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07-30-07 WSMEMO Date: July 26, 2007 To: Mayor & Council From: City Administrator Mike Robertson Re: 2008 Budget Workshop As part of our first 2008 budget workshop I thought I would lay out a rough schedule for future work shops. For the first workshop on Monday, July 30 we will review the 2006 budget based on the first six months results, and review the proposed 2008 budgets starting with Public Works and Building Safety. All department heads will be present at the meeting. For the second workshop on Wednesday, August 15 we will review proposed 2008 budgets of all of the remaining departments not covered at the July 30 meeting. All department heads will be present. For the third workshop on Wednesday, September 5 we should have received our tax capacity information from Wright County and can set our preliminary tax levy. Of the department heads only Gary and I will be at this meeting. Gary will review the Health Insurance information with the Council. After that Gary will leave and I will review my salary study and the department heads salary recommendations with the Council. GENERAL INFORMATION I know the following items will be of interest as you are reviewing the budgets. HEALTH INSURANCE Gary and I met with KC Foster for a preliminary review of our health insurance. Because our health insurance now starts on January 1s we will not receive our premium for 2008 until November 1 KC said this year most of his clients are seeing increases between 10 %- 15%. Gary is using a 12% increase for preliminary budgeting purposes. Gary will have a report on the savings the City has experienced by switching health plans at the September budget workshop. SALARY ESTIMATES I will have a report on similar sized and surrounding cities' salaries at the September budget workshop. After discussion with department heads for preliminary budgeting purposes I am using a 7% increase. FUND BALANCE POLICY our General Fund balance has fallen below the amount our auditor recommends. We should think about whether we want to build an actual surplus into the 2008 budget to help increase our fund balance. PROPERTY TAX REVENUES For the first time we are seeing significant delinquencies in the payment of property taxes. In the past these delinquencies so small we didn't have to take notice of them. So as to budget conservatively, Gary and I recommend that we actually anticipate we will only receive 95% of the taxes we will levy for 2008. I have enclosed a copy of the 2007 budget figures as of June 30 and a copy of the proposed 2008 budgets for all departments. Budget08 2 -3- 7/25/2007 City of Otsego General Fund Revenue Budget Revenue Summary Thru Proposed 2004 2005 2006 2007 June 30, 2008 Source Description Actual Actual Actual Budget 2007 Budget 31010 Property Taxes $ 1,197,790 $ 1,498,931 $ 1,855,867 $ 2,482,980 $1,187,198 $ - 32100 Business Licenses 9,405 13,886 17,600 15,000 17,425 - 32210 Dog Licenses 480 260 490 250 332 - 32250 Sign Permits 525 770 1,230 500 360 - 32260 Building Permits 82,000 75,000 75,000 75,000 - - 32270 Septic Permits 7,227 7,000 - 7,000 - - State Grants & Aids 33401 Local Government Aid 1,170 123,264 - - " 33402 Homestead Credit 162,970 163,913 159,687 - 33405 Police Aid 20,096 26,910 28,878 27,000 - - 33406 MSA Maintenance 105,287 99,513 114,050 115,000 58,388 - 33404 Other State Aid 2,350 1,872 1,872 1,872 - - 34050 Administrative fees 235,658 148,702 65,412 35,000 26,147 - Administrative fees -Finan 15,000 - - 25,000 - - 34107 Assessment searches 2,800 1,085 750 2,000 315 - 34130 Streets 3,272 2,643 - 3,000 - - 34105 Maps /copies 1,517 1,241 561 250 185 - 34150 Topo Sales 5,802 12,119 - 2,000 - - 34301 Street, sidewalk & curb 38,920 1,932 - - " 34303 P.W. - charges to other departments Dev. 43,200 20,651 39,360 24,723 12,000 15,000 2,000 - 2,400 - - 34320 Street Light Fees - 34201 Mining Fees - 4,270 155 1,000 - _ 34710 Recreation Fees - 250 210 - 230 36100 Special Assessments 2,012 2,738 1,937 500 - - 36210 Interest Earnings 33,880 39,048 157,095 70,000 28,715 - 36230 Donations - 9,350 140 - - 22,500 - 35,000 50 1,400 - - 38000 38050 Rent Franchise Fees 59,562 44,695 55,075 40,000 32,315 - 39000 Other 4,877 19,530 7,070 - 1,609 - Total Revenue $2,045,150 $ 2,349,723 $ 2,602,162 $ 2,955,352 $1,357,069 $ - Special Tax Levies - 40,000 _ 1999 Street Improvements 55,000 - PW Building payment 36,872 = Public Works Equipment 29,188 - - 170,000 $2,129,338 $ 2,349,723 $ 2,602,162 $ 3,202,224 $1,357,069 $ - -3- 7/25/2007 City of Otsego General Fund Expenditures Budget Expenditure Summary Thru Proposed 2004 2005 2006 2007 June 30, 2008 Dep't Activity Actual Actual Actual Budget 2007 Budget _ 7/25/2007 General Government $ 38,665 $ 45,594 $ 42,929 $ 59,892 $ 19,768 $ 60,642 41100 Mayor &Council 277,636 339,401 452,608 403,366 184,149 435,378 41400 Administration 11,000 1,526 16,283 1,000 21,000 41410 Elections 74,369 118,538 155,573 139,051 75,931 150,4 41600 Finance Assessing 50,176 69,647 64,331 75,125 27,252 76,000 3 41550 23,553 30,368 33,744 31,500 22,703 41700 41530 Legal Planning Commission 1,648 3,768 2,455 5,237 44,200 1, 25,8861 61 5,237 44,200 41570 Planner 58,514 46,293 39,472 9,096 6,500 5,907 6,000 41900 EDA 9,547 92,795 88,310 89,175 87,140 25,772 60,700 41940 City Hall 8,974 7,991 2,909 1,638 3,300 41950 Peavey House 646,877 751,436 908,575 853,011 390,769 897,955 Total Public Safety 455,454 557,720 584,000 688,800 305,140 788,400 42100 42150 Police Police Commission 266 1,598 4,936 1,800 238 2,710 455,720 559,318 588,936 690,600 305,378 791,110 Total Public Works 65,456 57,087 77,198 44,200 30,719 55,0 41560 Engineering 39,521 55,249 76,121 90,000 39,027 90,000 43200 Street Lighting 570,791 531,358 793,316 1 291,982 1,234,190 43100 Street Maintenance 3,692 3,736 6,214 5,500 1,409 4,500 42710 Animal Control 3,954 490 - 41610 Recycling 683,414 647,920 952,849 1291,895 363,137 1,383,690 Total Community Services 11,678 7,969 9,665 11,000 8,186 10,000 43620 Clean Up Day 36,912 80,467 135,459 213,681 29,402 237,681 45200 Park Maintenance 13,251 17,286 26,559 31,000 2,932 31,000 45250 Recreation Services 510 500 212 500 45300 Heritage Preservation 184 - 62,025 105,722 172,193 256,181 40,732 279,181 Total 49360 Other Uses Transfers - capital outlay 252,000 262,887 169,182 154,000 - 170,000 Total Expenditures $2,100,036 $2,327,283 $2,791,735 $3,245,687 $1,100,016 $3,521,936 Less Allocation to Building Inspections - See Page 56 - 163,383 - - Net General Fund Expenditures $2,327,283 $2,628,352 $3,245,687 $$ 3,5 _ 7/25/2007 _� 7/25/2007 City of Otsego General Fund Expenditures Budget Mayor & Council Service Activity Number 41100 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Code Item Actual Actual Actual Budget 2007 Budget Personal Services 101 Salaries & Wages $ 26,925 $ 27,925 $ 27,945 $ 28,000 $ 12,725 $ 28,000 122 FICA & Medicare 2,062 2,303 2,138 2,142 973 2,142 Total Personal Services 28,987 30,228 30,083 30,142 13,698 30,142 Other Services and Charges 33 - 500 275 500 321 Mileage/Travel 355 Dues &Memberships 375 7,156 7,156 7,963 7,750 - 8,500 360 Education/Training /Conf. 554 875 463 1,500 1,295 1,500 Total Other Services and Charges 8,085 8,064 8,426 9,750 1,570 10,500 Other Uses 801 Contingency 1,593 7,302 4,420 20,000 4,500 20,000 Total Service Activity $ 38,665 $ 45,594 $ 42,929 _� 7/25/2007 CITY OF OTSEGO MAYOR AND COUNCIL Account No. Account Name Budget Estimate 101 Salaries & Wages $28,000 The Mayor and City Council pay are included in this category. The expenditure includes the base pay rate plus the additional pay for extra meetings and workshops. The salaries for the Mayor and Council have not changed since 1990. 122 FICA & Medicare $2,142 The Mayor and Council pay is subject to FICA & Medicare payroll taxes computed at a combined 7.65% of gross pay. 321 Mileage/Travel $500 The mileage and travel budget is for the reimbursement of expenditures incurred by the Mayor and Council members in the performance of their duties as elected representatives of the City. The Mayor and Council members are reimbursed at the standard IRS approved mileage reimbursement rates. 