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Item 1. 2023 Budget, Tax Levy and Capital Improvement Review Meeting #10 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: November 28, 2022 SUBJECT: Budget Meeting #10 On Monday, Council and staff will be reviewing the 2023 Water, Sanitary Sewer, and Storm Water Utility fund budgets along with their respective 2023‐2032 Capital Improvement Plans. It should be noted that inclusion of a certain item within the Capital Improvement Plan does not commit final approval by the City Council. Rather, it directs City staff to plan towards and gather necessary information for an educated final approval on each respective item. Each individual item is planned, researched, and brought back to the City Council for final approval when the respective purchase is ready to move forward. I have developed an outline of discussion topics below. I have developed an outline of discussion topics below. Utility Operations Overview Utility Operations Manager Neidermeier will be present for this portion of the meeting and will provide an overview of the Utility Department Operations. This will include a review of the budget narrative and PowerPoint, which will introduce some of the impactful items within the 2023 requested budget. Materials for Review and Discussion 1) PowerPoint Slides – Budget Narrative & Capital Improvement Plan Water Utility Fund City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier will review the following in detail: Materials for Review and Discussion 1) Line‐Item Budgets 2) Line‐Item Budgets ‐ Detail 3) Capital Improvement Plan Summary 4) Source & Use Cash Flow Projections City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Sanitary Sewer Utility Fund City Administrator/Finance Director Flaherty along with Utility Operations Manager Neidermeier will review the following in detail: Materials for Review and Discussion 1) Line‐Item Budgets 2) Line‐Item Budgets ‐ Detail 3) Capital Improvement Plan Summary 4) Source & Use Cash Flow Projections Storm Water Utility Fund City Administrator/Finance Director Flaherty will review the following in detail: Materials for Review and Discussion 1) Line‐Item Budgets 2) Source & Use Cash Flow Projections Utility Rates Utility rate increases will be effective in March 2023. This allows staff to fully analyze the 2022 revenues before recommending adoption of the rate increases. Staff will bring forward formal action for Council consideration in February 2023. City staff does not expect that the recommended rate increases discussed at this meeting will materially change. General Fund The City Council was originally presented in August 2022 a draft budget, a balanced budget, with both revenues and expenditures totaling $7,871,939, which was a 7% increase from the prior year. Throughout the budget process, City staff continues to review the expenditure budgets that were presented during earlier budget meetings for any necessary revisions. As of this meeting, the expenditure budget totals $7,976,649, an increase of $104,710 compared to the original requested budget. City Administrator/Finance Director Flaherty will provide additional review of the changes during this meeting to gather feedback and direction from the City Council. Materials for Review and Discussion 1) Budget Changes Tracking Property Tax Levy The City Council approved a preliminary property tax levy of $9,330,023 in September. There have been no changes to the total property tax levy since that approval. City staff will provide additional review of the 2023 property tax levy at this meeting. Materials for Review and Discussion 1) Tax Levy Calculations City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163 Fund Balance Policy – Calculation of Transfer The City’s fund balance policy outlines that the ending fund balance in the General Fund should be 45% of the subsequent years budget. The policy further outlines that any balance more than the defined 45% minimum, can be transferred to a capital reserve fund at the Council’s discretion. Materials for Review and Discussion 1) Calculation of Fund Balance Policy Transfer December 12, 2022 Meeting The City will be holding the required Truth‐in‐Taxation presentation during the Council meeting. This meeting is an opportunity for the public to ask questions regarding the budget and tax levy. After the presentation and public input opportunity, the City Council will need to approve several items including the final property tax levy, operating budgets, and the capital improvement plan. There are currently no additional meetings scheduled for review of the property tax levy, budgets, or capital improvement plan. Staff would be seeking direction from the City Council on whether any additional meetings are necessary, or if the City Council concurs with what has been presented and reviewed thus far. 11/22/2022 1 2023 Utility Budget Narrative Kurt Neidermeier, Utility Manager November 28, 2022 2 Water & Wastewater Operations •Process monitoring and control •Sampling, testing and interpretation •Equipment operation •Records & Communication •Regulatory Compliance Water & Wastewater Maintenance •Preventative •Corrective •Reponses •Documentation Customer Services •Water Quality •Metering •Curb Stops •Locates Utility Department Overview 1 2 11/22/2022 2 Wastewater Treatment 4 Before After 3 4 11/22/2022 3 5 6 5 6 11/22/2022 4 7 Biosolids Building 8 Class A Exceptional Quality Biosolids (can use in garden) 2021 30 Tons per week 2022 40 Tons per Week 2023 50 Tons per Week 7 8 11/22/2022 5 9 Tanker Truck Material Haul Lift Station Cleaning Manhole Pumping Tank Cleaning Tandem Truck Biosolids Hauling Landfill or Field 10 Manholes ~ 1820 Sanitary Sewer ~ 74 Miles Forcemain ~ 27 miles Collection System 9 10 11/22/2022 6 11 Sanitary Sewer Cleaning 12 11 12 11/22/2022 7 13 Jet Vac Sanitary Sewer Cleaning Lift Station Cleaning Storm Sewer Cleaning Hydro excavating Tank Cleaning Crane Truck Pump pulls Confined Space Heavy Equipment Repairs Storage Access 14 24 Submersible Pumps (5 weighing over 2000 pounds) 10 Lift Stations 13 14 11/22/2022 8 15 Confined Space Entry Water 16 15 16 11/22/2022 9 17 Water Appropriation Allotment = 800 Million gallons (DNR) Hydrants ~ 1,100 Watermain ~ 100 Miles Wells – 9 Valves – 2,300 Max Production Day ~ 6.2 Million Gallons 18 17 18 11/22/2022 10 Strategic Plan Alignment 20 Positioning for Growth Evaluate Capacities Social Community with diverse housing, service opportunities and employment opportunities Committed to delivery of quality emergency services responsive to our community needs. Lift Station Comp Plan Biosolids Building Completion Water Tower 4 Water Appropriation increase complete – 800 Million Gallons per year Well 10 in process – Wells 11+ considerations East West Connection – 2023 West WWTF Capacity Expansion Empowering the Organization Increased Communications Training Opportunities Advance Knowledge & Licensure Staffing – 10+ year Vision Forepersons Vehicle – 10+ year Vision Cross Training Strategic Plan Alignment 19 20 11/22/2022 11 Utility Team REACH FOR THE STARS 22 Operations Team 2022 Austin 2022 Renee 2021 Andy 2018 Robert 2016 Kurt 2013 Nick 2015 Seth 2013 Reese 2015 21 22 11/22/2022 12 23 Specialization & focus progression 2026 20232024 202420292027 20282029 Operations Team Licensure Wastewater •Class A = 1•Class B = 2•Class C = 3•Class D = 2 Type IV •Biosolids = 3 Water•Class B = 4•Class C = 2•Class D = 2 23 24 11/22/2022 13 Operator Hire – (Advertise March, Hire May, June start) Construction – Wells, West WWTF, East West Connection, PSI Control Stations Water Treatment progression Customer Services – Water Quality, Emergency Responses, Locates, Curb Stops Meters – Reads, Inspections, Replacement Material Transport – West TWAS & Class A EQ Infrastructure – Added Assets Cross Training / Legacy Operators and Facility focus Seasonal / Apprenticeship WETT SCTC student Other 2023 Staffing STRIVE FOR GREATNESS 25 26 11/22/2022 14 Regulatory Compliance Customer Satisfaction Proactive Infrastructure Expansion Team Elevation & Succession Technology Advancements Minimize Risk & Improve Resilience Maintain Competitive Customer Rates Non Capital Meter Replacements – 385 residential Rate Evaluation – May - August Staffing - Operator Addition Apprenticeship/Seasonals Capital Vehicle replacement & addition Test W ells & Wells 10, 11 East West Interconnect Booster Station Improvements West WWTF Expansion Water Treatment Progression Budget Highlights 27 28 11/22/2022 15 Thank you 29 11/22/2022 1 2023 Utility Capital Improvement Planning Kurt Neidermeier, Utility Manager November 28, 2022 Wastewater Treatment 1 2 11/22/2022 2 3 4 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total