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2023 Monticello LTFP 2023 Long-Term Financial Management Plan As of December 19, 2023 Table of Contents Introduction and Summary .................................................................................................................... 1 Approach for the Plan ...................................................................................................................... 2 Organization of the Plan .................................................................................................................. 2 Revenue Sufficiency ......................................................................................................................... 2 Economic Development Programs and Legislative Action to Support Transition Efforts ............... 3 Fund Balance Policy for General Fund ............................................................................................. 3 Proprietary Funds Cash Position and Net Position .......................................................................... 4 Levy and Rate Calculations .............................................................................................................. 4 City Tax Rate .................................................................................................................................... 4 Utility Rates ...................................................................................................................................... 6 Table 1|City Property Tax Levy, Tax Capacity, and Tax Rate ........................................................... 7 Table 1a|Housing and Redevelopment Authority Property Tax Levy, Tax Capacity, & Tax Rate ... 8 Chart 1|Annual Percent Change in Tax Levy and Tax Rate ............................................................. 9 Chart 2|Tax Capacity from Public Utilities as a Percent of Total City Tax Capacity ........................ 9 Chart 3|City Tax Rate ....................................................................................................................... 9 Chart 4|Comparison of Monticello City Tax Rate to Other Comparative Cities ........................... 10 Chart 5|Residential City Property Taxes........................................................................................ 10 Chart 6|Commercial-Industrial City Property Taxes ..................................................................... 10 Chart 7|General Fund Ending Fund Balance ................................................................................. 13 Chart 8|Ending Cash Balances of City Funds ................................................................................. 11 Chart 9|Ending Cash Balances for Capital Projects Funds ............................................................ 11 Chart 10|Water Fund Projected Ending Cash Balance .................................................................. 12 Chart 11|Sewer Fund Projected Ending Cash Balance .................................................................. 12 Chart 12|Stormwater Fund Projected Ending Cash Balance ......................................................... 13 Chart 13|Liquor Fund Projected Ending Cash Balance .................................................................. 13 Chart 14|Fiber Optics Fund Projected Ending Cash Balance ......................................................... 14 Chart 15|Deputy Registrar Fund Projected Ending Cash Balance ................................................. 14 Chart 16|Total City Tax Levy .......................................................................................................... 15 Chart 17|City Tax Levy by Funds as Percent of Total .................................................................... 15 Background Governmental Services .................................................................................................................. 16 Water and Sanitary Sewer Systems ............................................................................................... 16 Stormwater Management & Protection ........................................................................................ 16 Municipal Liquor ............................................................................................................................ 16 Fiber Optics System ....................................................................................................................... 16 Deputy Registrar ............................................................................................................................ 16 Internal Service Funds ................................................................................................................... 16 Chart 18|Construction of New Property and Taxable Market Value ............................................ 17 Chart 19|Net Tax Capacity from New Construction Compared to Existing Property ................... 17 Capital Improvement Plan and Debt Overview ........................................................................................................................................ 18 Downtown ..................................................................................................................................... 18 Pointes at Cedar ............................................................................................................................. 18 Fallon Avenue Improvements ........................................................................................................ 18 Public Works / Engineering ............................................................................................................ 18 Street and Transportation ............................................................................................................. 18 Stormwater / Drainage .................................................................................................................. 18 Water Utility .................................................................................................................................. 19 Sewer Utility................................................................................................................................... 19 Recreation and Culture .................................................................................................................. 19 Fire and Rescue .............................................................................................................................. 19 Building Inspectors/Community Development ............................................................................. 19 Facilities Maintenance ................................................................................................................... 19 Liquor Store ................................................................................................................................... 19 Deputy Registrar ............................................................................................................................ 19 Fiber Optics .................................................................................................................................... 20 Information Technology (IT) .......................................................................................................... 20 Monticello Community Center ...................................................................................................... 20 Bond Issuance ................................................................................................................................ 20 Bond Rating .................................................................................................................................... 20 Table 2|Capital Improvement Plan by Fund and Source of Funds ................................................ 21 Table 3|Capital Improvement Plan - Planned Bond Proceeds to Pay Project Costs ..................... 22 Table 4|Summary of Existing Debt ................................................................................................ 23 Table 5|Summary of Planned New Debt ....................................................................................... 24 Table 6|Summary of Existing and Planned New Debt................................................................... 25 Chart 20|CIP by Fund ..................................................................................................................... 26 Chart 21|CIP Source of Funds ........................................................................................................ 26 Chart 22|Total Debt Service .......................................................................................................... 26 Chart 23|Debt Service Source of Revenues .................................................................................. 27 Chart 24|Bonds Outstanding ......................................................................................................... 27 Chart 25|Total Debt Outstanding by Existing and Planned New Debt ......................................... 27 Chart 26|Tax Levy for Debt Service ............................................................................................... 27 Chart 27|Amortization of Existing Debt ........................................................................................ 28 Chart 28|Debt Per Capita .............................................................................................................. 28 Finance Plans Background .................................................................................................................................... 29 Impact of Strategic Transition Plan on Finance Plans .................................................................... 29 General Overview of Assumptions for Finance Plans .................................................................... 29 GOVERNMENTAL FUNDS Total Governmental Funds Combined ........................................................................................... 30 Chart 29|Total Sources and Uses of Funds ............................................................................. 31 Chart 30|Total Ending Fund Balance and Cash Balance ......................................................... 31 Table 7|Finance Plan ............................................................................................................... 32 General Fund ................................................................................................................................. 34 Chart 31|General Fund Source of Revenues ........................................................................... 34 Chart 32|Ending Fund Balance and City Policy ....................................................................... 36 Chart 33|Expenditures and Revenues .................................................................................... 36 Table 8|Finance Plan ............................................................................................................... 37 Community Center Fund................................................................................................................ 38 Table 9|Finance Plan ............................................................................................................... 39 Economic Development Authority (EDA) Fund ............................................................................. 40 Table 10|Finance Plan ............................................................................................................. 42 Table 10a|Tax Increment Financing Districts Projected Available Year-End Cash Balances .. 43 CDBG and SCDP Fund ..................................................................................................................... 44 Table 11|Finance Plan ............................................................................................................. 45 Cemetery Fund .............................................................................................................................. 46 Table 12|Finance Plan ............................................................................................................. 47 Debt Service Funds ........................................................................................................................ 48 Chart 34|Ending Fund Balance and Cash Balance................................................................... 49 Chart 35|Source and Use of Funds ......................................................................................... 49 Table 13|Finance Plan ............................................................................................................. 50 Capital Projects Fund ..................................................................................................................... 51 Chart 36|Ending Fund Balance and Cash Balance................................................................... 52 Chart 37|Source and Use of Funds ......................................................................................... 52 Table 14|Finance Plan ............................................................................................................. 53 Street Lighting Improvement Fund ................................................................................................ 54 Chart 38|Ending Fund Balance and Cash Balance................................................................... 54 Chart 39|Source and Use of Funds ......................................................................................... 54 Table 15|Finance Plan ............................................................................................................. 55 Park and Pathway Dedication Fund ............................................................................................... 56 Chart 40|Ending Fund Balance and Cash Balance................................................................... 56 Chart 41|Source and Use of Funds ......................................................................................... 56 Table 16|Finance Plan ............................................................................................................. 57 PROPRIETARY FUNDS Water Fund .................................................................................................................................... 58 Chart 42|Ending Cash Balance by Purpose ............................................................................. 60 Chart 43|Unrestricted Net Position ........................................................................................ 60 Chart 44|Revenues and Expenses ........................................................................................... 60 Chart 45|Customers and Annual Volume Billed ..................................................................... 60 Table 17|Finance Plan ............................................................................................................. 61 Table 18|Change in Ending Cash Balance ............................................................................... 62 Table 19|Customers and Volume Billed, Rates, and Revenue from Charges ......................... 63 Sewer Fund .................................................................................................................................... 64 Chart 46|Ending Cash Balance by Purpose ............................................................................. 66 Chart 47|Unrestricted Net Position ........................................................................................ 66 Chart 48|Revenues and Expenses ........................................................................................... 66 Chart 49|Customers and Annual Volume Billed ..................................................................... 66 Table 20|Finance Plan ............................................................................................................. 67 Table 21|Change in Ending Cash Balance ............................................................................... 68 Table 22|Customers and Volume Billed, Rates, and Revenue from Charges ......................... 69 Stormwater Fund ........................................................................................................................... 70 Chart 50|Ending Cash Balance by Purpose ............................................................................. 71 Chart 51|Unrestricted Net Position ........................................................................................ 71 Chart 52|Revenues and Expenses ........................................................................................... 71 Chart 53|Customers and Volume Sold .................................................................................... 71 Table 23|Finance Plan ............................................................................................................. 72 Table 24|Change in Ending Cash Balance ............................................................................... 73 Table 25|Customers and Volume Billed, Rates, and Revenue from Charges ......................... 74 Liquor Fund .................................................................................................................................... 75 Chart 54|Ending Cash Balance by Purpose ............................................................................. 76 Chart 55|Unrestricted Net Position ........................................................................................ 76 Chart 56|Revenues and Expenses ........................................................................................... 76 Table 26|Finance Plan ............................................................................................................. 77 Table 27|Change in Ending Cash Balance ............................................................................... 78 Fiber Optics Fund ........................................................................................................................... 79 Chart 57|Ending Cash Balance by Purpose ............................................................................. 80 Chart 58|Unrestricted Net Position ........................................................................................ 80 Chart 59|Revenues and Expenses ........................................................................................... 80 Table 28|Finance Plan ............................................................................................................. 81 Table 29|Change in Ending Cash Balance ............................................................................... 82 Deputy Registrar Fund ................................................................................................................... 83 Chart 60|Ending Cash Balance by Purpose ............................................................................. 84 Chart 61|Unrestricted Net Position ........................................................................................ 84 Chart 62|Revenues and Expenses ........................................................................................... 84 Table 30|Finance Plan ............................................................................................................. 85 Table 31|Change in Ending Cash Balance ............................................................................... 86 INTERNAL SERVICE FUNDS Benefit Accrual Fund ...................................................................................................................... 87 Table 32|Finance Plan ............................................................................................................. 88 Central Equipment Fund ................................................................................................................ 89 Table 33|Finance Plan ............................................................................................................. 90 Information Technology (IT) Fund ................................................................................................. 91 Table 34|Finance Plan ............................................................................................................. 92 Facilities Maintenance Fund .......................................................................................................... 93 Table 35|Finance Plan ............................................................................................................. 94 Appendices ........................................................................................................................................... 95 Appendix A|Projected Staffing Additions ...................................................................................... 96 Appendix B|Projected Future Development ................................................................................. 98 Appendix C|EDA Sub Funds - TIF Districts Finance Plans ............................................................ 100 EDA General Fund .................................................................................................................. 101 GMEF Fund ............................................................................................................................ 102 TIF Future Fund ...................................................................................................................... 103 TIF 6 Fund .............................................................................................................................. 104 TIF 19 Fund ............................................................................................................................ 105 TIF 20 Fund ............................................................................................................................ 106 TIF 22 Fund ............................................................................................................................ 107 TIF 24 Fund ............................................................................................................................ 108 TIF 29 Fund ............................................................................................................................ 109 TIF 30 Fund ............................................................................................................................ 110 TIF 34 Fund ............................................................................................................................ 111 TIF 39 Fund ............................................................................................................................ 112 TIF 40 Fund ............................................................................................................................ 113 TIF 41 Fund ............................................................................................................................ 114 TIF 42 Fund ............................................................................................................................ 115 TIF 43 Fund ............................................................................................................................ 116 TIF 45 Fund ............................................................................................................................ 117 TIF 46 Fund ............................................................................................................................ 118 Appendix D|Debt Service Tax Levy Summary ............................................................................. 119 Appendix E|Water Residential Customer Billing Example .......................................................... 120 Appendix F|Sanitary Sewer Residential Customer Billing Example ............................................ 120 Appendix G|Stormwater Residential Customer Billing Example ................................................ 120 Appendix H|Combined Utilities Residential Customer Billing Example ...................................... 120 1 INTRODUCTION AND SUMMARY The Community Energy Transition grant awarded in 2021 provided the City of Monticello an opportunity to plan for expected changes at the Monticello Nuclear Generating Plant (the “Xcel Plant”) owned by Xcel Energy (Northern States Power Company). Future decommissioning of the Xcel Plant will impact the taxable market value of this property and other utility- classified property located in Monticello and owned by Xcel. As of tax payable year 2023, property owned by Xcel Energy in Monticello comprises approximately 45% of the City’s total tax capacity value ($15.9 million of $35.3 million). The City is taking a proactive approach to spur sustainable residential, commercial, and industrial growth, intended to minimize the detrimental impacts of a plant closure. While the City is striving for growth across all sectors, there is a significant advantage to industrial growth in this context. The City is focusing on industrial capacity and planning analysis to capitalize on existing and planned industrial land areas within Monticello. As part of this effort, the City is consolidating industrial-related information as part of an overall strategic transition plan. This document, the Long-Term Financial Management Plan (the “Plan”) is intended to serve as a companion guide informing the ongoing financial management for the City as it undertakes the efforts to successfully transition the community. However, the Plan is also used in a broader focus to inform strong, fiscally responsible decisions for the City Council and staff in strategic growth, development, and improvements. The City expects the changes at the Xcel Plant will impact not only the City’s tax base but also employment levels in the City. This in turn will impact general economic activity in the community and in turn may impact the tax valuation of other properties in the City. Information on the wider economic impact of the future plant closure is included in a Center for Energy and Environment (CEE) study, but it is not incorporated into this Plan. The Plan contains proposed strategies and identification of key factors and objectives to monitor with respect to the financial performance of the City’s Governmental Funds and Proprietary Funds (together, the “Funds”). Information on projected property tax levies, and fees and charges needed to fund planned city services, capital improvements, and debt service are included. The two key objectives for the Plan are as follows: • Revenue Sufficiency: Develop and populate a forecasting model to determine the estimated level of revenue needed to satisfy general government and proprietary operations, capital improvements, and debt service, while maintaining adequate reserves for future services and capital needs of the City. • Levy and Rate Calculations: Model projected future tax levies, tax rates, and proposed rates for municipal utility services. The Plan anticipates future capital improvements for years 2024- 2033 (the “CIP”). Estimates were made by the City for project costs and the timing of capital projects. While the specific timing of changes at the Xcel Plant and the timing and cost of build out of municipal infrastructure to support new private development in the City is uncertain, awareness of the challenges is important when considering tax levies, rates for fees and charges, and levels of reserves. 2 Future private development of property within the City has and will continue to provide increased revenue capacity to the City. The rate of future development and addition of new taxpayers and utility customers is a significant variable for the Plan and the projections within. The City will need to continue to monitor development that occurs against the anticipated timing and type of development assumed in the Plan, which will impact the projected revenues included in the Plan. Approach for the Plan The following steps were taken as part of development of the Plan: • The City assumed information on customer activity, including data on historical customer billings and significant industrial users billing data. • The City used historical financial data along with current budget plans and capital improvement plans. • The City made assumptions for future housing units and commercial-industrial building space projected to be constructed in the City and connected to the municipal utilities. • All assumptions and information gathered were organized, analyzed, and used to support the development of the Plan. • 2021 and 2022 data are reconciled with the audited financial statements. 2023 and 2024 budgeted numbers reconcile to the budgets as adopted by the City Council. • City staff edited the Plan with input and feedback on the assumptions, different options for levy and rates, and desired outcomes for the Plan. • The Plan purposively demonstrates that certain Funds may not have sufficient revenues to cover projected expenses or expenditures. The information included in the Plan is intended to support further policy discussions that will be needed to ensure revenues are sufficient. Organization of Plan The Plan is organized into the following sections: 1. Introduction and Summary provides information on the Plan approach, revenue sufficiency, and tax levy and rate calculations. 2. Background provides historical and statistical context for the City including the municipal utilities. 3. CIP and Debt provides information on the City’s plans for equipment, facilities, streets, and maintaining and expanding the utility systems, among other projects. This includes estimates on project costs, timing, and sources of funds. Information on outstanding debt obligations and debt service is included. 4. Finance Plans provide the finance plans (pro forma) for each City Fund. The finance plans include historical, current, and projected revenues and expenses or expenditures, and estimated ending cash balances, along with other balance sheet estimates. Finance plans consider capital improvement plans, both existing and planned debt issuance, and projected property tax revenue and proposed rates for charges for services and sales for the enterprise operations of the City, among other sources and uses of funds. 