355 Dues & Memberships $8,500 The League of Minnesota Cities (LMC) dues are included in this category along with dues from other organizations. The LMC dues are increasing by an estimated 3 %. The budget was increased from $7,750 in 2007 to $8,500 in 2008. 360 Education/Training $1,500 The budget includes money for the Mayor and Council members to attend LMC conferences or others which address issues of concern. The budget is the same as 2007. 801 Contingency $20,000 The contingency budget is the same as prior years. It is intended to be used for expenditures not anticipated during the budget process that may be funded at the Council's discretion. -7- City of Otsego General Fund Expenditures Budget Administration Service Activity Number 41400 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Code Item Actual Actual Actual Budget 2007 Budget Personal Services $ 136,622 $ 142,483 $ 223,423 $ 253,531 $ 108,374 $ 272,34 101 Salaries & Wages - 10,000 10,000 Administrative Intern _ 17,228 143 - - - 104 Part-time 11,438 10,937 13,548 15,846 7,576 17,7 121 PERA/ICMA 12,909 15,189 16,714 20,160 7,347 21,600 122 FICA &Medicare 30,008 27,079 37,135 52,800 19,146 48,235 123 Health &Dental 934 895 1,813 2,204 1,212 2,534 130 Disability 94,515 97,990 Building Inspection alloc. 191,911 213,811 292,776 260,026 143,655 274,428 Total Personal Services Supplies 6,464 5,783 7,583 7,500 3,179 8,0 201/203 Office supplies 1,248 1,684 7,077 2,400 1,052 2,400 206 Postage 7,712 7,467 14,660 9,900 4,231 10,400 Total Supplies Other Services and Charges 28,240 48,367 44,614 55,000 - 60,000 204 Insurance 2,184 8,134 3,074 3,000 3,002 4,000 310 Miscellaneous 2,115 1,380 1,799 2,100 980 2 320 Telephone 30 377 200 400 321 Mileage 290 1,219 972 1,200 368 1,200 340 Recording Fees 7,381 7,476 7,085 16,140 5,253 16,950 347 Newsletter 3,821 8,923 33,311 8,000 7,536 12,000 348 Maps 8,570 12,053 10,447 10,000 4,713 11,000 350 Printing &Publishing 979 1,287 1,592 1,000 647 2,000 355 Dues & Memberships 2,710 1,761 3,865 4,300 1,904 ___±,800 360 Education/Training /Conf. 56,320 90,600 107,136 100,940 24,403 114,550 Total Other Services and Charges Contractual Charges 11,610 7,601 7,556 10,000 3,357 8,000 390 Contracted Services Rentals (copier /office equip. /intemet) 10,083 12, 15,198 12,500 6,394 18,000 410/413 430 Miscellaneous Charges - 6,918 15,282 10,000 2,109 10,00 501 Equipment Total Contractual Charges & Services 21,693 27,523 38,036 32,500 11,860 36,000 $ 277,636 $ 339,401 $ 452,60 $ 403,366 $ 184,149 J $435,378 Total Service Activity - 8 - 7/25/2007 CITY OF OTSEGO ADMINISTRATION Account No. Account Name Budget Estimate 101 $272,347 Salaries & Wages The administrative salaries include the five full -time employees in the department. The five positions include the city administrator, city clerk/zoning administrator, deputy city clerk, administrative assistant and licensing clerk. The gross salaries of each position are included here. A portion of these salaries are allocated to building inspections. The allocation is reported as a reduction of expenditures on the expenditure budget. $10,000 Administrative Intern The City had an administrative intern in 2005. The administrative intern worked on various projects as assigned by the city administrator. The 2005 budget was $10,000 and remains at the same amount for 2008. The money allocated here may also be used to contract for assistance with personnel an d human resources. $0 104 Part-time It is not anticipated that the administrative department will require any Pte" time assistance in 2008. $17,703 121 PERA/ICMA The City contributes to PERA/ICMA foount includes both the PER 50% A and of gross salaries. The above budget am ICMA for the administrative department. $21,600 122 FICA/Medicare The Administration pay is subject toy /FICA & Medicare payroll gross taxes computed at a combine d $48,235 123 Health and Dental The City health insurance is a Blue Cross Blue Shield high deductible health th savings account (HSA). The City con t r ib u t e s up $ deductlible. an d dental insurance premiums and $2,9 0 annua toward the HSA The 2008 dental premiums have increased by 28% and the health insurance is estimated to increase by 12 %. Based on 2007 actual insurance costs and factoring in the 2008 premium increases, the average insurance cost per employee in 2008 will be $804 per month. This budget estimate includes the health an d dental premiums to be paid for the five full -time employees in the administration. &a CITY OF OTSEGO ADMINISTRATION Account No. Account Name Budget Estimate 130 Disability $2,534 The City pays for a short-term and long -term disability insurance policy for all City employees and a life insurance policy. The 2008 insurance premium for the policies totals $760 per month for all city employees. 201/203 Office Supplies $8,000 The budget for supplies continues to increase as the level of services required continues to increase. The 2007 budget is $7,500 and actual expenditures thru June 30 are $3,179. The 2008 budget has been increased to $8,000. Office supplies are allocated to the various departments of the City. This represents the portion of the office supplies charged to administration. 206 Postage $2,400 Postage is an expense that is also allocated to various activities in the City. The administrative portion of postage expense is the same as 2007. 204 Insurance $60,000 This is the City's property and general liability insurance policies along with the department's share of the workmen's compensation premiums. A portion of the premiums are charged to public works, parks, water and sewer. The remaining premiums are charged to the administration budget. 310 Miscellaneous $4,000 The miscellaneous expense budget includes amounts paid for League directories, name plates for boards and commissions, property taxes on city -owned lots and other miscellaneous items. 320 Telephone $2,200 The telephone expense budget is allocated between the various departments of the City. The telephone budget was $2,100 in 2007 and has been increased to $2,200 in 2008. 321 Mileage $400 The budget for mileage has seldom been used but is included again in 2008. The budget amount is the for use by employees who may be required to provide their own transportation to City activities. Those small items include mileage to the clerk's conference, etc. -10- CITY OF OTSEGO ADMINISTRATION Account No. Account Name Budget Estimate 340 Recording Fees $1,200 The budget is for recording fees paid to the County Auditor for new parcels and plats. The actual expenditures have slowed from a high of $1,219 in 2005. The budget remains at $1,200. 347 Newsletter $16,950 The newsletter is prepared bi- monthly for communication of City information to the residents of the community. The expense includes the time for preparation of the newsletter, printing and distribution costs. The budget includes the direct mailing of the newsletter to an estimated 4,200 households six times during 2008. 348 Maps $12,000 The City buys maps for resale. The maps budget for 2008 was increased by $4,000 to $12,000. 350 Printing and Publishing $11,000 The printing and publishing budget includes all the costs of legal notices, meeting minutes, etc. The 2008 budget estimate is increased by $1,000. 355 Dues and Memberships $2,000 The budget includes the miscellaneous memberships of the city including the MCFOA, Chamber dues, etc. The budget has averaged about $1,000 per year over the past three years and has increased by $1,000. 360 Education/Training and Conferences $4,800 The budget includes monies to attend conferences and training programs of benefit to the staff in the administration of the City. The conferences include the National City Managers Association, League of Minnesota Cities, Clerk's Conference and workshops and others. 390 Contracted Services $8,000 The budget includes budget estimates for the services of Softronics in the support of the City's computer systems, Martin Financial Services for the administration of our benefits program, Charter Communications for the City's internet and cable TV services. The budget was increased from $8,000 in 2006 to $10,000 in 2007 and has been reduced to $8,000 again. 