Memo - June 2003 Financial Report
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Memornndum
Date:
To:
Cc:
From:
7/11/03
RE:
Steve Mielke
Mayor and Council members
Lori K Yager
June 2003 Financial Report
Attached are financial reports for the period ending June 30, 2003 along with some
comparative information. After brief analysis, some general comments can be made in regards
to the quarterly reports for the City.
GENERAL FUND REVENUES
.
. General fund revenues are the same as they were last year at this time. The cut in local
government aid in 2003 is offset partially by the increase in permit, plan check fees and
taxes this year. The cut in state aid amounts to $731,000 or 8% of general fund
revenues in 2003. Permit revenues are up $165,000 and plan check fees are up
$60,000 over last year at this time. Taxes are also up slightly by $65,000. Permit and
plan check fees are very volatile revenue sources and fluctuate drastically with the
redevelopment environment. The council has implemented budget adjustments for the
second half of 2003 to offset the cut in state aids. All other revenue sources are about
the same as last year at this time.
GENERAL FUND EXPENDITURES
· All city employees and the city council are well aware of the state aid cuts, which were
implemented in 2003. Through the direction of the city council and city administrator,
departments were instructed to cancel or postpone as long as possible, expenditures
which are considered more discretionary expenditures. Those expenditures could
include training, travel, memberships, part-time help, capital outlay and excetra. All
departments have been extremely frugal with expenditures this year. Seventy six
percent of expenditures in the general fund are related to employee wages and benefits.
All departments are well under budget and some are spending less this year then last
year. Those departments include Administrative Services, Municipal Buildings,
\ Police, Recreation and Planning. Overall general fund expenditures are under
budgeted targets and also $137,000 lower than last year at this time.
.
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SPECIAL REVENUE FUNDS
.
. The Economic Development fund received a grant from the Met Council in the amount
of $222,000 for the Tech Center asbestos abatement. In addition the fund has expensed
$16,000 more than it has earned in revenue in 2003. The expenditures are associated
with normal operations. The current fund balance is $3,045,000, which includes an
outstanding receivable of$I,600,000.
. The real estate fund has a $65,000 fund balance.
. TIF 1-1 (downtown district) has a $1,478,000 fund balance prior to transferring funds
for debt payments
. TIF 1-2 (entertainment center district) has a $208,000 fund balance.
. The Paratransit fund is currently a (12,500). This fund usually sits with a 'negative und
balance during the year because receipts lag two months behind expenditures.
. The Housing Rehab fund has a $1,050,000 fund balance, which is $65,000 lower than
last year at this time. This fund uses about that much in reserves every year for
operations. In the future, the city will need to find new revenue sources for this
program.
. The Parking fund has a $287,000 fund balance, which is $70,000 less then this time
last year. The city made repairs to the ramp, expending $42,000 in addition to normal
maintenance. Revenues in this fund are slightly lower then normal operating costs.
Infrastructure repairs and maintenance are consuming the fund balance. Fees and fines
will need to be evaluated to help fund future costs.
. ,The Section 8 fund has a $83,000 fund balance. The revenues in this fund continue to
exceed the expenditures incurred.
· The Cable TV fund has a $293,000 fund balance, which is $47,000 less than last year.
In addition to communication operations, this fund is supporting the promotional
activity at the Art Center. This cost is projected to be about $70,000. When combining
communications and promotions costs, this fund will deplete its current fund balance
by 2006.
. The Depot Coffee House fund is ($800), which is very successful for this fund. There
is still unrecorded revenue for the lease agreement with the school district and
additional unspent grant money.
. TIF 2-1 (R.L. Johnson) has a $396,000 fund balance.
· TIF 2-6 has a (434,000) fund balance. This is the Sonoma Apartment project and was
expected to run a negative fund balance until the end of the district term.
. TIF 2-7 (Thermotech) has a $92,000 fund balance.
.
. TIF 2-8 (Diamond Labs) has a $30,000 fund balance.
. TIF 2-9 (Oaks of Mainstreet/Pines) has a $234,000 fund balance.
. TIF 2-10 (Hopkins Business district) has a $45,000 fund balance.
. TIF 2-11 (SuperValu) has $3,052,000 fund balance. The city issued $2,450,000 in
bonds in 2002 to help pay for the redevelopment of County Road 3.
. The Art Center fund has a ($1,075,000) fund balance, which is $40,000 better than last
year. The majority of the negative fund balance is two intra fund loans outstanding of
$795,174. Annually, the Economic Development fund is transferring $61,000 to assist
with the payment of these loans. As mentioned earlier, the Cable TV fund is
supporting the communications efforts of the Art Center by reimbursing the Art Center
for promotions activity.
