III.1. 2022 Budget Meeting, 2022 Tax Levy and General and Special Revenue Fund Budgets; BishopDecember 6, 2021 Council Report 2021-121
2022 BUDGET MEETING,
2022 TAX LEVY AND GENERAL AND SPECIAL
REVENUE FUND BUDGETS
Proposed Action
The following motion can be approved after the public hearing: Move to Adopt Resolution 2021-
084 approving the 2022 tax levy and adopting the 2022 General and Special Revenue Fund
budgets.
Adoption of this motion will result in staff forwarding the appropriate documentation to
Hennepin County for inclusion on property taxes for 2022 and will approve the 2022 General and
Special Revenue Fund budgets.
Overview
A draft version of the 2022 Budget and Tax Levy was prepared by staff and presented to City
Council on July 13th. The draft included both conservative revenue estimates and decreased
expenditures. The City also hosted a virtual budget engagement session on August 16th that
reviewed a similar version of the budget and tax levy. Local Government Aid amounts were
published the last week in July. The certified amount of $880,066 was incorporated, which was
an increase of $26,395 and results in a reduction to the tax levy of the same amount.
On September 7th City Council approved a preliminary tax levy of $18,409,708, which is a
$621,324 or 3.49% increase from 2021. City Council also directed staff to continue to look for
additional ways to reduce the 2022 levy before approval.
On November 9th staff recommended a tax levy of $18,187,374, a $398,990 or 2.24% increase
from 2021. The recommended levy included $222,334 in reductions from the preliminary levy
adopted in September. City Council directed staff to continue to reduce the recommended 2022
levy before approval.
The budget in its current form recommends spending in the general fund at $16,173,620 and a
total tax levy of $18,140,100. The recommended levy has been reduced by $269,608 from the
preliminary levy. In addition, a proposed HRA levy of $391,302 is also being recommended.
The resolution approving the tax levy for 2022 and setting the 2022 general and special revenue
fund budgets can be passed after the truth-in-taxation hearing is closed.
Primary Issues to Consider
• The 2022 levy must be certified to the Hennepin County by December 28, 2022.
Supporting Information
• Summary of Changes from Preliminary Levy
• Tax Levy and Budget Overview
• Resolution 2021-068
• 2022 General Fund and Special Revenue Fund Budgets
• 2022 Tax Levy Summary
• Association of MN Counties – “Why Property Taxes Vary from Year to Year”
Nick Bishop, CPA
Finance Director
Summary of Changes from Preliminary Levy
The Final 2022 levy would be set at $18,140,100, a $351,716 or 1.98% increase from 2021. The
recommended levy has been reduced by $269,608 from the preliminary levy
General Fund Levy: The general fund levy would be set at $13,219,739, which is a $37,334
reduction from the preliminary levy. Intergovernmental chargebacks would be increased for
administrative services provided to other funds. The allocation amounts have been reviewed and
adjusted to reflect current service needs.
Capital Levy: The capital levy would set at $50,000, which is a $150,000 reduction from the
preliminary levy. The design work for the Activity Center-Facility Improvement project would be
delayed until 2023 or later. The project would not be completed until 2024 or later. Other
projects at the Activity Center and Fire Station would proceed. The Capital Improvement Fund
would be projected to decrease its fund balance by $52,828 and end 2022 with a fund balance of
$154,354.
Pavilion Levy: The pavilion levy would be set at $418,000, which is a $78,000 increase from the
preliminary levy. The two requested projects would be completed with assistance from the
Hockey Youth Hockey Association
•Pavilion/Central Park Audio Visual Systems - $70,000
o City ($60,000), HYHA ($10,000)
o Price is comparable with similar projects
•Pavilion Arena Lighting Replacement - $18,000
Equipment Replacement Levy: The equipment replacement levy would be set at $0, which is a
$250,000 reduction from the preliminary levy. This levy amount would still allow for the
purchase of all equipment in the Equipment Replacement Fund. Both the fire truck and single
axle dump truck funded with equipment certificates (debt). The Equipment Replacement Fund
would be projected to increase its fund balance by $61,063 and end 2022 with a fund balance of
$845,691.
