ITEM 1 Budget Kickoff meetingY
OtCITY QF
a
MINNESOTA
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: May 29, 2018
SUBJECT: Budget Kickoff Meeting
On Tuesday, Council and staff will begin the 2019 budgeting discussions. This meeting is intended
to focus on the big -picture and not specific departmental budget requests. I have developed an
outline of discussion topics below, however; the most important aspect of this meeting is to provide
the opportunity for the Council to set priorities, set expectations and to provide direction to staff for
preparation of the draft budget.
Council Roundtable
This is an opportunity for the Council to express their current view on City services and programs.
This would also be the time for the Council to share any comments they have received from the
public regarding City services or programs.
Priorities
Please use this opportunity to outline your priorities for the 2019 General fund budget.
Expectations
Please use this opportunity to outline your expectations for the 2019 General fund budget.
Assumptions
The most significant assumption within the General fund budgeting process is those in relation to
personnel. It is important for this assumption to be clearly defined at the beginning of the budgeting
process. In past years, assumptions for personnel costs have included a combination of informal
salary surveys obtained by City staff, inflation indices, and employment cost indices.
To begin the discussion, I have attached two regional indices from the Bureau of Labor Statistics.
The City's pay plan for full-time employees includes 21 grades, each with 9 steps. The percentage
increase for each step within a pay grade is 2.75%. Employees who reach the highest step within
their pay grade do not move to the next grade. There are 6 employees at the City who are currently
at the top of their respective pay grades, with 8 employees projected at their maximums for 2019.
City of Otsego 113400 90"' Street NE, Otsego, N N 553301 Tel. (763) 441-4414 Fax (763) 441-9163
2019 Staffing
As mentioned above, personnel costs are the single largest component of the General fund budget as
they made up nearly 31% of the 2017 budget. This portion of the meeting will provide the
opportunity for City management to review their respective department staffing plans for 2019. It
will be important for the City Council to provide direction to staff for preparation of the draft
budget.
Fund Balance Policy — Calculation of Transfer
The City's fund balance policy outlines that the ending fund balance in the General Fund should be
45% of the subsequent years budget. The policy further outlines that any balance more than the
defined 45% minimum, can be transferred to a capital reserve fund at the Council's discretion. A
calculation is attached with this memorandum for review at this meeting.
Calendar
Attached with this memorandum is a calendar that outlines the budgeting process as it has been
completed during the past two years. This process can be kept the same, expanded upon, or even
reduced at the discretion of the Council.
Next Meetings
June 11 — At this meeting, staff and Council will begin to review the proposed property tax levies
and cash flows for the capital project funds.
June 25 — At this meeting, staff and Council will begin to review the proposed property tax levies
and cash flows for the special revenue and debt service funds.
Materials Attached for Discussion
1) Bureau of Labor Statistics Indices
a. Consumer Price Index — Midwest Region
b. Employment Cost Index — Minneapolis Metropolitan Area
2) Budget Calendar
3) Calculation of Transfer in Accordance With Fund Balance Policy
City of Otsego 113400 90"' Street NE, Otsego, N N 553301 Tel. (763) 441-4414 Fax (763) 441-9163
N EWS RELEASE Q�Q�4� SNT oFl��P
BUREAU OF LABOR STATISTICS
U. S. D E P A R T M E N T O F L A B O R��
C BLS ��rrATESO�P
For Release: Thursday, May 10, 2018 18-784-KAN
MOUNTAIN -PLAINS INFORMATION OFFICE: Kansas City, Mo.
Technical information: (816) 285-7000 BLSInfoKansasCity@bls.gov www.bls.gov/regions/mountain-plains
Media contact: (816) 285-7000
Consumer Price Index, Midwest Region — April 2018
Prices in the Midwest up 0.4 percent in April and 1.8 percent higher over the year
The Consumer Price Index for All Urban Consumers (CPI -U) in the Midwest rose 0.4 percent in April, the
U.S. Bureau of Labor Statistics reported today. Higher prices for gasoline (5.4 percent) led the increase.
Overall, energy costs were up 2.5 percent and prices for food rose 0.5 percent. The index for all items less
food and energy increased 0.2 percent over the month. (Data in this report are not seasonally adjusted.
Accordingly, month-to-month changes may reflect the impact of seasonal influences.)
