Special Revenue Fund Budgets and Activity Center Budget Review; Bishop
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: October 11, 2022
Subject: Special Revenue Fund Budgets and Activity Center Budget Review
_____________________________________________________________________
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
2022 2023 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 $451,531 was set on September 6th, excess TIF is
budgeted at $100,000.
The major expenditures of the fund are salaries, benefits and grants. The 2022 budget
includes a $30,000 increase for marketing. The Façade Improvement program is not in
the 2023 Budget – it has been budgeted and offered in 2015, 2017, 2019 and 2022.
Similar support to property & business owners is also being offered the City’s American
Rescue Plan Act funds.
Proposed
2022 2023 Percentage
Budget Budget Incr (Decr)
Revenues 506,302$ 571,531$ 12.88%
Expenditures 502,072$ 486,250$ -3.15%
Revenues over (under) Expenditures 4,230$ 85,281$
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
$15,360. The 12/31/2023 ending fund balance is projected to be a negative $55,590.
Proposed
2022 2023 Percentage
Budget Budget Incr (Decr)
Revenues 130,500$ 143,250$ 9.77%
Expenditures 162,030$ 158,610$ -2.11%
Revenues over (under) Expenditures (31,530)$ (15,360)$
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 $74,324. The 12/31/2023 fund balance is projected to be a positive
$177,860.
Proposed
2022 2023 Percentage
Budget Budget Incr (Decr)
Revenues 243,000$ 230,000$ -5.35%
Expenditures 271,945$ 304,324$ 11.91%
Revenues over (under) Expenditures (28,945)$ (74,324)$
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 is
projecting a decrease in fund balance of $15,000. The 12/31/2023 fund balance is
projected to be a negative $149,914 partially as a result of the negative effects of
COVID-19 and light rail construction on operations.
Proposed
2022 2023 Percentage
Budget Budget Incr (Decr)
Revenues 254,169$ 248,224$ -2.34%
Expenditures 254,169$ 263,224$ 3.56%
Revenues over (under) Expenditures -$ (15,000)$
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 $347,697, includes both $287,697
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.
The 2023 budget is still being finalized. Early projections are for a negative fund
balance of $327,987 on 12/31/2023. This is an improvement of $692,000 since
1/1/2021.
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 $380,892 less than
program expenditures. The indirectly funded amount is provided through property
taxes, local government aid, franchise fees and interest. The Activity Center is part of
the City’s General fund and does not have its own fund balance.
Proposed
2022 2023 Percentage
Budget Budget Incr (Decr)
Revenues 94,500$ 105,300$ 11.43%
Expenditures 466,388$ 486,192$ 4.25%
Indirectly funded amount (371,888)$ (380,892)$