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ITEM 1 Budget Meeting #3
0 OtCITY OF se 0 MINNESOTA TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: June 24, 2019 SUBJECT: Budget Meeting #3 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. Property Tax Levy — 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 2020 tax levy will increase approximately 7.25%. The City's tax rate for 2019 is 36.060. Based on discussions at previous budget meetings, staff has been directed to prepare a property tax levy that will maintain or decrease the tax rate for 2020. The City would be able to increase the levy approximately $486 thousand for payable 2020 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. Property Tax Lew Summary Staff will review two summary reports with the City Council: 1) The first will compare the preliminary 2020 levy amounts with those dating back to 2016 so that trends can be identified. 2) The second will provide a projection of any existing property tax levies 10 years into the future. City of Otsego 113400 90`I' Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-9163 Property Tax Levy — 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 draft Capital Improvement Plan outlines an annual average of approximately $2 million in annual maintenance and renewal projects. 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 present some additional information regarding the conceptual implementation of franchise fees as an additional funding source for the City's pavement management program. This was last discussed with the City Council on March 25, 2019. 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 the City builds new parks and trails. Based on current source and use cash flow projections, Staff is recommending a $33,000 property tax levy for 2020 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 $60,000 property tax levy for 2020 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 draft Capital Improvement Plan includes average annual expenditures of $413 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 9011 Street NE, Otsego, MN 55330 1 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(s) within the City of Otsego. 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 $32,000 property tax levy for 2020. 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. The fund does have some specific projects included in upcoming years, mostly which are for the City's local share of Wright County road improvement and expansion projects. 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. City Buildings & Property Maintenance This fund was recommended to be established during the 2019 budget discussions. This fund will account for the accumulation of resources to finance future buildings and property maintenance projects. 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. Next Meetings The review of the General fund budget is scheduled to begin on July 29. 