2010 City of Hopkins, MN Annual ReportCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
of the
CITY OF HOPKINS, MN
For The Year Ended
December 31, 2010
Prepared by the Department of Finance
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
T
YEAR ENDED DECEMBER 31, 201
0
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 Net Assets - Proprietary Fund40
s
Statement of Revenues, Expenses, and Changes in
Net Assets - Proprietary Fund42
s
Statement of Cash Flows - Proprietary Fund43
s
Notes to Financial Statements46
B.Required Supplementary Informatio
n
Schedule of Funding Progress - Other Postemployment Benefit Pla70
n
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
T
YEAR ENDED DECEMBER 31, 201
0
Page
C.Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Fund73
s
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Fund81
s
Schedules of Revenues, Expenditures, and Changes in Fun
d
Balances - Budget and Actual:
Special Revenue Funds:
State Chemical Assessment 89
Economic Developmen90
t
Real Estate Purchases and Sales91
Paratransi92
t
Housing Rehab93
Parking94
Communications95
Depot Coffee House96
Art Cente97
r
Tax Increment 1.2 - Entertainment Cente98
r
Tax Increment 2.1 - R.L. Johnson Compan99
y
Tax Increment 2.6 - Sonoma Projec100
t
Tax Increment 2.9 - Oaks of Mainstree101
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
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
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, 201
0
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, 2010
SECTION I
INTRODUCTORY SECTION
1
2
June 29, 2011
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, 2010 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, 2010,
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, 2010, 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 34-38 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
89-104.
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 2010 was $7.6 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 2010 include the following:
Activity Valuation
Commercial Additions/Alterations:
Excelsior Crossing Phase III $40,000,000
Hopkins Health & Wellness Center Expansion $ 3,000,000
Efforts are being made for continued development and growth for 2011 and beyond. It is
anticipated that approximately $191,000,000 of construction will also take place in the City of
Hopkins during the next several years.
Some anticipated projects for 2011-2014 include the following:
Project Valuation
Hopkins Cold Storage Site Redevelopment $62,000,000
Marketplace & Main Apartments/Townhomes $56,000,000
Fifth Avenue Flats $40,000,000
th
8 Avenue Redevelopment $30,000,000
Mayon Plastics Site Redevelopment $ 3,000,000
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 2012, projects to be constructed include the redevelopment of the Park Nicollet Clinic site into a
retail/housing development of approximately 110 housing units, Phase I of Market Place & Main
apartments and completion of phase III of the Excelsior Crossing project which is 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
Minneapolis the Southwest LRT will connect with the Hiawatha and Central LRT lines.
Construction of the light rail line is expected to begin in 2017 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 for the third year. This resulted in a 2010 budget shortfall of $244,667 for the
City of Hopkins. It is the city’s policy to maintain a balanced budget, therefore budget adjustments
to delay filling open positions, elimination of non-essential capital items, small cuts across all
departments and use of 2009 budget reserves were implemented thus achieving a balanced budget
for 2010.
Major Initiatives
For 2010, the staff, following specific directives of the council and the city manager, has been
involved in a variety of projects throughout the year. These projects reflect the government’s
6
commitment to ensuring that its citizens are able to live and work in a safe environment and that the
needs for services are met.
In 2010, we accomplished our annual street repair and improvements, at a cost of approximately
$1,108,200. The projects included phase 2 of the Parkridge neighborhood street reconstruction and
thth
5 Street from 11 Ave to corporate limits reconstruction, replacing infrastructure, roadway
surface, curb and gutters, parking lot surfaces and alley reconstruction.
The water department completed the Moline and Well #1 improvements totaling $596,000, the
sewer department completed upgrades to Life Station #1 at a cost of $324,300 and the storm sewer
department started work on the Nine Mile Creek Bank Stabilization incurring project costs of
$234,600. In 2010, the water, sewer and storm sewer departments also completed in conjunction
with the street improvements, infrastructure reconstruction projects totaling $490,000.
Other miscellaneous improvement projects in 2010 included City Hall boiler upgrade ($109,000),
beginning work on the Emergency Vehicle Preemptive Signal Upgrade at the Highway 169
interchanges ($3,500) 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, 2009. 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,
James A. Genellie Christine M. Harkess, CPA, CGFM
Assistant City Manager Finance Director
8
ç
Organizational Chart
CITIZENS
CITY
Boards &
City Attorney
COUNCIL
Commissions
AdministrativeCenter for the
City Manager
ServicesArts
City of
Minnetonka
Community
FinanceFireRecreation
Services
AssessingFire & MedicalDepot Coffee
Accounting
City ClerkResponseHouse
Payroll
CommunicationsPrevention
Utility Billing
InformationEmergency
ServicesPreparedness
Inspections
Reception
Activity Center
Planning &
EconomicPolicePublic Works
Development
Economic
Building Maint. &
Patrol
Development
Equipment Services
Investigation
Housing
Engineering
Communication
Planning &
Parks & Forestry
Crime
Zoning
Street/Traffic/Refuse
Prevention
Public Housing
Water & Sewer
Pavilion/Ice Arena
10
THE CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPOR
T
CITY OFFICIALS
December 31, 2010
CITY COUNCIL
Ter
m
Expires
Eugene MaxwellMayo12-31-11
r
Kristi HalversoCouncilmembe12-31-13
nr
Rick BrauseCouncilmembe12-31-11
nr
Bruce RowaCouncilmembe12-31-11
nr
Cheryl YouakiCouncilmembe12-31-13
mr
CITY MANAGE
R
Richard B. GetschoResigned March 2011
w
James A. Genellie, Acting/AssistanAppointe
td
FINANCE DIRECTO
R
Christine M. HarkessAppointe
d
11
CITY OF HOPKINS, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2010
SECTION II
FINANCIAL SECTION
12
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Hopkins, Minnesota
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Hopkins, Minnesota (the
City) as of and for the year ended December 31, 2010, which collectively comprise the City’s basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City's
management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the City of Hopkins, Minnesota as of December 31, 2010, and the respective changes in
financial position and cash flows, where applicable, thereof and the budgetary comparison for the general fund for
the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 23, 2011, on our
consideration of the City of Hopkins, Minnesota’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
The management’s discussion and analysis and schedule of funding progress as listed in the table of contents is
not a required part of the basic financial statements but is supplemental information required by accounting
principles generally accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquires of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion on it.
(13)
An independent member of Nexia International
Honorable Mayor and
Members of the City Council
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Hopkins’ basic financial statements. The introductory section, combining and individual
fund statements and schedules and the statistical section are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The combining and individual fund statements and schedules
have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory section and statistical section have not been subjected to the audit procedures applied in the audit of
the basic financial statements and, accordingly, we express no opinion on them.
LarsonAllen LLP
Minneapolis, Minnesota
June 23, 2011
(14)
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, 2010. 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 $62.4 million. Of
this amount, (unrestricted net assets), approximately $4.7 million may be used to meet the
City’s ongoing obligations to citizens and creditors.
The City’s total net assets increased by approximately $1.0 million.
As of the close of the current fiscal year, the City of Hopkins governmental funds reported
combined ending fund balances of approximately $16.1 million, an increase of
approximately $1.2 million in comparison with the prior year. The increase was due to
conservative spending, the sale of improvement bonds and refunding bonds on storm sewer
bonds. Approximately $5.54 million of fund balance is available for spending at the City’s
discretion (unreserved, undesignated fund balance).
As of December 31, 2010, unreserved fund balance for the General Fund was approximately
$4.07 million, or 41% of total general fund expenditures.
The City of Hopkins total debt decreased by approximately $1.27 million during the current
fiscal year due to bond refunding payments and bond maturities. The city also sold
refunding bonds allowing for two bond issues totaling $1.235 million to be refunded on
February 1, 2011.
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
15
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).
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-two 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, 2005-B Taxable Tax
Increment Bonds of 1997 Refunding Bonds, 2009-B Housing Improvement Bonds of 1999A
Refunding Bonds, 2009-B Housing Improvement Bonds of 1999B Refunding Bonds, Municipal
State Aid Construction fund, and Permanent Improvement Revolving fund all of which are
considered to be major funds. Data from the other thirty-six 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. A
budgetary comparison statement has been provided for the General 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 30-38 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 40-44 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 46-68 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 70 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 73-104 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 $62,379,154 at the close
of the most recent fiscal year.
Approximately three quarters (77%) 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
201020092010200920102009
Assets
Current and other $27,767,531$27,868,693$2,393,028$3,586,315$30,160,559$31,455,008
assets
45,988,219 46,014,532 20,515,860 19,747,908 66,504,079 65,762,440
Capital assets
Total assets73,755,750 73,883,225 22,908,888 23,334,223 96,664,638 97,217,448
Liabilities
Other liabilities6,388,967 8,975,396 1,617,594 2,373,766 8,006,56111,349,162
Long-term liabilities
22,339,986 20,185,544 3,938,937 4,310,219 26,278,923 24,495,763
outstanding
Total 28,728,953 29,160,940 5,556,531 6,683,985 34,285,484 35,844,925
Net Assets
Invested in capital
assets, net of related
32,823,582 31,700,690 16,279,028 13,484,942 49,102,61045,185,632
debt
Restricted8,613,114 11,952,783 - - 8,613,11411,952,783
Unrestricted3,590,101 1,068,812 1,073,329 3,165,296 4,663,4304,234,108
Total net $45,026,797 $44,722,285 $17,352,357 $16,650,238 $62,379,154 $61,372,523
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
($4,663,430) 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 $1,006,631 during the current fiscal
year.
Governmental and business-type activities.
Governmental activities increased the City of
Hopkins net assets by $304,512 and business-type activities increased net assets by $702,119. Key
elements of the increases are as follows:
18
City of Hopkins Changes in Net Assets
For the Year Ended December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201020092010200920102009
Revenues:
Program revenues:
Charges for services $ 791,246 $ 875,470 $ 5,433,821 $ 5,208,666 6,225,067$$6,084,136
Operating grants and
1,894,777 2,441,622 216,596 150,814
contributions2,111,3732,592,436
Capital grants and
567,370 745,505 328,515 142,691
contributions888,196
895,885
General revenues:
Property taxes 9,827,814 9,353,966 - - 9,827,8149,353,966
Tax increments 2,147,517 1,636,609 - - 2,147,5171,636,609
Grants and contributions
not restricted
306,215 309,609 - - 306,215309,609
Investment earnings 121,229 170,960 9,138 12,841 130,367183,801
Gain on sale of capital assets - 9,796 - 1,367 11,163-
Total revenues 15,656,168 15,543,537 5,988,070 5,516,379 21,644,238 21,059,916
Expenses:
General government 1,693,275 1,679,040 - - 1,693,275 1,679,040
Public safety 6,243,813 6,249,519 - - 6,243,813 6,249,519
Health and welfare 180,895 278,002 - - 180,895 278,002
Highways and streets 3,054,311 3,069,078 - - 3,054,311 3,069,078
Urban redevelopment and
housing 1,914,779 1,690,861 - - 1,914,779 1,690,861
Culture and recreation 1,505,513 1,482,349 - - 1,505,513 1,482,349
Interest on long-term debt 895,874 1,025,771 - - 895,874 1,025,771
Water - - 1,196,607 1,221,556 1,196,607 1,221,556
Sewer - - 1,844,309 1,741,115 1,844,309 1,741,115
Storm sewer - - 420,619 403,231 420,619 403,231
Refuse - - 738,398 786,522 738,398 786,522
Pavilion/ice arena - - 398,354 401,598 398,354 401,598
Housing and redevelopment
authority - - 542,324 528,542 542,324 528,542
Loss on sale of capital assets 8,196 - 340 - 8,536 -
Total expenses 15,496,656 15,474,620 5,140,951 5,082,564 20,637,607 20,557,184
Increase in net assets before transfers 159,512 68,917 847,119 433,815 1,006,631 502,732
Transfers 145,000 145,000 (145,000) (145,000) --
Increase in net assets304,512213,917702,119288,8151,006,631502,732
Net assets - January 1 44,722,285 44,508,368 16,650,238 16,361,423 61,372,523 60,869,791
Net assets - December 31 $ 45,026,797 $ 44,722,285 $ 17,352,357 $ 16,650,238 $ 62,379,154 $ 61,372,523
19
Governmental activities:
Property taxes increased in 2010 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 two bond issues, one for street improvements and one
for refunding three bond issues.
Revenues by Source - Governmental Activities
Investment earnings
Grants and
1%
contributions not
Charges for services
restricted
5%
2%
Operating grants and
contributions
Tax increments
12%
14%
Capital grants and
contributions
4%
Property taxes
62%
Expenses and Program Revenues - Governmental Activities
$7,000,000
$6,000,000
Program revenues
Expenses
$5,000,000
$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
5%
Operating grants
and contributions
4%
Charges for services
91%
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 $16,110,603, an increase of $1,193,092 in comparison with the prior year.
The key factor of the increase is refunding bonds sold for two Housing Improvement Areas and
improvement bonds sold for street improvements 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 34% of fund balance ($5,540,033) constitutes unreserved, undesignated 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, 6) for construction projects and 7) 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 $4,071,049. This represents 95.7% 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 41.1% of total general fund expenditures while
total fund balance represents approximately 43.0% of that same amount.
The fund balance of the City of Hopkins general fund increased by $125,474 during the current
fiscal year. Expenditures exceeded revenues by $137,073 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 2009B Housing Improvement refunding bonds of 1999A bond fund has a total fund balance of
$229,858 all of which is reserved for the payment of debt service. The fund balance decreased by
$903,498 as funds were transferred to the 1999A Housing bond fund for the call of those bonds.
The 2009B Housing Improvement refunding bonds of 1999B bond fund has a total fund balance of
$445,319, all of which is reserved for the payment of debt service. The fund balance decreased by
$1,343,532 as funds were transferred to the 1999B Housing bond fund for the call of those bonds.
The 2005B Refunding Taxable Tax Increment Bonds of 1997 bond fund has a total fund balance of
$360,724, all of which is reserved for the payment of debt service. The fund balance increased by
$32,336 as tax revenues exceeded current debt payment requirements.
