VII.1. Resolution Approving the Proposed 2026 Tax Levy, Setting Debt Service Levels at Amounts Under Those Required in the Bond Documents; Bishop
CITY OF HOPKINS
City Council Report 2025-138
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: September 16, 2025
Subject: Approve Proposed 2026 Levy, Proposed 2026 General Fund Budget and
Set Budget Meeting Date
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve Resolution 2025-052 Approving the Proposed 2026 Tax Levy,
Setting Debt Service Levels at Amounts Under Those Required in the Bond Documents,
Approving the Proposed 2026 Budget and Setting the Budget Meeting Date.
OVERVIEW
The City is required to certify a proposed tax levy and submit it to Hennepin County by
September 30th. This will be the maximum levy for 2026 and can only be reduced. The
certified levy amount is also used for truth in taxation notices.
The City must hold a public hearing on the budget between November 25th and
December 28th. The proposed date of Monday, December 1st would allow time to
consider comments heard at the public hearing before passing the final tax levy and
budget.
SUPPORTING INFORMATION
• Overview of Preliminary Tax Levy and General Fund Budget
• 2026 Preliminary General Fund Budget
• 2026 Tax Levy Summary
• Resolution 2025-052
Finance Department
Overview of Preliminary Tax Levy and General Fund Budget
The City Council reviewed and discussed the 2026 Budget and Tax Levy on August 4th and
September 2nd. The initial budget, including all staff requests, resulted in a tax levy increase
of $4.3 million or 20.7%. Staff made reductions and has presented tax levy scenarios with a
9.70%, 7.98%, 5.97% and 4.00% levy increases when compared to 2025.
The City Council gave input and indicated that a 7.98% increase would be acceptable as a
preliminary levy. Council directed staff to continue to look for additional reductions before
the final levy. Council also requested that two items proposed as reductions be included in
the preliminary levy (Hopkins Climate Solutions Fund Grant Program for $125,000 and
Community Connectors for $20,000).
Proposed Budget Reductions to reduce levy from 20.7% increase to 7.98% Increase
This proposed scenario has minimal layoffs; however it does rely heavily on delaying
equipment purchases and capital improvements to later years.
• Reduce Equipment Replacement Requests - $860,000
o Armored Pick UP Truck
o 1 Ton Traffic Boom
o 2 Police Marked Patrol Vehicles
o Parking Enforcement Vehicle
o Camera Trailer
o Squad Car Rifles
o Police Gym Treadmill
o Public Works Supervisor Vehicle
o Tire Balancer
o Permitting and Licensing Software
• Reduce Capital Improvement Requests - $765,000
o City Street Lighting Upgrades
o City Hall/Police Station Roof Replacement
o Mainstreet Banner Pole Installation
o Arts Center Restroom Remodel
o Pavilion Roof Replacement
o Pavilion Warming House Blinds
o Excelsior Fencing Project
o Bathroom Project at Activity Center
• Eliminate New Employee Requests - $310,000
o HR Technician
o IT Technician
o Firefighter
• Pay Burnes Park debt with Franchise Fees - $150,000
• Eliminate Request for Class and Compensation Study - $100,000
• Eliminate Public Works Trainee Position - $80,000
• Reduce Diversity, Equity & Inclusion - $55,000
• Fund ACE Program through EDA Levy - $50,000
• Reduce Police Minor Equipment Budget - $50,000
• Reductions to Travel and Training (Staff and Council) - $50,000
