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2023 City of Hopkins BudgetCity of Hopkins, Minnesota Annual Budget January 1 - December 31, 2023 Inspire ● Educate ● Involve ● Communicate City of Hopkins 1010 First St S Hopkins, MN 55343 952-935-8474 www.hopkinsmn.com CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2023 City Council Term Expires Mayor Patrick Hanlon ....................December 31, 2023 Councilmember Gerard Balan .................December 31, 2025 Councilmember Heidi Garrido .................December 31, 2025 Councilmember Brian Hunke .................December 31, 2023 Councilmember Alan Beck ..................December 31, 2023 Management Team Mike Mornson .........................City Manager Kersten Elverum ...............Director of Planning & Development Ari Lenz .......................Assistant City Manager Nick Bishop ........................Director of Finance Kelly O’Dea ........................Recreation Director Brent Johnson ..........................Police Chief Dale Specken ...........................Fire Chief Chuck Autio .....................Director of Public Works This document was developed and compiled by the Finance Department, City of Hopkins CITY OF HOPKINS TABLE OF CONTENTS Introduction/Background City Manager’s Budget Message ...........................................................................................4 Distinguished Budget Presentation Award ............................................................................8 Organization Chart .................................................................................................................9 Community Profile ................................................................................................................10 Organization Structure .........................................................................................................13 Organization Mission Statement, Vision & Goals ................................................................14 Financial Management and Policies ....................................................................................15 Budget Calendar ...................................................................................................................18 Budget Planning Process .....................................................................................................20 Fund Structure ......................................................................................................................21 Budget Overview Authorized and Approved Staffing Levels ............................................................................25 2023 Summary Budget Information by Major and Non-Major Funds .................................27 2023 Budget Summary – All Funds .....................................................................................28 2023 Revenue Summary – All Funds ..................................................................................30 2023 Appropriation Summary – All Funds ...........................................................................34 Property Tax Information ......................................................................................................37 Fund Balance........................................................................................................................42 Debt Overview ......................................................................................................................45 Capital Improvements Overview ..........................................................................................50 General Fund Budget Projection ..........................................................................................54 Other Major Funds Budget Projections ................................................................................58 General Fund ............................................................................................................................62 Special Revenue Funds ..........................................................................................................124 Enterprise Funds .....................................................................................................................153 General Debt Service Funds...............................................................................................170 Glossary ..................................................................................................................................171 City of Hopkins 1010 First Street South Hopkins, MN 55343-7573 Phone: 952-935-8574 Fax: 952-935-1834 Web address: www.hopkinsmn.com January 2023 Residents, Honorable Mayor, City Council City of Hopkins Hopkins, Minnesota 55343 Dear Residents, Mayor and Council Members: It is my pleasure to present to you the City of Hopkins 2023 Budget. Hopkins’ strong financial position and proactive fiscal management practices allowed options for the City Council to maintain a service delivery at current levels while minimizing the impact on the 2023 tax levy. The final result is an adopted 2023 budget totaling $39,771,515 of which $17,188,440 is the General Fund. This budget lives within the City’s financial resources, meets basic service needs, provides for the maintenance and replacement of the City’s infrastructure, and plans for the future, keeping Hopkins’ good financial condition intact. The Municipal Budget is intended to reflect the goals, objectives, and priorities established by the City Council with input from the residents and taxpayers of Hopkins, and fairly represent the revenues and expenditures necessary to provide the services and programs desired by the community. The city governing body involves its’ residents and constituents through its mission and vision statement “Inspire • Educate • Involve • Communicate” by: conducting Hopkins Academy for residents, providing a state of the city address, publishing a city annual report, and communicating with the community as often as possible regarding many city initiatives and proposed polices. The budget adoption is a significant way in which the City Council expresses their leadership. The City Council establishes budget goals, which are accurately reflected in this budget. 2023 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. Net Property Tax Cost for Median Value Home – A Financial Management Plan model is being used that can provide council with long range estimates of the tax changes on a median value home. The model incorporates many variable that can affect tax rates, including projected operating costs, future debt service, capital costs, and changes to the tax base. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for each of the City’s general fund programs. Community Engagement - Informs residents of the difficult decisions made during the budget process and assists City Council in determining what programs and services are most valued by the community. Opportunities for engagement have included: information kiosks, a budget survey and a community budget event. City of Hopkins Mission Statement  Inspire Educate Involve Communicate  4 CITY OF HOPKINS HOPKINS IN 2022 In the year 2022, the nation's economy continued to adapt and grow after the COVID-19 pandemic. 2022 saw continued challenges to the City and service delievery. All core services have been provided in 2022 with some revised service models. Program budgeting has helped in our analysis of city services, while we look at ways to continue to as efficient as possible. The Council and city staff also continues to investigate additional revenue sources. In 2022, the City’s tax base continued to grow due primarily due to market growth, with the largest increases coming from residential and apartment properties. The City's total tax capacity increased 3.4% due mainly to these factors. In 2022 the overall taxable market value increased by 3.1% due to the same factors. The city’s levy has increased an average of 5.8% per year over the last five years. The City’s general fund expenditures have increased an average of 5.1% a year over the last five years. This increase is directly related to salary and benefit increases for employees, insurance costs and infrastructure. Diligent planning and management has helped in keeping operating expenditures down. The employee compensation has remained competitive in the market for both those with and those without labor contracts. This was affirmed by a Classification and Compensation Study conducted during 2017. The number of employees has remained stable at 114-116. ECONOMIC OUTLOOK Hopkins is a diverse community made up of a healthy mix of residential, commercial and industrial properties. United Natural Food Inc. purchased Supervalu, the largest food wholesaler in the nation, during 2018. United Natural Food Inc. is a Fortune 500 company that now has a strong presence in Hopkins. Excelsior Crossings is a large corporate campus with three buildings totaling over 900,000 square feet and room for approximately 4,000 employees. A division of another fortune 500 company, US Bank, occupies a significant portion of the campus. Digi International, a technology company, is now headquartered in one of the three Excelsior Crossing buildings. Hopkins economic outlook has remained relatively stable. The City has expanded its commercial tax base through redevelopment. Hopkins is an inner-ring suburb of Minneapolis with a good mix of 51% residential, 24% commercial and industrial and 25% apartment properties (based on estimated market values). Hopkins participates fully in the Minneapolis and Hennepin County economies. Hopkins has preserved its central downtown area where development continues because of its highly desirable location. Hopkins wealth levels are above average when compared nationwide. REDEVELOPMENT Significant redevelopment has occurred within the City of Hopkins over the past five years. This redevelopment has contributed substantially towards the increase in property values and by making Hopkins a more desirable place to live and work. Some of the more recent projects are: Redevelopment of a vacant office and clinic site into 163 luxury apartments with retail space Redevelopment of a vacant downtown building into a craft brewery and tap room. Redevelopment of a former office building into 241 high end luxury apartments and retail space. Redevelopment of ten duplexes into 51 affordable apartments adjacent to public transit and parks. Infill development of a 43 unit affordable apartment building on an existing parking lot Redevelopment of an underlitized commercial building into a 250 apartments, and mixed use retail In addition to projects other development continues in Hopkins. During 2022, construction continued on Southwest Light Rail Green Line Extension. This is the largest public works project in Minnesota’s history and will have three stations located in Hopkins. The project will make Hopkins an attractive area for redevelopment. The City has seen an increased interest in properties near the station areas for redevelopment, especially apartments. 5 CITY OF HOPKINS LONG TERM OBJECTIVES The City Council and staff have established long term objectives for the community and the working environment Increase ratio of residential properties. Maintain the high quality of our livable community. Increase tax base to spread share of tax burden. BUDGET OBJECTIVES FOR 2023 Maintain core City services at a reasonable price for residents and commercial/industrial users. Use program budgeting as a tool for analysis of all programs and services to: look for ways to reduce dependency on the property tax, find greater efficiencies in the provision of current services and programs, compare staffing levels to workloads to assure proper allocation of resources, create greater linkages between revenues and expenses, to allow for more entrepreneurial approaches to non-essential services. Forecast funding needs and tax implications to assure strong long-term financial stability. Continue policy of avoiding the use of fund balances for operating expenses. Recognize and award employees that assist the City in saving money. Evaluate and investigate other sources of revenue. BUDGET CONSIDERATIONS These are areas to consider that may affect the budget during the next few years. State Tax Reform: Property Classification Changes – In the past there has been a tendency to shift some of the tax burden back to residential taxpayers from commercial/industrial taxpayers. Tax Increment Finance – Any changes in property classifications impact property taxes generated by TIF districts. Currently the tax generated in the various districts is projected to be sufficient to cover any debt or liabilities created in the districts. Property Tax Freeze and/or Levy Limits – Levy limits have been on and off again since 2008. This uncertainly poses budget challenges as cities are uncertain if they will again be re-instated. For the 2023 budget year there were no levy limits which give cities more budget flexibility in meeting the needs of their residents while maintaining essential city services. State Aids – The City of Hopkins no longer receives significant state aids as a revenue source however the legislature did increase the amount of Local Government Aid (LGA) allocated to Cities for 2023. The city received approximately $880,000 of LGA in 2022 and will receive approximately $926,000 in 2023. Real Estate Values – Overall real estate values in this community increased by approximately 3.1% in 2022. This resulted in an increase in the City’s tax capacity of 3.4% due to varying tax capacity rates between residential, apartment, commercial and industrial properties. Overall, general fund budgeted expenditures will increase by 6.27% in 2023 due to salaries and benefits increases and an addition of 1.5 full-time equivalents which were offset by increased revenues. At the time of this budget, we project an average 4.00% increase for 2023-2026. Future programs and services provided by the City of Hopkins may change in relation to available revenue sources. The City Council and staff along with their financial advisor will be updating the City’s long-range financial management plan that assists in current and future budgeting. The plan was adopted in 2014 and was implemented for the 2015 budget and is used for budget planning each year. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and sets forth a plan to stabilize all funds. 6 CITY OF HOPKINS Fund Balances for governmental fund types will continue to be strong for the next 3 to 4 years, absent any significant changes in the policy of avoiding the use of fund balance reserves for current expenditures. GAUGING THE CITY The City uses the following performance measures: Tax levy history in relation to the consumer price index. Tax Impact on Median Value Home Comparisons of comparable communities Goal achievement 2023 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, while keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount while at the same time allowing the City enough funds to continue with the level and quality of service it currently has. This has been particularly challenging the last few years as the City continues to make infrastructure improvements. The city’s tax rate has held fairly steady over the past five years ranging from 62.93% to 70.17%. The proposed 2023 city tax rate of 62.93% is a 2.50% decrease from 2022. The adopted General Fund budget has a 6.27% expenditure increase for a total General Fund Budget of $17,188,440. The total tax levy increase for 2023 is 3.45%. The levy includes funds designated for general fund operations, Arts Center, Pavilion and debt service payments. The monthly city tax cost for a median valued home of $361,000 is about $187 or approximately $2,189 for the year not including credits for state programs. The city’s goals and objectives were once again reviewed and updated by city staff, commissions, residents and the City Council. They are integral part in meeting the needs of the residents. The goals and strategic plans set at the beginning of 2022 are included in the budget document on pages 14-15. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 7 PRESENTED TO City of Hopkins Minnesota For the Fiscal Year Beginning January 01, 2022 Executive Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award 8 9 CITY OF HOPKINS COMMUNITY PROFILE The first settlers of Hopkins arrived in 1852; however, the roots of the town begin in 1887 with the building of the Minneapolis Threshing Machine Company, later called Minneapolis Moline. Minneapolis Moline once employed most of the Hopkins residents. The West Minneapolis Land Company was also founded in 1887 and was formed to build housing for the Minneapolis Moline factory workers. In 1893, the Hennepin County Board of Commissioners received a petition signed by 41 residents, asking that the village be formed. Following an election, the community was then incorporated as the village of West Minneapolis. The original village was comprised of three square miles, and it has been enlarged by annexation to its present size of about four square miles. The population at the time of its incorporation was 1,105; today, there are 19,713 people living in Hopkins. In 1928, the name of the village was changed to Hopkins - for Harley H. Hopkins who was among its first homesteaders and was the community's first postmaster. The first mayor was Harley Hopkins' son, Chester L. Hopkins. On January 1, 1948, the village became a city upon adoption of a City Charter with a Council/Manager form of government. The City Council consists of four council members and the mayor. Council members serve four-year terms and are elected at large. The mayor is elected at large for a two-year term. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City manager. Hopkins has always had a core business district, and in the center of that early business district was Hopkins City Hall at 8th Ave N and Mainstreet. Completed in 1912, it housed the city's police and jail in the rear portions, and city offices, library and meeting room upstairs. The fire station was on the main level, and the firefighters used horse drawn rigs. The building was remodeled in 1940 to accommodate more fire trucks. That fire station was torn down in 1965 after a new City Hall, Police Station and Fire Station were built at 1010 1st St S. In 2004, a new Fire Station was built on 17th Ave. The Police Department was expanded and remodeled in 2005. City Hall was renovated 2019. In the summer of 1982, the city and its Public Works Department accomplished the challenge of building a city garage on a small area, using as many of the existing structures as possible, doing it within a $475,000 budget, and doing it without disrupting city services. The Public Works facility was expanded and remodeled in 2004. Adjacent to the Public Works facilities is the Hopkins Pavilion, which was built with money from a 1989 park bond referendum. The facility opened in December 1991. It is now one of the premier facilities of its kind in the Twin Cities area, and is used for soccer, lacrosse, in-line roller hockey, skating and ice hockey. The facility was expanded and remodeled in 2018. The Hopkins Activity Center, a multipurpose community facility, opened in January 1981 at the site of the former South Junior High School. A variety of programs for people of all ages are offered at the Activity Center. It was renovated in 1990, and the facility includes a gymnasium, meeting rooms and kitchen. The Hopkins Historical Society, which was started more than 30 years ago, also is located in the Activity Center. The Hopkins Center for the Arts, 1111 Mainstreet, opened in November 1997. The Arts Center stands as a focal point for arts, culture and entertainment in the Hopkins community, the Twin Cities metro area and the region. It is a community-gathering place where young and old can enjoy high quality, multi-disciplinary cultural arts programs and community activities. The Arts Center includes a theater, a visual arts gallery, multipurpose spaces for rehearsals, community activities and small performances, a visual arts classroom, a dance studio, and kitchen facilities for serving catered food. It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival, now in its 87th year. The first festival was organized in 1934 by a group of community business people who were concerned that the Hopkins economy and community needed a boost. 10 Minnesota CITY OF HOPKINS Hopkins is a suburban city in Hennepin County, Minnesota located just 13 minutes west of the Twin Cities of Minneapolis and St. Paul. The City is four square miles in size surrounded by larger suburban communities. Hopkins is about 98% developed with little remaining vacant land. U.S. Route 169 and Minnesota Highway 7 are two of the main arterial routes in the City. Hopkins is a dynamic community of almost 20,000 residents. Founded rich in tradition and growth, Hopkins offers the advantages and conveniences of a large City but yet the security of a small town. The residents and the business community have an enormous sense of pride and support for their City. Travel any street and you will see and feel the reflections of pride and vitality. Hopkins has enriched its spirit of community by remaining a place where people are treated with respect; where the community participates in building culture, character and common bonds; where business growth is supported while a vibrant City Center is maintained; where people feel safe, support outstanding schools and celebrate cultural heritages; and where people enjoy quality parks, housing and public services. Through education, inspiration, involvement and communication, the City Council, City Staff, members of the Boards and Commissions, the business district and the neighborhood associations are committed to enhancing the quality of life in Hopkins. Burnes Park Splash Pad Population: 1920 3,055 1930 3,834 1940 4,100 1950 7,595 1960 11,380 1970 (census)13,395 1980 (census)15,336 1990 (census)16,534 2000 (census)17,145 2010 (census)17,591 2020 (census)19,084 11 CITY OF HOPKINS CITY STATISTICS: Founded 1852 School Enrollment 8,225 Dated of Incorporation November 27, 1893 Education Date of Adoption of City Charter December 20, 1947 Elementary Schools 6 Form of Government Council - Manager Middle Schools 2 Fiscal Year Begins January 1, 2023 High School 1 Area of City 4.1 Square Miles Private Schools 8 2,616 acres Charter Schools 2 Housing Single Family 2,592 Elections: Multiple Family 5,680 Registered Voters - last general election 10,742 Duplexes 500 Number of votes cast last general election 7,284 Townhouses 690 Percentage of registered voters voting 68% Population by Age City Bond Rating 0 to 19 4,097 Stand & Poor's AA+ 20 to 64 12,092 Over 65 2,737 Miles of Streets and Alleys: Income by Household Trunk Highways 3.57 Less than $25,000 12.8%County 5.32 $25,000 - $50,000 15.9%City Streets 47.5 $50,000 - $75,000 15.7%Alleys 9.52 $74,000 - $100,000 12.7% $100,000 - $150,000 18.2%Miles of Sewers: $150,000 or more 24.7%Storm Sewers 21.4 Sanitary Sewers 45.46 Median Household Income $ 51,500 Miles of Watermains 52.6 Per Capita Personal Income $ 38,600 Civil Defense Warning Sirens 3 Unemployment Rate 2.6% Fire Protection: Population Composition Number of Stations 1 White 58.04%Number of FT Employees 5 African American 21.55%Volunteer Firefighters 32 Hispanic or Latinx 8.84% Asian 7.05%Police Protection: Two or More Races 4.30%Number of Stations 1 Native American 0.15%Number of Employees 38 Other Races 0.07% Parks City Parks 16 Playgrounds 11 Total Property Values $2.734 billion Skating Rinks 7 12 CITY OF HOPKINS ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council-manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four-year term and the mayor serves a two-year term. The city manager is the chief administrative officer of the City. The city manager is selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City’s affairs and therefore, supervises all departments and divisions of the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. The organizational hierarchy is shown on page 9. The hierarchy does not always match financial reporting requirements (as shown on page 25). Pages 62-171 provide information on the Functions are several programs. A description of each program, its objectives and budgets are presented in this document. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer residents and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. MISSION, VISION AND GOALS Long-range goals for the City are: o Continually enhance partnerships with residents. o Inspire resident leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is: Responsive to the needs of the community. Innovative. Accessible. Short-term goals are reviewed annually by City Council and staff. The discussion begins with the global environment and ends with prioritizing goals for the near future. Below are the mission, vision and short- term goals for the City along with the strategies and action steps needed to implement them. The budget is developed using the three main goals along with the strategies as guidance. Departments then use the action steps in setting individual departmental goals and budgets so that resources are available to achieve the action steps identified. 13 Inspire. Educate. Involve. Communicate. All people feel safe 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. Enhance community pride by providing accessible, friendly and efficient services Support a vibrant business community Promote Hopkins as a destination and enhance city events Maintain high quality public safety services Maintain physical assets and infrastructure Practice environmental responsibility Strengthen walking and biking infrastructure in the city Support a range of housing options and opportunities for affordability Support transit-oriented sustainable development and growth Foster true inclusion through community engagement and involvement Engage underrepresented populations: communities of color and rental community Embrace and strengthen partnerships Take It To Them Promote a Resilient Community Preserve the Hometown Feel of Hopkins Creating a spirit of community where... MISSION City of STRATEGIES2023 VISION GOALS GOAL SETTING 2023 Explore Additional Affordable Housing Policies Develop Green Cost Share Program Develop Green Infrastructure Special Assessment Policy Implement Proclamations Review Short Term Rental Options Complete Fire Staffing Study Explore Sustainable Building Development Policy Complete Park System Master Plan Complete Market Compensation Study Adopt Equity Strategic Action Plan Discuss Options for Depot Continue to Build Youth Workforce Development Program Implement Economic Development ARPA-Funded Projects Continue to Partner on Community Safety Strategies Priorities for the year aheadACTION STEPS 14 CITY OF HOPKINS FINANCIAL MANAGEMENT AND POLICIES The City of Hopkins Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices, policies and year- end reporting. BASIS OF ACCOUNTING The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for City funds. The exception is the proprietary funds, which are on full accrual. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City’s financial statements as included in the City’s Comprehensive Annual Financial Report at the fund statement level. ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) The City implemented Governmental Accounting Standards Board (GASB) Statement No. 34 for the year ending December 31, 2003. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City operates on a calendar fiscal year and reports its year-end financial position in an Annual Comprehensive Financial Report (ACFR), prepared by the City’s Finance staff. The ACFR is available to the public through the City’s website or by request. The 2022 ACFR will be audited by the independent auditing firm of Abdo to insure accuracy and compliance with federal and state laws and regulations. State law provides that the City may arrange for an examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor or by Certified Public Accountants. It has been a long-standing policy of the City to provide for a complete annual audit of the City records by independent Certified Public Accountants. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Hopkins for its ACFR for the fiscal year ended December 31, 2020. The City believes ACFR for the fiscal year ended December 31, 2021 also meets the program criteria and will receive the award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY The City annually develops a 5-year plan for capital improvements and updates it annually. The five-year budget capital improvement will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete CIP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each capital project proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed project. The City will make all capital improvements in accordance with the adopted capital improvement program or as amended by the City Council. Capital purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its assets at a level adequate to protect the City’s and its resident’s capital investment and to minimize future maintenance and replacement costs. 15 CITY OF HOPKINS EQUIPMENT REPLACEMENT PLAN (ERP) POLICY The City annually develops a 5-year plan for equipment replacement and updates it annually. The five- year budget equipment replacement plan will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete ERP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each equipment proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed equipment purchase. New pieces of equipment not previously in the equipment replacement plan must first be financed through the departmental budget and will be placed in the equipment replacement plan the year following the purchase. The City will make all equipment purchases in accordance with the adopted equipment replacement plan or as amended by the City Council. Equipment purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its equipment assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. BUDGETARY AND FINANCIAL CONTROL POLICIES The council shall have full authority over the financial affairs of the City. City manager shall control and direct the administration of the City's affairs. The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. The manager will prepare and submit to the council at the end of the fiscal year a complete report on the finances and administrative activities of the City for the preceding year; and keep the council advised of the financial condition and future needs of the City. The annual budget shall provide a complete financial plan for the budget year by fund. The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The city clerk shall be the chief purchasing agent of the City. The City will maintain an investment policy that invests available funds to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines. Any money in any fund belonging to the City, or any branch thereof, may be invested by the city manager according to policies adopted by the City Council. The finance director shall be the chief accounting officer of the City and shall submit to the council a statement each quarter containing information relative to the finances of the City as the council may require. Each year the finance director shall submit a report to the council, no later than June 30, covering the entire financial operations of the City for the past year. This report shall follow the style and form, as far as practicable, prescribed for annual City financial reports and copies will be made available to interested parties. BUDGET CONTROLS Budgets are complete financial plans for the future by fund, showing all proposed expenditures and estimates of all anticipated revenues. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. The budget is a public record open to public inspection. The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by resolution. BALANCED BUDGET – It has been City policy to annually approve a balanced General Fund budget. A balanced budget is a budget in which expenditures are equal to income. Other City funds may or may not have a balanced budget depending on when funding is received for specific expenditure needs. For 16 CITY OF HOPKINS example a grant may be budgeted for expenditures that may overlap years. Thus all revenues would be in one year and the expenditures would be in multiple years. BUDGET BASIS – Governmental budgets are prepared on the modified accrual basis and enterprise budgeted on an accrual basis. Budgets are estimates and may be amended under the following guidelines. PREPARATION OF THE ANNUAL BUDGET – The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET – The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET – Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET – Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re-appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc. For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. 17 CITY OF HOPKINS The City follows the procedures below in establishing the budget. 