Permanent Improvement: A permanent improvement levy would be created for $110,000. The
levy would be used for street lighting upgrades on Feltl Court.
Debt Levy/Park Dedication Fund: The debt levy would be set at $4,003,044, which is a $20,274
reduction from the preliminary levy. The same amount of franchise fees used for parks would be
allocated to bond payments. The Park Improvement Fund Balance would remain flat and end
2022 at $305,300.
Tax Levy and Budget Overview
The Final 2022 levy would be set at $18,140,100, a $351,716 or 1.98% increase from 2021.
Based on preliminary tax capacity information, city taxes on a median value home ($315,000)
will be $2,002, a $148 increase from 2021.
The two largest areas supported by the levy are public safety and capital projects & debt. This is
a breakdown of estimated City property taxes:
Median
Value Home
($315,000) Percentage
Public Safety 773$ 38.7%
General Government 283$ 14.1%
Public Works 227$ 11.3%
Parks and Recreation 140$ 7.0%
Pavilion 46$ 2.3%
Arts Center 37$ 1.8%
Activity Center 37$ 1.8%
Capital projects & debt 459$ 23.0%
Total 2,002$ 100.0%
Public Safety is comprised of police, fire and inspection departments. In total they make up
38.7% of the levy.
The Police Department’s Mission is to serve the community with Honesty, Integrity and
Respect. They accomplish this through community engagement, relationship building
and providing education and youth initiatives. They also responded to 26,139 calls for
service in 2020. They work diligently to prevent and deter crime.
The Fire Department makes a positive difference everyday by providing quality fire
response, prevention services, emergency medical, hazardous materials handling and
emergency preparedness. In 2020, they responded to 1,445 calls. Their average response
time is 4.1 minutes.
Inspections – this is the smallest department within public safety. The Inspections
Department budget is mostly funded through charges for service. The 2022 budget
includes revenues of $585,402 and expenditures of $904,960. The Inspections
Department is 1.4% of the tax levy.
Capital projects and debt is the next largest portion of the levy making up 23.0%. It supports
street reconstruction, capital projects at municipal buildings and equipment purchases.
The City is completing an aggressive street reconstruction plan paid for through bond
issuance, special assessments and user charges for water, sewer and storm-sewer. All
streets in Hopkins are planned to be reconstructed by 2030. Continuing this program
ensures the future preservation of our streets and helps maintain the quality of life
Hopkins residents have come to expect.
In order to fully realize the benefits of Southwest Light Rail the city invested in 8th
Avenue and created the Artery. The Artery is a bike, pedestrian and vehicle connection
and community space between a future light rail transit station and the City’s historic
downtown. The $5.7 million project leveraged $2.6 million of grants from Metropolitan
Council, Hennepin County and Three Rivers Park District.
The City has also invested in the Blake Road Corridor. The City is adding several
pedestrian friendly amenities including: multi-use trails, landscaped boulevards and
upgraded street lighting. The Road will also be upgraded to handle future traffic and
development demands. The $16 million project will receive reimbursements from
Hennepin County ($8 Million) and utilize Municipal State Aid of ($3 million).
The City’s share of the Artery project and Blake Road reconstruction were funded with
debt. They also took advantage of limited outside funding sources in order to make
needed improvements. Delaying the projects would likely result in higher costs and a
larger City-share of the overall cost.
