2020 City of Hopkins, MN Annual Financial ReportCity of Hopkins, Minnesota
Comprehensive Annual Financial Report
for year ended December 31, 2020
20
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2020
Prepared by the Department of Finance
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2020
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 - Tax Increment District Super Valu
Special Revenue Fund 41
Statement of Net Position - Proprietary Funds 42
Statement of Revenues, Expenses and Changes in
Net Position - Proprietary Funds 44
Statement of Cash Flows - Proprietary Funds 46
Notes to Financial Statements 49
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2020
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 Contribution 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 99
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds 110
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 121
Parking 122
Communications 123
Arts Center 124
Hopkins Race & Equity Initiative 125
Depot Coffee House 126
Tax Increment District Entertainment Center 127
Tax Increment District Oaks of Mainstreet 128
5th Avenue Flats 129
Tax Increment District Moline 130
Tax Increment District Marketplace & Main 131
Combining Statement of Net Position - Nonmajor Enterprise Funds 134
Combining Statement of Revenues, Expenses and Changes in
Net Position - Nonmajor Enterprise Funds 135
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 132
Combining Statement of Net Position - Internal Service Funds 138
Combining Statement of Revenues, Expenses and Changes in
Net Position - Internal Service Funds 139
Combining Statement of Cash Flows - Internal Service Funds 140
D.Other Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budgetary Comparison Schedule – General Fund 142
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2020
Page
A.Financial Trends
Net Position by Component 148
Changes in Net Position 150
Fund Balances, Governmental Funds 152
Changes in Fund Balances, Governmental Funds 154
B.Revenue Capacity
Assessed and Actual Value of Taxable Property 156
Direct and Overlapping Property Tax Rates 157
Principal Property Taxpayers 158
Property Tax Levies and Collections 159
C.Debt Capacity
Ratios of Outstanding Debt by Type 160
Ratios of Net General Bonded Debt Outstanding 161
Direct and Overlapping Governmental Activities Debt 162
Legal Debt Margin Information 163
D.Demographic and Economic Information
Demographic and Economic Statistics 164
Principal Employers 165
E.Operating Information
Full-time Equivalent City Employees by Type 166
Operating Indicators by Function/Program 168
Capital Asset Statistics by Function/Program 170
III STATISTICAL SECTION
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CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2020
SECTION I
INTRODUCTORY SECTION
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City of Hopkins
2
June 28, 2021
To the Honorable Mayor, Members of the Hopkins City Council and the Citizens of the City of
Hopkins, Minnesota:
The Comprehensive Annual Financial Report of the City of Hopkins, Minnesota (the City) for
the fiscal year ended December 31, 2020 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, 2020, 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, 2020, 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.
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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 City Manager.
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 40-42 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 120-129.
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
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directed toward sound ratios of residential, commercial and industrial components, with the
current tax base approximately 69% single family residential and apartments, and 31%
commercial-industrial. The city’s population has grown slightly. The City is largely developed,
but has seen increased interest from developers since 2018 after the ground breaking for
Southwest Light Rail Transit, a fourteen mile light rail line with three stops in Hopkins.
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 save 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
In 2020, the nation saw its first year of economic decline since the Great Recession of 2008 and 2009.
The City spent much of 2020 reacting to the COVID-19 Pandemic. However, the City's tax base
continued to grow and there continue to be 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 2021 and beyond.
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.
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
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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.
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,
2019. 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
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7
Organizational Chart
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THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OFFICIALS
December 31, 2020
CITY COUNCIL
Term
Expires
Jason Gadd Mayor 12-31-21
Rick Brausen Councilmember 12-31-21
Brian Hunke Councilmember 12-31-23
Kristi Halverson Councilmember 12-31-21
Alan Beck Councilmember 12-31-23
CITY MANAGER
Michael J. Mornson Appointed
FINANCE DIRECTOR
Nick Bishop Appointed
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City of Hopkins
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CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2020
SECTION II
FINANCIAL SECTION
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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, 2020, 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 misstatement, 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 financial 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.
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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, 2020, 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.
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 of 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 financial 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 statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements 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 financial statements as a whole.
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.
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Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 28,
2021 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 compliance. 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 28, 2021
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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, 2020. 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 2020 fiscal year by approximately $82.4 million (net position). Of this amount,
approximately $5.8 million (unrestricted net deficit) is unavailable to meet the City’s ongoing
obligations to residents and creditors due in part to the recognition of the City's share of
unfunded pension liabilities.
The City’s total net position increased by approximately $10.3 million. Key factors in this
increase were intergovernmental grants, reimbursements and the addition of capital assets. The
increase was offset by the operating results in the water, sewer and pavilion funds.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of approximately $27.0 million, a increase of approximately $5.3 million
in comparison with the prior year's fund balance. The increase is due to additional grant
revenue in the General Gund and proceeds of refunding bonds with refunding occuring in 2021.
Approximately $3.7 million of fund balance is available for spending at the City’s discretion
(assigned or unassigned fund balance).
As of December 31, 2020, unassigned fund balance for the General Fund was approximately
$6.9 million, or 46% of total general fund expenditures. This compares to $ 5.6 million from
the prior year, a increase of approximately $1.3 million. The City's fund balance policy states
that the City will strive to maintain an unassigned fund balance in the General Fund of 42% or
five months of the previous year's General Fund expenditures. At December 31st unassigned
fund balance is at 46%.
The City of Hopkins total debt increased by approximately $7.1 million during the current fiscal
year due to the sale of general obligation and refunding bonds. Total new debt totaled $12.6
million while bond maturities and refundings totaled $7.9 million. Refunding bonds were issued
for approximately $4 million during 2020, with the related debt not being refunded until
January 2021.
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.
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Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a
private-sector business.
The statement of net 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.
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The City of Hopkins maintains forty-seven 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, Tax
Increment District Super Valu, Capital Improvement and Permanent Improvement Revolving fund all of
which are considered to be major funds. Data from the other forty-two 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 42-46 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 49-86 of this report.
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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 88-96
of this report.
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 99-140 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 $82,385,951 at the close of the most recent fiscal year.
Due to the recognition of pension liability a significant portion (83%) 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 residents. 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
2020 2019 2020 2019 2020 2019
Assets
Current and other assets $ 39,643,791 $ 30,626,891 $ 7,343,138 $ 3,734,763 $ 46,986,929 $ 34,361,654
Capital assets 97,139,252 95,394,401 42,954,754 39,848,335 140,094,006 135,242,736
Total assets 136,783,043 126,021,292 50,297,892 43,583,098 187,080,935 169,604,390
Deferred Outflows of Resources
Deferred charges on refunding 105,593 146,371 - - 105,593 146,371
Pensions 2,615,154 4,016,475 70,655 71,929 2,685,809 4,088,404
OPEB 201,786 121,741 28,445 17,501 230,231 139,242
Total deferred outflows of
resources 2,922,533 4,284,587 99,100 89,430 3,021,633 4,374,017
Liabilities
Other liabilities 4,659,283 5,186,231 512,872 669,383 5,172,155 5,855,614
Long-term liabilities
outstanding 81,128,904 79,863,054 18,056,075 9,775,775 99,184,979 89,638,829
Total liabilities 85,788,187 85,049,285 18,568,947 10,445,158 104,357,134 95,494,443
Deferred Inflows of Resources
Pensions 3,280,755 6,188,034 58,619 177,264 3,339,374 6,365,298
OPEB 17,565 20,093 2,544 2,888 20,109 22,981
Total deferred inflows of
Resources 3,298,320 6,208,127 61,163 180,152 3,359,483 6,388,279
Net Position
Net investment in capital assets 40,389,884 37,857,254 27,683,345 31,184,022 68,073,229 69,041,276
Restricted 20,092,105 16,056,962 - - 20,092,105 16,056,962
Unrestricted (9,862,920) (14,865,749) 4,083,537 1,863,196 (5,779,383) (13,002,553)
Total net position $ 50,619,069 $ 39,048,467 $ 31,766,882 $ 33,047,218 $ 82,385,951 $ 72,095,685
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 $10,290,266 during the current fiscal year.
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 $8,831,849 at December 31, 2020 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 $ 497,957
Deferred outflows of resources 2,685,809
Net pension liability (8,676,233)
Deferred inflows of resources (3,339,374)
Total $ (8,831,841)
(remainder of this page left blank intentionally)
19
Governmental and business-type activities. Governmental activities increased the City of Hopkins
net position by $11,570,603 and business-type activities decreased net position by $(1,280,336). 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
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $ 2,211,864 $ 2,573,353 $ 7,466,143 $ 7,439,300 $ 9,678,007 $ 10,012,653
Operating grants and
contributions 5,472,891 2,337,984 360,912 901,137 5,833,803 3,239,121
Capital grants and
contributions - - - - - -
General revenues:
Property taxes 19,934,102 16,937,577 288,525 40,054 20,222,627 16,977,631
Tax increments 3,812,055 3,209,850 - - 3,812,055 3,209,850
Franchise Taxes 1,190,241 1,201,549
Grants and contributions
not restricted 810,638 629,159 2,595 2,648 813,233 631,807
Investment earnings 129,584 396,461 10,174 17,925 139,758 414,386
Gain on sale of capital
assets 131,004 1,162 8,710 4,400 139,714 5,562
Miscellaneous 34,990 - 5,684 40,674 -
Total revenues 33,727,369 27,287,095 8,142,743 8,405,464 41,870,112 35,692,559
Expenses:
General government 2,949,580 5,435,138 - - 2,949,580 5,435,138
Public safety 8,112,419 9,200,365 - - 8,112,419 9,200,365
Health and welfare 182,017 189,917 - - 182,017 189,917
Highways and streets 5,554,108 5,175,949 - - 5,554,108 5,175,949
Urban redevelopment and
housing 3,281,052 2,431,931 - - 3,281,052 2,431,931
Culture and recreation 1,959,265 2,385,415 - - 1,959,265 2,385,415
Interest on long-term debt 1,946,713 212,538 - - 1,946,713 212,538
Water - - 1,805,150 2,204,922 1,805,150 2,204,922
Sewer - - 2,562,282 2,618,842 2,562,282 2,618,842
Storm sewer - - 581,641 605,214 581,641 605,214
Refuse - - 964,002 924,090 964,002 924,090
Pavilion/ice arena - - 1,038,880 1,081,741 1,038,880 1,081,741
Housing and
redevelopment authority - - 642,736 743,227 642,736 743,227
Total expenses 23,985,154 25,031,253 7,594,691 8,178,036 31,579,845 33,209,289
Increase in net position before
transfers
9,742,215 2,255,842 548,052 227,428 10,290,267 2,483,270
Transfers 1,828,388 (2,458,675) (1,828,388) 2,458,675 - -
Increase (decrease) in net position 11,570,603 (202,833) (1,280,336) 2,686,103 10,290,267 2,483,270
Net position - January 1 39,048,466 39,251,299 33,047,218 30,361,115 72,095,684 69,612,414
Net position - December 31 50,619,069 39,048,466 31,766,882 33,047,218 82,385,951 72,095,684
20
Governmental activities: Property taxes increased in 2020 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 2020, 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 $26,970,566, an increase of $5,326,595 in comparison with the prior year's
balance. The increase of fund balance in the current year was caused issuance of refunding bonds with
callable dates in 2021 and positive operating results in the General Fund. This was offset by the use of
bond proceeds to pay for construction costs.
Approximately 14% of fund balance or $3,747,234, 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 $6,922,014. This represents 94.1% 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 46.2% of total general fund expenditures while total fund balance
represents approximately 49.1% of that same amount.
The fund balance of the City of Hopkins general fund increased by $1,273,513 during the current fiscal
year. Revenues exceeded expenditures by $1,293,513 before transfers. The increase can be attributed to
revenue exceeding budget for intergovernmental grant revenue related to the COVID-19 Pandemic,
fees, licenses and permits. Total expenditures were also less than budgeted due to cost reductions
related to the COVID-19 Pandemic.
The Economic Development fund has a total fund balance of $4,462,104 of which $4,462,104 is
committed for economic development. The fund balance increased by $156,946 primarily as
intergovernmental grant revenue related to the COVID-10 Pandemic. The fund also saw significant
increases to charges for services that were directly offset by current expenditures.
The Tax Increment District Super Valu fund has a total fund balance of $6,717,128 of which all is
restricted for tax increment. The fund balance inreased by $460,563 due to tax increment collected in
excess of required payments.
23
The Permanent Improvement Revolving fund has a total fund balance of $(1,570,701) which is
unassigned. The fund balance decreased by $(473,249) as a result of capital outlay for street projects.
The fund has also recorded approximately $2.5 million of deferred inflows for unavailable revenue
related to reimbursements from other governmental agencies that will be recorded in future years.
The Capital Improvement Fund has a total fund balance of $562,528 which is restricted. The fund
balance increased by $ 242,744 primarily as the result cancelled or delayed projects.
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 deficit of the Water fund at the end of the year amounted to $(615,109). The decrease
in net position amounted to $(363,791) and is due to operating expenses and transfers-out exceeding
operating revenues. 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 2020 with smaller incremental increases planned annually.
Unrestricted net position of the Sewer fund at the end of the year amounted to $1,296,002. The
unrestricted net position will be used to pay for infrastructure improvements. The decrease in net
position amounted to $(471,697) and is due to operating expenditures and transfers-out exceeding
operating revenues. 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 2020 with smaller incremental
increases planned annually.
Unrestricted net position of the Storm Sewer Utility fund at the end of the year amounted to $2,324,783.
The unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $57,699 and is due to operating revenues exceeding operating expenditures and
transfers-out.
Unrestricted net deficit of the Pavilion fund at the end of the year amounted to $(547,671). The decrease
in net position amounted to $(373,943) and is due to the increased depreciation being recorded as a
result of a 2018 upgrade project. The facility was closed or operated a limited capacity during 2020 due
to the COVID-19 Pandemic. Operating costs, except depreciation, exceeded operating revenue in 2020.
The fund is expected to generate a positive cash flow in future periods.
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.
During the year revenues were over budgetary estimates by $923,043 due to increased
intergovernmental grants revenue related to the COVID-19 Pandemic, fees licenses and permits. This
was offset by a decrease in tax revenues and fines.
24
Expenditures were under budget by $350,321 and was due cost reductions primarily related to the
COVID-19 Pandemic. This was offset by capital outlay and other expenditures that were reimbursed by
grant revenue.
The net effect of these budget impacts was a increase in fund balance of $1,273,364 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, 2020, amounts to $140,094,006 (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 $8,172,999 for annual street and infrastructure
improvements.
A total of $10,834,241 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 $1,095,186. Major purchases include a wheel loader,
marked squad cars and public works trucks.
Vehicle and equipment deletions totaled $288,112. 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
2020 2019 2020 2019 2019 2018
Land $ 6,157,677 $ 6,157,677 $ 254,299 $ 254,299 $ 6,411,976 $ 6,411,976
Buildings 11,495,192 12,006,450 3,360,590 3,556,889 14,855,782 15,563,339
Infrastructure - - 7,084,206 7,473,428 7,084,206 7,473,428
Improvements 53,231,118 46,289,040 23,989,445 22,432,143 77,220,563 68,721,183
Vehicles 2,072,249 2,284,371 549,597 630,800 2,621,846 2,915,171
Equipment 2,840,860 2,412,719 323,177 348,083 3,164,037 2,760,802
Construction in progress 21,342,156 26,244,144 7,393,440 5,152,693 28,735,596 31,396,837
$ 97,139,252 $ 95,394,401 $ 42,954,754 $ 39,848,335 $ 140,094,006 $ 135,242,736
-
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 63-64 of
this report.
25
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $83,505,000. Of this amount $11,325,000 comprises tax increment redevelopment debt,
and $56,380,000 comprises general obligation and special assessment debt, all of which is backed by
the full faith and credit of the government. The remainder of the City of Hopkins debt, $15,800,000,
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
2020 2019 2020 2019 2020 2019
G.O. Tax increment bonds $ 11,325,000 $ 13,280,000 $-$-$ 11,325,000 $ 13,280,000
G.O. Equipment certificates 400,000 260,000 -- 400,000 260,000
G.O. Capital improvement
bonds
51,580,000 49,540,000 -- 51,580,000 49,540,000
G.O. Special assessment bonds 4,400,000 4,855,000 - - 4,400,000 4,855,000
Revenue bonds - - 15,800,000 8,440,000 15,800,000 8,440,000
$ 67,705,000 $ 67,935,000 $ 15,800,000 $ 8,440,000 $ 83,505,000 $ 76,375,000
The City of Hopkins total bonded debt increased by $7,130,000 during the current fiscal year. The
increase is a result of the issuance of $8,585,000 in G.O. Bonds that financed street reconstruction
project, utility improvements and equipment purchases; and the issuance of $3,990,000 of GO
Refunding Bonds . Total payments of $5,445,000 were made for principal and redemptions. 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, 2020, the debt limit for the City is $68,712,107. Of the total debt, $27,435,000
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 $41,277,107.
The City of Hopkins was upgraded to a “AA+” rating from Standard & Poor’s in January 2014 which
was most recently reaffirmed in November of 2020.
Additional information on the City of Hopkins long-term debt can be found in note 8 on pages 65-68 of
this report.
26
Economic Factors and Next Year’s Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2021 budget.
The City will continue a two year street reconstruction and infrastructure project as part of 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 basis for decision making. As a result of these factors the City prepared a budget for 2021
that included a general fund increase of 2.53% and an overall increase of 6.12% in expenditures.
During the current fiscal year, unassigned fund balance in the general fund was $6,922,014 or 46% 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, 2020
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and cash equivalents $ 29,745,079 $ 5,595,509 $ 35,340,588
Taxes receivable 302,174 3,142 305,316
Special assessments receivable 3,389,174 -3,389,174
Accounts receivable 406,550 463,444 869,994
Intergovernmental receivable 2,884,719 410,485 3,295,204
Interest receivable 35,592 219 35,811
Internal balances 415,049 (415,049)-
Inventories 121,871 33,941 155,812
Net pension asset 497,957 -497,957
Prepaid items 1,301,751 1,251,447 2,553,198
Property held for resale 543,875 -543,875
Capital assets, non depreciable 27,499,833 7,647,739 35,147,572
Capital assets, net of depreciation 69,639,419 35,307,015 104,946,434
Total Assets 136,783,043 50,297,892 187,080,935
Deferred Outflows of Resources
Deferred charge on refunding 105,593 -105,593
Pensions 2,615,154 70,655 2,685,809
OPEB 201,786 28,445 230,231
Total Deferred Outflows of Resources 2,922,533 99,100 3,021,633
Liabilities
Accounts payable 3,035,803 136,708 3,172,511
Salaries payable 523,708 105,756 629,464
Due to other governments 199,222 20,269 219,491
Accrued interest payable 835,743 204,948 1,040,691
Unearned revenue 64,807 16,746 81,553
Non current liabilities:
Compensated absences due within one year 557,673 76,574 634,247
Total OPEB liability due within one year 201,786 28,445 230,231
Compensated absences due in more than one year 739,881 61,592 801,473
Total OPEB liability due in more than one year 690,632 112,905 803,537
Net pension liability due in more than one year 7,703,813 972,420 8,676,233
Bonds due within one year 5,435,000 775,000 6,210,000
Bonds due in more than one year 65,800,119 16,057,584 81,857,703
Total Liabilities 85,788,187 18,568,947 104,357,134
Deferred Inflows of Resources
Pensions 3,280,755 58,619 3,339,374
OPEB 17,565 2,544 20,109
Total Deferred Inflows of Resources 3,298,320 61,163 3,359,483
Net Position
Net investment in capital assets 40,389,884 27,683,345 68,073,229
Restricted for:
Economic development 7,136,956 -7,136,956
Public Works 1,603,072 -1,603,072
Debt service 10,704,510 - 10,704,510
Net pension asset 497,957 -497,957
Communications 149,610 -149,610
Unrestricted (9,862,920)4,083,537 (5,779,383)
Total Net Position $50,619,069 $31,766,882 $82,385,951
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, 2020
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 $ 2,949,580 $152,975 $ 1,108,437 $- $ (1,688,168) $- $ (1,688,168)
Public safety 8,112,419 685,188 617,697 - (6,809,534)- (6,809,534)
Health and welfare 182,017 174,717 --(7,300)-(7,300)
Highways and streets 5,554,108 161,546 3,359,081 - (2,033,481)- (2,033,481)
Urban redevelopment and housing 3,281,052 473,402 133,749 - (2,673,901)- (2,673,901)
Culture and recreation 1,959,265 564,036 253,927 - (1,141,302)- (1,141,302)
Interest on long-term debt 1,946,713 --- (1,946,713)- (1,946,713)
Total Governmental Activities 23,985,154 2,211,864 5,472,891 -(16,300,399)-(16,300,399)
Business-Type Activities:
Water 1,805,150 2,208,012 20,304 --423,166 423,166
Sewer 2,562,282 2,926,712 1,380 --365,810 365,810
Storm sewer 581,641 800,605 3,134 --222,098 222,098
Refuse 964,002 969,796 38,496 --44,290 44,290
Pavilion/Ice arena 1,038,880 316,822 54,257 --(667,801)(667,801)
Housing and redevelopment authority 642,736 244,196 243,341 --(155,199)(155,199)
Total Business-type Activities 7,594,691 7,466,143 360,912 --232,364 232,364
Total Government $31,579,845 $9,678,007 $5,833,803 $-(16,300,399)232,364 (16,068,035)
General revenues:
Property taxes 19,934,102 288,525 20,222,627
Tax increments 3,812,055 -3,812,055
Franchise taxes 1,190,241 -1,190,241
Grants & contributions not restricted 810,638 2,595 813,233
Unrestricted investment earnings 129,584 10,174 139,758
Gain on disposal of capital assets 131,004 8,710 139,714
Miscellaneous 34,990 5,684 40,674
Transfers 1,828,388 (1,828,388)-
Total General Revenues 27,871,002 (1,512,700)26,358,302
Change in net position 11,570,603 (1,280,336) 10,290,267
Net position - January 1 39,048,466 33,047,218 72,095,684
Net position - December 31 $50,619,069 $31,766,882 $82,385,951
The notes to the financial statements are an integral part of this statement.
