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Item 1. 2024 Budget, Tax Levy and Capital Improvement Plan Review
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163 TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: November 27, 2023 SUBJECT: Budget Meeting #7 On Monday, Council and staff will be reviewing the 2024 Water, Sanitary Sewer, and Storm Water Utility fund budgets along with their respective 2024-2033 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 2024 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 The City is currently in the process of a study reviewing system user rates for the Water and Sanitary Sewer funds. The current recommendations for rate increases have been factored into the operating budgets and cash flow projections and will be briefly discussed with the City Council. The next steps of the study will be a presentation to the Public Works Subcommittee, tentatively scheduled for December with a formal City Council review and discussion, likely in January. The rate changes, pending City Council approval, would become effective in March 2024. City staff are proposing a user rate increase for the Storm Water fund, which was not included in the study. The last rate increase for these charges was effective for calendar year 2018. The proposed rate increase will be reviewed with the City Council during the budget discussions, and rate changes, pending City Council approval, would become effective for calendar year 2024. The City is also currently in the process of a study reviewing development fees for Water and Sanitary Sewer system Availability and Connection Charges. The current recommendations for changes in fees have not been factored into the cash flow projections due to their preliminary nature and possible impacts. The next steps of the study will be a presentation to the Public Works Subcommittee, tentatively scheduled for December with a formal City Council review and discussion, likely in January. The fee changes, pending City Council approval, would become effective upon adoption. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163 General Fund The City Council was originally presented in August 2023 a draft budget, a balanced budget, with both revenues and expenditures totaling $9,559,758, which was a 19.85% increase from the prior year. In September 2023, the City Council adopted the preliminary property tax levy based on a preliminary budget, a balanced budget, with both revenues and expenditures totaling $9,462,677, which was a 18.63% increase from the prior year. Throughout the budget process, City staff continue to review the expenditure budgets that were presented during earlier budget meetings for any necessary revisions. As of this meeting, the expenditure budget totals $9,420,452, a decrease of $139,306 compared to the original requested budget, and an 18.10% increase from the prior year. 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 $11,148,427 in September. As of this meeting, the property tax levy is projected to be $11,035,424, a decrease of $113,003 from the preliminary levy. City Administrator/Finance Director Flaherty will provide an additional review of the changes during this meeting to gather feedback and direction from the City Council. Materials for Review and Discussion 1) Tax Levy Calculations December 11 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. 11/21/2023 1 2024 Utility Budget Narrative Kurt Neidermeier, Utility Manager November 27, 2023 2 Water & Wastewater Operations •Process monitoring, control & operations •Sampling, testing and interpretation •Records & Communication & Regulatory Compliance Water & Wastewater Maintenance •Preventative & Corrective •Emergency Reponses •Documentation Biosolids Production •Class A EQ •Regulatory Compliance •Transport Customer Services •Water Quality •Metering •Responses Utility Departments Overview 1 2 11/21/2023 2 3 East WWTF •Class A Major Facility •Class A EQ Biosolids Production •Leadership – Seth Wilkes •Facility Specialist – Reese Carstens West WWTF •Class B Minor Permitted to Class A Major •Membrane Construction •Leadership – Nick Beste •Facility Specialists; Robert Small & Andy Lindenfelser Water Treatment & Distribution / WW Collection & Conveyance •Class C Water System transitioning to Class B •Water Treatment: Chemical addition progressing to filtration •2023 Water production 900,000,000 gallons Divisional Emphasis & Focus 4 Wastewater AfterBefore 3 4 11/21/2023 3 5 Biosolids 6 Class A Exceptional Quality Biosolids (can use in garden) 2022 ~ 35 Tons per Week 2023 ~ 40 Tons per Week 2024 ~ 45 Tons per Week Free samples……… 5 6 11/21/2023 4 7 Tanker Truck Material Haul Lift Station Cleaning Manhole Pumping Tank Cleaning Tandem Truck Biosolids Hauling Landfill or Field Water 8 7 8 11/21/2023 5 9 1,200 Hydrants 100 Miles Watermain 2,700 Mainline valves Annual Water Appropriation = 800 Million gallons (DNR) Water Production 2023 ~ 900 Million gallons Max Production Day ~ 6.7 Million Gallons – trend increases each year Mount Simon Water Production Allotment = 700 Million gallons (DNR); 2023 will exceed Distribution System 10 9 10 11/21/2023 6 11 71 Miles Sanitary Sewer Manholes ~ 2,100 24 Sub Pumps 10 Lift Stations Forcemain ~27 miles 12 Jet Vac Sanitary Sewer Cleaning Lift Station Cleaning Storm Sewer Cleaning Hydro excavating Tank Cleaning Crane Truck Pump pulls Confined Space Tank Access Heavy Equipment Repairs On Site Maintenance 11 12 11/21/2023 7 13 Water Improvements Well 11 – Tunnel City Wonewoc Aquifer Geology Well House 4Booster Station System Interconnection 14 Positioning for Growth REC tracking frequency Master Planning – Water (updating) / Wastewater / Collection System Water Expansions – Storage / Well / Pressure Control Sites / Distribution connection Water Treatment design West WWTF Capacity Expansion Empowering the Organization Operator addition / Licensure advancements / Staffing plan & Tech memo Communication furtherance / Quarterly one on ones / Monthly check-ins Vehicle / Equipment considerations & procurement Risk and Resilience improvements Strategic Plan Alignment 13 14 11/21/2023 8 15 Operations Team 2023 Austin 2022 Renee 2021 Andy 2018 Robert 2016 Kurt 2013 Nick 2015 Seth 2013 Reese 2015 Matt 2023 Team Licensure Wastewater •Class A = 3•Class B = 2•Class C = 4•Class D = 0 Satisfies Wastewater System Operator Certification Type IV •Biosolids = 3 * Staff Advancements 2023 = 4 WW licenses Water•Class B = 5•Class C = 2•Class D = 2 Satisfies Water System Operator Certification 15 16 11/21/2023 9 17 20282025 Operator Hire – (Advertise February / Summer start) West WWTF operation & training / Well Construction / Added Assets Distribution improvements / Water Treatment progressions Customer Services – Water Quality, Emergency Responses, Locates, Curb Stops Meters – Reads, Inspections, Replacements Material Transport – West TWAS & Class A EQ Chlorides / Service Lines Water Collection/Distribution Water Treatment Construction & Designs Collection & Distribution System improvements Hydrants / Sanitary Cleaning & Correctives / Inspections Seasonal / Apprenticeship Supervisory Roles 2024 Staffing 17 18 11/21/2023 10 Regulatory Compliance Customer Satisfaction Proactive Infrastructure Expansion Team Elevation & Succession Technology Advancements Minimize Risk & Improve Resilience Maintain Competitive Customer Rates Department Goals Non Capital Meter replacements ~ 100 residential & staff sustainable Sanitary improvements – parallels street maintenance Chemical costs Capital Well 