1. The city manager and finance director submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. a. The operating budget includes proposed expenditures and the estimated revenues for the general fund, specified special revenue funds requested by City Council, enterprise funds, internal service funds and debt service funds. b. Capital project funds for the City are not budgeted annually but are included in the Capital Improvement Plan approved by the City Council. Capital projects are approved by the City Council on a per project basis. 2. Public hearings are conducted to obtain taxpayer comments. 3. The general fund budget is enacted through passage of a resolution. 2023 BUDGET CALENDAR January 7 Meet with Council to set parameters and goals for 2023 budget process April 4 Distribute budget worksheets to departments April 12 City Council reviews long term street reconstruction plans May 27 Departmental budgets to be completed and returned to finance June-July Finance reviews and compiles budget summary June 14 City Council reviews long term financial projections July 12 First draft of the general fund budget and tax levy presented to City Council August 15 Public presentation about first draft of general fund budget and tax levy August - September City Council reviews budget and tax levy September 6 City Council adopts preliminary levy and budget September 30 Proposed 2022 levy certified to Hennepin County September - November City Council reviews budget and tax levy November 30 Public Hearing on Budget, Approval of final budget and tax levy December 9 Final 2023 levy certification to Hennepin County INTERNAL CONTROLS In developing and altering the City’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use of disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. the concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and the benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. CASH MANAGEMENT The investment portfolio of the City is designed to attain an average rate of return regularly exceeding the average return on three month US Treasury Bills, while seeking to augment returns above this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent investment principles. Portfolio diversification is considered so that investments are not concentrated in one institution, in one type of investment, or purchased from one dealer. Pursuant to this policy, cash temporarily idle during the year was invested in those investments authorized by law RISK MANAGEMENT The City has an informal risk management policy, the purpose of which is to maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. The City has insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) to ensure 18 CITY OF HOPKINS City property, contractors and miscellaneous equipment, crime, employee performance bonds, autos and general liability. General liability coverage amounts to $1,000,000 per occurrence (and aggregate), with a $20,000 per occurrence, $40,000 aggregate deductible. DEBT The City will confine long-term borrowing to capital improvements, equipment or projects that have a life of more than 10 years and cannot be financed from current revenues. The City may issue debt for its Permanent Revolving fund, which pays for any improvement in which part of the cost of the improvement is to be assessed against the benefiting properties. The City may also issue revenue bonds that are paid back directly from revenue sources other than debt levies. The City may submit to voters the proposition of issuing debt for any public purpose not prohibited by law, and issue the debt upon a favorable majority vote. Whenever possible, the City will use revenue (including G.O. backed revenue) or other self- supporting type bonds instead of general obligation bonds. The City will maintain frequent and regular communication with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The City will comply with Securities Exchange Commission (SEC) reporting. The City will keep the total maturity length of general obligation bonds below 25 years. In all cases the maturity shall be shorter than the life of the related assets. Net general obligation debt (as defined above) will not exceed 3% of the estimated full market value of taxable property in the City as required by Minnesota Statutes Section 475.53. The City may issue emergency bonds to pay for extraordinary expenditures or to cover a shortfall in revenues for budgeted expenditures. Emergency bonds must mature within ten years of issuance. One tenth of the amount is to be levied the first year following issuance and one tenth every year thereafter for ten years. FUND BALANCE The City believes that sound financial management principles require that sufficient funds be retained by the City to provide a stable financial base at all times. To retain this stable financial base, the City needs to maintain a General Fund Balance sufficient to fund all cash flows of the City, to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature, and to provide funds for all existing encumbrances. The following individual items shall constitute the City General Fund Balance: o Restricted Fund Balance – The restricted fund balance category includes the portion of the spendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes o Committed Fund Balance – The committed fund balance classification includes the portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to yearend but the amount can be determined at a later date. o Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. The authority to “assign” fund balance is delegated to the City Finance Director o Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. These are the current resources available for which there are no government self-imposed limitations or set spending plan. Although there is generally no set spending plan for the unassigned portion, there is a need to maintain a certain funding level. Unassigned fund balance is commonly used for emergency expenditures not previously considered. In addition, the resources classified as unassigned can be used to cover expenditures for revenues not yet received. 19 CITY OF HOPKINS The Council recognizes that any such funds should be appropriated for non-recurring expenditures as they represent prior year surpluses that may or may not materialize in subsequent fiscal years POLICY - At the end of each fiscal year, the City will strive to maintain Spendable – Unassigned portions of the fund balance for Cash Flow equivalent to a minimum of five (5) months or 42% of the prior fiscal year General Fund operating expenditures. In addition to cash flow needs this accommodates emergency contingency concerns. MONITORING AND REPORTING - The City Manager and Finance Director shall annually prepare the status of fund balances in relation to this policy and present to the City Council in conjunction with the development of the annual budget. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1.) committed 2.) assigned and 3.) unassigned. A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. BUDGET PLANNING PROCESS The City has developed a number of elements that when been brought together help to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Department Directors then use these goals in developing departmental goals and setting departmental budgets. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. For programs whose goal is to be supported totally by revenues it allows departmental managers to review the fee structure on an annual basis to ensure that goal is met. It also allows the public to determine what portion of a specific department is supported by taxes. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Monitoring tax capacity along with budget needs provides advance notice to management when taxes may rise faster than advisable and allows staff to take appropriate action in revising budget goals and projections. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting in keeping all funds in a positive cash position. Financial Management Plan – In 2014 the City adopted a long-range Financial Management Plan for the years 2015-2024 that addresses financing challenges for several funds, sets forth financing for all items identified in the Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP) (described below), and provides for adequate funding for operational needs in the general, special revenue funds and enterprise funds. Tax base growth is built into the plan so the taxes are indexed each year based on that growth. This plan when followed should make the annual budget much easier to develop. The Financial Management Plan will be updated each year prior to the budget process and used as a guide in preparing the annual budget. This document is key in managing increases in the General Fund, restoring the Art Center Fund to sound financial footing and providing for capital improvements and infrastructure. The Financial Management Plan was developed by staff with assistance from the City’s Financial Advisor who will assist staff in annual updates to the plan to ensure the goals of the City continue to be met. 20 CITY OF HOPKINS Net Property Tax Cost Median Value Home – This provides information to the council incorporating expected increases in valuation and projecting actual costs on the Median Value Home. The council when setting the tax levy is sensitive to its impact on property owners and this benchmark provides information on how the recommended levy will impact city taxpayers. If the council feels the proposed levy will negatively impact property owners options for reducing the levy are explored. These may include revenues alternatives or expenditure decreases or a combination of both. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for each of the City’s general fund programs and demonstrates which city programs are most dependent on taxes. It also provides information to the public on what benefits they receive for their tax dollars. Capital Improvement Plan – The Capital Improvement Plan (CIP) is a five-year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. Equipment Replacement Plan –The Equipment Replacement Plan (ERP) is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $1,400,100. Revenues for the ERP are derived from tax levy and charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. FUND STRUCTURE The accounting system maintains a standard fund structure for a typical Minnesota city government. Following is a description of the funds included that are subject to appropriation, for which financial plans and budget appropriations are prepared annually. These funds are the General, Special Revenue, Debt Service, Capital Projects and Enterprise. General Fund The General Fund accounts for all financial transactions not properly accounted for in any other fund, including most of the basic governmental services. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, parks and public works, recreation, planning, engineering and general government. 21 CITY OF HOPKINS Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains fifteen Special Revenue Funds. There are thirteen budgeted Special Revenue Funds. Chemical Assessment Team Fund – grant funds received from the state restricted for the operation of the Chemical Assessment Team. Economic Development Fund – revenue sources include interest on loans, taxes, development fees that are used for expenditures relating to housing and redevelopment projects throughout the city. Tax Increment Funds (7) – tax increment revenues for housing and economic redevelopment projects throughout the city. Parking Fund – parking permits and parking violation fees help support the maintenance of the city’s current parking lots and ramps. Communication Fund – franchise fee for cable TV supports cable and communications efforts of the city. Depot Coffee House Fund – grants, leases and concession revenues support a local chemical free teen center and coffee house. Art Center Fund – leases, state aids, contributions and program sales support the Hopkins Center for the Arts, which is a community-based center with theater and art at its base. Some of the Special Revenue Funds do not require an annual financial plan because of the nature of the type of revenue and expenditure. Expenditures are authorized on an individual basis. Hennepin County CDBG Fund – block grant funds used for housing and infrastructure improvements Hopkins Race and Equity Initiative – contributions from two outside organizations used in a collaborative effort centered on race equity Debt Service Funds Debt service funds account for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City maintains 24 individual debt service funds for the various bond issues. The City has established annual financial plans for all 24 general obligation bond funds, which are shown in total as the GO Debt Service Funds. Capital Project Funds Capital project funds account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has five budgeted funds in this category: Park Improvement Fund – development and improvement of City parks. Revenue is primarily from park development fees paid by developers. State Aid Construction Fund – revenue from state aid to assist with maintenance and construction of state aid streets throughout the city. Capital Improvement Fund – transfers from other funds to cover future improvements or maintenance of city facilities and infrastructure. Permanent Improvement Revolving Fund – bonds issued to fund reconstruction and maintenance of residential streets throughout the city. Pavilion Addition Fund – contributions from outside organization and bond proceeds to fund Pavilion addition and remodel. 22 CITY OF HOPKINS Enterprise Funds Enterprise funds account for our business-type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has five Enterprise funds. Water Utility Fund – water utility fees based on water usage, which covers the expense of distributing water and maintaining the water system infrastructure. Sewer Utility Fund – sewer utility fees based on water usage, which covers the expense of disposing of sewer products and maintaining the sewer system infrastructure. Refuse Utility Fund – refuse fee based on size of refuse container, which covers the expense of disposing of refuse products. Storm Sewer Utility Fund – storm sewer utility fee based on non-permeable surface of property for commercial or a fixed rate for residential properties, which covers the expense of maintaining the storm sewer infrastructure throughout the city. Pavilion/Ice Arena Fund – rental fees for ice or space, which covers the operating costs of running the facility. 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. The City has three Internal Service Funds and no budgets are prepared for these funds. Equipment Replacement – revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. Employee Benefits – to account for compensated absences of non-enterprise employees Insurance Risk – accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. Major Funds For 2023 the City identifies the following funds as major funds which are described above. All major funds are budgeted. General Fund Economic Development Special Revenue Fund Arts Center Special Revenue Fund Tax Increment District Super Valu Fund Permanent Improvement Capital Projects Fund Water Utility Enterprise Fund Sewer Utility Enterprise Fund Storm Sewer Utility Enterprise Fund Pavilion Enterprise Fund Public art in Hopkins 23 CITY OF HOPKINS City Personnel by Function Administration of Fund General Public Community Community Operating Fund Government Finance Police Fire Works Development Services Recreation General Fund Administrative Services X X X Finance X Community Services X Building Maintenance X X X X Police X Fire X Public Works X Recreation X Activity Center X Planning & Zoning X Community Development X Special Revenue Funds Economic Development X Parking X X Communication X Depot Coffee House X Art Center X Enterprise Funds Water X Sewer X Refuse X Storm Sewer X Pavilion X Housing & Redevelopment X Downtown Hopkins 24 CITY OF HOPKINS Authorized and Actual Staffing Levels Full-Time and Regular Part-Time Positions 1 FTE = an employee who works 40 hours a week 2020 2021 2022 2023 Authorized Authorized Authorized & Actual & Actual & Actual Authorized Administrative Services 5.00 5.55 6.67 6.67 Finance 4.00 4.00 3.60 3.60 Municipal Building 1.45 1.45 1.28 1.28 Community Services 8.40 8.40 8.49 9.49 Police 37.28 37.28 37.23 37.23 Fire 4.10 4.10 4.50 5.50 Public Works 20.48 20.48 20.49 20.49 Skate Park 0.05 0.05 0.05 0.05 Activity Center 3.00 3.00 3.00 3.00 Zoning & Planning 1.35 1.35 1.35 1.35 Community Development 0.85 0.85 0.85 0.85 General Fund Total 85.96 86.51 87.51 89.51 Economic Development 2.00 2.00 2.00 2.50 Parking 1.12 1.12 1.12 1.12 Communications 1.00 1.00 1.00 1.00 Depot Coffee House 2.75 2.75 2.75 2.75 Art Center 4.66 5.50 4.53 4.53 Special Revenue Fund Total 11.53 12.37 11.40 11.90 Water 4.79 4.15 4.15 4.15 Sanitary Sewer 2.60 2.24 2.24 2.24 Refuse 3.39 3.56 3.56 3.56 Storm Sewer 0.63 0.66 0.66 0.66 Pavilion/Ice Arena 2.40 2.90 2.42 2.42 Housing & Redevelopment 2.40 2.40 2.40 2.40 Total Proprietary Funds 16.21 15.91 15.43 15.43 Total All Funds 113.70 114.79 114.34 116.84 The decrease in authorized staffing from 2021 to 2022 of .45 is due to the elimination and combination of positions withing the Public Works Deparment, Art Center and Activity Center. The increase in authorized staffing from 2022 to 2023 is due to an additional police officer and planner position funded through the American Rescue Plan Act and an inspector position funded by increased revenue. 25 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Major Funds Capital Special Revenue Project Enterprise Tax Increment Permanent Storm General Economic District - Super Arts Improvement Water Sewer Sewer Function Fund Dev Valu Center Revolving Utility Utility Utility Pavilion General Government X X X X X X Public Safety X Health and Welfare X Highways and Streets X X Urban Redevelopment and Housing X X Culture and Recreation X X X Capital Outlay X X X X X Debt Service X X X X Water X Sewer X Storm Sewer X Non-Major Funds Special Capital Debt Function Revenue Projects Service Enterprise General Government X X X X Public Safety X Health and Welfare X Highways and Streets X Urban Redevelopment and Housing X Culture and Recreation X Capital Outlay X X Debt Service X Refuse X The Hopkins Academy, a five week program held in even years during March and April allows residents to get a better understanding of how their City government works. The Academy covers the topics of, General Government, Police, Fire, Public Works and Planning & Economic Development. The program has been well received by the community with over 25 participants each year. The 2021 edition of Hopkins Academy was cancelled due to the COVID-19 Pandemic. The City will continue hosting this event when it is safe to do so. 26 CITY OF HOPKINS Summary Budget Information - Major Funds and Non-Major Funds by Fund Type 2020 Actual 2021 Actual 2022 Budget 2023 Budget Budget Difference %age REVENUES General Fund 16,284,759 16,071,416 16,173,620 17,188,440 1,014,820 6.00 Special Revenue Funds Economic Development Fund 1,155,443 955,682 506,302 571,531 65,229 11.00 Arts Center 1,005,974 942,624 1,087,458 1,164,132 76,674 7.00 Non-major Special Revenue Funds 4,463,588 4,818,045 4,320,219 6,301,724 1,981,505 31.00 Capital Project Funds Permanent Improvement Fund 9,540,879 5,212,229 4,697,963 4,479,102 (218,861) -5.00 Capital Improvement Fund 880,069 360,777 413,572 790,140 376,568 48.00 Non-major Capital Projects Funds 1,223,546 720,653 862,683 2,566,468 1,703,785 66.00 Non-major Debt Service Funds 22,044,946 13,492,538 7,302,503 7,096,537 (205,966) -3.00 Enterprise Funds Water Utility Enterprise Fund 1,906,579 2,382,355 2,366,750 2,513,000 146,250 6.00 Sewer Utility Enterprise Fund 2,475,719 3,128,205 3,213,750 3,460,000 246,250 7.00 Storm Sewer Enterprise Fund 835,616 803,066 792,332 810,332 18,000 2.00 Pavilion Enterprise Fund 664,937 805,863 836,500 819,000 (17,500) -2.00 Non-major Enterprise Funds 1,014,025 993,176 1,243,270 1,271,200 27,930 2.00 27 CITY OF HOPKINS Summary of Budgeted Funds GENERAL FUND 2020 Actual 2021 Actual 2022 Budget 2023 Budget Budget Difference %age REVENUES Property Taxes $ 12,451,755 $ 12,792,890 $ 13,305,239 $ 14,020,781 $ 715,542 5.38% Intergovernmental Revenue 2,394,279 1,559,221 1,502,066 1,630,794 128,728 8.57 Licenses, Permits & Fines 841,140 898,361 781,515 869,215 87,700 11.22 Charges for Current Services 241,423 478,540 258,550 329,900 71,350 27.60 Interest on Investments 7,779 - 15,000 20,000 5,000 33.33 Franchise Fees 306,497 306,032 296,200 296,200 -- Other Revenues 41,886 36,372 15,050 21,550 6,500 43.19 $16,284,759 $16,071,416 $16,173,620 $17,188,440 $1,014,820 5.90% APPROPRIATIONS Council $ 81,766 $ 75,782 $ 104,699 $ 105,850 $ 1,151 1.10% Administrative Services 859,909 865,971 912,950 1,020,029 107,079 11.73 Finance 475,619 417,125 462,665 488,795 26,130 5.65 Legal 286,522 282,546 225,000 225,000 -- Municipal Building 377,616 393,878 380,901 380,831 (70) -0.02 Community Services 1,239,125 1,015,071 1,368,920 1,563,673 194,753 14.23 Police 6,117,868 6,047,743 6,417,544 6,958,768 541,224 8.43 Fire 1,531,616 1,687,830 1,616,824 1,633,391 16,567 1.02 Public Works 2,942,042 3,126,374 3,509,559 3,632,028 122,469 3.49 Recreation 627,241 670,940 761,863 793,185 31,322 4.11 Planning 191,295 190,090 204,784 170,842 (33,942) -16.57 Community Development 110,296 106,802 118,711 126,848 8,137 6.85 Unallocated 170,331 34,906 89,200 89,200 -- $15,011,246 $14,915,058 $16,173,620 $17,188,440 $1,014,820 5.90% 28 CITY OF HOPKINS Summary of Budgeted Funds DEBT SERVICE FUNDS (all funds) 2020 Actual 2021 Actual 2022 Budget 2023 Budget Budget Difference % age REVENUES Property Taxes $ 4,232,097 $ 4,114,950 $ 4,003,044 $ 3,892,746 $ (110,298) -3.00% Special Fees 583,124 941,854 735,713 762,447 26,734 4.00 Miscellaneous 19,320 15,429 ---0.00 Proceeds from Bond Sale 5,836,513 3,856,611 ---0.00 Operating Transfers In 11,373,892 4,563,694 2,563,746 2,441,344 (122,402) -5.00 $22,044,946 $13,492,538 $7,302,503 $7,096,537 $(205,966)-2.90% APPROPRIATIONS Bond Principal $ 11,552,921 $ 8,265,000 $ 4,855,000 $ 5,805,000 $ 950,000 20.00% Bond Interest 2,050,729 1,961,352 1,488,370 1,793,497 305,127 20.00 Miscellaneous other charges 226,068 124,241 ---0.00 Transfer out 4,534,606 5,479,736 ---0.00 $18,364,324 $15,830,329 $6,343,370 $7,598,497 $1,255,127 16.52% 29 CITY OF HOPKINS APPROVED BUDGET SUMMARY – ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. Property Taxes: One purpose of the budget is to communicate the financial plans for the City and its allocation of resources. The budgeted revenues for all funds total $44,000,300. The largest source of revenue by category is property taxes of $23,387,755 comprising 58.43% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits have been on again and off again since 2004 and remain off for 2023. Levy limits while providing assurances to taxpayers do give the City the additional challenges in meeting resident’s requests for sustained services or in some instances increased services. In 2023 budgeted taxes increased in total by 5.81% mainly as a result of new tax increments being collected for fully completed projects. The General Fund had a 5.42% increase in the levy due to increases in expenditures that were not offset by other revenue sources. The total levy, excluding tax increments, certified to taxpayers increased by 3.45% Intergovernmental Revenues: Total $2,315,794 or 5.79% of the City’s revenues. The City currently receives local government aid, highway funding, police and fire aid, chemical assessment grants, fire grants Community Development Block Grant funds and other miscellaneous state grants. The City has also receive approximately $2 million of American Rescue Plan Act grants over 2 years. Estimates for intergovernmental revenues are based on known revenue sources and projections are based on information from the various state and county agencies from which the revenues are received. The city has reduced its reliance on revenues from state and federal governments due to decreased availability and reduced funding in the various state programs. Over the past several years the city has been successful in getting grants for specific projects. Those projects are not budgeted due to the uncertainty in the success of our application for those funds. In 2022 we are scheduled to receive $925,794 in Local Government Aid, a $45,728 increase from 2022 that will go to the General Fund and is utilized to reduce the general fund tax levy. 30 CITY OF HOPKINS Utility Fees: For water, sewer, refuse and storm sewer account for $7,573,432 of the City’s revenue or 18.92%. Utility revenue is planned to increase by 5.26% due to operational needs. The increased rates will provide adequate cash flow for operating and capital cost. The City conducted a utility rate study in 2016 and raised water and sewer rates were both increased by approximately 40% in 2017. Each subsequent year has seen a more modest rate increase. 2023 rates will increase by 7.0% for water and sewer. Recycling and organic recycling will increase by 4.8% and 4.6%. Refuse collection and storm sewer rates will not increase in 2023. Charges for Services: Other than utilities are $2,927,099 or 7.31% of the City’s revenues. The City charges for plan reviews, special police or fire services, parking permits for city parking facilities, facility rental, concessions and ice time. A large portion of the charges for services include plan review fees from building permits which are projected to increase in 2023. The variance in revenues between years is due to development projects and the related plan review fees. Finance relies on plan review fee projections prepared by the City’s Building Official and input from departmental managers on the level of activity expected in their departments when setting the budget for this revenue category. The City budgets conservatively on plan review fee income due to the uncertainty of the development market which can change depending on developers funding for their proposed projects. Special Assessments: Special assessments are $762,447 or 1.90% of City Revenue. Special Assessments are levied for street, sidewalk, alley, water, sewer or storm sewer improvements that benefit private property. Special assessment revenue projections are based on the special assessment rolls and scheduled payments in the budget year. 31 CITY OF HOPKINS License, Permits & Fines: are $979,215 or 2.45% of revenues. Permit revenues are dependent on the economy and on future development of the City. The City continues to see redevelopment and as had very strong years in building permit income. While there are other projects in the works the City chooses not to rely on that income until it becomes reality, therefore building permit income continues to be budgeted conservatively based on an average of the past 10 years. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects. License revenue is based on the types of businesses licensed by the city and past year’s collections. Those revenues remain stable. The City also budgets conservatively for fine revenue as that revenue stream is unpredictable. Fine revenue is only received once the fines are collected by the State of MN which then remits Hopkins’ portion to them. Parking permits and ticket revenues remain stable. Franchise Fees: The City collects franchise fees for cable television, electric and gas utilities. The electric and gas rates were increased in 2019. A residential user will pay $3.50 monthly each for gas and electric, or $7.00 per month. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in budgeted funds will be $1,194,200 or 2.71% of City revenues. The City expected collections of $305,022 and $361,500 for the Park Improvement and Capital Improvement funds, respectively. The City uses franchise fees for four different purposes: 1. To provide live streaming and archiving of city council and other meetings, 2. For capital improvement, specifically funding a City Hall renovation, 3. For Park Improvements and 4. To reduce the levy in the general fund. Total 2023 Budgeted Revenue: Increased from 2022 as a result of increased tax revenues and tax increments. The 2023 budget was prepared with increased and decreased revenue as described above. The City workforce has remained stable with many long-term employees. Like other cities we continue to do more with less and work to maximize the budget dollars we do have to work with. Staff has been very conscientious in the management of departmental budgets which has allowed us to maintain staffing while providing the same level if not better services to the public. 32 CITY OF HOPKINS Major Revenue Trends: The chart to the right is showing the trends of three of our major revenue sources. Taxes include both property taxes and tax increments. Taxes continue to increase as other sources of revenue decrease and new tax increment projects come on the tax rolls. Intergovernmental revenues increased in 2023 due to higher allotment of local government aid; we have also continued to be successful in receiving federal COPS grant, a fire prevention and safety grant SAFER grant. Intergovernmental revenues are less reliable and the City is cognizant of that during the budget process. Tax revenues have risen to fill that gap; however we continue to seek other revenue sources to meet our budget needs which include grants. Utility charges have increased to continue to provide adequate cash flow for operating and capital costs.. Shown below is a chart showing the relationship between all revenue sources. 33 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $42,850,012. This is more than anticipated revenues for 2023 and results in an decrease of fund balance of $1,654,116 overall. The special revenue funds will subtract $800,763 where tax increments have built up and will be used, other funds such as the parking fund and communication fund are projected to decrease their fund balance, partially as a result of the COVID-19 pandemic. Enterprise funds are budgeted to slightly decrease their net position by ($351,393) as we work mitigate rising costs in addition to rebuild fund equity and bring the water and sewer fund to a more stable financial position. Debt service funds will see an decrease of $501,960 as our debt service levy increases for new bond issuances. The largest source of appropriations by category is employee salaries and benefits at $15,803,316. Employee salary and benefits make up 36.88% of the City’s annual appropriation and represent a 6.03% increase from 2022 budget. The City completed a classification and compensation study for all employees in 2018. The resulting wage scales were used for the 2023 budget. 3 of 5 union contracts were not settled at the time of budget adoption, actual wage scales or estimates were used as appropriate. Materials, supplies and services make up 23.38% of appropriations at $10,019,976. This amount represents a 35.61% increase from the 2022 budget. The City will make payments towards pay-as-you go notes and other tax increment payments. Staff continues to be as efficient as possible when purchasing materials and supplies and using outside services. Capital outlay and improvements can fluctuate substantially every year. In 2023, the appropriated amount is $180,000 or 0.45% of total appropriations. Anticipated capital costs are street equipment, technology advancements and improvements at the Arts Center. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets. Debt repayment make up 19.24% of appropriations at $8,242,846. This amount represents an decrease of 4.53% from 2022 due to required payment schedules. The six largest programs of the City in 2023 account for 90% of the appropriations budget and are as follows: Public Safety 8.7 million Utilities (water, sewer, storm sewer, refuse) 8.1 million Debt 7.6 million Tax Increment Financing 6.4 million General Government 4.2 million Public Works 3.8 million 34 CITY OF HOPKINS 35 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE 2019 ACTUAL 2020 ACTUAL 2022 BUDGET ADOPTED 2023 BUDGET Current Revenues Property Taxes $17,957,852 $18,159,689 $18,428,902 $19,302,755 Tax Increment 3,812,055 4,244,240 3,600,000 4,085,000 Special Assessments 1,469,269 972,490 735,713 762,447 Intergovernmental Revenue 4,432,868 3,215,372 2,126,875 2,315,794 Licenses, Permits & Fines 1,019,496 942,438 901,515 979,215 Charges for Current Services 3,074,273 3,140,751 2,756,476 2,927,099 Interest on Investments 137,452 25,057 67,844 126,406 Utility Service Charges 6,558,626 6,948,435 7,175,332 7,573,432 Franchise Fees 1,625,241 1,183,050 1,205,246 1,194,200 Other Revenues 6,369,309 493,455 2,895,813 758,952 TOTAL CURRENT REVENUES $46,456,441 $39,324,977 $39,893,716 $40,025,300 Other Financing Sources 5,836,513 3,836,550 2,941,000 3,975,000 TOTAL REVENUES $52,292,954 $43,161,527 $42,834,716 $44,000,300 Inter-Fund Transfers 14,526,489 8,469,208 2,663,746 6,338,516 Other Financing Uses (878,452)--- TOTAL REVENUES $65,940,991 $51,630,735 $45,498,462 $50,338,816 36 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2013 to 2022 reflects overall increased market value of property in Hopkins from redevelopment. During the years 2012 & 2013 the housing market saw significant declines across the country and Hopkins was no exception. The chart to the right depicts tax capacity value over the last ten years as of January 2 or each year. From 2014 through 2020, Hopkins continued to have growth due to commercial development that was already in place when the market turned and a recovering housing market. 