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Item 2. 2023 Budget, Tax Levy and Capital Improvement Plan Review
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: June 27, 2022 SUBJECT: Budget Meeting #3 On Monday, Council and staff will continue the 2023 budgeting discussions. I have developed an outline of discussion topics below. Please note that the information presented during this meeting is for discussion only and that nothing is final or set in stone at this point of the process. Staff would only be asking for Council direction on the items below to move the budgeting process forward effectively and efficiently. Capital Project Funds The City maintains thirteen (13) capital project funds. None of these funds have an adopted revenue or expenditure budget; rather, the expenditure activity of the respective funds is included within the City’s ten‐year Capital Improvement Plan (CIP). Staff will review source and use cash flow projections with the City Council and further discuss recommendations on how to continue to provide adequate funding. A short narrative for each component of the capital reserve levy is as follows: Pavement Management This fund accounts for nearly all the street maintenance and renewal projects in the City. The funding for these projects comes from a property tax levy, franchise fees, special assessments, and municipal state aid maintenance dollars. Trails Management This fund accounts for the ongoing costs associated with the maintenance of the City’s trail system as well as the parking lots within the City’s Park system. Annual costs typically include crack filling, seal coating and trail renewals. The Park system continues to grow each year as the City builds new parks and trails. Item 2. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Parks Equipment Replacement This fund accounts for the accumulation of resources to provide for future replacement of major park capital items, including but not limited to shelters and playground equipment. The funding for these future expenditures solely comes from a property tax levy. Capital Equipment Revolving This fund accounts for the expenditure of funds associated with the City’s vehicle and equipment fleet. These expenditures are evaluated annually by staff and the City Council during the budget process and again in the year of purchase. The funding for these vehicle and equipment purchases comes from property tax levies or from utility operating revenues when applicable. Fire Station This fund accounts for the accumulation of resources for future costs associated with the construction of a fire station(s) within the City. Storm Water This levy is for the costs associated with the ongoing review, monitoring, repair, maintenance, and improvement of the storm water systems established prior to current requirements under the Clean Water Act. The funding for these expenditures solely comes from a property tax levy. Capital Improvements This fund accounts for the accumulation of resources to finance future capital improvements. The fund does not have a specific ongoing revenue source. City Buildings & Property Maintenance This fund accounts for the accumulation of resources to finance City buildings and property maintenance projects. Property Tax Levy At this time of the year, much of the information being used is estimates. Based upon the information currently available from Wright County, the City’s net tax capacity for the 2023 tax levy will increase approximately 20%. A summary of the tax levies associated with the Capital Project funds in 2023 is as follows: Tax Abatements: A proposed tax levy in the amount of $87,744 is included within the Capital Improvement Revolving fund for taxes payable 2023. This amount represents the City taxes generated within the Parkview Retail development area. The City and County entered into a Tax Abatement Agreement in 2019 to reimburse the costs of infrastructure paid by the City, with an estimated amount of $97,252 due from Wright County in 2023. Current calculations project that Wright County’s portion will be paid in full in 2026, with the City’s portion paid in full in 2032. CIP: A proposed tax levy in the amount of $1,998,346 has been included for taxes payable 2023 to provide resources for capital projects included within the City’s CIP. This amount is preliminary in nature and is subject to change throughout the budget process. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Staffing The City’s 2022 Strategic Plan includes a strategic direction of Positioning for Growth, which includes a first‐year action item to develop future staffing projections. City staff has prepared a draft staffing plan for 2023‐2027, which has been included with the packet materials, and will review this information with the City Council during this meeting. Assumptions The most significant assumption within the General fund budgeting process is those in relation to personnel. It is important for this assumption to be clearly defined at the beginning of the budgeting process. In past years, assumptions for personnel costs have included a combination of informal salary surveys obtained by City staff, inflation indices, and employment cost indices. The City’s pay plan for full‐time employees includes 23 grades, each with 9 steps. The percentage increase for each step within a pay grade is 2.75%. Employees who reach the highest step within their pay grade do not move to the next grade. There are 10 employees projected at their maximums for 2023. Previous Year’s Cost of Living Adjustments (COLA) ‐ 2022 3.00% ‐ 2021 2.25% ‐ 2020 2.75% ‐ 2019 2.50% ‐ 2018 2.50% ‐ 2017 2.00% At the first budget meeting on May 23, 2022, the City Council directed City staff to prepare wage comparisons for COLA’s ranging from 3% to 6%. City staff will review this information with the City Council during this meeting. Fund Balance Policy – Calculation of Transfer The City’s fund balance policy outlines that the ending fund balance in the General Fund should be 45% of the subsequent years budget. The policy further outlines that any balance more than the defined 45% minimum, can be transferred to a capital reserve fund at the Council’s discretion. Next Meetings August 8, 22, and 29 – At these meetings, staff and Council will be reviewing the detailed line‐item budgets for General fund revenues and department expenditures. September 12 – At this meeting, the Council will adopt the Preliminary Tax Levy for Taxes Payable 2023. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Materials Attached for Discussion 1) Capital Project Funds – Cash Flow Projections 2) Tax Abatement Levy Calculation 3) Tax Levy Summary – Payable 2023 4) 2023 – 2027 Draft Staffing Plan 5) Cost of Living Adjustment Calculation 6) Fund Balance Transfer Calculation City of OtsegoPavement Management FundCash Flow SummaryRevised: June 15, 2022 10.53% 4.76% 0.00% 0.00% ‐4.55% ‐4.76% ‐5.00% ‐5.26% ‐5.56% ‐5.88% ‐6.25% ‐6.67%Actual Forecast202120222023202420252026202720282029203020312032RevenuesProperty Taxes1,050,000$ 1,100,000$ 1,100,000$ 1,100,000$ 1,050,000$ 1,000,000$ 950,000$ 900,000$ 850,000$ 800,000$ 750,000$ 700,000$ Intergovernmental (MSA)272,126 291,478 292,935 294,400 295,872 297,351 298,838 300,332 301,834 303,343 304,860 306,384 Intergovernmental (LGA)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Franchise Fees (Residential)‐ ‐ 685,632 685,632 685,632 685,632 685,632 685,632 685,632 685,632 685,632 685,632 Franchise Fees (Commercial)‐ ‐ 101,640 101,640 101,640 101,640 101,640 101,640 101,640 101,640 101,640 101,640 Franchise Fees (New Growth)‐ ‐ 9,600 19,200 28,800 38,400 48,000 57,600 67,200 76,800 86,400 96,000 Special Assessments (Actual)58,945 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments (Levied)‐ 24,590 23,270 19,937 19,375 14,085 9,716 1,863 1,822 1,782 1,741 ‐ Special Assessments (Future)‐ ‐ 14,906 28,758 28,086 27,415 39,094 51,055 49,801 56,922 55,474 64,957 Investment Interest(46,129) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Refunds & Reimbursements102,461 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt Issuance‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total1,437,403 1,416,068 2,227,983 2,249,567 2,209,405 2,164,523 2,132,920 2,098,122 2,057,929 2,026,119 1,985,747 1,954,613 ExpensesEngineering85,348 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services4,729 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay 1,115,876 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP‐Maintenance) ‐ 984,422 908,116 669,271 955,419 791,059 1,082,809 718,976 794,978 878,948 936,009 1,285,575 Capital Outlay (CIP‐Renewal) ‐ 895,304 780,488 198,240 83,519 786,883 542,624 77,896 489,850 460,955 642,483 495,824 Capital Outlay (CIP‐MSA) ‐ ‐ ‐ 452,975 ‐ ‐ ‐ ‐ 1,660,868 ‐ ‐ ‐ Transfers Out ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total 1,205,953 1,879,726 1,688,604 1,320,486 1,038,938 1,577,942 1,625,433 796,872 2,945,696 1,339,903 1,578,492 1,781,399 Cash Balance ‐ Beginning5,304,220 5,682,063 5,218,405 5,757,784 6,686,865 7,857,333 8,443,914 8,951,401 10,252,652 9,364,885 10,051,101 10,458,356 Balance Sheet Effects146,393 Revenues1,437,403 1,416,068 2,227,983 2,249,567 2,209,405 2,164,523 2,132,920 2,098,122 2,057,929 2,026,119 1,985,747 1,954,613 Expenditures(1,205,953) (1,879,726) (1,688,604) (1,320,486) (1,038,938) (1,577,942) (1,625,433) (796,872) (2,945,696) (1,339,903) (1,578,492) (1,781,399) Cash Balance ‐ Ending5,682,063$ 5,218,405$ 5,757,784$ 6,686,865$ 7,857,333$ 8,443,914$ 8,951,401$ 10,252,652$ 9,364,885$ 10,051,101$ 10,458,356$ 10,631,570$ Cash Balance ‐ % of Next Year Capital302%309%436%644%498%519% 1123%348%699%637%587%Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds201-Pavement ManagementCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS1 City of OtsegoTrail Management FundCash Flow SummaryRevised: June 15, 2022 3.17% 7.69% 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00%4.76%Actual Forecast202120222023202420252026202720282029203020312032RevenuesProperty Taxes40,000$ 63,000$ 65,000$ 70,000$ 75,000$ 80,000$ 85,000$ 90,000$ 95,000$ 100,000$ 105,000$ 110,000$ Intergovernmental‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Investment Interest(1,975) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In300,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total338,025 63,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 110,000 ExpensesEngineering28,005 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay227,857 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP‐Maintenance)‐ 64,000 65,000 66,000 67,000 68,000 69,000 70,000 71,000 72,000 73,000 74,000 Capital Outlay (CIP‐Renewal)‐ 60,000 ‐ ‐ 100,000 ‐ ‐ 100,000 ‐ ‐ 100,000 ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total255,862 124,000 65,000 66,000 167,000 68,000 69,000 170,000 71,000 72,000 173,000 74,000 Cash Balance ‐ Beginning227,306 303,125 242,125 242,125 246,125 154,125 166,125 182,125 102,125 126,125 154,125 86,125 Balance Sheet Effects(6,344) Revenues338,025 63,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 110,000 Expenditures(255,862) (124,000) (65,000) (66,000) (167,000) (68,000) (69,000) (170,000) (71,000) (72,000) (173,000) (74,000) Cash Balance ‐ Ending303,125$ 242,125$ 242,125$ 246,125$ 154,125$ 166,125$ 182,125$ 102,125$ 126,125$ 154,125$ 86,125$ 122,125$ Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds202-Trail ManagementCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS2 City of OtsegoPark Development FundCash Flow SummaryRevised: June 15, 2022Actual Forecast2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032RevenuesPark