3 - Council Memo (6-14-2021)
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: June 14, 2021
SUBJECT: Budget Meeting #2
On Monday, Council and staff will continue the 2022 budgeting discussions. I have developed an
outline of discussion topics below. Please note that the information presented during this meeting
is for discussion only and that nothing is final or set in stone at this point of the process. Staff
would only be asking for Council direction on the items below in order to effectively and efficiently
move the budgeting process forward.
Special Revenue Funds
The City maintains 7 special revenue funds, with only the three tax increment district funds having
adopted budgets.
Staff will review a combined budget summary, and source and use cash flow projections with the
City Council and further discuss each of the funds.
Debt Service Funds
The City maintains 4 debt service funds, with only two having adopted budgets. The debt service
issues associated with the other two funds will have been paid in full by the end of 2021;
therefore, no budget for 2022 being necessary.
Staff will review a combined budget summary, a liability summary, and source and use cash flow
projections with the City Council and further discuss each of the funds.
Property Tax Levy
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 net tax capacity for the 2022 tax
levy will increase approximately 6.36%.
There are currently no tax levies anticipated for Special Revenue funds in 2022; however, tax levies
associated with Debt Service funds is currently scheduled to be $547,187.
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163
Next Meetings
June 28 – At this meeting, staff and Council will review the proposed tax levies and cash flow
projections for the capital project funds.
August 9 – At this meeting, staff and Council will begin reviewing the detailed line‐item budgets for
General fund revenues and department expenditures.
August 23 – At this meeting, staff and Council will continue reviewing the detailed line‐item
budgets for General fund revenues and department expenditures.
August 30 – At this meeting, staff and Council will finish reviewing the detailed line‐item budgets
for General fund revenues and department expenditures.
September 13 – At this meeting, the Council will adopt the Preliminary Tax Levy for Taxes Payable
2022.
Materials
1) Special Revenue Funds – Budget Summary
2) Special Revenue Funds – Cash Flow Projections
3) Debt Service Funds – Budget Summary
4) Debt Service Funds – Liability Summary
5) Debt Service Funds – Cash Flow Projections
6) Tax Levy Summary – Payable 2022