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2009 City of Hopkins, MN Annual ReportCOMPREHENSIVE 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 REPOR T YEAR ENDED DECEMBER 31, 200 9 TABLE OF CONTENTS IINTRODUCTORY SECTION Page Letter of Transmittal from the City Manager and Finance Directo3 r Certificate of Achievement for Excellence in Financial Reportin9 g Administrative Organization Char10 t City Officials11 IIFINANCIAL SECTION Independent Auditors' Repor13 t Management's Discussion and Analysis (Unaudited15 ) A.Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets28 Statement of Activities29 Fund Financial Statements: Balance Sheet - Governmental Fund30 s Reconciliation of the Balance Sheet of Governmental Fund s to the Statement of Net Assets31 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Fund32 s Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities33 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fun34 d Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Economic Developmen t Special Revenue Fun39 d Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Tax Increment 1.2 - Entertainment Center Special Revenue Fun40 d Statement of Net Assets - Proprietary Fund42 s Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Fund44 s Statement of Cash Flows - Proprietary Fund45 s Notes to Financial Statements48 B.Required Supplementary Informatio n Schedule of Funding Progress - Other Postemployment Benefit Pla71 n THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPOR T YEAR ENDED DECEMBER 31, 200 9 Page C.Combining and Individual Nonmajor Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Fund74 s Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Fund82 s Schedules of Revenues, Expenditures, and Changes in Fun d Balances - Budget and Actual: Special Revenue Funds: State Chemical Assessment 90 Real Estate Purchases and Sales91 Para-Transi92 t Housing Rehab93 Parking94 Communications95 Depot Coffee House96 Art Cente97 r Tax Increment 2.1 - R.L. Johnson Compan98 y Tax Increment 2.6 - Sonoma Projec99 t Tax Increment 2.9 - Oaks of Mainstree100 t Tax Increment 2.10 - Business Distric101 t Tax Increment 2.11 - Super Val102 u Tax Increment 1.3 - 5th Avenue Flat103 s Tax Increment 1.4 Marketplace & Mai104 n Combining Statement of Net Assets - Nonmajor Enterprise Funds106 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor Enterprise Funds107 Combining Statement of Cash Flows - Nonmajor Enterprise Funds108 Combining Statement of Net Assets - Internal Service Fund110 s Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Fund111 s Combining Statement of Cash Flows - Internal Service Fund112 s THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPOR T YEAR ENDED DECEMBER 31, 200 9 IIISTATISTICAL SECTION Page A.Financial Trends Net Assets by Componen115 t Changes in Net Assets116 Fund Balances, Governmental Fund118 s Changes in Fund Balances, Governmental Fund120 s B.Revenue Capacit y Assessed and Actual Value of Taxable Propert122 y Direct and Overlapping Property Tax Rate123 s Principal Property Taxpayer124 s Property Tax Levies and Collection125 s C. Debt Capacit y Ratios of Outstanding Debt by Typ126 e Ratios of Net General Bonded Debt Outstandin127 g Direct and Overlapping Governmental Activities Deb128 t Legal Debt Margin Informatio129 n Pledged-Revenue Coverag130 e D.Demographic and Economic Informatio n Demographic and Economic Statistics131 Principal Employers132 E.Operating Informatio n Full-time Equivalent Employees by Typ133 e Operating Indicators by Function/Progra134 m Capital Asset Statistics by Function/Progra136 m CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 SECTION I INTRODUCTORY SECTION 1 2 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. 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- 4 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 th 8 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 II 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 th Road and 9 Avenue South. The second phase occurred in 2002 – 2004 between Highway 169 and th Blake Road. The third phase occurred in 2007 on the segment between Highway 169 and 8 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. 6 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 Christine M. Harkess, CPA, CGFM City Manager Finance Director 8 9 ïð THE CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPOR T CITY OFFICIALS December 31, 2009 CITY COUNCIL Ter m Expires Eugene MaxwellMayo12-31-09 r Kristi HalversoCouncilmembe12-31-09 nr Rick BrauseCouncilmembe12-31-11 nr Bruce RowaCouncilmembe12-31-11 nr Cheryl YouakiCouncilmembe12-31-09 mr CITY MANAGE R Richard B. GetschoAppointe wd FINANCE DIRECTO R Christine M. HarkessAppointe d 11 CITY OF HOPKINS, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 SECTION II FINANCIAL SECTION 12 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 certainrequired 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 Governmental ActivitiesBusiness-Type ActivitiesTotal 200920082009200820092008 Assets Current and other $27,868,693$26,664,408$3,586,315$691,934$31,455,008$27,356,342 assets 46,014,532 46,206,295 19,747,908 19,508,822 65,762,440 65,715,117 pital assets Ca Total assets73,883,225 72,870,703 23,334,223 20,200,756 97,217,448 93,071,459 Liabilities Other liabilities8,975,396 6,358,922 2,373,766 895,484 11,349,1627,254,406 Long-term liabilities 20,185,544 22,003,413 4,310,219 2,943,849 24,495,763 24,947,262 outstanding 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 31,700,690 30,769,922 13,484,942 16,081,209 45,185,63246,851,131 debt Restricted11,952,783 10,074,674 - - 11,952,78310,074,674 Unrestricted1,068,812 3,663,772 3,165,296 280,214 4,234,1083,943,986 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: 18 City of Hopkins Changes in Net Assets For the Year Ended December 31 Governmental ActivitiesBusiness-Type ActivitiesTotal 200920082009200820092008 Revenues: Program revenues: Charges for services $ 875,470 $ 872,388 $ 5,208,666 $ 4,808,966 6,084,136$ $5,681,354 Operating grants and 2,441,622 1,949,375 150,814 251,885 contributions 2,592,4362,201,260 Capital grants and 745,505 170,393 142,691 394,913 contributions565,306 888,196 General revenues: 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 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 assets213,917(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 $ 44,722,285 $ 44,508,368 $ 16,650,238 $ 16,361,423 $ 61,372,523 $ 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 assets Grants and Investment earnings 0% contributions not 1% restricted 2% Charges for services 6% Tax increments Operating grants and 11% contributions 16% Capital grants and contributions 5% Property taxes 59% 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 GovernmentPublic SafetyHighways and StreetsUrban RedevelopmentCulture and recreationHealth and welfareInterest on long-term and Housingdebt 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 Investment 3% earnings 0% Operating grants and contributions 3% Charges for services 94% Expenses and Program Revenues - Business-type Activities $2,000,000 Program revenues Expenses $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 WaterSewerStorm SewerRefusePavilion/IceHousing ArenaAuthority 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 ActivitiesBusiness-Type ActivitiesTotal 200920082009200820092008 Land$5,805,711$5,805,711$167,789$167,789$5,973,500$5,973,500 Buildings15,999,07716,483,4053,362,2243,493,90819,361,30119,977,313 Infrastructure- - 8,718,7648,820,4188,718,7648,820,418 Improvements18,126,54715,609,6414,870,2504,412,80122,996,79720,022,442 Vehicles1,735,7392,076,306346,071395,7382,081,8102,472,044 Equipment1,588,6571,585,875209,463263,2741,798,1201,849,149 Construction in progress2,758,8014,645,3572,073,3471,954,8944,832,1486,600,251 $46,014,532$46,206,295$19,747,908$19,508,822$65,762,440$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 Governmental ActivitiesBusiness-Type ActivitiesTotal 200920082009200820092008 HRA lease revenue bonds$2,440,000 $2,565,000 $ $2,440,000- $2,565,000 - $ G.O. Tax increment bonds3,575,000 3,200,000-3,575,000 3 ,200,000 - G.O. Housing fee bonds7,090,0004,560,000 7,090,000-4,560,000 - G.O. Redevelopment bonds245,000385,000 245,000-385,000 - G.O. Capital improvement bonds9,000,0009,470,000 9,000,000-9,470,000 - 2,690,000 2,330,000-2,690,000 G.O. Special assessment bonds 2 ,330,000 - Revenue bonds- 6,200,000-3,410,000 3 ,410,000 6 ,200,000 $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 “A1” 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 $3,930,996 or 39% of general fund expenditures. The Office of the State Auditor recommends unreserved fund balances no less than five months of operating expenditures. The City is within that recommendation for the general fund. The unreserved fund balance is used to pay for the City’s general fund obligations until it receives its property tax levy revenues in June. Requests for Information This financial report is designed to provide a general overview of the City of Hopkins finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Hopkins, 1010 First Street South, Hopkins, MN 55343. 26 BASIC FINANCIAL STATEMENTS 27 City of Hopkins Statement of Net Assets December 31, 2009 Primary Government GovernmentalBusiness-type ActivitiesActivitiesTotal Assets Cash and investments$ 3,297,40215,060,054$ 18,357,456$ Taxes receivable376,717-376,717 Special assessments receivable6,704,543-6,704,543 Accounts receivable436,076363,085799,161 Intergovernmental receivable2,540,48234,3632,574,845 Interest receivable34,8327,04041,872 Internal balances330,187(330,187)- Inventories97,29129,690126,981 Prepaid items99,71917,244116,963 Deferred charges 356,57531,440388,015 Long-term receivables1,135,119136,2381,271,357 Property held for resale697,098-697,098 Capital assets, non depreciable8,564,5122,241,13610,805,648 Capital assets, net of accumulated depreciation37,450,02017,506,77254,956,792 Total assets73,883,22523,334,22397,217,448 Liabilities Accounts payable419,657178,690598,347 Salaries payable281,58127,291308,872 Due to other governments2,94424,60827,552 Accrued interest payable415,04054,649469,689 Unearned revenue2,504,7922,4332,507,225 Non current liabilities: Compensated absences due within one year650,82391,095741,918 Compensated absences due in more than one year195,66423,389219,053 Net OPEB liability112,98318,864131,847 Capital lease due within one year35,559-35,559 Capital lease due in more than one year355,556-355,556 Bonds due within one year4,665,0001,995,0006,660,000 Bonds due in more than one year19,521,3414,267,96623,789,307 Total liabilities29,160,9406,683,98535,844,925 Net Assets Invested in capital assets, net of related debt31,700,69013,484,94245,185,632 Restricted for: Economic development695,209-695,209 Debt service11,257,574-11,257,574 Unrestricted1,068,8123,165,2964,234,108 Total net assets$ 16,650,23844,722,285$ 61,372,523$ The notes to the financial statements are an integral part of this statement. 