2021 City of Hopkins, MN Annual Financial ReportCity of Hopkins, Minnesota
Annual Comprehensive Financial Report
for year ended December 31, 2021
21
City of Hopkins
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2021
Prepared by the Department of Finance
City of Hopkins
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THE CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL
REPORT YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
I INTRODUCTORY SECTION
Letter of Transmittal from the City Manager and Finance Director
Page
3
Certificate of Achievement for Excellence in Financial Reporting 7
Administrative Organization Chart 8
City Officials 9
II FINANCIAL SECTION
Independent Auditors' Report 12
Management's Discussion and Analysis 15
A. Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 30
Statement of Activities 31
Fund Financial Statements:
Balance Sheet - Governmental Funds 32
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 34
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 38
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund 39
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Economic Development Special Revenue Fund 40
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Tax Increment District Super Valu
Special Revenue Fund 41
Statement of Net Position - Proprietary Funds 42
Statement of Revenues, Expenses and Changes in
Net Position - Proprietary Funds 44
Statement of Cash Flows - Proprietary Funds 46
Notes to Financial Statements 49
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THE CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL
REPORT YEAR ENDED DECEMBER 31, 2021
Page
B.Required Supplementary Information
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 88
Schedule of Proportionate Share of Net Pension Liability - Public Employees
General Employees Retirement Fund 88
Schedule of the City's Contribution 89
Schedule of the City's Contribution to the Hopkins Fire Relief Fund 90
Schedule of Changes in the Net Pension Asset and Related Ratios - Hopkins
Fire Relief 91
Notes to Required Supplementary Information 92
C.Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 99
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds 110
Schedules of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 121
Parking 122
Communications 123
Arts Center 124
Hopkins Race & Equity Initiative 125
Depot Coffee House 126
Tax Increment District Entertainment Center 127
Tax Increment District Oaks of Mainstreet 128
5th Avenue Flats 129
Tax Increment District Moline 130
Tax Increment District Marketplace & Main 131
Combining Statement of Net Position - Nonmajor Enterprise Funds 134
Combining Statement of Revenues, Expenses and Changes in
Net Position - Nonmajor Enterprise Funds 135
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 136
Combining Statement of Net Position - Internal Service Funds 138
Combining Statement of Revenues, Expenses and Changes in
Net Position - Internal Service Funds 139
Combining Statement of Cash Flows - Internal Service Funds 140
D.Other Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budgetary Comparison Schedule – General Fund 142
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THE CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL
REPORT YEAR ENDED DECEMBER 31, 2021
Page
A.Financial Trends
Net Position by Component 148
Changes in Net Position 150
Fund Balances, Governmental Funds 152
Changes in Fund Balances, Governmental Funds 154
B.Revenue Capacity
Assessed and Actual Value of Taxable Property 156
Direct and Overlapping Property Tax Rates 157
Principal Property Taxpayers 158
Property Tax Levies and Collections 159
C.Debt Capacity
Ratios of Outstanding Debt by Type 160
Ratios of Net General Bonded Debt Outstanding 161
Direct and Overlapping Governmental Activities Debt 162
Legal Debt Margin Information 163
D.Demographic and Economic Information
Demographic and Economic Statistics 164
Principal Employers 165
E.Operating Information
Full-time Equivalent City Employees by Type 166
Operating Indicators by Function/Program 168
Capital Asset Statistics by Function/Program 170
III STATISTICAL SECTION
City of Hopkins
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CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2021
SECTION I
INTRODUCTORY SECTION
1
City of Hopkins
2
06/30/2022
To the Honorable Mayor, Members of the Hopkins City Council and the Citizens of the City of
Hopkins, Minnesota:
The Annual Comprehensive Financial Report of the City of Hopkins, Minnesota (the City) for
the fiscal year ended December 31, 2021 is hereby submitted. This report was prepared in
accordance with U.S. generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) and meets the requirements of the
Minnesota State Auditor’s Office.
This report consists of management’s representations concerning the finances of the City of
Hopkins. Consequently, management assumes full responsibility for both the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for
making these representations, management of the City of Hopkins has established a
comprehensive internal control framework that is designed both to protect the government’s
assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Hopkins financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City of Hopkins comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material respects.
The City of Hopkins financial statements have been audited by Abdo LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City of Hopkins for the fiscal year ended December
31, 2021, are free of material misstatement. The independent audit involved examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor concluded based upon the
audit, that there was a reasonable basis for rendering unmodified opinions that the City of
Hopkins financial statements for the fiscal year ended December 31, 2021, are fairly presented in
conformity with GAAP. The independent auditors’ report is presented as the first component of
the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found in the financial section of this report
immediately following the report of the independent auditors.
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Profile of the Government
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in
1893. The name was changed in 1928 to Hopkins after one of the early residents. The original
territory of incorporation was three square miles, but successive annexation since 1946 has
enlarged this area by one-third. In 1947, the residents of the area adopted a City Charter with a
Council/Manager form of government. The governing council is responsible, among other things,
for passing ordinances, adopting the budget, appointing committees and hiring the City Manager.
The government’s manager is responsible for carrying out the policies and ordinances of the
government, for overseeing day-to-day operations of the government and for appointing the
heads of the government’s departments.
The report includes all funds of the City, including the City’s Housing and Redevelopment
Authority (HRA). The City provides a full range of services including general government,
public safety, highways and streets, urban redevelopment and housing, culture and recreation,
and health and welfare. In addition to general municipal activities, the City provides water,
sewer, storm sewer and refuse services and operates an ice arena. Low-income rental housing is a
function of the HRA. The Hopkins Fire Relief Association has not met the established criteria for
inclusion in the reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and
control. All departments of the City of Hopkins are required to submit requests for appropriation
to the Finance Director by June of each year. The Finance Director uses these requests as the
starting point for developing a proposed budget. The Finance Director then presents this
proposed budget to the Council for review prior to September 30th. The Council is required to
hold public hearings on the proposed budget and to adopt a final budget no later than December
31, the close of the City of Hopkins fiscal year.
The appropriated budget is prepared by fund and department. Department heads may make
transfers of appropriations within a department. Transfers of appropriations between funds
require approval of the City Council. Budget to actual comparisons are provided in this report for
each individual governmental fund for which an annual budget has been adopted. For the General
Fund and the major Special Revenue Funds this comparison is presented on pages 39-41 as part
of the basic financial statements for the governmental funds. For governmental funds, other than
the General fund and major Special Revenue Funds, with annual budgets, this comparison is
presented in the combining and individual fund statements and schedules subsection of this
report on pages 121-131.
Factors Affecting Financial Condition
The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly
fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan
complex, is readily accessible by the many highways and railways leading into the area. This easy
access prompted steady growth for the City of Hopkins during its formative years. In response to
this growth the City developed goals of working towards a planned community, with its policies
directed toward sound ratios of residential, commercial and industrial components, with the
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current tax base approximately 69% single family residential and apartments, and 31%
commercial-industrial. The city’s population has grown slightly. The City is largely developed,
but has seen increased interest from developers since 2018 after the ground breaking for
Southwest Light Rail Transit, a fourteen mile light rail line with three stops in Hopkins.
The City Council and staff along with an organized group of concerned partners determined what
the Vision and the Mission of the City of Hopkins should be. Participation in this project was
very high and the resulting Vision and Mission are as follows:
Community Vision
Creating a spirit of community where:
All people feel save and respected, and diversity is celebrated.
Business growth is supported and a vibrant downtown is maintained.
People enjoy exceptional government services, neighborhoods and outstanding
schools.
City of Hopkins Mission
Inspire, Educate, Involve, Communicate
Economic Condition and Outlook
In 2021, the City has continued to recover from the COVID-19 Pandemic. The City's tax base has
increased and there continue to be strong economic and redevelopment opportunities within the city. The
ground breaking for Southwest Light Rail Transit (SWLRT) occurred during 2018. The project
will continue to be a catalyst for development along its corridor, including in Hopkins.
Development activity is also the result of successful planning on the part of the city council and
city staff. Efforts are being made for continued development and growth for 2022 and beyond.
Long-term financial planning
The City of Hopkins has a strategic plan for economic development and has completed extensive
planning work in anticipation of the Southwest Light Rail Transit (SWLRT) line and the three
Hopkins LRT stations. As a part of the plans, the City of Hopkins intends to pursue various
development and redevelopment efforts throughout the City.
Future projects
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in
2003, which guides future improvements and connections to regional trails.
The City has established a street reconstruction and storm sewer program based on a street
condition survey and storm water management program. The streets found in poor condition and
future problem streets will be systematically included for repairs in the five-year Capital
Improvement Plan.
5
Certificate of Achievement For
Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial reporting to the City of
Hopkins for its annual comprehensive finance report for the fiscal year ended December 31,
2020. In order to be awarded a Certificate of Achievement for Excellence in Financial
Reporting, a governmental unit must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both U.S. generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
annual comprehensive financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
We wish to express our appreciation to the Mayor and City Council for their continued interest
and support in planning and conducting the financial operations of the City in a responsible and
progressive manner. We also want to express our appreciation to the Finance Department staff
for their work in preparing this report.
Respectfully submitted,
Michael J. Mornson Nick Bishop, CPA
City Manager Finance Director
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7
Organizational Chart
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THE CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
CITY OFFICIALS
December 31, 2021
CITY COUNCIL
Term
Expires
Patrick Hanlon Mayor 12-31-23
Gerard Balan Councilmember 12-31-25
Heidi Garrido Councilmember 12-31-25
Brian Hunke Councilmember 12-31-23
Alan Beck Councilmember 12-31-23
CITY MANAGER
Michael J. Mornson Appointed
FINANCE DIRECTOR
Nick Bishop Appointed
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City of Hopkins
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CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVEFINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2021
SECTION II
FINANCIAL SECTION
11
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Hopkins, Minnesota
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the City of Hopkins, Minnesota (the City), as of and for the
year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund
information of the City as of December 31, 2021, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally a ccepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are required to be in dependent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that t he
audit evidence we have obtained is sufficient and appropriate to provide a basis for our a udit opinions.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis starting on page 15 and the schedule of Employer’s Share of the Net Pension Liability, the schedule of
Employer’s Contributions, the related note disclosures, the Schedule of Changes in Net Pension Liability (Asset) and
Related Ratios, and the Schedule of Changes in the City's OPEB Liability and Related Ratios on page 88, be presented to
supplement the basic financial statements. Such information, although not part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of manage ment about the methods of preparing
the information and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opinion on the financial statements that collectively comprise the
City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and
schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and related directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opin ion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Information
Management is responsible for the other information in the annual report. The other information comprises the
introductory section and statistical section but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statement do not cover the o ther information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2022, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and oth er matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing ,
and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Abdo
Minneapolis, Minnesota
June 30, 2022
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CITY OF HOPKINS, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
This section of the City’s annual comprehensive financial report presents a discussion and analysis of
the City’s financial activities during the fiscal year ended December 31, 2021. This discussion and
analysis should be read in conjunction with the letter of transmittal in the introductory section of this
report.
Financial Highlights
The assets and deferred outflows of the City exceeded liabilities and deferred inflows at the
close of the 2021 fiscal year by approximately $89.6 million (net position). Of this amount,
approximately $1.1 million (unrestricted net deficit) is unavailable to meet the City’s ongoing
obligations to residents and creditors due in part to the recognition of the City's share of
unfunded pension liabilities.
The City’s total net position increased by approximately $7.2 million. Key factors in this
increase were intergovernmental grants, favorable operating results and the reductions to net
pension liability. The increase was offset by the operating results in the pavilion and refuse
funds.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of approximately $28.4 million, a increase of approximately $1.4 million
in comparison with the prior year's fund balance. The increase is due to favorable operating
results in the General Fund, tax increments received and receipt of grant funds with grant
spending occuring in later years. The increase is offset by a bond refunding with proceeds
received in 2020 and distributed in 2021. Approximately $7.0 million of fund balance is
available for spending at the City’s discretion (assigned or unassigned fund balance).
As of December 31, 2021, unassigned fund balance for the General Fund was approximately
$8.0 million, or 54% of total general fund expenditures. This compares to $ 6.9 million from
the prior year, a increase of approximately $1.3 million. The City's fund balance policy states
that the City will strive to maintain an unassigned fund balance in the General Fund of 42% or
five months of the previous year's General Fund expenditures. At December 31st unassigned
fund balance is at 54%.
The City of Hopkins total debt decreased by approximately $2.5 million during the current
fiscal year due scheduled principal payments and the sale of general obligation bonds. Total
new debt totaled $8.5 million while bond maturities and refundings totaled $11.0 million.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Hopkins basic
financial statements. The City of Hopkins basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
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Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a
private-sector business.
The statement of net position presents information on all of the City of Hopkins assets, deferred
outflows of resources, liabilities, and deferred inflows of resources with the difference between them
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City of Hopkins is improving or deteriorating.
The statement of activities presents information showing how the City net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Hopkins that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Hopkins include general,
public safety, highways, streets, culture, recreation, urban redevelopment, housing, health and welfare.
The business-type activities of the City of Hopkins include water, sewer, refuse, storm sewer utilities, an
ice arena, and a housing and redevelopment authority.
The government-wide financial statements include the City of Hopkins itself, but also a legally separate
Hopkins Housing and Redevelopment Authority. Although the Hopkins Housing and Redevelopment
Authority is legally separate, it functions for all practical purposes as a department of the City of
Hopkins, and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 30-31 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Hopkins, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City of Hopkins can be divided into two
categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows of spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
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The City of Hopkins maintains several individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund, Economic Development, Tax
Increment District Super Valu, GO Bond of 2020A, GO Refunding Bond of 2020B and Permanent
Improvement Revolving fund all of which are considered to be major funds. Data from the other
remaining funds are combined into a single, aggregated presentation. Individual fund data for each of
these non-major governmental funds is provided in the form of combining statements elsewhere in this
report.
The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special
revenue funds except for the Community Development Block Grant fund and American Resue Plan Act
Fund. A budgetary comparison statement has been provided for the General fund and major special
revenue funds and schedules are provided for other funds to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 32-37 of this report.
Proprietary funds. The City of Hopkins maintains two types of proprietary funds. Enterprise funds
are used to report the same functions presented as business-type activities in the government-wide
financial statements. The City of Hopkins uses enterprise funds to account for its water, sewer, refuse,
storm sewer utilities, the pavilion ice arena, and the housing and redevelopment authority. Internal
service funds are an accounting device used to accumulate and allocate costs internally among the City
of Hopkins various functions. The City of Hopkins uses internal service funds to account for
replacement of equipment, insurance deductibles and compensated absences. Because all of these
services predominantly benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
water utility, sewer utility, storm sewer utility and pavilion funds, all of which are considered to be
major funds of the City of Hopkins. Data from the other two enterprise funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major proprietary funds is
provided in the form of combining statements elsewhere in this report. The internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is also provided in the form of combining statements elsewhere
in this report.
The basic proprietary fund financial statements can be found on pages 42-47 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found
on pages 49-86 of this report.
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Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information. Required supplementary information can be found on page 88-96
of this report.
The combining statements referred to earlier in connection with non-major governmental funds,
non-major proprietary funds and internal service funds are presented immediately following the required
supplementary information. Combining and individual fund statements and schedules can be found on
pages 99-140 of this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City of Hopkins, assets and deferred outflows exceeded liabilities and
deferred inflows by $89,566,095 at the close of the most recent fiscal year.
Due to the recognition of pension liability a significant portion (83%) of the City of Hopkins net
position is reflected in its investment in capital assets (e.g., land, buildings, machinery and equipment);
less any related debt used to acquire those assets that are still outstanding. The City of Hopkins uses
these capital assets to provide services to residents. The net capital assets are not available for future
spending. Although the City of Hopkins investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources.
City of Hopkins Net Position
December 31
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Assets
Current and other assets $ 44,312,075 $ 39,099,917 $ 6,686,126 $ 7,343,138 $ 50,998,201 $ 46,443,055
Capital assets 96,466,129 97,139,252 45,935,942 42,954,754 142,402,071 140,094,006
Total assets 140,778,204 136,239,169 52,622,068 50,297,892 193,400,272 186,537,061
Deferred Outflows of Resources
Deferred charges on refunding 64,815 105,593 - - 64,815 105,593
Pensions 6,747,524 2,615,154 242,942 70,655 6,990,466 2,685,809
OPEB 227,331 201,786 37,716 28,445 265,047 230,231
Total deferred outflows of
resources 7,039,670 2,922,533 280,658 99,100 7,320,328 3,021,633
Liabilities
Other liabilities 7,991,292 4,659,283 514,437 512,872 8,505,729 5,172,155
Long-term liabilities
outstanding 72,858,729 81,128,904 20,368,334 18,056,075 93,227,063 99,184,979
Total liabilities 80,850,021 85,788,187 20,882,771 18,568,947 101,732,792 104,357,134
Deferred Inflows of Resources
Pensions 9,119,390 3,280,755 300,797 58,619 9,420,187 3,339,374
OPEB 14,783 17,565 2,453 2,544 17,236 20,109
Total deferred inflows of
Resources 9,134,173 3,298,320 303,250 61,163 9,437,423 3,359,483
Net Position
Net investment in capital assets 40,801,556 40,389,884 26,950,711 27,683,345 67,752,267 68,073,229
Restricted 22,955,218 20,092,105 - - 22,955,218 20,092,105
Unrestricted (5,907,384) (9,862,919) 4,765,994 4,083,537 (1,141,390) (5,779,382)
Total net position $ 57,849,390 $ 50,619,070 $ 31,716,705 $ 31,766,882 $ 89,566,095 $ 82,385,952
A portion of the City of Hopkins net position represent resources that are subject to external restrictions
on how they may be used.
The City’s net position increased by $7,180,144 during the current fiscal year.
18
The net pension liability and the pension-related deferred outflows and inflows of resources (which are
reported in accordance with GASB Statement No. 68), do not change the City's future funding
requirements or obligations under the plans, which are determined by state statutes. Additionally, the
City has recorded the net pension asset of the Hopkins Fire Department Relief Association in the
government-wide statements.
Net position was impacted by $7,305,176 at December 31, 2021 due to the effects of this standard.
Pension-related amounts included in the above schedule related to the standard are as follows:
Net pension asset $ 736,802
Deferred outflows of resources 6,990,466
Net pension liability (5,612,257)
Deferred inflows of resources (9,420,187)
Total $ (7,305,176)
(remainder of this page left blank intentionally)
19
Governmental and business-type activities. Governmental activities increased the City of Hopkins
net position by $5,106,799 and business-type activities (decreased) net position by $50,177. Key
elements of the increases and decreases are as follows:
City of Hopkins Changes in Net Position
For the Year Ended December 31
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services $ 2,938,316 $ 2,211,864 $ 8,012,960 $ 7,466,143 $ 10,951,276 $ 9,678,007
Operating grants and
contributions 846,098 5,472,891 217,609 360,912 1,063,707 5,833,803
Capital grants and
contributions 972,490 - - - 972,490 -
General revenues:
Property taxes 16,768,653 19,934,102 340,249 288,525 17,108,902 20,222,627
Tax increments 4,244,240 3,812,055 - - 4,244,240 3,812,055
Franchise Taxes 1,183,050 1,190,241 - - 1,183,050 1,190,241
Grants and contributions
not restricted 906,581 810,638 646 2,595 907,227 813,233
Investment earnings 26,182 129,584 2,660 10,174 28,842 139,758
Gain on sale of capital
assets 46,020 131,004 - 8,710 46,020 139,714
Miscellaneous 40,079 34,990 4,565 5,684 44,644 40,674
Total revenues 27,971,709 33,727,369 8,578,689 8,142,743 36,550,398 41,870,112
Expenses:
General government 721,904 2,949,580 - - 721,904 2,949,580
Public safety 7,229,926 8,112,419 - - 7,229,926 8,112,419
Health and welfare 37,970 182,017 - - 37,970 182,017
Highways and streets 8,435,670 5,554,108 - - 8,435,670 5,554,108
Urban redevelopment and
housing 3,023,619 3,281,052 - - 3,023,619 3,281,052
Culture and recreation 1,965,858 1,959,265 - - 1,965,858 1,959,265
Interest on long-term debt 1,921,725 1,946,713 - - 1,921,725 1,946,713
Water - - 2,115,519 1,805,150 2,115,519 1,805,150
Sewer - - 2,608,224 2,562,282 2,608,224 2,562,282
Storm sewer - - 577,563 581,641 577,563 581,641
Refuse - - 1,111,069 964,002 1,111,069 964,002
Pavilion/ice arena - - 1,138,086 1,038,880 1,138,086 1,038,880
Housing and
redevelopment authority - - 606,643 642,736 606,643 642,736
Total expenses 23,336,672 23,985,154 8,157,104 7,594,691 31,493,776 31,579,845
Increase in net position before
transfers
4,635,037 9,742,215 421,585 548,052 5,056,622 10,290,267
Transfers 471,762 1,828,388 (471,762)(1,828,388) - -
Increase (decrease) in net position 5,106,799 11,570,603 (50,177)(1,280,336) 5,056,622 10,290,267
Net position - January 1 50,619,069 39,048,466 31,766,882 33,047,218 82,385,951 72,095,684
Net position - December 31 55,725,868 50,619,069 31,716,705 31,766,882 87,442,573 82,385,951
20
Governmental activities: Property taxes increased in 2021 due to tax growth and increased levy
amounts. The City received less grants than in previous years due to the completion of capital projects
partially funded by county grants. Net position increased primarily due to a major project costs that
were capitalized in 2021, and partially offset by an increase in debt.
21
Business-type activities. Business-type activities had a slight decrease in net position mainly due to
lower than anticipated revenue in the Pavilion/Ice Arena fund, this was offset by the Water, Sewer and
Storm Sewer funds. A utility rate study was completed in 2016 with a large increase implemented in
2017 that is designed to cover operations, debt and capital needs over the next 5 years.
22
Financial Analysis of the City’s Funds
As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City of Hopkins governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Hopkins financing requirements. In particular, unassigned fund balance may serve
as a useful measure of a City’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined
ending fund balances of $28,383,549, an increase of $1,412,983 in comparison with the prior year's
balance. The increase of fund balance in the current year was caused by favorable operating results in
the general fund and tax increment proceeds. This was offset by the issuance of 2020 refunding bonds
with callable dates in 2021.
Approximately 25% of fund balance or $6,977,569, constitutes assigned and unassigned fund balance,
which is available for spending at the City’s discretion. The remainder of fund balance is
non-spendable, restricted or committed to indicate that it is not available for new spending because it is
either in a non-spendable form (inventory, prepaid expenses, rehabilitative loans, or property held for
resale); restricted (debt service, tax increment projects) or has already been committed (for economic
development, property purchases, parking, and communication activities).
The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal
year, unassigned fund balance of the general fund was $7,989,399. This represents 93.8% of the general
fund’s total fund balance. As a measure of the general fund’s liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents approximately 53.6% of total general fund expenditures while total fund balance
represents approximately 57.2% of that same amount.
The fund balance of the City of Hopkins general fund increased by $1,156,358 during the current fiscal
year. Revenues exceeded expenditures by $1,176,358 before transfers. The increase can be attributed to
revenue exceeding budget for charges for services, fees, licenses and permits all related to ongoing
development. Total expenditures were also less than budgeted due to open positions and reductions to
paid leave accrual balances.
The Economic Development fund has a total fund balance of $4,511,489 of which $3,204,601 is
committed for economic development. The fund balance increased by $49,385 primarily as a result of
reductions in expenditures. The fund also saw significant increases to charges for services that were
directly offset by current expenditures.
The Tax Increment District Super Valu fund has a total fund balance of $7,367,434 of which all is
restricted for tax increment. The fund balance inreased by $650,306 due to tax increment collected in
excess of required payments.
The Permanent Improvement Revolving fund has a total fund balance deficit of $(75,222) which is
unassigned. The fund balance increased by $1,495,479 due to reimbursements from other governmental
agencies for prior year capital projects related to reimbursements from other governmental agencies that
will be recorded in future years.
23
The GO Bond of 2020A Fund has a total fund balance of $435,130 which is restricted. The fund
balance increased by $305,745 primarily as the result of special assessments being received for future
debt service payments.
The GO Refunding Bond of 2020B Fund has a total fund balance of $477,866 which is restricted. The
fund balance decreased by $1,096,009 primarily as the result of the issuance of 2020 refunding bonds
with callable dates in 2021.
Proprietary funds. The City of Hopkins proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Unrestricted net deficit of the Water fund at the end of the year amounted to $(414,720). The increase
in net position amounted to $123,169 and is due to operating revenues exceeding expenses and
transfers-out. The City completed a utility rate study which evaluated the entire rate structure of the
water fund. The City implemented a tiered rate structure in 2017 that will meet state requirements for
conservation pricing and meet the City's needs for operations and capital expenditures. Rates were
increased again in 2021 with smaller incremental increases planned annually.
Unrestricted net position of the Sewer fund at the end of the year amounted to $1,857,192. The
unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $372,390 and is due to operating revenues exceeding operating expenses and
transfers-out. Along with the water fund a utility rate study was also done for the sewer fund. A rate
structure was put in place in February 2017 to ensure adequate funds are maintained for operations and
capital needs in the long-term. Rates were increased again in 2021 with smaller incremental increases
planned annually.
Unrestricted net position of the Storm Sewer Utility fund at the end of the year amounted to $2,618,739.
The unrestricted net position will be used to pay for infrastructure improvements. The increase in net
position amounted to $69,999 and is due to operating revenues exceeding operating expenditures and
transfers-out.
Unrestricted net deficit of the Pavilion fund at the end of the year amounted to $(605,543). The decrease
in net position amounted to $(332,223) and is due to the increased depreciation being recorded as a
result of a 2018 upgrade project. The facility was closed or operated a limited capacity during 2021 due
to the COVID-19 Pandemic. The fund is expected to generate a positive cash flow in future periods.
General Fund Budgetary Highlights
There is no difference between the general fund original budget and the final approved budget. The
City always adopts a balanced budget and does not plan to have a decrease or increase in total fund
balance. Amending the budget was not considered necessary during the year.
During the year revenues were over budgetary estimates by $320,578 due to increased charges for
services, fees licenses and permits related to ongoing development. This was offset by a decrease in tax
revenues and finesdue to open positions and reductions to paid leave accrual balances..
24
Expenditures were under budget by $835,780 and was due open positions and reductions to paid leave
accrual balances.
The net effect of these budget impacts was a increase in fund balance of $1,156,358 after transfers.
Capital Asset and Debt Administration
Capital assets. The City of Hopkins investment in capital assets for its governmental and business type
activities as of December 31, 2021, amounts to $142,402,071 (net of accumulated depreciation). This
investment in capital assets includes land, buildings, improvements, vehicles, machinery and
equipment, park facilities, roads, highways, bridges, distribution systems and construction in progress.
Major capital asset events during the current fiscal year included the following:
Construction in progress additions totaled $6,275,768 for annual street and infrastructure
improvements.
A total of $5,569,871 of assets was transferred from construction in progress to other
improvements as infrastructure projects were completed and put into service.
Vehicle and equipment purchases totaled $604,229. Major purchases include a refuse truck, and
marked squad cars.
Vehicle and equipment deletions totaled $139,493. Deletions were a result of scheduled
replacements of public works and public safety vehicles and equipment.
City of Hopkins Capital Assets
(net of depreciation)
December 31
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Land $ 6,157,677 $ 6,157,677 $ 254,299 $ 254,299 $ 6,411,976 $ 6,411,976
Buildings 10,983,965 12,006,450 3,246,915 3,556,889 14,230,880 15,563,339
Infrastructure - - 6,697,015 7,473,428 6,697,015 7,473,428
Improvements 54,718,276 46,289,040 25,431,522 22,432,143 80,149,798 68,721,183
Vehicles 2,138,349 2,284,371 591,226 630,800 2,729,575 2,915,171
Equipment 2,465,179 2,412,719 284,869 348,083 2,750,048 2,760,802
Construction in progress 20,002,683 26,244,144 9,430,096 5,152,693 29,432,779 31,396,837
$ 96,466,129 $ 95,394,401 $ 45,935,942 $ 39,848,335 $ 142,402,071 $ 135,242,736
-
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 63-64 of
this report.