Chart 1. Over -the -year percent change in CPI -U, blidwest region, April 2015—April 2018
Percent change
3.0 1
2.0
1.0
0.0
-1.0
-20
..::dl items
All items less food and energy
Apr Jul Oct Jan .Apr Jul Oct Jan Apr Jul Oct Jan Apr
1 '16 '17 '1-9
Source: U.S. Bureau a f Labnr Statistics.
The CPI -U for the Midwest advanced 1.8 percent from April 2017 to April 2018. (See chart 1 and table A.)
The energy index, which includes motor fuel and household fuels, rose 5.3 percent and food prices
increased 1.3 percent. Excluding food and energy, the CPI -U was up 1.6 percent over the year. (See table 1.)
Food
Food prices in the Midwest rose 0.5 percent in April after registering little change (-0.1 percent) in March.
Costs for food at home were up 0.9 percent over the month following a decrease of 0.4 percent in the prior
month. Prices for food away from home changed little (0.1 percent) in April after rising 0.2 percent in
March.
From April 2017 to April 2018, the index for food was 1.3 percent higher. Prices for food away from home
rose 2.1 percent and prices for food at home were up 0.8 percent.
Energy
The energy index turned up 2.5 percent in April following a decline of 0.6 percent in March. Higher costs
for gasoline (5.4 percent) were largely responsible for the increase. Costs for utility (piped) gas service and
electricity declined over the month, down 2.0 and 0.3 percent, respectively.
Energy costs advanced 5.3 percent from April 2017 to April 2O18 led by a 10.6 -percent increase in gasoline
prices. Costs for utility (piped) gas service were 2.0 percent lower over the year and electricity prices
declined 0.3 percent.
All items less food and energy
The index for all items less food and energy for the Midwest was up 0.2 percent in April after rising 0.3
percent in each of the prior two months. Higher costs for shelter (0.3 percent) had the largest upward impact
on the index. Prices for other goods and services (1.8 percent) were also among those that contributed to the
rise.
The index for all items less food and energy was up 1.6 percent from April 2O17 to April 2O18. Higher costs
for shelter (3.1 percent) led the over -the -year increase.
The Midwest Consumer Price Index for All Urban Consumers (CPI -U) stood at 233.913 in April 2018. A
typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $233.91 in
April 2018.
CPI -W
In April, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W) was
228.153. The CPI -W increased 0.5 percent in April and rose 2.0 percent over the year.
Table A. Midwest region CPI-lJ 1 -month and 12 -month percent changes, all items index, not seasonally
adjusted
Month
2014
2015
2016
2017
2018
12-
12-
12-
12-
12-
1 -month
1 -month
1 -month
1 -month
1 -month
month
month
month
month
month
January ..............................................
0.5
1.4
-0.6
-0.3
0.3
0.8
0.7
2.2
0.6
1.6
February ............................................
0.6
0.9
0.3
-0.5
0.0
0.4
0.2
2.4
0.2
1.7
March ................................................
0.9
1.5
0.6
-0.9
0.6
0.5
0.1
1.9
0.2
1.8
April ...................................................
0.3
1.9
0.1
-1.1
0.4
0.8
0.4
1.8
0.4
1.8
May ....................................................
0.2
1.6
0.4
-0.8
0.4
0.8
0.0
1.4
June ...................................................
0.5
1.7
0.5
-0.7
0.6
0.8
0.0
0.9
July ....................................................
-0.3
1.8
0.0
-0.5
-0.5
0.4
0.0
1.3
August ...............................................
-0.2
1.6
0.0
-0.3
0.1
0.6
0.3
1.5
September .........................................
0.1
1.6
-0.3
-0.8
0.2
1.1
0.3
1.5
October ..............................................
-0.5
1.6
-0.1
-0.3
-0.1
1.0
-0.2
1.5
November ..........................................
-0.6
1.2
-0.5
-0.2
-0.3
1.21
0.2
1.9
Table A. Midwest region CPI -U 1 -month and 12 -month percent changes, all items index, not seasonally
adjusted - Continued
Month
2014
2015
2016
2017
2018
12-
12-
12-
12-
12-
1 -month
1 -month
1 -month
1 -month
1 -month
month
month
month
month
month
December ..........................................