RECs current 7,246 7,646 8,046 8,446 8,846 9,246 9,646 10,046 10,446 10,846 Total RECs platted 8,206 8,606 9,006 9,406 9,806 10,206 10,606 11,006 11,406 11,806 RECS CURRENT SEPT 2022 = 2993 3193 3393 3593 3793 3993 4193 4393 4593 4793 4993 RECS PLATTED SEPT 2022 = 3403 3603 3803 4003 4203 4403 4603 4803 5003 5203 5403 West WWTF Expansion ‐ WL1 (8,057 REC Cap)$22,000,000 $9,000,000 $200,000 West WWTF Solids Improvement (In REC Review) West WWTF Expansion ‐ WL2 (15,476 REC Cap) West WWTF Access Road $500,000 $200,000 $1,200,000 WEST WWTF 3 4 11/22/2022 3 5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total RECs current 7,246 7,646 8,046 8,446 8,846 9,246 9,646 10,046 10,446 10,846 Total RECs platted 8,206 8,606 9,006 9,406 9,806 10,206 10,606 11,006 11,406 11,806 Lift Station Addition ‐ Comp Plan Refer $200,000 $1,700,000 $200,000 $2,600,000 Lift Station Equip & Reconditioning (590 R&R)$60,000 $75,000 $75,000 $475,000 $123,000 $135,000 $115,000 $750,000 $100,000 $135,000 LIFT STATIONS Water 6 5 6 11/22/2022 4 Water Tower Reconditioning $27,000 $1,750,000 Water Storage Property Water Storage Project WATER STORAGE 2023 2024 2025 2026 2027 2028 2029 East West Connection Phase 1 $3,029,134 Booster Station $475,000 East West Connection Phase 2 $400,000 $2,000,000 $100,000 SYSTEM CONNECTION 2023 2024 2025 2026 2027 2028 2029 Well 10 ‐ Well House 4 $1,093,455 Well 11 ‐ Well House 3 (align w/WH3 Treatment)$150,000 $950,000 $400,000 Well 12 ‐ Well House 2 Well 13‐16 test wells (Phase 1 Central Wellfield)$380,000 Well 17‐18 test wells (Phase 2 Central Wellfield) Well & Equip Inpect w Recond (Water Ref tab) (590 ‐ R&R)$132,000 $125,000 $150,000 $150,000 $170,000 $120,000 $30,000 Water Supply Plan & WHP Plan updates (302 ‐ ENG)$17,000 $27,000 $10,000 WELLS 7 8 11/22/2022 5 2023 2024 2025 2026 2027 2028 2029 Thank you 9 10 City of OtsegoEnterprise Fund Budget ‐ 2023Department RequestsWater UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2020 2021 2022 2022 2023 CommentsRevenues601 49400 37150 WATER SALES 1,484,822$ 2,142,158$ 2,112,079$ 1,661,423$ 2,016,135$ Based on Utility Rate Study601 49400 37155 WATER SALES ‐ IRRIGATION 220,266 425,912 455,537 189,000 387,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)601 49400 37160 WATER NSF 120 60 330 ‐ ‐ 601 49400 31900 PENALTIES AND INTEREST 19,757 43,447 48,874 38,000 48,000 Estimated ‐ Represents Average of Actuals for 2021‐2022 (YTD)TOTAL ‐ OPERATING1,724,966 2,611,577 2,616,820 1,888,423 2,451,135 601 49400 33100 FEDERAL GRANTS AND AIDS 524 ‐ ‐ ‐ ‐ 601 49400 33422 OTHER STATE AID GRANTS 10,000 ‐ 10,000 ‐ ‐ 601 49400 34109 OTHER ADMINISTRATIVE CHARGES 9,675 8,675 12,675 ‐ 10,000 601 49400 34302 WATER METERS 149,431 151,886 122,851 93,177 118,104 296 Meters at $399 (Cost of $369 + 1 HR Admin Time $30)601 49400 36100 SPECIAL ASSESSMENTS 89,593 57,290 28,497 ‐ ‐ 601 49400 36210 INTEREST EARNINGS 91,440 63,879 ‐ ‐ ‐ 601 49400 36213 NET CHANGE IN INVESTMENT FMV 74,405 (107,170) ‐ ‐ ‐ 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS 602,128 1,753,646 ‐ ‐ ‐ 601 49400 37165 WATERTOWER RENTALS‐ANTENNAS 80,068 83,513 87,215 89,853 93,827 Tower #1 (Sprint/Verizon) and Tower #3 (Nextera)601 49400 37170 DNR FEES FOR STATE39,823 43,896 47,492 49,572 51,516 Estimated 5,300 Accounts at $9.72 (Actual is 5,035 as of 10/25/2022)601 49400 38990 OTHER MISCELLANEOUS1,721 ‐ ‐ ‐ ‐ 601 49400 38991 REFUNDS & REIMBURSEMENTS3,301 25,949 11,968 ‐ 10,000 601 49400 39250 TRANSFER IN ‐ CAPITAL ASSETS143,529 871 ‐ ‐ ‐ 601 49400 39300 PROCEEDS ‐ BONDS ISSUED‐ ‐ ‐ ‐ 5,000,000 TOTAL ‐ NON OPERATING1,295,637 2,082,434 320,698 232,602 5,283,447 TOTAL ‐ REVENUES3,020,603 4,694,011 2,937,518 2,121,025 7,734,582 Expenses601 49400 101 FULL‐TIME EMPLOYEES REGULAR95,729 111,068 105,391 135,278 152,149 Includes FT Hire (Based on May 2023 Hiring Timeline)601 49400 102 WAGES ‐ FT OVERTIME4,767 7,572 5,738 5,000 5,000 601 49400 104 WAGES ‐ PT EMPLOYEES799 6,216 153 4,550 4,680 Includes 1 Seasonal Staff (26 Week Position @ 40 Hours)601 49400 121 PERA7,402 8,757 8,334 10,521 11,786 601 49400 122 FICA AND MEDICARE7,226 9,078 8,163 11,079 12,380 601 49400 130 OTHER EMPLOYER PAID INS13,679 14,133 15,765 20,231 25,564 601 49400 150 WORKERS COMPENSATION4,183 4,963 7,642 5,215 5,263 Based on Actual 2022‐2023 Premiums + 3% Inflation601 49400 191 GERF PENSION EXPENSE4,748 3,938 ‐ ‐ ‐ TOTAL ‐ PERSONAL SERVICES138,532 165,725 151,186 191,874 216,822 601 49400 201 OFFICE SUPPLIES AND EXPENSES5,821 8,353 5,508 6,000 7,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)601 49400 202 FUEL2,061 3,408 ‐ 3,348 6,310 Allocated 25% of 5,609 Gallons (2021 Actual) at $4.50 (Same Rate as Fleet)601 49400 206 POSTAGE10,383 9,219 7,007 15,300 15,900 Allocated 50% of Monthly Bill Mailings (5,300 Accounts at $0.50)601 49400 210 OPERATING SUPPLIES2,892 5,826 2,058 7,000 7,000 Operational & Preventative Maintenance Items601 49400 216 CHEMICAL SUPPLIES100,154 141,419 154,216 124,200 142,800 See Detailed Attachment601 49400 220 REPAIRS/MAINT SUPPLIES14,814 4,835 22,608 15,000 16,500 See Detailed Attachment601 49400 225 UNIFORMS/CLOTHING ALLOWANCE1,461 2,219 1,329 2,350 3,025 See Detailed Attachment601 49400 227 SAFETY SUPPLIES455 592 50 1,800 1,500 601 49400 228 UTILITY SYSTEM SUPPLIES102,012 382,834 381,643 348,870 304,000 See Detailed Attachment601 49400 240 SMALL TOOLS/EQUIPMENT3,748 16,604 1,057 5,000 7,500 601 49400 298 W/S FLEET EXPENSES4,578 2,570 ‐ 5,000 5,000 TOTAL ‐ SUPPLIES248,378 577,880 575,474 533,868 516,535 49400 ‐ Water Utility FundAccount NumberY:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUTWater FundWATER UTILITY FUND - BUDGET PACKET - 1 City of OtsegoEnterprise Fund Budget ‐ 2023Department RequestsWater UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2020 2021 2022 2022 2023 Comments49400 ‐ Water Utility FundAccount Number601 49400 301 LEGAL SERVICES6,459 4,915 2,132 2,000 5,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)601 49400 302 ENGINEERING FEES262,206 122,231 138,363 28,200 39,200 See Detailed Attachment601 49400 303 PLANNING FEES1,413 175 725 500 750 601 49400 306 PERMITS & FEES53,850 60,772 37,022 65,000 73,000 See Detailed Attachment601 49400 309 SOFTWARE & SUPPORT‐ 1,700 ‐ ‐ ‐ 601 49400 315 GIS SERVICES412 300 245 3,000 1,000 601 49400 320 TELEPHONE3,712 4,334 7,054 7,495 13,900 See Detailed Attachment601 49400 321 MILEAGE/TRAVEL137 ‐ 188 400 400 601 49400 322 UTILITIES98,075 135,904 122,291 103,000 125,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)601 49400 350 PRINT & PUBLISHING232 94 1,030 300 300 Statutory Publish Requirements (Budget & Financial Statements)601 49400 355 DUES & MEMBERSHIPS549 424 425 365 365 See Detailed Attachment601 49400 360 EDUCATION/TRAINING/CONFERENCES1,179 1,633 2,072 5,100 5,350 See Detailed Attachment601 49400 361 LIABILITY AND PROPERTY INSURAN10,514 11,602 29,265 13,022 21,167 Based on Actual 2022‐2023 Premiums + 5% Inflation601 49400 390 CONTRACTED SERVICES107,285 105,348 107,531 153,400 178,400 See Detailed Attachment601 49400 402 REPAIRS/MAINT BUILDINGS‐ ‐ 29,379 40,000 10,000 601 49400 410 RENTALS2,016 3,578 1,099 2,465 2,465 Folding & Envelope Stuffing Machine ‐ Lease Payments & R/M Allowance601 49400 437 BANK SERVICE CHARGES10,011 13,751 12,916 11,550 13,650 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD) + 5%601 49400 441 LICENSES, TAXES & FEES‐ 100 1,094 ‐ ‐ TOTAL ‐ SERVICES & OTHER CHARGES558,049 466,860 492,830 435,797 489,947 601 49400 500 CAPITAL OUTLAY (GENERAL)1,739 ‐ 224 ‐ 1,000 IT Equipment ‐ Computer Additions and Replacements601 49400 501 EQUIPMENT‐ 3,941 299 ‐ 5,000 Lab Equipment (25% Allocation)601 49400 510 LAND ACQUISITIONS/EASEMENTS57,522 ‐ 36,276 ‐ ‐ 601 49400 525 BUILDING IMPROVEMENTS‐ ‐ 12,563 30,000 15,000 See Detailed Attachment601 49400 530 IMPROVEMENTS OTHER THAN BLDG2,363,797 3,478,225 618,128 2,775,375 5,114,777 See Detailed Attachment601 49400 550 MOTOR VEHICLES10,892 8,872 ‐ ‐ 103,500 See Detailed Attachment601 49400 590 REHABILITATION & REPLACEMENT‐ ‐ ‐ 50,000 50,000 Ongoing investment for costs of R&R ‐ Water Master Plan601 49400 599 CAPITALIZED ASSET OFFSET(2,718,008) (3,550,653) ‐ ‐ ‐ TOTAL ‐ CAPITAL OUTLAY(284,059) (59,615) 667,489 2,855,375 5,289,277 601 49400 420 DEPRECIATION628,728 703,828 ‐ 875,778 1,067,049 Based on Utility Rate Study601 49400 601 BOND PRINCIPAL‐ ‐ ‐ ‐ 215,000 Debt Service ‐ 2021A601 49400 602 BOND INTEREST‐ 23,448 78,159 78,159 88,130 Debt Service ‐ 2021A601 49400 620 FISCAL AGENT FEES‐ 92,521 495 450 500 601 49400 650 DEBT SERVICE AMORTIZATION'S‐ ‐ ‐ ‐ (14,772) Amortization of Bond Premium601 49400 720 OPERATING TRANSFERS110,786 111,535 73,375 73,375 117,414 Administrative Contribution to General Fund + Fleet Replacement ReserveTOTAL ‐ OTHER739,513 931,332 152,029 1,027,762 1,473,322 TOTAL ‐ EXPENSES1,400,413 2,082,182 2,039,009 5,044,676 7,985,903 NET INCOME / (LOSS)1,620,190$ 2,611,829$ 898,509$ (2,923,651)$ (251,321)$ Y:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUTWater FundWATER UTILITY FUND - BUDGET PACKET - 2 City of OtsegoEnterprise Fund Budget ‐ 2023Detail of Line Item RequestsWater UtilityRequestedBudget Budget2022 2023 Item Detail / Description Comment8,505$ 9,781$ Fluoride102,060 117,369 Polyphosphate13,608 15,649 Chlorine27 1 Rounding124,200 142,800 15,000$ 16,500$ Corrective Maintenance Items (Ex. Chemical Pumps, Valves, Hydrant Parts, Repairs)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 15,000 16,500 1,600$ 1,900$ Clothing Allowance = $400 x 8 Operators & $600 x 1 New Hire (50% Allocation)600 675 Boot Allowance = $150 x 9 Operators (50% Allocation)75 225 Clothing Allowance = $150 x 3 Seasonal Operators (50% Allocation)75 225 Boot Allowance = $150 x 3 Seasonal Operators (50% Allocation)2,350 3,025 348,870$ ‐$ Prior Year Total ‐ Lump Sum‐ 147,852 New Residential Meters & Horns‐ 132,530 Replacement Meters ‐ 5/8" Residential Meters‐ 2,250 Replacement Meters ‐ 1" Meters‐ 14,400 Replacement Meters ‐ 1.50" Meters‐ 6,900 Replacement Meters ‐ 2" Meters‐ 68 Rounding‐ ‐ 348,870 304,000 20,000$ 20,000$ General Water Engineering (Regulatory, Distribution System, Consultation)5,000 16,000 AE2S ‐ Instrumentation Services & Staffing Plan Tech Memo3,200 ‐ KLM ‐ Water Tower #2 Warranty Inspection Services‐ 3,200 KLM ‐ Water Tower #1 Inspection Services‐ ‐ 28,200 39,200 49,572$ 51,516$ Minnesota Department of Health Testing ($9.72 at 5,300 Accounts)15,000 21,000 DNR ‐ Water Usage400 400 Tier II Permits (4 @ $100)28 84 Rounding‐ ‐ 65,000 73,000 1,080$ 1,715$ Employee Cell Phones ($45 x 9) + Replacement Phones ($2,000) ‐ Allocated 25%960 960 CenturyLink Alarm Phone Lines at Facilities ($80 Per Month)780 780 Answering Service ($65 Monthly)420 420 Land Line Telephone Service ($35 Monthly)240 240 Tablet's Data Plan ($40 x 2) ‐ Allocated 25%175 1,080 WIN‐911 Remote Monitoring Mobile Application ‐ Allocated 50%3,840 8,640 Charter Communications ‐ Internet Services for Security Systems ‐ (~$90 Per Month)‐ 65 Rounding7,495 13,900 601‐49400‐306PERMITS & FEESR/M SUPPLIES601‐49400‐225UNIFORMS/CLOTHING ALLOWANCE601‐49400‐302ENGINEERING FEES601‐49400‐228A meter order was placed in June of 2022 and is expected to arrive in the spring of 2023.UTILITY SYSTEM SUPPLIESAccount No. & Description601‐49400‐216Supply inflation 15‐30%.CHEMICAL SUPPLIES601‐49400‐320TELEPHONE601‐49400‐220Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically, or now accounted for in Object #590 as Replacement and Rehabilitation costs.Y:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUT601-DetailWATER UTILITY FUND - BUDGET PACKET - 3 City of OtsegoEnterprise Fund Budget ‐ 2023Detail of Line Item RequestsWater UtilityRequestedBudget Budget2022 2023 Item Detail / Description CommentAccount No. & Description300$ 300$ Minnesota Rural Water Association65 65 Suburban Utility Superintendent's Association ‐ Allocated 50%‐ ‐ 365 365 800$ 700$ Citywide Safety Program Training2,800 3,150 Operator Certification Licensing and Training ($350 x 9 Operators)1,500 1,500 Leadership & Supervisory Training‐ ‐ 5,100 5,350 52,032$ 54,983$ Locates (Hakanson) ‐ Based on 2020 ‐ 2022 YTD Monthly Average + 5%3,628 3,868 Locates (Gopher One) ‐ Based on 2020 ‐ 2022 YTD Monthly Average + 5%12,000 15,000 Electrical Maintenance3,500 3,500 Neptune Service Agreement4,290 5,220 Aveva WonderWare Customer Support Agreement ‐ 50% Allocation750 750 OpWorks Software Agreement ‐ 50% Allocation5,000 3,840 W/H Security Monitoring @ $40 per month/per site (4 Water Towers + 4 Well Houses)2,000 3,600 Lab Testing5,000 5,000 Equipment Inspections & Testing ‐ Generator/ Meters/RPZ15,000 15,000 Distribution Repairs / Watermain Leaks1,200 1,500 Mechanical ‐ Heating & Air Conditioning1,800 1,800 VFD Inspections & Preventative Maintenance400 400 800Mhz Infrastructure fees ($100 per radio) Wright County41,250 30,800 Water Meter Change‐Out Project (385 Meters at $80 per meter)5,500 7,500 Fire Hydrant Painting (100 Hydrants)‐ 8,000 Water Tower Exterior Cleaning ‐ Water Tower 1 & 3‐ 1,080 Win911 Subscription ‐ 3yr renewal (2160) ‐ 50% Allocation‐ 16,500 Rate Study (50% Allocation)51 59 Rounding Contingency + Inflationary Factor‐ ‐ 153,400 178,400 15,000$ ‐$ Water Tower #1 ‐ Interior Building15,000 ‐ Well House #3 ‐ Well Meter Replacement‐ 15,000 Water Tower Security Improvements‐ ‐ 30,000 15,000 2,000,000$ ‐$ Water Tower #4 ‐ CIP Amount85,000 ‐ Water Tower #4 ‐ Engineering (KLM + Hakanson Anderson)220,000 ‐ Well Field Hydrogeologic Study200,000 3,504,134 East & West Water System Connection and Booster Station Improvements60,000 132,000 Annual Well Equipment Inspection and Reconditioning (2023 is for Wells #5 and #6)130,000 1,093,455 Well #1080,375 40,188 CSAH 38 & CSAH 19 Local Share‐ 150,000 Well #11 ‐ Project Initiation, Test Well & Project Design‐ 70,000 Water Treatment at Wellhouse 4 ‐ Pilot Testing‐ 125,000 Central Wellfield ‐ Project Initiation, Phasing Plan & Site Selection‐ ‐ 2,775,375 5,114,777 ‐$ 69,000$ Portable Generator Trailer (50% Allocation)‐ 14,500 3/4 Ton Extended Cab Pickup + Plow Equipment (25% Allocation)‐ 20,000 1 Ton Extended Cab Utility Body Pickup + Tool Box (25% Allocation)‐ ‐ ‐ 103,500 601‐49400‐550MOTOR VEHICLES601‐49400‐530IMPROVEMENTS OTHER THAN BUILDINGS601‐49400‐355DUES & MEMBERSHIPS601‐49400‐525BUILDING IMPROVEMENTSCONTRACTED SERVICES601‐49400‐390601‐49400‐360EDUCATION / TRAINING / CONFERENCEY:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUT601-DetailWATER UTILITY FUND - BUDGET PACKET - 4 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2023 2032thruTotal2023 2024 2025 2026 2027Source2028 2029 2030 2031 2032 #601 - Water Utility40,18840,188CSAH 38 & CSAH 19 - Local ShareCSAH-2020-0414,50014,5003/4 Ton Extended Cab PickupFLEET-23-0820,00020,0001 Ton Utility Body TruckFLEET-23-0969,00069,000Portable Generator TrailerFLEET-23-101,093,4551,093,455Well #10 - New Municipal WellWATER-23-013,504,1343,504,134East & West Connection - Phase 1WATER-23-0240,00040,000Well #5 ImprovementsWATER-23-0392,00092,000Well #6 ImprovementsWATER-23-04125,000125,000Central Wellfield - Project Phasing & LocatingWATER-23-051,500,000150,000 950,000 400,000Well #11 - New Municipal WellWATER-24-011,074,000142,000 177,000 160,000 170,000 120,000 30,000 80,000 80,000115,000Annual Well & Equipment Inspection and ReconditionWATER-24-324,250,00070,000 500,000 3,200,000 480,000Water Treatment - Well House #4WATER-25-014,250,00070,000 500,000 3,200,000 480,000Water Treatment - Well House #3WATER-26-015,380,000380,000 500,000 4,000,000 500,000Central Wellfield - Well Drilling & PipingWATER-26-022,500,000400,000 2,000,000 100,000East & West Connection - Phase 2WATER-27-0121,100,000100,000 1,000,000 15,000,000 5,000,000Central Wellfield - Building ConstructionWATER-27-021,777,00027,000 1,750,000Water Tower #3 ReconditioningWATER-28-01601 - Water Utility Total46,829,2775,218,277 2,042,000 4,877,000 9,240,000 18,177,000 6,970,000 30,000 80,000 80,000 115,0005,218,277 2,042,000 4,877,000 9,240,000 18,177,00046,829,277GRAND TOTAL6,970,000 30,000 80,000 80,000 115,000WATER UTILITY FUND - BUDGET PACKET - 5 City of OtsegoWater Utility FundCash Flow SummaryRevised: November 22, 2022Rate Increase6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Based on Ehlers Utility Rate StudyNew Connections296 296 260 260 260 260 260 260 260 260 260 2023 = 7 Year Avg. / Remaining = 10 Year Avg.Forecast Budget20222023202420252026202720282029203020312032CommentsWater FundWater Sales2,140,740$ 2,016,135$ 2,154,129$ 2,302,842$ 2,457,911$ 2,624,213$ 2,802,580$ 2,993,539$ 3,170,822$ 3,361,071$ 3,562,736$ 2022 Forecasted / 2023‐2030 Rate Study / 2031‐2032 = 6% Water Sales ‐ Irrigation455,537 387,000 387,000 387,000 387,000 387,000 387,000 387,000 387,000 387,000 387,000 2023 Budget ‐ Then StagnantPenalties and Interest48,874 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 2023 Budget ‐ Then StagnantMeter Sales122,851 118,104 118,104 118,104 118,104 118,104 118,104 118,104 118,104 118,104 118,104 2023 Budget ‐ Then StagnantAntenna Rentals89,853 93,827 93,827 93,827 93,827 93,827 93,827 93,827 93,827 93,827 93,827 2023 Budget ‐ Then StagnantMiscellaneous49,572 71,516 71,516 71,516 71,516 71,516 71,516 71,516 71,516 71,516 71,516 DNR Testing Fees ‐ 2023 Budget ‐ Then StagnantBond Proceeds‐ 5,000,000 ‐ 4,250,000 9,630,000 23,600,000 ‐ ‐ ‐ ‐ ‐ Projected Bond IssuancesWAC FundConnection Fees1,555,191 842,688 773,640 781,200 789,120 797,040 804,960 812,880 821,160 829,440 837,720 Assumes Rate Adjustments (1% Annually)Special