2022 City of Hopkins, MN Annual Financial ReportCity of Hopkins, Minnesota
Annual Comprehensive Financial Report
for year ended December 31, 2022
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ANNUAL COMPREHENSIVE
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2022
Prepared by the Department of Finance
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City of Hopkins, Minnesota
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended December 31, 2022
Page No.
Introductory Section
Letter of Transmittal 11
Elected and Appointed Officials 15
Organizational Chart 16
Financial Section
Independent Auditor’s Report 19
Management’s Discussion and Analysis 23
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 39
Statement of Activities 40
Fund Financial Statements
Governmental Funds
Balance Sheet 44
Reconciliation of the Balance Sheet to the Statement of Net Position 47
Statement of Revenues, Expenditures and Changes in Fund Balances 48
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances to the Statement of Activities 50
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 51
Economic Development Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 52
Tax Increment District Super Value Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 53
Proprietary Funds
Statement of Net Position 54
Statement of Revenues, Expenses and Changes in Net Position 58
Statement of Cash Flows 60
Notes to the Financial Statements 65
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund 104
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 104
Notes to the Required Supplementary Information - General Employees Retirement Fund 105
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 107
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 107
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 108
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 110
Schedule of Employer’s Fire Relief Association’s Contributions 110
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 111
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City of Hopkins, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2022
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 114
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 115
Nonmajor Special Revenue Funds
Combining Balance Sheet 118
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 120
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
State Chemical Assessment Fund 122
Parking Fund 123
Communications Fund 124
Art Center Fund 125
Hopkins Race and Equity Initiative Fund 126
Depot Coffee House Fund 127
Tax Increment District Entertainment District Fund 128
Tax Increment District of Oaks of Mainstreet Fund 129
Tax Increment District Moline Fund 130
Tax Increment District Marketplace and Main Fund 131
Nonmajor Capital Projects Funds
Combining Balance Sheet 134
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 136
Debt Service Funds
Combining Balance Sheet 138
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 140
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 142
Nonmajor Enterprise Funds
Combining Schedule of Net Position 148
Combining Schedule of Revenues, Expenses and Changes in Net Position 149
Combining Statement of Cash Flows 150
Internal Service Funds
Combining Schedule of Net Position 154
Combining Schedule of Revenues, Expenses and Changes in Net Position 155
Combining Statement of Cash Flows 156
Summary Financial Report
Revenues and Expenditures for General Operations - Governmental Funds 157
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City of Hopkins, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2022
Table Page No.
Statistical Section (Unaudited)
Financial Trends
Net Position by Component 1 162
Changes in Net Position 2 164
Fund Balances of Governmental Funds 3 168
Changes in Fund Balances of Governmental Funds 4 170
Revenue Capacity
Assessed and Actual Value of Taxable Property 5 172
Direct and Overlapping Property Tax Rates 6 174
Principal Property Taxpayers 7 176
Property Tax Levies and Collections 8 177
Debt Capacity
Ratio of Outstanding Debt by Type 9 178
Ratios of Net General Bonded Debt Outstanding 10 181
Direct and Overlapping Governmental Debt 11 182
Legal Debt Margin Information 12 184
Demographic and Economic Information
Demographic and Economic Statistics 13 186
Principal Employers 14 187
Operating Information
Full-Time Equivalent City Government Employees by Type 15 188
Operating Indicators by Function/Program 16 190
Capital Asset Statistics by Function/Program 17 192
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INTRODUCTORY SECTION
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
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June 29, 2023
To the Honorable Mayor, Members of the Hopkins City Council and the Residents of the City of
Hopkins, Minnesota:
The Annual Comprehensive Financial Report of the City of Hopkins, Minnesota (the City) for
the fiscal year ended December 31, 2022 is hereby submitted. This report was prepared in
accordance with U.S. generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) and meets the requirements of the
Minnesota State Auditor’s Office.
This report consists of management’s representations concerning the finances of the City of
Hopkins. Consequently, management assumes full responsibility for both the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis for
making these representations, management of the City of Hopkins has established a
comprehensive internal control framework that is designed both to protect the government’s
assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Hopkins financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City of Hopkins comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material respects.
The City of Hopkins financial statements have been audited by Abdo LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City of Hopkins for the fiscal year ended
December 31, 2022, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent
auditor concluded based upon the audit, that there was a reasonable basis for rendering
unmodified opinions that the City of Hopkins financial statements for the fiscal year ended
December 31, 2022, are fairly presented in conformity with GAAP. The independent auditors’
report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found in the financial section of this report
immediately following the report of the independent auditors.
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Profile of the Government
Hopkins was first settled in 1853 and was incorporated as the Village of West Minneapolis in
1893. The name was changed in 1928 to Hopkins after one of the early residents. The original
territory of incorporation was three square miles, but successive annexation since 1946 has
enlarged this area by one-third. In 1947, the residents of the area adopted a City Charter with a
Council/Manager form of government. The governing council is responsible, among other things,
for passing ordinances, adopting the budget, appointing committees and hiring the City Manager.
The government’s manager is responsible for carrying out the policies and ordinances of the
government, for overseeing day-to-day operations of the government and for appointing the
heads of the government’s departments.
The report includes all funds of the City, including the City’s Housing and Redevelopment
Authority (HRA). The City provides a full range of services including general government,
public safety, highways and streets, urban redevelopment and housing, culture and recreation,
and health and welfare. In addition to general municipal activities, the City provides water,
sewer, storm sewer and refuse services and operates an ice arena. Low-income rental housing is a
function of the HRA. The Hopkins Fire Relief Association has not met the established criteria for
inclusion in the reporting entity, and accordingly is excluded from this report.
The annual budget serves as the foundation for the City of Hopkins financial planning and
control. All departments of the City of Hopkins are required to submit requests for appropriation
to the Finance Director by June of each year. The Finance Director uses these requests as the
starting point for developing a proposed budget. The Finance Director then presents this
proposed budget to the Council for review prior to September 30th. The Council is required to
hold public hearings on the proposed budget and to adopt a final budget no later than December
31, the close of the City of Hopkins fiscal year.
The appropriated budget is prepared by fund and department. Department heads may make
transfers of appropriations within a department. Transfers of appropriations between fund s
require approval of the City Council. Budget to actual comparisons are provided in this report for
each individual governmental fund for which an annual budget has been adopted. For the General
Fund and the major Special Revenue Funds this comparison is presented on pages 51-53 as part
of the basic financial statements for the governmental funds. For governmental funds, other than
the General fund and major Special Revenue Funds, with annual budgets, this comparison
is presented in the combining and individual fund statements and schedules subsection of
this report on pages 114-157.
Factors Affecting Financial Condition
The City of Hopkins, consisting of 2,504 acres, is located in Hennepin County on the westerly
fringe of the Minneapolis urban area. The City, as part of the Minneapolis-St. Paul metropolitan
complex, is readily accessible by the many highways and railways leading into the area. This easy
access prompted steady growth for the City of Hopkins during its formative years. In response to
this growth the City developed goals of working towards a planned community, with its policies
directed toward sound ratios of residential, commercial and industrial components, with the
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current tax base approximately 76% single family residential and apartments, and 24%
commercial-industrial. The city’s population has grown slightly. The City is largely developed,
but has seen increased interest from developers since 2018 after the ground breaking for
Southwest Light Rail Transit, a fourteen mile light rail line with three stops in Hopkins.
The City Council and staff along with an organized group of concerned partners determined what
the Vision and the Mission of the City of Hopkins should be. Participation in this project was
very high and the resulting Vision and Mission are as follows:
Community Vision
Creating a spirit of community where:
•All people feel save and respected, and diversity is celebrated.
•Business growth is supported and a vibrant downtown is maintained.
•People enjoy exceptional government services, neighborhoods and outstanding
schools.
City of Hopkins Mission
•Inspire, Educate, Involve, Communicate
Economic Condition and Outlook
Hopkins continues to see an upward trend in economic and redevelopment opportunities within
the City. The ground breaking for Southwest Light Rail Transit (SWLRT) occurred during 2018.
The project will continue to be a catalyst for development along its corridor, including in
Hopkins. Development activity is also the result of successful planning on the part of the city
council and city staff. Efforts are being made for continued development and growth for 2023
and beyond.
Long-term financial planning
The City of Hopkins has a strategic plan for economic development and has completed extensive
planning work in anticipation of the Southwest Light Rail Transit (SWLRT) line and the three
Hopkins LRT stations. As a part of the plans, the City of Hopkins intends to pursue various
development and redevelopment efforts throughout the City.
Future projects
A systematic citywide sidewalk rehab program was initiated in 1992. Each year one quadrant is
inspected and necessary repairs made. A sidewalk/trail plan was developed and implemented in
2003, which guides future improvements and connections to regional trails.
The City has established a street reconstruction and storm sewer program based on a street
condition survey and storm water management program. The streets found in poor condition and
future problem streets will be systematically included for repairs in the five-year Capital
Improvement Plan.
Certificate of Achievement For
Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial reporting to the City of
Hopkins for its annual comprehensive finance report for the fiscal year ended
December 31, 2021. In order to be awarded a Certificate of Achievement for Excellence in
Financial Reporting, a governmental unit must publish an easily readable and efficiently
organized annual comprehensive financial report. This report must satisfy both U.S. generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
annual comprehensive financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
We wish to express our appreciation to the Mayor and City Council for their continued interest
and support in planning and conducting the financial operations of the City in a responsible and
progressive manner. We also want to express our appreciation to the Finance Department staff
for their work in preparing this report.
Respectfully submitted,
Michael J. Mornson Nick Bishop, CPA
City Manager Finance Director
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City of Hopkins, Minnesota
Elected and Appointed Officials
For the Year Ended December 31, 2022
Name Title Term Expires
Patrick Hanlon Mayor 12/31/23
Gerard Balan Council Member 12/31/25
Heidi Garrido Council Member 12/31/25
Brian Hunke Council Member 12/31/23
Alan Beck Council Member 12/31/23
Name Title
Mike Mornson City Manager
Kersten Elverum Director of Planning & Economic 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
ELECTED
APPOINTED
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Residents
City Council
City Manager
Recreation
Joint Recreation
Depot Coffee
House
Public Works
Building
Maintenance &
Equipment
Services
Engineering
Parks & Forestry
Streets & Traffic
Refuse
Water & Sewer
Pavilion/Ice Arena
Police
Patrol
Investigation
Communication
Crime Prevention
Outreach
Planning and
Economic
Development
Economic
Development
Housing
Planning & Zoning
Public Housing
Fire
Fire & Medical
Response
Prevention
Emergency
Preparedness
Finance
Assessing
Accounting
Payroll
Utility Billing
Community
Services
Communications
Information
Services
Inspections
Activity Center
Arts Center
City ClerkCity Attorney
Boards &
Commissions
Organizational Chart
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FINANCIAL SECTION
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Hopkins, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the City of Hopkins, Minnesota (the City), as of and for the
year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund
information of the City as of December 31, 2022, and the respective changes in financial position and, where applicable,
cash flows thereof and the budgetary comparison for the General fund, Economic Development special revenue fund and
the Tax Increment Super Valu special revenue fund for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the prehparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an au ditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Change in Accounting Principle
As described in Note 9 to the financial statements, the City adopted the provisions of Governmental Accounting Standard
Board (GASB) Statement No. 87, Leases, for the year ended December 31, 2022. Adoption of the provisions of these
statements results in significant change to the classifications of the components of the financial statements. Our opinion
is not modified with respect to this matter.
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis starting on page 21 and the Schedules of Employer’s Share of the Net Pension Liability, the Schedule of Changes
in Net Pension Liability (Asset) and Related Ratios, the Schedules of Employer’s Contributions , and the Schedule of
Changes in the City’s OPEB Liability and Related Ratios starting on page 102 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accep ted in the
United States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The accompanying supplementary information as listed in the table of contents is
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opin ion, the supplementary information as
listed in the table of contents is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on
the basic financial statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2023, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
Abdo
Minneapolis, Minnesota
June 29, 2023
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Management’s Discussion and Analysis
As management of the City of Hopkins, Minnesota, (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2022.
Financial Highlights
•The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year as shown in the summary of net position on the following
pages. The unrestricted amount of net position may be used to meet the C ity’s ongoing obligations to residents
and creditors.
•The City’s total net position decreased as shown in the summary of changes in net assets table on the following
pages. The decrease this year was due primarily to an in development expenses which were offset by favorable
operating results in the General fund and federal grants.
•For the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of the
City's Funds section of the MD&A. The total fund balance decreased in comparison with the prior year. This
decrease was mainly due to a large increase in development expenditures, which were offset by favorable
operating results in the General fund and federal grants.
•The unassigned fund balance in the General fund as shown in the financial analysis of the City’s funds section
increased from prior year. The increase is mainly due to revenue related to new development, including licenses,
permits and other charges for services.
•The City’s total bonded debt increased during the fiscal year. The increase was a combination of schedule debt
service payments as shown on the outstanding schedule offset by new bond issuance.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s
basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition
to the basic financial statements themselves.
The financial statements also include notes that explain some of the information in the financial statements and provide
more detailed data. The statements are followed by a section of combining and individual fund financial statements and
schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required
parts of this annual report are arranged and relate to one another. In addition to these required elements, we have
included a section with combining and individual fund financial statements and schedules that provide details about
nonmajor governmental funds, which are added together and presented in single columns in the basic financial
statements.
Figure 1
Required Components of the
City’s Annual Financial Report
Management's
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-
wide Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Summary Detail
24
Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government
they cover and the types of information they contain. The remainder of this overview section of management’s discussion
and analysis explains the structure and contents of each of the statements.
Figure 2
Major Features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City government
(except fiduciary funds)
and the City’s component
units
The activities of the City that
are not proprietary or
fiduciary, such as police, fire
and parks
Activities the City
operates similar to private
businesses, such as the
water and sewer system
Required financial
statements
•Statement of Net
Position
•Statement of Activities
•Balance Sheet
•Statement of Revenues,
Expenditures, and
Changes in Fund
Balances
•Statements of Net
Position
•Statements of
Revenues, Expenses
and Changes in Fund
Net Position
•Statements of Cash
Flows
Accounting basis and
measurement focus
Accrual accounting and
economic resources focus
Modified accrual accounting
and current financial
resources focus
Accrual accounting and
economic resources focus
Type of asset/liability
information
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Type of deferred
outflows/inflows of
resources information
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid
Only deferred outflows of
resources expected to be
used up and deferred
inflows of resources that
come due during the year or
soon thereafter; no capital
assets included
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid
Type of inflow/out flow
information
All revenues and expenses
during year, regardless of
when cash is received or
paid
Revenues for which cash is
received during or soon
after the end of the year;
expenditures when goods or
services have been received
and payment is due during
the year or soon thereafter
All revenues and expenses
during the year, regardless
of when cash is received
or paid
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Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with
a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets and deferred outflows of resources and
liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items
that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities of
the City include general government, public safety, public works, culture and recreation, economic development and
interest on long-term debt. The business-type activities of the City include water, sanitary sewer, storm water, and
wastewater treatment plant utilities.
The government-wide financial statements include not only the City itself (known as the primary government), but also a
legally separate Hopkins Housing and redevelopment Authority for which the City is financially accountable. Although the
Hopkins Housing and Redevelopment Authority is legally separate, it functions for all practical purposes as a department
of the City of Hopkins, and therefore has been included as a integral part of the primary government.
The government-wide financial statements start on page 39 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can
be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as
well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact
by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains numerous individual governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for
the General, Economic Development, Tax Increment Spending Plan, Tax Increment Super Valu, and Debt Service funds, all
of which are considered to be major funds. Data from the other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements or schedules elsewhere in this report.
The City adopts an annual appropriated budget for its General fund, Economic Development special revenue fund, and
Tax Increment Super Valu special revenue fund. Budgetary comparison statement and schedules have been provided for
these funds to demonstrate compliance with their budgets.
The basic governmental fund financial statements start on page 44 of this report.
26
Proprietary Funds. The City maintains two types of proprietary funds and internal service funds. Enterprise funds are used
to report the same functions presented as business-type activities in the government-wide financial statements. The City
uses enterprise funds to account for its water, sewer, storm sewer, pavilion, refuse and housing authority. The City uses
an internal service fund to account equipment replacement, employee benefits and insurance risk. Because these
services predominantly benefit governmental functions rather than business-type functions, they have been included
within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for each of the enterprise funds which are
considered to be major funds of the City.
The basic proprietary fund financial statements start on page 54 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes to the financial statements start on
page 65 of this report.
Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City’s share of net pension liabilities (assets) for
defined benefits plans, schedules of contributions, and progress in funding its obligation to provide pension and other
postemployment benefits to its employees. Required supplementary information can be found starting on page 104 of
this report.
Other Information. The combining statements referred to earlier in connection with nonmajor governmental funds and
internal service funds are presented following the notes to the financial statements. Combining and individual fund
financial statements and schedules start on page 114 of this report.
27
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of
the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of
the most recent fiscal year.
The largest portion of the City’s net position reflects its investment in capital assets (e.g., land, buildings, machinery an d
equipment) less any related debt used to acquire those assets that are still outstanding.
The City uses these capital assets to provide services to residents; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be
used to liquidate these liabilities.
City of Hopkins’ Summary of Net Position
Increase Increase
2022 2021 (Decrease)2022 2021 (Decrease)
Assets
Current and other assets 42,974,866$ 44,327,785$ (1,352,919)$ 8,850,416$ 6,686,126$ 2,164,290$
Capital assets 95,983,983 96,466,129 (482,146) 48,902,054 45,935,942 2,966,112
Total Assets 138,958,849 140,793,914 (1,835,065) 57,752,470 52,622,068 5,130,402
Deferred Outflows of Resources
Deferred pension resources 10,758,656 6,812,339 3,946,317 214,147 242,942 (28,795)
Deferred other postemployement benefits 524,305 227,331 296,974 88,991 37,716 51,275
Total Deferred Outflows of Resources 11,282,961 7,039,670 4,243,291 303,138 280,658 22,480
Liabilities
Noncurrent liabilities outstanding 83,660,863 72,858,729 10,802,134 24,407,677 20,368,334 4,039,343
Other liabilities 9,044,999 7,991,292 1,053,707 924,150 514,437 409,713
Total Liabilities 92,705,862 80,850,021 11,855,841 25,331,827 20,882,771 4,449,056
Deferred Inflows of Resources
Deferred pension resources 794,371 9,119,390 (8,325,019) 64,015 300,797 (236,782)
Deferred lease revenue - - - 1,055,809 - 1,055,809
Deferred other postemployment benefits 12,279 14,783 (2,504) 2,091 2,453 (362)
Total Deferred Inflows of Resources 806,650 9,134,173 (8,327,523) 1,121,915 303,250 818,665
Net Position
Net investment in capital assets 42,085,537 40,801,556 1,283,981 27,274,646 26,950,711 323,935
Restricted 16,293,593 22,955,218 (6,661,625) - - -
Unrestricted (1,649,832) (5,907,384) 4,257,552 4,327,220 4,765,994 (438,774)
Total Net Position 56,729,298$ 57,849,390$ (1,120,092)$ 31,601,866$ 31,716,705$ (114,839)$
Net Position as a Percent of Total
Net investment in
capital assets 74.2 %70.5 %86.3 %85.0 %
Restricted 28.7 39.7 - -
Unrestricted (2.9) (10.2) 13.7 15.0
100.0 %100.0 %100.0 %100.0 %
Governmental Activities Business-type Activities
At the end of the current fiscal year, the City is able to report positive balances in its net investment in capital assets a nd
restricted net position, both for the City as a whole, as well as for its separate governmental and business -type activities.
The City reports a negative unrestricted net position for its governmental activities and a positive unrestricted net position
for the business-type activities.
28
Statement of Activities. Governmental type activities and the business-type activities decreased the City’s net position.
Key elements of the overall decrease are as follows:
City of Hopkins’ Changes in Net Position
Increase Increase
2022 2021 (Decrease)2022 2021 (Decrease)
Revenues
Program Revenues
Charges for services 3,867,099$ 2,938,316$ 928,783$ 8,257,538$ 8,012,960$ 244,578$
Operating grants and contributions 1,536,123 846,098 690,025 565,267 217,609 347,658
Capital grants and contributions 542,947 972,490 (429,543) - - -
General revenues
Taxes
Property taxes 17,536,200 16,768,653 767,547 417,999 340,249 77,750
Tax increment 4,108,301 4,244,240 (135,939) - - -
Franchise and other 1,160,763 1,183,050 (22,287) - 646 (646)
Grants and contributions
not restricted to
specific programs 1,356,976 946,660 410,316 - 4,565 (4,565)
Unrestricted investment earnings (loss)328,320 26,182 302,138 (1,052) 2,660 (3,712)
Gain on sale of capital assets 112,496 46,020 66,476 250,000 - 250,000
Total Revenues 30,549,225 27,971,709 2,577,516 9,489,752 8,578,689 911,063
Expenses
General government 4,226,750 721,904 3,504,846 - - -
Public safety 9,841,518 7,267,896 2,573,622 - - -
Public works 4,149,085 8,435,670 (4,286,585) - - -
Culture and recreation 4,183,137 1,965,858 2,217,279 - - -
Urban development and housing 8,036,771 3,023,619 5,013,152 - - -
Interest on long-term debt 1,703,818 1,921,725 (217,907) - - -
Water - - - 2,354,679 2,115,519 239,160
Sewer - - - 2,894,178 2,608,224 285,954
Garbage - - - 1,327,982 1,111,069 216,913
Storm sewer - - - 544,962 577,563 (32,601)
Pavilion - - - 1,096,391 1,138,086 (41,695)
Housing authority - - - 914,637 606,643 307,994
Total Expenses 32,141,079 23,336,672 8,804,407 9,132,829 8,157,104 975,725
Increase (Decrease) in Net Position
Before Transfers (1,591,854) 4,635,037 (6,226,891) 356,923 421,585 (64,662)
Transfers (Net)471,762 471,762 - (471,762) (471,762) -
Change in Net Position (1,120,092) 5,106,799 (6,226,891) (114,839) (50,177) (64,662)
Net Position, January 1 57,849,390 50,619,069 7,230,321 31,716,705 31,766,882 (50,177)
Prior Period Adjustment - 2,123,522 (2,123,522) - - -
Net Position, December 31 56,729,298$ 57,849,390$ (1,120,092)$ 31,601,866$ 31,716,705$ (114,839)$
Governmental Activities Business-type Activities
-Revenues increased in the current year in property taxes, grants and investment earnings. The increase in
property taxes relates to an increase in the annual levy and the increase in investment earnings is due to annual
market conditions with the City’s investment portfolio.
-Expenditures increased during the year mainly in the urban development and housing for spending in the tax
increment spending plan.
29
The majority of governmental activities are funded through a tax levy and general revenue support. The following graph
depicts various governmental activities and shows the revenue and expenses directly related to those activities.
Expenses and Program Revenue - Governmental Activities
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
General
Government
Public Safety Public Works Culture and
Recreation
Urban
Development
and Housing
Interest on Long-
term Debt
Expenses Program Revenues
Revenue by Source - Governmental Activities
Charges for Services
12.7%
Operating Grants and
Contributions
5.0%Capital Grants and
Contributions
1.8%
Grants and
Contributions
Unrestricted
4.4%
Taxes
74.7%
Other
1.4%
30
Business-type Activities. Business-type activities are meant to be supported by program revenues. Program revenues
exceeded expenses in the Water, Sewer, Pavilion and Housing Authority Funds. Expenses exceeded program revenues in
the Refuse and Pavilion funds. Business-type activities decreased the City’s net position. Key elements of this decrease
are as follows:
Expenses and Program Revenues - Business Type Activities
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Water Sewer Garbage Storm Sewer Pavilion Housing
Authority
Expenses Program Revenues
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year. The table below outlines the governmental fund balances for the year ending
December 31, 2022.
Economic Other
General Development Tax Increment Tax Increment Debt Governmental Prior Year Increase/
Fund Authority Spending Plan Super Value Service Funds Total Total (Decrease)
Fund Balances
Nonspendable 292,322$ 5,078$ -$ -$ -$ 3,420$ 300,820$ 260,656$ 40,164$
Restricted for - 1,300,000 2,654,400 344,501 7,482,692 570,964 12,352,557 17,801,984 (5,449,427)
Committed for - 3,220,699 - - - 213,593 3,434,292 3,343,340 90,952
Assigned for 245,494 - - - - 2,517,487 2,762,981 587,008 2,175,973
Unassigned 8,475,285 - - - - (1,412,710) 7,062,575 6,390,561 672,014
Total 9,013,101$ 4,525,777$ 2,654,400$ 344,501$ 7,482,692$ 1,892,754$ 25,913,225$ 28,383,549$ (2,470,324)$
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances as
shown above. Additional information on the City’s fund balances can be found in Note 1 and 3.
31
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General
fund is shown in the table below. As a measure of the General fund’s liquidity, it may be use ful to compare both
unassigned fund balance and total fund balance to total fund expenditures. The total unassigned fund balance as a
percent of total fund expenditures is shown in the chart below along with total fund balance as a percent of total
expenditures.
Current Year Prior Year Increase/
Ending Balance Ending Balance (Decrease)
General Fund Fund Balances
Nonspendable 292,322$ 245,213$ 47,109$
Restricted - 33,754 (33,754)
Assigned 245,494 245,494 -
Unassigned 8,475,285 7,989,399 485,886
Total 9,013,101$ 8,513,860$ 499,241$
General fund expenditures 16,562,039$ 14,895,058$
Unassigned as a percent of expenditures 51.2%53.6%
Total fund balance as a percent of expenditures 54.4%57.2%
The fund balance of the City’s General fund increased during the current fiscal year as shown in the table above. The
increase is mainly due to increased revenue related to new development, including licenses, permits and other charges for
services. More detail on the fund balance increase is shown below in the budgetary highlights.
Other major governmental fund analysis follows:
Increase
2022 2021 (Decrease)
Economic Development Authority 4,525,777$ 4,511,489$ 14,288$
There was a slight increase in fund balance
due to revenues exceeding expenses.
Tax Increment Spending Plan 2,654,400$ -$ 2,654,400$
Increase in fund balance was due to a year end
transfer in that will be used to fund future projects.
Tax Increment Super Value 344,501$ 7,367,434$ (7,022,933)$
Decrease in fund balance was due to a year end
transfer out of the fund.
Debt Service Funds 7,482,692$ 7,097,802$ 384,890$
Total fund balance for debt service accounts increased
due to the transfers in to the fund.
32
Proprietary Funds. The City’s proprietary fund provides the same type of information found in the government -wide
financial statements, but in more detail. Net position of the City’s proprietary funds increased as follows :
Ending Ending
Net Position Net Position Increase/
2022 2021 (Decrease)
Water 7,468,860$ 7,544,723$ (75,863)$
The decrease is primarily attributed to a decrease in charges for
services in the current year compared to prior year.
Sewer 7,542,854$ 7,397,643$ 145,211$
The increase is primarily attributed to a increase in charges for
services in the current year compared to prior year.
Storm Sewer 10,421,953$ 10,316,111$ 105,842$
Increase is due to consistent fund avtivitity in which
revenues exceed expenses.
Pavillion 2,918,751$ 2,846,789$ 71,962$
The increase is primarily attributed to an increase in charges for
services in the current year compared to prior year.
General fund Budgetary Highlights
The City’s General fund budget was not amended during the year. The budget called for neither an increase nor a
decrease in fund balance. Total revenues show a positive budget variance due to licenses for permits, charges for
services and intergovernmental revenues being greater than expected. The expenditures were over budget due to higher
public works and culture & recreation costs than anticipated.