The Pavilion levy being proposed is $418,000 or 2.3% of the levy. In 2018, the Pavilion was
upgraded and expanded. The City needed to complete a project to replace a 27-year old
refrigeration system that was unreliable, developing leaks and being phased out by the EPA. The
City was able to increase the scope of the project to include remodeled locker rooms, shower
rooms, expanded lobby, remodeled offices, remodeled concession stand and expanded restroom
facilities after receiving contributions from Hopkins School District ($1.0 Million) and Hopkins
Youth Hockey Association ($1.0 Million). The project still required bond proceeds of $3.1
million to complete. The debt service for the bonds will be paid with a Pavilion levy through
2033. The Pavilion will also upgrade its audio visual system in 2022.
The Arts Center levy being proposed is $339,317 or 1.8% of the total levy. The Arts Center is a
premiere cultural and artistic destination drawing over 250,000 visitors annually. The City
believes that it is an excellent economic development tool that helped make Mainstreet vibrant
and authentic. With this levy, the Arts Center will continue to be an asset to the Community.
The Activity Center is a separate facility that is included in the general fund budget. The general
fund levy amount being used for the Activity Center is $335,078 or 1.8% of the levy. The
Activity Center’s mission is to provide pathways to “Experience the Upside of Aging”. It is a
gathering place for mature adults. It is also used as a rental facility and community space.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2021-084
RESOLUTION APPROVING 2022 TAX LEVY
AND ADOPTING THE 2022 GENERAL AND
SPECIAL REVEUNE FUND BUDGETS
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA,
That the following sums of money be levied for the current year collectible in 2022 upon the
taxable property in the City of Hopkins, for the following purposes.
General Levy
General Operations $14,137,056
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 135,856
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 4,003,044
Total Levy $18,140,100
HRA/EDA Levy
Housing & Redevelopment Authority Levy $ 391,302
This levy is made based on current law and the 2022 General Fund Budget of $16,173,620.
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
$1,905,000 G.O. Capital Improvement Plan Bonds of 2012A $ 0
$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 $ 135,856
$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
BE IT FURTHER RESOLVED, that the following amounts are budgeted for the Special Revenue Funds:
State Chemical Assessment $65,000 TIF 2.9 Oaks of Main $8,591
Economic Development $502,072 TIF 2.11 Super Valu $2,150,000
TIF 1.2 Entertainment District $9,046 5th Avenue Flats $0
Parking $162,030 TIF 1.4 – Marketplace & Main $201,410
Hopkins Race & Equity Iniative $6,000 TIF 1.5 – Moline $944,101
Communication (Cable TV) $271,945 Arts Center $1,027,458
Depot Coffee House $254,169
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 on this this 6th day of December, 2021.
_______________________________________
Kristi Halverson, Mayor Pro Tempore
ATTEST:
_____________________________
Amy Domeier, City Clerk
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2022
Recommended
December 6, 2021
Department 2021 Budget 2022 Budget
% Increase
(Decrease)
Property Taxes 12,893,552 13,304,739 3.19%
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 16,173,620 2.68%
City of Hopkins
General Fund Expenditure Budget
For the Year Ending December 31, 2022
Recommended
December 6, 2021
Department 2021 Budget 2022 Budget
% Increase
(Decrease)
City Council 102,095 104,699 2.55%
Administrative Services 866,311 912,950 5.38%
Finance 426,278 462,665 8.54%
Legal 200,000 225,000 12.50%
Municipal Building 390,560 380,901 -2.47%
Assessing 245,920 244,158 -0.72%
