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City of Hopkins Comprehensive Annual Financial Report 2009
COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF HOPKINS. MN For The Year Ended December 31, 2009 Prepared by the Department of Finance THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 TABLE OF CONTENTS Page Letter of Transmittal from the City Manager and Finance Director 3 Certificate of Achievement for Excellence in Financial Reporting 9 Administrative Organization Chart 10 City Officials 11 Independent Auditors' Report 13 Management's Discussion and Analysis (Unaudited) 15 A. Basic Financial Statements Government -wide Financial Statements: Statement of Net Assets 28 Statement of Activities 29 Fund Financial Statements: Balance Sheet - Governmental Funds 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 31 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund 34 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Economic Development Special Revenue Fund 39 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Tax Increment 1.2 - Entertainment Center Special Revenue Fund 40 Statement of Net Assets - Proprietary Funds 42 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds 44 Statement of Cash Flows - Proprietary Funds 45 Notes to Financial Statements 48 B. Required Supplementary Information Schedule of Funding Progress - Other Postemployment Benefit Plan 71 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 Page C. Combining and Individual Nonmajor Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 82 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Special Revenue Funds: State Chemical Assessment 90 Real Estate Purchases and Sales 91 Para -Transit 92 Housing Rehab 93 Parking 94 Communications 95 Depot Coffee House 96 Art Center 97 Tax Increment 2.1 - R.L. Johnson Company 98 Tax Increment 2.6 - Sonoma Project 99 Tax Increment 2.9 - Oaks of Mainstreet 100 Tax Increment 2.10 - Business District 101 Tax Increment 2.11 - Super Valu 102 Tax Increment 1.3 - 5th Avenue Flats 103 Tax Increment 1.4 Marketplace & Main 104 Combining Statement of Net Assets - Nonmajor Enterprise Funds 106 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor Enterprise Funds 107 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 108 Combining Statement of Net Assets - Internal Service Funds 110 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Funds 111 Combining Statement of Cash Flows - Internal Service Funds 112 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 Page A. Financial Trends Net Assets by Component 115 Changes in Net Assets 116 Fund Balances, Governmental Funds 118 Changes in Fund Balances, Governmental Funds 120 B. Revenue Capacity Assessed and Actual Value of Taxable Property 122 Direct and Overlapping Property Tax Rates 123 Principal Property Taxpayers 124 Property Tax Levies and Collections 125 C. Debt Capacity Ratios of Outstanding Debt by Type 126 Ratios of Net General Bonded Debt Outstanding 127 Direct and Overlapping Governmental Activities Debt 128 Legal Debt Margin Information 129 Pledged -Revenue Coverage 130 D. Demographic and Economic Information Demographic and Economic Statistics 131 Principal Employers 132 E. Operating Information Full-time Equivalent Employees by Type 133 Operating Indicators by Function/Program 134 Capital Asset Statistics by Function/Program 136 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 SECTION I INTRODUCTORY SECTION City of q opk * 1010 TwoStwtSout% a 9fopk w W 55343-7573 ■ Tholm 952-935-8474 • 'fuaq 952-935-I834 Am Ned ad&w.- ,.&T6 n,mwm June 22, 2010 To the Honorable Mayor, Members of the Hopkins City Council and the Citizens of the City of Hopkins, Minnesota: The Comprehensive Annual Financial Report (CAFR) of the City of Hopkins, Minnesota (the City) for the fiscal year ended December 31, 2009 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 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 LarsonAllen 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, 2009, 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 an unqualified opinion that the City of Hopkins financial statements for the fiscal year ended December 31, 2009, 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. T&mmV oh ffm CmmunflyteEnhanceteQu;%ofLift • InspbB +Educate +Invotm • Commun cafe + 3 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 government's manager and the government's attorney. 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 July 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 15th. 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 funds 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 34-40 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 90-104. 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 current tax base approximately 76% single family residential and apartments, and 24% commercial - rd industrial. The city's population has stabilized due to the fact that the City is largely developed and the national trend toward the lowering of persons per household. 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 Unity — Hopkins will be a community where • People are treated with respect • People participate in building culture, character and common bonds • Business growth throughout the City is supported while maintaining a vibrant City center • People feel safe, support outstanding schools and celebrate cultural heritages • People enjoy quality public services, parks and housing City of Hopkins Mission Partnering with the Community to enhance the quality of life, — Inspire, Educate, Involve, Communicate Economic Condition and Outlook Hopkins continues to show strong economic and redevelopment activities within the city. The valuation of new non-residential construction in 2009 was $36.7 million dollars. This development activity has been the result of a good development market in the Hopkins area along with successful planning on the part of the city council and city staff. Significant projects completed or begun in 2009 include the following: Activity Valuation Commercial Additions/Alterations: Excelsior Crossings Phase II $40,000,000 Excelsior Crossing Phase III $40,000,000 Eisenhower Community Center Remodeling $ 4,300,000 Efforts are being made for continued development and growth for 2010 and beyond. It is anticipated that approximately $218,000,000 of construction will also take place in the City of Hopkins during the next several years. Some anticipated projects for 2010-2013 include the following: Project Valuation Atlas Site Redevelopment $62,000,000 Marketplace & Main Apartments/Townhomes $56,000,000 Fifth Avenue Flats $40,000,000 Stn Avenue Redevelopment $60,000,000 5 Long-term financial planning The City of Hopkins has developed a strategic plan for economic development. As a part of this plan, the City of Hopkins intends to pursue various development and redevelopment efforts throughout the City. Several projects are anticipated. In 2010, projects to be constructed include the redevelopment of Block 64 (Fifth Avenue Flats) as a mixed-use retail/apartment project, phase 11 of Market Place Lofts apartment and completion of phase III of the Excelsior Crossing project which will be a major corporate campus comprising three office buildings each with seven stories and over 3,000 new employees. These developments will have major impacts on the community. Specialized planning is taking place to ensure that these developments occur so as to benefit the community and residential neighborhoods. Major improvements continue to be made along the Hopkins section of Excelsior Boulevard (County Road 3). The first phase of improvements occurred in 1998 - 2000 between Shady Oak Road and 9th Avenue South. The second phase occurred in 2002 — 2004 between Highway 169 and Blake Road. The third phase occurred in 2007 on the segment between Highway 169 and 8th Avenue. The final phase is the section from Blake Road to Meadowbrook Road — this project has provisional county funding and is tentatively scheduled for 2012 — 2013. Significant improvements are in the planning for Shady Oak Road (County Road 61). This project is a joint effort between Hennepin County and the Cities of Minnetonka and Hopkins. A number of neighborhood and town meetings have been held to gather input on this project that is projected to re -align the road and facilitate re -development of the area. The timing of the project is dependent on Hennepin County which has it placed in their road budget for 2014. Another project in the planning stages is the 14 -mile Southwest Corridor Light Rail Transit (LRT) line that will go from Eden Prairie to downtown Minneapolis passing through Hopkins and providing development potential at three transit stations that are planned for Hopkins. In downtown the Southwest LRT will connect with the Hiawatha and Central LRT lines. Construction of the light rail line is expected to begin in 2015 and will be funded with the Counties Transit Improvement Board's transit sales tax in the metro area (30%), and with Hennepin County Regional Railroad Authority (10%), Federal (50%), and State (10%) dollars. Relevant Financial Policies The State of Minnesota facing their own budget challenges unallotted city Market Value Homestead Credit (MVHC) aid. This resulted in a budget shortfall of $246,865 for the City of Hopkins. It is the city's policy to maintain a balanced budget, therefore budget adjustments in the form of wage freezes for most employees, elimination of non-essential capital items and small cuts across all departments were implemented thus achieving a balanced budget for 2009. Major Initiatives For 2009, the staff, following specific directives of the council and the manager, has been involved in a variety of projects throughout the year. These projects reflect the government's commitment to ensuring that its citizens are able to live and work in a safe environment and that the needs for services are met. 31 In 2009, we accomplished our annual street repair and improvements, at a cost of approximately $1,139,000. The projects included the Parkridge neighborhood street reconstruction, Blake Road mill and overlay, replacing infrastructure, roadway surface, curb and gutters, parking lot surfaces and alley reconstruction. The water department completed the Moline and Well #1 improvements totaling $84,000 and the storm sewer department started work on the Nine Mile Creek Bank Stabilization incurring project costs of $144,000. In 2009, the water, sewer and storm sewer departments also completed in conjunction with the street improvements, infrastructure reconstruction projects totaling $526,000. Other miscellaneous improvement projects in 2009 included Interlachen Park Playground equipment and picnic shelter ($94,000), city hall roof replacement ($21,800), Pavilion refrigeration system ($30,400) and Arts Center wireless installation ($8,300) along with other smaller projects. 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 comprehensive annual finance report for the fiscal year ended December 31, 2008. 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 comprehensive annual 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 comprehensive annual 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. 7 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, ■ Richard B. Getschow City Manager Christine M. Harkess, CPA, CGFM Finance Director Certificate of Achievement for Excellence in Financial Reporting Presented to City of Hopkins Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2008 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. gNG�lfFpj�, k STA S MUDpk1ES u TI N ' �y President Executive Director E 2 @ y . 2\@ L. o 2 »G \ 7 : % k G §ƒ 7 ) / G - \/> ��$L 06 U) =E Q) . \ a) �gC:(n $k0= � (o O F 4/ 0-C: )'6 o m cawWCL4I<e=a u » S a 8 2 E -� 72AI Ery �� 1£aoa± 2 @ y . 2\@ L. o t 99 d\kf\� \ 7 : '- c C,) a) u ) / G - \/> ��$L 06 U) =E Q) . a) �gC:(n $k0= � (o a 4/ 0-C: )'6 o m cawWCL4I<e=a t � / /E\ � c �5�m LU 0L co 'S m_�oo� <E_=of=± k \ 7 : (nk 2 'E ) / G - \/> � -r- " ® E2 0ƒf /_o\E§ 4/ p«\oQo / 0>9- c k \] E -� 72AI c E �� 1£aoa± � / /E\ � c �5�m LU 0L co 'S m_�oo� <E_=of=± k 06 2 E 7 : (nk S E' ) / G - \/> o E ® =' cn � ® E2 0ƒf /_o\E§ 4/ �\2 ES� 0>9- c k \] E -� 23fILK2(}/ c E �� / @o L =- E N 2k eOgeE2 e O >E =Q�EwEe< � / /E\ � c �5�m LU 0L co 'S m_�oo� <E_=of=± k 06 2 E 7 : (nk S E' = E E o E ® =' cn � ® E2 0ƒf /_o\E§ 4/ ES� 0>9- c k \] if Lu 23fILK2(}/ c E / � / /E\ � c �5�m LU 0L co 'S m_�oo� <E_=of=± 10 k m (nk S E' -L) /-2' u) .2 °°EJ \/)#\// 10 THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT Eugene Maxwell Kristi Halverson Rick Brausen Bruce Rowan Cheryl Youakim Richard B. Getschow Christine M. Harkess CITY OFFICIALS December 31, 2009 CITY COUNCIL Mayor Councilmember Councilmember Councilmember Councilmember CITY MANAGER FINANCE DIRECTOR 11 Term Expires 12-31-09 12-31-09 12-31-11 12-31-11 12-31-09 Appointed Appointed CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 SECTION II FINANCIAL SECTION 12 LarsenAlletf LLP CPAs, Consultants & Advisors www.larsonallen.com INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Hopkins, Minnesota 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, 2009, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Hopkins, Minnesota as of December 31, 2009, and the respective changes in financial position and cash flows, where applicable, thereof and the budgetary comparison for the general fund and the special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2010, on our consideration of the City of Hopkins, Minnesota'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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis and schedule of funding progress as listed in the table of contents is not a required part of the basic financial statements but is supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. (13) An independent member of Nexia International INTERNATIONAL Honorable Mayor and Members of the City Council Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Hopkins' basic financial statements. The introductory section, combining and individual fund statements and schedules and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the audit procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Minneapolis, Minnesota June 22, 2010 (14) 1-P LarsonAllen LLP CITY OF HOPKINS, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) This section of the City's comprehensive annual financial report presents a discussion and analysis of the City's financial activities during the fiscal year ended December 31, 2009. This discussion and analysis should be read in conjunction with the letter of transmittal in the introductory section of this report. Financial Highlights • The assets of the City of Hopkins exceeded liabilities by approximately $61.4 million. Of this amount, (unrestricted net assets), approximately $4.2 million may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net assets increased by approximately $503,000. • As of the close of the current fiscal year, the City of Hopkins governmental funds reported combined ending fund balances of approximately $14.9 million, an increase of approximately $2.1 million in comparison with the prior year. The increase was due to conservative spending and refunding bonds on two housing improvement bond issues. Approximately $4.85 million of fund balance is available for spending at the City's discretion (unreserved fund balance). • As of December 31, 2009, unreserved fund balance for the General Fund was approximately $3.9 million, or 39% of total general fund expenditures. • The City of Hopkins total debt increased by approximately $3.85 million during the current fiscal year due to bond sales and refundings. Four bond issues totaling $4.695 million will be refunded on February 2, 2010. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Hopkins basic financial statements. The City of Hopkins 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 supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Hopkins finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City of Hopkins assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Hopkins is improving or deteriorating. The statement of activities presents information showing how the City net assets changed during the most recent fiscal year. All changes in net assets 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). 15 Both of the government -wide financial statements distinguish functions of the City of Hopkins that are principally supported by taxes and intergovernmental revenues (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 of Hopkins include general, public safety, highways, streets, culture, recreation, urban redevelopment, housing, health and welfare. The business -type activities of the City of Hopkins include water, sewer, refuse, storm sewer utilities, an ice arena, and a housing and redevelopment authority. The government -wide financial statements include the City of Hopkins itself, but also a legally separate Hopkins Housing and Redevelopment Authority. 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 an integral part of the primary government. The government -wide financial statements can be found on pages 28-29 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 of Hopkins, 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 of Hopkins can be divided in two categories: governmental funds and proprietary 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 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 City'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 of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Hopkins maintains forty 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 Fund, Economic Development, Tax Increment District 1.2 Entertainment District, 1999-A Taxable Housing Improvement Bonds, 1999-B Taxable Housing Improvement Bonds, 2005-B Taxable Tax Increment Bonds of 1997 Refunding Bonds, and Municipal State Aid Construction fund, all of which are considered to be major funds. Data from the other thirty-three funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. 16 The City of Hopkins adopts an annual appropriated budget for its general fund and all of its special revenue funds except for the Community Development Block Grant and Section 8 funds. The budgetary comparison statements have been provided for the General fund, Economic Development fund and Tax Increment District 1.2 Entertainment District fund and schedules are provided for other funds to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 30-40 of this report. Proprietary funds. The City of Hopkins maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government - wide financial statements. The City of Hopkins uses enterprise funds to account for its water, sewer, refuse, storm sewer utilities, the pavilion ice arena, and the housing and redevelopment authority. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Hopkins various functions. The City of Hopkins uses internal service funds to account for replacement of equipment, insurance deductibles and compensated absences. Because all of these services predominantly benefit governmental 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 the water, sewer, storm sewer and pavilion/ice arena operations, all of which are considered to be major funds of the City of Hopkins. Data from the other two enterprise funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major proprietary funds is provided in the form of combining statements elsewhere in this report. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is also provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 42-46 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 can be found on pages 48-69 of this report. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information can be found on page 71 of this report. The combining statements referred to earlier in connection with non -major governmental funds, non -major proprietary funds and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 74-112 of this report. 