25
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $81,035,000. Of this amount $11,105,000 comprises tax increment redevelopment debt,
and $52,055,000 comprises general obligation and special assessment debt, all of which is backed by
the full faith and credit of the government. The remainder of the City of Hopkins debt, $17,875,000,
represents bonds intended to be paid from specified revenue sources (i.e., revenue bonds).
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
G.O. Tax increment bonds $ 11,105,000 $ 12,220,000 $ - $ - $ 11,105,000 $ 12,220,000
G.O. Equipment certificates 225,000 400,000 - - 225,000 400,000
G.O. Capital improvement
bonds
50,630,000 50,685,000 - - 50,630,000 50,685,000
G.O. Special assessment bonds 1,200,000 4,400,000 - - 1,200,000 4,400,000
Revenue bonds - - 17,875,000 15,800,000 17,875,000 15,800,000
$ 63,160,000 $ 67,705,000 $ 17,875,000 $ 15,800,000 $ 81,035,000 $ 83,505,000
The City of Hopkins total bonded debt decreased by $2,470,000 during the current fiscal year. The
decrease is a result of $10,460,000 in principal payments and redemptions offset by the issuance of
$8,170,000 in G.O. Bonds that financed street reconstruction project, utility improvements and
equipment purchases. General Obligation Bonds are backed by the full faith, credit and taxing power of
the City, and are serviced by General and Tax Increment levies and also by fees assessed against
benefited properties.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by the
Water, Sewer, and Storm Sewer Utility Funds and the Pavilion Fund current revenues.
City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and
repayment monies are generated by the collection of special assessments and general levies.
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market
value. At December 31, 2021, the debt limit for the City is $68,712,107. Of the total debt, $27,435,000
of general obligation and revenue bonds is applicable to the limit. After taking into consideration funds
on hand available to liquidate debt, the legal debt margin is $41,277,107.
The City of Hopkins was upgraded to a “AA+” rating from Standard & Poor’s in January 2014 which
was most recently reaffirmed in March of 2022.
Additional information on the City of Hopkins long-term debt can be found in note 8 on pages 65-68 of
this report.
Economic Factors and Next Year’s Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2022 budget.
The City will complete a street reconstruction and infrastructure project as part of its residential street
improvement program. Employee compensation will remain competitive in the market, which was
26
most recently affirmed with a compensation and classification study in 2017. Water and sewer rates
were increased incrementally based on a 2016 utility rate study. The City continues to use a Financial
Management Plan that can estimate the property tax increases or decreases on a median value home as a
basis for decision making. As a result of these factors the City prepared a budget for 2022 that included
a general fund increase of 2.68% and an overall increase of 1.34% in expenditures.
During the current fiscal year, unassigned fund balance in the general fund was $7,989,399 or 54% of
general fund expenditures. The Office of the State Auditor recommends unassigned fund balances of no
less than five months of operating expenditures. The unassigned fund balance is used to pay for the
City’s general fund obligations until it receives its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Director of Finance, City of Hopkins, 1010 First Street South, Hopkins, MN 55343.
27
28
BASIC FINANCIAL STATEMENTS
29
City of Hopkins
Statement of Net Position
December 31, 2021
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and cash equivalents $35,826,164 $6,231,667 $42,057,831
Taxes receivable 242,482 2,436 244,918
Special assessments receivable 4,531,444 -4,531,444
Accounts receivable 477,460 506,126 983,586
Intergovernmental receivable 1,241,662 346,528 1,588,190
Rehabilitation loans receivable 15,710 -15,710
Interest receivable 1,153 50 1,203
Internal balances 450,377 (450,377)-
Inventories 112,821 33,941 146,762
Net pension asset 736,802 -736,802
Prepaid items 147,835 15,755 163,590
Property held for resale 543,875 -543,875
Capital assets, non depreciable 26,160,360 9,684,395 35,844,755
Capital assets, net of depreciation 70,305,769 36,251,547 106,557,316
Total Assets 140,793,914 52,622,068 193,415,982
Deferred Outflows of Resources
Deferred charge on refunding 64,815 -64,815
Pensions 6,747,524 242,942 6,990,466
OPEB 227,331 37,716 265,047
Total Deferred Outflows of Resources 7,039,670 280,658 7,320,328
Liabilities
Accounts payable 5,303,354 107,723 5,411,077
Salaries payable 592,222 99,711 691,933
Due to other governments 200,637 30,098 230,735
Accrued interest payable 808,016 228,175 1,036,191
Unearned revenue 1,087,063 11,014 1,098,077
Non current liabilities:
Compensated absences due within one year 287,284 32,646 319,930
Total OPEB liability due within one year 227,331 37,716 265,047
Compensated absences due in more than one year 694,819 72,873 767,692
Total OPEB liability due in more than one year 687,800 114,110 801,910
Net pension liability due in more than one year 4,468,062 1,144,195 5,612,257
Bonds due within one year 5,530,000 750,000 6,280,000
Bonds due in more than one year 60,963,433 18,254,510 79,217,943
Total Liabilities 80,850,021 20,882,771 101,732,792
Deferred Inflows of Resources
Pensions 9,119,390 300,797 9,420,187
OPEB 14,783 2,453 17,236
Total Deferred Inflows of Resources 9,134,173 303,250 9,437,423
Net Position
Net investment in capital assets 40,801,556 26,950,711 67,752,267
Restricted for:
Economic development 9,216,488 -9,216,488
Public Works 2,190,601 -2,190,601
Debt service 10,670,996 -10,670,996
Net pension asset 736,802 -736,802
Communications 140,331 -140,331
Unrestricted (5,907,384)4,765,994 (1,141,390)
Total Net Position $57,849,390 $31,716,705 $89,566,095
The notes to the financial statements are an integral part of this statement.
30
City of Hopkins
Statement of Activities
For the Year Ended December 31, 2021
Program Revenues Net Revenues (Expenses) and Changes in Net Position
Functions/Programs Expenses
Charges for
Services
Operating Grants
and Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Governmental Activities:
General government $721,904 $363,606 $-$-$(358,298)$-$(358,298)
Public safety 7,229,926 810,623 594,570 -(5,824,733)-(5,824,733)
Health and welfare 37,970 141,294 --103,324 -103,324
Highways and streets 8,435,670 399,013 185,220 972,490 (6,878,947)-(6,878,947)
Urban redevelopment and housing 3,023,619 535,434 --(2,488,185)-(2,488,185)
Culture and recreation 1,965,858 688,346 66,308 -(1,211,204)-(1,211,204)
Interest on long-term debt 1,921,725 ---(1,921,725)-(1,921,725)
Total Governmental Activities 23,336,672 2,938,316 846,098 972,490 (18,579,768)-(18,579,768)
Business-Type Activities:
Water 2,115,519 2,379,130 1,817 --265,428 265,428
Sewer 2,608,224 3,128,088 ---519,864 519,864
Storm sewer 577,563 802,568 ---225,005 225,005
Refuse 1,111,069 975,107 15,238 --(120,724)(120,724)
Pavilion/Ice arena 1,138,086 464,169 ---(673,917)(673,917)
Housing and redevelopment authority 606,643 263,898 200,554 --(142,191)(142,191)
Total Business-type Activities 8,157,104 8,012,960 217,609 --73,465 73,465
Total Government $31,493,776 $10,951,276 $1,063,707 $972,490 (18,579,768)73,465 (18,506,303)
General revenues:
Property taxes 16,768,653 340,249 17,108,902
Tax increments 4,244,240 -4,244,240
Franchise taxes 1,183,050 -1,183,050
Grants & contributions not restricted 906,581 646 907,227
Unrestricted investment earnings 26,182 2,660 28,842
Gain on disposal of capital assets 46,020 -46,020
Miscellaneous 40,079 4,565 44,644
Transfers 471,762 (471,762)-
Total General Revenues 23,686,567 (123,642)23,562,925
Change in net position 5,106,799 (50,177)5,056,622
Net position - January 1, as previously stated 50,619,069 31,766,882 82,385,951
Prior Period Adjustment (see note 19)2,123,522 -2,123,522
Net position - January 1, as restated 52,742,591 31,766,882 84,509,473
Net position - December 31 $57,849,390 $31,716,705 $89,566,095
The notes to the financial statements are an integral part of this statement.
31
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2021
General Fund
Economic
Development
Tax Increment
District Super
Valu
GO Bond of
2020A
GO Refunding
Bond of 2020B
Assets
Cash and cash equivalents $7,576,992 $4,909,424 $9,363,960 $432,650 $474,600
Taxes receivable 203,607 5,127 --2,416
Special assessments receivable ---1,724,059 368,820
Accounts receivable 172,554 ----
Rehabilitation loans receivable -----
Due from other governments 195,392 ----
Interest receivable 273 129 259 2 73
Due from other funds 1,374,867 684,650 ---
Inventories 112,821 ----
Prepaid items 132,392 6,888 ---
Property held for resale -222,156 321,719 --
Total Assets $9,768,898 $5,828,374 $9,685,938 $2,156,711 $845,909
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $374,740 $1,303,554 $2,318,504 $34 $330
Salaries payable 546,375 10,957 ---
Due to other funds -----
Due to other governments 199,086 ----
Unearned revenue 24,893 ----
Total Liabilities 1,145,094 1,314,511 2,318,504 34 330
Deferred inflows of resources:
Taxes and special assessments 109,944 2,374 -1,721,547 367,713
Unavailable revenue -----
Total Deferred Inflows of Resources 109,944 2,374 -1,721,547 367,713
Fund balances:
Nonspendable 245,213 6,888 ---
Restricted 33,754 1,300,000 7,367,434 435,130 477,866
Committed -3,204,601 ---
Assigned 245,494 ----
Unassigned 7,989,399 ----
Total Fund Balances (Deficits)8,513,860 4,511,489 7,367,434 435,130 477,866
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $9,768,898 $5,828,374 $9,685,938 $2,156,711 $845,909
The notes to the financial statements are an integral part of this statement.
32
City of Hopkins
Balance Sheet
Governmental Funds
December 31, 2021
Permanent
Improvement
Revolving
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and cash equivalents $539,250 $10,137,871 $33,434,747
Taxes receivable -29,889 241,039
Special assessments receivable 206,894 2,231,671 4,531,444
Accounts receivable 10,736 276,690 459,980
Rehabilitation loans receivable -15,710 15,710
Due from other governments 1,036,986 9,284 1,241,662
Interest receivable 73 283 1,092
Due from other funds --2,059,517
Inventories --112,821
Prepaid items -8,555 147,835
Property held for resale --543,875
Total Assets $1,793,939 $12,709,953 $42,789,722
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $629,001 $620,137 $5,246,300
Salaries payable -34,890 592,222
Due to other funds -1,609,140 1,609,140
Due to other governments -1,551 200,637
Unearned revenue -1,062,170 1,087,063
Total Liabilities 629,001 3,327,888 8,735,362
Deferred inflows of resources:
Taxes and special assessments 203,174 2,229,073 4,633,825
Unavailable revenue 1,036,986 -1,036,986
Total Deferred Inflows of Resources 1,240,160 2,229,073 5,670,811
Fund balances:
Nonspendable -8,555 260,656
Restricted -8,187,800 17,801,984
Committed -138,739 3,343,340
Assigned -341,514 587,008
Unassigned (75,222)(1,523,616)6,390,561
Total Fund Balances (Deficits)(75,222)7,152,992 28,383,549
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,793,939 $12,709,953 $42,789,722
The notes to the financial statements are an integral part of this statement.
33
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
December 31, 2021
Fund balances of governmental funds $ 28,383,549
Amounts reported for governmental activities in the statement of net position are different because:
Capital Assets used in governmental activities are not financial resources and, therefore, not reported
in the governmental funds.
Capital assets 129,035,281
Less: accumulated depreciation (36,645,260)
Taxes and special assessments receivable will be collected in future years, but are not available soon
enough to pay for the current period's expenditures and therefore are deferred in the funds 4,633,825
Grants and reimbursements will be collected in future years, but are not available soon enough to pay
for the current period's expenditures and therefore are deferred in the funds.
1,036,986
Internal service funds are used by the City to charge the costs of certain activities, such as replacement
of City vehicles and equipment. The assets and liabilities of the internal service funds are included in
the governmental activities in the statement of net assets. 5,447,352
Long-term liabilities, including bonds payable and accrued interest payable, are not due and payable in
the current period and, therefore, are not reported in the governmental funds.
Bond principal payable (63,160,001)
Unamortized premium/discount (3,333,432)
Accrued interest payable (808,016)
Deferred charges on refunding 64,815
The City's net pension liability, net pension asset, total OPEB liability and related deferred outflows
and inflows of resources are recorded only on the Statement of Net Position. Balances at year end are:
Net pension asset 736,802
Deferred outflows of resources related to pensions 6,747,524
Deferred outflows of resources related to OPEB 227,331
Net pension liability (4,468,062)
Total OPEB liability (915,131)
Deferred inflows of resources related to pensions (9,119,390)
Deferred inflows of resources related to OPEB (14,783)
Net position of governmental activities $ 57,849,390
The notes to the financial statements are an integral part of this statement.
34
City of Hopkins
35
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2021
General Fund
Economic
Development
Tax Increment
District Super
Valu
GO Bond of
2020A
GO Refunding
Bond of 2020B
Revenues
Property taxes $ 12,792,890 $ 409,296 $- $- $ 331,933
Franchise Fees 306,032 ----
Tax increments -- 2,947,720 --
Special assessments ---420,473 109,800
Intergovernmental 1,559,221 ----
Fees, licenses and permits 786,390 ----
Charges for services 473,998 533,831 ---
Fines 117,492 ----
Investment earnings -5,284 2,100 --
Other miscellaneous revenues 35,393 7,271 ---
Total Revenues 16,071,416 955,682 2,949,820 420,473 441,733
Expenditures
Current:
General government 2,621,627 --13,491 6,963
Public safety 8,321,162 ----
Health and welfare 37,978 ----
Highways and streets 1,798,755 ----
Urban redevelopment and housing 106,802 876,297 916,214 --
Culture and recreation 1,961,415 ----
Debt service:
Principal retirement ---- 3,255,000
Interest and fiscal fees ---101,237 73,607
Capital Outlay 47,319 ----
Total Expenditures 14,895,058 876,297 916,214 114,728 3,335,570
Excess (deficiency) of revenues
over expenditures 1,176,358 79,385 2,033,606 305,745 (2,893,837)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ---- 1,797,828
Transfer out (20,000)(30,000) (1,383,300)--
Total Other Financing Sources (Uses)(20,000)(30,000)(1,383,300)-1,797,828
Net change in fund balances 1,156,358 49,385 650,306 305,745 (1,096,009)
Fund balance (deficit) - January 1 7,357,502 4,462,104 6,717,128 129,385 1,573,875
Fund balance (deficit) - December 31 $8,513,860 $4,511,489 $7,367,434 $435,130 $477,866
The notes to the financial statements are an integral part of this statement.
36
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2021
Permanent
Improvement
Revolving
Non-major
Governmental
Funds
Total
Governmental
Funds
Revenues
Property taxes $ 1,789 $ 4,114,858 $ 17,650,766
Franchise Fees -877,018 1,183,050
Tax increments - 1,296,520 4,244,240
Special assessments 30,636 411,581 972,490
Intergovernmental 1,497,906 140,544 3,197,671
Fees, licenses and permits --786,390
Charges for services -524,205 1,532,034
Fines -12,507 129,999
Investment earnings -16,353 23,737
Other miscellaneous revenues -485,104 527,768
Total Revenues 1,530,331 7,878,690 30,248,145
Expenditures
Current:
General government -346,839 2,988,920
Public safety -155,078 8,476,240
Health and welfare --37,978
Highways and streets 1,672,921 95,363 3,567,039
Urban redevelopment and housing - 1,151,594 3,050,907
Culture and recreation -909,171 2,870,586
Debt service:
Principal retirement - 5,010,000 8,265,000
Interest and fiscal fees - 1,800,541 1,975,385
Capital Outlay 1,839,419 44,742 1,931,480
Total Expenditures 3,512,340 9,513,328 33,163,535
Excess (deficiency) of revenues
over expenditures (1,982,009)(1,634,638)(2,915,390)
Other Financing Sources (Uses)
Improvement bonds issued - 3,720,000 3,720,000
Premium on improvement bonds -136,611 136,611
Transfer in 3,681,898 2,989,482 8,469,208
Transfer out (204,410) (6,359,736) (7,997,446)
Total Other Financing Sources (Uses)3,477,488 486,357 4,328,373
Net change in fund balances 1,495,479 (1,148,281) 1,412,983
Fund balance (deficit) - January 1 (1,570,701) 8,301,273 26,970,566
Fund balance (deficit) - December 31 $(75,222)$7,152,992 $28,383,549
The notes to the financial statements are an integral part of this statement.
37
City of Hopkins
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended December 31, 2021
Net change in fund balances total governmental funds $ 1,412,983
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. This is the amount by which capital
outlays was lower than depreciation in the current period.(439,917)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds (2,578,059)
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt uses the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also,
governmental funds report the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are recorded in the statement of net position and amortized
in the statement of activities. This amount is the net effect of these differences in the treatment
of long-term debt related items. 4,684,557
Some pension and OPEB expenses reported in the Statement of Activities do not require the
use of current financial resources and, therefore are not reported as expenditures
Change in net pension asset/liability, total OPEB liability and related deferred
outflows/inflows of resources 1,773,946
External revenues and expenditures of the internal service funds reported in the statement of
activities are not reported as revenues and expenditures in governmental funds. 253,289
Change in net position of governmental activities $ 5,106,799
The notes to the financial statements are an integral part of this statement.
38
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended December 31, 2021
Original Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 12,896,352 $ 12,896,352 $ 12,792,890 $ (103,462)
Franchise Fees 296,200 296,200 306,032 9,832
Intergovernmental 1,474,671 1,474,671 1,559,221 84,550
Fees, licenses and permits 589,715 589,715 786,390 196,675
Charges for services 228,550 228,550 473,998 245,448
Fines 194,800 194,800 117,492 (77,308)
Investment earnings 15,000 15,000 -(15,000)
Other miscellaneous revenues 55,550 55,550 35,393 (20,157)
Total Revenues 15,750,838 15,750,838 16,071,416 320,578
Expenditures
General government 2,701,600 2,701,600 2,621,627 79,973
Public safety 8,459,372 8,459,372 8,321,162 138,210
Health and welfare 224,343 224,343 37,978 186,365
Highways and streets 1,967,264 1,967,264 1,798,755 168,509
Urban redevelopment and housing 114,921 114,921 106,802 8,119
Culture and recreation 2,228,488 2,228,488 1,961,415 267,073
Capital Outlay 34,850 34,850 47,319 (12,469)
Total Expenditures 15,730,838 15,730,838 14,895,058 835,780
Excess (deficiency) of revenues over
expenditures 20,000 20,000 1,176,358 1,156,358
Other Financing Sources (Uses):
Transfer out (20,000)(20,000)(20,000)-
Net change in fund balance $-$-1,156,358 $1,156,358
Fund balance - January 1 7,357,502
Fund balance - December 31 $ 8,513,860
The notes to the financial statements are an integral part of this statement.
39
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Economic Development
Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $ 478,070 $ 478,070 $ 409,296 $ (68,774)
Charges for services --533,831 533,831
Investment earnings 25,000 25,000 5,284 (19,716)
Other miscellaneous revenues --7,271 7,271
Total Revenues 503,070 503,070 955,682 452,612
Expenditures
Current:
Urban redevelopment and housing 438,900 438,900 876,297 (437,397)
Other Financing Sources (Uses)
Transfer out (60,000)(60,000)(30,000)30,000
Net change in fund balance $4,170 $4,170 49,385 $45,215
Fund balance - January 1 4,462,104
Fund balance - December 31 $ 4,511,489
The notes to the financial statements are an integral part of this statement.
40
City of Hopkins
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Major Special Revenue Funds
Tax Increment District Super Valu
Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 2,233,000 $ 2,233,000 $ 2,947,720 $ 714,720
Investment earnings 17,000 17,000 2,100 (14,900)
Total Revenues 2,250,000 2,250,000 2,949,820 699,820
Expenditures
Urban redevelopment and housing 50,000 50,000 916,214 (866,214)
Other Financing Sources (Uses)
Transfer out (1,700,000) (1,700,000) (1,383,300) 316,700
Net change in fund balance $500,000 $500,000 650,306 $150,306
Fund balance - January 1 6,717,128
Fund balance - December 31 $ 7,367,434
The notes to the financial statements are an integral part of this statement.
41
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2021
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility Pavilion
Nonmajor
Proprietary
Funds Totals
Governmental
Activities
Internal
Service Funds
Assets
Current assets:
Cash and investments $14,079 $ 1,909,131 $ 2,724,492 $- $ 1,583,965 $ 6,231,667 $ 2,391,417
Taxes receivable ---2,436 -2,436 1,443
Accounts receivable 156,207 271,905 9,619 27,320 41,072 506,123 17,480
Accrued interest receivable --6 -44 50 56
Prepaid expenses ---2,282 13,473 15,755 -
Due from other governments ----346,528 346,528 -
Inventory 31,157 2,741 43 --33,941 -
Total current assets 201,443 2,183,777 2,734,160 32,038 1,985,082 7,136,500 2,410,396
Noncurrent assets:
Capital Assets, non depreciable:
Land 14,097 5,150 26,800 -208,252 254,299 -
Construction in progress 3,583,249 2,947,978 2,898,869 --9,430,096 -
Capital Assets, depreciable
Building and structures 39,589 6,500 6,500 3,272,851 6,103,222 9,428,662 -
Distribution system 18,720,896 13,104,875 14,381,593 5,964,707 -52,172,071 -
Machinery and equipment 413,394 711,482 9,000 360,561 1,114,158 2,608,595 9,925,040
Less accumulated depreciation (8,106,457)(5,919,478)(5,652,018)(3,155,309)(5,124,519)(27,957,781)(5,848,927)
Total noncurrent assets 14,664,768 10,856,507 11,670,744 6,442,810 2,301,113 45,935,942 4,076,113
Total Assets 14,866,211 13,040,284 14,404,904 6,474,848 4,286,195 53,072,442 6,486,509
Deferred outflows of resources:
Pensions 79,927 43,689 12,281 49,331 57,714 242,942 -
OPEB 11,591 6,063 1,599 5,032 13,431 37,716 -
Total Deferred Outflows 91,518 49,752 13,880 54,363 71,145 280,658 -
Liabilities
Current liabilities:
Accounts payable 38,458 3,523 197 7,795 57,747 107,720 57,054
Salaries payable 23,271 11,650 2,719 13,225 48,846 99,711 -
Due to other funds ---250,377 200,000 450,377 -
Due to other governments 1,660 --353 28,085 30,098 -
Compensated absences 20,120 10,462 3,592 49,206 22,139 105,519 982,103
Unearned revenue 3,250 --7,764 -11,014 -
Accrued interest payable 78,633 67,038 45,709 36,795 -228,175 -
Revenue bonds - current 242,600 178,200 119,200 210,000 -750,000 -
Total current liabilities 407,992 270,873 171,417 575,515 356,817 1,782,614 1,039,157
42
The notes to the financial statements are an integral part of this statement.
The notes to the financial statements are an integral part of this statement.
City of Hopkins
Statement of Net Position
Proprietary Funds
December 31, 2021
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility Pavilion
Nonmajor
Proprietary
Funds Totals
Governmental
Activities
Internal
Service Funds
Noncurrent liabilities:
Total OPEB liability due within one year 11,591 6,063 1,599 5,032 13,431 37,716 -
Total OPEB liability due in more than one
year 35,070 18,346 4,836 15,223 40,635 114,110 -
Net pension liability due in more than one year 375,835 204,727 56,035 245,340 262,258 1,144,195 -
Revenue bonds payable (net of unamortized
discounts and premium)6,482,782 5,137,854 3,853,396 2,780,478 -18,254,510 -
Total noncurrent liabilities 6,905,278 5,366,990 3,915,866 3,046,073 316,324 19,550,531 -
Total Liabilities 7,313,270 5,637,863 4,087,283 3,621,588 673,141 21,333,145 1,039,157
Deferred inflows of resources:
Pensions 98,982 54,136 15,286 60,507 71,886 300,797 -
OPEB 754 394 104 327 874 2,453 -
Total Deferred Inflows of Resources 99,736 54,530 15,390 60,834 72,760 303,250 -
Net Position
Net investment in capital assets 7,959,443 5,540,451 7,697,372 3,452,332 2,301,113 26,950,711 4,076,113
Unrestricted (414,720)1,857,192 2,618,739 (605,543)1,310,326 4,765,994 1,371,239
Total Net Position $7,544,723 $7,397,643 $10,316,111 $2,846,789 $3,611,439 $31,716,705 $5,447,352
The notes to the financial statements are an integral part of this statement.
43
City of Hopkins
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2021
Business-Type Activities-Enterprise Funds
Water
Utility
Sewer
Utility
Storm Sewer
Utility Pavilion
Nonmajor
Proprietary
Funds Total
Governmental
Activities
Internal
Service Funds
Operating revenues
Charges for services $ 2,389,769 $ 3,117,466 $ 798,809 $ 459,397 $ 1,226,913 $ 7,992,354 $ 695,397
Other 9,422 10,622 3,759 4,772 12,092 40,667 -
Total operating revenues 2,399,191 3,128,088 802,568 464,169 1,239,005 8,033,021 695,397
Operating expenses
Cost of sales and services 1,419,540 2,049,720 170,690 557,206 1,029,921 5,227,077 (22,981)
Administration 240,751 128,011 25,217 16,799 447,995 858,773 14,651
Depreciation 314,037 328,362 309,542 477,971 239,796 1,669,708 699,147
Total operating expenses 1,974,328 2,506,093 505,449 1,051,976 1,717,712 7,755,558 690,817
Operating income (loss)424,863 621,995 297,119 (587,807)(478,707)277,463 4,580
Nonoperating revenues (expenses)
Property taxes ---340,249 -340,249 200,244
Miscellaneous revenue 1,195 --1,318 2,052 4,565 2,213
Investment earnings --465 -2,195 2,660 232
Interest/fiscal agent expense (145,493)(117,890)(72,114)(86,110)-(421,607)-
Intergovernmental grants 2,030 117 33 127 215,948 218,255 -
Gain (loss) on sale of assets ------46,020
Total nonoperating revenues
(expenses)(142,268)(117,773)(71,616)255,584 220,195 144,122 248,709
Income (loss) before contributions and
transfers 282,595 504,222 225,503 (332,223)(258,512)421,585 253,289
Transfers and contributions
Transfers out (159,426)(131,832)(155,504)-(25,000)(471,762)-
Change in net position 123,169 372,390 69,999 (332,223)(283,512)(50,177)253,289
Net position - January 1, as previously stated 7,421,554 7,025,253 10,246,112 3,179,012 3,894,951 31,766,882 5,194,063
Net position - December 31 $7,544,723 $7,397,643 $10,316,111 $2,846,789 $3,611,439 $31,716,705 $5,447,352
The notes to the financial statements are an integral part of this statement.
