,293,676 6,883,422 4,079,381 63,110,771 3,880,000
Compensated absences 834,949 1,002,667 953,563 884,053 884,053
Capital lease payable 52,675 - 52,675 - -
Governmental activity
long-term liabilities $ 61,181,300 $ 7,886,089 $ 5,085,619 $ 63,994,824 $ 4,764,053
Business-type activities:
Bonds payable:
Revenue bonds $ 6,345,000 $ 3,285,000 $ 450,000 $ 9,180,000 $ 535,000
Less deferred amounts
For issuance discounts (3,642)- 716 (2,926) -
For issuance premiums 158,932 51,744 18,382 192,294 -
Total bonds payable 6,500,290 3,336,744 469,098 9,369,368 535,000
Compensated absences 82,043 82,002 72,415 91,630 91,630
Business-type activity
long-term liabilities $ 6,582,333 $ 3,418,746 $ 541,513 $ 9,460,998 $ 626,630
For the governmental activities, compensated absences liability is generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue funds.
For the governmental activities, the OPEB and pension liabilities are generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue funds.
69
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
10. FUND BALANCES
At December 31, 2018, the City had various fund balances through legal restriction and City Council
authorization. Major fund balance appropriations at December 31, 2018 are shown on the various balance sheets
as segregations of the fund balance. The fund balances are as follows:
Total Nonspendable Restricted Committed Assigned Unassigned
General Fund $ 5,179,824 $- $ - $ - $ - $ 5,179,824
Inventories 76,954 76,954 - - - -
Prepaids 115,414 115,414 - - - -
Community development 245,494 - - - 245,494 -
Total General Fund 5,617,686 192,368 - - 245,494 5,179,824
Economic Development
Economic Development 3,196,922 - - 3,196,922 - -
Total Economic Development Fund 3,196,922 - - 3,196,922 - -
Arts Center
Deficit Fund Balance (1,231,091) - - - - (1,231,091)
Total Arts Center Fund (1,231,091) - - - - (1,231,091)
Tax Increment District Super Valu
Property held for resale 321,719 - 321,719 - - -
Tax Increment 5,977,065 - 5,977,065 - - -
Total Tax Increment District
Super Valu 6,298,784 - 6,298,784 - - -
Permanent Improvement Revolving
Deficit Fund Balance (925,676) - - - - (925,676)
Total Permanent Improvement
Revolving (925,676) - - - - (925,676)
Pavilion Addition
Deficit Fund Balance (103,752) - - - - (103,752)
Total Pavilion Addition (103,752) - - - - (103,752)
Nonmajor Governmental Funds
Rehab loans 23,829 - 23,829 - - -
Debt service 6,537,691 - 6,537,691 - - -
Tax increment 633,517 - 633,517 - - -
Park improvements 78,084 - 78,084 - - -
Parking improvements 136,378 - - 136,378 - -
Communications 543,368 - 154,005 389,363 - -
Race and Equity Initiative 1,849 - 1,849 - - -
Capital Asset Improvement 98,489 - 98,489
Deficit fund balance (1,113,342) - - - - (1,113,342)
Total Nonmajor Funds 6,939,863 - 7,527,464 525,741 - (1,113,342)
Total Fund Balances $ 19,792,736 $ 192,368 $ 13,826,248 $ 3,722,663 $ 245,494 $ 1,805,963
70
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
11. PENSION PLAN OBLIGATIONS
1. Defined Benefit Pension Plans - Statewide
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are
established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined
benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code.
1.General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan. General
Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social
Security.
2. Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by local relief
associations, now covers all police officer and firefighters hired since 1980. Effective July 1, 1999, the Police and
Fire Plan also covers police officers and firefighters belonging to local relief associations that elected to merge with
and transfer assets and administration.
Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can
only be modified by the state legislature. Vested, terminated employees who are entitled to benefits, but are not
receiving them yet, are bound by the provision in effect at the time they last terminated their public service.
1. General Employees Plan Benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and
years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic
Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level
accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average
salary for each of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7% for each remaining
year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for
Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available
when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989,
normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit receipients each January. Increases are related to the funding ratio of the plan.
If the General Employees Plan is at least 90 percent funded for two consecutive years, benefit recipients are given a 2.5
percent increase. If the plan has not exceeded 90 percent funded, or have fallen below 80 percent, benefit recipients are
given a one percent increase. A benefit recipient who has been receiving a benefit for at least 12 full months as of June
30, will receive a full increase. Member receiving benefits for at least one month but less than 12 full months a of June
30, will receive a pro rata increase.
71
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
2. Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for Police and Fire
Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty
years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire
Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal
at least 90.
Benefit increases are provided to benefit recipients each January. Police and Fire Plan benefit recipients receive a
future annual 1.0 percent increase. An annual adjustment will equal 2.5 percent any time the plan exceeds a 90 percent
funded ratio for two consecutive years. If the adjustment is increasd to 2.5 percent and the funded ratio falls below 80
percent for one year or 85 percent for two consecutive years, the post-retirement benefit increase will be lowered to one
percent. A benefit recipient who has been receiving a benefit for at least 12 full months as of June 30 will receive a full
increase. Member receiving benefits for at least one month but less than 12 full months as of June 30 will receive a pro
rata increase. For retirements after May 31, 2014, the first increase will be delayed two years.
B. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
1. General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50%, respectively, of their annual covered salary in calendar
year 2018. The City was required to contribute 7.50% for Coordinated Plan members in calendar year 2018. The
City’s contributions to the General Employees Fund for the year ended December 31, 2018, were $447,696. The
City’s contributions were equal to the required contributions as set by state statute.
2. Police and Fire Fund Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2018. The City was
required to contribute 16.20% of pay for Police and Fire Fund members in calendar year 2018. The City’s
contributions to the Police and Fire Fund for the year ended December 31, 2018, were $488,856. The City’s
contributions were equal to the required contributions as set by state statute.
C. Pension Costs
1. General Employees Fund Pension Costs
At December 31, 2018, the City reported a liability of $4,499,095 for its proportionate share of the General Employees
Fund's net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million to the fund in 2018. The State of Minnesota is considered a non-employer contributing
entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s
proportionate share of the net pension liability associated with the City totaled $147,655. The net pension liability was
measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined
by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017,
through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating
72
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
employers. At June 30, 2018, the City’s proportion was .0811%, which was an increase of .0005% from its proportion
measured as of June 30, 2017.
For the year ended December 31, 2018, the City recognized pension expense of $394,162 for its proportionate share of
the General Employee Fund’s pension expense. In addition, the City recognized an additional $12,976 as pension
expense for its proportionate share of the state of Minnesota's contribution of $16 million to the General Employees
Fund during the 2018 calendar year.
At December 31, 2018, the City reported its proportionate share of the General Employees Fund’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Description
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual economic
experience
$ 119,084 $ 131,219
Changes of assumptions 429,778 505,521
Net difference between projected and actual earnings on
pension plan investments
-459,736
Changes in proportion 25,438 76,250
City contributions subsequent to the measurement date 224,992
Total $ 799,292 $ 1,172,726
A total of $224,992 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year Ended June 30
2019 $ 126,696
2020 (273,810)
2021 (357,410)
2022 (93,904)
2023 -
Thereafter -
2. Police and Fire Fund Pension Costs
At December 31, 2018, the City reported a liability of $3,110,289 for its proportionate share of the Police and Fire
Fund’s net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s
proportion of the net pension liability was based on the City’s contributions received by PERA during the
measurement period for employer payroll paid dates from July 1, 2017, through June 30, 2018, relative to the total
employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportion
was .2918%, which was an increase of .0118 from its proportion measured as of June 30, 2017.
For the year ended December 31, 2018, the City recognized pension expense of $404,724 for its proportionate share
of the PEPFF’s pension expense.The City also recognized $26,262 for the year ended December 31, 2018, as a
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on
behalf contribution to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
73
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual economic
experience
$ 125,361 $ 763,032
Changes of assumptions 3,866,861 4,578,750
Net difference between projected and actual earnings on
pension plan investments
-651,459
Changes in proportion 239,857 3,600
City contributions subsequent to the measurement date 247,133 -
Total $ 4,479,212 $ 5,996,841
A total of $247,133 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Year Ended June 30
2019 $ (21,068)
2020 (165,487)
2021 (394,612)
2022 (1,208,963)
2023 25,368
Thereafter -
D. Actuarial Assumptions
The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial
assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's
experience. Cost of living benefit increases for retirees are assumed to be 1.25 percent per year for the General
Employees Plan and 1.0 percent per year for the Police and Fire Plan.
Actuarial assumptions used in the June 30, 2018, valuation were based on the results of actuarial experience studies.
The most recent six-year experience study in the General Employees Plan was completed in 2015. The most recent
four-year experience study for Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions occurred in 2018:
74
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
General Employees Plan
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed post-retirement benefit increase was changed from 1.0 percent per year through 2044 and 2.5
percent per year thereafter to 1.25 percent per year.
Police and Fire Fund
The mortality projection scale was changed from MP-2016 to MP-2017.
As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through
2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness
on a regular basis of the long-term expected rate of return on a regular basis using a building-block method in which
best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are
combined to produce an expected long-term rate of return by weighting the expected future rates of return by the
target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each
major asset class are summarized in the following table:
Asset Class Target Allocation Long-Term Expected Real
Rate of Return
Domestic Stocks 36%5.10%
International Stocks 17%5.30%
Bonds (Fixed
Income)
20%0.75%
Alternative Assets
(Private Markets)
25%5.90%
Cash 2%-%
Total 100%
E.Discount Rate
The discount rate used to measure the total pension liability in 2018 was 7.5%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members and employers will be made at rates set in
Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund was
projected to be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments
to determine the total pension liability.
75
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
F.Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in,
calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share
of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one
percentage point higher than the current discount rate:
Sensitivity of Net Pension Liability at Current Single Discount Rate
General Employees Fund Police and Fire Fund
1% Lower 6.5% $ 7,311,606 6.5% $ 6,668,651
Current Discount Rate 7.5% $ 4,499,095 7.5% $ 3,110,289
1% Higher 8.5% $ 2,177,448 8.5% $ 167,668
G. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA
financial report that includes financial statements and required supplementary information. That report may be
obtained on the Internet at www.mnpera.org.
(remainder of this page left blank intentionally)
76
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
2. Hopkins Fire Relief Association (HFRA)
A. Plan Description
Firefighters of the City of Hopkins are members of the Hopkins Fire Department Relief Association. The
Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The
plan was established in 1909 and is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and
the Association’s by-laws. It is governed by a Board of Trustees made up of six members elected by the members
of the Association for three year terms, and the Mayor, City Clerk and Fire Chief, who serve as ex-officio voting
members of the Board of Trustees. As of December 31, 2017, membership includes 36 active participants and 14
vested terminated employees entitled to benefit but not yet receiving them
The Association issues a publically available financial report that includes financial statements and required
supplementary information of the Hopkins Fire Relief Association. That report may be obtained by writing to the
Hopkins Fire Relief Association, 1010 First St S, Hopkins, MN 55343.
For financial reporting purposes, the Association’s financial statements are not included with the City financial
statements because the Association is not a component unit of the City. The Association does not have any
component units.
B. Benefits Provided
The Association operates under a defined benefit plan. The pension liability is calculated by the number of active
service years multiplied by a set benefit level. The Association’s current level is at $6,900 per active year. According
to the bylaws of the Association and pursuant to Minnesota statute 424A.02, subdivisions 2 and 4, members who retire
with less than 20 years of service and have reached the age of 50 years and have completed at least ten years of active
membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member’s
service pension for the completed years of service times the applicable non-forfeitable percentage of pension. The
defined retirement benefits are based on members’ years of service. Vesting begins after the 10th year of service with a
60% benefit increasing by 4% per year to 100% after the 20th year of service.
If a member of the Association shall become totally and permanently disabled, with a service related disability (injured
in the line of duty) to the extent that a physician or surgeon acceptable to the Board shall certify that such disability
will permanently prevent said member from performing said member’s duties in the Department, the Association shall
pay to such member the sum of the current pension amount for each year and fractions of a year that the member has
served as an active member of the Department, without regard to minimum or partial vesting requirements. If a
member who has received such a disability pension should subsequently recover and return to active duty in the
Department, any amount paid to said member as a disability pension shall be deducted from said member’s service
pension.
Upon the death of any member of the Association who is in good standing at the time of said member’s death, the
Association shall pay to the surviving spouse, if any, and if there is no surviving spouse, to child or children, if any,
and if no child or children survive, to the estate of such deceased member, the credited sum of said member’s pension.
Subsequent to the measurement date of the pension liability (December 31, 2017) and prior to the City's December 31,
2018 year end, in June of 2018, the Association increased the benefit level from $6,900 to $7,300.
77
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
C. Contributions
Minnesota Statues Chapter 424A.093 specifies minimum support rates required on an annual basis. The significant
actuarial assumptions used to compute the municipal support are the same as those used to compute the accrued
pension liability. The association is comprised of volunteers; therefore, there are no payroll expenditures (i.e. there are
no covered payroll percentage calculations). The minimum contribution from the City of Hopkins and state aid is
determined as follows:
The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to
the City $104,749 in fire state aid and $2,000 in supplemental benefit reimbursements paid by the City to the Relief
Association for the year ended December 31, 2017. Required employer contributions are calculated annually based
on statutory provisions. The City’s statutorily-required contribution to the plan for the year ended December 31, 2017
was $37,000.
The City's statutorily-required contribution to the plan for the year ended December 31, 2018 was $40,000.
D. Pension Costs
At December 31, 2018, the City reported an asset of $814,900 for the Association’s net pension asset. The net pension
asset was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of January 1, 2017.
As a result of its requirement to contribute to the Relief Association, the City recognized fire expense of ($19,761) for
the year ended December 31, 2018. At December 31, 2017, the City reported deferred outflows of resources and
deferred inflows of resources from the following sources:
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual economic
experience
$-$ 196,580
Changes of assumptions 62,662 -
Net difference between projected and actual earnings on
pension plan investments
-52,790
City contributions subsequent to the measurement date 40,000 -
Total $ 102,662 $ 249,370
78
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
The City contributions to the Association subsequent to the measurement date of $40,000, reported as deferred
outflows of resources, will be recognized as a reduction of the net pension liability in the year ended December 31,
2019. Other amounts reported as deferred outflows and inflows of resources related to the Association’s pension will
be recognized in pension expense as follows:
Year Ended December 31
Pension Expense
Amount
2019 $ 18,135
2020 (7,434)
2021 (74,617)
2022 (78,153)
2023 (22,320)
Thereafter (22,319)
E.Actuarial Assumptions
The actuarial total pension liability was determined as of December 31, 2017, using the following actuarial
assumptions, applied to all periods included in the measurement:
ASSUMPTIONS FROM ACTUARIAL REPORT
Valuation Date 1/1/2017
Acruarial Cost Method Entry Age Normal
Amortization Method Level Dollar Closed
Actuarial Assumptions:
Discount Rate 6.25%
Investment Rate of Return 6.25%
20-Year Municipal Bond Yield 4.00%
Age of Service Retirement Age 50
Mortality N/A
Disability None
Withdraway None
Percent Married N/A
Age Difference N/A
Form of Payment Lump Sum
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class. These asset class estimates are combined to produce the
portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the
expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by
adding expected inflation.
