VII.3. Approval of Proposed 2022 Levy, Proposed 2022 General Fund Budget and Set Budget Meeting Date; BishopSeptember 7, 2021 Council Report 2021-079
APPROVE PROPOSED 2022 LEVY, PROPOSED 2022 GENERAL
FUND BUDGET AND SET BUDGET MEETING DATE
Proposed Action.
Staff recommends that the Council approve the following motion: Approve Resolution 2021-048
“Approving proposed 2022 tax levy, debt service levies at levels under those required in bond
covenants, proposed general fund budget, and setting budget meeting dates”.
Adoption of resolution 2021-048 will set a maximum tax levy for 2022, will set debt levies at
amounts sufficient to pay debt service requirement taking into consideration other revenue
sources and fund reserves, approve a proposed 2022 general fund budget and set the Truth in
Taxation hearing for Monday, December 6, 2021.
Overview:
The City is required to certify a proposed tax levy and submit to Hennepin County by September
30th. Approval could happen on September 7th or 21st. This will be the maximum levy for 2022
and can only be reduced. The certified levy amount is also used for truth in taxation notices.
The City must hold a public hearing on the budget between November 25th and December 28th.
The proposed date of December 6th would allow time to consider comments heard at the public
hearing before passing a final tax levy and budget. The date does not conflict with public
hearings of Hopkins School District or Hennepin County.
A proposed tax levy and budget has been prepared and reviewed. Adoption of the final budget
will occur in December 2021 following the public hearing.
Supporting Information:
• Overview of Preliminary Tax Levy and General Fund Budget
• 2022 Preliminary General Fund Budget
• 2022 Tax Levy Summary
• Truth in Taxation Insert
• 2022 Budget Preparation Schedule
• Resolution 2021-048
________________________________________
Nick Bishop, Finance Director
Overview of Preliminary Tax Levy and General Fund Budget
A draft version of the 2022 Budget and Tax Levy was prepared by staff and presented to City
Council on July 13th. The City also hosted a budget engagement session on August 16th that
reviewed a similar version of the budget and tax levy. Local Government Aid amounts were
certified and published the last week in July. We have incorporated the certified amount of
$880,066 in this budget. This is an increase of $26,395 over the draft budget presented on July
13th and results in a reduction to the tax levy of the same amount.
2022 General Fund Budget
The proposed 2022 General Fund Budget will meet the needs of the community and provide the
services residents have come to expect. The budget being presented restores previous reductions
made for crack sealing, tree re-planting and pole painting.
The General Fund budget is balanced. Revenues and expenditures are both set at $16,210,954, a
$460,116 or 2.92% increase from 2021. The general fund tax levy needed to support this budget
is $13,257,073, a $448,521 or 3.50% increase from 2021.
2022 Tax Levy
The 2022 Tax Levy has been prepared based on debt service needs, prior year ERP/CIP
documents and initial budgets for special revenue funds. The levy being presented restores
reductions made for Burnes Park debt service, capital improvements and equipment. The total
tax levy is $18,409,708, this is a $621,324 or 3.49% increase from 2021. Based on preliminary
tax capacity information, city taxes on a median value home ($315,000) would be $2,037, which
is a $182 increase from 2021.
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2022
Proposed
September 7, 2021
Department 2021 Budget 2022 Budget
% Increase
(Decrease)
Property Taxes 12,893,552 13,342,073 3.48%
Intergovernmental Revenue
Local Government Aid 853,671 880,066
Intergovernmental Revenue - Other 621,000 622,000
Total Intergovernmental Revenue 1,474,671 1,502,066 1.86%
Licenses, Permits & Fines
Court Fines & Penalties 176,000 176,000
Building Permits & Inspections 479,300 475,500
Inspection Fines & Citations 6,000 2,500
City Clerk - Business Licenses 7,000 7,000
PD - Liquor, Animal Licenses & Penalties 97,800 98,300
Fire - Licenses & Permits 300 2,300
Public Works - Licenses & Permits 19,415 19,415
Planning & Zoning - Licenses & Permits 1,000 1,000
