2013 Budget - Special Revenue and Enterprise FundsCITY OF HOPKINS
MEMORANDUM
Date: October 5, 2012
To: Mayor & City Council
From: Christine Harkess, Finance Director
FINANCE DEPARTMENT
Subject: 2013 Budget — Special Revenue and Enterprise Funds
Continuing with the 2013 Budget process we will look at the Special Revenue and Enterprise
Funds. At the Oct 9a' work session we will go through each special revenue fund, some with
more detail than others and discuss the status of those funds. We will also review each of the
Enterprise funds and discuss the proposed rate increases.
As with the General Fund we will put the presentation on the SMART board. I think that
worked very well last time.
Attached:
1. Power point on Special Revenue & Enterprise Funds
2013
SPECIAL REVENUE AND
ENTERPRISE FUND
BUDGETS
CHEMICAL ASSESSMENT
2012 2013 %age
Budget Budget Incr (Decry
Revenues $45,000 $45,000 0.00%
Expenditures $45,000 $45,000 0.00%
Revenues over (under)
Expenditures $0 $0 -
Expenditures are covered by grant revenues
Additional grants have been received in past years but are not
guaranteed.
Possible state increase in operations budget to $55,000
09/28/2012
1
ECONOMIC DEVELOPMENT
Tax levy set at $225,000 which is below the maximum allowed of $271,946
Budget includes $61,000 transfer to Arts Center
Includes 1.6 FTE staff
This is the fund used for developer incentives
Land held for resale - $1,817,098
525 Mamstreet - $697,098
Park Nicollet Site - $1,120,000 (wrote off $605.472 — total purchase $1,725,472)
REAL ESTATE PURCHASES & SALES
2012
2013
%age
Budget
Budget
Incr (Decr)
Revenues
$191,000
$240,000
25.65%
Expenditures
$268,553
$286,814
6.80%
Revenues over (under)
Expenditures
($77,553)
($46,814)
-39.64%
Tax levy set at $225,000 which is below the maximum allowed of $271,946
Budget includes $61,000 transfer to Arts Center
Includes 1.6 FTE staff
This is the fund used for developer incentives
Land held for resale - $1,817,098
525 Mamstreet - $697,098
Park Nicollet Site - $1,120,000 (wrote off $605.472 — total purchase $1,725,472)
REAL ESTATE PURCHASES & SALES
Fund has balance of $1 15,444
Right of way fees — only source of income
No expenses unless land is purchased
09/28/2012
2
2012
2013
%age
Budget
Budget
Incr(Decr)
Revenues
$5,800
$4,200
-27.59%
Expenditures
$0
$0
-
Revenues over (under)
Expenditures
$5,800
$4,200
-27.59%
Fund has balance of $1 15,444
Right of way fees — only source of income
No expenses unless land is purchased
09/28/2012
2
PARKING
2012
2012
2013
%age
Budget
Budget
Incr(Decr)
Revenues $88,500
$94,000
6.21%
Expenditures $88,130
$89,094
1.09%
Revenues over (under)
► PEG Access Fees - $15,000 for equipment
Expenditures $370
$4,906
1225.95%
. No rate increase for 2013
► No large maintenance projects planned
► One part-time enforcement officer at 29 hrs a week
► Court fines are estimated at $20,000
► Parking permits are estimated at $73,000
► Three components — enforcement, operations, ramp maintenance
Enforcement - $59,368
Operations - $4,869
Ramp Maintenance - $24,857
COMMUNICATIONS
2012
2013 °/aage
Budget
Budget Incr Decr
Revenues $201,500
$208,500 3.47%
Expenditures $209,878
$218,264 4.00%
Revenues over (under)
Expenditures ($8,378)
($9,764) 16.54%
► Franchise fees - $207,000
► PEG Access Fees - $15,000 for equipment
► Web Designer - $28,500
► Citywide survey - $20,000
Web streaming - $8,400
SW Cable Commission - $10,000
Annual transfer to Arts Center - $86,920
Computer equipment - $5,000
09/28/2012
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DEPOT COFFEE
HOUSE
2012
2013 %age
Budget
Budget Incr(Decr)
Revenues $130,000
$330,000 153.85%
Expenditures $120,175
$327,300 172.35%
Revenues over (under)
Expenditures $9,825
$2,700 -72.52%
► 2012 — budget is for the Youth Project only
City added coffee business in Feb 2012
► 2013 -Added budget for Coffee Operations
► Budget by Department
Youth Coffee
2013 Budget Project Operations
Revenues $130,000 $200,000
Expenditures $128,173 $199,127
Revenues over (under)
Expenditures $1,827 $873
DEPOT COFFEE HOUSE (CONT)
Youth Project
Levy for lease - $50,000 from school
One full-time and one part-time staff, many volunteers
$10,000 for capital purchases — computer upgrade and AV equipment for meeting
space
$10,000 City participation
$15,000 joint recreation participation
$15,000 Three Rivers participation (budgeted but not yet committed)
Coffee Operations
Budgeted a break even budget
One full-time staff, several part-time
Goal is to make enough money to support the Youth Project and fill the gap left by
grant funds that were not received or renewed.
