Special Revenue & Activity Center Budget Review
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: November 9, 2021
Subject: Special Revenue Fund Budgets and Activity Center Budget
_____________________________________________________________________
PURPOSE
No formal action is required at this meeting. Staff is requesting input on the proposed
budgets for special revenue funds. The proposed Activity Center fund budget is shown
for informational purposes.
INFORMATION
Chemical Assessment Team Fund (Special Revenue)
The State Chemical Assessment Team provides emergency response for assessment
of chemical hazards, the maintenance of state owned equipment and training of
personnel. The response area includes Hennepin, Scott, Carver, McLeod and Renville
Counties. The State of Minnesota reimburses the City quarterly for actual costs. The
Chemical Assessment Team does not receive any tax levy support from the City.
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 65,000$ 65,000$ 0.00%
Expenditures 65,000$ 65,000$ 0.00%
Revenues over (under) Expenditures -$ -$
Finance Department
Economic Development Fund (Special Revenue)
The Economic Development Fund coordinates the economic development processes
not directly funded by specific project budgets and also supports Artstreet and
marketing. The main revenue sources of the fund are the Hopkins Housing and
Redevelopment Authority (HRA) property tax levy and excess tax increment financing
(TIF). A preliminary HRA levy of $391,302 was set on September 7th, excess TIF is
budgeted at $100,000.
The major expenditures of the fund are salaries, benefits and grants. The 2022 budget
includes a $100,000 budget for the Façade Improvement Program (previously offered in
2015, 2017 & 2019). The program strengthens the vitality of Mainstreet by improving
the pedestrian experience, increasing building transparency, and beautifying buildings
through façade revitalization efforts, which will have a lasting impact on downtown
Hopkins. Eligible property owners, or business owners, may apply for grant assistance
up to 50 percent of the cost of the improvements – up to $25,000.
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 503,070$ 506,302$ 0.64%
Expenditures 498,900$ 502,072$ 0.64%
Revenues over (under) Expenditures 4,170$ 4,230$
Parking Fund (Special Revenue)
The Parking Fund accounts for activities related to parking enforcement and parking
operations in the City. The major sources of revenue and parking permits, parking
leases and fines. The revenue budget for parking permits has been reduced based on a
decrease in permit sales due to trends caused by COVID-19. The major expenditures
are salaries and benefits. The budget is projecting a decrease in fund balance of
$33,375. The 12/31/2022 ending fund balance is projected to be a positive $6,400.
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 121,500$ 130,500$ 7.41%
Expenditures 154,875$ 162,030$ 4.62%
Revenues over (under) Expenditures (33,375)$ (31,530)$
Communications Fund (Special Revenue)
The Communications Fund provides two-way communication between the City and its
residents, employees, businesses; its civic and service organizations; and other
communities and government agencies. Some examples of the services provided are
Hopkins Highlights, the City’s website and the State of the City event. The main source
of revenue is cable franchise fees. The main expenditures are salaries, benefits and a
transfer out to the Arts Center Fund. The budget is projecting a decrease in fund
balance of $28,945. The 12/31/2022 fund balance is projected to be a positive
$272,000.
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 243,000$ 243,000$ 0.00%
Expenditures 251,224$ 271,945$ 8.25%
Revenues over (under) Expenditures (8,224)$ (28,945)$
Depot Fund (Special Revenue)
The Depot programs offer area youth creativity and leadership opportunities,
strengthens involvement in community activities, and nurtures their growth and
development through interacting with peers, the public and community partners. The
Depot Youth Board guide and support site and programming decisions, including the
management of the Depot Coffee operations. The major revenue sources of the fund
are coffee sales and support from community partners (Hopkins School District, Three
Rivers Park District, City of Minnetonka and a transfer from City of Hopkins General
fund). The major expenditures are salaries, benefits and coffee supplies. The fund has
a breakeven budget planned for 2022. The 12/31/2022 fund balance is projected to be
a negative $105,000 partially as a result of the negative effects of COVID-19 on
operations.
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 233,000$ 254,169$ 9.09%
Expenditures 247,266$ 254,169$ 2.79%
Revenues over (under) Expenditures (14,266)$ -$
Arts Center Fund (Special Revenue)
The Hopkins Center for the Arts is a premiere cultural and artistic destination drawing
over 250,000 visitors annually. Its amenities include a 715 seat theater, black-box
theater, art gallery, dance studio, classroom, meeting and multipurpose spaces. The
main revenue sources are property tax levy, rents, leases, ticket sales, grants, and
transfers in. The preliminary tax levy amount of $339,317, includes both $279,317
needed to sustain current operations and also $60,000 to reduce the deficit owed to the
City’s General fund. The fund is also supported by transfers of $50,000 and $30,000
from the City’s Communication and Economic Development funds. Major expenditures
include salaries, benefits and payments to artists. Reductions in full time employement
were made in 2021 and continue in 2022.