11 ~700 gpm Wellfield & Water Treatment location Water Treatment Progression West WWTF Expansion Vehicle replacement & addition Budget Highlights 19 20 11/21/2023 11 THANK YOU 21 City of OtsegoEnterprise Fund Budget - 2024Department RequestsWater UtilityRequestedActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2021 2022 2023 2023 2024 CommentsRevenues601 49400 37150 WATER SALES 2,142,158$ 2,112,798$ 2,586,108$ 2,016,135$ 2,735,884$ Based on 2023 Utility Rate Study (7.00% Rate Increase)601 49400 37155 WATER SALES - IRRIGATION 425,912 455,656 559,462 387,000 494,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)601 49400 37160 WATER NSF60 390 270 - - 601 49400 31900 PENALTIES AND INTEREST43,447 48,644 67,449 48,000 55,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)TOTAL - OPERATING2,611,577 2,617,488 3,213,290 2,451,135 3,284,884 601 49400 33100 FEDERAL GRANTS AND AIDS- - - - 3,400,000 Congressionally Directed Spending Grant601 49400 33422 OTHER STATE AID GRANTS- 10,000 20,000 - - 601 49400 34109 OTHER ADMINISTRATIVE CHARGES8,675 12,650 17,625 10,000 12,500 601 49400 34302 WATER METERS151,886 127,514 89,893 118,104 112,185 277 Meters at $405 (Cost of $375 + 1 HR Admin Time $30)601 49400 36100 SPECIAL ASSESSMENTS57,290 99,419 49,913 - - 601 49400 36210 INTEREST EARNINGS63,879 125,681 - - - 60149400 36213 NET CHANGE IN INVESTMENT FMV(107,170) (374,487) - - - 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS1,753,646 924,225 - - - 601 49400 37165 WATERTOWER RENTALS-ANTENNAS83,513 90,024 90,703 93,827 98,096 Tower #1 (Sprint/Verizon) and Tower #3 (Nextera)601 49400 37170 DNR FEES FOR STATE43,896 47,492 50,048 51,516 54,432 Estimated 5,600 Accounts at $9.72 (Actual is 5,295 as of 10/23/2023)601 49400 38991 REFUNDS & REIMBURSEMENTS25,949 15,672 6,201 10,000 7,500 601 49400 39250 TRANSFER IN - CAPITAL ASSETS871 - - - - 601 49400 39300 PROCEEDS - BONDS ISSUED- - - 5,000,000 4,600,000 Based on 2023 Utility Rate StudyTOTAL - NON OPERATING2,082,434 1,078,190 324,384 5,283,447 8,284,713 TOTAL - REVENUES4,694,011 3,695,677 3,537,674 7,734,582 11,569,597 Expenses601 49400 101 FULL-TIME EMPLOYEES REGULAR111,068 135,975 141,092 152,149 210,393 Includes FT Hire (Based on May 2024 Hiring Timeline)601 49400 102 WAGES - FT OVERTIME7,572 7,167 8,601 5,000 7,000 601 49400 104 WAGES - PT EMPLOYEES6,216 574 5,618 4,680 4,680 Includes 1 Seasonal Staff (26 Week Position @ 40 Hours)601 49400 121 PERA8,757 10,650 9,099 11,786 16,305 601 49400 122 FICA AND MEDICARE9,078 10,488 11,428 12,380 16,989 601 49400 130 OTHER EMPLOYER PAID INS14,133 19,402 21,828 25,564 30,198 601 49400 150 WORKERS COMPENSATION4,963 5,087 7,749 5,263 5,287 Based on Actual 2023-2024 Premiums + 3% Inflation601 49400 191 GERF PENSION EXPENSE3,938 19,405 - - - TOTAL - PERSONAL SERVICES165,725 208,747 205,415 216,822 290,852 601 49400 201 OFFICE SUPPLIES AND EXPENSES8,353 5,588 5,525 7,000 7,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)601 49400 202 FUEL3,408 6,671 - 6,310 7,689 Allocated 25% of 7,237 Gallons (2022 Actual) at $4.25 (Same Rate as Fleet)601 49400 206 POSTAGE9,219 7,025 9,429 15,900 16,800 Allocated 50% of Monthly Bill Mailings (5,600 Accounts at $0.50)601 49400 210 OPERATING SUPPLIES5,826 2,341 6,970 7,000 7,000 Operational & Preventative Maintenance Items601 49400 216 CHEMICAL SUPPLIES141,419 180,969 203,716 142,800 227,400 See Detailed Attachment601 49400 220 REPAIRS/MAINT SUPPLIES4,835 23,228 13,080 16,500 29,500 See Detailed Attachment601 49400 225 UNIFORMS/CLOTHING ALLOWANCE2,219 2,281 2,307 3,025 3,625 See Detailed Attachment601 49400 227 SAFETY SUPPLIES592 691 677 1,500 1,500 601 49400 228 UTILITY SYSTEM SUPPLIES382,834 381,643 300,571 304,000 152,300 See Detailed Attachment601 49400 240 SMALL TOOLS/EQUIPMENT16,604 1,057 4,514 7,500 9,900 See Detailed Attachment601 49400 298 W/S FLEET EXPENSES2,570 5,978 - 5,000 6,000 TOTAL - SUPPLIES577,880 617,471 546,790 516,535 468,714 49400 - Water Utility FundAccount NumberY:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUTWater FundWATER - 1 City of OtsegoEnterprise Fund Budget - 2024Department RequestsWater UtilityRequestedActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2021 2022 2023 2023 2024 Comments49400 - Water Utility FundAccount Number601 49400 301 LEGAL SERVICES4,915 4,145 1,787 5,000 4,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)601 49400 302 ENGINEERING FEES122,231 145,475 52,741 39,200 37,000 See Detailed Attachment601 49400 303 PLANNING FEES175 775 600 750 750 601 49400 306 PERMITS & FEES60,772 65,053 36,031 73,000 89,900 See Detailed Attachment601 49400 309 SOFTWARE & SUPPORT1,700 - 100 - - 601 49400 315 GIS SERVICES300 545 2,102 1,000 1,500 601 49400 320 TELEPHONE4,334 8,285 10,424 13,900 13,900 See Detailed Attachment601 49400 321 MILEAGE/TRAVEL- 188 119 400 400 601 49400 322 UTILITIES135,904 152,712 131,171 125,000 148,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)601 49400 350 PRINT & PUBLISHING94 1,164 1,202 300 300 Statutory Publish Requirements (Budget & Financial Statements)601 49400 355 DUES & MEMBERSHIPS424 425 525 365 625 See Detailed Attachment601 49400 360 EDUCATION/TRAINING/CONFERENCES1,633 2,083 1,360 5,350 4,400 See Detailed Attachment601 49400 361 LIABILITY AND PROPERTY INSURAN11,602 14,463 39,024 21,167 24,948 Based on Actual 2023-2024 Premiums + 3% Inflation601 49400 390 CONTRACTED SERVICES105,348 125,228 89,503 178,400 146,200 See Detailed Attachment601 49400 402 REPAIRS/MAINT BUILDINGS- 53,069 10,823 10,000 10,000 Well House - Siding, Chemical Doors, Gutters601 49400 410 RENTALS3,578 1,648 1,647 2,465 2,696 Folding & Envelope Stuffing Machine - Lease Payments & R/M Allowance601 49400 437 BANK SERVICE CHARGES13,751 15,723 13,900 13,650 15,750 Estimated - Represents Average of Actuals for 2021-2023 (YTD) + 5%601 49400 441 LICENSES, TAXES & FEES100 1,094 - - - TOTAL - SERVICES & OTHER CHARGES466,860 592,074 393,058 489,947 500,369 601 49400 500 CAPITAL OUTLAY (GENERAL)- 224 186 1,000 1,000 IT Equipment - Computer Additions and Replacements601 49400 501 EQUIPMENT3,941 299 4,763 5,000 3,000 Utility Trailer601 49400 510 LAND ACQUISITIONS/EASEMENTS- 36,276 56,325 - - 601 49400 525 BUILDING IMPROVEMENTS- 16,750 - 15,000 - 601 49400 530 IMPROVEMENTS OTHER THAN BLDG3,478,225 1,007,217 2,180,852 5,114,777 6,840,188 See Detailed Attachment601 49400 550 MOTOR VEHICLES8,872 - 85,298 103,500 71,309 See Detailed Attachment601 49400 590 REHABILITATION & REPLACEMENT- - 9 50,000 50,000 Ongoing investment for costs of R&R - Water Master Plan601 49400 599 CAPITALIZED ASSET OFFSET(3,550,653) (1,069,520) - - - TOTAL - CAPITAL OUTLAY(59,615) (8,754) 2,327,433 5,289,277 6,965,497 60149400 420 DEPRECIATION703,828 758,588 - 1,067,049 1,265,932 Based on 2023 Utility Rate Study601 49400 601 BOND PRINCIPAL- - 215,000 215,000 250,000 Debt Service - 2021A601 49400 602 BOND INTEREST23,448 92,776 88,130 88,130 81,155 Debt Service - 2021A601 49400 620 FISCAL AGENT FEES92,521 674 495 500 500 601 49400 650 DEBT SERVICE AMORTIZATION'S- (15,695) - (14,772) (15,695) Amortization of Bond Premium601 49400 720 OPERATING TRANSFERS111,535 73,375 80,150 117,414 106,750 Administrative Contribution to General FundTOTAL - OTHER931,332 909,718 383,775 1,473,322 1,688,642 TOTAL - EXPENSES2,082,182 2,319,257 3,856,471 7,985,903 9,914,074 NET INCOME / (LOSS)2,611,829$ 1,376,420$ (318,797)$ (251,321)$ 1,655,523$ Y:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUTWater FundWATER - 2 City of OtsegoEnterprise Fund Budget - 2024Detail of Line Item RequestsWater UtilityRequestedBudget Budget2023 