09/28/2012
N
ARTS CENTER
2012 2013 °/oage
Budget Budget Incr Decr
Revenues $781,247 $766,310 -1.91%
Expenditures $779,452 $765,418 -1.80%
Revenues over (under)
Expenditures $1,795 $892 -50.31%
No LGA — creates a hole in the budget
Four full-time, one regular part-time staff plus seasonal part-time and
many volunteers
Projected to make money on facility operations
Rentals and leases are main source of income
Facility fees - $27,000
Projected to lose money on programming
Have received a 3 -year MN State Arts Board grant - $34,518 for 2013
TAX INCREMENT FUNDS
Funds will be administered pursuant to TIF Management Plan developed
by Ehlers and staff and presented to City Council.
09/28/2012
5
Revenues
Cash
over (under)
Balance
Revenues
Expenditures
Expenditures
09/2712012
TIF 1-2 Entertainment
$58,100
$3,000
$55,100
$68,169
TIF 2-6 Handicapped Hsg
$19,124
$1,950
$17,174
$7,699
TIF 2-9 Oaks of Mainstreet
$142,000
$121,471
$20,529
$437,777
TIF 2-11 Super Valu
$2,033,000
$1,204,768
$828,232
$1,256,010
5th Avenue Flats
$0
$2,500
($2,500)
($371,641)
TIF 1-4 Marketplace & Main
$5,000
$5,250
($250)
$2,118
Funds will be administered pursuant to TIF Management Plan developed
by Ehlers and staff and presented to City Council.
09/28/2012
5
WATER
2012 Budget 2013 Budget °/aage Incr
Revenues $1,387,870 $1,464,385 5.51%
Expenditures $1,234,153 $1,307,798 5.97%
Revenues over (under)
Expenditures $153,717 $156,587 1.87%
Water rates will increase 5% to $2.06/ 1,000 gallons
Three bond issues outstanding
Debt transfer for PW bldg is being made by the Storm Sewer Fund - $45,000
Items of Note:
Misc Repair — replace effluent & high service valves +$30,000
New meters at Well #4 and filter plant - +$24,000
Consultant costs to upgrade wells & plant and services regarding wellhead protection -
+$14,000
Maint/Repair-Structures — Storz upgrade for existing fire hydrants - +$5,000
WATER PROJECTS
Water Meter Replacement - 4th year - $95,000
Street Improvements - $1,100,000
Emergency Water Connection with Edina - $20,000
Emergency Shut-off Valves - $33,000
TOTAL 2013 PROJECT COSTS - $1,248,000
09/23/2012
L
SANITARY SEWER
2012
2013
%age
Budget
Budget
Incr (Decr)
Revenues $2,156,500
$2,073,150
-3.87%
Expenditures $1,993,348
$2,151,056
7.91%
Revenues over (under)
Expenditures $163,152
($77,906)
-147.75%
Met Council fees increased 8.64% and make up 57% of the budget
Rates to increase 5% to $3.95/1,000 gallons of water used
Two bond issues outstanding
Debt transfer for PW bldg is being made by the Storm Sewer Fund - $50,000
Items of Note:
Maint/Repr — Other — rebuild pumps at Lift Station #5 - + 19,000
Contractual Services — sewer lining, manhole repair and televising main lines - +$39,000
SANITARY SEWER PROJECTS
Street Improvements - $700,000
Lift Stations - $15,000
TOTAL 2013 PROJECT COSTS - $715,000
09/28/2012
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STORM SEWER
2012
2013
%age
Budget
Budget
Incr (Decr)
Revenues $811,340
$809,940
-0.17%
Expenditures $527,521
$531,832
0.82%
Revenues over (under)
Expenditures $283,819
$278,108
-2.01%
No rate increase scheduled
Three bond issues outstanding
Picking up the debt transfers for Water, Sewer funds - $95,000
Storm sewer transfer for PW bldg debt - $25,000
STORM SEWER PROJECTS
Street Improvements - $500,000
Cottageville Park - $250,000
TOTAL 2013 PROJECT COSTS - $750,000
09/28/2012
,�
REFUSE
► Disposal rates to increase —
30 gallon - $16.85 (no change) 56¢ gallon
► 60 gallon - $20.85 (increase of $1 or 5%) 34.75¢ gallon
