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ITEM 7.1 Resolution 14-2710 OtSezTF o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: ) MEETING DATE: Administration Dan Jordet, AS 28 April 2014 PRESENTER(s): REVIEWED BY: ITEM #: Dan Jordet, ASD Lori Johnson, CA 7.1 AGENDA ITEM DETAILS RECOMMENDATION: It is recommended that the City Council adopt a resolution amending the 2014 General Fund budget, incorporating the Community Development and Building Safety Fund into the General Fund as the Building Inspection Department and amending the 2014 Water and Sewer Fund budgets to include the capital Droiect expenditures included in the 2014 Capital Improvement Plan. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: When the 2014 General Fund budget was adopted by the City Council on February 10, 2014 the approval was conditioned upon some changes discussed at the meeting. The first was that the Building Safety Special Revenue Fund be incorporated into the General Fund with all revenues and expenditures for the 2014 fiscal year. The second was that the excess revenues over expenditures expected to be produced by that action would be used to reinstate some of the expenditure reductions make to produce a balanced budget in the February 10, 2014 Balanced budget proposal. These reinstatements included funding for continuing education and training for Administration, sign materials for the Street Department and marketing funds for Economic Development. The meeting minutes reflect that the Administrative Service Director would make the specified changes and return to the City Council with a proposal amending the 2014 operating budget. While these changes were being prepared, it was discovered that the cash for Capital Improvement purchases in Water and Sewer had been anticipated in the Capital Improvement Plan but not allotted in the actual budget document. Because the City Council approves each of these purchased by separate action, it might not legally be necessary to budget the cash flows from the funds. However, in order to accurately forecast cash flows and anticipate rate changes needed to fund operations, these costs should be reflected in the Utility funds budgets. The first attached sheet shows the changes being requested for approval. These are changes from the budget which was officially adopted on February 10, 2014. The second sheet shows the revised budget for the General Fund and the two Utility Funds if the changes are adopted. SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Move to adopt Resolution 2014-27 amending the 2014 General Fund Budget and the 2014 Utility Fund budgets and approving the incorporation of the Building Safety Fund into the General Fund as the Building Inspection Department. BUDGET INFORMATION FUNDING: BUDGETED: X YES All funding sources and uses are listed in the Resolution for the funds affected. ❑ NO ACTION TAKEN ❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes) COMMENTS: SPECIAL CITY COUNCIL MEETING OTSEGO PRAIRIE CENTER February 10, 2014 Call to Order. Mayor Jessica Stockamp called the meeting to order at 8:23 PM. Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Jason Warehime, Doug Schroeder and Tom Darkenwald. Staff: Lori Johnson, City Administrator; Dan Jordet, Administrative Services Director and Tami Loff, City Clerk. 1. 2014 Budget. City Administrator Johnson reviewed the staff report. CM Heidner asked about the Building Safety budget. There was discussion on closing the Building Safety fund to the General Fund. Administrative Services Director Jordet asked if the direction was to make the change in 2014 or wait for the 2015 budget. The City Council stated 2014. The Council discussed the General Fund budget stating their preference to adopt the budget as presented on December 9, 2013, with General Fund expenditures of $4,044,812 with amendments to reduce the Finance Department by $2,000 for audit services and to include the Building Safety budget in the General Fund. CM Heidner said he would like to see the $34,917 surplus designated for paying down debt, The City Council agreed. Administrative Services Director Jordet will prepare the budget amendments as directed by Council for adoption at a future meeting. The Council concurred. CM Heidner motioned to approve Resolution 2014-13 adopting 2014 operating budgets with the General Fund expenditures of $4,044,812. Seconded by CM Schroeder. All in favor. Motion carried. 