2024 Item Detail / Description Comment9,781$ 12,851$ Fluoride117,369 190,452 Polyphosphate15,649 23,405 Chlorine- 670 Freight Charges1 22 Rounding142,800 227,400 16,500$ 15,000$ Corrective Maintenance Items (Ex. Chemical Pumps, Valves, Repairs)- 2,500 Hydrants - Repair Kits, Candy Canes, Paint- 4,500 Wells - Meter Repair & Replacement- 7,500 Valves - Caps, Extensions, Sections, Pressure Reducing Valves- - 16,500 29,500 1,900$ 2,100$ Clothing Allowance = $400 x 9 Operators & $600 x 1 New Hire (50% Allocation)675 1,000 Boot Allowance = $200 x 10 Operators (50% Allocation)225 225 Clothing Allowance = $150 x 3 Seasonal Operators (50% Allocation)225 300 Boot Allowance = $200 x 3 Seasonal Operators (50% Allocation)3,025 3,625 304,000$ -$ Prior Year Total - Lump Sum- 92,408 New Residential Meters & Horns- 34,465 Replacement Meters - 5/8" Residential Meters- 2,700 Replacement Meters - 1" Meters- 14,250 Replacement Meters - 1.50" Meters & Flange Kits- 8,470 Replacement Meters - 2" Meters & Flange Kits- 7 Rounding- - 304,000 152,300 7,500$ -$ Prior Year Total - Lump Sum- 5,200 Truck Mounted Hydrant Flushing Diffusers- 4,700 Hoses, Keys, Wrenches, Locators, Truck Tools- - 7,500 9,900 20,000$ 20,000$ General Water Engineering (Regulatory, Distribution System, Consultation)16,000 - AE2S - Instrumentation Services & Staffing Plan Tech Memo3,200 - KLM - Water Tower #1 Inspection Services- 17,000 Water Supply and Wellhead Protection Plan Updates39,200 37,000 51,516$ 54,432$ Minnesota Department of Health Testing ($9.72 at 5,600 Accounts)21,000 35,000 DNR - Water Usage400 400 Tier II Permits (4 @ $100)84 68 Rounding- - 73,000 89,900 1,715$ 1,850$ Employee Cell Phones ($45 x 10) + Replacement Phones ($2,000) - Allocated 25%960 984 CenturyLink Alarm Phone Lines at Facilities ($82 Per Month)780 960 Answering Service ($80 Monthly)420 420 Land Line Telephone Service ($35 Monthly)240 240 Tablet's Data Plan ($40 x 2) - Allocated 25%1,080 1,080 WIN-911 Remote Monitoring Mobile Application - Allocated 50%8,640 6,600 Charter Communications - Internet Services for Security Systems - (~$110 Per Month)- 1,680 SCADA System Data Plans ($40 x 14) - Allocated 25%65 86 Rounding13,900 13,900 601-49400-306Environment, Natural Resources Bill passed increasing water use permit fees for months of May - September over January use. Accounts as of 10/23/2023 = 5,295.PERMITS & FEESR/M SUPPLIES601-49400-225UNIFORMS/CLOTHING ALLOWANCE601-49400-302ENGINEERING FEES601-49400-228A meter order was placed in February of 2023 and is expected to arrive in January of 2024.UTILITY SYSTEM SUPPLIES601-49400-240SMALL TOOLS/EQUIPMENTAccount No. & Description601-49400-216Water production trends & chemical cost increase based.CHEMICAL SUPPLIES601-49400-320TELEPHONE601-49400-220Repair and maintenance related to aging equipment and infrastucture. Larger equipment maintenance items are budgeted specifically, or now accounted for in Object #590 as Replacement and Rehabilitation costs.Y:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUT601-DetailWATER - 3 City of OtsegoEnterprise Fund Budget - 2024Detail of Line Item RequestsWater UtilityRequestedBudget Budget2023 2024 Item Detail / Description CommentAccount No. & Description300$ 300$ Minnesota Rural Water Association65 125 Suburban Utility Superintendent's Association- 200 Other365 625 700$ 650$ Citywide Safety Program Training3,150 3,000 Operator Certification Licensing and Training ($300 x 10 Operators)1,500 - Leadership & Supervisory Training- 750 Commercial Drivers License - Training and Certification - Allocated 25%5,350 4,400 54,983$ 53,452$ Locates (Hakanson) - Based on 2021 - 2023 YTD Monthly Average + 5%3,868 3,590 Locates (Gopher One) - Based on 2020 - 2022 YTD Monthly Average + 5%15,000 15,000 Electrical Maintenance3,500 3,500 Neptune Service Agreement5,220 5,220 Aveva WonderWare Customer Support Agreement - 50% Allocation750 750 OpWorks Software Agreement - 50% Allocation3,840 2,700 W/H Security Monitoring @ $225 per month (1 Water Towers + 4 Well Houses)3,600 5,000 Lab Testing5,000 5,000 Equipment Inspections & Testing - Generator/ Meters/RPZ15,000 15,000 Distribution Repairs / Watermain Leaks1,500 2,000 Mechanical - Heating & Air Conditioning1,800 3,500 VFD Inspections & Preventative Maintenance400 400 800Mhz Infrastructure fees ($100 per radio) Wright County30,800 - Water Meter Change-Out Project7,500 8,000 Fire Hydrant Painting (100 Hydrants)8,000 23,000 Water Tower Exterior Cleaning - Water Tower 1 & 31,080 - Win911 Subscription16,500 - Rate Study (50% Allocation)59 88 Rounding Contingency + Inflationary Factor- - 178,400 146,200 3,504,134$ 150,000$ East & West Water System Connection and Booster Station Improvements132,000 150,000 Annual Well Equipment Inspection and Reconditioning (2024 is for Well #5)1,093,455 - Well #1040,188 40,188 CSAH 38 & CSAH 19 Local Share150,000 950,000 Well #1170,000 4,600,000 Water Treatment at Wellhouse 4125,000 750,000 Central Water Facility- 200,000 Trunk Watermain Extensions- - - - 5,114,777 6,840,188 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)- 53,809 Portable Generator Trailer (50% Allocation)- 17,500 3/4 Ton Extended Cab Pickup + Plow Equipment (25% Allocation)- - 103,500 71,309 601-49400-550MOTOR VEHICLES601-49400-530IMPROVEMENTS OTHER THAN BUILDINGS601-49400-355DUES & MEMBERSHIPSCONTRACTED SERVICES601-49400-390601-49400-360EDUCATION / TRAINING / CONFERENCEY:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUT601-DetailWATER - 4 City of OtsegoDebt Service Fund Budget - 2024Fund 360 - G.O. Revenue Refunding Bonds, Series 2019A & Series 2021BWater & Sanitary Sewer Infrastructure + BuildingsRequestedActual Actual Year-to-Date Budget BudgetFund Department Object Account Description 2021 2022 2023 2023 2024Revenues360 47000 34406 WATER AVAILABILITY + CONNECTION CHARGES 1,665,297$ 1,653,384$ 986,965$ 842,688$ 822,614$ 360 47000 36100 SPECIAL ASSESSMENTS 7,961 218,295 46,611 99,962 87,174 360 47000 36210 INVESTMENT EARNINGS 54,370 81,457 - - - 360 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT (91,218) (242,714) - - - 360 47000 39200 TRANSFERS IN 50,760 - - - - TOTAL 1,687,170 1,710,423 1,033,575 942,650 909,788 Expenditures360 47000 390 CONTRACTED SERVICES - - 4,053 - - 360 47000 510 LAND ACQUISITION / EASEMENTS - - 9,194 - - 360 47000 601 PRINCIPAL - - 910,800 910,800 750,600 360 47000 602 INTEREST 210,540 182,147 142,020 142,020 96,480 360 47000 620 FISCAL AGENT FEE'S 24,329 535 356 750 750 360 47000 650 DEBT SERVICE AMORTIZATION'S (55,300) (116,577) - (101,632) (116,577) 360 47000 750 TRANSFER OUT - CAPITAL ASSETS - - - - - TOTAL 179,569 66,105 1,066,422 951,938 731,253 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES1,507,601$ 1,644,318$ (32,847)$ (9,288)$ 178,535$ Fund 360 - G.O. Revenue Refunding Bonds, Series 2019A & 2021BAccount NumberWATER - 5 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2024 2033thruTotal2024 2025 2026 2027 2028Source2029 2030 2031 2032 2033 #601 - Water Utility40,18840,188CSAH 38 & CSAH 19 - Local ShareCSAH-2020-0417,50017,5003/4 Ton Extended Cab PickupFLEET-24-0553,80953,809Portable Generator TrailerFLEET-24-07489,33222,500 183,000 120,000 20,500 32,750 25,250 25,00060,3322025-2033 Future Fleet - Public UtilitiesFLEET-25-04150,000150,000East & West Connection - Phase 1WATER-23-021,350,000950,000 400,000Well #11 - New Municipal WellWATER-24-017,100,0004,600,000 2,500,000Water Treatment - Well House #4WATER-24-02150,000150,000Well #5 ImprovementsWATER-24-031,750,000750,000 1,000,000Central Water Facility - Phase 1WATER-24-046,700,000200,000 