04-25-07 City o ego
Report the Activity of City Capital Project Accounts
Year Ended December 31, 2006
MSA Revolving
Construction Capital
Account Improvement
403 414
Fund Balance, January 1 $ 890,415 $ 1,559,560
Add 2006 Revenue
Special Assessments 979 6,839
Interest Earned 36,739 63,866
2006 Additions 37,718 70,705
Balance and Additions 928,133 1,630,265
Less 2006 Expenditures
Transfer to finance the balance 2006 Maciver & 70th Street 348,284 Total advance to Maciver to date is $866,000
Transfer to finance the I94 /CSAH 37 costs to date 54,293
Transfer to finance the 194 Industrial Park """ 637,677
Transfer to finance the Wellhead Protection costs to date -Water Fund -
Grenins Mississippi Hills - HydroVac 759
Mueller Septic project "'"' 15,580
Public Hearing for 62nd /Quale 222
Other legal & engineering for projects 471
2006 Expenditures 348,284 709,002
Fund Balance, December 31 $ 579,849 $ 921,263
2007 Projects financed from these sources
Grenins- Mississippi $ - $ 230,000
39 & 42 project due to State of MN - the portion not charged to N. Miss. watershed 50,000
Friendship Addition - 230,000
Waterfront East extension to Fitness Center - 500,000
Balance of Maciver project 136,715 -
$ 136,715 $ 1,010,000
'"" The projects noted have been or will be assessed. The special assessments when collected will be credited back to Fund 414
? ?? These 2007 project costs and/or estimates for projects are not final or approved.
•
April 18, 2007
TO: Judy Hudson, Mike Robertson and Gary Groen
FROM: Sue Frisch
REF: Landcor
I received the attached letter from Landcor on 4/17/07 requesting the refund of his credit
balance ($5,003.94) on the Hotel/Water Park escrow account. After speaking to Ron on
4/18/07, it is my understanding that the warranty period is over on this project. The
credit could be refunded at this time, except for the fact that they owe the City of Otsego
on some of their other projects. One particular concern is the daycare s/w extension.
Following are the balances of each of the escrow accounts as of the 4/2/07 statement
date:
Bob's Produce $1,612.06 (Paid $1,504.40 on 4/11/07 — new balance is $107.66)
Daycare — S/W Extension $19,128.32 (Past due — disputing charges)
Hotel/Water Park ($5,003.94)
Waterfront East & Outlots $5,972.17 (Balance due after assessments)
Waterfront East 3 ($1,559.76)
Please advise as to how you would like to proceed with the response to this request.
Thank you.
LandCor, Inc. Lc, i LandCor
Real Estate Bcokers, Property Managers landCor Companies Construction, Inc.
oev 1p I¢ General coptwtors
} c
April 16, 2007
City of Otsego
8899 NE Nashua Avenue
,.P
Elk River, MN 55330
Re: Statement HotellWater Park #701 -22346
Dear City of Otsego,
The above mentioned statement shows a credit balance of $5003.94.
Please refund that amount back to us in a timely manner.
Thank you,
Bob Fields
CEO
9325 Upland Lane North, Suite 300 • Maple Grove, MN 55369
Phone: 763- 463 -8800 • Fax: 763 - 463 -8801 • www.landcorinc.com
CITY OF
OTSEGO Nashua Avenue N.E. • Otsego, M.\ . 5330
(763) 441 -4414 • Fax: (763) 441 -8823
ON THE GREAT RIVER ROAD E -mail: cityhall @ci.otsego.mn.us
STATEMENT
LANDCOR, INC. # 701 -22346
9325 UPLAND LANE NORTH, #300 DATE: 4/2/07
MAPLE GROVE, MN 55369
PROJECT: HOTEL/WATER PARK
DATE I DESCRIPTION I RECEIVED I EXPENDED I BAL DUE
CREDIT BALANCE FORWARD (5,003.94)
ACCOUNT BALANCE: ($5,003.94)
THIS IS A STATEMENT OF YOUR ACCOUNT WITH THE CITY OF OTSEGO.
