ITEM 1 Budget Meeting #2Y
OtCITY QF
a
MINNESOTA
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: June 11, 2018
SUBJECT: Budget Meeting #2
On Monday, Council and staff will continue the 2019 budgeting discussions. I have developed an
outline of discussion topics below. Please note that the information presented during this meeting is
for discussion only and that nothing is final or set in stone at this point of the process. Staff would
only be asking for Council direction on the items below in order to effectively and efficiently move
the budgeting process forward.
Property Tax Lew — General Information
At this time of the year, much of the information being used is estimates. Based upon the
information currently available from Wright County, the City's tax capacity for the 2019 tax levy
will increase approximately 7%.
The City's tax rate for the 2018 tax levy is 36.556. With the current assumptions for increased tax
capacity, if the City were to levy the same amount, the tax rate would be estimated to be 34.070.
The City would be able to increase the levy approximately $445 thousand more for payable 2019
while still maintaining the current tax rate.
Attached with this memorandum is a chart comparing the Otsego tax rate with those of surrounding
communities in Anoka, Hennepin, Sherburne and Wright Counties.
If the City Council has any specific comments on the City's tax rate, please let staff know of any
specific direction at this meeting.
City of Otsego 113400 90"' Street NE, Otsego, N N 553301 Tel. (763) 441-4414 Fax (763) 441-9163
Property Tax Lew — Capital Reserves
A short narrative for each component of the capital reserve levy is as follows:
Pavement Management
This fund accounts for nearly all of the street maintenance and renewal projects in the City. The
2018-2027 Capital Improvement Plan included average annual maintenance projects of $872
thousand and average annual renewal projects of $691 thousand. The funding for these projects
comes primarily from property tax levies and special assessments; however, additional funding
sources include local government aid and municipal state aid maintenance dollars.
Staff will review source and use cash flow projections with the City Council and further discuss
recommendations on how to continue to provide adequate funding for all future street maintenance
and renewal projects.
Staff will also review the City's Public Improvement Assessment Policy and some issues that may
arise with future street renewal projects.
Trails Management
This fund accounts for the ongoing costs associated with the maintenance of the City's trail system
as well as the parking lots within the City's park system. Annual costs typically include crack filling
and seal coating. The park system continues to grow each year as new housing continues and as the
City builds new parks and trails.
Based on current source and use cash flow projections, Staff is recommending a $32,000 property
tax levy for 2019 in order to complete the currently scheduled maintenance projects.
Parks Equipment Replacement
This fund accounts for the accumulation of resources to provide for future replacement of major
park capital items, including but not limited to shelters and playground equipment. The funding for
these future expenditures solely comes from a property tax levy.
Based on current source and use cash flow projections, Staff is recommending a $58,000 property
tax levy for 2019 in order to continue building reserves for the future replacement of parks
equipment.
Capital Equipment Revolving
This fund accounts for the expenditure of funds associated with the City's vehicle and equipment
fleet. The 2018-2027 Capital Improvement Plan included average annual expenditures of $435
thousand. These expenditures are evaluated annually by staff and the City Council during the
budget process and again in the year of purchase. The funding for these vehicle and equipment
purchases comes from property tax levies or from utility operating revenues when applicable.
Staff will review source and use cash flow projections with the City Council and further discuss
recommendations on how to continue to provide adequate funding for the City's vehicle and
equipment fleet.
City of Otsego 113400 90"' Street NE, Otsego, N N 553301 Tel. (763) 441-4414 Fax (763) 441-9163
Fire Station
This fund accounts for the accumulation of resources for future costs associated with the
construction of a fire station within the City of Otsego. The current cash balance along with the
taxes levied for collection in 2018 project to be $2,390,785.
Staff will review source and use cash flow projections and further discuss with the City Council as
to what the preferred approach is regarding funding this Fire Station reserve.
Storm Water
This levy is for the costs associated with the ongoing review, monitoring, repair, maintenance and
improvement of the storm water systems established prior to current requirements under the Clean
Water Act. The funding for these expenditures solely comes from a property tax levy.
Based on current source and use cash flow projections, Staff is recommending a $30,000 property
tax levy for 2019.