Dedication Fees 1,205,535$ 441,694$ 288,000$ 290,880$ 293,789$ 296,727$ 299,694$ 302,691$ 305,718$ 308,775$ 311,863$ 314,981$ Intergovernmental ‐ 26,685 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments 2,410 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments (Levied) ‐ 2,410 2,410 2,410 2,410 2,410 2,410 ‐ ‐ ‐ ‐ ‐ Investment Interest (37,770) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total 1,170,175 470,789 290,410 293,290 296,199 299,137 302,104 302,691 305,718 308,775 311,863 314,981 ExpensesEngineering18,670 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services28,685 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay237,130 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ 1,352,865 213,000 317,000 60,000 ‐ ‐ ‐ ‐ ‐ 100,000 ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total284,485 1,352,865 213,000 317,000 60,000 ‐ ‐ ‐ ‐ ‐ 100,000 ‐ Cash Balance ‐ Beginning4,292,996 5,104,520 4,222,444 4,299,854 4,276,144 4,512,343 4,811,479 5,113,583 5,416,274 5,721,992 6,030,767 6,242,630 Balance Sheet Effects(74,166) Revenues1,170,175 470,789 290,410 293,290 296,199 299,137 302,104 302,691 305,718 308,775 311,863 314,981 Expenditures (284,485) (1,352,865) (213,000) (317,000) (60,000) ‐ ‐ ‐ ‐ ‐ (100,000) ‐ Cash Balance ‐ Ending 5,104,520$ 4,222,444$ 4,299,854$ 4,276,144$ 4,512,343$ 4,811,479$ 5,113,583$ 5,416,274$ 5,721,992$ 6,030,767$ 6,242,630$ 6,557,611$ MN Statute 462.358, Subd 2B(g) Cash payments received must be used only for the acquisition and development or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space based on the approved park systems plan. Cash payments must not be used for ongoing Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds203-Park DevelopmentCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS3 City of OtsegoPark Equipment FundCash Flow SummaryRevised: June 15, 2022 3.23% 9.38% 7.14% 6.67% 6.25% 5.88% 5.56% 5.26% 5.00%4.76%4.55%Actual Forecast202120222023202420252026202720282029203020312032RevenuesProperty Taxes62,000$ 64,000$ 70,000$ 75,000$ 80,000$ 85,000$ 90,000$ 95,000$ 100,000$ 105,000$ 110,000$ 115,000$ Contributions ‐ Soccer20,000 ‐ ‐ 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Investment Interest(5,350) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous46,665 13,329 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total123,315 77,329 70,000 85,000 90,000 95,000 100,000 105,000 110,000 115,000 120,000 125,000 ExpensesSupplies‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ 25,000 580,000 240,000 ‐ ‐ ‐ ‐ 102,000 ‐ ‐ 639,270 Transfers Out‐ 82,349 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total‐ 107,349 580,000 240,000 ‐ ‐ ‐ ‐ 102,000 ‐ ‐ 639,270 Cash Balance ‐ Beginning604,799 718,114 688,094 178,094 23,094 113,094 208,094 308,094 413,094 421,094 536,094 656,094 Balance Sheet Effects(10,000) Revenues123,315 77,329 70,000 85,000 90,000 95,000 100,000 105,000 110,000 115,000 120,000 125,000 Expenditures‐ (107,349) (580,000) (240,000) ‐ ‐ ‐ ‐ (102,000) ‐ ‐ (639,270) Cash Balance ‐ Ending718,114$ 688,094$ 178,094$ 23,094$ 113,094$ 208,094$ 308,094$ 413,094$ 421,094$ 536,094$ 656,094$ 141,824$ Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds205-Park EquipmentCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS4 City of OtsegoCapital Equipment Revolving FundCash Flow SummaryRevised: June 15, 2022 6.25% 5.88% 5.56% 5.26% 5.00% 4.76% 4.55% 4.35% 4.17%Actual Forecast202120222023202420252026202720282029203020312032RevenuesProperty Taxes300,000$ 320,000$ 340,000$ 360,000$ 380,000$ 400,000$ 420,000$ 440,000$ 460,000$ 480,000$ 500,000$ 520,000$ Investment Interest(2,310) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Sales of Fixed Assets‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Sales of Fixed Assets (Est.)40,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Utility Fund Contributions‐ ‐ 149,057 173,925 191,571 201,087 248,384 261,670 276,707 276,707 294,076 297,242 Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total337,690 320,000 489,057 533,925 571,571 601,087 668,384 701,670 736,707 756,707 794,076 817,242 ExpensesPersonal Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Supplies‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ General‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Buildings‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Buildings‐ ‐ 39,256 ‐ ‐ ‐ ‐ ‐ ‐ 36,868 ‐ ‐ Additions CIP ‐ Buildings‐ ‐ 39,256 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Streets300,228 48,034 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Streets‐ ‐ 387,473 269,913 550,867 448,491 343,079 199,222 112,103 22,944 777,271 362,020 Additions CIP ‐ Streets ‐ ‐ 38,000 100,000 61,000 ‐ ‐ 160,000 215,058 ‐ ‐ ‐ Capital Outlay ‐ Parks 69,716 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Parks ‐ ‐ 85,240 17,763 ‐ 73,808 48,068 255,700 147,804 26,379 103,321 ‐ Additions CIP ‐ Parks ‐ ‐ 73,427 78,000 61,000 ‐ 63,654 ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Utilities ‐ ‐ 58,000 153,798 ‐ 487,938 179,922 121,294 ‐ 200,000 55,420 241,326 Transfers Out ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total 369,944 48,034 720,652 619,474 672,867 1,010,237 634,723 736,216 474,965 286,191 936,012 603,346 Cash Balance ‐ Beginning390,669 358,415 630,381 398,786 313,237 211,941 (197,209) (163,548) (198,094) 63,648 534,164 392,228 Balance Sheet Effects‐ Revenues337,690 320,000 489,057 533,925 571,571 601,087 668,384 701,670 736,707 756,707 794,076 817,242 Expenditures(369,944) (48,034) (720,652) (619,474) (672,867) (1,010,237) (634,723) (736,216) (474,965) (286,191) (936,012) (603,346) Cash Balance ‐ Ending358,415$ 630,381$ 398,786$ 313,237$ 211,941$ (197,209)$ (163,548)$ (198,094)$ 63,648$ 534,164$ 392,228$ 606,124$ Cash Balance ‐ % of Next Year