City Clerk 176,656 219,803 24.42%
Inspections 879,588 904,960 2.88%
Police 6,242,453 6,417,543 2.80%
Fire 1,566,528 1,616,824 3.21%
Public Works 3,469,191 3,509,559 1.16%
Recreation 291,339 295,475 1.42%
Activity Center 456,798 466,388 2.10%
Planning & Zoning 233,000 204,784 -12.11%
Community Development 114,921 118,711 3.30%
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 16,173,620 2.68%
City of Hopkins
Special Revnue Funds Budget
For the Year Ending December 31, 2022
Recommended
December 6, 2021
Revenues
Fund No.2021 Budget 2022 Budget
% Increase
(Decrease)
203 State Chemical Assessment 65,000 65,000 0.00%
204 Economic Development 503,070 506,302 0.64%
211 TIF 1.2 Entertainment District 30,000 30,000 0.00%
214 Parking 121,500 130,500 7.41%
216 Hopkins Race & Equity Iniative 6,000 6,000 0.00%
217 Communications (Cable TV)243,000 243,000 0.00%
219 Depot Coffee House 233,000 254,169 9.09%
229 TIF 2.9 Oaks of Main 1,500 250 (83.33%)
231 TIF 2.11 Super Valu 2,250,000 2,370,000 5.33%
232 5th Avenue Flats - - 0.00%
233 TIF 1.4 - Marketplace & Main 195,000 206,300 5.79%
234 TIF 1.5 - The Moline 975,000 1,015,000 4.10%
250 Arts Center 1,084,159 1,087,458 0.30%
Expenditures
Fund No.2021 Budget 2022 Budget
% Increase
(Decrease)
203 State Chemical Assessment 65,000 65,000 0.00%
204 Economic Development 498,900 502,072 0.64%
211 TIF 1.2 Entertainment District 15,000 9,046 (39.69%)
214 Parking 154,875 162,030 4.62%
216 Hopkins Race & Equity Iniative 6,000 6,000 0.00%
217 Communications (Cable TV)251,224 271,945 8.25%
219 Depot Coffee House 247,266 254,169 2.79%
229 TIF 2.9 Oaks of Main 5,000 8,591 71.82%
231 TIF 2.11 Super Valu 1,750,000 2,150,000 22.86%
232 5th Avenue Flats 2,000 - (100.00%)
233 TIF 1.4 - Marketplace & Main 185,000 201,410 8.87%
234 TIF 1.5 - The Moline 925,000 944,101 2.06%
250 Arts Center 1,024,159 1,027,458 0.32%
Fund
Fund
City of Hopkins
Tax Levy
For the Year Ending December 31, 2022
Recommended
December 6, 2021
Actual Recommended % Increase
Purpose FY2021 FY2022 (Decrease)
General Operations
General Fund 12,808,552 13,219,739 3.21%
Capital Levy - 50,000 100.00%
Arts Center 331,182 339,317 2.46%
Pavilion Fund 340,000 418,000 22.94%
Equipment Replacement 200,000 - -100.00%
Permanent Improvement - 110,000 100.00%
Total General Operations 13,679,734 14,137,056 3.34%
Debt Levy 4,108,650 4,003,044 -2.57%
Total Levy 17,788,384 18,140,100 1.98%
A publication of the Association of Minnesota Counties
THE MARKET VALUE OF A PROPERTY MAY CHANGE.
• Each parcel of property is assessed at least once every five years and a sales ratio study
is done to determine if the property is assessed similarly to like properties. If not, the
Commissioner of Revenue may issue an ‘order’ that would affect the taxable value of a
parcel.
• Additions and improvement made to a property generally increases its market value.
THE MARKET VALUE OF OTHER PROPERTIES IN
YOUR TAXING DISTRICT MAY CHANGE, SHIFTING
TAXES FROM ONE PROPERTY TO ANOTHER.
• If the market value of a property increases more or less than the average increase or
decrease in a taxing district, the taxes on that property will also change.
• New construction in a taxing district increases the tax base and will affect the district’s tax
rate.
THE STATE GENERAL PROPERTY TAX MAY CHANGE.
• The state legislature directly applies a State General Property Tax to commercial/industrial
and season/recreational property classes.
Fourteen Reasons
WHY PROPERTY TAXES VARY
FROM YEAR TO YEAR
A publication of the Association of Minnesota Counties
THE CITY BUDGET AND LEVY MAY CHANGE.
• Each year, cities review the needs and wants of their citizens and how to meet those needs
and wants. This is called ‘discretionary spending’ in the city budget. Also included in the
budget is non-discretionary spending which is required by state and federal mandates
and court decisions and orders.