17 Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Hopkins, assets exceeded liabilities by $61,372,523 at the close of the most recent fiscal year. Approximately three quarters (74%) of the City of Hopkins net assets are reflected in its investment in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to acquire those assets that are still outstanding. The City of Hopkins uses these capital assets to provide services to citizens. The net capital assets are not available for future spending. Although the City of Hopkins 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. City of Hopkins Net Assets December 31 Liabilities Other liabilities 8,975,396 6,358,922 2,373,766 895,484 11,349,162 7,254,406 Long-term liabilities outstanding 20,185,544 22,003,413 4,310,219 2,943,849 24,495,763 24,947,262 Total 29,160,940 28,362,335 6,683,985 3,839,333 35,844,925 32,201,668 Net Assets Invested in capital assets, net of related debt 31,700,690 30,769,922 13,484,942 16,081,209 45,185,632 46,851,131 Restricted 11,952,783 10,074,674 - - 11,952,783 10,074,674 Unrestricted 1,068,812 3,663,772 3,165,296 280,214 4,234,108 3,943,986 Total net $ 44,722,285 $ 44,508,368 $ 16,650,238 $ 16,361,423 $ 61,372,523 $ 60,869,791 A portion of the City of Hopkins net assets represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($4,234,108) may be used to meet the government's ongoing obligations to citizens and editors. At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its governmental and business -type activities. The City's net assets increased by $502,732 during the current fiscal year. Governmental and business -type activities. Governmental activities increased the City of Hopkins net assets by $213,917 and business -type activities increased net assets by $288,815. Key elements of the increases and decreases are as follows: IN Governmental Activities Business -Type Activities Total 2009 2008 2009 2008 2009 2008 Assets Current and other $ 27,868,693 $ 26,664,408 $ 3,586,315 $ 691,934 $ 31,455,008 $ 27,356,342 assets Capital assets 46,014,532 46,206,295 19,747,908 19,508,822 65,762,440 65,715,117 Total assets 73,883,225 72,870,703 23,334,223 20,200,756 97,217,448 93,071,459 Liabilities Other liabilities 8,975,396 6,358,922 2,373,766 895,484 11,349,162 7,254,406 Long-term liabilities outstanding 20,185,544 22,003,413 4,310,219 2,943,849 24,495,763 24,947,262 Total 29,160,940 28,362,335 6,683,985 3,839,333 35,844,925 32,201,668 Net Assets Invested in capital assets, net of related debt 31,700,690 30,769,922 13,484,942 16,081,209 45,185,632 46,851,131 Restricted 11,952,783 10,074,674 - - 11,952,783 10,074,674 Unrestricted 1,068,812 3,663,772 3,165,296 280,214 4,234,108 3,943,986 Total net $ 44,722,285 $ 44,508,368 $ 16,650,238 $ 16,361,423 $ 61,372,523 $ 60,869,791 A portion of the City of Hopkins net assets represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($4,234,108) may be used to meet the government's ongoing obligations to citizens and editors. At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its governmental and business -type activities. The City's net assets increased by $502,732 during the current fiscal year. Governmental and business -type activities. Governmental activities increased the City of Hopkins net assets by $213,917 and business -type activities increased net assets by $288,815. Key elements of the increases and decreases are as follows: IN City of Hopkins Changes in Net Assets For the Year Ended December 31 Expenses: General government Governmental Activities Business -Type Activities Total 1,679,040 2009 2008 2009 2008 2009 2008 Revenues: 6,171,249 Health and welfare 278,002 236,858 Program revenues: 236,858 Highways and streets 3,069,078 3,154,762 Charges for services S 875,470 S 872,388 S 5,208,666 S 4,808,966 S 6,084,136 S 5,681,354 Operating grants and housing 1,690,861 1,037,927 contributions 2,441,622 1,949,375 150,814 251,885 2,592,436 2,201,260 Capital grants and 1,565,184 Interest on long-term debt 1,025,771 1,090,341 - - contributions 745,505 170,393 142,691 394,913 888,196 565,306 General revenues: 1,356,448 Sewer 1,741,115 1,756,489 Property taxes 9,353,966 9,497,650 - - 9,353,966 9,497,650 Tax increments 1,636,609 1,186,395 1,636,609 1,186,395 Grants and contributions 771,107 Pavilion/ice arena 401,598 411,134 not restricted 309,609 434,163 309,609 434,163 Investment earnings 170,960 387,424 12,841 21,714 183,801 409,138 Gain on sale of capital assets 9,796 16,150 1,367 - 11,163 16,150 Total revenues 15,543,537 14,513,938 5,516,379 5,477,478 21,059,916 19,991,416 Expenses: General government 1,679,040 1,721,624 1,679,040 1,721,624 Public safety 6,249,519 6,171,249 6,249,519 6,171,249 Health and welfare 278,002 236,858 278,002 236,858 Highways and streets 3,069,078 3,154,762 3,069,078 3,154,762 Urban redevelopment and housing 1,690,861 1,037,927 1,690,861 1,037,927 Culture and recreation 1,482,349 1,565,184 1,482,349 1,565,184 Interest on long-term debt 1,025,771 1,090,341 - - 1,025,771 1,090,341 Water - - 1,221,556 1,356,448 1,221,556 1,356,448 Sewer 1,741,115 1,756,489 1,741,115 1,756,489 Storm sewer 403,231 417,595 403,231 417,595 Refuse 786,522 771,107 786,522 771,107 Pavilion/ice arena 401,598 411,134 401,598 411,134 Housing and redevelopment authority - - 528,542 679,994 528,542 679,994 Total expenses 15,474,620 14,977,945 5,082,564 5,392,767 20,557,184 20,370,712 Increase in net assets before transfers 68,917 (464,007) 433,815 84,711 502,732 (379,296) Transfers 145,000 145,000 (145,000) (145,000) - Increase in net assets 213,917 (319,007) 288,815 (60,289) 502,732 (379,296) Net assets - January 1 44,508,368 44,827,375 16,361,423 16,421,712 60,869,791 61,249,087 Net assets - December 31 S 44,722,285 S 44,508,368 S 16,650,238 S 16,361,423 S 61,372,523 S 60,869,791 19 Governmental activities: Property taxes increased in 2009 as a result of debt service levies and increased operating costs. The City also received a number of program grants for specific programs in addition to state municipal aid for a major street improvement project. Net assets increased primarily due to conservative spending and bond refunding for two housing improvement bond issues. Revenues by Source - Governmental Activities Gain on sale of capital Grants and assets Duk Investment earnings contributions not 1 % restricted 2% Charges for services 6% Tax increments 11% Proped 55 Operating grants and contributions 16% Capital grants and contributions 5% Expenses and Program Revenues - Governmental Activities $7,000,000 ........; ........; ........; ........; ........; ........; ........,. $6,000,000 Program revenues $5,000,000 Expenses $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 General Government Public Safety Highways and Streets Urban Redevelopment Culture and recreation Health and welfare Interest on long-term and Housing debt 20 Business -type activities. Business -type activities had an increase in net assets due to an ongoing effort to ensure that rates are adequate to fund all expenditures. A utility master plan was developed in 2007 with scheduled rate increases that are designed to cover operations, debt and capital needs over the next 15 years. As a result the utility funds are in a stronger financial position than they were a couple years ago. Revenues by Source - Business -type Activities Capital grants and contributions 3% Investment earnings 0% Operating grants and contributions 3% Charges for servi es 94% 21 Financial Analysis of the City's Funds As noted earlier, the City of Hopkins uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Hopkins governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Hopkins financing requirements. In particular, unreserved fund balance may serve as a useful measure of a City's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Hopkins governmental funds reported combined ending fund balances of $14,917,511, an increase of $2,143,936 in comparison with the prior year. The key factor of the increase is refunding bonds sold for two Housing Improvement Areas along with conservative spending in the General Fund. Fund balance was also used for development projects, payment of long-term debt and use of previous years grant revenue for current years expenditures. Approximately 32% of fund balance ($4,845,984) constitutes unreserved fund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to pay debt service, 2) to pay for tax increment projects and debt, 3) to provide for future rehabilitation loans, 4) for inventory, 5) for prepaid expenses and 6) to provide for long-term receivables that are not available or spendable resources. The general fund is the chief operating fund of the City of Hopkins. At the end of the current fiscal year, unreserved fund balance of the general fund was $3,930,996. This represents 95.2% of the general fund's total fund balance. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents approximately 39.7% of total general fund expenditures while total fund balance represents approximately 41.6% of that same amount. The fund balance of the City of Hopkins general fund increased by $131,671 during the current fiscal year. Expenditures exceeded revenues by $87,507 before transfers. This increase was a result of conservative spending in the wake of the governor's unallotment of state aids, by leaving several vacant positions open and reducing public works maintenance projects we were able to maintain a balanced budget. The Economic Development fund has a total fund balance of $2,740,752. The fund balance decreased by $169,177 as fund balance was used for economic development activities. The Tax Increment District Entertainment District has a total fund balance of ($117,471). The fund deficit increased by $21,281 as tax increment expenditures exceeded revenues. The city expects to recover the expenditures as tax increment revenues are projected to increase over the next few years. The 1999A Taxable Housing Improvement bond fund has a total fund balance of $213,654 all of which is reserved for the payment of debt service. The fund balance increased by $2,382 as tax revenues exceeded current debt payment requirements. 22 The 1999B Taxable Housing Improvement bond fund has a total fund balance of $404,085, all of which is reserved for the payment of debt service. The fund balance increased by $23,644 as tax revenues exceeded current debt payment requirements. The 2005B Refunding Taxable Tax Increment Bonds of 1997 bond fund has a total fund balance of $328,388, all of which is reserved for the payment of debt service. The fund balance increased by $32,689 as tax revenues exceeded current debt payment requirements. The Municipal State Aid Construction fund has a total fund balance of $813,817 which is unreserved. The fund balance increased by $578,499 as a result of state aid revenues received for specific projects and a reimbursement from another governmental unit for previous years project costs. Revenues in this fund are derived from the State of Minnesota municipal state aid fund annual allotments. Funds remain in our account until an eligible project occurs at which time funding is drawn down from Hopkins' account. Proprietary funds. The City of Hopkins proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets of the Water fund at the end of the year amounted to $1,127,113. The unrestricted net assets are used to pay for infrastructure improvements. The increase in net assets amounted to $72,834 and is due to operating revenues exceeding operating expenses. A utility master plan was prepared in 2007 to address the funding shortage and prepare a rate structure that will sustain the water fund in addition to providing for future capital expenditures. The new rate structure which calls for modest annual increases in water rates was implemented in 2008 and along with conservative spending we are seeing the results of the study impacting the water funds financial status. Unrestricted net assets of the Sewer fund at the end of the year amounted to $423,181. The unrestricted net assets are used to pay for infrastructure improvements. The decline in net assets amounted to $192,398 and is due to operating costs exceeding operating revenues. A utility master plan was prepared in 2007 to address the funding shortage and prepare a rate structure that will sustain the sewer fund in addition to providing for future capital expenditures. The new rate structure which calls for modest annual increases in sewer rates was implemented in 2008 however it will take several years for the rates to "catch up" with the expenditures. Unrestricted net assets of the Storm Sewer Utility fund at the end of the year amounted to $864,264. The unrestricted net assets are used to pay for infrastructure improvements. The growth in net assets amounted to $377,914 and is due to operating revenues exceeding operating costs. Unrestricted net assets of the Pavilion/Ice Arena fund at the end of the year amounted to ($158,590). The unrestricted net assets are used to pay for operating costs of the Pavilion. Infrastructure costs are currently funded by the Capital Improvement Fund due to lack of available funds. Net assets increased by $384 as the Pavilion works towards eliminating this negative position. User rates have been adjusted and rentals for the facility are actively being sought to increase revenues during the non -ice season. Expenditures are closely monitored and energy saving features have been added to decrease energy costs. 23 General Fund Budgetary Highlights The difference between the general fund original budget and the final amended budget resulted in departmental budget changes but did not increase the total expenditure budget. The reason for the amendments was a transfer between expenditure categories to match actual expenditures. The budget changes can be summarized as follows: • Several departments had small budget modifications, however when departments were combined for reporting purposes the budget changes balanced out and no change was noted. During the year revenues were under budgetary estimates by $75,615 primarily due to the unallotment of property state aids, a decrease in grant revenues, and decreased interest income. This was offset by higher than expected building permit revenues and charges for plan reviews. Expenditures were under the budget by $147,122 and was due conservative spending, delayed hiring of open positions, reduced maintenance costs, and energy conservation measures. The net effect of these budget impacts was a net budgetary increase in fund balance of $131,671 after transfers. Capital Asset and Debt Administration Capital assets. The City of Hopkins investment in capital assets for its governmental and business type activities as of December 31, 2009, amounts to $65,762,440 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, vehicles, machinery and equipment, park facilities, roads, highways, bridges, distribution systems and construction in progress. Major capital asset events during the current fiscal year included the following: Construction in progress additions totaled $2,121,964 for infrastructure projects. $3,890,067 of assets was transferred from construction in progress to other improvements as infrastructure projects were completed and put into service. Vehicle and equipment purchases totaled $274,626. Major purchases included public works equipment, public safety vehicles and equipment. 24 City of Hopkins Capital Assets (net of depreciation) December 31 Governmental Activities Business -Type Activities $ 46,014,532 $ 46,206,295 $ 19,747,908 $ 19,508,822 2009 $ 5,973,500 19,361,301 8,718,764 22,996,797 2,081,810 1,798,120 4,832,148 $ 65,762,440 Total 2008 19,977,313 8,820,418 20,022,442 2,472,044 1,849,149 6,600,251 $ 65,715,117 Additional information on the City of Hopkins capital assets can be found in note 5 on pages 58-59 of this report. Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt outstanding of $30,505,000. Of this amount, $2,440,000 comprises housing and redevelopment authority lease revenue debt, $3,200,000 comprises tax increment redevelopment debt, and $11,575,000 comprises general obligation and special assessment debt, all of which is backed by the full faith and credit of the government. Another $7,090,000 is special fees debt for which the government is liable in the event of default by the property owners subject to the fees, however of that amount $2,980,000 was refunded in 2009 and will be called February 2010. The remainder of the City of Hopkins debt, $6,200,000, represents bonds secured solely by specified revenue sources (i.e., revenue bonds). Of that amount $1,940,000 was refunded and will be called February 2010. City of Hopkins Outstanding Debt General Obligation and Revenue Bonds December 31 2009 2008 2009 2008 Land $ 5,805,711 $ 5,805,711 $ 167,789 $ 167,789 Buildings 15,999,077 16,483,405 3,362,224 3,493,908 Infrastructure - - 8,718,764 8,820,418 Improvements 18,126,547 15,609,641 4,870,250 4,412,801 Vehicles 1,735,739 2,076,306 346,071 395,738 Equipment 1,588,657 1,585,875 209,463 263,274 Construction in progress 2,758,801 4,645,357 2,073,347 1,954,894 $ 46,014,532 $ 46,206,295 $ 19,747,908 $ 19,508,822 2009 $ 5,973,500 19,361,301 8,718,764 22,996,797 2,081,810 1,798,120 4,832,148 $ 65,762,440 Total 2008 19,977,313 8,820,418 20,022,442 2,472,044 1,849,149 6,600,251 $ 65,715,117 Additional information on the City of Hopkins capital assets can be found in note 5 on pages 58-59 of this report. Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt outstanding of $30,505,000. Of this amount, $2,440,000 comprises housing and redevelopment authority lease revenue debt, $3,200,000 comprises tax increment redevelopment debt, and $11,575,000 comprises general obligation and special assessment debt, all of which is backed by the full faith and credit of the government. Another $7,090,000 is special fees debt for which the government is liable in the event of default by the property owners subject to the fees, however of that amount $2,980,000 was refunded in 2009 and will be called February 2010. The remainder of the City of Hopkins debt, $6,200,000, represents bonds secured solely by specified revenue sources (i.e., revenue bonds). Of that amount $1,940,000 was refunded and will be called February 2010. City of Hopkins Outstanding Debt General Obligation and Revenue Bonds December 31 $ 24,305,000 $ 23,245,000 $ 6,200,000 $ 3,410,000 $ 30,505,000 $ 26,655,000 The City of Hopkins total bonded debt increased by $3,850,000 or 14.4% during the current fiscal year. The increase is due to refunding bonds issued in December 2009 for $4,920,000 in bonds that will be called February 2010. 25 Governmental Activities Business -Type Activities Total 2009 2008 2009 2008 2009 2008 HRA lease revenue bonds $ 2,440,000 $ 2,565,000 $ $ $ 2,440,000 $ 2,565,000 G.O. Tax increment bonds 3,200,000 3,575,000 3,200,000 3,575,000 G.O. Housing fee bonds 7,090,000 4,560,000 7,090,000 4,560,000 G.O. Redevelopment bonds 245,000 385,000 245,000 385,000 G.O. Capital improvement bonds 9,000,000 9,470,000 9,000,000 9,470,000 G.O. Special assessment bonds 2,330,000 2,690,000 2,330,000 2,690,000 Revenue bonds - - 6,200,000 3,410,000 6,200,000 3,410,000 $ 24,305,000 $ 23,245,000 $ 6,200,000 $ 3,410,000 $ 30,505,000 $ 26,655,000 The City of Hopkins total bonded debt increased by $3,850,000 or 14.4% during the current fiscal year. The increase is due to refunding bonds issued in December 2009 for $4,920,000 in bonds that will be called February 2010. 25 General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax Increment levies and also by fees assessed against benefited properties. Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by the Water and Storm Sewer Utility Funds current revenues. City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City, and repayment monies are generated by the collection of special assessments and general levies. Housing and Redevelopment Authority bonds are backed by the full faith, credit and taxing power of the HRA, and repayment monies are generated by annual lease appropriations from the City. The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of estimated property market value within the City during 2009. At December 31, 2009, the debt limit for the City is $50,734,311. Of the total debt, $10,804,134 of general obligation and revenue bonds is applicable to the limit. The legal debt margin is $39,930,177. The City of Hopkins was upgraded to a "AA" rating from Standard & Poor's in December 2009 and maintains an "Al" rating from Moody's. Additional information on the City of Hopkins long-term debt can be found in note 9 on pages 61- 64 of this report. Economic Factors and Next Year's Budgets and Rates A number of factors were taken into consideration when preparing the City of Hopkins 2010 budget. Utility charges were reviewed and as a result of the utility master plan, rates for the water and sewer will be increased by modest amounts annually at least through 2017. The tax capacity rate increased for the first time in four years as a result of economic conditions. The State of Minnesota's budget challenges resulted in the unallotment of state aids for the second year. The City's population would remain constant. As a result of these factors the City prepared a static budget for 2010 with 0% wage increases for most employees, delayed hiring of vacant positions, non-essential capital items eliminated and small increases across all departments. During the current fiscal year, unreserved fund balance in the general fund increased to $3,930,996 or 39% of general fund expenditures. The Office of the State Auditor recommends unreserved fund balances no less than five months of operating expenditures. The City is within that recommendation for the general fund. The unreserved fund balance is used to pay for the City's general fund obligations 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 interest 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 Finance Director, City of Hopkins, 1010 First Street South, Hopkins, MN 55343. 26 BASIC FINANCIAL STATEMENTS 27 City of Hopkins Statement of Net Assets December 31, 2009 The notes to the financial statements are an integral part of this statement. 