Total Licenses, Permits & Fines 786,815 782,015 -0.61%
Charges for Service
Finance Department 5,500 5,500
Assessing 3,000 3,000
Inspections 103,900 109,400
Police 35,000 35,000
Fire 10,500 10,500
Public Works 3,150 3,150
Activity Center 67,500 90,000
Total Charges for Service 228,550 256,550 12.25%
Miscellaneous Revenue
Franchise Fees 296,200 296,200
Miscellaneous 15,250 15,250
Finance Department 2,000 3,000
Police 500 500
Fire 3,500 3,500
Public Works 5,300 5,300
Activity Center 14,500 4,500
Community Development 30,000 -
Total Miscellaneous 367,250 328,250 -10.62%
Total Revenues 15,750,838 16,210,954 2.92%
City of Hopkins
General Fund Expenditure Budget
For the Year Ending December 31, 2022
Proposed
September 7, 2021
Department 2021 Budget 2022 Budget
% Increase
(Decrease)
City Council 102,095 104,699 2.55%
Administrative Services 866,311 920,069 6.21%
Finance 426,278 454,887 6.71%
Legal 200,000 225,000 12.50%
Municipal Building 390,560 383,927 -1.70%
Assessing 245,920 267,914 8.94%
City Clerk 176,656 217,382 23.05%
Inspections 879,588 908,710 3.31%
Police 6,242,453 6,388,375 2.34%
Fire 1,566,528 1,615,798 3.15%
Public Works 3,469,191 3,551,941 2.39%
Recreation 291,339 295,457 1.41%
Activity Center 456,798 465,998 2.01%
Planning & Zoning 233,000 203,108 -12.83%
Community Development 114,921 118,489 3.10%
Tuition Reimbursement 19,200 19,200 0.00%
Contingency 50,000 50,000 0.00%
Transfer to Other Funds 20,000 20,000 0.00%
Total Expenditures 15,750,838 16,210,954 2.92%
City of Hopkins
Tax Levy
For the Year Ending December 31, 2022
Proposed
September 7, 2021
Actual Proposed % Increase
Purpose FY2021 FY2022 (Decrease)
General Operations
General Fund 12,808,552 13,257,073 3.50%
Capital Levy - 200,000 100.00%
Arts Center 331,182 339,317 2.46%
Pavilion Fund 340,000 340,000 0.00%
Equipment Replacement 200,000 250,000 25.00%
Total General Operations 13,679,734 14,386,390 5.17%
Debt Levy 4,108,650 4,023,318 -2.08%
Total Levy 17,788,384 18,409,708 3.49%
2022 Proposed Tax Levy
On September 7, 2021 City Council adopted a 2022 proposed tax levy of $18,409,708 or a 3.49 percent
increase from 2021. The City Council will meet and discuss the proposed tax levy throughout the fall.
The final levy adopted in
December must be at or
lower than this amount.
The levy provides for the
continuation of
outstanding customer
service by City workers,
exceptional police and fire
protection and helps
maintain a vibrant,
authentic downtown.
The tax levy supports the
services listed in the chart
to the right:
Proptery Tax Overview
The City portion of your property taxes may go up or down at a
different rate than the City’s overall tax levy. This is due to several
factors, including the change in the value of your property and the
changes in the values of other properties in Hopkins.
Your property taxes are divided among several taxing entities. In 2021,
approximately 43 percent of your taxes went toward City Services and
57 percent to other taxing jurisdictions.
How Can I participate in
the Budget Process?
Public participation is an important part of establishing a budget that
meets the needs of our community.
The City previously hosted a budget engagement session on August 16. The session was recorded and
available for viewing on the City’s website at www.hopkinsmn.com/466/City-Budget-Process.
The Hopkins City Council will hold a public hearing Monday, December 6th, to give taxpayers the
opportunity to comment on the proposed budget and tax levy. Written comments may also be submitted to
the City in advance and can be sent to nbishop@hopkinsmn.com or through the City’s website at
www.hopkinsmn.com/466/City-Budget-Process.
The final budget and tax levy will be approved by City Council on December 6, 7 or 21.
Activity
Center
1.8%
Capital Projects
& Debt
25.2%
General
Govt
13.9%
Public
Safety
37.4%
Public
Works
11.3%
Parks
& Rec
6.8%
Hopkins
Pavilion
1.8%
Art
Center
1.8%
Property Taxes Paid (2021)
City of
Hopkins/HRA
43.3%
Hopkins
School District
26.5%
Hennepin
County
24.5%
Metro Taxing
District
1.5%
Other Special
Taxing Districts
4.2%
City of Hopkins
2022 Budget/Tax Snapshot
DRAFT
City of Hopkins
2022 Budget Preparation Schedule for City Council
The following table outlines the tentative schedule for discussions on important aspects of the City’s Budget.