1,500,000 1,000,000 1,000,000 1,000,000 1,000,0001,000,000Trunk WatermainWATER-24-331,235,000150,000 150,000 170,000 120,000 30,000 80,000 80,000 195,000260,000Annual Well & Equipment Inspection and ReconditionWATER-25-338,000,000800,000 6,200,000 1,000,000Water Treatment - Well House #3WATER-26-0110,000,000500,000 2,500,000 6,000,000 1,000,000Central Water Facility - Phase 2WATER-26-022,500,000400,000 2,000,000 100,000East & West Connection - Phase 2WATER-27-0122,000,000750,000 6,000,000 10,000,000 5,250,000Central Water Facility - Phase 3WATER-27-021,777,00027,000 1,750,000Water Tower #3 ReconditioningWATER-28-01200,000200,000Land Purchase - Water Tower #5WATER-29-016,000,0001,000,000 4,000,0001,000,000Central Water Facility - Phase 4WATER-32-01601 - Water Utility Total69,512,8296,911,497 7,622,500 15,433,000 20,317,000 9,240,500 262,750 1,105,250 1,080,000 5,220,000 2,320,3326,911,497 7,622,500 15,433,000 20,317,000 9,240,50069,512,829GRAND TOTAL262,750 1,105,250 1,080,000 5,220,000 2,320,332WATER - 6 City of OtsegoWater Utility FundCash Flow SummaryRevised: November 21, 2023Rate Increase6.00% 6.00% 7.00% 7.00% 10.00% 10.00% 13.00% 13.00% 3.00% 3.00% 3.00% 3.00% Based on Ehlers Utility Rate StudyActual Forecast Budget202220232024202520262027202820292030203120322033CommentsWater FundWater Sales2,112,798$ 2,624,364$ 2,735,884$ 2,962,714$ 3,370,645$ 3,824,877$ 4,452,551$ 5,183,321$ 5,495,325$ 5,776,740$ 6,070,396$ 6,376,712$ 2024-2033 Rate Study - Less Irrigation/Penalties/MetersWater Sales - Irrigation455,656 559,462 494,000 494,000 494,000 494,000 494,000 494,000 494,000 494,000 494,000 494,000 2024 Budget - Then StagnantPenalties and Interest48,644 67,449 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 2024 Budget - Then StagnantMeter Sales127,514 89,893 112,185 112,185 112,185 112,185 112,185 112,185 112,185 112,185 112,185 112,185 2024 Budget - Then StagnantSpecial Assessments99,419 - - - - - - - - - - - Antenna Rentals90,024 90,703 98,096 98,096 98,096 98,096 98,096 98,096 98,096 98,096 98,096 98,096 2024 Budget - Then StagnantInvestment Interest (Net)(248,806) - - - - - - - - - - - Miscellaneous86,204 94,144 74,432 74,432 74,432 74,432 74,432 74,432 74,432 74,432 74,432 74,432 DNR Testing Fees - 2024 Budget - Then StagnantIntergovernmental- - 3,400,000 - - - - - - - - - Congressionally Directed Spending GrantBond Proceeds- - 4,600,000 17,700,000 - 26,100,000 - - - - 5,400,000 2,200,000 Projected Bond IssuancesWAC FundConnection Fees1,653,384 986,965 822,614 830,908 839,202 847,496 855,790 864,461 873,132 881,803 890,474 899,522 Assumes Rate Adjustments (1% Annually)Special Assessments218,295 100,001 87,174 84,759 68,926 65,745 32,754 31,502 - - - - Current Levied WAC AssessmentsInvestment Interest (Net)(161,257) - - - - - - - - - - - Total4,481,875 4,612,981 12,479,385 22,412,094 5,112,486 31,671,831 6,174,808 6,912,997 7,202,170 7,492,256 13,194,583 10,309,947 ExpensesPersonal Servcies208,748 216,822 290,852 350,215 411,359 449,019 487,808 527,761 543,594 585,220 628,096 672,257 2024 Budget - Additions Per Staff Plan - Then 3% InflationSupplies617,472 516,535 468,714 478,088 487,650 497,403 507,351 517,498 527,848 538,405 549,173 560,157 2024 Budget - Then 2% InflationInsurance14,463 21,167 24,948 25,447 25,956 26,475 27,005 27,545 28,096 28,657 29,231 29,815 2024 Budget - Then 2% InflationUtilities152,712 125,000 148,000 152,440 157,013 161,724 166,575 171,573 176,720 182,021 187,482 193,106 2024 Budget - Then 3% InflationServices & Other Charges424,900 343,780 327,421 337,244 347,361 357,782 368,515 379,571 390,958 402,687 414,767 427,210 2024 Budget - Then 3% InflationDepreciation758,588 1,067,049 1,265,932 1,460,325 1,857,841 2,386,390 2,629,186 2,636,159 2,665,784 2,695,021 2,837,747 2,901,824 Based on 2023 Utility Rate StudyDebt Service - Principal835,200 - - - - - - - - - - - ActualsDebt Service - Interest287,065 - - - - - - - - - - - ActualsDebt Service - Fiscal Agent Fees1,209 - - - - - - - - - - - ActualsCapital Outlay1,060,766 - - - - - - - - - - - ActualsCapital Outlay (General)- 21,000 4,000 - - - - - - - - - 2024 BudgetCapital Outlay (Fleet CIP)- 103,500 71,309 22,500 183,000 120,000 20,500 32,750 25,250 - 25,000 60,332 2024-2033 CIP (ALLOCATED 25%)Capital Outlay (CIP)- 5,114,777 6,840,188 7,600,000 15,250,000 20,197,000 9,220,000 230,000 1,080,000 1,080,000 5,195,000 2,260,000 2024-2033 CIPCapital Outlay (R & R Plan)- 50,000 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)- 303,130 331,155 333,505 330,630 332,530 334,130 330,505 334,655 336,630 333,504 335,120 Principal & Interest per Amortization ScheduleDebt Service (2021B)- 1,002,060 576,720 206,370 206,010 - - - - - - - Principal & Interest per Amortization ScheduleDebt Service (Projected)- - - 434,233 2,151,037 2,151,037 4,408,116 4,408,116 4,408,116 4,408,116 4,408,116 4,946,094 Estimated Debt Service on Projected Bond IssuesTransfers Out - General Fund73,375 80,150 106,750 109,953 113,251 116,649 120,148 123,753 127,465 131,289 135,228 139,285 General Fund - Administrative Functions (Inflates 3%)Total4,434,498 9,015,730 10,776,349 12,117,095 22,127,092 26,846,008 18,339,334 9,435,229 10,358,485 10,438,047 14,793,343 12,575,200 Cash Balance - Beginning11,515,562 12,116,426 8,780,726 11,749,694 23,505,017 8,348,252 15,560,466 6,025,126 6,139,052 5,648,522 5,397,752 6,636,739 Balance Sheet Effects(205,101) Revenues4,481,875 4,612,981 12,479,385 22,412,094 5,112,486 31,671,831 6,174,808 6,912,997 7,202,170 7,492,256 13,194,583 10,309,947 Expenditures(4,434,498) (9,015,730) (10,776,349) (12,117,095) (22,127,092) (26,846,008) (18,339,334) (9,435,229) (10,358,485) (10,438,047) (14,793,343) (12,575,200) Noncash - Depreciation758,588 1,067,049 1,265,932 1,460,325 1,857,841 2,386,390 2,629,186 2,636,159 2,665,784 2,695,021 2,837,747 2,901,824 Cash Balance - Ending 12,116,426$ 8,780,726$ 11,749,694$ 23,505,017$ 8,348,252$ 15,560,466$ 6,025,126$ 6,139,052$ 5,648,522$ 5,397,752$ 6,636,739$ 7,273,310$ Cash Balance ReserveOperating (100% of Next Year) 2,370,503$ 2,632,617$ 2,913,711$ 3,400,431$ 3,995,441$ 4,306,588$ 4,383,858$ 4,460,464$ 4,563,301$ 4,781,723$ 4,923,654$ Debt Service (100% of Next Year)1,355,950 1,178,235 1,530,884 3,243,661 2,483,567 4,742,246 4,738,621 4,742,771 4,744,746 4,741,620 5,281,214 Total Cash Reserve Recommendation3,726,453 3,810,852 4,444,595 6,644,092 6,479,008 9,048,834 9,122,479 9,203,235 9,308,047 9,523,343 10,204,868 Percentage of Cash Reserve on Hand325.15% 230.41% 264.36% 353.77% 128.85% 171.96%66.05% 66.71% 60.68% 56.68% 65.04%ProjectedY:\Budget\2024\Cash Flows\Utility FundsCombined Water (601+360)WATER - 7 City of OtsegoEnterprise Fund Budget - 2024Department RequestsSanitary Sewer UtilityRequestedActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2021 2022 2023 2023 2024 CommentsRevenues602 49450 37200 SEWER SALES 2,975,880$ 3,476,471$ 3,602,728$ 3,438,000$ 4,213,345$ Based on 2023 Utility Rate Study (4.50% Rate Increase)602 49450 31900 PENALTIES AND INTEREST 53,059 62,598 89,348 60,000 70,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)TOTAL - OPERATING3,028,939 3,539,069 3,692,076 3,498,000 4,283,345 602 49450 33100 FEDERAL GRANTS AND AIDS - - 737,311 - - 602 49450 36200 MISCELLANEOUS REVENUES - 50 - - - 602 49450 36210 INTEREST EARNINGS 19,260 104,980 - - - 602 49450 36213 NEY CHANGE IN INVESTMENT FMV (32,312) (312,806) - - - 602 49450 36232 CAPITAL CONTRIB. DEVELOPERS 1,580,765 866,924 - - - 602 49450 38991 REFUNDS & REIMBURSEMENTS 19,768 4,685 4,636 - 5,000 602 49450 39250 TRANSFER IN - CAPITAL ASSETS 