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Memo HCP Budget RequestAttached is a copy of HCP's 1992 budget and funding request. Outlined below is a brief summary of the information provided by HCP. A. 1992 Funding Request -- $10,000. B. 1992 Total Projected Expenditures -- $114,988.75. Proposed expenditures for 1991 were $132,724. The major scheduled events break down as follows: DATE: November 20, 1991 TO: Mayor and City Council FROM: Paul T. Steinman, Community Development Specialist SUBJECT: 1992 HCP Budget /Funding Request 1992 1991 Heritage Days $17,635 $17,100 Mainstreet Days $14,287 $21,455 o Market Place $14,000 NA O Awards Breakfast $ 1,200 $ 1,000 Music in the Park $ 4,380 $ 5,382 o Membership Drive $ 2,188 $ 1,000 C. 1992 Total Projected Revenues -- $118,639. Proposed revenues for 1991 were $133,593. 1992 revenues are projected to exceed expenditures by $3,650.25. A breakdown of the proposed revenue sources are as follows: City of Hopkins o Raspberry Festival CITY OF HOPKINS MEMORANDUM 1992 $10,000 $ 6,000 1991 $10,000 $ 7,000 o J.C.'s o Memberships $12,000 $12,000 Business & Events Guide $ 3,500 $24,000 Events income $30,875 $53,178 D. Proposed Events The following events are proposed for 1992: Mainstreet Days Heritage Days Music in the Park Silent Auction Marketplace 1992 1991 $56,264 $56,889 The following events were included in 1991's budget but are no longer a part of the proposed 1992 budget: Raspberry Festival Guatemala Christmas in the Park Golden Egg Hunt Some of the activities within Mainstreet Days and Heritage Days have been discontinued in the 1992 proposed budget. This was due to the expense of the activities, and HCP's inability to continue funding activities which don't produce any income. E. Proposed Use of City Funds The attached letter from HCP does not specify how the City funds are proposed to be used In the past HCP, at the request of the City, proposed to use City funding for activities rather than operating costs. F. Source of City Funds The City's proposed 1992 budget contains a line item of $15,000 in the economic development account ( 204) for Hopkins Community Promotions. The economic development account has been used in the past to fund similar requests made by HCP. G. Payment Schedule In 1991, the City of Hopkins made a total of two payments to HCP, with the first payment being made in January, and the second and final payment being made in July. The attached letter from HCP does not specify the method of payment. It should be noted however, that prior to making two payments in one year, the City made payments to HCP on a quarterly basis. At the request of the City, the quarterly payment method was changed to the semi- annual payment method to ease the workload on the City's finance department associated with fulfilling this request. HCP also felt this payment method would help their cash flow situation. H. Issues to Be Considered Items which the City Council may wish to specifically discuss with HCP include: o Proposed use of City funds. Since the proposed use of City funds was not specified in the 1992 proposed budget, staff recommends this item be discussed with HCP. In the past the City has requested its funds be used specifically for events, rather than operating costs. o 1991 budget shortfall. HCP experienced a substantial budget shortfall in 1991. This shortfall made it necessary for HCP to make some dramatic changes in its operations throughout the rest of 1991. Staff has a concern that some of the same issues which affected HCP's 1991 . budget, may also affect their 1992 budget. o Executive Director for the HCP. The 1992 proposed budget outlines wages in the amount of $23,500 as a line item under operating expenses. HCP presently does not have an executive director. Staff is concerned that if an executive director for HCP is not hired very soon into 1992, that some of the proposed events will not be completed. o Proposed payment schedule. HCP did not specify a method of payment for next year's requested funds. Staff recommends if request is approved, payment be made to HCP twice yearly, once in January, and the second in July. • City Staff City Council To whom it may concern; Thank you so much for your