31
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2020
General Fund
Economic
Development
Tax Increment
District Super
Valu
Capital
Improvement
Permanent
Improvement
Revolving
Assets
Cash and cash equivalents $ 3,002,242 $ 3,525,206 $ 7,860,556 $ 471,198 $ 1,830,595
Taxes receivable 220,966 6,302 -1,357 -
Special assessments receivable ----398,513
Accounts receivable 155,929 2,579 -91,005 4,844
Rehabilitation loans receivable -----
Due from other governments 333,095 ---2,534,892
Interest receivable 3,727 1,151 699 -12,380
Due from other funds 4,571,244 718,547 ---
Inventories 121,871 ----
Prepaid items 68,123 ----
Property held for resale -222,156 321,719 --
Total Assets $8,477,197 $4,475,941 $8,182,974 $563,560 $4,781,224
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 314,656 $- $ 1,465,846 $- $ 552,297
Salaries payable 485,584 9,493 ---
Due to other funds ----2,868,062
Due to other governments 123,265 ----
Unearned revenue 46,560 ----
Total Liabilities 970,065 9,493 1,465,846 -3,420,359
Deferred inflows of resources:
Taxes and special assessments 149,630 4,344 -1,032 396,674
Unavailable revenue ----2,534,892
Total Deferred Inflows of Resources 149,630 4,344 -1,032 2,931,566
Fund balances:
Non-spendable 189,994 ----
Restricted --6,717,128 562,528 -
Committed -4,462,104 ---
Assigned 245,494 ----
Unassigned 6,922,014 --- (1,570,701)
Total Fund Balances (Deficits)7,357,502 4,462,104 6,717,128 562,528 (1,570,701)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $8,477,197 $4,475,941 $8,182,974 $563,560 $4,781,224
The notes to the financial statements are an integral part of this statement.
32
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2020
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and cash equivalents $ 10,768,837 $ 27,458,634
Taxes receivable 71,403 300,028
Special assessments receivable 2,990,661 3,389,174
Accounts receivable 130,044 384,401
Rehabilitation loans receivable 22,149 22,149
Due from other governments 16,732 2,884,719
Interest receivable 15,278 33,235
Due from other funds -5,289,791
Inventories -121,871
Prepaid items 1,233,628 1,301,751
Property held for resale -543,875
Total Assets $15,248,732 $41,729,628
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 639,691 $ 2,972,490
Salaries payable 28,631 523,708
Due to other funds 2,006,680 4,874,742
Due to other governments 75,957 199,222
Unearned revenue 18,247 64,807
Total Liabilities 2,769,206 8,634,969
Deferred inflows of resources:
Taxes and special assessments 3,037,521 3,589,201
Unavailable revenue -2,534,892
Total Deferred Inflows of Resources 3,037,521 6,124,093
Fund balances:
Non-spendable 1,233,628 1,423,622
Restricted 9,815,995 17,095,651
Committed 241,955 4,704,059
Assigned -245,494
Unassigned (1,849,573) 3,501,740
Total Fund Balances (Deficits)9,442,005 26,970,566
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $15,248,732 $41,729,628
The notes to the financial statements are an integral part of this statement.
33
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
December 31, 2020
Fund balances of governmental funds $ 26,970,566
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 127,147,413
Less: accumulated depreciation (34,273,860)
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 3,590,918
Grants and reimbursements 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.
2,534,892
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. 5,194,063
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 (67,705,000)
Unamortized premium/discount (3,530,119)
Accrued interest payable (835,743)
Deferred charges on refunding 105,593
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 497,957
Deferred outflows of resources related to pensions 2,615,154
Deferred outflows of resources related to OPEB 201,786
Net pension liability (7,703,813)
Total OPEB liability (892,418)
Deferred inflows of resources related to pensions (3,280,755)
Deferred inflows of resources related to OPEB (17,565)
Net position of governmental activities $ 50,619,069
34
35
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2020
General Fund
Economic
Development
Tax Increment
District Super
Valu
Capital
Improvement
Permanent
Improvement
Revolving
Revenues
Property taxes $ 12,451,755 $ 531,929 $- $ 74,726 $697
Franchise Fees 306,497 --362,460 -
Tax increments -- 2,522,880 --
Special assessments ----886,145
Intergovernmental 2,437,554 133,749 -7,882 -
Fees, licenses and permits 660,802 ----
Charges for services 250,265 399,960 ---
Fines 141,064 ----
Investment earnings 7,779 16,363 21,915 1 53,194
Other miscellaneous revenues 29,043 73,442 ---
Total Revenues 16,284,759 1,155,443 2,544,795 445,069 940,036
Expenditures
Current:
General government 2,691,648 --55,037 -
Public safety 8,262,598 ----
Health and welfare 179,037 ----
Highways and streets 2,904,021 ---867,696
Urban redevelopment and housing 110,296 968,497 700,932 --
Culture and recreation 615,776 ----
Debt service:
Principal retirement -----
Interest and fiscal fees -----
Capital Outlay 227,870 --147,288 3,220,953
Total Expenditures 14,991,246 968,497 700,932 202,325 4,088,649
Excess (deficiency) of revenues
over expenditures 1,293,513 186,946 1,843,863 242,744 (3,148,613)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ---- 2,675,364
Transfer out (20,000)(30,000) (1,383,300)--
Total Other Financing Sources (Uses)(20,000)(30,000)(1,383,300)-2,675,364
Net change in fund balances 1,273,513 156,946 460,563 242,744 (473,249)
Fund balance (deficit) - January 1 6,083,989 4,305,158 6,256,565 319,784 (1,097,452)
Fund balance (deficit) - December 31 $7,357,502 $4,462,104 $6,717,128 $562,528 $(1,570,701)
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, 2020
Non-major
Governmental
Funds
Total
Governmental
Funds
Revenues
Property taxes $ 4,555,966 $ 17,615,073
Franchise Fees 521,284 1,190,241
Tax increments 1,289,175 3,812,055
Special assessments 583,124 1,469,269
Intergovernmental 953,684 3,532,869
Fees, licenses and permits -660,802
Charges for services 481,642 1,131,867
Fines 13,394 154,458
Investment earnings 25,596 124,848
Other miscellaneous revenues 153,967 256,452
Total Revenues 8,577,832 29,947,934
Expenditures
Current:
General government 411,507 3,158,192
Public safety 144,266 8,406,864
Health and welfare -179,037
Highways and streets 258,162 4,029,879
Urban redevelopment and housing 1,462,302 3,242,027
Culture and recreation 947,507 1,563,283
Debt service:
Principal retirement 4,715,000 4,715,000
Interest and fiscal fees 2,064,981 2,064,981
Capital Outlay 196,876 3,792,987
Total Expenditures 10,200,601 31,152,250
Excess (deficiency) of revenues
over expenditures (1,622,769)(1,204,316)
Other Financing Sources (Uses)
Improvement bonds issued 5,280,000 5,280,000
Premium on improvement bonds 556,513 556,513
Transfer in 4,146,940 6,822,304
Transfer out (4,694,606) (6,127,906)
Total Other Financing Sources (Uses)5,288,847 6,530,911
Net change in fund balances 3,666,078 5,326,595
Fund balance (deficit) - January 1 5,775,927 21,643,971
Fund balance (deficit) - December 31 $9,442,005 $26,970,566
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, 2020
Net change in fund balances total governmental funds $ 5,326,595
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. 1,577,344
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds 3,275,044
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. 105,674
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 872,825
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. 413,121
Change in net position of governmental activities $ 11,570,603
38
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended December 31, 2020
Original Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 12,567,105 $ 12,567,105 $ 12,451,755 $ (115,350)
Franchise Fees 296,200 296,200 306,497 10,297
Intergovernmental 1,352,946 1,352,946 2,437,554 1,084,608
Fees, licenses and permits 577,015 577,015 660,802 83,787
Charges for services 251,050 251,050 250,265 (785)
Fines 198,050 198,050 141,064 (56,986)
Investment earnings 15,000 15,000 7,779 (7,221)
Other miscellaneous revenues 104,350 104,350 29,043 (75,307)
Total Revenues 15,361,716 15,361,716 16,284,759 923,043
Expenditures
General government 2,683,966 2,683,966 2,691,648 (7,682)
Public safety 8,090,353 8,090,353 8,262,598 (172,245)
Health and welfare 219,620 219,620 179,037 40,583
Highways and streets 3,414,844 3,414,844 2,904,021 510,823
Urban redevelopment and housing 108,153 108,153 110,296 (2,143)
Culture and recreation 781,081 781,081 615,776 165,305
Capital Outlay 43,550 43,550 227,870 (184,320)
Total Expenditures 15,341,567 15,341,567 14,991,246 350,321
Excess (deficiency) of revenues over
expenditures 20,149 20,149 1,293,513 1,273,364
Other Financing Sources (Uses):
Transfer out (20,000)(20,000)(20,000)-
Net change in fund blance $149 $149 1,273,513 $1,273,364
Fund balance - January 1 6,083,989
Fund balance - December 31 $ 7,357,502
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 442,951 $ 442,951 $ 531,929 $ 88,978
Intergovernmental --133,749 133,749
Charges for services --399,960 399,960
Investment earnings 25,000 25,000 16,363 (8,637)
Other miscellaneous revenues --73,442 73,442
Total Revenues 467,951 467,951 1,155,443 687,492
Expenditures
Current:
Urban redevelopment and housing 400,350 400,350 968,497 (568,147)
Total Expenditures 400,350 400,350 968,497 (568,147)
Other Financing Sources (Uses)
Transfer out (30,000)(30,000)(30,000)-
Net change in fund balance $37,601 $37,601 156,946 $119,345
Fund balance - January 1, reported 4,305,158
Fund balance - December 31 $ 4,462,104
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
Tax Increment District Super Valu
Year Ended December 31, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 2,200,000 $ 2,200,000 $ 2,522,880 $ 322,880
Investment earnings 17,000 17,000 21,915 4,915
Total Revenues 2,217,000 2,217,000 2,544,795 327,795
Expenditures
Urban redevelopment and housing 50,000 50,000 700,932 (650,932)
Total Expenditures 50,000 50,000 700,932 (650,932)
Other Financing Sources (Uses)
Transfer out (1,700,000) (1,700,000) (1,383,300) 316,700
Net change in fund balance $467,000 $467,000 460,563 $(6,437)
Fund balance - January 1, reported 6,256,565
Fund balance - December 31 $ 6,717,128
The notes to the financial statements are an integral part of this statement.
41
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2020
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 $- $ 1,254,476 $ 2,507,154 $- $ 1,833,879 $ 5,595,509 $ 2,286,445
Taxes receivable ---3,142 -3,142 2,146
Accounts receivable 145,037 262,214 11,895 173 44,125 463,444 -
Accrued interest receivable -161 -57 -218 2,358
Prepaid expenses 550,749 436,194 242,286 4,913 17,305 1,251,447 -
Due from other governments ---18 410,467 410,485 -
Inventory 31,157 2,741 43 --33,941 -
Total current assets 726,943 1,955,786 2,761,378 8,303 2,305,776 7,758,186 2,290,949
Noncurrent assets:
Capital Assets, non depreciable:
Land 14,097 5,150 26,800 -208,252 254,299 -
Construction in progress 3,161,226 2,172,453 2,047,389 -12,372 7,393,440 -
Capital Assets, depreciable
Building and structures 39,589 6,500 6,500 3,272,851 6,103,222 9,428,662 -
Distribution system 17,479,389 12,508,952 13,888,647 5,964,707 -49,841,695 -
Machinery and equipment 413,394 711,482 9,000 360,561 975,869 2,470,306 9,554,514
Less accumulated depreciation (7,792,420)(5,591,116)(5,342,476)(2,677,338)(5,030,297)(26,433,647)(5,289,272)
Total noncurrent assets 13,315,275 9,813,421 10,635,860 6,920,781 2,269,418 42,954,755 4,265,242
Total Assets 14,042,218 11,769,207 13,397,238 6,929,084 4,575,194 50,712,941 6,556,191
Deferred outflows of resources:
Pensions 23,361 12,829 3,490 14,842 16,133 70,655 -
OPEB 9,391 6,059 1,142 3,978 7,875 28,445 -
Total Deferred Outflows 32,752 18,888 4,632 18,820 24,008 99,100 -
Liabilities
Current liabilities:
Accounts payable 33,279 864 1,205 3,576 96,037 134,961 62,857
Salaries payable 18,325 10,319 2,926 7,500 66,686 105,756 -
Due to other funds 11,107 --203,942 200,000 415,049 -
Due to other governments 129 ---20,140 20,269 -
Compensated absences 23,934 12,830 6,397 46,282 48,723 138,166 1,297,554
Unearned revenue ---16,746 -16,746 -
Accrued interest payable 68,801 60,119 36,905 39,123 -204,948 -
Total current liabilities 155,575 84,132 47,433 317,169 431,586 1,035,895 1,360,411
42
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2020
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 9,391 6,059 1,142 3,978 7,875 28,445 -
Total OPEB liability due in more than one
year 37,795 28,192 3,129 14,981 28,808 112,905 -
Net pension liability due in more than one year 321,500 176,562 48,036 204,282 222,040 972,420 -
Revenue bonds payable (net of unamortized
discounts and premium)6,108,854 4,456,592 3,053,039 3,214,099 -16,832,584 -
Total noncurrent liabilities 6,477,540 4,667,405 3,105,346 3,437,340 258,723 17,946,354 -
Total Liabilities 6,633,115 4,751,537 3,152,779 3,754,509 690,309 18,982,249 1,360,411
Deferred inflows of resources:
Taxes and special assessments ---1,747 -1,747 1,717
Pensions 19,381 10,643 2,896 12,315 13,384 58,619 -
OPEB 920 662 83 321 558 2,544 -
Total Deferred Inflows of Resources 20,301 11,305 2,979 14,383 13,942 62,910 1,717
Net Position
Net investment in capital assets 8,036,663 5,729,251 7,921,329 3,726,683 2,269,419 27,683,345 4,265,242
Unrestricted (615,109)1,296,002 2,324,783 (547,671)1,625,532 4,083,537 928,821
Total Net Position $7,421,554 $7,025,253 $10,246,112 $3,179,012 $3,894,951 $31,766,882 $5,194,063
The notes to the financial statements are an integral part of this statement.
43
City of Hopkins
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2020
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 $ 2,205,383 $ 2,922,572 $ 799,266 $ 315,222 $ 1,199,440 $ 7,441,883 $ 603,819
Other 2,629 4,140 1,339 1,600 14,552 24,260 -
Total operating revenues 2,208,012 2,926,712 800,605 316,822 1,213,992 7,466,143 603,819
Operating expenses
Cost of sales and services 1,191,843 1,986,485 185,666 462,149 928,552 4,754,695 222,127
Administration 206,162 138,819 55,685 5,767 424,852 831,285 6,730
Depreciation 302,963 346,384 300,856 479,454 253,334 1,682,991 721,773
Total operating expenses 1,700,968 2,471,688 542,207 947,370 1,606,738 7,268,971 950,630
Operating income (loss)507,044 455,024 258,398 (630,548)(392,746)197,172 (346,811)
Nonoperating revenues (expenses)
Property taxes ---288,525 -288,525 109,608
Miscellaneous revenue 178 --4,788 718 5,684 736
Investment earnings --4,180 -5,994 10,174 4,002
Interest/fiscal agent expense (104,182)(90,594)(39,434)(91,510)-(325,720)-
Intergovernmental grants 21,162 1,851 3,262 54,802 282,430 363,507 259,043
Gain (loss) on sale of assets 8,710 ----8,710 131,004
Total nonoperating revenues
(expenses)(74,132)(88,743)(31,992)256,605 289,142 350,880 504,393
Income (loss) before contributions and
transfers 432,912 366,281 226,406 (373,943)(103,604)548,052 157,582
Transfers and contributions
Contributions (392,299)(486,153)---(878,452)-
Transfers in 60,816 33,309 27,569 --121,694 255,539
Transfers out (465,220)(385,134)(196,276)-(25,000) (1,071,630)-
Change in net position (363,791)(471,697)57,699 (373,943)(128,604)(1,280,336)413,121
Net position - January 1, as previously stated 7,785,345 7,496,950 10,188,413 3,552,955 4,023,555 33,047,218 4,780,942
Net position - December 31 $7,421,554 $7,025,253 $10,246,112 $3,179,012 $3,894,951 $31,766,882 $5,194,063
The notes to the financial statements are an integral part of this statement.