Capital746%87%64%47%21%‐31%‐22%‐42%22%57%65%Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds206-Capital EquipmentCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS5 City of OtsegoCapital Equipment Revolving FundCash Flow SummaryRevised: June 15, 2022 48.23% 11.07% 8.90% 7.74% 9.25% 4.64% 6.46% 3.84%2.07%4.69%Actual Forecast202120222023202420252026202720282029203020312032RevenuesProperty Taxes300,000$ 320,000$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Property Taxes (Building)‐ ‐ 5,996 14,028 14,028 14,028 14,028 14,028 14,028 14,028 15,798 15,798 Property Taxes (Streets)‐ ‐ 398,553 420,381 452,588 492,978 518,047 534,647 567,899 599,103 600,205 641,709 Property Taxes (Parks)‐ ‐ 75,797 90,759 103,158 112,187 115,731 127,461 139,740 146,837 148,104 153,060 Investment Interest(2,310) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Sales of Fixed Assets‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Sales of Fixed Assets (Est.)40,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Utility Fund Contributions‐ ‐ 149,057 173,925 191,571 201,087 248,384 261,670 276,707 276,707 294,076 297,242 Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total337,690 320,000 629,403 699,093 761,345 820,280 896,190 937,806 998,374 1,036,675 1,058,183 1,107,809 ExpensesCapital Outlay ‐ Building‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Buildings‐ ‐ 39,256 ‐ ‐ ‐ ‐ ‐ ‐ 36,868 ‐ ‐ Additions CIP ‐ Buildings‐ ‐ 39,256 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Streets300,228 48,034 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Streets‐ ‐ 387,473 269,913 550,867 448,491 343,079 199,222 112,103 22,944 777,271 362,020 Additions CIP ‐ Streets‐ ‐ 38,000 100,000 61,000 ‐ ‐ 160,000 215,058 ‐ ‐ ‐ Capital Outlay ‐ Parks69,716 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Parks‐ ‐ 85,240 17,763 ‐ 73,808 48,068 255,700 147,804 26,379 103,321 ‐ Additions CIP ‐ Parks‐ ‐ 73,427 78,000 61,000 ‐ 63,654 ‐ ‐ ‐ ‐ ‐ Replacement CIP ‐ Utilities‐ ‐ 58,000 153,798 ‐ 487,938 179,922 121,294 ‐ 200,000 55,420 241,326 Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total369,944 48,034 720,652 619,474 672,867 1,010,237 634,723 736,216 474,965 286,191 936,012 603,346 Cash Balance ‐ Beginning390,669 358,415 630,381 539,132 618,751 707,229 517,272 778,739 980,329 1,503,738 2,254,222 2,376,393 Balance Sheet EffectsRevenues337,690 320,000 629,403 699,093 761,345 820,280 896,190 937,806 998,374 1,036,675 1,058,183 1,107,809 Expenditures(369,944) (48,034) (720,652) (619,474) (672,867) (1,010,237) (634,723) (736,216) (474,965) (286,191) (936,012) (603,346) Cash Balance ‐ Ending358,415$ 630,381$ 539,132$ 618,751$ 707,229$ 517,272$ 778,739$ 980,329$ 1,503,738$ 2,254,222$ 2,376,393$ 2,880,856$ Cash Balance ‐ % of Next Year Capital746%87%87%92%70%81%106%206%525%241%394%Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds206-NEWCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS6 City of OtsegoFire Reserves FundCash Flow SummaryRevised: June 15, 2022Actual Forecast2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032RevenuesProperty Taxes 190,000$ 200,000$ 210,000$ 220,000$ 230,000$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Property Taxes (Debt Service) ‐ ‐ ‐ ‐ ‐ 897,994 895,448 897,401 893,135 893,120 897,110 894,338 Special Assessments 202 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Investment Interest (15,083) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 574,252 Debt Issuance ‐ ‐ ‐ ‐ 10,000,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total175,119 200,000 210,000 220,000 10,230,000 897,994 895,448 897,401 893,135 893,120 897,110 1,468,590 ExpensesFire Study9,410 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (Land)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 200,000 200,000 Capital Outlay (Equipment)‐ ‐ ‐ 260,375 2,450,000 320,000 ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (Building)‐ ‐ ‐ 550,000 9,000,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt Service‐ ‐ ‐ ‐ ‐ 757,849 849,020 846,238 847,636 843,098 842,490 845,570 Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total9,410 ‐ ‐ 810,375 11,450,000 1,077,849 849,020 846,238 847,636 843,098 1,042,490 1,045,570 Cash Balance ‐ Beginning1,791,201 1,961,368 2,161,368 2,371,368 1,780,993 560,993 381,138 427,566 478,729 524,228 574,250 428,870 Balance Sheet Effects4,458 Revenues175,119 200,000 210,000 220,000 10,230,000 897,994 895,448 897,401 893,135 893,120 897,110 1,468,590 Expenditures(9,410) ‐ ‐ (810,375) (11,450,000) (1,077,849) (849,020) (846,238) (847,636) (843,098) (1,042,490) (1,045,570) Cash Balance ‐ Ending1,961,368$ 2,161,368$ 2,371,368$ 1,780,993$ 560,993$ 381,138$ 427,566$ 478,729$ 524,228$ 574,250$ 428,870$ 851,890$ DISCLAIMER - TIMING AND COSTS OF FIRE CAPITAL PROJECTS FOR ILLUSTRATIVE PURPOSES ONLYProjection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds214-Fire ReserveCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS7 City of OtsegoMSA Construction FundCash Flow SummaryRevised: June 15, 2022Actual Forecast2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032RevenuesIntergovernmental 713,726$ 874,432$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Special Assessments ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Investment Interest ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total 713,726 874,432 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ExpensesEngineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services 1,563 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total1,563 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Beginning(321,401) (612,136) (612,136) (612,136) (612,136) (612,136) (612,136) (612,136) (612,136) (612,136) (612,136) (612,136) Balance Sheet Effects(1,002,898) (874,432) Revenues713,726 874,432 