2021 & 2022 have increased based on residential and apartment valuations, while commercial remained flat. Based on preliminary information, the tax capacity is expected to continue to grow as of January 2, 2023 with all property types expecting moderate growth. One goal of the city council is to preserve the current housing stock and promote housing growth. As mentioned above housing values have increased this past year which has added to the tax capacity. One factor impacting the tax capacity is the Market Value Homestead Credit which removes a portion of homeowner’s values from the tax rolls. This credit is reduced as the value of a home increases until it is phased out entirely at about a home value of $414,000. Other property classes primarily commercial have increased slightly which has mitigated the overall decrease in market values. 37 CITY OF HOPKINS 2022 Property Taxes by Taxing Districts The City’s levy is allocated against the tax base along with the levies for the school district, county and miscellaneous government entities. The median value home in Hopkins is valued at $315,000 and is projected to pay $4,800 in property taxes in 2021 (based on preliminary levies passed in September). The chart to the right shows the components of City of Hopkins taxes by taxing district. City Property Tax Levy Shown to the left is the annual cost of CITY taxes on a home valued at $225,000 in each year and based on the City’s median value in each year, called change in value. The Cities median value home has increased from $191,000 in 2012 to $291,000 in 2020. Taxes for 2012, 2013 and 2014 had small increases and 2015 saw the implementation of the Financial Management Plan (FMP) which provided new debt levies for the Pavilion and Art Center as we work to get these funds into a more stable financial position. The 2022 tax levy provides for the continuation of outstanding customer service by City workers, exceptional police and fire protection and helps maintain a vibrant, authentic downtown. This residential property owner in Hopkins will experience a $179 increase in City property taxes in 2022. The total City taxes on a median valued home would be $2,002 in 2022 as compared to $1,823 in 2021. 38 CITY OF HOPKINS Shown below is a summary of annual costs an average homeowner would expect to pay living in Hopkins. Water and sewer rates were increased for 2022 as based on the City’s Utility Rate Plan and continued capital costs. 2022 will be the sixth year the City used a tiered rate structure. Refuse rates are analyzed each year and if necessary are only increased every couple of years. There was a 4.4% increase in refuse or recycling rates for 2022. The storm sewer rate is not expected to increase in the near future. Hopkins utility rates continue to rank in the middle tier of the Minneapolis/St. Paul metropolitan area despite the rate increases. 2023 Annual Property Tax Cost (average home)Annual Service Cost City of Hopkins Average Annual Service Costs Council $ 11.39 on an Average Home. Administrative Services $ 109.82 2023 2022 Finance $ 51.63 City Property Taxes $ 2,189.00 $ 2,002.00 Legal $ 9.64 Unallocated $ 9.60 Water - Consumption Municipal Building $ 41.00 7,500 gallons a month Community Services $ 81.25 $3.42/$3.94/$4.52 Tiered Rates $ 393.36 Police $ 682.98 $3.20/$3.68/$4.22 Tiered Rates $ 367.56 Fire $ 157.40 Public Works $ 247.00 Sewer - Consumption Parks and Recreation $ 152.20 5,000 gallons a month Activity Center $ 40.06 $7.58/ 1,000 gallons $ 454.80 Planning and Community Development $ 31.58 $7.08/ 1,000 gallons $ 424.80 Capital $ 0.00 Equipment Replacement $ 29.16 Refuse Collection $ 274.20 $ 274.20 Arts Center $ 40.56 Organics Recycling $ 69.00 $ 66.00 Pavilion $ 39.66 Storm Sewer $ 60.00 $ 60.00 Debt $ 454.07 Franchise Fees $ 84.00 $ 84.00 Annual Cost for City Services $ 2,189.00 Total $ 3,524.36 $ 3,278.56 City Levy – By Purpose 2023 2022 General Fund $ 13,935,781 $ 13,219,739 5.42% increase Capital Levy -50,000 100.00% decrease Arts Center 347,697 339,317 2.47% increase Pavilion Fund 340,000 418,000 -18.66% decrease Equipment Replacement 250,000 - 100.00% increase Permanent Improvement -110,000 100.00% decrease Debt 3,892,746 4,003,044 -2.76% decrease Total Levy $ 18,766,224 $ 18,140,100 3.45% increase In 2022 the City continued its property tax levy for the purpose of funding the debt for the residential street improvements, Arts Center, Pavilion and Equipment Purchases. In 2023 levy limits were once again eliminated and remain off for 2023. A city tax rate of 62.930% result in payments of $2,189 annually or approximately $182 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 39 CITY OF HOPKINS Net annual property tax costs for program budgets The City’s overall net levy increase is 3.45%. The general fund levy increased in 2023 by 5.42% or $716,042. The debt levy was decreased due to utilizing franchise fees to make payments on debt associated with park projects. The debt levy decrease was 2.76% or $110,298. The capital levy was eliminated for for 2023. The Arts Center levy was increased by 2.47% to $8,380. The City reinstated the equipment replacement levy for the purchases of vehicles and equipment. The total levy increase for 2023 is $716,042 or 3.45%. The City’s tax rate will decrease by 2.496% from 65.426% to 62.930%. City Council and Management Staff celebrating the grand re-opening of City Hall following the 2019 renovation and remodel to better suit staff and provide enhanced customer service to our residents and business owners. 40 CITY OF HOPKINS PRINCIPAL TAXPAYERS Percentage of Total Tax Taxpayer Type of Business Tax Capacity Capacity BOF II Minnesota Excelsior Crossing Commerical 1,859,170 5.98% Piedmont 9320 Excelsior LLC Commerical 942,430 3.03% Doran 810 Apartments Apartments 741,513 2.39% Hopkins Distribution Co LLC Industrial 559,250 1.80% Individual Apartments 527,375 1.70% Southwest Real Estate, Inc.Apartments 366,843 1.18% Greenfield Apartments LP Apartments 612,538 1.97% Duke Realty Corporation Industrial 302,830 0.97% TKG-Storagemart Partnership Industrial 301,450 0.97% Super Valu Inc.Industrial 297,490 0.96% City's Total Tax Capacity 31,079,760 Shown above are the main taxpayers in the City of Hopkins and their percentage of total tax capacity. The largest taxpayer comprises 5.98% of total tax capacity and the next largest comprises 3.03%. The city has a diverse and stable tax base, which provides the city with assurance that tax revenues will remain stable against the loss of a significat taxpayer. PRINCIPAL EMPLOYERS 1 Percentage of Total Taxpayer Type of Business Employees Employment ISD 270 (Hopkins Public Schools)Elementary and Secondary School 1,550 8.564% UNFI Whole food distributor and warehouse 1,200 6.630% Cargill Agricultural products 1,173 6.481% Thermotech Plastic mold manufacturer 400 2.210% US Post Office Post Office 314 1.735% Oak Ridge Country Club County/Golf Club 185 1.022% Augustana Chapel View Nursing home 185 1.022% US Bank Financial Institution 185 1.022% City of Hopkins Municipal Government 154 0.851% Walser Auto Group Automobile dealer 100 0.553% Major employers in Hopkins include ISD 270 (Hopkins Public School District) UNFI a wholesale food distributor, and Cargill, an international producer and market of food, agricultural and industrial products. While these three organizations employ over 20% of the workforce in Hopkins, the City has a diverse group of employers with long-term presence in the City. 41 CITY OF HOPKINS Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. Estimated YE 2022 Fund Balance/% Change $ Change Reason for Working Ending in Fund in Fund Greater than Fund Name Capital*Revenues Expenditures Balance Balance Balance 10% Variance Major Funds General Fund $ 9,309,077 $ 17,188,440 $ 17,188,440 $ 9,309,077 0.00% - Economic 4,532,512 571,531 519,236 $ 4,584,807 1.15% 52,295 Development Special Revenue Fund Art Center (412,838) 1,164,132 1,104,132 $ (352,838)-14.53% 60,000 The Arts Center has focued on eliminating its deficity position. Each year the fund budgets for a $60,000 increase. Permanent 1,072,137 4,479,102 3,980,00 0 $ 1,571,239 46.55% 499,102 The fund will issue bonds in 2023 to fund 2023/2024 projects. Fund balance will decrease in 2024. Improvement Revolving Fund Water Enterprise 1,760,262 2,513,000 2,770,115 $ 1,503,147 -14.61%(257,115)The fund will rely on rate increases and existing balances for operational expenditures in 2023. Fund * Sewer Enterprise 1,559,844 3,460,000 3,449,216 $ 1,570,628 0.69% 10,784 Fund * Storm Sewer 2,506,473 810,332 786,034 $ 2,530,771 0.97% 24,298 Storm sewer rates have not been increased for multiple years because of growing balance. Enterprise Fund * Pavilion * 26,135 819,000 798,175 $ 46,960 79.68% 20,825 The Pavilion Fund is projectted to have a small dollar change in its fund balance in 2023. The general fund balance is preliminary and unaudited. The 2023 budget was adopted based on projected cost of living increases in settled union contracts and expected step movements. The general fund is above its fund balance goal of 42% of expenditures and is at 54% of expenditures. Staff continues to work to address how to manage the financial position so that we maintain our fund balance goal. This may involve new or revised revenue options, expenditure adjustments or a combination of all these options. The Economic Development Fund’s 2022 tax revenue collections were over budget as excess tax increment revenues were received. These are revenues over and above what is required in the tax increment plans and therefore are reported in the Economic Development fund to be used for future development. The Economic Development fund provides the funding to assist in development efforts in Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is an economic development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The fund plans to reduce approximately $50,000 to fund balance while still being able to provide funding for future development incentives. 42 CITY OF HOPKINS The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid-1990’s. The Art Center has long-term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives supporting transfers from the Communication and Economic Development funds. In 2016 staffing was restructured to minimize expenses and is continually evaluated to ensure budget goals are met while meeting the needs of the users. The Arts Center has successfully revamped its concert programming to appeal to a wider audience, the 2018 and 2019 concert series were both financial successes. The Arts Center has also benefited from Coronavirus Aid, Relief, and Economic Security Act and American Rescue Plan Act grant funding.The Arts Center is still on target to meet financial goals. The Art Center funding issues will be addressed by a $60,000 annual tax levy to pay back the outstanding deficit owed to the general fund.. It is anticipated the negative fund balance will be eliminated in 2029. The Permanent Improvement Revolving Fund will increase its fund balance in 2022. Bonds are issued to fund street projects and all expenditures are included in the fund. Increases and decreases in the fund are primarily timing difference between bond issuances and construction costs. The Water Enterprise Fund’s working capital is expected to decrease slightly in 2023. Rates were increased by 7%. A water rate study was first implemented in 2016 to address the growing capital and replacement costs in the fund. The fund will continue to see incremental increases to rates each year. The Sewer Enterprise Fund’s working capital is expected to increase slightly in 2023. Rates were increase by 7%. A sewer rate study was first implemented in 2016 to address the growing capital and replacement costs in the fund, however fees paid to the Metropolitan Council represent over half of the costs in the sewer budget. Sewer charges paid to the Metropolitan Council will increase by 10.2% in 2023 The Storm Sewer Enterprise Fund’s working capital will increase in 2023 as fees continue to exceed expenses. The Storm Sewer Fund is adequately funded for projected operations and infrastructure improvements and no rate increased are planned for the near future. The Pavilion Ice Arena will show a net decrease in 2022. The pavilion was able to benefit from American Rescue Plan Act funding to eliminate a negative cash position Pavilion staff continues to actively market the facility to various groups to increase off season rental income. These efforts are paying off as an underutilized portion of the facility is being leased to the Hopkins School District. The Artery is a bike, pedestrian and vehicle connection and community space connecting a future light rail station with historic downtown. 43 CITY OF HOPKINS Non-Major Funds Estimated YE 2022 Fund Balance/ % Change $ Change Reason for Working Ending in Fund in Fund Greater than Fund Name Capital*Revenues Expenditures Balance Balance Balance 10% Variance Non-Major Funds Special Revenue Funds Chemical - 65,000 65,000 - -% - Assessment Parking (10,054) 143,250 158,610 (25,414)152.78%(15,360)COVID Pandemic altered the need for parking permits. Will continue to evaluate proper funding sources. Communications 215,156 233,000 293,596 154,560 -28.16%(60,596)Fund is utilizing available balance for operating costs and evaluating funding sources. HREI 10,067 6,000 6,000 10,067 -% - Depot Coffee (215,156) 248,224 263,224 (230,156)6.97%(15,000) House Tax Increment (62,969) 5,606,250 6,428,352 (885,071)1305.57%(822,102)Budgeted amounts used Funds to pay pay-as-you go and (aggregate)other TIF notes. Actual expenditures reflect amounts available in 2023. Debt Service 7,554,630 7,096,537 7,598,497 7,052,670 -6.64%(501,960) Funds (aggregate) Enterprise Refuse * 1,041,218 1,271,200 1,251,809 1,060,609 1.86% 19,391 The Chemical Assessment fund is part of the State Chemical Assessment Team program where seven teams are placed around the state to respond to hazardous waste calls. Hopkins has one of the teams that is supported by the Fire Department and fully funded by the state. The expenditures are reimbursed in full by the state. The Parking fund, fund balance is projected to decrease in 2023. The parking fund’s primary revenue source is parking permits for nearby office buildings. The fund has seen a significant decrease due to the COVID-19 Pandemic and the prevalence of employees working from home. The city is evaluating the future funding sources needed to maintain the parking lots and cover operations. The Communication fund will continue to support the advertising and promotion of the Art Center by transferring $50,000 to the Arts Center. The council and staff continue to work at relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals. The Depot Coffee House is a chemical free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project is being supported by the General Fund with a $20,000 transfer as well as the Hopkins-Minnetonka Joint Recreation program ($20,000), Three Rivers Park District ($20,000) and Hopkins School District ($50,000). The coffee shop portion of the Youth Center has historically been a successful venture of the Depot and able to provide funding for the youth project. 44 CITY OF HOPKINS The coffee shop has been unable to be profitable in 2017-2019 due nearby construction projects and 2020-2022 due to the COVID-19 pandemic. The facility has eliminated positions, implemented price increases and reduced hours during less profitable times. In conjunction with the coffee business we offer rental of the facility when not used by the youth and we anticipate increased revenues from that source that will supplement the budget. With the changes made we expect that the coffee shop will continue to provide support for the youth programming and provide adequate funds for cash flow. Tax Increment fund balance may be used to retire tax increment debt early. Currently most tax increment funds meet their combined fund balance goals. Debt Service fund balance may be used to retire general obligation debt. All debt service funds meet their debt service needs. The Refuse Enterprise Fund has several programs that are subsidized by the refuse rates. The City has explored charging separate fees for these services but has met with resistance from the public. Staff continues to explore options for having these programs generate at least some revenue. Recycling rates were increased for 2023. Working capital continues to be adequate for this operation. Debt Overview The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor’s’ AA+ debt ratings. In January 2014 the city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA to AA+. This rating has been upheld for each subsequent bond issuance. Standard and Poor’s stated that this is based on the city’s rated the City as having very strong economy, very strong management, very strong budgetary flexibility and very strong liquidity. The City’s total outstanding debt on December 31, 202, was $82,020,000. The City’s per capita debt at December 31, 2021 is $4,298. The total debt principal and interest due in 2023 is $9,605,798 of which $3,892,746 is raised through direct tax levy. The remaining principal and interest is paid with refunding bonds, direct fees, utility fees, tax increments, and special assessments. As depicted in the graph on the following page debt service requirements continue to decline steadily throughout the remaining terms of the bonds. The requirements drop to $2,924,965 in 2036 and to $901,475 in 2037 before the final issue matures in 2039. The ability to retire 83% of the City’s debt in the next ten years is a major strength. The City is planning on issuing, GO bonds for residential street project and utility improvements in 2023. The actual amount to be bonded is estimated at $7,265,000 and will include as revenue sources a tax levy, utility revenues, and special assessments. Budget impact of the new debt has been factored into the utility funds budgets and the tax levy portion has been factored into the long-range Financial Management Plan. Part of the Financial Management Plan is to minimize tax increases to the taxpayers. Debt that is needed for future projects is part of that plan. The City has maintained an AA+ bond rating since 2014. 45 Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $2,734,042,000 in 2023. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $ 8 2 , 0 2 1 , 2 6 0 ; outstanding debt being paid solely from taxes is $21,050,000 or 26% of total debt limit allowed. CITY OF HOPKINS The graph below illustrates the retirement of debt (principal and interest) in years 2022 through 2037. OUTSTANDING DEBT AND PURPOSE 2022A GO Bonds Street Improvement & Equipment Certificates $ 7,265,000 2021A GO Bonds Street Improvement and Revenue $ 8,170,000 2020B GO Refunding Bonds Refunding of 2012B & 2013A Bonds $ 3,435,000 2020A GO Bonds Street Improvement and Revenue $ 8,585,000 2019B GO Refunding Bonds Refunding of 2009A and 2009B Bonds $ 1,060,000 2019A GO Improvement Bonds Street Improvements, City Hall & Utility Revenue $ 10,960,000 2018A GO Improvement Bonds Street Improvements $ 5,525,000 2018B GO Tax Abatement Bonds Parks and Water & Sewer Improvements $ 2,740,000 2017A GO Improvement Bonds Street Improvements $ 9,230,000 2017B GO Tax Abatement Bonds Parks and Water & Sewer Improvements $ 2,500,000 2016A GO Improvement Bonds Street Improvements $ 3,035,000 2016B GO Tax Abatement Parks and Municipal Parking Ramp $ 1,135,000 2016C GO Bonds Equipment Certificates & Water Revenue Bonds $ 1,510,000 2016D GO Tax Increment Revenue Refunding Bonds Refunding of 2009 HRA Tax Increment Revenue Bonds $ 2,320,000 2015A GO Street Reconstruction Bonds Street Improvements $ 2,615,000 2015B GO Tax Abatement Cottageville Park and Parking Lot Improvements $ 2,195,000 2015C GO Tax Increment Revenue Refunding Bonds Refunding of 2008 HRA Tax Increment Revenue Bonds $ 2,640,000 2015D GO Tax Increment Revenue Refunding Bonds Refunding of 2007 HRA Tax Increment Revenue Bonds $ 4,795,000 2014A GO Improvement Bonds Street Improvements $ 1,080,000 2014B GO Refunding Bonds Refunding of 2007A and 2007B Bonds $ 770,000 2012A GO Capital Improvement Plan Bonds Police Station Expansion and Remodeling $ 185,000 2010B GO Refunding Bonds County Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A) $ 270,000 Total Outstanding Debt December 31, 2021 $ 82,020,000 46 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS Tax Increment Bonds Special Assmnt Bonds Revenue Bonds G.O Bonds Principal Interest Principal Interest Principal Interest Principal Interest 2023 1,230,000 229,933 120,000 30,969 1,370,000 638,300 4,455,000 1,531,596 2024 1,090,000 201,013 125,000 27,294 1,540,000 557,118 4,050,000 1,362,300 2025 1,295,000 171,644 130,000 23,469 1,590,000 490,394 4,195,000 1,218,325 2026 1,350,000 139,844 135,000 19,494 1,520,000 436,719 4,325,000 1,067,346 2027 1,410,000 107,450 135,000 15,444 1,580,000 385,994 4,065,000 920,354 2028 1,470,000 72,744 140,000 11,319 1,630,000 334,694 4,210,000 781,941 2029 1,540,000 35,031 145,000 6,953 1,580,000 284,017 4,015,000 647,159 2030 555,000 7,631 150,000 2,344 1,500,000 236,118 4,010,000 512,678 2031 - - - - 1,545,000 194,520 4,090,000 387,803 2032 - - - - 1,500,000 158,254 3,890,000 276,471 2033 - - - - 1,530,000 123,049 3,380,000 175,790 2034 - - - - 1,440,000 88,633 2,200,000 98,513 2035 - - - - 1,205,000 59,101 1,740,000 45,583 2036 - - - - 1,175,000 33,550 795,000 19,940 2037 345,000 15,825 85,000 3,975 $ 355,000 $ 5,325 $ 90,000 $ 1,350 $ 9,940,000 $ 965,290 $ 1,080,000 $ 137,286 $ 21,405,000 $ 4,041,611 $ 49,595,000 $ 9,051,124 Total Principal Interest 2023 7,175,000 2,430,798 2024 6,805,000 2,147,725 2025 7,210,000 1,903,832 2026 7,330,000 1,663,403 2027 7,190,000 1,429,242 2028 7,450,000 1,200,698 2029 7,280,000 973,160 2030 6,215,000 758,771 2031 5,635,000 582,323 2032 5,390,000 434,725 2033 4,910,000 298,839 2034 3,640,000 187,146 2035 2,945,000 104,684 2036 1,970,000 53,490 2037 430,000 19,800 2038 445,000 6,675 $ 82,020,000 $ 14,195,311 An example of a recently completed street reconstruction project. 47 CITY OF HOPKINS The following is a schedule of the City’s debt by major and non-major funds. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. Enterprise Fund debt consists of water, sewer, storm sewer debt and Pavilion. Water, sewer, storm sewer enterprise fund debt are major funds, the Pavilion is a non-major fund. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Non-Major Funds - Aggregate Total - All Funds Debt Service Bonds Total Debt Service Fund Principal Interest Principal Interest Principal Interest 2023 7,175,000 7,175,000 5,805,000 1,792,498 5,805,000 1,792,498 2024 6,805,000 6,805,000 5,265,000 1,590,607 5,265,000 1,590,607 2025 7,210,000 7,210,000 5,620,000 1,413,438 5,620,000 1,413,438 2026 7,330,000 7,330,000 5,810,000 1,226,684 5,810,000 1,226,684 2027 7,190,000 7,190,000 5,610,000 1,043,248 5,610,000 1,043,248 2028 7,450,000 7,450,000 5,820,000 866,004 5,820,000 866,004 2029 7,280,000 7,280,000 5,700,000 689,143 5,700,000 689,143 2030 6,215,000 6,215,000 4,715,000 522,653 4,715,000 522,653 2031 5,635,000 5,635,000 4,090,000 387,803 4,090,000 387,803 2032 5,390,000 5,390,000 3,890,000 276,471 3,890,000 276,471 2033 4,910,000 4,910,000 3,380,000 175,790 3,380,000 175,790 2034 3,640,000 3,640,000 2,200,000 98,513 2,200,000 98,513 2035 2,945,000 2,945,000 1,740,000 45,583 1,740,000 45,583 2036 1,970,000 1,970,000 795,000 19,940 795,000 19,940 2037 430,000 430,000 85,000 3,975 85,000 3,975 2038 445,000 445,000 90,000 1,350 90,000 1,350 $ 82,020,000 $ 82,020,000 $ 60,615,000 $ 10,153,700 $ 60,615,000 $ 10,153,700 Major Enterprise Fund Bonds Water Fund Bonds Sewer Fund Bonds Storm Sewer Fund Bonds Pavilion Fund Bonds Total Enterprise Funds Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 485,450 324,595 377,540 142,519 312,010 91,911 195,000 79,275 1,370,000 638,300 699,600 271,348 398,170 128,076 242,230 84,345 200,000 73,350 1,540,000 557,119 719,050 241,531 413,550 109,047 252,400 72,541 205,000 67,275 1,590,000 490,394 692,500 216,737 354,640 94,942 262,860 63,990 210,000 61,050 1,520,000 436,719 720,950 193,021 369,970 82,688 274,080 55,610 215,000 54,675 1,580,000 385,994 743,850 169,131 379,450 70,317 281,700 47,171 225,000 48,075 1,630,000 334,694 715,200 145,692 368,330 58,115 266,470 38,961 230,000 41,250 1,580,000 284,018 664,550 123,548 350,710 46,688 244,740 31,682 240,000 34,200 1,500,000 236,118 685,700 103,857 362,940 37,463 251,360 26,275 245,000 26,925 1,545,000 194,520 624,550 87,256 370,550 29,626 254,900 21,872 250,000 19,500 1,500,000 158,254 637,450 72,219 374,270 21,639 258,280 17,341 260,000 11,850 1,530,000 123,049 629,450 57,066 285,940 14,887 259,610 12,705 265,000 3,975 1,440,000 88,633 647,750 41,763 292,710 9,361 264,540 7,977 - 1,205,000 59,101 624,050 26,542 281,480 3,904 269,470 3,104 - - 1,175,000 33,550 313,950 14,401 20,700 950 10,350 475 - - 345,000 15,826 323,050 4,846 21,300 320 10,650 160 - - 355,000 5,326 $ 9,927,100 $ 2,093,553 $ 5,022,250 $ 850,542 $ 3,715,650 $ 576,120 $ 2,740,000 $ 521,400 $ 21,405,000 $ 4,041,615 48 CITY OF HOPKINS Through the visioning process the City has discovered that there are many community needs that the City of Hopkins must meet. The future debt capacity will allow the City to issue debt to provide for our community’s needs and desires while keeping property taxes reasonable. 49 CITY OF HOPKINS CAPITAL EXPENDITURES Capital Improvement Plan The Capital Improvement Plan (CIP) is a five-year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. The complete CIP is posted on the city’s website and includes details of each project, the funding sources and a city map showing the street projects for the next five years color coded by project year. 2023 Capital Improvement Projects Building Improvements The Hopkins Center for the Arts built in 1997 has been upgrading and enhancing the facility that is over 20 years old. The facility has two projects planned for 2023. The projects are to replace the security access throughout the entire building and to update the outside signage/lighting. The 2023 projects will continue to enhance the facility and be a noticeable improvement for all patrons during their visit. The Activity Center, a facility for senior programming, has no projects scheduled in 2023 Hopkins City Hall was renovated in 2019. The project included lobby replacement, council chamber equipment upgrade, city hall roof, city hall carpet and window replacement and cost approximately $4.8 million. There are no projects scheduled in 2023. The Pavilion Ice Arena built in 1990 completed a $5.7 million renovation in 2018. The pavilion now has a environmental friendly refrigeration plan, expanded locker rooms, shower rooms, expanded lobby and floor improvements. There is one project scheduled in 2023, the replacement of the indoor turf system. The Fire Station was renovated in 2003. There is one project scheduled in 2022. There is one project schedule in 2023, the installation of an alerting system. Parks – Shady Oak Beach, a facility shared with the City of Minnetonka will get beach improvements. The City of Hopkin’s share of project cost is 33%. Pedestrian and Bike Trail Improvements – The City recently adopted a plan to increase pedestrian and bicycle access and safety. As part of that plan a number of bike lanes will be painted along with constructing trails and sidewalks. There are no operational or budgetary savings from this project but is done as the City’s commitment to healthy living for Hopkins area residents. Street & Pavement Management – A funding and implementation plan for repair and maintenance of Hopkins roadways exists. Needs are identified and funded through State Aids, special assessments, utilities, tax increments and annual levies. This program identifies the most opportune time to repair streets. In 2022 the City anticipates spending approximately $7,228,000 on street improvements that also include water, sewer and storm sewer infrastructure improvements. Projects scheduled for 2023 include West Central Avenues street reconstruction project, pedestrian and bicycle access improvements, along with street overlay upgrades. Also scheduled are street sign and street lighting replacements. A proactive pavement management and infrastructure improvement program aids in keeping public works maintenance costs to a reasonable level and as a result of the city’s program, maintenance costs have remained relatively stable over the last five years. Planned street reconstruction costs will annually save the city an estimated $25,000 in sealcoating and crack seal expenses. 50 CITY OF HOPKINS Utilities – Included in the CIP for 2023 is sewer lining, annual storm drainage maintenance in the form of concrete alley repairs, along with upgrade of water, sewer and storm sewer lines done in conjunction with residential street improvements. Operational impacts are reduced maintenance costs within the utility funds estimated at $5,000-10,000 annually. CAPITAL IMPROVEMENT PROJECTS FOR 2023 Project Title Investment Project Description Comm Svcs - Arts Center $ 25,000 Arts Center - Outdoor Signage/Lighting Comm Svcs - Arts Center $ 10,000 Arts Center - Key Card Exterior & Interior Access Pavilion $ 120,000 Pavilion - Indoor Turf System Replacement Public Works: Streets/Traffic $ 190,000 City Street Lighting Upgrades Public Works: Streets/Traffic $ 100,000 Central Business District Lighting Upgrades Public Works: Streets/Traffic $ 20,000 Street Sign Management Public Works: Streets/Traffic $ 25,000 Pedestrian & Bicycle Access Improvements Public Works: Streets/Traffic $ 6,493,000 Residential Street Improvements and Utilities Public Works: Streets/Traffic $ 425,000 Street Rehabilitation Improvements Public Works: Utilities $ 26,000 Storm Drainage System Maintenance - Alley Repairs Public Works: Utilities $ 55,000 Sewer Lining Recreation $ 15,000 Shady Oak Beach Improvements TOTAL $ 7,504,000 The projects described above and on the previous page are planned for 2023. The complete Capital Improvement Plan (CIP) is five years. Both of the CIP and Equipment Replacement Plan (ERP) described on the following page assist the City with budgeting. 51 CITY OF HOPKINS Equipment Replacement Plan 2023 Equipment Replacement In addition to the CIP, the City also completes an Equipment Replacement Plan (ERP). The ERP is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $1.4 million. Revenues for the ERP are derived from tax levy and charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period.The following items are in the 2023-2027 ERP and have been approved for purchase in 2023. Project Title Investment Project Description Technology Upgrades $ 36,465 Computers Technology Upgrades $ 42,000 IT - Windows 10 Enterprise Upgrade Technology Upgrades $ 10,000 IT - Laptops for Mobile Computer Lab Technology Upgrades $ 33,000 IT - Patching Automation Software Technology Upgrades $ 44,000 IT - Office 365 Technology Upgrades $ 72,120 Backup Server Technology Upgrades $ 60,000 Network Infrastructure Upgrade - Fiber Technology Upgrades $ 26,250 PD - Network Server Technology Upgrades $ 89,600 Telephone System Technology Upgrades $ 26,250 CH - Network Server Fire $ 100,000 Fire - Station Alerting System Fire $ 18,000 Fire - Lucus Device Fire $ 38,000 Extrication Tool Fire $ 10,609 Outfit Duty Chief Leased Vehicle Fire $ 35,740 Fire/Duty Chief & Utility Leased Vehicle Police $ 290,000 Portable Radios Police $ 70,000 Administrative Vehicles Police $ 25,000 Police Equipment Police $ 18,577 Protestor Management Police $ 200,000 Records Management System Police $ 140,000 Taser Replacement Police $ 81,160 Tactical Vests & Helmets (SWAT) Police $ 16,000 Drug Task Force Vehicle Police $ 39,000 Police Administrative Vehicles Police $ 120,000 Market Patrol Vehicles Police $ 22,000 Building Video Server Public Works: Parks/Forestry $ 35,400 1/2 Ton Pickup Truck Public Works: Parks/Forestry $ 231,600 Log Truck Public Works: Streets/Traffic $ 35,000 Streets Supervisor Vehicle Public Works: Streets/Traffic $ 28,900 1/2 Ton Pickup Truck with Plow Water/Sewer $ 35,000 Utilities Supervisor Vehicle TOTAL $ 2,029,671 52 CITY OF HOPKINS 2023 Other Budgeted Capital Expenditures Along with the Capital Improvement and Equipment Replacement Plans the city has the following capital items budgeted in the operating budgets of the General Fund. The first year an item is requested it must be funded within the department making the request. Once the item has been funded it will be placed in the ERP for future replacement. All construction related capital items are always placed in the CIP regardless of the funding source. Items with a value of $5,000 or greater are defined as capital expenditures within the General Fund. Items with a value of $5,000 or more will be placed in the ERP for future replacement once funded by the department making the request. The exception is capital items in the Chemical Assessment Team Special Revenue Fund, which is fully funded by State of Minnesota HazMat grant dollars. There are no capital items in the 2023 General Fund. Total budgeted capital items from all funding sources totals $9,533,671 for 2023. Items in the City’s Equipment Replacement Plan include a jet vactor used by the sewer department and a telesquirt fire truck. 