410/413 Rentals (copier /office equipment) $18,000 The equipment rental includes the administration costs for the copiers and postage meter. -11- CITY OF OTSEGO ADMINISTRATION Account No. Account Name Budget Estimate 501 Equipment $10,000 The administration equipment budget will be used to finance the costs of file cabinets, workstations and other equipment that may be needed during 2008. -12- City of Otsego General Fund Expenditures Budget Elections Service Activity Number 41410 Thru Proposed 2004 2005 2006 2007 June 30, 2006 Code Item Actual Actual Actual Budget 2007 Budget 103 Election Judges $ 5,500 $ 653 $ 4,417 $ - $ - $ 6,000 205 Election supplies 5,500 873 11,554 1,000 - 15,000 350 Printing 312 Total Service Activity $ 11,000 $ 1,526 $ 16,283 $ 1,000 $ - $ 21,000 Additional election booths were purchased in 2006 to handle the increasing number of voters. The potential relocation to the public works building in 2008 is expected to cost additional money. -13- 7/25/2007 CITY OF OTSEGO ELECTIONS Account No. Account Name Budget Estimate 103 Election Judges $6,000 There is a national election in 2008. Elections and the actual election judge expense in 2006 was $4,417. 205 Election Supplies $15,000 Election supplies in 2008 are expected to increase substantially with the elections in the public works building for the first time. -14- City of Otsego General Fund Expenditures Budget Finance Service Activity Number 41600 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Code Item Actual Actual Actual Budget 2007 Budget Personal Services 101 Salaries & Wages $ 22,467 $ 28,520 $ 71,411 $ 154,202 $ 70,776 $ 164,996 104 Part -time - 1,737 30,284 3,854 21,906 6,123 - 9,638 - 4,555 - 10,725 121 PERA/ICMA 122 FICA & Medicare 2,558 6,074 7,047 11,796 5,277 12,622 123 Health & Dental 7,448 8,722 10,127 31,680 2,986 776 28,941 1,520 130 Disability 194 207 433 1,322 (16,000) (16,000) (16,025) Sewer & Water alloc. - 97,780 Building Inspection alloc. -(93,887 Total Personal Services 34,404 77,661 117,047 98,751 68,370 104,999 Supplies 201/203 General supplies 538 1,002 1,279 1,000 344 1,200 Total Supplies 538 1,002 1,279 1,000 344 1,200 500 500 305 Printed forms - - 111 1,235 500 349 500 350 Printing & publishing - 35 355 Dues & memberships - - 255 696 500 562 1,500 360 Education/Training/Conf. - _ al Other Services & Charges - 366 1,931 1,500 946 2,500 Contractual Charges and Services 15,401 21,600 19,850 25,000 _ 27,500 304 Audit 390 Contracted services 24,026 11,665 13,034 7,500 3,702 8,900 1,400 400 BDS Annual Support - - - 191 1,256 1,176 1,400 1,400 1,256 1,313 1,500 430 Miscellaneous - 6,053 - 2,500 - 2,500 570 Office Equipment Total Contractual Charges & Services 39,427 39,509 35,316 37,800 6,271 41,800 _ Total Service Activity $ 74,369 $118,538 $155,573 $ 139,051 $ 75,931 $$ 1�50,49 -15- 7/25/2007 CITY OF OTSEGO FINANCE Account No. Budget Estimate Account Name 101 Salaries and Wages $164,996 The finance salaries include the three full -time employees in the department. The gross salaries of each position are included here. A these salaries are allocated to building inspections and the water portion of and sewer utility funds. The allocation is reported as a reduction of expenditures as separate line items. $16,025 is allocated to water and sewer and $97,780 is allocated to building inspections. $ -0 104 Part-time The finance department includes one part-time employee that is responsible for utility billing. The salary for that position is split between the water and sewer service enterprise funds. 121 PERA/ICMA $10,725 The City contributes to PERA for all city employees at a rate of 6.50% of gross salaries per state law. The above budget amount includes the PERA for the finance department. 122 FICA/Medicaze $12,622 The finance department pay is subject to FICA &Medicare payroll taxes computed at a combined 7.65% of gross pay. 123 Health and Dental $28,941 The City health insurance is a Blue Cross Blue Shield high deductible health savings account (HSA). The City contributes up to $798 per month for health $2,900 annually toward the HSA deductible. and dental insurance premiums and The 2008 dental premiums have increased by 28% and the health insurance premium is estimated to increase 12 %. Based on 2007 actual insurance costs and factoring in the 2008 premium increases, the average insurance cost per employee in 2008 will be $804 per month. The 2008 budget estimate includes the health and dental premiums to be paid for the three full -time employees in finance. 130 Disability and Life $1,520 The City pays for a short-term and long -term disability insurance policy for all City employees and a life insurance policy. The 2008 insurance premium for the policies totals $760 per month for all city employees. 201/203 $1,200 General/Office Supplies The budget for supplies in the finance department are estimated at $1,200. This represents the portion of the office supplies charged to the finance department. -16- CITY OF OTSEGO FINANCE Account No. Account Name Budget Estimate 305 Printed Forms $500 The budget is used for the cost of checks and other finance department forms. 350 Printing and Publishing $500 The City is required to print financial statement summaries, budget summaries and other information required by statue during the year. The cost of printing this information for the public is charged to the finance department. 360 Education/Training/Conferences $1,500 The budget has been used in prior years to attend League of Minnesota Cities and MCFOA conferences and workshops. Much of the emphasis in 2008 will be human resources education. The budget is increased from $500 in 2007. 304 Audit $27,500 The audit fee continues to increase each year as the level of activity continues to increase in the City. The reporting requirements of GASB 34 have also increased the audit cost. The 2006 audit paid in 2007 was $22,525 and it is expected to increase again this year as additional audit standards continue to require more time. 390 Contracted Services $8,900 The contracted services budget is primarily to pay the cost of the computer support from Softronics and ADP payroll service that now costs approximately $150 per payroll (26 payperiods each year). 400 Banyon Data Services Annual Support $1,400 The annual support for the finance system was $1,256 for 2006. It is not expected to increase in 2008. 430 Miscellaneous $1,500 The miscellaneous category is used for the expense of the annual disclosure report prepared by Northland Securities, Inc. for the bond issues outstanding. The annual disclosure report cost $1,125 for 2006 and is expected to increase as the City has additional bonds issued. 570 Equipment $2,500 The budget will be used to add or replace office equipment needed in the finance department in 2008. -17- Code Item Personal Services 101 Salaries & Wages 121 PERA 122 FICA & Medicare Total Personal Services Other Services and Charges 360 Education/Training /Conf. 390 Contracted services Total Other Services and Charges Total Service Activity City of Otsego 581 - - - General Fund Expenditures Budget 63,750 75,125 27,252 76,000 Assessor 64,331 75,125 27,252 76,000 Service Activity Number 41550 $ 64,331 $ 75,125 $$ 2� $$ 7 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Actual Actual Actual Budget 2007 Budget $ 43,573 $ 43,985 $ 2,726 2,242 - - - 3,507 3,365 - - - - 49,806 49,592 - - - 370 388 581 - - - - 19,667 63,750 75,125 27,252 76,000 370 20,055 64,331 75,125 27,252 76,000 $ 50,176 $ 69,647 $ 64,331 $ 75,125 $$ 2� $$ 7 -18- 7/25/2007 CITY OF OTSEGO ASSESSOR Account No. Account Name Budget Estimate 390 Contracted Services $76,000 The City has contracted for the assessing services for several years. The cost of this service has been calculated on a per parcel basis. In 2008, Wright County will provide these services. The budget estimate is computed as follows: a. 6352 parcels at $10.50 per parcel, and b. 250 new residential construction in 2008 at $25 each, and c. 30 new commercial/industrial construction at $100 each. The parcel count has increased significantly the past several years. The parcel counts are as follow: • 3650 parcels in 2003, • 3979 parcels in 2004, • 4500 (estimated) parcels in 2005, • 6175 parcels in 2006, • 6352 parcels for 2007, and • 6825 parcels estimated for 2008 -19- Code City of Otsego General Fund Expenditures Budget Legal Service Activity Number 41700 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Item Actual Actual Actual Budget 2007 Budget Other Services and Charges 301 Legal services Total Service Activity $ 23,553 $ 30,368 $ 33,744 $ 31,500 $ 22,703 $ 35,000 $ 23,553 $ 30,368 —.