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Expenditures(1,563) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Ending(612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ (612,136)$ MSA Annual Allottment713,726$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ 874,432$ MSA Disbursements‐$ ‐$ MSA Fund Balance(2,910,929)$ (2,036,497)$ (1,162,065)$ (287,633)$ 586,799$ 1,461,231$ 2,335,663$ 3,210,095$ 4,084,527$ 4,958,959$ 5,833,391$ 6,707,823$ Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds403-MSA ConstructionCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS8 City of OtsegoNorth Mississippi WatershedCash Flow SummaryRevised: June 15, 2022Actual Forecast2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032RevenuesDevelopment Fees ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Investment Interest‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments (Actual)2,760 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments (Levied)‐ 2,760 2,760 2,760 2,760 2,760 2,760 ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total2,760 2,760 2,760 2,760 2,760 2,760 2,760 ‐ ‐ ‐ ‐ ‐ ExpensesSupplies‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Beginning(276,424) (273,664) (276,424) (273,664) (270,904) (268,144) (265,384) (262,624) (262,624) (262,624) (262,624) (262,624) Balance Sheet Effects‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Revenues2,760 2,760 2,760 2,760 2,760 2,760 2,760 ‐ ‐ ‐ ‐ ‐ Expenditures‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Ending(273,664)$ (270,904)$ (273,664)$ (270,904)$ (268,144)$ (265,384)$ (262,624)$ (262,624)$ (262,624)$ (262,624)$ (262,624)$ (262,624)$ ProjectedY:\Budget\2023\Cash Flows\Capital Funds405-NoMissWSCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS9 City of OtsegoLefebvre Creek WatershedCash Flow SummaryRevised: June 15, 2022Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast20122013201420152016201720182019202020212022RevenuesDevelopment Fees‐$ ‐$ 111,883$ ‐$ 27,468$ 133,587$ 127,999$ ‐$ ‐$ 88,577$ ‐$ Investment Interest‐ ‐ (1,447) ‐ 87 903 3,409 10,541 9,552 (2,956) ‐ Miscellaneous‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total‐ ‐ 110,436 ‐ 27,555 134,490 131,408 10,541 9,552 85,621 ‐ ExpensesSupplies‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Beginning(126,813) (126,813) (126,813) (16,377) (16,377) 11,178 145,668 277,076 287,617 297,169 382,790 Balance Sheet Effects‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Revenues‐ ‐ 110,436 ‐ 27,555 134,490 131,408 10,541 9,552 85,621 ‐ Expenditures‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Ending(126,813)$ (126,813)$ (16,377)$ (16,377)$ 11,178$ 145,668$ 277,076$ 287,617$ 297,169$ 382,790$ 382,790$ Y:\Budget\2023\Cash Flows\Capital Funds406-LefebvreCreekWSCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS10 City of OtsegoOtsego Creek WatershedCash Flow SummaryRevised: June 15, 2022Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast20122013201420152016201720182019202020212022RevenuesDevelopment Fees‐$ ‐$ 79,375$ 29,766$ 182,164$ 85,820$ 141,596$ 180,740$ 345,704$ 251,124$ 115,366$ Investment Interest8,060 (2,582) 9,898 ‐ 6,757 9,513 16,912 40,872 37,965 (12,056) ‐ Miscellaneous‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total8,060 (2,582) 89,273 29,766 188,921 95,333 158,508 221,612 383,669 239,068 115,366 ExpensesSupplies3,396 ‐ 20 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services17,432 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 563 ‐ Capital Outlay‐ ‐ ‐ ‐ ‐ ‐ 29,356 ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers Out‐ ‐ 60,900 ‐ ‐ ‐ 241,294 ‐ ‐ ‐ ‐ Total20,828 ‐ 60,920 ‐ ‐ ‐ 270,650 ‐ ‐ 563 ‐ Cash Balance ‐ Beginning679,526 666,758 661,346 692,529 722,295 911,216 1,006,549 894,407 1,116,019 1,499,688 1,738,756 Balance Sheet Effects‐ (2,830) 2,830 ‐ ‐ ‐ ‐ ‐ ‐ 563 ‐ Revenues8,060 (2,582) 89,273 29,766 188,921 95,333 158,508 221,612 383,669 239,068 115,366 Expenditures(20,828) ‐ (60,920) ‐ ‐ ‐ (270,650) ‐ ‐ (563) ‐ Cash Balance ‐ Ending666,758$ 661,346$ 692,529$ 722,295$ 911,216$ 1,006,549$ 894,407$ 1,116,019$ 1,499,688$ 1,738,756$ 1,854,122$ Y:\Budget\2023\Cash Flows\Capital Funds408-OtsegoCreekWSCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS11 City of OtsegoCrow River WatershedCash Flow SummaryRevised: June 15, 2022Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast20122013201420152016201720182019202020212022RevenuesDevelopment Fees‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Investment Interest‐ ‐ (177) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total‐ ‐ (177) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ExpensesSupplies‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Beginning(11,814) (11,814) (11,814) (11,991) (11,991) (11,991) (11,991) (11,991) (11,991) (11,991) (11,991) Balance Sheet Effects‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Revenues‐ ‐ (177) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Expenditures‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cash Balance ‐ Ending(11,814)$ (11,814)$ (11,991)$ (11,991)$ (11,991)$ (11,991)$ (11,991)$ (11,991)$ (11,991)$ (11,991)$ (11,991)$ Y:\Budget\2023\Cash Flows\Capital Funds410-CrowRiverWSCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS12 City of OtsegoCapital Improvements FundCash Flow SummaryRevised: June 15, 2022Actual Forecast2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032RevenuesProperty Taxes 661,000$ 1,175,590$ 1,264,315$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Intergovernmental ‐ ‐ ‐ 297,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments 27,142 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Special Assessments (Levied) ‐ 27,557 26,791 26,026 25,260 24,495 6,945 5,076 4,915 ‐ ‐ ‐ Investment Interest (15,301) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Tax Abatement ‐ City ‐ 40,228 87,744 