Memo - Budget•
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May 18, 2000
REVIEW OF BUDGET GOALS
The City of Hopkins is in the process of establishing the year 2001 budget and tax levy goals. To
begin with lets look at the 2000 goals and review the progress.
Following is a list of goals made for 2000.
2000 BUDGET GOALS
• Maintain basic city services at current levels.
• Analyze all programs and services to:
- look for ways to reduce dependency on the property tax,
- find greater efficiencies in the provision of current services and programs,
- compare staffing levels to workloads to assure proper allocation of resources,
create greater linkages between revenues and expenditures, to allow for more entrepreneurial
approaches to non - essential services.
• Forecast funding needs and tax implications to assure strong Tong -term financial stability.
• Provide adequate funds to meet necessary technology upgrades and maintenance.
• Continue policy of not using fund balances for operating expenses.
• Recognize and award employees that help the city save money.
• Create program budgeting to better link revenues to services and identify program costs.
We are maintaining basic city services in 2000. We analyzed the Assessing department and the Police
Communications Center in 1999. We allocate building maintenance expenditures and equipment
expenditures to more accurately reflect program costs. We will continue to work on cost allocations for
all programs and funds.
Attached is a forecast of general fund expenditures and revenues for the next two years with the
associated tax levy's to achieve those levels.
The assumptions for the forecasts made are as follows:
Current services will be maintained no elimination or additions to services.
r A 3.28% over 2000 budget, and 2.5% increase in salaries and employee benefits each year
respectively. The 3.28% makes up for the shortage budgeted for salaries in 2000. The contracts
were settled for various amounts, none of which were 2.5 %, which is where the 2000 budget is at.
Approximately a 5°' and 1% increase in materials, supplies and services each year respectively.
The large increase in 2001 includes possible lease payments to the !IRA for the public works
building project.
Approximately a 1% o increase in charges to special revenue funds, capital improvement funds and
enterprise funds.
The Shady Oak Beach payment is included in the general fund for 2001.
Approximately a 2.25% and 2.5° o increase in levy each year, respectively.
Approximately a 1 °4) increase in intergovernmental revenues each year, respectively.
Approximately a 1% increase in fines, permits and fees each year, respectively.
A `f;100,000 decrease in interest earnings for 2001 budget to accurately reflect actual earnings
potential.
Approximately a 6% increase in charges for services in 2001 hudget to accurately reflect historical
collections.
Other revenues would remain relatively constant except transfer in from other funds is eliminated.
,-'\n average increase in the assessed market value of property of 5 %.
The city budgeted an additional $60,000 to cover its proposed lease payment to the I1R1. for
issueing bonds to build the public works building.
The city is also in the process of looking at space needs for the police and fire departments which, if
implemented will have an effect on the overall budget and levy for 2001.
Another issue which has risen is an increase in the time line for replacing (he radio dispatch system
for police and fire. Hennepin County has accelerated its proposed change to 800 mhz to April of
2001. We had not anticipated replacing our system until 2003 or 2004. The county does not
anticipate us needing to change in 2001 but it is unknown how long before a change is nessecary in
order to continue communications \Vith 1Tennepin.
The city is also in the process of a pay equity evaluation which could impact the budget in 2001.
'Hie 2001 goals are to start considering the advantages and disadvantages of a bi- annual hudget to
replace the annual budget process. This may allow For more strategic planning and goal setting
between hudget years. The disadvantage is a longer period for major changes to a given budget.
Lori Yager
Finance Director
1
Overview
Attached is a sample of the program budgets, which were implemented in 2000. This will be the
level the council will review program budgets. It is also anticipated that we will have full
descriptions of projects and their objectives.
Please review the attached schedules and bring any ideas or comments you may have to the work
session.
