ITEM 1 Budget meeting #4
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: August 14, 2017
SUBJECT: Budget Meeting #4
On Monday, Council and staff will resume the review of the draft 2018 General Fund budget. This
meeting is the 2nd of three special meetings scheduled for budget and tax levy review. Please note
that staff is seeking Council input during these budget review meetings in order to effectively and
efficiently move the budgeting process forward. These review meetings lead up to the September
11th regular meeting, where the Council will need to adopt the preliminary property tax levy, which
is the maximum amount the City can levy for taxes payable 2018.
I have developed an outline of discussion topics below.
Property Tax Levy
There has been a net increase of $23,538 in the total levy since the July 31st budget meeting. I will
review each of these in detail, but the net increase is the result of:
- General fund increase of $84,000
- Debt service decrease of $60,462
The 2018 property tax levy currently totals $6,036,302, which is an increase of $406,557 (7.22%)
from the prior year. The best available estimate for the tax rate is 37.293, which is a decrease of
0.559 (1.48%) from the prior year.
Staff would be seeking Council consensus at each meeting regarding the direction of the
preliminary property tax levy amount.
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
Fund Summary
The draft budget is being presented as a balanced budget, with both revenues and expenditures
totaling $5,311,451, which is a 5.37% increase from the prior year.
Revenues
Total revenues have increased $83,700 since the July 31st budget meeting:
- Current Ad-Valorem Taxes (101-31010): Increased $84,000
- Uncollected Property Taxes (101-31011): Increased $300
o This is a negative revenue
These respective changes were made to continue the presentation of a balanced budget.
Expenditures
Total expenditures have increased $83,700 since the July 31st budget meeting:
- Prairie Center (101-41940-390): An amount of $400 was added to this budget for annual
testing and inspections of the fire alarm systems and monitoring equipment.
- City Hall / PW Building (101-41945-390): An amount of $600 was added to this budget for
annual testing and inspections of the fire alarm systems and monitoring equipment.
- Building Inspections (101-42410-390): I have been contacted by the owner of Metro West
regarding the contract rate for 2018. A formal letter is supposedly being drafted and will be
submitted to the Council upon receipt. An increase of $73,200 has been added to this budget
to account for my best estimate of the increase.
- Street Lights (101-43160-322): An amount of $10,000 was added to this budget for the
electricity costs incurred within the Above Standard Street Light District.
- Economic Development (101-46580-355): After discussion at the July 31st budget meeting,
the consensus among the Council was to reduce the budget by $500.
Materials Attached for Discussion
1) Property Tax Levy Summary
2) Department Expenditure Review Schedule
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2
0
1
8
\
P
r
o
p
e
r
t
y
T
a
x
e
s
\
T
a
x
L
e
v
y
C
a
l
c
u
l
a
t
i
o
n
s
8‐14
De
p
a
r
t
m
e
n
t
P
a
g
e
C
o
m
p
l
e
t
e
d
D
e
p
a
r
t
m
e
n
t
P
a
g
e
C
o
m
p
l
e
t
e
d
D
e
p
a
r
t
m
e
n
t
P
a
g
e
C
o
m
pleted
Re
v
e
n
u
e
s
3
Ye
s
Po
l
i
c
e
S
e
r
v
i
c
e
s
2
3
P
r
a
i
r
i
e
C
e
n
t
e
r
1
8
Ci
t
y
C
o
u
n
c
i
l
5
Ye
s
Pu
b
l
i
c
S
a
f
e
t
y
C
o
m
m
i
s
s
i
o
n
2
4
P
a
r
k
M
a
i
n
t
e
n
a
n
c
e
3
8
Ci
t
y
A
d
m
i
n
i
s
t
r
a
t
o
r
7
Ye
s
Fi
r
e
P
r
o
t
e
c
t
i
o
n
2
5
R
e
c
r
e
a
t
i
o
n
4
0
Ad
m
i
n
i
s
t
r
a
t
i
o
n
9
Ye
s
Em
e
r
g
e
n
c
y
M
a
n
a
g
e
m
e
n
t
2
8
H
e
r
i
t
a
g
e
P
r
e
s
e
r
v
a
t
i
o
n
C
o
m
m
i
s
s
i
o
n
4
2
El
e
c
t
i
o
n
s
1
1
Ye
s
St
r
e
e
t
s
3
0
P
l
a
n
n
i
n
g
C
o
m
m
i
s
s
i
o
n
4
3
As
s
e
s
s
i
n
g
1
2
Ye
s
St
r
e
e
t
L
i
g
h
t
s
3
5
P
l
a
n
n
i
n
g
4
4
Fi
n
a
n
c
e
1
3
Ye
s
Fl
e
e
t
M
a
n
a
g
e
m
e
n
t
3
6
E
n
g
i
n
e
e
r
i
n
g
3
4
In
f
o
r
m
a
t
i
o
n
T
e
c
h
n
o
l
o
g
y
1
5
Ye
s
Ci
t
y
H
a
l
l
&
P
u
b
l
i
c
W
o
r
k
s
B
u
i
l
d
i
n
g
2
0
Le
g
a
l
1
7
Ye
s
Ol
d
T
o
w
n
s
h
i
p
S
i
t
e
2
2
Ec
o
n
o
m
i
c
D
e
v
e
l
o
p
m
e
n
t
4
5
Ye
s
Bu
i
l
d
i
n
g
I
n
s
p
e
c
t
i
o
n
2
6
Ye
s
An
i
m
a
l
C
o
n
t
r
o
l
2
9
Ye
s
Ju
l
y
3
1
s
t
A
u
g
u
s
t
1
4
t
h
A
u
g
u
s
t
2
8
t
h
U:
\
B
u
d
g
e
t
\
2
0
1
8
\
2
0
1
8
B
u
d
g
e
t
C
a
l
e
n
d
a
r