611 - - - - 602 49450 39300 PROCEEDS - BONDS ISSUED (0) (0) 13,789 5,245,000 15,000,000 2023A PFA Note Draw Requests (Same as CIP Budget for 2024)TOTAL - NON OPERATING1,588,092 663,833 755,736 5,245,000 15,005,000 TOTAL - REVENUES 4,617,031 4,202,902 4,447,813 8,743,000 19,288,345 Expenses602 49450 101 FULL-TIME EMPLOYEES REGULAR 333,204 407,925 347,258 456,446 631,179 Includes FT Hire (Based on May 2024 Hiring Timeline)602 49450 102 WAGES - FT OVERTIME 22,715 21,502 16,637 15,000 21,000 602 49450 104 WAGES - PT EMPOYEES18,648 1,721 8,476 14,040 14,040 Includes 1 Seasonal Staff (26 Week Position @ 40 Hours)602 49450 121 PERA26,272 31,949 27,285 35,359 48,914 602 49450 122 FICA AND MEDICARE27,234 31,465 27,566 37,140 50,966 602 49450 130 OTHER EMPLOYER PAID INS42,397 58,206 65,478 76,691 90,593 602 49450 150 WORKERS COMPENSATION14,891 15,258 23,244 15,788 15,860 Based on Actual 2023-2024 Premiums + 3% Inflation602 49450 191 GERF PENSION EXPENSE12,038 58,226 - - - TOTAL - PERSONAL SERVICES497,399 626,252 515,944 650,464 872,552 602 49450 201 OFFICE SUPPLIES AND EXPENSES6,699 7,351 6,408 7,000 7,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)602 49450 202 FUEL14,618 26,392 6,352 18,930 23,068 Allocated 75% of 7,237 Gallons (2022 Actual) at $4.25 (Same Rate as Fleet)602 49450 206 POSTAGE9,263 6,973 9,181 15,900 16,800 Allocated 50% of Monthly Bill Mailings (5,600 Accounts at $0.50)602 49450 210 OPERATING SUPPLIES27,848 29,840 15,160 26,500 28,500 See Detailed Attachment602 49450 216 CHEMICAL SUPPLIES87,645 160,013 143,959 227,800 284,400 See Detailed Attachment602 49450 220 REPAIRS/MAINT SUPPLIES78,409 68,905 75,592 63,000 128,700 See Detailed Attachment602 49450 225 UNIFORMS/CLOTHING ALLOWANCE3,210 3,126 2,588 3,025 3,625 See Detailed Attachment602 49450 227 SAFETY SUPPLIES10,025 10,893 3,135 7,500 7,500 60249450 240 SMALL TOOLS/EQUIPMENT15,468 15,138 2,780 12,000 12,000 602 49450 298 W/S FLEET EXPENSES7,711 18,073 - 20,000 20,000 TOTAL - SUPPLIES260,897 346,702 265,155 401,655 531,593 49450 - Sanitary Sewer Utility FundAccount NumberY:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUTSewer FundSanitary Sewer - 1 City of OtsegoEnterprise Fund Budget - 2024Department RequestsSanitary Sewer UtilityRequestedActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2021 2022 2023 2023 2024 Comments49450 - Sanitary Sewer Utility FundAccount Number602 49450 301 LEGAL SERVICES11,197 4,982 1,751 7,000 6,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)602 49450 302 ENGINEERING FEES2,060,306 60,572 25,641 51,000 40,000 See Detailed Attachment602 49450 303 PLANNING FEES2,375 3,075 450 3,000 2,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)602 49450 306 PERMIT & FEES18,200 10,200 7,350 11,800 11,800 See Detailed Attachment602 49450 309 SOFTWARE & SUPPORT1,700 194 140 - - 602 49450 315 GIS SERVICES7,310 1,930 4,917 5,000 5,000 602 49450 320 TELEPHONE8,068 11,513 11,300 13,500 19,200 See Detailed Attachment602 49450 321 MILEAGE/TRAVEL376 617 1,482 500 750 602 49450 322 UTILITIES296,494 371,595 315,177 285,000 347,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)602 49450 325 GARBAGE SERVICE27,603 32,040 23,413 26,000 30,000 Estimated - Represents Average of Actuals for 2021-2023 (YTD)602 49450 350 PRINT & PUBLISHING190 246 161 300 300 Statutory Publish Requirements (Budget & Financial Statements)602 49450 355 DUES & MEMBERSHIPS372 - - 65 - 602 49450 360 EDUCATION/TRAINING/CONFERENCES5,761 4,085 5,927 6,650 7,150 See Detailed Attachment602 49450 361 LIABILITY AND PROPERTY INSURAN40,588 51,997 123,375 66,985 78,831 Based on Actual 2023-2024 Premiums + 3% Inflation602 49450 390 CONTRACTED SERVICES167,635 175,321 155,872 180,500 227,300 See Detailed Attachment602 49450 402 REPAIRS/MAINT BUILDINGS- 762 738 10,000 10,000 West WWTF Chemical Doors & Gutters602 49450 410 RENTALS3,578 1,648 1,647 2,465 2,696 Folding & Envelope Stuffing Machine - Lease Payments & R/M Allowance602 49450 419 BIOSOLIDS HAULING266,404 95,867 32,452 24,960 41,000 See Detailed Attachment602 49450 437 BANK SERVICE CHARGES41,252 47,168 41,701 40,950 48,300 Estimated - Represents Average of Actuals for 2021-2023 (YTD) + 5%TOTAL - SERVICES & OTHER CHARGES2,959,408 873,812 753,495 735,675 877,327 602 49450 500 CAPITAL OUTLAY (GENERAL)- 671 559 1,000 1,000 IT Equipment - Computer Additions and Replacements602 49450 501 EQUIPMENT18,336 898 1,648 15,000 2,150 Zero Turn Mower - Purchase from Parks Department602 49450 530 IMPROVEMENTS OTHER THAN BLDG6,235,804 4,157,156 10,585,549 22,560,000 15,640,000 See Detailed Attachment602 49450 550 MOTOR VEHICLES26,615 324,415 109,459 172,500 147,160 See Detailed Attachment602 49450 590 REHABILITATION & REPLACEMENT18,718 38,582 28,999 275,000 300,000 See Detailed Attachment602 49450 599 CAPITALIZED ASSET OFFSET(8,298,294) (4,449,186) - - - TOTAL - CAPITAL OUTLAY(1,998,820) 72,537 10,726,213 23,023,500 16,090,310 602 49450 420 DEPRECIATION1,066,215 1,528,402 - 2,402,810 2,809,011 Based on 2023 Utility Rate Study602 49450 601 BOND PRINCIPAL- - 786,866 817,000 1,468,359 Debt Service - 2020 PFA + 2023 PFA602 49450 602 BOND INTEREST153,044 318,782 984,519 988,652 965,556 Debt Service - 2020 PFA + 2023 PFA602 49450 620 FISCAL AGENT FEES- 200,332 495 - 500 602 49450 720 OPERATING TRANSFERS272,565 220,125 240,450 352,243 320,250 Administrative Contribution to General FundTOTAL - OTHER1,491,824 2,267,641 2,012,330 4,560,705 5,563,676 TOTAL - EXPENSES3,210,708 4,186,944 14,273,136 29,371,999 23,935,458 NET INCOME / (LOSS)1,406,324$ 15,958$ (9,825,324)$ (20,628,999)$ (4,647,113)$ Y:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUTSewer FundSanitary Sewer - 2 City of OtsegoEnterprise Fund Budget - 2024Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudget Budget2023 2024 Item Detail / Description Comments24,000$ 10,000$ Facility Operations & Preventative Maintenance Supplies2,500 3,000 Collection System / Lift Stations Operations & Maintenance Supplies- 10,000 Oil & Grease- 5,500 Filters- - 26,500 28,500 64,700$ 66,300$ Ferric Chloride - Phosphorous Removal 18,500 20,900 Polymer - Belt Thickening Process66,242 73,000 Lime - Solids Processing76,790 90,600 Polymer - Solids Processing685 700 Sulfamic Acid - Solids Processing- 23,600 Bleach- 5,300 Citric Acid883 4,000 Freight and Rounding227,800 284,400 15,000$ 17,000$ East Wastewater Treatment Faciltiy Corrective Maintenance15,000 17,000 West Wastewater Treatment Facility Corrective Maintenance8,000 12,000 Lift Stations Corrective Maintenance15,000 60,200 Collection System Corrective Maintenance (Ex. Chimney Replacements)10,000 - Disinfection Process Maintenance- 2,000 Solids Handling Apparatus, Hoses, and Fittings- 8,000 Combination Unit - Nozzles, Jet Line, Clamps, and Screens- 4,000 Forcemain & Air Releif Valve Maintenance- 5,500 East WWTF Transfer/Phase Monitor Replacement- 3,000 Landscaping - Spruce Trees for Screening- - 63,000 128,700 1,900$ 2,100$ Clothing Allowance = $400 x 9 Operators & $600 x 1 New Hire (50% Allocation)675 1,000 Boot Allowance = $200 x 10 Operators (50% Allocation)225 225 Clothing Allowance = $150 x 3 Seasonal Operators (50% Allocation)225 300 Boot Allowance = $200 x 3 Seasonal Operators (50% Allocation)- - 3,025 3,625 30,000$ 25,000$ General Sewer Engineering (Regulatory, Collection System, Consultation)21,000 15,000 AE2S - Instrumentation Services- - 51,000 40,000 5,900$ 5,900$ MPCA - Municipal Permit Annual Fee - East WWTF5,900 5,900 MPCA - Municipal Permit Annual Fee - West WWTF- - 11,800 11,800 Bleach and Citric Acid are 2024 additions, incorporating new