-0.7
0.7
-0.6
0.0
0.1
1.8
-0.2
1.7
The May 2018 Consumer Price Index for the Midwest region is scheduled to be released on Tuesday,
June 12, 2018.
Technical Note
The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market
basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1)
a CPI for All Urban Consumers (CPI -U) which covers approximately 93 percent of the total population and
(2) a CPI for Urban Wage Earners and Clerical Workers (CPI -W) which covers approximately 29 percent of
the total population. The CPI -U includes, in addition to wage earners and clerical workers, groups such as
professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed,
and retirees and others not in the labor force.
The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and
dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each
month, prices are collected in 75 urban areas across the country from about 5,000 housing units and
approximately 22,000 retail establishments—department stores, supermarkets, hospitals, filling stations, and
other types of stores and service establishments. All taxes directly associated with the purchase and use of
items are included in the index.
The index measures price changes from a designated reference date (1982-84) that equals 100.0. An
increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as
follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in
1982-84 to $11.65. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the
BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at
www.bls.gov/opub/hom/pdf/homchl7.pdf.
In calculating the index, price changes for the various items in each location are averaged together with
weights that represent their importance in the spending of the appropriate population group. Local data are
then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local
area index is subject to substantially more sampling and other measurement error than the national index. In
addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater
volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do
not measure differences in the level of prices between cities; they only measure the average change in
prices for each area since the base period.
The Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri,
Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
Information in this release will be made available to sensory impaired individuals upon request. Voice
phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
Table 1. Consumer Price Index for All Urban Consumers (CPI -U): Indexes and percent changes for selected
periods, Midwest Region, (1982-84=100 unless otherwise noted) (not seasonally adjusted)
Expenditure category
Indexes
Percent change from
Feb.
Mar.
Apr.
Apr.
Feb.
Mar.
2018
2018
2018
2017
2018
2018
All items...........................................................
232.512
232.931
233.913
1.8
0.6
0.4
All items (December 1977 = 100) ....................
378.309
378.992
380.589
Food and beverages ....................................
243.603
243.262
244.408
1.4
0.3
0.5
Food .........................................................
242.865
242.510
243.762
1.3
0.4
0.5
Food at home .......................................
226.810
225.918
227.910
0.8
0.5
0.9
Cereals and bakery products ............
258.523
259.331
259.678
0.4
0.1
Meats, poultry, fish, and eggs............
246.250
246.510
250.928
1.9
1.8
Dairy and related products ................
197.690
197.449
197.707
0.0
0.1
Fruits and vegetables ........................
270.372
265.639
268.056
-0.9
0.9
Nonalcoholic beverages and
160.943
160.072
161.413
0.3
0.8
beverage materials ............................
Other food at home ...........................
197.900
197.301
198.865
0.5
0.8
Food away from home ..........................
269.935
270.384
270.538
2.1
0.2
0.1
Alcoholic beverages .................................
251.636
251.480
251.166
2.1
-0.2
-0.1
Housing........................................................
224.834
225.275
225.719
2.4
0.4
0.2
Shelter ......................................................
267.342
268.376
269.145
3.1
0.7
0.3
Rent of primary residence(1)................
267.484
268.124
268.476
3.1
0.4
0.1
Owners' equivalent rent of residences(1
271.579
272.471
273.041
3.0
0.5
0.2
) (2) ........................................................
Owners' equivalent rent of primary
271.543
272.425
273.006
3.0
0.5
0.2
residence(1)(2)..................................
Fuels and utilities ......................................
222.393
219.534
218.312
0.3
-1.8
-0.6
Household energy ................................
181.728
178.513
177.081
-0.4
-2.6
-0.8
Energy services(1) ............................
188.250
184.940
183.380
-0.8
-2.6
-0.8
Electricity(1)...................................
200.577
199.173
198.609
-0.3
-1.0
-0.3
Utility (piped) gas service(l) ..........
156.381
150.229
147.174
-2.0
-5.9
-2.0
Household furnishings and operations.....
113.552
114.176
114.652
0.2
1.0
0.4
Apparel.........................................................
119.680
120.121
119.830
-1.0
0.1
-0.2
Transportation ..............................................
199.926
201.054
203.479
2.8
1.8
1.2
Private transportation ...............................
