ITEM 3.8 City of Otsego - 2016 CAFR (PDF Version)I�
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CITY F 0
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MINNESOTA
Comprehensive Annual Financial Report
For the Year Ended December 31, 2016
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MINNESOTA.
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City of Otsego, Minnesota
Comprehensive Annual Financial Report
For the Year Ended
December 31, 2016
Adam Flaherty
Interim City Administrator
Prepared by:
Finance Department
Member of the:
Government Finance Officers' Association
of the United States and Canada
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CITY OF OTSEGO, MINNESOTA
TABLE OF CONTENTS
Page No.
INTRODUCTORY SECTION
Letter of Transmittal 1
Elected Officials and Administration 8
Organizational Chart 9
Certificate of Achievement 10
FINANCIAL SECTION
Independent Auditor's Report 11
Management's Discussion and Analysis 14
Basic Financial Statements
36
Government -wide Financial Statements
37
Statement of Net Position
28
Statement of Activities
29
Fund Financial Statements
40
Governmental Funds
41
Balance Sheet
30
Reconciliation of the Balance Sheet of the Governmental Funds
77
to the Statement of Net Position
31
Statement of Revenues, Expenditures and Changes in Fund Balances
32
Reconciliation of the Statement of Revenues, Expenditures and Changes in
84
Fund Balances of the Governmental Funds to the Statement of Activities
33
Statement of Revenues, Expenditures and Changes in Fund Balances: Budget -to -Actual
88
General Fund
34
Proprietary Funds
Statement of Net Position
36
Statement of Revenues, Expenses and Changes in Net Position
37
Statement of Cash Flows
38
Fiduciary Funds
72
Statement of Net Position
40
Notes to the Financial Statements
41
Required Supplementary Information
Schedule of Employer's Proportionate Share of Net Pension Liability 67
Schedule of Employer's Contributions 68
Notes to Required Supplementary Information 69
Combining and Individual Fund Statements and Schedules
Governmental Funds
Nonmajor Governmental Funds
Combining Balance Sheet
72
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
73
Nonmajor Special Revenue Funds
Combining Balance Sheet
76
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
77
Nonmajor Capital Projects Funds
Combining Balance Sheet
80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
84
Schedule of Revenues, Expenditures and Changes in Fund Balances: Budget -to -Actual
General Fund
88
Debt Service Fund by Account
Combining Balance Sheet
94
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
96
Fiduciary Funds
Combining Statement of Changes in Agency Fund Assets & Liabilities
98
CITY OF OTSEGO, MINNESOTA
TABLE OF CONTENTS
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component
100
Changes in Net Position
102
Governmental Activities Tax Revenue by Source
108
Fund Balances of Governmental Funds
110
Changes in Fund Balances of Governmental Funds
112
Revenue Capacity
Estimated Actual Value, Taxable Market Value and Tax Capacity of Taxable Property
114
Tax Capacity of Real Estate & Personal Property
116
Property Tax Rates - Direct and Overlapping Governments
117
Principal Property Taxpayers
118
Property Tax Levies and Collections
119
Debt Capacity
Ratios of Outstanding Debt by Type
120
Ratios of General Bonded Debt Outstanding
121
Computation of Direct and Overlapping Governmental Activities Debt
122
Legal Debt Margin Information
124
Pledged Revenue Coverage
126
Demographic and Economic Information
Demographic and Economic Statistics
127
Principal Employment Sectors
128
Operating Information
Full -Time City Government Positions by Function
129
Operating Indicators by Function
130
Capital Asset Statistics by Function
131
i
CITY OF
se o
MINNESOTA
May 24, 2017
Honorable Mayor and Members of the City Council
City of Otsego
Transmitted herewith is the Comprehensive Annual Financial Report of the City of
Otsego for the fiscal year ended December 31, 2016.
Responsibility for both the accuracy of the data and the completeness and fairness of the
presentation, including all disclosures, rests with the management of the City following
the policies and procedures specified by the City's system of internal control. Because
the cost of internal controls should not exceed anticipated benefits, the objective is to
provide reasonable, rather than absolute, assurance that the financial statements are free
of any material misstatements.
To the best of our knowledge and belief, the enclosed data is accurate, in all material
respects, and is reported in a manner designed to present fairly the financial position and
results of operations of the various funds of the City. All disclosures deemed necessary
to enable the reader to gain an understanding of the City's financial activities have been
included.
Minnesota Statutes require that the financial statements of the City be audited annually
by the State Auditor or a Certified Public Accountant selected by the City Council. These
financial statements have been audited by BerganKDV (the Auditors). The Auditors
expressed an unmodified opinion on the financial statements, and their opinion letter is
included as the first component within the financial section of this report.
The Auditors have also issued a number of other reports on compliance with Government
Auditing Standards and Minnesota Legal Compliance. These reports have been issued
under separate cover.
Accounting principles generally accepted in the United States of America require that
management provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of a Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be
read in conjunction with it. The City's MD&A can be found immediately following the
report of the auditors.
City of Otsego 113400 90th Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-8823
PROFILE OF THE CITY
The first town site in Otsego was originally platted in 1857 in what was once known as
the Big Woods, heavily laden with deciduous trees, and interspersed with rivers, ponds,
and prairies. The first settlers to the area were of European descent settling the area in
1852. On April 5, 1858, Otsego Township was established. The area remained a
township until 1990 when it was incorporated into the City of Otsego to more fully serve
its residents and to manage growth.
Otsego is located at the confluence of the Mississippi and Crow Rivers approximately
thirty miles northwest of Minneapolis. The Mississippi River runs along the northern and
eastern borders of the City and the Crow River runs along the southern border in the far
eastern part of the City until it enters the Mississippi River.
The City is located in the northeast corner of Wright County and covers an area of about
30.5 square miles. The State Demographer's most recent population estimate was
15,472, compared with 6,389 from the 2000 US Census. Otsego is the fastest growing
City in Wright County and outpaces growth in neighboring cities outside Wright County.
The City operates under the "Optional Plan A" form of government as defined in
Minnesota Statutes. Under this plan, the government of the City is directed by a City
Council consisting of an elected mayor and four elected councilmembers at large. The
City Council exercises legislative authority and determines all matters of policy. The
City Council appoints personnel responsible for the proper administration of all affairs
relating to the City. The mayor and councilmembers serve four year terms with two
councilmembers elected to four year terms every two years. The mayor is also elected to
a four year term.
The City provides its residents and businesses a full range of municipal services
consisting of the construction & maintenance of highways, streets, and other
infrastructure, park facilities, recreational opportunities, and general administrative
services. The City services also provide public utilities including water, sanitary sewer
and storm water services accounted for in enterprise funds. Police protection has been
provided for more than 25 years through an agreement with the Wright County Sheriff's
department which provides 40 hours of service each and every day. Fire suppression and
emergency response services are provided through agreements with the neighboring cities
of Albertville, Elk River and Rogers. Each agreement has geographical boundaries based
upon response times, however; all three of the departments have great relationships and
provide for mutual aid whenever the instance warrants.
City of Otsego 113400 90`h Street NE, Otsego, MN 55330 I Tel. (763) 441-4414 Fax (763) 441-8823
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Financial planning and control for the City of Otsego are based on the annual Operating
Budget and the multi-year Capital Improvement Plan. Under Minnesota Statutes, a
preliminary property tax levy must be adopted by the City Council no later than
September 30th of each year for the ensuing year's collection. This establishes a
maximum levy that may subsequently be lowered but may not be increased at time of
final adoption. A ceiling on the increase of the annual property tax levy is established
from time to time by the Minnesota Legislature. Such a limit was not in place for taxes
payable 2016 and 2017.
Effective establishment of this levy means that a preliminary operating budget must be
prepared. The City Administrator, with the assistance of the Finance Director and
management staff, prepares such a budget each year and presents it along with the
preliminary levy for City Council review. The City Council is required to adopt a final
tax levy and annual budget each December for the subsequent year, which begins on
January 1. Departments may make transfers of appropriations within their department.
However, transfers of budget appropriations between departments needs authorization of
the City Administrator. The legal level of budgetary control is at the fund level, so any
appropriation transfers between funds needs the approval of the City Council.
In addition, a Capital Improvement Plan covering a ten year period is reviewed and
revised during the annual budget process. This includes projects for which the City may
issue debt and/or assess portions of the cost to adjacent or benefitting property owners.
Because there are limited funds available each year and the City does not wish to issue
excessive amounts of debt, these projects are reviewed and reprioritized each year.
ECONOMIC CONDITION
Otsego continues to experience strong residential and commercial growth due to its ideal
location. The City is 30 miles from downtown Minneapolis, the center of the Twin Cities
metropolitan area and has excellent transportation access with Interstate 94 and State
Highway 101. The City maintains a Comprehensive Plan document for land use and
development to manage and encourage growth.
The residential growth can be expressed with the 219 new residential construction
permits issued during 2016. The average number of new residential construction permits
through the past five years is 189. The latest estimates from the State Demographer's
office show total households at 5,394 or a growth of 27 percent since 2007.
The City is expecting for this trend in residential housing growth to continue into the
future as well. There have been a number of builders continuing to develop properties
and go through the final platting process. During 2016, there were more than 250
additional residential lots platted, with more than 100 for year-to-date 2017.
City of Otsego 113400 90th Street NE, Otsego, MN 55330 I Tel. (763) 441-4414 Fax (763) 441-8823
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The taxable market value of property within the City increased $136 million to a total of
$1,348,313,400 for taxes payable 2017. According to Wright County, for taxes payable
2017, there was approximately $72 million of value added for new residential and
commercial / industrial development. The remaining portion of the growth would be due
to market driven factors. The increased taxable value translates into increased tax
capacity, and has allowed the City to maintain or slightly decrease the property tax rate in
three consecutive years. The City's tax rate for payable 2017 is 37.921.
Commercial building construction was also strong in 2016, with the completion of three
significant projects. B1uDot expanded their operations within the City by completing an
116,200 square foot expansion of warehouse space. Wagner Spraytech, a new Otsego
business, completed a 270,144 square foot warehouse. These two projects signal the full
build -out on Phase 1 of the Gateway North Industrial Park. The initial project developer
has been in communication with surrounding land -owners to determine if a Phase 2 is
possible in the future.
The third significant commercial project in 2016 was for P&F Machining, who
constructed a 54,000 square foot industrial manufacturing facility. This project started out
as a tax -forfeited parcel with significant impediments to development. The City applied
for and received an infrastructure grant from the Minnesota Department of Employment
and Economic Development which covered 50 percent of the required infrastructure
improvements. The City Council and the developer worked together on the creation of
the City's first tax -increment financing district to help overcome some of the costs
involved with adding soil to the site. Lastly, the developer obtained a job creation grant
with the goal of creating 17 additional jobs. The completion of this project was definitely
a team effort between the City and the developer.
The City is already seeing continued commercial and industrial projects thus far in 2017.
Nystrom & Associates is constructing an office building in the Waterfront East
development, which is expected to open in June. Guardian Angels, a senior services
provider has acquired two parcels in Waterfront East, and has a proposed facility for 143
senior housing units in progress. This project is still under discussion and has not yet
been approved by the City Council. A developer who just recently purchased
approximately 80 acres has brought forth a concept plan that would create new industrial
sites including the ability to have outdoor storage, which is a high demand use in the area.
This industrial park would be located along Kadler Avenue and would also incorporate
street and utility infrastructure projects within the area.
In the Fall of 2017, the City will be welcoming the opening of the third school within the
City. Prairie View Elementary and Middle School will serve early childhood through 8th
grade students from School District 728.
City of Otsego 113400 90th Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-8823
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LONG-TERM FINANCIAL PLANNING
The City has adopted and annually updates a ten-year Capital Improvement Plan (CIP) to
facilitate the growth and maintenance of public infrastructure, community facilities and
capital equipment. Projects in the CIP demonstrate the importance of developing long
range financial planning strategies to facilitate the growth and prosperity of the City. The
process assists with both short and long range financial planning needs by:
• Prioritizing capital projects and equipment acquisitions
• Estimating resource needs and related cash flows
• Identifying adequate and sustainable funding sources
MAJOR INITIATIVES
With all of the growth that has been experienced in Otsego, the major initiatives for the
City are currently to build upon the infrastructure, services and amenities available in the
community.
The City is currently in the planning and design stages for the construction of 85th Street
and Maciver Avenue. This infrastructure project would extend the existing 85th Street
from Nashua Avenue on a westerly course for roughly 1.50 miles. The project also
includes the extension of existing Maciver Avenue from 80th Street on a northerly course
to intersect the 85th street extension mentioned above. This route is especially important
to the community as it will connect existing infrastructure to the new Prairie View
Elementary and Middle School location. The school is expected to open in the Fall of
2017, with road construction scheduled to begin in the Spring of 2018.
The City currently operates two sanitary sewer treatment facilities, which accounts for a
significant capital investment. With the expected growth of Otsego into the future, it was
determined that a master planning process should be conducted. One of the primary
objectives of this master plan will be to determine whether the sites for the existing
sanitary sewer treatment facilities would account for the future growth expected in
Otsego. Upon completion of the study, expected in late summer of 2017, the results will
provide a blue -print to follow for future capital investments within the public sanitary
sewer system.
RELEVANT FINANCIAL POLICIES
The City Council has approved a fund balance policy that established the minimum fund
balance requirements of the General Fund at forty-five percent of the subsequent year's
expenditures. The policy also includes the annual review of the fund balance reserves of
all other funds and the criteria for the use of reserves. Reserve balances are reviewed
annually as part of the budget/financial planning process and at the time the Capital
Improvement Plan is approved by the City Council.
City of Otsego 113400 90"' Street NE, Otsego, MN 55330 I Tel. (763) 441-4414 Fax (763) 441-8823
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Financial management staff of the City of Otsego have developed and implemented
internal controls designed to protect the City's assets from loss, abuse, theft or other
misappropriation. These controls provide reasonable assurance of the safety of the City's
assets while recognizing that management estimates and judgements as to the cost of
such controls are also important to deriving maximum benefit from these controls.
Policies relating to investment of City funds, billing and collection of public utility
charges, management of long term debt, purchasing, fund balances and general
accounting procedures have been developed. In addition, goals and objectives have been
established for internal and external financial reporting and for long-term financial
planning strategies. City Council adoption of these policies, goals and objectives is
pending.
FINANCIAL REPORTING AWARD
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Otsego for its 2015 Comprehensive Annual Financial Report (CAFR). The City first
applied for this award in 2012, and has received the award every year since.
In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. The
report must satisfy both accounting principles generally accepted in the United States and
applicable federal, state and local legal requirements.
A Certificate of Achievement is valid for a period of one year. It is expected that the
2016 report conforms to the Certificate of Achievement program requirements. It will be
submitted to the GFOA to determine the City's eligibility for another Certificate.
ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the expertise and
dedication of the City's staff. Further, the City Council's support to promote and sustain
the highest standards of professionalism in the financial management of the City of
Otsego are acknowledged and appreciated.
Respectfully submitted,
Adam Flaherty
City Administrator & Finance Director
City of Otsego 113400 90t1' Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-8823
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CITY OF OTSEGO, MINNESOTA
ELECTED OFFICIALS AND ADMINISTRATION
ELECTED OFFICIALS
Name
Jessica Stockamp
Jason Warehime
Doug Schroeder
Vern Heidner
Tom Darkenwald
ADMINISTRATION
Position
Mayor
Council Member
Council Member
Council Member
Council Member
Name Position
Tami Loff City Clerk
Adam Flaherty Finance Director / Interim City Administrator
Kevin Lamson Public Works Supervisor
Ross Demant Parks & Recreation Supervisor
Kurt Neidermeir Public Utilities Supervisor
Andrew MacArthur City Attorney
Daniel Licht City Planner
Ron Wagner City Engineer
i
Term Expires
December 31, 2016
December 31, 2016
December 31, 2016
December 31, 2018
December 31, 2018
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Advisory Commissions
Planning
Parks and Recreation
Public Safety
Heritage Preservation
City Clerk
Elections
Human Resources
Payroll
Public Safety
Police
Fire
Building Inspections
Otsego Residents
City Council
City Administrator
Public Utilities 0 0 Parks & Recreation M Public Works
Water' Parks & Trails
Sanitary Sewer Recreation
Storm Water Prairie Center
I!!Administrati!eSvices
Finance
Utility Billing
Information Technology
Customer Service
Streets
Vehicle Fleet
City Buildings
Professional Services
Planning
Engineering
Lega I
uJ
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Otsego
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2015
Executive Director/CEO
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C: berganKDV
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Otsego
Otsego, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of
the City of Otsego, Minnesota, as of and for the year ended December 31, 2016, and the
related notes to financial statements, which collectively comprise the City's basic financial
statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the City's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
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BerganKDV, Ltd.
bergankdv.com
(:berganKov
Opinions
In our opinion, the financial statements referred to in the first paragraph present fairly, in all
material respects, the respective financial position of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of
the City of Otsego, Minnesota, as of December 31, 2016, and the respective changes in
financial position and, where applicable, cash flows thereof and the respective budgeting
comparison for the General Fund for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, which follows this report letter, and Required
Supplementary Information as listed in the Table of Contents be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board (GASB), who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the Required Supplementary Information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the City's basic financial statements. The introductory section,
combining and individual fund financial statements and schedules and statistical section are
presented for purposes of additional analysis and are not a required part of the basic
financial statements.
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C: berganKDV
Other Matters (Continued)
Other Information (Continued)
The combining and individual fund financial statements and schedules are the responsibility
of management and were derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In
our opinion, the combining and individual fund financial statements and schedules are fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The supplementary information contains prior year comparative information taken from the
City's 2015 financial statements. We also have previously audited, in accordance with
auditing standards generally accepted in the United States of America, the City's basic
financial statements for the year ended December 31, 2015, which are not presented with the
accompanying financial statements. In our report dated June 1, 2016, we expressed
unmodified opinions on the respective financial statements of governmental activities,
business type activities, each major fund, and the aggregate remaining fund information. In
our opinion, the 2015 supplementary information is fairly stated in all material respects in
relation to the basic financial statements for the year ended December 31, 2015, taken as a
whole.
The introductory section and statistical section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
May 24, 2017, on our consideration of the City of Otsego's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City of Otsego's internal
control over financial reporting and compliance.
St. Cloud, Minnesota
May 24, 2017
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CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
As management of the City of Otsego, Minnesota, (the City), we offer readers of the City's Comprehensive Annual Financial Report
(CAER), this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2016. We
encourage readers to consider the information presented here in conjunction with additional information that we have furnished in
our letter of transmittal, which can be found on pages 1-6 of this CAFR.
Financial Hiuhlkhts
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $65,280,237 (net position). Of
this amount, $25,994,652 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and
creditors.
• The City's total net position increased by $8,773,291 (15.53%) from the previous year. The net position of the governmental
activities increased $4,663,434 (15.82%). The City received contributed infrastructure from housing and industrial developers
in the amount of $1,287,485, which mostly consists of streets. The City also made an investment in public infrastructure totaling
$2,745,369, consisting of streets, trail systems and park additions. The business -type activities increased $4,109,857 (15.21%),
with the primary reason for the increase being fees received for new connections to the City's public utility system.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$12,939,772, which is an increase of $562,345 (4.54%) from the previous year. This increase was primarily driven by the activity
within the General fund. Of the total fund balance, $3,061,548 (23.66%) is unassigned, which is free from any internal or external
constraints upon its use.
• The General fund has a fund balance of $3,646,202 at the close of the current fiscal year. During 2016, the fund balance
increased $755,679 (26.14%) from the previous year. The primary reason for the increase is that licenses and permits revenue
exceeded budgeted expectations by $1,020,000. In accordance with the City's fund balance policy, a transfer of $460,212 was
made to the Capital Equipment Revolving fund. That policy indicates that any fund balance exceeding 45% of the subsequent
years budget will be transferred, and set aside for future capital expenditures. There is $110,973 (3.04%) of fund balance that is
nonspendable given that it is in the form of prepaid items, and the outlay for those assets has already occurred. The remaining
fund balance is either assigned, $192,408 (5.28%) or is unassigned, $3,342,821 (91.68%).
• The City's total outstanding bonded debt decreased by $3,210,000 (8.60%) during the current fiscal year, to an ending
amount of $34,135,000. The decrease was the result of scheduled debt service payments.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic
financial statements include three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This CAFR also contains other supplementary information in addition to the basic financial statements
themselves.
Government -Wide Financial Statements: The government -wide financial statements are designed to provide readers with a
broad overview of the City's finances, in a manner similar to a private -sector business.
The statement of net position presents information on all of the City's assets, liabilities and deferred inflows/outflows of resources,
with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the City's overall financial position is stable, improving or deteriorating.
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CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
fixture fiscal periods (e.g. uncollected taxes, special assessments and earned but unused personal time off).
Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion
of their costs through user fees and charges (business -type activities). The governmental activities of the City include: general
government, public safety, public works, culture & recreation, economic development, and interest on long-term debt.
The business- type activities of the City include: water utility, sanitary sewer utility and storm water utility.
The government -wide financial statements can be found on pages 28 through 29 of this CAFR.
Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance -related legal requirements. The funds of the City can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare
the information presented for governmental funds with similar information presented for governmental activities in the
government -wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term
financial decisions. Both the governmental funds balance sheet and governmental funds statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains 20 individual governmental funds. Information is presented separately in the governmental funds balance sheet
and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the following: General fund,
and the Debt Service Fund, which are considered to be major funds. Data from the remaining governmental funds are combined into
a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements or schedules, elsewhere in this CAFR.
15
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
The City adopts an annual appropriated budget for the General Fund. A budgetary comparison statement has been provided in
the basic financial statements for the General fund.
The basic governmental fund financial statements can be found on pages 30 through 34 of this CAFR.
Proprietary Funds: Proprietary funds provide similar information to the government -wide financial statements, but in more
detail. The City maintains one type of proprietary fund.
Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial
statements. The City uses enterprise funds to account for its water, sanitary sewer and storm water utilities. All of the City's
enterprise funds are considered to be major funds, and separate information is provided for each of them in the basic financial
statements.
The basic proprietary fund financial statements can be found on pages 36 through 38 of this CAFR
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary
funds are not reflected in the government -wide financial statements because the resources of those funds are not available to
support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The fiduciary fund financial statements can be found on page 40 of this CAFR.
Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data
provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages
41 through 65 of this CAFR.
Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information in relation to the City's net pension liability. The schedules can be found on pages 67 through 69
of this CAFR.
The combining statements referred to earlier in connection with nomnajor governmental funds and agency funds are presented
immediately following the required supplementary information. Combining statements can be found on pages 72 through 98
of this CAFR.
16
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indictor of a government's financial position. In the case of the City,
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $65,280,237 at the close of the most
recent fiscal year.
