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ITEM 1 Budget #9
Y OtCITY QF a MINNESOTA TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: November 25, 2019 SUBJECT: Budget Meeting #9 On Monday, Council and staff will wrap-up the review process of the 2020 Property Tax Levy, 2020 Operating Budgets and the 2020-2029 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. Water Utility Fund Council and staff will be reviewing the following: Materials for Review and Discussion 1) Operating Budget 2) CIP Projects Summary 3) Source & Use Cash Flow Projection Sanitary Sewer Utility Fund Council and staff will be reviewing the following: Materials for Review and Discussion 1) Operating Budget 2) CIP Projects Summary 3) Source & Use Cash Flow Projection Storm Water Utility Fund Council and staff will be reviewing the following: Materials for Review and Discussion 1) Operating Budget City of Otsego 113400 90' Street NE, Otsego, MN 553301 Tel. (763) 441-4414 Fax (763) 441-9163 Utility Rates 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 2020. This allows staff to fully analyze the 2019 revenues before recommending adoption of the rate increases. Staff will bring forward formal action for Council consideration in February 2020. General Fund The City Council approved a preliminary General Fund budget of $6,302,944 in September. The proposed final General Fund budget is $6,312,672. City staff reviewed the reasoning for the changes at the November 12, 2019 budget meeting. City staff will provide additional summary review of the 2020 General Fund budget at this meeting. Materials for Review and Discussion 1) Budget Changes Tracking 2) Revenue & Expenditure Summary Property Tax Lew 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. City staff will provide additional review of the 2020 property tax levy at this meeting. Materials for Review and Discussion 1) Tax Levy Calculations December 9, 2019 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 2020 - Final General Fund Budget for 2020 - Final 2020 Budgets for: o Public Utility Funds o Debt Service Funds o Special Revenue Funds - Capital Improvement Plan for 2020-2029 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. City of Otsego 113400 90' Street NE, Otsego, MN 553301 Tel. (763) 441-4414 Fax (763) 441-9163 City of Otsego General Fund Budget - 2020 Requested Budget Revenue & Expenditure Summary Description Revenues Taxes Cable Franchise Fees Licenses & Permits Intergovernmental Charges for Services Special Assessments Fines & Forfeitures Investment Interest Miscellaneous Interfund Transfers Subtotal Expenditures General Government Public Safety Public Works Culture & Recreation Economic Development Interfund Transfers Subtotal Net Change in Fund Balance Requested Preliminary Final Actual Actual Year -to -Date Budget Budget Budget Budget Revision 2017 2018 2019 2019 2020 2020 2020 Amounts Comments $ 3,756,375 $ 3,992,749 $ 2,274,158 $ 4,190,235 $ 4,552,957 $ 4,496,809 $ 4,494,537 $ (2,272) Reduced for Balanced Budget 135,652 139,161 104,114 140,000 141,000 141,000 141,000 1,363,384 1,672,906 1,569,910 982,401 1,086,220 1,086,220 1,086,220 74,081 78,437 81,754 70,800 75,000 75,000 75,000 275,565 313,583 282,535 162,820 174,365 202,615 202,615 8,495 6,403 2,808 5,300 4,600 4,600 4,600 21,092 25,616 22,161 24,000 24,000 24,000 24,000 - 29,501 45,682 1,323,612 65,000 71,000 71,000 83,000 12,000 Updated for September YTD 219,296 21,169 40,022 - - - - - 155,042 159,840 171,900 171,900 201,700 201,700 201,700 6,038,483 6,455,546 5,872,973 5,812,456 6,330,842 6,302,944 6,312,672 9,728 1,079,575 1,188,216 1,096,595 1,318,961 1,464,127 1,464,603 1,462,349 (2,254) LMCIT Final Quote 1,895,465 2,168,187 1,984,723 2,374,426 2,597,827 2,597,842 2,609,518 11,676 LMCIT Final Quote / ALB Fire Contract 1,055,964 1,170,466 1,120,576 1,297,889 1,376,185 1,351,255 1,350,556 (699) LMCIT Final Quote 587,737 644,462 661,816 706,920 763,743 763,784 764,789 1,005 LMCIT Final Quote 113,579 113,311 100,371 114,260 128,960 125,460 125,460 - 1,074,567 948,076 971,726 - - - - - 5,806,887 6,232,717 5,935,807 5,812,456 6,330,842 6,302,944 6,312,672 9,728 $ 231,596 $ 222,829 $ (62,833) $ - $ - $ - $ - $ - City of Otsego General Fund Budget - 2020 Budget Changes Tracking Total Expenditures - Draft Budget Binder (July 22nd) $ 6,330,842 Economic Development City Development Brochure - 250 Copies of 6 Page Trifold Brochure (3,500) Streets Maintenance Front Mount Snowblower for 6000 Tractor (15,500) Hydraulic Shouldering Machine (9,300) Health Insurance Rates Finalized City Administrator 120 Administration 120 Finance 120 Human Resources 116 Building Safety 15 Streets Maintenance (43) Fleet Management (87) Parks Maintenance (128) Recreation 169 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 City of Otsego Sewer Utility Fund Cash Flow Summary V Revised: November 20, 2019 Estimated Bill (5k Gallons) $ 41.99 $ 45.35 $ 48.98 $ 52.90 $ 57.13 $ 61.70 $ 66.63 $ 71.96 $ 77.72 $ 83.94 $ 85.62 Rate Increase (Inflation) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Rate Increase (Adjustment) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 0.00% Total Rate Increase 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 2.00% Connection Fee Inflation 2.90% 1.77% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% New Customers 300 297 200 267 150 150 150 150 150 150 150 Forecast - Projected - 30,000 31,500 33,000 34,500 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Comments Sanitary Sewer Fund 25,000,000 100,000 800,000 - See DRAFT 2019-2028 CIP Capital Outlay (Collection) - 1,009,558 1,001,920 Operating $ 2,210,880 $ 2,551,009 $ 2,929,646 $ 3,290,968 $ 3,737,281 $ 4,147,320 $ 4,599,046 $ 5,096,505 $ 5,644,123 $ 6,246,744 $ 6,525,790 Assumes Inflation, Rate Adjustments & Customer Growth Non -Operating - - - - - - - - - - - Transfers In 1,840,528 - 1,866,792 1,592,344 1,517,608 - - - - Based on Existing Bond Issues