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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:   November 22, 2021  SUBJECT:  Budget Meeting #11  On Monday, Council and staff will be reviewing the draft 2022 Water, Sanitary Sewer and Storm  Water Utility fund budgets along with their respective 2022‐2031 Capital Improvement Plans.   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.   I have developed an outline of discussion topics below.   West WWTF – 60% Design Progress Report  AE2S Engineer Scott Schaefer will be present for the first portion of the meeting to provide a  progress report of the pending West WWTF Capacity Expansion Project, which is at the 60% design  stage, which warrants a City Council check point. This progress report is timely as it will coincide  with the respective budget review.  The Public Works Subcommittee was presented this information at their November 17, 2021  meeting with recommendation to proceed to a full City Council update.    The materials for this item include a PowerPoint presentation, which will be distributed to the City  Council at the meeting and will be displayed visually at the meeting.   Item 2. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  Utility Operations Overview  Utility Operations Manager Neidermeier will be present for this portion of the meeting and will  provide an overview of the Utility Department Operations. This will include a review of the budget  narrative and PowerPoint, which will provide an introduction to some of the impactful items  within the 2022 requested budget.      Materials for Review and Discussion  1) Budget Narrative  2) PowerPoint Slides    Water Utility Fund  City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier  will review the following in detail:      Materials for Review and Discussion  1) Line‐Item Budgets  2) Line‐Item Budgets ‐ Detail  3) Capital Improvement Plan Summary  4) Source & Use Cash Flow Projections    Sanitary Sewer Utility Fund  City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier  will review the following in detail:      Materials for Review and Discussion  1) Line‐Item Budgets  2) Line‐Item Budgets ‐ Detail  3) Capital Improvement Plan Summary  4) Source & Use Cash Flow Projections    Storm Water Utility Fund  City Administrator/Finance Director Flaherty will review the following in detail:      Materials for Review and Discussion  1) Line‐Item Budgets  2) Source & Use Cash Flow Projections    Utility Rates  Utility rate increases will be effective in March 2022. This allows staff to fully analyze the 2021  revenues before recommending adoption of the rate increases. Staff will bring forward formal  action for Council consideration in February 2022. City staff does not expect that the  recommended rate increases discussed at this meeting will materially change.          City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  Penalties on Delinquent Account Balances  City Code Title 8, Chapter 1, Section 9 outlines that a late payment fee of ten percent (10%) shall  be assessed on the unpaid portions on all accounts when payment of the balance is not received  by the due date. As a result of the COVID‐19 pandemic, the City Council has provided relief for  delinquent utility bill accounts by reducing the percentage penalty rate. At the onset of the  pandemic, the penalty rate was reduced to zero percent (0%). In October 2020, the City Council  increased the penalty rate to five percent (5%), and again motioned in March 2021 to maintain the  penalty rate until through the end of 2021. City staff is seeking direction from the City Council on  how to proceed in the upcoming new year.    General Fund  The City Council was originally presented in August 2021 a draft budget, a balanced budget, with  both revenues and expenditures totaling $7,331,245, which was a 11% increase from the prior  year.    Throughout the budget process, City staff continues to review the expenditure budgets that were  presented during earlier budget meetings for any necessary revisions. As of this meeting, the  expenditure budget totals $7,347,794, an increase of $16,549 compared to the original requested  budget. City Administrator/Finance Director Flaherty will provide additional review of the changes  during this meeting to gather feedback and direction from the City Council.    Materials for Review and Discussion  1) Budget Changes Tracking    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. City staff will provide additional  review of the 2022 property tax levy at this meeting.    Materials for Review and Discussion  1) Tax Levy Calculations    December 13, 2021 Meeting  The City will be holding the required Truth‐in‐Taxation presentation during the Council meeting.  This meeting is an opportunity for the public to ask questions regarding the budget and tax levy.  After the presentation and public input opportunity, the City Council will need to approve a  number of items including the final property tax levy, operating budgets and the capital  improvement plan.    There are currently no additional meetings scheduled for review of the property tax levy, budgets  or capital improvement plan. Staff would be seeking direction from the City Council on whether  any additional meetings are necessary, or if the City Council concurs with what has been presented  and reviewed thus far.      City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163      2022 BUDGET NARRATIVE   Utility Operations Manager    DEPARTMENT OVERVIEW  The Otsego Utility Department is responsible for the operation and maintenance of the Municipal  Water and Wastewater Treatment Facilities, Collection and Distribution Systems and related  Customer services.       STRATEGIC PLAN ALIGNMENT  Strategic Direction of Positioning for Growth:   Evaluation of Capacities   West WWTF Liquid Capacity Expansion    Water Tower Addition   Municipal Well Project   East‐West Water System Connection   Water Appropriation Increase   Biosolids Building Completion    Employment Opportunities   Lift Station Comp Plan    Strategic Direction of Empowering the Organization:   Advance Knowledge & Licensure    Staffing plan based on capital projects with organizational focus   Vehicle plan based on staffing plan, capital projects with organizational focus    STAFFING   A Utility Department Staffing Plan was developed in collaboration with AE2S to support staffing  needs as capital projects are initiated.  The framework of the plan corresponds with Master  Planning projects, guidance literature and similar facilities.  The plan identifies future divisions to  focus on advanced treatment and leadership roles as those divisions develop.  Seasonal staff are  incorporated for staff assistance and recruitment.              City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163    UTILITY STAFFING TECHNICAL MEMORANDUM 2021:  Year RECs ** Division Project # of FTE Added Total FTE 2022 * 7,400 West WWTF West WWTF TWAS Hauling 1 8 2024 8,200 West WWTF West Liquid Phase 1 (MBR)3 11 2026 * 9,000 Administration Office Assistant 1 12 2027 * 9,400 C & D Locate Services 2 14 2028 9,800 Water Treatment Well Houses 1-4 1 15 2029 * 10,200 C & D Increased Infrastructure 1 16 2030 10,600 East WWTF East Liquid Phase 1 (MBR)2 18 2033 11,800 Water Treatment Centralized Treatment 2 20 *Estimated project year based on expected need. **Estimated RECs based on 400 REC growth per year                     City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163    UTILITY DEPARTMENT LICENSURE OVERVIEW   WASTEWATER   WATER                 Training hour requirements for renewal (3‐year timeframe):  Class A = 32 hours  Class B = 24 hours  Class C = 16 hours  Class D = 8 hours  Water and Wastewater training requirements are independent of each other    OPERATOR LICENSURE ADVANCEMENT REQUIREMENTS  Class A Operators License:   Certified Class B operator for at least 2 years &  8 years operational experience of a Class A or B facility &  2 years management   OR  Bachelor's degree related field &  4 years operational experience of a Class A or B facility &  2 years management    Class B Operators License:  Certified Class C operator for at least 1 year &  6 years operational experience of a Class A/B/C facility &  2 years management   OR  Bachelor's degree related field &  2 years operational experience of a Class A/B/C facility    Class C Operators License:  3 years operational experience of a Class A/B/C/D facility   OR  Bachelor's degree related field &  1‐year operational experience of a Class A/B/C/D facility    Class D Operator License:  1‐year operational experience of a Class A/B/C/D facility   OR  Postsecondary completion of water or wastewater technology program   Class A  1  Class A 0  Class B  2  Class B 4  Class C  3  Class C 1  Class D  1  Class D 2  TYPE IV  3    City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  VEHICLE   The Utility Vehicle schedule includes the following:   Four ¾ ton pickups with plows   One 1‐ton pickup with utility body   One Class B Crane truck   One Class B JetVac    A Class B Tanker Truck for wastewater solids transport is scheduled for 2022.    A Tandem Axle Dump Truck is being considered for purchase for processed material transport in  lieu of contracted services with estimated savings providing a return on investment within 5 years.    PROJECTS     East WWTF Biosolids Building  The Biosolids Building construction at the East Wastewater Treatment Facility is final completed  and operational providing solids capacity by method of dewatering and removal.        West Wastewater Treatment Facility Expansion  Platted growth has triggered the liquid capacity expansion of the West Wastewater Treatment  Facility.  The Wastewater Master Plan adopted February 2018 identifies the change in process  from extended aeration to membrane filtration.  Project bidding is anticipated early 2022 with  construction completion late 2023.          Water Tower Addition  The Water Master Plan adopted February 2020 identified the need for additional water storage.   Construction of a 1.5 Million Gallon Composite Hydropillar has started with use anticipated spring  of 2023.      Water Appropriation Review  Water production has reached Appropriation Permit quantities.  An appropriation increase is in  review with the DNR to accommodate future supply needs.         Water Interconnect  A water interconnect defined in the Water Master Plan provides the joining of the East and West  Public Water Systems.  The connection benefits the Public Water Systems by increasing water  storage and capacity, security, and redundancy.      Municipal Well and Well Study  A new well addition is being prepared for Well House.  A well study including hydrogeology review  of available water sources, support test well locations and identify capacities.     Drinking Water & Wastewater Utility Preparedness and Response Planning  Required by the America’s Water Infrastructure Act of 2018 a risk and resilience assessment of our  Water and Wastewater System was self‐completed this year.      City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  Master Plan review  Evaluations of adopted Water, Wastewater and Collection System Master Plan projects, capital  costs, forecasted timing and implementation of projects.    GOALS   Regulatory compliance   Customer satisfaction   Proactive infrastructure expansion    Team elevation, advancement, and succession   Encourage technology   Minimize risk and improve resilience   Maintain competitive customer rates    INFRASTRUCTURE  Wastewater   2 Wastewater Treatment Facilities – 1.5 Million Gallon average per day capacity  10 Lift Stations – 24 submersible pumps (5 weighing over 2000 pounds)    67 miles of gravity sanitary & 22 miles of forcemain    1,800 sanitary manholes & 161 valves    Water   4 Well Houses – Ground water with chlorine, fluoride and polyphosphate addition.      