VII.3. Resolution Approving Proposed 2023 Levy, Proposed 2023 General Fund Bund Budget and Set Budget Meeting Date; BishopSeptember 6, 2022 Council Report 2022-079
APPROVE PROPOSED 2023 LEVY, PROPOSED 2023 GENERAL
FUND BUDGET AND SET BUDGET MEETING DATE
Proposed Action.
Staff recommends that the Council approve the following motion: Approve Resolution 2022-056
approving proposed 2023 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 2022-056 will set a maximum tax levy for 2023, will set debt levies at
amounts sufficient to pay debt service requirement taking into consideration other revenue
sources and fund reserves, approve a proposed 2023 general fund budget and set the Truth in
Taxation hearing for Wednesday, November 30, 2022.
Overview:
The City is required to certify a proposed tax levy and submit to Hennepin County by September
30th. Approval could happen on September 6th or 20st. This will be the maximum levy for 2023
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 November 30th 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 November or December 2022 following the public hearing.
Supporting Information:
• Overview of Preliminary Tax Levy and General Fund Budget
• 2023 Preliminary General Fund Budget
• 2023 Tax Levy Summary
• Truth in Taxation Insert
• 2023 Budget Preparation Schedule
• Resolution 2022-056
________________________________________
Nick Bishop, Finance Director
Overview of Preliminary Tax Levy and General Fund Budget
A draft version of the 2023 Budget and Tax Levy was prepared by staff and presented to City
Council on July 12th. The City also hosted a budget engagement session on August 15th that
reviewed the same version of the budget and tax levy. City Council has directed staff to look for
reductions before the preliminary levy is adopted.
2023 General Fund Budget
The proposed 2023 General Fund Budget will meet the needs of the community and provide the
services residents have come to expect. The budget being presented includes the addition of two
full time employees:
• Building Inspector – $116,000
o Funded through increased revenues
• Fire Command Officer – $55,000
o Funded through general fund tax levy
o Proposed start date delayed from January 1st to July 1st when compared to original
request presented on 7/12/2022
The General Fund budget is balanced. Revenues and expenditures are both set at $17,188,440, a
$1,014,820 or 6.27% increase from 2022. The general fund tax levy needed to support this
budget is $13,935,781, a $716,042 or 5.42% increase from 2022.
General Fund Surplus
The City is projected to have a surplus in the general fund of $1,196,479 at the end of 2022. The
proposed 2023 Levy, 2023 General Fund Budget, Capital Improvement Plan and Equipment
Replacement Plan use $1,158,214 of the surplus. A remaining balance of $38,265 would be
available for other purposes. The City also has $400,000 of unallocated ARPA funds.
Fund/Use Amount
Fire Department Staffing Study $100,000 (high end estimate)
Capital Improvement Fund/2024 Projects $427,650
PIR Fund/Street Lighting $290,000
Equipment Replacement Fund $220,564
Pavilion/Indoor Turf System $120,000
Total $1,158,214
Overview of Preliminary Tax Levy and General Fund Budget (Continued)
2023 Burnes Park Debt Service Levy
The 2017 project was funded through the issuance of general obligation bonds over a 15-year
period with the final payment occurring in 2033. Debt service payments have been paid with
both tax levy and park franchise fees. The preliminary levy uses $50,000 of park franchise fees
for this purpose and reduces the debt levy by the same amount when compared to the draft tax
levy presented on 7/12/2022.
2023 Tax Levy
The 2023 Tax Levy has been prepared based on debt service needs, preliminary ERP/CIP
documents and initial budgets for special revenue funds. The total tax levy is $18,766,224, this is
a $626,124 or 3.45% increase from 2022. Based on preliminary tax capacity information, city
taxes on a median value home ($361,000) would be $2,188, which is a $185 increase from 2022.