Capital Improvements
This fund accounts for the accumulation of resources to finance future capital improvements. The
fund does not have a specific ongoing revenue source. In 2018, the City Council levied $282,500
and assigned those resources to be used towards the City's local share of the roadway reconstruction
of CSAH 38 and for the construction of a City trail along this roadway. This County project is
expected to begin in August 2018.
Staff will review source and use cash flow projections and further discuss with the City Council as
to what the preferred approach is regarding funding this reserve fund.
Property Tax Lew Summary
Staff will review two summary reports with the City Council:
1) The first will compare the preliminary 2019 levy amounts with those dating back to 2015 so
that trends can be identified.
2) The second will provide a projection of any existing property tax levies 10 years into the
future.
Next Meetings
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.
The review of the General fund budget is scheduled to begin on July 30. There is typically a quick
review of the latest information on the property tax levy at each of the General fund budget
meetings.
Materials Attached for Discussion
1) Tax Rate Comparison Chart
2) Cash Flow Projections
3) Tax Levy Summaries
a. Payable 2019
b. Future Projections
City of Otsego 113400 90"' Street NE, Otsego, N N 553301 Tel. (763) 441-4414 Fax (763) 441-9163
Tax Rate Comparison
60.000
50.000
40.000
30.000
20.000
10.000
� 2018 X2017
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City of Otsego
Pavement Management Fund
Cash Flow Summary
Revised: June 6, 2018 33.33% 12.50% 11.11% 0.00% 10.00% 0.00% 9.09% 0.00% 8.33% 0.00%
Forecast Projection - Capital Improvement Plan
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Revenues
1,905,894
2,062,519
2,216,107
838,891
1,350,398
1,509,374
1,059,967
1,648,440
1,993,090
2,360,424
2,131,508
Property Taxes
$ 600,000 $
800,000 $
900,000 $
1,000,000 $
1,000,000 $
1,100,000 $
1,100,000 $
1,200,000 $
1,200,000 $
1,300,000 $
1,300,000
Intergovernmental (MSA)
218,569
219,662
220,760
221,864
222,973
224,088
225,209
226,335
227,466
228,604
229,747
Intergovernmental (LGA)
143,430
62,131
-
-
-
-
-
-
-
-
-
Special Assessments (Levied)
24,546
23,938
23,329
22,721
22,113
21,505
20,896
20,288
14,589
9,456
-
Special Assessments (Future)
-
105,996
110,445
139,824
135,946
132,599
181,908
197,752
209,513
247,501
252,655
Debt Issuance
1,541,760
-
-
-
-
-
-
-
-
-
-
Total
2,528,305
1,211,727
1,254,534
1,384,409
1,381,032
1,478,192
1,528,013
1,644,375
1,651,568
1,785,561
1,782,402
Expenses
Capital Outlay (CIP-Maintenance)
829,920
658,484
1,202,843
622,151
627,737
469,456
622,869
1,036,622
818,701
1,827,774
871,656
Capital Outlay (CIP-Renewal)
1,541,760
399,655
1,428,907
250,751
594,319
1,458,143
316,671
263,103
465,533
186,703
690,555
Total
2,371,680
1,058,139
2,631,750
872,902
1,222,056
1,927,599
939,540
1,299,725
1,284,234
2,014,477
1,562,210
Cash Balance - Beginning
1,905,894
2,062,519
2,216,107
838,891
1,350,398
1,509,374
1,059,967
1,648,440
1,993,090
2,360,424
2,131,508
Revenues
2,528,305
1,211,727
1,254,534
1,384,409
1,381,032
1,478,192
1,528,013
1,644,375
1,651,568
1,785,561
1,782,402
Expenditures
(2,371,680)
(1,058,139)
(2,631,750)
(872,902)
(1,222,056)
(1,927,599)
(939,540)
(1,299,725)
(1,284,234)
(2,014,477)
(1,562,210)
Cash Balance - Ending
$ 2,062,519 $
2,216,107 $
838,891 $
1,350,398 $
1,509,374 $