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 Levy Summaries 2) Tax Rate Comparison 3) Cash Flow Projections City of Otsego 113400 901' Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-9163 City of Otsego Property Tax Levy Calculations Payable 2019 Y Revised: June 17, 2019 Projected (A) Levy Description 2016 2017 2018 2019 2020 Change Change General Revenues Tax Abatements Debt Service Series 2010D & Series 2011A Series 2010B Series 2018A Sub -total Capital Reserves Pavement Management Trails Management Parks Equipment Capital Equipment Revolving Fire Reserve Storm Water Capital Improvements City Buildings & Property Sub -total Grand Total 3,529,352 3,766,000 3,986,000 4,210,000 88,814 81,385 65,546 60,816 225,000 225,000 215,000 205,000 415,000 430,000 440,000 450,000 - - - 79,293 640,000 655,000 655,000 734,293 339,200 475,960 600,000 800,000 25,250 26,000 30,000 32,000 54,590 55,000 56,000 58,000 168,000 235,200 242,256 260,000 150,000 15 0, 000 16 0, 000 17 0, 000 25,000 25,000 26,000 30,000 - 160,200 282,500 355,000 762,040 1,127,360 1,396,756 1,705,000 5,020,206 5,629,745 6,103,302 6,710,109 4,528,000 318,000 56,491 (4,325) 195,000 (10,000) 460,000 10,000 91,757 12,464 746,757 12,464 1.709/6 950,000 150,000 33,000 1,000 60,000 2,000 280,000 20,000 180,000 10,000 32,000 2,000 310,000 (45,000) 20,000 20,000 1,865,000 160,000 7,196,248 486,139 1 7.24% Projected (B) 2020 Change Change 4,528,000 318,000 56,491 (4,325) 7.117 195,000 (10,000) 460,000 10,000 91,757 12,464 746,757 12,464 1.70% 950,000 150,000 33,000 1,000 60,000 2,000 280,000 20,000 180,000 10,000 32,000 2,000 - (355,000) 20,000 20,000 1,555,000 (150,000) 6,886,248 176,139 2.62% Tax Capacity 13,238,424 14,873,116 16,783,003 18,695,511 20,158,430 20,158,430 Growth (%) 16.55% 12.35% 12.84% 11.40% 7.82% 7.82% Net Tax Capacity 13,238,424 14,872,821 16,696,008 18,608,540 19,956,846 19,956,846 Growth (%) 16.55% 12.35% 12.26% 11.46% 7.25% 7.25% Tax Rate 37.921 37.852 36.556 36.060 36.059 34.506 Population Tax Levy Per Capita 14,968 15,472 16,019 16,605 17,323 335 364 381 404 415 17,323 398 Taxing 2016 2017 2018 2019 2020 Estimated 2020 Estimated Authority Final Tax Rate Final Tax Rate Final Tax Rate Final Tax Rate Estimate Change Estimate Change City of Otsego 37.921 37.852 36.556 36.060 36.059 0.00% 34.506 -4.31% Wright County 39.970 39.599 39.946 44.273 44.273 0.00% 44.273 0.00% School District 39.266 36.659 36.137 32.865 32.865 0.00% 32.865 0.00% School District - RMV 19.441 19.373 19.422 19.430 19.430 0.00% 19.430 0.00% Description Median Appraised Value Less: MV Exclusion able Market Value Capacity Taxing Authority y of Otsego ight County cool District cool District - RMV uallncrease 2017 2018 2019 2020 Change 198,300 217,206 220,572 247,859 12.37% (19,393) (17,691) (17,389) (14,933) 178,907 199,515 203,183 232,926 14.64% 1,789 1,995 2,032 2,329 2017 2018 2019 2020 Tax Estimated Estimated Estimated Estimated 14.56% Tax Tax Tax Tax Change 677 729 733 840 14.60% 708 797 900 1,031 14.56% 656 721 668 766 14.67% 384 422 429 482 12.35% 2,425 2,669 2,730 3,119 14.25% 450 X:\Budget\2020\Property Taxes\Tax Levy Calculations 2020 Change 247,859 12.37% (14,933) 232,926 14.64% 2,329 2020 Estimated Tax Change 804 9.69% 1,031 14.56% 766 14.67% 482 12.35% 3,083 12.93% 414 Comment Very Preliminary Estimated at 1% of County Provided Value Estimated at 99% of Tax Capacity Source = MN State Demographer 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. 