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2023
PRELIMINARY
September 6, 2022
Department 2022 Budget 2023 Budget
% Increase
(Decrease)
Property Taxes 13,304,739 14,020,781 5.38%
Intergovernmental Revenue
Local Government Aid 880,066 925,794
Intergovernmental Revenue - Other 622,000 705,000
Total Intergovernmental Revenue 1,502,066 1,630,794 8.57%
Licenses, Permits & Fines
Court Fines & Penalties 176,000 176,000
Building Permits & Inspections 475,500 557,000
Inspection Fines & Citations 2,500 3,000
City Clerk - Business Licenses 7,000 8,000
PD - Liquor, Animal Licenses & Penalties 98,300 101,800
Fire - Licenses & Permits 2,300 4,000
Public Works - Licenses & Permits 19,415 19,415
Planning & Zoning - Licenses & Permits 1,000 1,000
Total Licenses, Permits & Fines 782,015 870,215 11.28%
Charges for Service
Finance Department 5,500 5,500
Assessing 3,000 3,000
Inspections 109,400 175,450
Police 35,000 35,000
Fire 10,500 10,500
Public Works 3,150 3,150
Activity Center 90,000 94,300
Total Charges for Service 256,550 326,900 27.42%
Miscellaneous Revenue
Franchise Fees 296,200 296,200
Miscellaneous 15,250 20,250
Finance Department 3,000 3,000
Police 500 500
Fire 3,500 3,500
Public Works 5,300 5,300
Activity Center 4,500 11,000
Total Miscellaneous 328,250 339,750 3.50%
Total Revenues 16,173,620 17,188,440 6.27%
City of Hopkins
General Fund Expenditure Budget
For the Year Ending December 31, 2023
PRELIMINARY
September 6, 2022
Department 2022 Budget 2023 Budget
% Increase
(Decrease)
City Council 104,699 105,851 1.10%
Administrative Services 912,950 1,020,031 11.73%
Finance 462,665 488,794 5.65%
Legal 225,000 225,000 0.00%
Municipal Building 380,901 380,832 -0.02%
Assessing 244,158 256,089 4.89%
City Clerk 219,803 245,466 11.68%
Inspections 904,960 1,062,119 17.37%
Police 6,417,543 6,958,766 8.43%
Fire 1,616,824 1,633,390 1.02%
Public Works 3,509,559 3,632,027 3.49%
Recreation 295,475 306,993 3.90%
Activity Center 466,388 486,192 4.25%
Planning & Zoning 204,784 170,842 -16.57%
Community Development 118,711 126,848 6.85%
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 16,173,620 17,188,440 6.27%
City of Hopkins
Tax Levy
For the Year Ending December 31, 2023
PRELIMINARY
September 6, 2022
Actual Preliminary % Increase
Purpose FY2022 FY2023 (Decrease)
General Operations
General Fund 13,219,739 13,935,781 5.42%
Capital Levy 50,000 - -100.00%
Arts Center 339,317 347,697 2.47%
Pavilion Fund 418,000 340,000 -18.66%
Equipment Replacement - 250,000 100.00%
Permanent Improvement 110,000 - 100.00%
Total General Operations 14,137,056 14,873,478 5.21%
Debt Levy 4,003,044 3,892,746 -2.76%
Total Levy 18,140,100 18,766,224 3.45%
2023 Proposed Tax Levy
On September 6, 2022 City Council adopted a 2023 proposed tax levy of $18,766,224 or a 3.45 percent
increase from 2022. 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 2022,
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 15.
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 Wednesday, November 30, 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.
Activity
Center
1.8%
Capital Projects
& Debt
22.2%
General
Govt
14.3%
Public
Safety
39.8%
Public
Works
11.2%
Parks
& Rec
7.0%
Hopkins
Pavilion
1.8%
Art
Center
1.8%
Property Taxes Paid (2022)
City of
Hopkins/HRA
42.9%
Hopkins
School District
26.5%
Hennepin
County
26.1%
Metro Taxing
District
1.4%
Other Special
Taxing Districts
3.1%
City of Hopkins
2023 Budget/Tax Snapshot
September 6, 2022
City of Hopkins
2023 Budget Preparation Schedule for City Council
The following table outlines the tentative schedule for discussions on important aspects of the City’s Budget and American
Rescue Plan Act (ARPA) Spending Plan.