194.848
195.963
198.175
3.3
1.7
1.1
New and used motor vehicles(3)..........
96.185
96.982
96.692
-0.7
0.5
-0.3
New vehicles .....................................
136.898
136.939
137.142
-1.6
0.2
0.1
New cars and trucks(3)(4).............
96.702
96.718
96.864
-1.6
0.2
0.2
New cars(4)...................................
132.825
132.986
133.314
-2.2
0.4
0.2
Used cars and trucks .........................
137.587
139.658
138.984
-1.4
1.0
-0.5
Motor fuel .............................................
226.835
228.003
240.215
10.7
5.9
5.4
Gasoline (all types) ............................
225.196
226.458
238.799
10.6
6.0
5.4
Gasoline, unleaded regular(4).......
219.143
220.390
232.741
10.8
6.2
5.6
Gasoline, unleaded midgrade(4)
259.166
260.756
272.681
9.5
5.2
4.6
(5) ..................................................
Gasoline, unleaded premium(4)....
248.450
249.876
260.495
9.3
4.8
4.2
Motor vehicle insurance(6)...................
738.214
738.086
733.338
-0.7
-0.6
Medical care .................................................
481.849
482.275
482.487
0.7
0.1
0.0
Medical care commodities ........................
390.831
392.852
391.669
0.6
0.2
-0.3
Medical care services ...............................
512.320
512.205
512.890
0.7
0.1
0.1
Professional services ...........................
417.223
417.257
417.494
0.6
0.1
0.1
Recreation(3)................................................
122.405
122.187
122.365
0.6
0.0
0.1
Education and communication(3).................
137.778
137.461
137.377
0.4
-0.3
-0.1
Note: See footnotes at end of table.
Table 1. Consumer Price Index for All Urban Consumers (CPI -U): Indexes and percent changes for selected
periods, Midwest Region, (1982-84=100 unless otherwise noted) (not seasonally adjusted) - Continued
Expenditure category
Indexes
Percent change from
Feb.
Mar.
Apr.
Apr.
Feb.
Mar.
2018
2018
2018
2017
2018
2018
Tuition, other school fees, and child
1,183.479
1,179.298
1,179.248
-0.4
0.0
care(6)......................................................
Other goods and services ............................
414.035
418.270
425.978
3.0
2.9
1.8
Commodity and service group
Commodities ................................................
178.223
178.676
179.925
1.1
1.0
0.7
Commodities less food and beverages ....
146.553
147.284
148.520
0.9
1.3
0.8
Nondurables less food and beverages.
194.097
194.970
197.739
2.9
1.9
1.4
Durables ...............................................
101.384
101.954
102.027
-1.7
0.6
0.1
Services........................................................
288.465
288.847
289.539
2.3
0.4
0.2
Special aggregate indexes
All items less shelter .....................................
222.264
222.475
223.537
1.3
0.6
0.5
All items less medical care ...........................
220.709
221.129
222.147
2.0
0.7
0.5
Commodities less food .................................
149.821
150.532
151.735
1.0
1.3
0.8
Nondurables .................................................
218.578
218.889
220.919
2.1
1.1
0.9
Nondurables less food ..................................
197.132
197.946
200.540
2.9
1.7
1.3
Services less rent of shelter(2).....................
320.163
319.822
320.438
1.5
0.1
0.2
Services less medical care services .............
271.769
272.188
272.881
2.5
0.4
0.3
Energy..........................................................
202.097
200.936
205.870
5.3
1.9
2.5
All items less energy ....................................
238.392
238.978
239.569
1.6
0.5
0.2
All items less food and energy .................
238.302
239.056
239.531
1.6
0.5
0.2
Footnotes
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means
estimator.
(2) Indexes on a December 1982=100 base.
(3) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.
(6) Indexes on a December 1977=100 base.
Note: Index applies to a month as a whole, not to any specific date.
N EWS RELEASE Q�Q�4� V, To
BUREAU OF LABOR STATISTICS
U. S. D E P A R T M E N T O F L A 6 O R��
BLS ��srATESO�P
For Release: Friday, May 11, 2018 18 -536 -CHI
MIDWEST INFORMATION OFFICE: Chicago, III.
