Loading...
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 NO 0 aoec O p O O Po Gca Qa hoc SCF �o� ��� \��e '1. Poe �aQ�e � 2018 X2017 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