The largest portion of the City's net position ($34,992,996 or 53.60%) reflects its investment in capital assets, which includes: land,
infrastructure, buildings, and machinery & equipment, less any related debt used to acquire those assets that is still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
CITY OF OTSEGO - SUMMARY OF NET POSITION
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the
government as a whole, as well as for its separate governmental and business -type activities.
A portion of the City's net position (6.58%) represents resources that are subject to external restrictions on how they may be
used. The remaining portion (39.82%) may be used to meet the City's ongoing obligations to citizens and creditors.
The governmental activities capital assets increased significantly from the prior year. The City received contributed infrastructure from
housing and industrial developers in the amount of $1,287,485, which mostly consists of streets. The City also made significant
investments in public infrastructure, including streets, trail systems and park additions.
The business -type activities had a large fluctuation in long-term liabilities and capital assets. During 2016, the City made scheduled
principal payments in the amount of $2,000,000. The City received contributed infrastructure from housing and commercial developers
totalling $1,104,850 for a combination of water, sanitary sewer and storm water utility assets. The City also made significant capital
investments within its public utility systems, most notably in sanitary sewer equipment and solids process handling infrastructure.
17
Governmental Activities
Business -type Activities
Increase
Increase
2016
2015
(Decrease)
2016
2015
(Decrease)
Current Assets
$ 16,718,830
$ 15,918,007
$ 800,823
$ 15,641,034
$ 15,941,662
$ (300,628)
Capital Assets
27,614,559
25,031,455
2,583,104
42,338,114
40,081,570
2,256,544
Total Assets
44,333,389
40,949,462
3,383,927
57,979,148
56,023,232
1,955,916
Deferred Outflows of Resources
551,448
110,776
440,672
127,317
26,328
100,989
Long-term Liabilities
8,748,903
9,398,214
(649,311)
24,724,575
26,727,932
(2,003,357)
Other Liabilities
1,836,587
2,065,284
(228,697)
2,207,509
2,265,347
(57,838)
Total Liabilities
10,585,490
11,463,498
(878,008)
26,932,084
28,993,279
(2,061,195)
Deferred Inflows of Resources
157,198
118,025
39,173
36,293
28,050
8,243
Net Investment in Capital Assets
19,103,702
15,303,426
3,800,276
15,889,294
11,553,869
4,335,425
Restricted
4,292,589
4,547,327
(254,738)
-
-
-
Unrestricted
10,745,858
9,627,962
1,117,896
15,248,794
15,474,362
(225,568)
Total Net Position
$ 34,142,149
$ 29,478,715
$ 4,663,434
$ 31,138,088
$ 27,028,231
$ 4,109,857
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the
government as a whole, as well as for its separate governmental and business -type activities.
A portion of the City's net position (6.58%) represents resources that are subject to external restrictions on how they may be
used. The remaining portion (39.82%) may be used to meet the City's ongoing obligations to citizens and creditors.
The governmental activities capital assets increased significantly from the prior year. The City received contributed infrastructure from
housing and industrial developers in the amount of $1,287,485, which mostly consists of streets. The City also made significant
investments in public infrastructure, including streets, trail systems and park additions.
The business -type activities had a large fluctuation in long-term liabilities and capital assets. During 2016, the City made scheduled
principal payments in the amount of $2,000,000. The City received contributed infrastructure from housing and commercial developers
totalling $1,104,850 for a combination of water, sanitary sewer and storm water utility assets. The City also made significant capital
investments within its public utility systems, most notably in sanitary sewer equipment and solids process handling infrastructure.
17
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
CITY OF OTSEGO - CHANGES IN NET POSITION
Governmental Activities
Business -type Activities
Increase
Increase
2016
2015
(Decrease)
2016
2015
(Decrease)
Program Revenues
Charges for Services
$ 2,475,470
$ 1,526,704
$ 948,766
$ 3,011,546
$ 2,817,217
$ 194,329
Operating Grants and Contributions
248,910
244,497
4,413
-
-
-
Capital Grants and Contributions
4,437,611
3,154,662
1,282,949
4,766,947
2,020,299
2,746,648
General Revenues
Property Taxes
4,963,787
4,602,153
361,634
25,000
25,000
-
Franchise Taxes
131,229
128,722
2,507
-
-
-
Grants and Contributions not
Restricted to Specific Programs
255,951
242,970
12,981
-
-
-
Unrestricted Investment Earnings
82,385
55,909
26,476
129,442
85,259
44,183
Other General Revenues
31,160
35,600
(4,440)
-
-
-
Total Revenues
12,626,503
9,991,217
2,635,286
7,932,935
4,947,775
2,985,160
Expenses
General Government
1,376,793
1,174,510
202,283
-
-
-
Public Safety
1,846,459
1,670,627
175,832
-
-
-
Public Works
3,389,909
6,521,708
(3,131,799)
-
-
-
Culture and Recreation
847,553
792,936
54,617
-
-
-
Economic Development
302,296
145,771
156,525
-
-
-
Interest on Long-term Debt
223,938
231,242
(7,304)
-
-
-
Water Utility
-
-
-
1,276,338
1,246,064
30,274
Sanitary Sewer Utility
-
-
-
2,480,519
2,207,811
272,708
Storm Water Utility
-
-
-
42,342
95,533
(53,191)
Total Expenses
7,986,948
10,536,794
(2,549,846)
3,799,199
3,549,408
249,791
Increase (Decrease) Before Transfers
4,639,555
(545,577)
5,185,132
4,133,736
1,398,367
2,735,369
Transfers
186,755
284,586
(97,831)
(186,755)
(284,586)
97,831
Transfers - Capital Assets
(162,876)
-
(162,876)
162,876
-
162,876
Change in Net Position
4,663,434
(260,991)
4,924,425
4,109,857
1,113,781
2,996,076
Net Position - January 1
29,478,715
29,739,706
(260,991)
27,028,231
25,914,450
1,113,781
Net Position -December 31
$ 34,142,149
$ 29,478,715
$ 4,663,434
$ 31,138,088
$ 27,028,231
$ 4,109,857
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Governmental Activities
Governmental activities resulted in an increase of the City's net position by $4,663,434. Key elements of this change is as follows:
• Capital grants and contributions increased $1,282,949 (40.67%), which is the result of contributed infrastructure from housing
and industrial developers. Other significant activity within capital grants and contributions include special assessments, local
cost sharing for street projects, park dedication fees, an infrastructure grant from MN DEED and state -aid construction funding.
• Expenses in the public works function decreased by $3,131,799 (48.02%). This decrease was the result of a significant street
infrastructure project, 70th Street, which had expenditures of $3,280,346 during 2015. This project did carry-over into 2016, but
the expenses in 2016 were significantly less.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Function Expenses vs. Program Revenues
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
General Public Safety Public Works Culture & Economic Interest on Long -
Government Recreation Development Term Debt
■ Expense ■ Program Revenue
Revenues by Source Franchise Taxes
1.04% Unrestricted Grants &
Contributions
Property Taxes 2.03%
39.30%
Investment Earnings
0.65%
19
Sales of Capital Assets
0.25%
Operating Grants
1.97%
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Business -type Activities
Business -type activities resulted in an increase of net position by $4,109,857. Key elements of this change are as follows:
• Capital grants and contributions increased $2,746,648 (135.95%). This increase is the result of two significant factors, 1) fees
collected on new connections to the public utility system; 2) infastructure contributions from housing and industrial developers.
The fees collected on new system connections go towards paying the debt service issued during the construction of the
respective utility systems. During 2016, the fees collected on new connections exceeded the debt service payments.
• Overall, the operating activities of the business -type activities remained consistent with the prior year. Increases were noted
in charges for services, which for the most part kept pace with the increased expenses incurred for the operation of said utilities.
Below are specific graphs which provide comparisons of the business -type activities revenues and expenses:
Function Expenses vs. Program Revenues
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Water Utility Sanitary Sewer Utility Storm Water Utility
■ Expense ■ Program Revenue
Revenues by Source
ital Grants
60.09
Property Taxes
0.32%
Charges for Services
37.96%Investment Earnings
1.63%
20
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Financial Analysis of the Government's Funds
Governmental Funds: The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned
fund balance may serve as useful measure of a government's net resources available at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $12,939,772, which
is an increase of $562,345 (4.54%) from the previous year. The unassigned fund balance, which is not subject to internal or
external constraints upon its use, is $3,061,548 (23.66% of total).
Major Funds
The General fund is the primary operating fund of the City. At the end of the current fiscal year, total fund balance is
$3,646,202, an increase of $755,679 (26.14%). The increase in fund balance was the result of licenses and permits exceeding the
budgeted expectations by $1,020,000. All other revenues and expenditures were very comparable to their budgeted amounts. The
offset to the budget surplus was a transfer out of $460,212 in accordance with the City's fund balance policy. As a measure of the
General fund's liquidity, it may be useful to compare both unassigned and total fund balance, to total fund expenditures. The
unassigned fund balance, which is $3,342,821, represents 70.94% of the current year General fund expenditures. Total General
fund balance represents 77.38% of those same expenditures. Both of these are improvements over the prior year.
The Debt Service fund has a total fund balance of $1,933,757 at the end of the year, a decrease of $306,213 (13.67%) from the
previous year. The City retired $1,210,000 of principal on the outstanding bonded debt during 2016.
Proprietary Funds: The City's proprietary funds provide the same type of information presented as business -type activities
found in the government -wide financial statements, but in more detail.
The enterprise funds have a combined ending net position of $31,138,088, an increase of $4,109,857 (15.21%). There are two
components to net position in the enterprise funds, unrestricted ($15,248,794 or 48.97%) and net investment in capital assets
($15,889,294 or 51.03%). As a measure of liquidity, the unrestricted net position amounts to 530.63% of the current year operating
expenses. Other factors concerning the finances of these funds have already been addressed in the discussion of the City's
business -type activities.
21
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Below is a graph with comparative amounts for each fund balance component for fiscal years 2014, 2015 and 2016:
Governmental Fund Balance Components
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Nonspendable Restricted Committed Assigned Unassigned
■ 2014 ■ 2015 ■ 2016
The City's Unassigned fund balance represents 23.66% of total governmental fund balance. The City also has four other components
of fund balance, including Nonspendable (0.87%), Restricted (14.93%), Committed (3.24%) and Assigned (57.29%).
• Nonspendable fund balance represents the amount of assets the City has invested in prepaid items. The balance of this
fund balance component largely fluctuates with the timing of certain payments (e.g. insurance premiums).
• The City's restricted fund balance is the result of external constraints placed upon it. The source of that constraint includes
debt service. This component has decreased slightly over the past three years as the bonds payable balance has declined.
• The committed fund balances are within the City's special revenue funds for Street Lighting and Revolving Loans. This
fund balance component has stayed consistent over the past three years.
• Assigned fund balances are primarily associated with the City's capital project funds. The fund balance in this component
has been increasing each of the past three years, and is the result of the City accumulating resources for future capital
improvement projects and capital equipment purchases.
A more detailed breakdown of the fund balance components can be found in the basic financial statements and accompanying
financial statement footnotes.
22
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
General Fund Budeetary Hiehliehts
During the year, there were no amendments to the General fund budget. The budgeted revenues and expenditures resulted in
no change in fund balance. Actual results for the fiscal year were an increase of $755,679 (26.14%). The key elements of this change
are as follows:
• Actual revenues exceeded the budget by $1,047,989 (22.09%). The largest revenue variance was provided by licenses and
permits, which were over budget by $1,020,000. The City has routinely budgeted for building permits at a conservative number
ever since the housing crash in the late 2000's. During 2016, there were 219 new residential construction permits issued. Along
with the residential activity, there were also a handful of significant commercial, industrial and institutional permits issued. All
other revenues accounted for an amount in excess of the budget of $27,989.
• Actual expenditures were less than budget by $40,312 (0.85%). This is the second consecutive year that the City has been within
one percent of its adopted expenditure budget, with both years being under budget. General government functions were under
budget by $21,088 and public works functions were under budget by $88,332. Public safety functions exceeded the budget by
$62,485, entirely driven by the increased building inspection activity that was required for all the permits issued.
• Transfers in resulted in no variance from the budget. These transfers are from the Water and Sanitary Sewer utility funds, and
help to reduce personnel and administrative overhead costs.
• Transfers out were budgeted at $127,590 which represented the amount of revenue budgeted for local -government aid received
during the year. The City Council has made a policy decision to not rely upon local -government aid as an ongoing revenue
source to support General fund operations, rather to set the money aside for capital needs. During 2016, the City Council made
the decision to simplify the accounting, and apply the revenue directly to a capital projects fund. The actual transfer out, $460,212
is in accordance with the City's fund balance policy. That policy outlines that and General fund balance exceeding 45% of the
subsequent year's expenditure budget will be transferred, and assigned for future capital items. This transfer is not budgeted.
The ending unassigned fund balance of the General fund ($3,342,821) represents 66.32% of the adopted 2017 budget.
23
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Capital Asset and Debt Administration
Capital Assets: The City's investment in capital assets for its governmental and business -type activities at the end of the current
year, amounts to $69,952,673 (net of accumulated depreciation). This investment in capital assets includes: land, buildings, street and
utility infrastructure, parks equipment, trails, machinery and equipment and construction in progress. The City's investment in
capital assets increased $4,839,648 (7.43%) from the previous year.
Major capital asset events during the current year included the following:
• The City updated its machinery & equipment fleet with several new pieces of equipment. The majority of these acquisitions were
replacements of existing assets, however; a few items were new assets. These assets include: 1) a heavy duty snow plow and
dump -body truck; 2) three light/medium duty trucks; 3) zero -turn mower; 4) anti -icing application equipment; and 5) a machine
that allows for efficient paint application to the City's athletic fields.
The City received contributed infrastructure from housing and industrial developers. These assets include: streets, trail systems,
and public utility infrastructure. These assets are paid for and installed by the developer, are inspected by the City Engineer
to City standards, and are later accepted by the City, who is responsible for future maintenance and replacement.
• Construction of Northwood Park largely was completed in 2016. This neighborhood park is located on the East side of Trunk
Highway 101, and North of County Road 38. The park includes play structures, a shelter, athletic fields and community gardens.
• Road improvements were made to 80th Street NE from Marlowe Avenue to Maciver Avenue. These improvements were installed
to handle the future traffic at the Prairie View Elementary and Middle School, which will open in the Fall of 2017.
• A road extension was completed to Quaday Avenue NE to allow for industrial development to take place. Development activity
along this road started in 2016 with the construction of a new facility for P&F Machining, which opened in early 2017.
• The City's trail system expanded along County Road 38 making an important connection from Queens Avenue NE.
• The expansion of the bio -solids processing digester at the West Sanitary Sewer Treatment facility was largely completed. This
new processing infrastructure will allow for more effective and efficient treatment of bio -solids materials.
• An additional aerator was added to the liquids processing ditches at the East Sanitary Sewer Treatment facility. This equipment
provides added capacity to handle the growing liquids processing requirements as well as providing for system redundancy.
Land
Construction in Progress
Buildings and Improvements
Land Improvements
Machinery and Equipment
Infrastructure
CITY OF OTSEGO - CAPITAL ASSETS
(net of depreciation)
Governmental Activities Business -type Activities
Increase Increase
2016 2015 (Decrease) 2016 2015 (Decrease)
$ 1,959,823
$ 1,959,823
$ -
2,267,436
140,373
2,127,063
4,818,512
4,974,124
(155,612)
2,710,260
2,909,130
(198,870)
1,518,206
1,441,980
76,226
14,340,322
13,606,025
734,297
$ 27,614,559
$ 25,031,455
$ 2,583,104
$ 550,079 $ 550,079 $ -
2,522,568 78,389 2,444,179
271,381 255,844 15,537
38,994,086 39,197,258 (203,172)
$ 42,338,114 $ 40,081,570 $ 2,256,544
Additional information on the City's capital assets can be found in Note 3 (B) on pages 52 through 53 of this CAFR.
24
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Long -Term Debt: At the end of the current year, the City had outstanding long-term bonded debt of $34,135,000.
CITY OF OTSEGO - OUTSTANDING DEBT
Revenue streams for the repayment of the outstanding debt liabilities include: special assessments upon benefitting properties, fees
from new connections to the water and sanitary sewer utility systems, and property tax levies. Should any of these sources of
revenues prove inadequate, all outstanding bonds are backed by the full faith and credit of the City.
The City did not issue any bonds during 2016, and made principal payments in the amount of $3,210,000, which reduced the total
outstanding long-term debt by 8.60% from the previous year.
The City's bond rating is AA, with a stable outlook from Standard & Poor's Ratings Services.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated Market Value. The
current debt limitation for the City is $36,365,901, with $4,182,411 in debt outstanding that is applicable to the limit.
Additional information on the City's long-term debt can be found in Note 3 (E) on pages 56 through 58 of this CAFR
25
Governmental Activities
Business -type Activities
Increase
Increase
2016
2015
(Decrease)
2016
2015
(Decrease)
General Obligation Bonds
$ 8,345,000
$ 9,510,000
$ (1,165,000)
-
Equipment Certificates
130,000
175,000
(45,000)
-
-
-
General Obligation Revenue Bonds
-
-
-
25,660,000
27,660,000
(2,000,000)
Unamortized Premiums
35,857
43,029
(7,172)
788,820
867,701
(78,881)
Compensated Absences
71,167
79,566
(8,399)
11,506
7,714
3,792
Total
$ 8,582,024
$ 9,807,595
$ (1,225,571)
$ 26,460,326
$ 28,535,415
$ (2,075,089)
Revenue streams for the repayment of the outstanding debt liabilities include: special assessments upon benefitting properties, fees
from new connections to the water and sanitary sewer utility systems, and property tax levies. Should any of these sources of
revenues prove inadequate, all outstanding bonds are backed by the full faith and credit of the City.
The City did not issue any bonds during 2016, and made principal payments in the amount of $3,210,000, which reduced the total
outstanding long-term debt by 8.60% from the previous year.
The City's bond rating is AA, with a stable outlook from Standard & Poor's Ratings Services.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated Market Value. The
current debt limitation for the City is $36,365,901, with $4,182,411 in debt outstanding that is applicable to the limit.
Additional information on the City's long-term debt can be found in Note 3 (E) on pages 56 through 58 of this CAFR
25
CITY OF OTSEGO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2016
Economic Factors and Next Year's Budget and Rates
The following economic factors were identified by the City as potentially having an impact on the financial future of the City, and
were considered in preparation of the 2017 operating budgets and capital improvement plans.
• The Taxable Market Value of real estate and personal property within the City increased 11.22% for taxes payable 2017. This
increase is driven by both new construction within the City as well as market driven valuation increases.
• New construction in the residential sector continues within the City. During 2016, the City issued 219 building permits for new
residential construction. The City also continues to see builders final platting new developments for future years construction.
• The City had significant real estate activity within the Waterfront East development, as all of the remaining parcels have been
purchased. The City is already seeing the construction of Nystrom & Associates who are expanding upon their operations in
the City. Guardian Angels has also proposed a 143 unit senior facility with individual living, assisted living and memory care.
• Industrial development continued during 2016. Wagner Spraytech built a new 270,144 square foot facility to complete Phase 1
in the Gateway North industrial park. The City sold a portion of a parcel in Great River Centre that was acquired through tax
forfeiture to P&F Machining, who constructed a 54,000 square foot facility. The City has also received a proposal for the
development of another 80 acres of industrial park along Kadler Avenue on the western side of the City.
• The construction of the third school within Otsego got underway during 2016. Prairie View Elementary and Middle School will
be an early childhood through 8th grade facility, and is part of School District 728. As part of this construction, the City made
improvements to existing infrastructure in the area. The City is now in the planning stages to extend 85th Street and Maciver
Avenue to allow for additional travel routes to and from the new school. Construction is tenatively planned for 2018.
• The City is undertaking a master planning process for the City' sanitary sewer facilities. The study will take into effect the
ultimate buildout projections for the City and its public sanitary sewer system. The results will determine if any future land
acquisitions are necessary as well as estimated phasing plans for capacity additions the existing facilities. The results should
be available in late summer 2017.
• The City continues to expand upon and make improvements to the Capital Improvement Plan (CIP). The adopted CIP for 2017
now plans for capital purchasing ten years into the future. These long range planning efforts assure that the City is always
looking into the future and that the City is adequately planning from a financial resources standpoint.
Requests for information
This financial report is designed to provide a general overview of the City of Otsego's finances for all those with an interest in the
government's finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the: Finance Director, 13400 90th Street NE, Otsego, MN 55330.
26
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
27
CITY OF OTSEGO, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2016
The notes to the financial statements are an integral part of this statement
28
Governmental
Business -Type
Activities
Activities
Total
ASSETS
Cash and Investments
$ 12,626,105
$ 14,702,050
$ 27,328,155
Receivables
Interest
83,219
-
83,219
Accounts
14,536
353,116
367,652
Taxes
82,994
-
82,994
Special Assessments
3,085,625
529,145
3,614,770
Due from Other Governments
713,378
18,632
732,010
Prepaid Items
112,973
38,091
151,064
Capital Assets
Nondepreciable
4,227,259
3,072,647
7,299,906
Depreciable, Net of Accumulated Depreciation
23,387,300
39,265,467
62,652,767
Total Assets
44,333,389
57,979,148
102,312,537
DEFERRED OUTFLOWS OF RESOURCES
General Employees Retirement Plan Pension Resources
551,448
127,317
678,765
Total Deferred Outflows of Resources
551,448
127,317
678,765
LIABILITIES
Accounts Payable
573,673
77,155
650,828
Due to Other Governments
14,301
428
14,729
Accrued Salaries Payable
47,514
12,116
59,630
Accrued Interest Payable
61,866
80,509
142,375
Compensated Absences Payable
Due Within One Year
14,233
2,301
16,534
Due in More than One Year
56,934
9,205
66,139
Bonds Payable
Due Within One Year
1,125,000
2,035,000
3,160,000
Due in More than One Year
7,385,857
24,413,820
31,799,677
General Employees Retirement Plan Net Pension Payable
1,306,112
301,550
1,607,662
Total Liabilities
10,585,490
26,932,084
37,517,574
DEFERRED INFLOWS OF RESOURCES
General Employees Retirement Plan Pension Resources
157,198
36,293
193,491
Total Deferred Inflows of Resources
157,198
36,293
193,491
NET POSITION
Net Investment in Capital Assets
19,103,702
15,889,294
34,992,996
Restricted
Debt Service
4,292,589
-
4,292,589
Unrestricted
10,745,858
15,248,794
25,994,652
Total Net Position
$ 34,142,149
$ 31,138,088
$ 65,280,237
The notes to the financial statements are an integral part of this statement
28
CITY OF OTSEGO, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31. 2016
The notes to the financial statements are an integral part of this statement.