28 Primary Government Governmental Business -type Activities Activities Total Assets Cash and investments $ 15,060,054 $ 3,297,402 $ 18,357,456 Taxes receivable 376,717 - 376,717 Special assessments receivable 6,704,543 - 6,704,543 Accounts receivable 436,076 363,085 799,161 Intergovernmental receivable 2,540,482 34,363 2,574,845 Interest receivable 34,832 7,040 41,872 Internal balances 330,187 (330,187) - Inventories 97,291 29,690 126,981 Prepaid items 99,719 17,244 116,963 Deferred charges 356,575 31,440 388,015 Long-term receivables 1,135,119 136,238 1,271,357 Property held for resale 697,098 - 697,098 Capital assets, non depreciable 8,564,512 2,241,136 10,805,648 Capital assets, net of accumulated depreciation 37,450,020 17,506,772 54,956,792 Total assets 73,883,225 23,334,223 97,217,448 Liabilities Accounts payable 419,657 178,690 598,347 Salaries payable 281,581 27,291 308,872 Due to other governments 2,944 24,608 27,552 Accrued interest payable 415,040 54,649 469,689 Unearned revenue 2,504,792 2,433 2,507,225 Non current liabilities: Compensated absences due within one year 650,823 91,095 741,918 Compensated absences due in more than one year 195,664 23,389 219,053 Net OPEB liability 112,983 18,864 131,847 Capital lease due within one year 35,559 - 35,559 Capital lease due in more than one year 355,556 - 355,556 Bonds due within one year 4,665,000 1,995,000 6,660,000 Bonds due in more than one year 19,521,341 4,267,966 23,789,307 Total liabilities 29,160,940 6,683,985 35,844,925 Net Assets Invested in capital assets, net of related debt 31,700,690 13,484,942 45,185,632 Restricted for: Economic development 695,209 - 695,209 Debt service 11,257,574 - 11,257,574 Unrestricted 1,068,812 3,165,296 4,234,108 Total net assets $ 44,722,285 $ 16,650,238 $ 61,372,523 The notes to the financial statements are an integral part of this statement. 28 T] IW R O ^ V V N I- iZ- (1)n 000 1- O � CO OO( CO O O O n 1 0 N O n N (h ( (O � I- (Ii O N LO O (O W h (O0) N (O _O G CO COO lO LO O N C l0 _ � V�(Ijr- OO V CF) ` In 0 - O) 0 Z CO R w N y ' ' ' ' ' ' VN r- 00 N In 00 C y C. _^ O N W n 0 coN O L N N O (O (l (00 (00 0o0 O N N I- N N O l0 0 w Z ;j N (h .� V V 000 N N lO (O d •� a 5 7 Q Q. m VT C X R LU M N V W N (h N O ^ (h . . . . . pj CO O) O) O CO CO O O CO O) O O O V N ONO Z _ R � N( O N N I- O O O) CO CO O) � O 0 O) co � Uhf) N O V N O N N w E N 000 n 00 0) O 0 V V (� CO n (O N I' •> N O) V V i Q V ,O69 69 1 (n 1 1 (O 1 (n 1 1 1 1 (1) 00 (O N N �N N V N ( -- (O N L N 00 (O V V 00 00 C. o U U 69 69 0 N � N d N M (O (O lO lO N (h V (O N N N -a a N V Q N V (NO N N 00 V O to to > C O (O I- (O (O 00 (O V (O O N C N N dw 7 (O O N N lO N N N Y G U i y m n - 000 N i t N O Q N E N C '' (V (V N > 0 i C. i (6 O (U N 0 C C (6 c 2 v (sa .� w w N m E U :: 3 w r- O LO O 00 0 0 c� ao ao o m m n > _ y C (O (O N CF)I- CF)V N N (O (O (1) N} L I� N O V (h I- W (O N W (O -- N C N x O N w N N O V 0 N 0) N 0) 00 O 00 0) 00 V fJl E U N O H w N n 00 V O N to 1- 00 n 0) O N (O I- (h to 00 00 n N O N 00 O 3 >, oZj C C N N C0 ,U i> N (O N N N O N N LL N m m m t U > o x D z Z va m a~ C7 C7 w ami � (7 H V O� (O V I� ON (O N N 00 N V V N O N O O 00 (h � (O N (`0 N 0) V (O 00 NW O N V) V to N lO lO lO lO C I- V I- (O 0) 00 N r- n (O 00 N I- N (O N N O (O V OV N- 0 00 V UN O Up (O n - - - N - lO O W ER O O s:s N O N O j Q N N � m Q N N E N (6 0 - O fl f/l N C N N N f/l N > - N(6 rn N EQ > >, -,:: >0 > Q Q U)0) O^ a) CL M � o a '� t m H vNi a� .N 3 > � 0 0 C7 IL 2 2� U > � > (n (n Of IL 2 0 U (7 m l) C N 7 O LL H T] 30 CO I� M M N m OCO O m O co O O CO CO CO CO O N CO co O M � M Ca) OO V co mNM O)V OH NN O OVO) O O CO O O O V M V O)LO ON) O (OOOO) V O COO L�O O OR LMO LNOLO V I� Ul M M VO) O O) M O LO LO W- O N TN(O O O- M O O N O CO -O O LO LO - O O M O O LO O- ON O M O co(O M N O OE M M I� V LO - O co � cc; 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00 01 In V Cl) Cl) LO M m Z a 0 0 0 N 4 O O LL CLL H m y) C 0 W N O N V V O N V V 0 a)0 N 000 ((00 O N O M O (O O O V oc0 O _^ M a V In O O M Cl) V i y N> 01 X N N N N N 00 V N O M ~ O 7 Y N LL E NCL - V) V) y w U N O 0 i i i i O i ON i i i i 0 N 16 N "O a) 0 N Q 0) C2 C\l 0 0 O O O M to 00 M M C4 Lo O N 0 N co 0 r N N N .� a) M M O M r W 8 N N U v> x O va V3 W (7 w y N c ' N N O OM co O co 00 00 001 r M N N V > LL a) O� L LO N N (0 I\ O W N EV i i i i i i i i i i i i i O O In O O In co N N r O O r 0 N LO wO N N O In r r O O r- N E Q co LO r r 0 = O cN0 001 001 O (O O O 0 0 W Q N � a O O Cl) N O (O O r N V N 00 V O O V (O O In N O V N N I- N o0 co (O (O r O O OO r LO 00 LL V N O0 N O O V (O 0 M 01 N In O0 01 r V (, O I- O r 00 N M N to r O 0 O V O O r r N (O N Cl) O In O Cl) M 01 0 I- r V O O V O to 0 00 In V M 01 N C 00 01 , In N 01 M � V a) V3 � a) O q y a) N 0 � O � � y O N > N y a a a) 0 O a t O y V 0 w N y � a a s > y Q y y E N N 'E d d N a o y E m Q a o a y E =° m o o y w o E a rn w o w o w >> 3 >` ` a o m o r r oar >° w v ay ay y E w E o v a F y a m o v Q R a ,� Z Z .. w ° .Q w .N O o w ax �,- o w ° o m m y o W m L w y m H O y H v > o 'x a1 0 o os a1 o ) H a a1 o a- :5 .E ° O Q t H H cn m a a w a H cn ii U ii w U U O ii LL WA $ U \ ) \ %\ EE o ®G » /e/\]/ { f § #)a f2 E U) Ee =-® =f § [7)2 2 n ƒ\0 f \ > M NE ° , 0 a 3 )/ m % / t 2§ E // ,Eee,o Cf C: ®;> oE� _= 02 \af \ } BJ0E \e 0 0 /\ 0 k E7 m ¥ a) ®= E 2 m o e W 0 C � E \oma o� = 75 U) 2 0± ( R 0 m z= o o> X33-0 U) -0 U) 0) Ee -o , J=/o 0 0� #//\k\�\ }E���} \\ a® ® §§\$} k- 0 U)m 0 %ƒ2E)3' \c $».2 U) /\\ 450$2 R@f® 7\\tf° a§e =°a°a oo�ss_ e,,o�% » ef®E� %# =»�=m� ,7 { f=/# Q % E ).S 2/ f e° m` E ;Em'Tc M= »® °°�_±® ® % = > So ® = Q ® y=00 ®~ \\ \�\0-6 �( \ 33) §/ of 0 e°R =e» j ¥ $ m -0 & e % , * y uj , § & % , $ _§.,__ >® >, /_®__ - ,, o ,\j cf a)M f§ �«t= » 46 0- U) SE3#.�g \&\ §E��x 52 $0 %�EE2.o� e \[k\\\f �> d22[\j\j\ / 593,2 & E�.o%o o� / c o,o� °3 ¢o ®�>>®,= o 152«/0/ �% /\&&\»-0 33 (3i LQ $ U \ ) \ %\ EE o ®G » /e/\]/ { f § #)a f2 E U) Ee =-® =f § [7)2 2 n ƒ\0 f \ > M NE ° , 0 a 3 )/ m % / t 2§ E // ,Eee,o Cf C: ®;> oE� _= 02 \af \ } BJ0E \e 0 0 /\ 0 k E7 m ¥ a) ®= E 2 m o e W 0 C � E \oma o� = 75 U) 2 0± ( R 0 m z= o o> X33-0 U) -0 U) 0) Ee -o , J=/o 0 0� #//\k\�\ }E���} \\ a® ® §§\$} k- 0 U)m 0 %ƒ2E)3' \c $».2 U) /\\ 450$2 R@f® 7\\tf° a§e =°a°a oo�ss_ e,,o�% » ef®E� %# =»�=m� ,7 { f=/# Q % E ).S 2/ f e° m` E ;Em'Tc M= »® °°�_±® ® % = > So ® = Q ® y=00 ®~ \\ \�\0-6 �( \ 33) §/ of 0 e°R =e» j ¥ $ m -0 & e % , * y uj , § & % , $ _§.,__ >® >, /_®__ - ,, o ,\j cf a)M f§ �«t= » 46 0- U) SE3#.�g \&\ §E��x 52 $0 %�EE2.o� e \[k\\\f �> d22[\j\j\ / 593,2 & E�.o%o o� / c o,o� °3 ¢o ®�>>®,= o 152«/0/ �% /\&&\»-0 33 City of Hopkins Intergovernmental Market value aid credit 250,000 250,000 1 of 5 (247,304) Statement of Revenues, Expenditures and Changes in Fund Balance 166,010 166,010 229,884 Budget and Actual Insurance premium - police 170,000 170,000 General Fund 47,681 Insurance premium - fire 107,000 For the Year Ended December 31, 2009 74,989 (32,011) Federal grants 1,000 1,000 Variance with (1,000) Other grants 4,000 final budget 1,000 Budget Total Intergovernmental positive 698,010 Original Final Actual (negative) Revenues Fines and forfeitures 290,000 290,000 Taxes (3,596) Court fines 167,600 General property taxes $ 6,870,187 $ 6,870,187 $ 6,929,965 $ 59,778 Fiscal disparities 1,108,927 1,108,927 1,084,451 (24,476) Total Taxes 7,979,114 7,979,114 8,014,416 35,302 10,075,492 9,999,877 Licenses and permits Business 145,300 145,300 125,660 (19,640) Non -business 448,135 448,135 493,463 45,328 Total Licenses and permits 593,435 593,435 619,123 25,688 Intergovernmental Market value aid credit 250,000 250,000 2,696 (247,304) State grants 166,010 166,010 229,884 63,874 Insurance premium - police 170,000 170,000 217,681 47,681 Insurance premium - fire 107,000 107,000 74,989 (32,011) Federal grants 1,000 1,000 363,802 (1,000) Other grants 4,000 4,000 1,000 (3,000) Total Intergovernmental 698,010 698,010 526,250 (171,760) 32,026 (73,757) Fines and forfeitures 290,000 290,000 286,404 (3,596) Court fines 167,600 167,600 129,240 (38,360) Charges for services General government 19,400 19,400 27,097 7,697 Public safety 149,950 149,950 284,160 134,210 Public works 1,200 1,200 2,776 1,576 Recreation 50,000 50,000 49,769 (231) Total Charges for services 220,550 220,550 363,802 143,252 Other Investment earnings 105,783 105,783 32,026 (73,757) Franchise fees 290,000 290,000 286,404 (3,596) Miscellaneous 21,000 21,000 28,616 7,616 Total Other 416,783 416,783 347,046 (69,737) Total Revenues 10,075,492 10,075,492 9,999,877 (75,615) Expenditures General Government: Mayor and council Salaries and employee benefits 26,497 26,497 26,722 (225) Materials, supplies and services 51,575 51,575 41,349 10,226 Total 78,072 78,072 68,071 10,001 34 City of Hopkins Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund For the Year Ended December 31, 2009 Expenditures, (continued) General Government, (continued): Administrative services Salaries and employee benefits Materials, supplies and services Total Less expenditures charged to other activities Net Finance Salaries and employee benefits Materials, supplies and services Total Less expenditures charged to other activities Net Legal Services Materials, supplies and services Municipal Building Salaries and employee benefits Materials, supplies and services Total Less expenditures charged to other activities Net Elections Salaries and employee benefits Materials, supplies and services Total City Clerk and Reception 2of5 Variance with final budget Budget positive Original Final Actual (negative) $ 493,226 $ 493,226 $ 487,889 $ 5,337 58,845 58,845 43,112 15,733 552,071 552,071 531,001 21,070 (100,000) (100,000) (100,000) 104,138 452,071 452,071 431,001 21,070 167,288 160,345 332,771 332,771 337,149 (4,378) 68,161 68,161 63,296 4,865 400,932 400,932 400,445 487 (211,055) (211,055) (211,055) 189,877 189,877 189,390 487 130,625 130,625 137,221 (6,596) 124,065 124,065 117,816 6,249 224,744 224,744 178,996 45,748 348,809 348,809 296,812 51,997 (40,000) (40,000) (40,000) 308,809 308,809 256,812 51,997 27,798 27,798 26,284 1,514 15,405 15,405 11,474 3,931 43,203 43,203 37,758 5,445 Salaries and employee benefits 117,840 Materials, supplies and services 19,669 Total 137,509 Less expenditures charged to other activities (37,000) Net 100,509 Assessing Salaries and employee benefits 80,810 Materials, supplies and services 110,478 Total 191,288 Less expenditures charged to other activities (24,000) Net 167,288 117,840 109,583 19,669 20,164 137,509 129,747 (37,000) (37,000) 100,509 92,747 80,810 80,207 110,478 104,138 191,288 184,345 (24,000) (24,000) 167,288 160,345 35 8,257 (495) 7,762 7,762 603 6,340 6,943 6,943 City of Hopkins 3of5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund For the Year Ended December 31, 2009 Total General Government Public Safety: Police Police Administration Salaries and employee benefits Materials, supplies and services Net Police Patrol and Investigation Salaries and employee benefits Materials, supplies and services Total Police Services Salaries and employee benefits Materials, supplies and services Total Total Police Fire Salaries and employee benefits Materials, supplies and services Total Inspections Salaries and employee benefits Materials, supplies and services Total Total Public safety 1,572,360 1,572,360 1,465,633 106,727 376,009 376,009 383,376 (7,367) Variance with 102,156 78,983 23,173 478,165 final budget 462,359 Budget positive 2,419,783 Original Final Actual (negative) Expenditures, (continued) (41,501) 2,771,577 2,771,577 2,903,167 General Government, (continued): 887,658 887,658 Planning and economic development (3,856) 190,045 190,045 171,912 Salaries and employee benefits $ 103,771 $ 103,771 $ 103,900 $ (129) Materials, supplies and services 18,135 18,135 8,388 9,747 Total 121,906 121,906 112,288 9,618 Less expenditures charged to other activities (20,000) (20,000) (20,000) - Net 101,906 101,906 92,288 9,618 Total General Government Public Safety: Police Police Administration Salaries and employee benefits Materials, supplies and services Net Police Patrol and Investigation Salaries and employee benefits Materials, supplies and services Total Police Services Salaries and employee benefits Materials, supplies and services Total Total Police Fire Salaries and employee benefits Materials, supplies and services Total Inspections Salaries and employee benefits Materials, supplies and services Total Total Public safety 1,572,360 1,572,360 1,465,633 106,727 376,009 376,009 383,376 (7,367) 102,156 102,156 78,983 23,173 478,165 478,165 462,359 15,806 2,419,783 2,419,783 2,509,872 (90,089) 351,794 351,794 393,295 (41,501) 2,771,577 2,771,577 2,903,167 (131,590) 887,658 887,658 891,514 (3,856) 190,045 190,045 171,912 18,133 1,077,703 1,077,703 1,063,426 14,277 4,327,445 4,327,445 4,428,952 (101,507) 521,279 521,279 516,496 4,783 289,642 289,642 296,713 (7,071) 810,921 810,921 813,209 (2,288) 373,826 373,826 372,113 1,713 76,025 76,025 61,910 14,115 449,851 449,851 434,023 15,828 5,588,217 5,588,217 5,676,184 (87,967) 0 Expenditures, (continued) Health and Welfare: Inspections Salaries and employee benefits Materials, supplies and services Total City of Hopkins 4of5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund For the Year Ended December 31, 2009 Variance with final budget Budget positive Original Final Actual (negative) $ 116,618 $ 116,618 $ 121,648 $ (5,030) 26,448 26,448 25,784 664 143,066 143,066 147,432 (4,366) Total Health and welfare 143,066 143,066 147,432 (4,366) Highways and Streets: 43,585 43,585 43,569 16 Public works buildings and equipment services 374,515 374,515 367,203 7,312 Salaries and employee benefits 223,167 223,167 219,080 4,087 Materials, supplies and services 98,226 98,861 72,616 26,245 Capital outlay 6,000 5,365 903,248 5,365 Total 327,393 327,393 291,696 35,697 Less expenditures charged to other activities (213,000) (213,000) (202,238) (10,762) Net 114,393 114,393 89,458 24,935 Public Works Administration and Engineering Salaries and employee benefits 330,930 330,930 323,634 7,296 Materials, supplies and services 43,585 43,585 43,569 16 Total 374,515 374,515 367,203 7,312 Less expenditures charged to other activities (213,000) (213,000) (174,273) (38,727) Net 161,515 161,515 192,930 (31,415) Streets and Alleys Salaries and employee benefits 384,610 384,610 441,150 (56,540) Materials, supplies and services 616,509 616,509 572,098 44,411 Capital outlay 1,500 1,500 181,688 1,500 Total 1,002,619 1,002,619 1,013,248 (10,629) Less expenditures charged to other activities (110,000) (110,000) (110,000) 228,054 Net 892,619 892,619 903,248 (10,629) Snow and Ice Removal Salaries and employee benefits Materials, supplies and services Capital outlay Total Municipal parks and tree service: Salaries and employee benefits Materials, supplies and services Total Total Highways and Streets 116,043 116,043 108,467 7,576 64,645 64,645 86,340 (21,695) 1,000 1,000 1,000 181,688 181,688 194,807 (13,119) 499,814 499,814 499,871 (57) 289,918 289,918 228,054 61,864 789,732 789,732 727,925 61,807 2,139,947 2,139,947 2,108,368 31,579 37 Expenditures, (continued) Culture and Recreation: Activity center Salaries and employee benefits Materials, supplies and services Total Park and Recreation Salaries and employee benefits Materials, supplies and services Total Total Culture and Recreation Unallocated Materials, supplies and services Total Expenditures City of Hopkins 5of5 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund For the Year Ended December 31, 2009 Variance with final budget Budget positive Original Final Actual (negative) $ 223,079 $ 223,079 $ 218,607 $ 4,472 105,330 105,330 81,949 23,381 328,409 328,409 300,556 27,853 52,703 52,703 40,831 11,872 162,270 162,270 161,277 993 214,973 214,973 202,108 12,865 543,382 543,382 502,664 40,718 73,520 73,520 12,089 61,431 10,060,492 10,060,492 9,912,370 148,122 Other Financing Sources (Uses): Transfers in: 50,000 50,000 Transfers out: (15,000) (15,000) (5,836) 9,164 Total Other Financing Sources (Uses) (15,000) (15,000) 44,164 59,164 Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 131,671 131,671 3,996,115 3,996,115 3,996,115 S 3,996,115 S 3,996,115 S 4,127,786 S 131,671 The notes to the financial statements are an integral part of this statement. M City of Hopkins Economic Development Special Revenue Fund Statement of Revenues, Expenditures , and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Expenditures Salaries and employee benefits 168,960 166,334 Variance with Materials, supplies and services Original and 61,878 final budget Total final 228,212 positive Less expenditures charged to other activities budget Actual (negative) Revenues: 216,063 190,712 25,351 General property taxes $ 50,000 $ 48,254 $ (1,746) Intergovernmental revenue: County grant - 5,000 5,000 Investment earnings 33,000 14,121 (18,879) Other - 15,160 15,160 Total Revenues 83,000 82,535 (465) Expenditures Salaries and employee benefits 168,960 166,334 2,626 Materials, supplies and services 84,603 61,878 22,725 Total 253,563 228,212 25,351 Less expenditures charged to other activities (37,500) (37,500) Net 216,063 190,712 25,351 Other Financing Sources (Uses): Transfer to Art Center Fund Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 (61,000) (61,000) - (194,063) (169,177) 24,886 2,909,929 2,909,929 - $ 2,715,866 $ 2,740,752 $ 24,886 The notes to the financial statements are an integral part of this statement. 39 City of Hopkins Tax Increment District Entertainment District Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Revenues: Taxes: Tax increment Investment earnings Miscellaneous revenue Total Revenues Expenditures: Materials, supplies and services Capital outlay: Public improvements Total Expenditures Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 Year Ended December 31, 2009 Original and final budget $ 50,000 $ 1,000 Variance with final budget positive Actual (negative) 52,174 $ 2,174 3,059 2,059 74 74 51,000 55,307 4,307 1,275 1,588 (313) 75,000 75,000 - 76,275 76,588 (313) (25,275) (21,281) 3,994 (76,190) (96,190) - $ (101,465) $ (117,471) $ (16,006) The notes to the financial statements are an integral part of this statement. 40 41 42 79 FA FA -- 145 N ,--i M_ 1 \O C\ O M M N N 1 1l \O M M M FA FA G O O > WI DO IS' T to E O T U 7, bOA .� s0. N DO I U U U 7 U W Q U U Q� cI!�. ciL O u (4 42 43 } \ § E\(® "t" j ) a � § u 2* j 2` w p\§} 2 za ca 79 \ § \ \ e © ƒ � 43 } \ § "t" j ) a � § u 2* j 2` w p\§} 2 za ca 43 � I O x O M U 00 M 00 C� C O N O w o o a N n o 0 00 p p 00 j U M M l� N O\ �/1 M --i l� O 00 _ Ef3 V1 �O O\ N N N 00 O N M O �/1 M 00 N �O 00 O M M_ 00 �) �O N M O\ W V1 00 O\ O M O N M � O0 N O\ O\ 00 ,--i V1 00 �c N M M M O 00 O N N 00 O M 00 O N �O 00 EA EA 0 O DD 00 M u l— 00 DD 00 't.00 --� 00 � O r- O O O vl 00 O O DD O O00 � vl .� � 00Mi N M 00 V1 V1 O O\ O\ Mr- N --� �O w O 00 N N M N N V1 V1 a N N EA EA �O N 00 N 00 00 00 00 N 00 00 N O\ N DD vl M O l- 00 N M N M O O �O �O M M Cf) N N a EA EA U M O M O M 00 N O l7t O\ O\ 't O M Cf) 00 O .y l DD O W M rlt 00 O v1 N N 00 M O M N O N N 0 O 00 N M W O N C �..i M V1 EA EA 00 O\O W DD DD O DD '3 :�, DD O N O N M U l� O\ MM Mi 00 O 00 EA EA 00 N O M DD vl O M M M O M O M r- 00 N vl N 00 cf)M N DD r- O M J N ,--i M M EA EA ti U a) ti N at U y ct � U tod4 S7i U Yom. to � W cci � � U d4 p C ¢, V] .�Sli C� 'L" �% .� .� V] N iti � iy �sem. S: N u � V C� C� sem. U O � scd. U O O 0 0 o z 44 45 N '^ OM N 'O \O O, h N 0000 OC, Y w Vl v CO O --i a Vl Vl r r N O OO o o m O l n v M f: M �O M M N M N O N C7 � a a � o 00 � O, 00 N ll N oo a1 a1 o0 v v 0 0 o v o v , n o v a O�n m o M o o 0 o N v o 0 M 0 v O; C, 00 o 0 fl)v o0 00 O; r- 00 �o "I v v O a o o a a c� oo N M N ~ M N Vl 69 69 �n CO N CO 01 � O O O 01 \O M 01 h N O \O M U M 00 N M 00 oo a1 za w ° va es 00 a N oo N cl N r- O1 O O w Vl O, 00 00 M \O N O O M h Ni N N M v U U~ � 69 69 O O N N N O, M O O � M M O ti 01 M N Ol CO N M O O \O h N O M h h N O cO v M CO N � h 01 cl O N f cl O, h v h CO `� \O N N N ti Ov \O v \O M h Vl M O, CO O fl) w p Ff3 69 � o w U o U a ° 00c� oo v, v ,� o o r oo c M N N 01 't 01 O O h M O M N N O O N M M h O O r-i 00 O `— 0o0 M M U S. o0 00 00 o v v, o 0o a1 a1 O O N N h \O O, N 01 O N N M N 00 h 69 69 N U cC U bA U U U i ct Cml. u9 .+� lu� u - � bA U � It cd" O. -+ i. c U 'O .. ^O O N N U ct g U° O. O O ul a a a a a U a U Z �ct ct 0.p1 u u u u zu u 45 46 ct 00 00 w U U O 69 69 69 N N N M \O M O N M M M_ O \0 00 h h h \O N \O cC N 00 ��..i \o M l O O 00 N v Vl �--i \0 M 00 fl) 69 69 69 \O Vl CD N \o 00 C, y,i O vii 00 ON00 O 00 C, N N 00 z a w va es va wM CO CO M M \O M M M v \O O M v O M U U 6A 69 69 cl O cl j --i M cl T N N O M p N h � a 00 � O M 4. V w o AN x NN fl) M rn U a S. O w a1 fl) v v oo �o h" o0 00 �o ri ri oo ct a an U lL .O +ci C an ° N o cc U N U U x z 46 NOTES TO THE FINANCIAL STATEMENTS 47 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS December 31, 2009 I SUMMARY OF SIGNIFICANT ACCOUNT POLICIES 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 accepted accounting principles as applied to governmental units by the Government Accounting Standards Board (GASB). The more significant accounting policies of the City are described below. A. REPORTING ENTITY 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, however when blended with the City it is shown with a December 31 year-end. Blended Component Unit 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. Individuals on the City Council represent the governing board of the HRA. 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., statement of net assets and the statement of changes in net assets) report information on all activities of the primary government and its component units. The interfund services provided and used are not eliminated in the process of consolidation. 