44
45
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2020
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 $ 2,212,120 $ 3,055,041 $ 799,094 $ 299,905 $ 1,293,645 $ 7,659,805 $ 25,200
Receipts for interfund services provided - - - - - 580,768
Internal activity-payments to other funds (1,093,365) - - 83,946 - (1,009,419) -
Internal activity-payments to other governments - - - - (13)(13) -
Payments to suppliers (1,276,578) (857,477) (340,572) (191,472) (765,892) (3,431,991) (250,700)
Payments to employees (485,580) (1,713,387) (85,900) (291,468) (487,215) (3,063,550) -
Payments for interfund services used (206,162) (138,819) (55,685)(5,767) (94,032) (500,465) 366,398
Net cash provided by (used in) by operating activities (849,565) 345,358 316,937 (104,856)(53,507)(345,633) 721,666
Cash Flows from Noncapital Financing Activities
Intergovernmental grants - 1,851 3,262 54,802 282,430 342,345 259,043
Taxes - - - 288,525 - 288,525 109,608
Transfers in 60,816 33,309 27,569 - - 121,694 256,310
Transfers out (465,220) (385,134) (196,276)- (25,000) (1,071,630) -
Interest and Dividends received - (4) 4,180 4,788 5,140 14,104 -
Net cash provided by (used in) noncapital financing
activities (404,404)(349,978)(161,265) 348,115 262,570 (304,962) 624,961
Cash Flows from Capital and Related Financing Activities:
Issuance of debt 3,004,000 2,144,600 2,126,400 20,000 - 7,295,000 -
Construction of capital assets (1,785,005) (1,452,981) (1,429,851) 28,614 (150,188) (4,789,411) (889,281)
Proceeds from sales of capital assets 8,710 - - - - 8,710 131,740
Interest and other payments (79,510) (70,661) (18,795) (97,480)- (266,446) -
Bond payments (234,250) (173,500) (127,250) (195,000)- (730,000) -
Net cash provided by (used in) capital and related
financing activities 913,945 447,458 550,504 (243,866) (150,188) 1,517,853 (757,541)
Cash Flows From Investing Activities
Interest received 178 - - - - 178 3,188
Net increase (decrease) in cash and cash equivalents (339,846) 442,838 706,176 (607)58,875 867,436 592,274
Cash and cash equivalents - January 1 339,846 563,760 599,630 607 1,728,036 3,231,879 749,990
Cash and cash equivalents - December 31 $- $ 1,006,598 $ 1,305,806 $- $ 1,786,911 $ 4,099,315 $ 1,342,264
46
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2020
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 $- $ 1,006,598 $ 1,305,806 $- $ 1,786,911 $ 4,099,315 $ 1,342,264
Investments - 247,878 1,201,348 - 46,968 1,496,194 944,181
Cash and Investments per Statement of Net Position $- $ 1,254,476 $ 2,507,154 $- $ 1,833,879 $ 5,595,509 $ 2,286,445
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ 507,044 $ 455,024 $ 258,398 $ (630,548) $ (392,746) $ 197,172 $ (346,811)
Adjustments to reconcile operating income
(loss) to net cash provided by (used in) operating
activities:
Depreciation expense 302,963 346,384 300,856 479,454 253,334 1,682,991 721,773
(Increase) decrease in:
Accounts receivable 4,108 128,329 (1,511) 15,965 79,640 226,531 2,149
Inventory (968)534 - - (434) -
Prepaid expense (549,534) (308,675) (242,286)(4,913)(1,385) (1,106,793) -
Pensions (deferred outflows) 421 231 63 268 291 1,274 -
OPEB (deferred outflows)(3,203)(1,723)(536)(1,712)(3,770) (10,944) -
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable 292 (265,148) 4,503 (3,086) 26,962 (236,477) 344,555
Due to other funds (1,093,365) - - 83,946 - (1,009,419) -
Due to other governments 97 - - - 16,715 16,812 -
Unearned revenue - - - (32,882)- (32,882) -
Net pension liability 19,021 10,446 2,842 12,086 13,136 57,531 -
Total OPEB liability 2,886 1,552 483 1,543 (18,473) (12,009) -
Pensions (deferred inflows)(39,226) (21,542)(5,861) (24,924) (27,085) (118,638) -
OPEB (deferred inflows)(101)(54)(14)(53)(119)(341) -
Net cash provided (used) by operating activities $ (849,565) $ 345,358 $ 316,937 $ (104,856) $ (53,500) $ (345,626) $ 721,666
The notes to the financial statements are an integral part of this statement.
47
48
NOTES TO THE
FINANCIAL STATEMENTS
49
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
50
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 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 capital improvement fund accounts for the payments made towards various improvement projects in the city.
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
2012B, 2013A, 2016C, 2017B, 2019A, 2019B, 2020A and 2020B 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 2012B, 2013A, 2017B, 2019A, 2019B, 2020A and 2020B are included as part of this fund since
revenues of the sewer fund are pledged to pay principal and interest on this bond.
The storm sewer utility fund accounts for the operations and improvements of the storm water drainage system. The
storm water bond issues of 2010B, 2012B, 2013A, 2017B, 2020A and 2020B are included as part of this fund since
revenues of the storm sewer fund are pledged to pay principal and interest on these bonds.
51
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The pavilion fund accounts for the operations and improvements of the city owned ice arena. The pavilion
equipment certificates 2012B and 2020B are included as part of this fund. Additionally, 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.
52
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
53
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 three items that qualify for reporting in this category. It is the deferred charge on refunding reported
in the government-wide statement of net position, the deferred charge for pensions (see Pension section below for
explanation) and deferred charge on post employment benefits other than pensions (see OPEB 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 two items that qualifies for reporting in this category. It is the deferred charge for pensions (see
Pension section below for explanation) and deferred charges on post employment benefits other than pension (see
OPEB 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
54
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including
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.
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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, 2020, there were 7 notes/bond
issues outstanding, with an aggregate principal amount payable of approximately $31 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.
56
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 $ 3,792,987
Depreciation expense (2,215,643)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position
of governmental activities $ 1,577,344
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 $ (4,715,000)
Issuance of general obligation bonds 4,485,000
Add premium 473,061
Amortization of deferred losses on refunding 40,782
Amortization of bond premium and discount (285,500)
Prior year interest expense (939,760)
Accrue interest expense for current year 835,743
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities $ (105,674)
57
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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, 2020, actual expenditures exceeded the budgeted amounts in the following funds:
Economic Development $ 568,147
Parking 11,843
Communications 4,336
Tax Increment District 5th Ave Flats 3,598
Tax Increment District SuperValu 650,932
Tax Increment District Oakes of Mainstreet 334,846
Tax Increment District Marketplace & Main 18,599
Tax Increment District Moline 825,048
These over expenditures were funded by greater than anticipated revenues of the Economic Development,
Communications, Tax Increment of Marketplace and Main and Tax Increment District Moline funds, from fund
balance in the Parking, Tax Increment Districts 5th Ave Flats, and Tax Increment District Oakes of Mainstreet 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.
58
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
C. FUND BALANCE DEFICITS
At December 31, 2020, 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:
Art Center $ 1,020,020
Permanent Improvement Revolving 1,570,701
State Chemical Assessment Team 27,156
Depot Coffee House 90,680
5th Avenue Flats 399,328
Tax Increment District Marketplace & Main 186,339
Tax Increment Revenue Bonds of 2016D 2,286
Pavilion Addition 123,616
D. NET POSITION RESTRICTED BY ENABLING LEGISLATION
The government-wide statement of net position reports $7,136,956 in restricted net position for economic development,
of which $7,114,775 is restricted by enabling legislation. The remaining $22,181 is CDBG funds restricted by outside
parties.
4. DEPOSITS AND INVESTMENTS
As of December 31, 2020 the City had the following deposits and investments:
Investment Type Fair Value
Government sponsored entities $ 4,005,022
Municipal obligations 105,354
Negotiable certificates of deposit 980,005
Money market mutual fund 346,943
Deposits 29,903,264
Total fair value cash and investments $ 35,340,588
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.
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020 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
Fannie Mae $ 2,004,951 $ 2,004,951 $ - $ - $ -
FHLB 2,000,071 2,000,071 - - -
Municipal obligations 105,354 - 105,354 - -
Negotiable certificates of deposit 980,005 980,005 - - -
Money market mutual fund 346,943 - - - 346,943
$ 5,437,324 $ 4,985,027 $ 105,354 $ - $ 346,943
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, 2020.
Quality Ratings
Not
Total AAA AA Rated
Investment Type:
Government securities
Fannie Mae $ 2,004,951 $- $ 2,004,951 $ -
FHLB 2,000,071 - 2,000,071 -
Municipal obligations 105,354 - 105,354 -
Negotiable certificates of deposit 980,005 - - 980,005
Money market mutual fund 346,943 - - 346,943
$ 5,437,324 $- $ 4,110,376 $ 1,326,948
60
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020 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.
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, 2020, 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 5.66% and
5.67%, 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.
6261
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
As of December 31, 2020 the City's investments fall into the following categories of fair value:
Level 1 Level 2 Level 3 Total
U.S. Government Securities $- $ 4,005,022 $ - $ 4,005,022
Municipal Obligations - 105,354 - 105,354
Negotiable Certificates of Deposit - 980,005 - 980,005
$- $ 5,090,381 $ - 5,090,381
Investments and Deposits measured at
cost or amortized cost 30,250,207
$ 35,340,588
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62
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2020 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 26,244,144 3,492,789 - (8,394,777) 21,342,156
Total not being depreciated 32,401,821 3,492,789 - (8,394,777) 27,499,833
Capital assets, being depreciated
Buildings 20,724,855 - - - 20,724,855
Other Improvements 68,520,738 182,846 - 8,394,777 77,098,361
Vehicles 5,026,981 148,679 (164,149)- 5,011,511
Machinery & equipment 5,611,155 856,238 (99,569)- 6,367,824
Total being depreciated 99,883,729 1,187,763 (263,718) 8,394,777 109,202,551
Less accumulated depreciation
Buildings (8,718,405) (511,258) - - (9,229,663)
Other Improvements (22,231,698) (1,635,545) - - (23,867,243)
Vehicles (2,742,610) (360,801) 164,149 - (2,939,262)
Machinery & equipment (3,198,436) (428,097) 99,569 - (3,526,964)
Total accumulated depreciation (36,891,149)(2,935,701) 263,718 - (39,563,132)
Total capital assets, being
depreciated, net 62,992,580 (1,747,938)- 8,394,777 69,639,419
Governmental activities capital
assets, net $ 95,394,401 $ 1,744,851 $- $- $ 97,139,252
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type Activities:
Capital assets, not being depreciated
Land $ 254,299 $- $- $- $ 254,299
Construction in progress 5,152,694 4,680,210 - (2,439,464) 7,393,440
Total not being depreciated 5,406,993 4,680,210 - (2,439,464) 7,647,739
Capital assets, being depreciated
Buildings 9,370,132 58,530 - - 9,428,662
Infrastructure 21,273,354 - - - 21,273,354
Other Improvements 26,128,877 - - 2,439,464 28,568,341
Vehicles 1,385,882 39,685 (24,398)- 1,401,169
Machinery & equipment 1,058,151 10,985 - - 1,069,136
Total being depreciated 59,216,396 109,200 (24,398) 2,439,464 61,740,662
Less accumulated depreciation
Buildings (5,813,243) (254,829) - - (6,068,072)
Infrastructure (13,799,926) (389,222) - - (14,189,148)
Other Improvements (3,736,337) (842,562) - - (4,578,899)
Vehicles (715,480) (160,487) 24,398 - (851,569)
Machinery & equipment (710,068) (35,891) - - (745,959)
Total accumulated depreciation (24,775,054)(1,682,991) 24,398 - (26,433,647)
Total capital assets, being
depreciated, net 34,441,342 (1,573,791)- 2,439,464 35,307,015
Business-type activities capital
assets, net $ 39,848,335 $ 3,106,419 $- $- $ 42,954,754
63
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 52,995
Public safety 201,375
Highways and streets 1,547,443
Culture and recreation 412,115
Capital assets held by the government's internal service funds are 721,773
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities $ 2,935,701
Business-type activities:
Water $ 302,963
Sewer 346,384
Storm Sewer 300,856
Refuse 64,719
Pavilion/Ice arena 479,454
Housing and Redevelopment Authority 188,615
Total depreciation expense - business-type activities $ 1,682,991
Construction commitments
The City has active construction projects as of December 31, 2020. The projects include streets and other improvements.
The City’s commitment with contractors related to these projects is $6,971,437.
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 remaining contract commitment totals
$323,375 and is being paid in annual installments.
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, 2020:
Due from Other Funds
Economic
General Development Total
Due to other funds:
Non-major governmental $ 1,288,133 $ 718,547 $ 2,006,680
Permanent Improvement 2,868,062 - 2,868,062
Water 11,107 - 11,107
Pavilion 203,942 - 203,942
Non-major enterprise 200,000 - 200,000
Total due to other funds $ 4,571,244 $ 718,547 $ 5,289,791
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.
64
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31, 2020:
Transfers in
Permanent
Improvement Non-major
Internal
Service Storm
Revolving Governmental Funds Water Sewer Sewer Total
Transfers out:
General $ - $ 20,000 $ - $ - $ - $ - $ 20,000
Economic Development - 30,000 - - - - 30,000
Tax Increment
Super Valu - 1,383,300 - - - - 1,383,300
Water - 465,220 - - - - 465,220
Sewer - 385,134 - - - - 385,134
Storm Sewer - 196,276 - - - - 196,276
Non-major governmental 2,675,364 1,642,010 255,539 60,816 33,309 27,569 4,694,607
Non-major
business-type - 25,000 - - - 25,000
Total transfers in $ 2,675,364 $ 4,146,940 $ 255,539 $ 60,816 $ 33,309 $ 27,569 $ 7,199,537
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
$80,000 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 of principal and premium from government wide net position to Water and Sewer funds for 2019B
Refunding Issue.
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 April 21, 2020 the City issued $8,585,000 General Obligation Bonds series 2020A for street reconstruction and
utility improvements. The bonds bear interest at rates ranging from 2.00% to 5.00% , and have a final maturity date of
February 1, 2036.
65
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
Refunding Bonds
On December 30, 2020 the City issued $3,990,000 General Obligation Refunding Bonds, Series 2020B for refunding
$2,315,000 of General Obligation Bonds, Series 2013A and $2,350,000 of General Obligation Bonds Series, 2012B.
The bonds bear interest at a rate of 5.00%, and have a final maturity date of February 1, 2029. Future combined debt
service payments will be reduced by $633,418 with a present value savings of $212,866. The 2012B and 2013A
bonds were called and paid on January 8, 2021 and February 1, 2021, respectively.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Governmental activities 0.35 – 4.00% $ 52,160,000 $ 45,290,000
Governmental activities – refunding 0.50 – 5.00% 26,235,000 18,015,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2021 $ 4,975,000 $ 1,862,199
2022 5,500,000 1,726,121
2023 5,685,000 1,559,585
2024 4,660,000 1,397,500
2025 4,995,000 1,238,506
2026-2030 24,245,000 3,766,864
2031-2036 12,850,000 815,388
2037-2040 395,000 8,690
$ 63,305,000 $ 12,374,853
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 $ 4,400,000
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2021 $ 460,000 $ 98,800
2022 465,000 88,350
2023 475,000 77,750
2024 490,000 66,875
2025 500,000 55,700
2026-2030 2,010,000 107,125
$ 4,400,000 $ 494,600
66
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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 – 2.2% 760,000 415,000
Water construction & replacement 2.0 - 2.5% 860,000 545,000
Water construction & replacement 2.0 - 2.0 % 930,000 755,000
Water construction & replacement 3.0 - 4.0% 272,650 245,100
Water construction & replacement 3.0 - 5.0% 444,500 444,500
Water - refunding 2.0 - 5.0% 355,000 295,000
Water construction & replacement 2.0 - 5.0% 2,204,000 2,204,000
Water - refunding 2.0 - 3.0% 800,000 800,000
Sanitary sewer construction & replacement 2.0 – 2.2% 170,000 90,000
Sanitary sewer construction & replacement 2.0 - 2.5% 490,000 310,000
Sanitary sewer construction & replacement 3.0 - 4.0% 1,119,300 1,006,200
Sanitary sewer construction & replacement 3.0 - 5.0% 190,500 190,500
Sanitary sewer - refunding 2.0 - 5.0% 440,000 365,000
Sanitary sewer construction & replacement 2.0 - 5.0% 1,809,600 1,809,600
Sanitary sewer - refunding 2.0 - 3.0% 335,000 335,000
Storm sewer – refunding 0.5 – 2.9% 875,000 245,000
Storm sewer construction & replacement 2.0 – 2.2% 320,000 170,000
Storm sewer construction & replacement 2.0 - 2.5% 380,000 240,000
Storm sewer construction & replacement 3.0 - 4.0% 43,050 38,700
Storm sewer construction & replacement 2.0 - 5.0% 1,786,400 1,786,400
Storm sewer – refunding 2.0 - 3.0% 340,000 340,000
Pavilion equipment certificates 2.0 – 2.0% 175,000 40,000
Pavilion construction & replacement 3.0 – 3.0% 3,285,000 3,110,000
Pavilion equipment certificates 2.0 - 3.0% 20,000 20,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2021 $ 775,000 $ 462,307
2022 960,000 428,658
2023 1,290,000 392,456
2024 1,235,000 358,498
2025 1,270,000 304,473
2026-2030 5,770,000 952,841
2031-2035 4,010,000 264,600
2036-2040 490,000 4,900
$ 15,800,000 $ 3,168,733
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2020, the debt limit for the City is $68,712,107. Of the total debt, $27,435,000 of general obligation
and revenue bonds is applicable to the limit. The legal debt margin is $41,277,107.
67
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2020, was as follows:
Beginning Ending Due Within
Balance Additions Deductions Transfers Balance One Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds $ 13,280,000 $- $ 1,955,000 $- $ 11,325,000 $ 945,000
General obligation bonds 49,800,000 5,280,000 2,305,000 (795,000) 51,980,000 4,030,000
Total general obligation bonds 63,080,000 5,280,000 4,260,000 (795,000) 63,305,000 4,975,000
Special assessment bonds 4,855,000 - 455,000 - 4,400,000 460,000
Less deferred amounts
For issuance discounts (11,160)- 6,043 - (5,117) -
For issuance premiums 3,353,717 556,513 291,542 (83,452) 3,535,236 -
Total bonds payable 71,277,557 5,836,513 5,012,585 (878,452) 71,235,119 5,435,000
Compensated absences 925,772 1,212,281 840,499 - 1,297,554 557,673
Governmental activity
long-term liabilities $ 72,203,329 $ 7,048,794 $ 5,853,084 $ (878,452) $ 72,532,673 $ 5,992,673
Business-type activities:
Bonds payable:
Revenue bonds $ 8,440,000 $ 7,295,000 $ 730,000 $ 795,000 $ 15,800,000 $ 775,000
Less deferred amounts
For issuance discounts (2,209)- 717 - (1,492) -
For issuance premiums 224,194 866,144 56,261 - 1,034,077 -
Total bonds payable 8,661,985 8,161,144 786,978 795,000 16,832,585 775,000
Compensated absences 84,913 87,510 34,257 - 138,166 76,574
Business-type activity
long-term liabilities $ 8,746,898 $ 8,248,654 $ 821,235 $ 795,000 $ 16,970,751 $ 851,574
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.
68
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
10. FUND BALANCES
At December 31, 2020, the City had various fund balances through legal restriction and City Council
authorization. Major fund balance appropriations at December 31, 2020 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 $ 6,922,014 $- $ - $ - $ - $ 6,922,014
Inventories 121,871 121,871 - - - -
Prepaids 68,123 68,123 - - - -
Community development 245,494 - - - 245,494 -
Total General Fund 7,357,502 189,994 - - 245,494 6,922,014
Economic Development
Economic Development 4,462,104 - - 4,462,104 - -
Total Economic Development Fund 4,462,104 - - 4,462,104 - -
Tax Increment District Super Valu
Property held for resale 321,719 - 321,719 - - -
Tax Increment 6,395,409 - 6,395,409 - - -
Total Tax Increment District
Super Valu 6,717,128 - 6,717,128 - - -
Permanent Improvement Revolving
Deficit Fund Balance (1,570,701) - - - - (1,570,701)
Total Permanent Improvement
Revolving (1,570,701) - - - - (1,570,701)
Capital Improvement
Capital Improvement 562,528 - 562,528 - - -
Total Capital Improvement Fund 562,528 - 562,528 - - -
Nonmajor Governmental Funds
Rehab loans 22,181 - 22,181 - - -
Debt service 9,437,879 1,231,552 8,206,327 - - -
Tax increment 397,647 - 397,647 - - -
Parking improvements 60,103 1,614 - 58,489 - -
Communications 330,620 314 146,840 183,466 - -
Art Center 74 74 - - - -
Capital Asset Improvement 1,040,544 - 1,040,544 - - -
Depot Coffee House 74 74 - - - -
Race and Equity Initiative 2,456 - 2,456 - - -
Deficit fund balance (1,849,573)- - - - (1,849,573)
Total Nonmajor Funds 9,442,005 1,233,628 9,815,995 241,955 - (1,849,573)
Total Fund Balances $ 26,970,566 $ 1,423,622 $ 17,095,651 $ 4,704,059 $ 245,494 $ 3,501,740
69
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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 to PERA.
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
General Employees Plan 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 Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for
Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent for each
additional year. 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 recipients each January. The post-retirement increase is equal to 50
percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1
percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a
full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients
receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the
effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024,
or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66
for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to
normal retirement.
70
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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. The postretirement increase will be fixed at 1
percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before
the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at
least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a
reduced prorated increase.
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 2020. The City was required to contribute 7.50% for Coordinated Plan members in calendar year 2020. The
City’s contributions to the General Employees Fund for the year ended December 31, 2020, were $421,975. The
City’s contributions were equal to the required contributions as set by state statute.