6-24 City of Otsego Property Tax Levy Calculations Future Tax Levies Y Revised: June 17, 2019 Levy Description 2019 General Revenues 4,210,000 Tax Abatements 60,816 Debt Service Preliminary Projections 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 4,528,000 4,754,400 4,992,120 5,241,726 5,503,812 5,779,003 6,067,953 6,371,351 6,689,918 7,024,414 56,491 44,369 - - - - - - - - Comments Annual Increase of 5% Current Abatements Only Series 2010D & Series 2011A 205,000 195,000 195,000 450,000 425,000 400,000 300,000 300,000 300,000 300,000 - Debt Expires = 2028 Series 2010B 450,000 460,000 460,000 - - - - - - - - Debt Expires = 2021 Series 2018A 79,293 91,757 94,551 97,187 94,415 102,144 104,308 106,313 113,412 114,946 9,232 Debt Expires = 2034 NEW - Fire Station - - - - - - - 488,847 488,847 488,847 488,847 $5M Bond - 15 Years at 4.50% Interest (2026) NEW - PW Expansion - - - - - - - - - - Potential item when looking out this far. Sub -total 734,293 746,757 749,551 547,187 519,415 502,144 404,308 895,160 902,259 903,793 498,079 Capital Reserves Pavement Management 800,000 950,000 1,100,000 1,250,000 1,400,000 1,500,000 1,600,000 1,700,000 1,800,000 1,900,000 2,000,000 See Cash Flow Spreadsheets Trails Management 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 Increase $1,000 Annually Parks Equipment 58,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 Increase $2,000 Annually Capital Equipment Revolving 260,000 280,000 300,000 320,000 340,000 360,000 380,000 400,000 420,000 440,000 460,000 Increase $20,000 Annually Fire Reserve 170,000 180,000 190,000 200,000 210,000 220,000 230,000 - - - - Increase $10,000 Annually Until Debt Issued Storm Water 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000 Increase $2,000 Annually Capital Improvements 355,000 310,000 - - - - - - - - - Evaluate Annually City Buildings & Property - 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Evaluate Annually Sub -total 1,705,000 1,865,000 1,740,000 1,925,000 2,110,000 2,245,000 2,380,000 2,275,000 2,400,000 2,525,000 2,650,000 Grand Total 6,710,109 7,196,248 7,288,320 7,464,307 7,871,141 8,250,956 8,563,311 9,238,113 9,673,610 10,118,711 10,172,493 Net Tax Capacity 18,608,540 19,956,846 20,755,120 21,585,324 22,448,737 23,346,687 24,280,554 25,251,776 26,261,847 27,312,321 28,404,814 Annual Capacity Increase of 4% Growth (%) 11.46% 7.25% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Tax Rate 36.060 36.059 35.116 34.580 35.063 35.341 35.268 36.584 36.835 37.048 35.813 Increase/(Decrease) to Maintain Tax Rate 250 196,038 319,425 223,941 167,929 192,329 (132,247) (203,509) (269,806) 70,368 X:\Budget\2020\Property Taxes\Tax Levy Calculations FUTURE LEVIES 70.000 - - - --- -- - 11-11101111 50.000 30.000 20.000 10.000 \\° eJ D 2019 2017 2018 Oe\a� Oa�,�o OJ�a 2017 2018 2019 Maple Grove 38.245 36.709 34.746 Monticello 34.187 33.427 35.459 Andover 37.375 34.953 35.622 Rogers 38.308 36.810 35.917 Otsego 37.852 36.556 36.060 Anoka 40.913 37.792 36.165 St. Michael 38.073 37.060 37.770 Champlin 41.469 39.704 38.124 Ramsey 42.454 41.730 40.355 Zimmerman 47.469 45.656 44.578 Corcoran 45.994 45.357 45.160 Elk River 49.046 48.779 45.907 Albertville 51.586 49.158 47.294 Big Lake 58.662 56.317 52.472 Delano 53.557 53.980 53.399 Dayton 55.646 56.382 56.259 Buffalo 61.334 61.811 58.926 70.000 - - - --- -- - 11-11101111 50.000 30.000 20.000 10.000 \\° eJ D 2019 2017 2018 Oe\a� Oa�,�o OJ�a 40 City of Otsego Pavement Management Fund Maintenance Projects Cash Flow Summary Revised: June 12, 2019 12.50% 11.11% 10.00% 9.09% 8.33% 7.69% 7.14% 6.67% 6.25% 5.88% Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Property Taxes Intergovernmental (MSA) Intergovernmental (LGA) Investment