Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
ITEM 2 Budget Meeting #3
I OtCITY QF a MINNO50TA TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: June 22, 2020 SUBJECT: Budget Meeting #3 On Monday, Council and staff will continue the 2021 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 Lew — Capital Reserves 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. 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 $1.8 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. 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. 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. City of Otsego 113400 90' Street NE, Otsego, MN 553301 Tel. (763) 441-4414 Fax (763) 441-9163 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 $394 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. 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. 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. 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. City Buildings & Property Maintenance This fund accounts for the accumulation of resources to finance City buildings and property maintenance projects. Fund Balance Policy — Calculation of Transfer The City's fund balance policy outlines that the ending fund balance in the General Fund should be 45% of the subsequent years budget. The policy further outlines that any balance more than the defined 45% minimum, can be transferred to a capital reserve fund at the Council's discretion. Other Discussion Items City staff will review the status of the following funds with the Council. Community Facilities Collector Streets Reconstruction Odean Avenue Improvements Slabtown Improvements Next Meetings July 27 — At this meeting, staff and Council will be reviewing the detailed line -item budgets for General fund revenues and department expenditures. August 10 — At this meeting, staff and Council will be reviewing the detailed line -item budgets for General fund revenues and department expenditures. Materials Attached for Discussion 1) Cash Flow Projections 2) Tax Levy Summary 3) Fund Balance Transfer Calculation 4) Trial Balance Reports (Funds 413 and 431) City of Otsego 113400 90" Street NE, Otsego, MN 553301 Tel. (763) 441-4414 Fax (763) 441-9163 City of Otsego Pavement Management Fund Combined - All Project Types Cash Flow Summary w Revised: June 15, 2020 18.75% 10.53% 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-MSA) Transfers Out Total 9.52% 8.70% 6.00% 5.66% 5.36% 5.08% 4.84% 4.62% 4.41% Actual Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $ 800,000 $ 950,000 $ 1,050,000 $ 1,150,000 $ 1,250,000 $ 1,325,000 $ 1,400,000 $ 1,475,000 $ 1,550,000 $ 1,625,000 $ 1,700,000 $ 1,775,000 217,949 251,422 252,679 253,943 255,212 256,488 257,771 259,060 260,355 261,657 262,965 264,280 62,870 62,870 - - - - - - - - - - 29,396 - - - - - - - - - 20,964 24,123 23,398 22,094 18,777 18,230 12,956 8,360 - - - - - 29,646 71,499 114,932 111,565 143,556 156,408 215,476 224,885 254,827 1,110,215 2,267,384 1,326,802 1,456,987 1,598,805 1,715,197 1,787,566 1,890,572 1,975,123 2,102,133 2,187,850 2,294,107 28,808 328,982 - - - - - - - - - - - - 471,610 749,703 1,007,627 1,341,590 1,137,555 595,351 939,274 1,509,492 430,149 691,294 887,365 - 789,108 1,626,298 654,226 - 505,049 246,116 913,350 230,066 529,926 549,414 100,958 - - 374,858 - - - - 1,648,693 296,878 1 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 PENDING - FROM FUND #209 2020-2029 CIP / 2030 = 10 YR AVG 2020-2029 CIP / 2030 = 10 YR AVG 2020-2029 CIP / 2030 = 10 YR AVG 357,790 471,610 1,639,769 2,633,925 