28 29 30 31 32 33 City of Hopkins 1 of 5 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 Budgetpositive OriginalFinalActual(negative) Revenues Taxes General property taxes$6,870,187$6,870,187$6,929,965$59,778 Fiscal disparities1,108,9271,108,9271,084,451(24,476) Total Taxes7,979,1147,979,1148,014,41635,302 Licenses and permits Business 145,300145,300125,660(19,640) Non-business 448,135448,135493,46345,328 Total Licenses and permits593,435593,435619,12325,688 Intergovernmental Market value aid credit250,000250,0002,696(247,304) State grants166,010166,010229,88463,874 Insurance premium - police170,000170,000217,68147,681 Insurance premium - fire107,000107,00074,989(32,011) Federal grants1,0001,000 -(1,000) Other grants4,0004,0001,000(3,000) Total Intergovernmental698,010698,010526,250(171,760) Fines and forfeitures Court fines167,600167,600129,240(38,360) Charges for services General government19,40019,40027,0977,697 Public safety149,950149,950284,160134,210 Public works1,2001,2002,7761,576 Recreation50,00050,00049,769(231) Total Charges for services220,550220,550363,802143,252 Other Investment earnings105,783105,78332,026(73,757) Franchise fees290,000290,000286,404(3,596) Miscellaneous21,00021,00028,6167,616 Total Other416,783416,783347,046(69,737) Total Revenues10,075,49210,075,4929,999,877(75,615) Expenditures General Government: Mayor and council Salaries and employee benefits26,49726,49726,722(225) Materials, supplies and services51,57551,57541,34910,226 Total78,07278,07268,07110,001 34 City of Hopkins 2 of 5 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 Budgetpositive OriginalFinalActual(negative) Expenditures, (continued) General Government, (continued): Administrative services Salaries and employee benefits$493,226$493,226$487,889$5,337 Materials, supplies and services58,84558,84543,11215,733 Total552,071552,071531,00121,070 Less expenditures charged to other activities(100,000)(100,000)(100,000) - Net452,071452,071431,00121,070 Finance Salaries and employee benefits332,771332,771337,149(4,378) Materials, supplies and services68,16168,16163,2964,865 Total400,932400,932400,445487 Less expenditures charged to other activities(211,055)(211,055)(211,055) - Net189,877189,877189,390487 Legal Services Materials, supplies and services130,625130,625137,221(6,596) Municipal Building Salaries and employee benefits124,065124,065117,8166,249 Materials, supplies and services224,744224,744178,99645,748 Total348,809348,809296,81251,997 Less expenditures charged to other activities(40,000)(40,000)(40,000) - Net308,809308,809256,81251,997 Elections Salaries and employee benefits27,79827,79826,2841,514 Materials, supplies and services15,40515,40511,4743,931 Total43,20343,20337,7585,445 City Clerk and Reception Salaries and employee benefits117,840117,840109,5838,257 Materials, supplies and services19,66919,66920,164(495) Total137,509137,509129,7477,762 Less expenditures charged to other activities(37,000)(37,000)(37,000) - Net100,509100,50992,7477,762 Assessing Salaries and employee benefits80,81080,81080,207603 Materials, supplies and services110,478110,478104,1386,340 Total191,288191,288184,3456,943 Less expenditures charged to other activities(24,000)(24,000)(24,000) - Net167,288167,288160,3456,943 35 City of Hopkins 3 of 5 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 Budgetpositive OriginalFinalActual(negative) Expenditures, (continued) General Government, (continued): Planning and economic development Salaries and employee benefits$103,771$103,771$103,900$(129) Materials, supplies and services18,13518,1358,3889,747 Total121,906121,906112,2889,618 Less expenditures charged to other activities(20,000)(20,000)(20,000) - Net101,906101,90692,2889,618 Total General Government 1,572,3601,572,3601,465,633106,727 Public Safety: Police Police Administration Salaries and employee benefits376,009376,009383,376(7,367) Materials, supplies and services102,156102,15678,98323,173 Net478,165478,165462,35915,806 Police Patrol and Investigation Salaries and employee benefits2,419,7832,419,7832,509,872(90,089) Materials, supplies and services351,794351,794393,295(41,501) Total2,771,5772,771,5772,903,167(131,590) Police Services Salaries and employee benefits887,658887,658891,514(3,856) Materials, supplies and services190,045190,045171,91218,133 Total1,077,7031,077,7031,063,42614,277 Total Police4,327,4454,327,4454,428,952(101,507) Fire Salaries and employee benefits521,279521,279516,4964,783 Materials, supplies and services289,642289,642296,713(7,071) Total810,921810,921813,209(2,288) Inspections Salaries and employee benefits373,826373,826372,1131,713 Materials, supplies and services76,02576,02561,91014,115 Total449,851449,851434,02315,828 Total Public safety 5,588,2175,588,2175,676,184(87,967) 36 City of Hopkins 4 of 5 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 Budgetpositive OriginalFinalActual(negative) Expenditures, (continued) Health and Welfare: Inspections Salaries and employee benefits$116,618$116,618$121,648$(5,030) Materials, supplies and services26,44826,44825,784664 Total143,066143,066147,432(4,366) Total Health and welfare 143,066143,066147,432(4,366) Highways and Streets: Public works buildings and equipment services Salaries and employee benefits223,167223,167219,0804,087 Materials, supplies and services98,22698,86172,61626,245 Capital outlay6,0005,365 -5,365 Total327,393327,393291,69635,697 Less expenditures charged to other activities(213,000)(213,000)(202,238)(10,762) Net114,393114,39389,45824,935 Public Works Administration and Engineering Salaries and employee benefits330,930330,930323,6347,296 Materials, supplies and services43,58543,58543,56916 Total374,515374,515367,2037,312 Less expenditures charged to other activities(213,000)(213,000)(174,273)(38,727) Net161,515161,515192,930(31,415) Streets and Alleys Salaries and employee benefits384,610384,610441,150(56,540) Materials, supplies and services616,509616,509572,09844,411 Capital outlay1,5001,500 -1,500 Total1,002,6191,002,6191,013,248(10,629) Less expenditures charged to other activities(110,000)(110,000)(110,000) - Net892,619892,619903,248(10,629) Snow and Ice Removal Salaries and employee benefits116,043116,043108,4677,576 Materials, supplies and services64,64564,64586,340(21,695) Capital outlay1,0001,000 -1,000 Total181,688181,688194,807(13,119) Municipal parks and tree service: Salaries and employee benefits499,814499,814499,871(57) Materials, supplies and services289,918289,918228,05461,864 Total789,732789,732727,92561,807 Total Highways and Streets 2,139,9472,139,9472,108,36831,579 37 City of Hopkins 5 of 5 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 Budgetpositive OriginalFinalActual(negative) Expenditures, (continued) Culture and Recreation: Activity center Salaries and employee benefits$223,079$223,079$218,607$4,472 Materials, supplies and services105,330105,33081,94923,381 Total328,409328,409300,55627,853 Park and Recreation Salaries and employee benefits52,70352,70340,83111,872 Materials, supplies and services162,270162,270161,277993 Total214,973214,973202,10812,865 Total Culture and Recreation 543,382543,382502,66440,718 Unallocated Materials, supplies and services73,52073,52012,08961,431 Total Expenditures 10,060,49210,060,4929,912,370148,122 Other Financing Sources (Uses): Transfers in: - -50,00050,000 Transfers out:(15,000)(15,000)(5,836)9,164 Total Other Financing Sources (Uses) (15,000)(15,000)44,16459,164 Net change in fund balance - -131,671131,671 Fund Balance - January 13,996,1153,996,1153,996,115 - Fund Balance - December 31$3,996,115$3,996,115$4,127,786$131,671 The notes to the financial statements are an integral part of this statement. 38 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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: General property taxes$50,000$48,254$(1,746) Intergovernmental revenue: County grant -5,0005,000 Investment earnings33,00014,121(18,879) Other -15,16015,160 Total Revenues83,00082,535(465) Expenditures: Salaries and employee benefits168,960166,3342,626 Materials, supplies and services84,60361,87822,725 Total253,563228,21225,351 Less expenditures charged to other activities(37,500)(37,500) - Net216,063190,71225,351 Other Financing Sources (Uses): Transfer to Art Center Fund(61,000)(61,000) - Net change in fund balance(194,063)(169,177)24,886 Fund Balance - January 12,909,9292,909,929 - Fund Balance - December 31$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 Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Taxes: Tax increment$50,000$52,174$2,174 Investment earnings1,0003,0592,059 Miscellaneous revenue -7474 Total Revenues51,00055,3074,307 Expenditures: Materials, supplies and services1,2751,588(313) Capital outlay: Public improvements75,00075,000 - Total Expenditures76,27576,588(313) Net change in fund balance(25,275)(21,281)3,994 Fund Balance - January 1(76,190)(96,190) - Fund Balance - December 31$(101,465)$(117,471)$(16,006) The notes to the financial statements are an integral part of this statement. 40 41 42 43 44 45 46 NOTES TO THE FINANCIAL STATEMENTS 47 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS December 31, 2009 1 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: Thegeneral 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. for development opportunities of the city. Sources of funds are Theeconomic development fund accounts derived from the administration of loans and an annual tax levy. Thetax increment district entertainment district fund accounts for the repayment of debt on the re- development district tax increment project. The1999A 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. The1999B 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. The2005B 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. Themunicipal 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: Thewater 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. Thesewer 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 Thestorm 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. ThePavilion/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 account for financial resources to be used for the acquisition or construction of major capital facilities and infrastructure, other than those financed by proprietary funds or special revenue funds. Proprietary Funds 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. INTERFUND 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 20 - 25 years Improvements 10 - 20 years Vehicles 3 - 30 years Equipment 3 - 20 years H. COMPENSATED ABSENCES 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. 