Original/Final
Budgeted Actual Variance with
Amount Amounts Final Budget
Revenues 16,173,620$ 17,081,280$ 907,660$
Expenditures 16,153,620 16,562,039 (408,419)
Excess of Revenues
Over Expenditures 20,000 519,241 499,241
Other Financing Sources (Uses)
Transfers out (20,000) (20,000) -
Net Change in Fund Balances - 499,241 499,241
Fund Balances, January 1 8,513,860 8,513,860
Fund Balances, December 31 8,513,860$ 9,013,101$ 499,241$
33
Capital Asset and Debt Administration
Capital Assets. The City’s net investment in capital assets for its governmental and business-type activities as of
December 31, 2022 is shown below. This investment in capital assets includes land, buildings, infrastructure, machinery
and equipment, vehicles, roads, highways and bridges. The total increase in the City’s investment in capital assets for the
current fiscal year for governmental and business-type activities is shown in the table below.
Additional information on the City’s capital assets can be found in Note 3C starting on page 81 of this report.
City of Hopkins’ Capital Assets
(Net of Depreciation)
Increase Increase Increase
2022 2021 (Decrease)2022 2021 (Decrease)2022 2021 (Decrease)
Land 6,157,677$ 6,157,677$ -$ 254,299$ 254,299$ -$ 6,411,976$ 6,411,976$ -$
Buildings 10,478,075 10,983,965 (505,890) 2,997,662 3,246,915 (249,253) 13,475,737 14,230,880 (755,143)
Infrastructure 67,210,558 54,718,276 12,492,282 30,883,872 32,128,537 98,094,430 86,846,813 11,247,617
Vehicles 2,053,554 2,138,349 (84,795) 648,992 591,226 57,766 2,702,546 2,729,575 (27,029)
Machinery and Equipment 2,032,877 2,465,179 (432,302) 249,365 284,869 (35,504) 2,282,242 2,750,048 (467,806)
Construction in Progress 8,051,242 20,002,683 (11,951,441) 13,867,864 9,430,096 4,437,768 21,919,106 29,432,779 (7,513,673)
Total 95,983,983$ 96,466,129$ (482,146)$ 48,902,054$ 45,935,942$ 4,210,777$ 144,886,037$ 142,402,071$ 2,483,966$
Percent increase (decrease)-0.5%9.2%1.7%
Governmental Activities Business-type Activities Total
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding consisting of general
obligation debt and general obligation revenue debt. While all of the City’s bonds have revenue streams, they are all
backed by the full faith and credit of the City.
City of Hopkins’ Outstanding Debt
Increase Increase
2022 2021 (Decrease)2022 2021 (Decrease)2022 2021
General Obligation Bonds 49,595,000$ 50,855,000$ (1,260,000)$ -$ -$ -$ 49,595,000$ 50,855,000$
Special Assessment Bonds 1,080,000 1,200,000 (120,000) - - - 1,080,000 1,200,000
G.O. Tax Increment Bonds 9,940,000 11,105,000 (1,165,000) - - - 9,940,000 11,105,000
G.O. Revenue Bonds - - - 21,405,000 17,875,000 3,530,000 21,405,000 17,875,000
Total 60,615,000$ 63,160,000$ (2,545,000)$ 21,405,000$ 17,875,000$ 3,530,000$ 82,020,000$ 81,035,000$
Percent increase (decrease)-4.0%19.7%
TotalGovernmental Activities Business-type Activities
The City’s total debt increased during the current fiscal year. The main reason for the increase in overall debt is due to the
City making regularly scheduled debt payments during the year and the issuance of new debt in 2022.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of
taxable property within the City. Net debt is debt payable solely from ad valorem taxes. There is no outstanding debt at
year end that is subject to the limit.
Additional information on the City’s long-term debt can be found in Note 3E starting on page 88 of this report.
34
Economic Factors and Next Year’s Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 202 3 budget. The City will
complete a street reconstruction and infrastructure project as part of its residential street improvement program.
Employee compensation will remain competitive in the market, which was most recently affirmed with a compensation
and classification study in 2017. Water and sewer rates were increased incrementally and based on operational needs.
The City continues to use a Financial Management Plan that can estimate the property tax increases or decreases on a
median value home as a basis for decision making. As a result of these factors the City prepared a budget for 2023 that
included a general fund increase of 6.27% and an overall increase to the tax levy of 3.45%.
During the current fiscal year, unassigned fund balance in the general fund was $8,475,285 or 51% of general fund
expenditures. The Office of the State Auditor recommends unassigned fund balances of no less than five months of
operating expenditures. The unassigned fund balance is used to pay for the City’s general fund obl igations until it receives
its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for all those with an interes t
in the government’s finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, City of Hopkins, 1010 First Street South,
Hopkins, MN 55343.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
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City of Hopkins, Minnesota
Statement of Net Position
December 31, 2022
Governmental Business-type
Activities Activities Total
Assets
Cash and temporary investments 35,362,017$ 6,950,940$ 42,312,957$
Receivables
Accrued interest 115,843 - 115,843
Taxes 144,862 1,189 146,051
Loans 12,013 - 12,013
Accounts 442,606 491,633 934,239
Leases - 1,055,809 1,055,809
Special assessments 4,135,947 - 4,135,947
Due from other governments 531,596 295,605 827,201
Internal balances 200,000 (200,000) -
Prepaid items 207,754 219,989 427,743
Inventories 94,541 35,251 129,792
Assets held for resale 689,792 - 689,792
Net pension asset 1,037,895 - 1,037,895
Capital assets
Land and construction in progress 14,208,919 14,122,163 28,331,082
Depreciable assets (net of accumulated depreciation)81,775,064 34,779,891 116,554,955
Total Assets 138,958,849 57,752,470 196,711,319
Deferred Outflows of Resources
Deferred pension resources 10,758,656 214,147 10,972,803
Deferred other postemployment benefits 524,305 88,991 613,296
Total Deferred Outflows of Resources 11,282,961 303,138 11,586,099
Liabilities
Accounts and contracts payable 5,845,462 413,184 6,258,646
Accrued salaries payable 604,076 123,874 727,950
Due to other governments 10,374 22,694 33,068
Accrued interest payable 794,037 291,691 1,085,728
Deposits payable 25,352 (2,002) 23,350
Unearned revenue 1,765,698 74,709 1,840,407
Noncurrent liabilities
Due within one year
Long-term liabilities 5,879,542 1,397,100 7,276,642
Due in more than one year
Long-term liabilities 58,990,702 21,401,739 80,392,441
Net pension liability 17,516,011 1,392,497 18,908,508
Other postemployment benefit liability 1,274,608 216,341 1,490,949
Total Liabilities 92,705,862 25,331,827 118,037,689
Deferred Inflows of Resources
Deferred pension resources 794,371 64,015 858,386
Deferred lease resources - 1,055,809 1,055,809
Deferred other postemployment benefits 12,279 2,091 14,370
Total Deferred Inflows of Resources 806,650 1,121,915 1,928,565
Net Position
Net investment in capital assets 42,085,537 27,274,646 69,360,183
Restricted for
Debt service 10,593,809 - 10,593,809
Economic development 4,310,946 - 4,310,946
Park improvements 548,853 - 548,853
Equity initiative 10,066 - 10,066
Net pension asset 829,919 - 829,919
Unrestricted (1,649,832) 4,327,220 2,677,388
Total Net Position 56,729,298$ 31,601,866$ 88,331,164$
The notes to the financial statements are an integral part of this statement.
39
City of Hopkins, Minnesota
Statement of Activities
For the Year Ended December 31, 2022
Operating Capital Grants
Charges for Grants and and
Expenses Services Contributions Contributions
Governmental Activities
General government 4,226,750$ 2,537,997$ 171,371$ -$
Public safety 9,841,518 174,224 267,120 -
Public works 4,149,085 132,884 326,918 542,947
Culture and recreation 4,183,137 1,021,994 652,685 -
Urban development and housing 8,036,771 - 118,029 -
Interest on long-term debt 1,703,818 - --
Total Governmental Activities 32,141,079 3,867,099 1,536,123 542,947
Business-type Activities
Water 2,354,679 2,336,580 101,662 -
Sewer 2,894,178 3,170,831 390 -
Garbage 1,327,982 1,182,495 38,077 -
Storm sewer 544,962 806,213 95 -
Pavilion 1,096,391 499,927 427 -
Housing authority 914,637 261,492 424,616 -
Total Business-type Activities 9,132,829 8,257,538 565,267 -
Total 41,273,908$ 12,124,637$ 2,101,390$ 542,947$
General Revenues
Taxes
Property taxes, levied for general purposes
Property taxes, levied for debt service
Tax increments
Franchise and other taxes
Grants and contributions not restricted to specific programs
Gain on sale of capital assets
Unrestricted investment earnings (loss)
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position, January 1
Net Position, December 31
Functions/Programs
Program Revenue
The notes to the financial statements are an integral part of this statement.
40
Governmental Business-type
Activities Activities Total
(1,517,382)$ -$ (1,517,382)$
(9,400,174) - (9,400,174)
(3,146,336) - (3,146,336)
(2,508,458) - (2,508,458)
(7,918,742) - (7,918,742)
(1,703,818) - (1,703,818)
(26,194,910) - (26,194,910)
- 83,563 83,563
- 277,043 277,043
- (107,410) (107,410)
- 261,346 261,346
- (596,037) (596,037)
- (228,529) (228,529)
- (310,024) (310,024)
(26,194,910) (310,024) (26,504,934)
13,533,152 417,999 13,951,151
4,003,048 - 4,003,048
4,108,301 - 4,108,301
1,160,763 - 1,160,763
1,356,976 250,000 1,606,976
112,496 - 112,496
328,320 (1,052) 327,268
471,762 (471,762) -
25,074,818 195,185 25,270,003
(1,120,092) (114,839) (1,234,931)
57,849,390 31,716,705 89,566,095
56,729,298$ 31,601,866$ 88,331,164$
Changes in Net Position
Net (Expenses) Revenues and
The notes to the financial statements are an integral part of this statement.
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42
FUND FINANCIAL STATEMENTS
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
43
City of Hopkins, Minnesota
Balance Sheet
Governmental Funds
December 31, 2022
101 204 206 231
Economic Tax Increment Tax Increment
General Development Spending Plan Super Valu
Assets
Cash and temporary investments 9,116,823$ 3,668,760$ 2,654,400$ 2,865,226$
Receivables
Accounts 206,476 - - -
Taxes 128,581 3,108 - -
Accrued interest 115,843 - - -
Loans - - - -
Special assessments - - - -
Due from other governments 78,222 - - -
Due from other funds 800,723 648,978 - -
Prepaid items 197,781 5,078 - -
Inventory 94,541 - - -
Assets held for resale - 227,404 - 462,388
Total Assets 10,738,990$ 4,553,328$ 2,654,400$ 3,327,614$
Liabilities
Accounts and contracts payable 775,253$ 13,118$ -$ 2,983,113$
Accrued salaries payable 548,787 12,517 - -
Due to other governments 7,424 - - -
Deposits payable 25,352 - - -
Unearned revenue 281,822 - - -
Due to other funds - - - -
Total Liabilities 1,638,638 25,635 - 2,983,113
Deferred Inflows of Resources
Unavailable revenues - taxes 87,251 1,916 - -
Unavailable revenues - special assessments - - - -
Unavailable revenues - intergovernmental - - - -
Total Deferred Inflows of Resources 87,251 1,916 - -
Fund Balances
Nonspendable 292,322 5,078 - -
Restricted - 1,300,000 2,654,400 344,501
Committed - 3,220,699 - -
Assigned 245,494 - - -
Unassigned 8,475,285 - - -
Total Fund Balances 9,013,101 4,525,777 2,654,400 344,501
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 10,738,990$ 4,553,328$ 2,654,400$ 3,327,614$
The notes to the financial statements are an integral part of this statement.
44
Debt Other Total
Service Governmental Governmental
Fund Funds Funds
7,489,179$ 6,408,625$ 32,203,013$
- 217,403 423,879
11,753 1,420 144,862
- - 115,843
- 12,013 12,013
3,907,339 228,608 4,135,947
- 453,374 531,596
- - 1,449,701
- 3,420 206,279
- - 94,541
- - 689,792
11,408,271$ 7,324,863$ 40,007,466$
20,425$ 2,010,898$ 5,802,807$
- 42,772 604,076
- 2,950 10,374
- - 25,352
- 1,483,876 1,765,698
- 1,249,701 1,249,701
20,425 4,790,197 9,458,008
- - 89,167
3,905,154 225,399 4,130,553
- 416,513 416,513
3,905,154 641,912 4,636,233
- 3,420 300,820
7,482,692 570,964 12,352,557
- 213,593 3,434,292
- 2,517,487 2,762,981
- (1,412,710) 7,062,575
7,482,692 1,892,754 25,913,225
11,408,271$ 7,324,863$ 40,007,466$
The notes to the financial statements are an integral part of this statement.
45
THIS PAGE IS LEFT
BLANK INTENTIONALLY
46
City of Hopkins, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
December 31, 2022
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances - Governmental 25,913,225$
Capital assets used in governmental activities are not financial resources
and therefore are not reported as assets in governmental funds.
Cost of capital assets 130,924,919
Less: accumulated depreciation (39,071,661)
Long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of
Bond principal payable (60,615,000)
Plus: premiums on bonds issued (3,223,446)
Other postemployment benefits payable (1,274,608)
Net pension liability (17,516,011)
Long-term assets from pensions reported in governmental activities are not financial
resources and therefore, are not reported as assets in the funds.
Net pension asset 1,037,895
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are unavailable in the funds.
Taxes 89,167
Special assessments 4,130,553
Intergovernmental 416,513
Internal service funds are used by the City to charge the costs of certain activities, such as
replacement of City vehicles and equipment. The assets and liabilities of the internal service funds
are included in the governmental activities in the statement of net position 6,235,478
Governmental funds do not report long-term amounts related to pensions and
other postemployment benefits
Deferred outflows of pension resources 10,758,656
Deferred inflows of pension resources (794,371)
Deferred outflows of other postemployment benefits 524,305
Deferred inflows of other postemployment benefits (12,279)
Governmental funds do not report a liability for accrued interest until due and payable.(794,037)
Total Net Position - Governmental Activities 56,729,298$
The notes to the financial statements are an integral part of this statement.
47
City of Hopkins, Minnesota
Statement of Revenues, Expenditures
and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2022
101 204 206 231
Economic Tax Increment Tax Increment
General Development Spending Plan Super Valu
Revenues
Property taxes 12,663,858$ 393,128$ -$ -$
Tax increment - - - 2,817,252
Franchise taxes 303,957 - - -
Licenses and permits 1,510,741 - - -
Intergovernmental 1,702,402 112,702 - -
Charges for services 615,175 - - -
Fines and forfeitures 110,300 - - -
Special assessments - - - -
Investment earnings 106,508 1,929 - 135,000
Miscellaneous 68,339 5,327 - -
Total Revenues 17,081,280 513,086 - 2,952,252
Expenditures
Current
General government 2,797,915 - - -
Public safety 8,994,489 - - -
Public works 2,104,472 - - -
Culture and recreation 2,264,610 - - -
Urban development and housing 116,177 468,798 3,750,000 725,830
Capital outlay
General government 118,452 - - -
Public safety 8,058 - - -
Public works 156,486 - - -
Culture and recreation 1,380 - - -
Urban development and housing - - - -
Debt service
Principal - - - -
Interest and other charges - - - -
Total Expenditures 16,562,039 468,798 3,750,000 725,830
Excess (Deficiency) of Revenues
Over (Under) Expenditures 519,241 44,288 (3,750,000) 2,226,422
Other Financing Sources (Uses)
Transfers in - - 6,404,400 -
Premium on bonds issued - - - -
Bonds issued - - - -
Transfers out (20,000) (30,000) - (9,249,355)
Total Other Financing Sources (Uses)(20,000) (30,000) 6,404,400 (9,249,355)
Net Change in Fund Balances 499,241 14,288 2,654,400 (7,022,933)
Fund Balances, January 1 8,513,860 4,511,489 - 7,367,434
Fund Balances, December 31 9,013,101$ 4,525,777$ 2,654,400$ 344,501$
The notes to the financial statements are an integral part of this statement.
48
Debt Other Total
Service Governmental Governmental
Fund Funds Funds
4,003,048$ 499,317$ 17,559,351$
- 1,291,049 4,108,301
- 856,806 1,160,763
- - 1,510,741
- 1,137,586 2,952,690
- 965,921 1,581,096
- - 110,300
761,644 172,257 933,901
68,932 17,076 329,445
- 409,827 483,493
4,833,624 5,349,839 30,730,081
- 234,005 3,031,920
- 54,350 9,048,839
- 163,943 2,268,415
- 1,224,454 3,489,064
- 42,841 5,103,646
- 27,871 146,323
- 77,504 85,562
- 1,928,465 2,084,951
- 244,185 245,565
- 2,924,910 2,924,910
5,530,000 - 5,530,000
1,998,626 3,327 2,001,953
7,528,626 6,925,855 35,961,148
(2,695,002) (1,576,016) (5,231,067)
2,931,911 3,741,000 13,077,311
238,981 - 238,981
2,985,000 - 2,985,000
(3,076,000) (1,165,194) (13,540,549)
3,079,892 2,575,806 2,760,743
384,890 999,790 (2,470,324)
7,097,802 892,964 28,383,549
7,482,692$ 1,892,754$ 25,913,225$
The notes to the financial statements are an integral part of this statement.
49
City of Hopkins, Minnesota
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
For the Year Ended December 31, 2022
Amounts reported for governmental activities in the statement of activities are different because
Total Net Change in Fund Balances - Governmental Funds (2,470,324)$
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense.
Capital outlays 1,889,639
Depreciation expense (2,426,404)
The issuance of long-term debt provides current financial resources to governmental funds, while
the repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also, governmental funds report
the effect of premiums, discounts and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the statement of activities.
Principal repayments 5,530,000
Bonds issued (2,985,000)
Premium on bonds issued (238,981)
Amortization of bond deferred charges on refunding (64,815)
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental fund because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however
interest expense is recognized as the interest accrues, regardless of when it is due.362,950
Certain revenues are recognized as soon as it is earned. Under the modified accrual
basis of accounting certain revenues cannot be recognized until they are available
to liquidate liabilities of the current period.
Special assessments (390,954)
Property taxes (23,151)
Intergovernmental (620,473)
Long-term pension activity is not reported in governmental funds.
Pension expense (569,344)
Pension revenue 158,638
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Other post employment benefits (59,999)
External revenues and expenditures of the internal service funds reported in the statement of
activities are not reported as revenues and expenditures in governmental funds.788,126
Change in Net Position - Governmental Activities (1,120,092)$
The notes to the financial statements are an integral part of this statement.
50
City of Hopkins, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
General Fund
For the Year Ended December 31, 2022
Original and
Final Actual Variance with
Budget Amounts Final Budget
Revenues
Taxes 13,601,439$ 12,967,815$ (633,624)$
Licenses and permits 526,015 1,510,741 984,726
Intergovernmental 1,502,066 1,702,402 200,336
Charges for services 326,250 615,175 288,925
Fines and forfeitures 191,300 110,300 (81,000)
Investment earnings 15,000 106,508 91,508
Miscellaneous 11,550 68,339 56,789
Total Revenues 16,173,620 17,081,280 907,660
Expenditures
Current
General government 2,717,660 2,797,915 (80,255)
Public safety 8,917,326 8,994,489 (77,163)
Public works 1,971,275 2,104,472 (133,197)
Culture and recreation 2,154,147 2,264,610 (110,463)
Urban development and housing 118,712 116,177 2,535
Capital outlay
General government 106,500 118,452 (11,952)
Public safety 22,000 8,058 13,942
Public works 144,000 156,486 (12,486)
Culture and recreation 2,000 1,380 620
Total Expenditures 16,153,620 16,562,039 (408,419)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,000 519,241 499,241
Other Financing Sources (Uses)
Transfers out (20,000) (20,000) -
Net Change in Fund Balances -499,241 499,241
Fund Balances, January 1 8,513,860 8,513,860 -
Fund Balances, December 31 8,513,860$ 9,013,101$ 499,241$
The notes to the financial statements are an integral part of this statement.
51
City of Hopkins, Minnesota
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Economic Development Fund
For the Year Ended December 31, 2022
Original and
Final Actual Variance with
Budget Amounts Final Budget
Revenues
Property tax 491,302$ 393,128$ (98,174)$
Intergovernmental - 112,702 112,702
Charges for services - --
Investment earnings 15,000 1,929 (13,071)
Miscellaneous - 5,327 5,327
Total Revenues 506,302 513,086 6,784
Expenditures
Capital outlay
Urban development and housing 472,072 468,798 3,274
Excess (Deficiency) of Revenues
Over (Under) Expenditures 34,230 44,288 10,058
Other Financing Sources (Uses)
Transfers out 30,000 (30,000) (60,000)
Net Change in Fund Balances 64,230 14,288 (49,942)
Fund Balances, January 1 4,511,489 4,511,489 -
Fund Balances, December 31 4,575,719$ 4,525,777$ (49,942)$
52
City of Hopkins, Minnesota
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Tax Increment Super Valu Fund
For the Year Ended December 31, 2022
Original and
Final Actual Variance with
Budget Amounts Final Budget
Revenues
Tax increment 2,350,000$ 2,817,252$ 467,252$
Investment earnings 20,000 135,000 115,000
Total Revenues 2,370,000 2,952,252 582,252
Expenditures
Capital outlay
Urban development and housing 750,000 725,830 24,170
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,620,000 2,226,422 606,422
Other Financing Sources (Uses)
Transfers out 1,400,000 (9,249,355) (10,649,355)
Net Change in Fund Balances 3,020,000 (7,022,933) (10,042,933)
Fund Balances, January 1 7,367,434 7,367,434 -
Fund Balances, December 31 10,387,434$ 344,501$ (10,042,933)$
53
703 707 740 747
Nonmajor
Proprietary
Water Sewer Storm Sewer Pavillion Funds
Assets
Current Assets
Cash and temporary investments 1,124,041$ 1,492,848$ 2,574,249$ 98,706$ 1,661,096$
Receivables
Accounts 162,845 274,065 11,351 - 43,372
Taxes - - - 1,189 -
Leases 47,247 - - - -
Due from other governments - - - - 295,605
Prepaid items - 145,973 1,300 59,568 13,148
Inventories 32,107 3,101 43 - -
Total Current Assets 1,366,240 1,915,987 2,586,943 159,463 2,013,221
Noncurrent Assets
Lease receivable 1,008,562 - - - -
Capital assets
Land 14,097 5,150 26,800 - 208,252
Construction in progress 6,679,211 3,730,898 3,457,755 - -
Buildings 39,589 6,500 6,500 3,272,851 6,113,399
Infrastructure 18,720,896 13,104,875 14,381,593 6,030,717 -
Machinery and equipment 413,394 913,124 9,000 360,561 1,094,869
Less accumulated depreciation (8,434,735) (6,259,521) (5,971,380) (3,631,240) (5,391,101)
Net Capital Assets 17,432,452 11,501,026 11,910,268 6,032,889 2,025,419
Total Noncurrent Assets 18,441,014 11,501,026 11,910,268 6,032,889 2,025,419
Total Assets 19,807,254 13,417,013 14,497,211 6,192,352 4,038,640
Deferred Outflows of Resources
Deferred pension resources 75,963 37,677 9,507 42,709 48,291
Deferred other postemployment benefits 27,162 12,521 2,782 14,099 32,427
Total Deferred Outflows of Resources 103,125 50,198 12,289 56,808 80,718
Business-type Activities - Enterprise Funds
City of Hopkins, Minnesota
Statement of Net Position (Continued on the Following Pages)
Proprietary Funds
December 31, 2022
The notes to the financial statements are an integral part of this statement.
54
Governmental
Activities -
Internal
Totals Service Funds
6,950,940$ 3,159,004$
491,633 18,727
1,189 -
47,247 -
295,605 -
219,989 1,475
35,251 -
8,041,854 3,179,206
1,008,562 -
254,299 -
13,867,864 497,199
9,438,839 -
52,238,081 -
2,790,948 9,845,780
(29,687,977) (6,212,254)
48,902,054 4,130,725
49,910,616 4,130,725
57,952,470 7,309,931
214,147 -
88,991 -
303,138 -
The notes to the financial statements are an integral part of this statement.
55
703 707 740 747
Nonmajor
Proprietary
Water Sewer Storm Sewer Pavillion Funds
Business-type Activities - Enterprise Funds
City of Hopkins, Minnesota
Statement of Net Position (Continued on the Following Pages)
Proprietary Funds
December 31, 2022
Liabilities
Current Liabilities
Accounts payable 42,876$ 173,754$ 646$ 51,327$ 144,581$
Deposits payable (2,002) - - - -
Accrued salaries payable 23,544 11,600 3,205 14,723 70,802
Due to other governments 2,118 - - 1,647 18,929
Due to other funds - - - - 200,000
Accrued interest payable 153,337 63,313 40,865 34,176 -
Unearned revenue 9,316 - - 65,393 -
Compensated absences payable - current 7,299 4,425 3,095 - 12,281
Bonds payable - current 485,450 377,540 312,010 195,000 -
Total Current Liabilities 721,938 630,632 359,821 362,266 446,593
Noncurrent Liabilities
Other postemployment benefits 66,031 30,439 6,764 34,275 78,832
Compensated absences payable 17,687 8,987 2,560 47,083 15,329
Net pension liability 476,356 246,698 64,384 291,096 313,963
Bonds payable 10,081,639 4,995,918 3,650,924 2,581,612 -
Total Noncurrent Liabilities 10,641,713 5,282,042 3,724,632 2,954,066 408,124
Total Liabilities 11,363,651 5,912,674 4,084,453 3,316,332 854,717
Deferred Inflows of Resources
Deferred pension resources 21,420 11,388 3,029 13,747 14,431
Deferred lease revenue 1,055,809 - - - -
Deferred other post employment benefits 639 295 65 330 762
Total Deferred Inflows of Resources 1,077,868 11,683 3,094 14,077 15,193
Net Position
Net investment in capital assets 7,918,048 6,127,568 7,947,334 3,256,277 2,025,419
Unrestricted (449,188) 1,415,286 2,474,619 (337,526) 1,224,029
Total Net Position 7,468,860$ 7,542,854$ 10,421,953$ 2,918,751$ 3,249,448$
The notes to the financial statements are an integral part of this statement.
56
Governmental
Activities -
Internal
Totals Service Funds
413,184$ 42,655$
(2,002) -
123,874 -
22,694 -
200,000 -
291,691 -
74,709 -
27,100 1,031,798
1,370,000 -
2,521,250 1,074,453
216,341 -
91,646 -
1,392,497 -
21,310,093 -
23,010,577 -
25,531,827 1,074,453
64,015 -
1,055,809 -
2,091 -
1,121,915 -
27,274,646 4,130,725
4,327,220 2,104,753
31,601,866$ 6,235,478$
The notes to the financial statements are an integral part of this statement.
57
703 707 740 747
Nonmajor
Proprietary
Water Sewer Storm Sewer Pavillion Funds
Operating Revenues
Charges for services 2,336,580$ 3,170,831$ 806,213$ 478,995$ 1,427,367$
Operating Expenses
Personal services 634,425 283,023 78,980 344,038 566,531
Contracted services - 1,698,435 - - 321,541
Supplies 153,059 49,519 59 29,052 68,446
Professional services 419,493 186,994 30,701 116,119 1,004,371
Communications 23,259 4,936 - - -
Insurance 37,471 20,461 - 9,549 14,263
Utilities 176,046 13,555 - --
Repairs and maintenance 324,099 186,391 44,091 42,267 885
Depreciation 328,280 340,043 319,362 475,931 266,582
Total Operating Expenses 2,096,132 2,783,357 473,193 1,016,956 2,242,619
Operating Income (Loss)240,448 387,474 333,020 (537,961) (815,252)
Nonoperating Revenues (Expenses)
Taxes - - - 417,999 -
Investment earnings (loss)- - - - (1,052)
Miscellaneous 101,662 390 95 21,359 17,123
Intergovernmental grants - - - 250,000 462,190
Gain on sale of capital assets - - - - -
Interest expense (258,547) (110,821) (71,769) (79,435) -
Total Nonoperating Revenues (Expenses)(156,885) (110,431) (71,674) 609,923 478,261
Income (Loss) Before Transfers 83,563 277,043 261,346 71,962 (336,991)
Transfers In - - - - -
Transfers Out (159,426) (131,832) (155,504) - (25,000)
Change in Net Position (75,863) 145,211 105,842 71,962 (361,991)
Net Position, January 1 7,544,723 7,397,643 10,316,111 2,846,789 3,611,439
Net Position, December 31 7,468,860$ 7,542,854$ 10,421,953$ 2,918,751$ 3,249,448$
Business-type Activities - Enterprise Funds
City of Hopkins, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2022
The notes to the financial statements are an integral part of this statement.