IF A BALANCE IS DUE, PLEASE REMIT PAYMENT TO THE ADDRESS ABOVE.
CITY OF
O Nashua Avenue N.E. • Otsego, MN '330
(763) 441 - 4414 • Fax: (763) 441 - 8823
ON THE GREAT RIVER ROAD E -mail: cityhall@ci.otsego.mn.us
STATEMENT
LANDCOR CONSTRUCTION, INC. DATE: 4/2/07
9325 UPLAND LANE NORTH, #300
MAPLE GROVE, MN 55369
DATE I DESCRIPTION IRECEIVEDIEXPENDEDI BAL DUE
WFE PUD & FINAL #701 -22328
BALANCE FORWARD 1,336.50
1/17/2007 COURI MACARTHUR 159.50 1,496.00
1/25/2007 HAKANSON ANDERSON ASSOC., INC. 528.00 2,024.00
3/26/2007 HAKANSON ANDERSON ASSOC., INC. 852.88 2,876.88
•
WFE - OUTLOT L, BLDG B #701 -22454
BALANCE FORWARD 0.00
1/25/2007 HAKANSON ANDERSON ASSOC., INC. 470.88 470.88
WFE - OUTLOT M, BLDG A #701 -22455
BALANCE FORWARD 0.00
WFE - OUTLOT H, BLDG F #701 -22456
BALANCE FORWARD (528.71)
WFE - OUTLOT I, BLDG E #701 -22457
BALANCE FORWARD 0.00
1/25/2007 HAKANSON ANDERSON ASSOC., INC. 470.88 470.88
WFE - OUTLOT J, BLDG D #701 -22458
BALANCE FORWARD 665.00
1/3/2007 NORTHWEST ASSOC. CONSULTANTS 107.65 772.65
3/1/2007 NORTHWEST ASSOC. CONSULTANTS 42.00 814.65
WFE - OUTLOT K, BLDG C #701 -22459
BALANCE FORWARD 1,727.36
1/3/2007 NORTHWEST ASSOC. CONSULTANTS 98.23 1,825.59
3/1/2007 NORTHWEST ASSOC. CONSULTANTS 42.00 1,867.59
ACCOUNT BALANCE: $5,972.17
THIS IS A STATEMENT OF YOUR ACCOUNT WITH THE CITY OF OTSEGO.
IF A BALANCE IS DUE, PLEASE REMIT PAYMENT TO THE ADDRESS ABOVE.
CITY OF
O ' I ' SEGO 8899 Nashua Avenue N.E. • Otsego, M' 553
g , 30
(763) 441 - 4414 • Fax: (763) 441 - 8823
ON THE GREAT RIVER ROAD E -mail: cityhall@ci.otsego.mn.us
STATEMENT
# 701 -21856
LAND FUNDING I, LLC. DATE: 4/2/07
9325 UPLAND LANE N, SUITE 300
MAPLE GROVE, MN 55369
PROJECT: WATERFRONT EAST - 3RD ADDITION
DATE I DESCRIPTION I RECEIVED EXPENDED BAL DUE I
3/1/2007 NORTHWEST ASSOC. CONSULTANTS 367.50 367.50
3/6/2007 COURT MACARTHUR 690.00 1,057.50
3/12/2007 ESCROW DEPOSIT 5,300.00 (4,242.50)
3/23/2007. COURI MACARTHUR 2,070.00 (2,172.50)
3/27/2007 HAKANSON ANDERSON ASSOC. INC. 612.74 (1,559.76)
ACCOUNT BALANCE: ($1,559.76)
THIS IS A STATEMENT OF YOUR ACCOUNT WITH THE CITY OF OTSEGO.
IF A BALANCE IS DUE, PLEASE REMIT PAYMENT TO THE ADDRESS ABOVE.