Proposed
2020 2021 Percentage
Budget Budget Incr (Decr)
Revenues 1,185,836$ 1,084,159$ -8.57%
Expenditures 1,125,836$ 1,024,159$ -9.03%
Revenues over (under) Expenditures 60,000$ 60,000$ 0.00%
Activity Center (General Fund)
The Hopkins Activity Center is a community facility with a gym, kitchen and meeting
rooms. The Activity Center’s mission is to provide pathways to “Experience the Upside
of Aging”. It is a gathering place for mature adults to participate in recreational, social,
educational, fitness and volunteer activities. The main sources of revenue are member
fees and facility rentals. The main expenditures are salaries, benefits and payments to
instructors or for other programming. Program revenues are $371,888 less than
program expenditures. The indirectly funded amount is provided through property
taxes, local government aid, franchise fees and interest. The Activity Center is part of
the City’s General fund and does not have its own fund balance.
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 81,500$ 94,500$ 15.95%
Expenditures 465,218$ 466,388$ 0.25%
Indirectly funded amount (383,718)$ (371,888)$
Special Revenue Fund and
Activity Center Budgets
November 9, 2021
Chemical Assessment Team
Provides emergency response to chemical
hazards
Reimbursed by Minnesota
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 65,000$ 65,000$ 0.00%
Expenditures 65,000$ 65,000$ 0.00%
Revenues over (under) Expenditures -$ -$
Economic Development
Coordinates the Economic Development
Process not funded through project budgets
Artstreet
Marketing
Economic Development Fund
Main Revenue Sources
Hopkins Housing and Redevelopment Authority
(HRA) Levy -$391,302
Excess Tax Increment Financing -$100,000
Main Expenditures
Salaries & Benefits
Grants
Economic Development Fund
Façade Improvement Program -$100,000
Previously offered in 2015, 2017, 2019
Grant assistance for 50% of the cost of
improvements, up $25,000
Delayed in 2021
Economic Development Fund
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 503,070$ 506,302$ 0.64%
Expenditures 498,900$ 502,072$ 0.64%
Revenues over (under) Expenditures 4,170$ 4,230$
Parking Fund
Parking Enforcement and Operations
Main Revenue Sources
Parking permits, leases and fines
Main Expenditures
Salaries, benefits, Insurance, Maintenance
Parking Fund
Planning for a reduction of annual permit
sales compared to before COVID-19
Projected ending fund balance of $6,400
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 121,500$ 130,500$ 7.41%
Expenditures 154,875$ 162,030$ 4.62%
Revenues over (under) Expenditures (33,375)$ (31,530)$
Communication Fund
Communication between City and
Residents, Employees, Businesses
Civic and Service Organizations
Other Communities and Government
Organizations
Examples:
Hopkins Highlights, City’s Website and State of the
City event
Communication Fund
Main Revenue Source is Cable Franchise Fees
Main Expenditures are salary, benefits and a
$50,000 transfer to the Arts Center
Communications Fund
Fund balance on 12/31/2022 is projected to
be $272,000
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 243,000$ 243,000$ 0.00%
Expenditures 251,224$ 271,945$ 8.25%
Revenues over (under) Expenditures (8,224)$ (28,945)$
Depot Fund
Depot programs offers are youth creativity
and leadership opportunities
Depot Youth Board make programming
decisions and manage the Depot coffee
operations
Depot Fund
Major revenue sources are coffee sales, and
support from community partners
Hopkins School District, Three Rivers Park District,
Minnetonka and Hopkins
Major expenditures are salaries, benefits and
coffee supplies
Depot Fund
Fund balance on 12/31/2022 is projected to
be negative $105,000
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 233,000$ 254,169$ 9.09%
Expenditures 247,266$ 254,169$ 2.79%
Revenues over (under) Expenditures (14,266)$ -$
Arts Center Fund
Premiere cultural and artistic destination
drawing over 250,000 visitors annually
715 seat theater, black-box theater, art
gallery, dance studio, classrooms, meeting
and multipurpose spaces
Arts Center Fund
Main revenue sources are property tax levy,
rents, leases, tickets sales, grants and
transfers in
Preliminary Levy of $339,317
$279,317 to sustain current operations
$60,000 to reduce deficit to general fund
Transfers in from the Communications Fund
($50,000) and Economic Development Fund
($30,000)
Arts Center Fund
Major expenditures include salaries, benefits
and payments to artists
Significant expenditure reductions have been
made including permanent reduction in full
time employment during 2020, 2021 and
continuing in 2022
Arts Center Fund
Deficit balance on 12/31/2022 is projected to
be $900,000
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 1,084,159$ 1,087,458$ 0.30%
Expenditures 1,024,159$ 1,027,458$ 0.32%
Revenues over (under) Expenditures 60,000$ 60,000$
Activity Center (General Fund)
Mission is to provide pathways to “Experience
the Upside of Aging”
Gathering place for mature adults to
participate in recreational, social, educational,
fitness and volunteer activities
Facility Rentals and Community Space –
Expanding programming
Activity Center (General Fund)
Main revenue sources are member fees and
facility rentals
Main expenditures are salaries, benefits and
payments to instructors or for other
programming
Part of the general fund and does not have a
fund balance
Activity Center (General Fund)
Indirectly funded amount is provided by
property taxes, local government aid,
franchise fees and interest
Proposed
2021 2022 Percentage
Budget Budget Incr (Decr)
Revenues 81,500$ 94,500$ 15.95%
Expenditures 465,218$ 466,388$ 0.25%
Indirectly funded amount (383,718)$ (371,888)$
Levy Cost on Median Value Home
($315,000)
Facility Dollar Amount Percentage
Pavilion $37 1.8%
Arts Center $37 1.8%
Activity Center $36 1.8%