1,059,967 $
1,648,440 $
1,993,090 $
2,360,424 $
2,131,508 $
2,351,699
Cash Balance - % of Next Year Capital 195% 84% 96% 111% 78% 113% 127% 155% 117% 136%
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Pavement Management Fund (201)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
� CIP - Maintenance CIP - Renewal Revenues
1
Comments
MSA Maintenance (1/2% Annual Inflation)
LGA (Subject to Legislative Actions)
Existing levied assessments
Assessments on future projects
2018-2027 CIP + 2028 = AVERAGE
2018-2027 CIP + 2028 = AVERAGE
Average = $1,562,210
X:\Budget\2019\Cash Flows\Capital Funds 201 -Pavement Management
Revised: June 6, 2018
City of Otsego
Trail Management Fund
Cash Flow Summary
15.38% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00% 4.76% 4.55% 4.35% 4.17%
2
60,000
50,000
40,000
30,000
20,000
10,000
Trail Management Fund (202)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
� Expenses Revenues Cash Balance - Ending
X:\Budget\2019\Cash Flows\Capital Funds 202 -Trail Management
Forecast I
Projection - Capital Improvement Plan
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Comments
Revenues
Property Taxes
$ 30,000 $
32,000 $
34,000 $
36,000 $
38,000
$ 40,000 $
42,000 $
44,000 $
46,000 $
48,000 $
50,000
Annual Increase of $2,000
Total
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
48,000
50,000
Expenses
Capital Outlay
33,827
-
-
-
-
-
-
-
-
-
-
QUOTE APPROVED 5/14/2018
Capital Outlay (CIP)
-
31,500
33,500
35,500
37,500
39,500
41,500
43,500
45,500
47,500
49,500
DRAFT 2019-2028 CIP
Total
33,827
31,500
33,500
35,500
37,500
39,500
41,500
43,500
45,500
47,500
49,500
Cash Balance - Beginning
7,590
3,763
4,263
4,763
5,263
5,763
6,263
6,763
7,263
7,763
8,263
Revenues
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
48,000
50,000
Expenditures
(33,827)
(31,500)
(33,500)
(35,500)
(37,500)
(39,500)
(41,500)
(43,500)
(45,500)
(47,500)
(49,500)
Cash Balance - Ending
$ 3,763 $
4,263 $
4,763 $
5,263 $
5,763
$ 6,263 $
6,763 $
7,263 $
7,763 $
8,263 $
8,763
60,000
50,000
40,000
30,000
20,000
10,000
Trail Management Fund (202)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
� Expenses Revenues Cash Balance - Ending
X:\Budget\2019\Cash Flows\Capital Funds 202 -Trail Management
Revised: June 6, 2018
City of Otsego
Park Equipment Fund
Cash Flow Summary
1.82% 3.57% 3.45% 3.33% 3.23% 3.13% 3.03% 2.94% 2.86% 2.78% 2.70%
3
X:\Budget\2019\Cash Flows\Capital Funds 205 -Park Equipment
Forecast I
1,000,000
-
800,000
-
Projection - Capital Improvement Plan
-
400,000
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Comments
Revenues
(400,000)
Expenses -+--Cash Balance - Ending
Property Taxes
$ 56,000 $
58,000 $
60,000 $
62,000 $
64,000
$ 66,000 $
68,000 $
70,000 $
72,000 $
74,000 $
76,000
Annual Increase of $2,000
Total
56,000
58,000
60,000
62,000
64,000
66,000
68,000
70,000
72,000
74,000
76,000
Expenses
Capital Outlay
8,985
-
-
-
-
-
-
-
-
-
-
QUOTE APPROVED 4/23/2018
Capital Outlay (CIP)
-
-
-
-
-
315,000
-
-
-
-
819,930
DRAFT 2018-2027 CIP
Total
8,985
-
-
-
-
315,000
-
-
-
-
819,930
Cash Balance - Beginning
250,263
297,278
355,278
415,278
477,278
541,278
292,278
360,278
430,278
502,278
576,278
Revenues
56,000
58,000
60,000
62,000
64,000
66,000
68,000
70,000
72,000
74,000
76,000
Expenditures
(8,985)
-
-
-
-
(315,000)
-
-
-
-
(819,930)
Cash Balance - Ending
$ 297,278 $
355,278 $
415,278 $
477,278 $
541,278
$ 292,278 $
360,278 $
430,278 $
502,278 $
576,278 $
(167,652)