58
Governmental
Activities -
Internal
Totals Service Funds
8,219,986$ 670,948$
1,906,997 137,207
2,019,976 -
300,135 -
1,757,678 -
28,195 -
81,744 -
189,601 -
597,733 86,964
1,730,198 776,425
8,612,257 1,000,596
(392,271) (329,648)
417,999 -
(1,052) (1,125)
140,629 71,403
712,190 -
- 112,496
(520,572) -
749,194 182,774
356,923 (146,874)
- 935,000
(471,762) -
(114,839) 788,126
31,716,705 5,447,352
31,601,866$ 6,235,478$
The notes to the financial statements are an integral part of this statement.
59
703 707 740 747
Nonmajor
Proprietary
Water Sewer Storm Sewer Pavillion Funds
Cash Flows from Operating Activities
Receipts from customers and users 2,437,670$ 3,169,061$ 804,576$ 585,303$ 1,493,113$
Payments to suppliers (1,123,866) (2,167,019) (75,678) (209,447) (1,331,273)
Payments to employees (598,679) (275,415) (78,482) (334,089) (530,003)
Net Cash Provided (Used) by
Operating Activities 715,125 726,627 650,416 41,767 (368,163)
Cash Flows from
Noncapital Financing Activities
Payments on interfund balances - - - (250,377) -
Property taxes received - - - 419,246 -
Intergovernmental receipts - - - 250,000 462,190
Transfers from other funds - - - - -
Transfers to other funds (159,426) (131,832) (155,504) - (25,000)
Net Cash Provided (Used) by
Noncapital Financing Activities (159,426) (131,832) (155,504) 418,869 437,190
Cash Flows from Capital Financing Activities
Acquisition of capital assets (3,103,601) (953,936) (558,886) (66,010) 9,111
Proceeds from sale of capital assets - - - - -
Proceeds from bonds issued, net 4,156,286 274,041 137,020 - -
Interest paid on bonds (255,822) (152,983) (104,095) (85,920) -
Principal paid on bonds (242,600) (178,200) (119,200) (210,000) -
Net Cash Provided (Used)
by Capital Financing Activities 554,263 (1,011,078) (645,161) (361,930) 9,111
Cash Flows from Investing Activities
Interest received (paid) on investments - - 6 - (1,007)
Net Increase (Decrease) in
Cash and Cash Equivalents 1,109,962 (416,283) (150,243) 98,706 77,131
Cash and Cash Equivalents, January 1 14,079 1,909,131 2,724,492 - 1,583,965
Cash and Cash Equivalents, December 31 1,124,041$ 1,492,848$ 2,574,249$ 98,706$ 1,661,096$
Business-type Activities - Enterprise Funds
City of Hopkins, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2022
The notes to the financial statements are an integral part of this statement.
60
Governmental
Activities -
Internal
Totals Service Funds
8,489,723$ 742,603$
(4,907,283) (102,838)
(1,816,668) (87,512)
1,765,772 552,253
(250,377) -
419,246 -
712,190 -
- 935,000
(471,762) -
409,297 935,000
(4,673,322) (831,037)
- 112,496
4,567,347 -
(598,820) -
(750,000) -
(1,454,795) (718,541)
(1,001) (1,125)
719,273 767,587
6,231,667 2,391,417
6,950,940$ 3,159,004$
The notes to the financial statements are an integral part of this statement.
61
703 707 740 747
Nonmajor
Proprietary
Water Sewer Storm Sewer Pavillion Funds
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss)240,448$ 387,474$ 333,020$ (537,961)$ (815,252)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities
Depreciation 328,280 340,043 319,362 475,931 266,582
Other income related to operations 101,662 390 95 21,359 17,123
(Increase) decrease in assets
Receivables
Accounts (6,638) (2,160) (1,732) 27,320 (2,300)
Taxes - - - - -
Leases (1,055,809) - - - -
Due from other governments - - - - 50,923
Prepaids - (145,973) (1,300) (57,286) 325
Inventories (950) (360) - - -
Increase (decrease) in deferred outflows of resources
Deferred pension resources 3,964 6,012 2,774 6,622 9,423
Deferred other post employment benefit resources (15,571) (6,458) (1,183) (9,067) (18,996)
Increase (decrease) in liabilities
Accounts payable 10,053 139,605 473 43,532 84,157
Accrued salaries payable 273 (50) 462 1,498 21,726
Due to other governments 458 - -1,294 (6,249)
Unearned revenue 6,066 - -57,629 -
Other postemployment benefits 19,370 6,030 329 14,020 24,766
Compensated absences payable 4,866 2,950 2,063 (2,123) 5,471
Net pension liability 100,521 41,971 8,349 45,756 51,705
Increase (decrease) in deferred inflows of resources
Deferred pension resources (77,562) (42,748) (12,257) (46,760) (57,455)
Deferred lease resources 1,055,809 - - - -
Deferred other post employment benefit resources (115) (99) (39) 3 (112)
Net Cash Provided (Used) by
Operating Activities 715,125$ 726,627$ 650,416$ 41,767$ (368,163)$
Noncash Capital Financing
and Investing Activities
Amortization of premium (discount)71,979$ 38,437$ 27,484$ 3,865$ -$
Capital assets acquired on account 7,637$ 30,626$ -$ -$ -$
Business-type Activities - Enterprise Funds
City of Hopkins, Minnesota
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended December 31, 2022
The notes to the financial statements are an integral part of this statement.
62
Governmental
Activities -
Internal
Totals Service Funds
(392,271)$ (329,648)$
1,730,198 776,425
140,629 71,403
14,490 (1,191)
- 1,443
(1,055,809) -
50,923 -
(204,234) (1,475)
(1,310) -
28,795 -
(51,275) -
277,820 (14,399)
23,909 -
(4,497) -
63,695 -
64,515 -
13,227 49,695
248,302 -
(236,782) -
1,055,809 -
(362) -
1,765,772$ 552,253$
141,765$ -$
38,263$ -$
The notes to the financial statements are an integral part of this statement.
63
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BLANK INTENTIONALLY
64
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies
A.Reporting Entity
The City of Hopkins, Minnesota (the City) is a charter City, which was approved December 2, 1947. The City operates
pursuant to applicable Minnesota laws and statutes. The governing body of the City is a Council – Manager form of
government. The financial statements of the City have been prepared in conformity with U.S. generally acc epted
accounting principles as applied to governmental units by the Government Accounting Standards Board (GASB).
In accordance with GASB pronouncements, the City’s financial statements include all funds and departments of the City
and its component units, for which the City is considered to be financially accountable. A blended component unit,
although legally separate entity is, in substance, part of the City’s operations and so data from this unit is combined with
data of the primary government. The City’s blended component unit has a March 31 year-end. The fund statements shown
represent a year-end nine months prior to the City's December 31 year-end.
Housing and Redevelopment Authority in and for the City of Hopkins (HRA)
The HRA was created by the City to carry out certain redevelopment projects and low -income rental housing. The HRA's
governing body is the same as the governing body of the primary government in that all members of the Hopkins City
Council are also the Hopkins Housing and Redevelopment Authority Commissioners. The City of Hopkins in its capacity
as the HRA Board of Directors, has operational responsibility for the HRA. Therefore, there is a burden relationship
between the primary government and the component unit. The housing activity is supported in part by federal subsidies.
There is an extensive trust agreement between the HRA and HUD regarding the facility. The HRA is included in the City’s
enterprise funds. Separate financials are not prepared.
B.Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the activities of the City and its component unit. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contribution s that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C.Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary funds financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
65
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures , as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the
current period. All other revenue items are considered to be measurable and available only when cash is received by the
City.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded
on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which
the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property
taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for
which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility
requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the
resources are required to be used or the year when use is first permitted, matching requirements, in which the City must
provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are
provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions
must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
The City reports the following major governmental funds:
The General fund is the City’s primary operating fund. It accounts for all financial resources of the City, except those
required to be accounted for in another fund.
The Economic Development Authority fund accounts for development opportunities of the city. Sources of
funds are derived from grants received and an annual tax levy.
The Tax Increment Spending Plan fund accounts for resources and spending of current and future tax increment.
The Tax Increment Super Valu fund accounts for the activities of the Super Valu tax increment development district.
Sources of funds are a tax increment levy.
The Debt Service fund accounts for the servicing of general long-term debt not being financed by proprietary funds.
66
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
The City reports the following major proprietary funds:
The Water fund accounts for the activities of the water distribution system the City maintains.
The Sewer fund accounts for the activities of the City’s sewage collection operations.
The Storm Sewer fund accounts for the costs associated with the City’s storm sewer system.
The Pavilion fund accounts for the operations and improvements of the city owned ice arena.
The City reports the following internal service funds:
The Equipment Replacement fund accounts for the City’s funds accumulated for the acquisition of large equipment.
The Employee Benefits fund accounts for the City’s funds accumulated for the compensated absences and other post -
employment benefits..
The Insurance Risk fund accounts all revenues and expenses associated with insurance premiums, deductibles, and
claims for general liability and workers compensation.
As a general rule, the effect of interfund activity has been eliminated from government -wide financial statements.
Exceptions to this general rule are payments, where the amounts are reasonable equivalent in value to the interfund
services provided and charges between the City’s utility function and various other functions of the City . Elimination of
these charges would distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in con nection with proprietary
funds’ principal ongoing operations. The principal operating revenues of the City enterprise funds are charges to
customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
67
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balances
Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, commercial paper,
government securities and short-term investments with original maturities of three months or less from the date of
acquisition. The proprietary funds’ portion in the government-wide cash and temporary investments pool is considered to
be cash and cash equivalents for purposes of the statement of cash flows.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings on investments are allocated to the individual funds based upon the average of month -
end cash and investment balances.
The City may also invest idle funds as authorized by Minnesota statutes, as follows:
1.Direct obligations or obligations guaranteed by the United States or its agencies.
2.Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the
highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a
final maturity of thirteen months or less.
3.General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations
rated “AA” or better.
4.General obligations of the Minnesota Housing Finance Agency rated “A” or better.
5.Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6.Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System.
7.Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less.
8.Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions
qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System
with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
9.Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally reco gnized rating agency.
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. The City’s recurring fair value measurements are listed in detail on
page 77.
68
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Property Taxes
The City Council annually adopts a tax levy and certifies it to the County in December for collection in the following year.
The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable
property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected
by the County Treasurer and tax settlements are made to the City during January, June and December each year.
Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred
inflow of resources for delinquent taxes not received within 60 days after year end in the governmental financial
statements.
Accounts Receivable
Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund
receivables are also included for services provided in 2022. The City annually certifies delinquent water, sewer and storm
sewer accounts to the County for collection in the following year. As a result, there has been no allowance for doubtful
accounts established in the enterprise funds.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivables upon certification to the County. Special assessments are recognized as
revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable
are offset by a deferred inflow of resources in the fund financial statements.
Leases Receivable
The City’s leases receivable are measured at the present value of lease payments expected to be received during the
lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the
lessee’s revenue. The variable payments are recorded as an inflow of resources in the period the payment is received.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of
the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized
on a straight-line basis over the term of the lease.
Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of t he fiscal
year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported
as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded
as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. Prepaid expenditures of governmental funds are reported using the
consumption method and recorded as expenditures at the time of consumption.
69
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Property Held for Resale
The City acquires properties for redevelopment purposes. These properties are reported at their net realizable value in the
financial statements. Any costs incurred that are above a property’s net realizable value are reported as expenditures of
the current period.
Capital Assets
Capital assets, which include land, buildings, equipment and infrastructure assets (e.g., roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements and the proprietary fund
financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated capital assets are
recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Assets not being depreciated include land and construction in progress. Buildings, equipment, and infrastructure of the
City and the Housing Authority are depreciated using the straight-line method over the estimated useful lives as follows:
Useful Live
Assets in Years
Buildings 30 to 40
Mains and Lines 40 to 50
Streets 20 to 25
Improvements 10 to 20
Vehicles 3 to 30
Equipment 3 to 20
Deferred Outflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has two items that qualify for reporting in this category. Deferred pension resources and other
postemployment benefit (OPEB) resources are reported only in the statements of net position. These items result from
actuarial calculations and current year pension contributions and OPEB contributions made subsequent to the
measurement date.
70
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Compensated Absences
The City compensates all employees upon termination for unused vacation or flex leave. Employees hired prior to
August 1, 1998 may opt to have sick leave, at the rate of 8 hours for each calendar month of full -time service, instead of
flex leave.
Employees hired prior to August 1, 1998, that have not opted for flex leave, shall be entitled to severance pay, after
completion of five years of continuous City employment. Severance pay is calculated by multiplying the total numb er
of continuous years in the City employ and/or accumulated sick leave by the daily wage rate prevailing at date of
severance, at one day per year of such employment, to a maximum of 20 days. Such severance money shall be paid in
case of separation caused by death, eligible retirements, or medically attested disability preventing an employee from
performing the major duties of the position or separation for non -disciplinary reasons.
Accumulated vacation, flex and vested severance pay is reported as an expense and an accrued liability as the benefits
accrue to employees in the government-wide and proprietary fund financial statements. A liability for these amounts is
reported in the governmental funds only if benefits have matured as a resu lt of employee resignations and retirements.
The employee benefits internal service fund reports the governmental funds’ liability for compensated absences on the
accrual basis.
For the governmental activities, compensated absences liability is generally liquidated by the general and by the
parking, communications, Depot Coffee House and arts center special revenue funds.
Long-term Obligations
In the government-wide financial statements, and proprietary funds types in the fund financial statements, long -term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities
or proprietary funds type statement of net position. The recognition of bond premiums and discounts are amortized over
the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as an expense in the period incurred.
In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
71
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA
except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll
paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. The General, parking, communications, depot coffee house and arts center special
revenue fund are typically used to liquidate the governmental net pension liability.
For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the defined benefit
plan administered by Hopkins Fire Department Relief Association and additions to and deductions from the plan’s
fiduciary net position have been determined on the same basis as they are reported by the plan. Investments are reported
at fair value. The General fund is typically used to liquidate the governmental net pension liability.
The total pension expense for the General Employee Plan (GERP), Police and Fire Plan (PEPFP), and the Hopkins Fire
Relief Association is as follows:
Public Employees Retirement
Association of Minnesota (PERA)Total All
GERP PEPFP FRA Plans
City's proportionate share 790,150$ 994,593$ ($34,137)1,750,606$
Proportionate share of State's contribution 27,336 107,337 - 134,673
Total pension expense 817,486$ 1,101,930$ (34,137)$ 1,885,279$
Postemployment Benefits Other Than Pensions
Under Minnesota statute §471.61, subdivision 2b, public employers must allow retirees and their dependents to continue
coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be
receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group
plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent coverage
immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially determined,
in accordance with GASB Statement 75, at January 1, 2022.
Deferred Inflows of Resources
In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of
accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported
only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources:
property taxes, special assessments and intergovernmental. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available. The City also recognizes a deferred lease receivable, which is
reported under both the modified accrual and full accrual basis.
72
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 1: Summary of Significant Accounting Policies (Continued)
Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position.
The items, deferred pension resources, deferred other postemployment benefit resources and deferred lease resources,
are reported only in the statement of net position and results from actuarial calculations involving net differences
between projected and actual earnings on plan investments, changes in proportions, and future lease receipts,
respectively.
Fund Balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the
City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council which is the City’s highest level of decision-making authority. Committed amounts cannot be used for
any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable
and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established
by the City Council itself or by an official to which the governing body delegates the autho rity. The City Council has
adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the Finance
Director.
Unassigned - The residual classification for the General fund and also negative residual amounts in other funds.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it
is the City’s policy to use committed first, then assigned, and finally unassigned amounts.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund of a
minimum of 5 months or 42% of the previous year’s budgeted expenditures.
Net Position
Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred
inflows of resources. Net position is displayed in three components:
a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquire capital assets.
b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
c. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net
investment in capital assets”.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, then unrestricted resources as they are needed.
73
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 2: Stewardship, Compliance and Accountability
A. Budgetary Information
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds except the Tax Increment Spending Plan (Major), Hennepin County CDBG, 5th Avenue Flats, and
American Rescue Plan Act special revenue funds, the debt service funds and the capital projects funds, which are not
budgeted. A capital improvement plan is reviewed annually by the City Council for the capital projects funds and utility
funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The
appropriations are not reflected in the financial statements. All annual appropriations lapse at fiscal year-end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements and set forth
in Section 7.04 of the City Charter.
1. The City Manager shall, at the first regular council meeting in September, submit to the Council a proposed
budget and an explanatory budget message in a form and manner as prescribed by the City Charter.
2. The Council shall determine the plan and time of the public hearings on the budget to obtain taxpayer comments.
3. The Council shall adopt the tax levy by resolution no later than a December date, which is annually established by
law for the county auditor to levy taxes. The budget shall set forth the total for each budgeted fund with such
segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget
control.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however,
any revisions that alter the total expenditures of any fund must be approved by the City Council and are limited to
the amount revenues exceed the budgets or authorize the transfer of sums from unexpended balances to other
purposes. Budgeted expenditure appropriations lapse at year-end. The level of legal control is at the fund level.
5. The Council made no supplemental budgetary appropriation throughout the year.
B. Excess of Expenditures Over Appropriations
For the year ended December 31, 2022 expenditures exceeded appropriations in the following funds:
Excess of
Expenditures
Over
Budget Actual Appropriations
Major
General 16,153,620$ 16,562,039$ 408,419$
Nonmajor
Parking 162,030 163,943 1,913
Depot Coffee House 254,169 303,760 49,591
Tax Increment District Moline 944,101 2,750,047 1,805,946
Tax Increment District Marketplace and Main 201,410 205,403 3,993
Fund
The excess expenditures were funded by revenues in excess of expectations.
74
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 2: Stewardship, Compliance and Accountability (Continued)
C. Fund Balance Deficits
At December 31, 2022, the following funds had deficit fund balances or net position.
Amount
Nonmajor Governmental
Chemical Assessment 51,685$
Parking 6,406
Art Center 357,204
Depot House Coffee 214,597
Tax Increment District Entertainment District 20,088
5th Avenue Flats 399,379
Tax Increment District Moline 184,048
Tax Increment District Marketplace and Main 177,447
Fund
These deficits will be funded through future tax levies, contributions, grants, charges for services or developer payments:
Note 3: Detailed Notes on All Funds
A. Deposits and Investments
Deposits
Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and
investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside
party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those
depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. Th e fair value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the excepti on of
irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral
pledged equal to 100 percent of the deposits not covered by insurance or bonds.
75
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
Authorized collateral in lieu of a corporate surety bond includes:
• United States government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
• General obligation securities of any state or local government with taxing powers which is rated “A” or better by a
national bond rating service, or revenue obligation securities of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service;
• General obligation securities of a local government with taxing powers may be pledged as collateral against funds
deposited by that same local government entity;
• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard
& Poor’s Corporation; and
• Time deposits that are fully insured by any Federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral. The selection should be approved by the City.
At year end, the City’s carrying amount of deposits was $10,280,491 and the bank balance was $10,654,986. The bank
balance was covered by federal depository insurance totaling $500,000. The remaining balance was covered by collateral
held by the City’s agent in the City’s name.
Investments
In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the
valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is
based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets an d
liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation
techniques as follows:
• Level 1 - Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in act ive
markets accessible at the measurement date of identical financial assets and liabilities.
• Level 2 - Financial assets and liabilities are values based on quoted prices for similar assets, or inputs that are
observable, either directly or indirectly for substantially the full term through corroboration with observable market
data.
• Level 3 - Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset,
inputs that reflect the reporting entity's own assumptions about the assumptions market participants and would
use in pricing the assets.
76
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
As of December 31, 2022, the City had the following investments that are insured or registered, or securities held by the
City’s agent in the City’s name.
Credit Segmented
Quality/Time
Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3
Pooled Investments at Amortized Costs
Brokered Certificates of Deposit N/A less than 1 year 489,596$ 489,596$ -$
Brokered Certificates of Deposit N/A 1 to 5 years 947,539 947,539 -
Non-pooled investments at amortized costs
Money Market Funds N/A less than 6 months 133,731 133,731$
Non-pooled Investments at Fair Value
US Government Securities AA less than 1 year 9,239,962 9,239,962 - -
US Treasury Bill AA less than 1 year 8,008,914 8,008,914 - -
US Treasury Bill AA 1 to 5 years 3,814,453 3,814,453 - -
US Treasury Bill AAA less than 1 year 2,341,749 2,341,749 - -
US Agency Securities AA less than 1 year 2,300,076 - 2,300,076 -
US Agency Securities AAA less than 1 year 1,374,335 - 1,374,335 -
Municipal Bonds N/A less than 1 year 3,290,933 - - -
Municipal Bonds N/A 1 to 5 years 97,928 - - -
Total Investments 32,039,216$ 23,538,809$ 5,111,546$ -$
Types of Investments
Fair Value Measurement Using
(1) Ratings are provided by Moody’s where applicable to indicate associated credit risk.
(2) Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available.
77
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
The investments of the City are subject to the following risks:
•Credit Risk. Is the risk of loss due to failure of the securities issuer or backer. Thus, designated depositories shall
have insurance through the FDIC (Federal Insurance) or the SIPC (Securities Investor Protection Corporation). To
ensure safety, it is the policy of the City that when considering an investment, all depositories under consideration
be cross-checked against existing investments to make certain that funds in excess of insurance limits are not in
the same institution unless collateralized. . Minnesota statutes limit the City’s investments to the list on page 68 of
the notes.
•Custodial Credit Risk. The City will minimize deposit custodial risk, which is risk of loss due to failure of the
depository bank (credit union), by obtaining collateral or bonds for all uninsured amounts on deposit, and by
obtaining necessary documentation to show compliance with state law and a perfected security interest under
federal law.
•Concentration of Credit Risk. Is the risk of loss attributed to the magnitude of a government’s investment in a
single issuer.
•Interest Rate Risk. Is the risk that the market value of securities in the portfolio will fall due to changes in general
interest rates. The City will minimize interest rate risk by structuring the investment portfolio so that securities
mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open
market prior to maturity.
It is the policy of the City to invest public funds in a manner which will provide the highest investment return with the
maximum security while meeting the daily cash flow requirements of the City and conforming to all state and local
statutes governing the investment of public funds. The purpose of this Policy statement is to establish standards
governing the investment of City funds. In accordance with Minnesota Statutes 385.05and 118A.02 theFinance Director is
authorized to invest the City funds in accordance with Minnesota Statutes 118A.04and118A.05which defines the types of
securities and financial instruments the City is allowed to purchase.
A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows:
Carrying Amount of Deposits 10,280,491$
Cash on Hand 3,250
Investments 32,029,216
Total 42,312,957$
78
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
B.Capital Assets
Capital asset activity for the year ended December 31, 2022 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated
Land 6,157,677$ -$ -$ 6,157,677$
Construction in progress 20,002,683 2,386,844 (14,338,285) 8,051,242
Total Capital Assets not
Being Depreciated 26,160,360 2,386,844 (14,338,285) 14,208,919
Capital Assets Being Depreciated
Buildings 20,724,855 - - 20,724,855
Infrastructure 80,369,314 14,338,285 - 94,707,599
Vehicles 5,343,517 263,211 (338,579) 5,268,149
Machinery and Equipment 6,362,266 70,628 (74,518) 6,358,376
Total Capital Assets
Being Depreciated 112,799,952 14,672,124 (413,097) 127,058,979
Less Accumulated Depreciation for
Buildings (9,740,890) (505,890) - (10,246,780)
Infrastructure (25,651,038) (1,846,003) - (27,497,041)
Vehicles (3,205,168) (348,006) 338,579 (3,214,595)
Machinery and Equipment (3,897,087) (502,930) 74,518 (4,325,499)
Total Accumulated Depreciation (42,494,183) (3,202,829) 413,097 (45,283,915)
Total Capital Assets Being
Depreciated, Net 70,305,769 11,469,295 - 81,775,064
Governmental Activities
Capital Assets, Net 96,466,129$ 13,856,139$ (14,338,285)$ 95,983,983$
79
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets not Being Depreciated
Land 254,299$ -$ -$ 254,299$
Construction in progress 9,430,096 4,437,768 - 13,867,864
Total Capital Assets not
Being Depreciated 9,684,395 4,437,768 - 14,122,163
Capital Assets Being Depreciated
Buildings 9,428,662 10,177 - 9,438,839
Infrastructure 52,172,071 66,010 - 52,238,081
Vehicles 1,539,457 181,279 - 1,720,736
Machinery and Equipment 1,069,136 1,076 - 1,070,212
Total Capital Assets
Being Depreciated 64,209,326 258,542 - 64,467,868
Less Accumulated Depreciation for
Buildings (6,181,747) (259,430) - (6,441,177)
Infrastructure (20,043,534) (1,310,675) - (21,354,209)
Vehicles (948,231) (123,513) - (1,071,744)
Machinery and Equipment (784,267) (36,580) - (820,847)
Total Accumulated Depreciation (27,957,779) (1,730,198) - (29,687,977)
Total Capital Assets Being
Depreciated, Net 36,251,547 (1,471,656) - 34,779,891
Business-type Activities
Capital Assets, Net 45,935,942$ 2,966,112$ -$ 48,902,054$
80
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
Depreciation expense was charged to functions/programs of the City as follows:
Governmental Activities
General government 272,320$
Public safety 638,203
Public works 1,865,183
Parks and recreation 427,123
Total Depreciation Expense - Governmental Activities 3,202,829$
Business-type Activities
Water 328,280$
Sewer 340,043
Refuse 72,546
Storm Sewer 319,362
Pavillion 475,931
Housing Authority 194,036
Total Depreciation Expense - Business-type Activities 1,730,198$
C. Interfund Receivables, Payables and Transfers
The composition of interfund balances as of December 31, 2022 is as follows:
Purpose Amount
General Nonmajor Governmental Funds To eliminate cash deficit 600,723$
General Nonmajor Enterprise Funds Development loan 200,000
Economic Development Nonmajor Governmental Funds To eliminate cash deficit 648,978
Subtotal Interfund Balances 1,449,701
Interfund Activity Eliminated From Government-Wide Statements (1,249,701)
Total Internal Balances - Government-Wide Statements 200,000$
Payable FundReceivable Fund
The interfund receivables and payables are to eliminate negative cash balances between funds, to allow for development
loans or to facilitate a project in another fund.
81
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
The composition of interfund transfers for the year ended December 31, 2022 is as follows:
Debt Nonmajor TIF Internal
Service Governmental Spending Plan Service Fund Total
Transfer Out
General -$ 20,000$ -$ -$ 20,000$
Economic Development - 30,000 - - 30,000
Tax Increment Super Valu 1,909,355 1,500,000 5,840,000 - 9,249,355
Debt Service - 2,141,000 - 935,000 3,076,000
Nonmajor Governmental 550,794 50,000 564,400 - 1,165,194
Nonmajor Enterprise 25,000 - - - 25,000
Water 159,426 - - - 159,426
Sewer 131,832 - - - 131,832
Storm Sewer 155,504 - - - 155,504
Total 2,931,911$ 3,741,000$ 6,404,400$ 935,000$ 14,012,311$
Fund
Transfer In
During the year ended December 31, 2022, the City made the following one-time transfers:
• Annual transfer from the General Fund to the non-major governmental Depot Coffee House fund to pay for
operating costs of the facility.