Assessments62,439 99,962 87,137 84,723 68,920 65,738 32,754 31,502 ‐ ‐ ‐ Current Levied WAC AssessmentsTotal4,525,057 8,677,232 3,733,353 8,137,212 13,664,398 27,805,438 4,358,741 4,556,368 4,710,429 4,908,958 5,118,903 ExpensesPersonal Servcies191,874 216,822 263,327 291,226 319,963 349,562 380,049 431,450 464,394 478,326 512,676 2023 Budget ‐ Additions Per Staff Plan ‐ Then 3% InflationSupplies533,868 516,535 526,866 537,403 548,151 559,114 570,296 581,702 593,336 605,203 617,307 2023 Budget ‐ Then 2% InflationInsurance13,022 21,167 21,590 22,022 22,463 22,912 23,370 23,837 24,314 24,801 25,297 2023 Budget ‐ Then 2% InflationUtilities103,000 125,000 128,750 132,613 136,591 140,689 144,909 149,257 153,734 158,346 163,097 2023 Budget ‐ Then 3% InflationServices & Other Charges319,775 343,780 354,093 364,716 375,658 386,927 398,535 410,491 422,806 435,490 448,555 2023 Budget ‐ Then 3% InflationDepreciation875,778 1,067,049 1,083,070 1,106,414 1,154,249 1,171,539 1,623,514 2,030,152 2,227,197 2,294,013 2,362,833 Based on Ehlers Utility Rate StudyDebt Service ‐ Principal835,200 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Interest287,065 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Fiscal Agent Fees851 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsCapital Outlay13,086 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsCapital Outlay (General)‐ 21,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2023 BudgetCapital Outlay (Fleet Additions)‐ 103,500 20,500 24,500 40,000 ‐ 22,500 ‐ 31,000 ‐ ‐ 2023‐2032 CIP (ALLOCATED 25%)Capital Outlay (CIP)2,775,375 5,114,777 2,042,000 4,877,000 9,240,000 18,177,000 6,970,000 30,000 80,000 80,000 115,000 2023‐2032 CIPCapital Outlay (Distribution)‐ 168,538 154,728 156,240 157,824 159,408 160,992 162,576 164,232 165,888 167,544 Assumed at 20% of WAC RevenueCapital Outlay (R & R Plan)‐ 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Based on Master PlanDebt Service (2019A)‐ 50,760 270,360 556,776 555,984 ‐ ‐ ‐ ‐ ‐ ‐ Principal & Interest per Amortization ScheduleDebt Service (2021A)‐ 303,130 331,155 333,505 330,630 332,530 334,130 330,505 334,655 336,630 333,504 Principal & Interest per Amortization ScheduleDebt Service (2021B)‐ 1,002,060 576,720 206,370 206,010 ‐ ‐ ‐ ‐ ‐ ‐ Principal & Interest per Amortization ScheduleDebt Service (Projected)‐ ‐ 384,381 384,381 711,104 1,451,422 3,265,699 3,265,699 3,265,699 3,265,699 3,265,699 Estimated Debt Service on Projected Bond IssuesTransfers Out ‐ General Fund73,375 80,150 82,555 85,031 87,582 90,210 92,916 95,703 98,574 101,532 104,578 General Fund ‐ Administrative Functions (Inflates 3%)Transfers Out ‐ Fleet Replacements‐ 37,264 44,142 49,213 52,253 64,077 67,398 71,938 71,938 76,280 77,072 2023‐2032 CIP (ALLOCATED 25%)Total 6,022,269 9,221,532 6,334,237 9,177,410 13,988,462 22,955,390 14,104,309 7,633,311 7,981,880 8,072,207 8,243,161 Cash Balance ‐ Beginning11,515,562 10,894,128 11,416,877 9,899,064 9,965,279 10,795,465 16,817,052 8,694,998 7,648,207 6,603,953 5,734,717 Balance Sheet EffectsRevenues 4,525,057 8,677,232 3,733,353 8,137,212 13,664,398 27,805,438 4,358,741 4,556,368 4,710,429 4,908,958 5,118,903 Expenditures(6,022,269) (9,221,532) (6,334,237) (9,177,410) (13,988,462) (22,955,390) (14,104,309) (7,633,311) (7,981,880) (8,072,207) (8,243,161) Noncash ‐ Depreciation875,778 1,067,049 1,083,070 1,106,414 1,154,249 1,171,539 1,623,514 2,030,152 2,227,197 2,294,013 2,362,833 Cash Balance ‐ Ending10,894,128$ 11,416,877$ 9,899,064$ 9,965,279$ 10,795,465$ 16,817,052$ 8,694,998$ 7,648,207$ 6,603,953$ 5,734,717$ 4,973,292$ Cash Balance ReserveOperating (100% of Next Year)2,370,503$ 2,460,251$ 2,539,425$ 2,644,657$ 2,720,953$ 3,233,590$ 3,722,593$ 3,984,356$ 4,097,710$ 4,234,342$ Debt Service (100% of Next Year)1,355,950 1,562,616 1,481,032 1,803,728 1,783,952 3,599,829 3,596,204 3,600,354 3,602,329 3,599,203 Total Cash Reserve Recommendation3,726,453 4,022,867 4,020,457 4,448,385 4,504,905 6,833,419 7,318,797 7,584,710 7,700,039 7,833,545 Percentage of Cash Reserve on Hand292.35% 283.80% 246.22% 224.02% 239.64% 246.10% 118.80% 100.84%85.77% 73.21%ProjectedY:\Budget\2023\Cash Flows\Utility FundsCombined Water (601+360)WATER UTILITY FUND - BUDGET PACKET - 6 City of OtsegoDebt Service Fund Budget ‐ 2023Fund 360 ‐ G.O. Revenue Refunding Bonds, Series 2019A & Series 2021BWater & Sanitary Sewer Infrastructure + BuildingsRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Object Account Description 2020 2021 2022 2022 2023Revenues360 47000 34406 WATER AVAILABILITY + CONNECTION CHARGES 1,634,683$ 1,665,297$ 1,555,191$ 727,054$ 842,688$ 360 47000 36100 SPECIAL ASSESSMENTS 222,960 7,961 48,439 62,419 99,962 360 47000 36210 INVESTMENT EARNINGS 58,128 54,370 ‐ ‐ ‐ 360 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT 47,299 (91,218) ‐ ‐ ‐ 360 47000 39200 TRANSFERS IN 48,222 50,760 ‐ ‐ ‐ TOTAL 2,011,292 1,687,170 1,603,631 789,473 942,650 Expenditures360 47000 601 PRINCIPAL ‐ ‐ 835,200 835,200 910,800 360 47000 602 INTEREST 208,580 210,540 208,906 208,906 142,020 360 47000 620 FISCAL AGENT FEE'S 609 24,329 356 750 750 360 47000 650 DEBT SERVICE AMORTIZATION'S (55,299) (55,300) ‐ (55,300) (101,632) TOTAL 153,890 179,569 1,044,462 989,556 951,938 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES1,857,402$ 1,507,601$ 559,168$ (200,083)$ (9,288)$ Fund 360 ‐ G.O. Revenue Refunding Bonds, Series 2019A & 2021BAccount NumberWATER UTILITY FUND - BUDGET PACKET - 7 City of OtsegoWater Access Charge FundCash Flow SummaryRevised: November 22, 2022Rate Increase9.22% 5.68% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Availability Charge2,014.00$ 2,128.00$ 2,149.00$ 2,170.00$ 2,192.00$ 2,214.00$ 2,236.00$ 2,258.00$ 2,281.00$ 2,304.00$ 2,327.00$ Projected Final Plats100 100 100 100 100 100 100 100 100 100 100 Connection Charge2,014.00$ 2,128.00$ 2,149.00$ 2,170.00$ 2,192.00$ 2,214.00$ 2,236.00$ 2,258.00$ 2,281.00$ 2,304.00$ 2,327.00$ Projected Building Permits296 296 260 260 260 260 260 260 260 260 260 Forecast Budget2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 CommentsRevenuesWAC Fee 1,555,191$ 842,688$ 773,640$ 781,200$ 789,120$ 797,040$ 804,960$ 812,880$ 821,160$ 829,440$ 837,720$ 2023 = 7 Year Avg. / Remaining = 10 Year Avg.Special Assessments (Levied) 62,439 99,962 87,137 84,723 68,920 65,738 32,754 31,502 ‐ ‐ ‐ Current Levied WAC Assessments OnlyTotal 1,617,630 942,650 860,777 865,923 858,040 862,778 837,714 844,382 821,160 829,440 837,720 ExpensesDebt Service ‐ Principal 835,200 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Interest 208,906 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Fiscal Agent Fees 356 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Principal (2019A) ‐ ‐ 219,600 514,800 534,600 ‐ ‐ ‐ ‐ ‐ ‐ 36% of Total Debt Service per AmortizationDebt Interest (2019A)‐ 50,760 50,760 41,976 21,384 ‐ ‐ ‐ ‐ ‐ ‐ 36% of Total Debt Service per AmortizationDebt Principal (2021A)‐ 215,000 250,000 260,000 265,000 275,000 285,000 290,000 300,000 305,000 305,000 Principal & Interest per Amortization ScheduleDebt Interest (2021A)‐ 88,130 81,155 73,505 65,630 57,530 49,130 40,505 34,655 31,630 28,504 Principal & Interest per Amortization ScheduleDebt Principal (2021B)‐ 910,800 531,000 187,200 196,200 ‐ ‐ ‐ ‐ ‐ ‐ 36% of Total Debt Service per AmortizationDebt Interest (2021B)‐ 91,260 45,720 19,170 9,810 ‐ ‐ ‐ ‐ ‐ ‐ 36% of Total Debt Service per AmortizationDebt Service (Projected)‐ ‐ 384,381 384,381 711,104 1,451,422 3,265,699 3,265,699 3,265,699 3,265,699 3,265,699 Estimated Debt Service on Projected Bond IssuesTotal1,044,462 1,355,950 1,562,616 1,481,032 1,803,728 1,783,952 3,599,829 3,596,204 3,600,354 3,602,329 3,599,203 Cash Balance ‐ Beginning4,030,954 4,604,122 4,190,822 3,488,983 2,873,874 1,928,186 1,007,012 (1,755,103) (4,506,925) (7,286,119) (10,059,008) Balance Sheet EffectsRevenues1,617,630 942,650 860,777 865,923 858,040 862,778 837,714 844,382 821,160 829,440 837,720 Expenditures(1,044,462) (1,355,950) (1,562,616) (1,481,032) (1,803,728) (1,783,952) (3,599,829) (3,596,204) (3,600,354) (3,602,329) (3,599,203) Cash Balance ‐ Ending4,604,122$ 4,190,822$ 3,488,983$ 2,873,874$ 1,928,186$ 1,007,012$ (1,755,103)$ (4,506,925)$ (7,286,119)$ (10,059,008)$ (12,820,491)$ WAC Fees alone do not cover Future ProjectsProjectedY:\Budget\2023\Cash Flows\Utility Funds360-WACWATER UTILITY FUND - BUDGET PACKET - 8 City of OtsegoEnterprise Fund Budget ‐ 2023Department RequestsSanitary Sewer UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2020 2021 2022 2022 2023 CommentsRevenues602 49450 37200 SEWER SALES 2,434,760$ 2,975,880$ 3,140,627$ 3,008,688$ 3,438,000$ Based on Utility Rate Study602 49450 31900 PENALTIES AND INTEREST 34,594 53,059 62,626 60,000 60,000 Estimated ‐ Represents Average of Actuals for 2021‐2022 (YTD)TOTAL ‐ OPERATING2,469,354 3,028,939 3,203,254 3,068,688 3,498,000 602 49450 33100 FEDERAL GRANTS AND AIDS 1,633 ‐ ‐ ‐ ‐ 602 49450 36210 INTEREST EARNINGS 20,127 19,260 ‐ ‐ ‐ 602 49450 36213 NEY CHANGE IN INVESTMENT FMV 16,377 (32,312) ‐ ‐ ‐ 602 49450 36232 CAPITAL CONTRIB. DEVELOPERS 729,598 1,580,765 ‐ ‐ ‐ 602 49450 38991 REFUNDS & REIMBURSEMENTS 4,319 19,768 2,883 ‐ ‐ 602 49450 39250 TRANSFER IN ‐ CAPITAL ASSETS 100,745 611 ‐ ‐ ‐ 602 49450 39300 PROCEEDS ‐ BONDS ISSUED (0) (0) 650,646 15,500,000 5,245,000 TOTAL ‐ NON OPERATING872,798 1,588,092 653,528 15,500,000 5,245,000 TOTAL ‐ REVENUES 3,342,153 4,617,031 3,856,782 18,568,688 8,743,000 Expenses602 49450 101 FULL‐TIME EMPLOYEES REGULAR 287,186 333,204 316,172 405,835 456,446 Includes FT Hire (Based on May 2023 Hiring Timeline)602 49450 102 WAGES ‐ FT OVERTIME 14,302 22,715 17,213 15,000 15,000 602 49450 104 WAGES ‐ PT EMPOYEES 2,396 18,648 459 13,650 14,040 Includes 1 Seasonal Staff (26 Week Position @ 40 Hours)602 49450 121 PERA22,182 26,272 25,004 31,562 35,359 602 49450 122 FICA AND MEDICARE21,678 27,234 24,490 33,238 37,140 602 49450 130 OTHER EMPLOYER PAID INS41,037 42,397 47,295 60,694 76,691 602 49450 150 WORKERS COMPENSATION12,545 14,891 22,922 15,644 15,788 Based on Actual 2022‐2023 Premiums + 3% Inflation602 49450 191 GERF PENSION EXPENSE14,014 12,038 ‐ ‐ ‐ TOTAL ‐ PERSONAL SERVICES415,339 497,399 453,555 575,623 650,464 602 49450 201 OFFICE SUPPLIES AND EXPENSES6,680 6,699 7,212 6,000 7,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)602 49450 202 FUEL8,741 14,618 6,358 10,044 18,930 Allocated 75% of 5,609 Gallons (2021 Actual) at $4.50 (Same Rate as Fleet)602 49450 206 POSTAGE9,930 9,263 6,934 15,300 15,900 Allocated 50% of Monthly Bill Mailings (5,300 Accounts at $0.50)602 49450 210 OPERATING SUPPLIES19,361 27,848 24,033 25,000 26,500 See Detailed Attachment602 49450 216 CHEMICAL SUPPLIES31,825 87,645 144,886 140,800 227,800 See Detailed Attachment602 49450 220 REPAIRS/MAINT SUPPLIES74,826 78,409 55,912 50,000 63,000 See Detailed Attachment602 49450 225 UNIFORMS/CLOTHING ALLOWANCE2,713 3,210 1,948 2,350 3,025 See Detailed Attachment602 49450 227 SAFETY SUPPLIES483 10,025 10,165 2,500 7,500 602 49450 240 SMALL TOOLS/EQUIPMENT4,876 15,468 15,046 5,000 12,000 602 49450 298 W/S FLEET EXPENSES13,733 7,711 140 26,000 20,000 TOTAL ‐ SUPPLIES173,167 260,897 272,633 282,994 401,655 49450 ‐ Sanitary Sewer Utility FundAccount NumberY:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUTSewer FundSEWER UTILITY - BUDGET PACKET - 1 City of OtsegoEnterprise Fund Budget ‐ 2023Department RequestsSanitary Sewer UtilityRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2020 2021 2022 2022 2023 Comments49450 ‐ Sanitary Sewer Utility FundAccount Number602 49450 301 LEGAL SERVICES2,364 11,197 4,355 2,000 7,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)602 49450 302 ENGINEERING FEES804,174 2,060,306 47,626 45,000 51,000 See Detailed Attachment602 49450 303 PLANNING FEES2,000 2,375 3,025 1,000 3,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)602 49450 306 PERMIT & FEES7,350 18,200 10,200 7,350 11,800 See Detailed Attachment602 49450 309 SOFTWARE & SUPPORT‐ 1,700 194 ‐ ‐ 602 49450 315 GIS SERVICES1,279 7,310 1,630 5,000 5,000 602 49450 320 TELEPHONE6,109 8,068 9,157 8,865 13,500 See Detailed Attachment602 49450 321 MILEAGE/TRAVEL167 376 617 400 500 602 49450 322 UTILITIES221,114 296,494 288,889 226,000 285,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)602 49450 325 GARBAGE SERVICE23,037 27,603 24,096 29,260 26,000 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD)602 49450 350 PRINT & PUBLISHING128 190 112 300 300 Statutory Publish Requirements (Budget & Financial Statements)602 49450 355 DUES & MEMBERSHIPS372 372 ‐ 65 65 Suburban Utility Superintendent's Association ‐ Allocated 50%602 49450 360 EDUCATION/TRAINING/CONFERENCES2,908 5,761 3,502 6,300 6,650 See Detailed Attachment602 49450 361 LIABILITY AND PROPERTY INSURAN35,245 40,588 98,838 50,113 66,985 Based on Actual 2022‐2023 Premiums + 5% Inflation602 49450 390 CONTRACTED SERVICES193,755 167,635 139,650 152,800 180,500 See Detailed Attachment602 49450 402 REPAIRS/MAINT BUILDINGS‐ ‐ ‐ 10,000 10,000 East WWTF Security Improvements602 49450 410 RENTALS2,176 3,578 1,099 2,465 2,465 Folding & Envelope Stuffing Machine ‐ Lease Payments & R/M Allowance602 49450 419 BIOSOLIDS HAULING276,772 266,404 82,134 48,700 24,960 See Detailed Attachment602 49450 437 BANK SERVICE CHARGES30,032 41,252 38,748 34,650 40,950 Estimated ‐ Represents Average of Actuals for 2020‐2022 (YTD) + 5%TOTAL ‐ SERVICES & OTHER CHARGES1,608,981 2,959,408 753,872 630,268 735,675 602 49450 500 CAPITAL OUTLAY (GENERAL)6,072 ‐ 671 ‐ 1,000 IT Equipment ‐ Computer Additions and Replacements602 49450 501 EQUIPMENT87,150 18,336 898 ‐ 15,000 Lab Equipment (75% Allocation)602 49450 530 IMPROVEMENTS OTHER THAN BLDG8,067,201 6,235,804 2,898,849 16,120,000 22,560,000 See Detailed Attachment602 49450 550 MOTOR VEHICLES32,675 26,615 85,404 325,000 172,500 See Detailed Attachment602 49450 590 REHABILITATION & REPLACEMENT‐ 18,718 38,582 250,000 275,000 See Detailed Attachment602 49450 599 CAPITALIZED ASSET OFFSET(9,001,936) (8,298,294) ‐ ‐ ‐ TOTAL ‐ CAPITAL OUTLAY(808,837) (1,998,820) 3,024,405 16,695,000 23,023,500 602 49450 420 DEPRECIATION1,026,089 1,066,215 ‐ 1,877,356 2,402,810 Based on Utility Rate Study602 49450 601 BOND PRINCIPAL‐ ‐ 808,000 808,000 817,000 Debt Service ‐ 2020 PFA602 49450 602 BOND INTEREST33,327 153,044 185,150 187,625 988,652 Debt Service ‐ 2020 PFA & 2022A602 49450 620 FISCAL AGENT FEES17,500 ‐ 15,000 ‐ ‐ 602 49450 720 OPERATING TRANSFERS249,795 272,565 220,125 220,125 352,243 Administrative Contribution to General Fund + Fleet Replacement ReserveTOTAL ‐ OTHER1,326,712 1,491,824 1,228,275 3,093,106 4,560,705 TOTAL ‐ EXPENSES2,715,362 3,210,708 5,732,740 21,276,991 29,371,999 NET INCOME / (LOSS)626,791$ 1,406,324$ (1,875,958)$ (2,708,303)$ (20,628,999)$ Y:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUTSewer FundSEWER UTILITY - BUDGET PACKET - 2 City of OtsegoEnterprise Fund Budget ‐ 2023Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudgetBudget20222023Item Detail / DescriptionComments24,000$ 24,000$ Facility Operations & Preventative Maintenance Supplies1,000 2,500 Collection System / Lift Stations Operations & Maintenance Supplies‐ ‐ 25,000 26,500 33,000$ 64,700$ Ferric Chloride ‐ Phosphorous Removal 15,000 18,500 Polymer ‐ Belt Thickening Process50,400 66,242 Lime ‐ Solids Processing42,000 76,790 Polymer ‐ Solids Processing400 685 Sulfamic Acid ‐ Solids Processing‐ 883 Freight and Rounding140,800 227,800 15,000$ 15,000$ East Wastewater Treatment Faciltiy Corrective Maintenance15,000 15,000 West Wastewater Treatment Facility Corrective Maintenance8,000 8,000 Lift Stations Corrective Maintenance12,000 15,000 Collection System Corrective Maintenance (Ex. Chimney Replacements)‐ 10,000 Disinfection Process Maintenance‐ ‐ 50,000 63,000 1,600$ 1,900$ Clothing Allowance = $400 x 8 Operators & $600 x 1 New Hire (50% Allocation)600 675 Boot Allowance = $150 x 9 Operators (50% Allocation)75 225 Clothing Allowance = $150 x 3 Seasonal Operators (50% Allocation)75 225 Boot Allowance = $150 x 3 Seasonal Operators (50% Allocation)‐ ‐ 2,350 3,025 30,000$ 30,000$ General Sewer Engineering (Regulatory, Collection System, Consultation)15,000 21,000 AE2S ‐ Instrumentation Services & Staffing Tech Memo‐ ‐ 45,000 51,000 5,900$ 5,900$ MPCA ‐ Municipal Permit Annual Fee ‐ East WWTF1,450 5,900 MPCA ‐ Municipal Permit Annual Fee ‐ West WWTF‐ ‐ 7,350 11,800 3,240$ 5,145$ Employee Cell Phones ($45 x 9) + Replacement Phones ($2,000) ‐ Allocated 75%960 960 CenturyLink Alarm Phone Lines at Facilities ($80 Per Month)780 780 Answering Service ($65 Monthly)1,200 1,200 Land Line Telephone Service ($100 Monthly)810 720 Tablet's Data Plan ($40 x 2) ‐ Allocated 75%525 1,080 WIN‐911 Remote Monitoring Mobile Application ‐ Allocated 50%1,350 3,600 Charter Communications ‐ Internet Services for WWTF ‐ (~$300 Per Month)‐ 15 Rounding8,865 13,500 2,000$ 2,000$ Citywide Safety Program Training & LMC Learn2,800 3,150 Operator Certification Licensing and Training ($350 x 9 Operators)1,500 1,500 Leadership & Supervisory Training‐ ‐ 6,300 6,650 Supply inflation of 20‐30% YOY with full year productionRepair and maintenance related to aging equipment and infrastucture.602‐49450‐225UNIFORMS/CLOTHING ALLOWANCE602‐49450‐306602‐49450‐220Account No. & Description602‐49450‐210OPERATING SUPPLIES602‐49450‐216CHEMICAL SUPPLIESR/M SUPPLIES602‐49450‐302602‐49450‐360EDUCATION / TRAINING / CONFERENCEENGINEERING FEES602‐49450‐320TELEPHONEPERMITS & FEESY:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUT602-DetailSEWER