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 segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 contributions 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 fund 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 48 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 revenue as soon as all eligibility requirements have been met. Unbilled utility service receivables are recorded at year end. Governmental funds are accounted for using the current financial resources measurement focus and the modified accrual basis of accounting. Their revenues are recognized when susceptible to accrual (i.e., when they become measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or within sixty days thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual include fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences that are recognized when due and payable. The City reports the following major governmental funds: The general fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The economic development fund accounts for development opportunities of the city. Sources of funds are derived from the administration of loans and an annual tax levy. The tax increment district entertainment district fund accounts for the repayment of debt on the re- development district tax increment project. The 1999A taxable housing improvement bond fund accounts for resources accumulated and payments made for principal and interest on long-term debt issued to pay for Valley View Home improvements. The owners of these town homes pay an annual fee, which in turn pays for the bond issue. The 1999E taxable housing improvement bond fund accounts for resources accumulated and payments made for principal and interest on long-term debt issued to pay for Westbrook Patio Home improvements. The owners of these town homes pay an annual fee, which in turn pays for the bond issue. The 2005E taxable tax increment bonds of 1997 refunding bond fund accounts for resources accumulated and payments made for principal and interest on long-term debt issued to pay for Westbrook Patio Home improvements. The owners of these town homes pay an annual fee, which in turn pays for the bond issue. The municipal state aid construction fund accounts for resources accumulated and payments made for street improvements funded with State of Minnesota funding through the state aid construction program. The City reports the following major proprietary funds: The water fund accounts for the operations of the City -owned water distribution system. The water bonds of 2000 and 2009A are included as part of this fund since revenues of the water fund are pledged to pay principal and interest on this bond. The sewer fund accounts for the operations of the City -owned sewer lift stations and disposal system. The sewer bonds of 2009A are included as part of this fund since revenues of the sewer fund are pledged to pay principal and interest on this bond. 49 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 The storm sewer fund accounts for the operations and improvements of the storm water drainage system. The storm water bond issues of 1999C, 2001, 2003A and 2009A are included as part of this fund since revenues of the storm sewer fund are pledged to pay principal and interest on these bonds. The Pavilion/Ice Arena fund accounts for the operations and improvements of the city -owned Pavilion/Ice Arena. Additionally, the City reports the following fund types: Governmental Funds Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Project Funds - Capital project funds are used to acquisition or construction of major capital facilities proprietary funds or special revenue funds. Proprietary Funds account for financial resources to be used for the and infrastructure, other than those financed by Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis, be financed or recovered primarily through user charges. Internal Service Funds — Internal service funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost -reimbursement basis. Internal service funds are used for equipment replacement, insurance deductions and employee benefits. Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the GASB. Governments also have the option of following subsequent private -sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private -sector guidance. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements, however interfund services provided and used are not eliminated in the process of consolidation. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City enterprise funds and internal service funds are charges to customers for sales and service. Operating expenses for enterprise funds and internal service 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 non-operating revenues and expenses. 50 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then use unrestricted resources as they are needed. D. CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent available in authorized investments pursuant to Minnesota Statutes (see note 4). Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments in certificates of deposit and commercial paper with maturity date of less than one year at the date of purchase are reported at cost or amortized cost, which approximates fair value. Investments other than commercial paper held longer than one year are reported at fair value, based on quoted market price. The City accounts for its cash, cash equivalents and investments in an entity -wide cash management pool, which is used essentially as a demand deposit account. For purposes of the statement of cash flows, the proprietary funds consider all investments to be cash equivalents. Restricted cash and investments are reported separately on the financial statement. E. 1NTERFUND RECEIVABLES/PAYABLES Activity between funds that is representative of lending/borrowing arrangements and transactions between funds that are outstanding at the end of the fiscal year are referred to "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." The non-current portion of due to/from other funds is offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. F. 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. G. 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 $1,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost. Donated capital assets are recorded at estimated fair market 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 HRA are depreciated using the straight-line method over the estimated useful lives as follows: Buildings 30 - 40 years Mains and Lines 40 - 50 years 51 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Streets Improvements Vehicles Equipment H. COMPENSATED ABSENCES 20 - 25 years 10 - 20 years 3 - 30 years 3 - 20 years 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 number 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 result of employee resignations and retirements. The employee benefits internal service fund reports the governmental funds' liability for compensated absences on the accrual basis. I. LONG-TERM OBLIGATIONS In the government -wide financial statements, and proprietary 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 fund type statement of net assets. Bond premiums and discounts, as well as issuance costs are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the governmental fund financial statements bond premiums and discounts, as well as bond issuance costs are recognized 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. J. FUND EQUITY In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. K. INTERFUND TRANSACTIONS Inter -fund services provided and used are accounted for as revenues and expenditures. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. All other interfund transactions are reported as transfers. 52 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 L. PROPERTY TAXES Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County (the County) for collection in the following year. In the State of Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over assessable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable by taxpayers in two equal installments, on May 15 and October 15. Personal property taxes are also payable by taxpayers in two equal installments, on February 28 and June 30. The County provides tax settlements to cities and other local governments three times a year, on or before January 25, July 5 and December 3. In the governmental fund financial statements property taxes are accrued and recognized as revenue for collections within 60 days of year-end. Taxes that remain unpaid at the County on December 31 are classified as delinquent taxes receivable, and are fully offset by deferred revenues because they are not available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. M. CONDUIT DEBT OBLIGATIONS From time to time, the City has issued Commercial Development Revenue Notes/Bonds in accordance with the Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to private -sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The obligations are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers from the bond holder to the private -sector entity served by the debt issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the obligations. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2009, there were 10 notes/bond issues outstanding, with an aggregate principal amount payable of approximately $38 million. N. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net assets — governmental activities as reported in the government -wide statement of net assets. One element of that reconciliation explains that long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Details of this difference are as follows: 53 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Bonds payable $ 24,186,341 Accrued interest payable 409,860 Net OPEB obligation 112,983 Net adjustment to reduce fund balance — total governmental funds to arrive at net assets — governmental activities 24.709.184 B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT - WIDE STATEMENT OF ACTIVITIES The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and change in net assets of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains, "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this difference are as follows: Capital outlay $ 1,399,145 Depreciation expense (1,295,585) Net adjustment to increase net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities 103 560 Another element of that reconciliation states that "The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net assets." The details of this $807 difference is as follows: In the statement of activities, only the gain on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital assets sold. $ (807) Another element of that reconciliation explains that, "the issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt uses financial resources of the governmental funds. Neither of these transactions has any effect on the net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of net changes." The details of these differences are as follows: Issuance of general obligation bonds $2,865,000 Less discounts (24,400) Less deferred costs (34,972) Principal repayments (1,805,000) OPEB expense 45,719 Amortization of net deferred issuance costs 27,506 Amortization of bond premium and discount 6,965 Prior year interest expense (441,482) Accrue interest expense for current year 409,860 Net adjustment to decrease net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities 1.049.196 54 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 3 STEWARDSHIP, COMPLIANCE AND ACCOUNTIBILITY A. BUDGETS AND BUDGETARY ACCOUNTING Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all governmental funds except the Section 8 and Hennepin County CDBG 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. 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 appropriations throughout the year. B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS For the year ended December 31, 2009, actual expenditures exceeded the budgeted amounts in the following funds: State Chemical Assessment Team $129,384 Tax Increment 1-2 Entertainment District 313 Real Estate Purchases and Sales 1,350 Communications 12,611 Tax Increment 2-1 R.L. Johnson District 84,825 Tax Increment 1-4 Market Place & Main 19,392 Art Center 764 These over expenditures were funded by greater than anticipated revenues of the Communication and Tax Increment 2-1 funds, by available fund balances in the Economic Development and Art Center funds, and by future revenues in the State Chemical Assessment Team fund, Tax Increment 1-2 and 1-4 funds. 55 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process are funds that are completely reimbursable from the federal government and a federal housing contracted program that ended December 31, 2009. The Section 8 and Community Development Block Grant are non -budgeted funds. C. FUND BALANCE DEFICITS At December 31, 2009, the following funds had deficit fund balances or net assets. These deficits will be funded through future tax levies, contributions, grants, charges for services or developer payments: State Chemical Assessment Team $101,947 Paratransit 11,000 Art Center 898,351 Tax Increment 1.2 Entertainment District 117,471 Tax Increment 2.6 Sonoma District 306,961 Tax Increment District 1.3 5th Avenue Flats 63,954 Tax Increment District 1.4 Marketplace & Main 17,861 Permanent Improvement Revolving 31,817 D. NET ASSETS RESTRICTED BY ENABLING LEGISLATION The government -wide statement of net assets reports $695,209 in restricted net assets for economic development, of which $588,337 is restricted by enabling legislation. 4. DEPOSITS AND INVESTMENTS As of December 31, 2009 the City had the following deposits and investments: Investment Tvue Fair Value Municipal obligations $ 1,545,810 Negotiable certificates of deposit 3,871,712 Money market 12,567,426 Deposits 372,508 Total fair value 18.357.456 Interest rate risk — Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in interest rates. In accordance with its investment policy, the city manages its exposure to declines in fair values by holding long-term government investments to maturity and by investing in commercial paper with maturity dates of 270 days or less. At of December 31, 2009 the City had the following investment maturities: M: City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Investment maturities (in years) Fair Less No Value than one 11-55 maturily Investment Type Muncipal obligations $ 1,545,810 Negotiable certificates of deposit 3,871,712 Money market accounts 12,567,426 Demand deposits 372,508 $ - $ 1,545,810 $ 3,871,712 12,567,426 372,508 $ 18,357,456 $ 3,871,712 $ 1,545,810 $ 12,939,934 Credit risk — Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations. Credit risk is measured using credit quality ratings of investments in debt securities as described by nationally recognized rating agencies such as Standard & Poor's and Moody's. According to the City's investment policy commercial paper shall be restricted to issues, which mature in 270 days or less with a rating of A-1 (Moody's), P-1 (Standard & Poor's) or F-1 (Fitch) among at least two of the three rating agencies. The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations in the State of Minnesota or any of its municipalities (d) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturity in 270 days or less; and (f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies or their subsidiaries. (g) Repurchase or reverse repurchase agreements 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. The following table lists the credit quality ratings per Moody's and/or Standard and Poor's and/or Fitch of the City's investments at December 31, 2009. Quality Ratings Fair FDIC Value AAA AA2 AAI A2 Insured Unrated Investment Type Muncipal obligations $ 1,545,810 $ 401,664 $ 234,812 $ 809,271 $ 100,063 $ - $ Negotiable certificates of deposit 3,871,712 - - - - 3,871,712 Money market accounts 12,567,426 - 12,567,426 Demand deposits 372,508 - 372,508 $ 18,357,456 $ 401,664 $ 234,812 $ 809,271 $ 100,063 $ 3,871,712 $ 12,939,934 Custodial credit risk Deposits= For deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the legal investments described above, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes 57 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. At December 31, 2009 the City had no deposits that were uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the City's agent in the City's name. Investments — For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside parry. All investments held by the City are insured or registered or are held by the City or its agent in the City's name. The City has the ability and intent to hold its investments to maturity and therefore intends to recover the full carrying value of its investment portfolio upon maturity. Concentration of credit risk — The City's investment policy does not specifically address the issue of concentration of investments by issuer. 5. CAPITAL ASSETS Capital asset activities for the year ended December 31, 2009 were as follows: Governmental activities: Capital assets, not being depreciated Land Construction in Progress Total not being depreciated Capital assets, being depreciated Buildings Other Improvements Vehicles Machinery & Equipment Total being depreciated Less accumulated depreciation: Buildings Other Improvements Vehicles Machinery & Equipment Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Ending Balance Increases Decreases Transfers Balance $ 5,805,711 $ - $ $ $ 5,805,711 4,645,357 1,246,709 (3,133,265) 2,758,801 10,451,068 1,246,709 (3,133,265) 8,564,512 19,759,799 - - 19,759,799 26,829,897 66,317 3,133,265 30,029,479 3,983,645 31,419 (79,343) - 3,935,721 4,619,952 240,268 (29,115) - 4,831,105 55,193,293 338,004 (108,458) 3,133,265 58,556,104 (3,276,394) (484,328) - (3,760,722) (11,220,256) (682,676) - (11,902,932) (1,907,339) (371,986) 79,343 (2,199,982) (3,034,077) (236,581) 28,210 (3,242,448) (19,438,066) (1,775,571) 107,553 (21,106,084) 35,755,227 (1,437,567) (905) 3,133,265 37,450,020 $ 46,206,295 $ (190,858) $ (905) $ - $ 46,014,532 58 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Depreciation expense was charged to City functions as follows Governmental activities: Beginning General government $ 39,493 Public safety Ending Highways and streets Balance Increases Decreases Transfers Balance Business -type Activities: charged to the various functions based on their usage of the assets 479,987 Total depreciation expense - governmental activities it -7-755 71 Capital assets, not being depreciated Water $ 218,513 Sewer 140,017 Land $ 167,789 $ - $ $ $ 167,789 Construction in Progress 1,954,894 875,255 828 804 (756,802) 2,073,347 Total not being depreciated 2,122,683 875,255 (756,802) 2,241,136 Capital assets, being depreciated Buildings 6,805,599 6,434 88,421 6,900,454 Infrastructure 18,302,938 167,637 127,472 18,598,047 Other Improvements 5,267,462 30,463 538,509 5,836,434 Vehicles 729,552 - - 729,552 Machinery & Equipment 817,081 2,939 (19,733) 2,400 802,687 Total being depreciated 31,922,632 207,473 (19,733) 756,802 32,867,174 Less accumulated depreciation: Buildings (3,311,691) (226,539) - (3,538,230) Infrastructure (9,482,520) (396,763) (9,879,283) Other Improvements (854,661) (111,524) (966,185) Vehicles (333,816) (49,665) - (383,481) Machinery & Equipment (553,805) (44,313) 4,895 (593,223) Total accumulated depreciation (14,536,493) (828,804) 4,895 - (15,360,402) Total capital assets, being depreciated, net 17,386,139 (621,331) (14,838) 756,802 17,506,772 Business -type activities capital assets, net $ 19,508,822 $ 253,924 $ (14,838) $ $ 19,747,908 Depreciation expense was charged to City functions as follows Governmental activities: General government $ 39,493 Public safety 259,927 Highways and streets 860,714 Urban redevelopment and housing 1,256 Culture and recreation 134,194 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 479,987 Total depreciation expense - governmental activities it -7-755 71 Business -type activities: Water $ 218,513 Sewer 140,017 Storm Sewer 190,461 Refuse 47,490 Pavilion/Ice arena 66,828 Housing and Redevelopment Authority 165,495 Total depreciation expense - business -type activities 828 804 59 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Construction commitments The City has active construction projects as of December 31, 2009. The projects include street improvements. The City's commitment with contractors related to these projects is $102,226. 6. INTERFUND RECEIVABLES AND PAYABLES The following funds had amounts receivable from other funds, and the respective funds had equal amounts payable to other funds at December 31, 2009: Due from other funds General Total Due to other funds: Non-maj or governmental $ 924,101 $ 924,101 Tax Increment District Entertainment District - - Pavilion 218,490 218,490 Non -major proprietary 20,448 20,448 Total due to other funds $ 1,163,039 $ 1,163,039 Advances from other funds The interfund receivables and payables are to eliminate negative cash between funds and to allow for development loans or to facilitate a project or operations of another fund. 7. INTERFUND TRANSFERS The following is a summary of transfers between funds as of December 31, 2009: Transfers in Non -major General Governmental Total Transfers out: Economic Internal General S 50,000 S 5,836 S Development Service Total Advanced to other funds: Water 45,000 45,000 Non -major governmental $ 616,839 $ - $ 616,839 Tax Increment District Entertainment District 1,458,179 - 1,458,179 Non -major proprietary - 91,249 91,249 Total advances to other funds 2,075,018 $ 91,249 $ 2,166,267 The interfund receivables and payables are to eliminate negative cash between funds and to allow for development loans or to facilitate a project or operations of another fund. 7. INTERFUND TRANSFERS The following is a summary of transfers between funds as of December 31, 2009: Transfers in Non -major General Governmental Total Transfers out: General S 50,000 S 5,836 S 55,836 Economic Development - S 61,000 61,000 Water 45,000 45,000 Sewer 50,000 50,000 Storm Sewer 25,000 25,000 Non -major governmental 827,039 827,039 Non -major business -type 25,000 25,000 Total transfers out S 50,000 S 1,038,875 S 1,088,875 •1 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general obligation debt. Non -routine transfers include the following: 1) Annual transfers from water, sewer and storm sewer for lease payments on new public works facility. 