2025 City of Monticello Budget
2025 Adopted Budget
City of MonƟcello, Minnesota | 505 Walnut Street • 763-295-2711 • MonƟcelloMN.gov
Table of Contents
Introduction and Overview
Directory of Public Officials ...................................................................................................... 1
Distinguished Budget Presentation Award .............................................................................. 2
Strategic Goals & Strategies ..................................................................................................... 3
Priorities & Issues ...................................................................................................................12
Budget Overview .................................................................................................................... 16
Organization Chart ................................................................................................................. 31
Financial Structure, Policy & Process
Fund Descriptions & Structure............................................................................................... 32
Departments & Funds Relationship ....................................................................................... 35
Basis of Budgeting .................................................................................................................. 36
Financial Policies .................................................................................................................... 37
Budget Development & Administration Practices ................................................................ 37
Revenue Collection Practices ................................................................................................ 39
Expenditures and Payments Practices .................................................................................. 39
Capital Assets Policy .............................................................................................................. 41
Debt Administration Practices ............................................................................................... 41
Reserves and Fund Balances Policy ....................................................................................... 42
Financial Reporting & Accounting Practices .......................................................................... 43
Cash Management & Investment Policy ............................................................................... 44
Balanced Budgets Practices ................................................................................................... 52
The Budget Process ................................................................................................................ 54
Financial Summaries
Consolidated Financial Schedules
All Funds Summary By Fund Type ......................................................................................... 57
Revenues By Category and Fund Type ................................................................................. 59
Appropriations By Category and Fund Type.......................................................................... 61
Interfund Transfers ................................................................................................................ 63
Three Year Consolidated and Fund Financial Schedules
All Funds Summary By Year ................................................................................................... 64
Fund Balance/Working Capital .............................................................................................. 66
Changes in Fund Balance/Working Capital ........................................................................... 67
Ending Fund Balance/Working Capital History ..................................................................... 68
Revenue Sources By Fund
Revenue Trends & Analysis ................................................................................................... 69
Tax Levy History ..................................................................................................................... 77
Tax Capacity History .............................................................................................................. 78
Largest Property Taxpayer ....................................................................................................79
Revenues Sources By Fund .................................................................................................... 80
Long Range Financial Plans .................................................................................................... 82
Long-Term Fiscal Objectives .................................................................................................. 89
Capital & Debt
Capital Expenditures & Capital Improvement Plan ............................................................... 92
Funding Source Summary ...................................................................................................... 99
Projects By Funding Sources And Department ................................................................... 100
Debt ...................................................................................................................................... 105
Departmental Information
Staffing Summary ................................................................................................................. 108
General Fund – Summary .................................................................................................... 109
General Government
Mayor and City Council (101-41110) ................................................................................ 112
City Administration (101-41310) ...................................................................................... 113
City Clerk (101-41410) ...................................................................................................... 115
Finance (101-41520) ......................................................................................................... 117
Legal (101-41610) ............................................................................................................. 119
Human Resources (101-41800) ........................................................................................ 120
Planning, Zoning & Community Development (101-41910) ............................................ 122
City Hall (101-41940) ........................................................................................................ 125
Public Safety
Law Enforcement (101-42100) ......................................................................................... 126
Fire & Rescue (101-42200) ............................................................................................... 128
Fire Relief (101-42202) ..................................................................................................... 130
Building Inspections (101-42400) ..................................................................................... 131
Emergency Management (101-42500) ............................................................................ 133
Animal Control (101-42700) ............................................................................................. 134
National Guard (101-42800) ............................................................................................ 135
Public Works
Public Works Administration (101-43110) ....................................................................... 136
Engineering & Inspections (101-43115) ........................................................................... 137
Streets & Alleys (101-43120) ............................................................................................ 139
Ice & Snow Removal (101-43125) .................................................................................... 140
Shop & Garage (101-43127) ............................................................................................. 141
Street Lighting (101-43160) .............................................................................................. 143
Refuse Collection (101-43230) ......................................................................................... 144
Recreation and Culture
Senior Center (101-45175) ............................................................................................... 145
Park Operations (101-45201) ........................................................................................... 146
Park Ballfields (101-45203) .............................................................................................. 147
Public Arts (101-45204) .................................................................................................... 148
Library (101-45501) .......................................................................................................... 149
Shade Tree (101-46102) ................................................................................................... 150
Special Revenue Funds – Summary ..................................................................................... 151
Cemetery Fund (215-49010) ............................................................................................... 152
Small Cities Development Program (SCDP) Fund (221-46500) ........................................... 154
Community Center Fund (226-4512x) ................................................................................. 155
Debt Service Funds – Summary ........................................................................................... 157
2015B G.O. Bond Sub-Fund (319-47000) ............................................................................ 158
2016A G.O. Bond Sub-Fund (320-47000) ............................................................................ 160
2017A G.O. Bond Sub-Fund (321-47000) ............................................................................ 162
2018A G.O. Bond Sub-Fund (322-47000) ............................................................................ 164
2019A G.O. Bond Sub-Fund (323-47000) ............................................................................ 166
2020A G.O. Bond Sub-Fund (324-47000) ............................................................................ 168
Closed Debt Service Funds .................................................................................................. 170
Capital Project Funds – Summary ........................................................................................ 171
Capital Project Fund (400-4xxxx) ......................................................................................... 172
Street Lighting Improvement Fund (403-43162) ................................................................. 174
Park & Pathway Improvement Fund (404-45202) .............................................................. 175
Park Dedication Fund (405-45202) ...................................................................................... 176
Bertram Chain of Lakes Sales Tax Fund (406-45202) .......................................................... 177
Enterprise Funds – Summary ............................................................................................... 179
Water Fund (601-4944x) ..................................................................................................... 180
Sewer Fund (602-49480 & 602-4949x)................................................................................ 182
Stormwater Fund (652-4948x) ............................................................................................ 186
Liquor Fund (609-4975x) ..................................................................................................... 188
Deputy Registrar Fund (653-41990) .................................................................................... 190
Fiber Optics Fund (656-4987x) ............................................................................................ 192
Internal Service Funds – Summary ...................................................................................... 195
Facilities Maintenance Fund (701-00000) ........................................................................... 196
IT Services Fund (702-00000) .............................................................................................. 198
Central Equipment Fund (703-00000) ................................................................................. 200
Benefit Accrual Fund (704-00000) ....................................................................................... 202
Discretely Presented Component Unit Fund – Summary .................................................... 205
Economic Development Authority Fund (213-46301) ........................................................ 206
Appendix
Community, Demographic, and Statistical Information ...................................................... 209
Property Tax Basics .............................................................................................................. 212
Truth-in-Taxation (TNT) ....................................................................................................... 215
Debt Guide ........................................................................................................................... 216
Minnesota Statutes .............................................................................................................. 225
Utility Rates for 2025 ........................................................................................................... 229
Capitalization Thresholds & Useful Lives ............................................................................. 230
Tax Capacity, Tax Levy, & Tax Rate History.......................................................................... 231
Useful Terms (Glossary) ....................................................................................................... 232
Acronyms ............................................................................................................................. 241
DIRECTORY OF PUBLIC OFFICIALS
MAYOR & CITY COUNCIL
Position Name Term Expires Contact Information
Mayor Lloyd Hilgart 12/31/2026 Lloyd.Hilgart@MonticelloMN.gov
Council Charlotte Gabler 12/31/2026 Charlotte.Gabler@MonticelloMN.gov
Council Tracy Hinz 12/31/2026 Tracy.Hinz@MonticelloMN.gov
Council Kip Christianson 12/31/2028 Kip.Christianson@MonticelloMN.gov
Council Lee Martie 12/31/2028 Lee.Martie@MonticelloMN.gov
CITY STAFF
City Administrator ............................................................ Rachel Leonard
Public Works Director/City Engineer ................................... Matt Leonard
Finance Director ......................................................... Sarah Rathlisberger
Community Development Director .............................. Angela Schumann
Parks, Arts & Recreation Director .......................................... Tom Pawelk
City Clerk ...................................................................... Jennifer Schreiber
Human Resources Manager ................................................... Tracy Ergen
Communications Specialist .......................................... Stephanie Trottier
Street Superintendent ........................................................ Mike Haaland
Parks Superintendent .................................................... Josh Berthiaume
Utilities Superintendent ............................................................ Mat Stang
Finance Manager ..................................................................... Liz Lindrud
Deputy Registrar Manager .............................................. Carolyn Granger
Liquor Store Manager ..................................................... Randall Johnsen
Community Center Program & Operations Manager .............. Sara Cahill
Economic Development Manager ............................................ Jim Thares
Chief Building Official .......................................................... Bob Ferguson
Fire Chief ............................................................................... Jake Olinger
EXTERNAL CONSULTANTS
Wright County Sheriff ........................................................ Sean Deringer
Grittman Consulting .......................................................... Steve Grittman
Northland Securities Financial Advisor ............................... Tammy Omdal
Veolia Environmental Services ............................................. Ross Stevens
Fibernet Management Services ............................ Arvig Communications
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DISTINGUISHED BUDGET PRESENTATION AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) presented
an award of Distinguished Budget Presentation to the City of Monticello for its annual budget for
the fiscal year beginning January 1, 2024. The city has submitted its budget for consideration
since 2009 and has received this award each year.
To receive this award, a governmental unit must publish a budget document that meets program
criteria as a policy document, an operations guide, a financial plan, and a communications
device.
This award is valid for a period of one year only. We believe our current budget continues to
conform to program requirements, and we are submitting it to GFOA to determine its eligibility
for another award.
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
City of Monticello
Minnesota
For the Fiscal Year Beginning
January 01, 2024
Executive Director
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STRATEGIC GOALS & STRATEGIES
The City of Monticello continues to use strategic planning as an important mechanism for
balancing the needs and wants of the community with sound fiscal management. Strategic
planning is also the first step in the annual budget process. Annually, the City Council
meets to reaffirm or adjust priorities and policy positions and to align these overarching
goals with direction for city staff.
Leadership staff developed the city’s Mission Statement, Strategic Goals, and Core Values,
which were affirmed by the Council at the strategic planning worksession in 2021. The
goals were formed from feedback received from residents related to two major
characteristics of Monticello: just over one-third of the tax base is reliant on an electric-
generating plant and the city originated from a river settlement with a strong community
connection to history. The city is tasked with balancing the need to replace tax base that
will eventually go away in the future when the power plant closes with the desire to
maintain its community character.
•The City of Monticello responsibly manages our resources to provide quality
services and programs, creating a dynamic community by building on our
strengths and investing in our future.
Mission Statement
1.Maintain a Balanced & Thriving Community
2.Harness Incremental Growth
3.Facilitate a Stable, Expanding Tax Base
4.Support a Connected Community, Investing in People and Partnerships
5.Reinvest in Existing Assets to Protect their Value
Strategic Goals
•Leadership
•Stewardship
•Responsiveness
•Integrity
•Community
Core Values
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The worksession in 2021 also brought about the idea of the “Big 6” (in no particular order):
•Investment in the city’s downtown with a focus on Blocks 52 and 34
•A new operations, maintenance, and storage facility for the Public Works department
•The Pointes at Cedar (formerly known as Chelsea Commons) 100-acre development &
recreation area
•Bertram Chain of Lakes Regional Park, a joint venture with Wright County of which the
city is responsible for the athletic park area
•A Water Treatment Facility to treat the city’s water supply
•Fallon Avenue Improvements, including trunk lines that are necessary for future
development to the South and for increased pedestrian safety
Through the 2025 budget process, the Council and staff considered the impact these projects
would have on the next 5-10 years. While these are long-term projects, the city’s 2025 budget
supports continuation of four of these projects, while others are on hold until triggered by
development or external funding. A desire for sustainable growth, as highlighted in the city’s
Monticello 2040 Comprehensive Plan, continues to drive decision making along with a funding
approach that will avoid large impacts to the property tax levy each year without delaying vital
projects.
The city has completed numerous plans to help guide future growth and spending priorities. A
chance to develop additional planning for the future decommissioning of the Xcel Energy
Nuclear Generating Plant, which makes up just under half of the city’s tax base, became a
reality in 2021 when the city was awarded a grant from the MN Department of Employment
and Economic Development as part of its Community Energy Transitions (CET) grant program.
The city was able to engage in studies to help determine the most advantageous growth areas
along with recommendations on the best ways to execute the plans.
Downtown
Revitalization
New Public
Works Facility
The Pointes at
Cedar
Bertram Chain
of Lakes
Regional Park
Development
Fallon Avenue
Improvements
Water
Treatment
Facility
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Plans for service provision and growth & development:
1.Monticello 2040 Vision + Plan (Comprehensive Plan) – Adopted 2020.
The Comprehensive Plan is a tool for guiding the growth, redevelopment, and improvement of
Monticello over the next 20 years. As the City’s blueprint for growth and guide to decision
making, the comprehensive plan is the foundation upon which decisions about community
growth and development are based. Development of the Monticello 2040 Vision + Plan began in
2019 with significant community engagement in the visioning phase, which resulted in the
adoption of the 2040 Community Vision Statement:
“In 2040 the City of Monticello is an inclusive community focused around sustainable growth
while maintaining its small-town character. Monticello is a Mississippi River town known for its
schools, parks, biking and walking trails and vibrant downtown. Monticello is an evolving,
friendly, and safe community that respects the quality of its environment, fosters a sense of
belonging and connection, encourages a healthy and active lifestyle and supports innovation to
promote a prosperous economy.”
The vision, value statements and preferred development scenario were fundamental to the
establishment of the Comprehensive Plan during the second phase of the planning process. The
Comprehensive Plan provides a set of goals, policies, and strategies for achieving Monticello’s
vision for the future. The Plan includes chapters focusing on land use, transportation, parks and
open space, economic development, community character, community Infrastructure and
implementation.
2.Mobility & Connectivity
The city’s Transportation Plan is encompassed within Chapter 4 of the Monticello 2040 Plan, and
is a guide that outlines the goals, policies, and transportation strategies to improve mobility and
connectivity in Monticello by continuing to build a safe and efficient multimodal transportation
system that strengthens the economy and enhances quality of life. Ongoing major transportation
efforts include:
•Continued evaluation of collector street network improvements for safety, intersection,
and congestion improvements.
•Work with regional and state partners on alternatives and projects related to Highway
25 congestion relief and I-94 capacity expansion.
•Extension of School Boulevard west from current terminus.
•Installation of new roundabout locations throughout the city.
•Street improvements from rural to urban standards for certain streets including Fallon
Avenue, and Edmonson Avenue, among others.
3.Parks & Pathways Plan – Adopted 2011, Update in Progress.
The Monticello Parks and Pathways Plan identifies the city’s objectives for park, pathway, and
recreation planning and development. The Plan also identifies strategies for building on and
maintaining the existing parks infrastructure. The city completed a Pathway Connections map, a
planning document related to pathway connections within the larger system in direct response
to the objectives identified within the plan. The 2040 Plan provides updates but does not
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duplicate the detailed analysis in this plan. A Parks Master Plan is recommended by the
Monticello 2040 Plan to update the detailed portion of this plan, which will conclude in 2025
with adoption by the city council after planning began using consultant Bolton & Menk in late
2022.
4.Bertram Chain of Lakes Regional Park Master Plan – Adopted 2016.
The Bertram Chain of Lakes Regional Park Master Plan was adopted in 2016, highlighting its
importance in the Monticello 2040 Comprehensive Plan and the 2011 Park & Pathway Plan as a
vital aspect of community quality of life. The initial concept for the regional park and athletic
complex was established in 2011, leading to the approval of a Master Plan for the athletic
complex in 2016. Phase I, completed in 2019, focused on essential park infrastructure, including
a water reuse pond, grading, wells, parking, and access roads. Phase II, finalized in 2024,
introduced ADA-compliant gravel trails and parking, along with various recreational support
facilities and transportation improvements.
The athletic park features adaptable open fields suitable for multi-sport, attracting numerous
local teams to establish their home fields following the 2019 upgrades. Phase II enhancements
included a new gravel entrance, parking lot, water fountains, temporary restrooms, and
extended irrigation lines. Future developments will aim to further enhance infrastructure for
both players and spectators.
A Local Option Sales Tax, approved by city residents in November 2024, will be implemented on
April 1, 2025, to fund improvements at the Bertram athletic park. The tax will last the shorter of
20 years or until $15 million has been raised. Future park improvements can be completed by
issuing bonds or using a pay-as-you-go approach.
5.Downtown Small Area Plan – Adopted 2017.
The Downtown Small Area Plan is an implementation plan which integrates market,
transportation, and land use considerations for the purpose of creating a vibrant downtown
district. The Plan states that “The purpose…is to attract and direct investments on the core
blocks of Downtown Monticello, MN over the next 10 years. The Plan advocates for solidifying
Downtown as the heart of the community with a series of coordinated public and private
investments. Together, these investments will create a human-scaled environment that
encourages gathering, socializing, visiting and enjoying on a daily basis - throughout the year.
The improvements outlined in this Plan aim to build on the unique qualities of Monticello to
make the Downtown more attractive to those who have chosen to live and do business in the
community.” The city and Economic Development Authority utilize the Downtown Small Area
plan to implement strategies to realize plan goals. The Small Area Plan has led to further
planning in the Downtown Area, including adoption of Walnut Street Corridor Plan, which
guides investment and improvement for Walnut Street between the river and I-94. The
Downtown Small Area Plan is incorporated in the Monticello 2040 Vision +Plan (Comprehensive
Plan).
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6.The Pointes at Cedar Small Area Plan – Adopted 2022.
Following the update to the City’s Comprehensive Plan in 2020, which highlights the desire to
grow from within, The Pointes at Cedar Master Plan was developed to guide the preparation of
plans and specifications for construction of the public park and open space improvements in the
area between Cedar Street, Edmonson Avenue, Chelsea Road, and School Boulevard. A Small
Area Plan for The Pointes at Cedar was adopted in September 2021. The Pointes at Cedar Small
Area Plan focuses on the potential development of a prominent land area in the core of
Monticello as an exceptional mixed-use neighborhood in which to live, work and play. The
Pointes at Cedar is centered on a recreational water feature and surrounded by a series of
interconnected public spaces. The Plan is designed to encourage private development that
builds on the distinctive public areas within The Pointes. The Small Area Plan provides a guide
for both public and private investments in the development area. Following adoption of the
Small Area Plan, the city completed a planning process for the public areas of the development
project area, which led to the adoption of The Pointes at Cedar Master Plan. The Master Plan is
intended to provide greater detail on the public spaces anchoring the project, including the
identification and location of amenities and recreational features. The Master Plan then serves
as the foundation for the development of plans and specifications for the public improvements
at The Pointes. The Pointes is intended to be a long-term development and growth opportunity.
7.Strategic Transition Plan – Adopted 2022.
The Strategic Transition Plan (STP) is the culmination of the numerous studies and plans
completed by the city in 2021 and 2022 using the aforementioned CET grant dollars. Because
the City’s largest taxpayer is an electric-generating facility, the STP connects these plans and
previously adopted policy documents by evaluating their content for specific strategies that will
support a successful transition away from an energy-based economy. The STP is a document
identifying implementation measures from each plan which supports a sustained and successful
transition effort. The desired document would also draw relationships between the new and
previously adopted studies as they relate to community transition.
8.Comprehensive Water System Plan – Updated 2022.
A water distribution system model was created to evaluate the existing water system. The water
system plan was then developed using this model to identify water system capital
improvements necessary to serve future land use designations in accordance with the city’s
Comprehensive Plan. In 2022, the city conducted an analysis of its water system to determine
improvements necessary for future expansion of the city. These improvements include necessary
water main improvements, trunk lines, additional storage, and other water distribution assets.
9.Comprehensive Sanitary Sewer System Plan – Updated 2022.
The sanitary sewer comprehensive plan identifies the existing sanitary sewer system and
projected future wastewater flows and service areas based on future land use designations in
accordance with the city’s Comprehensive Plan. Several individual sanitary sewer studies were
developed after the adoption of this plan in response to development. The Sanitary Sewer Plan
was updated in 2022 as a concentrated effort to provide the City of Monticello with working
knowledge of the flow characteristics of the sanitary sewer system, identify issues, concerns, or
7Table of Contents
deficiencies with the collection system, and recommend changes or improvements that would
address issues and benefit system operation for the long term.
10.Storm Water Pollution Prevention Program – Adopted 2007.
In 2005 the City of Monticello was designated as a regulated small municipal separate storm
sewer system (MS4) under Minnesota Rules, Chapter 7090. This required the city to obtain a
National Pollutant Discharge Elimination System/State Disposal System (NPDES/SDS) storm
water permit, and to develop and implement a Storm Water Pollution Prevention Plan (SWPPP)
to reduce the discharge of pollutants, including sediments, from our storm sewer system to the
maximum extent practicable.
The city is continuing to implement the required six minimum control measures (MCM’s) as
follows:
A.Public Education and Outreach,
B.Public Participation and Involvement,
C.Illicit Discharge Detection and Elimination,
D.Construction Site Stormwater Runoff Control,
E.Post-Construction Stormwater Management Measures; and,
F.Pollution Prevention/Good Housekeeping Measures.
Zoning, subdivision, and illicit discharge ordinances were adopted related to grading, drainage,
erosion control, and storm water management to meet current MPCA requirements per the
city’s new MS4 permit issued on October 29, 2021.
11.Comprehensive Water Resource Management Plan – Updated 2019.
The Comprehensive Water Resource Management Plan was developed to meet local watershed
management planning requirements of the Metropolitan Surface Water Management Act and
Board of Water and Soil Resources Rules 8410. It was formed in conformance with the
requirements of the Metropolitan Council, and applicable State and Federal laws. The plan and
its referenced literature are intended to provide a comprehensive inventory of pertinent water
resource related information that affects the city and management of those resources.
12.Wellhead Protection Plan (Part 1 and 2) – Completed 2016.
The goal of the Wellhead Protection Plan is to prevent human-caused contaminants from
entering the water supply wells and to protect all who use the water supply from adverse health
effects associated with groundwater contamination. The preparation of the city’s plan was
required by Minnesota Rules 4720.5100 to 5720.5590. Part 1 was completed in 2015, and Part 2
was completed in 2016. The plan is anticipated to be updated by 2026 as determined by the
Minnesota Department of Health.
13.Plan Requirements and Design Guidelines (“Design Manual”) – Updated 2022.
These guidelines were established for developers of property within the City of Monticello. The
guidelines provide design standards, specifications, and detail plates for the design of
infrastructure improvements, street, utility, and site work construction.
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These guidelines are referenced in the city’s zoning and subdivision ordinances related to
grading, drainage, erosion control, and storm water management. The Design Manual is
updated as needed for new design regulations and requirements.
14.General Specifications and Standard Detail Plates for Street and Utility Construction –
Updated 2017.
These specifications represent the city’s requirements for construction of public streets and
utility systems.
15.Interchange Planning Study – Ongoing.
The Interchange planning study will determine a reasonable location or locations for a future I-
94 Interchange within the city west of TH 25. The Monti:2040 Comprehensive Plan recognizes
that Northwest Monticello, which includes the CSAH39 to Orchard Road corridor, is a primary
focus for future development and further cites the Future Interchange as a critical component of
understanding growth potential and land use in the Northwest Area. However, the feasibility of
development to the East side of city limits was also studied.
16.Central Mississippi River Regional Planning Partnership (CMRP) – Ongoing.
A joint power agreement was adopted in 2015, with a shift in focus from strictly transportation
to broader regional planning taking place a few years later. A TH 25 area transportation study
was completed in 2018 and identified options for near-term and long-term improvements to the
corridor. Wright and Sherburne Counties initiated a Planning & Environmental Linkage (PEL)
Study in 2024, and the group is working on obtaining 501(c)(3) status.
17.Natural Resource Inventory & Assessment – Adopted 2008.
The purpose of the Natural Resource Inventory and Assessment (NRI/A) is to identify existing
natural resources within the City of Monticello and its growth area (the Monticello Orderly
Annexation Area), inventory these resources, and assess the resource quality. These resources
are then considered and evaluated during growth/development.
18.Economic Development Strategic Workplan – Updated 2022.
The EDA adopts a strategic workplan annually, which directs EDA staff focus and resources over
the following three years. The current workplan was effective for 2022-2024, and the EDA is in
the process of creating the 2025-2027 Workplan.
Plans for Facility and Infrastructure Maintenance:
1.Wastewater Treatment Facility Plan – Updated 2022.
The Wastewater Treatment Facility Plan was updated to provide recommendations to address
aging infrastructure and future treatment requirements. Capital improvements identified
include the demolition of obsolete equipment and installation of an influent lift station and grit
removal, a gasifier tank, and long-term improvement of an additional SBR tank.
2.Overall Street Reconstruction Program – Adopted 2004, ongoing as part of capital
improvement plan.
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The 2025-2029 Capital Improvement Plan includes projects related to the program, with various
projects planned throughout the city, which typically occur every other year.
3.New Water Treatment Plant
Tests of the city’s municipal water supply showed manganese levels above guidelines from the
Minnesota Department of Health (MDH) in 2018. The city stopped using the well with the
highest levels of manganese and began educating the public on strategies to mitigate impacts.
Simultaneously, the city began applying for federal and state funding to contribute to the
significant cost of building a central water treatment plant.
The city was successful in receiving $11 million in funding via the State’s bonding bill in 2023.
However, with cost projections continuing to rise due to inflation, the city continues to request
additional funding at both the state and federal levels. Conditions of the original state funding
require the city to use the funds by 2028, so design and engineering on the plant is underway as
the funding mix is identified.
4.New Public Works Facility
The city completed a study of the public works facility in 2007 which identified the need for
additional storage and more efficient configuration of the public works department. Due to the
recession shortly thereafter, the project never gained traction but was recently revived because
of need. Concept plans have been drafted, and land was purchased in 2021 for the future
facility. An architect was hired in late 2022 for design of the facility, a construction manager
was brought on board in 2023. Due to current lack of funding, the project is on hold with
construction tentatively proposed to begin in 2027.
5.Transportation Projects
TH 25 Pavement Preservation Project – MNDOT has a planned pavement preservation project in
2030 for TH 25 from Big Lake to the I-94 interchange. To prepare for this project, MNDOT is
completing a corridor study to identify potential improvements that may be included in the
project to increase capacity and safety along this corridor.
The city was successful in securing grant funding for improvements to School Boulevard from
TH25 to Country Lane including the construction of roundabouts at Cedar Street and Edmonson
Avenue. This project is scheduled to be completed in 2025.
Finally, the city was awarded grant funding to improve pedestrian safety along Golf Course
Road (County Road 39) West from Elm Street to 7th Street. Design began in 2024 with
construction planned for 2025.
Financial Plans:
1.Annual Budget - Adopted each December.
2.Capital Improvement Plan - Updated and adopted each year as part of the budget process;
most recently for 2025 -2029.
3.Long-term Financial Management Plan – Updated annually.
10Table of Contents
This first phase of the Comprehensive Plan
process, the Visioning phase, included a
community engagement process to identify
common values, growth aspirations and a vision
to inform the planning direction for the next
20 years. The vision, value statements and
preferred development scenario will serve as the
foundation for creating the new Comprehensive
Plan during the second phase of the planning
process. The Comprehensive Plan provides a set
of goals, policies and strategies for achieving
Monticello’s vision for the future.
PHASE ONE | JANUARY 2020
In 2040 the City of Monticello is an inclusive community focused around sustainable
growth while maintaining its small-town character. Monticello is a Mississippi River
town known for its schools, parks, biking and walking trails and vibrant downtown.
Monticello is an evolving, friendly and safe community that respects the quality of its
environment, fosters a sense of belonging and connection, encourages a healthy and
active lifestyle and supports innovation to promote a prosperous economy.
A balanced land use and transportation framework that provides options and connectivity.
A range of attainable housing options in terms of type, cost, and location.
A respected school and education system serving the community.
A healthy community focused on physical and mental health and wellness of its residents.
A safe, clean, and beautiful community
supported by caring and helpful residents.
A network of parks, open space and trail connections that provide recreation opportunities.
An inclusive community welcoming people of all ages, races, religions and ethnic backgrounds.
A diversified and strong local economy competitive at regional, state and national levels.
A vibrant downtown that embraces the River and provides a focal point for the community.
A thriving arts and culture scene that reflects the creativity of the community and supports a sense of place.
VISION STATEMENT
VALUE STATEMENTS
VISIT
CI.MONTICELLO.MN.US/MONTI2040
TO LEARN MORE!
PREFERRED SCENARIO
PRIORITYGREENWAYSMIXED RESIDENTIAL/COMMERCIAL
INDUSTRIALCOMMERCIAL
PLANNED DETACHED
RESIDENTIAL DEVELOPMENT INTERCHANGE
LEGEND:DETACHED RESIDENTIAL
MIXED COMMERCIAL/OFFICE/LIGHT INDUSTRIALATTACHED RESIDENTIAL RIVER
ACCESS
• Sustainability - Focus on sustainability, open space and wetland
preservation throughout City.
• Infill Development - New service commercial and light industrial infill.
• Conservation Neighborhoods - Single-family housing developed as
conservation subdivisions in a clustered fashion mitigating impacts to
sensitive areas.
• Industrial Expansion - Full build out and expansion of Otter Creek
Industrial Park and growth around future Interchange.
• Multi-Family Housing - New multi-family infill development near core
of downtown and other focus areas.
• New School - New elementary and middle school campus with
environmental focus.
• Downtown - Downtown plan implementation thriving with new
commercial, mixed-use and public realm improvements.
• Mississippi River - Focus on River with new access, connections and
riverfront trail.
• New Employment Center - New industrial business park developed
around new interchange with green technology, renewable energy,
manufacturing and other uses.
• Xcel Facility - The Xcel Monticello Nuclear Generating Plant is
licensed through 2030 and will seek relicensing to 2040.
• Annexation Area - Portions of the Orderly Annexation Area are
designated as an Urban Reserve for future development. Development
would likely include conservation single-family cluster subdivisions.
Note: The Preferred Scenario guidance and mapping provided in the Vision
Report will be further refined during the Comprehensive Plan process. This
map is not the City of Monticello’s final Land Use Plan. This map provides
initial guidance for the next phase of the project, the Comprehensive Plan,
and will be further detailed and refined.
The preferred development scenario is the result of community feedback on the four previous scenarios and the community’s vision.
The community envisions Monticello in 2040 as an environmentally and economically sustainable community that has experienced
strong, balanced growth.
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Development Assumptions
Key Preferred Scenario Aspects
URBANRESERVE
INCREMENTAL, SUSTAINABLE Growth Scenario
Downtown Focus
New School
Industrial and Employment
Conservation Neighborhoods
Retail and Commercial
Trails and Open Space
VISIT
CI.MONTICELLO.MN.US/MONTI2040
TO LEARN MORE!
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NORTHSTARLINE BIG LAKE
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COUNTY RD 39 NECOUNTY RD 39 NE
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Downtown Mixed Use10-18 Unit/Acre10-18 Unit/Acre
Service Commercial and Light Industrial Infill
Regional Oriented Commercial
Multi-Family10-18 Unit/Acre10-18 Unit/Acre
Medium and Small Lot Conservation Developments4-10 Units/Acre4-10 Units/Acre Potential School Site withEnvironmental Focus
Medium and Small Lot Conservation Developments4-10 Units/Acre4-10 Units/Acre
Otter Creek
Industrial Park
Commercial/Residential Mix (Neo Traditional) Development
Residential (South) Residential (South) 8-10 Units/Acre8-10 Units/Acre
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Technology, Renewable Energy,
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11Table of Contents
PRIORITIES & ISSUES
The city’s priorities were redefined in the Monti:2040 Comprehensive Plan adopted in 2020.
This Comprehensive Plan highlights the city’s desire to grow from within before expanding out
by focusing on three key themes: Sustainability, Community Health and Sense of Place. The
Comprehensive Plan is the primary influence in financial planning.
After years of adapting due to impacts from the COVID-19 pandemic, the city’s 2025 budget
reflects a more routine approach to operations while at the same time retaining efficiencies
and other strategies discovered during the pandemic. While the city has mainly returned to
routine levels of service and funding, the Community Center Fund was slower to rebound.
Revenues in the Community Center Fund are close to pre-pandemic levels, however, the costs
to generate that level of revenue have increased greatly. As is fiscally responsible, revenues are
budgeted conservatively, and expenditures are estimated liberally to ensure sound financial
position.
The American Rescue Plan Act of 2021 (ARPA) provided just over $1.5 million directly to the
city. All ARPA funds were used in 2021 through 2023 for wages and benefits at the Monticello
Community Center. Going forward, the Deputy Registrar Fund has been identified as a source of
financial support to the Community Center Fund while opportunities for additional revenue or
decreased expenditures are examined.
The city changed its strategy for budgeting in 2021 from a department-by-department
approach to an entity-wide “bucket” or “pieces of a puzzle” approach including the following
areas:
Noteworthy changes in service levels and fees include:
Personnel:
•Overall: A 3.5% cost-of-living adjustment (COLA) was applied to the wage scales in 2025.
Budget impact: $216,700.
Personnel
Notable Operating Expenditures
Equipment
Capital Projects
12Table of Contents
•Development Services: Creation of an additional administrative support position.
Budget impact: $92,000.
•Fire Department: Increase to officer stipends. Budget impact: $10,000.
•Community Center: Reduction in budget for the reclassification of the part-time League
Manager position to a Recreation Coordinator. Budget impact: -$32,000.
Notable Operating Expenditures:
•City Clerk: Reduction due to lack of elections in 2025. Budget impact: -$54,100.
•City Hall: Study of City Hall layout to maximize building space. Budget impact: $25,000.
•Human Resources: Included funding for a compensation study in 2025, with any
adjustments effective with the 2026 budget. Budget impact: $20,000.
•Planning & Zoning: Included funding for a park dedication study. Budget impact:
$50,000.
•Finance/IT: Implementation of an Accounts Payable (AP) Workflow module in
Laserfiche. Budget impact: $30,000.
•Library: Update to the building’s fire system. Budget impact: $11,000.
•Shade Tree: Inventory and treatment of Emerald Ash Borer (EAB) infected trees. Budget
impact: $100,000.
Equipment:
•Fire: The fire department, through the Central Equipment Fund, budgeted for a
replacement utility vehicle and UTV. Budget impact: $100,000.
•Streets: The streets department, through the Central Equipment Fund, budgeted for a
hydraulic snow blower, front loader, and paver trailer. Budget impact: $315,000.
•Parks Operations: The parks operations department, through the Central Equipment
Fund, budgeted for two pickups, and a field line painter. Budget impact: $230,000.
•Water: The water department budgeted for a replacement pickup. Budget impact:
$75,000.
•Community Center: Replacement of various pieces of cardio equipment. Budget impact:
$20,000.
Capital Projects:
•City Facilities – Water Treatment Plant: Continued planning and design of a new water
treatment plan. Budget impact: $1,000,000.
•City Facilities – Other: Replace roofs on well houses and wastewater treatment plant
buildings and improvements to the Monticello Community Center, including an upgrade
to the jase system, installation of a door from the Rom & Stomp play area to the
hallway, and window replacement. Budget impact: $501,000
•Golf Course Road West Pedestrian Trail: Planning began in 2024 with construction
planned in 2025. Budget impact: $1,600,000, with $800,000 in grant funding.
•Utilities Infrastructure – West County Rd 39 Extension: Extension of water and sewer
trunk lines from Chelsea Road to the west. Budget impact: $4,130,000, with $1,000,000
in grant funding.
ϭϯTable of Contents
•Utilities Infrastructure – Other: Rehabilitation and improvements to a failing ditch to
the east of the city, expansion of the stormwater pond in the Otter Creek industrial
park, and fiber extensions into new neighborhoods. Budget impact: $2,750,000.
•Downtown – West Bridge Park: Replace existing playground at West Bridge Park with
new and expanded equipment with greater accessibility. Budget impact: $650,000,
which $250,000 paid for with private donation.
•The Pointes at Cedar – School Boulevard Improvements and Roundabouts: Construct
two roundabouts on School Boulevard at the intersections with Cedar Street and
Edmonson Avenue and repave the section of School Boulevard from Hwy 25 to Country
Lane. Budget impact: $3,400,000.
•The Pointes at Cedar – Other: Install public playground in northern biome of the
development area. Budget impact: $125,000, with $25,000 paid with developer escrow.
•Bertram Chain of Lakes Regional Athletic Park: Planning and design for next phase.
Budget impact: $215,000 from local sales tax.
•Fallon Avenue Improvements: Oversizing and landscaping in the first phase of the
Haven Ridge West development and planning for future reconstruction from Chelsea
Road to Fallon Drive. Budget impact: $2,551,000.
Furthermore, the city evaluates utility rates annually. The following increases were adopted in
the 2025 Fee Schedule and incorporated into the 2025 budget.
•Water: Usage charges were increased by 10% in anticipation of large upcoming capital
improvements, including a new water treatment facility. Access and truck charges
increased 3%.
•Sewer: Usage charges increase 2.5% for base and usage charges. Access and trunk
charges were increased by 3%.
•Stormwater: Stormwater fees remain the same at $4.75/drainage unit. Access and trunk
charges were increased by 3%.
•Garbage & recycling: The garbage and recycling charges increase in 2025 by
approximately 5%. These rate increases match the hauler’s rates to the City per
contract, which expires on May 31, 2025. The city will either extend the contract,
negotiate a new contract, or issue a Request for Proposals (RFP).
The city’s estimated population is almost 15,000. A city of Monticello’s size, operations, tax
base composition, and location require careful planning for sustainable and responsible growth.
The valuation of the Xcel Electric Generating Plant creates large fluctuations in the tax
statements of city businesses and residents. The city has many competing priorities in terms of
capital improvements and support for development that need to be balanced with the financial
appetite of the property taxpayers. The Council’s discussions in the 2025 budget process
centered around a balance of investing in some areas now with waiting to invest in certain
areas until additional debt is paid off or external grant funding is obtained.
ϭϰTable of Contents
15Table of Contents
2025 BUDGET
OVERVIEW
City of MonƟcello, Minnesota
Property Taxes
31%
Tax Increments
1%
Franchise & Other
Taxes
1%
Sales & Use Tax
2%
Sale of Goods
16%
Licenses & Permits
1%
Intergovernmental
Revenues
10%
Charges for Services
29%Fines & Forfeits
0%
Special Assessments
1%
Miscellaneous
5%
Contributed Capital
0%
Operating
Transfers In
3%
Debt Proceeds
0%
2025 Revenues by Category - All Funds
General Fund
$8,985,000
64%
MCC Operations
$535,000
4%
Capital
$2,400,807
17%
Debt Service
$2,196,193
15%
2025 Property Tax Levy
Personnel Services
17%
Supplies
13%
Other Services &
Charges
26%
Capital Outlay
35%
Debt Service
6%
Operating Transfers
Out
3%
2025 Expenditures by Category - All Funds 2025 Water Treatment Facility
Capital School Boulevard Roundabouts
Projects & Improvements
CSAH 39 (Golf Course Road) Trail
CSAH 39 Utility Trunk Extensions
West Bridge Park Playground
Fallon Avenue/85th Street
Ditch 33 Improvements
Fund Type 2024 2025 2024 2025
General 12,757,000$ 13,181,000$ 12,757,000$ 13,181,000$
Special Revenue 2,108,000 2,146,000 2,089,000 2,103,000
Debt Service 2,280,000 2,449,000 2,606,000 2,612,000
Capital Project 37,016,000 6,520,000 43,302,000 7,298,000
Enterprise 17,515,000 19,405,000 18,984,000 24,889,000
Internal Service 1,595,000 1,974,000 1,362,000 1,954,000
Component Unit 765,000 896,000 796,000 757,000
Total 74,036,000$ 46,571,000$ 81,896,000$ 52,794,000$
Total Budget
Revenues Expenditures
ϭϲTable of Contents
17Table of Contents
BUDGET OVERVIEW
INTRODUCTION
The budget is a tool; how this versatile tool is used depends on the stakeholder. Policy makers
use the budget to provide direction on service levels and place limits on spending. For
managers, the budget offers benchmarks for measuring performance and assessing
stewardship. To community advocates, the budget conveys visibility as to whether their
concerns are being addressed. Universally, the budget is an essential tool for communicating
the city's plans, policies, procedures, and objectives regarding the services to be delivered and
the assets to be acquired in the upcoming and future fiscal years. The budget’s effectiveness is
meaningfully influenced by the conviction of the various stakeholders using this dynamic tool.
BUDGET POLICY AND STRATEGY
This budget document was prepared after analyzing and evaluating requests from various
departments and budget units. The content represents the requested financial support for the
operation of the City of Monticello for the upcoming fiscal year. Revenue estimates are
conservative and realistic, based on historical trends with greater weight placed on the most
current years. The importance of a sound revenue picture cannot be overstated.
The City of Monticello provides a range of services to the community, including police
(contracted) and fire protection; street maintenance; snow and ice removal; water, sewer and
stormwater utility services; parks, arts, and recreation amenities (including community center)
and programming; and administrative and planning services. In addition, the city owns and
operates a department of motor vehicles (DMV), municipal off-sale liquor store (Hi-Way
Liquors), and a fiber optic network (FiberNet). The level of service provided by the proposed
2025 budget is as currently enjoyed by the community. City Council and city staff used the goals
set during the strategic planning process to direct the development of the 2025 budget.
STRATEGIC OR KEY INITIATIVES
The City of Monticello provides a full range of municipal services, as listed in the previous
paragraph, and as authorized by state statute. Monticello is fortunate to have many assets,
including a beautiful setting, an excellent location, a rich heritage, and a talented population.
The city seeks to use, preserve, and enhance these assets in building a great, affordable place to
live, work, and recreate. The city will fulfill the goals below to achieve this mission:
1.Focus on value-added services, programs, and investments to balance the near-term desire
for a competitive tax rate with the responsibility to set Monticello up for a vibrant, thriving
future. The city will continually evaluate how we calculate and collect user charges and
development fees to ensure proper allocation of costs while not stifling development in the
process.
The 2025 property tax levy increase of 8.0% was higher than the tax capacity decrease of 1.0%,
creating a 9.1% increase in the city’s tax capacity rate (from 35.547 to 37.684). 2025 Budget:
The city levy increases $1,043,000 (8.5%) to $14,117,000 and the Housing and Redevelopment
(HRA) levy increases $48,000 (10.6%) to $499,000. Combined tax levy increase: $1,091,000
(8.1%). The tax levy rate is the 4th lowest of the 17 cities in Wright County.
18Table of Contents
2.Develop and maintain a quality system of parks, trails, and recreational facilities, including
the unique assets of the Monticello Community Center, the Mississippi River, and the
Bertram Chain of Lakes (BCOL) Regional Park, to support public health and wellbeing as well
as contribute to a sense of community and belonging.
In partnership with the county, the city acquired park land, which is roughly 50% designated for
non-athletic purposes and 50% designated for athletic purposes. The city also maintains roughly
365 acres of park land and 45.0 miles of trails. 2025 Budget: $775,000 West Bridge Park and
Pointes at Cedar playgrounds, $215,000 BCOL planning and design.
3.Maintain and plan for high quality water and sewer utility systems.
With some of the lowest water and sewer rates in Minnesota, the city provides excellent services
from these utilities to serve existing residents and businesses and to plan for future growth. The
budget includes funds to plan for the construction of a water treatment facility to treat iron and
manganese, improvements to the wastewater treatment plant, and ongoing system
improvements in each fund. Budget: Water - $1,000,000 water treat facility construction design,
$985,000 trunk extensions/improvements on West County Road 39 and Fallon Avenue, $75,000
purchase of a replacement truck, and $42,000 well pump house repair; Sewer - $4,810,000 trunk
extensions/improvements on West County Road 39 and Fallon Avenue, and $332,000
wastewater facility roof repairs.
4.Implement the long-range transportation plan as outlined in the Comprehensive Plan, with
the goal of improving multi-modal traffic flow around and through the city including
completion of street overlay projects before the need for reconstruction along with capacity
improvements to accommodate future local and regional growth.
Monticello is one of numerous government entities in the area taking part in regional planning
and economic development initiatives, including a study to identify an additional or expanded
interstate interchange site and Mississippi River crossing; the city is also an active, due-paying
member of the I-94 Coalition. The city’s pavement management program identifies varying
condition levels of every street. 2025 Budget: $8,000 – memberships, $1,377,989 for the General
Funds’s streets and alley activity, $3,400,000 for the School Boulevard Roundabouts &
Improvements project, $1,600,000 for the Golf Course Road trail project, and $660,000 for
roundabout installation in conjunction with development on Fallon Avenue and 85th Street
5.Invest in the city’s facilities and other infrastructure with an emphasis on proactive
maintenance to minimize reconstruction and replacement costs.