• Annual transfer from the Economic Development fund to the Art Center fund totaling $30,000 to pay for operating
costs of the facility.
• Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments.
• Transfers from Water, Sewer and Storm Sewer funds to Debt Service funds for bond payment
contributions.
• Annual transfer, from the non-major governmental Communication fund to the Art Center fund totaling
$50,000 for operating costs of the facility.
• Annual transfer from non-major governmental Capital Improvement fund to the Debt Service fund for annual debt
service payments.
• Annual transfer from non-major enterprise Refuse fund to the Debt Service fund for debt payments.
• Transfers of unobligated TIF revenue between TIF Districts to fund construction projects
• Transfers from non-major governmental funds to the Permanent Improvement Revolving fund
and other non-major governmental funds for bond proceeds.
82
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
D. Long-term Debt
General Obligation Bonds
The City issues general obligation bonds to provide funds street reconstruction, utility improvements and major capital
facilities. General obligation bonds have been issued for general government activities. In addition, general obligation
bonds have been issued to refund bond issues.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. General obligation bonds
currently outstanding are as follows:
Authorized Issue Maturity Balance at
and Issued Date Date Year End
GO CIP Bonds
Series 2012A 1,905,000$ 0.35 - 1.80 %9/13/2012 2/1/2023 185,000$
GO Refunding Bonds
Series 2014B 5,700,000 2.00 11/20/2014 2/1/2023 770,000
GO SROP Bonds
Series 2015A 4,100,000 2.00 - 3.00 5/25/2015 2/1/2031 2,615,000
GO Tax Abatement Bonds
Series 2015B 2,940,000 2.00 - 3.20 5/25/2015 2/1/2036 2,195,000
GO Improvement
Series 2016A 4,335,000 2.00 - 2.50 7/20/2016 2/1/2032 3,035,000
GO Tax Abatement Bonds
Series 2016B 1,630,000 2.00 - 2.20 7/20/2016 2/1/2032 1,135,000
GO Bonds
Series 2016C 1,875,000 2.00 11/10/2016 2/1/2026 880,000
GO Bonds
Series 2017A 11,795,000 3.00 - 4.00 6/20/2017 2/1/2033 9,230,000
GO Tax Abatement Bonds
Series 2017B 1,735,000 3.00 - 4.00 6/20/2017 2/1/2033 1,370,000
GO Bonds
Series 2018A 6,715,000 3.00 - 4.00 5/1/2018 2/1/2034 5,525,000
GO Bonds
Series 2019A 11,550,000 3.00 - 5.00 4/2/2019 2/1/2034 10,385,000
GO Bonds
Series 2020A 2,560,000 2.00 - 5.00 6/9/2020 2/1/2036 2,560,000
Equipment Certificate Bonds
Series 2020A 225,000 2.00 - 5.00 6/9/2020 2/1/2036 225,000
GO Bond Bonds
Series 2021A 3,720,000 2.10 - 3.00 6/9/2021 2/1/2036 3,720,000
GO Bonds
Series 2022A 2,085,000 2.00 - 3.00 4/26/2022 2/1/2038 2,085,000
Equipment Certificate Bonds
2022A 900,000 0.35 - 4.0 4/26/2022 2/1/2033 900,000
Total G.O. Bonds 46,815,000$
Interest
RateDescription
83
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
Annual debt service requirements to maturity for general obligation bonds outstanding at December 31, 2022 are as
follows:
Year Ending
December 31,Principal Interest Total
2023 3,970,000$ 1,448,971$ 5,418,971$
2024 3,585,000 1,297,225 4,882,225
2025 3,705,000 1,170,725 4,875,725
2026 3,820,000 1,037,970 4,857,970
2027 3,720,000 905,379 4,625,379
2028 - 2032 19,725,000 2,598,551 22,323,551
2033 - 2037 8,200,000 341,438 8,541,438
2038 90,000 1,350 91,350
Total 46,815,000$ 8,801,609$ 55,616,609$
Governmental Activities
General Obligation Improvement Bonds
The following bonds were used to for street reconstruction and major capital improvements to buildings. They will be
repaid with ad valorem taxes, special assessments levied against the properties and tax increments. The bonds are
backed by the full faith and credit of the City.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Improvement
Bonds, Series 2014A 1,895,000$ 2.00 - 3.13 %7/10/2014 2/1/2030 1,080,000$
G.O. Improvement and Refunding
Bonds, Series 2019B 1,220,000 5.00 11/26/2019 2/1/2026 660,000
G.O. Improvement and Refunding
Bonds, Series 2020B 2,495,000 2.00 - 3.00 12/30/2020 2/1/2027 2,120,000
Total G.O. Improvement Bonds 3,860,000$
Interest
Description Rate
Annual debt service requirements to maturity for general obligation improvement bonds outstanding at
December 31, 2022 are as follows:
Year Ending
December 31,Principal Interest Total
2023 605,000$ 113,594$ 718,594$
2024 590,000 92,369 682,369
2025 620,000 71,069 691,069
2026 640,000 48,869 688,869
2027 480,000 30,419 510,419
2028 - 2030 925,000 28,114 953,114
Total 3,860,000$ 384,434$ 4,244,434$
Governmental Activities
84
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
General Obligation Revenue Bonds
The following bonds were used to finance improvements to water, sewer and storm sewer infrastructure; and
improvements to the ice arena. Bonds are funded through revenue in the water, sewer, storm sewer funds; and a general
tax levy in the pavilion fund. The bonds are backed by the full faith and credit of the City.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Revenue Bonds,
Series 2010B 875,000$ 0.50 - 2.90 %11/17/2010 2/1/2023 85,000$
G.O. Revenue Bonds,
Series 2016C 930,000 2.00 - 3.00 11/10/2016 2/1/2026 630,000
G.O. Revenue Bonds,
Series 2017B 1,435,000 2.13 - 2.75 6/20/2017 2/1/2033 1,130,000
G.O. Revenue Bonds,
Series 2018B 3,285,000 3.00 5/1/2018 2/1/2034 2,740,000
G.O. Revenue Bonds,
Series 2019A 635,000 3.00 - 5.00 4/2/2019 2/1/2035 575,000
G.O. Revenue Bonds,
Series 2019B 795,000 2.13 - 2.75 11/26/2019 2/1/2026 400,000
G.O. Revenue Bonds,
Series 2020A 5,800,000 2.00 - 5.00 6/9/2020 2/1/2036 5,800,000
G.O. Revenue Bonds,
Series 2020B 1,495,000 2.00 - 3.00 12/30/2020 2/1/2027 1,315,000
G.O. Revenue Bonds,
Series 2021A 4,450,000 1.15 - 2.00 6/9/2021 2/1/2036 4,450,000
G.O. Revenue Bonds,
Series 2022A 4,280,000 3.00 - 4.00 4/26/2022 2/1/2038 4,280,000
Total G.O. Revenue Bonds 21,405,000$
Rate
Interest
Description
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending
December 31,Principal Interest Total
2023 1,370,000$ 638,300$ 2,008,300$
2024 1,540,000 557,118 2,097,118
2025 1,590,000 490,394 2,080,394
2026 1,520,000 436,719 1,956,719
2027 1,580,000 385,994 1,965,994
2028 - 2032 7,755,000 1,207,600 8,962,600
2033 - 2037 5,695,000 320,158 6,015,158
2038 355,000 5,325 360,325
Total 21,405,000$ 4,041,608$ 25,446,608$
Business-type Activities
85
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
General Obligation Tax Increment Bonds
The following bonds will be repaid from revenues generated from tax increment financing districts.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Tax Increment Revenue Refunding
Bonds, Series 2010B 1,585,000$ 0.50 - 2.90 %11/17/2010 2/1/2023 185,000$
G.O. Tax Increment Revenue Refunding
Bonds, Series 2015C 4,340,000 2.00 - 2.75 11/24/2015 2/1/2030 2,640,000
G.O. Tax Increment Revenue Refunding
Bonds, Series 2015D 7,355,000 2.00 - 2.75 12/22/2015 2/1/2030 4,795,000
G.O. Tax Increment Revenue Refunding
Bonds, Series 2016D 3,540,000 2.00 - 3.00 11/10/2016 2/1/2029 2,320,000
Total G.O. tax increment bonds 9,940,000$
Interest
Description Rate
Annual debt service requirements to maturity for tax increment bonds are as follows:
Year Ending
December 31,Principal Interest Total
2023 1,230,000$ 229,933$ 1,459,933$
2024 1,090,000 201,013 1,291,013
2025 1,295,000 171,644 1,466,644
2026 1,350,000 139,844 1,489,844
2027 1,410,000 107,450 1,517,450
2028 - 2030 3,565,000 115,405 3,680,405
Total 9,940,000$ 965,289$ 10,905,289$
Governmental Activities
86
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
Changes in Long-term Liabilities
During the year ended December 31, 2022, the following changes occurred in long-term liabilities.
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
G.O. bonds 50,855,000$ 2,985,000$ (4,245,000)$ 49,595,000$ 3,970,000$
Special assessment bonds 1,200,000 - (120,000) 1,080,000 605,000
G.O. tax increment bonds 11,105,000 - (1,165,000) 9,940,000 1,230,000
Bond premium 3,334,840 238,981 (350,375) 3,223,446 -
Bond discount (1,407) - 1,407 - -
Total Bonds Payable 66,493,433 3,223,981 (5,878,968) 63,838,446 5,805,000
Compensated Absences
Payable 982,103 1,386,143 (1,336,448) 1,031,798 74,542
Governmental Activity
Long-term Liabilities 67,475,536$ 4,610,124$ (7,215,416)$ 64,870,244$ 5,879,542$
Business-type Activities
Bonds Payable
G.O. revenue bonds 17,875,000$ 4,280,000$ (750,000)$ 21,405,000$ 1,370,000$
Bond premium 1,130,285 287,348 (142,540) 1,275,093 -
Bond discount (775) - 775 - -
Total Bonds Payable 19,004,510 4,567,348 (891,765) 22,680,093 1,370,000
Compensated Absences
Payable 105,519 127,307 (114,080) 118,746 27,100
Business-type Activity
Long-term Liabilities 19,110,029$ 4,694,655$ (1,005,845)$ 22,798,839$ 1,397,100$
87
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 3: Detailed Notes on All Funds (Continued)
E.Components of Fund Balance
At December 31, 2022, portions of the City’s fund balance are not available for appropriation due to not being in spendable
form (Nonspendable), legal restrictions (Restricted), or City Council action (Committed). The following is a summary of
the components of fund balance:
Economic Tax Increment Tax Increment Debt Nonmajor
General Development Spending Plan Super Valu Service Governmental Total
Nonspendable
Inventory $ 94,541 $ -$-$ - $ - $ - $ 94,541
Prepaid items 197,781 5,078 - -- 3,420 206,279
Total Nonspendable $ 292,322 $ 5,078 $-$ - $ - $ 3,420 $ 300,820
Restricted for
Debt service $ -$ -$-$ - $ 7,482,692 $ - $ 7,482,692
Tax increment - -- -- -
Economic development -1,300,000 2,654,400 344,501 - - 4,298,901
Special revenue - - - - -22,111 22,111
Park improvements - - - - -548,853 548,853
Total Restricted $ -$ 1,300,000 $ 2,654,400 $ 344,501 $ 7,482,692 $ 570,964 $ 12,352,557
Committed to
Economic development $ - $ 3,220,699 $-$ - $ - $ - $ 3,220,699
Communications - -- --213,593 213,593
Total Committed $ -$ 3,220,699 $-$ - $ - $ 213,593 $ 3,434,292
Assigned to
Park improvements $ -$ -$-$ - $ - $ 363,803 $ 363,803
Streets - -- --1,057,767 1,057,767
Capital improvement - -- --1,095,917 1,095,917
Economic development 245,494 - - - - -245,494
Total Assigned $ 245,494 $ -$-$ - $ -$ 2,517,487 $ 2,762,981
88
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 4: Postemployment Benefits Other Than Pensions
A. Plan Description
The City's single employer defined benefit OPEB plan provides OPEB for all permanent full-time employees of the
City. The City's OPEB plan is administered by the City. The City does not administer a trust and therefore does not
issue a separate financial statements. The City is funding this liability on a pay-as-you-go-basis.
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. The City provides
subsidized benefits to active employees, who were hired prior to July 1, 1993 and have been wit h the City for at least
ten years and are either (1) age 60 year or older or (2) eligible for full PERA retirement benefits. Employees retiring
by June 30, 2007 will receive full single health and life insurance coverage until age 65; employees retiring be tween
July 1, 2007 and December 31, 2009 will receive $500 per month towards the cost of single health and life insurance
until age 65; and employees retiring after December 31, 2009 will receive $15 per month times years of service
(maximum of $500 per month) towards the cost of single health and life insurance until age 65. Currently 16
employees meet those eligibility requirements. Benefit and eligibility provisions are established through negotiations
and are renegotiated every two years.
At December 31, 2022, the following employees were covered by the benefit terms:
Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 14
Active Plan Members 105
Total Plan Members 119
B. Funding Policy
The contribution requirements of plan members and the City are established and may be amended by LOGIS’ Board of
Directors. The required contributions are based on projected pay-as-you-go financing requirements. The City contributed
$140,880 to the plan for the year ended December 31, 2022. As of January 1, 2022, there was one retiree that was
receiving health benefits from the plan.
C. Actuarial Methods and Assumptions
The City’s total OPEB liability of $1,490,949 was measured as of December 31, 2022, and the total OPEB liability used to
calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2022.
The actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified. Each assumption was reviewed for reasonableness with the source
information as well as for consistency with the other economic assumptions.
Discount Rate 2.00%
20-Year Municipal Bond Yield 2.00%
Inflation Rate 2.00%
Medical Trend Rate 6.50% in 2022 gradually decreasing to 5.00%, then 4.00%
Payroll Growth Rate 3.25% but varies based on years of service
89
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 4: Postemployment Benefits Other Than Pensions (Continued)
D.Changes in the Total OPEB Liability
Total OPEB
Liability
(a)
Balances at December 31, 2021 1,066,957$
Changes for the Year:
Service cost 72,396
Interset 21,602
Changes in assumptions or other inputs 12,393
Differences between expected and actual experience 369,886
Changes in assumptions or other inputs 66,761
Benefit payments (119,046)
Net Changes 423,992
Balances at December 31, 2022 1,490,949$
For the fiscal year ending December 31, 2022 the following assumption changes were made:
•The health care trend rates, mortality tables, salary increase rates, retirement rates, and withdrawal rates were
updated.
•The inflation rate was changed from 2.5 percent to 2.00 percent.
For the fiscal year ending December 31, 2022 the following benefit changes were made:
•City Employee/s were offerred early retirement.
E.Changes in Total OPEB Liability
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it w ere
calculated using a discount rate that is 1-percentage point lower (1.00 percent) or 1-percentage-point higher (3.00
percent) than the current discount rate:
1 Percent 1 Percent
Decrease (1%)Current (2%)Increase (3%)
1,592,512$ 1,490,949$ 1,396,412$
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were
calculated using a healthcare cost trend rate that is 1 -percentage point lower (1.00 percent) or 1-percentage-point higher
(3.00 percent) than the current trend rate:
Healthcare Cost
1 Percent Decrease Trend Rates 1 Percent Increase
(5.5% Decreasing (6.5% Decreasing (7.5% Decreasing
to 4%)to 5%)to 6%)
1,367,818$ 1,490,949$ 1,634,946$
90
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 4: Postemployment Benefits Other Than Pensions (Continued)
F. OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
Amounts reported as deferred inflows and outflows of resources related to OPEB are as follow:
Deferred Outflows Deferred Inflows
of Resources of Resources
Liability (gains)/losses 401,431$ -$
Changes in actuarial assumptions 70,982 14,370
Contributions to OPEB Subsequent
to the Measurement Date 140,883 -
Total 613,296$ 14,370$
Deferred outflows of resources totaling $140,883 related to City contributions to the OPEB plan subsequent to the
measurement date will be recognized as a reduction of the OPEB liability and expense in the year ended
December 31, 2023 as follows:
Year ended December 31:
2023 52,993$
2024 52,993
2025 52,993
2026 52,993
2027 52,993
Thereafter 193,078
Note 5: Defined Benefit Pension Plans - Statewide
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the
Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and
administered in accordance with Minnesota statutes, chapters 353 and 356. PERA’s defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees
Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.
Public Employees Police and Fire Plan
The Public Employees Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Public
Employees Police and Fire Plan also covers police officers and firefighters belonging to a local relief association that
elected to merge with and transfer assets and administration to PERA.
91
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 5: Defined Benefit Pension Plans - Statewide (Continued)
B. Benefits Provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only
be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them
yet are bound by the provisions in effect at the time they last term inated their public service.
General Employee Plan Benefits
General Employee Plan benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for
PERA's Coordinated Plan members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coo rdinated
members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for
each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for average salary for all
years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90
and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for
unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of
the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a
maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the
June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit
for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a
reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal
retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members
retiring under Rule of 90 are exempt from the delay to normal retirement.
Public Employees Police and Fire Plan Benefits
Benefits for the Public Employees Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for
Public Employees Police and Fire Plan members first hired after June 30, 2014 vest on a prorated basis from 50 percent
after ten years up to 100 percent after twenty years of credited service. The annuity accrual rate is 3.0 percent of average
salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is
available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent.
Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective
date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months b ut
less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
C. Contributions
Minnesota statutes chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state Legislature.
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2021 and
the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General
Employees Fund for the years ending December 31, 2022, 2021 and 2020 were $453,608, $428,662 and $421,975,
respectively. The City’s contributions were equal to the required contributions for each year as set by state statute.
92
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 5: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2022
and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the
Police and Fire Fund for the years ending December 31, 2022, 2021 and 2020 were $618,899, $607,594 and $563,971,
respectively. The City’s contributions were equal to the required contributions for each year as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2022, the City reported a liability of $6,240,986 for its proportionate share of the General Employees
Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s
contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net
pension liability associated with the City totaled $182,944. The net pension liability was measured as of June 30, 2022,
and the total pension liability used to calculate the net pension liability was determined by an actuar ial valuation as of that
date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022 relative to the
total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was
0.0788 percent, which was an increase of 0.0009 percent from its proportion measured as of June 30, 2021.
City's Proportionate Share of the Net Pension Liability 6,240,986$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 182,944
Total 6,423,930$
For the year ended December 31, 2022, the City recognized pension expense of $790,150 for its proportionate share of the
General Employees Plan’s pension expense. In addition, the City recognized an additional $27,336 as pension expense
(and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General
Employees Fund.
At December 31, 2022, the City reported its proportionate share of the General Employees Plan’s deferred outflows of
resources and deferred inflows of resources, related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience 52,129$ 65,990$
Changes in Actuarial Assumptions 1,396,803 25,448
Net Difference Between Projected and
Actual Earnings on Plan Investments 136,229 -
Changes in Proportion 19,217 41,304
Contributions to PERA Subsequent
to the Measurement Date 230,398 -
Total 1,834,776$ 132,742$
93
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 5: Defined Benefit Pension Plans - Statewide (Continued)
The $230,398 reported as deferred outflows of resources related to pensions resulting from the City’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
515,749$
581,292
(189,808)
564,403
2023
2024
2025
2026
Police and Fire Fund Pension Costs
At December 31, 2022, the City reported a liability of $12,667,522 for its proportionate share of the Police and Fire Fund’s
net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share
of the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2021 through June 30, 2022 relative to the total employer contributions received
from all of PERA’s participating employers. The City’s proportionate share was 0.2911 percent which was a decrease of
0.005 percent from its proportionate share measured as of June 30, 2021.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2021.
The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation and
$9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct
state was paid on October 1, 2020. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and
Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will
continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
Retirement System) is 90 percent funded, whichever occurs later.
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule
of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension
allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need to recognize their
proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding
situation accounting and financial reporting requireme nts. For the year ended December 31, 2022, the City recognized
pension expense of $994,593 for its proportionate share of the Police and Fire Plan’s pension expense. In addition, the
City recognized an additional $107,337 as pension expense (grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $9 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
allocation schedules for the $9 million in supplemental state aid. The City recognized $26,199 for the year ended
December 31, 2022 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State
of Minnesota’s on-behalf contributions to the Police and Fire Fund.
94
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 5: Defined Benefit Pension Plans - Statewide (Continued)
At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of
resources and deferred inflows of resources, from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and
Actual Experience 781,673$ 18,170$
Changes in Actuarial Assumptions 7,551,817 134,897
Net Difference Between Projected and
Actual Earnings on Plan Investments 119,075 -
Changes in Proportion 137,949 136,618
Contributions Paid to PERA subsequent
to the Measurement Date 319,530 -
Total 8,910,044$ 289,685$
The $319,530 reported as deferred outflows of resources related to pensions resulting from the City’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
1,625,047$
1,611,765
1,393,029
2,617,023
1,053,965
2023
2024
2025
2026
2027
E.Long -Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on
a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of
expected future rates of return are developed for each major asset class. These ranges are combined to produce an
expected long-term rate of return by weighting the expected future rates of return by the target asset allocation
percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Asset Class
Domestic Stocks 33.5 %5.10 %
Private Markets 25.0 5.90
Fixed Income 25.0 0.75
International Stocks 16.5 5.30
Total 100.0 %
Target Expected Real
Allocation Rate of Return
Long-term
95
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 5: Defined Benefit Pension Plans - Statewide (Continued)
F. Actuarial Assumptions
The total pension liability in the June 30, 2022 actuarial valuation was determined using individual entry-age normal
actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total
liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a
number of national investment consulting firms. The review provided a range of return investment return rates d eemed to
be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of reasonableness
for financial reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and Fire
Plan benefit increase is fixed at 1 percent per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year
of service to 3.0 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from
11.75 percent after one year of service to 3.0 percent after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub -2010 General Employee Mortality Table. Mortality
rates for the Police and Fire Plan is based on the Pub-2010 Public Safety Employee Mortality tables. The tables are
adjusted slightly to fit PERA’s experience.
Actuarial assumptions used in the June 30, 2022 valuation were based on the results of actuarial experience studies. The
most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption changes
were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-year
experience study for the Police and Fire Plan was completed in 2020 and adopted by the Board and became effective with
the July 1, 2021 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2022:
General Employees Fund
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
Changes in Plan Provisions:
• There were no changes in plan provisions since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• The single discount rate changed from 6.50 percent to 5.40 percent.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
96
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 5: Defined Benefit Pension Plans - Statewide (Continued)
G. Discount Rate
The discount rate used to measure the total pension liability in 2022 was 6.50 percent. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and employers will be made at the rate
specified in statute. Based on these assumptions, the fiduciary net position of the General Employees Fund and Police
and Fire Fund were projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members through June 30, 2060. Beginning in fiscal year ended June 30, 2061 for the Pol ice
and Fire Fund, projected benefit payments exceed the funds' projected fiduciary net position. Benefit payments projected
after were discounted at the municipal bond rate of 3.69 percent (based on the weekly rate closest to but not later than
the measurement date of the Fidelity "20-Year Municipal GO AA Index"). The resulting equivalent single discount rate of
5.40 percent for the Police and Fire Fund was determined to give approximately the same present value of projected
benefits when applied to all years of projected benefits as the present value of projected benefits using 6.5 percent
applied to all years of projected benefits through the point of asset depletion and 3.69 percent thereafter.
H. Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point
higher than the current discount rate:
1 Percent 1 Percent
Decrease (5.50%) Current (6.50%) Increase (7.50%)
General Employees Fund 9,857,964$ 6,240,986$ 3,274,506$
1 Percent 1 Percent
Decrease (4.40%) Current (5.40%) Increase (6.40%)
Police and Fire Fund 19,170,670$ 12,667,522$ 7,410,116$
I. Pension Plan Fiduciary Net Position
Detailed information about each defined benefit pension plan’s fiduciary net position is available in a separately issued
PERA financial report that includes financial statements and required supplementary information. That report may be
obtained on the Internet at www.mnpera.org.
97
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 6: Defined Benefit Pension Plans - Fire Relief Association
A. Plan Description
Firefighters of the City of Hopkins are members of the Hopkins Fire Department Relief Association. The Association is the
administrator of the single-employer defined benefit pension plan available to firefighters. The plan was established in
1909 and is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and the Association’s by -laws. It is
governed by a Board of Trustees made up of six members elected by the members of the Association for three year
terms, and the Mayor, City Clerk and Fire Chief, who serve as ex-officio voting members of the Board of Trustees. As of
December 31, 2022, membership includes 34 active participants and 14 vested terminated employees entitled to benefit
but not yet receiving them.
The Association issues a publicly available financial report that includes financial statements and required supplementary
information of the Hopkins Fire Relief Association. That report may be obtained by writing to the Hopkins Fire Relief
Association, 1010 First St S, Hopkins, MN 55343.
For financial reporting purposes, the Association’s financial statements are not included with the City financial statements
because the Association is not a component unit of the City. The Association does not have any component units.
B. Benefits Provided
A fire fighter who completes at least 20 years as an active member of the Depa rtment is entitled, after age 50, to a full
service pension upon retirement.
The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed
fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to
60 percent of the pension as prescribed by the bylaws. This percentag e increases 4 percent per year so that at 20 years of
service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the
age of 50 years and have completed at least 10 years of active membership are entitled to a reduced service pension not
to exceed the amount calculated by multiplying the member's service pension for the completed years of service times
the applicable non-forfeitable percentage of pension.
C. Contributions
Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is
funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes
and voluntary City contributions (if applicable). The State of Minnesota contributed $136,068 in fire state aid to the plan
on behalf of the City Fire Department for the year ended December 31, 2022, which was recorded as a revenue. Required
employer contributions are calculated annually based on statutory provisions. The City made voluntary contributions of
$43,000 to the plan.
98
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
D.Pension Costs
At December 31, 2022, the City reported a net pension asset of ($1,037,895) for the Volunteer Firefighter Fund. The net
pension asset was measured as of December 31, 2022. The total pension liability used to calculate the net pension asset
in accordance with GASB 68 was determined by PERA, applying an actuarial formula to specific census data certified by
the Department. The following table presents the changes in net pension liability (asset) during the year:
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability (Asset)
(a)(b)(a-b)
Beginning Balance January 1, 2022 2,866,971$ 3,603,773$ (736,802)$
Changes for the Year
Service cost 95,679 - 95,679
Interest on pension liability (asset)164,943 - 164,943
Contributions (state and local)- 43,000 (43,000)
Nonemployer contributions - 128,228 (128,228)
Projected investment return - 206,013 (206,013)
Gain or loss - 209,413 (209,413)
Benefit payments (188,165) (188,165) -
Administrative expenses - (24,939) 24,939
Total Net Changes 72,457 373,550 (301,093)
Ending Balance December 31, 2022 2,939,428$ 3,977,323$ (1,037,895)$
For the year ended December 31, 2022, the City recognized negative pension expense of $214,205.
At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources, and
contributions subsequent to the measurement date, to the plan from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between Expected and
Actual Economic Experience -$ 205,221$
Changes in Actuarial Assumptions 47,916 -
Net Difference between Projected and
Actual Earnings on Plan Investments - 230,738
Contributions to Plan Subsequent
to the Measurement Date 180,067 -
Total 227,983$ 435,959$
99
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
Deferred outflows of resources totaling $180,067 related to pensions resulting from the City’s contributions to the plan
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2023.