2. Adjourn. CM Warehime motioned to adjourn. Seconded by CM Darkenwald. All in favor. Motion carried. Adjourned at 9:12 PM. r ATTEST: �OIX �/1 '(4Q04 Tamil Loff, City Clerk City of Otsego General Fund Budget for the year ending 31 December 2014 Revenues: Taxes Licenses and Permits Intergovernmental Revenue Charges for Service Interest Revenue Cable Franchise Fees Other Revenues TOTAL Revenues: Expenditures: General Government: City Council Administration Elections Assessor Finance Legal Information Technology City Hall Planning Building Inspection Subtotal. General Government: Public Safety: Police Police Commission Fire Emergency Management Animal Control Subtotal: Public Safety: Public Works: Streets Engineering Street Lights Fleet Maintenance Subtotal: PublicWorks Culture & Recreation Park Maintenance Recreation Prairie Center Subtotal: Culture & Recreation: Economic Development Transfers Out/(In) TOTAL Expenditures: NET GENERAL FUND: 2011 2012 2013 2014 2014 Actual Actual Budqet Adopted Amended 3,343,665 3,139,130 3,213,145 3,273,715 3,273,715 304,084 563,077 381,700 40,100 557,300 199,053 208,822 202,875 316,611 316,611 96,204 62,163 57,000 65,650 65,650 118,186 92,134 100,000 100,000 100,000 100,176 106,547 100,000 105,000 105,000 282,796 66,553 10,500 143,736 143,736 4,444,164 4,238,426 4,065,220 4,044,812 4,562,012 49,950 51,273 62,950 74,547 74,547 295,869 367,582 365,290 391,002 391,860 390 24,334 585 26,200 26,100 67,935 67,904 68,250 70,300 70,300 176,950 239,680 243,945 321,187 321,187 95,239 71,305 70,000 75,000 75,000 - 35,108 36,850 46,628 47,628 721 716 78,685 81,255 81,255 91,753 86,356 81,680 73,400 73,400 454,415 204,926 210,663 - 231,692 1,233,222 1,149,184 1,218,898 1,159, 519 1,392,969 861,410 875,045 883,300 912,500 912,500 1,191 1,372 1,370 1,350 1,350 - 347,922 355,000 375,850 375,850 - 728 6,500 8,550 8,550 15,274 10,915 17,500 11,000 11,000 877,875 1,235,982 1,263,670 1,309,250 1,309,250 1,285,891 760,656 510,240 629,110 630,610 147,421 128,714 117,000 85,000 85,000 97,046 108,775 105,000 110,000 110,000 - - 209,460 191,630 191,630 1,530,358 998,145 941,700 1,015,740 1,017,240 346,350 193,455 291,655 294,880 294,880 39,725 84,150 138,360 154,075 154,075 58,888 39,134 43,500 33,647 33,647 444,963 316,739 473,515 482,602 482,602 12,353 2,649 14,400 11,790 13,790 556,941 115,000 - 65,911 65,911 4,655,712 3,817,699 3,912,183 4,044,812 4,281,762 211,548 420,727 153,037 - i280,250 = changes from 2014 Adopted to 2014 Amended C:\Users\Dan\Documents\2014 Budget\GF Amendment 12014 Portrait 4/23/2014 f City of Otsego toWater Utility Fund for the year ending December 31, 2014 2011 2012 actual Actual 601 601 37150 37155 Water Sales Water Sales - Irrigation Subtototal: Water Sales 728,544 - 837,928 - 728,544 837,928 601 37165 Water Tower Leases - 55,168 601 36100 Special Assessments 55,050 79,090 601 37170 DNR Fees Collected 14,299 - 601 31900 Penalties and Interest 10,331 12,226 601 34302 Water Meters 24,598 57,219 601 36210 Interest Earned 27,618 17,226 601 34109 Other Administrative Charges 582 1,684 601 38990 Other Miscellaneous Revenue 7,322 6,082 868,344 1,066,623 TOTAL REVENUES 2013 2013 2014 823,900 862,378 1,026,830 2% increase in rates, 10% increase formerly 180 in volume - 139 419 - Full -Time Employees Regular 823,900 1,001,797 1,026,830 74,726 60,000 64,050 60,000 currently being reviewed by City - - - Attorney - 42,793 - Part -Time Employees 15,900 16,421 17,045 partially offsets payments to Dept. 601 49400 119 of Health on line 375 - 30,048 25,000 increase because of 10% on all 601 49400 121 outstanding balance 24,000 70,313 60,000 sale of water meters; offsets some 601 49400 122 expense in line 210 2,128 15,206 - 5,474 - 2,600 123 Health 923,800 1,243,228 1,188,875 5,919 601 49400 298 Fleet Expenses I - SUPPLIES 22,411 60,744 59,500 131,026 C:\Users\Dan\Documents\2014 Budget\Water 2014 Portrait 30,049 1.5 additional Utilities FTE, water Pays 15%; 660 EXPENDITURES formerly 180 PeopleService contract payments. 