The city owns a variety of assets which support purposes such as stormwater control, fiber optic
services, shade tree preservation and expansion. These assets serve specific purposes to
enhance quality of life for Monticello’s citizens. 2025 Budget: $3,156,000 for stormwater
maintenance and operations (for example, street sweeping); $1,581,000 to operate FiberNet,
$400,000 for capital repair and expansion of the FiberNet network; and $225,936 for operations
of the Shade Tree department in the General Fund.
19Table of Contents
6.Implement the Downtown Small Area Plan which will support a downtown area that
combines a successful commercial district, community identity and heritage, and
connection with Bridge Park and the Mississippi River.
The 2017 Downtown Small Area Study plan for identified various options for re-creating the
city’s downtown. A major redevelopment began on Block 52 in 2023, and planning for
development on Block 34 has begun. The city completed the Downtown Roadway and Safety
Improvement project to supplement the investment from private developers, and future
improvements to Walnut Street, as identified in the Walnut Street Corridor Plan, are planned to
further support private downtown development. 2025 Budget: $650,000 for a new playground
in West Bridge Park and $19,000 for economic development services in the EDA Fund.
7.Seek to attract a variety of housing options to create life-cycle housing and quality
neighborhoods, allowing residents to maintain a home in the community through all stages
of life.
Staff is facilitating the development of additional residential home lots on the perimeter of the
city by working with developers and engineers. Infrastructure needs are regularly assessed and
incorporated into the city’s capital improvement plan. A housing needs and market demand
study, which measures progress towards meeting these goals, was completed in 2020 and
updated in 2023, and will be updated every 3 years. A joint City Council/EDA/Planning
Commission workshop was held in June 2024 to discuss and identify housing trends and
priorities for the community. 2025 Budget: $0; however, the State of Minnesota allocated
housing aid to the city, which will be discussed further in 2025 to plan a use for this funding.
8.Create, attract, and retain a wide range of employment opportunities with a growing
emphasis on higher-paying jobs while diversifying and expanding the city’s tax base.
This concept promotes the city’s competitive advantages (i.e., low taxes, property availability,
transportation access, etc.) to businesses looking to move or grow. 2025 Budget: $0; however,
the EDA continues to prioritize new development opportunities through TIF districts, Greater
Monticello Enterprise Fund (GMEF) low-interest loans, and incentive packages via State funding.
TOTAL BUDGET
The 2025 budget includes all the funds maintained by the city. Each fund is responsible to
account for a particular activity or activities. Each fund-type will be discussed within this
message and/or in the budget document.
The following compares the adopted 2024 and 2025 budgets:
Fund Type 2024 2025 2024 2025
General 12,757,000$ 13,181,000$ 12,757,000$ 13,181,000$
Special Revenue 2,108,000 2,146,000 2,089,000 2,103,000
Debt Service 2,280,000 2,449,000 2,606,000 2,612,000
Capital Project 37,016,000 6,520,000 43,302,000 7,298,000
Enterprise 17,515,000 19,405,000 18,984,000 24,889,000
Internal Service 1,595,000 1,974,000 1,362,000 1,954,000
Component Unit 765,000 896,000 796,000 757,000
Total 74,036,000$ 46,571,000$ 81,896,000$ 52,794,000$
Total Budget
Revenues Expenditures
20Table of Contents
Total revenues decrease 37.1% and total expenditures decrease 35.5% in 2025. General Fund
revenues and expenditures increase 3.3%, most of which is funded by the property tax levy
increase. The slight increase in special revenue activity reflects anticipated inflation for the
Community Center Fund. The increase in debt service revenues reflects a lesser use of fund
reserves to make bond payments in 2025. Capital project funds plan for lower expenditures due
to smaller projects planned in 2025, including city facility upgrades and major repairs,
improvements along School Boulevard, installation of a new pathway on Golf Course Road
(CSAH 39) West, and contributing to construction of a roundabout at Fallon Avenue and 85th
Street in connection with residential development. The Liquor Fund will transfer out $500,000
to support capital investment, and the Deputy Registrar will transfer up to $100,000 to support
operations of the Community Center Fund.
The following graphs display the revenues and expenditures attributable to each fund-type in
the 2025 Budget:
PROPERTY TAXES
The state of Minnesota has granted local municipalities the authority to levy taxes to fund
operations and debt payments. For the City of Monticello, the property tax levy accounts for
68% of revenues in the General Fund and 26% in the Community Center Fund. In 2025, debt
service funds will receive $2,196,193 in property taxes for principal and interest payments on
general obligation debt, which is $170,0184 (8.4%) higher than the prior year. With the
available levy capacity, the city levied $517,982 (27.5%) more for the Capital Project Fund in
2025. For 2025, the city's general property tax levy will increase to $14,117,000, by $1,043,000
(8.0%) over the prior year. The Economic Development Authority Fund levied a Housing and
Redevelopment Authority (HRA) special benefit levy also. The HRA levy increases to $499,000
(10.6%) from $451,000 in the prior year. When added together, the two levies represent an
8.1% increase in property taxes.
General
28%
Special
Revenue
5%
Debt Service
5%
Capital
Project
14%
Enterprise
42%
Internal
Service
4%
Component
Unit
2%
2025 Revenues by Fund Type
General
25%
Special
Revenue
4%Debt
Service
5%
Capital
Project
14%
Enterprise
47%
Internal
Service
4%
Component
Unit
1%
2025 Expenditures by Fund Type
21Table of Contents
The following table is a historical view of the tax capacity value, tax capacity rate and tax levy:
Under contract, the Wright County assessor values all properties located within the city’s
corporate limits. This market value is applied to the class rates assigned by the state to
determine a property's tax capacity. The county estimates the city's tax capacity for taxes
payable in 2025 at $37,461,713, a 1.0% decrease. The Xcel Energy nuclear power plant taxable
market value decreased 7.0% for 2025 to $708 million. The Xcel plant alone accounts for and
estimated 37% of the city’s tax capacity. The city's property tax levy is divided by the tax
capacity to determine the city's tax capacity rate, which is then applied to each property's tax
capacity to determine the city’s tax. For 2025, the city's tax capacity rate is expected to increase
9.1% to 37.684.
The city generally does not have the authority to levy or collect local sales taxes or other types
of taxes under the state's tax system. However, the state legislature authorized Monticello to
include a local sales tax question on the ballot in November 2024. Voters approved a 0.5% sales
tax for rehabilitation of the Bertram Chain of Lakes (BCOL) Regional Athletic Park effective April
1, 2025 for 20 years or until $15 million is raised, whichever occurs first.
PERSONNEL SERVICES
The 2025 budget includes one staffing change with the addition of an administrative support
position within Development Services. A 3.5% wage adjustment for all employees is included in
the 2025 budget. Public Works employees belong to a union, and their collective bargaining
agreement was renegotiated in late 2022 for the three years from January 1, 2023 through
December 31, 2025.
Union and non-union employees participate in separate health benefit plans. The monthly
union health benefit is $1,326 per participant, and the monthly non-union health benefit is
$989 for the single plan and $1,960 for family plan participants. The union’s plan requires a flat
premium for union employees regardless of participation. Staff will continue to explore ways to
reduce future premium increases for both the city and its employees.
The contribution rates to the Public Employees Retirement Association (PERA) remain the same
in 2025 for both employer and employees. PERA rates: 7.50% of wages for employer and 6.50%
for employee. The budget also calculates taxes for FICA at 6.20% and Medicare at 1.45%.
Tax Capacity Capacity Tax Capacity Rate City Tax HRA Levy
Year Value % Change Rate % Change Levy Levy % Change
2016 $25,891,898 8.4% 34.470 -3.5% $8,925,000 $280,000 4.6%
2017 $27,583,160 6.5% 33.172 -3.8% $9,150,000 $280,000 2.5%
2018 $29,528,145 7.1% 32.332 -2.5% $9,547,000 $323,000 4.3%
2019 $29,076,227 -1.5% 34.262 6.0% $9,962,000 $348,000 4.3%
2020 $29,870,392 2.7% 34.968 2.1% $10,445,000 $355,000 4.8%
2021 $31,026,583 3.9% 35.659 2.0% $11,063,700 $366,300 5.9%
2022 $31,073,603 0.2% 36.536 2.5% $11,353,000 $388,000 2.6%
2023 $34,393,769 10.7% 35.035 -4.1% $12,050,000 $402,000 6.1%
2024 $37,843,681 10.0% 34.547 -1.4% $13,074,000 $451,000 8.5%
2025 $37,461,713 -1.0% 37.684 9.1% $14,117,000 $499,000 8.0%
22Table of Contents
GENERAL FUND
Expenditures
The following schedule displays 2025 budgeted General Fund expenditures by department
compared with the prior year budget:
The 2025 General Fund budget increased 3.3% over the 2024 budget. Personnel services
includes wages and benefits for all full-time, part-time, and seasonal employees. This cost
category rises with wage and benefit inflation and changes to staff levels.
The chart below presents the 2025 budgeted expenditures allocated by function/department:
The largest department based on expenditures is the Public Safety Department. The 2025
Public Safety department budget increased 2.4%. Public safety activities include law
enforcement, fire & rescue, building inspections, emergency management, animal control, and
National Guard. The city contracts with the Wright County Sheriff's department for law
enforcement. The 2025 contract includes a $5.00 increase in the hourly service rate for 60
hours per day which was offset by a one-time “assessment” charged to the City in 2024 for an
adjustment in WCSO’s pay scale. The fire and rescue budget increased 9.8% due to higher
Central Equipment Fund rental charges and increased funding to the Facilities Maintenance
internal service fund in 2025. Fire relief expenditures increased by 13.8% and emergency
management expenditures decreased by 45.5%; both are offset with external support (state aid
and grant funding) meaning there is no impact to the taxpayers for these adjustments that
Department 2024 2025 % Change
General Government 2,721,856$ 3,054,797$ 12.2%
Public Safety 3,882,331 3,973,644 2.4%
Public Works 3,027,573 2,995,852 -1.0%
Sanitation 880,557 900,000 2.2%
Recreation & Culture 2,238,683 2,250,707 0.5%
Operating Transfers Out 6,000 6,000 0.0%
Total 12,757,000$ 13,181,000$ 3.3%
General Fund Expenditures and Other Uses
General
Government
23%
Public Safety
30%
Public Works
23%
Sanitation
7%
Recreation &
Culture
17%
2025 Appropriations By Department
23Table of Contents
better reflect actual trends. Other public safety functions remain fairly consistent with the 2024
budget.
The 2025 budget for general government activities increases 12.2%. The city clerk activity
decreased 20.3% due to elections only occurring in even-numbered calendar years. The
planning & zoning, human resources, and finance activities increase respectively by 70.0% due
to a park dedication study, 29.9% due to a classification and compensation study, and 10.5%
due to implementation of an accounts payable (AP) workflow. The city hall activity increased
42.7% due to potential updates to the layout of city hall workspaces.
In 2025, Public Works is the third largest department in terms of budgeted expenditures with
an overall decrease of 1.0%. The streets & alleys (-1.2%), ice & snow (-2.8%), and street lighting
(-9.6%) activities decreased to better reflect actual spending trends. PW administration (+5.5%),
engineering & inspections (+3.7%), and shop & garage (+2.7%) increase by inflationary
assumptions.
Recreation and culture expenditures increase by 0.5% in 2025. Public arts and shade tree
decrease due to lower amounts of grant funding in 2025 for operations and Emerald Ash Borer
(EAB) response, respectively. The library’s carpet replacement project was completed in 2024;
some of this funding remains in 2025 but will be used for a fire system upgrade in the building.
Ballfields increased 19.0%, but reflects a $5,500 increase due to reflect anticipated inflation.
Sanitation expenditures include the costs of the contract with Waste Management for
residential garbage and recycling collection. The city’s contract with its residential garbage
hauler ends on May 31, 2025, and the city will issue a request for proposal for services after
that date.
Including services for police, assessor, and legal services, other services, and charges account
for 51% of General Fund appropriations, a decrease from 52% in 2024. Appropriations for
personnel services follow at 35% of the total. Capital outlays include the internal rent payments
to the Central Equipment Fund. Additional equipment purchases will translate into higher lease
payments, and completion of lease payments for select pieces of equipment will cause a
decrease. Supplies account for 8% of the general fund budget, which is a slight increase from
7% in 2024.
The following table and graph provide perspective on expenditures and other uses for the
various General Fund expenditure classifications in the 2024 and 2025 budgets:
Department 2024 2025 % Change
Personnel Services 4,299,928$ 4,542,664$ 5.6%
Supplies 994,649 931,650 -6.3%
Other Services & Charges 6,888,923 7,055,786 2.4%
Capital Outlay 567,500 644,900 13.6%
Operating Transfers Out 6,000 6,000 0.0%
Total 12,757,000$ 13,181,000$ 3.3%
General Fund Appropriations
24Table of Contents
Revenues and other sources
Revenues and other sources supporting General Fund expenditures and other uses are
classified as follows:
The General Fund’s tax levy increases by 4.0%, while the General Fund’s portion of the
combined levy (city + HRA) decreases from 63.9% to 61.5%. Franchise & other taxes decrease to
offset the decreased budget for street lighting. Decreases in intergovernmental revenues are
attributable to 2024 aid from the State of Minnesota for public safety and to respond to
Emerald Ash Borer (EAB) found in city trees. The increase in charges for services reflects higher
residential garbage and recycling charges along with engineering revenue for inspections
performed on development and city projects. Fines & forfeits increase to better reflect
historical trends; this mostly consists of court fines received via the State that are passed on to
Wright County since the city contracts with the Wright County Sheriffs Office (WCSO) for law
enforcement. Miscellaneous revenues are projected higher due to higher interest rates being
earned on investments.
The property tax levy generates 68.2% of the General Fund revenues. Other than franchise fees,
the city does not impose other taxes, such as local option sales taxes or income taxes for
General Fund operations. Therefore, the city will remain dependent on property tax revenue as
its major source of future revenues.
Personnel
Services
35%
Supplies
8%
Other Services
& Charges
51%
Capital Outlay
6%
2025 Appropriations -General Fund
Classification 2024 2025 % Change
Property Taxes 8,640,000$ $8,985,000 4.0%
Franchise & Other Taxes 346,500 324,000 -6.5%
Licenses & Permits 487,000 482,000 -1.0%
Intergovernmental Revenues 1,057,000 825,000 -21.9%
Charges for Services 1,309,743 1,514,900 15.7%
Fines & Forfeits 51,600 78,500 52.1%
Special Assessments 100 - -100.0%
Miscellaneous 865,057 971,600 12.3%
Total 12,757,000$ 13,181,000$ 3.3%
General Fund Revenues and Other Sources
25Table of Contents
SPECIAL REVENUE FUNDS
The City of Monticello currently operates special revenue funds for cemetery and community
center activities along with the Small Cities Development Program (SCDP) Fund, which will likely
see little activity in 2025 outside of one loan to a local business.
Like the General Fund, the special revenue fund budgets are set at a level to maintain services.
The tax levy supports community center operations ($535,000). Charges for services are the
largest revenue source for both the community center (memberships) and the cemetery (plot
sales). Community center charges were budgeted with added conservatism due to the
uncertain nature of discretionary spending in the current economic environment.
The following tables display the change in budgeted revenues and other sources and the
change in budgeted expenditures and other uses for special revenue funds:
68%2%
4%
6%
12%
1%7%
2025 Revenues -General Fund
Property Taxes
Franchise & Other Taxes
Licenses & Permits
Intergovernmental
Revenues
Charges for Services
Fines & Forfeits
Classification 2024 2025 % Change
Property Taxes 525,000$ 535,000$ 1.9%
Tax Increments - - -
Intergovernmental Revenues - - -
Charges for Services 1,441,100 1,450,800 0.7%
Miscellaneous 41,900 60,200 43.7%
Operating Transfers In 100,000 100,000 0.0%
Total 2,108,000$ 2,146,000$ 1.8%
Special Revenue Funds Revenues and Other Sources
Department 2024 2025 % Change
Personnel Services 1,313,235$ 1,195,454$ -9.0%
Supplies 107,000 130,700 22.1%
Other Services & Charges 668,765 756,846 13.2%
Capital Outlay - 20,000 -
Operating Transfers Out - - -
Total 2,089,000$ 2,103,000$ 0.7%
Special Revenue Funds Appropriations
26Table of Contents
DEBT SERVICE FUND (Aggregate of Sub-Funds)
The city's debt service for 2025 is $2,609,000, or $6,000 (0.2%) more than the prior year due to
routine amortization of outstanding bond issues. Funding for debt service comes from special
assessments and property taxes. Outstanding debt as of January 1, 2025: debt service funds -
$14,430,000; Sewer enterprise fund - $2,180,000. The city's bond rating from Moody’s
Investors Services is Aa3.
CAPITAL PROJECT FUNDS
The budgets for capital project funds are based on the 2025 project expenditures listed in the
first year of the city's five-year capital improvement plan. The city's five-year capital
improvement plan is included in a later section of this report. No new debt to fund capital
projects is anticipated in 2025.
ENTERPRISE FUNDS
Total revenues and other sources for the enterprise funds (Water, Sewer, Stormwater, Liquor,
DMV, and Fiber Optics) is estimated at $19,405,000 for 2025. The change in sale of goods
represents a conservative budgeting policy. Charges for services increases with higher rates
charged on utility fund customers. Special assessments increase to better reflect recent activity.
Personnel services increase with wage and benefit inflation of 3.5% and a step increase for
staff, where applicable. Operating transfers out are from the Liquor Store and DMV to fund
capital projects and from the Deputy Registrar Fund to support operations in the Community
Center special revenue fund.
INTERNAL SERVICE FUNDS
The City of Monticello operates four internal service funds: Facilities Maintenance, Information
Technologies (IT) Services, Central Equipment Fund, and Benefits Accrual. These funds operate
Classification 2024 2025 % Change
Sale of Goods 7,504,849$ 7,366,428$ -1.8%
Licenses & Permits 2,000 2,000 0.0%
Intergovernmental Revenues 1,330,000 2,485,000 86.8%
Charges for Services 8,458,899 8,853,209 4.7%
Special Assessments 10,000 30,000 200.0%
Miscellaneous 134,252 668,363 397.8%
Contributed Capital 75,000 - -100.0%
Total 17,515,000$ 19,405,000$ 10.8%
Enterprise Funds Revenues and Other Sources
Department 2024 2025 % Change
Personnel Services 2,556,843$ 2,726,632$ 6.6%
Supplies 6,133,540 6,008,500 -2.0%
Other Services & Charges 4,651,094 4,706,268 1.2%
Capital Outlay 4,175,000 10,079,000 141.4%
Debt Service 367,523 366,600 -0.3%
Operating Transfers Out 1,100,000 1,002,000 -8.9%
Total 18,984,000$ 24,889,000$ 31.1%
Enterprise Funds Appropriations
27Table of Contents
on a cost-recovery basis, but the time horizon differs greatly. Internal service fund charges are
recorded as expenditures in other funds.
The Facilities Maintenance and IT Services funds are not capital intensive with annual small
tools and equipment purchases in the $20,000 to $30,000 range. IT equipment usually has a
shorter replacement cycle. The Facilities Maintenance Fund focuses on proactive monitoring
and repairs & maintenance of existing city buildings. Major capital improvements or
replacements are funded through the appropriate capital projects fund or enterprise fund.
The Central Equipment Fund is funded through annual rental charges to benefitting budget
units to recover equipment purchase costs over periods of 7–10 years. Annual depreciation and
inflation for each capital asset are used in calculating annual rental payments.
The Benefits Accrual Fund accumulates resources from governmental funds to match the city’s
paid leave (paid-time-off) liability for governmental fund employees.
DISCRETELY PRESENTED COMPONENT UNIT FUND
The city currently has one discretely presented component unit fund. Component units are
legally separate entities for which the city (primary government) is financially accountable, or
for which the exclusion of the component unit would render the financial statements of the
primary government misleading. The Monticello Economic Development Authority (EDA) is a
legally separate entity created pursuant to Minnesota Statutes § 469.090 through § 469.108 to
carryout economic and industrial development and redevelopment within the city in
accordance with policies established by the City Council. Under Section 469.033, subd. 6, of the
HRA Act, the HRA’s special benefit tax is levied annually and is limited to 0.0185% of the taxable
market value, which is $499,000 in 2025. Tax increments support economic development
activities, but their use is generally restricted to a specific activity in a specific area.
FUND BALANCES
Fund balances decline when expenditures exceed revenues. The General Fund and Monticello
Community Center (MCC) Fund generally have balanced budgets where revenues equal
expenditures. The Economic Development Authority (EDA)’s fund balance is projected to
increase due to housing TIF districts collecting pooled increments without any offsetting
obligations. The fund balance in the Debt Service Fund declines through normal debt
amortization. Additionally, the fund balance for the capital projects funds declines with
anticipated use of existing resources for various projects. Enterprise fund balances are
budgeted to decline by roughly $5.5 million, which is the result of the use of previously
collected utility trunk funds for the West County Road 39 extensions and transfers to the
Capital Project and Community Center funds.
CHALLENGES IN CONTEXT
The preparation of this budget reflects the need to meet both short-term and long-term
challenges. While the local economy is stable, inflation, federal reserve rates, and federal
economic policy add uncertainty to Monticello’s future fiscal planning. The commercial and
apartments tax base grew significantly for taxes payable in 2025, and while the Monticello
Nuclear Generating Plant still represents a significant portion of the tax base, it decreased in
28Table of Contents
value along with a decrease in residential tax base (attributable to an increase in Minnesota’s
market value homestead exclusion calculation). Ultimately, the City Council desires to meet
current and future growth needs by maintaining a modest tax capacity rate.
Second, in 2021, the city paid off the judgment bonds related to the 2014 settlement of the
telecommunication bondholder’s class-action lawsuit, which further allows the city to put the
bond default behind it. The city renewed its contract with Arvig Enterprises through June of
2026. Since 2019, Fibernet has had positive cash flow from operations and is situated to cover
all the capital investment into new neighborhoods in the coming years. Discussions on the
future of the telecommunications industry will occur as the city continues to move forward.
Third, the city is moving ahead with several capital projects. Most large projects have
reimbursement resolutions, meaning the city can recover their temporary draw on reserves
with debt proceeds. Major Council initiatives in the next few years include continued
improvements in the downtown, a new water treatment facility, a new public works facility,
additional phases for improvements at the Bertram Chain of Lakes (BCOL) Regional Park, the
Pointes at Cedar development area, and utility and transportation improvements on Fallon
Avenue. A Local Option Sales Tax that will be implemented in 2025 will contribute funding to
BCOL. However, while the city strives to maximize external funding, prioritization of finite
financial resources will continue to be needed to accomplish the City Councils goals while also
responding to an interest in development.
Fourth, stable leadership requires long term planning, but council seats are not as long as
planning efforts require. In 2024, the mayor was re-elected for a third two-year term, one
existing councilmember was re-elected for an additional four-year term, and one new
councilmember began their four-year term. The mayor and two councilmembers have terms
expiring again at the end of 2026.
In summary, the uncertain economic environment, public safety service enhancement,
transportation improvements, stabilization in Fibernet operations, and economic and park
development impacted decisions made in drafting the 2025 budget.
DISTINGUISHED BUDGET PRESENTATION AWARD
The Government Finance Officers Association of the United States and Canada (GFOA)
presented a Distinguished Budget Presentation Award to the City of Monticello, Minnesota for
its annual budget for the fiscal year beginning January 1, 2024. To receive this award, a
governmental unit must publish a budget document that meets program criteria as a policy
document, as an operations guide, as a financial plan, and as a communications device.
This award is valid for a period of one year only. The City of Monticello has received this award
every year since 2009 and is one of 33 entities (26 of which are cities) in Minnesota to receive
the award in 2024. We believe our current budget continues to conform to program
requirements, and we are submitting it to GFOA to determine its eligibility for another award.
CONCLUSION
Conservation of city financial resources continues to be a top objective. The budget is the
primary tool in making sure limited resources are wisely utilized. City Council and staff believe
29Table of Contents
the 2025 budget allows the city to deliver excellent municipal services in a cost-effective and
efficient manner. The 2025 budget is a product of collective efforts by the City Council, staff,
and various other stakeholders. Their commitment, good judgment, and expertise are
invaluable to the budget process.
Sincerely,
Rachel Leonard Sarah Rathlisberger
City Administrator Finance Director
30Table of Contents
ORGANIZATION CHART
The City of Monticello operates a city administrator form of government, whereby the city
administrator acts as the liaison between city staff and the city council. The city administrator
leads council workshops and discussions to form strategic plans and goals. The strategic plans
and goals are then used as the starting point for city leaders to submit budget requests for the
upcoming year.
During internal budget discussions, staff look to the city administrator to ensure the budget is
aligning with council’s desired outcomes. City leaders are then responsible for how their
departments’ budgets translate from the council’s strategic plans and goals to daily workload.
31Table of Contents
FUND DESCRIPTIONS & STRUCTURE
BUDGETED FUNDS
The city has legally adopted budgets for the General Fund and all special revenue funds.
Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring
of budgets is maintained at the department level. Any amounts over budget would need to be
approved by the city council through the disbursement process. Although the city is not legally
required to adopt an annual budget for the nonmajor special revenue funds, the debt service
funds, capital projects funds, enterprise funds, and internal service funds, it does so as a means
of implementing an entity-wide view of the city’s finances, all of which are included in the city’s
Annual Comprehensive Financial Report (ACFR) and Long-Term Financial Plan, both of which are
updated annually.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America. Budgeted amounts are as originally adopted or as amended by the city
council. All annual appropriations lapse at year-end.
MAJOR FUNDS
A fund is considered major for budgetary purposes if its revenues or expenditures, excluding
other financing sources and uses, constitute more than 10% of the revenues or expenditures of
the city-wide appropriated budget. Major funds are bolded with red font in the hierarchy on the
following pages and do not necessarily match the major funds presented in the city’s ACFR
because the calculation for purposes of the ACFR differ slightly and are based on actual rather
than budgeted revenues and expenditures.
General Fund - The General Fund is used to account for all financial resources except those
required to be accounted for in another fund.
Capital Project - The Capital Project (capital projects) Fund is used to account for all capital
acquisition and construction activities of the city not accounted for in another capital project,
enterprise, or internal service fund.
Sewer - The Sewer (enterprise) Fund is used to account for all activities necessary to provide
sewer services to the residents and businesses of the city, including operations of the city’s trunk
line system and wastewater treatment plant.
Liquor - The Liquor (enterprise) Fund is used to account for the operations of the city’s off-sale
liquor store, Hi-Way Liquors.
Details on the purposes of the nonmajor funds are included with each fund later in this report.
32Table of Contents
Go
v
e
r
n
m
e
n
t
a
l
General
Special Revenue
Cemetery Fund
Small Cities Development Program
(SCDP) Fund
Community Center Fund
Debt Service
2015B GO Bond Sub-Fund
2016A GO Bond Sub-Fund
2017A GO Bond Sub-Fund
2018A GO Bond Sub-Fund
2019A GO Bond Sub-Fund
2020A GO Bond Sub-Fund
Capital Projects
Capital Project Fund
Street Lighting Improvement Fund
Park & Pathway Improvement Fund
Park Dedication Fund
BCOL Sales Tax Fund
33Table of Contents
Pr
o
p
r
i
e
t
a
r
y
Enterprise
Water Fund
Sewer Fund
Stormwater Fund
Liquor Fund
Deputy Registrar Fund
Fiber Optics Fund
Internal Service
Facilities Maintenance Fund
IT Services Fund
Central Equipment Fund
Benefit Accrual Fund
Co
m
p
o
n
e
n
t
Un
i
t
Discretely-Presented Economic Development
Authority Fund
34Table of Contents
DEPARTMENTS & FUNDS RELATIONSHIP
The departments within each fund’s budget are noted in the matrix below:
All capital project funds were combined for this presentation, except the Parks & Pathway
Improvement Fund and BCOL Sales Tax Fund, which fund similar projects but with different
sources. Principal and interest payments on debt occur in the Debt Service Fund (comprised of
subfunds) and the Sewer Fund.
Park &
Pathway
General Cemetery
Community
Center
Capital
Projects
and BCOL
Sales Tax
Water, Sewer
& Stormwater
Liquor
Store
Deputy
Registrar
Fiber
Optics
Facilities
Maintenanc
IT
Services
Central
Equipmen
Benefit
Accrual EDA
GENERAL GOVERNMENT
Mayor & Council ●
City Administration ●●●●
City Clerk ●●●
Finance, Audit & Assessing ●●●●●●●●
Legal ●
Human Resources ●●●
Planning & Zoning ●●●●
City Hall ●●
Economic Development ●●●
PUBLIC SAFETY
Law Enforcement ●
Fire & Rescue ●●●●●
Fire Relief ●
Building Inspections ●●●
Emergency Management ●●●
Animal Control ●● ●
National Guard ●
PUBLIC WORKS
PW Administration ●●●●
Engineering & Inspections ●●●●●
Streets & Alleys ●●●●●●
Ice & Snow ●●
Shop & Garage ●●● ●●
Street Lighting ●●●
Refuse Collection ●
Water Utility ●● ●
Sewer Utility ●● ●
Stormwater Utility ●●
RECREATION AND CULTURE
Senior Center ●●
Park Operations ●●●●●
Park Improvements ●● ●
Park Ballfields ●
Public Arts ●●
Shade Tree ●
Library ●●
Cemetery ●●
Community Center ●● ●
Fiber Optics ●● ●
FUND
35Table of Contents
BASIS OF BUDGETING
The City of Monticello budget serves several purposes:
•For the residents, it presents a picture of the city government operations and
intentions for the year.
•For the city council, it serves as a policy tool and as an expression of goals and
objectives.
•For city management, it is used as an operating guide and a control mechanism.
The city's budget encompasses both the operating budget and the capital improvement
budget. Each budget unit includes amounts appropriated for both operating expenditures and
capital acquisitions and improvements. Accompanying narrative for each budget unit briefly
explains the items included.
BASIS OF BUDGETING
The city’s accounts are categorized by funds, each of which is accounted for like an individual
entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, deferred inflow/outflows, liabilities, fund equity, revenues,
and expenditures.
Governmental funds (the General Fund, special revenue, debt service, and capital project
funds) use the modified accrual basis for budgeting and accounting. Revenues are
recognized in the accounting period in which they become measurable and available.
Expenditures are recognized when liabilities are incurred.
Proprietary funds (enterprise and internal service funds) use the modified accrual basis for
budgeting and the full accrual basis for accounting for financial reporting. In the full accrual
basis of accounting, revenues are recognized in the accounting period in which they are
earned, and expenses are recognized in the accounting period in which they are incurred,
regardless of when the actual cash flow occurs. For example, the full accrual basis accounting
differs from the modified accrual basis by recording expenses for depreciation and
compensated absences but not debt principal payments, whereas the modified accrual basis
of accounting would classify the original capital cost as an expenditure (and would therefore
have nothing to depreciate), the compensated absence payment as an expenditure at the
time of payment rather than when earned, and debt proceeds as revenue when received and
expenditures when repaid. Each proprietary fund’s financial statements, located in the city’s
Annual Comprehensive Financial Report (ACFR), are reported on the full accrual basis.
WORKLOAD/PERFORMANCE BUDGETING
The City of Monticello strives to develop a budget focused on workload/performance outputs
rather than incrementally budget based on the prior year. This type of budgeting shifts the
emphasis away from describing what will be purchased (inputs) towards describing what will
be accomplished (outputs and outcomes). While this budgeting process faces numerous
structural and cultural hurdles, this work-in-progress continues today with both an
organization-wide and budget-unit specific focus on outcomes.
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FINANCIAL POLICIES
The overall goal of the city's financial policies is to establish and maintain effective
management of the city's financial resources. Formal policy statements and major objectives
provide the foundation for achieving this goal. Accordingly, this section outlines the policies and
practices used in guiding the preparation and management of the city's overall budget and the
major objectives to be accomplished. In addition, the rationale which led to the establishment
of the fiscal policy statements is also identified.
Budget Development & Administration Practices
1.A comprehensive annual budget will be prepared for all funds expended by the city.
The City Council shall have full authority over the financial affairs of the city and shall
provide for the collection of all revenue and other assets, the auditing and settlement of
accounts, the safekeeping and disbursement of public monies, and, in the exercise of a sound
discretion, shall make appropriations for the payment of all liabilities and expenses. Inclusion of
all funds in the budget enables the council, administration, and the public to consider all
financial aspects of city government when preparing, modifying, and monitoring the budget,
rather than deal with the city's finances on a "piece meal" basis.
2.The budget will be prepared in such a manner as to facilitate its understanding by
residents and elected officials.
One of the stated purposes of the budget is to present a picture of city government
operations and intentions for the year to the residents of Monticello. Presenting a budget
document that is understandable to the residents furthers the goal of effectively
communicating local government finance issues to both elected officials and the public.
3.Budgetary emphasis will focus on providing those basic municipal services that provide
the maximum level of services, to the most residents, in the most cost-effective manner, with
consideration being given to all costs - economic, fiscal, and social.
Adherence to this basic philosophy provides the residents of Monticello assurance that
their government and elected officials are responsive to the basic needs of the residents and
that their city government is operated in an economical and efficient manner.
4.The budget will provide for adequate maintenance of capital, plant, and equipment and
for their orderly replacement.
All governmental entities experience prosperous times as well as periods of economic
decline. In periods of economic decline, proper maintenance and replacement of capital, plant,
and equipment is generally postponed or eliminated as a first means of balancing the budget.
Recognition of the need for adequate maintenance and replacement of capital, plant, and
equipment, regardless of the economic conditions, will assist in maintaining the government's
equipment and infrastructure in good operating condition.
5.The city will avoid budgetary practices that balance current expenditures at the expense
of meeting future year expenditures.
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Budgetary practices such as postponing capital expenditures, accruing future years'
revenues, or rolling over short-term debt are budgetary practices which can solve short-term
financial problems. However, they can create much larger financial problems for future
administrations and councils. Avoidance of these budgetary practices will assure residents that
current problems are not simply being delayed to a future year.
6.The city will give highest priority in the use of one-time revenues to the funding of capital
assets or other non-recurring expenditures.
Utilizing one-time revenues to fund on-going expenditures results in incurring annual
expenditure obligations, which may be unfunded in future years. Using one-time revenues to
fund capital assets or other non-recurring expenditures better enables future administrations
and councils to cope with the financial problems when these revenue sources are discontinued,
since these types of expenditures can more easily be eliminated.
7.The city will maintain a budgetary control system to help it adhere to the established
budget.
The budget passed by the council establishes the legal spending limits for the city. A
budgetary control system is essential to ensure legal compliance with the city's budget.
8. The city will exercise budgetary control (maximum spending authority) through City
Council approval of appropriation authority for each appropriated budget unit.
Exercising budgetary control for each appropriated budget unit satisfies requirements of
state law. It also assists the council in monitoring current year operations and acts as an early
warning mechanism when departments deviate in any substantive way from the original
budget.
9.Reports comparing actual revenues and expenditures to budgeted amounts will be
prepared monthly as practical and formally reported to City Council quarterly.
The city's budget is ineffective without a system to regularly monitor actual spending
and revenue collections with those anticipated at the beginning of the year. Monthly and
quarterly reports comparing actual revenues and expenditures to budget amounts provide the
mechanism for the council and administration to regularly monitor compliance with the
adopted budget.
10.State Requirement: Truth-in-Taxation
The Truth in Taxation (TNT) law requires the city to hold a series of public hearings to
present the proposed levy and budget, and to provide an opportunity for the public to
comment and make recommendations. The city’s proposed general levy and the EDA
(economic development authority)’s proposed HRA (housing and redevelopment authority) levy
must be certified to the county auditor by September 30th. The final levies for both must be
certified by December 29th.
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Revenue Collection Practices
1.The city will seek to maintain a diversified and stable revenue base.
A city dependent upon a few volatile revenue sources is frequently forced to suddenly
adjust tax rates or alter expenditure levels to coincide with revenue collections. Establishment
of a diversified and stable revenue base, however, serves to protect the city from short-term
fluctuations in any one major revenue source.
2.The city will estimate revenues in a realistic and conservative manner.
Aggressive revenue estimates significantly increase the chances of budgetary shortfalls
occurring during the year--resulting in either deficit spending or required spending reductions.
Realistic and conservative revenue estimates, on the other hand, will serve to minimize the
adverse impact of revenue shortfalls and will also reduce the need for mid-year spending
reductions.
3.The city will pursue an aggressive policy of collecting revenues.
An aggressive policy of collecting revenues will help to ensure the city's revenue
estimates are met, all taxpayers are treated fairly and consistently, and delinquencies are kept
to a minimum.
4.The city will aggressively pursue opportunities for federal or state grant funding.
An aggressive policy of pursuing opportunities for federal or state grant funding
provides residents assurance that the city is striving to obtain all state and federal funds to
which it is eligible--thereby reducing dependence upon local taxpayers for the support of local
public services.
5.User fees and charges will be used, as opposed to general taxes, when distinct beneficiary
populations or interest groups can be identified.
User fees and charges are preferable to general taxes because user charges can provide
clear demand signals which assist in determining what services to offer, their quantity, and
their quality. User charges are also more equitable, since only those who use the service must
pay--thereby eliminating the subsidy provided by nonusers to users, which is inherent in
general tax financing.
6.User fees will be collected only if it is cost-effective and administratively feasible to do so.
User fees are often costly to administer. Prior to establishing user fees, the costs to
establish and administer the fees will be considered to provide assurance that the city's
collection mechanisms are being operated in an efficient manner.
Expenditures & Payments Practices
1. Ongoing expenditures will be limited to levels which can be supported by ongoing
revenues.
Utilization of reserves to fund on-going expenditures will produce a balanced budget,
however, this practice will eventually cause severe financial problems. Once reserve levels are
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depleted, the city would face elimination of on-going costs to balance the budget. Therefore,
the funding of on-going expenditures will be limited to current revenues.
2.Minor capital projects or recurring capital projects, which primarily benefit current
residents, will be financed from current revenues.
Minor capital projects or recurring capital projects represent relatively small costs of an
on-going nature, and therefore, should be financed with current revenues rather than utilizing
debt financing. Those who benefit from a capital project should pay for the project.
4.Major capital projects, which benefit future residents, will be financed with other
financing sources (e.g., debt financing) as appropriate.
Major capital projects represent large expenditures of a non-recurring nature which
primarily benefit future residents. Debt financing provides a means of generating sufficient
funds to pay for the costs of major projects. Debt financing also enables the costs of the project
to be supported by those who benefit from the project, since debt service payments will be
funded through charges to future residents.
5.Construction projects and capital expenditures of $10,000 or more will be included in the
Capital Improvement Plan (CIP) and related capital outlay line item; minor capital outlays
(less than $10,000) will be included in the operating budget as small tools & equipment or
repairs & maintenance.
The Capital Improvement Plan (CIP) differentiates the financing of high-cost, long-lived
physical improvements from low cost "consumable" equipment items contained in the
operating budget. CIP items may be funded through debt financing, a planned buildup of
reserves, or current revenues while operating budget items are annual or routine in nature and
should only be financed from current revenues.
6.Spending Policy: The city will spend its resources in the following order. Resources will be
categorized according to Generally Accepted Accounting Principles (GAAP) for state and local
governments, with the following general definitions:
•Restricted: Amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government) through constitutional
provisions or by enabling legislation.
•Committed: Amounts constrained to specific purposes by the City Council by Resolution;
to be reported as committed, amounts cannot be used for any other purpose unless the
City Council takes action to remove or change the constraint also by Resolution.
•Assigned: Amounts the city intends to use for a specific purpose; intent can be
expressed by the council or by a designee to which the council delegates the authority.
The City Council delegated this authority to itself, City Administrator, or Finance
Director.
•Unassigned: Amounts that are available for any purpose; these amounts are reported
only in the General Fund.
When multiple sources of funding are available, spending will occur in the following order:
Restricted, Committed, Assigned, Unassigned.
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Capital Assets Policy – Adopted July 28, 2008
1. The city will be categorized by classes of capital assets.
The classes of capital assets will be land, parking lots, buildings, infrastructure,
improvements (other than buildings), machinery and equipment, office equipment and
furniture, and motor vehicles. Construction in Progress will be recognized as an asset but is not
eligible to be depreciated until the project is completed and/or asset is transferred to the city.
2. The city will capitalize items by classification as summarized in the Capitalization
Thresholds & Useful Lives in the Appendix of this document.
3. Donations of capital assets will be recorded at estimated fair market value at the date of
acquisition.
4. Straight-line depreciation will be the method used per the useful lives summarized in the
Capitalization Thresholds & Useful Lives in the Appendix of this document.
Land, easements and construction in progress are not considered depreciable assets.
5. The finance department will distribute an inventory list, by department, to each
department head annually.
It will be the department head’s responsibility to verify the inventory form, accounting
for any changes in their department’s inventory, and return it to the finance department. The
finance department will then make any necessary adjustments, transfers, or disposals to the
capital assets system, to account for these changes.
6. A physical inventory of the City’s capital assets will be conducted periodically by the
finance department staff in conjunction with the various departments.
Random inventories may be conducted by staff at any time also. The appropriate
adjustments will be made to the capital asset system. Any significant variances will be
investigated, and policies and procedures will be adjusted accordingly, if necessary.
Debt Administration Practices
1. The city will limit long-term debt to capital improvements which cannot be financed from
current revenues.
Incurring long-term debt serves to obligate future taxpayers. Excess reliance on long-
term debt can cause debt levels to reach or exceed the government's ability to pay. Therefore,
conscientious use of long-term debt will provide assurance that future residents will be able to
service the debt obligations left by former residents.
2. The city will repay borrowed funds within a period not to exceed the expected useful life
of the asset.
This policy reflects the view that those residents who benefit from a project should pay
for the project. Adherence to this policy will also help prevent the government from over-
extending itself regarding the incurrence of future debt.
3. The city will not use long-term debt for financing current operations.
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This policy reflects the view that those residents who benefit from a service should pay
for the service. Utilization of long-term debt to support current operations would result in
future residents supporting services provided to current residents.
4.The city will adhere to a policy of full public disclosure regarding the issuance of debt.
Full public disclosure regarding the issuance of debt provides assurance that the
incurrence of debt, for which the public is responsible, is based upon a genuine need and is
consistent with underwriter guidelines.
Reserves and Fund Balances Policy – Adopted September 12, 2011
1.Reserves and Fund Balances will be properly designated into the following categories:
•Nonspendable fund balance: Amounts that are not in a spendable form (such as
inventory) or are required to be maintained intact (such as the principal of an
endowment fund).
•Restricted fund balance: Amounts constrained to specific purposes by their providers
(such as grantors, bondholders, and higher levels of government) through constitutional
provisions or by enabling legislation.
•Committed fund balance: Amounts constrained to specific purposes by the City Council
by Resolution; to be reported as committed, amounts cannot be used for any other
purpose unless the City Council takes action to remove or change the constraint also by
Resolution.
•Assigned fund balance: Amounts the city intends to use for a specific purpose. The City
Council, City Administrator, or Finance Director can express intent.
•Unassigned fund balance: Amounts that are available for any purpose; these amounts
are reported only in the General Fund or a deficit in other fund types.
2.A minimum level of general fund reserve of 60-75% of annual 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 (natural disasters, catastrophic events, etc.) 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.
Accrued employee payroll benefits, such as sick leave, vacation, or paid time off,
represent a significant obligation of the city. The city will maintain sufficient reserves to meet
its annual expenditure obligations in the Benefit Accrual internal service fund.
The city recognizes the need to maintain adequate equipment to carry out required
public services. Equipment acquisition and replacement represent on-going costs of a minor
nature, as compared to major capital purchases. The city plans for equipment replacement
within the Capital Improvement Plan. However, unforeseen equipment problems will arise. The
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reserve will provide resources for the immediate, unanticipated replacement of critical
equipment.
The city is subject to revenue shortfalls and unexpected expenditure demands during the
fiscal year. An unassigned general fund reserve will be maintained to be able to offset these
revenue shortfalls or meet unexpected demands occurring during the year, without suddenly
adjusting tax rates or reducing expenditures.
Financial Reporting & Accounting Practices
1.The city will manage and account for its financial activity in accordance with Generally
Accepted Accounting Principles (GAAP) as set forth by the Governmental Accounting
Standards Board (GASB).
GASB is recognized as the authority with respect to governmental accounting. Managing
the city's finances in accordance with GAAP and in accordance with the rules set forth by GASB
provides the Monticello residents assurance that their public funds are being accounted for in a
proper manner.
2.The city will maintain its accounting records for general governmental operations on a
modified accrual basis, with revenues recorded when available and measurable, and
expenditures recorded when services or goods are received, and liabilities incurred.
Accounting records for proprietary fund types and similar trust funds will be maintained on
an accrual basis, with all revenues recorded when earned and expenses recorded when
liabilities are incurred, without regard to timing of cash receipt or payment.
Adherence to this policy will allow the city to prepare its financial statements in
accordance with Generally Accepted Accounting Principles as set by the Governmental
Accounting Standards Board.
