Council Memo (6-10-2019)
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: June 10, 2019
SUBJECT: Budget Meeting #2
On Monday, Council and staff will continue the 2020 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.
Special Revenue Funds
Staff will review detailed line item budgets, a combined budget summary, and source and use cash
flow projections with the City Council and further discuss each of the special revenue funds below:
Above Standard Street Light District
Development Revolving
Tax Increment District No. 1 – Great River Centre
Tax Increment District No. 3 – Riverview Landing
Debt Service Funds
Staff will review a summary of bonds outstanding, detailed line item budgets, a combined budget
summary, and source and use cash flow projections with the City Council and further discuss each
of the 8 debt service funds.
Property Tax Levy
Staff will review the proposed property tax levies specifically for the special revenue and debt
service funds.
The Tax Capacity figure we have been using accounts for approximately 7% growth. This is an
estimate calculated based on Market Value estimates provided by the County at the Board of
Appeal meeting in April 2019.
According to this estimate, the City would be able to provide for a reduction in the City tax rate
with any increase of the total tax levy of less than $486,330.
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
Next Meeting
At this meeting, staff and Council will begin to review the proposed property tax levies and cash
flows for the capital project funds.
Materials Attached for Discussion
1) Special Revenue Funds – Budget & Actuals by Fund
2) Special Revenue Funds – Budget Summary
3) Special Revenue Funds – Tax Abatements Summary
4) Debt Service Funds – Budget & Actuals by Fund
5) Debt Service Funds – Budget Summary
6) Debt Service Funds – Liability Summary
7) Tax Levy Summary – Payable 2020