3.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 th Tax Increment District 1.3 5 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 Type 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 $18,357,456 Interest rate risk – Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in interest rates. In accordance with its investment policy, the city manages its exposure to declines in fair values by holding long-term government investments to maturity and by investing in commercial paper with maturity dates of 270 days or less. At of December 31, 2009 the City had the following investment maturities: 56 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Investment maturities (in years) FairLessNo Valuethan one1-5maturity Investment Type: Muncipal obligations1,545,810$ -$ 1,545,810$ -$ Negotiable certificates of deposit3,871,7123,871,712- - Money market accounts12,567,426 12,567,426- - Demand deposits372,508 372,508- - $ 3,871,71218,357,456$ 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 FairFDIC ValueAAAAA2AA1A2InsuredUnrated Investment Type: Muncipal obligations1,545,810$ 401,664$100,063$-$- $ $ 2 34,812$ 8 09,271 Negotiable certificates of deposit 3,871,712 3,871,712-- - - - Money market accounts12,567,426 12,567,426- - - - - Demand deposits372,508 372,508- - - - - $18,357,456$100,063$3,871,712$12,939,934 $ 4 01,664$ 2 34,812$ 8 09,271 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 party. 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: Beginning Ending BalanceIncreasesDecreases Transfers Balance Governmental activities: Capital assets, not being depreciated $ 5,805,711 $ - $ - $ - $ 5,805,711 Land 4,645,357 1,246,709 - (3,133,265) 2,758,801 Construction in Progress 10,451,068 1,246,709 - (3,133,265) 8,564,512 Total not being depreciated Capital assets, being depreciated 19,759,799 - - - 19,759,799 Buildings 26,829,897 66,317 - 3,133,265 30,029,479 Other Improvements 3,983,645 31,419 (79,343) - 3,935,721 Vehicles 4,619,952 240,268 (29,115) - 4,831,105 Machinery & Equipment 55,193,293 338,004 (108,458) 3,133,265 58,556,104 Total being depreciated Less accumulated depreciation: (3,276,394) (484,328) - - (3,760,722) Buildings (11,220,256) (682,676) - - (11,902,932) Other Improvements (1,907,339) (371,986) 79,343 - (2,199,982) Vehicles (3,034,077) (236,581) 28,210 - (3,242,448) Machinery & Equipment (19,438,066) (1,775,571) 107,553 - (21,106,084) Total accumulated depreciation Total capital assets, being 35,755,227 (1,437,567) (905) 3,133,265 37,450,020 depreciated, net Governmental activities capital assets, net $ 46,206,295 $ (190,858)$ (905)$ - $ 46,014,532 58 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Beginning Ending Balance Increases Decreases Transfers Balance Business-type Activities: Capital assets, not being depreciated $ 167,789 $ - $ - $ - $ 167,789 Land 1,954,894 875,255 - (756,802) 2,073,347 Construction in Progress 2,122,683 875,255 - (756,802) 2,241,136 Total not being depreciated Capital assets, being depreciated 6,805,599 6,434 - 88,421 6,900,454 Buildings 18,302,938 167,637 - 127,472 18,598,047 Infrastructure 5,267,462 30,463 - 538,509 5,836,434 Other Improvements 729,552 - - - 729,552 Vehicles 817,081 2,939 (19,733) 2,400 802,687 Machinery & Equipment 31,922,632 207,473 (19,733) 756,802 32,867,174 Total being depreciated Less accumulated depreciation: (3,311,691) (226,539) - - (3,538,230) Buildings (9,482,520) (396,763) - - (9,879,283) Infrastructure (854,661) (111,524) - - (966,185) Other Improvements (333,816) (49,665) - - (383,481) Vehicles (553,805) (44,313) 4,895 - (593,223) Machinery & Equipment (14,536,493) (828,804) 4,895 - (15,360,402) Total accumulated depreciation 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 $1,775,571 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 GeneralTotal Due to other funds: Non-major governmental924,101$ 924,101$ Tax Increment District Entertainment District- - Pavilion218,490 218,490 Non-major proprietary20,448 20,448 Total due to other funds1,163,039$ 1,163,039$ Advances from other funds EconomicInternal DevelopmentServiceTotal Advanced to other funds: Non-major governmental616,839$ -$ 616,839$ Tax Increment District Entertainment District1,458,179 - 1,458,179 Non-major proprietary-91,249 9 1,249 Total advances to other funds2,075,018$ 2,166,26791,249$ 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 GeneralGovernmentalTotal Transfers out: General50,000$ 5,836$ 55,836$ Economic Development- 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 out50,000$ 1,038,875$ 1,088,875$ 60 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: Governmental Activities Year Ending December 31, 2010$ 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 payments391,115$ 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: PurposeInterestRates 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 EndingGovernmental Activities December 31PrincipalInterest 2010$ 4,165,000$727,818 2011 1,350,000610,457 2012 1,360,000560,737 2013 1,105,000514,437 2014 1,145,000472,655 2015-20195,985,000 1,628,287 2020-20244,425,000 381,178 4,895,569$ $19,535,000 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 EndingGovernmental Activities December 31PrincipalInterest 2010$ 375,000$89,315 2011 285,00075,751 2012 295,00064,080 2013 290,00052,124 2014 200,00041,863 2015-2018885,000 77,031 $ 400,1642,330,000$ 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. 62 City of Hopkins, Minnesota NOTES TO FINANCIAL STATEMENTS, (CONT.) December 31, 2009 Revenue bonds outstanding at year-end are as follows: PurposeInterestRates Original Amount Current Amount Storm sewer construction & replacement 2.0 – 5.0% $ 2,810,000 $ 1,680,000 Water tower painting, meter system replacement 4.5 – 5.5% 2,060,000 1,000,000 Storm sewer – refunding 2.0 – 4.0% 2,215,000 830,000 Water refunding 2.0 – 4.0% 850,000 850,000 Water construction & replacement 2.0 – 4.0% 820,000 820,000 Sanitary sewer construction & replacement 2.0 – 4.0% 1,020,000 1,020,000 Revenue bond debt service requirements to maturity are as follows: Year Ending December 31PrincipalInterest 2010$ 1,995,000$142,228 2011 420,000124,145 2012 445,000114,876 2013 460,000105,107 2014 470,00094,033 2015-20191,235,000 323,755 2020-20241,020,000 129,381 2025 155,000 3,100 $6,200,000$ 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: PurposeInterestRates Original Amount Current Amount Police Station improvements 2.0 – 4.35% $ 3,050,000 $ 2,440,000 Annual debt service requirements to maturity are as follows: Year Ending December 31PrincipalInterest 2010$ 125,000$90,091 2011 130,00086,391 2012 135,00082,281 2013 140,00077,811 2014 145,00073,054 2015-2019795,000 282,741 2020-2024970,000 106,705 $ 799,0742,440,000$ 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: Beginning EndingDue Within BalanceAdditionsDeductionsBalanceOne Year Governmental Activities: Bonds payable: G.O. tax increment bonds$8,135,000$710,000 $10,290,000$3,545,000 $ 2 ,865,000 General obligation bonds9,855,000 610,000-9,245,000620,000 Total general obligation bonds17,990,000 2,865,0001,320,00019,535,0004,165,000 Special assessment bonds2,690,000 360,000-2,330,000375,000 Public facility lease bonds2,565,000 125,000-2,440,000125,000 Less deferred amounts For issuance discounts(105,263)-7,110 (98,153)- For issuance premiums6,635-(664) 5,971- On refunding(2,596)(24,400) (26,477)- 519 Total bonds payable 2,840,60023,143,7761,811,96524,186,3414,665,000 Compensated absences802,753694,557650,823 846,487650,823 Net OPEB liability67,264201,849156,130 112,983- Capital lease payable425,000 33,885- 391,11535,559 Governmental activity long-term liabilities$24, $3,737,006438,793$2,652,803 $25,536,926$5,351,382 Business-type activities: Bonds payable: Revenue bonds$3,410,000$1,995,000 $ 3 ,295,000$ 505,000$6,200,000 Less deferred amounts For issuance premiums 63,317- 62,966- (351) Compensated absences86,949102,996 114,48491,095 130,531 Net OPEB liability15,52233,70830,366 18,864- Business-type activity long-term liabilities$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 July1, 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. Funding Policy 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: City $ 32,166 State $ 64,532 Actuarial valuation date: 12/31/08 Actuarial cost method: Entry age normal actuarial cost method Assumed rate of return: 5% Actuarial valuation period Open Amortization method Level dollar – open Amortization period Ten years Inflation rate None Projected salary increases Not applicable Post retirement benefit increases $0 per year of service 66 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 PensionNet Pension Obligation Year EndedCost(APC)Cost ContributedAt 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) ActuarialActuarial AccruedExcess Under () ActuarialValue ofLiability(AAL)Of AssetsFunded AeOver AALRatio ValuationAssetsEntryg Date(a)(b)(a-b)(a/b) 12/31/2008$1,982,694 $2,485,423 $502,72980% () 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. 11. 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 Obligation3,725 Adjustment to Annual Required Contribution(4,972) Annual OPEB Cost (Expense)235,557 Contributions Made(186,496) Increase in Net OPEB Obligation49,061 Net OPEB Obligation- Beginning of Year82,786 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: Percentage FiscalAnnualof AnnualNet YearOPEBOPEB CostOPEB EndedCostConstributedObligation 12/31/2008236,804$65.0%82,786$ 12/31/2009235,55779.2%131,847 4. Funded Status and Funding Progress 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. 