Debt Service (Projected) Bond Proceeds - 15,000,000 - - - 27,260,000 - - - - - SAC Fund 128,925 151,347 154,374 157,461 160,611 163,823 167,099 170,441 173,850 177,327 180,874 Connection Fees 3,402,600 2,019,117 2,003,840 2,675,126 1,502,880 1,517,909 1,533,088 1,548,419 1,563,903 1,579,542 1,595,337 Assumes Rate Adjustments Special Assessments 89,796 60,137 58,295 56,454 54,613 23,412 22,525 - - - - Investment Interest - - - - - - - - - - - Total 5,703,276 19,630,263 4,991,781 6,022,548 5,294,774 32,948,641 6,154,659 6,644,924 7,208,026 7,826,286 8,121,128 Expenses Personal Servcies 352,448 427,724 628,951 641,530 654,361 667,448 680,797 800,776 925,282 943,788 962,664 2019 Budget -Then 2% Inflation Supplies 169,254 220,953 525,206 545,594 562,170 579,191 596,667 614,612 730,554 752,777 775,596 2019 Budget -Then 2% Inflation Services & Other Charges 1,664,547 1,689,380 644,361 666,926 685,811 705,184 725,057 745,443 851,685 878,646 906,345 2019 Budget (Engineering Reduced) - Then 2% Inflation Depreciation 1,015,000 1,015,000 1,035,300 1,056,006 1,077,126 1,098,669 1,120,642 1,143,055 1,165,916 1,189,234 1,213,019 2019 Budget -Then 2% Inflation Capital Outlay - - - - - - - - - - - 7,042,343 $ Capital Outlay (General) 53,000 2,250 - 1,154,490 $ - - - - Capital Outlay (Fleet) - 30,000 31,500 33,000 34,500 - 411,000 38,430 See Fleet CIP (Allocated 75%) Capital Outlay (Current CIP) 50,000 13,428,113 45,000 - 2,500,000 25,000,000 100,000 800,000 - See DRAFT 2019-2028 CIP Capital Outlay (Collection) - 1,009,558 1,001,920 1,337,563 751,440 758,954 766,544 774,209 781,951 789,771 797,669 Assumed at 50% of SAC Revenue Capital Outlay (R & R Plan) 280,000 200,000 225,000 250,000 275,000 300,000 325,000 350,000 375,000 400,000 425,000 Based on Master Plan Debt Service (Existing) 3,469,280 1,835,613 1,840,528 1,852,792 1,866,792 1,592,344 1,517,608 1,516,339 - - - Based on Existing Bond Issues Debt Service (Projected) - 1,049,040 900,633 900,509 900,382 1,380,216 2,906,268 2,907,365 2,906,281 2,903,218 2,903,041 Based on Projected Bond Issues Transfers Out - General Fund 128,925 151,347 154,374 157,461 160,611 163,823 167,099 170,441 173,850 177,327 180,874 General Fund - Administrative Functions (Inflates 3%) Transfers Out - WAC - - - - - 200,351 346,025 363,013 - - - Assumes Subsidy from Sewer for Defict WAC Transfers Out - Jet Vac 32,800 - - - - - - - - - - Transfer to Debt Fund 399 - Jet Vac (80%) Total 7,215,254 21,058,978 7,032,773 7,408,383 9,466,693 32,480,679 9,251,708 10,596,254 7,948,950 8,034,761 8,164,207 Cash Balance - Beginning 9,288,557 8,791,579 8,377,863 7,372,171 7,042,343 3,947,551 5,514,180 3,537,773 729,497 1,154,490 2,135,248 Balance Sheet Effects 726,076 569,594 586,691 601,694 617,063 632,806 679,955 782,067 802,824 824,098 862,692 Revenues 5,703,276 19,630,263 4,991,781 6,022,548 5,294,774 32,948,641 6,154,659 6,644,924 7,208,026 7,826,286 8,121,128 Expenditures (7,215,254) (21,058,978) (7,032,773) (7,408,383) (9,466,693) (32,480,679) (9,251,708) (10,596,254) (7,948,950) (8,034,761) (8,164,207) Noncash - Depreciation 1,015,000 1,015,000 1,035,300 1,056,006 1,077,126 1,098,669 1,120,642 1,143,055 1,165,916 1,189,234 1,213,019 Cash Balance - Ending $ 8,791,579 $ 8,377,863 $ 7,372,171 $ 7,042,343 $ 3,947,551 $ 5,514,180 $ 3,537,773 $ 729,497 $ 1,154,490 $ 2,135,248 $ 3,305,188 Cash Balance Reserve Operating (3.5 Months of Next Year) 726,076 569,594 586,691 601,694 617,063 632,806 679,955 782,067 802,824 824,098 862,692 Capital (100% of Next Year Less Bond Projects) 1,241,808 1,303,420 1,587,563 3,559,440 1,093,454 1,191,544 2,335,209 1,195,381 1,189,771 1,222,669 1,230,645 Debt Service (100% of Next Year) 2,884,653 2,741,161 2,753,301 2,767,174 2,972,560 4,423,876 4,423,704 2,906,281 2,903,218 2,903,041 2,900,609 Total Cash Reserve Recommendation 4,852,538 4,614,175 4,927,555 6,928,308 4,683,078 6,248,226 7,438,868 4,883,729 4,895,813 4,949,808 4,993,946 Percentage of Cash Reserve on Hand 181.17% 181.57% 149.61% 101.65% 84.29% 88.25% 47.56% 14.94% 23.58% 43.14% 66.18% X:\Budget\2020\Cash Flows\Utility Funds Combined Sewer City of Otsego Enterprise Fund Budget - 2020 Department Requests Sanitary Sewer Utility 49450 - Sanitary Sewer Utilitv Fund Account Number Fund Department Source Account Description Revenues 602 49450 37200 SEWER SALES 602 49450 31900 PENALTIES AND INTEREST 602 49450 34000 CHARGES FOR SERVICES TOTAL - OPERATING 602 49450 33422 OTHER STATE AID GRANTS 602 49450 36200 MISCELLANEOUS REVENUES 602 49450 36210 INTEREST EARNINGS 602 49450 36213 NEY CHANGE IN INVESTMENT FMV 602 49450 36220 RENTAL INCOME 602 49450 36232 CAPITAL CONTRIB. DEVELOPERS 602 49450 38020 DONATIONS & CONTRIBUTIONS 602 49450 38991 REFUNDS & REIMBURSEMENTS 602 49450 39101 SALES OF FIXED ASSETS 602 49450 39200 TRANSFERS IN 602 49450 39250 TRANSFERIN- CAPITALASSETS 602 49450 39300 PROCEEDS - BONDS ISSUED TOTAL - NON OPERATING TOTAL -REVENUES Expenses 1,502 17,116 25,784 602 49450 101 FULL-TIME EMPLOYEES REGULAR 602 49450 102 WAGES - FT OVERTIME 602 49450 104 WAGES - PT EMPOYEES 602 49450 119 PAYROLL ALLOCATION 602 49450 121 PERA 602 49450 122 FICA AND MEDICARE 602 49450 123 HEALTH 602 49450 130 OTHER EMPLOYER PAID INS 602 49450 150 WORKERS COMPENSATION 602 49450 191 GERF PENSION EXPENSE TOTAL -PERSONAL SERVICES 4,716 - 602 49450 201 OFFICE SUPPLIES AND EXPENSES 602 49450 202 FUEL 602 49450 206 POSTAGE 602 49450 210 OPERATING SUPPLIES 602 49450 216 CHEMICAL SUPPLIES 602 49450 220 REPAIRS/MAINTSUPPLIES 602 49450 225 UNIFORMS/CLOTHING ALLOWANCE 602 49450 227 SAFETY SUPPLIES 602 49450 240 SMALL TOOLS/EQUIPMENT 602 49450 298 W/S FLEET EXPENSES TOTAL - SUPPLIES Requested Actual Actual Year -to -Date Budget Budget 2017 2018 2019 2019 2020 Comments $ 1,672,342 $ 1,847,960 $ 1,937,860 $ 1,935,248 $ 2,248,557 Includes 8% Rate Increase - See Cash Flow 65,276 73,442 85,098 67,000 77,000 Estimated - Represents Average of Actuals for 2017-2019 (YTD) 1,737,618 1,921,403 