79
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
The best-estimate of expected future real rates of return were developed by aggregating data from several published
capital market assumption surveys and deriving a single best-estimate based on the average survey values. These
capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated
future returns. The expected inflation assumption was developed based on an analysis of historical experience blended
with forward-looking expectations available in market data.
Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan's
asset allocation as of December 31, 2017 are summarized in the following table:
Allocation at Long-Term
December 31,Expected Expected Nominal
Asset Class 2017 Portfolio Weight Rate of Return
Cash 6.16%7.00%2.25%
Fixed Income 11.08%22.00%3.60%
Equities 82.76%69.00%7.50%
Other 0.00%2.00%6.00%
Total Portfolio 100.00%100.00%6.25%
F. Discount Rate
The discount rate used to measure the total pension liability was 6.25%. Assets were projected using expected benefit
payments and expected asset returns. Expected benefit payments were discounted by year using expected assets return
assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments
after the trust fund is exhausted are discounted at the municipal bond rate of return. The equivalent single rate is the
discount rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members.
G. Pension Liability Sensitivity
The following presents the City of Hopkins proportionate share of the net pension liability of the Association,
calculated using the discount rate of 6.25%, as well as what the Association’s net pension liability would be if it were
calculated using a discount rate that is one percentage point lower (5.25%) or one percentage point higher (7.25%)
than the current rate:
Selected
Net Pension Liability (Asset)1% Decrease Discount Rate 1% Increase
Discount Rate $ (751,467) $ (814,900) $ (874,201)
5.25%6.25%7.25%
H. Plan’s Fiduciary Net Position
The pension plan's fiduciary net position has been determined on the same basis used by the pension plan. The
pension plan is on an accrual-basis of accounting. Revenues are recorded when earned and expenses (including
benefit payments) are recorded when a liability is incurred. Pension plan investments are valued at fair market value
as of year-end.
Detailed information about the Plan's fiduciary net position is available in a separately-issued report. That report may
be obtained by writing to the Hopkins Fire Relief Association, 1010 First St. S., Hopkins, MN 55343, or on-line at
www.hopkinsmn.com
80
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
Information about the changes in the Plan's net pension liability (asset) is as follows:
2017
Total Pension Asset
Service Cost $ 98,992
Interest 154,035
Benefit Payments (127,545)
Net Change in Total Pension Liability 125,482
Total Pension Liability - Beginning 2,429,347
Total Pensions Liability - Ending (a) 2,554,829
Plan Fiduciary Net Position
Employer Contributions 143,749
Net Investment Income 460,846
Benefit Payments (127,545)
Administrative Expenses (12,186)
Net Change in Ficuciary Net Position 464,864
Fiduciary Net Position - Beginning 2,904,865
Fiduciary Net Position - Ending (b) 3,369,729
Associations's Net Pension Liability/(Asset) - Ending (a) - (b) $ (814,900)
I. Aggregate Pension Costs
General
Employees
Plan
Police and
Fire Plan Fire Relief Total
Pension Expense $ 407,138 $ 404,724 $ (19,761) $ 792,101
Net Pension Asset - - 814,900 814,900
Net Pension Liability 4,499,095 3,110,289 - 7,609,384
Deferred Outflows 799,292 4,479,212 102,662 5,381,166
Deferred Inflows 1,172,726 5,996,841 249,370 7,418,937
81
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
12. OTHER POST EMPLOYMENT BENEFIT PLAN
At December 31, 2018, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The City engaged an
actuary to determine the City’s liability for postemployment healthcare benefits other than pensions as of January 1,
2018, for this single employer defined benefit OPEB plan.
A. Plan Description
The City's single employer defined benefit OPEB plan provides OPEB for all permanent full-time employees of the
City. The City's OPEB plan is administered by the City. The City does not administer a trust and therefore does not
issue a separate financial statements. The City is funding this liability on a pay-as-you-go-basis.
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. The City provides
subsidized benefits to active employees, who were hired prior to July 1, 1993 and have been with the City for at least
ten years and are either (1) age 60 year or older or (2) eligible for full PERA retirement benefits. Employees retiring
by June 30, 2007 will receive full single health and life insurance coverage until age 65; employees retiring between
July 1, 2007 and December 31, 2009 will receive $500 per month towards the cost of single health and life insurance
until age 65; and employees retiring after December 31, 2009 will receive $15 per month times yeas of service
(maximum of $500 per month) towards the cost of single health and life insurance unti age 65. Currently 16
employees meet those eligibility requirements. Benefit and eligibility provisions are established through negotiations
and are renegotiated every two years.
Active plan participants entitled to
but not yet receiving benefit
payments 106
Retirees or spouses currently
receiving benefit payments 16
Total Participants 122
B. Total OPEB Liability
The City's total OPEB liability was measured as of January 1, 2018, and was determined by an actuarial valuation as
of that date.
82
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
Actuarial assumptions
The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following actuarial
assumptions, applied to all period included in the measurement unless otherwise specified:
Inflation 2.50%
Salary Increases 3.00%
Invest rate of
return
3.30%
Healthcare cost
trend rates
6.50% as of January 1, 2018
grading to 5.00% over 6 years
Mortality rates were based on RP-2014 White Collar Mortality Tables with MP-2017 Generational Improvement
Scale (with Blue Collar adjustment for Police and FIre Personnel).
The retirement and withdrawal assumptions used to value GASB 75 liabilities are similar to those used to value
pension liabilities for Minnesota public employees. The state pension plans base their assumptions on periodic
experience studies.
Discount Rate
The discount rate used to measure the total OPEB liability was 3.30 percent. Since the plan is not funded by a trust,
the discount rate is equal to the 20-year Municipal Bond Rate.
C. Changes in the Total OPEB Liability
Increase (Decrease)
Total OPEB Liability at 12/31/2017 $ 1,150,800
Changes for the year:
Service Cost 52,550
Interest 36,421
Benefit payments (201,014)
Net Changes (112,043)
Total OPEB Liability at 12/31/2018 $ 1,038,757
Sensitivity of the total OPEB liability to changes in the discount rate
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if
it were calculated using a discount rate that is 1-percentage point lower (2.30 percent) or 1-percentage-point higher
(4.30 percent) than the current discount rate.
1% Decrease Discount Rate 1% Increase
(2.30)% (3.30)% (4.3)%
Total OPEB Liability $ 1,101,600 $ 1,038,757 $ 980,228
83
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if
it were calculated using healthcare cost trend rates thar are 1-percentage-point lower (5.50 percent decreasing to
4.00%) or 1-percentage higher (7.50 percent decreasing to 6.0 percent) than the current healthcare cost trend rates:
1% Decrease
(5.50%
decreasing to
4.00%)
Healthcare Cost
Trend Rates
(6.50%
decreasing to
5.00%)
1% Increase
(7.50%
decreasing to
6.00%)
Total OPEB
Liability
$ 965,273 $ 1,038,757 $ 1,126,110
D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2018, the City recognized OPEB expense of $88,971. At December 31, 2018, the
City reported deferred outflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Contributions made after the measurement date $ 144,260 $ -
The City's contributions subsequent to the measurement date of $144,260, reported as deferred outflows of resources,
will be recognized as a reduction of the total OPEB liability in the city's fiscal year ended December 31, 2019.
13. REHABILITATION LOANS RECEIVABLE
The City makes rehabilitation loans to residential and commercial entities within the City. Residential loans are made
for 20 year periods at 3% interest. A mortgage against the property improved is required and City staff is responsible
to follow-up any delinquent accounts. Loan repayments are made to Matrix Financial Services, a loan service
bureau, which charges a fee of $5.95 per month per loan. Principal and interest are forwarded to the City monthly
with loan collection and loan status reports. Rehabilitation loan activity is a function of the Economic Development
Fund, and the Hennepin County CDBG Funds. Loans become due in full upon sale of property. Rehabilitation loans
receivable amounted to $ 28,829 at December 31, 2018 and are recorded in the Hennepin County CDBG non-major
special revenue funds.
14. CLAIMS AND LITIGATION
The City had the usual and customary types of miscellaneous claims pending at year-end, which are of a minor nature
and usually all covered by insurance carried for that purpose. The City carries a $1,000,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
84
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
15. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City participates in a public entity risk pool to mitigate
its exposure to these risks. Workers compensation and property and liability coverage are provided through a pooled
self-insurance plan with other cities. Settled claims have not exceeded insurance coverage in any of the past three
fiscal years and no significant reductions in coverage from the prior year. The City pays an annual premium based on
prior claims history for its workers compensation coverage. The public entity risk pool is responsible for the
payment of all associated claims. The City has a $20,000 deductible per occurrence with a maximum per year out of
pocket of $40,000, for its property and liability coverage. The public entity risk pool is responsible for all losses in
excess of $20,000 per occurrence and all losses occurring after the $40,000 maximum City out of pocket costs.
16. TAX ABATEMENTS
The City enters into property tax abatement agreements through the use of tax increment financing districts with
local businesses under various Minnesota Statutes. Under these statutes the City annually abates taxes collected
above the districts' base tax capacity which is established during adoption of the tax increment district. These
agreements are established to foster economic development and redevelopment through creating jobs, removing
blight and providing affordable housing. The City uses Minnesota Statutes 469.001 to 469.047 and 469.174 to
469.179 (The Tax Increment Act) to create these districts.
For the year ended December 31, 2017, the City has five agreements established under Minnesota Statute 469.174 to
469.179 (The Tax Increment Act) which resulted in property taxes totaling $2,433,504 being abated. The following
agreement exceeded 10 percent of the total amount abated.
A pay as you go note to convert substandard property into an office complex. The abatement amounted to
$2,092,747.
17. CHANGE IN ACCOUNTING PRINCIPLE
During the fiscal year ended December 31, 2018, the City adopted GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits other than Pension. As a result, the District's net position as of
December 31, 2017 has been restated to reflect the recognition of the City's total OPEB liability
Net Position
Net Position Business-Net Position Net Position
Governmental Type Net Position Net Position Storm Sewer Net Position Nonmajor
Activities Activities Water Utility Sewer Utility Utility Pavilion Proprietary
Net Position, December 31,
2017 as Previously Reported $ 33,044,701 $ 25,434,191 $ 5,638,039 $ 5,214,552 $ 9,228,970 $ 1,760,752 $ 3,591,878
Cumulative Affect of
Application of GASB 75 (760,990) (109,375) (38,680) (27,105) (3,780) (14,159) (25,651)
Net Position, December 31,
2017, as Restated 32,283,711 $ 25,324,816 $ 5,599,359 5,187,447 9,225,190 1,746,593 3,566,227
85
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2018
18. SUBSEQUENT EVENT
At the January 2, 2019 meeting, the City Council approved calling the Taxable General Obligation Housing
Improvement Refunding Bonds, Series 2009B, in advance of their stated maturities. On February 1, 2019 the
remaining outstanding maturities will be called in full at a cost of $890,000 plus $20,495 in interest, and will save
the City a total of $43,330 in future interest expense.
At the March 18, 2019 meeting, the City Council approved issuance and sale of $12,185,000 General Obligation
Bonds, Series 2019A. Proceeds from the 2019A bonds will be used for the City’s 2019 residential road
reconstruction, Blake road reconstruction, capital improvements at City Hall and utility system improvements. Both
issuances were offered for sale on April 2, 2019.
86
REQUIRED SUPPLEMENTARY
INFORMATION
87
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
1. OTHER POSTEMPLOYMENT BENEFITS PLAN
Schedule of Changes in City's Total OPEB Liability and Related Ratios
Measurement Date
January 1, 2018
Total OPEB Liability
Service cost $ 52,550
Interest 36,421
Benefit payments (201,014)
Net change in total OPEB liability (112,043)
Total OPEB liability - beginning 1,150,800
Total OPEB liability - ending $ 1,038,757
Covered employee payroll $ 7,983,539
City's total OPEB liability as a percentage of
the covered employee payroll
13.01%
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 75 for
the year ending December 31, 2018. The schedules within the Required Supplementary Information Section
required a ten year presentation, but does not require retroactive reporting. Information prior to 2018 is not
available.
2. SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
PERA - General Employees Retirement Fund
Measurement
Date
Employer's
Proportionate
(Percentage)
of the
Net Pension
Employer's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
(a)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
of Hopkins
(b)
Employer's
Proportionate
Share of the
Net Pension
Liabiltiy and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City of
Hopkins
(a+b)
Employer's
Covered
Payroll**
(c)
Employer's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
((a+b)/c)
Plan
Fiduciary
Net
Position
as a
Percentage
of the Total
Pension
Coverage
June 30, 2015 0.0831% $ 4,306,673 $ - $ 4,306,673 $ 4,802,000 89.68%78.20%
June 30, 2016 0.0833% 6,763,547 88,334 6,851,881 5,015,680 136.61% 68.90%
June 30, 2017 0.0806% 5,145,451 64,662 5,210,113 5,229,107 99.64% 75.90%
June 30, 2018 0.0811% 4,499,095 147,655 4,646,750 5,969,280 77.84% 79.53%
88
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
PERA - Public Employees Police and Fire Fund
Measurement
Date
Employer's
Proportionate
(Percentage) of the
Net Pension
Employer's
Proportionate
Share (Amount)
of the Net
Pension
Liability (Asset)
(a)
Employer's
Covered
Payroll** (b)
Employer's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll (a/b)
Plan Fiduciary
Net Position
as a Percentage
of the Total
Pension
Coverage
June 30, 2015 0.2690% $ 3,056,469 $ 2,540,691 120.30%86.60%
June 30, 2016 0.2800% 11,236,887 2,744,827 409.38% 63.90%
June 30, 2017 0.2800% 3,780,333 2,831,574 133.51% 85.40%
June 30, 2018 0.2918% 3,110,289 2,879,284 108.02% 84.84%
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for
the year ending December 31, 2015. The schedules within the Required Supplementary Information Section
required a ten year presentation, but does not require retroactive reporting. Information prior to 2015 is not
available.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
3. SCHEDULES OF THE CITY'S CONTRIBUTIONS
PERA - General Employees Retirement Fund
Fiscal
Year
Ending
Statutorily
Required
Contributions
(a)
Contributions
in Relation to
the Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered
Payroll **
(d)
Contributions as a
Percentage of
Covered Payroll
(b/d)
December 31, 2015 $ 360,150 $(360,150)-$ 4,802,000 7.50%
December 31, 2016 376,176 (376,176)- 5,015,680 7.50%
December 31, 2017 392,183 (392,183)- 5,229,107 7.50%
December 31, 2018 447,696 (447,696)- 5,969,280 7.50%
PERA - Public Employees Police and Fire Fund
Fiscal
Year
Ending
Statutorily
Required
Contributions
(a)
Contributions
in Relation to
the Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered
Payroll **
(d)
Contributions as a
Percentage of
Covered Payroll
(b/d)
December 31, 2015 $ 411,592 $(411,592)-$ 2,540,691 16.20%
December 31, 2016 444,662 (444,662)- 2,744,827 16.20%
December 31, 2017 458,715 (458,715)- 2,831,574 16.20%
December 31, 2018 488,856 (488,856)- 3,017,630 16.20%
89
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for
the year ending December 31, 2015. The schedules within the Required Supplementary Information Section
required a ten year presentation, but does not require retroactive reporting. Information prior to 2015 is not
available.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
4. SCHEDULE OF THE CITY'S CONTRIBUTION TO THE HOPKINS FIRE RELIEF FUND
Last Ten Years
Fiscal
Year
Ending
December 31
Actuarially
determined
contribution(a)
Contributions in
Relation to the
Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
2018 $ 40,000 $ (40,000) $ -
2017 143,749 (143,749) -
2016 137,010 (137,010) -
2015 136,009 (136,009) -
2014 126,474 (126,474) -
2013 127,009 (127,009) -
2012 99,335 (99,335) -
2011 97,205 (97,205) -
2010 257,957 (257,957) -
2009 96,698 (96,698) -
90
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
5. SCHEDULE OF CHANGES IN THE NET PENSION ASSET AND
RELATED RATIOS FOR THE HOPKINS FIRE RELIEF FUND
Information about the changes in the Plans's net pension liability (asset) is as follows:
2017 2016 2015 2014
Total Pension Asset
Service Cost $ 98,992 $ 81,771 $ 85,760 $ 77,831
Interest 154,035 171,936 157,795 139,957
Differences Between Expected and Actual
Experience
- (262,107) - -
Changes of Assumptions - 83,549 - -
Plan Changes - 212,877 - -
Benefit Payments (127,545) (138,785) (134,745) (13,923)
Net Change in Total Pension Liability 125,482 149,241 108,810 203,865
Total Pension Liability - Beginning 2,429,347 2,280,106 2,171,296 1,967,431
Total Pension Liability - Ending (a) 2,554,829 2,429,347 2,280,106 2,171,296
Plan Fiduciary Net Position
Employer Contributions 143,749 137,010 136,009 126,474
Net Investment Income 460,846 186,692 (117,135) 77,066
Benefit Payments (127,545) (138,785) (134,745) (13,923)
Administrative Expenses (12,186) (11,761) (11,783) (12,295)
Net Change in Fiduciary Net Position 464,864 173,156 (127,654) 177,322
Fiduciary Net Position - Beginning 2,904,865 2,731,709 2,859,363 2,682,041
Fiduciary Net Position Ending (b) 3,369,729 2,904,865 2,731,709 2,859,363
Association's Net Pension Liability/(Asset) -
Ending (a) - (b)
$
(814,900)
$
(475,518)
$
(451,603)
$
(688,067)
Fiduciary Net Position as percentage of the Total
Pension Liability 131.90% 119.57% 119.81% 131.69%
Covered-Employee Payroll N/A N/A N/A N/A
Net Pension Liability/(Asset) as a Percentage of
Covered-Employee Payroll N/A N/A N/A N/A
Note: Information prior to 2014 is unavilable.