29
Program Revenues
Net (Expense) Revenue and Changes in Net Position
Operating
Capital
Charges For Grants and
Grants and
Governmental
Business -Type
[JNCTIONS/PROGRAMS
Expenses
Services Contributions
Contributions
Activities
Activities
Total
Government Activities
General Government
$ 1,376,793
$ 81,876 $ -
$
$ (1,294,917)
$
$ (1,294,917)
Public Safety
1,846,459
1,677,788 58,339
(110,332)
(110,332)
Public Works
3,389,909
656,570 186,893
3,956,536
1,410,090
1,410,090
Culture and Recreation
847,553
59,236 3,678
481,075
(303,564)
(303,564)
Economic Development
302,296
- -
-
(302,296)
(302,296)
Interest on Long -Term Debt
223,938
-
-
(223,938)
(223,938)
Total Government Activities
7,986,948
2,475,470 248,910
4,437,611
(824,957)
(824,957)
Business -Type Activities
Water Utility
1,276,338
1,334,442 -
1,471,674
1,529,778
1,529,778
Sanitary Sewer Utility
2,480,519
1,601,172
2,966,133
2,086,786
2,086,786
Storm Water Utility
42,342
75,932
329,140
362,730
362,730
Total Business -Type Activities
3,799,199
3,011,546
4,766,947
3,979,294
3,979,294
Total
$ 11,786,147
$ 5,487,016 $ 248,910
$ 9,204,558
(824,957)
3,979,294
3,154,337
General Revenues
Property Taxes
4,963,787
25,000
4,988,787
Franchise Taxes
131,229
-
131,229
Grants and Contributions Not
Restricted to Specific Programs
255,951
-
255,951
Unrestricted Investment Earnings
82,385
129,442
211,827
Gain on Disposal of Capital Assets
31,160
-
31,160
Transfers
186,755
(186,755)
-
Transfers - Capital Assets
(162,876)
162,876
-
Total General Revenues and Transfers
5,488,391
130,563
5,618,954
Change in Net Position
4,663,434
4,109,857
8,773,291
Net Position - January 1
29,478,715
27,028,231
56,506,946
Net Position - December 31
$ 34,142,149
$ 31,138,088
$ 65,280,237
The notes to the financial statements are an integral part of this statement.
29
CITY OF OTSEGO, MINNESOTA
BALANCESHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2016
ASSETS
Cash and Investments
Receivables
Interest
Accounts
Taxes
Current
Delinquent
Special Assessments
Current
Deferred
Delinquent
Due from Other Governments
Due from Other Funds
Prepaid Items
Total Assets
LIABILITIES
Accounts Payable
Accrued Salaries Payable
Due to Other Governments
Due to Other Funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes
Unavailable Revenue - Special Assessments
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable
Restricted
Committed
Assigned
Unassigned (Deficits)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
Other
Debt Nonmajor Total
General Service Governmental Governmental
$ 3,541,467 $ 2,270,938 $ 6,813,700 $ 12,626,105
83,219
-
-
83,219
7,628
-
6,908
14,536
21,561
-
-
21,561
61,433
-
-
61,433
676
1,526
1,286
3,488
8,250
2,414,120
650,493
3,072,863
362
6,578
2,334
9,274
7,971
-
705,407
713,378
16,278
-
676,564
692,842
110,973
2,000
-
112,973
3,859,818
4,695,162
8,856,692
17,411,672
81,756
1,877
490,040
573,673
47,514
-
-
47,514
14,301
-
-
14,301
-
338,830
354,012
692,842
143,571
340,707
844,052
1,328,330
61,433
-
-
61,433
8,612
2,420,698
652,827
3,082,137
70,045
2,420,698
652,827
3,143,570
110,973
2,000
-
112,973
-
1,931,757
-
1,931,757
-
-
419,829
419,829
192,408
-
7,221,257
7,413,665
3,342,821
-
(281,273)
3,061,548
3,646,202
1,933,757
7,359,813
12,939,772
$ 3,859,818 $ 4,695,162 $ 8,856,692 $ 17,411,672
The notes to the financial statements are an integral part of this statement.
30
CITY OF OTSEGO, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET POSITION
DECEMBER 31, 2016
Fund Balances - Governmental Funds $ 12,939,772
Amounts reported for the governmental activities within the statement
of net position are different because:
Capital assets used in governmental activities are not financial resources,
and therefore, are not reported as assets in governmental funds.
Cost of Capital Assets 38,409,345
Accumulated Depreciation (10,794,786)
Long-term liabilities, including bonds payable, are not due and payable in the
current period, and therefore, are not reported as liabilities in governmental funds.
Bonds Payable (8,475,000)
Unamortized Premium on Bonds Payable (35,857)
Accrued Interest Payable (61,866)
Compensated Absences Payable (71,167)
GERF Pension Payable (1,306,112)
Some receivables are not available soon enough to pay for the current period's
expenditures, and therefore, are unavailable in governmental funds.
Delinquent Property Taxes Receivable 61,433
Special Assessments Receivable 3,082,137
Deferred resources from pensions reported in governmental activities are not
financial resources and are not payable in the current period, therefore are not
reported in governmental funds.
GERF Pension Deferred Outflows of Resources 551,448
GERF Pension Deferred Inflows of Resources (157,198)
Total Net Position - Governmental Activities $ 34,142,149
The notes to the financial statements are an integral part of this statement.
31
CITY OF OTSEGO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
OTHER FINANCING SOURCES (USES)
Transfers In
136,755
51,120
Other
648,087
Sales of Capital Assets
-
Debt
Nonmajor
Total
Transfers Out
General
Service
Governmental
Governmental
REVENUES
(323,457)
51,120
490,252
217,915
Property Taxes
$ 3,494,664
$ 640,000
$ 825,854
$ 4,960,518
Franchise Taxes
131,229
-
-
131,229
Licenses and Permits
1,661,565
-
-
1,661,565
Intergovernmental
69,567
-
2,042,160
2,111,727
Charges for Services
286,614
-
987,964
1,274,578
Special Assessments
4,179
449,527
121,449
575,155
Fines and Forfeitures
16,223
-
-
16,223
Investment Earnings (net)
21,233
-
61,152
82,385
Miscellaneous
106,222
-
13,510
119,732
Total Revenues
5,791,496
1,089,527
4,052,089
10,933,112
EXPENDITURES
Current
General Government
1,233,680
-
-
1,233,680
Public Safety
1,807,985
-
-
1,807,985
Public Works
1,010,620
-
9,326
1,019,946
Culture and Recreation
534,122
-
-
534,122
Economic Development
98,325
-
98,209
196,534
Capital Outlay
General Government
6,325
-
108,180
114,505
Public Safety
21,303
-
-
21,303
Public Works
-
-
3,222,643
3,222,643
Culture and Recreation
-
-
885,342
885,342
Economic Development
-
-
105,762
105,762
Debt Service
Principal
-
1,210,000
-
1,210,000
Interest
-
233,498
-
233,498
Fiscal Agent Fees
-
3,362
-
3,362
Total Expenditures
4,712,360
1,446,860
41429,462
10,588,682
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,079,136
(357,333)
(377,373)
344,430
OTHER FINANCING SOURCES (USES)
Transfers In
136,755
51,120
460,212
648,087
Sales of Capital Assets
-
-
31,160
31,160
Transfers Out
(460,212)
-
(1,120)
(461,332)
Total Other Financing Sources (Uses)
(323,457)
51,120
490,252
217,915
Net Change in Fund Balance
755,679
(306,213)
112,879
562,345
Fund Balance - January 1
2,890,523
2,239,970
7,246,934
12,377,427
Fund Balance - December 31
$ 3,646,202
$ 1,933,757
$ 7,359,813
$ 12,939,772
The notes to the financial statements are an integral part of this statement.
32
CITY OF OTSEGO, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2016
Total Net Change in Fund Balances - Governmental Funds $ 562,345
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives as depreciation.
Capital Outlays 2,745,369
Depreciation Expense (1,281,601)
Assets Contributed by Developers 1,287,485
Contributions of capital assets to the proprietary funds decrease net position in the statement of
activities, but do not appear in the governmental funds because they are not financial resources. (162,876)
In the statement of activities, only the gain on the sale of capital assets is reported. However,
in the governmental funds, the proceeds from the sale increase financial resources. Thus the
change in net position differs from the change in fund balance by the cost of the capital assets sold. (5,273)
The repayment of principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position.
Principal Repayments 1,210,000
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities; however,
interest expense is recognized as the interest accrues, regardless of when it is due. 12,922
Certain revenues are recognized as soon as they are earned. Under the modified accrual
basis of accounting, certain revenues cannot be recognized until they are available to
liquidate liabilities of the current period.
Property Taxes 3,269
Special Assessments 371,477
In the statement of activities, personnel expenses are recognized as they are accrued, however
these expenses do not consume current financial resources, and under the modified accrual
basis of accounting, are not reported in the governmental funds until they are due.
Compensated Absences 8,398
GERF Pension (88,081)
Change in Net Position - Governmental Activities $ 4,663,434
The notes to the financial statements are an integral part of this statement.
33
CITY OF OTSEGO, MINNESOTA
GENERAL FUND - STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
REVENUES
Property Taxes
Franchise Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Special Assessments
Fines and Forfeitures
Investment Earnings (net)
Miscellaneous
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Capital Outlay
General Government
Public Safety
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - January 1
Fund Balance - December 31
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget -
Over
(Under)
$ 3,544,352
$ 3,544,352
$ 3,494,664
$ (49,688)
107,000
107,000
131,229
24,229
641,565
641,565
1,661,565
1,020,000
343,590
343,590
69,567
(274,023)
57,000
57,000
286,614
229,614
-
-
4,179
4,179
-
-
16,223
16,223
50,000
50,000
21,233
(28,767)
-
-
106,222
106,222
4,743,507
4,743,507
5,791,496
1,047,989
1,254,768
1,254,768
1,233,680
(21,088)
1,745,500
1,745,500
1,807,985
62,485
1,098,952
1,098,952
1,010,620
(88,332)
535,652
535,652
534,122
(1,530)
105,300
105,300
98,325
(6,975)
1,000
1,000
6,325
5,325
11,500
11,500
21,303
9,803
4,752,672
4,752,672
4,712,360
(40,312)
(9,165)
(9,165)
1,079,136
1,088,301
136,755
136,755
136,755
-
(127,590)
(127,590)
(460,212)
(332,622)
9,165
9,165
(323,457)
(332,622)
- - 755,679 755,679
2,890,523 2,890,523 2,890,523 -
$ 2,890,523 $ 2,890,523 $ 3,646,202 $ 755,679
The notes to the financial statements are an integral part of this statement.
34
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
35
CITY OF OTSEGO, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2016
ASSETS
Current Assets
Cash and Cash Equivalents
Receivables
Accounts
Special Assessments
Current
Delinquent
Due from Other Governments
Prepaid Items
Total Current Assets
Noncurrent Assets
Special Assessments
Deferred
Capital Assets
Land
Machinery and Equipment
Infrastructure
Construction in Progress
Total Capital Assets
Less: Accumulated Depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
General Employees Retirement Plan Pension Resources
LIABILITIES
Current Liabilities
Accounts Payable
Due to Other Governments
Accrued Salaries Payable
Accrued Interest Payable
Bonds Payable
Compensated Absences Payable
Total Current Liabilities
Noncurrent Liabilities
Bonds Payable (net)
Compensated Absences Payable
General Employees Retirement Plan Net Pension Payable
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
General Employees Retirement Plan Pension Resources
NET POSITION
Net Investment in Capital Assets
Unrestricted
Total Net Position
The notes to the financial statements are an integral part of this statement.
36
Sanitary
Storm
Water
Sewer
Water
Total
Utility
Utility
Utility
Enterprise
$ 7,879,742
$ 6,663,215
$ 159,093
$ 14,702,050
122,670
226,588
3,858
353,116
421
-
191
612
9,163
-
462
9,625
-
18,632
-
18,632
9,115
28,976
-
38,091
8,021,111
6,937,411
163,604
15,122,126
186,063
286,862
45,983
518,908
57,392
492,687
-
550,079
192,981
238,492
-
431,473
18,566,434
32,555,855
1,185,794
52,308,083
9,500
2,513,068
-
2,522,568
18,826,307
35,800,102
1,185,794
55,812,203
(4,627,448)
(8,706,439)
(140,202)
(13,474,089)
14,198,859
27,093,663
1,045,592
42,338,114
14,384,922
27,380,525
1,091,575
42,857,022
22,406,033
34,317,936
1,255,179
57,979,148
31,830
95,487
-
127,317
14,090
61,280
1,785
77,155
428
-
-
428
3,029
9,087
-
12,116
28,983
51,526
-
80,509
732,600
1,302,400
-
2,035,000
575
1,726
-
2,301
779,705
1,426,019
1,785
2,207,509
8,788,975
15,624,845
-
24,413,820
2,301
6,904
-
9,205
75,389
226,161
-
301,550
8,866,665
15,857,910
-
24,724,575
9,646,370
17,283,929
1,785
26,932,084
9,073
27,220
-
36,293
4,677,284
10,166,418
1,045,592
15,889,294
8,105,136
6,935,856
207,802
15,248,794
$ 12,782,420
$ 17,102,274
$ 1,253,394
$ 31,138,088
36
CITY OF OTSEGO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
OPERATING REVENUES
Charges for Services
OPERATING EXPENSES
Personal Services
Supplies
Insurance
Utilities
Services and Other Charges
Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Antenna Rental
Property Taxes
Special Assessments
Investment Earnings (net)
Miscellaneous Revenue
Interest and Fiscal Agent Fees
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Capital Contributions and Transfers
Connection Fees
Capital Contributions - Developer Assets
Capital Contributions - Governmental Funds
Transfers Out
Change in Net Position
Net Position - January I
Net Position - December 31
The notes to the financial statements are an integral part of this statement.
37
Sanitary
Storm
Water
Sewer
Water
Total
Utility
Utility
Utility
Enterprise
$ 1,266,379
$ 1,590,795
$ 46,811
$ 2,903,985
90,893
270,660
-
361,553
173,969
160,706
401
335,076
9,776
31,148
-
40,924
63,355
176,861
-
240,216
123,337
409,288
17,890
550,515
481,736
839,617
24,051
1,345,404
943,066
1,888,280
42,342
2,873,688
323,313
(297,485)
4,469
30,297
67,782
-
67,782
-
25,000
25,000
-
-
29,121
29,121
61,744
66,785
913
129,442
281
10,377
-
10,658
(333,272)
(592,239)
-
(925,511)
(203,465)
(515,077)
55,034
(663,508)
119,848
(812,562)
59,503
(633,211)
990,079
2,672,018
-
3,662,097
481,595
294,115
329,140
1,104,850
-
162,876
-
162,876
(43,439)
(143,316)
-
(186,755)
1,548,083
2,173,131
388,643
4,109,857
11,234,337
14,929,143
864,751
27,028,231
$ 12,782,420
$ 17,102,274
$ 1,253,394
$ 31,138,088
37
CITY OF OTSEGO, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users
Other Operating Receipts
Payments to Suppliers
Payments to Employees
Net Cash Flows Provided by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Sanitary
Storm
Water
Sewer
Water
Total
Utility
Utility
Utility
Enterprise
$ 1,256,898
$ 1,570,192
$ 46,727
$ 2,873,817
44,634
10,377
36,109
91,120
(379,876)
(773,458)
(20,806)
(1,174,140)
(85,301)
(253,879)
-
(339,180)
836,355
553,232
62,030
1,451,617
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
(1,157,932)
Property Taxes
-
(321,908)
25,000 25,000
Principal Paid on Revenue Bonds
(720,000)
(1,280,000)
- (2,000,000)
Interest Paid on Revenue Bonds
(362,869)
(644,856)
- (1,007,725)
Transfers Out
(43,439)
(143,316)
- (186,755)
Net Cash Flows Provided (Used) by Noncapital Financing Activities
(1,126,308)
(2,068,172)
25,000 (3,169,480)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets
(36,980)
(2,387,134)
- (2,424,114)
Connection Fees
1,013,270
2,677,357
3,690,627
Net Cash Flows Provided by Capital and Related Financing Activities
976,290
290,223
- 1,266,513
CASH FLOWS FROM INVESTING ACTIVITIES
1,345,404
3,686
Interest on Investments
61,744
66,785
913 129,442
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - January 1
Cash and Cash Equivalents - December 31
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Flows Provided (Used) by Operating Activities:
Depreciation
GERF Pension Activity
Other Income Related to Operations
(Increase) Decrease in Assets & Deferred Outflows of Resources:
Accounts Receivable
Special Assessments
Due from Other Governments
Prepaid Items
Increase (Decrease) in Liabilities & Deferred Inflows of Resources
Accounts Payable
Due to Other Governments
Accrued Salaries Payable
Compensated Absences Payable
Net Cash Flows Provided (Used) by Operating Activitiess
NONCASH FINANCING ACTIVITIES
Amortization of Premium on Bonds Payable
Acquisition of Capital Assets on Account
Contribution of Capital Assets - Developer
Contribution of Capital Assets - Governmental Funds
The notes to the financial statements are an integral part of this statement.
748,081
(1,157,932)
87,943
(321,908)
7,131,661
7,821,147
71,150
15,023,958
$ 7,879,742
$
6,663,215
$
159,093
$
14,702,050
$ 323,313
$
(297,485)
$
4,469
$
30,297
481,736
839,617
24,051
1,345,404
3,686
11,058
-
14,744
68,063
10,377
29,121
107,561
(9,481)
(14,944)
(84)
(24,509)
(23,429)
6,988
(16,441)
-
(5,659)
-
(5,659)
(553)
(2,648)
(3,201)
(3,171)
10,694
(2,515)
5,008
(5,715)
(3,501)
(9,216)
959
2,878
-
3,837
947
2,845
-
3,792
$ 836,355
$
553,232
$
62,030
$
1,451,617
$ 28,397
$
50,484
$
$
78,881
$ -
$
25,010
$
$
25,010
$ 481,595
$
294,115
$
329,140
S
1,104,850
$ -
$
162,876
$
-
$
162,876
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
39
CITY OF OTSEGO, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
AGENCYFUNDS
DECEMBER 31, 2016
ASSETS
Current Assets
Cash and Cash Equivalents
LIABILITIES
Current Liabilities
Accounts Payable
Escrow Deposits
Total Liabilities
Agency
Funds
$ 2,907,794
16,851
2,890,943
$ 2,907,794
The notes to the financial statements are an integral part of this statement.
M
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
The City of Otsego, Minnesota (the City) was incorporated in 1990 after being an established township since 1858. The
City operates under the "Optional Plan A" form of government, as defined in Minnesota statutes. The governing body
of the City (City Council) consists of an elected Mayor, and four elected Council members, all of which are elected at -large
and serve four year staggered terms. The City Council exercises legislative authority and determines all matters of policy.
The financial statements of the City have been prepared in accordance with accounting principles generally accepted in
the United States of America (GAAP), as applied to governmental units by the Governmental Accounting Standards
Board (GASB).
The City includes all funds, organizations, institutions, agencies, departments, boards, and offices that are not legally
separate from the City. Component units are legally separate organizations for which the elected officials of the City are
financially accountable and are included within the basic financial statements of the City because of the significance of
their operational or financial relationships with the City.
The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's
governing body and is able to impose its will on the organization by significantly influencing the programs, projects,
activities, or level of services performed or provided by the organization, or there is a potential for the organization to
provide specific financial benefits to, or impose specific financial burdens on, the City.
Blended component units, although legally separate, are, in substance, part of the government's operations. A blended
component unit is reported as if it were a fund of the City throughout the year. It is included at both the government -wide
and fund financial reporting levels.
A description of the City's blended component unit follows:
The City of Otsego Economic Development Authority (EDA) — The EDA is a legal entity separate from the City.
Although legally separate, the EDA is reported as if it were part of the primary government because the Board of
Commissioners is made up of the Mayor and four Council members and the City has operational responsibility over
the EDA. It is this criterion that results in the EDA being reported as a blended component unit within the primary
government, although there is currently no financial activity for the EDA. Separate financial statements would not be
prepared for the EDA, even if there was financial activity.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all non -fiduciary activities of the City and its component units. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely
to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business -type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business -type activity. Taxes
and other items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
41
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
The Agency funds are presented in the fiduciary fund financial statements, including the Statement of Fiduciary Net
Position. Since by definition, these assets are being held for the benefit of a third party, and cannot be used to address
activities or obligations of the City, these funds are not incorporated into the government -wide statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
The government -wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes
and special assessments are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60
days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, compensated absences, as well as expenditures related to claims and
judgements, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current
fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year.
Only the portion of special assessments receivable due within the current fiscal year is considered to be susceptible to accrual
as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
The City reports the following major governmental funds:
General Fund - This is the City's primary operating fund, and accounts for all of the general financial resources of
the City, except those required to be accounted for in another fund. Most of the current day-to-day operations of the
City are financed from this fund.
Debt Service Fund - This fund is used to account for the collection of property taxes, special assessments and other
resources which are used to repay the principal and interest on debt issued for various improvements in the City.
The City reports the following major enterprise funds:
Water Utility Fund - This fund accounts for the operations of the public water utility system. The resources
accumulated are primarily from system user charges and system connection fees. The accumulated funds are then used
to pay for the operational costs of pumping and distributing water to the system customers. The fund also accumulates
resources to finance certain capital improvements and to pay the debt service associated with the water utility.
Sanitary Sewer Utility Fund - This fund accounts for the operations of the public sewer utility system. The resources
accumulated are primarily from system user charges and system connection fees. The accumulated funds are then used
to pay for the operational costs of collection and treatment of sewage from the system. The fund also accumulates
resources to finance certain capital improvements and to pay the debt service associated with the sewer utility.
Storm Water Utility Fund - This fund accounts for the operations of the storm water collection system. The resources
accumulated are primarily from system user charges and property taxes. The accumulated funds are then used to pay
for the operational costs of collection and treatment of surface water runoff that does not require treatment.
42
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
The City reports the following fiduciary funds:
Agency Funds - These funds are custodial in nature and do not present results of operations or have a measurement
focus. Agency funds are accounted for using the accrual basis of accounting. These funds are used to account for
assets from residents, builders and developers that are deposited with the City as part of specific projects.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements.
Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved
external organizations, such as buying goods and services or payments in lieu of taxes. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services.
Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenue and expenses.
D. DEPOSITS AND INVESTMENTS
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and investments with a maturity of
three months or less when from the date of acquisition. All of the deposits and investments allocated to the proprietary funds
are considered to meet this criteria.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized
investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds.
Minnesota statute § 118A.04 governs the investment of public funds and outlines the allowable investment types. The City's
investment policy is more restrictive than statute, and authorizes the City to invest in the following:
a] Securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its
instrumentalities, or organizations created by an act of Congress.
b] Shares of investment companies registered under the Federal Securities Act of 1940, and received the highest credit
rating and is rated in one of the two highest categories by at least one nationally recognized statistical rating agency.
c] Obligations of any state or local government with taxing powers rated "A" for general obligations or with a rating of
"AA" or better for revenue backed obligations, with the ratings being provided by a national bond rating service.
d] Commercial paper issued by a United States corporation or their Canadian subsidiaries that is rated in the highest quality
by at least two nationally recognized rating agencies.
e] Time deposits that are fully insured by the Federal Deposit Insurance Corporation.