53 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax $ 13,305,239 $ 14,020,781 $ 14,665,691 $ 15,337,147 $ 16,036,219 $ 16,764,019 Intergovernmental Revenues 1,502,066 1,630,794 1,647,102 1,663,573 1,680,209 1,697,011 License, Permits and Fines 781,515 870,215 878,917 887,706 896,583 905,549 Charges for Current Services 258,550 326,900 339,976 353,575 367,718 382,427 Other Revenue 30,050 43,550 45,292 47,104 48,988 50,948 Franchise Fee 296,200 296,200 296,200 296,200 296,200 296,200 Total Reveues 16,173,620 17,188,440 17,873,178 18,585,305 19,325,917 20,096,154 Current Expenses Salaries and Employee Benefits 12,140,696 12,717,918 13,226,635 13,755,700 14,305,928 14,878,165 Materials, Supplies and Services 3,962,924 4,400,522 4,576,543 4,759,605 4,949,989 5,147,989 Capital Outlay 50,000 50,000 50,000 50,000 50,000 50,000 Transfer Out 20,000 20,000 20,000 20,000 20,000 20,000 Total Expenditures 16,173,620 17,188,440 17,873,178 18,585,305 19,325,917 20,096,154 Change in Fund Balance - - - - - - Fund Balance $ 9,309,077 $ 9,309,077 $ 9,309,077 $ 9,309,077 $ 9,309,077 $ 9,309,077 General Fund Property tax revenue is the amount needed to fill the gap between budgeted revenues and appropriations. The average increase in levy for the general fund for years 2023 through 2027 is projected to be 4.89%, however City Council will continue to review these projections throughout the year. This projection reflects an appropriation increase of 5.38% for 2023 and an average increase for years 2023-2027 of 4.73%. The actual amount for any particular year may be reduced through appropriation cuts or new revenue sources. The city’s reliance on support from the state has significantly decreased over the years as the state faced its budget challenges and reduced local support. At one time taxes were less than 70% of total revenues. They now comprise 82%. The city now uses a conservative estimate for state support while budgeting. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. Due to recent economic development Hopkins saw taxable market value increase by 3.14% in the current tax year. The city continues to work with developers on several redevelopment projects that will contribute to the increase in the tax base despite what current market trends indicate. Therefore Hopkins tax base will most likely see an overall increase in the next few years. Franchise fees – The City implemented an electric and gas utility franchise fee in 2004 to help offset the amount of tax levy needed to fund general operations. The franchise fee has an optional sunset clause after two years but has been renewed for two additional years in 2007, 2009, 2011 and for five years in 2013 and 2018. The franchise fee is set to expire December 31, 2023 and staff most likely will recommend its renewal as this source of income has become an important component of the budget. 54 CITY OF HOPKINS Intergovernmental revenue received by the City include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. The City of Hopkins receives less than 10% of its budget from state grants and programs. The revenue we do receive is derived from fees on services to the public – police & fire aid is from fees on insurance policies purchased by individuals and companies, municipal state aid is derived from gas tax. Both these sources remain stable. The State of Minnesota will also provide Hopkins with about $926,000 in Local Government Aid. This funding source was eliminated in by Minnesota from 2004 to 2013, it was reinstated in 2014 and saw modest increase between 2022 and 2023. Licenses, permits and fines include building permits are dependent on new construction and remodeling projects. Based on projected new construction projects, historical information and economic conditions revenues are budgeted to increase substantially from the 2022 to 2023 budget with revenues continuing to show small increases. Fine revenue continues to be stable. Unless a developer’s commercial project has funding it is the City’s practice to not budget for those amounts. Various programs throughout the City generate charges for services and a significant portion of this line item is plan review, housing inspection fees and vacant property registrations. Charges are usually increased by an inflationary rate but due to timing of projected development and the resulting plan review fees we expect to see higher increases for the 2023 budget. Future projections are to forecast an increase of 4% annually. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $17,188,440 and an appropriation budget of the same. The increase in appropriations over 2022 is $1,014,820 or 6.27%. The budget was prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. In 2022, the general fund expenditure budget ws increased for cost of living increases, step increases for elibible employees, equipment charges and two new employees. The cost of one employee is paid for by increased inspections permits and plan review fees. The council attempts to balance maintaining the current level of services while meeting the needs of residents. An emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff implemented a long-rage financial management plan for 2014 that provides funding for future needs. The plan includes staffing, operational and capital needs and sets forth funding mechanism to meet those expenditures. This plan played a key role in developing the 2023 budget for all city funds. Staff also continues to explore ways to contain costs and develop new revenue sources so that we can maintain the quality of life Hopkins residents have come to expect. 55 CITY OF HOPKINS The chart above shows the 2023 approved budget and projected budgets from 2027 through 2027 The general fund tax levy rises in proportion to general fund expenditures. Currently Hopkins relies on its property taxes as its major source of revenue. In fact property taxes account for 82% of General Fund revenues. 56 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department 2020 2021 2022 2023 Budget Budget Budget Budget Budget $ Amount Change Change Council $ 97,630 $ 102,095 $ 104,699 $ 105,851 $ 1,152 1.10% Administrative Services 855,056 866,312 912,950 1,020,031 107,081 11.73% Finance 400,476 426,277 462,665 488,794 26,129 5.65% Legal 175,000 200,000 225,000 225,000 - 0.00% Municipal Building 398,472 390,560 380,901 380,832 (69) -0.02% Community Services 1,329,162 1,302,163 1,368,920 1,563,674 194,754 14.23% Police 5,977,172 6,242,455 6,417,544 6,958,766 541,222 8.43% Fire 1,483,100 1,566,528 1,616,824 1,633,390 16,566 1.02% Public Works 3,442,841 3,469,191 3,509,559 3,632,027 122,468 3.49% Recreation 783,082 748,136 761,863 793,185 31,322 4.11% Planning & Economic Dev. 222,370 233,000 204,784 170,842 (33,942) -16.57% Community Development 108,155 114,921 118,711 126,848 8,137 6.85% Unallocated 89,200 89,200 89,200 89,200 - 0.00% TOTAL $ 15,361,716 $ 15,750,838 $ 16,173,620 $ 17,188,440 $ 1,014,820 6.27% 2022 Mayor, Council & City Mangement Goal Setting Event 2022 57 CITY OF HOPKINS Budget Projections – Other Major Funds The City also prepares budget projections for its budgeted major funds which include the following: Special Revenue Funds – Economic Development, Arts Center Enterprise Funds – Water, Sewer, Storm Sewer Economic Development Fund Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax $ 491,302 $ 551,531 $ 573,592 $ 596,536 $ 620,397 $ 645,213 Intergovernmental Revenues - - - - - - Other Revenue 15,000 20,000 20,000 20,000 20,000 20,000 Total Reveues 506,302 571,531 593,592 616,536 640,397 665,213 Current Expenses Salaries and Employee Benefits 275,065 294,897 306,693 318,961 331,719 344,988 Materials, Supplies and Services 197,007 194,339 202,113 210,198 218,606 227,350 Transfer Out 30,000 30,000 30,000 30,000 30,000 30,000 Total Expenditures 502,072 519,236 538,806 559,159 580,325 602,338 Change in Fund Balance 4,230 52,295 54,786 57,377 60,072 62,875 Fund Balance $ 4,532,512 $ 4,584,807 $ 4,639,593 $ 4,696,970 $ 4,757,042 $ 4,819,917 The main source of revenue for the Economic Development Fund is a special development tax levy based on a percentage of the market value. Hopkins market value has increased each year since 2011 allowing Hopkins to increase this levy in each of those years. Funds are used for development efforts by the City and to provide assistance to developers. Intergovernmental revenues in the form of grants from the County or Metropolitan Council and are applied for when there are specific needs by a developer for site remediation in order to make a project viable. In the past the City has been successful at obtaining these grants on behalf of developers which has assisted in a number of recent projects which in turn adds to the tax base. New development located near the future Blake Road light rail transit station. 58 CITY OF HOPKINS Arts Center Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax $ 339,317 $ 347,697 $ 356,328 $ 365,218 $ 374,375 $ 383,806 Intergovernmental Revenues 32,000 32,000 32,320 32,643 32,969 33,299 Charges for Current Services 615,632 679,435 699,818 720,813 742,437 764,710 Other Revenue 20,509 25,000 25,000 25,000 25,000 25,000 Transfer In 80,000 80,000 80,000 80,000 80,000 80,000 Total Reveues 1,087,458 1,164,132 1,193,466 1,223,674 1,254,781 1,286,815 Current Expenses Salaries and Employee Benefits 460,847 512,678 533,185 554,512 576,692 599,760 Materials, Supplies and Services 463,983 429,019 446,180 464,027 482,588 501,892 Capital Outlay 102,628 162,435 154,101 145,135 135,501 125,163 Total Expenditures 1,027,458 1,104,132 1,133,466 1,163,674 1,194,781 1,226,815 Change in Fund Balance 60,000 60,000 60,000 60,000 60,000 60,000 Fund Balance $ (412,838) $ (352,838) $ (292,838) $ (232,838) $ (172,838) $ (112,838) The Hopkins Center for the Arts “Arts Center” was built in 1997 with funds from the City, the State of Minnesota as well as contributions from corporations, foundations, local civic organizations, businesses and individuals. The Arts Center is owned by the City of Hopkins and has a major tenant in Stages Theater Company (children’s theater) and Hopkins School District 270. While ticket sales and lease rent provide a significant income stream it has not always been sufficient to meet expenditures and as a result the fund has a large deficit. Over the last five years various changes in operations has resulted in some success at reducing the deficit, however it has not been sufficient to totally eliminate the negative position. As part of the City’s long-range financial management plan staff and council emphasized that the negative position must be eliminated. As a result the City implemented a tax levy for 2015 that will keep the fund from increasing the deficit. The City is considering many options to eliminate the deficit including donations, naming rights, tax levy support or transfers from other funds. In addition, Arts Center staff has been reorganized and additional efforts have been made to rent and lease the various available spaces to the extent possible. Arts staff has also been successful at obtaining grants for programming from the MN Arts Boards which help underwrite the cost of hiring performance artists. Expenditures are expected to increase 3.75% a year to keep up with inflation. In addition to operational expenditures the Arts Center due to its age has several capital needs over the next couple of years that add to its budget challenges. The Arts Center has a partner in their fund raising efforts through the Friends of the Hopkins Center for the Arts, a 501(c)3 nonprofit that raises funds to support arts programming at the Center, coordinates volunteer efforts and fosters public awareness of the Center. 59 CITY OF HOPKINS Water Fund Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Utility Charges $ 2,208,750 $ 2,365,000 $ 2,459,600 $ 2,557,984 $ 2,660,303 $ 2,766,715 Other Revenue 158,000 148,000 149,480 150,975 152,485 154,010 Total Reveues 2,366,750 2,513,000 2,609,080 2,708,959 2,812,788 2,920,725 Current Expenses Salaries and Employee Benefits 502,871 594,466 594,467 543,905 565,661 588,288 Materials, Supplies and Services 1,126,189 1,239,276 1,239,277 1,218,086 1,266,809 1,317,482 Depreciation 325,000 328,922 330,000 330,000 330,000 330,000 Debt Service Payments 87,578 207,832 210,000 210,000 210,000 210,000 Transfer Out 322,961 257,091 275,000 325,000 350,000 375,000 Total Expenditures 2,364,599 2,627,587 2,648,744 2,626,991 2,722,470 2,820,770 Net Income 2,151 (114,587)(39,664) 81,968 90,318 99,955 Water utility rates were increased by approximately 7.0% in 2023 to continue to cover capital and replacement costs. Operating costs are projected to increase by approximately 4.00% on average over the next 4 years. Budgeted transfers are for the water funds share of street improvement projects. Sewer Fund Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Utility Charges $ 3,198,750 $ 3,425,000 $ 3,562,000 $ 3,704,480 $ 3,852,659 $ 4,006,765 Other Revenue 15,000 35,000 35,000 35,000 35,000 35,000 Total Reveues 3,213,750 3,460,000 3,597,000 3,739,480 3,887,659 4,041,765 Current Expenses Salaries and Employee Benefits 254,443 287,835 299,348 311,322 323,775 336,726 Materials, Supplies and Services 2,197,810 2,377,303 2,472,395 2,571,291 2,674,143 2,781,109 Depreciation 350,000 340,288 360,000 380,000 400,000 425,000 Debt Service Payments 89,691 202,372 215,000 225,000 250,000 275,000 Transfer Out 260,394 190,166 190,166 190,166 190,166 190,166 Total Expenditures 3,152,338 3,397,964 3,536,909 3,677,779 3,838,084 4,008,001 Net Income 61,412 62,036 60,091 61,701 49,575 33,764 Sewer treatment costs to the Metropolitan Council, a regional sewer treatment system are 55% of the expenditures of the sewer fund. The Met Council charges municipalities a percentage of their annual budget based on individual cities water flow. This charge can fluctuate based on water used in Hopkins versus the entire region although our percentage has stayed constant the last few years. The variable factor is the Met Council budget. Sanitary sewer charges to customers were increased by 7.0% in 2022 to continue to pay for capital and replacement costs. Budgeted transfers are for the sewer funds share of street improvement projects. 60 CITY OF HOPKINS Storm Sewer Fund Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Utility Charges $ 779,332 $ 779,332 $ 779,332 $ 802,712 $ 826,793 $ 851,597 Other Revenue 13,000 31,000 31,000 31,000 31,000 31,000 Total Reveues 792,332 810,332 810,332 833,712 857,793 882,597 Current Expenses Salaries and Employee Benefits 65,949 67,136 69,821 72,614 75,519 78,540 Materials, Supplies and Services 79,677 81,227 84,476 87,855 91,369 95,024 Depreciation 300,804 319,498 320,000 330,000 340,000 350,000 Debt Service Payments 44,704 148,824 150,000 160,000 170,000 180,000 Transfer Out 188,588 176,837 176,837 176,837 176,837 176,837 Total Expenditures 679,722 793,522 801,134 827,306 853,725 880,401 Net Income 112,610 16,810 9,198 6,406 4,068 2,196 The storm sewer fund has not had to raise rates since 2009 due to its strong financial position. The projected budgeted includes rates increases of 3% beginning in 2025. Expenditures continue to be stable with no significant maintenance projects planned for 2023. Budgeted transfers are for the storm sewer funds share street improvement projects. Pavilion Fund Approved Projected 2022 2023 2024 2025 2026 2027 Budget Budget Budget Budget Budget Budget Current Revenues Property Tax $ 340,000 $ 340,000 $ 340,000 $ 340,000 $ 340,000 $ 340,000 Charges for Current Services 492,000 474,500 479,245 484,037 488,877 493,766 Other Revenue 4,500 4,500 4,500 4,500 4,500 4,500 Total Reveues 836,500 819,000 823,745 828,537 833,377 838,266 Current Expenses Salaries and Employee Benefits 342,237 359,064 373,427 388,364 403,899 420,055 Materials, Supplies and Services 170,361 164,836 171,429 178,286 185,417 192,834 Depreciation 480,000 477,786 477,786 477,786 477,786 477,786 Capital 8,000 - 25,000 25,000 25,000 25,000 Debt Service Payments 85,850 79,275 73,350 67,275 61,050 57,000 Total Expenditures 1,086,448 1,080,961 1,120,992 1,136,711 1,153,152 1,172,675 Net Income (249,948)(261,961)(297,247)(308,174)(319,775)(334,409) The Hopkins Pavilion is an arena used year-round for a multitude of activities including ice skating, broomball, soccer, lacrosse, inline skating, rugby and other community or private events. Charges for services are the largest revenue source and come primarily from ice rental. The facility was renovated in 2018 with funds from the City, local school district and a local youth hockey organization. The City’s property tax levy is being used to pay the debt service for its contribution. Operating costs are projected to increase by approximately 2.06% on average over the next 4 years. 61 CITY OF HOPKINS FUNCTION: UNALLOCATED Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 12,451,605 $ 12,792,890 $ 13,304,739 $ 14,020,781 5.38% Intergovernmental Revenue 1,630,855 853,667 880,066 925,794 5.2% Charges for Current Services -16 - - 0% Interest on Investments 7,779 -15,000 20,000 33.33% Franchise Fees 306,497 306,032 296,200 296,200 0% Other Revenues 2 36 250 250 0% 14,396,738 13,952,641 14,496,255 15,263,025 5.29% Expenditures Salaries and Wages $ 1,119 $ (3,646) $- $-0% Fringe Benefits 1,230 7,534 -- 0% Professional & Technical Services 130,000 2,066 -- 0% Operations 5,125 17,074 69,200 69,200 0% City Support Services 15,798 (8,122) - - 0% Supplies and Materials (2,941) - - - 0% Other Financing Uses 20,000 20,000 20,000 20,000 0% 170,331 34,906 89,200 89,200 0% Indirectly Funded Amount (14,226,407) (13,917,735) (14,407,055) (15,173,825) 5.32% 62 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Unallocated PROGRAM: Unallocated PROGRAM SUMMARY: The purpose of the unallocated program of the General Fund is to provide budget for unforeseen or unusual expenditures that may occur in a given year. The revenues recorded here are revenues that are not directly associated with another program within the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Monitor tax collections 2. Monitor franchise fee structure and set rates for 2024 3. Maximize investment earnings FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Property Taxes $ 12,451,605 $ 12,792,890 $ 13,304,739 $ 14,020,781 5.38% Intergovernmental Revenue 1,630,855 853,667 880,066 925,794 5.2% Charges for Current Services -16 - - 0% Interest on Investments 7,779 -15,000 20,000 33.33% Franchise Fees 306,497 306,032 296,200 296,200 0% Other Revenues 2 36 250 250 0% 14,396,738 13,952,641 14,496,255 15,263,025 5.29% Expenditures Salaries and Wages $ 1,119 $ (3,646) $- $-0% Fringe Benefits 1,230 7,534 -- 0% Professional & Technical Services 130,000 2,066 -- 0% Operations 5,125 17,074 69,200 69,200 0% City Support Services 15,798 (8,122) - - 0% Supplies and Materials (2,941) - - - 0% Other Financing Uses 20,000 20,000 20,000 20,000 0% 170,331 34,906 89,200 89,200 0% NET TAX AND GENERAL REVENUE SUPPORTED (14,226,407)(13,917,735)(14,407,055)(15,173,825)5.32% 63 CITY OF HOPKINS FUNCTION: CITY COUNCIL Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Expenditures Salaries and Wages $ 39,896 $ 39,747 $ 42,573 $ 43,424 2% Fringe Benefits 3,764 3,116 3,257 3,322 2% Professional & Technical Services 2,331 2,676 1,500 1,500 0% Operations 32,238 26,423 53,469 53,704 0.44% Supplies and Materials 3,537 3,820 3,900 3,900 0% 81,766 75,782 104,699 105,850 1.1% Indirectly Funded Amount 81,766 75,782 104,699 105,850 1.1% The City Council Department accounts for the expenses of the mayor and council. 64 FUND 101 – GENERAL FUND FUNCTION: Administration PROGRAM: Council Administration PROGRAM SUMMARY: The Council Administration program of the Council Department establishes city policies, goals and objectives. It approves the budget and monitors the activities of the City Manager and City Attorney. The council also appoints members to boards and commissions. The City Council holds regular meetings and work sessions, receives input from staff, citizens and other interested parties. The Council controls policy through changes in the City Code and Legislative Policies. They control spending through their review nd approval of the City budget and various contracts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: Work across all city departments and the community to implement the current Goals and Strategic Plan: (1) Preserve the Home Town Feel of Hopkins, (2) Urban Design: Do It Right, and (3) Take it to Them (community engagement) 1. Promote city marketing efforts 2. Publish 2022/23 City Annual Report 3. Safely host 2023 State of the City event FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 39,896 $ 39,747 $ 42,573 $ 43,424 2% Fringe Benefits 3,764 3,116 3,257 3,322 2% Professional & Technical Services 2,331 2,676 1,500 1,500 0% Operations 32,238 26,423 53,469 53,704 0.44% Supplies and Materials 3,537 3,820 3,900 3,900 0% 81,766 75,782 104,699 105,850 1.1% NET TAX AND GENERAL REVENUE SUPPORTED 81,766 75,782 104,699 105,850 1.1% PERSONNEL: Number of FTE Positions PERFORMANCE MEASURSES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Residents Represented 19,276 19,276 19,468 19,468 Number of Council Meetings/Worksessions 30 37 36 35 Estimated City Market Value (in billions) $ 2.345 $ 2.450 $ 2.425 $ 2.734 General Fund Budget overseen $ 15,361,716 $ 15,750,838 $ 16,173,620 $ 17,188,440 Total All Budgeted Funds $ 47,525,454 $ 44,540,511 $ 36,730,978 $ 42,850,012 65 CITY OF HOPKINS FUNCTION: ADMINISTRATIVE SERVICES Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Other Revenues $- $ 750 $- $-0% -750 - - 0% Expenditures Salaries and Wages $ 590,066 $ 647,381 $ 647,561 $ 682,793 5.44% Fringe Benefits 169,083 174,818 225,836 232,711 3.04% Professional & Technical Services 27,046 20,090 42,026 95,350 126.88% Utilities and Maintenance 29,652 19,578 18,336 19,817 8.08% Operations 127,999 132,862 169,675 179,625 5.86% City Support Services 2,976 3,240 3,572 3,789 6.08% Supplies and Materials 17,087 16,846 13,800 13,800 0% 963,909 1,014,815 1,120,806 1,227,885 9.55% Reimbursed Expenditures City Support Services $ (104,000) $ (148,844) $ (207,856) $ (207,856)0% (104,000)(148,844)(207,856)(207,856)0% Net Total Expenditures 859,909 865,971 912,950 1,020,029 11.73% Indirectly Funded Amount 859,909 865,221 912,950 1,020,029 11.73% The Administration Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services. 66 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Administration PROGRAM SUMMARY: The Administration program of the Administrative Services Department provides leadership and support to all city programs and operations. Administration controls and directs the City’s affairs. It responds to citizen concerns and participates in affiliated organizations. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Other Revenues $- $ 750 $- $-0% -750 - - 0% Expenditures Salaries and Wages $ 254,634 $ 295,828 $ 282,936 $ 295,563 4.46% Fringe Benefits 56,948 65,411 81,816 76,588 -6.39% Professional & Technical Services 8,521 2,362 10,100 13,400 32.67% Utilities and Maintenance 1,018 759 1,066 1,300 21.95% Operations 10,459 16,144 37,025 37,525 1.35% City Support Services (64,960)(64,869)(83,338)(83,253)-0.1% Supplies and Materials 4,964 10,325 8,500 8,500 0% 271,584 325,960 338,105 349,623 3.41% NET TAX AND GENERAL REVENUE SUPPORTED 271,584 325,210 338,105 349,623 3.41% PERSONNEL: Number of FTE Positions 1.55 2.05 2.77 2.77 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Encourage innovative, creative thinking and inform the City Council and community of new programs and activities. 2. Develop leadership team to ensure the city’s long term viability through an engaged and empowered workforce. 3. Continue to operate and enhance the employee engagement & wellness program. 4. Increase ways for community engagement. 5. Prepare a legislative agenda, monitor legislative issues, and lobby on issues affecting the City 67 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Personnel PROGRAM SUMMARY: Personnel provides human resource support for departments and employees. This includes coordination of staff recruitment, coordination of employee benefit programs and conducting employee relations’ activities for all City employees. Another aspect of this program is ensuring compliance with state, federal and local laws regarding employment. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 43,382 $ 78,500 $ 89,859 $ 96,912 7.85% Fringe Benefits 16,987 26,952 34,693 37,688 8.63% Professional & Technical Services 10,321 4,729 11,176 61,200 447.6% Utilities and Maintenance 853 806 1,570 1,300 -17.2% Operations 101 13,597 11,170 11,120 -0.45% City Support Services (15,636)(15,605)(25,858)(25,834)-0.09% Supplies and Materials 12,054 5,426 1,500 1,500 0% 68,062 114,405 124,110 183,886 48.16% NET TAX AND GENERAL REVENUE SUPPORTED 68,062 114,405 124,110 183,886 48.16% PERSONNEL: Number of FTE Positions 0.4 0.4 0.8 0.8 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Successfully negotiate union contracts beginning on 1/1/2024 2. Successfully engage new employees. 3. Assist the City Manager with staff development opportunities. PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Full-time Employees 114 115 115 116 Full-time Employees hired 3 8 11 8 68 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Wellness PROGRAM SUMMARY: The Wellness program of the Administrative Services Department provides support and activities to encourage overall general good health of city employees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: Goal 2, Strategy 3 – Healthy City Initiatives: 1. Continue to provide healthy guidance to employees. 2. Support the Employee Engagement & Wellness Committee 3. Provide wellness events and opportunities for employees FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Professional & Technical Services $- $ 500 $ 1,350 $ 1,350 0% Operations -- 300 300 0% Supplies and Materials -774 1,300 1,300 0% -1,274 2,950 2,950 0% NET TAX AND GENERAL REVENUE SUPPORTED -1,274 2,950 2,950 0% PERSONNEL: Number of FTE Positions 0 0 0 0 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Number of Employee Wellness/Education Events 1 4 4 4 69 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administrative Services PROGRAM: Information Technology PROGRAM SUMMARY: The Information Services program of the Administrative Services Department provides all network hardware and software support for the City. It also provides individual city employees with hardware and software support. The internal web site is designed and maintained through this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to provide assistance getting systems in place to allow employees to work from home 2. Continue to provide assistance getting systems in place to allow residents to easily access online information and communications 3. Work on developing IT financial forecast FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 292,050 $ 273,053 $ 274,766 $ 290,318 5.66% Fringe Benefits 95,148 82,455 109,327 118,435 8.33% Professional & Technical Services 8,204 12,499 19,400 19,400 0% Utilities and Maintenance 27,781 18,013 15,700 17,217 9.66% Operations 117,439 103,121 121,180 130,680 7.84% City Support Services (20,428)(65,130)(95,088)(94,980)-0.11% Supplies and Materials 69 321 2,500 2,500 0% 520,263 424,332 447,785 483,570 7.99% NET TAX AND GENERAL REVENUE SUPPORTED 520,263 424,332 447,785 483,570 7.99% PERSONNEL: Number of FTE Positions 3.1 3.1 3.1 3.1 70 CITY OF HOPKINS FUNCTION: FINANCE Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Charges for Current Services $ 8,379 $ 222,862 $ 7,500 $ 7,500 0% Other Revenues 338 97 1,000 1,000 0% 8,717 222,959 8,500 8,500 0% Expenditures Salaries and Wages $ 367,863 $ 334,692 $ 352,469 $ 379,960 7.8% Fringe Benefits 151,305 108,318 134,205 143,001 6.55% Professional & Technical Services 150,523 164,767 147,650 138,050 -6.5% Utilities and Maintenance 409 328 3,375 3,125 -7.41% Operations 10,260 13,683 20,550 21,900 6.57% City Support Services 2,112 2,306 2,368 2,511 6.04% Supplies and Materials 4,206 11,199 3,900 2,100 -46.15% 686,678 635,293 664,517 690,647 3.93% Reimbursed Expenditures City Support Services $ (211,059) $ (218,168) $ (201,852) $ (201,852)0% (211,059)(218,168)(201,852)(201,852)0% Net Total Expenditures 475,619 417,125 462,665 488,795 5.65% Indirectly Funded Amount 466,902 194,166 454,165 480,295 5.75% The Finance department consists of five programs. They are Debt Management, General Accouting, Payroll, Tax Increment Financing Administration and Utility Billing. In January 2014 the City was upgraded to a AA+ credit rating by Standard & Poor’s. A certificate recognizing this achievement was presented to the City by the City’s financial advisors. The AA+ rating was reaffirmed for each of the bond issues sold in 2021. 71 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Debt PROGRAM SUMMARY: The Debt program of the Finance Department issues, records and maintains debt for the City of Hopkins and the Hopkins Housing and Redevelopment Authority. Debt is issued in accordance with state statute and city charter. Debt is maintained at a manageable level for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Maintain the current bond rating of AA+ through conservative financial management and accurate reporting of financial and economic conditions of the city. 2. Project future debt needs and ability. 3. Prepare documents and work with financial advisors for 2023 bond issue. 4. Analyze possibilities of debt refunding(s). 5. Prepare annual debt reporting for county as required by state statutes FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 12,000 $ 12,549 $ 13,318 $ 14,207 6.68% Fringe Benefits 4,100 2,545 3,648 4,061 11.32% Professional & Technical Services 1,700 5,825 2,000 2,100 5% City Support Services (15,078)(17,875)(15,109)(15,106)-0.02% 2,722 3,044 3,857 5,262 36.43% NET TAX AND GENERAL REVENUE SUPPORTED 2,722 3,044 3,857 5,262 36.43% PERSONNEL: Number of FTE Positions 0.1 0.1 0.1 0.1 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Standard & Poors credit rating AA+AA+AA+AA+ Vendor checks issued 4,230 3,989 4,000 4,000 Receipts Processed 29,578 29,697 30,000 3,000 Utility accounts serviced 3,591 3,597 3,600 3,600 Date of audit opinion (target June 15)June 15 June 28 June 30 June 15 GFOA CAFR Award Yes Yes Yes Yes GFOA Budget Award Yes Yes Yes Yes 72 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance DEPARTMENT: Accounting PROGRAM SUMMARY: The Accounting program of the Finance Department provides financial management for the City and the Housing and Redevelopment Authority. It provides support services to other departments in the City through initiating fiscal plans, implementation and control of those plans, accounting and analysis of transactions. Accounting manages the city’s day-to-day accounting transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The program prepares monthly and quarterly financial statements and compiles the year-end comprehensive financial report. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 8,019 $ 222,652 $ 2,500 $ 2,500 0% Other Revenues 338 97 1,000 1,000 0% 8,357 222,749 3,500 3,500 0% Expenditures Salaries and Wages $ 190,193 $ 193,391 $ 204,115 $ 218,445 7.02% Fringe Benefits 71,403 54,892 65,833 72,839 10.64% Professional & Technical Services 62,114 65,588 55,000 55,000 0% Utilities and Maintenance 164 164 175 175 0% Operations 8,320 8,629 13,950 14,400 3.23% City Support Services (62,940)(62,847)(74,397)(74,326)-0.1% Supplies and Materials 4,154 10,670 3,200 1,500 -53.13% 273,408 270,487 267,876 288,033 7.52% NET TAX AND GENERAL REVENUE SUPPORTED 265,051 47,738 264,376 284,533 7.62% PERSONNEL: Number of FTE Positions 1.95 1.95 1.95 1.95 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Submit ACFR for the GFOA award program. 2. Provide accurate and timely quarterly financial reports. 3. Update the Financial Management Plan 4. Prepare 5-year Capital Improvement Plan. 5. Prepare 20-year Equipment Replacement Plan 73 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Payroll PROGRAM SUMMARY: The Payroll program of the Finance Department completes the biweekly payroll, maintains all payroll records and completes the payroll quarterly reports. It also provides support services to employees regarding payroll issues. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 92,461 $ 53,604 $ 56,385 $ 61,203 8.54% Fringe Benefits 37,167 18,510 25,334 23,420 -7.56% Professional & Technical Services 13,107 12,985 14,250 14,750 3.51% Utilities and Maintenance 82 82 600 350 -41.67% Operations 622 836 1,850 2,150 16.22% City Support Services (19,544)(19,502)(22,416)(22,385)-0.14% Supplies and Materials - - 200 100 -50% 123,895 66,515 76,203 79,588 4.44% NET TAX AND GENERAL REVENUE SUPPORTED 123,895 66,515 76,203 79,588 4.44% PERSONNEL: Number of FTE Positions 1.0 1.0 0.6 0.6 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Assist employees with payroll and benefit issues/questions. 2. Provide accurate and timely payroll and reports. 3. Work with insurance company to manage insurance programs. 4. Prepare benefit open enrollment information and assist employees with questions regarding their benefit options. 