chemicals for the West WWTF membrane process.Repair and maintenance related to aging equipment and infrastucture. Mill and Overlay Street Projects increased number of collection system repairs within the project areas.602-49450-225UNIFORMS/CLOTHING ALLOWANCE602-49450-306602-49450-220Account No. & Description602-49450-210OPERATING SUPPLIES602-49450-216CHEMICAL SUPPLIESR/M SUPPLIES602-49450-302ENGINEERING FEESPERMITS & FEESY:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUT602-DetailSanitary Sewer - 3 City of OtsegoEnterprise Fund Budget - 2024Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudget Budget2023 2024 Item Detail / Description CommentsAccount No. & Description5,145$ 5,550$ Employee Cell Phones ($45 x 10) + Replacement Phones ($2,000) - Allocated 75%960 984 CenturyLink Alarm Phone Lines at Facilities ($82 Per Month)780 960 Answering Service ($80 Monthly)1,200 1,200 Land Line Telephone Service ($100 Monthly)720 720 Tablet's Data Plan ($40 x 2) - Allocated 75%1,080 1,080 WIN-911 Remote Monitoring Mobile Application - Allocated 50%3,600 3,600 Charter Communications - Internet Services for WWTF - (~$300 Per Month)- 5,040 SCADA System Data Plans ($40 x 14) - Allocated 25%15 66 Rounding13,500 19,200 2,000$ 1,900$ Citywide Safety Program Training & LMC Learn3,150 3,000 Operator Certification Licensing and Training ($300 x 10 Operators)1,500 - Leadership & Supervisory Training- 2,250 Commercial Drivers License - Training and Certification - Allocated 75%6,650 7,150 50,000$ 55,000$ East & West WWTF Permit Required Certified Lab Analysis54,983 53,452 Locates (Hakanson) - Based on 2021 - 2023 YTD Monthly Average + 5%3,868 3,590 Locates (Gopher One) - Based on 2020 - 2022 YTD Monthly Average + 5% 12,000 15,000 Electrical6,000 6,000 Security Monitoring & Fire Monitoring 2,200 6,000 Lawn Services - Spraying 4,500 5,500 Equipment inspections / Testing - Generators 10,000 35,000 Collection System Repairs 7,000 7,500 Mechanical - Heating & Air Conditioning 400 400 800Mhz Infrastructure fees ($100 per radio) Wright County1,000 3,000 Collection System Inspections & Cleaning - Video Camera Services2,000 2,200 Meter Calibrations3,000 4,000 VFD Inspections & Preventative Maintenance5,220 5,220 Aveva WonderWare Customer Support Agreement - 50% Allocation750 750 OpWorks Software Agreement - 50% Allocation1,080 - Win911 Subscription16,500 - Rate Study (50% Allocation)- 2,800 Feenics Card Access Management- 6,500 RICE NESHAP Testing (West WWTF Generator)- 300 Toxic Sensor Testing- 15,000 Pipe Channel & Manhole Liners(1) 88 Rounding Contingency + Inflationary Factor- - 180,500 227,300 3,600$ 25,000$ Landfill Disposal - East WWTF Biosolids Material21,360 16,000 Contracted Transportation of Rolloff Containers- - 24,960 41,000 602-49450-419BIOSOLIDS HAULING/DISPOSAL602-49450-390CONTRACTED SERVICESRICE NESHAP Testing for the West WWTF Stationary Generator occurs on a 5 year frequency ensuring emmision compliance and ability to maintain peak shaving benefits. Forcemain Repairs scheduled in 2024 to unplug certain sections of pipe. Lining of damaged infrastructure prevents further deterioration and structural integrity, generally chemical or sewer gas correction.602-49450-360EDUCATION / TRAINING / CONFERENCE602-49450-320TELEPHONEY:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUT602-DetailSanitary Sewer - 4 City of OtsegoEnterprise Fund Budget - 2024Detail of Line Item RequestsSanitary Sewer UtilityRequestedBudget Budget2023 2024 Item Detail / Description CommentsAccount No. & Description22,000,000$ 15,000,000$ West WWT Liquids Capacity Expansion500,000 - West WWTF Access Road60,000 40,000 Annual Lift Station Equipment Inspection and Reconditioning- 600,000 Sanitary Collection System Extension - Windsong to Kadler Avenue- - 22,560,000 15,640,000 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)- 53,809 Portable Generator Trailer (50% Allocation)- 52,500 3/4 Ton Extended Cab Pickup + Plow Equipment (75% Allocation)- 40,851 XUV Utility Vehicle (100% Allocation- - 172,500 147,160 275,000$ 26,500$ Ongoing investment for costs of R&R as identified in Wastewater Treatment Master Plan.- 50,000 Odor Control Media Changeout- 20,000 Pretreatment Equipment - Meters, Screens, and Grit Removal- 15,000 Disinfection Process Related- 20,000 Aeration Equipment- 20,000 Lift Station Access Hatch & Safety Grading- 30,000 Solids Equipment- 100,000 Pretreatment Lining- 3,500 Flow Meter Replacement- 15,000 Communication Equipment- - 275,000 300,000 602-49450-550MOTOR VEHICLES602-49450-530IMPROVEMENTS OTHER THAN BUILDINGS602-49450-590REHABILITATION & REPLACEMENTY:\Budget\2024\Utility Funds\2024 UTILITY BUDGETS INPUT602-DetailSanitary Sewer - 5 City of OtsegoDebt Service Fund Budget - 2024Fund 361 - G.O. Revenue Refunding Bonds, Series 2019A & Series 2021BWater & Sanitary Sewer Infrastructure + BuildingsRequestedActual Actual Year-to-Date Budget BudgetFund Department Object Account Description 2021 2022 2023 2023 2024Revenues361 47000 34407 SEWER AVAILABILITY + CONNECTION CHARGES 4,681,816$ 4,457,412$ 2,729,368$ 3,012,412$ 2,910,960$ 361 47000 36100 SPECIAL ASSESSMENTS 25,104 802,630 159,442 333,449 295,032 361 47000 36210 INVESTMENT EARNINGS 189,253 301,128 - - - 361 47000 36213 INVESTMENT FAIR MARKET VALUE ADJUSTMENT (317,514) (897,259) - - - 361 47000 39200 TRANSFERS IN 90,240 - - - - TOTAL 4,668,899 4,663,911 2,888,811 3,345,861 3,205,992 Expenditures361 47000 390 CONTRACTED SERVICES - - 11,534 - - 361 47000 510 LAND ACQUISITION / EASEMENTS - - 9,194 - - 361 47000 601 PRINCIPAL - - 1,619,200 1,619,200 1,334,400 361 47000 602 INTEREST 374,294 323,817 252,480 252,480 171,520 361 47000 620 FISCAL AGENT FEE'S 43,136 812 634 1,500 1,000 361 47000 650 DEBT SERVICE AMORTIZATION'S (98,311) (207,249) - (180,679) (207,249) TOTAL 319,119 117,381 1,893,041 1,692,501 1,299,671 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES4,349,779$ 4,546,530$ 995,769$ 1,653,360$ 1,906,321$ Fund 361 - G.O. Revenue Refunding Bonds, Series 2019A & 2021BAccount NumberSanitary Sewer - 6 Capital Improvement PlanCity of Otsego, MinnesotaPROJECTS BY FUNDING SOURCE2024 2033thruTotal2024 2025 2026 2027 2028Source2029 2030 2031 2032 2033 #602 - Sanitary Sewer Utility52,50052,5003/4 Ton Extended Cab PickupFLEET-24-0540,85140,851Utility VehicleFLEET-24-0653,80953,809Portable Generator TrailerFLEET-24-071,467,99467,500 549,000 360,000 61,500 98,250 75,750 75,000180,9942025-2033 Future Fleet - Public UtilitiesFLEET-25-0419,100,00015,000,000 4,100,000West WWTF Liquids Capacity ExpansionSEWER-23-01600,000600,000Sanitary Extension - Windsong to KadlerSEWER-24-013,013,00040,000 180,000 600,000 103,000 135,000 215,000 750,000 100,000 135,000755,000Lift Station Equipment & ReconditioningSEWER-24-33575,000575,000Sanitary Extensions - FutureSEWER-25-331,900,000700,000 1,200,000West WWTF - Access RoadSEWER-26-012,200,000200,000 2,000,000Lift Station - New Municipal Sanitary Lift StationSEWER-26-022,500,000250,000 2,250,000WWTF Equipment & Process ImprovementsSEWER-29-016,700,000400,000 2,000,000 4,000,000 300,000East WWTF - EL1 ExpansionSEWER-30-012,800,000200,000 2,600,000Lift Station - New Municipal Sanitary Lift StationSEWER-32-01250,000250,000West WWTF - Solids ProcessingSEWER-34-01100,000100,000Lift Station - New Municipal Sanitary Lift StationSEWER-34-02602 - Sanitary Sewer Utility Total41,353,15415,787,160 5,247,500 4,924,000 463,000 846,500 4,563,250 4,825,750 600,000 2,810,000 1,285,99415,787,160 5,247,500 4,924,000 463,000 846,50041,353,154GRAND TOTAL4,563,250 4,825,750 600,000 2,810,000 