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2021 City of Hopkins BudgetCity of Hopkins, Minnesota Annual Budget January 1 - December 31, 2021 Inspire ● Educate ● Involve ● Communicate City of Hopkins 1010 First St S Hopkins, MN 55343 952-935-8474 www.hopkinsmn.com CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2020 City Council Term Expires Mayor Jason Gadd .......................................................................................... December 31, 2021 Councilmember Brian Hunke ........................................................................ December 31, 2023 Councilmember Alan Beck ............................................................................ December 31, 2023 Councilmember Kristi Halverson ................................................................. December 31, 2021 Councilmember Rick Brausen ....................................................................... December 31, 2021 Management Team Mike Mornson ......................................................................................................... City Manager Kersten Elverum ............................................................... Director of Planning & Development Ari Lenz .................................................................................... Director of Community Services Nick Bishop ..................................................................................................... Director of Finance Kelly O’Dea ................................................................................................... Recreation Director Brent Johnson.............................................................................................................. Police Chief Dale Specken................................................................................................................... Fire Chief Steve Stadler ......................................................................................... Director of Public Works This document was developed and compiled by the Finance Department, City of Hopkins CITY OF HOPKINS TABLE OF CONTENTS Introduction/Background City Manager’s Budget Message .................................................................................. 4 Distinguished Budget Presentation Award ................................................................... 8 Organization Chart ....................................................................................................... 9 Community Profile ...................................................................................................... 10 Organization Structure ................................................................................................ 13 Organization Mission Statement, Vision & Goals ....................................................... 14 Financial Management and Policies ........................................................................... 16 Budget Calendar ......................................................................................................... 19 Budget Planning Process ........................................................................................... 21 Fund Structure ............................................................................................................ 22 Budget Overview Authorized and Approved Staffing Levels .................................................................. 26 2021 Summary Budget Information by Major and Non-Major Funds ......................... 28 2021 Budget Summary – All Funds ............................................................................ 29 2021 Revenue Summary – All Funds ......................................................................... 31 2021 Appropriation Summary – All Funds .................................................................. 35 Property Tax Information ............................................................................................ 38 Fund Balance ............................................................................................................. 43 Debt Overview ............................................................................................................ 46 Capital Improvements Overview ................................................................................. 51 General Fund Budget Projection ................................................................................ 54 Other Major Funds Budget Projections ...................................................................... 58 General Fund ................................................................................................................. 62 Special Revenue Funds ................................................................................................ 123 Enterprise Funds ........................................................................................................... 154 General Debt Service Funds ......................................................................................... 171 Glossary ........................................................................................................................ 172 City of Hopkins 1010 First Street South • Hopkins, MN 55343-7573 • Phone: 952-935-8574 • Fax: 952-935-1834 Web address: www.hopkinsmn.com City of Hopkins Mission Statement • Inspire • Educate • Involve • Communicate • January 2021 Residents, Honorable Mayor, City Council City of Hopkins Hopkins, Minnesota 55343 Dear Residents, Mayor and Council Members: It is my pleasure to present to you the City of Hopkins 2021 Budget. Hopkins’ strong financial position and proactive fiscal management practices allowed options for the City Council to maintain a service delivery at current levels while minimizing the impact on the 2021 tax levy. The final result is an adopted 2021 budget totaling $35,859,115 of which $15,750,838 is the General Fund. This budget lives within the City’s financial resources, meets basic service needs, provides for the maintenance and replacement of the City’s infrastructure, and plans for the future, keeping Hopkins’ good financial condition intact. The Municipal Budget is intended to reflect the goals, objectives, and priorities established by the City Council with input from the residents and taxpayers of Hopkins, and fairly represent the revenues and expenditures necessary to provide the services and programs desired by the community. The city governing body involves its’ residents and constituents through its mission and vision statement “Inspire • Educate • Involve • Communicate” by: conducting Hopkins Academy for residents, providing a state of the city address, publishing a city annual report, and communicating with the community as often as possible regarding many city initiatives and proposed polices. The budget adoption is a significant way in which the City Council expresses their leadership. The City Council establishes budget goals, which are accurately reflected in this budget. 2021 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: • Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. • Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. • Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. • Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. • Net Property Tax Cost for Median Value Home – A Financial Management Plan model is being used that can provide council with long range estimates of the tax changes on a median value home. The model incorporates many variable that can affect tax rates, including projected operating costs, future debt service, capital costs, and changes to the tax base. • Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for each of the City’s general fund programs. • Community Engagement - Informs residents of the difficult decisions made during the budget process and assists City Council in determining what programs and services are most valued by the community. Opportunities for engagement included: information kiosks, a budget survey and a community budget event. 4 CITY OF HOPKINS HOPKINS IN 2020 In the year 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. The city continued to provide all core services in 2020 with alternative service models. Program budgeting has helped in our analysis of city services, while we look at ways to continue to as efficient as possible. The Council and city staff also continues to investigate additional revenue sources. In 2020, the City’s tax base continued to grow due primarily due to market growth, with the largest increases coming in industrial valuations. The City's total tax capacity values increased 9.1% due mainly to these factors. In 2020 the overall taxable market value increased by 6.8% due to the same factors. The city’s levy has increased an average of 8.6% per year over the last five years. The City’s general fund expenditures have increased an average of 4.9% a year over the last five years. This increase is directly related to salary and benefit increases for employees, insurance costs and infrastructure. Diligent planning and management has helped in keeping operating expenditures down. The employee compensation has remained competitive in the market for both those with and those without labor contracts. This was affirmed by a Classification and Compensation Study conducted during 2017. The number of employees has remained stable at 114-119. ECONOMIC OUTLOOK Hopkins is a diverse community made up of a healthy mix of residential, commercial and industrial properties. United Natural Food Inc. purchased Supervalu, the largest food wholesaler in the nation, during 2018. United Natural Food Inc. is a Fortune 500 company that now has a strong presence in Hopkins. Excelsior Crossings is a large corporate campus with three buildings totaling over 900,000 square feet and room for approximately 4,000 employees. A division of another fortune 500 company, US Bank, occupies a significant portion of the campus. Digi International, a technology company, is now headquartered in one of the three Excelsior Crossing buildings. Hopkins economic outlook has remained relatively stable. The City has expanded its commercial tax base through redevelopment. Hopkins is an inner-ring suburb of Minneapolis with a good mix of 50% residential, 24% commercial and industrial and 26% apartment properties (based on estimated market values). Hopkins participates fully in the Minneapolis and Hennepin County economies. Hopkins has preserved its central downtown area where development continues because of its highly desirable location. Hopkins wealth levels are above average when compared nationwide. REDEVELOPMENT Significant redevelopment has occurred within the City of Hopkins over the past five years. This redevelopment has contributed substantially towards the increase in property values and by making Hopkins a more desirable place to live and work. Some of the more recent projects are: • Redevelopment of a small parcel in the downtown district into seven luxury townhomes. • Redevelopment of a vacant office and clinic site into 163 luxury apartments with retail space • Redevelopment of a vacant downtown building into a craft brewery and tap room. • Redevelopment of a former office building into 241 high end luxury apartments and retail space. • Redevelopment of ten duplexes into 51 affordable apartments adjacent to public transit and parks. In addition to projects other development continues in Hopkins. During 2020, construction continued on Southwest Light Rail Green Line Extension. This is the largest public works project in Minnesota’s history and will have three stations located in Hopkins. The project will make Hopkins an attractive area for redevelopment. The City has seen an increased interest in properties near the station areas for redevelopment, especially apartments. 5 CITY OF HOPKINS LONG TERM OBJECTIVES The City Council and staff have established long term objectives for the community and the working environment • Increase ratio of residential properties. • Maintain the high quality of our livable community. • Increase tax base to spread share of tax burden. BUDGET OBJECTIVES FOR 2021 • Maintain core City services at a reasonable price for residents and commercial/industrial users. • Use program budgeting as a tool for analysis of all programs and services to: ♦ look for ways to reduce dependency on the property tax, ♦ find greater efficiencies in the provision of current services and programs, ♦ compare staffing levels to workloads to assure proper allocation of resources, ♦ create greater linkages between revenues and expenses, to allow for more entrepreneurial approaches to non-essential services. • Forecast funding needs and tax implications to assure strong long-term financial stability. • Continue policy of avoiding the use of fund balances for operating expenses. • Recognize and award employees that assist the City in saving money. • Evaluate and investigate other sources of revenue. BUDGET CONSIDERATIONS These are areas to consider that may affect the budget during the next few years. State Tax Reform:  Property Classification Changes – In the past there has been a tendency to shift some of the tax burden back to residential taxpayers from commercial/industrial taxpayers.  Tax Increment Finance – Any changes in property classifications impact property taxes generated by TIF districts. Currently the tax generated in the various districts is projected to be sufficient to cover any debt or liabilities created in the districts.  Property Tax Freeze and/or Levy Limits – Levy limits have been on and off again since 2008. This uncertainly poses budget challenges as cities are uncertain if they will again be re-instated. For the 2021 budget year there were no levy limits which give cities more budget flexibility in meeting the needs of their residents while maintaining essential city services.  State Aids – The City of Hopkins no longer receives significant state aids as a revenue source however the legislature did increase the amount of Local Government Aid (LGA) allocated to Cities for 2020. The city received approximately $735,000 of LGA in 2020 and will receive approximately $850,000 in 2020. Real Estate Values – Overall real estate values in this community increased by approximately 6.8% in 2020. This resulted in an increase in the City’s tax capacity of 9.1% due to varying tax capacity rates between residential, apartment, commercial and industrial properties. Overall, general fund budgeted expenditures will increase by 2.53% in 2021 due in large part to salaries and benefits increases, which were offset by eliminated a position and other reductions. At the time of this budget, we project an average 4.00% change for 2021-2024. Future programs and services provided by the City of Hopkins may change in relation to available revenue sources. The City Council and staff along with their financial advisor will be updating the City’s long-range financial management plan that assists in current and future budgeting. The plan was adopted in 2014 and was implemented for the 2015 budget and is used for budget planning each year. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and sets forth a plan to stabilize all funds. The plan will undergo a full update in 2021 to begin the 2022 budget process. 6 CITY OF HOPKINS Fund Balances for governmental fund types will continue to be strong for the next 3 to 4 years, absent any significant changes in the policy of avoiding the use of fund balance reserves for current expenditures. GAUGING THE CITY The City uses the following performance measures: • Tax levy history in relation to the consumer price index. • Tax Impact on Median Value Home • Comparisons of comparable communities • Goal achievement 2021 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, while keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount while at the same time allowing the City enough funds to continue with the level and quality of service it currently has. This has been particularly challenging the last few years as the City continues to make infrastructure improvements. The city’s tax capacity rate has held fairly steady over the past five years ranging from 62.98% to 70.17%. The proposed 2021 city tax rate of 67.04% is a 2.26% decrease from 2020. The adopted General Fund budget has a 2.5% expenditure increase for a total General Fund Budget of $15,750,838. The total tax levy increase for 2021 is 1.48%. The levy includes funds designated for general fund operations, equipment replacements, Arts Center, Pavilion and debt service payments. The monthly city tax cost for a median valued home of $291,000 is about $154 or approximately $1,848 for the year not including credits for state programs. The city’s goals and objectives were once again reviewed and updated by city staff, commissions, residents and the City Council. They are integral part in meeting the needs of the residents. The goals and strategic plans set at the beginning of 2020 are included in the budget document on pages 14-15. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 7 CITY OF HOPKINS The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Hopkins, Minnesota for its annual budget for the fiscal year beginning January 1, 2020. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 8 CITY OF HOPKINS CITY FACILITIESCity Hall1010 First St S, Hopkins, MN 55343952-935-8474Depot Coffee House 9451 Excelsior Blvd, Hopkins, MN 55343952-938-2204Fire Department101 17th Ave S, Hopkins, MN 55343952-938-8885Hopkins Activity Center 33 14th Ave N, Hopkins, MN 55343952-939-1333Hopkins Center for the Arts 1111 Mainstreet, Hopkins, MN 55343952-979-1100Pavilion Ice Arena11000 Excelsior Blvd, Hopkins, MN 55343952-548-6390Police Department 1010 First St S, Hopkins, MN 55343952-548-6440Public Works11100 Excelsior Blvd, Hopkins, MN 55343952-939-13829 CITY OF HOPKINS COMMUNITY PROFILE The first settlers of Hopkins arrived in 1852; however, the roots of the town begin in 1887 with the building of the Minneapolis Threshing Machine Company, later called Minneapolis Moline. Minneapolis Moline once employed most of the Hopkins residents. The West Minneapolis Land Company was also founded in 1887 and was formed to build housing for the Minneapolis Moline factory workers. In 1893, the Hennepin County Board of Commissioners received a petition signed by 41 residents, asking that the village be formed. Following an election, the community was then incorporated as the village of West Minneapolis. The original village was comprised of three square miles, and it has been enlarged by annexation to its present size of about four square miles. The population at the time of its incorporation was 1,105; today, there are 19,713 people living in Hopkins. In 1928, the name of the village was changed to Hopkins - for Harley H. Hopkins who was among its first homesteaders and was the community's first postmaster. The first mayor was Harley Hopkins' son, Chester L. Hopkins. On January 1, 1948, the village became a city upon adoption of a City Charter with a Council/Manager form of government. The City Council consists of four council members and the mayor. Council members serve four-year terms and are elected at large. The mayor is elected at large for a two-year term. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City manager. Hopkins has always had a core business district, and in the center of that early business district was Hopkins City Hall at 8th Ave N and Mainstreet. Completed in 1912, it housed the city's police and jail in the rear portions, and city offices, library and meeting room upstairs. The fire station was on the main level, and the firefighters used horse drawn rigs. The building was remodeled in 1940 to accommodate more fire trucks. That fire station was torn down in 1965 after a new City Hall, Police Station and Fire Station were built at 1010 1st St S. In 2004, a new Fire Station was built on 17th Ave. The Police Department was expanded and remodeled in 2005. City Hall was renovated 2019. In the summer of 1982, the city and its Public Works Department accomplished the challenge of building a city garage on a small area, using as many of the existing structures as possible, doing it within a $475,000 budget, and doing it without disrupting city services. The Public Works facility was expanded and remodeled in 2004. Adjacent to the Public Works facilities is the Hopkins Pavilion, which was built with money from a 1989 park bond referendum. The facility opened in December 1991. It is now one of the premier facilities of its kind in the Twin Cities area, and is used for soccer, lacrosse, in-line roller hockey, skating and ice hockey. The facility was expanded and remodeled in 2018. The Hopkins Activity Center, a multipurpose community facility, opened in January 1981 at the site of the former South Junior High School. A variety of programs for people of all ages are offered at the Activity Center. It was renovated in 1990, and the facility includes a gymnasium, meeting rooms and kitchen. The Hopkins Historical Society, which was started more than 30 years ago, also is located in the Activity Center. The Hopkins Center for the Arts, 1111 Mainstreet, opened in November 1997. The Arts Center stands as a focal point for arts, culture and entertainment in the Hopkins community, the Twin Cities metro area and the region. It is a community-gathering place where young and old can enjoy high quality, multi-disciplinary cultural arts programs and community activities. The Arts Center includes a theater, a visual arts gallery, multipurpose spaces for rehearsals, community activities and small performances, a visual arts classroom, a dance studio, and kitchen facilities for serving catered food. It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival, now in its 87th year. The first festival was organized in 1934 by a group of community business people who were concerned that the Hopkins economy and community needed a boost. 10 CITY OF HOPKINS Minnesota Hopkins is a suburban city in Hennepin County, Minnesota located just 13 minutes west of the Twin Cities of Minneapolis and St. Paul. The City is four square miles in size surrounded by larger suburban communities. Hopkins is about 98% developed with little remaining vacant land. U.S. Route 169 and Minnesota Highway 7 are two of the main arterial routes in the City. Hopkins is a dynamic community of almost 20,000 residents. Founded rich in tradition and growth, Hopkins offers the advantages and conveniences of a large City but yet the security of a small town. The residents and the business community have an enormous sense of pride and support for their City. Travel any street and you will see and feel the reflections of pride and vitality. Hopkins has enriched its spirit of community by remaining a place where people are treated with respect; where the community participates in building culture, character and common bonds; where business growth is supported while a vibrant City Center is maintained; where people feel safe, support outstanding schools and celebrate cultural heritages; and where people enjoy quality parks, housing and public services. Through education, inspiration, involvement and communication, the City Council, City Staff, members of the Boards and Commissions, the business district and the neighborhood associations are committed to enhancing the quality of life in Hopkins. Burnes Park Splash Pad 1920 3,055 1930 3,834 1940 4,100 1950 7,595 1960 11,380 1970 (census)13,395 1980 (census)15,336 1990 (census)16,534 2000 (census)17,145 2010 (census)17,591 2019 (estimate) 19,555 Population: 11 CITY OF HOPKINS CITY STATISTICS: Founded 1852 School Enrollment 8,434 Dated of Incorporation November 27, 1893 Education Date of Adoption of City Charter December 20, 1947 Elementary Schools 6 Form of Government Council - Manager Middle Schools 2 Fiscal Year Begins January 1 High School 1 Area of City 4.1 Square Miles Private Schools 8 2,616 acres Charter Schools 2 Housing Single Family 2,761 Elections: Multiple Family 5,336 Registered Voters - last general election 12,613 Duplexes 500 Number of votes cast last general election 10,598 Townhouses 869 Percentage of registered voters voting 84% Population by Age City Bond Rating 0 to 19 4,007 Stand & Poor's AA+ 20 to 64 12,942 Over 65 2,606 Miles of Streets and Alleys: Income by Household Trunk Highways 3.57 Less than $25,000 9.2% County 5.32 $25,000 - $50,000 10.9% City Streets 47.5 $50,000 - $75,000 9.1% Alleys 9.52 $75,000 - $100,000 4.5% $100,000 - $150,000 4.6%Miles of Sewers: $150,000 or more 4.1% Storm Sewers 21.4 Sanitary Sewers 45.46 Median Household Income $56,390 Miles of Watermains 52.6 Per Capita Personal Income $38,560 Civil Defense Warning Sirens 3 Unemployment Rate 3.9% Fire Protection: Population Composition Number of Stations 1 White 58.90% Number of FT Employees 4 African American 19.12% Volunteer Firefighters 32 Asian 7.95% Hispanic or Latino 10.74%Police Protection: Two or More Races 2.64% Number of Stations 1 Native American 0.57% Number of Employees 38 Other Races 0.08% Parks City Parks 16 Playgrounds 11 Total Property Values $2.309 billion Skating Rinks 7 12 CITY OF HOPKINS ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council-manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four-year term and the mayor serves a two-year term. The city manager is the chief administrative officer of the City. The city manager is selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City’s affairs and therefore, supervises all departments and divisions of the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. The organizational hierarchy is shown on page 9. The hierarchy does not always match financial reporting requirements (as shown on page 25). Pages 62-171 provide information on the Functions are several programs. A description of each program, its objectives and budgets are presented in this document. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer residents and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. MISSION, VISION AND GOALS Long-range goals for the City are: o Continually enhance partnerships with residents. o Inspire resident leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is:  Responsive to the needs of the community.  Innovative.  Accessible. Short-term goals are reviewed annually by City Council and staff. The discussion begins with the global environment and ends with prioritizing goals for the near future. Below are the mission, vision and short- term goals for the City along with the strategies and action steps needed to implement them. The budget is developed using the three main goals along with the strategies as guidance. Departments then use the action steps in setting individual departmental goals and budgets so that resources are available to achieve the action steps identified. 13 MISSION VISION GOALS V) LU -lJ LU � I- V) 2020 Inspire. Educate. Involve. Communicate. Creating a spirit of community where ... All people feel safe and respected, and diversity is celebrated. Preserve the Home Business growth is supported and a vibrant downtown is maintained. Urban Design: People enjoy exceptional government services, neighborhoods and outstanding schools. Take It Town Feel of Hopkins Do It Right To Them Support a vibrant business Improve walking and biking Involve diverse community infrastructure in the city populations Promote and enhance city Practice environmental Engage the rental events responsibility community of Provide accessible, friendly Support a range of housing Hopkins and efficient city services options Inspire community and citizen Embrace and strengthen Support transit-oriented engagement partnerships development GOAL SITTING 2020 14 GOALS: ACTION STEPS Preserve the Home Town Feel of Hopkins »Strengthen image of Hopkins as an arts community »Promote shopping local »Promote business assistance programs »Work through "Think Hopkins" on business recruitment efforts »Promote city events large and small (Raspberry Festival, Mainstreet Days, Old Fashioned Holiday, Summerfest, etc.) and have a city booth at events when possible »Improve service delivery through e-commerce »Promote interactive park, trails, and facilities directory on website »Support History Center transition to Mainstreet »Grow partnerships with: »Joint Recreation with Minnetonka »Hennepin County »Hopkins School District »Watershed Districts »Met Council »Three Rivers Park District »Surrounding cities »Faith and community-based organizations »Business community GOAL SETTING 2020 Urban Design: Do It Right »Implement the sidewalk and trail master plan and partner with other agencies to improve and update paths, trails and crossings in the community, supporting "Complete Streets" initiatives »Explore local transportation opportunities »Develop a schedule for rezoning properties to conform to Comprehensive Plan guidance »Partner with Hennepin County and SWLRT cities to maximize benefit and minimize disruption during construction »Work with Minnetonka and Hennepin County to implement the vision for the Shady Oak LRT Station »Work with all stakeholders to implement and build on recommendations of the Blake Road Corridor plans »Continue to explore and promote sustainability initiatives in our community »Explore ways to strengthen the edges of downtown »Continue to explore ways to enhance the Mainstreet experience Take It To Them »Promote cultural celebrations »Explore methods to involve Multicultural Advisory Committee in community building »Continue to seek out diversity on boards and commissions »Intentionally engage rental communities »Encourage volunteerism and expand volunteer opportunities »Conduct community meetings at alternative locations »Educate the community in the area of emergency preparedness »Identify opportunities to partner with youth, schools, businesses and faith-based organizations »Promote opportunities to raise awareness and understanding of race, equity and diversity »Creatively engage and market the community using technology and unique platforms 15 CITY OF HOPKINS FINANCIAL MANAGEMENT AND POLICIES The City of Hopkins Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices, policies and year- end reporting. BASIS OF ACCOUNTING The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for City funds. The exception is the proprietary funds, which are on full accrual. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City’s financial statements as included in the City’s Comprehensive Annual Financial Report at the fund statement level. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The City implemented Governmental Accounting Standards Board (GASB) Statement No. 34 for the year ending December 31, 2003. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City operates on a calendar fiscal year and reports its year-end financial position in a Comprehensive Annual Financial Report (CAFR), prepared by the City’s Finance staff. The CAFR is available to the public through the City’s website or by request. The 2019 CAFR will be audited by the independent auditing firm of CliftonLarsonAllen, LLP to insure accuracy and compliance with federal and state laws and regulations. State law provides that the City may arrange for an examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor or by Certified Public Accountants. It has been a long-standing policy of the City to provide for a complete annual audit of the City records by independent Certified Public Accountants. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Hopkins for its CAFR for the fiscal year ended December 31, 2018. The City believes CAFR for the fiscal year ended December 31, 2019 also meets the program criteria and will receive the award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY The City annually develops a 5-year plan for capital improvements and updates it annually. The five-year budget capital improvement will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete CIP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each capital project proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed project. The City will make all capital improvements in accordance with the adopted capital improvement program or as amended by the City Council. Capital purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its assets at a level adequate to protect the City’s and its resident’s capital investment and to minimize future maintenance and replacement costs. 