601 49400 101 Full -Time Employees Regular 29,619 27,826 34,495 74,726 601 49400 102 FT Overtime - - - - 601 49400 104 Part -Time Employees - - - - 601 49400 119 Payroll Allocation 24,955 24,960 15,000 3,750 601 49400 121 PERA 2,147 2,008 2,500 4,979 601 49400 122 FICA and Medicare 2,128 1,921 2,640 5,474 601 49400 123 Health 2,577 2,620 1,709 5,919 601 49400 130 Other Emplolyee Insurance - - - - 601 49400 140 Unemployment Compensation - - 601 49400 150 Workers Compensation - - 1,S75 322 PERSONAL SERVICES 61,426 59,335 57,919 95,170 601 49400 201 Office Supplies and Expenses 91 7,036 10,500 11,727 601 49400 202 Fuel 515 202 1,000 162 601 49400 206 Postage 5,345 4,595 5,500 4,720 601 49400 210 Operating Supplies 14,048 41,061 25,000 99,139 601 49400 220 Repair/Maintenance Supplies 2,412 7,850 17,500 5,152 601 49400 225 Uniform/Clothing Allowance - - - 1,254 601 49400 227 Safety Supplies - - 808 601 49400 240 Small Tools and Equipment - - 8,064 601 49400 298 Fleet Expenses I - SUPPLIES 22,411 60,744 59,500 131,026 C:\Users\Dan\Documents\2014 Budget\Water 2014 Portrait 30,049 1.5 additional Utilities FTE, water 146,025 4/23/2014 Pays 15%; 660 offset by reduction in line 390, formerly 180 PeopleService contract payments. 2,226 2,363 5,894 1,347 42,719 equals 15% of total Utilities staffing budget 10,500 utility billing and bank charges 750 for generators 6,000 for utility bills 98,100 meters for resale, treatment chemicals, lubricants 16,000 hydrants, transducers, distribution system repair parts 1,475 200 personal protective equipment 4,000 line tracer for locates, other small tools 9,000 vehicle fuel, repairs & maintenance, insurance 146,025 4/23/2014 C:\Users\Dan\Documents\2014 Budget\Water 2014 Portrait 2012 2013 2013 2014 2011 Actual Account Actual Description Actual 601 49400 301 Legal Fees 887 601 49400 302 Engineering Feses 17,128 601 49400 303 Planning Fees 470 601 49400 306 Permits & Fees - 601 49400 310 Miscellaneous 10,297 601 49400 315 GIS Services 2,064 601 49400 320 Telephone - 601 49400 321 Mileage & Travel - 601 49400 322 Utilities 52,689 601 49400 350 Print & Publishing 2,766 601 49400 355 Dues & Memberships - 601 49400 360 Education/Training/Conferences - 601 49400 361 Liability & Property Insurance 8,426 601 49400 375 Water Test Fee 14,772 601 49400 390 Contracted Services 184,372 601 49400 402 Repairs & Maintenance Services 19,065 601 49400 410 Rentals - 601 49400 420 Depreciation 473,231 CONTRACTUAL SERVICES 786,167 601 49400 602 Bond Interest 641,232 601 49400 720 Operating Transfers 32,459 473,379 - 354,927 TRANSFERS 673,691 601 49400 501 Equipment 18,871 756,998 320,816 556,219 674,165 424,914 EQUIPMENT 18,871 424,914 2009A and 2010C interest plus TOTAL EXPENDITURES 1,562,566 amortizations 9,800 NET OPERATIONS 694 222 40,379 C:\Users\Dan\Documents\2014 Budget\Water 2014 Portrait 2012 2013 2013 2014 Actual Budget Actual Budget Comments 232 1,000 - 11000 7,144 10,000 1,921 33,000 includes $ 20,000 for WHIP amendment 750 500 175 1,000 7,713 - 150 9,500 State DNR $ 9,000, Tier II permits $500 190 2,000 2,501 3,000 - 1,120 2,181 4,140 cell phones, land lines - - 91 - 50,368 55,000 54,189 57,000 2,559 3,500 265 3,500 utility billing 392 400 623 300 MRWA, MMUA - 270 650 1,700 MMUA allocation for safety, Includes staff CEU 6,690 6,023 - 6,145 437 15,900 16,240 17,100 Department of Health Testing Fees 2,680 @ $ 6.36 207,144 212,645 117,551 49,200 alarm monitoring, pump