Interest Debt Issuance Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Maintenance) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital $ 400,000 $ 450,000 $ 500,000 $ 550,000 $ 600,000 $ 650,000 $ 700,000 $ 750,000 $ 800,000 $ 850,000 $ 900,000 217,768 218,857 219,951 221,051 222,156 223,267 224,383 225,505 226,633 227,766 228,905 62,870 62,870 - - - - - - - - - 680,638 731,727 719,951 771,051 822,156 873,267 924,383 975,505 1,026,633 1,077,766 1,128,905 444,869 1,189,647 672,301 640,600 467,668 602,750 1,315,968 1,330,799 1,504,680 788,346 804,354 444,869 1,189,647 672,301 640,600 467,668 602,750 1,315,968 1,330,799 1,504,680 788,346 804,354 1,463,534 1,699,303 1,241,383 1,289,033 1,419,484 1,773,972 2,044,489 1,652,905 1,297,611 819,563 1,108,983 680,638 731,727 719,951 771,051 822,156 873,267 924,383 975,505 1,026,633 1,077,766 1,128,905 (444,869) (1,189,647) (672,301) (640,600) (467,668) (602,750) (1,315,968) (1,330,799) (1,504,680) (788,346) (804,354) $ 1,699,303 $ 1,241,383 $ 1,289,033 $ 1,419,484 $ 1,773,972 $ 2,044,489 $ 1,652,905 $ 1,297,611 $ 819,563 $ 1,108,983 $ 1,433,534 143% 185% 201% 304% 294% 155% 124% 86% 104% 138% 1 Comments Annual Increase of $50,000 MSA Maintenance (1/2% Annual Inflation) LGA - Expect 2020 to be Final Allotment DRAFT 2020-2029 CIP Average = $887,453 X:\Budget\2020\Cash Flows\Capital Funds Maintenance City of Otsego Pavement Management Fund Local Street Renewal Projects 4.0 Cash Flow Summary Revised: June 12, 2019 20.00% 16.67% 14.29% 12.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Property Taxes Special Assessments (Actual) Special Assessments (Levied) Special Assessments (Future) Investment Interest Debt Issuance Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Renewal) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital $ 250,000 $ 300,000 $ 350,000 $ 400,000 $ 450,000 $ 450,000 $ 450,000 $ 450,000 $ 450,000 $ 450,000 $ 450,000 22,718 22,141 21,563 20,985 20,408 19,830 19,253 13,584 8,726 - - - - - 19,600 53,200 88,064 87,168 107,457 121,751 178,832 189,738 272,718 322,141 371,563 440,585 523,608 557,894 556,421 571,041 580,477 628,832 639,738 - - 495,524 1,417,287 727,247 138,934 327,313 251,026 1,098,171 234,657 1,618,431 - - 495,524 1,417,287 727,247 138,934 327,313 251,026 1,098,171 234,657 1,618,431 945,796 1,218,514 1,540,655 1,416,694 439,992 236,353 655,313 884,421 1,204,436 686,742 1,080,917 272,718 322,141 371,563 440,585 523,608 557,894 556,421 571,041 580,477 628,832 639,738 - - (495,524) (1,417,287) (727,247) (138,934) (327,313) (251,026) (1,098,171) (234,657) (1,618,431) $ 1,218,514 $ 1,540,655 $ 1,416,694 $ 439,992 $ 236,353 $ 655,313 $ 884,421 $ 1,204,436 $ 686,742 $ 1,080,917 $ 102,224 #DIV/0! 311% 100% 61% 170% 200% 352% 110% 293% 67% 2 Comments Actual Wright County Settlements Existing levied assessments Assessments on future projects DRAFT 2020-2029 CIP Average = $573,508 XABudget\2020\Cash Flows\Capital Funds Local City of Otsego Pavement Management Fund Local Street Renewal Projects Cash Flow Summary Revised: June 12, 2019 Revenues Property Taxes Franchise Fees Franchise Fees (Rebates) Special Assessments (Actual) Special Assessments (Levied) Special Assessments (Future) Investment Interest Debt Issuance Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Renewal) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital 20.00% -100.00% Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 $ 250,000 $ 300,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - - - 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 - - (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) 22,718 22,141 21,563 20,985 20,408 19,830 19,253 13,584 8,726 - - 272,718 322,141 706,439 705,861 705,284 704,706 704,129 698,460 693,602 684,876 684,876 - - 495,524 1,417,287 727,247 138,934 327,313 251,026 1,098,171 234,657 1,618,431 - - 495,524 1,417,287 727,247 138,934 327,313 251,026 1,098,171 234,657 1,618,431 945,796 1,218,514 1,540,655 1,751,570 1,040,144 1,018,181 1,583,953 1,960,769 2,408,203 2,003,634 2,453,853 272,718 #DIV, 322,141 706,439 705,861 705,284 704,706 704,129 698,460 693,602 684,876 684,876 3 Comments Hypothetical - Residential at $8 Monthly Hypothetical - Rebate Existing 400 Parcels Actual Wright County Settlements Existing levied assessments DRAFT 2020-2029 CIP Average = $573,508 XAl3udget\2020\Cash Flows\Capital Funds Local -FF City of Otsego Pavement Management Fund Collector Street & MSA Street Projects Cash Flow Summary Revised: June 12, 2019 33.33% 25.00% 20.00% 16.67% 14.29% 12.50% 11.11% 10.00% 9.09% 8.33% Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Property Taxes Intergovernmental Investment Interest Debt Issuance Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Collector) Capital Outlay (CIP-MSA) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital $ 150,000 $ 200,000 $ 250,000 $ 300,000 $ 350,000 $ 400,000 $ 450,000 $ 500,000 $ 550,000 $ 600,000 $ 650,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 561,835 300,549 - - - - - - - - - 292,495 528,573 598,538 - 120,460 140,906 460,615 301,187 21473,040 854,330 829,122 598,538 - 120,460 140,906 460,615 - 301,187 - 21473,040 1,903,570 1,199,240 570,118 221,580 521,580 751,120 1,010,214 999,599 1,499,599 1,748,412 2,348,412 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 (854,330) (829,122) (598,538) - (120,460) (140,906) (460,615) - (301,187) - (2,473,040) $ 1,199,240 $ 570,118 $ 221,580 $ 521,580 $ 751,120 $ 1,010,214 $ 999,599 $ 1,499,599 $ 1,748,412 $ 2,348,412 $ 525,372 145% 95% #DIV/01 433% 533% 219% #DIV/0! 498% #DIV/0! Comments DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP Average = $525,291 0 X:\Budget\2020\Cash Flows\Capital Funds Collector -MSA City of Otsego Pavement Management Fund Combined - All Project Types Cash Flow Summary Revised: June 12, 2019 Revenues Property Taxes Intergovernmental (MSA) Intergovernmental (LGA) Special Assessments (Actual) Special Assessments (Levied) Special Assessments (Future) Investment Interest Debt Issuance Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Maintenance) Capital Outlay (CIP-Renewal) Capital Outlay (CIP-Collector) Capital Outlay (CIP-MSA) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital 18.75% 15.79% 13.64% 12.00% 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 $ 800,000 $ 950,000 $ 1,100,000 $ 1,250,000 $ 1,400,000 $ 1,500,000 $ 1,600,000 $ 1,700,000 $ 1,800,000 $ 1,900,000 $ 2,000,000 217,768 218,857 219,951 221,051 222,156 223,267 224,383 225,505 226,633 227,766 228,905 62,870 62,870 - - - - - - - - - 22,718 22,141 21,563 20,985 20,408 19,830 19,253 13,584 8,726 - - - - - 19,600 53,200 88,064 87,168 107,457 121,751 178,832 189,738 1,103,356 1,253,868 1,341,514 1,511,636 1,695,764 1,831,161 1,930,804 2,046,546 