8 Wells – 7 submersible, 1 turbine  3 Elevated Storage Tanks ‐ 2.4 Million Gallon capacity, (3.9 Million Gallon available in 2023)  3 Pressure control stations    100 miles of watermain    1,100 hydrants & 2,300 valves    2020 STATS  Biosolids Applied – 99 Dry tons  Water Production – 656 Million gallons  Wastewater Treated – 291 Million gallons  Emergency Call outs – 1/week                            City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163  TRENDING 2015 – October 2021                2022 Utility Budget Narrative Kurt Neidermeier, Utility Manager November 22, 2021 2 Water & Wastewater Operations •Process monitoring and control •Sampling, testing and interpretation •Equipment operation •Records & Communication •Regulatory Compliance Water & Wastewater Maintenance •Preventative •Corrective •Reponses •Documentation Customer Services Department Overview Wastewater Treatment 4 Before After 5 6 Wastewater Flow Trends 7 Biosolids Processing 9 10 Class A Exceptional Quality Biosolids 30 Tons of Material Processed per Week 11 Manholes ~ 1800 Sanitary Sewer ~ 67 Miles Forcemain ~ 22 miles Collection System 12 22 Submersible Pumps (5 weighing over 2000 pounds) 10 Lift Stations 13 Confined Space Entry 14 15 Sanitary Sewer Cleaning Water 16 17 Water Towers ~ 4 MG Storage 1,500,000 gallons 1,000,000 gallons 400,000 gallons 18 Well Maintenance 19 Hydrants ~ 1100 Watermain ~ 100 Miles Wells -8 Operational + 1 Emergency Water Appropriation = 700 Million gallons (DNR) Additional Requested (100 Million) Max Day ~ 6.2 Million Gallons Min Day ~ 0.8 MG Otsego ~ 102 gallons per person per day DNR goal = <75 GPCD 20 21 Strategic Plan Alignment 23 Positioning for Growth ✓Evaluate Capacities ✓Social Community with diverse housing, service opportunities and employment opportunities ✓Committed to delivery of quality emergency services responsive to our community needs. ✓Lift Station Comp Plan ✓West WWTF Liquid Capacity Expansion ✓Biosolids Building Completion ✓Water Tower 4 ✓Well 10 ✓East West Connection ✓Water Appropriation increase Empowering the Organization ✓Increased Communications ✓Training Opportunities ✓Advance Knowledge & Licensure ✓Staffing –10 year Vision ✓Vehicle –10 year Vision Strategic Plan Alignment Utility Team REACH FOR THE STARS 25 INSERT TEAM PIC Operations Team 26 Certified Operators Operations Licensure Wastewater •Class A = 1•Class B = 2•Class C = 3•Class D = 1 Type IV •Biosolids = 3 Water•Class B = 4•Class C = 1•Class D = 2 28 Vehicles Specialty and Passenger 30 Jet Vac Sanitary Sewer Cleaning Lift Station Cleaning Storm Sewer Cleaning Hydro excavating Tank Cleaning Crane Truck Pump pulls Confined Space Heavy Equipment Repairs Storage Access Specialized Vehicles Tanker Addition 2022 East Wastewater Treatment Facility One ¾ Ton Plow Truck ------Existing One 1 Ton w Utility Body ------Existing West Wastewater Treatment Facility One ¾ Ton Plow Truck ------Existing One 1 Ton w Utility Body ------2023 Vehicle CIP Scheduled Collection / Distribution One ¾ Ton Plow Truck ------Existing Two 1 Ton w Utility Body ------2024 Vehicle CIP Scheduled Two Locate Vehicle ------2026 Vehicle CIP Scheduled Water One ¾ Ton Plow Truck -----Existing One 1 Ton w Utility Body -----2025 Vehicle CIP Scheduled Passenger Vehicle Plan –10 year vision STRIVE FOR GREATNESS ❑Regulatory Compliance ❑Customer Satisfaction ❑Proactive Infrastructure Expansion ❑Team Elevation & Succession ❑Encourage Technology ❑Minimize Risk & Improve Resilience ❑Maintain Competitive Customer Rates ➢Meter Replacements ➢Lift Station 2 –rails and pumps ➢Staffing ❑Foreperson –Staff Advancement (West) ❑Operator Addition ❑Seasonal Budget Highlights 36 DISC METER ULTRASONIC Water Meters 37 Water Meter Challenge 38 39 Lift Station #2 –Riverpointe LS2 Pump/Rail Replacement Non clog pump Built 2003 2012 hydraulic kits & Impeller Bypass Pumps Rails Budget Impact $120,000 West WWTF Foreperson –2nd Foreperson ▪Late January Utility Operator ▪Late January Construction –Well 10, West WWTF, Water Tower 4 Customer Services Meters –Reads, Inspections, Replacement Material Transport –West TWAS & Class A Infrastructure –Added Assets Seasonal ▪One –6 Month 2022 Staffing Staffing Plan –Tech Memo AE2S 2021 *Estimated project year based on expected need **Estimated RECs based on 400 REC growth per year *** Collection and Distribution Year RECs **Division Project # of FTE Added Total FTE 2021 7,000 East WWTF Biosolids Processing 1 7 2022*7,400 West WWTF West WWTF TWAS Hauling 1 8 2024 8,200 West WWTF West Liquid Phase 1 (MBR)3 11 2025 9,000 Administration Office Assistant 1 12 2027*9,400 C & D***Locate Services 2 14 2028 9,800 Water Treatment Well Houses 1-4 1 15 2029*10,200 C & D Increased Infrastructure 1 16 2030 10,600 East WWTF East Liquid Phase 1 (MBR)2 18 2033 11,800 Water Treatment Centralized Treatment 2 20 42 43 44 Well Field Study $220,000 Well 10 WH4 $120,000 Well 2 Improvements $60,000 East/West Water Connection Initiate $200,000 Water CIP 45 West WWTF $15,000,000 in 2022 West WWTF Access Road $500,000 Lift Station 2 Improvements $120,000 Biosolids Building remaining $500,000 Wastewater CIP Thank you 47 Lift Station Comp Plan 48 Water Tower 4 Well 10 East/West Water Connection Security Improvements Stationary Generators Triplex Lift Stations Portable Generator Addition Risk And Resilience Americas Water Infrastructure Act (AWIA) 49 Appendix -Staffing Reference 50 Appendix: Staffing Plan Division Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE Foreperson FTE EWWTF Existing 2.75 Existing 3 Existing 3 Existing 3 Existing 3 Existing 3 Existing 3 Existing 4 Existing 5 Existing 5 Existing 5 WWWTF Add 2.75 Existing 4 Existing 4 Existing 4 Existing 4 Existing 4 Existing 4 Existing 4 Existing 4 Existing 5 Existing 5 C&D 0.75 1 Add 1.5 Existing 1.5 Existing 3.5 Existing 4 Existing 4 Existing 4 Existing 4 Existing 4 Existing 4 Water 0.75 1 Add 1.5 Existing 1.5 Existing 1.5 Existing 2 Existing 3 Existing 3 Existing 3 Existing 3 Existing 4 Manager 1 1 1 1 1 1 1 1 1 1 1 Office Ast 1 1 1 1 1 1 1 1 8 10 0 11 0 12 0 14 0 15 0 16 0 17 0 18 0 19 0 20 2 Operator W Foreperson Admin Office W Operator W Operator WW Operator WW Operator WW Operator W Operator Operator Hire June C&D Foreperson 2 on call Operator seasonal seasonal seasonal seasonal seasonal seasonal seasonal seasonal seasonal seasonal seasonal 2 C&D locatesWest Foreperson 20322022202320262028203020272025202420292031 51 Passenger Vehicle Synopsis 52 <1"1"1.5"2"3"4"6" <07 meters 743 2 80 12 0 1 4 2022 Ferguson 550 Carry Over to 23 193 Utilities *50 2 80 12 1 145 >07 <08 meters 192 5 16 6 0 0 0 Carry O + <08 385 2023 Ferguson 385 Utilities *38 5 16 6 0 0 0 65 <09 meters 113 2 5 0 0 0 0 2024 Ferguson 0 Utilities 113 2 5 0 0 0 0 120 <10 meters 103 2 5 0 0 0 0 2025 Ferguson 0 Utilities 103 2 5 0 0 0 0 110 <11 meters 95 1 2 0 0 0 0 2026 Ferguson 0 Utilities 95 1 2 0 0 0 0 98 5/8"x3/4"1"11/2"2"3"4"6"Totals 15 Years 10-14 Years0-9 Years 2000-2006 743 2 80 12 0 1 0 838 838 616 3187 2007 192 5 16 6 0 0 0 219 18%13%69% 2008 113 2 9 3 0 0 0 127 2009 103 2 5 0 0 0 0 110 2010 95 1 2 0 0 0 0 98 2011 57 0 4 1 0 0 0 62 2012 132 1 1 0 0 1 0 135 2013 186 0 3 0 0 0 0 189 2014 151 0 5 1 0 0 0 157 2015 185 7 3 2 0 0 0 197 2016 209 8 7 2 0 0 0 226 2017 208 4 4 3 3 0 0 222 2018 294 1 14 5 2 0 1 317 2019 354 5 9 4 1 0 1 374 2020 375 2 13 3 1 0 0 394 2021 948 1 20 5 2 0 0 976 Totals 4345 41 195 47 9 2 2 4641 53 Grit cylone East housing, auger, piping, motor, reducer, gages Environment Grit pump East pump, motor, piping Environment UV East Components and Panel Environment & Age East GBT poly feed system Mixing system Booster Station Pumps/VFD?spring review Fine Screen East compaction, components, panel East GBT Components and Panel LS3 pump LS1 Pump Environment & Age Aerator West Aerator redundancy West Items with consideration of Expansion timing - will they make it? Pretreatment mechanical air unit West 2 West RAS pumps Fine Screen West UV West - components and panel Components and Panel West RAS Mag meter West GBT Components and Panel Top 10 Things 2022 City of OtsegoEnterprise Fund Budget ‐ 2021Department RequestsWater UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department SourceAccount Description20192020202120212022CommentsRevenues601 49400 37150 WATER SALES1,184,579$        1,484,822$       2,115,103$       1,640,419$       1,661,423$       Based on Utility Rate Study601 49400 37155 WATER SALES ‐ IRRIGATION156,748             220,266            425,892           187,000           189,000           Estimated ‐ Represents Average of Actuals for 2019‐2020601 49400 37160 WATER NSF60                       120                    60                     ‐                        ‐                        601 49400 31900 PENALTIES AND INTEREST54,035               19,757              39,657             42,000             38,000             Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD)TOTAL ‐ OPERATING1,395,422          1,724,966         2,580,712        1,869,419        1,888,423        601 49400 33100 FEDERAL GRANTS AND AIDS‐                          524                    ‐                        ‐                        ‐                        601 49400 33422 OTHER STATE AID GRANTS20,000               10,000              ‐                        ‐                        ‐                        601 49400 33424 OTHER GRANTS2,500                  ‐                         ‐                        ‐                        ‐                        601 49400 34109 OTHER ADMINISTRATIVE CHARGES9,950                  9,675                 8,925                ‐                        ‐                        601 49400 34302 WATER METERS98,181               149,431            136,389           86,000             93,177             261 Meters at $357 (Cost of $327 + 1 HR Admin Time $30)601 49400 36100 SPECIAL ASSESSMENTS98,101               89,593              45,136             ‐                        ‐                        601 49400 36210 INTEREST EARNINGS131,689             91,440              ‐                        ‐                        ‐                        601 49400 36213 NET CHANGE IN INVESTMENT FMV65,623               74,405              ‐                        ‐                        ‐                        601 49400 36232 CAPITAL CONTRIB. DEVELOPERS466,325             602,128            ‐                        ‐                        ‐                        601 49400 37165 WATERTOWER RENTALS‐ANTENNAS79,076               80,068              80,811             86,050             89,853             Tower #1 (Sprint/Verizon) and Tower #3 (Nextera)601 49400 37170 DNR FEES FOR STATE24,422               39,823              43,896             42,768             49,572             Estimated 5,100 Accounts at $9.72 (Actual is 4,733 as of 10/19/2021)601 49400 38990 OTHER MISCELLANEOUS1,725                  1,721                 ‐                        ‐                        ‐                        601 49400 38991 REFUNDS & REIMBURSEMENTS4,713                  3,301                 21,097             ‐                        ‐                        601 49400 39230 BOND PREMIUM‐                          ‐                          251,118           ‐                        ‐                        601 49400 39250 TRANSFER IN ‐ CAPITAL ASSETS3,582                  143,529            ‐                        ‐                        ‐                        601 49400 39300 PROCEEDS ‐ BONDS ISSUED‐                          ‐                          4,345,000        4,500,000        ‐                        TOTAL ‐ NON OPERATING1,005,887          1,295,637         4,932,372        4,714,818        232,602           TOTAL ‐ REVENUES2,401,309          3,020,603         7,513,084        6,584,237        2,121,025        Expenses601 49400 101 FULL‐TIME EMPLOYEES REGULAR78,477               95,729              84,203             106,694           135,278           Includes FT Hire (Based on January 2022 Hiring Timeline)601 49400 102 WAGES ‐ FT OVERTIME4,830                  4,767                 5,426                3,750                5,000                601 49400 104 WAGES ‐ PT EMPLOYEES5,815                  799                    4,602                4,550                4,550                 Includes 1 Seasonal Staff (26 Week Position @ 40 Hours)601 49400 121 PERA6,246                  7,402                 6,716                8,283                10,521             601 49400 122 FICA AND MEDICARE6,493                  7,226                 6,937                8,797                11,079             601 49400 130 OTHER EMPLOYER PAID INS11,961               13,679              11,400             14,836             20,231             601 49400 150 WORKERS COMPENSATION3,600                  4,183                 7,495                4,714                5,215                 Based on Actual 2021‐2022 Premiums + 3% Inflation601 49400 191 GERF PENSION EXPENSE1,455                  4,748                 ‐                        ‐                        ‐                        TOTAL ‐ PERSONAL SERVICES118,876             138,532            126,777           151,624           191,874           601 49400 201 OFFICE SUPPLIES AND EXPENSES4,528                  5,821                 7,149                4,500                6,000                 Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD)601 49400 202 FUEL3,216                  2,061                 ‐                        4,026                3,348                 Allocated 25% of 5,368 Gallons (2020 Actual) at $3.00 (Same Rate as Fleet)601 49400 206 POSTAGE6,331                  10,383              6,917                13,200             15,300             Allocated 50% of Monthly Bill Mailings (5,100 Accounts  at $0.50)601 49400 210 OPERATING SUPPLIES2,561                  2,892                 3,248                7,000                7,000                 Operational & Preventative Maintenance Items601 49400 216 CHEMICAL SUPPLIES78,242               100,154            128,229           114,975           124,200           See Detailed Attachment601 49400 220 REPAIRS/MAINT SUPPLIES25,348               14,814              2,150                18,500             15,000             See Detailed Attachment601 49400 225 UNIFORMS/CLOTHING ALLOWANCE1,548                  1,461                 1,564                2,075                2,350                 See Detailed Attachment601 49400 227 SAFETY SUPPLIES185                     455                    492                   1,800                1,800                601 49400 228 UTILITY SYSTEM SUPPLIES150,059             102,012            364,206           201,000           348,870           See Detailed Attachment601 49400 240 SMALL TOOLS/EQUIPMENT4,326                  3,748                 16,213             5,000                5,000                601 49400 298 W/S FLEET EXPENSES2,446                  4,578                 ‐                        3,500                5,000                TOTAL ‐ SUPPLIES278,791             248,378            530,168           375,576           533,868           49400 ‐ Water Utility FundAccount NumberX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUTWater FundWATER - 1 City of OtsegoEnterprise Fund Budget ‐ 2021Department RequestsWater UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department SourceAccount Description20192020202120212022Comments49400 ‐ Water Utility FundAccount Number601 49400 301 LEGAL SERVICES225                     6,459                 1,679                500                   2,000                601 49400 302 ENGINEERING FEES158,127             262,206            102,308           729,490           28,200             See Detailed Attachment601 49400 303 PLANNING FEES875                     1,413                 175                   ‐                        500                   601 49400 306 PERMITS & FEES41,081               53,850              32,704             53,168             65,000             See Detailed Attachment601 49400 309 SOFTWARE & SUPPORT‐                          ‐                         1,700                ‐                        ‐                        601 49400 315 GIS SERVICES1,338                  412                    300                   3,000                3,000                601 49400 320 TELEPHONE3,818                  3,712                 3,792                4,595                7,495                 See Detailed Attachment601 49400 321 MILEAGE/TRAVEL278                     137                    ‐                        400                   400                   601 49400 322 UTILITIES81,434               98,075              111,670           92,000             103,000           Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD)601 49400 350 PRINT & PUBLISHING88                       232                    ‐                        300                   300                    Statutory Publish Requirements (Budget & Financial Statements)601 49400 355 DUES & MEMBERSHIPS431                     549                    424                   465                   365                    See Detailed Attachment601 49400 360 EDUCATION/TRAINING/CONFERENCES2,268                  1,179                 1,134                3,800                5,100                 See Detailed Attachment601 49400 361 LIABILITY AND PROPERTY INSURAN10,204               10,514              8,306                11,878             13,022             Based on Actual 2021‐2022 Premiums + 5% Inflation601 49400 390 CONTRACTED SERVICES65,716               107,285            90,002             139,900           153,400           See Detailed Attachment601 49400 402 REPAIRS/MAINT BUILDINGS‐                          ‐                         ‐                        ‐                         40,000             Well Houses (4) ‐ Door and Security Improvements601 49400 410 RENTALS1,882                  2,016                 3,212                1,465                2,465                 Folding & Envelope Stuffing Machine ‐ Lease Payments & R/M Allowance601 49400 437 BANK SERVICE CHARGES10,324               10,011              11,293             10,500             11,550             Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD) + 5%601 49400 441 LICENSES, TAXES & FEES‐                          ‐                         100                   ‐                        ‐                        TOTAL ‐ SERVICES & OTHER CHARGES378,089             558,049            368,798           1,051,461        435,797           601 49400 500 CAPITAL OUTLAY (GENERAL)9,540                  1,739                 ‐                        ‐                        ‐                        601 49400 501 EQUIPMENT87,487               ‐                         3,941                17,500             ‐                        601 49400 510 LAND ACQUISITIONS/EASEMENTS‐                           57,522              ‐                        ‐                        ‐                        601 49400 525 BUILDING IMPROVEMENTS‐                          ‐                         ‐                        ‐                         30,000             See Detailed Attachment601 49400 530 IMPROVEMENTS OTHER THAN BLDG104,165             2,363,797         3,148,403        5,774,510        2,775,375        See Detailed Attachment601 49400 550 MOTOR VEHICLES‐                           10,892              8,872                12,250             ‐                        601 49400 590 REHABILITATION & REPLACEMENT‐                          ‐                         ‐                         50,000             50,000             Ongoing investment for costs of R&R ‐ Anticipated from Water Master Plan601 49400 599 CAPITALIZED ASSET OFFSET(122,865)            (2,718,008)        ‐                        ‐                        ‐                        TOTAL ‐ CAPITAL OUTLAY78,327               (284,059)           3,161,215        5,854,260        2,855,375        601 49400 420 DEPRECIATION592,967             628,728            ‐                         854,868           875,778           Based on Utility Rate Study601 49400 602 BOND INTEREST‐                          ‐                         ‐                        ‐                         78,159             Debt Service ‐ 2021A601 49400 620 FISCAL AGENT FEES‐                          ‐                          92,521             ‐                        450                   601 49400 720 OPERATING TRANSFERS144,989             110,786            ‐                         111,535           73,375             Administrative Contribution to General FundTOTAL ‐ OTHER737,956             739,513            92,521             966,403           1,027,762        TOTAL ‐ EXPENSES1,592,038          1,400,413         4,279,479        8,399,324        5,044,676        NET INCOME / (LOSS)809,272$           1,620,190$       3,233,605$       (1,815,087)$     (2,923,651)$     X:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUTWater FundWATER - 2 City of OtsegoEnterprise Fund Budget ‐ 2022Detail of Line Item RequestsWater UtilityRequestedBudget Budget2021 2022 Item Detail / Description Comment7,875$                8,505$                Fluoride94,500                102,060              Polyphosphate12,600                13,608                Chlorine‐                           27                       Rounding114,975              124,200             15,000$              15,000$             Corrective Maintenance Items (Ex. Chemical Pumps, Valves, Hydrant Parts, Repairs)3,500                  ‐                          Dehumidifier for Well House #2‐                           ‐                          ‐                           ‐                          ‐                           ‐                          18,500                15,000               1,400$                1,600$               Clothing Allowance = $400 x 8 Operators (50% Allocation)525                      600                     Boot Allowance = $150 x 8 Operators (50% Allocation)75                        75                       Clothing Allowance = $150 x 1 Seasonal Operators (50% Allocation)75                        75                       Boot Allowance = $150 x 1 Seasonal Operators (50% Allocation)2,075                  2,350                 201,000$            ‐$                        Prior Year Total ‐ Lump Sum for 750 Meters‐                           132,000             New Residential Meters‐                           137,500             Replacement Meters ‐ 5/8" Residential Meters‐                           780                     Replacement Meters ‐ 1" Meters‐                           64,000               Replacement Meters ‐ 1.50" Meters‐                           11,340               Replacement Meters ‐ 2" Meters‐                           3,250                 Replacement Meters ‐ 4" Meters‐                           ‐                          201,000             348,870             18,000$             20,000$              General Water Engineering (Regulatory, Distribution System, Consultation)‐                          5,000                  AE2S ‐ Instrumentation Services‐                          3,200                  KLM ‐ Water Tower #2 Warranty Inspection Services600,000             ‐                           Hakanson Anderson ‐ Water Tower #4 Design95,490               ‐                           KLM ‐ Water Tower #4 ‐ Construction Management & Observation6,000                 ‐                           KLM ‐ Water Tower #2 and Water Tower #3 Inspection Services10,000               ‐                           Well #10 ‐ Exploratory Well Preparations‐                          ‐                          729,490             28,200               42,768$             49,572$             Minnesota Department of Health Testing ($9.72 at 5,100 Accounts)10,000               15,000               DNR ‐ Water Usage400                     400                      Tier II Permits (4 @ $100)‐                          28                        Rounding‐                          ‐                          53,168               65,000               Account No. & Description601‐49400‐216CHEMICAL SUPPLIES601‐49400‐220Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically, or now accounted for in Object #590 as Replacement and Rehabilitation costs.R/M SUPPLIES601‐49400‐306PERMITS & FEES601‐49400‐225UNIFORMS/CLOTHING ALLOWANCE601‐49400‐302ENGINEERING FEES601‐49400‐228UTILITY SYSTEM SUPPLIESX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUT601-DetailWATER - 3 City of OtsegoEnterprise Fund Budget ‐ 2022Detail of Line Item RequestsWater UtilityRequestedBudget Budget2021 2022 Item Detail / Description CommentAccount No. & Description880$                   1,080$               Employee Cell Phones ($45 x 8) + Replacement Phones ($0) ‐ Allocated 25%2,040                  960                     CenturyLink Alarm Phone Lines at Facilities ($80 Per Month)240                      780                     Answering Service ($65 Monthly)360                     420                     Land Line Telephone Service ($35 Monthly)150                     240                     Tablet's Data Plan ($40 x 2) ‐ Allocated 25%175                     175                     WIN‐911 Remote Monitoring Mobile Application ‐ Allocated 25%750                     960                     Charter Communications ‐ Internet Services ‐ ($80 Per Month)‐                          2,880                 Charter Communications ‐ Internet Services ‐ Security Systems ‐ ($80 Per Month)‐                          ‐                          4,595                 7,495                 125$                  ‐$                        Minnesota Municipal Utilities Association ‐ Allocated 25%275                     300                     Minnesota Rural Water Association65                       65                        Suburban Utility Superintendent's Association ‐ Allocated 50%‐                          ‐                          465                    365                    450$                  800$                  Citywide Safety Program Training & LMC Learn2,100                 2,800                 Operator Certification Licensing and Training ($350 x 8 Operators)1,250                 1,500                  Leadership & Supervisory Training‐                          ‐                          3,800                 5,100                 51,931$             52,032$              Locates (Hakanson) ‐ Based on 2019 ‐ 2021 YTD Monthly Average + 5%3,047                 3,628                  Locates (Gopher One) ‐ Based on 2019 ‐ 2021 YTD Monthly Average + 5%12,000               12,000                Electrical Maintenance2,500                 ‐                           Itron Service Agreement3,500                 3,500                  Neptune Service Agreement‐                          4,290                 Aveva WonderWare Customer Support Agreement ‐ 50% Allocation‐                          750                     OpWorks Software Agreement ‐ 50% Allocation2,900                 5,000                  Security Monitoring (3 Water Towers + Booster Station)2,000                 2,000                  Lab Testing5,000                 5,000                  Equipment Inspections & Testing ‐ Generator/ Meters/RPZ15,000               15,000                Distribution Repairs / Watermain Leaks1,200                 1,200                  Mechanical ‐ Heating & Air Conditioning500                     1,800                 VFD Inspections & Preventative Maintenance300                     400                     800Mhz Infrastructure fees ($100 per radio) Wright County35,000               41,250               Water Meter Change‐Out Project (550 Meters at $75 per meter)5,000                 5,500                 Fire Hydrant Painting (100 Hydrants)22                       51                       Rounding Contingency + Inflationary Factor‐                          ‐                          139,900             153,400             ‐$                        15,000$              Water Tower #1 ‐ Interior Building‐                          15,000                Well House #3 ‐ Well Meter Replacement‐                          ‐                          ‐                          30,000               601‐49400‐355DUES & MEMBERSHIPS601‐49400‐525BUILDING IMPROVEMENTS601‐49400‐390601‐49400‐320TELEPHONE601‐49400‐360EDUCATION / TRAINING / CONFERENCECONTRACTED SERVICESX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUT601-DetailWATER - 4 City of OtsegoEnterprise Fund Budget ‐ 2022Detail of Line Item RequestsWater UtilityRequestedBudget Budget2021 2022 Item Detail / Description CommentAccount No. & Description5,604,510$        2,000,000$       Water Tower #4 ‐ CIP Amount120,000              85,000               Water Tower #4 ‐ Engineering (KLM + Hakanson Anderson)50,000                200,000             East & West Water System Connection ‐ Preliminary Design & Planning‐                           60,000                Well #2 Improvements‐                          220,000              Well Field Study ‐ Wells No. 11‐14‐                          130,000              Well #10 ‐ Exploratory Test Well & Project Design‐                          80,375                CSAH 38 & CSAH 19 Local Share‐                          ‐                          5,774,510         2,775,375         601‐49400‐530IMPROVEMENTS OTHER THAN BUILDINGSX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUT601-DetailWATER - 5 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2022 2031thruTotal2022 2023 2024 2025 2026Source2027 2028 2029 2030 2031 #601 - Water Utility80,37580,375CSAH 38 & CSAH 19 - Local ShareCSAH-2020-042,000,0002,000,000Water Tower #4WATER-21-0160,00060,000Well #2 ImprovementsWATER-22-01220,000220,000Well Field Study - Wells No. 11-14WATER-22-023,450,000200,000 3,250,000East & West Connection - Phase 1WATER-23-011,430,000130,000 1,300,000Well #10 - New Municipal WellWATER-23-0270,00070,000Well #6 ImprovementsWATER-24-01120,000120,000Well #8 ImprovementsWATER-25-01350,000350,000Wells No. 11-14 - Site AcquisitionWATER-25-0270,00070,000Well #5 ImprovementsWATER-26-01850,000850,000Water Treatment - Site AcquisitionWATER-26-021,800,000100,000 1,700,000East & West Connection - Phase 2WATER-26-0330,00030,000Well #9 ImprovementsWATER-26-0470,00070,000Well #4 ImprovementsWATER-27-011,777,00027,000 1,750,000Water Tower #3 ReconditioningWATER-28-01120,000120,000Well #3 ImprovementsWATER-28-023,000,000300,000 2,700,000Water Treatment - Well House #4WATER-28-039,000,000900,000 8,100,000Water Treatment - Well House #2WATER-28-0470,00070,000Well #7 ImprovementsWATER-29-013,000,000300,000 2,700,000Water Treatment - Well House #3WATER-29-029,000,000900,000 8,100,000Water Treatment - Well House #1WATER-29-0370,00070,000Well #9 ImprovementsWATER-30-012,400,0002,400,000East & West System Trunk WatermainWATER-31-01601 - Water Utility Total39,037,3752,690,375 4,550,000 70,000 570,000 2,650,000 1,297,000 13,870,000 10,870,000 70,000 2,400,0002,690,375 4,550,000 70,000 570,000 2,650,00039,037,375GRAND TOTAL1,297,000 13,870,000 10,870,000 70,000 2,400,000WATER - 6 City of OtsegoWater Utility FundCash Flow SummaryRevised: November 18, 2021Rate Increase3.