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Item 2. 2023 Budget, Tax Levy and Capital ImprovementCity of Otsego General Fund Budget ‐ 2023 Budget Changes Tracking Total Expenditures ‐ Draft Budget Binder (August 5) 7,871,939$        Remove Community Survey City Council (20,000)               Remove/Modify Advisory Commissioner Training Public Safety Commission (1,500)                 Heritage Preservation Commission (1,000)                 Parks and Recreation Commission (1,500)                 Planning Commission (1,500)                 Increase Contracted Hours from 48 to 50 Police Services 63,328                Total Expenditures ‐ Preliminary Levy (September 26) 7,909,767           Y:\Budget\2023\General Fund\2.0 - 2023 PRELIMINARY BUDGETS INPUT Item 2. City of OtsegoGeneral Fund Budget ‐ 2023Requested BudgetRevenue & Expenditure SummaryRequested PreliminaryActual Actual Year‐to‐Date Budget Budget Budget2020 2021 2022 2022 2023 2023 $ Change % ChangeRevenuesTaxes 4,497,724$        4,592,524$        2,797,396$        5,000,506$         5,261,395$        5,299,223$        298,717$           5.97%Cable Franchise Fees 132,137             129,467            100,204            129,000             131,000            131,000            2,000                 1.55%Licenses & Permits 2,532,789          2,529,588         1,801,424         1,510,639          1,695,623         1,695,623         184,984            12.25%Intergovernmental 1,396,214          88,037              998,355            87,500               85,300              85,300              (2,200)               ‐2.51%Charges for Services 255,598             424,487            397,027            238,871             270,321            270,321            31,450              13.17%Special Assessments 5,434                  5,732                 1,235                 3,400                  3,400                 3,400                 ‐                         0.00%Fines & Forfeitures 19,959               27,461              18,965              24,000               24,000              24,000              ‐                         0.00%Investment Interest 170,477             (46,484)             (1,927,378)       60,000               61,000              61,000              1,000                 1.67%Miscellaneous 23,984               18,651              11,989              ‐                         7,500                 7,500                 7,500                 #DIV/0!Interfund Transfers 201,796             243,100            293,500            293,500             332,400            332,400            38,900              13.25%Subtotal9,236,110          8,012,563         4,492,716         7,347,416          7,871,939         7,909,767         562,351            7.65%ExpendituresGeneral Government 1,419,636          1,358,501         1,066,139         1,763,193          1,813,494         1,793,494         30,301              1.72%Public Safety 2,667,435          2,879,409         2,064,052         3,015,037          3,230,910         3,292,738         277,701            9.21%Public Works 1,204,666          1,287,787         1,081,038         1,551,450          1,747,465         1,747,465         196,015            12.63%Culture & Recreation 697,455             778,621            564,071            855,826             965,210            962,710            106,884            12.49%Economic Development 665,798             91,248              55,502              161,910             114,860            113,360            (48,550)             ‐29.99%Interfund Transfers 932,244             2,434,846         ‐                         ‐                         ‐                         ‐                         ‐                         #DIV/0!Subtotal7,587,233          8,830,410         4,830,802         7,347,416          7,871,939         7,909,767         562,351            7.65%Net Change in Fund Balance1,648,877$        (817,848)$          (338,086)$          ‐$                        (0)$                      0$                      Description City of OtsegoProperty Tax Levy CalculationsPayable 2023Revised: September 9, 2022$% $% $% $%2021 2022 2023 Change Change 2023 Change Change 2023 Change Change 2023 Change ChangeGeneral Revenues 4,671,000        5,009,000        5,245,000        236,000          4.71% 5,309,000      300,000          5.99% 5,309,000      300,000          5.99% 5,309,000      300,000          5.99%Tax Abatements 45,874              40,228              87,744              47,516            118.12% 87,744            47,516            118.12% 87,744            47,516            118.12% 87,744            47,516            118.12%Debt ServiceSeries 2010B 460,000            ‐                         ‐                        ‐                       ‐                       ‐                       ‐                       ‐                       ‐                       ‐                      Series 2018A 94,551              97,187              94,415              (2,772)             94,415            (2,772)             94,415            (2,772)             94,415            (2,772)            Series 2020A 195,000            450,000            450,000            ‐                       450,000          ‐                       450,000          ‐                       450,000          ‐                      Sub‐total 749,551            547,187            544,415            (2,772)             ‐0.51% 544,415          (2,772)             ‐0.51% 544,415          (2,772)             ‐0.51% 544,415          (2,772)             ‐0.51%Capital ReservesPavement Management 1,050,000        1,100,000        1,100,000        ‐                       1,100,000      ‐                       1,100,000      ‐                       1,100,000      ‐                      Trails Management 40,000              