On the agenda: Hopkins meeting — surveillance camera (Jul 14)

HOPKINS CITY COUNCIL
SPECIAL WORK SESSION AGENDA
Tuesday, July 14, 2026
5:00 pm
RASPBERRY ROOM AT HOPKINS CITY HALL

I.

CALL TO ORDER

II.

PRESENTATIONS
1. 2027 General Fund Budget and Tax Levy; Bishop

III.

ADJOURN

Finance Department

CITY OF HOPKINS

Memorandum
To:

Honorable Mayor and Council Members
Mike Mornson, City Manager

From:

Nick Bishop, Finance Director

Date:

July 14, 2026

Subject:
2027 General Fund Budget and Tax Levy
_____________________________________________________________________
PURPOSE
To provide input and guidance for the 2027 General Fund Budget and Tax Levy.
INFORMATION
2027 General Fund Budget and Tax Levy
During the January 9 Goal Setting meeting City Council discussed the budget and
weighed the importance of continuing the City’s Mission (Inspire. Educate. Involve,
Communicate) and being stewards of taxpayer money. Discussion topics included an
estimated 7% increase on base level operating expenditures, temporary reductions and
delayed projects in the 2026 budget, CIP and ERP. The draft tax levy being presented is
$25,640,518 or a 15.77% increase from 2026.
Investment in Public Safety Departments
The draft tax levy heavily invests in our Public Safety Departments, with 38.9% of the levy
going to support the Police and Fire Departments.
The Police Department is currently implementing a staffing study from January 7, 2025,
which recommended 38 total sworn police positions. The 2027 budget adds one
additional police officer for a total 35 sworn positions.
The Fire Department is implementing a staffing study from September 19, 2023, which
recommended a total of 20 full time fire positions. The 2027 budget is aided by FEMA’s
Staffing For Adequate Fire and Emergency Response (SAFER) Grant and includes 15
positions.

Staffing Reductions and Efficiencies
The 2027 Budget continues to include staffing reductions and efficiencies.
• The Special Projects and Initiatives Manager position was replaced with an HR
Technician in 2025, resulting in costs savings and providing needed support for
the City’s HR Division.
• The Youth Program Specialists position and Deputy City Clerk positions were
combined in 2026. The combination results in cost savings in both the General
and Depot Funds.
• The Planning and Economic Development Administrative Assistant was
reassigned to the Fire Department in 2026, fulfilling a need identified by the Fire
Department staffing study.
• The Depot continues to be managed by the Hopkins Center for the Arts, which
streamlines the facility rental process and provides additional space for Arts
Center Programming.
• The Fire Department sold a ladder truck in 2026 that was considered surplus.
The sale will provide $400,000 to reduce the levy in 2028-2020 and save over
$3,000,000 in 2029 when a new truck would have needed to be purchased.
• The Planning and Economic Development will save approximately $100,000 in
professional services by using internal staff and grant funded studies to complete
the comprehensive plan update, 2050 Hopkins Mosaic.
Reliance on Debt
The draft tax levy recommends the use of debt issuance to pay for long lasting capital
assets and equipment. Paying upfront can create an unnecessary burden for today’s
taxpayer, this does however obligate the City to pay interest costs. Based on the draft
tax levy the City is projected to issue up to $12 million in debt during 2027. This is
approximately $3.5 million more than projected during the April 21, 2026 City Council
Meeting. Projected debt includes:
Project
Central Park
Watermain Project
Public Works Parking Lot
Street Rehabilitation Project
Roofing at Fire, City Hall and
Pavilion
Equipment: Ice Resurfacer, Police
Rescue Vehicle & Dump Truck

Amount
Source of Repayment
$4,800,000 Storm Sewer User Fees, Park
Franchise Fees
$3,200,000 Water User Fees, Tax Levy
$1,200,000 Tax Levy, Storm Sewer User Fees
$550,000 Tax Levy
$790,000 Tax Levy
$785,000

Tax Levy

FUTURE ACTION
A budget information session will be held on Monday, August 10 from 5-6 PM at City Hall.
Details will be posted on the City’s website: https://www.hopkinsmn.com/466/CityBudget-Process.
A preliminary levy must be adopted by September 30th of each year. A Truth and Taxation
hearing is planned for Monday, November 30th. A final levy must be adopted by
December 31st.
Based on feedback, staff would plan to have additional meetings to discuss the budget in
the Summer and Fall.