22
The Municipal State Aid Construction fund has a total fund balance of $1,303,108 which is
unreserved and designated for construction projects. The fund balance increased by $489,291 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.
The Permanent Improvement Revolving fund has a total fund balance of $1,814,430 which is
unreserved and designated for construction projects. The fund balance increased by $1,846,247 as a
result of the sale of bonds for scheduled projects. Revenues in this fund are derived from special
assessments and taxes.
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 ($255,028). The
unrestricted net assets are used to pay for infrastructure improvements. The increase in net assets
amounted to $101,206 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 $91,418. The
unrestricted net assets are used to pay for infrastructure improvements. The decline in net assets
amounted to $79,468 and is due to total costs exceeding total 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 $206,893.
The unrestricted net assets are used to pay for infrastructure improvements. The growth in net
assets amounted to $359,632 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 ($123,360).
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
decreased by $32,708, however the Pavilion continues to work 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 $38,829 primarily due to a decrease in
license and permit revenue, fines and decreased interest income. This was offset by higher than
expected police charges for services, donations to police, fire and activity center, and sale of assets.
Expenditures were under the budget by $175,902 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 $125,474
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, 2010, amounts to $66,504,079 (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 $2,815,854 for infrastructure projects.
$1,311,088 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 $334,951. Major purchases included public works
equipment, public safety vehicles and equipment.
Vehicle and equipment deletions totaled $606,161. Deletions were a result of scheduled
replacements of public works, public safety vehicles and equipment.
24
City of Hopkins Capital Assets
(net of depreciation)
December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201020092010200920102009
Land$5,805,711$5,805,711$167,789$167,789$5,973,500$5,973,500
Buildings15,525,95915,999,0773,229,0463,362,22418,755,00519,361,301
Infrastructure- - 8,977,4438,718,7648,977,4438,718,764
Improvements17,974,03618,126,5474,744,9704,870,25022,719,00622,996,797
Vehicles1,802,2041,735,739296,406346,0712,098,6102,081,810
Equipment1,456,6761,588,657186,942209,4631,643,6181,798,120
Construction in progress3,423,6332,758,8012,913,2642,073,3476,336,8974,832,148
$45,988,219$46,014,532$20,515,860$19,747,908$66,504,079$65,762,440
Additional information on the City of Hopkins capital assets can be found in note 5 on pages 56-57
of this report.
Long-term debt.
At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $29,235,000. Of this amount, $2,315,000 comprises housing and redevelopment
authority lease revenue debt, $4,400,000 comprises tax increment redevelopment debt, and
$13,510,000 comprises general obligation and special assessment debt, all of which is backed by the
full faith and credit of the government. In February 2011 due to refunded bonds issued $405,000 of
tax increment redevelopment debt and $325,000 of special assessment debt will be called. Another
$3,930,000 is special fees debt for which the government is liable in the event of default by the
property owners subject to the fees. The remainder of the City of Hopkins debt, $5,080,000,
represents bonds secured solely by specified revenue sources (i.e., revenue bonds). Of that amount
$910,000 was refunded and will be called February 2011.
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental ActivitiesBusiness-Type ActivitiesTotal
201020092010200920102009
HRA lease revenue bonds$2,315,000 $2,440,000 $ $2,315,000- $2,440,000
- $
G.O. Tax increment bonds4,400,0003,200,000 4,400,000-3,200,000
-
G.O. Housing fee bonds3,930,0007,090,000 3,930,000-7,090,000
-
G.O. Redevelopment bonds110,000245,000 110,000-245,000
-
G.O. Capital improvement bonds8,515,0009,000,000 8,515,000-9,000,000
-
G.O. Special assessment bonds4,885,0002,330,000 4,885,000-2,330,000
-
Revenue bonds- 5,080,000-5,080,0006,200,000
6 ,200,000
$24,155,000$24,305,000$5,080,000$6,200,000$29,235,000$30,505,000
The City of Hopkins total bonded debt decreased by $1,270,000 or 4.2% during the current fiscal
year. The decrease is due the net effect of scheduled bond maturities, bond called and bonds issued
in 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 taxable
market value. At December 31, 2010, the debt limit for the City is $47,120,694. Of the total debt,
$10,144,055 of general obligation and revenue bonds is applicable to the limit. The legal debt
margin is $36,976,639.
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 59-
63 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 2011 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
as a result of economic conditions. The State of Minnesota’s budget challenges resulted in the
unallotment of state aids for the third year. The City’s population would remain constant. As a
result of these factors the City prepared a budget for 2011 that included a modest increase of 2.25%
in expenditures that included small 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 $4,071,049
or 41% 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 2% of the
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, 2010
Primary Government
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Assets
Cash and investments$ 2,260,73016,809,349$ 19,070,079$
Taxes receivable327,873-327,873
Special assessments receivable5,811,406-5,811,406
Accounts receivable457,942415,185873,127
Intergovernmental receivable2,415,73160,1152,475,846
Interest receivable33,5413,98637,527
Internal balances542,313(542,313)-
Inventories114,55729,743144,300
Prepaid items68,01418,69186,705
Deferred charges 374,70737,891412,598
Long-term receivables90,000109,000199,000
Land held for resale722,098-722,098
9,229,3443,081,05312,310,397
Capital assets, non depreciable
Capital assets, net of accumulated depreciation36,758,87517,434,80754,193,682
Total assets73,755,75022,908,88896,664,638
Liabilities
590,254150,665740,919
Accounts payable
Salaries payable335,24829,671364,919
Due to other governments4,33526,23730,572
Accrued interest payable337,87153,595391,466
2,130,2843,2002,133,484
Unearned revenue
Non current liabilities:
673,66079,226752,886
Compensated absences due within one year
Compensated absences due in more than one year192,79360,298253,091
Net OPEB liability108,16919,685127,854
Capital lease due within one year37,315-37,315
Capital lease due in more than one year318,241-318,241
2,280,0001,275,0003,555,000
Bonds due within one year
21,720,7833,858,95425,579,737
Bonds due in more than one year
28,728,9535,556,53134,285,484
Total liabilities
Net Assets
Invested in capital assets, net of related debt32,823,58216,279,02849,102,610
Restricted for:
Economic development925,064-925,064
Debt service7,688,050-7,688,050
3,590,1011,073,3294,663,430
Unrestricted
$ 17,352,35745,026,797$ 62,379,154$
Total net assets
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, 2010
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Revenues
Taxes
General property taxes$7,267,516$7,267,516$7,330,960$63,444
Fiscal disparities1,202,5021,202,5021,167,449(35,053)
Total Taxes8,470,0188,470,0188,498,40928,391
Licenses and permits
Business 146,815146,815128,441(18,374)
Non-business 310,095310,095294,312(15,783)
Total Licenses and permits456,910456,910422,753(34,157)
Intergovernmental
Market value aid credit - -2,6902,690
State grants178,010178,010191,26913,259
Insurance premium - police177,715177,715172,078(5,637)
Insurance premium - fire85,00085,00068,132(16,868)
Federal grants - -2,1132,113
Total Intergovernmental440,725440,725436,282(4,443)
Fines and forfeitures
Court fines141,000141,000119,119(21,881)
Charges for services
General government10,75010,75013,4692,719
Public safety116,150116,150156,47440,324
Public works2,2502,2503,7031,453
Recreation54,50054,50052,154(2,346)
Total Charges for services183,650183,650225,80042,150
Other
Investment earnings75,00075,00017,571(57,429)
Franchise fees290,000290,000283,015(6,985)
Miscellaneous15,90015,90031,42515,525
Total Other380,900380,900332,011(48,889)
Total Revenues10,073,20310,073,20310,034,374(38,829)
Expenditures
General Government:
Mayor and council
Salaries and employee benefits26,49726,49726,751(254)
Materials, supplies and services46,65046,65035,60411,046
Total73,14773,14762,35510,792
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, 2010
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
General Government, (continued):
Administrative services
Salaries and employee benefits$481,987$481,987$477,038$4,949
Materials, supplies and services55,32755,32739,77015,557
Total537,314537,314516,80820,506
Less expenditures charged to other activities(104,000)(104,000)(104,000) -
Net433,314433,314412,80820,506
Finance
Salaries and employee benefits341,212341,212344,078(2,866)
Materials, supplies and services67,06867,06875,898(8,830)
Total408,280408,280419,976(11,696)
Less expenditures charged to other activities(218,241)(218,241)(223,486)5,245
Net190,039190,039196,490(6,451)
Legal Services
Materials, supplies and services135,000135,000126,2338,767
Municipal Building
Salaries and employee benefits127,281127,281126,2241,057
Materials, supplies and services219,003219,003173,66445,339
Total346,284346,284299,88846,396
Less expenditures charged to other activities(40,000)(40,000)(40,000) -
Net306,284306,284259,88846,396
Elections
Salaries and employee benefits32,35632,35634,717(2,361)
Materials, supplies and services27,24927,24924,2283,021
Total59,60559,60558,945660
City Clerk and Reception
Salaries and employee benefits112,351112,351106,9685,383
Materials, supplies and services19,57819,57817,2482,330
Total131,929131,929124,2167,713
Less expenditures charged to other activities(37,000)(37,000)(37,000) -
Net94,92994,92987,2167,713
Assessing
Salaries and employee benefits82,33682,33682,493(157)
Materials, supplies and services109,729109,729100,6529,077
Total192,065192,065183,1458,920
Less expenditures charged to other activities(24,000)(24,000)(24,000) -
Net168,065168,065159,1458,920
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, 2010
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
General Government, (continued):
Planning and economic development
Salaries and employee benefits$124,757$124,757$123,365$1,392
Materials, supplies and services16,93016,9307,6059,325
Total141,687141,687130,97010,717
Less expenditures charged to other activities(20,000)(20,000)(20,000) -
Net121,687121,687110,97010,717
Total General Government
1,582,0701,582,0701,474,050108,020
Public Safety:
Police
Police Administration
Salaries and employee benefits383,528383,528374,7018,827
Materials, supplies and services96,72890,16483,8006,364
Net480,256473,692458,50115,191
Police Patrol and Investigation
Salaries and employee benefits2,436,2482,436,2482,482,771(46,523)
Materials, supplies and services346,628344,092302,59141,501
Total2,782,8762,780,3402,785,362(5,022)
Police Services
Salaries and employee benefits918,265918,265909,7058,560
Materials, supplies and services184,781193,881155,65338,228
Total1,103,0461,112,1461,065,35846,788
Total Police4,366,1784,366,1784,309,22156,957
Fire
Salaries and employee benefits504,965504,965667,955(162,990)
Materials, supplies and services289,552289,552295,434(5,882)
Total794,517794,517963,389(168,872)
Inspections
Salaries and employee benefits378,222378,222377,1911,031
Materials, supplies and services73,68472,88462,32510,559
Total451,906451,106439,51611,590
Total Public safety
5,612,6015,611,8015,712,126(100,325)
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, 2010
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
Health and Welfare:
Inspections
Salaries and employee benefits$122,325$122,325$132,897$(10,572)
Materials, supplies and services25,47426,27427,316(1,042)
Total147,799148,599160,213(11,614)
Total Health and welfare
147,799148,599160,213(11,614)
Highways and Streets:
Public works buildings and equipment services
Salaries and employee benefits235,349235,349233,4301,919
Materials, supplies and services92,14592,14571,85620,289
Total327,494327,494305,28622,208
Less expenditures charged to other activities(213,000)(213,000)(213,060)60
Net114,494114,49492,22622,268
Public Works Administration and Engineering
Salaries and employee benefits330,111330,111330,978(867)
Materials, supplies and services44,01944,01937,4316,588
Total374,130374,130368,4095,721
Less expenditures charged to other activities(213,000)(213,000)(203,432)(9,568)
Net161,130161,130164,977(3,847)
Streets and Alleys
Salaries and employee benefits363,960363,960399,525(35,565)
Materials, supplies and services585,442585,442522,88662,556
Total949,402949,402922,41126,991
Less expenditures charged to other activities(112,000)(112,000)(112,000) -
Net837,402837,402810,41126,991
Snow and Ice Removal
Salaries and employee benefits114,754114,754161,186(46,432)
Materials, supplies and services90,50690,50667,09323,413
Capital outlay - -2,169(2,169)
Total205,260205,260230,448(25,188)
Municipal parks and tree service:
Salaries and employee benefits534,502534,502489,54844,954
Materials, supplies and services293,687293,687249,85943,828
Total828,189828,189739,40788,782
Total Highways and Streets
2,146,4752,146,4752,037,469109,006
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, 2010
Variance with
final budget
Budgetpositive
OriginalFinalActual(negative)
Expenditures, (continued)
Culture and Recreation:
Activity center
Salaries and employee benefits$224,821$224,821$224,140$681
Materials, supplies and services101,597101,59786,49015,107
Total326,418326,418310,63015,788
Park and Recreation
Salaries and employee benefits49,73449,73439,69610,038
Materials, supplies and services147,906147,906153,209(5,303)
Total197,640197,640192,9054,735
Total Culture and Recreation
524,058524,058503,53520,523
Unallocated
Materials, supplies and services60,20060,2009,90850,292
Total Expenditures
10,073,20310,073,2039,897,301175,902
Other Financing (Uses):
Transfers out: - -(11,599)(11,599)
Net change in fund balance - -125,474125,474
Fund Balance - January 14,127,7864,127,7864,127,786 -
Fund Balance - December 31$4,127,786$4,127,786$4,253,260$125,474
The notes to the financial statements are an integral part of this statement.
38
39
40
41
42
43
44
NOTES TO THE
FINANCIAL STATEMENTS
45
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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
46
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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.
The2009B taxable housing improvement bonds of 1999A refunding 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.
The2009B taxable housing improvement bonds of 1999B 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.
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.
Thepermanent improvement revolving fund accounts for resources and accumulated payments for street
improvements funded with bonds and special assessments levied on benefited property.
The City reports the following major proprietary funds:
Thewater utility 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 utility 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.
47
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Thestorm sewer utility 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.
48
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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 a 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 prices.