1,995,816 1,512,413 1,100,400 1,185,390 2,422,842 660,215 2,869,913 1,733,657 Average = $1,578,247 (PY = $1,578,247) Cash Balance - Beginning 2,409,330 3,199,088 4,994,862 4,681,895 3,504,957 3,107,946 3,310,730 3,997,896 4,703,077 4,255,358 5,697,276 5,015,213 Balance Sheet Effects 37,333 Revenues 1,110,215 2,267,384 1,326,802 1,456,987 1,598,805 1,715,197 1,787,566 1,890,572 1,975,123 2,102,133 2,187,850 2,294,107 Expenditures (357,790) (471,610) (1,639,769) (2,633,925) (1,995,816) (1,512,413) (1,100,400) (1,185,390) (2,422,842) (660,215) (2,869,913) (1,733,657) Cash Balance - Ending $ 3,199,088 $ 4,994,862 $ 4,681,895 $ 3,504,957 $ 3,107,946 $ 3,310,730 $ 3,997,896 $ 4,703,077 $ 4,255,358 $ 5,697,276 $ 5,015,213 $ 5,575,663 Cash Balance - % of Next Year Capital 678% 305% 178% 176% 205% 301% 337% 194% 645% 199% 289% X:\Budget\2021\Cash Flows\Capital Funds COMBINED City of Otsego Pavement Management Fund Combined - All Project Types (+ Franchise Fees) Cash Flow Summary w Revised: June 15, 2020 10.53%-33.33% 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-MSA) Transfers Out Total 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00% 4.76% Actual Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $ 800,000 $ 950,000 $ 1,050,000 $ 700,000 $ 750,000 $ 800,000 $ 850,000 $ 900,000 $ 950,000 $ 1,000,000 $ 1,050,000 $ 1,100,000 - - 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 723,276 - - (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) (38,400) 217,949 251,422 252,679 253,943 255,212 256,488 257,771 259,060 260,355 261,657 262,965 264,280 62,870 62,870 - - - - - - - - - - 29,396 - - - - - - - - - 20,964 20,417 19,871 19,324 18,777 18,230 12,956 8,360 1,110,215 2,267,384 2,007,972 1,658,690 1,709,412 1,760,141 1,810,877 1,856,892 1,903,591 1,946,533 1,997,841 2,049,156 28,808 328,982 - - - - - - - - - - - - 471,610 749,703 1,007,627 1,341,590 1,137,555 595,351 939,274 1,509,492 430,149 691,294 887,365 - 789,108 1,626,298 654,226 - 505,049 246,116 913,350 230,066 529,926 549,414 100,958 - - 374,858 - - - - 1,648,693 296,878 357,790 471,610 1,639,769 2,633,925 1,995,816 1,512,413 1,100,400 1,185,390 2,422,842 660,215 2,869,913 1,733,657 2 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 PENDING - FROM FUND #209 2020-2029 CIP / 2030 = 10 YR AVG 2020-2029 CIP / 2030 = 10 YR AVG 2020-2029 CIP / 2030 = 10 YR AVG Average = $1,578,247 (PY = $1,578,247) Cash Balance - Beginning 2,409,330 3,199,088 4,994,862 5,363,065 4,387,830 4,101,426 4,349,154 5,059,631 5,731,132 5,211,881 6,498,199 5,626,127 Balance Sheet Effects 37,333 Revenues 1,110,215 2,267,384 2,007,972 1,658,690 1,709,412 1,760,141 1,810,877 1,856,892 1,903,591 1,946,533 1,997,841 2,049,156 Expenditures (357,790) (471,610) (1,639,769) (2,633,925) (1,995,816) (1,512,413) (1,100,400) (1,185,390) (2,422,842) (660,215) (2,869,913) (1,733,657) Cash Balance - Ending $ 3,199,088 $ 4,994,862 $ 5,363,065 $ 4,387,830 $ 4,101,426 $ 4,349,154 $ 5,059,631 $ 5,731,132 $ 5,211,881 $ 6,498,199 $ 5,626,127 $ 5,941,626 Cash Balance - % of Next Year Capital 678% 305% 204% 220% 271% 395% 427% 237% 789% 226/ ° 325/ Difference in Tax Levy $ - $ - $ - $ 450,000 $ 500,000 $ 525,000 $ 550,000 $ 575,000 $ 600,000 $ 625,000 $ 650,000 $ 675,000 Levy Savings of $5.15M over 10 Years X:\Budget\2021\Cash Flows\Capital Funds COMBINED-FF City of Otsego Trail Management Fund Cash Flow Summary Revised: June 15, 2020 Revenues Property Taxes Intergovernmental Investment Interest Miscellaneous Transfers In Total Expenses Engineering Other Charges & Services Capital Outlay Capital