Business Services

In accordance with state law and school district policy, the District has built a fund balance, which is comparable to our neighboring school districts. However, the District must be cautious and take care to preserve that fund balance. The fund balance is a savings account we must hang on to in order to preserve the quality of education that Hopkins provides its students in the face of the very real potential for sudden, unexpected decreases in revenue from the state. With so many uncertainties concerning school funding, financial planning is key. We need to balance available resources against our needs. This includes identifying budget adjustments that will enable us to continue providing an excellence education for our students while ensuring that we sustain our financial stability.

Our department has made it our priority to stay transparent and open about our budget use and planning.

The auditors, working with the Director of Business Services, produce an executive audit summary, annual comprehensive financial report (ACFR) (previously CAFR), and student activity audit after thoroughly examining all our school district’s financial records.

Financial Statements and Supplemental Information

These reports are completed after examining all financial statements under the school district’s management. The auditors present the financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the district as of June 30, as well as the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparison for General Fund and the Major Special Revenue Funds of the year then ended, in conformity with U.S. generally accepted accounting principles.

The District has received the 2019 Certificate of Excellence (COE) Award from the Association of School Business Officials (ASBO) International. The COE Award for financial reporting recognizes excellence for a school entity's Comprehensive Annual Financial Report (CAFR), promoting high-quality financial reporting to the community.

ACFRs are reviewed by professionals from governmental accounting and auditing in the fields of consulting, certified public accounting and school system financial management.

FY2025 Audit Progress

The audit for the 2025 Fiscal Year is in progress. Currently, work is in Phase I, with teams working to get audit-ready by completing reconciliations, schedules, support documentation, and reviewing internally. Phase I is expected to be complete by May 2026, when Phase II, focused on auditor testing will begin.

Audit Documents

The audit documents are available as downloads in this section. If the PDFs are not accessible with your screen reader or other accessibility device, please contact the Business Services Department at 952-988-4032.

Budget Documents

The budget documents are available as downloads in this section. If the PDFs are not accessible with your screen reader or other accessibility device, please contact the Business Services Department at 952-988-4032.

Elementary and secondary education in Minnesota is financed through a combination of state-collected taxes (primarily income and sales taxes) and locally collected property taxes. Revenue for school districts is received in three major categories:

State Education Finance Appropriations

• General Education Aid — The largest share of the education finance appropriation, general education aid, is intended to provide the basic financial support for the education program.
• The Categorical Aids — Categorical revenue formulas are generally used to meet costs that vary significantly between school districts (i.e., special education) or promote certain types of programs (i.e., career and technical aid, adult basic education aid).

State Paid Property Tax Credits

Property tax credits reduce the amount of property taxes paid. To make up for this reduction, the state pays the difference between what was levied in property taxes and what is actually received in property taxes to school districts and other taxing districts.

Property Tax Levies

Property tax levies are usually determined as part of a formula that includes state aid. The largest share of the levy is from voter-approved levies—the excess operating referendum and debt service levies.

Hopkins Public Schools Certified a $4 million Levy Increase for 2026 Pay 2027

Hopkins Public Schools held a public hearing on the amount of property taxes it is proposing to collect to pay for the costs of services the schools will provide in 2027. We are committed to using our levy authority to meet the needs of present and future students and to only levy for what our schools need. We approved this increase in the school district levy for property taxes payable in 2027. The increased levy would help us manage class sizes and invest in the operations, maintenance, and updating of our schools.

The Citizens Financial Advisory Committee (CFAC) meets several times during the year to provide advice, direction, and support to the Hopkins School Board and senior administration in evaluating the overall fiscal condition of our school district. The CFAC, through the Director of Business Services, provides a report covering the items pertaining to the upcoming budget that the committee has discussed.

CFAC Recommendations 2023-24

Assumptions and Recommendations for FY24 Budget to the School Board:

• State per student funding in the projection years of FY24 (3.0%) and FY25 (2.0%) is based on available information
• Projected enrollment is decreasing in FY23 and projected to be flat in FY24 and for the foreseeable future
• 3.0% annual increase in FY24 and FY25 in total salaries and wages (62% of total expenditures)
• Fringe benefits to increase by 3.0% (42% of total compensation) for FY24
• Purchased Services, Utilities, Transportation and Supplies to increase at 7.0% on an annual basis.
• General Fund Unassigned Fund balance based on unaudited FY22 Financial statements is sitting at 10%

NOTE: If this PDF is not accessible with your screen reader or other accessibility device, please contact the Business Services Department at 952-988-4001.

CFAC Annual Financial Report for the Budget Year Ending June 30, 2027CFAC Annual Financial Report for the Budget Year Ending June 30, 2024

CFAC Annual Financial Report for the Budget Year Ending June 30, 2023

The State of Minnesota directs school district to establish different sets of financial accounts or funds to manage school operations. The broad categories of funds are Operating Funds and Non-Operating Funds.