2) An annual transfer, within non -major governmental funds, from the Economic Development and Communication funds to the Art Center Fund totaling $147,920 to pay the original debt for building the facility. 3) Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments. 4) Transfer from Capital Projects Fund to the General Fund of $50,000 to balance the budget following state aid unallotments. 8. LEASES The city has entered into a lease agreement as a lessee for financing the acquisition of an aerial lift fire truck with a down payment of $445,427. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of their future minimum lease payments as of the inception date. The asset acquired through the capital lease is as follows: Governmental Activities Asset: Machinery and equipment $870,427 Less: Accumulated depreciation (50,695) Total 819 732 The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2009 are as follows: 9. LONG-TERM DEBT The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are issued as 20 -year serial bonds. 61 Governmental Activities Year Ending December 31, 2010 S 54,217 2011 54,217 2012 54,217 2013 54,217 2014 54,217 2015-2018 216,868 Total minimum lease payments 487,953 Less: amount representing interest (96,839) Present value of minimum lease payments S 391,115 9. LONG-TERM DEBT The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are issued as 20 -year serial bonds. 61 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Refunding On December 31, 2009 the City issued $2,865,000 in Taxable General Obligation Housing Improvement Bonds, Series 2009B for the purpose of refunding $1,035,000 Taxable General Obligation Housing Improvement Bonds, Series 1999A and $1,830,000 Taxable General Obligation Housing Improvement Bonds, Series 1999B. Future debt service payments will be reduced by $550,156 with a present value savings of $433,635. The refunded bonds will be called and paid on February 1, 2010. General obligation bonds currently outstanding are as follows: Purpose Interest Rates Original Amount Current Amount Governmental activities 2.00-8.0% $ 22,335,000 $14,080,000 Governmental activities — refunding 1.00-8.1% 10,443,543 5,455,000 Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending December 31 2010 2011 Governmental Activities Principal Interest $ 4,165,000 $ 727,818 1,350,000 610,457 2012 1,360,000 560,737 2013 1,105,000 514,437 2014 1,145,000 472,655 2015-2019 5,985,000 1,628,287 2020-2024 4,425,000 381,178 $ 19,535,000 $ 4,895,569 The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City, and repayment monies are generated by the collection of special assessments and general levies. The bonds have a stated rate of interest from 1.65% - 4.8% and are payable over the next nine years. The bonds originally issued at $4,585,000 have a current balance of $2,330,000. Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending December 31 2010 2011 2012 Governmental Activities Principal Interest $ 375,000 $ 89,315 285,000 75,751 295,000 64,080 2013 290,000 52,124 2014 200,000 41,863 2015-2018 885,000 77,031 $ 2,330,000 $ 400,164 Revenue bonds The City also issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. On December 31, 2009 the City issued $3,295,000 General Obligation Bonds, Series 2009A to finance water, sewer and storm sewer improvements and to refund $1,140,000 Water Revenue Bonds, Series 2000A and $815,000 Storm Sewer Revenue Bonds, Series 1999C. Future debt service payments will be reduced by $133,419 with a present value savings of $123,884. The refunded bonds will be called and paid on February 1, 2010. CL City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Revenue bonds outstanding at year-end are as follows: Purpose Storm sewer construction & replacement Water tower painting, meter system replacement Storm sewer - refunding Water refunding Water construction & replacement Sanitary sewer construction & replacement Interest Rates Onainal Amount Current Amount 2.0-5.0% Principal $ 2,810,000 $ 1,680,000 4.5-5.5% $ 142,228 2,060,000 1,000,000 2.0-4.0% 2012 2,215,000 830,000 2.0-4.0% 460,000 850,000 850,000 2.0-4.0% 94,033 820,000 820,000 2.0-4.0% 2020-2024 1,020,000 1,020,000 Revenue bond debt service requirements to maturity are as follows: Year Ending December 31 Principal Interest 2010 $ 1,995,000 $ 142,228 2011 420,000 124,145 2012 445,000 114,876 2013 460,000 105,107 2014 470,000 94,033 2015-2019 1,235,000 323,755 2020-2024 1,020,000 129,381 2025 155,000 3,100 $ 6,200,000 $ 1,036,625 Public Facility Lease Revenue Bonds The Housing and Redevelopment Authority in and for the City of Hopkins, a blended component unit of the City, has issued public facility lease revenue bonds for the construction of police station improvements. The Housing and Redevelopment Authority has entered into ground leases with the City for the lease of the facilities to the City. The leases will remain in effect until all principal and interest on the bonds have been paid. So long as the leases are in effect, the City will make semiannual lease payments on each February 1 and August 1, in amounts sufficient to pay all principal and interest on the bonds due on such payment date. The bonds are special obligations of the Housing and Redevelopment Authority. The bonds do not constitute a general obligation of the Housing and Redevelopment Authority or the City. It is the intent of the City to levy ad valorem taxes an amount sufficient to make rental payments required under the leases. In the event the annual appropriation is not made, the bond trustees are entitled to repossession and the right to re -lease the buildings and land. Public facility lease revenue bonds currently outstanding are as follows: Purpose Police Station improvements Interest Rates Oris4inal Amount Current Amount 2.0-4.35% $ 3,050,000 $ 2,440,000 Annual debt service requirements to maturity are as follows: Year Ending December 31 Principal Interest 2010 $ 125,000 $ 90,091 2011 130,000 86,391 2012 135,000 82,281 2013 140,000 77,811 2014 145,000 73,054 2015-2019 795,000 282,741 2020-2024 970,000 106,705 $ 2,440,000 $ 799,074 63 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At December 31, 2009, the debt limit for the City is $50,734,311. Of the total debt, $8,772,279 of general obligation and revenue bonds is applicable to the limit. The legal debt margin is $41,962,032. Advance Refunding On August 14, 2007 the City issued $9,920,000 in General Obligation Capital Improvement Bonds, Series 2007A for the purpose of refunding the $10,760,000 HRA Lease Revenue Bonds, Series 2002A. Future debt service payments will be reduced by $120,340 with a present value savings of $89,973. Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2009, was as follows: Governmental Activities: Bonds payable: G.O. tax increment bonds General obligation bonds Total general obligation bonds Special assessment bonds Public facility lease bonds Less deferred amounts For issuance discounts For issuance premiums On refunding Total bonds payable Compensated absences Net OPEB liability Capital lease payable Governmental activity long-term liabilities Business -type activities: Bonds payable: Revenue bonds Less deferred amounts For issuance premiums Compensated absences Net OPEB liability Business -type activity long-term liabilities Beginning Ending Due Within Balance Additions Deductions Balance One Year $ 8,135,000 $ 2,865,000 $ 710,000 $ 10,290,000 $ 3,545,000 9,855,000 - 610,000 9,245,000 620,000 17,990,000 2,865,000 1,320,000 19,535,000 4,165,000 2,690,000 - 360,000 2,330,000 375,000 2,565,000 - 125,000 2,440,000 125,000 (105,263) - 7,110 (98,153) - 6,635 - (664) 5,971 - (2,596) (24,400) 519 (26,477) - 23,143,776 2,840,600 1,811,965 24,186,341 4,665,000 802,753 694,557 650,823 846,487 650,823 67,264 201,849 156,130 112,983 - 425,000 - 33,885 391,115 35,559 $ 24,438,793 $ 3,737,006 $ 2,652,803 $ 25,536,926 $ 5,351,382 $ 3,410,000 $ 3,295,000 $ 505,000 $ 6,200,000 $ 1,995,000 - 63,317 (351) 62,966 - 130,531 86,949 102,996 114,484 91,095 15,522 33,708 30,366 18,864 - $ 3,556,053 $ 3,478,974 $ 638,011 $ 6,396,314 $ 2,086,095 For the governmental activities compensated absences are generally liquidated by the general and special revenue funds. 64 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 10. PENSION PLAN OBLIGATIONS 1. Defined Benefit Pension Plans - Statewide A. Plan Description All full-time and certain part-time employees of the City of Hopkins are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost sharing, multiple -employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers that qualify for membership by statute are covered by PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement 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 PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and PERF members hired prior to Julyl, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree --no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. 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 terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the web at mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. 65 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.0%, respectively, of their annual covered salary in 2009. PEPFF members were required to contribute 9.4% of their annual covered salary in 2009. The City of Hopkins is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.75% for Coordinated Plan PERF members and 14.1% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2009, 2008 and 2007 were $316,832, $298,627, and $268,222, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2009, 2008 and 2007 were $305,185, $277,938, and $222,191, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. 2. Hopkins Fire Relief Association (HFRA) Plan Description The City contributes to the Hopkins Fire Relief Association (Association); a single employer defined benefit plan. The Association administers the plan and issues separate financial statements that can be obtained by contacting the Association. Volunteer firefighters of the City are members of the Association. The plan provides for permanent and short term disability benefits, death benefits and pensions with a set value for the annual withdrawal amount. Full vesting in the plan requires a member to have served for at least 5 years, to have reached the age of 50 years and to have been a member of the Association for at least 20 years. These benefit provisions and all other requirements are consistent with enabling statutes. Fundins4 Policv and Annual Pension Information The governing board of the Association requests changes in benefit levels and contribution requirements that must be approved by the City Council. The funding policy provides that contributions from the City and from the State of Minnesota are in amounts sufficient to accumulate assets to pay benefits when due. The City passes through state aids allocated to the plan, in accordance with state statutes. The annual pension information is as follows: 2009 Contributions: Actuarial valuation date: Actuarial cost method: Assumed rate of return: Actuarial valuation period Amortization method Amortization period Inflation rate Projected salary increases Post retirement benefit increases •: City $ 32,166 State $ 64,532 12/31/08 Entry age normal actuarial cost method 5% Open Level dollar — open Ten years None Not applicable $0 per year of service 11 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Annual Pension Benefit Cost for Past Three Years (the most recent available) Annual Pension % of Annual Pension Net Pension Obligation Year Ended Cost (APC) Cost Contributed At Year Ended 12/31/2008 $32,166 100% $0 12/31/2007 $32,166 100% $0 12/31/2006 $32,166 100% $0 Schedule of Funding Progress (Required Supplemental Information) Actuarial Actuarial Accrued Excess (Under) Actuarial Value of Liability (AAL) Of Assets Funded Valuation Assets Entry Age Over AAL Ratio Date (a) (b) (a -b) (a/b) 12/31/2008 $1,982,694 $2,485,423 ($502,729) 80% 12/31/2007 $3,217,931 $2,778,117 $439,814 116% 12/31/2006 $2,911,631 $2,309,203 $602,428 126% The estimated accrued liability of $2,485,423 at December 31, 2008 was calculated using the State of Minnesota Schedule I form for lump sum pension plans. This results in excess (deficit) net assets available for benefits of ($502,729) as of December 31, 2008. The Hopkins Fire Department is a volunteer organization and therefore does not have payroll to disclose. OTHER POST EMPLOYMENT BENEFIT PLAN At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2007. 1. Plan Description The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who were hired prior to July 1, 1993 and have been with the City for at least ten years and are either (1) age 60 years 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 between 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 21 employees meet those eligibility requirements. As of December 31, 2009 there were approximately 90 active participants and 21 retired participants receiving benefits from the City's health plans. 2. Funding Policy The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2009, the City contributed $186,496 to the plan. 3. Annual OPEB Cost and Net OPEB Obligation The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. 67 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un -funded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution $ 236,804 Interest on Net OPEB Obligation 3,725 Adjustment to Annual Required Contribution (4,972) Annual OPEB Cost (Expense) 235,557 Contributions Made (186,496) Increase in Net OPEB Obligation 49,061 Net OPEB Obligation- Beginning of Year 82,786 Net OPEB Obligation- End of Year $ 131,847 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009: Fiscal Annual Year OPEB Ended Cost 12/31/2008 $ 236,804 12/31/2009 235,557 4. Funded Status and Funding Progress Percentage of Annual Net OPEB Cost OPEB Constributed Obligation 65.0% $ 82,786 79.2% 131,847 As of January 1, 2007, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $2,297,909. The annual payroll for active employees covered by the plan in the actuarial valuation was $5,621,587 for a ratio of UAAL to covered payroll of 40.88%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 5. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2007 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.5% investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based 68 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 on the funded level of the plan at the valuation date. The initial healthcare trend rate was 9%, reduced by decrements to an ultimate rate of 5% after nine years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2009 was 27 years. 12. REHABILITATION LOANS RECEIVABLE The City makes rehabilitation loans to residential and commercial entities within the City. Residential loans are made for 20 year periods at 3% interest. A mortgage against the property improved is required and City staff is responsible to follow-up any delinquent accounts. Loan repayments are made to Matrix Financial Services, a loan service bureau, which charges a fee of $5.95 per month per loan. Principal and interest are forwarded to the City monthly with loan collection and loan status reports. Rehabilitation loan activity is a function of the Economic Development Fund, the Hennepin County CDBG and the Housing Rehab Funds. Loans become due in full upon sale of property. Rehabilitation loans receivable amounted to $106,872 at December 31, 2009 and are recorded in the Economic Development and Hennepin County CDBG nonmajor special revenue funds. 13. CLAIMS AND LITIGATION The City had the usual and customary types of miscellaneous claims pending at year-end, which are of a minor nature and usually all covered by insurance carried for that purpose. The City carries a $1,000,000 Public Official Liability Insurance policy with public entity and employee endorsement. 14. 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. •' REQUIRED SUPPLEMENTARY INFORMATION 70 City of Hopkins, Minnesota REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress December 31, 2009 OTHER POSTEMPLOYMENT BENEFITS PLAN Actuarial Actuarial Value of Valuation Assets Date (a) 01/01/2007 $ Actuarial Accrued Liability Unfunded (AAL) AAL (b) (b -a) $ 2,297,909 $ 2,297,909 71 Funded Covered Ratio Payroll (a/b) (c ) - $ 5,621,587 UAAL as a Percentage of Covered Payroll ((b-a)/c) 40.88% CITY OF HOPKINS, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS STATEMENTS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. Expenditures are restricted by law or administrative regulation for specified purposes. State Chemical Assessment Fund — This fund is entirely supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. Real Estate Purchases and Sales Fund - This fund records the acquisition and disposition of various properties with the proceeds used to improve city buildings. Hennepin County CDBG - This fund accounts for receipt for Community Development Block Grant funds and the issuance of loans and grants for housing rehabilitation. Tax Increment Funds - These funds were established to record the use of tax increment receipts and bond proceeds as applied in various Tax Increment Districts. Paratransit Fund - This fund was established to account for the receipt of grants and rider fees and expenditures for transit service. Housing Rehab Fund - This fund was established to account for funds received under the Community Development Block Grant funds and Section 8. Parking Fund - This fund acquired land, improves and maintains parking lots and a parking ramp and collects monthly maintenance fees from users. Section 8 Housing Fund — This fund administers the HUD Section 8 Rental Assistance Program. Communications Fund - This fund records the City's share of a five -city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. Depot Coffee House Fund — This fund accounts for the operations of the coffee house business and the teen center operations that are supported through grant funds. Art Center Fund — This fund accounts for the operations of the Hopkins Art Center which is supported through leases, state aids, contributions, sales and intergovernmental transfers. 72 DEBT SERVICE FUNDS Debt Service Funds are established to finance and account for the payment of interest and principal on all general obligation debt other than debt issued for and serviced by a governmental enterprise. Provisions are made in the City's general property tax levy for money sufficient to meet the general obligation debt. 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 contributions for the acquisition of capital assets. Park Improvements Fund - This fund was established to record construction and improvement costs for park facilities. Capital Improvement Fund - This fund accounts for funds set aside for the construction and improvement of City facility and infrastructure. Permanent Improvement Revolving Fund - This fund accounts for resources accumulated and payments made for street improvements throughout the City. 73 City of Hopkins 1 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Special Revenue Funds LIABILITIES AND FUND BALANCE Liabilities Accounts payable State Real Estate Hennepin 667 Salaries payable Chemical Purchases County Housing Accrued interest payable Assessment & Sales CDBG Para -Transit Rehab ASSETS 110,804 3,424 16,920 Cash and investments $ $ 102,293 $ $ $ 682,972 Taxes receivable Special assessments receivable Accounts receivable 112,990 3,432 27,920 2,766 Rehabilitation loans receivable 50,385 Accrued interest receivable 225 1,505 Due from other governments 11,043 50,385 16,920 Total Assets $ 11,043 $ 102,518 $ 50,385 $ 16,920 $ 684,477 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 464 $ $ $ 10,431 $ 667 Salaries payable 1,722 569 2,099 Accrued interest payable 8 Due to other funds 110,804 3,424 16,920 Due to other governments Deferred revenue Advanced from other funds Total Liabilities 112,990 3,432 27,920 2,766 Fund balances: Reserved for: Rehab loans receivable 50,385 Tax increment districts Debt service Unreserved designated for: Economic development 85,000 Construction projects Sustainability project Unreserved undesignated: (101,947) 102,518 (3,432) (11,000) 596,711 Total Fund Balances (101,947) 102,518 46,953 (11,000) 681,711 Total Liabilities and Fund Balance $ 11,043 $ 102,518 $ 50,385 $ 16,920 $ 684,477 74 City of Hopkins 2of8 Combining Balance Sheet Nonmajor Governmental Funds December 31. 