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Item 2. 2022 Budget, Tax Levy and Capital Improvement Plan ReviewCity of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  TO:   Mayor and City Council  FROM:   Adam Flaherty, City Administrator & Finance Director  DATE:   October 25, 2021  SUBJECT:  Budget Meeting #9  On Monday, Council and staff will resume the review of the 2022‐2031 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.   Trails Management CIP  The City has established Fund #202 – Trails Management. The purpose of this fund is to provide  funds and to account for the expenditure of such funds for costs associated with the City’s trail  maintenance plan, which include crack filling, fog sealing, infrared patching, patching, micro‐ surface, overlay and reconstruction.  City staff annually provide a PCI rating for each segment of trail within the City to help guide  appropriate maintenance and to determine when certain trail segments would be eligible for a  more significant improvement such as an overlay or reconstruction.  City staff presented this information to the Administrative Sub‐Committee on September 8th.  Materials for Review and Discussion  1)Parks & Trails ‐ Capital Improvement Plan – Summary 2)Financial Cash Flow ‐ Fund #202 – Trails Management Item 2. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  Park Development CIP  The City has established Fund #203 – Park Development. This fund was established to accumulate  funds through Park Dedication Fees, paid as cash in lieu of park land dedication for new  development. In accordance with Minnesota Statute 462.358, Subd. 2(B)(g):    Cash payments received must be used only for the acquisition and development or  improvement of parks, recreational facilities, playgrounds, trails, wetlands or open space  based on the approved Park System Plan. Cash payments must not be used for ongoing  operation or maintenance of parks.    City staff presented this information to the Administrative Sub‐Committee on October 13th.      Materials for Review and Discussion  1) Park Development ‐ Capital Improvement Plan – Summary  2) Financial Cash Flow ‐ Fund #203 – Park Development    Parks Capital Equipment CIP  The City has established Fund #205 – Parks Capital Equipment. This fund was established to  accumulate funds for major maintenance and replacement of park equipment (playgrounds),  facilities (shelters, benches, etc.), and infrastructure (landscaping, irrigation, parking lots, etc.).    City staff presented this information to the Administrative Sub‐Committee on October 13th.      Materials for Review and Discussion  1) Parks Capital Equipment ‐ Capital Improvement Plan – Summary  2) Financial Cash Flow ‐ Fund #205 – Parks Capital Equipment    General Fund Budget  City staff continues to review the expenditure budgets that were presented during previous  budget meetings for any necessary revisions. Those budget revisions will be reviewed with the City  Council at an upcoming budget meeting and prior to final budget adoption.     Property Tax Levy  The City Council approved a preliminary property tax levy of $8,585,005 in September. There have  been no changes to the property tax levy since that approval.    Next Meetings  The schedule for the remaining budget meetings is as follows:    1) November 8th – Fire Reserve; Capital Improvements; Buildings and Property Maintenance  2) November 22nd – Public Utility Operating Budgets and CIP  3) December 13th – Truth in Taxation Public Meeting    Staff would be seeking direction from the City Council on whether any additional review topics or  budget meetings are necessary, or if the City Council concurs with what has been presented and  reviewed thus far.  Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2022 2031thruTotal2022 2023 2024 2025 2026Source2027 2028 2029 2030 2031 #202 - Trail Management64,00064,000Trail MaintenanceTRAILS-22-0160,00060,000Trail Renewal - Carrick's LandingTRAILS-22-02621,00065,000 66,000 67,000 68,000 69,000 70,000 71,000 72,00073,000Trail MaintenanceTRAILS-23-31300,000100,000 100,000100,000Trail RenewalTRAILS-25-31202 - Trail Management Total1,045,000124,000 65,000 66,000 167,00068,000 69,000 170,000 71,000 72,000 173,000124,000 65,000 66,000 167,000 68,0001,045,000GRAND TOTAL69,000 170,000 71,000 72,000 173,000 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2022 2031thruTotal2022 2023 2024 2025 2026Source2027 2028 2029 2030 2031 #203 - Park Development130,000130,000River Access ImprovementsPARK-2021-04400,000180,000 220,000Athletic Field Improvements - Prairie ParkPARK-2021-0523,00023,000Prairie Park Master PlanPARK-2022-01920,000920,000Land AcquisitionPARK-2022-02129,65029,650 50,000 50,000Wayfinding SignagePARK-2022-03260,00010,000 250,000Ashwood Neighborhood ParkPARK-2023-0117,00017,000Riverpointe - Natural Park AreaPARK-2024-0160,00060,000Feasibility Study for Community CenterPARK-2025-01100,000100,000Pickleball Courts LightingPARK-2031-01203 - Park Development Total2,039,6501,282,650 280,000 317,000 60,000100,0001,282,650 280,000 317,000 60,0002,039,650GRAND TOTAL100,000 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2022 2031thruTotal2022 2023 2024 2025 2026Source2027 2028 2029 2030 2031 #205 - Park Capital Equipment425,00025,000 400,000Park Improvements - School Knoll ParkPARK-2022-04180,000180,000Soccer Field Lighting - Lehrke ComplexPARK-2023-02240,000240,000Playground Improvements - Prairie ParkPARK-2024-02102,000102,000Playground Improvements - Lily PondPARK-2029-01108,000108,000Playground Improvements - KittredgePARK-2031-02108,120108,120Playground Improvements - LefebvrePARK-2031-03423,150423,150Playground Replacement - Future (2036-2042)PARK-2031-04205 - Park