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 accounted for using the consumption method and are valued at cost using the first-in/first-out
(FIFO) method.
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
49
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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. NET ASSETS/FUND EQUITY
Net assets represent the difference between assets and liabilities in the government-wide financial statements. Net
assets invested in capital assets, net of related debt, consists of capital assets net of accumulated depreciation,
reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net assets
are reported as restricted in the government-wide financial statements when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.
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.
50
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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.
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 1.
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, 2010, there were 8 notes/bond issues outstanding, with an aggregate principal amount payable of
approximately $34 million.
N.USE OF ESTIMATES
The preparation of financial statements in conformity with 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.
51
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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:
Bonds payable $ 24,000,783
Accrued interest payable 334,168
Net OPEB obligation 108,169
Net adjustment to reduce fund balance – total governmental
funds to arrive at net assets – governmental activities $ 24,443,120
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 $ 1,358,792
Depreciation expense (1,387,669)
Net adjustment to increase net changes in fund balances –
total governmental funds to arrive at changes in net assets
of governmental activities $( 28,877)
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 $3,045 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. $ (3,045)
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:
52
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Issuance of general obligation bonds $4,515,000
Less discounts (45,150)
Less deferred costs (49,233)
Principal repayments (4,665,000)
OPEB expense (4,814)
Amortization of net deferred issuance costs 31,101
Amortization of bond premium and discount 9,592
Prior year interest expense (409,860)
Accrue interest expense for current year 334,168
Net adjustment to decrease net changes in fund balances –
total governmental funds to arrive at changes in net assets
of governmental activities $( 284,196)
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.
53
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2010, actual expenditures exceeded the budgeted amounts in the following
funds:
State Chemical Assessment Team $ 81,004
Economic Development 9,712
Para-Transit 3,137
Communications 594
Tax Increment 1-2 Entertainment District 23,106
Tax Increment 2-6 Sonoma Project District 10
Tax Increment 2-9 Oaks of Mainstreet District 72
Tax Increment 2-11 Super Valu District 1,032,363
th
Tax Increment 1-3 5 Avenue Flats District 166,326
Tax Increment 1-4 Market Place & Main District 7,546
These over expenditures were funded by greater than anticipated revenues of the State Chemical Assessment
Team, Economic Development, and Tax Increment 2-11 Super Valu District funds, by available fund balances in
the Communication fund, by a transfer of revenues to the Paratransit fund and by future revenues in the Tax
Increment 1-2, 2-6, 2-9, 1-3 and 1-4 funds.
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, 2010. The Section 8 and Community Development Block Grant are non-budgeted funds.
C. FUND BALANCE DEFICITS
At December 31, 2010, 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 $ 55,464
Art Center 971,324
Tax Increment 1.2 Entertainment District 158,676
Tax Increment 2.6 Sonoma District 289,788
th
Tax Increment District 1.3 5 Avenue Flats 208,084
Tax Increment District 1.4 Marketplace & Main 2,149
D. NET ASSETS RESTRICTED BY ENABLING LEGISLATION
The government-wide statement of net assets reports $925,064 in restricted net assets for economic development,
of which $858,076 is restricted by enabling legislation.
54
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
4. DEPOSITS AND INVESTMENTS
As of December 31, 2010 the City had the following deposits and investments:
Investment Type Fair Value
Municipal obligations $ 1,406,853
Negotiable certificates of deposit 6,315,691
Money market 10,726,142
Deposits 621,393
Total fair value $19,070,079
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, 2010 the City had the following investment maturities:
Investment maturities (in years)
FairLessNo
Valuethan one1-5maturity
Investment Type:
Muncipal obligations1,406,853$ 670,569$ 736,284$ -$
Negotiable certificates of deposit6,315,6916,315,691-
-
Money market accounts10,726,142 10,726,142-
-
Demand deposits621,393 621,393-
-
$ 6,986,26019,070,079$ 736,284$$11,347,535
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 $10,000,000, a primary reporting dealer in U.S. Government
securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers.
55
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
The following table lists the credit quality ratings per Moody’s and/or Standard and Poor’s and/or Fitch of the
City’s investments at December 31, 2010.
Quality Ratings
FairFDIC
ValueAAAAA3AA2AA1InsuredUnrated
Investment Type:
Muncipal obligations1,406,853$ 401,085$653,103$-$-
$ $ 1 00,137$ 2 52,528
Negotiable certificates of deposit
6,315,691 6,315,691--
- - -
Money market accounts10,726,142 10,726,142-
- - - -
Demand deposits621,393 621,393-
- - - -
$19,070,079$653,103$6,315,691$11,347,535
$ 4 01,085$ 1 00,137$ 2 52,528
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
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, 2010 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.
– This is the risk associated with investing a significant portion of the City’s
Concentration of credit risk
investments (considered 5 percent or more) in the securities of a single issuer, excluding U.S. explicitly guaranteed
investments (Treasuries), investment pools, and mutual funds. As of December 31, 2010, the city had no
investments exceeding 5 percent or more for a single issuer.
(Remainder of page is left blank intentionally)
56
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2010 were as follows:
Beginning Ending
BalanceIncreasesDecreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated
$ 5,805,711 $ - $ - $ - $ 5,805,711
Land
2,758,801 1,283,972 - (619,140) 3,423,633
Construction in Progress
8,564,512 1,283,972 - (619,140) 9,229,344
Total not being depreciated
Capital assets, being depreciated
19,759,799 14,450 (7,332) - 19,766,917
Buildings
30,029,479 7,000 - 619,140 30,655,619
Other Improvements
3,935,721 334,951 (432,782) - 3,837,890
Vehicles
4,831,105 214,910 (173,379) - 4,872,636
Machinery & Equipment
58,556,104 571,311 (613,493) 619,140 59,133,062
Total being depreciated
Less accumulated depreciation:
(3,760,722) (484,523) 4,287 - (4,240,958)
Buildings
(11,902,932) (778,651) - - (12,681,583)
Other Improvements
(2,199,982) (242,434) 432,782 (26,052) (2,035,686)
Vehicles
(3,242,448) (354,032) 154,468 26,052 (3,415,960)
Machinery & Equipment
(21,106,084) (1,859,640) 591,537 - (22,374,187)
Total accumulated depreciation
Total capital assets, being
37,450,020 (1,288,329) (21,956) 619,140 36,758,875
depreciated, net
Governmental activities capital
assets, net
$ 46,014,532 $ (4,357)$ (21,956)$ - $ 45,988,219
57
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type Activities:
Capital assets, not being depreciated
$ 167,789 $ - $ - $ - $ 167,789
Land
2,073,347 1,531,882 (17) (691,948) 2,913,264
Construction in Progress
2,241,136 1,531,882 (17) (691,948) 3,081,053
Total not being depreciated
Capital assets, being depreciated
6,900,454 - - 81,155 6,981,609
Buildings
18,598,047 71,594 (6,696) 596,049 19,258,994
Infrastructure
5,836,434 - - - 5,836,434
Other Improvements
729,552 - - - 729,552
Vehicles
802,687 - (63,211) 14,744 754,220
Machinery & Equipment
32,867,174 71,594 (69,907) 691,948 33,560,809
Total being depreciated
Less accumulated depreciation:
(3,538,230) (214,333) - - (3,752,563)
Buildings
(9,879,283) (408,620) 6,352 - (10,281,551)
Infrastructure
(966,185) (125,279) - - (1,091,464)
Other Improvements
(383,481) (49,665) - - (433,146)
Vehicles
(593,223) (37,266) 63,211 - (567,278)
Machinery & Equipment
(15,360,402) (835,163) 69,563 - (16,126,002)
Total accumulated depreciation
Total capital assets, being
depreciated, net
17,506,772 (763,569) (344) 691,948 17,434,807
Business-type activities capital
assets, net
$ 19,747,908 $ 768,313 $ (361)$ - $ 20,515,860
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government $ 47,031
Public safety 256,293
Highways and streets 946,931
Urban redevelopment and housing 613
Culture and recreation 136,801
Capital assets held by the government’s internal service funds are
charged to the various functions based on their usage of the assets 471,971
Total depreciation expense – governmental activities $1,859,640
Business-type activities:
Water $ 228,634
Sewer 145,096
Storm Sewer 198,860
Refuse 45,972
Pavilion/Ice arena 67,938
Housing and Redevelopment Authority 148,663
Total depreciation expense – business-type activities $ 835,163
58
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Construction commitments
The City has active construction projects as of December 31, 2010. The projects include street improvements. The
City’s commitment with contractors related to these projects is $122,088.
6. INTERFUND RECEIVABLES AND PAYABLES
The following funds had amounts receivable from other funds, and the respective funds had equal amounts payable to
other funds at December 31, 2010:
Due from other funds
Non-major
GeneralGovernmentalTotal
Due to other funds:
Non-major governmental$ 1,038,703996,808$$2,035,511
Water278,870 278,870-
Pavilion167,509 167,509-
Non-major proprietary27,828 27,828-
Total due to other funds$1,471,015$1,038,703$2,509,718
Advances from other funds
Internal
ServiceTotal
Advanced to other funds:
Non-major proprietary$68,106$68,106
Total advances to other funds$68,106$68,106
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, 2010:
Transfers in
Permanent
ImprovementNon-major
RevolvingGovernmentalTotal
Transfers out:
General$ 11,599-$ 11,599$
Housing Improvement Bonds of 1999A Refunding Bonds of 2009B- 903,498 903,498
Housing Improvement Bonds of 1999B Refunding Bonds of 2009B 1,578,495- 1,578,495
Permanent Improvement Revolving 130,119- 130,119
Water 45,000- 45,000
Sewer 50,000- 50,000
Storm Sewer 25,000- 25,000
Non-major governmental 2,653,4332,385,924 5,039,357
Non-major business-type 25,000- 25,000
Total transfers out$ 2,653,433$5,154,635$ 7,808,068
59
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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)Transfers from Debt Service funds to Debt Service funds for bond refunding and to the Permanent
Improvement Revolving fund for project bond proceeds.
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 ( 94,220)
Total $776,207
The future minimum lease obligations and the net present value of these minimum lease payments as of December
31, 2010 are as follows:
Governmental
Activities
Year Ending December 31,
2011$54,217
201254,217
201354,217
201454,217
201554,217
2016-2018162,651
Total minimum lease payments433,736
Less: amount representing interest(78,180)
Present value of minimum lease payments355,556$
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.
60
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Refunding
On November 17, 2010 the City issued $1,585,000 General Obligation Refunding Bonds, Series 2010B for a
crossover refunding of $1,490,000 General Obligation Tax Increment Bonds, Series 2002A. Future debt service
payments will be reduced by $109,172 with a present value savings of $92,997. The refunded bonds will be called
and paid on February 1, 2013.
General obligation bonds currently outstanding are as follows:
InterestRates Original Amount Current Amount
Purpose
Governmental activities 2.00 – 6.60% $13,185,000 $10,430,000
Governmental activities – refunding 0.50 – 5.15% 9,140,000 6,525,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year EndingGovernmental Activities
PrincipalInterest
December 31
2011$ 1,650,000$626,611
2012 1,060,000586,714
2013 2,595,000513,375
2014 1,170,000438,832
2015 1,205,000396,685
2016-20206,040,000 1,270,046
2021-20253,235,000 190,623
$ 4,022,88616,955,000$
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. On November 17,
2010 the City issued $2,710,000 General Obligation Permanent Improvement Bonds, Series 2010A for the purpose of
street improvements and $220,000 General Obligation Refunding Bonds, Series 2010B to refund $215,000 General
Obligation Improvement Bonds, Series 2002B. Future debt service payments will be reduced by $4,985 with a
present value savings of $4,844. The refunded bonds were called and paid on February 1, 2011.
General obligation bonds currently outstanding are as follows:
PurposeInterestRates Original Amount Current Amount
Street Improvements 0.50 – 4.25% $ 5,625,000 $4,665,000
Street Improvements – refunding 0.50 – 0.700% 220,000 220,000
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending
Governmental Activities
December 31PrincipalInterest
2011$ 500,000$113,622
2012 440,000116,840
2013 455,000107,334
2014 365,00097,227
2015 380,00086,628
2016-20201,580,000 265,833
2021-2025960,000 245,635
2026 3,280205,000
$ 1,036,3994,885,000$
61
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Revenue bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service. On November 17, 2010 the City issued $875,000 General Obligation Refunding Bonds, Series
2010B to refund $855,000 Storm Sewer Revenue Bonds, Series 2003A. Future debt service payments will be
reduced by $71,336 with a present value savings of $62,061. The refunded bonds were called and paid on February
1, 2011.
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 $ 910,000
Storm sewer – refunding 2.0 – 4.0% 2,215,000 605,000
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
Storm sewer – refunding 0.5 – 2.9% 875,000 875,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31PrincipalInterest
2011$ 1,275,000$120,025
2012 450,000100,598
2013 470,00092,285
2014 475,00082,572
2015 485,00070,460
2016-2020965,000 253,788
2021-2025960,000 84,082
$5,080,000 803,810$
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:
InterestRates Original Amount Current Amount
Purpose
Police Station improvements 2.0 – 4.35% $ 3,050,000 $ 2,315,000
62
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Annual debt service requirements to maturity are as follows:
Year Ending
December 31PrincipalInterest
2011$ 130,000$86,391
2012 135,00082,281
2013 140,00077,811
2014 145,00073,054
2015 145,00068,070
2016-2020830,000 251,826
2021-2025790,000 69,550
$ 708,9832,315,000$
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2010, the debt limit for the City is $47,120,694. Of the total debt, $10,144,055 of general obligation
and revenue bonds is applicable to the limit. The legal debt margin is $36,976,639.
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. As of December 31, 2010, $8,230,000
remained outstanding.