► 90 gallon - $24.30 (increase of $1.15 or 5%) 27¢ gallon
► Recycling rates — no increase, remain at $4/month
► Scheduled truck purchases — 2014 at $101,600 and 2015 at $204,800
Need to set aside cash for the purchase of these two items
REFUSE (CONT)
► Programs under Refuse
Bulk Collection — budget down 2.87%
Yard Waste/Leaf Collection —budget down 16.18%
► Recycling — budget down 6.36%
► Brush Service — budget down 9.05%
► Disposal — budget down 4.58%
► No capital costs for 2013
► Transfer for PW bldg debt - $25,000
09/28/2012
G
2012
2013
%age
Budget
Budget
Incr (Decr)
Revenues
$963,032
$988,700
2.67%
Expenditures
$929,976
$873,230
-6.10%
Revenues over (under)
Expenditures
$33,056
$115,470
249.32%
► Disposal rates to increase —
30 gallon - $16.85 (no change) 56¢ gallon
► 60 gallon - $20.85 (increase of $1 or 5%) 34.75¢ gallon
► 90 gallon - $24.30 (increase of $1.15 or 5%) 27¢ gallon
► Recycling rates — no increase, remain at $4/month
► Scheduled truck purchases — 2014 at $101,600 and 2015 at $204,800
Need to set aside cash for the purchase of these two items
REFUSE (CONT)
► Programs under Refuse
Bulk Collection — budget down 2.87%
Yard Waste/Leaf Collection —budget down 16.18%
► Recycling — budget down 6.36%
► Brush Service — budget down 9.05%
► Disposal — budget down 4.58%
► No capital costs for 2013
► Transfer for PW bldg debt - $25,000
09/28/2012
G
WART 012
Capital purchases for 2013 are an ice machine and ice edger - $185,000
Programs of the Pavilion
Ice Rental — ice rental
Soccer — turf rent & leagues
Dry Floor - rentals
Mezzanine — rentals and leases
With the exception of electricity most expenses were not increased
Two full-time, one regular part-time and seasonal part-time staff
PAVILION
School lease is up in November 2013 and will be re -negotiated in 2012-13
Depreciation is $68,000 per year and is a non-cash expense
If depreciation was excluded from expenditures the Pavilion would have a
net income of $17,21 1
Revenues are covering operational costs but not depreciation
Upcoming capital items include:
2014 — Roof replacement - $1 20.000
2015 — Gas Fired Rooftop furnace and Evaporator condenser replacement - $69,000
2016 — Overhead Door replacement and Indoor Turf replacement - $135,000
2017 - Desiccant replacement of Dehumidification System and Skate Tile Lobby
improvement - $51,000
09/28/2012
10
2012
2013
°/oage
Budget
Budget
Incr (Decr)
Revenues
$361,180
$366,100
1.36%
Expenditures
$419,005
$416,889
-0.51%
Revenues over (under)
Expenditures
($57,825)
($50,789)
-12.17%
Capital purchases for 2013 are an ice machine and ice edger - $185,000
Programs of the Pavilion
Ice Rental — ice rental
Soccer — turf rent & leagues
Dry Floor - rentals
Mezzanine — rentals and leases
With the exception of electricity most expenses were not increased
Two full-time, one regular part-time and seasonal part-time staff
PAVILION
School lease is up in November 2013 and will be re -negotiated in 2012-13
Depreciation is $68,000 per year and is a non-cash expense
If depreciation was excluded from expenditures the Pavilion would have a
net income of $17,21 1
Revenues are covering operational costs but not depreciation
Upcoming capital items include:
2014 — Roof replacement - $1 20.000
2015 — Gas Fired Rooftop furnace and Evaporator condenser replacement - $69,000
2016 — Overhead Door replacement and Indoor Turf replacement - $135,000
2017 - Desiccant replacement of Dehumidification System and Skate Tile Lobby
improvement - $51,000
09/28/2012
10