3.The city of Monticello will prepare an Annual Comprehensive Financial Report (ACFR) in
conformity with Generally Accepted Accounting Principles (GAAP). The report will be made
available to the public. The ACFR shall be prepared in accordance with the standards
established by the GFOA for the Certificate of Achievement for Excellence in Financial
Reporting Program.
The Certificate of Achievement represents a significant accomplishment for a
government and its financial leadership. The program encourages governments to prepare and
publish an easily readable and understandable comprehensive annual financial report covering
all funds and financial transactions of the government during the year. The ACFR provides users
with a wide variety of information useful in evaluating the financial condition of a government.
The program also encourages continued improvement in the city's financial reporting practices.
4.The city will ensure the conduct of timely, effective, and annual audit coverage of all
financial records in compliance with Local, State, and Federal laws.
Audits of the city's financial records provide the public assurance that its funds are being
expended in accordance with Local, State, and Federal laws and in accordance with Generally
Accepted Accounting Principles. Audits also provide management and the City Council with
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suggestions for improvement in its financial operations from independent experts in the
accounting field.
5.The city of Monticello will maintain a policy of full and open public disclosure of all
financial activity.
Full and open public disclosure of all financial activity provides the public with assurance
that its elected officials and administrators communicate fully all financial matters affecting the
public.
6.The modified accrual basis of accounting and budgeting is used for the governmental
funds.
Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual, i.e., both measurable and available. Available means collectible within
the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. Employee compensated
absences and principal and interest on long-term debt expenditures are recorded when due in
the current period.
7.The full accrual basis of accounting is used for proprietary funds for financial reporting
purposes.
Under this method, revenues are recorded when earned and expenses are recorded
when the related liability is incurred. For budget preparation and presentation, the proprietary
funds’ expenses are converted to expenditures and follow the same budget format as the
governmental fund types. Capital outlays in the enterprise funds are presented as expenditures
for budget basis but are recorded as assets along with associated depreciation expense on the
GAAP basis. Debt service principal payments in the enterprise funds are accounted for as
expenditures for budget purposes but are reported as reduction of long-term debt liability on
the GAAP basis. Recording capital outlays and principal payments on long-term debt as
expenditures for budget purposes, presents a clearer picture of the city’s financial operations, is
easier to administer for cash flow purposes, and is easier for the lay person to understand.
Cash Management & Investment Policy – Adopted October 23, 2017
SCOPE
This policy applies to all activities with regards to managing and investing the financial assets of
the City of Monticello. This policy pertains to the financial assets of all funds including the
General Fund, special revenue funds, capital project funds, debt service funds, enterprise funds,
and internal service funds. The covered funds are defined in the city’s Annual Comprehensive
Financial Report.
Except for cash in certain restricted funds, the City of Monticello consolidates all cash balances
from all funds into one central set of accounts. Each fund’s participation in this cash pool is
denoted by its equity-in-pooled-cash account. Investment income is allocated to the various
funds based upon the average monthly balance of each fund’s account. Use of this pooling-of-
funds method of accounting allows the city of Monticello to manage its cash more efficiently
and to maximize its investment earnings.
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OBJECTIVES
The primary objectives, in priority order, of city of Monticello’s investment activities shall be
safety, liquidity, and yield:
a.Safety
Safety of principal is the foremost objective of the investment program. Investments shall be
undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
The objective will be to mitigate credit risk and interest rate risk.
1.Credit Risk The city will minimize credit risk by
•Limiting investments to the safest types of securities;
•Pre-qualifying the financial institutions, brokers/dealers, intermediaries, and advisers
with which the city of Monticello will do business; and
•Diversifying the investment portfolio so that potential losses on individual securities
will be minimized.
2.Interest Rate Risk The city will minimize interest rate risk by:
•Structuring the investment portfolio so that securities invested from operating funds
mature to meet cash requirements for ongoing operations, thereby minimizing the
need to sell securities on the open market prior to maturity; and
•Investing operating funds primarily in shorter-term maturities, money market funds,
or similar investment pools.
b. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that
may be reasonably anticipated. This will be accomplished by structuring the portfolio so that
securities mature concurrent with cash needs to meet anticipated demands (static liquidity). In
addition, since all possible cash demands cannot be anticipated, the portfolio shall consist
largely of securities with active secondary or resale markets (dynamic liquidity).
c.Yield
The City of Monticello’s investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, commensurate with
Monticello’s investment risk constraints and the cash flow characteristics of the portfolio.
Return on investment is of least importance compared to the safety and liquidity objectives
described above. The core of investments is limited to relatively low risk securities in
anticipation of earning a fair return relative to the risk being assumed. Securities shall not be
sold prior to maturity with the following exceptions:
•a declining credit security may be sold early to minimize the loss of principal;
•a security may be sold to maximize gain, when appropriate;
•a security swap may be appropriate to improve the quality, yield, or target duration in
the portfolio; or
•a security may be sold based upon liquidity demands of the portfolio.
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AUTHORITY
Management responsibility for the investment program and for ensuring compliance with this
policy is hereby delegated to the Finance Director and is derived from Minnesota statutes and
mayor & council actions. The Finance Director shall be responsible for all transactions
undertaken and shall establish a system of procedures and internal controls for the operation
of the investment program consistent with this policy. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures established by
the Finance Director. All participants in the investment process shall seek to act responsibly as
custodians of the public trust. No officer or designee may engage in an investment transaction
except as provided under the terms of this policy and supporting procedures.
The Finance Director shall establish written statements of investment policy procedures for the
operation of the investment program consistent with this policy. Such procedures shall include
explicit delegation of authority for persons responsible for investment and cash management
transactions. The Finance Director is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the city of Monticello are protected
from loss, theft, or misuse. The internal control structure shall be designed to provide
reasonable assurance that these objectives are met. The concept of reasonable assurance
recognizes that the cost of control should not exceed the benefits likely to be derived and that
the valuation of costs and benefits requires estimates and judgments by management.
The internal controls shall address the following points at a minimum: control of collusion,
separation of transaction authority from accounting and recordkeeping, custodial safekeeping,
avoidance of physical delivery securities, clear delegation of authority to subordinate staff
members, written confirmation of transactions for investments and wire transfers, dual
authorizations of wire transfers, staff training, and review, maintenance and monitoring of
security procedures both manual and automated.
The city may engage the services of one or more external investment managers to assist in the
management of the city’s investment portfolio in a manner consistent with the city’s objectives.
Such external managers may be granted discretion to purchase and sell investment securities in
accordance with this Investment Policy. Such managers must be registered under the
Investment Advisers Act of 1940.
ETHICS & CONFLICTS OF INTEREST
The Finance Director and other employees involved in the investment process shall refrain from
personal financial activity that could conflict with the proper execution and management of the
investment program, or which could impair their ability to make impartial investment decisions.
The Finance Director and other employees involved in the investment process shall disclose to
the mayor & council any material financial interests in financial institutions with which they
conduct business. They shall further disclose any personal financial/investment positions that
could be related to the performance of the city’s portfolio. The Finance Director and other
employees involved in the investment process shall subordinate their personal investment
transactions to those of the city of Monticello shall refrain from undertaking personal
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investment transactions with the same individual with whom business is conducted on behalf
of the city.
PRUDENCE
The general investment policies of the city of Monticello will be guided by the "prudent person"
standard. Those with investment responsibility for public funds are fiduciaries and, as such,
shall exercise the judgment and care, under circumstances then prevailing, which persons of
prudence, discretion, and intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as well as the
probable income to be derived.
The standard of prudence shall be applied in the context of managing the overall portfolio.
Investment officers, acting in accordance with this investment policy and exercising due
diligence, shall be relieved of personal responsibility for an individual security's credit risk or
market price changes, provided significant deviations from expectations are reported in a
timely fashion and appropriate action is taken to control adverse developments. Investment
officers acting in good faith are not personally liable for investment or deposit losses.
AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Finance Director shall designate and maintain a list of financial institutions and depositories
authorized to provide investment services. In addition, a list will also be maintained of
approved security brokers/dealers that maintain an office within the State of Minnesota. These
may include "primary" dealers or regional dealers that qualify under Security and Exchange
Commission's Uniform Net Capital Rule (Rule 15C3-1). The mayor & council shall designate the
financial institution for the city’s operating account.
All financial institutions and brokers/dealers that wish to become qualified bidders for
investment transactions must supply the following:
•a copy of the latest audited financial statements demonstrating compliance with state
and federal capital adequacy guidelines
•proof of state registration,
•evidence of adequate insurance coverage,
•certification of having read, understood, and agree to comply with Monticello’s Cash
Management and Investment Policy,
•proof of National Association of Securities Dealers (NASD) or Financial Industry
Regulatory Authority (FINRA) certification (brokers/dealers only), and
•completed broker/dealer questionnaire (brokers/dealers only).
An annual review of the financial condition and registration of qualified financial institutions
and broker/dealers may be conducted by the Finance Director.
Financial institutions, which serve as depositories of city funds, shall comply with all prevailing
provisions of Minnesota statutes, and shall meet the established criteria for overall financial
strength, adequate capitalization, appropriate liquidity, and proper collateralization to
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reasonably ensure the safety and availability of such deposits. To monitor and assess the overall
financial strength of current and potential depositories, the city will utilize third-party rating
agencies.
AUTHORIZED AND SUITABLE INVESTMENTS
Authorized investments for municipalities in Minnesota are stipulated in Minnesota State
Statutes. Although the following lists of authorized and prohibited investments for the city of
Monticello is slightly more restrictive than what is allowed under state law, it is in full
compliance with Minnesota State Statutes.
The Finance Director is authorized to invest in the following:
•Demand deposits, of commercial banks, saving and loan associations, and federal savings
banks authorized to do business in the State of Minnesota and authorized as described
above, and to the extent that the deposit is fully insured by the Federal Deposit Insurance
Corporation or collateralized as required in Minnesota State Statutes.
•Time deposits and certificates of deposit of commercial banks, saving and loan
associations, and federal savings banks authorized to do business in the United States or
its territories to the extent that the investment is fully insured by the Federal Deposit
Insurance Corporation or collateralized as required in Minnesota State Statutes.
•Governmental bonds, notes, bills, mortgages, and other securities, which were direct
obligations or are guaranteed or insured issues of the United States, its agencies, its
instrumentalities, or organizations created by an act of Congress, excluding mortgage-
backed securities
•State and local government obligation as follows:
o an obligation of the State of Minnesota or any of its municipalities,
o obligation of other state and local governments that have taxing power and are rated
“A” or better by a national bond rating service.
o general obligations of the Minnesota Housing Finance Agency that are rated “A” or
better by a national bond rating service.
o general obligations of housing finance agencies of other states, provided that they
include a moral obligation of the state, and they are rated “A” or better by a national
bond rating service,
o general revenue obligation of any agency or authority of the State of Minnesota other
than those found already mentioned above that are rated “AA” or better by a national
bond rating service.
o Repurchase agreements whose underlying purchased securities consist of U.S.
government obligations, U.S. government agency obligations, or U.S. government
instrumentality (including government sponsored enterprises) obligations. Adoption
of a master repurchase agreement by the mayor & council is required before the
Finance Director is authorized to enter into a repurchase agreement.
o Banker’s Acceptances of United States Corporation or their Canadian subsidiaries that
are rated “A1” by Moody’s Investors Service and/or P1 by Standard and Poor’s
Corporation and matures in 270 days or less. Banker’s Acceptances can only be
48Table of Contents
purchased if the yield is greater than the United States Treasury obligations or Federal
Agency issues.
o Guaranteed investment contracts if issued and guaranteed by a United States
commercial bank or a United States insurance company. The credit quality of the
issuer and guarantor shall be rated in the highest category by the major national rating
services. The contract shall provide the governmental entity a non-penalized right of
withdrawal of the investment if the credit quality of the investment is downgraded.
o Commercial Paper issued by United States corporations or their Canadian subsidiaries
that are rated “A1” by Moody’s Investors Service and/or “P1” by Standard and Poor’s
Corporation and matures in 270 days or less.
o Money market funds consisting of United States Treasury Obligations and/or Federal
Agency Issues.
PROHIBITED INVESTMENTS
The Finance Director is currently prohibited from investing in securities that are considered
highly sensitive, including the following:
•Purchases on margins or short sales.
•Derivative securities that are, in effect, a leveraged bet on future movements of interest
rates or some price index.
•Mortgage-backed securities due to their complexity and prepayment rate uncertainty.
•Reverse repurchase agreements (lending securities with an agreement to buy them back
after a stated period of time).
COLLATERALIZATION
The provisions of Minnesota State Statutes require that banks and savings and loan institutions
collateralize all deposits of public funds. The city also requires collateralization of time deposits
and repurchase agreements. Banks and savings and loan associations are authorized to use any
of the investments as specified by Minnesota State Statutes as collateral. In order to anticipate
market changes and provide a level of security for all funds, the collateralization level will be
110% of the market value of principle and accrued interest. Collateral will always be held by a
third party. A clearly marked evidence of ownership (safekeeping receipt) will be supplied to
the city and retained.
SAFEKEEPING AND CUSTODY
Pledged collateral consisting of instruments of the United States Government, U.S. government
agencies, and U. S. government sponsored enterprises will be safe kept at a Federal Reserve
Bank Branch. Other acceptable collateral that cannot be held by the Federal Reserve shall be
held by a non-affiliated, independent, third-party safekeeping institution with whom the city
has a current custodial agreement. A clearly marked evidence of ownership (safekeeping
receipt) will be supplied to the city and retained. The right of collateral substitution upon prior
notification and acceptance by the city is granted.
49Table of Contents
All securities transactions, including collateral for repurchase agreements shall be conducted on
a delivery-versus-payment (DVP) basis to ensure that securities are deposited in the city’s
safekeeping institution prior to the release of funds.
DIVERSIFICATION
Diversification of investments reduces overall portfolio risks while attaining market average
rates of return. The city of Monticello will diversify its investments by security type, sector
(excluding U.S. Treasury securities), maturity, and institution. With the exception of U.S.
government securities, U.S. government agency securities, U.S. government sponsored
enterprise securities, certificates of deposit, collateralized bank money market accounts, and
authorized local government investment pools, no more than 25% of the city of Monticello’s
total investment portfolio will be invested in a single security type. To provide assurance that
the city will be able to continue financial operations without interruption and dependent upon
interest rates, satisfaction with services, and practicality, the city of Monticello may utilize more
than one financial institution as its depository.
MAXIMUM MATURITIES
To the extent possible, the city of Monticello will attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow, the city will not
directly invest from operating funds in securities maturing more than five (5) years from the
date of purchase. However, the city of Monticello may collateralize its repurchase agreements
using longer-dated investments not to exceed fifteen (15) years to maturity.
Reserve funds and other funds with longer-term investment horizons may be invested in
securities exceeding five (5) years if the maturity of such investments is made to coincide as
nearly as practicable with the expected use of funds. No investment shall have a maturity
exceeding twenty (20) years from the time of purchase. The intent to invest securities with
longer maturities shall be approved by the Finance Director.
Because of the inherent difficulties in accurately forecasting cash flow requirements, a portion
of the portfolio shall be continuously invested in readily available funds such as demand
accounts, local government investment pools, money market funds, or overnight repurchase
agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations. The
city will not actively buy and sell investments but realizes the risk of not seeking higher market
returns for longer maturities outweighs occasional liquidity demands exceeding cash and
money market investments.
PERFORMANCE STANDARDS
The investment portfolio will be managed in accordance with the parameters specified within
this policy. The portfolio should obtain a market average rate of return during a
market/economic environment of stable interest rates. The Finance Director will establish a
series of appropriate benchmarks which portfolio performance shall be compared on a regular
basis. The benchmarks shall be reflective of the actual securities being purchased and risks
undertaken, and the benchmarks shall have a similar weighted average maturity and credit
profile as the portfolio.
50Table of Contents
REPORTING
The Finance Director will maintain investment reports that provide a clear picture of the status
of the current investment portfolio. The report shall include a management summary that will
allow the city of Monticello to ascertain whether investment activities during the reporting
period have conformed to the investment policy. Information contained within the reports shall
include the following:
•A listing of the individual securities held at the end of the reporting period by authorized
investment category.
•Term and maturity date of all investments listed.
•Par value and current market value of all investments listed.
•Yield to maturity or worse call of portfolio investments.
•Percentage of portfolio represented by each investment category.
POLICY CONSIDERATIONS
Any investment currently held that does not meet the guidelines of this policy shall be
exempted from the requirements of this policy. At maturity or liquidation, such monies shall be
reinvested only as provided by this policy.
This Statement of Cash Management and Investment Policy was adopted by motion/resolution
of the city’s mayor & council. The Finance Director and City Administrator will review this policy
annually. Any modifications made to this policy must be approved by resolution of the mayor &
council.
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Balanced Budgets Practices
A BALANCED BUDGET is as a situation where total revenues and other financing sources is
equal to (or greater than) total expenditures and other uses. Revenues and other financing
sources increase financial resources. Expenditures and other financing uses decrease financial
resources.
A balanced budget does not dip into reserves or fund balances. However, an unbalanced
budget (deficit) is not necessarily poor fiscal management. For example, debt service funds
often accumulate resources in the year prior to expenditure, and debt-financed capital projects
frequently stretch over multiple years. The city has never used debt to finance current or
ongoing expenditures.
It is the city’s practice to adopt balanced budgets for the General Fund and the Community
Center Fund, both of which are supported, to some extent, by property taxes.
Property Taxes 8,985,000$ Personnel Services $4,542,664
Franchise & Other Taxes 324,000 Supplies 931,650
Licenses & Permits 482,000 Other Services & Charges 7,055,786
Intergovernmental Revenues 825,000 Capital Outlay 644,900
Charges for Services 1,514,900 Debt Service -
Fines & Forfeits 78,500 Operating Transfers 6,000
Miscellaneous 971,600
Total $13,181,000 Total $13,181,000
General Fund
Revenues and Other Sources Expenditures and Other Uses
B
A
L
A
N
C
E
D
Surplus
Revenues and Other Sources
GREATER than
Expenditures and Other Uses
Deficit
Revenues and Other Sources
LESS than
Expenditures and Other Uses
52Table of Contents
Absence of a line in the above chart is due to the fund having a balanced budget (zero effect on
Fund Balance/Working Capital) for 2025. Deficits reflect planned use of fund balance or future
bond issuance to reimburse for upfront costs.
$(3,500) $(3,000) $(2,500) $(2,000) $(1,500) $(1,000) $(500) $- $500 $1,000 $1,500
Economic Development Authority
Benefit Accrual
Central Equipment
IT Services
Facilities Maintenance
Fiber Optics
Deputy Registrar
Liquor
Stormwater
Sewer
Water
BCOL Sales Tax
Park Dedication
Park & Pathway Improvement
Street Lighting Improvement
Capital Projects
2020A G.O. Bonds
2019A G.O. Bonds
2018A G.O. Bonds
2017A G.O. Bonds
2016A G.O. Bonds
2015B G.O. Bonds
Monticello Community Center
Small Community Development Grant
Cemetery
General Fund
Thousands
Budgeted Change in Fund Balances/Working Capital
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THE BUDGET PROCESS
BUDGET DEVELOPMENT PROCESS
To initiate the budget process, the Finance Director grants access for all department heads and
supervisors to submit budget requests via the city’s financial software. Each department works
with its related boards or commissions to ensure the priorities of each recommending body are
reflected in staff’s requests. Department leaders will consider the council’s strategic goals (for
example, invest in people) in relation to their requests (for example, reclassifying positions to
reflect job responsibilities more accurately and to encourage professional growth of staff which
increases contributions to the city). The City Administrator, Finance Director, and Finance
Manager then meet with each department leader to review the requests made. These meetings
are focused on gaining clarity, aligning expectations, and defining how requests support the
city’s mission and goals.
Requests are categorized as personnel, notable operating expenditures, equipment, and capital
expenditures. Each category is discussed at public budget workshops along with new or notable
changes to funding sources and projected changes to the city’s tax capacity and levy. Significant
increases or decreases from the previous budget are highlighted to focus on high-level goals for
the upcoming year. The council then asks questions and gives feedback for staff to research and
present at the next public budget workshop.
Following any adjustments to the proposed budget, a preliminary tax levy resolution is
prepared, and a public hearing is held in September. The Council may again adjust the levy
(lower, not higher) and/or budget following the public hearing, after which time, the Council
adopts the final tax levy and final budget resolutions in December.
BUDGET CALENDAR/PROCEDURES
The following budget timeline outlines the process the city followed for creation and adoption
of the 2025 budget.
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PRESENTATION
The text of each department’s budget summary customarily contains six sections of information
for each activity. Some activities also include highlights or accomplishments for the prior year
and/or the coming year.
•The first section provides a description of the activity.
•The second section describes its major objectives to be accomplished.
•The third section identifies issues/challenges the activity/division faces.
•The fourth section lists the workload/performance indicators for the division.
•The fifth section provides detailed financial information.
•The sixth section provides budget commentary.
The financial information includes expenditure information for the last two completed fiscal
years, the budgeted and draft yearend amounts for the current year (i.e. amounts may not
match the final 2024 Annual Comprehensive Financial Report), and the proposed amounts for
the 2025 budget year. Costs are segregated into six basic classifications: personnel services
(wage & benefits); supplies; other services and charges; capital outlay; debt service; and
Date Activity
April 26, 2024
1. 2025-2029 capital equipment/projects (CIP) worksheets and 2025 budget
worksheets to department heads.
2. Department heads meet with various advisory boards and commissions for
input into 2025 preliminary budget and CIP.
May 23, 2024 2025-2029 CIP and 2025 budget worksheets due to finance department
June, 2024
1. Department directors and supervisors meet with city administrator and
finance staff to develop 2025 preliminary budget and CIP.
2. Finance department develops revenue estimates and 2025 preliminary
property tax levy.
July 8, 2024 Budget process overview and considerations discussion at Council Workshop #2.
July 22, 2024
Public City Council Budget Workshop #2. Workshops with city council, which are
open to the public, are held to set 2025 goals and priorities and review draft
department budgets and CIP.
August 5, 2024 Public City Council Budget Workshop #3.
August 26, 2024 Public City Council Budget Workshop #4.
September 9, 2024 Public City Council Budget Workshop #5.
September 23, 2024 Council adopts 2025 preliminary city and HRA property tax levies. (2025
preliminary property tax levy certification due to Wright County by Sept. 30)
October/November 2024 City staff refine 2025 proposed budget and final property tax levy. County mails
TNT notices.
November 25, 2024 Public City Council Budget Workshop #6.
December 9, 2024 Council adopts 2025 budget and property tax levy.
December 10, 2024 City certifies final 2025 property tax levy to Wright County auditor and files TNT
Compliance and Tax Levy forms with the MN Department of Revenue.
January 1, 2025 2025 fiscal year begins.
55Table of Contents
operating transfers. Appropriation control is exercised only at the activity unit level and not at
the individual object of expenditure level.
The narrative information is presented together with the financial detail to assist readers in
understanding the planned outcomes for each activity/division, the purpose of each budget
unit, and major changes or expenditures for the coming year.
MONITORING AND REPORTING PROCESS
As the budget year proceeds, individual departments and the finance department have dual
responsibility for monitoring the status of each budget unit. Departments have primary
responsibility for monitoring the status of expenditures against their budget. This responsibility
includes informing the finance department of any significant departures from the plans
anticipated in the budget.
The finance department has overall responsibility for monitoring the budget-to-actual status of
all departments and funds. This is accomplished primarily through analysis of computerized
budget performance reports which compare appropriation amounts on a line-item basis with
actual expenditures throughout the year. These reports aid department staff in controlling
costs and function as an early warning system for the finance department. Department staff
may exercise their judgment in exceeding expenditures by object code, provided they do not
exceed the total amount appropriated for the budget unit.
The finance department reviews the budget reports and discusses any variances from expected
performance with the department staff. The finance department conducts budget reviews of
expenditures and revenues in its quarterly report to the council.
Significant changes in either expenditures or revenues may require a budget revision.
Recommendations are also made by the Finance Director for any recommended corrective
actions. It is the practice of the City of Monticello not to amend the budget unless absolutely
necessary.
BUDGET AMENDMENT PROCESS
State statute provides various ways to amend the budget. This first involves a reallocation of
existing appropriations among the line items within a specific fund. The second defines a series
of scenarios where the governing body has authority to amend the budget without a hearing
for donations, land sales, and fee-based budgets. All other increases in appropriation authority
that are not specifically permitted by statute must be approved through a public process.
The Finance Director is responsible for ensuring compliance with spending limitations imposed
by the budget. Accordingly, the Finance Director submits a quarterly financial report to the City
Council after three-, six-, nine-month periods, with the audit report serving as the twelve-
month report. The budget-to-actual reports evaluate overall revenues and expenditures in
comparison to the budgeted amounts. In cases where it appears the original spending authority
authorized will not prove sufficient, transfers of spending authority or additional spending
authority are requested together with explanations for the requests. The public approval
process for budget amendments is held if necessary.
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Financial Summaries
2025 Adopted Budget
ALL FUNDS SUMMARY BY FUND TYPE
The city adopts a balanced budget for the General Fund and the Monticello Community Center
(MCC) special revenue fund. A budget is balanced when revenues and other sources equal
expenditures and other uses. Fund balances/working capital increase with surpluses and
decrease with deficits.
Debt amortization and early redemption of issues can lead to a decline in fund balance for the
Debt Service Fund. Multiple debt service sub-funds are aggregated into one debt service fund
for reporting purposes. Prepaid assessments collected in prior years, included in the Jan 1
beginning fund balance, will be used in 2025 as a way to manage the property tax levy.
Capital Project Funds commonly accumulate resources in one budget period and expend those
resources over multiple budget periods. Expenditures of fund balance are anticipated in 2025.
Debt proceeds are not anticipated in 2025. There are also projects with expenditures in 2025
that will receive intergovernmental funding in future years.
Enterprise funds budget debt service and capital acquisitions as expenditures under the
modified accural basis. While that typically contributes to a budgeted negative net change in
fund balance/working capital, the budgeted expenditures increase assets or decrease liabilities
in the fund’s net posotion reported in the Annual Comprehensive Financial Report. The large
decrease budgeted in 2025 is for the use of accumulated funds in the utility trunk funds in prior
years.
Special Debt Capital Internal Discretely 2025
General Revenue Service Project Enterprise Service Presented Total
Fund Funds Funds Funds Funds Funds Component Unit Budget
Fund Balance/Working Capital - Jan. 1 9,363,385$ 1,492,629$ 466,770$ 10,860,710$ 39,697,142$ 5,571,217$ 6,753,309$ 74,205,162$
Revenues and Other Sources
Property Taxes 8,985,000$ 535,000$ 2,196,193$ 2,400,807$ -$ -$ 499,000$ 14,616,000$
Tax Increments - - - - - - 361,000 361,000
Franchise & Other Taxes 324,000 - - 150,000 - - - 474,000
Sales & Use Tax - - - 1,000,000 - - - 1,000,000
Sale of Goods - - - - 7,366,428 - - 7,366,428
Licenses & Permits 482,000 - - - 2,000 - - 484,000
Intergovernmental Revenues 825,000 - - 1,185,000 2,485,000 - - 4,495,000
Charges for Services 1,514,900 1,450,800 - - 8,853,209 1,893,900 - 13,712,809
Fines & Forfeits 78,500 - - - - - - 78,500
Special Assessments - - 231,769 101,809 30,000 - - 363,578
Miscellaneous 971,600 60,200 21,038 400,384 668,363 70,000 30,000 2,221,585
Contributed Capital - - - - - 10,100 - 10,100
Operating Transfers In - 100,000 - 1,282,000 - -6,000 1,388,000
Debt Proceeds - -- -- -- -
Total Revenues and Other Sources 13,181,000$ 2,146,000$ 2,449,000$ 6,520,000$ 19,405,000$ 1,974,000$ 896,000$ 46,571,000$
Expenditures and Other Uses
Personnel Services 4,542,664 1,195,454 - - 2,726,632 399,330 228,462 9,092,542
Supplies 931,650 130,700 - - 6,008,500 76,166 500 7,147,516
Other Services & Charges 7,055,786 756,846 3,000 - 4,706,268 811,224 178,436 13,511,560
Capital Outlay 644,900 20,000 - 6,918,000 10,079,000 667,280 349,602 18,678,782
Debt Service - - 2,609,000 - 366,600 - - 2,975,600
Operating Transfers Out 6,000 - - 380,000 1,002,000 - - 1,388,000
Total Expenditures and Other Uses 13,181,000 2,103,000 2,612,000 7,298,000 24,889,000 1,954,000 757,000 52,794,000
Net Change in
Fund Balance/Working Capital -$ 43,000$ (163,000)$ (778,000)$ (5,484,000)$ 20,000$ 139,000$ (6,223,000)$
Fund Balance/Working Capital - Dec. 31 9,363,385$ 1,535,629$ 303,770$ 10,082,710$ 34,213,142$ 5,591,217$ 6,892,309$ 67,982,162$
All FUNDS SUMMARY - BY FUND TYPE
57Table of Contents
Internal service funds provide services to other funds and typically function on a cost recovery
basis. The city has four: Facilities Maintenance Fund, IT Services Fund, Central Equipment Fund,
and Benefit Accrual Fund. Central Equipment Fund equipment purchases will slightly exceed
leaseback revenue in 2025 as the fund is intended to keep a steady revolving net posotion. The
Benefit Accrual Fund is the only internal service fund that does not record capital asset
acquisitons.
58Table of Contents
REVENUES BY CATEGORY AND FUND TYPE
Revenues are classified under one of fourteen major categories: property taxes, tax increments,
franchise & other taxes, sales & use tax, sale of goods, licenses & permits, intergovernmental
revenues, charges for services, fines & forfeits, special assessments, miscellaneous, contributed
capital, operating transfers in, and debt proceeds. The chart below shows the relative
percentage of 2025 budgeted revenues for these major categories for all funds combined.
Contributed capital and fines & forfeits are shown in the chart below as 0%; however each
category has budgeted revenues, these categories represent less than 0.5% of budgeted
revenues. There are no budgeted debt proceeds in 2025.
REVENUES BY TYPE, GENERAL FUND ONLY— Using those same revenue categories, the relative
percentages for the General Fund are shown below. The General Fund is comprised of a much
higher percentage of property taxes compared to other funds, levying 63% of the total city and
HRA combined tax levy, which is a decrease from 64% in 2024.
Property Taxes
31%Tax Increments
1%
Franchise &
Other Taxes
1%
Sales & Use Tax
2%
Sale of Goods
16%
Licenses & Permits
1%
Intergovernmental
Revenues
10%
Charges for
Services
29%
Fines & Forfeits
0%Special Assessments
1%
Miscellaneous
5%
Contributed Capital
0%
Operating
Transfers In
3%
Debt Proceeds
0%
2025 Revenues by Category -All Funds
Property Taxes
63%
Franchise &
Other Taxes
2%
Licenses & Permits
7%
Intergovernmental
Revenues
6%
Charges for
Services
12%
Fines & Forfeits
0%
Special
Assessments
0%Miscellaneous
10%
2025 Revenues by Category -General Fund
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The General Fund is the city’s primary property tax levying fund, and it accounts for 28%
of the overall budgeted revenues of the city. This is an increase from 17% in 2024, which
was lower than normal due to assumed bond proceeds which were not issued.
Special revenue funds, totaling 5% of appropriations (increased from 3% in 2023), rely
mainly on property taxes and charges for services.
The Debt Service Fund includes only non-enterprise and non-internal service fund debt.
These funds represent 5% of the city’s 2025 budgeted revenues and are supported with
property taxes and special assessments. This is an increase from 3% in 2024.
Capital project funds total 14% (down from 50% in 2024 including financing from bond
proceeds) of budgeted revenues, which includes property taxes, special assessments,
operating transfers in, franchise fees and intergovernmental revenues (grants) for capital
projects and acquisitions. No bond proceeds are anticipated in 2025.
Enterprise funds consist of water, sewer, stormwater, liquor, deputy registrar (DMV), and
fiber optics funds. These funds operate on a self-supporting basis, mostly from the sale of
goods and charges for services. They are responsible for 42% of the overall budgeted
revenue due to increase, which is an increase from 24% in 2024.
Internal Service funds consist of facilities maintenance, IT services, central equipment, and
benefits accrual. These funds are supported by staff allocation or rental charges from
other funds of the city. Appropriations are 4% of the city’s 2025 budget, which is more
than the 2% of budgeted revenues in 2024.
The discretely presented component unit (Economic Development Authority, or EDA,
Fund) was reclassified from a special revenue fund in the city’s 2022 ACFR. Revenues
consist of property taxes and tax increments, which represent 2% of the 2025 budgeted
revenues, an increase from 1% in 2024.
General
28%Special Revenue
5%
Debt Service
5%
Capital Projects
14%
Enterprise
42%
Internal Service
4%
Component Unit
2%
2025 Revenues by Fund Type
ϲϬTable of Contents
APPROPRIATIONS BY CATEGORY AND FUND TYPE
Expenditures, often called appropriations, are classified under one of six major categories:
personnel services (wages & benefits), supplies, other services & charges (professional fees,
utilities, etc.), capital outlay, debt service, and operating transfers out (other financing uses).
The chart below shows the relative percentage of 2025 budgeted expenditures for these six
major categories for all funds, combined.
APPROPRIATIONS BY TYPE, GENERAL FUND ONLY— Using those same categories of
expenditure type, the relative percentages of budgeted expenditures for the General Fund are
shown below. As you can see, the General Fund is comprised of a much higher percentage of
personnel services costs compared to all funds. The General Fund supports very little capital
improvements and no debt service compared to all funds overall.
Personnel
Services
17%
Supplies
13%
Other Services &
Charges
26%
Capital Outlay
35%
Debt Service
6%
Operating
Transfers Out
3%
2025 Appropriations by Category -All Funds
Personnel
Services
35%
Supplies
8%
Other Services &
Charges
51%
Capital Outlay
6%
2025 Appropriations by Category -General Fund
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In governmental agencies, personnel services (salaries, wages, and benefits) normally represent
the largest of these categories. However, due to the significant investment in infrastructure,
cities have a much higher percentage of the budget devoted to operating and capital costs,
including debt service, than most other governmental entities. One other factor is the city’s
contracts (other services and charges) for law enforcement, legal, and assessing services.
The General Fund (the city’s primary operating fund for general government operations)
accounts for 25% of 2025 appropriations of the city. This is an increase from 16% in 2024.
Special revenue funds, totaling 4% of 2025 appropriations (an increase from 2% in 2024),
include a variety of fee-supported funds including the community center and cemetery.
The Debt Service Fund includes only non-enterprise and non-internal service fund debt.
These funds represent 5% of the city’s 2025 appropriations for bond principal and interest
payments. This is an increase from 3% in 2024.
Capital project funds total 14% (up from 53% in 2024) of appropriations, which includes
costs for street construction for School Boulevard, street lighting and park improvements,
and other governmental capital asset acquisitions excluding internal service funds.
Enterprise funds consist of water, sewer, stormwater, liquor, deputy registrar (DMV), and
fiber optics funds. These funds operate on a self-supporting basis and are responsible for
47% of the overall 2025 appropriations. This is an increase from 23% in 2024 due to a
large project to extend trunk service lines to the west of the city along CSAH 39.
Internal Service funds consist of facilities maintenance, IT services, central equipment,
and benefits accrual. These funds operate to provide services to the other internal
departments of the city. Appropriations are 4% of the city’s 2025 budget, which is an
increase from 2% in 2024.
The discretely presented component unit, which is comprised of the Economic
Development Authority (EDA) activities, accounts for 1% of 2024 budgeted expenditures,
which is consistent with 2024.
General
25%Special Revenue
4%
Debt Service
5%
Capital Projects
14%
Enterprise
47%
Internal Service
4%
Component Unit
1%
2025 Appropriations by Fund Type
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INTERFUND TRANSFERS
Operating transfers support the operations of other funds, provide for special projects, and
contribute to debt service payments. The following schedule provides the 2025 budgeted
operating transfers:
Fund No.Transfer Out Fund Amount Fund No.Transfer In Fund Amount
101 General 6,000$ 213 Economic Development Authority 6,000$
403 Street Lighting Improvement 380,000 400 Capital Projects 880,000
609 Liquor 500,000 226 Community Center 100,000
653 Deputy Registrar 502,000 404 Park & Pathway Improvement 402,000
Total Transfers Out 1,388,000$ Total Transfers In 1,388,000$
SCHEDULE OF BUDGETED OPERATING TRANSFERS IN 2025
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ALL FUNDS SUMMARY BY YEAR
Property taxes increase with a higher levy set by the City Council. Tax increments will increase
in 2025 due to one newly certified district. Franchise & other taxes decrease to budget similar
to previous trends. Intergovernmental revenues are projected to decrease in 2025 due to fewer
capital projects with grant funding received. Fines & forfeits are projected to increase based on
trends. The decrease in contributed capital reflects conservative projections for development.
Operating transfers increase in 2025 to account for the Deputy Registrar Fund’s contribution to
the Park & Pathway Improvement Fund for new playground equipment. Debt proceeds
decrease with no anticipated bonds in 2025.
TOTAL ALL FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET ESTIMATED BUDGET CHANGE
Property Taxes 11,795,057$ 12,517,391$ 13,525,000$ 13,666,836$ 14,616,000$ 8.1%
Tax Increments 720,301 550,598 258,000 266,105 361,000 39.9%
Franchise & Other Taxes 469,436 425,618 521,500 435,757 474,000 -9.1%
Sales & Use Tax - - - - 1,000,000 ---
Sale of Goods 7,168,374 7,042,543 7,504,849 6,481,607 7,366,428 -1.8%
Licenses & Permits 615,184 933,766 489,000 929,276 484,000 -1.0%
Intergovernmental Revenues 2,414,662 2,992,834 6,153,513 1,621,301 4,495,000 -27.0%
Charges for Services 13,057,925 14,774,782 12,724,236 15,667,648 13,712,809 7.8%
Fines & Forfeits 36,808 52,413 51,600 65,940 78,500 52.1%
Special Assessments 780,485 1,239,361 361,098 1,528,100 363,578 0.7%
Miscellaneous 368,414 4,076,026 1,255,704 4,077,818 2,221,585 76.9%
Contributed Capital 653,225 3,914,741 85,500 369,156 10,100 -88.2%
Operating Transfers In 461,626 4,753,950 1,106,000 2,305,114 1,388,000 25.5%
Debt Proceeds - - 30,000,000 - - -100.0%
TOTAL REVENUES 38,541,497$ 53,274,023$ 74,036,000$ 47,414,658$ 46,571,000$ -37.1%
EXPENDITURES
Personnel Services 7,708,205$ 7,968,570$ 8,634,845$ 8,554,445$ 9,092,542$ 5.3%
Supplies 6,681,627 6,770,056 7,314,954 6,303,619 7,147,516 -2.3%
Other Services & Charges 12,496,639 11,962,291 13,211,407 13,379,309 13,511,560 2.3%
Capital Outlay 3,562,968 13,028,435 48,595,271 8,774,205 18,678,782 -61.6%
Debt Service 2,857,311 2,662,401 3,033,523 2,652,899 2,975,600 -1.9%
Operating Transfers Out 461,627 4,753,950 1,106,000 2,305,114 1,388,000 25.5%
TOTAL EXPENDITURES 33,768,377$ 47,145,703$ 81,896,000$ 41,969,591$ 52,794,000$ -35.5%
FUND BALANCE - JANUARY 1 57,884,040$ 62,657,160$ 68,785,480$ 68,785,480$ 74,230,547$
Excess (Deficiency) of
Revenues over Expenditures 4,773,120 6,128,320 (7,860,000) 5,445,067 (6,223,000)
FUND BALANCE - DECEMBER 31 62,657,160$ 68,785,480$ 60,925,480$ 74,230,547$ 68,007,547$
64Table of Contents
Personnel services budget increased by a 3.5% wage and health benefit increase budgeted in
2025. The addition of a new full-time administrative position for development services
contributed to the budgeted increase.
Estimated capital outlay expenditures decrease due to smaller active projects in 2025. The 2024
budget included construction of a new Public Works Facility, which is currently paused. Projects
included in the 2025 budget include improvements on School Boulevard and CSAH 39 (Golf
Course Rd) West, city facility repairs and improvements, extension of utility trunk lines,
upgrades to stormwater infrastructure (including Ditch 33), acquisition of equipment, among
other items.
Debt service decreases in 2025 due to amortization of existing debt and no new debt issued.
Notable operating transfers are from the Liquor Fund to the Capital Projects Fund to pay for the
capital outlay, from the Deputy Registrar Fund to the Parks & Pathway Improvement Fund for
new playground equipment, and from the Deputy Registrar Fund to the Community Center
Fund for operating support.
More detailed information on each fund, including the major funds, is included later in this
document.
65Table of Contents
FUND BALANCE/WORKING CAPITAL
FUND BALANCE is calculated as governmental fund assets minus liabilities. WORKING CAPITAL
is the modified accrual balance of resources in enterprise funds after factoring out long-term
assets and liabilities that do not impact current, near-term operations.
The fund balances in all debt service subfunds are projected to decrease due to the planned
spend down of accumulated fund balance, most notably from prepaid assessment revenues
received.
The Capital Projects Fund, Street Lighting Improvement Fund, and Park & Pathway
Improvement Fund are budgeted to decrease by more than 10% due to the planned use of fund
balance to support projects. The City budgeted to use reserves in the Capital Projects Fund for
some project costs in 2025 that will be reimbursed in future years when grant funding is paid
out from the State of Minnesota.
The Water, Sewer, and Stormwater funds are projected to decrease more than 10% due to
project expenditures for extension of trunk lines and improvements to Ditch 33. While the
working capital of the funds will decrease, the fund’s net position as reported in the City’s
Annual Comprehensive Financial Report will not decrease since the cash will be spent to
construct a capital asset. The Deputy Registrar Fund’s working capital balance is estimated to
decrease by more than 10% due to a budgeted transfer out to the Parks & Pathway
Improvements Fund for the installation of new playground equipment at West Bridge Park.
The Liquor Fund’s working capital balance is estimated to increase by more than 10% due to a
budgeted transfer out to the Capital Projects Fund for capital improvements less than the
projected net profits of the fund.