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GENL FUND
SOURCE
Current Revenues
CURRENT PROPERTY TAX
INTERGOVERNMENTAL REVENUE
LICENSE, PERMITS 8L FINES
INTEREST EARNINGS
CHARGES FOR CURRENT SERVICES
OTHER REVENUES
NON REVENUE RECEIPTS
NET TOTAL REVENUES
OTHER FINANCING SOURCES
TOTAL REVENUES
OBJECTIVE
Current Expenses
SALARIES AND EMPLOYEE BENEFITS
MATERIALS, SUPPLIES AND SERVICES
CAPITAL OUTLAY
CAPITAL IMPROVEMENTS
TOTAL
LESS EXPENDITURES CHARGED TO
OTHER ACTIVITIES
NET TOTAL
OTHER FINANCING USES
TOTAL EXPENDITURES
CHANGE IN FUND BALANCE
1999
ACTUAL
$ 4,049,173
2 ,067,882
596,740
160,942
203,233
32,402
37,000
7,147,372
1999
ACTUAL
FUND 101
$ 5,188,507 $ 5,537,837 $
2,083,124 2,448,804
554,250 650,927
100,000 25,000
$ 7,925.881 $ 8,662,568 $
REVENUES
COMPARATIVE ANALYSIS BY SOURCE
2000
BUDGET
$ 4,364,756
2,089,288
458,900
297,089
95,248
45,486
37,370
2000
BUDGET
2000
PROJECTION
$ 4,299,173
2,089,288
458,900
170,000
150,000
40,000
37,370
2000
PROJECTION
5,53 8,432
2,338,452
657,796
25,000
8,559,680
2001
BUDGET
2002
BUDGET
5 4,514.199 $ 4.636,989
2,109,942 2,1 19,942
463,000 468,000
195,000 204,334
154,500 159,135
45,486 45,486
37,370 37,370
7,519,497 7,671,256
7,388,137 7,244,731
30,586
$ 7,147,372 $ 7,418,723 $ 7,244,731 $ 7,519,497 $ 7.671,256
EXPENDITURES
COMPARATIVE ANALYSIS BY OBJECTIVE
2001
BUDGET
2002
BUDGET
$ 5,719,592 $ 5,862,582
2,455,375 2,467,651
550,927 556,436
50,000 60,000
$ 8,775,894 $ 8,946,670
(824.366) (1.255,204) (1,255,204) (1,267,756) (1,286,772)
7,101,515 7,407,364 7,304,476 7,508,138 7,659,897
3,103 11,359 6,000 11.359 11,359
5 7,104,618 $ 7,418,723 $ 7,310,476 5 7,519,497 $ 7,671,256
$ 42,754 $ - $ (65,745) $ 0 $ (0)
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Committee Liason
Zoning Activities and Enforcement
Sign or Fence Permits
Miscellaneous Planning
Community Development Activity
TOTAL
DEPARTMENT - COMMUNITY DEVELOPMENT FUND 101
CATEGORY
PROGRAM SUMMARY
Projected Proposed
Actual Budget Budget Percent
2000 2000 2001 Change
PROGRAM EXPENDITURES
Committee Liason 7.381 $ 9,430 $ 8.082 - 14.29%
Zoning Activities and Enforcement 63,819 61,789 69,402 12.32%
Sign or Fence Permits 11,676 13,149 13.761 4.65%
Miscellaneous Planning 21,323 23,341 24,649 5.60%
Community Development Activity 23,860 28,690 30,871 7.60%
TOTAL 142,122 136,399 146,765 7.60%
PROGRAM REVENUES
Committee Liason
Zoning Activities and Enforcement 2,139 3,000 2,450 - 18.33%
Sign or Fence Permits 1,619 1,000 1,500 50.00%
Miscellaneous Planning 8 - i 0
Community Development Activity 35,677 30,586 36,000 17.70%
TOTAL 39.443 34,586 39,960 15.54%
NET COST (RETURN) 102,679 $ 101,813
106,805 4.90%
PERMANENT STAFFING
CAPITAL OUTLAY
0.05
0.85
0.20
0.35
0.40
1.85
0.05
0.85
0.20
0.35
0.40
1.85
0.05
0.85
0.20
0.35
0.40
1.85
PROGRAMS
CA1EG )RY
CITY PROGR.AIVI EXPF NDITURF BUDGETS
Amended 4130100 Percent
Budget Actual of
2000 2000 Budget
Unallocated expenditures S 111,854 $ 46,305 41.4%
City Council 93,196 31,792 34.1%
Health and Welfare 6,850 239 3.5%
Administration 134,437 41,698 31.0%