2,022,958 2,002,248 2,325,557 - 1,502 17,116 25,784 (7,116) (7,410) 551,275 412,010 6,449 9,981 7,955 - 3,281 - 8,356 - 61,473 86,198 - - - - - 15,000,000 637,553 531,347 7,955 - 15,000,000 2,375,171 2,452,750 2,030,913 2,002,248 17,325,557 205,579 221,705 197,259 235,066 283,671 8,373 14,368 12,485 11,250 11,250 - 9,672 14,496 23,400 25,740 15,903 17,429 15,697 18,474 22,119 15,601 17,958 16,233 20,633 24,530 29,798 31,874 32,719 32,866 49,334 8,794 9,920 16,181 10,759 11,080 30,535 4,218 - - - 314,583 327,144 305,069 352,448 427,724 4,495 4,454 4,166 4,500 4,500 8,915 9,134 1,628 8,753 11,003 7,712 6,240 6,161 10,716 12,300 22,801 17,765 17,151 25,000 25,000 29,466 24,464 30,808 36,000 64,000 52,026 89,555 91,359 72,000 91,500 1,161 2,010 1,048 1,585 1,950 457 2,679 - 2,200 2,200 3,954 6,875 3,629 4,500 4,500 3,075 4,716 - 4,000 4,000 134,062 167,893 155,950 169,254 220,953 Based on Actual 2019-2020 Premiums + 3% Inflation Allocated 75% of 4,890 Gallons (2018 Actual) at $3.00 (Same Rate as Fleet) Allocated 50% of Monthly Bill Mailings (4,100 Accounts at $0.50) See Detailed Attachment See Detailed Attachment See Detailed Attachment See Detailed Attachment X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT Sewer Fund City of Otsego Enterprise Fund Budget - 2020 Department Requests Sanitary Sewer Utility 49450 - Sanitary Sewer Utility Fund Requested Account Number Actual Actual Year -to -Date Budget Budget Fund Department Source Account Description 2017 2018 2019 2019 2020 602 49450 301 LEGAL SERVICES - - - 1,000 500 602 49450 302 ENGINEERING FEES 93,671 77,616 628,096 1,184,036 1,165,000 602 49450 303 PLANNING FEES - 200 50 1,000 500 602 49450 306 PERMIT & FEES 8,590 7,350 9,830 7,350 7,350 602 49450 315 GIS SERVICES 4,230 9,416 4,196 7,500 7,500 602 49450 320 TELEPHONE 6,360 7,056 5,389 7,200 7,800 602 49450 321 MILEAGE/TRAVEL 217 186 418 300 300 602 49450 322 UTILITIES 198,002 212,760 165,223 195,000 203,000 602 49450 325 GARBAGE SERVICE 8,328 17,079 16,544 24,000 22,200 602 49450 350 PRINT & PUBLISHING - 168 88 300 300 602 49450 355 DUES & MEMBERSHIPS 323 402 419 440 440 602 49450 360 EDUCATION/TRAINING/CONFERENCES 2,231 2,494 3,659 4,066 3,429 602 49450 361 LIABILITY AND PROPERTY INSURAN 31,836 33,128 59,856 33,790 34,246 602 49450 390 CONTRACTED SERVICES 108,495 138,935 113,781 119,000 157,000 602 49450 402 REPAIRS/MAINT BUILDINGS 3,814 - - - - 602 49450 410 RENTALS 1,020 1,465 1,516 1,465 1,465 602 49450 419 BIOSOLIDS HAULING 41,580 37,044 - 55,000 50,000 602 49450 437 BANK SERVICE CHARGES 22,528 29,175 25,855 23,100 28,350 TOTAL - SERVICES & OTHER CHARGES 531,226 574,473 1,034,920 1,664,547 1,689,380 602 49450 500 CAPITAL OUTLAY (GENERAL) - 1,257 753 - 2,250 602 49450 501 EQUIPMENT 55,988 22,890 38,409 53,000 - 602 49450 530 IMPROVEMENTS OTHER THAN BLDG 11,250 116,108 25,465 234,933 13,428,113 602 49450 550 MOTOR VEHICLES 32,115 107,880 - - 30,000 602 49450 590 REHABILITATION & REPLACEMENT - 38,425 49,500 280,000 200,000 602 49450 599 CAPITALIZED ASSET OFFSET (83,023) (268,110) - - - TOTAL - CAPITAL OUTLAY 16,330 18,449 114,128 567,933 13,660,363 602 49450 420 DEPRECIATION 912,688 961,119 - 1,015,000 1,015,000 602 49450 610 BOND INTEREST - - - - - 602 49450 720 OPERATING TRANSFERS 255,481 325,070 328,490 328,515 188,496 TOTAL - OTHER 1,168,169 1,286,189 328,490 1,343,515 1,203,496 TOTAL - EXPENSES 2,164,371 2,374,147 1,938,556 4,097,697 17,201,916 NET INCOME / (LOSS) $ 210,801 $ 78,603 $ 92,357 $ (2,095,449) $ 123,641 Comments See Detailed Attachment See Detailed Attachment See Detailed Attachment Estimated - Represents Average of Actuals for 2017-2019 (YTD) Randy's Environmental Services ($850 Mth) / Waste Mgmt ($1,000 Mth) Statutory Publish Requirements (Budget & Financial Statements) M MUA Membership (75%) + Suburban Utility Association (50% See Detailed Attachment Based on Actual 2019-2020 Premiums See Detailed Attachment Lease Payments - Utility Bill Folding + Envelope Stuffing Machine Pumping of Storage Tanks w/ Land Application Estimated - Represents Average of Actuals for 2017-2019 (YTD) + 5% Computer Replacement (Kurt) + Computer Addition (Seth) See Detailed Attachment Draft 2020-2029 CIP Fleet CIP - Addition of 3/4 Ton Pickup (Allocated 75%) See Detailed Attachment Increase to account for depreciation on Developer Assets General Fund ($151,347) + SAC Debt ($37,149) X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT Sewer Fund City of Otsego Enterprise Fund Budget - 2020 Detail of Line Item Requests Sanitary Sewer Utility Requested Budget Budget Account No. & Description 2019 2020 602-49450-210 $ 24,000 $ 24,000 OPERATING SUPPLIES 1,000 1,000 25,000 25,000 602-49450-216 $ 26,000 CHEMICAL SUPPLIES 10,000 Item Detail Operations & Preventative Maintenance Supplies on System / Lift Stations Operations & Maintenance Su Comments $ 30,000 Ferric Chloride - Phosphorous Removal New chemicals introduced to the budget with the operations of the East WWTF Biosolids Facility beginning operations in late 2020. 14,000 Polymer - Belt Thickening Process 15,000 Lime - Solids Processing 5,000 Polymer - Solids Processing - 36,000 64,000 602-49450-220 $ 15,000 R/M SUPPLIES 15,000 7,000 30,000 5,000 $ 15,000 East Wastewater Treatment Faciltiy Corrective Maintenance Repair and maintenance related to aging equipment and infrastucture. 