66Table of Contents
Projected Beginning Projected Ending
Fund Balance/Estimated Estimated Fund Balance/
Working Capital Revenues Appropriations Working Capital
General Fund 8,206,698$ 13,181,000$ (13,181,000)$ 8,206,698$
Special Revenue Funds
Cemetery 179,273 52,000 (36,000) 195,273
Small Community Development Grant 984,152 27,000 - 1,011,152
Monticello Community Center 311,231 2,067,000 (2,067,000) 311,231
Total Special Revenue Funds 1,474,656 2,146,000 (2,103,000) 1,517,656
Debt Service Funds
2015B G.O. Bonds 89,231 184,000 (214,000) 59,231
2016A G.O. Bonds 67,304 502,000 (529,000) 40,304
2017A G.O. Bonds 60,616 441,000 (472,000) 29,616
2018A G.O. Bonds 76,875 422,000 (448,000) 50,875
2019A G.O. Bonds 68,001 696,000 (714,000) 50,001
2020A G.O. Bonds 106,552 204,000 (235,000) 75,552
Total Debt Service Funds 468,579 2,449,000 (2,612,000) 305,579
Capital Project Funds
Capital Projects 9,278,967 4,667,000 (5,787,000) 8,158,967
Street Lighting Improvement 1,377,519 160,000 (380,000) 1,157,519
Park & Pathway Improvement 737,744 687,000 (916,000) 508,744
Park Dedication 166,480 6,000 - 172,480
BCOL Sales Tax - 1,000,000 (215,000) 785,000
Total Capital Project Funds 11,560,710 6,520,000 (7,298,000) 10,782,710
Enterprise Funds
Water 12,256,220 2,084,000 (3,372,000) 10,968,220
Sewer 17,599,127 4,595,000 (7,902,000) 14,292,127
Stormwater 4,809,908 2,203,000 (3,156,000) 3,856,908
Liquor 1,013,087 7,441,000 (7,166,000) 1,288,087
Deputy Registrar 1,779,922 1,134,000 (1,312,000) 1,601,922
Fiber Optics 2,236,466 1,948,000 (1,981,000) 2,203,466
Total Enterprise Funds 39,694,730 19,405,000 (24,889,000) 34,210,730
Internal Service Funds
Facilities Maintenance 119,697 700,000 (700,000) 119,697
IT Services 373,504 594,000 (594,000) 373,504
Central Equipment 5,202,011 665,000 (645,000) 5,222,011
Benefit Accrual 373,259 15,000 (15,000) 373,259
Total Internal Service Funds 6,068,471 1,974,000 (1,954,000) 6,088,471
Discretely Presented Component Unit (1) (1)
Economic Development Authority 6,756,703 896,000 (757,000) 6,895,703
Total All Funds 74,230,547$ 46,571,000$ (52,794,000)$ 68,007,547$
CHANGES IN FUND BALANCE/WORKING CAPITAL - FISCAL YEAR 2025
67Table of Contents
Adopted
Actual Actual Budget Estimated Budget
2022 2023 2024 2024 2025
General Fund 7,042,801$ 8,178,678$ 8,178,678$ 8,206,698$ 8,206,698$
Special Revenue Funds
Cemetery 117,844 148,212 159,212 179,273 195,273
Small Community Development Grant 898,209 939,252 947,252 984,152 1,011,152
Monticello Community Center 449,422 543,906 543,906 311,231 311,231
Total Special Revenue Funds 1,465,475 1,631,370 1,650,370 1,474,656 1,517,656
Debt Service Funds
2015B G.O. Bonds 121,703 112,170 84,170 89,231 59,231
2016A G.O. Bonds 313,730 158,510 57,510 67,304 40,304
2017A G.O. Bonds 274,358 157,953 51,953 60,616 29,616
2018A G.O. Bonds 79,498 81,848 74,848 76,875 50,875
2019A G.O. Bonds 48,734 53,913 68,913 68,001 50,001
2020A G.O. Bonds 136,277 163,537 64,537 106,552 75,552
Total Debt Service Funds 974,300 727,931 401,931 468,579 305,579
Capital Project Funds
Capital Project 10,868,751 9,642,529 4,687,529 9,278,967 8,158,967
Street Lighting Improvement 1,257,883 1,697,878 452,878 1,377,519 1,157,519
Park & Pathway Improvement 1,207,607 777,439 690,439 737,744 508,744
Park Dedication 100,706 158,146 159,146 166,480 172,480
BCOL Sales Tax - - - - 785,000
Total Capital Project Funds 13,434,947 12,275,992 5,989,992 11,560,710 10,782,710
Enterprise Funds
Water 7,538,714 10,077,248 9,558,248 12,256,220 10,968,220
Sewer 11,416,131 14,931,964 14,778,964 17,599,127 14,292,127
Stormwater 3,180,381 3,991,777 3,384,777 4,809,908 3,856,908
Liquor 2,831,084 1,397,075 1,167,075 1,013,087 1,288,087
Deputy Registrar 2,258,160 1,351,671 1,274,671 1,779,922 1,601,922
Fiber Optics 1,287,975 1,767,458 1,884,458 2,236,466 2,203,466
Total Enterprise Funds 28,512,445 33,517,193 32,048,193 39,694,730 34,210,730
Internal Service Funds
Facilities Maintenance 35,907 96,277 96,277 119,697 119,697
IT Services 238,348 315,350 315,350 373,504 373,504
Central Equipment 3,725,643 4,534,085 4,767,085 5,202,011 5,222,011
Benefit Accrual 341,230 355,960 355,960 373,259 373,259
Total Internal Service Funds 4,341,128 5,301,672 5,534,672 6,068,471 6,088,471
Discretely Presented Component Unit
Economic Development Authority 6,886,064 7,152,644 7,121,644 6,756,703 6,895,703
Total All Funds 62,657,160$ 68,785,480$ 60,925,480$ 74,230,547$ 68,007,547$
ENDING FUND BALANCE/WORKING CAPITAL HISTORY
Fiscal Year Ended December 31,
68Table of Contents
REVENUE TRENDS & ANALYSIS
Revenues are conservatively estimated for every fund type. The schedule of revenue estimates
below is supported by detailed revenue estimates for each fund in subsequent sections. This
section of the budget highlights major revenue sources for all the city funds as combined and
for key governmental and enterprise funds: General Fund and Monticello Community Center
Fund (governmental funds), along with the Water, Sewer, Stormwater, Liquor, Deputy Registrar
and Fiber Optics funds (enterprise funds). Trends for these funds and individual revenues are
shown together with estimates for the coming year.
TOTAL CITY REVENUES AND OTHER SOURCES
Property taxes, charged to all non-exempt parcels in city limits, account for the single largest
revenue source for the city. Property taxes are levied for the following funds: General,
Monticello Community Center, Debt Service, Capital Projects, and Economic Development
Authority. Budget estimates are based off the final levy certified.
After property taxes, tax increments are another key revenue source of revenue for the
Economic Development Fund accounting for 40% of 2025 budgeted revenues. Budget estimates
are taken from the prior year’s TIF collections and adjusted for known changes to each district.
Franchise & other taxes are difficult to predict because the cable franchise fees are paid to the
Sherburne-Wright Cable Commission, of which the city is a member. Cable franchise fees are
only remitted to the city if the commission votes to do so.
Sales & use tax in a new revenue source for Monticello beginning on April 1, 2025. Voters
approved a 0.5% sales and use tax to fund further buildout of the Bertram Chain of Lakes
(BCOL) Regional Athletic Park. The tax will be in effect for 20 years, or until $15 million is raised,
whichever comes first.
Sales of goods reflect sales at the city’s Hi-Way Liquors off-sale store. Budget estimates are
TOTAL ALL FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 11,795,057$ 12,517,391$ 13,525,000$ 13,666,836$ 14,616,000$ 8.1%
Tax Increments 720,301 550,598 258,000 266,105 361,000 39.9%
Franchise & Other Taxes 469,436 425,618 521,500 435,757 474,000 -9.1%
Sales & Use Tax - - - - 1,000,000 ---
Sale of Goods 7,168,374 7,042,543 7,504,849 6,481,607 7,366,428 -1.8%
Licenses & Permits 615,184 933,766 489,000 929,276 484,000 -1.0%
Intergovernmental Revenues 2,414,662 2,992,834 6,153,513 1,621,301 4,495,000 -27.0%
Charges for Services 13,057,925 14,774,782 12,724,236 15,667,648 13,712,809 7.8%
Fines & Forfeits 36,808 52,413 51,600 65,940 78,500 52.1%
Special Assessments 780,485 1,239,361 361,098 1,528,100 363,578 0.7%
Miscellaneous 368,414 4,076,026 1,255,704 4,077,818 2,221,585 76.9%
Contributed Capital 653,225 3,914,741 85,500 369,156 10,100 -88.2%
Operating Transfers In 461,626 4,753,950 1,106,000 2,305,114 1,388,000 25.5%
Debt Proceeds - - 30,000,000 - - -100.0%
TOTAL REVENUES 38,541,497$ 53,274,023$ 74,036,000$ 47,414,658$ 46,571,000$ -37.1%
69Table of Contents
calculated assuming a modest amount of inflation and using analysis of the actual sales trends
over the past 3-5 years.
Intergovernmental revenues are projected to decrease due to fewer grants being received to
offset project costs in 2025.
Charges for services reflect changes to the city’s fee schedule, including water, sewer, refuse
and recycling charges, and community center membership and day pass fees.
Fines & forfeits increase to more accurately reflect recent trends.
Miscellaneous revenues, including donations, interest earned on investments, and rebates
related to a solar farm investment, are conservatively estimated based on prior year trends.
Known factors, such as the number of kilowatt-hours (kWh) subscribed in the solar program,
are included into the 2025 budget assumptions. While the investment earnings—the largest
portion of this revenue classification—have increased with higher rates in the market,
adjustments to market value create volatility that makes estimating difficult.
Operating transfers are expected to increase in 2025 due to lower funding from the Liquor Fund
to the Capital Projects Fund in 2025 offset by a new, one-time transfer from the Deputy
Registrar Fund to the Parks & Pathway Improvement Fund to fund the replacement of
playground equipment in West Bridge Park.
No new debt is planned in 2025.
The chart below provides an overall picture of estimated revenues and other sources in 2025.
Any categories showing 0% are simply rounded from less than 0.5%.
Property Taxes
31%
Tax Increments
1%
Franchise &
Other Taxes
1%
Sales & Use Tax
2%
Sale of Goods
16%
Licenses & Permits
1%
Intergovernmental
Revenues
10%
Charges for
Services
29%
Fines & Forfeits
0%Special
Assessments
1%
Miscellaneous
5%
Contributed
Capital
0%
Operating
Transfers In
3%
Debt Proceeds
0%
2025 Revenues by Category -All Funds
70Table of Contents
PROPERTY TAXES
The city relies on property taxes to support functions such as general government, public
safety, public works, recreation and culture, capital outlay and debt service. For 2025, the
council adopted a general levy of $14,117,000, which is $1,043,000 (8.0%) higher than the prior
year. The EDA and council also adopted a Housing and Redevelopment Authority (HRA) special
benefit levy of $499,000, which is $48,000 (10.6%) greater than 2024. The HRA levy is recorded
in the Economic Development Authority (EDA) Fund.
The following chart reflects the changes in the tax levy over the last ten years:
Accounting for a variety of activities, the General Fund will receive 62% of the 2025 combined
property tax levies. However, property taxes provide 68% of the General Fund’s revenue. The
levy for the Monticello Community Center (MCC) increased $10,000 (1.9%) to $535,000. The
following chart represents the distribution of the tax levy for 2025.
When determining the property tax levy, City Council and staff consider the impact the levy will
have on various property owners. This impact is then balanced against services provided and
service levels. Estimated market values are converted to tax capacity by using specific state
formulas for various types of properties.
$-
$2
$4
$6
$8
$10
$12
$14
$16
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
City & HRA Property Tax Levies
City Tax Levy HRA Levy
General Fund
$8,985,000
62%
MCC Operations
$535,000
4%
HRA Levy
$499,000
3%
Capital
$2,400,807
16%
Debt Service
$2,196,193
15%
2025 Property Tax Levy
71Table of Contents
GENERAL FUND
The General Fund is used to account for all financial resources of the city, except for those
required to be accounted for in another fund. Major functions supported by General Fund
revenues include administration and finance, police and fire services, public works, and
recreation and culture.
Revenue is estimated to be $13,181,000 (+3.3%) for the 2025 budget year. The primary General
Fund source of revenue is property taxes at $8,985,000 (+4.0%), which accounts for 68% of
total revenues. At 11%, 7% and 6%, respectively, charges for services, intergovernmental
revenues, and miscellaneous revenues are the only other categories to exceed 5% of total
revenues.
The following charts depicts General Fund revenues as shown in the 2025 adopted budget:
The following chart represents General Fund revenues trends.
MONTICELLO COMMUNITY CENTER
The Monticello Community Center (MCC) provides a facility with space for a variety of
recreational, professional, and educational opportunities. Aside from its portion of the property
tax levy and an annual transfer form the Deputy Registrar Fund, the MCC is supported by a
variety of fees for memberships, activities, rentals, and concessions.
General Fund Revenues -2025
Property Taxes (68%)
Franchise & Other Taxes (3%)
Licenses & Permits (4%)
Intergovernmental Revenues (6%)
Charges for Services (11%)
All Other (8%)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
ACTUAL ACTUAL BUDGET BUDGET
2022 2023 2024 2025
Revenues -General Fund
Miscellaneous
Fines & Forfeits
Charges for Services
Intergovernmental
Revenues
Licenses & Permits
Franchise & Other Taxes
Property Taxes
72Table of Contents
WATER AND SEWER FUNDS
Water and sewer charges for services are primarily comprised of providing Monticello residents
and businesses with water and sewer services. Based partially on the level of consumption,
these utility funds each have separate charges for delivered services. The city sets rates to
cover operating costs, a portion of depreciation, and debt service. The water and sewer funds
are expected to provide some level of future support for debt service incurred to make water
and sewer system improvements.
In 2018, the sewer fund shows increased revenue because the city sold a parcel of property
that had been used for storage and a bio-solids site. With 2025 shown as a projected amount,
the following chart plots revenues for water and sewer services on the primary axis (left)
against gallons of water sold on the secondary axis (right):
Water service charges have two components: base charge with a minimum usage amount and
consumption charge for usage above the minimum amount. Rates have increased steadily over
the last ten years: average annual base and consumption charge increases were around 6.6%.
Sewer charges, like water charges, have two components: base charge with a minimum usage
amount and consumption charge for usage above the minimum amount. Rates have increased
steadily over the years: average annual base and consumption charge increases were 4.5%.
For 2025, increases of10% for water and 2.5% for sewer, for both the base rate and usage rates,
were included in the budget for both funds. The following chart reflects the water and sewer
base rates over the last ten years:
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
ACTUAL ACTUAL BUDGET BUDGET
2022 2023 2024 2025
Revenues -Community Center Fund
Operating Transfers In
Miscellaneous
Charges for Services
Intergovernmental
Revenues
Property Taxes
0
100
200
300
400
500
600
700
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(Proj)
Ga
l
l
o
n
s
S
o
l
d
(
M
i
l
l
i
o
n
s
)
Re
v
e
n
u
e
s
(
M
i
l
l
i
o
n
s
)
Water & Sewer Revenues
Water Revenue
Sewer Revenue
H20 Sold (Gallons)
73Table of Contents
STORMWATER FUND
The Stormwater Fund was established in 2019 along with the creation of a per drainage unit
user charge. Each residential dwelling is equivalent to one drainage unit, and non-residential
properties are equivalent to 7 drainage units per rounded impervious surface area. The fee
increases to $4.75/month in 2025.
DEPUTY REGISTRAR (DMV)
The city is authorized by the State of Minnesota to operate a DMV. Fees collected from motor
vehicle licenses are the DMV’s main revenue source. Fees are regulated by the state.
The following chart shows the history of DMV revenues by transaction type over a five-year
period. The State transitioned from MNLARS to MNDrive in late 2020, which tracks transactions
differently. Regardless, 2020 and 2021 were incredibly busy years for the DMV as the pandemic
caused changes in operations and increased car sales contributed to increased workload.
$-
$2
$4
$6
$8
$10
$12
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mo
n
t
h
l
y
B
a
s
e
C
h
a
r
g
e
Water and Sewer Base Rates
Water
Sewer
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(Proj)
Mo
n
t
h
l
y
B
a
s
e
C
h
a
r
g
e
Stormwater Revenues
Non-residential
Residential
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2020 2021 2022 2023 2024
DMV Transactions by Type & Annual Revenues
Drivers License ($11)
Game & Fish (Up to $1)
DNR ($7-$11)
Motor vehicle ($9-$13)
Annual Revenue
74Table of Contents
Motor vehicle licenses (new and renewals) as percentage of total transactions increased slightly
from 86% in 2023 to 87% in 2024.
LIQUOR FUND
With total 2023 sales of $7.05 million, Monticello’s municipal liquor store ranked in the top 3 of
Minnesota cities with only one store. While the COVID-19 pandemic caused a rapid increase in
sales in 2020, revenue growth slowed in 2021, remained steady in 2022, decreased slightly in
2023, and decreased further in 2024. Total sales have increased 1.7% from 2019. Construction
near the store and the city’s decision to not yet sell beverages with THC are believed to be the
top, but not only, factors in the 2024 decrease in sales.
The 2025 Liquor Fund budget reflects a projected sales trend to increase once again. The
Liquor Fund has one retail outlet: Hi-Way Liquors. This fund has provided vital resources for
many community projects including Bertram Chain of Lakes, Downtown Improvements and
other capital items. Conservative revenue estimates are used for budgeting purposes.
However, 2025 net cash flow from operations should remain stable around $750,000.
Beer accounts for approximately 51% of total sales; liquor and wine follow at 33% and 12%,
respectively. Non-alcohol items contribute 4%. Beer typically has the lowest gross margin at
24% and wine the highest at 38%. Liquor is in the middle at about 31%.
Beer
51%
Liquor
33%
Wine
12%
Misc.
4%
Hi-Way Sales by Category -2024
Liquor Store Revenue by Category
Category 2020 2021 2022 2023 2024 5 Yr Chg
Beer 3,838,912$ 3,665,223$ 3,695,976$ 3,571,363$ 3,306,855$ -14%
% Change 18.0% -4.5% 0.8% -3.4% -7.4%
Liquor 2,351,072$ 2,276,808$ 2,340,709$ 2,350,700$ 2,156,981$ -8%
% Change 16.4% -3.2% 2.8% 0.4% -8.2%
Wine 982,113$ 915,444$ 882,772$ 855,693$ 775,979$ -21%
% Change 9.9% -6.8% -3.6% -3.1% -9.3%
Other 235,777$ 253,775$ 257,966$ 276,834$ 247,998$ 5%
% Change 11.4% 7.6% 1.7% 7.3% -10.4%
Total Sales 7,407,874$ 7,111,250$ 7,177,423$ 7,054,590$ 6,487,813$ -12%
% Change 16.2% -4.0% 0.9% -1.7% -8.0%
75Table of Contents
FIBER OPTICS FUND (FiberNet)
Monticello’s telecommunications utility, FiberNet Monticello, provides internet, voice
(telephone) and video (TV) services. City residential and commercial customers can subscribe to
one, two, or all three services. FiberNet continues to face competition from two large private
providers with significant resources and challenges with the societal shift away from traditional
telephone and television services. As a result, subscriber counts for voice and video have
declined in recent years. Internet has shown occasional growth with more customers
streaming video services.
The data in the graphs below shows trends FiberNet subscribers since 2016:
In July 2016, the city contracted with Arvig to manage FiberNet. The contract was renewed for
an additional 5 years in 2021. Through leaner operations, shared resources, and economies of
scale, the Fiber Optics Fund has had positive cash flow from operations since 2019. However,
potential new service areas will cause increases in capital costs. Arvig consistently assesses the
marketplace and service delivery costs and will raise prices as needed.
643 526 451 385 323 289 256 233 218
1,506 1,545 1,549 1,631 1,801 1,808 1,752 1,701 1,697
465 427 383 354 315 297 275 248 229
0
500
1,000
1,500
2,000
2,500
3,000
2016 2017 2018 2019 2020 2021 2022 2023 2024
FiberNet Subscribers By Type
Phone
Internet
Television
76Table of Contents
TAX LEVY HISTORY
2022 2023 2024 2025
General Fund $7,475,000 $8,060,000 $8,640,000 $8,985,000
Percent Change 4.3% 7.8% 7.2% 4.0%
Special Revenue Funds
Monticello Community Center 485,000 515,000 525,000 535,000
Percent Change 0.0% 6.2% 1.9% 1.9%
Debt Service Fund
2015B GO Bonds 192,650 164,435 165,223 160,879
2016A GO Bonds 406,929 282,559 357,979 433,189
2017A GO Bonds 427,367 299,532 326,842 403,942
2018A GO Bonds 451,812 444,232 439,337 419,127
2019A GO Bonds 709,446 697,133 711,964 680,836
2020A GO Bonds 123,196 111,690 24,830 98,220
Total Debt Service Fund 2,311,400 1,999,581 2,026,175 2,196,193
Percent Change -18.4% -13.5% 1.3% 8.4%
Capital Project Funds
Capital Projects Fund 1,081,600 1,475,419 1,882,825 2,400,807
Percent Change 87.1% 36.4% 27.6% 27.5%
Discrete Component Units
Economic Development Authority 388,000 402,000 451,000 499,000
Percent Change 5.9% 3.6% 12.2% 10.6%
Total Tax Levy - All Funds $11,741,000 $12,452,000 $13,525,000 $14,616,000
Percent Change 2.7% 6.1% 8.6% 8.1%
Levy Summary
City General and Debt Levies 11,353,000$ 12,050,000$ 13,074,000$ 14,117,000$
Percent Change 2.6% 6.1% 8.5% 8.0%
HRA Levy 388,000$ 402,000$ 451,000$ 499,000$
Percent Change 5.9% 3.6% 12.2% 10.6%
TAX LEVY HISTORY
77Table of Contents
TAX CAPACITY HISTORY
The Housing Redevelopment Authority (HRA) special benefit levy is capped at 0.0185% of the
city’s taxable market value. The city’s taxable market value for taxes collected in 2025 totaled
$2,702,176,000. HRA levy proceeds can only be used for purposes included in the HRA Act
(Minnesota Statutes, Section 469.033, subd. 6). Those purposes include redevelopment to
correct or prevent blight and development of, or assistance to, housing for low- or moderate-
income persons.
In 2024, Northern States Power (dba Xcel Energy), the city’s largest taxpayer, succeeded in
getting the Minnesota Department of Revenue to lower the estimated market value of its
nuclear power plant yet again for taxes payable in 2025. Xcel’s estimated market value
decreased by 7.0%, and while residential decreased by 1.8%, commercial and apartment tax
bases grew significantly, and new construction contributed a 1.4% increase in tax base.
Therefore, the city’s tax capacity increased overall, but the tax burden shifted away from Xcel
to the other taxpayers.
The graph below reflects the annual change in the city’s property tax levy and the annual
change in Xcel’s property taxes owed. If the green column is larger than the blue column, Xcel
absorbed the entire levy and lowered the taxes paid by others. In the case where the green
column is negative, other taxpayers paid for the entire levy increase plus the amount Xcel’s
taxes declined.
2022 2023 2024 2025
Tax Capacity 31,073,603$ 34,393,769$ 37,843,681$ 37,461,713$
Percent Change 0.2% 10.7% 10.0% -1.0%
City Levy - Tax Capacity Rate 36.536 35.035 34.547 37.684
Percent Change 2.5% -4.1% -1.4% 9.1%
HRA Levy - Tax Capacity Rate 1.249 1.169 1.192 1.332
Percent Change 5.8% -6.4% 2.0% 11.8%
TAX CAPACITY HISTORY
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City Levy and Xcel Property Tax Change
City Levy Increase Xcel Change in City Taxes
78Table of Contents
LARGEST PROPERTY TAXPAYER
Current year property taxes are calculated on the taxable market value on January 2 of the
prior year. For tax year 2019, Xcel was successful in getting the Minnesota Department of
Revenue to change the valuation method for the plant. As a result, the plant valuation dropped
by nearly $81 million. The below schedule and graph reflect the importance of the plant to the
city’s tax base:
The plant’s percentage of the city’s total tax capacity (and its share of the annual property tax
levies) has been significant for many years. In 2016, the percentage was about 60% and
remained there until 2019, when it dropped to 56%. The percentage has continued to decline,
and 2024 estimates calculate Xcel’s percentage of tax base at 37%. This tax capacity decline
means the city’s other taxpayers absorbed more of the tax levy.
Taxes
Payable Year Amount $ Change Amount $ Change % Chg.Amount $ Change % Chg.
2016 779,539,900$ 72,894,400$ 15,590,798$ 1,457,888$ 10% 5,374,045$ 323,635$ 6%
2017 832,073,500$ 52,533,600$ 16,641,470$ 1,050,672$ 7% 5,520,059$ 146,014$ 3%
2018 877,855,100$ 45,781,600$ 17,557,102$ 915,632$ 6% 5,676,496$ 156,437$ 3%
2019 789,572,500$ (88,282,600)$ 15,791,450$ (1,765,652)$ -10% 5,410,467$ (266,029)$ -5%
2020 780,422,700$ (9,149,800)$ 15,608,454$ (182,996)$ -1% 5,457,964$ 47,497$ 1%
2021 806,039,800$ 25,617,100$ 16,120,796$ 512,342$ 3% 5,748,515$ 290,551$ 5%
2022 776,200,500$ (29,839,300)$ 15,516,287$ (604,509)$ -4% 5,669,031$ (79,484)$ -1%
2023 796,071,000$ 19,870,500$ 15,905,303$ 389,016$ 3% 5,572,423$ (96,608)$ -2%
2024 761,493,000$ (34,578,000)$ 15,214,102$ (691,201)$ -4% 5,256,016$ (316,407)$ -6%
2025 708,188,490$ (53,304,510)$ 14,163,770$ (1,050,332)$ -7% 5,337,475$ 81,459$ 2%
Northern States Power (dba Xcel Energy)
Taxable Market Value Tax Capacity City Property Tax on Plant
$780 $832 $878
$790 $780 $806 $776 $796 $761 $708
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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Xcel Power Plant -Taxable Market Value
79Table of Contents
REVENUE SOURCES BY FUND
Property Tax Franchise Sales & Sale of Licenses/
Taxes Increments & Other Taxes Use Tax Goods Permits Intergovernmental
General Fund 8,985,000$ -$ 324,000$ -$ -$ 482,000$ 825,000$
Special Revenue Funds
Cemetery - - - - - - -
Small Cities Development Program - - - - - - -
Monticello Community Center 535,000 - - - - - -
Total Special Revenue Funds 535,000 - - - - - -
Debt Service Funds
2015B G.O. Bonds 160,879 - - - - - -
2016A G.O. Bonds 433,189 - - - - - -
2017A G.O. Bonds 403,942 - - - - - -
2018A G.O. Bonds 419,127 - - - - - -
2019A G.O. Bonds 680,836 - - - - - -
2020A G.O. Bonds 98,220 - - - - - -
Total Debt Service Funds 2,196,193 - - - - - -
Capital Project Funds
Capital Project 2,400,807 - - - - - 1,185,000
Street Lighting Improvement - - 150,000 - - - -
Park & Pathway Improvement - - - - - - -
Park Dedication - - - - - - -
BCOL Sales Tax - - - 1,000,000 - - -
Total Capital Project Funds 2,400,807 - 150,000 1,000,000 - - 1,185,000
Enterprise Funds
Water - - - - - 2,000 -
Sewer - - - - - -1,000,000
Stormwater - - - - - -1,485,000
Liquor - - - - 7,366,428 - -
Deputy Registrar - - - - - - -
Fiber Optics - - - - - - -
Total Enterprise Funds - - - - 7,366,428 2,000 2,485,000
Internal Service Funds
Facilities Maintenance - - - - - - -
IT Services - - - - - - -
Central Equipment - - - - - - -
Benefit Accrual - - - - - - -
Total Internal Service Funds - - - - - - -
Discretely Presented Component Unit
Economic Development Authority 499,000 361,000 - - - - -
Total All Funds 14,616,000$ 361,000$ 474,000$ 1,000,000$ 7,366,428$ 484,000$ 4,495,000$
Revenue Classifications
80Table of Contents
Charges for Fines &Special Miscell-Contributed Operating Debt
Services Forfiets Assessments aneous Capital Transfers Proceeds Total
General Fund 1,514,900$ 78,500$ -$ 971,600$ -$ -$ -$ 13,181,000$
Special Revenue Funds
Cemetery 47,700 - - 4,300 - - - 52,000
Small Cities Development Program - - - 27,000 - - - 27,000
Monticello Community Center 1,403,100 - - 28,900 - 100,000 - 2,067,000
Total Special Revenue Funds 1,450,800 - - 60,200 - 100,000 - 2,146,000
Debt Service Funds
2015B G.O. Bonds - - 18,098 5,023 - - - 184,000
2016A G.O. Bonds - - 65,110 3,701 - - - 502,000
2017A G.O. Bonds - -33,612 3,446 - - - 441,000
2018A G.O. Bonds - - - 2,873 - - - 422,000
2019A G.O. Bonds - - 12,276 2,888 - - - 696,000
2020A G.O. Bonds - - 102,673 3,107 - - - 204,000
Total Debt Service Funds - - 231,769 21,038 - - - 2,449,000
Capital Project Funds
Capital Project - - 101,066 100,127 - 880,000 - 4,667,000
Street Lighting Improvement - - - 10,000 - - - 160,000
Park & Pathway Improvement - - - 285,000 - 402,000 - 687,000
Park Dedication - - 743 5,257 - - - 6,000
BCOL Sales Tax - - - - - - - 1,000,000
Total Capital Project Funds - - 101,809 400,384 - 1,282,000 - 6,520,000
Enterprise Funds
Water 1,862,750 - 9,000 210,250 - - - 2,084,000
Sewer 3,329,143 - 16,000 249,857 - - - 4,595,000
Stormwater 662,791 - 5,000 50,209 - - - 2,203,000
Liquor - - - 74,572 - - - 7,441,000
Deputy Registrar 1,100,750 - - 33,250 - - - 1,134,000
Fiber Optics 1,897,775 - - 50,225 - - - 1,948,000
Total Enterprise Funds 8,853,209 - 30,000 668,363 - - - 19,405,000
Internal Service Funds
Facilities Maintenance 650,000 - - 50,000 - - - 700,000
IT Services 584,000 - - 10,000 - - - 594,000
Central Equipment 644,900 - - 10,000 10,100 - - 665,000
Benefit Accrual 15,000 - - - - - - 15,000
Total Internal Service Funds 1,893,900 - - 70,000 10,100 - - 1,974,000
Discretely Presented Component Unit
Economic Development Authority - - - 30,000 - 6,000 - 896,000
Total All Funds 13,712,809$ 78,500$ 363,578$ 2,221,585$ 10,100$ 1,388,000$ -$ 46,571,000$
Revenue Classifications (continued)
81Table of Contents
LONG RANGE FINANCIAL PLANS
General Fund Community Center Capital Projects EDA
Routine
Expenditures
Expected to rise at the pace of
inflation but mitigated by gains
in productivity. Some capital
expenditures are incorporated
as routine through rental
charges by internal service
funds. Future additions to staff
and an increase to the law
enforcement rate and patrol
have an impact going forward.
Expected to rise at the pace of
inflation. Routine major non-
capital expenditures (such as
replacement of fitness
machines) vary by year, but are
being completed modestly and
strategically as the current
ecomony continues to affect
discretionary spending such as
fitness memberships.
N/A Non-TIF expenditures are
expected to rise at the pace of
inflation. A new Administrative
Assistant in the Development
Services department led to an
operating budget increase in
2025.
Non-routine
Expenditures
Basic level of non-routine items
are included in overall budget
but vary within each budget
unit from year-to-year.
Large R&M items will be
supported by operations, and
capital expenditures are paid
for by the city's Capital Projects
Fund.
Projects in 2025 include School
Blvd Improvements, Country
Road 39 West Pedestrian
Improvements, and Community
Center site work. See CIP.
Addtionally, completion of the
Downtown Pedestrian &
Roadways Improvements will
also occur in 2025.
Tax increment financing (TIF)
expenditures will vary
considerably from year-to-year
in each district as development
occurs and depending on
specific agreements with
developers.
Revenues
Property taxes of $8,985,000
provide 68% of General Fund
revenue. The budget is
somewhat limited by
sustainable growth in the tax
levy. The city looks to diversify
revenues by implementing more
charges for services, as
applicable. Additional revenue
is earned from a solar farm
investment that began in 2020.
The property tax levy is set at
$535K in 2025. User fees are
expected to cover a significant
portion of on-going
expenditures. However, the
current ecomony continues to
affect discretionary spending
such as fitness memberships.
Other support includes an
annual transfer from the
Deputy Registrar Fund.
In the past, state street aid has
been used as temporary
financing and later replaced
with debt proceeds. The city is
analyzing a greater use of
grants, the tax levy and existing
reserves to control its debt
levels.
Tax increment revenues widely
vary from district to district but
not much from year-to-year.
Often reserves (accumulation
of prior year increments) are
used to fund projects. The 2025
HRA levy is $499,000.
Debt
None anticipated.None anticipated. To note, debt
for recreational projects either
requires voter approval or must
be incurred as part of a lease-
purchase agreement with the
EDA.
None anticipated in 2025. The
City is reserving debt capacity
in preparation for $40M for
construction of a new Public
Works Facility, currently
projected for 2027. The debt
needed to finance this project
will be a significant amount of
the city's debt capacity. The
general fund and capital
project fund levies may be used
to offset the impacts of
additional debt levies.
None anticipated. To note,
intrafund loans from the EDA
General sub-fund will finance
some TIF activities.
82Table of Contents
Water Sewer Liquor Fiber Optics Central Equipment
Routine
Expenditures
Expected to rise at the
pace of inflation but
mitigated by
reinvestment in plant
and equipment. Average
annual capital
expenditures financed on
a pay-as-you-go basis
are estimated at
$140,000.
Expected to rise at the
pace of inflation but
mitigated by
reinvestment in plant
and equipment. Average
annual capital outlays
financed on a pay-as-you-
go basis estimated at
$270,000.
Expected to rise at the
pace of inflation and
changes in demand. Cost
of sales are typically
passed onto customers
through higher sales
prices. The Liquor Store
maintains a consistent
gross profit margin near
26%, which is sufficient
to cover other operating
costs, such as staff
wages.
Routine expenditures are
expected to rise at the
pace of inflation and
continue to be fully
covered by operating
revenues.
N/A
Non-routine
Expenditures
2025: $530k CSAH 39
West utility extensions.
2025-2028: $40M water
treatment facility.
2025-2030: $3.7M Fallon
Avenue trunk line
improvements phased
with associated
development.
2025: $332k WWTP roof
replacements.
2025 & 2027: $3.6M
CSAH 39 West utility
extensions.
2027 & 2030: $5.3M
Fallon Avenue trunk line
improvements phased
with associated
development.
The fund generates
sufficient annual
revenues to support its
needs.
Nothing planned in 2025.
Non-routine expenditures
are currently fully
supported by operating
revenues. However, non-
routine expenditures are
tied to development,
which is unpredictable.
Reserves from recent
operating revenues
provide a safety net.
2025: $250k extensions
to new neighborhoods.
Estimated future
investments in
equipment average
$375,000 annually.
Amounts for future years
in the CIP reflect ideal
timing for replacement of
equipment, but will be
adjusted as equipment is
evaluated or as financing
allows.
Revenues
In anticipation of a new
water treatment plant,
the city increased usage
rates by 10% and
access/trunk fees by 3%
in 2025.
A formal rate study for
base, usage, and
development-related
charges is in progress.
User rates are expected
to rise to provide for pay-
as-you-go routine system
replacement or
regulatory upgrades.
System expansion is
funded by access and
trunk charges on
development. Anticipated
rate increases are 3%
annually.
A formal rate study for
base, usage, and
development-related
charges is in progress.
Sales grew signficantly in
2020 and have cooled in
the years since. Future
sales are projected
conservatively as
economic fluctuations
are difficult to predict.
Revenues mainly consist
of charges for services to
those subscribers to
FiberNet's services. The
current management
agreement with Arvig
expires on June 30, 2026.
Rental revenues
(expenditures in other
funds, funded by
revenues sources in
other funds) rise with
equipment purchases.
However, once equipment
is considered paid for,
rental charges cease for
that piece of equipment.
Debt
The city was awarded
$11M from the State of
Minnesota to support
construction of a water
treatment plant. A
Minnesota Public
Facilities Authority
(MPFA) loan is
anticipated for the
remaining $31M
construction costs.
The Minnesota Public
Facilities Authority
(MPFA) may provide
funding for future
projects. Revenue bonds
may be sold if reserves
are depleted, however
none are anticipated.
None anticipated.None anticipated.
However, the requirement
to install service to all
new developments could
call for issuing debt in
the future.
None anticipated.
83Table of Contents
As part of the budget process, council and staff review service needs, growth trends, and capital
investment requirements. A long-term financial plan (LTFP) model was developed in 2022 and is
updated annually. However, the following discussion will focus on the city’s four main operating
funds: General, Monticello Community Center, Water, and Sewer. This is done in conjunction
with the Capital Improvement Plan (CIP), which is a five- to ten-year forecast that includes
funding sources. Financial planning is segregated into two components: operations for the four
main operating funds and capital investments (CIP).
The Stormwater, Liquor, Deputy Registrar, and Fiber Optics enterprise funds are not specifically
covered in this discussion. The Stormwater Fund is still relatively new, and the capital needs
and planning are still somewhat unknown. The liquor store and DMV are retail operations with
no major forecasted capital investment needs. The Fiber Optic Fund presents challenges in a
dynamic and competitive market where the strategies and business plan need consistent
refinement, especially considering the influence of development and industry trends, both of
which are outside of the city’s control.
Items impacting long range financial planning:
• Current financial position (fund balances) and growth trends, inflation, and aspirations
• Debt burden
• Tax base considerations and concentration
• Regulatory environment
• Condition of existing capital assets
84Table of Contents
The city annually adopts a balanced budget for the General Fund. However, after 2025, annual
expenditure and revenue increases are projected to change at differing rates. Therefore, the
expenditure line in the following graph doesn’t always match the height of the revenue column.
The property tax levy and all other revenues are projected to increase at the same rate as
expenditures. According to policy, the city shall maintain a fund balance of 60-75% of the
following year’s budgeted expenditures. The following charts assume the city will continue to
provide the same current levels of service.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Chart 33.
General Fund
Expenditures and Revenues
All other revenues
Property tax
Expenditures
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Chart 32.
General Fund
Ending fund balance is projected to continue to be at levels above the minimum required
Ending Fund Balance
Ending Cash Balance
85Table of Contents
Like the General Fund, the Monticello Community Center (MCC) Fund adopts a balanced
budget. Changes caused by the COVID-19 pandemic created budgetary challenges for the fund,
relying on American Rescue Plan Act (ARPA) funding from 2021 – 2023 to support the MCC
Fund. The following charts assume a modest return of patrons while providing the same current
levels of service. Future planning and budgets, including timing and magnitude of capital
improvements, will address the negative cash and fund balance issue identified in the LTFP.
($1.2)
($1.0)
($0.8)
($0.6)
($0.4)
($0.2)
$0.0
$0.2
$0.4
$0.6
$0.8
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Community Center Fund
Ending fund balance is not projected to be sufficient long-term
Ending Fund Balance
Ending Cash Balance
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Community Center Fund
Expenditures and Revenues
All other revenues
Property tax
Expenditures
86Table of Contents
The Water Fund has future funding challenges with plans to construct a water treatment facility
which is planned for construction in 2026-2028. The fund has no direct debt and has adequate
reserves to cover almost any expenditure for other major capital projects. However, the city’s
share of costs for the water treatment plant will require the issuance of debt, which will be in
the form of a State of Minnesota Public Facilities Authority (PFA) loan. Additionally, with
significant development interest, it is anticipated the city will contribute to oversizing utility
trunk lines in the next 3-5 years. While the budget focuses on working capital, the LTFP
presents net position which includes long-term assets and debt as applicable.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Chart 44.
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
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Chart 46.
Water Fund
Revenues and Expenses
Revenues
Expenses
87Table of Contents
The Sewer Fund has its own funding challenges. Environmental regulatory changes may require
large investments in the wastewater treatment plant. Wastewater treatment plant
improvements are already planned for 2026 and 2027, and the model shows the Sewer Fund’s
current projections are sustainable. Like the water fund, the LTFP presents net position which
includes long-term assets and debt as applicable rather than working capital which is reported
in the budget.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Chart 48.
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
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
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Chart 50.
Sewer Fund
Revenues and Expenses
Revenues
Expenses
88Table of Contents
LONG-TERM FISCAL OBJECTIVES
The city council and staff are committed to expending public resources in the most cost-
effective and economical manner possible to ensure the stability of the city property tax levy
and financial position. Considering changes to tax policy, state aid reductions for various
purposes, state-imposed levy limits in the past, and the potential of future levy limits, fiscal
strategies will need to be constantly monitored to ensure a balanced approach in providing
sufficient revenues to fund services.
1.Employ a strategy aimed at reducing the city’s reliance on the property tax levy to fund
basic services through sustainable revenue sources such as franchise fees, special revenues,
user fees, and charges for services.
The city’s property tax levy generates 68% of the General Fund’s revenue. This
overdependence is largely attributable to how state statutes allow cities to generate funding.
Monticello has a healthy tax base, which includes a nuclear power plant. The city’s tax levy has
recently been above inflation, however, that has not always been the case. The assessed value
at the nuclear power plant declined while all other property tax classes increased, which caused
another tax shift to other property taxpayers in the city. The city’s 2025 levy is set at an 8.0%
increase, which responds to the city’s significant forecast of upcoming capital costs while still
aiming to control the impact on property taxpayers who are also feeling the effects of inflation
now. The current council philosophy indicates a desire to balance the impacts to taxpayers
while not delaying necessary spending. While a growth plus inflation tax levy formula would not
reduce the dependence on property taxes, it would alleviate the strain placed on city finances
by inflation. City services will continue to be evaluated in relation to relevant funding sources,
promoting alternatives to traditional funding methodologies, and encouraging public-private
partnerships in service delivery systems.
2.The development and use of appropriate cost accounting structure which will lead to the
creation of individual cost centers for all city department activities to accurately reflect the
true cost of providing specific services.
The city employs a cost accounting system that is department specific and attempts to
accurately reflect service delivery costs at the department and division levels. By including all
supplemental services as they relate to personnel, charges and services, supplies, and capital
outlays, the city will further distinguish the total cost of services provided. The city analyzes
these costs at the sub-category detail levels in support of overall policy goals.
3.The adoption of a financial philosophy that seeks to spread the cost of significant capital
outlay expenditures over an extended period to ensure that current and future taxpayers
share equally in underwriting those costs.
The city continues to capitalize the cost of significant capital expenditures over several
years to ensure that both existing and future taxpayers share equally in the cost. In addition,
the city has dedicated a portion of the tax levy to underwrite the cost of selected capital
projects and equipment, avoiding a fiscal environment based on reactive tax and spending
policies. The five-year capital improvement planning process is critical in achieving these
results.
89Table of Contents
4.The development of a long-term financial model (proforma) that identifies anticipated
trends in community growth and establishes a link between fiscal targets and budgetary
expenditures.
The city contracted with Northland Securities, Inc. in 2022 to develop a financial model,
which is used to determine the long-term impacts of present-day expenditures and financing
decisions. Fiscal assumptions are based upon a complex set of financial data including growth
factors, tax capacity valuations, per capita spending, and debt ratios. The proforma is utilized as
a tool as part of the budget planning process to ensure that key short-term fiscal targets are in
line with long-term fiscal projections. The proforma is updated annually to ensure that long-
term fiscal outcomes remain consistent with council budgetary policies.
5.The development of work performance goals for each department to ascertain and
measure how each operating division contributes to the city’s overall public service mission.
Each department is responsible for identifying relevant performance data to allow for an
independent analysis of specific service outcomes. Data is reviewed to provide the council and
public with a better understanding of the operational demands, resource inputs, and
performance outcomes associated with a specific service delivery system. These performance
measures continue to be examined and refined to ensure the data presented is useful and
relevant.
6.The aggressive and appropriate investment of idle city funds to maximize the generation
of interest income, while ensuring adequate cash flow requirements.
Investment of city funds is controlled by state statute and managed by the Finance
Director. Idle funds are invested in a variety of financial instruments such as certificates of
deposit, federal agencies, and appropriately rated bonds. Long-term investing is designed to
achieve the best yield in the current market, following a strategy that structures long-term
investments in ladder format and reinvests short-term investment in rotating terms. While
volatility from year to year is seen as interest rates fluctuate and market values of investments
held change, investing brings solid returns in the long run.
7.Greater reliance on technology to enhance employee productivity in all areas of city
operations and improve customer communications.
The city has taken steps to invest additional time and energy on labor-saving technology,
such as software programming and electronic file storage. Imaging city records enables the city
to reduce storage areas presently dedicated to paper files and to look at more economical and
efficient systems of data retrieval.
8.Involving all employees in the process of re-engineering the work environment by
encouraging cross-training opportunities, reducing and eliminating bureaucratic barriers,
streamlining public process requirements, prioritizing transparency with the public, and
adopting private sector customer service business values in city operations.
City staff is encouraged to identify work practice issues that are inefficient or overly
bureaucratic. The management team is committed to involving their employees and fostering
an environment that challenges the status quo of city operations.
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9. Continuously reviewing opportunities to form partnerships with other community
stakeholders and neighboring communities to share services and equipment, jointly contract
with vendors and purchase equipment, and develop strategies to deal with local issues using
a regional approach.
The city has established several equipment and service delivery sharing arrangements
with other community stakeholders and neighboring communities and has joint powers
agreements in place on a variety of local and regional issues in planning, public safety and
public works initiatives.
Recent steps taken to achieve long-term fiscal objectives:
The city has shifted its focus from issuing debt for all street projects in the Pavement
Preservation Program to funding those projects on a pay-as-you-go basis due to the relatively
routine nature of road improvements throughout the city. The debt level and debt levy
capacities are reserved for major projects that are truly unique such as the Bertram Chain of
Lakes Regional Park, Public Works Facility construction, and The Pointes at Cedar development
area.
In 2021, the city created the Facilities Maintenance internal service fund. This allows costs for
city facility repairs and maintenance to be viewed across the board while also seeing each
department’s impact through the internal charges paid by each cost center. A new software
program, Cartegraph, was implemented to track work orders to provide the breakdown of costs
to each facility and department. A shift in 2024 brought the maintenance staff previously
operating solely out of the community center facility into further integration with the
centralized Facilities Maintenance department.
Also in 2021, the city prioritized investing in its Information Technology (IT) infrastructure by
hiring an internal IT Technician. This allowed for the transition from a break-fix strategy to a
purposeful, proactive strategy in dealing with the increasing use of software and ever
heightened cybersecurity threats. The city continues to strengthen and invest in the IT
department and related functions.
In 2023, the city increased its applications for external funding. Most notably, the city was
awarded $11 million from the State of Minnesota towards the cost of constructing a new water
treatment facility. Other funding was secured for capital projects like constructing roundabouts
at two major intersections on School Boulevard (Cedar Street and Edmonson Avenue) but also
operating initiatives like combating Emerald Ash Borer in our community. The city continues to
request and advocate for additional external funding for priority projects and initiatives.