. The Park Improvement fund has a fund balance of $168,000. The downtown park
improvements and a stage are to be funded from this source.
. The State Aid Construction fund has a fund balance of $2,863,000. This will be used
to help fund the County Road 3 reconstruction project.
.
. The Capital Improvements fund has a $12,509,000 fund balance. The city issued
$10,760,000 for the fire and public works facility construction projects and also
$3,050,000 for the police remodel project. Both bond proceeds are in this fund.
. The PIR fund has a $1,146,000 fund balance. The funds are used for future street
projects.
. The Insurance Risk fund has a $82,000 fund balance. This will be used to pay the
deductible amounts of the general and liability insurance claims.
. The Equipment Replacement fund has retained earnings of $3,660,000. This includes
the current value of the majority of our vehicles and equipment and cash of about
$1,980,000.
. The Water Utility fund has retained earnings of $3,970,000. This includes the current
value of the wells, water distribution system, meters and other water equipment and
cash of about $1,022,000.
. The Sewer Utility fund has retained earnings of $4,065,000. This includes the current
value of the sewer pumps and lifts and other sewer equipment and cash of about
$1,198,000.
· The Refuse Utility fund has retained earnings of $926,000. This includes the current
value of the refuse equipment and cash of about $549,000.
.
.
. The Storm Sewer fund has retained earnings of$10,391,000. This includes the current
value of the storm system and the pumps and lifts and cash of about $718,000.
. The Pavilion/Ice Arena fund has retained earnings of $1,911,000. This includes the
current value of the building and equipment and cash of $47,000.
. The Skate Park has retained earnings of$4,500. This includes the current value of the
equipment less a negative cash balance of ($16,000).
GENERAL COMMENTS
. Total cash and investments are up about $17,700,000 compared to 2002. This is
attributed to issuing bonds in December 2002 and May 2003.
. Governmental fund type reserves are also up approximately $16,500,000 compared to
June 2002. The increased reserves are due to unspent bond proceeds. These funds will
be used for the facility projects, County Road 3 project, Street projects and Storm
Sewer projects.
. Included is a spreadsheet showing current and historical operations for the enterprise
funds.
. The graphs illustrate where revenues and expenditures are derived and spent. It
compares those figures for years 2000 thru 2003.
CITY OF HOPKINS
2003 FINANCIAL REPORT - JUNE
. GENERAL FUND
Year To Date 6 Months 50% of Year
Percentage Percentage
Received/ Received/
Expended Expended
2003 Budoet Year to Date 2003 2002
Revenues
Property Taxes $ 6,201,252 $ 2,972,382 47.93% 47.12%
Intergovernmental Revenue 1,370,905 209,769 15.30% 43.62%
Licenses and Permits 465,530 424,280 91.14% 60.97%
Fines and Forfeitures 130,000 66,574 51.21 % 37.91 %
Interest Earnings 160,615 38,774 24.14% 33.49%
Charges for Services 196,340 169,847 86.51 % 50.43%
Other Miscellaneous 12,664 1,784 14.09% 71.51%
Total $ 8,537,306 $ 3,883,410 45.49% 47.20%
Expenditures
Mayor/Council $ 111,739 $ 34,312 30.71% 29.83%
Administrative Services 384,531 162,751 42.32% 44.46%
. Finance 158,391 64,732 40.87% 43.48%
Legal 123,980 52,256 42.15% 33.27%
Municipal Building 101,869 33,231 32.62% 37.64%
Activity Center 296,446 130,783 44.12% 41.00%
Community Services 795,621 362,387 45.55% 44.58%
Police 3,553,948 1,643,881 46.26% 50.47%
Fire 591,536 236,682 40.01 % 37.51%
Emergency Preparedness 5,110 2,118 41.45% 4.66%
Public Works 1,953,234 749,279 38.36% 40.06%
Recreation 226,405 165,468 73.08% 68.05%
Planning 103,393 46,819 45.28% 44.86%
Unallocated 115,150 (1,640) -1.42% 32.58%
Transfers 15,953 0 0.00% 0.00%
Total $ 8,537,306 $ 3,683,059 43.14% 45.44%
Sources (Uses) of Fund
Balance $0 $200,351
.
