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Item 2. 2022 Budget, Tax Levy and Capital Improvement Plan Review 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:    November 8, 2021    SUBJECT:   Budget Meeting #10      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.     Fire Reserve CIP  The City has established Fund #214 – Fire Reserve. This fund was established to accumulate funds  that will be used to finance the costs associated with the future construction of a fire station  building and the capital equipment associated with it.    The City is currently in study for the evaluation of and planning for future fire service delivery  options. The consultant will be presenting a progress report on the study at the November 8, 2021  special council meeting. Given the early stages of the study, there have been no specific items  included within the Capital Improvement Plan at this time.      Materials for Review and Discussion  1) Financial Cash Flow ‐ Fund #214 – Fire Reserve    Capital Improvements Revolving CIP  The City has established Fund #414 – Capital Improvements Revolving. The purpose of this fund is  to accumulate resources that may be used to internally finance future City projects.      Materials for Review and Discussion  1) Capital Improvements Revolving ‐ Capital Improvement Plan – Summary  2) Financial Cash Flow ‐ Fund #414 – Capital Improvements Revolving    City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  City Buildings and Property Maintenance CIP  The City has established Fund #439 – City Buildings and Property Maintenance. The purpose of this  fund is to provide funds and to account for the expenditure of such funds for costs associated with  the maintenance of and improvements to City buildings and properties.    The City is currently in study for the evaluation of and planning for future municipal buildings such  as City Hall, Public Works and the Prairie Center. The architectural firm presented a progress  report on the study at the October 25, 2021 special council meeting. The timelines of the projects  in the materials reflect the approximate timeframes in the study; however, no Council action has  been taken to affirm the projects will actually take place on the respective timeframes. They have  been included in the CIP as placeholders at this time.      Materials for Review and Discussion  1) City Buildings & Property Maintenance ‐ Capital Improvement Plan – Summary  2) Financial Cash Flow ‐ Fund #439 – City Buildings and Property Maintenance    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 22nd – Public Utility Operating Budgets and CIP  2) 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 #414 - Capital Improvements254,523254,523CSAH 38 & CSAH 19 - Local ShareCSAH-2020-04386,716386,716CSAH 39 & CSAH 42 - Local ShareCSAH-2020-0587,33887,338CSAH 37 - Local ShareCSAH-2022-01625,000625,000CR 137 - Local ShareCSAH-2024-01350,000350,000CSAH 19 & CSAH 39 IntersectionCSAH-2024-02330,000330,000TH 101 - Left Turn SignalsPW-2022-0150,00050,000CSAH 38 - Turn Lanes - Martin Farms Ave.PW-2023-0138,00038,000Signal Light PaintingPW-2026-0140,00040,000Signal Light PaintingPW-2028-01414 - Capital Improvements Total2,161,5771,058,577 50,000 975,000 38,000 40,0001,058,577 50,000 975,000 38,0002,161,577GRAND TOTAL40,000 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2022 2031thruTotal2022 2023 2024 2025 2026Source2027 2028 2029 2030 2031 #439 - Building & Property Maintenan38,36338,363City Hall - Carpet ReplacementBLDG-2022-0116,53816,538City Hall - Window FilmBLDG-2022-0216,0008,000 8,000Prairie Center DoorsBLDG-2022-0320,00020,000City Hall - PaintingBLDG-2022-0430,00010,000 10,000 10,000Prairie Center WindowsBLDG-2023-024,0004,000Prairie Center - SkylightBLDG-2023-0320,00020,000Prairie Center - Carpet ReplacementBLDG-2030-0250,00050,000Salt Shed Cover ReplacementBLDG-2030-0360,00060,000Server System ReplacementIT-2025-0120,00020,000Security Camera SystemsIT-2027-0130,00030,000Automated Entry & Security SystemsIT-2027-02150,000150,000Audio/Visual Systems - Council ChambersIT-2029-0170,00070,000Server System ReplacementIT-2030-019 - Building & Property Maintenance Total524,90182,901 22,000 10,000 70,000 50,000 150,000 140,000Issuance of Bonds13,665,00013,665,000City Campus - Phase 1BLDG-2023-0114,316,75014,316,750City Campus - Phase 2BLDG-2026-015,930,0005,930,000City Campus - Phase 3BLDG-2030-01Issuance of Bonds Total33,911,75013,665,000 14,316,750 5,930,00082,901 13,687,000 10,000 70,000 14,316,75034,436,651GRAND TOTAL50,000 150,000 6,070,000 City of OtsegoFire Reserves FundCash Flow SummaryRevised: November 1, 2021Actual Forecast2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesProperty Taxes 180,000$              190,000$              200,000$              210,000$              220,000$             230,000$             240,000$             250,000$             260,000$             270,000$              280,000$              290,000$            Property Taxes (Debt Service) ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Special Assessments 398                        ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Investment Interest 54,072                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Intergovernmental ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Miscellaneous ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            574,252             Debt Issuance ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Transfers In ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 234,470                190,000                200,000                210,000                220,000               230,000              240,000              250,000              260,000              270,000                280,000                864,252             ExpensesFire Study ‐                             20,000                  ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Other Charges & Services 7,962                     ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (Land) ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (Equipment) ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (Building) ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Debt Service ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Transfers Out ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 7,962                     20,000                  ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Cash Balance ‐ Beginning1,564,514             1,791,201             1,961,201             2,161,201             2,371,201            2,591,201           2,821,201           3,061,201           3,311,201           3,571,201             3,841,201             4,121,201          Balance Sheet Effects 179                       Revenues 234,470                190,000                200,000                210,000                220,000               230,000              240,000              250,000              260,000              270,000                280,000                864,252             Expenditures (7,962)                   (20,000)                 ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Cash Balance ‐ Ending 1,791,201$           1,961,201$           2,161,201$           2,371,201$           2,591,201$          2,821,201$          3,061,201$          3,311,201$          3,571,201$          3,841,201$           4,121,201$           4,985,453$         Projection ‐ Capital Improvement PlanX:\Budget\2022\Cash Flows\Capital Funds214-Fire Reserve City of OtsegoCapital Improvements FundCash Flow SummaryRevised: November 1, 2021Actual Forecast2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesProperty Taxes 318,000$              661,000$              1,227,396$           ‐$                           ‐$                          ‐$                          ‐$                          ‐$                          ‐$                          ‐$                           ‐$                          ‐$                         Intergovernmental ‐                             ‐                             ‐                             ‐                             297,000               ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Special Assessments 52,023                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Special Assessments (Levied) ‐                             28,322                  27,557                 26,791                  26,026                 25,260                24,495                6,945                   5,076                   4,915                     ‐                            ‐                          Investment Interest 45,446                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Tax Abatement ‐ City ‐                             ‐                             40,422                 57,770                  57,770                 57,770                57,770                57,770                57,770                57,770                  57,770                  57,770               Tax Abatement ‐ County ‐                             ‐                             35,804                 63,834                  63,834                 63,834                63,834                63,834                45,026                ‐                             ‐                            ‐                          Sales of Capital Assets ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Miscellaneous 57,717                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Transfers In 632,244                2,134,846             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 1,105,430             2,824,168             1,331,179             148,395                444,630               146,864              146,099              128,549              107,872              62,685                  57,770                  57,770               ExpensesCapital Outlay ‐ General 31,858                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay ‐ Public Safety ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay ‐ Public Works 2,577,165             170,202                ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay ‐ Parks ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay ‐ Econ Dev ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (Streets CIP) ‐                             ‐                             330,000                50,000                  ‐                            ‐                           38,000                ‐                           40,000                ‐                             ‐                            ‐                          Capital Outlay (County CIP) ‐                             ‐                             728,577                ‐                             975,000               ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (Property CIP) ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Development Incentives ‐                             108,691                ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Transfers Out ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 2,609,023             278,893                1,058,577             50,000                  975,000               ‐                           38,000                ‐                           40,000                ‐                             ‐                            ‐                          Cash Balance ‐ Beginning3,056,548             1,609,498             4,154,773             4,427,375             4,525,770            3,995,400           4,142,264           4,250,363           4,378,912           4,446,784             4,509,469             4,567,239          Balance Sheet Effects 56,543                 Revenues 1,105,430             2,824,168             1,331,179             148,395                444,630               146,864              146,099              128,549              107,872              62,685                  57,770                  57,770               Expenditures (2,609,023)            (278,893)               (1,058,577)            (50,000)                 (975,000)              ‐                           (38,000)               ‐                           (40,000)               ‐                             ‐                            ‐                          Cash Balance ‐ Ending 1,609,498$           4,154,773$           4,427,375$           4,525,770$           3,995,400$          4,142,264$          4,250,363$          4,378,912$          4,446,784$          4,509,469$           4,567,239$           4,625,009$         Projection ‐ Capital Improvement PlanX:\Budget\2022\Cash Flows\Capital Funds414-Capital Imp. City of OtsegoCity Buildings & Property MaintenanceCash Flow SummaryRevised: November 1, 2021 25.00% 20.00% 16.67% 14.29% 12.50% 11.11% 10.00% 9.09% 8.33% 7.69% 7.14%Actual Forecast2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesProperty Taxes 20,000$                25,000$                30,000$                35,000$                40,000$               45,000$               50,000$               55,000$               60,000$               65,000$                70,000$                75,000$              Investment Interest 749                        ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Miscellaneous ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Debt Issuance ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Transfers In 100,000                ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 120,749                25,000                  30,000                 35,000                  40,000                 45,000                50,000                55,000                60,000                65,000                  70,000                  75,000               ExpensesSupplies ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Other Charges & Services 12,984                  8,500                     ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (City Hall) 35,873                  8,989                     ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (Prairie Center) 42,923                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Capital Outlay (CIP) ‐                             ‐                             82,901                 22,000                  10,000                 10,000                ‐                           ‐                           ‐                           ‐                             70,000                  ‐                          Capital Outlay (IT CIP) ‐                             ‐                             ‐                             ‐                             ‐                            60,000                ‐                           50,000                ‐                           150,000                70,000                  ‐                          Transfers Out ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                             ‐                            ‐                          Total 91,780                  17,489                  82,901                 22,000                  10,000                 70,000                ‐                           50,000                ‐                           150,000                140,000                ‐                          Cash Balance ‐ Beginning55,166                  84,135                  91,646                 38,745                  51,745                 81,745                56,745                106,745              111,745              171,745                86,745                  16,745               Balance Sheet Effects ‐                            Revenues 120,749                25,000                  30,000                 35,000                  40,000                 45,000                50,000                55,000                60,000                65,000                  70,000                  75,000               Expenditures (91,780)                 (17,489)                 (82,901)                 (22,000)                 (10,000)                (70,000)               ‐                           (50,000)               ‐                           (150,000)               (140,000)               ‐                          Cash Balance ‐ Ending 84,135$                91,646$                38,745$                51,745$                81,745$               56,745$               106,745$             111,745$             171,745$             86,745$                16,745$                91,745$              Projection ‐ Capital Improvement PlanX:\Budget\2022\Cash Flows\Capital Funds439-Buildings & Property