— $ 33,744 -- $ 31,500 $ 2_2,703 $ 35,000 -20- 7/25/2007 CITY OF OTSEGO LEGAL Account No. Account Name Budget Estimate 301 Legal Services $35,000 The legal services budget consists of the City's general legal services. All application and developer legal expenses are paid by the individuals and businesses requesting the service and are not accounted for in this budget. Code enforcement legal services are estimated at $10,000 and are included in the Building Inspection Fund budget. The Building Inspection Fund is also allocated 10% of the total estimated general legal services. The total legal budget recap is as follows: General Fund legal services above $35,000 Building Inspection Fund legal services budget 3,500 Code Enforcement legal services budgeted in The Building Inspection Fund 10,000 Total Legal Services Budgeted in All Funds $48,500 -21- Code City of Otsego General Fund Expenditures Budget Planning Commission Service Activity Number 41530 Thru Proposed 2004 2005 2006 2007 June 30, 2008 It em Actual Actual Actual Budget 2007 Budget Personal Services 101 Salaries & Wages 122 FICA & Medicare Total Personal Services Supplies & Other 350 Printing 360 Education/Training /Conf. Total Supplies & Other Total Service Activity $ 1,380 $ 3,500 $ 1,760 $ 4,400 $ 1,745 $ 4,400 106 268 135 337 37 _ 337 _ 1,486 3,768 1,895 4,737 1,782 4,737 162 - - - 560 500 g 500 162 - _ 560 500 6 500 $_ 1648 $ 3,7gg $_ 2,455 $ 5,237 $ zm 7 $ 5,237 -22- 7/25/2007 CITY OF OTSEGO PLANNING COMMISSION Account No. Account Name Budget Estimate 101 Salaries and Wages $4,400 The Planning Commission is paid twice each year. The Planning Commission consists of nine members with meetings scheduled twice each month. The Commission members are paid $20 per meeting. If all members were present and all meetings were held, the total meeting expense would be $4,320. 122 FICA/Medicare $337 The pay is subject to FICA & Medicare payroll taxes computed at a combined 7.65% of gross pay. 360 Education/Training/Conferences $500 The education/training /conference budget has seldom been used in prior years. However, this budget is to be used in connection with Planning Commission Activities as determined to be necessary. RA11 Code Item Other Services and Charges 302 Planning Services Total Service Activity This budget consists of: 1. Meetings 2. General Assignments 3. Special Projects - Council- directed Allocation to Building Inspections Total As Above The budget estimates are provided by the City Planner. City of Otsego 2007 General Fund Expenditures Budget Estimate Planner Estimate Service Activity Number 41570 $ 27,000 $ 27,000 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Actual Actual Actual Budget 2007 Budget 58,514 46,293 39,472 44,200 $ 25,861 44,200 $ 58,514 $ 46,29 $ 39,472 $ 44,200 $ 25,861 $ 44,200 2006 2007 2008 Estimate Estimate Estimate $ 20,500 $ 27,000 $ 27,000 10,500 - - - 25,000 25,000 15% Estimated 4,650 (7,800) 7,800 $ 26,350 $ 44,200 $44,2000 -24- 7/25/2007 CITY OF OTSEGO PLANNER Account No. Account Name Budget Estimate 302 Planning Services $44,200 The City contracts for its planning services with Northwest Associated Consultants, Inc. (NAC). NAC has provided a budget detail included with the detailed expenditure budget. The total planning budget for 2008 is $52,000 and allocated as follows: General planning services above Building Inspection Fund planning services budget Total Planning Services Budget in all Funds The total budget is allocated between the following activities: Meetings Special Projects Total $44,200 7,800 $ 52,000 $27,000 25,000 $ 52,000 -25- City of Otsego General Fund Expenditures Budget Economic Development Authority Service Activity Number 41900 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Code Item Actual Actual Actual Budget 2007 Budget Contractual Charges 390 Contracted Services 430 Miscellaneous Charges Development incentives Total Contractual Charges & Services Total Service Activity 9,547 - 9,096 6,500 5,907 6,000 9,547 - 9,096 6,500 5,907 6,000 $ 9,547 $ - $ 9,096 $ 6,500 $5,90 $ The Long Haul Trucking financial assistance is provided for seven years commencing in 1999. The City will make reimbursements not to exceed a total of $45,500. The annual contribution will be made from the proceeds of the annual tax levy and will be equal to the lesser of $6,500 or the City's portion of property taxes collected from the Development property. Financial assistance paid by the City has been $3,162, $2,844, $2,774, $2,924, $2,491, $3,415 AND $3,217 for the years 1999 - 2005. Lona Haul Truckingpavments were completed in 2005 The Apex Business Center total financial assistance is equal to 3.75% of the buildings market value as of 1/2/99. This assistance computes to a total of $69,082. Financial assistance paid by the City is 30% of taxes paid and has been $5,277, $5,637, $8,435, $7,182, $6,132, $5,878 and $5,907 in the years 2000 -2006 and leaves a remaining balance of $24,631 before the payment of the 2007 taxes. Based on the current payout amounts this will be paid out in 4 - 5 years. -26- 7/25/2007 CITY OF OTSEGO ECONOMIC DEVELOPMENT AUTHORITY Account No. Account Name Budget Estimate 430 Development Incentives $6,000 The City entered into two agreements to provide financial assistance to Long Haul Trucking and Apex Business Center. The financial assistance payments to Long Haul Trucking were completed in 2005. The Apex Business Center financial assistance is projected to be paid over the next 4 — 5 years based on the current payout. Financial assistance is computed as 30% of the taxes paid to the City by Apex each year until the total financial assistance is $69,082. -27- City of Otsego General Fund Expenditures Budget City Hall Service Activity Number 41940 The rent/debt service represents the payment due on the EDA bonds which were used to finance the City Hall building. The rent/debt service is reduced by the amount of the payment which will be made from the Building Inspections Fund. The allocation is based on the estimated use of the building by the inspections department which is $11,130. The total EDA building debt for 2007 is estimated at $44,520. The bonds are held by the Bank of Elk River. The balance due on these bonds is $42,000 at December 31, 2006. The final payment on this debt is December 1, 2007. -28- 7/2512007 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Code Item Actual Actual Actual Budget 2007 Budget Personal Services 101 Salaries & Wages $ - $ - $ - $ - $ - $ - 122 FICA & Medicare - - - - - - Total Personal Services - - - - - - Supplies 203 General supplies 978 958 1,473 1,000 678 1,500 204 Insurance 1,677 - - - - - 220 R & M supplies 49 1,093 100 1,750 57 500 Total Supplies 2,704 2,051 1,573 2,750 735 2,000 Other Services and Charges 322 Utilities 9,370 11,213 12,238 14,000 7,365 16,000 410 Rent/Debt Service 38,928 37,133 34,014 33,390 628 - Total Other Services and Charges 48,298 48,346 46,252 47,390 7,993 16,000 Contractual Charges 325 Garbage service 895 1,024 1,145 1,000 492 1,200 389 Cleaning service 12,491 8,584 10,896 11,000 3,900 9,500 190 Contracted service 22,967 16,700 16,338 18,000 5,680 18,000 400 R & M - Equipment 691 561 2,541 2,000 - 4,000 402 R & M - Building 2,816 10,338 6,478 5,000 1,947 10,000 403 R & M - Improvements 256 - 3,952 - - - 430 Miscellaneous 1,677 706 - - 5,025 - Total Contractual Services 41,793 37,913 41,350 37,000 17,044 42,700 Total Service Activity $ 92,795 $ 88,310 $ 89,175 $ 87,140 $ 25,772 $ 60,700 The rent/debt service represents