ITEM 1
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: November 27, 2017
SUBJECT: Budget Meeting #9
On Monday, Council and staff will wrap-up the review process of the 2018 Property Tax Levy,
2018 Operating Budgets and the 2018-2027 Capital Improvement Plan.
It should be noted that inclusion of a certain item within the Capital Improvement Plan does not
commit final approval by the City Council. Rather, it directs City staff to plan towards and gather
necessary information for an educated final approval on each respective item. Each individual item
is planned, researched and brought back to the City Council for final approval when the respective
purchase is ready to move forward.
I have developed an outline of discussion topics below.
Parks & Recreation CIP
The City has established numerous funds to account for the revenues and expenditures associated
with the maintenance, replacement, and construction of the City’s park and recreation amenities.
Parks and Recreation Director Demant will be present at the meeting to review the Capital
Improvement Plan items with the City Council.
Materials for Review and Discussion
1) Fund #202 – Trails Management
2) Fund #203 – Park Development
3) Fund #205 – Parks Capital Equipment
4) Fund #208 – Community Facilities
5) Parks Capital Improvement Plan – Comprehensive Project List by Funding Source
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
Public Safety CIP
The City has established Fund #214 – Fire Reserve. The purpose of this fund is to accumulate funds
that will be used to assist in financing the costs associated with the future construction of fire station
facilities and the capital equipment that will be housed within said facilities.
The Capital Improvement Plan for Fund #214 currently only includes one item, which is a fire
station study. The City Council directed staff to prepare an RFP at a meeting on October 30, 2017.
The City Council reviewed the draft RFP at the Council meeting on November 27, 2017.
Completion of such a study would assist in developing a more comprehensive CIP as it relates to
fire protection within Otsego.
City staff will be working with representatives from the State Fire Marshal’s office on a grant
application. If awarded such a grant, the cost of such a study would be significantly less than the
cost estimate included within the CIP.
Materials for Review and Discussion
1) Fund #214 – Fire Reserve
Capital Improvements Revolving CIP
The City has established Fund #414 – Capital Improvements Revolving. The purpose of this fund is
to accumulate resources that may be assigned at the discretion of the City Council towards capital
improvements that do not have currently designated funding sources.
Materials for Review and Discussion
1) Fund #414 – Capital Improvements Revolving
General Fund Budget
The City Council approved a preliminary General Fund budget of $5,381,021 in September. At this
time, there has been only one change made to the budget. This change reduced the budget by $1,240
to match the final safety and training contract with MMUA.
At the December 11, 2017 meeting, the City Council will need to adopt the Final 2018 General
Fund budget. In preparation for that meeting, staff is looking for final direction on a few items:
- The current budget includes a 2.50% increase to the Pay Plan.
- The Contingency budget amount is currently $60,000.
Materials for Review and Discussion
1) General Fund – Revenue and Expenditure Summary
2) General Fund – Department Expenditure Summary
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
Property Tax Levy
The City Council approved a preliminary property tax levy of $6,106,302 in September. At this
time, there has been only one change made to the property tax levy. This change reduced the levy
by $1,000 to account for a decrease of budgeted expenditures within the General fund.
At the December 11, 2017 meeting, the City Council will need to adopt the Final 2018 Property tax
levy. In preparation for that meeting, staff is looking for final direction on the following item:
- Capital Improvements Levy Amount
Materials for Review and Discussion
1) 2018 Property Tax Levy Calculations
2) Projected Tax Levies to 2023
December 11, 2017 Meeting
The City will be holding the required Truth-in-Taxation presentation at the December 11, 2017
Council meeting. This meeting is an opportunity for the public to ask questions regarding the
budget and tax levy. After the presentation and public input opportunity, the City Council will need
to approve a number of items:
- Final Property Tax Levy for Taxes Payable 2018
- Final General Fund Budget for 2018
- Final 2018 Budgets for:
o Public Utility Funds
o Debt Service Funds
o Special Revenue Funds
- Capital Improvement Plan for 2018-2027
There are currently no additional meetings scheduled for review of the property tax levy, budgets or
capital improvement plan. Staff would be seeking direction from the City Council on whether any
additional meetings are necessary, or if the City Council concurs with what has been presented and
reviewed thus far.