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08-30-04 WSMEMO Date: August 26, 2004 To: Mayor & Council From: City Administrator Mike Robertson Re: Proposed 2005 Budget I have enclosed a copy of the proposed 2005 budget. The figures are based upon the direction given staff at the two previous budget workshops. Additional changes to the budget are as follows. The amount listed under Property Taxes on the Revenue Summary is the exact amount needed to balance the budget based on the current numbers. This amount would reflect a tax capacity growth of approximately 110. I have enclosed a resolution (Attachment A) which reflects the exact amount currently needed to balance the budget, plus the on-going amounts needed for bonds and Capital Equipment notes. I have enclosed a memo (Attachment B) which describes the changes to the City's Tax Capacity. Based on the information received from Wright County our Tax Capacity has increased 210. That means the City's 2005 tax levy could be increased an additional $130,000 over what's currently proposed and the City would still have approximately the same tax rate as last year. I have enclosed a memo (Attachment C) which describes those General Fund expenses which have been allocated to the Building Department. That breakdown is also reflected on page 28 of the budget. I have enclosed a memo (Attachment D) which lists those expenses discussed as part of the Street Department discussion at the budget workshop. The primary issue to be resolved at this workshop is setting the preliminary tax levy for 2005. This has to be adopted by September 15, 2004. The preliminary levy can be decreased but it cannot be increased. Council should discuss what it is comfortable with in terms of a levy. An additional issue is the approximately $125-130,000 in 2003 budget surplus money. My recommendation is that this be transferred to the Capital Equipment Fund. This money can be used in the event of any State Aid cuts by the State Legislature in the 2005 session. If there are no cuts affecting Otsego this money can be transferred and used as the Council wishes. This issue does not need to be resolved soon, but should be decided before the end of the year. 0 City of Otsego General Fund Revenue Budget Revenue Summary Thru Proposed 2002 2003 2004 June 30, 2005 Source Description Actual Actual Budget 2004 Budget 31010 Property Taxes $ 1,032,860 $ 1,161,351 $ 1,303,335 $ 63,702 $ 1,445,623 32100 Business Licenses 12,935 11,820 15,000 9,290 15,000 32210 Dog Licenses 165 155 100 270 250 32250 Sign Permits - 1,547 - 440 250 32260 Building Permits 100,000 75,000 82,227 - 82,000 32270 Septic Permits 7,000 - 7,000 - - 32280 Wetland Review - - - - - 32290 Weight Permits 10 - - - - State Grants & Aids - - - 33401 Local Government Aid 56,649 1,170 1,170 - 123,264 33402 Homestead Credit 151,396 168,561 - - - 33404 Recycling Grant - 1,977 - - - 33405 Police Aid 12,265 19,176 12,000 - 14,000 33406 MSA Maintenance 84,411 83,916 95,000 52,644 100,000 33404 Other State Aid 1,872 1,872 - - - 34050 Administrative fees - - 25,000 - 30,000 Administrative fees -Finance 15,000 15,000 34100 CUPNariance 4,922 - 9,000 - 10,000 34102 Subdivision 23,512 80,240 5,000 66,647 10,000 34103 Zone/Ordinance 200 9,060 1,500 - 2,500 34104 Interim Use Permit - - - 34107 Assessment searches 4,810 5,645 5,000 1,270 5,000 34130 Streets 5,194 2,014 7,000 3,272 7,000 34105 Maps/copies 1,260 4,199 3,500 851 3,000 34150 Topo Sales 11,455 17,132 10,000 5,802 10,000 34230 Street Light Fees - Dev. - 18,420 - 14,880 25,000 34201 Mining Fees 1,048 18,616 12,000 - 12,000 34710 Recreation Fees 1,648 - - - - 35101 Fines & Forfeits 25 - - - 36100 Special Assessments - 2,108 - - - 36210 Interest Earnings 23,083 31,997 40,000 21,221 40,000 36230 Donations 810 350 - 160 - 38000 Peavey House Rent 9,860 9,927 6,500 8,050 8,000 38050 Franchise Fees 12,463 19,196 15,000 - 17,500 39000 Other/River Rider Reimb. 3,174 1,533 - 142 - 34408 Clean Up Day 6,483 11,010 6,000 - - 39400 Refunds & Reimbursemei 4,744 1,622 3,195 1,832 - 39500 City Hall Rent 961 - - - - Total Revenue $1,575,215 $1,759,614 $ 1,679,527 $ 250,473 $ 1,975,387 Special Tax Levies 1999 Street Improvements - - 55,000 55,000 1999 Capital Equipment - - 26,000 29,188 Transfer from prior year fund balancE 9,503 67,000 $1,584,718 $1,759,614 $ 1,827,527 $ 250,473 $ 2,059,575 -3- 8/25/2004 City of Otsego General Fund Expenditures Budget Expenditure Summary Department Activity 41560 General Government 41100 Mayor & Council 41400 Administration 41410 Elections 41600 Finance 41550 Assessing 41700 Legal 41530 Planning Commission 41570 Planner 41900 EDA 41940 City Hall 41950 Peavey House Total Public Safety 42100 Police 42150 Police Commission 42410 Building