44
City of Hopkins
45
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2021
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Pavilion Funds Totals Service Funds
Cash Flows from Operating Activities
Receipts from customers and users $ 2,391,271 $ 3,118,397 $ 804,844 $ 422,245 $ 1,305,896 $ 8,042,653 $ 62,783
Receipts for interfund services provided - - - 4,772 - 4,772 651,583
Internal activity-payments to other funds (11,107) - - 47,615 - 36,508 -
Internal activity-payments to other governments - - - - 101 101 -
Payments to suppliers (830,998)(1,621,443)(59,981)(179,307)(799,485)(3,491,214)(18,422)
Payments to employees (505,646)(272,725)(101,404)(307,038)(557,518)(1,744,331) -
Payments for interfund services used (240,751)(128,011)(25,217)(16,799)(122,568)(533,346)(330,522)
Miscellaneous Income - - - 1,318 2,052 3,370 -
Net cash provided by (used in) by operating activities 802,769 1,096,218 618,242 (27,194)(171,522) 2,318,513 365,422
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 2,030 117 33 127 215,948 218,255 -
Taxes - - - 340,249 - 340,249 200,244
Transfers out (159,429)(131,832)(155,504) - (25,000)(471,765) -
Net cash provided by (used in) noncapital financing
activities (157,399)(131,715)(155,471) 340,376 190,948 86,739 200,244
Cash Flows from Capital and Related Financing Activities:
Bond Proceeds 1,691,000 1,379,500 1,379,500 - - 4,450,000 -
Construction of capital assets (1,663,530)(1,371,448)(1,344,426) - (271,491)(4,650,895)(510,018)
Proceeds from sales of capital assets - - - - - - 46,020
Interest and other payments (93,930)(84,609)(30,852)(92,059) - (301,450) -
Bonds Paid by Fiscal Agent (415,000)(90,000)(170,000)(40,000) - (715,000) -
Bond Principal payments (151,026)(143,452)(80,114)(180,000) - (554,592) -
Net cash provided by (used in) capital and related
financing activities (632,486)(310,009)(245,892)(312,059)(271,491)(1,771,937)(463,998)
Cash Flows From Investing Activities
Interest received 1,195 161 459 57 2,151 4,023 3,304
Net increase (decrease) in cash and cash equivalents 14,079 654,655 217,338 1,180 (249,914) 637,338 104,972
Cash and cash equivalents - January 1 - 1,254,476 2,507,154 - 1,833,879 5,595,509 2,286,445
Cash and cash equivalents - December 31 $ 14,079 $ 1,909,131 $ 2,724,492 $ 1,180 $ 1,583,965 $ 6,232,847 $ 2,391,417
The notes to the financial statements are an integral part of this statement.
46
City of Hopkins
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2021
Business-type Activities-Enterprise Funds
Governmental
Nonmajor Activities
Water Sewer Storm Sewer Proprietary Internal
Utility Utility Utility Pavilion Funds Totals Service Funds
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ 424,863 $ 621,995 $ 297,119 $ (587,807) $ (478,707) $ 277,463 $ 4,580
Adjustments to reconcile operating income
(loss) to net cash provided by (used in) operating
activities:
Depreciation expense 314,037 328,362 309,542 477,971 239,796 1,669,708 699,147
Miscellaneous Income - - - 1,318 2,052 3,370 -
(Increase) decrease in:
Accounts receivable (11,170)(9,691) 2,276 (26,423) 66,992 21,984 (17,051)
Prepaid expense 550,749 436,194 242,288 2,631 3,832 1,235,694 -
Pensions (deferred outflows)(56,566) (30,860)(8,791) (34,489) (41,581) (172,287) -
OPEB (deferred outflows)(2,200)(4)(457)(1,054)(5,556)(9,271) -
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable 6,311 1,622 (4,020) 12,868 (82,714) (65,933) (321,254)
Due to other funds (11,107) - - 47,615 - 36,508 -
Due to other governments 1,531 - - 353 7,945 9,829 -
Unearned revenue 3,250 - - (10,729)- (7,479) -
Net pension liability 54,335 28,165 7,999 41,058 40,218 171,775 -
Total OPEB liability (525)(9,842) 2,164 1,296 17,383 10,476 -
Pensions (deferred inflows) 79,601 43,493 12,390 48,192 58,502 242,178 -
OPEB (deferred inflows)(166)(268) 18 6 316 (94)-
Net cash provided (used) by operating activities $ 1,352,943 $ 1,409,166 $ 860,528 $ (27,194) $ (171,522) $ 3,423,921 $ 365,422
The notes to the financial statements are an integral part of this statement.
47
City of Hopkins
48
NOTES TO THE
FINANCIAL STATEMENTS
4949
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
The City of Hopkins, Minnesota (the City) is a charter City, which was approved December 2, 1947. The City operates
pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council – Manager form of
government.
The financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles as
applied to governmental units by the Government Accounting Standards Board (GASB). The more significant accounting
policies of the City are described below.
A. REPORTING ENTITY
In accordance with GASB pronouncements, the City’s financial statements include all funds and departments of the
City and its component units, for which the City is considered to be financially accountable. A blended component
unit, although legally separate entity is, in substance, part of the City’s operations and so data from this unit is
combined with data of the primary government. The City’s blended component unit has a March 31 year-end. The fund
statements shown represent a year-end nine months prior the the City's December 31 year-end. .
Blended Component Unit
Housing and Redevelopment Authority in and for the City of Hopkins (HRA)
The HRA was created by the City to carry out certain redevelopment projects and low-income rental housing. The
HRA's governing body is the same as the governing body of the primary government in that all members of the Hopkins
City Council are also the Hopkins Housing and Redevelopment Authority Commissioners. The City of Hopkins in its
capacity as the HRA Board of Directors, has operational responsibility for the HRA. Therefore there is a burden
relationship between the primary government and the component unit. The housing activity is supported in part by
federal subsidies. There is an extensive trust agreement between the HRA and HUD regarding the facility. The HRA is
included in the City’s enterprise funds. Separate financials are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., statement of net position and the statement of changes in net position)
report information on all activities of the primary government and its component units. The interfund services provided
and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
50
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at year-end.
Governmental funds are accounted for using the current financial resources measurement focus and the modified
accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become
measurable and available). “Measurable” means the amount of the transaction can be determined and “available”
means collectible within the current period or within sixty days thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental revenues,
charges for services, and investment earnings. Major revenues that are not susceptible to accrual include fees and
miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is
incurred, except for principal and interest on general long-term debt and compensated absences that are recognized
when due and payable.
The City reports the following major governmental funds:
The general fund is the primary operating fund of the City. It is used to account for all financial resources except
those required to be accounted for in another fund.
The economic development special revenue fund accounts for development opportunities of the city. Sources of
funds are derived from the administration of loans and an annual tax levy.
The tax increment district super valu special revenue fund accounts for the activities of the Super Valu tax
increment development district. Sources of funds are a tax increment levy.
The 2020A general obligation debt service fund accounts for the accumulation of resources for, and payment of,
general long-term debt principal, interest and related costs.
The 2020B general obligation refunding debt service fund accounts for the accumulation of resources for, and
payment of, general long term debt principal, interest and related costs.
The permanent improvement revolving capital projects fund accounts for resources and accumulated payments for
street improvements funded with bonds and special assessments levied on benefited property.
The City reports the following major proprietary funds:
The water utility fund accounts for the operations of the City-owned water distribution system. The water bonds of
2012B, 2013A, 2016C, 2017B, 2019A, 2019B, 2020A, 2020B and 2021A are included as part of this fund since
revenues of the water fund are pledged to pay principal and interest on this bond.
The sewer utility fund accounts for the operations of the City-owned sewer lift stations and disposal system. The
sewer bonds of 2012B, 2013A, 2017B, 2019A, 2019B, 2020A, 2020B and 2021A are included as part of this fund
since revenues of the sewer fund are pledged to pay principal and interest on this bond.
51
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
The storm sewer utility fund accounts for the operations and improvements of the storm water drainage system. The
storm water bond issues of 2010B, 2012B, 2013A, 2017B, 2020A,2020B and 2021A are included as part of this
fund since revenues of the storm sewer fund are pledged to pay principal and interest on these bonds.
The pavilion fund accounts for the operations and improvements of the city owned ice arena. The pavilion
equipment certificates 2012B and 2020B are included as part of this fund. Additionally, the 2018B Tax Abatement
bonds used for the City's contribution towards the pavilion addition project are included as part of the fund.
Additionally, the City reports the following fund types:
Governmental Funds
Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that
are legally restricted or committed by Council to expenditures for specified purposes.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment
of, general long-term debt principal, interest, and related costs.
Capital Project Funds - Capital project funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and infrastructure, other than those financed by proprietary
funds or special revenue funds.
Proprietary Funds
Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis, be financed or recovered
primarily through user charges.
Internal Service Funds – Internal service funds are used to account for the financing of goods and services provided
by one department to other departments of the City on a cost-reimbursement basis. Internal service funds are used
for equipment replacement, insurance deductions and employee benefits.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements,
however interfund services provided and used are not eliminated in the process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the City enterprise funds and internal service
funds are charges to customers for sales and service. Operating expenses for enterprise funds and internal service funds
include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, and then use unrestricted resources as they are needed.
52
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
D. CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in authorized investments pursuant to
Minnesota Statutes (see note 4). Earnings from such investments are allocated to the respective funds on the basis of
applicable cash balance participation by each fund. Investments in certificates of deposit with a maturity date of less
than one year at the date of purchase are reported at cost or amortized cost, which approximates fair value. Investments
held longer than one year are reported at fair value, based on quoted market prices.
The City accounts for its cash, cash equivalents and investments in an entity-wide cash management pool, which is used
essentially as a demand deposit account. Restricted cash and investments are reported separately on the financial
statement.
E. INTERFUND RECEIVABLES/PAYABLES
Activity between funds that is representative of lending/borrowing arrangements and transactions between funds that
are outstanding at the end of the fiscal year are referred to “due to/from other funds” Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide financial
statements as “internal balances.”
The non-current portion of due from other funds is classified as nonspendable fund balance in the general fund to
indicate that this portion of fund balance is not available for appropriation and is not expendable available financial
resources.
F. INVENTORIES AND PREPAID ITEMS
All inventories are accounted for using the consumption method and are valued at cost using the first-in/first-out (FIFO)
method.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. Prepaid items are reported using the consumption method and
recorded as expenditures/expenses at the time of consumption.
G. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements and the proprietary fund
financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated capital assets are
recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Assets not being depreciated include land and construction in progress. Buildings, equipment, and infrastructure of the
City and the HRA are depreciated using the straight-line method over the estimated useful lives as follows:
Buildings 30 - 40 years
Mains and Lines 40 - 50 years
Streets 20 - 25 years
Improvements 10 - 20 years
Vehicles 3 - 30 years
Equipment 3 - 20 years
53
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
H. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources.
This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that
applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then.
The City has three items that qualify for reporting in this category. It is the deferred charge on refunding reported in
the government-wide statement of net position, the deferred charge for pensions (see Pension section below for
explanation) and deferred charge on post employment benefits other than pensions (see OPEB section below for
explanation). A deferred charge on refunding results from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding
debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
assets that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time.
The City has two items that qualifies for reporting in this category. It is the deferred charge for pensions (see Pension
section below for explanation) and deferred charges on post employment benefits other than pension (see OPEB
section below for explanation). The City also has one type of item, which arises under a modified accrual basis of
accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in
the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources:
property taxes, special assessments, loans and grants. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
I. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation or flex leave. Employees hired prior to
August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month of full-time service, instead of
flex leave.
Employees hired prior to August 1, 1998, that have not opted for flex leave, shall be entitled to severance pay, after
completion of five years of continuous City employment. Severance pay is calculated by multiplying the total number
of continuous years in the City employ and/or accumulated sick leave by the daily wage rate prevailing at date of
severance, at one day per year of such employment, to a maximum of 20 days. Such severance money shall be paid in
case of separation caused by death, eligible retirements, or medically attested disability preventing an employee from
performing the major duties of the position or separation for non-disciplinary reasons.
Accumulated vacation, flex and vested severance pay is reported as an expense and an accrued liability as the benefits
accrue to employees in the government-wide and proprietary fund financial statements. A liability for these amounts is
reported in the governmental funds only if benefits have matured as a result of employee resignations and retirements.
The employee benefits internal service fund reports the governmental funds’ liability for compensated absences on the
accrual basis.
For the governmental activities, compensated absences liability is generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue funds.
J. PENSIONS
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by
PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer
payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
54
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense
associated with the City's requirement to contribute to the Hopkins Fire Relief Association, information about the Plan's
fiduciary net position and additions to/deductions from the Hopkins Fire Relief Association Plan's fiduciary net position
have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including
refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
K. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB, and OPEB
expense, the City recognizes payments when due and payable in accordance with the benefit terms. The City's benefit
payments consist of the implicit rate subsidy, and partially subsidized premiums for retirees hired before July 1, 1993.
For the governmental activities, the OPEB and pension liabilities are generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue fundsFor the governmental activity.
L. LONG-TERM OBLIGATIONS
In the government-wide financial statements, and proprietary fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts, amortized over the life of the bonds.
Bonds payable are reported net of the applicable bond premium or discount.
In the governmental fund financial statements bond premiums and discounts, as well as bond issuance costs are
recognized during the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
M. NET POSITION/FUND EQUITY
Net position represents the difference between assets and liabilities in the government-wide financial statements. Net
position invested in capital assets consists of capital assets net of accumulated depreciation, reduced by the outstanding
balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the
government-wide financial statements when there are limitations imposed on its use through external restrictions
imposed by creditors, grantors, laws or regulations of other governments.
In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for
which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – portions of fund balance related to prepaids, inventories, long-term receivables, and land held for
resale.
Restricted – funds are constrained by external parties (statute, grantors, bond agreements, etc.).
Committed – fund constraints are established and modified by a resolution approved by the City Council.
Assigned – consists of internally imposed constraints. These constraints are established by the City Council and/or
management. The City Council also delegates the authority to assign fund balance to the Finance Director per City
Legislative Policy 6-G, Fund Balance.
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Unassigned – is the residual classification for the General Fund and also reflects negative residual amounts in other
funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is
the City’s policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it
is the City’s policy to use committed first, then assigned, and finally unassigned amounts.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund of a
minimum of 5 months or 42% of the previous year’s budgeted expenditures.
N. INTERFUND TRANSACTIONS
Inter-fund services provided and used are accounted for as revenues and expenditures. Transactions that constitute
reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are
recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
All other interfund transactions are reported as transfers.
O. PROPERTY TAXES
Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County (the
County) for collection in the following year. In the State of Minnesota, counties act as collection agents for all property
taxes. The County spreads all levies over assessable property. Such taxes become a lien on January 1 and are recorded
as receivables by the City at that date.
Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal property
taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County provides tax
settlements to cities and other local governments three times a year, on or before January 25, July 5 and December 5.
In the governmental fund financial statements property taxes are accrued and recognized as revenue for collections
within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as delinquent taxes
receivable, and are fully offset by deferred inflows of resources because they are not available to finance current
expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be
material.
P. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Commercial Development Revenue Notes/Bonds in accordance with the
Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the
public interest. The obligations are secured by the property financed and are payable solely from payments received on
the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers from
the bond holder to the private-sector entity served by the debt issuance. Neither the City, the State, nor any political
subdivision thereof is obligated in any manner for repayment of the obligations. Accordingly, the bonds are not
reported as liabilities in the accompanying financial statements. As of December 31, 2021, there were 6 notes/bond
issues outstanding, with an aggregate principal amount payable of approximately $51 million.
56
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Q. USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT- WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances – total governmental funds and change in net position of governmental activities
as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental
funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.” The details of this difference are as follows:
Capital outlay $ 1,931,480
Depreciation expense (2,371,397)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net position
of governmental activities $ (439,917)
Another element of that reconciliation explains that, “the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt uses financial resources of the
governmental funds. Neither of these transactions has any effect on the net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.” The details of these differences are as follows:
Principal repayments $ (8,265,000)
Issuance of general obligation bonds 3,720,000
Add premium 136,611
Amortization of deferred losses on refunding 40,778
Amortization of bond premium and discount (333,297)
Prior year interest expense (791,665)
Accrue interest expense for current year 808,016
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities $ (4,684,557)
57
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds except the Hennepin County CDBG and American Rescue Plan Act special revenue funds, the
debt service funds and the capital projects funds, which are not budgeted. A capital improvement plan is reviewed
annually by the City Council for the capital projects funds and utility funds. However, appropriations for major
projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the
financial statements. All annual appropriations lapse at fiscal year end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements and set forth
in Section 7.04 of the City Charter.
1. The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed budget
and an explanatory budget message in a form and manner as prescribed by the City Charter.
2. The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer comments.
3. The Council shall adopt the tax levy by resolution no later than a December date, which is annually established by
law for the county auditor to levy taxes. The budget shall set forth the total for each budgeted fund with such
segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget
control.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any
revisions that alter the total expenditures of any fund must be approved by the City Council and are limited to the
amount revenues exceed the budgets or authorize the transfer of sums from unexpended balances to other purposes.
Budgeted expenditure appropriations lapse at year-end. The level of legal control is at the fund level.
5. The Council made no supplemental budgetary appropriation throughout the year.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2021, actual expenditures exceeded the budgeted amounts in the following funds:
Economic Development Fund $ 437,397
Tax Increment District SuperValu 866,214
Parking 7,069
State Chemical Assessment 8,135
Communications 14,976
Tax Increment District Marketplace & Main 29,113
Tax Increment District Oakes of Mainstreet 4,142
These over expenditures were funded by greater than anticipated revenues of the Economic Development, Tax
Increment of Marketplace and Main and Tax Increment District Moline funds, from fund balance in the Parking, Depot
Coffee House, Tax Increment Districts 5th Ave Flats, and Tax Increment District Oakes of Mainstreet funds.
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process are
funds that are completely reimbursable from the federal and state governments. The Hennepin County CDBG and
American Rescue Plan Act funds are non-budgeted funds.
58
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
C. FUND BALANCE DEFICITS
At December 31, 2021, the following funds had deficit fund balances or net position. These deficits will be funded
through future tax levies, contributions, grants, charges for services or developer payments:
Art Center $ 757,211
Permanent Improvement Revolving 75,222
State Chemical Assessment Team 26,055
Depot Coffee House 134,914
5th Avenue Flats 399,379
Tax Increment District Marketplace & Main 175,510
Tax Increment Bonds of 1997 Refunding Bonds of 2005B 6
Tax Increment Bonds of 1999B Refunding Bonds of 2009B 37
Tax Increment Revenue Bonds of 2016D 14,957
Equipment Certificates of 2020A 5,180
Parking 8,700
D. NET POSITION RESTRICTED BY ENABLING LEGISLATION
The government-wide statement of net position reports $9,216,488 in restricted net position for economic development,
of which $9,200,746 is restricted by enabling legislation. The remaining $15,742 is CDBG funds restricted by outside
parties.
4. DEPOSITS AND INVESTMENTS
As of December 31, 2021 the City had the following deposits and investments:
Investment Type Fair Value
Government sponsored entities $ 995,071
Municipal obligations 103,330
Negotiable certificates of deposit 489,649
Money market mutual fund 20,599,614
Deposits 19,870,167
Total fair value cash and investments $ 42,057,831
Interest rate risk – Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in
interest rates. In accordance with City of Hopkins Legislative Policy 6-B, Standards of Investments, the city manages its
exposure to declines in fair values by structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
At December 31, 2021 the City had the following investment maturities:
Investment Maturities (in Years)
Less No
Total than One 1-5 6-10 Maturity
Investment Type:
Government sponsored entities
Freddie Mac $ 995,071 $ 995,071 $ - $ - $ -
Municipal obligations 103,330 - 103,330 - -
Negotiable certificates of deposit 489,649 489,649 - - -
Money market mutual fund 20,691,879 16,097,735 - - 4,594,144
$ 22,279,929 $ 17,582,455 $ 103,330 $ - $ 4,594,144
Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations.
Credit risk is measured using credit quality ratings of investments in debt securities as described by nationally recognized
rating agencies such as Standard & Poor’s and Moody’s. According to the City’s investment policy commercial paper
shall be restricted to issues, which mature in 270 days or less with a rating of A-1 (Moody’s), P-1 (Standard & Poor’s) or
F-1 (Fitch) among at least two of the three rating agencies.
The City is authorized by Minnesota Statutes to invest in the following:
(a) Direct obligations or obligations guaranteed by the United States or its agencies
(b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose
only investments are in securities described in (a) above
(c) General obligations in the State of Minnesota or any of its municipalities
(d) Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality,
and maturity in 270 days or less; and
(f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries
(g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with
capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
The following table lists the credit quality ratings per Moody’s and/or Standard and Poor’s and/or Fitch of the City’s
investments at December 31, 2021.
Quality Ratings
Not
Total AAA AA Rated
Investment Type:
Government securities
Freddie Mac $ 995,071 $ - $ 995,071 $ -
Municipal obligations 103,330 - 103,330 -
Negotiable certificates of deposit 489,649 - - 489,649
Money market mutual fund 20,691,879 - - 20,691,879
$ 22,279,929 $ - $ 1,098,401 $ 21,181,528
60
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Custodial credit risk
Deposits – For deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the
legal investments described above, as well as certain first mortgage notes, and certain other state or local government
obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or
in a financial institution other than that furnishing the collateral. At December 31, 2021 the City had $34,018 of deposits
that were uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the City’s agent
in the City’s name.
Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside party. All
investments held by the City are insured or registered or are held by the City or its agent in the City’s name. The City has
no investments that are uninsured or unregistered nor are any investments held by a counterparty or a counterparty's trust
department or agent that is not in the city's name.
Concentration of credit risk – This is the risk associated with investing a significant portion of the City’s investments
(considered 5% or more) in the securities of a single issuer, excluding U.S. explicitly guaranteed investments (Treasuries),
investment pools, and mutual funds. At December 31, 2021, the City did not hold any investments that had a concentration
over 5%.
Fair Value Measurement – The City used fair value measurements to record fair value adjustments to certain assets and
liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value,
establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to
measure fair value, and requires expanded disclosures about fair value measurements.
In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the
valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is
based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and
liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation
techniques as follows:
Level 1 - Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active
markets accessible at the measurement date of identical financial assets and liabilities.
Level 2 - Financial assets and liabilities are values based on quoted prices for similar assets, or inputs that are
observable, either directly or indirectly for substantially the full term through corroboration with observable
market data.
Level 3 - Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset,
inputs that reflect the reporting entity's own assumptions about the assumptions market participants and would
use in pricing the assets.
61
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
As of December 31, 2021 the City's investments fall into the following categories of fair value:
Level 1 Level 2 Level 3 Total
U.S. Government Securities $ 995,071 $ - $ - $ 995,071
Municipal Obligations - 103,330 - 103,330
Negotiable Certificates of Deposit - 489,649 - 489,649
$ 995,071 $ 592,979 $ - 1,588,050
Investments and Deposits measured at
cost or amortized cost 40,469,781
$ 42,057,831
(reminader of this page left blank intentionally)
62
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2021 were as follows:
Beginning Ending
Balance Increase Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated
Land $ 6,157,677 $ - $ - $ - $ 6,157,677
Construction in progress 21,342,156 1,896,365 - (3,235,839) 20,002,683
Total not being depreciated 27,499,833 1,896,365 - (3,235,839) 26,160,360
Capital assets, being depreciated
Buildings 20,724,855 - - - 20,724,855
Other Improvements 77,098,361 35,114 - 3,235,839 80,369,314
Vehicles 5,011,511 351,315 (19,309) - 5,343,517
Machinery & equipment 6,367,824 114,626 (120,184) - 6,362,266
Total being depreciated 109,202,551 501,055 (139,493) 3,235,839 112,799,952
Less accumulated depreciation
Buildings (9,229,663)(511,227) - - (9,740,890)
Other Improvements (23,867,243)(1,783,795) - - (25,651,038)
Vehicles (2,939,262)(285,215) 19,309 - (3,205,168)
Machinery & equipment (3,526,964)(490,307) 120,184 - (3,897,087)
Total accumulated depreciation (39,563,132)(3,070,544) 139,493 - (42,494,183)
Total capital assets, being
depreciated, net 69,639,419 (2,569,489) - 3,235,839 70,305,769
Governmental activities capital
assets, net $ 97,139,252 $ (673,124) $ - $ - $ 96,466,129
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type Activities:
Capital assets, not being depreciated
Land $ 254,299 $ - $ - $ - $ 254,299
Construction in progress 7,384,725 4,379,403 - (2,334,032) 9,430,096
Total not being depreciated 7,639,024 4,379,403 - (2,334,032) 9,684,395
Capital assets, being depreciated
Buildings 9,428,662 - - - 9,428,662
Infrastructure 21,273,354 - - - 21,273,354
Other Improvements 28,564,685 - - 2,334,032 30,898,717
Vehicles 1,401,169 138,288 - - 1,539,457
Machinery & equipment 1,069,136 - - - 1,069,136
Total being depreciated 61,737,006 138,288 - 2,334,032 64,209,326
Less accumulated depreciation
Buildings (5,922,496)(259,251) - - (6,181,747)
Infrastructure (14,189,148)(387,191) - - (14,576,339)
Other Improvements (4,578,899)(888,296) - - (5,467,195)
Vehicles (851,569)(96,662) - - (948,231)
Machinery & equipment (745,959)(38,308) - - (784,267)
Total accumulated depreciation (26,288,071)(1,669,708) - - (27,957,779)
Total capital assets, being
depreciated, net 35,448,935 (1,531,420) - 2,334,032 36,251,547
Business-type activities capital
assets, net $ 43,087,959 $ 2,847,983 $ - $ - $ 45,935,942
63
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 159,308
Public safety 207,630
Highways and streets 1,580,967
Culture and recreation 423,492
Capital assets held by the government's internal service funds are 699,147
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities $ 3,070,544
Business-type activities:
Water Utility $ 314,037
Sewer Utility 328,362
Storm Sewer Utility 309,542
Refuse 45,697
Pavilion 477,971
Housing and Redevelopment Authority 194,099
Total depreciation expense - business-type activities $ 1,669,708
Construction commitments
The City has active construction projects as of December 31, 2021. The projects include streets and other improvements.
The City’s commitment with contractors related to these projects is $544,853.
On October 15, 2013 the City Council entered into a 14 year maintenance agreement with SEH Design/Build, Inc. for
inspection, maintenance, cleaning and painting of the city's two water towers. The remaining contract commitment totals
$255,000 and is being paid in annual installments.
6. INTERFUND RECEIVABLES AND PAYABLES
The following funds had amounts receivable from other funds, and the respective funds had equal amounts payable to
other funds at December 31, 2021:
Due from Other Funds
Economic
General Development Total
Due to other funds:
Non-major governmental $ 924,490 $ 684,650 $ 1,609,140
Pavilion 250,377 - 250,377
Non-major enterprise 200,000 - 200,000
Total due to other funds $ 1,374,867 $ 684,650 $ 2,059,517
The interfund receivables and payables are to eliminate negative cash between funds and to allow for development loans
or to facilitate a project or operations of another fund.
64
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31, 2021:
Transfers in
Permanent 2020B GO
Improvement Non-major Refunding
Revolving Governmental Bonds Total
Transfers out:
General $ - $ 20,000 $ - $ 20,000
Economic Development - 30,000 - 30,000
Tax Increment
Super Valu - 1,383,300 - 1,383,300
Water - 159,426 - 159,426
Sewer - 131,831 - 131,831
Storm Sewer - 155,504 - 155,504
Permanent Improvement
Revolving - 204,410 - 204,410
Non-major governmental 3,681,898 880,011 1,797,828 6,359,737
Non-major
business-type - 25,000 - 25,000
Total transfers in $ 3,681,898 $ 2,989,482 $ 1,797,828 $ 8,469,208
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
Unbudgeted transfers include the following:
1) Annual transfers from water, sewer, storm sewer and refuse funds for lease payments on new public works
facility.
2) An annual transfer, from the non-major governmental Communication funds to the Art Center Fund totaling
$80,000 to pay the original debt for building the facility.
3) Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments.
4) Transfers from non-major governmental funds to Permanent Improvement Revolving, water, sewer and storm
storm sewer and non-major governmental funds for bond proceeds.
5) Transfers from water, sewer and storm sewer to non-major governmental debt funds for bond payment
contributions.
8. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are
issued as 20-year serial bonds.
65
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
General Obligation Bonds
On April 6, 2021 the City issued $8,170,000 General Obligation Bonds series 2021A for street reconstruction and
utility improvements. The bonds bear interest at rates ranging from 1.15% to 2.00% , and have a final maturity date of
February 1, 2036.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Governmental activities 0.35 – 4.00% $ 55,880,000 $ 45,990,000
Governmental activities – refunding 0.50 – 5.00% 26,235,000 15,970,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2022 $ 5,410,000 $ 1,807,901
2023 5,685,000 1,622,248
2024 4,915,000 1,457,613
2025 5,255,000 1,293,469
2026 5,435,000 1,120,189
2027-2031 24,000,000 3,194,690
2032-2037 11,260,000 548,159
$ 61,960,000 $ 11,044,269
The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City,
and repayment monies are generated by the collection of special assessments and general levies.
General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Original Amount Current Amount
Street Improvements 2.00 – 3.125% $ 7,100,000 $ 1,200,000
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31 Principal Interest
2022 $ 120,000 $ 34,569
2023 120,000 30,969
2024 125,000 27,294
2025 130,000 23,469
2026 135,000 19,494
2027-2031 570,000 36,059
$ 1,200,000 $ 171,854
66
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
Revenue Bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service.
Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Original Amount Current Amount
Water construction & replacement 2.0 - 2.0 % 930,000 695,000
Water construction & replacement 3.0 - 4.0% 272,650 229,900
Water construction & replacement 3.0 - 5.0% 444,500 423,500
Water - refunding 2.0 - 5.0% 355,000 235,000
Water construction & replacement 2.0 - 5.0% 2,204,000 2,204,000
Water - refunding 2.0 - 3.0% 800,000 800,000
Water construction & replacement 1.5 - 2.0% 1,691,000 1,691,000
Sanitary sewer construction & replacement 3.0 - 4.0% 1,119,300 943,800
Sanitary sewer construction & replacement 3.0 - 5.0% 190,500 181,500
Sanitary sewer - refunding 2.0 - 5.0% 440,000 290,000
Sanitary sewer construction & replacement 2.0 - 5.0% 1,809,600 1,809,600
Sanitary sewer - refunding 2.0 - 3.0% 335,000 335,000
Sanitary sewer construction & replacement 1.5 - 2.0% 1,379,500 1,379,500
Storm sewer – refunding 0.5 – 2.9% 875,000 165,000
Storm sewer construction & replacement 3.0 - 4.0% 43,050 36,300
Storm sewer construction & replacement 2.0 - 5.0% 1,786,400 1,786,400
Storm sewer – refunding 2.0 - 3.0% 340,000 340,000
Storm sewer construction & replacement 1.5 - 2.0% 1,379,500 1,379,500
Pavilion construction & replacement 3.0 – 3.0% 3,285,000 2,930,000
Pavilion equipment certificates 2.0 - 3.0% 20,000 20,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31 Principal Interest
2022 $ 750,000 $ 511,797
2023 1,370,000 450,675
2024 1,320,000 413,068
2025 1,365,000 355,243
2026 1,285,000 310,768
2027-2031 6,510,000 957,590
2032-2036 5,275,000 236,461
$ 17,875,000 $ 3,235,602
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2021, the debt limit for the City is $68,712,107. Of the total debt, $27,435,000 of general obligation
and revenue bonds is applicable to the limit. The legal debt margin is $41,277,107.
67
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2021, was as follows:
Beginning Ending Due Within
Balance Additions Deductions Transfers Balance One Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds $ 12,220,000 $ - $ 1,115,000 $ - $ 11,105,000 $ 1,165,000
General obligation bonds 51,085,000 3,720,000 3,950,000 - 50,855,000 4,245,000
Total general obligation bonds 63,305,000 3,720,000 5,065,000 - 61,960,000 5,410,000
Special assessment bonds 4,400,000 - 3,200,000 - 1,200,000 120,000
Less deferred amounts
For issuance discounts (5,117) - 3,710 - (1,407) -
For issuance premiums 3,535,236 136,611 337,007 - 3,334,840 -
Total bonds payable 71,235,119 3,856,611 8,605,717 - 66,493,433 5,530,000
Compensated absences 1,297,554 1,238,600 1,554,051 - 982,103 287,284
Governmental activity
long-term liabilities $ 72,532,673 $ 5,095,211 $ 10,159,768 $ - $ 67,475,536 $ 5,817,284
Business-type activities:
Bonds payable:
Revenue bonds $ 15,800,000 $ 4,450,000 $ 2,375,000 $ - $ 17,875,000 $ 750,000
Less deferred amounts
For issuance discounts (1,492) - 717 - (775) -
For issuance premiums 1,054,138 162,163 86,015 - 1,130,286 -
Total bonds payable 16,852,646 4,612,163 2,461,732 - 19,004,511 750,000
Compensated absences 138,166 92,272 124,919 - 105,519 32,646
Business-type activity
long-term liabilities $ 16,990,812 $ 4,704,435 $ 2,586,651 $ - $ 19,110,029 $ 782,646
68
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
10. FUND BALANCES
At December 31, 2021, the City had various fund balances through legal restriction and City Council
authorization. Major fund balance appropriations at December 31, 2021 are shown on the various balance sheets
as segregations of the fund balance. The fund balances are as follows:
Total Nonspendable Restricted Committed Assigned Unassigned
General Fund $ 8,023,153 $ - $ 33,754 $ - $ - $ 7,989,399
Inventories 112,821 112,821 - - - -
Prepaids 132,392 132,392 - - - -
Community development 245,494 - - - 245,494 -
Total General Fund 8,513,860 245,213 33,754 - 245,494 7,989,399
Economic Development
Economic Development 4,511,489 6,888 1,300,000 3,204,601 - -
Total Economic Development Fund 4,511,489 6,888 1,300,000 3,204,601 - -
Tax Increment District Super Valu
Property held for resale 321,719 - 321,719 - - -
Tax Increment 7,045,715 - 7,045,715 - - -
Total Tax Increment District
Super Valu 7,367,434 - 7,367,434 - - -
Permanent Improvement Revolving
Deficit Fund Balance (75,222) - - - - (75,222)
Total Permanent Improvement
Revolving (75,222) - - - - (75,222)
Debt Service
GO Bond of 2020A 435,130 - 435,130 - - -
GO Refunding Bond of 2020B 477,866 - 477,866 - - -
Total Debt Service Fund 912,996 - 912,996 - - -
Nonmajor Governmental Funds
Rehab loans 15,742 - 15,742 - - -
Debt service 6,204,986 - 6,204,986 - - -
Tax increment 533,312 - 533,312 - - -
Parking improvements 1,667 1,667 - - - -
Communications 281,129 6,888 135,502 138,739 - -
Capital Projects 1,634,943 - 1,293,429 - 341,514 -
Race and Equity Initiative 4,829 - 4,829 - - -
Deficit fund balance (1,523,616) - - - - (1,523,616)
Total Nonmajor Funds 7,152,992 8,555 8,187,800 138,739 341,514 (1,523,616)
Total Fund Balances $ 28,383,549 $ 260,656 $ 17,801,984 $ 3,343,340 $ 587,008 $ 6,390,561
69
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
11. PENSION PLAN OBLIGATIONS
1. Defined Benefit Pension Plans - Statewide
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by
the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are
established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined
benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code.
1. General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan. General
Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social
Security.
2. Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by local relief
associations, now covers all police officer and firefighters hired since 1980. Effective July 1, 1999, the Police and
Fire Plan also covers police officers and firefighters belonging to local relief associations that elected to merge with
and transfer assets and administration to PERA.
Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can
only be modified by the state legislature. Vested, terminated employees who are entitled to benefits, but are not
receiving them yet, are bound by the provision in effect at the time they last terminated their public service.
1. General Employees Plan Benefits
General Employees Plan benefits are based on a member's highest average salary for any five successive years of
allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for
PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for
Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent for each
additional year. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal
90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for
unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50
percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1
percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a
full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients
receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the
effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024,
or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66
for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to
normal retirement.
70
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
2. Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for Police and Fire
Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty
years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For Police and Fire
Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal
at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase will be fixed at 1
percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before
the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at
least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a
reduced prorated increase.
B. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
1. General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50%, respectively, of their annual covered salary in calendar
year 2021. The City was required to contribute 7.50% for Coordinated Plan members. The City’s contributions to the
General Employees Fund for the years ending December 31, 2021, 2020 and 2019, were $428,662, $421,975, and
$428,720. The City’s contributions were equal to the required contributions as set by state statute.
2. Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.80% percent of their annual covered salary in fiscal year
2021 and the City was required to contribute 17.70% for Police and Fire members. The City’s contributions to the
Police and Fire Fund for the years ending December 31, 2021, 2020, and 2019 were $618,899, $607,594, and
$563,971. The City’s contributions were equal to the required contributions as set by state statute.
C. Pension Costs
1. General Employees Fund Pension Costs
At December 31, 2021, the City reported a liability of $3,326,679 for its proportionate share of the General Employees
Fund's net pension liability. The City’s net pension liability reflected a decrease due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s
contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net
pension liability associated with the City totaled $101,617. The net pension liability was measured as of June 30, 2021,
and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of
that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2020, through June 30, 2021, relative to the
total employer contributions received from all of PERA’s participating employers. The City’s proportion was .07790
percent which was a decrease of (0.0011) percent from its proportion measured as of June 30, 2020.
71
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
Description Net Pension
Liability
The City's proportionate share of the net pension
liablitiy
$ 3,326,679
State of Minnesota's proportionate share of
the net pension liability associated with the City
101,617
Total $ 3,428,296
For the year ended December 31, 2021, the City recognized negative pension expense of ($52,986) for its proportionate
share of the General Employee Fund’s pension expense. In addition, the City recognized an additional $8,199 as
pension expense (grant revenue) for its proportionate share of the state of Minnesota's contribution of $16 million to the
General Employees Fund.
At December 31, 2021, the City reported its proportionate share of the General Employees Fund’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Description
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual economic
experience
$ 21,146 $ 101,972
Changes of assumptions 2,031,201 75,108
Net difference between projected and actual earnings on
pension plan investments
- 2,880,173
Changes in proportion - 90,386
City contributions subsequent to the measurement date 219,562
Total $ 2,271,909 $ 3,147,639
A total of $219,562 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year Ended June 30
2022 $ (195,296)
2023 (89,863)
2024 (24,320)
2025 (785,813)
2. Police and Fire Fund Pension Costs
At December 31, 2021, the City reported a liability of $2,285,578 for its proportionate share of the Police and Fire
Fund's net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportion of the net pension liability was based on the City's contribution received by PERA during the measurement
period for employer payroll paid dates from July 1, 2020, through June 30, 2021, relative to the total employer
contribution received from all of PERA's participating employers. The City's proportion was 0.2961 percent which
was a (0.0028) percent decrease from its proportionate share measured as of June 30, 2020.
72
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June
30, 2021. The contribution consisted of $9 million in direct state aid that does meet the definition of a special
funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding
situation. The $9 million direct state was paid on October 1, 2020. Thereafter, by October 1 of each year, the
state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is
earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until the
State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever
occurs later. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state
contributions, although we do not anticipate them to be phased out during the fiscal year ending 2022.
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period
Only (pension allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need
to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under
GASB 68 special funding situation accounting and financial reporting requirements. For the year ended
December 31, 2021, the City recognized pension expense of $111,747 for its proportionate share of the Police
and Fire Plan’s pension expense. In addition, the City recognized an additional $18,712 as pension expense
(grant revenue) for its proportionate share of the State of Minnesota’s pension expense for the contribution of
$9 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension
Plan pension allocation schedules for the $9 million in supplemental state aid. The City also recognized
$26,649 for the year ended December 31, 2021 as revenue and an offsetting reduction of net pension liability for
its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund.
At December 31, 2021, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Description
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual economic
experience
$ 443,082 $ 49,595
Changes of assumptions 3,502,748 1,353,489
Net difference between projected and actual earnings on
pension plan investments
- 4,358,530
Changes in proportion 224,978 147,851
City contributions subsequent to the measurement date 305,758 -
Total $ 4,476,566 $ 5,909,465
73
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
A total of $305,758 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Year Ended June 30
2022 $ (1,459,007)
2023 (256,582)
2024 (269,864)
2025 (488,600)
2026 735,396
D. Actuarial Assumptions
The total pension liability in the June 30, 2021, actuarial valuation was determined using and individual entry-age
normal actuarial cost method. the long term rate of return on pension plan investments used in the determination of
the total liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions
from a number of national investment consulting firms. The review provided a range of return investment return rates
deemed to be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of
reasonableness for financial reporting purposes:
Inflation is assumed to be 2.25 percent for the General Employees Plan. Benefit increases after retirement are
assumed to be 1.25 percent for the General Employees Plan.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table.
Mortality rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The
tables are adjusted slightly to fit PERA's experience.
Actuarial assumptions used in the June 30, 2021, valuation were based on the results of actuarial experience studies.
The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The
recommended assumptions for those plans were adopted by the Board and will be effective with the July 1, 2021
actuarial valuations if approved by the Legislature.
The following changes in actuarial assumptions occurred in 2021:
General Employees Plan
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for
financial reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions
There were no changes in plan provisions since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for
financial reporting purposes.
The inflation assumption was changed from 2.50 percent to 2.25 percent.
The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
74
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the
Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to
MN-2020.
The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant
mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public
Safety disabled annuitant mortality table (with future mortality improvement according to Scale
MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study.
The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The
changes result in slightly more un-reduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,
proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
There have been no changes in plan provisions.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness
on a regular basis of the long-term expected rate of return on a regular basis using a building-block method in which
best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are
combined to produce an expected long-term rate of return by weighting the expected future rates of return by the
target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each
major asset class are summarized in the following table:
Asset Class Target Allocation Long-Term Expected Real
Rate of Return
Domestic Stocks 33.5%5.10%
International Stocks 16.5%5.30%
Bonds (Fixed
Income)
25.0%0.75%
Alternative Assets
(Private Markets)
25.0%5.90%
Total 100%
E.Discount Rate
The discount rate used to measure the total pension liability in 2021 was 6.5 percent. The projection of cash flows
used to determine the discount rate assumed that contributions from plan members and employers will be made at
rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund
was projected to be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments
to determine the total pension liability.
75
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
F.Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in,
calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share
of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one
percentage point higher than the current discount rate:
Sensitivity of Net Pension Liability at Current Single Discount Rate
General Employees Fund Police and Fire Fund
1% Lower 5.5% $ 6,784,727 5.5% $ 7,256,324
Current Discount Rate 6.5% $ 3,326,679 6.5% $ 2,285,578
1% Higher 7.5% $ 489,140 7.5% $(1,789,202)
G. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA
financial report that includes financial statements and required supplementary information. That report may be
obtained on the Internet at www.mnpera.org.
2. Hopkins Fire Relief Association (HFRA)
A. Plan Description
Firefighters of the City of Hopkins are members of the Hopkins Fire Department Relief Association. The
Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The
plan was established in 1909 and is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and
the Association’s by-laws. It is governed by a Board of Trustees made up of six members elected by the members
of the Association for three year terms, and the Mayor, City Clerk and Fire Chief, who serve as ex-officio voting
members of the Board of Trustees. As of December 31, 2021, membership includes 34 active participants and 14
vested terminated employees entitled to benefit but not yet receiving them
The Association issues a publicly available financial report that includes financial statements and required
supplementary information of the Hopkins Fire Relief Association. That report may be obtained by writing to the
Hopkins Fire Relief Association, 1010 First St S, Hopkins, MN 55343.
For financial reporting purposes, the Association’s financial statements are not included with the City financial
statements because the Association is not a component unit of the City. The Association does not have any
component units.
B. Benefits Provided
The Association operates under a defined benefit plan. The pension liability is calculated by the number of active
service years multiplied by a set benefit level. The Association’s current level is at $7,900 per active year. According
to the bylaws of the Association and pursuant to Minnesota statute 424A.02, subdivisions 2 and 4, members who retire
with less than 20 years of service and have reached the age of 50 years and have completed at least ten years of active
membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member’s
service pension for the completed years of service times the applicable non-forfeitable percentage of pension. The
defined retirement benefits are based on members’ years of service. Vesting begins after the 10th year of service with a
60% benefit increasing by 4% per year to 100% after the 20th year of service.
76
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
If a member of the Association shall become totally and permanently disabled, with a service related disability (injured
in the line of duty) to the extent that a physician or surgeon acceptable to the Board shall certify that such disability
will permanently prevent said member from performing said member’s duties in the Department, the Association shall
pay to such member the sum of the current pension amount for each year and fractions of a year that the member has
served as an active member of the Department, without regard to minimum or partial vesting requirements. If a
member who has received such a disability pension should subsequently recover and return to active duty in the
Department, any amount paid to said member as a disability pension shall be deducted from said member’s service
pension.
Upon the death of any member of the Association who is in good standing at the time of said member’s death, the
Association shall pay to the surviving spouse, if any, and if there is no surviving spouse, to child or children, if any,
and if no child or children survive, to the estate of such deceased member, the credited sum of said member’s pension.
C. Contributions
Minnesota Statues Chapter 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is
funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota
statues and voluntary City contributions (if applicable). The State of Minnesota contributed $126,228 in fire state aid
to the plan on behalf of the City Fire Department for the year ended December 31, 2021, which was recorded as
revenue. Required employer contributions are calculated annually based on statutory provisions. The City also made
additional voluntary contributions of $52,000 to the plan..
77
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
D. Pension Costs
At December 31, 2021, the City reported an asset of $736,802 for the Hopkins Volunteer Firefighter Fund. The net
pension asset was measured as of December 31, 2021. The total pension liability used to calculate the net pension
asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data
certified by the Department. The following table presents the changes in net pension liability (asset) during the year.
Total Plan Net
Pension Fiduciary Pension
Liability (Asset)Net Position Liability (Asset)
(a)(b)(c)
Beginning Balance January 1, 2021 $ 3,207,730 $ 3,705,687 $ (497,957)
Changes for the Year
Service cost 115,500 - 115,500
Interest on pension liability (asset) 191,808 - 191,808
Plan changes 37,841 - 37,841
Municipal contributions - 42,000 (42,000)
Non employer contribution - 122,840 (122,840)
Projected investment return - 220,800 (220,800)
(Gain)/loss (177,308) 23,046 (200,354)
Benefit payments (508,600)(508,600) -
Administrative expenses - (2,000) 2,000
Total Net Changes (340,759)(101,914)(238,845)
Ending Balance December 31, 2021 $ 2,866,971 $ 3,603,773 $ (736,802)
For the year ended December 31, 2021, the City recognized negative pension expense of ($287,831).
At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources, its
contributions subsequent to the measurement date, related to pension from the following sources:
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual economic
experience
$ - $ 266,581
Changes of assumptions 63,764 -
Net difference between projected and actual earnings on
pension plan investments
- 96,502
City contributions subsequent to the measurement date 178,228 -
Total $ 241,992 $ 363,083
Deferred Outflows of resources totaling $241,992 related to pensions resulting from the City's contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to the plan will be
recognized in pension expense as follows:
78
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
Year Ended December 31
Pension Expense
Amount
2022 (78,802)
2023 (22,975)
2024 (126,641)
2025 (27,794)
2026 (23,184)
Thereafter (19,923)
E.Actuarial Assumptions
The total pension liability at December 31, 2021, was determined using the entry age normal actuarial cost method
and the following actuarial assumptions:
Salary Increases 2.50% per year
Interest on Deferred Amounts 4.00% per year
Investment Rate of Return 5.75%
20 Year Municipal Bond Yield NA (no unfunded liabilities)
There were no changes in actuarial assumptions in 2021.
F. Discount Rate
The discount rate used to measure the total pension liability was 5.75 percent. The projection of cash flows used to
determine the discount rate assumed that contributions to the plan will be made as specified in statue. Based on that
assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the
total.
G. Pension Liability Sensitivity
The following presents the City's net pension liability asset for the plan, calculated using the discount rate disclosed in
the preceding paragraph, as well as what the City’s net pension liability asset would be if it were calculated using a
discount rate that is one percentage point lower or one percentage point higher than the current discount rate:
Current
1% Decrease Discount Rate 1% Increase
Defined Benefit Plan $ (657,860)$ (736,802)$ (814,416)
Discount Rate 4.75%5.75%6.75%
79
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
H. Asset Allocation
The long-term expected rate of return on pension plan investments was set based on the plan's target investment
allocation along with long-term return expectations by asset class. All economic assumptions were based on input from
various published sources and projected future financial data available. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Equities 64.00 % 7.10 %
Fixed Income 32.00 2.90
Cash 2.00 1.80
Other 2.00 7.00
Total 100.00 %
(reminder of this page left blank intentionally)
80
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
I. Plan’s Fiduciary Net Position
The pension plan's fiduciary net position has been determined on the same basis used by the pension plan. The
pension plan is on an accrual-basis of accounting. Revenues are recorded when earned and expenses (including
benefit payments) are recorded when a liability is incurred. Pension plan investments are valued at fair market value
as of year-end.
Detailed information about the Plan's fiduciary net position is available in a separately-issued report. That report may
be obtained by writing to the Hopkins Fire Relief Association, 1010 First St. S., Hopkins, MN 55343.
Information about the changes in the Plan's net pension liability (asset) is as follows:
2021
Total Pension Asset
Service Cost $ 115,500
Interest 191,808
Changes of Assumptions 37,841
Gain or loss (177,308)
Benefit Payments (508,600)
Net Change in Total Pension Liability (340,759)
Total Pension Liability - Beginning 3,207,730
Total Pensions Liability - Ending (a) 2,866,971
Plan Fiduciary Net Position
Contributions - Employer 42,000
Contributions - State 122,840
Projected investment income 220,800
Net investment income 23,046
Benefit Payments (508,600)
Administrative Expenses (2,000)
Net Change in Fiduciary Net Position (101,914)
Fiduciary Net Position - Beginning 3,705,687
Fiduciary Net Position - Ending (b) 3,603,773
Association's Net Pension Liability/(Asset) - Ending (a) - (b) $ (736,802)
Fiduciary Net Position as a Percentage of the Total Pension Liability (B/A)125.70%
Covered Employee Payroll N/A
Net Pension Liability/(Asset) as a Percentage of Covered-Employee Payroll N/A
81
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
J. Aggregate Pension Costs
General
Employees
Plan
Police and
Fire Plan Fire Relief Total
Pension Expense $ (44,787) $ (93,035) $ 132,389 $ (5,433)
Net Pension Liability 3,326,679 2,285,578 - 5,612,257
Net Pension Asset - - (736,802)(736,802)
Deferred Outflows 2,271,909 4,476,566 241,992 6,990,466
Deferred Inflows 3,147,639 5,909,465 363,083 9,420,187
12. OTHER POST EMPLOYMENT BENEFIT PLAN
The City engaged an actuary to determine the City’s liability for post-employment healthcare benefits other than
pensions as of December 31, 2021, for this single employer defined benefit OPEB plan.
A. Plan Description
The City's single employer defined benefit OPEB plan provides OPEB for all permanent full-time employees of the
City. The City's OPEB plan is administered by the City. The City does not administer a trust and therefore does not
issue a separate financial statements. The City is funding this liability on a pay-as-you-go-basis.
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. The City provides
subsidized benefits to active employees, who were hired prior to July 1, 1993 and have been with the City for at least
ten years and are either (1) age 60 year or older or (2) eligible for full PERA retirement benefits. Employees retiring
by June 30, 2007 will receive full single health and life insurance coverage until age 65; employees retiring between
July 1, 2007 and December 31, 2009 will receive $500 per month towards the cost of single health and life insurance
until age 65; and employees retiring after December 31, 2009 will receive $15 per month times years of service
(maximum of $500 per month) towards the cost of single health and life insurance until age 65. Currently 16
employees meet those eligibility requirements. Benefit and eligibility provisions are established through negotiations
and are renegotiated every two years.
Active plan participants entitled to
but not yet receiving benefit
payments 106
Retirees or spouses currently
receiving benefit payments 14
Total Participants 120
82
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
B. Actuarial Methods and Assumptions
The City’s total OPEB liability of $1,066,957 was measured as of December 31, 2021, and the total OPEB
liability used to calculate the total OPEB liability was determined by an actuarial valuation as of January 1,
2020. The total OPEB liability in the January 1, 2020 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate 2.00%
Expected Long-Term Investment Return 2.0%, net of investment expense
Inflation Rate 2.50%
Payroll Growth Rate 3.25%, but vary based on years of service
Medical Trend Rate 6.25% in decreasing to 5% over 6 years
The actuarial assumptions used in the December 31, 2021 valuation were based on input from a variety of published
sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the
source information as well as for consistency with the other economic assumptions.
C. Changes in the Total OPEB Liability
Increase (Decrease)
Total OPEB Liability
Balances at December 31, 2020 $ 1,033,768
Changes for the year:
Service Cost 69,455
Interest 30,328
Assumption Changes 49,099
Benefit payments (115,693)
Net Changes 33,189
Balances as of December 31, 2021 $ 1,066,957
D. Sensitivity of the total OPEB Liability
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if
it were calculated using a discount rate that is 1-percentage point lower or 1-percentage-point higher than the current
discount rate.
1% Decrease Discount Rate 1% Increase
(1.00)%(2.00)%(3.00)%
Total OPEB Liability $ 1,135,883 $ 1,066,957 $ 1,001,914
83
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if
it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.5 percent decreasing to 4.00
percent) or 1-percentage higher (7.5 percent decreasing to 6.00 percent) than the current healthcare cost trend rates:
1% Decrease in
trend rates
Healthcare Cost
Trend Rates
(6.5%
decreasing to
5.0%)
1% Increase in
trend rates
Total OPEB
Liability
$ 967,230 $ 1,066,957 $ 1,186,411
E. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2021, the City recognized OPEB expense of $33,189. At December 31, 2021, the
City reported deferred inflows and outflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes in Actuarial assumptions $ 67,676 $ 17,236
Net Difference between Projected and
Actual Earnings on Plan Investments 78,325 -
Contributions to OPEB subsequent to the
measurement date
119,046 -
Total $ 265,047 $ 17,236
The City's contributions subsequent to the measurement date of $119,046, reported as deferred outflows of resources,
will be recognized as a reduction of the total OPEB liability in the city's fiscal year ended December 31, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year ended
December 31
OPEB Expense Amount
2022 $ 14,764
2023 14,764
2024 14,764
2025 14,764
2026 14,764
Thereafter 54,945
84
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
F. Schedule of Changes in City's Total OPEB Liability
2021
Total OPEB liability
Service cost $ 69,455
Interest 30,328
Changes in benefit terms -
Differences between expected and actual
experience
-
Changes in assumptions 49,099
Benefit payments (115,693)
Net change in total OPEB liability $ 33,189
Total OPEB liability - beginning $ 1,033,768
Total OPEB liability - ending $ 1,066,957
Covered - employee payroll $ 9,094,678
City's total OPEB liability as a percentage of
covered employee payroll 11.7 %
13. REHABILITATION LOANS RECEIVABLE
The City makes rehabilitation loans to residential and commercial entities within the City. Residential loans are made
for 20 year periods at 3% interest. A mortgage against the property improved is required and City staff is responsible
to follow-up any delinquent accounts. Loan repayments are made to Matrix Financial Services, a loan service
bureau, which charges a fee of $5.95 per month per loan. Principal and interest are forwarded to the City monthly
with loan collection and loan status reports. Rehabilitation loan activity is a function of the Economic Development
Fund, and the Hennepin County CDBG Funds. Loans become due in full upon sale of property. Rehabilitation loans
receivable amounted to $ 15,710 at December 31, 2021 and are recorded in the Hennepin County CDBG non-major
special revenue funds.