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2010, was as follows:
Beginning EndingDue Within
BalanceAdditionsDeductionsBalanceOne Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds$10,290,000 $1,585,000$3,545,000 $8,330,000 $1,030,000
General obligation bonds 9,245,000 - 620,000 8,625,000 620,000
Total general obligation bonds 19,535,0001,585,000 4,165,000 16,955,000 1,650,000
Special assessment bonds 2,330,0002,930,000 375,000 4,885,000 500,000
Public facility lease bonds 2,440,000 - 125,000 2,315,000 130,000
Less deferred amounts
For issuance discounts (98,153) (27,100) 9,450 (115,803) -
For issuance premiums 5,971 - (664) 5,307 -
On refunding (26,477) (18,050) 806 (43,721) -
Total bonds payable 24,186,3414,469,850 4,674,592 24,000,783 2,280,000
Compensated absences 846,487 693,626 673,660 866,453 673,660
Net OPEB liability 112,983 168,964 173,778 108,169 -
Capital lease payable 391,115 - 35,559 355,556 37,315
Governmental activity
long-term liabilities$25,536,926 $5,332,440$5,557,589 $25,330,961 $2,990,975
Business-type activities:
Bonds payable:
Revenue bonds$6,200,000 $875,000 $1,995,000 $5,080,000 $1,275,000
Less deferred amounts
For issuance discounts - (8,750) 89 (8,661)
For issuance premiums 62,966 - (351) 62,615 -
Compensated absences 114,484 111,629 86,589 139,524 79,226
Net OPEB liability 18,864 30,757 29,936 19,685 -
Business-type activity
long-term liabilities$6,396,314 $1,008,636$2,111,263 $5,293,163 $1,354,226
63
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
GERF 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 GERF'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 GERF 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 GERF 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.
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. GERF Basic Plan members and Coordinated Plan members were required
to contribute 9.1% and 6.0%, respectively, of their annual covered salary in 2010. PEPFF members were required
to contribute 9.4% of their annual covered salary in 2010. The City of Hopkins is required to contribute the
following percentages of annual covered payroll: 11.78% for Basic Plan GERF members, 7% for Coordinated
Plan GERF members and 14.1% for PEPFF members. The City’s contributions to the General Employees
Retirement Fund for the years ending December 31, 2010, 2009 and 2008 were $328,513, $316,832, and
$298,627, respectively. The City’s contributions to the Public Employees Police & Fire Fund for the years ending
December 31, 2010, 2009 and 2008 were $299,165, $305,185, and $277,938, respectively. The City’s
contributions were equal to the contractually required contributions for each year as set by state statute.
64
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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:
2010 Contributions: City $ 189,825
State $ 68,132
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
Actuarial method for valuing assets Fair market value
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
12/31/2009$32,166 100%$0
12/31/2008$32,166 100%$0
12/31/2007$32,166 100%$0
65
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Schedule of Funding Progress (Required Supplemental Information)
ActuarialActuarial AccruedExcess (Under)
ActuarialValue ofLiabilitAALOf AssetsFunded
y()
ValuationAssetsEntry AgeOver AALRatio
Date(a)(b)(a-b)(a/b)
12/31/2009$1,816,577 $2,190,083 ($373,506)83%
12/31/2008$1,982,694 $2,485,423 ($502,729)80%
12/31/2007$3,217,931 $2,778,117 $439,814 116%
The estimated accrued liability of 2,190,083 at December 31, 2009 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
($373,506) as of December 31, 2009. 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, 2010.
1.Plan Description
The City, a single-employer postemployment benefit plan, 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 23 employees meet those eligibility requirements. As of December 31, 2010 there were
approximately 90 active participants and 23 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 2010, the City contributed $203,714
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.
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.
66
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
Annual Required Contribution$201,793
Interest on Net OPEB Obligation 5,933
Adjustment to Annual Required Contribution (8,005)
Annual OPEB Cost (Expense)199,721
Contributions Made(203,714)
Increase in Net OPEB Obligation (3,993)
Net OPEB Obligation- Beginning of Year131,847
et OPEB Obligation- End of Year$127,854
N
The City’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2010:
Percentage
FiscalAnnualof AnnualNet
YearOPEBOPEB CostOPEB
EndedCostConstributedObligation
12/31/2008236,804$65.0%82,786$
12/31/2009235,55779.2%131,847
12/31/2010199,721102.0%127,854
4. Funded Status and Funding Progress
As of January 1, 2010, the most recent actuarial valuation date, the City’s unfunded actuarial accrued liability
(UAAL) was $2,145,167. The annual payroll for active employees covered by the plan in the actuarial valuation
was $6,244,081 for a ratio of UAAL to covered payroll of 34.36%.
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, 2010 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
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 over a period not to exceed 30 years.
67
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2010
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 $66,988 at December 31, 2010 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.
68
REQUIRED SUPPLEMENTARY
INFORMATION
69
City of Hopkins, Minnesota
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress
December 31, 2010
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%
01/01/2010- 2,145,617 2,145,617 - 6,244,081 34.36%
70
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.
Economic Development Fund
– This fund accounts for the development opportunities of the
city. Sources of funds are derived from the administration of loans and an annual tax levy.
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.
71
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.
72
City of Hopkins
1 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Special Revenue Funds
StateReal EstateHennepin
ChemicalEconomicPurchasesCounty
AssessmentDevelopment& SalesCDBGPara-Transit
ASSETS
Cash and investments$ -$908,044$106,917$ -$ -
Taxes receivable -3,610 - - -
Special Assessments receivable - - - - -
Accounts receivable -1,602 - -
Rehabilitation loans receivable -26,211 -40,777 -
Due from other governments65,1681,250 - - -
Accrued interest receivable -1,923226 - -
Due from other funds -1,038,703 - - -
Prepaid expenses - - - - -
Long-term receivable - - - - -
Property held for resale -722,098 - - -
Total Assets$65,168$2,703,441$107,143$40,777$ -
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$1,772$4,058$ -$ -$ -
Salaries payable9545,061 - - -
Accrued interest payable - - - - -
Due to other funds117,906 - - - -
Due to other governments - - - - -
Deferred revenue -29,558 - - -
Total Liabilities120,63238,677 - - -
Fund balances:
Reserved for:
Prepaid expenses - - - - -
Rehab loans receivable -26,211 -40,777 -
Long term receivable - - - - -
Tax Increment Districts - - - - -
Advances to other funds - - - - -
Property held for resale -722,098 - - -
Debt service - - - - -
Unreserved, designated for:
Economic development - - - - -
Construction projects - - - - -
Unreserved, undesignated:(55,464)1,916,455107,143 - -
Total Fund Balances(55,464)2,664,764107,14340,777 -
Total Liabilities and Fund Balance$65,168$2,703,441$107,143$40,777$ -
73
City of Hopkins
2 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Special Revenue Funds
Depot
HousingSection 8Coffee
RehabParkingHousingCommunicationsHouse
ASSETS
$586,165$237,192$91,906$364,482$20,555
Cash and investments
Taxes receivable - - - - -
Special Assessments receivable - - - - -
Accounts receivable -2,405 -51,479947
Rehabilitation loans receivable - - - - -
Due from other governments -2,116 - - -
Accrued interest receivable1,25150219477143
Due from other funds - - - - -
- - -120120
Prepaid expenses
Long-term receivable - - - - -
Property held for resale - - - -
Total Assets$587,416$242,215$92,100$416,852$21,665
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$676$2,773$94$14,041$2,233
Salaries payable2,4081,585 -1,0581,758
Accrued interest payable - - - - -
Due to other funds - - - - -
Due to other governments - - - -11
Deferred revenue -42,380 - - -
Total Liabilities3,08446,7389415,0994,002
Fund balances:
Reserved for:
Prepaid expenses - - -120120
Rehab loans receivable - - - - -
Long term receivable - - - - -
Tax Increment Districts - - - - -
Advances to other funds - - - - -
Property held for resale - - - - -
Debt service - - - - -
Unreserved, designated for:
Economic development85,000 - - - -
Construction projects - - - - -
Unreserved, undesignated:499,332195,47792,006401,63317,543
Total Fund Balances584,332195,47792,006401,75317,663
Total Liabilities and Fund Balance$587,416$242,215$92,100$416,852$21,665
74
City of Hopkins
3 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Special Revenue Funds
TaxTax
IncrementTaxTaxIncrement
DistrictIncrementIncrementDistrict
ArtEntertainmentDistrictDistrictOaks of
CenterDistrictR.L. JohnsonSonomaMainstreet
ASSETS
$100$207,813$206,177$ -$368,593
Cash and investments
Taxes receivable - - - -509
Special Assessments receivable - - - - -
Accounts receivable32,030 - -8,741 -
Rehabilitation loans receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable -440436 -780
Due from other funds - - - - -
120 - - - -
Prepaid expenses
Long-term receivable -75,000 - - -
Property held for resale - - - - -
Total Assets$32,250$283,253$206,613$8,741$369,882
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$24,610$225$144$11$358
Salaries payable11,540 - - - -
Accrued interest payable - - -3 -
Due to other funds966,967441,704 -298,515 -
Due to other governments337 - - - -
Deferred revenue120 - - - -
Total Liabilities1,003,574441,929144298,529358
Fund balances:
Reserved for:
Prepaid expenses120 - - - -
Rehab loans receivable - - - - -
Long term receivable -75,000 - - -
Tax Increment Districts - -206,469 -369,524
Advances to other funds - - - - -
Property held for resale - - - - -
Debt service - - - - -
Unreserved, designated for:
Economic development - - - - -
Construction projects - - - - -
Unreserved, undesignated:(971,444)(233,676) -(289,788) -
Total Fund Balances(971,324)(158,676)206,469(289,788)369,524
Total Liabilities and Fund Balance$32,250$283,253$206,613$8,741$369,882
75
City of Hopkins
4 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Debt Service
Special Revenue FundsFunds
Tax
TaxTaxIncrement
IncrementIncrementDistrictHousing
DistrictDistrictMarketplace`Bonds of
Super Valu5th Ave Flats& MainTotal1995
ASSETS
$439,016$ -$ -$3,536,960$135,314
Cash and investments
Taxes receivable - - -4,119 -
Special Assessments receivable - - - -102,020
Accounts receivable1,207132,87126,108257,390 -
Rehabilitation loans receivable - - -66,988 -
Due from other governments - - -68,534 -
Accrued interest receivable929 - -7,495286
Due from other funds - - -1,038,703 -
- - -360 -
Prepaid expenses
Long-term receivable - - -75,000 -
Property held for resale - - -722,098 -
Total Assets$441,152$132,871$26,108$5,777,647$237,620
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$393$158,322$25$209,735$79
Salaries payable - - -24,364 -
Accrued interest payable -38660449 -
Due to other funds -182,24728,1722,035,511 -
Due to other governments - - -348 -
Deferred revenue - - -72,058101,418
Total Liabilities393340,95528,2572,342,465101,497
Fund balances:
Reserved for:
Prepaid expenses - - -360 -
Rehab loans receivable - - -66,988 -
Long term receivable - - -75,000 -
Tax Increment Districts440,759 - -1,016,752 -
Advances to other funds - - - - -
Property held for resale - - -722,098 -
Debt service - - - -136,123
Unreserved, designated for: -
Economic development - - -85,000 -
Construction projects - - - - -
Unreserved, undesignated: -(208,084)(2,149)1,468,984 -
Total Fund Balances440,759(208,084)(2,149)3,435,182136,123
Total Liabilities and Fund Balance$441,152$132,871$26,108$5,777,647$237,620
76
City of Hopkins
5 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Debt Service Funds
Park and
Recreational
Taxable Taxable Refunding D
ImprovementHousingHousingImprovementBonds of
RevolvingImprovementImprovementRevolving1993, Refunding
Bonds ofBonds ofBonds ofBonds ofBonds of
19991999A1999B20022001
ASSETS
$ -$ -$ -$114,324$339,173
Cash and investments
Taxes receivable - - -5,1701,994
Special Assessments receivable - - - - -
Accounts receivable - - - - -
Rehabilitation loans receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable - - -241718
Due from other funds - - - - -
- - - - -
Prepaid expenses
Long-term receivable - - - - -
Property held for resale - - - - -
Total Assets$ -$ -$ -$119,735$341,885
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$ -$ -$ -$57$67
Salaries payable - - - - -
Accrued interest payable - - - - -
Due to other funds - - - - -
Due to other governments - - - - -
Deferred revenue - - -4,7941,789
Total Liabilities - - -4,8511,856
Fund balances:
Reserved for:
Prepaid expenses - - - - -
Rehab loans receivable - - - - -
Long term receivable - - - - -
Tax Increment Districts - - - - -
Advances to other funds - - - - -
Property held for resale - - - - -
Debt service - - -114,884340,029
Unreserved, designated for:
Economic development - - - - -
Construction projects - - - - -
Unreserved, undesignated: - - - - -
Total Fund Balances - - -114,884340,029
Total Liabilities and Fund Balance$ -$ -$ -$119,735$341,885
77
City of Hopkins
6 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Debt Service Funds
Tax TaxTaxable Tax
IncrementIncrementIncrement
TaxHRA LeaseBonds of 1996CBonds of 1997Bonds of 1996D
IncrementRevemueRefundingRefunding Refunding
Bonds ofBonds ofBonds of Bonds of Bonds of
200220032005A2005A2005B
ASSETS
$1,726,315$384,167$53,728$416,757$134,350
Cash and investments
Taxes receivable -5,842 - - -
Special Assessments receivable - - - - -
Accounts receivable - - - - -
Rehabilitation loans receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable370327114882284
Due from other funds - - - - -
- - - - -
Prepaid expenses
Long-term receivable - - - - -
Property held for resale - - - - -
Total Assets$1,726,685$390,336$53,842$417,639$134,634
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$79$63$41$356$71
Salaries payable - - - - -
Accrued interest payable - - - - -
Due to other funds - - - - -
Due to other governments - - - - -
Deferred revenue -5,147 - - -
Total Liabilities795,2104135671
Fund balances:
Reserved for:
Prepaid expenses - - - - -
Rehab loans receivable - - - - -
Long term receivable - - - - -
Tax Increment Districts - - - - -
Advances to other funds - - - - -
Property held for resale - - - - -
Debt service1,726,606385,12653,801417,283134,563
Unreserved, designated for:
Economic development - - - - -
Construction projects - - - - -
Unreserved, undesignated: - - - - -
Total Fund Balances1,726,606385,12653,801417,283134,563
Total Liabilities and Fund Balance$1,726,685$390,336$53,842$417,639$134,634
78
City of Hopkins
7 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Debt Service Funds
Tax
ImprovementIncrement
ImprovementImprovementBonds of 2002Bonds of 2002
Capital
RevolvingRevolvingRefunding Refunding
Improvement
Bonds ofBonds ofBonds ofBonds of
Bonds of
2007A2007B2010A2010B2010B
ASSETS
$297,634$202,723$ -$314$474
Cash and investments
Taxes receivable19,8084,548 - - -
Special Assessments receivable - - - - -
Accounts receivable - -700 - -
Rehabilitation loans receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable630429 -11
Due from other funds - - - - -
- - - - -
Prepaid expenses
Long-term receivable - - - - -
Property held for resale - - - - -
Total Assets$318,072$207,700$700$315$475
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$125$67$ -$ -$ -
Salaries payable - - - - -
Accrued interest payable - - - - -
Due to other funds - - - - -
Due to other governments - - - - -
Deferred revenue17,3223,905 - - -
Total Liabilities17,4473,972 - - -
Fund balances:
Reserved for:
Prepaid expenses - - - - -
Rehab loans receivable - - - - -
Long term receivable - - - - -
Tax Increment Districts - - - - -
Advances to other funds - - - - -
Property held for resale - - - - -
Debt service300,625203,728700315475
Unreserved, designated for:
Economic development - - - - -
Construction projects - - - - -
Unreserved, undesignated: - - - - -
Total Fund Balances300,625203,728700315475
Total Liabilities and Fund Balance$318,072$207,700$700$315$475
79
City of Hopkins
8 of 8
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2010
Debt Service
FundsCapital Project Funds
Total
CapitalNon-major
ParkImprovementGovernmental
TotalImprovementsFundTotalFunds
ASSETS
$3,805,273$219,421$182,908$402,329$7,744,562
Cash and investments
Taxes receivable37,362 -21221241,693
Special Assessments receivable102,020 - - -102,020
Accounts receivable700 - - -258,090
Rehabilitation loans receivable - - - -66,988
Due from other governments - -43,16143,161111,695
Accrued interest receivable4,28346338785012,628
Due from other funds - - - -1,038,703
- - - -360
Prepaid expenses
Long-term receivable -15,000 -15,00090,000
Property held for resale - - - -722,098
Total Assets$3,949,638$234,884$226,668$461,552$10,188,837
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$1,005$2,256$4,620$6,876$217,616
Salaries payable - - - -24,364
Accrued interest payable - - - -449
Due to other funds - - - -2,035,511
Due to other governments - - - -348
Deferred revenue134,375 -212212206,645
Total Liabilities135,3802,2564,8327,0882,484,933
Fund balances:
Reserved for:
Prepaid expenses - - - -360
Rehab loans receivable - - - -66,988
Long term receivable -15,000 -15,00090,000
Tax Increment Districts - - - -1,016,752
Advances to other funds - - - - -
Property held for resale - - - -722,098
Debt service3,814,258 - - -3,814,258
Unreserved, designated for:
Economic development - - - -85,000
Construction projects -217,628221,836439,464439,464
Unreserved, undesignated: - - - -1,468,984
Total Fund Balances3,814,258232,628221,836454,4647,703,904
Total Liabilities and Fund Balance$3,949,638$234,884$226,668$461,552$10,188,837
80
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, 2010
Special Revenue Funds
StateReal EstateHennepin
ChemicalEconomic PurchasesCounty
AssessmentDevelopment& SalesCDBGPara-Transit
Revenues
Property tax$ -$72,244$ -$ -$ -
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue177,3566,792 -5,45016,920
Fees, licenses and permits - - - - -
Charges for services -1273,700 - -
Fines - - - - -
Investment earnings -36,587925 - -
Other12375,987 - - -
Total Revenues177,479191,7374,6255,45016,920
Expenditures
Current:
General government - - - - -
Public safety110,245 - - - -
Health and welfare - - - -17,519
Highways and streets - - - - -
Urban redevelopment and housing -206,725 -15,058 -
Recreation - - - - -
Capital outlay20,751 - - - -
Debt Service:
Principal retirement - - - - -
Interest and fiscal fees - - -60 -
Bond issuance costs - - - -
Total Expenditures130,996206,725 -15,11817,519
Excess (deficiency) of revenues over
expenditures46,483(14,988)4,625(9,668)(599)
Other Financing Sources (Uses):
Transfers in - - -3,49211,599
Transfers out -(61,000) - - -
Refunding bonds issued - - - - -
Improvement bonds issued - - - - -
Discount on refunding debt - - - - -
Total Other Financing Sources (Uses) -(61,000) -3,49211,599
Net change in fund balances46,483(75,988)4,625(6,176)11,000
Fund Balance (Deficit) - January 1
(101,947)2,740,752102,51846,953(11,000)
Fund Balance (Deficit) - December 31$(55,464)$2,664,764$107,143$40,777$ -
81
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, 2010
Special Revenue Funds
Depot
HousingSection 8Coffee
RehabParkingHousingCommunicationsHouse
Revenues
Property tax$ -$ -$ -$ -$ -
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue - - - -4,500
Fees, licenses and permits - - -200,739 -
Charges for services -53,199 - -60,501
Fines -19,775 - - -
Investment earnings4,4521,7216812,94644
Other - - - -23,655
Total Revenues4,45274,695681203,68588,700
Expenditures
Current:
General government - - -88,711 -
Public safety -59,262 - - -
Health and welfare - - - - -
Highways and streets -21,750 - - -
Urban redevelopment and housing98,339 -94 - -
Recreation - - - -107,655
Capital outlay -14,450 -25,395 -
Debt Service:
Principal retirement - - - - -
Interest and fiscal fees - - - - -
Bond issuance costs - - - - -
Total Expenditures98,33995,46294114,106107,655
Excess (deficiency) of revenues over
expenditures(93,887)(20,767)58789,579(18,955)
Other Financing Sources (Uses):
Transfers in - - - - -
Transfers out(3,492) - -(86,920) -
Refunding bonds issued - - - - -
Improvement bonds issued - - - - -
Discount on refunding debt - - - - -
Total Other Financing Sources (Uses)(3,492) - -(86,920) -
Net change in fund balances(97,379)(20,767)5872,659(18,955)
Fund Balance (Deficit) - January 1
681,711216,24491,419399,09436,618
Fund Balance (Deficit) - December 31$584,332$195,477$92,006$401,753$17,663
82
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, 2010
Special Revenue Funds
TaxTax
IncrementTaxTaxIncrement
DistrictIncrementIncrementDistrict
ArtEntertainmentDistrictDistrictOaks of
CenterDistrictR.L. JohnsonSonomaMainstreet
Revenues
Property tax$ -$ -$ -$ -$ -
Tax increment -58,259318,49710,320153,726
Special assessments - - - - -
Intergovernmental revenue - - - -9,738
Fees, licenses and permits - - - - -
Charges for services448,047 - -8,741 -
Fines - - - - -
Investment earnings -1,6421,500222,658
Other59,565 - - - -
Total Revenues507,61259,901319,99719,083166,122
Expenditures
Current:
General government - - - - -
Public safety - - - - -
Health and welfare - - - - -
Highways and streets - - - - -
Urban redevelopment and housing -2,84013,1691,9106,268
Recreation728,505 - - - -
Capital outlay -75,000 - - -
Debt Service:
Principal retirement - - - - -
Interest and fiscal fees -23,266 - - -
Bond issuance costs - - - - -
Total Expenditures728,505101,10613,1691,9106,268
Excess (deficiency) of revenues over
expenditures(220,893)(41,205)306,82817,173159,854
Other Financing Sources (Uses):
Transfers in147,920 - - - -
Transfers out - -(146,000) -(134,000)
Refunding bonds issued - - - - -
Improvement bonds issued - - - - -
Discount on refunding debt - - - - -
Total Other Financing Sources (Uses)147,920 -(146,000) -(134,000)
Net change in fund balances(72,973)(41,205)160,82817,17325,854
Fund Balance (Deficit) - January 1
(898,351)(117,471)45,641(306,961)343,670
Fund Balance (Deficit) - December 31$(971,324)$(158,676)$206,469$(289,788)$369,524
83
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, 2010
Debt Service
Special Revenue FundsFunds
TaxTaxTax
IncrementIncrementIncrementHousing
District5th AvenueMarketplaceBonds of
Super ValuFlats& MainTotal1995
Revenues
Property tax$ -$ -$ -$72,244$ -
Tax increment1,587,59819,117 -2,147,517 -
Special assessments - - - -99,259
Intergovernmental revenue - - -220,756 -
Fees, licenses and permits - - -200,739 -
Charges for services - - -574,315 -
Fines - - -19,775 -
Investment earnings2,523 - -55,701469
Other1,63010,92926,108197,997 -
Total Revenues1,591,75130,04626,1083,489,04499,728
Expenditures
Current:
General government - - -88,71179
Public safety - - -169,507 -
Health and welfare - - -17,519 -
Highways and streets - - -21,750 -
Urban redevelopment and housing1,279,489172,55010,1681,806,610 -
Recreation - - -836,160 -
Capital outlay - - -135,596 -
Debt Service:
Principal retirement - - - -85,000
Interest and fiscal fees -1,62622825,18011,400
Bond issuance costs - - - - -
Total Expenditures1,279,489174,17610,3963,101,03396,479
Excess (deficiency) of revenues over
expenditures312,262(144,130)15,712388,0113,249
Other Financing Sources (Uses):
Transfers in - - -163,011 -
Transfers out(188,000) - -(619,412) -
Refunding bonds issued - - - - -
Improvement bonds issued - - - - -
Discount on refunding debt - - - - -
Total Other Financing Sources (Uses)(188,000) - -(456,401) -
Net change in fund balances124,262(144,130)15,712(68,390)3,249
Fund Balance (Deficit) - January 1
316,497(63,954)(17,861)3,503,572132,874
Fund Balance (Deficit) - December 31$440,759$(208,084)$(2,149)$3,435,182$136,123
84
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, 2010
Debt Service Funds
Park and
Recreational
Taxable Taxable Refunding D
ImprovementHousingHousingImprovementBonds of
RevolvingImprovementImprovement1993 RefundingRevolving
Bonds ofBonds ofBonds ofBonds ofBonds of
19991999A1999B20022001
Revenues
Property tax$ -$ -$ -$104,393$57,034
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue - - - - -
Fees, licenses and permits - - - - -
Charges for services - - - - -
Fines - - - - -
Investment earnings - - -148723
Other - - - - -
Total Revenues - - -104,54157,757
Expenditures
Current:
General government -2824085767
Public safety - - - - -
Health and welfare - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - - - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement105,0001,075,0001,905,000135,000105,000
Interest and fiscal fees3,01241,87077,1726,70214,425
Bond issuance costs - - - - -
Total Expenditures108,0121,117,1521,982,580141,759119,492
Excess (deficiency) of revenues over
expenditures(108,012)(1,117,152)(1,982,580)(37,218)(61,735)
Other Financing Sources (Uses):
Transfers in -903,4981,578,495 -273,219
Transfers out(631) - - - -
Refunding bonds issued - - - - -
Improvement bonds issued - - - - -
Discount on refunding debt - - - - -
Total Other Financing Sources (Uses)(631)903,4981,578,495 -273,219
Net change in fund balances(108,643)(213,654)(404,085)(37,218)211,484
Fund Balance (Deficit) - January 1
108,643213,654404,085152,102128,545
Fund Balance (Deficit) - December 31$ -$ -$ -$114,884$340,029
85
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, 2010
Debt Service Funds
Tax TaxTaxable Tax
IncrementIncrementIncrement
TaxHRA LeaseBonds of 1996CBonds of 1997Bonds of 1996D
IncrementRevemueRefundingRefunding Refunding
Bonds ofBonds ofBonds of Bonds of Bonds of
200220032005A2005A2005B
Revenues
Property tax$ -$193,317$ -$ -$ -
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue - - - - -
Fees, licenses and permits - - - - -
Charges for services - - - - -
Fines - - - - -
Investment earnings4343963012,245417