Legislation 15,807 4,164 263%
Agenda 50.339 14,391 28.6%
Personnel 27.283 12.707 46.6%
Capital Improvement Plan 25,985 8,322 32.0%
Wellness 4,217 1,449 34.4%
Information Services 71,628 23,626 33.0%
Benefit Administration 15,515 V 3,967 25.6%
Budget 17,697 3,831 21.6%
Cash Management 7.656 (15) - 0.2°x0
Debt Management (378)
General Accounting 48.998 20,903 42.7%
Payroll 3 12,333 36.4`%n
Risk Management 5,415 1,240 22.9%
T.I.F. Administration (292)
l Jtility Billing 162
Legal 121.020 20,447 16.9%
City flail Cleaning 6.10.8 (23 I) - 3.7%
City Hall Maintenance 159,835 8,649 5.4%
Activity { Comm unity 1 se 52,250 17,428 33.=1`!•6
Senior Activities 1()2,197 39,062 38.2%
Teen Programs 10,415 1,388 13.3%
Activity Center Maintenance 64,501 16,362 25.4%
Receptionist 14,715 14,644 32.7%
Assessing information 86,397 27,145 31.4%
I lomestead Informal ion 32.594 10,833 33.
Property Valuation 85.060 2 26.7%
Special Assessments 19.981 6,039 30.2%
Building Code Inspections 109,35 l 51,062 46.7%
Fire inspections 34,221 8,150 2 3.8%
Heating and Plumbing Inspections 68,807 17,389 2S3?
Housing Inspections 45.738 10,027 21.9%
Restaurant /Hotel Inspections 33.976 11,289 33.'
Miscellaneous Inspections 74.221 I8,692 25.2%
Charter & Council Administration 16.100 3,89 24.2%
Licensing 8,532 989 11.6%
Purchasing 9,440 6,285 66.6%
Records Management 7.951 € ,707 21.5%
Elections 35,672 2 ,380 6.7°6
Police Administration - 12,125
Patrol Operations 1,598,520 456,026 28.5%
Property Room Management 46,542 15,248 32.8%
!Teat Team 57,357 17,412 30.4%
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PROGRAMS
Police Reserves
investigations
Metro Drug Task Force
Pawn Shop Management
Police Outreach
Chemical Health Commission
Police Counter Act
Public Safety Answering Point
Reception & Records Checking
Systems & Records Management
Emergency Medical Service
Fire Prevention
Fire Suppression
Emergency Preparedness
Public Works Building Maintenanc
Equipment Services
Public Works Administration
Engineering Services
Streets and Alleys
Street Cleaning
Snow and Ice Removal
Seal Coat Zone
Sidewalk Repair
Traffic Signs and Signals
Street Lighting
Mall Maintenance
Parks
Tree Service
Adult Recreation
Youth Recreation
Various Recreation Programs
Shady Oak Beach
Committee Liason
Zoning Acitivities & Enforcement
Sign or Fence Permits
Miscellaneous Planning
Community Development Activity
Total General Fund
CITY PROGRAM EXPENDITURE BUDGETS
Amended
Budget
2000
$ 24,654
337,437
75,091
22,693
78,855
8,048
11,530
264,766
92,912
270,378
71,106
84,954
432,019
19,292
$ 2,
29,991
98,263
239,708
37,682
144,148
163,053
34,041
116,050
154,584
507,684
132,637
42,975
64,975
84,840
44,310
9,430
61,789
13,148
23,340
28,689
4/30/00
Actual
2000
7,101
105,893
26,641
6,623
23,032
1,874
3,169
97,937
30,017
87,397
11,825
25,002
115,415
127
641
If 14,338
-30
27,985
93,849
27,028
31,464
3,473
1,790
31,500
29,388
2,740
161,947
30,466
29,
29,275
78,013
11,710
1,641
21,859
3,510
7,002
7,829
(Bold budget numbers have been amended from the original 2000 budget.)
