2014 Budget - Special Revenue and Enterprise FundsCITY OF HOPKINS FINANCE DEPARTMENT
MEMORANDUM
Date: November 8, 2013
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2014 Budget — Special Revenue and Enterprise Funds
Continuing with the 2014 Budget process we will look at the Special Revenue and Enterprise
Funds. At the November 12th 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
2014
SPECIAL REVENUE AND
ENTERPRISE FUND
BUDGETS
CHEMICAL ASSESSMENT
2013 2014 %age
Budget Budget Incr (Decr)
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
11/08/2013
1
ECONOMIC DEVELOPMENT
Tax levy set at $273,980 which is the maximum allowed
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 - $697,098
525 Mainstreet
Will be purchasing additional land to be held for resale by 12/30
REAL ESTATE PURCHASES & SALES
2013
2014
°/nage
Budget
Budget
Incr (Decr)
Revenues
$240,000
$287,480
19.78%
Expenditures
$286,814
$280,488
-2.21%
Revenues over (under)
Expenditures
($46,814)
$6,992
114.94%
Tax levy set at $273,980 which is the maximum allowed
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 - $697,098
525 Mainstreet
Will be purchasing additional land to be held for resale by 12/30
REAL ESTATE PURCHASES & SALES
► Fund has balance of $120,009
► Right of way fees — only source of income
► No expenses unless land is purchased
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2
2013
2014
%age
Budget
Budget
Incr (Decr)
Revenues
$4,200
$3,850
-8.33%
Expenditures
$0
$0
-
Revenues over (under)
Expenditures
$4,200
$3,850
-8.33%
► Fund has balance of $120,009
► Right of way fees — only source of income
► No expenses unless land is purchased
11/08/2013
2
WR"I" Wo
Rate increase for 2014 increasing the monthly, quarterly & annual along
with implementing an overnight parking fee
No large maintenance projects planned
One part-time enforcement officer at 29 hrs a week
Court fines are estimated at $22,000
Parking permits are estimated at $73,000
Three components — enforcement, operations, ramp maintenance
Enforcement - $61,195
Operations - $4,841
Ramp Maintenance - $29,833
COMMUNICATIONS
2013 2014 %age
Budget Bud et Incr (Decry
Revenues $223,500 $236,500 5.82%
Expenditures $218,264 $208,954 -4.27%
Revenues over (under)
Expenditures $5,236 $27,546 426.09%
Franchise fees - $215,000
PEG access fees - $20,000 for equipment
Web Designer - $29,355
Web streaming - $8,400
SW Cable Commission - $10,000
Annual transfer to Arts Center - $86,920
Computer equipment - $9,500
11/08/2013
3
2013
2014
%age
Budget
Budget
Incr (Decr)
Revenues
$88,500
$96,000
8.47%
Expenditures
$88,858
$95,869
7.89%
Revenues over (under)
Expenditures
($358)
$131
136.59%
Rate increase for 2014 increasing the monthly, quarterly & annual along
with implementing an overnight parking fee
No large maintenance projects planned
One part-time enforcement officer at 29 hrs a week
Court fines are estimated at $22,000
Parking permits are estimated at $73,000
Three components — enforcement, operations, ramp maintenance
Enforcement - $61,195
Operations - $4,841
Ramp Maintenance - $29,833
COMMUNICATIONS
2013 2014 %age
Budget Bud et Incr (Decry
Revenues $223,500 $236,500 5.82%
Expenditures $218,264 $208,954 -4.27%
Revenues over (under)
Expenditures $5,236 $27,546 426.09%
Franchise fees - $215,000
PEG access fees - $20,000 for equipment
Web Designer - $29,355
Web streaming - $8,400
SW Cable Commission - $10,000
Annual transfer to Arts Center - $86,920
Computer equipment - $9,500
11/08/2013
3
DEPOT COFFEE
HOUSE
2013