Certain investments for the City are reported at fair value as disclosed in Note 3 (A). The City categorizes its fair value
measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based
on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
43
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
E. RECEIVABLES AND PAYABLES
Accounts Receivable
Receivables include amounts billed for services provided by the City before year-end. Receivables within the enterprise
funds do include unbilled charges for services provided from the middle of December to the end of the year, as the City
bills for those services mid -month. The City currently has not established an allowance for doubtful accounts for either
trade or utility charge receivables. The City annually certifies unpaid trade and utility charge receivable to Wright County
for collection in the following year, and is the primary factor in reporting the receivables at a gross amount, rather than
net of allowance.
Property Taxes
The City Council annually adopts a property tax levy and certifies it to Wright County in December. The County allocates
this levy across taxable properties in the City based on valuations assessed in the prior year. These taxes become an
enforceable lien against the property on January 1 st, and are recorded as receivables by the City as of that date.
Tax statements are generated and mailed by the County to the respective taxpayers, with half of the total due on May 15th
and the second half due on October 15th. The County is also the collecting agency, and remits the amounts collected to the
City with primary settlements in June and December, and a minor settlement in January.
Property taxes that are unpaid as of December 31 st, are then classified as delinquent. Delinquent taxes receivable include
the past six years of uncollected taxes and are fully offset by a deferred inflow of resources for those collections not
received within 60 days of year-end in the governmental fund financial statements.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivables upon certification to the County. Special assessments have been offset by a
deferred inflow of resources for those collections not received within 60 days after year end in the governmental fund
financial statements.
Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds for goods provided or services
rendered. Short-term interfund loans are classified as "due to/from other funds." All short-term interfund receivables and
payables at December 31, 2016 are planned to be eliminated in 2017. Long-term interfund loans are classified as
"advances to/from other funds." Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances".
F. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as
expenditures/expenses at the time of consumption rather than when purchased.
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
G. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items),
and intangible assets such as easements and computer software, are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements and the proprietary fund financial statements. Capital assets are
defined by the City as assets with an initial, individual cost in excess of the amounts in the table below and with an estimated
useful life in excess of three years. All land assets are recorded by the City with no assigned cost threshold. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at
acquisition value at the date of donation.
Infrastructure $ 100,000
Buildings and Building Improvements 50,000
Land Improvements 25,000
Machinery and Equipment 5,000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during
the construction phase of capital assets of business -type activities is included as part of the capitalized value of the
assets constructed . For the year ended December 31, 2016 no interest was capitalized in connection with construction
in progress.
Capital assets of the City, are depreciated using the straight line method over the following estimated useful lives:
Infrastructure 25 - 40 years
Buildings and Building Improvements 10 - 40 years
Land Improvements 5 - 20 years
Machinery and Equipment 3 - 15 years
H. DEFERRED OUTFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The
City has only one item that qualifies for reporting in the category, Deferred Pension Resources. This item is reported only in
the statements of net position. This item results from four factors: 1) actuarial calculations for the difference between projected
and actual investment earnings on plan investments; 2) changes in actuarial assumptions; 3) changes in proportion; and 4) GERF
contributions paid subsequent to the measurement date.
45
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
I. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused personal time -off (PTO) benefits. All PTO pay is
accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is
reported in governmental fund financial statements only if they have matured, for example, as a result of an employee retirement
or resignation. The General fund is typically used to liquidate the compensated absences payable for governmental activities.
J. LONGTERM OBLIGATIONS
In the govermnent-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bonds using
the straight line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
K. PENSIONS
For purposes of measuring the net pension liability, deferred outflows of resources, deferred inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and
additions to or deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by
PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer
payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
L. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
In August 2004, the Governmental Accounting Standards Board (GASB) issued Statement No. 45, Accounting and Financial
Reporting by Employers for Post -Employment Benefits Other Than Pensions, effective for the City year-end 2009. Statement
No. 45 requires accrual based measurement, recognition and disclosure of other postemployment benefits (OPEB) expense,
such as retiree medical and dental costs, over the employees' years of service, along with the related liability, net of any plan
assets. The City has no plans that would result in an OPEB liability and, therefore, the City anticipates it will not incur any
future explicit or implicit OPEB costs for its employees, and therefore, no liability will be recorded.
M. DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, statements of financial position or balance sheets will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future
periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items
which qualify for reporting in this category. One item, unavailable revenue, which arises only under a modified accrual basis
of accounting, therefore, is reported only in the governmental funds Balance Sheet. The governmental funds report unavailable
revenue from sources such as: property taxes and special assessments not collected within 60 days of year-end. These
amounts are deferred and recognized as an inflow of resources in the period the amounts become available. The second item,
deferred pension resources, is reported only in the statements of net position. This item results from two factors: 1) the net
effect of actuarial calculations for the change in proportionate share of the GERF pension; and 2) actuarial calculations for the
difference between expected and actual economic experience.
.M
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
N. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net position for
proprietary funds. Fund equity in the government -wide financial statements is classified as net position for both
governmental and business -type activities.
Fund Balance — In the fund financial statements, governmental funds report fund balance in classifications that disclose
restraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable — consists of amounts that are not in spendable form or are required to be maintained intact.
Restricted — consists of amounts related to externally imposed constraints established by creditors, grantors or
contributors; or constraints imposed by state statutory provisions.
Committed — consists of internally imposed constraints. These constraints are imposed by formal action (resolution)
of the City Council, which is the highest level of decision making authority.
Assigned — consists of internally imposed constraints. These constraints reflect the specific purpose for which it is
the City's intended use. These constraints are established by the City Council or, pursuant to council resolution, the
City Administrator or the Finance Director.
Unassigned — is the residual classification for the General fund and also reflects negative residual amounts in other
funds.
When committed, assigned, or unassigned resources are available for an allowable use, it is the City's policy to use
resources in the following order; 1) committed, 2) assigned, and 3) unassigned.
The City has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target
fund balance amount of 45% of the next year's operating budget for cash flow needs.
Net Position — Net position represents the difference between assets, deferred outflows of resources, liabilities and
deferred inflows of resources. Net position can be displayed in the three following classifications:
Net Investment in Capital Assets — consists of capital assets, net of accumulated depreciation, and further reduced by
the outstanding balance of any long-term debt used to build or acquire the respective capital assets.
Restricted — reported when there are limitations of use through external restrictions imposed by creditors, grantors, or
laws and regulations of other governments.
Unrestricted — all remaining net position is reported in this classification.
When both restricted and unrestricted net position are available for an allowable use, it is the government's policy to
use restricted resources first, then unrestricted resources as they are needed.
O. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America (GAAP), requires management to make estimates and assumptions that affect amounts reported in the financial
statements and accompanying notes. Actual results could differ from such estimates.
47
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTE 2 STEWARDSHIP. COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
An annual budget is adopted on a basis consistent with accounting principles generally accepted in the United States of
America (GAAP) for the General fund. All annual appropriations lapse at year-end. The City does not use encumbrance
accounting.
In June of each year, General fund departments submit requests for appropriations to the City Administrator so that a budget
may be prepared. The requested budget appropriations are presented and reviewed with the City Council. The proposed
General fund budget and preliminary property tax levy must be certified to Wright County prior to September 30. The City
Council holds public hearings and a final budget is adopted in early December, with the final property tax levy required to be
certified to Wright County prior to the end of December.
The appropriated budget is prepared by fund and department. The City's department heads are authorized to make transfers of
budgeted appropriations within a department. Any transfers of appropriations between a department needs authorization of the
City Administrator. The legal level of budgetary control is at the fund level, so any appropriations transfers between funds needs
the approval of the City Council. There were no transfers of budgeted appropriations or budget amendments during the year.
B. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2016 in the following funds:
Nonmajor Governmental Funds:
Capital Project Funds
Municipal State -Aid for Construction
$ 153,258
Odean Improvements
5,425
80th Street Improvements
106,312
Special Revenue Funds
Tax Increment District #1
16,278
The deficits are being funded through internal borrowing. The Municipal State -Aid for Construction fund deficit will be repaid
with State -Aid funding for the 70th Street &CSAH 37 construction project. The Odean Improvements fund deficit will be
repaid with future collections of special assessments against the benefitting property owners. The 80th Street Improvement
fund deficit will be repaid with reimbursements from Independent School District 728 as the project was initiated by their
school construction. The Tax Increment District No. 1 fund deficit will be repaid with future collections of tax increment,
which is expected to begin in 2018.
UN
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTE 3 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
In accordance with Minnesota Statutes, the City maintains deposits at only those depository banks authorized by the
City Council. All such depositories are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits with financial institutions be protected by federal deposit insurance, corporate
surety bonds or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance
or bonds. Minnesota Statutes require that all securities pledged as collateral be placed in safekeeping in a restricted account at
the Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not
owned or controlled by the financial institution furnishing the collateral.
At year-end, the City's carrying amount of deposits was $3,622,032, and a bank balance of $3,948,671.
Custodial credit risk for the City's deposits would arise in the event of a bank failure, where the City's deposits may not be
returned to it. As of year-end, the City's bank balance was not exposed to custodial credit risk because it was insured and fully
collateralized with securities held by the pledging financial institution's trust department or agent in the City's name.
As of December 31, 2016 the City had the following investments:
Investment Type
Fair Value
< 1
Investment Maturities (In Years)
1 - 3 3 - 5 > 5
Negotiable Certificates of Deposit
$13,977,930
$ 5,899,135
$ 6,611,139 $
1,224,084 $ 243,572
U.S. Government Agency Securities
3,484,787
299,453
2,892,823
292,511 -
Municipal Bonds
8,498,411
1,545,916
2,531,698
4,420,797 -
Brokered Money Market Accounts
652,189
652,189
-
- -
Total
$ 26,613,317
$ 8,396,693
$ 12,035,660 $
5,937,392 $ 243,572
All of the City's investments have recurring fair value measurements using a matrix pricing model (level 2 inputs)
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
As of December 31, 2016, the City's investments in U.S. Government Agency Securities and Municipal Bonds carried the
following ratings as well as their respective concentration percentage when compared to the total investment portfolio.
None of the U.S. Government Agency Securities investments are individually over 5% of the total investment portfolio.
Municipal Bonds
Moody's
S & P
Fair
Portfolio
Investment Type
Rating
Rating
Value
Concentration %
U.S. Government Agency Securities
Al
n/a
100,019
0.38%
Federal Farm Credit Bank (FFCB)
Aaa
AA+
$ 1,544,875
5.80%
Federal Home Loan Bank (FHLB)
Aaa
AA+
992,474
3.73%
Federal National Mortgage Association (FNMA)
Aaa
AA+
947,438
3.56%
Total
n/a
A
$ 3,484,787
13.09%
None of the U.S. Government Agency Securities investments are individually over 5% of the total investment portfolio.
Municipal Bonds
Scott County, Minnesota
Aal
n/a
$ 90,095
0.34%
City of Glencoe, Minnesota
Al
n/a
100,019
0.38%
City of North Mankato, Minnesota
n/a
AA
55,080
0.21%
Linn County, Iowa
Aaa
n/a
200,796
0.75%
State of California
Aa3
AA-
1,484,620
5.58%
City of Elbow Lake, Minnesota
n/a
A
100,716
0.38%
City of Ennis, Texas
n/a
AA-
428,685
1.61%
State of Connecticut
Aa3
AA-
913,242
3.43%
State of New Mexico Finance Authority
Aa2
AA+
584,082
2.19%
State of Florida Board of Administrative Finance
Aa3
AAA
504,045
1.89%
Metropolitan Council, Minnesota
Aaa
AAA
474,696
1.78%
Katonah School District, New York
Aal
n/a
114,038
0.43%
Lake County School District, Illinois
Aa2
AA+
738,031
2.77%
Lincoln Consolidated School District, Michigan
n/a
AA-
500,310
1.88%
City of Portsmouth, Virginia
Aa2
AA
503,270
1.89%
Swift County, Minnesota
n/a
AA-
322,355
1.21%
Pinckney School District, Michigan
n/a
AA-
174,755
0.66%
Milan School District, Michigan
n/a
AA-
502,596
1.89%
City of Kaukauna, Wisconsin
n/a
AA-
211,090
0.79%
Milwaukee County, Wisconsin
Aa2
AA
495,890
1.86%
Total
$ 8,498,411
31.93%
The following is a summary of total deposits and investments as of December 31, 2016:
Deposits
Investments
Petty Cash and Change Funds
Total
$ 3,622,032
26,613,317
600
$ 30,235,949
The City's deposits and investments as of December 31, 2016 are presented in the basic financial statements as follows:
Statement of Net Position
Statement of Fiduciary Net Position
Total
50
$ 27,328,155
2,907,794
$ 30,235,949
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Interest Rate Risk — This is the risk that the market values of the securities in the City's investment portfolio would decrease
due to changes in market interest rates. The City identifies interest rate risk within the second and fourth objectives of the City's
investment policy, which are liquidity and return on investment. The City attempts to limit its exposure to interest rate risk by
keeping the investment portfolio sufficiently liquid to meet cash flow requirements, while still attempting to obtain a reasonable
return on investment. The City also addresses interest rate risk by attempting to create proportions in the maturities of the City's
investment portfolio which places longer term investments higher on the yield curve than those shorter term investments.
Credit Risk — This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota
Statutes limits allowable investments to those that are in the top two ratings issued by nationally recognized statistical rating
organizations. The City's investment policy also addresses credit risk by further limiting investments to the list provided
within Note 1-D.
Concentration of Credit Risk — This is the risk of loss attributed to the magnitude of the City's investment in any single issuer
The first objective of the City's investment policy is safety. To obtain this objective, diversification is to be considered in the
type of investment, maturity and the issuer of the respective investments. Each of the City's certificates of deposit are
purchased in amounts not exceeding federal deposit insurance. The tables above outline the concentrations of the City's other
investment types, including U.S. Government Agency Securities and Municipal Bonds.
Custodial Credit Risk — This is the risk that in the event of the failure of a counterparty to an investment, the City will not be
able to recover the value of an investment or collateral securities that are in possession of an outside party. In accordance with
the City's investment policy, all investment securities shall be held by a single safekeeping agent in the name of the City.
51
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
B. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 was as follows:
Governmental Activities:
Capital Assets, not Being Depreciated:
Land
Construction in Progress
Total Capital Assets, not Being Depreciated
Capital Assets, Being Depreciated:
Buildings and Building Improvements
Land Improvements
Machinery and Equipment
Infrastructure
Total Capital Assets, Being Depreciated
Less Accumulated Depreciation for:
Buildings and Building Improvements
Land Improvements
Machinery and Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets Being Depreciated - Net
Governmental Activities Capital Assets - Net
Beginning Ending
Balance Increases Decreases Balance
$ 1,959,823 $ - $ - $ 1,959,823
140,373 2,220,017 (92,954) 2,267,436
2,100,196 2,220,017 (92,954) 4,227,259
6,471,210 -
- 6,471,210
4,885,041 -
- 4,885,041
3,084,605 362,476
(130,491) 3,316,590
18,128,806 1,380,439
- 19,509,245
32,569,662 1,742,915 (130,491) 34,182,086
1,497,086
155,612
- 1,652,698
1,975,911
198,870
- 2,174,781
1,642,625
280,977
(125,218) 1,798,384
4,522,781
646,142
- 5,168,923
9,638,403 1,281,601 (125,218) 10,794,786
22,931,259 461,314 (5,273) 23,387,300
$ 25,031,455 $ 2,681,331 $ (98,227) $ 27,614,559
Depreciation expense was charged to the functions of the City as follows:
Governmental Activities:
General Government
Public Safety
Public Works
Culture and Recreation
Total Depreciation Expense - Governmental Activities
52
$ 20,138
3,985
968,002
289,476
$ 1,281,601
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Beginning Ending
Balance Increases Decreases Balance
Business -type Activities:
Capital Assets, not Being Depreciated:
Land $ 550,079 $ - $ - $ 550,079
Construction in progress 78,389 2,444,179 - 2,522,568
Total Capital Assets, not Being Depreciated
628,468
2,444,179
- 3,072,647
Capital Assets, Being Depreciated:
Machinery and Equipment
378,554
52,919
- 431,473
Infrastructure
51,203,233
1,104,850
- 52,308,083
Total Capital Assets, Being Depreciated
51,581,787
1,157,769
- 52,739,556
Less Accumulated Depreciation for:
Machinery and Equipment
122,710
37,382
- 160,092
Infrastructure
12,005,975
1,308,022
- 13,313,997
Total Accumulated Depreciation 12,128,685 1,345,404 - 13,474,089
Total Capital Assets Being Depreciated - Net 39,453,102 (187,635) - 39,265,467
Business -type Activities Capital Assets - Net $ 40,081,570 $ 2,256,544 $ - $ 42,338,114
Depreciation expense was charged to the functions of the City as follows:
Business -type Activities:
Water Utility $ 481,736
Sanitary Sewer Utility 839,617
Storm Water Utility 24,051
Total Depreciation Expense - Business -type Activities $ 1,345,404
C. CONSTRUCTION COMMITMENTS
At December 31, 2016 the City had construction project contracts in progress. The commitments related to remaining contract
balances are summarized as follows:
Project
80th Street Improvement Project
Quaday Avenue Extension Project
53
Contract Remaining
Amount Commitment
$ 805,026 $ 97,329
505,136 40,266
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
D. INTERFUND BALANCES AND TRANSFERS
At December 31, 2016, the composition of balances for due to/from other funds of the City were as follows:
Fund
Major Governmental Funds:
General
Debt Service
Nonmajor Governmental Funds:
Special Revenue Funds
Tax Increment District No. 1
Capital Project Funds
Odean Improvements
Capital Improvements
80th Street Improvements
Total
Due from Due to
Other Funds Other Funds
$ 16,278 $ -
- 338,830
- 16,278
- 5,425
676,564 -
- 332,309
$ 692,842 $ 692,842
Interfund due to/from balances are representative of lendingiborrowing arrangements to cover deficit cash balances at the end
of the fiscal year. Balances in both the Debt Service and Odean Improvements funds will be repaid with the future collection
of special assessments on benefiting property owners. The balance in the Tax Increment District No. 1 fund will be repaid
with future collections of tax increment, which is expected to begin in 2018. The balance in the 80th Street Improvement fund
will be repaid with reimbursements from Independent School District 728 as the project was initiated by the construction of
Prairie View Elementary and Middle School located in the City.
54
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Transfers between funds made during the year ended December 31, 2016 were as follows:
Fund
Major Governmental Funds:
General
Debt Service
Nonmajor Governmental Funds:
Revolving Capital Equipment
Municipal Buildings
Total Governmental Funds
Major Proprietary Funds:
Water Utility
Sanitary Sewer Utility
Total Proprietary Funds
Total All Funds
Transfer In Transfer Out
136,755 $ 460,212
51,120 -
460,212 -
- 1,120
648,087 461,332
43,439
143,316
- 186,755
$ 648,087 $ 648,087
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by
another fund or to provide additional capital and infrastructure funding. In addition, interfund transfers are occasionally
authorized to allow redistribution of resources between funds for the most efficient use of funds. In 2016, the following
transfers were made between funds:
• The General fund transferred $460,212 to the Revolving Capital Equipment fund in accordance with the City's fund
balance policy, where any balance exceeding the minimum fund balance is set aside for future capital items.
• The Water and Sanitary Sewer funds transferred $33,439 and $103,316 respectively to the General fund to reduce
Personnel and Administrative Service costs.
• The Water and Sanitary Sewer funds transferred $10,000 and $40,000 to the Debt Service fund to contribute their
portion of the debt service associated with the purchase of the Jet Vac truck.
• The Municipal Buildings fund transferred $1,120 to the Debt Service fund to close out the remaining fund balance.
55
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
E. LONG-TERM DEBT
Governmental Activities
The City issued general obligation bonds to provide funding for the acquisition and construction of major capital facilities
and construction of infrastructure in the governmental activities. General obligation bonds have also been issued to
refinance general obligation improvement bonds, which were originally intended to be fully repaid with collections of special
assessments. All long-term indebtedness outstanding is backed by the full faith and credit of the City. Bonds in the
governmental activities will be retired with future property tax levies and collections of special assessments. In the event
that a deficiency exists because of unpaid or delinquent taxes or special assessments at the time a debt service payment is
due, the City must provide resources to cover the deficiency until other resources are available. At the end of the current
year, there are $4,695,162 of assets accumulated in the debt service funds for future debt service. Included within those
accumulated assets, there are $6,578 of delinquent special assessments receivable, of which collection is uncertain.
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/16
General Obligation Bonds:
$ 1,080,000
$ 202,748
2018
1,115,000
180,225
Equipment Certificates, Series 2010A
2.00-3.25%
1/28/2010
7/15/2019
$ 385,000
$ 130,000
Refunding Bonds, Series 2010B
2.00-3.00%
11/30/2010
12/1/2021
3,705,000
2,285,000
Refunding Bonds, Series 2010D
2.00-3.60%
11/30/2010
2/1/2028
1,220,000
1,140,000
Refunding Bonds, Series 2011A
2.00-3.20%
12/21/2011
2/1/2028
4,640,000
3,915,000
Refunding Bonds, Series 2012A
2.00%
3/14/2012
12/1/2021
1,400,000
1,005,000
Total - Bonded Indebtedness
$ 11,350,000
8,475,000
Other Liabilities:
Unamortized Bond Premium
35,857
Compensated Absences Payable
71,167
Total Governmental Activities $ 8,582,024
Annual debt service requirements to maturity for governmental activities long-term indebtedness are as follows:
Year Ending
December 31
Governmental Activities
General Obligation Bonds
Principal Interest
2017
$ 1,080,000
$ 202,748
2018
1,115,000
180,225
2019
1,145,000
155,655
2020
1,160,000
129,344
2021
1,180,000
100,925
2022-2026
1,980,000
236,844
2027-2028
685,000
22,595
Total
$ 8,345,000
$ 1,028,336
56
Equipment Certificates
Principal Interest
45,000 $ 4,000
45,000 2,650
40,000 1,300
$ 130,000 $ 7,950
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Business -type Activities
The City issued general obligation bonds to provide funding for the acquisition and construction of major capital facilities
and construction of infrastructure in the business -type activities. All long-term indebtedness outstanding is backed by the
full faith and credit of the City. Bonds in the business -type activities will be retired with the net revenues of the Water and
Sanitary Sewer funds. (Net revenues are defined as the excess of gross revenues and earnings over the normal, reasonable
and current costs of operating and maintenance). In the event that a deficiency exists because of inadequate net revenues
at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are
available. At the end of the current year, the Water and Sanitary Sewer funds provided net revenues of $3,687,925, which
accounts for a debt -service coverage ratio of 122.62%.