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CAPITAL EXPENDITURES & CAPITAL IMPROVEMENT PLAN
INTRODUCTION
Capital expenditures (also called capital outlays) are the purchases of capital assets, which are
used in operations and have initial useful lives extending beyond a single reporting period.
These assets must also meet capitalization thresholds (see Appendix), which vary by asset
classification and typically costs more than $10,000.
Capital expenditures can be classified as either recurring or non-recurring. Large projects
adding to or replacing infrastructure are usually non-recurring in nature. Roundabout
installation and road improvements on School Boulevard, design/planning for a Water
Treatment Facility, extension of utility trunk lines, and improvements and oversizing in
conjunction with development on Fallon Avenue and 85th Street account for the bulk of the
2025 non-recurring projects. Large non-recurring projects are typically financed by debt,
intergovernmental revenue (state/federal grants and aids) and draws on reserves
accumulated in anticipation of the project.
The capital improvements presented in this section comprise the 2025-2029 Capital
Improvements Plan (CIP). Monticello’s CIP identifies capital and select major noncapital
expenditures in a comprehensive plan to forecast future resources needed to acquire or build
assets used in municipal operations. By integrating major noncapital expenditures, such as
maintenance items or asset purchases not meeting specific dollar thresholds, the city can better
plan and prepare for future financial challenges. However, the creation of a long-term financial
plan has allowed for some expenditures of this nature to be removed from the CIP.
WHAT IS A CAPITAL IMPROVEMENT PLAN?
A capital improvement plan is a five-year projection for the evaluation of the city's capital
needs. It serves as a guide for construction, development, and maintenance of the city's
infrastructure assets, as well as other less expensive assets, in the most cost-efficient manner
possible. It is the result of systematic review of each project, as it relates to the city council
goals and the established priority scheme, to maximize the use of all financial resources. The
Monticello CIP has four expenditure categories: capital improvements, vehicles and major
equipment, major repair and maintenance items, and small tools and equipment. Capital asset
classes also include land acquisitions.
While the plan serves as a long-range plan, it is reviewed annually and revised based on current
circumstances and opportunities. Priorities may change due to grant opportunities,
circumstances that caused a more rapid deterioration of an asset, or in response to
development interest. Projects may be revised for significant cost variances. The council holds
an annual goal setting workshop that ensures these projects and purchases continue to align
with the long-term vision.
WHAT ARE THE OBJECTIVES OF A CAPITAL IMPROVEMENT PLAN?
· To forecast public facilities and improvements in a timely and systematic manner while
providing an opportunity for residents and interest groups to provide input.
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· To strike a balance between needed public improvements and the present financial capability
of the city to provide for these improvements.
· To anticipate and project financing needs to maximize available federal, state, and county
funds, and enhance and protect future bonding capacity and ratings.
· To implement city council objectives as outlined in the Purpose and Mission and serve as a
guide for local officials in making budgetary decisions.
· To promote and enhance the economic development of the city of Monticello while balancing
the needs of new development with existing development.
The CIP is developed with the intent of improving the reliability of cost estimates and funding
forecasts by focusing on five years rather than only the upcoming year. This will enable decision
makers to identify opportunity costs of shifting priorities. It creates a better understanding of
the balancing act that is required to allocate scarce resources to capital improvement efforts.
WHAT IS THE CAPITAL IMPROVEMENT PLAN DEVELOPMENT PROCESS?
Assign Project Titles
Make the title descriptive of the nature and scope work.
Group projects in a meaningful way by category or initiative. Identify responsible staff and
comprehensive plan goals achieved with completion or acquisition of the project.
Formulate Project Descriptions
Include the target activities to be completed each year on the project. This is a brief statement
of the work that will be performed and its location.
Formulate Project Cost Estimates
Project costs are broken down into Land Acquisition, Planning/Design/Construction, and
Vehicles/Equipment/Furnishing
Document Operating Impact
Record the costs in the year they will initially occur. It will be assumed that the costs continue
from that point on unless information is provided otherwise. The following possibilities exist:
· Maintenance project that doesn’t require any more than is already in the budget for
maintenance.
· Maintenance project that replaces existing items with a more cost-effective material or
device that would result in a slight savings in operating dollars. Examples: more energy
efficient heating, ventilation, and air conditioning (HVAC) unit resulting in an electricity
savings.
· New project will always have an operating impact.
Note Unfunded Projects
· All projects not funded are placed on an unfunded list.
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Document Project Justifications
The following things are considered:
· Reason the project is necessary
· Related projects (timing issues)
· Coordination efforts required with other agencies (timing issues)
· Mandates and deadlines for compliance (timing issues)
· Service impact (number of participants impacted)
· New fees that could be generated because of the project (funding/cost recovery)
· Community goal references (refer to Strategic Goals & Strategies section)
· Safety requirements
Prioritize Projects
Priorities: required on all projects based on the following considerations:
1.Does this project preserve or improve public health and safety?
2.Does this project support the city’s strategic transition plan for economic development?
3.Does this project align with Council’s strategic priorities and/or the Comprehensive
Plan?
4.Does this project support redevelopment and reinvestment by maintaining what we
already have?
5.Does this project reduce operating and maintenance costs or provide for other
efficiencies?
6.Does this project create a new service or improve current service levels?
7.Does this project promote recreation and/or support natural resources?
Discuss draft CIP with the city council for review throughout budget workshops
· Five-year funded capital improvements
· Ranked list of unfunded needs
HOW DOES THE CAPITAL IMPROVEMENT PLAN IMPACT THE OPERATING BUDGET?
All capital improvement projects must show the operating budget impact at the time the
projects are submitted for consideration in the CIP. This includes the number of full-time
equivalent positions that would be needed or could be eliminated and the cost or savings for
salaries/benefits, supplies/services, and equipment. It would not be prudent to make funding
decisions in favor of a project the city could not afford to staff or maintain.
Capital improvements can impact the budget by increasing or decreasing revenues and
expenditures, for example by attracting new businesses; by requiring new employees or
additional maintenance or utility costs; or by reducing maintenance costs, utility costs, or
personnel costs (reduction in overtime or man-hours). Specifically, new equipment may be
more productive and less expensive to operate.
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Many projects are associated with prevention of future excessive costs that are difficult to
measure. The cost of the maintenance should not exceed the benefit of the asset. The projects
may have maintenance costs, but the existing maintenance budgets are sufficient. The priority
for available capital project funds has been maintenance of existing facilities and infrastructure.
Many of Monticello’s projects fall into this category.
One capital asset that requires a delicate balance of operating maintenance and capital
replacement is the city’s more than 80-mile street system. For more durable mill and overlay,
the city budgets regularly for chip sealing and crack sealing. These operating and capital
expenditures work together to prevent more expensive street reconstruction projects.
Finally, the city annually budgets for repairs or replacement of water and sewer mains through
each respective enterprise fund. For public utilities, customer satisfaction is difficult to quantify
in dollars. However, a generally satisfied customer may be less likely to complain about the rate
increases needed to support those services.
In the following table, items with an increase in operating costs are additional equipment or
new projects/improvements. Items with a decrease in operating costs are replacement
equipment with lower R&M in the near term. Items with both increases and decreases to
operating costs are noted with (+) and (-) in the Comment column. R&M expenses for roads
include estimates for snow removal, boulevard maintenance, street sweeping, crack sealing,
and striping. Listed amounts are for expenses more than those already being incurred. With no
impact on expenditures, some are replaced due to obsolescence or aesthetics. The amounts
listed are estimated; many of these amounts may or may not be close to those actually
incurred.
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Investment
Department - Operating Fund Amount Starting Year Amount Comment
Public Safety - General Fund
Utility 11 Pump Skid & UTV 100,000$ 2026 12,700$ CE lease (+) and R&M (-)
Public Works - General Fund
School Blvd Roundabouts (C24003)3,400,000$ 2026 3,000$ Landscaping
Haven Ridge Roundabout Oversizing 610,000$ 2026 6,100$ R&M
Fallon Avenue Reconstruction- Chelsea Rd to Fallon Dr 50,000$ N/A -$ Planning stage only
CSAH 39 Pedestrian Pathway - Elm to 7th (C24001)1,600,000$ 2026 5,000$ Pathway maintenance
Hydraulic Snow Blower 80,000$ 2025 9,600$ CE lease (+) and R&M (-)
Front Loader (Medium size)190,000$ 2025 22,700$ CE lease (+) and R&M (-)
Paver Trailer 45,000$ 2025 5,350$ CE lease (+) and R&M (-)
Recreation & Culture - General Fund
Library Fire System 11,000$ N/A -$ No change in R&M
MCC Jase Upgrade 15,000$ 2026 (1,000)$ Utilities
MCC Romp & Stomp Door to Hallway 12,000$ N/A -$ No change in R&M
MCC Window Replacement 100,000$ 2026 (5,000)$ R&M
Line Painter 65,000$ 2025 (6,600)$ CE lease (+) and Wages (-)
Ford F350 (replace F250)85,000$ 2025 14,900$ CE lease (+) and R&M (-)
Ford F350 (replace F150)80,000$ 2025 14,000$ CE lease (+) and R&M (-)
West Bridge Park Playground Equipment 650,000$ 2026 (3,000)$ R&M
BCOL Ballfields Future Phases 100,000$ 2027 35,000$ R&M
BCOL Maintenance Shop 80,000$ 2027 20,000$ Utilities and R&M
BCOL Pickleball Courts 35,000$ 2027 3,500$ Windscreens and R&M
Deephaven Playground 125,000$ 2026 1,250$ R&M
Haven Ridge Pathway Oversizing 141,000$ 2026 1,410$ R&M
Recreation - Community Center
Cardio Fitness Equipment 20,000$ 2026 (200)$ R&M
Public Works - Water Fund
Water Treatment Plant 1,000,000$ 2028 222,000$ Staffing & operations
Well Houses 1 & 2 Roofs 42,000$ N/A -$ No change in R&M
CSAH 39 West Utility Extension 530,000$ 2026 530$ R&M
Water F-450 Truck 75,000$ 2025 (750)$ R&M
Haven Ridge Trunk Oversizing 405,000$ 2026 2,025$ R&M
Fallon Avenue Reconstruction- Chelsea Rd to Fallon Dr 50,000$ N/A -$ Planning stage only
Public Works - Sewer Fund
WWTP Roofs 332,000$ N/A -$ No change in R&M
CSAH 39 West Utility Extension 3,600,000$ 2026 1,800$ R&M
Haven Ridge Trunk Oversizing 1,060,000$ 2026 5,300$ R&M
Fallon Avenue Reconstruction- Chelsea Rd to Fallon Dr 150,000$ N/A -$ Planning stage only
Public Works - Stormwater Fund
Ditch 33 Improvements 1,600,000$ 2027 1,000$ Cleaning & outfall inspections
Karlsburger Pond Expansion 900,000$ 2026 900$ R&M
Haven Ridge Trunk Oversizing 85,000$ 2026 425$ R&M
Fiber Optics Fund
Expansion to New Neighborhoods 250,000$ N/A -$ No routine R&M
Impact on
Operating Expense
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HOW IS INPUT FROM RESIDENTS INCORPORATED IN THE CIP DEVELOPMENT PROCESS?
Residents are involved in the capital improvements plan through participation at council
meetings, work sessions and public hearings, and through boards and commissions. Beyond
participation in boards and public meetings, the city makes a considerable effort to inform the
citizens through various publications, news releases, and the website along with holding public
input meetings for major projects and setting up booths at various city events to garner
feedback from residents and routine community visitors.
HOW IS THE CAPITAL IMPROVEMENT PLAN FINANCED?
In analyzing the financial viability of the capital improvements in the 2025-2029 CIP, the city has
three basic choices for methods of financing: pay-as-you-go, joint power agreement
development authority capital leasing, and debt financing. The following sources provide
revenue for the three financing methods:
General Fund revenues, such as property taxes, local government aid (not applicable to
the City of Monticello), and service charges are current revenues used to finance
relatively small capital outlays. For example, replacement of the library fire system.
The Central Equipment Fund, created for the purpose of establishing a revolving fund
for future equipment purchases, reduces the impact of large equipment purchases on
annual budget units. This fund purchases equipment and leases it back to the benefiting
budget units. The lease payments assure that equipment purchases will receive annual
funding and are set at rates to recover depreciation plus inflation, but not operating
costs such as repairs and maintenance (R&M), gas, or insurance. Similarly, internal
service funds have been established for Facilities Maintenance and IT Services, which
will also include equipment purchases related to each respective fund.
Enterprise fund revenues, derived from user charges, are used to finance capital
improvements and equipment necessary for delivering a specific service. Additionally,
accumulated revenues in enterprise funds can be transferred to other funds, specifically
the Capital Projects Fund, to provide financing for capital asset acquisitions. For
example, the utilities portion of a future Public Works Facility.
Federal and state grants provide funding for various capital improvement projects.
Other sources include local grants, donations, reserves, and other governmental units.
Debt issuance is used to finance large, non-recurring capital improvements. General
obligation improvement bonds and general obligation revenue bonds are mainly used to
finance improvements to the city’s infrastructure. Items identifying the Capital Project
Fund as funding source may need some level of debt issuance.
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The below graphs provide a breakdown of expenditures and funding sources within the CIP:
The large increase of capital activity in 2026-2028 is anticipates construction of facilities for
Water Treatment and Public Works. Notable 2025 projects include School Boulevard
roundabout installation/improvements, trail construction along west CSAH 39 (Golf Course
Road), extension of utility trunk lines along CSAH 39, new playground equipment in West Bridge
Park, construction of a roundabout and pathway and oversizing of utility trunk lines at Fallon
Avenue and 85th Street in conjunction with development, and the Ditch 33 Improvements.
2026 capital outlays consist of additional investments in the Water Treatment Plant
construction, park improvements, Pointes at Cedar planning, improvements to Cedar Street
near Block 34 (which anticipates private development in the next few years), and Bertram Chain
of Lakes (BCOL) projects.
Notable capital expenditures in 2027 include wastewater treatment plant updates, 4th Street
Park improvements, and additional buildout of the BCOL park. 2028 capital investments include
improvements to Chelsea Road, and a new section on the Great River Regional Trail. Plans for
2029 include mill and overlay projects, a fire engine replacement, and further BCOL
construction.
$-
$10
$20
$30
$40
$50
$60
2022
Actual
2023
Actual
2024
Projected
2025
Budgeted
2026
Budgeted
2027
Budgeted
2028
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2029
Budgeted
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CIP -Expenditures for FY 2022 -2029
Buildings Infrastructure - Streets Infrastructure - Utilities Improvements - Parks Vehicles & Equipment Land
$-
$10
$20
$30
$40
$50
$60
2022
Actual
2023
Actual
2024
Projected
2025
Budgeted
2026
Budgeted
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2028
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Budgeted
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CIP -Funding Sources for FY 2022 -2029
Capital Projects Fund BCOL Sales Tax Fund Central Equipment Fund Enterprise Funds Bond Proceeds External Grant Funding Other Funds
98Table of Contents
2025 through 2029
Capital Improvement Plan
Monticello, MNFunding Source Summary
Source 2025 2026 2027 2028 2029 Total
BCOL Sales Tax 215,000 1,300,000 3,000,000 3,000,000 7,515,000
Capital Project Fund 5,787,000 4,741,000 22,815,000 26,885,000 6,750,000 66,978,000
Cemetery Fund 70,000 70,000
Central Equipment Fund 645,000 466,404 450,000 298,557 1,859,961
Community Center Fund 20,000 35,000 60,000 115,000
Facility Maintenance Fund 400,000 400,000
Fibernet Fund 250,000 250,000
General Fund 11,000 50,000 35,000 96,000
IT Services Fund 77,200 77,200
Municipal Liquor Fund 100,000 150,000 250,000
Parks & Pathways Improvement Fund 916,000 2,323,000 4,880,000 2,078,700 920,000 11,117,700
Sewer Fund 332,000 1,065,652 1,000,000 83,000 2,480,652
Sewer Trunk Fund 4,810,000 235,000 3,850,000 8,895,000
Stormwater Fund 1,600,000 287,427 1,887,427
Stormwater Trunk Fund 985,000 100,000 55,000 1,140,000
Street Lighting Improvement Fund 500,000 500,000
Water Fund 1,117,000 11,150,000 20,000,000 8,000,000 183,000 40,450,000
Water Trunk Fund 985,000 305,000 2,400,000 260,000 3,950,000
GRAND TOTAL 17,673,000 21,731,056 53,919,627 43,595,257 11,113,000 148,031,940
ϵϵTable of Contents
2025 through 2029
Capital Improvement Plan
Monticello, MNProjects by Funding Source And Department
Source Project # Priority 2025 2026 2027 2028 2029 Total
BCOL Sales Tax
8: BCOL Regional Athletic Park
Ballfield Future Phases BCOL-01 100,000 3,000,000 3,000,000 6,100,000
Maintenance Shop BCOL-02 80,000 800,000 880,000
Pickleball Courts BCOL-03 35,000 500,000 535,000
8: BCOL Regional Athletic Park Total 215,000 1,300,000 3,000,000 0 3,000,000 7,515,000
BCOL Sales Tax Total 215,000 1,300,000 3,000,000 0 3,000,000 7,515,000
Capital Project Fund
1: City Facilities
MCC Parking Lot Resurface FAC-08 800,000 800,000
3rd Street Parking Lot Resurface FAC-09 180,000 180,000
Public Works Facility FAC-01 20,000,000 20,000,000 40,000,000
MCC Window Replacement FAC-17 100,000 200,000 300,000
MCC Jase Upgrade FAC-14 15,000 15,000
MCC Generator FAC-20 200,000 200,000
MCC Pool Filtration System FAC-22 150,000 150,000
MCC Romp & Stomp Door to Hallway FAC-15 12,000 12,000
MCC Mississippi Room Carpet FAC-16 50,000 50,000
MCC Pool Deck Resurface FAC-18 60,000 60,000
MCC Gym Acoustic Panels FAC-19 75,000 75,000
1: City Facilities Total 127,000 310,000 21,180,000 20,075,000 150,000 41,842,000
2: Transportation
CSAH 39 Pedestrian Pathway - Elm to 7th
(C24001)TRAN-01 1,600,000 1,600,000
Chelsea Road Improvements - Hwy 25 to
CSAH 39 TRAN-05 350,000 2,950,000 3,300,000
Sidewalk Gap Extensions TRAN-04 115,000 635,000 750,000
Mill & Overlay - 7th St - Minnesota St to
Fenning TRAN-06 300,000 3,400,000 3,700,000
Mill & Overlay School Blvd - Country Ln to
Fenning TRAN-08 300,000 1,900,000 2,200,000
2: Transportation Total 1,600,000 115,000 985,000 3,550,000 5,300,000 11,550,000
4: Parks & Recreation
City Welcome Signs PAR-03 60,000 60,000 60,000 180,000
MCC Skate Park Area PAR-16 100,000 100,000
4: Parks & Recreation Total 0 160,000 60,000 60,000 0 280,000
5: Fleet
Engine 12 FLT-20 1,300,000 1,300,000
5: Fleet Total 0 0 0 0 1,300,000 1,300,000
6: Downtown
Cedar Street Improvements - Broadway to
3rd DT-03 2,850,000 2,850,000
Cedar Street Improvements - Broadway to
River DT-04 500,000 500,000
Block 51 Public Parking Lot Expansion DT-01 100,000 100,000
6: Downtown Total 0 2,950,000 500,000 0 0 3,450,000
7: The Pointes at Cedar
School/Cedar & Edmonson Roundabouts PAC-04 3,400,000 3,400,000
Parkland Acquisition - Southern Pond PAC-01 600,000 600,000
Professional Services Contract - Phase I PAC-02 606,000 606,000
7: The Pointes at Cedar Total 3,400,000 1,206,000 0 0 0 4,606,000
ϭϬϬTable of Contents
9: Fallon Avenue Improvements
Fallon Ave Reconstruction - Chelsea to
Fallon Dr FAL-02 50,000 3,200,000 3,250,000
Haven Ridge Oversizing & Landscaping FAL-01 610,000 90,000 700,000
9: Fallon Avenue Improvements Total 660,000 0 90,000 3,200,000 0 3,950,000
Capital Project Fund Total 5,787,000 4,741,000 22,815,000 26,885,000 6,750,000 66,978,000
Cemetery Fund
4: Parks & Recreation
Riverside Cemetery Columbarium PAR-06 70,000 70,000
4: Parks & Recreation Total 0 0 70,000 0 0 70,000
Cemetery Fund Total 0 0 70,000 0 0 70,000
Central Equipment Fund
5: Fleet
Hydraulic Snow Blower FLT-01 80,000 80,000
Front Loader FLT-02 190,000 190,000
Ford F350 #209 FLT-06 85,000 85,000
Plow Truck FLT-11 401,309 401,309
Plow Truck FLT-14 450,000 450,000
Skid Steer FLT-16 98,557 98,557
Paver Trailer FLT-03 45,000 45,000
Ford F350 #214 FLT-07 80,000 80,000
Line Painter FLT-05 65,000 65,000
Blacktop Roller FLT-10 37,095 37,095
Utility 11 & UTV FLT-21 100,000 200,000 300,000
Scissor Lift & Trailer FLT-24 28,000 28,000
5: Fleet Total 645,000 466,404 450,000 298,557 0 1,859,961
Central Equipment Fund Total 645,000 466,404 450,000 298,557 0 1,859,961
Community Center Fund
4: Parks & Recreation
MCC Cardio Fitness Equipment PAR-12 20,000 20,000 20,000 60,000
MCC Floor Scrubber PAR-14 15,000 15,000
MCC Spin Bikes PAR-13 40,000 40,000
4: Parks & Recreation Total 20,000 35,000 60,000 0 0 115,000
Community Center Fund Total 20,000 35,000 60,000 0 0 115,000
Facility Maintenance Fund
1: City Facilities
Roof Replacements - Hail Damage FAC-23 300,000 300,000
Soccer Building Repairs FAC-24 100,000 100,000
1: City Facilities Total 0 400,000 0 0 0 400,000
Facility Maintenance Fund Total 0 400,000 0 0 0 400,000
Fibernet Fund
3: Utilities Infrastructure
FNM Haven Ridge & Featherstone/Hunter's
Crossing UTIL-06 250,000 250,000
3: Utilities Infrastructure Total 250,000 0 0 0 0 250,000
Fibernet Fund Total 250,000 0 0 0 0 250,000
Source Project # Priority 2025 2026 2027 2028 2029 Total
ϭϬϭTable of Contents
General Fund
1: City Facilities
Library Fire System FAC-03 11,000 11,000
Library Control System FAC-05 50,000 50,000
Library Lighting FAC-04 35,000 35,000
1: City Facilities Total 11,000 50,000 35,000 0 0 96,000
General Fund Total 11,000 50,000 35,000 0 0 96,000
IT Services Fund
4: Parks & Recreation
MCC Recreation/Employee Scheduling
Software PAR-15 77,200 77,200
4: Parks & Recreation Total 0 0 77,200 0 0 77,200
IT Services Fund Total 0 0 77,200 0 0 77,200
Municipal Liquor Fund
1: City Facilities
Liquor Store Roof FAC-06 100,000 100,000
Liquor Store Parking Lot Resurface FAC-07 150,000 150,000
1: City Facilities Total 0 100,000 150,000 0 0 250,000
Municipal Liquor Fund Total 0 100,000 150,000 0 0 250,000
Parks & Pathways Improvement
Fund
1: City Facilities
Park Building Sign FAC-13 23,000 23,000
MCC Pool Play Structure FAC-21 400,000 400,000
1: City Facilities Total 0 23,000 400,000 0 0 423,000
2: Transportation
Otter Creek Pathway - Chestnut to West
River TRAN-03 600,000 600,000
Great River Regional Trail Easement TRAN-02 20,000 20,000
2: Transportation Total 0 620,000 0 0 0 620,000
4: Parks & Recreation
Hunters Crossing Trail PAR-08 20,000 300,000 320,000
Pioneer Park Play Structure PAR-10 800,000 800,000
Great River Regional Trail PAR-07 75,000 1,778,700 1,853,700
River Mill Sidewalk to Playground PAR-09 20,000 20,000
River Walk Pier PAR-11 45,000 45,000
Front Street Pier PAR-05 40,000 40,000
Pioneer Park Disc Golf Course PAR-02 15,000 15,000
4th Street Park Improvements PAR-01 775,000 4,100,000 4,875,000
Ellison Playground Equipment PAR-04 600,000 600,000
4: Parks & Recreation Total 0 1,430,000 4,215,000 2,078,700 845,000 8,568,700
6: Downtown
West Bridge Park Playground Equipment DT-05 650,000 650,000
East Bridge Park Accessibility
Improvements DT-06 150,000 150,000 300,000
6: Downtown Total 650,000 150,000 150,000 0 0 950,000
7: The Pointes at Cedar
Deephaven Playground PAC-03 125,000 125,000
7: The Pointes at Cedar Total 125,000 0 0 0 0 125,000
8: BCOL Regional Athletic Park
Road Paving BCOL-04 100,000 100,000
8: BCOL Regional Athletic Park Total 0 100,000 0 0 0 100,000
9: Fallon Avenue Improvements
Haven Ridge Oversizing & Landscaping FAL-01 141,000 115,000 75,000 331,000
Source Project # Priority 2025 2026 2027 2028 2029 Total
ϭϬϮTable of Contents
9: Fallon Avenue Improvements Total 141,000 0 115,000 0 75,000 331,000
Parks & Pathways Improvement Fund Total 916,000 2,323,000 4,880,000 2,078,700 920,000 11,117,700
Sewer Fund
1: City Facilities
WWTP Roofs FAC-11 332,000 332,000
WWTP Generator Upgrades FAC-12 200,000 1,000,000 1,200,000
1: City Facilities Total 332,000 200,000 1,000,000 0 0 1,532,000
5: Fleet
Sewer Camera & Trailer FLT-09 165,652 165,652
F350 Truck #401 FLT-15 83,000 83,000
WWTP Gasifier Tank FLT-08 700,000 700,000
5: Fleet Total 0 865,652 0 83,000 0 948,652
Sewer Fund Total 332,000 1,065,652 1,000,000 83,000 0 2,480,652
Sewer Trunk Fund
3: Utilities Infrastructure
CSAH 39 West Utility Extension UTIL-01 3 3,600,000 3,600,000
3: Utilities Infrastructure Total 3,600,000 0 0 0 0 3,600,000
9: Fallon Avenue Improvements
Fallon Ave Reconstruction - Chelsea to
Fallon Dr FAL-02 150,000 3,850,000 4,000,000
Haven Ridge Oversizing & Landscaping FAL-01 1,060,000 235,000 1,295,000
9: Fallon Avenue Improvements Total 1,210,000 0 235,000 3,850,000 0 5,295,000
Sewer Trunk Fund Total 4,810,000 0 235,000 3,850,000 0 8,895,000
Stormwater Fund
3: Utilities Infrastructure
Ditch 33 Improvements UTIL-02 1,600,000 1,600,000
3: Utilities Infrastructure Total 1,600,000 0 0 0 0 1,600,000
5: Fleet
Street Sweeper FLT-13 287,427 287,427
5: Fleet Total 0 0 287,427 0 0 287,427
Stormwater Fund Total 1,600,000 0 287,427 0 0 1,887,427
Stormwater Trunk Fund
3: Utilities Infrastructure
Karlsburger Pond Expansion UTIL-04 900,000 900,000
Chelsea Rd Outlet Control UTIL-05 100,000 100,000
3: Utilities Infrastructure Total 900,000 100,000 0 0 0 1,000,000
9: Fallon Avenue Improvements
Haven Ridge Oversizing & Landscaping FAL-01 85,000 55,000 140,000
9: Fallon Avenue Improvements Total 85,000 0 55,000 0 0 140,000
Stormwater Trunk Fund Total 985,000 100,000 55,000 0 0 1,140,000
Street Lighting Improvement Fund
2: Transportation
Traffic Signal at Hwy 25/4th St TRAN-07 500,000 500,000
2: Transportation Total 0 0 500,000 0 0 500,000
Street Lighting Improvement Fund Total 0 0 500,000 0 0 500,000
Source Project # Priority 2025 2026 2027 2028 2029 Total
ϭϬϯTable of Contents
Water Fund
1: City Facilities
Water Treatment Plant FAC-02 1,000,000 11,000,000 20,000,000 8,000,000 40,000,000
Well Houses 1&2 Roofs FAC-10 42,000 42,000
1: City Facilities Total 1,042,000 11,000,000 20,000,000 8,000,000 0 40,042,000
5: Fleet
Water F-450 Truck FLT-04 75,000 75,000
Well #3 Generator FLT-17 183,000 183,000
200kw Portable Generator FLT-12 150,000 150,000
5: Fleet Total 75,000 150,000 0 0 183,000 408,000
Water Fund Total 1,117,000 11,150,000 20,000,000 8,000,000 183,000 40,450,000
Water Trunk Fund
3: Utilities Infrastructure
CSAH 39 West Utility Extension UTIL-01 3 530,000 530,000
3: Utilities Infrastructure Total 530,000 0 0 0 0 530,000
9: Fallon Avenue Improvements
Fallon Ave Reconstruction - Chelsea to
Fallon Dr FAL-02 50,000 2,400,000 2,450,000
Haven Ridge Oversizing & Landscaping FAL-01 405,000 305,000 260,000 970,000
9: Fallon Avenue Improvements Total 455,000 0 305,000 2,400,000 260,000 3,420,000
Water Trunk Fund Total 985,000 0 305,000 2,400,000 260,000 3,950,000
GRAND TOTAL 17,673,000 21,731,056 53,919,627 43,595,257 11,113,000 148,031,940
Source Project # Priority 2025 2026 2027 2028 2029 Total
ϭϬϰTable of Contents
DEBT
Debt is carried in two fund types: Governmental Funds and Enterprise Funds. Consequently,
debt has a different impact on the operations of each fund type. However, debt service is a
fixed cost that does not vary with activity levels. Debt amortization and redemption reduces
fixed costs, freeing resources for other purposes.
Debt is a valid way to match customers with the cost of providing a particular service. Current
service customers pay for current service delivery with annual debt service payments supported
by user fees and taxes. Future service customers make future debt service payments through
future taxes and user fees.
Governmental Funds
Governmental fund debt service is provided through debt service funds, which accumulate
money from various sources for principal and interest payments. Those sources can include
property taxes, special assessments, and transfers from enterprise funds collecting
development fees. The debt effect on services delivered through governmental funds with
current plant and equipment is somewhat diminished because the city is not constrained by
state-imposed levy limits for property taxes. When levy limits have been in place, statutes have
allowed for special levies for debt service. While there are limits to what taxpayers can bear,
Monticello has one of the lowest tax capacity rates in Wright County because of its large
commercial tax base—including the Xcel Energy nuclear power plant. Currently, the power
plant absorbs roughly 37% of any tax increase. The General Fund is primarily supported (about
2/3) by property taxes, and the Monticello Community Center (MCC) Fund is primarily
supported by charges for services but is supplemented by a property tax levy and transfer from
the Deputy Registrar Fund. High debt levels reduce the city’s ability to issue new debt for
capital assets, which may improve efficiency or meet a growing need.
Enterprise Funds
The Sewer Fund is the only enterprise fund with debt, the 2013B General Obligation (G.O.)
revenue bonds, and a 2015 Public Facilities Authority (PFA) G.O. Sewer Revenue Note. All utility
rates are reviewed annually and adjusted to cover operating, capital, and debt service
expenses. According to a survey by engineering firm AE2S, Monticello has some of the lowest
utility rates in Minnesota. However, the council is aware that the city needs to maintain its
competitive position in both property taxes and utility charges to attract economic
development.
Anticipated Borrowing this Fiscal Year
The City of Monticello does not anticipate issuing debt in 2025.
Impacts to Operations
The city’s percentage of levy used for debt service payments has decreased over the last ten
years from 27% in 2015 to 15% in 2025, with the portion of the levy used for pay-as-you-go
capital increasing from none to 17%. The city’s long-term financial plan includes construction of
a new public works facility beginning in 2027, which would be financed by a relatively
105Table of Contents
significant amount of debt. While not unprecedented, city council is aware of the fact that
issuing that level of debt would create pressure on other areas of the levy, including to other
capital projects and well as operations (i.e. maintaining existing assets and offering the current
level of services).
Bond Rating
The city’s G.O. bond rating was reviewed in October 2023. Moody’s upgraded the city’s prior
G.O. bond rating of A1 to Aa3, which can be described as “high grade”.
Legal Debt Limit
Most Minnesota cities may not incur debt more than three percent of the market value of
taxable property in the city. Excepted from this overall three percent limit are almost all debt
obligations for which some other source of revenue is pledged as security. The result is that,
with only a few exceptions, the only obligations subject to the debt limit are general obligation
(G.O.) bonds payable solely from ad valorem property taxes. The legal debt limit has nothing to
do with the practical debt limit of a city, which is the debt burden beyond which the
creditworthiness of the city is put into question. (See Minnesota Statutes, Section 475.53)
Moody's S&P Fitch
Aaa AAA AAA Prime
Aa1 AA+AA+
Aa2 AA AA
Aa3 AA-AA-
A1 A+A+
A2 A A
A3 A-A-
Baa1 BBB+BBB+
Baa2 BBB BBB
Baa3 BBB-BBB-
High grade
Upper medium
grade
Lower medium
grade
Market value (payable 2024)*2,702,176,000$
Debt limit (3% of market value)81,065,280$
Total net debt applicable to limit (5,560,000)$
Legal debt margin 75,505,280$
*Final Payable 2025 not yet available.
Legal Debt Margin Calculation for Fiscal Year 2025
106Table of Contents
G.O. Debt Service Levies: Most city debt issues are supported on some level by property taxes.
Annual debt service levies are as follows:
G.O. Debt Service Payments: Annual debt service payments are as follows:
G.O. Debt Outstanding as of 12/31: Projected balances of outstanding debt (excluding the
Sewer Fund’s PFA G.O. Revenue Note, which is not considered bonded debt) are as follows:
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
G.O. Debt Service Levies
2015B 2016A 2017A 2018A 2019A 2020A
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
G.O. Debt Service Payments
2013B 2015B 2016A 2017A 2018A 2019A 2020A
$-
$2
$4
$6
$8
$10
$12
$14
20
2
5
20
2
6
20
2
7
20
2
8
20
2
9
20
3
0
20
3
1
20
3
2
20
3
3
20
3
4
20
3
5
Mi
l
l
i
o
n
s
G.O. Debt Outstanding as of 12/31
2013B 2015B 2016A 2017A 2018A 2019A 2020A
107Table of Contents
STAFFING SUMMARY
Staffing, as measured by full-time equivalents, decreased in 2020 due to the COVID-19
pandemic and has been increasing each year since. Many employees perform across multiple
activities/divisions and funds. The budget reflects updates to the allocation of time spent in
various departments by all staff. The 2025 budget includes:
•Creation of an administrative support position for development services (Planning &
Zoning/Community Development, Building, and the Economic Development Authority),
which had previously shared an allocation of the clerk’s administrative support position
•Slight increase in assumed part-time hours
Actual Actual Actual Budget Change
2022 2023 2024 2025 2022-2025
General Fund
City Council 0.10 0.10 0.10 0.10 -
City Administration 3.60 2.90 2.75 3.00 (0.60)
City Clerk 1.85 1.50 2.10 1.50 (0.35)
Finance 3.85 3.75 3.65 3.65 (0.20)
Human Resources 1.00 1.00 1.00 1.25 0.25
Planning & Zoning 1.40 1.90 1.90 2.10 0.70
Fire & Rescue 4.90 3.90 3.95 3.75 (1.15)
Building Inspections 4.20 5.20 5.20 5.30 1.10
Public Works Administration 1.10 1.10 1.05 1.05 (0.05)
Engineering & Inspections 1.55 1.55 1.55 1.55 -
Streets & Alleys 3.90 4.10 4.10 4.10 0.20
Ice & Snow 2.30 2.45 2.45 2.55 0.25
Shop & Garage 1.80 1.85 1.35 1.40 (0.40)
Park Operations 9.40 9.20 9.55 9.40 -
Shade Tree 0.90 0.90 0.90 0.90 -
Total General Fund 41.85 41.40 41.60 41.60 (0.25)
Special Revenue Funds
Monticello Community Center 18.05 20.75 22.25 22.30 4.25
Total Special Revenue Funds 18.05 20.75 22.25 22.30 4.25
Enterprise Funds
Wa ter 3.60 3.80 3.80 3.90 0.30
Sewer 3.75 3.55 3.55 3.45 (0.30)
Stormwater 1.40 1.55 1.55 1.55 0.15
Liquor 10.37 10.26 10.49 10.46 0.09
Deputy Registrar 7.26 7.04 7.12 7.55 0.29
Total Enterprise Funds 26.38 26.20 26.51 26.91 0.53
Internal Service Funds
Facilities Maintenance 1.10 1.10 1.10 2.00 0.90
IT Services 1.00 1.00 1.00 1.00 -
Total Internal Service Funds 2.10 2.10 2.10 3.00 0.90
Discrete Component Units
Economic Development 1.50 1.60 1.60 2.00 0.50
Total Discrete Component Units 1.50 1.60 1.60 2.00 0.50
Total All Funds 89.88 92.05 94.06 95.81 5.93
NUMBER OF FULL-TIME EQUIVALENTS
108Table of Contents
General Fund
2025 Adopted Budget
GENERAL FUND - SUMMARY
FUND DESCRIPTION
One of five governmental fund types, the General Fund serves as the chief operating fund of
the city. The General Fund accounts for all financial resources not accounted for in another
fund and uses the modified accrual basis of accounting for budgeting and financial reporting
purposes. The adopted General Fund budget is a balanced budget, which means current
revenues and other sources equal expenditures and other uses.
BUDGET SUMMARY
GENERAL FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 7,457,695$ 8,052,082$ 8,640,000$ 8,659,412$ 8,985,000$ 4.0%
Franchise & Other Taxes 254,247 247,854 346,500 229,194 324,000 -6.5%
Licenses & Permits 613,014 930,901 487,000 924,651 482,000 -1.0%
Intergovernmental Revenues 609,105 1,224,989 1,057,000 783,515 825,000 -21.9%
Charges for Services 1,340,329 1,441,024 1,309,743 1,576,206 1,514,900 15.7%
Fines & Forfeits 36,808 52,413 51,600 65,940 78,500 52.1%
Special Assessments 418 156 100 - - -100.0%
Miscellaneous 807,619 1,264,224 865,057 1,408,267 971,600 12.3%
Contributed Capital - 1,650 - - - ---
TOTAL REVENUES 11,119,235$ 13,215,293$ 12,757,000$ 13,647,185$ 13,181,000$ 3.3%
GENERAL FUND 2022 2023 2024 2024 2025 %
EXPENDITURES BY DEPT ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
GENERAL GOVERNMENT
Mayor and Council 55,262$ 46,094$ 59,727$ 55,486$ 58,815$ -1.5%
City Administration 934,031 958,253 1,052,879 1,044,787 1,022,829 -2.9%
City Clerk 227,096 217,318 277,222 286,124 221,064 -20.3%
Finance 625,523 663,348 681,352 713,553 753,232 10.5%
Legal 24,524 36,802 30,000 38,742 35,000 16.7%
Human Resources 139,338 162,457 183,576 179,138 238,507 29.9%
Planning & Zoning 598,178 532,437 371,851 598,482 632,216 70.0%
City Hall 76,002 75,872 65,249 64,635 93,134 42.7%
TOTAL GENERAL GOVERNMENT 2,679,954$ 2,692,581$ 2,721,856$ 2,980,947$ 3,054,797$ 12.2%
PUBLIC SAFETY
Law Enforcement 1,633,774$ 1,872,417$ 2,485,193$ 2,496,558$ 2,487,000$ 0.1%
Fire & Rescue 546,373 508,194 467,138 438,659 512,719 9.8%
Fire Relief 146,181 164,446 145,000 183,116 165,000 13.8%
Building Inspections 583,073 618,254 681,154 674,189 711,807 4.5%
Emergency Management 6,935 6,952 22,000 11,173 12,000 -45.5%
Animal Control 59,148 74,648 62,346 61,187 65,618 5.2%
National Guard 14,399 19,068 19,500 18,754 19,500 0.0%
TOTAL PUBLIC SAFETY 2,989,883$ 3,263,979$ 3,882,331$ 3,883,636$ 3,973,644$ 2.4%
PUBLIC WORKS
Public Works Administration 140,020$ 150,092$ 169,738$ 157,709$ 179,057$ 5.5%
Engineering & Inspections 263,931 320,369 321,517 520,455 333,501 3.7%
Streets & Alleys 1,153,418 1,308,793 1,395,343 1,224,354 1,377,989 -1.2%
Ice & Snow 320,884 294,882 488,959 253,912 475,293 -2.8%
Shop & Garage 295,613 283,711 330,016 276,621 339,012 2.7%
Street Lighting 226,689 243,482 322,000 203,178 291,000 -9.6%
TOTAL PUBLIC WORKS 2,400,555$ 2,601,329$ 3,027,573$ 2,636,229$ 2,995,852$ -1.0%
109Table of Contents
The previous table summarizes General Fund expenditures by activities/divisions and
departments. The table below summarizes expenditures by classifications.
BUDGET COMMENTARY:
Revenues
For 2025, budgeted revenues are estimated to increase by 3.3%. The General Fund portion of
the tax levy is budgeted to increase by 4.0%, which is less than the total (city & HRA) levy
increase of 8.1% due to a 27.5% increase in the levy for capital. Property taxes account for 68%
of General Fund revenues. Franchise & Other Taxes decrease to delay the anticipated costs
GENERAL FUND 2022 2023 2024 2024 2025 %
EXPENDITURES BY DEPT ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
SANITATION
Refuse Collection 784,052$ 817,199$ 880,557$ 911,886$ 900,000$ 2.2%
TOTAL SANITATION 784,052$ 817,199$ 880,557$ 911,886$ 900,000$ 2.2%
RECREATION AND CULTURE
Senior Center 108,122$ 102,773$ 104,363$ 104,930$ 107,363$ 2.9%
Park Operations 1,235,095 1,500,932 1,576,051 1,505,360 1,643,054 4.3%
Park Ballfields 59,754 22,667 28,665 25,357 34,100 19.0%
Public Arts 146,282 154,267 174,903 154,517 149,128 -14.7%
Shade Tree 94,217 127,872 266,722 112,138 225,936 -15.3%
Library 48,401 41,867 87,979 99,051 91,126 3.6%
TOTAL RECREATION AND CULTURE 1,691,871$ 1,950,378$ 2,238,683$ 2,001,353$ 2,250,707$ 0.5%
TOTAL OPERATING TRANSFERS 154,900$ 753,950$ 6,000$ 1,205,114$ 6,000$ 0.0%
TOTAL EXPENDITURES 10,701,215$ 12,079,416$ 12,757,000$ 13,619,165$ 13,181,000$ 3.3%
GENERAL FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 7,457,695$ 8,052,082$ 8,640,000$ 8,659,412$ 8,985,000$ 4.0%
Franchise & Other Taxes 254,247 247,854 346,500 229,194 324,000 -6.5%
Licenses & Permits 613,014 930,901 487,000 924,651 482,000 -1.0%
Intergovernmental Revenues 609,105 1,224,989 1,057,000 783,515 825,000 -21.9%
Charges for Services 1,340,329 1,441,024 1,309,743 1,576,206 1,514,900 15.7%
Fines & Forfeits 36,808 52,413 51,600 65,940 78,500 52.1%
Special Assessments 418 156 100 - - -100.0%
Miscellaneous 807,619 1,264,224 865,057 1,408,267 971,600 12.3%
Contributed Capital - 1,650 - - - ---
TOTAL REVENUES 11,119,235$ 13,215,293$ 12,757,000$ 13,647,185$ 13,181,000$ 3.3%
EXPENDITURES
Personnel Services 3,739,048$ 3,969,843$ 4,299,928$ 4,238,124$ 4,542,664$ 5.6%
Supplies 817,641 798,806 994,649 768,751 931,650 -6.3%
Other Services & Charges 5,411,226 5,923,817 6,888,923 6,839,676 7,055,786 2.4%
Capital Outlay 578,400 633,000 567,500 567,500 644,900 13.6%
Operating Transfers Out 154,900 753,950 6,000 1,205,114 6,000 0.0%
TOTAL EXPENDITURES 10,701,215$ 12,079,416$ 12,757,000$ 13,619,165$ 13,181,000$ 3.3%
FUND BALANCE - JANUARY 1 6,624,781$ 7,042,801$ 8,178,678$ 8,178,678$ 8,206,698$
Excess (Deficiency) of
Revenues over Expenditures 418,020 1,135,877 - 28,020 -
FUND BALANCE - DECEMBER 31 7,042,801$ 8,178,678$ 8,178,678$ 8,206,698$ 8,206,698$
110Table of Contents
increase when the Downtown improvements project in complete. The decrease in
Intergovernmental Revenues reflects one-time state aid in 2024 from the State of Minnesota
for public safety and to combat Emerald Ash Borer infestation in city trees. The increase in
Charges for Services reflects higher residential garbage and recycling charges. Fines & forfeits
increase to better reflect recent trends. Miscellaneous Revenues are projected higher, but still
conservatively, to reflect projected earnings in the city’s investment portfolio including its
community solar garden contract.