2. Police and Fire Fund Contributions
Plan members contribution rates increased from 11.3% of pay to 11.8% and employer rates increased from 16.95% to
17.70% on January 1, 2020. The City’s contributions to the Police and Fire Fund for the year ended December 31,
2020, were $607,594. 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, 2020, the City reported a liability of $4,736,411 for its proportionate share of the General Employees
Fund's net pension liability. The City’s net pension liability reflected a decrease due to the State of Minnesota’s
contribution of $16 million to the fund in 2020. 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 $146,169. The net pension liability was
measured as of June 30, 2020, 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, 2019,
through June 30, 2020, relative to the total employer contributions received from all of PERA’s participating
employers. At June 30, 2020, the City’s proportion was .0790% at the end of the measurement period and .0849% for
the beginning of the period.
71
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
Description Net Pension
Liability
The City's proportionate share of the net pension
liablitiy
$ 4,736,411
State of Minnesota's proportionate share of
the net pension liability associated with the City
146,169
Total $ 4,882,580
For the year ended December 31, 2020, the City recognized pension expense of $123,869 for its proportionate share of
the General Employee Fund’s pension expense. In addition, the City recognized an additional $12,721 as pension
expense (grant revenue) for its proportionate share of the state of Minnesota's contribution of $16 million to the
General Employees Fund (GERF) during the 2020 calendar year.
At December 31, 2020, 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
$ 43,184 $ 17,920
Changes of assumptions -175,597
Net difference between projected and actual earnings on
pension plan investments
81,825 -
Changes in proportion 7,654 92,003
City contributions subsequent to the measurement date 211,479
Total $ 344,142 $ 285,520
A total of $211,479 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, 2021. 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
2021 $ (294,172)
2022 (37,688)
2023 64,568
2024 114,435
2025 -
Thereafter -
2. Police and Fire Fund Pension Costs
At December 31, 2020, the City reported a liability of $3,939,822 for its proportionate share of the Police and Fire
Fund's net pension liability. The net pension liability was measured as of June 30, 2020, 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 contribution received by PERA during the measurement
period for employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer
72
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
contribution received from all of PERA's participating employers. The City's proportion was 0.2989% at the end of
the measurement period and 0.3098% for the beginning of the period.
The State of Minnesota contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June
30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special
funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special
funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each
year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048,
whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded,
or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded,
whichever occurs later.
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period
Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need
to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under
GASB 68 special funding situation accounting and financial reporting requirements. For the year ended
December 31, 2020, the City recognized pension expense of $539,483 for its proportionate share of the Police
and Fire Plan’s pension expense. The City recognized $28,511 as grant revenue for its proportionate share of the
State of Minnesota’s pension expense for the contribution of $4.5 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension
Plan pension allocation schedules for the $9 million in supplemental state aid. The City recognized $28,551 for
the year ended December 31, 2020 as revenue and an offsetting reduction of net pension liability for its
proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund.
Description Net Pension
Liabiity
The City's proportionate share of the net pension liability $ 3,939,822
State of Minnesota's proportionate share of
the net pension liability associated with the city
92,803
Total $ 4,032,625
At December 31, 2020, the City reported its proportionate share of the Police and Fire Plan’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
$ 174,084 $ 187,099
Changes of assumptions 1,320,316 2,457,127
Net difference between projected and actual earnings on
pension plan investments
119,671 -
Changes in proportion 337,648 155,774
City contributions subsequent to the measurement date 306,173 -
Total $ 2,257,892 $ 2,800,000
73
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
A total of $306,173 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, 2021. 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
2021 $ (203,004)
2022 (1,036,669)
2023 227,696
2024 192,079
2025 (28,383)
Thereafter -
D. Actuarial Assumptions
The total pension liability in the June 30, 2020, actuarial valuation was determined using the following actuarial
assumptions:
General Employees Fund Police and Fire Fund
Inflation 2.25 percent per year 2.50 percent per year
Active Member Payroll Growth 3.00 percent per year 3.25 percent per year
Investment Rate of Return 7.50 percent 7.50 percent
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on Pub-2010 General Employee Mortality table for the General Employees Plan and
RP-2014 tables for the Police and Fire. Cost of living benefit increases for retirees are assumed to be 1.25 percent per
year for the General Employees Plan. For the Police and Fire Plan, cost of living benefit increases for retirees are 1.0
percent per year as set by state statute.
Actuarial assumptions used in the June 30, 2020, valuation were based on the results of actuarial experience studies.
The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The four-year
experience study used for the Police and Fire Plan was completed in 2016. Inflation and investment return
assumptions for the Police and Fire Plan are based on the General Employees Retirement Plan experience study
completed in 2019, The most recent four-year experience studies for the Police and Fire Plan were completed in
2020. The recommended assumptions for those plans were adopted by the Board and will be effective with the July 1,
2021 actuarial valuations if approved by the Legislature.
The following changes in actuarial assumptions occurred in 2020:
General Employees Plan
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
The price of inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
74
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
Assumed salary increase rates were changed as recommended int he June 30, 2019 experience study. The net
effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended int he June 20, 2019 experience study. The changes
result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.
Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new
rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher
thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change
results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the
Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was
changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled
annuitant mortality table, with adjustments.
The assumed spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35%
to 45%. The assumed number of married female new retirees electing 100% Joint & Survivor option changed
from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was
adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December
31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
Police and Fire Fund
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes in plan provisions.
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 35.5%5.10%
International Stocks 17.5%5.30%
Bonds (Fixed
Income)
20.0%0.75%
Alternative Assets
(Private Markets)
25.0%5.90%
Cash 2.0%-%
Total 100%
75
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
E.Discount Rate
The discount rate used to measure the total pension liability in 2020 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.
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% $ 7,590,824 6.5% $ 7,852,632
Current Discount Rate 7.5% $ 4,736,411 7.5% $ 3,939,822
1% Higher 8.5% $ 2,381,750 8.5% $ 702,657
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.
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, 2019, membership includes 38 active participants and 13
vested terminated employees entitled to benefit but not yet receiving them
The Association issues a publicly 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.
76
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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 $7,900 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.
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:
77
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to
the City $111,191 in fire state aid and $1,000 in supplemental benefit reimbursements paid by the City to the Relief
Association for the year ended December 31, 2019. 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, 2019
was $40,000.
The City used December 31, 2019 amounts since December 31, 2020 were not available yet.
D. Pension Costs
At December 31, 2020, the City reported an asset of $497,957 for the Association’s net pension asset. The net pension
asset was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of that date.
As a result of its requirement to contribute to the Relief Association, the City recognized fire expense of $178,218 for
the year ended December 31, 2020. At December 31, 2020, 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
$-$ 150,634
Changes of assumptions 41,775 -
Net difference between projected and actual earnings on
pension plan investments
-103,220
City contributions subsequent to the measurement date 42,000 -
Total $ 83,775 $ 253,854
The City contributions to the Association subsequent to the measurement date of $42,000, reported as deferred
outflows of resources, will be recognized as a reduction of the net pension liability in the year ended December 31,
2021. 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
2021 $ (50,735)
2022 (54,271)
2023 1,563
2024 (102,110)
2025 (3,264)
Thereafter (3,262)
78
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
E.Actuarial Assumptions
The actuarial total pension liability was determined as of December 31, 2019, using the following actuarial
assumptions, applied to all periods included in the measurement:
ASSUMPTIONS FROM ACTUARIAL REPORT
Valuation Date 1/1/2019
Actuarial 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
Withdrawal 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.
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, 2019 are summarized in the following table:
Allocation at Long-Term
December 31, Expected Expected Nominal
Asset Class 2019 Portfolio Weight Rate of Return
Cash 0.85%6.00%2.25%
Fixed Income 8.71%25.00%4.25%
Equities 90.44%67.00%7.25%
Other 0.00%2.00%6.00%
Total Portfolio 100.00%100.00%6.25%
79
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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
1% Decrease Discount Rate 1% Increase
Net Pension Liability (Asset) $ (431,506) $ (497,957) $ (559,821)
Discount Rate 5.25%6.25%7.25%
(reminader of this page left blank intentionally)
80
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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.
Information about the changes in the Plan's net pension liability (asset) is as follows:
2019
Total Pension Asset
Service Cost $ 104,125
Interest 180,927
Plan Changes 216,414
Benefit Payments (168,900)
Net Change in Total Pension Liability 332,566
Total Pension Liability - Beginning 2,875,164
Total Pensions Liability - Ending (a) 3,207,730
Plan Fiduciary Net Position
Employer Contributions 152,191
Net Investment Income 578,856
Benefit Payments (168,900)
Administrative Expenses (8,780)
Net Change in Fiduciary Net Position 553,367
Fiduciary Net Position - Beginning 3,152,320
Fiduciary Net Position - Ending (b) 3,705,687
Association's Net Pension Liability/(Asset) - Ending (a) - (b) $ (497,957)
Fiduciary Net Position as a Percentage of the Total Pension Liability 115.52%
Covered Employee Payroll N/A
Net Pension Liability/(Asset) as a Percentage of Covered-Employee Payroll N/A
81
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
I. Aggregate Pension Costs
General
Employees
Plan
Police and
Fire Plan Fire Relief Total
Pension Expense $ 123,869 $ 539,483 $ 178,218 $ 841,570
Net Pension Liability 4,736,411 3,939,822 - 8,676,233
Net Pension Asset - - (497,957) (497,957)
Deferred Outflows 344,142 2,257,892 83,775 2,685,809
Deferred Inflows 285,520 2,800,000 253,854 3,339,374
12. OTHER POST EMPLOYMENT BENEFIT PLAN
The City engaged an actuary to determine the City’s liability for post-employment healthcare benefits other than
pensions as of January 1, 2020, 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 years of service
(maximum of $500 per month) towards the cost of single health and life insurance until 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 14
Total Participants 120
82
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
B. Total OPEB Liability
The City's total OPEB liability was measured as of January 1, 2020, and was determined by an actuarial valuation as
of January 1, 2020.
Actuarial assumptions
The total OPEB liability in the January 1, 2020 actuarial valuation was determined using the following actuarial
assumptions, applied to all period included in the measurement unless otherwise specified:
Inflation 2.50%
Invest rate of
return
2.90%
Healthcare cost
trend rates
6.50% as of January 1, 2020
grading to 5.00% over 6 years and
then to 4.00% over the next 48
years
Mortality rates were based on Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General,
Safety) with MP-2019 Generational Improvement Scale.
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 rates are based on the Public Employees Retirement
Association of Minnesota actuarial experience studies. The most recent six-year experience study for the General
Employees plan was completed in 2015. The most recent four-year experience study for the Police and Fire Plan was
completed in 2016.
Discount Rate
The discount rate used to measure the total OPEB liability was 2.90 percent. Since the plan is not funded by a trust,
the discount rate is equal to the 20-year Municipal Bond Rate.
Assumption changes since the prior measurement date include the following:
The discount rate was changes from 3.80 % to 2.90%.
The health care trend rates were changed to better anticipate short term and long term medical increases.
The mortality tables were updated from the RP-2014 Mortality Tables (Blue Collar for Public Safety,
White Collar for Others) with MP-2017 Generational Improvement Scale to the Pub-2010 Public Retirement Plans
Headcount-Weighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale.
The salary increase rates were changes from a flat 3.00% per year for all employees to rates which vary by
service and employee classification.
These changes increased the liability $29,358.
83
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
C. Changes in the Total OPEB Liability
Increase (Decrease)
Total OPEB Liability
Beginning Balance $ 951,774
Changes for the year:
Service Cost 58,213
Interest 35,759
Assumption Changes 29,358
Net Investment income
Differences between expected and
actual experience
97,907
Benefit payments (139,243)
Net Changes 81,994
Ending Balance $ 1,033,768
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 (1.90 percent) or 1-percentage-point higher
(3.90 percent) than the current discount rate.
1% Decrease Discount Rate 1% Increase
(1.90)% (2.90)% (3.90)%
Total OPEB Liability $ 1,097,698 $ 1,033,768 $ 973,760
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 that are 1-percentage-point lower (5.50 percent decreasing to
4.00%) or 1-percentage higher (7.50 percent decreasing to 4.0 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% over 6
years and then
to 4.00% over
the next 48)
1% Increase
(7.50%
decreasing to
4.00%)
Total OPEB
Liability
$ 955,378 $ 1,033,768 $ 1,126,771
84
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2020, the City recognized OPEB expense of $103,826. At December 31, 2020, the
City reported deferred inflows and outflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience $ 88,116 $ -
Changes of Assumptions 26,422 20,109
Contributions made after the measurement date 115,693 -
Total $ 230,231 $ 20,109
The City's contributions subsequent to the measurement date of $115,693, 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, 2021.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year ended
December 31
OPEB Expense Amount
2021 $ 9,854
2022 9,854
2023 9,854
2024 9,854
2025 9,854
Thereafter 45,159
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 $ 22,149 at December 31, 2020 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.
85
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2020
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, 2020, the City has six agreements established under Minnesota Statute 469.174 to
469.179 (The Tax Increment Act) which resulted in property taxes totaling $3,812,055 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
$618,412.
A pay as you go note to redevelop substandard property into an apartment complex and parking facility.
The abatement amounted to $919,548.
17. SUBSEQUENT EVENTS
At the March 16, 2021 meeting, the City Council approved issuance and sale of $8,425,000 General Obligation
Bonds, Series 2021A. Proceeds from the 2021A bonds will be used for the City's 2020/2021 residential road
reconstruction, utility and mill and overlay projects. The issuance was offered for sale on April 6, 2021.
86
REQUIRED SUPPLEMENTARY
INFORMATION
87
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
1. OTHER POSTEMPLOYMENT BENEFITS PLAN
Schedule of Changes in City's Total OPEB Liability and Related Ratios
Measurement Date Measurement Date Measurement Date
January 1, 2020 January 1, 2019 January 1, 2018
Total OPEB Liability
Service cost $ 58,213 $ 49,577 $ 52,550
Interest 35,759 33,554 36,421
Difference between expected and actual experience 97,907
Changes of assumptions 29,358 (25,854) -
Benefit payments (139,243) (144,260) (201,014)
Net change in total OPEB liability 81,994 (86,983)(112,043)
Total OPEB liability - beginning 951,774 1,038,757 1,150,800
Total OPEB liability - ending $ 1,033,768 $ 951,774 $ 1,038,757
Covered employee payroll $ 8,808,405 $ 8,223,045 $ 7,983,539
City's total OPEB liability as a percentage of the
covered employee payroll
11.74%11.57%13.01%
Less than ten years presented due to information not available. Will add additional years as they become
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 Liability
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%
June 30, 2019 0.0849% 4,456,194 138,494 4,594,688 5,790,736 79.35% 80.23%
June 30, 2020 0.0790% 4,736,411 146,169 4,882,580 5,640,162 86.57% 79.06%
88
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
PERA - Public Employees Police and Fire Fund
Measurement
Date
Employer's
Proportionat
e
(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 Liability
and the State's
Proportionte
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)
Plan Fiduciary
Net Position
as a Percentage
of the Total
Pension
Coverage
June 30, 2015 0.2690% $ 3,056,469 $ -$ 3,056,469 $ 2,540,691 120.30%86.60%
June 30, 2016 0.2800% 11,236,887 - 11,236,887 2,744,827 409.38% 63.90%
June 30, 2017 0.2800% 3,780,333 - 3,780,333 2,831,574 133.51% 85.43%
June 30, 2018 0.2918% 3,110,289 - 3,110,289 2,879,284 108.02% 84.84%
June 30, 2019 0.3098% 3,298,134 - 3,298,134 3,207,841 102.81% 89.26%
June 30, 2020 0.2989% 3,939,822 92,803 4,032,625 3,385,801 119.10% 87.19%
* 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%
December 31, 2019 429,188 (429,188)- 5,722,507 7.50%
December 31, 2020 421,975 (421,975)- 5,626,333 7.50%
89
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
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%
December 31, 2019 563,869 (563,869)- 3,326,661 16.95%
December 31, 2020 607,594 (607,594)- 3,432,734 17.70%
* 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)
2020 $ 42,000 $ (42,000) $ -
2019 40,000 (40,000) -
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) -
90
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
5. SCHEDULE OF CHANGES IN THE NET PENSION ASSET AND
RELATED RATIOS FOR THE HOPKINS FIRE RELIEF FUND
Information about the changes in the Plan's net pension liability (asset) is as follows:
2019 2018 2017 2016 2015 2014
Total Pension Asset
Service Cost $ 104,125 $ 101,467 $ 98,992 $ 81,771 $ 85,760 $ 77,831
Interest 180,927 164,469 154,035 171,936 157,795 139,957
Differences Between Expected and Actual Experience - (26,108)- (262,107) - -
Changes of Assumptions - 130,083 - 83,549 - -
Plan Changes 216,414 - - 212,877 - -
Benefit Payments (168,900) (49,576) (127,545) (138,785) (134,745) (13,923)
Net Change in Total Pension Liability 332,566 320,335 125,482 149,241 108,810 203,865
Total Pension Liability - Beginning 2,875,164 2,554,829 2,429,347 2,280,106 2,171,296 1,967,431
Total Pension Liability - Ending (a) 3,207,730 2,875,164 2,554,829 2,429,347 2,280,106 2,171,296
Plan Fiduciary Net Position
Employer Contributions 152,191 148,988 143,749 137,010 136,009 126,474
Net Investment Income 578,856 (305,016) 460,846 186,692 (117,135) 77,066
Benefit Payments (168,900) (49,576) (127,545) (138,785) (134,745) (13,923)
Administrative Expenses (8,780) (11,805) (12,186) (11,761) (11,783) (12,295)
Net Change in Fiduciary Net Position 553,367 (217,409) 464,864 173,156 (127,654) 177,322
Fiduciary Net Position - Beginning 3,152,320 3,369,729 2,904,865 2,731,709 2,859,363 2,682,041
Fiduciary Net Position Ending (b) 3,705,687 3,152,320 3,369,729 2,904,865 2,731,709 2,859,363
Association's Net Pension Liability/(Asset) - Ending (a)
- (b) $ (497,957) $ (277,156) $ (814,900) $ (475,518) $ (451,603) $ (688,067)
Fiduciary Net Position as percentage of the Total
Pension Liability 115.52% 109.64% 131.90% 119.57% 119.81% 131.69%
Covered Payroll N/A N/A N/A N/A N/A N/A
Net Pension Liability/(Asset) as a Percentage of
Covered Payroll N/A N/A N/A N/A N/A N/A
Note: Information prior to 2014 is unavailable.
91
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
Notes to Required Supplementary Information
PERA - General Employees Retirement Fund
2020 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the June 30, 2019
experience study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019 experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and
early retirements.
Assumed rates of termination were changed as recommended in the June 30, 2019 experience
study. The new rates are based on service and are generally lower than the previous rates for years 2-5
and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019 experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality tabel for healthy annuitants and employees was changed from the
RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled assuitant mortality table to the Pub-2010
General/Teacher disabled annuitant mortality table, with adjustments.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing 100% Joint
& Survivor option changed from 15% to 30%. The corresponding number of married new retirees
electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1,
2020 through December 31, 2023 and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions:
The employer supplemental contribution was changes prospectively, decreasing form $31.0
million to $21.0 million per year. The State's special funding contribution was changed prospectively,
requiring $16.0 million due per year through 2031.
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.
92
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
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 active member liability, 15.00 percent for vested deferred member liability and 3.00
percent for non-vested deferred member liability.
The assumed 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 assumed 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 assumed 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
Changes 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 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 2035 and 2.50
percent per year thereafter.
93
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
PERA - Public Employees Police and Fire Fund
2020 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019
Changes in Plan Provisions:
There have been no changes since prior valuation.
2019 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018
Changes in Plan Provisions:
There have been no changes since prior valuation.
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 recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.
Assumed rates of retirement were changed, resulting 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 Discount 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.
94
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
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 increase 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.
95
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2020
OPEB - Other Postemployment Benefits Plan
2020 Changes
Changes in Actuarial Assumptions:
The health care trend rates were changed to better anticipate short term and long term
medical increases.
The mortality tables were updated from the RP-2014 Mortality Tables (Blue Collar for
Public Safety, White Collar for Others) with MP-2017 Generational Improvement Scale to the
Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with
MP-2019 Generational Improvement Scale.