X:\Budget\2019\Cash Flows\Capital Funds 205 -Park Equipment
Park Equipment Fund (205)
1,000,000
-
800,000
-
600,000
-
400,000
200,000
2018
2019 2020 2021 2022 2023 2024 2025 2026 2027 28
(200,000)
(400,000)
Expenses -+--Cash Balance - Ending
X:\Budget\2019\Cash Flows\Capital Funds 205 -Park Equipment
City of Otsego 4
Capital Equipment Revolving Fund
Cash Flow Summary
4'
Revised: June 6, 2018 10.54% 7.69% 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00% 4.76%
Forecast Projection - Capital Improvement Plan
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Comments
Revenues
Property Taxes $ 235,200 $ 260,000 $ 280,000 $ 300,000 $ 320,000 $ 340,000 $ 360,000 $ 380,000 $ 400,000 $ 420,000 $ 440,000 Annual Increase of $20,000
Sales of Fixed Assets (Est.) 84,000 - - - - - - - - - -
Utility Fund Contributions 115,474 - 47,000 - 35,000 - 400,000 48,000 51,240 -
Transfers In 29,000 - - - - - - - - - - Otsego Creek Fund - Chipper
Total 463,674 260,000 327,000 300,000 320,000 375,000 360,000 780,000 448,000 471,240 440,000
Expenses
Capital Outlay (Fleet CIP)
584,531
447,700
368,100
454,600
382,320
376,600
384,095
554,800
667,290
130,408
435,044 2018-2027 CIP + 2028 = AVERAGE
Total
584,531
447,700
368,100
454,600
382,320
376,600
384,095
554,800
667,290
130,408
435,044 Average = $435k
Cash Balance - Beginning
624,018
503,161
315,461
274,361
119,761
57,441
55,841
31,746
256,946
37,656
378,488
Revenues
463,674
260,000
327,000
300,000
320,000
375,000
360,000
780,000
448,000
471,240
440,000
Expenditures
(584,531)
(447,700)
(368,100)
(454,600)
(382,320)
(376,600)
(384,095)
(554,800)
(667,290)
(130,408)
(435,044)
Cash Balance - Ending $
503,161 $
315,461 $
274,361 $
119,761 $
57,441 $
55,841 $
31,746 $
256,946 $
37,656 $
378,488 $
383,444
Cash Balance - % of Next Year Capital
112%
86%
60%
31%
15%
15%
6%
39%
29%
87%
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
Capital Equipment Revolving Fund (206)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
� Expenses Revenues +Cash Balance - Ending
X:\Budget\2019\Cash Flows\Capital Funds 206 -Capital Equipment
City of Otsego
Fire Reserves Fund
Cash Flow Summary
Revised: June 6, 2018
Revenues
Property Taxes
Property Taxes (Debt Service)
Intergovernmental
Debt Issuance
Total
Expenses
Fire Study
Other Charges & Services
Capital Outlay (Equipment)
Capital Outlay (Building)
Debt Service
Total
Cash Balance - Beginning
Revenues
Expenditures
Cash Balance - Ending
Forecast I Projection - Capital Improvement Plan
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Comments
$ 160,000 $ 170,000 $ 180,000 $ 190,000 $ - $ - $ - $ - $ - $ - $ - Annual Increase of $10,000
- - - - 455,831 455,831 455,831 455,831 455,831 455,831 455,831 Levy at 105% of Debt Service
20,235 - - - - - - - - - - State Fire Marshal's Office Grant
- - - 5,000,000 - - - - - - - 15 Year Bond @ 3.5% Interest
180,235 170,000 180,000 5,190,000 455,831 455,831 455,831 455,831 455,831 455,831 455,831
21,300 - - - - - - Per Approved Proposal - Beacon GIS
3,984 - - - - - Study Data Gathering
- - - 1,500,000 - - - No Basis to Support these Numbers
- 100,000 6,000,000 - - - No Basis to Support these Numbers
- - - - 434,125 434,125 434,125 434,125 434,125 434,125 434,125 15 Year Bond @ 3.5% Interest
25,284 - 100,000 7,500,000 434,125 434,125 434,125 434,125 434,125 434,125 434,125
2,235,834
2,390,785 2,560,785
2,640,785
330,785
352,491
374,198
395,904
417,610
439,316
461,023
180,235
170,000 180,000