5. Appendices provide additional data. Revenue Sufficiency The Plan evaluates the sufficiency of revenues to meet current and projected financial requirements for the Funds over the next 3 ten years, which at times are shown to be insufficient. Future decisions regarding tax levies, debt issuances, and timing of expenditures will need to be altered from the Plan to ensure a stable financial position. The Plan is based on certain assumptions for the timing of changes at the Xcel Plant. Economic Development Programs and Legislative Actions to Support Transition Efforts Consideration of Economic Development Programs and legislative actions to support transition efforts is important as the City prepares to transition away from an energy economy. In partnership, the City and the Monticello Economic Development Authority (EDA) have a history of actively leveraging economic development programs to assist with acquisition and/or development and redevelopment of property, and construction of municipal infrastructure. The City and EDA have pursued the use of the following tools: • Establishment of tax increment financing districts for economic development, housing, and redevelopment purposes. • Levying of taxes under the authority granted to the EDA by the City for economic development purposes. • Application for Business Development Funding and Infrastructure Funding programs administered by the Minnesota Employment and Economic Development Department. • Pursuit of other state funding through direct appropriation. The use of these tools and pursuit of other funding through direct appropriation or specific legislative authority should continue to be a focus of the City and EDA. Pursuit of a Local Sales and Use Tax occurred in 2023 when the City requested, and was successful in receiving, legislative action from the State of Minnesota to allow the voters of Monticello to enact a Local Sales and Use Tax. The election for this tax will take place in November of 2024. The proposed funding consists of a 0.5% tax up to $30 million and for no longer than 20 years for the construction of improvements at the Bertram Chain of Lakes (BCOL) Regional Athletic Park and The Pointes at Cedar Recreation Area. Each project has a separate question for approval. Voters must approve by a majority vote. If passed by the voters, there are additional steps that would be needed in the process prior to implementing the approved general local tax. To issue General Obligation Revenue Bonds supported by the pledge of sales tax revenue, the authorizing language for the local sales and use tax must provide the authority for the issuance of the bonds, which it did. The City may pursue other revenue sources, including state grants or special legislation specific to a project or development area. Fund Balance Policy for General Fund The City should continue to actively manage its Funds to achieve its policy goals and to maintain sufficient balances within the Funds to meet City needs, including the need for reserves. City policy is to maintain a minimum fund balance in the General Fund equivalent to 60-75% of the following year’s budgeted operating expenditures. The policy recognizes the need for the City to cash flow its expenditures for the period between the semi-annual tax disbursements it receives from the County, among other needs for cash balance. 4 Proprietary Funds Cash Position and Net Position For purposes of the Plan, the revenue objectives for the Proprietary Funds focus on providing revenue sufficient to achieve an ending cash balance to cover the following purposes: • Three-months of operating expense • Following year’s debt service payments • Following year’s capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes The tables and charts that follow provide a summary of key financial information for the City Funds. For the Water Fund, Sewer Fund, and Stormwater Fund (together, the “Utilities”), the funding of depreciation, or setting aside of funds to replace depreciated infrastructure, is an essential element for establishment of revenue sufficiency. The Plan focuses on the City’s asset management practices to maintain and expand infrastructure at estimated costs. Rather than focus on “funding depreciation”, it is better to gain a strong understanding of the expected future costs and, maybe more importantly, their timing and the plan for replacement of infrastructure and facilities. Utilizing a planned schedule for capital improvements and the incorporation of the City’s capital improvement plans into the Plan achieves this goal. Capital improvement plans combined with financial management targets are critical elements that allow for setting rates that meet City goals. Financial management targets begin with criteria for evaluating overall financial condition. For instance, do projections show sufficient revenues to cover planned operating and capital improvement expenses? The Utilities must do better than break even, but by how much? If debt is issued, what impact does that have on user rates? The Plan helps answer these questions by allocating projected year-end cash balance for the Utilities to defined purposes. The Plan provides a criterion to evaluate revenue sufficiency for the Utilities in addition to the cash objectives. The second criterion is an objective for ending unrestricted net position as a percent of expense. The Plan sets a target (a floor) to maintain an unrestricted net position for the Utilities no lower than 50% of the subsequent year’s estimated expenses. Since most of the revenue in the Utilities comes from user charges, maintaining an unrestricted net position that is equal to at least 50% of expenses will help to ensure that sufficient resources are available to fund basic functions between receipts of user charges. Levy and Rate Calculations The Plan focuses on projecting annual tax levy and the resulting annual tax rates for the City and reviewing the rates for the fees and charges of the Utilities. The City budget process focuses on the tax levy necessary to fund city services. The City tax rate is a factor of the annual tax levy certified by the City spread over the net tax capacity of the City. The county is responsible for certification of taxable market value and calculation of net tax capacity of the City. City Tax Rate Future tax levy increases will be necessary to fund planned expenditures and to maintain adequate cash balances across the Funds. A summary of projected annual City tax levy and tax rates are shown in Figure 1. The tax levy and tax rates are estimated 5 based on assumptions in the Plan, and in some cases, still do not provide for revenue sufficiency. Figure 1. To estimate future tax rates, certain assumptions were made with respect to growth in taxable market value of property in the city. The key assumptions used for the Plan that impact future tax levy and tax rates include the following: • General Fund ad valorem tax levy in the Plan is assumed to increase 5.0%. • General Fund non-tax revenues are estimated to increase by 3.0% to 5.0% annually. There are no major changes assumed for non-tax revenue collections for the General Fund. • Current expenses across all funds are estimated to increase by 2.5% annually. This rate is low based on current market conditions (inflation) but because the Plan covers a ten-year period this rate is assumed to be a reasonable estimate for planning purposes. • Addition of city personnel (FTE) is planned for in the General Fund and is shown to be funded from tax levy. Details on the positions and estimated costs are included in the Finance Plan for the General Fund. • The preliminary taxable market value of property for 2024 is shown as provided by Wright County. • Taxable market value of property in the City, except for value for property classified as “public utilities” is projected to increase by 3.0% annually for assessment years 2025-2032. • Taxable market value for property classified as public utilities, which includes the Xcel Plant, is projected to decline by 3.0% for 2025, and then by 1.0% annually for assessment years 2026-2032. • Residential (single-family) housing unit construction is assumed to average approximately 70 new units per year between tax payable years 2023-2032. The average valuation per unit in today’s dollars is estimated at approximately $290,000 (the analysis assumes annual valuation growth of 3.0%). This is unchanged from the Plan dated May 9, 2022. • Multi-family (apartment) housing unit construction is assumed to average approximately 112 new units per year between tax payable years 2023-2032. The average valuation per unit in today’s dollars is estimated at approximately $190,000 (the analysis assumes annual valuation growth of 3.0%). This is unchanged from the Plan dated May 9, 2022. • Commercial space construction is assumed to average approximately 22,000 square feet per year between tax payable years 2023-2032, with average valuation of $145 Tax Year Tax Levy ($) % Change in Tax Levy Tax Rate % Change in Tax Rate 2022 11,353,000 36.536 2023 12,050,000 6.1% 35.035 -4.1% 2024 13,074,000 8.5% 34.957 -0.2% 2025 15,934,212 21.9% 40.958 17.2% 2026 17,140,617 7.6% 42.394 3.5% 2027 17,727,114 3.4% 42.446 0.1% 2028 18,567,988 4.7% 43.374 2.2% 2029 19,419,811 4.6% 43.871 1.1% 2030 19,980,821 2.9% 43.786 -0.2% 2031 20,568,608 2.9% 43.677 -0.2% 2032 21,119,861 2.7% 43.459 -0.5% 6 per SF in today’s dollars (the analysis assumes annual valuation growth of 3.0%). This is unchanged from the Plan dated May 9, 2022. • Industrial space construction is assumed to average approximately 20,000 square feet per year between tax payable years 2023-2032, with average valuation of $75 per SF in today’s dollars (the analysis assumes annual valuation growth of 3.0%). This is unchanged from the Plan dated May 9, 2022. • Tax increment financing districts will be decertified and provide approximately $130,000, or approximately 0.33% increase in tax capacity for the City between tax payable years 2025-2030. • Bond issuance is assumed to finance certain project costs. Bonds are estimated to be payable from taxes, special assessments, local sales tax (pending election in 2024), and net revenues from the Utilities, depending on the project to be financed. The tables and graphics that follow provide historical and projected tax levy and tax rates along with net tax capacity. Utility Rates The City uses a two-part rate structure for charging fees for water and sanitary sewer services, comprised of both fixed and variable charges. The City charges a fixed rate per residential equivalent unit for stormwater services. A two-part rate structure for water and sanitary sewer services is recommended by generally accepted practices and is a practice followed by most cities within Minnesota. This structure recovers a portion of system costs in a fixed charge, recognizing that both water and sanitary sewer services have certain fixed costs that are incurred year-round. These fixed costs are incurred regardless of the level of water usage by customers. The Plan anticipates future utility rate increases will be needed. The level of utility rate increases will depend on capital project costs and the City’s decision on whether to advance a “pay-go” strategy versus debt financing for capital improvements to the municipal utility systems. The Plan demonstrates that annual rate increases in the range of 3-4%, for example, for utility user fees may not be sufficient to support a pay-go strategy for funding all capital improvement projects. Specifically for the Water Fund and Stormwater Fund, revenues are not projected to be sufficient to meet spending (cash) needs for these operations. Either the amount to be spent on capital improvements will need to be adjusted, or debt issuance incorporated into the Plan, or more significant rate increases will be necessary, or a combination of these strategies. The Plan includes anticipated changes to customers from new development. There is no significant change anticipated for the industrial customers, including customers with service agreements with the City for sanitary sewer services. 7 Table 1 Note: The increase in Year 2025 is more significant than other years. This is due to the projected increase in tax levy for the Debt Service Funds. The Plan anticipates the issuance of debt to finance a new public works facility. City of Monticello 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 TAX LEVY General Fund 7,475,000 8,060,000 8,640,000 9,072,000 9,526,000 10,003,000 10,504,000 11,030,000 11,582,000 12,162,000 12,771,000 Debt Service Funds 2,311,400 1,999,581 2,026,175 4,571,462 5,057,644 4,650,432 4,473,096 4,281,192 4,271,943 4,260,925 4,183,807 Special Revenue Funds (Community Center)485,000 515,000 525,000 540,750 556,973 573,682 590,892 608,619 626,877 645,684 665,054 Capital Projects Funds 1,081,600 1,475,419 1,882,825 1,750,000 2,000,000 2,500,000 3,000,000 3,500,000 3,500,000 3,500,000 3,500,000 TAX LEVY 11,353,000 12,050,000 13,074,000 15,934,212 17,140,617 17,727,114 18,567,988 19,419,811 19,980,821 20,568,608 21,119,861 Annual % Change 2.6% 6.1% 8.5% 21.9% 7.6% 3.4% 4.7% 4.6% 2.9% 2.9% 2.7% TAX CAPACITY Tax Capacity Not Including Public Utilities 16,388,675 18,470,381 21,441,079 22,084,312 22,746,841 23,429,246 24,132,124 24,856,087 25,601,770 26,369,823 27,160,918 Tax Capacity Public Utilities 15,439,295 16,010,549 15,274,064 14,815,842 14,667,683 14,521,007 14,375,796 14,232,038 14,089,718 13,948,821 13,809,333 Tax Capacity from New Development in Future Years - 120,313 1,050,757 2,926,506 4,222,065 5,005,383 5,524,189 6,433,497 7,165,679 8,033,545 8,714,961 Total Tax Capacity 31,827,970 34,601,242 37,765,900 39,826,659 41,636,590 42,955,636 44,032,109 45,521,623 46,857,167 48,352,189 49,685,211 Less TC Captured for Powerlines 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 Less TC Captured within TIF Districts 750,789 203,895 361,633 919,557 1,200,904 1,187,913 1,219,435 1,251,904 1,221,149 1,255,594 1,084,804 NET TAX CAPACITY 31,073,603 34,393,769 37,400,689 38,903,525 40,432,107 41,764,146 42,809,095 44,266,141 45,632,440 47,093,017 48,596,829 Annual % Change 10.68% 8.74% 4.02% 3.93% 3.29% 2.50% 3.40% 3.09% 3.20% 3.19% CITY TAX CAPACITY TAX RATE 36.536 35.035 34.957 40.958 42.394 42.446 43.374 43.871 43.786 43.677 43.459 Annual % Change 2.5% -4.1% -0.2% 17.2% 3.5% 0.1% 2.2% 1.1% -0.2% -0.2% -0.5% CITY PROPERTY TAX LEVY, TAX CAPACITY, AND TAX RATE 8 Table 1a City of Monticello 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 TAX LEVY Economic Development Authority Fund 388,000 402,000 451,000 464,530 478,466 492,820 507,604 522,833 538,518 554,673 571,313 TAX LEVY 388,000 402,000 451,000 464,530 478,466 492,820 507,604 522,833 538,518 554,673 571,313 Annual % Change 3.61% 12.19% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% TAX CAPACITY Tax Capacity Not Including Public Utilities 16,388,675 18,470,381 21,441,079 22,084,312 22,746,841 23,429,246 24,132,124 24,856,087 25,601,770 26,369,823 27,160,918 Tax Capacity Public Utilities 15,439,295 16,010,549 15,274,064 14,815,842 14,667,683 14,521,007 14,375,796 14,232,038 14,089,718 13,948,821 13,809,333 Tax Capacity from New Development in Future Years - 120,313 1,050,757 2,926,506 4,222,065 5,005,383 5,524,189 6,433,497 7,165,679 8,033,545 8,714,961 Total Tax Capacity 31,827,970 34,601,242 37,765,900 39,826,659 41,636,590 42,955,636 44,032,109 45,521,623 46,857,167 48,352,189 49,685,211 Less TC Captured for Powerlines 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 3,578 Less TC Captured within TIF Districts 750,789 203,895 361,633 919,557 1,200,904 1,187,913 1,219,435 1,251,904 1,221,149 1,255,594 1,084,804 NET TAX CAPACITY 31,073,603 34,393,769 37,400,689 38,903,525 40,432,107 41,764,146 42,809,095 44,266,141 45,632,440 47,093,017 48,596,829 Annual % Change 10.68% 8.74% 4.02% 3.93% 3.29% 2.50% 3.40% 3.09% 3.20% 3.19% HRA TAX CAPACITY TAX RATE 1.249 1.169 1.206 1.194 1.183 1.180 1.186 1.181 1.180 1.178 1.176 Annual % Change 5.8% -6.4% 3.2% -1.0% -0.9% -0.3% 0.5% -0.4% -0.1% -0.2% -0.2% Note: The Plan assumes annual HRA levy at the maximum allowed pursuant to state law for HRA levy. The maximum is equal to 0.0185% of taxable market value. HOUSING & REDEVELOPMENT AUTHORITY PROPERTY TAX LEVY, TAX CAPACITY, AND TAX RATE 9 The projected changes in the annual tax levy reflect potential personnel additions and an increase in tax levy for capital improvements, including debt service for capital improvements to be financed by the issuance of bonds. Tax rate is a factor of the tax levy divided by net tax capacity. The annual percentage increase in tax levy is projected to be greater than the annual increase in net tax capacity, causing a projected increase in tax rate. The City is projecting a decline in tax capacity of property in the City classified as “Public Utilities”, driven by anticipated changes at the Xcel Plant. -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 1. Annual change in Tax Levy reflects estimated future levies to fund operations and capital improvements, and change in Tax Rate is further impacted by assumptions for tax base growth Annual % Change in Total Tax Levy Annual % Change in Tax Rate 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Tax Capacity as Percent of TotalChart 2. New Development is Projected to Help Offset Decline in Tax Capacity from Public Utilities Tax Capacity Not Including Public Utilities Tax Capacity from New Development in Future Years Tax Capacity Public Utilities 0.000 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032City Tax RateChart 3. City Tax Rate is a factor of Tax Levy and the Tax Capacity of Taxable Market Value 10 The Plan projects Monticello’s tax rate will increase over the next decade. However, Monticello’s tax rate is projected to be lower than several other comparative cities. The estimated City property taxes for the example residential and commercial-industrial properties, as shown to the right, reflect the impact of projected changes in City tax levy and estimated taxable market value as included in the Plan. 0.00 10.00 20.00 30.00 40.00 50.00 60.00 Otsego Monticello Pay 2022 St. Michael Monticello Pay 2023 Monticello Pay 2024 Monticello Pay 2025 Monticello Pay 2026 Zimmerman Becker Monticello Pay 2027 Monticello Pay 2028 Rockford Monticello Pay 2029 Monticello Pay 2030 Monticello Pay 2031 Monticello Pay 2032 Hanover Albertville Big Lake Buffalo Princeton Chart 4. Comparison of other cities Pay 2023 tax rates to Monticello including comparison to future projected tax payable years for Monticello based on the Plan $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 5. Residential Property City Property Taxes for Different Valued Property Residential $250,000 Residential $300,000 Residential $350,000 Residential $500,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 6. Commercial-Industrial Property City Property Taxes for Different Valued Property Commercial $1,000,000 Commercial $2,000,000 Commercial $3,000,000 Commercial $4,000,000 11 The ending fund balance for the General Fund is projected to decline over the next 10 years. Future adjustments to tax levy or expenditures will be needed to ensure the fund balance stays within policy levels. For the Proprietary Funds in total, change in ending cash balance is driven in part by the timing of collection of trunk charges and the use of these revenues on capital improvements. The reduction in cash balance for the Capital Projects Funds will be remedied with future decision-making regarding grant applications, other funding, and timing of future projects. The ending cash balances within the Capital Projects Funds vary from year to year based on timing of projects and other factors. Future adjustments to revenue and/or spending will be needed to avoid future expenditures exceeding revenues as shown in the Plan. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Ending Fund Balance as % of ExpenseEnding Fund BalanceMILLIONSChart 7. General Fund Ending Fund Balance is projected to be at level that meets City Policy Ending Fund Balance Ending Fund Balance as % of Expenditures Note: City policy provides for a minimum ending fund balance equal to 60% of expenditures. ($20.0) ($15.0) ($10.0) ($5.0) $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 8. Ending Cash Balances are projected to be at levels to meet City objectives for reserves and planned capital improvements General Fund Special Revenue Funds Debt Service Funds Capital Projects Fund Proprietary Funds Internal Service Funds ($6.0) ($4.0) ($2.0) $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 9. Ending Cash Balances for Capital Projects Funds by Categories Capital Projects Fund Street Lighting Improvement Fund Park and Pathway Improvement Fund 12 The decline in cash balance in the Water Fund is due to planned capital spending, including on trunk lines. No bonding for water system infrastructure, except for construction of a Water Treatment Facility, is included in the Plan. For the Water Fund, either the amount to be spent on capital improvements will need to be adjusted, or debt issuance incorporated into the Plan, or more significant rate increases will be necessary, or a combination of these strategies. The increase in the Sewer Fund projected cash balance is driven by the timing of collection of revenue from development charges, for example trunk charges, and the use of these funds for construction of trunk lines and other improvements to support development. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 10. Water Fund Projected Ending Cash Cash for 3-months operating and for following year debt service Cash for following year planned capital Total projected ending cash $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 11. Sewer Fund Projected Ending Cash Cash for 3-months operating and for following year debt service Cash for following year planned capital Total projected ending cash 13 The ending cash balance in the Stormwater Fund is projected to be negative due to planned capital spending. Either additional rate increases will be needed, additional grant funding acquired, planned capital spending adjusted, or debt financing considered for capital, or a combination of these strategies used to ensure positive cash is maintained in the Stormwater Fund. The Liquor Fund ending cash balance is projected to increase. The Plan does not include any transfers of cash from the Liquor Fund to other City Funds, except the transfer to the Capital Projects Fund included in the 2024 budget. The City plans to consider how the projected cash in the Liquor Fund may be used for other municipal purposes. ($1.5) ($1.0) ($0.5) $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 12. Stormwater Fund Projected Ending Cash Cash for 3-months operating and for following year debt service Cash for following year planned capital Total projected ending cash $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 13. Liquor Fund Projected Ending Cash Cash for 3-months operating and for following year debt service Cash for following year planned capital Total projected ending cash 14 The ending cash balance in the Fiber Optics Fund is projected to remain positive due to projected revenues exceeding planned spending, including on annual capital. The City will continue to monitor the projected needs of the Fiber Optics Fund as the telecommunication industry changes. The City is planning to use what it has determined is available cash in the Deputy Registrar Fund to support other City Funds. The Plan includes an annual transfer of $100,000 to the Community Center Fund to provide support for ongoing operations. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 14. Fiber Optics Fund Projected Ending Cash Cash for 3-months operating and for following year debt service Cash for following year planned capital Total projected ending cash $0.0 $0.1 $0.1 $0.2 $0.2 $0.3 $0.3 $0.4 $0.4 $0.5 $0.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 15. Deputy Registrar Fund Projected Ending Cash Cash for 3-months operating and for following year debt service Cash for following year planned capital Total projected ending cash 15 The General Fund levy comprises the largest share of the City’s total tax levy. The tax levy is projected to increase to pay for planned operations, debt, and capital improvements that are not planned to be supported by other sources of revenue. $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 16. Total City Tax Levy All City Funds General Fund Special Revenue Funds (Community Center) Economic Development Authority Fund Debt Service Funds Capital Projects Funds 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Percent of TotalChart 17. City Tax levy by Fund (Purpose) as Percent of Total City Tax Levy General Fund Special Revenue Funds (Community Center) Economic Development Authority Fund Debt Service Funds Capital Projects Funds 16 BACKGROUND The City is located in Wright County approximately 45 miles northwest of the Minneapolis-St. Paul metropolitan area and 25 miles southeast of the City of St. Cloud. Access to the City is via interstate 94 and Highway 25. The land area of the City encompasses approximately 5,720 acres. The City reports an estimated population of 15,087 (2023 estimate). Governmental Services The City provides a full range of municipal government services: police and fire protection; the construction and maintenance of streets, and other infrastructure; recreational activities; and general administrative services. There is one component unit that operates within the City, the Monticello Economic Development Authority, reported in the Plan as a Special Revenue Fund. Water and Sanitary Sewer Systems The City owns and operates a municipal water system that provides service to the urbanized portions of the community. As the community has grown, the City’s water system has expanded. For sanitary sewer, the City’s wastewater treatment facility is operated by Veolia Water North America. The current contract runs through 2026. Stormwater Management & Protection The City has a Stormwater Pollution Prevention Program to reduce pollutant discharge to the maximum extent practicable as required by the Environmental Protection Agency. Municipal Liquor The City operates one off-sale municipal liquor store. The municipal liquor operations are accounted for in a proprietary fund. Revenues from the operation provide revenues to support the operations of the City through transfer of available funds from the Liquor Fund. Fiber Optics System The City owns a fiber optics system. The system began operations in 2010; however, net revenues were not sufficient to fully support operations and the payment of the 2008 Telecommunications Revenue Bonds. The City went into technical default on the bonds in 2012 and a settlement with bondholders was approved in 2014 and judgment bonds issued. In 2016, the City contracted with a private vendor to operate the fiber optics system for five years. In 2021, the agreement with the private vendor was extended an additional five years. The City has not made any interfund transfers to support the Fiber Optics Fund since 2019. The City redeemed the outstanding Telecommunication Bonds in 2021. Deputy Registrar The Deputy Registrar is accounted for in a proprietary fund. The Deputy Registrar provides vehicle and other licensing services. Internal Service Funds The City uses internal service funds to account for benefit accruals, central equipment services, information technology services, and municipal facilities maintenance. Because these internal service fund activities predominantly benefit governmental rather than business-type functions, the City includes these funds within governmental activities in the government-wide financial statements of the City. 17 There is a two year lag between when a project is constructed and the first taxes payable on the improvements. For example, a project constructed in 2023 will be assessed in year 2024 for taxes first payable in year 2025. $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2021 2022 2023 2024 2025 2026 2027 2028 2029MillionsChart 18. Construction of new property (not captured within TIF districts) is projected to provide an increase in taxable market value Commercial and Industrial Residential Construction Completion Year* *This chart begins with year 2021 construction completion. Construction completed in 2021 will be valued in year 2022 for first taxes payable in 2023. Chart 19 that follows shows the impact of the projected construction completion by respective tax payable year. $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 19. Total net tax capacity is projected to increase from both market conditions and new construction From New Construction (net of tax capacity captured in TIF) For Existing Property Note: Net Tax Capacity for Existing Property is based on the assumption that valuation of existing property will increase by 3.0% annually offset by the assumption that the valuation of property owned by Xcel will decrease. The net results is an average annual increase in Net Tax Capacity for Existing Property of approximately 0.5%. 