69 REQUIRED SUPPLEMENTARY INFORMATION 70 City of Hopkins, Minnesota REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress December 31, 2009 OTHER POSTEMPLOYMENT BENEFITS PLAN ActuarialUAAL as a ActuarialAccrued Percentage ActuarialValue ofLiabilityUnfunded FundedCoveredof Covered ValuationAssets(AAL)AALRatioPayrollPayroll Date(a)(b)(b-a)(a/b)(c )((b-a)/c) 01/01/2007-$ 2,297,909$ 2,297,909$ - 5,621,587$ 40.88% 71 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 StateReal EstateHennepin ChemicalPurchasesCountyHousing Assessment& SalesCDBGPara-TransitRehab ASSETS Cash and investments$ -$102,293$ -$ -$682,972 Taxes receivable - - - - - Special assessments receivable - - - - - Accounts receivable - - - - Rehabilitation loans receivable - -50,385 - - Accrued interest receivable -225 - -1,505 Due from other governments11,043 - -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 payable1,722 - -5692,099 Accrued interest payable - -8 - - Due to other funds110,804 -3,42416,920 - Due to other governments - - - - - Deferred revenue - - - - - Advanced from other funds - - - - - Total Liabilities112,990 -3,43227,9202,766 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)102,51846,953(11,000)681,711 Total Liabilities and Fund Balance$11,043$102,518$50,385$16,920$684,477 74 City of Hopkins 2 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Special Revenue Funds Depot Section 8CoffeeArt ParkingHousingCommunicationsHouseCenter ASSETS Cash and investments$247,44691,327$356,896$40,032$100 Taxes receivable - - - - - Special assessments receivable - - - - - Accounts receivable - -49,28533620,277 Rehabilitation loans receivable - - - - - Accrued interest receivable54320178491 - Due from other governments1,605 - - - - Total Assets$249,59491,528$406,965$40,459$20,377 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable$369109$7,496$2,174$9,969 Salaries payable1,687 -3751,66410,977 Accrued interest payable - - - - - Due to other funds - - - -577,597 Due to other governments - - -3106 Deferred revenue31,294 - - -20,079 Advanced from other funds - - - -300,000 Total Liabilities33,3501097,8713,841918,728 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:216,24491,419399,09433,040(898,351) Total Fund Balances216,24491,419399,09436,618(898,351) Total Liabilities and Fund Balance$249,59491,528$406,965$40,459$20,377 75 City of Hopkins 3 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Special Revenue Funds Tax TaxTaxIncrementTaxTax IncrementIncrementDistrictIncrementIncrement DistrictDistrictOaks ofDistrictDistrict R.L. JohnsonSonomaMainstreetBusiness DistrictSuper 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 receivable10065757 -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 Liabilities18316,8561,558 -3,967 Fund balances: Reserved for: Rehab loans receivable - - - - - Tax increment districts45,641 -343,670 -316,497 Debt service - - - - - Unreserved designated for: Economic development - - - - - Construction projects - - - - - Sustainability project - - - - - Unreserved undesignated: -(306,961) - - - Total Fund Balances45,641(306,961)343,670 -316,497 Total Liabilities and Fund Balance$45,659$9,895$345,228$ -$320,464 76 City of Hopkins 4 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Special Revenue Funds Tax TaxIncrement IncrementDistrict DistrictMarketplace` 5th Ave Flats& MainTotal ASSETS Cash and investments$ -$ -$2,235,407 Taxes receivable - - - Special assessments receivable - - - Accounts receivable121,942 -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 payable40636450 Due to other funds184,58616,250909,581 Due to other governments - -109 Deferred revenue - -51,373 Advanced from other funds - -616,839 Total Liabilities185,89617,8611,637,163 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 City of Hopkins 5 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Debt Service Funds Park and Recreational Refunding D ImprovementImprovementTaxBonds of HousingRevolvingRevolvingIncrement1993, Refunding Bonds ofBonds ofBonds ofBonds ofBonds of 19951999200220022001 ASSETS Cash and investments$132,040$108,157$150,343$127,646$170,536 Taxes receivable -1,0956,2152,355 - Special assessments receivable201,311 - - - - Accounts receivable - - - - - Rehabilitation loans receivable - - - - - Accrued interest receivable290238331281375 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 revenue200,6767904,6941,665 - Advanced from other funds - - - - - Total Liabilities200,7678474,7871,73788 Fund balances: Reserved for: Rehab loans receivable - - - - - Tax increment districts - - - - - Debt service132,874108,643152,102128,545170,823 Unreserved designated for: Economic development - - - - - Construction projects - - - - - Sustainability project - - - - - Unreserved undesignated: - - - - - Total Fund Balances132,874108,643152,102128,545170,823 Total Liabilities and Fund Balance$333,641$109,490$156,889$130,282$170,911 78 City of Hopkins 6 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Debt Service Funds Tax TaxTaxable Tax IncrementIncrementIncrement HRA LeaseBonds of 1996CBonds of 1997Bonds of 1996D Capital RevemueRefundingRefunding Refunding Improvement Bonds ofBonds of Bonds of Bonds of Bonds of 20032005A2005A2005B2007A ASSETS Cash and investments$405,206$47,853$476,232$125,612$312,487 Taxes receivable7,953 - - -22,423 Special assessments receivable - - - - - Accounts receivable - - - - - Rehabilitation loans receivable - - - - - Accrued interest receivable3861051,047276688 Due from other governments - - - - - Total Assets$413,545$47,958$477,279$125,888$335,598 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable$79$41$414$73$67 Salaries payable - - - - - Accrued interest payable - - - - - Due to other funds - - - - - Due to other governments - - - - - Deferred revenue5,321 - - -14,912 Advanced from other funds - - - - - Total Liabilities5,400414147314,979 Fund balances: Reserved for: Rehab loans receivable - - - - - Tax increment districts - - - - - Debt service408,14547,917476,865125,815320,619 Unreserved designated for: Economic development - - - - - Construction projects - - - - - Sustainability project - - - - - Unreserved undesignated: - - - - - Total Fund Balances408,14547,917476,865125,815320,619 Total Liabilities and Fund Balance$413,545$47,958$477,279$125,888$335,598 79 City of Hopkins 7 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Debt Service Funds HousingHousing ImprovementImprovement Bonds ofBonds of Improvement1999A1999B RevolvingRefunding Refunding Bonds ofBonds ofBonds of 2007B2009B2009BTotal ASSETS Cash and investments$188,559$1,011,304$1,795,000$5,050,975 Taxes receivable5,629 - -45,670 Special assessments receivable - - -201,311 Accounts receivable - - - - Rehabilitation loans receivable - - - - Accrued interest receivable4152,2253,95210,609 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 revenue3,582 - -231,640 Advanced from other funds - - - - Total Liabilities3,65357101232,944 Fund balances: Reserved for: Rehab loans receivable - - - - Tax increment districts - - - - Debt service190,9501,013,4721,798,8515,075,621 Unreserved designated for: Economic development - - - - Construction projects - - - - Sustainability project - - - - Unreserved undesignated: - - - - Total Fund Balances190,9501,013,4721,798,8515,075,621 Total Liabilities and Fund Balance$194,603$1,013,529$1,798,952$5,308,565 80 City of Hopkins 8 of 8 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009 Capital Project Funds PermanentTotal CapitalImprovementNon-major ParkImprovementRevolvingGovernmental ImprovementsFundFundTotalFunds ASSETS Cash and investments$246,362$234,630$60,856$541,848$7,828,230 Taxes receivable -2,399 -2,39948,069 Special assessments receivable - -1,071,7041,071,7041,273,015 Accounts receivable - -4646197,178 Rehabilitation loans receivable - - - -50,385 Accrued interest receivable541645 -1,18616,757 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 - -1,0531,0531,503 Due to other funds - - - -909,581 Due to other governments - - - -109 Deferred revenue -1,7921,061,2521,063,0441,346,057 Advanced from other funds - - - -616,839 Total Liabilities3801,7921,164,4231,166,5953,036,702 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 -235,882235,882 Sustainability project - - - -3,578 Unreserved undesignated:246,523 -(31,817)214,706250,226 Total Fund Balances246,523235,882(31,817)450,5886,406,500 Total Liabilities and Fund Balance$246,903$237,674$1,132,606$1,617,183$9,443,202 81 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 StateReal EstateHennepin ChemicalPurchasesCountyHousing Assessment& SalesCDBGPara-TransitRehab Revenues Property tax$ -$ -$ -$ -$ - Tax increment - - - - - Special assessments - - - - - Intergovernmental revenue96,568 - -100,227 - Fees, licenses and permits - - - - - Charges for services -3,700 -9,265 - Fines - - - - - Investment earnings -1,665 - -11,518 Other4,203 - - -51 Total Revenues100,7715,365 -109,49211,569 Expenditures Current: General government - - - - - Public safety156,411 - - - - Health and welfare - - -126,328 - Highways and streets - - - - - Urban redevelopment and housing -1,3509,934 -95,586 Recreation - - - - - Capital outlay17,973 - - - - Debt Service: Principal retirement - - - - - Interest and fiscal fees - -78 - - Bond issuance costs - - - - - Total Expenditures174,3841,35010,012126,32895,586 Excess (deficiency) of revenues over expenditures(73,613)4,015(10,012)(16,836)(84,017) Other Financing Sources (Uses): Transfers in - - -5,836 - Transfers out - - - - - Sale of capital assets - - - - - Refunding bonds issued - - - - - Discount on refunding debt - - - - - Total Other Financing Sources (Uses) - - -5,836 - Net change in fund balances(73,613)4,015(10,012)(11,000)(84,017) Fund Balance (Deficit) - January 1(28,334)98,50356,965 -765,728 Fund Balance (Deficit) - December 31$(101,947)$102,518$46,953$(11,000)$681,711 82 City of Hopkins 2 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 Depot Section 8CoffeeArt ParkingHousingCommunicationsHouseCenter Revenues Property tax$ -$ -$ -$ -$ - Tax increment - - - - - Special assessments - - - - - Intergovernmental revenue - - - - - Fees, licenses and permits - -200,908 - - Charges for services39,374 - -60,191399,138 Fines18,932 - - - - Investment earnings4,1441,4736,167785 - Other - - -24,49728,294 Total Revenues62,4501,473207,07585,473427,432 Expenditures Current: General government - -70,510 - - Public safety55,886 - - - - Health and welfare - - - - Highways and streets28,771 - - - - Urban redevelopment and housing -109 - - - Recreation - - -114,470660,974 Capital outlay - -58,58715,466 - Debt Service: Principal retirement - - - - - Interest and fiscal fees - - - -147 Bond issuance costs - - - - - Total Expenditures84,657109129,097129,936661,121 Excess (deficiency) of revenues over expenditures(22,207)1,36477,978(44,463)(233,689) Other Financing Sources (Uses): Transfers in - - - -147,920 Transfers out - -(86,920) - - Sale of capital assets - - - -341 Refunding bonds issued - - - - - Discount on refunding debt - - - - - Total Other Financing Sources (Uses) - -(86,920) -148,261 Net change in fund balances(22,207)1,364(8,942)(44,463)(85,428) Fund Balance (Deficit) - January 1238,45190,055408,03681,081(812,923) Fund