14. CLAIMS AND LITIGATION
The City had the usual and customary types of miscellaneous claims pending at year-end, which are of a minor nature
and usually all covered by insurance carried for that purpose. The City carries a $1,000,000 Public Official Liability
Insurance policy with public entity and employee endorsement.
15. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City participates in a public entity risk pool to mitigate
its exposure to these risks. Workers compensation and property and liability coverage are provided through a pooled
self-insurance plan with other cities. Settled claims have not exceeded insurance coverage in any of the past three
fiscal years and no significant reductions in coverage from the prior year. The City pays an annual premium based on
prior claims history for its workers compensation coverage. The public entity risk pool is responsible for the
payment of all associated claims. The City has a $20,000 deductible per occurrence with a maximum per year out of
pocket of $40,000, for its property and liability coverage. The public entity risk pool is responsible for all losses in
excess of $20,000 per occurrence and all losses occurring after the $40,000 maximum City out of pocket costs.
85
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2021
16. TAX ABATEMENTS
The City enters into property tax abatement agreements through the use of tax increment financing districts with
local businesses under various Minnesota Statutes. Under these statutes the City annually abates taxes collected
above the districts' base tax capacity which is established during adoption of the tax increment district. These
agreements are established to foster economic development and redevelopment through creating jobs, removing
blight and providing affordable housing. The City uses Minnesota Statutes 469.001 to 469.047 and 469.174 to
469.179 (The Tax Increment Act) to create these districts.
For the year ended December 31, 2021, the City has six agreements established under Minnesota Statute 469.174 to
469.179 (The Tax Increment Act) which resulted in property taxes totaling $1,257,427 being abated. The following
agreement exceeded 10 percent of the total amount abated.
A pay as you go note to convert substandard property into an office complex. The abatement amounted to
$672,857.
A pay as you go note to redevelop substandard property into an apartment complex and parking facility.
The abatement amounted to $484,241.
17. SUBSEQUENT EVENTS
At the April 5, 2022 meeting, the City Council approved issuance and sale of $7,800,000 General Obligation Bonds,
Series 2022A. Proceeds from the 2022A bonds will be used for the City's 2022/2023 residential road reconstruction,
utility and mill and overlay projects. The issuance was offered for sale on April 26, 2022.
18. COVID-19
On January 30, 2020, the World Health City (“WHO”) announced a global health emergency because of a new strain of
coronavirus (“COVID-19”) and the risks to the international community as virus spreads globally. On March 11, 2020,
the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. In response
to the pandemic, the State of Minnesota has issued stay-at-home orders and other measures aimed at slowing the spread of
the coronavirus.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development
and fluidity of this situation, the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its
financial condition, liquidity, and future revenue collection, and therefore any prediction as to the ultimate impact on the
City’s financial condition, liquidity, and future results of its revenue collections is uncertain.
19. Prior Period Adjustment
During 2021, adjustments were made to beginning balances. The adjustment was due to not propertly recognizing special
assessment receivable and revenue in the prior year when the balances were certified to the County Auditor.
Net Position
Governmental Activities
Balance - January 1, as previously stated $ 50,619,069
Prior period adjustment 2,123,522
Total prior period adjustments 2,123,522
Balance - January 1, as restated $ 52,742,591
86
REQUIRED SUPPLEMENTARY
INFORMATION
87
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
1. OTHER POSTEMPLOYMENT BENEFITS PLAN
Schedule of Changes in City's Total OPEB Liability and Related Ratios
Measurement Date Measurement Date Measurement Date Measurement Date
January 1, 2021 January 1, 2020 January 1, 2019 January 1, 2018
Total OPEB Liability
Service cost $ 69,455 $ 58,213 $ 49,577 $ 52,550
Interest 30,328 35,759 33,554 36,421
Difference between expected and actual experience - 97,907
Changes of assumptions 49,099 29,358 (25,854) -
Benefit payments (115,693)(139,243)(144,260)(201,014)
Net change in total OPEB liability 33,189 81,994 (86,983)(112,043)
Total OPEB liability - beginning 1,033,768 951,774 1,038,757 1,150,800
Total OPEB liability - ending $ 1,066,957 $ 1,033,768 $ 951,774 $ 1,038,757
Covered employee payroll $ 9,094,678 $ 8,808,405 $ 8,223,045 $ 7,983,539
City's total OPEB liability as a percentage of the covered
employee payroll
11.73%11.74%11.57%13.01%
Less than ten years presented due to information not available. Will add additional years as they become
available.
2. SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
PERA
- General Employees Retirement Fund
Measurement
Date
City's
Proportionate
(Percentage)
of the
Net Pension
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
(a)
State's
Proportionate
Share
(Amount) of
the Net Pension
Liability
Associated with
the City of
Hopkins
(b)
City's
Proportionate
Share of the Net
Pension Liability
and the State's
Proportionate
Share of the Net
Pension Liability
Associated with
the City of
Hopkins
(a+b)
City's
Covered
Payroll**
(c)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll (a/c)
Plan
Fiduciary
Net
Position
as a
Percentage
of the Total
Pension
Liability
June 30, 2021 0.0779% $ 3,326,679 $ 101,617 $ 3,428,296 $ 5,607,708 59.32%87.00%
June 30, 2020 0.0790% 4,736,411 146,169 4,882,580 5,640,162 83.98%79.06%
June 30, 2019 0.0849% 4,456,194 138,494 4,594,688 5,790,736 76.95%80.23%
June 30, 2018 0.0811% 4,499,095 147,655 4,646,750 5,969,280 75.37%79.53%
June 30, 2017 0.0806% 5,145,451 64,662 5,210,113 5,229,107 98.40%75.90%
June 30, 2016 0.0833% 6,763,547 88,334 6,851,881 5,015,680 134.85%68.90%
June 30, 2015 0.0831% 4,306,673 - 4,306,673 4,802,000 89.68%78.20%
88
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
PERA - Public Employees Police and Fire Fund
Measurement
Date
City's
Proportionate
(Percentage)
of the
Net Pension
City's
Proportionate
Share (Amount)
of the Net
Pension Liability
(Asset)
(a)
State's
proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
of Hopkins (b)
City's
proportionate
Share of the Net
Pension Liability
and the State's
Proportionte
Share of the Net
Pension Liability
Associated with
the City of
Hopkins (a+b)
City's
Covered
Payroll** (c)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll (a/c)
Plan Fiduciary
Net Position
as a Percentage
of the Total
Pension
Coverage
June 30, 2021 0.2961% $ 2,285,578 $ 102,749 $ 2,388,327 $ 3,498,947 65.32%93.70%
June 30, 2020 0.2989% 3,939,822 92,803 4,032,625 3,385,801 116.36%87.19%
June 30, 2019 0.3098% 3,298,134 - 3,298,134 3,207,841 102.81%89.26%
June 30, 2018 0.2918% 3,110,289 - 3,110,289 2,879,284 108.02%84.84%
June 30, 2017 0.2800% 3,780,333 - 3,780,333 2,831,574 133.51%85.43%
June 30, 2016 0.2800% 11,236,887 - 11,236,887 2,744,827 409.38%63.90%
June 30, 2015 0.2690% 3,056,469 - 3,056,469 2,540,691 120.30%86.60%
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for
the year ending December 31, 2015. The schedules within the Required Supplementary Information Section
required a ten year presentation. Information prior to 2015 is not available.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
3. SCHEDULES OF THE CITY'S CONTRIBUTIONS
PERA - General Employees Retirement Fund
Fiscal
Year
Ending
Statutorily
Required
Contributions
(a)
Contributions
in Relation to
the Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered
Payroll **
(d)
Contributions as a
Percentage of
Covered Payroll
(b/d)
December 31, 2021 $ 428,662 $ (428,662) $ - $ 5,715,487 7.50%
December 31, 2020 421,975 (421,975) - 5,626,333 7.50%
December 31, 2019 429,188 (429,188) - 5,722,507 7.50%
December 31, 2018 447,696 (447,696) - 5,969,280 7.50%
December 31, 2017 392,183 (392,183) - 5,229,107 7.50%
December 31, 2016 376,176 (376,176) - 5,015,680 7.50%
December 31, 2015 360,150 (360,150) - 4,802,000 7.50%
89
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
PERA - Public Employees Police and Fire Fund
Fiscal
Year
Ending
Statutorily
Required
Contributions
(a)
Contributions
in Relation to
the Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered
Payroll **
(d)
Contributions as a
Percentage of
Covered Payroll
(b/d)
December 31, 2021 $ 618,899 $ (618,899) $ - $ 3,496,605 17.70%
December 31, 2020 607,594 (607,594) - 3,432,734 17.70%
December 31, 2019 563,869 (563,869) - 3,326,661 16.95%
December 31, 2018 488,856 (488,856) - 3,017,630 16.20%
December 31, 2017 458,715 (458,715) - 2,831,574 16.20%
December 31, 2016 444,662 (444,662) - 2,744,827 16.20%
December 31, 2015 411,592 (411,592) - 2,540,691 16.20%
* The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for
the year ending December 31, 2015. The schedules within the Required Supplementary Information Section
required a ten year presentation, but does not require retroactive reporting. Information prior to 2015 is not
available.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
4. SCHEDULE OF THE CITY'S CONTRIBUTION TO THE HOPKINS FIRE RELIEF FUND
Last Ten Years
Fiscal
Year
Ending
December 31
Actuarially
determined
contribution(a)
Contributions in
Relation to the
Statutorily
Required
Contributions
(b)
Contribution
Deficiency
(Excess)
(a-b)
2021 $ 126,228 $ (178,228) $ (52,000)
2020 164,840 (164,840) -
2019 152,191 (152,191) -
2018 148,988 (148,988) -
2017 143,749 (143,749) -
2016 137,010 (137,010) -
2015 136,009 (136,009) -
2014 126,474 (126,474) -
2013 127,009 (127,009) -
2012 99,335 (99,335) -
90
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
5. SCHEDULE OF CHANGES IN THE NET PENSION ASSET AND
RELATED RATIOS FOR THE HOPKINS FIRE RELIEF FUND
Information about the changes in the Plan's net pension liability (asset) is as follows:
2020 2019 2018 2017 2016 2015 2014
Total Pension Asset
Service Cost $ 115,500 $ 104,125 $ 101,467 $ 98,992 $ 81,771 $ 85,760 $ 77,831
Interest 191,808 180,927 164,469 154,035 171,936 157,795 139,957
Differences Between Expected and Actual Experience - - (26,108) - (262,107) - -
Changes of Assumptions - - 130,083 - 83,549 - -
Plan Changes 37,841 216,414 - - 212,877 - -
Gain or Loss (177,308)
Benefit Payments (508,600)(168,900)(49,576)(127,545)(138,785)(134,745)(13,923)
Net Change in Total Pension Liability (340,759) 332,566 320,335 125,482 149,241 108,810 203,865
Total Pension Liability - Beginning 3,207,730 2,875,164 2,554,829 2,429,347 2,280,106 2,171,296 1,967,431
Total Pension Liability - Ending (a) 2,866,971 3,207,730 2,875,164 2,554,829 2,429,347 2,280,106 2,171,296
Plan Fiduciary Net Position
Contributions 164,840 152,191 148,988 143,749 137,010 136,009 126,474
Net Investment Income 243,846 578,856 (305,016) 460,846 186,692 (117,135) 77,066
Benefit Payments (508,600)(168,900)(49,576)(127,545)(138,785)(134,745)(13,923)
Administrative Expenses (2,000)(8,780)(11,805)(12,186)(11,761)(11,783)(12,295)
Net Change in Fiduciary Net Position (101,914) 553,367 (217,409) 464,864 173,156 (127,654) 177,322
Fiduciary Net Position - Beginning 3,705,687 3,152,320 3,369,729 2,904,865 2,731,709 2,859,363 2,682,041
Fiduciary Net Position Ending (b) 3,603,773 3,705,687 3,152,320 3,369,729 2,904,865 2,731,709 2,859,363
Association's Net Pension Liability/(Asset) - Ending (a) -
(b) $(736,802) $(497,957) $(277,156) $(814,900) $(475,518) $(451,603) $(688,067)
Fiduciary Net Position as percentage of the Total Pension
Liability 125.70%115.52%109.64%131.90%119.57%119.81%131.69%
Covered Payroll N/A N/A N/A N/A N/A N/A N/A
Net Pension Liability/(Asset) as a Percentage of Covered
Payroll N/A N/A N/A N/A N/A N/A N/A
Note: Information prior to 2014 is unavailable.
91
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
Notes to Required Supplementary Information
PERA - General Employees Retirement Fund
2021 Changes
Changes in Actuarial Assumptions
· The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for
financial reporting purposes.
· The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions
· There were no changes in plan provisions since the previous valuation.
2020 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the June 30, 2019 experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study.
The changes result in more un-reduced (normal) retirements and slightly fewer Rule of 90 and early
retirements.
Assumed rates of termination were changed as recommended in the June 30, 2019 experience
study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and
slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019 experience study.
The change results in fewer predicted disability retirements for males and females.
The base mortality tabel for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled
annuitants was changed from the RP-2014 disabled assuitant mortality table to the Pub-2010
General/Teacher disabled annuitant mortality table, with adjustments.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing 100% Joint &
Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the
Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% thereafter. Augmentation was eliminated for privatizations occurring
after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions:
The employer supplemental contribution was changes prospectively, decreasing form $31.0
million to $21.0 million per year. The State's special funding contribution was changed prospectively,
requiring $16.0 million due per year through 2031.
92
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017
The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.5
percent per year thereafter to 1.25 percent per year.
2017 Changes
Changes in Plan Provisions:
The State's special funding contribution increased from $6 million to $16 million.
Changes in Actuarial Assumptions
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members
and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for
active member liability, 15.00 percent for vested deferred member liability and 3.00 percent for non-vested
deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all
years to 1.00 percent per year through 2044 and 2.50 percent per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2035 and 2.5 percent per year thereafter to 1.00 percent per year for all years.
The assumed investment return was changed from 7.90 percent to 7.50 percent. The single
discount rate was changed from 7.90 percent to 7.50 percent.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25
percent for payroll growth and 2.50 percent for inflation.
2015 Changes
Changes in Plan Provisions
On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan
net position by $892 million. Upon consolidation, state and employer contributions were revised; the State's
contribution of $6 million, which meets the special funding situation definition, is due September 2015
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2035 and 2.50 percent per year
thereafter.
93
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
PERA - Public Employees Police and Fire Fund
2021 Changes
Changes in Actuarial Assumptions
· The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for
financial reporting purposes.
· The inflation assumption was changed from 2.50 percent to 2.25 percent.
· The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
· The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to
the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from
MP-2019 to MN-2020.
· The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant
mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010
Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale
MP-2020).
· Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience
study. The overall impact is a decrease in gross salary increase rates.
· Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study.
The changes result in slightly more un-reduced retirements and fewer assumed early retirements.
· Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations.
· Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,
proposed rates result in more projected disabilities.
· Assumed percent married for active female members was changed from 60 percent to 70 percent.
Minor changes to form of payment assumptions were applied.
Changes in Plan Provisions
· There were no changes in plan provisions since the previous valuation.
2020 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019
Changes in Plan Provisions:
There have been no changes since prior valuation.
2019 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018
Changes in Plan Provisions:
There have been no changes since prior valuation.
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017
2017 Changes
Changes in Actuarial Assumptions:
Assumed salary increased were changed as recommended in the June 30, 2016 experience study.
The net effect is proposed rates that average 0.34 percent lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested
members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generation
table to the RP-2014 fully generation tables (with a base year of 2006), with male rates adjusted by a factor
94
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base
mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the
mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0 for the first three years of service. Rates beyond
the select period of three years were adjusted, resulting in more expected termination overall.
Assumed percentage of married female was decreased from 65 percent to 60 percent.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two year older than females.
The assumed percentage of female member electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to
1.00 percent per year through 2064 and 2.50 percent thereafter.
The Single Discount Rate was changed from 5.60 percent per annum to 7.50 percent per annum.
2016 Changes
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2037 and 2.50 percent thereafter to 1.00 percent per year for all future years.
The assumed investment return was changed from 7.90 percent to 7.50 percent. The single
discount rate changed from 7.90 percent to 5.60 percent.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent
to 3.25 percent for payroll growth and 2.50 percent for inflation.
2015 Changes
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold
was changed, from inflation up to 2.50 percent, to a fixed rate of 2.50 percent.
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2037 and 2.50 percent per year
thereafter.
95
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2021
OPEB - Other Postemployment Benefits Plan
2021 Changes
Changes in Actuarial Assumptions
The discount rate was changed from 2.90% to 2.00%
Plan Changes
None. Note, though, one employee has a separation agreement which includes city paid family
medical coverage for four years, Since this agreement was signed after the January 1, 2021
measurement date, the increase in liability due to this plan change is not reflected in this
disclosure report, but will be reflected in the January 1, 2022 actuarial valuation.
2020 Changes
Changes in Actuarial Assumptions:
The health care trend rates were changed to better anticipate short term and long term
medical increases.
The mortality tables were updated from the RP-2014 Mortality Tables (Blue Collar for
Public Safety, White Collar for Others) with MP-2017 Generational Improvement Scale to the
Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with
MP-2019 Generational Improvement Scale.
The salary increase rates were changed from a flat 3.00% per year for all employees to
rates which vary by service and employee classification.
The discount rate was changed from 3.80% to 2.90%.
These changes increased the liability $29,358.
2019 Changes
Changes in Actuarial Assumptions:
•The discount rate was changed from 3.30% to 3.80%.
96
CITY OF HOPKINS, MINNESOTA
NONMAJOR GOVERNMENTAL FUNDS STATEMENTS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. Expenditures are restricted by law or administrative regulation for
specified purposes.
State Chemical Assessment Fund – This fund is entirely supported by state aid for the
purpose of chemical assessment training and activity for the State of Minnesota.
Hennepin County CDBG - This fund accounts for receipt for Community Development Block
Grant funds and the issuance of loans and grants for housing rehabilitation.
Parking Fund - This fund acquired land, improves and maintains parking lots and a parking
ramp and collects monthly maintenance fees from users.
Communications Fund - This fund records the City's share of a five-city joint venture cable TV
franchise administered under the Southwest Suburban Cable Commission.
Arts Center Fund - This fund accounts for the activities of the Hopkins Center for the Arts.
Sources of funds are derived from leases, ticket sales, admission fees, grants and donations.
Hopkins Race & Equity Initiative - This fund was established to account for the activity of a
collaborative effort of the City and two outside organizations centered on race equity.
Depot Coffee House Fund – This fund accounts for the operations of the coffee house
business and the teen center operations that are supported through grant funds.
American Rescue Plan Act Fund - This fund was established to record the receipt of
American Rescure Plan Act Fund procceds and the purchases in accordance with the
guidelines determined by the U.S. Department of Treasury.
Tax Increment Funds - These funds were established to record the use of tax increment
receipts and bond proceeds as applied in various Tax Increment Districts.
5th Avenue Flats Fund - This fund was established to account for the project costs of the 5th
Avenue Flats project. Originally shown as a tax increment fund the project changed scope and
is no longer in a tax increment district.
97
DEBT SERVICE FUNDS
Debt Service Funds are established to finance and account for the payment of interest
and principal on all general obligation debt other than debt issued for and serviced by a
governmental enterprise. Provisions are made in the City's general property tax levy for
money sufficient to meet the general obligation debt.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature. (Special revenue and enterprise fund
resources are not included in this category.) These funds evolve from the needs for
special accounting for bond proceeds, grants and contributions for the acquisition of
capital assets.
Park Improvements Fund - This fund was established to record construction and
improvement costs for park facilities.
Municipal State Aid Fund - This fund is used to account for the City's allocation of the
state collected highway user tax. This allocation is based on population and need for
construction of designated state aid streets in the City.
Capital Improvement Fund - This fund accounts for funds set aside for the
construction and improvement of City facilities and infrastructure.
Pavilion Addition Fund - This fund was established to record construction and
improvement costs for the Pavilion Addition Project.