The salary increase rates were changed from a flat 3.00% per year for all employees to
rates which vary by service and employee classification.
The discount rate was changed from 3.80% to 2.90%.
These changes increased the liability $29,358.
2019 Changes
Changes in Actuarial Assumptions:
•The discount rate was changed from 3.30% to 3.80%.
96
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.
Arts Center Fund - This 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.
Hopkins Race & Equity Initiative - This fund was established to account for the activity of a
collaborative 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.
97
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.
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.
Pavilion Addition Fund - This fund was established to record construction and
improvement costs for the Pavilion Addition Project.
98
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications Arts Center
Assets
Cash and cash equivalents $- $32 $ 81,074 $ 282,988 $-
Taxes receivable ----5,103
Accounts receivable ---54,418 -
Rehabilitation loans receivable -22,149 ---
Due from other governments 15,403 -1,329 --
Interest receivable 2 -231 77 -
Prepaid items --1,614 314 74
Total Assets $15,405 $22,181 $84,248 $337,797 $5,177
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $- $ 1,980 $ 1,554 $ 11,950
Salaries payable 1,233 -4,158 5,623 12,682
Due to other funds 41,328 ---996,730
Due to other governments -----
Unearned revenue --18,007 -240
Total Liabilities:42,561 -24,145 7,177 1,021,602
Deferred inflows of resources:
Taxes and special assessments ----3,595
Total Deferred Inflows of Resources ----3,595
Fund balances:
Non-spendable --1,614 314 74
Restricted -22,181 -146,840 -
Committed --58,489 183,466 -
Unassigned (27,156)--- (1,020,094)
Total Fund Balances (27,156)22,181 60,103 330,620 (1,020,020)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $15,405 $22,181 $84,248 $337,797 $5,177
99
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Special Revenue Funds
Hopkins Race &
Equity Initiative
Depot
Coffee
House
Tax
Increment
District
Entertainment
District
Tax
Increment
District
Oaks of
Mainstreet 5th Ave Flats
Assets
Cash and cash equivalents $ 4,464 $- $ 279,977 $ 23,194 $-
Taxes receivable -----
Accounts receivable -----
Rehabilitation loans receivable -----
Due from other governments -----
Interest receivable --34 470 1
Prepaid items -74 ---
Total Assets $4,464 $74 $280,011 $23,664 $1
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 2,008 $ 2,123 $289 $21 $7
Salaries payable -4,935 ---
Due to other funds -83,687 109,225 -399,322
Due to other governments -9 ---
Unearned revenue -----
Total Liabilities:2,008 90,754 109,514 21 399,329
Deferred inflows of resources:
Taxes and special assessments -----
Total Deferred Inflows of Resources -----
Fund balances:
Non-spendable -74 ---
Restricted 2,456 -170,497 23,643 -
Committed -----
Unassigned -(90,754)--(399,328)
Total Fund Balances 2,456 (90,680)170,497 23,643 (399,328)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $4,464 $74 $280,011 $23,664 $1
100
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Special Revenue Funds
Tax Increment
District Moline
Tax
Increment
District
Marketplace
& Main Total
Assets
Cash and cash equivalents $ 663,281 $ 130,515 $ 1,465,525
Taxes receivable --5,103
Accounts receivable --54,418
Rehabilitation loans receivable --22,149
Due from other governments --16,732
Interest receivable --815
Prepaid items --2,076
Total Assets $663,281 $130,515 $1,566,818
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 459,774 $ 106,854 $ 586,560
Salaries payable --28,631
Due to other funds -210,000 1,840,292
Due to other governments --9
Unearned revenue --18,247
Total Liabilities:459,774 316,854 2,473,739
Deferred inflows of resources:
Taxes and special assessments --3,595
Total Deferred Inflows of Resources --3,595
Fund balances:
Non-spendable --2,076
Restricted 203,507 -569,124
Committed --241,955
Unassigned -(186,339) (1,723,671)
Total Fund Balances 203,507 (186,339)(910,516)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $663,281 $130,515 $1,566,818
101
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
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
Assets
Cash and cash equivalents $ 15,874 $ 16,905 $ 20,195 $- $ 290,869
Taxes receivable -----
Special assessments receivable 5,239 6,385 5,917 --
Interest receivable 127 97 193 10 85
Prepaid items -----
Total Assets $21,240 $23,387 $26,305 $10 $290,954
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 15,881 $15 $ 20,233 $- $ 5,264
Due to other funds -----
Total Liabilities 15,881 15 20,233 -5,264
Deferred inflows of resources:
Taxes and special assessments 5,239 5,745 5,917 --
Total Deferred Inflows of Resources 5,239 5,745 5,917 --
Fund balances:
Non-spendable -----
Restricted 120 17,627 155 10 285,690
Unassigned -----
Total Fund Balances 120 17,627 155 10 285,690
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $21,240 $23,387 $26,305 $10 $290,954
102
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Debt Service Funds
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Improvement
Bonds of 2014A
Assets
Cash and cash equivalents $ 331,112 $ 66,536 $ 428,029 $ 69,815 $ 175,784
Taxes receivable 3,779 1,660 2,549 1,479 1,629
Special assessments receivable --280,300 177,300 51,763
Interest receivable 48 30 260 158 79
Prepaid items --- 1,231,552 -
Total Assets $334,939 $68,226 $711,138 $1,480,304 $229,255
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $301 $60 $381 $- $156
Due to other funds -----
Total Liabilities 301 60 381 -156
Deferred inflows of resources:
Taxes and special assessments 2,783 1,244 281,999 178,156 52,964
Total Deferred Inflows of Resources 2,783 1,244 281,999 178,156 52,964
Fund balances:
Non-spendable --- 1,231,552 -
Restricted 331,855 66,922 428,758 70,596 176,135
Unassigned -----
Total Fund Balances 331,855 66,922 428,758 1,302,148 176,135
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $334,939 $68,226 $711,138 $1,480,304 $229,255
103
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
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
Assets
Cash and cash equivalents $ 519,910 $ 319,645 $ 92,504 $ 485,498 $ 144,933
Taxes receivable 11,350 4,324 2,001 --
Special assessments receivable -35,264 ---
Interest receivable 630 142 87 205 65
Prepaid items -----
Total Assets $531,890 $359,375 $94,592 $485,703 $144,998
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $472 $288 $84 $441 $132
Due to other funds -----
Total Liabilities 472 288 84 441 132
Deferred inflows of resources:
Taxes and special assessments 8,394 38,485 1,494 --
Total Deferred Inflows of Resources 8,394 38,485 1,494 --
Fund balances:
Non-spendable -----
Restricted 523,024 320,602 93,014 485,262 144,866
Unassigned -----
Total Fund Balances 523,024 320,602 93,014 485,262 144,866
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $531,890 $359,375 $94,592 $485,703 $144,998
104
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
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
Assets
Cash and cash equivalents $ 617,830 $ 125,129 $ 251,587 $- $ 834,167
Taxes receivable 1,672 577 3,992 -15,749
Special assessments receivable 467,789 ---514,624
Interest receivable ---6,159 18
Prepaid items -----
Total Assets $1,087,291 $125,706 $255,579 $6,159 $1,364,558
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $ 1,166 $234 $ 4,808 $- $513
Due to other funds ---8,445 -
Total Liabilities 1,166 234 4,808 8,445 513
Deferred inflows of resources:
Taxes and special assessments 468,475 427 2,914 -525,180
Total Deferred Inflows of Resources 468,475 427 2,914 -525,180
Fund balances:
Non-spendable -----
Restricted 617,650 125,045 247,857 -838,865
Unassigned ---(2,286)-
Total Fund Balances 617,650 125,045 247,857 (2,286)838,865
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,087,291 $125,706 $255,579 $6,159 $1,364,558
105
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Debt Service Funds
G O Bonds of
2017B
G O Bonds of
2018A
G O Bonds of
2019A
Refunding
Bonds of 2019B
G O Bonds of
2020A
Assets
Cash and cash equivalents $ 464,238 $ 769,805 $ 440,465 $ 38,790 $ 129,386
Taxes receivable 2,682 7,206 4,098 1,553 -
Special assessments receivable -536,486 717,711 191,883 -
Interest receivable 13 1,456 2,346 196 -
Prepaid items -----
Total Assets $466,933 $1,314,953 $1,164,620 $232,422 $129,386
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $389 $683 $362 $34 $1
Due to other funds -----
Total Liabilities 389 683 362 34 1
Deferred inflows of resources:
Taxes and special assessments 1,968 541,209 719,835 191,498 -
Total Deferred Inflows of Resources 1,968 541,209 719,835 191,498 -
Fund balances:
Non-spendable -----
Restricted 464,576 773,061 444,423 40,890 129,385
Unassigned -----
Total Fund Balances 464,576 773,061 444,423 40,890 129,385
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $466,933 $1,314,953 $1,164,620 $232,422 $129,386
106
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Debt Service Funds
Equipment
Certificates of
2020A
Refunding
Bonds of 2020B Total
Assets
Cash and cash equivalents $ 6,064 $ 1,573,874 $ 8,228,944
Taxes receivable --66,300
Special assessments receivable -- 2,990,661
Interest receivable -1 12,405
Prepaid items -- 1,231,552
Total Assets $6,064 $1,573,875 $12,529,862
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $- $ 51,898
Due to other funds --8,445
Total Liabilities --60,343
Deferred inflows of resources:
Taxes and special assessments -- 3,033,926
Total Deferred Inflows of Resources --3,033,926
Fund balances:
Non-spendable -- 1,231,552
Restricted 6,064 1,573,875 8,206,327
Unassigned --(2,286)
Total Fund Balances 6,064 1,573,875 9,435,593
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $6,064 $1,573,875 $12,529,862
107
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Capital Project Funds
Park
Improvements
Municipal State
Aid
Construction
Fund
Pavilion
Addition Total
Assets
Cash and cash equivalents $- $ 1,074,368 $- $ 1,074,368
Accounts receivable 75,626 --75,626
Interest receivable 1,391 -667 2,058
Total Assets $77,017 $1,074,368 $667 $1,152,052
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $- $ 1,233 $- $ 1,233
Due to other funds 33,660 -124,283 157,943
Due to other governments -75,948 -75,948
Total Liabilities 33,660 77,181 124,283 235,124
Deferred inflows of resources:
Total Deferred Inflows of Resources ----
Fund balances:
Restricted 43,357 997,187 - 1,040,544
Unassigned -- (123,616) (123,616)
Total Fund Balances 43,357 997,187 (123,616)916,928
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $77,017 $1,074,368 $667 $1,152,052
108
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2020
Special Revenue Debt Service Capital Projects
Total
Non-major
Governmental
Funds
Assets
Cash and cash equivalents $ 1,465,525 $ 8,228,944 $ 1,074,368 $ 10,768,837
Taxes receivable 5,103 66,300 -71,403
Special assessments receivable - 2,990,661 - 2,990,661
Accounts receivable 54,418 -75,626 130,044
Rehabilitation loans receivable 22,149 --22,149
Due from other governments 16,732 --16,732
Interest receivable 815 12,405 2,058 15,278
Prepaid items 2,076 1,231,552 - 1,233,628
Total Assets $1,566,818 $12,529,862 $1,152,052 $15,248,732
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $ 586,560 $ 51,898 $ 1,233 $ 639,691
Salaries payable 28,631 --28,631
Due to other funds 1,840,292 8,445 157,943 2,006,680
Due to other governments 9 -75,948 75,957
Unearned revenue 18,247 --18,247
Total Liabilities 2,473,739 60,343 235,124 2,769,206
Deferred inflows of resources:
Taxes and special assessments 3,595 3,033,926 - 3,037,521
Total Deferred Inflows of Resources 3,595 3,033,926 -3,037,521
Fund balances:
Non-spendable 2,076 1,231,552 - 1,233,628
Restricted 569,124 8,206,327 1,040,544 9,815,995
Committed 241,955 -- 241,955
Unassigned (1,723,671)(2,286) (123,616) (1,849,573)
Total Fund Balances (910,516)9,435,593 916,928 9,442,005
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,566,818 $12,529,862 $1,152,052 $15,248,732
109
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications Arts Center
Revenues
Property taxes $- $- $- $- $ 323,869
Franchise Fees ---220,202 -
Tax increments -----
Intergovernmental 59,248 -4,291 21,295 230,254
Charges for services --96,338 -331,363
Fines --13,394 --
Investment earnings -9 377 1,185 146
Other miscellaneous revenues ----40,342
Total Revenues 59,248 9 114,400 242,682 925,974
Expenditures
Current:
General government ---192,993 -
Public safety 62,548 -81,718 --
Highways and streets --80,815 --
Urban redevelopment and housing -3,009 ---
Culture and recreation ----709,928
Debt service:
Interest and fiscal fees -----
Capital Outlay ----159,989
Total Expenditures 62,548 3,009 162,533 192,993 869,917
Excess (deficiency) of revenues
over expenditures (3,300)(3,000)(48,133)49,689 56,057
Other Financing Sources (Uses)
Transfer in ----80,000
Transfer out ---(50,000)-
Total Other Financing Sources (Uses)---(50,000)80,000
Net change in fund balances (3,300)(3,000)(48,133)(311)136,057
Fund balance (deficit) - January 1 (23,856)25,181 108,236 330,931 (1,156,077)
Fund balance (deficit) - December 31 $(27,156)$22,181 $60,103 $330,620 $(1,020,020)
110
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Special Revenue Funds
Hopkins Race &
Equity Initiative
Depot
Coffee
House
Tax
Increment
District
Entertainment
District
Tax Increment
District Oaks of
Mainstreet 5th Ave Flats
Revenues
Property taxes $- $- $- $- $-
Franchise Fees -----
Tax increments --60,158 --
Intergovernmental -23,673 ---
Charges for services -53,941 ---
Fines -----
Investment earnings 3 2 867 827 101
Other miscellaneous revenues 7,275 106,350 ---
Total Revenues 7,278 183,966 61,025 827 101
Expenditures
Current:
General government -----
Public safety -----
Highways and streets -----
Urban redevelopment and housing --2,702 334,846 3,598
Culture and recreation 5,514 232,065 ---
Debt service:
Interest and fiscal fees --6,698 --
Capital Outlay -----
Total Expenditures 5,514 232,065 9,400 334,846 3,598
Excess (deficiency) of revenues
over expenditures 1,764 (48,099)51,625 (334,019)(3,497)
Other Financing Sources (Uses)
Transfer in -20,000 ---
Transfer out -----
Total Other Financing Sources (Uses)-20,000 ---
Net change in fund balances 1,764 (28,099)51,625 (334,019)(3,497)
Fund balance (deficit) - January 1 692 (62,581)118,872 357,662 (395,831)
Fund balance (deficit) - December 31 $2,456 $(90,680)$170,497 $23,643 $(399,328)
111
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Special Revenue Funds
Tax Increment
District Moline
Tax Increment
District
Marketplace &
Main Total
Revenues
Property taxes $- $- $ 323,869
Franchise Fees --220,202
Tax increments 1,021,720 207,297 1,289,175
Intergovernmental --338,761
Charges for services --481,642
Fines --13,394
Investment earnings -240 3,757
Other miscellaneous revenues --153,967
Total Revenues 1,021,720 207,537 2,824,767
Expenditures
Current:
General government --192,993
Public safety --144,266
Highways and streets --80,815
Urban redevelopment and housing 919,548 198,599 1,462,302
Culture and recreation --947,507
Debt service:
Interest and fiscal fees --6,698
Capital Outlay --159,989
Total Expenditures 919,548 198,599 2,994,570
Excess (deficiency) of revenues
over expenditures 102,172 8,938 (169,803)
Other Financing Sources (Uses)
Transfer in --100,000
Transfer out --(50,000)
Total Other Financing Sources (Uses)--50,000
Net change in fund balances 102,172 8,938 (119,803)
Fund balance (deficit) - January 1 101,335 (195,277) (790,713)
Fund balance (deficit) - December 31 $203,507 $(186,339)$(910,516)
112
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
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 $- $- $- $- $-
Special assessments 2,574 4,561 6,284 --
Investment earnings 41 132 192 8 522
Total Revenues 2,615 4,693 6,476 8 522
Expenditures
Current:
General government 15,900 131 20,414 4,611 6,108
Debt Service:
Principal retirement ---- 160,000
Interest and fiscal fees ----16,968
Total Expenditures 15,900 131 20,414 4,611 183,076
Excess (deficiency) of revenues
over expenditures (13,285)4,562 (13,938)(4,603)(182,554)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ---- 188,000
Transfer out --- (112,445)-
Total Other Financing Sources (Uses)---(112,445)188,000
Net change in fund balances (13,285)4,562 (13,938)(117,048)5,446
Fund balance (deficit) - January 1 13,405 13,065 14,093 117,058 280,244
Fund balance (deficit) - December 31 $120 $17,627 $155 $10 $285,690
113
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
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 $ 224,090 $ 94,335 $ 159,336 $ 90,705 $ 96,612
Special assessments --69,008 45,129 12,757
Investment earnings 720 121 1,040 812 365
Total Revenues 224,810 94,456 229,384 136,646 109,734
Expenditures
Current:
General government 1,168 604 1,423 2,909 5,868
Debt Service:
Principal retirement 180,000 85,000 215,000 120,000 120,000
Interest and fiscal fees 10,638 4,429 40,235 27,344 41,644
Total Expenditures 191,806 90,033 256,658 150,253 167,512
Excess (deficiency) of revenues
over expenditures 33,004 4,423 (27,274)(13,607)(57,778)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in --- 1,231,552 49,934
Transfer out --- (259,706)-
Total Other Financing Sources (Uses)---971,846 49,934
Net change in fund balances 33,004 4,423 (27,274)958,239 (7,844)
Fund balance (deficit) - January 1 298,851 62,499 456,032 343,909 183,979
Fund balance (deficit) - December 31 $331,855 $66,922 $428,758 $1,302,148 $176,135
114
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
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 $ 667,317 $ 248,999 $ 114,542 $- $-
Special assessments -11,335 ---
Investment earnings 870 623 169 870 157