2,157,110 2,306,598 2,418,643 444,869 1,189,647 672,301 640,600 467,668 602,750 1,315,968 1,330,799 1,504,680 788,346 804,354 - - 495,524 1,417,287 727,247 138,934 327,313 251,026 1,098,171 234,657 1,618,431 561,835 300,549 - - - - - - - - - 292,495 528,573 598,538 - 120,460 140,906 460,615 - 301,187 - 2,473,040 1,299,199 2,018,769 1,766,363 2,057,887 1,315,375 882,590 2,103,896 1,581,825 2,904,038 1,023,003 4,895,825 4,312,900 4,117,057 3,352,156 2,927,307 2,381,056 2,761,445 3,710,016 3,536,924 4,001,645 3,254,717 4,538,312 1,103,356 1,253,868 1,341,514 1,511,636 1,695,764 1,831,161 1,930,804 2,046,546 2,157,110 2,306,598 2,418,643 (1,299,199) (2,018,769) (1,766,363) (2,057,887) (1,315,375) (882,590) (2,103,896) (1,581,825) (2,904,038) (1,023,003) (4,895,825) $ 4,117,057 $ 3,352,156 $ 2,927,307 $ 2,381,056 $ 2,761,445 $ 3,710,016 $ 3,536,924 $ 4,001,645 $ 3,254,717 $ 4,538,312 $ 2,061,130 204% 190% 142% 181% 313% 176% 224% 138% 318% 93% 5 Comments MSA Maintenance (1/2% Annual Inflation) LGA - Expect 2020 to be Final Allotment Actual Wright County Settlements Existing levied assessments Assessments on future projects DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP Average = $1,986,252 X:\Budget\2020\Cash Flows\Capital Funds COMBINED City of Otsego Pavement Management Fund Combined - All Project Types (+ Franchise Fees) Cash Flow Summary Revised: June 12, 2019 18.75% -21.05% 13.33% 11.76% 10.53% 9.52% 8.70% 8.00% 7.41% 6.90% Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Property Taxes Franchise Fees Franchise Fees (Rebates) Intergovernmental (MSA) Intergovernmental (LGA) Special Assessments (Actual) Special Assessments (Levied) Special Assessments (Future) Investment Interest Debt Issuance Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Maintenance) Capital Outlay (CIP-Renewal) Capital Outlay (CIP-Collector) Capital Outlay (CIP-MSA) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital $ 800,000 $ 950,000 $ 750,000 $ 850,000 $ 950,000 $ 1,050,000 $ 1,150,000 $ 1,250,000 $ 1,350,000 $ 1,450,000 $ 1,550,000 - - 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 - - (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) 217,768 218,857 219,951 221,051 222,156 223,267 224,383 225,505 226,633 227,766 228,905 62,870 62,870 - - - - - - - - - 22,718 22,141 21,563 20,985 20,408 19,830 19,253 13,584 8,726 - - 1,103,356 1,253,868 1,676,390 1,776,912 1,877,440 1,977,973 2,078,512 2,173,965 2,270,235 2,362,642 2,463,781 444,869 1,189,647 672,301 640,600 467,668 602,750 1,315,968 1,330,799 1,504,680 788,346 804,354 - - 495,524 1,417,287 727,247 138,934 327,313 251,026 1,098,171 234,657 1,618,431 561,835 300,549 - - - - - - - - - 292,495 528,573 598,538 - 120,460 140,906 460,615 - 301,187 - 2,473,040 1,299,199 2,018,769 1,766,363 2,057,887 1,315,375 882,590 2,103,896 1,581,825 2,904,038 1,023,003 4,895,825 4,312,900 4,117,057 3,352,156 3,262,183 2,981,208 3,543,273 4,638,656 4,613,272 5,205,412 4,571,609 5,911,248 1,103,356 1,253,868 1,676,390 1,776,912 1,877,440 1,977,973 2,078,512 2,173,965 2,270,235 2,362,642 2,463,781 (1,299,199) (2,018,769) (1,766,363) (2,057,887) (1,315,375) (882,590) (2,103,896) (1,581,825) (2,904,038) (1,023,003) (4,895,825) $ 4,117,057 $ 3,352,156 $ 3,262,183 $ 2,981,208 $ 3,543,273 $ 4,638,656 $ 4,613,272 $ 5,205,412 $ 4,571,609 $ 5,911,248 $ 3,479,204 204% 190% 159% 227% 401% 220% 292% 179% 