5,190,000
455,831
455,831
455,831
455,831
455,831
455,831
455,831
(25,284)
- (100,000)
(7,500,000)
(434,125)
(434,125)
(434,125)
(434,125)
(434,125)
(434,125)
(434,125)
$ 2,390,785 $
2,560,785 $ 2,640,785 $
330,785 $
352,491 $
374,198 $
395,904 $
417,610 $
439,316 $
461,023 $
482,729
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Fire Reserve Fund (214)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
� Expenses Revenues Cash Balance - Ending
5
X:\Budget\2019\Cash Flows\Capital Funds 214 -Fire Reserve
City of Otsego
Storm Water Utility Fund (Out District)
Cash Flow Summary
w
Revised: June 6, 2018
140,000
120,000
100,000
80,000
60,000
40,000
20,000
(20,000)
Storm Water Utility - Out District(220)
� Expenses Revenues Cash Balance - Ending
r
XABudget\2019\Cash Flows\Utility Funds 220-Storm(Out)
15.38%
6.67%
6.25%
5.88%
5.56%
Actual
Forecast
Projected
2017
2018
2019
2020
2021
2022
2023
Comments
Revenues
Property Taxes
$ 25,000 $
26,000 $
30,000 $
32,000 $
34,000 $
36,000 $
38,000
Annual Increase of $2,000
Investment Interest
861
-
-
-
-
-
-
Total
25,861
26,000
30,000
32,000
34,000
36,000
38,000
Expenses
Supplies
-
20,500
21,000
21,500
22,000
22,500
23,000
Annual Increase of $500
Engineering
30,968
5,500
6,000
6,500
7,000
7,500
8,000
Annual Increase of $500
Other Charges & Services
2,235
-
-
-
-
-
-
Capital Outlay
81,453
-
-
-
-
-
-
Total
114,656
26,000
27,000
28,000
29,000
30,000
31,000
Cash Balance - Beginning
77,752
70,410
(2,980)
20
4,020
9,020
15,020
Balance Sheet Effects
81,453
(73,390)
Revenues
25,861
26,000
30,000
32,000
34,000
36,000
38,000
Expenditures
(114,656)
(26,000)
(27,000)
(28,000)
(29,000)
(30,000)
(31,000)
Cash Balance - Ending
$ 70,410 $
(2,980) $
20 $
4,020 $
9,020 $
15,020 $
22,020
140,000
120,000
100,000
80,000
60,000
40,000
20,000
(20,000)
Storm Water Utility - Out District(220)
� Expenses Revenues Cash Balance - Ending
r
XABudget\2019\Cash Flows\Utility Funds 220-Storm(Out)
Revised: June 6, 2018
City of Otsego
Capital Improvements Fund
Cash Flow Summary
Revenues
Property Taxes
Special Assessments (Levied)
Transfers In
Total
Expenses
Capital Outlay (IT CIP)
Capital Outlay (Buildings CIP)
Capital Outlay (Streets CIP)
Capital Outlay (Parks CIP)
Development Incentives
Total
Cash Balance - Beginning
Revenues
Expenditures
Cash Balance - Ending
Forecast I Projection - Capital Improvement Plan
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
7
Comments
$ 282,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
50,847 49,094 47,342 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915 Existing levied assessments
948,076 - - - - - - - - - - -
1,281,423 49,094 47,342 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915
100,000 - 50,000 -
- - - Council Chambers/ Servers
4,975 - - - -
- - - Install Tile in Hallway
655,064 - 39,984 - -
- - - CSAH 38 Local Share / Signals
197,528 35,000 - - -
- - - CSAH 38 Trail / Carrick's Lanscaping
465,026 - - - -
- - - Guardian Angels - Waterfront East
1,422,593 35,000 89,984 - -
- - -
1,467,466 1,326,296 1,340,390 1,297,748 1,324,746 1,351,014 1,376,552 1,401,360 1,425,438 1,448, 786 1,454,620 1,459, 696
1,281,423 49,094 47,342 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915
(1,422,593) (35,000) (89,984) - - - - - - - - -
$ 1,326,296 $ 1,340,390 $ 1,297,748 $ 1,324,746 $ 1,351,014 $ 1,376,552 $ 1,401,360 $ 1,425,438 $ 1,448,786 $ 1,454,620 $ 1,459,696 $ 1,464,611
X:\Budget\2019\Cash Flows\Capital Funds 414 -Capital Imp.