Other - - - - -
Total Revenues434193,7133012,245417
Expenditures
Current:
General government79634135671
Public safety - - - - -
Health and welfare - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - - - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement100,000125,0005,000190,00090,000
Interest and fiscal fees84,08491,66918,37617,4716,598
Bond issuance costs - - - - -
Total Expenditures184,163216,73223,417207,82796,669
Excess (deficiency) of revenues over
expenditures(183,729)(23,019)(23,116)(205,582)(96,252)
Other Financing Sources (Uses):
Transfers in1,739,512 -29,000146,000105,000
Transfers out - - - - -
Refunding bonds issued - - - - -
Improvement bonds issued - - - - -
Discount on refunding debt - - - - -
Total Other Financing Sources (Uses)1,739,512 -29,000146,000105,000
Net change in fund balances1,555,783(23,019)5,884(59,582)8,748
Fund Balance (Deficit) - January 1
170,823408,14547,917476,865125,815
Fund Balance (Deficit) - December 31$1,726,606$385,126$53,801$417,283$134,563
86
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, 2010
Debt Service Funds
Tax
ImprovementIncrement
ImprovementImprovementBonds of 2002Bonds of 2002
RevolvingRevolvingRefunding Refunding
Capital
Bonds ofBonds ofBonds ofBonds of
Improvement
Bonds of 2007A2007B2010A2010B2010B
Revenues
Property tax$691,104$178,817$ -$ -$ -
Tax increment - - - - -
Special assessments - - - - -
Intergovernmental revenue - - - - -
Fees, licenses and permits - - - - -
Charges for services - - - - -
Fines - - - - -
Investment earnings -336171151
Other - - - - -
Total Revenues691,104179,153171151
Expenditures
Current:
General government12567 - - -
Public safety - - - - -
Health and welfare - - - - -
Highways and streets - - - - -
Urban redevelopment and housing - - - - -
Recreation - - - - -
Capital outlay - - - - -
Debt Service:
Principal retirement485,000165,000 - - -
Interest and fiscal fees370,97373,208 - - -
Bond issuance costs - -29,5692,50017,164
Total Expenditures856,098238,27529,5692,50017,164
Excess (deficiency) of revenues over
expenditures(164,994)(59,122)(29,398)(2,485)(17,163)
Other Financing Sources (Uses):
Transfers in145,00071,900 - - -
Transfers out - -(2,652,802)(215,000)(1,551,512)
Refunding bonds issued - - -220,0001,585,000
Improvement bonds issued - -2,710,000 - -
Discount on refunding debt - -(27,100)(2,200)(15,850)
Total Other Financing Sources (Uses)145,00071,90030,0982,80017,638
Net change in fund balances(19,994)12,778700315475
Fund Balance (Deficit) - January 1
320,619190,950 - - -
Fund Balance (Deficit) - December 31$300,625$203,728$700$315$475
87
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, 2010
Debt Service
FundsCapital Projects Funds
Total
CapitalNon-major
ParkImprovementGovernmental
TotalImprovementsFundTotalFunds
Revenues
Property tax$1,224,665$ -$ -$ -$1,296,909
Tax increment - - - -2,147,517
Special assessments99,259 - - -99,259
Intergovernmental revenue - -75,00075,000295,756
Fees, licenses and permits - - - -200,739
Charges for services - - - -574,315
Fines - - - -19,775
Investment earnings5,6561,5191,4542,97364,330
Other -1,0005,5446,544204,541
Total Revenues1,329,5802,51981,99884,5174,903,141
Expenditures
Current:
General government1,695 - - -90,406
Public safety - - - -169,507
Health and welfare - - - -17,519
Highways and streets - - - -21,750
Urban redevelopment and housing - - - -1,806,610
Recreation - - - -836,160
Capital outlay -16,41496,044112,458248,054
Debt Service:
Principal retirement4,570,000 - - -4,570,000
Interest and fiscal fees816,960 - - -842,140
Bond issuance costs49,233 - - -49,233
Total Expenditures5,437,88816,41496,044112,4588,651,379
Excess (deficiency) of revenues over
expenditures(4,108,308)(13,895)(14,046)(27,941)(3,748,238)
Other Financing Sources (Uses):
Transfers in4,991,624 - - -5,154,635
Transfers out(4,419,945) - - -(5,039,357)
Refunding bonds issued1,805,000 - - -1,805,000
Improvement bonds issued2,710,000 - - -2,710,000
Discount on refunding debt(45,150) - - -(45,150)
Total Other Financing Sources (Uses)5,041,529 - - -4,585,128
Net change in fund balances933,221(13,895)(14,046)(27,941)836,890
Fund Balance (Deficit) - January 1
2,881,037246,523235,882482,4056,867,014
Fund Balance (Deficit) - December 31$3,814,258$232,628$221,836$454,464$7,703,904
88
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Intergovernmental revenue:
45,000177,356
State grant$$$132,356
-123
Other123
45,000177,479
132,479
Expenditures:
37,20048,049
Salaries and employee benefits(10,849)
12,79262,196
Materials, supplies and services(49,404)
-20,751
Capital outlay(20,751)
49,992130,996
Total Expenditures(81,004)
(4,992)46,48351,475
Net change in fund balance
(101,947)(101,947)
Fund Balance - January 1-
Fund Balance - December 31$(106,939)$(55,464)$51,475
89
City of Hopkins
Economic Development Special Revenue Fund
Statement of Revenues, Expenditures , and
Changes in Fund Balance - Budget and Actual
Year Ended December 31, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
General property taxes$75,000$72,244$(2,756)
Intergovernmental revenue:
County grant -6,7926,792
Charges for services -127127
Investment earnings14,00036,58722,587
Other12,00075,98763,987
Total Revenues101,000191,73790,737
Expenditures:
Salaries and employee benefits167,889161,7126,177
Materials, supplies and services69,12485,013(15,889)
Total237,013246,725(9,712)
Less expenditures charged to other activities(40,000)(40,000) -
Net197,013206,725(9,712)
Other Financing Sources (Uses):
Transfer to Art Center Fund(61,000)(61,000) -
Net change in fund balance(157,013)(75,988)81,025
Fund Balance - January 12,740,7522,740,752 -
Fund Balance - December 31$2,583,739$2,664,764$81,025
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Charges for services$3,700$3,700$ -
Investment earnings2,100925(1,175)
Total Revenues5,8004,625(1,175)
Expenditures:
Materials, supplies and services - - -
Net change in fund balance5,8004,625(1,175)
Fund Balance - January 1102,518102,518 -
Fund Balance - December 31$108,318$107,143$(1,175)
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Intergovernmental:
State grant (Para-Transit)$16,920$16,920$ -
Charges for services1,300 -(1,300)
Total Revenues18,22016,920(1,300)
Expenditures:
Salaries and employee benefits5,6329244,708
Materials, supplies and services8,75016,595(7,845)
Total Expenditures14,38217,519(3,137)
Other Financing Sources:
Transfer from the General Fund4,42011,5997,179
Net change in fund balance8,25811,0002,742
Fund Balance - January 1(11,000)(11,000) -
Fund Balance - December 31$(2,742)$ -$2,742
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Investment earnings$20,000$4,452$(15,548)
Total Revenues20,0004,452(15,548)
Expenditures:
Salaries and employee benefits74,40179,710(5,309)
Materials, supplies and services24,45718,6295,828
Total Expenditures98,85898,339519
Other Financing Uses:
Transfer to CDBG Fund -(3,492)(3,492)
Net change in fund balance(78,858)(97,379)(19,559)
Fund Balance - January 1681,711681,711 -
Fund Balance - December 31$602,853$584,332$(19,559)
93
City of Hopkins
Parking Special Revenue Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Year Ended December 31, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Court fines$20,000$19,775$(225)
Charges for services58,00053,199(4,801)
Investment earnings7,5001,721(5,779)
Total Revenues85,50074,695(10,805)
Expenditures:
Salaries and employee benefits46,96942,3354,634
Materials, supplies and services46,79038,6778,113
Capital outlay13,00014,450(1,450)
Total Expenditures106,75995,46211,297
Net change in fund balance(21,259)(20,767)492
Fund Balance - January 1216,244216,244 -
Fund Balance - December 31$194,985$195,477$492
94
City of Hopkins
Communications Special Revenue Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Year Ended December 31, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Franchise fees$200,000$200,739$739
Investment earnings5,0002,946(2,054)
Total Revenues205,000203,685(1,315)
Expenditures:
Salaries and employee benefits32,81229,5713,241
Materials, supplies and services60,70059,1401,560
Capital outlay20,00025,395(5,395)
Total Expenditures113,512114,106(594)
Excess of revenues over expenditures91,48889,579(1,909)
Other Financing Uses:
Transfer to Art Center Fund(86,920)(86,920) -
Net change in fund balance4,5682,659(1,909)
Fund Balance - January 1399,094399,094 -
Fund Balance - December 31$403,662$401,753$(1,909)
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Intergovernmental:
State grant $4,000$4,500$500
Charges for services61,00060,501(499)
Investment earnings1,00044(956)
Contributions44,00023,655(20,345)
Total Revenues110,00088,700(21,300)
Expenditures:
Salaries and employee benefits76,45873,6622,796
Materials, supplies and services47,03733,99313,044
Capital outlay8,000 -8,000
Total Expenditures131,495107,65523,840
Net change in fund balance(21,495)(18,955)2,540
Fund Balance - January 136,61836,618 -
Fund Balance - December 31$15,123$17,663$2,540
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Charges for services$638,106$448,047$(190,059)
Other23,99559,56535,570
Total Revenues662,101507,612(154,489)
Expenditures:
Salaries and employee benefits374,956356,82518,131
Materials, supplies and services401,420371,68029,740
Total Expenditures776,376728,50547,871
Other Financing Sources
Transfer from other funds147,920147,920 -
Net change in fund balance33,645(72,973)(106,618)
Fund Balance - January 1(898,351)(898,351) -
Fund Balance - December 31$(864,706)$(971,324)$(106,618)
97
City of Hopkins
Tax Increment 1.2 - Entertainment Center Special Revenue Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Year Ended December 31, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax increment$55,000$58,259$3,259
Investment earnings1,5001,642142
Total Revenues56,50059,9013,401
Expenditures:
Materials, supplies and services3,0002,840160
Capital outlay:
Public improvements75,00075,000 -
Debt Service:
Interest and fiscal fees -23,266(23,266)
Total Expenditures78,000101,106(23,106)
Net change in fund balance(21,500)(41,205)(19,705)
Fund Balance - January 1(117,471)(117,471) -
Fund Balance - December 31$(138,971)$(158,676)$(19,705)
98
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax increment$ -$318,497$318,497
Investment earnings1,0001,500500
Total Revenues1,000319,997318,997
Expenditures:
Materials, supplies and services13,84813,169679
Other Financing Uses
Transfer to debt service, 1997 - HRA(212,000)(146,000)66,000
Net change in fund balance(224,848)160,828385,676
Fund Balance - January 145,64145,641 -
Fund Balance - December 31$(179,207)$206,469$385,676
99
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax increment$10,400$10,320$(80)
Investment earnings35022(328)
Other8,6248,741117
19,37419,083(291)
Expenditures:
Materials, supplies and services1,9001,910(10)
Net change in fund balance17,47417,173(301)
Fund Balance (Deficit) - January 1(306,961)(306,961)-
Fund Balance (Deficit) - December 31$(289,487)$(289,788)$(301)
100
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes
Tax increment$160,000$153,726$(6,274)
Intergovernmenal
Market value aid credit10,5009,738(762)
Investment earnings4,0002,658(1,342)
Total Revenues174,500166,122(8,378)
Expenditures
Materials, supplies and services6,1966,268(72)
Other Financing Uses:
Transfer out for debt service(134,000)(134,000) -
Net change in fund balance34,30425,854(8,450)
Fund Balance - January 1343,670343,670 -
Fund Balance - December 31$377,974$369,524$(8,450)
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Taxes:
Tax Increments$600,000$1,587,598$987,598
Investment earnings5,0002,523(2,477)
Other -1,6301,630
Total Revenues605,0001,591,751986,751
Expenditures:
Materials, supplies and services35,52642,605(7,079)
Capital outlay:
Site Improvements211,6001,236,884(1,025,284)
Total Expenditures247,1261,279,489(1,032,363)
Other Financing Sources (Uses):
Transfer out for debt service(188,000)(188,000) -
Net change in fund balance169,874124,262(45,612)
Fund Balance - January 1316,497316,497 -
Fund Balance - December 31$486,371$440,759$(45,612)
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Tax increment$2,400$19,117$16,717
Other5,00010,9295,929
Total Revenues7,40030,04622,646
Expenditures:
Materials, supplies and services7,850172,550(164,700)
Debt service:
Interest -1,626(1,626)
Total Expenditures7,850174,176(166,326)
Net change in fund balance(450)(144,130)(143,680)
Fund Balance - January 1(63,954)(63,954) -
Fund Balance - December 31$(64,404)$(208,084)$(143,680)
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, 2010
Variance with
Original andfinal budget
finalpositive
budgetActual(negative)
Revenues:
Tax increment$1,200$ -$(1,200)
Other -26,10826,108
Total Revenues1,20026,10824,908
Expenditures:
Materials, supplies and services2,85010,168(7,318)
Debt service:
Interest -228(228)
Total Expenditures2,85010,396(7,546)
Net change in fund balance(1,650)15,71217,362
Fund Balance - January 1(17,861)(17,861) -
Fund Balance - December 31$(19,511)$(2,149)$17,362
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
– This fund accounts operations of the city owned refuse service.
Housing Authority Fund
– This fund accounts for the operations of the city owned
federally subsidized apartment building.