the payment due on the EDA bonds which were used to finance the City Hall building. The rent/debt service is reduced by the amount of the payment which will be made from the Building Inspections Fund. The allocation is based on the estimated use of the building by the inspections department which is $11,130. The total EDA building debt for 2007 is estimated at $44,520. The bonds are held by the Bank of Elk River. The balance due on these bonds is $42,000 at December 31, 2006. The final payment on this debt is December 1, 2007. -28- 7/2512007 OTH is the Old Town Hall expenses -29- 7/25/2007 City of Otsego General Fund Expenditures Budget Peavey House and Old Town Hall Service Activity Number 41950 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Item Actual Actual Actual Budget 2007 Budget Code 204 Insurance $ 852 $ - $ $ 4,922 5,004 332 - $ 332 $ 500 310 Miscellaneous - OTH 2,864 2,987 2,577 - 1,306 2,800 322 Utilities - OTH 400 Repairs & Maintenance 336 _ ----= --- Total Service Activity $ 8 974 $ 7 991 $ 2 909 $ - --=— ---- $ 1,638 $ 3,300 =10moz=ECOM OTH is the Old Town Hall expenses -29- 7/25/2007 CITY OF OTSEGO CITY HALL Account No. Account Name Budget Estimate 203 General Supplies $1,500 The general supplies include the cleaning supplies that are billed to the City by Long & Sons and other supplies for the city hall building that are purchased directly by the City. 220 R & M Supplies $500 The repair and maintenance supplies budget has not been used to any great extent the past few years. The 2005 expenditures included maintenance costs for the council chamber sound system and fire extinguisher costs. 322 Utilities $16,000 The utilities budget includes the electric and heat expense for city hall. The utility budget for 2007 was $14,000 and as of June 30, 2007 the budget appears to be right on budget. The utility budget is increased by 15% for 2008. 410 Rent/Debt Service $ The rent expense is the debt service payment for the EDA building bonds issued to finance the construction of the city hall in 1992. The Bank of Elk River holds the debt. The balance remaining to be paid on the bonds is $42,000 and the final payment is scheduled to be paid on December 1, 2007. The total principal and interest for 2007 is $44,520, and 25% of that amount is allocated to the Building Inspections Fund. 325 Garbage Service $1,200 The actual cost for garbage service has averaged about $900 over the past three -year period. 389 Cleaning Service $9,500 The cost of cleaning peaked in 2004 while the City still rented the facility to private parties. In 2005, the cleaning service totaled $8,584. The cleaning contract for the next two years provides for monthly cleaning at $725 per month plus some additional cleaning as may be necessary. 390 Contracted Service $18,000 The contracted service budget includes the outside maintenance, the rug and mat service, drinking water supply service, and security alarm service. -30- CITY OF OTSEGO CITY HALL- CONTINUED Account No. Account Name Budget Estimate 400 R & M - Equipment $4,000 The actual expenses for replacement equipment has averaged about $600 per year for the period from 2003 — 2005. The budget projection was $2,000 for 2006 and 2007 and was increased to $4,000 for 2008. 402 R & M — Building $10,000 The building repair and maintenance budget is estimated at $10,000. The budget is increased from $5,000 in 2007. The repair and maintenance expenses have fluctuated significantly the past three years, but does average $5,635. CITY OF OTSEGO PEAVEY HOUSE AND OLD TOWN HALL Account No. Account Name Budget Estimate 310 Miscellaneous $500 The estimate is for unexpected expenditures. 322 Utilities — Old Town Hall $2,800 The 2008 estimate is based on the prior year history of the actual expenses incurred. -31- Public safety includes the following departments and activities: • Police • Police Commission A detailed budget is included for each of these departments or activities. The detailed budget includes historical actual expenditures for the years ended December 31, 2004, 2005, 2006 and six months actual expenditures for 2007. The 2007 budgeted expenditures are also included so expenditures may be compared to prior year actual expenditures and the current year budget. Together with a narrative explanation of the departmental line item expenditure, it is intended the budget document will provide a valuable resource as the City moves forward into 2008. -32- City of Otsego General Fund Expenditures Budget Police Commission Service Activity Number 42150 City of Otsego Thru General Fund Expenditures Budget 2004 2005 2006 Police June 30, 20 07 2008 Bud Actual Service Activity Number 42100 act ual Thru Proposed 2004 2005 2006 2007 Budget June 30, 200 2008 Bud et Code Item Actual Actual Actual Personal Services $ - Other Services and Charges $ 455,454 $ 557,720 $ 584,000 $688,800 $ 305,140 $788,400 390 Contracted police service $ 455,454 $557720 $ 584,000 $688,800 $ 305,140 $788,400 Total Service Activity City of Otsego General Fund Expenditures Budget Police Commission Service Activity Number 42150 -33- 7/25/2007 Thru Proposed 2004 2005 2006 2007 June 30, 20 07 2008 Bud Actual Actual act ual Budget Code Item Personal Services $ - $ 710 $ 990 $ 800 $ - $ 960 101 Salaries & Wages 122 FICA & Medicare - _ 710 990 800 - 960 Total Personal Services Supplies and Other 77 534 3,792 1,000 238 1,500 250 310 Miscellaneous 189 354 1 54 - - 350 Printing /Binding 266 888 3,946 1 ,000 238 1,7 50 Total Supplies & Other $ 266 $ 1,598 $ 4,936 $ 1� $ 23 8 $ Total -33- 7/25/2007 CITY OF OTSEGO POLICE Account No. Account Name Budget Estimate 390 Contracted Police Service $788,400 The City contracts for police services with the Wright County sheriff's office. The hours of coverage by the sheriff's office have increased from 24 hours per day to 32 hours per day in 2005. The hours of coverage were budgeted to increase to 40 hours per day on July 1, 2007. The increase in coverage has been delayed, however. The 2008 budget is based on 40 hours per day $54/ hour, an increase from $52.50 per hour in 2007. The same letter quoted the 2009 hourly rate at $56/ hour. The historical cost for police services for 2004 to 2007 is included in the Department's detailed budget. CITY OF OTSEGO POLICE COMMISSION Account No. Account Name Budget Estimate 101 Salaries & Wages $960 The police commission consists of eight members that are paid $10 per meeting. The police commission meets monthly. The police commission budget remains the same as the prior year. The 2006 actual police commission pay was $990. 310 Miscellaneous $1,500 The budget is used to pay for police commission activities such as the McGruff stickers. 350 Printing/Binding $250 The Commission spends money printing flyers and other items. -34- -32- CITY OF OTSEGO PUBLIC WORKS Public works includes the following departments and activities: • City Engineer • Street Lighting • Street Maintenance A detailed budget is included for each of these departments or activities. The detailed budget includes historical actual expenditures for the years ended December 31, 2004, 2005, 2006 and six months actual expenditures for 2007. The 2007 budgeted expenditures are also included so expenditures may be compared to prior year actual expenditures and the current year budget. Together with a narrative explanation of the departmental line item expenditure, it is intended the budget document will provide a valuable resource as the City moves forward into 2008. -35- 7/25/2007 -36- City of Otsego General Fund Expenditures Budget Engineering Service Activity Number 41560 Thru Proposed 2004 2005 2006 Actual Actual 2007 Budget June 30, 2007 2008 Budget erode Item Actual Other Services and Charges $ 65,456 $ 57,087 $ 77,198 $ 44,200 $ 30,719 $ _55,00 390 Engineering Services $ 65,456 $ 57,087 $ 77,198 $ 44,200 $ 30 ,719 $ Total Service Activity 7/25/2007 -36- City of Otsego General Fund Expenditures Budget Street Lighting Service Activity Number 43160 Thru Proposed 2004 2005 2006 2007 June 30, 2008 erode Item Actual Actual Actual Budget 2007 Budget Other Services and Charges 322 Electrical Services $ 39,521 $ 55,249 $ 76,121 $ 90,000 $ 39,027 $ 90,000 Total Service Activity $ 39,521 $ 55,249 $ 76,121 $ 90,000 $ 39,027 $ 90,000 7/25/2007 -37- CITY OF OTSEGO ENGINEERING DEPARTMENT Account No. Account Name Budget Estimate 390 Engineering Services $55,000 The City engineer's have assisted in the preparation of the 2008 budget amount. The total budget is $62,800 with $7,800 allocated to the Building Inspections Department and the remaining balance of $55,000 allocated to the General Fund. This budget includes the general engineering services for the City. Project specific costs and those costs attributable to developers are charged to the project or the developer's escrow account and are not accounted for in this budget. CITY OF OTSEGO STREET LIGHTING BUDGET Account No. Account Name Budget Estimate 322 Electrical Services $90,000 The 2007 budget was an increase of $20,000 over 2006 and the 2008 budget will remain at that level. The City budget has consistently not been sufficient to cover these costs. The continued development drives this budget category. Developers are charged an estimate to finance the initial street lighting expenditures (generally a period of up to two years). The City picks up the street lighting expenditures after the initial period is over. -38- Code City of Otsego General Fund Expenditures Budget Streets & Roads Service Activity Number 43100 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Item Actual Actual Actual Budget 2007 Budget Personal Services $ 137,605 $ 149,659 $ 177,199 $ 205,878 $ 106,721 $ 236,4 101 Salaries & Wages 4,563 1,151 1,233 8,000 8,938 8,000 102 Overtime 325 20,191 35,584 23,212 13,631 42,630 104 Part-time 11,299 8,504 12,699 14,818 7,985 18,658 121 PERA 10,277 12,413 16,288 18,137 10,006 21,959 122 FICA &Medicare 23,900 14,767 10,563 52,800 12,694 48,235 123 Health &Dental 1,648 1,698 2,236 2,204 1,819 6,578 130 Disability 30,725 30,000 45,000 1,199 21,155 30,000 45,000 30,122 32,959 33,327 189,292 208,383 255,802 325,049 161,794 378,432 Total Personal Services 60,224 1_ 86_800 Supplies 202 Gas, oil & propane 14,864 20,755 49,503 14,082 30,000 15,000 16,438 13,302 33,000 16, 210 Operating supplies 8,224 17,573 8,859 9,522 15,791 18,000 4,839 18,000 220 R & M supplies 5,221 166 5,000 5,000 392 Stormwater maintenance /culvert - 1,931 3,524 2,472 10,000 2,901 1 393 Street signs 5,000 Safety Supplies - -- 42,592 47,881 82,014 78,000 37,480 87200 Total Supplies Other Services and Charges 225 Uniforms 204 I nsurance/W .Comp. 240 Small tools /equipment 310 Miscellaneous 320 Telephone /Comm. 322 Utilities 322 Utilities - Alarms 325 Garbage service 350 Printing 360 Education /training /conf. 370 Sand & gravel 372/373 Salt & sand Total Other Services and Charges 3,491 3,898 5,446 7,000 3,657 7,000 38,000 13,334 14,005 2,961 31,323 3,698 35,000 5,000 - 3,805 10,000 1,309 3,932 6,099 1,444 2,000 4,556 2,000 7,000 1,712 2,221 4,110 3,975 5,000 15,000 2,642 19,745 41,950 4,998 4,917 _ - 1,850 1,268 - 543 1,000 - 663 - 837 1,000 750 825 1,275 2,000 2,085 2,000 6,578 308 30,725 30,000 45,000 1,199 21,155 30,000 45,000 30,122 32,959 33,327 66,226 68,193 117,254 146,000 60,224 1_ 86_800 7/26/2007 City of Otsego General Fund Expenditures Budget Streets & Roads Service Activity Number 43100 Public works department would like unexpended budgeted amounts to be added to capital outlay on a yearly basis. This would include the unexpended balances in accounts 501 - capital outlay for small equipment and account 437 - pavement management only. No additional amounts were transferred in 2006 since the pavement management expenses exceeded the budget of both items combined. 7/26/2007 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Code Item Actual Actual Actual Budget 2007 Budget Other Services and Charges - continued 390 Contracted services 200 889 772 1,000 1,915 1,000 400 R & M - equipment 40,760 4,226 4,493 5,000 5,000 402/403 R & M - Bldgs 253 604 1,547 10,000 39 23,000 410 Rentals (PW Building Debt) - - - 180,000 - 175,000 410 Rentals - Equipment 385 2,329 2,096 5,000 1,500 5,000 434 Blacktop supplies 1,064 - 2,028 5,000 242 5,000 437 Pavement Management - 245,550 312,958 - 312,958 * ** Crackfilling 735 17,940 - - - - * ** Sealcoating 132,455 113,203 - - - - * ** Street sweeping 8,790 - - - - - * ** Dust coating 676 225 2,848 - - 12,500 720 1999 Overlay Projects 55,000 55,000 45,000 40,000 - 37,500 (For Debt Service) - - - - - - Total Contractual Charges & Services 240,318 194,416 304,334 558,958 3,696 576,958 Capital Outlay 501 Equipment - Lease /CI payment 26,033 - 29,188 29,188 28,788 - Capital outlay - small equipment 6,330 12,485 4,151 15,000 - 10,000 Total Capital Outlay 32,363 12,485 33,339 44,188 28,788 10,000 al Service Activity $ 570,791 $ 531,358 $ 792,743 $1,152,195 $ 291,982 $ 1,239,190 ** The debt service contribution for the 1999 overlay has been adjusted to reflect transfers and prepaid special assessments since 1999. The City's share of the 1999 Overlay is estimated at $45,000 annually. The $37,500 is financed by a special levy as authorized by current tax law. The $37,500 tax levy is reported as revenue on the Revenue Summary on page 3. * ** Pavement management (#437) includes the line items for sealcoating, crackfilling,contract blacktop patching, and striping - small overlays Public works department would like unexpended budgeted amounts to be added to capital outlay on a yearly basis. This would include the unexpended balances in accounts 501 - capital outlay for small equipment and account 437 - pavement management only. No additional amounts were transferred in 2006 since the pavement management expenses exceeded the budget of both items combined. 7/26/2007 CITY OF OTSEGO STREET MAINTENANCE Account No. Account Name Budget Estimate 101 Salaries & Wages $236,416 The budget includes five full -time employees, and one at 80 %. This budget does not include the one full -time and three part-time employees budgeted in the park maintenance department. 102 Overtime $8,000 The amount estimated for overtime is the same as 2007. The 2007 total thru June 30 is $8938. Overtime is primarily associated with the winter snowplowing. Part-Time $42,630 The part-time budget includes one seasonal part-time employee for 24 hours per week from November 1 thru April 1 and one on -call employee for snow removal. 121 PERA $18,658 The City contributes to PERA for all city employees at a rate of 6.5% of gross salaries. The above budget amount includes the PERA for the public works department. 122 FICA/Medicare $21,959 The public works department pay is subject to FICA & Medicare payroll taxes computed at a combined 7.65% of gross pay. 123 Health and Dental $48,235 The City health insurance is a Blue Cross Blue Shield high deductible health savings account (HSA). The City contributes up to $798 per month for health and dental insurance premiums and $2,900 annually toward the HSA deductible. The 2008 dental premiums have increased by 28% and the health insurance is estimated to increase by 12 %. Based on 2007 actual insurance costs and factoring in the 2008 premium increases, the average insurance cost per employee in 2008 will be $804 per month. This budget estimate includes the health and dental premiums to be paid for the full -time employees in public works. 130 Disability $2,534 The City pays for a short-term and long -term disability insurance policy for all City employees and a life insurance policy. The 2008 insurance premium for the policies totals $760 per month for all city employees. 202 Gas, diesel, & Oil $33,000 The budget was increased $3000 to reflect the growth of the city and based on an estimate of $3 per gallon. Computerized monitoring with the new system will help in estimating future budgets. Also timing the market for purchases and bulk purchasing rather than the keep full program will be used to reduce costs. -41- CITY OF OTSEGO STREET MAINTENANCE Account No. Account Name Budget Estimate $16,000 210 Operating Supplies The operating supplies budget was increased by $1,000. The operating supplies budget is used for the purchase of wear items or supplies with no capital value. For example: tires cutting edges, batteries, for the nuts, bolts, and connectors. As of cleaning supplies, filters, light bulbs, brooms sweeper, June 30, 2007, $7315 was spent on cutting edges, sweeper brooms, and tires. 