City of Hopkins
Tax Levy
For the Year Ending December 31, 2027

First Draft
7/14/2026

Actual
FY2026

Draft
FY 2027

General Operations
General Fund
Capital Levy
Arts Center
Pavilion Fund
Equipment Replacement
Permanent Improvement
Parking
Total General Operations

17,224,277
262,500
380,000
431,000
100,000
18,397,777

18,990,028
412,500
395,000
455,400
1,077,564
290,000
21,620,492

10.25%
57.14%
3.95%
5.66%
100.00%
100.00%
-100.00%
17.52%

Debt Levy

3,750,127

4,020,026

7.20%

Total Levy

22,147,904

25,640,518

15.77%

Purpose

% Increase
(Decrease)

Tax Levy by Governmental Use
Purpose
Public Safety
General Government
Public Works
Parks and Recreation
Activity Center
Pavilion
Arts Center
Capital projects & debt
Total

Actual 2026
Tax Levy
9,432,095
3,318,167
2,484,135
1,658,315
431,565
431,000
380,000
4,012,627
22,147,904

Draft 2027
Tax Levy
Percent
10,240,346
39.9%
3,970,317
15.5%
2,459,537
9.6%
1,811,196
7.1%
508,632
2.0%
455,400
1.8%
395,000
1.5%
5,800,090
22.6%
25,640,518
100.0%

City of Hopkins
Tax Levy
For the Year Ending December 31, 2027

First Draft
7/14/2026

Department

Adopted 2026
Budget

Draft 2027
Budget

% Increase
(Decrease)

City Council

141,198

142,618

1.01%

Administrative Services

766,661

1,013,114

32.15%

Communications

230,894

218,391

-5.42%

Information Technology

766,859

1,018,418

32.80%

Finance

654,335

765,308

16.96%

Legal

270,000

285,000

5.56%

Municipal Building

390,991

409,209

4.66%

City Clerk

326,262

356,352

9.22%

Inspections

1,250,349

1,256,409

0.48%

Police

8,356,223

8,905,244

6.57%

Fire

3,158,241

3,478,412

10.14%

Public Works

4,467,380

4,652,974

4.15%

Recreation

287,077

287,572

0.17%

Activity Center

678,867

786,857

15.91%

Planning & Zoning

256,732

268,970

4.77%

Community Development

115,540

123,774

7.13%

Tuition Reimbursement

10,000

10,000

0.00%

Contingency

25,000

50,000

100.00%

-

18,000

100.00%

24,046,622

8.55%

Transfer to Depot
Total Expenditures

22,152,609

City of Hopkins
Tax Levy
For the Year Ending December 31, 2027

First Draft
7/14/2026

Adopted 2026
Budget

Draft 2027
Budget

% Increase
(Decrease)

Property Taxes

17,309,277

19,075,028

10.20%

Intergovernmental Revenue
Local Government Aid
Intergovernmental Revenue - State
Intergovernmental Revenue - Federal
Total Intergovernmental Revenue

1,091,250
890,000
591,642
2,572,892

1,095,753
915,000
591,642
2,602,395

1.15%

Licenses, Permits & Fines
Court Fines & Penalties
Building Permits & Inspections
Inspection Fines & Citations
City Clerk - Business Licenses
PD - Liquor, Animal Licenses & Penalties
Fire - Licenses & Permits
Public Works - Licenses & Permits
Planning & Zoning - Licenses & Permits
Total Licenses, Permits & Fines