Total Business -type Activities $ 26,460,326
Annual debt service requirements to maturity for business -type activities long-term indebtedness are as follows:
Year Ending
December 31
Business -type Activities
General Obligation Bonds
Principal Interest
2017
$ 2,035,000 $
Final
2018
2,130,000
884,710
Interest
Maturity
Original
Payable
2,335,000
Rates Date
Date
Issue
12/31/16
General Obligation Bonds:
12,130,000
1,790,343
2027
2,400,000
Revenue Bonds, Series 2009A
4.00-4.13% 12/1/2009
12/1/2027
$ 6,360,000
$ 6,360,000
Revenue Bonds, Series 2010C
2.00 - 5.00% 11/30/2010
12/1/2026
21,300,000
19,300,000
Total - Bonded Indebtedness
$ 27,660,000
25,660,000
Other Liabilities:
Unamortized Bond Premium
788,820
Compensated Absences Payable
11,506
Total Business -type Activities $ 26,460,326
Annual debt service requirements to maturity for business -type activities long-term indebtedness are as follows:
Year Ending
December 31
Business -type Activities
General Obligation Bonds
Principal Interest
2017
$ 2,035,000 $
966,110
2018
2,130,000
884,710
2019
2,220,000
799,510
2020
2,335,000
710,710
2021
2,410,000
640,660
2022-2026
12,130,000
1,790,343
2027
2,400,000
99,000
Total $ 25,660,000 $ 5,891,043
57
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Changes in Long -Term Liabilities
Long-term liability activity for the year ended December 31, 2016 was as follows:
Governmental Activities:
Bonds Payable:
General Obligation Bonds
Equipment Certificates
Total Bonded Indebtedness
Unamortized Bond Premium
Compensated Absences
Total - Governmental
Business -type Activities:
Bonds Payable:
General Obligation Bonds
Unamortized Bond Premium
Compensated Absences
Total - Business -type
Grand Total Long -Term Liabilities
Beginning
Balance Additions Reductions
Ending Due Within
Balance One Year
$ 9,510,000 $ - $ (1,165,000) $ 8,345,000 $ 1,080,000
175,000 - (45,000) 130,000 45,000
9,685,000 - (1,210,000) 8,475,000 1,125,000
43,029 - (7,172) 35,857 -
79,566 100,965 (109,364) 71,167 14,233
9,807,595 100,965 (1,326,536) 8,582,024 1,139,233
27,660,000 - (2,000,000) 25,660,000 2,035,000
867,701 - (78,881) 788,820 -
7,714 21,292 (17,500) 11,506 2,301
28,535,415 21,292 (2,096,381) 26,460,326 2,037,301
$38,343,010 $ 122,257 $ (3,422,917) $ 35,042,350 $ 3,176,534
The General fund is typically used to liquidate the compensated absences payable for governmental activities.
F. CONDUIT DEBT OBLIGATIONS
Conduit debt obligations are certain limited -obligation revenue bonds or similar instruments issued for the express purpose of
providing capital financing for a specific third party. The City has issued various revenue bonds to provide funding to private
sector entities for projects deemed to be in the public interest. Although these bonds bear the name of the City, the City has no
obligation for such debt. Accordingly, the bonds are not reported as liabilities in the financial statements of the City.
As of December 31, 2016, the City's conduit debt consisted of the following:
Guardian Angels Senior Services - Engel Haus Assisted Living
Revenue Bonds, Series 2013
Kaleidoscope Charter School
Revenue Bonds, Series 2014A
Revenue Bonds, Series 2014B
58
$ 10,000,000
15,615,000
230,000
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
G. TAX ABATEMENTS
The City has entered into certain agreements for economic development purposes to either attract new businesses or retain
existing business operations within the City. The authority for the City to enter into such agreements comes from Minnesota
Statute §469. The City further has an established Business Subsidy Policy that provides evaluation criteria for any business
subsidy requests. As of December 31, 2016, the City has entered into two types of agreements.
Property Tax Abatements
For the year ended December 31, 2016, the City abated property taxes totaling $81,931. Details of each agreement and
the abatement for the current year are as follows:
• The City has entered into a tax abatement agreement with Duke Realty for land acquisition costs paid by the developer
that ultimately allowed for the City to construct street infrastructure within the Gateway North industial park. The
agreement outlines that 30 percent of taxes payable in 2008-2017 will be abated by the City, to a maximum value
of $160,000. The abatement amounted to $14,931 in the current year.
• The City has entered into a tax abatement agreement with Duke Realty for land acquisition costs paid by the developer
that ultimately allowed for the City to construct street infrastructure within the Gateway North industial park. The
agreement outlines that 50 percent of taxes payable in 2016-2022 will be abated by the City, to a maximum value
of $340,000. The abatement amounted to $62,278 in the current year.
• The City has entered into a tax abatement agreement with Family Speech & Therapy Services for costs to upgrade
and provide rehabilitation of an existing commercial building within the City. The agreement outlines that 100 percent of
taxes payable in 2014-2019 will be abated by the City, to a maximum value of $25,000. The abatement amounted to
$4,722 in the current year.
Tax Increment Financing
For the year ended December 31, 2016, the Tax Increment Financing District within the City did not generate any increment
and respectively the City did not make any payments to the developer. Details of the agreement are as follows:
Tax Increment Financing District No. 1 was established in 2015 for the purpose of promoting industrial development
on a parcel owned by the City which had been obtained through the tax forfeiture process. The parcel would not have
been developed but -for tax increment financing given the existing special assessments and the extraordinary amount
of soil improvements. Under the agreement, up to $694,487 of costs incurred by the developer will be reimbursed
through a tax increment revenue note, payable beginning in 2018 and concluding in 2027. Payments on the tax increment
revenue note are only made to the extent of increment generated by the district. The improvements to the site have
just recently been completed, and the City anticipates increment generation will begin with taxes payable 2018.
59
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
H. FUND EQUITY
Net position reported in the government -wide statement of net position at December 31, 2016 include the following:
Governmental Activities
10,745,858
Net Investment in Capital Assets:
$ 34,142,149
Cost of Capital Assets
$ 38,409,345
Less: Accumulated Depreciation
(10,794,786)
Less: Related Long -Tenn Debt Outstanding
(8,510,857)
Total Net Investment in Capital Assets
19,103,702
Restricted for Debt Service
Fund Balance - Governmental Fund Financial Statements 1,933,757
Add: Unavailable Revenue - Special Assessments 2,420,698
Less: Accrued Interest Payable (61,866)
Total Restricted for Debt Service 4,292,589
Unrestricted
10,745,858
Total Governmental Activities Net position
$ 34,142,149
Business -type Activities
Net Investment in Capital Assets:
Cost of Capital Assets
$ 55,812,203
Less: Accumulated Depreciation
(13,474,089)
Less: Related Long -Term Debt Outstanding
(26,448,820)
Total Net Investment in Capital Assets
15,889,294
Unrestricted 15,248,794
Total Business -type Activities Net Position $ 31,138,088
Aggregated funds balances reported in the governmental funds balance sheet at December 31, 2016 include the following:
Governmental Funds
General Fund
Prepaid Items
Insurance Deductibles
Educational Programs
Debt Service
Prepaid Items
Debt Service
Nonmajor Governmental Funds
Street Light Replacement
Business Development Loans
City Buildings & Infrastructure
City Parks
Total Fund Balances
Nonspendable Restricted Committed Assigned
$ 110,973 $ - $ - $ -
- - - 172,408
20,000
2,000 - - -
- 1,931,757 - -
123,339 -
- - 296,490 -
- 6,491,262
- - - 729,995
$ 112,973 $ 1,931,757 $ 419,829 $ 7,413,665
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTE 4 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions
and natural disasters.
Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity
risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the
LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and reinsures through commercial
companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains
risk for the deductible portions of the insurance policies. The amount of those deductibles is considered immaterial to the
financial statements.
Workers' compensation coverage is provided through a pooled self-insurance program through the LMCIT. The respective
insurance policy is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is
known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. This
coverage is not subject to a deductible.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for
any of the past three years.
The City is subject to certain legal claims in the normal course of business. Management does not expect the resolution of
these claims will have a material impact on the City's financial condition or results of operations.
61
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTE 5 PENSION PLAN
Public Employee's Retirement Association
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple -employer defined benefit pension plan administered by the Public
Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees
Plan members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social
Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members must
participate in the Coordinated Plan.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be
modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan.
Members in plans that are at least 90 percent funded for two consecutive years are given 2.5 percent increases. Members
in plans that have not exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan
participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the
provisions in effect at the time they last terminated their public service.
General Employees Plan Benefits
Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years
of credit at termination or service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan
members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary
for each of the first ten years of service, and 2.7 percent for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7 percent for each remaining
year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent
for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available
when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989,
normal retirement age is the age for unreduced Social Security benefits capped at 66.
62
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
General Employees Fund Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1 percent and 6.5 percent, respectively,
of their annual covered salary in calendar year 2016. The City was required to contribute 11.78 percent of pay for Basic
Plan members and 7.5 percent for Coordinated Plan members in calendar year 2016. The City's contributions to the General
Employees Fund for years ended December 31, 2016, 2015 and 2014 were $96,567, $83,256, and $74,357. The City's
contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
General Employees Fund Pension Costs
At December 31, 2016, the City reported a liability of $1,607,662 for its proportionate share of the General Employees
Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution
of $6 million to the fund in 2016. The State of Minnesota is considered a non -employer contributing entity and the State's
contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net
pension liability associated with the City totaled $20,935. The net pension liability was measured as of June 30, 2016,
and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the
measurement period for employer payroll paid dates from July 1, 2015 through June 30, 2016, relative to the total employer
contributions received from all of PERA's participating employers. At June 30, 2016, the City's proportion share was
0.0198 percent which was an increase of 0.0003 percent from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $205,634 for its proportionate share of the
General Employees Plan's pension expense. In addition, the City recognized an additional $6,242 as pension expense
(and grant revenue) for its proportionate share of the State of Minnesota's contribution of $6 million to the General
Employees Fund.
At December 31, 2016, the City reported its proportionate share of the General Employees Plan's deferred outflows of
resources and deferred inflows of resources, and its contributions subsequent to the measurement date, related to pensions
from the following sources:
Description
Differences Between Expected and Actual Economic Experience
Changes in Actuarial Assumptions
Differences Between Projected and Actual Investment Earnings
Changes in Proportion
Contributions Paid Subsequent to the Measurement Date
Totals
63
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ - $ 130,076
314,782 -
304,038 -
11,661 63,415
48,284 -
$ 678,765 $ 193,491
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Deferred outflows totaling $48,284 related to pensions resulting from the City's contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year Pension
Ended Expense
December 31, Amount
2017
$ 110,075
2018
110,077
2019
158,768
2020
58,070
2021
-
Thereafter
-
Total
$ 436,990
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016, actuarial valuation was determined using the entry age normal actuarial cost
method and the following actuarial assumptions:
Inflation
Active Member Payroll Growth
Investment Rate of Return
2.50% per year
3.25% per year
7.50%
Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants
were based on the RP -2014 tables for the General Employees Plan male or females, as appropriate, with slight adjustments.
Cost of living benefit increases for retirees are assumed to be I percent for all future years for the General Employees Plan.
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of actuarial experience studies. The most
recent four-year experience study in the General Employees Plan was completed in 2015.
The following changes in actuarial assumptions occurred in 2016:
• The assumed post-retirement benefit increase rate was changed from 1 percent per year through 2035 and 2.5 percent
per year thereafter to 1 percent per year for all future years.
• The assumed investment return and single discount rates were changed from 7.9 percent to 7.5 percent.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary
increases, payroll growth and inflation were decreased to 3.25 percent for payroll growth and 2.50 percent for inflation.
•'
CITY OF OTSEGO, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2016
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the
long-term expected rate of return on a regular basis using a building-block method in which best -estimate ranges of expected
expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected
long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target
allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Domestic Stocks
International Stocks
Bonds
Alternative Assets
Cash
Total
F. DISCOUNT RATE
Long -Term
Target Expected Real
Allocation Rate of Return
45.00%
5.50%
15.00%
6.00%
18.00%
1.45%
20.00%
6.40%
2.00%
0.50%
100.00%
The discount rate used to measure the total pension liability in 2016 was 7.5 percent, a reduction from the 7.9 percent used in
2015. The projection of cash flows used to determine the discount rate assumed that contributions from Plan members and
employers will be made at rates set in Minnesota Statutes. Based on those assumptions, the fiduciary net position of the
General Employees Fund was projected to be available to make all projected future benefit payments of current Plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using
the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability
would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current rate.
6.50% 7.50% 8.50%
City's Proportionate Share One Point Current One Point
of the Net Pension Liability Decrease Rate Increase
General Employees Fund
H. PENSION PLAN FIDUCIARY NET POSITION
$ 2,283,356 $ 1,607,662 $ 1,051,073
Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report
that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org.
65
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CITY OF OTSEGO, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS*)
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
GENERAL EMPLOYEE'S RETIREMENT FUND
This supplementary information is provided prospectively beginning with the Year Ended December 31, 2015.
67
Plan Fiduciary
Net Position
as a Percentage
of the Total
Pension Liability
68.91%
78.19%
City's
Proportionate ($)
Share of the Net
Pension Liability
City's
State's
and the State's
Proportionate (%)
City's
City's
Proportionate (S)
Proportionate ($)
Share of Net
Proportionate (%)
Proportionate ($)
Share of the Net
Share of the Net
Pension Liability
Fiscal
Share of
Share of
Pension Liability
Pension Liability
City's
Compared With
Year
Net Pension
Net Pension
Associated With
Associated With
Covered
Covered
Ending
Liability
Liability
the City
the City
Payroll
Payroll
June 30, 2016
0.0198%
$ 1,607,662
$ 20,935
$ 1,628,597
$ 1,136,013
141.52%
June 30, 2015
0.0195%
1,010,592
-
1,010,592
1,124,606
89.86%
This supplementary information is provided prospectively beginning with the Year Ended December 31, 2015.
67
Plan Fiduciary
Net Position
as a Percentage
of the Total
Pension Liability
68.91%
78.19%
CITY OF OTSEGO, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS*)
SCHEDULE OF CITY'S CONTRIBUTIONS
GENERAL EMPLOYEE'S RETIREMENT FUND
Year
Ending
December 31, 2016
December 31, 2015
Statutorily
Required
Contributions
Contributions
in Relation to
Statutorily
Required
Contributions
96,567 $ 96,567
83,256 83,256
Contributions
Contribution City's as a Percentage
(Excess) Covered of Covered
Deficiency Payroll Payroll
This supplementary information is provided prospectively beginning with the Year Ended December 31, 2015.
•i
1,287,564 7.50%
1,110,085 7.50%
CITY OF OTSEGO, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 2016
NOTE 1 GENERAL EMPLOYEES FUND
A. CHANGES FOR 2016
Changes in Actuarial Assumptions
• The assumed post-retirement benefit increase was changed from 1.00% per year through 2035 and 2.50% per year
thereafter to 1.00% per year for all future years.
• The assumed investment return was changed from 7.90% to 7.50%. The single discount rate was changed
from 7.90% to 7.50%.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary
increases and payroll growth were decreased by 0.25% to 3.25%. Inflation was decreased 0.25% to 2.50%.
B. CHANGES FOR 2015
Changes in Plan Provisions
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which
increased the total pension liability by $1.10 billion, and increased the fiduciary plan net position by $892 million. Upon
consolidation, state and employer contributions were revised.
Changes in Actuarial Assumptions
• The assumed post-retirement benefit increase rate was changed from 1.00% per year through 2030 and 2.50% per
year thereafter to 1.00% per year through 2035 and 2.50% per year thereafter.
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CITY OF OTSEGO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2016
ASSETS
Cash and Investments
Receivables
Accounts
Special Assessments
Current
Deferred
Delinquent
Due from Other Governments
Due from Other Funds
Total Assets
LIABILITIES
Accounts Payable
Due to Other Funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Special Assessments
FUND BALANCES
Committed
Street Light Replacement
Business Development Loans
Assigned
City Buildings & Infrastructure
City Parks
Unassigned (Deficits)
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
72
Total
Special Capital Nonmajor
Revenue Project Governmental
$ 412,921 $ 6,400,779 $ 6,813,700
6,908 - 6,908
- 1,286
1,286
- 650,493
650,493
- 2,334
2,334
- 705,407
705,407
- 676,564
676,564
419,829 8,436,863
8,856,692
- 490,040
490,040
16,278 337,734
354,012
16,278 827,774
844,052
- 652,827
652,827
123,339 - 123,339
296,490 - 296,490
6,491,262 6,491,262
729,995 729,995
(16,278) (264,995) (281,273)
403,551 6,956,262 7,359,813
$ 419,829 $ 8,436,863 $ 8,856,692
CITY OF OTSEGO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
REVENUES
Property Taxes
Intergovernmental
Charges for Services
Special Assessments
Investment Earnings (net)
Miscellaneous
Total Revenues
EXPENDITURES
Current
Public Works
Economic Development
Capital Outlay
General Government
Public Works
Culture and Recreation
Economic Development
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Sales of Capital Assets
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - January 1
Fund Balance - December 31
73
9,326 - 9,326
98,209 - 98,209
-
108,180
Total
Special
Capital
Nonmajor
Revenue
Project
Governmental
$ 88,814
$ 737,040
$ 825,854
-
2,042,160
2,042,160
19,801
968,163
987,964
-
121,449
121,449
3,188
57,964
61,152
-
13,510
13,510
111,803
3,940,286
4,052,089
9,326 - 9,326
98,209 - 98,209
-
108,180
108,180
7,400
3,215,243
3,222,643
-
885,342
885,342
-
105,762
105,762
114,935
4,314,527
4,429,462
(3,132)
(374,241)
(377,373)
-
460,212
460,212
-
31,160
31,160
-
(1,120)
(1,120)
-
490,252
490,252
(3,132)
116,011
112,879
406,683
6,840,251
7,246,934
$ 403,551 $ 6,956,262 $ 7,359,813
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CITY OF OTSEGO, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
A special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or
committed to expenditure for specified purposes other than debt service or capital projects.
Street Lighting
This fund accounts for the electrical service, maintenance, repair and replacement of street lights within the City's
above standard street -lighting district for commercially developed areas. The primary funding source of the fund
is generated through charges for services imposed upon the benefitting properties in the district.
Revolving
This fund was established to provide for economic development subsidies and loans to be provided to business
entities in the City through the City's Economic Development Authority (EDA).
Tax Increment District No. 1 - Great River Centre
This fund was established to account for the collection of tax increment generated revenues for parcels within the
District. The District encompasses two parcels in the Great River Centre commericial and industrial area. The
increment generated is used for specific economic development incentives within the District.
75
CITY OF OTSEGO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2016
ASSETS
Cash and Investments
Receivables
Accounts
Total Assets
LIABILITIES
Due to Other Funds
FUND BALANCES
Committed
Street Light Replacement
Business Development Loans
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances (Deficits;
76
Total
Nonmajor
Street
Revolving
Tax Increment
Special
Lighting
Loans
District No. 1
Revenue
$ 116,431
$ 296,490
$ -
$ 412,921
6,908
-
-
6,908
123,339
296,490
-
419,829
-
-
16,278
16,278
123,339
-
-
123,339
-
296,490
-
296,490
-
-
(16,278)
(16,278)
123,339
296,490
(16,278)
403,551
$ 123,339
$ 296,490
$ -
$ 419,829
76
CITY OF OTSEGO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (DEFICITS)
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
REVENUES
Property Taxes
Charges for Services
Investment Earnings (net)
Total Revenues
EXPENDITURES
Current
Public Works
Economic Development
Capital Outlay
Public Works
Total Expenditures
Net Change in Fund Balance
Fund Balance - January 1
Fund Balance (Deficit) - December 31
Street Revolving
Lighting Loans
$ - $ 88,814
19,801 -
903 2,285
20,704 91,099
Total
Nonmajor
Tax Increment Special
District No. 1 Revenue
$ - $ 88,814
- 19,801
- 3,188
- 111,803
9,326
-
-
9,326
-
81,931
16,278
98,209
7,400
-
-
7,400
16,726
81,931
16,278
114,935
3,978
9,168
(16,278)
(3,132)
119,361
287,322
-
406,683
$ 123,339 $
296,490
$ (16,278) $
403,551
77
CITY OF OTSEGO, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other
capital assets.
Pavement Management
This fund was established to provide funds and to account for the expenditure of such funds, for costs associated
with the City's street maintenance and replacement plan adopted annually within the Capital Improvement Plan.
Annual projects may include: fog & seal coating, crack filling, paint striping, patching and asphalt overlays.
Trails Management
This fund was established to provide funds and to account for the expenditure of such funds, for costs associated
with the City's trail maintenance plan adopted annually within the Capital Improvement Plan. Annual projects will
typically include: crack filling, patching and seal coating.
Park Development
This fund was established to accumulate funds that will be used to provide for the acquisition and construction of
new park sites, buildings and facilities throughout our growing City.
Parks Capital Equipment
This fund was established to accumulate funds for major maintenance and future replacement of equipment within
the City's park system.
Revolving Capital Equipment
This fund was established to provide funds and to account for the expenditure of such funds, for costs associated
with the replacement of capital equipment, most significantly the City's machinery and vehicle fleet.
Community Facilities
This fund was established to accumulate funds that will be used to provide for the costs associated with the
improvements of existing City facilities and the acquisition and construction of additional City facilities.
Collector Streets
This fund was established to accumulate funds derived from ongoing residential and commercial development that
will provide for the costs associated with the construction of future arterial collector street infrastructure.
Fire Reserve
This fund was established to accumulate funds that will be used to finance the costs associated with the future
construction of a fire department building and the capital equipment that will be housed within.
Municipal State -Aid for Consturction
This fund was established to account for the State allotment of construction aid. The source of the State funding is
provided for through collection of gasoline taxes. The funds accumulated are used on transportation related
construction projects.
Watershed Districts
This fund was established to provide funds and to account for the expenditure of such funds, for costs associated
with the maintenance of major water drainage system ditches throughout the City.
CITY OF OTSEGO, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS (CONTINUED)
Odean Improvements
This fund was established to track the expenditures incurred for major improvements made to Odean Avenue in
1998. The outstanding special assessments to the benefitting property owners provide the funding for the costs.
Capital Improvements
This fund was established to accumulate resources that may be used to internally finance future City projects.
Slabtown Improvements
This fund was established to track the expenditures incurred for infrastructure improvements to the Slabtown
area. The outstanding special assessments to the benefitting property owners provide the funding for the costs.