98
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications Arts Center
Assets
Cash and cash equivalents $-$32 $31,233 $245,660 $-
Taxes receivable ----2,402
Accounts receivable ---53,101 14,058
Rehabilitation loans receivable -15,710 ---
Due from other governments 9,284 ----
Interest receivable --2 8 -
Prepaid items --1,667 6,888 -
Total Assets $9,284 $15,742 $32,902 $305,657 $16,460
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $490 $-$519 $18,903 $36,121
Salaries payable 1,004 -4,815 5,625 16,615
Due to other funds 33,845 ---702,981
Due to other governments --1,061 -103
Unearned revenue --35,207 -17,851
Total Liabilities:35,339 -41,602 24,528 773,671
Fund balances:
Nonspendable --1,667 6,888 -
Restricted -15,742 -135,502 -
Committed ---138,739 -
Unassigned (26,055)-(10,367)-(757,211)
Total Fund Balances (26,055)15,742 (8,700)281,129 (757,211)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $9,284 $15,742 $32,902 $305,657 $16,460
99
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Special Revenue Funds
Hopkins Race &
Equity Initiative
Depot
Coffee
House
American
Rescue Plan Act
Tax
Increment
District
Entertainment
District
Tax
Increment
District
Oaks of
Mainstreet
Assets
Cash and cash equivalents $4,832 $-$1,009,112 $301,987 $14,511
Taxes receivable -----
Accounts receivable -45,617 ---
Rehabilitation loans receivable -----
Due from other governments -----
Interest receivable ---11 2
Prepaid items -----
Total Assets $4,832 $45,617 $1,009,112 $301,998 $14,513
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $3 $5,838 $-$270 $12
Salaries payable -6,831 ---
Due to other funds -167,475 -75,271 -
Due to other governments -387 ---
Unearned revenue --1,009,112 --
Total Liabilities:3 180,531 1,009,112 75,541 12
Fund balances:
Nonspendable -----
Restricted 4,829 --226,457 14,501
Committed -----
Unassigned -(134,914)---
Total Fund Balances 4,829 (134,914)-226,457 14,501
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $4,832 $45,617 $1,009,112 $301,998 $14,513
100
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Special Revenue Funds
5th Ave Flats
Tax Increment
District Moline
Tax
Increment
District
Marketplace
& Main Total
Assets
Cash and cash equivalents $-$739,331 $140,408 $2,487,106
Taxes receivable ---2,402
Accounts receivable ---112,776
Rehabilitation loans receivable ---15,710
Due from other governments ---9,284
Interest receivable --5 28
Prepaid items ---8,555
Total Assets $-$739,331 $140,413 $2,635,861
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $-$446,977 $105,923 $615,056
Salaries payable ---34,890
Due to other funds 399,379 -210,000 1,588,951
Due to other governments ---1,551
Unearned revenue ---1,062,170
Total Liabilities:399,379 446,977 315,923 3,302,618
Fund balances:
Nonspendable ---8,555
Restricted -292,354 -689,385
Committed ---138,739
Unassigned (399,379)-(175,510)(1,503,436)
Total Fund Balances (399,379)292,354 (175,510)(666,757)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $-$739,331 $140,413 $2,635,861
101
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Debt Service Funds
Taxable Tax
Increment
Bonds of 1997
Refunding
Bonds of 2005B
Housing
Improvement
Bonds of 1999A
Refunding
Bonds of 2009B
Housing
Improvement
Bonds of 1999B
Refunding
Bonds of 2009B
Improvement
Revolving
Bonds of
2010A
Tax
Increment
Bonds of 2002
Refunding
Bonds of
2010B
Assets
Cash and cash equivalents $-$21,376 $-$-$290,575
Taxes receivable -----
Special assessments receivable 5,239 1,904 5,917 --
Interest receivable -1 --16
Total Assets $5,239 $23,281 $5,917 $-$290,591
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $-$17 $1 $-$225
Due to other funds 6 -36 --
Total Liabilities 6 17 37 -225
Deferred inflows of resources:
Taxes and special assessments 5,239 1,808 5,917 --
Total Deferred Inflows of Resources 5,239 1,808 5,917 --
Fund balances:
Restricted -21,456 --290,366
Unassigned (6)-(37)--
Total Fund Balances (6)21,456 (37)-290,366
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $5,239 $23,281 $5,917 $-$290,591
102
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Debt Service Funds
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Improvement
Bonds of 2014A
Assets
Cash and cash equivalents $367,101 $-$-$-$172,494
Taxes receivable 1,640 ---707
Special assessments receivable ----45,057
Interest receivable 5 ---5
Total Assets $368,746 $-$-$-$218,263
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $288 $-$-$-$113
Due to other funds -----
Total Liabilities 288 ---113
Deferred inflows of resources:
Taxes and special assessments ----45,057
Total Deferred Inflows of Resources ----45,057
Fund balances:
Restricted 368,458 ---173,093
Unassigned -----
Total Fund Balances 368,458 ---173,093
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $368,746 $-$-$-$218,263
103
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Debt Service Funds
Refunding
Bonds of 2014B
SROP Bonds of
2015A
Tax Abatement
Bonds of 2015B
Tax Increment
Revenue Bonds
of 2015C
Tax Increment
Revenue Bonds
of 2015D
Assets
Cash and cash equivalents $ 563,035 $ 319,066 $ 76,013 $ 479,742 $ 127,048
Taxes receivable 4,885 1,824 839 --
Special assessments receivable -27,992 ---
Interest receivable 16 9 2 27 21
Total Assets $567,936 $348,891 $76,854 $479,769 $127,069
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $375 $218 $31 $372 $88
Due to other funds -----
Total Liabilities 375 218 31 372 88
Deferred inflows of resources:
Taxes and special assessments -27,628 ---
Total Deferred Inflows of Resources -27,628 ---
Fund balances:
Restricted 567,561 321,045 76,823 479,397 126,981
Unassigned -----
Total Fund Balances 567,561 321,045 76,823 479,397 126,981
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $567,936 $348,891 $76,854 $479,769 $127,069
104
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Debt Service Funds
Improvement
Bonds of 2016A
Tax Abatement
Bonds of 2016B
G O Bonds of
2016C
Tax Increment
Revenue Bonds
of 2016D
SROP Bonds of
2017A
Assets
Cash and cash equivalents $617,255 $128,295 $258,595 $-$867,605
Taxes receivable 729 243 1,766 -7,101
Special assessments receivable 400,316 ---446,286
Interest receivable 17 3 10 10 21
Total Assets $1,018,317 $128,541 $260,371 $10 $1,321,013
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $400 $60 $232 $-$460
Due to other funds ---14,967 -
Total Liabilities 400 60 232 14,967 460
Deferred inflows of resources:
Taxes and special assessments 399,958 ---446,160
Total Deferred Inflows of Resources 399,958 ---446,160
Fund balances:
Restricted 617,959 128,481 260,139 -874,393
Unassigned ---(14,957)-
Total Fund Balances 617,959 128,481 260,139 (14,957)874,393
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $1,018,317 $128,541 $260,371 $10 $1,321,013
105
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Debt Service Funds
G O Bonds of
2017B
G O Bonds of
2018A
G O Bonds of
2019A
Refunding
Bonds of 2019B
Equipment
Certificates of
2020A
Assets
Cash and cash equivalents $ 317,143 $ 809,440 $ 646,103 $ 8,784 $-
Taxes receivable 61 3,928 3,056 692 -
Special assessments receivable -475,463 667,095 156,402 -
Interest receivable 11 29 1 --
Total Assets $317,215 $1,288,860 $1,316,255 $165,878 $-
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $273 $685 $- $- $-
Due to other funds ----5,180
Total Liabilities 273 685 --5,180
Deferred inflows of resources:
Taxes and special assessments -474,036 667,133 156,137 -
Total Deferred Inflows of Resources -474,036 667,133 156,137 -
Fund balances:
Restricted 316,942 814,139 649,122 9,741 -
Unassigned ----(5,180)
Total Fund Balances 316,942 814,139 649,122 9,741 (5,180)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $317,215 $1,288,860 $1,316,255 $165,878 $-
106
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Debt Service
Funds
G O Bonds of
2021A Total
Assets
Cash and cash equivalents $108,891 $6,178,561
Taxes receivable -27,471
Special assessments receivable -2,231,671
Interest receivable -204
Total Assets $108,891 $8,437,907
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $1 $3,839
Due to other funds -20,189
Total Liabilities 1 24,028
Deferred inflows of resources:
Taxes and special assessments -2,229,073
Total Deferred Inflows of Resources -2,229,073
Fund balances:
Restricted 108,890 6,204,986
Unassigned -(20,180)
Total Fund Balances 108,890 6,184,806
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $108,891 $8,437,907
107
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Capital Project Funds
Park
Improvements
Capital
Improvement
Municipal State
Aid
Construction
Fund
Pavilion
Addition Total
Assets
Cash and cash equivalents $398,629 $62,955 $1,010,620 $-$1,472,204
Taxes receivable -16 --16
Accounts receivable 74,480 89,434 --163,914
Interest receivable --51 -51
Total Assets $473,109 $152,405 $1,010,671 $-$1,636,185
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable $-$-$1,242 $-$1,242
Total Liabilities --1,242 -1,242
Fund balances:
Restricted 284,000 -1,009,429 -1,293,429
Assigned 189,109 152,405 --341,514
Total Fund Balances 473,109 152,405 1,009,429 -1,634,943
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $473,109 $152,405 $1,010,671 $-$1,636,185
108
City of Hopkins
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2021
Special Revenue Debt Service Capital Projects
Total
Non-major
Governmental
Funds
Assets
Cash and cash equivalents $2,487,106 $6,178,561 $1,472,204 $10,137,871
Taxes receivable 2,402 27,471 16 29,889
Special assessments receivable -2,231,671 -2,231,671
Accounts receivable 112,776 -163,914 276,690
Rehabilitation loans receivable 15,710 --15,710
Due from other governments 9,284 --9,284
Interest receivable 28 204 51 283
Prepaid items 8,555 --8,555
Total Assets $2,635,861 $8,437,907 $1,636,185 $12,709,953
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable $615,056 $3,839 $1,242 $620,137
Salaries payable 34,890 --34,890
Due to other funds 1,588,951 20,189 -1,609,140
Due to other governments 1,551 --1,551
Unearned revenue 1,062,170 --1,062,170
Total Liabilities 3,302,618 24,028 1,242 3,327,888
Deferred inflows of resources:
Taxes and special assessments -2,229,073 -2,229,073
Total Deferred Inflows of Resources -2,229,073 -2,229,073
Fund balances:
Nonspendable 8,555 --8,555
Restricted 689,385 6,204,986 1,293,429 8,187,800
Committed 138,739 --138,739
Assigned --341,514 341,514
Unassigned (1,503,436)(20,180)-(1,523,616)
Total Fund Balances (666,757)6,184,806 1,634,943 7,152,992
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $2,635,861 $8,437,907 $1,636,185 $12,709,953
109
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Special Revenue Funds
State
Chemical
Assessment
Hennepin
County
CDBG Parking Communications Arts Center
Revenues
Property taxes $- $- $- $- $ 331,694
Franchise Fees ---216,584 -
Tax increments -----
Intergovernmental 74,236 ---46,808
Charges for services --80,634 79 388,352
Fines --12,507 --
Investment earnings ---46 15
Other miscellaneous revenues ----95,755
Total Revenues 74,236 -93,141 216,709 862,624
Expenditures
Current:
General government ---216,200 -
Public safety 73,135 -81,943 --
Highways and streets --80,001 --
Urban redevelopment and housing -6,439 ---
Culture and recreation ----679,815
Debt service:
Interest and fiscal fees -----
Total Expenditures 73,135 6,439 161,944 216,200 679,815
Excess (deficiency) of revenues
over expenditures 1,101 (6,439)(68,803)509 182,809
Other Financing Sources (Uses)
Transfer in ----80,000
Transfer out ---(50,000)-
Total Other Financing Sources (Uses)---(50,000)80,000
Net change in fund balances 1,101 (6,439)(68,803)(49,491)262,809
Fund balance (deficit) - January 1 (27,156)22,181 60,103 330,620 (1,020,020)
Fund balance (deficit) - December 31 $(26,055)$15,742 $(8,700)$281,129 $(757,211)
110
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Special Revenue Funds
Hopkins Race &
Equity Initiative
Depot
Coffee
House
American
Rescue Plan Act
Tax
Increment
District
Entertainment
District
Tax Increment
District Oaks of
Mainstreet
Revenues
Property taxes $-$-$-$-$-
Franchise Fees -----
Tax increments ---61,436 -
Intergovernmental -19,500 ---
Charges for services -55,140 ---
Fines -----
Investment earnings 6 --83 -
Other miscellaneous revenues 4,000 88,849 ---
Total Revenues 4,006 163,489 -61,519 -
Expenditures
Current:
General government -----
Public safety -----
Highways and streets -----
Urban redevelopment and housing ---513 9,142
Culture and recreation 1,633 227,723 ---
Debt service:
Interest and fiscal fees ---5,046 -
Total Expenditures 1,633 227,723 -5,559 9,142
Excess (deficiency) of revenues
over expenditures 2,373 (64,234)-55,960 (9,142)
Other Financing Sources (Uses)
Transfer in -20,000 ---
Transfer out -----
Total Other Financing Sources (Uses)-20,000 ---
Net change in fund balances 2,373 (44,234)-55,960 (9,142)
Fund balance (deficit) - January 1 2,456 (90,680)-170,497 23,643
Fund balance (deficit) - December 31 $4,829 $(134,914)$-$226,457 $14,501
111
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Special Revenue Funds
5th Ave Flats
Tax Increment
District Moline
Tax Increment
District
Marketplace &
Main Total
Revenues
Property taxes $- $- $- $ 331,694
Franchise Fees ---216,584
Tax increments - 1,010,181 224,903 1,296,520
Intergovernmental ---140,544
Charges for services ---524,205
Fines ---12,507
Investment earnings 2 -39 191
Other miscellaneous revenues ---188,604
Total Revenues 2 1,010,181 224,942 2,710,849
Expenditures
Current:
General government ---216,200
Public safety ---155,078
Highways and streets ---80,001
Urban redevelopment and housing 53 921,334 214,113 1,151,594
Culture and recreation ---909,171
Debt service:
Interest and fiscal fees ---5,046
Total Expenditures 53 921,334 214,113 2,517,090
Excess (deficiency) of revenues
over expenditures (51)88,847 10,829 193,759
Other Financing Sources (Uses)
Transfer in ---100,000
Transfer out ---(50,000)
Total Other Financing Sources (Uses)---50,000
Net change in fund balances (51)88,847 10,829 243,759
Fund balance (deficit) - January 1 (399,328)203,507 (186,339) (910,516)
Fund balance (deficit) - December 31 $(399,379)$292,354 $(175,510)$(666,757)
112
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Debt Service Funds
Taxable Tax
Increment
Bonds of 1997
Refunding
Bonds of 2005B
Housing
Improvement
Bonds of 1999A
Refunding
Bonds of 2009B
Housing
Improvement
Bonds of 1999B
Refunding
Bonds of 2009B
Improvement
Revolving
Bonds of
2010A
Tax
Increment
Bonds of 2002
Refunding
Bonds of
2010B
Revenues
Property taxes $-$-$-$-$-
Special assessments -3,937 ---
Investment earnings ----16
Total Revenues -3,937 --16
Expenditures
Current:
General government -17 --584
Debt Service:
Principal retirement ----170,000
Interest and fiscal fees 126 91 192 -12,756
Total Expenditures 126 108 192 -183,340
Excess (deficiency) of revenues
over expenditures (126)3,829 (192)-(183,324)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ----188,000
Transfer out ---(10)-
Total Other Financing Sources (Uses)---(10)188,000
Net change in fund balances (126)3,829 (192)(10)4,676
Fund balance (deficit) - January 1 120 17,627 155 10 285,690
Fund balance (deficit) - December 31 $(6)$21,456 $(37)$-$290,366
113
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Debt Service Funds
Capital
Improvement
Bonds of 2012A
Equipment
Certificates of
2012B
Improvement
Bonds of 2012B
Improvement
Bonds of 2013A
Improvement
Bonds of 2014A
Revenues
Property taxes $225,372 $-$-$-$97,160
Special assessments ----9,022
Investment earnings 41 ---1
Total Revenues 225,413 ---106,183
Expenditures
Current:
General government 647 ---473
Debt Service:
Principal retirement 180,000 ---120,000
Interest and fiscal fees 8,163 ---38,686
Total Expenditures 188,810 ---159,159
Excess (deficiency) of revenues
over expenditures 36,603 ---(52,976)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in ----49,934
Transfer out -(66,922)(428,758)(1,302,148)-
Total Other Financing Sources (Uses)-(66,922)(428,758)(1,302,148)49,934
Net change in fund balances 36,603 (66,922)(428,758)(1,302,148)(3,042)
Fund balance (deficit) - January 1 331,855 66,922 428,758 1,302,148 176,135
Fund balance (deficit) - December 31 $368,458 $-$-$-$173,093
114
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Debt Service Funds
Refunding
Bonds of 2014B
SROP Bonds of
2015A
Tax Abatement
Bonds of 2015B
Tax Increment
Revenue Bonds
of 2015C
Tax Increment
Revenue Bonds
of 2015D
Revenues
Property taxes $ 671,122 $ 250,430 $ 115,200 $- $-
Special assessments -9,287 ---
Investment earnings -1 -1 1
Total Revenues 671,122 259,718 115,200 1 1
Expenditures
Current:
General government 2,735 578 391 732 448
Debt Service:
Principal retirement 730,000 255,000 130,000 270,000 415,000
Interest and fiscal fees 38,850 72,109 64,750 75,134 131,738
Total Expenditures 771,585 327,687 195,141 345,866 547,186
Excess (deficiency) of revenues
over expenditures (100,463)(67,969)(79,941)(345,865)(547,185)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in 145,000 68,412 63,750 340,000 529,300
Transfer out -----
Total Other Financing Sources (Uses)145,000 68,412 63,750 340,000 529,300
Net change in fund balances 44,537 443 (16,191)(5,865)(17,885)
Fund balance (deficit) - January 1 523,024 320,602 93,014 485,262 144,866
Fund balance (deficit) - December 31 $567,561 $321,045 $76,823 $479,397 $126,981
115
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Debt Service Funds
Improvement
Bonds of 2016A
Tax Abatement
Bonds of 2016B
G O Bonds of
2016C
Tax Increment
Revenue Bonds
of 2016D
SROP Bonds of
2017A
Revenues
Property taxes $100,164 $33,372 $242,833 $-$977,321
Special assessments 85,218 ---90,064
Investment earnings 797 149 129 -38
Total Revenues 186,179 33,521 242,962 -1,067,423
Expenditures
Current:
General government 3,010 3,419 1,591 4,360 820
Debt Service:
Principal retirement 265,000 100,000 205,000 260,000 650,000
Interest and fiscal fees 72,526 26,666 24,089 74,311 381,075
Total Expenditures 340,536 130,085 230,680 338,671 1,031,895
Excess (deficiency) of revenues
over expenditures (154,357)(96,564)12,282 (338,671)35,528
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in 154,666 100,000 -326,000 -
Transfer out -----
Total Other Financing Sources (Uses)154,666 100,000 -326,000 -
Net change in fund balances 309 3,436 12,282 (12,671)35,528
Fund balance (deficit) - January 1 617,650 125,045 247,857 (2,286)838,865
Fund balance (deficit) - December 31 $617,959 $128,481 $260,139 $(14,957)$874,393
116
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Debt Service Funds
G O Bonds of
2017B
G O Bonds of
2018A
G O Bonds of
2019A
Refunding
Bonds of 2019B
Equipment
Certificates of
2020A
Revenues
Property taxes $ 4,303 $ 543,990 $ 426,599 $ 95,151 $-
Special assessments -88,526 84,528 40,999 -
Investment earnings 135 -11,901 1 -
Total Revenues 4,438 632,516 523,028 136,151 -
Expenditures
Current:
General government 633 1,045 5,947 360 360
Debt Service:
Principal retirement 95,000 395,000 570,000 200,000 -
Interest and fiscal fees 56,439 195,393 462,382 47,744 10,884
Total Expenditures 152,072 591,438 1,038,329 248,104 11,244
Excess (deficiency) of revenues
over expenditures (147,634)41,078 (515,301)(111,953)(11,244)
Other Financing Sources (Uses)
Improvement bonds issued -----
Premium on improvement bonds -----
Transfer in -- 720,000 80,804 -
Transfer out -----
Total Other Financing Sources (Uses)--720,000 80,804 -
Net change in fund balances (147,634)41,078 204,699 (31,149)(11,244)
Fund balance (deficit) - January 1 464,576 773,061 444,423 40,890 6,064
Fund balance (deficit) - December 31 $316,942 $814,139 $649,122 $9,741 $(5,180)
117
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Debt Service
Funds
G O Bonds of
2021A Total
Revenues
Property taxes $- $ 3,783,017
Special assessments - 411,581
Investment earnings 2,218 15,429
Total Revenues 2,218 4,210,027
Expenditures
Current:
General government 68,041 96,191
Debt Service:
Principal retirement - 5,010,000
Interest and fiscal fees - 1,794,104
Total Expenditures 68,041 6,900,295
Excess (deficiency) of revenues
over expenditures (65,823)(2,690,268)
Other Financing Sources (Uses)
Improvement bonds issued 3,720,000 3,720,000
Premium on improvement bonds 136,611 136,611
Transfer in - 2,765,866
Transfer out (3,681,898) (5,479,736)
Total Other Financing Sources (Uses)174,713 1,142,741
Net change in fund balances 108,890 (1,547,527)
Fund balance (deficit) - January 1 - 7,732,333
Fund balance (deficit) - December 31 $108,890 $6,184,806
118
City of Hopkins
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Capital Projects Funds
Park
Improvements
Capital
Improvement
Municipal State
Aid
Construction
Fund
Pavilion
Addition Total
Revenues
Property taxes $- $147 $- $- $147
Franchise Fees 299,804 360,630 --660,434
Investment earnings --733 -733
Other miscellaneous revenues 281,000 -15,500 -296,500
Total Revenues 580,804 360,777 16,233 -957,814
Expenditures
Current:
General government -34,448 --34,448
Highways and streets 11,371 -3,991 -15,362
Interest and fiscal fees 1,391 ---1,391
Capital outlay 28,290 16,452 --44,742
Total Expenditures 41,052 50,900 3,991 -95,943
Excess (deficiency) of revenues
over expenditures 539,752 309,877 12,242 -861,871
Other Financing Sources (Uses)
Transfer in ---123,616 123,616
Transfer out (110,000) (720,000)-- (830,000)
Total Other Financing Sources (Uses)(110,000)(720,000)-123,616 (706,384)
Net change in fund balances 429,752 (410,123)12,242 123,616 155,487
Fund balance (deficit) - January 1 43,357 562,528 997,187 (123,616) 1,479,456
Fund balance (deficit) - December 31 $473,109 $152,405 $1,009,429 $-$1,634,943
119
City of Hopkins
Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
Special Revenue Debt Service Capital Projects
Total Nonmajor
Governmental
Funds
Revenues
Property taxes $ 331,694 $ 3,783,017 $147 $ 4,114,858
Franchise Fees 216,584 -660,434 877,018
Tax increments 1,296,520 -- 1,296,520
Special assessments -411,581 -411,581
Intergovernmental 140,544 --140,544
Charges for services 524,205 --524,205
Fines 12,507 --12,507
Investment earnings 191 15,429 733 16,353
Other miscellaneous revenues 188,604 -296,500 485,104
Total Revenues 2,710,849 4,210,027 957,814 7,878,690
Expenditures
Current:
General government 216,200 96,191 34,448 346,839
Public safety 155,078 --155,078
Highways and streets 80,001 -15,362 95,363
Urban redevelopment and housing 1,151,594 -- 1,151,594
Culture and recreation 909,171 --909,171
Debt service:
Principal retirement - 5,010,000 - 5,010,000
Interest and fiscal fees 5,046 1,794,104 1,391 1,800,541
Capital outlay --44,742 44,742
Total Expenditures 2,517,090 6,900,295 95,943 9,513,328
Excess (deficiency) of revenues
over expenditures 193,759 (2,690,268)861,871 (1,634,638)
Other Financing Sources (Uses)
Improvement bonds issued - 3,720,000 - 3,720,000
Premium on improvement bonds -136,611 -136,611
Transfer in 100,000 2,765,866 123,616 2,989,482
Transfer out (50,000) (5,479,736) (830,000) (6,359,736)
Total Other Financing Sources (Uses)50,000 1,142,741 (706,384)486,357
Net change in fund balances 243,759 (1,547,527)155,487 (1,148,281)
Fund balance (deficit) - January 31 (910,516) 7,732,333 1,479,456 8,301,273
Fund balance (deficit) - December 31 $(666,757)$6,184,806 $1,634,943 $7,152,992
120
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
State Chemical Assessment
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 65,000 $ 65,000 $ 74,236 $ 9,236
Total Revenues 65,000 65,000 74,236 9,236
Expenditures
Current:
Public safety 65,000 65,000 73,135 (8,135)
Excess (deficiency) of revenues over expenditures --1,101 1,101
Net change in fund balance $-$-1,101 $1,101
Fund balance (deficit) - January 1 (27,156)
Fund balance (deficit) - December 31 $ (26,055)
121
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Parking
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Charges for services $ 100,000 $ 100,000 $ 80,634 $ (19,366)
Fines 20,000 20,000 12,507 (7,493)
Investment earnings 1,500 1,500 -(1,500)
Total Revenues 121,500 121,500 93,141 (28,359)
Expenditures
Current:
Public safety 85,059 85,059 81,943 3,116
Highways and streets 69,816 69,816 80,001 (10,185)
Total Expenditures 154,875 154,875 161,944 (7,069)
Excess (deficiency) of revenues over expenditures (33,375)(33,375)(68,803)(35,428)
Net change in fund balance $(33,375)$(33,375)(68,803)$(35,428)
Fund balance (deficit) - January 1 60,103
Fund balance (deficit) - December 31 $ (8,700)
122
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Communications
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Franchise Fees $ 240,000 $ 240,000 $ 216,584 $ (23,416)
Charges for services --79 79
Investment earnings 3,000 3,000 46 (2,954)
Total Revenues 243,000 243,000 216,709 (26,291)
Expenditures
Current:
General government 197,724 197,724 216,200 (18,476)
Capital Outlay 3,500 3,500 -3,500
Total Expenditures 201,224 201,224 216,200 (14,976)
Excess (deficiency) of revenues over expenditures 41,776 41,776 509 (41,267)
Other Financing Sources (Uses)
Transfer out (50,000)(50,000)(50,000)-
Total Other Financing Sources (Uses)(50,000)(50,000)(50,000)-
Net change in fund balance $(8,224)$(8,224)(49,491)$(41,267)
Fund balance (deficit) - January 1 330,620
Fund balance (deficit) - December 31 $ 281,129
123
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Arts Center
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Property taxes $331,182 $331,182 $331,694 $512
Intergovernmental 35,000 35,000 46,808 11,808
Charges for services 404,777 404,777 388,352 (16,425)
Investment earnings --15 15
Other miscellaneous revenues 233,200 233,200 95,755 (137,445)
Total Revenues 1,004,159 1,004,159 862,624 (141,535)
Expenditures
Culture and recreation 968,160 968,160 679,815 288,345
Capital Outlay 56,000 56,000 -56,000
Total Expenditures 1,024,160 1,024,160 679,815 344,345
Excess (deficiency) of revenues over expenditures (20,001)(20,001)182,809 202,810
Other Financing Sources (Uses)
Transfer in 80,000 80,000 80,000 -
Total Other Financing Sources (Uses)80,000 80,000 80,000 -
Net change in fund balance $59,999 $59,999 262,809 $202,810
Fund balance (deficit) - January 1 (1,020,020)
Fund balance (deficit) - December 31 $(757,211)
124
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Hopkins Race & Equity Initiative
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $6 $6
Other miscellaneous revenues 6,000 6,000 4,000 (2,000)
Total Revenues 6,000 6,000 4,006 (1,994)
Expenditures
Culture and recreation 6,000 6,000 1,633 4,367
Excess (deficiency) of revenues over expenditures --2,373 2,373
Net change in fund balance $-$-2,373 $2,373
Fund balance (deficit) - January 1 2,456
Fund balance (deficit) - December 31 $ 4,829
125
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Depot Coffee House
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Intergovernmental $ 19,500 $ 19,500 $ 19,500 $-
Charges for services 54,500 54,500 55,140 640
Other miscellaneous revenues 139,000 139,000 88,849 (50,151)
Total Revenues 213,000 213,000 163,489 (49,511)
Expenditures
Current:
Culture and recreation 247,266 247,266 227,723 19,543
Excess (deficiency) of revenues over expenditures (34,266)(34,266)(64,234)(29,968)
Other Financing Sources (Uses)
Transfer in 20,000 20,000 20,000 -
Total Other Financing Sources (Uses)20,000 20,000 20,000 -
Net change in fund balance $(14,266)$(14,266)(44,234)$(29,968)
Fund balance (deficit) - January 1 (90,680)
Fund balance (deficit) - December 31 $ (134,914)
126
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Entertainment District
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $30,000 $30,000 $61,436 $31,436
Investment earnings --83 83
Total Revenues 30,000 30,000 61,519 31,519
Expenditures
Current:
Urban redevelopment and housing 3,000 3,000 513 2,487
Debt Service:
Interest and fiscal fees 12,000 12,000 5,046 6,954
Total Expenditures 15,000 15,000 5,559 9,441
Excess (deficiency) of revenues over expenditures 15,000 15,000 55,960 40,960
Net change in fund balance $15,000 $15,000 55,960 $40,960
Fund balance (deficit) - January 1 170,497
Fund balance (deficit) - December 31 $226,457
127
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Oaks of Mainstreet
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $ 1,500 $ 1,500 $- $ (1,500)
Total Revenues 1,500 1,500 -(1,500)
Expenditures
Current:
Urban redevelopment and housing 5,000 5,000 9,142 (4,142)
Excess (deficiency) of revenues over expenditures (3,500)(3,500)(9,142)(5,642)
Net change in fund balance $(3,500)$(3,500)(9,142)$(5,642)
Fund balance (deficit) - January 1 23,643
Fund balance (deficit) - December 31 $ 14,501
128
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
5th Ave Flats
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Investment earnings $- $- $2 $2
Total Revenues --2 2
Expenditures
Urban redevelopment and housing 2,000 2,000 53 1,947
Excess (deficiency) of revenues over expenditures (2,000)(2,000)(51)1,949
Net change in fund balance $(2,000)$(2,000)(51)$1,949
Fund balance (deficit) - January 1 (399,328)
Fund balance (deficit) - December 31 $ (399,379)
129
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Moline
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 975,000 $ 975,000 $ 1,010,181 $ 35,181
Total Revenues 975,000 975,000 1,010,181 35,181
Expenditures
Urban redevelopment and housing 925,000 925,000 921,334 3,666
Excess (deficiency) of revenues over expenditures 50,000 50,000 88,847 38,847
Net change in fund balance $50,000 $50,000 88,847 $38,847
Fund balance (deficit) - January 1 203,507
Fund balance (deficit) - December 31 $ 292,354
130
City of Hopkins
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
Tax Increment District Marketplace & Main
For the Year Ended December 31, 2021
Original
Budget
Final
Approved
Budget Actual
Variance with
Final Budget
Over/Under
Revenues
Tax increments $ 194,500 $ 194,500 $ 224,903 $ 30,403
Investment earnings 500 500 39 (461)
Total Revenues 195,000 195,000 224,942 29,942
Expenditures
Current:
Urban redevelopment and housing 185,000 185,000 214,113 (29,113)
Excess (deficiency) of revenues over expenditures 10,000 10,000 10,829 829
Net change in fund balance $10,000 $10,000 10,829 $829
Fund balance (deficit) - January 1 (186,339)
Fund balance (deficit) - December 31 $ (175,510)
131
City of Hopkins
132
CITY OF HOPKINS, MINNESOTA
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units, which render services to the general public on a user
charge basis. Records are maintained on the accrual basis of accounting.
The Authority for these types of funds is derived from Section 11.01 of the City Charter,
which allows for utility or other public service enterprise funds.
The City has six Enterprise Funds, two of which are considered to be nonmajor, they
are:
Refuse Utility Fund – This fund accounts for the operations of the city owned refuse
service.
Housing Authority Fund – This fund accounts for the operations of the city owned
federally subsidized apartment building.
133
City of Hopkins
Combining Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2021
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility
Housing
Authority Total
Assets
Current assets:
Cash and investments $ 1,296,196 $ 287,769 $ 1,583,965
Accounts receivable 40,264 808 41,072
Accrued interest receivable 44 -44
Prepaid expenses 827 12,646 13,473
Due from other governments - 346,528 346,528
Total current assets 1,337,331 647,751 1,985,082
Noncurrent assets:
Capital assets, nondepreciable:
Land - 208,252 208,252
Capital assets, depreciable:
Building and structures 309,227 5,793,995 6,103,222
Machinery and equipment 1,061,439 52,719 1,114,158
Less accumulated depreciation (741,730) (4,382,789) (5,124,519)
Total noncurrent assets 628,936 1,672,177 2,301,113
Total Assets 1,966,267 2,319,928 4,286,195
Deferred outflows of resources:
Pensions 57,714 -57,714
OPEB 9,267 4,164 13,431
Total Deferred Outflows of Resources 66,981 4,164 71,145
Liabilities
Current liabilities:
Accounts payable 27,030 30,717 57,747
Salaries payable 15,625 33,221 48,846
Due to other funds - 200,000 200,000
Due to other governments 28,085 -28,085
Compensated absences 8,209 13,930 22,139
Total current liabilities 78,949 277,868 356,817
Noncurrent liabilities:
Total OPEB liability due within one year 9,267 4,164 13,431
Total OPEB liability due in more than one year 28,037 12,598 40,635
Net pension liability due in more than one year 262,258 - 262,258
Total noncurrent liabilities 299,562 16,762 316,324
Total Liabilities 378,511 294,630 673,141
Deferred inflows of resources:
Pensions 71,886 -71,886
OPEB 603 271 874
Total Deferred Inflows of Resources 72,489 271 72,760
Net Position
Net investment in capital assets 628,936 1,672,177 2,301,113
Unrestricted 953,312 357,014 1,310,326
Total Net Position $1,582,248 $2,029,191 $3,611,439
134
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Activities
For the Year Ended December 31, 2021
Nonmajor Business-type Activities-Enterprise Funds
Refuse
Utility
Housing
Authority
Nonmajor
Enterprise Funds
Total
Operating revenues
Charges for services $968,672 $258,241 $1,226,913
Other 6,435 5,657 12,092
Total operating revenues 975,107 263,898 1,239,005
Operating expenses
Cost of sales and services 942,804 87,117 1,029,921
Administration 122,568 325,427 447,995
Depreciation 45,697 194,099 239,796
Total operating expenses 1,111,069 606,643 1,717,712
Operating income (loss)(135,962)(342,745)(478,707)
Nonoperating revenues (expenses)
Miscellaneous revenue 2,052 -2,052
Investment earnings 623 1,572 2,195
Intergovernmental grants 15,394 200,554 215,948
Total nonoperating revenues (expenses)18,069 202,126 220,195
Income (loss) before contributions and transfers (117,893)(140,619)(258,512)
Capital contributions
Transfers (25,000)-(25,000)
Change in net position (142,893)(140,619)(283,512)
Net position - January 1 1,725,141 2,169,810 3,894,951
Net position - December 31 $1,582,248 $2,029,191 $3,611,439
135
City of Hopkins
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2021
Nonmajor Business-type
Activities-Enterprise Funds
Nonmajor
Refuse Housing
Enterprise
Funds
Utility Authority Total
Cash Flows from Operating Activities
Receipts from customers and users $ 978,620 $ 327,276 $ 1,305,896
Internal Activity Payments from other governments 101 - 101
Payments to suppliers (489,677) (309,808) (799,485)
Payments to employees (422,315) (135,203) (557,518)
Payments for interfund services used (122,568)- (122,568)
Miscellaneous Income 2,052 - 2,052
Net cash used by operating activities (53,787)(117,735)(171,522)
Cash Flows from Noncapital Financing Activities
Intergovernmental grants 15,394 200,554 215,948
Transfers in (out)(25,000)- (25,000)
Interest and Dividends received 579 1,572 2,151
Net cash provided (used) by noncapital and related financing activities (9,027) 202,126 193,099
Cash Flows from Capital and Related Financing Activities:
Construction of capital assets (138,289) (133,202) (271,491)
Net cash provided (used) by capital and related financing activities (138,289)(133,202)(271,491)
Net increase (decrease) in cash and cash equivalents (201,103) (48,811) (249,914)
Cash and cash equivalents - January 1 1,497,299 336,580 1,833,879
Cash and cash equivalents - December 31 $ 1,296,196 $ 287,769 $ 1,583,965
Reconciliation of operating loss to net cash used by operating activities:
Operating income (loss)(135,962) (342,745) (478,707)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Depreciation expense 45,697 194,099 239,796
Miscellaneous Income 2,052 2,052
(Increase) decrease in:
Accounts receivable 3,614 63,378 66,992
Prepaid expense (827)4,659 3,832
Pensions (deferred outflows)(41,581)- (41,581)
OPEB (deferred outflows)(4,202) (1,354) (5,556)
Increase (decrease) in:
Accounts, compensated absences and accrued interest payable (50,773) (31,941) (82,714)
Due to other governments 7,945 - 7,945
Net pension liability 40,218 - 40,218
Total OPEB liability 21,304 (3,921) 17,383
Pension (deferred inflows) 58,502 - 58,502
OPEB (deferred inflows) 226 90 316
Net cash used by operating activities $ (53,787) $ (117,735) $ (171,522)
136
CITY OF HOPKINS, MINNESOTA
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services
provided by one department to other departments of the government, on a cost
reimbursement basis. Revenues and expenses are recognized on the accrual basis.