91
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
Notes to Supplementary Information
PERA - General Employees Retirement Fund
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017
The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.5
percent per year thereafter to 1.25 percent per year.
2017 Changes
Changes in Plan Provisions:
The State's special funding contribution increased from $6 million to $16 million.
Changes in Actuarial Assumptions
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active
members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now
0.0 percent for activie member liability, 15.00 percent for vested deferred member liability and 3.00
percent for non-vested deferred member liability.
The assumped post-retirement benefit increase rate was changed from 1.00 percent per year
for all years to 1.00 percent per year through 2044 and 2.50 percent per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
The assumped post-retirement benefit increase rate was changed from 1.00 percent per year
through 2035 and 2.5 percent per year thereafter to 1.00 percent per year for all years.
The assumped investment return was changed from 7.90 percent to 7.50 percent. The single
discount rate was changed from 7.90 percent to 7.50 percent.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25
percent for payroll growth and 2.50 percent for inflation.
2015 Changes
Changs in Plan Provisions
On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the
General Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions
were revised; the State's contribution of $6 million, which meets the special funding situation
definition, is due September 2015
Changes in Actuarial Assumptions
The assumped post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2035 and 2.50
percent per year thereafter.
92
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
PERA - Public Employees Police and Fire Fund
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017
2017 Changes
Changes in Actuarial Assumptions:
Assumed salary increased were changed as recommeded in the June 30, 2016 experience
study. The nef effect is proposed rates that average 0.34 percent lower than the previous rates.
Assumed rates of retirement were changed, resultin in fewer retirements.
The combined Service Annuity (CSA) load was 30 percent for vested and non-vested
deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for
non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generation table to the RP-2014 fully generation tables (with a base year of 2006), with male rates
adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale
MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0 for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected termination overall.
Assumed percentage of married female was decreased from 65 percent to 60 percent.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years older) to
the assumption that males are two year older than females.
The assumed percentage of female member electing Joint and Survivor annuities was
increased.
The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years
to 1.00 percent per year through 2064 and 2.50 percent thereafter.
The Single Discoun Rate was changed from 5.60 percent per annum to 7.50 percent per
annum.
2016 Changes
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2037 and 2.50 percent thereafter to 1.00 percent per year for all future years.
The assumed investment return was changed from 7.90 percent to 7.50 percent. The single
discount rate changed from 7.90 percent to 5.60 percent.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25
percent to 3.25 percent for payroll growth and 2.50 percent for inflation.
2015 Changes
Changes in Plan Provisions
The post-retirement benefit increse to be paid after attainment of the 90 percent funding
threshold was changed, from inflation up to 2.50 percent, to a fixed rate of 2.50 percent.
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2037 and 2.50
percent per year thereafter.
93
94
CITY OF HOPKINS, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS STATEMENTS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. Expenditures are restricted by law or administrative regulation for
specified purposes.
State Chemical Assessment Fund – This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Hennepin County CDBG - This fund accounts for receipt for Community Development Block
Grant funds and the issuance of loans and grants for housing rehabilitation.
Parking Fund - This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
Communications Fund - This fund records the City's share of a five-city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission.
Hopkins Race & Equity Initiative - This fund was established to account for the activity of a
colloborative effort of the City and two outside organizations centered on race equity.
Depot Coffee House Fund – This fund accounts for the operations of the coffee house
business and the teen center operations that are supported through grant funds.
Tax Increment Funds - These funds were established to record the use of tax increment
receipts and bond proceeds as applied in various Tax Increment Districts.
5th Avenue Flats Fund - This fund was established to account for the project costs of the 5th
Avenue Flats project. Originally shown as a tax increment fund the project changed scope and
is no longer in a tax increment district.
95
DEBT SERVICE FUNDS
Debt Service Funds are established to finance and account for the payment of interest
and principal on all general obligation debt other than debt issued for and serviced by a
governmental enterprise. Provisions are made in the City's general property tax levy for
money sufficient to meet the general obligation debt.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature. (Special revenue and enterprise fund
resources are not included in this category.) These funds evolve from the needs for
special accounting for bond proceeds, grants and contributions for the acquisition of
capital assets.
Park Improvements Fund - This fund was established to record construction and
improvement costs for park facilities.
Capital Improvement Fund - This fund accounts for funds set aside for the
construction and improvement of City facility and infrastructure.
Municipal State Aid Fund - This fund is used to account for the City's allocation of the
state collected highway user tax. This allocation is based on population and need for
construction of designated state aid streets in the City.
96
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications
Hopkins Race &
Equity Initiative
Assets
Cash and cash equivalents $- $- $ 226,227 $ 482,293 $ 1,852
Accounts receivable ---63,366 -
Rehabilitation loans receivable -28,829 ---
Interest receivable --237 82 -
Prepaid items --3,588 88 -
Total Assets $-$28,829 $230,052 $545,829 $1,852
Liabilities and Fund Balances
Liabilities:
Accounts payable $- $- $ 6,033 $87 $3
Salaries payable 3,111 -1,920 2,374 -
Due to other funds 17,019 5,000 ---
Due to other governments --48 --
Unearned revenue --85,673 --
Total Liabilities 20,130 5,000 93,674 2,461 3
Fund balances:
Restricted -23,829 -154,005 1,849
Committed --136,378 389,363 -
Unassigned (20,130)----
Total Fund Balances (20,130)23,829 136,378 543,368 1,849
Total Liabilities and Fund Balances $-$28,829 $230,052 $545,829 $1,852
97
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Special Revenue Funds
Depot
Coffee
House
Tax
Increment
District
Entertainment
District
Tax
Increment
District
Sonoma
Tax
Increment
District
Oaks of
Mainstreet 5th Ave Flats
Assets
Cash and cash equivalents $- $ 246,040 $ 47,910 $ 555,960 $-
Accounts receivable 2,217 ----
Rehabilitation loans receivable -----
Interest receivable -33 -479 -
Prepaid items 979 ----
Total Assets $3,196 $246,073 $47,910 $556,439 $-
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 6,926 $200 $206 $880 $-
Salaries payable 4,343 ----
Due to other funds 55,602 172,288 72,396 -393,831
Due to other governments 863 ----
Unearned revenue -----
Total Liabilities 67,734 172,488 72,602 880 393,831
Fund balances:
Restricted -73,585 -555,559 -
Committed -----
Unassigned (64,538)-(24,692)-(393,831)
Total Fund Balances (64,538)73,585 (24,692)555,559 (393,831)
Total Liabilities and Fund Balances $3,196 $246,073 $47,910 $556,439 $-
98
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Special Revenue Funds
Tax Increment
District Moline
Tax
Increment
District
Markeplace
& Main Total
Assets
Cash and cash equivalents $ 51,008 $ 92,203 $ 1,703,493
Accounts receivable --65,583
Rehabilitation loans receivable --28,829
Interest receivable --831
Prepaid items --4,655
Total Assets $51,008 $92,203 $1,803,391
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 46,635 $ 86,036 $ 147,006
Salaries payable --11,748
Due to other funds -210,000 926,136
Due to other governments --911
Unearned revenue --85,673
Total Liabilities 46,635 296,036 1,171,474
Fund balances:
Restricted 4,373 -813,200
Committed --525,741
Unassigned -(203,833) (707,024)
Total Fund Balances 4,373 (203,833)631,917
Total Liabilities and Fund Balances $51,008 $92,203 $1,803,391
99
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Debt Service Funds
Taxable Tax
Increment
Bonds of 1997
Refunding
Bonds of 2005B
Housing
Improvement
Bonds of 1999A
Refunding
Bonds of 2009B
Housing
Improvement
Bonds of 1999B
Refunding
Bonds of 2009B
Improvement
Revolving
Bonds of
2010A
Assets
Cash and cash equivalents $ 12,526 $ 447,865 $ 848,862 $ 155,206
Taxes receivable ---1,454
Special assessments receivable 8,506 152,133 269,380 273,400
Interest receivable 128 99 197 201
Total Assets $21,160 $600,097 $1,118,439 $430,261
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $96 $96 $-
Due to other funds ----
Total Liabilities -96 96 -
Deferred inflows of resources:
Taxes and special assessments 8,506 148,986 266,801 267,246
Total Deferred Inflows of Resources 8,506 148,986 266,801 267,246
Fund balances:
Restricted 12,654 451,015 851,542 163,015
Unassigned ----
Total Fund Balances 12,654 451,015 851,542 163,015
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $21,160 $600,097 $1,118,439 $430,261
100
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Debt Service Funds
Tax
Increment
Bonds of 2002
Refunding
Bonds of
2010B
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Assets
Cash and cash equivalents $ 272,422 $ 265,590 $ 57,202 $ 457,828 $ 350,967
Taxes receivable -3,991 1,698 2,123 1,345
Special assessments receivable ---406,748 260,229
Interest receivable 91 48 30 259 159
Total Assets $272,513 $269,629 $58,930 $866,958 $612,700
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $- $- $- $-
Due to other funds -----
Total Liabilities -----
Deferred inflows of resources:
Taxes and special assessments -2,523 1,088 407,773 260,495
Total Deferred Inflows of Resources -2,523 1,088 407,773 260,495
Fund balances:
Restricted 272,513 267,106 57,842 459,185 352,205
Unassigned -----
Total Fund Balances 272,513 267,106 57,842 459,185 352,205
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $272,513 $269,629 $58,930 $866,958 $612,700
101
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Debt Service Funds
Improvement
Bonds of 2014A
Refunding
Bonds of 2014B
SROP Bonds of
2015A
Tax Abatement
Bonds of 2015B
Tax Increment
Revenue Bonds
of 2015C
Assets
Cash and cash equivalents $ 191,341 $ 455,630 $ 320,887 $ 126,410 $ 485,464
Taxes receivable 1,612 12,763 4,195 1,950 -
Special assessments receivable 67,706 -51,250 --
Interest receivable 81 628 142 89 215
Total Assets $260,740 $469,021 $376,474 $128,449 $485,679
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $- $- $- $-
Due to other funds -----
Total Liabilities -----
Deferred inflows of resources:
Taxes and special assessments 68,720 8,166 53,813 1,192 -
Total Deferred Inflows of Resources 68,720 8,166 53,813 1,192 -
Fund balances:
Restricted 192,020 460,855 322,661 127,257 485,679
Unassigned -----
Total Fund Balances 192,020 460,855 322,661 127,257 485,679
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $260,740 $469,021 $376,474 $128,449 $485,679
102
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Debt Service Funds
Tax Increment
Revenue Bonds
of 2015D
Improvement
Bonds of 2016A
Tax Abatement
Bonds of 2016B
G O Bonds of
2016C
Tax Increment
Revenue Bonds
of 2016D
Assets
Cash and cash equivalents $ 146,401 $ 601,939 $ 121,578 $ 73,796 $-
Taxes receivable -1,404 543 3,708 -
Special assessments receivable -606,054 ---
Interest receivable 69 ---6,160
Total Assets $146,470 $1,209,397 $122,121 $77,504 $6,160
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $619 $119 $81 $-
Due to other funds ----7,604
Total Liabilities -619 119 81 7,604
Deferred inflows of resources:
Taxes and special assessments -606,888 323 2,246 -
Total Deferred Inflows of Resources -606,888 323 2,246 -
Fund balances:
Restricted 146,470 601,890 121,679 75,177 -
Unassigned ----(1,444)
Total Fund Balances 146,470 601,890 121,679 75,177 (1,444)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $146,470 $1,209,397 $122,121 $77,504 $6,160
103
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Debt Service Funds
SROP Bonds of
2017A
G O Bonds of
2018A
G O Bonds of
2017B Total
Assets
Cash and cash equivalents $ 794,640 $ 144,886 $ 175,308 $ 6,506,748
Taxes receivable 12,924 -2,396 52,106
Special assessments receivable 677,193 -- 2,772,599
Interest receivable -1,433 -10,029
Total Assets $1,484,757 $146,319 $177,704 $9,341,482
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 2,266 $ 4,911 $- $ 8,188
Due to other funds ---7,604
Total Liabilities 2,266 4,911 -15,792
Deferred inflows of resources:
Taxes and special assessments 683,287 -1,390 2,789,443
Total Deferred Inflows of Resources 683,287 -1,390 2,789,443
Fund balances:
Restricted 799,204 141,408 176,314 6,537,691
Unassigned ---(1,444)
Total Fund Balances 799,204 141,408 176,314 6,536,247
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,484,757 $146,319 $177,704 $9,341,482
104
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Capital Project Funds
Park
Improvements
Capital
Improvement
Municipal State
Aid
Construction
Fund Total
Assets
Cash and cash equivalents $ 90,067 $- $ 98,767 $ 188,834
Taxes receivable -1,396 -1,396
Accounts receivable 76,643 --76,643
Interest receivable 1,391 --1,391
Total Assets $168,101 $1,396 $98,767 $268,264
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 90,017 $ 21,738 $278 $ 112,033
Total Liabilities 90,017 21,738 278 112,033
Deferred inflows of resources:
Due to other funds -383,710 -383,710
Taxes and special assessments -822 -822
Total Deferred Inflows of Resources -384,532 -384,532
Fund balances:
Restricted 78,084 -98,489 176,573
Unassigned - (404,874)- (404,874)
Total Fund Balances 78,084 (404,874)98,489 (228,301)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $168,101 $1,396 $98,767 $268,264
105
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Special Revenue Debt Service Capital Projects
Total
Non-major
Governmental
Funds
Assets
Cash and cash equivalents $ 1,703,493 $ 6,506,748 $ 188,834 $ 8,399,075
Taxes receivable -52,106 1,396 53,502
Special assessments receivable - 2,772,599 - 2,772,599
Accounts receivable 65,583 -76,643 142,226