18 CAPITAL IMPROVEMENT PLAN (CIP) AND DEBT Overview The City annually reviews its plans for capital acquisition and improvements and updates its multi-year plan. The capital outlay information included in the Plan provides a high-level summary of the total costs by general category and year, and the proposed funding sources. The Plan includes estimates for years 2024- 2033, described as the next decade in the Plan. The Plan provides information on current debt service on the outstanding debt obligations of the City and estimated future debt service for planned future debt issuance to finance certain projects in the CIP. Downtown Improvements in the Downtown of approximately $13.2 million are planned over the next decade, including the improvement project currently underway. Planned improvements include street improvements, lighting improvements, and park amenities. Source of funding includes available cash and current revenues (i.e., electric franchise revenue) in the Capital Project Fund and Street Lighting Improvement Fund, and grants. Pointes at Cedar Improvements in the Pointes at Cedar of approximately $41.9 million are planned over the next decade. Planned improvements include stormwater improvements, street improvements, lighting improvements, and park and community space amenities. Bonding is anticipated to finance a portion of the costs, with development in the area supporting a portion of the debt service. Voters will also consider a 0.5% sales tax on the ballot in November 2024 to fund some of the project. Fallon Avenue Improvements Improvements to Fallon Avenue, including utilities, and adjacent trail construction, of approximately $15.1 million are planned over the next decade. Bonding is anticipated to finance a portion of the costs, with ad valorem taxes to be pledged. Public Works / Engineering The City is planning for construction of a new public works facility in 2024 at an estimated cost of $35 million. Bonding is anticipated to finance the construction. However, a State bonding bill request for $16 million was submitted for the state legislature’s consideration in 2024. Other capital includes the acquisition of equipment of approximately $2.7 million. Streets and Transportation Improvements to city streets and lighting, among other transportation related improvements, in the amount of approximately $48.3 million is planned over the next decade. These improvements include a potential interchange in the northwest area. Current tax levies in combination with bonding are anticipated to finance these improvements, with ad valorem taxes to be pledged along with special assessments to be levied, and other sources including potential state or federal grants. Stormwater / Drainage Improvements to stormwater and drainage systems of approximately $4.5 million are planned over the next decade, with most of the improvements planned to occur within the next three years. Improvements include pond restoration and construction, stormwater lift station, ditch upgrades, and 19 acquisition of a new street sweeper. The city is working with county staff to acquire funding for the Ditch 33 project. Water Utility Improvements to the water utility system are planned in the approximate amount of $56 million over the next decade. The majority of this relates to trunk water improvements in the amount of $19.8 million, which the City anticipates will be paid mostly from development fees collected in the past and future. The other major improvement is for the water treatment facility at an estimated cost of $28.0 million in 2028. The City was awarded $11 million in state funding for the construction. Additionally, the city anticipates needing to perform cast iron watermain replacement in the amount of $4.1 million over the next ten years. Other improvements include a new water well, and equipment, among other projects. Sewer Utility Improvements to the sewer utility system are planned in the approximate amount of $18 million over the next decade. The majority of this relates to updates to the wastewater treatment plant in the amount of $8.3 million, utility extensions along CSAH 39 West for $2.5 million, and trunk sewer line improvements of $5.1 million. Other improvements include a lift station, and equipment, among other projects. Recreation and Culture Improvements for the benefit of recreation and culture are planned in the approximate amount of $12.7 million over the next decade. The biggest single area of spending is planned for future phases of improvements at Bertram Chain of Lakes Athletic Park for ballfields in the amount of $5.6 million. Other improvements include fleet replacement, playground equipment, regional trail, among other projects. Source of funding is a combination of bonds supported by ad valorem taxes, and current revenues from charges for service and other sources. Voters will also consider a 0.5% sales tax on the ballot in November 2024 to fund some of this multi-phase buildout. Fire and Rescue Improvements, largely for acquisition of equipment for fire and rescue, are planned in the approximate amount of $2 million over the next decade. Building Inspectors/Community Development Scheduled replacement of vehicles for city personnel are planned in the approximate amount of $48,000 over the next decade. Facilities Maintenance Improvements to the municipal governmental facilities, which are focused on repairs and maintenance of existing facilities, are planned in the approximate amount of $4.9 million over the next decade. Liquor Store Improvements to the municipal liquor store parking lot in the approximate amount of $75,000 is the only project planned over the next decade. Deputy Registrar Minimal capital spending for deputy registrar is planned over the next decade. Planned capital costs include $90,000 in 2024 to repave the parking lot and $45,000 in 2031 for a new courier vehicle. 20 Fiber Optics Improvements to the municipal owned fiber optics system for annual capital expansion are planned in the approximate amount of $2.0 million over the next decade. This expense is dependent on new development. Information Technology (IT) The city utilized available funding the past few years to upgrade its IT infrastructure. Therefore, no planned capital expenditures are included in the CIP for 2024-2033. Monticello Community Center Improvements to the Monticello Community Center are planned in the approximate amount of $1.6 million over the next decade. The single largest expenditure is for site hardening and sidewalk/parking lot improvements. Other improvements are related to updates to the old skate park, and regular updates and capital maintenance to the existing facility. Bond Issuance The Plan anticipates the issuance of bonds to finance the planned capital improvements and acquisitions. The tables and graphics that follow provide a summary of existing and future estimated debt service payments and funding sources, along with a summary of debt outstanding by year. The estimated annual debt service for future bonds is included in the finance plans for the Governmental Debt Service Funds and the Proprietary Funds. Bond proceeds for certain projects may represent only a portion of the total estimated project cost, as other sources of cash/revenue are anticipated for certain projects. The final size (amount of bonds to be issued), structure, and interest rates for each planned bond issue will depend on project specifics and market conditions at the time of each issuance. The bonding amounts shown in the Plan are preliminary and for planning purposes only. The par amount of the bonds includes capital acquisition and construction costs, plus cost of issuance of the bonds and, for certain issues, capitalized interest. The debt service for the new bonds is based on the terms stated above and an estimated 3.5-5.0% interest rate on the bonds, depending on the repayment years assumed. Bond Rating Moody’s Investors Service (Moody’s) upgraded the City’s bond rating of the City’s outstanding general obligation debt from A1 to Aa3 on October 4, 2023. The City has not issued general obligation debt since 2020. The rating agency recognized the City’s strong reserves across operating funds and essential enterprises, among other factors. The City’s bond rating is mentioned here because the maintenance and continued relative growth of reserves through revenue sufficiency is an important credit factor for maintaining the City’s credit rating going forward. . 21 Table 2 City of Monticello Capital Improvement Plan Total Capital Outlay by Fund total 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total General Fund General Govt - 3,708 3,708 3,708 3,708 3,708 3,708 3,708 3,708 3,708 33,372 Fire & Rescue - 61,533 61,533 61,533 61,533 61,533 61,533 61,533 61,533 61,533 553,797 Streets - 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 105,000 945,000 Recreation 55,000 53,000 53,000 53,000 53,000 53,000 53,000 53,000 53,000 53,000 532,000 Community Center Fund - 164,000 249,000 264,000 324,000 264,000 264,000 264,000 264,000 264,000 2,321,000 Capital Projects Fund 41,750,000 12,842,000 6,630,000 12,076,954 6,100,000 13,332,000 8,238,172 8,200,000 4,000,000 30,050,000 143,219,126 Street Lighting Fund 1,380,000 235,000 - - - - - - - - 1,615,000 Park & Pathways Fund 87,000 4,525,000 5,250,000 50,000 133,000 1,715,000 - - - - 11,760,000 Utility - Water Fund 1,170,000 14,570,000 13,460,000 460,000 460,000 460,000 460,000 460,000 460,000 460,000 32,420,000 Utility - Water Trunk Fund - 1,936,540 3,803,636 3,148,889 2,443,928 2,517,245 3,345,869 2,670,546 2,750,662 2,750,662 25,367,977 Utility - Sewer Fund 700,000 544,196 182,029 - 50,005 - 178,777 129,658 - - 1,784,665 Utility - Sewer Trunk Fund - 4,750,000 875,008 5,019,027 610,026 628,327 2,962,962 666,592 5,666,592 686,590 21,865,124 Utility - Stormwater Fund - - - - - - - - - - - Utility - Stormwater Trunk Fund 2,015,000 1,180,000 1,490,000 609,000 - 300,000 - - - - 5,594,000 Liquor Store Fund - 125,000 31,500 31,500 31,500 31,500 31,500 31,500 31,500 31,500 377,000 Deputy Registrar Fund 110,000 15,000 15,000 15,000 15,000 15,000 15,000 60,000 15,000 15,000 290,000 Fibernet Fund 200,000 210,398 210,398 210,398 210,398 210,398 210,398 210,398 210,398 210,398 2,093,582 Facilities Maintenance Fund - - - - - 50,000 - - - - 50,000 IT Services Fund - - - - - - - - - - - Central Equipment Fund 292,000 1,466,000 584,000 2,696,000 299,000 523,000 107,000 1,245,000 262,000 - 7,474,000 Total 47,759,000 42,786,375 33,003,812 24,804,009 10,900,098 20,269,711 16,036,919 14,160,935 13,883,393 34,691,391 258,295,643 22 Table 3 City of Monticello Capital Improvement Plan Planned Bond Proceeds to Pay Project Costs* *Estimated bond proceeds deposited to construction fund. Does not include bond proceeds to pay cost of issuance or capitalized interest. Project Costs Paid from Bond Proceeds 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Capital Projects Fund - 30,000,000 5,000,000 4,700,000 4,600,000 460,000 3,500,000 4,200,000 - - Public Works Facility 30,000,000 5,000,000 The Pointes at Cedar 4,700,000 4,600,000 460,000 3,500,000 Fallon Avenue Improvements 4,200,000 Park and Pathway Improvement Fund - - - 4,500,000 - - - - - - Bertram Chain of Lakes Future Phases 4,500,000 Water Fund - - 9,000,000 8,000,000 - - - - - - Water Treatment Plant 9,000,000 8,000,000 Grand Total - 30,000,000 14,000,000 17,200,000 4,600,000 460,000 3,500,000 4,200,000 - - 23 Table 4 City of Monticello Summary of Existing Debt 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Principal General Obligation Bonds 470,000 480,000 490,000 500,000 510,000 520,000 370,000 380,000 385,000 395,000 Special Assessment Bonds 1,100,000 1,120,000 1,145,000 1,165,000 730,000 520,000 490,000 510,000 - - Tax Abatement Bonds 590,000 605,000 625,000 640,000 655,000 680,000 695,000 710,000 740,000 760,000 General Obligation Revenue Bonds 205,000 210,000 215,000 225,000 230,000 240,000 - - - - PFA Revenue Note 107,000 108,000 109,000 111,000 112,000 113,000 114,000 115,000 117,000 118,000 Internal Service Funds Obligations 60,000 60,000 - - - - - - - - Total 2,532,000 2,583,000 2,584,000 2,641,000 2,237,000 2,073,000 1,669,000 1,715,000 1,242,000 1,273,000 Interest General Obligation Bonds 109,718 100,318 90,718 80,918 70,918 60,718 50,318 42,918 35,318 27,233 Special Assessment Bonds 143,743 120,893 97,618 77,150 51,825 33,650 20,700 10,600 - - Tax Abatement Bonds 186,573 171,473 155,973 139,973 122,573 104,748 86,248 67,108 46,151 23,711 General Obligation Revenue Bonds 39,705 34,375 28,600 22,150 15,400 8,040 - - - - PFA Revenue Note 15,786 14,648 13,500 12,341 11,162 9,971 8,770 7,558 6,335 5,092 Internal Service Funds Obligations 3,570 1,830 - - - - - - - - Total 499,093 443,536 386,408 332,531 271,877 217,126 166,035 128,183 87,804 56,036 Debt Service General Obligation Bonds 579,718 580,318 580,718 580,918 580,918 580,718 420,318 422,918 420,318 422,233 Special Assessment Bonds 1,243,743 1,240,893 1,242,618 1,242,150 781,825 553,650 510,700 520,600 - - Tax Abatement Bonds 776,573 776,473 780,973 779,973 777,573 784,748 781,248 777,108 786,151 783,711 General Obligation Revenue Bonds 244,705 244,375 243,600 247,150 245,400 248,040 - - - - PFA Revenue Note 122,786 122,648 122,500 123,341 123,162 122,971 122,770 122,558 123,335 123,092 Internal Service Funds Obligations 63,570 61,830 - - - - - - - - Total 3,031,093 3,026,536 2,970,408 2,973,531 2,508,877 2,290,126 1,835,035 1,843,183 1,329,804 1,329,036 Outstanding General Obligation Bonds 4,845,000 4,365,000 3,875,000 3,375,000 2,865,000 2,345,000 1,975,000 1,595,000 1,210,000 815,000 Special Assessment Bonds 5,680,000 4,560,000 3,415,000 2,250,000 1,520,000 1,000,000 510,000 - - - Tax Abatement Bonds 6,110,000 5,505,000 4,880,000 4,240,000 3,585,000 2,905,000 2,210,000 1,500,000 760,000 - General Obligation Revenue Bonds 1,120,000 910,000 695,000 470,000 240,000 - - - - - PFA Revenue Note 1,378,000 1,270,000 1,161,000 1,050,000 938,000 825,000 711,000 596,000 479,000 361,000 Internal Service Funds Obligations 60,000 - - - - - - - - - Total 19,193,000 16,610,000 14,026,000 11,385,000 9,148,000 7,075,000 5,406,000 3,691,000 2,449,000 1,176,000 24 Table 5 City of Monticello 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Annual Principal General Obligation Bonds - - 645,000 790,000 830,000 1,135,000 1,185,000 1,240,000 1,300,000 1,795,000 Special Assessment Bonds - - - - - - - - - - Tax Abatement Bonds - - - - - - - - - - General Obligation Revenue Bonds - - - 300,000 305,000 635,000 825,000 850,000 870,000 900,000 PFA Revenue Note - - - - - - - - - - Internal Service Funds Obligations - - - - - - - - - - Total - - 645,000 1,090,000 1,135,000 1,770,000 2,010,000 2,090,000 2,170,000 2,695,000 Annual Interest General Obligation Bonds - - 2,271,394 1,867,213 1,722,200 1,865,804 1,795,525 1,982,936 2,036,533 2,141,403 Special Assessment Bonds - - - - - - - - - - Tax Abatement Bonds - - - - - - - - - - General Obligation Revenue Bonds - - - 207,568 176,700 646,421 717,836 619,300 594,425 568,925 PFA Revenue Note - - - - - - - - - - Internal Service Funds Obligations - - - - - - - - - - Total - - 2,271,394 2,074,780 1,898,900 2,512,226 2,513,361 2,602,236 2,630,958 2,710,328 Annual Debt Service General Obligation Bonds - - 2,916,394 2,657,213 2,552,200 3,000,804 2,980,525 3,222,936 3,336,533 3,936,403 Special Assessment Bonds - - - - - - - - - - Tax Abatement Bonds - - - - - - - - - - General Obligation Revenue Bonds - - - 507,568 481,700 1,281,421 1,542,836 1,469,300 1,464,425 1,468,925 PFA Revenue Note - - - - - - - - - - Internal Service Funds Obligations - - - - - - - - - - Total - - 2,916,394 3,164,780 3,033,900 4,282,226 4,523,361 4,692,236 4,800,958 5,405,328 Bonds Outstanding at Year End General Obligation Bonds - 31,210,000 35,740,000 43,070,000 42,240,000 45,775,000 48,145,000 51,170,000 49,870,000 48,075,000 Special Assessment Bonds - - - - - - - - - - Tax Abatement Bonds - - - - - - - - - - General Obligation Revenue Bonds - - 9,135,000 18,175,000 22,540,000 21,905,000 21,080,000 20,230,000 19,360,000 18,460,000 PFA Revenue Note - - - - - - - - - - Internal Service Funds Obligations - - - - - - - - - - Total - 31,210,000 44,875,000 61,245,000 64,780,000 67,680,000 69,225,000 71,400,000 69,230,000 66,535,000 Summary of Planned New Debt 25 Table 6 City of Monticello Summary of Existing and Planned New Debt 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Annual Principal General Obligation Bonds 470,000 480,000 1,135,000 1,290,000 1,340,000 1,655,000 1,555,000 1,620,000 1,685,000 2,190,000 Special Assessment Bonds 1,100,000 1,120,000 1,145,000 1,165,000 730,000 520,000 490,000 510,000 - - Tax Abatement Bonds 590,000 605,000 625,000 640,000 655,000 680,000 695,000 710,000 740,000 760,000 General Obligation Revenue Bonds 205,000 210,000 215,000 525,000 535,000 875,000 825,000 850,000 870,000 900,000 PFA Revenue Note 107,000 108,000 109,000 111,000 112,000 113,000 114,000 115,000 117,000 118,000 Internal Service Funds Obligations 60,000 60,000 - - - - - - - - Total 2,532,000 2,583,000 3,229,000 3,731,000 3,372,000 3,843,000 3,679,000 3,805,000 3,412,000 3,968,000 Annual Interest General Obligation Bonds 109,718 100,318 2,362,112 1,948,130 1,793,118 1,926,522 1,845,843 2,025,853 2,071,850 2,168,636 Special Assessment Bonds 143,743 120,893 97,618 77,150 51,825 33,650 20,700 10,600 - - Tax Abatement Bonds 186,573 171,473 155,973 139,973 122,573 104,748 86,248 67,108 46,151 23,711 General Obligation Revenue Bonds 39,705 34,375 28,600 229,718 192,100 654,461 717,836 619,300 594,425 568,925 PFA Revenue Note 15,786 14,648 13,500 12,341 11,162 9,971 8,770 7,558 6,335 5,092 Internal Service Funds Obligations 3,570 1,830 - - - - - - - - Total 499,093 443,536 2,657,802 2,407,311 2,170,777 2,729,351 2,679,395 2,730,418 2,718,762 2,766,364 Annual Debt Service General Obligation Bonds 579,718 580,318 3,497,112 3,238,130 3,133,118 3,581,522 3,400,843 3,645,853 3,756,850 4,358,636 Special Assessment Bonds 1,243,743 1,240,893 1,242,618 1,242,150 781,825 553,650 510,700 520,600 - - Tax Abatement Bonds 776,573 776,473 780,973 779,973 777,573 784,748 781,248 777,108 786,151 783,711 General Obligation Revenue Bonds 244,705 244,375 243,600 754,718 727,100 1,529,461 1,542,836 1,469,300 1,464,425 1,468,925 PFA Revenue Note 122,786 122,648 122,500 123,341 123,162 122,971 122,770 122,558 123,335 123,092 Internal Service Funds Obligations 63,570 61,830 - - - - - - - - Total 3,031,093 3,026,536 5,886,802 6,138,311 5,542,777 6,572,351 6,358,395 6,535,418 6,130,762 6,734,364 Bonds Outstanding at Year End General Obligation Bonds 4,845,000 35,575,000 39,615,000 46,445,000 45,105,000 48,120,000 50,120,000 52,765,000 51,080,000 48,890,000 Special Assessment Bonds 5,680,000 4,560,000 3,415,000 2,250,000 1,520,000 1,000,000 510,000 - - - Tax Abatement Bonds 6,110,000 5,505,000 4,880,000 4,240,000 3,585,000 2,905,000 2,210,000 1,500,000 760,000 - General Obligation Revenue Bonds 1,120,000 910,000 9,830,000 18,645,000 22,780,000 21,905,000 21,080,000 20,230,000 19,360,000 18,460,000 PFA Revenue Note 1,378,000 1,270,000 1,161,000 1,050,000 938,000 825,000 711,000 596,000 479,000 361,000 Internal Service Funds Obligations 60,000 - - - - - - - - - Total 19,193,000 47,820,000 58,901,000 72,630,000 73,928,000 74,755,000 74,631,000 75,091,000 71,679,000 67,711,000 Debt Subject to Statutory Debt Limit 10,955,000 41,080,000 44,495,000 50,685,000 48,690,000 51,025,000 52,330,000 54,265,000 51,840,000 48,890,000 % of Statutory Debt Limit Used 17% 63% 68% 78% 75% 78% 80% 83% 80% 75% Statutory Debt Limit (EMV * 3.0%)65,207,205 65,207,205 65,207,205 65,207,205 65,207,205 65,207,205 65,207,205 65,207,205 65,207,205 65,207,205 Estimated Legal Debt Margin (Unused Limit)54,252,205 24,127,205 20,712,205 14,522,205 16,517,205 14,182,205 12,877,205 10,942,205 13,367,205 16,317,205 26 Annual capital improvements are projected to vary from year to year. Street improvements are planned for each year, but the annual spending is projected to vary depending on specific projects and timing for construction. Multiple sources of revenue and the use of cash balances are projected to be available for capital spending purposes. Issuance of bonds to finance certain project costs is also planned. $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 20. Capital Improvements Plan by Fund General Fund Community Center Fund Capital Projects Fund Street Lighting Improvement Fund Park and Pathway Improvement Fund Proprietary Funds Facilities Maintenance Fund IT Fund Central Equipment Fund $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 21. Capital Improvement Plan Source of Funds Other revenue sources / use of cash Bond proceeds $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 22. Total Debt Service For Existing and Planned New Debt General Obligation Bonds Special Assessment Bonds Tax Abatement Bonds General Obligation Revenue Bonds PFA Revenue Note Internal Service Funds Obligations 27 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 23. Source of Revenue for Debt Service Property tax Special Assessments Use of fund balance $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041MillionsChart 24. Bonds Outstanding (Existing and Planned New Issuance) General Obligation Revenue Bonds General Obligation Bonds Special Assessment Bonds Tax Abatement Bonds PFA Revenue Note Internal Service Funds Obligations $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 202220232024202520262027202820292030203120322033203420352036203720382039204020412042MillionsChart 25. Total Debt Outstanding Existing and Planned New Debt Planned New Debt Existing Debt $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039MillionsChart 26. Tax Levy for Debt Service Levy for Existing Debt Levy for Planned New Debt 28 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2022 2023 2024 2025 2026 2027 Chart 27. Amortization of Debt Includes Outstanding Existing Debt and Planned New Debt % Amortized within 5 years % Amortized within 10 years - 5,000 10,000 15,000 20,000 25,000 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 City PopulationDebt Per CapitaChart 28. Debt Per Capita for Existing and Planned New Debt Debt Per Capita Population Note: Population growth is assumed at 500 persons per year 29 FINANCE PLANS Background Finance plans have been prepared for the Governmental Funds and the Proprietary Funds. Governmental Funds are used to account for the municipal functions of the City. The acquisition, use, and balances of the City’s expendable financial resources and the related current liabilities are accounted for through the Governmental Funds. The Proprietary Funds are used to account for the City’s ongoing municipal utility operations, liquor store operations, fiber optics, and deputy registrar that are similar to businesses found in the private sector. The City also operates Internal Service Funds on a proprietary basis. The Proprietary Funds and Internal Service Funds are considered self-supporting in that the services rendered by them are financed through user charges. Different than for the Governmental Funds, the Proprietary Funds are presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. For the Proprietary Funds there are accruals of revenues earned and expenses incurred. Impact of Strategic Transition Plan on Finance Plans As noted in the Introduction, the City expects the changes at the Xcel Plant will impact not only the City’s tax base but also employment levels in the City. This in turn will impact general economic activity in the community and in turn may impact the tax valuation of other properties in the city. Information on the wider economic impact of the future plant closure is included in a Center for Energy and Environment (CEE) study but is not incorporated into this Plan. General Overview of Assumptions for Finance Plans The general assumptions used to develop the finance plans, across all of funds, including the Governmental Funds and the Proprietary Funds are as follows: • Annual property tax revenues are projected to be at a level sufficient to fund cash flow requirements and to maintain sufficient fund balance levels. As noted at various times throughout the Plan, future expenditures will have to adjust to ensure the tax levy remains at an acceptable level for the community. • Non-tax revenues are generally estimated to increase by 2-3% annually, with exceptions as noted in the individual finance plans. • Current expenditures/expenses, which includes personnel costs and non-personnel costs for materials and supplies, and other operating costs including professional services are estimated to increase by 2.5% annually, with exceptions as noted in the individual finance plans. Exceptions include potential staffing additions and other operating adjustments. • For the Utility funds, the Plan demonstrates that annual rate increases in the range of 3-4%, for example, for utility user fees may not be sufficient to support a pay-go strategy for funding all capital improvement projects. Either the amount to be spent on capital improvements will need to be adjusted, or debt issuance incorporated 30 into the Plan, or more significant rate increases will be necessary, or a combination of these strategies. TOTAL GOVERNMENTAL FUNDS COMBINED The table that follows provides total sources and uses of funds for the following Governmental Funds combined. Individual Finance Plans are then provided for each of the following funds: • General Fund • Community Center Fund • Economic Development Authority (EDA) Fund • CDBG and SCDP Fund • Cemetery Fund • Debt Service Funds • Capital Projects Fund • Street Lighting Improvement Fund • Park and Pathway Dedication Fund The City maintains separate debt service funds for each bond series issued. For purposes of the Plan, as in the audited financial statements, the individual Debt Service Funds are presented on a combined basis. The EDA Fund includes the combined funds that are managed by the EDA. This includes funds that account for tax increment financing districts. Appendices provide additional reports on the individual sub-funds of the EDA. Revenue Annual source of funds from non-property tax levy sources have been stable for the City and are expected to remain so in the future. The City does not receive local government aid (LGA) from the state. As of year-end 2022 (most current audited financial statements), the City reported total intergovernmental revenue (all sources) at less than 10% of total revenues for the Governmental Funds. Property taxes equaled approximately 64% of total Governmental Fund revenues. Tax levy increases will be needed to pay for increased operating costs, capital improvements, and debt service on bonds anticipated to be issued for planned capital improvements. Expenditures Personnel and other operating costs overall have been and are projected to remain stable in the near term with planned increases in the future to address service demands. The Plan includes a potential increase of approximately $2.0 million for new employees, including the operational costs to support these new positions. Appendices, Exhibit A, includes a listing of potential positions (FTE and dollars). Transfers Recurring transfers are included in the Plan for $100,000 from the Deputy Registrar Fund to the Community Center Fund to support operations and for $6,000 from the General Fund to the EDA Fund for board member stipends. Other one-time transfers are detailed in the financial plans for the respective funds. Balance Sheet For purposes of the Plan, land held for resale by the City or EDA is assumed to be held and not sold. Sale of land held for resale may impact the projected ending cash balances in the Plan. 31 2024 Sources and Uses of Funds are high due to the potential construction and issuance of bonds for a new Public Works Facility. Future adjustments to assumptions for planned spending and funding opportunities are needed to retain the city’s solid financial position for years to come. $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 29. Total Governmental Funds Source and Use of Funds Source of Funds Use of Funds $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 30. Total Governmental Funds Ending Fund Balance and Ending Cash Balance Ending Fund Balance Ending Cash Balance 32 Table 7 – Page 1 of 2 City of Monticello Finance Plan Total Governmental Funds 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 11,565,189 11,823,419 12,452,000 13,525,000 16,398,742 17,619,083 18,219,934 19,075,593 19,942,644 20,519,338 21,123,282 21,691,174 Franchise taxes 383,045 388,074 506,500 521,500 542,325 564,086 586,828 610,599 635,446 661,422 688,580 716,979 Property taxes other - - - - 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 Tax increment 732,689 720,301 529,000 258,000 824,393 942,282 951,494 1,022,016 1,030,800 978,670 987,631 996,680 Special assessments 1,699,141 718,773 387,924 351,099 583,328 475,675 392,390 416,387 378,837 324,109 266,052 255,612 Licenses and permits 804,889 613,014 484,000 487,000 501,610 516,658 532,158 548,123 564,566 581,503 598,949 616,917 Other intergovernmental 1,340,382 1,520,370 913,895 1,057,000 840,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 Charges for services 2,102,752 2,777,175 2,475,079 2,750,843 2,810,508 2,887,837 2,967,453 3,049,426 3,133,830 3,220,742 3,310,240 3,402,406 Fines and forfeitures 49,566 36,808 51,600 51,600 53,148 54,742 56,385 58,076 59,819 61,613 63,461 65,365 Investment earnings (180,723) (961,358) 271,271 174,939 256,039 256,370 257,239 258,070 258,965 259,859 261,250 265,451 Other revenues 769,275 1,849,260 816,231 882,506 921,935 947,512 973,887 1,001,081 1,029,119 1,307,830 1,449,607 1,725,305 Sale of capital assets 571,840 - - - - - - - - - - - Intergovernmental for capital 2,571,685 596,684 3,962,169 3,766,513 1,158,488 841,512 1,600,000 600,000 600,000 600,000 600,000 600,000 Other revenue for capital 121,611 7,088 - - - - - - - - - - Bond proceeds - - - 30,448,780 5,823,529 9,440,000 4,670,000 4,670,000 3,555,000 4,265,000 - - Transfer in 7,176,664 306,726 4,000,000 1,100,000 850,000 850,000 850,000 850,000 850,000 850,000 1,131,000 850,000 Total Revenues 29,708,005 20,396,334 26,849,669 55,374,780 31,585,045 36,066,759 32,728,768 32,830,370 32,710,026 34,301,087 31,151,052 31,856,889 Expenditures Current - General government 2,639,420 2,684,854 2,613,701 2,721,856 2,776,293 2,845,700 2,916,843 2,989,764 3,064,508 3,141,121 3,219,649 3,300,140 Current - Public safety 2,874,183 2,989,883 3,278,367 3,882,331 3,959,978 4,058,977 4,160,451 4,264,463 4,371,074 4,480,351 4,592,360 4,707,169 Current - Economic development 531,823 2,023,817 1,565,240 508,356 517,975 530,762 543,868 557,303 571,073 585,187 599,654 614,483 Capital outlay / acquisition of capital 7,405,428 2,999,832 11,904,669 43,217,000 17,989,241 12,352,241 12,614,195 6,780,241 15,534,241 8,725,413 8,687,241 4,487,241 FTE Increases / Current Expenses - - - - 75,000 77,250 367,068 777,080 1,367,392 1,587,414 1,635,036 1,924,087 Principal payments 6,555,000 2,315,000 2,160,000 2,205,000 2,905,000 3,095,000 2,725,000 2,590,000 2,470,000 2,565,000 2,140,000 2,660,000 Interest payments 685,070 498,959 440,034 392,684 2,615,702 2,165,253 1,967,515 1,880,415 1,795,690 1,951,861 1,971,801 2,051,847 Other expenses 12,723 - 6,966 8,316 - - - - - - - - Transfer out 8,950,321 456,726 - - - - - - - - 281,000 - Current - Recreation and culture 2,708,575 3,483,340 3,940,069 4,327,683 4,445,572 4,578,332 4,703,979 4,833,103 4,965,801 5,102,173 5,242,320 5,386,350 Current - Public works 2,123,898 2,406,209 2,823,966 3,112,573 3,138,124 3,215,328 3,294,461 3,375,572 3,458,712 3,543,929 3,631,278 3,720,810 Current - Sanitation 754,132 784,052 843,897 880,557 898,168 920,622 943,638 967,229 991,410 1,016,195 1,041,600 1,067,640 TIF pay-go note payments 23,714 56,794 70,319 62,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 TIF interfund loan payments - - 16,846 55,000 74,300 74,300 74,300 64,300 58,500 58,500 58,500 58,500 Cost of issuance of bonds - - - 448,780 73,529 140,000 70,000 70,000 55,000 65,000 - - Excess increments 183,012 188,360 176,595 176,595 - - - - - - - - Total Expenditures 35,447,299 20,887,826 29,840,669 61,998,780 39,530,931 34,115,814 34,443,367 29,211,519 38,765,450 32,884,192 33,162,488 30,040,315 Net Change in Fund Balances (5,739,294) (491,492) (2,991,000) (6,624,000) (7,945,887) 1,950,945 (1,714,600) 3,618,852 (6,055,424) 1,416,894 (2,011,436) 1,816,575 Beginning Fund Balance 36,034,364 30,295,070 29,803,578 26,812,578 20,188,578 12,242,691 14,193,636 12,479,036 16,097,888 10,042,464 11,459,359 9,447,922 Ending Fund Balance 30,295,070 29,803,578 26,812,578 20,188,578 12,242,691 14,193,636 12,479,036 16,097,888 10,042,464 11,459,359 9,447,922 11,264,497 33 Table 7 – Page 2 of 2 City of Monticello Finance Plan Total Governmental Funds 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Assets Cash and investments 27,569,628 28,584,681 26,431,126 19,333,739 10,919,016 12,401,694 10,219,715 13,872,001 7,833,421 9,261,642 7,261,218 9,089,028 Taxes receivable 87,526 147,875 102,508 102,508 102,508 102,508 102,508 102,508 102,508 102,508 102,508 102,508 Notes receivable 466,400 564,165 303,074 273,287 242,653 211,448 179,356 146,451 130,136 119,339 108,326 97,091 Due from other governments 149,777 20,172 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 All other receivables and prepaid items 577,792 1,446,969 588,752 588,752 588,752 588,752 588,752 588,752 588,752 588,752 588,752 588,752 Special assessments receivable / deferred 3,567,729 3,628,261 3,453,156 2,640,871 2,188,177 1,821,355 2,120,514 1,821,617 1,544,729 1,308,129 1,117,519 926,909 Land held for resale / inventory 4,514,539 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 3,007,118 Total Assets 36,933,391 37,399,241 33,905,734 25,966,276 17,068,224 18,152,875 16,237,963 19,558,448 13,226,665 14,407,488 12,205,442 13,831,406 Liabilities Due to other governmental units 19,606 46,585 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Unearned revenue 50,048 445,328 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 All other liabilities 773,380 1,071,620 670,000 670,000 670,000 670,000 670,000 670,000 670,000 670,000 670,000 670,000 De ferred inflows of resources 4,894,882 5,137,522 5,503,156 4,187,698 3,235,532 2,369,239 2,168,927 1,870,559 1,594,201 1,358,129 1,167,519 976,909 Escrow deposits 900,405 894,608 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 Total Liabilities and deferred inflows 6,638,321 7,595,663 7,093,156 5,777,698 4,825,532 3,959,239 3,758,927 3,460,559 3,184,201 2,948,129 2,757,519 2,566,909 Fund Balance 30,295,070 29,803,578 26,812,578 20,188,578 12,242,691 14,193,636 12,479,036 16,097,888 10,042,464 11,459,359 9,447,922 11,264,497 Total Liab, deferred inflows, and fund balance 36,933,391 37,399,241 33,905,734 25,966,276 17,068,224 18,152,875 16,237,963 19,558,448 13,226,665 14,407,488 12,205,442 13,831,406 34 GENERAL FUND The General Fund is the primary fund used by the City. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the General Fund constitute the core administrative and operational tasks of the City. Revenues Annual sources of non-tax revenues have been stable and are projected to remain stable. Charges for services provide the single largest source of non-tax revenue to the General Fund, and intergovernmental is the next largest source. Property Tax Property tax revenue is estimated to increase annually to fund general city operations in the General Fund. Total revenues need to be projected to exceed total expenditures in order to maintain the required minimum fund balance for the General Fund. The Plan does not currently reflect this, therefore, assumptions for future year will need to be adjusted. Figure 2 provides the projected General Fund property tax levy by year, along with the annual and cumulative percent increase. Figure 2. Non-Tax Revenue The financial plan for the General Fund is based on non-tax revenue increasing at annual rate of 2-3%, except for Intergovernmental and Other Revenues which are assumed to remain at current levels unless funding has been awarded for futures year, which is then included in the Plan. Property tax 67.7% Intergovernmental 8.3% Charges for services 10.3% All other 13.7% Chart 31. General Fund Sources of Revenues (Based on 2024 Budget) Tax Year Tax Levy ($) % Change in Tax Levy 2022 7,485,252 2023 8,060,000 7.7% 2024 8,640,000 7.2% 2025 9,072,000 5.0% 2026 9,526,000 5.0% 2027 10,003,000 5.0% 2028 10,504,000 5.0% 2029 11,030,000 5.0% 2030 11,582,000 5.0% 2031 12,162,000 5.0% 2032 12,771,000 5.0% 35 Expenditures The General Fund is used to account for the expense of providing general government services for the City. When also considering the costs for contracted police services, which would otherwise be personnel costs of the City, the largest use of funds is for the cost of personnel, including salaries, wages, and benefits. Other costs include operating materials and supplies, equipment, and other professional services. The financial plan is based on the following key assumptions: • Personnel and non-personnel costs for materials and supplies, and all other operating costs including professional services increase by 2-3% annually. • New positions, 23.0 FTE, are included in the General Fund Finance Plan at a total estimated cost of approximately $1.5 million, plus increases for current operating expenses for Parks. The potential additions are as follows: o Year 2025, 1.0 FTE for Parks Seasonal ($75,000) o Year 2027, 1.0 FTE for Fire Chief, 0.5 FTE for Public Works Engineering Staff, and 0.5 FTE Parks Seasonal ($195,500) o Year 2028, 1.0 FTE Community Service Officer, 1.0 FTE Parks Operator, and 1.75 FTE Parks Seasonal ($274,000) plus an additional $30,000 of current operating expense for Parks o Year 2029, 1.0 FTE City Planner, 1.0 FTE Public Works Street Operator, 1.0 FTE Parks Operator, and 6.0 FTE Parks Seasonal ($532,000) plus an additional $35,000 of current operating expense for Parks o Year 2030, 3.0 FTE Parks Part-Time Staff, 1.75 FTE Parks Seasonal ($179,000) o Year 2032, 2.0 FTE Parks Operator, 0.5 FTE Parks Seasonal ($240,000) Transfers Wages and benefits are allocated to the Enterprise Funds for overhead, requiring no annual transfer. Excess fund balance is typically transferred out to Capital Projects Funds or to Internal Service Funds, but that is only if actual financial results for the General Fund are favorable enough to budget. This is an annual decision based on actual financial performance. The General Fund is projected to continue to transfer $6,000 annually to the EDA General Fund to cover the stipends to EDA board members. Fund Balance City policy states that a minimum level of general fund reserve of 60-75% of the following year’s budgeted operating expenditures will be maintained. This reserve is committed to be used for cash flow purposes, unanticipated equipment acquisition and replacement, and to otherwise enable the city to meet unexpected expenditure demands, such as natural disasters, catastrophic events, etc., and/or revenue shortfalls. Property taxes represent the city’s primary source of general fund revenue. Property taxes are collected in June and December of each fiscal year. Since the city’s fiscal year begins on January 1st, the city must maintain an adequate cash balance to meet its expenditure obligations between semi-annual collections of property taxes. Balance Sheet Ending cash balance between 2023-2032 is projected to average approximately $8.0 million annually. 36 Accounts receivable and payable are projected to remain at historical levels. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 32. General Fund Ending fund balance is projected to continue to be at levels above the minimum required Ending Fund Balance Ending Cash Balance $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 33. General Fund Expenditures and Revenues All other revenues Property tax Expenditures 37 Table 8 City of Monticello Finance Plan General Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 7,233,198 7,485,252 8,060,000 8,640,000 9,072,000 9,526,000 10,003,000 10,504,000 11,030,000 11,582,000 12,162,000 12,771,000 Franchise taxes 193,585 226,690 316,500 346,500 363,825 382,016 401,117 421,173 442,232 464,343 487,560 511,938 Property taxes other - - - - 21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 Special assessments 468 418 100 100 - - - - - - - - Licenses and permits 804,889 613,014 484,000 487,000 501,610 516,658 532,158 548,123 564,566 581,503 598,949 616,917 Other intergovernmental 625,382 609,105 513,895 1,057,000 840,000 650,000 650,000 650,000 650,000 650,000 650,000 650,000 Charges for services 1,274,062 1,398,877 1,246,779 1,309,743 1,407,974 1,457,253 1,508,257 1,561,046 1,615,682 1,672,231 1,730,759 1,791,336 Fines and forfeitures 49,566 36,808 51,600 51,600 53,148 54,742 56,385 58,076 59,819 61,613 63,461 65,365 Investment earnings (38,486) (200,442) 32,095 41,031 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Other revenues 690,999 949,507 775,031 824,026 865,227 891,184 917,920 945,457 973,821 1,003,036 1,033,127 1,064,120 Total Revenues 10,833,663 11,119,229 11,480,000 12,757,000 13,274,784 13,648,854 14,239,836 14,858,875 15,507,120 16,185,726 16,896,856 17,641,677 Expenditures Current - General government 2,639,420 2,684,854 2,613,701 2,721,856 2,776,293 2,845,700 2,916,843 2,989,764 3,064,508 3,141,121 3,219,649 3,300,140 Current - Public safety 2,874,183 2,989,883 3,278,367 3,882,331 3,959,978 4,058,977 4,160,451 4,264,463 4,371,074 4,480,351 4,592,360 4,707,169 Current - Economic development - - 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Capital outlay / acquisition of capital - - - - 223,241 223,241 223,241 223,241 223,241 223,241 223,241 223,241 FTE Increases / Current Expenses - - - - 75,000 77,250 275,068 587,320 1,171,939 1,386,097 1,427,680 1,710,511 Transfer out 1,000,000 150,000 - - - - - - - - - - Current - Recreation and culture 1,457,483 1,691,871 1,914,069 2,238,683 2,283,457 2,340,543 2,399,057 2,459,033 2,520,509 2,583,522 2,648,110 2,714,312 Current - Public works 2,123,898 2,400,555 2,823,966 3,027,573 3,088,124 3,165,328 3,244,461 3,325,572 3,408,712 3,493,929 3,581,278 3,670,810 Current - Sanitation 754,132 784,052 843,897 880,557 898,168 920,622 943,638 967,229 991,410 1,016,195 1,041,600 1,067,640 Total Expenditures 10,849,116 10,701,215 11,480,000 12,757,000 13,310,261 13,637,662 14,168,758 14,822,622 15,757,393 16,330,456 16,739,917 17,399,822 Net Change in Fund Balances (15,453) 418,014 - - (35,477) 11,192 71,078 36,253 (250,273) (144,730) 156,939 241,855 Ending Fund Balance 6,624,782 7,042,796 7,042,796 7,042,796 7,007,319 7,018,511 7,089,589 7,125,843 6,875,570 6,730,840 6,887,779 7,129,634 Assets Cash and investments 7,562,592 8,412,721 8,017,796 8,017,796 7,982,319 7,993,511 8,064,589 8,100,843 7,850,570 7,705,840 7,862,779 8,104,634 Taxes receivable 80,285 131,345 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Due from other governments 149,777 20,172 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 All other receivables and prepaid items 434,065 1,273,634 475,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 Special assessments receivable / deferred 390 146 - - - - - - - - - - Total Assets 8,227,109 9,838,018 8,612,796 8,612,796 8,577,319 8,588,511 8,659,589 8,695,843 8,445,570 8,300,840 8,457,779 8,699,634 Liabilities Due to other governmental units 13,244 37,001 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Unearned revenue 50,048 398,888 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 All other liabilities 606,031 634,808 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 Deferred inflows of resources 32,599 829,917 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Escrow deposits 900,405 894,608 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 Total Liabilities and deferred inflows 1,602,327 2,795,222 1,570,000 1,570,000 1,570,000 1,570,000 1,570,000 1,570,000 1,570,000 1,570,000 1,570,000 1,570,000 Fund Balance 6,624,782 7,042,796 7,042,796 7,042,796 7,007,319 7,018,511 7,089,589 7,125,843 6,875,570 6,730,840 6,887,779 7,129,634 Total Liab, deferred inflows, and fund balance 8,227,109 9,838,018 8,612,796 8,612,796 8,577,319 8,588,511 8,659,589 8,695,843 8,445,570 8,300,840 8,457,779 8,699,634 38 COMMUNITY CENTER FUND The Community Center Fund is used to account for the activities of the Community Center facility owned and operated by the City. The Community Center Fund is a Special Revenue Fund. Revenues The major source of revenue for the Community Center Fund is charges for services paid by users of the facility. The charges for services are not sufficient to cover all expenditures and the City certifies a property tax levy to provide additional revenue support. Future transfers from the Deputy Registrar will also be used to support operations. Intergovernmental revenues are one-time revenues related to federal funds for COVID-19 relief. Expenditures Expenditures include personnel, materials and supplies, utilities, and other professional service charges, among other operating costs. The City is also planning for capital improvements to the facility over the next decade. However, much of those costs will be paid by the Capital Projects Fund. New personnel positions, 2.0 FTE, are assumed in the Community Center Fund Finance Plan at a total estimated cost of approximately $187,000 annually in 2027 and 2028. Operating expenditures are projected to increase by 3.0% annually. Transfers The transfer out of $425,000 in 2021 was to the Liquor Fund and relates to a 2020 transfer in from the Liquor Fund. The original transfer provided cash to the Community Center Fund to offset the impacts of COVID-19. These funds were transferred to the Capital Projects Fund in 2021 because the City was able to leverage federal COVID-19 relief funds for the Community Center in lieu of cash from the Liquor Fund. Balance Sheet The available cash balance is projected to decrease over time, with negative cash balance projected by year 2026. The projected revenues are not sufficient to cover planned capital expenditures and increase in staffing. The City is reviewing the long-term capital requirements for the Community Center, along with staffing needs, and potential for other revenue sources to support capital needs at the Community Center. While the plan does assume property tax levy support will increase by 3% annually beginning in year 2024, this along with charges for services is not projected to be sufficient to cover expenditures. The City plans to address the shortfall and adjust expenditures as needed to ensure that the fund does not require advances of cash from other City funds. 39 Table 9 City of Monticello Finance Plan Community Center Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 485,000 485,000 515,000 525,000 540,750 556,973 573,682 590,892 608,619 626,877 645,684 665,054 Other intergovernmental 715,000 385,718 400,000 - - - - - - - - - Charges for services 748,137 1,007,790 1,186,600 1,399,400 1,360,000 1,387,200 1,414,944 1,443,243 1,472,108 1,501,550 1,531,581 1,562,213 Investment earnings 1,464 (10,799) 1,200 1,600 1,462 1,462 1,462 1,462 1,462 1,462 1,462 1,462 Other revenues 35,108 50,300 19,200 32,000 35,108 35,108 35,108 35,108 35,108 35,108 35,108 35,108 Transfer in - - - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Total Revenues 1,984,709 1,918,009 2,122,000 2,058,000 2,037,320 2,080,743 2,125,196 2,170,705 2,217,297 2,264,997 2,313,835 2,363,837 Expenditures Capital outlay / acquisition of capital - 94,019 127,000 - 164,000 249,000 264,000 324,000 264,000 264,000 264,000 264,000 FTE Increases / Current Expenses - - - - - - 92,000 189,760 195,453 201,316 207,356 213,577 Transfer out 425,000 - - - - - - - - - - - Current - Recreation and culture 1,222,328 1,764,309 1,995,000 2,058,000 2,130,030 2,204,581 2,270,718 2,338,840 2,409,005 2,481,275 2,555,714 2,632,385 Total Expenditures 1,647,328 1,858,328 2,122,000 2,058,000 2,294,030 2,453,581 2,626,718 2,852,600 2,868,458 2,946,592 3,027,070 3,109,962 Net Change in Fund Balances 337,381 59,681 - - (256,710) (372,839) (501,523) (681,895) (651,161) (681,594) (713,235) (746,125) Ending Fund Balance 389,738 449,419 449,419 449,419 192,709 (180,130) (681,652) (1,363,547) (2,014,709) (2,696,303) (3,409,538) (4,155,663) Assets Cash and investments 390,752 473,255 424,419 424,419 167,709 (205,130) (706,652) (1,388,547) (2,039,709) (2,721,303) (3,434,538) (4,180,663) Due from other governments - - - - - - - - - - - - All other receivables and prepaid items 53,224 105,590 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Total Assets 443,976 578,845 474,419 474,419 217,709 (155,130) (656,652) (1,338,547) (1,989,709) (2,671,303) (3,384,538) (4,130,663) Liabilities Due to other governmental units 6,172 9,258 - - - - - - - - - - Due to other funds - - - - - - - - - - - - Unearned revenue - 46,440 - - - - - - - - - - All other liabilities 24,177 73,728 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Deferred inflows of resources 23,889 - - - - - - - - - - - Total Liabilities and deferred inflows 54,238 129,426 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Fund Balance 389,738 449,419 449,419 449,419 192,709 (180,130) (681,652) (1,363,547) (2,014,709) (2,696,303) (3,409,538) (4,155,663) Total Liab, deferred inflows, and fund balance 443,976 578,845 474,419 474,419 217,709 (155,130) (656,652) (1,338,547) (1,989,709) (2,671,303) (3,384,538) (4,130,663) 40 EDA FUND The Economic Development Authority (EDA) Fund is used to account for the general operations of the EDA and the various sub-funds administered by the EDA, which includes those to account for the tax increment financing (TIF) districts of the City. The EDA Fund Finance Plan is the combined total of the multiple sub-funds the EDA administers. The Appendix includes additional reports on the individual sub-funds of the EDA that are presented on a combined basis as the EDA Fund. The EDA has the authority to consider the use of tax increment from certain existing tax increment financing districts to pool for other economic development or redevelopment projects, and to assist affordable housing projects. Table 10a provides a summary of the funds (cash) that are projected to be available to be pooled or spent on affordable housing projects. The summary is intended to inform future planning by the EDA. Future planning for use of these funds should consider the limitations that exist in the statutes that govern the use of tax increments, among other factors that will need to be reviewed prior to use of these funds. Included in Appendix C are the finance plans for the individual sub-funds that are combined and reported as the EDA Fund. Revenues The major source of revenues for general operations of the EDA come from property taxes. The enabling resolution of the EDA, as adopted by the City, provides authority for the EDA to levy property taxes. Under Minnesota law, a Housing and Redevelopment Authority (HRA) may levy a tax on its area of operation for the purposes authorized, subject to consent by the city council. The HRA levy may not exceed 0.0185 percent of the estimated market value in the City. The “area of operation” of the authority is the boundaries of the City. Since the Monticello EDA has all the powers of an HRA, as granted by the city council, the EDA may levy an HRA levy. The EDA certified an HRA levy in 2023 for collection in 2024 based on the maximum amount. The Finance Plan for the EDA Fund estimates the EDA will continue to certify a HRA levy at the maximum amount. The other major revenue source for the EDA comes from tax increment revenues from the multiple tax increment financing districts the EDA administers on behalf of the City. This revenue varies from year to year depending on the status of the multiple TIF districts. For year 2024, the EDA is budgeted to collect approximately $258,000 of tax increment revenues. Other revenues to the EDA include investment earnings on cash balances, and other intergovernmental revenue that is received for various projects. Expenditures Most of the expenditures are related to activity within the multiple tax increment financing (TIF) districts. Activities include payment on pay-go TIF revenue notes to developers. Acquisition of property and other redevelopment project costs are incurred by the EDA. The expenditures for personnel costs for the positions that support the EDA, along with contractual professional services, are recorded to the EDA general. Other expenditures include the return of excess tax increments to the County pursuant to the state law that governs the use of tax increments. 41 Transfers The EDA has reported an annual transfer out of cash from the TIF District 1-34 Fund to the Debt Service Funds for a portion of the debt service payment on the General Obligation Bonds, Series 2011A, issued to finance improvements within TIF District No. 1- 34. Transfers ended in 2022 when the bonds were paid off. The EDA also transferred from the EDA General fund to TIF District 1-39 to write-off the outstanding balance of an interfund loan that was approved for an advance of funds to TIF District 1- 39. TIF District 1-39 is decertified and the Fund for this district closed as of year-end 2021. The Finance Plan for the EDA Fund includes the following uses of pooled TIF in years 2023 and 2031 to use available pooled TIF funds. The actual timing of the use of pooled increment is not certain. Transfers include: • $54,818 from TIF 34 to planned TIF 45 (Block 52) for redevelopment project costs. TIF 34 Fund can then be closed • $104,595 from TIF 20 to planned TIF 45 (Block 52) for redevelopment project costs. TIF 20 Fund can then be closed • $281,000 from TIF 1-6 to TIF 1-41 to write-off the projected interfund loan, this assumes that TIF 1-41 does not generate revenue sufficient to repay the original balance of the interfund loan in full The actual timing of the use of pooled increment is not certain and is dependent on project timing. The General Fund of the City is projected to continue to transfer $6,000 annually to the EDA General Fund to cover the stipends to EDA board members. Balance Sheet Much of the cash balance in the EDA Fund is restricted within the multiple TIF districts and must be used pursuant to the state law that governs the use of tax increments. At the end of 2020, for the most recent audited financial statements, the EDA reported a cash balance of $801,521 in the EDA General Fund. This is approximately 28% of the total reported entire year-end 2021 cash balance managed by the EDA. 42 Table 10 City of Monticello Finance Plan EDA Funds 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 368,427 388,291 402,000 451,000 464,530 478,466 492,820 507,604 522,833 538,518 554,673 571,313 Tax increment 732,689 720,301 529,000 258,000 824,393 942,282 951,494 1,022,016 1,030,800 978,670 987,631 996,680 Other intergovernmental - 375,547 - - - - - - - - - - Charges for services 3,170 130,973 - - - - - - - - - - Investment earnings (16,423) (115,830) 42,000 42,000 - - - - - - - - Other revenues 38,775 845,580 14,000 14,000 13,600 13,220 12,859 12,516 12,190 11,881 11,587 11,307 Sale of capital assets 300,000 - - - - - - - - - - - Transfer in - - - - - - - - - - 281,000 - Total Revenues 1,426,638 2,344,862 987,000 765,000 1,302,523 1,433,968 1,457,173 1,542,137 1,565,823 1,529,068 1,834,891 1,579,301 Expenditures Current - Economic development 531,823 2,023,817 1,559,240 502,356 511,975 524,762 537,868 551,303 565,073 579,187 593,654 608,483 Transfer out 198,700 197,925 - - - - - - - - 281,000 - TIF pay-go note payments 23,714 56,794 70,319 62,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 TIF interfund loan payments - - 16,846 55,000 74,300 74,300 74,300 64,300 58,500 58,500 58,500 58,500 Excess increments 183,012 188,360 176,595 176,595 - - - - - - - - Total Expenditures 937,249 2,466,896 1,823,000 796,000 648,324 661,111 674,217 677,652 685,622 699,736 995,203 729,032 Net Change in Fund Balances 489,389 (122,034) (836,000) (31,000) 654,199 772,857 782,955 864,485 880,201 829,332 839,688 850,269 Ending Fund Balance 7,008,094 6,886,060 6,050,060 6,019,060 6,673,259 7,446,116 8,229,071 9,093,556 9,973,758 10,803,090 11,642,777 12,493,046 Assets Cash and investments 3,027,677 4,404,995 3,703,595 3,682,202 4,346,294 5,129,036 5,922,170 6,797,037 7,687,826 8,527,955 9,378,655 10,240,159 Taxes receivable 7,241 16,530 2,508 2,508 2,508 2,508 2,508 2,508 2,508 2,508 2,508 2,508 Notes receivable 316,833 433,743 190,669 181,062 171,169 161,284 151,105 140,723 130,136 119,339 108,326 97,091 All other receivables and prepaid items 3,752 18,465 3,752 3,752 3,752 3,752 3,752 3,752 3,752 3,752 3,752 3,752 Land held for resale / inventory 3,676,957 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 2,169,536 Total Assets 7,032,460 7,043,269 6,070,060 6,039,060 6,693,259 7,466,116 8,249,071 9,113,556 9,993,758 10,823,090 11,662,777 12,513,046 Liabilities Due to other governmental units 190 326 - - - - - - - - - - All other liabilities 21,386 152,474 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Deferred inflows of resources 2,790 4,409 - - - - - - - - - - Escrow deposits - - - - - - - - - - - - Total Liabilities and deferred inflows 24,366 157,209 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Fund Balance 7,008,094 6,886,060 6,050,060 6,019,060 6,673,259 7,446,116 8,229,071 9,093,556 9,973,758 10,803,090 11,642,777 12,493,046 Total Liab, deferred inflows, and fund balance 7,032,460 7,043,269 6,070,060 6,039,060 6,693,259 7,466,116 8,249,071 9,113,556 9,993,758 10,823,090 11,662,777 12,513,046 43 TABLE 10a – TIF Projected Cash City of Monticello Tax Increment Financing Districts Projected Available Year-End Cash Balances 1,5 TIF District Available for Redevelopment Projects Available for Affordable Housing Projects To Be Returned to Local Taxing Jurisdictions Total Funds Available TIF District Available for Redevelopment Projects Available for Affordable Housing Projects Total Funds Available TIF 1-6 3 18,001 18,001 TIF 1-6 3 480,000 480,000 TIF 1-19 - - TIF 1-19 - - TIF 1-20 104,172 104,172 TIF 1-20 - - TIF 1-22 227,273 29,600 180,209 437,082 TIF 1-22 - 56,026 56,026 TIF 1-24 - - TIF 1-24 63,499 63,499 TIF 1-29 - - TIF 1-29 104,281 104,281 TIF 1-30 78,500 78,500 TIF 1-30 - - TIF 1-34 77,370 77,370 TIF 1-34 22,552 22,552 TIF 1-40 6,506 6,506 TIF 1-40 2 85,064 85,064 TIF 1-41 - - TIF 1-41 2 - - TIF 1-42 - - TIF 1-42 960,640 960,640 TIF 1-43 - - TIF 1-43 1,029,802 1,029,802 TIF 1-45 - - TIF 1-45 1,441,610 1,441,610 TIF 1-46 - - TIF 1-46 943,357 943,357 Total 426,816 114,606 180,209 721,631 Total 2,887,519 2,299,312 5,186,831 Notes: 1. The facts for each individual TIF district should be reviewed and confirmed before spending of funds. 2. Available funds must be spent within the boundaries of Redevelopment Project No. 1 or pursuant to the TIF law and any temporary laws that may apply. 3. The funds for TIF 1-6 are shown here as available for "Redevelopment Projects". The funds are also available to pay for housing or economic development project costs, should the EDA so determine. The analysis assumes TIF 41 will generate sufficient tax increment to make payments on the interfund loan that TIF 1-6 provided to TIF 1-41. 4. The amounts shown are after use of funds to meet existing obligations. EDA may captitalize on future flow of funds with approval by resolution. EDA may reimburse itself through an interfund TIF loan. 5. The balances do not include funds that may be available if land held for resale is sold. Cash Available as of Year End 2022 Cash Available as of Year End 2030 4 44 CDBG and SCDP Fund For purposes of the Plan, the Community Development Block Grant (CDBG) and Small Cities Development Program (SCDP) Fund is a combined fund. Revenues Past revenues have come from intergovernmental revenue sources for these programs, among other sources. Expenditures No expenditures in this Fund are planned. Transfers There are no transfers. Balance Sheet The Fund has one Notes Receivable outstanding at the end of 2023. The Note is projected to be amortized by 2029. 45 Table 11 City of Monticello Finance Plan CDBG and SCDP Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings (4,308) (30,286) - - - - - - - - - - Other revenues 4,392 3,873 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Total Revenues 84 (26,413) 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Expenditures Current - General government - - - - - - - - - - - - Total Expenditures - - - - - - - - - - - - Net Change in Fund Balances 84 (26,413) 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Beginning Fund Balance 924,538 924,622 898,209 906,209 914,209 922,209 930,209 938,209 946,209 954,209 962,209 970,209 Changes and adjustments to prior period - - - - - - - - - - - - Ending Fund Balance 924,622 898,209 906,209 914,209 922,209 930,209 938,209 946,209 954,209 962,209 970,209 978,209 Assets Cash and investments 775,055 767,787 793,804 821,984 850,725 880,045 909,958 940,481 954,209 962,209 970,209 978,209 Notes receivable 149,567 130,422 112,405 92,225 71,484 50,164 28,251 5,728 - - - - All other receivables and prepaid items - - - - - - - - - - - - Total Assets 924,622 898,209 906,209 914,209 922,209 930,209 938,209 946,209 954,209 962,209 970,209 978,209 Liabilities Due to other governmental units - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 924,622 898,209 906,209 914,209 922,209 930,209 938,209 946,209 954,209 962,209 970,209 978,209 Total Liab, deferred inflows, and fund balance 924,622 898,209 906,209 914,209 922,209 930,209 938,209 946,209 954,209 962,209 970,209 978,209 46 CEMETERY FUND The Cemetery Fund is used to account for operations at the Riverside Cemetery. The Hillside Cemetery is full, and operations are recorded through the City’s General Fund. Revenue The source of revenue comes from charges for services to operate and maintain the cemetery. Expenditures The expenditure of funds is for the operations and maintenance of the Riverside Cemetery. Transfers There is no transfer of funds. Balance Sheet The fund is projected to have revenue sufficient to cover expenditures and to maintain a positive cash balance. . 47 Table 12 City of Monticello Finance Plan Cemetery Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Charges for services 53,891 67,838 41,700 41,700 42,534 43,385 44,252 45,137 46,040 46,961 47,900 48,858 Investment earnings (283) (3,519) 300 300 - - - - - - - - Other revenues 1 - - - - - - - - - - - Total Revenues 53,609 64,319 42,000 42,000 42,534 43,385 44,252 45,137 46,040 46,961 47,900 48,858 Expenditures Current - Recreation and culture 28,764 26,660 31,000 31,000 32,085 33,208 34,204 35,230 36,287 37,376 38,497 39,652 Total Expenditures 28,764 26,660 31,000 31,000 32,085 33,208 34,204 35,230 36,287 37,376 38,497 39,652 Net Change in Fund Balances 24,845 37,659 11,000 11,000 10,449 10,177 10,048 9,907 9,753 9,585 9,403 9,206 Ending Fund Balance 80,184 117,843 128,843 139,843 150,292 160,469 170,517 180,424 190,177 199,762 209,165 218,371 Assets Cash and investments 79,224 118,325 128,843 139,843 150,292 160,469 170,517 180,424 190,177 199,762 209,165 218,371 All other receivables and prepaid items 960 518 - - - - - - - - - - Total Assets 80,184 118,843 128,843 139,843 150,292 160,469 170,517 180,424 190,177 199,762 209,165 218,371 Liabilities All other liabilities - 1,000 - - - - - - - - - - Total Liabilities and deferred inflows - 1,000 - - - - - - - - - - Fund Balance 80,184 117,843 128,843 139,843 150,292 160,469 170,517 180,424 190,177 199,762 209,165 218,371 Total Liab, deferred inflows, and fund balance 80,184 118,843 128,843 139,843 150,292 160,469 170,517 180,424 190,177 199,762 209,165 218,371 48 DEBT SERVICE FUNDS The Debt Service Fund includes the combined funds used to account for all the City’s governmental debt service, except for governmental debt accounted for in the Internal Service Funds, for Bond Series 2014A issued to finance equipment. The City paid $6,555,000 in principal in 2021 to call the judgment portion of the 2014A bonds early. The outstanding balance of bonds and notes payable at the end of 2022 (audited) was $18,795,000. The year-end cash balance in the Debt Service Funds is projected to remain low because the city structures its bonds so principal is paid in December using funds collected in the same fiscal year. For general obligation bonds, the City is required to have funds available in the respective debt service funds equal to 105% of the debt service payments coming due. Revenue The Debt Service Funds include the following sources of revenue: special assessments, interest income, transfers in from other funds, property tax levy, and, from time to time, bond proceeds for any capitalized interest funds. The Plan anticipates the issuance of general obligation bonds in 2024-2029. Debt accounted for in the Debt Service Funds includes only debt to be supported by general governmental revenues, including tax levy, tax abatement, and special assessments. Debt to be issued that is supported by utility revenues is accounted for in the Proprietary Funds and not within the Debt Service Funds of the City. Expenditures The use of funds is for the payment of debt, including principal and interest payments and other fees related to debt. Transfers Transfers include transfers between debt service funds as debt is retired and remaining balance of funds moved to other debt obligations and to other city funds for non-debt purposes, specifically for capital improvements. Balance Sheet The Plan shows ending cash balance in the Debt Service Funds is projected may not be sufficient to meet all future debt obligations when due. However, the City will ensure it has sufficient means to repay any debt prior to issuing new bonds. 