2023 (64,858)$
2024 (168,524)
2025 (69,677)
2026 (65,065)
2027 (19,919)
E. Actuarial Assumptions
The total pension liability at December 31, 2022 was determined using the entry age normal actuarial cost method and the
following actuarial assumptions:
Retirement Eligibility at the Later of Age 50 or 20 Years of Service
Inflation 3.00% per year
Investment Rate of Return 6.00%
There were no changes in actuarial assumptions in 2022.
The long-term expected rate of return on pension plan investments was determined using a building -block method in
which best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each
asset class using the plan’s target investment allocation along with long-term return expectations by asset class. Inflation
expectations were applied to derive the nominal rate of return for the portfolio.
The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in
the following table:
Asset Class
Domestic Equity 35.00 %5.10 %
International Stocks 15.00 5.30
Bonds 45.00 0.75
Cash and Equivalents 5.00 -
Total 100.00 %
Long-term
Target Expected Real
Allocation Rate of Return
100
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
F. Discount Rate
The discount rate used to measure the total pension liability was 5.0 percent. The projection of cash flows used to
determine the discount rate assumed that contributions to the plan will be made as specified in statute. Based on that
assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make
all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
G. Pension Asset Sensitivity
The following presents the City’s net pension asset for the plan, calculated using the discount rate disclosed in the
preceding paragraph, as well as what the City’s net pension asset would be if it were calculated using a discount rate
1 percent lower or 1 percent higher than the current discount rate:
1 Percent 1 Percent
Decrease (4.00%) Current (5.00%) Increase (6.00%)
Defined Benefit Plan (941,797)$ (1,037,895)$ (1,128,171)$
H. Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in a separately-issued report. That report may be
obtained by writing to the Hopkins Fire Relief Association, 1010 First St. S., Hopkins, MN 55343.
Note 7: Other Information
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The City participates in a public entity risk pool to mitigate its
exposure to these risks. Workers compensation and property and liability coverage are provided through a pooled self-
insurance plan with other cities. Settled claims have not exceeded insurance coverage in any of the past three fiscal years
and no significant reductions in coverage from the prior year. The City pays an annual premium based on prior claims
history for its workers compensation coverage. The public entity risk pool is responsible for the payment of all associated
claims. The City has a $20,000 deductible per occurrence with a maximum per year out of pocket of $40,000, for its
property and liability coverage. The public entity risk pool is responsible for all losses in excess of $20,000 per occurrence
and all losses occurring after the $40,000 maximum City out of pocket costs.
B. Tax Increment Financing Districts
The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any
disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated
that they are not aware of any instances of noncompliance which would have a material effect on the financial
statements.
The City has entered into “pay as you go” Tax Increment Financing notes within its TIF districts. These notes are payable
only to the extent of the increment received. As a result they are a commitment wi thin the district but they have
not met the criteria to be reported as a liability on the statement of net position.
101
City of Hopkins, Minnesota
Notes to the Financial Statements
December 31, 2022
Note 8: Subsequent Event
On January 17, 2023 the Council approved the issuance of bonds to finance the 2023 street and utility reconstruction
projects, mill and overlay project, and purchase a log truck. On February 21, 2023, the City issued General Obligation
Temporary Bonds, Series 2023A in the amount of $7,3 35,00.
Note 9: Change in Accounting Principles
For fiscal year 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No.87, Leases.
GASB Statement No.87 enhances the relevance and consistency of information of the government’s leasing activities. It
establishes requirements for the lease accounting based on the principle that leases are financing of the right of use of
the underlying assets. A lessor is required to recognize lease receivable and a deferred inflow of resources. These
changes were incorporated in the City’s financial statements. The City’s recognition of the beginning balances related to
the lease receivable and deferred lease resources were equal balances and no effect on the beginning net position of the
Government Activities.
102
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
103
City of Hopkins, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2022
Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
6/30/2022 0.0788 % 6,240,986$ 182,944$ 6,423,930$ 5,903,632$ 105.7 %76.7 %
6/30/2021 0.0779 3,326,679 101,617 3,428,296 5,607,708 59.3 87.0
6/30/2020 0.0790 4,736,411 146,169 4,882,580 5,636,022 84.0 79.0
6/30/2019 0.0806 4,456,193 138,494 4,594,687 5,706,340 78.1 80.2
6/30/2018 0.0811 4,499,095 147,648 4,646,743 5,453,809 82.5 79.5
6/30/2017 0.0806 5,145,451 64,662 5,210,113 5,355,225 96.1 75.9
6/30/2016 0.0833 6,763,547 88,347 6,851,894 4,796,820 141.0 68.9
6/30/2015 0.0831 4,306,673 - 4,306,673 4,993,621 86.2 78.2
City's
Liability as a
Net Position
Proportion of
Percentage of
as a PercentageCovered
Plan Fiduciary
City's
Proportionate
Share of the
Net Pension
Payroll of the Total
Liability ((a+b)/c)Net Pension Liability
the Net Pension
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - General Employees Fund
Contributions in
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess) Payroll
Ending (a)(b)(a-b)(c)
12/31/2022 453,608$ 453,608$ -$ 6,048,111$ 7.50 %
12/31/2021 428,662 428,662 - 5,715,487 7.50
12/31/2020 421,975 421,975 - 5,626,334 7.50
12/31/2019 428,720 428,720 - 5,716,269 7.50
12/31/2018 421,073 421,073 - 5,614,313 7.50
12/31/2017 399,239 399,239 - 5,323,185 7.50
12/31/2016 390,718 390,718 - 5,209,569 7.50
12/31/2015 355,542 355,542 - 4,740,557 7.50
(b/c)
Contributions as
a Percentage of
Payroll
Covered
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
104
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Notes to the Required Supplementary Information - General Employees Fund
Changes in Actuarial Assumptions
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes. The mortality improvement scale was changed from Scale MP -2019 to Scale MP-2020.
2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was
decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019
experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of
retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as
recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in
the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub-2010
General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP -
2014 disabled annuitant mortality table to the PUB -2010 General/Teacher disabled annuitant mortality table, with
adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed
spouse age difference was changed from two years older for females to one year older. The assumed number of married
male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married
female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was
changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year.
2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for
vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0
percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed
post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through
2044 and 2.5 percent per year thereafter.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was c hanged from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions
were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll
growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5
percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.
105
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Notes to the Required Supplementary Information - General Employees Fund (Continued)
Changes in Plan Provisions
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for pr ivatizations occurring after June 30, 2020.
2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0
million per year. The state’s special funding contribution was changed prospectively, requiring $1 6.0 million due per year
through 2031.
2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
resulting in actuarial equivalence after June 30, 2024. Interest credited on member contribu tions decreased from 4.00
percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements
on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not
apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect
revised mortality and interest assumptions.
2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 201 7 and 2018,
and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from
$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund,
which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million.
Upon consolidation, state and employer contributions were revised.
106
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
6/30/2022 0.2911 % 12,667,522$ 553,357$ 13,220,879$ 3,536,378$ 358.2 %70.5 %
6/30/2021 0.2961 2,285,578 102,749 2,388,327 3,498,947 65.3 93.7
6/29/2020 0.2989 3,939,822 - 3,939,822 3,372,410 116.8 87.2
6/30/2019 0.3098 3,298,134 - 3,298,134 3,266,833 101.0 89.3
6/30/2018 0.2918 3,110,287 - 3,110,287 3,075,717 101.1 88.8
6/30/2017 0.2800 3,780,333 - 3,780,333 2,305,336 164.0 85.4
6/29/2016 0.2800 11,236,887 - 11,236,887 2,990,626 375.7 63.9
6/29/2015 0.2690 3,056,469 - 3,056,469 2,370,520 128.9 86.6
City's
Proportionate
Share of the
Net Pension
Liability as a Plan Fiduciary
City's Percentage of Net Position
Liability (a/c)Net Pension Liability
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s PERA Contributions - Police and Fire Fund
Relation to the
Statutorily Statutorily Contribution City's
Required Required Deficiency Covered
Year Contribution Contribution (Excess) Payroll
Ending (a)(b)(a-b)(c)
12/31/2022 639,711$ 639,711$ -$ 3,614,186$ 17.7 %
12/31/2021 618,899 618,899 - 3,496,605 17.7
12/30/2020 607,594 607,594 - 3,432,736 17.7
12/31/2019 563,971 563,971 - 3,327,260 17.0
12/31/2018 515,478 515,478 - 3,181,963 16.2
12/31/2017 484,481 484,481 - 2,990,626 16.2
12/30/2016 460,042 460,042 - 2,839,765 16.2
12/30/2015 384,024 384,024 - 2,370,520 16.2
(b/c)
Contributions as
a Percentage of
Payroll
Covered
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
107
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund
Changes in Actuarial Assumptions
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate
changed from 6.50 percent to 5.40 percent.
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes. The inflation assumption was changed from 2.50 percent to 2.25 percent. The payroll growth
assumption was changed from 3.25 percent to 3.00 percent. The base mortality table for healthy annuitants and
employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement
scale was changed from MP-2019 to MN-2020. The base mortality table for disabled annuitants was changed from the
RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-
2010 Public Safety disabled annuitant mortality table (with future mortality improv ement according to Scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall
impact is a decrease in gross salary increase rates. Assumed rates of retirement were changed as recommended in the
July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early
retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations. Assumed rates of disability were increased for ages 25 -44 and decreased
for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female
members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied.
2020 - The mortality projection scale was changed from MP-2018 to MP-2019.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2016 to MP-2017. As set by statute, the assumed post-
retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to
1.0 percent for all years, with no trigger.
2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is
proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed,
resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested
deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non -vested
members. The base mortality table for healthy annuitants was change d from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016.
The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality
tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of
service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age
difference was changed from separate assumptions for male members (wives assumed to be three years younger) and
female members (husbands assumed to be four years older) to the assumption that males are two years older than
females. The assumed percentage of female members electing joint and survivor annui ties was increased. The assumed
post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064
and 2.50 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5
percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from
7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future
salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50
percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5
percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter.
108
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund (Continued)
Changes in Plan Provisions
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - There were no changes in plan provisions since the previous valuation.
2019 - There were no changes in plan provisions since the previous valuation.
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through
2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was
added to the existing $9.0 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and
2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member
contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of
pay, effective January 1, 2020. Employer contributions were changed from 16.20 percent to 16.95 percent of pay,
effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. Interest credited on member contributions
decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred aug mentation was changed to 0.00
percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is
proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed,
resulting in fewer retirements. The combined service annuity (CSA) load was 30.00 percent for vested and non-vested,
deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non -vested
members. The base mortality table for healthy annuitants was chang ed from the RP-2000 fully generational table to the
RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was
changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed
termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select p eriod of
three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female
members was decreased from 65.00 percent to 60.00 percent. Assumed age difference was changed from separate
assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to
be four years older) to the assumption that males are two years older than females. The assumed percentage of female
members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was
changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The single
discount rate was changed from 5.60 percent per annum to 7.50 percent per annu m.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed,
from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
109
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios
2022 2021 2020 2019 2018 2017 2016 2015
(Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report
Date 2021) Date 2020) Date 2019) Date 2018) Date 2017) Date 2016) Date 2015) Date 2014)
Total Pension Liability
Service cost 95,679$ 115,500$ 104,125$ 101,467$ 98,992$ 81,771$ 85,760$ 77,831$
Interest on pension liability (asset)164,943 191,808 180,927 164,469 154,035 171,936 157,795 139,957
Differences between expected and actual experience - - - (26,108) - (262,107) - -
Changes of assumptions - - - 130,083 - 83,549 - -
Change of benefit terms - 37,841 216,414 - - 212,877 - -
Gain or loss - (177,308) - - - - - -
Benefit payments (188,165) (508,600) (168,900) (49,576) (127,545) (138,785) (134,745) (13,923)
Net Change in Total Pension Liability 72,457 (340,759) 332,566 320,335 125,482 149,241 108,810 203,865
Total Pension Liability - January 1 2,866,971 3,207,730 2,875,164 2,554,829 2,429,347 2,280,106 2,171,296 1,967,431
Total Pension Liability - December 31 2,939,428$ 2,866,971$ 3,207,730$ 2,875,164$ 2,554,829$ 2,429,347$ 2,280,106$ 2,171,296$
Plan Fiduciary Net Position
Nonemployer contributions 171,228$ 164,840$ 152,191$ 148,988$ 143,749$ 137,010$ 136,009$ 126,474$
Projected investment return 415,426 243,846 578,856 (305,016) 460,846 186,692 (117,135) 77,066
Benefit payments (188,165) (508,600) (168,900) (49,576) (127,545) (138,785) (134,745) (13,923)
Administrative expense (24,939) (2,000) (8,780) (11,805) (12,186) (11,761) (11,783) (12,295)
Net Change in Plan Fiduciary Net Position 373,550 (101,914) 553,367 (217,409) 464,864 173,156 (127,654) 177,322
Plan Fiduciary Net Position - January 1 3,603,773 3,705,687 3,152,320 3,369,729 2,904,865 2,731,709 2,859,363 2,682,041
Plan Fiduciary Net Position - December 31 3,977,323$ 3,603,773$ 3,705,687$ 3,152,320$ 3,369,729$ 2,904,865$ 2,731,709$ 2,859,363$
Fire Relief's Net Pension Liability (Asset) - December 31 (1,037,895)$ (736,802)$ (497,957)$ (277,156)$ (814,900)$ (475,518)$ (451,603)$ (688,067)$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability (b/a)135.31%125.70%115.52%109.64%131.90%119.57%119.81%131.69%
Covered-employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A
Fire Relief's Net Pension Liability (Asset) as a Percentage
of Covered-employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Schedule of Employer’s Fire Relief Association’s Contributions
Actuarial Actual Contribution
Determined Contributions Deficiency
Year Contribution Paid (Excess)
Ending (a)(b)(a-b)
12/31/22 136,068$ 180,068$ (44,000)$
12/31/21 126,228 178,228 (52,000)
12/31/20 42,000 42,000 -
12/31/19 40,000 40,000 -
12/31/18 40,000 40,000 -
12/31/17 143,749 143,749 -
12/31/16 137,010 137,010 -
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
110
City of Hopkins, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2022
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios
2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 72,396$ 69,455$ 58,213$ 49,577$ 52,550$
Interest 21,602 30,328 35,759 33,554 36,421
Changes in benefit terms 66,761 - - - -
Differences between expected and actual experience 369,886 - 97,907 - -
Changes in assumptions 12,393 49,099 29,358 (25,854) -
Benefit payments (119,046) (115,693) (139,243) (144,260) (201,014)
Net Change in Total OPEB Liability 423,992 33,189 81,994 (86,983) (112,043)
Total OPEB Liability - Beginning 1,066,957 1,033,768 951,774 1,038,757 1,150,800
Total OPEB Liability - Ending 1,490,949$ 1,066,957$ 1,033,768$ 951,774$ 1,038,757$
Covered - employee payroll 9,206,077$ 9,094,678$ 8,808,405$ 8,223,045$ 7,983,539$
City's total OPEB liability as a percentage of
covered employee payroll 16.20 % 11.73 % 11.74 % 11.57 % 13.01 %
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
Note: The OPEB plan currently has no assets accumulated in a trust.
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112
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
113
City of Hopkins, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2022
Special Capital
Revenue Projects Total
Assets
Cash and temporary investments 2,426,112$ 3,982,513$ 6,408,625$
Receivables
Accounts 50,574 166,829 217,403
Taxes 965 455 1,420
Loans 12,013 - 12,013
Special assessments - 228,608 228,608
Due from other governments 36,861 416,513 453,374
Prepaid items 3,420 - 3,420
Total Assets 2,529,945$ 4,794,918$ 7,324,863$
Liabilities
Accounts and contracts payable 924,232$ 1,086,666$ 2,010,898$
Accrued salaries and benefits payable 42,772 - 42,772
Due to other governments 2,950 - 2,950
Unearned revenue 1,483,876 - 1,483,876
Advances from other funds 1,249,701 - 1,249,701
Total Liabilities 3,703,531 1,086,666 4,790,197
Deferred Inflows of Resources
Unavailable revenues - special assessments - 225,399 225,399
Unavailable revenues - intergovernmental - 416,513 416,513
Total Deferred Inflows of Resources - 641,912 641,912
Fund Balances
Nonspendable 3,420 - 3,420
Restricted 22,111 548,853 570,964
Committed 213,593 - 213,593
Assigned - 2,517,487 2,517,487
Unassigned (1,412,710) - (1,412,710)
Total Fund Balances (1,173,586) 3,066,340 1,892,754
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 2,529,945$ 4,794,918$ 7,324,863$
114
City of Hopkins, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2022
Special Capital
Revenue Projects Total
Revenues
Taxes
Property 339,318$ 159,999$ 499,317$
Tax increment 1,291,049 - 1,291,049
Franchise fees 200,222 656,584 856,806
Intergovernmental 462,019 675,567 1,137,586
Charges for services 959,796 6,125 965,921
Special assessments - 172,257 172,257
Investment earnings 1,151 15,925 17,076
Miscellaneous 61,827 348,000 409,827
Total Revenues 3,315,382 2,034,457 5,349,839
Expenditures
Current
General government 234,005 - 234,005
Public safety 54,350 - 54,350
Public works 163,943 - 163,943
Culture and recreation 1,224,454 - 1,224,454
Urban development and housing 42,841 - 42,841
Capital outlay
General government - 27,871 27,871
Public safety 77,504 - 77,504
Public works - 1,928,465 1,928,465
Culture and recreation 82,477 161,708 244,185
Urban development and housing 2,924,910 - 2,924,910
Debt service
Interest and other 3,327 - 3,327
Total Expenditures 4,807,811 2,118,044 6,925,855
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,492,429) (83,587) (1,576,016)
Other Financing Sources (Uses)
Transfers in 1,600,000 2,141,000 3,741,000
Transfers out (614,400) (550,794) (1,165,194)
Total Other Financing Sources (Uses)985,600 1,590,206 2,575,806
Net Change in Fund Balances (506,829) 1,506,619 999,790
Fund Balances, January 1 (666,757) 1,559,721 892,964
Fund Balances, December 31 (1,173,586)$ 3,066,340$ 1,892,754$
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116
NONMAJOR SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenue derived from specific taxes or other earmarked revenue sources.
They are usually required by Minnesota statute or local ordinances to finance particular functions or other activities of
government.
State Chemical Assessment – This fund is entirely supported by state aid for the purpose of chemical assessment
training and activity for the State of Minnesota.
Hennepin County CDBFG – This fund accounts for receipt for Community Development Block Grant Funds and the
issuance of loans and grants for housing rehabilitation.
Parking – This fund acquired land, improves and maintains parking lots and a parking ramp and collects monthly
maintenance fees from users.
Communications – This fund records the City’s share of a five-city joint venture cable TV franchise administered under
the Southwest Suburban Cable Commission.
Art Center – This fund accounts for the activities of the Hopkins Center for the Arts. Sources of funds are derived from
leases, ticket sales, admission fees, grants and donations.
Hopkins Race and Equity Initiative – This fund was established to account for the activity of collaborative effort of the
City and two outside organization centered on race equity.
Depot Coffee House – This fund accounts for the operations of the coffee hous e business and the teen center operations
that are supported through grant funds.
ARPA – This fund was established to record the receipt of American Rescue Plan Act Fund proceeds and the purchases
in accordance with the guidelines determined by the U.S. Department of Treasury.
Tax Increment Districts – These funds were established to record the use of tax increment receipts and bond proceeds
as applied in various Tax Increment Districts.
5th Avenue Flats – This fund was established to account for the project costs of the 5th Avenue Flats project. Originally
shown as a tax increment fund though the project changed scope and is no longer in a tax increment district.
117
203 207 214 217 250 216
State Hennepin Hopkins Race
Chemical County Art and Equity
Assessment CDBG Parking Communications Center Initiative
Assets
Cash and temporary investments -$ 32$ 26,990$ 174,382$ 55,634$ 10,072$
Receivables
Accounts - - 2,000 48,574 - -
Taxes - - - - 965 -
Loans - 12,013 - - - -
Due from other governments 35,922 - 939 - - -
Prepaid items - - 1,856 1,564 - -
Total Assets 35,922$ 12,045$ 31,785$ 224,520$ 56,599$ 10,072$
Liabilities
Accounts payable -$ -$ 526$ 2,690$ 28,036$ 6$
Salaries payable 423 - 5,303 6,673 22,818 -
Due to other governments - - 2,239 - 330 -
Due to other funds 51,262 - - - 345,337 -
Unearned revenue 35,922 - 30,123 - 17,282 -
Total Liabilities 87,607 - 38,191 9,363 413,803 6
Fund Balances
Nonspendable - - 1,856 1,564 - -
Restricted - 12,045 - - - 10,066
Committed - - - 213,593 - -
Unassigned (51,685) - (8,262) - (357,204) -
Total Fund Balances (51,685) 12,045 (6,406) 215,157 (357,204) 10,066
Total Liabilities and
Fund Balances 35,922$ 12,045$ 31,785$ 224,520$ 56,599$ 10,072$
City of Hopkins, Minnesota
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2022
118
219 210 211 229 232 234 233
Tax Increment Tax Increment Tax Increment
Depot District District Tax Increment District
Coffee Entertainment Oaks of 5th Avenue District Marketplace
House ARPA District Mainstreet Flats Moline and Main Total
-$ 1,403,986$ 19,523$ -$ -$ 577,717$ 157,776$ 2,426,112$
- - - - - - - 50,574
- - - - - - - 965
- - - - - - - 12,013
- - - - - - - 36,861
- - - - - - - 3,420
-$ 1,403,986$ 19,523$ -$ -$ 577,717$ 157,776$ 2,529,945$
2,536$ 3,437$ 13$ -$ -$ 761,765$ 125,223$ 924,232$
7,555 - - - - - - 42,772
381 - - - - - - 2,950
204,125 - 39,598 - 399,379 - 210,000 1,249,701
- 1,400,549 - - - - - 1,483,876
214,597 1,403,986 39,611 - 399,379 761,765 335,223 3,703,531
- - - - - - - 3,420
- - - - - - - 22,111
- - - - - - - 213,593
(214,597) - (20,088) - (399,379) (184,048) (177,447) (1,412,710)
(214,597) - (20,088) - (399,379) (184,048) (177,447) (1,173,586)
-$ 1,403,986$ 19,523$ -$ -$ 577,717$ 157,776$ 2,529,945$
119
203 207 214 217 250 216
State Hennepin Hopkins Race
Chemical County Art and Equity
Assessment CDBG Parking Communications Center Initiative
Revenues
Property taxes -$ -$ -$ -$ 339,318$ -$
Tax increments - - - - - -
Franchise fees - - - 200,222 - -
Intergovernmental 28,720 - 65,000 - 253,295 -
Charges for services - - 89,365 - 714,092 -
Investment earnings (loss)- - - (189) - (7)
Miscellaneous - - 11,872 - 15,717 6,000
Total Revenues 28,720 - 166,237 200,033 1,322,422 5,993
Expenditures
Current
General government - - - 216,005 - -
Public safety 54,350 - - - - -
Public works - - 163,943 - - -
Culture and recreation - - - - 919,938 756
Urban development and housing - 3,697 - - - -
Capital outlay
Public safety - - - - - -
Culture and recreation - - - - 82,477 -
Urban development and housing - - - - - -
Debt service
Interest and other - - - - - -
Total Expenditures 54,350 3,697 163,943 216,005 1,002,415 756
Excess (Deficiency) of Revenues
Over (Under) Expenditures (25,630) (3,697) 2,294 (15,972) 320,007 5,237
Other Financing Sources (Uses)
Transfers in - - - - 80,000 -
Transfers out - - - (50,000) - -
TotalOther Financing Sources (Uses)- - - (50,000) 80,000 -
Net Change in Fund Balances (25,630) (3,697) 2,294 (65,972) 400,007 5,237
Fund Balances, January 1 (26,055) 15,742 (8,700) 281,129 (757,211) 4,829
Fund Balances, December 31 (51,685)$ 12,045$ (6,406)$ 215,157$ (357,204)$ 10,066$
City of Hopkins, Minnesota
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2022
120
219 210 211 229 232 234 233
Tax Increment Tax Increment Tax Increment
Depot District District Tax Increment District
Coffee Entertainment Oaks of 5th Avenue District Marketplace
House ARPA District Mainstreet Flats Moline and Main Total
-$ -$ -$ -$ -$ -$ -$ 339,318$
- - 61,351 - - 1,026,145 203,553 1,291,049
- - - - - - - 200,222
19,500 95,504 - - - - - 462,019
156,339 - - - - - - 959,796
- - (156) 1,590 - - (87) 1,151
28,238 - - - - - - 61,827
204,077 95,504 61,195 1,590 - 1,026,145 203,466 3,315,382
- 18,000 - - - - - 234,005
- - - - - - - 54,350
- - - - - - - 163,943
303,760 - - - - - - 1,224,454
- - 2,013 6,591 - 26,516 4,024 42,841
- 77,504 - - - - - 77,504
- - - - - - - 82,477
- - - - - 2,723,531 201,379 2,924,910
- - 3,327 - - - - 3,327
303,760 95,504 5,340 6,591 - 2,750,047 205,403 4,807,811
(99,683) - 55,855 (5,001) - (1,723,902) (1,937) (1,492,429)
20,000 - - - - 1,500,000 - 1,600,000
- - (302,400) (9,500) - (252,500) - (614,400)
20,000 - (302,400) (9,500) - 1,247,500 - 985,600
(79,683) - (246,545) (14,501) - (476,402) (1,937) (506,829)
(134,914) - 226,457 14,501 (399,379) 292,354 (175,510) (666,757)
(214,597)$ -$ (20,088)$ -$ (399,379)$ (184,048)$ (177,447)$ (1,173,586)$
121
City of Hopkins, Minnesota
State Chemical Assessment Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Intergovernmental -$ -$ 28,720$ 28,720$ 74,236$
Miscellaneous 65,000 65,000 - (65,000) -
Total Revenues 65,000 65,000 28,720 (36,280) 74,236
Expenditures
Current
Public safety 65,000 65,000 54,350 10,650 73,135
Net Change in Fund Balances - - (25,630) (25,630) 1,101
Fund Balances, January 1 (26,055) (26,055) (26,055) - (27,156)
Fund Balances, December 31 (26,055)$ (26,055)$ (51,685)$ (25,630)$ (26,055)$
2022
Budget Amounts
122
City of Hopkins, Minnesota
Parking Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Intergovernmental -$ -$ 65,000$ 65,000$ -$
Charges for services 110,000 110,000 89,365 (20,635) 80,634
Investment earnings 500 500 - (500) -
Miscellaneous 20,000 20,000 11,872 (8,128) 12,507
Total Revenues 130,500 130,500 166,237 35,737 93,141
Expenditures
Current
Public works 162,030 162,030 163,943 (1,913) 161,944
Net Change in Fund Balances (31,530) (31,530) 2,294 33,824 (68,803)
Fund Balances, January 1 (8,700) (8,700) (8,700) - 60,103
Fund Balances, December 31 (40,230)$ (40,230)$ (6,406)$ 33,824$ (8,700)$
2022
Budget Amounts
123
City of Hopkins, Minnesota
Communications Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Franchise fees 240,000$ 240,000$ 200,222$ (39,778)$ 216,584$
Charges for services - - - - 79
Investment earnings (loss)3,000 3,000 (189) (3,189) 46
Total Revenues 243,000 243,000 200,033 (42,967) 216,709
Expenditures
Current
General government 218,445 218,445 216,005 2,440 216,200
Capital outlay
General government 3,500 3,500 - 3,500 -
Total Expenditures 221,945 221,945 216,005 5,940 216,200
Excess (Deficiency) of Revenues
Over (Under) Expenditures 21,055 21,055 (15,972) (37,027) 509
Other Financing Sources (Uses)
Transfers out (50,000) (50,000) (50,000) - (50,000)
Net Change in Fund Balances (28,945) (28,945) (65,972) (37,027) (49,491)
Fund Balances, January 1 281,129 281,129 281,129 - 330,620
Fund Balances, December 31 252,184$ 252,184$ 215,157$ (37,027)$ 281,129$
2022
Budget Amounts
124
City of Hopkins, Minnesota
Art Center Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Property tax 339,317$ 339,317$ 339,318$ 1$ 331,694$
Intergovernmental 32,000 32,000 253,295 221,295 46,808
Charges for services 628,732 628,732 714,092 85,360 476,031
Investment earnings 9 9 - (9) 15
Miscellaneous 7,400 7,400 15,717 8,317 8,076
Total Revenues 1,007,458 1,007,458 1,322,422 314,964 862,624
Expenditures
Current
Culture and recreation 924,830 924,830 919,938 4,892 679,815
Capital outlay
Culture and recreation 102,628 102,628 82,477 20,151 -
Total Expenditures 1,027,458 1,027,458 1,002,415 25,043 679,815
Excess (Deficiency) of Revenues
Over (Under) Expenditures (20,000) (20,000) 320,007 340,007 182,809
Other Financing Sources (Uses)
Transfers in 80,000 80,000 80,000 - 80,000
Net Change in Fund Balances 60,000 60,000 400,007 340,007 262,809
Fund Balances, January 1 (757,211) (757,211) (757,211) - (1,020,020)
Fund Balances, December 31 (697,211)$ (697,211)$ (357,204)$ 340,007$ (757,211)$
2022
Budget Amounts
125
City of Hopkins, Minnesota
Hopkins Race and Equity Initiative Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Investment earnings (loss)-$ -$ (7)$ (7)$ 6$
Miscellaneous 6,000 6,000 6,000 - 4,000
Total Revenues 6,000 6,000 5,993 (7) 4,006
Expenditures
Current
Culture and recreation 6,000 6,000 756 5,244 1,633
Net Change in Fund Balances - - 5,237 5,237 2,373
Fund Balances, January 1 4,829 4,829 4,829 - 2,456
Fund Balances, December 31 4,829$ 4,829$ 10,066$ 5,237$ 4,829$
2022
Budget Amounts
126
City of Hopkins, Minnesota
Depot Coffee House Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Intergovernmental 19,500$ 19,500$ 19,500$ -$ 19,500$
Charges for services 189,669 189,669 156,339 (33,330) 121,465
Miscellaneous 25,000 25,000 28,238 3,238 22,524
Total Revenues 234,169 234,169 204,077 (30,092) 163,489
Expenditures
Current
Culture and recreation 254,169 254,169 303,760 (49,591) 227,723
Excess (Deficiency) of Revenues
Over (Under) Expenditures (20,000) (20,000) (99,683) (79,683) (64,234)
Other Financing Sources (Uses)
Transfers in 20,000 20,000 20,000 - 20,000
Net Change in Fund Balances - - (79,683) (79,683) (44,234)
Fund Balances, January 1 (134,914) (134,914) (134,914) - (90,680)
Fund Balances, December 31 (134,914)$ (134,914)$ (214,597)$ (79,683)$ (134,914)$
2022
Budget Amounts
127
City of Hopkins, Minnesota
Tax Increment District Entertainment District Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax increments 30,000$ 30,000$ 61,351$ 31,351$ 61,436$
Investment earnings (loss)- - (156) (156) 83
Total Revenues 30,000 30,000 61,195 31,195 61,519
Expenditures
Current
Urban development and housing 3,000 3,000 2,013 987 513
Debt service
Interest and other 6,046 6,046 3,327 2,719 5,046
Total Expenditures 9,046 9,046 5,340 3,706 5,559
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,954 20,954 55,855 34,901 55,960
Other Financing Sources (Uses)
Transfers out - - (302,400) (302,400) -
Net Change in Fund Balances 20,954 20,954 (246,545) (267,499) 55,960
Fund Balances, January 1 226,457 226,457 226,457 - 170,497
Fund Balances, December 31 247,411$ 247,411$ (20,088)$ (267,499)$ 226,457$
2022
Budget Amounts
128
City of Hopkins, Minnesota
Tax Increment District of Oaks of Mainstreet Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Investment earnings 250$ 250$ 1,590$ 1,340$ -$
Expenditures
Current
Urban development and housing 8,591 8,591 6,591 2,000 9,142
Excess (Deficiency) of Revenues
Over (Under) Expenditures (8,341) (8,341) (5,001) 3,340 (9,142)
Other Financing Sources (Uses)
Transfers out - - (9,500) (9,500) -
Net Change in Fund Balances (8,341) (8,341) (14,501) (6,160) (9,142)
Fund Balances, January 1 14,501 14,501 14,501 - 23,643
Fund Balances, December 31 6,160$ 6,160$ -$ (6,160)$ 14,501$
2022
Budget Amounts
129
City of Hopkins, Minnesota
Tax Increment District Moline Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax increments 1,015,000$ 1,015,000$ 1,026,145$ 11,145$ 1,010,181$
Expenditures
Current
Urban development and housing 20,101 20,101 26,516 (6,415) 12,171
Capital
Urban development and housing 924,000 924,000 2,723,531 (1,799,531) 909,163
Total Expenditures 944,101 944,101 2,750,047 (1,805,946) 921,334
Excess (Deficiency) of Revenues
Over (Under) Expenditures 70,899 70,899 (1,723,902) (1,794,801) 88,847
Other Financing Sources (Uses)
Transfers in - - 1,500,000 1,500,000 -
Transfers out - - (252,500) (252,500) -
Total Other Financing
Sources (Uses)- - 1,247,500 1,247,500 -
Net Change in Fund Balances 70,899 70,899 (476,402) (547,301) 88,847
Fund Balances, January 1 292,354 292,354 292,354 - 203,507
Fund Balances, December 31 363,253$ 363,253$ (184,048)$ (547,301)$ 292,354$
2022
Budget Amounts
130
City of Hopkins, Minnesota
Tax Increment District Marketplace and Main Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax increments 205,000$ 205,000$ 203,553$ (1,447)$ 224,903$
Investment earnings (loss)1,300 1,300 (87) (1,387) 39
Total Revenues 206,300 206,300 203,466 (2,834) 224,942
Expenditures
Current
Urban development and housing 6,410 6,410 4,024 2,386 2,491
Capital outlay
Urban development and housing 195,000 195,000 201,379 (6,379) 211,622
Total Expenditures 201,410 201,410 205,403 (3,993) 214,113
Net Change in Fund Balances 4,890 4,890 (1,937) (6,827) 10,829
Fund Balances, January 1 (175,510) (175,510) (175,510) - (186,339)
Fund Balances, December 31 (170,620)$ (170,620)$ (177,447)$ (6,827)$ (175,510)$
2022
Budget Amounts
131
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132
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are established to account for the resources expended to acquire assets of a relatively permanent
nature. (Special revenue and enterprise fund resources are not included in this category.) These funds evolve from the
needs for special accounting for bond proceeds, grants and contribution for the acquisition of capital assets.