87,744 87,744 87,744 87,744 87,744 87,744 87,744 87,744 70,076 Tax Abatement ‐ County ‐ 35,804 97,252 97,252 97,252 72,440 ‐ ‐ ‐ ‐ ‐ ‐ Sales of Capital Assets ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In2,134,846 1,266,290 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total2,807,687 2,545,469 1,476,102 508,022 210,256 184,679 94,689 92,820 92,659 87,744 87,744 70,076 ExpensesCapital Outlay ‐ General‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Public Safety‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Public Works199,995 150,236 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Parks‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ Econ Dev‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (Streets CIP)‐ 330,000 50,000 ‐ ‐ 38,000 ‐ 40,000 ‐ ‐ ‐ ‐ Capital Outlay (County CIP)‐ 341,861 ‐ 975,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (Property CIP)‐ 50,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Development Incentives‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total199,995 872,097 50,000 975,000 ‐ 38,000 ‐ 40,000 ‐ ‐ ‐ ‐ Cash Balance ‐ Beginning1,609,498 4,128,780 5,802,152 7,228,254 6,761,276 6,971,532 7,118,211 7,212,900 7,265,720 7,358,379 7,446,123 7,533,867 Balance Sheet Effects(88,410) Revenues2,807,687 2,545,469 1,476,102 508,022 210,256 184,679 94,689 92,820 92,659 87,744 87,744 70,076 Expenditures(199,995) (872,097) (50,000) (975,000) ‐ (38,000) ‐ (40,000) ‐ ‐ ‐ ‐ Cash Balance ‐ Ending4,128,780$ 5,802,152$ 7,228,254$ 6,761,276$ 6,971,532$ 7,118,211$ 7,212,900$ 7,265,720$ 7,358,379$ 7,446,123$ 7,533,867$ 7,603,943$ Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds414-Capital Imp.CAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS13 City of OtsegoCity Buildings & Property MaintenanceCash Flow SummaryRevised: June 15, 2022 16.67% 14.29% 12.50% 11.11% 10.00% 9.09% 8.33% 7.69%7.14%6.67%Actual Forecast202120222023202420252026202720282029203020312032RevenuesProperty Taxes25,000$ 30,000$ 35,000$ 40,000$ 45,000$ 50,000$ 55,000$ 60,000$ 65,000$ 70,000$ 75,000$ 80,000$ Investment Interest(654) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt Issuance‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers In‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total24,346 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 ExpensesSupplies‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other Charges & Services8,500 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (City Hall)8,989 28,750 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (Prairie Center)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capital Outlay (CIP)‐ 54,151 22,000 10,000 10,000 ‐ ‐ ‐ ‐ 70,000 ‐ ‐ Capital Outlay (IT CIP)‐ ‐ ‐ ‐ 60,000 ‐ 50,000 ‐ 150,000 70,000 ‐ ‐ Transfers Out‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total17,489 82,901 22,000 10,000 70,000 ‐ 50,000 ‐ 150,000 140,000 ‐ ‐ Cash Balance ‐ Beginning84,135 90,992 38,091 51,091 81,091 56,091 106,091 111,091 171,091 86,091 16,091 91,091 Balance Sheet EffectsRevenues24,346 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 Expenditures(17,489) (82,901) (22,000) (10,000) (70,000) ‐ (50,000) ‐ (150,000) (140,000) ‐ ‐ Cash Balance ‐ Ending90,992$ 38,091$ 51,091$ 81,091$ 56,091$ 106,091$ 111,091$ 171,091$ 86,091$ 16,091$ 91,091$ 171,091$ Projection ‐ Capital Improvement PlanY:\Budget\2023\Cash Flows\Capital Funds439-Buildings & PropertyCAPITAL PROJECT FUNDS - CASH FLOW PROJECTIONS14 City of Otsego Property Tax Abatement Schedule Parview Retail Revised: June 6, 2022 2022 2023 2024 2025 2026 2027 Estimated for Levy Coborn's 34,921 36,229 Parkview Grand 5,307 49,092 Heartland Dental & Dunkin' ‐ 2,423 Total Levy 40,228 87,744 ‐ ‐ ‐ ‐ Actual City Taxes Coborn's 34,980.96 Parkview Grand 5,315.78 Heartland Dental & Dunkin'‐ Total City Tax Abatement 40,296.74 ‐ ‐ ‐ ‐ ‐ Actual County Taxes Coborn's 44,303.38 Parkview Grand 6,732.30 Subtotal County Taxes 51,035.68 Less: 10% County Retained (5,103.57) Total County Tax Abatement 45,932.11 ‐ ‐ ‐ ‐ ‐ Estimated for Budget 45,735 97,252 Difference 197 Calculation of Estimated Property Taxes Coborn's Taxable Market Value (Assessment from County Website)5,100,600 5,281,200 Tax Capacity (Commercial)101,262 104,874 City Tax Rate (Update for TNT Rates)34.486 34.545 County Tax Rate (Update for TNT Rates)43.564 43.751 Estimated City Taxes = Abatement 34,921 36,229 Estimated County Taxes 44,114 45,883 90% Per Agreement = Abatement 39,702 41,295 Parkview Grand Taxable Market Value (Assessment from County Website) 1,231,000 11,368,800 Tax Capacity (Apartments) 15,388 142,110 City Tax Rate (Update for TNT Rates) 34.486 34.545 County Tax Rate (Update for TNT Rates) 43.564 43.751 Estimated City Taxes = Abatement 5,307 49,092 Estimated County Taxes 6,703 62,175 90% Per Agreement = Abatement 6,033 55,957 Heartland Dentail & Dunkin' Taxable Market Value (Assessment from County Website) 388,200 Tax Capacity (Commercial) 7,014 City Tax Rate (Update for TNT Rates) 34.545 Estimated City Taxes = Abatement 2,423 Amortization of Tax Abatement Improvement Project Beginning Ending Activity Code #6202001 (as of 6/6/2022)949,187 Balance City County Balance 2022 949,187 (40,228) (45,932) 863,027 2023 863,027 (87,744) 775,283 2024 775,283 775,283 2025 775,283 775,283 2026 775,283 775,283 2027 775,283 775,283 2028 775,283 775,283 2029 775,283 775,283 2030 775,283 775,283 2031 775,283 775,283 2032 775,283 775,283 TAX ABATEMENT LEVY CALCULATION City of Otsego Property Tax Levy Calculations Payable 2023 Revised: June 24, 2022 $% $% 2021 2022 2023 Change Change 2023 Change Change General Revenues 4,671,000 5,009,000 5,259,450 250,450 5.00% 5,259,450 250,450 5.00% Tax Abatements 45,874 40,228 87,744 47,516 118.12% 87,744 47,516 118.12% Debt Service Series 2010B 460,000 ‐ ‐ ‐ ‐ ‐ Series 2018A 94,551 97,187 