1,285,994Sanitary Sewer - 7 City of OtsegoSewer Utility FundCash Flow SummaryRevised: November 21, 2023Rate Increase10.00% 10.00% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Based on Ehlers Utility Rate StudyActual Forecast Budget202220232024202520262027202820292030203120322033CommentsSanitary Sewer FundUser Charges3,476,471$ 3,955,685$ 4,213,345$ 4,564,995$ 4,940,242$ 5,340,111$ 5,765,602$ 6,217,737$ 6,697,542$ 7,210,638$ 7,753,693$ 8,332,618$ 2024-2033 Rate Study - Less PenaltiesPenalties62,598 89,348 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 2024 Budget - Then StagnantInvestment Interest (Net)(207,826) - - - - - - - - - - - Non-Operating4,735 741,947 5,000 - - - - - - - - - Bond Proceeds26,413,506 14,945,359 15,000,000 4,100,000 2,000,000 - - - 3,000,000 - - - $34.045M PFA Note + Projected Bond IssuancesSAC FundConnection Fees4,457,412 2,729,368 2,910,960 2,940,098 2,969,613 2,999,405 3,029,474 3,059,920 3,090,643 3,121,643 3,153,020 3,184,674 Assumes Rate Adjustments (1% Annually)Special Assessments802,630 333,410 295,032 286,967 257,310 246,844 120,924 116,301 - - - - Current Levied SAC AssessmentsInvestment Interest(596,131) - - - - - - - - - - - Total34,413,395 22,795,117 22,494,337 11,962,060 10,237,165 8,656,360 8,986,000 9,463,958 12,858,185 10,402,281 10,976,713 11,587,292 ExpensesPersonal Servcies626,252 650,464 872,552 1,050,641 1,234,073 1,347,051 1,463,419 1,583,278 1,630,776 1,755,656 1,884,282 2,016,766 2024 Budget - Additions Per Staff Plan - Then 3% InflationSupplies346,704 401,655 531,593 542,225 553,069 564,131 575,413 586,922 598,660 610,633 622,846 635,303 2024 Budget - Then 2% InflationInsurance51,997 66,985 78,831 80,408 82,016 83,656 85,329 87,036 88,777 90,552 92,363 94,210 2024 Budget - Then 2% InflationUtilities371,595 285,000 347,000 357,410 368,132 379,176 390,552 402,268 414,336 426,766 439,569 452,756 2024 Budget - Then 3% InflationServices & Other Charges450,220 383,690 451,496 465,041 478,992 493,362 508,163 523,408 539,110 555,283 571,942 589,100 2024 Budget - Then 3% InflationDepreciation1,528,402 2,402,810 2,809,011 2,951,123 3,086,969 3,108,769 3,141,521 3,273,900 3,415,308 3,443,733 3,547,045 3,653,456 Based on 2023 Utility Rate StudyDebt Service - Principal2,292,800 - - - - - - - - - ActualsDebt Service - Interest556,538 - - - - - - - - - ActualsDebt Service - Fiscal Agent Fees201,144 - - - - - - - - - ActualsCapital Outlay4,483,140 - - - - - - - - - - - ActualsCapital Outlay (General)- 16,000 3,150 - - - - - - - - - 2024 BudgetCapital Outlay (Fleet CIP)- 172,500 147,160 67,500 549,000 360,000 61,500 98,250 75,750 - 75,000 180,994 2024-2033 CIP ADDITIONS (ALLOCATED 75%)Capital Outlay (Current CIP)- 22,560,000 15,640,000 5,180,000 4,375,000 103,000 785,000 4,465,000 4,750,000 600,000 2,735,000 1,105,000 2024-2033 CIPCapital Outlay (R & R Plan)38,582 275,000 300,000 325,000 350,000 375,000 400,000 425,000 450,000 450,000 450,000 450,000 Based on Master PlanDebt Service (2019A)- 90,240 480,640 989,824 988,416 - - - - - - - Principal & Interest per Amortization ScheduleDebt Service (2020 PFA)- 968,095 967,409 967,179 967,844 967,394 967,839 967,167 967,392 967,500 967,492 967,368 Based on Final Amortization (6-28-2023)Debt Service (2021B)- 1,781,440 1,025,280 366,880 366,240 - - - - - - - Principal & Interest per Amortization ScheduleDebt Service (2022A)- 869,283 - - - - - - - - - - Interest per Amortization Schedule (Principal Paid by PFA)Debt Service (2023 PFA)- - 1,466,507 2,297,766 2,297,414 2,297,981 2,297,412 2,297,705 2,297,804 2,297,681 2,297,307 2,297,653 Estimated PFA Amortization ($34.045 M)Debt Service (Projected)- - - - 575,831 575,831 575,831 575,831 575,831 874,708 874,708 874,708 Estimated Debt Service on Projected Bond IssuesTransfers Out - General Fund220,125 240,450 320,250 329,858 339,753 349,946 360,444 371,258 382,395 393,867 405,683 417,854 General Fund - Administrative Functions (Inflates 3%)Total11,167,499 31,163,612 25,440,879 15,970,854 16,612,750 11,005,297 11,612,423 15,657,021 16,186,139 12,466,379 14,963,237 13,735,168 Cash Balance - Beginning16,800,793 41,766,782 35,801,097 35,663,566 34,605,895 31,317,279 32,077,111 32,592,209 29,673,046 29,760,400 31,140,034 30,700,556 Balance Sheet Effects191,691 Revenues34,413,395 22,795,117 22,494,337 11,962,060 10,237,165 8,656,360 8,986,000 9,463,958 12,858,185 10,402,281 10,976,713 11,587,292 Expenditures(11,167,499) (31,163,612) (25,440,879) (15,970,854) (16,612,750) (11,005,297) (11,612,423) (15,657,021) (16,186,139) (12,466,379) (14,963,237) (13,735,168) Noncash - Depreciation1,528,402 2,402,810 2,809,011 2,951,123 3,086,969 3,108,769 3,141,521 3,273,900 3,415,308 3,443,733 3,547,045 3,653,456 Cash Balance - Ending41,766,782$ 35,801,097$ 35,663,566$ 34,605,895$ 31,317,279$ 32,077,111$ 32,592,209$ 29,673,046$ 29,760,400$ 31,140,034$ 30,700,556$ 32,206,135$ Cash Balance ReserveOperating (100% of Next Year)4,431,054$ 5,410,733$ 5,776,705$ 6,143,005$ 6,326,091$ 6,524,841$ 6,828,068$ 7,069,362$ 7,276,490$ 7,563,730$ 7,859,445$ Debt Service (100% of Next Year)3,709,058 3,939,836 4,621,649 5,195,745 3,841,206 3,841,082 3,840,703 3,841,027 4,139,889 4,139,507 4,139,729 Total Cash Reserve Recommendation 8,140,112 9,350,569 10,398,354 11,338,750 10,167,297 10,365,923 10,668,771 10,910,389 11,416,379 11,703,237 11,999,174 Percentage of Cash Reserve on Hand513.10% 382.88% 342.97% 305.20% 308.02% 309.45% 305.49% 271.97% 260.68% 266.08% 255.86%ProjectedY:\Budget\2024\Cash Flows\Utility FundsCombined Sewer (602+361)Sanitary Sewer - 8 City of OtsegoStorm Water Utility Fund Budget - 2024Department RequestsRequestedActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2021 2022 2023 2023 2024 CommentsRevenues220 49490 31010 CURRENT AD VALOREM TAXES34,000$ 36,000$ 19,000$ 38,000$ 40,000$ TOTAL - OPERATING34,000 36,000 19,000 38,000 40,000 220 49490 36210 INTEREST EARNINGS835 1,640 - - - 220 49490 36213 NET CHANGE IN INVESTMENT FMV(1,400) (4,885) - - - TOTAL - NON OPERATING(565) (3,245) - - - TOTAL - REVENUES33,435 32,755 19,000 38,000 40,000 Expenses220 49490 292 CULVERTS2,530 6,999 419 21,000 21,000 Lump Sum - Replacement of Storm Water CulvertsTOTAL - SUPPLIES2,530 6,999 419 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 - EXPENSES2,530 6,999 419 27,500 27,500 NET INCOME / (LOSS)30,905$ 25,756$ 18,581$ 10,500$ 12,500$ Change ($)2,000 Change (%)19.05%49490 - Storm Water Utility Fund (Out-of-District)Account NumberStorm Water - 1 City of OtsegoStorm Water Utility Fund (Out District)Cash Flow SummaryRevised: November 21, 20235.88% 5.56% 5.26% 5.00% 4.76% 4.55% 4.35% 4.17% 4.00% 3.85% 3.70% 3.57%Actual Forecast Budget2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033RevenuesProperty Taxes 36,000$ 38,000$ 40,000$ 42,000$ 44,000$ 46,000$ 48,000$ 50,000$ 52,000$ 54,000$ 56,000$ 58,000$ Investment Interest (3,246) - - - - - - - - - - - Total 32,754 38,000 40,000 42,000 44,000 46,000 48,000 50,000 52,000 54,000 56,000 58,000 ExpensesSupplies 6,999 419 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 6,999 419 27,500 28,500 29,500 30,500 31,500 32,500 33,500 34,500 35,500 36,500 Cash Balance - Beginning88,841 114,596 152,177 164,677 178,177 192,677 208,177 224,677 242,177 260,677 280,177 300,677 Balance Sheet EffectsRevenues32,754 38,000 40,000 42,000 44,000 46,000 48,000 50,000 52,000 54,000 56,000 58,000 Expenditures(6,999) (419) (27,500) (28,500) (29,500) (30,500) (31,500) (32,500) (33,500) (34,500) (35,500) (36,500) Cash Balance - Ending114,596$ 152,177$ 164,677$ 178,177$ 192,677$ 208,177$ 224,677$ 242,177$ 260,677$ 