Park Improvements - This fund was established to record construction and improvement costs for park facilities.
MSA Construction - accounts for the accumulation of resources for future street improvement capital outlay.
Capital Improvement - accounts for the accumulation of resources for future building improvement capital outlay.
Permanent Improvement Revolving - accounts for the accumulation of resources for future building improvement capital
outlay.
133
301 302 305
MSA
Park Construction Capital
Improvements Fund Improvement
Assets
Cash and temporary investments 838,901$ 1,059,110$ 12,904$
Receivable
Accounts 73,755 - 88,458
Taxes - - 142
Special assessments - - -
Due from other governments - - -
Total Assets 912,656$ 1,059,110$ 101,504$
Liabilities
Accounts payable -$ 1,343$ -$
Deferred Inflows of Resources
Unavailable revenues - special assessments - - -
Unavailable revenues - intergovernmental - - -
Total Deferred Inflows of Resources - - -
Fund Balances
Restricted 548,853 - -
Assigned 363,803 1,057,767 101,504
Total Fund Balances 912,656 1,057,767 101,504
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 912,656$ 1,059,110$ 101,504$
City of Hopkins, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2022
134
501
Permanent
Improvement
Revolving Total
2,071,598$ 3,982,513$
4,616 166,829
313 455
228,608 228,608
416,513 416,513
2,721,648$ 4,794,918$
1,085,323$ 1,086,666$
225,399 225,399
416,513 416,513
641,912 641,912
- 548,853
994,413 2,517,487
994,413 3,066,340
2,721,648$ 4,794,918$
135
301 302 305
MSA
Park Construction Capital
Improvements Fund Improvement
Revenues
Property taxes -$ -$ 50,000$
Franchise fees 298,122 - 358,462
Intergovernmental - 55,094 -
Charges for services - --
Special assessments - --
Investment earnings (loss)- (1,370) -
Miscellaneous 348,000 - -
Total Revenues 646,122 53,724 408,462
Expenditures
Capital outlay
General government - - 27,871
Public works - 5,386 6,359
Culture and recreation 96,575 - 65,133
Total Expenditures 96,575 5,386 99,363
Excess (Deficiency) of Revenues
Over (Under) Expenditures 549,547 48,338 309,099
Other Financing Sources (Uses)
Transfers in - - -
Transfers out (110,000) - (360,000)
Total Other Financing Sources (110,000) - (360,000)
Net Change in Fund Balances 439,547 48,338 (50,901)
Fund Balances, January 1 473,109 1,009,429 152,405
Fund Balances, December 31 912,656$ 1,057,767$ 101,504$
City of Hopkins, Minnesota
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2022
136
501
Permanent
Improvement
Revolving Total
109,999$ 159,999$
- 656,584
620,473 675,567
6,125 6,125
172,257 172,257
17,295 15,925
- 348,000
926,149 2,034,457
- 27,871
1,916,720 1,928,465
- 161,708
1,916,720 2,118,044
(990,571) (83,587)
2,141,000 2,141,000
(80,794) (550,794)
2,060,206 1,590,206
1,069,635 1,506,619
(75,222) 1,559,721
994,413$ 3,066,340$
137
City of Hopkins, Minnesota
Debt Service Funds
Combining Balance Sheet (Continued on the Following Pages)
December 31, 2022
433 435 436 439 424 443 444 445 446 447 448 449
2005B G.O.2009B G.O.2009B G.O.2010B 2012 G.O.2014A G.O.2014B G.O.2015A G.O.2015B G.O.2015C G.O.2015D G.O.2016A G.O.
TIF Refunding Taxable Housing Taxable Housing G.O. Refunding Improvement Improvement Refunding SROP Tax Abatement Tax Increment Tax Increment Improvement
Bonds Bonds (1999A)Bonds (1999B)Bonds Bonds Bonds Bonds Bonds Bonds Refunding Bonds Refunding Bonds Bonds
Assets
Cash and temporary investments -$ 23,258$ -$ 188,109$ 172,633$ 174,932$ 606,764$ 320,877$ 72,660$ 333,500$ 514,597$ 609,500$
Receivables
Taxes - - - - - 285 1,982 734 367 - - 294
Special assessments - - - - - 33,553 - 19,334 - - - 336,470
Total Assets -$ 23,258$ -$ 188,109$ 172,633$ 208,770$ 608,746$ 340,945$ 73,027$ 333,500$ 514,597$ 946,264$
Liabilities
Accounts payable -$ 19$ -$ 131$ 137$ 131$ 456$ 247$ 54$ 232$ 357$ 463$
Deferred Inflows of Resources
Unavailable revenues - special assessments - - - - - 33,535 - 19,323 - - - 335,949
Fund Balances
Restricted for debt service - 23,239 - 187,978 172,496 175,104 608,290 321,375 72,973 333,268 514,240 609,852
Total Liabilities, Deferred Inflows of
Resources and Fund Balances -$ 23,258$ -$ 188,109$ 172,633$ 208,770$ 608,746$ 340,945$ 73,027$ 333,500$ 514,597$ 946,264$
138
450 451 452 453 454 456 457 458 459 460 461 462 463 464
2016B G.O.2016D G.O.2017A G.O.2017B G.O.2018A G.O.2019A G.O.2019B G.O.2020A G.O.2020A G.O.2020B G.O.2021A G.O.2022A G.O.2022A G.O.
Tax Abatement 2016C G.O.Tax Increment SROP Tax Abatement Improvement Improvement Refunding Improvement Equipment Refunding Improvement Improvement Equipment
Bonds Bonds Refunding Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Certificate Total
141,314$ 268,989$ 317,692$ 833,762$ 301,727$ 812,109$ 401,829$ 9,113$ 652,839$ 134,417$ 467,133$ 58,257$ 46,546$ 26,622$ 7,489,179$
112 705 - 2,686 399 1,490 1,004 279 - 440 976 - - - 11,753
- - - 379,189 - 405,855 615,465 115,369 1,513,867 - 287,335 - 200,902 - 3,907,339
141,426$ 269,694$ 317,692$ 1,215,637$ 302,126$ 1,219,454$ 1,018,298$ 124,761$ 2,166,706$ 134,857$ 755,444$ 58,257$ 247,448$ 26,622$ 11,408,271$
112$ 206$ 220$ 421$ 207$ 608$ 577$ 1$ 7,274$ 97$ 346$ 5,416$ 2,713$ -$ 20,425$
- - - 378,422 - 405,515 615,465 115,366 1,513,679 - 286,998 - 200,902 - 3,905,154
141,314 269,488 317,472 836,794 301,919 813,331 402,256 9,394 645,753 134,760 468,100 52,841 43,833 26,622 7,482,692
141,426$ 269,694$ 317,692$ 1,215,637$ 302,126$ 1,219,454$ 1,018,298$ 124,761$ 2,166,706$ 134,857$ 755,444$ 58,257$ 247,448$ 26,622$ 11,408,271$
139
City of Hopkins, Minnesota
Debt Service Funds
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances (Continued on the following Pages)
For the Year Ended December 31, 2022
433 435 436 439 424 443 444 445 446 447 448 449
2005B G.O.2009B G.O.2009B G.O.2010B 2012 G.O.2014A G.O.2014B G.O.2015A G.O.2015B G.O.2015C G.O.2015D G.O.2016A G.O.
TIF Refunding Taxable Housing Taxable Housing G.O. Refunding Improvement Improvement Refunding SROP Tax Abatement Tax Increment Tax Increment Improvement
Bonds Bonds (1999A)Bonds (1999B)Bonds Bonds Bonds Bonds Bonds Bonds Refunding Bonds Refunding Bonds Bonds
Revenues
Property taxes -$ -$ -$ -$ -$ 97,001$ 675,000$ 249,999$ 125,000$ -$ -$ 100,001$
Special assessments - 1,822 - - - 13,701 - 9,569 - - - 75,615
Investment earnings (loss)6 (20) 37 (200) (142) (97) (274) (175) (20) (324) (184) (398)
Total Revenues 6 1,802 37 (200) (142) 110,605 674,726 259,393 124,980 (324) (184) 175,218
Expenditures
Debt service
Principal - - - 175,000 185,000 120,000 755,000 260,000 130,000 285,000 430,000 270,000
Interest and other charges - 19 - 8,537 10,820 38,528 23,997 67,475 62,580 74,635 128,498 67,991
Total Expenditures - 19 - 183,537 195,820 158,528 778,997 327,475 192,580 359,635 558,498 337,991
Excess (Deficiency) of Revenues
Over (Under) Expenditures 6 1,783 37 (183,737) (195,962) (47,923) (104,271) (68,082) (67,600) (359,959) (558,682) (162,773)
Other Financing Sources
Transfers in - - - 81,349 - 49,934 145,000 68,412 63,750 213,830 945,941 154,666
Premium on bonds issued - - - - - - - - - - - -
Bonds issued - - - - - - - - - - - -
Transfers out - - - - - - - - - - - -
Total Other Financing Sources (Uses)- - - 81,349 - 49,934 145,000 68,412 63,750 213,830 945,941 154,666
Net Change in Fund Balances 6 1,783 37 (102,388) (195,962) 2,011 40,729 330 (3,850) (146,129) 387,259 (8,107)
Fund Balances, January 1 (6) 21,456 (37) 290,366 368,458 173,093 567,561 321,045 76,823 479,397 126,981 617,959
Fund Balances, December 31 -$ 23,239$ -$ 187,978$ 172,496$ 175,104$ 608,290$ 321,375$ 72,973$ 333,268$ 514,240$ 609,852$
140
450 451 452 453 454 456 457 458 459 460 461 462 463 464
2016B G.O.2016D G.O.2017A G.O.2017B G.O.2018A G.O.2019A G.O.2019B G.O.2020A G.O.2020A G.O.2020B G.O.2021A G.O.2022A G.O.2022A G.O.
Tax Abatement 2016C G.O.Tax Increment SROP Tax Abatement Improvement Improvement Refunding Improvement Equipment Refunding Improvement Improvement Equipment
Bonds Bonds Refunding Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Certificate Total
38,041$ 240,000$ -$ 915,001$ 135,856$ 507,582$ 342,097$ 95,001$ -$ 150,001$ 332,468$ -$ -$ -$ 4,003,048$
- - - 80,462 - 85,114 82,521 46,380 268,316 - 98,144 - - - 761,644
(78) (154) (83) (213) (181) (493) (12,013) 745 43,434 (66) (259) 45,213 (5,129) - 68,932
37,963 239,846 (83) 995,250 135,675 592,203 412,605 142,126 311,750 149,935 430,353 45,213 (5,129) - 4,833,624
100,000 210,000 275,000 675,000 95,000 410,000 595,000 185,000 - - 375,000 - - - 5,530,000
25,130 20,497 60,723 357,849 55,698 183,011 424,471 38,267 101,127 9,995 65,119 101,262 53,075 19,322 1,998,626
125,130 230,497 335,723 1,032,849 150,698 593,011 1,019,471 223,267 101,127 9,995 440,119 101,262 53,075 19,322 7,528,626
(87,167) 9,349 (335,806) (37,599) (15,023) (808) (606,866) (81,141) 210,623 139,940 (9,766) (56,049) (58,204) (19,322) (2,695,002)
100,000 - 668,235 - - - 360,000 80,794 - - - - - - 2,931,911
- - - - - - - - - - - - 158,037 80,944 238,981
- - - - - - - - - - - - 2,085,000 900,000 2,985,000
- - - - - - - - - - - - (2,141,000) (935,000) (3,076,000)
100,000 - 668,235 - - - 360,000 80,794 - - - - 102,037 45,944 3,079,892
12,833 9,349 332,429 (37,599) (15,023) (808) (246,866) (347) 210,623 139,940 (9,766) (56,049) 43,833 26,622 384,890
128,481 260,139 (14,957) 874,393 316,942 814,139 649,122 9,741 435,130 (5,180) 477,866 108,890 - - 7,097,802
141,314$ 269,488$ 317,472$ 836,794$ 301,919$ 813,331$ 402,256$ 9,394$ 645,753$ 134,760$ 468,100$ 52,841$ 43,833$ 26,622$ 7,482,692$
141
City of Hopkins, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued on the Following Pages)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes
Property taxes 13,305,239$ 13,305,239$ 12,663,858$ (641,381)$ 12,792,890$
Franchise taxes 296,200 296,200 303,957 7,757 306,032
Total taxes 13,601,439 13,601,439 12,967,815 (633,624) 13,098,922
Licenses and permits
Licenses 124,015 124,015 128,161 4,146 81,380
Permits 402,000 402,000 1,382,580 980,580 680,070
Total licenses and permits 526,015 526,015 1,510,741 984,726 761,450
Intergovernmental
Federal
Other - - 62,000 62,000 5,909
State
Local government aid 880,066 880,066 880,066 - 853,671
Police and fire aid 422,000 422,000 477,506 55,506 496,272
Municipal state aid 170,000 170,000 206,824 36,824 185,220
Other 30,000 30,000 31,346 1,346 18,153
County - - 44,660 44,660 -
Total intergovernmental 1,502,066 1,502,066 1,702,402 200,336 1,559,225
Charges for services
General government 17,900 17,900 291,623 273,723 260,456
Public safety 193,500 193,500 195,450 1,950 155,775
Highways and streets 18,350 18,350 11,392 (6,958) 8,619
Culture and recreation 96,500 96,500 116,710 20,210 78,332
Total charges for services 326,250 326,250 615,175 288,925 503,182
Fines and forfeitures 191,300 191,300 110,300 (81,000) 117,492
Investment earnings 15,000 15,000 106,508 91,508 -
Miscellaneous
Contributions and donations 1,000 1,000 8,013 7,013 5,978
Other 10,550 10,550 60,326 49,776 25,177
Total miscellaneous 11,550 11,550 68,339 56,789 31,155
Total Revenues 16,173,620 16,173,620 17,081,280 907,660 16,071,426
Budgeted Amounts
2022
142
City of Hopkins, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures
Current
General government
Mayor and city council
Personal services 45,830$ 45,830$ 43,619$ 2,211$ 42,863$
Supplies 3,025 3,025 6,268 (3,243) 2,260
Other services and charges 55,844 55,844 51,509 4,335 30,659
Total mayor and city council 104,699 104,699 101,396 3,303 75,782
Management and administration
Personal services 378,324 378,324 413,459 (35,135) 384,691
Supplies 9,350 9,350 18,890 (9,540) 14,531
Other services and charges 81,371 81,371 89,843 (8,472) 42,426
Total management and administration 469,045 469,045 522,192 (53,147) 441,648
Finance
Personal services 299,415 299,415 298,879 536 242,763
Supplies 9,250 9,250 9,557 (307) 10,772
Other services and charges 154,000 154,000 199,036 (45,036) 165,663
Total finance 462,665 462,665 507,472 (44,807) 419,198
City clerk
Personal services 85,229 85,229 77,561 7,668 59,394
Supplies - - 893 (893) 902
Other services and charges 20,215 20,215 18,386 1,829 16,255
Total city clerk 105,444 105,444 96,840 8,604 76,551
Municipal building
Personal services 122,151 122,151 94,932 27,219 101,742
Supplies 17,275 17,275 9,420 7,855 11,910
Other services and charges 241,475 241,475 290,797 (49,322) 280,226
Total municipal building 380,901 380,901 395,149 (14,248) 393,878
Planning and zoning
Personal services 160,098 160,098 177,780 (17,682) 147,889
Supplies 2,500 2,500 1,948 552 1,282
Other services and charges 42,186 42,186 40,846 1,340 40,919
Total planning and zoning 204,784 204,784 220,574 (15,790) 190,090
Elections
Personal services 99,957 99,957 73,280 26,677 56,008
Supplies 12,500 12,500 6,642 5,858 8,061
Other services and charges 1,902 1,902 17,898 (15,996) 523
Total elections 114,359 114,359 97,820 16,539 64,592
Assessing
Personal services 57,119 57,119 13,014 44,105 64,337
Supplies 700 700 761 (61) 270
Other services and charges 186,339 186,339 175,953 10,386 175,579
Total assessing 244,158 244,158 189,728 54,430 240,186
Legal 225,000 225,000 320,759 (95,759) 282,546
General governmental buildings
Personal services - - 549 (549) 3,888
Other services and charges 69,200 69,200 10,680 58,520 8,952
Total general governmental buildings 69,200 69,200 11,229 57,971 12,840
Budgeted Amounts
2022
143
City of Hopkins, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2022
Expenditures (Continued)
Current expenditures (continued)
Information services
Personal services 287,217$ 287,217$ 299,300$ (12,083)$ 288,664$
Supplies 13,300 13,300 11,645 1,655 13,770
Other services and charges 36,888 36,888 23,811 13,077 28,747
Total information services 337,405 337,405 334,756 2,649 331,181
Total general government 2,717,660 2,717,660 2,797,915 (80,255) 2,528,492
Public safety
Police administration
Personal services 969,624 969,624 988,814 (19,190) 890,496
Supplies 24,069 24,069 19,528 4,541 16,821
Other services and charges 184,776 184,776 220,922 (36,146) 182,727
Total police administration 1,178,469 1,178,469 1,229,264 (50,795) 1,090,044
Police services
Personal services 4,422,377 4,422,377 4,291,322 131,055 4,146,292
Supplies 128,887 128,887 196,137 (67,250) 151,247
Other services and charges 395,635 395,635 398,099 (2,464) 402,358
Total police services 4,946,899 4,946,899 4,885,558 61,341 4,699,897
Police building
Personal services 138,599 138,599 129,237 9,362 117,609
Supplies 5,699 5,699 10,181 (4,482) 2,397
Other services and charges 44,662 44,662 43,693 969 37,704
Total police building 188,960 188,960 183,111 5,849 157,710
System management
Supplies 5,070 5,070 5,749 (679) 4,608
Other services and charges 98,145 98,145 98,153 (8) 95,484
Total system management 103,215 103,215 103,902 (687) 100,092
Fire
Personal services 846,035 846,035 914,042 (68,007) 849,109
Supplies 104,160 104,160 117,960 (13,800) 120,990
Other services and charges 649,929 649,929 732,497 (82,568) 717,731
Total fire 1,600,124 1,600,124 1,764,499 (164,375) 1,687,830
Building Inspection
Personal services 744,759 744,759 690,456 54,303 520,635
Supplies 12,285 12,285 3,593 8,692 4,144
Other services and charges 142,615 142,615 134,106 8,509 102,588
Total building inspection 899,659 899,659 828,155 71,504 627,367
Total public safety 8,917,326 8,917,326 8,994,489 (77,163) 8,362,940
144
City of Hopkins, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2022
Expenditures (Continued)
Current expenditures (continued)
Public works
Streets and highways
Personal services 662,096$ 662,096$ 673,745$ (11,649)$ 617,053$
Supplies 210,025 210,025 297,386 (87,361) 170,199
Other services and charges 574,182 574,182 589,593 (15,411) 492,604
Total streets and highways 1,446,303 1,446,303 1,560,724 (114,421) 1,279,856
Engineering
Personal services 42,593 42,593 49,514 (6,921) (16,157)
Supplies 4,700 4,700 2,491 2,209 1,029
Other services and charges 45,138 45,138 38,300 6,838 36,493
Total engineering 92,431 92,431 90,305 2,126 21,365
Snow and ice removal
Personal services 170,711 170,711 173,466 (2,755) 155,272
Supplies 62,400 62,400 80,196 (17,796) 60,293
Other services and charges 18,558 18,558 15,566 2,992 14,866
Total snow and ice removal 251,669 251,669 269,228 (17,559) 230,431
Public works administration
Personal services 157,378 157,378 147,133 10,245 141,548
Supplies 3,500 3,500 5,219 (1,719) 4,924
Other services and charges 19,994 19,994 31,863 (11,869) 19,041
Total public works administration 180,872 180,872 184,215 (3,343) 165,513
Total public works 1,971,275 1,971,275 2,104,472 (133,197) 1,697,165
Parks and recreation
Parks
Personal services 599,124 599,124 553,365 45,759 589,045
Supplies 124,200 124,200 156,117 (31,917) 114,396
Other services and charges 342,989 342,989 367,613 (24,624) 305,296
Total parks 1,066,313 1,066,313 1,077,095 (10,782) 1,008,737
Forestry
Personal services 181,626 181,626 264,891 (83,265) 179,170
Supplies 27,350 27,350 20,849 6,501 23,911
Other services and charges 118,995 118,995 185,029 (66,034) 100,184
Total forestry 327,971 327,971 470,769 (142,798) 303,265
Recreation facilities
Personal services 318,997 318,997 344,967 4,670 225,299
Supplies 21,963 21,963 17,293 4,670 16,671
Other services and charges 418,903 418,903 354,486 64,417 407,444
Total recreation facilities 759,863 759,863 716,746 73,757 649,414
Total culture and recreation 2,154,147 2,154,147 2,264,610 (79,823) 1,961,416
145
City of Hopkins, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
2021
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Budgeted Amounts
2022
Expenditures (Continued)
Current expenditures (continued)
Community development
Community development
Personal services 111,232$ 111,232$ 110,688$ 544$ 103,119$
Supplies 800 800 1,008 (208) 537
Other services and charges 6,680 6,680 4,481 2,199 3,147
Total community development 118,712 118,712 116,177 2,535 106,803
Total current 15,879,120 15,879,120 16,277,663 (367,903) 14,656,816
Capital outlay
General government 106,500 106,500 118,452 (11,952) 93,142
Public safety 22,000 22,000 8,058 13,942 6,375
Public works 144,000 144,000 156,486 (12,486) 117,208
Parks and recreation 2,000 2,000 1,380 620 21,527
Total capital outlay 274,500 274,500 284,376 (9,876) 238,252
Total Expenditures 16,153,620 16,153,620 16,562,039 (377,779) 14,895,068
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,000 20,000 519,241 499,241 1,176,358
Other Financing Sources (Uses)
Transfers out (20,000) (20,000) (20,000) - (20,000)
Net Change in Fund Balances - - 499,241 499,241 1,156,358
Fund Balances, January 1 8,513,860 8,513,860 8,513,860 - 7,357,502
Fund Balances, December 31 8,513,860$ 8,513,860$ 9,013,101$ 499,241$ 8,513,860$
146
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds are established to account for the financing of self-supporting activities of governmental units, which
render services to the general public on a user charge basis. Records are maintained on the accrual basis of accounting.