THE TOWNSHIP BUDGET AND LEVY MAY CHANGE.
• Each March, townships set the levy and budget for the next year.
THE COUNTY BUDGET AND LEVY MAY CHANGE.
• Each year, counties review the needs and wants of their citizens and how to meet those
discretionary needs and wants. In addition, also included in the county budget is non-
discretionary spending which is required by state and federal mandates and court
decisions and orders. As much as sixty to eighty-five percent of the county expenditures
are used to deliver mandated services.
THE SCHOOL DISTRICT’S BUDGET AND LEVY MAY
CHANGE.
• The Legislature determines basic funding levels for K-12 education and mandates services
that schools must perform. On average, approximately seventy percent of school costs
are paid by the state.
• Local school districts set levies for purposes including safe school and community
education, etc.
A SPECIAL DISTRICT’S BUDGET AND LEVY MAY
CHANGE.
• Special districts such as the Metropolitan Council, hospital districts, watershed districts,
drainage districts, etc. set levies to balance their budgets.
SPECIAL ASSESSMENTS MAY BE ADDED TO YOUR
PROPERTY TAX BILL.
• Water lines, curb and gutter, and street improvements that directly benefit your property
may be funded, in whole or in part, through a special assessment that is added to your tax
bill.
A publication of the Association of Minnesota Counties
VOTERS MAY HAVE APPROVED A SCHOOL, CITY/
TOWNSHIP, COUNTY, OR SPECIAL DISTRICT
REFERENDUM.
• Local referendums may be held for local government construction projects, excess operating
levies for schools or many other purposes.
• Referendum levies may be spread on the market value or the tax capacity of a property
depending on process and type of referendum levy.
FEDERAL AND STATE MANDATES MAY HAVE CHANGED.
• Both the state and federal governments require local governments to provide certain services
and follow certain rules. These mandates often require an increase in the cost and level of
service delivery.
AID AND REVENUE FROM THE STATE AND FEDERAL
GOVERNMENTS MAY HAVE CHANGED.
• Each year the state legislature reviews and adjusts the level of funding for a variety of aids
provided to local governments including Local Government Aid and County Program Aid.
The formulas for how aid is determined and distributed among local governments may have
changed.
• While direct aid and revenue from the federal government to local governments has declined
greatly in recent years, federal revenue continues to be a key portion of the local government
revenue stream and that revenue stream may have changed.
THE STATE LEGISLATURE MAY HAVE CHANGED THE
PORTION OF THE TAX BASE PAID BY DIFFERENT
TYPES OF PROPERTIES.
• A change in class rates will require a change in the tax rate to raise the same amount of money.
OTHER STATE LAW CHANGES MAY ADJUST THE TAX
BASE.
• Fiscal disparities, personal property taxes on utility properties, limited market value, and tax
increment financing are example of laws that affect property taxes.
CATEGORICAL AID: Aid given to a local unit of government to be used only
for a specific purpose.
CIRCUIT BREAKER: See “Property Tax Refund.”
CLASS RATES: The percent of market value set by state law that establishes
the property’s tax capacity subject to the property tax.
COUNTY PROGRAM AID: State property tax relief aid to counties, distributed
with a formula based on needs (households on foodstamps, age of the
population, number of serious crimes) and tax base equalization for counties
with smaller tax bases.
EDUCATION AID: The total amount of state dollars paid for K-12 education.
This aid is paid to the school districts.
FISCAL DISPARITIES: A program in the Twin Cities metropolitan area and on
the iron range in which a portion of the commercial and industrial property
value of each city and township is contributed to a tax base sharing pool. Each
city and township then receives a distribution of property value from the pool
based on market value and population in each city.
GENERAL PURPOSE AID: Aid given to units of government to be used at their
own discretion. Examples are Local Government Aid and County Program Aid.