15,000 West Wastewater Treatment Facility Corrective Maintenance 7,000 Lift Stations Corrective Maintenance 30,000 Collection System Corrective Maintenance (Ex. Chimney Replacements) 5,000 Equipment + Components Maintenance-DrainLiftStationEastWWTF 9,000 West WWTF - Odor Control Media Exchange 5,500 lWest Wastewater Treatment Facility - Influent Sampler 5,000 Landscaping & Screening 72,000 91,500 602-49450-225 $ 1,000 $ 1,200 Clothing Allowance = $400 x 6 Operators (50% Allocation UNIFORMS/CLOTHING ALLOWANCE 375 450 Boot Allowance = $150 x 6 Operators (50% Allocation) 150 150 Clothing Allowance = $150 x 2 Seasonal Operators (50% 1 60 150 Boot Allowance = $150 x 2 Seasonal Operators (50% Allo 1,585 1,950 602-49450-302 $ 25,000 ENGINEERING FEES 13,103 32,036 1,112,000 1,897 $ 25,000 General Sewer Engineering (Permit Review, Odor Mitigation, Instrumentation) - Hakanson Anderson - 85th Street & Maciver Avenue Forcemain Extension 16,018 Hakanson Anderson - Lift Station #7 Design & Construction Oversight 1,036,700 AE2S - East Solids Project Design & Construction Management and Oversight 36,500 Hakanson Anderson - Collection System Comprehensive Plan 782 Rounding Contingency+ Inflationary Factor 50,000West WWTF Liquid Capacity Expansion - Preliminary Planning 1,184,036 1,165,000 602-49450-306 $ 5,900 $ 5,900 MPCA -Municipal Permit Annual Fee -East WWTF PERMITS & FEES 1,450 1,450 MPCA -Municipal Permit Annual Fee -West WWTF 7,350 7,350 X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT 602 -Detail City of Otsego Enterprise Fund Budget - 2020 Detail of Line Item Requests Sanitary Sewer Utility Requested Budget Budget Account No. & Description 2019 2020 Item Detail / Description Comments 602-49450-320 $ 3,225 TELEPHONE 1,920 450 960 630 15 7,200 602-49450-360 EDUCATION/TRAINING/CONFERENCE 2,000 4,066 602-49450-390 $ 44,000 CONTRACTED SERVICES 43,573 4,924 10,000 1,700 2,200 4,500 5,000 2,500 $ 3,720 Employee Cell Phones ($55 x 6) + Replacement Phones ($1,000) - Allocated 75% 2,040 CenturyLink Internet + Phone Lines at Facilities ($170 Per Month) 450 Answering Service ($75 Monthly) - Allocated 50% 960 Land Line Telephone Service ($80 Monthly) 630 IPAD's ($35 x 2) - Allocated 75% - Rounding Contingency+ Inflationary Factor 7,800 603 $ 49,000 East & West WWTF Permit Required Certified Lab Analysis The City last conducted a third party Utility Rate Study in 2012. With completion of the Water and Sewer Master Plans and respective impacts on the future Capital Improvement Plans, Staff is recommending this be completed to ensure the rate structure is adequate. 45,993 Locates (Hakanson) - Based on 2017 - 2019 YTD Monthly Average + 5% 2,631 Locates (Gopher One) - Based on 2017 - 2019 YTD Monthly Average + 5% 10,000 Electrical 1,700 Security Monitoring (2 WWTF) + Parts & Maintenance 2,200 Lawn Services - Spraying 4,500 JEquipment inspections/Testing- Generators 5,000 Collection System Repairs 2,500 Mechanical - Heating & Air Conditioning 12,500 Utility Rate Study (Estimate from Ehlers) 300 800Mhz Infrastructure fees ($100 per radio) Wright County 20,000 Biosolids Material - Trucking & Landfill Tipping Fees 676 Rounding Contingency+ Inflationary Factor 119,0001 1 157,000 602-49450-501 $ 28,000 $ - Lift Station #1- Pump Replacement (#2 Replaced in 2018 / #1 Budgeted for EQUIPMENT 25,000 Lift Station #1- Programmable Logic Controller 53,000 602-49450-590 $ 100,000 REHABILITATION & REPLACEMENT 100,000 30,000 50,000 280,000 $ 200,000 jOngoing investment for costs of R&R as identified in Wastewater Treatment Master Plan. East WWTF - Odor Control Unit Replacement East WWTF -Pretreatment Channel Rehabilitation West WWTF - Aerator Gear Box Replacement 200,000 X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT 602 -Detail City of Otsego, Minnesota Capital Improvement Plan 2020 thru 2029 PROJECTS BY FUNDING SOURCE Source # Priority 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total 602 - Sanitary Sewer Utilitv 1 East WWTF - Dewatering & 602-2020-01 n/a 13,088,600 13,088,600 Chemical Stabilization Lift Station #7 - Construction 602-2020-02 n/a 339,513 339,513 Lift Station #3 - Pump Replacement 602-2021-01 n/a 45,000 45,000 West WWTF Liquids Capacity 602-2024-01 n/a 2,500,000 25,000,000 27,500,000 Expansion Lift Station - W2 District 602-2026-01 n/a 100,000 800,000 900,000 602 - Sanitary Sewer Utility Total 13,428,113 45,000 2,500,000 25,000,000 100,000 800,000 41,873,113 GRAND TOTAL 13,428,113 45,000 2,500,000 25,000,000 100,000 800,000 41,873,113 Wednesday, November 20, 2019 City of Otsego Storm Water Utility Fund Budget - 2020 Department Requests / 49490 - Storm Water Utility Fund (Out -of -District) Requested Account Number Actual Actual Year -to -Date Budget Budget Fund Department Source Account Description 2017 2018 2019 2019 2020 Revenues 220 49490 31010 CURRENT AD VALOREM TAXES TOTAL - OPERATING 220 49490 36210 INTEREST EARNINGS 220 49490 36213 NET CHANGE IN INVESTMENT FMV TOTAL - NON OPERATING TOTAL -REVENUES Expenses 20,500 21,000 Lump Sum - Replacement of Storm Water Culverts - 220 49490 292 CULVERTS TOTAL -SUPPLIES 30,968 1,266 1,644 5,500 6,000 25% of Culvert Costs - Engineering Oversight 220 49490 301 LEGAL SERVICES 220 49490 302 ENGINEERING FEES 202 49490 303 PLANNING FEES TOTAL - SERVICES & OTHER CHARGES rn 7mi 220 49490 500 CAPITAL OUTLAY (GENERAL) 220 49490 510 LAND ACCIUSITION/EASEMENTS 220 49490 530 IMPROVEMENTS OTHER THAN BLDG 220 49490 599 CAPTILAIZED ASSET OFFSET TOTAL - CAPITAL OUTLAY 220 49490 420 DEPRECIATION 220 49490 720 OPERATING TRANSFERS 220 49490 750 TRANSFER OUT - CAPITAL ASSETS TOTAL -OTHER TOTAL -EXPENSES NET INCOME / (LOSS) $ 25,000 $ 26,000 $ 15,000 $ 30,000 $ 32,000 25,000 26,000 15,000 30,000 32,000 1,474 15 - - - (613) (4) 861 11 25,861 26,011 15,000 30,000 32,000 Comments 114,655 114,655 - - - 115,921 1,644 26,500 27,500 $ 25,861 $ (89,910) $ 13,356 $ 3,500 $ 4,500 Change ($) 1,006 Change (%) 28.57% 20,500 21,000 Lump Sum - Replacement of Storm Water Culverts - 20,500 21,000 2,035 - - 500 500 30,968 1,266 1,644 5,500 6,000 25% of Culvert Costs - Engineering Oversight 200 - - - - 33,202 1,266 1,644 6,000 6,500 8,063 73,390 (114,655) rn 7mi 114,655 114,655 - - - 115,921 1,644 26,500 27,500 $ 25,861 $ (89,910) $ 13,356 $ 3,500 $ 4,500 Change ($) 1,006 Change (%) 28.57% City of Otsego imStorm Water Utility Fund Budget - 2020 Department Requests 49490 - Storm Water Utility Fund Account Number Fund Department Source Account Description Revenues 222 49490 37500 STORMWATER UTILITY CHARGES 222 49490 31900 PENALTIES AND INTEREST TOTAL - OPERATING 222 