ITEM 1 Budget Meeting #8
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 26, 2018
SUBJECT: Budget Meeting #8
On Monday, Council and staff will wrap-up the review process of the 2019 Property Tax Levy,
2019 Operating Budgets and the 2019-2028 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) Parks Capital Improvement Plan – Summary by Funding Source
2) Financial Cash Flow - Fund #202 – Trails Management
3) Financial Cash Flow - Fund #203 – Park Development
4) Financial Cash Flow - Fund #205 – Parks Capital Equipment
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
Fleet Vehicles and Equipment CIP
The City has established Fund #206 – Revolving Capital Equipment. The purpose of this fund is to
provide funds and to account for the expenditure of such funds for costs associated with the
replacement of capital equipment, most significantly the City’s machinery and vehicle fleet.
City staff has prepared recommendations for 2019 purchases, which include both replacements of
and additions to the City’s machinery and vehicle fleet. City staff has also prepared a projected
replacement plan through 2028, which covers the entire Capital Improvement Plan period.
City staff presented this information to the Public Works Sub-Committee on September 19th.
Materials for Review and Discussion
1) Fleet Capital Improvement Plan – Summary by Funding Source
2) Comprehensive Machinery and Vehicle Replacement Schedule
3) Financial Cash Flow - Fund #206 – Fleet Vehicles and Equipment
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 has been updated with the completion of the Response Time
Improvement and Fire Service Model Study. The timing of any of the items within the Capital
Improvement Plan are roughly based upon the recommendations outlined in the study, and are
subject to change based on community needs.
Materials for Review and Discussion
1) Financial Cash Flow - Fund #214 – Fire Reserve
City Buildings and Property CIP
The City Administrator/Finance Director is recommending the establishment of Fund #439 – City
Buildings and Property Maintenance. The purpose of this fund would be to accumulate funds that
will be used in financing the costs associated with the maintenance of City buildings and property.
Materials for Review and Discussion
1) City Buildings and Property Capital Improvement Plan – Summary by Funding Source
2) Financial Cash Flow - Fund #439 – City Buildings and Property Maintenance
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) Revolving Capital Improvement Plan – Summary by Funding Source
2) Financial Cash Flow - Fund #414 – Capital Improvements Revolving
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
General Fund Budget
The City Council approved a preliminary General Fund budget of $5,843,229 in September. Staff
will review the proposed changes to that budget.
Materials for Review and Discussion
1) Budget Changes Tracking
2) General Fund – Revenue and Expenditure Summary
3) General Fund – Department Expenditure Summary
Property Tax Levy
The City Council approved a preliminary property tax levy of $6,741,109 in September. Staff will
review the proposed changes to that levy.
Materials for Review and Discussion
1) 2019 Property Tax Levy Calculations
2) Projected Tax Levies to 2024
December 10, 2018 Meeting
The City will be holding the required Truth-in-Taxation presentation during the 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 2019
- Final General Fund Budget for 2019
- Final 2019 Budgets for:
o Public Utility Funds
o Debt Service Funds
o Special Revenue Funds
- Capital Improvement Plan for 2019-2028
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.