Technical information: (312) 353-1880 BLSInfoChicago@bls.gov www.bis.gov/regions/midwest
Media contact: (312) 353-1138
Changing Compensation Costs in the Minneapolis Metropolitan Area — March
2018
Total compensation costs for private industry workers increased 3.5 percent in the Minneapolis -St. Paul -St.
Cloud, Minn.-Wis. metropolitan area for the year ended in March 2018, the U.S. Bureau of Labor Statistics
reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that a year earlier,
Minneapolis experienced a gain of 2.9 percent in total compensation costs. Locally, wages and salaries, the
largest component of total compensation costs, rose 3.9 percent over the 12 -month period ended March
2018. Nationwide, total compensation costs rose 2.8 percent and wages and salaries rose 2.9 percent over
the same period. (See chart 1 and table 1.)
Chart 1. Twelve-month percent changes in the Employment Cost Index, private industry workers,
United States and the Minneapolis area, not seasonally adjusted, blarch 2016—March 2018
Percent change
5.3
4.0
3.0
2.0
1.0
0.0
i United 'States total compensation
Minneapolis total compensation
-1.0
Mar Jun Sep Dec Mar Jun Sep Dec Mar
1u '17 '18
Scurce: U.S. Bureau ofLaborStatistics.
Percent change
Z. L.
4.0
3.0
2.0
1.0
0.0
Jun Sep Dec riar Jun Sep Dec Mar
'17 '13
Minneapolis is 1 of 15 metropolitan areas in the United States, and 1 of 3 areas in the Midwest region of the
country, for which locality compensation cost data are now available. Among these 15 largest areas, over -
the -year percentage increases in total compensation costs ranged from 7.2 percent in Seattle -Tacoma -
Olympia, Wash. to 1.1 percent in Atlanta -Sandy Springs -Gainesville, Ga. -Ala. in March 2018. For wages
and salaries, San Jose -San Francisco -Oakland, Calif. registered the largest annual gain (4.9 percent) among
the 15 areas, while wages in Atlanta and Boston -Worcester -Manchester, Mass.-N.H. registered the smallest
annual gains (1.7 percent each). (See chart 2.)
Chart 2. Twelve-month percent change in the Employment Cost Index, private industry workers, United States and localities, not
seasonally adjusted, lularch 2018
Percent change
8.0
■Total compensation
7.5
7-0 ❑4"usages and salaries
65 —
6.0
5.5 4 9
5-0 44
4.5
40 3.9 4 0 3.6
'��
3.2
3.0 28 2.92 9 2.8 2.8 4 2? 2 8 3.1 2' 2 7 2 5 2.8
25 2q `22-2 213
—E-1 F
2.0
1.5 1 1
1-0
0.5
0-0
i f
United Atlanta Boston Chicago Dallas Detroit Houston Las Miami Minne- New Phila- Phoenix San Seattle Wash-
States Angeles apolis York delphia Jose ington
Source: U.S. Bureau ofLabarStatatics.
Minneapolis' annual increase in total compensation costs in March 2018, at 3.5 percent, compared to gains
of 2.9 and 2.6 percent, respectively, in Chicago -Naperville -Michigan City, Ill.-Ind.-Wis. and Detroit -
Warren -Flint, Mich., the two other metropolitan areas in the Midwest. Minneapolis' 3.9 percent increase in
wages and salaries over this 12 -month period compared to advances of 2.9 percent in Chicago and 2.8
percent in Detroit. (See table 2.)
Locality compensation costs are part of the national Employment Cost Index (ECI), which measures
quarterly changes in compensation costs, which include wages, salaries and employer costs for employee
benefits. In addition to the 15 locality estimates provided in this release, ECI data for the nation, 4
geographical regions, and 9 geographical divisions are available. (Geographical definitions for the
metropolitan areas mentioned in this release are included in the Technical Note.)
In addition to the geographic data, a comprehensive national report is available that provides data by
industry, occupational group, and union status, as well as for both private and state and local government
employees. The release is available on the Internet at www.bls.gov/ncs/ect/home.htm. Current and historical
information from other Bureau programs may be accessed via our regional homepage at www.bls.gov/
regions/midwest.
The Employment Cost Index for June 2018 is scheduled to be released on Tuesday, July 31, 2018.