Inspection 42420 Code Enforcement Total Total Community Services Clean Up Day River Rider Transportation 45100 Community Recreation 45200 Park Maintenance Recreation Services 45300 Heritage Preservation Total Other Uses Public Works 41560 Engineering 43200 Street Lighting 43100 Street Maintenance 42710 Animal Control 41610 Recycling Total Community Services Clean Up Day River Rider Transportation 45100 Community Recreation 45200 Park Maintenance Recreation Services 45300 Heritage Preservation Total Other Uses 49360 Transfer to other funds 25,883 - - - Total Expenditures $1,570,061 $1,613,842 $1,827,527 $804,739 Less Allocation to Building Inspections - See Page 30 Net General Fund Expenditures -4- 2,117,837 (58,262) $ 2,059,575 8/25/2004 Thru Proposed 2002 2003 2004 June 30 2005 Actual Actual Budget 2004 Budget $ 35,314 $ 48,283 $ 58,992 $ 18,096 $ 59,642 275,296 251,082 289,365 134,678 358,812 9,512 680 11,000 38 - 51,811 73,128 88,807 38,179 139,842 38,195 39,838 49,733 22,737 53,695 36,615 35,024 30,000 5,395 27,000 4,509 2,715 4,806 162 5,487 38,592 26,459 55,000 36,159 42,500 16,300 9,673 14,000 - 11,000 69,492 78,951 76,930 31,418 82,098 5,192 6,913 - 2,785 - 580,828 572,746 678,633 289,647 780,076 244,820 382,060 465,580 234,142 558,800 - 472 603 661 1,300 13,104 13,691 - - - 257,924 396,223 466,183 234,803 560,100 39,446 37,513 45,000 25,843 42,500 22,720 33,504 35,000 15,598 37,000 603,945 546,840 550,099 216,407 617,562 2,427 3,867 2,750 1,661 3,000 3,954 100 - 3,954 - 672,492 621,824 632,849 263,463 700,062 7,076 9,267 13,000 11,678 13,000 3,174 - 3,195 - - 12,406 9,564 15,000 1,013 38,000 5,349 2,231 13,775 3,642 22,000 4,929 1,987 4,891 493 4,600 32,934 23,049 49,861 16,826 77,600 49360 Transfer to other funds 25,883 - - - Total Expenditures $1,570,061 $1,613,842 $1,827,527 $804,739 Less Allocation to Building Inspections - See Page 30 Net General Fund Expenditures -4- 2,117,837 (58,262) $ 2,059,575 8/25/2004 City of Otsego General Fund Expenditures Budget Mayor & Council Service Activity Number 41100 Code Item Personal Services 101 Salaries & Wages 122 FICA & Medicare Total Personal Services Supplies 203 General supplies 204 Insurance Total Supplies Other Services and Charges 321 Mileage/Travel 355 Dues & Memberships 360 Education/Training/Conf 310 Miscellaneous Total Other Services and Charges Other Uses 801 Contingency Total Service Activity 2002 2003 2004 Actual Actual Budget Thru Proposed June 30, 2005 2004 Budget $ 27,225 $ 25,775 $ 28,000 $ 14,000 $ 28,000 1,729 1,960 2,142 1,071 2,142 28,954 27,735 30,142 15,071 30,142 143 41 200 375 500 4,985 5,709 7,000 150 7,500 732 250 1,650 500 1,500 500 - - - - 6,360 6,000 8,850 1,025 9,500 - 14,548 20,000 2,000 20,000 $ 35,314 $ 48,283 $ 58,992 $ 18,096 $ 59,642 Dues& Memberships include the LMC membership dues which are based on population. The Mayor and Council budget includes a contingency amount of $20,000 which may be used for projects or expenditures not anticipated by the approved budget. -5- 8/25/2004 City of Otsego General Fund Expenditures Budget Administration Service Activity Number 41400 Code Item Personal Services 101 Salaries & Wages 310 Administrative Intern 104 Part-time 121 PERA/ICMA 122 FICA & Medicare 123 Health & Dental 130 Disability Total Personal Services Supplies 201/203 Office supplies 206 Postage Total Supplies Other Services and Charges 204 Insurance 310 Miscellaneous 320 Telephone 321 Mileage 340 Recording Fees 347 Newsletter 348 Maps 350 Printing & Publishing 355 Dues & Memberships 360 Education/Training/Cont. Total Other Services and Charges Contractual Charges 390 Contracted Services 400 R & M - Equipment 410 Rentals (copier/office equip./internet) 430 Miscellaneous Charges 501 Equipment Total Contractual Charges & Services Total Service Activity -6- 8/25/2004 Thru Proposed 2002 2003 2004 June 30, 2005 Actual Actual Budget 2004 Budget $ 141,323 $ 131,251 $ 145,671 $ 81,668 $ 186,000 - - - - 10,000 55 250 12,000 - 12,295 10,657 10,017 5,423 12,057 10,591 8,507 12,827 6,027 14,994 17,231 15,623 27,000 13,500 36,000 1,004 554 1,000 478 - 182,499 166,842 208,515 107,096 259,051 3,936 5,625 5,000 2,916 6,500 2,184 1,696 2,500 665 2,200 6,120 7,321 7,500 3,581 8,700 30,945 25,327 28,000 - 35,561 2,281 4,032 2,500 1,405 2,500 4,270 1,520 1,700 1,287 1,800 170 - 150 - 200 160 460 500 200 500 7,650 8,331 7,500 4,903 8,100 12,765 4,568 5,000 3,107 5,400 4,714 8,358 9,000 3,845 8,500 1,145 1,237 1,000 329 1,000 3,879 2,010 4,000 660 4,000 67,979 55,843 59,350 15,736 67,561 5,042 5,753 3,000 5,642 7,500 394 - - - - 6,400 6,385 6,000 2,623 6,000 6,862 8,938 5,000 - 10,000 18,698 21,076 14,000 8,265 23,500 $ 275,296 $ 251,082 $ 289,365 $ 134,678 $ 358,812 -6- 8/25/2004 Code 103 Election Judges