80th Street Improvements
This fund was established to track the expenditures incurred for infrastructure improvements currently ongoing
on 80th Street, from Marlowe to MacIver. Independent School District 728 is constructing a school near this
location and is the driver for the improvement to occur. The School District will be providing the funds necessary.
Municipal Buildings
This fund was established to accumulate funds that will be used to provide for the costs associated with the
improvements of existing City buildings and the acquisition and construction of additional City buildings.
79
CITY OF OTSEGO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2016
KH
Parks
Revolving
Pavement
Trails
Park
Capital
Capital
Management
Management
Development
Equipment
Equipment
ASSETS
Cash and Investments
$ 470,794
$ 3,260
$ 502,973
$ 230,895
$ 613,718
Receivables
Special Assessments
Current
-
-
-
-
-
Deferred
97,591
Delinquent
508
-
-
-
-
Due from Other Governments
-
Due from Other Funds
-
-
-
-
Total Assets
568,893
3,260
502,973
230,895
613,718
LIABILITIES
Accounts Payable
1,458
-
3,873
-
-
Due to Other Funds
-
-
-
-
-
Total Liabilities
1,458
3,873
-
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Special Assessments
98,099
-
FUND BALANCES
Assigned
City Buildings & Infrastructure
469,336
3,260
-
-
613,718
City Parks
-
-
499,100
230,895
-
Unassigned
-
-
-
-
-
Total Fund Balances (Deficits)
469,336
3,260
499,100
230,895
613,718
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits)
$ 568,893
$ 3,260
$ 502,973
$ 230,895
$ 613,718
KH
Community
Collector
Fire
MSA
Watershed
Odean
Capital
Facilities
Streets
Reserve
Construction
Districts
Improvements
Improvements
$ 487,230
$ 841,175
$ 2,064,464
$ 73,809
$ 609,181
$ -
$ 489,712
-
-
542
-
-
744
24,481
-
17,500
498,053
317
1,507
-
-
2
-
-
119,077
262,090
-
-
-
-
-
-
676,564
487,230
865,973
2,066,513
192,886
609,181
17,500
1,927,165
12,255
-
-
346,144
-
-
28,067
-
-
5,425
12,255
-
346,144
5,425
28,067
-
24,798
1,507
-
17,500
498,055
474,975
841,175
2,065,006
609,181
-
1,401,043
-
(153,258)
-
(5,425)
474,975
841,175
2,065,006
(153,258)
609,181
(5,425)
1,401,043
$ 487,230
$ 865,973
$ 2,066,513
$ 192,886
$ 609,181
$ 17,500
$ 1,927,165
MA
CITY OF OTSEGO, MINNESOTA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2016
RA
Total
Nonmajor
Slabtown
80th Street Municipal
Capital
Improvements
Improvements Buildings
Projects
ASSETS
Cash and Investments
$ 13,568
$ - $
$ 6,400,779
Receivables
Special Assessments
Current
-
1,286
Deferred
12,868
650,493
Delinquent
-
2,334
Due from Other Governments
324,240
705,407
Due from Other Funds
-
-
676,564
Total Assets
26,436
324,240
8,436,863
LIABILITIES
Accounts Payable
-
98,243
490,040
Due to Other Funds
332,309
337,734
Total Liabilities
-
430,552
827,774
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Special Assessments
12,868
-
652,827
FUND BALANCES
Assigned
City Buildings & Infrastructure
13,568
6,491,262
City Parks
-
729,995
Unassigned
-
(106,312)
(264,995)
Total Fund Balances (Deficits)
13,568
(106,312)
6,956,262
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits)
$ 26,436
$ 324,240 $
$ 8,436,863
RA
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CITY OF OTSEGO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (DEFICITS)
NONMAJOR CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
REVENUES
Property Taxes
Intergovernmental
Charges for Services
Special Assessments
Investment Earnings (net)
Miscellaneous
Total Revenues
EXPENDITURES
Capital Outlay
General Government
Public Works
Culture and Recreation
Economic Development
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Sales of Capital Assets
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (Deficit) - January 1
Fund Balance (Deficit) - December 31
Parks
Revolving
Pavement
Trails
Park
Capital
Capital
Management
Management
Development
Equipment
Equipment
$ 339,200
$ 25,250
$ $
54,590
$ 168,000
314,483
-
-
-
-
481,075
29,393
-
-
-
-
2,484
26
5,685
1,588
3,998
-
-
-
3,510
-
685,560
25,276
486,760
59,688
171,998
532,150
-
-
332,546
-
25,255
817,273
19,424
532,150
25,255
817,273
-
351,970
153,410
21
(330,513)
59,688
(179,972)
-
-
-
460,212
31,160
-
-
-
-
491,372
153,410
21
(330,513)
59,688
311,400
315,926
3,239
829,613
171,207
302,318
$ 469,336
$ 3,260
$ 499,100 $
230,895
$ 613,718
Community
Collector
Fire
MSA
Watershed
Odean Capital
Facilities
Streets
Reserve
Construction
Districts
Improvements Improvements
$
$
$ 150,000
$ -
$
$ $
-
-
561,586
262,090
-
277,456
-
-
209,632
-
4,748
1,079
-
83,154
3,809
5,277
15,516
6,844
12,737
10,000
-
-
-
-
13,809
287,481
166,595
561,586
216,476
357,981
-
-
-
-
-
- 108,180
-
-
755,928
- 584,522
23,390
-
-
-
- -
-
-
-
- 105,762
23,390
-
-
755,928
-
- 798,464
(9,581)
287,481
166,595
(194,342)
216,476
(440,483)
(9,581)
287,481
166,595
(194,342)
216,476
- (440,483)
484,556
553,694
1,898,411
41,084
392,705
(5,425) 1,841,526
$ 474,975 $
841,175
$ 2,065,006
$ (153,258) $
609,181 $
(5,425) $ 1,401,043
MA
CITY OF OTSEGO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (DEFICITS)
NONMAJOR CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
(CONTINUED)
ME
Total
Nonmajor
Slabtown
80th Street
Municipal
Capital
Improvements
Improvements
Buildings
Projects
REVENUES
Property Taxes
$
$ -
$
$ 737,040
Intergovernmental
904,001
2,042,160
Charges for Services
-
968,163
Special Assessments
3,075
121,449
Investment Earnings (net)
-
57,964
Miscellaneous
-
-
13,510
Total Revenues
3,075
904,001
3,940,286
EXPENDITURES
Capital Outlay
General Government
-
108,180
Public Works
989,668
20,429
3,215,243
Culture and Recreation
-
-
885,342
Economic Development
-
-
105,762
Total Expenditures
-
989,668
20,429
4,314,527
Excess (Deficiency) of Revenues
Over (Under) Expenditures
3,075
(85,667)
(20,429)
(374,241)
OTHER FINANCING SOURCES (USES)
Transfers In
-
460,212
Sales of Capital Assets
31,160
Transfers Out
(1,120)
(1,120)
Total Other Financing Sources (Uses)
-
(1,120)
490,252
Net Change in Fund Balance
3,075
(85,667)
(21,549)
116,011
Fund Balance (Deficit) - January 1
10,493
(20,645)
21,549
6,840,251
Fund Balance (Deficit) - December 31
$ 13,568
$ (106,312)
$ -
$ 6,956,262
ME
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
87
CITY OF OTSEGO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
(With Comparative Actual Amounts for the Year Ended December 31, 2015)
Page 1 of 5
2016
2015
Variance with
Final Budget -
Budgeted
Amounts
Actual
Over
Actual
Original
Final
Amounts
(Under)
Amounts
REVENUES
Property Taxes
Current
$ 3,529,352
$ 3,529,352 $
3,477,971
$ (51,381)
$ 3,266,747
Delinquent
-
-
16,346
16,346
41,262
Penalties and interest
15,000
15,000
347
(14,653)
7,444
Total Property Taxes
3,544,352
3,544,352
3,494,664
(49,688)
3,315,453
Franchise Taxes
107,000
107,000
131,229
24,229
128,722
Licenses and Permits
Business Licenses
39,050
39,050
35,470
(3,580)
48,520
Rental Licenses
30,000
30,000
59,350
29,350
29,850
Other Licenses
750
750
1,780
1,030
1,700
Right of Way Permits
2,500
2,500
49,110
46,610
37,600
Building Permits
564,215
564,215
1,492,001
927,786
1,049,161
Other Permits
5,050
5,050
23,854
18,804
12,305
Total Licenses and Permits
641,565
641,565
1,661,565
1,020,000
1,179,136
Intergovernmental
State
Local Government Aid
127,590
127,590
-
(127,590)
123,947
MSA Maintenance
163,000
163,000
-
(163,000)
-
Police Aid
53,000
53,000
57,260
4,260
55,676
Other Aid & Grants
-
-
12,307
12,307
13,240
Local
Other Aid & Grants
-
-
-
-
2,500
Total Intergovernmental
343,590
343,590
69,567
(274,023)
195,363
Charges for Services
General Government
9,500
9,500
77,697
68,197
32,695
Public Works
6,000
6,000
149,681
143,681
90,108
Culture and Recreation
41,500
41,500
59,236
17,736
52,075
Total Charges for Services
57,000
57,000
286,614
229,614
174,878
Special Assessments
-
-
4,179
4,179
3,540
Fines and Forfeitures
-
-
16,223
16,223
11,998
Investment Earnings (net)
50,000
50,000
21,233
(28,767)
15,015
Miscellaneous
Refunds and Reimbursements
-
-
63,753
63,753
30,194
Contributions and Donations
25,250
25,250
6,259
Other
17,219
17,219
28,784
Total Miscellaneous
-
-
106,222
106,222
65,237
Total Revenues
4,743,507
4,743,507
5,791,496
1,047,989
5,089,342
CITY OF OTSEGO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
(With Comparative Actual Amounts for the Year Ended December 31, 2015)
Page 2 of 5
."
2016
2015
Variance with
Final Budget -
Budgeted Amounts
Actual
Over
Actual
Original
Final
Amounts
(Under)
Amounts
EXPENDITURES
General Government
City Council
Personal Services
36,918
36,918
32,637
(4,281)
31,333
Services and Other Charges
79,358
79,358
43,995
(35,363)
25,908
Total
116,276
116,276
76,632
(39,644)
57,241
Administration
Personal Services
367,416
367,416
385,165
17,749
296,339
Supplies
14,313
14,313
10,412
(3,901)
15,246
Services and Other Charges
87,738
87,738
39,276
(48,462)
68,298
Total
469,467
469,467
434,853
(34,614)
379,883
Elections
Personal Services
13,850
13,850
12,660
(1,190)
-
Supplies
13,600
13,600
4,970
(8,630)
1,003
Services and Other Charges
2,375
2,375
2,386
11
-
Total
29,825
29,825
20,016
(9,809)
1,003
Assessing
Services and Other Charges
76,941
76,941
76,623
(318)
70,537
Finance
Personal Services
228,006
228,006
247,226
19,220
223,736
Supplies
5,200
5,200
551
(4,649)
2,248
Services and Other Charges
55,325
55,325
58,950
3,625
115,981
Total
288,531
288,531
306,727
18,196
341,965
Information Technology
Supplies
5,000
5,000
2,616
(2,384)
3,707
Services and Other Charges
66,000
66,000
79,525
13,525
63,086
Total
71,000
71,000
82,141
11,141
66,793
Legal
Services and Other Charges
86,000
86,000
107,499
21,499
123,239
."
CITY OF OTSEGO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
(With Comparative Actual Amounts for the Year Ended December 31, 2015)
Page 3 of 5
2016
2015
Variance with
Final Budget -
Budgeted Amounts
Actual
Over
Actual
Original
Final
Amounts
(Under)
Amounts
EXPENDITURES (CONTINUED)
General Government (Continued)
Prairie Center
Personal Services
3,280
3,280
-
(3,280)
Supplies
15,500
15,500
9,806
(5,694)
4,267
Services and Other Charges
15,097
15,097
19,315
4,218
17,712
Total
33,877
33,877
29,121
(4,756)
21,979
City Hall & Public Works Garage
Supplies
7,750
7,750
11,563
3,813
9,659
Services and Other Charges
74,601
74,601
86,631
12,030
68,119
Total
82,351
82,351
98,194
15,843
77,778
Old Town Hall
Services and Other Charges
500
500
1,874
1,374
695
Total General Government
1,254,768
1,254,768
1,233,680
(21,088)
1,141,113
Public Safety
Police Services
Services and Other Charges
978,200
978,200
991,403
13,203
952,546
Public Safety Commission
Personal Services
750
750
690
(60)
-
Supplies
600
600
39
(561)
137
Services and Other Charges
1,500
1,500
(1,500)
-
Total
2,850
2,850
729
(2,121)
137
Fire Protection
Supplies
-
-
-
86
Services and Other Charges
497,462
497,462
494,831
(2,631)
455,281
Total
497,462
497,462
494,831
(2,631)
455,367
Building Inspections
Personal Services
88,493
88,493
97,291
8,798
70,885
Supplies
6,700
6,700
2,653
(4,047)
4,791
Services and Other Charges
151,395
151,395
208,559
57,164
168,445
Total
246,588
246,588
308,503
61,915
244,121
Emergency Management
Supplies
1,500
1,500
-
(1,500)
-
Services and Other Charges
5,400
5,400
418
(4,982)
400
Total
6,900
6,900
418
(6,482)
400
Animal Control
Services and Other Charges
13,500
13,500
12,101
(1,399)
11,460
Total Public Safety
1,745,500
1,745,500
1,807,985
62,485
1,664,031
CITY OF OTSEGO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
(With Comparative Actual Amounts for the Year Ended December 31, 2015)
Page 4 of 5
91
2016
2015
Variance with
Final Budget -
Budgeted Amounts
Actual
Over
Actual
Original
Final
Amounts
(Under)
Amounts
EXPENDITURES (CONTINUED)
Public Works
Streets Maintenance
Personal Services
450,441
450,441
449,616
(825)
410,964
Supplies
159,723
159,723
136,407
(23,316)
153,501
Services and Other Charges
79,517
79,517
55,171
(24,346)
65,640
Total
689,681
689,681
641,194
(48,487)
630,105
Engineering
Services and Other Charges
85,000
85,000
74,258
(10,742)
122,074
Street Lighting
Services and Other Charges
115,968
115,968
121,163
5,195
108,987
Fleet Management
Personal Services
76,377
76,377
81,141
4,764
76,873
Supplies
119,826
119,826
89,119
(30,707)
86,012
Services and Other Charges
12,100
12,100
3,745
(8,355)
10,473
Total
208,303
208,303
174,005
(34,298)
173,358
Total Public Works
1,098,952
1,098,952
1,010,620
(88,332)
1,034,524
Culture and Recreation
Parks Maintenance
Personal Services
195,774
195,774
182,699
(13,075)
145,663
Supplies
76,600
76,600
67,401
(9,199)
56,063
Services and Other Charges
109,432
109,432
100,849
(8,583)
113,885
Total
381,806
381,806
350,949
(30,857)
315,611
Recreation
Personal Services
96,396
96,396
121,174
24,778
92,688
Supplies
12,400
12,400
10,856
(1,544)
12,967
Services and Other Charges
42,600
42,600
49,870
7,270
43,338
Total
151,396
151,396
181,900
30,504
148,993
Heritage Preservation Commission
Personal Services
450
450
450
-
420
Supplies
500
500
498
(2)
170
Services and Other Charges
1,500
1,500
325
(1,175)
1,011
Total
2,450
2,450
1,273
(1,177)
1,601
Total Culture and Recreation
535,652
535,652
534,122
(1,530)
466,205
91
CITY OF OTSEGO, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 2016
(With Comparative Actual Amounts for the Year Ended December 31, 2015)
Page 5 of 5
92
2016
2015
Variance with
Final Budget -
Budgeted
Amounts
Actual
Over
Actual
Original
Final
Amounts
(Under)
Amounts
EXPENDITURES (CONTINUED)
Economic Development
Planning Commission
Personal Services
1,500
1,500
2,170
670
1,500
Supplies
-
-
-
-
24
Services and Other Charges
1,500
1,500
270
(1,230)
200
Total
3,000
3,000
2,440
(560)
1,724
Planning
Services and Other Charges
88,000
88,000
87,218
(782)
86,335
Economic Development
Services and Other Charges
14,300
14,300
8,667
(5,633)
8,152
Total Economic Development
105,300
105,300
98,325
(6,975)
96,211
Capital Outlay
General Government
1,000
1,000
6,325
5,325
9,017
Public Safety
11,500
11,500
21,303
9,803
2,478
Culture and Recreation
-
-
-
-
11,240
Total
12,500
12,500
27,628
15,128
22,735
Total Expenditures
4,752,672
4,752,672
4,712,360
(40,312)
4,424,819
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(9,165)
(9,165)
1,079,136
1,088,301
664,523
OTHER FINANCING SOURCES (USES)
Transfers In
136,755
136,755
136,755
-
122,276
Transfers Out
(127,590)
(127,590)
(460,212)
(332,622)
(1,289,914)
Total Other Financing Sources (Uses)
9,165
9,165
(323,457)
(332,622)
(1,167,638)
Net Change in Fund Balance
-
-
755,679
755,679
(503,115)
Fund Balance - January 1
2,890,523
2,890,523
2,890,523
-
3,393,638
Fund Balance - December 31
$ 2,890,523
$ 2,890,523
$ 3,646,202
$ 755,679
$ 2,890,523
92
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
93
CITY OF OTSEGO, MINNESOTA
COMBINING BALANCE SHEET
DEBT SERVICE FUND BY ACCOUNT
DECEMBER 31, 2016
ASSETS
Cash and Investments
Receivables
Special Assessments
Current
Deferred
Delinquent
Prepaid Items
Total Assets
LIABILITIES
Accounts Payable
Due to Other Funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Special Assessments
FUND BALANCES
Nonspendable
Restricted
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits)
M,
Series Series Series
2003A 2004 2012A
$ 2,008 $ - $ 632,436
- 1,526 -
3,473 151,365 556,626
6,414 164 -
11,895 153,055 1,189,062
- 313
150,760 -
- 150,760 313
9,888 151,528 556,626
2,007 (149,233) 632,123
2,007 (149,233) 632,123
$ 11,895 $ 153,055 $ 1,189,062
Series
Total
2010D
Series
Series
Series
Debt
& 2011A
2010B
2007B
2010A
Service
$ 1,396,360
$ 240,134
$ -
$ -
$ 2,270,938
-
-
-
-
1,526
1,510,192
-
192,464
-
2,414,120
-
-
-
-
6,578
-
-
-
2,000
2,000
2,906,552
240,134
192,464
2,000
4,695,162
625
313
313
313
1,877
-
-
187,883
187
338,830
625
313
188,196
500
340,707
1,510,192
-
192,464
-
2,420,698
-
-
-
2,000
2,000
1,395,735
239,821
(188,196)
(500)
1,931,757
1,395,735
239,821
(188,196)
1,500
1,933,757
$ 2,906,552
$ 240,134
$ 192,464
S 2,000
S 4,695,162
95
CITY OF OTSEGO, MINNESOTA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (DEFICITS)
DEBT SERVICE FUND BY ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2016
REVENUES
Property Taxes
Special Assessments
Total Revenues
EXPENDITURES
Debt Service
Principal
Interest
Fiscal Agent Fees
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
Transfers In
Net Change in Fund Balance
Fund Balance (Deficit) - January 1
Fund Balance (Deficit) - December 31
0
Series Series Series
2003A 2004 2012A
801 4,058 232,519
801 4,058 232,519
- - 195,000
24,000
- 808
- - 219,808
801 4,058 12,711
801 4,058 12,711
1,206 (153,291) 619,412
$ 2,007 $ (149,233) $ 632,123
Series
425,000
100,000
Total
2010D
Series
Series Series
Debt
& 2011A
2010B
2007B 2010A
Service
$ 225,000
$ 415,000
$ - $ -
$ 640,000
120,657
-
91,492 -
449,527
345,657
415,000
91,492 -
1,089,527
445,000
425,000
100,000
45,000
1,210,000
132,225
67,923
4,000
5,350
233,498
1,120
313
313
808
3,362
578,345
493,236
104,313
51,158
1,446,860
(232,688)
(78,236)
(12,821)
(51,158)
(357,333)
-
1,120
-
50,000
51,120
(232,688)
(77,116)
(12,821)
(1,158)
(306,213)
1,628,423
316,937
(175,375)
2,658
2,239,970
$ 1,395,735 $
239,821
$ (188,196) $
1,500
$ 1,933,757
97
CITY OF OTSEGO, MINNESOTA
STATEMENT OF CHANGES IN AGENCY FUND ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2016
Development Escrows Fund (701)
1/1/2016 Additions Deductions 12/31/2016
ASSETS
Cash and Cash Equivalents $ 990,002 $ 2,602,159 $ (816,628) $ 2,775,533
LIABILITIES
Accounts Payable $ 26,642 $ 16,851 $ (26,642) $ 16,851
Escrow Deposit 963,360 2,602,159 (806,837) 2,758,682
Total Liabilities $ 990,002 $ 2,619,010 $ (833,479) $ 2,775,533
Builders Escrow (702)
1/1/2016 Additions Deductions 12/31/2016
ASSETS
Cash and Cash Equivalents $ 177,500 $ 298,761 $ (344,000) $ 132,261
LIABILITIES
Accounts Payable $ 1,000 $ - $ (1,000) $ -
Escrow Deposit 176,500 298,761 (343,000) 132,261
Total Liabilities $ 177,500 $ 298,761 $ (344,000) $ 132,261
Totals
1/1/2016 Additions Deductions 12/31/2016
ASSETS
Cash and Cash Equivalents $ 1,167,502 $ 2,900,920 $ (1,160,628) $ 2,907,794
LIABILITIES
Accounts Payable $ 27,642 $ 16,851 $ (27,642) $ 16,851
Escrow Deposit 1,139,860 2,900,920 (1,149,837) 2,890,943
Total Liabilities $ 1,167,502 $ 2,917,771 $ (1,177,479) $ 2,907,794
W•
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
This part of the City of Otsego's comprehensive annual financial report (CAFR) presents detailed
information as a context for understanding what the financial statements, note disclosures, and
required supplementary information say about the City's overall financial health. Page No.
Financial Trends 100
These tables contain trend information to help the readers of the CAFR understand the
City's financial performance by comparing the current year with a historical perspective.
Revenue Capacity 114
These tables contain information to help the readers of the CAFR assess the City's most
significant revenue source, which is property taxes.
Debt Capacity 120
These tables present information to help the readers of the CAFR assess the affordability
of the City's current levels of outstanding debt and the City's ability to issue debt in the
future.
Demographic and Economic Information 127
These tables offer demographic and economic indicators to help the readers of the CAFR
to understand the environment in which the City's financial activities take place.
Operating Information 129
These tables contain service and infrastructure data to assist the readers of the CAFR to
understand how the City's financial report relates to the services the City provides.
Sources: Unless otherwise noted, the information in these tables is derived from the CAFR for each respective year.
