III.2. Financial Management Plan and 2021 Budget Process
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: January 21, 2020
Subject: Financial Management Plan and 2021 Budget Process
_____________________________________________________________________
PURPOSE
Stacie Kvilvang, Municipal Advisor with Ehlers will present the City’s Financial
Management Plan (FMP). Nick Bishop, the City’s Finance Director will present the
planned process for the 2021 Budget.
INFORMATION
Financial Management Plan
Traditionally cities have taken a short term view for financing city operations. The one
year budget is still the norm for most cities. Hopkins began to use long term planning
for large expenditures such as construction projects and large pieces of equipment in
the 1980s. One year operating budgets were used by the City through 2014.
Beginning with the 2015 Budget, the City decided to take a long term vie w of financing
its operations through the use of a FMP. The FMP is a multi-year fiscal plan for all tax-
supported funds. It integrates existing debt, Capital Improvement Plans, Equipment
Replacement Plans, future debt, tax base growth and future operating expenses. The
FMP is used to level out expenditures and bond costs to smooth tax increases, ensure
funding is available to carry out the City’s vision and as a tool to better understand
effects of budget decisions.
Finance Department
2021 Budget Process
Approving the City’s Annual Budget is one of the most important decisions made by
City Council. The 2021 budget will be based on staff recommendations and input
received from the community.
The public is invited to attend any or all City Council meetings where the budget is
discussed. The City will also provide additional engagement opportunities for residents
who wish to participate in the budget process.
January 21, 2020 starting at 7:00 in City Hall Council Chambers
Information on the City’s financial management plan and how the budget
process works will be presented during a City Council meeting.
March 6 – May 19, 2020
The City’s Budget Survey will be available on the City’s website or at City Hall.
May 19, 2020 from 6:00 to 7:00 at City Hall
A public meeting will be held to discuss the budget process and the Financial
Management Plan, focusing on the next 5 years. There will be opportunities for
the public to provide input.
August 18, 2020 from 6:00 to 7:00 at City Hall
A public meeting will be held to discuss the budget process, Financial
Management Plan and the proposed 2021 budget. There will be opportunities
for the public to provide input.
September 1 or 15, 2020 starting at 7:00 in City Hall Council Chambers
A preliminary budget and tax levy will be approved.
November 30, 2020 starting at 7:00 in City Hall Council Chambers
Truth in Taxation hearing will be held as a separate City Council meeting. It is
being held on a Monday to avoid conflicts with other taxing jurisdictions.
December 1 or 15, 2020 at 7:00 in City Hall Council Chambers
A final budget and tax levy will be approved.