49490 36100 SPECIAL ASSESSMENTS 222 49490 36102 SPECIAL ASSESSMENTS - PENALTIES 222 49490 36210 INTEREST EARNINGS 222 49490 36213 NET CHANGE IN INVESTMENT FMV 222 49490 36231 CAPITAL CONTRIB. GOVT FUNDS 222 49490 36232 CAPITAL CONTRIB. DEVELOPERS 222 49490 38990 OTHER MISCELLANEOUS 222 49490 39250 TRANSFER IN - CAPITAL ASSETS TOTAL- NON OPERATING TOTAL -REVENUES Expenses 222 49490 119 PAYROLL ALLOCATION TOTAL -PERSONAL SERVICES 222 49490 220 REPAIRS/MAINTSUPPLIES TOTAL - SUPPLIES 222 49490 301 LEGAL SERVICES 222 49490 302 ENGINEERING FEES 222 49490 303 PLANNING FEES 222 49490 310 MISCELLANEOUS 222 49490 315 GIS SERVICES 222 49490 322 UTILITIES 222 49490 355 DUES & MEMBERSHIPS 222 49490 360 EDUCATION/TRANING/CONFERENCE 222 49490 361 LIABILITY AND PROPERTY INSURAN 222 49490 390 CONTRACTED SERVICES 222 49490 410 RENTALS 222 49490 441 LICENSES, TAXES & FEES TOTAL - SERVICES & OTHER CHARGES 222 49490 500 CAPITAL OUTLAY (GENERAL) 222 49490 510 LAND ACOUSITION/EASEMENTS TOTAL - CAPITAL OUTLAY 222 49490 420 DEPRECIATION 222 49490 720 OPERATING TRANSFERS TOTAL -OTHER TOTAL -EXPENSES Requested Actual Actual Year -to -Date Budget Budget 2017 2018 2019 2019 2020 Comments $ 61,540 $ 67,993 $ 70,067 $ 67,993 $ 72,112 Includes 0% Rate Increase - See Cash Flow - 2,017 1,992 - 10,000 61,540 70,010 72,059 67,993 72,112 33,379 34,906 20,044 33,329 33,205 Assessment Roll to Wright County 2,076 4,140 - - - (863) (1,190) - - - 526,448 393,330 - - - - 1,472,632 - - - 561,040 1,903,818 20,044 33,329 33,205 622,581 1,973,828 92,104 101,322 105,317 15,313 6,606 - 10,000 10,000 Reimbursement Allocation to Streets Department 15,313 6,606 - 10,000 10,000 727 - 2,122 2,500 2,500 Rip-Rap-Rock/Fabric 727 2,122 2,500 2,500 - - - 500 500 9,011 10,895 10,871 20,000 20,000 Annual Costs -Stormwater Pollution Prevention Plan (SWPPP; 50 - - - - - 320 - 1,000 1,000 760 760 783 800 800 LMC - Annual Stormwater Coalition Contribution - 750 - 1,000 1,000 - - 420 - 1,000 1,176 2,753 728 3,000 3,000 10,997 15,478 12,802 26,300 27,300 246 246 35,134 47,444 - 45,000 50,000 35,134 47,444 - 45,000 50,000 62,171 69,773 14,924 83,800 89,800 NET INCOME/(LOSS) $ 560,410 $ 1,904,055 $ 77,180 $ 17,522 $ 15,517 Change ($) (2,005) Change (%) -11.44% City of Otsego Property Tax Levy Calculations Payable 2019 Revised: November 20, 2019 As of 11-25-2019 Adopted Preliminary Levy Levy Description 2016 2017 2018 2019 2020 Change Change 2020 Change Change Comment General Revenues 3,529,352 3,766,000 3,986,000 4,210,000 4,518,000 308,000 7.32% 4,520,000 310,000 Tax Abatements 88,814 81,385 65,546 60,816 56,491 (4,325) -7.11% 56,491 (4,325) 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 Tax Capacity Growth (%) Net Tax Capacity Growth (%) Tax Rate Population Tax Levy Per Capita 225,000 225,000 215,000 205,000 195,000 (10,000) 195,000 (10,000) 415,000 430,000 440,000 450,000 460,000 10,000 460,000 10,000 - - - 79,293 91,758 12,465 91,758 12,465 640,000 655,000 655,000 734,293 746,758 12,465 1 1.70%1 746,758 12,465 44.414 0.32% 44.414 0.32% school District 39.266 36.659 339,200 475,960 600,000 800,000 950,000 150,000 950,000 150,000 25,250 26,000 30,000 32,000 33,000 1,000 33,000 1,000 54,590 55,000 56,000 58,000 60,000 2,000 60,000 2,000 168,000 235,200 242,256 260,000 280,000 20,000 280,000 20,000 150,000 150,000 160,000 170,000 180,000 10,000 180,000 10,000 25,000 25,000 26,000 30,000 32,000 2,000 32,000 2,000 - 160,200 282,500 355,000 318,000 (37,000) 316,000 (39,000) - - - - 20,000 20,000 20,000 20,000 762,040 1,127,360 1,396,756 1,705,000 1,873,000 168,000 9.85% 1,871,000 166,000 9.74% 5,020,206 5,629,745 6,103,302 6,710,109 7,194,249 484,140 7.22% 7,194,249 484,140 13,238,424 14,873,116 16,783,003 18,695,511 20,522,486 20,158,430 Updated per County on 10-25-2019 16.55% 12.35% 12.84% 11.40% 9.77% 7.82% 13,238,424 14,872,821 16,696,008 18,608,540 20,317,261 19,956,846 Estimated at 99% of Tax Capacity 16.55% 12.35% 12.26% 11.46% 9.18% 7.25% 37.921 37.852 36.556 36.060 35.410 36.049 14,968 15,472 16,019 16,605 17,323 17,323 335 364 381 404 415 415 Taxing 2016 2017 2018 2019 2020 247,859 2020 Less: MV Exclusion Authority Final Tax Rate Final Tax Rate Final Tax Rate Final Tax Rate Estimate Change Estimate Change :ity of Otsego 37.921 37.852 36.556 36.060 35.410 -1.80% 36.049 -0.03% Vright County 39.970 39.599 39.946 44.273 44.414 0.32% 44.414 0.32% school District 39.266 36.659 36.137 32.865 32.716 -0.45% 32.716 -0.45% 'school District - RMV 19.441 19.373 19.422 19.430 19.430 0.00% 19.430 0.00% Median Appraised Value 198,300 217,206 220,572 247,859 12.37% 247,859 12.37% Less: MV Exclusion (19,393) (17,691) (17,389) (14,933) (14,933) Taxable Market Value 178,907 199,515 203,183 232,926 14.64% 232,926 14.64% Tax Capacity 1,789 1,995 2,032 2,329 2,329 2017 2018 2019 2020 2020 Taxing Estimated Estimated Estimated Estimated Estimated Authority Tax Tax Tax Tax Change Tax Change City of Otsego 677 729 733 825 12.55% 840 14.60% Wright County 708 797 900 1,035 15.00% 1,035 15.00% School District 656 721 668 762 14.07% 762 14.07% School District- RMV 384 422 429 482 12.35% 482 12.35% Total 2,425 2,669 2,730 3,104 13.70% 3,119 14.25% Annual Increase 435 450 X:\Budget\2020\Property Taxes\Tax Levy Calculations 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. 