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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.