Expenditures
Expenditures are budgeted to increase 3.3%. City Clerk department expenditures decreased
because elections are held in even years only. The Finance department budget increased with
the implementation of an accounts payable (AP) workflow. A classification and compensation
study in the Human Resources department contributed to that department’s increase. Planning
& Zoning expenditures increase to include a park dedication study. The City Hall budget
increased due to a study of the workspace layout and an increased allocation of the Facilities
Maintenance internal services fund’s budget.
The Fire & Rescue department increase reflects additional rental payments to the Central
Equipment internal service fund for a new All-Terrain Vehicle (ATV). The Fire Relief department
shows an increase in expenditures, which is offset by an increase in Fire State Aid within
intergovernmental revenues above.
Most Public Works departments reflect inflationary assumptions in current service levels. The
Street Lighting department decreased to reflect more recent trends; however, this balance is
expected to increase again in future budget years with the additional lighting in the Downtown.
Park Operations increased due to the additional landscaping and installation of benches in the
Downtown along with an increase in rental payments to the Central Equipment internal service
fund for new equipment. Public Arts and Shade Tree expenditures decreased due to a decrease
in grants funds to support special projects including art installations and Emerald Ash Borer
(EAB) response.
The 2025 personnel services budget includes a full step increase, where applicable, and a 3.5%
market rate wage increase. The supplies budget decreased to more accurately reflect recent
spending trends. Other Services & Charges remain fairly steady with a slight increase to address
inflationary assumptions. The capital outlay amount reflects Capital Equipment Fund purchases,
which are charged back through lease payments and increased due to purchases of new and
replacement equipment. The operating transfer out in 2022 is to build a healthy reserve in the
Facilities Maintenance internal service fund, the 2023 operating transfer included $750,000 to
the Capital Projects Fund to replenish some of the reserves used for the Downtown
Improvements project, and operating transfers out in 2024 include $500,000 to the Facilities
Maintenance Fund to rectify a deficit in that fund and $700,000 to the Capital Projects Fund to
provide funding for future capital costs. As in prior years, the $6,000 budgeted Operating
transfers out in 2025 is to the EDA Fund for board member stipends, which is adjusted to actual
cost at yearend.
111Table of Contents
MAYOR AND CITY COUNCIL (101-41110)
DEPARTMENT: General Government SUPERVISOR: City Clerk
ACTIVITY SCOPE:
The mayor and council provide elected representation to the community with control over
policy, goals, budget, administration, and operations. Members participate in various
committees and direct staff through the city administrator.
OBJECTIVES:
1.Adopt policies and ordinances consistent with the council’s positions on growth,
zoning, and financial strategies.
2.Operate the city with transparency which includes public input in decision making.
ISSUES:
1.Capitalize on the city’s uniqueness by communicating a comprehensive vision
statement and setting achievable goals.
2.Examine city facility needs to meet future city operations.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The council’s budget remains consistent with previous years. The mayor earns $700 per month
and each councilmember earns $600 per month. Other services and charges are mainly
comprised of rental charges for the meeting room at the Monticello Community Center.
Measurement 2022 2023 2024 2025
Regular Council meetings 23 23 23 23
Special meetings/workshops 21 18 20 20
Full-Time Equivalents 0.10 0.10 0.10 0.10
GENERAL FUND 2022 2023 2024 2024 2025 %
MAYOR & COUNCIL Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 41,739$ 34,476$ 42,277$ 42,622$ 43,985$ 4.0%
Supplies - - - - - ---
Other Services & Charges 13,523 11,618 17,450 12,864 14,830 -15.0%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 55,262$ 46,094$ 59,727$ 55,486$ 58,815$ -1.5%
112Table of Contents
CITY ADMINISTRATION (101-41310)
DEPARTMENT: General Government SUPERVISOR: City Administrator
ACTIVITY SCOPE:
City administration provides the overall direction of the city, as determined by the mayor and
council. The city administrator serves as the chief administrative officer, ensuring that laws,
ordinances, and resolutions are implemented and enforced. The administrator is also
responsible for managing the operations of all city departments and providing customer
service for general city hall activities, such as reception and meeting room management.
OBJECTIVES:
1.Assist City Council in setting policies and procedures.
2.Provide direction and leadership on major city projects and budget management;
oversee performance evaluation and long-range planning.
3.Provide friendly, knowledgeable customer service to the public during adequate
and consistent hours of business.
4.Communicate mission, vision, and values along with city services and events to
the public.
ISSUES:
1.Leading and focusing council on policy matters.
2.Long-range comprehensive planning, including for development and traffic.
3.Continuing to improve internal and external communication systems, including
management of Citizen Service Desk.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Newsletters published 2 2 2 2
Monthly enewletters sent 9 12 9 12
Utility inserts published*10 12 10 12
Park inserts published*2 ---
All other inserts published*5 ---
Information desk inquiries 127 107 141 140
*Individual inserts with utility bills were combined into one monthly newsletter
Full-Time Equivalents 3.60 2.90 2.75 3.00
GENERAL FUND 2022 2023 2024 2024 2025 %
CITY ADMINISTRATION Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 304,433$ 321,355$ 337,139$ 348,748$ 389,834$ 15.6%
Supplies 19,136 12,011 15,000 8,226 11,000 -26.7%
Other Services & Charges 610,462 624,887 700,740 687,813 621,995 -11.2%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 934,031$ 958,253$ 1,052,879$ 1,044,787$ 1,022,829$ -2.9%
113Table of Contents
BUDGET COMMENTARY:
The city administration activity is limited to expenditures for daily operations in providing
services and does not include upkeep of the city hall facility. The 2025 personnel services
budget includes a full step increase and a 3.5% market rate wage increase. Reallocating the
current Administrative Assistant position to support City Administration, City Clerk, and Human
Resources and hiring a new Administrative Assistant to support Planning & Zoning, Building,
and the Economic Development Authority is included in the 2025 budget. Other services and
charges include the city’s investments in solar farms, which is budgeted conservatively due to
the unknown production as each solar farm.
114Table of Contents
CITY CLERK (101-41410)
DEPARTMENT: General Government SUPERVISOR: City Clerk
ACTIVITY SCOPE:
The city clerk activity is responsible for administering elections, maintaining official records,
updating the city code, improving records management and data practices, and serving as the
data practices compliance officer and responsible authority.
OBJECTIVES:
1.Improve data storage practices and data request responses with digital storage
through Laserfiche.
2.Administer elections including upgrading election equipment and recruiting and
training judges.
ISSUES:
1.Manage storage space, including in Laserfiche, while organizing decades of files.
2.Maintain current, accurate information for all public sources.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Voters, number of 5,175 0 7,865 0
Registered voters 8,646 8,791 8,972 9,000
Polling places 4 4 4 4
Election judges 59 65 60 60
Ordinances amendments 26 25 21 25
Council resolutions 142 113 127 120
Council minutes approved 44 41 43 43
Data requests 27 51 54 50
Laserfiche folders *17,410 19,034 20,000
Laserfiche documents *142,280 173,559 200,000
Laserfiche pages *1,497,324 1,548,803 1,750,000
*Data not obtained during the year
Full-Time Equivalents 1.85 1.50 2.10 1.50
GENERAL FUND 2022 2023 2024 2024 2025 %
CITY CLERK Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 187,127$ 172,061$ 210,143$ 227,643$ 188,723$ -10.2%
Supplies 5,145 7,241 13,000 7,948 500 -96.2%
Other Services & Charges 34,824 38,016 54,079 50,533 31,841 -41.1%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 227,096$ 217,318$ 277,222$ 286,124$ 221,064$ -20.3%
115Table of Contents
BUDGET COMMENTARY:
Elections are held in even-numbered years causing decreased budgeted expenditures in 2025.
Additionally, 2024 included a Presidential Nominating Primary election in Minnesota. Off-year
election expenditures are for maintenance contracts on voting equipment. The 2025 personnel
services budget includes a full step increase and a 3.5% market rate wage increase. Reallocating
the current Administrative Assistant position to support City Administration, City Clerk, and
Human Resources and hiring a new Administrative Assistant to support Planning & Zoning,
Building, and the Economic Development Authority is included in the 2025 budget.
116Table of Contents
FINANCE (101-41520)
DEPARTMENT: General Government SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The Finance Department conducts the financial affairs of the city of Monticello in accordance
with the Government Accounting Standards Board (GASB) and Generally Accepted Accounting
Principles (GAAP). This includes protection of the assets of the city, the initiation of financial
plans, investment and debt management, review and implementation of internal controls, and
accounting for every financial transaction of the city including accounts payable, accounts
receivable, payroll, and general ledger accounting control. The preparation of the annual
audited financial report and annual budget document are also facilitated through finance. An
audit of city finances must be completed on an annual basis for the city to remain in compliance
with federal and state accounting practices.
OBJECTIVES:
1.Updating the long-term financial management plan annually.
2.Develop financial documents eligible for receipt of the Government Finance Officers
Association’s (GFOA) award programs.
3.Complete financial, payroll, and utility billing transactions to provide meaningful and
timely financial reports and information to council, commissions, and other city
departments.
4.Complete the annual financial audit with no audit findings and adjustments.
ISSUES:
1.Implement improved reporting to council, commissions, and departments.
2.Develop methods for simplifying data analysis for various stakeholders.
3.Work with other departments to find ways to reduce costs of city operations.
4.Cross-training of finance team members in core functions.
5.Comply with changing reporting requirements and auditing standards.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
GFOA Budget Awards 14 15 16 17
GFOA Certificates of
Achievement 14 15 16*17
GFOA Popular Annual
Financial Report Awards 8 9* 10*11
Bond Rating A1 Aa3 Aa3 Aa3
Audit findings 0 0 0 0
PY Audit Opinion Unmodified Unmodified Unmodified Unmodified
*Not yet available. Value is an estimate.
117Table of Contents
MEASURABLE WORKLOAD DATA (CONTINUED):
BUDGET:
BUDGET COMMENTARY:
The Finance budget includes funds to handle the financial transactions of the city, in an efficient
manner, while maintaining the highest level of internal controls and segregation of duties. The
2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. The budgeted increase in Other Services & Charges reflects contract time to
implement an Accounts Payable (AP) workflow.
Measurement 2022 2023 2024 2025
Work Load:
AP checks, number of 1,568 1,457 1,521 1,500
AP ACHs, number of 1,462 1,545 1,672 1,750
Invoices processed 5,106 5,085 5,307 5,400
1099's 77 70 68 70
Paychecks issued 4,569 4,691 4,950 5,000
W-2s 255 322 359 340
Utility bills generated 54,898 55,532 56,408 57,000
Non-utility charges billed 262 276 286 300
Cash receipts entered 38,091 39,646 38,577 39,000
Journal entries 2,484 2,483 2,736* 2,750
New residential properties 95 35 44 50
New commercial properties 8 5 7 5
Tax exempt parcels 357 358 356 360
Taxable parcels assessed 4,821 4,916 4,970 5,000
*Not yet available. Value is an estimate.
Full-Time Equivalents 3.85 3.75 3.65 3.65
GENERAL FUND 2022 2023 2024 2024 2025 %
FINANCE Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 408,605$ 430,292$ 445,505$ 464,092$ 474,878$ 6.6%
Supplies 1,701 2,183 2,300 1,364 2,100 -8.7%
Other Services & Charges 215,217 230,873 233,547 248,097 276,254 18.3%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 625,523$ 663,348$ 681,352$ 713,553$ 753,232$ 10.5%
118Table of Contents
LEGAL (101-41610)
DEPARTMENT: General Government SUPERVISOR: City Administrator
ACTIVITY SCOPE:
Private legal firms provide all the city’s legal services. Activities include issuance of legal
opinions; preparation and/or review of ordinances, resolutions, contracts, and agreements; and
the conduct of civil litigation. Additional legal expenditures, such as publications, fees, and
other costs are accounted for in the benefitting unit.
OBJECTIVES:
1.Ensure compliance with applicable state statutes and federal regulations.
2.Minimize risk to the city by consulting with expert legal counsel.
ISSUES:
1.Potentially rising costs associated with the need for existing and new legal services.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The city continues to realize savings from not having full-time counsel. Certain legal services
provided to specific departments, such as to Building for code enforcement, are charged to the
benefitting budget unit while those performed related to planning and development projects
are passed through to the applicant.
Measurement 2022 2023 2024 2025
Billed hours:
Administration 232.4 296.8 353.0 325.0
Code enforcement 23.4 5.9 0.0 5.0
City Initiatives & Acquisitions 98.4 86.9 0.8 25.0
All other, including development 86.1 35.9 96.5 70.0
Total 440.3 425.5 450.3 425.0
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
LEGAL Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies - - - - - ---
Other Services & Charges 24,524 36,802 30,000 38,742 35,000 16.7%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 24,524$ 36,802$ 30,000$ 38,742$ 35,000$ 16.7%
119Table of Contents
HUMAN RESOURCES (101-41800)
DEPARTMENT: General Government SUPERVISOR: City Administrator
ACTIVITY SCOPE:
Human Resources activities support the primary mission of the city through the effective
recruitment, selection, development, training, and assessment of appropriate human resource
needs. Employee benefits and compensation administration, implementation of and
compliance with Federal and State employment laws, labor negotiations, processing of
employee grievances, and development of personnel policies are human resource functions.
OBJECTIVES:
1.Provide recruiting, interviewing, and other personnel services for all city departments.
2.Administer classification and compensation system for all employees in compliance
with pay equity.
3.Plan and coordinate in-house training programs for city staff.
4.Administer city benefit plans.
ISSUES:
1.Update personnel policies to accommodate changing employment law.
2.Communicate benefit changes to employees.
3.Develop and implement city drug and alcohol testing program.
4.Negotiate union contracts for public works employees.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Full-time positions 60 63 63 64
Part-time positions 133 146 165 165
Full-time positions filled 11 9 16 10
Other positions filled 93 73 75 75
Terminations processed 69 60 74 65
Job Postings 30 37 38 35
Application count - all city 511 638 725 700
Avg. number of employees 186 196 228 200
Full-Time Equivalents 1.00 1.00 1.00 1.25
GENERAL FUND 2022 2023 2024 2024 2025 %
HUMAN RESOURCES Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 113,329$ 125,959$ 134,170$ 128,825$ 163,180$ 21.6%
Supplies 1,384 482 1,500 1,038 1,050 -30.0%
Other Services & Charges 24,625 36,016 47,906 49,275 74,277 55.0%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 139,338$ 162,457$ 183,576$ 179,138$ 238,507$ 29.9%
120Table of Contents
BUDGET COMMENTARY:
The 2025 budget reflects estimated costs for setting up training, providing city staff with benefit
and compensation information, and other expenses based on experience. The 2025 personnel
services budget includes a full step increase and a 3.5% market rate wage increase. Other
Services & Charges increase due to completion of a classification and compensation study and
additional investments in training.
121Table of Contents
PLANNING, ZONING & COMMUNITY DEVELOPMENT (101-41910)
DEPARTMENT: General Government SUPERVISOR: Community Development Director
ACTIVITY SCOPE:
The Planning & Zoning and Community Development Department is responsible for long-range
and current planning efforts for Monticello. The department is responsible for regulating
development and use standards as outlined in the zoning and subdivision ordinance; these
standards are aimed at protecting and promoting public health, safety, and welfare. The
department oversees coordination with regional planning and service providers including
Monticello Township Board, Monticello Orderly Annexation Board, Wright County Planning &
Zoning, Sherburne County Planning & Zoning and regional transit entities. The department also
provides residents, business owners, and developers with current, easily accessible information
about Monticello's planning process and projects happening in their community.
OBJECTIVES:
1.Implementation of Comprehensive Plan objectives, including subdivision ordinance
amendments consistent with the Implementation Chart.
2.Support for downtown redevelopment and revitalization.
3.Involvement in regional planning and its impact on land use and growth objectives.
4.Training on and utilization of the city's GIS.
5.Improvements to the city's development and planning process.
6.Increased support for neighborhood organizations and involvement.
ISSUES:
1.Zoning compliance and enforcement.
2.Records management and integration for planning and zoning.
3.Land use and transportation relationships.
4.Emerging technology and land use impacts.
122Table of Contents
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
Grants awarded 0 0 0 0
Administrative applications (total)8 9 6 7
Processed within 5 working days 5 6 6 7
Site Plan reviews processed
within 14 working days 2 0 1 1
Change in Use forms 6 11 16 18
reviewed within 5 working days 6 9 14 15
Zoning Confirmation/Request Ltrs 10 13 10 11
processed within 10 working days 10 12 10 11
Sign Permit zoning reviews 23 21 20 22
processed within 5 working days 10 18 14 15
Land Use applications processed 95 84 70 77
within 60 working days 87 75 67 74
Reconciliations processed 31 19 16 18
Annexation petitions 0 1 1 2
Work Load:
Planning Applications:
Variances 0 0 1 1
CUPs 8 12 10 11
PUD/Amendments to PUD 15 11 19 21
Interim Use permits 2 0 1 0
Comp Plan amendments 1 4 0 2
Map amendments 6 4 6 7
Non-city zoning text amendments 1 4 0 0
City zoning text amendments 0 0 0 2
Plats/adminstrative subdivisions 16 7 10 8
Administrative permits 8 9 6 7
Site plan reviews 2 1 1 1
Appeals 0 0 0 0
Vacations 7 1 1 1
Sign permit application review 23 21 20 22
Change in Use review 6 10 16 18
Total applications 95 84 91 101
Planning reconciliations 31 19 16 30
Planning Commission meetings 29 23 26 26
BCOL Advisory Meetings 1 3 0 0
PARC Meetings (Report Prep)4 1 2 2
EDA Meetings 33 26 32 26
IEDC Meetings 11 11 7 7
Full-Time Equivalents 1.40 1.90 1.90 2.10
123Table of Contents
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. Reallocating the current Administrative Assistant position to support City
Administration, City Clerk, and Human Resources and hiring a new Administrative Assistant to
support Planning & Zoning, Building, and the Economic Development Authority is included in
the 2025 budget. The receipt of a Community Energy Transitions (CET) grant from the State of
Minnesota’s Department of Employment and Economic Development (DEED) in 2022 for
planning studies led to expenditures well over budget. The 2025 Other Services & Charges
budget includes $50,000 for a park dedication study, and the budget was also increased to
reflect actual costs (which are offset by escrow deposits from developers) for plan review
activity.
GENERAL FUND 2022 2023 2024 2024 2025 %
PLANNING & ZONING Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 217,645$ 237,906$ 249,647$ 251,815$ 277,352$ 11.1%
Supplies 745 60 300 317 300 0.0%
Other Services & Charges 379,788 294,471 121,904 346,350 354,564 190.9%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 598,178$ 532,437$ 371,851$ 598,482$ 632,216$ 70.0%
124Table of Contents
CITY HALL (101-41940)
DEPARTMENT: General Government SUPERVISOR: City Administrator
ACTIVITY SCOPE:
The activity for this department consists of maintenance and upkeep for the city hall suite
within the Monticello Community Center.
OBJECTIVES:
1.Provide adequate and consistent hours of operations throughout the year.
2.Maintain a clean, inviting facility to house meetings and staff.
ISSUES:
1.Depreciation of facility, timely maintenance and rising utility costs.
2.Examining layout to accommodate new uses and trends.
3.Building and office security.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Personnel services are not budgeted in the City Hall activity, however, the actual time of staff
from other departments is allocated to this activity. The Supplies purchased in 2024 include a
new conference table and chairs in the Academy conference room. The increase in Other
Services & Charges includes a study to optimize the space in City Hall and reflects a higher
contribution to the Facilities Maintenance internal service fund for maintenance of the facility.
Measurement 2022 2023 2024 2025
Utilities $27,337 $26,988 $27,033 $27,650
Repairs & Maintenance $11,982 $18,481 $3,357 $20,650
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
CITY HALL Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 4,824$ 3,622$ -$ 3,772$ -$ ---
Supplies 1,694 - 8,500 10,681 - -100.0%
Other Services & Charges 69,484 72,250 56,749 50,182 93,134 64.1%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 76,002$ 75,872$ 65,249$ 64,635$ 93,134$ 42.7%
125Table of Contents
LAW ENFORCEMENT (101-42100)
DEPARTMENT: Public Safety SUPERVISOR: City Administrator
ACTIVITY SCOPE:
All law enforcement services are contracted with the Wright County Sheriff's Department. The
Sheriff’s Department uses space at the new Fire Station for staff break time and other officing
uses. The Sheriff sets the hourly rate and the city contracts for the number of hours, which
were increased from 52 hours per day to 60 hours per day effective May 1, 2023.
OBJECTIVES:
1.Protect life and property and improve the quality of community life.
2.Continue contracting for law enforcement services from Wright County.
3.Provide coverage for commercial and residential growth.
ISSUES:
1.Concerns from residents regarding the perception the city does not have its own
police force.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
Arrests 230 241 283 250
Arrests to crimes ratio 0.34 0.32 0.46 0.37
Efficiency:
Hours contracted 18,980 20,940 21,960 21,900
Calls per hour contracted 0.50 0.52 0.47 0.48
Costs per workload unit $168.06 $168.40 $222.40 $228.34
Work Load:
Life quality calls, number of 4,774 4,488 4,135 4,500
Traffic calls, number of 3,683 5,187 5,238 5,000
Vehicle crashes, number of 371 370 385 375
Crimes, number of 681 742 610 675
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
LAW ENFORCEMENT Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies - - - - - ---
Other Services & Charges 1,633,774 1,872,417 2,485,193 2,496,558 2,487,000 0.1%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 1,633,774$ 1,872,417$ 2,485,193$ 2,496,558$ 2,487,000$ 0.1%
126Table of Contents
BUDGET COMMENTARY:
Law enforcement services are contracted in five-hour-per-day increments from the Wright
County Sheriff’s Office (WCSO) Department. Prior to 2023, the WCSO contract was handled in
four-hour-per-day increments. Past hourly rates and contracted hours are presented in the
schedule below:
The city’s contracted daily hours increased from 48 to 52 in July 2018. Daily hours contracted
increased again in May 2023 from 52 to 60. The leap years of 2016, 2020, and 2024 include one
more day of coverage (48 hours in 2016, 52 hours in 2020, and 60 hours in 2024).
Hourly Daily Hours Annual Hours
Year Rate Contracted Contracted
2016 $67.00 48 17,568
2017 $69.50 48 17,520
2018 $72.00 48/52 18,256
2019 $74.50 52 18,980
2020 $78.25 52 19,032
2021 $81.75 52 18,980
2022 $84.20 52 18,980
2023 $86.75 52/60 20,940
2024 $105.00 60 21,960
2025 $110.00 60 21,900
127Table of Contents
FIRE & RESCUE (101-42200)
DEPARTMENT: Public Safety SUPERVISOR: City Administrator
ACTIVITY SCOPE:
The Fire Department’s paid-on-call volunteers respond to fire, rescue, hazardous materials,
medical, and accident calls within the city and the surrounding townships.
OBJECTIVES:
1.Provide quick response to emergency situations in the community.
ISSUES:
1.Training, retention, and safety of paid-on-call personnel.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
Respondent-hours on fire calls:
City 3,443 3,500 3,291 3,350
Monticello Township 1,138 1,277 1,119 1,125
Silver Creek Township 562 417 660 525
Mutual Aid 130 396 168 175
Drills & Maintenance 2,396 2,462 2,272 2,325
Total 7,669 8,052 7,510 7,500
Work Load:
Number of fire calls:
City 273 266 277 275
Monticello Township 74 82 64 70
Silver Creek Township 30 24 39 35
Mutual Aid 7 17 15 12
Drills & Maintenance 56 61 60 60
Total 440 450 455 452
Efficiency:
Average respondent-hours per call
City 13 13 12 12
Monticello Township 15 16 17 16
Silver Creek Township 19 17 17 15
Mutual Aid 19 23 11 15
Drills & Maintenance 43 40 38 39
Total Average 17 18 17 17
Full-Time Equivalents 4.90 3.90 3.50 3.75
Firefighters, number of 30 30 30 30
128Table of Contents
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a 3.5% market rate wage increase. Other Services
& Charges increase due to an increased allocation of costs to the Facilities Maintenance internal
service fund. Capital outlay reflects lease payments to the Central Equipment Fund for various
pieces of equipment; the fire tender truck purchased in 2014 is considered fully paid off which
decreased the costs in 2024. However, a replacement ATV contributed to the budgeted
increase in 2025.
GENERAL FUND 2022 2023 2024 2024 2025 %
FIRE & RESCUE Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 208,446$ 171,370$ 156,261$ 166,347$ 167,287$ 7.1%
Supplies 59,604 72,124 81,500 74,589 81,900 0.5%
Other Services & Charges 215,623 202,000 207,977 176,323 229,132 10.2%
Capital Outlay 62,700 62,700 21,400 21,400 34,400 60.7%
TOTAL EXPENDITURES 546,373$ 508,194$ 467,138$ 438,659$ 512,719$ 9.8%
129Table of Contents
FIRE RELIEF (101-42202)
DEPARTMENT: Public Safety SUPERVISOR: Finance Director
ACTIVITY SCOPE:
Providing a retirement benefit to paid-on-call volunteers, the fire relief activity is specifically
designed to track contributions to the Monticello Fire Relief Association.
OBJECTIVES:
1.Provide pension funds for the Monticello Fire Relief Association.
ISSUES:
1.Balancing pension assets with pension liabilities.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The fire relief budget acts as a conduit for distribution of state fire aid to the pension fund for
volunteer firefighters. State aid revenue equals the contribution to the relief association, and it
is conservatively estimated for budgetary purposes.
Measurement 2022 2023 2024 2025
Pension assets 1,427,149$ 1,550,728$ 1,768,757$ 1,900,000$
Pension liabilities 1,607,907$ 1,359,149$ 1,237,719$ 1,400,000$
Assets-liabilities ratio 0.89 1.14 1.43 1.36
Pension per service year $5,100 $5,300 $5,300 $5,300
Fire state aid $146,181 $161,446 $183,116 $190,000
State aid per firefighter $4,873 $5,382 $6,104 $6,333
Active firefighters 30 30 30 30
Deferred firefighters 6 4 3 3
*2024 assets and liabilities estimated per Form SC-24
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
FIRE RELIEF Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies - - - - - ---
Other Services & Charges 146,181 164,446 145,000 183,116 165,000 13.8%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 146,181$ 164,446$ 145,000$ 183,116$ 165,000$ 13.8%
130Table of Contents
BUILDING INSPECTIONS (101-42400)
DEPARTMENT: Public Safety SUPERVISOR: Community Development Director
ACTIVITY SCOPE:
The Building Department inspects all new and remodeled construction within the city by a state
certified building inspector. The department manages all building permits and oversees the
enforcement of all public nuisance and ordinance issues. Beginning in 2022, the department
provides fire inspection services, which used to be handled by the Fire & Rescue department.
OBJECTIVES:
1.Implementation and enforcement of the building codes.
2.Implementation of the rental licensing program.
3.Management of zoning ordinance and sign ordinance updates.
4.Implement yearly contractor, realtor, and rental property owner workshops.
5.Improve city's public perception image through education and public relations.
ISSUES:
1.Managing and prioritizing department workloads.
2.Meeting the residential and commercial growth challenges as a regional center.
3.Enforcing biennial rental license inspections.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
Value of permits issued 41,989,848$ 76,068,705$ 33,541,010$ 50,000,000$
Value of permits per FTE 9,997,583$ 14,628,597$ 6,450,194$ 9,433,962$
Efficiency:
Rental inspections per FTE 151 292 138 302
Permits per FTE 216 216 541 189
Work Load:
Building permits issued 909 1122 2815 1000
Nuisance notices issued 142 136 91 115
Rental inspections 636 1,519 717 1,600
Rental units 1,895 1,932 2,046 2,050
Full-Time Equivalents 4.20 5.20 5.20 5.30
131Table of Contents
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. The fire marshal position, previously reported in the fire & rescue department, was
eliminated in 2022 and the building department absorbed the fire inspection responsibilities.
An increase in development led to the hiring of an additional building inspector in 2023.
Reallocating the current Administrative Assistant position to support City Administration, City
Clerk, and Human Resources and hiring a new Administrative Assistant to support Planning &
Zoning, Building, and the Economic Development Authority is included in the 2025 budget.
Supplies return to previous levels after the enforcement of lock boxes throughout the city in
2022. Other services & charges reflect higher costs for information technology (IT) support and
credit card processing fees. Capital outlay includes costs for new or replacement vehicles for
inspectors.
GENERAL FUND 2022 2023 2024 2024 2025 %
BUILDING INSPECTIONS Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 466,450$ 546,500$ 624,428$ 620,634$ 651,649$ 4.4%
Supplies 12,973 6,208 7,000 7,964 7,000 0.0%
Other Services & Charges 33,650 30,546 49,726 45,591 53,158 6.9%
Capital Outlay 70,000 35,000 - - - ---
TOTAL EXPENDITURES 583,073$ 618,254$ 681,154$ 674,189$ 711,807$ 4.5%
132Table of Contents
EMERGENCY MANAGEMENT (101-42500)
DEPARTMENT: Public Safety SUPERVISOR: Emergency Management Coordinator/Fire Chief
ACTIVITY SCOPE:
The emergency management department provides constant defense coverage for all weather
and power plant related emergency situations within the city.
OBJECTIVES:
1.Complete city hall, community center, and National Guard emergency preparedness.
2.Develop National Incident Management System (NIMS) training for all city
departments.
ISSUES:
1.Preparedness - little or no warning when an emergency occurs.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 budget was reduced based on recent trends in spending state operating grant funds
received through Wright County. Much of this activity's responsibilities had been transferred to
Wright County. However, the city is an active participant of the emergency management team.
The Fire Chief is the Emergency Operations Manager for the city.
Measurement 2022 2023 2024 2025
Data under development
GENERAL FUND 2022 2023 2024 2024 2025 %
EMERGENCY MANAGEMENT Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 2,124$ 54$ 3,225$ -$ 3,132$ -2.9%
Supplies 3,906 - 6,500 4,376 2,000 -69.2%
Other Services & Charges 905 6,898 12,275 6,797 6,868 -44.0%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 6,935$ 6,952$ 22,000$ 11,173$ 12,000$ -45.5%
133Table of Contents
ANIMAL CONTROL (101-42700)
DEPARTMENT: Public Safety SUPERVISOR: City Clerk
ACTIVITY SCOPE:
The city contracts with a private individual for animal control services. The city owns and
maintains the animal control facility. The city also contracts with nearby communities, allowing
them to use the city’s services and facility.
OBJECTIVES:
1.Address animal control issues in a timely and courteous manner.
2.Promote simple and efficient billing procedures for animal control issues.
ISSUES:
1.Provide quick response to residents on animal control concerns.
2.Allocation of service costs based on usage by customers (townships and cities).
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The professional service contract to handle all animal control issues is the largest budgeted
item. The remaining budget items are for supplies and other service charges related to
operating the animal control facility. Rate increases cause the budgeted increase for offsetting
animal control fee revenue.
Measurement 2022 2023 2024 2025
Stray animal reports 501 491 504 500
Barking dog reports 241 187 201 200
Lost/found reports 2,117 1,819 2,514 2,200
Feral cat trapping 313 151 198 200
Unsanitary condition reports 157 141 101 125
Abuse/neglect reports 206 171 168 175
Impounds 524 469 533 500
Dog bite reports 51 51 71 60
Animal control fees $59,860 $50,598 $53,969 $53,000
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
ANIMAL CONTROL Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies 2,172 - 1,250 957 1,250 0.0%
Other Services & Charges 56,976 74,648 61,096 60,230 64,368 5.4%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 59,148$ 74,648$ 62,346$ 61,187$ 65,618$ 5.2%
134Table of Contents
NATIONAL GUARD (101-42800)
DEPARTMENT: Public Safety SUPERVISOR: Facilities Maintenance Manager
ACTIVITY SCOPE:
The National Guard (NG) facility is housed in the Monticello Community Center complex. The
city will maintain the facility in perpetuity in return for a one-time payment in 1998 that helped
fund construction of the community center. However, the NG will contribute to capital
improvements made to the building. The Guard provides no direct services to the city.
OBJECTIVES:
1.Maintain a clean, modern facility for use by the National Guard.
ISSUES:
1.None.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The National Guard (NG) operates a security division within the Monticello Community Center
complex. The city maintains the Guard’s site within the complex. The budget for this activity is
relatively static, consisting only of building rent and utilities. However, the budget was
increased in 2023 to reflect higher gas and electric rates and to properly reflect the time the NG
uses certain amenities of the facility for their training purposes.
Measurement 2022 2023 2024 2025
Not Applicable
GENERAL FUND 2022 2023 2024 2024 2025 %
NATIONAL GUARD Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies - - - - - ---
Other Services & Charges 14,399 19,068 19,500 18,754 19,500 0.0%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 14,399$ 19,068$ 19,500$ 18,754$ 19,500$ 0.0%
135Table of Contents
PUBLIC WORKS ADMINISTRATION (101-43110)
DEPARTMENT: Public Works SUPERVISOR: Public Works Director
ACTIVITY SCOPE:
The public works (PW) administration activity oversees the daily operations of the engineering,
street, water, sewer, and stormwater activities. PW administration also manages all large city
projects and implements all changes to PW operations and policy.
OBJECTIVES:
1.Implementation of the bio-solids management system, major street lighting project
plan, and wellhead protection plan.
2.Manage the development of a new public works facility, expansion of the wastewater
treatment plant, and construction of a water treatment plant.
3.Determine location for future wells, utilizing information gathered from various
sources including grants.
ISSUES:
1.Balance the public works department needs with available funds.
2.Manage city's water and wastewater treatment systems and SCADA system.
3.Implement the capital improvement plan for city infrastructure.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. The public works director/engineering position is spread over four budgets: General
Fund (split between PW Administration and Engineering & Inspections) - 60%, Sewer Fund –
20%, Water Fund – 15%, and Stormwater Fund – 5%. Other services & charges increased in
2023 for reallocated I-94 Coalition dues (previously recorded in Engineering & Inspections).
Measurement 2022 2023 2024 2025
Budget units 15 15 15 15
Employees supervised - FT 16 17 18 20
Full-Time Equivalents 1.10 1.10 1.05 1.05
GENERAL FUND 2022 2023 2024 2024 2025 %
PW - ADMINISTRATION Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 113,560$ 113,391$ 119,256$ 127,093$ 137,787$ 15.5%
Supplies 4,692 5,088 7,000 4,920 5,000 -28.6%
Other Services & Charges 21,768 31,613 43,482 25,696 36,270 -16.6%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 140,020$ 150,092$ 169,738$ 157,709$ 179,057$ 5.5%
136Table of Contents
ENGINEERING & INSPECTIONS (101-43115)
DEPARTMENT: Public Works SUPERVISOR: City Engineer
ACTIVITY SCOPE:
The engineering department handles the provision, development, and management of the
city's streets, pathways, public utilities systems, geographic information system (GIS), Storm
Water Pollution Prevention Program (SWPPP), improvement projects, and miscellaneous
mapping. Engineering also issues driveway, grading, and right-of-way permits. Furthermore,
personnel are responsible for managing records retention for plats, city maps, infrastructure
data bases, soil borings, development plans, and as-builts. Using various computer software
programs including ArcGIS and CarteGraph, staff provides design and mapping assistance.
OBJECTIVES:
1.Complete cost estimates (capital infrastructure planning and budgeting) and design
for all improvement projects.
2. Improve GIS system and utilization of CarteGraph software for the in-house Pavement
Management and Sign Program.
3.Assist with design, implementation and public education drainage issue solutions.
4.Complete inspections, documentation, and administration of city’s SWPPP.
5.Operate a one-stop shop for city driveway, grading, and right-of-way permits.
6.Collaborate with the State and County to improve the city’s transportation system.
7.Work with other departments on public improvements and review development plans
and agreements.
8.Apply for grants and track funding for improvement projects.
ISSUES:
1.Workload is unevenly distributed throughout the year.
2.Increasing restrictions by Minnesota Pollution Control Agency (MPCA) for storm water
runoff.
3.Lack of public knowledge regarding purposes and practices associated with
conservation and drainage easements and storm water ponds.
4.Increasing phosphorus restrictions by MPCA for wastewater effluent.
5.Volatility in available federal and state funding for transportation improvements.
137Table of Contents
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. The engineering activity predominantly consists of engineering and other professional
service fees including contract time for regional traffic studies. These expenditures include both
reimbursable and non-reimbursable expenditures. The 2025 budget decreases supplies costs to
more accurately reflect recent trends. Capital outlay consists of rental payments to the Central
Equipment Fund for one of the department vehicles.
Measurement 2022 2023 2024 2025
Improvement projects 17 17 15 15
Driveway permits issued 15 18 16 15
Right-of-way permits issued 59 80 54 75
Development applications 7 6 14 8
Grading permits issued 5 2 3 5
NPDES Inspections 394 434 365 390
Outfall Inspections 1 17 0 5
Stormwater Inspections 50 52 53 52
Pond Inspections 31 35 7 30
Inspection revenue $45,864 $86,097 $48,355 $80,000
Inspection hours billed 385.5 652.0 375.0 625.0
Full-Time Equivalents 1.55 1.55 1.55 1.55
GENERAL FUND 2022 2023 2024 2024 2025 %
PW - ENGINEERING & INSPECTIONS Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 188,967$ 211,755$ 217,452$ 221,693$ 233,353$ 7.3%
Supplies 9,597 3,301 18,000 4,062 8,000 -55.6%
Other Services & Charges 59,367 99,313 80,065 288,700 86,148 7.6%
Capital Outlay 6,000 6,000 6,000 6,000 6,000 0.0%
TOTAL EXPENDITURES 263,931$ 320,369$ 321,517$ 520,455$ 333,501$ 3.7%
138Table of Contents
STREETS & ALLEYS (101-43120)
DEPARTMENT: Public Works SUPERVISOR: Street Superintendent
ACTIVITY SCOPE:
The main responsibility of the streets and alleys activity is to perform the necessary tasks to
reduce the depreciation of the city streets and uphold desirable standards of appearance,
serviceability, and safety. This includes upkeep such as repair of roadway surface areas,
medians, sidewalks, boulevards, alleys, catch basins, and storm sewers.
OBJECTIVES:
1.Street reconstruction of older road surfaces prioritized by evaluating road wear.
2.Utilize street chip seal coating projects and crack sealing program to get the most out
of the city’s street system before replacement is needed.
3.Maintain and update equipment and vehicles.
ISSUES:
1.Educating the public on what the boulevards are to be used for and on the value of
good maintenance programs for our infrastructure.
2.Increased costs of fuel and street products.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. A new streets operator began in May 2023. This budget unit also shares staff with the
Ice & Snow activity, which can create significant fluctuations from year to year. Increases in
capital outlay reflects purchases in the Central Equipment Fund for equipment leased to the
streets department. Other services & charges continues decrease due to a fog seal
maintenance project included in the 2024 budget.
Measurement 2022 2023 2024 2025
Pounds of crack seal er 0 0 0 10,000
Miles of streets 81.0 81.0 81.0 81.0
Tons of black top patching 664 1,053 699 850
Full-Time Equivalents 3.90 4.10 4.10 4.10
GENERAL FUND 2022 2023 2024 2024 2025 %
PW - STREETS & ALLEYS Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 352,830$ 430,120$ 438,635$ 484,746$ 450,918$ 2.8%
Supplies 321,312 253,663 313,000 178,631 299,000 -4.5%
Other Services & Charges 181,376 243,410 249,208 166,477 203,471 -18.4%
Capital Outlay 297,900 381,600 394,500 394,500 424,600 7.6%
TOTAL EXPENDITURES 1,153,418$ 1,308,793$ 1,395,343$ 1,224,354$ 1,377,989$ -1.2%
139Table of Contents
ICE & SNOW REMOVAL (101-43125)
DEPARTMENT: Public Works SUPERVISOR: Street Superintendent
ACTIVITY SCOPE:
The city's ice and snow removal activity is responsible for the control of ice and snow on city
streets, sidewalks, and city-owned public parking lots. The activity provides control in a safe and
cost-effective manner while keeping in mind safety, personnel, and environmental concerns.
OBJECTIVES:
1. Maintain and update equipment and vehicles in a timely manner.
ISSUES:
1. Staffing and budgeting for unpredictable circumstances.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase. Weather variability greatly impacts budget-to-actual comparisons.
Measurement 2022 2023 2024 2025
Inches of snow 48 82 36 50
Plowing events 28 37 22 25
Tons of salt used 600 620 277 500
Tons of sand used 24 29 35 32
Full-Time Equivalents 2.30 2.45 2.45 2.55
GENERAL FUND 2022 2023 2024 2024 2025 %
PW - ICE & SNOW Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 161,454$ 131,163$ 277,917$ 95,777$ 290,389$ 4.5%
Supplies 132,187 146,402 175,000 143,303 159,000 -9.1%
Other Services & Charges 27,243 17,317 36,042 14,832 25,904 -28.1%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 320,884$ 294,882$ 488,959$ 253,912$ 475,293$ -2.8%
140Table of Contents
SHOP & GARAGE (101-43127)
DEPARTMENT: Public Works SUPERVISOR: Street Superintendent
ACTIVITY SCOPE:
Shop & Garage maintains all city vehicles and equipment for the streets, ice & snow, water, and
sewer activities in a safe and efficient manner. The department also assists with equipment
maintenance of other city departments as needed.
OBJECTIVES:
1.Maintain equipment and vehicles to maximize efficiencies and safety.
ISSUES:
1.Aging equipment.
2.Increased safety regulation for equipment and vehicles.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Service orders 85 75 79 75
Service order hours 114 174.5 145 150
Hours per service order 1.3 2.3 1.8 2.0
Total service order costs $14,367 $7,310 $15,332 $15,000
Service cost per order $169.02 $97.47 $194.08 $200.00
Repair orders 28 28 12 15
Repair hours 127 162 91 100
Hours per repair order 4.5 5.8 7.6 6.7
Total repair order costs $16,513 $11,941 $24,998 $12,000
Repair costs per order $589.75 $426.46 $2,083.17 $800.00
DOT inspections*-- --7 10
Inspection hours*-- --18 25
Hours per inspection*-- --2.6 2.5
Total inspection costs*-- --$1,170 $2,500
Inspection costs per order*-- --$167.14 $250.00
*Data was included with repairs through 2023 and was separated out in 2024.
Full-Time Equivalents 1.80 1.85 1.35 1.40
GENERAL FUND 2022 2023 2024 2024 2025 %
PW - SHOP & GARAGE Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 160,498$ 152,844$ 141,277$ 147,860$ 147,330$ 4.3%
Supplies 47,328 53,862 55,500 55,747 60,500 9.0%
Other Services & Charges 87,787 77,005 133,239 73,014 131,182 -1.5%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 295,613$ 283,711$ 330,016$ 276,621$ 339,012$ 2.7%
141Table of Contents
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
increase; costs decreased in 2024 due to the retirement of the part-time custodian which is
now contracted out. The increase in Other services & charges is due to increases rate for
utilities and a structural analysis of the site’s monopole.
142Table of Contents
STREET LIGHTING (101-43160)
DEPARTMENT: Public Works SUPERVISOR: Street Superintendent
ACTIVITY SCOPE:
The street Iighting activity maintains new and existing street lighting within the city. This
includes maintaining installed bulbs and fixtures, as well as the electricity used for keeping the
lights on.
OBJECTIVES:
1.Maintain streetlights and replace them with high-powered, energy efficient LED lights.
2.Draft a new street lighting policy.
ISSUES:
1.Verify lamp and fixtures maintenance by utility companies.
2.Maintenance and upgrades on aging signal systems and streetlights.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The supplies budget decreased from the budgeted one-time replacement of the city’s holiday
lights in 2023, which ended up being repaired rather than replaced. Electricity for the
streetlights is the largest budgeted expenditure at $240,000, which was increased in 2024 in
anticipation of increased usage along with contracted installation of holiday light fixtures in the
Downtown.
Measurement 2022 2023 2024 2025
Street lights maintained*973 973 1,025 1,025
Utilities expenses $201,145 $201,180 $171,109 $240,000
*Includes those owned by the city and Xcel Energy.