Revenues are recognized in the accounting period in which they are earned and
become objectively measurable; expenses are recognized in the period incurred, if
objectively measurable.
Equipment Replacement Fund – This fund accounts for the acquisition of machinery
and equipment. User charges are billed to the various City departments.
Insurance Risk Fund – This fund accounts for the dividends and deductibles relating
to property and casualty insurance coverage. Deductibles are paid from past dividends.
Users are charged only if the fund has a shortfall.
Employee Benefits Fund – This fund accounts for accrued employee benefits within
the governmental funds. User charges are billed to the various departments.
137
City of Hopkins
Combining Statement of Net Position
Internal Service Funds
December 31, 2021
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Assets
Current assets:
Cash and investments $ 929,445 $ 1,167,029 $ 294,943 $ 2,391,417
Taxes receivable 1,443 --1,443
Accounts receivable 17,480 --17,480
Accrued interest receivable -48 8 56
Total current assets 948,368 1,167,077 294,951 2,410,396
Property and equipment:
Machinery and equipment 9,925,040 -- 9,925,040
Less accumulated depreciation (5,848,927)-- (5,848,927)
Net property and equipment 4,076,113 --4,076,113
Total Assets 5,024,481 1,167,077 294,951 6,486,509
Liabilities
Current liabilities:
Accounts payable 55,893 926 235 57,054
Compensated absences -982,103 -982,103
55,893 983,029 235 1,039,157Total current liabilities
Total Liabilities 55,893 983,029 235 1,039,157
Net Position
Net investment in capital assets 4,076,113 -- 4,076,113
Unrestricted 892,475 184,048 294,716 1,371,239
Total Net Position $4,968,588 $184,048 $294,716 $5,447,352
138
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
Year Ended December 31, 2021
Equipment
Replacement
Employee
Benefits
Insurance
Risk Total
Operating revenues
Charges for services $632,614 $-$62,783 $695,397
Operating expenses
Materials, supplies and services (36,020)926 12,113 (22,981)
Administration 14,174 -477 14,651
Depreciation expense 699,147 --699,147
Total operating expenses 677,301 926 12,590 690,817
Operating income (loss)(44,687)(926)50,193 4,580
Nonoperating revenues (expenses)
Property taxes 200,244 --200,244
Miscellaneous revenue 2,213 --2,213
Investment earnings -195 37 232
Gain (loss) on sale of assets 46,020 --46,020
Total nonoperating revenues (expenses)248,477 195 37 248,709
Change in net position 203,790 (731)50,230 253,289
Total net position - January 1 4,764,798 184,779 244,486 5,194,063
Net position - December 31 $4,968,588 $184,048 $294,716 $5,447,352
139
City of Hopkins
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2021
Equipment Employee Insurance
Replacement Benefits Risk Totals
Cash Flows from Operating Activities
Receipts from customers and users $ - $ - $ 62,783 $ 62,783
Receipts from interfund services provided 651,583 - - 651,583
Payments to suppliers (5,396)(926)(12,100)(18,422)
Payments for interfund services used (14,174)(315,871)(477)(330,522)
Net cash provided (used) by operating activities 632,013 (316,797) 50,206 365,422
Cash Flows from Noncapital Financing Activities
Taxes 200,244 - - 200,244
Net cash provided by noncapital financing activities 200,244 - - 200,244
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets (510,018) - - (510,018)
Proceeds from sales of capital assets 46,020 - - 46,020
Net cash used by capital and related
financing activities (463,998) - - (463,998)
Cash Flows From Investing Activities 2,687 532 85 3,304
Net increase (decrease) in cash and cash equivalents 370,946 (316,265) 50,291 104,972
Cash and Cash Equivalents - January 1 558,499 1,483,294 244,652 2,286,445
Cash and Cash Equivalents - December 31 $ 929,445 $ 1,167,029 $ 294,943 $ 2,391,417
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (44,687) $ (926) $ 50,193 $ 4,580
Adjustments to reconcile operating income (loss) to -
net cash provided (used) by operating activities: -
Depreciation expense 699,147 - - 699,147
(Increase) decrease in: -
Accounts Receivable (17,051) - - (17,051)
Increase (decrease) in: -
Accounts, compensated absences and accrued interest - -
payable (5,396)(315,871) 13 (321,254)
Net Cash Provided (Used) by Operating Activities $ 632,013 $ (316,797) $ 50,206 $ 365,422
140
OTHER SUPPLEMENTARY
INFORMATION
141141
CITY OF HOPKINS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended Decemeber 31, 2021
Variance with
Budgeted Amounts Actual Final Budget
Original Final Amounts Over (Under)
Revenues
Taxes
Property Taxes $ 12,896,352 $ 12,896,352 $ 12,792,890 $ (103,462)
Franchise Fees 296,200 296,200 306,032 9,832
Total Taxes 13,192,552 13,192,552 13,098,922 (93,630)
Licenses and Permits 589,715 589,715 786,390 196,675
Intergovernmental Revenues
Federal: - - 5,909 5,909
State:
State - Police Aid 300,000 300,000 354,174 54,174
State - Fire Aid 121,000 121,000 142,094 21,094
Municipal state aid 170,000 170,000 185,220 15,220
Local Government Aid 853,671 853,671 853,671 -
Other Grants and Aids 30,000 30,000 18,153 (11,847)
Total Intergovernmental Revenues 1,474,671 1,474,671 1,559,221 84,550
Charges for Services
General Government 11,000 11,000 241,687 230,687
Public Safety 146,900 146,900 146,203 (697)
Public Works 3,150 3,150 17,240 14,090
Parks and Recreation 67,500 67,500 68,868 1,368
Total Charges for Services 228,550 228,550 473,998 245,448
Fines and Forfeitures 194,800 194,800 117,492 (77,308)
Miscellaneous Revenues
Investment Income 15,000 15,000 - (15,000)
Contributions and Donations 10,500 10,500 5,978 (4,522)
Other 45,050 45,050 29,415 (15,635)
Total Miscellaneous Revenues 70,550 70,550 35,393 (35,157)
Total Revenues 15,750,838 15,750,838 16,071,416 320,578
Expenditures
General Government
Current:
Mayor and Council $ 102,095 $ 102,095 $ 75,782 $ (26,313)
Administration 914,847 914,847 865,971 (48,876)
Legal 200,000 200,000 282,546 82,546
Finance 615,241 615,241 657,317 42,076
City Clerk/Elections 176,656 176,656 141,144 (35,512)
Municipal Building 390,560 390,560 393,877 3,317
Planning & Zoning 233,000 233,000 190,091 (42,909)
Other General Government 69,200 69,200 14,907 (54,293)
Capital Outlay - - 3,800 3,800
Total General Government 2,701,599 2,701,599 2,625,435 (76,164)
142
CITY OF HOPKINS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended Decemeber 31, 2021
Variance with
Budgeted Amounts Actual Final Budget
Original Final Amounts Over (Under)
Expenditures (Continued)
Public Safety
Current:
Police $ 6,242,454 $ 6,242,454 $ 6,047,742 $ (194,712)
Fire 1,566,528 1,566,528 1,687,829 121,301
Building Inspections 650,393 650,393 585,587 (64,806)
Other Protection - - -
Capital Outlay 4,850 4,850 6,375 1,525
Total Public Safety 8,464,225 8,464,225 8,327,533 (136,692)
Health and Welfare
Current:
Community Inspections 224,345 224,345 37,978 (186,367)
Capital Outlay - - - -
Total Health and Welfare 224,345 224,345 37,978 (186,367)
Highways and Streets
Current:
Building Services 358,736 358,736 455,740 97,004
Engineering 240,077 240,077 21,364 (218,713)
Streets 1,139,034 1,139,034 1,091,223 (47,811)
Snow Removal 229,414 229,414 230,433 1,019
Capital Outlay 28,000 28,000 15,613 (12,387)
Total Public Works 1,995,261 1,995,261 1,814,373 (180,888)
Culture and Recreation
Current:
Recreation 2,228,487 2,228,487 1,961,412 (267,075)
Capital Outlay 2,000 2,000 21,527 19,527
Total Parks and Recreation 2,230,487 2,230,487 1,982,939 (247,548)
Urban Redevelopment and housing
Current:
Development 114,921 114,921 106,802 (8,119)
Total Expenditures 15,730,838 15,730,838 14,895,060 (835,778)
Excess of Revenues Over (Under) 20,000 20,000 1,176,358 1,156,358
OTHER FINANCING SOURCES (USES)
Transfers Out
To Governmental Funds 20,000 20,000 20,000 -
Total Other Financing Sources (Uses) 20,000 20,000 20,000 -
Net increase (decrease) in Fund Balance $ - $ - $ 1,156,358 $ 1,156,358
Fund balance - January 1 7,357,502
Fund balance - December 31 $ 8,513,860
143
City of Hopkins
144
CITY OF HOPKINS, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2021
SECTION III
STATISTICAL SECTION
145
City of Hopkins
146
CITY OF HOPKINS, MINNESOTA
STATISTICAL SECTION
This part of the City of Hopkins’ annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and the required supplementary information says about the city’s overall financial
health.
Contents Page
Financial Trends 148
These schedules contain trend information to help the reader understand how the
city’s financial performance and well-being have changed over time.
Revenue Capacity 154
These schedules contain information to help the reader assess the factors affecting
the city’s ability to generate its property and sales taxes.
Debt Capacity 160
These schedules present information to help the reader assess the affordability of the
city’s current levels of outstanding debt and the city’s ability to issue additional debt in
the future.
Demographic and Economic Information 164
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the city’s financial activities take place and
to help make comparisons over time and with other governments.
Operating Information 166
These schedules contain information about the city’s operations and resources to
help the reader understand how the city’s financial information relates to the services
the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
147
City of Hopkins
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
Governmental activities
Net investment in capital assets $ 31,891,229 $ 30,666,268 $ 31,272,253 $ 32,609,356
Restricted 8,684,347 10,014,203 16,967,889 16,967,889
Unrestricted 7,854,941 9,575,287 1,902,270 (9,447,813)
Total governmental activities net position $ 48,430,517 $ 50,255,758 $ 50,142,412 $ 40,129,432
Business-type activities
Net investment in capital assets $ 16,405,495 $ 16,621,198 $ 16,937,928 $ 17,893,856
Unrestricted 2,262,236 2,469,397 1,954,212 1,419,018
Total business-type activities net position $ 18,667,731 $ 19,090,595 $ 18,892,140 $ 19,312,874
Primary Government
Net investment in capital assets $ 48,296,724 $ 47,287,466 $ 48,210,181 $ 50,503,212
Restricted 8,684,347 10,014,203 16,967,889 16,967,889
Unrestricted 10,117,177 12,044,684 3,856,482 (8,028,795)
Total primary government net position $ 67,098,248 $ 69,346,353 $ 69,034,552 $ 59,442,306
148
Schedule 1
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 33,833,387 $ 32,064,111 $ 37,136,053 $ 37,857,254 $ 40,389,884 $ 40,801,556
16,967,889 16,967,889 16,547,512 16,056,962 20,092,105 22,955,218
(18,308,556)(17,563,673)(14,432,266)(14,865,750)(9,862,920)(5,907,384)
$ 32,492,720 $ 31,468,327 $ 39,251,299 $ 39,048,466 $ 50,619,069 $ 57,849,390
$ 21,798,183 $ 23,990,746 $ 28,627,563 $ 31,184,022 $ 27,683,345 $ 26,950,711
435,435 1,443,445 1,733,552 1,863,196 4,083,537 4,765,994
$ 22,233,618 $ 25,434,191 $ 30,361,115 $ 33,047,218 $ 31,766,882 $ 31,716,705
$ 55,631,570 $ 56,054,857 $ 65,763,616 $ 69,041,276 $ 68,073,229 $ 67,752,267
16,967,889 16,967,889 16,547,512 16,056,962 20,092,105 22,955,218
(17,873,121)(16,120,228)(12,698,714)(13,002,554)(5,779,383)(1,141,390)
$ 54,726,338 $ 56,902,518 $ 69,612,414 $ 72,095,684 $ 82,385,951 $ 89,566,095
149
City of Hopkins
Changes in Net Position,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015 2016 2017
Expenses
Governmental activities:
General Government $ 2,056,756 $ 2,108,141 $ 2,276,155 $ 6,656,991 $ 10,341,183 $ 6,751,459
Public Safety 6,382,270 6,357,722 6,526,230 6,665,974 8,561,759 8,126,086
Health and Welfare 136,528 165,649 171,187 185,248 185,301 179,916
Highways and Streets 3,226,807 5,845,437 5,709,009 4,542,014 5,168,939 5,932,978
Urban Development and Housing 2,362,030 2,000,868 2,247,553 1,249,457 1,398,736 1,354,036
Culture and Recreation 1,726,812 1,857,743 1,941,912 2,068,887 2,231,605 2,737,116
Interest on long-term debt 811,914 908,264 711,697 688,155 952,756 1,335,290
Total governmental activities expenses 16,703,117 19,243,824 19,583,743 22,056,726 28,840,279 26,416,881
Business-type activities:
Water 1,365,542 1,387,807 1,540,940 1,699,540 1,878,807 1,871,868
Sewer 1,816,058 1,995,886 2,042,106 2,061,180 2,251,291 2,406,027
Storm Sewer 451,659 448,170 508,686 394,707 397,660 460,771
Refuse 862,286 825,329 834,113 848,685 867,823 874,750
Pavilion/Ice Arena 430,082 426,634 460,246 462,771 483,035 547,831
Housing and Redevelopment Authority 563,863 615,043 625,667 610,318 616,653 591,895
Total business-type activities 5,489,490 5,698,869 6,011,758 6,077,201 6,495,269 6,753,142
Total primary government expenses $ 22,192,607 $ 24,942,693 $ 25,595,501 $ 28,133,927 $ 35,335,548 $ 33,170,023
Program Revenues
Governmental activities:
Charges for services:
General Government $ 40,360 $ 76,477 $ 56,635 $ 82,686 $ 72,716 $ 175,390
Public Safety 159,642 180,548 118,248 79,415 274,661 172,584
Health and Welfare 55,331 57,032 57,235 47,085 58,264 59,645
Highways and Streets 78,226 75,840 96,573 127,221 125,749 125,046
Urban Development and Housing 3,444 228 242 220,027 190,199 146,491
Culture and Recreation 684,018 756,011 740,147 810,762 770,466 788,549
Operating grants and contributions 3,499,465 5,273,474 2,943,889 4,970,313 4,087,923 8,007,553
Capital grants and contributions 1,350,147 1,775,717 2,728,416 501,029 1,109,278 1,731,738
Total governmental activities program revenues 5,870,633 8,195,327 6,741,385 6,838,538 6,689,256 11,206,996
Business-type activities:
Charges for services:
Water 1,534,071 1,483,133 1,497,699 1,514,086 1,526,290 1,837,434
Sewer 2,015,166 1,999,333 2,025,763 2,172,277 2,215,251 2,698,307
Storm Sewer 801,345 799,603 802,898 805,542 810,142 809,262
Refuse 894,534 901,670 906,387 910,672 959,258 956,056
Pavilion/Ice Arena 70,976 65,055 31,914 24,876 22,275 37,080
Housing and Redevelopment Authority 255,921 272,109 256,884 277,885 282,125 294,000
Operating grants and contributions 698,769 561,111 795,199 622,332 721,677 697,635
Capital grants and contributions 206,681 144,076 - - 702,555 -
Total business-type activities program revenues 6,477,463 6,226,090 6,316,744 6,327,670 7,239,573 7,329,774
Total primary government program revenues $ 12,348,096 $ 14,421,417 $ 13,058,129 $ 13,166,208 $ 13,928,829 $ 18,536,770
Net (Expense)/Revenue
Governmental activities $ (10,832,484) $ (11,048,497) $ (12,842,358) $ (15,218,188) $ (22,151,023) $ (15,209,885)
Business-type activities 987,973 527,221 304,986 250,469 744,304 576,632
Total primary government net expense $ (9,844,511) $ (10,521,276) $ (12,537,372) $ (14,967,719) $ (21,406,719) $ (14,633,253)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes $ 10,354,188 $ 10,565,115 $ 11,207,914 $ 11,038,746 $ 11,994,436 $ 12,895,910
Franchise Taxes
Tax Increments 2,332,863 2,002,607 2,700,110 2,920,681 2,959,459 2,146,730
Unrestricted grants and contributions 20,724 21,152 20,510 20,510 20,510 20,510
Unrestricted investment earnings 106,304 105,213 193,546 279,418 124,406 168,437
Gain on sale of capital assets 38,427 34,651 27,235 27,535 62,013 69,883
Miscellaneous
Transfers 145,000 145,000 493,093 (864,187)(2,089,914)(3,533,235)
Total governmental activities 12,997,506 12,873,738 14,642,408 13,422,703 13,070,910 11,768,235
Business-type activities:
Property taxes - - - - 63,519 -
Grants & Contributions not restricted - - - - - -
Unrestricted investment earnings 9,040 18,788 24,503 64,161 13,231 20,760
Gain on sale of capital assets 760 21,855 - 23,477 9,776 (54)
Loss on disposal of capital assets 8,000 - - - - -
Miscellaneous
Transfers (145,000)(145,000)(493,093) 864,187 2,089,914 3,533,235
Total business-type activities (127,200)(104,357)(468,590) 951,825 2,176,440 3,553,941
Total primary government $ 12,870,306 $ 12,769,381 $ 14,173,818 $ 14,374,528 $ 15,247,350 $ 15,322,176
Change in Net Position
Governmental activities 2,165,022 1,825,241 1,800,050 (1,795,485)(9,080,113)(3,441,650)
Business-type activities 860,773 422,864 (163,604) 1,202,294 2,920,744 4,130,573
Total primary government $ 3,025,795 $ 2,248,105 $ 1,636,446 $ (593,191) $ (6,159,369) $ 688,923
Note: The City began separately identifying Franchise Fee Revenues in 2020.
150
Schedule 2
Fiscal Year
2018 2019 2020 2021
$ 4,361,727 $ 5,435,138 $ 2,949,580 $ 721,904
7,846,565 9,200,365 8,112,419 7,229,926
196,435 189,917 182,017 37,970
4,562,075 5,175,949 5,554,108 8,435,670
2,352,139 2,431,931 3,281,052 3,023,619
2,015,291 2,385,415 1,959,265 1,965,858
65,784 212,538 1,946,713 1,921,725
21,400,016 25,031,253 23,985,154 23,336,672
1,704,965 2,204,922 1,805,150 2,115,519
2,288,938 2,618,842 2,562,282 2,608,224
461,036 605,214 581,641 577,563
910,481 924,090 964,002 1,111,069
689,178 1,081,741 1,038,880 1,138,086
677,169 743,227 642,736 606,643
6,731,767 8,178,036 7,594,691 8,157,104
$ 28,131,783 $ 33,209,289 $ 31,579,845 $ 31,493,776
$ 43,471 $ 207,884 $ 152,975 $ 363,606
171,291 912,258 685,188 810,623
48,550 220,450 174,717 141,294
165,600 161,687 161,546 399,013
961,625 25,264 473,402 535,434
861,815 1,045,810 564,036 688,346
11,597,974 2,337,984 5,472,891 846,098
1,630,559 - - 972,490
15,480,885 4,911,337 7,684,755 4,756,904
1,931,035 1,997,826 1,815,713 2,379,130
2,780,090 2,880,695 2,440,559 3,128,088
806,605 806,193 800,605 802,568
954,620 984,085 969,796 975,107
62,161 484,640 316,822 464,169
402,899 285,861 244,196 263,898
579,401 901,137 360,912 217,609
- - - -
7,516,811 8,340,437 6,948,603 8,230,569
$ 22,997,696 $ 13,251,774 $ 14,633,358 $ 12,987,473
$ (5,919,131) $ (20,119,916) $ (16,300,399) $ (18,579,768)
785,044 162,401 (646,088) 73,465
$ (5,134,087) $ (19,957,515) $ (16,946,487) $ (18,506,303)
$ 14,343,939 $ 16,937,577 $ 19,934,102 $ 16,768,653
1,201,549 1,190,241 1,183,050
2,433,504 3,209,850 3,812,055 4,244,240
56,990 629,159 810,638 906,581
225,337 396,461 129,584 26,182
45,002 1,162 131,004 46,020
34,990 40,079
(4,218,053)(2,458,675) 1,828,388 471,762
12,886,719 19,917,083 27,871,002 23,686,567
81 40,054 288,525 340,249
- 2,648 2,595 646
13,153 17,925 10,174 2,660
17,210 4,400 8,710 -
- - - -
5,684 4,565
4,218,053 2,458,675 (949,936)(471,762)
4,248,497 2,523,702 (634,248)(123,642)
$ 17,135,216 $ 22,440,785 $ 27,236,754 $ 23,562,925
6,967,588 (202,833) 11,570,603 (18,579,768)
5,033,541 2,686,103 (1,280,336)(50,177)
$ 12,001,129 $ 2,483,270 $ 10,290,267 $ (18,629,945)
151
City of Hopkins
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
General Fund
Nonspendable $ 196,500 $ 231,608 $ 213,499 $ 227,113
Restricted - - - -
Assigned 508,767 426,768 339,055 340,189
Unassigned 4,488,876 4,823,141 5,184,081 5,439,798
Total general fund $ 5,194,143 $ 5,481,517 $ 5,736,635 $ 6,007,100
All other Governmental Funds
Nonspendable $ 1,718,341 $ 1,495 $ 201 $ 204
Restricted 6,312,043 5,199,415 12,683,242 16,720,476
Committed 2,679,389 4,509,026 4,574,733 4,882,609
Assigned 4,785,717 3,313,086 4,162,299 1,249,239
Unassigned (2,090,788) (2,011,214) (2,029,619) (1,960,918)
Total all other governmental funds $ 13,404,702 $ 11,011,808 $ 19,390,856 $ 20,891,610
Total all funds $ 18,598,845 $ 16,493,325 $ 25,127,491 $ 26,898,710
152
Schedule 3
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 87,263 $ 135,373 $ 192,368 $ 211,100 $ 189,994 $ 245,213
- - - - - 33,754
340,857 245,494 245,494 245,494 245,494 245,494
5,437,774 5,471,420 5,179,824 5,627,395 6,922,014 7,989,399
$ 5,865,894 $ 5,852,287 $ 5,617,686 $ 6,083,989 $ 7,357,502 $ 8,513,860
$ - $ - $ - $ 8,740 $ 1,233,628 $ 15,443
15,207,736 13,114,006 13,826,248 14,085,841 17,095,651 17,768,230
5,034,095 5,157,831 3,722,663 4,589,273 4,704,059 3,343,340
- 1,655,606 - - - 341,514
(2,789,907)(1,536,968)(3,373,861)(3,123,872)(3,420,274)(1,598,838)
$ 17,451,924 $ 18,390,475 $ 14,175,050 $ 15,559,982 $ 19,613,064 $ 19,869,689
$ 23,317,818 $ 24,242,762 $ 19,792,736 $ 21,643,971 $ 26,970,566 $ 28,383,549
153
City of Hopkins
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2012 2013 2014 2015
Revenues
Property Taxes $ 10,403,945 $ 10,600,854 $ 11,212,334 $ 11,190,091
Tax Increments 2,332,863 2,002,607 2,700,110 2,920,681
Special Assessments 1,307,949 1,634,903 1,202,401 1,003,444
Frachise Fees
Intergovernmental 1,549,464 3,775,172 3,272,977 2,234,195
Licenses and Permits 476,296 649,672 569,585 489,373
Charges for Services 787,724 884,354 835,960 848,775
Fines and Forfeits 253,530 251,170 229,807 258,924
Investment Earnings 94,235 94,024 172,012 257,543
Miscellaneous 1,881,347 1,343,592 1,148,505 1,474,048
Total revenues 19,087,353 21,236,348 21,343,691 20,677,074
Expenditures
Current:
General Government 1,598,885 1,598,885 2,126,004 2,586,582
Public Safety 6,144,206 6,089,431 6,154,320 6,253,424
Health and Welfare 136,169 164,237 167,088 176,248
Highways and Streets 2,193,209 4,709,377 4,495,659 3,180,023
Urban Redevelopment and Housing 2,826,172 2,826,172 2,192,453 1,219,526
Culture and Recreation 1,510,024 1,510,024 1,747,614 1,851,741
Capital outlay 2,470,049 4,272,737 2,144,714 8,789,979
Debt Service
Principal 1,635,000 3,265,000 1,970,000 8,570,000
Interest and fiscal charges 819,238 853,433 709,367 646,387
Total expenditures 19,332,952 25,289,296 21,707,219 33,273,910
Excess (deficiency) of revenues
over expenditures (245,599)(4,052,948)(363,528)(12,596,836)
Other Financing Sources (Uses)
Proceeds from Issuance of Debt 5,985,000 1,920,000 1,895,000 18,735,000
Issuance of refunding debt - - 6,345,000 -
Discount on Debt (12,830) - - -
Premium on Debt 65,705 42,010 214,606 425,129
Refunded bond payment - - - (3,927,887)
Transfer In 4,788,179 2,948,556 9,351,659 8,513,635
Transfer Out (4,989,453)(3,210,410)(8,858,566)(9,377,822)
Total other financing sources (uses) 5,836,601 1,700,156 8,947,699 14,368,055
Net change in fund balances $ 5,591,002 $ (2,352,792) $ 8,584,171 $ 1,771,219
Debt service as a percentage of
noncapital expenditures 14.60%19.60%13.70%37.60%
Note: Capital outlay has been adjusted for items not shown as capital expenditures on the entity wide statements and reclassified to their
respective expenditure category.
Note: Franchise Fee Revenue have been separately identified beginning in 2019.