CITY OF
r ....s....,.. =OTSEGO
8899 Nashua Avenue N.E. • Otsego, `. `\ 55330
(763) 441 4414 • Fax: (763) 441 - 8823
ON THE GREAT RIVER ROAD E -mail: cityhall@ci.otsego.mn.us
STATEMENT
LANDCOR, INC. # 701 -22486
9325 UPLAND LANE N, #300 DATE: 4/2/07
MAPLE GROVE, MN 55369
PROJECT: BOB'S PRODUCE
I DATE I DESCRIPTION I RECEIVED I EXPENDED BAL DUE I
BALANCE DUE FORWARD 1,504.40
1/17/2007 COURI MACARTHUR 29.00 1,533.40
2/26/2007 HAKANSQN ANDERSON ASSOC. INC. 78.66 1,612.06
C I ) SQL L4
me-»- re- d air, L I 11 110
ACCOUNT BALANCE: 41
\ 01 . LOU?
THIS IS A STATEMENT OF YOUR ACCOUNT WITH THE CITY OF OTSEGO.
IF A BALANCE IS DUE, PLEASE REMIT PAYMENT TO THE ADDRESS ABOVE.
CITY OF
OTSEGO Nashua Avenue N.E. • Otsego, M 55330
(763) 441 -4414 • Fax: (763) 441 -8823
ON THE GREAT RIVER ROAD E -mail: cityhall@ci.otsego.mn.us
STATEMENT
ABP, LLC. # 701 -22444
9325 UPLAND LANE NORTH, #300 DATE: 4/2/07
MAPLE GROVE, MN 55369
PROJECT: DAYCARE - S/W EXTENSION
DATE I DESCRIPTION I RECEIVED I EXPENDED BAL DUE I
BALANCE DUE FORWARD 19,128.32
ACCOUNT BALANCE: $19,128.32
THIS IS A STATEMENT OF YOUR ACCOUNT WITH THE CITY OF OTSEGO.
IF A BALANCE IS DUE, PLEASE REMIT PAYMENT TO THE ADDRESS ABOVE.
City of Otsego
Schedule of Assessments to be Collected
2005B G.O. Improvement Bond
Total
Initial 2007 2007
Assessment Roll# Amount Principal Interest Payment
27113 -0 20 Year Assessments $ 432,500 $ 21,625 $ 29,363 $ 50,988
27113 -1 10 Year Assessments 158,500 15,850 10,761 26,611
Total Mississippi Shores 591,000 37,475 40,123 77,598
27213 -0 15 Year Assessments 821,050 54,737 65,032 119,768
27213 -1 15 Year Assessments 771,537 51,436 61,110 112,546
27213 -2 15 Year Assessments 324,450 21,630 25,698 47,328
27213 -3 15 Year Assessments 167,771 11,185 13,288 24,473
27213 -4 15 Year Assessments 90,271 6,018 7,150 13,168
27213 -5 15 Year Assessments 90,271 6,018 7,150 13,168
Total Waterfront East 2,265,350 151,023 179,428 330,451
Total 2005 B Project $2,856,350 $ 188,498 $ 219,551 $ 408,050
FINAL - -- -- -- -- -- - - --
` :5 $3
City of Otsego, Minnesota
General Obligation Improvement Bonds, Series 2005B
Debt Service Schedule Part 1 of 2
Date Principal Coupon Interest Total P +I Fiscal Total
12/06/2005 - - - -
06/01/2006 - - 61,121.88 61,121.88 - �,�p . � -> �4 ) . 1 f d
12/01 /2006 - - 61,121.88 61,121.88 122,243.76 -,,, i'4 40e S 7 «'11
06/01/2007 - - 61,121.88 61,121.88 - # / 31" I/3 7
12/01/2007 200,000.00 3.500% 61,121.88 261,121.88 322,243.76 c'r ''
06/01 /2008 - - 57,621.88 57,621.88 - t S1t K +L
12/01/2008 150,000.00 3.500% 57,621.88 207,621.88 265,243.76
06/01/2009 - - 54,996.88 54,996.88 -
12/012009 150,000.00 3.750% 54,996.88 204,996.88 259,993.76
06/01 /2010 - - 52,184.38 52,184.38 -
12/01/2010 150,000.00 3.750% 52,184.38 202,184.38 254,368.76
06/01/2011 - - 49,371.88 49,371.88 -
12/012011 150,000.00 4.000% 49,371.88 199,371.88 248,743.76
06/01/2012 - - 46,371.88 46,371.88 -
12/01/2012 165,000.00 4.000% 46,371.88 211,371.88 257,743.76
06/01/2013 - - 43,071.88 43,071.88 -
12/01/2013 175,000.00 4.000% 43,071.88 218,071.88 261,143.76
06/01/2014 - - 39,571.88 39,571.88 -