Percent
of
Budget
28.8%
31.4%
35.5%
29.2%
29.2%
23.3%
27.5%
37.0%
32.3%
32.3%
16.6%
29.4%
26.7%
0.7%
28.5%
47.8%
28.5%
39.2%
71.7%
21.8%
2.1%
5.3%
27.1%
19.0%
31.9%
23.0%
68.1%
45.1%
92.0%
26.4%
17.4%
35.4%
26.7%
30.0%
27.3%
$ 7,429,723 $ 2,332,352 31.4%
Revenues
Expenditures
CITY OF HOPKINS
2000 FINANCIAL REPORT - APRIL
GENERAL FUND
Year To Date 4 Months 33% of Year
Percentage Percentage
Received/ Received/
Expended Expended
2000 Budget Year to Date 2000
Property Taxes $ 4,364,756 $ 1,447,584 33.17% 33.15%
Intergovernmental Revenue 2,089,288 633,590 30.33% 28.72%
Licenses and Permits 357,400 218,655 61.18% 79.04%
Fines and Forfeitures 101,500 30,190 29.74% 27.68%
Interest Earnings 297,089 39,518 13.30% 32.62%
Charges for Services 132,618 51,010 38.46% 10.22%
Other Miscellaneous 45,486 43,124 94.81% 1.41%
Operating Transfer In 30,586 0 0.00% 0.00%
Total $ 7,418,723 $ 2,463,671 33.21% 33.36%
MayarlCouncii $ 93,196 $ 31,792 34.11% 31.26%
Health & Welfare 6,850 239 3.49% 2 59%
Administrative Services 329,696 106,357 32.26% 30.55%
Finance 129,151 41,751 32.33% 39.14%
Legai 121,020 20,447 16.90% 22.79%
Municipal Building 166,033 8,418 5.07% 4.05%
Activity Center 229,363 74,240 32.37% 30.99%
Community Services 712,819 213,248 29.92% 26.49%
Police 2,888,783 890,495 30.83% 32.95%
Fire 588,079 152,242 25.89% 24.99%
Emergency Preparedness 19,292 127 0.66% 29.02%
Public Works 1,660,091 456,579 27.50% 30.18%
Recreation 237,100 148,273 62.54% 6.02%
Planning & Economic Dev. 136,396 41,841 30.68% 40.74%
Unallocated 100.495 46,305 46.08% 31.40%
Transfers 11,359 0 0.00% 0.00%
Total $ 7,429,723 $ 2,232,354 30,05% 29.46%
Sources (Uses) of Fund
Balance (11,000) $23t317
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Revenue
Expense
Operating Income(Loss)
Non - Operating
Revenue (Expense)
Net Income (Loss)
Capital Outlay
Cash Balance 4/30/00
Cash Balance 4/30/99
Cash Variance
Explanation of Cash
Variances
Equip. Refuse/ Storm Pavilion/ Art
Replc. Water Sewer Bulk Sewer Ice Arena Center
$ 162,648 $ 206,363 $ 445,595 $ 178,299 $ 213,869 $ 109,386 $ 63,498
6,455 194,935 388,367 154,391 33,773 83,275 99,223
156,193 11,428 57,228 23,908 180,096 26,111 (35,725)
(72,303) 2,015,846 22,966 2,264 (112,633) (16,440) (47,438)
$ 83,890
(220,746)
$ 1,245,745
$ 1,196, 844
48,901
Operating
gains
$ 2,027,274
(261,015)
$ 2,350,720
$ 476,890
1,873,830
Water
Revenue
Bond
Proceeds
CITY OF HOPKINS
2000 FINANCIAL REPORT - APRIL
PROPRIETARY FUNDS
Year to Date
$ 80,194
(5,942)
$ 1,557,036
$ 859,519
697,517
Pay off from
Storm Sewer
Fund and
operating
gains
$
$
$
26,172
(440)
585,457
703,023
(117,566)
Purchase
of truck
$ 67,463 $ 9,671 $ (83,163)
(31,545) (4,503) 0
$ 745,773 $ 86,612 $ 126,309
$ (111,573) $ 75,395 $ 251,218
857,346 11,217 (124,909)
Storm Sewer Operating Operating
Revenue gains losses and
Bond payment of