11-25 City of Otsego Water Utility Fund Cash Flow Summary V Revised: November 20, 2019 Estimated Bill (15k Gallons) $ 36.16 $ 37.25 $ 38.37 $ 39.52 $ 40.70 $ 41.92 $ 43.18 $ 44.48 $ 45.81 $ 47.18 $ 48.60 (9,157,863) Rate Increase (Inflation) (9,739,899) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 649,459 Rate Increase (Adjustment) 675,697 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 8,048,071 $ Total Rate Increase (14,234,707) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Percentage of Cash Reserve on Hand Availability Charge $ 1,781 $ 1,813 $ 1,831 $ 1,849 $ 1,868 $ 1,886 $ 1,905 $ 1,924 $ 1,943 $ 1,963 $ 1,983 Connection Charge $ 1,781 $ 1,813 $ 1,831 $ 1,849 $ 1,868 $ 1,886 $ 1,905 $ 1,924 $ 1,943 $ 1,963 $ 1,983 Connection Fee Inflation 2.90% 1.77% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% New Customers 300 297 200 267 150 150 150 150 150 150 150 Forecast Budget Projected 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Comments Water Fund Operating $ 1,476,478 $ 1,654,866 $ 1,841,247 $ 1,991,324 $ 2,181,474 $ 2,322,379 $ 2,469,776 $ 2,623,927 $ 2,785,104 $ 2,953,590 $ 3,129,678 Assumes Inflation, Rate Adjustments & Customer Growth Non -Operating 190,131 205,952 207,452 208,952 210,452 211,952 213,452 214,952 216,452 217,952 219,452 Assumes Inflation Transfers In - - - - - - - - - - - Bond Proceeds - - 6,600,000 - 5,482,500 - - - - - - WAC Fund Connection Fees 1,041,826 453,250 457,750 462,250 466,750 471,500 476,250 481,000 485,750 490,500 495,500 Assumes Rate Adjustments Special Assessments 38,976 28,056 27,180 26,304 25,428 14,468 13,920 - - - - Investment Interest (Net) - - - - - - - - Transfers In - - - - - 200,351 346,025 363,013 - - - Assumes Subsidy from Sewer for Defict WAC Total 2,747,411 2,342,124 9,133,629 2,688,830 8,366,604 3,220,650 3,519,423 3,682,892 3,487,306 3,662,042 3,844,630 Expenses Personal Servcies 117,482 142,576 145,428 148,336 151,303 154,329 157,415 160,564 163,775 167,051 170,392 2020 Budget -Then 2% Inflation Supplies 229,189 250,742 255,757 260,872 266,089 271,411 276,839 282,376 288,024 293,784 299,660 2020 Budget -Then 2% Inflation Services & Other Charges 475,537 492,340 298,044 304,005 310,085 316,287 322,612 329,065 335,646 342,359 349,206 2020 Budget (Engineering Reduced) - Then 2% Inflation Depreciation 565,000 600,000 612,000 624,240 636,725 649,459 662,448 675,697 689,211 702,996 717,056 2020 Budget - Then 2% Inflation Capital Outlay - - - - - - - - - - - Capital Outlay (General) 116,600 750 - - - - - Capital Outlay (Fleet) - 10,000 10,500 - 11,000 11,500 - 137,000 12,810 - - DRAFT 2020-2029 CIP (ALLOCATED 25%) Capital Outlay (Current CIP) 200,000 2,305,788 6,470,000 460,000 6,532,500 - 120,000 70,000 97,000 1,820,000 24,000,000 DRAFT 2020-2029 CIP Capital Outlay (Collection) - 226,625 228,875 231,125 233,375 235,750 238,125 240,500 242,875 245,250 247,750 Assumed at 50% of WAC Revenue (Pending Master Plan) Capital Outlay (R & R Plan) 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Pending Result of Master Plan Debt Service (Existing) 1,951,470 1,032,532 1,035,297 1,042,196 1,050,071 895,694 853,655 852,941 - - - Based on Existing Bond Issues Debt Service (Projected) - - - 443,624 443,624 812,134 812,134 812,134 812,134 812,134 812,134 Based on Projected Bond Issues Transfers Out - General Fund 42,975 50,449 51,962 53,521 55,127 56,781 58,484 60,239 62,046 63,907 65,825 General Fund - Administrative Functions (Inflates 3%) Transfers Out - Jet Vac 8,200 - - - - - - - - - - Transfer to Debt Fund 399 - Jet Vac (80%) Total 3,756,453 5,161,802 9,157,863 3,617,919 9,739,899 3,453,345 3,551,714 3,670,516 2,753,521 4,497,481 26,712,022 Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Noncash - Depreciation Cash Balance - Ending 8,007,452 7,563,410 5,343,732 5,931,498 5,626,649 4,890,078 5,306,843 5,937,001 6,625,075 8,048,071 7,915,628 2,747,411 2,342,124 9,133,629 2,688,830 8,366,604 3,220,650 3,519,423 3,682,892 3,487,306 3,662,042 3,844,630 (3,756,453) (5,161,802) (9,157,863) (3,617,919) (9,739,899) (3,453,345) (3,551,714) (3,670,516) (2,753,521) (4,497,481) (26,712,022) 565,000 600,000 612,000 624,240 636,725 649,459 662,448 675,697 689,211 702,996 717,056 $ 7,563,410 $ 5,343,732 $ 5,931,498 $ 5,626,649 $ 4,890,078 $ 5,306,843 $ 5,937,001 $ 6,625,075 $ 8,048,071 $ 7,915,628 $ (14,234,707) Cash Balance Reserve Operating (3.5 Months of Next Year) 273,031 219,097 223,631 228,260 232,986 237,811 242,738 247,768 252,904 258,149 Capital (100% of Next Year Less Bond Projects) 2,593,163 6,759,375 741,125 6,826,875 297,250 408,125 497,500 402,685 2,115,250 24,297,750 Debt Service (100% of Next Year) 1,032,532 1,035,297 1,485,820 1,493,695 1,707,828 1,665,789 1,665,075 812,134 812,134 812,134 Total Cash Reserve Recommendation 3,898,726 8,013,769 2,450,576 8,548,830 2,238,064 2,311,725 2,405,313 1,462,587 3,180,288 25,368,033 Percentage of Cash Reserve on Hand 194.00% 66.68% 242.05% 65.82% 218.50% 229.56% 246.83% 452.97% 253.06% 31.20% X:\Budget\2020\Cash Flows\Utility Funds Combined Water City of Otsego, Minnesota Capital Improvement Plan 2020 thru 2029 PROJECTS BY FUNDING SOURCE Source # Priority 2020 2021 2022 2023 2024 2025 601 - Water Utility 800,000 Well #9 - New Municipal Well 601-2020-01 n/a Water Tower#2 Reconditioning 601-2020-02 n/a Water Tower #4 601-2021-01 n/a Well #3 Improvements 601-2021-02 n/a Well #2 Improvements 601-2022-01 n/a East & West System Connection 601-2023-01 n/a Well #10 - New Municipal Well 601-2023-02 n/a Well #8 Improvements 601-2025-01 n/a Well #6 Improvements 601-2026-01 n/a Well #5 Improvements 601-2027-01 n/a Well #7 Improvements 601-2028-01 n/a Water Tower#3 Reconditioning 601-2028-02 n/a Water Treatment - Well House #4 601-2029-01 n/a Water Treatment - Well House #3 601-2029-02 n/a Water Treatment - Well House #2 601-2029-03 n/a Water Treatment - Well House #1 601-2029-04 n/a CSAH 38 & CSAH 19 - Local Share STREET -20-04 n/a 601 - Water Utility Total GRAND TOTAL 800,000 951,500 300,000 6,300,000 120,000 60,000 50,000 200,000 5,232,500 200,000 1,300,000 254,288 2026 2027 2028 2029 Total 2,305,788 800,000 460,000 951,500 120,000 6,600,000 97,000 120,000 24,000,000 60,000 2,305,788 5,482,500 460,000 1,500,000 120,000 120,000 70,000 70,000 70,000 70,000 70,000 70,000 27,000 1,750,000 1,777,000 3,000,000 3,000,000 3,000,000 3,000,000 9,000,000 9,000,000 9,000,000 9,000,000 254,288 2,305,788 6,470,000 460,000 6,532,500 120,000 70,000 97,000 1,820,000 24,000,000 41,875,288 2,305,788 6,470,000 460,000 6,532,500 120,000 70,000 97,000 1,820,000 24,000,000 41,875,288 Wednesday, November 20, 2019 City of