Rehabilitation loans receivable 28,829 --28,829
Interest receivable 831 10,029 1,391 12,251
Prepaid items 4,655 --4,655
Total Assets $1,803,391 $9,341,482 $268,264 $11,413,137
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 147,006 $ 8,188 $ 112,033 $ 267,227
Salaries payable 11,748 --11,748
Due to other funds 926,136 7,604 383,710 1,317,450
Due to other governments 911 --911
Unearned revenue 85,673 --85,673
Total Liabilities 1,171,474 15,792 495,743 1,683,009
Deferred inflows of resources:
Taxes and special assessments - 2,789,443 822 2,790,265
Total Deferred Inflows of Resources -2,789,443 822 2,790,265
Fund balances:
Restricted 813,200 6,537,691 176,573 7,527,464
Committed 525,741 -- 525,741
Unassigned (707,024)(1,444) (404,874) (1,113,342)
Total Fund Balances 631,917 6,536,247 (228,301)6,939,863
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,803,391 $9,341,482 $268,264 $11,413,137
106
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications
Hopkins Race &
Equity Initiative
Revenues
Franchise Fees $- $- $- $ 225,123 $-
Tax increments -----
Intergovernmental 64,514 ----
Charges for services --116,825 --
Fines --18,912 --
Investment earnings --517 1,882 13
Other miscellaneous revenues ---31,344 6,000
Total Revenues 64,514 -136,254 258,349 6,013
Expenditures
Current:
General government ---189,999 -
Public safety 61,646 -76,928 --
Highways and streets --60,167 --
Urban redevelopment and housing -8,393 ---
Culture and recreation ----7,255
Debt service:
Interest and fiscal fees -----
Total Expenditures 61,646 8,393 137,095 189,999 7,255
Excess (deficiency) of revenues
over expenditures 2,868 (8,393)(841)68,350 (1,242)
Other Financing Sources (Uses)
Transfer in -----
Transfer out ---(86,920)-
Total Other Financing Sources (Uses)---(86,920)-
Net change in fund balances 2,868 (8,393)(841)(18,570)(1,242)
Fund balance (deficit) - January 1 (22,998)32,222 137,219 561,938 3,091
Fund balance (deficit) - December 31 $(20,130)$23,829 $136,378 $543,368 $1,849
107
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Special Revenue Funds
Depot
Coffee
House
Tax
Increment
District
Entertainment
District
Tax
Increment
District
Sonoma
Tax Increment
District Oaks of
Mainstreet 5th Ave Flats
Revenues
Franchise Fees $- $- $- $- $-
Tax increments -39,507 17,905 --
Intergovernmental 15,000 ----
Charges for services 72,569 ----
Fines -----
Investment earnings -765 20 1,986 -
Other miscellaneous revenues 232,689 -4,760 --
Total Revenues 320,258 40,272 22,685 1,986 -
Expenditures
Current:
General government -----
Public safety -----
Highways and streets -----
Urban redevelopment and housing -4,173 3,615 8,959 2,000
Culture and recreation 368,508 ----
Debt service:
Interest and fiscal fees -9,487 ---
Total Expenditures 368,508 13,660 3,615 8,959 2,000
Excess (deficiency) of revenues
over expenditures (48,250)26,612 19,070 (6,973)(2,000)
Other Financing Sources (Uses)
Transfer in 15,000 -24,108 --
Transfer out -----
Total Other Financing Sources (Uses)15,000 -24,108 --
Net change in fund balances (33,250)26,612 43,178 (6,973)(2,000)
Fund balance (deficit) - January 1 (31,288)46,973 (67,870)562,532 (391,831)
Fund balance (deficit) - December 31 $(64,538)$73,585 $(24,692)$555,559 $(393,831)
108
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Special Revenue Funds
Tax Increment
District Moline
Tax Increment
District
Marketplace &
Main Total
Revenues
Franchise Fees $- $- $ 225,123
Tax increments 98,179 185,166 340,757
Intergovernmental --79,514
Charges for services --189,394
Fines --18,912
Investment earnings -197 5,380
Other miscellaneous revenues --274,793
Total Revenues 98,179 185,363 1,133,873
Expenditures
Current:
General government --189,999
Public safety --138,574
Highways and streets --60,167
Urban redevelopment and housing 93,806 179,974 300,920
Culture and recreation --375,763
Debt service:
Interest and fiscal fees --9,487
Total Expenditures 93,806 179,974 1,074,910
Excess (deficiency) of revenues
over expenditures 4,373 5,389 58,963
Other Financing Sources (Uses)
Transfer in --39,108
Transfer out --(86,920)
Total Other Financing Sources (Uses)--(47,812)
Net change in fund balances 4,373 5,389 11,151
Fund balance (deficit) - January 1 -(209,222)620,766
Fund balance (deficit) - December 31 $4,373 $(203,833)$631,917
109
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Debt Service Funds
Taxable Tax
Increment
Bonds of 1997
Refunding
Bonds of 2005B
Housing
Improvement
Bonds of 1999A
Refunding
Bonds of 2009B
Housing
Improvement
Bonds of 1999B
Refunding
Bonds of 2009B
Improvement
Revolving
Bonds of
2010A
Tax
Increment
Bonds of 2002
Refunding
Bonds of
2010B
Revenues
Property taxes $- $- $- $ 78,155 $-
Special assessments 5,762 139,030 262,978 66,427 -
Investment earnings 304 1,071 1,989 -267
Total Revenues 6,066 140,101 264,967 144,582 267
Expenditures
Current:
General government 85,000 554 554 458 458
Debt Service:
Principal retirement -95,000 175,000 180,000 150,000
Interest and fiscal fees -19,856 27,321 45,457 21,061
Total Expenditures 85,000 115,410 202,875 225,915 171,519
Excess (deficiency) of revenues
over expenditures (78,934)24,691 62,092 (81,333)(171,252)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ---69,825 188,000
Transfer out -----
Total Other Financing Sources (Uses)---69,825 188,000
Net change in fund balances (78,934)24,691 62,092 (11,508)16,748
Fund balance (deficit) - January 1 91,588 426,324 789,450 174,523 255,765
Fund balance (deficit) - December 31 $12,654 $451,015 $851,542 $163,015 $272,513
110
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Debt Service Funds
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Improvement
Bonds of 2014A
Revenues
Property taxes $ 214,920 $ 87,949 $ 117,249 $ 78,100 $ 87,913
Special assessments -- 107,076 67,431 9,706
Investment earnings 156 -794 673 172
Total Revenues 215,076 87,949 225,119 146,204 97,791
Expenditures
Current:
General government 458 458 458 458 458
Debt Service:
Principal retirement 175,000 80,000 205,000 120,000 115,000
Interest and fiscal fees 14,670 10,318 31,363 24,052 46,369
Total Expenditures 190,128 90,776 236,821 144,510 161,827
Excess (deficiency) of revenues
over expenditures 24,948 (2,827)(11,702)1,694 (64,036)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ----49,934
Transfer out -----
Total Other Financing Sources (Uses)----49,934
Net change in fund balances 24,948 (2,827)(11,702)1,694 (14,102)
Fund balance (deficit) - January 1 242,158 60,669 470,887 350,511 206,122
Fund balance (deficit) - December 31 $267,106 $57,842 $459,185 $352,205 $192,020
111
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Debt Service Funds
Refunding
Bonds of 2014B
SROP Bonds of
2015A
Tax Abatement
Bonds of 2015B
Tax Increment
Revenue Bonds
of 2015C
Tax Increment
Revenue Bonds
of 2015D
Revenues
Property taxes $ 654,913 $ 244,115 $ 112,317 $- $-
Special assessments 1,405 9,199 ---
Investment earnings 127 94 -639 -
Total Revenues 656,445 253,408 112,317 639 -
Expenditures
Current:
General government 458 458 458 458 458
Debt Service:
Principal retirement 915,000 240,000 120,000 240,000 350,000
Interest and fiscal fees 83,225 86,850 72,180 90,375 154,664
Total Expenditures 998,683 327,308 192,638 330,833 505,122
Excess (deficiency) of revenues
over expenditures (342,238)(73,900)(80,321)(330,194)(505,122)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in 145,000 68,412 63,750 330,000 504,000
Transfer out -----
Total Other Financing Sources (Uses)145,000 68,412 63,750 330,000 504,000
Net change in fund balances (197,238)(5,488)(16,571)(194)(1,122)
Fund balance (deficit) - January 1 658,093 328,149 143,828 485,873 147,592
Fund balance (deficit) - December 31 $460,855 $322,661 $127,257 $485,679 $146,470
112
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Debt Service Funds
Improvement
Bonds of 2016A
Tax Abatement
Bonds of 2016B
G O Bonds of
2016C
Tax Increment
Revenue Bonds
of 2016D
SROP Bonds of
2017A
Revenues
Property taxes $ 87,829 $ 34,047 $ 236,408 $- $ 877,447
Special assessments 93,267 --- 161,591
Investment earnings 795 ----
Total Revenues 181,891 34,047 236,408 -1,039,038
Expenditures
Current:
General government 458 458 458 457 7,644
Debt Service:
Principal retirement 250,000 95,000 185,000 200,000 -
Interest and fiscal fees 87,950 32,666 31,998 89,625 466,546
Total Expenditures 338,408 128,124 217,456 290,082 474,190
Excess (deficiency) of revenues
over expenditures (156,517)(94,077)18,952 (290,082)564,848
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in 154,665 100,000 73,050 290,000 -
Transfer out -----
Total Other Financing Sources (Uses)154,665 100,000 73,050 290,000 -
Net change in fund balances (1,852)5,923 92,002 (82)564,848
Fund balance (deficit) - January 1 603,742 115,756 (16,825)(1,362) 234,356
Fund balance (deficit) - December 31 $601,890 $121,679 $75,177 $(1,444)$799,204
113
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Debt Service Funds
G O Bonds of
2018A
G O Bonds of
2017B Total
Revenues
Property taxes $- $ 162,667 $ 3,074,029
Special assessments -- 923,872
Investment earnings 1,464 100 8,645
Total Revenues 1,464 162,767 4,006,546
Expenditures
Current:
General government 139,042 1,371 241,492
Debt Service:
Principal retirement -- 3,890,000
Interest and fiscal fees -50,899 1,487,445
Total Expenditures 139,042 52,270 5,618,937
Excess (deficiency) of revenues
over expenditures (137,578)110,497 (1,612,391)
Other Financing Sources (Uses)
Improvement bonds issued 6,715,000 - 6,715,000
Premium on improvement bonds 168,423 - 168,423
Transfer in -32,000 2,068,636
Transfer out (6,604,437)- (6,604,437)
Total Other Financing Sources (Uses)278,986 32,000 2,347,622
Net change in fund balances 141,408 142,497 735,231
Fund balance (deficit) - January 1 -33,817 5,801,016
Fund balance (deficit) - December 31 $141,408 $176,314 $6,536,247
114
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Capital Projects Funds
Park
Improvements
Capital
Improvement
Municipal State
Aid
Construction
Fund Total
Revenues
Property taxes $- $ 73,528 $- $ 73,528
Franchise Fees 305,022 --305,022
Intergovernmental --712,814 712,814
Investment earnings -44 -44
Other miscellaneous revenues 27,000 3,240 -30,240
Total Revenues 332,022 76,812 712,814 1,121,648
Expenditures
Current:
General government -304 -304
Highways and streets 394,033 16,731 (36,266) 374,498
Capital outlay 358,260 319,004 -677,264
Total Expenditures 752,293 336,039 (36,266)1,052,066
Excess (deficiency) of revenues
over expenditures (420,271)(259,227)749,080 69,582
Other Financing Sources (Uses)
Transfer in 120,000 --120,000
Transfer out (710,000)-- (710,000)
Total Other Financing Sources (Uses)(590,000)--(590,000)
Net change in fund balances (1,010,271)(259,227)749,080 (520,418)
Fund balance (deficit) - January 1 1,088,355 (145,647) (650,591) 292,117
Fund balance (deficit) - December 31 $78,084 $(404,874)$98,489 $(228,301)
115
City of Hopkins
Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2018
Special Revenue Debt Service Capital Projects
Total Nonmajor
Governmental
Funds
Revenues
Property taxes $- $ 3,074,029 $ 73,528 $ 3,147,557
Franchise Fees 225,123 -305,022 530,145
Tax increments 340,757 --340,757
Special assessments -923,872 -923,872
Intergovernmental 79,514 -712,814 792,328
Charges for services 189,394 --189,394
Fines 18,912 --18,912
Investment earnings 5,380 8,645 44 14,069
Other miscellaneous revenues 274,793 -30,240 305,033
Total Revenues 1,133,873 4,006,546 1,121,648 6,262,067
Expenditures
Current:
General government 189,999 241,492 304 431,795
Public safety 138,574 --138,574
Highways and streets 60,167 -374,498 434,665
Urban redevelopment and housing 300,920 --300,920
Culture and recreation 375,763 --375,763
Debt service:
Principal retirement - 3,890,000 - 3,890,000
Interest and fiscal fees 9,487 1,487,445 - 1,496,932
Capital outlay --677,264 677,264
Total Expenditures 1,074,910 5,618,937 1,052,066 7,745,913
Excess (deficiency) of revenues
over expenditures 58,963 (1,612,391)69,582 (1,483,846)
Other Financing Sources (Uses)
Improvement bonds issued - 6,715,000 - 6,715,000
Premium on improvement bonds -168,423 -168,423
Transfer in 39,108 2,068,636 120,000 2,227,744
Transfer out (86,920) (6,604,437)(710,000) (7,401,357)
Total Other Financing Sources (Uses)(47,812)2,347,622 (590,000)1,709,810
Net change in fund balances 11,151 735,231 (520,418)225,964
Fund balance (deficit) - January 31 620,766 5,801,016 292,117 6,713,899
Fund balance (deficit) - December 31 $631,917 $6,536,247 $(228,301)$6,939,863
116
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
State Chemical Assessment
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 60,000 $ 60,000 $ 64,514 $ 4,514
Total Revenues 60,000 60,000 64,514 4,514
Expenditures
Current:
Public safety 60,000 60,000 61,646 (1,646)
Total Expenditures 60,000 60,000 61,646 (1,646)
Net change in fund balance $-$-2,868 $2,868
Fund balance (deficit) - January 1 (22,998)
Fund balance (deficit) - December 31 $ (20,130)
117
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Parking
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Charges for services $ 126,000 $ 126,000 $ 116,825 $ (9,175)
Fines 22,000 22,000 18,912 (3,088)
Investment earnings 2,500 2,500 517 (1,983)
Total Revenues 150,500 150,500 136,254 (14,246)
Expenditures
Current:
Public safety 79,515 79,515 76,928 2,587
Highways and streets 34,014 34,014 60,167 (26,153)
Total Expenditures 113,529 113,529 137,095 (23,566)
Net change in fund balance $36,971 $36,971 (841)$(37,812)
Fund balance (deficit) - January 1 137,219
Fund balance (deficit) - December 31 $ 136,378
118
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Communications
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Franchise Fees $ 233,000 $ 233,000 $ 225,123 $ (7,877)
Investment earnings 3,200 3,200 1,882 (1,318)
Other miscellaneous revenues 33,000 33,000 31,344 (1,656)
Total Revenues 269,200 269,200 258,349 (10,851)
Expenditures
Current:
General government 172,147 172,147 189,999 (17,852)
Capital Outlay 26,500 26,500 -26,500
Total Expenditures 198,647 198,647 189,999 8,648
Excess (deficiency) of revenues over expenditures 70,553 70,553 68,350 (2,203)
Other Financing Sources (Uses)
Transfer out (86,920)(86,920)(86,920)-
Total Other Financing Sources (Uses)(86,920)(86,920)(86,920)-
Net change in fund balance $(16,367)$(16,367)(18,570)$(2,203)
Fund balance (deficit) - January 1 561,938
Fund balance (deficit) - December 31 $ 543,368
119
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Hopkins Race & Equity Initiative
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $13 $13
Other miscellaneous revenues --6,000 6,000
Total Revenues --6,013 6,013
Expenditures
Culture and recreation --7,255 (7,255)
Total Expenditures --7,255 (7,255)
Net change in fund balance $-$-(1,242)$(1,242)
Fund balance (deficit) - January 1 3,091
Fund balance (deficit) - December 31 $ 1,849
120
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Depot Coffee House
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 15,000 $ 15,000 $ 15,000 $-
Charges for services 69,500 69,500 72,569 3,069
Other miscellaneous revenues 252,500 252,500 232,689 (19,811)
Total Revenues 337,000 337,000 320,258 (16,742)
Expenditures
Current:
Culture and recreation 367,753 367,753 368,508 (755)