447% 121% R1 Comments Hypothetical - Residential at $8 Monthly Hypothetical - Rebate Existing 400 Parcels MSA Maintenance (1/2% Annual Inflation) LGA - Expect 2020 to be Final Allotment Actual Wright County Settlements Existing levied assessments DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP Average = $1,986,252 XABudget\2020\Cash Flows\Capital Funds COMBINED -FF City of Otsego Capital Equipment Revolving Fund Cash Flow Summary V Revised: June 18, 2019 7.69% 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00% 4.76% 4.55% Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues Property Taxes Investment Interest Sales of Fixed Assets Sales of Fixed Assets (Est.) Utility Fund Contributions Transfers In Total Expenses Personal Services Supplies Other Charges & Services Capital Outlay - General Capital Outlay - Streets Capital Outlay - Parks Capital Outlay (Fleet CIP) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Cash Balance - % of Next Year Capital $ 260,000 $ 280,000 $ 300,000 $ 320,000 $ 340,000 $ 360,000 $ 380,000 $ 400,000 $ 420,000 $ 440,000 $ 460,000 66,000 20,000 - - - - - - - - - - 47,000 47,000 - 35,000 50,760 548,000 51,240 - - 326,000 347,000 347,000 320,000 375,000 410,760 380,000 948,000 471,240 440,000 460,000 Comments 12,000 - - - - - - - - - - Tack Trailer 518,277 407,154 396,100 319,200 348,560 427,455 386,800 669,000 215,378 398,210 445,800 DRAFT 2020-2029 CIP 445,800 Average = $413,085 530,277 407,154 396,100 319,200 348,560 427,455 386,800 669,000 215,378 398,210 586,561 382,284 322,130 273,030 273,830 300,270 283,575 276,775 555,775 811,637 853,427 326,000 347,000 347,000 320,000 375,000 410,760 380,000 948,000 471,240 440,000 460,000 (530,277) (407,154) (396,100) (319,200) (348,560) (427,455) (386,800) (669,000) (215,378) (398,210) (445,800) $ 382,284 $ 322,130 $ 273,030 $ 273,830 $ 300,270 $ 283,575 $ 276,775 $ 555,775 $ 811,637 $ 853,427 $ 867,627 94% 81% 86% 79% 70% 73% 41% 258% 204% 191% 7 X:\Budget\2020\Cash Flows\Capital Funds 206 -Capital Equipment City of Otsego Fire Reserves Fund Cash Flow Summary Revised: June 12, 2019 Revenues Property Taxes Property Taxes (Debt Service) Special Assessments Investment Interest Intergovernmental Miscellaneous Debt Issuance Transfers In Total Expenses Fire Study Other Charges & Services Capital Outlay (Land) Capital Outlay (Equipment) Capital Outlay (Building) Debt Service Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 $ 170,000 $ 180,000 $ 190,000 $ 200,000 $ 210,000 $ 220,000 $ 230,000 $ - $ - $ - $ - - - - - - - - 488,847 488,847 488,847 488,847 574,252 - - - - - - - - - - - - 5,000,000 - - - 170,000 754,252 190,000 200,000 210,000 220,000 5,230,000 488,847 488,847 488,847 488,847 750 - - - - - - - 2,653 - - - - - - - - - 1,075,000 - 200,000 - - - - - - - - - - - - 1,926,400 - - - - - 100,000 2,587,000 - - - - - - - 465,569 465,569 465,569 465,569 1,078,403 - 200,000 - - 100,000 4,513,400 465,569 465,569 465,569 465,569 2,416,123 170,000 1,507,720 2,261,972 2,251,972 754,252 190,000 200,000 - I?nn nnm - 2,451,972 2,661,972 210,000 220,000 (inn nnn 2,781,972 3,498,572 5,230,000 488,847 3,521,851 3,545,129 488,847 488,847 (465,569) (465,569 3,568,407 488,847 S 1,507,720 $ 2,261,972 $ 2,251,972 $ 2,451,972 $ 2,661,972 $ 2,781,972 $ 3,498,572 $ 3,521,851 $ 3,545,129 $ 3,568,407 $ 3,591,686 Comments Levy at 105% of Debt Service $5M - 15 Year