280,177$ 300,677$ 322,177$ ProjectedY:\Budget\2024\Cash Flows\Utility Funds220-Storm(Out)Storm Water - 2 City of OtsegoStorm Water Utility Fund Budget - 2024Department RequestsRequestedActual Actual Year-to-Date Budget BudgetFund Department Source Account Description 2021 2022 2023 2023 2024 CommentsRevenues222 49490 37500 STORMWATER UTILITY CHARGES90,601$ 102,614$ 105,805$ 105,095$ 135,089$ Based on Cash Flow Projections Spreadsheet222 49490 31900 PENALTIES AND INTEREST(1,542) 1,588 1,991 - - TOTAL - OPERATING89,059 104,202 107,796 105,095 135,089 222 49490 36100 SPECIAL ASSESSMENTS33,141 32,976 18,349 31,986 31,917 Assessment Roll to Wright County222 49490 36210 INTEREST EARNINGS4,850 7,893 - - - 222 49490 36213 NET CHANGE IN INVESTMENT FMV(8,137) (23,519) - - - 222 49490 36232 CAPITAL CONTRIB. DEVELOPERS1,351,740 831,825 - - - 222 49490 39250 TRANSFER IN - CAPITAL ASSETS895 61,500 - - - TOTAL - NON OPERATING1,382,489 910,674 18,349 31,986 31,917 TOTAL - REVENUES1,471,548 1,014,877 126,146 137,081 167,006 Expenses222 49490 119 PAYROLL ALLOCATION13,626 6,538 - 12,000 12,000 Reimbursement Allocation to Streets DepartmentTOTAL - PERSONAL SERVICES13,626 6,538 - 12,000 12,000 222 49490 220 REPAIRS/MAINT SUPPLIES 449 4,801 - 5,000 5,000 Rip-Rap-Rock / FabricTOTAL - SUPPLIES449 4,801 - 5,000 5,000 222 49490 301 LEGAL SERVICES - - - 500 500 222 49490 302 ENGINEERING FEES 28,252 14,193 11,809 20,000 20,000 Annual Costs - Stormwater Pollution Prevention Plan (SWPPP)222 49490 303 PLANNING FEES50 100 - 500 500 222 49490 315 GIS SERVICES- 60 - 1,000 1,000 222 49490 355 DUES & MEMBERSHIPS780 780 1,050 800 1,050 LMC - Annual Stormwater Coalition Contribution222 49490 360 EDUCATION/TRANING/CONFERENCE375 - - 1,000 1,000 222 49490 390 CONTRACTED SERVICES3,166 1,041 1,000 2,500 2,500 Animal Trapping222 49490 441 LICENSES, TAXES & FEES2 5,884 4,618 3,000 3,000 TOTAL - SERVICES & OTHER CHARGES32,625 22,058 18,477 29,300 29,550 222 49490 500 CAPITAL OUTLAY (GENERAL) 2,697 32,200 - - - 222 49490 599 CAPITALIZED ASSET OFFSET - (32,200) - - - TOTAL - CAPITAL OUTLAY2,697 - - - - 222 49490 420 DEPRECIATION 136,318 178,216 - 160,000 200,000 TOTAL - OTHER136,318 178,216 - 160,000 200,000 TOTAL - EXPENSES 185,715 211,612 18,477 206,300 246,550 NET INCOME / (LOSS) 1,285,833$ 803,265$ 107,669$ (69,219)$ (79,544)$ Change ($) (10,325) Change (%) 14.92%49490 - Storm Water Utility Fund (In-District)Account NumberStorm Water - 3 City of OtsegoStorm Water Utility Fund (In District)Cash Flow SummaryRevised: November 21, 2023Actual Forecast Budget2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 CommentsRevenuesCharges for Services 104,202$ 108,562$ 135,089$ 139,142$ 143,316$ 147,615$ 152,044$ 156,605$ 161,303$ 166,142$ 171,127$ 176,261$ Assumes 2% Customer Growth + 1% InflationSpecial Assessments 32,976 31,986 31,917 31,917 31,917 31,917 31,917 31,917 31,917 31,917 31,917 31,917 2024 Budget - Then StagnantInvestment Interest (15,626) - - - - - - - - - - - Total 121,552 140,548 167,006 171,059 175,233 179,532 183,961 188,522 193,220 198,059 203,044 208,178 ExpensesPersonal Services 6,538 12,000 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 2024 Budget - Then 2% InflationSupplies 4,801 5,000 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 2024 Budget - Then 2% InflationEngineering 14,193 20,000 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 2024 Budget - Then 2% InflationOther Charges & Services 7,865 9,300 9,550 9,741 9,936 10,135 10,337 10,544 10,755 10,970 11,189 11,413 2024 Budget - Then 2% InflationDepreciation 178,216 160,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2024 Budget - Then FlatCapital Outlay32,200 - - - - - - - - - - - Total243,813 206,300 246,550 247,481 248,431 249,399 250,387 251,395 252,423 253,471 254,541 255,632 Cash Balance - Beginning450,096 496,994 591,242 711,698 835,276 962,078 1,092,211 1,225,785 1,362,912 1,503,710 1,648,298 1,796,801 Balance Sheet Effects(9,057) Revenues121,552 140,548 167,006 171,059 175,233 179,532 183,961 188,522 193,220 198,059 203,044 208,178 Expenditures(243,813) (206,300) (246,550) (247,481) (248,431) (249,399) (250,387) (251,395) (252,423) (253,471) (254,541) (255,632) Noncash - Depreciation178,216 160,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Cash Balance - Ending496,994$ 591,242$ 711,698$ 835,276$ 962,078$ 1,092,211$ 1,225,785$ 1,362,912$ 1,503,710$ 1,648,298$ 1,796,801$ 1,949,347$ ProjectedY:\Budget\2024\Cash Flows\Utility Funds222-Storm(In)Storm Water - 4 City of Otsego General Fund Budget - 2024 Budget Changes Tracking Total Expenditures - Draft Budget Binder (August 18) 9,559,758$ City Website Design & Development Information Technology 3,160 Contingency Reduction to Better Match Historical Actuals City Council (45,000) Contracted Fire Protection Services Albertville Fire Department - Budget Changes 6,118 Elk River Fire Department - Budget Changes (41,872) Property & Liability Insurance Rates Finalized for 2023-2024 Multiple Departments 8,586 Wages & Benefits Multiple Departments (28,073) Total Expenditures - Preliminary Levy (September 25) 9,462,677 Contracted Assessor Services Reduced Estimate of New Permits from 300 to 250 (3,000) Contracted Building Safety Services Reduced Average Monthly Hours from 343 to 328 (13,500) Wages & Benefits Multiple Departments (25,725) Total Expenditures - Final Budget (December 11th) 9,420,452 Increase or (Decrease) Compared to Draft Budget Book (139,306) Y:\Budget\2024\General Fund\3.0 - 2024 FINAL BUDGETS INPUT City of Otsego Property Tax Levy Calculations Payable 2024 Revised: November 21, 2023 $% $% 2023 2024 Change Change 2024 Change Change General Revenues 5,366,000 6,336,000 970,000 18.08% 6,397,000 1,031,000 19.21% Tax Abatements 74,668 88,224 13,556 18.16% 91,181 16,513 22.12% Debt Service Series 2010B - - - - - Series 2018A 94,416 102,144 7,728 102,144 7,728 Series 2020A 450,000 197,000 (253,000) 197,000 (253,000) City Campus - Phase 1 - 2,006,663 2,006,663 2,055,709 2,055,709 Sub-total 544,416 2,305,807 1,761,391 323.54% 2,354,853 1,810,437 332.55% Capital Reserves Pavement Management 1,100,000 1,000,000 (100,000) 1,000,000 (100,000) Trails Management 65,000 70,000 5,000 70,000 5,000 Parks Equipment 70,000 400,000 330,000 400,000 330,000 Capital Equipment Revolving 477,325 550,393 73,068 550,393 73,068 Fire Reserve 210,000 210,000 - 210,000 - Storm Water 38,000 40,000 2,000 40,000 2,000 Capital Improvements 1,349,614 - (1,349,614) - (1,349,614) City Buildings & Property 35,000 35,000 - 35,000 - Sub-total 3,344,939 2,305,393 (1,039,546) -31.08% 2,305,393 (1,039,546) -31.08% Increase / (Decrease) for Levy Model - - Grand Total 9,330,023 11,035,424 1,705,401 18.28% 11,148,427 1,818,404 19.49% Growth (%) 8.68% Tax Capacity 32,075,441 39,581,316 39,581,316 Growth (%) 27.01% 23.40% 23.40% Net Tax Capacity 31,550,432 38,962,235 38,962,235 Growth (%) 26.95% 23.49% 23.49% Tax Rate 29.572 28.323 28.613 Population 21,289 22,705 22,705 Tax Levy Per Capita 438 486 491 Description 2023 2024 Change ($) Change (%) 2024 Change ($) Change (%) Median Appraised Value 328,710 403,700 74,990 22.81% 403,700 74,990 22.81% Less: MV Exclusion (7,656) (907) (907) Taxable Market Value 321,054 402,793 402,793 Tax Capacity 3,211 4,028 817 25.46% 4,028 817 25.46% Taxing Estimated Estimated Estimated Authority Tax Tax Change ($) Change (%) Tax Change ($) Change (%) City of Otsego 949 1,141 192 20.23% 1,153 204 21.50% Budget Meeting (11-27-2023) Preliminary Tax Levy (9-25-2023) Levy Description Y:\Budget\2024\Property Taxes\Tax Levy Calculations (2024)11-27