ITEM 4 Budget Meeting #7
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 28, 2019
SUBJECT: Budget Meeting #7
On Monday, Council and staff will begin the review of 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) Trails Management - Capital Improvement Plan – Summary
2) Financial Cash Flow - Fund #202 – Trails Management
3) Park Development – Capital Improvement Plan – Summary
4) Park Development – Capital Improvement Plan – 2020 Project Details
5) Financial Cash Flow - Fund #203 – Park Development
6) Park Capital Equipment – Capital Improvement Plan - Summary
7) 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 2020 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 2029, which covers the entire Capital Improvement Plan period.
City staff presented this information to the Public Works Sub-Committee on September 18th.
Materials for Review and Discussion
1) Capital Equipment Revolving - Capital Improvement Plan – Summary
2) Capital Equipment Revolving – Capital Improvement Plan – 2020 Details
3) Financial Cash Flow - Fund #206 – Fleet Vehicles and Equipment
4) Comprehensive Machinery and Vehicle Replacement Schedule
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) Capital Improvements Revolving - Capital Improvement Plan – Summary
2) Financial Cash Flow - Fund #414 – Capital Improvements Revolving
City Buildings and Property CIP
During the 2019-2028 Capital Improvement Plan review process, the City Administrator/Finance
Director recommended the establishment of Fund #439 – City Buildings and Property Maintenance.
The purpose of this fund is to accumulate funds that will be used in financing the costs associated
with the maintenance of City buildings and property.
The establishment and initial funding of Fund #439 was to be with an interfund transfer of $90,000
from Fund #414 – Capital Improvements Revolving. The City Council needs to provide a formal
motion to authorize City staff to record such a transaction in the financial software.
Materials for Review and Discussion
1) Buildings and Property Maintenance - Capital Improvement Plan – Summary
2) Financial Cash Flow - Fund #439 – Buildings and Property Maintenance
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 $6,302,944 in September. Staff
will review the proposed changes to that budget.
Materials for Review and Discussion
1) Budget Changes Tracking
Property Tax Levy
The City Council approved a preliminary property tax levy of $7,194,249 in September. There have
been no changes to the property tax levy since that approval.
Next Meetings
The schedule for the remaining budget meetings is as follows:
1) November 12th – Pavement Management CIP
2) November 25th – Public Utility Operating Budgets and CIP
3) December 9th – Truth in Taxation Public Meeting
Staff would be seeking direction from the City Council on whether any additional review topics or
budget meetings are necessary, or if the City Council concurs with what has been presented and
reviewed thus far.
City of Otsego
General Fund Budget ‐ 2020
Budget Changes Tracking
Total Expenditures ‐ Preliminary Budget (September 9th) 6,302,944
Property & Liability Insurance Rates Finalized
City Council (1,671)
City Administrator (172)
Administration (484)
Finance (369)
Human Resources 446
Prairie Center (4)
Building Safety (216)
Streets Maintenance (699)
Parks Maintenance 1,164
Recreation (159)
Albertville Fire Budget Increased for Wages & Benefits
Fire Protection 11,892
Total Expenditures ‐ Final Budget (December 9th) 6,312,672
9,728 Change
X:\Budget\2020\General Fund\3.0 - 2020 FINAL BUDGETS INPUT