Item 205 Election supplies Total Service Activity City of Otsego General Fund Expenditures Budget Elections Service Activity Number 41410 2002 Actual $ 4,366 $ Thru Proposed 2003 2004 June 30, 2005 Actual Budget 2004 Budget - $ 5,500 $ - $ - 5,146 680 5,500 38 - $ 9,512 $ 680 $ 11,000 $ 38 $ - -7- 8/25/2004 City of Otsego General Fund Expenditures Budget Finance Service Activity Number 41600 2002 2003 2004 Code Item Actual Actual Budget Personal Services 101 Salaries & Wages 104 Part-time 121 PERA/ICMA 122 FICA & Medicare 123 Health & Dental 130 Disability Total Personal Services Supplies 1,557 201/203 General supplies Total Supplies 305 Printed forms 321 Mileage 350 Printing & publishing 355 Dues & memberships 360 Education/Training/Conf. Total Other Services & Charges Contractual Charges and Services 304 Audit 390 Contracted services 400 BDS Annual Support 430 Miscellaneous Total Contractual Charges & Services Total Service Activity Thru Proposed June 30, 2005 2004 Budget $ 20,356 $ 32,561 $ 33,068 $ 16,641 $ 34,500 - - - - 14,000 1,102 1,656 1,829 710 2,682 1,557 2,414 2,530 1,255 3,710 - 6,600 9,000 4,500 9,000 - 211 180 88 - 23,015 43,442 46,607 23,194 63,892 392 144 - 338 500 392 144 - 338 500 - - 500 - 500 - - 100 - - - - 600 - 500 7,650 8,768 10,000 - 18,750 20,754 20,739 30,000 14,647 53,700 - - 1,500 - 1,500 - 35 100 - 1,000 28,404 29,542 41,600 14,647 74,950 $ 51,811 $ 73,128 $ 88,807 $ 38,179 $ 139,842 Contracted services include: Accounting services includes 20 hours per week in 2005 ADP payroll service Total The budget for 2005 includes a new 1/2 time bookkeeper position. $28,500 1,500 $52,000 1,700 $53,700 -8- 8/25/2004 Code Item Personal Services 101 Salaries & Wages 121 PERA 122 FICA & Medicare Total Personal Services Other Services and Charges 360 Education/Training/Conf. Total Other Services and Charges Total Service Activity City of Otsego General Fund Expenditures Budget Assessor Service Activity Number 41550 2002 2003 Actual Actual Thru Proposed 2004 June 30, 2005 Budget 2004 Budget $ 33,910 $ 34,843 $ 43,500 $ 20,090 $ 47,000 1,778 1,958 2,406 1,110 2,599 2,377 2,709 3,328 1,537 3,596 38,065 39,510 49,233 22,737 53,195 130 328 500 - 500 130 328 500 500 $ 38,195 $ 39,838 $ 49,733 $ 22,737 $ 53,695 To UPDATE CALCULATION The City was at 3,650 parcels at August 1, 2003 and 3979 actual parcel's in 2004. We are estimating 4500 parcels in 2005. The budget estimate is $10 (Pete's contract) per parcel plus $2,000 for additional services. IR1I 8/25/2004 City of Otsego General Fund Expenditures Budget Legal Service Activity Number 41700 This estimate is based on the prior year. All application and developer costs are billed to those individuals & businesses and not included in this total. The expenditures budgeted here are the general city legal expenditures. Code enforcement costs are under the code enforcement budget. $3,000 of the $30,000 budget estimate is allocated to the Building Inspections Fund. -10- 8/25/2004 Thru Proposed 2002 2003 2004 June 30, 205 Code Item Actual Actual Budget 2004 Budget Other Services and Charges 301 Legal services $ 36,615 $ 35,024 $ 30,000 $ 5,395 $ 27,000 Total Service Activity $ 36,615 $ 35,024 $ 30,000 $ 5,395 $ 27,000 This estimate is based on the prior year. All application and developer costs are billed to those individuals & businesses and not included in this total. The expenditures budgeted here are the general city legal expenditures. Code enforcement costs are under the code enforcement budget. $3,000 of the $30,000 budget estimate is allocated to the Building Inspections Fund. -10- 8/25/2004 Code Item Personal Services 101 Salaries & Wages 122 FICA & Medicare Total Personal Services Supplies & Other 350 Printing 360 Education/Training/Conf. Total Supplies & Other Total Service Activity City of Otsego General Fund Expenditures Budget Planning Commission Service Activity Number 41530 2002 2003 Actual Actual Thru Proposed 2004 June 30, 2005 Budget 2004 Budget $ 3,920 $ 2,220 $ 4,000 $ - $ 4,400 300 170 306 - 337 4,220 2,390 4,306 - 4,737 57 101 - 162 - 232 224 500 - 750 289 325 500 162 750 $ 4,509 $ 2,715 $ 4,806 $ 162 $ 5,487 The Planning Commission is paid twice each year. The Planning Commission members are paid $20 per meeting. -11- 8/25/2004 City of Otsego General Fund Expenditures Budget Planner Service Activity Number 41570 2002 2003 Code Item Actual Actual Other Services and Charges 302 Planning Services Total Service Activity This budget consists of Thru Proposed 2004 June 30, 2005 Budget 2004 Budget $ 38,592 $ 26,459 55,000 $ 36,159 42,500 20,000 3. Special Projects - $ 38,592 $ 26,459 $ 55,000 $ 36,159 $ 42,500 1. Meetings $ 20,000 $ 20,000 2. General Assignments 10,000 20,000 3. Special Projects - Council -directed 25,000 10,000 Allocation to Building Inspections (7,500) Total As Above $ 55,000 $ 42,500 The budget estimates are provided by the City's Planner. -12- 8/25/2004 City of Otsego General Fund Expenditures Budget Economic Development Authority Service Activity Number 41900 2002 2003 Code Item Actual Actual Personal Services 101 Salaries & Wages 121 PERA 122 FICA & Medicare 123 Health & Dental 130 Disability Total Personal Services Contractual Charges 390 Contracted Services 430 Miscellaneous Charges Development incentives Total Contractual Charges & Services Total Service Activity Thru Proposed 2004 June 30, 2005 Budget 2004 Budget $ 80 $ 5 - - - - 85 - - - - 4,859 - - - - 11,356 9,673 14,000 - 11,000 16,215 9,673 14,000 - 11,000 $ 16,300 $ 9,673 $ 14,000 $ - $ 11,000 The Long Haul Trucking financial assistance is provided for seven years commencing in 1999. The City will make reimbursements not to exceed a total of $45,500. The annual contribution will be made from the proceeds of the annual tax levy and will be equal to the lesser of $6,500 or the City's portion of property taxes collected from the Development property. Financial assistance paid by the City has been $3,162, $2,844, $2,774, $2,924 and $2,491 for the years 1999 - 2003. The Apex Business Center financial assistance is equal to 3.75% of the buildings market value as of 1/2/99. This assistance computes to a total of $69,082. Financial assistance paid by the City has been $5,277, $5,637, $8,435 and $7,182 in the years 2000-2003 and leaves a remaining balance of $42,551 before the payment of the 2004 taxes. Based on the current payout amounts this will be paid out in 5 - 6 years. -13- 8/25/2004 Code Item Personal Services 101 Salaries & Wages 122 FICA & Medicare Total Personal Services Supplies 203 General supplies 220 R & M supplies Total Supplies Other Services and Charges 322 Utilities 410 Rent/Debt Service Total Other Services and Charges Contractual Charges 325 Garbage service 389 Cleaning service 390 Contracted service 400 R & M - Equipment 402 R & M - Building 403 R & M - Improvements 430 Miscellaneous Total Contractual Services Total Service Activity City of Otsego General Fund Expenditures Budget City Hall Service Activity Number 41940 2002 2003 2004 Actual Actual Budqet Thru Proposed June 30, 2005 2004 Budget 650 507 600 333 700 3,143 501 1,750 49 1,750 3,793 1,008 2,350 382 2,450 7,816 9,165 12,000 5,076 12,000 34,488 45,879 36,080 3,470 39,648 42,304 55,044 48,080 8,546 51,648 875 765 1,000 398 1,000 6,581 6,935 10,000 4,350 10,000 10,783 9,380 8,500 11,734 10,000 1,000 457 2,000 150 2,000 4,026 3,752 5,000 4,043 5,000 - - - 256 - 130 1,610 - 1,559 - 23,395 22,899 26,500 22,490 28,000 $ 69,492 $ 78,951 $ 76,930 $ 31,418 $ 82,098 Contracted services include pest control, security services, water services & lawn services The rent/debt service represents the payment due on the EDA bonds which were used to finance the City Hall building. The rent/debt service is reduced by the amount of the payment which will be made from the Building Inspections Fund. The allocation is based on the estimated use of the building by the inspections department which is $9,912. The total EDA building debt for 2005 is estimated at $49,560. The bonds are held by the Bank of Elk River. The balance due on these bonds is $126,000 at December 31, 2004. The final payment on this debt is December 1, 2007. -14- 8/25/2004 Code Item 310 Miscellaneous - OTH 322 Utilities - OTH 400 Repairs & Maintenance Total Service Activity City of Otsego General Fund Expenditures Budget Peavey House and Old Town Hall Service Activity Number 41950 Thru Proposed 2002 2003 2004 June 30, 2005 Actual Actual Budget 2004 Budget $ 3,129 $ 2,642 $ - $ 560 $ - 2,063 2,540 - 2,039 - - 1,731 - 186 - $ 5,192 $ 6,913 $ - $ 2,785 $ - OTH is the Old Town Hall expenses -15- 8/25/2004 Code Item Other Services and Charges 390 Contracted police service Drug Task Force Total Service Activity City of Otsego General Fund Expenditures Budget Police Service Activity Number 42100 2002 2003 Actual Actual Thru Proposed 2004 June 30, 2005 Budget 2004 Budget $ 244,820 $ 382,060 $ 465,580 $ 233,142 $ 557,800 - - - 1,000 1,000 $ 244,820 $ 382,060 $ 465,580 $ 234,142 $ 558,800 The hourly rate for 2004 is $45.50 per hour. Hours increased from 24/day to 32/day as of August 1, 2004. The hourly rate for 2005 is $47.75. We have budgeted for a total of 32 hours coverage each day for 2005 which is the same level of coverage since August 1, 2004. Code Item Personal Services 101 Salaries & Wages 122 FICA & Medicare Actual Actual Total Personal Services Supplies and Other 310 Miscellaneous 350 Printing/Binding $ - $ 400 Total Supplies & Other $ 400 Total City of Otsego