5. Provide employee benefit orientations for new hires 74 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Tax Increment Financing (TIF) Administration PROGRAM SUMMARY: The Tax Increment Financing Administration program of the Finance Department records and reports tax increment program activities. It is charged with the responsibility of ensuring compliance with state statutes and guidelines. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 12,000 $ 12,549 $ 13,318 $ 14,207 6.68% Fringe Benefits 4,100 2,545 8,892 4,648 -47.73% Professional & Technical Services 2,500 2,600 3,900 3,700 -5.13% Operations - - 250 250 0% City Support Services (16,900)(21,203)(15,496)(15,493)-0.02% 1,700 (3,509) 10,864 7,312 -32.7% NET TAX AND GENERAL REVENUE SUPPORTED 1,700 (3,509) 10,864 7,312 -32.7% PERSONNEL: Number of FTE Positions 0.1 0.1 0.1 0.1 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue analysis of Tax Increment Financing funds. 2. Assist with implementation of new TIF districts. 3. Prepare annual Office of the State Auditor reports 75 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Finance PROGRAM: Utility Billing PROGRAM SUMMARY: The Utility Billing program of the Finance Department prepares and issues monthly utility bills for collection of utility service fees from its customers. Utility records are maintained and updated within this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 202 1. Assist customers with utility billing issues and questions – change of service, change of ownership, etc. 2. Promote automatic payment options to increase usage of automatic payment. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 360 $ 210 $ 5,000 $ 5,000 0% 360 210 5,000 5,000 0% Expenditures Salaries and Wages $ 61,209 $ 62,599 $ 65,333 $ 71,898 10.05% Fringe Benefits 34,535 29,826 30,498 38,033 24.71% Professional & Technical Services 71,102 77,769 72,500 62,500 -13.79% Utilities and Maintenance 163 82 2,600 2,600 0% Operations 1,318 4,218 4,500 5,100 13.33% City Support Services (94,485)(94,435)(72,066)(72,031)-0.05% Supplies and Materials 52 529 500 500 0% 73,894 80,588 103,865 108,600 4.56% NET TAX AND GENERAL REVENUE SUPPORTED 73,534 80,378 98,865 103,600 4.79% PERSONNEL: Number of FTE Positions 0.85 0.85 0.85 0.85 76 CITY OF HOPKINS FUNCTION: LEGAL Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Licenses, Permits & Fines $ 98,225 $ 96,702 $ 125,000 $ 125,000 0% 98,225 96,702 125,000 125,000 0% Expenditures Professional & Technical Services $ 286,522 $ 282,546 $ 225,000 $ 225,000 0% 286,522 282,546 225,000 225,000 0% Indirectly Funded Amount 188,297 185,844 100,000 100,000 0% The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 77 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Administration PROGRAM: Legal PROGRAM SUMMARY: The Legal department represents the City in court, at City Council meetings and direct contact with staff and the general public. The firm of Kennedy & Graven is retained on a fee per hour basis. They respond to legal summons and/or initiate action on behalf of the City. Written and oral inquiries are made by staff, council, citizens and other interested parties. The city engages other law firms when necessary. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City 4. Assist City staff with development projects FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 98,225 $ 96,702 $ 125,000 $ 125,000 0% 98,225 96,702 125,000 125,000 0% Expenditures Professional & Technical Services $ 286,522 $ 282,546 $ 225,000 $ 225,000 0% 286,522 282,546 225,000 225,000 0% NET TAX AND GENERAL REVENUE SUPPORTED 188,297 185,844 100,000 100,000 0% PERSONNEL: The City contracts with a legal firm to represent the City. 78 CITY OF HOPKINS FUNCTION: MUNICIPAL BUILDING Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Expenditures Salaries and Wages $ 96,630 $ 98,094 $ 114,651 $ 104,417 -8.93% Fringe Benefits 40,525 36,462 42,586 47,305 11.08% Professional & Technical Services 53,612 59,813 55,550 57,550 3.6% Utilities and Maintenance 168,892 197,120 159,300 162,325 1.9% Operations 335 966 3,150 3,040 -3.49% City Support Services 22,095 23,830 22,975 23,755 3.39% Supplies and Materials 13,061 10,407 17,775 17,525 -1.41% Equipment Allocation 15,282 - - - 0% 410,432 426,692 415,987 415,917 -0.02% Reimbursed Expenditures City Support Services $ (32,816) $ (32,814) $ (35,086) $ (35,086)0% (32,816)(32,814)(35,086)(35,086)0% Net Total Expenditures 377,616 393,878 380,901 380,831 -0.02% Indirectly Funded Amount 377,616 393,878 380,901 380,831 -0.02% The Municipal Building Department consists of building maintenace. 79 CITY OF HOPKINS FUNCTION: Building Maintenance PROGRAM: Maintenance – Municipal Buildings PROGRAM SUMMARY: The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Municipal Budget covers City Hall and the Police Department. In house maintenance personnel and contractual custodial services maintain these buildings and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Maintain City Hall to assure a safe and comfortable environment for Residents and City employees at the lowest cost 2. Continue Green Initiatives within City Hall. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 96,630 $ 98,094 $ 114,651 $ 104,417 -8.93% Fringe Benefits 40,525 36,462 42,586 47,305 11.08% Professional & Technical Services 53,612 59,813 55,550 57,550 3.6% Utilities and Maintenance 168,892 197,120 159,300 162,325 1.9% Operations 335 966 3,150 3,040 -3.49% City Support Services (10,721)(8,984)(12,111)(11,331)-6.44% Supplies and Materials 13,061 10,407 17,775 17,525 -1.41% Equipment Allocation 15,282 - - - 0% 377,616 393,878 380,901 380,831 -0.02% NET TAX AND GENERAL REVENUE SUPPORTED 377,616 393,878 380,901 380,831 -0.02% PERSONNEL: Number of FTE Positions 1.45 1.45 1.28 1.28 FUND 101 – GENERAL FUND 80 CITY OF HOPKINS FUNCTION: COMMUNITY SERVICES Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 150 $- $ 500 $- -100% Licenses, Permits & Fines 608,942 714,179 484,500 568,000 17.23% Charges for Current Services 123,768 169,925 110,400 178,450 61.64% 732,860 884,104 595,400 746,450 25.37% Expenditures Salaries and Wages $ 741,672 $ 573,101 $ 766,484 $ 916,498 19.57% Fringe Benefits 257,260 187,405 292,212 287,932 -1.46% Professional & Technical Services 214,113 224,455 253,285 300,181 18.52% Utilities and Maintenance 8,584 9,440 13,880 13,880 0% Operations 15,295 12,683 34,060 36,640 7.57% City Support Services 44,247 49,833 60,846 60,189 -1.08% Supplies and Materials 14,179 8,111 14,485 14,685 1.38% Equipment Allocation 4,775 10,175 5,300 5,300 0% 1,300,125 1,075,203 1,440,552 1,635,305 13.52% Reimbursed Expenditures City Support Services $ (61,000) $ (60,132) $ (71,632) $ (71,632)0% (61,000)(60,132)(71,632)(71,632)0% Net Total Expenditures 1,239,125 1,015,071 1,368,920 1,563,673 14.23% Indirectly Funded Amount 506,265 130,967 773,520 817,223 5.65% 81 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Receptionist PROGRAM SUMMARY: The Receptionist program of the Community Services Department answers calls at main switchboard and route calls to various departments. Directs walk-in customers to the appropriate department. Sales of dog licenses and parking permits occur in this program. Receipts are accepted for payment of building permits and utility bills. The program also provides clerical and secretarial services to other departments. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Professional & Technical Services $ 76 $- $- $-0% City Support Services 232 -- - 0% Supplies and Materials 87 -- - 0% 395 - - - 0% NET TAX AND GENERAL REVENUE SUPPORTED 395 - - - 0% PERSONNEL: Number of FTE Positions 0 0 0 0 The FTE allocation was reclassified to administration in 2020. OBJECTIVES TO BE ACCOMPLISHED IN 2022: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. N/A – Program Combined with Administration Department 82 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Assessing PROGRAM SUMMARY: The Assessing Department assists property owners with Homestead classification and works with Hennepin County on property valuations. The department also prepares special assessment rolls and responds to property owner concerns and questions. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 966 $ 256 $ 3,000 $ 3,000 0% 966 256 3,000 3,000 0% Expenditures Salaries and Wages $ 62,640 $ 58,639 $ 68,664 $ 72,302 5.3% Fringe Benefits 37,214 29,698 36,275 38,597 6.4% Professional & Technical Services 168,571 174,033 184,375 190,171 3.14% Utilities and Maintenance 343 246 350 350 0% Operations 124 89 800 900 12.5% City Support Services (22,884)(22,786)(46,606)(46,531)-0.16% Supplies and Materials 504 267 300 300 0% 246,512 240,186 244,158 256,089 4.89% NET TAX AND GENERAL REVENUE SUPPORTED 245,546 239,930 241,158 253,089 4.95% PERSONNEL: Number of FTE Positions 1.05 1.05 1.00 1.00 OBJECTIVES TO BE ACCOMPLISHED IN 2023: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Prepare special assessment rolls for certification on taxes. 2. Assist property owners with property related issues. 3. Maintain the Property and Contact Information in the Springbrook Financial and Permitworks Software. 83 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: City Clerk PROGRAM SUMMARY: The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business licenses applications are reviewed prior to issuance. The City Clerk is also the purchasing officer of the city. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 8,657 $ 8,520 $ 7,000 $ 8,000 14.29% 8,657 8,520 7,000 8,000 14.29% Expenditures Salaries and Wages $ 76,739 $ 74,437 $ 83,199 $ 88,462 6.33% Fringe Benefits 26,478 21,089 25,842 28,378 9.81% Professional & Technical Services 2,315 4,575 5,000 6,000 20% Utilities and Maintenance 164 164 200 200 0% Operations 7,038 8,535 11,400 12,325 8.11% City Support Services (33,836)(32,685)(20,197)(19,980)-1.07% Supplies and Materials 1,275 436 -200 0% 80,173 76,551 105,444 115,585 9.62% NET TAX AND GENERAL REVENUE SUPPORTED 71,516 68,031 98,444 107,585 9.29% PERSONNEL: Number of FTE Positions 0.75 0.75 0.75 0.75 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: Goal 2, Strategy 2 – Go Green 1. Purchase “green” or recycled products when available if the pricing is competitive and product meets quality standards. 2. Ensure that the City Document Archives section of the City’s website contains the most up to date information in all areas listed. 3. Review and update where needed applications and forms that are available on the Web site. PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Registered voters 12,613 11,896 10,742 11,500 Voter turnout Absentee voter count 7,511 516 2,500 500 In person voter count 3,087 2,158 4,784 2,000 Number of Elections & Primaries Held 3 1 2 3 Number of Days Open for Early Voting 43 43 43 43 84 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Elections PROGRAM SUMMARY: The Elections program of the Community Services Department provides supervision of elections, registers voters, and certifies election results. All state and federal legislation is reviewed, judges are trained, and equipment and polling places are prepared. After elections ballots are counted and the results certified to the County and State of Minnesota. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 11,203 $ 28,762 $- $-0% 11,203 28,762 - - 0% Expenditures Salaries and Wages $ 82,414 $ 45,688 $ 86,933 $ 90,273 3.84% Fringe Benefits 13,701 10,320 13,024 12,693 -2.54% Professional & Technical Services -107 -10,000 0% Utilities and Maintenance 4,043 3,897 4,000 4,000 0% Operations 2,454 206 4,200 6,700 59.52% City Support Services 208 226 202 215 6.44% Supplies and Materials 7,466 4,148 6,000 6,000 0% 110,286 64,592 114,359 129,881 13.57% NET TAX AND GENERAL REVENUE SUPPORTED 99,083 35,830 114,359 129,881 13.57% PERSONNEL: Number of FTE Positions 0.35 0.35 0.35 0.35 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Recruit and train additional Election Judges for the early voting, primaries and general election. 2. Work with Hennepin County City to review voting equipment and the possible replacement. 3. Work to better organize information and supplies for Election Judges use on Election Day. 85 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Building Code Inspection PROGRAM SUMMARY: The Building Code Inspection program of the Community Services Department inspects all new or remodeled buildings to insure they meet the minimum requirements of the state building code. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases and an issuance of a certificate of occupancy. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 312,707 $ 401,262 $ 233,000 $ 316,000 35.62% Charges for Current Services 96,054 137,487 79,000 157,000 98.73% 408,761 538,749 312,000 473,000 51.6% Expenditures Salaries and Wages $ 193,892 $ 221,892 $ 201,479 $ 326,243 61.92% Fringe Benefits 67,035 84,367 80,583 81,145 0.7% Professional & Technical Services 39,138 40,661 57,000 87,000 52.63% Utilities and Maintenance 2,000 2,372 3,500 3,500 0% Operations 3,884 3,561 8,420 7,600 -9.74% City Support Services 37,519 42,772 52,970 51,833 -2.15% Supplies and Materials 4,394 2,752 5,875 5,875 0% Equipment Allocation 4,775 6,375 5,300 5,300 0% 352,637 404,752 415,127 568,496 36.95% NET TAX AND GENERAL REVENUE SUPPORTED (56,124)(133,997) 103,127 95,496 -7.4% PERSONNEL: Number of FTE Positions 2.2 2.2 2.5 3.5 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Work on closing out aging permits from the past years. 2. Continue utilizing Laserfiche for paperless document retention 3. Review Permit Fees for rate increases 4. Continue to provide excellent customer service especially as 86 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Fire Code Inspection PROGRAM SUMMARY: The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 5,022 $ 5,103 $ 9,000 $ 6,000 -33.33% 5,022 5,103 9,000 6,000 -33.33% Expenditures Salaries and Wages $ 34,983 $ 31,076 $ 40,139 $ 82,320 105.09% Fringe Benefits 14,279 8,781 15,106 33,158 119.5% Professional & Technical Services 36 299 -100 0% Utilities and Maintenance 49 49 50 50 0% Operations 15 2 25 --100% City Support Services 468 507 640 679 6.09% 49,830 40,714 55,960 116,307 107.84% NET TAX AND GENERAL REVENUE SUPPORTED 44,808 35,611 46,960 110,307 134.9% PERSONNEL: Number of FTE Positions 0.25 0.25 0.25 0.25 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue the fire prevention inspection program. 2. Implement new fire code software. 87 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Heating and Plumbing Code Inspection PROGRAM SUMMARY: The Heating and Plumbing Code Inspection program of the Community Services Department inspects new and remodeled buildings for heating and plumbing compliance. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases. Become familiar with new gas, mechanical and energy code. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 109,734 $ 152,320 $ 88,000 $ 96,000 9.09% 109,734 152,320 88,000 96,000 9.09% Expenditures Salaries and Wages $ 93,283 $ 96,907 $ 89,826 $ 92,565 3.05% Fringe Benefits 34,765 28,601 30,429 32,098 5.48% Professional & Technical Services 1,855 3,609 1,200 1,200 0% Utilities and Maintenance 678 1,155 1,750 1,750 0% Operations 379 19 2,350 2,350 0% City Support Services 544 589 798 847 6.14% Supplies and Materials -232 500 500 0% Equipment Allocation -950 - - 0% 131,504 132,062 126,853 131,310 3.51% NET TAX AND GENERAL REVENUE SUPPORTED 21,770 (20,258) 38,853 35,310 -9.12% PERSONNEL: Number of FTE Positions 1.0 1.0 1.1 1.1 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. PermitWorks Training 2. Close Out Aging Permits 3. Look at Updating Permit Fees PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected New Commercial/Industrial Permits 2 1 5 - Valuation 5,138,000 912,500 82,106,328 - New Single-Family Home Permits - 1 3 1 Valuation - 575,000 1,298,000 600,000 New Multiple Family Building Permits - 1 3 3 Valuation -8,871,151 31,235,491 35,000,000 Fire Permits 50 74 75 75 Total Building Permits 636 707 446 500 Valuation 21,124,486 38,156,628 137,019,951 100,000,000 88 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Housing Inspection PROGRAM SUMMARY: The Housing Inspection program of the Community Services Department inspects all existing buildings from time to time to insure they are maintained safe in accordance with city housing code. Rental properties are inspected every five years to identify hazards to the occupants and to insure buildings are well maintained and to improve on the city’s housing stock. Homes being sold in the community must be evaluated. A listing of certified evaluators for the Truth in Housing program are maintained. Home sales are monitored to insure compliance. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Property Taxes $ 150 $- $ 500 $--100% Licenses, Permits & Fines 159,172 137,874 145,000 139,000 -4.14% Charges for Current Services 15,545 3,420 26,000 16,050 -38.27% 174,867 141,294 171,500 155,050 -9.59% Expenditures Salaries and Wages $ 129,867 $ 27,190 $ 131,923 $ 140,513 6.51% Fringe Benefits 41,613 5,371 60,951 53,039 -12.98% Professional & Technical Services 2,028 1,092 3,810 3,810 0% Utilities and Maintenance 1,258 1,021 2,580 2,580 0% Operations 1,233 224 4,240 4,240 0% City Support Services 720 781 919 975 6.09% Supplies and Materials 453 276 1,550 1,550 0% Equipment Allocation -1,900 - - 0% 177,172 37,855 205,973 206,707 0.36% NET TAX AND GENERAL REVENUE SUPPORTED 2,305 (103,439) 34,473 51,657 49.85% PERSONNEL: Number of FTE Positions 1.82 1.82 0.82 0.82 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Retain all new rental inspection results on Laserfiche 2. Update Rental Licensing and Inspection Fees 89 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Miscellaneous Community Inspection PROGRAM SUMMARY: The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. Track responses to citizens and results of the complaint. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 13,650 $ 9,100 $ 2,500 $ 3,000 20% Charges for Current Services - - 400 400 0% 13,650 9,100 2,900 3,400 17.24% Expenditures Salaries and Wages $ 66,479 $ 15,853 $ 62,281 $ 21,652 -65.23% Fringe Benefits 21,687 (1,424) 29,246 8,134 -72.19% Professional & Technical Services 94 79 1,900 1,900 0% Utilities and Maintenance 49 536 1,450 1,450 0% Operations 166 45 2,625 2,525 -3.81% City Support Services 276 297 488 519 6.35% Supplies and Materials - - 260 260 0% Equipment Allocation -950 - - 0% 88,751 16,336 98,250 36,440 -62.91% NET TAX AND GENERAL REVENUE SUPPORTED 75,101 7,236 95,350 33,040 -65.35% PERSONNEL: Number of FTE Positions 0.860 0.86 0.70 0.70 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue neighborhood sweeps and respond to resident complaints in a prompt and courteous manner. 2. Send out newsletter in spring regarding sweeps potential violations. 90 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Community Services PROGRAM: Vacant Property Management PROGRAM SUMMARY: The Vacant Property Management program of the Community Services Department FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $- $- $ 2,000 $ 2,000 0% - - 2,000 2,000 0% Expenditures Salaries and Wages $ 1,375 $ 1,419 $ 2,040 $ 2,168 6.27% Fringe Benefits 488 602 756 690 -8.73% Operations 2 2 - - 0% 1,865 2,023 2,796 2,858 2.22% NET TAX AND GENERAL REVENUE SUPPORTED 1,865 2,023 796 858 7.79% PERSONNEL: Number of FTE Positions 0.02 0.02 0.02 0.02 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to educate mortgage banks, property managers, realtors and vacant property owners on why we want them to register their property. 2. Send out enforcement letters and billings in a timely manner 91 CITY OF HOPKINS FUNCTION: POLICE Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 405,199 $ 372,327 $ 330,000 $ 380,000 15.15% Licenses, Permits & Fines 122,777 76,717 149,300 151,800 1.67% Charges for Current Services 1,712 5,720 35,000 35,000 0% Other Revenues 8,533 9,532 500 500 0% 538,221 464,296 514,800 567,300 10.2% Expenditures Salaries and Wages $ 3,684,854 $ 3,757,326 $ 3,926,587 $ 4,147,197 5.62% Fringe Benefits 1,674,820 1,397,071 1,604,014 1,767,420 10.19% Professional & Technical Services 108,582 144,533 177,615 177,615 0% Utilities and Maintenance 158,481 186,207 166,306 219,184 31.8% Operations 170,769 217,647 195,148 208,468 6.83% City Support Services 218,906 238,240 238,664 262,845 10.13% Supplies and Materials 93,061 99,979 94,210 161,039 70.94% Equipment Allocation 8,395 6,740 15,000 15,000 0% 6,117,868 6,047,743 6,417,544 6,958,768 8.43% Indirectly Funded Amount 5,579,647 5,583,447 5,902,744 6,391,468 8.28% 92 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Administration PROGRAM SUMMARY: To be recognized as a progressive law enforcement agency, striving to enhance the quality of life for all citizens. We seek to collaborate with all stakeholders to continually improve our community. Hopkins Police Department will recruit, hire, and retain the most qualified personnel to fulfill this vision. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. To provide effective, efficient, and professional police services to the community. 2. Continue to produce the highest ethical standards and transparent police department. 3. Create trust and partnerships with our multi-cultural community. 4. Promote a proactive, problem-solving culture that focuses on crime prevention. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 409,777 $ 417,974 $ 433,394 $ 460,654 6.29% Fringe Benefits 170,789 172,705 179,216 187,870 4.83% Professional & Technical Services 8,800 19,388 23,717 23,717 0% Utilities and Maintenance 59,673 81,068 61,892 98,437 59.05% Operations 56,783 57,657 64,534 65,314 1.21% City Support Services 21,492 22,670 22,724 24,491 7.78% Supplies and Materials 19,261 10,929 17,699 18,666 5.46% Equipment Allocation 8,395 2,789 10,000 10,000 0% 754,970 785,180 813,176 889,149 9.34% NET TAX AND GENERAL REVENUE SUPPORTED 754,970 785,180 813,176 889,149 9.34% PERSONNEL: Number of FTE Positions 3.1 2.95 2.95 2.95 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Calls for Service 26,139 21432 Not Available Not Available Traffic Stops 3589 1720 Not Available Not Available Total Citations 423 303 Not Available Not Available Part I Crimes - Felony 491 503 Not Available Not Available Part II Crimes - Non Felony 707 658 Not Available Not Available 93 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Patrol PROGRAM SUMMARY: To provide public safety by reducing crime, enhancing the quality of life for all citizens, while working collaboratively with all stakeholders in the community. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 405,199 $ 372,327 $ 330,000 $ 380,000 15.15% Licenses, Permits & Fines 33,087 19,410 73,700 75,500 2.44% Charges for Current Services 1,712 5,634 25,000 25,000 0% Other Revenues 8,533 9,532 - - 0% 448,531 406,903 428,700 480,500 12.08% Expenditures Salaries and Wages $ 2,536,559 $ 2,639,421 $ 2,777,371 $ 2,727,400 -1.8% Fringe Benefits 1,206,251 991,746 1,172,924 1,212,582 3.38% Professional & Technical Services 70,486 81,512 94,276 94,276 0% Utilities and Maintenance 20,472 21,777 22,900 28,000 22.27% Operations 68,621 89,184 49,322 57,262 16.1% City Support Services 130,944 142,885 140,633 157,962 12.32% Supplies and Materials 54,666 63,456 47,871 76,121 59.01% 4,087,999 4,029,981 4,305,297 4,353,603 1.12% NET TAX AND GENERAL REVENUE SUPPORTED 3,639,468 3,623,078 3,876,597 3,873,103 -0.09% PERSONNEL: Number of FTE Positions 26.08 26.88 27.18 27.18 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Provide the highest level of professional customer service to the public with each and every contact. 2. Create trust and partnerships with our multi-cultural community. 3. Provide proactive criminal enforcement through intelligence-lead policing efforts. 4. Committed to identifying and solving problems through building positive community partnerships 94 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: SWAT Team PROGRAM SUMMARY: The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 52,089 $ 55,544 $ 45,781 $ 48,721 6.42% Fringe Benefits 20,671 18,500 17,881 44,592 149.38% Professional & Technical Services -196 - - 0% Utilities and Maintenance 670 7,435 2,150 2,150 0% Operations 6,651 9,772 8,107 10,187 25.66% City Support Services 8,172 8,906 9,401 9,966 6.01% Supplies and Materials 3,137 5,942 5,249 5,249 0% 91,390 106,295 88,569 120,865 36.46% NET TAX AND GENERAL REVENUE SUPPORTED 91,390 106,295 88,569 120,865 36.46% PERSONNEL: Number of FTE Positions 0.35 0.5 0.5 0.5 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Committed to the highest level of training standards and performance standards. 2. Build upon strong working relationships with other consortium SWAT members and partners. 3. Continue to be a leader in the consortium of SWAT teams. 4. Continue to prepare for civil unrest while protecting everyone’s civil liberties 95 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTON: Police PROGRAM: Reserves PROGRAM SUMMARY: The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, community-building and outreach efforts. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 9,564 $ 6,932 $ 10,403 $ 266,404 2460.84% Fringe Benefits 3,667 2,065 3,988 85,250 2037.66% Operations 723 741 1,764 1,764 0% City Support Services 612 666 668 709 6.14% Supplies and Materials 2,595 3,400 5,625 9,040 60.71% 17,161 13,804 22,448 363,167 1517.81% NET TAX AND GENERAL REVENUE SUPPORTED 17,161 13,804 22,448 363,167 1517.81% PERSONNEL: Number of FTE Positions 0.1 0.05 0.15 0.15 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to recruit individuals with diverse backgrounds. 2. Continue to supplement uniformed patrol with calls for service and problem-solving efforts. 3. Utilize Reserves in outreach and in police and community relations. 4. Utilize Reserve personnel whenever feasible to alleviate uniformed patrol calls for service. 96 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTON: Police PROGRAM: Investigations PROGRAM SUMMARY: The Investigations Division of the Police Department conducts thorough criminal investigations on all criminal activity that has occurred in Hopkins, while working with other police agencies to identify suspects and work collaboratively to prevent future crime. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 42,415 $ 53,507 $ 71,600 $ 72,000 0.56% 42,415 53,507 71,600 72,000 0.56% Expenditures Salaries and Wages $ 248,413 $ 271,925 $ 265,060 $ 220,748 -16.72% Fringe Benefits 122,166 104,282 116,730 95,921 -17.83% Professional & Technical Services 28,016 42,153 58,838 58,838 0% Utilities and Maintenance 580 607 1,040 1,040 0% Operations 11,083 15,727 19,345 21,865 13.03% City Support Services 27,078 29,767 30,457 32,870 7.92% Supplies and Materials 6,356 8,447 7,057 7,757 9.92% 443,692 472,908 498,527 439,039 -11.93% NET TAX AND GENERAL REVENUE SUPPORTED 401,277 419,401 426,927 367,039 -14.03% PERSONNEL: Number of FTE Positions 2.95 2.45 2.45 2.45 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue professional development by training officers in the Investigations Division of the Hopkins Police Department. 2. Continue to problem solve and reduce crime through crime analysis and intelligence-lead policing. 3. Work in partnership with other law enforcement agencies to identify crime trends and patterns on a local and regional level. 4. Continue to work in partnership with all divisions within the Police Department. 5. Continue to work in partnership with the County Attorney’s Office to successfully prosecute individuals involved in criminal behavior. 97 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Southwest Hennepin Drug Task Force PROGRAM SUMMARY: The Southwest Hennepin Drug Task Force is a multi-jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance, and other covert activities. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to work jointly with the Criminal Investigations Unit to identify suspects engaged in criminal activity. 2. Work with all divisions of the Police Department and communicate current crime trends and/or possible suspects residing in the City. 3. Continue to work nuisance property and crime free multi-housing issues with the Police Services Liaison to remove problem tenants from units who continue to use illegal drugs. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 43,275 $- $- $-0% 43,275 - - - 0% Expenditures Salaries and Wages $ 97,482 $ 45,037 $ 12,000 $ 12,240 2% Fringe Benefits 31,539 10,840 240 245 2.08% Operations 6,453 8,306 6,500 6,500 0% City Support Services 7,260 7,918 8,319 8,788 5.64% Supplies and Materials -857 - - 0% Equipment Allocation -3,951 5,000 5,000 0% 142,734 76,909 32,059 32,773 2.23% NET TAX AND GENERAL REVENUE SUPPORTED 99,459 76,909 32,059 32,773 2.23% PERSONNEL: Number of FTE Positions 0.85 0.95 - - 98 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Crime Prevention Specialist/Outreach PROGRAM SUMMARY: The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs including Neighborhood Watch, National Night Out, Crime-free Multi-housing and numerous other outreach initiatives. In addition, the Police Services Liaison administers the alarm program, nuisance property program, review and revisions of various ordinances and grant research, application and administration and is the staff liaison to SCIP, One Voice, HBCA, Rental Community Engagement Program and other committees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Increase participation in Crime Free Multi-Housing program & Neighborhood Watch. 2. Partner with businesses and neighborhoods to reduce crime. 3. Coordinate information sharing with Police/city staff regarding nuisance properties and other quality of life issues. 4. Coordinate efforts with Joint Community Police Partnership (JCPP) Community Liaison. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 4,000 $ 3,800 $ 3,500 $ 3,800 8.57% Other Revenues - - 500 500 0% 4,000 3,800 4,000 4,300 7.5% Expenditures Salaries and Wages $ 86,200 $ 87,347 $ 100,025 $ 102,304 2.28% Fringe Benefits 39,342 30,262 38,574 41,103 6.56% Professional & Technical Services 197 467 - - 0% Operations 20,230 36,009 43,073 43,073 0% City Support Services 1,564 1,695 1,589 1,688 6.23% Supplies and Materials 5,639 1,930 5,699 7,196 26.27% 153,172 157,710 188,960 195,364 3.39% NET TAX AND GENERAL REVENUE SUPPORTED 149,172 153,910 184,960 191,064 3.3% PERSONNEL: Number of FTE Positions 0.85 1.0 1.0 1.0 Torch Run Cops ‘n Kids Fishing 99 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Support Services PROGRAM SUMMARY: This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $- $- $ 500 $ 500 0% Charges for Current Services -86 10,000 10,000 0% -86 10,500 10,500 0% Expenditures Salaries and Wages $ 244,770 $ 233,146 $ 282,553 $ 308,726 9.26% Fringe Benefits 80,395 66,671 74,461 99,857 34.11% Professional & Technical Services 1,083 817 784 784 0% Utilities and Maintenance 137 778 1,274 1,274 0% Operations 225 251 2,503 2,503 0% City Support Services 2,944 3,201 3,228 3,425 6.1% Supplies and Materials - - 490 490 0% 329,554 304,864 365,293 417,059 14.17% NET TAX AND GENERAL REVENUE SUPPORTED 329,554 304,778 354,793 406,559 14.59% PERSONNEL: Number of FTE Positions 3 3 3 3 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to refine processes for better efficiency of records maintenance. 2. Continue to provide weekly crime statistics and learning additional crime analysis software and mapping tools. 3. Maintain efficiency with report flow to respective agencies. 100 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Police PROGRAM: Systems Management PROGRAM SUMMARY: The Systems Management program of the Police Department is under the supervision of the city’s IT department who oversees the maintenance of all police computer system networks, and state communications interfaces. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to provide exceptional services to all stakeholders. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Utilities and Maintenance $ 76,949 $ 74,542 $ 77,050 $ 88,283 14.58% City Support Services 18,840 20,532 21,645 22,946 6.01% Supplies and Materials 1,407 5,018 4,520 36,520 707.96% 97,196 100,092 103,215 147,749 43.15% NET TAX AND GENERAL REVENUE SUPPORTED 97,196 100,092 103,215 147,749 43.15% PERSONNEL: Number of FTE Positions 0 0 0 0 101 CITY OF HOPKINS FUNCTION: FIRE Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 153,250 $ 148,007 $ 122,000 $ 140,000 14.75% Licenses, Permits & Fines 5,231 4,808 2,300 4,000 73.91% Charges for Current Services 2,085 4,970 10,500 10,500 0% Other Revenues 1,195 650 3,500 3,500 0% 161,761 158,435 138,300 158,000 14.24% Expenditures Salaries and Wages $ 591,545 $ 657,576 $ 624,360 $ 661,293 5.92% Fringe Benefits 372,282 369,871 387,675 370,376 -4.46% Professional & Technical Services 13,306 26,284 24,900 24,900 0% Utilities and Maintenance 110,749 133,361 128,550 129,800 0.97% Operations 77,337 139,469 86,570 86,670 0.12% City Support Services 228,551 250,868 266,409 277,592 4.2% Supplies and Materials 129,136 108,959 81,660 82,760 1.35% Equipment Allocation 8,710 1,442 16,700 - -100% 1,531,616 1,687,830 1,616,824 1,633,391 1.02% Indirectly Funded Amount 1,369,855 1,529,395 1,478,524 1,475,391 -0.21% The Fire Department is made up of two programs. They are Fire Prevention/Suppresion and Emergency Preparedness. 