Meeting Date Meeting Type Subject Details
April-July N/A Internal Preparations -2021 Audit Ongoing
-Departments Prepare Budgets, Equipment
Replacement and Capital Improvement Schedules
July 12 Work Session Review 2023 Tax Levy and
General Fund Budget
-First Draft
August 8 Work Session Review Capital Improvement
Plan (CIP) and Equipment
Replacement Plan (ERP)
-Equipment Replacement Fund
-Park Improvement
-Capital Improvement
August 15 Community
Event
Review 2023 Tax Levy and
General Fund Budget
-Presentation
-Question and Answer Session
September 6 Regular Meeting -Approve Preliminary Tax Levy
and General Fund Budget
-Approve CIP and ERP
-Preliminary Levy must
be approved by
September 30
-Permanent
Improvement Revolving
Fund (Street Projects)
October 11 Work Session Review, Special Revenue
Fund Budgets, Enterprise
Fund Budgets, Activity Center
Budget and Utility Rates
-Water -Sewer
-Storm Sewer -Refuse
-Pavilion -Communications
-Chemical Assessment -Parking
-Economic Development -Depot
-Activity Center -Arts Center
September 6, 2022
City of Hopkins
2023 Budget Preparation Schedule for City Council
Meeting Date Meeting Type Subject Details
November 1 Regular Meeting Approve Utility Rates
November 30
Regular Meeting
(Wednesday)
Truth in Taxation Hearing -Overview of 2023 Budget and Tax Levy
-Public Comment
December 6 Regular Meeting Approve Final Budget & Tax
Levy
-Final Levy must be approved by December 28
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2022-056
RESOLUTION APPROVING THE PROPOSED 2023 TAX LEVY, SETTING
DEBT SERVICES LEVIES AT LEVELS UNDER THOSE REQUIRED IN THE BOND
COVENANTS, APPROVING THE PROPOSED 2023 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 2023 upon the taxable property in the City of
Hopkins, for the following purposes.
General Levy General $14,873,478
Special Levies
Debt Levies
2014A GO Bonds 100,000
2015A GO Street Reconstruction Bonds 255,000
2015B GO Tax Abatement Bonds 125,000
2016A GO Improvement Bonds 102,000
2016B GO Tax Abatement Bonds 37,411
2016C Equipment Certificates 205,000
2017A GO Street Reconstruction Bonds 940,000
2017B GO Tax Abatement Bonds 111,860
2018A GO Equipment Certificates 80,535
2018A GO Improvement Bonds 435,000
2019A GO Bonds 315,000
2019B GO Refunding Bonds 118,300
2020A GO Bonds 194,993
2020B GO Refunding Bonds 322,537
2021A GO Bonds 212,717
2022A GO Bonds 337,393
Subtotal Special Levies 3,982,746
Total Levy $18,766,224
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 2023 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) $ 100,000
$4,100,000 G.O. Street Reconstruction bonds of 2015A (B3031) $ 255,000
$4,335,000 G.O. Improvement Bonds of 2016A (B3123) $ 102,000
$1,875,000 G.O. Bonds of 2016C (B3020) $ 205,000
$11,795,000 G.O. Street Reconstruction Bonds of 2017A (B3198) $ 940,000
$3,170,000 G.O. General Obligation Bonds of 2017B $ 111,860
$6,715,000 G.O. Bonds of 2018A (B3024) $ 435,000
$3,285,000 G.O. Tax Abatement Bonds of 2018B (B3023) $ 0
$12,185,000 G.O. Bonds of 2019A (B3025) $ 315,000
$2,015,000 G.O. Refunding Bonds of 2019B (B3026) $ 118,300
That the Proposed 2023 General Fund Budget be set at $17,188,440.
That the budget meeting to discuss the 2023 budget and tax levy be set for November 30, 2022 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 6th day of September 2021.
By
Patrick Hanlon, Mayor
ATTEST:
Amy Domeier, City Clerk