City of Otsego
Property Tax Levy Calculations
Payable 2019
Revised: June 6, 2018
Levy Description 2015 2016
General Revenues 3,319,000 3,529,352
Tax Abatements 23,000 88,814
2017 2018
3,766,000 3,986,000
81,385 65,546
Preliminary (6-11-2018)
2019 Change Change Comment
4,185,300 199,300 5.00% Placeholder Only - No Basis to Support
65,437 (109)
Debt Service
2016
2017
2018
2019
lian Appraised Value
Authority
Series 2010D & Series 2011A
200,000
225,000
225,000
215,000
205,000
(10,000)
Series 2010B
410,000
415,000
430,000
440,000
450,000
10,000
Series 2018A, Mississippi Shores
-
-
-
-
75,834
75,834
Series 2018A, Kadler Avenue
-
-
-
-
13,445
13,445
Sub -total
610,000
640,000
655,000
655,000
744,279
89,279 13.63%
729
720
6.35%
;ht County708
Capital Reserves
797
812
14.69%
)ol District
656
721
Pavement Management
320,000
339,200
475,960
600,000
800,000
200,000
Trails Management
25,000
25,250
26,000
30,000
32,000
2,000
Parks Equipment
53,000
54,590
55,000
56,000
58,000
2,000
Capital Equipment Revolving
160,000
168,000
235,200
242,256
260,000
17,744
Fire Reserve
145,000
150,000
150,000
160,000
170,000
10,000
Storm Water
25,000
25,000
25,000
26,000
30,000
4,000
Capital Improvements
-
-
160,200
282,500
-
(282,500)
Sub -total
728,000
762,040
1,127,360
1,396,756
1,350,000
(46,756) 3.35%
Grand Total
4,680,000
5,020,206
5,629,745
6,103,302
6,345,016
241,714
Tax Capacity
11,358,615
13,238,424
14,873,116
16,783,003
18,004,252
Estimated at 1% of County Provided Value
Growth (%)
16.55%
12.35%
12.84%
7.28%
Net Tax Capacity
11,358,615
13,238,424
14,872,821
16,696,008
17,914,231
Estimated at 99.50% of Tax Capacity
Growth (%)
16.55%
12.35%
12.26%
7.30%
Tax Rate
41.202
37.921
37.852
36.556
35.419
Taxing
2016
2017
2018
2019
lian Appraised Value
Authority
Final Tax Rate
Final Tax Rate
Final Tax Rate
Estimate
Change
City of Otsego
37.921
37.852
36.556
35.419
-6.43%
Wright County
39.970
39.599
39.946
39.946
0.88%
School District
39.266
36.659
36.137
36.137
-1.42%
School District - RMV
19.441
19.373
19.422
19.422
0.25%
)escription
2017
2018
2019
Change
lian Appraised Value
198,300
217,206
220,572
11.23%
: MV Exclusion
(19,393)
(17,691)
(17,389)
able Market Value
178,907
199,515
203,183
13.57%
Capacity
11789
1,995
2,032
2017
2018
2019
Taxing
Estimated
Estimated
Estimated
Authority
Tax
Tax
Tax
Change
of Otsego
677
729
720
6.35%
;ht County708
711
797
812
14.69%
)ol District
656
721
734
11.89%
)ol District - RMV
384
422
428
11.46%
d
2,425
2,669
2,694
11.09%
uallncrease
25
Description
2017
2018
2019
Change
Median Sale Price Paid
198,850
234,420
239,601
20.49%
Less: MV Exclusion
(19,344)
(16,142)
(15,676)
Taxable Market Value
179,507
218,278
223,925
24.74%
Tax Capacity
11795
2,183
2,239
2017
2018
2019
Taxing
Estimated
Estimated
Estimated
Authority
Tax
Tax
Tax
Change
City of Otsego
679
798
793
16.79%
Wright County
711
872
894
25.74%
School District
658
789
809
22.95%
School District - RMV
385
455
465
20.78%
Total
2,433
2,914
2,961
21.70%
Annual Increase
47
The City rate is calculated by the Finance
Director. County and School District tax rates
were obtained from Wright County, and
represent the tax rate from their respective
preliminary levies and are NOT FINAL.