2014 %age
Budget
Budget Incr (Decrl
Revenues $330,000
$354,650 7.47%
Expenditures $327,300
$354,456 8.30%
Revenues over (under)
-1.92%
Expenditures $2,700
$194 -92.81%
2013 —Additional support for the Youth Project is provided by the General
Fund, Minnetonka and Three Rivers Park District totaling $40,000
The coffee operations provides a minimum of
$10,000 in support to the
Youth Project
DEPOT COFFEE HOUSE
Budget by Department
Youth Proiect
2013
2014
%age
Budge
Budge
Budget
Incr Decr
Revenues
$130,000
$127,500
-1.92%
Expenditures
$128,173
$127,310
-0.67%
Revenues over (under)
$4 -99.54%
Expenditures
$1,827
$190
-89.60%
Coffee Operations
2013
2014 %age
Budge
Budget Incr Decr
Revenues
$200,000
$227,150 13.58%
Expenditures
$199,127
$227,146 14.07%
Revenues over (under)
Expenditures
$873
$4 -99.54%
11/08/2013
11
DEPOT COFFEE HOUSE (CONT)
Youth Project
Levy for lease - $50,000 from school
One full-time and one part-time staff, many volunteers
$3,000 for capital purchases — table replacement and chair purchase
$10,000 City participation
$15,000 joint recreation participation
$15,000 Three Rivers participation
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.
ARTS
CENTER
2013
2014
%age
Budget
Budget
Incr (Decd
Revenues
$766,310
$777,376
1.44%
Expenditures
$765,418
$744,428
-2.74%
Revenues over (under)
Expenditures
$892
$32,948
3593.72%
Three full-time, two 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 - $23,200
Projected to lose money on programming
Budgeted grants at $52,000 — MN Arts Board
11/08/2013
E
TAX INCREMENT FUNDS
2013
2014
Revenues
Cash
Budget
over (under)
Balance
Revenues Expenditures
Expenditures
11/0612013
TIF 1-2 Entertainment $58,100 $3,000
$55,100
$83,495
TIF 2-6 Handicapped Hsg $43,778 $11,664
$32,114
$5,806
T1F 2-9 Oaks of Mainstreet $141,200 $120,127
$21,073
$451,490
T1F 2-11 Super Valu $1,310,000 $1,363,138
($53,138)
$1,049,354
5th Avenue Flats $0 $2,000
($2,000)
($377,143)
T1F 1-4 Marketplace & Main $40,000 $40,000
$0
($1,654)
Funds will be administered pursuant to TIF Management Plan developed
by Ehlers and staff and presented to City Council.
WATER
Water rates will increase 4% to $2.10/1,000 gallons
Three bond issues outstanding
Debt transfer for PW bldg is back in the water fund - $45,000
Items of Note:
Misc Repair —replace effluent & high service valves, new roof on well #4 & 6 +$100,000
SCADA upgrade- +$35,000
Consultant costs to upgrade wells & plant and services regarding wellhead protection -
+$10,000
Mai nt/Repai r -Structures — Storz upgrade for existing fire hydrants - +$25,000
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0
2013
2014
%age
Budget
Budget
Incr (Decd
Revenues
$1,464,385
$1,605,484
9.64%
Expenditures
$1,290,716
$1,601,651
24.09%
Revenues over (under)
Expenditures
$173,669
$3,833
97.79%
Water rates will increase 4% to $2.10/1,000 gallons
Three bond issues outstanding
Debt transfer for PW bldg is back in the water fund - $45,000
Items of Note:
Misc Repair —replace effluent & high service valves, new roof on well #4 & 6 +$100,000
SCADA upgrade- +$35,000
Consultant costs to upgrade wells & plant and services regarding wellhead protection -
+$10,000
Mai nt/Repai r -Structures — Storz upgrade for existing fire hydrants - +$25,000
11/08/2013
0
WATER PROJECTS
Street Improvements - $350,000
TOTAL 2014 PROJECT COSTS - $350,000
Met Council fees increased 1.53% to $1,240,020 and make up 54% of the
budget
Rates to increase 5% to $4.10/ 1,000 gallons of water used
Three bond issues outstanding