Technical Note
The Employment Cost Index (ECI) measures the change in the cost of labor, free from the influence of
employment shifts among occupations and industries. The compensation series includes changes in wages
and salaries and employer costs for employee benefits.
Wages and salaries are defined as straight -time average hourly earnings or, for workers not paid on an
hourly basis, straight -time earnings divided by the corresponding hours. Straight -time wage and salary rates
are total earnings before payroll deductions, excluding premium pay for overtime, work on weekends and
2
holidays, and shift differentials. Production bonuses, incentive earnings, commission payments, and cost -of -
living adjustments are included in straight -time earnings, whereas nonproduction bonuses (such as
Christmas or year-end bonuses) are excluded. Also excluded are such items as payments -in-kind, free room
and board, and tips.
Based on available resources and the existing ECI sample, it was determined that estimates would be
published for 15 metropolitan areas. Since the ECI sample sizes by area are directly related to area
employment, the areas with the largest private industry employment as of the year 2000 were selected. For
each of these areas, 12 -month percent changes and associated standard errors were computed for the periods
since December 2006.
The metropolitan area definitions of the 15 published localities are listed below.
• Atlanta -Sandy Springs -Gainesville, Ga. -Ala. Combined Statistical Area (CSA) includes Barrow,
Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette,
Forsyth, Fulton, Gwinnett, Hall, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton,
Paulding, Pickens, Pike, Polk, Rockdale, Spalding, Troup, Upson, and Walton Counties in Georgia;
and Chambers County in Alabama.
• Boston -Worcester -Manchester, Mass.-N.H. CSA includes Essex, Middlesex, Norfolk, Plymouth,
Suffolk, and Worcester Counties in Massachusetts; and Belknap, Hillsborough, Merrimack,
Rockingham, and Strafford Counties in New Hampshire.
• Chicago -Naperville -Michigan City, Ill.-Ind.-Wis. CSA includes Cook, DeKalb, DuPage, Grundy,
Kane, Kankakee, Kendall, Lake, McHenry, and Will Counties in Illinois; Jasper, Lake, LaPorte,
Newton, and Porter Counties in Indiana; and Kenosha County in Wisconsin.
• Dallas -Fort Worth, Texas CSA includes Collin, Cooke, Dallas, Delta, Denton, Ellis, Henderson,
Hood, Hunt, Johnson, Kaufman, Palo Pinto, Parker, Rockwall, Somervell, Tarrant, and Wise Counties
in Texas.
• Detroit -Warren -Flint, Mich. CSA includes Genesee, Lapeer, Livingston, Macomb, Monroe,
Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.
• Houston -Baytown -Huntsville, Texas CSA includes Austin, Brazoria, Chambers, Fort Bend,
Galveston, Harris, Liberty, Matagorda, Montgomery, San Jacinto, Walker, and Waller Counties in
Texas.
• Los Angeles -Long Beach -Riverside, Calif. CSA includes Los Angeles, Orange, Riverside, San
Bernardino, and Ventura Counties in California.
• Miami -Fort Lauderdale -Pompano Beach, Fla. Metropolitan Statistical Area (MSA) includes
Broward, Miami -Dade, and Palm Beach Counties in Florida.
• Minneapolis -St. Paul -St. Cloud, Minn.-Wis. CSA includes Anoka, Benton, Carver, Chisago,
Dakota, Goodhue, Hennepin, Isanti, McLeod, Ramsey, Rice, Scott, Sherburne, Stearns, Washington,
and Wright Counties in Minnesota; and Pierce and St. Croix Counties in Wisconsin.
• New York -Newark -Bridgeport, N.Y.-N.J.-Conn.-Pa. CSA includes Bronx, Dutchess, Kings,
Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Ulster, and Westchester
Counties in New York; Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris,
Ocean, Passaic, Somerset, Sussex, and Union Counties in New Jersey; Fairfield, Litchfield, and New
Haven Counties in Connecticut; and Pike County in Pennsylvania.
• Philadelphia -Camden -Vineland, Pa.-N.J.-Del.-Md. CSA includes Bucks, Chester, Delaware,
Montgomery, and Philadelphia Counties in Pennsylvania; Burlington, Camden, Cumberland,
Gloucester, and Salem Counties in New Jersey; New Castle County in Delaware; and Cecil County in
Maryland.