105
City of Hopkins
Combining Statement of Net Assets
Nonmajor Enterprise Funds
December 31, 2010
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
RefuseHousing
Proprietary Funds
UtilityAuthority
Total
ASSETS
Current assets
$481,095$664,816$1,145,911
Cash and investments
47,2551,69048,945
Accounts receivable
1,021 -1,021
Accrued interest receivable
-60,11560,115
Due from other governments
3,958 -3,958
Inventory
-17,72317,723
Prepaid expenses
533,329744,3441,277,673
Total current assets
Noncurrent assets
Capital Assets:
-119,392119,392
Land
-485,562485,562
Construction in progress
302,7273,350,8163,653,543
Buildings and structures
2,584 -2,584
Distribution system
604,03852,916656,954
Machinery and equipment
(500,217)(2,637,813)(3,138,030)
Less accumulated depreciation
409,1321,370,8731,780,005
Total noncurrent assets
942,4612,115,2173,057,678
Total Assets
LIABILITIES
Current Liabilities:
22,20724,66346,870
Accounts payable
5,232 -5,232
Salaries payable
-27,82827,828
Due to other funds
5,470 -5,470
Due to other governments
10,51814,25324,771
Compensated absences
43,42766,744110,171
Total Current Liabilities
Noncurrent Liabilities:
4,771 -4,771
Compensated absences
4,1445,1819,325
Net OPEB liability
8,9155,18114,096
52,34271,925124,267
Total Liabilities
NET ASSETS
409,1321,370,8731,780,005
Invested in capital assets
480,987672,4191,153,406
Unrestricted
$890,119$2,043,292$2,933,411
Total net assets
106
City of Hopkins
Combining Statement of Revenues, Expenses and Changes in Net Assets
Nonmajor Enterprise Funds
For the Year Ended December 31, 2010
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
RefuseHousingProprietary Funds
UtilityAuthorityTotal
Operating revenues:
Charges for services$840,214$234,703$1,074,917
Other12,00123,68535,686
Total Operating Revenues852,215258,3881,110,603
Operating expenses:
Cost of sales and service543,392308,963852,355
Administration149,03484,698233,732
Depreciation45,972148,663194,635
Total Operating Expenses738,398542,3241,280,722
Operating income (loss)113,817(283,936)(170,119)
Nonoperating revenues (expenses):
Investment earnings3,465 -3,465
Intergovernmental grants34,195182,401216,596
Total nonoperating revenues
(expenses)37,660182,401220,061
Income (loss) before contributions and
transfers151,477(101,535)49,942
Capital contributions
Building improvements -328,515328,515
Transfers out(25,000) -(25,000)
Change in net assets126,477226,980353,457
Total net assets - beginning763,6421,816,3122,579,954
Total net assets - ending$890,119$2,043,292$2,933,411
107
City of Hopkins
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended December 31, 2010
Nonmajor Business-type Activities-Enterprise Funds
Nonmajor
RefuseHousingProprietary Funds
UtilityAuthorityTotal
Cash Flows from Operating Activities
Receipts from customers and users$846,349$231,671$1,078,020
Internal activity-payments from other funds -7,3807,380
Payments to suppliers(355,035)(305,335)(660,370)
Payments to employees(196,707)(82,989)(279,696)
Payments for interfund services used(149,034) -(149,034)
Net cash used by operating activities145,573(149,273)(3,700)
Cash Flows from Noncapital Financing Activities
Intergovernmental grants34,195510,916545,111
Transfers (to) from other funds(25,000) -(25,000)
Net cash provided (used) by noncapital and related financing activities9,195510,916520,111
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets -(304,014)(304,014)
Cash Flows From Investing Activities
Interest received3,154 -3,154
Net increase (decrease) in cash and investments157,92257,629215,551
Cash and Investments - January 1323,173607,187930,360
Cash and Investments - December 31$481,095$664,816$1,145,911
Reconciliation of operating loss to net cash used by operating activities:
Operating income (loss)$113,817 $(283,936) $(170,119)
Adjustments to reconcile operating loss to net cash used by
operating activities:
Depreciation expense45,972 148,663 194,635
(Increase) decrease in:
Accounts receivable(5,866) (26,717) (32,583)
Inventory(1,927) - (1,927)
(619)
Prepaid expense- (619)
Increase (decrease) in:
5,956
Accounts, compensated absences and accrued interest payable(6,423) (467)
Due to other funds- 7,380
7,380
Net Cash Used by Operating Activities$145,573 $(149,273) $(3,700)
108
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, 2010
Internal
EquipmentInsuranceEmployeeService
ReplacementRiskBenefitsFund Total
ASSETS
Current assets:
Cash and investments$929,273$163,767$996,861$2,089,901
Accounts receivable501,424 -1,474
Advance to other funds68,106 - -68,106
Accrued interest receivable1,9673462,0674,380
Total current assets999,396165,537998,9282,163,861
Property and equipment
Machinery and equipment6,666,121 - -6,666,121
Less accumulated depreciation(3,798,545) - -(3,798,545)
Net property and equipment2,867,576 - -2,867,576
Total Assets3,866,972165,537998,9285,031,437
LIABILITIES
Current Liabilities:
Accounts payable6,20549,121 -55,326
Accrued interest payable3,254 - -3,254
Compensated absences payable - -673,660673,660
Capital lease - current37,315 - -37,315
Total Current Liabilities46,77449,121673,660769,555
Noncurrent Liabilities
Compensated absences payable - -192,793192,793
Capital lease payable318,241 - -318,241
Total Noncurrent Liabilities318,241 -192,793511,034
Total Liabilities365,01549,121866,4531,280,589
NET ASSETS
Invested in capital assets, net of related debt2,512,020 - -2,512,020
Unrestricted989,937116,416132,4751,238,828
Total Net Assets$3,501,957$116,416$132,475$3,750,848
110
CITY OF HOPKINS, MINNESOTA
Combining Statement of Revenues Expenses, and Changes in Net Assets
Internal Service Funds
Year Ended December 31, 2010
EquipmentInsuranceEmployee
ReplacementRiskBenefitsTotal
Operating revenues:
Charges for services$292,867$45,757$ -$338,624
Operating expenses (excluding depreciation):
Materials, supplies and services25,28870,207 -95,495
Operating income before depreciation267,579(24,450) -243,129
Depreciation expense471,971 - -471,971
Operating loss(204,392)(24,450) -(228,842)
Nonoperating revenues (expenses):
Investment earnings6,7219477,43315,101
Loss on sale of property and equipment(5,151) - -(5,151)
Interest expense(18,333) - -(18,333)
Total nonoperating revenues(16,763)9477,433(8,383)
Change in net assets(221,155)(23,503)7,433(237,225)
Fund Equity:
Net assets - January 13,723,112139,919125,0423,988,073
Net assets - December 31$3,501,957$116,416$132,475$3,750,848
111
City of Hopkins
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2010
EquipmenInsuranceEmployee
t
ReplacementRiskBenefits
Totals
Cash Flows from Operating Activities
Receipts from customers and users$ -$51,346$ -$51,346
Receipts from interfund services provided315,960 - -315,960
Payments to suppliers(19,029)(23,874) -(42,903)
Payments for interfund services used(10,798) - -(10,798)
Payments for interfund services used - -19,96619,966
Net cash provided (used) by operating activities286,13327,47219,966333,571
Cash Flows from Capital and Related Financing Activities:
Purchases of capital assets(496,491) - -(496,491)
Proceeds from sales of capital assets13,760 - -13,760
Interest and other payments(18,333) - -(18,333)
Capital lease payments(35,559) - -(35,559)
Net cash used by capital and related
financing activities(536,623) - -(536,623)
Cash Flows From Investing Activities 7,3268997,40015,625
Net increase (decrease) in cash and cash equivalents(243,164)28,37127,366(187,427)
Cash and Cash Equivalents - January 11,172,437135,396969,4952,277,328
Cash and Cash Equivalents - December 31$929,273$163,767$996,861$2,089,901
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)$(204,392)$(24,450)$ -$(228,842)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation expense471,971 - -471,971
(Increase) decrease in:
Accounts receivable(50)5,589 -5,539
Due from other funds23,143 - -23,143
Increase (decrease) in:
Accounts, compensated absences and accrued intereset
payable(4,539)46,33319,96661,760
Net Cash Provided (Used) by Operating Activities$286,133$27,472$19,966$333,571
Noncash Investing, capital and financing activities
Capital asset loss$(5,151)$ -$ -$(5,151)
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
2001200220032004
General Fund
Reserved$ 617,388$ 580,462$ 557,628$ 97,740
Unreserved 2,581,317 2,795,941 3,230,283 3,973,556
Total general fund$ 3,198,705$ 3,376,403$ 3,787,911$ 4,071,296
All other Governmental Funds
Reserved reported in:
Special Revenue Funds4,816,824$ 4,989,862$ 5,813,114$ 4,326,291$
Capital Projects Funds- 10,107,076 6,500,016 1,526,732
Debt Service Funds4,727,313 2,728,091 3,045,346 3,789,322
Unreserved reported in:
Special Revenue Funds2,585,542 3,096,445 1,705,798 2,901,921
Capital Projects Funds3,484,848 4,106,501 3,993,924 3,993,720
Total all other governmental funds15,614,527$ 25,027,975$ 21,058,198$ 16,537,986$
Total all funds18,813,232$ 28,404,378$ 24,846,109$ 20,609,282$
118
Schedule 3
Fiscal Year
200520062007200820092010
$ 943,474$ 974,517$ 1,157,142$ 111,806$ 196,790$ 182,211
3,367,721 3,345,606 3,304,729 3,884,309 3,930,996 4,071,049
$ 4,311,195$ 4,320,123$ 4,461,871$ 3,996,115$ 4,127,786$ 4,253,260
$ 6,010,974$ 5,625,355$ 3,137,313$ 3,189,829$ 3,528,529$ 2,844,901
- - - - - -
6,303,112 2,852,655 12,982,623 3,250,202 6,021,748 4,850,159
969,812 1,539,404 1,070,230 955,772 (24,957) 590,281
3,945,500 1,718,021 1,808,708 1,381,657 1,264,405 3,572,002
$17,229,398$11,735,435$18,998,874$ 8,777,460$10,789,725$11,857,343
$21,540,593$16,055,558$23,460,745$12,773,575$14,917,511$16,110,603
119
CITY OF HOPKINS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEAR
S
(modified accrual basis of accounting)
Fiscal Year
2001200220032004
Revenues
Property Taxes5,087,313$ 6,215,194$ 6,877,331$ 7,283,712$
Tax Increments2,730,232 2,003,743 2,214,835 2,177,518
Special Assessments1,253,592 1,363,167 1,460,464 1,441,885
Intergovernmental3,096,853 2,830,806 2,850,337 1,758,573
Licenses and Permits377,048 468,312 777,997 686,933
Charges for Services471,515 898,896 797,233 792,280
Fines and Forfeits167,252 148,112 181,893 197,337
Investment Earnings627,909 584,238 327,959 339,883
Miscellaneous338,543 460,422 224,320 700,012
Total revenues14,150,257 14,972,890 15,712,369 15,378,133
Expenditures
Current:
General Government1,043,394 1,061,960 1,259,121 1,094,526
Public Safety3,398,981 3,690,368 4,433,499 4,695,803
Health and Welfare- - 185,893 180,314
Highways and Streets1,693,361 1,652,143 1,674,836 1,681,484
Urban Redevelopment and Housing1,141,409 1,157,960 1,595,927 937,849
Culture and Recreation667,410 1,027,243 1,044,948 1,074,587
Other34,290 93,508 - -
Capital outlay4,667,505 4,480,058 9,030,629 6,651,109
Debt Service
Principal995,847 3,991,502 1,407,647 1,644,908
Interest and fiscal charges1,116,134 1,345,811 1,688,138 1,780,620
Bond Issuance Costs25,156 - - -
Total expenditures14,783,487 18,500,553 22,320,638 19,741,200
Excess (deficiency) of revenues
over expenditures(633,230) (3,527,663) (6,608,269) (4,363,067)
Other Financing Sources (Uses)
Sale of Property- - - -
Proceeds from Issuance of Debt2,125,000 14,170,000 3,050,000 -
Discount on Debt- - - -
Premium on Debt- - - -
Transfer In2,092,153 2,355,193 2,042,771 2,594,787
Transfer Out(2,090,379) (2,328,241) (2,602,175) (2,468,547)
Total other financing sources (uses)2,126,774 14,196,952 2,490,596 126,240
Net change in fund balances1,493,544$ 10,669,289$ (4,117,673)$ (4,236,827)$
Debt service as a percentage of
noncapital expenditures21.1%38.1%23.3%26.2%
120
Schedule 4
Fiscal Year
200520062007200820092010
$ 8,134,9157,788,557$ 8,473,516$ 8,844,113$ 9,377,127$ 9,795,318$
990,776970,846 1,050,601 1,186,395 1,636,535 2,147,517
1,288,4371,368,262 1,172,977 1,120,741 1,071,406 1,128,467
1,036,6451,177,016 2,115,670 1,053,405 1,220,766 1,215,163
540,120643,811 880,443 744,502 820,031 623,492
631,6551,017,343 729,365 872,388 875,470 800,115
203,830207,454 215,051 188,003 148,172 138,894
705,591358,336 638,796 318,074 135,569 106,128
692,649558,575 851,203 709,915 1,024,879 589,604
14,224,61814,090,200 16,127,622 15,037,536 16,309,955 16,544,698
1,366,2461,332,796 1,597,503 1,590,347 1,552,712 1,576,676
4,994,2734,848,336 5,290,802 5,779,047 5,888,481 5,881,633
176,502176,552 184,541 232,163 273,760 177,732
1,824,6581,812,403 2,091,043 2,224,338 2,139,351 2,082,853
944,577911,005 1,787,131 935,402 1,586,083 1,881,610
997,9871,093,699 1,122,891 1,289,323 1,278,108 1,339,695
-- - - - -
3,055,8152,489,137 5,830,516 1,228,755 1,556,121 1,358,792
4,926,2842,306,152 1,610,000 1,705,000 1,805,000 4,665,000
1,418,3111,535,171 1,131,514 1,100,211 1,037,372 953,232
-41,906 81,109 - 34,972 49,233
19,704,65316,547,157 20,727,050 16,084,586 17,151,960 19,966,456
(5,480,035)(2,456,957) (4,599,428) (1,047,050) (842,005) (3,421,758)
-- - - 341 -
-3,385,000 11,875,000 - 2,865,000 4,515,000
-(4,240) (72,905) - (24,400) (45,150)
-- 7,520 - - -
5,273,5921,625,994 14,940,055 1,043,155 1,088,875 7,808,068
(7,663,068)
(5,278,592)(1,618,486) (14,745,055) (898,155) (943,875)
(5,000)3,388,268 12,004,615 145,000 2,985,941 4,614,850
$ (5,485,035)931,311$ 7,405,187$ (902,050)$ 2,143,936$ 1,193,092$
27.6%38.1%18.9%18.9%18.4%30.5%
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
$174,592$ 158,422$136,803$ 147$ 85,442$ 899,667
2001$ 5 15,292 31.040
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 56.664
277,231 182,899 1,515,459
2005 1 ,000,569 256,942 163,616 243 48.944
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 47.574
404,674 177,975 1,570,690
2010 9 22,267 251,418 168,803 1,503 49.377
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 $1,000 of assessed value)
City Direct RateOverlapping Rates
GeneralTotal Direct
Obligationand
DebtTotalSchoolHennepinMetroTotalOverlapping
ServiceDirectDistrictCountyCouncilOtherOverlappingTax Rate
Basic Rate
Fiscal
Year
200128.916 2.124 31.040 44.220 37.620 5.820 2.310 89.970 121.010
200251.950 2.840 54.790 15.030 50.490 3.530 5.160 74.210 129.000
200349.190 6.910 56.100 20.590 50.610 3.830 6.010 81.040 137.140
200449.028 7.636 56.664 22.200 47.320 3.500 5.260 78.280 134.944
200544.049 4.895 48.944 19.176 44.172 3.304 5.243 71.895 120.839
200641.300 6.962 48.262 21.565 41.016 2.924 5.180 70.685 118.947
200739.574 6.288 45.862 19.019 39.110 2.671 5.746 66.546 112.408
200839.237 6.333 45.570 19.218 38.571 2.562 5.984 66.335 111.905
200941.346 6.228 47.574 20.080 40.413 2.579 5.834 68.906 116.480
201043.121 6.256 49.377 22.944 42.561 2.612 6.825 74.942 124.319
Source:Hennepin County, Minnesota Taxpayer Services Department
Notes: The City's basic rate is determined by the city's annual budget requirements as set by the City Council. Rates for debt service
are based on each year's requirements.