• End Contract with Lockridge Grindal Nauen for Lobbyist Services - $40,000
• Reduce Public Works Supplies Budget - $40,000
• Partially Fund the Arts Center through Economic Development Fund - $20,000
o Art Center would be funded by a tax levy ($380,000), Economic Development
Transfers ($55,000)
City of Hopkins
General Fund Revenue Budget
For the Year Ending December 31, 2026
Preliminary
September 16, 2025
Department
Adopted
2025 Budget
Revised 2025
budget
Preliminary
2026 budget
% Increase
(Decrease)
Property Taxes 15,406,075 15,406,075 17,456,186 13.31%
Intergovernmental Revenue
Local Government Aid 1,084,775 1,084,775 1,091,250
Intergovernmental Revenue - Other 810,000 810,000 890,000
Total Intergovernmental Revenue 1,894,775 1,894,775 1,981,250 4.56%
Licenses, Permits & Fines
Court Fines & Penalties 176,000 176,000 176,000
Building Permits & Inspections 693,500 693,500 647,000
Inspection Fines & Citations 3,000 3,000 3,000
City Clerk - Business Licenses 12,400 12,400 11,000
PD - Liquor, Animal Licenses & Penalties 110,150 110,150 121,225
Fire - Licenses & Permits 4,000 4,000 4,500
Public Works - Licenses & Permits 19,615 19,615 1,215
Planning & Zoning - Licenses & Permits 4,000 4,000 4,000
Total Licenses, Permits & Fines 1,022,665 1,022,665 967,940 -5.35%
Charges for Service
Finance Department 8,600 8,600 8,500
Inspections 274,775 274,775 219,500
Police 35,000 35,000 35,000
Fire 10,500 10,500 10,500
Public Works 3,000 3,000 45,000
Activity Center 154,500 154,500 175,000
Planning & Zoning 16,000 16,000 11,000
Total Charges for Service 502,375 502,375 504,500 0.42%
Miscellaneous Revenue
Franchise Fees 620,600 620,600 621,500
Miscellaneous 45,000 45,000 100,000
Finance Department 3,000 3,000 3,000
Police 500 500 500
Fire 3,500 3,500 3,500
Public Works 8,000 8,000 8,000
Activity Center 14,000 14,000 14,000
Total Miscellaneous 694,600 694,600 750,500 8.05%
Total Revenues 19,520,490 19,520,490 21,660,376 10.96%
City of Hopkins
General Fund Expenditure Budget
For the Year Ending December 31, 2026
Preliminary
September 16, 2025
Department
Adopted
2025 Budget
Revised 2025
Budget
Preliminary
2026 budget
% Increase
(Decrease)
City Council 156,598 156,598 138,698 -11.43%
Administrative Services 661,290 661,290 724,701 9.59%
Communications 240,000 240,000 228,894 -4.63%
Information Technology 718,226 718,226 764,859 6.49%
Diversity, Equity & Inclusion 107,000 107,000 58,000 -45.79%
Finance 616,129 616,129 653,233 6.02%
Legal 265,000 265,000 270,000 1.89%
Municipal Building 407,462 407,462 390,992 -4.04%
City Clerk 327,542 327,542 385,448 17.68%
Inspections 1,265,343 1,265,343 1,260,826 -0.36%
Police 7,519,164 7,519,164 8,357,410 11.15%
Fire 1,982,178 2,082,178 2,557,984 22.85%
Public Works 4,289,317 4,289,317 4,523,204 5.45%
Recreation 276,735 276,735 287,077 3.74%
Activity Center 609,694 609,694 678,367 11.26%
Planning & Zoning 247,455 247,455 221,943 -10.31%
Community Development 125,357 125,357 114,540 -8.63%
Tuition Reimbursement 19,200 19,200 19,200 0.00%
Contingency 25,000 25,000 25,000 0.00%
Transfer to Depot/ACE Program 61,800 61,800 - -100.00%
Total Expenditures 19,920,490 20,020,490 21,660,376 8.19%
City of Hopkins
Tax Levy
For the Year Ending December 31, 2026
Preliminary
September 16, 2025
Actual Preliminary % Increase
Purpose FY2025 FY 2026 (Decrease)
General Operations
General Fund 15,321,075 17,371,186 13.38%
Capital Levy 445,000 262,500 -41.01%