General Fund Expenditures Budget Police Commission Service Activity Number 42150 -16- 8/25/2004 Thru Proposed 2002 2003 2004 June 30, 2005 Actual Actual Budget 2004 Budget $ - $ 400 $ 560 $ 400 $ 800 - 72 43 - - - 472 603 400 800 - - - 72 500 - - - 189 - - - - 261 500 $ - $ 472 $ 603 $ 661 $ 1,300 -16- 8/25/2004 City of Otsego General Fund Expenditures Budget Building Inspection Service Activity Number 42410 Thru Proposed 2002 2003 2004 June 30, 2005 Code Item Actual Actual Budget 2004 Budget Other Services and Charges 390 Inspection services $ - $ - $ - $ - $ - Total Service Activity $ - $ - $ - $ - $ - Other Services and Charges The building inspection activities are accounted for in a separate special revenue fund beginning in 2002. City of Otsego General Fund Expenditures Budget Code Enforcement Service Activity Number 42420 Thru Proposed 2002 2003 2004 June 30, 2004 Code Item Actual Actual Budget 2004 Budget 301 Legal service $ 9,746 $ 8,469 $ - $ - $ - 310 Miscellaneous 3,358 5,222 - - - Total Service Activity $ 13,104 $ 13,691 $ - $ - $ - The code enforcement activities are accounted for in a separate special revenue fund beginning in 2004 Both code enforcement and building inspections are accounted for in Fund 250. -17- 8/25/2004 Code Item Other Services and Charges 390 Engineering Services Total Service Activity City of Otsego General Fund Expenditures Budget Engineering Service Activity Number 41560 Thru Proposed 2002 2003 2004 June 30, 2005 Actual Actual Budget 2004 Budget $ 39,446 $ 37,513 $ 45,000 $ 25,843 $ 42,500 $ 39,446 $ 37,513 $ 45,000 $ 25,843 $ 42,500 The engineering department budget has been prepared in consultation with the City's engineering firm. $7,500 of the engineering estimate of $50,000 is allocated to the Building Inspections Fund. All engineering costs related to specific general capital projects are charges to that project/fund and are not included in the general engineering costs of this budget. All application and developer costs are billed to those individuals and businesses and are not included in this total. -18- 8/25/2004 Code Item Other Services and Charges 322 Electrical Services Total Service Activity City of Otsego General Fund Expenditures Budget Street Lighting Service Activity Number 43160 Thru Proposed 2002 2003 2004 June 30, 2005 Actual Actual Budget 2004 Budget $ 22,720 $ 33,504 $ 35,000 $ 15,598 $ 37,000 $ 22,720 $ 33,504 $ 35,000 $ 15,598 $ 37,000 -19- 8/25/2004 City of Otsego General Fund Expenditures Budget Streets & Roads Service Activity Number 43100 Thru Proposed 2002 2003 2004 June 30, 2004 Code Item Actual Actual Budget 2003 Budget Personal Services 101 Salaries & Wages $ 141,095 $ 140,376 $ 131,060 $ 57,075 $ 129,000 102 Overtime 7,355 8,154 7,500 2,835 8,000 210 Part-time 13,100 15,218 15,000 22,454 15,000 121 PERA 7,531 7,678 8,492 4,016 8,406 122 FICA & Medicare 11,819 11,972 11,747 6,336 11,628 123 Health & Dental 17,887 18,126 27,000 13,500 27,000 130 Disability 1,250 1,303 1,000 805 - 83,500 Total Personal Services 200,037 202,827 201,799 107,020 199,034 Supplies 202 Gas, oil & propane 15,394 18,967 25,000 8,628 24,000 203 General supplies 3,851 6,680 5,000 3,757 7,000 210 Operating supplies 924 3,673 1,000 252 1,000 220 R & M supplies 40,789 37,922 42,000 14,664 44,000 392 Culverts 397 320 5,000 - 2,500 393 Street signs 9,913 5,723 5,000 1,254 5,000 360 Total Supplies 560 71,268 73,285 83,000 28,555 83,500 Other Services and Charges 225 Uniforms 4,389 4,634 4,500 1,674 4,500 204 Insurance/W.Comp. 7,132 13,890 7,300 - 13,340 240 Small tools 18,442 623 1,500 517 1,750 310 Miscellaneous 6,296 3,838 5,000 2,602 5,000 320 Telephone/Comm. 1,456 1,407 1,500 890 1,750 322 Utilities 3,155 3,908 5,000 3,182 6,000 360 Education/training/conf. 560 750 1,000 750 1,000 370 Sand & gravel - 12,049 1,000 915 2,000 373 Salt & sand 43,292 43,289 45,000 38,845 50,000 394 Rock 1,155 292 1,500 - 1,500 Total Other Services and Charges 85,877 84,680 73,300 49,375 86,840 -20- 8/25/2004 City of Otsego General Fund Expenditures Budget Streets & Roads Service Activity Number 43100 Capital Outlay 501 Equipment - Lease/CI payment 2003 Single Axle 3,891 56,763 55,000 - 29,188 Total Capital Outlay 3,891 56,763 55,000 - 29,188 Total Service Activity $ 603,945 $ 546,840 $ 550,099 $ 216,407 $ 617,562 The debt service contribution for the 1999 overlay has been adjusted to reflect transfers and prepaid special assessments since 1999. The City's share of the 1999 Overlay is estimated at $55,000 annually. The $55,000 is financed by a special levy as authorized by current tax law. The $55,000 tax levy is reported as revenue on the Revenue Summary on page 3. A new five year lease for the plow truck started in 2000 and will be paid from a special