HIGHWAY AID: Motor fuels tax and license tab money the state distributes
to counties, cities and townships for highways and bridges.
HOMESTEAD: A residence occupied by the owner.
INDIVIDUAL INCOME TAX: A state tax on the income of residents and non-
residents with Minnesota sources of income that is deposited into the state
general fund.
LEVY: The imposition of a tax, associated with the property tax.
LEVY LIMIT: The amount a local unit of government is permitted to levy for
specific services under state law.
LIMITED MARKET VALUE: A state imposed limit on property value increases
for the purpose of calculating property taxes.
LOCAL GOVERNMENT AID (LGA): A state government revenue sharing
program for cities with low property wealth or high service burdens that is
intended to provide an alternative to the property tax.
LOCAL SALES TAX: A local tax, authorized by the state, levied on the sale of
goods and services to be used for specific purposes by the local government.
LOCAL TAX RATE: The tax rate usually expressed as a percentage of tax
capacity, used to determine the property tax due on a property.
MARKET VALUE: An assessor’s estimate of what property would be worth
if it were sold.
MARKET VALUE AGRICULTURE CREDIT: A state credit to reduce the property
tax paid by agricultural homesteads to the local taxing jurisdiction.
MARKET VALUE HOMESTEAD CREDIT: The Market Value Homestead Credit
(MVHC) program was eliminated during the 2011 Special Session for taxes
payable in 2012 and beyond. The credit was replaced with a market value
exclusion (defined below). This guide describes the (MVHC) reimbursement
program. The program was designed to provide state-paid property tax relief
to owners of certain qualifying homestead property.
MARKET VALUE HOMESTEAD EXCLUSION: The exclusion reduces the taxable
value of qualifying homesteads. Despite the decreased taxable value, taxes
will increase on most properties including apartments and businesses and
is independent of any action taken by local governments. The exclusion
provides for a portion of each home’s market value to be excluded from its
value for property tax calculations. The amount of value excluded is directly
proportional to the MVHC the home received under the old law. In this way,
each home contributes a smaller amount to each taxing jurisdiction’s tax
base. The tax rate tends to be a little higher because of the reduced tax base,
which is why taxes increase for the other types of property. The tax burden
on any given homestead could be lesser or greater depending upon the mix
of properties in the jurisdiction and the level of the tax rate.
PROPERTY TAX: A tax levied on any kind of property.
PROPERTY TAX REFUND: A partial property tax refund program for those
who have property taxes out of proportion with their income. This program
is available to homeowners and renters.
SALES RATIO STUDY: A study conducted by the
Department of Revenue of open market property sales, which is then
compared to local assessments to ensure that local assessments adequately
reflect the market.
STATE GENERAL PROPERTY TAX: A state-imposed property tax on commercial,
industrial, and seasonal recreational properties.
STATE SALES TAX: A state tax (6.5%) levied on the sale of goods and services
that is deposited into the state general fund.
TAX CAPACITY: The valuation of property based on market value and class
rates, on which property taxes are determined.