Balance (Deficit) - December 31$216,244$91,419$399,094$36,618$(898,351) 83 City of Hopkins 3 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 Tax TaxTaxIncrementTaxTax IncrementIncrementDistrictIncrementIncrement DistrictDistrictOaks ofDistrictDistrict R.L. JohnsonSonomaMainstreetBusiness DistrictSuper Valu Revenues Property tax$ -$ -$ -$ -$ - Tax increment601,6048,764149,99849,763772,288 Special assessments - - - - - Intergovernmental revenue - -9,614 - - Fees, licenses and permits - - - - - Charges for services - - - - - Fines - - - - - Investment earnings5222965,3273804,516 Other -10,292 - -8,298 Total Revenues602,12619,352164,93950,143785,102 Expenditures Current: General government - - - - - Public safety - - - - - Health and welfare - - - - - Highways and streets - - - - - Urban redevelopment and housing268,4141,2764,81281,335823,135 Recreation - - - - - Capital outlay - - - - - Debt Service: Principal retirement - - - - - Interest and fiscal fees - - - - - Bond issuance costs - - - - - Total Expenditures268,4141,2764,81281,335823,135 Excess (deficiency) of revenues over expenditures333,71218,076160,127(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 balances119,71218,07627,127(31,192)(226,033) Fund Balance (Deficit) - January 1(74,071)(325,037)316,54331,192542,530 Fund Balance (Deficit) - December 31$45,641$(306,961)$343,670$ -$316,497 84 City of Hopkins 4 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 TaxTax IncrementIncrement 5th AvenueMarketplace Flats& MainTotal Revenues Property tax$ -$ -$ - Tax increment1,944 -1,584,361 Special assessments - - - Intergovernmental revenue - -206,409 Fees, licenses and permits - -200,908 Charges for services - -511,668 Fines - -18,932 Investment earnings - -36,793 Other84,084 -159,719 Total Revenues86,028 -2,718,790 Expenditures Current: General government - -70,510 Public safety - -212,297 Health and welfare - -126,328 Highways and streets - -28,771 Urban redevelopment and housing86,64821,1841,393,783 Recreation - -775,444 Capital outlay - -92,026 Debt Service: - Principal retirement - - - Interest and fiscal fees2,9711833,379 Bond issuance costs - - - Total Expenditures89,61921,3672,702,538 Excess (deficiency) of revenues over expenditures(3,591)(21,367)16,252 Other Financing Sources (Uses): Transfers in - -153,756 Transfers out - -(621,920) Sale of capital assets - -341 Refunding bonds issued - - - Discount on refunding debt - - - Total Other Financing Sources (Uses) - -(467,823) Net change in fund balances(3,591)(21,367)(451,571) Fund Balance (Deficit) - January 1(60,363)3,5061,331,862 Fund Balance (Deficit) - December 31$(63,954)$(17,861)$880,291 85 City of Hopkins 5 of 8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Debt Service Funds Park and Recreational Refunding D ImprovementBonds ofImprovementTax HousingRevolving1993, RefundingRevolvingIncrement Bonds ofBonds ofBonds ofBonds ofBonds of 19951999200120022002 Revenues Property tax$ -$25,218$126,076$57,215$ - Tax increment - - - - - Special assessments98,612 - - - - Intergovernmental revenue - - - - - Fees, licenses and permits - - - - - Charges for services - - - - - Fines - - - - - Investment earnings956406744626783 Other - - - - - Total Revenues99,56825,624126,82057,841783 Expenditures Current: General government9157937288 Public safety - - - - - Health and welfare - - - - - Highways and streets - - - - - Urban redevelopment and housing - - - - - Recreation - - - - - Capital outlay - - - - - Debt Service: Principal retirement80,000100,000140,000100,000100,000 Interest and fiscal fees18,0357,84811,67617,88887,689 Bond issuance costs - - - - - Total Expenditures98,126107,905151,769117,960187,777 Excess (deficiency) of revenues over expenditures1,442(82,281)(24,949)(60,119)(186,994) Other Financing Sources (Uses): Transfers in -75,000 -58,219188,000 Transfers out - - - - - Sale of capital assets - - - - - Refunding bonds issued - - - - - Discount on refunding debt - - - - - Total Other Financing Sources (Uses) -75,000 -58,219188,000 Net change in fund balances1,442(7,281)(24,949)(1,900)1,006 Fund Balance (Deficit) - January 1131,432115,924177,051130,445169,817 Fund Balance (Deficit) - December 31$132,874$108,643$152,102$128,545$170,823 86 City of Hopkins 6 of 8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Debt Service Funds Tax TaxTaxable Tax IncrementIncrementIncrement HRA LeaseBonds of 1996CBonds of 1997Bonds of 1996D Capital RevenueRefundingRefunding Refunding Improvement Bonds ofBonds of Bonds of Bonds of Bonds of 20032005A2005A2005B2007A Revenues Property tax$218,216$ -$ -$ -$622,637 Tax increment - - - - - Special assessments - - - - - Intergovernmental revenue - - - - - Fees, licenses and permits - - - - - Charges for services - - - - - Fines - - - - - Investment earnings1,1205385,030737 - Other - - - - - Total Revenues219,3365385,030737622,637 Expenditures Current: General government79414147367 Public safety - - - - - Health and welfare - - - - - Highways and streets - - - - - Urban redevelopment and housing - - - - - Recreation - - - - - Capital outlay - - - - - Debt Service: Principal retirement125,0005,000185,00085,000470,000 Interest and fiscal fees95,03318,51523,63610,477391,500 Bond issuance costs - - - - - Total Expenditures220,11223,556209,05095,550861,567 Excess (deficiency) of revenues over expenditures(776)(23,018)(204,020)(94,813)(238,930) Other Financing Sources (Uses): Transfers in -28,000214,000105,000145,000 Transfers out - - - - - Sale of capital assets - - - - - Refunding bonds issued - - - - - Discount on refunding debt - - - - - Total Other Financing Sources (Uses) -28,000214,000105,000145,000 Net change in fund balances(776)4,9829,98010,187(93,930) Fund Balance (Deficit) - January 1408,92142,935466,885115,628414,549 Fund Balance (Deficit) - December 31$408,145$47,917$476,865$125,815$320,619 87 City of Hopkins 7 of 8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Debt Service Funds HousingHousing ImprovementImprovement Bonds ofBonds of Improvement1999A1999B RevolvingRefunding Refunding Bonds ofBonds ofBonds of 2007B2009B2009BTotal 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 earnings3662,9003,95218,158 Other - - - - Total Revenues170,0852,9003,9521,335,851 Expenditures Current: General government71571001,303 Public safety - - - - Health and welfare - - - - Highways and streets - - - - Urban redevelopment and housing - - - - Recreation - - - - Capital outlay - - - - Debt Service: Principal retirement160,000 - -1,550,000 Interest and fiscal fees80,167 - -762,464 Bond issuance costs -15,55619,41634,972 Total Expenditures240,23815,61319,5162,348,739 Excess (deficiency) of revenues over expenditures(70,153)(12,713)(15,564)(1,012,888) Other Financing Sources (Uses): Transfers in71,900 - -885,119 Transfers out - - - - Sale of capital assets - - - - Refunding bonds issued -1,035,0001,830,0002,865,000 Discount on refunding debt -(8,815)(15,585)(24,400) Total Other Financing Sources (Uses)71,9001,026,1851,814,4153,725,719 Net change in fund balances1,7471,013,4721,798,8512,712,831 Fund Balance (Deficit) - January 1189,203 - -2,362,790 Fund Balance (Deficit) - December 31$190,950$1,013,472$1,798,851$5,075,621 88 City of Hopkins 8 of 8 Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2009 Capital Project Funds PermanentTotal CapitalImprovementNon-major ParkImprovementRevolvingGovernmental ImprovementsFundFundTotalFunds Revenues Property tax$ -$95,376$ -$95,376$1,314,457 Tax increment - - - -1,584,361 Special assessments - -395,636395,636494,248 Intergovernmental revenue - - - -206,409 Fees, licenses and permits - - - -200,908 Charges for services - - - -511,668 Fines - - - -18,932 Investment earnings4,7404,345 -9,08564,036 Other3,226 -173,634176,860336,579 Total Revenues7,96699,721569,270676,9574,731,598 Expenditures Current: General government - - - -71,813 Public safety - - - -212,297 Health and welfare - - - -126,328 Highways and streets - -2,2122,21230,983 Urban redevelopment and housing - - - -1,393,783 Recreation - - - -775,444 Capital outlay119,37962,376932,0081,113,7631,205,789 Debt Service: Principal retirement - - - -1,550,000 Interest and fiscal fees - -1,6141,614767,457 Bond issuance costs - - - -34,972 Total Expenditures119,37962,376935,8341,117,5896,168,866 Excess (deficiency) of revenues over expenditures(111,413)37,345(366,564)(440,632)(1,437,268) Other Financing Sources (Uses): Transfers in - - - -1,038,875 Transfers out -(50,000)(205,119)(255,119)(877,039) Sale of capital assets - - - -341 Refunding bonds issued - - - -2,865,000 Discount on refunding debt - - - -(24,400) Total Other Financing Sources (Uses) -(50,000)(205,119)(255,119)3,002,777 Net change in fund balances(111,413)(12,655)(571,683)(695,751)1,565,509 Fund Balance (Deficit) - January 1357,936248,537539,8661,146,3394,840,991 Fund Balance (Deficit) - December 31$246,523$235,882$(31,817)$450,588$6,406,500 89 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 andfinal budget finalpositive budgetActual(negative) Revenues: Intergovernmental revenue: 45,00096,568 State grant$$$51,568 -4,203 Other4,203 45,000100,771 Total Revenues55,771 Expenditures: 24,33651,767 Salaries and employee benefits(27,431) 20,664104,644 Materials, supplies and services(83,980) -17,973 Capital outlay(17,973) 45,000174,384 Total Expenditures(129,384) -(73,613)(73,613) Net change in fund deficit (28,334)(28,334) Fund Deficit - January 1- 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 Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Charges for services$3,700$3,700$ - Investment earnings2,1001,665(435) Total Revenues5,8005,365(435) Expenditures: Materials, supplies and services -1,350(1,350) Net change in fund balance5,8004,015(1,785) Fund Balance - January 198,50398,503 - 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 Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Intergovernmental: State grant (Para-Transit)$101,522$100,227$(1,295) Charges for services16,0009,265(6,735) Total Revenues117,522109,492(8,030) Expenditures: Salaries and employee benefits19,19319,500(307) Materials, supplies and services107,756106,828928 Total Expenditures126,949126,328621 Other Financing Sources: Transfer from the General Fund9,4275,836(3,591) Net change in fund balance -(11,000)(11,000) Fund Balance - January 1 - - - Fund Balance - December 31$ -$(11,000)$(11,000) 92 City of Hopkins Housing Rehab Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Investment earnings$30,000$11,518$(18,482) Other -5151 Total Revenues30,00011,569(18,431) Expenditures: Salaries and employee benefits72,17076,828(4,658) Materials, supplies and