Outlay (CIP-Maintenance) Capital Outlay (CIP-Renewal) Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending 3 Actual 2019 3.13% Forecast I 2020 3.03% 2021 2.94% 2022 2.86% 2023 2.78% 2024 2.70% 2.63% Projection - Capital Improvement Plan 2025 2026 2.56% 2027 2.50% 2028 2.44% 2029 2.38% 2030 Comments $ 32,000 $ 33,000 $ 34,000 $ 35,000 $ 36,000 $ 37,000 $ 38,000 $ 39,000 $ 40,000 $ 41,000 $ 42,000 $ 43,000 172 - - - - - - - - - - - - - - - - POTENTIAL TRANSFER 32,172 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 425 - - - - - - - - - - - 31,351 - - - - - - - - - - - - 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 DRAFT 2021-2030 CIP - - - - - - - - - - - - COST ESTIMATES IN DEVELOPMENT 31,776 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 3,765 2,561 3,561 4,561 5,561 6,561 7,561 8,561 9,561 10,561 11,561 12,561 (1,600) 32,172 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 (31,776) (32,000) (33,000) (34,000) (35,000) (36,000) (37,000) (38,000) (39,000) (40,000) (41,000) (42,000) $ 2,561 $ 3,561 $ 4,561 $ 5,561 $ 6,561 $ 7,561 $ 8,561 $ 9,561 $ 10,561 $ 11,561 $ 12,561 $ 13,561 X:\Budget\2021\Cash Flows\Capital Funds 202-Trail Management City of Otsego 4 Park Equipment Fund Cash Flow Summary V Revised: June 15, 2020 3.33% 3.23% 3.13% 3.03% 2.94% 2.86% 2.78% 2.70% 2.63% 2.56% Actual Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Comments Revenues Property Taxes $ 58,000 $ 60,000 $ 62,000 $ 64,000 $ 66,000 $ 68,000 $ 70,000 $ 72,000 $ 74,000 $ 76,000 $ 78,000 $ 80,000 Investment Interest 13,798 - - - - - - - - - - - Miscellaneous 24,341 14,008 - - - - - - Transfers In - - - - - - - - - - - - Total 96,139 74,008 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 Expenses Supplies - - - - - - - - - - - - Other Charges & Services - - - - - - - - - - Capital Outlay 7,300 - - - - - - - - Capital Outlay (CIP) - - - - 315,000 - - - - - 102,000 843,055 DRAFT 2021-2030 CIP Transfers Out - - - - - - - - - - - - Total 7,300 - - - 315,000 - - - - - 102,000 843,055 Cash Balance - Beginning 328,599 424,738 498,746 560,746 624,746 375,746 443,746 513,746 585,746 659,746 735,746 711,746 Balance Sheet Effects 7,300 Revenues 96,139 74,008 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 Expenditures (7,300) - - - (315,000) - - - - - (102,000) (843,055) Cash Balance - Ending $ 424,738 $ 498,746 $ 560,746 $ 624,746 $ 375,746 $ 443,746 $ 513,746 $ 585,746 $ 659,746 $ 735,746 $ 711,746 $ (51,309) X:\Budget\2021\Cash Flows\Capital Funds 205-Park Equipment City of Otsego 5 Capital Equipment Revolving Fund Cash Flow Summary Revised: June 15, 2020 7.69% 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00% 4.76% 4.55% 4.35% Actual Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Comments Revenues Property Taxes $ 260,000 $ 280,000 $ 300,000 $ 320,000 $ 340,000 $ 360,000 $ 380,000 $ 400,000 $ 420,000 $ 440,000 $ 460,000 $ 480,000 Investment Interest 16,179 - - - - - - - - - - - Sales of Fixed Assets 68,378 - - - - - - - - - Sales of Fixed Assets (Est.) - 16,200 - - - - - - - - - Utility Fund Contributions - 40,000 42,000 - 44,000 46,000 - 548,000 51,240 - Transfers In - - - - - - - - - - - - Total 344,557 336,200 342,000 320,000 384,000 406,000 380,000 948,000 471,240 440,000 460,000 480,000 Expenses Personal Services - - - - - - - - - - - - Supplies - - - - - - - - Other Charges & Services - - - - - - - Capital Outlay - General - - - - - - - Capital Outlay - Streets 467,864 - - - - - - Capital Outlay - Parks 81,583 - - - - - - - - - - - Capital Outlay (Fleet CIP) - 403,354 361,500 208,400 