Total Expenditures 367,753 367,753 368,508 (755)
Excess (deficiency) of revenues over expenditures (30,753)(30,753)(48,250)(17,497)
Other Financing Sources (Uses)
Transfer in 15,000 15,000 15,000 -
Total Other Financing Sources (Uses)15,000 15,000 15,000 -
Net change in fund balance $(15,753)$(15,753)(33,250)$(17,497)
Fund balance (deficit) - January 1 (31,288)
Fund balance (deficit) - December 31 $ (64,538)
121
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Entertainment District
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 29,500 $ 29,500 $ 39,507 $ 10,007
Investment earnings 500 500 765 265
Total Revenues 30,000 30,000 40,272 10,272
Expenditures
Current:
Urban redevelopment and housing 3,000 3,000 4,173 (1,173)
Debt Service:
Interest and fiscal fees 10,242 10,242 9,487 755
Total Expenditures 13,242 13,242 13,660 (418)
Net change in fund balance $16,758 $16,758 26,612 $9,854
Fund balance (deficit) - January 1 46,973
Fund balance (deficit) - December 31 $ 73,585
122
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Sonoma
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 14,000 $ 14,000 $ 17,905 $ 3,905
Investment earnings --20 20
Other miscellaneous revenues 7,000 7,000 4,760 (2,240)
Total Revenues 21,000 21,000 22,685 1,685
Expenditures
Urban redevelopment and housing 2,850 2,850 3,615 (765)
Debt service:
Interest and fiscal fees 4,126 4,126 -4,126
Total Expenditures 6,976 6,976 3,615 3,361
Excess (deficiency) of revenues over expenditures 14,024 14,024 19,070 5,046
Other Financing Sources (Uses)
Transfer in --24,108 24,108
Total Other Financing Sources (Uses)--24,108 24,108
Net change in fund balance $14,024 $14,024 43,178 $29,154
Fund balance (deficit) - January 1 (67,870)
Fund balance (deficit) - December 31 $ (24,692)
123
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Oaks of Mainstreet
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $ 1,986 $ 1,986
Total Revenues --1,986 1,986
Expenditures
Current:
Urban redevelopment and housing --8,959 (8,959)
Total Expenditures --8,959 (8,959)
Net change in fund balance $-$-(6,973)$(6,973)
Fund balance (deficit) - January 1 562,532
Fund balance (deficit) - December 31 $ 555,559
124
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
5th Ave Flats
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Expenditures
Urban redevelopment and housing $ 2,000 $ 2,000 $ 2,000 $-
Debt service:
Total Expenditures 2,000 2,000 2,000 -
Net change in fund balance $(2,000)$(2,000)(2,000)$-
Fund balance (deficit) - January 1 (391,831)
Fund balance (deficit) - December 31 $ (393,831)
125
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Moline
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 97,500 $ 97,500 $ 98,179 $679
Investment earnings 500 500 -(500)
Total Revenues 98,000 98,000 98,179 179
Expenditures
Urban redevelopment and housing 11,000 11,000 93,806 (82,806)
Total Expenditures 11,000 11,000 93,806 (82,806)
Net change in fund balance $87,000 $87,000 4,373 $(82,627)
Fund balance (deficit) - January 1 -
Fund balance (deficit) - December 31 $ 4,373
126
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Marketplace & Main
For the Year Ended December 31, 2018
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 125,000 $ 125,000 $ 185,166 $ 60,166
Investment earnings --197 197
Total Revenues 125,000 125,000 185,363 60,363
Expenditures
Current:
Urban redevelopment and housing 115,000 115,000 179,974 (64,974)
Debt service:
Total Expenditures 115,000 115,000 179,974 (64,974)
Net change in fund balance $10,000 $10,000 5,389 $(4,611)
Fund balance (deficit) - January 1 (209,222)
Fund balance (deficit) - December 31 $ (203,833)
127
128
CITY OF HOPKINS, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units, which render services to the general public on a user
charge basis. Records are maintained on the accrual basis of accounting.
The Authority for these types of funds is derived from Section 11.01 of the City Charter,
which allows for utility or other public service enterprise funds.
The City has six Enterprise Funds, three of which are considered to be nonmajor, they
are:
Refuse Utility Fund – This fund accounts for the operations of the city owned refuse
service.
Housing Authority Fund – This fund accounts for the operations of the city owned
federally subsidized apartment building.
129
City of Hopkins
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2018
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility
Housing
Authority Total
Assets
Current assets:
Cash and investments $ 1,330,984 $ 577,075 $ 1,908,059
Accounts receivable 48,181 80,311 128,492
Due from other governments -55,226 55,226
Prepaid expenses -14,056 14,056
Total current assets 1,379,165 726,668 2,105,833
Noncurrent assets:
Capital assets, nondepreciable:
Land - 208,252 208,252
Capital assets, depreciable:
Building and structures 302,727 5,258,304 5,561,031
Machinery and equipment 838,330 52,719 891,049
Less accumulated depreciation (562,261) (3,964,663) (4,526,924)
Total noncurrent assets 578,796 1,554,612 2,133,408
Total Assets 1,957,961 2,281,280 4,239,241
Deferred outflows of resources:
Pensions and OPEB 40,557 1,420 41,977
Total Deferred Outflows of Resources 40,557 1,420 41,977
Liabilities
Current liablilities:
Accounts payable 34,495 80,322 114,817
Salaries payable 7,185 60,504 67,689
Due to other governments 11,827 -11,827
Compensated absences 20,142 11,360 31,502
Total current liabilities 73,649 152,186 225,835
Noncurrent liabilities:
Total OPEB liability due within one year 2,832 1,420 4,252
Total OPEB liability due in more than one year 15,999 18,823 34,822
Net pension liability 212,348 - 212,348
Total noncurrent liabilities 231,179 20,243 251,422
Total Liabilities 304,828 172,429 477,257
Deferred inflows of resources:
Pensions 55,349 -55,349
Total Deferred Inflows of Resources 55,349 -55,349
Net Position
Net investment in capital assets 578,796 1,554,612 2,133,408
Unrestricted 1,059,545 555,659 1,615,204
Total Net Position $1,638,341 $2,110,271 $3,748,612
130
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Activities
For the Year Ended December 31, 2018
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility
Housing
Authority
Nonmajor
Enterprise Funds
Total
Operating revenues
Charges for services $ 964,135 $ 285,370 $ 1,249,505
Other 12,595 117,529 130,124
Total operating revenues 976,730 402,899 1,379,629
Operating expenses
Cost of sales and services 569,267 99,845 669,112
Administration 94,032 403,525 497,557
Depreciation 59,147 173,799 232,946
Total operating expenses 722,446 677,169 1,399,615
Operating income (loss)254,284 (274,270)(19,986)
Nonoperating revenues (expenses)
Miscellaneous revenue 2,415 -2,415
Investment earnings 4,051 4,429 8,480
Intergovernmental grants 21,662 185,119 206,781
Gain (loss) on sale of assets 9,695 -9,695
Total nonoperating revenues (expenses)37,823 189,548 227,371
Income (loss) before contributions and transfers 292,107 (84,722)207,385
Capital contributions
Transfers (25,000)-(25,000)
Change in net position 267,107 (84,722)182,385
Net position - January 1, as previously stated 1,388,318 2,203,560 3,591,878
Cumulative effect of a change in accounting principle (17,084)(8,567)(25,651)
Net position - January 1, as restated 1,371,234 2,194,993 3,566,227
Net position - December 31 $1,638,341 $2,110,271 $3,748,612
131
City of Hopkins
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2018
Nonmajor Business-type
Activities-Enterprise Funds
Nonmajor
Refuse Housing
Enterprise
Funds
Utility Authority Total
Cash Flows from Operating Activities
Receipts from customers and users $ 980,617 $ 389,667 $ 1,370,284
Receipts from interfund services provided - - -
Payments to suppliers (356,859)(398,302)(755,161)
Payments to employees (211,054)(45,499)(256,553)
Payments for interfund services used (94,032) - (94,032)
Net cash used by operating activities 318,672 (54,134) 264,538
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 21,662 185,119 206,781
Taxes - - -
Transfers in (out)(25,000) - (25,000)
Miscellaneous income 2,415 - 2,415
Net cash provided (used) by noncapital and related financing activities (923) 185,119 184,196
Cash Flows from Capital and Related Financing Activities:
Issuance of Debt -
Construction of capital assets (188,034)(118)(188,152)
Proceeds from sales of capital assets 9,695 - 9,695
Interest and other payments - - -
Bond payments - - -
Net cash provided (used) by capital and related financing activities (178,339)(118)(178,457)
Cash Flows From Investing Activities
Interest received 5,709 4,429 10,138
Net increase (decrease) in cash and cash equivalents 145,119 135,296 280,415
Cash and cash equivalents - January 1 229,359 441,779 671,138
Cash and cash equivalents - December 31 $ 374,478 $ 577,075 $ 951,553
Reconciliation of Cash and Cash Equivalents at End of Year to Cash and
Investments per Statement of Net Position
Ending cash and cash equivalents per cash flow statement $ 374,478 $ 577,075 $ 951,553
Investments 956,506 - 956,506
Cash and Investments per Statement of Net Position $ 1,330,984 $ 577,075 $ 1,908,059
Reconciliation of operating loss to net cash used by operating activities:
Operating income (loss) 254,284 (274,270)(19,986)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Depreciation expense 59,147 173,799 232,946
(Increase) decrease in:
Accounts receivable 3,887 (13,232)(9,345)
Prepaid expense - (440)(440)
Pensions (deferred outflows)(7,748) - (7,748)
OPEB (deferred outflows)(2,832)(1,420)(4,252)
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable 11,006 69,996 81,002
Due to other funds - - -
Due to other governments (7,559) - (7,559)
Unearned revenue - - -
Net pension liability (42,972)(28,801)(71,773)
Total OPEB liability 18,831 20,234 39,065
Pension (deferred inflows) 32,628 - 32,628
Net cash used by operating activities $ 318,672 $ (54,134) $ 264,538 132
CITY OF HOPKINS, MINNESOTA
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the government, on a cost
reimbursement basis. Revenues and expenses are recognized on the accrual basis.
Revenues are recognized in the accounting period in which they are earned and
become objectively measurable; expenses are recognized in the period incurred, if
objectively measurable.
Equipment Replacement Fund – This fund accounts for the acquisition of machinery
and equipment. User charges are billed to the various City departments.
Insurance Risk Fund – This fund accounts for the dividends and deductibles relating
to property and casualty insurance coverage. Deductibles are paid from past dividends.
Users are charged only if the fund has a shortfall.
Employee Benefits Fund – This fund accounts for accrued employee benefits within
the governmental funds. User charges are billed to the various departments.
133
City of Hopkins
Combining Statement of Net Position
Internal Service Funds
December 31, 2018
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Assets
Current assets:
Cash and investments $ 225,954 $ 1,063,188 $ 316,661 $ 1,605,803
Accrued interest receivable 1,921 381 57 2,359
Total current assets 227,875 1,063,569 316,718 1,608,162
Property and equipment:
Machinery and equipment 10,164,846 -- 10,164,846
Less accumulated depreciation (5,447,923)-- (5,447,923)
Net property and equipment 4,716,923 --4,716,923
Total Assets 4,944,798 1,063,569 316,718 6,325,085
Liabilities
Current liabilities:
Accounts payable 342,770 --342,770
Compensated absences -884,053 -884,053
Total current liabilities 342,770 884,053 -1,226,823
Noncurrent liabilities:
Total noncurrent liabilities ----
Total Liabilities 342,770 884,053 -1,226,823
Net Position
Net investment in capital assets 4,753,482 -- 4,753,482
Unrestricted (151,454)179,516 316,718 344,780
Total Net Position $4,602,028 $179,516 $316,718 $5,098,262
134
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
Year Ended December 31, 2018
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Operating revenues
Charges for services $ 487,900 $- $ 21,803 $ 509,703
Operating expenses
Materials, supplies and services 251,966 -1,861 253,827
Administration 6,333 -397 6,730
Depreciation expense 856,695 --856,695
Total operating expenses 1,114,994 -2,258 1,117,252
Operating income (loss)(627,094)-19,545 (607,549)
Nonoperating revenues (expenses)
Miscellaneous revenue 5,870 --5,870
Investment earnings -3,453 1,009 4,462
Interest/fiscal agent expense (1,443)--(1,443)
Gain (loss) on sale of assets (42,540)--(42,540)
Total nonoperating revenues (expenses)(38,113)3,453 1,009 (33,651)
Income (loss) before contributions and transfers (665,207)3,453 20,554 (641,200)
Transfers and contributions
Transfers in 592,000 --592,000
Total transfers and contributions 592,000 --592,000
Change in net position (73,207)3,453 20,554 (49,200)
Total net position - January 1 4,675,235 176,063 296,164 5,147,462
Net position - December 31 $4,602,028 $179,516 $316,718 $5,098,262
135
City of Hopkins
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2018
Equipment Employee Insurance
Replacement Benefits Risk Totals
Cash Flows from Operating Activities
Receipts from customers and users $- $- $ 21,803 $ 21,803
Receipts from interfund services provided 487,900 - - 487,900
Internal activity-payments to other funds (24,056)- (24,056)
Payments to suppliers 88,959 - (1,553) 87,406
Payments for interfund services used (6,333) 48,111 (397)41,381
Net cash provided (used) by operating activities 546,470 48,111 19,853 614,434
Cash Flows from Noncapital Financing Activities
Transfers in 597,870 - - 597,870
Net cash provided by noncapital financing activities 597,870 - - 597,870
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (821,627) - - (821,627)
Proceeds from sales of capital assets (42,540) - - (42,540)
Interest and other payments (1,922) - - (1,922)
Capital lease payments (52,295) - - (52,295)
Net cash used by capital and related
financing activities (918,384) - - (918,384)
Cash Flows From Investing Activities (2)4,705 1,391 6,094
Net increase (decrease) in cash and cash equivalents 225,954 52,816 21,244 300,014
Cash and Cash Equivalents - January 1 - 66,191 - 66,191
Cash and Cash Equivalents - December 31 $ 225,954 $ 119,007 $ 21,244 $ 366,205
Reconciliation of Cash and Cash Equivalents at End of Year
to Cash and Investments per Statement of Net Position
Ending cash and cash equivalents per cash flow statement $ 225,954 $ 119,007 $ 21,244 $ 366,205
Investments - 944,181 295,417 1,239,598
Cash and Investments per Statement of Net Position $ 225,954 $ 1,063,188 $ 316,661 $ 1,605,803
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (627,094) $- $ 19,545 $ (607,549)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation expense 856,695 - - 856,695
(Increase) decrease in:
Due from other funds (24,056) - - (24,056)
Increase (decrease) in:
Accounts, compensated absences and accrued interest
payable 340,925 48,111 308 389,344
Net Cash Provided (Used) by Operating Activities $ 546,470 $ 48,111 $ 19,853 $ 614,434
136
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2017
SECTION III
STATISTICAL SECTION
137
CITY OF HOPKINS, MINNESOTA
STATISTICAL SECTION
This part of the City of Hopkins’ comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and the required supplementary information says about the city’s overall financial
health.