Revised October 2014
Glossary of Terms
Association of Minnesota Counties
125 Charles Avenue
Saint Paul, MN 55103-2108
Main Line/Switchboard: 651.224.3344 Fax: 651.224.6540
www.mncounties.org
Public Meeting for the 2022 Tax
Levy and Budget
December 6, 2021
Purpose of this Meeting
Discuss and Review the City’s Budget and how
it impacts your taxes
Discuss the City’s Tax Levy
Will NOT address individual property
valuations
Taxation Process
Valuation notices sent each March for taxes
payable the following year
This is the time to appeal valuation
Set Preliminary Levy on September 7
Proposed Tax Notices mailed November 12
Public Meeting for Final Levy on December 6
Adopt Final Levy by December 28
2022 Preliminary Tax Statement
Total Estimated Market Value in Hopkins
Increased by 4.0%
Apartment –2.2% Increase
Commercial –1.3% Decrease
Industrial –4.6% Increase
Residential –6.4% Increase
2022 Preliminary Tax Statement
Median Value Home ($315,000)
Total property taxes for all taxing authorities -
$4,789
Increase of $407
City Share -$2,036
Increase of $182
2022 Budget & Tax Levy
City Manager Update on January 5, 2021
Overview of accomplishments in 2020
Reviewed 2021 Mission and Goals
Department Updates
Planning and Development –January 12, 2021
Finance –January 19, 2021
Police Department –February 2, 2021
Fire Department –February 2, 2021
2022 Budget & Tax Levy
Department Updates (continued)
Public Works –February 9, 2021
Recreation –February 9, 202
Administration & Community Services –February
16, 2021
City Manager Recap on March 2, 2021
Presentation on 2021 Mission & Goals including
background and strategies
2022 Budget & Tax Levy
Financial update on March 16, 2021
2022 Infrastructure Projects
6th Avenue South/7th Avenue South
Trunk Water Main Rehabilitation
Projected Debt Levies
Park Improvement Fund
Burnes Park Debt Service
Hopkins Center for the Arts
2022 Budget & Tax Levy
Public Works update on April 13, 2021
2022 Infrastructure Projects
6th Avenue South/7th Avenue South
Trunk Water Main Rehabilitation
2022 Budget & Tax Levy
1st Draft Budget & Tax Levy Presented to City
Council on July 13, 2021
Budget Engagement Session on August 16,
2021
2022 Budget & Tax Levy
Preliminary Budget and Tax Levy approved on
September 7, 2021
Tax Levy of $18.4 million or 3.49% increase
City Council directed staff to continue to look for
areas to reduce levy
Basis for Truth in Proposed Tax Notices
2022 Budget & Tax Levy
Recommended version of Budget and Tax
Levy presented on November 9, 2021
Tax Levy of $18.2 million or 2.24% increase
City Council directed staff to continue to look for
areas to reduce levy
2022 Budget & Tax Levy
Public Hearing on December 6, 2021 (tonight)
Proposing a final tax levy of $18,410,100
Increase of $351,716 or 1.98% from 2021
Proposed Levy has been reduced by $269,608
2022 General Fund Budget
Balanced Budget
Revenues = Expenditures
$16,173,620
$422,782 or 2.68% increase from 2021
2021 General Fund Revenue
2021 General Fund Expenditures
Capital Levy
$50,000 Levy in 2022
Projects at Activity Center and Fire Station
Arts Center Levy
$339,317 Levy in 2022
$279,317 for continued operation of facility
Premier cultural and artistic destination for 250,000
visitors annually
$60,000 to pay back deficit owed to General Fund
Pavilion Levy
$418,000 Levy in 2022
Debt service related to a 2018 upgrade and
Expansion Project
Audio Visual System
Arena Lighting Replacement
Permanent Improvement Levy
$110,000 Levy in 2022
Street lighting upgrades on Feltl Court
2022 Tax Levy
Actual Recommended % Increase
Purpose FY2021 FY2022 (Decrease)
General Operations
General Fund 12,808,552 13,219,739 3.21%
Capital Levy - 50,000 100.00%
Arts Center 331,182 339,317 2.46%
Pavilion Fund 340,000 418,000 22.94%
Equipment Replacement 200,000 - -100.00%
Permanent Improvement - 110,000 100.00%
Total General Operations 13,679,734 14,137,056 3.34%
Debt Levy 4,108,650 4,003,044 -2.57%
Total Levy 17,788,384 18,140,100 1.98%
2022 Tax Levy
Median Value Home
($315,000)
City Taxes $2,002
Increase of $148
City Service Percentage
Public Safety 38.7%
General Government 14.1%
Public Works 11.3%
Parks and Recreation 7.0%
Pavilion 2.3%
Arts Center 1.8%
Activity Center 1.8%
Capital Projects and Debt 23.0%
Total 100.0%