12/012014 175,000.00 4.000% 39,571.88 214,571.88 254,143.76
06/01/2015 - - 36,071.88 36,071.88 -
12/012015 200,000.00 4.000% 36,071.88 236,071.88 272,143.76
06/01/2016 - - 32,071.88 32,071.88 -
12/012016 200,000.00 4.000% 32,071.88 232,071.88 264,143.76
06/01/2017 - - 28,071.88 28,071.88 -
12/012017 200,000.00 4.125% 28,071.88 228,071.88 256,143.76
06/01/2018 - - 23,946.88 23,946.88 -
12 /01/2018 215,000.00 4.250% 23,946.88 238,946.88 262,893.76
06/01/2019 - - 19,378.13 19,378.13 -
12/012019 225,000.00 4.250% 19,378.13 244,378.13 263,756.26
06/01/2020 - - 14,596.88 14,596.88 -
12/012020 225,000.00 4.300% 14,596.88 239,596.88 254,193.76
06 /01/2021 - - 9,759.38 9,759.38 -
12/012021 225,000.00 4.375% 9,759.38 234,759.38 244,518.76
06/01/2022 - - 4,837.50 4,837.50 -
12/012022 40,000.00 4.500% 4,837.50 44,837.50 49,675.00
06 /012023 - - 3,937.50 3,937.50 -
12/01/2023 40,000.00 4.500% 3,937.50 43,937.50 47,875.00
06/01/2024 - - 3,037.50 3,037.50 -
12 /012024 45,000.00 4.500% 3,037.50. 48,037.50 51,075.00
06/01/2025 - - 2,025.00 2,025.00 -
12 /012025 45,000.00 4.500% 2,025.00 47,025.00 49,050.00
06 /012026 - - 1,012.50 1,012.50 -
12/012026 45,000.00 4.500% 1,012.50 46,012.50 47,025.00
Total $3,020,000.00 - $1,288,362.66 $4,308,362.66
J / Da
( 5 G . /14 ) yi ■ a s 1 %/ 41/ ' % 1.. � � J
G.O. Imp Bonds, Series 20 I Issue Summary 1 11/16/2005 1 10:25 AM
Northland Securities
Public Finance Page 2
FINAL
$3,020,000.00
City of Otsego, Minnesota
General Obligation Improvement Bonds, Series 2005B
Total Issue Sources And Uses
Dated 12/01/20051 Delivered 12/06/2005
Mississippi Waterfront Issue
Shores East Summary
Sources Of Funds
Par Amount of Bonds $635,000.00 $2,385,000.00 $3,020,000.00
Accrued Interest from 12/01/2005 to 12/06/2 357.64 1,340.19 1,697.83
Planned Issuer Equity contribution 345,000.00 - 345,000.00
•
Total Sources $980,357.64 $2,386,340.19 $3,366,697.83
Uses Of Funds
Original Issue Discount (OID) 423.10 1,216.20 1,639.30
Total Underwriter's Discount (0.797%) 5,060.24 19,005.76 24,066.00
Costs of Issuance 6,840.96 25,694.04 32,535.00
Gross Bond Insurance Premium 3,401.48 12,698.52 16,100.00
Deposit to Debt Service Fund 357.64 1340 19 1,697.83
Deposit to Capitalized Interest (CIF) Fund 25,392 36 95,153.57 120,545.93
Deposit to Project Construction Fund 935,000.00 2,220,000.00 3,155,000.00
Unused Discount 2,482.82 9,710.95 12,193.77
Rounding Amount 1,399.04 1,520.96 2,920.00
Total Uses $980,357.64 52,386,340.19 $3,366,697.83
•
G.O. imp Bonds, Series 20 1 Issue Summary 1 1111612005 1 10 :25 AM
Northland Securities
Public Finance Page 1
CITY OF OTSEGO
REVIEW OF FINANCIAL POSITION AND RESULTS OF OPERATIONS -
UNAUDITED
YEAR ENDED DECEMBER 31, 2006
General Fund
The City accounts for the general government services provided to the citizens through
the General Fund. These services include public safety, public works, parks and
recreation, and general government. The services are financed primarily through the
general property taxes and state aids. The fund balance is the balance of assets remaining
at year end to finance future year's operations and provide cash flow throughout the year.