• Phoenix -Mesa -Scottsdale, Ariz. MSA includes Maricopa and Pinal Counties in Arizona.
• San Jose -San Francisco -Oakland, Calif. CSA includes Alameda, Contra Costa, Marin, Napa, San
Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz, Sonoma, and Solano Counties in
California.
• Seattle -Tacoma -Olympia, Wash. CSA includes Island, King, Kitsap, Mason, Pierce, Snohomish,
and Thurston Counties in Washington.
• Washington -Baltimore -Northern Virginia, D.C.-Md.-Va.-W.Va. CSA includes the District of
Columbia; Baltimore City and Anne Arundel, Baltimore; Calvert, Carroll, Charles, Frederick,
Harford, Howard, Montgomery, Prince George's, Queen Anne's, and St. Mary's Counties in Maryland;
Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, Manassas Park, and Winchester Cities
and Arlington, Clarke, Fairfax, Fauquier, Frederick, Loudoun, Prince William, Spotsylvania, Stafford,
and Warren Counties in Virginia; and Hampshire and Jefferson Counties in West Virginia.
Definitions of the four geographic regions of the country are noted below.
• Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, and Vermont.
• South: Alabama, Arkansas, Delaware, the District of Columbia, Florida, Georgia, Kentucky,
Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas,
Virginia, and West Virginia.
• Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota,
Ohio, South Dakota, and Wisconsin.
• West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico,
Oregon, Utah, Washington, and Wyoming.
Information in this release will be made available to sensory impaired individuals upon request. Voice
phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
Table 1. Employment Cost Index for total compensation and for wages and salaries, private industry
workers, United States, Midwest region, and the Minneapolis area, not seasonally adjusted
Total compensation Wages and salaries
12 -month percent changes for period ended- 12 -month percent changes for period ended -
Area
March
June
Sep.
Dec. March
June
Sep.
Dec.
United States
2014 ....................................................
1.7
2.0
2.3
2.3 1.7
1.9
2.3
2.2
2015 ....................................................
2.8
1.9
1.9
1.9 2.8
2.2
2.1
2.1
2016 ....................................................
1.8
2.4
2.3
2.2 2.0
2.6
2.4
2.3
2017 ....................................................
2.3
2.4
2.5
2.6 2.6
2.4
2.6
2.8
2018 ....................................................
2.8
2.9
Midwest
2014 ....................................................
1.7
2.1
2.2
2.1 1.6
2.0
2.0
1.7
2015 ....................................................
2.4
1.6
1.7
1.8 2.0
1.9
2.1
2.3
2016 ....................................................
1.8
2.6
2.6
2.6 2.3
2.7
2.8
2.9
2017 ....................................................
2.8
2.3
2.2
2.2 3.2
2.4
2.2
2.2
2018 ....................................................
2.4
2.4
Minneapolis -St. Paul -St. Cloud
2014 ....................................................
1.6
1.8
2.3
2.3 1.4
2.0
2.5
2.6
2015 ....................................................
2.3
2.9
2.4
4.1 2.3
3.2
2.4
4.9
2016 ....................................................
1.9
1.3
2.9
0.7 1.7
1.0
2.8
-0.2
2017 ....................................................
2.9
3.0
1.1
1.4 2.9
3.0
1.0
1.1
2018 ....................................................
3.5
3.9
Table 2. Employment Cost Index for total compensation and for wages and salaries, private industry
workers, United States, geographical regions, and localities, not seasonally adjusted
Total compensation Wages and salaries
12 -month percent changes for period ended- 12 -month percent changes for period ended -
Area
Mar. 2017
Dec. 2017
Mar. 2018 Mar. 2017
Dec. 2017
Mar. 2018
United States ...................................................
2.3
2.6
2.8 2.6
2.8
2.9
Northeast......................................................
2.3
2.6
2.7 2.2
2.7
2.9
Boston -Worcester -Manchester .................
2.6
2.4
2.0 3.0
2.2
1.7
New York -Newark -Bridgeport ...................
2.9
2.4
2.8 3.2
2.4
3.1
Philadelphia -Camden -Vineland ................
3.0
2.7
2.7 3.0
2.4
2.7
South............................................................