Refuse Utility Fund – This fund accounts for the operations of the City owned refuse service.
Housing Authority Fund – This fund accounts for the operations of the City owned federally subsidized apartment
building.
147
City of Hopkins, Minnesota
Statement of Net Position
Nonmajor Enterprise Funds
December 31, 2022
717 750
Housing
Refuse Authority Totals
Assets
Current Assets
Cash and temporary investments 1,273,734$ 387,362$ 1,661,096$
Accounts receivable 50,819 (7,447) 43,372
Due from other governments - 295,605 295,605
Prepaid items - 13,148 13,148
Total Current Assets 1,324,553 688,668 2,013,221
Noncurrent Assets
Capital assets
Land - 208,252 208,252
Buildings 309,227 5,804,172 6,113,399
Machinery and equipment 1,061,439 33,430 1,094,869
Less accumulated depreciation (814,277) (4,576,824) (5,391,101)
Total Noncurrent Assets 556,389 1,469,030 2,025,419
Total Assets 1,880,942 2,157,698 4,038,640
Deferred Outflows of Resources
Deferred pension resources 48,291 - 48,291
Deferred other postemployment benefits 20,265 12,162 32,427
Total Deferred Outflows of Resources 68,556 12,162 80,718
Liabilities
Current Liabilities
Accounts payable 69,948$ 74,633$ 144,581$
Accrued salaries payable 17,303 53,499 70,802
Due to other governments 18,929 - 18,929
Due to other funds - 200,000 200,000
Compensated absences payable - current 12,281 - 12,281
Total Current Liabilities 118,461 328,132 446,593
Noncurrent Liabilities
Other postemployment benefits 49,265 29,567 78,832
Compensated absences payable 4,115 11,214 15,329
Net pension liability 313,963 - 313,963
Total Noncurrent Liabilities 367,343 40,781 408,124
Total Liabilities 485,804 368,913 854,717
Deferred Inflows of Resources
Deferred pension resources 14,431 - 14,431
Deferred other post employment benefits 477 285 762
Total Deferred Inflows of Resources 14,908 285 15,193
Net Position
Net investment in capital assets 556,389 1,469,030 2,025,419
Unrestricted 892,397 331,632 1,224,029
Total Net Position 1,448,786$ 1,800,662$ 3,249,448$
The notes to the financial statements are an integral part of this statement.
148
City of Hopkins, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Funds
For the Year Ended December 31, 2022
717 750
Housing
Refuse Authority Totals
Operating Revenues
Charges for services 1,179,394$ 247,973$ 1,427,367$
Operating Expenses
Personal services 423,064 143,467 566,531
Contracted services 321,541 - 321,541
Supplies 68,446 - 68,446
Professional services 427,237 577,134 1,004,371
Insurance 14,263 - 14,263
Repairs and maintenance 885 - 885
Depreciation 72,546 194,036 266,582
Total Operating Expenses 1,327,982 914,637 2,242,619
Operating Loss (148,588) (666,664) (815,252)
Nonoperating Revenues (Expenses)
Investment earnings (loss)(1,052) - (1,052)
Miscellaneous 3,604 13,519 17,123
Intergovernmental grants 37,574 424,616 462,190
Total Nonoperating Revenues (Expenses)40,126 438,135 478,261
Loss Before Transfers (108,462) (228,529) (336,991)
Transfers Out (25,000) - (25,000)
Change in Net Position (133,462) (228,529) (361,991)
Net Position, January 1 1,582,248 2,029,191 3,611,439
Net Position, December 31 1,448,786$ 1,800,662$ 3,249,448$
The notes to the financial statements are an integral part of this statement.
149
City of Hopkins, Minnesota
Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2022
717 750
Housing
Refuse Authority Totals
Cash Flows from Operating Activities
Receipts from customers and users 1,172,443$ 320,670$ 1,493,113$
Payments to suppliers (797,553) (533,720) (1,331,273)
Payments to employees (408,919) (121,084) (530,003)
Net Cash Used by
Operating Activities (34,029) (334,134) (368,163)
Cash Flows from
Noncapital Financing Activities
Intergovernmental receipts 37,574 424,616 462,190
Transfers to other funds (25,000) - (25,000)
Net Cash Provided by
Noncapital Financing Activities 12,574 424,616 437,190
Cash Flows from Capital Financing Activities
Acquisition of capital assets - 9,111 9,111
Cash Flows from Investing Activities
Interest received (paid) on investments (1,007) - (1,007)
Net Increase (Decrease) in
Cash and Cash Equivalents (22,462) 99,593 77,131
Cash and Cash Equivalents, January 1 1,296,196 287,769 1,583,965
Cash and Cash Equivalents, December 31 1,273,734$ 387,362$ 1,661,096$
The notes to the financial statements are an integral part of this statement.
150
City of Hopkins, Minnesota
Statement of Cash Flows (Continued)
Enterprise Funds
For the Year Ended December 31, 2022
717 750
Refuse Housing
Utility Authority Totals
Reconciliation of Operating Loss
to Net Cash Used by Operating Activities
Operating loss (148,588)$ (666,664)$ (815,252)$
Adjustments to reconcile operating loss
to net cash used by operating activities
Depreciation 72,546 194,036 266,582
Other income related to operations 3,604 13,519 17,123
(Increase) decrease in assets
Receivables
Accounts (10,555) 8,255 (2,300)
Due from other governments - 50,923 50,923
Prepaids 827 (502) 325
Increase (decrease) in deferred outflows of resources
Deferred pension resources 9,423 - 9,423
Deferred other post employment benefit resources (10,998) (7,998) (18,996)
Increase (decrease) in liabilities
Accounts payable 40,241 43,916 84,157
Accrued salaries payable 1,448 20,278 21,726
Due to other governments (6,249) - (6,249)
Other postemployment benefits 11,961 12,805 24,766
Compensated absences payable 8,187 (2,716) 5,471
Net pension liability 51,705 - 51,705
Increase in deferred inflows of resources
Deferred pension resources (57,455) - (57,455)
Deferred other post employment benefit resources (126) 14 (112)
Net Cash Used by
Operating Activities (34,029)$ (334,134)$ (368,163)$
The notes to the financial statements are an integral part of this statement.
151
THIS PAGE IS LEFT
BLANK INTENTIONALLY
152
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department to other
departments of the government, on a cost reimbursement basis. Revenues and expenses are recognized on the accrual
basis. Revenues are recognized in the accounting period in which they are earned and become objectively measurable;
expenses are recognized in the period incurred, if objectively measurable.
Equipment Replacement Fund – This fund accounts for the acquisition of machinery and equipment. User charges are
billed to the various City departments.
Insurance Risk Fund – This fund accounts for the dividends and deductibles relating to property and casualty insurance
coverage. Deductibles are paid from past dividends. Users are charged only if the fund has a shortfall.
Employee Benefits Fund – This fund accounts for accrued employee benefits within the governmental funds. User
charges are billed to the various departments.
153
City of Hopkins, Minnesota
Internal Service Funds
Combining Schedule of Net Position
December 31, 2022
602 620 630
Equipment Employee Insurance
Replacement Benefits Risk Totals
Assets
Current Assets
Cash and temporary investments 1,679,229$ 1,214,897$ 264,878$ 3,159,004$
Receivables
Accounts - - 18,727 18,727
Prepaid items 1,475 - - 1,475
Total Current Assets 1,680,704 1,214,897 283,605 3,179,206
Noncurrent Assets
Capital assets
Construction in progress 497,199 - - 497,199
Machinery and equipment 9,845,780 - - 9,845,780
Less accumulated depreciation (6,212,254) - - (6,212,254)
Net Capital Assets 4,130,725 - - 4,130,725
Total Assets 5,811,429 1,214,897 283,605 7,309,931
Liabilities
Current Liabilities
Accounts payable 4,646 931 37,078 42,655
Compensated absences payable - current - 1,031,798 - 1,031,798
Total Liabilities 4,646 1,032,729 37,078 1,074,453
Net Position
Investment in capital assets 4,130,725 - - 4,130,725
Unrestricted 1,676,058 182,168 246,527 2,104,753
Total Net Position 5,806,783$ 182,168$ 246,527$ 6,235,478$
154
City of Hopkins, Minnesota
Internal Service Funds
Combining Schedule of Revenues, Expenses and Changes in Net Position
For the Year Ended December 31, 2022
602 620 630
Equipment Employee Insurance
Replacement Benefits Risk Totals
Operating Revenues
Charges for services 670,948$ -$ -$ 670,948$
Operating Expenses
Personal services 17,890 929 118,388 137,207
Capital 86,964 - - 86,964
Depreciation 776,425 - - 776,425
Total Operating Expenses 881,279 929 118,388 1,000,596
Operating Loss (210,331) (929) (118,388) (329,648)
Nonoperating Revenues (Expenses)
Investment earnings (loss)- (951) (174) (1,125)
Miscellaneous 1,030 - 70,373 71,403
Gain on sale of capital assets 112,496 - -112,496
Total Nonoperating
Revenues (Expenses)113,526 (951) 70,199 182,774
Loss Before Transfers (96,805) (1,880) (48,189) (146,874)
Transfers In 935,000 - - 935,000
Change in Net Position 838,195 (1,880) (48,189) 788,126
Net Position, January 1 4,968,588 184,048 294,716 5,447,352
Net Position, December 31 5,806,783$ 182,168$ 246,527$ 6,235,478$
155
City of Hopkins, Minnesota
Internal Service Funds
Combining Schedule of Cash Flows
For the Year Ended December 31, 2022
602 620 630
Equipment Employee Insurance
Replacement Benefits Risk Totals
Cash Flows from Operating Activities
Receipts from customers and users -$ 48$ 51,654$ 51,702$
Payment for interfund services 690,901 - - 690,901
Payments to suppliers (139,686) - - (139,686)
Payments to employees (17,890) 48,771 (81,545) (50,664)
Net Cash Provided (Used) by
Operating Activities 533,325 48,819 (29,891) 552,253
Cash Flows from
Noncapital Financing Activities
Transfers from other funds 935,000 - - 935,000
Cash Flows from Capital Financing Activities
Acquisition of capital assets (831,037) - - (831,037)
Proceeds from sale of capital assets 112,496 - - 112,496
Net Cash Used
by Capital Financing Activities (718,541) - - (718,541)
Cash Flows from Investing Activities
Interest received (paid) on investments - (951) (174) (1,125)
Net Increase (Decrease) in
Cash and Cash Equivalents 749,784 47,868 (30,065) 767,587
Cash and Cash Equivalents, January 1 929,445 1,167,029 294,943 2,391,417
Cash and Cash Equivalents, December 31 1,679,229$ 1,214,897$ 264,878$ 3,159,004$
Reconciliation of Operating Loss
to Net Cash Provided (Used) by Operating Activities
Operating loss (210,331)$ (929)$ (118,388)$ (329,648)$
Adjustments to reconcile operating loss
to net cash provided (used) by operating activities
Depreciation 776,425 - - 776,425
Other income related to operations 1,030 - 70,373 71,403
(Increase) decrease in assets
Accounts receivable 17,480 48 (18,719) (1,191)
Taxes receivable 1,443 - - 1,443
Prepaids (1,475) - - (1,475)
Increase (decrease) in liabilities
Accounts payable (51,247) 5 36,843 (14,399)
Compensated absences payable - 49,695 - 49,695
Net Cash Provided (Used) by
Operating Activities 533,325$ 48,819$ (29,891)$ 552,253$
156
City of Hopkins, Minnesota
Summary Financial Report
Revenues and Expenditures For General Operations
For the Years Ended December 31, 2022 and 2021
2022 2021
Revenues
Taxes 22,828,415$ 23,078,056$ (1.08) %
Licenses and permits 1,510,741 786,390 92.11
Intergovernmental 2,952,690 3,197,671 (7.66)
Charges for services 1,581,096 1,532,034 3.20
Fines and forfeits 110,300 129,999 (15.15)
Special assessments 933,901 972,490 (3.97)
Investment easrnings 329,445 23,737 1,287.90
Miscellaneous 483,493 527,768 (8.39)
Total Revenues 30,730,081$ 30,248,145$ 1.59 %
Per Capita 1,611$ 1,534$ 4.97 %
Expenditures
Current
General government 3,031,920$ 2,988,920$ 1.44 %
Public safety 9,048,839 8,514,218 6.28
Public works 2,268,415 3,567,039 (36.41)
Parks and recreation 3,489,064 2,870,586 21.55
Economic development 5,103,646 3,050,907 67.28
Capital outlay
General government 146,323 47,319 209.23
Public safety 85,562 - N/A
Public works 2,084,951 1,855,871 12.34
Parks and recreation 245,565 28,290 768.03
Economic development 2,924,910 - N/A
Debt service
Principal 5,530,000 8,265,000 (33.09)
Interest and other charges 2,001,953 1,975,385 1.34
Total Expenditures 35,961,148$ 33,163,535$ 8.44 %
Per Capita 1,885$ 1,682$ 12.04 %
Total Long-term Indebtedness 60,615,000$ 63,160,000$ (4.03) %
Per Capita 3,177 3,204 (0.84)
General Fund Balance - December 31 9,013,101$ 8,513,860$ 5.86 %
Per Capita 472 432 9.38
Total
Percent
Increase
(Decrease)
Governmental Funds
157
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BLANK INTENTIONALLY
158
STATISTICAL SECTION (UNAUDITED)
CITY OF HOPKINS
HOPKINS, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2022
159
THIS PAGE IS LEFT
BLANK INTENTIONALLY
160
STATISTICAL SECTION (UNAUDITED)
This part of the City of Hopkins’ annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the government’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the government’s financial
performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue
source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the government’s current levels
of out-standing debt and the government’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the government’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
government’s financial report relates to the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual financial reports for the
relevant year.
161
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Governmental Activities
Net investment in capital assets 30,666,268$ 31,272,253$ 32,609,356$ 33,833,387$
Restricted 10,014,203 16,967,889 16,967,889 16,967,889
Unrestricted 9,575,287 1,902,270 (9,447,813) (18,308,556)
Total Governmental Activities Net Position 50,255,758$ 50,142,412$ 40,129,432$ 32,492,720$
Business-type Activities
Net investment in capital assets 16,621,198$ 16,937,928$ 17,893,856$ 21,798,183$
Unrestricted 2,469,397 1,954,212 1,419,018 435,435
Total Business-type Activities Net Position 19,090,595$ 18,892,140$ 19,312,874$ 22,233,618$
Primary Government
Net investment in capital assets 47,287,466$ 48,210,181$ 50,503,212$ 55,631,570$
Restricted 10,014,203 16,967,889 16,967,889 16,967,889
Unrestricted 12,044,684 3,856,482 (8,028,795) (17,873,121)
Total Primary Government Net Position 69,346,353$ 69,034,552$ 59,442,306$ 54,726,338$
The City implemented GASB 68 and GASB 75 in 2015. Years prior to 2015 have not been restated
Fiscal Year
162
Table 1
2017 2018 2019 2020 2021 2022
32,064,111$ 37,136,053$ 37,857,254$ 40,389,884$ 40,801,556$ 42,085,537$
16,967,889 16,547,512 16,056,962 20,092,105 22,955,218 16,293,593
(17,563,673) (14,432,266) (14,865,750) (9,862,920) (5,907,384) (1,649,832)
31,468,327$ 39,251,299$ 39,048,466$ 50,619,069$ 57,849,390$ 56,729,298$
23,990,746$ 28,627,563$ 31,184,022$ 27,683,345$ 26,950,711$ 27,274,646$
1,433,445 1,733,552 1,863,196 4,083,537 4,765,994 4,327,220
25,424,191$ 30,361,115$ 33,047,218$ 31,766,882$ 31,716,705$ 31,601,866$
56,054,857$ 65,763,616$ 69,041,276$ 68,073,229$ 67,752,267$ 69,360,183$
16,967,889 16,547,512 16,056,962 20,092,105 22,955,218 16,293,593
(16,130,228) (12,698,714) (13,002,554) (5,779,383) (1,141,390) 2,677,388
56,892,518$ 69,612,414$ 72,095,684$ 82,385,951$ 89,566,095$ 88,331,164$
Fiscal Year
163
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued on the Following Pages)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Expenses
Governmental activities
General government 2,108,141$ 2,276,155$ 6,656,991$ 10,341,183$
Public safety 6,357,722 6,526,230 6,665,974 8,561,759
Health and welfare 165,649 171,187 185,248 185,301
Public works 5,845,437 5,709,009 4,542,014 5,168,939
Urban development and housing 2,000,868 2,247,553 1,249,457 1,398,736
Culture and recreation 1,857,743 1,941,912 2,068,887 2,231,605
Interest on long-term debt 908,264 711,697 688,155 952,756
Total Governmental Activities Expenses 19,243,824 19,583,743 22,056,726 28,840,279
Business-type activities
Water 1,387,807 1,540,940 1,699,540 1,878,807
Sewer 1,995,886 2,042,106 2,061,180 2,251,291
Storm sewer 448,170 508,686 394,707 397,660
Garbage 825,329 834,113 848,685 867,823
Pavilion/Ice Arena 426,634 460,246 462,771 483,035
Housing and Redevelopment Authority 615,043 625,667 610,318 616,653
Total Business-type Activities Expenses 5,698,869 6,011,758 6,077,201 6,495,269
Total Primary Government Expenses 24,942,693$ 25,595,501$ 28,133,927$ 35,335,548$
Program Revenues
Governmental activities
Charges for services
General government 76,477$ 56,635$ 82,686$ 72,716$
Public safety 180,548 118,248 79,415 274,661
Health and welfare 57,032 57,235 47,085 58,264
Public works 75,840 96,573 127,221 125,749
Urban development and housing 228 242 220,027 190,199
Culture and recreation 756,011 740,147 810,762 770,466
Operating grants and contributions 5,273,474 2,943,889 4,970,313 4,087,923
Capital grants and contributions 1,775,717 2,728,416 501,029 1,109,278
Total Governmental Activities Program Revenues 8,195,327 6,741,385 6,838,538 6,689,256
Business-type activities
Charges for services
Water 1,483,133 1,497,699 1,514,086 1,526,290
Sewer 1,999,333 2,025,763 2,172,277 2,215,251
Storm sewer 799,603 802,898 805,542 810,142
Refuse 901,670 906,387 910,672 959,258
Pavilion/Ice Arena 65,055 31,914 24,876 22,275
Housing and Redevelopment Authority 272,109 256,884 277,885 282,125
Operating grants and contributions 561,111 795,199 622,332 721,677
Capital grants and contributions 144,076 - - 702,555
Total Business-type Activities Program Revenues 6,226,090 6,316,744 6,327,670 7,239,573
Total Primary Government Program Revenues 14,421,417$ 13,058,129$ 13,166,208$ 13,928,829$
Fiscal Year
164
Table 2
2017 2018 2019 2020 2021 2022
6,751,459$ 4,361,727$ 5,435,138$ 2,949,580$ 721,904$ 4,226,750$
8,126,086 7,846,565 9,200,365 8,112,419 7,229,926 9,841,518
179,916 196,435 189,917 182,017 37,970 -
5,932,978 4,562,075 5,175,949 5,554,108 8,435,670 4,149,085
1,354,036 2,015,291 2,385,415 1,959,265 1,965,858 8,036,771
2,737,116 2,352,139 2,431,931 3,281,052 3,023,619 4,183,137
1,335,290 65,784 212,538 1,946,713 1,921,725 1,703,818
26,416,881 21,400,016 25,031,253 23,985,154 23,336,672 32,141,079
1,871,868 1,704,965 2,204,922 1,805,150 2,115,519 2,354,679
2,406,027 2,288,938 2,618,842 2,562,282 2,608,224 2,894,178
460,771 461,036 605,214 581,641 577,563 544,962
874,750 910,481 924,090 964,002 1,111,069 1,327,982
547,831 689,178 1,081,741 1,038,880 1,138,086 1,096,391
591,895 677,169 743,227 642,736 606,643 914,637
6,753,142 6,731,767 8,178,036 7,594,691 8,157,104 9,132,829
33,170,023$ 28,131,783$ 33,209,289$ 31,579,845$ 31,493,776$ 41,273,908$
175,390$ 43,471$ 207,884$ 152,975$ 363,606$ 2,537,997$
172,584 171,291 912,258 685,188 810,623 174,224
59,645 48,550 220,450 174,717 141,294 -
125,046 165,600 161,687 161,546 399,013 132,884
146,491 961,625 25,264 473,402 535,434 -
788,549 861,815 1,045,810 564,036 688,346 1,021,994
8,007,553 11,597,974 2,337,984 5,472,891 846,098 1,536,123
1,731,738 1,630,559 - - 972,490 542,947
11,206,996 15,480,885 4,911,337 7,684,755 4,756,904 5,946,169
1,837,434 1,931,035 1,997,826 1,815,713 2,379,130 2,336,580
2,698,307 2,780,090 2,880,695 2,440,559 3,128,088 3,170,831
809,262 806,605 806,193 800,605 802,568 806,213
956,056 954,620 984,085 969,796 975,107 1,182,495
37,080 62,161 484,640 316,822 464,169 499,927
294,000 402,899 285,861 244,196 263,898 261,492
697,635 579,401 901,137 360,912 217,609 565,267
- - - - - -
7,329,774 7,516,811 8,340,437 6,948,603 8,230,569 8,822,805
18,536,770$ 22,997,696$ 13,251,774$ 14,633,358$ 12,987,473$ 14,768,974$
Fiscal Year
165
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Net Revenues (Expenses)
Governmental activities (11,048,497)$ (12,842,358)$ (15,218,188)$ (22,151,023)$
Business-type activities 527,221 304,986 250,469 744,304
Total Primary Government Net (Expenses) Revenues (10,521,276)$ (12,537,372)$ (14,967,719)$ (21,406,719)$
General Revenues and Other Changes in Net Position
Governmental activities
Taxes
Property taxes 10,565,115$ 11,207,914$ 11,038,746$ 11,994,436$
Franchise and other taxes - - - -
Tax increments 2,002,607 2,700,110 2,920,681 2,959,459
Grants and contributions not
restricted to specific programs 21,152 20,510 20,510 20,510
Unrestricted investment earnings 105,213 193,546 279,418 124,406
Gain on sale of capital assets 34,651 27,235 27,235 62,013
Miscellaneous revenues - - - -
Transfers 145,000 493,093 (864,187) (2,089,914)
Total Governmental Activities 12,873,738 14,642,408 13,422,403 13,070,910
Business-type activities
Property taxes - - - 63,519
Grants and contributions not
restricted to specific programs - - - -
Unrestricted investment earnings (loss)18,788 24,503 64,161 13,231
Gain on sale of capital assets 21,855 - 23,477 9,776
Miscellaneous revenues - - - -
Transfers (145,000) (493,093) 864,187 2,089,914
Total Business-type Activities (104,357) (468,590) 951,825 2,176,440
Total Primary Government 12,769,381$ 14,173,818$ 14,374,228$ 15,247,350$
Change in Net Position
Governmental activities 1,825,241$ 1,800,050$ (1,795,785)$ (9,080,113)$
Business-type activities 422,864 (163,604) 1,202,294 2,920,744
Total Primary Government 2,248,105$ 1,636,446$ (593,491)$ (6,159,369)$
Note:The City began separately identyfying franchise fee revenue in 2019.
Fiscal Year
166
Table 2
2017 2018 2019 2020 2021 2022
(15,209,885)$ (5,919,131)$ (20,119,916)$ (16,300,399)$ (18,579,768)$ (26,194,910)$
576,632 785,044 162,401 (646,088) 73,465 (310,024)
(14,633,253)$ (5,134,087)$ (19,957,515)$ (16,946,487)$ (18,506,303)$ (26,504,934)$
12,895,910$ 14,343,939$ 16,937,577$ 19,934,102$ 16,768,653$ 17,536,200$
- - 1,201,549 1,190,241 1,183,050 1,160,763
2,146,730 2,433,504 3,209,850 3,812,055 4,244,240 4,108,301
20,510 56,990 629,159 810,638 906,581 1,356,976
168,437 225,337 396,461 129,584 26,182 328,320
69,883 45,002 1,162 131,004 46,020 112,496
- - - 34,990 40,079 -
(3,533,235) (4,218,053) (2,458,675) 1,828,388 471,762 471,762
11,768,235 12,886,719 19,917,083 27,871,002 23,686,567 25,074,818
- 81 40,054 288,525 340,249 417,999
- - 2,648 2,595 646 250,000
20,760 13,153 17,925 10,174 2,660 (1,052)
(54) 17,210 4,400 8,710 - -
- - - 5,684 4,565 -
3,533,235 4,218,053 2,458,675 (949,936) (471,762) (471,762)
3,553,941 4,248,497 2,523,702 (634,248) (123,642) 195,185
15,322,176$ 17,135,216$ 22,440,785$ 27,236,754$ 23,562,925$ 25,270,003$
(3,441,650)$ 6,967,588$ (202,833)$ 11,570,603$ 5,106,799$ (1,120,092)$
4,130,573 5,033,541 2,686,103 (1,280,336) (50,177) (114,839)
688,923$ 12,001,129$ 2,483,270$ 10,290,267$ 5,056,622$ (1,234,931)$
Fiscal Year
167
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2013 2014 2015 2016
General Fund
Fund balance
Nonspendable 231,608$ 213,499$ 227,113$ 87,263$
Restricted - - - -
Assigned 426,768 339,055 340,189 340,857
Unassigned 4,823,141 5,184,071 5,439,798 5,437,774
Total General Fund 5,481,517$ 5,736,625$ 6,007,100$ 5,865,894$
All Other Governmental Funds
Fund balance
Nonspendable 1,495$ 201$ 204$ -$
Restricted 5,199,415 12,683,242 16,720,476 15,207,736
Committed 4,509,026 4,574,733 4,882,609 5,034,095
Assigned 3,313,086 4,162,299 1,249,239 -
Unassigned (2,011,214) (2,029,619) (1,960,918) (2,789,907)
Total All Other Governmental Funds 11,011,808$ 19,390,856$ 20,891,610$ 17,451,924$
Fiscal Year
168
Table 3
2017 2018 2019 2020 2021 2022
135,373$ 192,368$ 211,100$ 189,994$ 245,213$ 292,322$
- - - - 33,754 -
245,494 245,494 245,494 245,494 245,494 245,494
5,471,420 5,179,824 5,627,395 6,922,014 7,989,399 8,475,285
5,852,287$ 5,617,686$ 6,083,989$ 7,357,502$ 8,513,860$ 9,013,101$
-$ -$ 8,740$ 1,233,628$ 15,433$ 8,498$
13,114,006 13,826,248 14,085,841 1,709,561 17,768,230 12,352,557
5,157,831 3,722,663 4,589,273 4,704,059 3,343,340 3,434,292
1,655,606 - - - 341,514 2,517,487
(1,536,968) (3,373,861) (3,123,872) (3,420,274) (1,598,838) (1,412,710)
18,390,475$ 14,175,050$ 15,559,982$ 4,226,974$ 19,869,679$ 16,900,124$
Fiscal Year
169
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
2013 2014 2015 2016
Revenues
Taxes
General property tax 10,600,854$ 11,212,334$ 11,190,091$ 12,181,695$
Tax increments 2,002,607 2,700,110 2,920,681 2,959,459
Franchise and other taxes - - - -
Licenses and permits 649,672 569,585 489,373 686,785
Intergovernmental 3,775,172 3,272,977 2,234,195 2,698,372
Charges for services 884,354 835,960 848,775 1,000,847
Fines and forfeitures 251,170 229,807 258,924 223,131
Special assessments 1,634,903 1,202,401 1,003,444 1,404,258
Investment earnings 94,024 172,012 257,543 115,925
Miscellaneous 1,343,592 1,148,505 1,474,048 1,870,874
Total Revenues 21,236,348 21,343,691 20,677,074 23,141,346
Expenditures
Current
General government 1,598,885 2,126,004 2,586,582 2,886,837
Public safety 6,089,431 6,154,320 6,253,424 6,718,046
Health and welfare 164,237 167,088 176,248 181,666
Public works 4,709,377 4,495,659 3,180,023 3,797,748
Urban development and housing 2,826,172 2,192,453 1,219,526 1,337,387
Culture and recreation 1,510,024 1,747,614 1,851,741 2,016,229
Capital outlay 4,272,737 2,144,714 8,789,979 7,325,037
Debt service
Principal 3,265,000 1,970,000 8,570,000 3,075,000
Interest and other charges 853,433 709,367 646,387 855,114
Total Expenditures 25,289,296 21,707,219 33,273,910 28,193,064
Excess (Deficiency) or Revenues
Over (Under) Expenditures (4,052,948) (363,528) (12,596,836) (5,051,718)
Other Financing Sources (Uses)
Bonds issued 1,920,000 1,895,000 18,735,000 8,770,000
Issuance of refunding debt - 6,345,000 - 3,540,000
Discount on debt -
Premium on debt 42,010 214,606 425,129 452,971
Refunded bond payment - (3,927,887) (7,305,660)
Transfers in 2,948,556 9,351,659 8,513,635 8,112,133
Transfers out (3,210,410) (8,858,566) (9,377,822) (12,098,618)
Total Other Financing Sources (Uses)1,700,156 8,947,699 14,368,055 1,470,826
Net Change in Fund Balance (2,352,792)$ 8,584,171$ 1,771,219$ (3,580,892)$
Debt Service as a Percentage of
Noncapital Expenditures 19.60 %13.70 %37.60 %18.80 %
Note: Capital outlay has been adjusted for items not shown as capital expenditures on the entity wide statements and
reclassified to their respective expenditure category.