The Office of State Auditor has suggested that a fund balance of approximately 35 - 50%
of the subsequent year's budget should be maintained from year to year. This fund
balance amount should be sufficient for cash flow purposes and to absorb unexpected
revenue shortfalls or unexpected expenditures that were not budgeted.
The General Fund expenditures budget for 2006 totaled $2,518,678 and the actual
expenditures totaled $2,627,438, which is a variance of $108,760. A summary of some
of the departments is as follows:
Department Budget Actual
City Council $58,092 $47,931
Administration 330,285 363,746
Elections 22,000 16,283
Assessing 75,000 64,331
Engineer 46,750 71,609
Planner 26,350 39,473
Legal 31,500 33,744
Finance 119,510 81,048
Economic Development 6,500 9,096
General Government Buildings 86,730 89,175
Police Contract 584,000 584,000
Animal Control 3,000 5,967
Street Department 715,357 797,671
Street Lighting 50,000 76,694
Recycling/Clean up Day 13,000 9,665
Park Maintenance 141,835 132,095
Park Commission 31,500 26,560
Transfer for Capital Equipment 169,182 169,182
Page Two
The General Fund revenues budget for 2006 totaled $2,518,678. The actual revenues
exceeded the budget by $87,723. Interest income is allocated to all funds including the
General Fund based on the average cash balance of each throughout the year. The actual
interest allocated to the General Fund totaled $161,334 and the budgeted interest
allocation was $60,000.
The property tax levy is included at 100% of the levy in the budget with no provision for
uncollected taxes. While delinquencies do occur, the City generally receives 99.5 to
99.7% of the total property taxes levied within one year. At December 31, 2006, only
$18,965 from the 2005 property taxes remains uncollected while $99,785 from the 2006
property taxes remains uncollected. This is an increase in the rate of uncollected taxes
from prior years. The actual property tax revenue is almost $42,000 less than budgeted.
I believe the delinquent tax rate is something to take into consideration in the planning of
the 2008 budget. By the time the City starts the 2008 budget process, we may have some
additional information from the County on the property tax collection rates.
The City charges developers for the administrative costs of their projects. This revenue
budget included $90,000 for estimated revenue while the actual revenue was $65,412.
The fund balance at December 31, 2006 totaled $1,006,345 compared to $1,027,382 at
December 31, 2005. This is a decrease of $21,037 in the fund balance over the course of
the year. The 2006 budget had projected no increase in the fund balance. The 2006 fund
balance as a percentage of the 2007 budget is 30.8% and that is less than the 35 — 50 %
criteria established by the Office of the State Auditor.
The primary reason for this decreased percentage in the fund balance is the substantial
increase in the General Fund expenditure budget from 2006 to 2007. The 2007 budget
includes a $747,000 increase in expenditures primarily due to an increased public works
budget ($426,838) and an increased public safety budget ($104,800). To maintain a 35%
fund balance for example, the General Fund would have had to increase (i.e. more
revenues than expenditures) $136,645 during 2006.
Special Revenue Funds
Special Revenue Funds account for specific revenues set aside to finance specific
expenditures. The accounts include monies for fire districts, park development,
equipment and future public improvements. The fire districts include the contractual
payments to neighboring fire departments financed by the property owners of the City.
Park development fees are collected by developers in the City and the park dedication
fees finance the capital costs of building City parks. Future public improvement monies
are set aside from transfers from the General Fund to finance the capital equipment costs
of the public works department.