2009 Special Revenue Funds LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 369 109 $ 7,496 $ Depot $ 9,969 Salaries payable 1,687 Section 8 375 Coffee Art Accrued interest payable Parking Housing Communications House Center ASSETS 577,597 Cash and investments $ 247,446 91,327 $ 356,896 $ 40,032 $ 100 Taxes receivable 31,294 20,079 Special assessments receivable 300,000 Accounts receivable 33,350 109 49,285 336 20,277 Rehabilitation loans receivable Accrued interest receivable 543 201 784 91 Due from other governments 1,605 Total Assets $ 249,594 91,528 $ 406,965 $ 40,459 $ 20,377 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 369 109 $ 7,496 $ 2,174 $ 9,969 Salaries payable 1,687 375 1,664 10,977 Accrued interest payable Due to other funds 577,597 Due to other governments 3 106 Deferred revenue 31,294 20,079 Advanced from other funds 300,000 Total Liabilities 33,350 109 7,871 3,841 918,728 Fund balances: Reserved for: Rehab loans receivable Tax increment districts Debt service Unreserved designated for: Economic development Construction projects Sustainability project 3,578 Unreserved undesignated: 216,244 91,419 399,094 33,040 (898,351) Total Fund Balances 216,244 91,419 399,094 36,618 (898,351) Total Liabilities and Fund Balance $ 249,594 91,528 $ 406,965 $ 40,459 $ 20,377 75 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Special Revenue Funds 76 3of8 Tax Tax Tax Increment Tax Tax Increment Increment District Increment Increment District District Oaks of District District R.L. Johnson Sonoma Mainstreet Business District Super Valu ASSETS Cash and investments $ 45,559 $ 9,830 $ 344,471 $ $ 314,481 Taxes receivable Special assessments receivable Accounts receivable 5,292 Rehabilitation loans receivable Accrued interest receivable 100 65 757 691 Due from other governments Total Assets $ 45,659 $ 9,895 $ 345,228 $ $ 320,464 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 18 $ 17 $ 1,558 $ $ 3,967 Salaries payable Accrued interest payable Due to other funds Due to other governments Deferred revenue Advanced from other funds 316,839 Total Liabilities 18 316,856 1,558 3,967 Fund balances: Reserved for: Rehab loans receivable Tax increment districts 45,641 343,670 316,497 Debt service Unreserved designated for: Economic development Construction projects Sustainability project Unreserved undesignated: (306,961) Total Fund Balances 45,641 (306,961) 343,670 316,497 Total Liabilities and Fund Balance $ 45,659 $ 9,895 $ 345,228 $ $ 320,464 76 3of8 City of Hopkins 4of8 Combining Balance Sheet Nonmajor Governmental Funds December 31. 2009 Special Revenue Funds LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 904 $ Tax 39,718 Salaries payable Tax Increment 19,093 Accrued interest payable Increment District 450 Due to other funds District Marketplace' 909,581 Due to other governments 5th Ave Flats & Main Total ASSETS 51,373 Cash and investments $ $ $ 2,235,407 Taxes receivable 185,896 17,861 1,637,163 Special assessments receivable Accounts receivable 121,942 197,132 Rehabilitation loans receivable 50,385 Accrued interest receivable 4,962 Due from other governments 29,568 Total Assets $ 121,942 $ $ 2,517,454 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 904 $ 1,575 $ 39,718 Salaries payable 19,093 Accrued interest payable 406 36 450 Due to other funds 184,586 16,250 909,581 Due to other governments 109 Deferred revenue 51,373 Advanced from other funds 616,839 Total Liabilities 185,896 17,861 1,637,163 Fund balances: Reserved for: Rehab loans receivable 50,385 Tax increment districts 705,808 Debt service Unreserved designated for: Economic development 85,000 Construction projects Sustainability project 3,578 Unreserved undesignated: (63,954) (17,861) 35,520 Total Fund Balances (63,954) (17,861) 880,291 Total Liabilities and Fund Balance $ 121,942 $ - $ 2,517,454 77 78 City of Hopkins 5of8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Debt Service Funds Park and Recreational Refunding D Improvement Bonds of Improvement Tax Housing Revolving 1993, Refunding Revolving Increment Bonds of Bonds of Bonds of Bonds of Bonds of 1995 1999 2001 2002 2002 ASSETS Cash and investments $ 132,040 $ 108,157 $ 150,343 $ 127,646 $ 170,536 Taxes receivable 1,095 6,215 2,355 Special assessments receivable 201,311 Accounts receivable Rehabilitation loans receivable Accrued interest receivable 290 238 331 281 375 Due from other governments Total Assets $ 333,641 $ 109,490 $ 156,889 $ 130,282 $ 170,911 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 91 $ 57 $ 93 $ 72 $ 88 Salaries payable Accrued interest payable Due to other funds Due to other governments Deferred revenue 200,676 790 4,694 1,665 Advanced from other funds - Total Liabilities 200,767 847 4,787 1,737 88 Fund balances: Reserved for: Rehab loans receivable - Tax increment districts Debt service 132,874 108,643 152,102 128,545 170,823 Unreserved designated for: Economic development Construction projects Sustainability project Unreserved undesignated: Total Fund Balances 132,874 108,643 152,102 128,545 170,823 Total Liabilities and Fund Balance $ 333,641 $ 109,490 $ 156,889 $ 130,282 $ 170,911 78 ASSETS Cash and investments Taxes receivable Special assessments receivable Accounts receivable Rehabilitation loans receivable Accrued interest receivable Due from other governments Total Assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Salaries payable Accrued interest payable Due to other funds Due to other governments Deferred revenue Advanced from other funds Total Liabilities Fund balances: Reserved for: Rehab loans receivable Tax increment districts Debt service Unreserved designated for: Economic development Construction projects Sustainability project Unreserved undesignated: Total Fund Balances Total Liabilities and Fund Balance City of Hopkins 6of8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Debt Service Funds $ 79 $ 5,321 5,400 408,145 408,145 41 $ 414 $ 73 $ 67 14,912 41 414 47,917 476,865 125,815 320,619 47,917 476,865 125,815 320,619 $ 413,545 $ 47,958 $ 477,279 $ 125,888 $ 335,598 79 Tax Tax Taxable Tax Increment Increment Increment HRA Lease Bonds of 1996C Bonds of 1997 Bonds of 1996D Capital Revemue Refunding Refunding Refunding Improvement Bonds of Bonds of Bonds of Bonds of Bonds of 2003 2005A 2005A 2005B 2007A $ 405,206 $ 47,853 $ 476,232 $ 125,612 $ 312,487 7,953 22,423 386 105 1,047 276 688 $ 413,545 $ 47,958 $ 477,279 $ 125,888 $ 335,598 $ 79 $ 5,321 5,400 408,145 408,145 41 $ 414 $ 73 $ 67 14,912 41 414 47,917 476,865 125,815 320,619 47,917 476,865 125,815 320,619 $ 413,545 $ 47,958 $ 477,279 $ 125,888 $ 335,598 79 City of Hopkins 7of8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Debt Service Funds Housing Housing Improvement Improvement Bonds of Bonds of Improvement 1999A 1999B Revolving Refunding Refunding Bonds of Bonds of Bonds of 2007B 2009B 2009B Total ASSETS Cash and investments $ 188,559 $ 1,011,304 $ 1,795,000 $ 5,050,975 Taxes receivable 5,629 45,670 Special assessments receivable 201,311 Accounts receivable Rehabilitation loans receivable Accrued interest receivable 415 2,225 3,952 10,609 Due from other governments Total Assets $ 194,603 $ 1,013,529 $ 1,798,952 $ 5,308,565 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 71 $ 57 $ 101 $ 1,304 Salaries payable Accrued interest payable Due to other funds Due to other governments Deferred revenue 3,582 231,640 Advanced from other funds Total Liabilities 3,653 57 101 232,944 Fund balances: Reserved for: Rehab loans receivable Tax increment districts Debt service 190,950 1,013,472 1,798,851 5,075,621 Unreserved designated for: Economic development Construction projects Sustainability project Unreserved undesignated: Total Fund Balances 190,950 1,013,472 1,798,851 5,075,621 Total Liabilities and Fund Balance $ 194,603 $ 1,013,529 $ 1,798,952 $ 5,308,565 City of Hopkins Combining Balance Sheet Nonmajor Governmental Funds December 31. 2009 Capital Project Funds 8of8 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 380 $ $ Permanent 102,498 $ Total Salaries payable Capital Improvement Non -major Accrued interest payable Park Improvement Revolving 1,053 Governmental Due to other funds Improvements Fund Fund Total Funds ASSETS 109 Cash and investments $ 246,362 $ 234,630 $ 60,856 $ 541,848 $ 7,828,230 Taxes receivable 2,399 2,399 48,069 Special assessments receivable 380 1,792 1,071,704 1,071,704 1,273,015 Accounts receivable 46 46 197,178 Rehabilitation loans receivable 50,385 Accrued interest receivable 541 645 1,186 16,757 Due from other governments 29,568 Total Assets $ 246,903 $ 237,674 $ 1,132,606 $ 1,617,183 $ 9,443,202 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 380 $ $ 102,118 $ 102,498 $ 143,520 Salaries payable 19,093 Accrued interest payable 1,053 1,053 1,503 Due to other funds 909,581 Due to other governments 109 Deferred revenue 1,792 1,061,252 1,063,044 1,346,057 Advanced from other funds 616,839 Total Liabilities 380 1,792 1,164,423 1,166,595 3,036,702 Fund balances: Reserved for: Rehab loans receivable 50,385 Tax increment districts 705,808 Debt service 5,075,621 Unreserved designated for: Economic development 85,000 Construction projects 235,882 235,882 235,882 Sustainability project 3,578 Unreserved undesignated: 246,523 (31,817) 214,706 250,226 Total Fund Balances 246,523 235,882 (31,817) 450,588 6,406,500 Total Liabilities and Fund Balance $ 246,903 $ 237,674 $ 1,132,606 $ 1,617,183 $ 9,443,202 81 Revenues Property tax Tax increment Special assessments Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings Other Total Revenues Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) Net change in fund balances Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 City of Hopkins 1 of 8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Special Revenue Funds State Real Estate Chemical Purchases Assessment & Sales 56,965 765,728 96,568 102,518 $ 46,953 $ 3,700 1,665 4,203 _ 100,771 5,365 156,411 Hennepin County Housing CDBG Para -Transit Rehab 100,227 9,265 11,518 126,328 1,350 9,934 95,586 17,973 78 (73,613) 4,015 (10,012) (16,836) (84,017) 5,836 (73,613) 4,015 (10,012) (11,000) (84,017) (28,334) 98,503 56,965 765,728 $ (101,947) $ 102,518 $ 46,953 $ (11,000) $ 681,711 82 Revenues Property tax Tax increment Special assessments Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings Other Total Revenues Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) Net change in fund balances Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Special Revenue Funds 70,510 55,886 28,771 109 114,470 660,974 58,587 15,466 84,657 (22,207) 147 109 129,097 129,936 661,121 1,364 77,978 (44,463) (233,689) 147,920 (86,920) 341 (86,920) 148,261 (22,207) 1,364 (8,942) (44,463) (85,428) 238,451 90,055 408,036 81,081 (812,923) $ 216,244 $ 91,419 $ 399,094 $ 36,618 $ (898,351) 83 2of8 Depot Section 8 Coffee Art Parking Housing Communications House Center 200,908 39,374 60,191 399,138 18,932 4,144 1,473 6,167 785 24,497 28,294 62,450 1,473 207,075 85,473 427,432 70,510 55,886 28,771 109 114,470 660,974 58,587 15,466 84,657 (22,207) 147 109 129,097 129,936 661,121 1,364 77,978 (44,463) (233,689) 147,920 (86,920) 341 (86,920) 148,261 (22,207) 1,364 (8,942) (44,463) (85,428) 238,451 90,055 408,036 81,081 (812,923) $ 216,244 $ 91,419 $ 399,094 $ 36,618 $ (898,351) 83 2of8 City of Hopkins 3of8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Special Revenue Funds 84 Tax Tax Tax Increment Tax Tax Increment Increment District Increment Increment District District Oaks of District District R.L. Johnson Sonoma Mainstreet Business District Super Valu Revenues Property tax $ $ $ $ $ Tax increment 601,604 8,764 149,998 49,763 772,288 Special assessments Intergovernmental revenue 9,614 Fees, licenses and permits Charges for services Fines - Investment earnings 522 296 5,327 380 4,516 Other 10,292 8,298 Total Revenues 602,126 19,352 164,939 50,143 785,102 Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing 268,414 1,276 4,812 81,335 823,135 Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures 268,414 1,276 4,812 81,335 823,135 Excess (deficiency) of revenues over expenditures 333,712 18,076 160,127 (31,192) (38,033) Other Financing Sources (Uses): Transfers in Transfers out (214,000) (133,000) (188,000) Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) (214,000) (133,000) (188,000) Net change in fund balances 119,712 18,076 27,127 (31,192) (226,033) Fund Balance (Deficit) - January 1 (74,071) (325,037) 316,543 31,192 542,530 Fund Balance (Deficit) - December 31 $ 45,641 $ (306,961) $ 343,670 $ $ 316,497 84 Revenues Property tax Tax increment Special assessments Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings Other Total Revenues Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) Net change in fund balances Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Special Revenue Funds Tax Tax Increment Increment 5th Avenue Marketplace Flats & Main Total 1,944 1,584,361 206,409 200,908 511,668 18,932 36,793 84,084 159,719 86,028 2,718,790 70,510 212,297 126,328 28,771 86,648 21,184 1,393,783 775,444 92,026 2,971 183 3,379 89,619 21,367 2,702,538 (3,591) (21,367) 16,252 153,756 (621,920) 341 (3,591) (21,367) (451,571) (60,363) 3,506 1,331,862 $ (63,954) $ (17,861) $ 880,291 85 4of8 Revenues Property tax Tax increment Special assessments Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings Other Total Revenues Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) Net change in fund balances Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Debt Service Funds Housing Bonds of 1995 98,612 956 Improvement Revolving Bonds of 25,218 $ 406 Park and Recreational Refunding D Bonds of 1993, Refunding Bonds of 2001 126,076 $ 744 Improvement Revolving Bonds of 57,215 $ 626 5of8 Tax Increment Bonds of 783 783 91 57 93 72 88 80,000 100,000 140,000 100,000 100,000 18,035 7,848 11,676 17,888 87,689 98,126 107,905 151,769 117,960 187,777 1,442 (82,281) (24,949) (60,119) (186,994) 75,000 58,219 188,000 75,000 58,219 188,000 1,442 (7,281) (24,949) (1,900) 1,006 131,432 115,924 177,051 130,445 169,817 $ 132,874 $ 108,643 $ 152,102 $ 128,545 $ 170,823 0 Revenues Property tax Tax increment Special assessments Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings Other Total Revenues Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) Net change in fund balances Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Debt Service Funds 41 6of8 Tax Tax Taxable Tax 125,000 Increment Increment Increment 85,000 HRA Lease Bonds of 1996C Bonds of 1997 Bonds of 1996D Capital Revenue Refunding Refunding Refunding Improvement Bonds of Bonds of Bonds of Bonds of Bonds of 2003 2005A 2005A 2005B 2007A $ 218,216 $ $ $ $ 622,637 1,120 538 5,030 737 (94,813) 79 41 414 73 67 125,000 5,000 185,000 85,000 470,000 95,033 18,515 23,636 10,477 391,500 220,112 23,556 209,050 95,550 861,567 (776) (23,018) (204,020) (94,813) (238,930) - 28,000 214,000 105,000 145,000 28,000 105,000 - 214,000 145,000 (776) 4,982 9,980 10,187 (93,930) 408,921 42,935 466,885 115,628 414,549 $ 408,145 $ 47,917 $ 476,865 $ 125,815 $ 320,619 87 City of Hopkins 7of8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Debt Service Funds Revenues Housing Housing Improvement Improvement $ 169,719 $ Bonds of Bonds of Improvement 1999A 1999B Revolving Refunding Refunding Bonds of Bonds of Bonds of 2007B 2009B 2009B Total Revenues Property tax $ 169,719 $ $ $ 1,219,081 Tax increment Special assessments 98,612 Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings 366 2,900 3,952 18,158 Other Total Revenues 170,085 2,900 3,952 1,335,851 Expenditures Current: General government 71 57 100 1,303 Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement 160,000 1,550,000 Interest and fiscal fees 80,167 762,464 Bond issuance costs 15,556 19,416 34,972 Total Expenditures 240,238 15,613 19,516 2,348,739 Excess (deficiency) of revenues over expenditures (70,153) (12,713) (15,564) (1,012,888) Other Financing Sources (Uses): Transfers in 71,900 885,119 Transfers out Sale of capital assets Refunding bonds issued 1,035,000 1,830,000 2,865,000 Discount on refunding debt (8,815) (15,585) (24,400) Total Other Financing Sources (Uses) 71,900 1,026,185 1,814,415 3,725,719 Net change in fund balances 1,747 1,013,472 1,798,851 2,712,831 Fund Balance (Deficit) - January 1 189,203 2,362,790 Fund Balance (Deficit) - December 31 $ 190,950 $ 1,013,472 $ 1,798,851 $ 5,075,621 0 Revenues Property tax Tax increment Special assessments Intergovernmental revenue Fees, licenses and permits Charges for services Fines Investment earnings Other Total Revenues Expenditures Current: General government Public safety Health and welfare Highways and streets Urban redevelopment and housing Recreation Capital outlay Debt Service: Principal retirement Interest and fiscal fees Bond issuance costs Total Expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses): Transfers in Transfers out Sale of capital assets Refunding bonds issued Discount on refunding debt Total Other Financing Sources (Uses) Net change in fund balances Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 City of Hopkins Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Capital Project Funds Capital Park Improvement Improvements Fund Permanent Improvement Revolving Fund Total 8of8 Total Non -major Governmental $ $ 95,376 $ $ 95,376 $ 1,314,457 1,584,361 395,636 395,636 494,248 206,409 200,908 511,668 18,932 4,740 4,345 9,085 64,036 3,226 173,634 176,860 336,579 7,966 99,721 569,270 676,957 4,731,598 71,813 212,297 126,328 2,212 2,212 30,983 1,393,783 775,444 119,379 62,376 932,008 1,113,763 1,205,789 1,550,000 1,614 1,614 767,457 34,972 119,379 62,376 935,834 1,117,589 6,168,866 (111,413) 37,345 (366,564) (440,632) (1,437,268) 1,038,875 (50,000) (205,119) (255,119) (877,039) 341 2,865,000 (24,400) (50,000) (205,119) (255,119) 3,002,777 (111,413) (12,655) (571,683) (695,751) 1,565,509 357,936 248,537 539,866 1,146,339 4,840,991 $ 246,523 $ 235,882 $ (31,817) $ 450,588 $ 6,406,500 City of Hopkins State Chemical Assessment Team Fund Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Variance with Original and final budget final positive budget Actual (negative) Revenues: Intergovernmental revenue: State grant Other Total Revenues Expenditures $ 45,000 $ 45,000 96,568 $ 51,568 4,203 4,203 100,771 55,771 Salaries and employee benefits 24,336 51,767 (27,431) Materials, supplies and services 20,664 104,644 (83,980) Capital outlay - 17,973 (17,973) Total Expenditures 45,000 174,384 (129,384) Net change in fund deficit - (73,613) (73,613) Fund Deficit - January 1 (28,334) (28,334) Fund Deficit - December 31 $ (28,334) $ (101,947) $ (73,613) 90 City of Hopkins Real Estate Purchases and Sales Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Charges for services Investment earnings Total Revenues Expenditures: Materials, supplies and services Net change in fund balance Fund Balance - January 1 Year Ended December 31, 2009 Original and final budget Actual Variance with final budget positive (negative) $ 3,700 $ 3,700 $ - 2,100 1,665 (435) 5,800 5,365 (435) 1,350 (1,350) 5,800 4,015 98,503 98,503 (1,785) Fund Balance - December 31 $ 104,303 $ 102,518 $ (1,785) 91 City of Hopkins Para -Transit Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Intergovernmental: State grant (Para -Transit) Charges for services Total Revenues Expenditures: Salaries and employee benefits Materials, supplies and services Total Expenditures Other Financing Sources: Transfer from the General Fund Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 Year Ended December 31, 2009 $ - $ (11,000) $ (11,000) 92 Variance with Original and final budget final positive budget Actual (negative) $ 101,522 $ 100,227 $ (1,295) 16,000 9,265 (6,735) 117,522 109,492 (8,030) 19,193 19,500 (307) 107,756 106,828 928 126,949 126,328 621 9,427 5,836 (3,591) - (11,000) (11,000) $ - $ (11,000) $ (11,000) 92 City of Hopkins Housing Rehab Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Investment earnings Other Total Revenues Expenditures: Salaries and employee benefits Materials, supplies and services Total Expenditures Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 Year Ended December 31, 2009 93 Variance with Original and final budget final positive budget Actual (negative) $ 30,000 $ 11,518 $ (18,482) - 51 51 30,000 11,569 (18,431) 72,170 76,828 (4,658) 25,103 18,758 6,345 97,273 95,586 1,687 (67,273) (84,017) (16,744) 765,728 765,728 - $ 698,455 $ 681,711 $ (16,744) 93 City of Hopkins Parking Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Court fines Charges for services Investment earnings Total Revenues Expenditures: Salaries and employee benefits Materials, supplies and services Capital outlay Total Expenditures Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 Year Ended December 31, 2009 94 Variance with Original and final budget final positive budget Actual (negative) $ 20,000 $ 18,932 $ (1,068) 58,000 39,374 (18,626) 7,500 4,144 (3,356) 85,500 62,450 (23,050) 45,520 42,931 2,589 49,378 41,726 7,652 10,000 - 10,000 104,898 84,657 20,241 (19,398) (22,207) (2,809) 238,451 238,451 - $ 219,053 $ 216,244 $ (2,809) 94 City of Hopkins Communications Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Revenues: Franchise fees Investment earnings Total Revenues Expenditures: Salaries and employee benefits Materials, supplies and services Capital outlay Total Expenditures Excess of revenues over expenditures Other Financing Uses: Transfer to Art Center Fund Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 (86,920) (86,920) (20,526) (8,942) 11,584 408,036 408,036 - $ 387,510 $ 399,094 $ 11,584 95 Variance with Original and final budget final positive budget Actual (negative) $ 170,000 $ 200,908 $ 30,908 12,880 6,167 (6,713) 182,880 207,075 24,195 12,334 13,423 (1,089) 59,152 57,087 2,065 45,000 58,587 (13,587) 