Total Revenues 668,187 260,957 114,711 870 157
Expenditures
Current:
General government 4,595 4,188 3,693 1,568 791
Debt Service:
Principal retirement 720,000 250,000 125,000 260,000 390,000
Interest and fiscal fees 52,775 77,075 67,323 80,400 139,788
Total Expenditures 777,370 331,263 196,016 341,968 530,579
Excess (deficiency) of revenues
over expenditures (109,183)(70,306)(81,305)(341,098)(530,422)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in 145,000 68,412 63,750 340,000 529,300
Transfer out -----
Total Other Financing Sources (Uses)145,000 68,412 63,750 340,000 529,300
Net change in fund balances 35,817 (1,894)(17,555)(1,098)(1,122)
Fund balance (deficit) - January 1 487,207 322,496 110,569 486,360 145,988
Fund balance (deficit) - December 31 $523,024 $320,602 $93,014 $485,262 $144,866
115
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
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 $ 99,591 $ 33,705 $ 240,396 $- $ 969,318
Special assessments 80,631 ---99,738
Investment earnings 1,405 205 347 -978
Total Revenues 181,627 33,910 240,743 -1,070,034
Expenditures
Current:
General government 1,814 744 5,410 458 6,429
Debt Service:
Principal retirement 260,000 100,000 200,000 250,000 630,000
Interest and fiscal fees 77,775 28,665 28,138 75,825 406,675
Total Expenditures 339,589 129,409 233,548 326,283 1,043,104
Excess (deficiency) of revenues
over expenditures (157,962)(95,499)7,195 (326,283)26,930
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in 154,666 100,000 76,900 326,000 -
Transfer out -----
Total Other Financing Sources (Uses)154,666 100,000 76,900 326,000 -
Net change in fund balances (3,296)4,501 84,095 (283)26,930
Fund balance (deficit) - January 1 620,946 120,544 163,762 (2,003) 811,935
Fund balance (deficit) - December 31 $617,650 $125,045 $247,857 $(2,286)$838,865
116
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Debt Service Funds
G O Bonds of
2017B
G O Bonds of
2018A
G O Bonds of
2019A
Refunding
Bonds of 2019B
G O Bonds of
2020A
Revenues
Property taxes $ 159,672 $ 535,091 $ 403,778 $ 94,610 $-
Special assessments -87,746 116,680 46,681 -
Investment earnings 782 1,208 3,988 455 3,310
Total Revenues 160,454 624,045 524,446 141,746 3,310
Expenditures
Current:
General government 5,847 5,641 11,269 874 49,022
Debt Service:
Principal retirement 90,000 385,000 - 175,000 -
Interest and fiscal fees 60,138 205,825 579,196 37,427 -
Total Expenditures 155,985 596,466 590,465 213,301 49,022
Excess (deficiency) of revenues
over expenditures 4,469 27,579 (66,019)(71,555)(45,712)
Other Financing Sources (Uses)
Improvement bonds issued ---- 2,560,000
Premium on improvement bonds ---- 290,461
Transfer in 134,882 178,750 209,336 112,445 -
Transfer out ---- (2,675,364)
Total Other Financing Sources (Uses)134,882 178,750 209,336 112,445 175,097
Net change in fund balances 139,351 206,329 143,317 40,890 129,385
Fund balance (deficit) - January 1 325,225 566,732 301,106 --
Fund balance (deficit) - December 31 $464,576 $773,061 $444,423 $40,890 $129,385
117
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Debt Service Funds
Equipment
Certificates of
2020A
Refunding
Bonds of 2020B Total
Revenues
Property taxes $- $- $ 4,232,097
Special assessments -- 583,124
Investment earnings --19,320
Total Revenues --4,834,541
Expenditures
Current:
General government 3,644 53,391 218,514
Debt Service:
Principal retirement -- 4,715,000
Interest and fiscal fees -- 2,058,283
Total Expenditures 3,644 53,391 6,991,797
Excess (deficiency) of revenues
over expenditures (3,644)(53,391)(2,157,256)
Other Financing Sources (Uses)
Improvement bonds issued 225,000 2,495,000 5,280,000
Premium on improvement bonds 40,247 225,805 556,513
Transfer in - 138,013 4,046,940
Transfer out (255,539) (1,231,552) (4,534,606)
Total Other Financing Sources (Uses)9,708 1,627,266 5,348,847
Net change in fund balances 6,064 1,573,875 3,191,591
Fund balance (deficit) - January 1 -- 6,244,002
Fund balance (deficit) - December 31 $6,064 $1,573,875 $9,435,593
118
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Capital Projects Funds
Park
Improvements
Municipal State
Aid
Construction
Fund Total
Revenues
Franchise Fees $ 301,082 $- $ 301,082
Intergovernmental -614,923 614,923
Investment earnings -2,519 2,519
Total Revenues 301,082 617,442 918,524
Expenditures
Current:
Highways and streets 52,159 125,188 177,347
Capital outlay 36,887 -36,887
Total Expenditures 89,046 125,188 214,234
Excess (deficiency) of revenues
over expenditures 212,036 492,254 704,290
Other Financing Sources (Uses)
Transfer out (110,000)- (110,000)
Total Other Financing Sources (Uses)(110,000)-(110,000)
Net change in fund balances 102,036 492,254 594,290
Fund balance (deficit) - January 1 (58,679) 504,933 446,254
Fund balance (deficit) - December 31 $43,357 $997,187 $1,040,544
119
City of Hopkins
Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
Special Revenue Debt Service Capital Projects
Total Nonmajor
Governmental
Funds
Revenues
Property taxes $ 323,869 $ 4,232,097 $- $ 4,555,966
Franchise Fees 220,202 -301,082 521,284
Tax increments 1,289,175 -- 1,289,175
Special assessments -583,124 -583,124
Intergovernmental 338,761 -614,923 953,684
Charges for services 481,642 --481,642
Fines 13,394 --13,394
Investment earnings 3,757 19,320 2,519 25,596
Other miscellaneous revenues 153,967 --153,967
Total Revenues 2,824,767 4,834,541 918,524 8,577,832
Expenditures
Current:
General government 192,993 218,514 -411,507
Public safety 144,266 --144,266
Highways and streets 80,815 -177,347 258,162
Urban redevelopment and housing 1,462,302 -- 1,462,302
Culture and recreation 947,507 --947,507
Debt service:
Principal retirement - 4,715,000 - 4,715,000
Interest and fiscal fees 6,698 2,058,283 - 2,064,981
Capital outlay 159,989 -36,887 196,876
Total Expenditures 2,994,570 6,991,797 214,234 10,200,601
Excess (deficiency) of revenues
over expenditures (169,803)(2,157,256)704,290 (1,622,769)
Other Financing Sources (Uses)
Improvement bonds issued - 5,280,000 - 5,280,000
Premium on improvement bonds -556,513 -556,513
Transfer in 100,000 4,046,940 - 4,146,940
Transfer out (50,000) (4,534,606) (110,000) (4,694,606)
Total Other Financing Sources (Uses)50,000 5,348,847 (110,000)5,288,847
Net change in fund balances (119,803)3,191,591 594,290 3,666,078
Fund balance (deficit) - January 31 (790,713) 6,244,002 322,638 5,775,927
Fund balance (deficit) - December 31 $(910,516)$9,435,593 $916,928 $9,442,005
120
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 65,000 $ 65,000 $ 59,248 $ (5,752)
Total Revenues 65,000 65,000 59,248 (5,752)
Expenditures
Current:
Public safety 65,000 65,000 62,548 2,452
Total Expenditures 65,000 65,000 62,548 2,452
Net change in fund balance $-$-(3,300)$(3,300)
Fund balance (deficit) - January 1 (23,856)
Fund balance (deficit) - December 31 $ (27,156)
121
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $- $- $ 4,291 $ 4,291
Charges for services 133,025 133,025 96,338 (36,687)
Fines 20,000 20,000 13,394 (6,606)
Investment earnings 1,500 1,500 377 (1,123)
Total Revenues 154,525 154,525 114,400 (40,125)
Expenditures
Current:
Public safety 82,006 82,006 81,718 288
Highways and streets 68,684 68,684 80,815 (12,131)
Total Expenditures 150,690 150,690 162,533 (11,843)
Net change in fund balance $3,835 $3,835 (48,133)$(51,968)
Fund balance (deficit) - January 1 108,236
Fund balance (deficit) - December 31 $ 60,103
122
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Franchise Fees $ 235,014 $ 235,014 $ 220,202 $ (14,812)
Intergovernmental --21,295 21,295
Investment earnings 3,000 3,000 1,185 (1,815)
Total Revenues 238,014 238,014 242,682 4,668
Expenditures
Current:
General government 185,157 185,157 192,993 (7,836)
Capital Outlay 3,500 3,500 -3,500
Total Expenditures 188,657 188,657 192,993 (4,336)
Excess (deficiency) of revenues over expenditures 49,357 49,357 49,689 332
Other Financing Sources (Uses)
Transfer out (50,000)(50,000)(50,000)-
Total Other Financing Sources (Uses)(50,000)(50,000)(50,000)-
Net change in fund balance $(643)$(643)(311)$332
Fund balance (deficit) - January 1 330,931
Fund balance (deficit) - December 31 $ 330,620
123
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Arts Center
For the Year Ended December 31, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 325,225 $ 325,225 $ 323,869 $ (1,356)
Intergovernmental 87,000 87,000 230,254 143,254
Fees, licenses and permits 1,050 1,050 -(1,050)
Charges for services 426,861 426,861 331,363 (95,498)
Investment earnings --146 146
Other miscellaneous revenues 265,700 265,700 40,342 (225,358)
Total Revenues 1,105,836 1,105,836 925,974 (179,862)
Expenditures
Culture and recreation 1,019,136 1,019,136 709,928 309,208
Capital Outlay 106,700 106,700 159,989 (53,289)
Total Expenditures 1,125,836 1,125,836 869,917 255,919
Excess (deficiency) of revenues over expenditures (20,000)(20,000)56,057 76,057
Other Financing Sources (Uses)
Transfer in 80,000 80,000 80,000 -
Total Other Financing Sources (Uses)80,000 80,000 80,000 -
Net change in fund balance $60,000 $60,000 136,057 $76,057
Fund balance (deficit) - January 1 (1,156,077)
Fund balance (deficit) - December 31 $ (1,020,020)
124
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $3 $3
Other miscellaneous revenues 6,000 6,000 7,275 1,275
Total Revenues 6,000 6,000 7,278 1,278
Expenditures
Culture and recreation 6,000 6,000 5,514 486
Total Expenditures 6,000 6,000 5,514 486
Net change in fund balance $-$-1,764 $1,764
Fund balance (deficit) - January 1 692
Fund balance (deficit) - December 31 $ 2,456
125
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 20,000 $ 20,000 $ 23,673 $ 3,673
Charges for services 56,500 56,500 53,941 (2,559)
Investment earnings --2 2
Other miscellaneous revenues 221,000 221,000 106,350 (114,650)
Total Revenues 297,500 297,500 183,966 (113,534)
Expenditures
Current:
Culture and recreation 296,766 296,766 232,065 64,701
Total Expenditures 296,766 296,766 232,065 64,701
Excess (deficiency) of revenues over expenditures 734 734 (48,099)(48,833)
Other Financing Sources (Uses)
Transfer in 20,000 20,000 20,000 -
Total Other Financing Sources (Uses)20,000 20,000 20,000 -
Net change in fund balance $20,734 $20,734 (28,099)$(48,833)
Fund balance (deficit) - January 1 (62,581)
Fund balance (deficit) - December 31 $ (90,680)
126
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 30,000 $ 30,000 $ 60,158 $ 30,158
Investment earnings --867 867
Total Revenues 30,000 30,000 61,025 31,025
Expenditures
Current:
Urban redevelopment and housing 3,000 3,000 2,702 298
Debt Service:
Interest and fiscal fees 12,000 12,000 6,698 5,302
Total Expenditures 15,000 15,000 9,400 5,600
Net change in fund balance $15,000 $15,000 51,625 $36,625
Fund balance (deficit) - January 1 118,872
Fund balance (deficit) - December 31 $ 170,497
127
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $827 $827
Total Revenues --827 827
Expenditures
Current:
Urban redevelopment and housing --334,846 (334,846)
Total Expenditures --334,846 (334,846)
Net change in fund balance $-$-(334,019)$(334,019)
Fund balance (deficit) - January 1 357,662
Fund balance (deficit) - December 31 $ 23,643
128
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $101 $101
Total Revenues --101 101
Expenditures
Urban redevelopment and housing --3,598 (3,598)
Debt service:
Total Expenditures --3,598 (3,598)
Net change in fund balance $-$-(3,497)$(3,497)
Fund balance (deficit) - January 1 (395,831)
Fund balance (deficit) - December 31 $ (399,328)
129
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 97,000 $ 97,000 $ 1,021,720 $ 924,720
Total Revenues 97,000 97,000 1,021,720 924,720
Expenditures
Urban redevelopment and housing 94,500 94,500 919,548 (825,048)
Total Expenditures 94,500 94,500 919,548 (825,048)
Net change in fund balance $2,500 $2,500 102,172 $99,672
Fund balance (deficit) - January 1 101,335
Fund balance (deficit) - December 31 $ 203,507
130
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, 2020
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 184,500 $ 184,500 $ 207,297 $ 22,797
Investment earnings 500 500 240 (260)
Total Revenues 185,000 185,000 207,537 22,537
Expenditures
Current:
Urban redevelopment and housing 180,000 180,000 198,599 (18,599)
Debt service:
Total Expenditures 180,000 180,000 198,599 (18,599)
Net change in fund balance $5,000 $5,000 8,938 $3,938
Fund balance (deficit) - January 1 (195,277)
Fund balance (deficit) - December 31 $ (186,339)
131
City of Hopkins
132
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, two 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.
133
City of Hopkins
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2020
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility
Housing
Authority Total
Assets
Current assets:
Cash and investments $ 1,497,299 $ 336,580 $ 1,833,879
Accounts receivable 43,777 348 44,125
Prepaid expenses -17,305 17,305
Due from other governments 101 410,366 410,467
Total current assets 1,541,177 764,599 2,305,776
Noncurrent assets:
Capital assets, nondepreciable:
Land - 208,252 208,252
Construction in progress -12,372 12,372
Capital assets, depreciable:
Building and structures 309,227 5,793,995 6,103,222
Machinery and equipment 923,150 52,719 975,869
Less accumulated depreciation (696,033) (4,334,264) (5,030,297)
Total noncurrent assets 536,344 1,733,074 2,269,418
Total Assets 2,077,521 2,497,673 4,575,194
Deferred outflows of resources:
Pensions 16,133 -16,133
OPEB 5,065 2,810 7,875
Total Deferred Outflows of Resources 21,198 2,810 24,008
Liabilities
Current liabilities:
Accounts payable 60,249 35,788 96,037
Salaries payable 13,601 53,085 66,686
Due to other funds - 200,000 200,000
Due to other governments 20,140 -20,140
Compensated absences 27,787 20,936 48,723
Total current liabilities 121,777 309,809 431,586
Noncurrent liabilities:
Total OPEB liability due within one year 5,065 2,810 7,875
Total OPEB liability due in more than one year 10,935 17,873 28,808
Net pension liability due in more than one year 222,040 - 222,040
Total noncurrent liabilities 238,040 20,683 258,723
Total Liabilities 359,817 330,492 690,309
Deferred inflows of resources:
Pensions 13,384 -13,384
OPEB 377 181 558
Total Deferred Inflows of Resources 13,761 181 13,942
Net Position
Net investment in capital assets 536,344 1,733,075 2,269,419
Unrestricted 1,188,797 436,735 1,625,532
Total Net Position $1,725,141 $2,169,810 $3,894,951
134
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Activities
For the Year Ended December 31, 2020
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility
Housing
Authority
Nonmajor
Enterprise Funds
Total
Operating revenues
Charges for services $ 966,742 $ 232,698 $ 1,199,440
Other 3,054 11,498 14,552
Total operating revenues 969,796 244,196 1,213,992
Operating expenses
Cost of sales and services 805,251 123,301 928,552
Administration 94,032 330,820 424,852
Depreciation 64,719 188,615 253,334
Total operating expenses 964,002 642,736 1,606,738
Operating income (loss)5,794 (398,540)(392,746)
Nonoperating revenues (expenses)
Miscellaneous revenue 718 -718
Investment earnings 4,422 1,572 5,994
Intergovernmental grants 39,089 243,341 282,430
Total nonoperating revenues (expenses)44,229 244,913 289,142
Income (loss) before contributions and transfers 50,023 (153,627)(103,604)
Capital contributions
Transfers (25,000)-(25,000)
Change in net position 25,023 (153,627)(128,604)
Net position - January 1 1,700,118 2,323,437 4,023,555
Net position - December 31 $1,725,141 $2,169,810 $3,894,951
135
City of Hopkins
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2020
Nonmajor Business-type
Activities-Enterprise Funds
Nonmajor
Refuse Housing
Enterprise
Funds
Utility Authority Total
Cash Flows from Operating Activities
Receipts from customers and users $ 974,659 $ 318,986 $ 1,293,645
Internal Activity Payments from other governments (13)- (13)
Payments to suppliers (429,931) (335,961) (765,892)
Payments to employees (386,895) (100,320) (487,215)
Payments for interfund services used (94,032)- (94,032)
Net cash used by operating activities 63,788 (117,295)(53,507)
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 39,089 243,341 282,430
Transfers in (out)(25,000)- (25,000)
Interest and Dividends received 5,140 - 5,140
Net cash provided (used) by noncapital and related financing activities 19,229 243,341 262,570
Cash Flows from Capital and Related Financing Activities:
Construction of capital assets (79,284) (70,904) (150,188)
Net cash provided (used) by capital and related financing activities (79,284)(70,904)(150,188)
Net increase (decrease) in cash and cash equivalents 3,733 55,142 58,875
Cash and cash equivalents - January 1 1,471,696 256,340 1,728,036
Cash and cash equivalents - December 31 $ 1,475,429 $ 311,482 $ 1,786,911
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 $ 1,475,429 $ 311,482 $ 1,786,911
Investments 21,870 25,098 46,968
Cash and Investments per Statement of Net Position $ 1,497,299 $ 336,580 $ 1,833,879
Reconciliation of operating loss to net cash used by operating activities:
Operating income (loss) 5,787 (398,540) (392,753)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Depreciation expense 64,719 188,615 253,334
(Increase) decrease in:
Accounts receivable 4,850 74,790 79,640
Prepaid expense - (1,385) (1,385)
Pensions (deferred outflows) 291 - 291
OPEB (deferred outflows)(2,331) (1,439) (3,770)
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable 7,549 19,413 26,962
Due to other governments 16,715 - 16,715
Net pension liability 13,136 - 13,136
Total OPEB liability (19,769) 1,296 (18,473)
Pension (deferred inflows)(27,085)- (27,085)
OPEB (deferred inflows)(74)(45)(119)
Net cash used by operating activities $ 63,788 $ (117,295) $ (53,507)
136
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.