Fiscal Year
170
Table 4
2017 2018 2019 2020
13,089,431$ 14,414,205$ 16,198,293$ 17,615,073$ 17,650,766$ 17,559,351$
2,146,730 2,433,504 3,209,850 3,812,055 4,244,240 4,108,301
- - 1,201,549 1,190,241 1,183,050 1,160,763
811,826 702,431 813,964 660,802 786,390 1,510,741
3,743,694 8,466,571 2,967,143 3,532,869 3,197,671 2,952,690
1,008,699 933,517 999,088 1,131,867 1,532,034 1,581,096
230,804 190,395 196,519 154,458 129,999 110,300
1,753,923 1,121,267 1,485,089 1,469,269 972,490 933,901
157,870 215,005 386,362 124,848 23,737 329,445
2,463,487 1,260,706 2,134,390 256,452 527,768 483,493
25,406,464 29,737,601 29,592,247 29,947,934 30,248,145 30,730,081
3,285,079 2,872,325 3,734,294 3,158,192 2,988,920 3,031,920
7,154,007 7,600,081 7,994,658 8,406,864 8,476,240 9,048,839
177,734 190,623 185,824 179,037 37,978 -
4,546,602 3,283,862 3,514,461 4,029,879 3,567,039 2,268,415
1,306,327 2,294,347 2,364,752 3,242,027 3,050,907 5,103,646
2,107,616 2,024,126 2,052,975 1,563,283 2,870,586 3,489,064
11,753,941 19,310,698 12,147,357 3,792,987 1,931,480 5,487,311
3,080,000 3,890,000 6,475,000 4,715,000 8,265,000 5,530,000
1,050,401 1,496,932 1,670,990 2,064,981 1,975,385 2,001,953
34,461,707 42,962,994 40,140,311 31,152,250 33,163,535 35,961,148
(9,055,243) (13,225,393) (10,548,064) (1,204,316) (2,915,390) (5,231,067)
13,530,000 6,715,000 13,565,000 5,280,000 3,720,000 2,985,000
- - - - - -
1,352,173 168,423 1,292,974 556,513 136,611 238,981
(3,678,549)
12,157,526 9,870,518 13,748,936 6,822,304 8,469,208 13,077,311
(15,690,761) (8,822,290) (16,207,611) (6,127,906) (7,997,446) (13,540,549)
7,670,389 7,931,651 12,399,299 6,530,911 4,328,373 2,760,743
(1,384,854)$ (5,293,742)$ 1,851,235$ 5,326,595$ 1,412,983$ (2,470,324)$
18.20 %22.80 %29.10 %24.80 %32.80 %22.11 %
Fiscal Year
20222021
171
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars )
Fiscal
Year Less:
Ended Residential Apartment Commercial Industrial Other Tax-Exempt
December 31,Property Property Property Property Property Property
2013 867,012$ 269,812$ 405,840$ 174,255$ 1,492$ (179,699)$
2014 838,714 277,435 419,190 177,413 1,492 (179,699)
2015 917,367 313,183 430,897 181,538 1,506 (179,699)
2016 961,676 363,334 439,692 191,925 1,604 (179,699)
2017 999,228 406,566 530,859 198,797 1,350 (254,549)
2018 1,004,480 449,375 541,376 181,049 1,429 (254,549)
2019 1,128,890 562,141 580,479 174,975 1,519 (254,549)
2020 1,188,831 596,056 603,388 200,628 1,585 (254,549)
2021 1,224,197 609,086 603,812 209,376 1,383 (254,549)
2022 1,412,130 654,172 598,850 235,625 1,436 (254,549)
Notes:
(1) The direct tax rate is applied to the tax capacity of the property which is calculated by applying a statutory formula
to the estimated market value of the property. The tax capacity is then multiplied by the direct tax rate to determine
the city taxes payable on a specific parcel.
(2) Tax exempt property is revalued on a six-year cycle. All other property is revalued on a three year cycle.
172
Table 5
Total Taxable
Market Total Direct
Value Tax Rate
1,538,712$ 63.819 %
1,534,545 64.290
1,664,792 62.503
1,778,532 65.581
1,882,251 64.485
1,923,160 67.833
2,193,455 71.697
2,335,939 70.748
2,393,305 67.664
2,647,664 66.840
173
Table 6
General
Fiscal Basic Obligation Debt Total School Hennepin Metro
Year Rate Service Direct Rate District County Council
2013 55.902 %7.917 %63.819 %29.730 %49.461 %3.242 %
2014 55.743 8.547 64.290 32.358 49.959 3.335
2015 53.884 8.619 62.503 30.340 46.398 3.006
2016 55.365 10.216 65.581 28.514 45.356 2.899
2017 54.251 10.234 64.485 25.611 44.087 2.821
2018 53.153 14.680 67.833 29.035 42.808 2.630
2019 53.153 15.870 69.023 27.022 41.861 2.542
2020 53.945 16.803 70.748 27.190 41.084 2.461
2021 52.361 15.303 67.664 26.478 38.210 2.268
2022 52.040 14.800 66.840 26.783 38.535 2.240
Source: Hennipen County, Minnesota Taxpayer Services Department
Rates for debt service are based on each year's requirements.
City Direct Rate Overlapping Rates
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Property Tax Capacity Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Note: The City's basic rate is determined by the City's annual budget requirement as set by the City Council.
174
Table 6
Total Direct and
Total Overlapping Tax
Other Overlapping Rate
8.241 %90.674 %154.493 %
8.716 94.368 158.658
8.094 87.838 150.341
7.864 84.633 150.214
7.755 80.274 144.759
7.984 82.457 150.290
7.172 78.597 147.620
6.869 77.604 148.352
6.565 73.521 141.185
6.590 74.148 140.988
Overlapping Rates
175
Table 7City of Hopkins, Minnesota
Statistical Section (Unaudited)
Principal Property Taxpayers
Current Year and Nine Years Ago
Net Net
Tax Tax
Taxpayer Capacity Rank Capacity Rank
BOF II MN Excelsior Crossing 1,859,170$ 1 5.98 %-$ -
Piedmont 9320 Excelsior Blvd 942,430 2 3.03 - -
Doran 810 Apartments 741,513 3 2.39 - -
Hopkins Distribution Co LLC 559,250 4 1.80 - -
Individual 527,375 5 1.70 210,613 6 1.11 %
Southwest Real Estate, Inc.366,843 6 1.18 - -
Greenfield Apartments LP 612,538 7 1.97 - -
Duke Realty 302,830 8 0.97 199,490 8 1.05
TKG-Storagemart Partnership 301,450 9 0.97 - -
SuperValu 297,490 10 0.96 969,890 1 5.10
Excelsior Crossings, LLC - - 741,650 2 3.90
Hines Global Reit 9320 Excel - - 740,770 3 3.90
American Fund US Invest LP - - 738,510 4 3.89
Southwest Real Estate, Inc.- - 222,163 5 1.17
Hopkins Real Estate - - 210,250 7 1.11
Hines Reit Mpls Ind LLC - - 199,250 9 1.05
City Center Ventures - - 185,450 10 0.98
Total 6,510,889$ 20.95 %4,418,036$ 23.25 %
Total City 2022/2013 tax capacity 31,079,760$ 18,999,651$
Source: Hennipen County, Minnesota Assessor's Office
Notes: Tax capacity is a percentage of total market value. These class rates are 1% for residential, 1.25% for apartments and 1.5% of the first $150,000
Tax Capacity Tax Capacity
2022 2013
Percent of Percent of
Total Net Total Net
176
Table 8City of Hopkins, Minnesota
Statistical Section (Unaudited)
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Collections in Outstanding Percentage
Ended Operating Debt Total Percentage of Subsequent Percentage of Delinquent of Levy
December 31,Tax Levy Tax Levy Tax Levy Amount Levy Years (1)Amount Levy Taxes Outstanding
2013 9,219,774$ 1,306,400$ 10,526,174$ 10,319,805$ 98.0 %45,857$ 10,365,662$ 98.5 %160,512$ 1.5 %
2014 9,268,754 1,421,461 10,690,215 10,506,537 98.3 13,474 10,520,011 98.4 170,204 1.6
2015 9,735,801 1,514,844 11,250,645 11,009,239 97.9 44,044 11,053,283 98.2 197,362 1.8
2016 10,338,764 1,907,878 12,246,642 12,120,075 99.0 (9,407) 12,110,668 98.9 135,974 1.1
2017 11,151,866 2,103,366 13,255,232 12,984,829 98.0 21,142 13,005,971 98.1 249,261 1.9
2018 11,403,994 3,149,223 14,553,217 14,187,600 97.5 148,029 14,335,629 98.5 217,588 1.5
2019 12,714,661 3,613,429 16,328,090 16,163,548 99.0 12,160 16,175,708 99.1 152,382 0.9
2020 13,647,481 4,250,154 17,897,635 17,804,266 99.5 (73,152) 17,731,114 99.1 166,521 0.9
2021 14,057,804 4,108,650 18,166,454 18,941,429 104.3 (78,006) 18,863,423 103.8 (696,969) (3.8)
2022 14,528,358 4,003,044 18,531,402 18,403,102 99.3 - 18,403,102 99.3 128,300 0.0
Notes:
(1) During the years 2013 - 2015, there were a significant number of tax court challenges that resulted in taxes being
rebated to taxpayers resulting in higher delinquent taxes for the years 2013 - 2015
Total Collections to DateTaxes Levied for the Fiscal Year Fiscal Year of Levy
Collected within the
177
General Tax Special Net Net
Fiscal Obligation Increment Assessments Financed Premiums Revenue Premiums
Year Bonds Bonds Bonds Purchases (Discounts)Bonds (Discounts)
2013 9,388,707$ 4,691,998$ 8,745,591$ 237,990$ -$ 6,054,706$ -$
2014 15,092,501 4,095,716 10,123,177 194,868 - 5,488,002 -
2015 15,637,818 15,519,181 8,757,855 149,616 - 4,807,632 -
2016 23,522,410 17,869,376 8,155,188 102,128 - 4,422,261 -
2017 35,893,456 16,852,700 7,547,520 52,675 - 6,500,290 -
2018 36,883,957 19,269,286 6,919,853 - - 9,369,368 -
2019 47,657,083 19,269,286 6,919,853 - - 8,661,985 -
2020 51,980,000 11,325,000 4,400,000 - 3,530,119 15,800,000 1,032,584
2021 50,855,000 11,105,000 1,200,000 - 3,333,433 17,875,000 1,129,510
2022 49,595,000 9,940,000 1,080,000 - 3,223,446 21,405,000 1,275,093
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a)See Table 14 for personal income and population data.
Governmental Activities Business-Type Activities
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
178
Table 9
Total Percentage
Primary of Personal Per
Government Income Capita(a)
29,118,992$ 14.23 %1,623$
34,994,264 16.94 1,900
44,872,102 20.75 2,436
54,071,363 23.94 2,812
66,846,641 28.63 3,518
72,442,464 33.68 3,797
82,508,207 35.09 4,185
88,067,703 37.64 4,467
85,497,943 34.77 4,428
86,518,539 32.58 4,535
179
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180
Table 10City of Hopkins, Minnesota
Statistical Section (Unaudited)
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Less: Amount Percentage of
General Tax Available Actual
Fiscal Obligation Improvement Revenue Increment In Debt Net Taxable Value Per
Year Bonds Bonds Bonds Bonds Total Service Fund Bonded Debt of Property (1)Capita (2)
2013 9,388,707$ 8,745,591 6,054,706 4,691,998 28,881,002 7,871,612$ 21,009,390$ 1.365 %1,171$
2014 15,092,501 10,123,177 5,488,002 4,095,716 34,799,396 14,373,448 20,425,948 1.331 1,109
2015 15,637,818 8,757,855 4,807,632 15,519,181 44,722,486 15,540,533 29,181,953 1.753 1,518
2016 23,522,410 8,155,188 4,422,261 17,869,376 53,969,235 11,342,561 42,626,674 2.397 2,217
2017 35,893,456 7,547,520 6,500,290 16,852,700 66,793,966 10,596,245 56,197,721 2.986 2,958
2018 36,883,957 6,919,853 9,369,368 19,269,286 72,442,464 8,599,909 63,842,555 3.320 3,346
2019 47,522,953 4,933,026 8,661,984 18,637,449 79,755,412 6,244,002 73,511,410 3.351 3,759
2020 54,773,025 4,468,576 16,832,583 11,993,519 88,067,703 9,435,593 78,632,110 3.366 3,989
2021 54,108,059 1,259,127 19,004,510 11,126,247 85,497,943 6,363,710 79,134,233 3.306 4,014
2022 52,511,967 1,133,852 22,680,093 10,192,627 86,518,539 7,489,179 79,029,360 2.985 4,142
Notes:
Details regarding the City's outstanding debt can be found in note 9 of the notes to the financial statements.
(1) See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data
(2) See the Demographic and Economic Statistics schedule 14 for population data
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182
Table 11City of Hopkins, Minnesota
Statistical Section (Unaudited)
Direct and Overlapping Governmental Activities Debt
December 31, 2022
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable (a)Debt
Debt Repaid with Property Taxes
School Districts
Hopkins ISD #270 155,465,000$ 16.57%25,760,551$
St. Louis Park ISD #283 254,895,000 57.00%145,290,150
Other
Hennepin County 1,439,270,000 1.09%15,688,043
Hennepin Suburban Park District 58,975,000 1.51%890,523
Hennepin Regional RR Authority 86,235,000 1.09%939,962
Metropolitan Council 1,717,186,171 59.00%1,013,139,841
Subtotal - Overlapping Debt 1,201,709,068
City of Hopkins Direct Debt (b,c)60,615,000 100.00%60,615,000
Total Direct and Overlapping Debt 1,262,324,068$
Source: Hennepin County, Minnesota Taxpayer Services
Governmental Unit
(a) The percentage of overlapping debt applicable is estimated using the taxable mar
(b) City of Hopkins direct debt includes long-term debt instruments of the City which
(c) Net Debt Outstanding excludes revenue and special assessment debt.
Note: Overlapping governments are those that coincide, at least in part, with the geographic
boundaries of the City. This schedule shows the portion of the outstanding debt of those
overlapping governments that is borne by the residents and businesses of the City. This process
recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
183
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
2013 2014 2015 2016
Statutory Debt Limit 46,161$ 46,036$ 48,168$ 51,633$
Total Net Debt Applicable to Limit 8,903 8,736 14,661 21,761
Legal Debt Margin 37,258$ 37,300$ 33,507$ 29,872$
Total net debt applicable to the limit
as a percentage of debt limit 19.29%18.98%30.44%42.15%
Fiscal Year
184
Table 12
2017 2018 2019 2020 2021 2022
54,888$ 57,695$ 64,368$ 68,712$ 71,799$ 79,430$
24,401 32,175 43,834 42,563 42,723 44,240
30,487$ 25,520$ 20,534$ 26,149$ 29,076$ 35,190$
44.46%55.77%68.10%61.94%59.50%55.70%
Legal Debt Margin Calculation for Fiscal Year 2022
Estimated Market Value of Taxable Property 2,647,665$
Statutory percentage 3.0%
Statutory debt limit 79,430
Debt applicable to limit 49,595
Less amounts set aside for repayment
of general obligation debt (5,355)
Total net debt applicable to limit 44,240
Fiscal Year
185
Table 13City of Hopkins, Minnesota
Statistical Section (Unaudited)
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Capita
Fiscal Personal Personal School Unemployment
Year Population (1)Income (2)Income (2)Enrollment (3)Rate (4)
2013 17,939 203,498,000$ 49,147$ 8,555 4.3 %
2014 18,413 206,789,000 49,460 8,489 3.8
2015 19,227 216,218,000 51,244 8,495 3.1
2016 19,227 225,882,000 53,121 8,327 3.8
2017 19,000 233,465,000 53,166 8,182 3.6
2018 19,079 215,086,000 59,736 8,152 2.8
2019 19,555 227,292,000 62,889 8,345 2.7
2020 19,713 233,890,000 64,255 8,806 6.0
2021 19,713 245,833,000 67,214 8,139 2.6
2022 19,079 265,392,000 71,912 7,621 2.8
Sources of data:
(1)Metropolitan Council
(2)U.S. Department of Commerce Bureau of Economic Analysis data for Minnesota Metropolitan Area
(3)Minnesota Department of Education and is for public and non-public schools in Hopkins School District #270
(4)Minnesota Department of Employment and Economic Development, based on December rates
186
Table 15City of Hopkins, Minnesota
Statistical Section (Unaudited)
Principal Employers
Current Year and Nine Years Ago
Percent Percent
of City of City
Employer Employees Rank Employment Employees Rank Employment
ISD 270 Hopkins (1)1,550 1 8.124%707 3 5.037%
UNFI (SuperValue)1,200 2 6.290%1,249 2 8.898%
Colfin Midwest NNN INV LLC (Cargil)1,173 3 6.148%2,313 1 16.478%
Thermotech 400 4 2.097%190 7 1.354%
US Post Office 314 5 1.646%314 4 2.237%
Oak Ridge Country Club 185 6 0.970%195 6 1.389%
Augustana Chapel View Care Center 185 7 0.970%185 9 1.318%
US Bank 185 8 0.970%185 8 1.318%
City of Hopkins 154 9 0.807%160 10 1.140%
Walser Auto Group 100 10 0.524%- 0.00%
Viro Med Labrotories - 200 5 1.425%
Total 5,446 5,698
Sources: Minnesota Department of Employment and Economic
Development, Metropolitan Council and Minnesota State Business Directory
Note: (1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
2022 2013
187
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2013 2014 2015 2016
General Government
Administrative Services 5.00 5.00 5.00 5.05
Finance 4.60 4.60 4.60 4.00
Municipal Building 1.45 1.45 1.45 1.45
Community Services 9.80 9.70 9.70 8.65
Public Safety
Police 36.45 34.50 36.50 36.78
Fire 1.25 1.25 1.25 3.25
Public Works 17.69 17.09 18.09 17.58
Recreation
Activity Center 3.20 3.20 3.20 3.25
Skate Park 0.05 0.05 0.05 0.05
Planning & Zoning 1.35 1.35 1.35 1.35
Community Development 0.85 0.85 0.85 1.50
Total General Government 81.69 79.04 82.04 82.91
Special Revenue Funds
Economic Development 1.15 1.60 1.60 1.25
Paratransit - - - -
Housing Rehabilitation - - - -
Parking 0.72 0.72 1.00 0.72
Communication 0.25 0.25 0.25 0.75
Depot Coffee House 2.50 2.50 2.50 5.25
Art Center 3.80 3.80 4.30 4.30
Total Special Revenue Funds 8.42 8.87 9.65 12.27
Enterprise Funds
Water 3.13 3.13 3.43 2.60
Sanitary Sewer 3.46 3.46 3.76 3.40
Function/Program
Full-time Equivalent Employees as of December 31,
188
Table 15
2017 2018 2019 2020 2021 2022
5.50 5.00 4.00 5.00 6.55 6.67
5.00 4.00 4.00 4.00 4.00 3.60
1.45 1.45 1.45 1.45 1.45 1.28
7.20 8.95 8.95 6.95 8.40 9.49
38.45 38.28 38.45 37.28 38.28 37.23
3.25 4.10 4.10 4.10 5.10 5.50
18.09 19.98 20.98 19.98 18.48 20.49
3.20 2.80 3.00 2.00 3.00 3.00
0.05 0.05 0.05 0.05 0.05 0.05
1.35 1.35 1.35 1.35 1.35 1.35
0.85 0.85 0.85 0.85 0.85 0.85
84.39 86.81 87.18 83.01 87.51 89.51
1.60 2.00 2.00 2.00 2.00 2.50
-
-
0.72 1.12 1.12 1.12 1.12 1.12
1.25 1.00 1.00 1.00 1.00 1.00
5.25 5.00 4.62 2.75 2.75 2.75
4.30 5.28 5.28 4.66 5.50 4.53
13.12 14.40 14.02 11.53 12.37 11.90
3.43 4.79 3.79 4.79 4.15 4.15
3.76 2.60 2.60 2.60 2.24 2.24
Full-time Equivalent Employees as of December 31,
189
City of Hopkins, Minnesota
Operating Indicators by Function/Program
Last Ten Fiscal Years
2013 2014 2015 2016
General Government
Elections 1 2 1 2
Registered voters 9,917 10,912 9,647 10,418
Number of votes cast 1,674 9,130 1,058 9,198
Voter participation (registered)16.9%83.7%11.0%88.3%
Public Safety
Police
Total Calls for Service 25,286 26,140 23,535 24,549
Sworn Officers 26 26 28 27
Traffic Stops 6,333 5,741 6,055 6,910
Parking Citations 979 820 725 640
Fire
Fires 38 51 18 81
False Alarm 101 100 103 130
Fire Runs 382 428 467 566
Medical Runs 178 195 177 1,277
Average Response Time (minutes)4.2 4.2 4.4 4.2
Inspections
Building Permits 509 455 501 451
Value of Building Permits $44,183,445 $16,453,985 $12,631,596 $76,838,870
Public Works
Miles of seal coating 5.49 5.26 1.81 1.05
Miles of crack sealing 3.75 5.85 5.26 1.54
Sidewalk repairs in square feet 5,172 4,482 6,800 6,286
Alley repairs in square yards 190 41 182 180
Function/Program
Fiscal Year
190
Table 16
2017 2018 2019 2020 2021 2022
1 2 1 2 1 1
10,366 22,279 10,684 12,613 11,986 10,742
2,164 11,583 1,514 10,598 2,674 7,323
20.9%52.0%14.2%84.0%22.0%68.2%
26,724 26,063 23,996 26,139 21,432 23,718
27 27 30 28 28
6,232 6,212 4,929 3,589 1,720 2,592
662 542 499 423 N/A N/A
43 31 39 39 29 38
123 110 29 36 38 147
415 322 235 180 303 293
119 143 111 129 1,208 1,235
4.2 4.2 4.1 4.1 4.6 4.6
485 405 506 636 707 455
$19,553,988 $27,785,861 $45,193,752 $21,124,485 $38,156,628 $137,019,951
1.32 1.18 N/A 1.98 1.53 3.65
2.22 2.33 8.87 1.35 N/A 3.65
10,260 25,905 40,100 4,543 1,202 11,325
1,235 712 45 N/A N/A 529
Fiscal Year
191
City of Hopkins, Minnesota
Statistical Section (Unaudited)
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2013 2014 2015 2016
Public Safety
Police
Stations 1 1 1 1
Patrol Units 11 11 11 11
Fire
Stations 1 1 1 1
Public Works
Highways (miles)3.57 3.57 3.57 3.57
County Highways 5.32 5.32 5.32 5.32
City Streets (miles)47.50 47.50 47.50 47.50
Alleys (miles)9.52 9.52 9.52 9.52
Streetlights 398 398 398 398
Traffic Signals 44 44 44 44
Refuse collection trucks 3 3 3 3
Culture & Recreation
Parks
Parks 16 16 16 16
Park Trails 4 4 4 4
Park Acres 104 104 104 104
Park Shelters 11 11 11 11
Playgrounds 11 11 11 11
Skateboard Park/Inline Skating 1 1 1 1
Skating Rinks 7 7 7 7
Hockey Rinks 5 5 5 5
Basketball Courts 6 6 6 6
Pickleball Courts - - - -
Softball Fields 4 4 4 4
Swimming Beach 1 1 1 1
Tennis Courts 8 8 8 8
Volleyball Courts 2 2 2 2
Watermains
Distribution System (miles)52.60 52.60 52.60 52.60
Fire Hydrants 560 560 560 560
Storage Capacity (gallons in thous)3,200 3,200 3,200 3,200
Function/Program
Fiscal Year
192
2017 2018 2019 2020 2021 2022
1 1 1 1 1 1
11 11 11 11 11 11
1 1 1 1 1 1
3.57 3.57 3.57 3.57 3.57 4.18
5.32 5.32 5.32 5.32 5.32 4.09
47.50 47.50 47.50 47.50 47.50 39.28
9.52 9.52 9.52 9.52 9.52 9.90
398 398 398 398 398 557
44 44 44 44 44 43
3 3 3 3 3 3
16 16 16 16 16 14
4 4 4 4 4 4
104 104 104 104 104 127
11 11 11 11 11 11
11 11 11 11 11 10
1 1 1 1 1 1
7 7 7 7 7 7
5 5 5 5 5 4
6 6 6 6 6 6
- - 1 1 1 1
4 4 4 4 4 8
1 1 1 1 1 1
8 8 8 8 8 7
2 2 2 2 2 2
52.60 52.60 52.60 52.60 52.60 57.44
560 560 560 560 560 439
3,200 3,200 3,200 3,200 3,200 3,200
Table 17
Fiscal Year
193