UTILITY - BUDGET PACKET - 3 City of OtsegoEnterprise Fund Budget ‐ 2023Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudgetBudget20222023Item Detail / DescriptionCommentsAccount No. & Description47,000$ 50,000$ East & West WWTF Permit Required Certified Lab Analysis52,032 54,983 Locates (Hakanson) ‐ Based on 2020 ‐ 2022 YTD Monthly Average + 5%3,628 3,868 Locates (Gopher One) ‐ Based on 2020 ‐ 2022 YTD Monthly Average + 5% 12,000 12,000 Electrical6,000 6,000 Security Monitoring & Fire Monitoring 2,200 2,200 Lawn Services ‐ Spraying 4,500 4,500 Equipment inspections / Testing ‐ Generators 5,000 10,000 Collection System Repairs 7,000 7,000 Mechanical ‐ Heating & Air Conditioning 400 400 800Mhz Infrastructure fees ($100 per radio) Wright County1,000 1,000 Video Camera Services ‐ Inspect Sewer Lines for Grease2,000 2,000 Meter Calibrations5,000 3,000 VFD Inspections & Preventative Maintenance4,290 5,220 Aveva WonderWare Customer Support Agreement ‐ 50% Allocation750 750 OpWorks Software Agreement ‐ 50% Allocation‐ 1,080 Win911 Subscription ‐ 3yr renewal (2160) ‐ 50% Allocation‐ 16,500 Rate Study (50% Allocation)1 (1) Rounding Contingency + Inflationary Factor‐ ‐ 152,800 180,500 11,700$ ‐$ Class B Biosolids Land Application4,400 ‐ Material Transport ‐ West Digester Material to East WWTF20,000 3,600 Landfill Disposal ‐ East WWTF Biosolids Material12,600 21,360 Contracted Transportation of Rolloff Containers‐ ‐ 48,700 24,960 500,000$ ‐$ East WWTF Biosolids ‐ CIP Amount15,000,000 22,000,000 West WWT Liquids Capacity Expansion ‐ CIP Amount500,000 500,000 West WWTF Access Road120,000 60,000 Annual Lift Station Equipment Inspection and Reconditioning‐ ‐ 16,120,000 22,560,000 ‐$ 69,000$ Portable Generator Trailer (50% Allocation)‐ 43,500 3/4 Ton Extended Cab Pickup + Plow Equipment (75% Allocation)‐ 60,000 1 Ton Extended Cab Utility Body Pickup + Tool Box (75% Allocation)‐ ‐ ‐ 172,500 250,000$ 75,000$ Ongoing investment for costs of R&R as identified in Wastewater Treatment Master Plan.‐ 26,000 Odor Control Media Changeout‐ 14,000 WW Flow Meter‐ 15,000 Disinfection Process related‐ 15,000 Forcemain repair‐ 15,000 Aeration Equipment‐ 70,000 Lift Station Equipment & Reconditioning ‐ CIP identified‐ 15,000 EWWTF Pretreatment Equipment‐ 15,000 Thickening Equipment‐ 15,000 Communication Equipment‐ ‐ 250,000 275,000 602‐49450‐419BIOSOLIDS HAULING/DISPOSAL602‐49450‐550MOTOR VEHICLES602‐49450‐530IMPROVEMENTS OTHER THAN BUILDINGS602‐49450‐590REHABILITATION & REPLACEMENT602‐49450‐390CONTRACTED SERVICESY:\Budget\2023\Utility Funds\2023 UTILITY BUDGETS INPUT602-DetailSEWER UTILITY - BUDGET PACKET - 4 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2023 2032thruTotal2023 2024 2025 2026 2027Source2028 2029 2030 2031 2032 #602 - Sanitary Sewer Utility43,50043,5003/4 Ton Extended Cab PickupFLEET-23-0860,00060,0001 Ton Utility Body TruckFLEET-23-0969,00069,000Portable Generator TrailerFLEET-23-1031,200,00022,000,000 9,000,000 200,000West WWTF Liquids Capacity ExpansionSEWER-23-0160,00060,000Lift Station #3 ImprovementsSEWER-23-021,983,00075,000 75,000 475,000 123,000 135,000 115,000 750,000 100,000135,000Lift Station Equipment & ReconditioningSEWER-24-321,900,000500,000 200,000 1,200,000West WWTF - Access RoadSEWER-26-011,900,000200,000 1,700,000Lift Station - New Municipal Sanitary Lift StationSEWER-27-015,450,000200,000 1,000,000 4,000,000 250,000East WWTF - EL1 ExpansionSEWER-30-012,800,000200,0002,600,000New Lift StationSEWER-32-01602 - Sanitary Sewer Utility Total45,465,50022,732,500 9,075,000 475,000 1,875,000 1,823,000 335,000 1,115,000 4,750,000 550,000 2,735,00022,732,500 9,075,000 475,000 1,875,000 1,823,00045,465,500GRAND TOTAL335,000 1,115,000 4,750,000 550,000 2,735,000SEWER UTILITY - BUDGET PACKET - 5 City of OtsegoSewer Utility FundCash Flow SummaryRevised: November 22, 2022Rate Increase10.00% 10.00% 10.00% 10.00% 10.00% 5.00% 5.00% 5.00% 5.00% 2.00% 2.00% Based on Ehlers Utility Rate StudyNew Connections296 296 260 260 260 260 260 260 260 260 260 2023 = 7 Year Avg. / Remaining = 10 Year Avg.Forecast Forecast20222023202420252026202720282029203020312032CommentsSanitary Sewer FundUser Charges3,466,572$ 3,438,000$ 3,840,599$ 4,292,745$ 4,797,234$ 5,119,699$ 5,462,517$ 5,826,341$ 6,162,040$ 6,285,281$ 6,410,986$ 2022 Forecasted / 2023‐2030 Rate Study / 2031‐2032 = 2% Penalties55,584 60,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 2023 Budget ‐ Then StagnantBond Proceeds26,000,000 5,245,000 9,000,000 200,000 ‐ ‐ ‐ ‐ 5,450,000 ‐ ‐ Assumes $40.445M PFA Note and $5.450 GO BondSAC FundConnection Fees4,320,593 3,012,412 2,709,780 2,736,800 2,764,080 2,791,620 2,819,520 2,847,680 2,876,100 2,904,880 2,933,920 Assumes Rate Adjustments (1% Annually)Special Assessments193,812 289,711 252,699 245,999 217,679 208,580 84,020 80,765 ‐ ‐ ‐ Current Levied SAC AssessmentsTotal34,036,561 12,045,123 15,862,078 7,534,544 7,837,993 8,178,899 8,425,057 8,813,786 14,547,140 9,249,161 9,403,906 ExpensesPersonal Servcies575,623 650,464 789,978 873,677 959,888 1,048,684 1,140,145 1,294,349 1,393,180 1,434,975 1,538,024 2023 Budget ‐ Additions Per Staff Plan ‐ Then 3% InflationSupplies282,994 401,655 409,688 417,882 426,239 434,764 443,460 452,329 461,375 470,603 480,015 2023 Budget ‐ Then 2% InflationInsurance50,113 66,985 68,325 69,691 71,085 72,507 73,957 75,436 76,945 78,484 80,053 2023 Budget ‐ Then 2% InflationUtilities226,000 285,000 293,550 302,357 311,427 320,770 330,393 340,305 350,514 361,029 371,860 2023 Budget ‐ Then 3% InflationServices & Other Charges354,155 383,690 395,201 407,057 419,268 431,846 444,802 458,146 471,890 486,047 500,628 2023 Budget ‐ Then 3% InflationDepreciation1,877,356 2,402,810 2,490,188 2,520,694 2,567,586 2,606,195 2,667,941 2,709,602 2,765,274 2,820,579 2,876,991 2023‐2030 Per Rate Study / 2031‐2032 = 2% Debt Service ‐ Principal2,292,800 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Interest556,538 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Fiscal Agent Fees15,634 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsCapital Outlay (General)‐ 16,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2023 BudgetCapital Outlay (Fleet Additions)325,000 172,500 61,500 73,500 120,000 ‐ 67,500 ‐ 93,000 ‐ ‐ 2023‐2032 CIP ADDITIONS (ALLOCATED 75%)Capital Outlay (Current CIP)16,120,000 22,560,000 9,075,000 475,000 1,875,000 1,823,000 335,000 1,115,000 4,750,000 550,000 2,735,000 2023‐2032 CIPCapital Outlay (Collection)‐ 1,204,965 1,083,912 1,094,720 1,105,632 1,116,648 1,127,808 1,139,072 1,150,440 1,161,952 1,173,568 Assumed at 40% of SAC RevenueCapital Outlay (R & R Plan)250,000 275,000 300,000 325,000 350,000 375,000 400,000 425,000 450,000 450,000 450,000 Based on Master PlanDebt Service (2019A)‐ 90,240 480,640 989,824 988,416 ‐ ‐ ‐ ‐ ‐ ‐ Principal & Interest per Amortization ScheduleDebt Service (2020 PFA)‐ 1,002,362 1,006,305 1,006,703 1,005,986 1,006,164 1,006,226 1,006,171 1,006,001 1,006,715 1,006,300 Based on Preliminary Amortization (7‐28‐2022)Debt Service (2021B)‐ 1,781,440 1,025,280 366,880 366,240 ‐ ‐ ‐ ‐ ‐ ‐ Principal & Interest per Amortization ScheduleDebt Service (2022A)‐ 803,290 819,219 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Interest per Amortization Schedule (Principal Paid by PFA)Debt Service (Projected / PFA)‐ ‐ ‐ 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 Estimated PFA Amortization ($40.445 M)Debt Service (Projected / GO)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 418,975 418,975 Estimated Debt Service on Projected Bond IssuesTransfers Out ‐ General Fund220,125 240,450 247,664 255,093 262,746 270,629 278,747 287,110 295,723 304,595 313,733 General Fund ‐ Administrative Functions (Inflates 3%)Transfers Out ‐ Fleet Replacements‐ 111,793 132,425 147,640 156,758 192,230 202,195 215,814 215,814 228,841 231,215 2023‐2032 CIP (ALLOCATED 75%)Total23,146,338 32,448,644 18,678,874 11,623,791 13,284,345 11,996,510 10,816,247 11,816,407 15,778,229 12,070,868 14,474,436 Cash Balance ‐ Beginning16,800,793 29,568,372 11,567,661 11,241,053 9,672,500 6,793,734 5,582,318 5,859,070 5,566,051 7,100,236 7,099,108 Balance Sheet EffectsRevenues34,036,561 12,045,123 15,862,078 7,534,544 7,837,993 8,178,899 8,425,057 8,813,786 14,547,140 9,249,161 9,403,906 Expenditures(23,146,338) (32,448,644) (18,678,874) (11,623,791) (13,284,345) (11,996,510) (10,816,247) (11,816,407) (15,778,229) (12,070,868) (14,474,436) Noncash ‐ Depreciation1,877,356 2,402,810 2,490,188 2,520,694 2,567,586 2,606,195 2,667,941 2,709,602 2,765,274 2,820,579 2,876,991 Cash Balance ‐ Ending29,568,372$ 11,567,661$ 11,241,053$ 9,672,500$ 6,793,734$ 5,582,318$ 5,859,070$ 5,566,051$ 7,100,236$ 7,099,108$ 4,905,570$ Cash Balance ReserveOperating (100% of Next Year)4,431,054$ 4,694,593$ 4,846,451$ 5,018,240$ 5,185,395$ 5,379,445$ 5,617,277$ 5,814,901$ 5,956,312$ 6,161,305$ Debt Service (100% of Next Year)3,677,332 3,331,444 4,661,480 4,658,715 3,304,237 3,304,299 3,304,244 3,304,074 3,723,763 3,723,348 Total Cash Reserve Recommendation8,108,386 8,026,037 9,507,931 9,676,955 8,489,632 8,683,744 8,921,521 9,118,975 9,680,075 9,884,653 Percentage of Cash Reserve on Hand364.66% 144.13% 118.23%99.95% 80.02% 64.28% 65.67% 61.04% 73.35% 71.82%ProjectedY:\Budget\2023\Cash Flows\Utility FundsCombined Sewer (602+361)SEWER UTILITY - BUDGET PACKET - 6 City of OtsegoDebt Service Fund Budget ‐ 2023Fund 361 ‐ G.O. Revenue Refunding Bonds, Series 2019A & Series 2021BWater & Sanitary Sewer Infrastructure + BuildingsRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Object Account Description 2020 2021 2022 2022 2023Revenues361 47000 34407 SEWER AVAILABILITY + CONNECTION CHARGES 4,728,563$ 4,681,816$ 4,320,593$ 2,547,455$ 3,012,412$ 361 47000 36100 SPECIAL ASSESSMENTS 841,972 25,104 79,687 193,832 333,449 361 47000 36210 INVESTMENT EARNINGS 202,736 189,253 ‐ ‐ ‐ 361 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT 164,967 (317,514) ‐ ‐ ‐ 361 47000 39200 TRANSFERS IN 85,728 90,240 ‐ ‐ ‐ TOTAL 6,023,965 4,668,899 4,400,280 2,741,287 3,345,861 Expenditures361 47000 601 PRINCIPAL ‐ ‐ 1,484,800 1,484,800 1,619,200 361 47000 602 INTEREST 370,808 374,294 371,388 371,388 252,480 361 47000 620 FISCAL AGENT FEE'S 1,453 43,136 634 1,500 1,500 361 47000 650 DEBT SERVICE AMORTIZATION'S (98,310) (98,311) ‐ (98,311) (180,679) TOTAL 273,951 319,119 1,856,822 1,759,377 1,692,501 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES5,750,015$ 4,349,779$ 2,543,458$ 981,910$ 1,653,360$ Fund 361 ‐ G.O. Revenue Refunding Bonds, Series 2019A & 2021BAccount NumberSEWER UTILITY - BUDGET PACKET - 7 City of OtsegoSewer Access Charge FundCash Flow SummaryRevised: November 22, 2022Rate Increase9.22% 5.68% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Availability Charge2,885.00$ 3,049.00$ 3,079.00$ 3,110.00$ 3,141.00$ 3,172.00$ 3,204.00$ 3,236.00$ 3,268.00$ 3,301.00$ 3,334.00$ Projected Final Plats100 100 100 100 100 100 100 100 100 100 100 Connection Charge8,655.00$ 9,147.00$ 9,238.00$ 9,330.00$ 9,423.00$ 9,517.00$ 9,612.00$ 9,708.00$ 9,805.00$ 9,903.00$ 10,002.00$ Projected Building Permits296 296 260 260 260 260 260 260 260 260 260 Forecast Budget2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 CommentsRevenuesSAC Fee 4,320,593$ 3,012,412$ 2,709,780$ 2,736,800$ 2,764,080$ 2,791,620$ 2,819,520$ 2,847,680$ 2,876,100$ 2,904,880$ 2,933,920$ 2023 = 7 Year Avg. / Remaining = 10 Year Avg.Special Assessments (Levied) 193,812 333,449 295,069 287,003 257,316 246,850 120,924 116,301 ‐ ‐ ‐ Current Levied SAC Assessments OnlyTotal 4,514,405 3,345,861 3,004,849 3,023,803 3,021,396 3,038,470 2,940,444 2,963,981 2,876,100 2,904,880 2,933,920 ExpensesDebt Service ‐ Principal 1,484,800 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Interest 371,388 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Service ‐ Fiscal Agent Fee's 634 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ActualsDebt Principal (2019A) ‐ ‐ 390,400 915,200 950,400 ‐ ‐ ‐ ‐ ‐ ‐ 64% of Total Debt Service per AmortizationDebt Interest (2019A)‐ 90,240 90,240 74,624 38,016 ‐ ‐ ‐ ‐ ‐ ‐ 64% of Total Debt Service per AmortizationDebt Service (2020PFA)‐ 1,002,362 1,006,305 1,006,703 1,005,986 1,006,164 1,006,226 1,006,171 1,006,001 1,006,715 1,006,300 Based on Preliminary Amortization (7‐28‐2022)Debt Principal (2021B)‐ 1,619,200 944,000 332,800 348,800 ‐ ‐ ‐ ‐ ‐ ‐ 64% of Total Debt Service per AmortizationDebt Interest (2021B)‐ 162,240 81,280 34,080 17,440 ‐ ‐ ‐ ‐ ‐ ‐ 64% of Total Debt Service per AmortizationDebt Interest (2022A)‐ 803,290 819,219 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Interest per Amortization Schedule (Principal Will Fund bDebt Service (Projected / PFA)‐ ‐ ‐ 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 2,298,073 Estimated PFA Amortization ($40.445 M)Debt Service (Projected / GO)‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 418,975 418,975 Estimated Debt Service on Projected Bond IssuesTotal1,856,822 3,677,332 3,331,444 4,661,480 4,658,715 3,304,237 3,304,299 3,304,244 3,304,074 3,723,763 3,723,348 Cash Balance ‐ Beginning15,421,308 18,078,891 17,747,420 17,420,825 15,783,148 14,145,829 13,880,062 13,516,207 13,175,944 12,747,970 11,929,087 Balance Sheet EffectsRevenues4,514,405 3,345,861 3,004,849 3,023,803 3,021,396 3,038,470 2,940,444 2,963,981 2,876,100 2,904,880 2,933,920 Expenditures(1,856,822) (3,677,332) (3,331,444) (4,661,480) (4,658,715) (3,304,237) (3,304,299) (3,304,244) (3,304,074) (3,723,763) (3,723,348) Cash Balance ‐ Ending18,078,891$ 17,747,420$ 17,420,825$ 15,783,148$ 14,145,829$ 13,880,062$ 13,516,207$ 13,175,944$ 12,747,970$ 11,929,087$ 11,139,659$ SAC Fees reasonably cover Future ProjectsProjectedY:\Budget\2023\Cash Flows\Utility Funds361-SACSEWER UTILITY - BUDGET PACKET - 8 City of OtsegoStorm Water Utility Fund Budget ‐ 2023Department RequestsRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2020 2021 2022 2022 2023 CommentsRevenues220 49490 31010 CURRENT AD VALOREM TAXES32,000$ 34,000$ 18,000$ 36,000$ 38,000$ TOTAL ‐ OPERATING32,000 34,000 18,000 36,000 38,000 220 49490 36210 INTEREST EARNINGS689 835 ‐ ‐ ‐ 220 49490 36213 NET CHANGE IN INVESTMENT FMV560 (1,400) ‐ ‐ ‐ TOTAL ‐ NON OPERATING1,249 (565) ‐ ‐ ‐ TOTAL ‐ REVENUES33,249 33,435 18,000 36,000 38,000 Expenses220 49490 292 CULVERTS‐ 2,530 6,999 21,000 21,000 Lump Sum ‐ Replacement of Storm Water CulvertsTOTAL ‐ SUPPLIES685 2,530 6,999 21,000 21,000 220 49490 301 LEGAL SERVICES‐ ‐ ‐ 500 500 220 49490 302 ENGINEERING FEES‐ ‐ ‐ 6,000 6,000 25% of Culvert Costs ‐ Engineering OversightTOTAL ‐ SERVICES & OTHER CHARGES‐ ‐ ‐ 6,500 6,500 TOTAL ‐ EXPENSES685 2,530 6,999 27,500 27,500 NET INCOME / (LOSS)32,564$ 30,905$ 11,001$ 8,500$ 10,500$ Change ($)2,000 Change (%)23.53%49490 ‐ Storm Water Utility Fund (Out‐of‐District)Account NumberSTORM WATER UTILITY - BUDGET PACKET - 1 City of OtsegoStorm Water Utility Fund (Out District)Cash Flow SummaryRevised: November 22, 20225.88% 5.56% 5.26% 5.00% 4.76% 4.55% 4.35% 4.17% 4.00% 3.85% 3.70%Forecast Budget2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 CommentsRevenuesProperty Taxes 36,000$ 38,000$ 40,000$ 42,000$ 44,000$ 46,000$ 48,000$ 50,000$ 52,000$ 54,000$ 56,000$ Annual Increase of $2,000Total 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000 52,000 54,000 56,000 ExpensesSupplies 6,999 21,000 21,500 22,000 22,500 23,000 23,500 24,000 24,500 25,000 25,500 Engineering ‐ 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 Other Charges & Services ‐ 500 500 500 500 500 500 500 500 500 500 Total 6,999 27,500 28,500 29,500 30,500 31,500 32,500 33,500 34,500 35,500 36,500 Cash Balance ‐ Beginning88,841 117,842 128,342 139,842 152,342 165,842 180,342 195,842 212,342 229,842 248,342 Balance Sheet EffectsRevenues 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000 52,000 54,000 56,000 Expenditures(6,999) (27,500) (28,500) (29,500) (30,500) (31,500) (32,500) (33,500) (34,500) (35,500) (36,500) Cash Balance ‐ Ending117,842$ 128,342$ 139,842$ 152,342$ 165,842$ 180,342$ 195,842$ 212,342$ 229,842$ 248,342$ 267,842$ ProjectedY:\Budget\2023\Cash Flows\Utility Funds220-Storm(Out)STORM WATER UTILITY - BUDGET PACKET - 2 City of OtsegoStorm Water Utility Fund Budget ‐ 2023Department RequestsRequestedActual Actual Year‐to‐Date Budget BudgetFund Department Source Account Description 2020 2021 2022 2022 2023 CommentsRevenues222 49490 37500 STORMWATER UTILITY CHARGES85,983$ 90,601$ 99,857$ 89,986$ 105,095$ Assumes 2% Customer Growth222 49490 31900 PENALTIES AND INTEREST737 (1,542) 1,589 ‐ ‐ TOTAL ‐ OPERATING86,720 89,059 101,446 89,986 105,095 222 49490 36100 SPECIAL ASSESSMENTS33,859 33,141 18,002 32,331 31,986 Assessment Roll to Wright County222 49490 36210 INTEREST EARNINGS6,342 4,850 ‐ ‐ ‐ 222 49490 36213 NET CHANGE IN INVESTMENT FMV5,161 (8,137) ‐ ‐ ‐ 222 49490 36232 CAPITAL CONTRIB. DEVELOPERS454,473 1,351,740 ‐ ‐ ‐ 222 49490 39250 TRANSFER IN ‐ CAPITAL ASSETS166,048 895 ‐ ‐ ‐ TOTAL ‐ NON OPERATING665,883 1,382,489 18,002 32,331 31,986 TOTAL ‐ REVENUES752,603 1,471,548 119,448 122,317 137,081 Expenses222 49490 119 PAYROLL ALLOCATION12,945 13,626 ‐ 10,000 12,000 Reimbursement Allocation to Streets DepartmentTOTAL ‐ PERSONAL SERVICES12,945 13,626 ‐ 10,000 12,000 222 49490 220 REPAIRS/MAINT SUPPLIES 3,245 449 4,801 2,500 5,000 Rip‐Rap‐Rock / FabricTOTAL ‐ SUPPLIES3,245 449 4,801 2,500 5,000 222 49490 301 LEGAL SERVICES ‐ ‐ ‐ 500 500 222 49490 302 ENGINEERING FEES 23,329 28,252 9,129 20,000 20,000 Annual Costs ‐ Stormwater Pollution