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental Activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total Governmental Activities Net Position
Business -type activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total Business -type Activities Net Position
Primary Government
Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary Government Net Position
Sources: The data for this table has been extracted from the respective years CAFR document.
IG
2007
2008
2009
2010
$
9,199,610
$
10,402,950
$
12,113,710
$
12,600,418
9,278,966
8,576,073
8,604,122
7,506,642
8,287,671
8,335,206
8,085,402
8,568,988
$
26,766,247
$
27,314,229
$
28,803,234
$
28,676,048
$
16,344,652
$
18,721,350
$
19,658,076
$
17,255,564
7,620,664
6,302,993
6,462,497
-
1,728,153
313,037
1,519,450
9,661,840
$
25,693,469
$
25,337,380
$
27,640,023
$
26,917,404
$
25,544,262
$
29,124,300
$
31,771,786
$
29,855,982
16,899,630
14,879,066
15,066,619
7,506,642
10,015,824
8,648,243
9,604,852
18,230,828
$
52,459,716
$
52,651,609
$
56,443,257
$
55,593,452
Sources: The data for this table has been extracted from the respective years CAFR document.
IG
Table 1
101
2011
2012
2013
2014
2015
2016
$
13,039,318
$
13,673,424
$
14,709,024
$
15,515,291
$
15,303,426
$
19,103,702
6,547,412
6,570,533
5,882,912
5,430,795
4,547,327
4,292,589
8,490,450
7,850,150
7,313,054
9,601,854
9,627,962
10,745,858
$
28,077,180
$
28,094,107
$
27,904,990
$
30,547,940
$
29,478,715
$
34,142,149
$
16,017,362
$
14,795,965
$
13,694,517
$
12,619,305
$
11,553,869
$
15,889,294
8,220,490
9,054,217
10,546,291
13,487,231
15,474,362
15,248,794
$
24,237,852
$
23,850,182
$
24,240,808
$
26,106,536
$
27,028,231
$
31,138,088
$
29,056,680
$
28,469,389
$
28,403,541
$
28,134,596
$
26,857,295
$
34,992,996
6,547,412
6,570,533
5,882,912
5,430,795
4,547,327
4,292,589
16,710,940
16,904,367
17,859,345
23,089,085
25,102,324
25,994,652
$
52,315,032
$
51,944,289
$
52,145,798
$
56,654,476
$
56,506,946
$
65,280,237
101
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES
Last Ten Fiscal Years
(accrual basis of accounting)
GOVERNMENTAL ACTIVITIES
Expenses
General Government
Public Safety
Public Works
Sanitation
Culture and Recreation
Economic Development
Interest on Long-term Debt
Total Expenses
Program Revenues
Charges for Services
General Government
Public Safety
Public Works
Culture and Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Program Revenues
Net (Expense) / Revenue
General Revenues and Transfers
Taxes
Property
Franchise Taxes
Unrestricted Grants and Contributions
Investment Earnings (net)
Gain on Disposal of Capital Assets
Transfers
Transfers - Capital Assets
2007
2008
2009
2010
$ 796,258
$ 892,100 $
916,692
$ 910,830
1,651,417
1,781,953
1,786,889
1,615,763
1,198,973
1,660,742
2,043,980
2,029,922
8,186
10,095
-
-
298,088
570,456
374,019
401,563
71,875
7,268
58,293
17,096
520,352
721,924
611,384
919,907
4,545,149
5,644,538
5,791,257
5,895,081
106,390
45,222
117,955
109,349
910,074
592,768
474,185
889,878
-
7,939
58,430
24,082
740
330
250
360
151,198
196,232
182,205
191,850
6,739,484
1,714,984
2,843,309
563,690
7,907,886
2,557,475
3,676,334
1,779,209
3,362,737
(3,087,063)
(2,114,923)
(4,115,872)
2,781,744
3,270,875
3,505,575
69,473
82,420
87,807
241,467
106,320
141,892
561,230
430,239
293,497
4,000
-
-
(61,921)
(5,696)
-
(2,576,514)
(249,113)
(424,843)
3,587,177
97,228
29,797
227,484
37,000
10,000
Total General Revenues and Transfers 1,019,479 3,635,045 3,603,928 3,988,686
Change in Net Position $ 4,382,216 $ 547,982 $ 1,489,005 $ (127,186)
102
Table 2
Page 1 of 3
2011
2012
2013
2014
2015
2016
100,176
106,547
83,681
120,964
128,722
131,229
$ 956,651
$ 1,002,690
$ 906,102
$ 1,230,335
$ 1,174,510 $
1,376,793
1,647,285
1,445,397
1,447,887
1,499,538
1,670,627
1,846,459
2,114,975
2,486,553
2,760,130
2,383,890
6,521,708
3,389,909
569,431
575,592
573,581
792,525
792,936
847,553
12,353
103,884
75,303
45,024
145,771
302,296
661,447
631,129
543,821
347,503
231,242
223,938
5,962,142
6,245,245
6,306,824
6,298,815
10,536,794
7,986,948
109,686
54,674
36,735
119,757
36,235
81,876
819,537
588,894
784,038
1,159,073
1,191,134
1,677,788
111,873
50,906
106,913
724,009
247,260
656,570
3,101
8,840
28,600
43,606
52,075
59,236
197,325
203,645
220,790
233,606
244,497
248,910
233,832
620,574
485,533
1,619,209
3,154,662
4,437,611
1,475,354
1,527,533
1,662,609
3,899,260
4,925,863
7,161,991
(4,486,788)
(4,717,712)
(4,644,215)
(2,399,555)
(5,610,931)
(824,957)
3,719,778
4,271,751
4,333,972
4,476,810
4,602,153
4,963,787
100,176
106,547
83,681
120,964
128,722
131,229
26,051
54,601
10,954
132,104
242,970
255,951
290,962
212,731
(17,852)
157,640
55,909
82,385
16,500
40,009
44,343
32,355
35,600
31,160
44,000
49,000
-
122,632
284,586
186,755
-
-
-
-
-
(162,876)
4,197,467
4,734,639
4,455,098
5,042,505
5,349,940
5,488,391
$ (289,321) $
16,927
$ (189,117) $
2,642,950
$ (260,991) $
4,663,434
103
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last Ten Fiscal Years
(accrual basis of accounting)
BUSINESS -TYPE ACTIVITIES
Expenses
Water Utility
Sanitary Sewer Utility
Storm Water Utility
Total Expenses
Program Revenues
Charges for Services
Water Utility
Sanitary Sewer Utility
Storm Water Utility
Operating Grants and Contributions
Capital Grants and Contributions
Total Program Revenues
Net (Expense) / Revenue
General Revenues and Transfers
Property Taxes
Unrestricted Grants and Contributions
Investment Earnings (net)
Gain on Disposal of Capital Assets
Transfers
Transfers - Capital Assets
2007 2008
$ 878,915 $ 962,806
1,896,741 2,101,478
2009
2010
$ 968,217 $ 1,314,133
2,395,561 2,307,213
41,196 68,903
2,775,656 3,064,284 3,404,974 3,690,249
798,009
745,635
739,062
745,395
649,847
786,885
873,480
989,847
-
-
33,861
72,081
604,355
-
-
-
950,478
605,104
3,465,839
990,041
3,002,689
2,137,624
5,112,242
2,797,364
227,033 (926,660) 1,707,268 (892,885)
562,421
315,762 170,532
61,921
5,696 -
2,576,514
249,113 424,843
180,266
(10,000)
Total General Revenues and Transfers 3,200,856 570,571 595,375 170,266
Change in Net Position $ 3,427,889 $ (356,089) $ 2,302,643 $ (722,619)
104
2011 2012 2013 2014 2015
Table 2
Page 2 of 3
2016
$ 1,530,108 $
1,301,990
$ 1,241,343
$ 1,187,553
$ 1,246,064
$ 1,276,338
2,778,657
2,326,550
2,123,381
2,052,493
2,207,811
2,480,519
61,024
69,834
72,944
57,977
95,533
42,342
4,369,789
3,698,374
3,437,668
3,298,023
3,549,408
3,799,199
736,448
1,049,531
1,259,942
1,167,066
1,261,303
1,334,442
1,067,088
1,055,557
1,186,523
1,325,181
1,479,703
1,601,172
98,873
69,608
41,831
45,570
76,211
75,932
333,151
1,032,687
1,267,189
2,560,270
2,020,299
4,766,947
2,235,560
3,207,383
3,755,485
5,098,087
4,837,516
7,778,493
(2,134,229)
(490,991)
317,817
1,800,064
1,288,108
3,979,294
-
-
57,739
24,824
25,000
25,000
235,166
-
-
-
-
-
-
152,321
(34,717)
168,320
85,259
129,442
-
-
18,733
28,440
-
-
(44,000)
(49,000)
-
(122,632)
(284,586)
(186,755)
-
-
-
-
-
162,876
191,166
103,321
41,755
98,952
(174,327)
130,563
$ (1,943,063)
$ (387,670) $
359,572 $
1,899,016 $
1,113,781 $
4,109,857
105
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last Ten Fiscal Years
(accrual basis of accounting)
TOTAL PRIMARY GOVERNMENT
Expenses
Governmental Activities
Business -type Activities
Total Expenses
Program Revenues
Governmental Activities
Business -type Activities
Total Program Revenues
Net (Expense) / Revenue
General Revenues and Transfers
Governmental Activities
Business -type Activities
Total General Revenues and Transfers
Change in Net Position
2007
2008
2009
2010
$ 4,545,149
$ 5,644,538 $
5,791,257
$ 5,895,081
2,775,656
3,064,284
3,404,974
3,690,249
7,320,805
8,708,822
9,196,231
9,585,330
7,907,886
2,557,475
3,676,334
1,779,209
3,002,689
2,137,624
5,112,242
2,797,364
10,910,575
4,695,099
8,788,576
4,576,573
3,589,770
(4,013,723)
(407,655)
(5,008,757)
1,019,479
3,635,045
3,603,928
3,988,686
3,200,856
570,571
595,375
170,266
4,220,335
4,205,616
4,199,303
4,158,952
$ 7,810,105
$ 191,893 $
3,791,648
$ (849,805)
Sources: The data for this table has been extracted from the respective years CAFR document.
106
Table 2
Page 3 of 3
2011
2012
2013
2014
2015
2016
$ 5,962,142
$ 6,245,245 $
6,306,824 $
6,298,815
$ 10,536,794 $
7,986,948
4,369,789
3,698,374
3,437,668
3,298,023
3,549,408
3,799,199
10,331,931
9,943,619
9,744,492
9,596,838
14,086,202
11,786,147
1,475,354
1,527,533
1,662,609
3,899,260
4,925,863
7,161,991
2,235,560
3,207,383
3,755,485
5,098,087
4,837,516
7,778,493
3,710,914
4,734,916
5,418,094
8,997,347
9,763,379
14,940,484
(6,621,017)
(5,208,703)
(4,326,398)
(599,491)
(4,322,823)
3,154,337
4,197,467
4,734,639
4,455,098
5,042,505
5,349,940
5,488,391
191,166
103,321
41,755
98,952
(174,327)
130,563
4,388,633
4,837,960
4,496,853
5,141,457
5,175,613
5,618,954
$ (2,232,384)
$ (370,743) $
170,455 $
4,541,966
$ 852,790 $
8,773,291
107
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE
Last Ten Fiscal Years
(accrual basis of accounting)
Table 3
Sources: The data for this table has been extracted from the respective years CAFR document.
Property
Franchise
Taxes
Taxes
Total
2007
$ 2,781,744 $
69,473 $
2,851,217
2008
3,270,875
82,420
3,353,295
2009
3,505,575
87,807
3,593,382
2010
3,587,177
97,228
3,684,405
2011
3,719,778
100,176
3,819,954
2012
4,271,751
106,547
4,378,298
2013
4,333,972
83,681
4,417,653
2014
4,476,810
120,964
4,597,774
2015
4,602,153
128,722
4,730,875
2016
4,963,787
131,229
5,095,016
Sources: The data for this table has been extracted from the respective years CAFR document.
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
109
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Nonspendable
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Reserved
Unreserved, Reported in:
Special Revenue Funds
Capital Project Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total All Other Governmental Funds
Sources: The data for this table has been extracted from the respective years CAFR document.
Note: During 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions.
110
2007
2008
2009
2010
$
4,894
$
6,069
$
-
$
-
1,095,854
1,538,650
1,685,623
1,713,440
$
1,100,748
$
1,544,719
$
1,685,623
$
1,713,440
$
9,492,741
$
8,120,203
$
8,343,014
$
1,197,967
3,207,643
3,356,320
2,684,192
2,811,289
4,637,052
2,228,379
1,960,421
2,157,424
$
17,337,436
$
13,704,902
$
12,987,627
$
6,166,680
Sources: The data for this table has been extracted from the respective years CAFR document.
Note: During 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions.
110
Table 4
111
2011
2012
2013
2014
2015
2016
-
11,254
11,254
80,423
105,547
110,973
81,168
87,971
103,418
101,833
128,646
192,408
1,622,430
1,665,366
1,797,403
3,211,382
2,656,330
3,342,821
$
1,703,598
$
1,764,591
$
1,912,075
$
3,393,638
$
2,890,523
$
3,646,202
-
4,601
351
-
2,675
2,000
5,985,647
7,898,825
8,805,554
2,576,729
2,278,379
1,931,757
39,142
52,360
595,191
387,033
406,683
419,829
6,517,609
5,605,265
4,267,012
5,218,020
6,825,237
7,221,257
(700,854)
(341,194)
(9,555)
(10,584)
(26,070)
(281,273)
$
11,841,544
$
13,219,857
$
13,658,553
$
8,171,198
$
9,486,904
$
9,293,570
111
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
Sources: The data for this table has been extracted from the respective years CAFR document.
112
2007
2008
2009
2010
Revenues
Property Taxes
$ 2,707,808
$ 3,368,516
$ 3,560,656
$ 3,671,320
Franchise Taxes
-
-
-
-
Licenses and Permits
914,988
604,818
433,080
339,568
Intergovernmental
863,219
915,934
336,937
191,784
Charges for Services
1,939,484
533,967
561,860
126,453
Special Assessments
1,559,651
1,567,265
1,309,711
1,511,510
Fines and Forfeitures
-
-
-
-
Investment Earnings (net)
1,091,564
727,395
447,109
227,484
Miscellaneous
1,148,659
119,515
152,416
33,153
Total Revenues
10,225,373
7,837,410
6,801,769
6,101,272
Expenditures
General Government
735,144
834,755
872,067
802,632
Public Safety
1,610,773
1,744,043
1,759,415
1,604,062
Public Works
943,083
860,594
1,255,099
962,329
Sanitation
8,186
10,095
-
-
Culture and Recreation
167,305
379,246
240,047
201,080
Economic Development
11,875
7,268
58,293
17,096
Capital Outlay
7,450,938
3,357,334
561,037
1,533,354
Debt Service
Principal
2,315,067
2,380,000
2,780,000
1,345,000
Interest
1,798,908
1,731,089
1,872,249
989,718
Bond Issuance & Fiscal Agent Fee's
77,683
-
233,028
125,275
Total Expenditures
15,118,962
11,304,424
9,631,235
7,580,546
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(4,893,589)
(3,467,014)
(2,829,466)
(1,479,274)
Other Financing Sources (Uses)
Transfers In
1,754,282
1,723,793
1,553,570
931,682
Issuance of Debt
4,275,000
-
6,360,000
5,310,000
Premium on Issuance of Debt
-
-
-
-
Sales of Capital Assets
4,000
-
-
56,000
Refunded Bonds Redeemed
-
-
(4,195,000)
(4,325,000)
Insurance Recovery
-
-
-
-
Transfers Out
(1,754,282)
(1,445,342)
(1,465,475)
(917,937)
Total Other Financing Sources (Uses)
4,279,000
278,451
2,253,095
1,054,745
Net Change in Fund Balances
$ (614,589)
$ (3,188,563)
$ (576,371)
$ (424,529)
Debt Service as a Percentage of
Noncapital Expenditures
37.70%
41.80%
50.98%
36.16%
Sources: The data for this table has been extracted from the respective years CAFR document.
112
Table 5
2011
2012
2013
2014
2015
2016
$ 3,886,919
$ 4,344,415 $
4,564,068
$ 4,524,092 $
4,651,453
$ 4,960,518
-
-
-
120,964
128,722
131,229
303,059
553,577
819,493
1,238,823
1,179,136
1,661,565
375,703
621,447
241,996
1,034,552
3,570,630
2,111,727
200,256
86,655
170,194
1,142,453
555,660
1,274,578
2,055,623
875,822
1,987,647
905,441
560,748
575,155
1,000
2,000
-
4,000
11,998
16,223
290,962
209,984
(17,852)
157,640
55,909
82,385
25,302
56,625
78,457
50,286
105,573
119,732
7,138,824
6,750,525
7,844,003
9,178,251
10,819,829
10,933,112
887,847
918,055
923,255
1,169,697
1,141,113
1,233,680
1,586,504
1,440,908
1,447,182
1,495,008
1,664,031
1,807,985
974,557
1,009,827
1,121,981
1,023,693
1,044,024
1,019,946
246,075
277,605
313,023
464,840
466,205
534,122
12,353
103,884
75,303
45,024
145,771
196,534
1,178,526
1,707,346
1,984,531
1,688,847
4,477,153
4,349,555
745,000
810,000
840,000
6,965,000
1,130,000
1,210,000
489,184
554,245
574,715
454,566
256,148
233,498
86,285
42,900
-
-
2,979
3,362
6,206,331
6,864,770
7,279,990
13,306,675
10,327,424
10,588,682
932,493
(114,245)
564,013
(4,128,424)
492,405
344,430
2,069,009
997,325
-
612,433
1,574,500
648,087
4,640,000
1,400,000
-
-
-
-
48,529
64,542
-
-
-
-
-
40,009
-
-
35,600
31,160
-
-
22,167
(2,025,009)
(948,325)
-
(489,801)
(1,289,914)
(461,332)
4,732,529
1,553,551
22,167
122,632
320,186
217,915
$ 5,665,022
$ 1,439,306 $
586,180
$ (4,005,792) $
812,591
$ 562,345
22.68%
23.13%
23.32%
60.23%
14.22%
18.40%
113
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
ESTIMATED ACTUAL VALUE, TAXABLE MARKET VALUE AND TAX CAPACITY OF TAXABLE PROPERTY
Last Ten Fiscal Years
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
114
2007
2008
2009
2010
Estimated Actual Value
$
1,209,694,535
$
1,333,105,057
$
1,359,891,000
$
1,297,319,800
Taxable Market Value
Real Estate
$
1,031,745,900
$
1,192,244,800
$
1,254,432,100
$
1,163,465,900
Personal Property
9,990,000
11,325,900
12,488,100
13,099,300
Total Taxable Market Value
$
1,041,735,900
$
1,203,570,700
$
1,266,920,200
$
1,176,565,200
Taxable Market Value as a Percentage
of Estimated Actual Value
86.12%
90.28%
93.16%
90.69%
Tax Capacity
Real Estate
$
10,928,056
$
12,698,297
$
13,545,272
$
12,750,856
Personal Property
199,369
226,018
249,252
261,328
Net Tax Capacity for Direct Rate
$
11,127,425
$
12,924,315
$
13,794,524
$
13,012,184
Net Tax Capacity as a Percentage
of Estimated Actual Value
0.92%
0.97%
1.01%
1.00%
Property Tax Levies
General Revenues
$
2,482,980
$
2,967,000
$
3,402,090
$
3,252,000
Debt Service
485,020
458,000
318,600
566,000
Total Property Taxes Levied
$
2,968,000
$
3,425,000
$
3,720,690
$
3,818,000
Tax Rates
General Revenues
22.314
22.957
24.663
24.992
Debt Service
4.359
3.544
2.310
4.350
Total Direct Tax Rate
26.673
26.500
26.972
29.342
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
114
Table 6
2011 2012 2013 2014 2015 2016
$ 1,122,091,900
$
1,070,068,000
$
989,365,300
$
1,051,543,200
$
1,177,857,500
$
1,340,579,000
$ 1,045,413,800
$
913,874,900
$
839,428,800
$
908,532,000
$
1,039,579,100
$
1,195,720,700
14,203,900
14,003,900
14,305, 700
14,513,300
14,952,700
16,476,000
$ 1,059,617,700
$
927,878,800
$
853,734,500
$
923,045,300
$
1,054,531,800
$
1,212,196,700
94.43%
86.71%
86.29%
87.78%
89.53%
90.42%
$ 11,376,627
$
9,999,046
$
9,184,748
$
9,805,499
$
11,060,135
$
12,909,476
283,499
279,502
285,540
290,266
298,480
328,948
$ 11,660,126
$
10,278,548
$
9,470,288
$
10,095,765
$
11,358,615
$
13,238,424
1.04%
0.96%
0.96%
0.96%
0.96%
0.99%
$ 3,500,000
$
3,836,000
$
3,952,910
$
4,024,715
$
4,070,000
$
4,380,206
466,000
425,000
425,000
475,285
610,000
640,000
$ 3,966,000
$
4,261,000
$
4,377,910
$
4,500,000
$
4,680,000
$
5,020,206
30.017
37.320
41.740
39.865
35.832
33.087
3.997
4.135
4.488
4.708
5.370
4.834
34.013
41.455
46.228
44.573
41.202
37.921
115
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
TAX CAPACITY OF REAL ESTATE & PERSONAL PROPERTY
Last Ten Fiscal Years
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Residential
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
116
Table 7
Other Total
70,937 $ 11,127,425
0.64% 100.00%
74,141
Non
Commercial
100.00%
Personal
Homestead
Homestead
& Industrial
Agricultural
Property
$ 7,618,707
$ 1,361,479
$ 1,151,084
$ 725,849
$ 199,369 $
68.47%
12.24%
10.34%
6.52%
1.79%
8,390,152
1,998,030
1,435,171
800,803
226,018
64.92%
15.46%
11.10%
6.20%
1.75%
8,666,112
2,120,456
1,878,314
805,387
249,252
62.82%
15.37%
13.62%
5.84%
1.81%
8,126,189
1,661,573
2,164,323
719,579
261,328
62.45%
12.77%
16.63%
5.53%
2.01%
7,547,244
1,251,967
1,893,120
606,587
283,499
64.73%
10.74%
16.24%
5.20%
2.43%
6,460,276
1,097,107
1,821,302
543,596
279,502
62.85%
10.67%
17.72%
5.29%
2.72%
5,906,265
903,006
1,788,872
533,264
285,540
62.37%
9.54%
18.89%
5.63%
3.02%
6,607,296
918,439
1,664,605
536,842
290,266
65.45%
9.10%
16.49%
5.32%
2.88%
7,732,867
1,057,409
1,633,988
582,530
298,480
68.08%
9.31%
14.39%
5.13%
2.63%
8,878,089
1,183,843
2,166,341
627,666
328,948
67.06%
8.94%
16.36%
4.74%
2.48%
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
116
Table 7
Other Total
70,937 $ 11,127,425
0.64% 100.00%
74,141
12,924,315
0.57%
100.00%
75,003
13,794,524
0.54%
100.00%
79,192
13,012,184
0.61%
100.00%
77,709
11,660,126
0.67%
100.00%
76,765
10,278,548
0.75%
100.00%
53,341
9,470,288
0.56%
100.00%
78,317
10,095,765
0.78%
100.00%
53,341
11,358,615
0.47%
100.00%
53,537
13,238,424
0.40%
100.00%
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
Table 8
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
117
Overlapping
Rates
Total
Direct & Overlapping
School
School
School
School
School
School
City
District 728
District 882
District 885
County
District 728
District 882
District 885
2007
26.673
33.208
23.146
45.259
30.714
90.595
80.533
102.646
2008
26.500
32.344
25.254
46.192
31.648
90.492
83.402
104.340
2009
26.972
36.136
26.083
46.714
32.567
95.675
85.622
106.253
2010
29.342
39.967
24.948
52.062
35.819
105.128
90.109
117.223
2011
34.013
43.489
27.029
51.369
39.306
116.808
100.348
124.688
2012
41.455
45.548
28.262
52.646
43.452
130.455
113.169
137.553
2013
46.228
50.058
26.229
57.213
44.288
140.574
116.745
147.729
2014
44.573
51.286
28.269
51.570
43.450
139.309
116.292
139.593
2015
41.202
42.483
22.882
51.082
40.593
124.278
104.677
132.877
2016
37.921
39.266
20.857
49.102
39.970
117.157
98.748
126.993
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
117
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2016
2007
Table 9
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
118
Percentage of
Percentage of
Net Tax
Total Tax
Net Tax
Total Tax
Taxpayer
Classification
Capacity
Rank
Capacity Value
Capacity
Rank
Capacity Value
Duke Realty
Industrial
$ 764,963
1
5.78%
Target Corporation
Commercial
207,250
2
1.57%
Minnegasco, Inc.