137
City of Hopkins
Combining Statement of Net Position
Internal Service Funds
December 31, 2020
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Assets
Current assets:
Cash and investments $ 558,499 $ 1,483,294 $ 244,652 $ 2,286,445
Taxes receivable 2,146 --2,146
Accrued interest receivable 1,917 385 56 2,358
Total current assets 562,562 1,483,679 244,708 2,290,949
Property and equipment:
Machinery and equipment 9,554,514 -- 9,554,514
Less accumulated depreciation (5,289,272)-- (5,289,272)
Net property and equipment 4,265,242 --4,265,242
Total Assets 4,827,804 1,483,679 244,708 6,556,191
Liabilities
Current liabilities:
Accounts payable 61,289 1,346 222 62,857
Compensated absences - 1,297,554 - 1,297,554
Total current liabilities 61,289 1,298,900 222 1,360,411
Deferred inflows of resources:
Taxes and special assessments 1,717 --1,717
Total Deferred Inflows of Resources 1,717 --1,717
Total Liabilities 63,006 1,298,900 222 1,362,128
Net Position
Net investment in capital assets 4,265,242 -- 4,265,242
Unrestricted 499,556 184,779 244,486 928,821
Total Net Position $4,764,798 $184,779 $244,486 $5,194,063
138
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
Year Ended December 31, 2020
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Operating revenues
Charges for services $ 580,768 $- $ 23,051 $ 603,819
Operating expenses
Materials, supplies and services 198,002 2,817 21,308 222,127
Administration 6,333 -397 6,730
Depreciation expense 721,773 --721,773
Total operating expenses 926,108 2,817 21,705 950,630
Operating income (loss)(345,340)(2,817)1,346 (346,811)
Nonoperating revenues (expenses)
Property taxes 109,608 --109,608
Miscellaneous revenue 736 --736
Investment earnings -3,223 779 4,002
Intergovernmental grants 259,043 --259,043
Gain (loss) on sale of assets 131,004 --131,004
Total nonoperating revenues (expenses)500,391 3,223 779 504,393
Income (loss) before contributions and transfers 155,051 406 2,125 157,582
Transfers and contributions
Transfers in 255,539 --255,539
Total transfers and contributions 255,539 --255,539
Change in net position 410,590 406 2,125 413,121
Total net position - January 1 4,354,208 184,373 242,361 4,780,942
Net position - December 31 $4,764,798 $184,779 $244,486 $5,194,063
139
City of Hopkins
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2020
Equipment Employee Insurance
Replacement Benefits Risk Totals
Cash Flows from Operating Activities
Receipts from customers and users $ 2,149 $- $ 23,051 $ 25,200
Receipts from interfund services provided 580,768 - - 580,768
Payments to suppliers (172,525)(2,817)(75,358) (250,700)
Payments for interfund services used (6,333) 373,128 (397)366,398
Net cash provided (used) by operating activities 404,059 370,311 (52,704) 721,666
Cash Flows from Noncapital Financing Activities
Taxes 109,608 - - 109,608
Intergovernmental Grants 259,043 259,043
Transfers in 255,539 - 771 256,310
Net cash provided by noncapital financing activities 624,190 - 771 624,961
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (889,281) - - (889,281)
Proceeds from sales of capital assets 131,740 - - 131,740
Net cash used by capital and related
financing activities (757,541) - - (757,541)
Cash Flows From Investing Activities 2 3,186 - 3,188
Net increase (decrease) in cash and cash equivalents 270,710 373,497 (51,933) 592,274
Cash and Cash Equivalents - January 1 287,789 165,616 296,585 749,990
Cash and Cash Equivalents - December 31 $ 558,499 $ 539,113 $ 244,652 $ 1,342,264
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 $ 558,499 $ 539,113 $ 244,652 $ 1,342,264
Investments - 944,181 - 944,181
Cash and Investments per Statement of Net Position $ 558,499 $ 1,483,294 $ 244,652 $ 2,286,445
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (345,340) $ (2,817) $ 1,346 $ (346,811)
Adjustments to reconcile operating income (loss) to -
net cash provided (used) by operating activities: -
Depreciation expense 721,773 - - 721,773
(Increase) decrease in: -
Accounts Receivable 2,149 2,149
Increase (decrease) in: -
Accounts, compensated absences and accrued interest - -
payable 25,477 373,128 (54,050) 344,555
Net Cash Provided (Used) by Operating Activities $ 404,059 $ 370,311 $ (52,704) $ 721,666
140
OTHER SUPPLEMENTARY
INFORMATION
141
CITY OF HOPKINS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended Decemeber 31, 2020
Variance with
Budgeted Amounts Actual Final Budget
Original Final Amounts Over (Under)
Revenues
Taxes
Property Taxes $ 12,567,105 $ 12,567,105 $ 12,451,755 $ (67,840)
Franchise Fees 296,200 296,200 306,497 14,668
Total Taxes 12,863,305 12,863,305 12,758,252 (53,171)
Licenses and Permits 577,015 577,015 660,802 256,849
Intergovernmental Revenues
Federal: - - 881,254 2,864
State:
PERA Aid - - 65,505 52,071
State - Police Aid 330,000 330,000 401,614 86,937
State - Fire Aid 118,000 118,000 126,483 35,240
Municipal state aid 170,000 170,000 204,975 15,631
Local Government Aid 734,946 734,946 745,141 (41)
Other Grants and Aids - - 12,582 25,011
Total Intergovernmental Revenues 1,352,946 1,352,946 2,437,554 217,713
Charges for Services
General Government 11,200 11,200 30,045 92,044
Public Safety 148,900 148,900 112,201 410
Public Works 4,150 4,150 60,813 6,817
Parks and Recreation 87,000 87,000 47,206 41,325
Total Charges for Services 251,250 251,250 250,265 140,596
Fines and Forfeitures 198,050 198,050 141,064 (4,945)
Miscellaneous Revenues
Investment Income 15,000 15,000 7,779 (1,383)
Contributions and Donations 33,000 33,000 5,029 19,911
Other 71,150 71,150 24,014 (71,591)
Total Miscellaneous Revenues 119,150 119,150 36,822 (53,063)
Total Revenues 15,361,716 15,361,716 16,284,759 503,979
Expenditures
General Government
Current:
Mayor and Council $ 97,630 $ 97,630 $ 81,766 $ 12,082
Administration 855,973 855,973 860,304 1,061
Legal 175,000 175,000 286,522 85,493
Finance 622,298 622,298 722,131 51,978
City Clerk/Elections 237,503 237,503 190,459 (49,372)
Municipal Building 403,992 403,992 362,334 (12,094)
Planning & Zoning 222,370 222,370 191,295 (68,956)
Other General Government 69,200 69,200 (3,163) (36,962)
Capital Outlay - - 168,776 (4,800)
Total General Government 2,683,966 2,683,966 2,860,424 (21,570)
142
CITY OF HOPKINS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended Decemeber 31, 2020
Variance with
Budgeted Amounts Actual Final Budget
Original Final Amounts Over (Under)
Expenditures (Continued)
Public Safety
Current:
Police $ 5,977,173 $ 5,977,173 $ 6,118,410 $ 64,865
Fire 1,474,400 1,474,400 1,526,241 195,441
Building Inspections 638,780 638,780 617,947 10,512
Other Protection - -
Capital Outlay 13,550 13,550 9,608 (48,100)
Total Public Safety 8,103,903 8,103,903 8,272,206 222,718
Health and Welfare
Current:
Community Inspections 219,621 219,621 179,037 (22,265)
Capital Outlay - - - -
Total Health and Welfare 219,621 219,621 179,037 (22,265)
Highways and Streets
Current:
Building Services 345,515 345,515 400,211 102,577
Engineering 221,002 221,002 3,430 (63,039)
Streets 1,186,768 1,186,768 1,009,283 (135,282)
Parks/Forestry 1,434,759 1,434,759 1,279,685 (76,586)
Snow Removal 251,796 251,796 211,412 31,429
Capital Outlay 3,000 3,000 38,021 (25,000)
Total Public Works 3,442,840 3,442,840 2,942,042 (165,901)
Culture and Recreation
Current:
Recreation 781,082 781,082 615,776 24,716
Capital Outlay 2,000 2,000 11,465 (2,000)
Total Parks and Recreation 783,082 783,082 627,241 22,716
Urban Redevelopment and housing
Current:
Development 108,155 108,155 110,296 1,977
Total Expenditures 15,341,567 15,341,567 14,991,246 37,675
Excess of Revenues Over (Under) 20,149 20,149 1,293,513 466,304
OTHER FINANCING SOURCES (USES)
Transfers In
From Enterprise Funds & Internal Service Funds - - - -
From Governmental Funds - - - -
Transfers Out
To Enterprise Funds & Internal Service Funds - - - -
To Governmental Funds 20,000 20,000 20,000 -
Total Other Financing Sources (Uses) 20,000 20,000 20,000 -
Net increase (decrease) in Fund Balance $ 149 $ 149 $ 1,273,513 $ 466,304
Fund balance - January 1 6,083,989
Fund balance - December 31 $ 7,357,502
143
144
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2020
SECTION III
STATISTICAL SECTION
145
City of Hopkins
146
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 148
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 156
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 160
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 164
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 166
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.
147
City of Hopkins
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2011 2012 2013 2014
Governmental activities
Net investment in capital assets $ 31,666,432 $ 31,891,229 $ 30,666,268 $ 31,272,253
Restricted 8,250,360 8,684,347 10,014,203 16,967,889
Unrestricted 6,348,703 7,854,941 9,575,287 1,902,270
Total governmental activities net position $ 46,265,495 $ 48,430,517 $ 50,255,758 $ 50,142,412
Business-type activities
Net investment in capital assets $ 17,075,284 $ 16,405,495 $ 16,621,198 $ 16,937,928
Restricted - - - -
Unrestricted 731,674 2,262,236 2,469,397 1,954,212
Total business-type activities net position $ 17,806,958 $ 18,667,731 $ 19,090,595 $ 18,892,140
Primary Government
Net investment in capital assets $ 48,741,716 $ 48,296,724 $ 47,287,466 $ 48,210,181
Restricted 8,250,360 8,684,347 10,014,203 16,967,889
Unrestricted 7,080,377 10,117,177 12,044,684 3,856,482
Total primary government net position $ 64,072,453 $ 67,098,248 $ 69,346,353 $ 69,034,552
148
Schedule 1
Fiscal Year
2015 2016 2017 2018 2019 2020
$ 32,609,356 $ 33,833,387 $ 32,064,111 $ 37,136,053 $ 37,857,254 $ 40,389,884
16,967,889 16,967,889 18,544,263 16,547,512 16,056,962 20,092,105
(9,447,813) (18,308,556) (17,563,673) (14,432,266) (14,865,750) (9,862,920)
$ 40,129,432 $ 32,492,720 $ 33,044,701 $ 39,251,299 $ 39,048,466 $ 50,619,069
$ 17,893,856 $ 21,798,183 $ 23,990,746 $ 28,627,563 $ 31,184,022 $ 27,683,345
- - - - - -
1,419,018 435,435 1,443,445 1,733,552 1,863,196 4,083,537
$ 19,312,874 $ 22,233,618 $ 25,434,191 $ 30,361,115 $ 33,047,218 $ 31,766,882
$ 50,503,212 $ 55,631,570 $ 56,054,857 $ 65,763,616 $ 69,041,276 $ 68,073,229
16,967,889 16,967,889 18,544,263 16,547,512 16,056,962 20,092,105
(8,028,795) (17,873,121) (16,120,228) (12,698,714) (13,002,554) (5,779,383)
$ 59,442,306 $ 54,726,338 $ 58,478,892 $ 69,612,414 $ 72,095,684 $ 82,385,951
149
City of Hopkins
Changes in Net Position,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2011 2012 2013 2014 2015 2016
Expenses
Governmental activities:
General Government $ 1,719,970 $ 2,056,756 $ 2,108,141 $ 2,276,155 $ 6,656,991 $ 10,341,183
Public Safety 6,213,995 6,382,270 6,357,722 6,526,230 6,665,974 8,561,759
Health and Welfare 170,018 136,528 165,649 171,187 185,248 185,301
Highways and Streets 3,332,067 3,226,807 5,845,437 5,709,009 4,542,014 5,168,939
Urban Development and Housing 2,859,900 2,362,030 2,000,868 2,247,553 1,249,457 1,398,736
Culture and Recreation 1,644,834 1,726,812 1,857,743 1,941,912 2,068,887 2,231,605
Interest on long-term debt 871,902 811,914 908,264 711,697 688,155 952,756
Total governmental activities expenses 16,812,686 16,703,117 19,243,824 19,583,743 22,056,726 28,840,279
Business-type activities:
Water 1,263,835 1,365,542 1,387,807 1,540,940 1,699,540 1,878,807
Sewer 1,800,126 1,816,058 1,995,886 2,042,106 2,061,180 2,251,291
Storm Sewer 407,057 451,659 448,170 508,686 394,707 397,660
Refuse 778,044 862,286 825,329 834,113 848,685 867,823
Pavilion/Ice Arena 416,166 430,082 426,634 460,246 462,771 483,035
Housing and Redevelopment Authority 607,090 563,863 615,043 625,667 610,318 616,653
Total business-type activities 5,272,318 5,489,490 5,698,869 6,011,758 6,077,201 6,495,269
Total primary government expenses $ 22,085,004 $ 22,192,607 $ 24,942,693 $ 25,595,501 $ 28,133,927 $ 35,335,548
Program Revenues
Governmental activities:
Charges for services:
General Government $ 42,112 $ 40,360 $ 76,477 $ 56,635 $ 82,686 $ 72,716
Public Safety 186,611 159,642 180,548 118,248 79,415 274,661
Health and Welfare 41,815 55,331 57,032 57,235 47,085 58,264
Highways and Streets 73,519 78,226 75,840 96,573 127,221 125,749
Urban Development and Housing 206,916 3,444 228 242 220,027 190,199
Culture and Recreation 623,147 684,018 756,011 740,147 810,762 770,466
Operating grants and contributions 2,325,158 3,499,465 5,273,474 2,943,889 4,970,313 4,087,923
Capital grants and contributions 1,751,464 1,350,147 1,775,717 2,728,416 501,029 1,109,278
Total governmental activities program revenues 5,250,742 5,870,633 8,195,327 6,741,385 6,838,538 6,689,256
Business-type activities:
Charges for services:
Water 1,395,306 1,534,071 1,483,133 1,497,699 1,514,086 1,526,290
Sewer 1,838,949 2,015,166 1,999,333 2,025,763 2,172,277 2,215,251
Storm Sewer 803,417 801,345 799,603 802,898 805,542 810,142
Refuse 939,421 894,534 901,670 906,387 910,672 959,258
Pavilion/Ice Arena 385,748 70,976 65,055 31,914 24,876 22,275
Housing and Redevelopment Authority 255,188 255,921 272,109 256,884 277,885 282,125
Operating grants and contributions 190,442 698,769 561,111 795,199 622,332 721,677
Capital grants and contributions 28,250 206,681 144,076 - - 702,555
Total business-type activities program revenues 5,836,721 6,477,463 6,226,090 6,316,744 6,327,670 7,239,573
Total primary government program revenues $ 11,087,463 $ 12,348,096 $ 14,421,417 $ 13,058,129 $ 13,166,208 $ 13,928,829
Net (Expense)/Revenue
Governmental activities $ (11,561,944) $ (10,832,484) $ (11,048,497) $ (12,842,358) $ (15,218,188) $ (22,151,023)
Business-type activities 564,403 987,973 527,221 304,986 250,469 744,304
Total primary government net expense $ (10,997,541) $ (9,844,511) $ (10,521,276) $ (12,537,372) $ (14,967,719) $ (21,406,719)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes $ 9,952,156 $ 10,354,188 $ 10,565,115 $ 11,207,914 $ 11,038,746 $ 11,994,436
Franchise Taxes
Tax Increments 2,239,668 2,332,863 2,002,607 2,700,110 2,920,681 2,959,459
Unrestricted grants and contributions 312,519 20,724 21,152 20,510 20,510 20,510
Unrestricted investment earnings 108,956 106,304 105,213 193,546 279,418 124,406
Gain on sale of capital assets 42,343 38,427 34,651 27,235 27,535 62,013
Transfers 145,000 145,000 145,000 493,093 (864,187) (2,089,914)
Total governmental activities 12,800,642 12,997,506 12,873,738 14,642,408 13,422,703 13,070,910
Business-type activities:
Property taxes - - - - - 63,519
Grants & Contributions not restricted - - - - - -
Unrestricted investment earnings 8,319 9,040 18,788 24,503 64,161 13,231
Gain on sale of capital assets 26,879 760 21,855 -23,477 9,776
Loss on disposal of capital assets - 8,000 - - - -
Transfers (145,000) (145,000) (145,000) (493,093) 864,187 2,089,914
Total business-type activities (109,802)(127,200)(104,357)(468,590) 951,825 2,176,440
Total primary government $ 12,690,840 $ 12,870,306 $ 12,769,381 $ 14,173,818 $ 14,374,528 $ 15,247,350
Change in Net Position
Governmental activities 1,238,698 2,165,022 1,825,241 1,800,050 (1,795,485) (9,080,113)
Business-type activities 454,601 860,773 422,864 (163,604) 1,202,294 2,920,744
Total primary government $ 1,693,299 $ 3,025,795 $ 2,248,105 $ 1,636,446 $ (593,191) $ (6,159,369)
Note: The City began separately identifying Franchise Fee Revenues in 2020.
150
Schedule 2
Fiscal Year
2017 2018 2019 2020
$ 6,751,459 $ 4,361,727 $ 5,435,138 $ 2,949,580
8,126,086 7,846,565 9,200,365 8,112,419
179,916 196,435 189,917 182,017
5,932,978 4,562,075 5,175,949 5,554,108
1,354,036 2,352,139 2,431,931 3,281,052
2,737,116 2,015,291 2,385,415 1,959,265
1,335,290 65,784 212,538 1,946,713
26,416,881 21,400,016 25,031,253 23,985,154
1,871,868 1,704,965 2,204,922 1,805,150
2,406,027 2,288,938 2,618,842 2,562,282
460,771 461,036 605,214 581,641
874,750 910,481 924,090 964,002
547,831 689,178 1,081,741 1,038,880
591,895 677,169 743,227 642,736
6,753,142 6,731,767 8,178,036 7,594,691
$ 33,170,023 $ 28,131,783 $ 33,209,289 $ 31,579,845
$ 175,390 $ 43,471 $ 207,884 $ 152,975
172,584 171,291 912,258 685,188
59,645 48,550 220,450 174,717
125,046 165,600 161,687 161,546
146,491 961,625 25,264 473,402
788,549 861,815 1,045,810 564,036
8,007,553 11,597,974 2,337,984 5,472,891
1,731,738 1,630,559 - -
11,206,996 15,480,885 4,911,337 7,684,755
1,837,434 1,931,035 1,997,826 2,208,012
2,698,307 2,780,090 2,880,695 2,926,712
809,262 806,605 806,193 800,605
956,056 954,620 984,085 969,796
37,080 62,161 484,640 316,822
294,000 402,899 285,861 244,196
697,635 579,401 901,137 360,912
- - - -
7,329,774 7,516,811 8,340,437 7,827,055
$ 18,536,770 $ 22,997,696 $ 13,251,774 $ 15,511,810
$ (15,209,885) $ (5,919,131) $ (20,119,916) $ (16,300,399)
576,632 785,044 162,401 232,364
$ (14,633,253) $ (5,134,087) $ (19,957,515) $ (16,068,035)
$ 12,895,910 $ 14,343,939 $ 16,937,577 $ 19,934,102
1,201,549 1,190,241
2,146,730 2,433,504 3,209,850 3,812,055
20,510 56,990 629,159 810,638
168,437 225,337 396,461 129,584
69,883 45,002 1,162 131,004
(3,533,235) (4,218,053) (2,458,675) 1,828,388
11,768,235 12,886,719 19,917,083 27,836,012
- 81 40,054 288,525
- - 2,648 2,595
20,760 13,153 17,925 10,174
(54) 17,210 4,400 8,710
- - - -
3,533,235 4,218,053 2,458,675 (1,828,388)
3,553,941 4,248,497 2,523,702 (1,518,384)
$ 15,322,176 $ 17,135,216 $ 22,440,785 $ 26,317,628
(3,441,650) 6,967,588 (202,833) 11,535,613
4,130,573 5,033,541 2,686,103 (1,286,020)
$ 688,923 $ 12,001,129 $ 2,483,270 $ 10,249,593
151
City of Hopkins
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2011 2012 2013 2014
General Fund
Reserved $- $- $- $ -
Unreserved - - - -
Nonspendable 174,487 196,500 231,608 213,499
Assigned 591,676 508,767 426,768 339,055
Unassigned 4,266,048 4,488,876 4,823,141 5,184,081
Total general fund $ 5,032,211 $ 5,194,143 $ 5,481,517 $ 5,736,635
All other Governmental Funds
Reserved reported in:
Special Revenue Funds $- $- $- $ -
Capital Projects Funds - - - -
Debt Service Funds - - - -
Unreserved reported in:
Special Revenue Funds - - - -
Capital Projects Funds - - - -
Nonspendable 2,674,342 1,718,341 1,495 201
Restricted 5,823,862 6,312,043 5,199,415 12,683,242
Committed 926,349 2,679,389 4,509,026 4,574,733
Assigned 2,502,336 4,785,717 3,313,086 4,162,299
Unassigned (1,916,865) (2,090,788) (2,011,214) (2,029,619)
Total all other governmental funds $ 10,010,024 $ 13,404,702 $ 11,011,808 $ 19,390,856
Total all funds $ 15,042,235 $ 18,598,845 $ 16,493,325 $ 25,127,491
152
Schedule 3
Fiscal Year
2015 2016 2017 2018 2019 2020
$- $- $- $- $- $ -
- - - - - -
227,113 87,263 135,373 192,368 211,100 189,994
340,189 340,857 245,494 245,494 245,494 245,494
5,439,798 5,437,774 5,471,420 5,179,824 5,627,395 6,922,014
$ 6,007,100 $ 5,865,894 $ 5,852,287 $ 5,617,686 $ 6,083,989 $ 7,357,502
$- $- $- $- $- $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
204 - - - 8,740 1,233,628
16,720,476 15,207,736 13,114,006 13,826,248 14,085,841 17,095,651
4,882,609 5,034,095 5,157,831 3,722,663 4,589,273 4,704,059
1,249,239 - 1,655,606 - - -
(1,960,918) (2,789,907) (1,536,968) (3,373,861) (3,123,872) (3,420,274)
$ 20,891,610 $ 17,451,924 $ 18,390,475 $ 14,175,050 $ 15,559,982 $ 19,613,064
$ 26,898,710 $ 23,317,818 $ 24,242,762 $ 19,792,736 $ 21,643,971 $ 26,970,566
153
City of Hopkins
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2011 2012 2013 2014
Revenues
Property Taxes $ 10,038,514 $ 10,403,945 $ 10,600,854 $ 11,212,334
Tax Increments 2,239,668 2,332,863 2,002,607 2,700,110
Special Assessments 1,446,922 1,307,949 1,634,903 1,202,401
Frachise Fees
Intergovernmental 1,931,333 1,549,464 3,775,172 3,272,977
Licenses and Permits 691,962 476,296 649,672 569,585
Charges for Services 908,106 787,724 884,354 835,960
Fines and Forfeits 174,303 253,530 251,170 229,807
Investment Earnings 94,409 94,235 94,024 172,012
Miscellaneous 701,683 1,881,347 1,343,592 1,148,505
Total revenues 18,226,900 19,087,353 21,236,348 21,343,691
Expenditures
Current:
General Government 1,598,885 1,598,885 1,598,885 2,126,004
Public Safety 5,895,640 6,144,206 6,089,431 6,154,320
Health and Welfare 168,202 136,169 164,237 167,088
Highways and Streets 2,337,018 2,193,209 4,709,377 4,495,659
Urban Redevelopment and Housing 2,826,172 2,826,172 2,826,172 2,192,453
Culture and Recreation 1,510,024 1,510,024 1,510,024 1,747,614
Capital outlay 1,972,143 2,470,049 4,272,737 2,144,714
Debt Service
Principal 2,065,000 1,635,000 3,265,000 1,970,000
Interest and fiscal charges 852,184 819,238 853,433 709,367
Bond Issuance Costs - - - -
Total expenditures 19,225,268 19,332,952 25,289,296 21,707,219
Excess (deficiency) of revenues
over expenditures (998,368) (245,599) (4,052,948) (363,528)
Other Financing Sources (Uses)
Sale of Property - - - -
Proceeds from Issuance of Debt - 5,985,000 1,920,000 1,895,000
Issuance of refunding debt - - - 6,345,000
Discount on Debt - (12,830) - -
Premium on Debt - 65,705 42,010 214,606
Refunded bond payment (215,000) - - -
Transfer In 1,504,822 4,788,179 2,948,556 9,351,659
Transfer Out (1,359,822) (4,989,453) (3,210,410) (8,858,566)
Total other financing sources (uses)(70,000) 5,836,601 1,700,156 8,947,699
Net change in fund balances $ (1,068,368) $ 5,591,002 $ (2,352,792) $ 8,584,171
Debt service as a percentage of
noncapital expenditures 16.90%14.60%19.60%13.70%
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.
