VII.4. CR 2025-098 Amend 2025 General Fund Budget_full item for packet CITY OF HOPKINS
City Council Report 2025-098
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Mike Mornson, City Manager
Nick Bishop, Finance Director
Date: June 3, 2025
Subject: Amend 2025 General Fund Budget for Full Time Firefighter Positions
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Amend the 2025 General Fund Budget and Authorize an Expenditure
Increase of $88,000.
OVERVIEW
The proposed budget amendment would allow for the hiring of two additional full-time
firefighters beginning on July 1st for an estimated cost of $130,000. The new positions
would reduce the use of hourly paid on call or part-time firefighters for an estimated
savings of $42,000. The City’s General Fund expenditure budget would be set at
$20,008,490 or an $88,000 from the original budget adopted on December 2, 2024.
Fund Balance
The City’s Fund Balance on December 31, 2025 is projected to be 37.56% of operating
expenditures or 4.44% less than the City’s policy of 42%. The policy states that fund
balance is maintained for cash flow needs and to accommodate emergency
contingency concerns.
City staff is currently reviewing the Fund Balance policy for possible changes. The
Minnesota Office of the State Auditor recommends a fund balance percentage of 35% -
50%. The following chart shows other City Policies:
City Percentage Basis
Minnetonka 30-50%Expenditures
Shakopee 35-50%Expenditures
New Brighton 35%-Minimum Expenditures
Edina 42-47%Tax Revenue
Hopkins 42%Expenditures
Golden Valley 60%Expenditures
Finance Department
Administration Department
Cost Recovery
Currently, full time firefighters act as Fire Marshall and rental inspectors. The related
fees were reviewed internally and increased based on actual costs at the November 12,
2024 Council Meeting. The budgeted revenue for Fire Permits increased from $6,000 to
$12,000. The budgeted revenue from the Rental Inspection program increased from
$161,000 to $190,500.
SUPPORTING INFORMATION
•2025 General Fund Budget
•Memo from Chief Specken
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2025
Proposed Amendment
June 3, 2025
Department
Adopted
2024 Budget
Adopted
2025 Budget
Proposed
2025 budget
% Increase
(Decrease)
Property Taxes 14,511,326 15,446,075 15,446,075 6.44%
Intergovernmental Revenue
Local Government Aid 1,081,012 1,084,775 1,084,775
Intergovernmental Revenue - Other 797,000 810,000 810,000
Total Intergovernmental Revenue 1,878,012 1,894,775 1,894,775 0.89%
Licenses, Permits & Fines
Court Fines & Penalties 176,000 176,000 176,000
Building Permits & Inspections 563,000 693,500 693,500
Inspection Fines & Citations 3,000 3,000 3,000
City Clerk - Business Licenses 8,900 12,400 12,400
PD - Liquor, Animal Licenses & Penalties 101,800 110,150 110,150
Fire - Licenses & Permits 4,000 4,000 4,000
Public Works - Licenses & Permits 19,615 19,615 19,615
Planning & Zoning - Licenses & Permits 2,000 4,000 4,000
Total Licenses, Permits & Fines 878,315 1,022,665 1,022,665 16.43%
Charges for Service
Finance Department 8,500 8,600 8,600
Inspections 175,450 274,775 274,775
Police 35,000 35,000 35,000
Fire 10,500 10,500 10,500
Public Works 3,150 3,000 3,000
Activity Center 118,500 154,500 154,500
Planning & Zoning - 16,000 16,000
Total Charges for Service 351,100 502,375 502,375 43.09%
Miscellaneous Revenue
Franchise Fees 346,200 580,600 580,600
Miscellaneous 25,250 45,000 45,000
Finance Department 3,000 3,000 3,000
Police 500 500 500
Fire 3,500 3,500 3,500
Public Works 10,600 8,000 8,000
Activity Center 14,000 14,000 14,000
Total Miscellaneous 403,050 654,600 654,600 62.41%
Total Revenues 18,021,803 19,520,490 19,520,490 8.32%
City of Hopkins
General Fund Expenditure Budget
For the Year Ending December 31, 2025
Proposed Amendment
June 3, 2025
Department
Adopted
2024 Budget
Adopted
2025 Budget
Proposed
2025 budget
% Increase
(Decrease)
City Council 133,033 156,598 156,598 17.71%
Administrative Services 536,656 661,290 661,290 23.22%
Communications - 240,000 240,000 100.00%
Information Technology 644,926 718,226 718,226 11.37%
Diversity, Equity & Inclusion 133,530 107,000 107,000 -19.87%
Finance 732,254 616,129 616,129 -15.86%
Legal 250,000 265,000 265,000 6.00%
Municipal Building 404,690 407,462 407,462 0.68%
City Clerk 339,242 327,542 327,542 -3.45%
Inspections 1,208,270 1,265,343 1,265,343 4.72%
Police 7,185,841 7,519,164 7,519,164 4.64%
Fire 1,709,014 1,982,178 2,082,178 21.84%
Public Works 3,858,812 4,289,317 4,289,317 11.16%
Recreation 276,441 276,735 276,735 0.11%
Activity Center 554,334 609,694 609,694 9.99%
Planning & Zoning 196,248 247,455 247,455 26.09%
Community Development 129,312 125,357 125,357 -3.06%
Tuition Reimbursement 19,200 19,200 19,200 0.00%
Contingency 50,000 25,000 25,000 -50.00%
Transfer to Depot/ACE Program 60,000 61,800 61,800 3.00%
Total Expenditures 18,421,803 19,920,490 20,020,490 8.68%
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Dale Specken, Fire Chief
Date: June 3, 2025
Subject: Fire Department Staffing Request
_____________________________________________________________________
PURPOSE
To provide background on current staffing capacity challenges of the Hopkins Fire
Department and request the City Council amend the 2025 General Fund Budget to hire
two additional full time firefighters.
INFORMATION
The Hopkins Fire Department (HFD) plays a vital role in public safety, delivering fire
suppression, emergency medical services, code enforcement, fire prevention, and
community outreach.
Currently, HFD faces significant staffing challenges. While authorized for 42 paid-on-call
(POC) firefighters, the department has only 25 active POC members. High turnover,
driven by competition from nearby departments offering full-time roles and difficulty
recruiting and retaining eligible POC firefighters, has exacerbated staffing shortages. In
2024 alone, POC members contributed over 13,600 hours, yet approximately 320 shift
hours remain uncovered monthly so far this year. Full-time staff are covering additional
shifts, leading to excessive overtime and elevated burnout risks, including among
leadership.
To address this, HFD is requesting funding for two additional full-time firefighters. This
would help ensure consistent 24-hour coverage of qualified personnel, reduce staff
burnout, and enhance emergency response capabilities maintaining HFD’s critical 4-5
minute response time. The request aligns with recommendations from the 2023 Raftelis
Staffing Study and provides a sustainable path forward. Alternative approaches—such
as increasing POC staffing, returning to an all-call model, or relying on mutual aid—
were evaluated and rejected due their inefficiency and risk. The proposal is a proactive
measure to safeguard community safety and departmental resilience.
Fire Department