Contents Page
Financial Trends 140
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 148
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 152
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 156
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 158
These schedules contain information about the city’s operations and resources to
help the reader understand how the city’s financial information relates to the services
the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
138
139
City of Hopkins
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2009 2010 2011 2012
Governmental activities
Net investment in capital assets $ 32,759,480 $ 32,823,582 $ 31,666,432 $ 31,891,229
Restricted 11,952,783 8,613,114 8,250,360 8,684,347
Unrestricted 10,022 3,590,101 6,348,703 7,854,941
Total governmental activities net position $ 44,722,285 $ 45,026,797 $ 46,265,495 $ 48,430,517
Business-type activities
Net investment in capital assets $ 14,994,311 $ 16,279,028 $ 17,075,284 $ 16,405,495
Restricted - - - -
Unrestricted 1,655,927 1,073,329 731,674 2,262,236
Total business-type activities net position $ 16,650,238 $ 17,352,357 $ 17,806,958 $ 18,667,731
Primary Government
Net investment in capital assets $ 47,753,791 $ 49,102,610 $ 48,741,716 $ 48,296,724
Restricted 11,952,783 8,613,114 8,250,360 8,684,347
Unrestricted 1,665,949 4,663,430 7,080,377 10,117,177
Total primary government net position $ 61,372,523 $ 62,379,154 $ 64,072,453 $ 67,098,248
140
Schedule 1
Fiscal Year
2013 2014 2015 2016 2017 2018
$ 30,666,268 $ 31,272,253 $ 32,609,356 $ 33,833,387 $ 32,064,111 $ 37,136,053
10,014,203 16,967,889 20,016,574 17,743,963 18,544,263 16,547,512
9,575,287 1,902,270 (9,447,813) (18,308,556) (17,563,673) (14,432,266)
$ 50,255,758 $ 50,142,412 $ 43,178,117 $ 33,268,794 $ 33,044,701 $ 39,251,299
$ 16,621,198 $ 16,937,928 $ 17,893,856 $ 21,798,183 $ 23,990,746 $ 28,627,563
- - - - - -
2,469,397 1,954,212 1,419,018 435,435 1,443,445 1,733,552
$ 19,090,595 $ 18,892,140 $ 19,312,874 $ 22,233,618 $ 25,434,191 $ 30,361,115
$ 47,287,466 $ 48,210,181 $ 50,503,212 $ 55,631,570 $ 56,054,857 $ 65,763,616
10,014,203 16,967,889 20,016,574 17,743,963 18,544,263 16,547,512
12,044,684 3,856,482 (8,028,795) (17,873,121) (16,120,228) (12,698,714)
$ 69,346,353 $ 69,034,552 $ 62,490,991 $ 55,502,412 $ 58,478,892 $ 69,612,414
141
City of Hopkins
Changes in Net Position,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
General Government $ 1,679,040 $ 1,693,275 $ 1,719,970 $ 2,056,756 $ 2,108,141 $ 2,276,155
Public Safety 6,249,519 6,243,813 6,213,995 6,382,270 6,357,722 6,526,230
Health and Welfare 278,002 180,895 170,018 136,528 165,649 171,187
Highways and Streets 3,069,078 3,062,507 3,332,067 3,226,807 5,845,437 5,709,009
Urban Development and Housing 1,690,861 1,914,779 2,859,900 2,362,030 2,000,868 2,247,553
Culture and Recreation 1,482,349 1,505,513 1,644,834 1,726,812 1,857,743 1,941,912
Interest on long-term debt 1,025,771 895,873 871,902 811,914 908,264 711,697
Total governmental activities expenses 15,474,620 15,496,655 16,812,686 16,703,117 19,243,824 19,583,743
Business-type activities:
Water 1,209,508 1,196,947 1,263,835 1,365,542 1,387,807 1,540,940
Sewer 1,741,115 1,844,309 1,800,126 1,816,058 1,995,886 2,042,106
Storm Sewer 403,231 420,619 407,057 451,659 448,170 508,686
Refuse 786,522 738,398 778,044 862,286 825,329 834,113
Pavilion/Ice Arena 401,598 398,354 416,166 430,082 426,634 460,246
Housing and Redevelopment Authority 528,542 542,324 607,090 563,863 615,043 625,667
Total business-type activities 5,070,516 5,140,951 5,272,318 5,489,490 5,698,869 6,011,758
Total primary government expenses $ 20,545,136 $ 20,637,606 $ 22,085,004 $ 22,192,607 $ 24,942,693 $ 25,595,501
Program Revenues
Governmental activities:
Charges for services:
General Government $ 30,797 $ 17,169 $ 42,112 $ 40,360 $ 76,477 $ 56,635
Public Safety 284,160 124,338 186,611 159,642 180,548 118,248
Health and Welfare 9,265 32,135 41,815 55,331 57,032 57,235
Highways and Streets 42,150 56,902 73,519 78,226 75,840 96,573
Urban Development and Housing - - 206,916 3,444 228 242
Culture and Recreation 509,098 560,702 623,147 684,018 756,011 740,147
Operating grants and contributions 2,441,622 1,894,777 2,325,158 3,499,465 5,273,474 2,943,889
Capital grants and contributions 745,505 567,370 1,751,464 1,350,147 1,775,717 2,728,416
Total governmental activities program revenues 4,062,597 3,253,393 5,250,742 5,870,633 8,195,327 6,741,385
Business-type activities:
Charges for services:
Water 1,339,390 1,343,153 1,395,306 1,534,071 1,483,133 1,497,699
Sewer 1,598,717 1,812,585 1,838,949 2,015,166 1,999,333 2,025,763
Storm Sewer 800,843 803,889 803,417 801,345 799,603 802,898
Refuse 821,628 852,215 939,421 894,534 901,670 906,387
Pavilion/Ice Arena 368,228 363,591 385,748 70,976 65,055 31,914
Housing and Redevelopment Authority 279,860 258,388 255,188 255,921 272,109 256,884
Operating grants and contributions 150,814 216,596 190,442 698,769 561,111 795,199
Capital grants and contributions 142,691 328,515 28,250 206,681 144,076 -
Total business-type activities program revenues 5,502,171 5,978,932 5,836,721 6,477,463 6,226,090 6,316,744
Total primary government program revenues $ 9,564,768 $ 9,232,325 $ 11,087,463 $ 12,348,096 $ 14,421,417 $ 13,058,129
Net (Expense)/Revenue
Governmental activities $ (11,412,023) $ (12,243,262) $ (11,561,944) $ (10,832,484) $ (11,048,497) $ (12,842,358)
Business-type activities 431,655 837,981 564,403 987,973 527,221 304,986
Total primary government net expense $ (10,980,368) $ (11,405,281) $ (10,997,541) $ (9,844,511) $ (10,521,276) $ (12,537,372)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes $ 9,353,966 $ 9,827,813 $ 9,952,156 $ 10,354,188 $ 10,565,115 $ 11,207,914
Tax Increments 1,636,609 2,147,517 2,239,668 2,332,863 2,002,607 2,700,110
Unrestricted grants and contributions 309,609 306,215 312,519 20,724 21,152 20,510
Unrestricted investment earnings 170,960 121,229 108,956 106,304 105,213 193,546
Gain on sale of capital assets 9,796 - 42,343 38,427 34,651 27,235
Transfers 145,000 145,000 145,000 145,000 145,000 493,093
Total governmental activities 11,625,940 12,547,774 12,800,642 12,997,506 12,873,738 14,642,408
Business-type activities:
Property taxes - - - - - -
Grants & Contributions not restricted - - - - - -
Unrestricted investment earnings 12,841 9,138 8,319 9,040 18,788 24,503
Gain on sale of capital assets 367 - 26,879 760 21,855 -
Loss on disposal of capital assets (12,048)- - 8,000 - -
Transfers (145,000) (145,000) (145,000) (145,000) (145,000) (493,093)
Total business-type activities (143,840)(135,862)(109,802)(127,200)(104,357)(468,590)
Total primary government $ 11,482,100 $ 12,411,912 $ 12,690,840 $ 12,870,306 $ 12,769,381 $ 14,173,818
Change in Net Position
Governmental activities 213,917 304,512 1,238,698 2,165,022 1,825,241 1,800,050
Business-type activities 287,815 702,119 454,601 860,773 422,864 (163,604)
Total primary government $ 501,732 $ 1,006,631 $ 1,693,299 $ 3,025,795 $ 2,248,105 $ 1,636,446
142
Schedule 2
Fiscal Year
2015 2016 2017 2018
$ 6,656,991 $ 10,341,183 $ 6,751,459 $ 4,361,727
6,665,974 8,561,759 8,126,086 7,846,565
185,248 185,301 179,916 196,435
4,542,014 5,168,939 5,932,978 4,562,075
1,249,457 1,398,736 1,354,036 2,352,139
2,068,887 2,231,605 2,737,116 2,015,291
688,155 952,756 1,335,290 65,784
22,056,726 28,840,279 26,416,881 21,400,016
1,699,540 1,878,807 1,871,868 1,704,965
2,061,180 2,251,291 2,406,027 2,288,938
394,707 397,660 460,771 461,036
848,685 867,823 874,750 910,481
462,771 483,035 547,831 689,178
610,318 616,653 591,895 677,169
6,077,201 6,495,269 6,753,142 6,731,767
$ 28,133,927 $ 35,335,548 $ 33,170,023 $ 28,131,783
$ 82,686 $ 72,716 $ 175,390 $ 43,471
79,415 274,661 172,584 171,291
47,085 58,264 59,645 48,550
127,221 125,749 125,046 165,600
220,027 190,199 146,491 961,625
810,762 770,466 788,549 861,815
4,970,313 4,087,923 8,007,553 11,597,974
501,029 1,109,278 1,731,738 1,630,559
6,838,538 6,689,256 11,206,996 15,480,885
1,514,086 1,526,290 1,837,434 1,931,035
2,172,277 2,215,251 2,698,307 2,780,090
805,542 810,142 809,262 806,605
910,672 959,258 956,056 954,620
24,876 22,275 37,080 62,161
277,885 282,125 294,000 402,899
622,332 721,677 697,635 579,401
- 702,555 - -
6,327,670 7,239,573 7,329,774 7,516,811
$ 13,166,208 $ 13,928,829 $ 18,536,770 $ 22,997,696
$ (15,218,188) $ (22,151,023) $ (15,209,885) $ (5,919,131)
250,469 744,304 576,632 785,044
$ (14,967,719) $ (21,406,719) $ (14,633,253) $ (5,134,087)
$ 11,038,746 $ 11,994,436 $ 12,895,910 $ 14,343,939
2,920,681 2,959,459 2,146,730 2,433,504
20,510 20,510 20,510 56,990
279,418 124,406 168,437 225,337
27,535 62,013 69,883 45,002
(864,187) (2,089,914) (3,533,235) (4,218,053)
13,422,703 13,070,910 11,768,235 12,886,719
- 63,519 -81
- - - 2,758
64,161 13,231 20,760 13,153
23,477 9,776 (54) 17,210
-- - -
864,187 2,089,914 3,533,235 4,218,053
951,825 2,176,440 3,553,941 4,251,255
$ 14,374,528 $ 15,247,350 $ 15,322,176 $ 17,137,974
(1,795,485) (9,080,113) (3,441,650) 6,967,588
1,202,294 2,920,744 4,130,573 5,036,299
$ (593,191) $ (6,159,369) $ 688,923 $ 12,003,887
143
City of Hopkins
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2009 2010 2011 2012
General Fund
Reserved $ 196,790 $ 182,211 $- $ -
Unreserved 3,930,996 4,071,049 - -
Nonspendable - - 174,487 196,500
Assigned - - 591,676 508,767
Unassigned - - 4,266,048 4,488,876
Total general fund $ 4,127,786 $ 4,253,260 $ 5,032,211 $ 5,194,143
All other Governmental Funds
Reserved reported in:
Special Revenue Funds $ 3,528,529 $ 2,844,901 $- $ -
Capital Projects Funds - - - -
Debt Service Funds 6,021,748 4,850,159 - -
Unreserved reported in:
Special Revenue Funds (24,957) 590,281 - -
Capital Projects Funds 1,264,405 3,572,002 - -
Nonspendable - - 2,674,342 1,718,341
Restricted - - 5,823,862 6,312,043
Committed - - 926,349 2,679,389
Assigned - - 2,502,336 4,785,717
Unassigned - - (1,916,865) (2,090,788)
Total all other governmental funds $ 10,789,725 $ 11,857,343 $ 10,010,024 $ 13,404,702
Total all funds $ 14,917,511 $ 16,110,603 $ 15,042,235 $ 18,598,845
Note: The City began to use new categories of fund balance when it implemented GASB 54 in 2011.
Prior years were not retroactively reclassified.