102 CITY OF HOPKINS FUNCTION: Fire PROGRAM: Fire PROGRAM SUMMARY: The Fire Department includes Emergency Medical Services (EMS), Fire Prevention/Suppression programs. The EMS program supports the Police Department in managing responses to medical emergencies. The Fire Department responds to all life threatening situations and when there are no police officers available to respond. Fire suppression is the response to all fires, hazardous materials, special hazards and special rescue incidents in the city and fire prevention is the enforcement of the fire code, and the review and inspection of new construction. It also provides for public education and files reports with the State Fire Marshall on department activity, property loss or death due to fire emergencies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. Recruitment and Retention of members. 2. Implement a Mental Health and PTSD program for Fire Department Staff. 3. Develop and Implement a Staffing plan for the future of HFD. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 153,250 $ 148,007 $ 122,000 $ 140,000 14.75% Licenses, Permits & Fines 5,231 4,808 2,300 4,000 73.91% Charges for Current Services 2,085 4,970 10,500 10,500 0% Other Revenues 1,195 650 3,500 3,500 0% 161,761 158,435 138,300 158,000 14.24% Expenditures Salaries and Wages $ 591,545 $ 657,576 $ 624,360 $ 661,293 5.92% Fringe Benefits 372,282 369,871 387,675 370,376 -4.46% Professional & Technical Services 13,306 26,284 24,900 24,900 0% Utilities and Maintenance 110,749 133,361 128,550 129,800 0.97% Operations 77,337 139,469 86,570 86,670 0.12% City Support Services 228,551 250,868 266,409 277,592 4.2% Supplies and Materials 129,136 108,959 81,660 82,760 1.35% Equipment Allocation 8,710 1,442 16,700 --100% 1,531,616 1,687,830 1,616,824 1,633,391 1.02% NET TAX AND GENERAL REVENUE SUPPORTED 1,369,855 1,529,395 1,478,524 1,475,391 -0.21% PERSONNEL: Number of FTE Positions 4.1 4.1 5.5 6.0 Volunteer Firefighters 32 32 32 32 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Total Calls (Medical & Fire Suppression) 1,445 1,585 1,585 Not Available Average Response Time (minutes) 4.1 4.6 4.6 Not Available Dollar Loss From Fire Damage $ 1,560,000 $ 442,000 $ 442,000 Not Available FUND 101 – GENERAL FUND 103 CITY OF HOPKINS FUNCTION: PUBLIC WORKS Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 204,975 $ 185,220 $ 170,000 $ 185,000 8.82% Licenses, Permits & Fines 4,395 4,640 19,415 19,415 0% Charges for Current Services 41,573 8,039 3,150 3,150 0% Other Revenues 26,885 13,925 5,300 5,300 0% 277,828 211,824 197,865 212,865 7.58% Expenditures Salaries and Wages $ 1,652,097 $ 1,674,681 $ 1,635,746 $ 1,666,097 1.86% Fringe Benefits 751,862 617,476 734,404 743,099 1.18% Professional & Technical Services 314,047 471,492 525,000 583,000 11.05% Utilities and Maintenance 290,788 382,643 445,665 468,750 5.18% Operations 12,975 48,097 42,170 54,600 29.48% City Support Services 267,885 291,785 320,721 295,004 -8.02% Supplies and Materials 274,799 260,583 336,475 378,100 12.37% Equipment Allocation 50,951 5,844 26,000 - -100% 3,615,404 3,752,601 4,066,181 4,188,650 3.01% Reimbursed Expenditures City Support Services $ (673,362) $ (626,227) $ (556,622) $ (556,622)0% (673,362)(626,227)(556,622)(556,622)0% Net Total Expenditures 2,942,042 3,126,374 3,509,559 3,632,028 3.49% Indirectly Funded Amount 2,664,214 2,914,550 3,311,694 3,419,163 3.25% 104 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Buildings PROGRAM SUMMARY: The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The public works buildings budget covers the entire public works complex. The buildings and equipment are maintained by in house maintenance personnel and the custodial duties by a contract cleaner. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Other Revenues $ 1,210 $- $- $-0% 1,210 - - - 0% Expenditures Salaries and Wages $ 28,642 $ 25,494 $ 26,453 $ 27,556 4.17% Fringe Benefits 9,274 7,860 9,299 10,514 13.07% Professional & Technical Services 24,459 33,890 26,200 25,000 -4.58% Utilities and Maintenance 65,897 84,043 76,965 78,700 2.25% Operations 557 21,237 700 700 0% City Support Services (63,996)(64,132)(27,229)(27,230)0% Supplies and Materials 6,784 6,913 11,775 12,325 4.67% 71,617 115,305 124,163 127,565 2.74% NET TAX AND GENERAL REVENUE SUPPORTED 70,407 115,305 124,163 127,565 2.74% PERSONNEL: Number of FTE Positions 0.4 0.4 0.4 0.4 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Maintain PW building to assure a safe and comfortable environment for all City employees at the lowest cost to the taxpayer. 105 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Equipment Services PROGRAM SUMMARY: The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 95 $ 213 $ 150 $ 150 0% 95 213 150 150 0% Expenditures Salaries and Wages $ 166,539 $ 141,456 $ 225,376 $ 261,469 16.01% Fringe Benefits 82,725 47,373 113,555 117,085 3.11% Professional & Technical Services 6,137 8,885 6,500 7,500 15.38% Utilities and Maintenance 11,232 8,853 9,300 10,400 11.83% Operations 1,261 3,608 5,850 13,500 130.77% City Support Services (49,620)(44,254)(154,162)(152,701)-0.95% Supplies and Materials 4,561 9,001 8,350 9,850 17.96% 222,835 174,922 214,769 267,103 24.37% NET TAX AND GENERAL REVENUE SUPPORTED 222,740 174,709 214,619 266,953 24.38% PERSONNEL: Number of FTE Positions 2.35 2.35 2.00 2.00 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue aggressive maintenance and repair of all city equipment. 2. Purchase pickup trucks, log truck and supervisor vehicles as provided in the City’s Equipment Replacement Plan 106 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Administration PROGRAM SUMMARY: The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks/Forestry & Streets/Traffic; Water and Sewer Utilities and Solid Waste Management. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 172,822 $ 227,700 $ 203,880 $ 213,748 4.84% Fringe Benefits 62,872 61,848 72,867 74,070 1.65% Professional & Technical Services 1,392 3,507 2,000 3,500 75% Utilities and Maintenance 5,528 5,914 6,000 6,000 0% Operations 5,721 8,986 11,400 11,400 0% City Support Services (147,008)(146,920)(118,275)(118,208)-0.06% Supplies and Materials 4,432 4,478 3,000 3,000 0% 105,759 165,513 180,872 193,510 6.99% NET TAX AND GENERAL REVENUE SUPPORTED 105,759 165,513 180,872 193,510 6.99% PERSONNEL: Number of FTE Positions 1.35 1.35 1.68 1.68 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Southwest Light Rail: protect city interests during construction 2. Continue to analyze and respond to opportunities to save energy and be more environmentally conscious while improving service quality and efficiency. 3. Complete 2023 program of street and utility improvements. 107 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Engineering PROGRAM SUMMARY: The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as-builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to consultants involved with construction projects. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 4,290 $ 4,605 $ 18,000 $ 18,000 0% Charges for Current Services 10 45 - - 0% Other Revenues 19,240 9,200 - - 0% 23,540 13,850 18,000 18,000 0% Expenditures Salaries and Wages $ 175,877 $ 163,982 $ 118,701 $ 124,520 4.9% Fringe Benefits 73,590 56,481 43,261 46,741 8.04% Professional & Technical Services 22,820 23,932 23,500 27,000 14.89% Utilities and Maintenance 2,533 2,456 3,800 3,300 -13.16% Operations 3,253 4,973 13,150 13,150 0% City Support Services (275,983) (231,205)(113,281)(113,998)0.63% Supplies and Materials 1,340 746 2,300 3,000 30.43% Equipment Allocation 50,951 5,844 26,000 --100% 54,381 27,209 117,431 103,713 -11.68% NET TAX AND GENERAL REVENUE SUPPORTED 30,841 13,359 99,431 85,713 -13.8% PERSONNEL: Number of FTE Positions 1.75 1.75 1.20 1.20 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to develop and verify utility base maps in the GIS system and integrate with Cartegraph software. 2. Complete West Central Avenues Street Improvement Project 3. Complete 2023 street surface improvement plan. 4. Oversee implementation of the City’s Capital Improvement Plan 108 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Streets and Alleys PROGRAM SUMMARY: The Streets Division of the Public Works Department provides maintenance of 55 miles of streets, 30 miles of alleys and 10 parking lots (including parking ramp) within the City for convenient day-to-day use. Also provides street lighting, traffic signs and signals, sidewalk repair, and special event support. Maintenance includes activities such as sweeping, patching, seal coating and curb repair. Major maintenance is scheduled on a 6 year, maintenance district rotation basis. Routine mill/patching/paving is accomplished throughout the City during the summer season. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Street maintenance utilizing pavement management support information that includes prep seal coat areas and contractual crack sealing. 2. Spring sweeping as weather permits, Mainstreet sweeping every three weeks, residential sweeping (spring, summer and once in the fall). 3. Continued maintenance of storm water drainage systems. 4. Inspect and repair all defective sidewalks in district 5. Preventative patching, repairs to bituminous roadways. 6. Maintain sign and signal change outs, inventory signs, upgrade traffic controls and signals as required. 7. Mainstreet maintenance including flags, refuse, decorations and banners, and streetlight maintenance. 8. Provide traffic control and logistical services for special events such as Raspberry Festival, Mainstreet Days, National Night Out, etc., to support the City goal of promoting and enhancing city events. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 204,975 $ 185,220 $ 170,000 $ 185,000 8.82% Licenses, Permits & Fines 105 35 1,415 1,415 0% Charges for Current Services 9,329 3,721 - - 0% Other Revenues 1,552 - - - 0% 215,961 188,976 171,415 186,415 8.75% Expenditures Salaries and Wages $ 406,253 $ 450,121 $ 401,959 $ 382,978 -4.72% Fringe Benefits 205,383 186,355 203,338 204,338 0.49% Professional & Technical Services 136,813 166,320 214,000 229,500 7.24% Utilities and Maintenance 137,802 193,586 238,500 250,600 5.07% Operations 658 2,784 5,200 5,900 13.46% City Support Services 19,515 24,692 46,174 17,697 -61.67% Supplies and Materials 89,929 77,134 117,200 123,200 5.12% 996,353 1,100,992 1,226,371 1,214,213 -0.99% NET TAX AND GENERAL REVENUE SUPPORTED 780,392 912,016 1,054,956 1,027,798 -2.57% PERSONNEL: Number of FTE Positions 5.82 5.97 6.88 6.88 109 CITY OF HOPKINS PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Miles of streets maintained 55 55 55 55 Crack sealing (square yards) 29,460 32,780 30,000 30,000 Boulevard Trees Planted 66 66 75 75 Number of poles painted/re-painted 54 -55 55 110 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Snow & Ice Removal PROGRAM SUMMARY: The Snow & Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking lots (including parking ramp) and economic development properties within the city for convenient day-to-day use, and to provide safe travel and parking conditions. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 1,477 $- $- $-0% 1,477 - - - 0% Expenditures Salaries and Wages $ 93,504 $ 110,661 $ 131,357 $ 130,341 -0.77% Fringe Benefits 45,863 44,611 39,354 40,338 2.5% Professional & Technical Services 8,695 18,484 9,600 18,000 87.5% Utilities and Maintenance - - 200 1,500 650% Operations - - - 750 0% City Support Services 11,964 13,033 13,558 14,350 5.84% Supplies and Materials 51,386 43,642 57,600 61,175 6.21% 211,412 230,431 251,669 266,454 5.87% NET TAX AND GENERAL REVENUE SUPPORTED 209,935 230,431 251,669 266,454 5.87% PERSONNEL: Number of FTE Positions 1.04 1 1 1 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. Complete plowing/ice treatment operations of all city streets, alleys, parking lots and parking ramp within 10 hours. 2. Complete snow removal operations in downtown areas/ramp/parking lots in efficient manner to meet parking/traffic flow demands. 3. Increase snow/ice maintenance activities on residential streets. 4. Utilize snow emergency policy to maximize safety and snow removal efforts, while minimizing resident conflicts. 5. Help ensure safe travel through efficient, environmentally sensitive use of ice control chemicals PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Snow Removal (inches of precipitation) 52 49 80 Not Available 111 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Park Maintenance & Improvements PROGRAM SUMMARY: The Parks division of the Public Works Department provides for the maintenance of developed parks and grounds adjacent to public buildings and right-of-ways, including: seeding, fertilizing and mowing of grass, tree & plantings maintenance, maintenance of all athletic fields and general playgrounds and maintenance of Shady Oak Beach. Maintenance of Co. Rd 3 median flowers and irrigation is provided. Maintenance of picnic facilities and trails, trash and rubbish removal from parks is also included. Open skating and hockey areas are included. Open skating and hockey areas are provided from December through February for outdoor recreational purposes. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 5,483 $ 3,723 $ 3,000 $ 3,000 0% Other Revenues 4,883 4,725 5,300 5,300 0% 10,366 8,448 8,300 8,300 0% Expenditures Salaries and Wages $ 493,764 $ 430,723 $ 400,821 $ 397,175 -0.91% Fringe Benefits 213,879 158,322 198,303 193,734 -2.3% Professional & Technical Services 81,383 156,315 193,000 214,000 10.88% Utilities and Maintenance 50,985 64,939 81,200 87,150 7.33% Operations 1,370 3,521 1,950 3,950 102.56% City Support Services 84,566 98,152 103,639 103,993 0.34% Supplies and Materials 87,198 96,765 87,400 115,900 32.61% 1,013,145 1,008,737 1,066,313 1,115,902 4.65% NET TAX AND GENERAL REVENUE SUPPORTED 1,002,779 1,000,289 1,058,013 1,107,602 4.69% PERSONNEL: Number of FTE Positions 6.76 6.95 5.64 5.64 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. Continue grounds maintenance of all parks including Shady Oak Beach, plus City Hall, 4 well houses, Public Works garage and all other City owned right-of-way. 2. Provide open skating and hockey at the following parks: Valley, Harley Hopkins, Oakes, Central, Interlachen, open skating only at Hilltop and Burnes. 3. Continue to help ensure safe public use of the parks through inspection & maintenance of play equipment, courts, splash pad and facilities PERFORMANCE MEASURES: 2019 2020 2021 2022 Key Measures:Actual Actual Estimated Projected Number of Parks 19 19 19 19 112 CITY OF HOPKINS FUND 101 – GENERAL FUND FUNCTION: Public Works PROGRAM: Forestry PROGRAM SUMMARY: The Forestry Division of the Public Works Department provides for the maintenance of all trees. Through the utilization of arboricultural practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. Trim 12% of trees on city boulevards. 2. Remove all diseased, dead, dying trees on public property. 3. Thin the public tree ash population by removing poorly sited, declining and poorly formed trees. 4. Manage an effective data base record keeping system that tracks forestry activities to better manage and maintain public trees. 5. Provide for prompt customer service on requests for trimming and tree consultation 6. Continue new tree planting through direct purchase, Hennepin County/Tree Trust programs and grants FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 25,179 $ 337 $- $-0% 25,179 337 - - 0% Expenditures Salaries and Wages $ 114,696 $ 124,544 $ 127,199 $ 128,310 0.87% Fringe Benefits 58,276 54,626 54,427 56,279 3.4% Professional & Technical Services 32,348 60,159 50,200 58,500 16.53% Utilities and Maintenance 16,811 22,852 29,700 31,100 4.71% Operations 155 2,988 3,920 5,250 33.93% City Support Services 15,085 16,192 13,675 14,479 5.88% Supplies and Materials 29,169 21,904 48,850 49,650 1.64% 266,540 303,265 327,971 343,568 4.76% NET TAX AND GENERAL REVENUE SUPPORTED 241,361 302,928 327,971 343,568 4.76% PERSONNEL: Number of FTE Positions 1.46 1.54 1.69 1.69 PERFORMANCE MEASURES: 2019 2020 2021 2022 Key Measures:Actual Actual Estimated Projected Linear miles of Blvd streets to manage 55 55 55 55 Public trees planted (reforestation/restoration) 93 66 66 75 113 CITY OF HOPKINS FUNCTION: RECREATION BUDGET Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Expenditures Salaries and Wages $ 4,931 $ 5,156 $ 5,811 $ 6,141 5.68% Fringe Benefits 1,612 1,624 1,683 2,305 36.96% Professional & Technical Services 171,986 299,301 285,000 295,000 3.51% Utilities and Maintenance 446 749 500 1,200 140% City Support Services 2,096 2,412 2,481 2,348 -5.36% 181,071 309,242 295,475 306,994 3.9% Indirectly Funded Amount 181,071 309,242 295,475 306,994 3.9% The Recreation Department is made up of five main programs. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 114 CITY OF HOPKINS FUNCTION: Recreation PROGRAM: Joint Recreation PROGRAM SUMMARY: Programs for all ages are provided through the Joint Recreation division. Youth classes are offered in over 15 areas of interest including tennis, golf, swimming, ball skills, and arts & crafts. Youth sports leagues are offered in basketball and soccer. Adult classes are offered in several areas of interest, and team sports are offered in soccer, softball, basketball, volleyball, hockey, broomball and football. In addition, the joint recreation division oversees the operation of Shady Oak Beach, attended by over 30,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to develop partnerships in order to expand youth programming opportunities 2. Hire and train attendants to supervise park services at Burnes, Oakes and Valley Parks 3. Provide staff to supervise outdoor ice rinks at 13 locations in Hopkins and Minnetonka from mid-December through mid-February 4. Continue summer playground program for children at 11 locations in Hopkins and Minnetonka. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Professional & Technical Services $ 171,986 $ 299,301 $ 285,000 $ 295,000 3.51% 171,986 299,301 285,000 295,000 3.51% NET TAX AND GENERAL REVENUE SUPPORTED 171,986 299,301 285,000 295,000 3.51% PERSONNEL: Number of Part-time positions 90 90 90 90 FUND 101 - GENERAL FUND 115 CITY OF HOPKINS FUNCTION: Recration PROGRAM: Overpass Skate Park PROGRAM SUMMARY: The Overpass program provides skate boarders, bikers, and inline skate athletes, 10 years of age or older, with a safe, fun, and challenging place to gather and practice their sport. The Overpass creates a healthy recreational opportunity primarily for youth, and young adults. The Overpass is a seasonal operation, and one of only a few tier II aggressive skate parks in the state of Minnesota. This unique park attracts a regional population in addition to serving the residents of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. To operate the park under a contractual operating agreement with 3rd Lair Skate Parks.2. To operate the park with favorable fees for resident and community partners. 3. To increase the number of Hopkins resident users and partner community (Minnetonka and St. Louis Park) resident users. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 4,931 $ 5,156 $ 5,811 $ 6,141 5.68% Fringe Benefits 1,612 1,624 1,683 2,305 36.96% Utilities and Maintenance 446 749 500 1,200 140% City Support Services 2,096 2,412 2,481 2,348 -5.36% 9,085 9,941 10,475 11,994 14.5% NET TAX AND GENERAL REVENUE SUPPORTED 9,085 9,941 10,475 11,994 14.5% PERSONNEL: Number of FTE Positions 0.05 0.05 0.05 0.05 FUND 101 - GENERAL FUND 116 CITY OF HOPKINS FUNCTION: ACTIVITY CENTER Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Charges for Current Services $ 47,206 $ 68,868 $ 90,000 $ 94,300 4.78% Other Revenues 4,933 11,382 4,500 11,000 144.44% 52,139 80,250 94,500 105,300 11.43% Expenditures Salaries and Wages $ 255,413 $ 213,924 $ 228,520 $ 238,567 4.4% Fringe Benefits 83,263 4,594 82,983 88,590 6.76% Professional & Technical Services 13,583 31,445 49,986 50,000 0.03% Utilities and Maintenance 46,721 47,632 41,088 41,720 1.54% Operations 6,871 9,085 12,492 12,525 0.26% City Support Services 15,300 16,675 28,914 33,875 17.16% Supplies and Materials 13,554 16,816 20,405 20,914 2.49% Equipment Allocation 11,465 21,527 2,000 - -100% 446,170 361,698 466,388 486,191 4.25% Indirectly Funded Amount 394,031 281,448 371,888 380,891 2.42% The Activity Center Department is made up of two programs. They are Community Use and Maintenance. 117 CITY OF HOPKINS FUNCTION: Activity Center PROGRAM: Programming PROGRAM SUMMARY: The Activity Center Community Use program provides a facility for residents to use for active or passive activities. Staff coordinates all users of the Activity Center. The Hopkins Activity Center also implements and coordinates the Senior Adult Program, which is geared towards the over 50 Hopkins population. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 47,206 $ 68,868 $ 90,000 $ 94,300 4.78% Other Revenues 4,933 11,382 4,500 11,000 144.44% 52,139 80,250 94,500 105,300 11.43% Expenditures Salaries and Wages $ 243,016 $ 196,315 $ 210,284 $ 219,588 4.42% Fringe Benefits 78,627 (973)76,429 81,281 6.35% Professional & Technical Services 13,583 31,103 49,300 49,300 0% Utilities and Maintenance 2,105 351 2,280 2,350 3.07% Operations 6,871 9,085 12,492 12,525 0.26% City Support Services 4,744 5,204 7,065 10,817 53.11% Supplies and Materials 12,818 12,178 14,000 14,500 3.57% Equipment Allocation 11,465 21,527 2,000 --100% 373,229 274,790 373,850 390,361 4.42% NET TAX AND GENERAL REVENUE SUPPORTED 321,090 194,540 279,350 285,061 2.04% PERSONNEL: Number of FTE Positions 2.8 2.8 2.3 2.3 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Market the Hopkins Activity Center to the over 50 Hopkins population, especially through electronic media. 2. Work with the Hopkins festivals and special events committees to promote events for the over 50 population FUND 101 - GENERAL FUND 118 CITY OF HOPKINS FUNCTION: Activity Center PROGRAM: Maintenance PROGRAM SUMMARY: The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Activity Center maintenance budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this building. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 12,397 $ 17,609 $ 18,236 $ 18,979 4.07% Fringe Benefits 4,636 5,567 6,554 7,309 11.52% Professional & Technical Services -342 686 700 2.04% Utilities and Maintenance 44,616 47,281 38,808 39,370 1.45% City Support Services 10,556 11,471 21,849 23,058 5.53% Supplies and Materials 736 4,638 6,405 6,414 0.14% 72,941 86,908 92,538 95,830 3.56% NET TAX AND GENERAL REVENUE SUPPORTED 72,941 86,908 92,538 95,830 3.56% PERSONNEL: Number of FTE Positions 0.2 0.2 0.2 0.2 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Maintain Activity Center building to assure a safe and comfortable environment for its employees and patrons of the facility FUND 101 - GENERAL FUND 119 CITY OF HOPKINS FUNCTION: PLANNING Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Licenses, Permits & Fines $ 1,570 $ 1,315 $ 1,000 $ 1,000 0% Charges for Current Services 16,700 (1,860) 2,000 1,000 -50% 18,270 (545)3,000 2,000 -33.33% Expenditures Salaries and Wages $ 128,128 $ 133,231 $ 138,676 $ 121,278 -12.55% Fringe Benefits 39,909 34,658 37,173 45,476 22.34% Professional & Technical Services 36,952 35,208 25,000 - -100% Utilities and Maintenance 164 164 200 - -100% Operations 4,219 5,360 16,725 17,500 4.63% City Support Services 1,164 1,267 1,261 1,339 6.19% Supplies and Materials 759 202 1,500 1,000 -33.33% 211,295 210,090 220,535 186,593 -15.39% Reimbursed Expenditures City Support Services $ (20,000) $ (20,000) $ (15,751) $ (15,751)0% (20,000)(20,000)(15,751)(15,751)0% Net Total Expenditures 191,295 190,090 204,784 170,842 -16.57% Indirectly Funded Amount 173,025 190,635 201,784 168,842 -16.33% The Planning and Economic Development Department is made up of three programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 120 CITY OF HOPKINS FUNCTION: Planning and Zoning PROGRAM: Zoning Activities, Planning & Enforcement PROGRAM SUMMARY: The Zoning Activities & Enforcement Program of the Planning & Economic Development Department provides administration and enforcement of locally approved Zoning Ordinance and Comprehensive Plan. Provides administration and inspection of signs and fences and prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue implementing the new zoning code 2.2. Process land use, sign and fence permit application, and respond to customer’s needs in a timely manner 3. Provide staff assistance to Planning Commission & expertise to the City Council FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 1,570 $ 1,315 $ 1,000 $ 1,000 0% Charges for Current Services 16,700 (1,860) 2,000 1,000 -50% 18,270 (545)3,000 2,000 -33.33% Expenditures Salaries and Wages $ 128,128 $ 133,231 $ 138,676 $ 121,278 -12.55% Fringe Benefits 39,909 34,658 37,173 45,476 22.34% Professional & Technical Services 36,952 35,208 25,000 --100% Utilities and Maintenance 164 164 200 --100% Operations 4,219 5,360 16,725 17,500 4.63% City Support Services (18,836)(18,733)(14,490)(14,412)-0.54% Supplies and Materials 759 202 1,500 1,000 -33.33% 191,295 190,090 204,784 170,842 -16.57% NET TAX AND GENERAL REVENUE SUPPORTED 173,025 190,635 201,784 168,842 -16.33% PERSONNEL: Number of FTE Positions 1.35 1.35 1.35 1.35 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Estimated Market Value of Median Value Home $ 291,000 $ 315,000 $ 330,000 $ 361,000 Estimated Market Value of Vacant Land (in millions)9.5 7.3 7.5 14.1 Increase in Total Market Value 6.1%4.0%3.0%3.0% FUND 101 – GENERAL FUND 121 CITY OF HOPKINS FUNCTION: COMMUNITY DEVELOPMENT Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Expenditures Salaries and Wages $ 79,140 $ 80,329 $ 83,838 $ 89,064 6.23% Fringe Benefits 27,186 22,789 27,393 30,078 9.8% Professional & Technical Services 1,331 569 2,500 2,500 0% Operations 1,205 2,158 3,750 3,750 0% City Support Services 392 428 430 456 6.05% Supplies and Materials 1,042 529 800 1,000 25% 110,296 106,802 118,711 126,848 6.85% Indirectly Funded Amount 110,296 106,802 118,711 126,848 6.85% The Community Deveopment budget accounts for expenditures used to promote and enhance the community of Hopkins. 122 CITY OF HOPKINS FUNCTION: Community Development PROGRAM: Community Development PROGRAM SUMMARY: Promotion and development of housing programs and activities for City property owners and residents. Staff support of housing programs such as 1st Time Home Buyer Mortgage Program, Image Awards, Housing Improvement Areas and Livable Communities Program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue promotion and support of various housing programs and initiatives 2. Investigate and prepare funding application for redevelopment projects from sources including Hennepin County Transit Orientated Development (TOD) program and Met Council Livable Communities Demonstration Account. 3. Continue to be a City of Hopkins representative to Hopkins Apartment Managers’ Association, Southwest Light Rail Transit Technical Implementation Committee, Blake Road Corridor Collaborative, Hopkins Business & Civic Association, School & Community Partnerships and other collaborative efforts FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 79,140 $ 80,329 $ 83,838 $ 89,064 6.23% Fringe Benefits 27,186 22,789 27,393 30,078 9.8% Professional & Technical Services 1,331 569 2,500 2,500 0% Operations 1,205 2,158 3,750 3,750 0% City Support Services 392 428 430 456 6.05% Supplies and Materials 1,042 529 800 1,000 25% 110,296 106,802 118,711 126,848 6.85% NET TAX AND GENERAL REVENUE SUPPORTED 110,296 106,802 118,711 126,848 6.85% PERSONNEL: Number of FTE Positions 0.85 0.85 0.85 0.85 FUND 101 – GENERAL FUND 123 CITY OF HOPKINS FUNCTION: STATE CHEMICAL ASSESSMENT Revnues and Expenditures Special Revenue Fund 203 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 59,248 $ 74,236 $ - $ - 0% Other Revenues - - 65,000 65,000 0% Total Revenues $ 59,248 $ 74,236 $ 65,000 $ 65,000 0% Expenditures Salaries and Wages $ 25,750 $ 26,393 $ 38,752 $ 38,752 0% Fringe Benefits 1,027 1,239 - - 0% Professional & Technical Services 229 4,427 2,150 2,150 0% Utilities and Maintenance 7,050 3,433 5,141 5,141 0% Operations 8,483 24,314 10,623 10,623 0% City Support Services 2,556 3,120 1,994 1,994 0% Supplies and Materials 17,453 9,624 6,340 6,340 0% Equipment Allocation - 585 - - 0% Total Expenditures $ 62,548 $ 73,135 $ 65,000 $ 65,000 0% Excess (deficiency) of revenues over expenditures 3,300 (1,101) - - 0% 124 CITY OF HOPKINS FUNCTION: State Chemical Assessment Team PROGRAM: State Chemical Assessment Team PROGRAM SUMMARY: The State Chemical Assessment Team program provides emergency response for assessment of chemical hazards for the State of Minnesota and maintenance of state owned equipment for emergency response and training of personnel. Responding as requested by the State Duty Officer to the counties of Hennepin, Scott, Carver, McLeod and Renville. The State of Minnesota will reimburse the City for up to $60,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. To continue to train to members on all aspects of chemical response. 2. Prepare the team to respond to all types of emergencies, including hazardous materials and civil unrest. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 59,248 $ 74,236 $- $-0% Other Revenues - - 65,000 65,000 0% 59,248 74,236 65,000 65,000 0% Expenditures Salaries and Wages $ 25,750 $ 26,393 $ 38,752 $ 38,752 0% Fringe Benefits 1,027 1,239 - - 0% Professional & Technical Services 229 4,427 2,150 2,150 0% Utilities and Maintenance 7,050 3,433 5,141 5,141 0% Operations 8,483 24,314 10,623 10,623 0% City Support Services 2,556 3,120 1,994 1,994 0% Supplies and Materials 17,453 9,624 6,340 6,340 0% Equipment Allocation -585 - - 0% 62,548 73,135 65,000 65,000 0% NET TAX AND GENERAL REVENUE SUPPORTED 3,300 (1,101) - - 0% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 203 – CHEMICAL ASSESSMENT TEAM FUND 125 CITY OF HOPKINS FUNCTION: ECONOMIC AND COMMUNITY DEVELOPMENT Revenues and Expenditures Special Revenue Fund 204 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 366,967 $ 377,726 $ 391,302 $ 451,531 15.39% Intergovernmental Revenue 133,749 - - - 0% Licenses, Permits & Fines 164,962 31,570 100,000 100,000 0% Charges for Current Services 399,960 533,876 - - 0% Interest on Investments 6,698 5,046 - - 0% Other Revenues 73,442 7,226 - - 0% Total Revenues $ 1,145,778 $ 955,444 $ 491,302 $ 551,531 12.26% Expenditures Salaries and Wages $ 187,342 $ 190,619 $ 203,793 $ 219,692 7.8% Fringe Benefits 72,495 65,718 71,272 75,205 5.52% Professional & Technical Services 66,044 52,614 80,050 101,186 26.4% Utilities and Maintenance 768 758 1,150 1,000 -13.04% Operations 256,432 13,823 117,100 23,386 -80.03% City Support Services 20,353 27,089 35,507 35,567 0.17% Supplies and Materials 405,063 565,676 3,200 3,200 0% Other Financing Uses 30,000 30,000 30,000 60,000 100% Total Expenditures $ 1,038,497 $ 946,297 $ 542,072 $ 519,236 -4.21% Reimbursed Expenditures City Support Services $ (40,000) $(40,000) $ (40,000) $ - -100% Total Reimbursed Expenditures $ (40,000) $(40,000) $ (40,000) $ - -100% Net Total Expenditures $ 998,497 $ 906,297 $ 502,072 $ 519,236 3.42% Excess (deficiency) of revenues over expenditures (147,281)(49,147) 10,770 (32,295) -399.86% 126 CITY OF HOPKINS FUNCTION: Economic Development PROGRAM: Project Development and Coordination PROGRAM SUMMARY: Undertake development activities not directly funded by specific project budgets. Meet with developers, property owners and business tenants to review possible redevelopment/development activities. Recruit desirable businesses to locate in Hopkins. Explore developer incentives aimed at promoting sustainability and active living. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Property Taxes $ 366,967 $ 377,726 $ 391,302 $ 451,531 15.39% Intergovernmental Revenue 42,537 - - - 0% Licenses, Permits & Fines 164,962 31,570 100,000 100,000 0% Charges for Current Services 399,960 533,831 - - 0% Interest on Investments 6,698 5,046 - - 0% Other Revenues (1,558) 7,226 - - 0% 979,566 955,399 491,302 551,531 12.26% Expenditures Salaries and Wages $ 87,000 $ 85,958 $ 94,166 $ 101,577 7.87% Fringe Benefits 34,435 29,721 33,222 35,076 5.58% Professional & Technical Services 53,945 43,653 35,200 26,200 -25.57% Utilities and Maintenance 768 758 1,150 1,000 -13.04% Operations 5,421 5,295 7,100 10,236 44.17% City Support Services 8,259 10,558 14,311 14,339 0.2% Supplies and Materials 405,063 565,676 3,200 3,200 0% Other Financing Uses - - - 30,000 0% 594,891 741,619 188,349 221,628 17.67% NET TAX AND GENERAL REVENUE SUPPORTED (384,675)(213,780)(302,953)(329,903)8.9% PERSONNEL: Number of FTE Positions 0.95 0.95 0.95 0.95 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Offer Commercial Façade Grant Program 2. Promote Hopkins to development/business community 3. Facilitate redevelopment projects as direct by the City Council FUND 204 - ECONOMIC DEVELOPMENT FUND 127 CITY OF HOPKINS FUNCTION: Economic Development PROGRAM: Tax Increment Financing Program PROGRAM SUMMARY: Undertake miscellaneous development activities funded through tax increment districts. Administer all districts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Ensure districts are meeting legal and statutory requirements 2. Continue to monitor all districts 3. Coordinate development activities within districts FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 55,995 $ 58,283 $ 60,854 $ 65,605 7.81% Fringe Benefits 20,655 19,374 20,621 21,778 5.61% Professional & Technical Services 2,133 2,149 2,000 2,986 49.3% Operations 6 - - - 0% City Support Services (33,815)(31,594)(28,838) 11,183 -138.78% 44,974 48,212 54,637 101,552 85.87% NET TAX AND GENERAL REVENUE SUPPORTED 44,974 48,212 54,637 101,552 85.87% PERSONNEL: Number of FTE Positions 0.55 0.55 0.55 0.55 FUND 204 - ECONOMIC DEVELOPMENT FUND 128 CITY OF HOPKINS FUNCTION: Economic Development PROGRAM: Community Development Activity PROGRAM SUMMARY: Promote the City of Hopkins by building on assets, including the small town feel, walkability and Hopkins as a destination. Explore ways to enhance the sense of place through public art and directional signage. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Develop a marketing strategy that supports business, education and the arts 2. Support Hopkins Artstreet 3. Work with business community to respond to unique needs and challenges brought on by COVID-19 FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 3,000 $- $- $-0% Charges for Current Services -45 -- 0% Other Revenues 75,000 -- - 0% 78,000 45 - - 0% Expenditures Salaries and Wages $ 44,347 $ 46,378 $ 48,773 $ 52,510 7.66% Fringe Benefits 17,405 16,623 17,429 18,351 5.29% Professional & Technical Services 9,818 6,812 42,850 72,000 68.03% Operations 156,005 8,528 110,000 13,150 -88.05% City Support Services 5,909 8,125 10,034 10,045 0.11% Other Financing Uses 30,000 30,000 30,000 30,000 0% 263,484 116,466 259,086 196,056 -24.33% NET TAX AND GENERAL REVENUE SUPPORTED 185,484 116,421 259,086 196,056 -24.33% PERSONNEL: Number of FTE Positions 0.5 0.5 0.5 1.0 FUND 204 - ECONOMIC DEVELOPMENT FUND 129 CITY OF HOPKINS FUNCTION: TIF DISTRICT 1-2 Revenues and Expenditures Special Revenue Fund 211 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Expenditures Professional & Technical Services $ 702 $ 270 $ 1,000 $ 8,000 700% City Support Services 2,000 243 2,000 2,000 0% Debt Repayment 6,698 5,046 6,046 6,046 0% Total Expenditures $ 9,400 $ 5,559 $ 9,046 $ 16,046 77.38% Excess (deficiency) of revenues over expenditures 9,400 5,559 9,046 16,046 77.38% 130 CITY OF HOPKINS FUNCTION: Tax Increment Financing PROGRAM: Redevelopment within Central Business District PROGRAM SUMMARY: Redevelopment activity of property in the Central Business District (CBD), north and south of Mainstreet between 11th and 12th Avenues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Professional & Technical Services $ 702 $ 270 $ 1,000 $ 8,000 700% City Support Services 2,000 243 2,000 2,000 0% Debt Repayment 6,698 5,046 6,046 6,046 0% 9,400 5,559 9,046 16,046 77.38% NET TAX AND GENERAL REVENUE SUPPORTED 9,400 5,559 9,046 16,046 77.38% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 211 – TAX INCREMENT DISTRICT 1-2 FUND 131 CITY OF HOPKINS FUNCTION: PARKING Revenues and Expenditures Special Revenue Fund 214 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 4,291 $ - $ - $ - 0% Licenses, Permits & Fines 13,394 12,507 20,000 10,000 -50% Charges for Current Services 96,338 80,634 110,000 133,000 20.91% Total Revenues $ 114,023 $ 93,141 $ 130,000 $ 143,000 10% Expenditures Salaries and Wages $ 72,343 $ 74,296 $ 73,979 $ 71,853 -2.87% Fringe Benefits 34,664 32,310 35,945 35,644 -0.84% Professional & Technical Services 17,718 12,252 6,150 6,150 0% Utilities and Maintenance 13,219 13,141 11,750 10,750 -8.51% Operations 332 695 750 750 0% City Support Services 23,340 26,639 31,856 31,863 0.02% Supplies and Materials 917 2,611 1,600 1,600 0% Total Expenditures $ 162,533 $ 161,944 $ 162,030 $ 158,610 -2.11% Excess (deficiency) of revenues over expenditures 48,510 68,803 32,030 15,610 -51.26% The Parking Fund records the receipt of parking permits and parking fines. The revenues are used to offset the maintenance cost of the parking lots and parking ramp and to fund the parking enforcement officer. 132 CITY OF HOPKINS FUND 214 – PARKING FUND FUNCTION: Parking PROGRAM: Parking Enforcement PROGRAM SUMMARY: Manage and enforce parking rules and regulations. Ensure that parking is available for customers and parking rules are followed. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Licenses, Permits & Fines $ 13,394 $ 12,507 $ 20,000 $ 10,000 -50% 13,394 12,507 20,000 10,000 -50% Expenditures Salaries and Wages $ 45,599 $ 46,390 $ 47,193 $ 49,055 3.95% Fringe Benefits 23,051 21,472 24,040 24,929 3.7% Professional & Technical Services 75 279 75 75 0% Utilities and Maintenance 1,814 1,951 1,250 1,250 0% Operations 332 695 750 750 0% City Support Services 10,124 10,653 14,744 14,942 1.34% Supplies and Materials 723 503 600 600 0% 81,718 81,943 88,652 91,601 3.33% NET TAX AND GENERAL REVENUE SUPPORTED 68,324 69,436 68,652 81,601 18.86% PERSONNEL: Number of FTE Positions 0.0725 0.0725 0.0725 0.0725 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Monitor the effects of current parking enforcement efforts and recommend changes as needed. 2. Continue to accurately account for fine revenues that result from parking enforcement. 133 CITY OF HOPKINS FUND 214 – PARKING FUND FUNCTION: Parking PROGRAM: Parking Operations PROGRAM SUMMARY: Implement and manage parking recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 4,291 $- $- $-0% Charges for Current Services 96,338 80,634 110,000 133,000 20.91% 100,629 80,634 110,000 133,000 20.91% Expenditures Salaries and Wages $ 26,744 $ 27,906 $ 26,786 $ 22,798 -14.89% Fringe Benefits 11,613 10,838 11,905 10,715 -10% Professional & Technical Services 958 2,573 1,075 1,075 0% City Support Services 546 1,166 1,870 1,876 0.32% Supplies and Materials 52 53 - - 0% 39,913 42,536 41,636 36,464 -12.42% NET TAX AND GENERAL REVENUE SUPPORTED (60,716)(38,098)(68,364)(96,536)41.21% PERSONNEL: Number of FTE Positions 0.4 0.4 0.4 0.4 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Inspect and maintain parking ramp as needed. 2. Complete ramp condition assessment and revise long-range plan. 134 CITY OF HOPKINS FUND 214 – PARKING FUND FUNCTION: Parking PROGRAM: Parking Ramp PROGRAM SUMMARY: Proper handling of all matters related to the operation and administration of the leased parking system for the ramp. Implement recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Professional & Technical Services $ 16,685 $ 9,400 $ 5,000 $ 5,000 0% Utilities and Maintenance 11,405 11,190 10,500 9,500 -9.52% City Support Services 12,670 14,820 15,242 15,045 -1.29% Supplies and Materials 142 2,055 1,000 1,000 0% 40,902 37,465 31,742 30,545 -3.77% NET TAX AND GENERAL REVENUE SUPPORTED 40,902 37,465 31,742 30,545 -3.77% PERSONNEL: Number of FTE Positions 0 0 0 0 135 CITY OF HOPKINS FUNCTION: HOPKINS RACE & EQUITY INITATIVE Revenues and Expenditures Special Revenue Fund 216 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Other Revenues $ 7,275 $ 4,000 $ 6,000 $ 6,000 0% Total Revenues $ 7,275 $ 4,000 $ 6,000 $ 6,000 0% Expenditures Professional & Technical Services $ 1,514 $ 4 $ 1,500 $ 1,500 0% Operations 4,000 1,500 4,500 4,500 0% Supplies and Materials - 129 - - 0% Total Expenditures $ 5,514 $ 1,633 $ 6,000 $ 6,000 0% Excess (deficiency) of revenues over expenditures (1,761)(2,367) - - 0% “Is White Privilege Real or Imagined” community conversation 136 CITY OF HOPKINS FUNCTION: Hopkins Race & Equity Initiative PROGRAM: Hopkins Race & Equity Initiative PROGRAM SUMMARY: The Hopkins Race and Equity Initiative is a collaborative effort creating opportunities to increase awareness and understanding of race, equity and diversity and promoting a sense of community that welcomes and values all residents. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to host community events to promote race equity. 2. Continue relationships with the Joint Community Policing Program, Multicultural Advisory Committee and the Government Alliance on Racial Equity. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Other Revenues $ 7,275 $ 4,000 $ 6,000 $ 6,000 0% 7,275 4,000 6,000 6,000 0% Expenditures Professional & Technical Services $ 1,514 $ 4 $ 1,500 $ 1,500 0% Operations 4,000 1,500 4,500 4,500 0% Supplies and Materials -129 - - 0% 5,514 1,633 6,000 6,000 0% NET TAX AND GENERAL REVENUE SUPPORTED (1,761)(2,367) - - 0% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 216 – HOPKINS RACE & EQUITY INITATIVE FUND (HREI) 137 CITY OF HOPKINS FUNCTION: COMMUNICATIONS Revenues and Expenditures Special Revenue Fund 217 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 21,295 $ - $ - $ - 0% Charges for Current Services - 79 - - 0% Franchise Fees 220,202 216,584 240,000 233,000 -2.92% Total Revenues $ 241,497 $ 216,663 $ 240,000 $ 233,000 -2.92% Expenditures Salaries and Wages $ 90,028 $ 91,883 $ 114,254 $ 122,441 7.17% Fringe Benefits 37,742 34,773 38,674 40,630 5.06% Professional & Technical Services 29,426 38,817 17,250 30,521 76.93% Utilities and Maintenance 1,101 1,000 900 900 0% Operations 20,259 33,758 25,750 37,478 45.55% City Support Services 13,995 15,767 17,892 18,126 1.31% Supplies and Materials 442 202 3,725 - -100% Equipment Allocation - - 3,500 3,500 0% Other Financing Uses 50,000 50,000 50,000 40,000 -20% Total Expenditures $ 242,993 $ 266,200 $ 271,945 $ 293,596 7.96% Excess (deficiency) of revenues over expenditures 1,496 49,537 31,945 60,596 89.69% The Communication Fund (formerly known as the Cable fund) records the City's share of a five city joint venture cable TV franchise administered under theSouthwest Suburban Cable Commision. 138 CITY OF HOPKINS FUNCTION: Communications PROGRAM: Communication PROGRAM SUMMARY: Provide two-way communication between the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: Communications: 1. Promote City events, large and small. 2. Work on engaging and reaching all community members. Newsletters: 3. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. 4. Increase newsletter distribution to rental properties. Web and Messaging: 5. City Goal 1, Explore improved service delivery through e-commerce: 6. Increase interactivity on web site through one or more of the following: Update website to make more accessible for all. Customer Response system. Ability to fill out forms on the website. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 21,295 $- $- $-0% Charges for Current Services -79 -- 0% Franchise Fees 220,202 216,584 240,000 233,000 -2.92% 241,497 216,663 240,000 233,000 -2.92% Expenditures Salaries and Wages $ 90,028 $ 91,883 $ 114,254 $ 122,441 7.17% Fringe Benefits 37,742 34,773 38,674 40,630 5.06% Professional & Technical Services 29,426 38,817 17,250 30,521 76.93% Utilities and Maintenance 1,101 1,000 900 900 0% Operations 20,259 33,758 25,750 37,478 45.55% City Support Services 13,995 15,767 17,892 18,126 1.31% Supplies and Materials 442 202 3,725 --100% Equipment Allocation - - 3,500 3,500 0% Other Financing Uses 50,000 50,000 50,000 40,000 -20% 242,993 266,200 271,945 293,596 7.96% NET TAX AND GENERAL REVENUE SUPPORTED 1,496 49,537 31,945 60,596 89.69% PERSONNEL: Number of FTE Positions 1 1 1 1 FUND 217 – COMMUNICATIONS FUND 139 CITY OF HOPKINS FUNCTION: DEPOT COFFEE HOUSE Revenue and Expenditures Special Revenue Fund 219 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 23,673 $ 19,500 $ 19,500 $ 19,500 0% Charges for Current Services 140,387 123,964 194,669 188,224 -3.31% Other Revenues 19,904 20,025 20,000 20,500 2.5% Inter-Fund Transfers 20,000 20,000 20,000 20,000 0% Total Revenues $ 203,964 $ 183,489 $ 254,169 $ 248,224 -2.34% Expenditures Salaries and Wages $ 112,341 $ 119,309 $ 128,289 $ 130,112 1.42% Fringe Benefits 46,644 33,572 44,070 51,317 16.44% Professional & Technical Services 12,930 11,331 9,250 10,250 10.81% Utilities and Maintenance 10,398 9,174 9,050 8,850 -2.21% Operations 3,655 7,034 5,065 4,750 -6.22% City Support Services 2,400 9,198 2,695 2,645 -1.86% Supplies and Materials 43,697 38,105 55,750 55,300 -0.81% Total Expenditures $ 232,065 $ 227,723 $ 254,169 $ 263,224 3.56% Excess (deficiency) of revenues over expenditures 28,101 44,234 - 15,000 0% The Depot Coffee House Fund accounts for the operations of the Youth Center, a chemical free environment for area teens to socialize and the operations of the Coffee House which provides a service to the Youth and those on the regional trail system. 140 CITY OF HOPKINS FUNCTION: Depot Coffee House PROGRAM: Depot Youth Project PROGRAM SUMMARY: Depot Mission To provide a place of community and learning in which student involvement and youth development are encouraged in a chemically-free environment Depot Youth Project staffing and programs are funded primarily through admission fees, rentals, gifts and grants. The Depot programs are intended to offer area youth creativity and leadership opportunities, strengthen youth involvement in community activities, and nurture their growth and development as citizens through interaction with peers, the public, and community partners. The Depot Board and The Partners Advisory Team, consisting of students, community members, community business partners, City, Hopkins School District, Depot Youth Foundation and Three Rivers Park District representatives, guide and support site and programming decisions.. The facility/grounds serve as a Trailhead for Three Rivers Park District and the coffee house which operates 7 days a week is an amenity enjoyed by local residents as well as trail riders/walkers. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 19,500 $ 19,500 $ 19,500 $ 19,500 0% Charges for Current Services 51,659 54,667 53,400 53,400 0% Other Revenues 19,904 20,025 20,000 20,500 2.5% Inter-Fund Transfers 20,000 20,000 20,000 20,000 0% 111,063 114,192 112,900 113,400 0.44% Expenditures Salaries and Wages $ 67,596 $ 73,330 $ 76,289 $ 78,112 2.39% Fringe Benefits 35,655 30,663 34,365 35,857 4.34% Professional & Technical Services 2,305 2,426 250 1,250 400% Utilities and Maintenance 10,130 9,174 8,800 8,600 -2.27% Operations 3,061 6,459 3,915 3,600 -8.05% City Support Services 2,400 2,680 2,695 2,645 -1.86% Supplies and Materials 1,268 585 450 --100% 122,415 125,317 126,764 130,064 2.6% NET TAX AND GENERAL REVENUE SUPPORTED 11,352 11,125 13,864 16,664 20.2% PERSONNEL: Number of FTE Positions 1.0 1.0 1.0 1.0 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Sustain welcoming and chemical free venue for community youth and other gatherings. 2. Continue staffing 2 – 3 night a week year -round youth events programming at the Depot. 3. Support additional youth-initiated projects. 4. Provide learning lab for Business/Marketing classes at Hopkins High School. 5. Promote partnerships with the Depot in the community, with area students, and youth allies. 6. Create new youth learning opportunities with Coffee Operations staff. 7. Provide workplace training and employment opportunities for youth. FUND 219 - DEPOT COFFEE HOUSE FUND 141 CITY OF HOPKINS FUNCTION: Depot Coffee House PROGRAM: Depot Coffee Ops PROGRAM SUMMARY: The coffee shop is a natural adjunct to the youth programming at the Depot and provides actual sustenance for youth patrons and the wider community as well as employment and training opportunities for youth. . MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to provide organic fair-trade coffee drinks, locally sourced snacks and hand-crafted baked goods, sandwiches, salads, and soups for youth and adult patrons. 2. Provide barista/customer service training and supervision for youth volunteers and employees. 3. Provide learning lab for Marketing/Business students at Hopkins High School. 4. Offer food choices as well as repair and small merchandise items for biking/trail patrons of the Depot. 5. Develop catering menu and business for youth to operate. 6. Develop food service partnership with Hopkins Activity Center. 7. Update prices to increase revenue and remain competitive in marketplace. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 19,500 $ 19,500 $ 19,500 $ 19,500 0% Charges for Current Services 51,659 54,667 53,400 53,400 0% Other Revenues 19,904 20,025 20,000 20,500 2.5% Inter-Fund Transfers 20,000 20,000 20,000 20,000 0% 111,063 114,192 112,900 113,400 0.44% Expenditures Salaries and Wages $ 67,596 $ 73,330 $ 76,289 $ 78,112 2.39% Fringe Benefits 35,655 30,663 34,365 35,857 4.34% Professional & Technical Services 2,305 2,426 250 1,250 400% Utilities and Maintenance 10,130 9,174 8,800 8,600 -2.27% Operations 3,061 6,459 3,915 3,600 -8.05% City Support Services 2,400 2,680 2,695 2,645 -1.86% Supplies and Materials 1,268 585 450 --100% 122,415 125,317 126,764 130,064 2.6% NET TAX AND GENERAL REVENUE SUPPORTED 11,352 11,125 13,864 16,664 20.2% PERSONNEL: Number of FTE Positions 3.25 3.25 3.5 3.5 FUND 219 - DEPOT COFFEE HOUSE FUND 142 CITY OF HOPKINS FUNCTION: TIF DISTRICT 2-11 Revenues and Expenditures Special Revenue Fund 231 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Tax Increment $ 2,522,880 $ 2,947,720 $ 2,350,000 $ 2,800,000 19.15% Total Revenues $ 2,522,880 $ 2,947,720 $ 2,350,000 $ 2,800,000 19.15% Expenditures Professional & Technical Services $ 27,797 $ 33,175 $ 50,000 $ 50,000 0% City Support Services 47,440 37,955 - 32,000 0% Supplies and Materials 250 - - - 0% Other Financing Uses 1,383,300 1,383,300 1,400,000 2,818,000 101.29% Total Expenditures $ 1,458,787 $ 1,454,430 $ 1,450,000 $ 2,900,000 100% Excess (deficiency) of revenues over expenditures (1,064,093) (1,493,290)(900,000) 100,000 -111.11% The Tax Increment District 2-11 fund is the SuperValu and Super Value North Annex redevelopment. This fund records the use of tax increments and bond proceeds. 143 CITY OF HOPKINS FUND 231 – TAX INCREMENT 2-11 FUND FUNCTION: Tax Increment Financing PROGRAM: Redevelopment Area – North Annex Property PROGRAM SUMMARY: Coordinate and review development and redevelopment activity. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go financing to developer as scheduled. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Tax Increment $ 2,522,880 $ 2,947,720 $ 2,350,000 $ 2,800,000 19.15% 2,522,880 2,947,720 2,350,000 2,800,000 19.15% Expenditures Professional & Technical Services $ 27,797 $ 33,175 $ 50,000 $ 50,000 0% City Support Services 47,440 37,955 -32,000 0% Supplies and Materials 250 - - - 0% Other Financing Uses 1,383,300 1,383,300 1,400,000 2,818,000 101.29% 1,458,787 1,454,430 1,450,000 2,900,000 100% NET TAX AND GENERAL REVENUE SUPPORTED (1,064,093)(1,493,290)(900,000) 100,000 -111.11% PERSONNEL: Number of FTE Positions 0 0 0 0 Super Valu Development Excelsior Crossings Development 144 CITY OF HOPKINS FUNCTION: 5TH AVENUE FLATS Revenues and Expenditures Special Revenue Fund 232 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Expenditures Professional & Technical Services $ 98 $ - $ - $ - 0% City Support Services 3,500 53 - - 0% Total Expenditures $ 3,598 $ 53 $ - $ - 0% Excess (deficiency) of revenues over expenditures 3,598 53 - - 0% 5th Avenue Flats is a redevelopment of a block within the downtown district. The fund records the costs and reimbusement of project expenses. 145 Proposed Fifth Avenue Flats project CITY OF HOPKINS FUNCTION: Tax Increment Financing PROGRAM: Redevelopment Area –6th & Mainstreet PROGRAM SUMMARY: Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Work with developer on project implementation. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Professional & Technical Services $ 98 $- $- $-0% City Support Services 3,500 53 -- 0% 3,598 53 - - 0% NET TAX AND GENERAL REVENUE SUPPORTED 3,598 53 - - 0% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 232 – 5TH AVENUE 146 CITY OF HOPKINS FUNCTION: TIF 1-4 MARKETPLACE II Revenues and Expenditures Special Revenue Fund 233 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Tax Increment $ 207,297 $ 224,903 $ 205,000 $ 225,000 9.76% Total Revenues $ 207,297 $ 224,903 $ 205,000 $ 225,000 9.76% Expenditures Professional & Technical Services $ 266 $ 112 $ 2,500 $ 2,500 0% City Support Services 3,000 2,379 3,910 3,910 0% Other Financing Uses 195,333 211,622 195,000 209,418 7.39% Total Expenditures $ 198,599 $ 214,113 $ 201,410 $ 215,828 7.16% Excess (deficiency) of revenues over expenditures (8,698)(10,790)(3,590)(9,172) 155.49% The Tax Increment District 1-4 Fund is the redevelopment of several blocks of the downtown business district into a housing and retail development. This fund records the tax increment revenues. 147 CITY OF HOPKINS FUNCTION: Tax Increment Financing PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY: Redevelopment of property between 6th and 8th Avenues into mixed-use apartment, townhome & retail development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go financing to developer as scheduled. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Tax Increment $ 207,297 $ 224,903 $ 205,000 $ 225,000 9.76% 207,297 224,903 205,000 225,000 9.76% Expenditures Professional & Technical Services $ 266 $ 112 $ 2,500 $ 2,500 0% City Support Services 3,000 2,379 3,910 3,910 0% Other Financing Uses 195,333 211,622 195,000 209,418 7.39% 198,599 214,113 201,410 215,828 7.16% NET TAX AND GENERAL REVENUE SUPPORTED (8,698)(10,790)(3,590)(9,172)155.49% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 233 – TAX INCREMENT 1-4 FUND 148 CITY OF HOPKINS FUNCTION: TIF 1-5 MOLINE Revenues and Expenditures Special Revenue Fund 234 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Tax Increment $ 1,021,720 $ 1,010,181 $ 1,015,000 $ 1,015,000 0% Inter-Fund Transfers - - - 1,500,000 0% Total Revenues $ 1,021,720 $ 1,010,181 $ 1,015,000 $ 2,515,000 147.78% Expenditures Professional & Technical Services $ - $ 225 $ 2,000 $ 2,000 0% City Support Services - 11,946 18,101 18,101 0% Other Financing Uses 919,548 909,163 924,000 2,467,786 167.08% Total Expenditures $ 919,548 $ 921,334 $ 944,101 $ 2,487,887 163.52% Excess (deficiency) of revenues over expenditures (102,172)(88,847)(70,899)(27,113) -61.76% The Tax Increment District 1-5 Fund is the redevelopment of the Johnson Building into an luxury apartment building than will help connect a future light rail station to historic downtown Hopkins. This fund records the tax increment revenues beginning in 2019. 149 CITY OF HOPKINS PROGRAM: Moline Redevelopment Project PROGRAM SUMMARY Redevelopment of Johnson Building into luxury apartments. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go financing to developer as scheduled. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Tax Increment $ 1,021,720 $ 1,010,181 $ 1,015,000 $ 1,015,000 0% Inter-Fund Transfers - - - 1,500,000 0% 1,021,720 1,010,181 1,015,000 2,515,000 147.78% Expenditures Professional & Technical Services $- $ 225 $ 2,000 $ 2,000 0% City Support Services -11,946 18,101 18,101 0% Other Financing Uses 919,548 909,163 924,000 2,467,786 167.08% 919,548 921,334 944,101 2,487,887 163.52% NET TAX AND GENERAL REVENUE SUPPORTED (102,172)(88,847)(70,899)(27,113)-61.76% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 234 – TAX INCREMENT 1-5 FUND 150 CITY OF HOPKINS FUNCTION: ARTS CENTER Revenues and Expenditures Special Revenue Fund 250 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 323,869 $ 331,694 $ 339,317 $ 347,697 2.47% Intergovernmental Revenue 230,254 46,808 32,000 32,000 0% Charges for Current Services 371,308 470,356 615,632 681,435 10.69% Other Revenues 397 13,751 20,500 23,000 12.2% Inter-Fund Transfers 80,000 80,000 80,000 80,000 0% Total Revenues $ 1,005,828 $ 942,609 $ 1,087,449 $ 1,164,132 7.05% Expenditures Salaries and Wages $ 304,821 $ 315,750 $ 364,965 $ 400,615 9.77% Fringe Benefits 102,020 116,824 95,882 112,063 16.88% Professional & Technical Services 123,004 62,112 224,800 37,050 -83.52% Utilities and Maintenance 101,007 65,802 82,700 82,500 -0.24% Operations 49,966 66,011 110,350 57,800 -47.62% City Support Services 10,668 11,805 11,633 11,669 0.31% Supplies and Materials 18,442 41,511 34,500 240,000 595.65% Equipment Allocation 159,989 - 102,628 162,435 58.28% Total Expenditures $ 869,917 $ 679,815 $ 1,027,458 $ 1,104,132 7.46% Excess (deficiency) of revenues over expenditures (135,911)(262,794)(59,991)(60,000) 0.02% The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 151 CITY OF HOPKINS FUNCTION: Arts Center PROGRAM: Facility Operations and Programming & Promotions Building Community through the Arts by fostering creative expression and providing artistic and educational opportunities for people of all ages. PROGRAM SUMMARY: The Hopkins Center for the Arts is a premiere cultural and artistic destination drawing over 215,000 visitors annually. Its amenities include a 715 seat theater, black-box theater, art gallery, dance studio, classroom, meeting and multipurpose spaces. The Center provides artistic and educational opportunities for people of all ages and abilities, including a concert series of local and national artists, exhibits that are free and open to the public, and ArtStreet, the public art sculpture program. It is also home to tenant partners – Stages Theatre Company and the Hopkins School District. Hopkins Center for the Arts earns revenue through tenant leases, rentals, admission fees, gifts and grants. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to build relationships in our community and collaborate with tenants, partners, businesses and residents to meet City Strategic Plan goals and engage a broad segment of the community. 2. Operate within a balanced budget that maximizes revenues and controls expenses, with the goal of financial sustainability. 3. Increase the fundraising capacity of the Arts Center to address operating and capital needs. 4. Build participation in Center arts activities, including concerts and exhibitions, and explore creative opportunities beyond the walls of the Center. 5. Strengthen the identity and enhance the reputation of the Hopkins Center for the Arts. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Property Taxes $ 323,869 $ 331,694 $ 339,317 $ 347,697 2.47% Intergovernmental Revenue 230,254 46,808 32,000 32,000 0% Charges for Current Services 371,308 470,356 615,632 681,435 10.69% Other Revenues 397 13,751 20,500 23,000 12.2% Inter-Fund Transfers 80,000 80,000 80,000 80,000 0% 1,005,828 942,609 1,087,449 1,164,132 7.05% Expenditures Salaries and Wages $ 304,821 $ 315,750 $ 364,965 $ 400,615 9.77% Fringe Benefits 102,020 116,824 95,882 112,063 16.88% Professional & Technical Services 123,004 62,112 224,800 37,050 -83.52% Utilities and Maintenance 101,007 65,802 82,700 82,500 -0.24% Operations 49,966 66,011 110,350 57,800 -47.62% City Support Services 10,668 11,805 11,633 11,669 0.31% Supplies and Materials 18,442 41,511 34,500 240,000 595.65% Equipment Allocation 159,989 -102,628 162,435 58.28% 869,917 679,815 1,027,458 1,104,132 7.46% NET TAX AND GENERAL REVENUE SUPPORTED (135,911)(262,794)(59,991)(60,000)0.02% PERSONNEL: Number of FTE Positions 5.66 5.50 4.25 4.25 FUND 250 – ARTS CENTER FUND 152 CITY OF HOPKINS EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses Internal Service Fund 602 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 219,216 $ 200,244 $ - $ 250,000 0% Intergovernmental Revenue 518,086 - - - 0% Charges for Current Services 1,161,536 632,614 669,755 709,940 6% Interest on Investments - - 785 9,906 1161.91% Other Revenues 263,482 48,233 15,000 116,800 678.67% OTHER FINANCING SOURCES - - 996,000 - -100% Inter-Fund Transfers 255,539 - - 220,564 0% Total Revenues $ 2,417,859 $ 881,091 $ 1,681,540 $ 1,307,210 -22.26% Expenditures Professional & Technical Services $ - $ 1,919 $ - $ - 0% City Support Services 12,666 14,174 6,333 - -100% Supplies and Materials - - 28,915 35,600 23.12% Equipment Allocation 1,440,492 472,080 1,585,229 1,701,345 7.32% Depreciation 1,443,546 699,147 700,000 800,000 14.29% Total Expenditures $ 2,896,704 $ 1,187,320 $ 2,320,477 $ 2,536,945 9.33% Excess (deficiency) of revenues over expenditures 478,845 306,229 638,937 1,229,735 92.47% The Equipment Replacement fund is an internal service fund. It accounts for the acquisition of machinery and equipment. User charges are billed to the various departments. 153 CITY OF HOPKINS PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty-year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Update 5-year Equipment Replacement Plan. 2. Analyze future needs. 3. Review revenue structure to accommodate equipment needs as identified in the long-range 20-year plan. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Property Taxes $ 219,216 $ 200,244 $- $ 250,000 0% Intergovernmental Revenue 518,086 - - - 0% Charges for Current Services 1,161,536 632,614 669,755 709,940 6% Interest on Investments - - 785 9,906 1161.91% Other Revenues 263,482 48,233 15,000 116,800 678.67% OTHER FINANCING SOURCES - - 996,000 --100% Inter-Fund Transfers 255,539 - - 220,564 0% 2,417,859 881,091 1,681,540 1,307,210 -22.26% Expenditures Professional & Technical Services $- $ 1,919 $- $-0% City Support Services 12,666 14,174 6,333 --100% Supplies and Materials - - 28,915 35,600 23.12% Equipment Allocation 1,440,492 472,080 1,585,229 1,701,345 7.32% Depreciation 1,443,546 699,147 700,000 800,000 14.29% 2,896,704 1,187,320 2,320,477 2,536,945 9.33% NET TAX AND GENERAL REVENUE SUPPORTED 478,845 306,229 638,937 1,229,735 92.47% PERSONNEL: Number of FTE Positions 0 0 0 0 FUND 602 – EQUIPMENT REPLACEMENT FUND 154 CITY OF HOPKINS FUNCTION: WATER Revenues and Expenses Enterprise Fund 703 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 21,162 $ 2,030 $ - $ - 0% Charges for Current Services 132,241 130,557 158,000 148,000 -6.33% Utility Service Charges 2,075,771 2,268,634 2,208,750 2,365,000 7.07% Other Revenues 8,888 1,195 - - 0% OTHER FINANCING SOURCES - (20,061) - - 0% Inter-Fund Transfers 60,816 - - - 0% Other Financing Uses (392,299) - - - 0% Total Revenues $ 1,906,579 $ 2,382,355 $ 2,366,750 $ 2,513,000 6.18% Expenditures Salaries and Wages $ 356,745 $ 438,073 $ 354,440 $ 422,195 19.12% Fringe Benefits 130,003 143,184 148,431 172,271 16.06% Professional & Technical Services 1,961,039 1,889,338 171,100 212,600 24.25% Utilities and Maintenance 371,240 445,961 506,500 529,000 4.44% Operations 25,631 12,521 38,200 46,450 21.6% City Support Services 245,471 283,176 283,689 284,976 0.45% Supplies and Materials 92,881 127,169 126,700 166,250 31.22% Depreciation 302,963 314,037 325,000 328,922 1.21% Debt Repayment 104,182 125,432 87,578 207,832 137.31% Other Financing Uses 465,220 159,426 322,961 257,091 -20.4% Total Expenditures $ 4,055,375 $ 3,938,317 $ 2,364,599 $ 2,627,587 11.12% Excess (deficiency) of revenues over expenditures 2,148,796 1,555,962 (2,151) 114,587 -5427.15% The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 155 CITY OF HOPKINS FUND 703 – WATER FUND FUNCTION: Water PROGRAM: Pumps & Wells and Water Distribution PROGRAM SUMMARY: The Pumps & Wells and Distribution program of the Water Utility Fund provides maintenance to the City’s water well pumping system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Produce water supply sufficient to meet the needs of 19,000 people. 2. Flush and check all hydrants annually. 3. Check all wells each day. 4. Test samples each month to ensure safe water supply. 5. Install new valves & hydrants in new construction areas. FY 2020 FY 2021 FY 2022 FY 2023 Audited Approved Approved Approved Percent 2020 2021 2022 2023 Change OPERATING REVENUES Intergovernmental Revenue $ 21,162.00 $ 2,030.00 $- $-0% Other Revenues 8,710 - - - 0% Other Financing Uses (392,299) - - - 0% Operating 2,081,997 2,280,059 2,221,750 2,368,000 6.58% Non-operating Revenues 187,009 100,266 145,000 145,000 0% 1,906,579 2,382,355 2,366,750 2,513,000 6.18% OPERATING EXPENSES Personnel Services $ 486,748.00 $ 581,257.00 $ 502,871.00 $ 594,466.00 18.21% Other Services & Charges 911,257 1,094,636 1,126,189 1,239,276 10.04% Depreciation Expense 302,963 314,037 325,000 328,922 1.21% Capital Outlay/Construction - (15,602) - - 0% Non-operating Expenses 569,402 284,858 410,539 464,923 13.25% 2,270,370 2,259,186 2,364,599 2,627,587 11.12% NET INCOME (LOSS)(363,791.00) 123,169.00 2,151.00 (114,587.00)-5427.15% PERSONNEL: Number of FTE Positions 4.79 4.15 4.95 4.95 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Gallons of safe drinking water produced (in millions) 537 584 575 575 156 CITY OF HOPKINS FUNCTION: SANITARY SEWER Revenue and Expenses Enterprise fund 707 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 1,851 $ 117 $ - $ - 0% Charges for Current Services 4,290 10,772 15,000 15,000 0% Utility Service Charges 2,922,422 3,117,316 3,198,750 3,425,000 7.07% Inter-Fund Transfers 33,309 - - - 0% Other Financing Uses (486,153) - - - 0% Total Revenues $ 2,475,719 $ 3,128,205 $ 3,213,750 $ 3,440,000 7.04% Expenditures Salaries and Wages $ 200,561 $ 229,924 $ 181,209 $ 206,677 14.05% Fringe Benefits 71,329 72,448 73,234 81,158 10.82% Professional & Technical Services 1,546,253 1,435,664 147,000 153,000 4.08% Utilities and Maintenance 1,586,470 1,618,662 1,788,942 1,955,678 9.32% Operations 2,905 6,349 21,000 24,650 17.38% City Support Services 161,887 151,816 212,568 213,675 0.52% Supplies and Materials 8,880 18,714 28,300 30,300 7.07% Depreciation 346,384 328,362 350,000 340,288 -2.77% Debt Repayment 90,594 117,733 89,691 202,372 125.63% Other Financing Uses 385,134 131,832 260,394 190,166 -26.97% Total Expenditures $ 4,400,397 $ 4,111,504 $ 3,152,338 $ 3,397,964 7.79% Excess (deficiency) of revenues over expenditures 1,924,678 983,299 (61,412)(42,036) -31.55% The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 157 CITY OF HOPKINS FUND 707 – SEWER FUND FUNCTION: Sewer PROGRAM: Lift Stations, Collection & Disposal PROGRAM SUMMARY: The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the City’s sanitary sewer lift station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer System for disposal. The Collection & Disposal program of the Sewer Utility Fund provides maintenance to the City’s sanitary sewer system. The system is comprised of sewers, manholes, and lift stations so that sewage may be transported to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Clean 33% of sanitary sewer lines in the City plus monthly checks of manholes in problem areas. 