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%New Connections403                         410                         261                         222                         222                        222                       222                       222                       222                       222                       222                        222                        Actual Forecast Budget2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031Water FundWater Sales 1,484,822$           2,124,981$           1,661,423$           1,789,135$           1,927,129$           2,075,842$          2,230,911$          2,397,213$          2,575,580$          2,766,539$          2,943,822$           3,120,451$          Water Sales ‐ Irrigation 220,266                 419,732                 189,000                 189,000                 189,000                 189,000               189,000               189,000               189,000               189,000               189,000                189,000                Penalties and Interest 19,757                   42,000                   38,000                   38,000                   38,000                   38,000                 38,000                 38,000                 38,000                 38,000                 38,000                  38,000                  Meter Sales 149,431                 86,000                   93,177                   ‐                              ‐                             ‐                            ‐                            ‐                            ‐                            ‐                            ‐                             ‐                             Special Assessments 89,593                   ‐                              ‐                              ‐                              ‐                             ‐                            ‐                            ‐                            ‐                            ‐                            ‐                             ‐                             Antenna Rentals 80,068                   86,050                   89,853                   89,853                   89,853                   89,853                 89,853                 89,853                 89,853                 89,853                 89,853                  89,853                  Investment Interest (Net) 165,845                ‐                             ‐                              48,501                  45,401                  44,910                42,426                32,735                43,809                47,195                89,791                 ‐                             Miscellaneous65,164                  42,768                  49,572                  15,957                  16,276                  16,602                16,934                17,273                17,618                17,970                18,329                 ‐                             Transfers In‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Bond Proceeds‐                              4,596,118            ‐                              6,532,500            ‐                            ‐                           ‐                           ‐                            16,500,000        15,000,000        ‐                            ‐                             WAC FundConnection Fees1,634,683            1,580,473            727,054                654,948                661,388                668,150              674,912              681,674              688,436              695,198              702,282               709,366                Special Assessments222,960                63,909                  62,419                  60,930                  49,358                  48,196                33,663                31,733                ‐                           ‐                           ‐                            ‐                             Investment Interest (Net)105,427                ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Total4,238,016            9,042,031            2,910,498            9,418,824            3,016,405            3,170,553          3,315,699          3,477,481          20,142,296        18,843,755        4,071,077           4,146,670            ExpensesPersonal Servcies138,533                151,624                191,874                198,191                204,137                210,261              236,569              243,666              270,976              279,105              287,478               296,102                Supplies248,379                375,576                533,868                282,433                288,082                293,843              299,720              305,715              311,829              318,065              324,427               330,915                Insurance10,514                  11,878                  13,022                  13,282                  13,548                  13,819                14,095                14,377                14,665                14,958                15,257                 15,562                  Utilities98,075                  92,000                  103,000                105,060                107,161                109,304              111,491              113,720              115,995              118,315              120,681               123,095                Services & Other Charges449,461                947,583                319,775                329,368                339,249                349,427              359,910              370,707              381,828              393,283              405,081               417,234                Depreciation628,728                854,868                875,778                1,067,049            1,083,070            1,106,414          1,154,249          1,171,539          1,623,514          2,030,152          2,227,197           2,294,013            Debt Service ‐ Principal840,600                ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Debt Service ‐ Interest208,580                ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Debt Service ‐ Fiscal Agent Fees609                        92,872                  ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Capital Outlay2,433,950            ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Capital Outlay (General)‐                              17,500                  30,000                  ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Capital Outlay (Fleet)‐                              12,250                  ‐                              61,500                  48,000                  15,500                181,000              66,000                15,750                ‐                           16,250                 ‐                             Capital Outlay (CIP)‐                              3,774,510            2,775,375            4,550,000            70,000                  570,000              2,650,000          1,297,000          13,870,000        10,870,000        70,000                 2,400,000            Capital Outlay (Distribution)‐                              316,095                145,411                130,990                132,278                133,630              134,982              136,335              137,687              139,040              140,456               141,873                Capital Outlay (R & R Plan)‐                              50,000                  50,000                  50,000                  50,000                  50,000                50,000                50,000                50,000                50,000                50,000                 50,000                  Debt Service (2010C)‐                              1,004,418            ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Debt Service (2019A)‐                              50,760                  50,760                  50,760                  270,360                556,776              555,984              ‐                           ‐                           ‐                           ‐                            ‐                             Debt Service (2021A)‐                             ‐                              78,159                  303,130                331,155                333,505              330,630              332,530              334,130              330,505              334,655               336,630                Debt Service (2021B)‐                             ‐                              993,346                1,002,060            576,720                206,370              206,010              ‐                           ‐                           ‐                           ‐                            ‐                             Debt Service (Projected)‐                             ‐                             ‐                              527,607                527,607                527,607              527,607              527,607              527,607              1,583,804          2,543,983           2,543,983            Transfers Out ‐ General Fund62,564                  62,450                  73,375                  75,576                  77,844                  80,179                82,584                85,062                87,614                90,242                92,949                 95,738                  Transfers Out ‐ Jet Vac‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             Total5,119,993            7,814,384            6,233,743            8,747,007            4,119,210            4,556,635          6,894,831          4,714,257          17,741,594        16,217,469        6,628,415           9,045,145            Cash Balance ‐ Beginning8,277,428            7,902,776            9,985,291            7,537,825            9,276,691            9,256,956          8,977,288          6,552,405          6,487,167          10,511,383        15,167,822         14,837,681          Balance Sheet Effects(121,403)              Revenues4,238,016            9,042,031            2,910,498            9,418,824            3,016,405            3,170,553          3,315,699          3,477,481          20,142,296        18,843,755        4,071,077           4,146,670            Expenditures(5,119,993)           (7,814,384)           (6,233,743)           (8,747,007)           (4,119,210)           (4,556,635)         (6,894,831)         (4,714,257)         (17,741,594)      (16,217,469)      (6,628,415)          (9,045,145)           Noncash ‐ Depreciation628,728                854,868                875,778                1,067,049            1,083,070            1,106,414          1,154,249          1,171,539          1,623,514          2,030,152          2,227,197           2,294,013            Cash Balance ‐ Ending7,902,776$          9,985,291$          7,537,825$          9,276,691$          9,256,956$          8,977,288$         6,552,405$         6,487,167$         10,511,383$      15,167,822$      14,837,681$       12,233,218$       Cash Balance ReserveOperating (100% of Next Year)2,495,979$          2,110,692$          2,070,960$          2,113,091$          2,163,247$          2,258,618$         2,304,786$         2,806,420$         3,244,120$         3,473,071$         3,572,659$          Debt Service (100% of Next Year)1,055,178            1,122,265            1,883,557            1,705,842            1,624,258            1,620,231          860,137              861,737              1,914,309          2,878,638          2,880,613           Total Cash Reserve Recommendation3,551,157            3,232,957            3,954,517            3,818,933            3,787,505            3,878,849          3,164,923          3,668,157          5,158,429          6,351,709          6,453,272           Percentage of Cash Reserve on Hand222.54% 308.86% 190.61% 242.91% 244.41% 231.44% 207.03% 176.85% 203.77% 238.80% 229.92%ProjectedX:\Budget\2022\Cash Flows\Utility FundsCombined Water (601+360)WATER - 7 City of OtsegoEnterprise Fund Budget ‐ 2022Department RequestsSanitary Sewer UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2019 2020 2021 2021 2022 CommentsRevenues602 49450 37200 SEWER SALES 2,155,268$        2,434,760$       