123
Schedule 7
CITY OF HOPKINS
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND TEN YEARS AG
O
20102001
PercentagePercentage
of Total of Total
CityCity
TaxTaxTaxTax
CapacitCapacitCapacitCapacit
yyyy
TaxpayealueRanaluealueRanalue
rVkVVkV
Super Valu1,114,910$ 15.04%1,658,227$ 112.23 %
Excelsior Crossings, LLC764,810 23.46- --
RE Capital Partners599,250 32.71- --
Greenfield Apartments, LLP302,800 41.37214,800 71.58
Ramsgate Apartments LLC242,000 51.09284,903 32.10
Southwest Real Estate, Inc.237,223 61.07384,288 22.83
Duke Realty Ltd Partnership233,250 71.05260,810 41.92
Hopkins Real Estate, LLC229,250 81.04- --
Hines Reit Mpls Ind LLC211,630 90.96- --
City Center Ventures, LLC199,250 100.90- --
Glaser Financial Group, Inc - -- 241,320 51.78
Alliant Tech- -- 220,486 61.63
Ryan Hopkins, LLC- -- 185,816 81.37
Fleming Companies- -- 182,100 91.34
Auburn Limited Partnership- -- 174,648 101.29
Total4,134,373$ 18.68%3,807,398$ 28.07 %
Total City 2010/2001 tax capacity22,135,067$ 13,562,000$
Source:
Hennepin County, Minnesota Assessor's Office
No
tes: Tax capacity is a percentage of total market value. For taxes payable in 2010 these class rates are 1.25% for
apartments and 1.5% of first $150,000 with balance at 2.0% for commercial/industrial properties.
124
125
126
Schedule 10
CITY OF HOPKINS
RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Bonded Debt Outstanding
Percentage of
Less: Amt
GeneralAvailable in TotalActual Taxable
alue of Pe
FiscalObligationDebt ServicePrimaryVr
YearBondsFundsGovernmentPropertyCapita
20012,760,000$ 1,479,638$ 1,280,362$ 0.142%74.68
200212,065,000 301,342 11,763,658 1.146%681.95
200314,955,000 498,383 14,456,617 1.239%823.32
200414,795,000 979,296 13,815,704 0.974%783.07
200514,120,000 716,119 13,403,881 0.884%758.35
200613,445,000 950,596 12,494,404 0.772%723.77
200713,135,000 1,080,940 12,054,060 0.720%694.08
200812,420,000 1,000,521 11,419,479 0.677%651.57
200911,685,000 880,866 10,804,134 0.688%618.05
201010,940,000 795,945 10,144,055 0.646%586.70
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, 2010
Estimated
EstimatedShare of
Net DebtPercentageOverlapping
OutstandingApplicableDebt
Overlapping:
Hennepin County683,934,500$ 1.20%8,207,214$
Hopkins ISD 270158,041,582 16.98%26,835,461
St. Louis Park ISD 28347,481,739 0.37%175,682
Hennepin Suburban Park District67,630,065 1.61%1,088,844
Hennepin Regional RR Authority39,570,778 1.20%474,849
Metropolitan Council181,078,903 0.51%923,502
Total Overlapping37,705,552
City of Hopkins Direct Debt9,975,562$ 100%9,975,562
Total Direct and Overlapping Debt:47,681,114$
Source:
Hennepin County, Minnesota Taxpayer Services - method of calculation is not availble from the
County.
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 the City. This process recognizes that, when considering the
City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.
(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
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)
200117,145160,833 32,597 10,903 3.5
200217,250166,167 33,348 10,948 4.4
200317,559170,998 34,081 11,447 4.6
200417,643178,147 35,292 11,416 4.3
200517,675188,330 37,078 10,896 3.7
200617,263193,990 37,988 10,828 3.9
200717,367205,857 39,985 10,770 4.5
200817,526216,678 41,739 10,760 6.4
200917,481226,158 43,238 10,785 6.7
201017,290220,438 41,859 10,693 6.5
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
20102001
PercentagePercentage
of Total of Total
TaxpayerEmployeesRankEmploymentEmployeesRankEmployment
Cargil2,350121.709%---%
ISD 270 Hopkins (1)1,400212.9331,430612.246
SuperValu1,200311.0851,540113.188
Augustana Chapel View Care Center22542.079---
Oak Ridge Country Club20451.88518091.541
Thermotech19061.75532542.783
Rudy Luther's Hopkins Honda16071.478---
City of Hopkins14081.293177101.516
Golden Living Center13491.238---
SunGard Financial Systems105100.970---
60025.138
Alliant Techsystems- -
ADC Telecommunications-40033.426
-
PGI Fulfillment, Inc.-30152.578
-
Advance Circuits-20771.773
-
Quality Assured Label, Inc.-18581.584
-
l6,108
Tota
$ 56.425%$ 5,345 45.774%
Source:
Minnesota Department of Employment and Economic Development, Metropolitan Council and Minnesota State
Business Directory
Notes:
(1) Includes total number of employees located in facilities throughout Independent School District 270, Hopkins.
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,
2001200220032004200520062007200820092010
General Government
Administrative Services4.53 5.11 5.11 3.53 5.55 5.55 5.15 5.05 4.95 4.80
Finance4.00 4.00 4.00 4.30 4.60 4.60 4.60 4.60 4.60 4.60
Municipal Building2.00 1.50 1.50 0.85 1.40 1.45 1.45 1.45 1.45 1.45
Community Services10.30 10.30 10.30 9.74 8.90 8.90 9.48 9.85 9.95 9.95
Public Safety
Police37.50 40.25 40.25 39.00 37.50 38.50 39.40 39.45 40.00 39.00
Fire0.80 0.90 0.90 0.90 1.20 1.20 1.20 1.20 1.20 1.20
Public Works22.67 23.05 23.05 20.00 19.50 18.60 18.59 18.60 18.70 17.77
Recreation
ctivity Cente 3.663.65 3.66 2.55 4.10 4.10 4.00 3.30 3.30 3.30
Ar
Skate Park- - - - - 0.05 0.05 0.05 0.05 0.05
Planning & Zoning1.85 1.28 1.28 1.20 1.20 1.20 1.20 1.15 1.15 1.35
Total General Government87.30 90.05 90.05 82.07 83.95 84.15 85.12 84.70 85.35 83.47
Special Revenue Funds
Economic Development1.80 2.37 2.37 2.40 1.60 1.60 1.60 1.78 1.75 1.75
Paratransit0.15 0.15 0.15 0.20 0.20 0.20 0.20 0.20 0.20 -
Housing Rehabilitation1.05 1.05 1.05 0.65 0.70 0.70 0.70 0.85 0.85 0.85
Parking1.80 1.80 1.80 1.20 2.00 2.00 1.00 1.00 1.00 1.00
Section 81.20 1.20 1.20 1.40 1.40 1.40 1.35 - - -
0.58 0.58 0.07 0.05 0.05 0.10 0.10 0.10 0.40
Communication1.05
Depot Coffee House0.67 0.73 0.73 1.08 1.93 - 0.05 1.00 1.00 1.00
rt Cente 3.92- 3.72 4.22 4.05 4.05 4.05 4.05 4.05
Ar
Total Special Revenue Funds7.72 7.88 11.80 10.72 12.10 10.00 9.05 8.98 8.95 9.05
Enterprise Funds
Water3.82 4.18 4.18 3.56 3.24 3.25 3.25 3.76 3.67 3.11
3.353.71 3.35 3.23 3.55 3.56 3.56 4.07 4.08 3.44
Sanitary Sewe
r
Refuse3.68 3.68 3.68 3.89 4.15 4.08 4.08 4.09 4.12 3.40
Storm Sewer0.82 0.62 0.62 0.47 0.47 0.46 0.46 0.46 0.46 0.42
Pavilion/Ice Arena2.82 2.37 2.37 2.44 2.44 2.90 2.72 3.80 3.80 3.05
rt Cente 3.923.78 - - - - - - - -
Ar
Skate Park0.35 0.38 0.38 - - - - - - -
1.901.90 1.90 1.90 1.90 2.40 2.45 2.05 2.05 2.05
Housing and Redevelopmen
t
Total General Government20.88 20.40 16.48 15.49 15.75 16.65 16.52 18.23 18.18 15.47
Total 118.33115.90 118.33108.28111.80110.80110.69111.91 112.48 107.99
Source: City Finance Office
133
CITY OF HOPKINS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Years
Fiscal
Function/Program20012002200320042005
General Government
Elections12121
Registered voters9,1019,1388,83011,5189,708
Number of votes cast2,3906,6299098,8802,601
Voter participation (registered)26.3%72.5%10.3%77.1%26.8%
Public Safety
Police
Total Calls for Service12,51815,16117,11419,64819,049
Sworn Officers2424242526
911 Calls for ServiceN/A6,2077,1925,5134,908
Traffic Stops4,0252,0052,8133,0442,916
Parking Citations2,2191,9392,7051,5061,122
Fire
Fires5143524876
False Alarm117132113103107
Fire Runs342330329326337
Medical Runs216213148113121
Average Response Time (minutes)5.05.15.15.35.3
Inspections
Building Permits498487498542365
Value of Building Permits$17,070,262$34,562,884$40,363,863$34,316,423$32,333,498
Public Works
Miles of seal coatingN/A4444
Miles of crack sealingN/A3.253.253.253.25
Sidewalk repairs in square feetN/A2,8752,8752,8752,875
Alley repairs in square yardsN/A173173157143
Culture and Recreation
Art Center
Bookings N/A2,9283,5515,5985,598
Reserved HoursN/A15,36922,33536,95036,950
Customer Visits for Events/ActivitiesN/A156,400174,100182,800182,800
Water
Gallons of water pumped (in millions)907.9774.6780.2732.4743.6
Number of well house inspections2,4882,4882,4882,4882,488
Number of hydrants flushed100+100+100+100+100+
Water Rate1.20$ 1.20$ 1.20$ 1.40$ 1.40$
Sanitary Sewer
Sanitary sewage flow (in millions of gallons)717.8678.4634.3653.2647.3
Miles of sewer lines jettedn/an/an/a14.715.0
Number of manholes checked/cleaned292222262292222
Lift Station Maintenance checks4,3744,3744,3744,3744,374
Sewer Rate2.25$ 2.25$ 2.25$ 2.25$ 2.25$
Refuse
Number of refuse accounts2,6642,6632,6952,6702,673
Tons of refuse collected2,8273,2802,6242,6712,643
Tons of recycled material (residential)1,2891,0821,3051,2481,185
Refuse rate$11.00-14.45$11.00-14.45$11.00-14.45$11.00-14.45$12.50-15.90
Recycling rate2.25$ 2.75$ 2.75$ 2.75$ 2.75$
Pavilion/Ice Arena
Ice time rental hours1,4781,4791,4871,5211,433
Turf use hours405403450464362
Mezzanine rental use000162351
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
20062007200820092010
21212
10,6218,33011,2339,5489,393
6,2791,1468,8358615,761
59.1%13.8%78.7%9.0%61.3%
18,56719,13719,44019,23819,141
2626262626
4,5474,5884,6584,5194,937
3,3214,2873,0422,6982,597
841747647925914
5970453858
1017010110798
297350291220370
6859675666
5.34.34.34.24.0
494377897381422
$14,272,117$50,544,210$45,074,024$54,688,290$10,968,955
43.22.60.550.95
3.252.884.973.711.99
2,8754,2794,9306,2285,252
130253238142170
5,5706,0545,5935,3924,913
35,71039,06034,76033,78030,414
202,000203,000212,000203,100205,319
785.5794.7774.0813.0794.0
2,4882,4882,4882,4842,501
100+100+100+130144
$ 1.401.40$ 1.65$ 1.86$ 1.90$
638.2641.3626.2580.2567.8
14.617.314.614.215.4
2624413441,2901,301(2)
4,3744,3743,8554,3124,310
$ 2.502.50$ 2.70$ 3.10$ 3.40$
2,7662,6702,6782,6892,695
2,5492,4482,3932,3352,298
1,1181,1381,0801,1941,148
$12.50-15.90$12.50-15.90$13.20 - 17.25$15.85 - 21.85$15.85 - 21.85
$ 2.752.75$ 3.25$ 3.50$ 3.75$
1,4431,4581,4601,4561,456
407442479624624
339345400495776
135
Schedule 18
CITY OF HOPKINS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRA
M
Last Ten Years
Fiscal Year
Function/Program2001200220032004200520062007200820092010
Public Safety
Police
Stations1111111111
Patrol Units10101010101111111111
Fire
Stations1111111111
Public Works
Highways (miles)3.573.573.573.573.573.573.573.573.573.57
County Highways5.695.695.325.325.325.325.325.325.325.32
City Streets (miles)47.1347.1347.5047.5047.5047.5047.5047.5047.5047.50
Alleys (miles)9.529.529.529.529.529.529.529.529.529.52
Streetlights350350360360398398398398398398
Traffic Signals44444444444444444444
Refuse collection trucks3333333333
Culture & Recreation
Parks
Parks16161616161616161616
Park Trails3334444444
Park Acres99102102104104104104104104104
Park Shelters10101010101011111111
Playgrounds11111111111111111111
Skateboard Park/Inline Skating1111111111
Skating Rinks7777777777
Hockey Rinks6666655555
Basketball Courts6666666666
Softball Fields4444444444
Swimming Beach1111111111
Tennis Courts1212128888888
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 Connections3,1263,1443,1573,1633,1633,1683,1683,1683,1683,168
Sanitary Sewer
Collection System (miles)45.4645.4645.4645.4645.4645.4645.4645.4645.4645.46
Sewer Connections3,0503,0643,0773,0813,0813,0863,0863,0863,0863,086
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