Arts Center 380,000 380,000 0.00%
Pavilion Fund 448,500 431,000 -3.90%
Equipment Replacement 180,000 - -100.00%
Permanent Improvement 50,000 - -100.00%
Parking 75,000 100,000 33.33%
Total General Operations 16,899,575 18,544,686 9.73%
Debt Levy 3,748,530 3,750,127 0.04%
Total Levy 20,648,105 22,294,813 7.98%
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2025-052
APPROVING THE PROPOSED 2026 TAX LEVY, SETTING DEBT SERVICE
LEVELS AT LEVELS UNDER THOSE REQUIRED IN THE BOND
DOCUMENTS, APPROVING THE PROPOSED 2026 BUDGET,
AND SETTING THE BUDGET MEETING DATE
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby approves the following sums be levied for 2026 upon the taxable property in the
City of Hopkins, for the following purposes:
General Levy
General $18,544,686
Special Levies
Debt Levies
2014A GO Street Reconstruction Bonds (3011A) 68,000
2014A GO Improvement Bonds (3011B) 50,000
2015B GO Tax Abatement (3013) 125,000
2015A GO Street Reconstruction Bonds (3014) 260,000
2016A GO Improvement Bonds (3017) 120,000
2016B GO Tax Abatement Bonds (3018) 22,000
2017A GO Street Reconstruction Bonds (3021) 960,000
2017B GO Tax Abatement Bonds (3022A) 9,700
2018A GO Street Reconstruction Bonds (3024A) 100,000
2018A GO Improvement Bonds (3024B) 300,000
2018A GO Equipment Certificates (3024C) 50,998
2019A GO Street Reconstruction Bonds (3025A) 92,000
2019A GO Improvement Bonds (3025B) 228,892
2019A GO Capital Improvement Bonds (3025D) 40,000
2020A GO Improvement Bonds (3027B) 143,000
2020A GO Street Reconstruction Bonds (3027D) 16,125
2020B GO Refunding Bonds (3029) 268,167
2021A GO Improvement Bonds (3030A) 199,620
2021A GO Street Reconstruction Bonds (3030C) 16,925
2022A GO Equipment Certificates (3031A) 125,213
2022A GO Improvement Bonds (3031B) 202,462
2023A GO Temporary Improvement Bonds (3032) 261,832
2024A GO Bonds 90,193
Subtotal Special Levies $3,750,127
Total Levy $22,294,813
That based upon staff analysis of special assessments currently levied for Permanent
Improvement Bonds, alternative revenue sources for the Capital Improvement Bonds
and Equipment Certificates, and available reserves within all debt service funds listed
below, that the debt service levies for 2025 for the following issues be levied at amounts
less than provided by the bond covenants.
Bond Issue
2014A GO Street Reconstruction Bonds (3011A) 68,000
2015A GO Street Reconstruction Bonds (3014) 260,000
2016A GO Improvement Bonds (3017) 120,000
2017A GO Street Reconstruction Bonds (3021) 960,000
2017B GO Tax Abatement Bonds (3022A) 9,700
2018B GO Tax Abatement (3023) -
2018A GO Street Reconstruction Bonds (3024A) 100,000
2018A GO Equipment Certificates (3024C) 50,998
2019A GO Street Reconstruction Bonds (3025A) 92,000
2019A GO Improvement Bonds (3025B) 228,892
2019A GO Capital Improvement Bonds (3025D) 40,000
2020A GO Equipment Certificates (3027A) -
That the Proposed 2026 General Fund Budget be set at $21,660,376
That the budget meeting to discuss the 2026 budget and tax levy be set for December
1, 2025 at 6:30 PM in the City Council Chambers.
BE IT FURTHER RESOLVED that the City Clerk is hereby ordered and directed to
transmit a certified copy of this resolution to the County Auditor of Hennepin County,
Minnesota
Adopted by the City Council of the City of Hopkins this 16th day of September, 2025.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
____________________
Amy Domeier, City Clerk