255,360 422,695 386,800 669,000 362,994 398,210 472,800 394,111 2020-2029 CIP / 2030 = 10 YR AVG Transfers Out - - - - - - - - - - - - Total 549,447 403,354 361,500 208,400 255,360 422,695 386,800 669,000 362,994 398,210 472,800 394,111 Average = $407,056 Cash Balance - Beginning 586,561 394,536 228,130 208,630 320,230 448,870 432,175 425,375 704,375 812,621 854,411 841,611 Balance Sheet Effects 12,865 (99,252) Revenues 344,557 336,200 342,000 320,000 384,000 406,000 380,000 948,000 471,240 440,000 460,000 480,000 Expenditures (549,447) (403,354) (361,500) (208,400) (255,360) (422,695) (386,800) (669,000) (362,994) (398,210) (472,800) (394,111) Cash Balance - Ending $ 394,536 $ 228,130 $ 208,630 $ 320,230 $ 448,870 $ 432,175 $ 425,375 $ 704,375 $ 812,621 $ 854,411 $ 841,611 $ 927,500 Cash Balance - % of Next Year Capital 98% 63% 100% 125% 106% 112% 64% 194% 204% 181% 214% X:\Budget\2021\Cash Flows\Capital Funds 206-Capital Equipment City of Otsego Fire Reserves Fund Cash Flow Summary r Revised: June 15, 2020 Actual Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Revenues Property Taxes $ 170,000 $ 180,000 $ 190,000 $ 200,000 $ 210,000 $ 220,000 $ 230,000 $ - $ - $ - $ - $ Property Taxes (Debt Service) - - - - - - - 488,847 488,847 488,847 488,847 488,847 Special Assessments 268 - - - - - Investment Interest 71,955 Intergovernmental - - Miscellaneous - - 574,252 Debt Issuance - 5,000,000 - Transfers In - - - - - - - - - - - - Total 242,223 180,000 190,000 200,000 210,000 220,000 5,230,000 488,847 488,847 488,847 488,847 1,063,100 Expenses Fire Study 750 Other Charges & Services 20,375 - Capital Outlay (Land) 1,079,515 200,000 - Capital Outlay (Equipment) - - - 1,926,400 Capital Outlay (Building) 100,000 2,587,000 - - - - - Debt Service - - - 465,569 465,569 465,569 465,569 465,569 Transfers Out - - - - - - - - - Total 1,100,640 - 200,000 - - 100,000 4,513,400 465,569 465,569 465,569 465,569 465,569 Cash Balance - Beginning 2,416,123 1,557,706 1,737,706 1,727,706 1,927,706 2,137,706 2,257,706 2,974,306 2,997,584 3,020,863 3,044,141 3,067,420 Balance Sheet Effects Revenues 242,223 180,000 190,000 200,000 210,000 220,000 5,230,000 488,847 488,847 488,847 488,847 1,063,100 Expenditures (1,100,640) - (200,000) - - (100,000) (4,513,400) (465,569) (465,569) (465,569) (465,569) (465,569) Cash Balance - Ending $ 1,557,706 $ 1,737,706 $ 1,727,706 $ 1,927,706 $ 2,137,706 $ 2,257,706 $ 2,974,306 $ 2,997,584 $ 3,020,863 $ 3,044,141 $ 3,067,420 $ 3,664,950 Fol Comments Levy at 105% of Debt Service Sale of Excess Property - Odean & 75th $5M - 15 Year Bond @ 4.5% Interest Acquisition of Fire Station #3 Parcel 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\2021\Cash Flows\Capital Funds 214-Fire Reserve City of Otsego Capital Improvements Fund Cash Flow Summary 7 Revised: June 15, 2020 Revenues Property Taxes Intergovernmental Special Assessments Special Assessments (Levied) Investment Interest Interfund Loan Payments County Abatement Payments Sales of Capital Assets Miscellaneous Transfers In Total Expenses Capital Outlay - General Capital Outlay - Public Safety Capital Outlay - Public Works Capital Outlay - Parks Capital Outlay - Econ Dev Capital Outlay (IT CIP) Capital Outlay (Streets CIP) Capital Outlay (County CIP) Capital Outlay (Property CIP) Development Incentives Transfers Out Total Cash Balance - Beginning Balance Sheet Effects Revenues Expenditures Cash Balance - Ending Actual Forecast I Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $ 355,000 $ 318,000 $ 386,000 $ - $ $ - $ $ - $ $ - $ $ - 63,521 - - - - - - - 