220 Repair and Maintenance Supplies $18,000 budget is the same as prior years. These Repair and maintenance supplies costs include equipment repair supplies which are coded to each vehicle. 392 Stormwater Maintenance $5,000 The stormwater maintenance budget is the same as 2007. It will be used for culverts and other supplies needed to maintain the storm sewer system. 393 Street Signs $10,000 The street signs budget will mainly be used to purchase materials to make signs. In 2007 we purchased software and equipment to manufacture signs in- house. The Council has requested The estimate is that there are 600 information to upgrade to 9" signs on municipal streets. current plates and 150 stems on main and MSA streets only. * ** Safety Supplies $5,000 The city is required to have a budget line for safety supplies. This budget will be used to purchase personnel safety equipment such as hard hats, first aid kits, fire extinguishers, ear plugs, safety vests and coats, signs, ect. 225 Uniforms, Rugs and Rags $7,000 No increase is recommended for 2008. The PW department will be developing a uniform policy. 204 Insurance $38,000 This is the City's property and general liability insurance policies along with the department's share of the workmen's compensation premiums. A portion of the premiums are charged to public works, parks, water and sewer. The remaining premiums are charged to the administration budget. 240 Small Tools and Equipment $10,000 The budget for 2008 was increased $5,000 to be used for equipment purchased under $1,000. The capital outlay account was reduced by the same amount. 310 Miscellaneous Supplies $2,000 The category includes the cost of license tabs, etc. The 2007 budget is the same. -42- CITY OF OTSEGO STREET MAINTENANCE Account No. Account Name Budget Estimate 320 Telephone $7,000 The budget is increased by $2000 to adjust to the new building and three additional lines to monitor security, fire, and elevator. 322 Utilities $41,950 The budget increased from $15000 in 2007. Estimates for 2008 are from the short history of billings since occupying the new public works facility. The budget for the old facility was reduced by 60 %. 360 Education/training /conferences $2,000 The costs include the cost of dues for MPSA, MSSWA and MPWA and the training necessary to keep employees up to date on equipment training and safety. 370 Class 5 & Rock $30,000 The budget includes costs for rock to repair frost boils and the material costs to continue to repair and reshape gravel road surfaces. In 2008, I will be working with the city engineer to update the gravel road maintenance management plan. 373 Salt & Sand $45,000 The budget for 2008 will stay the same. We have a remaining stockpile of salt in the shed from 2007 to make up the increase needed to maintain the additional roads constructed. 390 Miscellaneous Contracted Services $ 1,000 The budget estimate is the same as prior years. 400 Contracted Repair & Maintenance — Equipment $5,000 The equipment repair budget has been doubled to reflect the expected increase in equipment repair because of the expanded public works workload and equipment obtained the past two years. -43- CITY OF OTSEGO STREET MAINTENANCE Account No. Account Name Budget Estimate 402 -403 Repair & Maintenance — Building $23,000 The 2008 budget is for service contracts for HVAC, alarms, elevator, generator, cleaning, and septic pumping. Some maintenance will also be needed at the old facility. 410 Equipment Rental $5,000 The public works department will need equipment periodically that the City does not own. 410 Building Rental/Debt Service $175,000 The building rental is the amount of lease to be paid to the EDA for the new public works building. 434 Blacktop Supplies $5,000 It is estimated that both the cost and amount of blacktop supplies will increase with the additional number of streets to be maintained. 437 Pavement Management Program $312,958 The City engineer has developed a detail listing of expected costs in 2007. The significant increase in this cost is expected to continue into the future as the number and age of streets continues to increase. The pavement management program also includes approximately $5,000 for curb repair. 720 Overlay Projects $37,500 The overlay projects amount represents the City's share of the 1999 overlay project. This contribution is reviewed annually to determine whether the City's contribution plus the special assessments levied against benefiting properties is sufficient to pay the debt service cost. -44- City of Otsego General Fund Expenditures Budget Other Community Service Activities - 43620 & 45400 Code Item Clean Up Day Code Item Personal Services 101 Salaries & Wages 104 Part-time 121 PERA 122 FICA & Medicare 123 Health & Dental 130 Disability Total Personal Services itractual Charges 202 Gas & oil 210 Operating supplies 204 Insurance 240 Small tools and equipment 310 Miscellaneous 322 Utilities 325 Garbage 400 R & M equip /park maint. Budget Paths - pavement management 410 Rentals 390 Contracted mowing Total Contractual Charges & Services Capital Outlay 501 Equipment Total Service Activity The contracted mowing line item was revised to reflect city mowing and turf maintenance for most all areas. The following is the reallocation of the mowing budget from prior years. The 2007 budget allocation is based on the turf maintenance analysis memo. An additional $23,000 was added to part-time salaries, related Qnefit costs ($3,200), additional gas & oil of $4,725 and repair & maintenance of $3,775. e 2008 salary budget is based on a salary allocation worksheet and is explained in the narrative. -46- 7/25/2007 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Actual Actual Actual Budget 2007 Budget 7,969 $ 9,665 $ 11,000 $ 8,186 $ City of Otsego General Fund Expenditures Budget Park Maintenance Service Activity Number 45200 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Actual Actual Actual Budget 2007_ Budget $ - $ 5,458 $ 36,529 $ 41,912 $ 13,317 $ 44,846 50,000 24,000 2,192 4,057 815 2,915 719 2,794 7,031 664 5,267 1,229 7,392 10,560 - 9,647 - 441 - 507 - 7,406 48,907 114,001 14,796 87,181 - - 7,725 315 7,500 3,103 1,482 5,000 4,035 10,000 10,874 12,540 24,696 26,000 - 30,000 - 276 500 578 5,000 1,005 469 6,320 500 - 500 - 2,467 2,500 4,067 22,000 1,000 371 1,166 2,017 18,775 402 14,000 _ - - 25,000 - 25,000 - 8,410 8,657 3,380 2,027 7,500 24,662 46,968 28,129 10,300 3,182 _ 18__000 36,912 72,656 74,044 99,680 14,606 140,500 - 405 12,508 - - � 0 _ L36,912 $ 80,467 $1 $ 213,681 29,402 $ 237,681 The contracted mowing line item was revised to reflect city mowing and turf maintenance for most all areas. The following is the reallocation of the mowing budget from prior years. The 2007 budget allocation is based on the turf maintenance analysis memo. An additional $23,000 was added to part-time salaries, related Qnefit costs ($3,200), additional gas & oil of $4,725 and repair & maintenance of $3,775. e 2008 salary budget is based on a salary allocation worksheet and is explained in the narrative. -46- 7/25/2007 Supplies 202 Gas & oil 1,717 - 203 General supplies - _ 210 Operating supplies _ _ 250 Merchandise for resale - _ 220 R & M supplies Total Supplies Other Services and Charges City of Otsego 280 320 Telephone General Fund Expenditures Budget 355 Dues & memberships - - - Recreation Services - Park Commission Activities 576 1,121 1,535 350 Printing & publishing Service Activity Number Thru Proposed 200 2004 2005 2006 2007 June 30, 2007 2008 Budget Actual Actual Actual Budget 2,424 1,635 - 212 - Code Item Personal Services $ 464 $ 760 $ 1,270 $ 1,000 $ - $ 1,000 101 Park Commission 36 - " 122 FICA/Med 500 760 1,270 1,000 - 1,000 Total Personal Services Supplies 202 Gas & oil 1,717 - 203 General supplies - _ 210 Operating supplies _ _ 250 Merchandise for resale - _ 220 R & M supplies Total Supplies Other Services and Charges 423 280 320 Telephone _ _ - 355 Dues & memberships - - - 360 Education /training /conf. 576 1,121 1,535 350 Printing & publishing - _ - Fertilizer/weed control 200 1,023 100 = 1 2 310 Miscellaneous Other Services and Charges 1,199 2,424 1,635 - 212 - otal Contractual Charges 4,843 _ _ 410 Rentals ___ 1992 14,102 23,654 30,000 2,720 30,000 440 Recreation programming Total Contractual Charges &Services __ _L,835 4 102 23,654 30,000 2,720 30,000 $ 13,251 $ 17,286 $ 26,559 $$ 31,000 $ 2,932 $ Total Service Activity Recreation programming is the local activities organized by the Parks Commission, and administered by the Elk River School District's Community Education Office. From reports received from ISD, the programs have good participation and are well received. The soccer and tennis are covering the costs. 