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
PW - STREET LIGHTING Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 882$ -$ -$ -$ -$ ---
Supplies 5,083 857 12,000 8,099 10,000 -16.7%
Other Services & Charges 220,724 242,625 310,000 195,079 281,000 -9.4%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 226,689$ 243,482$ 322,000$ 203,178$ 291,000$ -9.6%
143Table of Contents
REFUSE COLLECTION (101-43230)
DEPARTMENT: Public Works SUPERVISOR: Refuse Collection
ACTIVITY SCOPE:
The city contracts with a private hauler for residential refuse and recycling collection services.
OBJECTIVES:
1. Offer cost-effective, convenient and quality refuse and recycling removal services to
residential properties in the city.
ISSUES:
1. Wear and tear on city streets.
2. Desire to increase recycling efficiency and effectiveness.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Nearly the entire budget is based on the city’s contract obligations with its private refuse
hauler. The contract includes fixed rates for the five-year term, which expires on May 31, 2025.
The contract increases annually with inflation and the addition of residents/customers. An RFP
will be issued in 2025 to ensure contract costs remain competitive.
Measurement 2022 2023 2024 2025
Residential refuse collections 52 52 52 52
Residential recycling collections 26 26 26 26
Residential container base 4,159 4,192 4,248 4,300
Additional containers 652 664 663 665
Recycling containers 4,757 4,790 4,829 4,850
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
REFUSE COLLECTION Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies - - - - - ---
Other Services & Charges 784,052 817,199 880,557 911,886 900,000 2.2%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 784,052$ 817,199$ 880,557$ 911,886$ 900,000$ 2.2%
144Table of Contents
SENIOR CENTER (101-45175)
DEPARTMENT: Recreation and Culture SUPERVISOR: City Administrator
ACTIVITY SCOPE:
The senior center facility is housed in the Monticello Community Center complex. The facility is
maintained by the city, but senior center management is provided by an outside entity.
OBJECTIVES:
1.Maintain a clean, modern facility for use by Monticello’s senior citizens.
2.Engage senior citizen participation in other community center activities.
ISSUES:
1.Limited space within community center facility.
2.Increasing utilities and maintenance costs.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The senior center is located within the community center complex. The city maintains and
insures the senior center, which requires some community center staff time, but is so minimal
that no staff wages are formally allocated to the budget unit. Additionally, the city gives an
annual contribution to the group managing the senior center. The 2025 adopted contribution is
$70,000.
Measurement 2022 2023 2024 2025
Outcomes/Effectiveness
Volunteers hours 7,004 9,485 9,487 9,500
Noon meals served 3,108 3,016 3,441 3,225
Work Load:
Unduplicated participants 2,450 2,495 2,638 2,575
Duplicated participants 24,795 28,918 30,253 29,500
Received phone calls 3,875 3,793 3,759 3,775
Activities offered 127 129 148 140
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
SENIOR CENTER Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 1,219$ 1,457$ 863$ 1,143$ 863$ 0.0%
Supplies 501 - - - - ---
Other Services & Charges 106,402 101,316 103,500 103,787 106,500 2.9%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 108,122$ 102,773$ 104,363$ 104,930$ 107,363$ 2.9%
145Table of Contents
PARK OPERATIONS (101-45201)
DEPARTMENT: Recreation and Culture SUPERVISOR: Parks Superintendent
ACTIVITY SCOPE:
The park operations activity maintains the parks and trails within the city and at the city’s area
of the Bertram Chain of Lakes Regional Park (BCOL). This includes maintaining and improving
playground and picnic facilities, fertilizing and mowing grass, maintaining athletic fields,
flooding and maintaining outdoor ice rinks, snow and ice removal on pathways, and tree
preservation within the parks system.
OBJECTIVES:
1.Maintain a high-quality parks and trails system.
2.Improve efficiencies through use of the city’s GIS.
3.Complete plan for the Bertram Chain of Lakes Regional Park.
ISSUES:
1.Increase in maintenance costs with acquisition of more park land.
2.Coordination with other entities regarding park use and design.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 personnel services budget includes a full step increase, and a 3.5% market rate wage
increase offset by the along a decrease in budgeted hours for a recreation coordinator/league
manager. Supplies increase for seed to plant native landscaping in select areas, which will offset
future maintenance costs. Other services & charges increase to reinstitute pathway
maintenance projects in 2024. Additionally, a parks master plan increased Other services &
charges in 2023 and 2024. Capital outlay reflects the acquisition of vehicles and machinery
through the Central Equipment internal service fund.
Measurement 2022 2023 2024 2025
Park land acres maintained 365 365 365 365
Trail miles maintained 43.0 43.0 47.0 50.0
Park events held 215 225 245 250
Winter skating days 120 75 25 60
Full-Time Equivalents 9.40 9.20 9.55 9.40
GENERAL FUND 2022 2023 2024 2024 2025 %
PARK - OPERATIONS Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 733,893$ 808,869$ 795,908$ 828,311$ 814,031$ 2.3%
Supplies 149,106 208,369 224,999 213,847 254,000 12.9%
Other Services & Charges 210,296 335,994 409,544 317,602 395,123 -3.5%
Capital Outlay 141,800 147,700 145,600 145,600 179,900 23.6%
TOTAL EXPENDITURES 1,235,095$ 1,500,932$ 1,576,051$ 1,505,360$ 1,643,054$ 4.3%
146Table of Contents
PARK BALLFIELDS (101-45203)
DEPARTMENT: Recreation and Culture SUPERVISOR: Parks Superintendent
ACTIVITY SCOPE:
The park ballfields activity prepares and maintains city athletic fields, including the NSP (Xcel)
Ballfields.
OBJECTIVES:
1.Prepare and maintain city athletic fields to enhance player and visitor experience.
2.Improve the structures at the ballfields.
ISSUES:
1.Demographic and activity trends.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2025 budget is slightly increased from the budget in prior years. An act of vandalism in
2022 increased Other services & charges. However, the increases expenditures were offset by
insurance claim proceeds.
Measurement 2022 2023 2024 2025
Ball games played, number of 650 650 680 700
Soccer fields maintained 24 24 24 24
Lacrosse fields maintained 10 10 12 12
Football fields maintained 5 7 7 7
Ball fields maintained 8 12 12 12
Number of times mowed 50 50 50 50
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
PARK - BALLFIELDS Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies 3,481 9,791 10,600 15,097 13,000 22.6%
Other Services & Charges 56,273 12,876 18,065 10,260 21,100 16.8%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 59,754$ 22,667$ 28,665$ 25,357$ 34,100$ 19.0%
147Table of Contents
PUBLIC ARTS (101-45204)
DEPARTMENT: Recreation and Culture SUPERVISOR: Parks Superintendent
ACTIVITY SCOPE:
The public arts activity is a focused use of arts and culture as a catalyst for economic and
community development. While art in and of itself can be valuable, the purpose is to harness
the creative energy within the community and channel it into revitalizing downtown and
creating connections between people and community.
OBJECTIVES:
1.Enhance the community aesthetics and revitalize downtown.
2.Engage the community in creating public art.
3.Connect people to the community.
ISSUES:
1.Perception of need.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Other services & charges include contracting with two creative consultants with increased
participation of the community. Part time supplemental support increased Other services &
charges in 2023 and 2024 with grant funding providing offsetting revenue. Anticipated projects
funded through Central Minnesota Arts Board (CMAB) grants are difficult to predict, however
other services & charges expenditures are budgeted similar to prior year actual costs.
Measurement 2022 2023 2024 2025
Public Art Installations 32 10 20 20
City Events Participated In --6 6 6
MontiArts Events --10 26 26
MontiArts Attendees --716 2,585 2,800
Programming Events --261 249 260
Programming Attendees 242 5,234 7,084 7,600
*MontiArts data was further developed in 2023 and prior year information is not availa
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
PARK - PUBLIC ARTS Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 221$ 1,442$ -$ 1,658$ -$ ---
Supplies 14,797 5,361 7,200 6,115 7,550 4.9%
Other Services & Charges 131,264 147,464 167,703 146,744 141,578 -15.6%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 146,282$ 154,267$ 174,903$ 154,517$ 149,128$ -14.7%
148Table of Contents
LIBRARY (101-45501)
DEPARTMENT: Recreation and Culture SUPERVISOR: City Administrator
ACTIVITY SCOPE:
Library services are contracted through the Great River Regional Library System. The city owns
and maintains the library building and provides programs through the library to residents.
OBJECTIVES:
1.Administer quality programs and life-long learning opportunities for residents.
2.Provide access to global information resources.
ISSUES:
1.Maintaining a relevant role in the community.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Great River Regional Library (GRRL) operates the Monticello Public Library while the city
maintains and insures the library building. Upkeep may require some maintenance staff time,
which is included in Other services & charges and paid for via the Facilities Maintenance
internal service fund. Total 2025 estimated expenditures remain consistent with prior years; a
re-carpeting project was included in the 2024 budget and a fire system replacement is included
in the 2025 budget. By state statute, the city must annually expend at least $35,160 for the
library.
Measurement 2022 2023 2024 2025
Checked out items 138,428 134,747 123,337 130,000
Number of requests placed 4,754 4,992 4,998 5,000
Summer reading participants 829 891 748 850
Winter reading participants 237 80 160 175
Patrons using wireless 2,201 3,239 4,163 5,000
Internet sessions used 176 283 196 275
Programs offered 133 134 122 135
Program attendance 3,317 2,801 1,734 1,750
Full-Time Equivalents 0.00 0.00 0.00 0.00
GENERAL FUND 2022 2023 2024 2024 2025 %
LIBRARY Actual Actual Budget Thru 12/31 Budget Change
Personnel Services -$ -$ -$ -$ -$ ---
Supplies 295 1,552 1,500 284 1,500 0.0%
Other Services & Charges 48,106 40,315 86,479 98,767 89,626 3.6%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 48,401$ 41,867$ 87,979$ 99,051$ 91,126$ 3.6%
149Table of Contents
SHADE TREE (101-46102)
DEPARTMENT: Recreation and Culture SUPERVISOR: Park Superintendent
ACTIVITY SCOPE:
Shade Tree consists of planting and maintaining trees and shrubbery within the city limits. This
activity provides for regulating, developing, planting, maintaining, and removing of trees in any
street, park, right-of-way, or other public place. Shade trees aid the larger goal of soil
conservation, climate moderation, air quality, and noise reduction. The budget provides the
mechanisms for funding a uniform program for the purpose of beautifying the community as a
whole and increasing property values.
OBJECTIVES:
1.Offer trees for sale for spring tree planting and education for residents.
2.Replace dead and diseased trees throughout the city and parks as part of the Shade
Tree Disease Control Program.
3.Create a boulevard tree planting program.
ISSUES:
1.Funding availability.
2.Managing stress on trees caused by weather and Emerald Ash Borer (EAB) disease.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
A portion of the total time of park employees is allocated to the Shade Tree activity. The 2025
personnel services budget includes a full step increase and a 3.5% market wage increase.
Supplies budgets decrease with EAB response contracted out to a third party. However, Other
services & charges decrease with less state aid to combat EAB in 2025.
Measurement 2022 2023 2024 2025
Trees planted 75 75 150 300
Trees removed 15 20 60 100
Students in programs 0 0 0 0
Trees with Emerald Ash Borer 25 45 400 600
Full-Time Equivalents 0.90 0.90 0.90 0.90
GENERAL FUND 2022 2023 2024 2024 2025 %
SHADE TREE Actual Actual Budget Thru 12/31 Budget Change
Personnel Services 70,802$ 75,207$ 105,825$ 75,345$ 107,973$ 2.0%
Supplies 20,802 10,251 33,000 21,186 7,000 -78.8%
Other Services & Charges 2,613 42,414 127,897 15,607 110,963 -13.2%
Capital Outlay - - - - - ---
TOTAL EXPENDITURES 94,217$ 127,872$ 266,722$ 112,138$ 225,936$ -15.3%
150Table of Contents
Special Revenue Funds
2025 Adopted Budget
SPECIAL REVENUE FUNDS - SUMMARY
DESCRIPTION
The city currently has three active special revenue funds. Special revenue funds are used to
account for the proceeds of specific revenue sources that are restricted, committed, or
assigned to expenditures for specific purposes other than debt service or capital projects.
Unlike the General Fund, the budgets of special revenue funds do not always balance. Special
revenue funds use the modified accrual basis of accounting for both financial reporting and
budgeting purposes. In 2021, the Economic Development Authority (EDA) Fund was reclassified
from a blended component unit (special revenue fund) to a discretely-presented component
unit in the city’s Annual Comprehensive Financial Report. It was reclassified as such for the first
time in the 2024 budget.
BUDGET SUMMARY
TOTAL SPECIAL REVENUE FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 485,000$ 515,000$ 525,000$ 525,000$ 535,000$ 1.9%
Intergovernmental Revenues 385,718 415,396 - 1,500 - ---
Charges for Services 1,075,628 1,298,941 1,441,100 1,318,214 1,450,800 0.7%
Miscellaneous 9,574 103,894 41,900 92,531 60,200 43.7%
Operating Transfers In - - 100,000 100,000 100,000 0.0%
TOTAL REVENUES 1,955,920$ 2,333,231$ 2,108,000$ 2,037,245$ 2,146,000$ 1.8%
EXPENDITURES
Personnel Services 1,025,452$ 1,204,984$ 1,313,235$ 1,290,318$ 1,195,454$ -9.0%
Supplies 98,509 182,194 107,000 138,731 130,700 22.1%
Other Services & Charges 667,008 752,315 668,765 668,150 756,846 13.2%
Capital Outlay 94,019 27,843 - 96,760 20,000 ---
TOTAL EXPENDITURES 1,884,988$ 2,167,336$ 2,089,000$ 2,193,959$ 2,103,000$ 0.7%
FUND BALANCE - JANUARY 1 1,394,543$ 1,465,475$ 1,631,370$ 1,631,370$ 1,474,656$
Excess (Deficiency) of
Revenues over Expenditures 70,932 165,895 19,000 (156,714) 43,000
FUND BALANCE - DECEMBER 31 1,465,475$ 1,631,370$ 1,650,370$ 1,474,656$ 1,517,656$
151Table of Contents
CEMETERY FUND (215-49010)
DEPARTMENT: Recreation and Culture SUPERVISOR: Parks Superintendent
ACTIVITY SCOPE:
The Cemetery Fund sustains itself with revenues from plot sales and from services, such as
excavations, staking for monuments, memorial programs, and perpetual care. The city
maintains two cemeteries: Riverside and Hillside. Staff assist customers/visitors with
memorials and perpetual care for both. Hillside cemetery is no longer open to burial, and
expenditures are recorded through park operations in the General Fund. An ossuary-
columbarium was installed in Riverside Cemetery in 2019, which is, therefore, also accounted
for in this fund.
OBJECTIVES:
1.Provide the public with a way to memorialize loved ones after passing away in a
courteous, professional manner.
2.Maintain and beautiful and comforting environment on cemetery grounds and
around grave markers.
ISSUES:
1.Increasing maintenance costs.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Plots occupied 3,650 3,670 3,693 3,720
Plots reserved 645 663 661 650
Plots available for sale 1,093 1,086 1,069 1,049
Number of plots sold 32 18 17 20
Number of internments 25 19 27 25
Number of markers staked 17 18 18 20
Columbarium slots occupied 16 11 14 19
Columbarium slots reserved 8 20 28 33
Columbarium slots available 80 75 67 62
Columbarium slots sold 6 5 8 5
Ossuary slots occupied 3 4 4 5
Ossuary slots reserved 52 47 47 49
Ossuary slots available 267 272 272 270
Ossuary slots sold 2 0 0 2
Full-Time Equivalents 0.00 0.00 0.00 0.00
152Table of Contents
BUDGET:
BUDGET COMMENTARY:
Sales of burial plots and ossuary-columbarium slot remain consistent with prior years but are
budgeted conservatively. A rebound in the city’s investment portfolio created positive
miscellaneous revenues, which are mostly comprised of interest earnings. While there are no
city employees specifically dedicated to the Cemetery function, the parks department staff
sometimes perform tasks which are allocated to this fund.
CEMETERY 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 67,838$ 43,727$ 41,700$ 51,815$ 47,700$ 14.4%
Miscellaneous (3,518) 10,644 300 7,999 4,300 1333.3%
TOTAL REVENUES 64,320$ 54,371$ 42,000$ 59,814$ 52,000$ 23.8%
EXPENDITURES
Personnel Services 385$ -$ 2,228$ -$ 2,228$ 0.0%
Supplies 106 217 1,100 1,431 500 -54.5%
Other Services & Charges 26,169 23,786 27,672 27,322 33,272 20.2%
TOTAL EXPENDITURES 26,660$ 24,003$ 31,000$ 28,753$ 36,000$ 16.1%
FUND BALANCE - JANUARY 1 80,184$ 117,844$ 148,212$ 148,212$ 179,273$
Excess (Deficiency) of
Revenues over Expenditures 37,660 30,368 11,000 31,061 16,000
FUND BALANCE - DECEMBER 31 117,844$ 148,212$ 159,212$ 179,273$ 195,273$
153Table of Contents
SMALL CITIES DEVELOPMENT PROGRAM (SCDP) FUND (221-46500)
DEPARTMENT: Small Cities Development Program Fund SUPERVISOR: Community Development Director
ACTIVITY SCOPE:
Following state and federal guidelines, the SCDP Fund administers loans to local businesses.
OBJECTIVES:
1.Match available funds with qualifying businesses in Monticello.
ISSUES:
1.Number of qualified businesses in Monticello.
2.Loan program and bank requirements.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Repayment of loans and interest earned on investments make up the anticipated activity in
2025. A rebound in the city’s investment portfolio created positive miscellaneous revenues in
2023 and 2024, which are comprised of interest earnings on investments and outstanding
loans.
Measurement 2022 2023 2024 2025
Loans outstanding 1 1 1 2
Loans originated 0 0 0 1
Full-Time Equivalents 0.00 0.00 0.00 0.00
SCDP FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Miscellaneous (26,413)$ 41,043$ 8,000$ 44,900$ 27,000$ 237.5%
FUND BALANCE - JANUARY 1 924,622$ 898,209$ 939,252$ 939,252$ 984,152$
Excess (Deficiency) of
Revenues over Expenditures (26,413) 41,043 8,000 44,900 27,000
FUND BALANCE - DECEMBER 31 898,209$ 939,252$ 947,252$ 984,152$ 1,011,152$
154Table of Contents
COMMUNITY CENTER FUND (226-4512x)
DEPARTMENT: Community Center SUPERVISOR: Parks, Arts & Recreation Director
ACTIVITY SCOPE:
The Monticello Community Center (MCC) provides space for a variety of recreational,
professional, and educational opportunities. Expenditures for the community center are
divided into six activities: administration, rentals and events, aquatics, guest services and
concessions, maintenance, and programming.
OBJECTIVES:
1.Provide a place to facilitate community connection and wellness.
2.Repurpose the area previously used as a wheel park (skateboard, bike, and
rollerblade) including design, financing, construction, and marketing.
3.Develop an online registration system for program and membership sign up.
4.Invest in facility improvements to increase customers.
5.Improve financial controls and budget management.
ISSUES:
1.Limitations to facility size and parking availability.
2.Competition from other fitness facilities.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Customer visits, number of 117,942 ---228,000 234,840
Gross program sales 62,485$ 51,181$ 61,504$ 85,000$
Facility rental revenue 183,114$ 214,357$ 219,607$ 237,500$
Annual memberships 416 349 376 387
Monthly memberships 1,166 1,366 1,677 1,727
Three-month memberships 186 203 247 254
Ratio of annual memberships
to other memberships 0.31 0.22 0.20 0.20
Full-Time Equivalents 18.05 20.75 22.25 22.30
155Table of Contents
BUDGET:
BUDGET COMMENTARY:
The MCC’s largest revenue sources are charges for services (memberships and day passes) and
property taxes, and an operating transfer in from the Deputy Registrar Fund. The city was
awarded $1.5 million in American Rescue Plan Act (ARPA) funding in 2021 through 2023, which
was all used in the Community Center Fund for wages and benefits in the aftermath of the
COIVD-19 pandemic.
With some uncertainty over how the economy will affect user and member levels, the 2025
budget is conservative in estimating revenues and liberal in estimating potential costs. Capital
expenditures were halted when the pandemic began and were delayed to conserve resources.
However, in thinking long-term, methodical investments in the facility to engage patrons began
again in 2022. Beginning in 2024, the city began financing certain capital investments in the
facility out of the Capital Projects Fund in the interest of consistency with other city facilities.
COMMUNITY CENTER 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 485,000$ 515,000$ 525,000$ 525,000$ 535,000$ 1.9%
Intergovernmental Revenues 385,718 415,396 - 1,500 - ---
Charges for Services 1,007,790 1,255,214 1,399,400 1,266,399 1,403,100 0.3%
Miscellaneous 39,505 52,207 33,600 39,632 28,900 -14.0%
Operating Transfers In - - 100,000 100,000 100,000 0.0%
TOTAL REVENUES 1,918,013$ 2,237,817$ 2,058,000$ 1,932,531$ 2,067,000$ 0.4%
EXPENDITURES
Personnel Services 1,025,067$ 1,204,984$ 1,311,007$ 1,290,318$ 1,193,226$ -9.0%
Supplies 98,403 181,977 105,900 137,300 130,200 22.9%
Other Services & Charges 640,839 728,529 641,093 640,828 723,574 12.9%
Capital Outlay 94,019 27,843 - 96,760 20,000 ---
TOTAL EXPENDITURES 1,858,328$ 2,143,333$ 2,058,000$ 2,165,206$ 2,067,000$ 0.4%
FUND BALANCE - JANUARY 1 389,737$ 449,422$ 543,906$ 543,906$ 311,231$
Excess (Deficiency) of
Revenues over Expenditures 59,685 94,484 - (232,675) -
FUND BALANCE - DECEMBER 31 449,422$ 543,906$ 543,906$ 311,231$ 311,231$
156Table of Contents
Debt Service Fund
2025 Adopted Budget
DEBT SERVICE FUNDS - SUMMARY
DESCRIPTION
Debt services funds are used to account for the accumulation of resources for the payment of
general long-term debt, excluding debt issued by an enterprise or internal service fund. Debt
service funds use the modified accrual basis of accounting for both financial reporting and
budgeting purposes. The city has six active debt service (sub)funds that are combined into one
debt service fund for financial reporting.
The city's bond rating was downgraded from Aa3 to A2 by Moody's Investor Services in 2012.
This rating was upgraded to A1 with the sale of the city’s 2019A debt issue in 2019 and further
upgraded to Aa3 in 2023. Fund balances in some (sub)funds declined with planned use of fund
balances built up over time due to items such as prepaid assessments.
BUDGET SUMMARY
TOTAL DEBT SERVICE FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 2,311,400$ 1,999,581$ 2,026,175$ 2,026,175$ 2,196,193$ 8.4%
Special Assessments 317,269 300,188 244,579 277,733 231,769 -5.2%
Miscellaneous (53,740) 60,046 9,246 43,774 21,038 127.5%
Operating Transfers In 197,925 - - - - ---
TOTAL REVENUES 2,772,854$ 2,359,815$ 2,280,000$ 2,347,682$ 2,449,000$ 7.4%
EXPENDITURES
Other Services & Charges 7,252$ 3,000$ 3,000$ 6,200$ 3,000$ 0.0%
Debt Service 2,806,709 2,603,184 2,603,000 2,600,834 2,609,000 0.2%
Operating Transfers Out 108,802 - - - - ---
TOTAL EXPENDITURES 2,922,763$ 2,606,184$ 2,606,000$ 2,607,034$ 2,612,000$ 0.2%
FUND BALANCE - JANUARY 1 1,124,209$ 974,300$ 727,931$ 727,931$ 468,579$
Excess (Deficiency) of
Revenues over Expenditures (149,909) (246,369) (326,000) (259,352) (163,000)
FUND BALANCE - DECEMBER 31 974,300$ 727,931$ 401,931$ 468,579$ 305,579$
Original Interest Final Balance as of
Bond Issue Issue Rate Maturity 12/31/2024
2015B G.O. Bonds $2,605,000 1.50 - 3.00%12/15/2030 $1,155,000
2016A G.O. Bonds 4,900,000 2.00 - 3.00%12/15/2030 1,255,000
2017A G.O. Bonds 5,000,000 2.00 - 3.00%12/15/2032 2,370,000
2018A G.O. Bonds 5,000,000 3.00 - 3.38%12/15/2032 3,120,000
2019A G.O. Bonds 8,000,000 2.00 - 2.30%12/15/2034 5,190,000
2020A G.O. Bonds 2,200,000 0.40 - 2.70%12/15/2032 1,340,000
157Table of Contents
2015B G.O. BOND SUB-FUND (319-47000)
DEPARTMENT: Debt Service SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The 2015B G.O. Street Reconstruction and Improvement Bonds provided financing for School
Boulevard, Fallon Avenue, and 85th Street improvements. This issue also provided financing for
street and other infrastructure improvements in the area east of Highway 25 and north of
Interstate 94. The city levies for the gap between annual debt service payments and annual
assessment collections. The bonds have an average interest rate of 2.5856% and were
redeemable in December of 2022.
OBJECTIVES:
1.Make scheduled debt payments in a timely manner.
2.Redeem or refund when feasible.
ISSUES:
1.Balancing the property tax levy for this bond with the needs of other debt.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Assessment balance $51,585 $34,390 $17,195 $0
Delinquent balance $10,403 $0 $0 $0
Prepaid assessments $0 $0 $0 $0
Assessment rolls 1 1 1 -
Assessed parcels 1 1 1 -
2015B G.O. Bonds 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 192,650$ 164,435$ 165,223$ 165,223$ 160,879$ -2.6%
Special Assessments 10,402 31,242 19,000 19,000 18,098 -4.7%
Miscellaneous (6,508) 7,290 1,777 6,038 5,023 182.7%
TOTAL REVENUES 196,544$ 202,967$ 186,000$ 190,261$ 184,000$ -1.1%
EXPENDITURES
Other Services & Charges 417$ 500$ 500$ 450$ 500$ 0.0%
Debt Service 210,300 212,000 213,500 212,750 213,500 0.0%
TOTAL EXPENDITURES 210,717$ 212,500$ 214,000$ 213,200$ 214,000$ 0.0%
FUND BALANCE - JANUARY 1 135,876$ 121,703$ 112,170$ 112,170$ 89,231$
Excess (Deficiency) of
Revenues over Expenditures (14,173) (9,533) (28,000) (22,939) (30,000)
FUND BALANCE - DECEMBER 31 121,703$ 112,170$ 84,170$ 89,231$ 59,231$
158Table of Contents
BUDGET COMMENTARY:
The $2,605,000 2015B G.O. bond issue has two components: $1,885,000 street reconstruction
portion and $720,000 improvement portion. Property taxes support the reconstruction portion
of the debt issue. The improvement portion is supported by a single assessment of $175,000 on
school district property and property taxes. The tax levy covers the gap between assessment
revenue and debt service payments. Developer fees were assessed to platted parcels in 2021
causing an increase in assessment rolls and assessed parcels related to the bond issue.
REMAINING DEBT SERVICE:
Payable Principal Interest Rate Total
6/15/2025 -$ 16,413$ 16,413$
12/15/2025 180,000 16,413 2.50% 196,413
6/15/2026 -14,162 14,162
12/15/2026 185,000 14,162 2.50% 199,162
6/15/2027 -11,850 11,850
12/15/2027 185,000 11,850 3.00% 196,850
6/15/2028 -9,075 9,075
12/15/2028 195,000 9,075 3.00% 204,075
6/15/2029 -6,150 6,150
12/15/2029 200,000 6,150 3.00% 206,150
6/15/2030 -3,150 3,150
12/15/2030 210,000 3,150 3.00% 213,150
Total 1,155,000$ 121,600$ 1,276,600$
GO Bonds, Series 2015B
159Table of Contents
2016A G.O. BOND SUB-FUND (320-47000)
DEPARTMENT: Debt Service SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The 2016A G.O. Street Reconstruction and Improvement Bonds financed improvements
included in the 2016 core street project and at the intersection of Highway 25 and 7th Street.
The city levies for the gap between annual debt service payments and annual assessment
collections. The bonds have an average interest rate of 2.1034% and were redeemable in
December of 2023.
OBJECTIVES:
1.Make scheduled debt payments in a timely manner.
2.Redeem or refund when feasible.
ISSUES:
1.Balancing the property tax levy for this bond with the needs of other debt.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Assessment balance $246,567 $182,753 $114,131 $58,129
Delinquent balance $77 $177 $2,058 $0
Prepaid assessments $7,209 $2,703 $8,412 $0
Assessment rolls 2 2 2 2
Assessed parcels 66 64 64 59
2016A G.O. Bonds 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 406,929$ 282,559$ 357,979$ 357,979$ 433,189$ 21.0%
Special Assessments 83,116 73,894 68,528 69,293 65,110 -5.0%
Miscellaneous (17,733) 16,277 1,493 9,822 3,701 147.9%
TOTAL REVENUES 472,312$ 372,730$ 428,000$ 437,094$ 502,000$ 17.3%
EXPENDITURES
Other Services & Charges 417$ 500$ 500$ 450$ 500$ 0.0%
Debt Service 526,850 527,450 528,500 527,850 528,500 0.0%
TOTAL EXPENDITURES 527,267$ 527,950$ 529,000$ 528,300$ 529,000$ 0.0%
FUND BALANCE - JANUARY 1 368,685$ 313,730$ 158,510$ 158,510$ 67,304$
Excess (Deficiency) of
Revenues over Expenditures (54,955) (155,220) (101,000) (91,206) (27,000)
FUND BALANCE - DECEMBER 31 313,730$ 158,510$ 57,510$ 67,304$ 40,304$
160Table of Contents
BUDGET COMMENTARY:
The $4,900,000 2016A G.O. bond issue has two components: $770,000 street reconstruction
portion and $4,130,000 improvement portion. Property taxes support the reconstruction
portion of the debt issue. The improvement portion is supported by assessments of $1,143,000
in the core street reconstruction area. Property taxes are levied for the gap between
assessment revenue and debt service payments. Future levies will be adjusted to reflect
assessment prepayments, interest earned on the prepayments and interest foregone on the
prepayments.
REMAINING DEBT SERVICE:
Payable Principal Interest Rate Total
6/15/2025 -$ 13,775$ 13,775$
12/15/2025 500,000 13,775 2.00% 513,775
6/15/2026 -8,775 8,775
12/15/2026 510,000 8,775 2.00% 518,775
6/15/2027 -3,675 3,675
12/15/2027 60,000 3,675 3.00% 63,675
6/15/2028 -2,775 2,775
12/15/2028 60,000 2,775 3.00% 62,775
6/15/2029 -1,875 1,875
12/15/2029 60,000 1,875 3.00% 61,875
6/15/2030 -975 975
12/15/2030 65,000 975 3.00% 65,975
Total 1,255,000$ 63,700$ 1,318,700$
GO Bonds, Series 2016A
161Table of Contents
2017A G.O. BOND SUB-FUND (321-47000)
DEPARTMENT: Debt Service SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The 2017A G.O. Improvement and Abatement Bonds financed improvements to rural outlying
roads and various other city street projects. Additionally, the issue provided funding for Fallon
Avenue overpass right-of-way acquisition, engineering, and construction. The bonds have an
average interest rate of 2.443% and are redeemable in December of 2026.
OBJECTIVES:
1.Make scheduled debt payments in a timely manner.
2.Redeem or refund when feasible.
ISSUES:
1.Balancing the property tax levy for this bond with the needs of other debt.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Assessment balance $150,373 $118,456 $87,460 $58,609
Delinquent balance $51 $1,046 $314 $0
Prepaid assessments $9,211 $1,842 $1,382 $0
Assessment rolls 2 2 2 2
Assessed parcels 52 51 50 49
2017A G.O. Bonds 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 427,367$ 299,532$ 326,842$ 326,842$ 403,942$ 23.6%
Special Assessments 49,837 37,823 35,488 37,280 33,612 -5.3%
Miscellaneous (13,567) 13,880 1,670 8,331 3,446 106.3%
TOTAL REVENUES 463,637$ 351,235$ 364,000$ 372,453$ 441,000$ 21.2%
EXPENDITURES
Other Services & Charges 417$ 500$ 500$ 450$ 500$ 0.0%
Debt Service 469,840 467,140 469,500 469,340 471,500 0.4%
TOTAL EXPENDITURES 470,257$ 467,640$ 470,000$ 469,790$ 472,000$ 0.4%
FUND BALANCE - JANUARY 1 280,978$ 274,358$ 157,953$ 157,953$ 60,616$
Excess (Deficiency) of
Revenues over Expenditures (6,620) (116,405) (106,000) (97,337) (31,000)
FUND BALANCE - DECEMBER 31 274,358$ 157,953$ 51,953$ 60,616$ 29,616$
162Table of Contents
BUDGET COMMENTARY:
The $5,000,000 2017A G.O. bond issue has two components: $2,040,000 improvement portion
and $2,960,000 abatement portion. Property taxes and assessments support the improvement
portion of the debt issue. The abatement portion is supported by a tax abatement levy for bond
principal and a debt service levy for bond interest. Property taxes will be levied for any gap
between assessment revenue and debt service.
REMAINING DEBT SERVICE:
Payable Principal Interest Rate Total
6/15/2025 -$ 30,420$ 30,420$
12/15/2025 410,000 30,420 2.00% 440,420
6/15/2026 -26,320 26,320
12/15/2026 420,000 26,320 2.50% 446,320
6/15/2027 -21,069 21,069
12/15/2027 430,000 21,069 2.50% 451,069
6/15/2028 -15,695 15,695
12/15/2028 210,000 15,695 2.50% 225,695
6/15/2029 -13,070 13,070
12/15/2029 215,000 13,070 2.60% 228,070
6/15/2030 -10,275 10,275
12/15/2030 220,000 10,275 3.00% 230,275
6/15/2031 -6,975 6,975
12/15/2031 230,000 6,975 3.00% 236,975
6/15/2032 -3,525 3,525
12/15/2032 235,000 3,525 3.00% 238,525
Total 2,370,000$ 254,698$ 2,624,698$
GO Bonds, Series 2017A
163Table of Contents
2018A G.O. BOND SUB-FUND (322-47000)
DEPARTMENT: Debt Service SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The 2018A G.O. Abatement Bonds provided $5,000,000 of funding for Fallon Avenue overpass
right-of-way acquisition, engineering, and construction. The bonds have an average interest
rate of 3.151% and are redeemable in December of 2026. Abatement bonds were also issued
in 2017 and 2019 for the remaining costs on the overpass project. All three abatement issues
(2017, 2018, and 2019) have the same redemption date and term, with the last payment
occurring in 2032.
OBJECTIVES:
1.Make scheduled debt payments in a timely manner.
2.Redeem or refund when feasible.
ISSUES:
1.Balancing the property tax levy for this bond with the needs of other debt.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The $5,000,000 2018A G.O. bond issue has only one component: Abatement. A debt service
levy covers the annual bond interest payment, and a tax abatement levy covers the annual
bond principal payment.
Measurement 2022 2023 2024 2025
Not Applicable
2018A G.O. Bonds 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 451,812$ 444,232$ 439,337$ 439,337$ 419,127$ -4.6%
Miscellaneous (5,361) 6,056 1,663 3,678 2,873 72.8%
TOTAL REVENUES 446,451$ 450,288$ 441,000$ 443,015$ 422,000$ -4.3%
EXPENDITURES
Other Services & Charges 417$ 500$ 500$ 450$ 500$ 0.0%
Debt Service 447,038 447,438 447,500 447,538 447,500 0.0%
TOTAL EXPENDITURES 447,455$ 447,938$ 448,000$ 447,988$ 448,000$ 0.0%
FUND BALANCE - JANUARY 1 80,502$ 79,498$ 81,848$ 81,848$ 76,875$
Excess (Deficiency) of
Revenues over Expenditures (1,004) 2,350 (7,000) (4,973) (26,000)
FUND BALANCE - DECEMBER 31 79,498$ 81,848$ 74,848$ 76,875$ 50,875$
ϭϲϰTable of Contents
REMAINING DEBT SERVICE:
Payable Principal Interest Rate Total
6/15/2025 -$ 48,394$ 48,394$
12/15/2025 350,000 48,394 3.00% 398,394
6/15/2026 -43,143 43,143
12/15/2026 360,000 43,143 3.00% 403,143
6/15/2027 -37,744 37,744
12/15/2027 370,000 37,744 3.00% 407,744
6/15/2028 -32,194 32,194
12/15/2028 385,000 32,194 3.00% 417,194
6/15/2029 -26,419 26,419
12/15/2029 395,000 26,419 3.00% 421,419
6/15/2030 -20,494 20,494
12/15/2030 405,000 20,494 3.13% 425,494
6/15/2031 -14,165 14,165
12/15/2031 420,000 14,165 3.25% 434,165
6/15/2032 -7,341 7,341
12/15/2032 435,000 7,341 3.38% 442,341
Total 3,120,000$ 459,788$ 3,579,788$
GO Bonds, Series 2018A Abatement Bonds
165Table of Contents
2019A G.O. BOND SUB-FUND (323-47000)
DEPARTMENT: Debt Service SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The 2019A bonds financed the completion of the Fallon Avenue overpass (abatement bonds),
purchase of a fire ladder truck, construction of a new fire hall, and street improvements. The
bonds have an average interest rate of 2.0825% and are redeemable in December of 2027. All
three abatement bond issues (2017, 2018, and 2019) have the same redemption date and
term with the last payment occurring in 2032.
OBJECTIVES:
1.Make scheduled debt payments in a timely manner.
2.Redeem or refund when feasible.
ISSUES:
1.Balancing the property tax levy for this bond with the needs of other debt.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The 2019A G.O. Bonds are comprised of four components: $1,040,000 abatement, $1,290,000
equipment, $5,350,000 CIP, and $320,000 street improvement. The revenue sources include a
combination of taxes and special assessments.
Measurement 2022 2023 2024 2025
Assessment balance $61,380 $51,150 $40,920 $30,690
Delinquent balance $0 $0 $0 $0
Prepaid assessments $0 $0 $0 $0
Assessment rolls 1 1 1 1
Assessed parcels 9 9 9 9
2019A GO BONDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 709,446$ 697,133$ 711,964$ 711,964$ 680,836$ -4.4%
Special Assessments 13,811 13,299 12,787 12,788 12,276 -4.0%
Miscellaneous (5,948) 6,685 1,249 3,124 2,888 131.2%
TOTAL REVENUES 717,309$ 717,117$ 726,000$ 727,876$ 696,000$ -4.1%
EXPENDITURES
Other Services & Charges 417$ 500$ 500$ 3,950$ 500$ 0.0%
Debt Service 717,938 711,438 710,500 709,838 713,500 0.4%
TOTAL EXPENDITURES 718,355$ 711,938$ 711,000$ 713,788$ 714,000$ 0.4%
FUND BALANCE - JANUARY 1 49,780$ 48,734$ 53,913$ 53,913$ 68,001$
Excess (Deficiency) of
Revenues over Expenditures (1,046) 5,179 15,000 14,088 (18,000)
FUND BALANCE - DECEMBER 31 48,734$ 53,913$ 68,913$ 68,001$ 50,001$
166Table of Contents
REMAINING DEBT SERVICE:
Payable Principal Interest Rate Total
6/15/2025 -$ 53,744$ 53,744$
12/15/2025 605,000 53,744 2.00% 658,744
6/15/2026 - 47,694 47,694
12/15/2026 615,000 47,694 2.00% 662,694
6/15/2027 - 41,544 41,544
12/15/2027 630,000 41,544 2.00% 671,544
6/15/2028 - 35,244 35,244
12/15/2028 645,000 35,244 2.00% 680,244
6/15/2029 - 28,793 28,793
12/15/2029 455,000 28,793 2.00% 483,793
6/15/2030 - 24,244 24,244
12/15/2030 465,000 24,244 2.00% 489,244
6/15/2031 - 19,593 19,593
12/15/2031 475,000 19,593 2.10% 494,593
6/15/2032 - 14,606 14,606
12/15/2032 485,000 14,606 2.20% 499,606
6/15/2033 - 9,271 9,271
12/15/2033 405,000 9,271 2.25% 414,271
6/15/2034 - 4,715 4,715
12/15/2034 410,000 4,715 2.30% 414,715
Total 5,190,000$ 558,896$ 5,748,896$
GO Bonds, Series 2019A
167Table of Contents
2020A G.O. BOND SUB-FUND (324-47000)
DEPARTMENT: Debt Service SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The 2020A bonds financed the 2020 and 2022 Street Improvement projects. The revenue
sources include property taxes and special assessments. The city levies for the gap between
annual debt service payments and annual assessment collections. The bonds have an average
interest rate of 1.5067% and are redeemable in December of 2028.
OBJECTIVES:
1.Make scheduled debt payments in a timely manner.
2.Redeem or refund when feasible.
ISSUES:
1.Balancing the property tax levy for this bond with the needs of other debt.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The city issued the $2,155,000 2020A G.O. Bonds to finance the 2020 and 2022 Street
Improvement projects. Property taxes and special assessments also support debt service
payments. Expenditures consist of principal and interest payments and fiscal agent fees.
Measurement 2022 2023 2024 2025
Assessment balance $760,471 $649,901 $549,232 $470,953
Delinquent balance $930 $2,427 $4,362 $0
Prepaid assessments $96,838 $25,429 $36,300 $0
Assessment rolls 2 2 2 3
Assessed parcels 437 420 414 394
2020A GO BONDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 123,196$ 111,690$ 24,830$ 24,830$ 98,220$ 295.6%
Special Assessments 160,103 143,930 108,776 139,372 102,673 -5.6%
Miscellaneous (4,623) 9,858 1,394 12,781 3,107 122.9%
TOTAL REVENUES 278,676$ 265,478$ 135,000$ 176,983$ 204,000$ 51.1%
EXPENDITURES
Other Services & Charges 4,417$ 500$ 500$ 450$ 500$ 0.0%
Debt Service 236,818 237,718 233,500 233,518 234,500 0.4%
TOTAL EXPENDITURES 241,235$ 238,218$ 234,000$ 233,968$ 235,000$ 0.4%
FUND BALANCE - JANUARY 1 98,836$ 136,277$ 163,537$ 163,537$ 106,552$
Excess (Deficiency) of
Revenues over Expenditures 37,441 27,260 (99,000) (56,985) (31,000)
FUND BALANCE - DECEMBER 31 136,277$ 163,537$ 64,537$ 106,552$ 75,552$
168Table of Contents
REMAINING DEBT SERVICE:
Payable Principal Interest Rate Total
6/15/2025 -$ 9,409$ 9,409$
12/15/2025 215,000 9,409 0.45% 224,409
6/15/2026 - 8,925 8,925
12/15/2026 215,000 8,925 2.00% 223,925
6/15/2027 - 6,775 6,775
12/15/2027 220,000 6,775 2.00% 226,775
6/15/2028 - 4,575 4,575
12/15/2028 225,000 4,575 2.00% 229,575
6/15/2029 - 2,325 2,325
12/15/2029 230,000 2,325 1.00% 232,325
6/15/2030 - 1,175 1,175
12/15/2030 235,000 1,175 1.00% 236,175
Total 1,340,000$ 66,368$ 1,406,368$
GO Bonds, Series 2020A
169Table of Contents
CLOSED DEBT SERVICE FUNDS
CLOSED FUNDS PRESENTED:
•2011A G.O. Refunding Bond Sub-Fund (312-47000)
CLOSED FUNDS BUDGETS:
2011A G.O. BOND FUND (2005A)2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Operating Transfers In 197,925 - - - - ---
TOTAL REVENUES 197,925 -$ -$ -$ -$ ---
EXPENDITURES
Other Services & Charges 750 -$ -$ -$ -$ ---
Debt Service 197,925 - - - - ---
Operating Transfers Out 108,802 - - - - ---
TOTAL EXPENDITURES 307,477 -$ -$ -$ -$ ---
FUND BALANCE - JANUARY 1 109,552$ -$ -$ -$ -$
Excess (Deficiency) of
Revenues over Expenditures (109,552) -$ - - -
FUND BALANCE - DECEMBER 31 -$ -$ -$ -$ -$
ϭϳϬTable of Contents
Capital Project Funds
2025 Adopted Budget
CAPITAL PROJECT FUNDS - SUMMARY
DESCRIPTION
Capital project funds are used to account for financial resources that are restricted, committed,
or assigned to expenditure for capital outlays including the acquisition or construction of capital
facilities and other capital assets—excluding capital assets financed by proprietary funds
(enterprise or internal service). Capital project funds use the modified accrual basis of
accounting for both financial reporting and budgeting purposes. The city has five active capital
project funds. Financing capital asset additions or replacements has been an ongoing challenge,
especially in a city with a growing population while also having its largest property taxpayer
losing value in the past few years. This causes volatile fluctuations in taxes paid in relation to
the city’s tax levy.