tax levy. The special tax levy is included in the revenue summary on page 3. -21- 8/25/2004 Proposed Thru Proposed 2002 2003 2004 June 30, 2005 Code Item Actual Actual Budget 2004 Budget Contractual Charges 302 Engineering 6,771 - - - - 390 Contracted services 205 3,381 - - - 400 R & M - Equipment 17,915 1,318 - 22,103 20,000 403 R & M - Other Than Bldg - - - - - 410 Rentals 2,847 242 - 379 - 430 Misc. Other Charges - - - - - 431 Bituminous overlay - - - - - 431 Gravel contracting - - - - - 432 Sealcoating 39,293 46,877 73,000 - 80,000 433 Crackfilling 85 - 9,000 735 15,000 436 Dust coating 41,170 - - - 40,000 1999 Overlay Projects 123,000 70,000 55,000 - 55,000 (For Debt Service) - - - - - 434 Blacktop patch 6,378 1,107 - 1,008 1,000 435 Street sweeping 5,208 6,360 - 7,232 8,000 Total Contractual Charges & Services 242,872 129,285 137,000 31,457 219,000 Capital Outlay 501 Equipment - Lease/CI payment 2003 Single Axle 3,891 56,763 55,000 - 29,188 Total Capital Outlay 3,891 56,763 55,000 - 29,188 Total Service Activity $ 603,945 $ 546,840 $ 550,099 $ 216,407 $ 617,562 The debt service contribution for the 1999 overlay has been adjusted to reflect transfers and prepaid special assessments since 1999. The City's share of the 1999 Overlay is estimated at $55,000 annually. The $55,000 is financed by a special levy as authorized by current tax law. The $55,000 tax levy is reported as revenue on the Revenue Summary on page 3. A new five year lease for the plow truck started in 2000 and will be paid from a special tax levy. The special tax levy is included in the revenue summary on page 3. -21- 8/25/2004 Code Item Other Services and Charges 390 Animal control services Total Service Activity City of Otsego General Fund Expenditures Budget Animal Control Service Activity Number 42710 -22- 8/25/2004 Thru Proposed 2002 2003 2004 June 30, 2005 Actual Actual Budget 2004 Budget $ 2,427 $ 3,867 $ 2,750 $ 1,661 $ 3,000 $ 2,427 $ 3,867 $ 2,750 $ 1,661 $ 3,000 -22- 8/25/2004 Code Item Other Services and Charges 203 Supplies 390 Contract services Total Service Activity City of Otsego General Fund Expenditures Budget Recycling Service Activity Number 43610 2002 2003 Actual Actual 2004 expenditure is for recycling containers 3,954 100 $ 3,954 $ 100 Thru Proposed 2004 June 30, 2005 Budget 2004 Budget - 3,954 - $ - $ 3,954 $ - The recycling subsidy by the city was discontinued in 2002. We will continue to include this item in the budget for information purposes. -23- 8/25/2004 Code Item Other Services and Charges City of Otsego General Fund Expenditures Budget Recreation Services - Joint Recreation Board Service Activity Number 45100 2002 2003 2004 Actual Actual Budget Thru Proposed June 30, 2005 2004 Budget 390 Community Rec. prgm $ - $ - $ - $ - $ - Total Service Activity $ - $ - $ - $ - $ - The City discontinued its participation in the Joint Recreation activities in 2002. We will continue to include this item in the budget for its past history. City of Otsego General Fund Expenditures Budget Other Community Service Activities - 43620 & 45400 -24- 8/25/2004 Thru Proposed 2002 2003 2004 June 30, 2005 Code Item Actual Actual Budget 2004 Budget Clean Up Day $ 7,076 $ 9,267 $ 13,000 $ 11,678 $ 13,000 River Rider Transport. $ 3,174 $ - $ 3,195 $ - $ - -24- 8/25/2004 Contracted mowing is the contractual services provided to maintain the City's parks. Ballfield maintenance is the estimated time spent by the City street department in maintaining (raking, chalking, etc.) the City's ballfields. -25- 8/25/2004 City of Otsego General Fund Expenditures Budget Park Maintenance Service Activity Number 45200 Thru Proposed 2002 2003 2004 June 30, 2005 Code Item Actual Actual Budget 2004 Budget Contractual Charges 310 Miscellaneous - - - 662 - 400 R & M equip/park maint. - - 6,000 351 6,000 410 Rentals - 1,996 - - - 390 Contracted mowing 12,406 7,568 9,000 - 20,000 Ballfield maintenance - - - - 12,000 Total Contractual Charges & Services 12,406 9,564 15,000 1,013 38,000 Total Service Activity $ 12,406 $ 9,564 $ 15,000 $ 1,013 $ 38,000 Contracted mowing is the contractual services provided to maintain the City's parks. Ballfield maintenance is the estimated time spent by the City street department in maintaining (raking, chalking, etc.) the City's ballfields. -25- 8/25/2004 City of Otsego Recreation programming is the local activities organized by the Parks Commission, and administered by the Elk River School District's Community Education Office. -26- 8/25/2004 General Fund Expenditures Budget Recreation Services - Park Commission Activities Service Activity Number Thru Proposed 2002 2003 2004 June 30, 2005 Code Item Actual Actual Budget 2004 Budget Personal Services 101 Park Commission $ 630 $ 640 $ 1,200 $ 499 $ 1,000 Total Personal Services 630 640 1,200 499 1,000 Supplies 202 Gas & oil 203 General supplies 1,888 776 - 210 Operating supplies 250 Merchandise for resale 220 R & M supplies Total Supplies 1,888 776 - - - Other Services and Charges 320 Telephone 422 423 178 355 Dues & memberships - 360 Education/training/conf. - 350 Printing & publishing 354 392 Fertilizer/weed control 310 Miscellaneous - 200 Total Other Services and Charges 776 815 - 378 - Contractual Charges 410 Rentals 2,055 - 1,223 440 Recreation programming - - 12,575 1,542 21,000 Total Contractual Charges & Services 2,055 - 12,575 2,765 21,000 Total Service Activity $ 5,349 $ 2,231 $ 13,775 $ 3,642 $ 22,000 Recreation programming is the local activities organized by the Parks Commission, and administered by the Elk River School District's Community Education Office. -26- 8/25/2004 Code Item Personal Services 101 Salaries & wages 122 FICA 126 Medicare Total Personal Services Supplies 203 General supplies 206 Postage 240 Small tools & equipment Total Supplies Other Services & Charges 350 Printing & Publishing 355 Dues & Membership 360 Education/training/conf. 390 Contracted services 310 Miscellaneous Total Other Services and Charges Total Service Activity City of Otsego General Fund Expenditures Budget Heritage Preservation Commission Service Activity Number 45300 2002 2003 Actual Actual $ 570 $ 470 570 470 148 27 148 27 Thru Proposed 2004 June 30, 2005 Budget 2004 Budget $ 1,200 $ 470 $ 1,000 74 - - 17 - - 1,291 470 1,000 3,586 952 2,000 - 2,000 55 20 100 - 100 - 145 500 - 500 504 160 1,000 - 1,000 66 213 - 23 - 4,211 1,490 3,600 23 3,600 $ 4,929 $ 1,987 $ 4,891 $ 493 $ 4,600 -27- 8/25/2004 City of Otsego Allocation of Expenditures between General Fund and Building Inspections Fund 2005 Budget -28- % Allocation Total To The 2005 Expenditure Allocation To Building Estimated Building Expenditures Line Item Inspections Expenditure Inspection General City Administrator (Includes salary, taxes and benefits) 10% $ 91,708 $ 9,171 $ 82,537 City Clerk (Includes salary, taxes and benefits) 10% 63,326 6,333 56,994 Deputy Clerk (Includes salary, taxes and benefits) 20% 52,008 10,402 41,607 Administrative Secretary (Includes salary, taxes and benefits) 50% 40,690 20,345 20,345 Finance (Includes salary, taxes and benefits) 25% 48,047 12,012 36,035 Contracted Services 20% 7,500 1,500 6,000 General Insurance - Workmens Comp. 20% 2,000 400 1,600 Telephone 75% 7,200 5,400 1,800 Newsletter 10% 9,000 900 8,100 '3 10% 6,000 600 5,400 Rent 20% 49,560 9,912 39,648 Engineering 15% 50,000 7,500 42,500 Planning 15% 50,000 7,500 42,500 Legal 10% 30,000 3,000 27,000 Total Expenditures $ 507,040 $ 94,974 $ 412,066 -28- Position Administration Administrator Clerk Deputy Clerk Admin. Sec. Administrative Intern Total Finance Accountant Public Works '3W Director Public Works Public Works Total Building Inspections Gross Pay Rounded FICA 72,000.00 5,508.00 48,000.00 3,672.00 38,000.00 2,907.00 28,000.00 2,142.00 10,000.00 765.00 $ 196,000.00 $ 14,994.00 Total ICMA/ Health & Salary & PERA Dental Benefits 5,200.00 9,000.00 91,708.00 2,654.40 9,000.00 63,326.40 2,101.40 9,000.00 52,008.40 1,548.40 9,000.00 40,690.40 553.00 - 11,318.00 $12,057.20 $ 36,000.00 259,051.20 $ 34,500.00 $ 2,639.25 $ 1,907.85 $ 9,000.00 48,047.10 55,000.00 4,207.50 3,041.50 9,000.00 71,249.00 38,000.00 2,907.00 2,101.40 9,000.00 52,008.40 36,000.00 2,754.00 1,990.80 9,000.00 49,744.80 129,000.00 9,868.50 7,133.70 27,000.00 173,002.20 Bldg Official 64,000.00 4,896.00 Bldg Insp. 46,500.00 3,557.25 Bldg Insp. 50,000.00 3,825.00 Bldg Insp. 50,000.00 3,825.00 Bldg Sec. 30,000.00 2,295.00 Bldg Sec. 28,000.00 2,142.00 Total 268,500.00 20,540.25 Total All Departments $ 628,000.00 $ 48,042.00 3,539.20 9,000.00 81,435.20 2,571.45 9,000.00 61,628.70 2,765.00 9,000.00 65,590.00 2,765.00 9,000.00 65,590.00 1,659.00 9,000.00 42,954.00 1,548.40 9,000.00 40,690.40 14,848.05 54,000.00 357,888.30 $35,946.80 $ 126,000.00 837,988.80 Building Inspection Revenues Building Permits Plan Check Fees Mechanical Permits Plumbing Permits Septic Permits Total Revenues Inspection Department Expenditures City of Otsego Building Inspection Special Revenue Fund 2005 Proposed Budget Thru 2003 2004 30 -Jun Actual Budget 2004 $ 539,772 $ 251,290 $ 261,465 - 60,000 - 125 7,500 27,813 140 7,500 27,278 9,350 7,000 2,550 549,387 333,290 319,106 Proposed 2005 Budget $ 395,685 257,195 55,300 48,482 Personnel costs 77,830 147,480 61,086 268,500 Fica/Medicare 6,759 11,282 4,432 20,540 PERA 2,249 8,156 3,335 14,848 Health Insurance 15,325 27,000 15,994 54,000 General Fund Salary Allocation 58,262 Total Personal Services 102,163 193,918 84,847 416,150 Office Supplies 4,224 5,000 2,206 5,000 Continuing