Utility
184,220
3
1.39%
$ 114,362
3
1.03%
Elk Inn Partners, LP
Commercial
109,250
4
0.83%
Wright -Hennepin Electric Co -Op
Utility
91,295
5
0.69%
60,017
8
0.54%
Apex Business Center, LLC
Industrial
73,924
6
0.56%
74,578
4
0.67%
21st Century Bank
Commercial
49,602
7
0.37%
GCI Capital, Inc.
Commercial
46,676
8
0.35%
Minnwest Bank Central
Commercial
45,250
9
0.34%
Darkenwald's Riverbend Co. LLC
Residential
40,734
10
0.31%
Geneva Exchange Fund XXII LLC
Commercial
172,930
1
1.55%
Land Funding I LLC
Commercial
148,418
2
1.33%
Martin Farms Development, LLC
Residential
90,658
5
0.81%
Tier One, LLC
Commercial
63,286
6
0.57%
OHW, LLC
Residential
85,789
7
0.77%
5 Heirs Marketplace West, LLC
Commercial
57,250
9
0.51%
E & G Development LLC
Agricultural
63,360
10
0.57%
Totals
$ 1,613,164
12.19%
$ 930,648
8.35%
Sources: The data for this table has been provided by the Wright County Auditor / Treasurer's Office.
118
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Table 10
Total Collections to Date
Amount
Percentage
to Date
Collected within the
100.00%
3,425,000
Certified
Fiscal Year of the Levy
Collections in
3,818,000
Property
3,960,244
Percentage
Subsequent
99.95%
Tax Levy
Amount
of Levy
Years
2007
$ 2,968,000
$ 2,750,126
92.66%
$ 217,874
2008
3,425,000
3,241,928
94.65%
183,072
2009
3,720,690
3,498,865
94.04%
221,825
2010
3,818,000
3,610,870
94.57%
207,130
2011
3,966,000
3,820,747
96.34%
139,497
2012
4,261,000
4,111,857
96.50%
147,109
2013
4,377,910
4,306,802
98.38%
68,586
2014
4,500,000
4,444,153
98.76%
51,816
2015
4,680,000
4,641,720
99.18%
31,888
2016
5,020,206
4,979,508
99.19%
-
Table 10
Total Collections to Date
Amount
Percentage
to Date
$ 2,968,000
100.00%
3,425,000
100.00%
3,720,690
100.00%
3,818,000
100.00%
3,960,244
99.85%
4,258,966
99.95%
4,375,388
99.94%
4,495,969
99.91%
4,673,608
99.86%
4,979,508
99.19%
Sources: The data for this table has been provided by Wright County and from City financial maintenance documents.
Note: The components of the Certified Property Tax Levy can be viewed in table 6 of the statistical section.
119
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
General
Obligation Equipment
Bonds Certificates
2007
$ 13,785,000 $
2008
12,655,000
2009
11,265,000
2010
13,750,000
2011
17,728,529
2012
18,413,438
2013
17,601,634
2014
10,664,830
2015
9,553,029
2016
8,380,857
Business -Type
Activities
General
Lease Obligation Total
Revenue Revenue Bonds Debt
- $ 3,525,000
$ 27,920,000
$ 45,230,000
- 3,430,000
26,765,000
42,850,000
- 3,230,000
27,740,000
42,235,000
385,000 -
28,922,111
43,057,111
350,000 -
28,843,229
46,921,758
310,000 -
28,764,347
47,487,785
265,000 -
28,685,465
46,552,099
220,000 -
28,606,583
39,491,413
175,000 -
28,527,701
38,255,730
130,000 -
26,448,820
34,959,677
Percentage
of Personal
Income
10.84%
9.32%
9.26%
9.24%
9.17%
8.82%
8.26%
6.33%
5.61%
4.89%
Sources: The data for this table has been provided from City financial maintenance documents.
Note: More detailed information for Population and Personal Income can be viewed in table 16 of the statistical section.
120
Table 11
Per
Capita
$ 3,619
3,217
3,114
3,173
3,396
3,384
3,220
2,638
2,473
2,158
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
General
Obligation Equipment
Bonds Certificates
2007
$ 13,785,000 $
2008
12,655,000
2009
11,265,000
2010
13,750,000
2011
17,728,529
2012
18,413,438
2013
17,601,634
2014
10,664,830
2015
9,553,029
2016
8,380,857
385,00
350,00
310,00
265,00
220,00
175,00
130,00
Total
Estimated
General
Less: Amounts
Net General
Bonded Debt
Restricted to
Obligation
Outstanding
Debt Service
Debt
- $ 13,785,000
$ 1,778,560
$ 12,006,440
- 12,655,000
1,864,069
10,790,931
- 11,265,000
1,092,787
10,172,213
0 14,135,000
6,962,030
7,172,970
0 18,078,529
6,547,412
11,531,117
0 18,723,438
6,570,533
12,152,905
0 17,866,634
5,882,912
11,983,722
0 10,884,830
5,430,795
5,454,035
0 9,728,029
4,506,243
5,221,786
0 8,510,857
4,292,589
4,218,268
Table 12
Percentage of
Estimated
Actual Value
Per
of Property
Capita
0.99%
$ 961
0.81%
810
0.75%
750
0.55%
529
1.03%
835
1.14%
866
1.21%
829
0.52%
364
0.44%
337
0.31%
260
Sources: The data for this table has been provided from City financial maintenance documents.
Note: More detailed information for Population can be viewed in table 16 of the statistical section.
Note: More detailed information for Estimated Property Values can be viewed in table 6 of the statistical section.
121
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING
GOVERNMENTAL ACTIVITIES DEBT
DECEMBER 31, 2016
Governmental Unit
Overlapping Debt:
School Districts:
No. 728 - Elk River
No. 882 - Monticello
No. 885 - St. Michael -Albertville
Wright County
Total Overlapping Debt
City of Otsego Direct Debt
Total Direct and Overlapping Debt
Estimated
Debt Percentage
Outstanding Applicable
$ 274,800,000
45,215,000
191,010,000
59,935,000
$ 570,960,000
Table 13
Estimated Share
of Overlapping
Debt
18.35%
$ 50,425,800
3.44%
1,555,396
4.14%
7,907,814
10.14%
6,077,409
Sources: The majority of the data for this table has been provided by Wright County Auditor / Treasurer's Office.
Sources: The remaining data for this table was provided by School District No. 728.
Note: More detailed information for the City's outstanding debt can be viewed in table 11 of the statistical section.
65,966,419
8,510,857
$ 74,477,276
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of
the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident, and therefore responsible for repaying the debt, of each overlapping government.
Note: The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated
by determining the portion of each entity's tax capacity that is within the City's boundaries, and dividing it by the entity's
total tax capacity.
122
0
CITY OF
S+ 0
MINNESOTA.
This page has been left blank intentionally.
123
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Taxable Market Value
Debt Limit Percentage
Debt Limit
Total Net Debt Applicable to Limit
Legal Debt Margin
Total Net Debt Applicable to the Limit
as a Percentage of Debt Limit
2007
$ 1,041,735,900
2.00%
2008
$ 1,203,570,700
3.00%
2009
$ 1,266,920,200
3.00%
2010
$ 1,176,565,200
3.00%
20,834,718
36,107,121
38,007,606
35,296,956
12,006,440
10,790,931
10,172,213
7,172,970
$ 8,828,278 $
25,316,190 $
27,835,393 $
28,123,986
57.63%
29.89%
26.76%
20.32%
Sources: The data for this table has been provided by Wright County and from City financial maintenance documents.
124
Table 14
2011
2012
2013
2014
2015
2016
$ 1,059,617,700 $
927,878,800 $
853,734,500 $
923,045,300
$ 1,054,531,800 $
1,212,196,700
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
31,788,531
27,836,364
25,612,035
27,691,359
31,635,954
36,365,901
11,531,117
12,152,905
11,983,722
5,454,035
5,221,786
4,218,268
$ 20,257,414 $
15,683,459 $
13,628,313 $
22,237,324
$ 26,414,168 $
32,147,633
36.27%
43.66%
46.79%
19.70%
16.51%
11.60%
125
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED -REVENUE COVERAGE
Last Ten Fiscal Years
Table 15
Sources: The data for this table has been provided from City financial maintenance documents.
126
General Obligation Revenue Bonds
Water and
Water and
Sanitary Sewer
Sanitary Sewer
Less:
Net
Utility
Connection
Operating
Available
Debt Service
Charges
Charges
Expenses
Revenue
Principal
Interest
Coverage
2007
$ 1,861,821
$ 1,662,772
$ 910,831
$ 2,613,762
$ 1,020,000
$ 1,203,646
117.54%
2008
1,819,479
501,798
1,015,506
1,305,771
1,155,000
1,083,466
58.33%
2009
1,783,074
498,326
1,039,988
1,241,412
1,190,000
1,264,930
50.57%
2010
1,915,508
990,041
1,109,346
1,796,203
-
1,214,508
147.90%
2011
2,038,433
333,151
1,228,236
1,143,348
-
1,343,403
85.11%
2012
2,256,616
1,032,687
1,148,605
2,140,698
-
1,006,961
212.59%
2013
2,429,661
1,233,224
1,136,790
2,526,095
-
1,007,100
250.83%
2014
2,687,572
2,435,460
1,016,382
4,106,650
-
1,007,585
407.57%
2015
2,641,566
2,020,299
2,524,073
2,137,792
-
1,007,762
212.13%
2016
2,857,174
3,662,097
2,831,346
3,687,925
2,000,000
1,007,725
122.62%
Capital Leases
Property
Debt Service
Taxes
Principal
Interest
Coverage
2007
$ 61,924
$ 59,567
$ 2,357
100.00%
2008
-
-
-
n/a
2009
n/a
2010
n/a
2011
n/a
2012
-
-
n/a
2013
-
-
-
n/a
2014
-
-
-
n/a
2015
-
-
-
n/a
2016
-
-
-
n/a
Lease Revenue Bonds
Property
Debt Service
Taxes
Principal
Interest
Coverage
2007
$ 177,541
$ 70,000
$ 107,541
100.00%
2008
235,763
95,000
140,763
100.00%
2009
337,200
200,000
137,200
100.00%
2010
-
-
-
n/a
2011
-
-
-
n/a
2012
-
-
-
n/a
2013
-
-
-
n/a
2014
-
-
-
n/a
2015
-
-
-
n/a
2016
-
-
-
n/a
Sources: The data for this table has been provided from City financial maintenance documents.
126
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Population
No. of
Households
12,499
4,262
13,319
4,553
13,562
4,660
13,571
4,736
13,816
4,826
14,034
4,894
14,457
5,035
14,968
5,218
15,472
5,394
16,198
5,613
Table 16
Sources: Population & Households - Minnesota State Demographer [2016 Estimated by City]
Personal Income - Calculated by the City
Per Capita Personal Income - US Department of Commerce; Bureau of Economic Analysis
Unemployment Rate - Minnesota Department of Employment and Economic Development
Median Age - US Department of Commerce, Bureau of the Census
School Enrollment - Minnesota Department of Education
Note: Median age was added in 2015. Information prior to 2009 was not available. This will be updated on a go -forward basis.
Note: Some data was not yet available for 2016. In those instances, 2015 data was shown for the current year.
127
School Enrollments
Per Capita
No. 885
Personal
Personal
Unemployment
Median
No. 728
No. 882
St. Michael
Income
Income
Rate
Age
Elk River
Monticello
Albertville
$ 417,329,111
33,389
5.1%
12,438
4,012
4,688
459,612,052
34,508
6.1%
12,544
4,036
4,873
455,886,630
33,615
8.9%
33.8
12,702
4,057
5,094
465,770,291
34,321
8.0%
32.2
12,932
4,073
5,326
511,523,584
37,024
6.8%
32.4
12,801
4,110
5,497
538,231,968
38,352
5.8%
33.4
12,753
4,137
5,645
563,823,000
39,000
5.0%
33.4
13,123
4,137
5,747
623,821,336
41,677
4.2%
33.8
13,076
4,193
5,904
682,361,616
44,103
3.7%
34.1
13,136
4,096
6,096
714,385,910
44,103
3.8%
34.1
13,219
4,094
6,286
Sources: Population & Households - Minnesota State Demographer [2016 Estimated by City]
Personal Income - Calculated by the City
Per Capita Personal Income - US Department of Commerce; Bureau of Economic Analysis
Unemployment Rate - Minnesota Department of Employment and Economic Development
Median Age - US Department of Commerce, Bureau of the Census
School Enrollment - Minnesota Department of Education
Note: Median age was added in 2015. Information prior to 2009 was not available. This will be updated on a go -forward basis.
Note: Some data was not yet available for 2016. In those instances, 2015 data was shown for the current year.
127
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL EMPLOYMENT SECTORS
Current Year and Nine Years Ago
2016
2007
Table 17
Sources: The data for this table has been provided from the Minnesota Department of Employment and Economic Development
Note: Due to data privacy within the State, data for principal employers of the City is not available. Given this limitation, the
City determined it was appropriate to provide data regarding employment industry data. The City felt that this data would still
provide the user information to understand the degree to which the City's economy is or is not dependent on a certain
employment sector.
128
Percentage of
Percentage of
Total City
Total City
Employment Industry
Employees
Rank
Employment
Employees
Rank
Employment
Education & Health Services
1,574
1
44.31%
-
0.00%
Trade, Transportation & Utilities
675
2
19.00%
116
4
9.59%
Leisure & Hospitality
488
3
13.74%
431
1
35.65%
Construction
326
4
9.18%
127
3
10.50%
Professional & Business Services
242
5
6.81%
157
2
12.99%
Other Services
71
6
2.00%
56
6
4.63%
Public Administration
42
7
1.18%
21
7
1.74%
Financial Activities
33
8
0.93%
95
5
7.86%
Totals
3,451
97.16%
1,003
82.96%
Sources: The data for this table has been provided from the Minnesota Department of Employment and Economic Development
Note: Due to data privacy within the State, data for principal employers of the City is not available. Given this limitation, the
City determined it was appropriate to provide data regarding employment industry data. The City felt that this data would still
provide the user information to understand the degree to which the City's economy is or is not dependent on a certain
employment sector.
128
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION
Last Ten Fiscal Years
Table 18
Sources: The data for this table has been provided from City financial maintenance documents.
Note: Police and Fire services are contracted services with Wright County and neighboring Cities respectively, therefore no City employees
Note: Public Utilities staffing were contracted with a service provider through 2012. In 2013, the City hired a staff and assumed operations.
129
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
General Government
Administration
5.0
4.0
3.0
3.0
3.0
3.0
3.0
3.0
4.0
3.5
Finance
3.5
3.7
3.8
3.9
3.9
3.9
3.7
3.9
3.0
3.0
Total General Government
8.5
7.7
6.8
6.9
6.9
6.9
6.7
6.9
7.0
6.5
Public Safety
Police
-
-
-
-
-
-
-
-
-
-
Fire
-
-
-
-
-
-
-
-
-
-
Building Inspections
5.5
4.0
2.6
1.6
1.0
1.0
1.0
1.0
1.0
1.5
Total Public Safety
5.5
4.0
2.6
1.6
1.0
1.0
1.0
1.0
1.0
1.5
Public Works
Street Maintenance
4.5
5.9
5.9
6.9
6.9
5.9
5.8
5.8
6.9
6.9
Mechanic
-
-
-
-
1.0
1.0
1.0
1.0
1.0
Total Public Works
4.5
5.9
5.9
6.9
6.9
6.9
6.8
6.8
7.9
7.9
Culture and Recreation
Parks Maintenance
1.0
1.0
1.0
1.0
1.0
1.4
1.4
1.4
3.5
3.5
Recreation
-
-
0.6
1.1
1.1
1.4
1.4
Total Culture and Recreation
1.0
1.0
1.0
1.0
1.0
2.0
2.5
2.5
4.9
4.9
Public Utilities
Water Utility
-
-
-
-
-
-
2.0
2.0
1.3
1.3
Sanitary Sewer Utility
-
-
-
-
2.0
2.0
3.7
3.7
Total Public Utilities
-
-
-
-
-
-
4.0
4.0
5.0
5.0
Total
19.5
18.6
16.3
16.4
15.8
16.8
21.0
21.2
25.7
25.7
Sources: The data for this table has been provided from City financial maintenance documents.
Note: Police and Fire services are contracted services with Wright County and neighboring Cities respectively, therefore no City employees
Note: Public Utilities staffing were contracted with a service provider through 2012. In 2013, the City hired a staff and assumed operations.
129
CITY OF OTSEGO, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
OPERATING INDICATORS BY FUNCTION Table 19
Last Ten Fiscal Years
Function
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Administration
Rental Licenses Issued
101
89
199
180
246
292
337
372
372
387
Code Enforcement Citations
11
60
89
20
16
31
41
Registered Voters
7,168
7,329
9,324
Actual Votes Tallied
6,688
4,737
7,126
4,693
7,362
Police
Total Calls for Service
4,217
3,905
4,111
4,234
3,856
4,060
3,575
3,619
Fire
Calls - Albertville Department
82
76
93
Calls - Elk River Department
74
73
80
Calls - Rogers Department
18
15
Building Inspections
Number of Permits - All Types
740
2,480
839
617
570
645
699
692
893
968
New Homes Constructed
279
80
94
73
58
143
190
188
207
219
Public Works
Miles of Streets Constructed
2.65
-
0.25
-
-
0.45
1.33
2.30
1.66
2.59
Miles of Streets Reconstructed
0.35
Snow Plowing Events
15
26
55
40
46
37
22
16
16
Culture and Recreation
Parks Acres Maintained
142.0
158.7
158.7
161.5
167.8
167.8
184.3
184.3
184.3
190.3
Prairie Festival Attendance
4,900
5,100
6,200
5,000
Recreation Programs Offered
17
60
106
132
100
Recreation Programs Participants
550
9,875
14,958
12,662
12,662
Water Utility
Connections
2,029
2,131
2,222
2,321
2,379
2,517
2,678
2,829
3,023
3,155
Gallons Delivered
352,955,656
339,394,000 348,947,070
348,498,610
353,515,800
429,293,500
409,492,730
375,299,840
389,118,330
393,795,210
Sanitary Sewer Utility
Average Daily Gallons Treated
405,000
416,000
474,000
509,000
512,000
485,000
543,000
539,000
551,000
600,000
Sources: The data for this table has been
provided by each respective City department.
Note: The City made significant changes
to the indicators included
in this table for 2015.
Not all historical data was able
to be compiled, and
this table will be updated on a go -forward basis.
130
CITY OF OTSEGO, NUNNESOTA
STATISTICAL SECTION (UNAUDITED)
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
Function
2007
2008
2009
2010
2011
2012
2013
Public Works
8
8
8
19.68
19.96
21.13
10
Street Miles (MSA)
112.60
113.10
112.85
112.85
112.85
113.30
114.63
Heavy Duty Trucks
7
7
7
7
8
8
8
Light Duty Vehicles
9
9
10
10
10
11
15
Tractors & Grading Equipment
4
4
4
7
8
8
8
Culture and Recreation
74
77
722
794
846
1,603
1,659
Trail Miles
16.90
17.90
19.68
19.68
19.68
19.68
19.68
Number of Parks
6
7
7
7
8
8
10
Playgrounds
6
6
6
6
7
7
7
Park Shelters
7
7
7
7
9
9
9
Ball Fields
4
4
4
4
5
5
5
Soccer Fields
-
-
-
-
-
-
-
Basketball Courts
4
4
4
4
5
5
5
Tennis Courts
6
6
6
6
7
7
7
Outdoor Ice Rinks
-
-
-
-
-
-
1
Mowing Equipment
1
2
2
3
4
5
5
Water Utility
Water Towers
2
3
3
3
3
3
3
Wells
7
8
8
8
8
8
8
Miles of Water Main
63
Hydrants
717
Water Valves
1,555
Sanitary Sewer Utility
Treatment Facilities
2
2
2
2
2
2
2
Lift Stations
9
9
9
9
9
9
9
Miles of Sanitary Sewer Lines
68.5
Manholes
1,257
Miles of Sanitary Forcemain
20
Sources: The data for this table has been provided by each respective City department.
Note: The City made significant changes to the statistics included in this table for 2015. Not all historical data was able to be compiled, and this table will be updated on a go -forward basis
131
2014 2015
Table 20
2016
116.93
118.59
120.88
8
8
8
15
15
15
8
8
8
19.68
19.96
21.13
10
10
11
7
7
8
9
9
10
5
5
6
3
3
5
5
5
7
7
8
1
1
2
5
5
6
3
3
3
8
8
8
63
74
77
722
794
846
1,603
1,659
1,841
2
2
2
9
9
10
73.6
75.8
1,257
1,366
1,480
20
20
20
0
CITY OF
S+ 0
MINNESOTA.
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