Prevention Plan (SWPPP)222 49490 303 PLANNING FEES350 50 100 ‐ 500 222 49490 315 GIS SERVICES‐ ‐ ‐ 1,000 1,000 222 49490 355 DUES & MEMBERSHIPS780 780 780 800 800 LMC ‐ Annual Stormwater Coalition Contribution222 49490 360 EDUCATION/TRANING/CONFERENCE‐ 375 ‐ 1,000 1,000 222 49490 390 CONTRACTED SERVICES‐ 3,166 1,041 2,500 2,500 Animal Trapping222 49490 441 LICENSES, TAXES & FEES581 2 5,884 3,000 3,000 TOTAL ‐ SERVICES & OTHER CHARGES25,040 32,625 16,933 28,800 29,300 222 49490 500 CAPITAL OUTLAY (GENERAL) ‐ 2,697 32,200 40,000 ‐ 222 49490 510 LAND ACQUSITION/EASEMENTS 1,500 ‐ ‐ ‐ ‐ TOTAL ‐ CAPITAL OUTLAY1,500 2,697 32,200 40,000 ‐ 222 49490 420 DEPRECIATION 95,570 136,318 ‐ 120,000 160,000 222 49490 720 OPERATING TRANSFERS 35,738 ‐ ‐ ‐ ‐ TOTAL ‐ OTHER131,308 136,318 ‐ 120,000 160,000 TOTAL ‐ EXPENSES174,037 185,715 53,934 201,300 206,300 NET INCOME / (LOSS)578,565$ 1,285,833$ 65,514$ (78,983)$ (69,219)$ Change ($)9,764 Change (%)‐12.36%49490 ‐ Storm Water Utility Fund (In‐District)Account NumberSTORM WATER UTILITY - BUDGET PACKET - 3 City of OtsegoStorm Water Utility Fund (In District)Cash Flow SummaryRevised: November 22, 2022Forecast Budget2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 CommentsRevenuesCharges for Services 103,034$ 105,095$ 107,197$ 109,341$ 111,527$ 113,758$ 116,033$ 118,354$ 120,721$ 123,135$ 125,598$ Assumes 2% Customer GrowthSpecial Assessments 32,331 31,986 31,986 31,986 31,986 31,986 31,986 31,986 31,986 31,986 31,986 2023 Budget ‐ Then StagnantTotal 135,365 137,081 139,183 141,327 143,513 145,744 148,019 150,340 152,707 155,121 157,584 ExpensesPersonal Services 10,000 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 2023 Budget ‐ Then 2% InflationSupplies 2,500 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 2023 Budget ‐ Then 2% InflationEngineering 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 2023 Budget ‐ Then 2% InflationOther Charges & Services 8,800 9,300 9,486 9,676 9,869 10,067 10,268 10,473 10,683 10,896 11,114 2023 Budget ‐ Then 2% InflationDepreciation 120,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 2023 Budget ‐ Then FlatCapital Outlay40,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total201,300 206,300 207,226 208,171 209,134 210,117 211,119 212,141 213,184 214,248 215,333 Cash Balance ‐ Beginning450,096 504,161 594,942 686,898 780,054 874,434 970,061 1,066,961 1,165,159 1,264,682 1,365,555 Balance Sheet EffectsRevenues135,365 137,081 139,183 141,327 143,513 145,744 148,019 150,340 152,707 155,121 157,584 Expenditures(201,300) (206,300) (207,226) (208,171) (209,134) (210,117) (211,119) (212,141) (213,184) (214,248) (215,333) Noncash ‐ Depreciation120,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Cash Balance ‐ Ending504,161$ 594,942$ 686,898$ 780,054$ 874,434$ 970,061$ 1,066,961$ 1,165,159$ 1,264,682$ 1,365,555$ 1,467,806$ ProjectedY:\Budget\2023\Cash Flows\Utility Funds222-Storm(In)STORM WATER UTILITY - BUDGET PACKET - 4 City 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 Contracted Fire Protection Services Albertville Fire Department ‐ Increased Budget for Wages & Insurance 10,306 Elk River Fire Department ‐ Budget Changes from Preliminary to Final 130 Miscellaneous Line Item Adjustments Postage ‐ Reduced to Better Reflect 2023 Estimates (2,200) Wages & Benefits ‐ Insurance Rates Finalized City Administrator 143 Administration (282) Finance (7,679) Human Resources 28 Building Safety (29) Streets Maintenance 727 Fleet Management (6,511) Parks Maintenance 3,409 Recreation (4,192) Property & Liability Insurance Rates Finalized City Council (390) City Administrator (45) Administration (122) Finance 117 Information Technology 4,586 Human Resources 16 Prairie Center 1,511 City Hall & Public Works Building (2,151) Building Safety (2) Streets Maintenance (231) Fleet Management (23) Parks Maintenance (26,126) Recreation (57) Contracted Services ‐ Based on 2020/2021 Actuals & 2022 YTD Legal (3,600) Engineering (3,600) Emergency Services Director Position Fire Protection 103,149 Total Expenditures ‐ Final Budget (December 12th) 7,976,649 Increase or (Decrease) Compared to Draft Budget Book 104,710 Y:\Budget\2023\General Fund\3.0 - 2023 FINAL BUDGETS INPUT City of Otsego Property Tax Levy Calculations Payable 2023 Revised: November 23, 2022 $% $% 2021 2022 2023 Change Change 2023 Change Change Comment General Revenues 4,671,000 5,009,000 5,309,000 300,000 5.99% 5,366,000 357,000 7.13%UPDATED ‐ Due to Expenditure Changes Tax Abatements 45,874 40,228 87,744 47,516 118.12% 74,668 34,440 85.61%UPDATED ‐ Due to TNT Tax Rate Decrease Debt Service Series 2010B 460,000 ‐ ‐ ‐ ‐ ‐ Series 2018A 94,551 97,187 94,416 (2,771) 94,416 (2,771) Series 2020A 195,000 450,000 450,000 ‐ 450,000 ‐ **NEW** ‐ ‐ ‐ ‐ ‐ ‐ Sub‐total 749,551 547,187 544,416 (2,771) ‐0.51% 544,416 (2,771) ‐0.51% Capital Reserves Pavement Management 1,050,000 1,100,000 1,100,000 ‐ 1,100,000 ‐ Trails Management 40,000 63,000 65,000 2,000 65,000 2,000 Parks Equipment 62,000 64,000 70,000 6,000 70,000 6,000 Capital Equipment Revolving 300,000 320,000 480,346 160,346 477,325 157,325 Fire Reserve 190,000 200,000 210,000 10,000 210,000 10,000 Storm Water 34,000 36,000 38,000 2,000 38,000 2,000 Capital Improvements 661,000 1,175,590 1,390,517 214,927 1,349,614 174,024 UPDATED ‐ Reduced to Maintain Total Levy City Buildings & Property 25,000 30,000 35,000 5,000 35,000 5,000 Sub‐total 2,362,000 2,988,590 3,388,863 400,273 13.39% 3,344,939 356,349 11.92% Tax Rate Management (Flexibility) ‐ ‐ Grand Total 7,828,425 8,585,005 9,330,023 745,018 8.68% 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 Provided by Wright County (9/8/2022) Growth (%) 10.29% 10.40% 25.02% 25.02% Net Tax Capacity 22,591,258 24,852,871 31,071,879 31,071,879 98% of Tax Capacity (Based on 2022) Growth (%) 10.22% 10.01% 25.02% 25.02% Tax Rate 34.653 34.545 30.027 29.397 UPDATED ‐ Provided by Wright County Population 18,130 19,966 21,289 21,289 Source = MN State Demographer Tax Levy Per Capita 432 430 438 438 Taxing 2021 2022 2023 2023 Authority Final Tax Rate Final Tax Rate Estimate Change TNT Tax Rate Change City of Otsego 34.653 34.545 30.027 ‐13.08% 29.397 ‐14.90% Wright County 43.719 43.751 37.700 ‐13.83% 37.778 ‐13.65% School District 31.717 30.889 30.889 0.00% 26.483 ‐14.26% School District ‐ RMV 30.598 28.698 28.698 0.00% 23.956 ‐16.52% Description 2021 2022 2023 Change 2023 Change Median Appraised Value 258,455 290,081 328,710 13.32% 328,710 13.32% Less: MV Exclusion (13,979) (11,133) (7,656) (7,656) Taxable Market Value 244,476 278,948 321,054 15.09% 321,054 15.09% Tax Capacity 2,445 2,789 3,211 3,211 2021 2022 2023 2023 Taxing Estimated Estimated Estimated Estimated Authority Tax Tax Tax Change Tax Change City of Otsego 847 964 964 0.00% 944 ‐2.07% Wright County 1,069 1,220 1,210 ‐0.82% 1,213 ‐0.57% School District 775 862 992 15.08% 850 ‐1.39% School District ‐ RMV 791 832 943 13.34% 787 ‐5.41% Total 3,482 3,878 4,109 5.96% 3,794 ‐2.17% Annual Increase 231 (84) Levy Description The City rate is calculated by the Finance Director. County and School District tax rates were obtained from Wright County, and represent the tax rate from their respective preliminary levies and are NOT FINAL. Source = Wright County Assessor These are best estimates calculated by the Finance Director based upon information available at the time of presentation. These should only be considered as estimates, and should NOT be considered final. Preliminary Tax Levy (9‐26‐2022)Budget Meeting (11‐28‐2022) Y:\Budget\2023\Property Taxes\Tax Levy Calculations (2023)11‐28 City of OtsegoFund Balance Policy General Fund Transfer2022Calculation Comments2022 General Fund Budget 7,347,416 Resolution 2021‐100Minimum Fund Balance 3,306,337 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.2021 Ending Fund Balance 5,199,901 Per Audited Financial Statements(245,758) Less: Fund Balance from Insurance Reserve Fund (#204) ‐ Grouped with General for Financial Reporting(27,043) Less: Fund Balance from Educational Programming Fund (#215) ‐ Grouped with General for Financial Reporting(152,273) Less: Nonspendable Fund Balance ‐ Financial Reporting Requirement ‐ Funds actually have alredy been expended.(202,200) Less: Nonspendable Fund Balance ‐ Financial Reporting Requirement ‐ Future funds from land for resale proceeds.4,572,627 Fund Balance Available (Unassigned)Transfer (2022 Budget) 1,266,290 DRAFT ‐ Presented to City Council on Month XX, 20222023 General Fund Budget 7,976,649 As of November 28, 2022Minimum Fund Balance 3,589,492 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.Transfer (2023 Budget) 983,135 DRAFT ‐ Presented to City Council on Month XX, 2022Y:\Budget\2023\Calculation of Fund Balance Policy Transfers2022