116,486 129,097 (12,611) 66,394 77,978 11,584 (86,920) (86,920) (20,526) (8,942) 11,584 408,036 408,036 - $ 387,510 $ 399,094 $ 11,584 95 City of Hopkins Depot Coffee House Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Charges for services Investment earnings Contributions Other Total Revenues Expenditures: Salaries and employee benefits Materials, supplies and services Capital outlay Total Expenditures Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 Year Ended December 31, 2009 Original and final budget Actual Variance with final budget positive (negative) $ 58,500 $ 60,191 $ 1,691 2,000 785 (1,215) 45,000 22,906 (22,094) 800 1,591 791 106,300 85,473 (20,827) 85,142 74,179 10,963 56,322 40,291 16,031 10,000 15,466 (5,466) 151,464 129,936 21,528 (45,164) (44,463) 81,081 81,081 $ 35,917 $ 36,618 $ Dig 701 701 City of Hopkins Art Center Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Expenditures Salaries and employee benefits 372,615 368,697 Variance with Materials, supplies and services Original and 292,277 final budget Debt service: final positive Interest budget Actual (negative) Revenues: 660,357 661,121 (764) Intergovernmental: Other Financing Sources State grant $ 50,000 $ - $ (50,000) Charges for services 435,522 399,138 (36,384) Other 62,500 28,294 (34,206) Total Revenues 548,022 427,432 (120,590) Expenditures Salaries and employee benefits 372,615 368,697 3,918 Materials, supplies and services 287,742 292,277 (4,535) Debt service: Interest - 147 (147) Total Expenditures 660,357 661,121 (764) Other Financing Sources Transfer from other funds 147,920 147,920 - Sale of capital assets - 341 (341) Total Other Financing Sources (Uses) 147,920 148,261 (341) Net change in fund balance (deficit) 35,585 (85,428) (121,013) Fund Deficit - January 1 (812,923) (812,923) - Fund Deficit - December 31 $ (777,338) $ (898,351) $ (121,013) 97 City of Hopkins Tax Increment 2.1 - R.L. Johnson Company Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 98 Variance with Original and final budget final positive budget Actual (negative) Revenues: Taxes: Tax increment $ 375,000 $ 601,604 $ 226,604 Investment earnings 2,000 522 (1,478) Total Revenues 377,000 602,126 225,126 Expenditures: Materials, supplies and services 13,001 13,552 (551) Capital outlay: Site improvements - R.L. Johnson 170,588 254,862 (84,274) Total Expenditures 183,589 268,414 (84,825) Other Financing Uses Transfer to debt service, 1997 - HRA (213,000) (214,000) (1,000) Net change in fund balance (19,589) 119,712 139,301 Fund Balance - January 1 (74,071) (74,071) - Fund Balance - December 31 $ (93,660) $ 45,641 $ 139,301 98 City of Hopkins Tax Increment 2.6 Sonoma Project Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Revenues: Taxes: Tax increment Investment earnings Other Total Revenues Expenditures: Materials, supplies and services Net change in fund balance Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 Original and final budget Actual Variance with final budget positive (negative) $ 10,000 $ 8,764 $ (1,236) 500 296 (204) 9,024 10,292 1,268 19,524 19,352 (172) 1,460 1,276 18,064 18,076 (325,037) (325,037) $ (306,973) $ (306,961) $ 99 184 12 12 City of Hopkins Tax Increment 2.9 Oaks of Mainstreet Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Revenues: Taxes Tax increment Intergovernmenal Market value aid credit Investment earnings Total Revenues Expenditures Materials, supplies and services Other Financing Uses: Transfer out for debt service Net change in fund balance Fund Balance - January 1 Fund Balance - December 31 5,027 4,812 (133,000) (133,000) 31,473 27,127 215 (4,346) 316,543 316,543 - $ 348,016 $ 343,670 $ (4,346) 100 Variance with Original and final budget final positive budget Actual (negative) $ 155,000 $ 149,998 $ (5,002) 10,500 9,614 (886) 4,000 5,327 1,327 169,500 164,939 (4,561) 5,027 4,812 (133,000) (133,000) 31,473 27,127 215 (4,346) 316,543 316,543 - $ 348,016 $ 343,670 $ (4,346) 100 City of Hopkins Tax Increment 2.10 Business District Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Taxes: Tax increment Investment earnings Total Revenues Expenditures: Materials, supplies and services Net change in fund balance Fund Balance - January 1 Year Ended December 31, 2009 Fund Balance - December 31 $ 31,517 $ - $ (31,517) 101 Variance with Original and final budget final positive budget Actual (negative) $ 90,000 $ 49,763 $ (40,237) 1,000 380 (620) 91,000 50,143 (40,857) 90,675 81,335 9,340 325 (31,192) (31,517) 31,192 31,192 - Fund Balance - December 31 $ 31,517 $ - $ (31,517) 101 City of Hopkins Tax Increment 2.11 Super Valu Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Revenues: Taxes: Tax Increments Investment earnings Other Total Revenues Expenditures: Materials, supplies and services Capital outlay: Site Improvements Total Expenditures Other Financing Sources (Uses): Transfer out for debt service Net change in fund balance (deficit) Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 Variance with Original and final budget final positive budget Actual (negative) $ 550,000 $ 772,288 $ 222,288 40,000 4,516 (35,484) - 8,298 8,298 590,000 785,102 195,102 32,928 42,774 (9,846) 2,000,000 780,361 1,219,639 2,032,928 823,135 1,209,793 (188,000) (188,000) (1,630,928) (226,033) 1,404, 895 542,530 542,530 - $ (1,088,398) $ 316,497 $ 1,404,895 102 City of Hopkins Tax Increment 1.3 - 5th Avenue Flats Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Revenues: Tax increment Other Total Revenues Expenditures: Materials, supplies and services Capital outlay: Land Debt service: Interest Total Expenditures Other Financing Sources (Uses): Transfer in from tax increment Net change in fund deficit Variance with Original and final budget final positive budget Actual (negative) $ 2,000 $ 1,944 $ (56) 5,000 84,084 79,084 7,000 86,028 79,028 11,900 86,648 (74,748) 2,000,000 - 2,000,000 - 2,971 (2,971) 2,011,900 89,619 1,922,281 2,000,000 (4,900) - (2,000,000) (3,591) 1,309 Fund Deficit - January 1 (60,363) (60,363) - Fund Deficit - December 31 $ (65,263) $ (63,954) $ 1,309 103 City of Hopkins Tax Increment 1.4 - Marketplace & Main Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Revenues: Tax increment Expenditures: Materials, supplies and services Debt service: Interest Total Expenditures Net change in fund balance (deficit) Fund Balance (Deficit) - January 1 Fund Balance (Deficit) - December 31 Original and final budget Actual Variance with final budget positive (negative) $ 2,000 $ - $ (2,000) 1,975 21,184 (19,209) - 183 (183) 1,975 21,367 (19,392) 25 (21,367) (21,392) 3,506 3,506 - $ 3,531 $ (17,861) $ (21,392) 104 CITY OF HOPKINS, MINNESOTA 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. The Authority for these types of funds is derived from Section 11.01 of the City Charter, which allows for utility or other public service enterprise funds. The City has six Enterprise Funds, two of which are considered to be nonmajor, they are: Refuse Utility Fund Housing Authority Fund 105 City of Hopkins Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2009 LIABILITIES Current Liabilities Accounts payable Nonmajor Business -type Activities -Enterprise Funds 20,416 51,170 Salaries payable Nonmajor - Refuse Housing Proprietary Funds 20,448 Utility Authority Total ASSETS 5,442 Compensated absences 11,913 Current assets 24,663 Total Current Liabilities 53,502 Cash and investments $ 323,173 $ 607,187 $ 930,360 Accounts receivable 41,389 725 42,114 Accrued interest receivable 710 - 710 Due from other governments - 34,363 34,363 Inventory 2,031 - 2,031 Prepaid expenses - 17,104 17,104 Total current assets 367,303 659,379 1,026,682 1,215,522 Noncurrent assets Unrestricted 308,538 600,790 Capital Assets: Total net assets $ 763,642 $ 1,816,312 $ Land - 119,392 119,392 Construction in progress - 277,446 277,446 Buildings and structures 302,727 3,269,661 3,572,388 Distribution system 2,584 - 2,584 Machinery and equipment 622,178 38,172 660,350 Less accumulated depreciation (472,385) (2,489,149) (2,961,534) Total noncurrent assets 455,104 1,215,522 1,670,626 Total Assets 822,407 1,874,901 2,697,308 LIABILITIES Current Liabilities Accounts payable 30,754 20,416 51,170 Salaries payable 5,393 - 5,393 Due to other funds - 20,448 20,448 Due to other governments 5,442 - 5,442 Compensated absences 11,913 12,750 24,663 Total Current Liabilities 53,502 53,614 107,116 Noncurrent Liabilities: Compensated absences 1,324 - 1,324 Net OPEB liability 3,939 4,975 8,914 5,263 4,975 10,238 Total Liabilities 58,765 58,589 117,354 NET ASSETS Invested in capital assets 455,104 1,215,522 1,670,626 Unrestricted 308,538 600,790 909,328 Total net assets $ 763,642 $ 1,816,312 $ 2,579,954 106 City of Hopkins Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Enterprise Funds For the Year Ended December 31, 2009 Operating revenues: Charges for services Other Total Operating Revenues Operating expenses: Cost of sales and service Administration Depreciation Total Operating Expenses Operating loss Nonoperating revenues (expenses): Investment earnings Intergovernmental grants Gain on sale of assets Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Transfers out Change in net assets Total net assets - beginning Total net assets - ending Nonmajor Business -type Activities -Enterprise Funds 597,076 275,790 Nonmajor Refuse Housing Proprietary Funds Utility Authority Total $ 809,755 $ 228,915 $ 1,038,670 11,873 50,945 62,818 821,628 279,860 1,101,488 597,076 275,790 872,866 141,956 87,257 229,213 47,490 165,495 212,985 786,522 528,542 1,315,064 35,106 (248,682) (213,576) 5,010 5,010 24,581 238,461 263,042 605 605 30,196 238,461 268,657 65,302 (10,221) 55,081 (25,000) (25,000) 40,302 (10,221) 30,081 723,340 1,826,533 2,549,873 $ 763,642 $ 1,816,312 $ 2,579,954 107 City of Hopkins Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended December 31, 2009 Cash Flows from Operating Activities Receipts from customers and users Internal activity -payments from other funds Payments to suppliers Payments to employees Payments for interfund services used Net cash provided (used) by operating activities Nonmajor Business -type Activities -Enterprise Funds Nonmajor Refuse Housing Proprietary Funds Utility Authority Total $ 819,134 $ 324,408 $ 1,143,542 1,895 1,895 (354,171) (318,043) (672,214) (244,949) (83,889) (328,838) (141,956) (141,956) 78,058 (75,629) 2,429 Cash Flows from Noncapital Financing Activities Intergovernmental grants 24,581 238,461 263,042 Transfers (to)from other funds (25,000) (25,000) Net cash provided (used) by noncapital and related financing activities (419) 238,461 238,042 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets Proceeds from sales of capital assets Net cash provided (used) by capital and related financing activities Cash Flows From Investing Activities Interest received Net increase (decrease) in cash and investments Cash and Investments - January 1 Cash and Investments - December 31 Reconciliation of operating loss to net cash used by operating activities: Operating income (loss) Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation expense (Increase) decrease in: Accounts receivable Due from other governments Inventory Prepaid expense Increase (decrease) in: Accounts, compensated absences and accrued interest payable Due to other funds Net Cash Used by Operating Activities (126,917) (126,917) 605 605 605 (126,917) (126,312) 5,131 5,131 83,375 35,915 119,290 239,798 571,272 811,070 $ 323,173 $ 607,187 $ 930,360 $ 35,106 $ (248,682) $ (213,576) 47,490 165,495 212,985 (2,494) (334) (2,828) - 44,882 44,882 96 - 96 - 258 258 (2,140) (39,143) (41,283) - 1,895 1,895 $ 78,058 $ (75,629) $ 2,429 CITY OF HOPKINS, MINNESOTA 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. 109 City of Hopkins Combining Statement of Net Assets Internal Service Funds December 31, 2009 110 Internal Equipment Insurance Employee Service Replacement Risk Benefits Fund Total ASSETS Current assets: Cash and investments $ 1,172,437 $ 135,396 $ 969,495 $ 2,277,328 Accounts receivable - 7,013 - 7,013 Advance to other funds 91,249 - - 91,249 Accrued interest receivable 2,572 298 2,034 4,904 Total current assets 1,266,258 142,707 971,529 2,380,494 Property and equipment Machinery and equipment 6,656,718 - - 6,656,718 Less accumulated depreciation (3,794,751) - - (3,794,751) Net property and equipment 2,861,967 - - 2,861,967 Total Assets 4,128,225 142,707 971,529 5,242,461 LIABILITIES Current Liabilities: Accounts payable 10,419 2,788 - 13,207 Accrued interest payable 3,579 - - 3,579 Compensated absences payable - - 650,823 650,823 Capital lease - current 35,559 - - 35,559 Total Current Liabilities 49,557 2,788 650,823 703,168 Noncurrent Liabilities Compensated absences payable - - 195,664 195,664 Capital lease payable 355,556 - - 355,556 Total Noncurrent Liabilities 355,556 - 195,664 551,220 Total Liabilities 405,113 2,788 846,487 1,254,388 NET ASSETS Invested in capital assets, net of related debt 2,470,852 - - 2,470,852 Unrestricted 1,252,260 139,919 125,042 1,517,221 Total Net Assets $ 3,723,112 $ 139,919 $ 125,042 $ 3,988,073 110 CITY OF HOPKINS, MINNESOTA Combining Statement of Revenues Expenses, and Changes in Net Assets Internal Service Funds Year Ended December 31, 2009 111 Equipment Insurance Employee Replacement Risk Benefits Total Operating revenues: Charges for services $ 287,463 $ 42,578 $ - $ 330,041 Operating expenses (excluding depreciation): Materials, supplies and services 25,248 22,404 - 47,652 Operating income before depreciation 262,215 20,174 - 282,389 Depreciation expense 479,987 - - 479,987 Operating loss (217,772) 20,174 - (197,598) Nonoperating revenues (expenses): Miscellaneous revenue 52,545 - - 52,545 Investment earnings 18,519 1,527 15,345 35,391 Gain on sale of property and equipment 10,258 - - 10,258 Interest expense (20,022) - - (20,022) Total nonoperating revenues 61,300 1,527 15,345 78,172 Change in net assets (156,472) 21,701 15,345 (119,426) Fund Equity: Net assets - January 1 3,879,584 118,218 109,697 4,107,499 Net assets - December 31 $ 3,723,112 $ 139,919 $ 125,042 $ 3,988,073 111 City of Hopkins Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2009 Cash Flows from Operating Activities Receipts from customers and users Receipts from interfund services provided Payments to suppliers Payments for interfund services used Net cash provided (used) by operating activities Cash Flows from Noncapital Financing Activities Miscellaneous revenue Cash Flows from Capital and Related Financing Activities: Purchases of capital assets Proceeds from sales of capital assets Interest and other payments Capital lease payments Net cash used by capital and related financing activities Cash Flows From Investing Activities Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents - January I Cash and Cash Equivalents - December 31 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense (Increase) decrease in: Accounts receivable Due from other funds Increase (decrease)in: Accounts, compensated absences and accrued intereset payable Net Cash Provided (Used) by Operating Activities Equipment Insurance Replacement Risk Employee Benefits Totals $ - $ 35,565 $ $ 35,565 322,760 43,734 366,494 (14,229) (25,648) (39,877) (10,202) (826) (11,028) 298,329 9,091 43,734 351,154 52,545 - 52,545 (185,467) (185,467) 10,258 10,258 (20,022) (20,022) (33,885) (33,885) (229,116) (229,116) 19,509 1,661 16,045 37,215 141,267 10,752 59,779 211,798 1,031,170 124,644 909,716 2,065,530 $ 1,172,437 $ 135,396 $ 969,495 $ 2,277,328 $ (217,772) $ 20,174 $ - $ (197,598) 479,987 479,987 12,154 (7,013) 5,141 23,143 23,143 817 (4,070) 43,734 40,481 $ 298,329 $ 9,091 $ 43,734 $ 351,154 112 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 SECTION III STATISTICAL SECTION 113 CITY OF HOPKINS, MINNESOTA STATISTICAL SECTION This part of the City of Hopkins' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and the required supplementary information says about the city's overall financial health. Contents Paqe Financial Trends 115 These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity 122 These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. Debt Capacity 126 These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. Demographic and Economic Information 131 These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments. Operating Information 133 These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 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O Ul 7 a) O d H H S D 0 7 H �' .N O (6 p y (6 al 0 m O C 0 (6 0 p m O (6 H p f0 > L 0 7 0 Z 0 H H U 0 E 117 Y O Z FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) 118 Fiscal Year 2000 2001 2002 2003 General Fund Reserved $ 652,560 $ 617,388 $ 580,462 $ 557,628 Unreserved 2,474,067 2,581,317 2,795,941 3,230,283 Total general fund $ 3,126,627 $ 3,198,705 $ 3,376,403 $ 3,787,911 All other Governmental Funds Reserved reported in: Special Revenue Funds $ 3,504,264 $ 4,816,824 $ 4,989,862 $ 5,813,114 Capital Projects Funds - - 10,107,076 6,500,016 Debt Service Funds 1,819,160 4,727,313 2,728,091 3,045,346 Unreserved reported in: Special Revenue Funds 4,946,910 2,585,542 3,096,445 1,705,798 Capital Projects Funds 3,922,727 3,484,848 4,106,501 3,993,924 Total all other governmental funds $ 14,193,061 $ 15,614,527 $ 25,027,975 $ 21,058,198 Total all funds $ 17,319,688 $ 18,813,232 $ 28,404,378 $ 24,846,109 118 Schedule 3 Fiscal Year 2004 2005 2006 2007 2008 2009 $ 97,740 $ 943,474 $ 974,517 $ 1,157,142 $ 111,806 $ 196,790 3,973,556 3,367,721 3,345,606 3,304,729 3,884,309 3,930,996 $ 4,071,296 $ 4,311,195 $ 4,320,123 $ 4,461,871 $ 3,996,115 $ 4,127,786 $ 4,326,291 $ 6,010,974 $ 5,625,355 $ 3,137,313 $ 3,189,829 $ 3,528,529 1,526,732 - - - - - 3,789,322 6,303,112 2,852,655 12,982,623 3,250,202 6,021,748 2,901,921 969,812 1,539,404 1,070,230 955,772 (24,957) 3,993,720 3,945,500 1,718,021 1,808,708 1,381,657 1,264,405 $ 16,537,986 $ 17,229,398 $ 11,735,435 $ 18,998,874 $ 8,777,460 $ 10,789,725 $ 20,609,282 $ 21,540,593 $ 16,055,558 $ 23,460,745 $ 12,773,575 $ 14,917,511 119 CITY OF HOPKINS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) 120 Fiscal Year 2000 2001 2002 2003 Revenues Property Taxes $ 4,655,968 $ 5,087,313 $ 6,215,194 $ 6,877,331 Tax Increments 2,232,616 2,730,232 2,003,743 2,214,835 Special Assessments 1,109,585 1,253,592 1,363,167 1,460,464 Intergovernmental 3,719,263 3,096,853 2,830,806 2,850,337 Licenses and Permits 428,435 377,048 468,312 777,997 Charges for Services 676,290 471,515 898,896 797,233 Fines and Forfeits 148,257 167,252 148,112 181,893 Investment Earnings 744,653 627,909 584,238 327,959 Miscellaneous 237,466 338,543 460,422 224,320 Total revenues 13,952,533 14,150,257 14,972,890 15,712,369 Expenditures Current: General Government 1,033,201 1,043,394 1,061,960 1,259,121 Public Safety 3,196,224 3,398,981 3,690,368 4,433,499 Health and Welfare - - - 185,893 Highways and Streets 1,591,676 1,693,361 1,652,143 1,674,836 Urban Redevelopment and Housing 1,079,606 1,141,409 1,157,960 1,595,927 Culture and Recreation 658,967 667,410 1,027,243 1,044,948 Other 1,318 34,290 93,508 - Capital outlay 2,664,797 4,667,505 4,480,058 9,030,629 Debt Service Principal 720,000 995,847 3,991,502 1,407,647 Interest and fiscal charges 995,622 1,116,134 1,345,811 1,688,138 Bond Issuance Costs - 25,156 - - Total expenditures 11,941,411 14,783,487 18,500,553 22,320,638 Excess (deficiency) of revenues over expenditures 2,011,122 (633,230) (3,527,663) (6,608,269) Other Financing Sources (Uses) Sale of Property - - - - Proceeds from Issuance of Debt - 2,125,000 14,170,000 3,050,000 Discount on Debt - - - - Premium on Debt - - - - Transfer In 936,942 2,092,153 2,355,193 2,042,771 Transfer Out (965,250) (2,090,379) (2,328,241) (2,602,175) Total other financing sources (uses) (28,308) 2,126,774 14,196,952 2,490,596 Net change in fund balances $ 1,982,814 $ 1,493,544 $ 10,669,289 $ (4,117,673) Debt service as a percentage of noncapital expenditures 18.5% 21.1% 38.1% 23.3% 120 Schedule 4 Fiscal Year 2004 2005 2006 2007 2008 2009 $ 7,283,712 $ 7,788,557 $ 8,134,915 $ 8,473,516 $ 8,844,113 $ 9,377,127 2,177,518 970,846 990,776 1,050,601 1,186,395 1,636,535 1,441,885 1,368,262 1,288,437 1,172,977 1,120,741 1,071,406 1,758,573 1,177,016 1,036,645 2,115,670 1,053,405 1,220,766 686,933 643,811 540,120 880,443 744,502 820,031 792,280 1,017,343 631,655 729,365 872,388 875,470 197,337 207,454 203,830 215,051 188,003 148,172 339,883 358,336 705,591 638,796 318,074 135,569 700,012 558,575 692,649 851,203 709,915 1,024,879 15,378,133 14,090,200 14,224,618 16,127,622 15,037,536 16,309,955 1,094,526 1,332,796 1,366,246 1,597,503 1,590,347 1,552,712 4,695,803 4,848,336 4,994,273 5,290,802 5,779,047 5,888,481 180,314 176,552 176,502 184,541 232,163 273,760 1,681,484 1,812,403 1,824,658 2,091,043 2,224,338 2,139,351 937,849 911,005 944,577 1,787,131 935,402 1,586,083 1,074,587 1,093,699 997,987 1,122,891 1,289,323 1,278,108 6,651,109 2,489,137 3,055,815 5,830,516 1,228,755 1,556,121 1,644,908 2,306,152 4,926,284 1,610,000 1,705,000 1,805,000 1,780,620 1,535,171 1,418,311 1,131,514 1,100,211 1,037,372 - 41,906 - 81,109 - 34,972 19,741,200 16,547,157 19,704,653 20,727,050 16,084,586 17,151,960 (4,363,067) (2,456,957) (5,480,035) (4,599,428) (1,047,050) (842,005) - - - - - 341 - 3,385,000 - 11,875,000 - 2,865,000 - (4,240) - (72,905) - (24,400) - - - 7,520 - - 2,594,787 1,625,994 5,273,592 14,940,055 1,043,155 1,088,875 (2,468,547) (1,618,486) (5,278,592) (14,745,055) (898,155) (943,875) 126,240 3,388,268 (5,000) 12,004,615 145,000 2,985,941 $ (4,236,827) $ 931,311 $ (5,485,035) $ 7,405,187 $ (902,050) $ 2,143,936 26.2% 27.6% 38.1% 18.9% 18.9% 18.4% 121 CITY OF HOPKINS ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS (in thousands of dollars) Schedule 5 Total Taxable Market Total Direct Value Tax Rate Less: Payable Residential Apartment Commercial Industrial Other Tax -Exempt Year Property Property Property Property Property Property 2000 $ 464,257 $ 153,201 $ 149,427 $ 114,138 133 $ 85,442 2001 515,292 174,592 158,422 136,803 147 85,442 2002 609,165 192,868 168,922 140,653 160 85,442 2003 690,469 234,684 178,305 148,739 215 85,442 2004 924,590 256,511 264,953 154,778 225 182,899 2005 1,000,569 256,942 277,231 163,616 243 182,899 2006 1,062,213 256,559 305,233 176,812 288 182,899 2007 1,080,591 257,658 329,601 188,941 306 182,899 2008 1,061,645 257,275 352,028 198,808 306 182,899 2009 1,017,790 266,458 395,842 192,138 1,815 182,899 Schedule 5 Total Taxable Market Total Direct Value Tax Rate $ 795,581 32.190 899,667 31.130 1,026,166 54.790 1,166,755 56.100 1,417,933 56.660 1,515,459 48.940 1,618,206 48.262 1,674,198 45.862 1,687,163 45.570 1,691,144 47.315 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. 