CITY OF HOPKINS
. FOUR YEAR COMPARATIVE FINANCIAL REPORT
FOR THE PERIOD ENDING JUNE 30, 20XX
GENERAL FUND
2003 2002 2001 2000
Revenues
Property Taxes $2,972,382 $2,907,587 $2,346,181 $2,197,765
Intergovernmental Revenue $209,769 471,365 943,232 941,445
Licenses and Permits $424,280 259,780 245,038 270,491
Fines and Forfeitures $66,574 53,068 56,036 48,799
Interest Earnings $38,774 54,583 30,161 62,169
Charges for Services $169,847 92, 154 89,548 83,708
Other Miscellaneous $1,784 43,036 36,880 49,193
Total $3,883,410 $3,881,573 $3,747,076 $3,653,570
Expenditures
Mayor/Council $34,312 $33,861 $37,502 $48,668
Administrative Services $162,751 172,815 147,287 160,197
Finance $64,732 64,745 67,350 61,785
Legal $52,256 40,904 40,990 43,599
Municipal Building $33,231 42,391 78,731 24,452
Activity Center $130,783 124,438 134,778 114,141
Community Services $362,387 343,898 362,904 329,780
Police $1,643,881 1,718,614 1,598,411 1,387,074
Fire $236,682 216,754 264,442 230,129
Emergency Preparedness $2,118 1,170 12,398 695
Public Works $749,279 745,669 868,702 693,490
Recreation $165,468 233,863 194,178 156,349
Planning $46,819 47,473 96,656 63,317
Unallocated ($1,640) 33,400 (20,024 ) 66,893
Transfers 0 0 0 0
Total $3,683,059 $3,819,995 $3,884,305 $3,380,569
Sources (Uses) of Fund Balance $200,351 $61,578 ($137,230) $273,001
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CITY OF HOPKINS
. 2003 FINANCIAL REPORT - JUNE
STATUS OF RESERVES
Beginning
Balance Balance Dollar Balance
Fund 1/1/2003 6/30/2003 Difference 6/30/2002
General Fund $ 3,409,647 $ 2,563,139 $ (846,508) $ 2,458,003
Economic Development Fund 3,114,834 3,045,608 (69,226) 3,221,226
Housing Rehab Fund 1,109,456 1,050,557 (58,899) 1,115,596
Parking Fund 295,130 287,012 (8,118) 356,226
Cable TV Fund 291,503 293,829 2,326 341,314
Tax Increment 1.1 Fund 945,477 1,477,960 532,483 1,327,211
Tax Increment 1.2 Fund 187,871 208,461 20,590 145,393
Tax Increment 2.1 Fund 224,692 395,781 171,089 270,252
. Tax Increment 2.7 Fund 64,628 91,908 27,280 99,591
Tax Increment 2.8 Fund 14,158 29,704 15,546 6,070
Tax Increment 2.9 Fund 167,288 234,609 67,321 200,060
Tax Increment 2.10 Fund 15,169 45,103 29,934 5,827
Tax Increment 2.11 Fund 2,877,811 3,052,199 174,388 249,782
Park Improvement Fund 198,929 167,662 (31,267) 142,620
Municipal State Aid Construction Fund 2,231,496 2,863,069 631,573 2,655,453
Capital Improvement Fund 10,304,807 12,509,309 2,204,502 97,621
P.I.R. Construction Fund 1,536,142 1,146,217 (389,925) 273,655
CASH AND INVESTMENTS - ALL FUNDS
6/30/2003 6/30/2002
Total City Cash & Investments $ 32,442,898 $ 14,710,882
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. ,
. CURRENT AND HISTORIC QUARTERLY REPORT FOR ENTERPRISE FUND OPERATIONS
(no capital, construction or depreciation)
For the Quarter Ending June 30
2003 2002 2001 2000 1999
WA TER
OPERATING REVENUE 375,013 389,929 386,583 350,813 314,975
OPERATING EXPENSE 337,315 338,614 361,309 305,476 303,134
OPERATING INCOME (LOSS) 37,698 51,315 25,274 45,337 11,841
SEWER
REVENUE 646,131 673,230 656,940 676,894 621,118
OPERATING EXPENSE 736,497 655,671 609,763 574,155 619,196
OPERATING INCOME (LOSS) (90,366) 17,559 47,177 102,739 1,922
REFUSE
REVENUE 257,431 328,143 272,813 278,899 248,824
. OPERATING EXPENSE 292,264 270,674 287,257 263,288 235,305
OPERATING INCOME (LOSS) (34,833) 57,469 (14,444) 15,611 13,519
STORM SEWER
REVENUE 355,923 348,260 330,053 334,314 248,239
OPERATING EXPENSE 49,877 49,243 52,396 52,902 40,075
OPERATING INCOME (LOSS) 306,046 299,017 277,657 281,412 208,164
PAVILLlONIICE ARENA
REVENUE 122,246 114,419 113,673 112,369 120,835
OPERATING EXPENSE 124,052 120,961 136,276 114,641 117,817
OPERATING INCOME (LOSS) (1,806) (6,542) (22,603) (2,272) 3,018
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