94,415 (2,772) 94,415 (2,772) Series 2020A 195,000 450,000 450,000 ‐ 450,000 ‐ **NEW** ‐ ‐ ‐ ‐ ‐ ‐ Sub‐total 749,551 547,187 544,415 (2,772) ‐0.51% 544,415 (2,772) ‐0.51% Capital Reserves Pavement Management 1,050,000 1,100,000 1,100,000 ‐ 1,100,000 ‐ Trails Management 40,000 63,000 65,000 2,000 65,000 2,000 Parks Equipment 62,000 64,000 70,000 6,000 70,000 6,000 Capital Equipment Revolving 300,000 320,000 480,346 160,346 480,346 160,346 Fire Reserve 190,000 200,000 210,000 10,000 210,000 10,000 Storm Water 34,000 36,000 38,000 2,000 38,000 2,000 Capital Improvements 661,000 1,175,590 ‐ (1,175,590) ‐ (1,175,590) City Buildings & Property 25,000 30,000 35,000 5,000 35,000 5,000 Sub‐total 2,362,000 2,988,590 1,998,346 (990,244) ‐33.13% 1,998,346 (990,244) ‐33.13% Tax Rate Management (Flexibility)2,480,371 1,264,315 Grand Total 7,828,425 8,585,005 10,370,326 1,785,321 20.80% 9,154,270 569,265 6.63% Growth (%)8.82% 9.66% Tax Capacity 22,876,221 25,254,743 30,504,905 30,504,905 Growth (%)10.29% 10.40%20.79%20.79% Net Tax Capacity 22,591,258 24,852,871 30,019,489 30,019,489 Growth (%)10.22% 10.01%20.79%20.79% Tax Rate 34.653 34.545 34.545 30.494 Population 18,130 19,966 21,289 21,289 Tax Levy Per Capita 432 430 487 430 Taxing 2021 2022 2023 2023 Authority Final Tax Rate Final Tax Rate Estimate Change Estimate Change City of Otsego 34.653 34.545 34.545 ‐0.31%30.494 ‐11.73% Wright County 43.719 43.751 43.751 0.07%43.751 0.00% School District 31.717 30.889 30.889 ‐2.61%30.889 0.00% School District ‐ RMV 30.598 28.698 28.698 ‐6.21%28.698 0.00% Description 2021 2022 2023 Change 2023 Change Median Appraised Value 258,455 290,081 328,710 13.32%328,710 13.32% Less: MV Exclusion (13,979) (11,133) (7,656) (7,656) Taxable Market Value 244,476 278,948 321,054 15.09%321,054 15.09% Tax Capacity 2,445 2,789 3,211 3,211 2021 2022 2023 2023 Taxing Estimated Estimated Estimated Estimated Authority Tax Tax Tax Change Tax Change City of Otsego 847 964 1,109 15.04%979 1.56% Wright County 1,069 1,220 1,405 15.16%1,405 15.16% School District 775 862 992 15.08%992 15.08% School District ‐ RMV 791 832 943 13.34%943 13.34% Total 3,482 3,878 4,449 14.72%4,319 11.37% Annual Increase 571 441 Illustration #1 Illustration #2 Levy Description Y:\Budget\2023\Property Taxes\Tax Levy Calculations (2023)6‐27 TAX LEVY SUMMARY - PAYABLE 2023 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director Sabrina Hille, Assistant City Administrator & Human Resources DATE: June 27, 2022 SUBJECT: 2023‐2027 Staffing Plan The City’s 2022 Strategic Plan includes a strategic direction of Positioning for Growth, which includes a first‐ year action item to develop future staffing projections. In preparation of the 2023 budgeting discussions, City staff has developed a draft five‐year staffing plan. This outlook will be a benefit to the City as it will provide: ‐ An opportunity for the City Council to question and comment upon future staffing needs. ‐ A planning document that will aid in budgeting. ‐ A document that looks beyond the current year. ‐ A familiar document that will be reviewed and updated annually. Population and Population per Staff Member 2023-2027 DRAFT STAFFING PLAN 1 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Administration Departments 2023 Requests The Administrative Intern position was added for the 2022 budget year. City staff would recommend that this position become a temporary position on an annual basis. 2024 – 2027 Forecasted Positions ‐ Emergency Manager; 2024 ‐ Communications; 2024 ‐ Information Technology; 2024 ‐ Building Permit Technician; 2024 ‐ Finance Clerk; Part‐Time in 2026 and Full‐Time in 2027 ‐ Payroll Clerk; 2027 2023-2027 DRAFT STAFFING PLAN 2 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Public Works Department 2023 Requests There are no recommendations for changes. 2024 – 2027 Forecasted Positions ‐ Building Maintenance; 2024 ‐ Mechanic; 2024 ‐ Administrative Assistant; Part‐Time in 2025 and Full‐Time in 2027 ‐ Street Maintenance I; 2026 2023-2027 DRAFT STAFFING PLAN 3 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Parks and Recreation Department 2023 Requests Parks and Recreation Department Reorganization The Parks and Recreation Department is currently in a transition period brought on by continued growth in the City’s parks and trails infrastructure along with continued growth in recreational programming and community events. In addition to the growth impacts, the Parks and Recreation Director position is currently being filled with an interim designation. A transition period is a good time to explore organizational structure and to build for future departmental success. Through many staff discussions, a few changes are being proposed: ‐ Lead Parks Maintenance: Recommendation for position title to change to Parks Foreperson, which would be consistent with Public Works and Utility departments. The job description would be reviewed with comparable positions, and if changes were to occur, the position would be rescored. ‐ Parks Maintenance I: Recommendation for the job description to include certain criteria to be able to advance staff from this position to the Parks Maintenance II position. This would be consistent with advancement opportunities in the Public Works and Utility departments. The job description would be reviewed with comparable positions, and if changes were to occur, the position would be rescored. 