Source = Wright County Assessor
These are best estimates calculated by the
Finance Director based upon information
available at the time of presentation. These
should only be considered as estimates, and
should NOT be considered final.
Source = Wright County Assessor
These are best estimates calculated by the
Finance Director based upon information
available at the time of presentation. These
should only be considered as estimates, and
should NOT be considered final.
X:\Budget\2019\Property Taxes\Tax Levy Calculations 6-11
City of Otsego
Property Tax Levy Calculations
Future Tax Levies
Revised: June 6, 2018
Levy Description 2018
General Revenues 3,986,000
Tax Abatements 65,546
Debt Service
Preliminary Projections
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Comments
4,185,300 4,436,418 4,613,875 4,798,430 5,086,335 5,289,789 5,501,380 5,831,463 6,064,722 6,307,311 6,685,749 Alternating Increases - 1 Year @ 6%/ 2 @ 4%
65,437 63,292 29,926 - - - - - - - - Current Abatements Only
Series 2010D & Series 2011A
215,000
205,000
195,000
195,000
400,000
400,000
350,000
350,000
325,000
325,000
325,000
26,517,438 Annual Capacity Increase of 4%
Series 2010B
440,000
450,000
460,000
460,000
-
-
-
-
-
-
-
4.00%
Series 2018A, Mississippi Shores
-
75,834
79,597
84,727
84,421
89,218
93,742
97,982
96,679
100,462
103,936
-
Series 2018A, Kadler Avenue
13,445
12,369
11,240
10,085
14,128
12,742
11,298
9,797
13,487
11,723
9,896
NEW - Fire Station
-
-
-
455,831
455,831
455,831
455,831
455,831
455,831
455,831
455,831
NEW - PW Expansion
-
-
-
-
-
-
-
-
NEW - City Hall
NEW - Police Station
-
-
-
-
-
-
-
-
-
-
-
-
Sub -total
655,000
744,279
746,966
750,967
950,337
959,177
912,315
915,111
887,307
894,780
896,490
465,727
Capital Reserves
Pavement Management
600,000
800,000
900,000
1,000,000
1,000,000
1,100,000
1,100,000
1,200,000
1,200,000
1,300,000
1,300,000
1,400,000
Trails Management
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
48,000
50,000
52,000
Parks Equipment
56,000
58,000
60,000
62,000
64,000
66,000
68,000
70,000
72,000
74,000
76,000
78,000
Capital Equipment Revolving
242,256
260,000
280,000
300,000
320,000
340,000
360,000
380,000
400,000
420,000
440,000
460,000
Fire Reserve
160,000
170,000
180,000
190,000
-
-
-
-
-
-
-
-
Storm Water
26,000
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
48,000
50,000
Capital Improvements
282,500
-
-
-
-
-
-
-
-
-
-
-
Sub -total
1,396,756
1,350,000
1,486,000
1,622,000
1,458,000
1,584,000
1,610,000
1,736,000
1,762,000
1,888,000
1,914,000
2,040,000
Grand Total
6,103,302
6,345,016
6,732,676
7,016,768
7,206,767
7,629,512
7,812,104
8,152,491
8,480,770
8,847,502
9,117,801
9,191,476
Debt Expires = 2028
Debt Expires = 2021
Debt Expires = 2029
Debt Expires = 2034
$5M Bond - 15 Years at 3.50% Interest
Potential item when looking out this far.
Potential item when looking out this far.
Potential item when looking out this far.
Increase $2,000 Annually
Increase $2,000 Annually
Increase $20,000 Annually
Increase $10,000 Annually Until Debt Issued
Increase $2,000 Annually
Net Tax Capacity
16,696,008
17,914,231
18,630,800
19,376,032
20,151,073
20,957,116
21,795,401
22,667,217
23,573,906
24,516,862
25,497,536
26,517,438 Annual Capacity Increase of 4%
Growth (%)
12.26%
7.30%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
Tax Rate
36.556
35.419
36.137
36.214
35.764
36.405
35.843
35.966
35.975
36.087
35.760
34.662
Increase/(Decrease)to Maintain Tax Rate
203,792
78,084
66,423
159,751
31,667
155,522
133,840
137,015
114,994
203,195
502,360
X:\Budget\2019\Property Taxes\Tax Levy Calculations FUTURE LEVIES