16 CITY OF HOPKINS EQUIPMENT REPLACEMENT PLAN (ERP) POLICY The City annually develops a 5-year plan for equipment replacement and updates it annually. The five- year budget equipment replacement plan will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete ERP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each equipment proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed equipment purchase. New pieces of equipment not previously in the equipment replacement plan must first be financed through the departmental budget and will be placed in the equipment replacement plan the year following the purchase. The City will make all equipment purchases in accordance with the adopted equipment replacement plan or as amended by the City Council. Equipment purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its equipment assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. BUDGETARY AND FINANCIAL CONTROL POLICIES • The council shall have full authority over the financial affairs of the City. • City manager shall control and direct the administration of the City's affairs. • The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. • The manager will prepare and submit to the council at the end of the fiscal year a complete report on the finances and administrative activities of the City for the preceding year; and keep the council advised of the financial condition and future needs of the City. • The annual budget shall provide a complete financial plan for the budget year by fund. • The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. • The city clerk shall be the chief purchasing agent of the City. • The City will maintain an investment policy that invests available funds to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines. Any money in any fund belonging to the City, or any branch thereof, may be invested by the city manager according to policies adopted by the City Council. • The finance director shall be the chief accounting officer of the City and shall submit to the council a statement each quarter containing information relative to the finances of the City as the council may require. Each year the finance director shall submit a report to the council, no later than June 30, covering the entire financial operations of the City for the past year. This report shall follow the style and form, as far as practicable, prescribed for annual City financial reports and copies will be made available to interested parties. BUDGET CONTROLS Budgets are complete financial plans for the future by fund, showing all proposed expenditures and estimates of all anticipated revenues. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. The budget is a public record open to public inspection. The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by resolution. BALANCED BUDGET – It has been City policy to annually approve a balanced General Fund budget. A balanced budget is a budget in which expenditures are equal to income. Other City funds may or may not have a balanced budget depending on when funding is received for specific expenditure needs. For 17 CITY OF HOPKINS example a grant may be budgeted for expenditures that may overlap years. Thus all revenues would be in one year and the expenditures would be in multiple years. BUDGET BASIS – Governmental budgets are prepared on the modified accrual basis and enterprise budgeted on an accrual basis. Budgets are estimates and may be amended under the following guidelines. PREPARATION OF THE ANNUAL BUDGET – The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET – The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET – Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET – Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re-appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc. For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. 18 CITY OF HOPKINS The City follows the procedures below in establishing the budget. 1. The city manager and finance director submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. a. The operating budget includes proposed expenditures and the estimated revenues for the general fund, specified special revenue funds requested by City Council, enterprise funds, internal service funds and debt service funds. b. Capital project funds for the City are not budgeted annually but are included in the Capital Improvement Plan approved by the City Council. Capital projects are approved by the City Council on a per project basis. 2. Public hearings are conducted to obtain taxpayer comments. 3. The general fund budget is enacted through passage of a resolution. 2021 BUDGET CALENDAR INTERNAL CONTROLS In developing and altering the City’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use of disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. the concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and the benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. CASH MANAGEMENT The investment portfolio of the City is designed to attain an average rate of return regularly exceeding the average return on three month US Treasury Bills, while seeking to augment returns above this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent investment principles. Portfolio diversification is considered so that investments are not concentrated in one institution, in one type of investment, or purchased from one dealer. Pursuant to this policy, cash temporarily idle during the year was invested in those investments authorized by law RISK MANAGEMENT The City has an informal risk management policy, the purpose of which is to maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. The City has insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) to ensure January 10 Meet with Council to set parameters and goals for 2021 budget process January 21 Public presentation about financial management plan and City's budget process March - April Conduct budget survey for residents, business owners and other stakeholders April 1 Distribute budget worksheets to departments May 29 Departmental budgets to be completed and returned to finance June-July Finance reviews and compiles budget summary July 21 First draft of the general fund budget and tax levy presented to City Council August 17 Public presentation about first draft of general fund budget and tax levy August - September City Council reviews budget and tax levy September 15 City Council adopts preliminary levy and budget September 16 Proposed 2021 levy certified to Hennepin County September - November City Council reviews budget and tax levy November 30 Public Hearing on Budget, Approval of final budget and tax levy December 1 Final 2021 levy certification to Hennepin County 19 CITY OF HOPKINS City property, contractors and miscellaneous equipment, crime, employee performance bonds, autos and general liability. General liability coverage amounts to $1,000,000 per occurrence (and aggregate), with a $20,000 per occurrence, $40,000 aggregate deductible. DEBT • The City will confine long-term borrowing to capital improvements, equipment or projects that have a life of more than 10 years and cannot be financed from current revenues. • The City may issue debt for its Permanent Revolving fund, which pays for any improvement in which part of the cost of the improvement is to be assessed against the benefiting properties. • The City may also issue revenue bonds that are paid back directly from revenue sources other than debt levies. • The City may submit to voters the proposition of issuing debt for any public purpose not prohibited by law, and issue the debt upon a favorable majority vote. • Whenever possible, the City will use revenue (including G.O. backed revenue) or other self-supporting type bonds instead of general obligation bonds. • The City will maintain frequent and regular communication with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The City will comply with Securities Exchange Commission (SEC) reporting. • The City will keep the total maturity length of general obligation bonds below 25 years. In all cases the maturity shall be shorter than the life of the related assets. • Net general obligation debt (as defined above) will not exceed 3% of the estimated full market value of taxable property in the City as required by Minnesota Statutes Section 475.53. • The City may issue emergency bonds to pay for extraordinary expenditures or to cover a shortfall in revenues for budgeted expenditures. Emergency bonds must mature within ten years of issuance. One tenth of the amount is to be levied the first year following issuance and one tenth every year thereafter for ten years. FUND BALANCE • The City believes that sound financial management principles require that sufficient funds be retained by the City to provide a stable financial base at all times. To retain this stable financial base, the City needs to maintain a General Fund Balance sufficient to fund all cash flows of the City, to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature, and to provide funds for all existing encumbrances. • The following individual items shall constitute the City General Fund Balance: o Restricted Fund Balance – The restricted fund balance category includes the portion of the spendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes o Committed Fund Balance – The committed fund balance classification includes the portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to yearend but the amount can be determined at a later date. o Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. The authority to “assign” fund balance is delegated to the City Finance Director o Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. These are the current resources available for which there are no government self-imposed limitations or set spending plan. Although there is generally no set spending plan for the unassigned portion, there is a need to maintain a certain funding level. Unassigned fund balance is commonly used for emergency expenditures not previously considered. In addition, the resources classified as unassigned can be used to cover expenditures for revenues not yet received. 20 CITY OF HOPKINS • The Council recognizes that any such funds should be appropriated for non-recurring expenditures as they represent prior year surpluses that may or may not materialize in subsequent fiscal years • POLICY - At the end of each fiscal year, the City will strive to maintain Spendable – Unassigned portions of the fund balance for Cash Flow equivalent to a minimum of five (5) months or 42% of the prior fiscal year General Fund operating expenditures. In addition to cash flow needs this accommodates emergency contingency concerns. • MONITORING AND REPORTING - The City Manager and Finance Director shall annually prepare the status of fund balances in relation to this policy and present to the City Council in conjunction with the development of the annual budget. • When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. • When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1.) committed 2.) assigned and 3.) unassigned. • A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. BUDGET PLANNING PROCESS The City has developed a number of elements that when been brought together help to provide the best information for the Council to make their budget decisions. These elements include the following: • Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Department Directors then use these goals in developing departmental goals and setting departmental budgets. • Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. For programs whose goal is to be supported totally by revenues it allows departmental managers to review the fee structure on an annual basis to ensure that goal is met. It also allows the public to determine what portion of a specific department is supported by taxes. • Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Monitoring tax capacity along with budget needs provides advance notice to management when taxes may rise faster than advisable and allows staff to take appropriate action in revising budget goals and projections. • Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting in keeping all funds in a positive cash position. • Financial Management Plan – In 2014 the City adopted a long-range Financial Management Plan for the years 2015-2024 that addresses financing challenges for several funds, sets forth financing for all items identified in the Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP) (described below), and provides for adequate funding for operational needs in the general, special revenue funds and enterprise funds. Tax base growth is built into the plan so the taxes are indexed each year based on that growth. This plan when followed should make the annual budget much easier to develop. The Financial Management Plan will be updated each year prior to the budget process and used as a guide in preparing the annual budget. This document is key in managing increases in the General Fund, restoring the Art Center Fund to sound financial footing and providing for capital improvements and infrastructure. The Financial Management Plan was developed by staff with assistance from the City’s Financial Advisor who will assist staff in annual updates to the plan to ensure the goals of the City continue to be met. 21 CITY OF HOPKINS • Net Property Tax Cost Median Value Home – This provides information to the council incorporating expected increases in valuation and projecting actual costs on the Median Value Home. The council when setting the tax levy is sensitive to its impact on property owners and this benchmark provides information on how the recommended levy will impact city taxpayers. If the council feels the proposed levy will negatively impact property owners options for reducing the levy are explored. These may include revenues alternatives or expenditure decreases or a combination of both. • Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for each of the City’s general fund programs and demonstrates which city programs are most dependent on taxes. It also provides information to the public on what benefits they receive for their tax dollars. • Capital Improvement Plan – The Capital Improvement Plan (CIP) is a five-year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. • Equipment Replacement Plan –The Equipment Replacement Plan (ERP) is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $1,400,100. Revenues for the ERP are derived from tax levy and charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. FUND STRUCTURE The accounting system maintains a standard fund structure for a typical Minnesota city government. Following is a description of the funds included that are subject to appropriation, for which financial plans and budget appropriations are prepared annually. These funds are the General, Special Revenue, Debt Service, Capital Projects and Enterprise. General Fund The General Fund accounts for all financial transactions not properly accounted for in any other fund, including most of the basic governmental services. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, parks and public works, recreation, planning, engineering and general government. 22 CITY OF HOPKINS Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains fifteen Special Revenue Funds. There are thirteen budgeted Special Revenue Funds. • Chemical Assessment Team Fund – grant funds received from the state restricted for the operation of the Chemical Assessment Team. • Economic Development Fund – revenue sources include interest on loans, taxes, development fees that are used for expenditures relating to housing and redevelopment projects throughout the city. • Tax Increment Funds (7) – tax increment revenues for housing and economic redevelopment projects throughout the city. • Parking Fund – parking permits and parking violation fees help support the maintenance of the city’s current parking lots and ramps. • Communication Fund – franchise fee for cable TV supports cable and communications efforts of the city. • Depot Coffee House Fund – grants, leases and concession revenues support a local chemical free teen center and coffee house. • Art Center Fund – leases, state aids, contributions and program sales support the Hopkins Center for the Arts, which is a community-based center with theater and art at its base. Some of the Special Revenue Funds do not require an annual financial plan because of the nature of the type of revenue and expenditure. Expenditures are authorized on an individual basis. • Hennepin County CDBG Fund – block grant funds used for housing and infrastructure improvements • Hopkins Race and Equity Initiative – contributions from two outside organizations used in a collaborative effort centered on race equity Debt Service Funds Debt service funds account for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City maintains 26 individual debt service funds for the various bond issues. The City has established annual financial plans for all 26 general obligation bond funds, which are shown in total as the GO Debt Service Funds. Capital Project Funds Capital project funds account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has five budgeted funds in this category: • Park Improvement Fund – development and improvement of City parks. Revenue is primarily from park development fees paid by developers. • State Aid Construction Fund – revenue from state aid to assist with maintenance and construction of state aid streets throughout the city. • Capital Improvement Fund – transfers from other funds to cover future improvements or maintenance of city facilities and infrastructure. • Permanent Improvement Revolving Fund – bonds issued to fund reconstruction and maintenance of residential streets throughout the city. • Pavilion Addition Fund – contributions from outside organization and bond proceeds to fund Pavilion addition and remodel. 23 CITY OF HOPKINS Enterprise Funds Enterprise funds account for our business-type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has five Enterprise funds. • Water Utility Fund – water utility fees based on water usage, which covers the expense of distributing water and maintaining the water system infrastructure. • Sewer Utility Fund – sewer utility fees based on water usage, which covers the expense of disposing of sewer products and maintaining the sewer system infrastructure. • Refuse Utility Fund – refuse fee based on size of refuse container, which covers the expense of disposing of refuse products. • Storm Sewer Utility Fund – storm sewer utility fee based on non-permeable surface of property for commercial or a fixed rate for residential properties, which covers the expense of maintaining the storm sewer infrastructure throughout the city. • Pavilion/Ice Arena Fund – rental fees for ice or space, which covers the operating costs of running the facility. 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. The City has three Internal Service Funds and no budgets are prepared for these funds. • Equipment Replacement – revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. • Employee Benefits – to account for compensated absences of non-enterprise employees • Insurance Risk – accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. Major Funds For 2021 the City identifies the following funds as major funds which are described above. All major funds are budgeted. • General Fund • Economic Development Special Revenue Fund • Arts Center Special Revenue Fund • Tax Increment District Super Valu Fund • Permanent Improvement Capital Projects Fund • Water Utility Enterprise Fund • Sewer Utility Enterprise Fund • Storm Sewer Utility Enterprise Fund • Pavilion Enterprise Fund Public art in Hopkins 24 CITY OF HOPKINS City Personnel by Function General Public Community Community Operating Fund Government Finance Police Fire Works Development Services Recreation General Fund Administrative Services X X X Finance X Community Services X Building Maintenance X X X X Police X Fire X Public Works X Recreation X Activity Center X Planning & Zoning X Community Development X Special Revenue Funds Economic Development X Parking X X Communication X Depot Coffee House X Art Center X Enterprise Funds Water X Sewer X Refuse X Storm Sewer X Pavilion X Housing & Redevelopment X Administration of Fund Downtown Hopkins 25 CITY OF HOPKINS Authorized and Actual Staffing Levels Full-Time and Regular Part-Time Positions 1 FTE = an employee who works 40 hours a week In 2020 the 7.0 position reduction between authorized and actual staffing is due to staf vacancies, layoffs and hiring freezes. The City will use this opportunity to review staffing numbers, staffing allocations and make operational changes before moving forward with any new hires. The decrease in authorized staffing from 2020 to 2021 of 1.97 is due to the elimination of positions within the public works department, Art Center and Depot Coffee House. 2018 2019 2020 2020 2021 Authorized Authorized & Actual & Actual Authorized Actual Authorized Administrative Services 5.00 4.00 5.00 5.00 5.55 Finance 4.00 4.00 4.00 4.00 4.00 Municipal Building 1.45 1.45 1.45 1.45 1.45 Community Services 8.95 8.95 8.95 6.95 8.40 Police 38.28 38.45 37.28 37.28 37.28 Fire 4.10 4.10 4.10 4.10 4.10 Public Works 19.98 20.98 20.98 19.98 20.48 Skate Park 0.05 0.05 0.05 0.05 0.05 Activity Center 2.80 3.00 3.00 2.00 3.00 Zoning & Planning 1.35 1.35 1.35 1.35 1.35 Community Development 0.85 0.85 0.85 0.85 0.85 General Fund Total 86.81 87.18 87.01 83.01 86.51 Economic Development 2.00 2.00 2.00 2.00 2.00 Parking 1.12 1.12 1.12 1.12 1.12 Communications 1.00 1.00 1.00 1.00 1.00 Depot Coffee House 5.00 4.62 4.25 2.75 2.75 Art Center 5.28 5.28 5.66 4.66 5.50 Special Revenue Fund Total 14.40 14.02 14.03 11.53 12.37 Water 4.79 3.79 4.79 4.79 4.15 Sanitary Sewer 2.60 2.60 2.60 2.60 2.24 Refuse 3.39 3.39 3.39 3.39 3.56 Storm Sewer 0.63 0.63 0.63 0.63 0.66 Pavilion/Ice Arena 2.70 2.90 2.90 2.40 2.90 Housing & Redevelopment 2.40 2.40 2.40 2.40 2.40 Total Proprietary Funds 16.51 15.71 16.71 16.21 15.90 Total All Funds 117.72 116.91 117.75 110.75 114.78 26 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Function General Government X X X X X X Public Safety X Health and Welfare X Highways and Streets X X Urban Redevelopment and Housing X X Culture and Recreation X X X Capital Outlay X X X X X Debt Service X X X X Water X Sewer X Storm Sewer X Pavilion Enterprise Major Funds Storm Sewer Utility General Fund Water Utility Sewer Utility Tax Increment District - Super Valu Capital Project Permanent Improvement Revolving Economic Dev Arts Center Special Revenue Special Capital Debt Function Revenue Projects Service Enterprise General Government X X X X Public Safety X Health and Welfare X Highways and Streets X Urban Redevelopment and Housing X Culture and Recreation X Capital Outlay X X Debt Service X Refuse X Non-Major Funds The Hopkins Academy, a five week program held in even years during March and April allows residents to get a better understanding of how their City government works. The Academy covers the topics of, General Government, Police, Fire, Public Works and Planning & Economic Development. The program has been well received by the community with over 25 participants each year. The 2020 edition of Hopkins Academy was cancelled due to the COVID-19 Pandemic. The City will continue hosting this event when it is safe to do so. 27 CITY OF HOPKINS Summary Budget Information – Major Funds and Non-Major Funds by Fund Type 2018 2019 2020 2021 Budget Actual Actual Budget Budget Difference %age REVENUES General Fund 13,492,051$ 14,914,457$ 15,361,716$ 15,750,838$ 389,122$ 2.53% Special Revenue Funds Economic Development Fund 584,324$ 1,425,327$ 467,951$ 503,070$ 35,119$ 7.50% Arts Center 974,515$ 1,054,333$ 1,185,836$ 1,084,159$ (101,677)$ -8.57% Non-major Special Revenue Funds 3,282,637$ 4,039,157$ 3,331,039$ 4,141,000$ 809,961$ 24.32% Capital Project Funds Permanent Improvement Fund 10,494,877$ 7,444,465$ 5,925,479$ 4,110,571$ (1,814,908)$ -30.63% Capital Improvement Fund 76,812$ 5,254,052$ 435,000$ 363,494$ (71,506)$ -16.44% Non-major Capital Project Funds 1,164,836$ 862,088$ 305,022$ 1,152,730$ 847,708$ 277.92% Non-major Debt Service Funds 12,958,608$ 23,205,275$ 7,326,952$ 6,505,945$ (821,007)$ -11.21% Enterprise Funds Water Utility Enterprise Fund 1,954,982$ 2,003,101$ 2,256,004$ 2,292,074$ 36,070$ 1.60% Sewer Utility Enterprise Fund 2,780,810$ 3,093,903$ 3,052,340$ 3,105,587$ 53,247$ 1.74% Storm Sewer Enterprise Fund 811,090$ 815,936$ 793,532$ 789,332$ (4,200)$ -0.53% Pavilion Enterprise Fund 396,131$ 525,263$ 781,500$ 823,500$ 42,000$ 5.37% Non-major Enterprise Funds 1,014,553$ 1,010,867$ 1,006,206$ 1,001,941$ (4,265)$ -0.42% EXPENDITURES General Fund 13,726,652$ 14,448,156$ 15,361,716$ 15,750,838$ 389,122$ 2.53% Special Revenue Funds Economic Development Fund 1,854,469$ 315,739$ 430,345$ 498,900$ 68,555$ 15.93% Arts Center 1,025,194$ 979,319$ 1,125,836$ 1,024,159$ (101,677)$ -9.03% Non-major Special Revenue Funds 2,544,129$ 4,349,282$ 2,804,112$ 3,613,865$ 809,753$ 28.88% Capital Project Funds Permanent Improvement Fund 13,076,159$ 7,616,241$ 6,157,000$ 4,102,500$ (2,054,500)$ -33.37% Capital Improvement Fund 336,039$ 4,529,394$ 467,250$ 360,000$ (107,250)$ -22.95% Non-major Capital Project Funds 1,426,027$ 612,271$ 245,500$ 880,698$ 635,198$ 258.74% Non-major Debt Service Funds 12,223,374$ 23,497,521$ 6,837,921$ 7,085,894$ 247,973$ 3.63% Enterprise Funds Water Utility Enterprise Fund 1,937,441$ 2,574,228$ 2,235,099$ 2,198,674$ (36,425)$ -1.63% Sewer Utility Enterprise Fund 2,640,804$ 2,911,888$ 3,025,741$ 2,963,236$ (62,505)$ -2.07% Storm Sewer Enterprise Fund 736,540$ 780,156$ 621,944$ 596,969$ (24,975)$ -4.02% Pavilion Enterprise Fund 689,178$ 1,081,741$ 702,256$ 1,098,360$ 396,104$ 56.40% Non-major Enterprise Funds 747,446$ 949,090$ 1,008,049$ 1,028,220$ 20,171$ 2.00% Major Funds are in bold type 28 CITY OF HOPKINS Summary of Budgeted Funds 2018 2019 2020 2021 Budget Actual Actual Budget Budget Difference % age REVENUES Property Taxes 10,543,110$ 11,714,684$ 12,564,305$ 12,893,552$ 329,247$ 2.62% Intergovernmental 1,330,932 1,384,842 1,352,946 1,474,671 121,725 9.00% Licenses, Permits & Fines 872,864 993,819 777,865 786,815 8,950 1.15% Charges for Services 378,248 433,856 251,050 228,550 (22,500) -8.96% Miscellaneous 53,326 82,588 119,350 71,050 (48,300) -40.47% Franchise Fees 313,571 304,668 296,200 296,200 - 0.00% 13,492,051$ 14,914,457$ 15,361,716$ 15,750,838$ 389,122$ 2.53% APPROPRIATIONS Council 109,970$ 108,214 97,630 102,095$ 4,465$ 4.57% Administrative Services 706,736 800,003 855,056 866,312 11,256 1.32% Finance 317,016 417,350 400,476 426,277 25,801 6.44% Legal 279,372 260,493 175,000 200,000 25,000 14.29% Municipal Building 360,502 380,305 398,472 390,560 (7,912) -1.99% Community Services 1,151,122 1,151,800 1,329,162 1,302,163 (26,999) -2.03% Police 5,492,397 5,673,970 5,977,172 6,242,453 265,281 4.44% Fire 1,433,909 1,594,600 1,483,100 1,566,528 83,428 5.63% Public Works 2,849,193 2,999,450 3,442,841 3,469,191 26,350 0.77% Recreation 671,030 758,341 783,082 748,136 (34,946) -4.46% Planning 234,710 148,417 222,370 233,000 10,630 4.78% Community Development 92,769 103,475 108,155 114,921 6,766 6.26% Unallocated 27,926 51,738 89,200 89,200 - 0.00% 13,726,652$ 14,448,156$ 15,361,716$ 15,750,836$ 389,120$ 2.53% 2018 2019 2020 2021 Budget Actual Actual Budget Budget Difference % age REVENUES Chemical Asses. Team 64,514$ 74,586$ 65,000$ 65,000$ -$ 0.00% Economic Development 584,324 1,425,327 467,951 503,070 35,119 7.50% Parking 136,254 134,585 154,525 121,500 (33,025) -21.37% Communication 258,349 246,104 238,014 243,000 4,986 2.09% HREI 6,000 11,029 6,000 6,000 - 0 Depot Coffee House 335,258 308,016 317,500 233,000 (84,500) -26.61% Art Center 974,515 1,054,333 1,185,836 1,084,159 (101,677) -8.57% Tax Incr Financing (7 funds)2,482,262 3,264,837 2,550,000 3,472,500 922,500 36.18% 4,841,476$ 6,518,817$ 4,984,826$ 5,728,229$ 743,403$ 14.91% APPROPRIATIONS Chemical Assess. Team 61,646$ 78,312$ 65,000$ 65,000$ -$ 0.00% Economic Development 1,854,469 315,739 430,345 498,900 68,555 15.93% Parking 137,095 162,728 150,690 154,875 4,185 2.78% Communication 276,919 458,540 238,656 251,224 12,568 5.27% HREI 7,255 12,186 6,000 6,000 - 0.00% Depot Coffee House 368,508 306,059 296,766 247,266 (49,500) -16.68% Art Center 1,025,194 979,319 1,125,836 1,024,159 (101,677) -9.03% Tax Incr Financing (7 funds)1,692,706 3,331,457 2,047,000 2,889,500 842,500 41.16% 5,423,792$ 5,644,341$ 4,360,293$ 5,136,924$ 776,631$ 17.81% SPECIAL REVENUE FUNDS GENERAL FUND 29 CITY OF HOPKINS 2018 2019 2020 2021 Budget Actual Actual Budget Budget Difference % age REVENUES Water 1,954,982$ 2,003,101$ 2,256,004$ 2,292,074$ 36,070$ 1.60% Sanitary Sewer 2,780,810 3,093,903 3,052,340 3,105,587 53,247 1.74% Refuse 1,014,553 1,010,867 1,006,206 1,001,941 (4,265) -0.42% Storm Sewer 811,090 815,936 793,532 789,332 (4,200) -0.53% Pavilion/Ice Arena 396,131 525,263 781,500 823,500 42,000 5.37% 6,957,566$ 7,449,070$ 7,889,582$ 8,012,434$ 122,852$ 1.56% APPROPRIATIONS Water 1,937,441$ 2,574,228$ 2,235,099$ 2,198,674$ (36,425)$ -1.63% Sanitary Sewer 2,640,804 2,911,888 3,025,741 2,963,236 (62,505) -2.07% Refuse 747,446 949,090 1,008,049 1,028,220 20,171 2.00% Storm Sewer 736,540 780,156 621,944 596,969 (24,975) -4.02% Pavilion/Ice Arena 689,178 1,081,741 702,256 1,098,359 396,103 56.40% 6,751,409$ 8,297,103$ 7,593,089$ 7,885,458$ 292,369$ 3.85% 2018 2019 2020 2021 Budget Actual Actual Budget Budget Difference % age REVENUES Property Taxes 3,074,029$ 3,594,588$ 4,250,154$ 4,108,650$ (141,504)$ -3.33% Special Fees 923,872 987,052 660,764 715,889 55,125 8.34% Miscellaneous 8,648 31,014 14,604 5,889 (8,715) -59.68% Proceeds from Bond Sale 6,883,423 14,857,974 - - - Operating Transfer In 2,068,636 3,734,647 2,401,430 2,864,634 463,204 19.29% 12,958,608$ 23,205,275$ 7,326,952$ 7,695,062$ 368,110$ 5.02% APPROPRIATIONS Bond Principal 3,890,000$ 6,475,000$ 4,730,000$ 5,600,000$ 870,000$ 18.39% Bond Interest 1,479,375 1,660,844 2,081,921 1,870,455 (211,466) -10.16% Miscellaneous other charges 249,562 1,044,064 26,000 - (26,000) -100.00% Transfer out 6,604,437 14,317,613 - - - 0.00% 12,223,374$ 23,497,521$ 6,837,921$ 7,470,455$ 632,534$ 9.25% Total Revenues 38,249,701 52,087,620 35,563,076 37,186,563 1,623,487 4.57% Total Appropriations 38,125,227 51,887,120 34,153,019 36,243,675 2,090,656 6.12% Use of Equity or Fund Balance 124,474 200,500 1,410,057 942,888 (467,169) -33.13% DEBT SERVICE FUNDS (all funds) PROPRIETARY FUNDS 30 CITY OF HOPKINS APPROVED BUDGET SUMMARY – ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. Property Taxes: One purpose of the budget is to communicate the financial plans for the City and its allocation of resources. The budgeted revenues for all funds total $34,040,685. The largest source of revenue by category is property taxes of $21,597,954 comprising 63.11% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits have been on again and off again since 2004 and remain off for 2021. Levy limits while providing assurances to taxpayers do give the City the additional challenges in meeting resident’s requests for sustained services or in some instances increased services. In 2021 budgeted taxes increased in total by 5.83% mainly as a result of new tax increments being collected for fully completed projects. The General Fund had a 2.64% increase in the levy due to increases in expenditures that were not offset by other revenue sources. The total levy, excluding tax increments, certified to taxpayers increased by 1.48% Intergovernmental Revenues: Total $1,593,712 or 4.66% of the City’s revenues. The City currently receives local government aid, highway funding, police and fire aid, chemical assessment grants, fire grants, Community Development Block Grant funds and other miscellaneous state grants. Estimates for intergovernmental revenues are based on known revenue sources and projections are based on information from the various state and county agencies from which the revenues are received. The city has reduced its reliance on revenues from state and federal governments due to decreased availability and reduced funding in the various state programs. Over the past several years the city has been successful in getting grants for specific projects. Those projects are not budgeted due to the uncertainty in the success of our application for those funds. In 2020 we are scheduled to receive $853,671 in Local Government Aid, a $118,725 increase from 2020 that will go to the General Fund and is utilized to reduce the general fund tax levy. 31 CITY OF HOPKINS Utility Fees: For water, sewer, refuse and storm sewer account for $7,011,393 of the City’s revenue or 20.49%. Utility revenue is planned to increase by 1.3% minimally compared to 2020 on flat or minimal rate increases. The City will continue to have incremental rate increases over the next four years. The increased rates will provide adequate cash flow for operating and capital cost. The City conducted a utility rate study in 2016 and raised water and sewer rates were both increased by approximately 40% in 2017. Each subsequent year has seen a more modest rate increase. Rates will increase by 2.0% and 2.0% for water and sewer, respectively. The Storm Sewer and Refuse funds remain healthy and will not have rate increases in 2019. Charges for Services: Other than utilities are $1,611,527 or 4.66% of the City’s revenues. The City charges for plan reviews, special police or fire services, parking permits for city parking facilities, facility rental, concessions and ice time. A large portion of the charges for services include plan review fees from building permits which are conservatively projected to remain flat. The variance in revenues between years is due to development projects and the related plan review fees. Finance relies on plan review fee projections prepared by the City’s Building Official and input from departmental managers on the level of activity expected in their departments when setting the budget for this revenue category. While there are several other development projects on the horizon the City budgets conservatively on plan review fee income due to the uncertainty of the development market which can change depending on developers funding for their proposed projects. Special Assessments: Special assessments are $715,889 or 2.09% of City Revenue. Special Assessments are levied for street, sidewalk, alley, water, sewer or storm sewer improvements that benefit private property. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. In 1999, the City created a housing improvement district to benefit specific housing developments through special assessment fees. The fees were payable over 20 years, between 2000 and 2019. The fees and related payments are complete, causing the significant decrease in budgeted special assessment revenue. . 32 CITY OF HOPKINS License, Permits & Fines: are $806,815 or 2.36% of revenues. Permit revenues are dependent on the economy and on future development of the City. In 2019 due to several large redevelopment projects the City had a very strong years in building permit income. While there are other projects in the works the City chooses not to rely on that income until it becomes reality, therefore building permit income continues to be budgeted conservatively based on an average of the past 10 years. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects. License revenue is based on the types of businesses licensed by the city and past year’s collections. Those revenues remain stable. The City also budgets conservatively for fine revenue as that revenue stream is unpredictable. Fine revenue is only received once the fines are collected by the State of MN which then remits Hopkins’ portion to them. Parking permits and ticket revenues remain stable. Franchise Fees: The City collects franchise fees for cable television, electric and gas utilities. The electric and gas rates were increased in 2019. A residential user will pay $3.50 monthly each for gas and electric, or $7.00 per month. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in budgeted funds will be $536,200 or 1.57% of City revenues. The City also deposits franchise fees in capital improvement funds that are not budgeted. The City expected collections of $300,000 and $360,000 for the Park Improvement and Capital Improvement funds, respectively. The City uses franchise fees for four different purposes: 1. To provide live streaming and archiving of city council and other meetings, 2. For capital improvement, specifically funding a City Hall renovation, 3. For Park Improvements and 4. To reduce the levy in the general fund. Total 2021 Budgeted Revenue: Increased from 2020 as a result of increased tax revenues and local government aid received from Minnesota. The 2021 budget was prepared with increased and decreased revenue as described above. The City workforce has remained stable with many long-term employees. Like other cities we continue to do more with less and work to maximize the budget dollars we do have to work with. Staff has been very conscientious in the management of departmental budgets which has allowed us to maintain staffing while providing the same level if not better services to the public. 33 CITY OF HOPKINS Major Revenue Trends: The chart to the right is showing the trends of three of our major revenue sources. Taxes include both property taxes and tax increments. Taxes continue to increase as other sources of revenue decrease and new tax increment projects come on the tax rolls. Intergovernmental revenues increased in 2021 due to higher allotment of local government aid; we have also continued to be successful in receiving federal COPS grant, a fire prevention and safety grant and DWI officer grant. Intergovernmental revenues are less reliable and the City is cognizant of that during the budget process. Tax revenues have risen fill that gap; however we continue to seek other revenue sources to meet our budget needs which include grants. Utility charges have remained steady. Shown below is a chart showing the relationship between all revenue sources. 34 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $35,243,675. This is less than anticipated revenues for 2021 and results in an increase of fund balance of $942,888 overall. The special revenue funds will add $591,305 where tax increments revenues will exceed needs other funds such as the parking fund and communication fund are projected to decrease their fund balance, partially as a result of the COVID-19 pandemic. Enterprise funds are budgeted to increase their net position by $126,975 as we work to rebuild fund equity and bring the water and sewer fund to a more stable financial position. Debt service funds will see an increase of $224,607 as our debt service levy increases for new bond issuances. The largest source of appropriations by category is employee salaries and benefits at $14,859,647. Employee salary and benefits make up 41.00% of the City’s annual appropriation and represent a 3.29% increase from 2020 budget. The City completed a classification and compensation study for all employees in 2018. The resulting wage scales were used for the 2021 budget. All union contracts expire on 12/31/20 and were not settled at the time of budget adoption. Materials, supplies and services make up 23.28% of appropriations at $8,438,025. This amount represents a 2.08% decrease from the 2020 budget. The City has made minor decreases between 2020 and 2021 due to some of the economic effects of the COVID-19 pandemic. Staff continues to be as efficient as possible when purchasing materials and supplies and using outside services. Capital outlay and improvements can fluctuate substantially every year. In 2021, the appropriated amount is $84,350 or 0.23% of total appropriations. Anticipated capital costs are street equipment and improvements at the Arts Center. Staff was instructed to keep capital items at a minimum as funding restrictions continue to present challenges in budgeting. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets. Debt repayment make up 24.30% of appropriations at $8,805,489. This amount represents an increase of 12.67% from 2020 due to debt associated with TIF pay-as-you-go obligations. The six largest programs of the City in 2021 account for 90% of the appropriations budget and are as follows: Public Safety 7.9 million Debt 7.5 million Utilities (water, sewer, storm sewer, refuse) 6.8 million General Government 3.6 million Public Works 3.6 million Recreation 3.1 million 35 CITY OF HOPKINS 36 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2018 2019 2020 2021 SOURCE ACTUAL ACTUAL BUDGET BUDGET Current Revenues PROPERTY TAX $14,564,111 $16,136,963 $17,882,635 $18,051,454 TAX INCREMENT 2,568,500 3,209,850 2,525,500 3,546,500 SPECIAL ASSESSMENTS 911,090 987,053 660,764 715,889 LICENSE, PERMITS & FINES 801,065 1,010,483 804,065 806,815 INTERGOVERNMENTAL REVENUE 1,380,933 2,636,705 1,526,252 1,593,712 CHARGES FOR CURRENT SERVICES 1,583,956 2,038,434 1,754,486 1,611,527 INTEREST ON INVESTMENTS 71,560 137,425 72,804 49,389 UTILITY SERVICE CHARGES 6,843,384 6,613,962 6,920,576 7,011,393 FRANCHISE FEES 553,000 517,967 525,014 536,200 OTHER REVENUES 426,750 81,466 389,550 299,050 TOTAL CURRENT REVENUES $29,704,349 $33,370,308 $33,061,646 $34,221,929 Other Financing Sources - 14,857,974 - - TOTAL REVENUES $29,704,349 $48,228,282 $33,061,646 $34,221,929 Add: Inter-Fund Transfers 1,981,653 3,859,340 2,501,431 2,964,634 TOTAL REVENUES $31,686,002 $52,087,622 $35,563,077 $37,186,563 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECT ADOPTED 2018 2019 2020 2021 OBJECTIVE ACTUAL ACTUAL BUDGET BUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS $12,301,377 $13,315,463 $14,386,040 $14,859,647 MATERIALS, SUPPLIES AND SERVICES 8,351,624 11,842,924 8,616,837 8,438,025 CAPITAL OUTLAY 244,800 0 135,250 84,350 DEPRECIATION 775,000 1,475,126 1,070,000 1,520,200 DEBT REPAYMENT 5,937,267 8,374,495 7,815,463 8,805,489 TOTAL $27,610,068 $35,008,008 $32,023,590 $33,707,712 Other Financing Uses 1,737,530 16,879,111 2,129,429 2,535,963 TOTAL EXPENDITURES $29,347,598 $51,887,119 $34,153,019 $36,243,675 37 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2011 to 2020 reflects overall increased market value of property in Hopkins from redevelopment. During the years 2011-2013 the housing market saw significant declines across the country and Hopkins was no exception. The chart to the right depicts tax capacity value over the last ten years as of January 2 or each year. Since 2014, Hopkins continued to have growth due to commercial development that was already in place when the market turned and a recovering housing market. Based on preliminary information, the tax capacity is expected to continue to grow as of January 2, 2021. Values for restaurants, gyms and theaters are expected to remain flat or decrease slightly. Other property types are expected to see moderate growth from increasing market values or redevelopment. One goal of the city council is to preserve the current housing stock and promote housing growth. As mentioned above housing values have increased this past year which has added to the tax capacity. One factor impacting the tax capacity is the Market Value Homestead Credit which removes a portion of homeowner’s values from the tax rolls. This credit is reduced as the value of a home increases until it is phased out entirely at about a home value of $414,000. Other property classes primarily commercial have increased slightly which has mitigated the overall decrease in market values. 38 CITY OF HOPKINS Changes in property taxes The chart at the left shows the percentage of homeowners that saw changes in total property taxes paid based on preliminary levies passed in September. About 43.0% saw decreases in their property taxes, 30.1% saw increases of less than 5% and 26.9 saw increases of 5% or greater. The preliminary levy passed in September had a 2.82% increase from 2020, compared to the final levy increase of 1.48% over 2020. 2020 Property Taxes by Taxing Districts The City’s levy is allocated against the tax base along with the levies for the school district, county and miscellaneous government entities. The median value home in Hopkins is valued at $291,000 and is projected to pay $4,394 in property taxes in 2021 (based on preliminary levies passed in September). The chart to the right shows the components of City of Hopkins taxes by taxing district. City Property Tax Levy Shown to the left is the annual cost of CITY taxes on a home valued at $225,000 in each year and based on the City’s median value in each year, called change in value. The Cities median value home has increased from $191,000 in 2012 to $291,000 in 2020. Taxes for 2012, 2013 and 2014 had small increases and 2015 saw the implementation of the Financial Management Plan (FMP) which provided new debt levies for the Pavilion and Art Center as we work to get these funds into a more stable financial position. The 2021 tax levy provides for the continuation of outstanding customer service by City workers, exceptional police and fire protection and helps maintain a vibrant, authentic downtown. This residential property owner in Hopkins will experience a $25 increase in City property taxes in 2021. The total City taxes on a median valued home would be $1,852 in 2021 as compared to $1,827 in 2021. 39 CITY OF HOPKINS Shown below is a summary of annual costs an average homeowner would expect to pay living in Hopkins. Water and sewer rates were increased for 2019 as based on the City’s Utility Rate Plan and continued capital costs. 2019 will be the third year the City used a tiered rate structure. Refuse rates are analyzed each year and if necessary are only increased every couple of years. There was no increase in refuse or recycling rates for 2019. The storm sewer rate is not expected to increase in the near future. Hopkins utility rates continue to rank in the middle tier of the Minneapolis/St. Paul metropolitan area despite the rate increases. City Levy – By Purpose In 2021 the City continued its property tax levy for the purpose of funding the debt for the residential streets, portions of Blake Road and portions of City Hall renovations. In 2021 levy limits were once again eliminated and remain off for 2021. 2021 2020 General Fund $12,808,552 $12,479,305 2.64% increase Capital Levy - 75,000 -100.00% decrease Arts Center 331,182 325,225 1.83% increase Pavilion Fund 340,000 290,000 100.00% increase Equipment Replacement 200,000 110,000 100.00% increase Debt 4,108,650 4,250,154 -3.33% decrease Total Levy $17,788,384 $17,529,684 1.48% increase Council $9.93 Administrative Services $84.27 Finance $40.74 Legal $7.30 Unallocated $8.68 Municipal Building $37.99 Community Services $68.63 Police $557.15 Fire $139.22 Public Works $318.22 Recreation $28.34 Activity Center $36.51 Planning and Community Development $30.59 Capital $0.00 Equipment Replacement $19.46 Arts Center $32.22 Pavilion $33.07 Debt $399.68 Annual Cost for City Services $1,852.00 2021 Annual Property Tax Cost (average home)Annual Service Cost City of Hopkins Average Annual Service Costs on an Average Home. 2021 2020 City Property Taxes $1,852.00 $1,852.00 Water - Consumption 7,500 gallons a month $3.10/$3.56/$4.09 Tiered Rates $355.99 $3.04/$3.49/$4.01 Tiered Rates $349.03 Sewer - Consumption 5,000 gallons a month $6.86/ 1,000 gallons $411.60 $6.73/ 1,000 gallons $403.80 Refuse Collection $262.20 $262.20 Storm Sewer $60.00 $60.00 Franchise Fees $84.00 $84.00 Total $3,025.79 $3,011.03 40 CITY OF HOPKINS A city tax rate of 66.161% result in payments of $1,852 annually or approximately $154 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. Net annual property tax costs for program budgets The City’s overall net levy increase is 1.48%. The general fund levy increased in 2021 by 2.64% or $329,247. The debt levy was decreased due to utilizing franchise fees to make payments on debt associated with park projects. The debt levy decrease was 3.33% or $141,504. The capital levy was eliminated to lower the 2021 tax levy with projects being delayed to later years. The Arts Center levy was increased by 1.83% to $331,182. The City continues an equipment replacement levy for 2021 to help offset the costs of equipment and information technology. The total levy increase for 2021 is $258,700 or 1.48%. The City’s tax rate will decrease by 3.139%% from 69.300% to 66.161%. City Council and Management Staff celebrating the grand re-opening of City Hall following the 2019 renovation and remodel to better suit staff and provide enhanced customer service to our residents and business owners. 41 CITY OF HOPKINS Shown to the left are the main taxpayers in the City of Hopkins and their percentage of total tax capacity. The largest taxpayer comprises 5.72% of total tax capacity and the next largest taxpayer comprises 2.74%. The city has a diverse and stable tax base, which provides the city with assurance that tax revenues will remain stable against the loss of a significant taxpayer. Major employers in Hopkins include UNFI (formerly Super Valu) a wholesale food distributor, followed by ISD 270 and Cargill, a public school district and international producer and market of food, agricultural and industrial products. While these three organizations employ over 20% of the workforce in Hopkins, the City has a diverse group of employers with long-term presence in the City. PRINCIPAL EMPLOYERS 1 Percentage of Total Taxpayer Type of Business Employees Employment UNFI (SuperValu)Wholesale food distribution 1,400 7.159 % ISD 270 Hopkins Elementary and Secondary School 1,365 6.980 % Cargill Agricultural products 1,215 6.213 % Thermotech Plastic mold manufacturer 400 2.046 % US Post Office Post Office 314 1.606 % Oak Ridge Country Club County/Golf Club 185 0.946 % Augustana Chapel View Care Center Nursing home 185 0.946 % US Bank Financial Institution 185 0.946 % City of Hopkins Municipal Government 116 0.593 % Walser Auto Group Automobile dealer 100 0.511 % Taxpayer Type of Business Tax Capacity Percentage of Total Tax Capacity Piedmont 9320 Excelsior Blvd Commerical 814,970 2.74% Colfin Midwest Commerical 1,704,370 5.72% Doran 810 Apartments Apartments 688,750 2.31% Hopkins Distribution Co LLC Industrial 507,250 1.70% Ramsgate Apartments Apartments 476,525 1.60% Southwest Real Estate, Inc.Apartments 335,890 1.13% Greenfield Apartments LP Apartments 579,376 1.94% Hopkins Apartments LLC Apartments 281,288 0.94% The Luther Co LTD Commerical 265,368 0.89% Duke Realty Industrial 262,290 0.88% City's Total Tax Capacity 29,796,301 PRINCIPAL TAXPAYERS 42 CITY OF HOPKINS Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. The general fund balance is preliminary and unaudited. The 2021 budget was adopted based on projected cost of living increases in for unsettled union contracts and expected step movements. The general fund is below its fund balance goal of 42% of expenditures and is at 39% of expenditures. Staff continues to work to address how to manage the financial position so that we maintain our fund balance goal. This may involve new or revised revenue options, expenditure adjustments or a combination of all these options. The Economic Development Fund’s 2020 tax revenue collections were over budget as excess tax increment revenues were received. These are revenues over and above what is required in the tax increment plans and therefore are reported in the Economic Development fund to be used for future development. The Economic Development fund provides the funding to assist in development efforts in Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is an economic development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The fund plans to add approximately $4,000 to fund balance while still being able to provide funding for future development incentives. Estimated YE 2020 Fund Balance/% Change $ Change Reason for Working Ending in Fund in Fund Greater than Fund Name Capital*Revenues Expenditures Balance Balance Balance 10% Variance Major Funds General Fund $6,083,989 $15,750,838 $15,750,838 $6,083,989 0.00%- Economic Development Special Revenue Fund 4,342,764 503,070 498,900 4,346,934 0.10% 4,170 Art Center (1,096,077) 1,084,159 1,024,159 (1,036,077) 5.47% 60,000 Permanent Improvement Revolving Fund (925,676) 4,110,571 4,102,500.00 (917,605) -0.87% 8,071 Water Enterprise Fund * (1,395,526) 2,292,074 2,068,874 (1,172,326) -15.99% 223,200 Sewer Enterprise Fund * 576,536 3,105,587 2,734,268 947,855 64.41% 371,319 Water and Sewer rates were increased in 2021 to c ontinue to improve financial stability of funds and pay for capital costs. Storm Sewer Enterprise Fund * 1,514,975 789,332 423,565 1,880,742 24.14% 365,767 Bonds will be sold in 2021 for the planned infastructure projects. Pavilion *(483,781) 823,500 818,359 (478,640) 1.06% 5,141 43 CITY OF HOPKINS The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid-1990’s. The Art Center has long-term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives supporting transfers from the Communication and Economic Development funds. In 2016 staffing was restructured to minimize expenses and is continually evaluated to ensure budget goals are met while meeting the needs of the users. The Arts Center has successfully revamped its concert programming to appeal to a wider audience, the 2018 and 2019 concert series were both financial successes. The 2020 concert series was cancelled due to the COVID-19 pandemic. The Arts Center made significant budget reductions in 2020 and is still on target to meet financial goals. The Art Center funding issues will be addressed by a $60,000 annual tax levy to pay back the outstanding deficit owed to the general fund.. It is anticipated that the negative fund balance will be eliminated in 2039. The Permanent Improvement Revolving Fund will increase its fund balance in 2031. Bonds are issued to fund street projects and all expenditures are included in the fund. Increases and decreases in the fund are primarily timing difference between bond issuances and construction costs. The Water Enterprise Fund’s working capital is expected to increase slightly in 2020. Rates were increased by 2%. A water rate study was first implemented in 2016 to address the growing capital and replacement costs in the fund. The fund will continue to see incremental increases to rates each year. The Sewer Enterprise Fund’s working capital is expected to grow in slightly in 2020. Rates were increase by 2%. A sewer rate study was first implemented in 2016 to address the growing capital and replacement costs in the fund, however fees paid to the Metropolitan Council represent over half of the costs in the sewer budget. Sewer charges paid to the Metropolitan Council will decrease by 3.0% in 2021 The Storm Sewer Enterprise Fund’s working capital will increase in 2020 as fees continue to exceed expenses. The Storm Sewer Fund is adequately funded for projected operations and infrastructure improvements and no rate increased are planned for the near future. The Pavilion Ice Arena will show a net decrease in 2021 due to depreciation being charged for a 2018 renovation; staff continues to actively market the facility to various groups to increase off season rental income and eliminate the negative cash position. These efforts are paying off as an underutilized portion of the facility is being leased to the Hopkins School District. The Artery is a bike, pedestrian and vehicle connection and community space connecting a future light rail station with historic downtown. 44 CITY OF HOPKINS Non-Major Funds The Chemical Assessment fund is part of the State Chemical Assessment Team program where seven teams are placed around the state to respond to hazardous waste calls. Hopkins has one of the teams that is supported by the Fire Department and fully funded by the state. The expenditures are reimbursed in full by the state. The Parking fund, fund balance is projected to decrease in 2020. The parking fund’s primary revenue source is parking permits for nearby office buildings. The fund has seen a significant decrease due to the COVID-19 Pandemic and the prevalence of employees working from home. The city is evaluating the future funding sources needed to maintain the parking lots and cover operations. The Communication fund will continue to support the advertising and promotion of the Art Center by transferring $50,000 to the Arts Center. The council and staff continue to work at relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals. The Depot Coffee House is a chemical free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project is being supported by the General Fund with a $20,000 transfer as well as the Hopkins-Minnetonka Joint Recreation program ($20,000), Three Rivers Park District ($20,000) and Hopkins School District ($50,000). The coffee shop portion of the Youth Center has historically been a successful venture of the Depot and able to provide funding for the youth project. Estimated YE 2020 Fund Balance/% Change $ Change Reason for Working Ending in Fund in Fund Greater than Fund Name Capital*Revenues Expenditures Balance Balance Balance 10% Variance Chemical Assessment - 65,000 65,000 - 0.00%- Parking 112,071 121,500 154,875 78,696 -29.78% (33,375)COVID Pandemic altered the need for parking permits. Will continue to evaluate proper funding sources. Communications 330,289 243,000 251,224 322,065 -2.49% (8,224) HREI 692 6,000 6,000 692 0.00%0 Depot Coffee House (62,581) 233,000 247,266 (76,847) -22.80% (14,266)Coffee shop operations were evaluated and changes made so that this fund can build fund equity for future projects. Tax Increment Funds (aggregate) 459,761 3,472,500 2,889,500 1,042,761 126.81% 583,000 Funds collected are replenishing negative fund balance as the districts tax collections increase Debt Service Funds (aggregate) 6,733,033 7,695,062 7,470,455 6,957,640 3.34% 224,607 Enterprise Refuse *1,178,340 1,006,206 1,008,049 1,176,497 -0.16% (1,843) Non-Major Funds Special Revenue Funds 45 CITY OF HOPKINS The coffee shop has been unable to be profitable in 2017-2019 due nearby construction projects and 2020 due to the COVID-19 pandemic. The facility has eliminated positions, implemented price increases and reduced hours during less profitable times. In conjunction with the coffee business we offer rental of the facility when not used by the youth and we anticipate increased revenues from that source that will supplement the budget. With the changes made we expect that the coffee shop will continue to provide support for the youth programming and provide adequate funds for cash flow. Tax Increment fund balance may be used to retire tax increment debt early. Currently most tax increment funds meet their combined fund balance goals. Debt Service fund balance may be used to retire general obligation debt. All debt service funds meet their debt service needs. The Refuse Enterprise Fund has several programs that are subsidized by the refuse rates. The City has explored charging separate fees for these services but has met with resistance from the public. Staff continues to explore options for having these programs generate at least some revenue. Refuse rates were not increased for 2021. Working capital continues to be adequate for this operation. Debt Overview The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor’s’ AA+ debt ratings. In January 2014 the city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA to AA+. This rating has been upheld for each subsequent bond issuance. Standard and Poor’s stated that this is based on the city’s rated the City as having very strong economy, very strong management, very strong budgetary flexibility and very strong liquidity. The City’s total outstanding debt on December 31, 2019, was $76,375,000. The City’s per capita debt at December 31, 2019 is $3,874. The total debt principal and interest due in 2021 is $8,650,204 of which $4,108,650 is raised through direct tax levy. The remaining principal and interest is paid with refunding bonds, direct fees, utility fees, tax increments, and special assessments. As depicted in the graph on the following page debt service requirements continue to decline steadily throughout the remaining terms of the bonds. The requirements drop to $5,610,489 in 2030 and to $2,706,083 in 2034 before the final issue matures in 2036. The ability to retire 81% of the City’s debt in the next ten years is a major strength. The City is planning on issuing, GO bonds for residential street project, utility improvements and mill & overlay in 2021. The actual amount to be bonded is estimated at $8,425,000 and will include as revenue sources a tax levy, utility revenues, and special assessments. Budget impact of the new debt has been factored into the utility funds budgets and the tax levy portion has been factored into the long-range Financial Management Plan. Part of the Financial Management Plan is to minimize tax increases to the taxpayers. Debt that is needed for future projects is part of that plan. The City has maintained an AA+ bond rating since 2014. 46 CITY OF HOPKINS The graph below illustrates the retirement of debt (principal and interest) in years 2020 through 2036. OUTSTANDING DEBT AND PURPOSE 2020B GO Refunding Bonds Refunding of 2012B & 2013A Bonds $ 3,990,000 2020A GO Bonds Street Improvement and Revenue $ 8,585,000 2019B GO Refunding Bonds Refunding of 2009A and 2009B Bonds $ 1,705,000 2019A GO Improvement Bonds Street Improvements, City Hall & Utility Revenue $ 12,185,000 2018A GO Improvement Bonds Street Improvements $ 6,330,000 2018B GO Tax Abatement Bonds Parks and Water & Sewer Improvements $ 3,110,000 2017A GO Improvement Bonds Street Improvements $ 10,555,000 2017B GO Tax Abatement Bonds Parks and Water & Sewer Improvements $ 2,850,000 2016A GO Improvement Bonds Street Improvements $ 3,570,000 2016B GO Tax Abatement Parks and Municipal Parking Ramp $ 1,335,000 2016C GO Bonds Equipment Certificates & Water Revenue Bonds $ 2,050,000 2016D GO Tax Increment Revenue Refunding Bonds Refunding of 2009 HRA Tax Increment Revenue Bonds $ 2,855,000 2015A GO Street Reconstruction Bonds Street Improvements $ 3,130,000 2015B GO Tax Abatement Cottageville Park and Parking Lot Improvements $ 2,455,000 2015C GO Tax Increment Revenue Refunding Bonds Refunding of 2008 HRA Tax Increment Revenue Bonds $ 3,195,000 2015D GO Tax Increment Revenue Refunding Bonds Refunding of 2007 HRA Tax Increment Revenue Bonds $ 5,640,000 2014A GO Improvement Bonds Street Improvements $ 1,320,000 2014B GO Refunding Bonds Refunding of 2007A and 2007B Bonds $ 2,255,000 2013A GO Improvement Bonds Street Improvements $ 2,315,000 2012A GO Capital Improvement Plan Bonds Police Station Expansion and Remodeling $ 550,000 2012B GO Bonds Street Improvements and Equipment Purchases $ 2,750,000 2010B GO Refunding Bonds County Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A) $ 775,000 Total Outstanding Debt December 31, 2020 83,505,000$ Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $2,203,931,800 in 2020. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $66,117,954; outstanding debt being paid solely from taxes is $27,440,000 or 42% of total debt limit allowed. 47 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS Principal Interest Principal Interest Principal Interest Principal Interest 2021 1,115,000 286,105 460,000 98,800 640,000 449,228 3,995,000 1,606,071 2022 1,165,000 259,378 465,000 88,350 815,000 420,031 4,480,000 1,490,169 2023 1,230,000 229,933 475,000 77,750 1,155,000 388,629 4,590,000 1,347,277 2024 1,090,000 201,013 490,000 66,875 1,105,000 359,296 3,700,000 1,206,488 2025 1,295,000 171,644 500,000 55,700 1,135,000 309,896 3,835,000 1,070,238 2026 1,350,000 139,844 515,000 44,225 1,190,000 270,696 3,820,000 930,633 2027 1,410,000 107,450 520,000 32,284 1,255,000 231,181 3,540,000 798,891 2028 1,470,000 72,744 535,000 19,506 1,290,000 190,970 3,665,000 676,379 2029 1,540,000 35,031 290,000 8,766 1,135,000 152,587 3,460,000 557,946 2030 555,000 7,631 150,000 2,343 900,000 120,200 3,435,000 440,315 2031 - - - - 930,000 94,950 3,510,000 331,508 2032 - - - - 870,000 72,800 3,290,000 234,063 2033 - - - - 890,000 50,950 2,890,000 144,675 2034 - - - - 785,000 30,475 1,815,000 75,608 2035 - - - - 535,000 15,425 1,345,000 29,535 2036 490,000 4,900 395,000 8,690 12,220,000$ 1,510,771$ 4,400,000$ 494,599$ 15,120,000$ 3,162,214$ 51,765,000$ 10,948,486$ Tax Increment Bonds Special Assmnt Bonds Revenue Bonds G.O Bonds An example of a recently completed street reconstruction project. Total Principal Interest 2021 6,210,000 2,440,204 2022 6,925,000 2,257,928 2023 7,450,000 2,043,589 2024 6,385,000 1,833,672 2025 6,765,000 1,607,478 2026 6,875,000 1,385,398 2027 6,725,000 1,169,806 2028 6,960,000 959,599 2029 6,425,000 754,330 2030 5,040,000 570,489 2031 4,440,000 426,458 2032 4,160,000 306,863 2033 3,780,000 195,625 2034 2,600,000 106,083 2035 1,880,000 44,960 2036 885,000 13,590 83,505,000$ 16,116,070$ 48 CITY OF HOPKINS The following is a schedule of the City’s debt by major and non-major funds. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. Enterprise Fund debt consists of water, sewer, storm sewer debt and Pavilion. Water, sewer, storm sewer enterprise fund debt are major funds, the Pavilion is a non-major fund. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Principal Interest Principal Interest Principal Interest 2021 6,210,000 2,440,204 5,570,000 1,990,976 5,570,000 1,990,976 2022 6,925,000 2,257,928 6,110,000 1,837,897 6,110,000 1,837,897 2023 7,450,000 2,043,589 6,295,000 1,654,960 6,295,000 1,654,960 2024 6,385,000 1,833,672 5,280,000 1,474,376 5,280,000 1,474,376 2025 6,765,000 1,607,478 5,630,000 1,297,582 5,630,000 1,297,582 2026 6,875,000 1,385,398 5,685,000 1,114,702 5,685,000 1,114,702 2027 6,725,000 1,169,806 5,470,000 938,625 5,470,000 938,625 2028 6,960,000 959,599 5,670,000 768,629 5,670,000 768,629 2029 6,425,000 754,330 5,290,000 601,743 5,290,000 601,743 2030 5,040,000 570,489 4,140,000 450,289 4,140,000 450,289 2031 4,440,000 426,458 3,510,000 331,508 3,510,000 331,508 2032 4,160,000 306,863 3,290,000 234,063 3,290,000 234,063 2033 3,780,000 195,625 2,890,000 144,675 2,890,000 144,675 2034 2,600,000 106,083 1,815,000 75,608 1,815,000 75,608 2035 1,880,000 44,960 1,345,000 29,535 1,345,000 29,535 2036 885,000 13,590 395,000 8,690 395,000 8,690 83,505,000$ 16,116,070$ 68,385,000$ 12,953,856$ 68,385,000$ 12,953,856$ Total - All Funds Non-Major Funds - Aggregate Debt Service Fund Bonds Total Debt Service Fund Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 195,200 146,435 117,400 126,835 127,400 84,758 200,000 91,200 640,000 449,228 286,600 139,738 154,200 118,074 164,200 76,970 210,000 85,250 815,000 420,031 422,050 129,135 267,740 110,203 270,210 70,016 195,000 79,275 1,155,000 388,629 434,100 118,838 278,620 102,501 192,280 64,608 200,000 73,350 1,105,000 359,296 445,200 100,474 285,600 88,179 199,200 56,968 205,000 67,275 1,135,000 309,896 471,650 85,938 300,540 77,071 207,810 46,638 210,000 61,050 1,190,000 270,696 494,100 71,232 318,720 65,887 227,180 39,387 215,000 54,675 1,255,000 231,181 505,000 56,466 327,050 54,509 232,950 31,920 225,000 48,075 1,290,000 190,970 410,350 42,996 303,780 43,406 190,870 24,935 230,000 41,250 1,135,000 152,587 281,800 32,660 242,460 33,751 135,740 19,589 240,000 34,200 900,000 120,200 290,950 25,447 253,540 26,464 140,510 16,114 245,000 26,925 930,000 94,950 218,800 19,876 259,000 20,172 142,200 13,252 250,000 19,500 870,000 72,800 222,600 14,984 262,120 13,775 145,280 10,341 260,000 11,850 890,000 50,950 203,600 10,358 171,640 8,715 144,760 7,423 265,000 3,975 785,000 30,475 209,900 5,961 177,260 4,968 147,840 4,497 - - 535,000 15,425 186,200 1,862 152,880 1,529 150,920 1,509 - - 490,000 4,900 5,278,100$ 1,002,400$ 3,872,550$ 896,039$ 2,819,350$ 568,925$ 3,150,000$ 697,850$ 15,120,000$ 3,162,214$ Major Enterprise Fund Bonds Sewer Fund Bonds Storm Sewer Fund Bonds Pavilion Fund Bonds Total Enterprise FundsWater Fund Bonds 49 CITY OF HOPKINS Through the visioning process the City has discovered that there are many community needs that the City of Hopkins must meet. The future debt capacity will allow the City to issue debt to provide for our community’s needs and desires while keeping property taxes reasonable. CAPITAL EXPENDITURES Capital Improvement Plan The Capital Improvement Plan (CIP) is a five-year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. The complete CIP is posted on the city’s website and includes details of each project, the funding sources and a city map showing the street projects for the next five years color coded by project year. Principal and interest payments for the City are projected to stay fairly level over the next several years before dropping in 2024 and again in 2030. 50 CITY OF HOPKINS 2021 Capital Improvement Projects Building Improvements The Hopkins Center for the Arts built in 1997 has been upgrading and enhancing the facility that is over 20 years old. The facility has three projects planned for 2020. The projects are to install a new key card system and replace tile flooring and carpeting. The 2021 projects will continue to enhance the facility and be a noticeable improvement for all patrons at the facility. The Activity Center, a facility for senior programming, has no projects scheduled in 2021. Hopkins City Hall was renovated in 2019. The project included lobby replacement, council chamber equipment upgrade, city hall roof, city hall carpet and window replacement and cost approximately $4.8 million. There are no projects scheduled in 2021. The Pavilion Ice Arena built in 1990 completed a $5.7 million renovation in 2018. The pavilion now has a environmental friendly refrigeration plan, expanded locker rooms, shower rooms, expanded lobby and floor improvements. There are no projects scheduled in 2021. Parks – Shady Oak Beach, a facility shared with the City of Minnetonka will get beach improvements. The City of Hopkin’s share of project cost is 33%. Pedestrian and Bike Trail Improvements – The City recently adopted a plan to increase pedestrian and bicycle access and safety. As part of that plan a number of bike lanes will be painted along with constructing trails and sidewalks. There are no operational or budgetary savings from this project but is done as the City’s commitment to healthy living for Hopkins area residents. Street & Pavement Management – A funding and implementation plan for repair and maintenance of Hopkins roadways exists. Needs are identified and funded through State Aids, special assessments, utilities, tax increments and annual levies. This program identifies the most opportune time to repair streets. In 2021 the City anticipates spending approximately $10,115,000 on street improvements that also include water, sewer and storm sewer infrastructure improvements. The largest projects is second half of the 2020/2021 street reconstruction project at $9.4 million. Also scheduled are street sign replacements of aged regulatory and warning signs. A proactive pavement management and infrastructure improvement program aids in keeping public works maintenance costs to a reasonable level and as a result of the city’s program, maintenance costs have remained relatively stable over the last five years. Planned street reconstruction costs will annually save the city an estimated $25,000 in sealcoating and crack seal expenses. Utilities – Included in the CIP for 2020 is sewer lining, annual storm drainage maintenance in the form of concrete alley repairs, along with upgrade of water, sewer and storm sewer lines done in conjunction with residential street improvements. Operational impacts are reduced maintenance costs within the utility funds estimated at $5,000-10,000 annually. 51 CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2021 The projects described above and on the previous page are planned for 2021. The complete Capital Improvement Plan (CIP) is five years. Both of the CIP and Equipment Replacement Plan (ERP) described on the following page assist the City with budgeting. Equipment Replacement Plan 2020 Equipment Replacement In addition to the CIP, the City also completes an Equipment Replacement Plan (ERP). The ERP is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $1.4 million. Revenues for the ERP are derived from tax levy and charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. Project Title Investment Project Description Arts Center $22,000 Carpeting Arts Center $15,000 Tile Flooring Arts Center $20,000 Key Card Exterior & Interior Access Public Works: Parks $30,000 Shady Oak Beach - Picnic Shelter Residential Street Improvements $9,390,000 2021 Residential Street Improvement Project Pedestrian & Bike Improvements $25,000 Painting Bike Lanes, Constructing Trails and Sidewalks Street Rehabilitation Improvements $725,000 Various streets as identified in the street management plan Street Sign Management $20,000 Replace Aged Regulatory and Warning Signs Central Business District Lighting $100,000 Various LED Lighting Upgrades City Street Lighting Upgrades $110,000 Lighting Upgrades at Feltl Ct Hopkins Crossroads (CSAH 73) Trails $100,000 Construct off-road trail at Bellgrove Public Works: Utilities $24,000 Storm Drainage System Maintenance Public Works: Utilities $50,000 Sewer Lining Recreation $10,000 Shady Oak Beach Improvements TOTAL $10,641,000 52 CITY OF HOPKINS The following items are in the 2021-2025 ERP and have been approved for purchase in 2021. 2021 Other Budgeted Capital Expenditures Along with the Capital Improvement and Equipment Replacement Plans the city has the following capital items budgeted in the operating budgets of the General Fund. The first year an item is requested it must be funded within the department making the request. Once the item has been funded it will be placed in the ERP for future replacement. All construction related capital items are always placed in the CIP regardless of the funding source. Items with a value of $5,000 or greater are defined as capital expenditures within the General Fund. Items with a value of $5,000 or more will be placed in the ERP for future replacement once funded by the department making the request. The exception is capital items in the Chemical Assessment Team Special Revenue Fund, which is fully funded by State of Minnesota HazMat grant dollars. There are no capital items in the 2021 General Fund. Total budgeted capital items from all funding sources totals $11,195,199 for 2021. Project Title Investment Project Description TECHNOLOGY UPGRADES $22,000 CH - NETWORK SERVER TECHNOLOGY UPGRADES $33,075 COMPUTERS TECHNOLOGY UPGRADES $33,000 IT - OFFICE 365 TECHNOLOGY UPGRADES $10,000 IT - PATCHING AUTOMATION SOFTWARE TECHNOLOGY UPGRADES $21,000 IT - WINDOWS 10 ENTERPRISE UPGRADE TECHNOLOGY UPGRADES $20,000 ACTIVITY CENTER SECURITY SYSTEM UPGRADE TECHNOLOGY UPGRADES $62,624 ACTIVITY CENTER A/V REPLACEMENT & UPGRADE FIRE $8,700 WORKOUT EQUIPMENT - TREADMILL POLICE PATROL VEHICLES $161,100 MARKED PATROL VEHICLES (7) POLICE PATROL VEHICLES $57,000 SERGEANT'S VEHICLE POLICE PATROL VEHICLES $53,700 PSO/PARKING ENFORCEMENT VEHICLE TECHNOLOGY UPGRADES $22,000 PD - NETWORK SERVER PUBLIC WORKS: PARKS/FORESTRY $50,000 RIDING MOWERS (2) TOTAL $554,199 Items in the City’s Equipment Replacement Plan include a jet vactor used by the sewer department and a telesquirt fire truck. 53 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS General Fund Property tax revenue is the amount needed to fill the gap between budgeted revenues and appropriations. The average increase in levy for the general fund for years 2021 through 2025 is projected to be 4.67%, however City Council will continue to review these projections throughout the year. This projection reflects an appropriation increase of 2.53% for 2021 and an average increase for years 2021-2025 of 4.00%. The actual amount for any particular year may be reduced through appropriation cuts or new revenue sources. The city’s reliance on support from the state has significantly decreased over the years as the state faced its budget challenges and reduced local support. At one time taxes were less than 70% of total revenues. They now comprise 82%. The city now uses a conservative estimate for state support while budgeting. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. Due to recent economic development Hopkins saw taxable market value increase by 6.75% in the current tax year. The city continues to work with developers on several redevelopment projects that will contribute to the increase in the tax base despite what current market trends indicate. Therefore Hopkins tax base will most likely see an overall increase in the next few years. Franchise fees – The City implemented an electric and gas utility franchise fee in 2004 to help offset the amount of tax levy needed to fund general operations. The franchise fee has an optional sunset clause after two years but has been renewed for two additional years in 2007, 2009, 2011 and for five years in 2013 and 2018. The franchise fee is set to expire December 31, 2023 and staff most likely will recommend its renewal as this source of income has become an important component of the budget. Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax 12,564,305$ 12,893,552$ 13,700,238$ 14,464,679$ 15,335,235$ 16,060,589$ Intergovernmental Revenues 1,352,946 1,474,671 1,330,422 1,336,726 1,143,093 1,149,093 License, Permits and Fines 777,865 786,815 799,825 807,823 815,901 824,060 Charges for Current Services 251,050 228,550 256,096 258,657 261,244 263,856 Other Revenue 119,350 71,050 121,447 122,512 123,587 124,673 Franchise Fee 296,200 296,200 296,200 296,200 296,200 269,200 Total Revenues 15,361,716 15,750,838 16,504,228 17,286,597 17,975,260 18,691,471 Current Expenses Salaries and Employee Benefits 11,575,233 12,048,497 12,630,437 13,260,654 13,791,080 14,342,723 Materials, Supplies and Services 3,747,933 3,657,491 3,803,791 3,955,943 4,114,180 4,278,748 Capital outlay 18,550 24,850 50,000 50,000 50,000 50,000 Transfer Out 20,000 20,000 20,000 20,000 20,000 20,000 Total Expenditures 15,361,716 15,750,838 16,504,228 17,286,597 17,975,260 18,691,471 Change in Fund Balance - - - - - - Fund Balance 5,852,287$ 5,852,287$ 5,852,287$ 5,852,287$ 5,852,287$ 5,852,287$ Projected 54 CITY OF HOPKINS Intergovernmental revenue received by the City include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. The City of Hopkins receives less than 10% of its budget from state grants and programs. The revenue we do receive is derived from fees on services to the public – police & fire aid is from fees on insurance policies purchased by individuals and companies, municipal state aid is derived from gas tax. Both these sources remain stable. The State of Minnesota will also provide Hopkins with about $850,000 in Local Government Aid. This funding source was eliminated in by Minnesota from 2004 to 2013, it was reinstated in 2014 and saw sizeable increase between 2020 and 2021. Licenses, permits and fines include building permits are dependent on new construction and remodeling projects. Based on projected new construction projects, historical information and economic conditions revenues are expected to increase slightly from the 2020 to 2021 budget with revenues continuing to show small increases in the following years as. Fine revenue continues to be stable. Unless a developer’s commercial project has funding it is the City’s practice to not budget for those amounts. Various programs throughout the City generate charges for services and a significant portion of this line item is plan review, housing inspection fees and vacant property registrations. Charges are usually increased by an inflationary rate but due to timing of projected development and the resulting plan review fees we expect to see a slight increase for the 2021 budget. Future projections are to forecast an increase of 1% annually. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $15,750,838 and an appropriation budget of the same. The increase in appropriations over 2020 is $389,122 or 2.53%. The budget was prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. In 2021 the general fund expenditure budget was increased for projected cost of living increases for unsettled union contracts, step increases for eligible employees, increased health insurance premiums and equipment charges. The increases are offset by reductions of 0.5 FTE reduction to staffing due to position changes within the Public Works Department and various reductions for crack sealing, pole painting and tree re-planting. The council attempts to balance maintaining the current level of services while meeting the increasing needs of the public. An emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff implemented a long-rage financial management plan for 2014 that provides funding for future needs. The plan includes staffing, operational and capital needs and sets forth funding mechanism to meet those expenditures. This plan played a key role in developing the 2021 budget for all city funds. Staff also continues to explore ways to contain costs and develop new revenue sources so that we can maintain the quality of life Hopkins residents have come to expect. 55 CITY OF HOPKINS The chart above shows the 2021 approved budget and projected budgets from 2021 through 2025. The general fund tax levy rises in proportion to general fund expenditures. Currently Hopkins relies on its property taxes as its major source of revenue. In fact property taxes account for 82% of General Fund revenues. 56 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department 2021 Mayor & Council Alan Beck, Rick Brausen, Mayor Jason Gadd, Kristi Halverson, Brian Hunke Budget 2018 2019 2020 2021 Actual Actual Budget Budget Change Council $ 109,970 $ 108,214 $ 97,630 $ 102,095 $ 4,465 4.57% Administrative Services 706,736 800,003 855,056 866,312 11,256 1.32% Finance 317,016 417,350 400,476 426,277 25,801 6.44% Legal 279,372 260,493 175,000 200,000 25,000 14.29% Municipal Building 360,502 380,305 398,472 390,560 (7,912)-1.99% Community Services 1,151,122 1,151,800 1,329,162 1,302,163 (26,999)-2.03% Police 5,492,397 5,673,970 5,977,172 6,242,455 265,283 4.44% Fire 1,433,909 1,594,600 1,483,100 1,566,528 83,428 5.63% Public Works 2,849,193 2,999,450 3,442,841 3,469,191 26,350 0.77% Recreation 671,030 758,341 783,082 748,136 (34,946)-4.46% Planning & Economic Dev. 234,710 148,417 222,370 233,000 10,630 4.78% Community Development 92,769 103,475 108,155 114,921 6,766 6.26% Unallocated 27,926 51,738 89,200 89,200 - 0.00% TOTAL $13,726,652 $14,448,156 $15,361,716 $15,750,838 $ 389,122 2.53% $ Amount Change 57 CITY OF HOPKINS Budget Projections – Other Major Funds The City also prepares budget projections for its budgeted major funds which include the following: Special Revenue Funds – Economic Development, Arts Center Enterprise Funds – Water, Sewer, Storm Sewer The main source of revenue for the Economic Development Fund is a special development tax levy based on a percentage of the market value. Hopkins market value has increased each year since 2011 allowing Hopkins to increase this levy in each of those years. Funds are used for development efforts by the City and to provide assistance to developers. Intergovernmental revenues in the form of grants from the County or Metropolitan Council and are applied for when there are specific needs by a developer for site remediation in order to make a project viable. In the past the City has been successful at obtaining these grants on behalf of developers which has assisted in a number of recent projects which in turn adds to the tax base. Economic Development Fund Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax 442,951$ 478,070$ 487,631$ 497,384$ 507,332$ 517,478$ Intergovernmental Revenues - - - - - - Other Revenue 25,000 25,000 25,000 25,000 25,000 25,000 Total Revenues 467,951 503,070 512,631 522,384 532,332 542,478 Current Expenses Salaries and Employee Benefits 249,160 266,469 277,128 285,442 294,005 302,825 Materials, Supplies and Services 151,185 172,431 274,155 176,897 278,666 181,452 Transfers Out 30,000 60,000 30,000 30,000 30,000 30,000 Total Expenditures 430,345 498,900 581,283 492,338 602,671 514,277 Change in Fund Balance 37,606 4,170 (68,652) 30,046 (70,339) 28,201 Fund Balance 4,342,764$ 4,346,934$ 4,278,282$ 4,308,328$ 4,237,989$ 4,266,190$ Projected New development located near the future Blake Road light rail transit station. 58 CITY OF HOPKINS The Hopkins Center for the Arts “Arts Center” was built in 1997 with funds from the City, the State of Minnesota as well as contributions from corporations, foundations, local civic organizations, businesses and individuals. The Arts Center is owned by the City of Hopkins and has a major tenant in Stages Theater Company (children’s theater) and Hopkins School District 270. While ticket sales and lease rent provide a significant income stream it has not always been sufficient to meet expenditures and as a result the fund has a large deficit. Over the last five years various changes in operations has resulted in some success at reducing the deficit, however it has not been sufficient to totally eliminate the negative position. As part of the City’s long-range financial management plan staff and council emphasized that the negative position must be eliminated. As a result the City implemented a tax levy for 2015 that will keep the fund from increasing the deficit. The City is considering many options to eliminate the deficit including donations, naming rights, tax levy support or transfers from other funds. In addition, Arts Center staff has been reorganized and additional efforts have been made to rent and lease the various available spaces to the extent possible. Arts staff has also been successful at obtaining grants for programming from the MN Arts Boards which help underwrite the cost of hiring performance artists. Expenditures are expected to increase 3.75% a year to keep up with inflation. In addition to operational expenditures the Arts Center due to its age has several capital needs over the next couple of years that add to its budget challenges. The Arts Center has a partner in their fund raising efforts through the Friends of the Hopkins Center for the Arts, a 501(c)3 nonprofit that raises funds to support arts programming at the Center, coordinates volunteer efforts and fosters public awareness of the Center. Arts Center Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax 325,225$ 331,182$ 355,382$ 366,044$ 377,025$ 388,336$ Intergovernmental Revenues 87,000 35,000 35,350 35,704 36,061 36,421 Charges for Current Services 622,911 615,477 621,632 627,848 634,127 640,468 Other Revenue 80,000 80,000 80,800 81,608 82,424 83,248 Transfers In 70,700 22,500 80,000 80,000 80,000 80,000 Total Revenues 1,185,836 1,084,159 1,173,164 1,191,204 1,209,636 1,228,473 Current Expenses Salaries and Employee Benefits 524,917 514,754 534,057 554,084 574,863 596,420 Materials, Supplies and Services 494,219 453,405 470,408 488,048 506,350 525,338 Capital Outlay 106,700 56,000 50,000 150,000 - - Total Expenditures 1,125,836 1,024,159 1,054,465 1,192,132 1,081,212 1,121,758 Change in Fund Balance 60,000 60,000 118,699 (929) 128,424 106,715 Fund Balance (1,096,077)$ (1,036,077)$ (917,377)$ (918,306)$ (789,882)$ (683,167)$ Projected 59 CITY OF HOPKINS Water utility rates were increased by approximately 2.0% in 2021 to continue to cover capital and replacement costs. Operating costs are projected to increase by approximately 5.20% on average over the next 4 years. Budgeted transfers are for the water funds share of street improvement projects. Sewer treatment costs to the Metropolitan Council, a regional sewer treatment system are 55% of the expenditures of the sewer fund. The Met Council charges municipalities a percentage of their annual budget based on individual cities water flow. This charge can fluctuate based on water used in Hopkins versus the entire region although our percentage has stayed constant the last few years. The variable factor is the Met Council budget. Sanitary sewer charges to customers were increased by 2.0% in 2021 to continue to pay for capital and replacement costs. Budgeted transfers are for the sewer funds share of street improvement projects. Water Fund Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Utility Charges 2,111,004$ 2,147,074$ 2,297,369$ 2,458,185$ 2,630,258$ 2,814,376$ Other Revenue 145,000 145,000 147,900$ 150,858$ 153,875$ 156,953$ Total Revenues 2,256,004 2,292,074 2,445,269 2,609,043 2,784,133 2,971,329 Current Expenses Salaries and Employee Benefits 527,890 494,922 514,719 530,160 546,065 562,447 Materials, Supplies and Services 1,026,770 1,042,899 1,084,615 1,128,000 1,161,840 1,196,695 Depreciation 325,000 325,000 325,000 325,000 325,000 325,000 Debt Service Payments 78,100 49,953 156,200 287,250 293,900 299,600 Transfer Out 277,339 285,900 299,042 305,022 305,022 305,022 Total Expenditures 2,235,099 2,198,674 2,379,576 2,575,432 2,631,827 2,688,764 Net Income 20,905 93,400 65,693 33,611 152,306 282,565 Projected Sewer Fund Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Utility Charges 3,052,340$ 3,105,587$ 3,260,866$ 3,423,909$ 3,595,105$ 3,774,860$ Other Revenue - - 1,200 1,200 1,200 1,200 Total Revenues 3,052,340 3,105,587 3,262,066 3,425,109 3,596,305 3,776,060 Current Expenses Salaries and Employee Benefits 287,673 266,803 277,475 285,799 294,373 303,205 Materials, Supplies and Services 2,102,297 2,058,038 2,140,360 2,225,974 2,292,753 2,361,536 Depreciation 310,000 346,368 215,000 215,000 215,000 215,000 Debt Service Payments 73,621 52,527 71,400 76,800 185,220 189,900 Transfer Out 252,150 239,500 255,632 260,475 260,475 260,475 Total Expenditures 3,025,741 2,963,236 2,959,867 3,064,048 3,247,821 3,330,115 Net Income 26,599 142,351 302,200 361,061 348,483 445,945 Projected 60 CITY OF HOPKINS The storm sewer fund has not had to raise rates since 2009 due to its strong financial position and there are currently no plans to raise them in the near future. Expenditures continue to be stable with no significant maintenance projects planned for 2020. Budgeted transfers are for the storm sewer funds share street improvement projects. The Hopkins Pavilion is an arena used year-round for a multitude of activities including ice skating, broomball, soccer, lacrosse, inline skating, rugby and other community or private events. Charges for services are the largest revenue source and come primarily from ice rental. The facility was renovated in 2018 with funds from the City, local school district and a local youth hockey organization. The City’s property tax levy is being used to pay the debt service for its contribution. Operating costs are projected to increase by approximately 0.79% on average over the next 4 years. Storm Sewer Fund Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Utility Charges 785,332$ 779,332$ 810,505$ 834,820$ 859,865$ 885,661$ Other Revenue 8,200 10,000 8,200 8,200 8,200 8,200 Total Revenues 793,532 789,332 818,705 843,020 868,065 893,861 Current Expenses Salaries and Employee Benefits 75,604 81,048 84,290 86,819 89,423 92,106 Materials, Supplies and Services 40,100 47,400 49,296 51,268 52,806 54,390 Depreciation 275,000 300,804 250,000 250,000 250,000 250,000 Debt Service Payments 56,300 12,154 82,400 186,100 105,880 110,500 Transfer Out 174,940 155,563 210,937 215,156 215,156 215,156 Total Expenditures 621,944 596,969 676,923 789,342 713,265 722,152 Net Income 171,588 192,363 141,782 53,678 154,800 171,709 Projected Pavilion Fund Approved 2020 2021 2022 2023 2024 2025 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax 300,000$ 340,000$ 300,000$ 300,000$ 300,000$ 300,000$ Charges for Current Services 477,000 479,000 488,580 493,466 498,400 503,384 Other Revenue 4,500 4,500 4,500 4,500 4,500 4,500 Total Revenues 781,500 823,500 793,080 797,966 802,900 807,884 Current Expenses Salaries and Employee Benefits 346,452 361,481 375,940 387,218 398,834 410,799 Materials, Supplies and Services 149,283 165,479 167,134 168,805 170,493 172,198 Depreciation 100,000 480,000 480,000 480,000 480,000 480,000 Capital 6,500 - - - - - Debt Service Payments 100,021 91,400 88,050 82,275 76,350 70,275 Total Expenditures 702,256 1,098,360 1,111,124 1,118,298 1,125,678 1,133,273 Net Income 79,244 (274,860) (318,044) (320,332) (322,777) (325,388) Projected 61 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Property Taxes $10,537,230 $11,712,174 $12,564,305 $12,893,552 2.62% Intergovernmental Revenue 569,529 577,088 734,946 853,671 16.15% Interest earnings (2,620)7,328 15,000 15,000 Franchise Fees 313,571 304,668 296,200 296,200 Miscellaneous 8,250 21,866 250 250 11,425,960 12,623,125 13,610,701 14,058,673 3.29% Expenditures Materials, Supplies and Services Operations 12,701 31,738 69,200 69,200 Operating Transfers Transfer from other funds -- -- Transfer to other funds 15,000 20,000 20,000 20,000 27,701 51,738 89,200 89,200 Indirectly Funded Amount 11,398,259 12,571,387 13,521,501 13,969,473 3.31% FUNCTION: UNALLOCATED Revenues and Expenditures 62 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Unallocated PROGRAM: Unallocated PROGRAM SUMMARY: The purpose of the unallocated program of the General Fund is to provide budget for unforeseen or unusual expenditures that may occur in a given year. The revenues recorded here are revenues that are not directly associated with another program within the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Monitor tax collections 2. Monitor franchise fee structure 3. Maximize investment earnings FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Property Taxes $ 11,712,174 $ 12,564,305 $ 12,883,552 2.54% Intergovernmental 577,088 734,946 853,671 16.15% Interest Earnings 12,053 15,000 15,000 0.00% Franchise Fee 304,668 296,200 296,200 0.00% Miscellaneous 17,141 250 10,250 4000.00% Total Revenues 12,623,125 13,610,701 14,058,673 3.29% EXPENDITURES: Other Services & Charges 31,738 69,200 69,200 0.00% Operating Transfer 20,000 20,000 20,000 0.00% Total Expenditures 51,738 89,200 89,200 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 12,571,387 $ 13,521,501 $ 13,969,473 3.31% Property Taxes Intergovernmental Franchise Fees Interest Earnings MIscellaneous 2021 Budgeted General Fund Revenues 63 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Expenditures Salaries, Wages and Benefits Salaries and Wages 38,442 41,820 39,639 42,000 5.96% Fringe Benefits 3,751 3,346 3,033 3,345 10.29% Materials, Supplies and Services Professional & Technical Services 1,520 2,810 1,000 1,000 Operations 54,998 56,346 50,012 52,125 4.23% Supplies and Materials 11,261 3,892 3,946 3,625 -8.13% Total Expenditures 109,971 108,214 97,630 102,095 4.57% Indirectly Funded Amount 109,971 108,214 97,630 102,095 4.57% The City Council Department accounts for the expenses of the mayor and council. Revenues and Expenditures FUNCTION: CITY COUNCIL 64 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administration PROGRAM: Council Administration PROGRAM SUMMARY: The Council Administration program of the Council Department establishes city policies, goals and objectives. It approves the budget and monitors the activities of the City Manager and City Attorney. The council also appoints members to boards and commissions. The City Council holds regular meetings and work sessions, receives input from staff, citizens and other interested parties. The Council controls policy through changes in the City Code and Legislative Policies. They control spending through their review nd approval of the City budget and various contracts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Work across all city departments and the community to implement the current Goals and Strategic Plan: (1) Preserve the Home Town Feel of Hopkins, (2) Urban Design: Do It Right, and (3) Take it to Them (community engagement) 1. Promote city marketing efforts 2. Safely host 2021 Resident’s Academy 3. Publish 2021/21 City Annual Report 4. Safely host 2021 State of the City event FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 45,166 $ 39,639 $ 45,345 14.39% Other Services & Charges 63,048 57,991 56,750 -2.14% $ 108,214 $ 97,630 $ 102,095 NET TAX AND GENERAL REVENUE SUPPORTED $ 108,214 $ 97,630 $ 102,095 4.57% PERSONNEL: Number of FTE positions PERFORMANCE MEASURSES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Residents Represented 19,713 19,555 20,100 20,190 Number of Council Meetings/Worksessions 33 36 30 35 Estimated City Market Value (in billions) $1.987 $2.211 $2.345 $2.450 General Fund Budget overseen $13,435,355 $14,410,478 $15,361,716 $15,750,838 Total All Budgeted Funds $29,347,598 $32,958,228 $34,153,019 $36,243,675 65 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Expenditures Salaries, Wages and Benefits Salaries and Wages $500,126 $539,997 $573,408 $601,239 4.85% Fringe Benefits 148,900 175,768 205,090 189,993 -7.36% Materials, Supplies and Services Professional & Technical Services 33,228 36,638 36,450 35,600 -2.33% Utilities and Maintenance 13,187 17,865 18,213 17,963 -1.37% Operations 103,175 118,752 155,766 155,472 -0.19% City Support Services 2,571 2,848 2,975 3,240 8.91% Supplies and Materials 9,549 9,938 12,000 11,650 -2.92% Total Expenditures 810,736 901,807 1,003,902 1,015,157 1.12% Reimbursed Expenditures (104,000) (104,000) (148,845) (148,845) 0.00% Net Total Expenditures 706,736 797,807 855,057 866,312 1.32% Indirectly Funded Amount 706,736 797,807 855,057 866,312 1.32% The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services FUNCTION: ADMINISTRATIVE SERVICES Revenues and Expenditures 66 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Administration PROGRAM SUMMARY: The Administration program of the Administrative Services Department provides leadership and support to all city programs and operations. Administration controls and directs the City’s affairs. It responds to citizen concerns and participates in affiliated organizations. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 286,263 $ 327,464 $ 318,666 -2.69% Other Services & Charges 33,447 43,345 44,366 2.36% Reimbursed Expenditures (66,000) (66,000) (66,000) 0.00% $ 253,710 $ 304,809 $ 297,032 NET TAX AND GENERAL REVENUE SUPPORTED $ 253,710 $ 304,809 $ 297,032 -2.55% PERSONNEL: Number of FTE positions 1.55 1.55 2.10 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Encourage innovative, creative thinking and inform the City Council and community of new programs and activities. 