Proceeds debt
Fund
General Fund
Economic Development Fund
Housing Rehab Fund
Parking Fund
Cable TV Fund
Depot Coffee House Fund
Tax Increment 1.1 Fund
Tax Increment 1.2 Fund
Tax Increment 2.1 Fund
Tax Increment 2 7 Fund
Tax Increment 2.8 Fund
Tax Increment 2.9 Fund
Park Improvement Fund
Municipal State Aid Construction Fund
P.I.R. Construction Fund
CITY OF HOPKINS
2000 FINANCIAL REPORT - APRIL
STATUS OF RESERVES
Beginning
Balance Balance Dollar
1/1/00 4/30/00 Difference
Balance
4/30/99
$ 2,877,739 $ 3,108,831 $ 231,092 $ 3,090,853
3,711,150 3,705,881 (5,269) 3,753,096
1,377,301 1,297,064 (80,237) 746,552
347,268 352,344 5,076 385,192
290,565 260,001 (30,564) 230,696
16,116 16,519 403 12,324
1,186,171 1,599,201 413,030 1,309,646
333,474 352,427 18,953 258,300
229,784 363,822 134,038 286,464
157,936 190,149 32,213 150,494
21,470 31,751 10,281 15,695
34,031 61,562 27,531 9,483
35,201 46,508 11,307 28,561
2,160,989 2,245,470 84,481 2,118,706
1,391,901 1,257,037 (134,864) 735,545
CASH AND INVESTMENTS - ALL FUNDS
4/30/00 4413.4109
Total City Cash & Investments $ 15,442,901 $ 10,250,220 (Bond issue's in 1999 and 2000)
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Revenues
Total
Expenditures
Total
Sources (Uses) of Fund Balance
CITY OF HOPKINS
FOUR YEAR COMPARATIVE FINANCIAL REPORT
FOR THE PERIOD ENDING APRIL 30, 19XX
GENERAL FUND
2000 1999 1998 1997
Property Taxes $1,447,584 1,363,600 $1,139,320 $1,120,867
Intergovernmental Revenue 633,590 599,253 628,370 613,370
Licenses and Permits 218,655 268,733 188,071 185,232
Fines and Forfeitures 30,190 25,190 26,879 20,441
Interest 39,518 129,642 28,629 41,947
Charges for Services 51,010 3,139 19,877 30,154
Other Miscellaneous 43,124 942 53,663 7,652
Operating Transfers In 0 0 0 0
$2,463,671 $2,390,499
$2,232,354 $2,111,682
$231,317 $278,817
$2,084,809 $2,019,663
Mayor /Council $31,792 $28,454 $31,983 $30,486
Health & Welfare 239 506 219 192
City Manager 106,357 79,893 87,914 78,836
Finance 41,751 43,388 30,409 37,894
Legal 20,447 27,119 28,518 24,828
Municipal Building 8,418 3,048 24,795 36,607
Activity Center 74,240 65,455 66,897 62,056
Community Services 213,248 182,805 182,805 190,415
Police 890,495 915,419 806,220 504,566
Fire 152,242 141,435 117,088 97,835
Emergency Preparedness 127 2,673 0 0
Public Works 456,579 496,642 432,840 452,699
Recreation 148,273 16,711 37,345 48,085
Planning & Economic Dev. 41,841 57,894 42,126 41,403
Unallocated 46,305 50,240 64,657 7,674
Transfers 0 0 265 844
$1,954,081 $1,614,420
$130,728 $405,243
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x1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
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Gen ral Fund Exp nditur Comparison f r P riod Ending April 30, 2000 and 1999
cie .ca a ` . "
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019991
01998