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: October 22, 2018
SUBJECT: Budget Meeting #6
On Monday, Council and staff will review the draft 2019 Public Utility Operating Budgets and the
2019 – 2028 Public Utility Capital Improvement Plan (CIP). I have developed an outline of
discussion topics below.
Water Utility Fund
Council and staff will be reviewing the following:
Materials for Review and Discussion
1) Operating Budget
a. Line Item Requests
b. Detail of Line Item Requests
2) CIP Projects Summary
3) Financial Analysis – Cash Flows
a. Operating Fund #601
b. WAC Fund #360
c. Combined Operating & WAC
Sanitary Sewer Utility Fund
Council and staff will be reviewing the following:
Materials for Review and Discussion
1) Operating Budget
a. Line Item Requests
b. Detail of Line Item Requests
2) CIP Projects Summary
3) Financial Analysis – Cash Flows
a. Operating Fund #602
b. SAC Fund #361
c. Combined Operating & SAC (400 REC’s)
d. Combined Operating & SAC (150 REC’s)
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
Storm Water Utility Fund
Council and staff will be reviewing the following:
Materials for Review and Discussion
1) Operating Budget
a. Line Item Requests
2) Financial Analysis – Cash Flows
a. Operating Fund #220
b. Operating Fund #222
Next Steps
The 2019 Public Utility Operating Budgets and the 2019 – 2028 Public Utility Capital Improvement
Plan (CIP) will need to be adopted by the City Council at the December 10, 2018 meeting.
I would not expect that the recommended rate increases discussed at this meeting to materially
change; however, the rate increases would not be effective until March 2019. This allows staff to
fully analyze the 2018 revenues before recommending adoption of the rate increases. Staff will
bring forward formal action for Council consideration in February 2019.
Although there are currently no additional meetings scheduled to specifically review the Public
Utility funds, there are multiple budget meetings (as noted below) in which further review could be
added to the agenda.
Staff is seeking direction from the City Council on how they would like to proceed.
Next Meetings
The schedule for the remaining budget meetings is as follows:
1) November 13th – Pavement Management CIP
2) November 26th – Various CIP (Administration, IT, Parks & Trails, Buildings, etc.)
3) December 10th – Truth in Taxation Public Meeting
The November meetings above are scheduled to immediately follow the regular City Council
meetings on each respective date.
The Truth in Taxation Public Meeting is an item on the regular City Council meeting agenda.