2,683,208$       2,591,103$       3,008,688$       Based on Utility Rate Study602 49450 31900 PENALTIES AND INTEREST 91,420                34,594              48,865              68,000              60,000              Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD)TOTAL ‐ OPERATING2,246,688          2,469,354        2,732,074        2,659,103        3,068,688       602 49450 33100 FEDERAL GRANTS AND AIDS ‐                          1,633                ‐                         ‐                         ‐                        602 49450 36210 INTEREST EARNINGS 28,289                20,127              ‐                         ‐                         ‐                        602 49450 36213 NEY CHANGE IN INVESTMENT FMV 14,097                16,377              ‐                         ‐                         ‐                        602 49450 36232 CAPITAL CONTRIB. DEVELOPERS 675,800              729,598            ‐                         ‐                         ‐                        602 49450 38991 REFUNDS & REIMBURSEMENTS 8,000                  4,319                9,400                ‐                         ‐                        602 49450 39250 TRANSFER IN ‐ CAPITAL ASSETS 11                       100,745            ‐                         ‐                         ‐                        602 49450 39300 PROCEEDS ‐ BONDS ISSUED ‐                          (0)                       6,230,399         8,100,000         15,500,000      Accounts for Budgeted 2022 East WWTF & West WWTF Projects CostsTOTAL ‐ NON OPERATING726,198              872,798            6,239,799        8,100,000        15,500,000     TOTAL ‐ REVENUES 2,972,885          3,342,153        8,971,872        10,759,103      18,568,688     Expenses602 49450 101 FULL‐TIME EMPLOYEES REGULAR 235,431              287,186            252,608            320,083            405,835            Includes FT Hire (Based on January 2022 Hiring Timeline)602 49450 102 WAGES ‐ FT OVERTIME 14,490                14,302              16,279              11,250              15,000             602 49450 104 WAGES ‐ PT EMPOYEES 17,444                2,396               13,805             13,650             13,650             Includes 1 Seasonal Staff (26 Week Position @ 40 Hours)602 49450 121 PERA18,739               22,182             20,147             24,850             31,562             602 49450 122 FICA AND MEDICARE19,480               21,678             20,810             26,391             33,238             602 49450 130 OTHER EMPLOYER PAID INS35,881               41,037             34,198             44,509             60,694             602 49450 150 WORKERS COMPENSATION10,802               12,545             22,485             14,143             15,644             Based on Actual 2021‐2022 Premiums + 3% Inflation602 49450 191 GERF PENSION EXPENSE4,366                 14,014             ‐                        ‐                        ‐                        TOTAL ‐ PERSONAL SERVICES356,633             415,339           380,331           454,876           575,623           602 49450 201 OFFICE SUPPLIES AND EXPENSES5,056                 6,680               4,877               5,000               6,000                Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD)602 49450 202 FUEL11,256               8,741               4,395               12,078             10,044             Allocated 25% of 5,368 Gallons (2020 Actual) at $3.00 (Same Rate as Fleet)602 49450 206 POSTAGE6,184                 9,930               7,013               13,200             15,300             Allocated 50% of Monthly Bill Mailings (5,100 Accounts  at $0.50)602 49450 210 OPERATING SUPPLIES18,954               19,361             17,368             25,000             25,000             See Detailed Attachment602 49450 216 CHEMICAL SUPPLIES32,625               31,825             52,823             85,000             140,800           See Detailed Attachment602 49450 220 REPAIRS/MAINT SUPPLIES102,152             74,826             65,873             80,665             50,000             See Detailed Attachment602 49450 225 UNIFORMS/CLOTHING ALLOWANCE2,489                 2,713               2,265               2,075               2,350                See Detailed Attachment602 49450 227 SAFETY SUPPLIES106                    483                   9,707               2,200               2,500               602 49450 240 SMALL TOOLS/EQUIPMENT4,227                 4,876               7,224               5,000               5,000               60249450 298 W/S FLEET EXPENSES7,339                 13,733             ‐                        7,500               26,000             Includes Jet Vac Repair Estimate ($15k)TOTAL ‐ SUPPLIES190,387             173,167           171,546           237,718           282,994           49450 ‐ Sanitary Sewer Utility FundAccount NumberX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUTSewer FundSEWER - 1 City of OtsegoEnterprise Fund Budget ‐ 2022Department RequestsSanitary Sewer UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2019 2020 2021 2021 2022 Comments49450 ‐ Sanitary Sewer Utility FundAccount Number602 49450 301 LEGAL SERVICES‐                         2,364               8,126               500                   2,000               602 49450 302 ENGINEERING FEES1,217,884          804,174           1,374,617        2,916,000        45,000             See Detailed Attachment602 49450 303 PLANNING FEES100                    2,000               1,225               500                   1,000               602 49450 306 PERMIT & FEES9,830                 7,350               18,200             7,350               7,350                See Detailed Attachment602 49450 309 SOFTWARE & SUPPORT‐                         ‐                        1,700               ‐                        ‐                        602 49450 315 GIS SERVICES4,661                 1,279               4,595               5,000               5,000               602 49450 320 TELEPHONE6,526                 6,109               7,033               7,605               8,865                See Detailed Attachment602 49450 321 MILEAGE/TRAVEL418                    167                   298                   300                   400                   602 49450 322 UTILITIES198,581             221,114           223,705           206,000           226,000           Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD)602 49450 325 GARBAGE SERVICE20,216               23,037             17,843             20,000             29,260             Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD) + 33%602 49450 350 PRINT & PUBLISHING88                      128                   96                     300                   300                    Statutory Publish Requirements (Budget & Financial Statements)602 49450 355 DUES & MEMBERSHIPS419                    372                   372                   440                   65                      Suburban Utility Superintendent's Association ‐ Allocated 50%602 49450 360 EDUCATION/TRAINING/CONFERENCES3,707                 2,908               4,424               4,700               6,300                See Detailed Attachment602 49450 361 LIABILITY AND PROPERTY INSURAN34,711               35,245             27,904             39,904             50,113             Based on Actual 2021‐2022 Premiums + 5% Inflation602 49450 390 CONTRACTED SERVICES150,907             193,755           141,876           135,300           152,800           See Detailed Attachment602 49450 402 REPAIRS/MAINT BUILDINGS‐                         ‐                        ‐                        1,000               10,000             Door and Security Improvements602 49450 410 RENTALS1,882                 2,176               3,212               1,465               2,465                Folding & Envelope Stuffing Machine ‐ Lease Payments & R/M Allowance602 49450 419 BIOSOLIDS HAULING42,852               276,772           129,501           157,500           48,700             See Detailed Attachment602 49450 437 BANK SERVICE CHARGES30,970               30,032             33,878             31,500             34,650             Estimated ‐ Represents Average of Actuals for 2019‐2021 (YTD) + 5%TOTAL ‐ SERVICES & OTHER CHARGES1,723,752         1,608,981       1,998,605       3,535,364       630,268           602 49450 500 CAPITAL OUTLAY (GENERAL)753                    6,072               ‐                        ‐                        ‐                        602 49450 501 EQUIPMENT38,409               87,150             18,336             52,500             ‐                        602 49450 530 IMPROVEMENTS OTHER THAN BLDG135,147             8,067,201        5,816,765        7,500,000        16,120,000     See Detailed Attachment602 49450 550 MOTOR VEHICLES‐                          32,675             26,615             36,750             325,000           Utility Tanker Truck + Tandem Axle Dump Truck602 49450 590 REHABILITATION & REPLACEMENT49,500               ‐                        ‐                         225,000           250,000           See Detailed Attachment602 49450 599 CAPITALIZED ASSET OFFSET(1,385,227)        (9,001,936)      ‐                        ‐                        ‐                        TOTAL ‐ CAPITAL OUTLAY(1,161,417)        (808,837)         5,861,717       7,814,250       16,695,000     602 49450 420 DEPRECIATION988,308             1,026,089        ‐                         1,544,667        1,877,356        Based on Utility Rate Study602 49450 601 BOND PRINCIPAL‐                         ‐                         130,866           ‐                         808,000           Debt Service ‐ 2020 PFA602 49450 602 BOND INTEREST‐                          33,327             110,709           ‐                         187,625           Debt Service ‐ 2020 PFA602 49450 620 FISCAL AGENT FEES‐                          17,500             ‐                        ‐                        ‐                        602 49450 720 OPERATING TRANSFERS328,490             249,795           ‐                         272,565           220,125           Administrative Contribution to General FundTOTAL ‐ OTHER1,316,798         1,326,712       241,575           1,817,232       3,093,106       TOTAL ‐ EXPENSES2,426,153         2,715,362       8,653,774       13,859,440     21,276,991     NET INCOME / (LOSS)546,732$           626,791$          318,098$          (3,100,337)$     (2,708,303)$     X:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUTSewer FundSEWER - 2 City of OtsegoEnterprise Fund Budget ‐ 2022Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudget Budget2021 2022 Item Detail / Description Comments24,000$              24,000$              Facility Operations & Preventative Maintenance Supplies1,000                  1,000                  Collection System / Lift Stations Operations & Maintenance Supplies‐                           ‐                          25,000                25,000               30,000$              33,000$              Ferric Chloride ‐ Phosphorous Removal 15,000                15,000                Polymer ‐ Belt Thickening Process30,000                50,400                Lime ‐ Solids Processing10,000                42,000                Polymer ‐ Solids Processing‐                           400                      Sulfamic Acid ‐ Solids Processing‐                           ‐                          85,000                140,800             15,000$              15,000$              East Wastewater Treatment Faciltiy Corrective Maintenance15,000                15,000                West Wastewater Treatment Facility Corrective Maintenance8,000                  8,000                  Lift Stations Corrective Maintenance10,000                12,000                Collection System Corrective Maintenance (Ex. Chimney Replacements)17,665                ‐                           West WWTF ‐ Odor Control Media Exchange5,000                  ‐                           Landscaping & Screening10,000                ‐                           Ultraviolet Bulbs‐                           ‐                          80,665                50,000               1,400$                1,600$               Clothing Allowance = $400 x 8 Operators (50% Allocation)525                      600                     Boot Allowance = $150 x 8 Operators (50% Allocation)75                        75                       Clothing Allowance = $150 x 1 Seasonal Operators (50% Allocation)75                        75                       Boot Allowance = $150 x 1 Seasonal Operators (50% Allocation)‐                           ‐                          2,075                  2,350                 25,000$             30,000$              General Sewer Engineering (Regulatory, Collection System, Consultation)600,000             ‐                           AE2S ‐ East Solids Project Design & Construction Management and Oversight‐                          15,000                AE2S ‐ Instrumentation2,291,000          ‐                          West WWTF Liquid Capacity Expansion ‐ Preliminary Design‐                          ‐                          2,916,000         45,000               5,900$               5,900$                MPCA ‐ Municipal Permit Annual Fee ‐ East WWTF1,450                 1,450                  MPCA ‐ Municipal Permit Annual Fee ‐ West WWTF‐                          ‐                          7,350                 7,350                 PERMITS & FEES602‐49450‐220Account No. & Description602‐49450‐210OPERATING SUPPLIES602‐49450‐216CHEMICAL SUPPLIESR/M SUPPLIES602‐49450‐302ENGINEERING FEESRepair and maintenance related to aging equipment and infrastucture.602‐49450‐225UNIFORMS/CLOTHING ALLOWANCE602‐49450‐306X:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUT602-DetailSEWER - 3 City of OtsegoEnterprise Fund Budget ‐ 2022Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudget Budget2021 2022 Item Detail / Description CommentsAccount No. & Description2,640$                3,240$               Employee Cell Phones ($45 x 8) + Replacement Phones ($0) ‐ Allocated 75%2,040                  960                     CenturyLink Alarm Phone Lines at Facilities ($80 Per Month)240                      780                     Answering Service ($65 Monthly)960                     1,200                 Land Line Telephone Service ($100 Monthly)450                     810                     Tablet's Data Plan ($45 x 2) ‐ Allocated 75%525                     525                     WIN‐911 Remote Monitoring Mobile Application ‐ Allocated 75%750                     1,350                 Charter Communications ‐ Internet Services ‐ ($25 Per Month)‐                          ‐                          7,605                 8,865                 1,350$               2,000$               Citywide Safety Program Training & LMC Learn2,100                 2,800                 Operator Certification Licensing and Training ($350 x 8 Operators)1,250                 1,500                  Leadership & Supervisory Training‐                          ‐                          4,700                 6,300                 45,000$             47,000$              East & West WWTF Permit Required Certified Lab Analysis51,931               52,032                Locates (Hakanson) ‐ Based on 2019 ‐ 2021 YTD Monthly Average + 5%3,047                 3,628                  Locates (Gopher One) ‐ Based on 2019 ‐ 2021 YTD Monthly Average + 5%                12,000                  12,000 Electrical1,700                 6,000                  Security Monitoring & Fire Monitoring                  2,200                    2,200 Lawn Services ‐ Spraying                  4,500                    4,500  Equipment inspections / Testing ‐ Generators                   5,000                    5,000  Collection System Repairs                  4,000                    7,000  Mechanical ‐ Heating & Air Conditioning                     300                       400 800Mhz Infrastructure fees ($100 per radio) Wright County1,000                 1,000                 Video Camera Services ‐ Inspect Sewer Lines for Grease2,000                 2,000                 Meter Calibrations2,600                 ‐                          Janitorial Services at East and West WWTF‐                          5,000                 VFD Inspections & Preventative Maintenance‐                          4,290                 Aveva WonderWare Customer Support Agreement ‐ 50% Allocation‐                          750                     OpWorks Software Agreement ‐ 50% Allocation22                       1                         Rounding Contingency + Inflationary Factor‐                          ‐                          135,300             152,800             19,800$             11,700$             Class B Biosolids Land Application27,000               4,400                 Material Transport ‐ West Digester Material to East WWTF55,200               ‐                           Material Transport & Processing ‐ West Digester Material to Big Lake Facility42,500               20,000                Landfill Disposal ‐ East WWTF Biosolids Material13,000               ‐                           30 Yard Containters‐                          12,600                Contracted Transportation of Rolloff Containers‐                          ‐                          157,500             48,700               602‐49450‐320TELEPHONE602‐49450‐360EDUCATION / TRAINING / CONFERENCE602‐49450‐390CONTRACTED SERVICES602‐49450‐419BIOSOLIDS HAULING/DISPOSALX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUT602-DetailSEWER - 4 City of OtsegoEnterprise Fund Budget ‐ 2022Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudget Budget2021 2022 Item Detail / Description CommentsAccount No. & Description7,500,000$        500,000$           East WWTF Biosolids ‐ CIP Amount‐                           15,000,000       West WWT Liquids Capacity Expansion ‐ CIP Amount‐                           500,000              West WWTF Access Road‐                          120,000              Lift Station #2 Improvements‐                          ‐                          7,500,000         16,120,000       225,000$           93,500$              Ongoing investment for costs of R&R as identified in Wastewater Treatment Master Plan.‐                          24,500                Poly Skid/Blend system‐                          18,000                Odor Control Media Changeout‐                          14,000                WW Flow Meter‐                          10,000                Disinfection Process related‐                          60,000                Forcemain repair‐                          30,000                Aerator Gear Box Rehabilitation‐                          ‐                          225,000             250,000             602‐49450‐590REHABILITATION & REPLACEMENT602‐49450‐530IMPROVEMENTS OTHER THAN BUILDINGSX:\Budget\2022\Utility Funds\2022 UTILITY BUDGETS INPUT602-DetailSEWER - 5 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2022 2031thruTotal2022 2023 2024 2025 2026Source2027 2028 2029 2030 2031 #602 - Sanitary Sewer Utility500,000500,000East WWTF - Dewatering & Chemical StabilizationSEWER-20-0137,000,00015,000,000 20,000,000 2,000,000West WWTF Liquids Capacity ExpansionSEWER-22-011,500,000500,000 1,000,000West WWTF - Access RoadSEWER-22-02120,000120,000Lift Station #2 ImprovementsSEWER-22-031,500,000100,000 1,400,000New Lift StationSEWER-24-01500,000500,000Lift Station #4 ImprovementsSEWER-26-01500,000500,000Lift Station #3 ImprovementsSEWER-28-011,500,000100,000 1,400,000New Lift StationSEWER-29-01500,000500,000Lift Station #1 ImprovementsSEWER-30-01750,000750,000East WWTF - Ditch #3 EquipmentSEWER-31-01602 - Sanitary Sewer Utility Total44,370,00016,120,000 20,100,000 3,400,000 1,500,000 600,000 1,400,000 500,000 750,00016,120,000 20,100,000 3,400,0001,500,00044,370,000GRAND TOTAL600,000 1,400,000 500,000 750,000SEWER - 6 City of OtsegoSewer Utility FundCash Flow SummaryRevised: November 18, 2021Rate Increase8.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 5.00% 5.00% 5.00% 5.00% 2.00%New Connections403                       410                       261                       222                       222                      222                     222                     222                     222                     222                      222                       222                      Actual Forecast Budget202020212022202320242025202620272028202920302031Sanitary Sewer FundUser Charges2,434,760$          2,930,299$          3,016,688$          3,378,000$          3,780,599$         4,232,745$         4,737,234$         5,059,699$         5,402,517$         5,766,341$         6,102,040$          6,224,081$          Penalties34,594                  68,000                  60,000                  60,000                  60,000                 60,000                60,000                60,000                60,000                60,000                60,000                  60,000                 Investment Interest (Net)36,504                  ‐                             ‐                              75,373                  70,754                 36,646                29,828                15,911                22,168                30,437                39,377                  ‐                            Non‐Operating5,952                    ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            Transfers In‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            Bond Proceeds9,438,936            7,834,341            13,262,400          20,253,272          ‐                            ‐                           ‐                           ‐                            1,000,000          ‐                            ‐                             ‐                            SAC FundConnection Fees4,728,563            4,325,237            2,547,455            2,232,124            2,254,338           2,276,774          2,299,532          2,322,512          2,345,714          2,369,238          2,392,984            2,416,952            Special Assessments841,972               198,231               193,832               189,433               155,675              152,231             127,148             121,304             ‐                           ‐                            ‐                             ‐                            Investment Interest367,703               ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            Total17,888,984          15,356,108          19,080,375          26,188,202          6,321,366           6,758,396          7,253,742          7,579,426          8,830,399          8,226,016          8,594,401            8,701,033            ExpensesPersonal Servcies415,340               454,876               575,623               594,577               612,414              630,787             709,710             731,002             812,932             837,320             862,439               888,312              Supplies173,168               237,718               282,994               288,654               294,427              300,315             306,322             312,448             318,697             325,071             331,573               338,204              Insurance35,245                  39,904                  50,113                  51,115                  52,138                 53,180                54,244                55,329                56,435                57,564                58,715                  59,890                 Utilities250,260               206,000               226,000               230,520               235,130              239,833             244,630             249,522             254,513             259,603             264,795               270,091              Services & Other Charges1,323,477            3,289,460            354,155               364,780               375,723              386,995             398,605             410,563             422,880             435,566             448,633               462,092              Depreciation1,026,089            1,544,667            1,877,356            2,402,810            2,490,188           2,520,694          2,567,586          2,606,195          2,667,941          2,709,602          2,765,274            2,820,579            Debt Service ‐ Principal1,494,400            ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            Debt Service ‐ Interest404,135               ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            Debt Service ‐ Fiscal Agent Fees18,953                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                             ‐                            Capital Outlay8,193,098             ‐                              ‐                              ‐                              ‐                             ‐                            ‐                            ‐                            ‐                            ‐                             ‐                              ‐                            Capital Outlay (General) ‐                              52,500                   ‐                              ‐                              ‐                             ‐                            ‐                            ‐                            ‐                            ‐                             ‐                              ‐                            Capital Outlay (Fleet) ‐                              36,750                   325,000                184,500                144,000               46,500                 543,000              198,000              47,250                 ‐                             48,750                   ‐                            Capital Outlay (Current CIP) ‐                              7,500,000             16,120,000           20,100,000           3,400,000            ‐                            1,500,000           ‐                            600,000              1,400,000           500,000                750,000              Capital Outlay (Collection)‐                              1,730,095             1,018,982             892,850                901,735               910,710              919,813              929,005              938,286              947,695              957,194                966,781              Capital Outlay (R & R Plan)‐                              225,000                250,000                275,000                300,000               325,000              350,000              375,000              400,000              425,000              450,000                450,000              Debt Service (2010C) ‐                              1,785,632             ‐                              ‐                              ‐                             ‐                            ‐                            ‐                            ‐                            ‐                             ‐                              ‐                            Debt Service (2019A) ‐                              90,240                   90,240                   90,240                   480,640               989,824              988,416              ‐                            ‐                            ‐                             ‐                              ‐                            Debt Service (2020 PFA) ‐                              241,575                995,625                1,005,790             1,006,305            1,006,704           1,005,986           1,006,164           