Meeting Date Meeting Type Subject Details
January 19 Regular Meeting Finance Update -Overview of Community Engagement Plan
and Budget Preparation Schedule for 2022
Budget
January-
February
Regular
Meetings &
Work Sessions
Department Updates -Planning and Development
-Police and Fire
-Public Works
-Community Services and Administration
March 16 Work Session Financial Management Plan -Presentation on FMP
-Decision on Infrastructure Projects in 2022
-Decision on Burnes Park Debt Service in 2022
April-July N/A Internal Preparations -2020 Audit Ongoing
-Departments Prepare Budgets, Equipment
Replacement and Capital Improvement
Schedules
July 13 Work Session Review 2022 Tax Levy and
General Fund Budget
-First Draft
August 10 Work Session Review Capital Improvement Plan
(CIP) and Equipment
Replacement Plan (ERP)
-Park Dedication Fund
-Permanent Improvement Revolving Fund
(Street Projects)
-Equipment Replacement Levy
City of Hopkins
2022 Budget Preparation Schedule for City Council
Meeting Date Meeting Type Subject Details
August 16
(Monday)
Budget
Engagement
Session
Review 2022 Tax Levy and
General Fund Budget
-Presentation
-Question and Answer Session
September 7 Regular Meeting Review 2022 Tax Levy and
General Fund Budget
-Preliminary for approval on September 21
September 21 Regular Meeting Approve Preliminary Tax Levy
and General Fund Budget
-Must be approved by September 30
October 12 Work Session Review Enterprise Fund Budgets
and Utility Rates
-Water -Sewer
-Storm Sewer -Refuse
-Pavilion
November 3 Regular Meeting Approve CIP, ERP and Utility
Rates
November 9 Work Session Review Special Revenue Budgets
and Activity Center Budget
-Chemical Assessment -Parking
-Economic Development -Depot
-Communications -Arts Center
-Activity Center
December 6
(Monday)
Regular Meeting Truth in Taxation Hearing -Overview of 2022 Budget and Tax Levy
-Public Comment
December 7 Regular Meeting Approve Final Budget & Tax Levy
December 21 Regular Meeting Approve Final Budget & Tax Levy -Last scheduled meeting to approve
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2021-048
RESOLUTION APPROVING THE PROPOSED 2022 TAX LEVY, SETTING
DEBT SERVICES LEVIES AT LEVELS UNDER THOSE REQUIRED IN THE BOND
COVENANTS, APPROVING THE PROPOSED 2022 BUDGET, AND
SETTING BUDGET MEETING DATE
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA,
That the following sums be levied for 2022 upon the taxable property in the City of
Hopkins, for the following purposes.
General Levy General $14,386,390
Special Levies
Debt Levies
2014A GO Bonds 97,000
2014B GO Refunding Bonds 675,000
2015A GO Street Reconstruction Bonds 250,000
2015B GO Tax Abatement Bonds 125,000
2016A GO Improvement Bonds 100,000
2016B GO Tax Abatement Bonds 38,041
2016C Equipment Certificates 240,000
2017A GO Street Reconstruction Bonds 915,000
2017B GO Tax Abatement Bonds 156,130
2018A GO Equipment Certificates 82,582
2018A GO Improvement Bonds 425,000
2019A GO Bonds 342,097
2019B GO Refunding Bonds 95,000
2020A GO Bonds 150,000
2020B GO Refunding Bonds 332,468
Subtotal Special Levies 4,023,318
Total Levy $18,409,708
That based upon staff analysis of specials assessments currently levied for Permanent
Improvement Bonds, alternative revenue sources for the Capital Improvement Bonds and
Equipment Certificates, and available reserves within all debt service funds listed below, that the
debt service levies for 2022 for the following issues be levied at amounts less than that provided by
the bond covenants.
Net Debt
Bond Issue Service Levy
$1,895,000 G.O. Improvement Bonds of 2014A (B2964) $ 97,000
$6,345,000 G.O. Refunding Bonds of 2014B (B2983) $ 675,000
$4,100,000 G.O. Street Reconstruction bonds of 2015A (B3031) $ 250,000
$2,940,000 G.O. Tax Abatement Bonds of 2015B $ 125,000
$4,335,000 G.O. Improvement Bonds of 2016A (B3123) $ 100,000
$11,795,000 G.O. Street Reconstruction Bonds of 2017A (B3198) $ 915,000
$3,170,000 G.O. General Obligation Bonds of 2017B $ 156,130
$6,715,000 G.O. Bonds of 2018A (B3024) $ 425,000
$12,185,000 G.O. Bonds of 2019A (B3025) $ 342,097
$2,015,000 G.O. Refunding Bonds of 2019B (B3026) $ 95,000
$8,585,000 G.O. Bonds of 2020A (B3027) $ 150,000
That the Proposed 2021 General Fund Budget be set at $16,210,954.
That the budget meeting to discuss the 2022 budget and tax levy be set for December 6, 2021 at 7:00
PM in the City Council Chambers.
BE IT FURTHER RESOLVED that the City Clerk is hereby ordered and directed to transmit a certified
copy of this resolution to the County Auditor of Hennepin County, Minnesota.
Adopted by the City Council of the City of Hopkins this 7th day of September 2021.
By
Jason Gadd, Mayor
ATTEST:
Amy Domeier, City Clerk