1.6
2.4
2.6 1.8
2.7
2.8
Atlanta -Sandy Springs -Gainesville...........
2.8
1.4
1.1 3.0
1.5
1.7
Dallas -Fort Worth .....................................
2.2
2.4
2.2 2.8
3.2
2.2
Houston -Baytown -Huntsville ....................
1.6
1.7
2.1 2.2
2.0
2.3
Miami -Fort Lauderdale -Pompano Beach .
3.2
2.2
2.4 3.1
2.3
2.7
Washington -Baltimore -Northern Virginia..
2.3
2.2
2.5 2.8
3.0
2.8
Midwest........................................................
2.8
2.2
2.4 3.2
2.2
2.4
Chicago -Naperville -Michigan City ............
2.5
2.4
2.9 2.7
2.6
2.9
Detroit -Warren -Flint ..................................
2.9
2.8
2.6 3.5
3.2
2.8
Minneapolis -St. Paul -St. Cloud ................
2.9
1.4
3.5 2.9
1.1
3.9
West.............................................................
2.9
3.3
3.6 3.2
3.3
3.7
Los Angeles -Long Beach -Riverside .........
2.5
3.7
3.2 2.7
3.3
3.1
Phoenix -Mesa -Scottsdale ........................
2.8
2.7
3.6 3.1
3.1
4.0
San Jose -San Francisco -Oakland............
3.0
3.4
4.4 3.3
3.6
4.9
Seattle -Tacoma -Olympia ..........................
1 2.4
6.91
7.21 3.6
3.41
3.6
City of Otsego
Fund Balance Policy
General Fund Transfer
2018
1^
2018 General Fund Budget
Minimum Fund Balance
2017 Ending Fund Balance
Excess
Calculation
5,378,034 Resolution 2017-100
Comments
2,420,115 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.
3,890,645 Per Audited Financial Statements
(185,066) Less: Fund Balance from Insurance Reserve Fund (#204) - Grouped with General for Financial Reporting
(20,191) Less: Fund Balance from Educational Programming Fund (#215) - Grouped with General for Financial Reporting
(114,997) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Funds actually have alredy been expended.
(202,200) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Future funds from land for resale proceeds.
3,368,191 Fund Balance Available (Unassigned)
948,076 DRAFT - PRESENTED TO COUNCIL ON 5-29-2018
X:\Budget\2019\Calculation of Fund Balance Policy Transfers 2018
City of Otsego
2019 Budget Process
Proposed Meeting Schedule
t
October -November TBD TBD Public Utility Operating Budgets Direction to Staff
October -November TBD TBD Capital Improvement Plan Direction to Staff
Adopt Final Property Tax Levy
Adopt Final Budgets
December 10 Regular Agenda During Regular Meeting Truth -In -Taxation Presenation & Public Input Process Adopte Capital Improvement Plan
Meeting
Meeting
Meeting
Actions
Date
Type
Time
Objectives
Needed
April 23
Regular Agenda
During Regular Meeting
Distribute Proposed Budget Calendar
None
May 29
Special
After Regular Meeting
Budget Kickoff (Process / Goals / Objectives / Issues)
Direction to Staff
June 11
Special
After Regular Meeting
Capital Improvement Fund Tax Levies
Direction to Staff
June 25
Special
After Regular Meeting
Debt Service & Tax Abatement Fund Tax Levies
Direction to Staff
July 23
Regular Agenda
During Regular Meeting
Distribute Draft General Fund Budget
None
July 30
Special
6PM
General Fund Revenue & Department Expense Review
Direction to Staff
August 13
Special
After Regular Meeting
General Fund Department Expense Review
Direction to Staff
August 27
Special
After Regular Meeting
General Fund Department Expense Review
Direction to Staff
September 10
Special
After Regular Meeting
Follow Up & General Fund Summary Review
Direction to Staff
September 24
Regular Agenda
During Regular Meeting
Action Items Only
Adopt Preliminary Tax Levy
October -November TBD TBD Public Utility Operating Budgets Direction to Staff
October -November TBD TBD Capital Improvement Plan Direction to Staff
Adopt Final Property Tax Levy
Adopt Final Budgets
December 10 Regular Agenda During Regular Meeting Truth -In -Taxation Presenation & Public Input Process Adopte Capital Improvement Plan