services25,10318,7586,345 Total Expenditures97,27395,5861,687 Net change in fund balance(67,273)(84,017)(16,744) Fund Balance - January 1765,728765,728 - Fund Balance - December 31$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 Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Court fines$20,000$18,932$(1,068) Charges for services58,00039,374(18,626) Investment earnings7,5004,144(3,356) Total Revenues85,50062,450(23,050) Expenditures: Salaries and employee benefits45,52042,9312,589 Materials, supplies and services49,37841,7267,652 Capital outlay10,000 -10,000 Total Expenditures104,89884,65720,241 Net change in fund balance(19,398)(22,207)(2,809) Fund Balance - January 1238,451238,451 - Fund Balance - December 31$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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Franchise fees$170,000$200,908$30,908 Investment earnings12,8806,167(6,713) Total Revenues182,880207,07524,195 Expenditures: Salaries and employee benefits12,33413,423(1,089) Materials, supplies and services59,15257,0872,065 Capital outlay45,00058,587(13,587) Total Expenditures116,486129,097(12,611) Excess of revenues over expenditures66,39477,97811,584 Other Financing Uses: Transfer to Art Center Fund(86,920)(86,920) - Net change in fund balance(20,526)(8,942)11,584 Fund Balance - January 1408,036408,036 - Fund Balance - December 31$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 Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Charges for services$58,500$60,191$1,691 Investment earnings2,000785(1,215) Contributions45,00022,906(22,094) Other8001,591791 Total Revenues106,30085,473(20,827) Expenditures: Salaries and employee benefits85,14274,17910,963 Materials, supplies and services56,32240,29116,031 Capital outlay10,00015,466(5,466) Total Expenditures151,464129,93621,528 Net change in fund balance(45,164)(44,463)701 Fund Balance - January 181,08181,081 - Fund Balance - December 31$35,917$36,618$701 96 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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Intergovernmental: State grant $50,000$ -$(50,000) Charges for services435,522399,138(36,384) Other62,50028,294(34,206) Total Revenues548,022427,432(120,590) Expenditures: Salaries and employee benefits372,615368,6973,918 Materials, supplies and services287,742292,277(4,535) Debt service: Interest -147(147) Total Expenditures660,357661,121(764) Other Financing Sources Transfer from other funds147,920147,920 - Sale of capital assets -341(341) Total Other Financing Sources (Uses)147,920148,261(341) Net change in fund balance (deficit)35,585(85,428)(121,013) Fund Deficit - January 1(812,923)(812,923) - Fund Deficit - December 31$(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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Taxes: Tax increment$375,000$601,604$226,604 Investment earnings2,000522(1,478) Total Revenues377,000602,126225,126 Expenditures: Materials, supplies and services13,00113,552(551) Capital outlay: Site improvements - R.L. Johnson170,588254,862(84,274) Total Expenditures183,589268,414(84,825) Other Financing Uses Transfer to debt service, 1997 - HRA(213,000)(214,000)(1,000) Net change in fund balance(19,589)119,712139,301 Fund Balance - January 1(74,071)(74,071) - Fund Balance - December 31$(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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Taxes: Tax increment$10,000$8,764$(1,236) Investment earnings500296(204) Other9,02410,2921,268 Total Revenues19,52419,352(172) Expenditures: Materials, supplies and services1,4601,276184 Net change in fund balance18,06418,07612 Fund Balance (Deficit) - January 1(325,037)(325,037)- Fund Balance (Deficit) - December 31$(306,973)$(306,961)$12 99 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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Taxes Tax increment$155,000$149,998$(5,002) Intergovernmenal Market value aid credit10,5009,614(886) Investment earnings4,0005,3271,327 Total Revenues169,500164,939(4,561) Expenditures Materials, supplies and services5,0274,812215 Other Financing Uses: Transfer out for debt service(133,000)(133,000) - Net change in fund balance31,47327,127(4,346) Fund Balance - January 1316,543316,543 - Fund Balance - December 31$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 Year Ended December 31, 2009 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Taxes: Tax increment$90,000$49,763$(40,237) Investment earnings1,000380(620) Total Revenues91,00050,143(40,857) Expenditures: Materials, supplies and services90,67581,3359,340 Net change in fund balance325(31,192)(31,517) Fund Balance - January 131,19231,192 - 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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Taxes: Tax Increments$550,000$772,288$222,288 Investment earnings40,0004,516(35,484) Other -8,2988,298 Total Revenues590,000785,102195,102 Expenditures: Materials, supplies and services32,92842,774(9,846) Capital outlay: Site Improvements2,000,000780,3611,219,639 Total Expenditures2,032,928823,1351,209,793 Other Financing Sources (Uses): Transfer out for debt service(188,000)(188,000) - Net change in fund balance (deficit)(1,630,928)(226,033)1,404,895 Fund Balance (Deficit) - January 1542,530542,530 - Fund Balance (Deficit) - December 31$(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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Tax increment$2,000$1,944$(56) Other5,00084,08479,084 Total Revenues7,00086,02879,028 Expenditures: Materials, supplies and services11,90086,648(74,748) Capital outlay: Land2,000,000 -2,000,000 Debt service: Interest -2,971(2,971) Total Expenditures2,011,90089,6191,922,281 Other Financing Sources (Uses): Transfer in from tax increment2,000,000 -(2,000,000) Net change in fund deficit(4,900)(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 Variance with Original andfinal budget finalpositive budgetActual(negative) Revenues: Tax increment$2,000$ -$(2,000) Expenditures: Materials, supplies and services1,97521,184(19,209) Debt service: Interest -183(183) Total Expenditures1,97521,367(19,392) Net change in fund balance (deficit)25(21,367)(21,392) Fund Balance (Deficit) - January 13,5063,506 - Fund Balance (Deficit) - December 31$3,531$(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 Nonmajor Business-type Activities-Enterprise Funds Nonmajor RefuseHousing Proprietary Funds UtilityAuthority Total ASSETS Current assets $323,173$607,187$930,360 Cash and investments 41,38972542,114 Accounts receivable 710 -710 Accrued interest receivable -34,36334,363 Due from other governments 2,031 -2,031 Inventory -17,10417,104 Prepaid expenses 367,303659,3791,026,682 Total current assets Noncurrent assets Capital Assets: -119,392119,392 Land -277,446277,446 Construction in progress 302,7273,269,6613,572,388 Buildings and structures 2,584 -2,584 Distribution system 622,17838,172660,350 Machinery and equipment (472,385)(2,489,149)(2,961,534) Less accumulated depreciation 455,1041,215,5221,670,626 Total noncurrent assets 822,4071,874,9012,697,308 Total Assets LIABILITIES Current Liabilities: 30,75420,41651,170 Accounts payable 5,393 -5,393 Salaries payable -20,44820,448 Due to other funds 5,442 -5,442 Due to other governments 11,91312,75024,663 Compensated absences 53,50253,614107,116 Total Current Liabilities Noncurrent Liabilities: 1,324 -1,324 Compensated absences 3,9394,9758,914 Net OPEB liability 5,2634,97510,238 58,76558,589117,354 Total Liabilities NET ASSETS 455,1041,215,5221,670,626 Invested in capital assets 308,538600,790909,328 Unrestricted $763,642$1,816,312$2,579,954 Total net assets 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 Nonmajor Business-type Activities-Enterprise Funds Nonmajor RefuseHousingProprietary Funds UtilityAuthorityTotal Operating revenues: Charges for services$809,755$228,915$1,038,670 Other11,87350,94562,818 Total Operating Revenues821,628279,8601,101,488 Operating expenses: Cost of sales and service597,076275,790872,866 Administration141,95687,257229,213 Depreciation47,490165,495212,985 Total Operating Expenses786,522528,5421,315,064 Operating loss35,106(248,682)(213,576) Nonoperating revenues (expenses): Investment earnings5,010 -5,010 Intergovernmental grants24,581238,461263,042 Gain on sale of assets605 -605 Total nonoperating revenues (expenses)30,196238,461268,657 Income (loss) before contributions and transfers 65,302(10,221)55,081 Transfers out(25,000) -(25,000) Change in net assets40,302(10,221)30,081 Total net assets - beginning723,3401,826,5332,549,873 Total net assets - ending$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 Nonmajor Business-type Activities-Enterprise Funds Nonmajor RefuseHousingProprietary Funds UtilityAuthorityTotal Cash Flows from Operating Activities Receipts from customers and users$819,134$324,408$1,143,542 Internal activity-payments from other funds -1,8951,895 Payments to suppliers(354,171)(318,043)(672,214) Payments to employees(244,949)(83,889)(328,838) Payments for interfund services used(141,956) -(141,956) Net cash provided (used) by operating activities78,058(75,629)2,429 Cash Flows from Noncapital Financing Activities Intergovernmental grants24,581238,461263,042 Transfers (to) from other funds(25,000) -(25,000) Net cash provided (used) by noncapital and related financing activities(419)238,461238,042 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets(126,917)(126,917) Proceeds from sales of capital assets605 -605 Net cash provided (used) by capital and related financing activities605(126,917)(126,312) Cash Flows From Investing Activities Interest received5,131 -5,131 Net increase (decrease) in cash and investments83,37535,915119,290 Cash and Investments - January 1239,798571,272811,070 Cash and Investments - December 31$323,173$607,187$930,360 Reconciliation of operating loss to net cash used by operating activities: Operating income (loss)$35,106 $(248,682) $(213,576) Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation expense47,490 165,495 212,985 (Increase) decrease in: Accounts receivable(2,494) (334) (2,828) Due from other governments- 44,882 44,882 Inventory96 - 96 258 Prepaid expense- 258 Increase (decrease) in: (39,143) Accounts, compensated absences and accrued interest payable(2,140) (41,283) Due to other funds- 1,895 1,895 Net Cash Used by Operating Activities$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 Internal EquipmentInsuranceEmployeeService ReplacementRiskBenefitsFund 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 funds91,249 - -91,249 Accrued interest receivable2,5722982,0344,904 Total current