2023-2027 DRAFT STAFFING PLAN 4 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 ‐ Parks Maintenance II: Recommendation for the job description to be updated to include duties and responsibilities from the Operations Coordinator position. The job description would be reviewed with comparable positions, and if changes were to occur, the position would be rescored. ‐ Operations Coordinator: Recommendation for this job description to be abolished. Parks Maintenance I Addition The Parks and Recreation Department is requesting a staff addition in 2023. Since the last staffing addition, the department has added two parks (approximately 65 acres), 8 roundabouts, and over 10 miles of trails. With our aging infrastructure, staff is spending considerably more time providing reactive maintenance to things like irrigation, playgrounds, and natural areas. This impacts the amount of time that proactive maintenance can occur. Proactive maintenance refers to things like playground inspections, irrigation proficiency, tree trimming, natural area maintenance, and trail maintenance. The proposed position would allow the Parks and Recreation Department to continue to provide quality service through an increase in proactive maintenance. Greater support for programming and special events, and continued proficiency in snow removal of trails, cul‐de‐sacs, and ice rinks. Through proactive maintenance, staff would be able to do more training in best practices, which would increase efficiencies with things like irrigation management, natural restoration, turf maintenance, and forestry. Which will allow staff to identify problem areas before they occur which increases safety and lessens potential user complaints. Estimated Cost: ~ $65,000 (Pending pay grade and benefit renewals) Budget Impact: ~ $50,000 (First year less than 12 months) Proposed Timing: April 2023 2024 – 2027 Forecasted Positions ‐ Recreation Programmer; 2025 ‐ Parks Maintenance I; 2027 2023-2027 DRAFT STAFFING PLAN 5 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Utilities Department 2023 Requests Utility Operator Addition The Utility Department is requesting an Operator addition within 2023 supporting operations and maintenance of the City’s water and wastewater systems. The addition aligns with capacity expansion of the West Wastewater Treatment Facility, community growth and customer service needs. The staffing addition allows for Facility construction collaboration paralleling onboarding as team specialization progresses, focusing divisionally within Wastewater Treatment, Water and Collection and Distribution Services. Estimated Cost: ~ $65,000 (Pending pay grade and benefit renewals) Budget Impact: ~ $45,000 (First year less than 12 months) Proposed Timing: May 2023 2024 – 2027 Forecasted Positions ‐ Utility Operators (2); 2024 ‐ Administrative Assistant; 2025 ‐ Utility Foreperson; 2026 ‐ Utility Operator; 2027 2023-2027 DRAFT STAFFING PLAN 6 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 2023 Proposed Organizational Chart 2023‐2027 Outlook 2023 2024 2025 2026 2027 Additions Administration ‐ 1.00 ‐ ‐ ‐ Emergency Management ‐ 1.00 ‐ ‐ ‐ Finance ‐ ‐ ‐ 0.50 0.50 Information Technology ‐ 1.00 ‐ ‐ ‐ Human Resources ‐ ‐ ‐ ‐ 1.00 Building Safety ‐ 1.00 ‐ ‐ ‐ City Buildings ‐ 1.00 ‐ ‐ ‐ Streets & Fleet ‐ 1.00 0.50 1.00 0.50 Parks & Recreation 1.00 ‐ 1.00 ‐ 1.00 Utilities 1.00 2.00 1.00 1.00 1.00 Total of Additions 2.00 8.00 2.50 2.50 4.00 Beginning Staff 32.00 34.00 42.00 44.50 47.00 Ending Staff 34.00 42.00 44.50 47.00 51.00 2023-2027 DRAFT STAFFING PLAN 7 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 2024 ‐ 2027 Forecasted Positions 2024 (+8) ‐ Emergency Manager ‐ Communications ‐ Information Technology ‐ Building Permit Technician ‐ Building Maintenance ‐ Mechanic ‐ Utility Operator ‐ Utility Operator 2025 (+2.5) ‐ Public Works Administrative Assistant (PT) ‐ Recreation Programmer ‐ Public Utilities Administrative Assistant 2026 (+2.5) ‐ Finance Clerk (PT) ‐ Street Maintenance ‐ Utility Foreperson 2027 (+4) ‐ Finance Clerk (PT to FT) ‐ Payroll Clerk ‐ Public Works Administrative Assistant (PT to FT) ‐ Parks Maintenance ‐ Utility Operator Disclaimer It should be noted that inclusion of a staff addition within this outlook 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 addition. Each individual addition is planned, researched, and brought back to the City Council for final approval when the respective staffing addition is ready to move forward. 2023-2027 DRAFT STAFFING PLAN 8 Taxes Utilities Wages & Running Wages & Running Percentage Percentage Payroll Taxes Total Increase Payroll Taxes Total Increase over 0% COLA over 2022 0.00%2,129,527 715,324 4.87% 0.50%2,139,306 9,779 718,684 3,360 0.46% 5.35% 1.00%2,149,084 19,557 722,045 6,721 0.92% 5.84% 1.50%2,158,862 29,335 725,406 10,082 1.39% 6.32% 2.00%2,168,641 39,114 728,767 13,443 1.85% 6.81% 2.50%2,178,419 48,892 732,127 16,803 2.31% 7.29% 3.00%2,188,198 58,671 735,488 20,164 2.77% 7.77% 3.50%2,197,976 68,449 738,849 23,525 3.23% 8.26% 4.00%2,207,754 78,227 742,209 26,885 3.69% 8.74% 4.50%2,217,533 88,006 745,570 30,246 4.16% 9.23% 5.00%2,227,311 97,784 748,931 33,607 4.62% 9.71% 5.50%2,237,090 107,563 752,291 36,967 5.08% 10.20% 6.00%2,246,868 117,341 755,652 40,328 5.54% 10.68% 2022 2,047,057 665,713 COLA CALCULATION City of OtsegoFund Balance Policy General Fund Transfer2022Calculation Comments2022 General Fund Budget 7,347,416 Resolution 2021‐100Minimum Fund Balance 3,306,337 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.2021 Ending Fund Balance 5,199,901 Per Audited Financial Statements(245,758) Less: Fund Balance from Insurance Reserve Fund (#204) ‐ Grouped with General for Financial Reporting(27,043) Less: Fund Balance from Educational Programming Fund (#215) ‐ Grouped with General for Financial Reporting(152,273) Less: Nonspendable Fund Balance ‐ Financial Reporting Requirement ‐ Funds actually have alredy been expended.(202,200) Less: Nonspendable Fund Balance ‐ Financial Reporting Requirement ‐ Future funds from land for resale proceeds.4,572,627 Fund Balance Available (Unassigned)Transfer 1,266,290 DRAFT ‐ Presented to City Council on Month XX, 2022Y:\Budget\2023\Calculation of Fund Balance Policy Transfers2022FUND BALANCE POLICY TRANSFER