Capital Equipment Total1,586,27025,000 580,000 240,000 102,000 639,27025,000 580,000 240,0001,586,270GRAND TOTAL102,000 639,270 City of OtsegoTrail Management FundCash Flow SummaryRevised: October 21, 2021 21.21% 7.50% 53.49% 4.55% 4.35% 4.17% 4.00% 3.85% 3.70% 3.57% 3.45%Actual Forecast2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesProperty Taxes 33,000$                40,000$                43,000$                66,000$                69,000$               72,000$               75,000$               78,000$               81,000$               84,000$                87,000$               90,000$              Intergovernmental ‐                             ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Investment Interest 1,420                     ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Miscellaneous ‐                             ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Transfers In 200,000                300,000                ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Total 234,420                340,000                43,000                  66,000                  69,000                72,000                75,000                78,000                81,000                84,000                  87,000                 90,000               ExpensesEngineering ‐                             ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Other Charges & Services ‐                             ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Capital Outlay 32,250                  ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Capital Outlay (CIP‐Maintenance) ‐                             33,000                  64,000                  65,000                  66,000                67,000                68,000                69,000                70,000                71,000                  72,000                 73,000               Capital Outlay (CIP‐Renewal) ‐                             202,852                60,000                  ‐                             ‐                           100,000              ‐                           ‐                           100,000              ‐                             ‐                            100,000             Transfers Out ‐                             ‐                             ‐                             ‐                             ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            ‐                          Total 32,250                  235,852                124,000                65,000                  66,000                167,000              68,000                69,000                170,000              71,000                  72,000                 173,000             Cash Balance ‐ Beginning2,561                     227,306                308,879                227,879                228,879              231,879              136,879              143,879              152,879              63,879                  76,879                 91,879               Balance Sheet Effects 22,575                  (22,575)                Revenues 234,420                340,000                43,000                  66,000                  69,000                72,000                75,000                78,000                81,000                84,000                  87,000                 90,000               Expenditures (32,250)                 (235,852)               (124,000)               (65,000)                 (66,000)               (167,000)             (68,000)               (69,000)               (170,000)             (71,000)                 (72,000)                (173,000)            Cash Balance ‐ Ending 227,306$              308,879$              227,879$              228,879$              231,879$             136,879$             143,879$             152,879$             63,879$               76,879$                91,879$               8,879$                Projection ‐ Capital Improvement PlanX:\Budget\2022\Cash Flows\Capital Funds202-Trail Management City of OtsegoPark Development FundCash Flow SummaryRevised: October 21, 2021Actual Forecast2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesPark Dedication Fees 780,930$              1,204,322$           290,880$              293,789$              296,727$             299,694$             302,691$             305,718$             308,775$             311,863$              314,981$              318,131$            Intergovernmental ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Special Assessments ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Special Assessments (Levied) ‐                             2,410                     2,410                     2,410                     2,410                    2,410                   2,410                   2,410                   ‐                           ‐                             ‐                            ‐                          Investment Interest 132,716                ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Miscellaneous ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Transfers In ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 913,646                1,206,732             293,290                296,199                299,137               302,104              305,101              308,128              308,775              311,863                314,981                318,131             ExpensesEngineering 6,967                     ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Other Charges & Services 16,650                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay 230,338                87,263                  ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (CIP) ‐                             171,785                1,282,650             280,000                317,000               60,000                ‐                           ‐                           ‐                           ‐                             ‐                            100,000             Transfers Out 79,253                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 333,208                259,048                1,282,650             280,000                317,000               60,000                ‐                           ‐                           ‐                           ‐                             ‐                            100,000             Cash Balance ‐ Beginning3,636,768             4,292,996             5,164,890             4,175,530             4,191,729            4,173,865           4,415,969           4,721,070           5,029,198           5,337,973             5,649,836             5,964,817          Balance Sheet Effects 75,790                  (75,790)                Revenues 913,646                1,206,732             293,290                296,199                299,137               302,104              305,101              308,128              308,775              311,863                314,981                318,131             Expenditures (333,208)               (259,048)               (1,282,650)            (280,000)               (317,000)              (60,000)               ‐                           ‐                           ‐                           ‐                             ‐                            (100,000)            Cash Balance ‐ Ending 4,292,996$           5,164,890$           4,175,530$           4,191,729$           4,173,865$          4,415,969$          4,721,070$          5,029,198$          5,337,973$          5,649,836$           5,964,817$           6,182,948$         Projection ‐ Capital Improvement PlanX:\Budget\2022\Cash Flows\Capital Funds203-Park Development City of OtsegoPark Equipment FundCash Flow SummaryRevised: October 21, 2021 3.23% 3.13% 3.03% 2.94% 2.86% 2.78% 2.70% 2.63% 2.56% 2.50%Actual Forecast2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesProperty Taxes 60,000$                62,000$                64,000$                66,000$                68,000$               70,000$               72,000$               74,000$               76,000$               78,000$                80,000$                82,000$              Contributions ‐ Soccer ‐                             20,000                  ‐                             10,000                  10,000                 10,000                10,000                10,000                10,000                10,000                 10,000                  10,000               Investment Interest 16,414                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Miscellaneous 30,947                  30,951                  ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Transfers In 80,000                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Total 187,361                112,951                64,000                  76,000                  78,000                 80,000                82,000                84,000                86,000                88,000                 90,000                  92,000               ExpensesSupplies ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Other Charges & Services ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Capital Outlay ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Capital Outlay (CIP) ‐                             ‐                             25,000                  580,000                240,000               ‐                           ‐                           ‐                           ‐                           102,000               ‐                             639,270             Transfers Out ‐                             61,898                  ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                          Total ‐                             61,898                  25,000                  580,000                240,000               ‐                           ‐                           ‐                           ‐                           102,000               ‐                             639,270             Cash Balance ‐ Beginning424,738                604,799                655,852                694,852                190,852               28,852                108,852              190,852              274,852              360,852               346,852                436,852             Balance Sheet Effects (7,300)                  Revenues 187,361                112,951                64,000                  76,000                  78,000                 80,000                82,000                84,000                86,000                88,000                 90,000                  92,000               Expenditures ‐                             (61,898)                 (25,000)                 (580,000)               (240,000)              ‐                           ‐                           ‐                           ‐                           (102,000)              ‐                             (639,270)            Cash Balance ‐ Ending 604,799$              655,852$              694,852$              190,852$              28,852$               108,852$             190,852$             274,852$             360,852$             346,852$              436,852$              (110,418)$           Projection ‐ Capital Improvement PlanX:\Budget\2022\Cash Flows\Capital Funds205-Park Equipment