63,000              65,000              2,000              65,000            2,000              65,000            2,000              65,000            2,000             Parks Equipment 62,000              64,000              70,000              6,000              70,000            6,000              70,000            6,000              70,000            6,000             Capital Equipment Revolving 300,000            320,000            480,346            160,346          480,346          160,346          480,346          160,346          480,346          160,346         Fire Reserve 190,000            200,000            210,000            10,000            210,000          10,000            210,000          10,000            210,000          10,000           Storm Water 34,000              36,000              38,000              2,000              38,000            2,000              38,000            2,000              38,000            2,000             Capital Improvements 661,000            1,175,590        2,858,373        1,682,783      1,214,365      38,775            1,320,518      144,928          1,390,518      214,928         City Buildings & Property 25,000              30,000              35,000              5,000              35,000            5,000              35,000            5,000              35,000            5,000             Sub‐total 2,362,000        2,988,590        4,856,719        1,868,129      62.51% 3,212,711      224,121          7.50% 3,318,864      330,274          11.05% 3,388,864      400,274          13.39%Grand Total 7,828,425        8,585,005        10,733,878      2,148,873      25.03% 9,153,870      568,865          6.63% 9,260,023      675,018          7.86% 9,330,023      745,018          8.68%Growth (%) 8.82% 9.66%Tax Capacity 22,876,221      25,254,743      31,574,313      31,574,313    31,574,313    31,574,313   Growth (%) 10.29% 10.40% 25.02% 25.02% 25.02% 25.02%Net Tax Capacity 22,591,258      24,852,871      31,071,879      31,071,879    31,071,879    31,071,879   Growth (%) 10.22% 10.01% 25.02% 25.02% 25.02% 25.02%Tax Rate 34.653              34.545              34.545              29.460            29.802            30.027           Population 18,130              19,966              21,289              21,289            21,289            21,289           Tax Levy Per Capita 432                   430                   504                   430                 435                 438                Taxing 2021 2022 2023 2023 2023 2023Authority Final Tax Rate Final Tax Rate Estimate Change Estimate Change Estimate Change Estimate ChangeCity of Otsego 34.653              34.545              34.545              0.00% 29.460            ‐14.72% 29.802            ‐13.73% 30.027            ‐13.08%Wright County 43.719              43.751              37.700              ‐13.83% 37.700            ‐13.83% 37.700            ‐13.83% 37.700            ‐13.83%School District 31.717              30.889              30.889              0.00% 30.889            0.00% 30.889            0.00% 30.889            0.00%School District ‐ RMV 30.598              28.698              28.698              0.00% 28.698            0.00% 28.698            0.00% 28.698            0.00%Description 2021 2022 2023 Change 2023 Change 2023 Change 2023 ChangeMedian Appraised Value 258,455            290,081            328,710            13.32% 328,710          13.32% 328,710          13.32% 328,710          13.32%Less: MV Exclusion (13,979)            (11,133)            (7,656)               (7,656)             (7,656)             (7,656)            Taxable Market Value 244,476            278,948            321,054            15.09% 321,054          15.09% 321,054          15.09% 321,054          15.09%Tax Capacity 2,445                2,789                3,211                3,211              3,211              3,211             2021 2022 2023 2023 2023 2023Taxing Estimated Estimated Estimated Estimated Estimated EstimatedAuthority Tax Tax Tax Change Tax Change Tax Change Tax ChangeCity of Otsego 847                   964                   1,109                15.04% 946                 ‐1.87% 957                 ‐0.73% 964                 0.00%Wright County 1,069                1,220                1,210                ‐0.82% 1,210              ‐0.82% 1,210              ‐0.82% 1,210              ‐0.82%School District 775                   862                   992                   15.08% 992                 15.08% 992                 15.08% 992                 15.08%School District ‐ RMV 791                   832                   943                   13.34% 943                 13.34% 943                 13.34% 943                 13.34%Total 3,482                3,878                4,254                9.70% 4,091              5.49% 4,102              5.78% 4,109              5.96%Annual Increase 376                   213                 224                 231                Maintain 2022 Tax Rate Maintain 2022 Taxes Per CapitaLevy DescriptionReflect New Construction Maintain 2022 City TaxesY:\Budget\2023\Property Taxes\Tax Levy Calculations (2023)9‐12 City of OtsegoProperty Tax Levy CalculationsFuture Tax LeviesRevised: September 9, 2022Preliminary2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032General Revenues 5,009,000             5,309,000             5,574,450           5,853,173           6,145,832           6,453,124           6,775,780           7,114,569           7,470,297           7,843,812           8,236,003           Tax AbatementsGateway North ‐                             ‐                             ‐                           ‐                           ‐                           ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           Parkview Retail 40,228                  87,744                  