Otsego Enterprise Fund Budget - 2020 Department Requests Water Utility 49400 - Water Utilitv Fund Account Number Fund Department Source Account Description Revenues 601 49400 37150 WATER SALES 601 49400 37155 WATER SALES - IRRIGATION 601 49400 37160 WATER NSF 601 49400 31900 PENALTIES AND INTEREST TOTAL - OPERATING 601 49400 33422 OTHER STATE AID GRANTS 601 49400 33424 OTHER GRANTS 601 49400 34109 OTHER ADMINISTRATIVE CHARGES 601 49400 34302 WATER METERS 601 49400 36100 SPECIAL ASSESSMENTS 601 49400 36102 SPECIAL ASSESSMENTS -P&I 601 49400 36210 INTEREST EARNINGS 601 49400 36213 NET CHANGE IN INVESTMENT FMV 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS 601 49400 37165 WATERTOWER RENTALS -ANTENNAS 601 49400 37170 DNR FEES FOR STATE 601 49400 38990 OTHER MISCELLANEOUS 601 49400 38991 REFUNDS & REIMBURSEMENTS 601 49400 39101 SALES OF FIXED ASSETS 601 49400 39250 TRANSFERIN- CAPITALASSETS TOTAL - NON OPERATING TOTAL -REVENUES Expenses 73,902 65,753 78,355 601 49400 101 FULL-TIME EMPLOYEES REGULAR 601 49400 102 WAGES - FT OVERTIME 601 49400 104 WAGES - PT EMPLOYEES 601 49400 119 PAYROLL ALLOCATION 601 49400 121 PERA 601 49400 122 FICA AND MEDICARE 601 49400 123 HEALTH 601 49400 130 OTHER EMPLOYER PAID INS 601 49400 150 WORKERS COMPENSATION 601 49400 191 GERF PENSION EXPENSE TOTAL -PERSONAL SERVICES 6,366 3,794 601 49400 201 OFFICE SUPPLIES AND EXPENSES 601 49400 202 FUEL 601 49400 206 POSTAGE 601 49400 210 OPERATING SUPPLIES 601 49400 216 CHEMICAL SUPPLIES 601 49400 220 REPAIRS/MAINTSUPPLIES 601 49400 225 UNIFORMS/CLOTHING ALLOWANCE 601 49400 227 SAFETY SUPPLIES 601 49400 228 UTILITY SYSTEM SUPPLIES 601 49400 240 SMALL TOOLS/EQUIPMENT 601 49400 298 W/S FLEET EXPENSES TOTAL - SUPPLIES Requested Actual Actual Year -to -Date Budget Budget 2017 2018 2019 2019 2020 $ 1,069,193 $ 1,196,441 $ 1,186,354 $ 1,299,436 $ 1,295,461 161,762 169,624 156,748 154,000 167,000 60 90 30 - - 42,528 50,748 50,575 44,000 49,000 1,273,542 1,416,903 1,393,707 1,497,436 1,511,461 - - 10,000 - - - - 2,500 9,550 12,250 9,725 - - 87,189 129,457 90,671 64,800 83,700 68,440 85,555 46,136 - - 79,727 93,239 (33,147) (26,795) 936,570 500,100 - - - 67,215 73,287 76,579 76,000 82,400 21,147 22,464 24,422 24,168 39,852 - 1,233 1,166 - - 2,044 13,798 4,713 - 4,603 - 40,830 81,593 - - - 1,279,565 990,782 265,912 164,968 205,952 2,553,107 2,407,685 1,659,618 1,662,404 1,717,413 68,527 73,902 65,753 78,355 94,557 2,791 4,789 4,162 3,750 3,750 - 3,224 4,832 7,800 8,580 5,301 5,810 5,232 6,158 7,373 5,200 5,986 5,410 6,878 8,177 9,933 10,625 10,906 10,955 16,445 2,932 3,307 5,393 3,586 3,694 10,176 1,408 - - - 104,859 109,050 101,689 117,482 142,576 3,955 3,630 4,106 4,000 4,250 2,145 3,029 11 2,918 3,668 7,829 6,233 6,289 10,716 12,300 3,597 1,224 1,408 7,000 7,000 78,885 95,980 70,471 93,150 109,500 32,522 16,686 20,928 25,500 15,000 1,160 1,140 698 1,585 1,950 60 1,534 145 1,800 1,800 70,399 119,621 110,336 74,520 87,274 2,014 6,366 3,794 5,000 5,000 1,025 1,572 - 3,000 3,000 203,592 257,015 218,185 229,189 250,742 Comments Includes 3% Rate Increase - See Cash Flow Estimated - Represents Average of Actuals for 2017-2019 (YTD) Estimated - Represents Average of Actuals for 2017-2019 (YTD) 225 Meters at $372 (Cost of $342 + 1 HR Admin Time $30) Tower #1(Sprint/Verizon) and Tower #3 (Nextera) Estimated 4,100 Accounts at $9.72 (Actual is 3,945 as of 10/11/2019) Based on Actual 2019-2020 Premiums + 3% Inflation Allocated 25% of 4,890 Gallons (2018 Actual) at $3.00 (Same Rate as Fleet) Allocated 50% of Monthly Bill Mailings (4,100 Accounts at $0.50) Operational & Preventative Maintenance Items See Detailed Attachment See Detailed Attachment See Detailed Attachment Purchase of 255 Meters (225 New Construction + 30 Replacements) X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT Water Fund City of Otsego Enterprise Fund Budget - 2020 Department Requests Water Utility Account Number Fund Department Source Account 49400 - Water Utilitv Fund Requested Actual Actual Year -to -Date Budget Budget 2017 2018 2019 2019 2020 601 49400 301 LEGAL SERVICES 340 - 225 500 500 601 49400 302 ENGINEERING FEES 145,430 37,175 153,334 240,503 218,140 601 49400 303 PLANNING FEES - 200 825 - - 601 49400 306 PERMITS & FEES 28,381 31,274 26,679 34,568 50,252 601 49400 315 GIS SERVICES 1,397 3,339 1,183 4,000 4,000 601 49400 320 TELEPHONE 3,601 3,970 3,173 4,100 4,300 601 49400 321 MILEAGE/TRAVEL 120 72 278 400 400 601 49400 322 UTILITIES 79,554 101,180 69,866 82,000 88,000 601 49400 350 PRINT & PUBLISHING - 88 88 300 300 601 49400 355 DUES & MEMBERSHIPS 383 426 431 465 465 601 49400 360 EDUCATION/TRAINING/CONFERENCES 1,090 1,375 2,253 2,689 2,543 601 49400 361 LIABILITY AND PROPERTY INSURAN 9,836 10,119 17,712 10,197 10,225 601 49400 375 WATER TEST FEE - - - - - 601 49400 390 CONTRACTED SERVICES 61,870 69,602 51,861 87,000 102,300 601 49400 402 REPAIRS/MAINT BUILDINGS 4,200 - - - - 601 49400 410 RENTALS 1,020 1,465 1,516 1,465 1,465 601 49400 430 MISCELLANEOUS - - - - - 601 49400 437 BANK SERVICE CHARGES 7,517 9,725 8,618 7,350 9,450 TOTAL - SERVICES & OTHER CHARGES 344,740 270,011 338,041 475,537 492,340 601 49400 500 CAPITAL OUTLAY (GENERAL) - 419 9,540 9,000 750 601 49400 501 EQUIPMENT 50,149 12,220 87,487 107,600 - 601 49400 530 IMPROVEMENTS OTHER THAN BLDG 1,476,309 129,779 86,932 1,100,000 2,305,788 601 49400 550 MOTOR VEHICLES 10,705 35,959 - - 10,000 601 49400 590 REHABILITATION & REPLACEMENT - - 50,000 50,000 601 49400 599 CAPITALIZED ASSET OFFSET (1,641,313) (200,143) - - TOTAL - CAPITAL OUTLAY (104,150) (21,766) 183,959 1,266,600 2,366,538 601 49400 420 DEPRECIATION 506,191 545,150 - 565,000 600,000 601 49400 602 BOND INTEREST - - - - - 601 49400 720 OPERATING TRANSFERS 148,561 143,380 144,989 144,995 71,345 TOTAL - OTHER 654,752 688,530 144,989 709,995 671,345 TOTAL - EXPENSES 1,203,794 1,302,839 986,862 2,798,803 3,923,541 NET INCOME / (LOSS) $ 1,349,313 $ 1,104,846 $ 672,756 $ (1,136,399) $ (2,206,128) Comments