49 Use of funds to pay debt service is projected to come from a combination of property tax revenue, other non-property tax revenue, including special assessments, and interest on investments. Projections of negative cash in years 2029 and later will be reviewed to ensure projected revenue is sufficient to make future bond payments. In 2021, the City called bonds with cash, which is the source of the increase in expenditures shown in Chart 35. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 34. Debt Service Fund Fund balance and cash balance are projected to be at the same level Ending Fund Balance Ending Cash Balance $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 35. Debt Service Fund Total revenues may exceed use of funds due to the timing of collection of revenue and payment of debt Non property tax revenue Property tax revenue Expenditures 50 Table 13 City of Monticello Finance Plan Debt Service Funds 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 2,831,479 2,311,400 1,999,581 2,026,175 4,571,462 5,057,644 4,650,432 4,473,096 4,281,192 4,271,943 4,260,925 4,183,807 Special assessments 272,949 317,269 259,275 244,580 236,388 211,001 144,729 107,598 93,876 90,897 42,456 41,067 Investment earnings (7,194) (53,739) 9,144 4,765 2,320 2,616 3,448 4,244 5,103 5,962 6,788 10,989 Other revenues - - - 4,480 - - - - - 249,806 361,785 606,769 Bond proceeds - - - - 750,000 100,000 - - - - - - Transfer in 3,975,237 197,925 - - - - - - - - - - Total Revenues 7,072,471 2,772,855 2,268,000 2,280,000 5,560,170 5,371,261 4,798,610 4,584,938 4,380,172 4,618,608 4,671,954 4,842,631 Expenditures Principal payments 6,555,000 2,315,000 2,160,000 2,205,000 2,905,000 3,095,000 2,725,000 2,590,000 2,470,000 2,565,000 2,140,000 2,660,000 Interest payments 685,070 498,959 440,034 392,684 2,615,702 2,165,253 1,967,515 1,880,415 1,795,690 1,951,861 1,971,801 2,051,847 Other expenses 12,723 - 6,966 8,316 - - - - - - - - Transfer out - 108,801 - - - - - - - - - - Total Expenditures 7,252,793 2,922,760 2,607,000 2,606,000 5,520,702 5,260,253 4,692,515 4,470,415 4,265,690 4,516,861 4,111,801 4,711,847 Net Change in Fund Balances (180,322) (149,905) (339,000) (326,000) 39,468 111,009 106,095 114,523 114,482 101,747 560,152 130,785 Ending Fund Balance 1,124,210 974,305 635,305 309,305 348,773 459,782 565,877 680,399 794,881 896,628 1,456,781 1,587,565 Assets Cash and investments 1,124,863 972,580 635,305 309,305 348,773 459,782 565,877 680,399 794,881 896,628 1,456,781 1,587,565 All other receivables and prepaid items - - - - - - - - - - - - Special assessments receivable / deferred 1,086,345 1,286,063 1,066,626 862,878 659,129 472,575 345,004 249,635 164,496 79,356 39,678 (0) Total Assets 2,211,208 2,258,643 1,701,931 1,172,183 1,007,902 932,357 910,881 930,034 959,377 975,985 1,496,459 1,587,565 Liabilities All other liabilities 2,499 2,502 - - - - - - - - - - Deferred inflows of resources 1,084,499 1,281,836 1,066,626 862,878 659,129 472,575 345,004 249,635 164,496 79,356 39,678 (0) Total Liabilities and deferred inflows 1,086,998 1,284,338 1,066,626 862,878 659,129 472,575 345,004 249,635 164,496 79,356 39,678 (0) Fund Balance 1,124,210 974,305 635,305 309,305 348,773 459,782 565,877 680,399 794,881 896,628 1,456,781 1,587,565 Total Liab, deferred inflows, and fund balance 2,211,208 2,258,643 1,701,931 1,172,183 1,007,902 932,357 910,881 930,034 959,377 975,985 1,496,459 1,587,565 51 CAPITAL PROJECTS FUND The Capital Projects Fund is used to account for the capital costs for the improvement of governmental public infrastructure and the revenue to pay for the improvements. The City maintains separate funds (outside of the Capital Project Fund) to account for certain street lighting improvements and park and pathway projects. In 2021, the City closed the Street Reconstruction Fund, transferring remaining funds to the Park and Pathway Improvement Fund and to the Central Equipment Fund. For purposes of this Plan, the 2021 Street Reconstruction Fund financial data is included as part of the Capital Project Fund. Capital for Proprietary Funds is accounted for separately in the Proprietary Funds and is not included in this Governmental Capital Project Fund. Revenues The source of revenues comes from a combination of sources, including property tax, intergovernmental, special assessments levied against benefiting properties, transfer from other funds, and bond proceeds, among other sources. The property tax amount is planned to increase over time to allow the City to reduce the amount of bonds that would otherwise need to be issued to fund planned capital improvement projects. Bond proceeds from issuance of bonds to finance improvements are deposited into the Capital Projects Fund. To provide sufficient cash, future bonding is anticipated to pay for improvements. The projected revenue, without bonding, is not projected to be sufficient to cover planned spending. Expenditures The expenditures of funds include engineering, construction, and all other costs related to improvement projects. The respective portion of street improvements that are for utilities are paid directly from the Proprietary Funds (the utility funds) and are not recorded as an expenditure of the Capital Project Fund. Transfers Transfers in come from other City funds, such as when the City closes bond funds that have cash balances remaining after bonds are defeased, and from the General Fund or Liquor Fund, among other funds that may provide transfers for capital. Transfers out in 2021 include $200,000 to the Sewer Fund for future capital expenses and $3,776,538 to Debt Service Fund, for early redemption of the judgment portion of the 2014A Bonds. The Community Center Fund transferred $425,000 of cash to the Capital Project Fund in 2021, which was possible because the Community Center Fund received other intergovernmental funding revenue related to the pandemic. The Plan reflects the assumption that annual transfers from the Liquor Fund will be made to the Capital Projects Fund to provide funding for capital expenditures. Balance Sheet The Capital Projects Fund is projected to have negative cash in future years based on the assumptions in the Plan, which will need to be adjusted through timing of capital expenditures and various funding opportunities. 52 Accounts receivable and payable are projected to remain at historical levels. The special assessments receivable are projected to be paid for by property owners as scheduled. Land held for resale in the amount of approximately $800,000 is assumed to continue to be held. Expenditure and bond proceeds in year 2024 includes the Public Works facility project at estimated cost of $30.0 million. ($6.0) ($4.0) ($2.0) $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 36. Capital Projects Fund Ending Fund Balance and Cash Balance Ending Fund Balance Ending Cash Balance $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 37. Capital Projects Fund Sources and Uses of Funds Bond proceeds Non property tax revenue Property tax revenue Expenditures 53 Table 14 City of Monticello Finance Plan Capital Projects Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 647,085 1,153,476 1,475,419 1,882,825 1,750,000 2,000,000 2,500,000 3,000,000 3,500,000 3,500,000 3,500,000 3,500,000 Special assessments 1,416,718 400,236 127,734 105,640 346,196 263,966 246,989 308,153 284,360 232,648 223,596 214,545 Charges for services 23,492 26,865 - - - - - - - - - - Investment earnings (95,522) (459,248) 174,847 75,022 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Sale of capital assets 271,840 - - - - - - - - - - - Intergovernmental for capital 2,571,685 596,684 3,489,669 3,766,513 1,158,488 841,512 1,600,000 600,000 600,000 600,000 600,000 600,000 Other revenue for capital 121,611 7,088 - - - - - - - - - - Bond proceeds - - - 30,448,780 5,073,529 4,770,000 4,670,000 4,670,000 3,555,000 4,265,000 - - Transfer in 2,088,430 108,801 2,750,000 1,000,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Total Revenues 7,045,339 1,833,902 8,017,669 37,278,780 8,928,214 8,475,478 9,616,989 9,178,153 8,539,360 9,197,648 4,923,596 4,914,545 Expenditures Capital outlay / acquisition of capital 6,700,347 2,822,118 9,272,669 41,750,000 12,842,000 6,630,000 12,076,954 6,100,000 13,332,000 8,238,172 8,200,000 4,000,000 Transfer out 7,307,624 - - - - - - - - - - - Current - Public works - 5,654 - 35,000 - - - - - - - - Cost of issuance of bonds - - - 448,780 73,529 70,000 70,000 70,000 55,000 65,000 - - Total Expenditures 14,007,971 2,827,772 9,272,669 42,233,780 12,915,529 6,700,000 12,146,954 6,170,000 13,387,000 8,303,172 8,200,000 4,000,000 Net Change in Fund Balances (6,962,632) (993,870) (1,255,000) (4,955,000) (3,987,316) 1,775,478 (2,529,965) 3,008,153 (4,847,640) 894,476 (3,276,404) 914,545 Ending Fund Balance 11,862,620 10,868,750 9,613,750 4,658,750 671,434 2,446,913 (83,052) 2,925,101 (1,922,538) (1,028,063) (4,304,466) (3,389,921) Assets Cash and investments 12,384,528 10,913,353 10,801,168 5,346,168 858,852 2,134,331 (895,634) 2,112,519 (2,735,120) (1,840,645) (5,117,048) (4,202,503) All other receivables and prepaid items 23,492 - - - - - - - - - - - Special assessments receivable / deferred 2,480,994 2,342,052 2,386,530 1,774,820 1,526,403 1,346,664 1,773,923 1,570,924 1,379,705 1,228,773 1,077,841 926,909 Land held for resale / inventory 837,582 837,582 837,582 837,582 837,582 837,582 837,582 837,582 837,582 837,582 837,582 837,582 Total Assets 15,726,596 14,092,987 14,025,280 7,958,570 3,222,837 4,318,576 1,715,871 4,521,026 (517,834) 225,710 (3,201,625) (2,438,012) Liabilities All other liabilities 117,631 207,108 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Deferred inflows of resources 3,746,345 3,017,129 4,386,530 3,274,820 2,526,403 1,846,664 1,773,923 1,570,924 1,379,705 1,228,773 1,077,841 926,909 Total Liabilities and deferred inflows 3,863,976 3,224,237 4,411,530 3,299,820 2,551,403 1,871,664 1,798,923 1,595,924 1,404,705 1,253,773 1,102,841 951,909 Fund Balance 11,862,620 10,868,750 9,613,750 4,658,750 671,434 2,446,913 (83,052) 2,925,101 (1,922,538) (1,028,063) (4,304,466) (3,389,921) Total Liab, deferred inflows, and fund balance 15,726,596 14,092,987 14,025,280 7,958,570 3,222,837 4,318,576 1,715,871 4,521,026 (517,834) 225,710 (3,201,625) (2,438,012) 54 STREET LIGHTING IMPROVEMENT FUND The Street Lighting Improvement Fund is used to account for the capital costs for street lighting owned and maintained by the City. Revenues The source of revenues comes from collection of Franchise taxes and investment earnings on the cash balance in the Fund, and non-recurring transfers in from other funds. Revenues are not projected to be sufficient to cover the planned capital improvements. Timing of capital expenditures will need to be evaluated in light of available funding in future years. Expenditures The expenditures of funds include capital improvements of the street lighting system. Transfers A one-time transfer in of $250,000 from the Deputy Registrar Fund is included in the Plan in year 2023. The funds will be used to pay for project costs in the downtown, specifically for project costs to bury electric power lines to support redevelopment of Block 52. Balance Sheet The ending cash balance is projected to be impacted by timing of capital improvements and non-recurring interfund transfers. ($0.6) ($0.4) ($0.2) $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 38. Street Lighting Improvement Fund Ending Fund Balance and Cash Balance Ending Fund Balance Ending Cash Balance $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 39. Street Lighting Improvement Fund Sources and Uses of Funds Bond proceeds Non property tax revenue Property tax revenue Expenditures 55 Table 15 City of Monticello Finance Plan Street Lighting Improvement Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Franchise taxes 189,460 161,384 190,000 175,000 178,500 182,070 185,711 189,426 193,214 197,078 201,020 205,040 Investment earnings (5,181) (45,715) 9,500 10,000 - - - - - - - - Intergovernmental for capital - - 472,500 - - - - - - - - - Transfer in - - 250,000 - - - - - - - - - Total Revenues 184,279 115,669 922,000 185,000 178,500 182,070 185,711 189,426 193,214 197,078 201,020 205,040 Expenditures Capital outlay / acquisition of capital - 37,993 1,130,000 1,380,000 235,000 - - - - - - - Current - Public works - - - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Total Expenditures - 37,993 1,130,000 1,430,000 285,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Net Change in Fund Balances 184,279 77,676 (208,000) (1,245,000) (106,500) 132,070 135,711 139,426 143,214 147,078 151,020 155,040 Ending Fund Balance 1,180,207 1,257,883 1,049,883 (195,117) (301,617) (169,547) (33,836) 105,590 248,804 395,883 546,903 701,943 Assets Cash and investments 1,122,668 1,213,352 989,883 (255,117) (361,617) (229,547) (93,836) 45,590 188,804 335,883 486,903 641,943 All other receivables and prepaid items 57,539 44,531 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 Total Assets 1,180,207 1,257,883 1,049,883 (195,117) (301,617) (169,547) (33,836) 105,590 248,804 395,883 546,903 701,943 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 1,180,207 1,257,883 1,049,883 (195,117) (301,617) (169,547) (33,836) 105,590 248,804 395,883 546,903 701,943 Total Liab, deferred inflows, and fund balance 1,180,207 1,257,883 1,049,883 (195,117) (301,617) (169,547) (33,836) 105,590 248,804 395,883 546,903 701,943 56 PARK AND PATHWAY DEDICATION FUND The Park and Pathway Dedication Fund is used to account for the capital costs for park and pathway construction paid from park dedication fees collected at time of development of property. Revenues Revenues include park dedication fees and investment earnings on the Fund’s cash balance, in addition to other non-recurring revenues. Bond proceeds are anticipated in 2026 for costs of the next phase at Bertram Chain of Lakes Regional Athletic Park. While not reflected in the Plan, additional bonds may need to be issued in future years to pay for certain other project costs. The Plan does not include estimates for future collection or future use of park dedication fees from development. While the City does expect to collect future park dedication fees these funds will be used for purposes specific to future development and for projects that are not planned in the CIP. Expenditures The expenditures of funds include capital improvements of the park and pathway system. Transfers Future transfers in of $250,000 from the Liquor Fund are projected annually into this Fund. Balance Sheet The Park and Pathway Fund is projected to not have sufficient revenue to cover planned capital improvements. The City will address this in future decisions among the various strategies the City has available. ($6.0) ($5.0) ($4.0) ($3.0) ($2.0) ($1.0) $0.0 $1.0 $2.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 40. Park and Pathway Dedication Fund Ending Fund Balance and Cash Balance Ending Fund Balance Ending Cash Balance $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 41. Park and Pathway Dedication Fund Sources and Uses of Funds Bond proceeds Non property tax revenue Property tax revenue Expenditures 57 Table 16 City of Monticello Finance Plan Park and Pathway Improvement Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Special assessments 9,006 850 815 779 743 707 672 636 600 565 0 0 Other intergovernmental - 150,000 - - - - - - - - - - Charges for services - 144,832 - - - - - - - - - - Investment earnings (14,790) (41,780) 2,185 221 2,257 2,293 2,328 2,364 2,400 2,435 3,000 3,000 Other revenues - - - - - - - - - - - - Bond proceeds - - - - - 4,570,000 - - - - - - Transfer in 1,112,997 - 1,000,000 - 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 Total Revenues 1,107,213 253,902 1,003,000 1,000 253,000 4,823,000 253,000 253,000 253,000 253,000 253,000 253,000 Expenditures Capital outlay / acquisition of capital 705,081 45,702 1,375,000 87,000 4,525,000 5,250,000 50,000 133,000 1,715,000 - - - Transfer out 18,997 - - - - - - - - - - - Current - Recreation and culture - 500 - - - - - - - - - - Cost of issuance of bonds - - - - - 70,000 - - - - - - Total Expenditures 724,078 46,202 1,375,000 87,000 4,525,000 5,320,000 50,000 133,000 1,715,000 - - - Net Change in Fund Balances 383,135 207,700 (372,000) (86,000) (4,272,000) (497,000) 203,000 120,000 (1,462,000) 253,000 253,000 253,000 Ending Fund Balance 1,100,613 1,308,313 936,313 850,313 (3,421,687) (3,918,687) (3,715,687) (3,595,687) (5,057,687) (4,804,687) (4,551,687) (4,298,687) Assets Cash and investments 1,102,269 1,308,313 936,313 847,140 (3,424,331) (3,920,803) (3,717,274) (3,596,745) (5,058,216) (4,804,687) (4,551,687) (4,298,687) All other receivables and prepaid items 4,760 4,231 - - - - - - - - - - Special assessments receivable / deferred - - - 3,173 2,644 2,116 1,587 1,058 529 0 0 0 Total Assets 1,107,029 1,312,544 936,313 850,313 (3,421,687) (3,918,687) (3,715,687) (3,595,687) (5,057,687) (4,804,687) (4,551,687) (4,298,687) Liabilities All other liabilities 1,656 - - - - - - - - - - - Deferred inflows of resources 4,760 4,231 - - - - - - - - - - Total Liabilities and deferred inflows 6,416 4,231 - - - - - - - - - - Fund Balance 1,100,613 1,308,313 936,313 850,313 (3,421,687) (3,918,687) (3,715,687) (3,595,687) (5,057,687) (4,804,687) (4,551,687) (4,298,687) Total Liab, deferred inflows, and fund balance 1,107,029 1,312,544 936,313 850,313 (3,421,687) (3,918,687) (3,715,687) (3,595,687) (5,057,687) (4,804,687) (4,551,687) (4,298,687) 58 WATER FUND The Water Fund is a Proprietary Fund used to account for the costs of providing municipal water services to residents and businesses. The Fund is considered self-supporting in that the services rendered are financed through user charges. The Water Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues Revenue sources are charges for services, special assessments, access and trunk charges from development, and other sources including investment earnings, and penalties and interest on charges for services, among other sources. In 2023, the City successfully secured state funding in the amount of $11 million to pay for costs to construction a water treatment facility. The total cost of the project is estimated at $28 million, and construction is anticipated in 2025 and 2026. Future growth from development, which impacts the projection of operating and non-operating revenue for the Water Fund, is assumed to average 82 units per year between 2023-2032 for new residential and commercial customer units. The Plan includes the rates approved for 2024, and rates for years 2025-2033 are estimated at 7.0% annually. The Plan assumes an annual increase in the trunk and access charges of 4.0% along with an average of 100 acres per year to be platted and subject to the trunk charge. The fee increases are projected as needed to cover both increasing operating costs and to pay for the cost of maintenance and improvement of infrastructure for water service, including improvements to the treatment facility. Based on projected revenues and expenses, the Water Fund will not have adequate cash available to support planned capital improvements in years 2028-2032. The City will need to consider whether to adjust the otherwise planned rate increases, modify its capital plans, consider debt or other financing, or a combination of these strategies. For purposes of the Plan, the revenue objective for the Water Fund focused on providing revenue sufficient to achieve ending year-end cash balance to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes The Plan anticipates proceeds from the issuance of general obligation revenue bonds to finance the construction of a water treatment facility only. There is no bonding included for other capital improvement projects. Expenses Expenses include operations, capital, interest expense on debt, and depreciation of capital assets. 59 The Plan anticipates the addition of new position (1.0 FTE) in 2028 (to coincide with operation of the water treatment plant) and a second position (1.0 FTE) in 2030. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. New capital is depreciated over a 40-year term in the Plan. Annual debt service payments on future bonds issued to finance water capital expenditures will be supported by net revenues of the Water Fund. There is no existing debt outstanding for which revenues of the Water Fund are currently pledged. Transfers There are no recurring interfund transfers in the Water Fund. Balance Sheet The Water Fund is presently shown to not have sufficient revenues available to pay for planned capital improvements based on the proposed timing and amount for projects. As noted earlier, the City will need to consider its options to address the projected shortfall. Future estimated receivables and payable are projected to remain at historic amounts during the planning period. 60 -$4.0 -$2.0 $0.0 $2.0 $4.0 $6.0 $8.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 42. Water Fund Ending Cash Balance by Purpose Cash available for future capital / unassigned Cash for 3-months operating reserve Cash for next year debt service Cash for next year planned capital 0% 100% 200% 300% 400% 500% 600% $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending unrestricted Net Position as % of ExpensesMillionsChart 43. Water Fund Unrestricted Net Position Ending Unrestricted Net Position Ending Unrestricted Net Position as % of Expenses $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart44. Water Fund Revenues and Expenses Revenues Expenses 0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total Customer Units (ERU)Volume Billed (1,000 Gal)Chart 45. Water Fund Customers and Annual Volume Billed Water Volume Billed Total Customer Units 61 Table 17 City of Monticello Finance Plan Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Special assessments 37,421 25,593 10,000 10,000 - - - - - - - - Licenses and permits - - 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Other intergovernmental 17,491 76,233 - - - - - - - - - - Charges for services 1,598,654 1,623,892 1,582,049 1,706,955 2,178,920 2,358,236 2,575,941 2,776,401 3,021,206 3,233,215 3,513,943 3,759,919 Investment earnings (28,964) (232,824) 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Other revenues 98,933 64,799 5,951 6,045 3,051 3,051 3,051 3,051 3,051 3,051 3,051 3,051 Intergovernmental for capital - - - - 6,000,000 5,000,000 - - - - - - Connection / access charges 164,129 100,545 65,000 65,000 304,150 162,795 301,729 120,533 275,892 16,588 281,716 14,886 Penalties and interest 26,093 29,278 30,000 30,000 - - - - - - - - Trunk charges 78,430 184,921 15,000 15,000 1,567,647 1,539,941 1,678,974 1,632,524 1,786,066 1,698,854 1,922,103 1,835,799 Total 1,992,187 1,872,437 1,760,000 1,885,000 10,105,768 9,116,022 4,611,694 4,584,509 5,138,215 5,003,708 5,772,812 5,665,654 Expenses FTE Increases / Current Expenses - - - - - - - - 99,000 101,970 219,029 225,600 Depreciation 499,945 497,021 517,271 546,521 959,185 1,390,776 1,480,998 1,553,596 1,628,027 1,723,174 1,801,438 1,881,705 Transfer out - - - - - - - - - - - - Interest payments - - - - - 207,568 176,700 355,104 321,500 309,700 297,700 285,400 Operating expense before depreciation 761,658 844,725 1,432,000 1,234,000 1,271,020 1,309,151 1,348,425 1,388,878 1,430,544 1,473,461 1,517,664 1,563,194 Cost of issuance of bonds - - - - 135,000 120,000 - - - - - - Total 1,261,603 1,341,746 1,949,271 1,780,521 2,365,205 3,027,494 3,006,123 3,297,578 3,479,071 3,608,305 3,835,831 3,955,899 Change in Net Position 730,584 530,691 (189,271) 104,479 7,740,563 6,088,528 1,605,571 1,286,931 1,659,144 1,395,404 1,936,981 1,709,755 Ending net position 14,512,333 15,043,024 14,853,753 14,958,232 22,698,795 28,787,323 30,392,894 31,679,825 33,338,969 34,734,373 36,671,353 38,381,108 Assets Cash and investments 5,930,504 7,400,620 6,430,308 5,936,045 7,285,101 5,341,618 4,535,148 3,917,596 3,658,371 2,391,929 2,384,801 2,135,599 Due from other governments 9,590 - - - - - - - - - - - All other receivables and prepaid items 182,210 223,534 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Special assessments receivable / deferred 352,392 354,634 149,831 125,094 104,245 83,396 62,547 41,698 20,849 0 0 0 Capital assets 21,962,535 22,237,913 23,047,913 24,217,913 40,724,453 57,988,089 61,596,978 64,500,906 67,478,151 71,284,020 74,414,566 77,625,228 Accumulated depreciation (13,722,360) (14,204,028) (14,721,299) (15,267,820) (16,227,005) (17,617,781) (19,098,779) (20,652,375) (22,280,402) (24,003,576) (25,805,014) (27,686,719) Deferred outflows of resources 71,780 70,787 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Total Assets and Deferred Outflows 14,786,651 16,083,460 15,068,753 15,173,232 32,048,795 45,957,323 47,257,894 47,969,825 49,038,969 49,834,373 51,156,353 52,236,108 Liabilities Due to other governmental units - - - - - - - - - - - - All other liabilities 175,417 390,990 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Deferred inflows of resources 98,901 649,446 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Bonds payable - - - - 9,135,000 16,955,000 16,650,000 16,075,000 15,485,000 14,885,000 14,270,000 13,640,000 Total Liabilities and Deferred Inflows 274,318 1,040,436 215,000 215,000 9,350,000 17,170,000 16,865,000 16,290,000 15,700,000 15,100,000 14,485,000 13,855,000 Total Liabilities, Deferred Inflows, and Net Position 14,786,651 16,083,460 15,068,753 15,173,232 32,048,795 45,957,323 47,257,894 47,969,825 49,038,969 49,834,373 51,156,353 52,236,108 62 Table 18 City of Monticello Finance Plan - Change in Ending Cash Balance Water Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance and Other Expense 1,432,000 1,234,000 1,406,020 1,429,151 1,348,425 1,388,878 1,529,544 1,575,431 1,736,693 1,788,794 Capital Acquisition / Outlay 810,000 1,170,000 16,506,540 17,263,636 3,608,889 2,903,928 2,977,245 3,805,869 3,130,546 3,210,662 Interfund Transfers Out - - - - - - - - - - Debt Service (includes transfers for debt)- - - 507,568 481,700 930,104 911,500 909,700 912,700 915,400 Total Use of Cash 2,242,000 2,404,000 17,912,560 19,200,354 5,439,014 5,222,910 5,418,289 6,291,000 5,779,939 5,914,856 Source of Cash Revenues 1,760,000 1,885,000 10,105,768 9,116,022 4,611,694 4,584,509 5,138,215 5,003,708 5,772,812 5,665,654 Bond Proceeds - - 9,135,000 8,120,000 - - - - - - Interfund Transfers In - - - - - - - - - - Total Source of Cash 1,760,000 1,885,000 19,240,768 17,236,022 4,611,694 4,584,509 5,138,215 5,003,708 5,772,812 5,665,654 Net Change in Other Assets and Liabilities (488,312) 24,737 20,849 20,849 20,849 20,849 20,849 20,849 - - Change in Cash Balance (970,312) (494,263) 1,349,057 (1,943,483) (806,471) (617,552) (259,225) (1,266,442) (7,127) (249,202) Ending Cash 6,430,308 5,936,045 7,285,101 5,341,618 4,535,148 3,917,596 3,658,371 2,391,929 2,384,801 2,135,599 Ending Cash by Purpose Cash for next year planned capital 1,170,000 1,506,540 4,263,636 3,608,889 2,903,928 2,977,245 3,805,869 3,130,546 3,210,662 2,750,662 Cash for next year debt service - - 507,568 481,700 930,104 911,500 909,700 912,700 915,400 912,800 Cash for 3-months operating reserve 308,500 317,755 327,288 337,106 347,219 382,386 393,858 434,173 447,199 460,615 Cash available for future capital / unassigned 4,951,808 4,111,750 2,186,610 913,923 353,896 (353,535) (1,451,056) (2,085,491) (2,188,459) (1,988,477) Ending Cash 6,430,308 5,936,045 7,285,101 5,341,618 4,535,148 3,917,596 3,658,371 2,391,929 2,384,801 2,135,599 63 Table 19 City of Monticello Finance Plan - Customers and Volume Billed, Rates, and Revenue from Charges Water Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Customers and Usage Residential, commercial, and irrigation customers 4,449 4,449 4,449 4,536 4,671 4,738 4,861 4,905 5,008 5,009 5,106 5,106 Volume billed: Residential, commercial, and irrigation Tier 1: First 1000 gallons 53,388 53,388 53,388 54,432 56,052 56,856 58,332 58,860 60,096 60,108 61,272 61,272 Residential, commercial, and irrigation Tier 2: 1,001-10,000 gallons 490,896 510,897 510,897 520,293 534,873 542,109 555,393 560,145 571,269 571,377 581,853 581,853 Residential, commercial, and irrigation Tier 3: 10,001-33,000 gallons 90,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Residential, commercial, and irrigation Tier 4: >33,000 gallons 30,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Total Residential Volume Billed 664,284 664,285 664,285 674,725 690,925 698,965 713,725 719,005 731,365 731,485 743,125 743,125 Industrial customers 2 2 2 2 2 2 2 2 2 2 2 2 Volume billed: Industrial Tier 1: >0 gallons 29,335 29,335 29,335 29,335 29,335 29,335 29,335 29,335 29,335 29,335 29,335 29,335 Total Customers 4,451 4,451 4,451 4,538 4,673 4,740 4,863 4,907 5,010 5,011 5,108 5,108 Total Volume Billed 693,619 693,620 693,620 704,060 720,260 728,300 743,060 748,340 760,700 760,820 772,460 772,460 State connection charge (per year)874 874 874 961 1,096 1,163 1,286 1,330 1,433 1,434 1,531 1,531 Trunk water charge - residential (per residential unit)68 13 13 87 135 67 123 44 103 1 97 - Water access charge - 1 1/4" line 264 - - 87 135 67 123 44 103 1 97 - Trunk Charge for Annexation Areas (per acre)- - - 100 100 100 100 100 100 100 100 100 Customer Fees (in dollars) Residential, commercial, and irrigation minimum first 1000 gallons 7.81 8.04 8.68 9.37 10.03 10.73 11.48 12.29 13.15 14.07 15.05 16.11 Residential, commercial, and irrigation Tier 2: 1,001-10,000 gallons 1.83 1.88 2.03 2.19 2.35 2.51 2.69 2.87 3.07 3.29 3.52 3.77 Residential, commercial, and irrigation Tier 3: 10,001-33,000 gallons 2.12 2.18 2.35 2.54 2.72 2.91 3.11 3.33 3.56 3.81 4.08 4.36 Residential, commercial, and irrigation Tier 4: >33,000 gallons 2.32 2.39 2.58 2.79 2.98 3.19 3.41 3.65 3.91 4.18 4.47 4.79 Industrial Tier 1: >0 gallons 2.22 2.29 2.47 2.67 2.85 3.05 3.27 3.50 3.74 4.00 4.28 4.58 State connection charge (per year)9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 Trunk water charge - residential (per residential unit)1,182 1,182 1,182 1,229 1,278 1,330 1,383 1,438 1,496 1,555 1,618 1,682 Trunk water charge - non-residential (per acre)2,954 2,954 2,954 3,072 3,195 3,323 3,456 3,594 3,738 3,887 4,043 4,204 Water access charge - 1 1/4" line 1,266 1,266 2,010 2,090 2,174 2,261 2,351 2,445 2,543 2,645 2,751 2,861 Trunk Charge for Annexation Areas (per acre)- - - 13,414 13,951 14,509 15,089 15,692 16,320 16,973 17,652 18,358 Revenue by Fee Type (in Dollars) Volume billed: Residential, commercial, and irrigation minimum first 1000 gallons 416,960 429,240 463,408 510,267 562,236 610,221 669,887 723,267 790,147 845,626 922,342 986,906 Residential, commercial, and irrigation Tier 2: 1,001-10,000 gallons 898,340 960,486 1,037,121 1,140,690 1,254,741 1,360,736 1,491,666 1,609,739 1,756,626 1,879,945 2,048,422 2,191,812 Residential, commercial, and irrigation Tier 3: 10,001-33,000 gallons 190,800 163,500 176,250 190,350 203,675 217,932 233,187 249,510 266,976 285,664 305,661 327,057 Residential, commercial, and irrigation Tier 4: >33,000 gallons 69,600 59,750 64,500 69,660 74,536 79,754 85,336 91,310 97,702 104,541 111,859 119,689 Total Residential Volume Billed 1,575,700 1,612,976 1,741,279 1,910,968 2,095,188 2,268,643 2,480,076 2,673,826 2,911,451 3,115,776 3,388,284 3,625,463 Volume billed: Industrial Tier 1: >0 gallons 65,124 67,177 72,457 78,254 83,732 89,593 95,865 102,575 109,755 117,438 125,659 134,455 State connection charge (per year)8,500 8,500 8,500 9,346 10,658 11,309 12,505 12,932 13,933 13,943 14,886 14,886 Trunk water charge - residential (per residential unit)80,000 15,000 15,000 106,947 172,591 89,082 170,081 63,276 154,048 1,555 156,912 - Water access charge - 1 1/4" line 334,224 - - 181,865 293,492 151,485 289,224 107,601 261,959 2,645 266,830 - Trunk Charge for Annexation Areas (per acre)- - - 1,341,400 1,395,056 1,450,858 1,508,893 1,569,248 1,632,018 1,697,299 1,765,191 1,835,799 Total Revenue 2,063,548 1,703,653 1,837,236 3,628,780 4,050,717 4,060,971 4,556,643 4,529,458 5,083,164 4,948,657 5,717,761 5,610,603 64 SEWER FUND The Sewer Fund is a Proprietary Fund used to account for the costs of providing municipal sanitary sewer services, including for the wastewater treatment plant. The Fund is considered self- supporting in that the services rendered are financed through user charges. The Sewer Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues Revenue sources for the Sewer Fund are charges for services, access and trunk charges from development, and other sources include investment earnings, penalties, and interest on charges for services, among other sources. Future growth from development, which impacts the projection of operating and non-operating revenue for the Sewer Fund, is assumed to average 82 units per year between 2023-2032 for new residential and commercial customer units. The Plan is based on 3.0% annual fee increases for all fees and charges for sanitary sewer services, including to the trunk and access charges. The fee increases are projected as needed to cover both increasing operating costs and to pay for cost of maintenance and improvement of infrastructure for sanitary sewer service, including improvements to the wastewater treatment plant. The Plan includes a Trunk Charge for Annexation Areas on a per acre basis and assumes an average of 100 acres per year are platted and subject to the trunk charge. Based on projected revenues and expenses, the Sewer Fund will maintain adequate cash balance over the planning period. For purposes of the Plan, the revenue objective for the Sewer Fund focused on providing revenue sufficient to achieve an ending year-end cash balance to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes The Plan does not anticipate that bonding will be needed to finance planned capital improvements. The Fund is projected to have cash sufficient to meet both operating and capital needs. Expenses Expenses include operations, capital, interest expense on debt, and depreciation of capital assets. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. New capital is depreciated over a 40-year term in the Plan. Annual debt service payments on future bonds issued to finance improvements will be supported by net revenues of the Sewer Fund. There is existing debt outstanding for which revenues of the Sewer Fund are pledged. The General Obligation Series 2013B 65 Bonds ($1,120,000 payable as of 2023 year-end) and the General Obligation Revenue Note issued to the Public Facilities Authority, Series 2015A ($1,378,000 payable as of 2023 year-end). Transfers There are no recurring interfund transfers in the Water Fund. Balance Sheet Future estimated receivables and payable are projected to remain at historic amounts during the planning period. Capital assets offset by increase in accumulated depreciation are expected to increase with planned capital improvements. 66 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 46. Sewer Fund Ending Cash Balance by Purpose Cash available for future capital / unassigned Cash for 3-months operating reserve Cash for next year debt service Cash for next year planned capital 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending unrestricted Net Position as % of ExpensesMillionsChart 47. Sewer Fund Unrestricted Net Position Ending Unrestricted Net Position Ending Unrestricted Net Position as % of Expenses $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 48. Sewer Fund Revenues and Expenses Revenues Expenses 0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total Customer Units (ERU)Volume Billed (1,000 Gal)Chart 49. Sewer Fund Customers and Annual Volume Billed Sewer Volume Billed Total Customer Units 67 Table 20 City of Monticello Finance Plan Sewer Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Special assessments 39,124 28,298 - - 1,210 469 459 448 438 428 418 408 Charges for services 2,639,514 2,873,479 2,838,844 2,922,844 3,560,340 3,718,196 3,934,950 4,085,606 4,300,553 4,420,841 4,645,753 4,775,375 Investment earnings (39,020) (334,719) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Other revenues 1,922 1,662 4,656 4,656 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Transfer in 200,000 - - - - - - - - - - - Intergovernmental for capital 38,978 166,458 - - - - - - - - - - Connection / access charges 973,921 805,211 200,000 200,000 652,374 333,484 630,583 232,342 560,208 5,602 559,703 - Penalties and interest 45,009 50,776 50,500 50,500 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Trunk charges 257,766 249,385 - - 785,870 687,511 811,566 685,626 821,802 640,597 859,377 677,469 Total 4,157,214 3,840,550 3,119,000 3,203,000 5,079,794 4,819,660 5,457,559 5,084,022 5,763,001 5,147,468 6,145,251 5,533,252 Expenses Depreciation 1,202,802 1,199,870 1,224,245 1,241,745 1,374,100 1,400,526 1,526,002 1,542,503 1,558,211 1,636,754 1,656,660 1,798,325 Interest payments 64,371 45,451 55,491 49,023 42,100 34,491 26,562 18,011 8,770 7,558 6,335 5,092 Operating expense before depreciation 1,777,133 1,980,086 2,336,509 2,288,977 2,357,646 2,428,376 2,501,227 2,576,264 2,653,552 2,733,158 2,815,153 2,899,608 Total 3,044,306 3,225,407 3,616,245 3,579,745 3,773,846 3,863,393 4,053,790 4,136,778 4,220,532 4,377,470 4,478,148 4,703,024 Change in Net Position 1,112,908 615,143 (497,245) (376,745) 1,305,948 956,267 1,403,768 947,245 1,542,468 769,998 1,667,103 830,227 Ending net position 24,183,374 24,798,517 24,301,272 23,924,527 25,230,474 26,186,741 27,590,509 28,537,754 30,080,222 30,850,220 32,517,323 33,347,550 Assets Cash and investments 8,438,613 10,127,111 9,229,739 9,111,555 6,206,760 7,203,175 4,804,578 6,313,954 8,704,965 7,887,638 10,298,405 7,142,620 Due from other governments 22,602 - - - - - - - - - - - All other receivables and prepaid items 532,679 507,727 475,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 Special assessments receivable / deferred 448,783 53,251 265,655 230,839 197,486 164,826 132,167 99,507 66,848 34,189 33,934 33,679 Capital assets 51,754,815 52,129,545 53,104,545 53,804,545 59,098,741 60,155,778 65,174,805 65,834,836 66,463,163 69,604,902 70,401,152 76,067,744 Accumulated depreciation (33,630,550) (34,830,422) (36,054,667) (37,296,412) (38,670,512) (40,071,038) (41,597,040) (43,139,543) (44,697,754) (46,334,508) (47,991,168) (49,789,493) Deferred outflows of resources 89,608 97,878 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Total Assets and Deferred Outflows 27,656,550 28,085,090 27,035,272 26,340,527 27,322,474 27,942,741 29,004,509 29,598,754 31,027,222 31,682,220 33,232,323 33,944,550 Liabilities All other liabilities 220,601 467,016 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 Deferred inflows of resources 121,022 9,557 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 Bonds payable 3,116,000 2,810,000 2,498,000 2,180,000 1,856,000 1,520,000 1,178,000 825,000 711,000 596,000 479,000 361,000 Unamortized bond prem/disc 15,553 - - - - - - - - - - - Total Liabilities and Deferred Inflows 3,473,176 3,286,573 2,734,000 2,416,000 2,092,000 1,756,000 1,414,000 1,061,000 947,000 832,000 715,000 597,000 Total Liabilities, Deferred Inflows, and Net Position 27,656,550 28,085,090 27,035,272 26,340,527 27,322,474 27,942,741 29,004,509 29,598,754 31,027,222 31,682,220 33,232,323 33,944,550 68 Table 21 City of Monticello Finance Plan - Change in Ending Cash Balance Sewer Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance and Other Expense 2,336,509 2,288,977 2,357,646 2,428,376 2,501,227 2,576,264 2,653,552 2,733,158 2,815,153 2,899,608 Capital Acquisition / Outlay 975,000 700,000 5,294,196 1,057,037 5,019,027 660,031 628,327 3,141,739 796,250 5,666,592 Interfund Transfers Out - - - - - - - - - - Debt Service (includes transfers for debt)367,491 367,023 366,100 370,491 368,562 371,011 122,770 122,558 123,335 123,092 Total Use of Cash 3,679,000 3,356,000 8,017,942 3,855,904 7,888,815 3,607,306 3,404,648 5,997,455 3,734,738 8,689,291 Source of Cash Revenues 3,119,000 3,203,000 5,079,794 4,819,660 5,457,559 5,084,022 5,763,001 5,147,468 6,145,251 5,533,252 Bond Proceeds - - - - - - - - - - Interfund Transfers In - - - - - - - - - - Total Source of Cash 3,119,000 3,203,000 5,079,794 4,819,660 5,457,559 5,084,022 5,763,001 5,147,468 6,145,251 5,533,252 Net Change in Other Assets and Liabilities (337,372) 34,816 33,354 32,659 32,659 32,659 32,659 32,659 255 255 Change in Cash Balance (897,372) (118,184) (2,904,795) 996,415 (2,398,598) 1,509,376 2,391,012 (817,328) 2,410,767 (3,155,785) Ending Cash 9,229,739 9,111,555 6,206,760 7,203,175 4,804,578 6,313,954 8,704,965 7,887,638 10,298,405 7,142,620 Ending Cash by Purpose Cash for next year planned capital 700,000 5,294,196 1,057,037 5,019,027 660,031 628,327 3,141,739 796,250 5,666,592 5,686,589 Cash for next year debt service 367,023 366,100 370,491 368,562 371,011 122,770 122,558 123,335 123,092 122,837 Cash for 3-months operating reserve 572,244 589,412 607,094 625,307 644,066 663,388 683,290 703,788 724,902 746,649 Cash available for future capital / unassigned 7,590,472 2,861,847 4,172,137 1,190,280 3,129,470 4,899,469 4,757,379 6,264,264 3,783,819 586,545 Ending Cash 9,229,739 9,111,555 6,206,760 7,203,175 4,804,578 6,313,954 8,704,965 7,887,638 10,298,405 7,142,620 69 Table 22 City of Monticello Finance Plan - Customers and Volume Billed, Rates, and Revenue from Charges Sewer Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Customers and Usage Residential and commercial customers 4,433 4,433 4,433 4,520 4,655 4,722 4,845 4,889 4,992 4,993 5,090 5,090 5,156 Volume billed: Residential and commercial Tier 1: First 1000 gallons 53,196 53,196 53,196 54,240 55,860 56,664 58,140 58,668 59,904 59,916 61,080 61,080 61,872 Residential and commercial Tier 2: 1,001-10,000 gallons 276,446 276,446 276,446 285,842 300,422 307,658 320,942 325,694 336,818 336,926 347,402 347,402 354,530 Total Residential Volume Billed 329,642 329,642 329,642 340,082 356,282 364,322 379,082 384,362 396,722 396,842 408,482 408,482 416,402 Industrial customers 1 1 1 1 1 1 1 1 1 1 1 1 1 Volume billed: Industrial all usage 43,027 43,027 43,027 43,027 43,027 43,027 43,027 43,027 43,027 43,027 43,027 43,027 43,027 Industrial BOD5 per lb 449,243 449,243 449,243 449,243 449,243 449,243 449,243 449,243 449,243 449,243 449,243 449,243 449,243 Industrial TSS per lb 219,528 219,528 219,528 219,528 219,528 219,528 219,528 219,528 219,528 219,528 219,528 219,528 219,528 Total Customers 4,434 4,434 4,434 4,521 4,656 4,723 4,846 4,890 4,993 4,994 5,091 5,091 5,157 Total Volume Billed 372,669 372,669 372,669 383,109 399,309 407,349 422,109 427,389 439,749 439,869 451,509 451,509 459,429 Sewer access charge per unit 264 2 2 87 135 67 123 44 103 1 97 - 66 Trunk sewer charge residential per unit 50 9 9 87 135 67 123 44 103 1 97 - 66 City Sewer Manual Charges (Units)2 2 2 2 2 2 2 2 2 2 2 2 2 Trunk Charge for Annexation Areas (per acre)- - - 100 100 100 100 100 100 100 100 100 100 Customer Fees (in dollars) Residential and commercial minimum first 1000 gallons 10.10 10.40 10.61 10.93 11.26 11.59 11.94 12.30 12.67 13.05 13.44 13.84 14.26 Residential and commercial Tier 2: 1,001-10,000 gallons 6.19 6.38 6.51 6.71 6.91 7.11 7.33 7.55 7.77 8.01 8.25 8.49 8.75 Industrial all usage 3.840 3.960 4.040 4.161 4.286 4.415 4.547 4.683 4.824 4.969 5.118 5.271 5.429 Industrial BOD5 per lb 0.415 0.427 0.436 0.449 0.463 0.476 0.491 0.505 0.521 0.536 0.552 0.569 0.586 Industrial TSS per lb 0.570 0.587 0.599 0.617 0.635 0.655 0.674 0.694 0.715 0.737 0.759 0.782 0.805 Industrial Testing - actual cost plus % markup 10.0% 10.0% 10.0% 10.3% 10.6% 10.9%11.3% 11.6% 11.9% 12.3% 12.7% 13.0% 13.4% Sewer discharge - percent of sewer bill for all customers 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Sewer access charge per unit 4,423 4,423 4,555 4,692 4,832 4,977 5,127 5,280 5,439 5,602 5,770 5,943 6,122 Trunk sewer charge residential per unit 1,594 1,594 1,641 1,690 1,741 1,793 1,847 1,902 1,959 2,018 2,079 2,141 2,205 Trunk sewer charge non-residential per acre 3,995 3,995 4,115 4,238 4,366 4,497 4,631 4,770 4,914 5,061 5,213 5,369 5,530 Trunk sewer charge - Meadow Oaks Lift Station 2,823 2,823 - - - - - - - - - - - City Sewer Manual Charges (Units)160,517 162,500 162,500 162,500 162,500 162,500 162,500 162,500 162,500 162,500 162,500 162,500 162,500 Trunk Charge for Annexation Areas (per acre)- - - 5,348 5,508 5,674 5,844 6,019 6,200 6,386 6,577 6,775 6,978 Revenue by Fee Type (in Dollars) Volume billed: Residential and commercial minimum first 1000 gallons 537,280 553,238 564,410 592,751 628,768 656,953 694,287 721,610 758,917 781,842 820,941 845,570 882,230 Residential and commercial Tier 1: First 1000 gallons - - - - - - - - - - - - - Residential and commercial Tier 2: 1,001-10,000 gallons 1,711,201 1,763,725 1,799,663 1,916,656 2,074,852 2,188,572 2,351,562 2,457,972 2,618,181 2,697,591 2,864,911 2,950,858 3,101,746 Total Residential Volume Billed 2,248,480 2,316,964 2,364,073 2,509,407 2,703,621 2,845,525 3,045,849 3,179,582 3,377,098 3,479,432 3,685,852 3,796,428 3,983,976 Volume billed: Industrial all usage 165,224 170,387 173,829 179,044 184,415 189,948 195,646 201,516 207,561 213,788 220,201 226,808 233,612 Industrial BOD5 per lb 186,436 191,827 195,870 201,746 207,798 214,032 220,453 227,067 233,879 240,895 248,122 255,566 263,233 Industrial TSS per lb 125,131 128,863 131,497 135,442 139,505 143,691 148,001 152,441 157,015 161,725 166,577 171,574 176,721 Sewer access charge per unit 1,167,672 8,500 8,754 408,174 652,374 333,484 630,583 232,342 560,208 5,602 559,703 - 404,022 Trunk sewer charge residential per unit 80,000 15,000 15,442 147,050 235,026 120,142 227,176 83,704 201,822 2,018 201,641 - 145,554 City Sewer Manual Charges (Units)321,034 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 Trunk Charge for Annexation Areas (per acre)- - - 534,800 550,844 567,369 584,390 601,922 619,980 638,579 657,737 677,469 697,793 Total Revenue 4,293,977 3,156,540 3,214,465 4,440,663 4,998,584 4,739,191 5,377,100 5,003,574 5,682,562 5,067,040 6,064,833 5,452,844 6,229,910 Total Revenues by Category (in Dollars) Charges for services 3,046,305 3,133,040 3,190,269 3,350,640 3,560,340 3,718,196 3,934,950 4,085,606 4,300,553 4,420,841 4,645,753 4,775,375 4,982,542 Connection / access charges 1,167,672 8,500 8,754 408,174 652,374 333,484 630,583 232,342 560,208 5,602 559,703 - 404,022 Trunk charges 80,000 15,000 15,442 681,850 785,870 687,511 811,566 685,626 821,802 640,597 859,377 677,469 843,347 Total Revenue 4,293,977 3,156,540 3,214,465 4,440,663 4,998,584 4,739,191 5,377,100 5,003,574 5,682,562 5,067,040 6,064,833 5,452,844 6,229,910 70 STORMWATER FUND The Stormwater Fund is a Proprietary Fund for the accounting for costs of providing a municipal stormwater system. The Fund is supposed to be self-supporting in that the services rendered are financed through user charges. The Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues Revenue sources for the Stormwater Fund are charges for services, trunk charges from development, and other sources including investment earnings, penalties, and interest on charges for services, among other sources. The Plan is based on $0.50 increase annually in the monthly fee for storm sewer services. Trunk area charges are planned to increase by 3.0% annually to pay for infrastructure of the system. The Plan assumes an average of 100 acres per year are platted, and after adjusting for ponds and wetland areas not subject to the stormwater trunk charge, the net acres projected to be subject to the trunk charge is 50 acres per year. Based on projected revenues and expenses, the Fund is not projected to maintain adequate cash balance over the planning period. For purposes of the Plan, the revenue objective for the Stormwater Fund is focused on providing revenue sufficient to achieve ending year-end cash balance to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes The Plan does not include issuance of bonds to finance capital improvements. This may need to be considered if projects proceed based on the timing and amounts included in the Plan without other revenue sources to pay for the projects. Expenses Expenses include operations, capital, interest expense on debt, and depreciation of capital assets. The Plan anticipates the addition of a position (1.0 FTE) in 2026 and a second position (1.0 FTE) in 2027. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. New capital is depreciated over a 40-year term in the Plan. There is no existing debt outstanding for which revenues of the Stormwater Fund are pledged. Transfers There are no interfund transfers for the Stormwater Fund. Balance Sheet The Stormwater Fund is presently shown to not have sufficient revenues available to pay for planned capital improvements based on the proposed timing and amount for projects. The City will need to consider its options to address the projected shortfall. Accounts receivable and payable are projected to remain at historic amounts during the planning period. 71 -$2.0 -$1.5 -$1.0 -$0.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 50. Stormwater Fund Ending Cash Balance by Purpose Cash available for future capital / unassigned Cash for 3-months operating reserve Cash for next year debt service Cash for next year planned capital -150% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% ($1.0) ($0.5) $0.0 $0.5 $1.0 $1.5 $2.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending unrestricted Net Position as % of ExpensesMillionsChart 51. Stormwater Fund Unrestricted Net Position Ending Unrestricted Net Position Ending Unrestricted Net Position as % of Expenses $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 52. Stormwater Fund Revenues and Expenses Revenues Expenses - 2,000 4,000 6,000 8,000 10,000 12,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 53. Stormwater Fund Equivalent Residential Customer Units Billed Total Residential Equivalent Customer Units 72 Table 23 City of Monticello Finance Plan Stormwater Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Special assessments 21,861 7,821 - - - - - - - - - - Other intergovernmental - - 300,000 1,840,000 - - - - - - - - Charges for services 356,747 522,851 600,000 600,000 600,402 660,312 726,024 785,568 851,580 908,448 975,834 1,033,236 Investment earnings (7,724) (54,412) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Other revenues - 6,295 - - - - - - - - - - Intergovernmental for capital 39,132 54,917 - - - - - - - - - - Connection / access charges - - - - - - - - - - - - Trunk charges 328,530 172,702 60,000 60,000 326,460 336,254 346,342 356,732 367,434 378,457 389,810 401,505 Total 738,546 710,174 962,000 2,502,000 928,862 998,566 1,074,366 1,144,300 1,221,014 1,288,905 1,367,644 1,436,741 Expenses FTE Increases / Current Expenses - - - - - 49,500 152,985 157,575 162,302 167,171 172,186 177,352 Depreciation 510,323 467,342 477,842 528,217 557,717 594,967 610,192 610,192 617,692 617,692 617,692 617,692 Operating expense before depreciation 222,528 330,653 566,000 584,000 601,520 619,566 638,153 657,297 677,016 697,327 718,246 739,794 Total 732,851 797,995 1,043,842 1,112,217 1,159,237 1,264,033 1,401,330 1,425,064 1,457,010 1,482,189 1,508,124 1,534,837 Change in Net Position 5,695 (87,821) (81,842) 1,389,783 (230,375) (265,467) (326,964) (280,764) (235,996) (193,285) (140,480) (98,096) Ending net position 6,440,836 6,353,015 6,271,173 7,660,956 7,430,581 7,165,115 6,838,151 6,557,387 6,321,391 6,128,106 5,987,626 5,889,530 Assets Cash and investments 1,407,666 1,627,949 1,529,746 1,450,417 610,754 (536,752) (849,530) (507,108) (412,418) 24,984 502,196 1,021,792 Due from other governments 39,132 - - - - - - - - - - - All other receivables and prepaid items 41,158 38,910 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Special assessments receivable / deferred 137,993 113,307 95,636 77,965 64,971 51,976 38,982 25,988 12,994 0 0 0 Capital assets 19,613,831 19,905,664 20,325,664 22,340,664 23,520,664 25,010,664 25,619,664 25,619,664 25,919,664 25,919,664 25,919,664 25,919,664 Accumulated depreciation (14,763,001) (15,230,343) (15,708,185) (16,236,402) (16,794,119) (17,389,086) (17,999,278) (18,609,470) (19,227,162) (19,844,854) (20,462,546) (21,080,238) Deferred outflows of resources 490 38,016 115 116 117 118 119 120 121 122 123 124 Total Assets and Deferred Outflows 6,477,269 6,493,503 6,292,976 7,682,760 7,452,386 7,186,921 6,859,958 6,579,195 6,343,200 6,149,916 6,009,437 5,911,342 Liabilities All other liabilities 33,455 136,951 17,740 17,740 17,740 17,740 17,740 17,740 17,740 17,740 17,740 17,740 Deferred inflows of resources 2,978 3,537 4,063 4,064 4,065 4,066 4,067 4,068 4,069 4,070 4,071 4,072 Total Liabilities and Deferred Inflows 36,433 140,488 21,803 21,804 21,805 21,806 21,807 21,808 21,809 21,810 21,811 21,812 Total Liabilities, Deferred Inflows, and Net Posit 6,477,269 6,493,503 6,292,976 7,682,760 7,452,386 7,186,921 6,859,958 6,579,195 6,343,200 6,149,916 6,009,437 5,911,342 73 Table 24 City of Monticello Finance Plan - Change in Ending Cash Balance Stormwater Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance and Other Expense 566,000 584,000 601,520 669,066 791,138 814,872 839,318 864,497 890,432 917,145 Capital Acquisition / Outlay 420,000 2,015,000 1,180,000 1,490,000 609,000 - 300,000 - - - Interfund Transfers Out - - - - - - - - - - Debt Service (includes transfers for debt)- - - - - - - - - - Total Use of Cash 986,000 2,599,000 1,781,520 2,159,066 1,400,138 814,872 1,139,318 864,497 890,432 917,145 Source of Cash Revenues 962,000 2,502,000 928,862 998,566 1,074,366 1,144,300 1,221,014 1,288,905 1,367,644 1,436,741 Bond Proceeds - - - - - - - - - - Interfund Transfers In - - - - - - - - - - Total Source of Cash 962,000 2,502,000 928,862 998,566 1,074,366 1,144,300 1,221,014 1,288,905 1,367,644 1,436,741 Net Change in Other Assets and Liabilities (74,203) 17,671 12,994 12,994 12,994 12,994 12,994 12,994 - - Change in Cash Balance (98,203) (79,329) (839,664) (1,147,506) (312,778) 342,422 94,690 437,402 477,212 519,596 Ending Cash 1,529,746 1,450,417 610,754 (536,752) (849,530) (507,108) (412,418) 24,984 502,196 1,021,792 Ending Cash by Purpose Cash for next year planned capital 2,015,000 1,180,000 1,490,000 609,000 - 300,000 - - - - Cash for next year debt service - - - - - - - - - - Cash for 3-months operating reserve 146,000 150,380 167,266 197,784 203,718 209,829 216,124 222,608 229,286 236,165 Cash available for future capital / unassigned (631,254) 120,037 (1,046,513) (1,343,536) (1,053,248) (1,016,937) (628,542) (197,624) 272,910 785,627 Ending Cash 1,529,746 1,450,417 610,754 (536,752) (849,530) (507,108) (412,418) 24,984 502,196 1,021,792 74 Table 25 City of Monticello Finance Plan - Customers and Volume Billed, Rates, and Revenue from Charges Stormwater Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Customers Stormwater Monthly Basic Charge - Residential 4,115 4,115 4,115 4,202 4,337 4,404 4,527 4,571 4,674 4,675 4,772 4,772 Stormwater Monthly Basic Charge - Commercial 4,739 4,739 4,739 4,760 4,760 4,767 4,781 4,781 4,788 4,788 4,795 4,795 Stormwater Trunk (net acre)77 14 14 70 70 70 70 70 70 70 70 70 Storm Sewer Trunk Alternate Ponding Area - Residential (per acre)- - - - - - - - - - - - Storm Sewer Trunk Alternate Ponding Area - Commercial (per acre)- - - - - - - - - - - - Storm Sewer Trunk Alternate Ponding Area - Industrial (per acre)- - - - - - - - - - - - Customer Fees (in dollars) Stormwater Monthly Basic Charge - Residential 3.00 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 Stormwater Monthly Basic Charge - Commercial 3.00 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 Stormwater Trunk (net acre)4,268 4,268 4,396 4,528 4,664 4,804 4,948 5,096 5,249 5,407 5,569 5,736 Storm Sewer Trunk Alternate Ponding Area - Residential (per acre)4,374 4,374 4,505 4,640 4,779 4,923 5,070 5,223 5,379 5,541 5,707 5,878 Storm Sewer Trunk Alternate Ponding Area - Commercial (per acre)8,767 8,767 9,030 9,301 9,580 9,867 10,163 10,468 10,782 11,106 11,439 11,782 Storm Sewer Trunk Alternate Ponding Area - Industrial (per acre)10,247 10,247 10,554 10,871 11,197 11,533 11,879 12,235 12,602 12,980 13,369 13,771 Revenue by Fee Type (in Dollars) Stormwater Monthly Basic Charge - Residential 148,140 197,520 222,210 252,120 286,242 317,088 353,106 383,964 420,660 448,800 486,744 515,376 Stormwater Monthly Basic Charge - Commercial 170,604 227,472 255,906 285,600 314,160 343,224 372,918 401,604 430,920 459,648 489,090 517,860 Stormwater Trunk (net acre)328,530 60,000 61,799 316,952 326,460 336,254 346,342 356,732 367,434 378,457 389,810 401,505 Storm Sewer Trunk Alternate Ponding Area - Residential (per acre)- - - - - - - - - - - - Storm Sewer Trunk Alternate Ponding Area - Commercial (per acre)- - - - - - - - - - - - Storm Sewer Trunk Alternate Ponding Area - Industrial (per acre)- - - - - - - - - - - - Total Revenue 647,274 484,992 539,915 854,672 926,862 996,566 1,072,366 1,142,300 1,219,014 1,286,905 1,365,644 1,434,741 Total Revenues by Category (in Dollars) Charges for services 318,744 424,992 478,116 537,720 600,402 660,312 726,024 785,568 851,580 908,448 975,834 1,033,236 Connection / access charges Trunk charges 328,530 60,000 61,799 316,952 326,460 336,254 346,342 356,732 367,434 378,457 389,810 401,505 Total Revenue 647,274 484,992 539,915 854,672 926,862 996,566 1,072,366 1,142,300 1,219,014 1,286,905 1,365,644 1,434,741 75 LIQUOR FUND The Liquor Fund is a Proprietary Fund used for the accounting for costs of the municipal liquor operations. The Fund is supposed to be self-supporting in that the services rendered are financed through sales. The Liquor Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues The major revenue source for the Liquor Fund comes from sale of goods net of costs of goods sold. Other revenue is from investment earnings. Based on projected revenues and expenses, the Liquor Fund is projected to maintain adequate cash balance over the planning period. For purposes of the Plan, the revenue objective for the Liquor Fund is focused on providing revenue sufficient to achieve ending year-end cash balance to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes The Plan does not anticipate proceeds from the issuance of bonds to finance improvements capital improvements. The Fund is projected to have cash sufficient to pay for capital improvements without issuance of debt. Any major capital projects for the Liquor Fund may require issuance of debt, this includes any major renovation to the existing store or a new store. Expenses Expenses include operations, capital, and depreciation of capital assets. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. There is no existing debt outstanding for which revenues of the Liquor Store Fund are pledged. Transfers There are no recurring interfund transfers in the Plan. The City will consider options for the use of available cash from the Liquor Fund to support other city operations. For example, there are several funds in the Plan that are projected to have expenditures in excess of revenues resulting in future projected negative cash balances. The City may determine to address the shortfalls in part through operating transfers from the Liquor Fund. Balance Sheet Future estimated receivables and payable are projected to remain at historic amounts during the planning period. There are no planned bonds payable projected. 76 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 54. Liquor Fund Ending Cash Balance by Purpose Cash available for future capital / unassigned Cash for 3-months operating reserve Cash for next year debt service Cash for next year planned capital 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending unrestricted Net Position as % of ExpensesMillionsChart 55. Liquor Fund Unrestricted Net Position Ending Unrestricted Net Position Ending Unrestricted Net Position as % of Expenses $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 56. Liquor Fund Revenues and Expenses Revenues Expenses* *Revenues are reported as net of cost of goods sold. Cost of goods sold is not included as part of the Expenses. 