2. Develop leadership team to ensure the city’s long term viability through an engaged and empowered workforce. 3. Continue to operate and enhance the employee engagement & wellness program. 4. Increase ways for community engagement. 5. Prepare a legislative agenda, monitor legislative issues, and lobby on issues affecting the City PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Number of “Ask the City” submissions 67 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Personnel PROGRAM SUMMARY: Personnel provides human resource support for departments and employees. This includes coordination of staff recruitment, coordination of employee benefit programs and conducting employee relations’ activities for all City employees. Another aspect of this program is ensuring compliance with state, federal and local laws regarding employment. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 57,646 $ 65,067 $ 69,927 7.47% Other Services & Charges 12,824 20,547 19,208 -6.52% Reimbursed Expenditures (16,000) (16,000) (16,000) 0.00% $ 54,470 $ 69,614 $ 73,135 NET TAX AND GENERAL REVENUE SUPPORTED $ 54,470 $ 69,614 $ 73,135 5.06% PERSONNEL: Number of FTE positions 0.4 0.4 0.4 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Successfully negotiate union contracts beginning on 1/1/2021 2. Successfully engage new employees. 3. Assist the City Manager with staff development opportunities. PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Full-time Employees 118 117 118 115 Full-time Employees hired 12 7 3 N/A 68 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Wellness PROGRAM SUMMARY: The Wellness program of the Administrative Services Department provides support and activities to encourage overall general good health of city employees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 2, Strategy 3 – Healthy City Initiatives: 1. Continue to provide healthy guidance to employees. 2. Support the Employee Engagement & Wellness Committee 3. Provide wellness events and opportunities for employees FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Other Services & Charges 2,584 2,950 2,250 -23.73% NET TAX AND GENERAL REVENUE SUPPORTED $ 2,584 $ 2,950 $ 2,250 -23.73% PERSONNEL: Number of FTE positions 0 0 0 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Number of Employee Wellness/Education Events Not Available 5 1 5 69 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Information Technology PROGRAM SUMMARY: The Information Services program of the Administrative Services Department provides all network hardware and software support for the City. It also provides individual city employees with hardware and software support. The internal web site is designed and maintained through this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to provide assistance getting systems in place to allow employees to work from home 2. Continue to provide assistance getting systems in place to allow residents to easily access online information and communications 3. Work on developing IT financial forecast FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 371,840 $ 385,969 $ 402,639 4.32% Other Services & Charges 137,187 158,560 158,101 -0.29% Reimbursed Expenditures (22,000) (66,845) (66,845) 0.00% $ 487,027 $ 477,684 $ 493,896 NET TAX AND GENERAL REVENUE SUPPORTED $ 487,027 $ 477,684 $ 493,896 3.39% PERSONNEL: Number of FTE positions 3.1 3.1 3.1 70 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Charges for Service $5,854 $3,693 $5,500 $5,500 Miscellaneous 3,101 5,208 1,200 2,000 66.67% 8,955 8,901 6,700 7,500 11.94% Expenditures Salaries, Wages and Benefits Salaries and Wages 311,020 339,616 360,532 383,226 6.29% Fringe Benefits 102,378 118,982 129,533 143,362 10.68% Materials, Supplies and Services Professional & Technical Services 88,777 146,285 77,750 85,950 10.55% Utilities and Maintenance 259 328 12,150 6,625 -45.47% Operations 14,143 13,070 24,350 19,275 -20.84% City Support Services 1,875 1,986 2,119 2,306 8.82% Supplies and Materials 5,938 4,462 5,100 3,700 -27.45% Capital Outlay Equipment Allocation - - - - Total Expenditures 524,390 624,730 611,534 644,444 5.38% Reimbursed Expenditures (211,058) (211,059) (211,058) (218,167) 3.37% Net Total Expenditures 313,332 413,671 400,476 426,277 6.44% Indirectly Funded Amount 304,377 404,770 393,776 418,777 -5% The Finance department consists of five programs. They are Debt Management, General Accounting, Payroll, Tax Increment Financing Administration and Utility Billing. FUNCTION: FINANCE Revenues and Expenditures In January 2014 the City was upgraded to a AA+credit rating by Standard &Poor’s. A certificate recognizing this achievement was presented to the City by the City’s financial advisors. The AA+ rating was reaffirmed for each of the bond issues sold in 2020. 71 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Debt PROGRAM SUMMARY: The Debt program of the Finance Department issues, records and maintains debt for the City of Hopkins and the Hopkins Housing and Redevelopment Authority. Debt is issued in accordance with state statute and city charter. Debt is maintained at a manageable level for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Maintain the current bond rating of AA+ through conservative financial management and accurate reporting of financial and economic conditions of the city. 2. Project future debt needs and ability. 3. Prepare documents and work with financial advisors for 2021 bond issue. 4. Analyze possibilities of debt refunding(s). 5. Prepare annual debt reporting for county as required by state statutes FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 14,531 $ 15,215 $ 16,416 7.89% Other Services & Charges 1,538 1,741 1,795 3.10% Reimbursed Expenditures (15,118) (15,118) (17,921) 18.54% $ 951 $ 1,838 $ 290 NET TAX AND GENERAL REVENUE SUPPORTED $ 951 $ 1,838 $ 290 -84.21% PERSONNEL: Number of FTE positions 0.1 0.1 0.1 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Standard & Poors credit rating AA+ AA+ AA+ AA+ Vendor checks issued 4,619 4,724 4,230 4,500 Receipts Processed 33,599 30,877 29,578 30,000 Utility accounts serviced 3,603 3,615 3,591 3,595 Date of audit opinion (target June 15) June 20 July 23 June 15 June 15 GFOA CAFR Award Yes Yes Yes Yes GFOA Budget Award Yes Yes Yes Yes 72 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance DEPARTMENT: Accounting PROGRAM SUMMARY: The Accounting program of the Finance Department provides financial management for the City and the Housing and Redevelopment Authority. It provides support services to other departments in the City through initiating fiscal plans, implementation and control of those plans, accounting and analysis of transactions. Accounting manages the city’s day-to-day accounting transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The program prepares monthly and quarterly financial statements and compiles the year-end comprehensive financial report. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Miscellaneous $ 8,481 $ 1,700 $ 2,500 47.06% EXPENDITURES: Personnel Services $ 228,686 $ 244,144 $ 261,399 7.07% Other Services & Charges 85,344 55,859 59,278 6.12% Reimbursed Expenditures (64,000) (64,000) (64,000) 0.00% $ 250,030 $ 236,003 $ 256,677 8.76% NET TAX AND GENERAL REVENUE SUPPORTED $ 241,549 $ 234,303 $ 254,177 8.48% PERSONNEL: Number of FTE positions 1.95 1.95 1.95 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Submit CAFR for the GFOA award program. 2. Provide accurate and timely quarterly financial reports. 3. Update the Financial Management Plan 4. Prepare 5-year Capital Improvement Plan. 5. Prepare 20-year Equipment Replacement Plan 73 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Payroll PROGRAM SUMMARY: The Payroll program of the Finance Department completes the biweekly payroll, maintains all payroll records and completes the payroll quarterly reports. It also provides support services to employees regarding payroll issues. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 113,748 $ 124,041 $ 133,584 7.69% Other Services & Charges 13,129 6,808 3,998 -41.27% Reimbursed Expenditures (20,000) (20,000) (20,000) 0.00% $ 106,877 $ 110,849 $ 117,582 NET TAX AND GENERAL REVENUE SUPPORTED $ 106,877 $ 110,849 $ 117,582 6.07% PERSONNEL: Number of FTE positions 1.0 1.0 1.0 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist employees with payroll and benefit issues/questions. 2. Provide accurate and timely payroll and reports. 3. Work with insurance company to manage insurance programs. 4. Prepare benefit open enrollment information and assist employees with questions regarding their benefit options. 5. Provide employee benefit orientations for new hires 74 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Tax Increment Financing (TIF) Administration PROGRAM SUMMARY: The Tax Increment Financing Administration program of the Finance Department records and reports tax increment program activities. It is charged with the responsibility of ensuring compliance with state statutes and guidelines. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 14,531 $ 15,567 $ 16,835 8.15% Other Services & Charges 2,038 4,241 5,120 20.73% Reimbursed Expenditures (16,940) (16,940) (21,246) 25.42% $ (371) $ 2,868 $ 709 NET TAX AND GENERAL REVENUE SUPPORTED $ (371) $ 2,868 $ 709 -- PERSONNEL: Number of FTE positions 0.1 0.1 0.1 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue analysis of Tax Increment Financing funds. 2. Assist with implementation of new TIF districts. 3. Prepare annual Office of the State Auditor reports FUNCTION: Finance PROGRAM: Utility Billing PROGRAM SUMMARY: The Utility Billing program of the Finance Department prepares and issues monthly utility bills for collection of utility service fees from its customers. Utility records are maintained and updated within this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist customers with utility billing issues and questions – change of service, change of ownership, etc. 2. Promote automatic payment options to increase usage of automatic payment. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ 420 $ 5,000 $ 5,000 0.00% EXPENDITURES: Personnel Services $ 87,102 $ 91,098 $ 98,353 7.96% Other Services & Charges 64,083 52,819 47,665 -9.76% Reimbursed Expenditures (95,000) (95,000) (95,000) 0.00% $ 56,185 $ 48,917 $ 51,018 4.29% NET TAX AND GENERAL REVENUE SUPPORTED $ 55,765 $ 43,917 $ 46,018 -- PERSONNEL: Number of FTE positions 0.85 0.85 0.85 75 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Court Fines $ 138,688 $ 122,200 $ 126,250 $ 125,000 -0.99% Expenditures Materials, Supplies and Services Professional & Technical Services 279,372 260,493 175,000 200,000 14.29% Total Expenditures 279,372 260,493 175,000 200,000 14.29% Indirectly Funded Amount 140,684 138,292 48,750 75,000 53.85% The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. FUNCTION: LEGAL Revenues and Expenditures $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 2015 2016 2017 2018 2019 City Legal Costs Legal Service Prosecution 76 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administration PROGRAM: Legal PROGRAM SUMMARY: The Legal department represents the City in court, at City Council meetings and direct contact with staff and the general public. The firm of Kennedy & Graven is retained on a fee per hour basis. They respond to legal summons and/or initiate action on behalf of the City. Written and oral inquiries are made by staff, council, citizens and other interested parties. The city engages other law firms when necessary. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City 4. Assist City staff with development projects FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Court Fines $ 122,200 $ 126,250 $ 125,000 -0.99% EXPENDITURES: Other Services & Charges $ 260,493 $ 175,000 $ 200,000 14.29% NET TAX AND GENERAL REVENUE SUPPORTED $ 138,292 $ 48,750 $ 75,000 53.85% PERSONNEL: The City contracts with a legal firm to represent the City. 77 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Miscellaneous $3,500 $12,725 $ -$ - Expenditures Salaries, Wages and Benefits Salaries and Wages 116,946 110,167 128,093 135,567 5.83% Fringe Benefits 45,711 43,883 55,252 54,751 -0.91% - Materials, Supplies and Services Professional & Technical Services 47,905 59,461 47,775 46,330 -3.02% Utilities and Maintenance 145,736 166,808 159,400 146,910 -7.84% Operations 2,638 3,045 3,325 2,355 -29.17% City Support Services 21,134 20,804 23,697 23,562 -0.57% Supplies and Materials 13,247 8,949 18,450 13,085 -29.08% Capital Outlay Office Furniture and Equipment - - - - Total Expenditures 393,316 413,119 435,992 422,560 -3.08% Reimbursed Expenditures (32,814) (32,814) (32,000) (32,000) Net Total Expenditures 360,502 380,305 403,992 390,560 -3.32% Indirectly Funded Amount 357,002 367,580 403,992 390,560 -3.32% The Municipal Building Department consists of building maintenace. FUNCTION: MUNICIPAL BUILDING Revenues and Expenditures 78 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Building Maintenance PROGRAM: Maintenance – Municipal Buildings PROGRAM SUMMARY: The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Municipal Budget covers City Hall and the Police Department. In house maintenance personnel and contractual custodial services maintain these buildings and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Maintain City Hall to assure a safe and comfortable environment for Residents and City employees at the lowest cost 2. Continue Green Initiatives within City Hall. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Miscellaneous $ 12,725 $ - $ - 0.00% EXPENDITURES: Personnel Services $ 154,051 $ 183,345 $ 190,318 3.80% Other Services & Charges 259,068 252,647 232,242 -8.08% Capital Outlay - - Reimbursed Expenditures (32,814) (32,000) (32,000) 0.00% $ 380,305 $ 403,992 $ 390,560 -3.32% NET TAX AND GENERAL REVENUE SUPPORTED $ 367,580 $ 403,992 $ 390,560 -3.32% PERSONNEL: Number of FTE positions 1.45 1.45 1.45 79 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Licenses $24,110 $22,440 $15,500 $15,500 Permits 575,436 684,955 450,000 468,000 4.00% Penalties 13,800 18,275 8,000 6,000 Current Services 166,544 245,239 109,200 107,200 -1.83% Total Revenues 779,890 970,909 582,700 596,700 2.40% Expenditures Salaries, Wages and Benefits Salaries and Wages 688,058 675,367 779,901 762,058 -2.29% Fringe Benefits 233,688 229,079 263,459 257,985 -2.08% Materials, Supplies and Services Professional & Technical Services 197,110 222,711 209,430 224,530 7.21% Utilities and Maintenance 8,405 7,587 15,315 15,505 1.24% Operations 33,440 19,818 47,410 34,650 -26.91% City Support Services 43,324 43,700 47,957 49,275 2.75% Supplies and Materials 8,311 9,763 16,320 14,310 -12.32% Capital Outlay Equipment Allocation -4,775 4,850 4,850 Total Expenditures 1,212,336 1,212,800 1,384,642 1,363,163 -1.55% Reimbursed Expenditures (61,000) (61,000) (61,000) (61,000) Net Total Expenditures 1,151,336 1,151,800 1,323,642 1,302,163 -1.62% Indirectly Funded Amount 371,446 180,891 740,942 705,463 -4.79% The Community Services function is made up of three main programs. They are Assessing, Inspections, and City Clerk. FUNCTION: COMMUNITY SERVICES Revenues and Expenditures 80 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Receptionist PROGRAM SUMMARY: The Receptionist program of the Community Services Department answers calls at main switchboard and route calls to various departments. Directs walk-in customers to the appropriate department. Sales of dog licenses and parking permits occur in this program. Receipts are accepted for payment of building permits and utility bills. The program also provides clerical and secretarial services to other departments. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ (1,577) $ 831 $ - -100.00% Other Services & Charges 214 234 - -100.00% $ (1,363) $ 1,065 $ - NET TAX AND GENERAL REVENUE SUPPORTED $ (1,363) $ 1,065 $ - -100.00% PERSONNEL: Number of FTE positions 0 0 0 The FTE allocation was reclassified to administration in 2020. OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. N/A – Program Combined with Administration Department 81 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Assessing PROGRAM SUMMARY: The Assessing Department assists property owners with Homestead classification and works with Hennepin County on property valuations. The department also prepares special assessment rolls and responds to property owner concerns and questions. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ - $ 3,000 $ 3,000 0.00% EXPENDITURES: Personnel Services $ 78,301 $ 92,554 $ 107,455 16.10% Other Services & Charges 158,182 153,268 162,464 6.00% Reimbursed Expenditures (24,000) (24,000) (24,000) 0.00% $ 212,483 $ 221,822 $ 245,919 10.86% NET TAX AND GENERAL REVENUE SUPPORTED $ 212,483 $ 218,822 $ 242,919 11.01% PERSONNEL: Number of FTE positions 1.05 1.05 1.05 OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Prepare special assessment rolls for certification on taxes. 2. Assist property owners with property related issues. 3. Maintain the Property and Contact Information in the Springbrook Financial and Permitworks Software. 82 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: City Clerk PROGRAM SUMMARY: The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business licenses applications are reviewed prior to issuance. The City Clerk is also the purchasing officer of the city. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ 9,185 $ 7,000 $ 7,000 0.00% EXPENDITURES: Personnel Services $ 90,266 $ 99,169 $ 105,683 6.57% Other Services & Charges 19,006 42,163 25,947 -38.46% Reimbursed Expenditures (37,000) (37,000) (37,000) 0.00% $ 72,272 $ 104,332 $ 94,630 -9.30% NET TAX AND GENERAL REVENUE SUPPORTED $ 63,087 $ 97,332 $ 87,630 -9.97% PERSONNEL: Number of FTE positions 0.75 0.75 0.75 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 2, Strategy 2 – Go Green 1. Purchase “green” or recycled products when available if the pricing is competitive and product meets quality standards. 2. Ensure that the City Document Archives section of the City’s website contains the most up to date information in all areas listed. 3. Review and update where needed applications and forms that are available on the Web site. PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Registered voters 11,666 10,909 12,613 12,500 Voter turnout Absentee voter count 2,343 195 7,511 800 In person voter count 6,198 1,319 3,087 800 Number of Elections & Primaries Held 2 1 3 1 Number of Days Open for Early Voting 43 43 43 43 83 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Elections PROGRAM SUMMARY: The Elections program of the Community Services Department provides supervision of elections, registers voters, and certifies election results. All state and federal legislation is reviewed, judges are trained, and equipment and polling places are prepared. After elections ballots are counted and the results certified to the County and State of Minnesota. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ 28,006 $ - $ - EXPENDITURES: Personnel Services $ 53,272 $ 120,762 $ 70,399 -41.70% Other Services & Charges 8,327 12,409 11,626 -6.31% $ 61,599 $ 133,171 $ 82,025 -38.41% NET TAX AND GENERAL REVENUE SUPPORTED $ 33,594 $ 133,171 $ 82,025 -38.41% PERSONNEL: Number of FTE positions 0.35 0.35 0.35 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Recruit and train additional Election Judges for the early voting, primaries and general election. 2. Work with Hennepin County City to review voting equipment and the possible replacement. 3. Work to better organize information and supplies for Election Judges use on Election Day. 84 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Building Code Inspection PROGRAM SUMMARY: The Building Code Inspection program of the Community Services Department inspects all new or remodeled buildings to insure they meet the minimum requirements of the state building code. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases and an issuance of a certificate of occupancy. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: License, Permits, Charges $ 501,236 $ 271,000 $ 277,000 2.21% EXPENDITURES: Personnel Services $ 254,475 $ 260,131 $ 253,786 -2.44% Other Services & Charges 113,854 108,110 118,869 9.95% $ 368,329 $ 368,241 $ 372,655 1.20% NET TAX AND GENERAL REVENUE SUPPORTED $ (132,906) $ 97,241 $ 95,655 -1.63% PERSONNEL: Number of FTE positions 2.2 2.2 2.2 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Work on closing out aging permits from the past years. 2. Continue utilizing Laserfiche for paperless document retention 3. Review Permit Fees for rate increases 4. Continue to provide excellent customer service especially as 85 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Fire Code Inspection PROGRAM SUMMARY: The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Permits $ 11,003 $ 12,000 $ 9,000 -25.00% EXPENDITURES: Personnel Services $ 47,436 $ 51,735 $ 54,675 5.68% Other Services & Charges 493 541 582 7.58% $ 47,929 $ 52,276 $ 55,257 5.70% NET TAX AND GENERAL REVENUE SUPPORTED $ 36,926 $ 40,276 $ 46,257 14.85% PERSONNEL: Number of FTE positions 1.00 1.00 1.00 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue the fire prevention inspection program. 2. Implement new fire code software. 86 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Heating and Plumbing Code Inspection PROGRAM SUMMARY: The Heating and Plumbing Code Inspection program of the Community Services Department inspects new and remodeled buildings for heating and plumbing compliance. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases. Become familiar with new gas, mechanical and energy code. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Permits $ 180,370 $ 88,000 $ 88,000 0.00% EXPENDITURES: Personnel Services $ 117,718 $ 117,366 $ 118,272 0.77% Other Services & Charges 1,335 4,356 4,449 2.13% $ 119,053 $ 121,722 $ 122,721 0.82% NET TAX AND GENERAL REVENUE SUPPORTED $ (61,318) $ 33,722 $ 34,721 2.96% PERSONNEL: Number of FTE positions 1.0 1.0 1.0 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. PermitWorks Training 2. Close Out Aging Permits 3. Look at Updating Permit Fees PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected New Commercial/Industrial Permits - 2 2 Not Available Valuation - 3,273,000 5,138,000 Not Available New Single-Family Home Permits - 5 - - Valuation - 1,725,000 - - New Multiple Family Building Permits - - - 2 Valuation - - - Not Available Fire Permits 49 49 50 50 Total Building Permits 405 506 636 Not Available Valuation 27,785,861 45,193,752 21,124,486 Not Available 87 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Housing Inspection PROGRAM SUMMARY: The Housing Inspection program of the Community Services Department inspects all existing buildings from time to time to insure they are maintained safe in accordance with city housing code. Rental properties are inspected every five years to identify hazards to the occupants and to insure buildings are well maintained and to improve on the city’s housing stock. Homes being sold in the community must be evaluated. A listing of certified evaluators for the Truth in Housing program are maintained. Home sales are monitored to insure compliance. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: License, permits, charges $ 222,960 $ 185,300 $ 200,300 8.09% EXPENDITURES: Personnel Services $ 177,326 $ 203,200 $ 207,972 2.35% Other Services & Charges 6,263 11,152 11,461 2.77% $ 183,589 $ 214,352 $ 219,433 2.37% NET TAX AND GENERAL REVENUE SUPPORTED $ (39,371) $ 29,052 $ 19,133 -34.14% PERSONNEL: Number of FTE positions 1.82 1.82 1.82 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Retain all new rental inspection results on Laserfiche 2. Update Rental Licensing and Inspection Fees 88 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Miscellaneous Community Inspection PROGRAM SUMMARY: The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. Track responses to citizens and results of the complaint. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Citations, charges for service $ 18,150 $ 8,400 $ 6,400 -23.81% EXPENDITURES: Personnel Services $ 84,997 $ 95,029 $ 99,089 4.27% Other Services & Charges 679 6,363 5,522 -13.22% $ 85,675 $ 101,392 $ 104,611 3.17% NET TAX AND GENERAL REVENUE SUPPORTED $ 67,525 $ 92,992 $ 98,211 5.61% PERSONNEL: Number of FTE positions 0.86 0.86 0.86 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue neighborhood sweeps and respond to resident complaints in a prompt and courteous manner. 2. Send out newsletter in spring regarding sweeps potential violations. 89 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Vacant Property Management PROGRAM SUMMARY: The Vacant Property Management program of the Community Services Department FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Property Registrations $ - $ 8,000 $ 6,000 -25.00% EXPENDITURES: Personnel Services $ 2,233 $ 2,584 $ 2,711 4.93% Other Services & Charges - 2,685 2,200 -18.06% $ 2,233 $ 5,269 $ 4,911 -6.79% NET TAX AND GENERAL REVENUE SUPPORTED $ 2,233 $ (2,731) $ (1,089) -60.14% PERSONNEL: Number of FTE positions 0.02 0.02 0.02 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to educate mortgage banks, property managers, realtors and vacant property owners on why we want them to register their property. 2. Send out enforcement letters and billings in a timely manner 90 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Intergovernmental $423,137 $419,812 $330,000 $330,000 Licenses 80,601 95,198 90,300 85,800 -4.98% Court Fines/Forfeitures 18,125 35,740 62,000 62,000 Penalties 570 240 1,500 1,500 Current Service 47,238 27,466 35,000 35,000 Miscellaneous (838)11,709 2,000 500 -75.00% Total Revenues 568,833 590,164 520,800 514,800 -1.15% Expenditures Salaries, Wages and Benefits Salaries and Wages 3,384,756 3,528,343 3,720,519 3,819,295 2.65% Fringe Benefits 1,303,391 1,352,903 1,412,461 1,571,010 11.22% Materials, Supplies and Services Professional & Technical Services 166,570 147,867 180,240 174,615 -3.12% Utilities and Maintenance 126,307 142,477 134,995 155,806 15.42% Operations 149,716 151,629 188,778 186,617 -1.14% City Support Services 186,920 199,846 231,600 227,467 -1.78% Supplies and Materials 122,087 101,287 93,580 92,645 -1.00% Capital Outlay Equipment 26,388 7,790 15,000 15,000 Total Expenditures 5,466,135 5,632,141 5,977,173 6,242,454 4.44% Indirectly Funded Amount 4,897,302 5,041,976 5,456,373 5,727,654 4.97% FUNCTION: POLICE Revenues and Expenditures 91 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Administration PROGRAM SUMMARY: To be recognized as a progressive law enforcement agency, striving to enhance the quality of life for all citizens. We seek to collaborate with all stakeholders to continually improve our community. Hopkins Police Department will recruit, hire, and retain the most qualified personnel to fulfill this vision. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. To provide effective, efficient, and professional police services to the community. 2. Continue to produce the highest ethical standards and transparent police department. 3. Create trust and partnerships with our multi-cultural community. 4. Promote a proactive, problem-solving culture that focuses on crime prevention. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Miscellaneous $ - $ - $ - 0.00% EXPENDITURES: Personnel Services $ 517,129 $ 554,099 $ 615,000 10.99% Other Services & Charges 167,689 194,229 189,625 -2.37% $ 684,818 $ 748,328 $ 804,625 NET TAX AND GENERAL REVENUE SUPPORTED $ 684,818 $ 748,328 $ 804,625 7.52% PERSONNEL: Number of FTE positions 3.1 3.1 2.95 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Calls for Service 26,063 23,996 Not Available Not Available Traffic Stops 6,212 4,929 Not Available Not Available Total Citations 2,187 1,959 Not Available Not Available Motor Vehicle Crashes 584 524 Not Available Not Available Part I Crimes - Felony 423 344 Not Available Not Available Part II Crimes - Non Felony 808 702 Not Available Not Available 92 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Patrol PROGRAM SUMMARY: To provide public safety by reducing crime, enhancing the quality of life for all citizens, while working collaboratively with all stakeholders in the community. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ 5,298 $ 10,200 $ 10,200 0.00% Intergovernmental Revenue 418,912 330,000 330,000 0.00% Fines & Forfeits 35,980 63,500 63,500 0.00% Charges for Service 27,466 25,000 25,000 0.00% Miscellaneous 11,621 1,500 - -100.00% $ 499,277 $ 430,200 $ 428,700 -0.35% EXPENDITURES: Personnel Services $ 3,653,043 $ 3,653,446 $ 3,813,962 4.39% Other Services & Charges 364,749 355,472 345,095 -2.92% Capital Expenditures - - $ 4,017,792 $ 4,008,918 $ 4,159,057 3.75% NET TAX AND GENERAL REVENUE SUPPORTED $ 3,518,515 $ 3,578,718 $ 3,730,357 4.24% PERSONNEL: Number of FTE positions 26.08 26.08 26.88 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Provide the highest level of professional customer service to the public with each and every contact. 2. Create trust and partnerships with our multi-cultural community. 3. Provide proactive criminal enforcement through intelligence-lead policing efforts. 4. Committed to identifying and solving problems through building positive community partnerships 93 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: SWAT Team PROGRAM SUMMARY: The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Miscellaneous $ - $ - $ - 0.00% EXPENDITURES: Personnel Services $ 51,220 $ 48,349 $ 51,070 5.63% Other Services & Charges 23,549 23,847 24,412 2.37% $ 74,769 $ 72,196 $ 75,482 NET TAX AND GENERAL REVENUE SUPPORTED $ 74,769 $ 72,196 $ 75,482 4.55% PERSONNEL: Number of FTE positions 0.35 0.35 0.5 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Committed to the highest level of training standards and performance standards. 2. Build upon strong working relationships with other consortium SWAT members and partners. 3. Continue to be a leader in the consortium of SWAT teams. 4. Continue to prepare for civil unrest while protecting everyone’s civil liberties 94 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTON: Police PROGRAM: Reserves PROGRAM SUMMARY: The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, community-building and outreach efforts. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 15,894 $ 14,310 $ 15,122 5.67% Other Services & Charges 3,191 8,152 8,055 -1.19% $ 19,084 $ 22,462 $ 23,177 NET TAX AND GENERAL REVENUE SUPPORTED $ 19,084 $ 22,462 $ 23,177 3.18% PERSONNEL: Number of FTE positions 0.1 0.1 0.05 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to recruit individuals with diverse backgrounds. 2. Continue to supplement uniformed patrol with calls for service and problem-solving efforts. 3. Utilize Reserves in outreach and in police and community relations. 4. Utilize Reserve personnel whenever feasible to alleviate uniformed patrol calls for service. 95 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTON: Police PROGRAM: Investigations PROGRAM SUMMARY: The Investigations Division of the Police Department conducts thorough criminal investigations on all criminal activity that has occurred in Hopkins, while working with other police agencies to identify suspects and work collaboratively to prevent future crime. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ 85,900 $ 71,600 $ 71,600 0.00% EXPENDITURES: Personnel Services $ 196,043 $ 414,688 $ 440,823 6.30% Other Services & Charges 89,026 115,419 113,835 -1.37% $ 285,069 $ 530,107 $ 554,658 4.63% NET TAX AND GENERAL REVENUE SUPPORTED $ 199,169 $ 458,507 $ 483,058 5.35% PERSONNEL: Number of FTE positions 2.95 2.95 2.45 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue professional development by training officers in the Investigations Division of the Hopkins Police Department. 2. Continue to problem solve and reduce crime through crime analysis and intelligence-lead policing. 3. Work in partnership with other law enforcement agencies to identify crime trends and patterns on a local and regional level. 4. Continue to work in partnership with all divisions within the Police Department. 5. Continue to work in partnership with the County Attorney’s Office to successfully prosecute individuals involved in criminal behavior. 96 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Southwest Hennepin Drug Task Force PROGRAM SUMMARY: The Southwest Hennepin Drug Task Force is a multi-jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance, and other covert activities. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to work jointly with the Criminal Investigations Unit to identify suspects engaged in criminal activity. 2. Work with all divisions of the Police Department and communicate current crime trends and/or possible suspects residing in the City. 3. Continue to work nuisance property and crime free multi-housing issues with the Police Services Liaison to remove problem tenants from units who continue to use illegal drugs. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Forfeitures $ - $ - $ - EXPENDITURES: Personnel Services $ 93,522 $ 22,935 $ 12,420 -45.85% Other Services & Charges 12,019 18,762 19,418 3.50% $ 105,541 $ 41,697 $ 31,838 -23.64% NET TAX AND GENERAL REVENUE SUPPORTED $ 105,541 $ 41,697 $ 31,838 -23.64% PERSONNEL: Number of FTE positions 0.85 0.85 0.95 97 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Crime Prevention Specialist/Outreach PROGRAM SUMMARY: The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs including Neighborhood Watch, National Night Out, Crime-free Multi-housing and numerous other outreach initiatives. In addition, the Police Services Liaison administers the alarm program, nuisance property program, review and revisions of various ordinances and grant research, application and administration and is the staff liaison to SCIP, One Voice, HBCA, Rental Community Engagement Program and other committees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Increase participation in Crime Free Multi-Housing program & Neighborhood Watch. 2. Partner with businesses and neighborhoods to reduce crime. 3. Coordinate information sharing with Police/city staff regarding nuisance properties and other quality of life issues. 4. Coordinate efforts with Joint Community Police Partnership (JCPP) Community Liaison. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ 4,000 $ 3,500 $ 3,500 0.00% Intergovernmental Revenue 900 - - Miscellaneous - - - Donations 85 500 500 0.00% $ 4,985 $ 4,000 $ 4,000 0.00% EXPENDITURES: Personnel Services $ 97,320 $ 117,585 $ 119,655 1.76% Other Services & Charges 10,800 45,614 44,856 -1.66% $ 108,120 $ 163,199 $ 164,511 0.80% NET TAX AND GENERAL REVENUE SUPPORTED $ 103,135 $ 159,199 $ 160,511 0.82% PERSONNEL: Number of FTE positions 0.85 0.85 1.0 Torch Run Cops ‘n Kids Fishing 98 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Support Services PROGRAM SUMMARY: This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ - $ 5,000 $ 5,000 0.00% Charges for Service - 10,000 10,000 0.00% $ - $ 15,000 $ 15,000 0.00% EXPENDITURES: Personnel Services $ 257,075 $ 307,568 $ 322,262 4.78% Other Services & Charges 5,846 8,085 8,252 2.07% $ 262,920 $ 315,653 $ 330,514 NET TAX AND GENERAL REVENUE SUPPORTED $ 262,920 $ 300,653 $ 315,514 4.94% PERSONNEL: Number of FTE positions 3 3 3 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to refine processes for better efficiency of records maintenance. 2. Continue to provide weekly crime statistics and learning additional crime analysis software and mapping tools. 3. Maintain efficiency with report flow to respective agencies. 99 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Systems Management PROGRAM SUMMARY: The Systems Management program of the Police Department is under the supervision of the city’s IT department who oversees the maintenance of all police computer system networks, and state communications interfaces. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to provide exceptional services to all stakeholders. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Other Services & Charges $ 74,027 $ 74,611 $ 98,602 32.15% NET TAX AND GENERAL REVENUE SUPPORTED $ 74,027 $ 74,611 $ 98,602 32.15% PERSONNEL: Number of FTE positions 0 0 0 100 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Licenses & Permits $2,409 $2,430 $800 $ --100.00% State Aid 111,828 135,240 118,000 121,000 2.54% Administrative Citations 300 3,400 300 300 Current Service 11,455 8,444 10,500 10,500 Donations - Miscellaneous 6,477 210 3,500 3,500 Total Revenues 132,469 149,725 133,100 135,300 1.65% Expenditures Salaries, Wages and Benefits Salaries and Wages 542,644 560,867 584,489 611,016 4.54% Fringe Benefits 318,128 304,361 339,082 380,187 12.12% Materials, Supplies and Services Professional & Technical Services 24,921 22,162 25,890 25,890 Utilities and Maintenance 131,782 129,271 127,574 128,174 0.47% Operations 86,632 95,861 84,250 86,350 2.49% City Support Services 192,663 209,188 231,405 252,231 9.00% Supplies and Materials 123,538 111,852 81,710 82,680 1.19% Capital Outlay Equipment 13,602 62,949 8,700 --100.00% Total Expenditures 1,433,910 1,496,511 1,483,100 1,566,528 5.63% Indirectly Funded Amount 1,301,441 1,346,786 1,350,000 1,431,228 6.02% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. FUNCTION: FIRE Revenues and Expenditures 101 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Fire PROGRAM: Fire PROGRAM SUMMARY: The Fire Department includes Emergency Medical Services (EMS), Fire Prevention/Suppression programs. The EMS program supports the Police Department in managing responses to medical emergencies. The Fire Department responds to all life threatening situations and when there are no police officers available to respond. Fire suppression is the response to all fires, hazardous materials, special hazards and special rescue incidents in the city and fire prevention is the enforcement of the fire code, and the review and inspection of new construction. It also provides for public education and files reports with the State Fire Marshall on department activity, property loss or death due to fire emergencies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Recruitment and Retention of members. 2. Implement a Mental Health and PTSD program for Fire Department Staff. 3. Develop and Implement a Staffing plan for the future of HFD. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses & Fines $ 5,830 $ 1,100 $ 300 -72.73% Intergovernmental Revenue 135,240 118,000 121,000 2.54% Charges for Service 8,654 14,000 14,000 0.00% Donations - - - 0.00% $ 149,725 $ 133,100 $ 135,300 1.65% EXPENDITURES: Personnel Services $ 865,228 $ 923,571 $ 991,203 7.32% Other Services & Charges 583,201 550,829 575,325 4.45% Capital Outlay 48,081 8,700 - -100.00% $ 1,496,511 $ 1,483,100 $ 1,566,528 5.63% NET TAX AND GENERAL REVENUE SUPPORTED $ 1,346,786 $ 1,350,000 $ 1,431,228 6.02% PERSONNEL: Number of FTE positions 4.1 4.1 4.1 Volunteer Firefighters 32 32 32 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Total Calls (Medical & Fire Suppression) 1,655 1,559 1,445 Not Available Average Response Time (minutes) 4.2 4.1 4.1 4.1 Dollar Loss From Fire Damage $ 450,000 $ 350,000 $1,560,000 Not Available Public Education Events 107 51 Not Available Not Available 102 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Licenses and Permits $17,950 $7,595 $19,415 $19,415 Intergovernmental 186,458 190,631 170,000 170,000 Charges for Services 48,774 10,547 4,150 3,150 -24.10% Other Miscellaneous 6,260 11,925 5,800 5,300 -8.62% Total Revenues 259,442 220,698 199,365 197,865 Expenditures Salaries, Wages and Benefits Salaries and Wages 1,560,853 1,617,085 1,705,742 1,714,844 0.53% Fringe Benefits 577,730 614,629 674,003 768,586 14.03% Materials, Supplies and Services Professional & Technical Services 368,138 398,820 499,400 444,560 -10.98% Utilities and Maintenance 400,257 341,522 494,820 422,340 -14.65% Operations 41,188 16,445 25,600 39,236 53.27% City Support Services 236,262 245,557 315,191 310,341 -1.54% Supplies and Materials 306,586 332,246 263,585 304,285 15.44% Capital Outlay Equipment 5,932 2,301 3,000 3,000 Total Expenditures 3,496,946 3,568,604 3,981,341 4,007,192 0.65% Reimbursed Expenditures (651,118) (385,118) (538,000) (538,000) Net Total Expenditures 2,845,828 3,183,486 3,443,341 3,469,192 0.75% Indirectly Funded Amount 2,586,386 2,962,788 3,243,976 3,271,327 0.84% FUNCTION: PUBLIC WORKS Revenues and Expenditures 103 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Buildings PROGRAM SUMMARY: The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The public works buildings budget covers the entire public works complex. The buildings and equipment are maintained by in house maintenance personnel and the custodial duties by a contract cleaner. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 39,296 $ 40,673 $ 36,396 -10.51% Other Services & Charges 109,023 111,042 107,566 -3.13% Reimbursed Expenditures (70,000) (70,000) (70,000) 0.00% $ 78,319 $ 81,715 $ 73,962 NET TAX AND GENERAL REVENUE SUPPORTED $ 78,319 $ 81,715 $ 73,962 -9.49% PERSONNEL: Number of FTE positions 0.4 0.4 0.4 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Maintain PW building to assure a safe and comfortable environment for all City employees at the lowest cost to the taxpayer. 104 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Equipment Services PROGRAM SUMMARY: The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ 663 $ 150 $ 150 0.00% EXPENDITURES: Personnel Services $ 252,363 $ 263,914 $ 262,105 -0.69% Other Services & Charges 37,820 44,654 40,866 -8.48% Reimbursed Expenditures (54,606) (143,000) (143,000) 0.00% Capital Expenditures - - 0.00% $ 235,578 $ 165,568 $ 159,971 -3.38% NET TAX AND GENERAL REVENUE SUPPORTED $ 234,915 $ 165,418 $ 159,821 -3.38% PERSONNEL: Number of FTE positions 2.35 2.35 2.35 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue aggressive maintenance and repair of all city equipment. 2. Purchase two riding turf mowers and refuse truck as provided in the City’s Equipment Replacement Plan 105 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Administration PROGRAM SUMMARY: The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks/Forestry & Streets/Traffic; Water and Sewer Utilities and Solid Waste Management. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 208,506 $ 223,339 $ 250,823 12.31% Other Services & Charges 31,082 22,894 21,980 -3.99% Reimbursed Expenditures (148,000) (148,000) (148,000) 0.00% $ 91,588 $ 98,233 $ 124,803 NET TAX AND GENERAL REVENUE SUPPORTED $ 91,588 $ 98,233 $ 124,803 27.05% PERSONNEL: Number of FTE positions 1.35 1.35 1.35 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Southwest Light Rail: protect city interests during construction 2. Continue to analyze and respond to opportunities to save energy and be more environmentally conscious while improving service quality and efficiency. 3. Complete 2021 program of street and utility improvements. 4. Implement Cartegraph software system to improve management of service requests and infrastructure assets. 106 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Engineering PROGRAM SUMMARY: The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as-builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to consultants involved with construction projects. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ 7,490 $ 18,000 $ 18,000 0.00% Charges for Service 1,180 - - $ 8,670 $ 18,000 $ 18,000 0.00% EXPENDITURES: Personnel Services $ 219,137 $ 237,118 $ 258,038 8.82% Other Services & Charges 33,912 51,884 50,039 -3.56% Reimbursed Expenditures (512) (65,000) (65,000) 0.00% $ 252,537 $ 224,002 $ 243,077 8.52% NET TAX AND GENERAL REVENUE SUPPORTED $ 243,867 $ 206,002 $ 225,077 9.26% PERSONNEL: Number of FTE positions 1.75 1.75 1.75 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to develop and verify utility base maps in the GIS system and integrate with Cartegraph software. 2. Complete Phase 2 of the Interlachen neighborhood street & utility improvement project. 3. Complete Knollwood neighborhood street surface improvement plan. 4. Oversee implementation of the City’s Capital Improvement Plan 107 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Streets and Alleys PROGRAM SUMMARY: The Streets Division of the Public Works Department provides maintenance of 55 miles of streets, 30 miles of alleys and 10 parking lots (including parking ramp) within the City for convenient day-to-day use. Also provides street lighting, traffic signs and signals, sidewalk repair, and special event support. Maintenance includes activities such as sweeping, patching, seal coating and curb repair. Major maintenance is scheduled on a 6 year, maintenance district rotation basis. Routine mill/patching/paving is accomplished throughout the City during the summer season. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Street maintenance utilizing pavement management support information that includes prep seal coat areas and contractual crack sealing. 2. Spring sweeping as weather permits, Mainstreet sweeping every three weeks, residential sweeping (spring, summer and once in the fall). 3. Continued maintenance of storm water drainage systems. 4. Inspect and repair all defective sidewalks in district 5. Preventative patching, repairs to bituminous roadways. 6. Maintain sign and signal change outs, inventory signs, upgrade traffic controls and signals as required. 7. Mainstreet maintenance including flags, refuse, decorations and banners, and streetlight maintenance. 8. Provide traffic control and logistical services for special events such as Raspberry Festival, Mainstreet Days, National Night Out, etc., to support the City goal of promoting and enhancing city events. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses $ 105 $ 1,415 $ 1,415 0.00% Intergovernmental Revenue 185,631 170,000 170,000 0.00% Charges for Service 6,404 1,000 -100.00% Miscellaneous 5,041 - - #DIV/0! $ 197,181 $ 172,415 $ 171,415 -0.58% EXPENDITURES: Personnel Services $ 539,424 $ 595,782 $ 604,349 1.44% Other Services & Charges 553,421 677,985 646,685 -4.62% Capital Outlay 22,416 25,000 25,000 0.00% Reimbursed Expenditures (112,000) (112,000) (112,000) 0.00% $1,003,261 $ 1,186,767 $ 1,164,034 -1.92% NET TAX AND GENERAL REVENUE SUPPORTED $ 806,080 $ 1,014,352 $ 992,619 -2.14% PERSONNEL: Number of FTE positions 5.82 5.82 5.97 108 CITY OF HOPKINS PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Miles of streets maintained 55 55 55 55 Crack sealing (square yards) 20,000 30,000 29,460 20,000 Boulevard Trees Planted 116 93 66 75 Number of poles painted/re-painted 45 53 54 - 109 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Snow & Ice Removal PROGRAM SUMMARY: The Snow & Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking lots (including parking ramp) and economic development properties within the city for convenient day-to-day use, and to provide safe travel and parking conditions. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ 194 $ - $ - EXPENDITURES: Personnel Services $ 170,866 $ 148,133 $ 160,331 8.23% Other Services & Charges 72,111 103,663 69,083 -33.36% Capital Outlay - - 0.00% $ 242,977 $ 251,796 $ 229,414 -8.89% NET TAX AND GENERAL REVENUE SUPPORTED $ 242,783 $ 251,796 $ 229,414 -8.89% PERSONNEL: Number of FTE positions 1.04 1.04 1 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Complete plowing/ice treatment operations of all city streets, alleys, parking lots and parking ramp within 10 hours. 2. Complete snow removal operations in downtown areas/ramp/parking lots in efficient manner to meet parking/traffic flow demands. 3. Increase snow/ice maintenance activities on residential streets. 4. Utilize snow emergency policy to maximize safety and snow removal efforts, while minimizing resident conflicts. 5. Help ensure safe travel through efficient, environmentally sensitive use of ice control chemicals PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Snow Removal (inches of precipitation) 78 77 52 Not Available 110 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Park Maintenance & Improvements PROGRAM SUMMARY: The Parks division of the Public Works Department provides for the maintenance of developed parks and grounds adjacent to public buildings and right-of-ways, including: seeding, fertilizing and mowing of grass, tree & plantings maintenance, maintenance of all athletic fields and general playgrounds and maintenance of Shady Oak Beach. Maintenance of Co. Rd 3 median flowers and irrigation is provided. Maintenance of picnic facilities and trails, trash and rubbish removal from parks is also included. Open skating and hockey areas are included. Open skating and hockey areas are provided from December through February for outdoor recreational purposes. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ 880 $ 3,000 $ 3,000 0.00% Miscellaneous 4,801 5,300 5,300 0.00% $ 5,681 $ 8,300 $ 8,300 0.00% EXPENDITURES: Personnel Services $ 643,198 $ 712,826 $ 731,617 2.64% Other Services & Charges 348,287 416,807 438,043 5.09% Capital Outlay - - 0.00% $ 991,485 $ 1,129,633 $ 1,169,660 3.54% NET TAX AND GENERAL REVENUE SUPPORTED $ 985,804 $ 1,121,333 $ 1,161,360 3.57% PERSONNEL: Number of FTE positions 6.76 6.76 6.95 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue grounds maintenance of all parks including Shady Oak Beach, plus City Hall, 4 well houses, Public Works garage and all other City owned right-of-way. 2. Provide open skating and hockey at the following parks: Valley, Harley Hopkins, Oakes, Central, Interlachen, open skating only at Hilltop and Burnes. 3. Continue to help ensure safe public use of the parks through inspection & maintenance of play equipment, courts, splash pad and facilities PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Number of Parks 19 19 19 19 111 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Forestry PROGRAM SUMMARY: The Forestry Division of the Public Works Department provides for the maintenance of all trees. Through the utilization of arboricultural practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Trim 12% of trees on city boulevards. 2. Remove all diseased, dead, dying trees on public property. 3. Thin the public tree ash population by removing poorly sited, declining and poorly formed trees. 4. Manage an effective data base record keeping system that tracks forestry activities to better manage and maintain public trees. 5. Provide for prompt customer service on requests for trimming and tree consultation 6. Continue new tree planting through direct purchase, Hennepin County/Tree Trust programs and grants FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for service $ 1,700 $ - $ - Intergovernmental 5,000 - - 0.00% $ 6,700 $ - $ - EXPENDITURES: Personnel Services $ 158,924 $ 157,960 $ 179,771 13.81% Other Services & Charges 127,207 147,168 124,499 -15.40% $ 286,131 $ 305,128 $ 304,270 NET TAX AND GENERAL REVENUE SUPPORTED $ 279,431 $ 305,128 $ 304,270 -0.28% PERSONNEL: Number of FTE positions 1.46 1.46 1.54 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Linear miles of Blvd streets to manage 55 55 55 55 Public trees planted (reforestation/restoration) 116 93 66 75 112 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Expenditures Salaries, Wages and Benefits Salaries and Wages 4,411 4,752 4,881 5,157 5.66% Fringe Benefits 1,281 2,128 2,084 1,569 -24.69% Materials, Supplies and Services Operations 209,134 296,248 273,000 281,000 2.93% City Support 2,014 2,034 2,095 2,412 15.13% Supplies & Materials 177 - Utilities and Maintenance 681 634 1,350 1,200 -11.11% Total Expenditures 217,521 305,974 283,410 291,339 2.80% Indirectly Funded Amount 217,521 305,974 283,410 291,339 2.80% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. FUNCTION: RECREATION BUDGET Revenues and Expenditures 113 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Recreation PROGRAM: Joint Recreation PROGRAM SUMMARY: Programs for all ages are provided through the Joint Recreation division. Youth classes are offered in over 15 areas of interest including tennis, golf, swimming, ball skills, and arts & crafts. Youth sports leagues are offered in basketball and soccer. Adult classes are offered in several areas of interest, and team sports are offered in soccer, softball, basketball, volleyball, hockey, broomball and football. In addition, the joint recreation division oversees the operation of Shady Oak Beach, attended by over 30,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to develop partnerships in order to expand youth programming opportunities 2. Hire and train attendants to supervise park services at Burnes, Oakes and Valley Parks 3. Provide staff to supervise outdoor ice rinks at 13 locations in Hopkins and Minnetonka from mid-December through mid-February 4. Continue summer playground program for children at 11 locations in Hopkins and Minnetonka. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Other Services & Charges $ 296,088 $ 273,000 $ 281,000 2.93% NET TAX AND GENERAL REVENUE SUPPORTED $ 296,088 $ 273,000 $ 281,000 2.93% PERSONNEL: Number of Part-time positions 90 90 90 114 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Recration PROGRAM: Overpass Skate Park PROGRAM SUMMARY: The Overpass program provides skate boarders, bikers, and inline skate athletes, 10 years of age or older, with a safe, fun, and challenging place to gather and practice their sport. The Overpass creates a healthy recreational opportunity primarily for youth, and young adults. The Overpass is a seasonal operation, and one of only a few tier II aggressive skate parks in the state of Minnesota. This unique park attracts a regional population in addition to serving the residents of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. To operate the park under a contractual operating agreement with 3rd Lair Skate Parks. 2. To operate the park with favorable fees for resident and community partners. 3. To increase the number of Hopkins resident users and partner community (Minnetonka and St. Louis Park) resident users. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 6,881 $ 6,965 $ 6,727 -3.42% Other Services & Charges 2,845 3,445 3,612 4.85% $ 9,726 $ 10,410 $ 10,339 NET TAX AND GENERAL REVENUE SUPPORTED $ 9,726 $ 10,410 $ 10,339 -0.69% PERSONNEL: Number of FTE positions 0.05 0.05 0.05 115 CITY OF HOPKINS FUNCTION: ACTIVITY CENTER Revenues and Expenditures Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Charges for Services $100,313 $136,426 $87,000 $67,500 -22.41% Contributions 33,178 17,638 32,100 14,000 -56.39% Miscellaneous -1,118 Total Revenues 133,491 155,182 119,100 81,500 -31.57% Expenditures Salaries, Wages and Benefits Salaries and Wages 214,730 219,723 246,506 245,098 -0.57% Fringe Benefits 77,547 67,102 85,893 79,601 -7.33% Materials, Supplies and Services Professional & Technical Services 50,574 86,425 47,700 46,486 -2.55% Utilities and Maintenance 48,832 33,355 47,800 40,058 -16.20% Operations 18,081 11,136 28,450 8,475 -70.21% City Support Services 14,893 14,642 15,298 16,675 9.00% Supplies and Materials 24,503 15,337 26,025 18,405 -29.28% Capital Outlay Buildings & Structures - - - - Office Furniture and Equipment 2,550 2,930 2,000 2,000 Other Equipment - - - - Total Expenditures 451,710 450,649 499,672 456,798 -8.58% Indirectly Funded Amount 318,219 295,467 380,572 375,298 -1.39% The Activity Center Department is made up of two programs. They are Community Use and Maintenance. 116 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Activity Center PROGRAM: Programming PROGRAM SUMMARY: The Activity Center Community Use program provides a facility for residents to use for active or passive activities. Staff coordinates all users of the Activity Center. The Hopkins Activity Center also implements and coordinates the Senior Adult Program, which is geared towards the over 50 Hopkins population. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Rent $ 26,684 $ 29,000 $ 20,000 -31.03% Charges for Service 95,741 45,000 40,000 -11.11% Miscellaneous 32,757 45,100 21,500 -52.33% $155,182 $ 119,100 $ 81,500 -31.57% EXPENDITURES: Personnel Services $266,962 $ 311,880 $ 302,525 -3.00% Other Services & Charges 122,463 109,891 72,729 -33.82% Capital Expenditures 2,000 $389,425 $ 421,771 $ 377,254 -10.55% NET TAX AND GENERAL REVENUE SUPPORTED $234,243 $ 302,671 $ 295,754 -2.29% PERSONNEL: Number of FTE positions 2.8 2.8 2.8 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Market the Hopkins Activity Center to the over 50 Hopkins population, especially through electronic media. 2. Work with the Hopkins festivals and special events committees to promote events for the over 50 population 117 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Activity Center PROGRAM: Maintenance PROGRAM SUMMARY: The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Activity Center maintenance budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this building. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 19,862 $ 20,519 $ 22,175 8.07% Other Services & Charges 41,361 57,382 57,370 -0.02% $ 61,223 $ 77,901 $ 79,545 NET TAX AND GENERAL REVENUE SUPPORTED $ 61,223 $ 77,901 $ 79,545 2.11% PERSONNEL: Number of FTE positions 0.02 0.2 0.2 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Maintain Activity Center building to assure a safe and comfortable environment for its employees and patrons of the facility 118 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Permits and Licenses $ 1,060 $ 1,345 $ 1,000 $ 1,000 Charges for Services 3,950 4,550 2,500 2,500 Miscellaneous - - - - Total Revenues 5,010 5,895 3,500 3,500 Expenditures Salaries, Wages and Benefits Salaries and Wages 117,655 121,718 129,594 135,036 4.20% Fringe Benefits 33,873 30,184 34,260 35,549 3.76% Materials, Supplies and Services Professional & Technical Services 91,873 8,980 60,000 69,600 16.00% Utilities and Maintenance 129 164 200 --100.00% Operations 8,453 5,676 15,150 11,548 -23.78% City Support Services 1,042 1,092 1,166 1,267 8.66% Supplies and Materials 1,684 602 2,000 --100.00% Total Expenditures 254,709 168,417 242,370 253,000 4.39% Reimbursed Expenditures (20,000) (20,000) (20,000) (20,000) Net Total Expenditures 234,709 148,417 222,370 233,000 4.78% Indirectly Funded Amount 229,699 142,522 218,870 229,500 4.86% The Planning and Economic Development Department is made up of three programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. FUNCTION: PLANNING Revenues and Expenditures 119 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Planning and Zoning PROGRAM: Zoning Activities, Planning & Enforcement PROGRAM SUMMARY: The Zoning Activities & Enforcement Program of the Planning & Economic Development Department provides administration and enforcement of locally approved Zoning Ordinance and Comprehensive Plan. Provides administration and inspection of signs and fences and prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Complete and adopt the new zoning code 2. Process land use, sign and fence permit application, and respond to customer’s needs in a timely manner 3. Provide staff assistance to Planning Commission & expertise to the City Council FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Licenses & Permits $ 1,345 $ 1,000 $ 1,000 0.00% Charges for Services 4,550 2,500 2,500 0.00% Miscellaneous - - $ 5,895 $ 3,500 $ 3,500 0.00% EXPENDITURES: Personnel Services $151,902 $ 163,854 $ 170,585 4.11% Other Services & Charges 16,515 78,516 82,415 4.97% Reimbursed Expenditures (20,000) (20,000) (20,000) 0.00% $148,417 $ 222,370 $ 233,000 4.78% NET TAX AND GENERAL REVENUE SUPPORTED $142,522 $ 218,870 $ 229,500 4.86% PERSONNEL: Number of FTE positions 1.35 1.35 1.35 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Estimated Market Value of Median Value Home $261,000 $276,000 $291,000 $305,000 Estimated Market Value of Vacant Land (in millions) Increase in Total Market Value $17.1 5.4% $10.1 11.3% $9.5 6.1% - 4.5% 120 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Miscellaneous $- $- $60,000 $30,000 -50.00% Expenditures Salaries, Wages and Benefits Salaries and Wages 62,959 71,975 76,617 81,374 6.21% Fringe Benefits 22,970 25,323 24,194 26,649 10.15% Materials, Supplies and Services Professional & Technical Services 1,140 1,185 2,600 2,450 -5.77% Operations 3,527 2,590 3,300 2,995 -9.24% City Support Services 349 367 393 428 8.91% Supplies and Materials 939 1,109 1,050 1,025 -2.38% Total Expenditures 91,884 102,549 108,154 114,921 6.26% Indirectly Funded Amount $91,884 $102,549 $48,154 $84,921 76.35% The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. FUNCTION: COMMUNITY DEVELOPMENT Revenues and Expenditures 121 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Development PROGRAM: Community Development PROGRAM SUMMARY: Promotion and development of housing programs and activities for City property owners and residents. Staff support of housing programs such as 1st Time Home Buyer Mortgage Program, Image Awards, Housing Improvement Areas and Livable Communities Program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue promotion and support of various housing programs and initiatives 2. Investigate and prepare funding application for redevelopment projects from sources including Hennepin County Transit Orientated Development (TOD) program and Met Council Livable Communities Demonstration Account. 3. Continue to be a City of Hopkins representative to Hopkins Apartment Managers’ Association, Southwest Light Rail Transit Technical Implementation Committee, Blake Road Corridor Collaborative, Hopkins Business & Civic Association, School & Community Partnerships and other collaborative efforts FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Miscellaneous $ - $ 60,000 $ 30,000 -50.00% EXPENDITURES: Personnel Services $ 97,298 $ 100,812 $ 108,023 7.15% Other Services & Charges 5,250 7,343 6,898 -6.06% $102,549 $ 108,155 $ 114,921 NET TAX AND GENERAL REVENUE SUPPORTED $102,549 $ 48,155 $ 84,921 76.35% PERSONNEL: Number of FTE positions 0.85 0.85 0.85 122 CITY OF HOPKINS Special Revenue Fund 203 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Intergovernmental $ 64,514 $ 74,586 $ 65,000 $ 65,000 Miscellaneous - - - - Refunds & Reimbursements - - - - Total Revenues 64,514 74,586 65,000 65,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 37,822 40,108 38,752 38,752 0.00% Materials, Supplies and Services Professional & Technical Services 4,118 415 2,150 2,150 Utilities and Maintenance 2,702 2,108 5,141 5,141 Operations 2,554 12,830 4,063 4,063 Leases 7,811 8,752 6,560 6,560 City Support Services 2,557 2,295 1,994 1,994 0.02% Supplies and Materials 4,082 11,804 6,340 6,340 Capital Outlay Computers - - - - Other Equipment - - - - Total Expenditures 61,646 78,312 65,000 65,000 Excess (deficiency) of revenue over expenditures 2,868 (3,726) - - FUNCTION: STATE CHEMICAL ASSESSMENT Revenues and Expenditures The State Chemical Assessment is supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. 123 CITY OF HOPKINS FUND 203 – CHEMICAL ASSESSMENT TEAM FUND FUNCTION: State Chemical Assessment Team PROGRAM: State Chemical Assessment Team PROGRAM SUMMARY: The State Chemical Assessment Team program provides emergency response for assessment of chemical hazards for the State of Minnesota and maintenance of state owned equipment for emergency response and training of personnel. Responding as requested by the State Duty Officer to the counties of Hennepin, Scott, Carver, McLeod and Renville. The State of Minnesota will reimburse the City for up to $60,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. To continue to train to members on all aspects of chemical response. 2. Prepare the team to respond to all types of emergencies, including hazardous materials and civil unrest. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Intergovernmental Revenue $ 74,586 $ 65,000 $ 65,000 0.00% EXPENDITURES: Personnel Services $ 40,108 $ 38,752 $ 38,752 0.00% Other Services & Charges 38,204 26,248 26,248 0.00% $ 78,312 $ 65,000 $ 65,000 NET TAX AND GENERAL REVENUE SUPPORTED $ 3,726 $ - $ - -- PERSONNEL: Number of FTE positions 0 0 0 124 CITY OF HOPKINS Special Revenue Fund 204 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Property Taxes $479,054 $531,241 $442,951 $478,070 7.93% Intergovernmental 805,700 30,000 - - Interest Earnings 17,424 25,016 25,000 25,000 Charges for services - - Miscellaneous 87,848 28,595 - - Transfers In - 4,751 - - Total Revenues 1,390,026 619,603 467,951 503,070 7.50% Expenditures Salaries, Wages and Benefits Salaries and Wages 166,005 173,841 187,440 196,785 4.99% Fringe Benefits 56,707 55,070 61,720 69,684 12.90% Materials, Supplies and Services Professional & Technical Services 175,151 88,105 86,050 68,050 -20.92% Utilities and Maintenance 740 731 1,000 1,000 Operations 10,989 9,220 6,900 6,100 -11.59% City Support Services 20,290 20,229 23,435 23,481 0.20% Supplies and Materials 10,346 5,153 3,800 3,800 Grant Expenditures 970,909 4,719 70,000 110,000 57.14% Operating Transfer In (Out)- - 30,000 60,000 100.00% 1,411,137 357,068 470,345 538,900 14.58% Total Expenditures 1,411,137 357,068 470,345 538,900 -12.72% Reimbursed Expenditures (40,000) (40,000) (40,000) (40,000) Net Total Expenditures 1,371,137 317,068 430,345 498,900 15.93% Excess (deficiency) of Revenues over Expenditures 18,889 302,535 37,606 4,170 -88.91% Revenues and Expenditures FUNCTION: ECONOMIC AND COMMUNITY DEVELOPMENT The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 125 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND FUNCTION: Economic Development PROGRAM: Project Development and Coordination PROGRAM SUMMARY: Undertake development activities not directly funded by specific project budgets. Meet with developers, property owners and business tenants to review possible redevelopment/development activities. Recruit desirable businesses to locate in Hopkins. Explore developer incentives aimed at promoting sustainability and active living. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Property Taxes $ 531,241 $ 442,951 $ 478,070 7.93% Intergovernmental Revenue 30,000 - - Interest 10,146 10,000 10,000 0.00% Miscellaneous 6,747 - - $ 578,134 $ 452,951 $ 488,070 7.75% EXPENDITURES: Personnel Services $ 84,511 $ 114,435 $ 123,368 7.81% Other Services & Charges 59,925 56,227 55,450 -1.38% Transfer Out - 30,000 $ 144,435 $ 170,662 $ 208,818 22.36% NET TAX AND GENERAL REVENUE SUPPORTED $ (433,699) $ (282,289) $ (279,252) -1.08% PERSONNEL: Number of FTE positions 0.95 0.95 0.95 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Offer Commercial Façade Grant Program 2. Promote Hopkins to development/business community 3. Facilitate redevelopment projects as direct by the City Council 126 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND FUNCTION: Economic Development PROGRAM: Tax Increment Financing Program PROGRAM SUMMARY: Undertake miscellaneous development activities funded through tax increment districts. Administer all districts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Ensure districts are meeting legal and statutory requirements 2. Continue to monitor all districts 3. Coordinate development activities within districts FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Personnel Services $ 79,611 $ 74,387 $ 78,971 6.16% Other Services & Charges 8,256 9,220 7,234 -21.54% Reimbursed Expenditures (40,000) (40,000) (40,000) 0.00% $ 47,867 $ 43,607 $ 46,205 NET TAX AND GENERAL REVENUE SUPPORTED $ 47,867 $ 43,607 $ 46,205 5.96% PERSONNEL: Number of FTE positions 0.55 0.55 0.55 127 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND FUNCTION: Economic Development PROGRAM: Community Development Activity PROGRAM SUMMARY: Promote the City of Hopkins by building on assets, including the small town feel, walkability and Hopkins as a destination. Explore ways to enhance the sense of place through public art and directional signage. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Develop a marketing strategy that supports business, education and the arts 2. Support Hopkins Artstreet 3. Work with business community to respond to unique needs and challenges brought on by COVID-19 FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Interest $ - $ - $ - Intergovernmental revenue - - - Miscellaneous - - - $ - $ - $ - EXPENDITURES: Personnel Services $ 64,789 $ 60,338 $ 64,130 6.28% Other Services & Charges 32,857 125,738 149,747 19.09% Transfer Out - 30,000 30,000 0.00% $ 97,646 $ 216,076 $ 243,877 12.87% NET TAX AND GENERAL REVENUE SUPPORTED $ 97,646 $ 216,076 $ 243,877 12.87% PERSONNEL: Number of FTE positions 0.5 0.5 0.5 128 CITY OF HOPKINS Special Revenue Fund 211 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Tax Increment $39,507 $54,375 $30,000 $30,000 Interest 765 1,568 Transfers In Total Revenues 40,273 55,943 30,000 30,000 Expenditures Materials, Supplies and Services Professional & Technical Services 2,173 416 1,000 1,000 Operations 2,000 2,000 2,000 2,000 Interest Expense 9,487 8,239 12,000 12,000 Total Expenditures 13,660 10,654 15,000 15,000 Transfers out for debt - - - - Total Expenditures 13,660 10,654 15,000 15,000 Excess (deficiency) of Revenues over Expenditures 26,613 45,288 15,000 15,000 Revenues and Expenditures FUNCTION: TIF DISTRICT 1-2 The Tax Increment District 1-2 Fund is the redevelopment of former Suburban Chevrolet property. The tax increment district is located in the Central Business District. The fund records the use of tax increment receipts. 129 CITY OF HOPKINS FUND 211 – TAX INCREMENT DISTRICT 1-2 FUND FUNCTION: Tax Increment Financing PROGRAM: Redevelopment within Central Business District PROGRAM SUMMARY: Redevelopment activity of property in the Central Business District (CBD), north and south of Mainstreet between 11th and 12th Avenues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Tax Increments $ 54,375 $ 30,000 $ 30,000 0.00% Interest 1,568 - - $ 55,943 $ 30,000 $ 30,000 0.00% EXPENDITURES: Other Services & Charges $ 10,654 $ 15,000 $ 15,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ (45,288) $ (15,000) $ (15,000) 0.00% PERSONNEL: Number of FTE positions 0 0 0 130 CITY OF HOPKINS Special Revenue Fund 214 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Court Fines $18,912 $16,919 $20,000 $20,000 Leased Parking 116,825 116,426 133,025 100,000 -24.83% Interest Earned 519 1,241 1,500 1,500 Transfer In - - - - Total Revenues 136,256 134,585 154,525 121,500 -21.37% Expenditures Salaries, Wages and Benefits Salaries and Wages 67,817 69,042 72,671 73,090 0.58% Fringe Benefits 27,940 30,602 31,954 34,208 7.05% Materials, Supplies and Services Professional & Technical Services 4,295 2,761 6,150 6,150 Utilities and Maintenance 14,260 38,060 14,325 14,225 -0.70% Operations 309 336 750 750 City Support Services 20,369 20,583 23,239 24,852 6.94% Supplies and Materials 2,106 1,344 1,600 1,600 Capital Outlay Other Improvements - - - - Total Expenditures 137,096 162,728 150,690 154,875 2.78% Excess (deficiency) of Revenues over Expenditures (840) (28,143) 3,834 (33,375) -970.44% Revenues and Expenditures FUNCTION: PARKING The Parking Fund records the receipt of parking permits and parking fines. The revenues are used to offset the maintenance cost of the parking lots and parking ramp and to fund the parking enforcement officer. 131 CITY OF HOPKINS FUND 214 – PARKING FUND FUNCTION: Parking PROGRAM: Parking Enforcement PROGRAM SUMMARY: Manage and enforce parking rules and regulations. Ensure that parking is available for customers and parking rules are followed. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Fines & Forfeits $ 16,664 $ 20,000 $ 20,000 0.00% EXPENDITURES: Personnel Services $ 63,375 $ 67,173 $ 70,143 4.42% Other Services & Charges 16,271 14,834 14,916 0.56% $ 79,646 $ 82,006 $ 85,059 NET TAX AND GENERAL . . . REVENUE SUPPORTED $ 62,982 $ 62,006 $ 65,059 4.92% PERSONNEL: Number of FTE positions 0.0725 0.0725 0.0725 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Monitor the effects of current parking enforcement efforts and recommend changes as needed. 2. Continue to accurately account for fine revenues that result from parking enforcement. 132 CITY OF HOPKINS FUND 214 – PARKING FUND FUNCTION: Parking PROGRAM: Parking Operations PROGRAM SUMMARY: Implement and manage parking recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Leases $ 116,681 $ 133,025 $ 100,000 -24.83% Interest 1,500 - -100.00% $ 116,681 $ 134,525 $ 100,000 -25.66% EXPENDITURES: Personnel Services $ 36,270 $ 37,453 $ 37,155 -0.80% Other Services & Charges 1,642 1,782 1,782 0.00% $ 37,912 $ 39,235 $ 38,937 -0.76% NET TAX AND GENERAL REVENUE SUPPORTED $ (78,769) $ (95,290) $ (61,063) -35.92% PERSONNEL: Number of FTE positions 0.4 0.4 0.4 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Inspect and maintain parking ramp as needed. 2. Complete ramp condition assessment and revise long-range plan. 3. Consider additional electric vehicle charging stations in surface parking lots 133 CITY OF HOPKINS FUND 214 – PARKING FUND FUNCTION: Parking PROGRAM: Parking Ramp PROGRAM SUMMARY: Proper handling of all matters related to the operation and administration of the leased parking system for the ramp. Implement recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. 3. Complete Ramp signage replacement project FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change EXPENDITURES: Other Services & Charges $ 45,170 $ 29,449 $ 30,879 4.86% Capital Expenditures - - -- $ 45,170 $ 29,449 $ 30,879 NET TAX AND GENERAL REVENUE SUPPORTED $ 45,170 $ 29,449 $ 30,879 4.86% PERSONNEL: Number of FTE positions 0 0 0 134 CITY OF HOPKINS Special Revenue Fund 216 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Contributions $6,000 11,029 6,000 6,000 Interest Earned 12 - - - Total Revenue 6,012 11,029 6,000 6,000 Expenditures Salaries, Wages and Benefits Salaries and Wages Fringe Benefits Materials, Supplies and Services Professional & Technical Services 7,000 9,003 5,700 6,000 5.26% Utilities and Maintenance Operations 1,468 City Support Services - Supplies and Materials 255 1,715 300 - -100.00% Capital Outlay Equipment Transfer Out Total Expenditures 7,255 12,186 6,000 6,000 Excess (deficiency) of Revenues over Expenditures (1,242) (1,157) - - Revenues and Expenditures FUNCTION: HOPKINS RACE & EQUITY INITATIVE This fund was established to account for the activity of a colloborative effort of the City, Hopkins School District and Gethsemene Lutheran Church centered on race equity. “Is White Privilege Real or Imagined” community conversation 135 CITY OF HOPKINS FUND 216 – HOPKINS RACE & EQUITY INITATIVE FUND (HREI) FUNCTION: Hopkins Race & Equity Initiative PROGRAM: Hopkins Race & Equity Initiative PROGRAM SUMMARY: The Hopkins Race and Equity Initiative is a collaborative effort creating opportunities to increase awareness and understanding of race, equity and diversity and promoting a sense of community that welcomes and values all residents. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to host community events to promote race equity. 2. Continue relationships with the Joint Community Policing Program, Multicultural Advisory Committee and the Government Alliance on Racial Equity. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Contributions $ 11,000 $ 6,000 $ 6,000 0.00% Interest 29 - - $ 11,029 $ 6,000 $ 6,000 0.00% EXPENDITURES: Personnel Services $ - $ - Other Services & Charges 12,186 6,000 6,000 0.00% $ 12,186 $ 6,000 $ 6,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 1,157 $ - $ - PERSONNEL: Number of FTE positions 0 0 0 136 CITY OF HOPKINS Special Revenue Fund 217 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Franchise Fees $256,467 $242,922 $235,014 $240,000 2.12% Charges for Services - - - - Proceeds from Sale of Assets 571 581 - - Interest Earned 1,310 2,600 3,000 3,000 Total Revenue 258,348 246,103 238,014 243,000 2.09% Expenditures Salaries, Wages and Benefits Salaries and Wages 82,689 77,257 91,929 97,852 6.44% Fringe Benefits 24,779 19,406 28,834 37,192 28.99% Materials, Supplies and Services Professional & Technical Services 35,054 21,891 17,250 17,250 Utilities and Maintenance 1,092 1,198 880 900 2.27% Operations 32,543 20,888 30,278 28,770 -4.98% City Support Services 13,416 13,656 14,658 14,658 0.00% Supplies and Materials 424 812 1,327 1,102 -16.96% Capital Outlay Equipment - - 3,500 3,500 Transfer Out 86,920 303,431 50,000 50,000 Total Expenditures 276,918 458,540 238,656 251,224 5.27% Excess (deficiency) of Revenues over Expenditures (18,569) (212,437) (643) (8,224) 1179.32% Revenues and Expenditures FUNCTION: COMMUNICATIONS The Communication Fund (formerly known as the Cable fund) records the City's share of a five city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. 137 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND FUNCTION: Communications PROGRAM: Communication PROGRAM SUMMARY: Provide two-way communication between the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: Communications: 1. Promote City events, large and small. 2. Work on engaging and reaching all community members. Newsletters: 3. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. 4. Increase newsletter distribution to rental properties. Web and Messaging: 5. City Goal 1, Explore improved service delivery through e-commerce: 6. Increase interactivity on web site through one or more of the following: • Update website to make more accessible for all. • Customer Response system. • Ability to fill out forms on the website. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Franchise Fees $ 242,922 $ 235,014 $ 240,000 2.12% Interest 3,181 3,000 3,000 0.00% $ 246,104 $ 238,014 $ 243,000 2.09% EXPENDITURES: Personnel Services $ 96,663 $ 120,763 $ 135,044 11.83% Other Services & Charges 58,446 64,393 62,680 -2.66% Capital Expenditures - 3,500 3,500 0.00% Transfer Out 303,431 50,000 50,000 0.00% $ 458,540 $ 238,656 $ 251,224 5.27% NET TAX AND GENERAL REVENUE SUPPORTED $ 212,436 $ 642 $ 8,224 1181.00% PERSONNEL: Number of FTE positions 1 1 1 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Facebook fans Not Available 17,831 Not Available Not Available Twitter followers Not Available 24,327 Not Available Not Available 138 CITY OF HOPKINS Special Revenue Fund 219 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Intergovernmental $15,000 $19,500 $20,000 $19,500 -2.50% Leases and Rentals 71,026 65,775 56,500 54,500 -3.54% Concessions & Merchandise Sales 217,929 182,625 199,000 119,000 -40.20% Donations & Contributions 1,300 120 2,000 - -100.00% Interest - - Miscellaneous 15,000 20,000 20,000 20,000 Transfer In 15,000 20,000 20,000 20,000 Total Revenues 335,255 308,020 317,500 233,000 -26.61% Expenditures Salaries, Wages and Benefits Salaries and Wages 170,815 151,575 137,952 118,328 -14.23% Fringe Benefits 56,502 41,237 35,203 43,379 23.23% Materials, Supplies and Services Professional & Technical Services 12,934 4,845 13,600 10,550 -22.43% Utilities and Maintenance 16,236 18,498 11,850 14,784 24.76% Operations 14,186 5,610 8,465 6,295 -25.63% City Support Services 539 2,081 2,396 2,680 11.87% Supplies and Materials 97,298 82,214 87,300 51,250 -41.29% Total Expenditures 368,510 306,059 296,766 247,266 -16.68% Excess (deficiency) of Revenues over expenditures (33,255) 1,961 20,734 (14,266) -168.80% Revenues and Expenditures FUNCTION: DEPOT COFFEE HOUSE The Depot Coffee House Fund accounts for the operations of the Youth Center, a chemical free environment for area teens to socialize and the operations of the Coffee House which provides a service to the Youth and those on the regional trail system. 139 CITY OF HOPKINS FUND 219 – DEPOT COFFEE HOUSE FUND FUNCTION: Depot Coffee House PROGRAM: Depot Youth Project PROGRAM SUMMARY: Depot Mission To provide a place of community and learning in which student involvement and youth development are encouraged in a chemically-free environment Depot Youth Project staffing and programs are funded primarily through admission fees, rentals, gifts and grants. The Depot programs are intended to offer area youth creativity and leadership opportunities, strengthen youth involvement in community activities, and nurture their growth and development as citizens through interaction with peers, the public, and community partners. The Depot Board and The Partners Advisory Team, consisting of students, community members, community business partners, City, Hopkins School District, Depot Youth Foundation and Three Rivers Park District representatives, guide and support site and programming decisions.. The facility/grounds serve as a Trailhead for Three Rivers Park District and the coffee house which operates 7 days a week is an amenity enjoyed by local residents as well as trail riders/walkers. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Intergovernmental $ 69,500 $ 70,000 $ 69,500 -0.71% Charges for Service 9,553 5,000 1,000 -80.00% Miscellaneous 20,120 22,000 20,000 -9.09% Transfer In 20,000 20,000 20,000 0.00% $ 119,173 $ 117,000 $ 110,500 -5.56% EXPENDITURES: Personnel Services $ 93,904 $ 103,823 $ 103,377 -0.43% Other Services & Charges 19,342 22,361 21,654 -3.16% Capital Expenditures - - 0.00% $ 113,247 $ 126,184 $ 125,031 -0.91% NET TAX AND GENERAL REVENUE SUPPORTED $ (5,926) $ 9,184 $ 14,531 58.22% PERSONNEL: Number of FTE positions 1.0 1.0 1.0 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Sustain welcoming and chemical free venue for community youth and other gatherings. 2. Continue staffing 2 – 3 night a week year -round youth events programming at the Depot. 3. Support additional youth-initiated projects. 4. Provide learning lab for Business/Marketing classes at Hopkins High School. 5. Promote partnerships with the Depot in the community, with area students, and youth allies. 6. Create new youth learning opportunities with Coffee Operations staff. 7. Provide workplace training and employment opportunities for youth. 140 CITY OF HOPKINS FUND 219 – DEPOT COFFEE HOUSE FUND FUNCTION: Depot Coffee House PROGRAM: Depot Coffee Ops PROGRAM SUMMARY: The coffee shop is a natural adjunct to the youth programming at the Depot and provides actual sustenance for youth patrons and the wider community as well as employment and training opportunities for youth. . MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to provide organic fair-trade coffee drinks, locally sourced snacks and hand-crafted baked goods, sandwiches, salads, and soups for youth and adult patrons. 2. Provide barista/customer service training and supervision for youth volunteers and employees. 3. Provide learning lab for Marketing/Business students at Hopkins High School. 4. Offer food choices as well as repair and small merchandise items for biking/trail patrons of the Depot. 5. Develop catering menu and business for youth to operate. 6. Develop food service partnership with Hopkins Activity Center. 7. Update prices to increase revenue and remain competitive in marketplace. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Charges for Service $ 188,847 $ 200,500 $ 122,500 -38.90% EXPENDITURES: Personnel Services $ 98,907 $ 69,332 $ 58,330 -15.87% Other Services & Charges 93,905 101,250 63,905 -36.88% $ 192,812 $ 170,582 $ 122,235 -28.34% NET TAX AND GENERAL REVENUE SUPPORTED $ 3,965 $ (29,918) $ (265) -99.11% PERSONNEL: Number of FTE positions 3.62 3.25 3.25 141 CITY OF HOPKINS Special Revenue Fund 226 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Tax Increment $17,905 $19,569 $14,000 $14,000 Interest 20 257 - - Other Surcharges/Misc. 4,760 31 7,000 7,000 Transfers In 24,108 13,022 - Total Revenues 46,793 32,879 21,000 21,000 Expenditures Materials, Supplies and Services Professional & Technical Services 2,115 29 - - Operations 1,500 1,500 - - Interest Expense - 1,907 7,500 7,500 Transfer Out - 4,751 - - Total Expenditures 3,615 8,187 7,500 7,500 Excess of Revenues over Expenditures 43,178 24,692 13,500 13,500 Revenues and Expenditures FUNCTION: TIF DISTRICT 2-6 The Tax Increment 2-6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 142 CITY OF HOPKINS FUND 226 – TAX INCREMENT 2-6 FUND FUNCTION: Tax Increment Financing PROGRAM: Sonoma Handicap Housing Project PROGRAM SUMMARY: Coordinate redevelopment of northwest corner of 5th Avenue and Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Tax Increments $ 19,569 $ 14,000 $ 14,000 0.00% Miscellaneous 288 7,000 7,000 0.00% Interest - - Tranfer In 13,022 - - $ 32,879 $ 21,000 $ 21,000 0.00% EXPENDITURES: Other Services & Charges $ 8,187 $ 7,500 $ 7,500 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ (24,692) $ (13,500) $ (13,500) 0.00% PERSONNEL: Number of FTE positions 0 0 0 143 CITY OF HOPKINS Special Revenue Fund 231 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Tax Increment $2,092,747 $2,216,873 $2,200,000 $2,233,000 1.50% Interest 16,913 30,454 17,000 17,000 Miscellaneous -6,204 Total Revenues 2,109,660 2,253,531 2,217,000 2,250,000 1.49% Expenditures Materials, Supplies and Services Professional & Technical Services 7,144 36,817 50,000 50,000 Operations 47,440 47,440 - - Supplies & Maintenance 179 PAYG Note 840,291 Debt Service - - - - Capital Outlay TIF projects - - - - Transfers out 1,336,108 1,371,022 1,700,000 1,700,000 Total Expenditures 1,390,692 2,295,748 1,750,000 1,750,000 Excess (deficiency) of Revenues over Expenditures 718,969 (42,217) 467,000 500,000 7.07% Revenues and Expenditures FUNCTION: TIF DISTRICT 2-11 The Tax Increment District 2-11 fund is the SuperValu and Super Value North Annex redevelopment. This fund records the use of tax increments and bond proceeds. 144 CITY OF HOPKINS FUND 231 – TAX INCREMENT 2-11 FUND FUNCTION: Tax Increment Financing PROGRAM: Redevelopment Area – North Annex Property PROGRAM SUMMARY: Coordinate and review development and redevelopment activity. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go financing to developer as scheduled. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Tax Increments $ 2,216,873 $ 2,200,000 $ 2,233,000 1.50% Interest 36,658 17,000 17,000 0.00% $ 2,253,531 $ 2,217,000 $ 2,250,000 1.49% EXPENDITURES: Other Services & Charges $ 84,436 $ 50,000 $ 50,000 0.00% Debt Service - PAYG TIF 840,291 - - #DIV/0! Transfer Out 1,371,022 1,700,000 1,700,000 0.00% $ 2,295,748 $ 1,750,000 $ 1,750,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 42,217 $ (467,000) $ (500,000) 7.07% PERSONNEL: Number of FTE positions 0 0 0 Super Valu Development Excelsior Crossings Development 145 CITY OF HOPKINS Special Revenue Fund 232 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Tax Increments $- $- $- $- Interest - - - - Development Fees - - - - Other Miscellaneous - - - - Transfer In - - - - Total Revenues - - - - Expenditures Materials, Supplies and Services Professional & Technical Services - - - - Miscellaneous Other Charges - - - 2,000 Capital Outlay TIF Projects - - - - Total Expenditures - - - 2,000 Excess of Revenues over Expenditures $- $- $- $(2,000) Revenues and Expenditures FUNCTION: 5TH AVENUE FLATS 5th Avenue Flats is a redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. 146 CITY OF HOPKINS FUND 232 – 5TH AVENUE FLATS FUNCTION: Tax Increment Financing PROGRAM: Redevelopment Area –6th & Mainstreet PROGRAM SUMMARY: Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Work with developer on project implementation. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Tax Increments $ - $ - $ - 0.00% Miscellaneous - - 0.00% $ - $ - $ - 0.00% EXPENDITURES: Other Services & Charges $ 2,000 $ 2,000 $ 2,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 2,000 $ 2,000 $ 2,000 0.00% PERSONNEL: Number of FTE positions 0 0 0 Proposed Fifth Avenue Flats project 147 CITY OF HOPKINS Special Revenue Fund 233 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Tax Increments $185,166 $196,216 $184,500 $194,500 5.42% Interest 197 304 500 500 Miscellaneous 93 Transfers In - - Total Revenues 185,363 196,613 185,000 195,000 5.41% Expenditures Materials, Supplies and Services Professional & Technical Services 2,359 139 2,500 2,500 Miscellaneous 3,000 3,000 2,000 2,000 PAYG Note 174,615 277,378 175,500 180,500 2.85% Total Expenditures 179,974 280,517 180,000 185,000 2.78% Excess of Revenues over Expenditures $5,389 $(83,904) $5,000 $10,000 100.00% Revenues and Expenditures FUNCTION: TIF 1-4 MARKETPLACE II The Tax Increment District 1-4 Fund is the redevelopment of several blocks of the downtown business district into a housing and retail development. This fund records the tax increment revenues. 148 CITY OF HOPKINS FUND 233 – TAX INCREMENT 1-4 FUND FUNCTION: Tax Increment Financing PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY: Redevelopment of property between 6th and 8th Avenues into mixed-use apartment, townhome & retail development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go financing to developer as scheduled. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Tax Increments $ 196,216 $ 184,500 $ 194,500 5.42% Miscellaneous 397 500 500 0.00% $ 185,000 $ 195,000 5.41% EXPENDITURES: Other Services & Charges $ 280,517 $ 180,000 $ 185,000 2.78% NET TAX AND GENERAL REVENUE SUPPORTED $ 280,517 $ (5,000) $ (10,000) 100.00% PERSONNEL: Number of FTE positions 0 0 0 149 CITY OF HOPKINS Special Revenue Fund 234 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Tax Increments $- $722,817 $97,000 $975,000 905.15% Interest Transfers In - Total Revenues - 722,817 97,000 975,000 34.89% Expenditures Materials, Supplies and Services Professional & Technical Services - - 500 1,000 100.00% Miscellaneous - - - - PAYG Note - - 94,000 924,000 882.98% Total Expenditures - - 94,500 925,000 878.84% Excess of Revenues over Expenditures $- $722,817 $2,500 $50,000 1900.00% Revenues and Expenditures FUNCTION: TIF 1-5 MOLINE The Tax Increment District 1-5 Fund is the redevelopment of the Johson Building into an luxury apartment building than will help connect a future light rail station to historic downtown Hopkins. This fund records the tax increment revenues beginning in 2019. 150 CITY OF HOPKINS FUND 234 – TAX INCREMENT 1-5 FUND PROGRAM: Moline Redevelopment Project PROGRAM SUMMARY Redevelopment of Johnson Building into luxury apartments. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go financing to developer as scheduled. FY 2019 FY 2020 FY 2021 Audited Approved Approved Actuals Budget Budget REVENUES: Tax Increments $ 722,817 $ 97,000 $ 975,000 905.15% Miscellaneous - - - $ 722,817 $ 97,000 $ 975,000 905.15% EXPENDITURES: Other Services & Charges $ - $ 94,500 $ 925,000 878.84% NET TAX AND GENERAL REVENUE SUPPORTED $ (722,817) $ (2,500) $ (50,000) 1900.00% PERSONNEL: Number of FTE positions 0 0 0 151 CITY OF HOPKINS Special Revenue Fund 250 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Taxes $244,093 $256,396 $325,225 $331,182 1.83% Grants 34,876 88,825 87,000 35,000 -59.77% Charges for Service 575,858 591,063 651,611 615,477 -5.55% Interest 2 75 Other Revenues 32,765 31,048 42,000 22,500 -46.43% Transfers In 86,920 86,920 80,000 80,000 Total Revenues 974,514 1,054,326 1,185,836 1,084,159 -8.57% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 372,158 374,516 419,841 398,182 -5.16% Fringe Benefits 86,565 111,085 105,076 116,572 10.94% Materials, Supplies and Services Professional & Technical Services 199,560 204,639 232,600 223,200 -4.04% Utilities and Maintenance 89,203 83,497 85,900 85,700 -0.23% Operations 92,762 113,611 133,150 104,900 -21.22% City Support Services 9,686 9,569 10,669 11,805 10.65% Supplies and Materials 28,339 44,912 31,900 27,800 -12.85% Capital Outlay Improvements 146,914 37,489 106,700 56,000 -47.52% Total Expenses 1,025,187 979,317 1,125,836 1,024,159 -9.03% Excess (deficiency) of Revenues over Expenditures (50,673) 75,009 60,000 60,000 0.00% FUNCTION: ARTS CENTER Revenues and Expenditures The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 152 CITY OF HOPKINS FUND 250 – ARTS CENTER FUND FUNCTION: Arts Center PROGRAM: Facility Operations and Programming & Promotions Building Community through the Arts by fostering creative expression and providing artistic and educational opportunities for people of all ages. PROGRAM SUMMARY: The Hopkins Center for the Arts is a premiere cultural and artistic destination drawing over 215,000 visitors annually. Its amenities include a 715 seat theater, black-box theater, art gallery, dance studio, classroom, meeting and multipurpose spaces. The Center provides artistic and educational opportunities for people of all ages and abilities, including a concert series of local and national artists, exhibits that are free and open to the public, and ArtStreet, the public art sculpture program. It is also home to tenant partners – Stages Theatre Company and the Hopkins School District. Hopkins Center for the Arts earns revenue through tenant leases, rentals, admission fees, gifts and grants. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to build relationships in our community and collaborate with tenants, partners, businesses and residents to meet City Strategic Plan goals and engage a broad segment of the community. 2. Operate within a balanced budget that maximizes revenues and controls expenses, with the goal of financial sustainability. 3. Increase the fundraising capacity of the Arts Center to address operating and capital needs. 4. Build participation in Center arts activities, including concerts and exhibitions, and explore creative opportunities beyond the walls of the Center. 5. Strengthen the identity and enhance the reputation of the Hopkins Center for the Arts. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Taxes $ 256,396 $ 325,225 $ 331,182 1.83% Intergovernmental 88,825 87,000 35,000 -59.77% Charges for Service 591,063 651,611 615,477 -5.55% Miscellaneous 31,122 42,000 22,500 -46.43% Tranfer In 86,920 80,000 80,000 0.00% $ 1,054,326 $ 1,185,836 $ 1,084,159 -8.57% EXPENDITURES: Personnel Services $ 485,600 $ 524,917 $ 514,754 -1.94% Other Services & Charges 456,228 494,219 453,405 -8.26% Capital Expenditures 37,489 106,700 56,000 $ 979,317 $ 1,125,836 $ 1,024,159 -9.03% NET TAX AND GENERAL REVENUE SUPPORTED $ (75,009) $ (60,000) $ (60,000) 0.00% PERSONNEL: Number of FTE positions 5.28 5.66 5.50 153 CITY OF HOPKINS Internal Service Fund 602 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Taxes $$227,680 $110,000 $200,000 Current Services 487,900 529,264 579,674 631,845 9.00% Intergovernmental Revenue - - - - Interest Earnings - - - - Miscellaneous (36,670)3,256 35,000 35,000 Transfers In 592,000 -240,000 --100.00% Total Revenues 1,043,230 760,200 964,674 866,845 -10.14% Operating Expenses Materials, Supplies and Services - -34,889 35,000 0.32% Professional & Technical Services 1,443 - - - Utilities and Maintenance 1,050 - - - City Support Services 6,333 6,333 6,333 6,333 Total Operating Expenses 8,826 6,333 41,222 41,333 0.27% Non-operating expenses 856,695 875,744 840,000 880,000 4.76% Total Expenses 865,521 882,077 881,222 921,333 4.55% Net Income (Loss)177,709 (121,877) 83,452 (54,488) -165.29% Capital 1,192,205 407,097 791,000 545,499 Revenues and Expenses EQUIPMENT REPLACEMENT BUDGET The Equipment Replacement fund is an internal service fund. It accounts for the acquisition of machinery and equipment. User charges are billed to the various departments. 154 CITY OF HOPKINS FUND 602 – EQUIPMENT REPLACEMENT FUND PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty-year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Update 5-year Equipment Replacement Plan. 2. Analyze future needs. 3. Review revenue structure to accommodate equipment needs as identified in the long-range 20-year plan. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change REVENUES: Property Taxes 227,680 110,000 200,000 Intergovernmental Revenue - - - Charges for Service 529,264 579,674 631,845 Interest - - - Miscellaneous 3,255 35,000 35,000 Transfer In - 240,000 - 760,199 964,674 866,845 EXPENDITURES: Other Services & Charges 6,333 41,222 41,333 Depreciation 875,744 840,000 880,000 Debt Service - - - 882,078 881,222 921,333 NET SOURCE (USE) OF EQUITY $ (121,878) $ 83,452 $ (54,488) Capital Purchases $ 407,097 $ 790,000 $ 545,499 PERSONNEL: Number of FTE positions - - - 155 CITY OF HOPKINS Enterprise Fund 703 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Current Services $1,814,472 $1,864,339 $2,109,004 $2,145,074 1.71% Intergovernmental Revenue - - - - Permits 655 1,084 2,000 2,000 Interest Earnings - - - - Bond Premium 41,427 Miscellaneous 138,899 136,803 145,000 145,000 Total Revenues 1,954,026 2,043,653 2,256,004 2,292,074 1.60% Non-operating Revenues 1,040,548 2,143,524 - - Total Revenues 2,994,574 4,187,176 2,256,004 2,292,074 1.60% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 373,639 354,824 381,580 362,587 -4.98% Fringe Benefits 127,300 121,228 146,309 132,335 -9.55% Materials, Supplies and Services Professional & Technical Services 88,033 545,838 132,600 135,600 2.26% Utilities and Maintenance 410,994 509,038 476,500 476,500 Operations 17,764 24,948 34,450 35,950 4.35% City Support Services 244,584 244,295 275,020 286,649 4.23% Supplies and Materials 61,164 76,629 108,200 108,200 Depreciation 325,897 321,500 325,000 325,000 Total Operating Expenses 1,649,375 2,198,301 1,879,659 1,862,821 -0.90% Non-operating expenses 303,541 441,481 355,439 335,853 -5.51% Total Expenses 1,952,916 2,639,782 2,235,098 2,198,674 -1.63% Net Income (Loss)1,041,658 1,547,394 20,906 93,400 346.76% FUNCTION: WATER Revenues and Expenses The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 156 CITY OF HOPKINS FUND 703 – WATER FUND FUNCTION: Water PROGRAM: Pumps & Wells and Water Distribution PROGRAM SUMMARY: The Pumps & Wells and Distribution program of the Water Utility Fund provides maintenance to the City’s water well pumping system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Produce water supply sufficient to meet the needs of 19,000 people. 2. Flush and check all hydrants annually. 3. Check all wells each day. 4. Test samples each month to ensure safe water supply. 5. Install new valves & hydrants in new construction areas. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $1,869,995 $ 2,111,004 $ 2,147,074 1.71% OPERATING EXPENSES: Personnel Services 476,052 527,889 494,922 -6.25% Other Services & Charges 953,813 1,026,770 1,042,899 1.57% Depreciation Expense 321,500 325,000 325,000 0.00% Operating Income (Loss) 1,751,365 1,879,659 1,862,821 -0.90% NON-OPERATING REVENUES: 2,317,182 145,000 145,000 0.00% NON-OPERATING EXPENSES: (441,481) (355,439) (335,853) -5.51% NET INCOME (LOSS) $1,994,331 $ 20,906 $ 93,400 Capital Outlay/Construction $ 446,936 $ - $ - PERSONNEL: Number of FTE positions 4.79 4.79 4.15 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Gallons of safe drinking water produced (in millions) 579 537 584 575 157 CITY OF HOPKINS Enterprise Fund 707 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Current Services $2,780,289 $2,880,684 $3,052,340 $3,105,587 1.74% Intergovernmental Revenue -212,738 - - Interest Earnings - - - - Miscellaneous Revenue - - - - Total Revenues 2,780,289 3,093,422 3,052,340 3,105,587 1.74% Non-operating revenue 884,031 1,293,950 - - Total Revenues 3,664,320 4,387,372 3,052,340 3,105,587 1.74% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 204,712 195,683 211,477 196,050 -7.29% Fringe Benefits 67,515 65,338 76,196 70,753 -7.14% Materials, Supplies and Services Professional & Technical Services 108,692 90,981 137,000 137,000 Utilities and Maintenance 85,727 49,900 179,500 179,500 Operations 1,503,462 1,649,237 1,549,932 1,498,605 -3.31% City Support Services 163,638 160,498 207,565 214,633 3.41% Supplies and Materials 13,109 11,390 28,300 28,300 Depreciation 306,413 329,238 310,000 346,368 11.73% Total Operating Expenses 2,453,268 2,552,265 2,699,970 2,671,209 -1.07% Non-operating expenses 238,711 371,087 325,771 292,027 -10.36% Total Expenses 2,691,979 2,923,352 3,025,741 2,963,236 -2.07% Net Income (Loss)972,341 1,464,020 26,599 142,351 435.17% FUNCTION: SANITARY SEWER Revenues and Expenses The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 158 CITY OF HOPKINS FUND 707 – SEWER FUND FUNCTION: Sewer PROGRAM: Lift Stations, Collection & Disposal PROGRAM SUMMARY: The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the City’s sanitary sewer lift station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer System for disposal. The Collection & Disposal program of the Sewer Utility Fund provides maintenance to the City’s sanitary sewer system. The system is comprised of sewers, manholes, and lift stations so that sewage may be transported to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Clean 33% of sanitary sewer lines in the City plus monthly checks of manholes in problem areas. 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility mapping system. 5. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 6. Repair or replace manhole cover & casting as needed. 7. Line & repair sewer mains as needed per T.V. reports, also repair of manhole structures. 8. Emergency generators maintenance program. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $2,880,684 $ 3,052,340 $ 3,105,587 1.74% OPERATING EXPENSES: Personnel Services 261,021 287,673 266,803 -7.25% Other Services & Charges 1,775,971 2,102,297 2,058,038 -2.11% Depreciation Expense 329,238 310,000 346,368 11.73% Operating Income (Loss) 2,366,230 2,699,970 2,671,209 -1.07% NON-OPERATING REVENUES: 1,524,442 0 0 NON-OPERATING EXPENSES: (388,202) (325,771) (292,027) -10.36% NET INCOME (LOSS) $1,650,694 $ 26,599 $ 142,351 435.17% Capital Outlay/Construction $ 186,674 $ - $ - PERSONNEL: Number of FTE positions 2.60 2.60 2.24 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Number of Gallons Conveyed (in millions) 614 629 571 597 159 CITY OF HOPKINS Enterprise Fund 717 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Current Services $964,135 $ 983,098 $982,900 $979,400 -0.36% County Grant 21,050 17,867 15,306 14,541 -5.00% Interest Earnings 3,052 6,909 5,000 5,000 Miscellaneous 25,704 2,379 3,000 3,000 Total Revenues 1,013,941 1,010,252 1,006,206 1,001,941 -0.42% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 254,249 259,014 262,677 270,751 3.07% Fringe Benefits 90,509 88,473 99,138 112,122 13.10% Materials, Supplies and Services Professional & Technical Services 141,598 144,477 162,700 159,900 -1.72% Utilities and Maintenance 25,575 187,958 222,470 221,200 -0.57% Operations 6,529 3,767 8,285 7,540 -8.99% City Support Services 120,817 116,944 160,579 147,979 -7.85% Supplies and Materials 18,547 49,657 7,200 15,700 118.06% Depreciation 59,147 69,054 60,000 68,028 13.38% Capital -5,535 - - Total Operating Expenses 716,971 924,879 983,049 1,003,220 2.05% Non-operating expenses 25,000 25,000 25,000 25,000 Total Expenses 741,971 949,879 1,008,049 1,028,220 2.00% Net Income (Loss)271,970 60,374 (1,843) (26,279) 1325.90% Revenues and Expenses FUNCTION: REFUSE The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 160 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Bulk Collection PROGRAM SUMMARY: The Bulk Collection program of the Refuse Utility Fund is a user fee based service that provides bulk item pickup for larger items. Pick ups are scheduled on a call-in basis and take place Thursdays throughout the year. A bulk item drop off event is provided twice per year (spring & fall). FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ 25,356 $ 19,400 $ 21,400 10.31% OPERATING EXPENSES: Personnel Services 32,296 28,243 30,161 6.79% Other Services & Charges 32,915 31,395 26,540 -15.46% Operating Income (Loss) 65,211 59,638 56,701 -4.92% NET INCOME (LOSS) $ (39,855) $ (40,238) $ (35,301) -12.27% PERSONNEL: Number of FTE positions 0.24 0.24 0.26 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Review and expand user fee based system. (Council Approval Required) 2. Improve drop off procedures and increase efficiency at our bi-annual drop offs. 161 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Yard Waste/Leaf Collection PROGRAM SUMMARY: The Yard Waste/Leaf Collection program of the Refuse Utility Fund is a user fee based service that provides bagged yard waste and leaf collection weekly, mid-April through November, for Hopkins residential refuse customers. (Subject to change upon Council review.) A free drop-off site is also available to Hopkins residents three times a week. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ 9,758 $ 10,000 $ 10,000 0.00% OPERATING EXPENSES: Personnel Services 48,899 58,994 61,813 4.78% Other Services & Charges 35,365 30,976 21,232 -31.46% Operating Income (Loss) 84,263 89,970 83,045 -7.70% NET INCOME (LOSS) $ (74,505) $ (79,970) $ (73,045) -8.66% PERSONNEL: Number of FTE positions 0.53 0.53 0.56 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor usage of free residential drop off site. 3. Track impact of curbside fee increase and compostable bag requirement. 162 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Recycle PROGRAM SUMMARY: The Recycle program of the Refuse Utility Fund provides bi-weekly single stream recycle collection for 2,990 residences in the City Service area. Collection is provided by a private licensed hauler who is contracted by the City. Commercial and multi-family properties are required to contract independently for recycling services. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ 191,561 $ 187,206 $ 186,441 -0.41% OPERATING EXPENSES: Personnel Services 49,329 51,934 53,708 3.42% Other Services & Charges 138,994 156,833 157,350 0.33% Operating Income (Loss) 188,323 208,767 211,058 1.10% NON-OPERATING REVENUES: 271 1,600 1,600 0.00% NET INCOME (LOSS) $ 3,510 $ (19,961) $ (23,017) 15.31% PERSONNEL: Number of FTE positions 0.55 0.55 0.55 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Monitor the Single Stream Recycling Program and work with residents to increase the volume of waste recycled. 2. Verify compliance of commercial and multi-family properties. 3. Continue to promote waste abatement through public awareness campaigns and educational presentations. 163 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Brush Service PROGRAM SUMMARY: The Brush Service program of the Refuse Utility Fund is a user fee based service that provides for the collection of curbside brush weekly on a call-in basis on Tuesdays throughout the year. Free yard waste/brush drop off is offered three times per week from mid-May through November. (Subject to change upon Council review.) FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ - $ - $ - 0.00% OPERATING EXPENSES: Personnel Services 37,769 35,403 37,482 5.87% Other Services & Charges 19,646 27,068 27,332 0.98% Operating Income (Loss) 57,415 62,471 64,814 3.75% NET INCOME (LOSS) $ (57,415) $ (62,471) $ (64,814) 3.75% PERSONNEL: Number of FTE positions 0.30 0.30 0.35 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor impact of curbside brush pick-up fee increase on program usage. 3. Continue free residential drop off system. 164 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Organics PROGRAM SUMMARY: Organic recycling is a shared drop-off facility available to Hopkins and Minnetonka refuse customers. Organics can be dropped off 24/7 at the facility. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ - $ - $ - OPERATING EXPENSES: Personnel Services - - Other Services & Charges 2,620 2,400 -8.40% Operating Income (Loss) - 2,620 2,400 -8.40% NON-OPERATING REVENUES: - - - NET INCOME (LOSS) $ - $ (2,620) $ (2,400) -8.40% PERSONNEL: Number of FTE positions 0 0 0 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to provide an option for organic recycling to customers. 2. Prepare to for curbside organic recycling service to begin on January 1, 2022 165 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Disposal PROGRAM SUMMARY: The Disposal program of the Refuse Utility Fund provides automated refuse collection by City refuse trucks and personnel. Residential Refuse is collected from roll out carts with a fully automated truck on one of four designated route days. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ 775,006 $ 783,000 $ 777,500 -0.70% OPERATING EXPENSES: Personnel Services 179,195 187,241 199,709 6.66% Other Services & Charges 281,418 312,342 317,465 1.64% Depreciation Expense 69,054 60,000 68,028 13.38% Operating Income (Loss) 529,667 559,583 585,202 4.58% NON-OPERATING REVENUES: 0 5,000 5,000 0.00% NON-OPERATING EXPENSES: (25,000) (25,000) (25,000) 0.00% NET INCOME (LOSS) $ 220,339 $ 203,417 $ 172,298 -15.30% Capital Outlay/Construction $ - $ - $ - 0.00% PERSONNEL: Number of FTE positions 1.76 1.76 1.85 166 CITY OF HOPKINS Enterprise Fund 740 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Current Services $806,605 $806,192 $785,332 $782,332 -0.38% Miscellaneous 1,681 Interest Earnings 4,357 7,931 8,200 7,000 -14.63% Total Revenues 810,962 815,804 793,532 789,332 -0.53% Non-operating revenues 334,397 518,496 - - Total Revenues 1,145,359 1,334,300 793,532 789,332 -0.53% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 51,960 53,782 57,171 60,117 5.15% Fringe Benefits 20,882 25,565 18,433 20,931 13.55% Materials, Supplies and Services Professional & Technical Services 1,960 161,382 14,000 14,000 Utilities and Maintenance -474 20,000 27,500 37.50% City Support Services 55,685 55,685 - - Operations 2,810 2,775 4,000 3,500 Supplies and Materials 978 3,562 2,100 2,400 14.29% Depreciation 274,070 280,270 275,000 300,804 9.38% Total Operating Expenses 408,345 583,495 390,704 429,252 9.87% Non-operating expenses 323,899 194,851 231,240 167,717 -27.47% Total Expenses 732,244 778,347 621,944 596,969 -4.02% Net Income 413,115 555,953 171,588 192,363 12.11% The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. FUNCTION: STORM SEWER Revenues and Expenses 167 CITY OF HOPKINS FUND 740 – STORM SEWER FUND FUNCTION: Storm Sewer PROGRAM: Sewer Maintenance PROGRAM SUMMARY:The Sewer Maintenance program of the Storm Sewer Fund maintains all storm sewer lines and storm inlets to assure adequate run-off. Creeks and ditches must be monitored to assure proper run-off and weed and pollution control. This work is done with staff and equipment from the Water & Sewer and Street & Sanitation divisions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Continue upgrades of storm water system including catch basin maintenance upgrades and open drainage ditch maintenance. 2. Continue reviewing overall city storm water drainage system and meet all requirements of city’s National Pollution Discharge Elimination System (NPDES), Phase II Storm Water Pollution Prevention Plan (SWPPP). 3. Continue grit chamber cleaning 4. Clean catch basins and inspect for repair. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ 806,192 $ 785,332 $ 782,332 -0.38% OPERATING EXPENSES: Personnel Services 79,347 75,604 81,048 7.20% Other Services & Charges 70,540 40,100 47,400 18.20% Depreciation Expense 280,270 275,000 300,804 9.38% Operating Income (Loss) 430,156 390,704 429,252 9.87% NON-OPERATING REVENUES: 528,108 8,200 7,000 -14.63% NON-OPERATING EXPENSES: (194,851) (231,240) (167,717) -27.47% NET INCOME (LOSS) $ 709,292 $ 171,588 $ 192,363 12.11% Capital Outlay/Construction $ 153,339 $ - $ - PERSONNEL: Number of FTE positions 0.63 0.63 0.66 168 CITY OF HOPKINS FUNCTION: PAVILION Revenues and Expenses Enterprise Fund 747 Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Rental $392,964 $483,856 $477,000 $483,500 1.36% Interest Earnings 292 11 - - Miscellaneous 2,228 785 4,500 - -100.00% Total Revenues 395,484 484,652 481,500 483,500 0.42% Non-operating revenues 5,858,387 40,054 300,000 340,000 13.33% Total Revenues 6,253,871 524,706 781,500 823,500 5.37% Operating Expenses Salaries, Wages and Benefits Salaries and Wages 217,402 241,138 263,285 271,445 3.10% Fringe Benefits 87,816 83,397 83,167 90,036 8.26% Materials, Supplies and Services Professional & Technical Services 4,635 7,523 7,500 7,275 -3.00% Utilities and Maintenance 129,152 59,797 103,300 110,125 6.61% Operations 2,555 2,292 2,100 1,815 -13.57% City Support Services 14,535 14,865 18,083 28,764 59.07% Supplies and Materials 26,241 23,463 18,300 17,500 -4.37% Depreciation 87,099 475,064 100,000 480,000 380.00% Total Operating Expenses 569,435 907,538 595,735 1,006,960 69.03% Non-operating expenses 3,330,008 159,374 106,521 91,400 -14.20% Total Expenses 3,899,443 1,066,912 702,256 1,098,360 56.40% Net Income (Loss)2,354,428 (542,207) 79,244 (274,860) -446.85% The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 169 CITY OF HOPKINS FUND 747 – PAVILION FUND FUNCTION: Pavilion PROGRAM: Ice, Turf, Dry Floor, & Room Rental PROGRAM SUMMARY: The rental programs of the Pavilion Fund manages and schedules public use groups and maintenance for the ice arena/pavilion which will utilize the facility to its maximum potential and generate adequate revenue to offset the cost of operations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2021: 1. Create and market programs, events, and opportunities to safely increase the community’s recreational options. 2. Meet with local athletic associations to gather input and ideas on how we can better serve their needs. 3. Develop and utilize energy saving procedures and equipment. Evaluate environmental impact of current facility supplies and replace with eco-friendly products where appropriate 4. Operate a budget to maximize revenues. FY 2019 FY 2020 FY 2021 Audited Approved Approved Percent Actuals Budget Budget Change OPERATING REVENUES: $ 484,652 $ 481,500 $ 483,500 0.42% OPERATING EXPENSES: Personnel Services 324,533 346,452 361,481 4.34% Other Services & Charges 187,919 149,283 165,479 10.85% Depreciation Expense 475,064 100,000 480,000 380.00% Operating Income (Loss) 987,516 595,735 1,006,960 69.03% NON-OPERATING REVENUES: 40,054 300,000 340,000 13.33% NON-OPERATING EXPENSES: (99,807) (106,521) (91,400) -14.20% NET INCOME (LOSS) $ (562,617) $ 79,244 $ (274,860) -446.85% Capital Outlay/Construction $ (20,413) $ - $ - PERSONNEL: Number of FTE positions 2.90 2.90 2.90 PERFORMANCE MEASURES: 2018 2019 2020 2021 Key Measures: Actual Actual Estimated Projected Hours of Ice time rented 1,213 1,357 Not Available Not Available Hours of all other rentals 9,317 14,735 Not Available Not Available 170 CITY OF HOPKINS Actual Actual Budget Budget Percent 2018 2019 2020 2021 Change Revenues Property Tax $3,074,029 $3,594,588 $4,250,154 $4,108,650 -3.33% Special Assessments 923,872 987,052 660,764 715,889 8.34% Interest 8,648 31,014 14,604 5,889 -59.68% Bond Proceeds 6,715,000 13,565,000 - - Transfer In 2,068,636 3,734,647 2,401,431 2,864,634 19.29% Bond Premium 168,423 1,292,974 Total Revenues 12,958,608 23,205,275 7,326,953 7,695,062 5.02% Expenditures Bond expenditures Professional Fees 249,562 1,044,064 - - Principal 3,890,000 6,475,000 4,730,000 5,600,000 18.39% Interest 1,472,826 1,660,844 2,081,921 1,870,455 -10.16% Fiscal charges 6,552 - 26,000 - -100.00% Bond Discount - - - - Deposit to Escrow Account - - - - Transfer Out 6,604,437 14,317,613 - - Total Expenditures 12,223,377 23,497,521 6,837,921 7,470,455 9.25% Sources (Uses) of Fund Balance 735,231 (292,246) 489,032 224,607 -54.07% Revenues and Expenditures FUNCTION: DEBT SERVICE Debt Service funds finance and account for the payment of interest and principal on all general obligation debt other than debt issued for an enterprise fund. In January 2014 the City's credit rating was upgraded to a AA+ following an interium rating review. This rating has been reaffirmed each year since. 171 CITY OF HOPKINS GLOSSARY OF TERMS Accrual Basis – The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or the payment of cash may take place, in whole or in part, in another accounting period. Adopted Budget – The financial plan of revenues and expenditures for a fiscal year as adopted by the City Council. Appropriation – A specific amount of money authorized by the City Council, generally during adoption of the annual budget, used to make expenditures for specific purposes. Ad Valorem Tax – Money collected from all the real property within the City based upon the value of the property. Annual Budget – The budget authorized by resolution of the City Council for the fiscal year. Appropriation – Authorization by the City Council to incur obligations and spend City funds. Appropriations are usually made for fixed amounts and are typically granted for one year. Artstreet - Hopkins Artstreet is an ongoing program established in 2010 to showcase original art works in an accessible setting. A collaboration among the City of Hopkins, the Hopkins Business & Civic Association and the Friends of the Hopkins Center for the Arts, this project is part of a long- term vision for incorporating public art into Hopkins and enriching the lives of its residents and visitors. This project is made possible, in part, by funds provided by the Metropolitan Regional Arts Council through an appropriation by the Minnesota Legislature. Assets – Property owned by a government which as a monetary value. Assessed Valuation – A value established by the City Property Appraiser for all real or personal property for use as a basis for levying property taxes. Balanced Budget – A budget in which expenditures are equal to income. Bond – A written promise to pay a sum of money on a specific date at a specified interest rate as detailed in a bond resolution. Bond Proceeds – Funds received from the sale of any bond issue. Budget – The financial plan for a specific period of time that identified proposed expenditures and the sources of revenue to pay for them. Budget Adjustment – A revision to the adopted budget occurring during the affected fiscal year as approved by the City Council by an amendment or a transfer. Budget Documents – The official written statement prepared by the Finance Director and supporting staff, which presents the proposed budget to the legislative body. Budget Calendar – The schedule of key dates involved in the process of adopting and executing an adopted budget. 172 CITY OF HOPKINS Budget Message – The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, as well as the views and recommendations of the City Manager. CDBG Community Development Block Grant – This fund receives and expends the City’s allocation of the Federal Community Development Block Grant Program money. Capital Asset – Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Improvement Program (CIP) – A five year schedule of capital improvement projects and the means of financing them. This is a flexible budget document that is used as a planning tool for needed improvements. Amounts approved in the CIP are considered guidelines and are not officially adopted as budgeted amounts until they are incorporated in the operating budget of one of the City’s funds. Capital Outlay – Expenditures that result in the acquisition of fixed assets that have a value over $5,000 and a useful life greater than one year. Capital Project Funds – The funds that account for all resources unused for the acquisition or construction of capital facilities, except those financed by Proprietary Funds. Certified Levy – Total tax levy of a jurisdiction, which is certified to the County Auditor. CERT – Community Emergency Response Team. The CERT Program consists of a group of volunteers who have been trained to assist with basic disaster response such as fire safety, light search and rescue, team organization and disaster medical operations. Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services – The cost of items related to a contractual agreement. Examples would be professional services such as legal, engineering, actuarial and consultants. Court Fines and Forfeits – Fines imposed on individuals by the courts for various illegal acts performed within the City. Debt Service Funds – the funds that account for the payment of principal and interest on outstanding debt for the City. Deficit – The excess of expenditures over revenues. Department – Basic organizational unit of City government, responsible for carrying out a specific function. Depreciation – Expenditures incurred when spreading the cost of an asset over its estimated useful like rather than deducting the entire cost in the year the asset is purchased. Enterprise Fund – The funds that account for the financing of self-supporting activities of governmental units and render services to the general public based on user charges. 173 CITY OF HOPKINS Estimated Market Value – Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. Expenditure – Decreases in financial resources other than through interfund transfers. Fiscal Disparities – The program created by the Metropolitan Fiscal Disparities Act which shares growth in the commercial-industrial tax base in the seven county metropolitan area. Forty percent of the value of new commercial-industrial development since 1971 is pooled and redistributed among the 300 taxing districts to address uneven business development throughout the region. Fiscal Year – For budgeting purposes the City’s fiscal year is the calendar year. Fixed Asset – Purchases of a long-term nature, which are to be held and used. Examples would be land, buildings, machinery, furniture and equipment. FTE – Equivalent of one employee working fulltime, or 2.080 hours per year. A FTE can be filled by any number of employees whose combined hours total 2,080 per year. Fund – A separate accounting entity, with a set of self-balancing accounts for recording the collection of revenues and the payment of expenditures to carry out a specific function. Fund Balance – Fund Balance is the difference between assets and liabilities in governmental funds (i.e. general fund, special revenue funds, capital project funds, debt service funds and permanent funds). Non-spendable Fund Balance – Describes the amount of a fund balance that cannot be spent because it is either not in spendable form or there is a legal or contractual requirement for the funds to remain intact. Spendable Fund Balance – Describes the amount of fund balance that is available for appropriation based on the constraints that control how specific amounts can be spent. Typically, a significant portion of a government’s spendable resources can be spent only for specified purposes. The following categories define the revenue source and the level of force of the constraint on spending Restricted Fund Balance – The restricted fund balance category includes the portion of the spendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes Committed Fund Balance – The committed fund balance classification includes the portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to year end but the amount can be determined at a later date. Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. 174 CITY OF HOPKINS Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. GASB (Governmental Accounting Standards Board) – It is the highest source of accounting and financial reporting guidance for state and local governments. General Fund – The largest fund in the City, the General Fund accounts for most of the City’s financial resources. General Fund revenues include: property taxes, licenses and permits, local taxes, service charges and other types of revenues. This is the fund that accounts for the revenues and expenditures necessary to deliver basic operating services: police, fire, finance, parks, public works, etc. General Obligation Bonds – When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds with are to be repaid from taxes and other general revenues. GFOA (Government Finance Officers Association) – the professional association of state and local finance officers in the United States who are dedicated to the sound management of government financial resources. The association sets program standards for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Award. Governmental Funds – The General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. HBCA – Hopkins Business and Civic Association, ensures a strong economic development climate, provides promotional activities, encourages community involvement and fosters a sense of community among individuals, civic organizations and businesses Hopkins in Motion – This annual event focuses on the walkability/ livability of Hopkins and encourages participants to be active while having fun. Indirectly Funded Amount – The portion of appropriates not funded by program revenues such as fees and grants. This portion is funded from shared revenues such as property tax, governmental revenues or a city-wide fee not directly attributed to any one program. Interest Earnings – Interest received from the investment of cash in a fund. Intergovernmental Revenues – Funds received from State or Federal governments in the form of grants or shared revenues for various activities. Internal Service Funds – The funds within the Proprietary Fund that account for the financing of goods or services provided by one department or agency to other departments or agencies of a government. IT – Information Technology Department of the city. This department provides computer technology support to all city departments. 175 CITY OF HOPKINS Levy – To impose taxes, special assessments or service charges. Licenses – Revenues received by the issuance of various licenses that are granted to various businesses in the City. Local Government Aid (LGA) – Money given to the City from the State based on a formula that was originally designed to provide tax relief and equalization among cities. LMC – The League of Minnesota Cities is a membership organization dedicated to promoting excellence in local government. The League serves its more than 800 member cities through advocacy, education and training, policy development, risk management, and other services. LRT – Light Rail Transit, a commuter train system in the Minneapolis/St. Paul metropolitan area. Major Account Series – Three classifications of expenditures made by the City. Salaries, Wages and Benefits – Costs relating to employees or temporary help, including fringe benefits. Materials, Supplies and Services – Costs relating to articles of non-durable nature, such as office supplies; professional and technical services; utilities and maintenance; operations and city support services. Capital Outlay – Costs of durable goods such as furniture and equipment. Reimbursed Expenditures – Offset against costs for services provided by one fund to another fund. Major Fund – Governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. Market Value Homestead Credit (MVHC) – Started in 2002, this is the primary State program for property tax relief. The State remits a portion of sales and income taxes to local government to assist in keeping property taxes down. MCES – Metropolitan Council Environmental Services provides the City with wastewater service. Miscellaneous Revenue – Funds collected from various sources generally on a non-recurring basis. Modified Accrual Basis – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Net Assets – The equity associated with general government less liabilities. Non-major Fund – A governmental fund or enterprise fund that is reported in total in the basic fund financial statements. Operating Expenditure – Expenditure classifications based upon the types of categories of goods and services purchased. Typical objects include: personal services (salaries and wages); contracted services (utilities, maintenance, contracts, travel); supplied and materials; and capital outlay. 176 CITY OF HOPKINS Operating Budget – Financial plan for the fiscal year, which authorizes proposed personnel complements, expenditures and the revenues to finance them. Penalties – Charges to utility customers caused by late payment of their water, sewer, and refuse bills. Permits – Revenue derived from various permits as defined in the City Code, for the performance of a specific action. For example, building a house. Personal Services – The cost of salaries and wages paid to employees as well as the fringe benefits associated with employment (i.e. Social Security, PERA, health insurance, life insurance, etc.). Program – Within each Department are several divisions or programs in the City, each charged with carrying out a specific function. Proposed Budget – Budget as submitted by the City Manager to the City Council. Proprietary Funds – The funds that account for government operations financed and operated in a manner similar to a private business. Refuse Service – Revenue incurred from the sale of trash pick-up and disposal, leaf pick-up, yard waste and recycling to residential customers of the City. Retained Earnings – An equity account reflecting the accumulated earnings of the City’s Proprietary (Enterprise) Funds. Sewer Service – Revenue incurred from the sale of sanitary sewer service to customers of the utility. Special Assessment – Receipts from assessments placed on property within the City for public improvements that have benefited that property. Special Revenue Funds – A fund that accounts for revenues derived from specific taxes or other earmarked revenue sources. Storm Sewer Sales – Revenue derived from a storm sewer utility fee assessed property owners based on the amount of impervious surface on their property. Revenues are used to maintain and improve the City’s storm sewer system. SWLRT – Southwest Light Rail Transit. A commuter train system in the Southwest area of the Minneapolis/St. Paul metropolitan area. Tax Capacity – County tax base for the purposes of levying property taxes. Properties are assigned rates at which their values will be converted into the tax base, (see tax classification rate). Tax Capacity Rate – Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. Tax Classification Rate – Rates at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type. 177 CITY OF HOPKINS Tax Increment Financing – Financing tool originally intended to combat severe blight in areas which would not be redeveloped “but for” the availability of government subsidies derived from locally generated property tax revenues. Tax Increments – The value of local taxes collected on a redeveloped or developed property, above the base year taxes. TIF – An abbreviation for Tax Increment Financing. TOD – Transit Orientated Development. A term used to describe development surrounding Light Rail Transit. Transfers – Funds transferred between City funds. Truth-in-Taxation – Procedures adopted by the 1998 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. These procedures are revised annually. Truth-in-Taxation Public Hearing – Statutory requirement for most local governments to hold public hearings on their proposed budgets and property tax levies. Water Sales – Revenue earned from the sale of water to customers of the utility. Working Capital – Current assets minus current liabilities. This measure is used as a gauge in determining appropriate fund balances. 178