Bond @ 4.5% Interest Acquisition of 2 Parcels for Future Fire Stations Engine/Tender/Squad/Equip/Gear - Page 117 High Cost of 13,000 Sq/Ft - Page 112 $5M - 15 Year Bond @ 4.5% Interest X:\Budget\2020\Cash Flows\Capital Funds 214 -Fire Reserve City of Otsego Capital Improvements Fund Cash Flow Summary Revised: June 17, 2019 Expenses Forecast I Projection - Capital Improvement Plan Capital Outlay - General 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Revenues - - - - - - - - Property Taxes $ 355,000 $ 310,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - Intergovernmental - - - - - - - - - - Special Assessments - - - - - - - - - - Special Assessments (Levied) 49,094 47,342 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915 Investment Interest - - - - - - - - - - - Sales of Capital Assets - - - - - - - - - - Miscellaneous - - - - - - - - - Transfers In M - - - - - - - - - - Total 1,375,820 357,342 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915 Expenses Capital Outlay - General - - - - - - - - - - Capital Outlay - Public Safety - - - - - - - - Capital Outlay - Public Works - - - - - - - - - - Capital Outlay - Parks - - - - - - - - - - Capital Outlay (IT CIP) - 50,000 - - - - - - - Capital Outlay (Streets CIP) - 39,984 - - - - - - - - Capital Outlay (County CIP) - 1,913,594 87,338 - - - - - - - Capital Outlay (Property CIP) 12,000 - - - - - - - - - - Development Incentives 465,026 - 108,691 - - - - Transfers Out M - - - - - - - - - - Total 567,026 2,003,578 196,029 - - - - - - - - Cash Balance - Beginning 2,150,384 2,959,178 1,312,942 1,143,911 1,170,179 1,195,717 1,220,525 1,244,603 1,267,951 1,273,785 1,278,861 Balance Sheet Effects Revenues 1,375,820 357,342 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915 Expenditures (567,026) (2,003,578) (196,029) - - - - - - - - Cash Balance - Ending $ 2,959,178 $ 1,312,942 $ 1,143,911 $ 1,170,179 $ 1,195,717 $ 1,220,525 $ 1,244,603 $ 1,267,951 $ 1,273,785 $ 1,278,861 $ 1,283,776 z Comments Existing levied assessments DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP DRAFT 2020-2029 CIP Waterfront East Incentives Transfer - Create New Fund #439 X:\13udget\2020\Cash Flows\Capital Funds 414 -Capital Imp. City of Otsego City Buildings, & Property Maintenance Cash Flow Summary Y Revised: June 13, 2019 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Comments Revenues Property Taxes $ - $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 Investment Interest - - - - - - - - - - - Miscellaneous - - - - - - - - - - Transfers In - - - - - - - - - - Transfer - Initial Fund Startup Total 90,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Expenses Supplies - - - - - - - - - - Other Charges & Services - - - - - - - - - - - Capital Outlay - - - - - - - - - - - Capital Outlay (CIP) 86,465 20,000 - - - - - 50,000 - 100,000 DRAFT 2020-2029 CIP Transfers Out - - - - - - - - - - - Total 86,465 20,000 - - - - - - 50,000 - 100,000 Cash Balance - Beginning - 3,535 31535 23,535 43,535 63,535 83,535 103,535 123,535 93,535 113,535 Balance Sheet Effects Revenues 90,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Expenditures (86,465) (20,000) - - - - - - (50,000) - (100,000) Cash Balance - Ending $ 3,535 $ 3,535 $ 23,535 $ 43,535 $ 63,535 $ 83,535 $ 103,535 $ 123,535 $ 93,535 $ 113,535 $ 33,535 Wo X:\Budget\2020\Cash Flows\Capital Funds 439 -Buildings & Property