77 Table 26 City of Monticello Finance Plan Liquor Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings (9,622) (82,243) 12,306 12,151 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Other revenues 1,577 5,685 - - - - - - - - - - Net sales for enterprise fund 7,104,357 7,168,374 7,357,694 7,504,849 7,729,994 7,961,894 8,200,751 8,446,774 8,700,177 8,961,182 9,230,018 9,506,918 Cost of goods sold for enterprise fund (5,200,541) (5,256,029) (5,407,500) (5,515,651) (5,681,121) (5,851,554) (6,027,101) (6,207,914) (6,394,151) (6,585,976) (6,783,555) (6,987,062) Total 1,895,771 1,835,787 1,962,500 2,001,349 2,060,874 2,122,340 2,185,650 2,250,860 2,318,026 2,387,206 2,458,463 2,531,857 Expenses Depreciation 35,202 20,923 24,173 24,173 27,298 28,086 28,874 29,662 30,450 31,238 32,026 32,814 Transfer out - - 2,250,000 1,000,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 Operating expense before depreciation 877,971 1,037,104 1,222,500 1,231,349 1,268,289 1,306,338 1,345,528 1,385,894 1,427,471 1,470,295 1,514,404 1,559,836 Total 913,173 1,058,027 3,496,673 2,255,522 2,045,587 2,084,424 2,124,402 2,165,556 2,207,921 2,251,533 2,296,430 2,342,650 Change in Net Position 982,598 777,760 (1,534,173) (254,173) 15,286 37,916 61,248 85,304 110,105 135,673 162,033 189,206 Ending net position 1,930,339 2,708,099 1,173,926 919,753 935,039 972,955 1,034,204 1,119,507 1,229,612 1,365,285 1,527,318 1,716,524 Assets Cash and investments 1,943,412 2,809,741 932,602 702,602 620,186 654,688 713,311 796,776 905,831 1,041,242 1,203,801 1,394,321 All other receivables and prepaid items 9,300 8,118 10,835 10,835 10,835 10,835 10,835 10,835 10,835 10,835 10,835 10,835 Land held for resale / inventory 423,796 530,707 450,000 450,000 450,000 450,000 450,000 450,000 450,000 450,000 450,000 450,000 Capital assets 988,459 1,007,269 1,137,269 1,137,269 1,262,269 1,293,769 1,325,269 1,356,769 1,388,269 1,419,769 1,451,269 1,482,769 Accumulated depreciation (910,002) (930,926) (955,099) (979,272) (1,006,570) (1,034,656) (1,063,530) (1,093,192) (1,123,642) (1,154,880) (1,186,906) (1,219,720) Deferred outflows of resources 196,409 164,587 196,409 196,409 196,409 196,409 196,409 196,409 196,409 196,409 196,409 196,409 Total Assets and Deferred Outflows 2,651,374 3,589,496 1,772,016 1,517,843 1,533,129 1,571,045 1,632,294 1,717,597 1,827,702 1,963,375 2,125,408 2,314,614 Liabilities All other liabilities 460,796 867,111 570,647 570,647 570,647 570,647 570,647 570,647 570,647 570,647 570,647 570,647 Deferred inflows of resources 260,239 14,286 27,443 27,443 27,443 27,443 27,443 27,443 27,443 27,443 27,443 27,443 Total Liabilities and Deferred Inflows 721,035 881,397 598,090 598,090 598,090 598,090 598,090 598,090 598,090 598,090 598,090 598,090 Total Liabilities, Deferred Inflows, and Net Posit 2,651,374 3,589,496 1,772,016 1,517,843 1,533,129 1,571,045 1,632,294 1,717,597 1,827,702 1,963,375 2,125,408 2,314,614 78 Table 27 City of Monticello Finance Plan - Change in Ending Cash Balance Liquor Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance and Other Expense 1,222,500 1,231,349 1,268,289 1,306,338 1,345,528 1,385,894 1,427,471 1,470,295 1,514,404 1,559,836 Capital Acquisition / Outlay 130,000 - 125,000 31,500 31,500 31,500 31,500 31,500 31,500 31,500 Interfund Transfers Out 2,250,000 1,000,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 Debt Service (includes transfers for debt)- - - - - - - - - - Total Use of Cash 3,602,500 2,231,349 2,143,289 2,087,838 2,127,028 2,167,394 2,208,971 2,251,795 2,295,904 2,341,336 Source of Cash Revenues 1,962,500 2,001,349 2,060,874 2,122,340 2,185,650 2,250,860 2,318,026 2,387,206 2,458,463 2,531,857 Total Source of Cash 1,962,500 2,001,349 2,060,874 2,122,340 2,185,650 2,250,860 2,318,026 2,387,206 2,458,463 2,531,857 Net Change in Other Assets and Liabilities (237,139) - - - - - - - - - Change in Cash Balance (1,877,139) (230,000) (82,416) 34,502 58,622 83,466 109,055 135,411 162,559 190,520 Ending Cash 932,602 702,602 620,186 654,688 713,311 796,776 905,831 1,041,242 1,203,801 1,394,321 Ending Cash by Purpose Cash for next year planned capital - 125,000 31,500 31,500 31,500 31,500 31,500 31,500 31,500 50,000 Cash for next year debt service - - - - - - - - - - Cash for 3-months operating reserve 307,837 317,072 326,585 336,382 346,474 356,868 367,574 378,601 389,959 401,658 Cash available for future capital / unassigned 624,765 260,530 262,102 286,806 335,337 408,409 506,757 631,141 782,342 942,664 Ending Cash 932,602 702,602 620,186 654,688 713,311 796,776 905,831 1,041,242 1,203,801 1,394,321 79 FIBER OPTICS FUND The Fiber Optics Fund is a Proprietary Fund used for the accounting for costs of the municipal fiber optics system. The Fund is supposed to be self-supporting in that the services rendered are financed through user charges. The Fiber Optics Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. For the Fiber Optics Fund there are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues The major revenue sources for the Fiber Optics Fund come from charges for services. Other revenues include investment earnings, other intergovernmental, and other nonrecurring revenues. Based on projected revenues and expenses, the Fiber Optics Fund is projected to maintain adequate cash balance over the long-term planning period. For purposes of the Plan, the revenue objective for the Fiber Optics Fund is focused on providing revenue sufficient to achieve ending year-end cash balance to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes The Plan does not anticipate proceeds from the issuance of bonds to finance improvements capital improvements. The Fiber Optics Fund is projected to have cash sufficient to pay for capital improvements. Capital improvements are only projected for continued expansion to new neighborhoods; costs for upgrades or large replacements to the system are not anticipated in the planning period. Expenses Expenses include operations and depreciation of capital assets. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. There is no existing debt outstanding for which revenues of the Fiber Optics Fund are pledged. Transfers There are no recurring interfund transfers. Balance Sheet Future estimated receivables and payable are projected to remain at historic amounts during the planning period. There are no planned capital improvements included in the Plan and no issuance of future bonds. 80 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 57. Fiber Optics Fund Ending Cash by Purpose Cash available for future capital / unassigned Cash for 3-months operating reserve Cash for next year debt service Cash for next year planned capital 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending unrestricted Net Position as % of ExpensesMillionsChart 58. Fiber Optics Fund Unrestricted Net Position Ending Unrestricted Net Position Ending Unrestricted Net Position as % of Expenses $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 59. Fiber Optics Fund Revenues and Expenses Revenues Expenses *Revenues are reported as net of cost of goods sold. Cost of goods sold is not included as part fo the Expenses. 81 Table 28 City of Monticello Finance Plan Fiber Optics Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Franchise taxes 53,942 53,000 - - - - - - - - - - Other intergovernmental - - - - - - - - - - - - Charges for services 1,945,217 1,978,590 1,869,708 2,027,500 2,068,050 2,109,411 2,151,599 2,194,631 2,238,524 2,283,294 2,328,960 2,375,539 Fines and forfeitures - - - - - - - - - - - - Investment earnings (4,496) (37,000) 9,512 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Other revenues 2,521 216,502 780 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Total 1,997,184 2,211,092 1,880,000 2,040,000 2,080,550 2,121,911 2,164,099 2,207,131 2,251,024 2,295,794 2,341,460 2,388,039 Expenses Depreciation 378,578 380,890 385,890 390,890 396,150 401,410 406,670 411,930 417,190 422,450 427,710 432,970 Operating expense before depreciation 1,700,697 1,621,188 1,750,000 1,683,000 1,733,490 1,785,495 1,839,060 1,894,231 1,951,058 2,009,590 2,069,878 2,131,974 Total 2,079,275 2,002,078 2,135,890 2,073,890 2,129,640 2,186,905 2,245,730 2,306,161 2,368,248 2,432,040 2,497,588 2,564,944 Change in Net Position (82,091) 209,014 (255,890) (33,890) (49,090) (64,994) (81,630) (99,030) (117,224) (136,246) (156,128) (176,905) Ending net position 12,267,574 12,476,588 12,220,698 12,186,808 12,137,718 12,072,724 11,991,094 11,892,064 11,774,839 11,638,594 11,482,466 11,305,562 Assets Cash and investments 935,050 1,228,402 1,172,545 1,329,545 1,466,207 1,592,225 1,706,867 1,809,369 1,898,936 1,974,743 2,035,927 2,081,595 Due from other governments 2,942 53,000 - - - - - - - - - - All other receivables and prepaid items 140,498 138,662 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 Capital assets 15,466,302 15,771,862 15,971,862 16,171,862 16,382,260 16,592,658 16,803,056 17,013,454 17,223,852 17,434,250 17,644,648 17,855,046 Accumulated depreciation (4,096,930) (4,477,819) (4,863,709) (5,254,599) (5,650,749) (6,052,159) (6,458,829) (6,870,759) (7,287,949) (7,710,399) (8,138,109) (8,571,079) Deferred outflows of resources - - - - - - - - - - - - Total Assets and Deferred Outflows 12,447,862 12,714,107 12,420,698 12,386,808 12,337,718 12,272,724 12,191,094 12,092,064 11,974,839 11,838,594 11,682,466 11,505,562 Liabilities All other liabilities 180,288 237,519 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Deferred inflows of resources - - - - - - - - - - - - Total Liabilities and Deferred Inflows 180,288 237,519 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Total Liabilities, Deferred Inflows, and Net Po 12,447,862 12,714,107 12,420,698 12,386,808 12,337,718 12,272,724 12,191,094 12,092,064 11,974,839 11,838,594 11,682,466 11,505,562 82 Table 29 City of Monticello Finance Plan - Change in Ending Cash Balance Fiber Optics Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance and Other Expense 1,750,000 1,683,000 1,733,490 1,785,495 1,839,060 1,894,231 1,951,058 2,009,590 2,069,878 2,131,974 Capital Acquisition / Outlay 200,000 200,000 210,398 210,398 210,398 210,398 210,398 210,398 210,398 210,398 Interfund Transfers Out - - - - - - - - - - Debt Service (includes transfers for debt)- - - - - - - - - - Total Use of Cash 1,950,000 1,883,000 1,943,888 1,995,893 2,049,458 2,104,629 2,161,456 2,219,988 2,280,276 2,342,372 Source of Cash Revenues 1,880,000 2,040,000 2,080,550 2,121,911 2,164,099 2,207,131 2,251,024 2,295,794 2,341,460 2,388,039 Bond Proceeds - - - - - - - - - - Interfund Transfers In - - - - - - - - - - Total Source of Cash 1,880,000 2,040,000 2,080,550 2,121,911 2,164,099 2,207,131 2,251,024 2,295,794 2,341,460 2,388,039 Net Change in Other Assets and Liabilities 14,143 - - - - - - - - - Change in Cash Balance (55,857) 157,000 136,662 126,018 114,642 102,502 89,568 75,806 61,184 45,667 Ending Cash 1,172,545 1,329,545 1,466,207 1,592,225 1,706,867 1,809,369 1,898,936 1,974,743 2,035,927 2,081,595 Ending Cash by Purpose Cash for next year planned capital 200,000 210,398 210,398 210,398 210,398 210,398 210,398 210,398 210,398 50,000 Cash for next year debt service - - - - - - - - - - Cash for 3-months operating reserve 420,750 433,373 446,374 459,765 473,558 487,765 502,398 517,469 532,994 548,983 Cash available for future capital / unassigned 551,795 685,775 809,435 922,062 1,022,911 1,111,206 1,186,141 1,246,875 1,292,536 1,482,611 Ending Cash 1,172,545 1,329,545 1,466,207 1,592,225 1,706,867 1,809,369 1,898,936 1,974,743 2,035,927 2,081,595 83 DEPUTY REGISTRAR FUND The Deputy Registrar Fund is a Proprietary Fund used for the accounting for costs of providing vehicle and other licensing services to the public. The Fund is supposed to be self-supporting in that the services rendered are financed through user charges. The Deputy Registrar Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues The major revenue sources for the Deputy Registrar Fund comes from charges for services. Other revenue is from investment earnings. Based on projected revenues and expenses, the Deputy Registrar Fund is projected to maintain adequate cash balance over the planning period. For purposes of the Plan, the revenue objective for the Deputy Registrar Fund is focused on providing revenue sufficient to achieve ending year-end cash balance to cover the following purposes: • Three-months of operating expense • Following year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and other reserve purposes Expenses Expenses include operations, capital, and depreciation of capital assets. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. Transfers There are no recurring interfund transfers in. However, the Plan includes a transfer of $1,750,000 to the Capital Projects Fund in 2023 to support the Downtown Roadway and Pedestrian Improvement Project. An annual $100,000 transfer out to the Community Center Fund is projected beginning in 2024 through the long-term planning period. Balance Sheet Future estimated receivables and payables are projected to remain at historic amounts during the planning period. The Fund is projected to maintain a minimum cash balance of $300,000 between 2024-2032. 84 $0.0 $0.1 $0.1 $0.2 $0.2 $0.3 $0.3 $0.4 $0.4 $0.5 $0.5 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 60. Deputy Registrar Fund Ending Cash Balance by Purpose Cash available for future capital / unassigned Cash for 3-months operating reserve Cash for next year debt service Cash for next year planned capital 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.1 $0.2 $0.2 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ending unrestricted Net Position as % of ExpensesMillionsChart 61. Deputy Registrar Fund Unrestricted Net Position Ending Unrestricted Net Position Ending Unrestricted Net Position as % of Expenses $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032MillionsChart 62. Deputy Registrar Fund Revenues and Expenses Revenues Expenses 85 Table 30 City of Monticello Finance Plan Deputy Registrar Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Other intergovernmental - - - - - - - - - - - - Charges for services 941,759 889,451 840,000 900,000 918,000 936,360 955,087 974,189 993,673 1,013,546 1,033,817 1,054,493 Investment earnings (11,867) (76,557) 19,800 10,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Other revenues 915 6,043 11,200 8,000 - - - - - - - - Total 930,807 818,937 871,000 918,000 943,000 961,360 980,087 999,189 1,018,673 1,038,546 1,058,817 1,079,493 Expenses Depreciation 8,178 20,975 20,975 23,725 24,100 24,475 24,850 25,225 25,600 25,975 27,475 27,850 Transfer out - - 1,750,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Operating expense before depreciation 584,076 756,261 792,000 785,000 804,625 824,741 845,359 866,493 888,155 910,359 933,118 956,446 Total 592,254 777,236 2,562,975 908,725 928,725 949,216 970,209 991,718 1,013,755 1,036,334 1,060,593 1,084,296 Change in Net Position 338,553 41,701 (1,691,975) 9,275 14,275 12,144 9,878 7,471 4,917 2,212 (1,776) (4,803) Ending net position 2,314,352 2,356,053 664,078 673,353 687,628 699,772 709,650 717,121 722,039 724,250 722,474 717,671 Assets Cash and investments 2,018,584 2,240,031 401,389 324,389 347,764 369,383 389,111 406,807 422,325 435,511 401,210 409,257 Due from other governments 66,445 76,035 66,445 66,445 66,445 66,445 66,445 66,445 66,445 66,445 66,445 66,445 All other receivables and prepaid items 3,272 2,615 3,272 3,272 3,272 3,272 3,272 3,272 3,272 3,272 3,272 3,272 Capital assets 648,013 656,884 656,884 766,884 781,884 796,884 811,884 826,884 841,884 856,884 916,884 931,884 Accumulated depreciation (69,626) (90,601) (111,576) (135,301) (159,401) (183,876) (208,726) (233,951) (259,551) (285,526) (313,001) (340,851) Deferred outflows of resources 107,220 132,790 107,220 107,220 107,220 107,220 107,220 107,220 107,220 107,220 107,220 107,220 Total Assets and Deferred Outflows 2,773,908 3,017,754 1,123,634 1,132,909 1,147,184 1,159,328 1,169,206 1,176,677 1,181,595 1,183,806 1,182,030 1,177,227 Liabilities Due to other governmental units - - - - - - - - - - - - All other liabilities 316,482 651,052 316,482 316,482 316,482 316,482 316,482 316,482 316,482 316,482 316,482 316,482 Deferred inflows of resources 143,074 10,649 143,074 143,074 143,074 143,074 143,074 143,074 143,074 143,074 143,074 143,074 Total Liabilities and Deferred Inflows 459,556 661,701 459,556 459,556 459,556 459,556 459,556 459,556 459,556 459,556 459,556 459,556 Total Liabilities, Deferred Inflows, and Net Posit 2,773,908 3,017,754 1,123,634 1,132,909 1,147,184 1,159,328 1,169,206 1,176,677 1,181,595 1,183,806 1,182,030 1,177,227 86 Table 31 City of Monticello Finance Plan - Change in Ending Cash Balance Deputy Registrar Fund 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Use of Cash Operations & Maintenance and Other Expense 792,000 785,000 804,625 824,741 845,359 866,493 888,155 910,359 933,118 956,446 Capital Acquisition / Outlay - 110,000 15,000 15,000 15,000 15,000 15,000 15,000 60,000 15,000 Interfund Transfers Out 1,750,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Total Use of Cash 2,542,000 995,000 919,625 939,741 960,359 981,493 1,003,155 1,025,359 1,093,118 1,071,446 Source of Cash Revenues 871,000 918,000 943,000 961,360 980,087 999,189 1,018,673 1,038,546 1,058,817 1,079,493 Total Source of Cash 871,000 918,000 943,000 961,360 980,087 999,189 1,018,673 1,038,546 1,058,817 1,079,493 Net Change in Other Assets and Liabilities (167,642) - - - - - - - - - Change in Cash Balance (1,838,642) (77,000) 23,375 21,619 19,728 17,696 15,517 13,187 (34,301) 8,047 Ending Cash 401,389 324,389 347,764 369,383 389,111 406,807 422,325 435,511 401,210 409,257 Ending Cash by Purpose Cash for next year planned capital 110,000 15,000 15,000 15,000 15,000 15,000 15,000 60,000 15,000 50,000 Cash for next year debt service - - - - - - - - - - Cash for 3-months operating reserve 196,250 201,156 206,185 211,340 216,623 222,039 227,590 233,280 239,112 246,285 Cash available for future capital / unassigned 95,139 108,233 126,579 143,044 157,488 169,768 179,735 142,232 147,099 112,972 Ending Cash 401,389 324,389 347,764 369,383 389,111 406,807 422,325 435,511 401,210 409,257 87 BENEFIT ACCRUAL FUND The Benefit Accrual Fund is an Internal Service Fund used for the accounting for costs of providing benefits to City personnel for the non-proprietary funds only. The Fund is supposed to be self- supporting in that the accrual of benefits to personnel are financed through user charges to other City funds. The Benefit Accrual Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues The major revenue source comes from charges for services to other City Governmental Funds. Based on projected revenues and expenses, the Fund is projected to maintain adequate cash balance over the planning period. Expenses Expenses include operating costs only for employee benefits. Transfers There are no interfund transfers planned. Balance Sheet Future estimated receivables and payable are projected to remain at approximate historic amounts during the planning period. 88 Table 32 City of Monticello Finance Plan Benefit Accrual Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings (1,898) (11,885) - - - - - - - - - - Charges to other funds (19,915) 9,325 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Total Revenues (21,813) (2,560) 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Expenditures Operating expense before depreciation (19,915) 9,325 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Total Expenditures (19,915) 9,325 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Net Change in Fund Balances (1,898) (11,885) - - - - - - - - - - Ending Fund Balance 25,799 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 Assets Cash and investments 306,920 304,360 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 Total Assets 306,920 304,360 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 Liabilities All other liabilities 281,121 290,446 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Total Liabilities and deferred inflows 281,121 290,446 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Fund Balance 25,799 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 13,914 Total Liab, deferred inflows, and fund balance 306,920 304,360 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 313,914 89 CENTRAL EQUIPMENT FUND The Central Equipment Fund is an Internal Service Fund used for the accounting for costs of providing equipment for governmental purposes, not including the enterprise operations. The Fund is supposed to be self-supporting in that the cost of equipment is to be financed through user charges to city departments. The Central Equipment Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues Revenue sources come from charges for services to other City Governmental Funds, most notably the General Fund. Other revenue is from investment earnings. Based on projected revenues and expenses, the Fund is not projected to maintain adequate cash balance over the planning period. The City will need to adjust the timing or amount of future equipment acquisitions or be prepared to support the Central Equipment Fund with charges to other funds enough to cover expenses in the future. Expenses Expenses include capital (equipment) acquisitions and depreciation of capital assets. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. Transfers The City has transferred in revenue from other City funds in prior years to provide cash for future equipment acquisition. The Plan does not include any future transfers in. Balance Sheet There are no existing or planned bonds payable projected. The current bonds payable will be fully paid off in 2024. 90 Table 33 City of Monticello Finance Plan Central Equipment Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings (1,330) (51,466) 10,000 10,000 - - - - - - - - Sale of capital assets - - - - - - - - - - - - Other revenue for capital 89,705 33,529 109,000 10,500 - - - - - - - - Transfer in 1,573,657 - - - - - - - - - - - Charges to other funds 552,369 578,400 633,000 567,500 700,000 700,000 800,000 800,000 800,000 800,000 800,000 800,000 Total Revenues 2,214,401 560,463 752,000 588,000 700,000 700,000 800,000 800,000 800,000 800,000 800,000 800,000 Expenditures Interest payments 6,720 5,220 3,570 1,830 - - - - - - - - Other expenses (62) (69) 2,430 - - - - - - - - - Depreciation 241,156 379,442 513,142 542,342 688,942 747,342 1,016,942 1,046,842 1,099,142 1,109,842 1,234,342 1,260,542 Transfer out - - - - - - - - - - - - Total Expenditures 247,814 384,593 519,142 544,172 688,942 747,342 1,016,942 1,046,842 1,099,142 1,109,842 1,234,342 1,260,542 Net Change in Fund Balances 1,966,587 175,870 232,858 43,828 11,058 (47,342) (216,942) (246,842) (299,142) (309,842) (434,342) (460,542) Ending Fund Balance 3,773,478 3,949,348 4,182,206 4,226,034 4,237,092 4,189,750 3,972,808 3,725,966 3,426,824 3,116,982 2,682,640 2,222,098 Assets Cash and investments 1,411,889 1,383,686 733,020 967,190 201,190 317,190 (1,578,810) (1,077,810) (800,810) (107,810) (552,810) (14,810) Due from other governments - 483 - - - - - - - - - - All other receivables and prepaid items 50,722 - - - - - - - - - - - Capital assets 3,628,968 4,110,695 5,447,695 5,739,695 7,205,695 7,789,695 10,485,695 10,784,695 11,307,695 11,414,695 12,659,695 12,921,695 Accumulated depreciation (1,086,161) (1,425,367) (1,938,509) (2,480,851) (3,169,793) (3,917,135) (4,934,077) (5,980,919) (7,080,061) (8,189,903) (9,424,245) (10,684,787) Deferred outflows of resources - - - - - - - - - - - - Total Assets 4,005,418 4,069,497 4,242,206 4,226,034 4,237,092 4,189,750 3,972,808 3,725,966 3,426,824 3,116,982 2,682,640 2,222,098 Liabilities All other liabilities 51,940 149 - - - - - - - - - - Bonds payable 180,000 120,000 60,000 - - - - - - - - - Total Liabilities and deferred inflows 231,940 120,149 60,000 - - - - - - - - - Fund Balance 3,773,478 3,949,348 4,182,206 4,226,034 4,237,092 4,189,750 3,972,808 3,725,966 3,426,824 3,116,982 2,682,640 2,222,098 Total Liab, deferred inflows, and fund balance 4,005,418 4,069,497 4,242,206 4,226,034 4,237,092 4,189,750 3,972,808 3,725,966 3,426,824 3,116,982 2,682,640 2,222,098 91 INFORMATION TECHNOLOGY (IT) FUND The IT Fund is an Internal Service Fund used for the accounting for costs of providing information technology services to city departments. The Fund is supposed to be self-supporting in that the cost of providing IT services is to be financed through user charges to city departments. The IT Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred regardless of the timing of cashflows. Revenues Revenue sources come from charges for services to other City funds. Other revenue is from investment earnings. Other intergovernmental revenue has been received in prior years but there is no intergovernmental revenue projected for future years. Based on projected revenues and expenses, the Fund is projected to maintain adequate cash balance over the planning period. The Fund is projected to have cash sufficient to pay for capital improvements without issuance of debt. This revenue sufficiency is based on the assumption that the other City funds will be able to support the total charges as shown in the finance plan for the IT Fund. Expenses Expenses include operations, capital, and depreciation of capital assets. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. Transfers There are no interfund transfers planned for this Fund. Balance Sheet There are no existing or planned bonds payable projected. 92 Table 34 City of Monticello Finance Plan IT Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings (1,075) (6,977) 3,853 3,858 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Other revenues - - 5,139 6,148 - - - - - - - - Charges to other funds 270,890 423,450 529,008 549,994 560,994 572,214 658,046 671,207 684,631 698,323 712,290 726,536 Total Revenues 269,815 416,473 538,000 560,000 564,994 576,214 662,046 675,207 688,631 702,323 716,290 730,536 Expenditures Depreciation 28,397 32,313 34,791 34,791 34,791 34,791 34,791 34,791 34,791 34,791 34,791 34,791 Operating expense before depreciation 276,755 438,568 513,220 560,000 579,600 599,886 617,883 636,419 655,512 675,177 695,432 716,295 Total Expenditures 305,152 470,881 548,011 594,791 614,391 634,677 652,674 671,210 690,303 709,968 730,223 751,086 Net Change in Fund Balances (35,337) (54,408) (10,011) (34,791) (49,397) (58,463) 9,372 3,997 (1,672) (7,644) (13,933) (20,550) Ending Fund Balance 364,583 310,175 300,164 265,373 215,976 157,513 166,885 170,882 169,210 161,565 147,632 127,081 Assets Cash and investments 171,997 86,813 47,822 47,822 33,216 9,544 53,707 92,495 125,614 152,760 173,618 187,858 All other receivables and prepaid items 53,501 55,473 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 Capital assets 220,669 308,399 333,179 333,179 333,179 333,179 333,179 333,179 333,179 333,179 333,179 333,179 Accumulated depreciation (68,733) (101,046) (135,837) (170,628) (205,419) (240,210) (275,001) (309,792) (344,583) (379,374) (414,165) (448,956) Total Assets 377,434 349,639 300,164 265,373 215,976 157,513 166,885 170,882 169,210 161,565 147,632 127,081 Liabilities All other liabilities 12,851 39,464 - - - - - - - - - - Total Liabilities and deferred inflows 12,851 39,464 - - - - - - - - - - Fund Balance 364,583 310,175 300,164 265,373 215,976 157,513 166,885 170,882 169,210 161,565 147,632 127,081 Total Liab, deferred inflows, and fund balance 377,434 349,639 300,164 265,373 215,976 157,513 166,885 170,882 169,210 161,565 147,632 127,081 93 FACILITIES MAINTENANCE FUND The Facilities Maintenance Fund was established as an Internal Service Fund for the accounting for costs of maintaining municipal facilities. The Fund is supposed to be self-supporting in that the costs of maintaining municipal facilities are financed through user charges to other City funds. The Facilities Maintenance Fund is presented on an accrual basis. There is a recognition of expenses when incurred and the subsequent amortization of the deferred outflows. Revenues are recognized when earned. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. There are accruals of revenues earned and expenses incurred. Revenues The major revenue source comes from charges for services to other City funds. Based on projected revenues and expenses, the Fund will either need to reduce costs or adjust charges to other City funds to remain in good operational standing. Expenses Expenses include operations, capital, and depreciation of capital assets. The Finance Plan includes the addition of new staff (1.0 FTE) in years 2027. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. Transfers There are no interfund transfers planned for this Fund. Balance Sheet There are no existing or planned bonds payable projected. 