32,126 26,998 26,268 25,538 24,808 24,078 23,348 5,834 5,076 4,915 89,141 - - - - - - - - - - - - - 34,196 57,770 57,770 57,770 57,770 57,770 57,770 57,770 57,770 - 37,786 63,834 63,834 63,834 63,834 63,834 43,044 - - 971,726 - - - - 1,479,388 1,082,370 412,998 98,250 147,142 146,412 145,682 144,952 127,438 105,890 62,685 57,770 6,017 - - - - - 13,453 - - - - - - - 11,180 - - - - - - - 32,736 - - - - - - - - 1,013,336 33,330 - 30,060 - - - - 2,333,287 - 87,338 - - - - - 57,540 - - - - - - - - 465,027 - 108,691 - - - - - 90,000 - - - - - - - - 585,677 3,436,899 142,021 87,338 30,060 - - - - 2,150,384 3,056,548 702,019 972,996 983,908 1,100,990 1,247,402 1,393,084 1,538,036 1,665,474 1,771,364 1,834,049 12,453 1,479,388 1,082,370 412,998 98,250 147,142 146,412 145,682 144,952 127,438 105,890 62,685 57,770 (585,677) (3,436,899) (142,021) (87,338) (30,060) - - - - - - - $ 3,056,548 $ 702,019 $ 972,996 $ 983,908 $ 1,100,990 $ 1,247,402 $ 1,393,084 $ 1,538,036 $ 1,665,474 $ 1,771,364 $ 1,834,049 $ 1,891,819 Comments Existing levied assessments Parkview Retail Abatements (City) Parkview Retail Abatements (County) POTENTIAL TRANSFER 2020-2029 CIP 2020-2029 CIP 2020-2029 CIP 2020-2029 CIP Waterfront East Incentives X:\Budget\2021\Cash Flows\Capital Funds 414-Capital Imp. City of Otsego 8 City Buildings & Property Maintenance Cash Flow Summary V Revised: June 15, 2020 25.00% 20.00% 16.67% 14.29% 12.50% 11.11% 10.00% 9.09% 8.33% 7.69% Actual Forecast Projection - Capital Improvement Plan 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Comments Revenues Property Taxes Investment Interest Miscellaneous Transfers In Total Expenses Supplies Other Charges & Services Capital Outlay (City Hall) Capital Outlay (Prairie Cente Capital Outlay (CIP) Transfers Out Total $ $ 20,000 $ 25,000 $ 30,000 $ 35,000 $ 40,000 $ 45,000 $ 50,000 $ 55,000 $ 60,000 $ 65,000 $ 70,000 796 - - - - - - - - - - - 1,019 - - - - - - - - 90,000 10010001 - - - - - - - - - - POTENTIAL TRANSFER 91,815 120,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 19,328 - - - - - - - - - 17,321 42,155 - - - - - - - - - 45,700 14,276 - - - 50,000 150,000 - 2020-2029 CIP 36,649 87,855 14,276 - - - - - 50,000 - 150,000 - Cash Balance - Beginning 55,166 87,311 98,035 128,035 163,035 203,035 248,035 298,035 303,035 363,035 278,035 Balance Sheet Effects - Revenues 91,815 120,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 Expenditures (36,649) (87,855) (14,276) - - - - - (50,000) - (150,000) - Cash Balance - Ending $ 55,166 $ 87,311 $ 98,035 $ 128,035 $ 163,035 $ 203,035 $ 248,035 $ 298,035 $ 303,035 $ 363,035 $ 278,035 $ 348,035 X:\Budget\2021\Cash Flows\Capital Funds 439-Buildings & Property City of Otsego Fund Balance Policy General Fund Transfer 2020 4' Calculation 2020 General Fund Budget 6,312,672 Resolution 2019-83 Comments Minimum Fund Balance 2,840,702 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget. 2019 Ending Fund Balance 4,319,810 Per Audited Financial Statements (195,708) Less: Fund Balance from Insurance Reserve Fund (#204) - Grouped with General for Financial Reporting (28,032) Less: Fund Balance from Educational Programming Fund (#215) - Grouped with General for Financial Reporting (120,924) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Funds actually have alredy been expended. (202,200) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Future funds from land for resale proceeds. 