assets1,266,258142,707971,5292,380,494 Property and equipment Machinery and equipment6,656,718 - -6,656,718 Less accumulated depreciation(3,794,751) - -(3,794,751) Net property and equipment2,861,967 - -2,861,967 Total Assets4,128,225142,707971,5295,242,461 LIABILITIES Current Liabilities: Accounts payable10,4192,788 -13,207 Accrued interest payable3,579 - -3,579 Compensated absences payable - -650,823650,823 Capital lease - current35,559 - -35,559 Total Current Liabilities49,5572,788650,823703,168 Noncurrent Liabilities Compensated absences payable - -195,664195,664 Capital lease payable355,556 - -355,556 Total Noncurrent Liabilities355,556 -195,664551,220 Total Liabilities405,1132,788846,4871,254,388 NET ASSETS Invested in capital assets, net of related debt2,470,852 - -2,470,852 Unrestricted1,252,260139,919125,0421,517,221 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 EquipmentInsuranceEmployee ReplacementRiskBenefitsTotal Operating revenues: Charges for services$287,463$42,578$ -$330,041 Operating expenses (excluding depreciation): Materials, supplies and services25,24822,404 -47,652 Operating income before depreciation262,21520,174 -282,389 Depreciation expense479,987 - -479,987 Operating loss(217,772)20,174 -(197,598) Nonoperating revenues (expenses): Miscellaneous revenue52,545 - -52,545 Investment earnings18,5191,52715,34535,391 Gain on sale of property and equipment10,258 - -10,258 Interest expense(20,022) - -(20,022) Total nonoperating revenues61,3001,52715,34578,172 Change in net assets(156,472)21,70115,345(119,426) Fund Equity: Net assets - January 13,879,584118,218109,6974,107,499 Net assets - December 31$3,723,112$139,919$125,042$3,988,073 111 City of Hopkins Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2009 EquipmenInsuranceEmployee t ReplacementRiskBenefits Totals Cash Flows from Operating Activities Receipts from customers and users$ -$35,565$ -$35,565 Receipts from interfund services provided322,760 -43,734366,494 Payments to suppliers(14,229)(25,648) -(39,877) Payments for interfund services used(10,202)(826) -(11,028) Net cash provided (used) by operating activities298,3299,09143,734351,154 Cash Flows from Noncapital Financing Activities Miscellaneous revenue52,545 - -52,545 Cash Flows from Capital and Related Financing Activities: Purchases of capital assets(185,467) - -(185,467) Proceeds from sales of capital assets10,258 - -10,258 Interest and other payments(20,022) - -(20,022) Capital lease payments(33,885) - -(33,885) Net cash used by capital and related financing activities(229,116) - -(229,116) Cash Flows From Investing Activities 19,5091,66116,04537,215 Net increase (decrease) in cash and cash equivalents141,26710,75259,779211,798 Cash and Cash Equivalents - January 11,031,170124,644909,7162,065,530 Cash and Cash Equivalents - December 31$1,172,437$135,396$969,495$2,277,328 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)$(217,772)$20,174$ -$(197,598) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense479,987 - -479,987 (Increase) decrease in: Accounts receivable12,154(7,013) -5,141 Due from other funds23,143 - -23,143 Increase (decrease) in: Accounts, compensated absences and accrued intereset payable817(4,070)43,73440,481 Net Cash Provided (Used) by Operating Activities$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 . ContentsPage 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. The city implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. 114 115 116 117 CITY OF HOPKINS FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 2000200120022003 General Fund Reserved652,560$ 617,388$ 580,462$ 557,628$ Unreserved2,474,067 2,581,317 2,795,941 3,230,283 Total general fund3,126,627$ 3,198,705$ 3,376,403$ 3,787,911$ All other Governmental Funds Reserved reported in: Special Revenue Funds3,504,264$ 4,816,824$ 4,989,862$ 5,813,114$ Capital Projects Funds- - 10,107,076 6,500,016 Debt Service Funds1,819,160 4,727,313 2,728,091 3,045,346 Unreserved reported in: Special Revenue Funds4,946,910 2,585,542 3,096,445 1,705,798 Capital Projects Funds3,922,727 3,484,848 4,106,501 3,993,924 Total all other governmental funds14,193,061$ 15,614,527$ 25,027,975$ 21,058,198$ Total all funds17,319,688$ 18,813,232$ 28,404,378$ 24,846,109$ 118 Schedule 3 Fiscal Year 200420052006200720082009 $ 943,47497,740$ 974,517$ 1,157,142$ 111,806$ 196,790$ 3,367,7213,973,556 3,345,606 3,304,729 3,884,309 3,930,996 $ 4,311,1954,071,296$ 4,320,123$ 4,461,871$ 3,996,115$ 4,127,786$ $ 6,010,9744,326,291$ 5,625,355$ 3,137,313$ 3,189,829$ 3,528,529$ -1,526,732 - - - - 6,303,1123,789,322 2,852,655 12,982,623 3,250,202 6,021,748 969,8122,901,921 1,539,404 1,070,230 955,772 (24,957) 3,945,5003,993,720 1,718,021 1,808,708 1,381,657 1,264,405 $ 17,229,39816,537,986$ 11,735,435$ 18,998,874$ 8,777,460$ 10,789,725$ $ 21,540,59320,609,282$ 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 YEAR S (modified accrual basis of accounting) Fiscal Year 2000200120022003 Revenues Property Taxes$4,655,968$5,087,313$6,215,194$6,877,331 Tax Increments2,232,6162,730,2322,003,7432,214,835 Special Assessments1,109,5851,253,5921,363,1671,460,464 Intergovernmental3,719,2633,096,8532,830,8062,850,337 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 revenues13,952,53314,150,25714,972,89015,712,369 Expenditures Current: General Government1,033,2011,043,3941,061,9601,259,121 Public Safety3,196,2243,398,9813,690,3684,433,499 Health and Welfare - - 185,893- Highways and Streets1,591,6761,693,3611,652,1431,674,836 Urban Redevelopment and Housing1,079,6061,141,4091,157,9601,595,927 Culture and Recreation 658,967 667,4101,027,2431,044,948 Other 1,318 34,290 93,508 - Capital outlay2,664,7974,667,5054,480,0589,030,629 Debt Service Principal 720,000 995,8473,991,5021,407,647 Interest and fiscal charges 995,6221,116,1341,345,8111,688,138 Bond Issuance Costs 25,156- - - Total expenditures11,941,41114,783,48718,500,55322,320,638 Excess (deficiency) of revenues over expenditures2,011,122(633,230)(3,527,663)(6,608,269) Other Financing Sources (Uses) Sale of Property - - - - Proceeds from Issuance of Debt 2,125,000-14,170,0003,050,000 Discount on Debt - - - - Premium on Debt - - - - Transfer In 936,9422,092,1532,355,1932,042,771 Transfer Out(965,250)(2,090,379)(2,328,241)(2,602,175) Total other financing sources (uses) (28,308)2,126,77414,196,9522,490,596 Net change in fund balances$1,982,814$1,493,544$10,669,289$(4,117,673) Debt service as a percentage of noncapital expenditures18.5%21.1%38.1%23.3% 120 Schedule 4 Fiscal Year 200420052006200720082009 $7,283,712$7,788,557$8,134,915$8,473,516$8,844,113$9,377,127 2,177,518 970,846 990,7761,050,6011,186,3951,636,535 1,441,8851,368,2621,288,4371,172,9771,120,7411,071,406 1,758,5731,177,0161,036,6452,115,6701,053,4051,220,766 686,933 643,811 540,120 880,443 744,502 820,031 792,2801,017,343 631,655 729,365 872,388 875,470 197,337 207,454 203,830 215,051 188,003 148,172 339,883 358,336 705,591 638,796 318,074 135,569 700,012 558,575 692,649 851,203 709,9151,024,879 15,378,13314,090,20014,224,61816,127,62215,037,53616,309,955 1,094,5261,332,7961,366,2461,597,5031,590,3471,552,712 4,695,8034,848,3364,994,2735,290,8025,779,0475,888,481 180,314 176,552 176,502 184,541 232,163 273,760 1,681,4841,812,4031,824,6582,091,0432,224,3382,139,351 937,849 911,005944,5771,787,131 935,4021,586,083 1,074,5871,093,699 997,9871,122,8911,289,3231,278,108 - - - - - - 6,651,1092,489,1373,055,8155,830,5161,228,7551,556,121 1,644,9082,306,1524,926,2841,610,0001,705,0001,805,000 1,780,6201,535,1711,418,3111,131,5141,100,2111,037,372 41,906- 81,109- 34,972- 19,741,20016,547,15719,704,65320,727,05016,084,58617,151,960 (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 - - 2,594,7871,625,9945,273,59214,940,0551,043,1551,088,875 (2,468,547)(1,618,486)(5,278,592)(14,745,055) (898,155)(943,875) 126,2403,388,268 (5,000)12,004,615 145,0002,985,941 $(4,236,827)$ 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 Schedule 5 CITY OF HOPKINS ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS (in thousands of dollars) Less:Total Taxable tCommercialIndustrialOtherTax-ExemptMarketTotal Direct PayableResidentialApartmen rPropertyPropertyPropertyPropertyPropertyPropertyValueTax Rate Yea $153,201$ 149,427$114,138 133$ 85,442$ 795,581 2000$ 4 64,257 32.190 158,422 85,442 899,667 2001 5 15,292 174,592 136,803 147 31.130 168,922 85,442 1,026,166 2002 6 09,165 192,868 140,653 160 54.790 178,305 85,442 1,166,755 2003 6 90,469 234,684 148,739 215 56.100 264,953 182,899 1,417,933 2004 9 24,590 256,511 154,778 225 56.660 277,231 182,899 1,515,459 2005 1 ,000,569 256,942 163,616 243 48.940 305,233 182,899 1,618,206 2006 1 ,062,213 256,559 176,812 288 48.262 329,601 182,899 1,674,198 2007 1 ,080,591 257,658 188,941 306 45.862 352,028 182,899 1,687,163 2008 1 ,061,645 257,275 198,808 306 45.570 395,842 182,899 1,691,144 2009 1 ,017,790 266,458 192,138 1,815 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 Schedule 6 CITY OF HOPKINS Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) City Direct RateOverlapping Rates General Total Direct Obligationand DebtTotalSchoolHennepinMetroTotalOverlapping ServiceDirectDistrictCountyCouncilOtherOverlappingTax Rate Basic Rate Fiscal Year 39.660 105.300 137.490 2000 2 9.920 2 .27032.190 56.560 6.0403.040 37.620 89.970 121.010 2001 2 8.916 2 .12431.040 44.220 5.8202.310 50.490 74.210 129.000 2002 5 1.950 2 .84054.790 15.030 3.5305.160 50.610 81.040 137.140 2003 4 9.190 6 .91056.100 20.590 3.8306.010 56.66447.320 78.280 134.944 2004 49.028 7.636 22.200 3.5005.260 48.94444.172 71.895 120.839 2005 44.049 4.895 19.176 3.3045.243 48.26241.016 70.685 118.947 2006 41.300 6.962 21.565 2.9245.180 45.86239.110 66.546 112.408 2007 39.574 6.288 19.019 2.6715.746 200845.57038.571 66.335 111.905 3 9.237 6.333 19.218 2.5625.984 47.57440.413 68.906 116.480 2009 41.346 6.228 20.080 2.5795.834 Source:Hennepin County, Minnesota Taxpayer Services Department Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service are based on each year's requirements. 123 Schedule 7 CITY OF HOPKINS PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND TEN YEARS AG O 20092000 PercentagePercentage of Total of Total CityCity TaxTaxTaxTax CapacitCapacitCapacitCapacit yyyy TaxpayealueRanaluealueRanalue rVkVVkV Super Valu1,114,910$ 16.38%932,235 $ 1 6 .45% Excelsior Crossings, LLC439,250 22.51- -- Greenfield Apartments, LLP274,375 31.57183,595 8 1 .27 Duke Realty Ltd Partnership249,250 41.43440,964 2 3 .05 Southwest Real Estate, Inc.243,750 51.40328,464 3 2 .27 Hines Reit Mpls Ind LLC229,250 61.31- -- Hopkins Real Estate, LLC229,250 71.31- -- Ramsgate Apartments LLC225,000 81.29259,002 4 1 .79 Oak Ridge Country Club167,590 90.96- -- Steel & Bakken Investments LLC135,250 100.77- -- 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$ 3,307,87518.94%3,096,622$ %21.44 Total City 2009/2000 tax capacity17,466,343$$14,442,812 Source: Hennepin County, Minnesota Assessor's Office No tes: 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. 