Note: Franchise Fee Revenue have been separately identified beginning in 2019.
154
Schedule 4
Fiscal Year
2015 2016 2017 2018 2019 2020
$ 11,190,091 $ 12,181,695 $ 13,089,431 $ 14,414,205 $ 16,198,293 $ 17,615,073
2,920,681 2,959,459 2,146,730 2,433,504 3,209,850 3,812,055
1,003,444 1,404,258 1,753,923 1,121,267 1,485,089 1,469,269
1,201,549 1,190,241
2,234,195 2,698,372 3,743,694 8,466,571 2,967,143 3,532,869
489,373 686,785 811,826 702,431 813,964 660,802
848,775 1,000,847 1,008,699 933,517 999,088 1,131,867
258,924 223,131 230,804 190,395 196,519 154,458
257,543 115,925 157,870 215,005 386,362 124,848
1,474,048 1,870,874 2,463,487 1,260,706 2,134,390 256,452
20,677,074 23,141,346 25,406,464 29,737,601 29,592,247 29,947,934
2,586,582 2,886,837 3,285,079 2,872,325 3,734,294 3,158,192
6,253,424 6,718,046 7,154,007 7,600,081 7,994,658 8,406,864
176,248 181,666 177,734 190,623 185,824 179,037
3,180,023 3,797,748 4,546,602 3,283,862 3,514,461 4,029,879
1,219,526 1,337,387 1,306,327 2,294,347 2,364,752 3,242,027
1,851,741 2,016,229 2,107,616 2,024,126 2,052,975 1,563,283
8,789,979 7,325,037 11,753,941 19,310,698 12,147,357 3,792,987
8,570,000 3,075,000 3,080,000 3,890,000 6,475,000 4,715,000
646,387 855,114 1,050,401 1,496,932 1,670,990 2,064,981
- - - - - -
33,273,910 28,193,064 34,461,707 42,962,994 40,140,311 31,152,250
(12,596,836) (5,051,718) (9,055,243) (13,225,393) (10,548,064) (1,204,316)
- - - - - -
18,735,000 8,770,000 13,530,000 6,715,000 13,565,000 5,280,000
- 3,540,000 - - - -
- - - - - -
425,129 452,971 1,352,173 168,423 1,292,974 556,513
(3,927,887) (7,305,660) (3,678,549) - - -
8,513,635 8,112,133 12,157,526 9,870,518 13,748,936 6,822,304
(9,377,822) (12,098,618) (15,690,761) (8,822,290) (16,207,611) (6,127,906)
14,368,055 1,470,826 7,670,389 7,931,651 12,399,299 6,530,911
$ 1,771,219 $ (3,580,892) $ (1,384,854) $ (5,293,742) $ 1,851,235 $ 5,326,595
37.60%18.80%18.20%22.80%29.10%24.80%
155
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
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
2019 1,128,890 562,141 580,479 174,975 1,519 254,549 2,193,455 71.697
2020 1,188,831 596,056 603,388 200,628 1,585 254,549 2,335,939 70.748
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.
156
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
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
2019 55.827 15.870 71.697 27.022 41.861 2.542 7.172 78.597 150.294
2020 53.945 16.803 70.748 27.190 41.084 2.461 6.869 77.604 148.352
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.
157
Schedule 7
City of Hopkins
Principal Property Taxpayers,
Current Year and Ten Years Ago
2020 2011
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 $ 1,704,370 1 5.72 % $ - - - %
Pidemont 9320 Excelsior Blvd 814,970 2 2.74 - - -
Doran 810 Apartments 688,750 3 2.31 - - -
Greenfield Apartments LP 579,376 4 1.94 - - -
Hopkins Distribution Co LLC 507,250 5 1.70 - - -
Ramsgate Apartments, LLC 476,525 6 1.60 210,613 6 1.08
Southwest Real Estate, Inc. 335,890 7 1.13 225,396 5 1.16
Hopkins Apartments 281,288 8 0.94 - - -
The Luther Co., LTD 265,368 9 0.89 - - -
Duke Realty Ltd Partnership 262,290 10 0.88 199,490 8 1.02
Super Valu - 969,890 1 4.97
RE Capital Partners - 871,830 2 4.47
Excelsior Crossings Investments LLC - 819,450 3 4.20
Hines Global Reit 9320 Excel - 357,470 4 1.83
Hopkins Real Estate, LLC - 199,790 7 1.02
Hines Reit Mpls Ind LLC - 199,250 9 1.02
City Center Ventures, LLC - 184,450 10 0.95
- - - -
Total $ 5,916,077 19.86 % $ 4,237,629 21.72 %
Total City 2020/2011 tax capacity $ 29,796,301 19,512,121
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.
158
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 (2) Amount Levy Taxes Outstanding
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% (1)
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% 13,474 10,520,011 98.4% 170,204 1.6%
2015 9,735,801 1,514,844 11,250,645 11,009,239 97.9% 43,735 11,052,974 98.2% 197,671 1.8%
2016 10,338,764 1,907,878 12,246,642 12,120,075 99.0%(11,363) 12,108,712 98.9% 137,930 1.1%
2017 11,151,866 2,103,366 13,255,232 12,984,829 98.0% 20,227 13,005,056 98.1% 250,176 1.9%
2018 11,403,994 3,149,223 14,553,217 14,187,600 97.5% 139,865 14,327,465 98.4% 225,752 1.6%
2019 12,714,661 3,613,429 16,328,090 16,163,548 99.0%(6,613) 16,156,935 99.0% 171,155 1.1%
2020 13,647,481 4,250,154 17,897,635 17,804,266 99.5%- 17,804,266 99.5% 93,369 0.5%
Notes:
(1) 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%.
(2) 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.
159
Schedule 9
City of Hopkins
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Governmental Activities (1)Activities (1)
General HRA Tax Special Net Net Total Percentage
Fiscal Obligation Lease Revenue Increment Assessments Capital Premiums Revenue Premiums Primary of Personal Per
Year Bonds Bonds Bonds Bonds Lease (Discounts) Bonds (Discounts) Government Income Capita
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 33.68% 3,797
2019 47,657,083 - 18,637,449 4,933,026 - - 8,661,985 - 79,889,543 35.09% 4,053
2020 51,980,000 - 11,325,000 4,400,000 - 3,530,119 15,800,000 1,032,584 88,067,703 37.64% 4,467
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.
(1) The City began identifying premiums and discounts separately in 2020.
160
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
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
2019 47,522,953 4,933,026 8,661,984 18,637,449 79,755,412 6,244,002 73,511,410 3.351% 3,729
2020 54,773,025 4,468,576 16,832,583 11,993,519 88,067,703 9,435,593 78,632,110 3.780% 3,989
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 special 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.
161
Schedule 11
City of Hopkins
Direct and Overlapping Governmental Activities Debt
As of December 31, 2020
Estimated
Estimated Share of
Net Debt Percentage Overlapping
Outstanding Applicable (a)Debt
Debt repaid with property taxes:
School Districts:
Hopkins ISD 270 $ 197,475,000 16.73% $ 33,037,568
St. Louis Park ISD 283 132,725,000 0.59% 783,078
Other Debt:
Hennepin County 1,481,010,000 1.12% 16,587,312
Hennepin Suburban Park District 58,525,000 1.61% 942,253
Hennepin Regional RR Authority 94,705,000 1.12% 1,060,696
Metropolitan Council 1,688,625,662 0.57% 9,625,166
Subtotal - overlapping debt 62,036,072
City of Hopkins Direct Debt (b,c) 67,705,000 100.00% 67,705,000
Total Direct and Overlapping Debt: $ 129,741,072
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.
162
Schedule 12
City of Hopkins
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
Legal Debt Margin Calculation for Fiscal Year 2020
Market value $ 2,290,404
Debt limit (3% of market value) 68,712
Debt applicable to limit:
General Obligation Bonds 47,545
Less: Amount set aside for repayment of
general obligation debt (4,982)
Total net debt applicable to limit 42,563
Legal debt margin $ 26,149
Fiscal Year
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Debt limit $ 43,806 $ 42,189 $ 46,161 46,036 $ 48,168 $ 51,633 $ 54,888 $ 57,695 $ 64,368 $ 68,712
Total net debt applicable to limit 9,549 9,402 8,903 8,736 14,661 21,761 24,401 32,175 43,834 42,563
Legal debt margin $ 34,257 $ 32,787 $ 37,258 37,300 $ 33,507 $ 29,872 $ 30,487 $ 25,520 $ 20,534 $ 26,149
Total net debt applicable to the limit
as a percentage of debt limit 21.80% 22.29% 19.29% 18.98% 30.44% 42.15% 44.46% 55.77% 68.10% 61.94%
163
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)
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
2019 19,555 227,292 62,889 8,345 2.7
2020 19,713 233,890 64,255 8,806 6.0
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
164
Schedule 14
City of Hopkins
Principal Employers,
Current Year and Ten Years Ago
2020 2011
Percentage Percentage
of Total of Total
Taxpayer Employees Rank Employment Employees Rank Employment
UNFI (formally SuperValu) (2) 1,400 1 7.102 % 1,265 3 11.026 %
ISD 270 Hopkins (1) 1,365 2 6.924 1,400 2 12.203
Colfin Midwest NNN INV LLC (Cargil) 1,168 3 5.925 2,350 1 20.483
Thermotech 400 4 2.029 190 6 1.656
US Post Office 314 5 1.593 - - -
Oak Ridge Country Club 185 6 0.938 204 5 1.778
Augustana Chapel View Care Center 185 7 0.938 225 4 1.961
US Bank 185 8 0.938 - - -
City of Hopkins 116 9 0.588 144 8 1.255
Walser Chrysler Dodge Jeep Ram 100 10 0.507 - - -
Hopkins Honda - - - 160 7 1.395
Golden Living Center - - - 134 9 1.168
SunGard Financial Systems 105 10 0.915
Total 5,418 27.484 % 6,177 53.840 %
Source: Reference USA, written and telephone survey (March 2019), and the Minnesota Department of Employment and Economic Development.
Notes:
(1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
(2) Reflects employees in the corporate office and warehouse.
165
Schedule 15
City of Hopkins
Full-Time Equivalent City Employees by Type
Last Ten Fiscal Years
Full-time-Equivalent Employees as of December 31, 2020
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Government
Administrative Services 4.80 4.95 5.00 5.00 5.00 5.05 5.50 5.00 4.00 5.00
Finance 4.60 4.60 4.60 4.60 4.60 4.00 5.00 4.00 4.00 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 9.80 9.80 9.70 9.70 8.65 7.20 8.95 8.95 6.95
Public Safety
Police 40.00 39.50 36.45 34.50 36.50 36.78 38.45 38.28 38.45 37.28
Fire 1.20 1.20 1.25 1.25 1.25 3.25 3.25 4.10 4.10 4.10
Public Works 17.25 17.69 17.69 17.09 18.09 17.58 18.09 19.98 20.98 19.98
Recreation
Activity Center 3.30 3.20 3.20 3.20 3.20 3.25 3.20 2.80 3.00 2.00
Skate Park 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Planning & Zoning 1.35 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 0.85 0.85
Total General Government 83.95 83.79 81.69 79.04 82.04 82.91 84.39 86.81 87.18 83.01
Special Revenue Funds
Economic Development 1.60 1.60 1.15 1.60 1.60 1.25 1.60 2.00 2.00 2.00
Paratransit - - - - - - - - - -
Housing Rehabilitation 0.85 - - - - - - - - -
Parking 1.00 0.72 0.72 0.72 1.00 0.72 0.72 1.12 1.12 1.12
Section 8 - - - - - - - - - -
Communication 0.25 0.25 0.25 0.25 0.25 0.75 1.25 1.00 1.00 1.00
Depot Coffee House 1.50 1.50 2.50 2.50 2.50 5.25 5.25 5.00 4.62 2.75
Art Center 4.55 4.30 3.80 3.80 4.30 4.30 4.30 5.28 5.28 4.66
Total Special Revenue Funds 9.75 8.37 8.42 8.87 9.65 12.27 13.12 14.40 14.02 11.53
Enterprise Funds
Water 3.11 3.13 3.13 3.13 3.43 2.60 3.43 4.79 3.79 4.79
Sanitary Sewer 3.44 3.46 3.46 3.46 3.76 3.40 3.76 2.60 2.60 2.60
Refuse 3.58 3.89 3.89 3.89 3.89 4.09 4.09 3.39 3.39 3.39
Storm Sewer 0.42 0.63 0.63 0.63 0.63 0.43 0.63 0.63 0.63 0.63
Pavilion/Ice Arena 2.45 2.40 2.40 2.40 2.90 2.90 2.90 2.70 2.90 2.40
Housing and Redevelopment 2.20 2.20 2.20 2.20 2.20 2.40 2.40 2.40 2.40 2.40
Total General Government 15.20 15.71 15.71 15.71 16.81 15.82 17.21 16.51 15.71 16.21
Total 108.90 107.87 105.82 103.62 108.50 111.00 114.72 117.72 116.91 110.75
Source: City Finance Office
166
167
City of Hopkins
Operating Indicators by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2011 2012 2013 2014 2015
General Government
Elections 1 2 1 2 1
Registered voters 9,691 10,912 9,917 10,912 9,647
Number of votes cast 961 9,130 1,674 9,130 1,058
Voter participation (registered)9.90%83.70%16.90%83.70%11.00%
Public Safety
Police
Total Calls for Service 21,257 25,379 25,286 26,140 23,535
Sworn Officers 26 26 26 26 28
Traffic Stops 5,231 7,602 6,333 5,741 6,055
Parking Citations 864 958 979 820 725
Fire
Fires 40 36 38 51 18
False Alarm 95 91 101 100 103
Fire Runs 331 382 382 428 467
Medical Runs 77 141 178 195 177
Average Response Time (minutes) 4.0 4.0 4.2 4.2 4.4
Inspections
Building Permits 631 501 509 455 501
Value of Building Permits $ 19,211,258 $ 9,804,196 $ 44,183,445 $ 16,453,935 $ 12,631,596
Public Works
Miles of seal coating 0.85 5.36 5.49 5.26 1.81
Miles of crack sealing 7.26 4.13 3.75 5.85 5.26
Sidewalk repairs in square feet 5,831 5,770 5,172 4,482 6,800
Alley repairs in square yards 200 201 190 41 182
Culture and Recreation
Art Center
Bookings 4,307 307 4,440 4,747 5,013
Reserved Hours 26,406 26,406 27,442 29,440 31,759
Customer Visits for Events/Activities 219,975 219,975 213,487 215,371 216,450
Water
Gallons of water pumped (in millions) 744 781 817 812 751
Number of well house inspections 2,446 2,480 2,465 2,510 2,190
Number of hydrants flushed 151 142 138 150 120
Water Rate - Tier One $ 1.90 $ 1.96 $ 2.02 $ 2.10 $ 2.18
Water Rate - Tier Two
Water Rate - Tier Three
Sanitary Sewer
Sanitary sewage flow (in millions of gallons) 606.5 601.9 579.0 628.6 615.0
Miles of sewer lines jetted 14.6 14.7 16.2 14.6 12.0
Number of manholes checked/cleaned 1,421 1,337 1,413 1,400 274
Lift Station Maintenance checks 4,321 4,314 4,307 4,401 4,350
Sewer Rate $ 3.60 $ 3.75 $ 3.90 $ 4.10 $ 4.30
Refuse
Number of refuse accounts 2,687 2,681 2,706 2,709 2,735
Tons of refuse collected 2,265 2,470 2,136 2,393 2,368
Tons of recycled material (residential) 1,222 1,182 757 1,114 1,106
Refuse rate 15.85-21.85 15.85-21.85 16.85 - 24.30 16.85 - 24.30 16.85 - 24.30
Recycling rate $ 3.75 $ 4.00 $ 4.25 $ 4.25 $ 4.50
Pavilion/Ice Arena
Ice time rental hours 1,407 1,429 1,401 1,370 1,365
Turf use hours 758 869 865 810 818
Mezzanine rental use 1,150 1,260 1,386 2,147 2,822
Source: Various City Departments
Notes:
(1) Information not available is labeled N/A..
168
Schedule 16
Fiscal Year
2016 2017 2018 2019 2020
2 1 2 1 2
10,418 10,366 22,279 10,684 12,613
9,198 2,164 11,583 1,514 10,598
88.30%20.90%52.0%14.2%84.0%
24,549 26,724 26,063 23,996 26,139
27 27 27 30 30
6,910 6,232 6,212 4,929 3,589
640 662 542 499 423
81 43 31 39 39
130 123 110 29 36
566 415 322 235 180
171 119 143 111 129
4.2 4.2 4.2 4.1 4.1
451 485 405 506 636
$ 76,838,870 $ 19,553,988 $ 27,785,861 $ 45,193,752 $ 21,124,485
.....
1.05 1.32 1.18 N/A 1.98
1.54 2.22 2.33 8.87 1.35
6,286 10,260 25,905 40,100 4,543
180 1,235 712 45 N/A
4,981 4,761 3,975 3,859 272
31,320 32,993 24,901 19,509 1,864
211,969 220,032 227,291 220,512 41,537
787 760 720 656 682
2,450 1,095 1,095 1,095 1,095
139 139 - 337 337
$ 2.18 2.44 2.60 2.78 3.10
2.81 3.00 3.20 3.56
3.23 3.45 3.68 4.09
605 598 560 448 154
15 15 13 14 12
1,025 274 302 357 528
4,283 1,945 1,095 1,825 1,825
$ 4.30 $ 5.81 $ 6.12 $ 6.46 $ 6.86
2,692 2,687 2,698 2,687 2,698
2,095 2,215 2,162 2,132 3,027
166 966 676 676 1,822
$16.85 - 24.30 $17.85-25.30 $17.85-25.30 $17.85-25.30 $17.85-25.30
$ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00
1,284 1,385 1,213 1,714 926
749 682 425 446 221
2,847 7,315 8,892 14,289 20,404
168169
Schedule 17
City of Hopkins
Capital Asset Statistics by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 11 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 47.5 47.5 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 11 11 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 5 5 5 5 5 5 5 5 5 5
Basketball Courts 6 6 6 6 6 6 6 6 6 6
Pickleball Courts - - - - - - - 1 1 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 52.6 52.6 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 3200 3200 3200 3200 3200
Water Connections 3,168 3,168 3,168 3,168 3,168 3168 3168 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 3,086 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
170