144
Schedule 3
Fiscal Year
2013 2014 2015 2016 2017 2018
$- $- $- $- $- $ -
- - - - - -
231,608 213,499 227,113 87,263 135,373 192,368
426,768 339,055 340,189 340,857 245,494 245,494
4,823,141 5,184,081 5,439,798 5,437,774 5,471,420 5,179,824
$ 5,481,517 $ 5,736,635 $ 6,007,100 $ 5,865,894 $ 5,852,287 $ 5,617,686
$- $- $- $- $- $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
1,495 201 204 - - -
5,199,415 12,683,242 16,720,476 15,207,736 13,114,006 13,826,248
4,509,026 4,574,733 4,882,609 5,034,095 5,157,831 3,722,663
3,313,086 4,162,299 1,249,239 - 1,655,606 -
(2,011,214) (2,029,619) (1,960,918) (2,789,907) (1,536,968) (3,373,861)
$ 11,011,808 $ 19,390,856 $ 20,891,610 $ 17,451,924 $ 18,390,475 $ 14,175,050
$ 16,493,325 $ 25,127,491 $ 26,898,710 $ 23,317,818 $ 24,242,762 $ 19,792,736
145
City of Hopkins
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2009 2010 2011 2012
Revenues
Property Taxes $ 9,377,127 $ 9,795,318 $ 10,038,514 $ 10,403,945
Tax Increments 1,636,535 2,147,517 2,239,668 2,332,863
Special Assessments 1,071,406 1,128,467 1,446,922 1,307,949
Intergovernmental 1,220,766 1,215,163 1,931,333 1,549,464
Licenses and Permits 820,031 623,492 691,962 476,296
Charges for Services 875,470 800,115 908,106 787,724
Fines and Forfeits 148,172 138,894 174,303 253,530
Investment Earnings 135,569 106,128 94,409 94,235
Miscellaneous 1,024,879 589,604 701,683 1,881,347
Total revenues 16,309,955 16,544,698 18,226,900 19,087,353
Expenditures
Current:
General Government 1,552,712 1,576,676 1,598,885 4,038,893
Public Safety 5,888,481 5,881,633 5,895,640 6,144,206
Health and Welfare 273,760 177,732 168,202 136,169
Highways and Streets 2,139,351 2,082,853 2,337,018 2,193,209
Urban Redevelopment and Housing 1,586,083 1,881,610 2,826,172 2,348,694
Culture and Recreation 1,278,108 1,339,695 1,510,024 1,581,886
Capital outlay 1,556,121 1,358,792 1,972,143 2,470,049
Debt Service
Principal 1,805,000 4,665,000 2,065,000 1,635,000
Interest and fiscal charges 1,037,372 953,232 852,184 819,238
Bond Issuance Costs 34,972 49,233 - -
Total expenditures 17,151,960 19,966,456 19,225,268 21,367,344
Excess (deficiency) of revenues
over expenditures (842,005) (3,421,758) (998,368) (2,279,991)
Other Financing Sources (Uses)
Sale of Property 341 - - -
Proceeds from Issuance of Debt 2,865,000 2,710,000 - 5,985,000
Issuance of refunding debt - 1,805,000 - -
Discount on Debt (24,400)(45,150)- (12,830)
Premium on Debt - - - 65,705
Refunded bond payment - - (215,000) -
Transfer In 1,088,875 7,808,068 1,504,822 4,788,179
Transfer Out (943,875) (7,663,068) (1,359,822) (4,989,453)
Total other financing sources (uses) 2,985,941 4,614,850 (70,000) 5,836,601
Net change in fund balances $ 2,143,936 $ 1,193,092 $ (1,068,368) $ 3,556,610
Debt service as a percentage of
noncapital expenditures 18.2%30.2%16.9%13.0%
Note: Capital outlay has been adjusted for items not shown as capital expenditures on the entity wide statements and reclassified to their
respective expenditure category.
146
Schedule 4
Fiscal Year
2013 2014 2015 2016 2017 2018
$ 10,600,854 $ 11,212,334 $ 11,190,091 $ 12,181,695 $ 13,089,431 $ 14,414,205
2,002,607 2,700,110 2,920,681 2,959,459 2,146,730 2,433,504
1,634,903 1,202,401 1,003,444 1,404,258 1,753,923 1,121,267
3,775,172 3,272,977 2,234,195 2,698,372 3,743,694 8,466,571
649,672 569,585 489,373 686,785 811,826 702,431
884,354 835,960 848,775 1,000,847 1,008,699 933,517
251,170 229,807 258,924 223,131 230,804 190,395
94,024 172,012 257,543 115,925 157,870 215,005
1,343,592 1,148,505 1,474,048 1,870,874 2,463,487 2,104,422
21,236,348 21,343,691 20,677,074 23,141,346 25,406,464 30,581,317
2,019,932 2,126,004 2,586,582 2,886,837 3,285,079 2,872,325
6,089,431 6,154,320 6,253,424 6,718,046 7,154,007 7,600,081
164,237 167,088 176,248 181,666 177,734 190,623
4,709,377 4,495,659 3,180,023 3,797,748 4,546,602 3,283,862
1,979,001 2,192,453 1,219,526 1,337,387 1,306,327 2,294,347
1,688,876 1,747,614 1,851,741 2,016,229 2,107,616 2,024,126
4,272,737 2,144,714 8,789,979 7,325,037 11,753,941 19,310,698
3,265,000 1,970,000 8,570,000 3,075,000 3,080,000 3,890,000
853,433 709,367 646,387 855,114 1,050,401 1,496,932
- - - - - -
25,042,024 21,707,219 33,273,910 28,193,064 34,461,707 42,962,994
(3,805,676) (363,528) (12,596,836) (5,051,718) (9,055,243) (12,381,677)
- - - - - -
1,920,000 1,895,000 18,735,000 8,770,000 13,530,000 6,715,000
- 6,345,000 - 3,540,000 - -
- -- - - -
42,010 214,606 425,129 452,971 1,352,173 168,423
- - (3,927,887) (7,305,660) (3,678,549) -
2,948,556 9,351,659 8,513,635 8,112,133 12,157,526 9,870,518
(3,210,410) (8,858,566) (9,377,822) (12,098,618) (15,690,761) (8,822,290)
1,700,156 8,947,699 14,368,055 1,470,826 7,670,389 7,931,651
$ (2,105,520) $ 8,584,171 $ 1,771,219 $ (3,580,892) $ (1,384,854) $ (4,450,026)
19.80%13.70%37.60%18.80%18.20%22.80%
147
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
2009 $ 1,017,790 $ 266,458 $ 395,842 $ 192,138 $ 1,815 $ 182,899 $ 1,691,144 $ 47.574
2010 922,267 251,418 404,674 168,803 1,503 177,975 1,570,690 49.377
2011 883,348 251,141 397,506 173,349 1,272 179,699 1,526,917 56.463
2012 816,431 252,968 422,769 174,254 1,492 179,699 1,488,215 59.718
2013 867,012 269,812 405,840 174,255 1,492 179,699 1,538,712 63.819
2014 838,714 277,435 419,190 177,413 1,492 179,699 1,534,545 64.290
2015 917,367 313,183 430,897 181,538 1,506 179,699 1,664,792 62.503
2016 961,676 363,334 439,692 191,925 1,604 179,699 1,778,532 65.581
2017 999,228 406,566 530,859 198,797 1,350 254,549 1,882,251 64.485
2018 1,004,480 449,375 541,376 181,049 1,429 254,549 1,923,160 67.833
Notes:
(1) The direct tax rate is applied to the tax capacity of the property which is calculate by applying a statutory formula to the estimated market value
of the property. The tax capacity is then multiplied by the direct tax rate to determine the city taxes payable on a specific parcel.
(2) Tax exempt property is revalued on a six-year cycle. All other property is revalued on a three year cycle.
148
Schedule 6
City of Hopkins
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
City Direct Rate Overlapping Rates
Fiscal
Year Basic Rate
General
Obligation Debt
Service
Total
Direct
School
District
Hennepin
County
Metro
Council Other
Total
Overlapping
Total Direct and
Overlapping Tax
Rate
2009 41.346 6.228 47.574 20.080 40.413 2.579 5.834 68.906 116.480
2010 43.121 6.256 49.377 22.944 42.561 2.612 6.825 74.942 124.319
2011 49.638 6.825 56.463 26.456 45.840 2.949 7.540 82.785 139.248
2012 52.238 7.480 59.718 29.270 48.231 3.084 7.827 88.412 148.130
2013 55.902 7.917 63.819 29.730 49.461 3.242 8.241 90.674 154.493
2014 55.743 8.547 64.290 32.358 49.959 3.335 8.716 94.368 158.658
2015 53.884 8.619 62.503 30.340 46.398 3.006 8.094 87.838 150.341
2016 55.365 10.216 65.581 28.514 45.356 2.899 7.864 84.633 150.214
2017 54.251 10.234 64.485 25.611 44.087 2.821 7.755 80.274 144.759
2018 53.153 14.680 67.833 29.035 42.808 2.630 7.984 82.457 150.290
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.
149
Schedule 7
City of Hopkins
Principal Property Taxpayers,
Current Year and Ten Years Ago
2018 2009
Percentage Percentage
of Total of Total
City City
Tax Tax Tax Tax
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Colfin MIdwest NNN Investment, LLC $ 1,754,120 1 7.16 % $ - - - %
Super Valu 1,047,910 2 4.28 1,114,910 1 6.38
Heines Global REIT 9320 EXCEL 891,430 3 3.64 229,250 6 1.31
Greenfield Apartments, LLP 429,388 4 1.75 274,375 3 1.57
Ramsgate Apartments, LLC 292,813 5 1.19 225,000 8 1.29
Southwest Real Estate, Inc 264,848 6 1.08 243,750 5 1.40
The Luther Co., LTD 256,120 7 1.05 - - -
Duke Realty Corporation 243,990 8 1.00 249,250 4 1.43
Westside Property Owner, LLC 227,250 9 0.93 - - -
City Center Ventures, LLC 226,580 10 0.92 - - -
Hopkins Real Estate, LLC - - 229,250 7 1.31
Opus Northwest, LLC - - - - -
Auburn Limited Partnership - - - - -
Oak Ridge Country Club - - 167,590 9 0.96
Excelsior Crossings, LLC - 439,250 2 2.51
Steel & Bakken Investments LLC 135,250 10 0.77
Total $ 5,634,449 22.99 % $ 3,307,875 18.94 %
Total City 2018/2009 tax capacity $ 24,506,227 17,466,343
Source: Hennepin County, Minnesota Assessor's Office
Notes: Tax capacity is a percentage of total market value. For taxes payable in 2011 and forward these class rates are 1% for residential, 1.25% for apartments and
1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties.
150
Schedule 8
City of Hopkins
Property Tax Levies and Collections,
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year Fiscal Year of Levy Total Collections to Date
Percentage Collections in Percentage Outstanding Percentage
Fiscal Operating Debt Total Tax of Subsequent of Delinquent of Levy
Year Tax Levy Tax Levy Levy Amount Levy Years (4) Amount Levy Taxes Outstanding
2009 8,346,114 1,257,000 9,603,114 9,101,458 94.8% 188,029 9,289,487 96.7% 313,627 3.4% (1)
2010 8,733,685 1,267,000 10,000,685 9,533,671 95.3% 101,357 9,635,028 96.3% 365,657 3.8% (2)
2011 9,022,414 1,241,000 10,263,414 9,828,089 95.8% 185,324 10,013,413 97.6% 250,001 2.5% (3)
2012 9,119,591 1,306,400 10,425,991 10,181,764 97.7% 122,430 10,304,194 98.8% 121,797 1.2%
2013 9,219,774 1,306,400 10,526,174 10,319,805 98.0% 45,857 10,365,662 98.5% 160,512 1.5%
2014 9,268,754 1,421,461 10,690,215 10,506,537 98.3%(19,092) 10,487,445 98.1% 202,770 1.9%
2015 9,735,801 1,514,844 11,250,645 11,009,239 97.9% 35,506 11,044,745 98.2% 205,900 1.9%
2016 10,338,764 1,907,878 12,246,642 12,120,075 99.0%(17,211) 12,102,864 98.8% 143,778 1.2%
2017 11,151,866 2,103,366 13,255,232 12,984,829 98.0% 4,223 12,989,052 98.0% 266,180 2.0%
2018 11,403,994 3,149,223 14,553,217 14,187,600 97.5%- 14,187,600 97.5% 365,617 2.6%
Notes:
(1) For the year 2009 State of MN unalloted $246,865 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $91,797 and
the percentage of levy outstanding would be 0.9%.
(2) For the year 2010 State of MN unalloted $241,193 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $182,339 and
the percentage of levy outstanding would be 1.8%.
(3) For the year 2011 State of MN unalloted $257,696 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $153,757 and
the percentage of levy outstanding would be 1.5%.
(4) During the years 2010-2015 there were a significant number of tax court challenges that resulted in taxes being
rebated to taxpayers resulting in higher delinquent taxes for the years 2008-2015.
151
Schedule 9
City of Hopkins
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Governmental Activities Activities
General HRA Tax Special Total Percentage
Fiscal Obligation Lease Revenue Increment Assessments Capital Revenue Primary of Personal Per
Year Bonds Bonds Bonds Bonds Lease Bonds Government Income Capita
2009 $ 9,182,508 $ 2,404,246 $ 10,263,615 $ 2,335,972 $ 391,115 $ 6,262,966 $ 30,840,422 16.79% $ 1,764
2010 8,566,973 2,281,799 8,290,713 4,861,298 355,556 5,133,954 29,490,293 16.84% 1,676
2011 7,951,437 2,154,353 7,265,336 4,362,694 318,241 3,843,183 25,895,244 14.21% 1,472
2012 10,130,650 - 6,733,274 7,262,674 279,083 4,832,960 29,238,641 15.02% 1,652
2013 9,388,707 - 4,691,998 8,745,591 237,990 6,054,706 29,118,992 14.23% 1,623
2014 15,092,501 - 4,095,716 10,123,177 194,868 5,488,002 34,994,264 16.94% 1,900
2015 15,637,818 - 15,519,181 8,757,855 149,616 4,807,632 44,872,102 20.75% 2,436
2016 23,522,410 - 17,869,376 8,155,188 102,128 4,422,261 54,071,363 23.94% 2,812
2017 35,893,456 - 16,852,700 7,547,520 52,675 6,500,290 66,846,641 28.63% 3,518
2018 36,883,957 - 19,269,286 6,919,853 - 9,369,368 72,442,464 29.19% 3,797
Notes: Details regarding the District's outstanding debt can be found in note 9 of the notes to the financial statements.
See the Demographic and Economic Statistics schedule on schedule 14 for personal income
and population data.
152
Schedule 10
City of Hopkins
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General Obligation Bonds
Less Percentage of
General Tax Debt Service Actual Taxable
Fiscal Obligation Improvement Revenue Increment Fund Net Value of Per
Year Bonds Bonds Bonds Bonds Total Balance Bonded Debt Property Capita
2009 $ 11,586,754 $ 2,335,972 $ 8,667,212 $ 10,263,615 $ 32,853,553 $ 11,257,574 $ 21,595,979 1.277% $ 1,235
2010 10,848,772 4,861,298 7,415,753 8,290,713 31,416,536 7,688,050 23,728,486 1.511% 1,349
2011 10,105,790 4,362,694 5,997,536 7,265,336 27,731,356 6,650,512 21,080,844 1.381% 1,198
2012 10,130,650 7,262,674 4,832,960 6,733,274 28,959,558 6,543,187 22,416,371 1.506% 1,266
2013 9,388,707 8,745,591 6,054,706 4,691,998 28,881,002 7,871,612 21,009,390 1.365% 1,171
2014 15,092,501 10,123,177 5,488,002 4,095,716 34,799,396 14,373,448 20,425,948 1.331% 1,109
2015 15,637,818 8,757,855 4,807,632 15,519,181 44,722,486 15,540,533 29,181,953 1.750% 1,518
2016 23,522,410 8,155,188 4,422,261 17,869,376 53,969,235 11,342,561 42,626,674 2.397% 2,217
2017 35,893,456 7,547,520 6,500,290 16,852,700 66,793,966 10,596,245 56,197,721 2.986% 2,958
2018 36,883,957 6,919,853 9,369,368 19,269,286 72,442,464 8,599,909 63,842,555 3.320% 3,346
Notes:
Details regarding the city's outstanding debt can be found in note 9 of the notes to the financial statements
See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data
See the Demographic and Economic Statistics schedule 14 for population data
G.O Improvement bonds are included as they are backed by a general tax levy and specuial assessements levied against benefitted properties
G.O. Revenue bonds are included as they are backed by the full taxing authority of the City should revenues fall short of debt requirements
G.O. Tax Increment bonds are included as they are backed by property taxes levied against the properties benefitting from specific development for which the bonds were issued.