124 125 126 Schedule 10 CITY OF HOPKINS RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS General Bonded Debt Outstanding Percentage of Less: Amt GeneralAvailable in TotalActual Taxable alue of Pe FiscalObligationDebt ServicePrimaryVr YearBondsFundsGovernmentPropertyCapita 20001,615,000$ 184,143$ 1,430,857 $ 0.180%$ 83.46 20012,760,000 1,501,980 1,258,020 0.142% 73.38 20021,305,000 173,454 1,131,546 1.146% 65.60 20031,145,000 156,772 988,228 1.239% 56.28 2004985,000 175,121 809,879 0.974% 45.90 2005830,000 181,078 648,922 0.884% 36.71 2006675,000 180,401 494,599 0.772% 28.65 200710,450,000 682,307 9,767,693 0.720% 562.43 20089,855,000 591,600 9,263,400 0.677% 528.55 20099,245,000 472,721 8,772,279 0.519% 501.82 Notes: 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 Estimated EstimatedShare of Net DebtPercentageOverlapping OutstandingApplicableDebt Overlapping: Hennepin County600,494,319$ 1.19%7,145,882$ Hopkins ISD 270156,028,964 16.68%26,025,631 St. Louis Park ISD 28354,914,328 41.00%22,514,874 Hennepin Suburban Park District71,017,752 1.58%1,122,080 Hennepin Regional RR Authority42,430,624 1.19%504,924 Metropolitan Council131,613,280 0.54%710,712 Total Overlapping58,024,103 City of Hopkins Direct Debt8,345,492$ 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. 128 129 Schedule 13 CITY OF HOPKINS PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS Water Revenue BondsStorm Sewer Revenue Bonds Fiscal Debt ServiceDebt Service eaRevenuePrincipalInterestCoverageRevenuePrincipalInterestCoverage Yr 2000-$$ 1.91162,992 $ $ -$ --701,757$ 205,000 20011,053,414181,0493.56176,5961.78 115,000 723,825 230,000 2002894,543100,00096,6684.551,840,000141,3790.36 708,852 2003967,389105,00084,0795.12113,1781.90 690,367 250,000 2004844,017110,00042,9125.52141,6471.57 741,831 330,000 2005998,129115,00079,5325.13130,2131.50 682,497 325,000 20061,083,67575,7335.54119,4451.72 120,000 775,261 330,000 20071,133,24869,6995.82111,6051.57 125,000 724,778 350,000 20081,188,61069,6995.9598,8461.56 130,000 725,029 365,000 20091,339,39053,4406.9279,4371.80 140,000 800,843 365,000 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 YEAR S PersonalPe r Income (2)Capita FiscalPersonalSchoolUnemploymen (thousandst YeaPopulation (1)Income (2)Enrollment (3)Rate (4) rof dollars) 200017,145157,964 32,017 11,532 2.7 200117,145162,578 32,631 10,903 3.5 200217,250166,968 33,283 10,948 4.4 200317,559173,498 34,378 11,447 4.6 200417,643183,821 36,199 11,416 4.3 200517,675190,286 37,275 10,896 3.7 200617,263200,296 38,944 10,828 3.9 200717,367213,022 41,105 10,770 4.5 200817,526223,288 42,772 10,760 6.4 200917,481218,823 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 20092000 PercentagePercentage of Total of Total TaxpayerEmployeesRankEmploymentEmployeesRankEmployment SuperValu1,350111.648%1,540112.856% ISD 270 Hopkins (1)1,222210.5441,430611.938 Cargil90037.765--- Augustana Chapel View Care Center21941.890--- Oak Ridge Country Club18451.58818091.503 Rudy Luther's Hopkins Honda15761.355--- Thermotech15271.31132542.713 City of Hopkins12981.113177101.478 Hopkins Care Center12591.079--- SunGard Financial Systems105100.906--- Alliant Techsystems--- 60025.009 ADC Telecommunications--- 40033.339 PGI Fulfillment, Inc.--- 30152.513 Advance Circuits--- 20771.728 Quality Assured Label, Inc.--- 18581.544 Total$ 27.5503,193 %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 Schedule 16 CITY OF HOPKINS FULL-TIME EQUIVALENT CITY EMPLOYEES BY TYPE, LAST TEN FISCAL YEARS Full-time-Equivalent Employees as of December 31, 2000200120022003200420052006200720082009 General Government Administrative Services4.65 4.53 5.11 5.11 3.53 5.55 5.55 5.15 5.05 4.95 Finance3.95 4.00 4.00 4.00 4.30 4.60 4.60 4.60 4.60 4.60 Municipal Building2.00 2.00 1.50 1.50 0.85 1.40 1.45 1.45 1.45 1.45 Community Services10.10 10.30 10.30 10.30 9.74 8.90 8.90 9.48 9.85 9.95 Public Safety Police37.50 37.50 40.25 40.25 39.00 37.50 38.50 39.40 39.45 40.00 Fire0.80 0.80 0.90 0.90 0.90 1.20 1.20 1.20 1.20 1.20 Public Works23.50 22.67 23.05 23.05 20.00 19.50 18.60 18.59 18.60 18.70 Recreation ctivity Cente 3.653.32 3.66 3.66 2.55 4.10 4.10 4.00 3.30 3.30 Ar Skate Park- - - - - - 0.05 0.05 0.05 0.05 Planning & Zoning1.85 1.85 1.28 1.28 1.20 1.20 1.20 1.20 1.15 1.15 Total General Government87.67 87.30 90.05 90.05 82.07 83.95 84.15 85.12 84.70 85.35 Special Revenue Funds Economic Development1.80 1.80 2.37 2.37 2.40 1.60 1.60 1.60 1.78 1.75 Paratransit0.15 0.15 0.15 0.15 0.20 0.20 0.20 0.20 0.20 0.20 Housing Rehabilitation1.05 1.05 1.05 1.05 0.65 0.70 0.70 0.70 0.85 0.85 Parking1.30 1.80 1.80 1.80 1.20 2.00 2.00 1.00 1.00 1.00 Section 81.30 1.20 1.20 1.20 1.40 1.40 1.40 1.35 - - 1.05 0.58 0.58 0.07 0.05 0.05 0.10 0.10 0.10 Communication1.05 Depot Coffee House1.50 0.67 0.73 0.73 1.08 1.93 - 0.05 1.00 1.00 rt Cente -- 3.92 3.72 4.22 4.05 4.05 4.05 4.05 Ar Total Special Revenue Funds8.15 7.72 7.88 11.80 10.72 12.10 10.00 9.05 8.98 8.95 Enterprise Funds Water3.82 3.82 4.18 4.18 3.56 3.24 3.25 3.25 3.76 3.67 3.713.81 3.35 3.35 3.23 3.55 3.56 3.56 4.07 4.08 Sanitary Sewe r Refuse3.27 3.68 3.68 3.68 3.89 4.15 4.08 4.08 4.09 4.12 Storm Sewer0.58 0.82 0.62 0.62 0.47 0.47 0.46 0.46 0.46 0.46 Pavilion/Ice Arena2.82 2.82 2.37 2.37 2.44 2.44 2.90 2.72 3.80 3.80 rt Cente 3.783.88 3.92 - - - - - - - Ar Skate Park- 0.35 0.38 0.38 - - - - - - 1.901.90 1.90 1.90 1.90 1.90 2.40 2.45 2.05 2.05 Housing and Redevelopmen t Total General Government20.08 20.88 20.40 16.48 15.49 15.75 16.65 16.52 18.23 18.18 Total 115.90115.90 118.33118.33108.28111.80110.80110.69 111.91 112.48 Source: City Finance Office 133 CITY OF HOPKINS OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Years Fiscal Function/Program20002001200220032004 General Government Elections21212 Registered voters8,8129,1019,1388,83011,518 Number of votes cast8,0232,3906,6299098,880 Voter participation (registered)91.1%26.3%72.5%10.3%77.1% Public Safety Police Total Calls for Service11,69912,51815,16117,11419,648 Sworn Officers2224242425 Arrests1,1239921,2011,2291,232 911 Calls for ServiceN/AN/A6,2077,1925,513 Traffic StopsN/A4,0252,0052,8133,044 Parking CitationsN/A2,2191,9392,7051,506 Fire Fires4851435248 False Alarm117117132113103 Fire Runs320342330329326 Medical Runs189216213148113 Average Response Time (minutes)5.25.05.15.15.3 Inspections Building Permits443498487498542 Value of Building Permits$17,051,981$17,070,262$34,562,884$40,363,863$34,316,423 Public Works Miles of seal coatingN/AN/A444 Miles of crack sealingN/AN/A3.253.253.25 Sidewalk repairs in square feetN/AN/A2,8752,8752,875 Alley repairs in square yardsN/AN/A173173157 Culture and Recreation Art Center Bookings N/AN/A2,9283,5515,598 Reserved HoursN/AN/A15,36922,33536,950 Customer Visits for Events/ActivitiesN/AN/A156,400174,100182,800 Water Gallons of water pumped (in millions)891.3907.9774.6780.2732.4 Number of well house inspections2,4882,4882,4882,4882,488 Number of hydrants flushed100+100+100+100+100+ Water Rate$ 1.20$ 1.20$ 1.20$ 1.20$ 1.40 Sanitary Sewer Sanitary sewage flow (in millions of gallons)637.6717.8678.4634.3653.2 Miles of sewer lines jettedn/an/an/an/a14.7 Number of manholes checked/cleaned262292222262292 Lift Station Maintenance checks4,3744,3744,3744,3744,374 Sewer Rate$ 2.25$ 2.25$ 2.25$ 2.25$ 2.25 Refuse Number of refuse accounts2,6632,6642,6632,6952,670 Tons of refuse collected2,7802,8273,2802,6242,671 Tons of recycled material (residential)1,2191,2891,0821,3051,248 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 hours1,4631,4781,4791,4871,521 Turf use hours485405403450464 Mezzanine rental use0000162 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 r Yea 20052006200720082009 12121 9,70810,6218,33011,2339,548 2,6016,2791,1468,835861 26.8%59.1%13.8%78.7%9.0% 19,04918,56719,13719,44019,238 2626262626 1,2721,1991,216879781 4,9084,5474,5884,6584,519 2,9163,3214,2873,0422,698 1,122841747647925 7659704538 10710170101107 337297350291220 12168596756 5.35.34.34.34.2 365494377897381 $32,333,498$14,272,117$50,544,210$45,074,024$54,688,290 443.22.60.55 3.253.252.884.973.71 2,8752,8754,2794,9306,228 143130253238142 5,5985,5706,0545,5935,392 36,95035,71039,06034,76033,780 182,800202,000203,000212,000203,100 743.6785.5794.7774.0813.0 2,4882,4882,4882,4882,484 100+100+100+100+130 $ 1.40$ 1.40$ 1.40$ 1.65$ 1.86 647.3638.2641.3626.2580.2 15.014.617.314.614.2 2222624413441,290(2) 4,3744,3744,3743,8554,312 $ 2.25$ 2.50$ 2.50$ 2.70$ 3.10 2,6732,7662,6702,6782,689 2,6432,5492,4482,3932,335 1,1851,1181,1381,0801,194 $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 1,4331,4431,4581,4601,456 362407442479624 351339345400495 135 Schedule 18 CITY OF HOPKINS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Years Fiscal Year Function/Program2000200120022003200420052006200720082009 Public Safet y Police Stations1111111111 Patrol Units9101010101011111111 Fire Stations1111111111 Public Works Highways (miles)3.573.573.573.573.573.573.573.573.573.57 County Highways5.695.695.695.325.325.325.325.325.325.32 City Streets (miles)47.1347.1347.1347.5047.5047.5047.5047.5047.5047.50 Alleys (miles)9.529.529.529.529.529.529.529.529.529.52 Streetlights350350350360360398398398398398 Traffic Signals44444444444444444444 Refuse collection trucks3333333333 Culture & Recreation Parks Parks16161616161616161616 Park Trails3333444444 Park Acres9999102102104104104104104104 Park Shelters10101010101010111111 Playgrounds11111111111111111111 Skateboard Park/Inline Skating0111111111 Skating Rinks7777777777 Hockey Rinks6666665555 Basketball Courts6666666666 Softball Fields4444444444 Swimming Beach1111111111 Tennis Courts12121212888888 Volleyball Courts2222222222 Watermains Distribution System (miles)52.6052.6052.6052.6052.6052.6052.6052.6052.6052.60 Fire Hydrants560560560560560560560560560560 Storage Capacity (gallons in thous)3,2003,2003,2003,2003,2003,2003,2003,2003,2003,200 Water Connections3,1263,1263,1443,1573,1633,1633,1683,1683,1683,168 Sanitary Sewer Collection System (miles)45.4645.4645.4645.4645.4645.4645.4645.4645.4645.46 Sewer Connections3,0503,0503,0643,0773,0813,0813,0863,0863,0863,086 Storm Sewer Pipe (miles)21.4021.4021.4021.4021.4021.4021.4021.4021.4021.40 Parking Parking Lots7777777777 Parking Ramp1111111111 Source:Various City Departments 136