education 1,511 1,220 623 5,000 Dues & memberships 100 250 300 Clothing Allowance 2,500 Software 450 - 5,000 Telephone 4,563 5,000 2,186 5,400 Printing 1,330 3,500 651 3,500 Office Space/Rent 7,675 9,000 - 9,912 Vehicle Operating Expenses 1,249 16,650 3,812 17,500 Professional Services Inspections 134,580 - 2,048 25,000 Engineering 65,783 1,000 5,809 7,500 Planner 10,051 2,000 - 7,500 Legal - 2,000 536 3,000 Computer - - 6,833 1,500 Code enforcement - - 6,329 15,000 Miscellaneous 100 1,900 Office Equipment 49,227 3,168 10,000 Building improvements 39,536 1,039 25,000 Vehicles (4@$27,000) 108,000 Total Expenditures 422,092 239,738 120,337 674,662 Net Revenue (Expenditures) $ 127,295 $ 93,552 $ 198,770 $ 82,000 Note: This is accounted for in a separate Special Revenue Fund and only the net revenue is recorded as a revenue of the General Fund -30- RESOLUTION NO. 2004-?? CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA A RESOLUTION SETTING A PRELIMINARY TAX LEVY OF $1,673,967 FOR 2005 BUDGET APPROPRIATIONS WHEREAS, the Otsego City Council is required by State law to establish a preliminary tax levy for 2005 by September 15, 2004. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA 1. That there is hereby approved for proposed expenditure from general taxes the following sums for the purpose indicated. General Government $1,445,623 1999 Overlay Debt Service $ 55,000 2003 Debt Service $ 267,765 Equipment Certificate $ 29,_1$8 Total Tax Levy $1,797,576 Dated this 13th day of September, 2004 CITY OF OTSEGO Larry Fournier, Mayor ATTEST: Judy Hudson, City Clerk B MEMO Date: August 24, 2004 To: Mayor & Council From: City Administrator Mike Robertson Re: Preliminary 2005 Tax Capacity Estimates Wright County has told us our preliminary Tax Capacity is 6,990,860. This is a 21% increase over last year's Tax Capacity. In 2004 our Tax Capacity was 5,773,409, which was an increase of 33.80 over 2003. In 2003 our Tax Capacity increased 33%. In 2002 it decreased 1% due to tax law changes by the State Legislature. In 2001 it increased 12.8%. In 2000 it increased 9.5%. In 1999 it increased 6.2%. In 1998 it increased 2.6%. cc: City staff taxcap.wps MEMO Date: August 11, 2004 To: Gary Groen From: City Administrator Mike Robertson Re: Budget Breakdown - Administrative Expenses The following Administrative expenses should be accounted for in the Building Department. Telephone 750 City Administrator 10% City Clerk 10% Deputy Clerk 200 Administrative Secretary 50% General Insurance 20% Newsletter 100 Maps 10% Contracted Services 20% Bookkeeper 25% Engineering 15% Planner 15% City Attorney 10% Telephone - An estimated 750 of the phone calls received are building related. City Administrator, City Clerk & Deputy Clerk - Answering phone calls, dealing with builder complaints, answering builders zoning questions. Administrative Secretary - An estimated 50% of the phone calls on the general City phone line are building related. General Liability Insurance - Broken out based on percentage use of the building. Newsletter - An estimated 10% of City Newsletter articles are building related. Maps - An estimated 10% of maps are purchased by builders. Contracted Services - An estimated 20% of contracted services are used by the Building Department, particularly regarding maintenance and trouble shooting of the computer systems. Bookkeeper - An estimated 2.5% of the bookkeeper's time is spent on building related matters, primarily tracking builder's escrows. City Engineer & City Planner - An estimated 15% of the City Engineer and City Planner's non -billable, general City time is spent on building related matters. This does not include specific building related studies. City Attorney - An estimated 10% of the City Attorney's general City time is spent on building related matters. This does not include specific building related studies. Budget05-1 mps 2 L: MEMO Date: August 26, 2004 To: Mayor & Council From: City Administrator Mike Robertson Re: Proposed 2005 Budget Street Department Items At a previous workshop, the Council had asked for a variety of cost estimates for some Street Department items. Those items are listed below. TOOL COSTS Don & Rick estimate that a starter kit of quality tools would cost about $16,000. To duplicate what Don currently has would cost about $35,000. CURRENT PLOW ROUTES A map illustrating the current plow routes is posted in the City Hall lunch room. NEW FURNACE Removal and replacement is estimated at $5,500. INSULATING THE GARAGE Insulation is estimated at $6,500. SALT STORAGE PAD A 40 by 40 salt storage pad is estimated at $3,100. NEW PLOW TRUCK A new plow truck with dump box is estimated at $140- 145,000. They are still putting together a schedule of their current tasks.