176,000
647,000
3,000
11,000
121,225
4,500
1,215
4,000
967,940

176,000
668,000
3,000
12,100
121,225
5,000
78,500
4,000
1,067,825

10.32%

Charges for Service
Finance Department
Inspections
Police
Fire
Public Works
Activity Center
Planning & Zoning
Total Charges for Service

8,500
234,500
35,000
10,500
45,000
180,000
11,000
524,500

9,000
233,200
35,000
10,500
45,000
207,000
12,020
551,720

5.19%

Miscellaneous Revenue
Franchise Fees
Miscellaneous
Finance Department
Police
Fire
Public Works
Activity Center
Youth Intern Program
Total Miscellaneous

621,500
100,000
3,000
500
28,500
8,000
16,500
778,000

532,500
125,000
2,000
500
15,000
74,654
749,654

-3.64%

22,152,609

24,046,622

8.55%

Department

Total Revenues

City of Hopkins
2027 Operating Budget Request
Budget Request Title:
Department:
Division:
Contact Person:
Duration:
Type:
Item Description:

Item Justification:

Patrol Officer
Police Department
Chief Johnson

One-Time

On-Going

Additional Support for Existing Service or Program
The police department needs to continue to hire patrol officer staff to
meet the needs of the ever growing service demands in the city with
the ever growing population.

The police department hired the Axtell group in 2024 to conduct a
staffing needs assessment of the department going into the future.
They examined the calls for service, community engagement, light rail
transit implementation and continued increase in high density housing
projects. Study indicated we need to increase officer staff to 36.

Estimated Cost:
133,141
Estimated Revenue (if any):
Impact on Stakeholders:
(Individuals involved in our
work, businesses, residents,
visitors or other departments)
Impact on Personnel:
Hiring adequate staffing levels ensures the safety of our officers and
(Please describe any
allows for training, vacations and mental health breaks from the daily
personnel changes associated obligations of our duties. Adequate staffing also allows us to meet the
service needs of the community and allows for thorough follow through
with this request)
and continued community building intiaitives.
Impact on IT:
Minimal- set up email, etc.
(Please describe any
implementation requirements,
necessary software or ongoing
support)

How does the item relate to Providing the highest quality of service to our community is a key
the City' s Mission and Vision? componenet to this specific request. We need the personnel to
continue problem solving issues in the community while
simulateneously preventing and detering crime in our community. This
improves the quality of life for our residents.
How does the item relate to
the City' s Goals?

"Promote a resilient community" starts with hiring and retaining the
best staff. Employees provide the expertise to run the city to
accomplish all goals. Retaining staff comprises of having adequate
staffing levels to alleviate burnout, along with competitive wages and
additional career development opportunities.

Other Information or
Comments:

Staffing study recommended additional officer staffing with an increase
to 36. We are currently at 34. This takes significant time to recruit,
hire and train our officers and will not be fully integrated for over a
year. We need to continue funding these positions for the betterment
of our community.

City of Hopkins
2027 Operating Budget Request
Budget Request Title:
Department:
Division:
Contact Person:
Duration:
Type:
Item Description:

Item Justification:

Estimated Cost:
Estimated Revenue (if any):
Impact on Stakeholders:
(Individuals involved in our
work, businesses, residents,
visitors or other departments)

Staffing Request - IT Technician
Administration
IT
Casey Casella, Assistant City Manager
One-Time

On-Going

Additional Support for Existing Service or Program
The IT Division is requesting an additional full-time employee for 2027.
The division is currently at 4 FTE. This additional would bring the total
to 5.

Increased technology demands due to: Increase in staffing, devices
supported, departments are adopting technology faster than we can
keep up with all of the requests, compliance and regulation is
becoming stricter requiring more staff time, cybersecurity issues are
growing at an alarming rate
$88,350 - $117,300 annually
Projects are being delayed for stakeholders because there is
insufficient IT staffing to meet all requests. There are not enough IT
team members to properly maintain IT systems, handle requests for
support, and requests to implement new technology.