3,772,946 Fund Balance Available (Unassigned) Excess 1 932,244 DRAFT - Presented to City Council on June 22, 2020 X:\Budget\2021\Calculation of Fund Balance Policy Transfers 2020 City of Otsego Community Facilities Fund Cash Flow Summary F L Revised: June 15, 2020 Revenues Investment Interest TRSA Donation Intergovernmental Miscellaneous Transfers In Total Expenses Engineering Capital Outlay - General Capital Outlay - Streets Capital Outlay - Parks Capital Outlay (Parks CIP) Transfers Out Total Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ 9,107 $ (2,524) $ 6,942 $ 2,821 $ 3,809 $ 4,332 $ 6,778 $ - $ - $ - - 20,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 - - - - - - - 150,000 - - - 1,675 - - - - - - 9,107 17,476 16,942 14,496 13,809 14,332 16,778 160,000 89,253 10,000 - - - - 4,068 8,286 29,535 7,574 - - - 2,367 - - - - - - 21,775 292,871 16,086 1,568 19,322 21,284 508,883 89,778 - - - - - - - - - - - 100,000 21,775 292,871 18,453 1,568 23,390 29,570 538,418 97,352 100,000 Cash Balance - Beginning 770,382 756,185 470,515 471,628 484,556 487,230 451,434 160,893 747 90,000 Balance Sheet Effects (1,529) (10,275) 2,624 - 12,255 (20,558) 231,099 (222,794) Revenues 9,107 17,476 16,942 14,496 13,809 14,332 16,778 160,000 89,253 10,000 Expenditures (21,775) (292,871) (18,453) (1,568) (23,390) (29,570) (538,418) (97,352) - (100,000) Cash Balance - Ending $ 756,185 $ 470,515 $ 471,628 $ 484,556 $ 487,230 $ 451,434 $ 160,893 $ 747 $ 90,000 $ - Comments TRSA Committed to $100k (Last Year is 2021) DNR Grant - Norin Landing Park Dedication Subsidy - Norin Landing Transfer of TRSA Donations X:\Budget\2021\Cash Flows\Capital Funds 208-Comm Facilities City of Otsego Collector Streets Reconstruction Fund Cash Flow Summary Revised: June 15, 2020 Actual 2019 Revenues Development Fees $ - $ Special Assessments 9,556 Special Assessments (Levied) - Intergovernmental - Investment Interest 70,052 Miscellaneous - Transfers In 11 Forecast Projection - Capital Improvement Plan 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Comments - - - - - - - - - Actual Wright County Settlements 3,885 3,706 3,527 2,770 - - - - Not included = Deferrals ($151k) Total 79,608 3,885 3,706 3,527 2,770 Expenses Other Charges & Services 14,175 - - - - - - Capital Outlay 147,035 - - - - - - - - Capital Outlay (CIP) - 844,266 100,958 - 374,858 - - 1,648,693 296,878 2020-2029 CIP / 2030 = 10 YR AVG Transfers Out - - - - - - - - - Total 161,210 844,266 100,958 - - 374,858 - - - - 1,648,693 296,878 Cash Balance - Beginning 1,903,570 1,822,509 982,128 884,876 888,403 891,173 516,315 516,315 516,315 516,315 516,315 (1,132,378) Balance Sheet Effects 541 Revenues 79,608 3,885 3,706 3,527 2,770 - - - - - - - Expenditures (161,210) (844,266) (100,958) - - (374,858) - - - - (1,648,693) (296,878) Cash Balance - Ending $ 1,822,509 $ 982,128 $ 884,876 $ 888,403 $ 891,173 $ 516,315 $ 516,315 $ 516,315 $ 516,315 $ 516,315 $ (1,132,378) $ (1,429,256) X:\Budget\2021\Cash Flows\Capital Funds 209-Collector Streets CITY OF OTSEGO Trial Balance - Detail - Funds with Balances or Activity Page: 36 GL Period: 06/20 Jun 10, 2020 09:33AM 1998 ODEAN PROJECT Account Number Title 413-10100 CASH & INVESTMENTS 413-12300 SPECIAL ASSESS REC-DEFERRED 413-22202 UNAVAILABLE REV - ASSESSMENTS 413-25300 UNRESERVED FUND BALANCE Total 1998 ODEAN PROJECT Net Income: Debit Credit Amount Amount 5,074.68 7,000.00 7,000.00- 5,074.68- 12,074.68 12,074.68- .00 CITY OF OTSEGO Trial Balance - Detail - Funds with Balances or Activity Page: 38 GL Period: 06/20 Jun 10, 2020 09:33AM SLAB TOWN W & S Account Number Title 431-10100 CASH & INVESTMENTS 431-12300 SPECIAL ASSESS REC-DEFERRED 431-22202 UNAVAILABLE REV -ASSESSMENTS 431-25300 UNRESERVED FUND