153
Schedule 11
City of Hopkins
Direct and Overlapping Governmental Activities Debt
As of December 31, 2018
Estimated
Estimated Share of
Net Debt Percentage Overlapping
Outstanding Applicable (a)Debt
Debt repaid with property taxes:
School Districts:
Hopkins ISD 270 $ 181,265,000 16.27% $ 29,491,816
St. Louis Park ISD 283 122,140,000 0.52% 635,128
Other Debt:
Hennepin County 1,225,230,000 1.18% 14,457,714
Hennepin Suburban Park District 66,300,000 1.65% 1,093,950
Hennepin Regional RR Authority 29,865,000 1.65% 492,773
Metropolitan Council (d) 1,549,087,966 0.56% 8,674,893
Subtotal - overlapping debt 54,846,273
City of Hopkins Direct Debt (b,c) 65,505,772 100.00% 65,505,772
Total Direct and Overlapping Debt: $ 120,352,045
Source: Hennepin County, Minnesota Taxpayer Services
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule shows the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process
recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying
the debt, of each overlapping government.
(a) The percentage of overlapping debt applicable is estimated using the taxable market values. Applicable percentages were estimated by
determining the portion of the county's and school district's taxable market value that is within the City's boundaries.
(b) City of Hopkins direct debt includes long-term debt instruments of the City which are bonds and capital leases of the government.
(c) Net Debt Outstanding excludes revenue bonds.
(d) 2018 Met Council Tax Capacity was used - 2019 N/A
154
Schedule 12
City of Hopkins
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
Legal Debt Margin Calculation for Fiscal Year 2018
Market value $ 1,923,162
Debt limit (3% of market value) 57,695
Debt applicable to limit:
General Obligation Bonds 34,730
Less: Amount set aside for repayment of
general obligation debt (2,555)
Total net debt applicable to limit 32,175
Legal debt margin $ 25,520
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt limit $ 50,734 47,121 $ 43,806 $ 42,189 $ 46,161 46,036 $ 48,168 $ 51,633 $ 54,888 $ 57,695
Total net debt applicable to limit 8,772 10,144 9,549 9,402 8,903 8,736 14,661 21,761 24,401 32,175
Legal debt margin $ 41,962 36,977 $ 34,257 $ 32,787 $ 37,258 37,300 $ 33,507 $ 29,872 $ 30,487 $ 25,520
Total net debt applicable to the limit
as a percentage of debt limit 17.29% 21.53% 21.80% 22.29% 19.29% 18.98% 30.44% 42.15% 44.46% 55.77%
155
Schedule 13
City of Hopkins
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per
Income (2)Capita
Fiscal (thousands Personal School Unemployment
Year Population (1)of dollars)Income (2) Enrollment (3)Rate (4)
2009 17,481 $ 182,075 $ 45,459 9,333 6.7
2010 17,591 174,808 43,265 9,241 6.5
2011 17,591 180,988 44,489 9,107 5.5
2012 17,701 193,488 47,136 8,556 5.1
2013 17,939 203,498 49,147 8,555 4.3
2014 18,413 206,789 49,460 8,489 3.8
2015 19,227 216,218 51,244 8,495 3.1
2016 19,227 225,882 53,121 8,327 3.8
2017 19,000 233,465 53,166 8,182 3.6
2018 19,079 215,086 59,736 8,152 2.8
Sources: (1) Metropolitan Council, except for 2010 and 2011 which is per the U.S. Census.
(2) U.S. Department of Commerce Bureau of Economic Analysis data for Minnesota Metropolitan Area
(3) Minnesota Department of Education and is for public and non-public schools in Hopkins School District #270
(4) Minnesota Department of Employment and Economic Development, based on December rates
156
Schedule 14
City of Hopkins
Principal Employers,
Current Year and Ten Years Ago
2018 2009
Percentage Percentage
of Total of Total
Taxpayer Employees Rank Employment Employees Rank Employment
Colfin Midwest NNN INV LLC (Cargil) 4,000 1 23.774 900 3 7.765 %
ISD 270 Hopkins (1) 1,041 2 6.187 1,222 2 10.544
SuperValu 707 3 4.202 1,350 1 11.648
Thermotech 400 4 2.377 152 7 1.311
US Post Office 314 5 1.866 - - -
Oak Ridge Country Club 185 6 1.100 184 5 1.588
Augustana Chapel View Care Center 185 7 1.100 219 4 1.890
US Bank 185 8 1.100 - - -
City of Hopkins 144 9 0.856 129 8 1.113
Walser Chrysler Dodge Jeep Ram 100 10 0.594 - - -
Hopkins Honda - - - 157 6 1.355
Hopkins Care Center - - - 125 9 1.079
SunGard Financial Systems 105 10 0.906
Total 7,261 43.156 % 4,543 39.199 %
Source: Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State Business Directory
Notes:
(1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
157
Schedule 15
City of Hopkins
Full-Time Equivalent City Employees by Type
Last Ten Fiscal Years
Full-time-Equivalent Employees as of December 31, 2018
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Government
Administrative Services 4.95 4.80 4.80 4.95 5.00 5.00 5.00 5.05 5.50 5.00
Finance 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.00 5.00 4.00
Municipal Building 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45
Community Services 9.95 9.95 9.95 9.80 9.80 9.70 9.70 8.65 7.20 8.95
Public Safety
Police 40.00 39.00 40.00 39.50 36.45 34.50 36.50 36.78 38.45 38.28
Fire 1.20 1.20 1.20 1.20 1.25 1.25 1.25 3.25 3.25 4.10
Public Works 18.70 17.77 17.25 17.69 17.69 17.09 18.09 17.58 18.09 19.98
Recreation
Activity Center 3.30 3.30 3.30 3.20 3.20 3.20 3.20 3.25 3.20 2.80
Skate Park 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Planning & Zoning 1.15 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35
Community Development - - - 0.85 0.85 0.85 0.85 1.50 0.85 0.85
Total General Government 85.35 83.47 83.95 83.79 81.69 79.04 82.04 82.91 84.39 86.81
Special Revenue Funds
Economic Development 1.75 1.75 1.60 1.60 1.15 1.60 1.60 1.25 1.60 2.00
Paratransit 0.20 - - - - - - - - -
Housing Rehabilitation 0.85 0.85 0.85 - - - - - - -
Parking 1.00 1.00 1.00 0.72 0.72 0.72 1.00 0.72 0.72 1.12
Section 8 - - - - - - - - - -
Communication 0.10 0.40 0.25 0.25 0.25 0.25 0.25 0.75 1.25 1.00
Depot Coffee House 1.00 1.00 1.50 1.50 2.50 2.50 2.50 5.25 5.25 5.00
Art Center 4.05 4.05 4.55 4.30 3.80 3.80 4.30 4.30 4.30 5.28
Total Special Revenue Funds 8.95 9.05 9.75 8.37 8.42 8.87 9.65 12.27 13.12 14.40
Enterprise Funds
Water 3.67 3.11 3.11 3.13 3.13 3.13 3.43 2.60 3.43 4.79
Sanitary Sewer 4.08 3.44 3.44 3.46 3.46 3.46 3.76 3.40 3.76 2.60
Refuse 4.12 3.40 3.58 3.89 3.89 3.89 3.89 4.09 4.09 3.39
Storm Sewer 0.46 0.42 0.42 0.63 0.63 0.63 0.63 0.43 0.63 0.63
Pavilion/Ice Arena 3.80 3.05 2.45 2.40 2.40 2.40 2.90 2.90 2.90 2.70
Housing and Redevelopment 2.05 2.05 2.20 2.20 2.20 2.20 2.20 2.40 2.40 2.40
Total General Government 18.18 15.47 15.20 15.71 15.71 15.71 16.81 15.82 17.21 16.51
Total 112.48 107.99 108.90 107.87 105.82 103.62 108.50 111.00 114.72 117.72
Source: City Finance Office
158
159
City of Hopkins
Operating Indicators by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2009 2010 2011 2012 2013
General Government
Elections 1 2 1 2 1
Registered voters 9,548 9,393 9,691 10,912 9,917
Number of votes cast 861 5,761 961 9,130 1,674
Voter participation (registered)9%61.30%9.90%83.70%16.90%
Public Safety
Police
Total Calls for Service 19,238 19,141 21,257 25,379 25,286
Sworn Officers 26 26 26 26 26
Traffic Stops 2,698 2,597 5,231 7,602 6,333
Parking Citations 925 914 864 958 979
Fire
Fires 38 58 40 36 38
False Alarm 107 98 95 91 101
Fire Runs 220 370 331 382 382
Medical Runs 56 66 77 141 178
Average Response Time (minutes) 4.2 4.0 4.0 4.0 4.2
Inspections
Building Permits 381 4 631 501 509
Value of Building Permits $ 54,688,290 $ 10,968,955 $ 19,211,258 $ 9,804,196 $ 44,183,445
Public Works
Miles of seal coating 0.55 0.95 0.85 5.36 5.49
Miles of crack sealing 3.71 1.99 7.26 4.13 3.75
Sidewalk repairs in square feet 6,228 5,252 5,831 5,770 5,172
Alley repairs in square yards 142 170 200 201 190
Culture and Recreation
Art Center
Bookings 5,392 4,913 4,307 307 4,440
Reserved Hours 33,780 30,414 26,406 26,406 27,442
Customer Visits for Events/Activities 203,100 205,319 219,975 219,975 213,487
Water
Gallons of water pumped (in millions) 813 794 744 781 817
Number of well house inspections 2,484 2,501 2,446 2,480 2,465
Number of hydrants flushed 130 144 151 142 138
Water Rate - Tier One $ 1.86 $ 1.90 $ 1.90 $ 1.96 $ 2.02
Water Rate - Tier Two
Water Rate - Tier Three
Sanitary Sewer
Sanitary sewage flow (in millions of gallons) 580.2 567.8 606.5 601.9 579.0
Miles of sewer lines jetted 14.2 15.4 14.6 14.7 16.2
Number of manholes checked/cleaned 1,290 1,301 1,421 1,337 1,413
Lift Station Maintenance checks 4,312 4,310 4,321 4,314 4,307
Sewer Rate $ 3.10 $ 3.40 $ 3.60 $ 3.75 $ 3.90
Refuse
Number of refuse accounts 2,689 2,695 2,687 2,681 2,706
Tons of refuse collected 2,335 2,298 2,265 2,470 2,136
Tons of recycled material (residential) 1,194 1,148 1,222 1,182 757
Refuse rate $15.85-21.85 15.85-21.85 15.85-21.85 15.85-21.85 16.85 - 24.30
Recycling rate $ 3.50 $ 3.75 $ 3.75 $ 4.00 $ 4.25
Pavilion/Ice Arena
Ice time rental hours 1,456 1,455 1,407 1,429 1,401
Turf use hours 624 624 758 869 865
Mezzanine rental use 495 776 1,150 1,260 1,386
Source: Various City Departments
Notes:
(1) Information not available is labeled N/A..
(2) In 2009 the Sewer Department began checking manholes on a monthly basis.
160
Schedule 16
Fiscal Year
2014 2015 2016 2017 2018
2 1 2 1 2
109,123 9,647 10,418 10,366 22,279
9,130 1,058 9,198 2,164 11,583
83.70%11.00%88.30%20.90%52.0%
26,140 23,535 24,549 26,724 26,063
26 28 27 27 27
5,741 6,055 6,910 6,232 6,212
820 725 640 662 542
51 18 81 43 31
100 103 130 123 110
428 467 566 415 322
195 177 171 119 143
4.2 4.4 4.2 4.2 4.2
455 501 451 485 405
$ 16,453,935 $ 12,631,596 $ 76,838,870 $ 19,553,988 $ 27,785,861
...
5.26 1.81 1.05 1.32 1.18
5.85 5.26 1.54 2.22 2.33
4,482 6,800 6,286 10,260 25,905
41 182 180 1,235 712
4,747 5,013 4,981 4,761 3,975
29,440 31,759 31,320 32,993 24,901
215,371 216,450 211,969 220,032 227,291
812 751 787 760 720
2,510 2,190 2,450 1,095 1,095
150 120 139 139 -
$ 2.10 $ 2.18 $ 2.18 2.44 2.6
2.81 3
3.23 3.45
628.6 615 605 598 560
14.6 12 15 15 13
1,400 274 1,025 274 302
4,401 4,350 4,283 1,945 1,095
$ 4.10 $ 4.30 $ 4.30 $ 5.81 $ 6.12
2,709 2,735 2,692 2,687 2,698
2,393 2,368 2,095 2,215 -
1,114 1,106 166 966 -
$ 16.85 - 24.30 $16.85 - 24.30 $16.85 - 24.30 $17.85-25.30 $17.85-25.30
$ 4.25 $ 4.50 $ 5.00 $ 5.00 $ 5.00
1,370 1,365 1,284 1,385 1,213
810 818 749 682 425
2,147 2,822 2,847 7,315 8,892
161
Schedule 17
City of Hopkins
Capital Asset Statistics by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 10 11 11 11 11 11 11 11 11 11
Fire
Stations 1 1 1 1 1 1 1 1 1 1
Public Works
Highways (miles) 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57
County Highways 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32
City Streets (miles) 47.50 47.50 47.50 47.50 47.50 47.50 47.50 47.5 47.5 47.5
Alleys (miles) 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52
Streetlights 398 398 398 398 398 398 398 398 398 398
Traffic Signals 44 44 44 44 44 44 44 44 44 44
Refuse collection trucks 3 3 3 3 3 3 3 3 3 3
Culture & Recreation
Parks
Parks 16 16 16 16 16 16 16 16 16 16
Park Trails 4 4 4 4 4 4 4 4 4 4
Park Acres 104 104 104 104 104 104 104 104 104 104
Park Shelters 10 10 11 11 11 11 11 11 11 11
Playgrounds 11 11 11 11 11 11 11 11 11 11
Skateboard Park/Inline Skating 1 1 1 1 1 1 1 1 1 1
Skating Rinks 7 7 7 7 7 7 7 7 7 7
Hockey Rinks 6 5 5 5 5 5 5 5 5 5
Basketball Courts 6 6 6 6 6 6 6 6 6 6
Pickleball Courts - - - - - - - - - 1
Softball Fields 4 4 4 4 4 4 4 4 4 4
Swimming Beach 1 1 1 1 1 1 1 1 1 1
Tennis Courts 8 8 8 8 8 8 8 8 8 8
Volleyball Courts 2 2 2 2 2 2 2 2 2 2
Watermains
Distribution System (miles) 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.6 52.6 52.6
Fire Hydrants 560 560 560 560 560 560 560 560 560 560
Storage Capacity (gallons in thous) 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3200 3200 3200
Water Connections 3,163 3,168 3,168 3,168 3,168 3,168 3,168 3168 3168 3168
Sanitary Sewer
Collection System (miles) 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46
Sewer Connections 3,081 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086
Storm Sewer
Pipe (miles) 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40
Parking
Parking Lots 7 7 7 7 7 7 7 7 7 7
Parking Ramp 1 1 1 1 1 1 1 1 1 1
Source: Various City Departments
162