Debt transfer for PW bldg is back in the Sewer Fund - $50,000
Items of Note:
Maint/Repr — Other —Valve & pump work at L 3 - + 10,000
Expert & Professional Services - +$15,500
11/08/2013
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2013
2014
%age
Budget
Budget
Incr Decr
Revenues
$2,037,150
$2,104,150
3.29%
Expenditures
$2,151,056
$2,313,265
7.54%
Revenues over (under)
Expenditures
($113,906)
($209,115)
-83.59%
Met Council fees increased 1.53% to $1,240,020 and make up 54% of the
budget
Rates to increase 5% to $4.10/ 1,000 gallons of water used
Three bond issues outstanding
Debt transfer for PW bldg is back in the Sewer Fund - $50,000
Items of Note:
Maint/Repr — Other —Valve & pump work at L 3 - + 10,000
Expert & Professional Services - +$15,500
11/08/2013
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SANITARY SEWER PROJECTS
Street Improvements - $225,000
TOTAL 2014 PROJECT COSTS - $225,000
STORM SEWER
2013 2014
%age
Bud et Budget
Incr (Decd
Revenues $809,940 $803,000
-0.86%
Expenditures $533,304 $479,638
-10.06%
Revenues over (under)
Expenditures $276,636 $323,362
16.89%
No rate increase scheduled
Three bond issues outstanding
No longer picking up the debt transfers for Water, Sewer
funds - $95,000
Storm sewer transfer for PW bldg debt - $25,000
11/08/2013
0
STORM SEWER PROJECTS
Storm Water Management Projects - $880,000
Provide outlet pipe to Shady Oak Pond into CSAH 61 storm drainage in
conjunction with the Shady Oak Road construction - $230,000
Cottageville Park Storm water Improvements - $650,000
Storm Drainage -Alley's - $20,000
TOTAL 2014 PROJECT COSTS - $900,000
Revenues
Expenditures
Revenues over (under)
Expenditures
REFUSE
2013
2014
%age
Budget
Budget
Incr (Decrl
$988,700
$932,200
-5.71%
$878,275
$872,206
-0.69%
$110,425 $59,994 45.67%
Disposal rates no increase
Last increased in 2013
Recycling rates — increase from $4/month to $4.25/month
Scheduled truck purchases — 2015 at $101,600 and $204,800
One truck scheduled for 2014 was moved back to 2015
Rear loading truck - $101,600
Automated side loader truck- $204,800
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4
REFUSE (CONT)
Programs under Refuse
Bulk Collection — budget stable
Yard Waste/Leaf Collection — budget up 6.62%
Recycling — budget up 0.95%
Brush Service — budget up 4.64%
Disposal — budget down 3.36%
No capital costs for 2014
Transfer for PW bldg debt - $25,000
PAVILION
Capital purchases for 2014 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 most expenses held stable or were decreased
Staffing - two full-time, one regular part-time and seasonal part-time staff
11/08/2013
10
2012
2013
°/aa g e
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 2014 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 most expenses held stable or were decreased
Staffing - two full-time, one regular part-time and seasonal part-time staff
11/08/2013
10
PAVILION
School lease is up in November 2013 and was not renewed
Loss of $19,000 in income
Depreciation is $72,000 per year and is a non-cash expense
If depreciation was excluded from expenditures the Pavilion would have a
net income of $6,138
Revenues are covering operational costs but not depreciation
Upcoming capital items include:
2014 — Roof replacement - $120,000
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
2018 — Mezzanine HVAC rooftop unit replacement, entry and lobby door replacement,
paint exterior, paint arena ceiling and bar joint - $73,500
11/08/2013
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