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility mapping system. 5. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 6. Repair or replace manhole cover & casting as needed. 7. Line & repair sewer mains as needed per T.V. reports, also repair of manhole structures. 8. Emergency generators maintenance program. FY 2020 FY 2021 FY 2022 FY 2023 Audited Approved Approved Approved Percent 2020 2021 2022 2023 Change OPERATING REVENUES Intergovernmental Revenue $ 1,851.00 $ 117.00 $- $-0% Interest on Investments - - - 20,000 0% Other Financing Uses (486,153) - - - 0% Operating 2,926,712 3,128,088 3,213,750 3,440,000 7.04% Non-operating Revenues 33,309 - - - 0% 2,475,719 3,128,205 3,213,750 3,460,000 7.66% OPERATING EXPENSES Personnel Services $ 271,890.00 $ 302,372.00 $ 254,443.00 $ 287,835.00 13.12% Other Services & Charges 1,853,273 1,863,671 2,197,810 2,377,303 8.17% Depreciation Expense 346,384 328,362 350,000 340,288 -2.77% Capital Outlay/Construction -15,602 - - 0% Non-operating Expenses 475,869 245,808 350,085 392,538 12.13% 2,947,416 2,755,815 3,152,338 3,397,964 7.79% NET INCOME (LOSS)(471,697.00) 372,390.00 61,412.00 62,036.00 1.02% PERSONNEL: Number of FTE Positions 2.60 2.24 2.44 2.44 PERFORMANCE MEASURES: 2020 2021 2022 2023 Key Measures:Actual Actual Estimated Projected Number of Gallons Conveyed (in millions) 629 571 597 600 158 CITY OF HOPKINS FUNCTION: REFUSE Revenues and Expenses Enterprise Fund 717 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 39,089 $ 15,394 $ 16,100 $ 18,500 14.91% Charges for Current Services 208,629 211,431 232,370 236,600 1.82% Utility Service Charges 761,167 763,676 988,500 1,004,100 1.58% Other Revenues 718 2,052 1,300 2,000 53.85% Total Revenues $ 1,009,603 $ 992,553 $ 1,238,270 $ 1,261,200 1.85% Expenditures Salaries and Wages $ 266,046 $ 385,805 $ 273,714 $ 272,799 -0.33% Fringe Benefits 99,804 93,423 114,294 105,348 -7.83% Professional & Technical Services 166,647 188,207 402,200 422,340 5.01% Utilities and Maintenance 214,247 230,439 206,600 187,790 -9.1% Operations 3,863 3,270 7,340 5,315 -27.59% City Support Services 117,906 148,332 176,683 177,567 0.5% Supplies and Materials 30,770 15,896 55,200 55,650 0.82% Equipment Allocation 79,284 138,288 - - 0% Depreciation 64,719 45,697 68,028 73,082 7.43% Other Financing Uses 25,000 25,000 25,000 25,000 0% Total Expenditures $ 1,068,286 $ 1,274,357 $ 1,329,059 $ 1,324,891 -0.31% Excess (deficiency) of revenues over expenditures 58,683 281,804 90,789 63,691 -29.85% The Refuse fund is a utlity enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 159 CITY OF HOPKINS FUNCTION: Refuse PROGRAM: Bulk Collection PROGRAM SUMMARY: The Bulk Collection program of the Refuse Utility Fund is a user fee based service that provides bulk item pickup for larger items. Pick ups are scheduled on a call-in basis and take place Thursdays throughout the year. A bulk item drop off event is provided twice per year (spring & fall). FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 593 $ 156 $ - $ - 0% Charges for Current Services 21,480 23,340 22,500 20,000 -11.11% Other Revenues 699 1,884 1,000 2,000 100% Total Revenues 22,772 25,380 23,500 22,000 -6.38% Expenditures Salaries and Wages $ 20,577 $ 81,738 $ 23,310 $ 22,855 -1.95% Fringe Benefits (4,801) 6,670 7,254 6,853 -5.53% Professional & Technical Services 500 500 500 500 0% Utilities and Maintenance 19,182 23,622 21,200 25,000 17.92% Operations 400 - 950 1,000 5.26% City Support Services 8,136 11,995 13,343 13,565 1.66% Supplies and Materials 161 249 650 275 -57.69% Total Expenditures 44,155 124,774 67,207 70,048 4.23% NET INCOME (LOSS) 21,383 99,394 43,707 48,048 - PERSONNEL: Number of FTE Positions 0.24 0.26 0.28 0.28 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Review and expand user fee based system. (Council Approval Required) 2. Improve drop off procedures and increase efficiency at our bi-annual drop offs. FUND 717 - REFUSE FUND 160 CITY OF HOPKINS FUNCTION: Refuse PROGRAM: Yard Waste/Leaf Collection PROGRAM SUMMARY: The Yard Waste/Leaf Collection program of the Refuse Utility Fund is a user fee based service that provides bagged yard waste and leaf collection weekly, mid-April through November, for Hopkins residential refuse customers. (Subject to change upon Council review.) A free drop-off site is also available to Hopkins residents three times a week. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Charges for Current Services $ 10,264 $ 7,723 $ 10,500 $ 7,600 -27.62% Total Revenues 10,264 7,723 10,500 7,600 -27.62% Expenditures Salaries and Wages $ 42,374 $ 63,136 $ 45,358 $ 46,387 2.27% Fringe Benefits 16,193 15,576 17,900 17,262 -3.56% Professional & Technical Services 1,007 1,245 800 1,300 62.5% Utilities and Maintenance 2,820 45,493 13,400 15,050 12.31% Operations 111 49 240 115 -52.08% City Support Services 11,286 14,737 18,555 18,776 1.19% Supplies and Materials 567 346 450 600 33.33% Total Expenditures 74,358 140,582 96,703 99,490 2.88% NET INCOME (LOSS) 64,094 132,859 86,203 91,890 - PERSONNEL: Number of FTE Positions 0.53 0.56 1.60 1.60 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor usage of free residential drop off site. 3. Track impact of curbside fee increase and compostable bag requirement. FUND 717 - REFUSE FUND 161 CITY OF HOPKINS FUNCTION: Refuse PROGRAM: Recycle PROGRAM SUMMARY: The Recycle program of the Refuse Utility Fund provides bi-weekly single stream recycle collection for 2,990 residences in the City Service area. Collection is provided by a private licensed hauler who is contracted by the City. Commercial and multi-family properties are required to contract independently for recycling services. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 15,322 $ 15,238 $ 14,100 $ 6,000 -57.45% Charges for Current Services 173,831 173,933 188,370 198,000 5.11% Other Revenues 19 168 300 - -100% Total Revenues 189,172 189,339 202,770 204,000 0.61% Expenditures Salaries and Wages $ 37,974 $ 41,100 $ 43,765 $ 43,425 -0.78% Fringe Benefits 14,740 13,338 16,263 8,682 -46.62% Professional & Technical Services 148,122 163,798 180,500 187,700 3.99% Utilities and Maintenance 73 8,045 - - 0% Operations 582 542 1,400 950 -32.14% City Support Services 21,190 30,250 36,096 36,096 0% Supplies and Materials 546 451 650 525 -19.23% Total Expenditures 223,227 257,524 278,674 277,378 -0.47% NET INCOME (LOSS) 34,055 68,185 75,904 73,378 - PERSONNEL: Number of FTE Positions 0.55 0.55 0.59 0.59 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Monitor the Single Stream Recycling Program and work with residents to increase the volume of waste recycled. 2. Verify compliance of commercial and multi-family properties. 3. Continue to promote waste abatement through public awareness campaigns and educational presentations. FUND 717 - REFUSE FUND 162 CITY OF HOPKINS FUNCTION: Refuse PROGRAM: Brush Service PROGRAM SUMMARY: The Brush Service program of the Refuse Utility Fund is a user fee based service that provides for the collection of curbside brush weekly on a call-in basis on Tuesdays throughout the year. Free yard waste/brush drop off is offered three times per week from mid-May through November. (Subject to change upon Council review.) FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Expenditures Salaries and Wages $ 26,675 $ 31,451 $ 26,538 $ 25,492 -3.94% Fringe Benefits 9,173 7,611 9,714 9,469 -2.52% Professional & Technical Services 1,000 1,300 1,000 1,000 0% Utilities and Maintenance 7,457 1,629 7,800 5,100 -34.62% Operations - - 500 - -100% City Support Services 14,071 12,908 13,664 13,891 1.66% Supplies and Materials 238 1,905 100 1,050 950% Total Expenditures 58,614 56,804 59,316 56,002 -5.59% NET INCOME (LOSS) 58,614 56,804 59,316 56,002 - PERSONNEL: Number of FTE Positions 0.30 0.35 0.41 0.41 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor impact of curbside brush pick-up fee increase on program usage. 3. Continue free residential drop off system. FUND 717 - REFUSE FUND 163 CITY OF HOPKINS FUNCTION: Refuse PROGRAM: Organics PROGRAM SUMMARY: Organic recycling is a shared drop-off facility available to Hopkins and Minnetonka refuse customers. Organics can be dropped off 24/7 at the facility. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ - $ - $ 2,000 $ 12,500 525% Charges for Current Services - - - - 0% Utility Service Charges - - 191,400 207,000 8.15% Total Revenues - - 193,400 219,500 13.5% Expenditures Professional & Technical Services $ - $ - $ 191,400 $ 204,840 7.02% Utilities and Maintenance - 802 2,000 2,000 0% Operations - - - 250 0% Supplies and Materials - 1,733 2,000 1,500 -25% Total Expenditures - 2,535 195,400 208,590 6.75% NET INCOME (LOSS) - 2,535 2,000 (10,910) (6) PERSONNEL: Number of FTE Positions 0 0 0 0 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. Continue to provide an option for organic recycling to customers. 2. Continue second year of curbside organic recycling service FUND 717 – REFUSE FUND 164 CITY OF HOPKINS FUND 717 – REFUSE FUND FUNCTION: Refuse PROGRAM: Disposal PROGRAM SUMMARY: The Disposal program of the Refuse Utility Fund provides automated refuse collection by City refuse trucks and personnel. Residential Refuse is collected from roll out carts with a fully automated truck on one of four designated route days. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2022: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2020 FY 2021 FY 2022 FY 2023 Audited Audited Approved Approved Percent Actuals Actuals Budget Budget Change Revenues Intergovernmental Revenue $ 23,174 $- $- $-0% Charges for Current Services 3,054 6,435 11,000 11,000 0% Interest on Investments 4,422 623 5,000 10,000 100% Utility Service Charges 761,167 763,676 797,100 797,100 0% 791,817 770,734 813,100 818,100 0.61% Expenditures Salaries and Wages $ 138,446 $ 168,380 $ 134,743 $ 134,640 -0.08% Fringe Benefits 64,499 50,228 63,163 63,082 -0.13% Professional & Technical Services (63,266) (116,924) 28,000 27,000 -3.57% Utilities and Maintenance 184,715 150,848 162,200 140,640 -13.29% Operations 2,770 2,679 4,250 3,000 -29.41% City Support Services 63,223 78,442 95,025 95,239 0.23% Supplies and Materials 29,258 11,212 51,350 51,700 0.68% Equipment Allocation 79,284 138,288 - - 0% Depreciation 64,719 45,697 68,028 73,082 7.43% Other Financing Uses 25,000 25,000 25,000 25,000 0% 588,648 553,850 631,759 613,383 -2.91% NET TAX AND GENERAL REVENUE SUPPORTED (203,169)(216,884)(181,341)(204,717)12.89% Dept. 40100, 48930, 48940, 48950, 49999 excluding account 3700 for FY19 PERSONNEL: Number of FTE Positions 1.76 1.85 1.94 1.94 165 CITY OF HOPKINS FUNCTION: STORM WATER Revenues and Expenses Enterprise Fund 740 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Intergovernmental Revenue $ 3,262 $ 33 $ - $ - 0% Charges for Current Services 1,339 3,759 6,000 6,000 0% Utility Service Charges 799,266 798,809 779,332 779,332 0% Inter-Fund Transfers 27,569 - - - 0% Total Revenues $ 831,436 $ 802,601 $ 785,332 $ 785,332 0% Expenditures Salaries and Wages $ 57,385 $ 74,007 $ 48,284 $ 49,803 3.15% Fringe Benefits 29,354 31,708 17,665 17,333 -1.88% Professional & Technical Services 1,471,777 1,415,726 14,000 14,000 0% Utilities and Maintenance 48,505 14,091 36,000 36,000 0% Operations 2,750 2,678 4,000 4,000 0% City Support Services 55,685 25,217 23,877 23,877 0% Supplies and Materials 5,747 905 1,800 3,350 86.11% Equipment Allocation - (24,000) - - 0% Depreciation 300,856 309,542 300,804 319,498 6.21% Debt Repayment 39,434 72,114 44,704 148,824 232.91% Other Financing Uses 196,276 155,504 188,588 176,837 -6.23% Total Expenditures $ 2,207,769 $ 2,077,492 $ 679,722 $ 793,522 16.74% Excess (deficiency) of revenues over expenditures 1,376,333 1,274,891 (105,610) 8,190 -107.75% The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 166 CITY OF HOPKINS FUNCTION: Storm Sewer PROGRAM: Sewer Maintenance PROGRAM SUMMARY:The Sewer Maintenance program of the Storm Sewer Fund maintains all storm sewer lines and storm inlets to assure adequate run-off. Creeks and ditches must be monitored to assure proper run-off and weed and pollution control. This work is done with staff and equipment from the Water & Sewer and Street & Sanitation divisions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Continue upgrades of storm water system including catch basin maintenance upgrades and open drainage ditch maintenance. 2. Continue reviewing overall city storm water drainage system and meet all requirements of city’s National Pollution Discharge Elimination System (NPDES), Phase II Storm Water Pollution Prevention Plan (SWPPP). 3. Continue grit chamber cleaning 4. Clean catch basins and inspect for repair. FY 2020 FY 2021 FY 2022 FY 2023 Audited Approved Approved Approved Percent 2020 2021 2022 2023 Change OPERATING REVENUES Intergovernmental Revenue $ 3,262.00 $ 33.00 $- $-0% Operating 800,605 802,568 785,332 785,332 0% Non-operating Revenues 31,749 465 7,000 25,000 257.14% 835,616 803,066 792,332 810,332 2.27% OPERATING EXPENSES Personnel Services $ 86,739.00 $ 105,715.00 $ 65,949.00 $ 67,136.00 1.8% Other Services & Charges 154,612 90,192 79,677 81,227 1.95% Depreciation Expense 300,856 309,542 300,804 319,498 6.21% Capital Outlay/Construction - - - - 0% Non-operating Expenses 235,710 227,618 233,292 325,661 39.59% 777,917 733,067 679,722 793,522 16.74% NET INCOME (LOSS) 57,699.00 69,999.00 112,610.00 16,810.00 -85.07% PERSONNEL: Number of FTE Positions 0.63 0.66 0.65 0.65 FUND 740 – STORM SEWER FUND 167 CITY OF HOPKINS FUNCTION: PAVILION Revenues and Expenses Enterprise Fund 747 Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 288,525 $ 340,249 $ 340,000 $ 340,000 0% Intergovernmental Revenue 54,802 127 - - 0% Charges for Current Services 316,822 464,169 496,500 479,000 -3.52% Other Revenues 4,788 1,317 - - 0% Total Revenues $ 664,937 $ 805,862 $ 836,500 $ 819,000 -2.09% Expenditures Salaries and Wages $ 208,026 $ 286,450 $ 256,905 $ 266,293 3.65% Fringe Benefits 82,607 84,246 85,332 92,771 8.72% Professional & Technical Services 10,680 4,647 7,000 7,000 0% Utilities and Maintenance 119,054 124,415 107,450 102,500 -4.61% Operations 7,672 19,494 18,840 18,290 -2.92% City Support Services 15,168 36,458 18,721 18,721 0% Supplies and Materials 24,709 18,295 18,350 18,325 -0.14% Equipment Allocation (28,615) - 8,000 - -100% Depreciation 479,454 477,971 480,000 477,786 -0.46% Debt Repayment 91,510 86,110 85,850 79,275 -7.66% Total Expenditures $ 1,010,265 $ 1,138,086 $ 1,086,448 $ 1,080,961 -0.51% Excess (deficiency) of revenues over expenditures 345,328 332,224 249,948 261,961 4.81% The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 168 CITY OF HOPKINS FUNCTION: Pavilion PROGRAM: Ice, Turf, Dry Floor, & Room Rental PROGRAM SUMMARY: The rental programs of the Pavilion Fund manages and schedules public use groups and maintenance for the ice arena/pavilion which will utilize the facility to its maximum potential and generate adequate revenue to offset the cost of operations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2023: 1. Create and market programs, events, and opportunities to safely increase the community’s recreational options. 2. Meet with local athletic associations to gather input and ideas on how we can better serve their needs. 3. Develop and utilize energy saving procedures and equipment. Evaluate environmental impact of current facility supplies and replace with eco-friendly products where appropriate 4. Operate a budget to maximize revenues. FY 2020 FY 2021 FY 2022 FY 2023 Audited Approved Approved Approved Percent 2020 2021 2022 2023 Change OPERATING REVENUES Intergovernmental Revenue $ 54,802.00 $ 127.00 $- $-0% Other Revenues -1 -- 0% Operating 321,610 465,486 496,500 479,000 -3.52% Non-operating Revenues 288,525 340,249 340,000 340,000 0% 664,937 805,863 836,500 819,000 -2.09% OPERATING EXPENSES Personnel Services $ 290,633.00 $ 370,696.00 $ 342,237.00 $ 359,064.00 4.92% Other Services & Charges 177,283 203,309 170,361 164,836 -3.24% Depreciation Expense 479,454 477,971 480,000 477,786 -0.46% Capital Outlay/Construction 28,615 - - - 0% Non-operating Expenses 62,895 86,110 93,850 79,275 -15.53% 1,038,880 1,138,086 1,086,448 1,080,961 -0.51% NET INCOME (LOSS)(373,943.00) (332,223.00) (249,948.00) (261,961.00)4.81% PERSONNEL: Number of FTE Positions 2.90 2.90 2.42 2.42 FUND 747 – PAVILION FUND 169 CITY OF HOPKINS FUNCTION: DEBT SERVICE Revenues and Expenditures Actual Actual Budget Budget Percent 2020 2021 2022 2023 Change Revenues Property Taxes $ 4,232,097 $ 4,114,950 $ 4,003,044 $ 3,892,746 -2.76% Special Assessments 583,124 941,854 735,713 762,447 3.63% Interest on Investments 3,746 11,900 - - 0% OTHER FINANCING SOURCES 5,836,513 3,856,611 - - 0% Inter-Fund Transfers 11,373,892 2,765,856 2,563,746 2,441,344 -4.77% Total Revenues $ 22,029,372 $ 11,691,171 $ 7,302,503 $ 7,096,537 -2.82% Expenditures Professional & Technical Services $ 208,896 $ 108,901 $ - $ - 0% City Support Services 9,618 7,744 - - 0% Debt Repayment 13,611,204 10,214,534 6,343,370 7,598,497 19.79% Other Financing Uses 4,534,606 3,681,898 - - 0% Total Expenditures $ 18,364,324 $ 14,013,077 $ 6,343,370 $ 7,598,497 19.79% Excess (deficiency) of revenues over expenditures (3,665,048) 2,321,906 (959,133) 501,960 -152.33% Debt Service funds finanace and account for the payment of interest and principal on all general obligation debt other than debt issued for an enterprise fund. In January 2014 the City's credit rating was upgraded to a AA+ following an interium rating review. This rating has been reaffirmed each year since. 170 CITY OF HOPKINS GLOSSARY OF TERMS Accrual Basis – The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or the payment of cash may take place, in whole or in part, in another accounting period. Adopted Budget – The financial plan of revenues and expenditures for a fiscal year as adopted by the City Council. Appropriation – A specific amount of money authorized by the City Council, generally during adoption of the annual budget, used to make expenditures for specific purposes. Ad Valorem Tax – Money collected from all the real property within the City based upon the value of the property. Annual Budget – The budget authorized by resolution of the City Council for the fiscal year. Appropriation – Authorization by the City Council to incur obligations and spend City funds. Appropriations are usually made for fixed amounts and are typically granted for one year. Artstreet - Hopkins Artstreet is an ongoing program established in 2010 to showcase original art works in an accessible setting. A collaboration among the City of Hopkins, the Hopkins Business & Civic Association and the Friends of the Hopkins Center for the Arts, this project is part of a long- term vision for incorporating public art into Hopkins and enriching the lives of its residents and visitors. This project is made possible, in part, by funds provided by the Metropolitan Regional Arts Council through an appropriation by the Minnesota Legislature. Assets – Property owned by a government which as a monetary value. Assessed Valuation – A value established by the City Property Appraiser for all real or personal property for use as a basis for levying property taxes. Balanced Budget – A budget in which expenditures are equal to income. Bond – A written promise to pay a sum of money on a specific date at a specified interest rate as detailed in a bond resolution. Bond Proceeds – Funds received from the sale of any bond issue. Budget – The financial plan for a specific period of time that identified proposed expenditures and the sources of revenue to pay for them. Budget Adjustment – A revision to the adopted budget occurring during the affected fiscal year as approved by the City Council by an amendment or a transfer. Budget Documents – The official written statement prepared by the Finance Director and supporting staff, which presents the proposed budget to the legislative body. Budget Calendar – The schedule of key dates involved in the process of adopting and executing an adopted budget. 171 CITY OF HOPKINS Budget Message – The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, as well as the views and recommendations of the City Manager. CDBG Community Development Block Grant – This fund receives and expends the City’s allocation of the Federal Community Development Block Grant Program money. Capital Asset – Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Improvement Program (CIP) – A five year schedule of capital improvement projects and the means of financing them. This is a flexible budget document that is used as a planning tool for needed improvements. Amounts approved in the CIP are considered guidelines and are not officially adopted as budgeted amounts until they are incorporated in the operating budget of one of the City’s funds. Capital Outlay – Expenditures that result in the acquisition of fixed assets that have a value over $5,000 and a useful life greater than one year. Capital Project Funds – The funds that account for all resources unused for the acquisition or construction of capital facilities, except those financed by Proprietary Funds. Certified Levy – Total tax levy of a jurisdiction, which is certified to the County Auditor. CERT – Community Emergency Response Team. The CERT Program consists of a group of volunteers who have been trained to assist with basic disaster response such as fire safety, light search and rescue, team organization and disaster medical operations. Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services – The cost of items related to a contractual agreement. Examples would be professional services such as legal, engineering, actuarial and consultants. Court Fines and Forfeits – Fines imposed on individuals by the courts for various illegal acts performed within the City. Debt Service Funds – the funds that account for the payment of principal and interest on outstanding debt for the City. Deficit – The excess of expenditures over revenues. Department – Basic organizational unit of City government, responsible for carrying out a specific function. Depreciation – Expenditures incurred when spreading the cost of an asset over its estimated useful like rather than deducting the entire cost in the year the asset is purchased. Enterprise Fund – The funds that account for the financing of self-supporting activities of governmental units and render services to the general public based on user charges. 172 CITY OF HOPKINS Estimated Market Value – Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. Expenditure – Decreases in financial resources other than through interfund transfers. Fiscal Disparities – The program created by the Metropolitan Fiscal Disparities Act which shares growth in the commercial-industrial tax base in the seven county metropolitan area. Forty percent of the value of new commercial-industrial development since 1971 is pooled and redistributed among the 300 taxing districts to address uneven business development throughout the region. Fiscal Year – For budgeting purposes the City’s fiscal year is the calendar year. Fixed Asset – Purchases of a long-term nature, which are to be held and used. Examples would be land, buildings, machinery, furniture and equipment. FTE – Equivalent of one employee working fulltime, or 2.080 hours per year. A FTE can be filled by any number of employees whose combined hours total 2,080 per year. Fund – A separate accounting entity, with a set of self-balancing accounts for recording the collection of revenues and the payment of expenditures to carry out a specific function. Fund Balance – Fund Balance is the difference between assets and liabilities in governmental funds (i.e. general fund, special revenue funds, capital project funds, debt service funds and permanent funds). Non-spendable Fund Balance – Describes the amount of a fund balance that cannot be spent because it is either not in spendable form or there is a legal or contractual requirement for the funds to remain intact. Spendable Fund Balance – Describes the amount of fund balance that is available for appropriation based on the constraints that control how specific amounts can be spent. Typically, a significant portion of a government’s spendable resources can be spent only for specified purposes. The following categories define the revenue source and the level of force of the constraint on spending Restricted Fund Balance – The restricted fund balance category includes the portion of the spendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes Committed Fund Balance – The committed fund balance classification includes the portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to year end but the amount can be determined at a later date. Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. 173 CITY OF HOPKINS Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. GASB (Governmental Accounting Standards Board) – It is the highest source of accounting and financial reporting guidance for state and local governments. General Fund – The largest fund in the City, the General Fund accounts for most of the City’s financial resources. General Fund revenues include: property taxes, licenses and permits, local taxes, service charges and other types of revenues. This is the fund that accounts for the revenues and expenditures necessary to deliver basic operating services: police, fire, finance, parks, public works, etc. General Obligation Bonds – When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds with are to be repaid from taxes and other general revenues. GFOA (Government Finance Officers Association) – the professional association of state and local finance officers in the United States who are dedicated to the sound management of government financial resources. The association sets program standards for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Award. Governmental Funds – The General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. HBCA – Hopkins Business and Civic Association, ensures a strong economic development climate, provides promotional activities, encourages community involvement and fosters a sense of community among individuals, civic organizations and businesses Hopkins in Motion – This annual event focuses on the walkability/ livability of Hopkins and encourages participants to be active while having fun. Indirectly Funded Amount – The portion of appropriates not funded by program revenues such as fees and grants. This portion is funded from shared revenues such as property tax, governmental revenues or a city-wide fee not directly attributed to any one program. Interest Earnings – Interest received from the investment of cash in a fund. Intergovernmental Revenues – Funds received from State or Federal governments in the form of grants or shared revenues for various activities. Internal Service Funds – The funds within the Proprietary Fund that account for the financing of goods or services provided by one department or agency to other departments or agencies of a government. IT – Information Technology Department of the city. This department provides computer technology support to all city departments. 174 CITY OF HOPKINS Levy – To impose taxes, special assessments or service charges. Licenses – Revenues received by the issuance of various licenses that are granted to various businesses in the City. Local Government Aid (LGA) – Money given to the City from the State based on a formula that was originally designed to provide tax relief and equalization among cities. LMC – The League of Minnesota Cities is a membership organization dedicated to promoting excellence in local government. The League serves its more than 800 member cities through advocacy, education and training, policy development, risk management, and other services. LRT – Light Rail Transit, a commuter train system in the Minneapolis/St. Paul metropolitan area. Major Account Series – Three classifications of expenditures made by the City. Salaries, Wages and Benefits – Costs relating to employees or temporary help, including fringe benefits. Materials, Supplies and Services – Costs relating to articles of non-durable nature, such as office supplies; professional and technical services; utilities and maintenance; operations and city support services. Capital Outlay – Costs of durable goods such as furniture and equipment. Reimbursed Expenditures – Offset against costs for services provided by one fund to another fund. Major Fund – Governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. Market Value Homestead Credit (MVHC) – Started in 2002, this is the primary State program for property tax relief. The State remits a portion of sales and income taxes to local government to assist in keeping property taxes down. MCES – Metropolitan Council Environmental Services provides the City with wastewater service. Miscellaneous Revenue – Funds collected from various sources generally on a non-recurring basis. Modified Accrual Basis – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Net Assets – The equity associated with general government less liabilities. Non-major Fund – A governmental fund or enterprise fund that is reported in total in the basic fund financial statements. Operating Expenditure – Expenditure classifications based upon the types of categories of goods and services purchased. Typical objects include: personal services (salaries and wages); contracted services (utilities, maintenance, contracts, travel); supplied and materials; and capital outlay. 175 CITY OF HOPKINS Operating Budget – Financial plan for the fiscal year, which authorizes proposed personnel complements, expenditures and the revenues to finance them. Penalties – Charges to utility customers caused by late payment of their water, sewer, and refuse bills. Permits – Revenue derived from various permits as defined in the City Code, for the performance of a specific action. For example, building a house. Personal Services – The cost of salaries and wages paid to employees as well as the fringe benefits associated with employment (i.e. Social Security, PERA, health insurance, life insurance, etc.). Program – Within each Department are several divisions or programs in the City, each charged with carrying out a specific function. Proposed Budget – Budget as submitted by the City Manager to the City Council. Proprietary Funds – The funds that account for government operations financed and operated in a manner similar to a private business. Refuse Service – Revenue incurred from the sale of trash pick-up and disposal, leaf pick-up, yard waste and recycling to residential customers of the City. Retained Earnings – An equity account reflecting the accumulated earnings of the City’s Proprietary (Enterprise) Funds. Sewer Service – Revenue incurred from the sale of sanitary sewer service to customers of the utility. Special Assessment – Receipts from assessments placed on property within the City for public improvements that have benefited that property. Special Revenue Funds – A fund that accounts for revenues derived from specific taxes or other earmarked revenue sources. Storm Sewer Sales – Revenue derived from a storm sewer utility fee assessed property owners based on the amount of impervious surface on their property. Revenues are used to maintain and improve the City’s storm sewer system. SWLRT – Southwest Light Rail Transit. A commuter train system in the Southwest area of the Minneapolis/St. Paul metropolitan area. Tax Capacity – County tax base for the purposes of levying property taxes. Properties are assigned rates at which their values will be converted into the tax base, (see tax classification rate). Tax Capacity Rate – Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. Tax Classification Rate – Rates at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type. 176 CITY OF HOPKINS Tax Increment Financing – Financing tool originally intended to combat severe blight in areas which would not be redeveloped “but for” the availability of government subsidies derived from locally generated property tax revenues. Tax Increments – The value of local taxes collected on a redeveloped or developed property, above the base year taxes. TIF – An abbreviation for Tax Increment Financing. TOD – Transit Orientated Development. A term used to describe development surrounding Light Rail Transit. Transfers – Funds transferred between City funds. Truth-in-Taxation – Procedures adopted by the 1998 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. These procedures are revised annually. Truth-in-Taxation Public Hearing – Statutory requirement for most local governments to hold public hearings on their proposed budgets and property tax levies. Water Sales – Revenue earned from the sale of water to customers of the utility. Working Capital – Current assets minus current liabilities. This measure is used as a gauge in determining appropriate fund balances. 177