Impact on Personnel:
Increase admin by 1 FTE
(Please describe any
personnel changes associated
with this request)
Impact on IT:
New set up and software for 1 person - cube, desk phone, laptop,
(Please describe any
dock, monitors, monitor stand, mouse, keyboard, VPN token,
implementation requirements, Laserfishe, Springbrook, Microsoft office suite Adobe Pro.
necessary software or ongoing
support)

How does the item relate to The IT division is tasked with internal support, providing the
the City' s Mission and Vision? confidentialitiy, integrity, and availability of the city's systems so those
that directly work implementing the city's mission, vision, and goals are
able to carry out their important work.
How does the item relate to
the City' s Goals?

Other Information or
Comments:

The City has focused on employee recuritment and retention. Have
consistent access to IT resources impacts all employees. Maintaining
the quality of IT support to employees keeps the City's retention efforts
in line with our peer cities.
See attachement.

Supplemental Staffing Request – IT Technician
Overview
The Information Technology Department respectfully requests funding for one additional IT
Technician position.
The City currently relies on a four-person IT team to support all municipal technology operations,
including public safety systems, utility infrastructure, cybersecurity, end-user support, enterprise
applications, telecommunications, and strategic technology initiatives. As the City's dependence
on technology continues to grow, current staffing levels are no longer sufficient to maintain desired
service levels while also addressing cybersecurity, compliance, and project delivery requirements.
Current Environment
The IT Department supports:
•

280 desktop and laptop computers

•

More than 100 mobile phones and tablets

•

Over 100 surveillance cameras

•

Technology systems within police vehicles, fire apparatus, and public safety facilities

•

58 servers

•

15 firewalls and approximately 50 network switches

•

Multiple VPN environments

•

More than 100 vendor-supported applications and services

•

Critical infrastructure supporting public safety, water operations, financial systems, and
City services

Technology is now integrated into nearly every City operation, making reliable IT support essential
for service delivery.
Service Impact
Demand for IT services continues to increase while staffing remains unchanged.
Recent operational metrics show:
•

Help desk ticket volume increased by 15.19% over the past year

•

Average ticket resolution times are approximately one week

•

Technology projects are taking longer to complete due to limited staff availability

•

Departments are experiencing delays in technology deployments and improvements

•

Staff are increasingly focused on reactive support rather than proactive planning and
modernization

Without additional staffing, service levels are expected to continue to decline as technology
adoption grows.
Cybersecurity and Compliance Risk
The City faces increasing cybersecurity obligations and regulatory requirements.
The IT Department is responsible for supporting compliance efforts related to:
•

Criminal Justice Information Services (CJIS)

•

Payment Card Industry (PCI) requirements

•

Water system cybersecurity requirements

•

State and federal cybersecurity initiatives

•

Security awareness training and phishing simulations

•

Cyber insurance audits

•

Incident response planning and audit activities

Unlike many organizations of similar complexity, the City currently has no dedicated cybersecurity
position. Cybersecurity responsibilities are performed in addition to normal operational duties,
limiting the City's ability to proactively address risk.
Operational Resiliency
Current staffing levels provide limited redundancy.
When a staff member is absent due to vacation, illness, training, or emergency response, the
department's ability to deliver timely support is significantly reduced. This creates operational risk
and limits the City's ability to respond to both routine support requests and unexpected technology
incidents.
Recommendation
Adding a fourth IT Technician will improve service responsiveness, increase operational resiliency,
support growing technology demands, and allow the department to better address cybersecurity
and compliance responsibilities.
This position represents a proactive investment in maintaining reliable City services, protecting
critical systems, and supporting the technology needs of all departments.

City of Hopkins
2027 Operating Budget Request
Budget Request Title:
Department:
Division:
Contact Person:
Duration:
Type:
Item Description:

Citywide Job Classification and Market Compensation Study
Administration
HR
Casey Casella, Assistant City Manager
One-Time

On-Going

Additional Support for Existing Service or Program
Request to hire a consultant to conduct a comprehensive classification
and compensation study. This is a process by which employee
positions and payment is evaluated to ensure that jobs are
appropriately classified and pay is externally competitive and internally
equitable.