pulling, meter testing, utility - 10,708 4,755 - locates $ 25,000 - 1,750 - - 473,379 - 354,927 487,580 wells, towers, pumps, distribution system, equipment 756,998 320,816 556,219 674,165 424,914 - 424,914 424,914 2009A and 2010C interest plus amortizations 9,800 10,625 - 40,379 45% of Billing staff, 160 hrs Streets, Admin Allocation 434,714 10,625 424,914 465,293 - - 320 22,250 SCADA at Well #4 $ 11,000 Value Turner $ 11,250 - - 320 22,250 1,311,791 448,860 1,207,649 1,350,452 245,1681 474.940 35,579 (161.577) 4/23/2014 C:\Users\Dan\Documents\2014 Budget\Sewer 2014 Portrait 4/23/2014 EXPENDITURES City of Otsego 602 49450 101 Full -Time Employees Regular Sewer Utility Fund 22,840 34,495 72,045 170,276 .5 additional Utilities FTE, sewer for the year ending December 31, 2014 pays 8S%; large dollar increase 2011 2012 2013 2013 2014 Fund Account Description Actual Actual Budget Actual Budget Comments contract navments. 602 49450 102 FT Overtime REVENUES 3,740 602 49450 104 PartTime Employees - - 602 37200 Sewer Sales 1,022,681 1,019,258 1,158,727 1,136,323 1,181,900 2% increase in rates 602 34000 Charges for Service 13,200 9,553 10,560 7,873 - 4,785 602 31900 Penalties and Interest 16,064 14,519 - 42,229 35,000 increase because of 10% on all 602 49450 123 Health 902 1,456 1,434 5,256 33,397 outstanding balance 602 36210 Interest Earned 19,505 12,279 - - 6,000 602 602 38991 Refunds and Reimbursements 14,854 11,347 11,000 - 11 ,000 49450 150 Workers Compensation TOTAL REVENUES 1,086,304 1,066,956 1,180,287 1,186,425 1,233,900 57,919 C:\Users\Dan\Documents\2014 Budget\Sewer 2014 Portrait 4/23/2014 EXPENDITURES 602 49450 101 Full -Time Employees Regular 22,135 22,840 34,495 72,045 170,276 .5 additional Utilities FTE, sewer pays 8S%; large dollar increase offset by large reduction in line 390, formerly PeopleService contract navments. 602 49450 102 FT Overtime - 3,740 602 49450 104 PartTime Employees - - - - 1,020 602 49450 119 Payroll Allocation 49,507 24,960 15,000 3,750 - 602 49450 121 PERA 1,591 1,647 2,500 4,785 12,616 602 49450 122 FICA and Medicare 1,544 1,539 2,640 5,269 13,390 602 49450 123 Health 902 1,456 1,434 5,256 33,397 602 49450 130 Other Emplolyee Insurance 136 161 275 662 - 602 49450 140 Unemployment Compensation - - - - - 602 49450 150 Workers Compensation 1,575 1,264 7,632 75,815 52,603 57,919 93,031 242,071 PERSONAL SERVICES equals 85% of total Utilities staffing budqet 602 49450 201 Office Supplies and Expenses 97 6,878 10,500 11,727 10,500 utility billinq and bank charges 602 49450 202 Fuel 4,571 5,203 5,500 3,208 5,500 plant qenerators 602 49450 206 Postaqe 5,345 4,595 5,500 4,702 6,000 utility bills 602 49450 210 Operating Supplies 1,464 - - 12,930 53,000 treatment chemicals, filters, seals, fuses, etc. 602 49450 220 Repair/Maintenance Supplies 24,476 29,334 68,000 26,369 66,000 repairs to plant equipment and structures such as heaters, mixers, concrete, I & I reduction 602 49450 225 Uniform/Clothing Allowance - - - 1,253 1,425 602 49450 227 Safety Supplies 3,435 300 602 49450 240 Small Tools and Equipment 7,031 1,000 602 49450 298 W/S Fleet Expenses - - - - 9,000 vehicle fuel, repairs, maintenance, Insurance SUPPLIES 35,953 46,010 89,500 70,655 152,725 C:\Users\Dan\Documents\2014 Budget\Sewer 2014 Portrait 4/23/2014 C:\Users\Dan\Documents\2014 Budget\Sewer 2014 Portrait 4/23/2014 2011 2012 2013 2013 2014 -und Account Description Actual Actual Budget Actual Bud et Comments 602 49450 301 Leqal Fees 2,182 652 1,000 - 1,000 602 49450 302 Enqineerinq Fees 18,745 10,405 10,000 6,849 11,000 602 49450 303 Planninq Fees 1,020 760 500 225 1,000 602 49450 306 Permits & Fees - 4,142 4,100 4,140 7,500 permit renewals (East major @ $ 5,900) (West annual @ $1,450) (Storm pollution prevent at East $ 400) 602 49450 310 Miscellaneous 8,632 - - - - 602 49450 315 GIS Services 7,991 190 2,000 57 4,000 602 49450 320 Telephone - - 1,120 2,834 4,140 cell phones, land lines 602 49450 321 Mileage&Travel - - - - - 602 49450 322 Utilities 128,145 124,947 130,000 150,225 165,000 increase of $ 35,000 if no peak shavinq 602 49450 325 Garbaqe Service - - - 3,478 - 602 49450 350 Print & Publishinq 2,452 2,250 3,500 116 3,500 utility billinq 602 49450 355 Dues & Memberships - - - 25 200 MRWA, AWWA 602 49450 360 Education/Training/Conferences - - 270 1,126 1,300 MMUA allocation for safety, includes staff CEU 602 49450 361 Liability & Property Insurance 20,739 17,913 19,807 4,064 20,205 602 49450 390 Contracted Services 395,580 482,537 446,730 258,155 101,300 effluent and solids testing, alarm monitoring, HVAC and generator repair and maintenance services, utility locates ($ 25,000) 602 49450 402 Repairs & Maintenance Services 31,289 74,070 73,488 - 602 49450 410 Rentals - - 1,750 - - 602 49450 419 Sludqe Haulinq 61,942 2,500 39,000 32,346 35,000 602 49450 420 Depreciation 826,095 826,242 - - 843,252 plants, lift stations, colllector system, equipment CONTRACTUAL SERVICES 1,504,812 1,472,538 733,847 537,128 1,198,397 602 49450 610 Bond Interest 1,139,971 755,400 - 755,400 755,400 2009A and 2010C interest plus amortizations 602 49450 720 Operating Transfers 18,000 19,600 21,225 - 45,006 55% of Billing staff, 160 hrs Streets, Admin Allocation TRANSFERS 1,157,971 775,000 21,225 755,400 800,406 602 49450 501 Equipment 22,107 - - 320 58,750 LS #3 Expansion/Upgrade $55,000; Valve Turner $ 3,750 EQUIPMENT 22,107 - - 320 58,750 TOTAL EXPENDITURES 2,796,658 2,346,151 902,491 1,456,534 2,452,349 NET OPERATIONS 1 (1,710,354) (1 279 195 277,796 (270,109) 1 218 449 C:\Users\Dan\Documents\2014 Budget\Sewer 2014 Portrait 4/23/2014 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2014-27 RESOLUTION AMENDING 2014 OPERATING BUDGETS WHEREAS, on February 10, 2014 the Otsego City Council held a public meeting at which an initial operating budget was adopted for the City's operating funds for the fiscal year ending December 31, 2014; and WHEREAS, the Council directed Staff at that meeting to prepare an amendment to that budget combining the Building Safety Fund with the General Fund and restoring several reductions made to balance the original budget; and WHEREAS, dollars for Capital Improvement projects should eb allotted in the Utility Funds for predicting cash flows even though the funds are approved for expenditure as each projects is approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, WRIGHT COUNTY, MINNESOTA THAT: the following amended sums of money be allotted for the operation of City business in the various funds of the City during the 2014 fiscal year as follows: GENERAL FUND: General Fund Revenues: Property Taxes $ 3,273,715 Licenses and Permits 557,300 Intergovernmental Revenue 316,611 Charges for Service 65,650 Interest Revenue 100,000 Cable Franchise Fee 105,000 Other Revenues 143,736 Revenues $ 4,562.012 General Fund Expenditures: General Government 1,392,969 Public Safety 1,309,250 Public Works 1,017.240 Culture & Recreation 482,602 Economic Development 13,790 Transfers 65,911 Expenditures $ 4.281,762 SPECIAL REVENUE FUNDS: Storm Water In -District Fund Revenues $ 73,800 Storm Water In -District Fund Expenditures $ 63,000 Storm Water Out -of -District Fund Revenues $ 25,000 Storm Water Out -of -District Fund Expenditures $ 21,240 Street Light District Fund Revenues $ 26,700 Street Light District Fund Expenditures $ 13,880 Building Safety Fund Revenues $ -0- Building Safety Fund Expenditures $ -0- combined with the General Fund as a Department j DEBT SERVICE FUND Debt Service Fund Revenues $ 2,705,019 Debt Service Fund Expenditures $ 2,705,019 ENTERPRISE FUNDS Water Fund Revenues $ 1,188,875 Water Fund Expenditures $ 1,350,452 Sewer Fund Revenues $ 1,233,900 Sewer Fund Expenditures $ 2,452.349 ADOPTED by the Otsego City Council this 28"' day of April, 2014. CITY OF OTSEGO ATTEST: Tami Loff, City Clerk MOTION made by Council Member IN FAVOR: OPPOSED: Jessica Stockamp, Mayor and SECONDED by Council Member