See Detailed Attachment See Detailed Attachment See Detailed Attachment Estimated - Represents Average of Actuals for 2017-2019 (YTD) Statutory Publish Requirements (Budget & Financial Statements) See Detailed Attachment See Detailed Attachment Based on Actual 2019-2020 Premiums See Detailed Attachment Lease Payments - Utility Bill Folding + Envelope Stuffing Machine Estimated - Represents Average of Actuals for 2017-2019 (YTD) + 5% Computer Replacement (Kurt) + Computer Addition (Seth) See Detailed Attachment Draft 2020-2029 CIP Fleet CIP - Addition of 3/4 Ton Pickup (Allocated 25%) See Detailed Attachment Increase to account for depreciation on Well q9 & Developer Assets General Fund ($50,449) + WAC Debt ($20,896) X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT Water Fund City of Otsego Enterprise Fund Budget - 2020 Detail of Line Item Requests Water Utility Budget Account No. & Description 2019 601-49400-216 $ 6,900 CHEMICAL SUPPLIES 75,900 10,350 93,150 601-49400-220 $ 15,000 R/M SUPPLIES 6,000 2,500 2,000 Requested Budget 2020 Item Detail / Description Comment $ 15,000 Corrective Maintenance Items (Ex. Chemical Pumps, Valves, Hydrant Parts, Repairs) Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically, or now accounted for in Object #590 as Replacement and Rehabilitation costs. - Well House #1- Chlorine Feed System Towers #2 / #3 - Replace Omni Antennas SCADA Communication Radio $ 1,000 601-49400-302 $ 15,000 ENGINEERING FEES 13,103 96,000 96,000 18,000 2,400 240,503 601-49400-306 $ 24,168 PERMITS & FEES 10,000 400 34,568 601-49400-320 $ 1,075 TELEPHONE 1,920 450 360 210 85 4,100 $ 18,000 General Water Engineering - Hakanson Anderson - 85th Street & Maciver Avenue Watermain Extension - AE2S - Water Master Plan 96,000 Hakanson Anderson - Exploratory Well & New Well Design 104,140 KLM - Water Tower #2 Reconditioning - Construction Management & Observation - KLM - Water Tower #1 - Warranty Inspection 2 $ 39,852 Minnesota Department of Health Testing ($9.72 at 4,100 Accounts) Minnesota DOH Fee increased from $6.36 to $9.72. 10,000 DNR - Water Usage 400 Tier II Permits (4 @ $100) 50,252 $ 1,240 Employee Cell Phones ($55 x 6) + Replacement Phones ($1,000) - Allocated 25% 2,040 Centuryl-ink Internet+ Phone Lines at Facilities ($170 Per Month) 450 Answering Service ($75 Monthly) - Allocated 50% 360 Land Line Telephone Service ($30 Monthly) 210 IPAD's ($35 x 2) - Allocated 25% - Rounding Contingency+ Inflationary Factor 4,300 X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT 601 -Detail 25,500 15,000 601-49400-225 $ 1,000 $ 1,200 Clothing Allowance = $400 x 6 Operators (50% Allocation) UNIFORMS/CLOTHING ALLOWANCE 375 450 Boot Allowance = $150 x 6 Operators (50% Allocation) 150 150 Clothing Allowance= $150x 2 Seasonal Operators (50%AI 60 150 Boot Allowance= $150 x 2 Seasonal Operators (50%Alloc[ 7,585 1,950 601-49400-302 $ 15,000 ENGINEERING FEES 13,103 96,000 96,000 18,000 2,400 240,503 601-49400-306 $ 24,168 PERMITS & FEES 10,000 400 34,568 601-49400-320 $ 1,075 TELEPHONE 1,920 450 360 210 85 4,100 $ 18,000 General Water Engineering - Hakanson Anderson - 85th Street & Maciver Avenue Watermain Extension - AE2S - Water Master Plan 96,000 Hakanson Anderson - Exploratory Well & New Well Design 104,140 KLM - Water Tower #2 Reconditioning - Construction Management & Observation - KLM - Water Tower #1 - Warranty Inspection 2 $ 39,852 Minnesota Department of Health Testing ($9.72 at 4,100 Accounts) Minnesota DOH Fee increased from $6.36 to $9.72. 10,000 DNR - Water Usage 400 Tier II Permits (4 @ $100) 50,252 $ 1,240 Employee Cell Phones ($55 x 6) + Replacement Phones ($1,000) - Allocated 25% 2,040 Centuryl-ink Internet+ Phone Lines at Facilities ($170 Per Month) 450 Answering Service ($75 Monthly) - Allocated 50% 360 Land Line Telephone Service ($30 Monthly) 210 IPAD's ($35 x 2) - Allocated 25% - Rounding Contingency+ Inflationary Factor 4,300 X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT 601 -Detail City of Otsego Enterprise Fund Budget - 2020 Detail of Line Item Requests Water Utility Budget Account No. & Description 2019 601-49400-355 $ 125 DUES & MEMBERSHIPS 275 65 465 601-49400-360 $ 689 EDUCATION /TRAINING/ CONFERENCE 2,000 2,689 601-49400-390 CONTRACTED SERVICES 601-49400-501 $ 15,000 EQUIPMENT 6,500 26,200 26,200 12,200 21,500 107,600 Requested Budget 2020 Item Detail / Description Comment 125 Minnesota Municipal Utilities Association -Allocated 25% 275 Minnesota Rural Water Association 65 Suburban Utility Superintendent's Association - Allocated 50% 465 $ 45,993 Locates (Hakanson) - Based on 2017 - 2019 YTD Monthly Average + 5% The City last conducted a third party Utility Rate Study in 2012. With completion of the Water and Sewer Master Plans and respective impacts on the future Capital Improvement Plans, Staff is recommending this be completed to ensure the rate structure is adequate. 2,631 Locates (Gopher One) - Based on 2017 - 2019 YTD Monthly Average + 5% 10,000 Electrical 2,500 Itron Service Agreement 2,900 Security Monitoring (3 Water Towers + Booster Station) + Parts & Maintenance 1,200 Lab Testing 500 Pavement Management & Lawn Services - Spraying 5,000 Equipment inspections/testing - Generator/ Meters/RPZ 15,000 Distribution Repairs 1,000 Mechanical - Heating & Air Conditioning 250 VFD Inspections & Preventative Maintenance 300 800Mhz Infrastructure fees ($100 per radio) Wright County 15,000 1 Utility Rate Study (Estimate from Ehlers) 26 Rounding Contingency + Inflationary Factor 601-49400-590 $ 50,000 $ REHABILITATION & REPLACEMENT 50,000 102,300 Well #6 - VFD Replacement Well #4 - VFD Installation Programmable Logic Controller - Wellhouse #1 Programmable Logic Controller - Wellhouse #3 Programmable Logic Controller - Water Tower #3 Programmable Logic Controller - Well #8 investment for costs of R&R - Anticipated from Water Master Plan. X:\Budget\2020\Utility Funds\2020 UTILITY BUDGETS INPUT 601 -Detail