1,006,226           1,006,171           1,006,001             1,006,715            Debt Service (2021B) ‐                              ‐                              1,765,948             1,781,440             1,025,280            366,880              366,240              ‐                            ‐                            ‐                             ‐                              ‐                            Debt Service (Projected) ‐                              ‐                              ‐                              331,560                331,560               1,241,244           1,241,244           1,666,953           1,666,953           1,730,965           1,730,965             1,730,965            Transfers Out ‐ General Fund 164,067                182,325                220,125                226,729                233,531               240,537              247,753              255,185              262,841              270,726              278,848                287,213              Transfers Out ‐ Jet Vac ‐                              ‐                              ‐                              ‐                              ‐                             ‐                            ‐                            ‐                            ‐                            ‐                            ‐                             ‐                            Total13,498,232          17,616,742          24,152,161          28,820,564          11,883,071         9,259,202          11,443,548        8,795,366          9,454,953          10,405,283        9,703,187            10,030,842          Cash Balance ‐ Beginning9,823,622            14,621,871          13,905,904          10,711,474          10,481,922         7,410,405          7,430,293          5,808,073          7,198,328          9,241,715          9,772,050            11,428,539          Balance Sheet Effects(618,592)              Revenues17,888,984          15,356,108          19,080,375          26,188,202          6,321,366           6,758,396          7,253,742          7,579,426          8,830,399          8,226,016          8,594,401            8,701,033            Expenditures(13,498,232)        (17,616,742)        (24,152,161)        (28,820,564)        (11,883,071)        (9,259,202)         (11,443,548)      (8,795,366)         (9,454,953)         (10,405,283)      (9,703,187)           (10,030,842)        Noncash ‐ Depreciation1,026,089            1,544,667            1,877,356            2,402,810            2,490,188           2,520,694          2,567,586          2,606,195          2,667,941          2,709,602          2,765,274            2,820,579            Cash Balance ‐ Ending14,621,871$       13,905,904$       10,711,474$       10,481,922$       7,410,405$        7,430,293$        5,808,073$        7,198,328$        9,241,715$        9,772,050$        11,428,539$       12,919,308$       Cash Balance ReserveOperating (100% of Next Year)5,954,950$          3,586,366$          4,159,185$          4,293,551$          4,372,341$         4,528,849$         4,620,244$         4,796,238$         4,895,452$         5,010,277$         5,126,382$          5,245,884$          Debt Service (100% of Next Year)2,117,447            2,851,813            3,209,030            2,843,785            3,604,652           3,601,886          2,673,117          2,673,179          2,737,136          2,736,966          2,737,680            2,737,265            Total Cash Reserve Recommendation 8,072,397            6,438,179            7,368,215            7,137,336            7,976,993           8,130,735          7,293,361          7,469,417          7,632,588          7,747,243          7,864,062            7,983,149            Percentage of Cash Reserve on Hand181.13% 215.99% 145.37% 146.86%92.90% 91.39% 79.64% 96.37%121.08% 126.14% 145.33% 161.83%ProjectedX:\Budget\2022\Cash Flows\Utility FundsCombined Sewer (602+361)SEWER - 7 City of OtsegoStorm Water Utility Fund Budget ‐ 2022Department RequestsRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2019 2020 2021 2021 2022 CommentsRevenues220 49490 31010 CURRENT AD VALOREM TAXES30,000$            32,000$            17,000$            34,000$            36,000$            TOTAL ‐ OPERATING30,000              32,000             17,000             34,000             36,000             220 49490 36210 INTEREST EARNINGS552                    689                   ‐                        ‐                        ‐                        220 49490 36213 NET CHANGE IN INVESTMENT FMV275                    560                   ‐                        ‐                        ‐                        TOTAL ‐ NON OPERATING827                   1,249               ‐                        ‐                        ‐                        TOTAL ‐ REVENUES30,827              33,249             17,000             34,000             36,000             Expenses220 49490 220 REPAIRS/MAINT SUPPLIES‐                         685                   ‐                        ‐                        ‐                        220 49490 292 CULVERTS14,390              ‐                        2,530               21,000             21,000             Lump Sum ‐ Replacement of Storm Water CulvertsTOTAL ‐ SUPPLIES14,390              685                  2,530               21,000             21,000             220 49490 301 LEGAL SERVICES‐                         ‐                        ‐                        500                   500                   220 49490 302 ENGINEERING FEES4,769                ‐                        ‐                        6,000               6,000                25% of Culvert Costs ‐ Engineering OversightTOTAL ‐ SERVICES & OTHER CHARGES4,769                 ‐                         ‐                         6,500                6,500               TOTAL ‐ EXPENSES19,159              685                  2,530               27,500             27,500             NET INCOME / (LOSS)11,669$            32,564$            14,470$            6,500$              8,500$              Change ($)2,000              Change (%)30.77%49490 ‐ Storm Water Utility Fund (Out‐of‐District)Account NumberSTORM - 1 City of OtsegoStorm Water Utility Fund (Out District)Cash Flow SummaryRevised: November 18, 20216.25% 5.88% 5.56% 5.26% 5.00% 4.76% 4.55% 4.35% 4.17% 4.00% 3.85%Actual Forecast Budget2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesProperty Taxes 32,000$                34,000$                36,000$                38,000$                40,000$               42,000$               44,000$               46,000$               48,000$               50,000$                52,000$                54,000$              Investment Interest 1,249                     ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Transfers In ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Total 33,249                  34,000                  36,000                  38,000                  40,000                 42,000                44,000                46,000                48,000                50,000                 52,000                  54,000               ExpensesPersonal Services ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Supplies 685                        21,000                  21,000                  21,500                  22,000                 22,500                23,000                23,500                24,000                24,500                 25,000                  25,500               Engineering ‐                             6,000                    6,000                    6,500                    7,000                   7,500                  8,000                  8,500                  9,000                  9,500                   10,000                 10,500               Other Charges & Services‐                            500                       500                       500                       500                      500                     500                     500                     500                     500                      500                       500                     Capital Outlay‐                            ‐                            ‐                            ‐                            ‐                           ‐                          ‐                          ‐                          ‐                          ‐                           ‐                           ‐                          Transfers Out‐                            ‐                            ‐                            ‐                            ‐                           ‐                          ‐                          ‐                          ‐                          ‐                           ‐                           ‐                          Total685                       27,500                 27,500                 28,500                 29,500                30,500               31,500               32,500               33,500               34,500                35,500                 36,500               Cash Balance ‐ Beginning25,425                 57,936                 64,436                 72,936                 82,436                92,936               104,436             116,936             130,436             144,936              160,436               176,936             Balance Sheet Effects(53)                        Revenues33,249                 34,000                 36,000                 38,000                 40,000                42,000               44,000               46,000               48,000               50,000                52,000                 54,000               Expenditures(685)                      (27,500)                (27,500)                (28,500)                (29,500)               (30,500)              (31,500)              (32,500)              (33,500)              (34,500)               (35,500)                (36,500)              Cash Balance ‐ Ending57,936$               64,436$               72,936$               82,436$               92,936$              104,436$            116,936$            130,436$            144,936$            160,436$             176,936$             194,436$            ProjectedX:\Budget\2022\Cash Flows\Utility Funds220-Storm(Out)STORM - 2 City of OtsegoStorm Water Utility Fund Budget ‐ 2022Department RequestsRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2019 2020 2021 2021 2022 CommentsRevenues222 49490 37500 STORMWATER UTILITY CHARGES72,056$            85,983$            87,919$            85,989$            89,986$            Includes 0% Rate Increase ‐ See Cash Flow222 49490 31900 PENALTIES AND INTEREST2,171                737                   (1,654)              ‐                        TOTAL ‐ OPERATING74,227              86,720             86,265             85,989             89,986             222 49490 36100 SPECIAL ASSESSMENTS35,145              33,859             18,409             33,205             33,205             Assessment Roll to Wright County222 49490 36210 INTEREST EARNINGS6,966                6,342               ‐                        ‐                        ‐                        222 49490 36213 NET CHANGE IN INVESTMENT FMV3,471                5,161               ‐                        ‐                        ‐                        222 49490 36232 CAPITAL CONTRIB. DEVELOPERS470,411             454,473           ‐                        ‐                        ‐                        222 49490 39250 TRANSFER IN ‐ CAPITAL ASSETS517,302             166,048           ‐                        ‐                        ‐                        TOTAL ‐ NON OPERATING1,033,296         665,883           18,409             33,205             33,205             TOTAL ‐ REVENUES1,107,523         752,603           104,674           119,194           123,191           Expenses222 49490 119 PAYROLL ALLOCATION25,748              12,945             ‐                         10,000             10,000             Reimbursement Allocation to Streets DepartmentTOTAL ‐ PERSONAL SERVICES25,748               12,945              ‐                         10,000              10,000             222 49490 220 REPAIRS/MAINT SUPPLIES 2,122                 3,245                449                    2,500                2,500                Rip‐Rap‐Rock / FabricTOTAL ‐ SUPPLIES2,122                 3,245                449                   2,500                2,500               222 49490 301 LEGAL SERVICES ‐                          ‐                         ‐                         500                    500                   222 49490 302 ENGINEERING FEES 14,870               23,329              15,417              20,000              20,000              Annual Costs ‐ Stormwater Pollution Prevention Plan (SWPPP)222 49490 303 PLANNING FEES‐                         350                   50                     ‐                        ‐                        222 49490 315 GIS SERVICES‐                         ‐                        ‐                        1,000               1,000               222 49490 355 DUES & MEMBERSHIPS783                    780                   780                   800                   800                    LMC ‐ Annual Stormwater Coalition Contribution222 49490 360 EDUCATION/TRANING/CONFERENCE‐                         ‐                        375                   1,000               1,000               222 49490 390 CONTRACTED SERVICES1,784                ‐                        2,189               1,000               2,500                Animal Trapping222 49490 441 LICENSES, TAXES & FEES728                    581                   2                       3,000               3,000               TOTAL ‐ SERVICES & OTHER CHARGES18,165               