122 Source: Hennepin County, Minnesota Taxpayer Services Department Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service are based on each year's requirements. 123 Schedule 6 CITY OF HOPKINS Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) City Direct Rate Overlapping Rates General Total Direct Obligation and Debt Total School Hennepin Metro Total Overlapping Basic Rate Service Direct District County Council Other Overlapping Tax Rate Fiscal Year 2000 29.920 2.270 32.190 56.560 39.660 6.040 3.040 105.300 137.490 2001 28.916 2.124 31.040 44.220 37.620 5.820 2.310 89.970 121.010 2002 51.950 2.840 54.790 15.030 50.490 3.530 5.160 74.210 129.000 2003 49.190 6.910 56.100 20.590 50.610 3.830 6.010 81.040 137.140 2004 49.028 7.636 56.664 22.200 47.320 3.500 5.260 78.280 134.944 2005 44.049 4.895 48.944 19.176 44.172 3.304 5.243 71.895 120.839 2006 41.300 6.962 48.262 21.565 41.016 2.924 5.180 70.685 118.947 2007 39.574 6.288 45.862 19.019 39.110 2.671 5.746 66.546 112.408 2008 39.237 6.333 45.570 19.218 38.571 2.562 5.984 66.335 111.905 2009 41.346 6.228 47.574 20.080 40.413 2.579 5.834 68.906 116.480 Source: Hennepin County, Minnesota Taxpayer Services Department Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service are based on each year's requirements. 123 Schedule 7 CITY OF HOPKINS PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND TEN YEARS AGO Source: Hennepin County, Minnesota Assessor's Office Notes: Tax capacity is a percentage of total market value. For taxes payable in 2008 these class rates are 1.25% for apartments and 1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties. 124 2009 2000 Percentage Percentage of Total of Total City City Tax Tax Tax Tax Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Super Valu $ 1,114,910 1 6.38 % $ 932,235 1 6.45 % Excelsior Crossings, LLC 439,250 2 2.51 - - - Greenfield Apartments, LLP 274,375 3 1.57 183,595 8 1.27 Duke Realty Ltd Partnership 249,250 4 1.43 440,964 2 3.05 Southwest Real Estate, Inc. 243,750 5 1.40 328,464 3 2.27 Hines Reit Mpls Ind LLC 229,250 6 1.31 - - - Hopkins Real Estate, LLC 229,250 7 1.31 - - - Ramsgate Apartments LLC 225,000 8 1.29 259,002 4 1.79 Oak Ridge Country Club 167,590 9 0.96 - - - Steel & Bakken Investments LLC 135,250 10 0.77 - - - Auburn Limited Partnership - - - 174,648 10 1.21 Alliant Tech - - - 203,537 6 1.41 Glaser Financial Group, Inc - - - 206,261 5 1.43 Ryan Hopkins, LLC - - - 185,816 7 1.29 Fleming Companies - - - 182,100 9 1.26 Total $ 3,307,875 18.94 % $ 3,096,622 21.44 % Total City 2009/2000 tax capacity $ 17,466,343 $ 14,442,812 Source: Hennepin County, Minnesota Assessor's Office Notes: Tax capacity is a percentage of total market value. For taxes payable in 2008 these class rates are 1.25% for apartments and 1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties. 124 00 () Z O H U W J (n J � OW Z J a� Lu M W LL W Z J W X ~ ~a } J W CL O w CL c� v a) 5 C a) 0 0 0 0 0 0 0 0 0 0 J L4 V O 00 N V co co 00 O) N Vw' O i N O O O co (O N O 7 a O _ co rn m c m co M Lo m co N N CO O (O V LO CO coNm co coN S N O O � � O) (O C7 O 00 C7 N X LO CO � N N LO CD O 7 H cc O 61� y O - 0 0 0 0 0 0 0 0 0 (O O N N (O � � N = CO 0) O 0) 0) 00 00 (c) c) Q a) O> 0 0 0 0 0 0 0 0 0 0 f+ L U) y J O a avi 00 C) Lc) I— Orn Cl) V � +� (oaomrnCOLnV LOC) O 1= O N V (O LO I— 1— 00 O 1— �-% 0 L6 C6 m L6 17 C7 V V (O O LO 0 O 00 I— O N V (0 LO cc E (OO V (oOco(Oco 0 a V L() (O 00 00 00 00 O) EA O N LC) == O LC) N O M 0 N m 00 N O O V 00 V V M O O O N V M CO V 00 V V V V V N N LO (A 0 0 0 0 0 0 0 0 0 0 I— V LO I— O— N O O N 00 O) (0 O) O) O) 00 1-- LO CO O) O) O) O O O 0) 0) 0) 0) 0 0 0 0 V I-- I-- O CO 0 0 0 00 N 00 O N O 0 M O= COM V N M OC7 V L(i O N O N 00 0 V N 0 00 N V O V V 0 I-- 1-- 00 00 00 00 O 0O N 0 CO CO CO O V LO (O V 0 M I-- 1--0 CO I� CO- �_ N O O I— CO- N N CO V O CO LO V CO I— � O O O N M O N 0 (0 O L(7 I-- = V CO N I— V LO 0 I-- 1-- 00 00 00 O O (A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O N N C7 00 N r- r- Nr- cococcoco 00IT 00C o ) N N N (A 0 O N 0 CO CO CO O V I-- c7 — N = 0 0 I— CO N O O) L(i (O 00 00 N (O V IZ- V 00 (o O N O) V O co (0 N N (0 co N LO O) LO V V 0 0 0 I-- ��� 00 (A ON m V LO 0 I-- 00 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N C: N 7 U U) m 125 U) a) x m M U) 7 U N m m m � m C O U) � O U) c -0 -0 Z) N U) m o c m N m 7 O U N m O U t N O -0 o U) O O N � E m rn � m p -o E m m O C � N N E m m E m c O O mU 7 N i m � N -0 T E O O O C -p U -O — LO (6 00 C) - C) O N U o -0 -0 m m U O 0 m � ON O >� Y X m � C') .� a) -0 -O C Z) m U 00 .E c7 O (C — co (6 Ln co Gq 0 O a) -0 U 0 m � N � Lo a) O - 00 C7 V p a) N Gq m � O O O O C -O C C 'O Z � � � N � O O O O 7 N -F O m � j co > m rn m o O N N N T � ami U � m � m O m L LL = + v U) Z Y a O m LL O H U R N N O O CO 00 LO L +-' N O N O N LO N V OA O 00 CA O N LC) � d CC N N U N R - 0 0 0 0 0 0 0 0 0 N 0 0 0 0 0 0 0 0 0 0 +, O(O N co 1— LOQ V co 00 00 r L O O N (b O O LO C) 0 y O V N N N N N N N L a c 4- 0 +r c) (o v (o (o v 0 0 0 0 V 0 0 0 m co O O O O 00C) O V N O O O O 3 E Ob N C7 N L L6L6L6v O (O O� LC) O O LC) O 0 O O m LC) m O (O V (O Lf) d> NL6 C6 L6 C6 C6 00 00 O O O N N Coco Coco NCO NCO W o � LU O a 0 0 0 0 0 0 0 0 0 0 a } >� N y 0 0 0 0 0 0 0 0 0 0 0000000000 H H .0 7 MLC) 0: 0 0 0 0 LC) O O } N +' C "a A V O 1— M CO O O m N> U C V 1— co 1— N co m O V N U) c V > mf) O V LLf) Lf) V V C7 C7 O m a N Q LJ LU 7 Q } m (A (7 J Z Q V 0 0 0 0 0 0 0 0 0 0 E c 0 0 0 0 0 0 0 0 0 0 z f/% N y 0000000000 a LL ' V E"O Lo Lo O Lo O Lo O O O O Z O U) C 1— V O 1— 00 1— 1—= O M cn aN O OLOOm O� V NOOm (n N m =NNN===C NN 0U) <U) O a+ m O V O V 0 0 0 0 0 M 00 V O M LC) O O O O O LC) O= O V N 0 0 0 0 P: N K E -0 co O C7 ' O O LC) LC) O a ++ f4 y C O V C7 O O N O C7 OA > L O O O O O CO CO V CO N V m co C C N C C6 Ob Ob O V C a - � N N 0 0 0 0 0 0 0 0 E N On O_ O_ O_ O_ O_ O_ O_ O_ L a) 'a O O O O O LC) LC) O > �0000N�NLr V p _ U) m O N N R N (A J 0 0 0 0 0 0 0 0 0 0 a 0 0 0 0 0 0 0 0 0 0 O O_ O_ O_ O_ O_ O_ O_ O_ O_ CD- to _ L LC) O LOQ LOQ LOQ C) LO O LLOQ LOQ a) to a c O O V 00 co [,-LOLO V 0')000 00N LM0 (0-11- CO V N m N O C6 C6- 0 EA L R V 0 0 0 0 0 0 0 0 0 0 M NNNNNNNNNN W o � Schedule 10 CITY OF HOPKINS RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS N otes : Details regarding the city's outstanding debt can be found in note 8 of the notes to the financial statements. See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data See the Demographic and Economic Statistics schedule 14 for population data 127 General Bonded Debt Outstanding Less: Amt Percentage of General Available in Total Actual Taxable Fiscal Obligation Debt Service Primary Value of Per Year Bonds Funds Government Property Capita 2000 $ 1,615,000 $ 184,143 $ 1,430,857 0.180% $ 83.46 2001 2,760,000 1,501,980 1,258,020 0.142% 73.38 2002 1,305,000 173,454 1,131,546 1.146% 65.60 2003 1,145,000 156,772 988,228 1.239% 56.28 2004 985,000 175,121 809,879 0.974% 45.90 2005 830,000 181,078 648,922 0.884% 36.71 2006 675,000 180,401 494,599 0.772% 28.65 2007 10,450,000 682,307 9,767,693 0.720% 562.43 2008 9,855,000 591,600 9,263,400 0.677% 528.55 2009 9,245,000 472,721 8,772,279 0.519% 501.82 N otes : Details regarding the city's outstanding debt can be found in note 8 of the notes to the financial statements. See the Assessed and Actual Value of Taxable Property schedule 5 for taxable market value of property data See the Demographic and Economic Statistics schedule 14 for population data 127 Schedule 11 CITY OF HOPKINS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2009 Source: Hennepin County, Minnesota Taxpayer Services Notes: (1) 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 t (2) Net Debt Outstanding excludes revenue and special assessment debt and takes into consideration any sinking funds obligated for the repayment of the bonds. 128 Estimated Estimated Share of Net Debt Percentage Overlapping Outstanding Applicable Debt Overlapping: Hennepin County $600,494,319 1.19% $ 7,145,882 Hopkins ISD 270 156,028,964 16.68% 26,025,631 St. Louis Park ISD 283 54,914,328 41.00% 22,514,874 Hennepin Suburban Park District 71,017,752 1.58% 1,122,080 Hennepin Regional RR Authority 42,430,624 1.19% 504,924 Metropolitan Council 131,613,280 0.54% 710,712 Total Overlapping 58,024,103 City of Hopkins Direct Debt $ 8,345,492 100% 8,345,492 Total Direct and Overlapping Debt: $66,369,595 Source: Hennepin County, Minnesota Taxpayer Services Notes: (1) 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 t (2) Net Debt Outstanding excludes revenue and special assessment debt and takes into consideration any sinking funds obligated for the repayment of the bonds. 128 0 V Cc7 V 1— 1- O N N V O R O O LO O 00 V — = O 0 U Cl) V ff) Ef> N O LL E C w E -O T C (6 R V � 0- _ o j � N o� U .. m m O C U_ c E E O m g Q O N (6 fl- C L4 �O N O (6 2) (6 'p) O N (6 - O 0 N Q E m Q N O O 0) O � d 0 N N Z O H aU) U) 0 LU Z_ LL >- Z Z J mo O z 0 o 2 U' U) w LL a LL O Z i }LU N ULU a J J a W J LL co 1- 1— 1— 0')- (D )O 00 LO V EA EA Ln CO O LN (O N co - 05, O) Ln v (A (A LO 'o 00 N � V coco co O N EA EA co (D O) O co (h H> H> co V 00 O_ (0 C7_ 0')00 N N EA EA O N N 00 C) m rn m o N N EA EA N (70') V = N O) 00 EA EA N LO V N = O 00 EA EA LO 1- �I OII (�> (c> 0 O co 00 0 co C? O N 0 V N N O c� (0 v 0 co ao L6 o co V O E O O .E N N � 129 0 0 U 0 — U — = O 0 E c N N N -O -O U O O O) O 129 Schedule 13 CITY OF HOPKINS PLEDGED -REVENUE COVERAGE LAST TEN FISCAL YEARS Water Revenue Bonds Storm Sewer Revenue Bonds Fiscal Debt Service Debt Service Year Revenue Principal Interest Coverage Revenue Principal Interest Coverage 2000 $ - $ - $ - - $ 701,757 $ 205,000 $162,992 1.91 2001 1,053,414 115,000 181,049 3.56 723,825 230,000 176,596 1.78 2002 894,543 100,000 96,668 4.55 708,852 1,840,000 141,379 0.36 2003 967,389 105,000 84,079 5.12 690,367 250,000 113,178 1.90 2004 844,017 110,000 42,912 5.52 741,831 330,000 141,647 1.57 2005 998,129 115,000 79,532 5.13 682,497 325,000 130,213 1.50 2006 1,083,675 120,000 75,733 5.54 775,261 330,000 119,445 1.72 2007 1,133,248 125,000 69,699 5.82 724,778 350,000 111,605 1.57 2008 1,188,610 130,000 69,699 5.95 725,029 365,000 98,846 1.56 2009 1,339,390 140,000 53,440 6.92 800,843 365,000 79,437 1.80 Notes: Details regarding the City's outstanding debt can be found in Note 8 of the notes to the financial statements. 130 Schedule 14 CITY OF HOPKINS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS 131 Personal Per Income (2) Capita Fiscal (thousands Personal School Unemployment Year Population (1) of dollars) Income (2) Enrollment (3) Rate (4) 2000 17,145 157,964 32,017 11,532 2.7 2001 17,145 162,578 32,631 10,903 3.5 2002 17,250 166,968 33,283 10,948 4.4 2003 17,559 173,498 34,378 11,447 4.6 2004 17,643 183,821 36,199 11,416 4.3 2005 17,675 190,286 37,275 10,896 3.7 2006 17,263 200,296 38,944 10,828 3.9 2007 17,367 213,022 41,105 10,770 4.5 2008 17,526 223,288 42,772 10,760 6.4 2009 17,481 218,823 41,552 10,785 6.7 Sources: (1) Metropolitan Council, except for 2000 which is per the U.S. Census. (2) U.S. Department of Commerce Bureau of Economic Analysis data for Minnesota (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 131 Schedule 15 CITY OF HOPKINS PRINCIPAL EMPLOYERS, CURRENT YEAR AND TEN YEARS AGO Source: Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State Business Directory Notes: DNA - Historical data not available (1) Includes employees working in school buildings located within the City. 132 2009 2000 Percentage Percentage of Total of Total Taxpayer Employees Rank Employment Employees Rank Employment SuperValu 1,350 1 11.648 % 1,540 1 12.856 % ISD 270 Hopkins (1) 1,222 2 10.544 1,430 6 11.938 Cargil 900 3 7.765 - - - Augustana Chapel View Care Center 219 4 1.890 - - - Oak Ridge Country Club 184 5 1.588 180 9 1.503 Rudy Luther's Hopkins Honda 157 6 1.355 - - - Thermotech 152 7 1.311 325 4 2.713 City of Hopkins 129 8 1.113 177 10 1.478 Hopkins Care Center 125 9 1.079 - - - SunGard Financial Systems 105 10 0.906 - - - Alliant Techsystems - - - 600 2 5.009 ADC Telecommunications - - - 400 3 3.339 PGI Fulfillment, Inc. - - - 301 5 2.513 Advance Circuits - - - 207 7 1.728 Quality Assured Label, Inc. - - - 185 8 1.544 Total $ 3,193 27.550 % $ 3,805 31.764 % Source: Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State Business Directory Notes: DNA - Historical data not available (1) Includes employees working in school buildings located within the City. 132 General Government Administrative Services Finance Municipal Building Community Services Public Safety Police Fire Public Works Recreation Activity Center Skate Park Planning & Zoning Total General Government Schedule 16 CITY OF HOPKINS FULL-TIME EQUIVALENT CITY EMPLOYEES BY TYPE, LAST TEN FISCAL YEARS Full -time -Equivalent Employees as of December 31, 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4.65 4.53 5.11 5.11 3.53 5.55 5.55 5.15 5.05 4.95 3.95 4.00 4.00 4.00 4.30 4.60 4.60 4.60 4.60 4.60 2.00 2.00 1.50 1.50 0.85 1.40 1.45 1.45 1.45 1.45 10.10 10.30 10.30 10.30 9.74 8.90 8.90 9.48 9.85 9.95 37.50 37.50 40.25 40.25 39.00 37.50 38.50 39.40 39.45 40.00 0.80 0.80 0.90 0.90 0.90 1.20 1.20 1.20 1.20 1.20 23.50 22.67 23.05 23.05 20.00 19.50 18.60 18.59 18.60 18.70 3.32 3.65 3.66 3.66 2.55 4.10 4.10 4.00 3.30 3.30 - - - - - - 0.05 0.05 0.05 0.05 1.85 1.85 1.28 1.28 1.20 1.20 1.20 1.20 1.15 1.15 87.67 87.30 90.05 90.05 82.07 83.95 84.15 85.12 84.70 85.35 Special Revenue Funds Economic Development 1.80 1.80 2.37 2.37 2.40 1.60 1.60 1.60 1.78 1.75 Paratransit 0.15 0.15 0.15 0.15 0.20 0.20 0.20 0.20 0.20 0.20 Housing Rehabilitation 1.05 1.05 1.05 1.05 0.65 0.70 0.70 0.70 0.85 0.85 Parking 1.30 1.80 1.80 1.80 1.20 2.00 2.00 1.00 1.00 1.00 Section 8 1.30 1.20 1.20 1.20 1.40 1.40 1.40 1.35 - - Communication 1.05 1.05 0.58 0.58 0.07 0.05 0.05 0.10 0.10 0.10 Depot Coffee House 1.50 0.67 0.73 0.73 1.08 1.93 - 0.05 1.00 1.00 Art Center - - 3.92 3.72 4.22 4.05 4.05 4.05 4.05 Total Special Revenue Funds 8.15 7.72 7.88 11.80 10.72 12.10 10.00 9.05 8.98 8.95 Enterprise Funds Water 3.82 3.82 4.18 4.18 3.56 3.24 3.25 3.25 3.76 3.67 Sanitary Sewer 3.81 3.71 3.35 3.35 3.23 3.55 3.56 3.56 4.07 4.08 Refuse 3.27 3.68 3.68 3.68 3.89 4.15 4.08 4.08 4.09 4.12 Storm Sewer 0.58 0.82 0.62 0.62 0.47 0.47 0.46 0.46 0.46 0.46 Pavilion/Ice Arena 2.82 2.82 2.37 2.37 2.44 2.44 2.90 2.72 3.80 3.80 Art Center 3.88 3.78 3.92 - - - - - - - Skate Park - 0.35 0.38 0.38 - - - - - - Housing and Redevelopment 1.90 1.90 1.90 1.90 1.90 1.90 2.40 2.45 2.05 2.05 Total General Government 20.08 20.88 20.40 16.48 15.49 15.75 16.65 16.52 18.23 18.18 Total 115.90 115.90 118.33 118.33 108.28 111.80 110.80 110.69 111.91 112.48 Source: City Finance Office 133 Source: Various City Departments Notes: (1) Information not available is labeled N/A.. (2) In 2009 the Sewer Department began checking manholes on a monthly basis. 134 CITY OF HOPKINS OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Years Fiscal Function/Program 2000 2001 2002 2003 2004 General Government Elections 2 1 2 1 2 Registered voters 8,812 9,101 9,138 8,830 11,518 Number of votes cast 8,023 2,390 6,629 909 8,880 Voter participation (registered) 91.1% 26.3% 72.5% 10.3% 77.1% Public Safety Police Total Calls for Service 11,699 12,518 15,161 17,114 19,648 Sworn Officers 22 24 24 24 25 Arrests 1,123 992 1,201 1,229 1,232 911 Calls for Service N/A N/A 6,207 7,192 5,513 Traffic Stops N/A 4,025 2,005 2,813 3,044 Parking Citations N/A 2,219 1,939 2,705 1,506 Fire Fires 48 51 43 52 48 False Alarm 117 117 132 113 103 Fire Runs 320 342 330 329 326 Medical Runs 189 216 213 148 113 Average Response Time (minutes) 5.2 5.0 5.1 5.1 5.3 Inspections Building Permits 443 498 487 498 542 Value of Building Permits $17,051,981 $17,070,262 $34,562,884 $40,363,863 $34,316,423 Public Works Miles of seal coating N/A N/A 4 4 4 Miles of crack sealing N/A N/A 3.25 3.25 3.25 Sidewalk repairs in square feet N/A N/A 2,875 2,875 2,875 Alley repairs in square yards N/A N/A 173 173 157 Culture and Recreation Art Center Bookings N/A N/A 2,928 3,551 5,598 Reserved Hours N/A N/A 15,369 22,335 36,950 Customer Visits for Events/Activities N/A N/A 156,400 174,100 182,800 Water Gallons of water pumped (in millions) 891.3 907.9 774.6 780.2 732.4 Number of well house inspections 2,488 2,488 2,488 2,488 2,488 Number of hydrants flushed 100+ 100+ 100+ 100+ 100+ Water Rate $ 1.20 $ 1.20 $ 1.20 $ 1.20 $ 1.40 Sanitary Sewer Sanitary sewage flow (in millions of gallons) 637.6 717.8 678.4 634.3 653.2 Miles of sewer lines jetted n/a n/a n/a n/a 14.7 Number of manholes checked/cleaned 262 292 222 262 292 Lift Station Maintenance checks 4,374 4,374 4,374 4,374 4,374 Sewer Rate $ 2.25 $ 2.25 $ 2.25 $ 2.25 $ 2.25 Refuse Number of refuse accounts 2,663 2,664 2,663 2,695 2,670 Tons of refuse collected 2,780 2,827 3,280 2,624 2,671 Tons of recycled material (residential) 1,219 1,289 1,082 1,305 1,248 Refuse rate $11.00-14.45 $11.00-14.45 $11.00-14.45 $11.00-14.45 $11.00-14.45 Recycling rate $ 2.25 $ 2.25 $ 2.75 $ 2.75 $ 2.75 Pavilion/Ice Arena Ice time rental hours 1,463 1,478 1,479 1,487 1,521 Turf use hours 485 405 403 450 464 Mezzanine rental use 0 0 0 0 162 Source: Various City Departments Notes: (1) Information not available is labeled N/A.. (2) In 2009 the Sewer Department began checking manholes on a monthly basis. 134 Schedule 17 Year 2005 2006 2007 2008 2009 1 2 1 2 1 9,708 10,621 8,330 11,233 9,548 2,601 6,279 1,146 8,835 861 26.8% 59.1% 13.8% 78.7% 9.0% 19,049 18,567 19,137 19,440 19,238 26 26 26 26 26 1,272 1,199 1,216 879 781 4,908 4,547 4,588 4,658 4,519 2,916 3,321 4,287 3,042 2,698 1,122 841 747 647 925 76 59 70 45 38 107 101 70 101 107 337 297 350 291 220 121 68 59 67 56 5.3 5.3 4.3 4.3 4.2 365 494 377 897 381 $32,333,498 $14,272,117 $50,544,210 $45,074,024 $54,688,290 4 4 3.2 2.6 0.55 3.25 3.25 2.88 4.97 3.71 2,875 2,875 4,279 4,930 6,228 143 130 253 238 142 5,598 5,570 6,054 5,593 5,392 36,950 35,710 39,060 34,760 33,780 182,800 202,000 203,000 212,000 203,100 743.6 785.5 794.7 774.0 813.0 2,488 2,488 2,488 2,488 2,484 100+ 100+ 100+ 100+ 130 $ 1.40 $ 1.40 $ 1.40 $ 1.65 $ 1.86 647.3 638.2 641.3 626.2 580.2 15.0 14.6 17.3 14.6 14.2 222 262 441 344 1,290 (2) 4,374 4,374 4,374 3,855 4,312 $ 2.25 $ 2.50 $ 2.50 $ 2.70 $ 3.10 2,673 2,766 2,670 2,678 2,689 2,643 2,549 2,448 2,393 2,335 1,185 1,118 1,138 1,080 1,194 $12.50-15.90 $12.50-15.90 $12.50-15.90 $13.20 - 17.25 $15.85 - 21.85 $ 2.75 $ 2.75 $ 2.75 $ 3.25 $ 3.50 1,433 1,443 1,458 1,460 1,456 362 407 442 479 624 351 339 345 400 495 135 Source: Various City Departments 136 Schedule 18 CITY OF HOPKINS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Years Fiscal Year Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 9 10 10 10 10 10 11 11 11 11 Fire Stations 1 1 1 1 1 1 1 1 1 1 Public Works Highways (miles) 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 County Highways 5.69 5.69 5.69 5.32 5.32 5.32 5.32 5.32 5.32 5.32 City Streets (miles) 47.13 47.13 47.13 47.50 47.50 47.50 47.50 47.50 47.50 47.50 Alleys (miles) 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 Streetlights 350 350 350 360 360 398 398 398 398 398 Traffic Signals 44 44 44 44 44 44 44 44 44 44 Refuse collection trucks 3 3 3 3 3 3 3 3 3 3 Culture & Recreation Parks Parks 16 16 16 16 16 16 16 16 16 16 Park Trails 3 3 3 3 4 4 4 4 4 4 Park Acres 99 99 102 102 104 104 104 104 104 104 Park Shelters 10 10 10 10 10 10 10 11 11 11 Playgrounds 11 11 11 11 11 11 11 11 11 11 Skateboard Park/Inline Skating 0 1 1 1 1 1 1 1 1 1 Skating Rinks 7 7 7 7 7 7 7 7 7 7 Hockey Rinks 6 6 6 6 6 6 5 5 5 5 Basketball Courts 6 6 6 6 6 6 6 6 6 6 Softball Fields 4 4 4 4 4 4 4 4 4 4 Swimming Beach 1 1 1 1 1 1 1 1 1 1 Tennis Courts 12 12 12 12 8 8 8 8 8 8 Volleyball Courts 2 2 2 2 2 2 2 2 2 2 Watermains Distribution System (miles) 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 52.60 Fire Hydrants 560 560 560 560 560 560 560 560 560 560 Storage Capacity (gallons in thous) 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 Water Connections 3,126 3,126 3,144 3,157 3,163 3,163 3,168 3,168 3,168 3,168 Sanitary Sewer Collection System (miles) 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 45.46 Sewer Connections 3,050 3,050 3,064 3,077 3,081 3,081 3,086 3,086 3,086 3,086 Storm Sewer Pipe (miles) 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 21.40 Parking Parking Lots 7 7 7 7 7 7 7 7 7 7 Parking Ramp 1 1 1 1 1 1 1 1 1 1 Source: Various City Departments 136