Page Three
The fund balances of these accounts at year -end (2006 and 2005) are as follows:
Fund Name 12/31/06 12/31/05
Park Development $1,285,399 $2,788,443
Insurance Reserve 58,294 57,400
Fire Districts
Elk River 105,504 423,947
Albertville 117,821 31,223
Rogers 19,899 16,441
Monticello 13,538 4,915
Community Center Fund 899,563 817,511
Capital Equipment 350,382 290,930
The City expended $1,771,654 from the Park Development Fund, $119,216 from the
Capital Equipment Fund and $376,372 for land in the Elk River Fire District in 2006.
Debt Service Funds
Debt Service Funds are used to accumulate the resources from WAC and SAC fees,
special assessments and property taxes for the retirement of outstanding bonds and
interest. The funds include amounts for the payment of the Water and Sewer plant
additions, Street Overlay projects, etc. The following debt service fund and related
outstanding debt information is summarized as follows:
Fund Name 12/31/06 Related Bonds
1999 Street Overlay $ 48,686 $ 265,000
Waterfront West & 85 Street 822,183 3,590,000
Quaday — 2004 111,636 1,400,000
East &West Water and Sewer 7,751,153 28,940,000
Waterfront East & Mississippi Shores 15,744 3,020,000
2006 Street Imp. (Queens and CSAH 42) 290,730 5,985,000
The 1999 Overlay bonds are paid from a combination of property taxes and assessments
against benefiting properties. The City's obligation is estimated at $40,000 per year over
the life of the bond issue.
The Waterfront West & 85 Street bonds are financed by a combination of special
assessments and general property taxes. The property tax levies required to repay these
bonds was scheduled at the time of the bond issue. With each bond the scheduled
property taxes are reviewed to determine that they will be sufficient to retire the future
bond principal and interest payments.
Page Four
Quaday — 2004 is a project for which bonds were sold in 2004. The project has not
started and this debt service fund will require further analysis to determine the source of
funds to be used to pay the bonds and interest. The project will be finalized in 2007 and
will be analyzed for the necessary property taxes to be levied annually beginning in 2008.
The Water and Sewer Debt Service Funds have a total fund balance of $7,751,153 at
year -end. The total bonds outstanding total $28,940,000. The bonds include all issues
related to the construction of the east and west water and wastewater systems. The
outstanding balances of each issue are as follows:
2003B West Water, Wastewater and East
WWTP Phase II $10,245,000
2005A East WWTP Phase III 9,920,000
2006A SE Utilities 8,875,000
Total $28,940,000
It is expected that the future WAC and SAC fees collected from future hookups will
finance the balance of the outstanding debt. The Council has periodically reviewed these
projections and the annual minimum hookups required to finance the bonds that have
been issued. It is also important to note that in recent meetings with PeoplesService, Inc.
they have indicated the WWTP capacity currently used is approximately 16% and 22%
respectively for the two wastewater treatment plants. It would appear that the current
water and sewer infrastructure will provide the needed capacity for the next several years.
Capital Projects Funds
Capital Projects Funds are used to account for the various projects of the City which are
financed primarily from bonds issued. Other Capital Projects are reserve amounts to be
used for future projects. A description of each of the major projects in process and the
status of each is as follows:
The MSA Construction Fund is used to account for projects financed internally by the
City. The source of these monies was MSA Construction monies received in relation to
the 85 street project. The fund balance is $579,849 and nearly $870,000 has been
advanced from this fund to finance the City's share of the Maclver Project. As future
street access fees are collected in the Maclver Avenue area they will be used to finance
additional street projects or the MSA Construction Fund will be repaid. However, the
City's share of this project will total $1,007,615.
Page Five
Watershed Districts are all accounted for as separate funds. There are separate funds
for the North Mississippi, Lefebvre, Hall's Pond, Otsego Creek and South Mississippi
watersheds. The fund balance of each is as follows:
Fund Name 12/31/06 12/31/05
North Mississippi (58,163) (151,014)
Lefebvre 82,382 23,437
Hall's Pond (86,407) (86,407)
Otsego Creek 1,524,270 1,546,700
The Otsego Creek project was started late in 2006 and a significant portion of the monies
that have been accumulated will be expended during 2007.