7/25/2007 -47- CITY OF OTSEGO PARK MAINTENANCE -48- Budget Estimate Account No. Account Name $41,912 101 Salaries & Wages The salaries include the equivalent of one full -time employee. While the time be the same individual, it is dedicated to park maintenance will not always time will approximate one FTE. estimated the amount of $50,000 103 Part-time Salaries & Wages salaries total $27,000 for the estimated salaries of two park The part-time maintenance season. The done by the City th category employees for ity atherthan by additionasummer l $23,000 for mowing in an the current contractor. $4,057 121 PERA The City contributes to PERA for all city employees at a rate of 6.25% of gross for the finance department. salaries. The above budget amount includes the PERA $7,031 122 FICA/Medicare is subject to FICA & Medicare payroll The park department pay taxes computed at a combined 7.65% of gross pay. $10,560 123 Health and Dental The City health insurance is a Blue Cross Blue Shield high deductible health to $720 per month for health savings account (HSA). The City contributes up and dental insurance premiums and $1,925 annually toward the HSA deductible health and dental premiums to be a total of $880 per month. This budget estimate includes the or paid for the one full -time employee in parks. $441 130 Disability The City pays for a short-term and long -term disability insurance policy for for the short-term policy only all City employees. The 2006 insurance premium or $18.82 per employee. The short-term and is $244.64 for 13 employees long -term disability premium will be approximately $441 per year per employee. $7,725 202 Gas & Oil The gas and oil budget includes $3,000 for summer maintenance plus an to the City completing additional $4,725 for the shift from contracted mowing this work itself. $5,000 203/210 Operating Supplies supplies expenditures totaled $3,103. With the additional The 2005 operating added to the system, it is expected the cost will increase. parks -48- CITY OF OTSEGO PARK MAINTENANCE Account No. Account Name Budget Estimate 204 Insurance $30,000 The budget includes the estimate of the property insurance and the workmen's compensation insurance paid for park department employees. The cost continue to increase from $12,540 in 2005 to $24,696 in 2006. The additional parks added to the system in 2006 along with the additional City staff time will increase these costs. 240 Small Tools $5,000 The small tools budget has been increased from $500 in 2007 to $5,000 in 2007. 310 Miscellaneous $500 The miscellaneous budget is $500 for 2008. Previous years have had no budget in this category but actual expenditures have totaled over $1,900 over the past three years. 322 Utilities $22,000 The park department has had no utilities budget in prior years. The parks will be charged for water usage for the sprinkler systems for the first time in 2007. Based on 2007 water usage to date and three new parks, it is expected the water Utility cost will be $12,000 with electric and telephone estimated at $10,000. 325 Garbage $1,000 Park cleanup is estimated at $1,000. This cost was previously included as part of the public works budget. 400 Repair & Maintenance Equipment/Park Maintenance $14,000 The budget was increased from $5,000 in 2006 to reflect the additional costs of maintaining the new parks in the City. The budget also includes the cost of maintaining the park maintenance equipment. The budget is less than 2007 as some of these costs are reclassified to operating supplies. 400 Park Path Pavement Management $25,000 The City has established a park maintenance program for the park paths in the system. It is intended that the unexpended balance within this budget line item will be carried forward to the following year as the city begins to plan for the future maintenance of the park path system. 410 Rentals $7,500 The rental budget is $7,500 compared to $3,380 in 2007. The rental costs include the portable facilities that are placed in the parks during the summer season. -49- CITY OF OTSEGO PARK MAINTENANCE - CONTINUED Account No. Account Name Budget Estimate 390 Contracted Mowing $18,000 The contracted mowing was reduced from $40,000 in 2006 to $10,300 in 2007 in anticipation of the City providing most of this service. The part-time employee payroll and other departmental expenditure line items have been adjusted to reflect the shift of costs from this line item. The contract mowing estimate has increased for 2008. 501 Capital Equipment $10,000 The capital equipment is detailed in the capital equipment plan. The $10,000 is to finance that portion of the 2008 equipment expenditures. CITY OF OTSEGO OTHER COMMUNITY SERVICE ACTIVITIES Account No. Account Name Budget Estimate 390 Clean-up Day $10,000 The City's clean up day program is coordinated through Elk River Landfill, Inc. Citizens receive a voucher for one trip to the Elk River Landfill. The City is billed by Elk River Landfill for the vouchers turned in by citizens using the landfill. CITY OF OTSEGO RECREATION SERVICES — PARK COMMISSION ACTIVITIES Account No. Account Name Budget Estimate 101 Park Commission Salaries $1,000 The Park Commission members are paid $10 per meeting. The Commission members meet monthly. This is the same as the 2007 estimate. 440 Recreation Programming $30,000 The recreation programming is the local activities organized by the Commission and administered by the Elk River School District's Community Education Office plus the recreational events put on by the Commission including the Easter Egg Hunt, Pumpkin Patch Day and Santa Day. -50- -51- 7/25/2007 City of Otsego General Fund Expenditures Budget Animal Control Service Activity Number 42710 Thru Proposed 2004 2005 2006 2007 June 30, 2008 .;ode Item Actual Actual Actual Budget 2007 Budget Other Services and Charges 390 Animal control services $ 3,692 $ 3,736 $ 6,214 $ 5,500 $ 1,409 $ 4,500 Total Service Activity $ 3,692 $ 3,736 $ 6,214 $ 5,500 $ 1,409 $4,50 203 Supplies $ - $ $ $ - $ $ - 390 Contract services 3,954 490 Total Service Activity $ 3,954 $ 490 $ - $ - $- -51- 7/25/2007 CITY OF OTSEGO ANIMAL CONTROL Account No. Account Name Budget Estimate 390 Animal Control Services $4,500 The animal control services are provided on a contractual basis. The cost of these services have increased and is probably attributable to the growth in population in recent years. -52- -53- 7/25/2007 City of Otsego General Fund Expenditures Budget Heritage Preservation Commission Service Activity Number 45300 Thru Proposed 2004 2005 2006 2007 June 30, 2008 Item Actual Actual Actual Budget 2007 Budget Code Personal Services $ _ $ - $ 380 $$ 500 $ - $ 5 00 101 Salaries & wages 380 500 - 500 00 Total Personal Services ---- - - Other Services & Charges 30 - - - 350 Printing & Publishing 161 - 355 Dues & Membership _ 100 360 Education/training /conf. _ _ _ _ 390 Contracted services - 212 _ 310 Miscellaneous 23 --- Total Other Services and Charges - 184 .-- 130 - 212 _ _ # $ 184 $ _ $ 510 $ 500 $ 212 � $ 500 Total Service Activity -53- 7/25/2007 CITY OF OTSEGO HERITAGE PRESERVATION COMMISSION Account No. Account Name Budget Estimate 101 Salaries and Wages $500 The Heritage Preservation Commission members are paid $10 per meeting. The Commission members are scheduled to meet monthly. -54-