154
Schedule 4
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 12,181,695 $ 13,089,431 $ 14,414,205 $ 16,198,293 $ 17,615,073 $ 17,650,766
2,959,459 2,146,730 2,433,504 3,209,850 3,812,055 4,244,240
1,404,258 1,753,923 1,121,267 1,485,089 1,469,269 972,490
1,201,549 1,190,241 1,183,050
2,698,372 3,743,694 8,466,571 2,967,143 3,532,869 3,197,671
686,785 811,826 702,431 813,964 660,802 786,390
1,000,847 1,008,699 933,517 999,088 1,131,867 1,532,034
223,131 230,804 190,395 196,519 154,458 129,999
115,925 157,870 215,005 386,362 124,848 23,737
1,870,874 2,463,487 1,260,706 2,134,390 256,452 527,768
23,141,346 25,406,464 29,737,601 29,592,247 29,947,934 30,248,145
2,886,837 3,285,079 2,872,325 3,734,294 3,158,192 2,988,920
6,718,046 7,154,007 7,600,081 7,994,658 8,406,864 8,476,240
181,666 177,734 190,623 185,824 179,037 37,978
3,797,748 4,546,602 3,283,862 3,514,461 4,029,879 3,567,039
1,337,387 1,306,327 2,294,347 2,364,752 3,242,027 3,050,907
2,016,229 2,107,616 2,024,126 2,052,975 1,563,283 2,870,586
7,325,037 11,753,941 19,310,698 12,147,357 3,792,987 1,931,480
3,075,000 3,080,000 3,890,000 6,475,000 4,715,000 8,265,000
855,114 1,050,401 1,496,932 1,670,990 2,064,981 1,975,385
28,193,064 34,461,707 42,962,994 40,140,311 31,152,250 33,163,535
(5,051,718)(9,055,243)(13,225,393)(10,548,064)(1,204,316)(2,915,390)
8,770,000 13,530,000 6,715,000 13,565,000 5,280,000 3,720,000
3,540,000 - - - - -
- - - - - -
452,971 1,352,173 168,423 1,292,974 556,513 136,611
(7,305,660)(3,678,549) - - - -
8,112,133 12,157,526 9,870,518 13,748,936 6,822,304 8,469,208
(12,098,618)(15,690,761)(8,822,290)(16,207,611)(6,127,906)(7,997,446)
1,470,826 7,670,389 7,931,651 12,399,299 6,530,911 4,328,373
$ (3,580,892) $ (1,384,854) $ (5,293,742) $ 1,851,235 $ 5,326,595 $ 1,412,983
18.80%18.20%22.80%29.10%24.80%32.80%
155
Schedule 5
City of Hopkins
Assessed and Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Less:Total Taxable
Payable Residential Apartment Commercial Industrial Other Tax-Exempt Market Total Direct
Year Property Property Property Property Property Property Value Tax Rate
2012 816,431 252,968 422,769 174,254 1,492 179,699 $ 1,488,215 $ 59.718
2013 867,012 269,812 405,840 174,255 1,492 179,699 1,538,712 63.819
2014 838,714 277,435 419,190 177,413 1,492 179,699 1,534,545 64.290
2015 917,367 313,183 430,897 181,538 1,506 179,699 1,664,792 62.503
2016 961,676 363,334 439,692 191,925 1,604 179,699 1,778,532 65.581
2017 999,228 406,566 530,859 198,797 1,350 254,549 1,882,251 64.485
2018 1,004,480 449,375 541,376 181,049 1,429 254,549 1,923,160 67.833
2019 1,128,890 562,141 580,479 174,975 1,519 254,549 2,193,455 71.697
2020 1,188,831 596,056 603,388 200,628 1,585 254,549 2,335,939 70.748
2021 1,224,197 609,086 603,812 209,376 1,383 254,549 2,393,305 67.664
Notes:
(1) The direct tax rate is applied to the tax capacity of the property which is calculate by applying a statutory formula to the estimated market value
of the property. The tax capacity is then multiplied by the direct tax rate to determine the city taxes payable on a specific parcel.
(2) Tax exempt property is revalued on a six-year cycle. All other property is revalued on a three year cycle.
156
Schedule 6
City of Hopkins
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
City Direct Rate Overlapping Rates
Fiscal
Year Basic Rate
General
Obligation Debt
Service
Total
Direct
School
District
Hennepin
County
Metro
Council Other
Total
Overlapping
Total Direct and
Overlapping Tax
Rate
2012 52.238 7.480 59.718 29.270 48.231 3.084 7.827 88.412 148.130
2013 55.902 7.917 63.819 29.730 49.461 3.242 8.241 90.674 154.493
2014 55.743 8.547 64.290 32.358 49.959 3.335 8.716 94.368 158.658
2015 53.884 8.619 62.503 30.340 46.398 3.006 8.094 87.838 150.341
2016 55.365 10.216 65.581 28.514 45.356 2.899 7.864 84.633 150.214
2017 54.251 10.234 64.485 25.611 44.087 2.821 7.755 80.274 144.759
2018 53.153 14.680 67.833 29.035 42.808 2.630 7.984 82.457 150.290
2019 53.153 15.870 69.023 27.022 41.861 2.542 7.172 78.597 147.620
2020 53.945 16.803 70.748 27.190 41.084 2.461 6.869 77.604 148.352
2021 52.361 15.303 67.664 26.478 38.210 2.268 6.565 73.521 141.185
Source: Hennepin County, Minnesota Taxpayer Services Department
Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service are based on each year's requirements.
157
Schedule 7
City of Hopkins
Principal Property Taxpayers,
Current Year and Ten Years Ago
2021 2012
Percentage Percentage
of Total of Total
City City
Tax Tax Tax Tax
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Colfin Midwest (Cargil) $ 1,604,370 1 5.18 % $ - - - %
Pidemont 9320 Excelsior Blvd 814,970 2 2.63 - - -
Doran 810 Apartments 688,750 3 2.22 - - -
Greenfield Apartments LP 579,376 4 1.87 - - -
Hopkins Distribution Co LLC 507,250 5 1.64 - - -
Ramsgate Apartments, LLC 476,525 6 1.54 210,613 6 1.09
Southwest Real Estate, Inc. 335,890 7 1.08 222,163 5 1.14
Hopkins Apartments 281,288 8 0.91 - - -
The Luther Co., LTD 265,368 9 0.86 - - -
Duke Realty Ltd Partnership 262,290 10 0.85 199,490 8 1.03
Super Valu - 969,890 1 5.00
American Fund US Invest LP - 738,510 4 3.81
Excelsior Crossings Investments LLC - 740,650 3 3.82
Hines Global Reit 9320 Excel - 740,770 2 3.82
Hopkins Real Estate, LLC - 210,250 7 1.08
Hines Reit Mpls Ind LLC - 199,250 9 1.03
City Center Ventures, LLC - 185,450 10 0.96
- - - -
Total $ 5,816,077 18.77 % $ 4,417,036 22.76 %
Total City 2021/2012 tax capacity $ 30,985,429 19,405,415
Source: Hennepin County, Minnesota Assessor's Office
Notes: Tax capacity is a percentage of total market value. For taxes payable in 2011 and forward these class rates are 1% for residential, 1.25% for apartments and
1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties.
158
Schedule 8
City of Hopkins
Property Tax Levies and Collections,
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year Fiscal Year of Levy Total Collections to Date
Percentage Collections in Percentage Outstanding Percentage
Fiscal Operating Debt Total Tax of Subsequent of Delinquent of Levy
Year Tax Levy Tax Levy Levy Amount Levy Years (2)Amount Levy Taxes Outstanding
2012 9,119,591 1,306,400 10,425,991 10,181,764 97.7% 122,430 10,304,194 98.8% 121,797 1.2%(1)
2013 9,219,774 1,306,400 10,526,174 10,319,805 98.0% 45,857 10,365,662 98.5% 160,512 1.5%
2014 9,268,754 1,421,461 10,690,215 10,506,537 98.3% 13,474 10,520,011 98.4% 170,204 1.6%
2015 9,735,801 1,514,844 11,250,645 11,009,239 97.9% 44,044 11,053,283 98.2% 197,362 1.8%
2016 10,338,764 1,907,878 12,246,642 12,120,075 99.0%(9,407) 12,110,668 98.9% 135,974 1.1%
2017 11,151,866 2,103,366 13,255,232 12,984,829 98.0% 20,227 13,005,056 98.1% 250,176 1.9%
2018 11,403,994 3,149,223 14,553,217 14,187,600 97.5% 143,754 14,331,354 98.5% 221,863 1.5%
2019 12,714,661 3,613,429 16,328,090 16,163,548 99.0% 2,708 16,166,256 99.0% 161,834 1.0%
2020 13,647,481 4,250,154 17,897,635 17,804,266 99.5% 8,169 17,812,435 99.5% 85,200 0.5%
2021 14,057,804 4,108,650 18,166,454 18,103,600 99.7% - 18,103,600 99.7% 62,854 0.3%
Notes:
(1) For the year 2011 State of MN unalloted $257,696 in Market Value Homestead Credit that is included in the total levy.
Had the City received those funds, outstanding delinquent taxes would be reduced to $153,757 and
the percentage of levy outstanding would be 1.5%.
(2) During the years 2010-2015 there were a significant number of tax court challenges that resulted in taxes being
rebated to taxpayers resulting in higher delinquent taxes for the years 2008-2015.
159
Schedule 9
City of Hopkins
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Governmental Activities (1)Activities (1)
General HRA Tax Special Net Net Total Percentage
Fiscal Obligation Lease Revenue Increment Assessments Capital Premiums Revenue Premiums Primary of Personal Per
Year Bonds Bonds Bonds Bonds Lease (Discounts) Bonds (Discounts) Government Income Capita
2012 10,130,650 - 6,733,274 7,262,674 279,083 - 4,832,960 - 29,238,641 15.02% 1,652
2013 9,388,707 - 4,691,998 8,745,591 237,990 - 6,054,706 - 29,118,992 14.23% 1,623
2014 15,092,501 - 4,095,716 10,123,177 194,868 - 5,488,002 - 34,994,264 16.94% 1,900
2015 15,637,818 - 15,519,181 8,757,855 149,616 - 4,807,632 - 44,872,102 20.75% 2,436
2016 23,522,410 - 17,869,376 8,155,188 102,128 - 4,422,261 - 54,071,363 23.94% 2,812
2017 35,893,456 - 16,852,700 7,547,520 52,675 - 6,500,290 - 66,846,641 28.63% 3,518
2018 36,883,957 - 19,269,286 6,919,853 - - 9,369,368 - 72,442,464 33.68% 3,797
2019 47,657,083 - 19,269,286 6,919,853 - - 8,661,985 - 82,508,207 35.09% 4,185
2020 51,980,000 - 11,325,000 4,400,000 - 3,530,119 15,800,000 1,032,584 88,067,703 37.64% 4,467
2021 50,855,000 - 11,105,000 1,200,000 - 3,333,432 17,875,000 110,226 84,478,658 34.77% 4,428
Notes: Details regarding the District's outstanding debt can be found in note 9 of the notes to the financial statements.
See the Demographic and Economic Statistics schedule on schedule 14 for personal income
and population data.
(1) The City began identifying premiums and discounts separately in 2020.
160
Schedule 10
City of Hopkins
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General Obligation Bonds
Less Percentage of
General Tax Debt Service Actual Taxable
Fiscal Obligation Improvement Revenue Increment Fund Net Value of Per
Year Bonds Bonds Bonds Bonds Total Balance Bonded Debt Property Capita
2012 10,130,650 7,262,674 4,832,960 6,733,274 28,959,558 6,543,187 22,416,371 1.506% 1,266
2013 9,388,707 8,745,591 6,054,706 4,691,998 28,881,002 7,871,612 21,009,390 1.365% 1,171
2014 15,092,501 10,123,177 5,488,002 4,095,716 34,799,396 14,373,448 20,425,948 1.331% 1,109
2015 15,637,818 8,757,855 4,807,632 15,519,181 44,722,486 15,540,533 29,181,953 1.750% 1,518
2016 23,522,410 8,155,188 4,422,261 17,869,376 53,969,235 11,342,561 42,626,674 2.397% 2,217
2017 35,893,456 7,547,520 6,500,290 16,852,700 66,793,966 10,596,245 56,197,721 2.986% 2,958
2018 36,883,957 6,919,853 9,369,368 19,269,286 72,442,464 8,599,909 63,842,555 3.320% 3,346
2019 47,522,953 4,933,026 8,661,984 18,637,449 79,755,412 6,244,002 73,511,410 3.351% 3,759
2020 54,773,025 4,468,576 16,832,583 11,993,519 88,067,703 9,435,593 78,632,110 3.366% 3,989
2021 54,079,894 1,259,127 18,985,226 11,126,247 85,450,494 6,363,710 79,086,784 3.305% 4,145
Notes:
Details regarding the city's outstanding debt can be found in note 9 of the notes to the financial statements
See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data
See the Demographic and Economic Statistics schedule 14 for population data
G.O Improvement bonds are included as they are backed by a general tax levy and special assessements levied against benefitted properties
G.O. Revenue bonds are included as they are backed by the full taxing authority of the City should revenues fall short of debt requirements
G.O. Tax Increment bonds are included as they are backed by property taxes levied against the properties benefitting from specific development for which the bonds were issued.
161
Schedule 11
City of Hopkins
Direct and Overlapping Governmental Activities Debt
As of December 31, 2021
Estimated
Estimated Share of
Net Debt Percentage Overlapping
Outstanding Applicable (a)Debt
Debt repaid with property taxes:
School Districts:
Hopkins ISD 270 $ 156,770,000 16.96% $ 26,588,192
St. Louis Park ISD 283 126,075,000 0.59% 743,843
Other Debt:
Hennepin County 1,481,535,000 1.13% 16,741,346
Hennepin Suburban Park District 58,550,000 1.60% 936,800
Hennepin Regional RR Authority 90,580,000 1.13% 1,023,554
Metropolitan Council 1,897,693,968 0.55% 10,437,317
Subtotal - overlapping debt 56,471,051
City of Hopkins Direct Debt (b,c) 63,160,000 100.00% 63,160,000
Total Direct and Overlapping Debt: $ 119,631,051
Source: Hennepin County, Minnesota Taxpayer Services
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule shows the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process
recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying
the debt, of each overlapping government.
(a) The percentage of overlapping debt applicable is estimated using the taxable market values. Applicable percentages were estimated by
determining the portion of the county's and school district's taxable market value that is within the City's boundaries.
(b) City of Hopkins direct debt includes long-term debt instruments of the City which are bonds and capital leases of the government.
(c) Net Debt Outstanding excludes revenue bonds.
162
Schedule 12
City of Hopkins
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
Legal Debt Margin Calculation for Fiscal Year 2021
Market value $ 2,393,305
Debt limit (3% of market value) 71,799
Debt applicable to limit:
General Obligation Bonds 47,515
Less: Amount set aside for repayment of
general obligation debt (4,792)
Total net debt applicable to limit 42,723
Legal debt margin $ 29,076
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt limit $ 42,189 $ 46,161 46,036 $ 48,168 $ 51,633 $ 54,888 $ 57,695 $ 64,368 $ 68,712 $ 71,799
Total net debt applicable to limit 9,402 8,903 8,736 14,661 21,761 24,401 32,175 43,834 42,563 42,723
Legal debt margin $ 32,787 $ 37,258 37,300 $ 33,507 $ 29,872 $ 30,487 $ 25,520 $ 20,534 $ 26,149 $ 29,076
Total net debt applicable to the limit
as a percentage of debt limit 22.29%19.29%18.98%30.44%42.15%44.46%55.77%68.10%61.94%59.50%
163
Schedule 13
City of Hopkins
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per
Income (2)Capita
Fiscal (thousands Personal School Unemployment
Year Population (1)of dollars)Income (2)Enrollment (3)Rate (4)
2012 17,701 193,488 47,136 8,556 5.1
2013 17,939 203,498 49,147 8,555 4.3
2014 18,413 206,789 49,460 8,489 3.8
2015 19,227 216,218 51,244 8,495 3.1
2016 19,227 225,882 53,121 8,327 3.8
2017 19,000 233,465 53,166 8,182 3.6
2018 19,079 215,086 59,736 8,152 2.8
2019 19,555 227,292 62,889 8,345 2.7
2020 19,713 233,890 64,255 8,806 6.0
2021 19,079 245,833 67,214 8,139 2.6
Sources: (1) Metropolitan Council.
(2) U.S. Department of Commerce Bureau of Economic Analysis data for Minnesota Metropolitan Area
(3) Minnesota Department of Education and is for public and non-public schools in Hopkins School District #270
(4) Minnesota Department of Employment and Economic Development, based on December rates
164
Schedule 14
City of Hopkins
Principal Employers,
Current Year and Ten Years Ago
2021 2012
Percentage Percentage
of Total of Total
Taxpayer Employees Rank Employment Employees Rank Employment
UNFI (formally SuperValu) (2) 1,400 2 7.338 % 1,249 2 13.067 %
ISD 270 Hopkins (1) 1,401 1 7.343 707 3 3.994
Colfin Midwest NNN INV LLC (Cargil) 1,215 3 6.368 2,313 1 7.056
Thermotech 400 4 2.097 190 7 1.073
US Post Office 314 5 1.646 314 4 1.774
Oak Ridge Country Club 185 6 0.970 195 6 1.102
Augustana Chapel View Care Center 185 7 0.970 185 8 1.045
US Bank 185 8 0.970 185 9 1.045
City of Hopkins 113 9 0.592 160 10 0.904
Walser Chrysler Dodge Jeep Ram 100 10 0.524 - - -
Viro Med Labortories - - - 200 5 1.130
Total 5,498 28.817 % 5,698 32.190 %
Source: Minnesota Department of Employment and Economic Development.
Notes:
(1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
(2) Reflects employees in the corporate office and warehouse.
165
Schedule 15
City of Hopkins
Full-Time Equivalent City Employees by Type
Last Ten Fiscal Years
Full-time-Equivalent Employees as of December 31, 2021
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government
Administrative Services 4.95 5.00 5.00 5.00 5.05 5.50 5.00 4.00 5.00 6.55
Finance 4.60 4.60 4.60 4.60 4.00 5.00 4.00 4.00 4.00 4.00
Municipal Building 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45
Community Services 9.80 9.80 9.70 9.70 8.65 7.20 8.95 8.95 6.95 8.40
Public Safety
Police 39.50 36.45 34.50 36.50 36.78 38.45 38.28 38.45 37.28 38.28
Fire 1.20 1.25 1.25 1.25 3.25 3.25 4.10 4.10 4.10 5.10
Public Works 17.69 17.69 17.09 18.09 17.58 18.09 19.98 20.98 19.98 18.48
Recreation
Activity Center 3.20 3.20 3.20 3.20 3.25 3.20 2.80 3.00 2.00 3.00
Skate Park 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Planning & Zoning 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35
Community Development 0.85 0.85 0.85 0.85 1.50 0.85 0.85 0.85 0.85 0.85
Total General Government 83.79 81.69 79.04 82.04 82.91 84.39 86.81 87.18 83.01 87.51
Special Revenue Funds
Economic Development 1.60 1.15 1.60 1.60 1.25 1.60 2.00 2.00 2.00 2.00
Paratransit - - - - - - - - - -
Housing Rehabilitation - - - - - - - - - -
Parking 0.72 0.72 0.72 1.00 0.72 0.72 1.12 1.12 1.12 1.12
Section 8 - - - - - - - - - -
Communication 0.25 0.25 0.25 0.25 0.75 1.25 1.00 1.00 1.00 1.00
Depot Coffee House 1.50 2.50 2.50 2.50 5.25 5.25 5.00 4.62 2.75 2.75
Art Center 4.30 3.80 3.80 4.30 4.30 4.30 5.28 5.28 4.66 5.50
Total Special Revenue Funds 8.37 8.42 8.87 9.65 12.27 13.12 14.40 14.02 11.53 12.37
Enterprise Funds
Water 3.13 3.13 3.13 3.43 2.60 3.43 4.79 3.79 4.79 4.15
Sanitary Sewer 3.46 3.46 3.46 3.76 3.40 3.76 2.60 2.60 2.60 2.24
Refuse 3.89 3.89 3.89 3.89 4.09 4.09 3.39 3.39 3.39 3.56
Storm Sewer 0.63 0.63 0.63 0.63 0.43 0.63 0.63 0.63 0.63 0.66
Pavilion/Ice Arena 2.40 2.40 2.40 2.90 2.90 2.90 2.70 2.90 2.40 2.90
Housing and Redevelopment 2.20 2.20 2.20 2.20 2.40 2.40 2.40 2.40 2.40 2.40
Total General Government 15.71 15.71 15.71 16.81 15.82 17.21 16.51 15.71 16.21 15.91
Total 107.87 105.82 103.62 108.50 111.00 114.72 117.72 116.91 110.75 115.79
Source: City Finance Office
166
City of Hopkins
167
City of Hopkins
Operating Indicators by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2012 2013 2014 2015 2016
General Government
Elections 2 1 2 1 2
Registered voters 10,912 9,917 10,912 9,647 10,418
Number of votes cast 9,130 1,674 9,130 1,058 9,198
Voter participation (registered)83.70%16.90%83.70%11.00%88.30%
Public Safety
Police
Total Calls for Service 25,379 25,286 26,140 23,535 24,549
Sworn Officers 26 26 26 28 27
Traffic Stops 7,602 6,333 5,741 6,055 6,910
Parking Citations 958 979 820 725 640
Fire
Fires 36 38 51 18 81
False Alarm 91 101 100 103 130
Fire Runs 382 382 428 467 566
Medical Runs 141 178 195 177 171
Average Response Time (minutes) 4.0 4.2 4.2 4.4 4.2
Inspections
Building Permits 501 509 455 501 451
Value of Building Permits $ 9,804,196 $ 44,183,445 $ 16,453,935 $ 12,631,596 $ 76,838,870
.
Public Works
Miles of seal coating 5.36 5.49 5.26 1.81 1.05
Miles of crack sealing 4.13 3.75 5.85 5.26 1.54
Sidewalk repairs in square feet 5,770 5,172 4,482 6,800 6,286
Alley repairs in square yards 201 190 41 182 180
Culture and Recreation
Art Center
Bookings 307 4,440 4,747 5,013 4,981
Reserved Hours 26,406 27,442 29,440 31,759 31,320
Customer Visits for Events/Activities 219,975 213,487 215,371 216,450 211,969
Water
Gallons of water pumped (in millions) 781 817 812 751 787
Number of well house inspections 2,480 2,465 2,510 2,190 2,450
Number of hydrants flushed 142 138 150 120 139
Water Rate - Tier One $ 1.96 $ 2.02 $ 2.10 $ 2.18 $ 2.18
Water Rate - Tier Two
Water Rate - Tier Three
Sanitary Sewer
Sanitary sewage flow (in millions of gallons) 601.9 579.0 628.6 615.0 605
Miles of sewer lines jetted 14.7 16.2 14.6 12.0 15
Number of manholes checked/cleaned 1,337 1,413 1,400 274 1,025
Lift Station Maintenance checks 4,314 4,307 4,401 4,350 4,283
Sewer Rate $ 3.75 $ 3.90 $ 4.10 $ 4.30 $ 4.30
Refuse
Number of refuse accounts 2,681 2,706 2,709 2,735 2,692
Tons of refuse collected 2,470 2,136 2,393 2,368 2,095
Tons of recycled material (residential) 1,182 757 1,114 1,106 166
Refuse rate 15.85-21.85 16.85 - 24.30 16.85 - 24.30 16.85 - 24.30 $16.85 - 24.30
Recycling rate $ 4.00 $ 4.25 $ 4.25 $ 4.50 $ 5.00
Pavilion/Ice Arena
Ice time rental hours 1,429 1,401 1,370 1,365 1,284
Turf use hours 869 865 810 818 749
Mezzanine rental use 1,260 1,386 2,147 2,822 2,847
Source: Various City Departments
Notes:
(1) Information not available is labeled N/A..
168
Schedule 16
Fiscal Year
2017 2018 2019 2020 2021
1 2 1 2 1
10,366 22,279 22,279 12,613 11,986
2,164 11,583 11,583 10,598 2,674
20.90%52.0%52.0%84.0%22.3%
26,724 26,063 23,996 26,139 21,432
27 27 30 30 28
6,232 6,212 4,929 3,589 1,720
662 542 499 423 303
43 31 39 39 29
123 110 29 36 38
415 322 235 180 303
119 143 111 129 1,208
4.2 4.2 4.1 4.1 4.6
485 405 506 636 707
$ 19,553,988 $ 27,785,861 $ 45,193,752 $ 21,124,485 $ 38,156,628
.....
1.32 1.18 N/A 1.98 1.53
2.22 2.33 8.87 1.35 N/A
10,260 25,905 40,100 4,543 1,202
1,235 712 45 N/A N/A
4,761 3,975 3,859 272 425
32,993 24,901 19,509 1,864 3,157
220,032 227,291 220,512 41,537 66,204
760 720 656 682 705
1,095 1,095 1,095 1,095 1,095
139 - 337 337 290
2.44 2.60 2.78 3.04 3.10
2.81 3.00 3.20 3.49 3.56
3.23 3.45 3.68 4.01 4.09
598 560 448 570 597
15 13 14 12 14
274 302 357 528 390
1,945 1,095 1,825 1,825 2,005
$ 5.81 $ 6.12 $ 6.46 $ 6.86 $ 6.86
2,687 2,698 2,687 2,698 2,707
2,215 2,162 2,132 3,027 2,193
966 676 676 1,822 941
$17.85-25.30 $17.85-25.30 $17.85-25.30 $17.85-25.30 $17.85-25.30
$ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00
1,385 1,213 1,714 926 1,433
682 425 446 221 183
7,315 8,892 14,289 20,404 4,551
169
Schedule 17
City of Hopkins
Capital Asset Statistics by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 11 11 11 11 11 11 11 11 11 11
Fire
Stations 1 1 1 1 1 1 1 1 1 1
Public Works
Highways (miles) 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57
County Highways 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32 5.32
City Streets (miles) 47.50 47.50 47.50 47.50 47.50 47.5 47.5 47.5 47.5 47.5
Alleys (miles) 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52
Streetlights 398 398 398 398 398 398 398 398 398 398
Traffic Signals 44 44 44 44 44 44 44 44 44 44
Refuse collection trucks 3 3 3 3 3 3 3 3 3 3
Culture & Recreation
Parks
Parks 16 16 16 16 16 16 16 16 16 16
Park Trails 4 4 4 4 4 4 4 4 4 4
Park Acres 104 104 104 104 104 104 104 104 104 104
Park Shelters 11 11 11 11 11 11 11 11 11 11
Playgrounds 11 11 11 11 11 11 11 11 11 11
Skateboard Park/Inline Skating 1 1 1 1 1 1 1 1 1 1
Skating Rinks 7 7 7 7 7 7 7 7 7 7
Hockey Rinks 5 5 5 5 5 5 5 5 5 5
Basketball Courts 6 6 6 6 6 6 6 6 6 6
Pickleball Courts - - - - - - - 1 1 1
Softball Fields 4 4 4 4 4 4 4 4 4 4
Swimming Beach 1 1 1 1 1 1 1 1 1 1
Tennis Courts 8 8 8 8 8 8 8 8 8 8
Volleyball Courts 2 2 2 2 2 2 2 2 2 2
Watermains
Distribution System (miles) 52.60 52.60 52.60 52.60 52.60 52.6 52.6 52.6 52.6 52.6
Fire Hydrants 560 560 560 560 560 560 560 560 560 560
Storage Capacity (gallons in thous) 3,200 3,200 3,200 3,200 3,200 3200 3200 3200 3200 3200
Water Connections 3,168 3,168 3,168 3,168 3,168 3168 3168 3168 3168 3168
Sanitary Sewer
Collection System (miles) 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46
Sewer Connections 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086
Storm Sewer
Pipe (miles) 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40
Parking
Parking Lots 7 7 7 7 7 7 7 7 7 7
Parking Ramp 1 1 1 1 1 1 1 1 1 1
Source: Various City Departments
170