The Revolving Capital Improvements Fund has a fund balance of $921,163. This
money is available to finance the City's share of capital improvements or to finance
smaller special assessment projects. The accumulation of these resources comes from
many sources. In 2006, this fund was used to finance the I94 /CSAH 37 costs incurred to
date, the costs of the I94 Industrial Park and other smaller projects. In 2007, it is
expected the balance in this fund will be used to finance the Grenins Mississippi sewer
line project and the city's share of the Highway 101 project. The assessments collected
from projects financed with this fund will be credited back to this fund.
The Quaday Improvement Project includes monies from the state MSA Construction
account and bond proceeds. The bonds will be repaid from the collection of special
assessments and other revenue sources and are accounted for in a separate debt service
fund. The project will be closed out in 2007.
The East WWTP Phase III capital projects fund has a balance of $136,765 at year -end.
It appears the remaining balance should be sufficient to finance the balance of the project
costs. The balance of the Gridor contract due as of the year -end is $90,998.
The Kadler, 70 Street and CSAH 19 capital projects fund has a fund balance of
$523,632 from street access fees collected and interest allocated to this fund since 2003.
The Otsego City Campus capital projects fund used to account for the financing of the
public works building. The financing for this project will be provided by the proceeds of
the EDA bonds issued in 2007 and the transfer of monies from the park development and
revolving capital improvements fund. Based on a projection of the total public works
land and building cost will be approximately $5.4M. The capital projects fund should
have about $900,000 remaining after the completion of the project. It is intended this
remaining money will be used to finance all or part of the first three or four years of the
bond principal and interest payments due on the EDA bonds.
Page Six
The Southeast Utilities capital projects fund is the fund accounting for the 2006A bond
($8,875,000 issue) proceeds and the watermain, sewermain and watertower project costs
associated with the improvements in the Southeast part of the City. An analysis needs to
be prepared with the city engineer to determine the bond proceeds are sufficient to
finance all the components of this project. Approximately $4,000,000 remains at year-
end.
Enterprise Funds
The Enterprise Funds include the operation of the Water and Sewer Funds. Both
operations started with the East side development when bonds were issued in 1998 and
1999.
Water Fund
The Water Fund has a cash balance of $515,713 at year -end. The water fund financed the
costs of Well #6 in 2004 which cost $277,634. The financing of the Well #6 project in
2004 reduced the cash balance by $189,000. Water Fund revenues totaled $450,930 in
2006 while meter sales generated $146,430. The total water operating costs for 2006
were $259,330 before depreciation, the cost of meter reading equipment totaled $25,510,
and the cost of new waster meters purchased totaled $101,280. User rates are evaluated
on an annual basis to determine that they are sufficient to cover the cost of operations and
provide reserves to finance future major maintenance and repair issues. Bonds issued to
finance the cost of the water system are intended to be paid by the WAC charge.
People's Service provides these services to the City. In 2007 as some of the operating
costs of maintaining the water system become the responsibility of the City, all applicable
operating costs will be charged to this fund.
Sewer Fund
The Sewer Fund has a cash balance deficit of $403,336 at year -end and that is an
increase in the deficit of $148,471 during 2006. The cash deficit has continued to
increase since the sewer fund operations started. Charges for services totaled $345,405
and the operating expenses totaled $512,245. People's Services also provides these
services to the city. The minimum rate was increased with the March 2007 billing and
the billing will generate nearly $50,000 per month through February 2008.
Overall
The City's cash and investment portfolio totals $23,827,412 at year -end. The City earned
over $1,081,000 in interest on available funds during 2006.
Page Seven
The year -end cash, investment balances and accrued interest receivable recapped by fund
type are as follows:
General $1,057,140
Special Revenue Funds 3,879,347
Debt Service 9,066,732
Capital Projects 8,602,031
Enterprise Funds 112,377
Escrow Funds 1,430,008
Total $24,147,635