25,040              18,813              27,300              28,800             222 49490 500 CAPITAL OUTLAY (GENERAL) ‐                          ‐                         2,697                ‐                         40,000              Hydraulic Mulcher ‐ Skid Steer Attachment222 49490 510 LAND ACQUSITION/EASEMENTS ‐                          1,500                ‐                         ‐                         ‐                        TOTAL ‐ CAPITAL OUTLAY‐                          1,500                2,697                ‐                         40,000             222 49490 420 DEPRECIATION 57,969               95,570              ‐                         70,000              120,000           222 49490 720 OPERATING TRANSFERS ‐                          35,738              ‐                         ‐                         ‐                        TOTAL ‐ OTHER57,969               131,308            ‐                         70,000              120,000           TOTAL ‐ EXPENSES104,005             174,037           21,959             109,800           201,300           NET INCOME / (LOSS)1,003,518$       578,565$          82,715$            9,394$              (78,109)$          Change ($)(87,503)           Change (%) ‐931.48%49490 ‐ Storm Water Utility Fund (In‐District)Account NumberSTORM - 3 City of OtsegoStorm Water Utility Fund (In District)Cash Flow SummaryRevised: November 18, 2021Actual Forecast Budget2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031RevenuesCharges for Services 86,720$                90,053$                90,053$                91,854$                93,691$               95,565$               97,476$               99,426$               101,414$             103,443$              105,511$              107,622$            Special Assessments 33,859                  33,205                  33,205                  33,205                  33,205                 33,205                33,205                33,205                33,205                33,205                 33,205                  33,205               Investment Interest 11,503                  ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Transfers In ‐                             ‐                             ‐                             ‐                             ‐                            ‐                           ‐                           ‐                           ‐                           ‐                            ‐                            ‐                          Total 132,082                123,258                123,258                125,059                126,896               128,770              130,681              132,631              134,619              136,648               138,716                140,827             ExpensesPersonal Services 12,945                  10,000                  10,000                  10,200                  10,404                 10,612                10,824                11,041                11,262                11,487                 11,717                  11,951               Supplies 3,245                     2,500                     2,500                    2,550                    2,601                   2,653                  2,706                  2,760                  2,815                  2,872                   2,929                    2,988                  Engineering23,329                 20,000                 20,000                 20,400                 20,808                21,224               21,649               22,082               22,523               22,974                23,433                 23,902               Other Charges & Services1,711                    7,300                    8,800                    8,976                    9,156                   9,339                  9,525                  9,716                  9,910                  10,108                10,311                 10,517               Depreciation95,570                 70,000                 120,000               120,000               120,000              120,000             120,000             120,000             120,000             120,000              120,000               120,000             Capital Outlay1,500                    ‐                            40,000                 ‐                            ‐                           ‐                          ‐                          ‐                          ‐                          ‐                           ‐                           ‐                          Transfers Out35,738                 ‐                            ‐                            ‐                            ‐                           ‐                          ‐                          ‐                          ‐                          ‐                           ‐                           ‐                          Total174,038               109,800               201,300               162,126               162,969              163,828             164,704             165,599             166,511             167,441              168,390               169,357             Cash Balance ‐ Beginning307,282               367,526               450,984               492,942               575,875              659,803             744,745             830,722             917,754             1,005,863           1,095,069            1,185,396          Balance Sheet Effects6,630                    Revenues132,082               123,258               123,258               125,059               126,896              128,770             130,681             132,631             134,619             136,648              138,716               140,827             Expenditures(174,038)              (109,800)              (201,300)              (162,126)              (162,969)             (163,828)            (164,704)            (165,599)            (166,511)            (167,441)             (168,390)              (169,357)            Noncash ‐ Depreciation95,570                 70,000                 120,000               120,000               120,000              120,000             120,000             120,000             120,000             120,000              120,000               120,000             Cash Balance ‐ Ending367,526$             450,984$             492,942$             575,875$             659,803$            744,745$            830,722$            917,754$            1,005,863$         1,095,069$          1,185,396$          1,276,866$         ProjectedX:\Budget\2022\Cash Flows\Utility Funds222-Storm(In)STORM - 4 City of Otsego General Fund Budget ‐ 2022 Budget Changes Tracking Total Expenditures ‐ Draft Budget Binder (August 6) 7,331,245$        Comprehensive Plan Update Planning 37,950                Staffing Changes Remove Parks & Recreation Operations Coordinator (51,208)               Add Parks & Recreation Seasonal 12,358                Total Expenditures ‐ Preliminary Budget (September 27) 7,330,345           City Website ‐ Annual Support Information Technology 2,940                  Human Resources Management Software ‐ BambooHR Human Resources 4,185                  New Contract for Cleaning Services City Hall & Public Works Building (3,000)                 Additional 800mhz Radios Purchased ‐ IT Service Fee Emergency Management 610                      Cell Phone and Tablet Provider Change Multiple Departments 3,080                  Contracted Services ‐ Based on 2019/2020 Actuals & 2021 YTD Legal (5,750)                 Engineering (2,500)                 New Contract Formula ‐ Elk River Fire Department Fire Protection 16,302                Wages & Benefits ‐ Compensation Study & Insurance Rates City Administrator (234)                    Administration (435)                    Finance (305)                    Human Resources (121)                    Building Safety (492)                    Streets Maintenance (1,189)                 Fleet Management (235)                    Parks Maintenance (470)                    Recreation (167)                    Property & Liability Insurance Rates Finalized City Council 1,239                  City Administrator 58                       Administration 55                       Finance (12)                       Human Resources 148                      Prairie Center 46                       City Hall & Public Works Building 306                      Building Safety 268                      Streets Maintenance 484                      Fleet Management 1,014                  Parks Maintenance 1,598                  Recreation 26                       Total Expenditures ‐ Final Budget  (December 13th) 7,347,794           16,549                Change X:\Budget\2022\General Fund\3.0 - 2022 FINAL BUDGETS INPUT City of Otsego Property Tax Levy Calculations Payable 2022 Revised: November 19, 2021 $% $% 2020 2021 2022 Change Change 2022 Change Change Comment General Revenues 4,518,000        4,671,000        4,977,000        306,000          6.55% 5,009,000      338,000          7.24%Reflects Expenditure Budget Changes Tax Abatements 56,491              45,874              40,422              (5,452)             ‐11.88% 40,422            (5,452)             ‐11.88% Debt Service Series 2010B 460,000            460,000            ‐                         (460,000)        ‐                       (460,000)        Series 2018A 91,758              94,551              97,187              2,636              97,187            2,636              Series 2020A 195,000            195,000            450,000            255,000          450,000          255,000          **NEW** ‐                         ‐                         ‐                         ‐                       ‐                       ‐                       Sub‐total 746,758            749,551            547,187            (202,364)        ‐27.00% 547,187          (202,364)        ‐27.00% Capital Reserves Pavement Management 950,000            1,050,000        1,100,000        50,000            1,100,000      50,000            Trails Management 33,000              40,000              43,000              3,000              43,000            3,000              Parks Equipment 60,000              62,000              64,000              2,000              64,000            2,000              Capital Equipment Revolving 280,000            300,000            320,000            20,000            320,000          20,000            Fire Reserve 180,000            190,000            200,000            10,000            200,000          10,000            Storm Water 32,000              34,000              36,000              2,000              36,000            2,000              Capital Improvements 318,000            661,000            1,227,396        566,396          1,195,396      534,396         Reduced to Offset General Fund Changes City Buildings & Property 20,000              25,000              30,000              5,000              30,000            5,000              Sub‐total 1,873,000        2,362,000        3,020,396        658,396          27.87% 2,988,396      626,396          26.52% Tax Rate Management (Flexibility) ‐                         ‐                       Grand Total 7,194,249        7,828,425        8,585,005        756,580          9.66% 8,585,005      756,580          9.66% Growth (%) 7.22% 8.82% Tax Capacity 20,742,285      22,876,221      25,086,375      25,086,375   Per Wright County (9‐9‐2021) Growth (%) 10.95% 10.29% 9.66% 9.66% Net Tax Capacity 20,497,278      22,591,258      24,773,881      24,773,881   98.75% of Tax Capacity (Based on 2021) Growth (%) 10.15% 10.22% 9.66% 9.66% Tax Rate 35.099              34.653              34.653              34.653            Population 17,323              18,130              19,966              19,966            Source = U.S. Census Bureau Tax Levy Per Capita 415                   432                   430                   430                 Taxing 2020 2021 2022 2022 Authority Final Tax Rate Final Tax Rate Estimate Change TNT Change City of Otsego 35.099              34.653              34.653              0.00% 34.653            0.00% Wright County 44.421              43.719              43.719              0.00% 43.564            ‐0.35% School District 34.371              31.717              31.717              0.00% 30.822            ‐2.82% School District ‐ RMV 29.961              30.598              30.598              0.00% 29.379            ‐3.98% Description 2020 2021 2022 Change 2022 Change Median Appraised Value 247,859            258,455            290,081            12.24% 290,081          12.24% Less: MV Exclusion (14,933)            (13,979)            (11,133)            (11,133)          Taxable Market Value 232,926            244,476            278,948            14.10% 278,948          14.10% Tax Capacity 2,329                2,445                2,789                2,789              2020 2021 2022 2022 Taxing Estimated Estimated Estimated Estimated Authority Tax Tax Tax Change Tax Change City of Otsego 818                   847                   967                   14.17% 967                 14.17% Wright County 1,035                1,069                1,220                14.13% 1,215              13.66% School District 801                   775                   885                   14.19% 860                 10.97% School District ‐ RMV 743                   791                   888                   12.26% 852                 7.71% Total 3,397                3,482                3,960                13.73% 3,894              11.83% Annual Increase 478                   412                 Preliminary Tax Levy (9‐27‐2021)Meeting #11 (11‐22‐2021) Levy Description 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. X:\Budget\2022\Property Taxes\Tax Levy Calculations 11‐22