94 Table 35 City of Monticello Finance Plan Facilities Maintenance Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings - (2) - - - - - - - - - - Other revenues - - 25,000 50,000 - - - - - - - - Transfer in - 150,000 - - - - - - - - - - Charges to other funds 160,139 473,483 378,000 385,000 408,100 432,586 467,193 495,224 524,938 556,434 589,820 625,209 Total Revenues 160,139 623,481 403,000 435,000 408,100 432,586 467,193 495,224 524,938 556,434 589,820 625,209 Expenditures FTE Increases / Current Expenses - - - - - - 100,000 103,000 106,090 219,273 225,851 232,626 Depreciation - - - - - - - - 5,000 5,000 5,000 5,000 Operating expense before depreciation 193,993 553,722 403,000 435,000 443,700 452,574 461,625 470,858 480,275 489,881 499,678 509,672 Total Expenditures 193,993 553,722 403,000 435,000 443,700 452,574 561,625 573,858 591,365 714,153 730,529 747,298 Net Change in Fund Balances (33,854) 69,759 - - (35,600) (19,988) (94,433) (78,634) (66,427) (157,719) (140,709) (122,089) Ending Fund Balance (33,854) 35,905 35,905 35,905 305 (19,683) (114,116) (192,749) (259,176) (416,896) (557,604) (679,693) Assets Cash and investments 2,209 74,909 35,905 35,905 305 (19,683) (114,116) (192,749) (304,176) (456,896) (592,604) (709,693) All other receivables and prepaid items - 2,307 - - - - - - - - - - Capital assets - - - - - - - - 50,000 50,000 50,000 50,000 Accumulated depreciation - - - - - - - - (5,000) (10,000) (15,000) (20,000) Total Assets 2,209 77,216 35,905 35,905 305 (19,683) (114,116) (192,749) (259,176) (416,896) (557,604) (679,693) Liabilities Due to other governmental units 80 91 - - - - - - - - - - All other liabilities 35,983 41,220 - - - - - - - - - - Total Liabilities and deferred inflows 36,063 41,311 - - - - - - - - - - Fund Balance (33,854) 35,905 35,905 35,905 305 (19,683) (114,116) (192,749) (259,176) (416,896) (557,604) (679,693) Total Liab, deferred inflows, and fund balance 2,209 77,216 35,905 35,905 305 (19,683) (114,116) (192,749) (259,176) (416,896) (557,604) (679,693) 95 APPENDICES 96 Appendix A – Page 1 of 2 City of Monticello Projected Staffing Additions (Full-Time Equivalents/FTE) All City Funds 2024 2025 2026 2027 2028 2029 2030 2031 2032 GOVERNMENTAL FUNDS General Fund City Hall Community Service Officer 1.00 Planner 1.00 Fire Chief 1.00 PW Engineering Staff 0.50 Streets Operator 1.00 Recreation and culture Parks Operator 1.00 1.00 2.00 Staff (PT)3.00 Seasonal Staff (6m)2.00 0.50 1.50 6.00 1.00 Seasonal Staff (3m)0.25 0.75 0.50 MCC Fund Programmer (FT)1.00 1.00 Total Governmental Funds 0.00 2.00 0.00 3.00 4.75 9.00 4.75 0.00 2.50 PROPRIETARY FUNDS Water/Sewer Funds Operator 1.00 1.00 Stormwater Fund Operator 0.50 1.00 FM Fund Operator 1.00 1.00 Total Proprietary Funds 0.00 0.00 0.50 1.00 1.00 1.00 0.00 2.00 0.00 97 Appendix A – Page 2 of 2 City of Monticello Projected Staffing Additions (Dollars) All City Funds 2024 2025 2026 2027 2028 2029 2030 2031 2032 GOVERNMENTAL FUNDS General Fund City Hall Community Service Officer 113,000$ Planner 117,000$ Fire Chief 129,000$ PW Engineering Staff 49,500$ Streets Operator 98,000$ Recreation and culture Parks Operator 98,000$ 101,000$ 220,000$ Staff (PT)114,000$ Seasonal Staff (6m)75,000$ 17,000$ 54,000$ 216,000$ 38,000$ Seasonal Staff (3m)9,000$ 27,000$ 20,000$ MCC Fund Programmer (FT)92,000$ 95,000$ Total Governmental Funds -$ 75,000$ -$ 287,500$ 369,000$ 532,000$ 179,000$ -$ 240,000$ PROPRIETARY FUNDS Water/Sewer Funds Operator 99,000$ 114,000$ Stormwater Fund Operator 49,500$ 102,000$ FM Fund Operator 100,000$ 110,000$ Total Proprietary Funds -$ -$ 49,500$ 102,000$ 100,000$ 99,000$ -$ 224,000$ -$ 98 Appendix B – Page 1 of 2 City of Monticello Projected Future Development in Monticello Analysis is Based on Today's Values and Assumes Valuation Estimate will Increase by 3.0% Annually Select Property Type Location Identification Detail Customer Classification for Utility Billing Construction Completion Y ear Captured Tax Capacity for TIF Final Year of TIF District if Applicable Housing Units Market Value Per Housing Unit CI Building SF CI Value Per SF Apartments 01 Residential Apartments Residential 2021 No 55 175,000 Apartments 02 Residential Apartments Residential 2022 No 55 175,000 Apartments 05 Residential Apartments Residential 2022 No 200 175,000 Commercial 04 Commercial Office Commercial 2022 No 5,100 70 Commercial Deegan Commercial 2022 No 4,146 150 Commercial 7th Street CCD Commercial 2022 No 13,962 150 Commercial Dundas & TH25 Commercial 2022 No 8,208 150 Industrial Otter Creek Commercial 2022 No 21,400 90 Industrial Fallon Commercial 2022 Yes 2032 40,000 90 Industrial Chelsea West Commercial 2022 No 49,032 70 Industrial Commercial 2022 Yes 2032 59,000 70 Apartments 03 Residential Apartments Residential 2023 No 55 175,000 Apartments 7th & CSAH 39 Residential 2023 Yes 2050 108 175,000 Apartments Willows Landing Residential 2023 No 25 275,000 Apartments 7th & Elm Residential 2023 No 53 175,000 Apartments Block 52 Residential 2023 Yes 2050 87 175,000 Apartments School Blvd East/Walmart Residential 2023 No 93 175,000 Apartments Fenning Ave Residential 2023 No 5 245,000 Commercial West Chelsea/90th Commercial 2023 No 43,000 150 Commercial Block 52 Commercial 2023 Yes 2050 30,300 150 Industrial Dundas - Oakwood Commercial 2023 No 6,976 70 Residential Single Family Farmstead & Fallon Residential 2023 No 53 300,000 Residential Single Family School Blvd or Fallon Residential 2023 No 65 300,000 Residential Single Family 7th & Elm TH Residential 2023 No 6 300,000 Residential Single Family Residential 2023 No 27 165,000 Apartments 07 Residential Apartments Residential 2024 No 150 175,000 Apartments 7th Street Residential 2024 Yes 2050 60 275,000 Commercial 06 Retail Commercial Commercial 2024 No 10,000 150 Commercial Chelsea West Commercial 2024 No 41,000 150 Industrial Dundas - Oakwood Commercial 2024 No 6,976 70 Residential Single Family Edmonson/85th Residential 2024 No 54 300,000 99 Appendix B – Page 2 of 2 City of Monticello Projected Future Development in Monticello Analysis is Based on Today's Values and Assumes Valuation Estimate will Increase by 3.0% Annually Select Property Type Location Identification Detail Customer Classification for Utility Billing Construction Completion Year Captured Tax Capacity for TIF Final Year of TIF District if Applicable Housing Units Market Value Per Housing Unit CI Building SF CI Value Per SF Residential Single Family Twinhomes - Elm/7th Residential 2024 No 28 300,000 Residential Single Family Mixed SF/TH, Fallon/85th Residential 2025 No 49 300,000 Residential Single Family 86th Residential 2025 No 21 250,000 Residential Single Family School Blvd or Fallon Residential 2025 No 65 300,000 Industrial Dundas - Oakwood Commercial 2026 No 6,976 70 Residential Single Family Mixed SF/TH, Fallon/85th Residential 2026 No 66 300,000 Commercial 08 Retail/Hotel Commercial 2027 No 45,000 150 Industrial Dundas - Oakwood Commercial 2027 No 6,976 70 Residential Single Family 86th/85th Residential 2027 No 56 280,000 Residential Single Family School Blvd or Fallon Residential 2027 No 65 300,000 Apartments 09 Residential Apartments Residential 2028 No 75 175,000 Residential Single Family 85th Residential 2028 No 43 300,000 Commercial 10 Retail Commercial Commercial 2029 No 20,000 150 Residential Single Family Edmonson Residential 2029 No 37 300,000 Residential Single Family School Blvd or Fallon Residential 2029 No 65 300,000 Apartments 11 Residential Apartments Residential 2030 No 100 175,000 Apartments 12 Residential Apartments Residential 2031 No 75 175,000 Apartments 13a Res Mixed Residential 2031 No 100 175,000 Commercial 13 Commercial Commercial 2031 No 95,000 150 Residential Single Family Edmonson Residential 2031 No 29 300,000 Residential Single Family School Blvd and/or Fallon Residential 2031 No 65 300,000 Apartments 14 Residential Apartments Residential 2033 No 100 175,000 Residential Single Family School Blvd and/or Fallon Residential 2033 No 65 300,000 Commercial 14a Retail/Restaurants Commercial 2034 No 65,000 150 Commercial 15 Retail/Restaurant Commercial 2035 No 45,000 150 Residential Single Family RA South Wetland Residential 2035 No 30 300,000 Residential Single Family School Blvd and/or Fallon Residential 2035 No 65 300,000 Commercial 16 Retail/Restaurant Commercial 2036 No 25,000 150 Commercial 17 Retail/Restaurant Commercial 2037 No 20,000 150 100 Appendix C – Page 1 of 19 City of Monticello Summary of Tax Increment Financing (TIF) Districts TIF Districts are Included as "Sub-Funds" of the Economic Development Authority (EDA) Fund District Number 1-6 1-19 1-20 1-22 1-24 1-29 1-30 Name Raindance Mississippi Shores Prairie West Downtown St. Henry Front Porch Assoc. Central MN Housing Type Redevelopment Housing (Rental) Redevelopment Redevelopment Housing (Rental) Housing (Owner) Housing (Owner) Date Established 11/12/1985 3/13/1995 6/24/1996 3/10/1997 8/24/1998 3/15/2002 6/24/2002 Date Certified 12/5/1985 4/28/1995 12/23/1996 6/30/1997 1/8/1999 8/22/2002 8/22/2002 Year of First Increment 1988 1998 1999 1999 2001 2004 2004 Date of Decertification 12/31/2013 12/31/2023 12/31/2018 12/31/2023 12/31/2026 12/31/2029 12/31/2029 District Number 1-34 1-40 1-41 1-42 1-43 1-45 1-46 Name Interchange Briggs (Rivertown) UMC Headwaters Apts Headwaters Villas Block 52 WiHa Type Renewal & Renovation Housing (Rental) Economic Development Housing (Rental) Housing (Rental) Redevelopment Economic Development Date Established 7/25/2005 6/25/2018 9/3/2019 2/14/2022 2/14/2022 6/27/2022 7/11/2022 Date Certified 8/1/2006 7/3/2018 5/3/2021 7/7/2023 7/10/2023 7/6/2023 7/10/2023 Year of First Increment 2007 2020 2022 Date of Decertification 12/31/2022 12/31/2045 12/31/2030 101 Appendix C – Page 2 of 19 City of Monticello Finance Plan EDA General Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Property taxes 368,427 388,291 402,000 451,000 464,530 478,466 492,820 507,604 522,833 538,518 554,673 571,313 Property taxes other - - - - - - - - - - - - Tax increment - - - - - - - - - - - - Other intergovernmental - 375,547 - - - - - - - - - - Charges for services 3,170 130,973 - - - - - - - - - - Investment earnings (4,440) (115,830) 42,000 42,000 - - - - - - - - Other revenues 39,302 838,752 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Sale of capital assets - - - - - - - - - - - - Transfer in - - - - - - - - - - - - Total Revenues 406,459 1,617,733 450,000 499,000 470,530 484,466 498,820 513,604 528,833 544,518 560,673 577,313 Expenditures Current - Economic development 526,830 1,051,116 450,000 499,000 511,475 524,262 537,368 550,803 564,573 578,687 593,154 607,983 Transfer out 90,607 - - - - - - - - - - - TIF pay-go note payments - - - - - - - - - - - - Excess increments - - - - - - - - - - - - Total Expenditures 617,437 1,051,116 450,000 499,000 511,475 524,262 537,368 550,803 564,573 578,687 593,154 607,983 Net Change in Fund Balances (210,978) 566,617 - - (40,945) (39,796) (38,549) (37,198) (35,740) (34,169) (32,481) (30,670) Ending Fund Balance 4,448,040 5,014,657 5,014,657 5,014,657 4,973,712 4,933,916 4,895,367 4,858,169 4,822,429 4,788,260 4,755,779 4,725,109 Assets Cash and investments 813,772 2,745,696 2,911,698 2,926,698 2,900,753 2,875,957 2,852,408 2,820,210 2,784,470 2,750,301 2,717,820 2,687,150 Taxes receivable 2,508 13,843 2,508 2,508 2,508 2,508 2,508 2,508 2,508 2,508 2,508 2,508 Notes receivable - 127,246 - - - - - - - - - - Due from other funds 136,782 124,149 110,363 95,363 80,363 65,363 50,363 45,363 45,363 45,363 45,363 45,363 All other receivables and prepaid items 3,752 18,465 3,752 3,752 3,752 3,752 3,752 3,752 3,752 3,752 3,752 3,752 Land held for resale / inventory 3,513,757 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 2,006,336 Total Assets 4,470,571 5,035,735 5,034,657 5,034,657 4,993,712 4,953,916 4,915,367 4,878,169 4,842,429 4,808,260 4,775,779 4,745,109 Liabilities Due to other governmental units 190 326 - - - - - - - - - - All other liabilities 21,386 19,030 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Deferred inflows of resources 955 1,722 - - - - - - - - - - Escrow deposits - - - - - - - - - - - - Total Liabilities and deferred inflows 22,531 21,078 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Fund Balance 4,448,040 5,014,657 5,014,657 5,014,657 4,973,712 4,933,916 4,895,367 4,858,169 4,822,429 4,788,260 4,755,779 4,725,109 Total Liab, deferred inflows, and fund balance 4,470,571 5,035,735 5,034,657 5,034,657 4,993,712 4,953,916 4,915,367 4,878,169 4,842,429 4,808,260 4,775,779 4,745,109 102 Appendix C – Page 3 of 19 City of Monticello Finance Plan GMEF Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Investment earnings (5,492) - - - - - - - - - - - Other revenues 7,276 9,114 8,000 8,000 7,600 7,220 6,859 6,516 6,190 5,881 5,587 5,307 Total Revenues 1,784 9,114 8,000 8,000 7,600 7,220 6,859 6,516 6,190 5,881 5,587 5,307 Expenditures Current - Economic development - - - - - - - - - - - - Total Expenditures - - - - - - - - - - - - Net Change in Fund Balances 1,784 9,114 8,000 8,000 7,600 7,220 6,859 6,516 6,190 5,881 5,587 5,307 Ending Fund Balance 1,235,051 1,244,165 1,252,165 1,260,165 1,267,765 1,274,985 1,281,844 1,288,360 1,294,550 1,300,431 1,306,018 1,311,325 Assets Cash and investments 918,218 937,668 1,061,496 1,079,103 1,096,596 1,113,701 1,130,739 1,147,637 1,164,414 1,181,092 1,197,692 1,214,234 Notes receivable 316,833 306,497 190,669 181,062 171,169 161,284 151,105 140,723 130,136 119,339 108,326 97,091 All other receivables and prepaid items - - - - - - - - - - - - Total Assets 1,235,051 1,244,165 1,252,165 1,260,165 1,267,765 1,274,985 1,281,844 1,288,360 1,294,550 1,300,431 1,306,018 1,311,325 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 1,235,051 1,244,165 1,252,165 1,260,165 1,267,765 1,274,985 1,281,844 1,288,360 1,294,550 1,300,431 1,306,018 1,311,325 Total Liab, deferred inflows, and fund balance 1,235,051 1,244,165 1,252,165 1,260,165 1,267,765 1,274,985 1,281,844 1,288,360 1,294,550 1,300,431 1,306,018 1,311,325 103 Appendix C – Page 4 of 19 City of Monticello Finance Plan TIF Future Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues - - - - - - - - - - - - Expenditures Current - Economic development 866 - - - - - - - - - - - Total Expenditures 866 - - - - - - - - - - - Net Change in Fund Balances (866) - - - - - - - - - - - Ending Fund Balance (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) Assets Cash and investments - - - - - - - - - - - - All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - - - - - - - - - - - Liabilities Due to other funds 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 45,363 Fund Balance (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) (45,363) Total Liab, deferred inflows, and fund balance - - - - - - - - - - - - 104 Appendix C – Page 5 of 19 City of Monticello Finance Plan TIF 6 Fund Redevelopment District 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - - - - - - - - - Investment earnings (69) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues (69) - - - - - - - - - - - Expenditures Current - Economic development 35 - 18,001 - - - - - - - - - Transfer out - - - - - - - - - - 281,000 - Total Expenditures 35 - 18,001 - - - - - - - 281,000 - Net Change in Fund Balances (104) - (18,001) - - - - - - - (281,000) - Ending Fund Balance 749,001 749,001 731,000 731,000 731,000 731,000 731,000 731,000 731,000 731,000 450,000 450,000 Assets Cash and investments 18,001 18,001 60,000 120,000 180,000 240,000 300,000 360,000 420,000 480,000 259,000 450,000 Due from other funds 731,000 731,000 671,000 611,000 551,000 491,000 431,000 371,000 311,000 251,000 191,000 - All other receivables and prepaid items - - - - - - - - - - - - Total Assets 749,001 749,001 731,000 731,000 731,000 731,000 731,000 731,000 731,000 731,000 450,000 450,000 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 749,001 749,001 731,000 731,000 731,000 731,000 731,000 731,000 731,000 731,000 450,000 450,000 Total Liab, deferred inflows, and fund balance 749,001 749,001 731,000 731,000 731,000 731,000 731,000 731,000 731,000 731,000 450,000 450,000 105 Appendix C – Page 6 of 19 City of Monticello Finance Plan TIF 19 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 39,674 41,053 40,000 - - - - - - - - - Investment earnings (628) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 39,046 41,053 40,000 - - - - - - - - - Expenditures Current - Economic development 35 173,000 132,137 165 - - - - - - - - Total Expenditures 35 173,000 132,137 165 - - - - - - - - Net Change in Fund Balances 39,011 (131,947) (92,137) (165) - - - - - - - - Ending Fund Balance 131,947 - (92,137) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) Assets Cash and investments 131,947 - (92,137) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) All other receivables and prepaid items - - - - - - - - - - - - Total Assets 131,947 - (92,137) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 131,947 - (92,137) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) Total Liab, deferred inflows, and fund balance 131,947 - (92,137) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) (92,302) 106 Appendix C – Page 7 of 19 City of Monticello Finance Plan TIF 20 Fund Redevelopment 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - - - - - - - - - Investment earnings (583) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues (583) - - - - - - - - - - - Expenditures Current - Economic development 35 48 104,595 350 - - - - - - - - Total Expenditures 35 48 104,595 350 - - - - - - - - Net Change in Fund Balances (618) (48) (104,595) (350) - - - - - - - - Ending Fund Balance 104,220 104,172 (423) (773) (773) (773) (773) (773) (773) (773) (773) (773) Assets Cash and investments 104,220 104,172 (423) (773) (773) (773) (773) (773) (773) (773) (773) (773) All other receivables and prepaid items - - - - - - - - - - - - Total Assets 104,220 104,172 (423) (773) (773) (773) (773) (773) (773) (773) (773) (773) Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 104,220 104,172 (423) (773) (773) (773) (773) (773) (773) (773) (773) (773) Total Liab, deferred inflows, and fund balance 104,220 104,172 (423) (773) (773) (773) (773) (773) (773) (773) (773) (773) 107 Appendix C – Page 8 of 19 City of Monticello Finance Plan TIF 22 Fund Redevelopment and Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 308,224 296,000 308,000 - - - - - - - - - Investment earnings (2,524) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 305,700 296,000 308,000 - - - - - - - - - Expenditures Current - Economic development 3,812 171,695 317,648 1,750 - - - - - - - - TIF pay-go note payments 11,987 12,191 10,270 - - - - - - - - - Excess increments 183,012 188,360 176,595 176,595 - - - - - - - - Total Expenditures 198,811 372,246 504,513 178,345 - - - - - - - - Net Change in Fund Balances 106,889 (76,246) (196,513) (178,345) - - - - - - - - Ending Fund Balance 507,130 430,884 234,371 56,026 56,026 56,026 56,026 56,026 56,026 56,026 56,026 56,026 Assets Cash and investments 504,232 437,082 234,371 56,026 56,026 56,026 56,026 56,026 56,026 56,026 56,026 56,026 Taxes receivable 4,733 2,687 - - - - - - - - - - All other receivables and prepaid items - - - - - - - - - - - - Land held for resale / inventory 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 Total Assets 672,165 602,969 397,571 219,226 219,226 219,226 219,226 219,226 219,226 219,226 219,226 219,226 Liabilities Unearned revenue 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 All other liabilities - 6,198 - - - - - - - - - - Deferred inflows of resources 1,835 2,687 - - - - - - - - - - Total Liabilities and deferred inflows 165,035 172,085 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 163,200 Fund Balance*507,130 430,884 234,371 56,026 56,026 56,026 56,026 56,026 56,026 56,026 56,026 56,026 Total Liab, deferred inflows, and fund balance 672,165 602,969 397,571 219,226 219,226 219,226 219,226 219,226 219,226 219,226 219,226 219,226 108 Appendix C – Page 9 of 19 City of Monticello Finance Plan TIF 24 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 57,716 59,835 58,000 60,000 60,000 60,000 - - - - - - Investment earnings (813) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 56,903 59,835 58,000 60,000 60,000 60,000 - - - - - - Expenditures Current - Economic development 35 233,911 174,301 200 - - - - - - - - Total Expenditures 35 233,911 174,301 200 - - - - - - - - Net Change in Fund Balances 56,868 (174,076) (116,301) 59,800 60,000 60,000 - - - - - - Ending Fund Balance 174,076 - (116,301) (56,501) 3,499 63,499 63,499 63,499 63,499 63,499 63,499 63,499 Assets Cash and investments 174,076 - (116,301) (56,501) 3,499 63,499 63,499 63,499 63,499 63,499 63,499 63,499 All other receivables and prepaid items - - - - - - - - - - - - Total Assets 174,076 - (116,301) (56,501) 3,499 63,499 63,499 63,499 63,499 63,499 63,499 63,499 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 174,076 - (116,301) (56,501) 3,499 63,499 63,499 63,499 63,499 63,499 63,499 63,499 Total Liab, deferred inflows, and fund balance 174,076 - (116,301) (56,501) 3,499 63,499 63,499 63,499 63,499 63,499 63,499 63,499 109 Appendix C – Page 10 of 19 City of Monticello Finance Plan TIF 29 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 34,961 36,119 35,000 44,000 44,000 44,000 44,000 44,000 44,000 - - - Investment earnings (988) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 33,973 36,119 35,000 44,000 44,000 44,000 44,000 44,000 44,000 - - - Expenditures Current - Economic development 35 230,083 194,354 365 - - - - - - - - Total Expenditures 35 230,083 194,354 365 - - - - - - - - Net Change in Fund Balances 33,938 (193,964) (159,354) 43,635 44,000 44,000 44,000 44,000 44,000 - - - Ending Fund Balance 193,964 - (159,354) (115,719) (71,719) (27,719) 16,281 60,281 104,281 104,281 104,281 104,281 Assets Cash and investments 193,964 - (159,354) (115,719) (71,719) (27,719) 16,281 60,281 104,281 104,281 104,281 104,281 All other receivables and prepaid items - - - - - - - - - - - - Total Assets 193,964 - (159,354) (115,719) (71,719) (27,719) 16,281 60,281 104,281 104,281 104,281 104,281 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 193,964 - (159,354) (115,719) (71,719) (27,719) 16,281 60,281 104,281 104,281 104,281 104,281 Total Liab, deferred inflows, and fund balance 193,964 - (159,354) (115,719) (71,719) (27,719) 16,281 60,281 104,281 104,281 104,281 104,281 110 Appendix C – Page 11 of 19 City of Monticello Finance Plan TIF 30 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 16,009 16,895 16,000 17,000 17,000 17,000 17,000 17,000 17,000 - - - Investment earnings (629) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 15,380 16,895 16,000 17,000 17,000 17,000 17,000 17,000 17,000 - - - Expenditures Current - Economic development 2,615 38,622 113,386 215 - - - - - - - - TIF interfund loan payments - - 11,846 15,000 15,800 15,800 15,800 5,800 - - - - Total Expenditures 2,615 38,622 125,232 15,215 15,800 15,800 15,800 5,800 - - - - Net Change in Fund Balances 12,765 (21,727) (109,232) 1,785 1,200 1,200 1,200 11,200 17,000 - - - Ending Fund Balance 21,727 - (109,232) (107,447) (106,247) (105,047) (103,847) (92,647) (75,647) (75,647) (75,647) (75,647) Assets Cash and investments 113,146 78,500 (44,232) (57,447) (71,247) (85,047) (98,847) (92,647) (75,647) (75,647) (75,647) (75,647) All other receivables and prepaid items - - - - - - - - - - - - Total Assets 113,146 78,500 (44,232) (57,447) (71,247) (85,047) (98,847) (92,647) (75,647) (75,647) (75,647) (75,647) Liabilities Due to other funds 91,419 78,500 65,000 50,000 35,000 20,000 5,000 - - - - - All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows 91,419 78,500 65,000 50,000 35,000 20,000 5,000 - - - - - Fund Balance 21,727 - (109,232) (107,447) (106,247) (105,047) (103,847) (92,647) (75,647) (75,647) (75,647) (75,647) Total Liab, deferred inflows, and fund balance 113,146 78,500 (44,232) (57,447) (71,247) (85,047) (98,847) (92,647) (75,647) (75,647) (75,647) (75,647) 111 Appendix C – Page 12 of 19 City of Monticello Finance Plan TIF 34 Fund Renewal and Renovation 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 217,828 220,840 - - - - - - - - - - Investment earnings (252) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 217,576 220,840 - - - - - - - - - - Expenditures Current - Economic development 35 48 54,818 - - - - - - - - - Transfer out 198,700 197,925 - - - - - - - - - - Total Expenditures 198,735 197,973 54,818 - - - - - - - - - Net Change in Fund Balances 18,841 22,867 (54,818) - - - - - - - - - Ending Fund Balance 54,503 77,370 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 Assets Cash and investments 54,503 77,370 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 All other receivables and prepaid items - - - - - - - - - - - - Total Assets 54,503 77,370 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 54,503 77,370 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 Total Liab, deferred inflows, and fund balance 54,503 77,370 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 22,552 112 Appendix C – Page 13 of 19 City of Monticello Finance Plan TIF 39 Fund Economic Development 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 45,247 - - - - - - - - - - - Investment earnings - - - - - - - - - - - - Transfer in 90,607 - - - - - - - - - - - Total Revenues 135,854 - - - - - - - - - - - Expenditures Current - Economic development 5,258 - - - - - - - - - - - Total Expenditures 5,258 - - - - - - - - - - - Net Change in Fund Balances 130,596 - - - - - - - - - - - Ending Fund Balance - - - - - - - - - - - - Assets All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - - - - - - - - - - - Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance - - - - - - - - - - - - Total Liab, deferred inflows, and fund balance - - - - - - - - - - - - 113 Appendix C – Page 14 of 19 City of Monticello Finance Plan TIF 40 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment 13,030 49,559 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 Investment earnings (5) - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues 13,025 49,559 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 72,000 Expenditures Current - Economic development 35 48 - 50 500 500 500 500 500 500 500 500 TIF pay-go note payments 11,727 44,603 60,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 62,049 Total Expenditures 11,762 44,651 60,049 62,099 62,549 62,549 62,549 62,549 62,549 62,549 62,549 62,549 Net Change in Fund Balances 1,263 4,908 11,951 9,901 9,451 9,451 9,451 9,451 9,451 9,451 9,451 9,451 Ending Fund Balance 1,598 6,506 18,457 28,358 37,809 47,260 56,711 66,162 75,613 85,064 94,515 103,966 Assets Cash and investments 1,598 6,506 18,457 28,358 37,809 47,260 56,711 66,162 75,613 85,064 94,515 103,966 All other receivables and prepaid items - - - - - - - - - - - - Total Assets 1,598 6,506 18,457 28,358 37,809 47,260 56,711 66,162 75,613 85,064 94,515 103,966 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance 1,598 6,506 18,457 28,358 37,809 47,260 56,711 66,162 75,613 85,064 94,515 103,966 Total Liab, deferred inflows, and fund balance 1,598 6,506 18,457 28,358 37,809 47,260 56,711 66,162 75,613 85,064 94,515 103,966 114 Appendix C – Page 15 of 19 City of Monticello Finance Plan TIF 41 Fund Economic Development 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 Investment earnings - - - - - - - - - - - - Other revenues - - - - - - - - - - - - Sale of capital assets 300,000 - - - - - - - - - - - Transfer in - - - - - - - - - - 281,000 - Total Revenues 300,000 - - 65,000 65,000 65,000 65,000 65,000 65,000 65,000 346,000 65,000 Expenditures Current - Economic development - 286 - 261 - - - - - - - - TIF interfund loan payments - - 5,000 40,000 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 Total Expenditures - 286 5,000 40,261 58,500 58,500 58,500 58,500 58,500 58,500 58,500 58,500 Net Change in Fund Balances 300,000 (286) (5,000) 24,739 6,500 6,500 6,500 6,500 6,500 6,500 287,500 6,500 Ending Fund Balance (731,000) (731,286) (736,286) (711,547) (705,047) (698,547) (692,047) (685,547) (679,047) (672,547) (385,047) (378,547) Assets Cash and investments - - (65,286) (100,547) (154,047) (207,547) (261,047) (314,547) (368,047) (421,547) (194,047) (378,547) All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - (65,286) (100,547) (154,047) (207,547) (261,047) (314,547) (368,047) (421,547) (194,047) (378,547) Liabilities Due to other funds 731,000 731,286 671,000 611,000 551,000 491,000 431,000 371,000 311,000 251,000 191,000 - All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows 731,000 731,286 671,000 611,000 551,000 491,000 431,000 371,000 311,000 251,000 191,000 - Fund Balance (731,000) (731,286) (736,286) (711,547) (705,047) (698,547) (692,047) (685,547) (679,047) (672,547) (385,047) (378,547) Total Liab, deferred inflows, and fund balance - - (65,286) (100,547) (154,047) (207,547) (261,047) (314,547) (368,047) (421,547) (194,047) (378,547) 115 Appendix C – Page 16 of 19 City of Monticello Finance Plan TIF 42 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - 156,129 157,699 159,285 160,886 162,504 164,137 165,787 167,454 Investment earnings - - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues - - - - 156,129 157,699 159,285 160,886 162,504 164,137 165,787 167,454 Expenditures Current - Economic development - - - - - - - - - - - - Total Expenditures - - - - - - - - - - - - Net Change in Fund Balances - - - - 156,129 157,699 159,285 160,886 162,504 164,137 165,787 167,454 Ending Fund Balance - - - - 156,129 313,828 473,113 633,999 796,503 960,640 1,126,427 1,293,881 Assets Cash and investments - - - - 156,129 313,828 473,113 633,999 796,503 960,640 1,126,427 1,293,881 All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - - - 156,129 313,828 473,113 633,999 796,503 960,640 1,126,427 1,293,881 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance - - - - 156,129 313,828 473,113 633,999 796,503 960,640 1,126,427 1,293,881 Total Liab, deferred inflows, and fund balance - - - - 156,129 313,828 473,113 633,999 796,503 960,640 1,126,427 1,293,881 116 Appendix C – Page 17 of 19 City of Monticello Finance Plan TIF 43 Fund Affordable Housing 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - 146,137 198,104 200,123 202,162 204,221 206,301 208,402 210,523 Investment earnings - - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues - - - - 146,137 198,104 200,123 202,162 204,221 206,301 208,402 210,523 Expenditures Current - Economic development - 127,246 - - - - - - - - - - Total Expenditures - 127,246 - - - - - - - - - - Net Change in Fund Balances - (127,246) - - 146,137 198,104 200,123 202,162 204,221 206,301 208,402 210,523 Ending Fund Balance - (127,246) (127,246) (127,246) 18,891 216,995 417,118 619,280 823,501 1,029,802 1,238,204 1,448,727 Assets Cash and investments - - (127,246) (127,246) 18,891 216,995 417,118 619,280 823,501 1,029,802 1,238,204 1,448,727 All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - (127,246) (127,246) 18,891 216,995 417,118 619,280 823,501 1,029,802 1,238,204 1,448,727 Liabilities All other liabilities - 127,246 - - - - - - - - - - Total Liabilities and deferred inflows - 127,246 - - - - - - - - - - Fund Balance - (127,246) (127,246) (127,246) 18,891 216,995 417,118 619,280 823,501 1,029,802 1,238,204 1,448,727 Total Liab, deferred inflows, and fund balance - - (127,246) (127,246) 18,891 216,995 417,118 619,280 823,501 1,029,802 1,238,204 1,448,727 117 Appendix C – Page 18 of 19 City of Monticello Finance Plan TIF 45 Fund Redevelopment 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - 233,854 236,386 238,943 241,525 244,134 246,768 249,430 252,117 Investment earnings - - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues - - - - 233,854 236,386 238,943 241,525 244,134 246,768 249,430 252,117 Expenditures Current - Economic development - - - - - - - - - - - - Total Expenditures - - - - - - - - - - - - Net Change in Fund Balances - - - - 233,854 236,386 238,943 241,525 244,134 246,768 249,430 252,117 Ending Fund Balance - - - - 233,854 470,240 709,183 950,708 1,194,842 1,441,610 1,691,040 1,943,157 Assets Cash and investments - - - - 233,854 470,240 709,183 950,708 1,194,842 1,441,610 1,691,040 1,943,157 All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - - - 233,854 470,240 709,183 950,708 1,194,842 1,441,610 1,691,040 1,943,157 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance - - - - 233,854 470,240 709,183 950,708 1,194,842 1,441,610 1,691,040 1,943,157 Total Liab, deferred inflows, and fund balance - - - - 233,854 470,240 709,183 950,708 1,194,842 1,441,610 1,691,040 1,943,157 118 Appendix C – Page 19 of 19 City of Monticello Finance Plan TIF 46 Fund Economic Development 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Actual Actual Estimated Proj Proj Proj Proj Proj Proj Proj Proj Proj Revenues Tax increment - - - - 30,273 92,093 155,143 219,443 221,941 224,464 227,012 229,586 Investment earnings - - - - - - - - - - - - Other revenues - - - - - - - - - - - - Total Revenues - - - - 30,273 92,093 155,143 219,443 221,941 224,464 227,012 229,586 Expenditures Current - Economic development - - - - - - - - - - - - Total Expenditures - - - - - - - - - - - - Net Change in Fund Balances - - - - 30,273 92,093 155,143 219,443 221,941 224,464 227,012 229,586 Ending Fund Balance - - - - 30,273 122,366 277,509 496,952 718,893 943,357 1,170,369 1,399,955 Assets Cash and investments - - - - 30,273 122,366 277,509 496,952 718,893 943,357 1,170,369 1,399,955 All other receivables and prepaid items - - - - - - - - - - - - Total Assets - - - - 30,273 122,366 277,509 496,952 718,893 943,357 1,170,369 1,399,955 Liabilities All other liabilities - - - - - - - - - - - - Total Liabilities and deferred inflows - - - - - - - - - - - - Fund Balance - - - - 30,273 122,366 277,509 496,952 718,893 943,357 1,170,369 1,399,955 Total Liab, deferred inflows, and fund balance - - - - 30,273 122,366 277,509 496,952 718,893 943,357 1,170,369 1,399,955 119 Appendix D City of Monticello Debt Service Tax Levy Summary Tax Collection Year Levy for Existing Debt Levy for Planned New Debt Total Levy Annual % Change 2023 1,999,581 - 1,999,581 -13.5% 2024 2,026,175 - 2,026,175 1.3% 2025 2,259,248 2,312,214 4,571,462 125.6% 2026 2,367,571 2,690,073 5,057,644 10.6% 2027 1,970,622 2,679,810 4,650,432 -8.1% 2028 1,794,231 2,678,865 4,473,096 -3.8% 2029 1,600,096 2,681,096 4,281,192 -4.3% 2030 1,585,702 2,686,241 4,271,943 -0.2% 2031 1,186,469 3,074,456 4,260,925 -0.3% 2032 1,181,043 3,002,764 4,183,807 -1.8% 2033 413,543 2,999,693 3,413,236 -18.4% 2034 409,530 3,004,339 3,413,869 0.0% 2035 - 3,005,704 3,005,704 -12.0% 2036 - 3,009,090 3,009,090 0.1% 2037 - 3,008,933 3,008,933 0.0% 2038 - 3,010,481 3,010,481 0.1% 2039 - 3,013,448 3,013,448 0.1% 2040 - 3,017,674 3,017,674 0.1% 2041 - 3,022,819 3,022,819 0.2% 2042 - 3,018,199 3,018,199 -0.2% 2043 - 3,024,998 3,024,998 0.2% 2044 - 3,026,756 3,026,756 0.1% 2045 - 3,028,673 3,028,673 0.1% 2046 - 3,030,536 3,030,536 0.1% 2047 - 3,030,536 3,030,536 0.0% 2048 - 3,030,536 3,030,536 0.0% 2049 - 3,030,536 3,030,536 0.0% 120 $0 $10 $20 $30 $40 $50 $60 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% Appendix E Residential Example Monthly Water Bill 10,000 Gallon Monthly Volume Billed Monthly Bill Annual Percent Change $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Appendix F Residential Example Monthly Sanitary Sewer Bill 10,000 Gallon Monthly Volume Billed Monthly Bill Annual Percent Change $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Appendix G Residential Example Monthly Stormwater Bill 1 Unit Monthly Bill Annual Percent Change $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 3.4% 3.6% 3.8% 4.0% 4.2% 4.4% 4.6% 4.8% Appendix H Residential Example Monthly Bill -Combined for Water, Sanitary Sewer, and Stormwater 10,000 Gallons of Volume and 1 Unit for Stormwater Stormwater Water Sanitary Sewer Annual Percent Change