BALANCE Total SLAB TOWN W & S Net Income: Debit Credit Amount Amount 22,794.47 5,600.82 5,600.82- 22,794.47- 28,395.29 28,395.29- .00 City of Otsego Property Tax Levy Calculations Payable 2021 V Revised: June 15, 2020 Preliminary Tax Levy (6-8) Preliminary Tax Levy (6-22) Levy Description 2016 2017 2018 2019 2020 2021 Change Change 2021 Change Change General Revenues 3,529,352 3,766,000 3,986,000 4,210,000 4,518,000 4,743,900 225,900 5.00% 4,743,900 225,900 Tax Abatements 88,814 81,385 65,546 60,816 56,491 45,874 (10,617) 18.79% 45,874 (10,617) 18.79% Debt Service Series 2010D & Series 2011A 225,000 225,000 215,000 205,000 195,000 195,000 195,000 Series 2010B 415,000 430,000 440,000 450,000 460,000 460,000 - 460,000 - Series 2018A - - - 79,293 91,758 94,551 2,793 94,551 2,793 Sub -total 640,000 655,000 655,000 734,293 746,758 749,551 2,793 0.37% 749,551 2,793 0.37% Capital Reserves Pavement Management 339,200 475,960 600,000 800,000 950,000 1,050,000 100,000 1,050,000 100,000 Trails Management 25,250 26,000 30,000 32,000 33,000 34,000 1,000 34,000 1,000 Parks Equipment 54,590 55,000 56,000 58,000 60,000 62,000 2,000 62,000 2,000 Capital Equipment Revolving 168,000 235,200 242,256 260,000 280,000 300,000 20,000 300,000 20,000 Fire Reserve 150,000 150,000 160,000 170,000 180,000 190,000 10,000 190,000 10,000 Storm Water 25,000 25,000 26,000 30,000 32,000 34,000 2,000 34,000 2,000 Capital Improvements - 160,200 282,500 355,000 318,000 386,000 68,000 386,000 68,000 City Buildings & Property - - - - 20,000 25,000 5,000 25,000 5,000 Sub -total 762,040 1,127,360 1,396,756 1,705,000 1,873,000 2,081,000 208,000 11.11% 2,081,000 208,000 11.11% Grand Total Tax Capacity Growth (%) Net Tax Capacity Growth (%) Tax Rate Population Tax Levy Per Capita 5,020,206 5,629,745 6,103,302 6,710,109 7,194,249 7,620,325 426,076 5.92% 7,620,325 426,076 13,238,424 14,873,116 16,783,003 18,695,511 20,742,285 22,048,692 22,048,692 16.55% 12.35% 12.84% 11.40% 10.95% 6.30% 6.30% 13,238,424 14,872,821 16,696,008 18,608,540 20,497,278 21,717,962 21,717,962 16.55% 12.35% 12.26% 11.46% 10.15% 5.96% 5.96% 37.921 37.852 14,968 15,472 335 364 36.556 36.060 16,019 16,605 381 404 35.099 35.088 17,323 18,130 415 420 18,130 420 Taxing 2016 2017 2018 2019 2020 2021 2021 Authority Final Tax Rate 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 35.099 35.088 -0.03% 35.088 -0.03% Vright County 39.970 39.599 39.946 44.273 44.421 44.421 0.00% 44.421 0.00% chool District 39.266 36.659 36.137 32.865 34.371 34.371 0.00% 34.371 0.00% chool District - RMV 19.441 19.373 19.422 19.430 29.961 29.961 0.00% 29.961 0.00% Description 2017 2018 2019 2020 2021 Change 2021 Change Median Appraised Value 198,300 217,206 220,572 247,859 258,455 4.28% 258,455 4.28% Less: MV Exclusion (19,393) (17,691) (17,389) (14,933) (13,979) (13,979) Taxable Market Value 178,907 199,515 203,183 232,926 244,476 4.96% 244,476 4.96% Tax Capacity 1,789 1,995 2,032 2,329 2,445 2,445 2017 2018 2019 2020 2021 2021 Taxing Estimated Estimated Estimated Estimated Estimated Estimated Authority Tax Tax Tax Tax Tax Change Tax Change City of Otsego 677 729 733 818 858 4.89% 858 4.89% Wright County 708 797 900 1,035 1,086 4.93% 1,086 4.93% School District 656 721 668 801 840 4.87% 840 4.87% School District - RMV 384 422 429 743 774 4.17% 774 4.17% Total 2,425 2,669 2,730 3,397 3,558 4.74% 3,558 4.74% Annual Increase 161 161 Comment Estimated at 1% of County Provided Value Estimated at 98.50% 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. 14 X:\Budget\2021\Property Taxes\Tax Levy Calculations 6-22