87,744                87,744                87,744                87,744                 87,744                87,744                87,744                87,744                70,076                40,228                  87,744                  87,744                87,744                87,744                87,744                 87,744                87,744                87,744                87,744                70,076                Debt ServiceSeries 2010B ‐                             ‐                             ‐                           ‐                           ‐                           ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           Series 2018A97,187                  94,415                  102,144              104,308              106,313              113,412               114,946              9,232                   12,592                10,544                13,662                Series 2020A450,000                450,000                425,000              365,000              ‐                           ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           City Campus ‐ Phase 1 ‐                             ‐                             1,202,076           1,202,076           1,202,076           1,202,076           1,202,076           1,202,076           1,202,076           1,202,076           1,202,076           City Campus ‐ Phase 2 ‐                             ‐                             ‐                           ‐                           ‐                           1,612,500           1,612,500           1,612,500           1,612,500           1,612,500           1,612,500           City Campus ‐ Phase 3 ‐                             ‐                             ‐                           ‐                           ‐                           ‐                            ‐                           ‐                           ‐                           631,084              631,084              Fire Station ‐                             ‐                             ‐                           ‐                           897,994              895,448               897,401              893,135              893,120              897,110              894,338              Sub‐total 547,187                544,415                1,729,220           1,671,384           2,206,383           3,823,436           3,826,923           3,716,943           3,720,288           4,353,314           4,353,660           Capital ReservesPavement Management 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              Trails Management 63,000                  65,000                  70,000                75,000                80,000                85,000                 90,000                95,000                100,000              105,000              110,000              Parks Equipment 64,000                  70,000                  75,000                80,000                85,000                90,000                 95,000                100,000              105,000              110,000              115,000              Capital Equipment Revolving 320,000                480,346                525,168              569,774              619,193              647,806               676,136              721,667              759,968              764,107              810,567              Fire Reserve 200,000                210,000                220,000              230,000              240,000              250,000               260,000              270,000              280,000              290,000              300,000              Storm Water 36,000                  38,000                  40,000                42,000                44,000                46,000                 48,000                50,000                52,000                54,000                56,000                Capital Improvements 1,175,590             1,390,518             ‐                           ‐                           ‐                           ‐                            ‐                           ‐                           ‐                           ‐                           ‐                           City Buildings & Property 30,000                  35,000                  40,000                45,000                50,000                55,000                 60,000                65,000                70,000                75,000                80,000                Sub‐total 2,988,590             3,388,864             2,070,168           2,091,774           2,118,193           2,123,806           2,129,136           2,151,667           2,166,968           2,148,107           2,171,567           Grand Total 8,585,005             9,330,023             9,461,582           9,704,075           10,558,152         12,488,110         12,819,583         13,070,923         13,445,297         14,432,977         14,831,306         Net Tax Capacity 24,852,871           31,071,879           32,314,754         33,607,344         34,951,638         36,349,704         37,803,692         39,315,839         40,888,473         42,524,012         44,224,972         Growth (%) 10.01% 25.02% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%Tax Rate 34.545                  30.027                  29.279                28.875                30.208                34.355                 33.911                33.246                32.883                33.941                33.536                Increase/(Decrease) to Maintain Tax Rate 1,403,855            241,642              135,970             (465,914)             (1,507,632)        168,051              261,443              148,463             (449,868)            178,990              Levy DescriptionProjectionsY:\Budget\2023\Property Taxes\Tax Levy Calculations (2023)FUTURE LEVIES