Item Justification:

State law requires public jurisdictions to use a job evaluation system in
order to determine the comparable work value to eliminate any genderbased wage inequities in compensation and submit reports every 3
years. Currently the City uses the DMB system through Gallagher
consulting.

Estimated Cost:
Estimated Revenue (if any):
Impact on Stakeholders:
(Individuals involved in our
work, businesses, residents,
visitors or other departments)

$60,000
None
Maintaining internal compliance with state law will avoid mandated
costly pay adjustments from the State. Maintaining externally
competitive wages will benefit employee recruitment and retention, in
turn having a quality workforce to service the public.

Impact on Personnel:
Positions may move pay scales. This could impact pay scales in turn
(Please describe any
impacting personnel budgets citywide.
personnel changes associated
with this request)
Impact on IT:
None
(Please describe any
implementation requirements,
necessary software or ongoing
support)

How does the item relate to "Creating a spirit of community where people enjoy exceptional
the City' s Mission and Vision? government services". The city should seek to be an employer of
choice that is internally equitable and externally competitive for
employee wages and benefits.
How does the item relate to
the City' s Goals?

"Promote a resilient community" starts with hiring and retaining the best
staff. Employees provide the expertise to run the city to accomplish all
goals.

Other Information or
Comments:

Due to the technical nature of compensation systems, this study cannot be done in
house. Industry best practice is to conduct a market study every 3-5 years (last
completed in Hopkins in 2023), and a classification system study every 5 years (last
completed in Hopkins in 2017). A compensation plan will deteriorate over time if it is not
maintained, especially in today's volatile job market.

City of Hopkins
2027 Operating Budget Request
Budget Request Title:
Department:
Division:
Contact Person:
Duration:
Type:
Item Description:

Community Events Fund
Admin
N/A
Casey Casella, Assistant City Manager
One-Time

On-Going

New Service or Program

This is a grant fund that will help support community-driven events that align
with the City's vision for equity and recognized cultural hertitage months.
Funds could be administered by the Community Engagement Task Force,
ensuring requests are engaging to the Hopkins community.

Item Justification:

This allows the City to support more community-driven events which celebrate the many
backgrounds within Hopkins without requiring as much Staff support. The City has received
requests from community groups for financial support for these types of events. The recent
community survey showed the importance of community events and festivals, with 80% of
respondents citing these events as important to their inclusion in Hopkins and 75% wanting more of
these events. Additionally, 88% of residents said Hopkins should prioritize working with community
members in planning events, something this item will directly respond to.

Estimated Cost:
Estimated Revenue (if any):
Impact on Stakeholders:
(Individuals involved in our
work, businesses, residents,
visitors or other departments)

$20,000
N/A
The fund will support more community events. After doing continued
outreach about community engagement desires with residents, creating
this fund will build trust with residents by showing clear nest steps are
being taken as a result of their feedback.

Impact on Personnel:
This may reduce staff time needed to plan city community events. It
(Please describe any
may also create opportunities for staff to gain valuable feedback on city
personnel changes associated policies/initiatives through event collaborations.
with this request)
Impact on IT:
No impact.
(Please describe any
implementation requirements,
necessary software or ongoing
support)

How does the item relate to This item meets the City's mission by inspiring, educating, involving, and
the City' s Mission and Vision? communicating about the different cultures and communities within Hopkins.

This item helps the city meet its vision statement of creating a spirit of
community where all people feel safe, welcome, and like diversity is celebrated
by supporting the creation of events that celebrate all community members.

How does the item relate to
the City' s Goals?

This item addresses goal one of the strategic plan. Having more resident-led
events will promote Hopkins as a destination and enhance city events. It
addresses all goal statements of goal three, Take It To Them. Having the
funds be allocated by a resident board makes this item especially strong in
goal three.

Other Information or
Comments:

Staff would develop a policy and process for applying for funds. The
Community Engagement Task Force could review proposals and vote
to administer funds.