consideration, Hopkins Community Promotions November 15, 1991 City of Hopkins 1010 1st Street South Hopkins, Minnesota 55343 1015 Mainstreet Hopkins, Minnesota 55343 (612) 935 -8115 Per the attached proposed budget for Hopkins Community Promotions for calendar year 1992, we respectfully submit our request for funding from the City of Hopkins. We request funding in the amount of $10,000, the same level of funding as in calendar year 1991. We have based our budget upon your graciously maintaining your support of our community efforts. Cuts in the funding would severely hamper our ability to present the events listed. We have pledged as a Board to strictly adhere to our 1992 budget and to practice strict financial responsibility. We strongly feel our organization contributes a great deal to the Main Street feeling of Hopkins and hope for your support in continuing our efforts. Any questions regarding the budget should be directed to either Elly Barth, treasurer, or Mary Vickerman, president, of Hopkins Community Promotions. EllyK.Barth for the Executive Board of Hopkins Community Promotions The Raspberry Capitol of the World 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS INCOME Funding 72264.00 Membership 12000.00 Business & Events Guide (net) 3500.00 Events Music in the Park 4760.00 Mainstreet Days/Art Fair 2300.00 Heritage Days/SoapBox Derby 4815.00 Silent Auction 5000.00 Marketplace 14000.00 TOTAL PROJECTED INCOME 11 8.639.00 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS OPERATING EXPENSES Wages (gross) 23500.00 Mileage 200.00 FICA 1797.75 FUTA/UC 526.00 Rent 21000.00 Postage 2350.00 Office Expenses 2625.00 Insurance 3115.00 Meeting Expenses 1050.00 Copy Machine 200.00 Legal & Accounting 600.00 Telephone 1875.00 Newsletter 2250.00 Petty Cash/Miscellaneous 750.00 TOTAL OPERATING EXPENSES 61.298.75 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS Breakfast 450.00 Awards 750.00 Flowers QSK AWARDS BREAKFAST AWARDS BREAKFAST Advertising 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS MAINSTREET DAYS Artscape 125.00 Mpls/St. Paul Magazine 777.50 City Pages 209.50 MN Suburban 1835.00 Jensen Posting 400.00 Central Screen Printing 570.00 Alan Sign 230.00 Art Fair Dollars 300.00 Entertainment Hoopsnakes 0.00 2nd night band 1700.00 Robin of Ahhhs 450.00 Beacon Hill 300.00 Bates/Sound 300.00 ASCAP 100.00 Printing 500.00 Banner 15.00 Generator 650.00 Donuts/Coffee 100.00 Awards 225.00 Ice Cream Social 100.00 BFI 700.00 Skyway 4700.00 Summary Advertising 4447.00 Entertainment 2850.00 Operating 6990.00 TOTAL MAINSTREET DAYS 14287,00 Advertising MN Suburban 1520.00 Keyline Supplement 75.00 Entertainment 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS MUSIC IN THE PARK 6 nights @ $400.00 2400.00 Ope Banner 15.00 Banner Painting 60.00 BFI 300.00 Summary Advertising 1595.00 Entertainment 2400.00 Operating 375.00 TOTAL MUSIC IN THE PARK Advertising Et_ tertainment 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS HERITAGE DAYS Mpls/St. Paul Magazine 775.00 City Pages 210.00 Weekly News 220.00 Jensen Posting 400.00 Central Screen Printing 590.00 Alan Sign f00.00 Hoopsnakes 2750.00 2nd night band 1700.00 Saturday Afternoon Band 2500.00 Sound 600.00 ASCAP 100.00 Printing 200.00 Banner 15.00 Generator 650.00 Donuts/Coffee 100.00 T -Shirts 275.00 Hoosier Stamping(wheels) 525.00 Buzz Tools (axles) 200.00 Justus (frames) 525.00 BFI 700.00 Skyway 4000.00 Summary Advertising 2795.00 Entertainment 7650.00 Operating 7190.00 TOTAL HERITAGE DAYS /SOAP BOX DERBY 17.635.00 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS MARKETPLACE Advertising Skytracker 410.00 Signage 100.00 Program Printing 1550.00 Ad Placement 6640.00 Entertainment To be determined 1800.00 Stage/Microphone 200.00 Exhibitors Party 100.00 tinQ Building Rental/Security 900.00 Booths/Drapes 1500.00 Signage 500.00 Generator 100.00 Misc. 200.00 Summary Advertising 8700.00 Entertainment 2100.00 Operating 3200.00 TOTAL MARKETPLACE $14.000.04 • 1992 PROPOSED BUDGET HOPKINS COMMUNITY PROMOTIONS MEMBERSHIP DRIVE Advertising Coupon Book 1750.00 Entertainment Donuts /Party 75.00 °Aerating Decals 318.00 Awards 45.00 Summary Advertising 1750.00 Entertainment 75.00 Operating 363.00 TOTAL MEMBERSHIP DRIVE ;188.00