BUDGET SUMMARY
TOTAL CAPITAL PROJECTS FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 1,153,476$ 1,548,989$ 1,882,825$ 1,996,693$ 2,400,807$ 27.5%
Franchise & Other Taxes 161,384 157,109 175,000 205,776 150,000 -14.3%
Sales & Use Tax - - - - 1,000,000 ---
Intergovernmental Revenues 746,684 641,606 3,766,513 481,288 1,185,000 -68.5%
Charges for Services 171,697 50,247 - 1,443,826 - ---
Special Assessments 401,086 885,287 106,419 893,257 101,809 -4.3%
Miscellaneous (546,741) 677,599 85,243 607,745 400,384 369.7%
Contributed Capital 7,088 2,421,894 - - - ---
Operating Transfers In 108,801 4,750,000 1,000,000 1,700,000 1,282,000 28.2%
Debt Proceeds - - 30,000,000 - - -100.0%
TOTAL REVENUES 2,203,475$ 11,132,731$ 37,016,000$ 7,328,585$ 6,520,000$ -82.4%
EXPENDITURES
Other Services & Charges 295,187$ 45,171$ 35,000$ 33,737$ -$ -100.0%
Capital Outlay 2,616,780 12,246,515 43,267,000 8,010,130 6,918,000 -84.0%
Operating Transfers Out - - - - 380,000 ---
TOTAL EXPENDITURES 2,911,967$ 12,291,686$ 43,302,000$ 8,043,867$ 7,298,000$ -83.1%
FUND BALANCE - JANUARY 1 14,143,439$ 13,434,947$ 12,275,992$ 12,275,992$ 11,560,710$
Excess (Deficiency) of
Revenues over Expenditures (708,492) (1,158,955) (6,286,000) (715,282) (778,000)
FUND BALANCE - DECEMBER 31 13,434,947$ 12,275,992$ 5,989,992$ 11,560,710$ 10,782,710$
171Table of Contents
CAPITAL PROJECT FUND (400-4xxxx)
DEPARTMENT: Capital Project Fund SUPERVISOR: City Engineer/Public Works Director
ACTIVITY SCOPE:
The Capital Project Fund is a generic fund of the same type used to account for capital asset
construction and acquisitions. Capital assets accounted for in this fund include street
improvements and other infrastructure and buildings.
OBJECTIVES:
1.Maintain and perform upgrades or replacements to existing city infrastructure.
2.Extend city infrastructure to new developments.
3.Acquire large, non-proprietary fund, capital equipment (e.g., fire ladder truck) that the
Central Equipment internal service fund cannot support.
ISSUES:
1.Funding growth and replacement improvements in a stable debt and property tax levy
environment.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Projects supported 9 7 8 6
Assessment balance $2,338,901 $2,761,039 $1,711,408 $1,505,515
Deferred assessments $1,808,419 $1,799,149 $907,083 $907,083
Deferred % of balance 77% 65% 53% 60%
Delinquent balance $3,151 $438 $7,389 $0
Prepaid assessments $235,536 $681,695 $786,356 $0
Assessment rolls 23 21 21 20
Assessed parcels 71 52 41 38
172Table of Contents
BUDGET:
BUDGET COMMENTARY:
Lower required debt service levies created capacity for an increase of $517,982 in the capital
portion of the city’s 2025 property tax levy. The 2025 levy allows smaller capital projects that
are recurring in nature to be funded on a pay-as-you-go basis to preserve the city’s debt
capacity for larger, one-time projects. This also stabilizes the overall levy to accommodate
future debt.
2023 transfers were from the Liquor and Deputy Registrar funds for the improvement project in
Monticello’s core downtown. Contributed capital in 2023 was the County’s portion of the costs
for improvements to Broadway West as part of the Downtown Pedestrian & Roadways
Improvements Project. While debt proceeds were budgeted in 2024, construction of a new
Public Works Facility was paused to allow for additional financial planning; the Capital
Improvement Plan (CIP) shows construction anticipated in 2027.
For 2025, notable projects include: School Boulevard Roundabouts & Improvements, Golf
Course Road trail construction, roundabout construction near Fallon Avenue and 85th Street,
planning for future Fallon Avenue improvements, and facility maintenance and upgrades at the
Community Center. Some funding is budgeted to come from fund balance due to timing of
grant funding receipt.
CAPITAL PROJECT FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 1,153,476$ 1,548,989$ 1,882,825$ 1,996,693$ 2,400,807$ 27.5%
Intergovernmental Revenues 596,684 641,606 3,766,513 481,288 1,185,000 -68.5%
Charges for Services 26,865 - - 1,443,826 - ---
Special Assessments 400,236 884,472 105,640 892,478 101,066 -4.3%
Miscellaneous (459,245) 541,853 75,022 488,054 100,127 33.5%
Contributed Capital 7,088 2,421,894 - - - ---
Operating Transfers In 108,801 3,500,000 1,000,000 1,700,000 880,000 -12.0%
Debt Proceeds - - 30,000,000 - - -100.0%
TOTAL REVENUES 1,833,905$ 9,538,814$ 36,830,000$ 7,002,339$ 4,667,000$ -87.3%
EXPENDITURES
Other Services & Charges 294,687$ 37,501$ 35,000$ 33,737$ -$ -100.0%
Capital Outlay 2,533,085 10,727,535 41,750,000 7,332,164 5,787,000 -86.1%
TOTAL EXPENDITURES 2,827,772$ 10,765,036$ 41,785,000$ 7,365,901$ 5,787,000$ -86.2%
FUND BALANCE - JANUARY 1 11,862,618$ 10,868,751$ 9,642,529$ 9,642,529$ 9,278,967$
Excess (Deficiency) of
Revenues over Expenditures (993,867) (1,226,222) (4,955,000) (363,562) (1,120,000)
FUND BALANCE - DECEMBER 31 10,868,751$ 9,642,529$ 4,687,529$ 9,278,967$ 8,158,967$
173Table of Contents
STREET LIGHTING IMPROVEMENT FUND (403-43162)
DEPARTMENT: Public Works SUPERVISOR: City Engineer/Public Works Director
ACTIVITY SCOPE:
The Street Lighting Improvement Fund provides resources for improvements to the street
lighting system. Electric franchise fees are the fund’s primary revenue sources.
OBJECTIVES:
1.Upgrade traditional lights to colonial style lights.
2.Collaborate with MNDOT to add battery back-up to signals on TH25.
3.Replace and modify lighting system in the downtown area.
4.Add lighting for pathways and other high use areas.
ISSUES:
1.Project scope and timing.
2.Develop a light replacement program with Wright Hennepin Electric and Xcel
Energy.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Franchise and other taxes come from an electric franchise fee imposed on ratepayers in the
city. The capital outlay activity in 2024 was related to the Downtown Pedestrian & Roadways
Improvements project. 2025 operating transfers out is for the costs of street lighting upgrades
as part of the School Boulevard Roundabouts and Improvements project, which will be paid for
out of the Capital Project Fund.
Measurement 2022 2023 2024 2025
Projects supported 1 1 2 1
STREET LIGHT IMPROVEMENTS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Franchise & Other Taxes 161,384$ 157,109$ 175,000$ 205,776$ 150,000$ -14.3%
Miscellaneous (45,716) 71,449 10,000 70,747 10,000 0.0%
Operating Transfers In - 250,000 - - - ---
TOTAL REVENUES 115,668$ 478,558$ 185,000$ 276,523$ 160,000$ -13.5%
EXPENDITURES
Capital Outlay 37,993$ 38,563$ 1,430,000$ 596,882$ -$ -100.0%
Operating Transfers Out - - - - 380,000 ---
TOTAL EXPENDITURES 37,993$ 38,563$ 1,430,000$ 596,882$ 380,000$ -73.4%
FUND BALANCE - JANUARY 1 1,180,208$ 1,257,883$ 1,697,878$ 1,697,878$ 1,377,519$
Excess (Deficiency) of
Revenues over Expenditures 77,675 439,995 (1,245,000) (320,359) (220,000)
FUND BALANCE - DECEMBER 31 1,257,883$ 1,697,878$ 452,878$ 1,377,519$ 1,157,519$
174Table of Contents
PARK & PATHWAY IMPROVEMENT FUND (404-45202)
DEPARTMENT: Recreation & Culture SUPERVISOR: Parks, Arts & Recreation Director
ACTIVITY SCOPE:
Activities of the Park & Pathway Improvement Fund include updating and maintaining the
city's pathway system.
OBJECTIVES:
1.Improve pathways and parks systems.
2.Development of Bertram Chain of Lakes Park.
ISSUES:
1.Time and budget constraints of other projects.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Transfers from other funds typically surpass all other revenue sources. However, 2025 revenues
include a $250,000 donation to be used for new playground equipment at West Bridge Park.
2023 transfers are came from the Liquor Fund, which provided funding for the Bertram Chain of
Lakes (BCOL) Pedestrian and Safety Improvements project. Installation of two playgrounds (one
replacement and one new) and trail improvements near Fallon Avenue and 85th Street make up
the 2025 capital outlay budget.
Measurement 2022 2023 2024 2025
Projects supported 1 1 1 3
PARK & PATHWAY IMPROVEMENT 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Intergovernmental Revenues 150,000$ -$ -$ -$ -$ ---
Miscellaneous (42,464) 57,919 - 41,389 285,000 ---
Operating Transfers In - 1,000,000 - -402,000 ---
TOTAL REVENUES 107,536$ 1,057,919$ -$ 41,389$ 687,000$ ---
EXPENDITURES
Other Services & Charges 500$ 7,670$ -$ -$ -$ ---
Capital Outlay - 1,480,417 87,000 81,084 916,000 952.9%
TOTAL EXPENDITURES 500$ 1,488,087$ 87,000$ 81,084$ 916,000$ 952.9%
FUND BALANCE - JANUARY 1 1,100,571$ 1,207,607$ 777,439$ 777,439$ 737,744$
Excess (Deficiency) of
Revenues over Expenditures 107,036 (430,168) (87,000) (39,695) (229,000)
FUND BALANCE - DECEMBER 31 1,207,607$ 777,439$ 690,439$ 737,744$ 508,744$
175Table of Contents
PARK DEDICATION FUND (405-45202)
DEPARTMENT: Public Works SUPERVISOR: Community Development Director
ACTIVITY SCOPE:
The Park Dedication Fund is used to account for funds charged to developers for future city
park areas.
OBJECTIVES:
1.Provide quality park area within walkable distance to all residential parcels in the
City.
ISSUES:
1.Economic impact on new development and home construction.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The Park Dedication Fund was separated out from the Park & Pathway Improvement Fund in
2021 to properly account for restricted park dedication fees received from developers for the
construction of park areas within new developments. Park dedication fees are an irregular
source of revenue because of unpredictable economic conditions and sporadic new
development. Capital outlay in 2022 consisted of credits to developers for park area
improvements in excess of minimum requirements.
Measurement 2022 2023 2024 2025
Acres deeded to city 1.02 0.00 0.00 4.00
Fees collected*144,832$ 50,247$ -$ -$
*Land may be donated by developer in lieu of paying a park dedication fee.
PARK DEDICATION 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 144,832$ 50,247$ -$ -$ -$ ---
Special Assessments 850 815 779 779 743 -4.6%
Miscellaneous 684 6,378 221 7,555 5,257 2278.7%
TOTAL REVENUES 146,366$ 57,440$ 1,000$ 8,334$ 6,000$ 500.0%
EXPENDITURES
Capital Outlay 45,702$ -$ -$ -$ -$ ---
TOTAL EXPENDITURES 45,702$ -$ -$ -$ -$ ---
FUND BALANCE - JANUARY 1 42$ 100,706$ 158,146$ 158,146$ 166,480$
Excess (Deficiency) of
Revenues over Expenditures 100,664 57,440 1,000 8,334 6,000
FUND BALANCE - DECEMBER 31 100,706$ 158,146$ 159,146$ 166,480$ 172,480$
176Table of Contents
BERTRAM CHAIN OF LAKES SALES TAX FUND (406-45202)
DEPARTMENT: Recreation & Culture SUPERVISOR: Parks, Arts & Recreation Director
ACTIVITY SCOPE:
New construction and rehabilitation of the Bertram Chain of Lakes (BCOL) Regional Athletic
Park.
OBJECTIVES:
1.Utilize restricted sales and use tax funds for the development of Bertram Chain of
Lakes Park.
ISSUES:
1.Prioritization of park buildout with the cost of all proposed improvements, which
exceeds the amount of sales and use tax authorized.
MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
The BCOL Sales Tax Fund was created for 2025 to account for the city’s 0.50% sales and use tax
that takes effect April 1, 2025. Current projections show roughly $1.4 million of revenue will be
raised by the tax annually. Voters approved use of this new tax for the new construction and
rehabilitation of the Bertram Chain of Lakes (BCOL) Regional Athletic Park. Funds can be used to
pay for project costs on a pay-as-you-go basis or funds can be pledged to pay bonds issued to
build the project. The capital outlay budget in 2025 consists of planning and design costs for
projects to occur in 2026 for pickleball courts and a shared maintenance facility with Wright
County.
Measurement 2022 2023 2024 2025
Data under development
BCOL SALES TAX 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Sales & Use Tax -$ -$ -$ -$ 1,000,000$ ---
TOTAL REVENUES -$ -$ -$ -$ 1,000,000$ ---
EXPENDITURES
Capital Outlay -$ -$ -$ -$ 215,000$ ---
FUND BALANCE - JANUARY 1 -$ -$ -$ -$ -$
Excess (Deficiency) of
Revenues over Expenditures - - - - 785,000
FUND BALANCE - DECEMBER 31 -$ -$ -$ -$ 785,000$
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178Table of Contents
Enterprise Funds
2025 Adopted Budget
ENTERPRISE FUNDS - SUMMARY
DESCRIPTION
Enterprise funds are used to report an activity for which a fee is charged to external users for
goods or services. Unlike governmental funds, enterprise funds focus on the determination of
operating income, changes in net position (or cost recovery), financial position, and cash flows.
Enterprise funds use an accrual basis of accounting for financial reporting purposes. A modified
accrual basis will be used for budgeting purposes in this report. Consequently, the bottom line
for each enterprise fund is labeled fund balance rather than net position, which includes capital
assets, long-term debt, and other noncurrent items. Fund balance in enterprise funds is roughly
the same as working capital. The city currently has six active enterprise funds: Water, Sewer,
Stormwater, Liquor (Hi-Way Liquors), Deputy Registrar (DMV), and Fiber Optics (FiberNet).
BUDGET SUMMARY
TOTAL ENTERPRISE FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Franchise & Other Taxes 53,000$ 20,587$ -$ -$ -$ ---
Sale of Goods 7,168,374 7,042,543 7,504,849 6,481,607 7,366,428 -1.8%
Licenses & Permits 2,170 2,865 2,000 4,625 2,000 0.0%
Intergovernmental Revenues 297,608 365,850 1,330,000 60,750 2,485,000 86.8%
Charges for Services 8,902,046 10,370,931 8,458,899 9,769,487 8,853,209 4.7%
Special Assessments 61,712 53,730 10,000 357,110 30,000 200.0%
Miscellaneous (552,513) 1,468,842 134,252 1,633,390 668,363 397.8%
Contributed Capital 612,608 1,373,731 75,000 308,346 - -100.0%
TOTAL REVENUES 16,545,005$ 20,699,079$ 17,515,000$ 18,615,315$ 19,405,000$ 10.8%
EXPENDITURES
Personnel Services 2,535,187$ 2,339,750$ 2,556,843$ 2,435,738$ 2,726,632$ 6.6%
Supplies 5,659,038 5,707,491 6,133,540 5,291,930 6,008,500 -2.0%
Other Services & Charges 3,631,821 3,569,636 4,651,094 3,560,899 4,706,268 1.2%
Capital Outlay - 22,284 4,175,000 - 10,079,000 141.4%
Debt Service 45,451 55,170 367,523 49,211 366,600 -0.3%
Operating Transfers Out - 4,000,000 1,100,000 1,100,000 1,002,000 -8.9%
TOTAL EXPENDITURES 11,871,497$ 15,694,331$ 18,984,000$ 12,437,778$ 24,889,000$ 31.1%
FUND BALANCE - JANUARY 1 23,838,937$ 28,512,445$ 33,517,193$ 33,517,193$ 39,694,730$
Excess (Deficiency) of
Revenues over Expenditures 4,673,508 5,004,748 (1,469,000) 6,177,537 (5,484,000)
FUND BALANCE - DECEMBER 31 28,512,445$ 33,517,193$ 32,048,193$ 39,694,730$ 34,210,730$
179Table of Contents
WATER FUND (601-4944x)
DEPARTMENT: Public Works SUPERVISOR: Utilities Superintendent
ACTIVITY SCOPE:
The Water Fund is a self-sustaining city utility fund with two divisions: water administration
and water operations. The water department manages the water utility, providing a
continuous supply of high-quality water to customers at a reasonable cost. The water system is
maintained at proper pressure levels and is bacteria-free. Further, metering equipment is
maintained to account for accurate usage and billing.
OBJECTIVES:
1.Supply clean, safe drinking water to the residents and businesses of Monticello.
2.Maintain a complete system inventory by adding all GPS data points to GIS system.
3.Improve well head protection program.
4.Advance installation of radio reading devices on water meters.
ISSUES:
1.Demands on staff including additional state and federal regulations and other
projects.
2.Elevated manganese levels.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Water customers 4,621 4,645 4,762 4,700
Meters read 56,402 55,924 57,940 59,000
Meters replaced 75 83 59 75
New meters installed 92 48 117 100
Water locates 1,820 1,619 1,341 1,600
Gallons pumped (MG)627 651 581 650
Valves maintained 479 475 173 475
Hydrants maintained 225 468 154 225
Number of fire hydrants 700 1,019 1,027 1,050
Times mains flushed 2 2 2 2
Mains/wells rebuilt 0 3 0 2
Water towers inspections 2 2 2 2
Reservoir inspections 1 1 0 1
Water samples sent 190 185 183 190
Radio units installed 167 113 519 200
Service shut-offs 26 22 5 25
Full-Time Equivalents 3.60 3.80 3.80 3.90
180Table of Contents
BUDGET:
BUDGET COMMENTARY:
The Water Fund’s main source of revenue is user charges. Rates increase 10% for the base
charge and usage charges in 2025 in anticipation of the need to fund a future water treatment
plant.
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
adjustment. Other services & charges decrease with fewer anticipated repairs and maintenance
needed. Capital outlays in 2025 are for design work for construction of a future water
treatment plant, trunk extensions/improvements on West County Road 39 and Fallon Avenue,
purchase of a replacement truck, and well pump house repairs.
WATER FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Licenses & Permits 2,170$ 2,865$ 2,000$ 4,625$ 2,000$ 0.0%
Intergovernmental Revenues 76,233 101,700 - - - ---
Charges for Services 1,787,688 2,623,776 1,801,955 2,273,806 1,862,750 3.4%
Special Assessments 25,593 26,497 10,000 265,400 9,000 -10.0%
Miscellaneous (204,171) 423,607 56,045 527,925 210,250 275.1%
Contributed Capital 184,921 317,493 15,000 63,429 - -100.0%
TOTAL REVENUES 1,872,434$ 3,495,938$ 1,885,000$ 3,135,185$ 2,084,000$ 10.6%
EXPENDITURES
Personnel Services 345,780$ 381,293$ 418,295$ 412,908$ 454,477$ 8.6%
Supplies 163,865 214,276 281,000 176,146 291,000 3.6%
Other Services & Charges 335,080 361,835 554,705 367,159 524,523 -5.4%
Capital Outlay - - 1,150,000 - 2,102,000 82.8%
TOTAL EXPENDITURES 844,725$ 957,404$ 2,404,000$ 956,213$ 3,372,000$ 40.3%
FUND BALANCE - JANUARY 1 6,511,005$ 7,538,714$ 10,077,248$ 10,077,248$ 12,256,220$
Excess (Deficiency) of
Revenues over Expenditures 1,027,709 2,538,534 (519,000) 2,178,972 (1,288,000)
FUND BALANCE - DECEMBER 31 7,538,714$ 10,077,248$ 9,558,248$ 12,256,220$ 10,968,220$
181Table of Contents
SEWER FUND (602-49480 & 602-4949x)
DEPARTMENT: Public Works SUPERVISOR: Utilities Superintendent
ACTIVITY SCOPE:
The Sewer Fund is a self-sustaining city utility fund. The Sewer Fund has three divisions:
sanitary sewer administration, sanitary sewer collection operations and treatment plant
operations. The water department manages the sanitary sewer system, and a private vendor
provides treatment plant services.
OBJECTIVES:
1.Collect and treat wastewater used by city residents and businesses.
2.Maintain a complete system inventory by adding all GPS data points to GIS system.
3.Advance long-range planning regarding plant capacity and expansion.
4.Monitor infiltration of ground water into the sanitary sewer system.
ISSUES:
1.The treatment plant is nearing capacity and alternatives are costly.
2.Ground water infiltration.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Collection
Sewer mains maintained (miles)16 26 12 20
Liftstations 7 7 7 7
Sewer main locates 1,820 1,619 1,341 2,000
Manholes maintained*389 828 225 390
New service hookups 85 43 47 100
Treatment
Screw press influent flow (gals)5,848,200 5,348,525 6,946,390 6,000,000
Thickened sludge (wet tons)2,231 2,132 2,308 2,300
Thickened sludge (dry tons)317 303 328 325
Dry ton % of wet ton 14.2% 14.2% 14.2% 14.1%
Raw influent flow (million gals)425 433 459 450
* Manholes are maintained by quadrants. Fewer manholes in one quadrant allows
more time for cleaning longer main sewer lines.
Full-Time Equivalents 3.75 3.55 3.55 3.45
182Table of Contents
BUDGET:
BUDGET COMMENTARY:
The Sewer Fund’s main source of revenue is user charges. Rates increase 2.5% for the base
charge and usage charges in 2025. 2022 experienced an unfavorable market value adjustment
in the city’s investment portfolio, resulting in negative miscellaneous revenues.
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
adjustment. The city renewed its contract with a third-party provider of wastewater treatment
plant management services for five years for 2023 - 2027. Capital outlays in 2025 include trunk
extensions/improvements on West County Road 39 and Fallon Avenue, and wastewater facility
roof repairs.
REMAINING DEBT SERVICE:
SEWER FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Intergovernmental Revenues 166,458$ 203,400$ -$ -$ 1,000,000$ ---
Charges for Services 3,729,466 4,267,431 3,173,344 3,737,657 3,329,143 4.9%
Special Assessments 28,298 20,866 - 71,171 16,000 ---
Miscellaneous (333,056) 602,672 29,656 675,343 249,857 742.5%
Contributed Capital 249,385 442,406 - 87,228 - ---
TOTAL REVENUES 3,840,551$ 5,536,775$ 3,203,000$ 4,571,399$ 4,595,000$ 43.5%
EXPENDITURES
Personnel Services 492,098$ 402,942$ 383,645$ 386,682$ 399,842$ 4.2%
Supplies 151,579 203,865 198,000 169,213 248,000 25.3%
Other Services & Charges 1,336,409 1,358,965 1,706,832 1,299,130 1,745,558 2.3%
Capital Outlay - - 700,000 - 5,142,000 634.6%
Debt Service 45,451 55,170 367,523 49,211 366,600 -0.3%
TOTAL EXPENDITURES 2,025,537$ 2,020,942$ 3,356,000$ 1,904,236$ 7,902,000$ 135.5%
FUND BALANCE - JANUARY 1 9,601,117$ 11,416,131$ 14,931,964$ 14,931,964$ 17,599,127$
Excess (Deficiency) of
Revenues over Expenditures 1,815,014 3,515,833 (153,000) 2,667,163 (3,307,000)
FUND BALANCE - DECEMBER 31 11,416,131$ 14,931,964$ 14,778,964$ 17,599,127$ 14,292,127$
Payable Principal Interest Rate Total
6/1/2025 -$ 14,300$ 14,300$
12/1/2025 215,000 14,300 3.00% 229,300
6/1/2026 - 11,075 11,075
12/1/2026 225,000 11,075 3.00% 236,075
6/1/2027 - 7,700 7,700
12/1/2027 230,000 7,700 3.20% 237,700
6/1/2028 - 4,020 4,020
12/1/2028 240,000 4,020 3.35% 244,020
Total 910,000$ 74,190$ 984,190$
GO Wastewater Treatment Bonds, Series 2013B
183Table of Contents
Payable Principal Interest Rate Total
2/20/2025 -$ 6,750$ 6,750$
8/20/2025 109,000 6,750 1.06% 115,750
2/20/2026 - 6,171 6,171
8/20/2026 111,000 6,171 1.06% 117,171
2/20/2027 - 5,581 5,581
8/20/2027 112,000 5,581 1.06% 117,581
2/20/2028 - 4,985 4,985
8/20/2028 113,000 4,985 1.06% 117,985
2/20/2029 - 4,385 4,385
8/20/2029 114,000 4,385 1.06% 118,385
2/20/2030 - 3,779 3,779
8/20/2030 115,000 3,779 1.06% 118,779
2/20/2031 - 3,168 3,168
8/20/2031 117,000 3,168 1.06% 120,168
2/20/2032 - 2,546 2,546
8/20/2032 118,000 2,546 1.06% 120,546
2/20/2033 - 1,919 1,919
8/20/2033 119,000 1,919 1.06% 120,919
2/20/2034 - 1,286 1,286
8/20/2034 120,000 1,286 1.06% 121,286
2/20/2035 - 648 648
8/20/2035 122,000 648 1.06% 122,648
Total 1,270,000$ 82,436$ 1,352,436$
MPFA-15-0004-R-FY16
184Table of Contents
CONTRACTED WASTEWATER TREATMENT PLANT SERVICES:
The city started directly paying for chemicals (polymer) outside of the contract payments in
2018. Electricity and gas charges were assumed by the city in 2016 and are not reported above
as a contract cost.
Year Service Change $ Change %
2016 582,360$ -$ 0.0%
2017 593,196$ 10,836$ 1.9%
2018 563,394$ (29,802)$ -5.0%
2019 577,476$ 14,082$ 2.5%
2020 591,913$ 14,437$ 2.5%
2021 606,714$ 14,801$ 2.5%
2022 621,714$ 15,000$ 2.5%
2023 643,648$ 21,934$ 3.5%
2024 666,176$ 22,528$ 3.5%
2025 689,496$ 23,320$ 3.5%
Schedule of Non-Reimbursables (O&M Services)
$-
$200
$400
$600
$800
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
20
2
5
Th
o
u
s
a
n
d
s
O&M Services Costs
Year R&M Polymer Hauling Landfill Total
2016 52,872$ 32,396$ 20,876$ 30,784$ 136,928$
2017 54,705 33,019 23,145 51,057 161,926
2018 61,020 - 39,249 67,654 167,923
2019 43,570 - 34,073 70,871 148,514
2020 56,583 - 28,842 67,993 153,418
2021 71,362 - 32,571 74,783 178,716
2022 62,704 - 35,966 79,681 178,351
2023 56,394 - 29,640 84,253 170,287
2024* 55,000 - 25,000 100,000 180,000
2025* 55,000 - 25,000 100,000 180,000
*Budgeted
Schedule of Reimbursable Costs
$-
$50,000
$100,000
$150,000
$200,000
2016 2017 2018 2019 2020 2021 2022 2023 2024*2025*
Reimbursable Costs
R&M Polymer Hauling Landfill
185Table of Contents
STORMWATER FUND (652-4948x)
DEPARTMENT: Public Works SUPERVISOR: Utilities Superintendent
ACTIVITY SCOPE:
The Stormwater Fund is a self-sustaining city utility fund with three divisions: stormwater
administration, stormwater operations and street sweeping. The streets and engineering
department manages the stormwater, which includes street sweeping, MS4 management,
storm sewer televising and cleaning, pond maintenance, and system enhancements.
OBJECTIVES:
1.Protect the city’s natural resources by minimizing the impacts of users on the
environment.
2.Monitor, repair, and clean stormwater trunk lines, laterals, structures, ditches,
holding ponds, and structural pollution control devices.
ISSUES:
1.Continued deterioration of storm water system, without proper funding for repairs,
replacement, or improvements.
2.Educating the public on storm water operations.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Stormwater main miles 73.8 74.5 76.5 77.0
Number of manholes 1,632 1,640 1,649 1,655
Number of ponds 112 112 112 112
Number of outfalls 29 29 29 29
Number of stormwater BMPs*50 52 53 53
*BMPs = structural best management practices (ie. Sumped manhole, infiltration basin)
Full-Time Equivalents 1.40 1.55 1.55 1.55
186Table of Contents
BUDGET:
BUDGET COMMENTARY:
The Stormwater Fund’s main source of revenue is user charges in the form of a stormwater fee,
which is based on 1 drainage unit per residence and 7 drainage units per impervious acre for
non-residential properties. 2022 experienced an unfavorable market value adjustment in the
city’s investment portfolio, resulting in negative miscellaneous revenues. Contributed capital is
from development access and trunk charges. Due to the unknown nature of development,
these revenues are budgeted conservatively.
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
adjustment. Other services & charges include engineering fees and licenses & permits. Capital
outlays consist of improvements to Ditch 33 to the east of the city, expansion of the
stormwater pond near Otter Creek business park, and trunk line oversizing along Fallon Avenue
and 85th Street.
STORMWATER FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Intergovernmental Revenues 54,917$ 60,750$ 1,330,000$ 60,750$ 1,485,000$ 11.7%
Charges for Services 522,851 605,240 595,000 663,057 662,791 11.4%
Special Assessments 7,821 6,367 - 20,539 5,000 ---
Miscellaneous (53,720) 114,598 7,000 128,631 50,209 617.3%
Contributed Capital 178,302 228,143 60,000 157,689 - -100.0%
TOTAL REVENUES 710,171$ 1,015,098$ 1,992,000$ 1,030,666$ 2,203,000$ 10.6%
EXPENDITURES
Personnel Services 253,931$ 181,220$ 167,950$ 176,278$ 172,183$ 2.5%
Supplies 2,089 15,198 21,000 22,495 19,000 -9.5%
Other Services & Charges 74,633 7,284 395,050 13,762 379,817 -3.9%
Capital Outlay - - 2,015,000 - 2,585,000 28.3%
TOTAL EXPENDITURES 330,653$ 203,702$ 2,599,000$ 212,535$ 3,156,000$ 21.4%
FUND BALANCE - JANUARY 1 2,800,863$ 3,180,381$ 3,991,777$ 3,991,777$ 4,809,908$
Excess (Deficiency) of
Revenues over Expenditures 379,518 811,396 (607,000) 818,131 (953,000)
FUND BALANCE - DECEMBER 31 3,180,381$ 3,991,777$ 3,384,777$ 4,809,908$ 3,856,908$
187Table of Contents
LIQUOR FUND (609-4975x)
DEPARTMENT: Liquor Fund SUPERVISOR: Liquor Store Manager
ACTIVITY SCOPE:
The Liquor Fund provides customers a place to purchase alcohol and other related products
safely and responsibly. Profits from store operations are used to support other city funds and
activities.
OBJECTIVES:
1.Promote and control the safe and responsible sale of alcohol.
2.Match product selection to changes in demand.
3.Enhance alcohol training program for all liquor store employees.
4.Elevate store attractiveness through customer focused improvements.
5.Boost sales to existing customers.
6.Increase sales per transaction.
7.Improve gross profit margin [1 – (cost/price)].
8.Grow customer base and sales by aggressively marketing the store.
ISSUES:
1.Staff turnover.
2.Proposed legislative action to allow liquor sales in retail stores, thereby causing
more competition.
3.Limited physical space of the store.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Gross profit 1,912,345$ 1,868,567$ 1,682,824$ 2,036,428$
Gross profit % of sales 27% 27% 26% 27%
Sales per square foot $815 $800 $737 $837
Total number of sales 249,604 240,982 221,133 240,000
Staff hours worked 21,571 21,334 21,829 21,750
Sales per hour worked 11.6 11.3 10.1 11.0
Average sale (including tax)$31.58 $32.15 $32.22 $32.96
Full-Time Equivalents 10.37 10.26 10.49 10.46
188Table of Contents
BUDGET:
BUDGET COMMENTARY:
Hi-Way Liquors is a profitable city enterprise fund, with excess cash directed toward capital
projects or other needs. Revenues are generated by the sale of alcoholic beverages and liquor-
industry related merchandise. 2022 experienced an unfavorable market value adjustment in
the city’s investment portfolio, resulting in negative miscellaneous revenues.
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
adjustment. The 2023-2025 actual and budgeted operating transfers out are to capital projects
funds, most notably for the Downtown Pedestrian & Roadways Improvements Project in 2023
and 2024. Sales fell 8% in 2024 which can be attributed to construction in the downtown
impacting foot traffic as well as changing trends in the liquor industry.
LIQUOR FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Sale of Goods 7,168,374$ 7,042,543$ 7,504,849$ 6,481,607$ 7,366,428$ -1.8%
Miscellaneous (76,557) 81,973 12,151 74,422 74,572 513.7%
TOTAL REVENUES 7,091,817$ 7,124,516$ 7,517,000$ 6,556,029$ 7,441,000$ -1.0%
EXPENDITURES
Personnel Services 777,314$ 832,330$ 890,834$ 873,053$ 983,503$ 10.4%
Supplies 5,246,183 5,179,601 5,522,540 4,797,888 5,342,000 -3.3%
Other Services & Charges 269,636 296,594 333,626 269,076 340,497 2.1%
Operating Transfers Out - 2,250,000 1,000,000 1,000,000 500,000 -50.0%
TOTAL EXPENDITURES 6,293,133$ 8,558,525$ 7,747,000$ 6,940,017$ 7,166,000$ -7.5%
FUND BALANCE - JANUARY 1 2,032,400$ 2,831,084$ 1,397,075$ 1,397,075$ 1,013,087$
Excess (Deficiency) of
Revenues over Expenditures 798,684 (1,434,009) (230,000) (383,988) 275,000
FUND BALANCE - DECEMBER 31 2,831,084$ 1,397,075$ 1,167,075$ 1,013,087$ 1,288,087$
189Table of Contents
DEPUTY REGISTRAR FUND (653-41990)
DEPARTMENT: Deputy Registrar (DMV) SUPERVISOR: DMV Manager
ACTIVITY SCOPE:
The Deputy Registrar (Department of Motor Vehicles, or DMV) is a city-based service entity,
which assists customers with the purchase of vehicle license plates/tabs, DNR licenses, and
other licenses as required by Minnesota state agencies. The Monticello DMV is one of four
limited driver’s license agents in Wright County. A limited agent can process change-of-address
and lost license applications for driver’s licenses but cannot process routine license renewals.
Furthermore, the DMV facility leases space to FiberNet operations, the Community Center, and
the Monticello Chamber of Commerce.
OBJECTIVES:
1.Perform DMV services to the public and dealerships with excellent customer service
in a convenient location.
2.Update employee training and certifications.
ISSUES:
1.Frequent and uncontrollable changes to state licensing regulations.
2.Competition with other customer options: other DMVs, on-line, and mail-in.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
License Revenue $882,432 $944,931 $1,149,199 $1,100,000
Revenue per staff hour $58.46 $64.55 $77.56 $70.06
Net revenue per staff hour $16.28 $20.91 $31.26 $24.84
Efficiency:
Transactions per hour 6.0 6.2 6.2 5.9
Work Load:
Total transactions 91,078 90,410 92,050 92,300
77,515 77,870 79,759 80,000
DNR transactions 9,984 8,950 8,058 8,000
Game & Fish transactions 245 264 209 250
Driver's license transactions 3,334 3,326 4,024 4,050
Staff hours 15,094 14,639 14,816 15,700
Dealerships served 47 74 77 78
Full-Time Equivalents 7.26 7.04 7.12 7.55
Motor vehicle transactions*
190Table of Contents
BUDGET:
BUDGET COMMENTARY:
The main revenue source for the DMV is the fees charged for the issuance of various licenses.
2022 experienced an unfavorable market value adjustment in the city’s investment portfolio,
resulting in negative miscellaneous revenues. Contributed capital in 2023 reflects the formal
recording of the transition from the old DMV building to the new one.
The 2025 personnel services budget includes a full step increase and a 3.5% market rate wage
adjustment. The 2023 operating transfers out was to the Capital Projects funds for the
Downtown Pedestrian & Roadways Improvements project. The 2024 and budgeted 2025
transfer out is to the Community Center Fund to support its operations.
DEPUTY REGISTRAR FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 883,451$ 945,987$ 900,000$ 1,151,908$ 1,100,750$ 22.3%
Miscellaneous (64,511) 168,655 18,000 62,383 33,250 84.7%
Contributed Capital - 385,689 - - - ---
TOTAL REVENUES 818,940$ 1,500,331$ 918,000$ 1,214,291$ 1,134,000$ 23.5%
EXPENDITURES
Personnel Services 666,064$ 541,965$ 689,844$ 586,817$ 710,352$ 3.0%
Supplies 7,807 8,004 11,000 9,865 8,500 -22.7%
Other Services & Charges 82,390 84,567 84,156 89,358 91,148 8.3%
Capital Outlay - 22,284 110,000 - - -100.0%
Operating Transfers Out - 1,750,000 100,000 100,000 502,000 402.0%
TOTAL EXPENDITURES 756,261$ 2,406,820$ 995,000$ 786,040$ 1,312,000$ 31.9%
FUND BALANCE - JANUARY 1 2,195,481$ 2,258,160$ 1,351,671$ 1,351,671$ 1,779,922$
Excess (Deficiency) of
Revenues over Expenditures 62,679 (906,489) (77,000) 428,251 (178,000)
FUND BALANCE - DECEMBER 31 2,258,160$ 1,351,671$ 1,274,671$ 1,779,922$ 1,601,922$
191Table of Contents
FIBER OPTICS FUND (656-4987x)
DEPARTMENT: Fiber Optics Fund SUPERVISOR: City Administrator/Finance Director
ACTIVITY SCOPE:
The Fiber Optics Fund is a self-sustaining enterprise fund. Fiber Optics delivers internet, phone,
and cable television services to customers within the city. Residential and commercial
customers can subscribe to individual or bundled services.
OBJECTIVES:
1.Offer a variety of internet speeds and cable packages to customers.
2.Increase subscribers and subscriptions.
ISSUES:
1.Industry trends (cord cutting, etc.) and competition from other service providers.
2.Various legal aspects of operating a telecommunication business.
MEASURABLE WORKLOAD DATA:
BUDGET:
Measurement 2022 2023 2024 2025
Internet subscibers 1,752 1,701 1,697 1,700
Phone subscribers 275 248 229 225
Cable TV subscribers 256 233 218 215
Full-Time Equivalents 0.00 0.00 0.00 0.00
FIBER OPTICS FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Franchise & Other Taxes 53,000$ 20,587$ -$ -$ -$ ---
Charges for Services 1,978,590 1,928,497 1,988,600 1,943,059 1,897,775 -4.6%
Miscellaneous 179,502 77,337 11,400 164,686 50,225 340.6%
TOTAL REVENUES 2,211,092$ 2,026,421$ 2,000,000$ 2,107,745$ 1,948,000$ -2.6%
EXPENDITURES
Personnel Services -$ -$ 6,275$ -$ 6,275$ 0.0%
Supplies 87,515 86,547 100,000 116,323 100,000 0.0%
Other Services & Charges 1,533,673 1,460,391 1,576,725 1,522,414 1,624,725 3.0%
Capital Outlay - - 200,000 - 250,000 25.0%
TOTAL EXPENDITURES 1,621,188$ 1,546,938$ 1,883,000$ 1,638,737$ 1,981,000$ 5.2%
FUND BALANCE - JANUARY 1 698,071$ 1,287,975$ 1,767,458$ 1,767,458$ 2,236,466$
Excess (Deficiency) of
Revenues over Expenditures 589,904 479,483 117,000 469,008 (33,000)
FUND BALANCE - DECEMBER 31 1,287,975$ 1,767,458$ 1,884,458$ 2,236,466$ 2,203,466$
192Table of Contents
BUDGET COMMENTARY:
Revenues in the Fiber Optics Fund come from charges to subscribers, and expenditures are
incurred in operating the system, which is outsources operations to a third party. The 2025
budget includes $250,000 in capital outlay for system extensions to new service areas
associated with new developments within city limits.
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194Table of Contents
Internal Service Funds
2025 Adopted Budget
INTERNAL SERVICE FUNDS - SUMMARY
DESCRIPTION
Internal service funds are a proprietary fund type that may be used to report any activity that
provides goods or services to other funds, departments, or agencies of the primary government
and its component units, or to other governments, on a cost-reimbursement basis. Internal
service funds use an accrual basis of accounting for financial reporting purposes. A modified
accrual basis is used for budgeting purposes in this report. Consequently, the bottom line for
each fund is labeled fund balance rather than net position, which includes capital assets, long-
term debt, and other noncurrent items. Fund balance in an internal service fund is roughly the
same as working capital. The city currently has four active internal service funds: Facilities
Maintenance, IT Services, Central Equipment, and Benefit Accrual.
BUDGET SUMMARY
TOTAL INTERNAL SERVICE FUNDS 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 1,428,552$ 1,612,358$ 1,514,494$ 1,540,669$ 1,893,900$ 25.1%
Miscellaneous (14,227) 257,255 70,006 85,614 70,000 0.0%
Contributed Capital 33,529 117,466 10,500 60,810 10,100 -3.8%
Operating Transfers In 150,000 - - 500,000 - ---
TOTAL REVENUES 1,597,854$ 1,987,079$ 1,595,000$ 2,187,093$ 1,974,000$ 23.8%
EXPENDITURES
Personnel Services 237,256$ 267,205$ 267,681$ 370,096$ 399,330$ 49.2%
Supplies 106,065 81,530 79,365 104,207 76,166 -4.0%
Other Services & Charges 658,293 673,735 635,174 943,101 811,224 27.7%
Capital Outlay - 18 316,780 36 667,280 110.6%
Debt Service 5,151 4,047 63,000 2,854 - -100.0%
TOTAL EXPENDITURES 1,006,765$ 1,026,535$ 1,362,000$ 1,420,294$ 1,954,000$ 43.5%
FUND BALANCE - JANUARY 1 3,750,039$ 4,341,128$ 5,301,672$ 5,301,672$ 6,068,471$
Excess (Deficiency) of
Revenues over Expenditures 591,089 960,544 233,000 766,799 20,000
FUND BALANCE - DECEMBER 31 4,341,128$ 5,301,672$ 5,534,672$ 6,068,471$ 6,088,471$
195Table of Contents
FACILITIES MAINTENANCE FUND (701-00000)
DEPARTMENT: Public Works
SUPERVISOR: Facilities Maintenance Manager
ACTIVITY SCOPE:
The Facilities Maintenance Fund is a self-sustaining internal service fund. The Public Works
Director oversees a Facilities Maintenance Manager who manages the city’s various facilities.
The fund’s revenues are derived from service charges to the budget unit of each facility that
receives services. Service charges are adjusted annually to cover all operating maintenance
costs.
OBJECTIVES:
1.Centralize and standardize management of city facilities.
2.Provide cost savings by coordinating similar costs across city buildings.
3.Provide financial management stability to each budget unit.
ISSUES:
1.Appropriate costs distribution.
2.Coordination of service delivery to multiple departments and budget units.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Buildings maintained 21 21 31 31
R&M orders 799 509 809 800
R&M order hours 474 117 152 150
Hours per R&M service order 0.6 0.2 0.2 0.2
Total R&M service order costs $307,638 $286,374 $437,327 $350,000
R&M service cost per order $385.03 $562.62 $540.58 $437.50
Note: The Facilities Maintenance department was created in 3rd quarter 2021.
Full-Time Equivalents 1.10 1.10 1.10 2.00
196Table of Contents
BUDGET:
BUDGET COMMENTARY:
The Facilities Maintenance Fund’s main source of revenue is internal user charges, and the fund
accounts for all activity supporting the city’s facilities, including the Community Center/City
Hall, Public Works facility, Fire station, Hi-Way Liquors store, the DMV, Facilities maintenance
office, animal control facility, library, and others. Transfers in from the General Fund in 2022
and 2024 helped the fund stabilize its fund balance. Revenues and expenditures were both over
budget in 2023 due to repair costs for a vehicle crashing into a community center entrance,
which was offset by insurance proceeds.
Expenditures were over budget in 2024 due repairs to the Walnut Street entrance of the
Community Center as well as the transition of various items that operated differently from how
the budget was created. For example, only 10% of a second staff member was allocated to the
Facilities Maintenance Fund in the 2024 budget; however, during the year the Maintenance
Supervisor at the Community Center facility (previously accounted for in the Community Center
special revenue fund) was transitioned to the Facilities Maintenance department so almost 2
FTE were actually recorded in personnel services. As the balance of work between the Facilities
Maintenance Manager and the staff at each city facility is determined, the fund will see more
stable year-to-year budgets and actual amounts.
FACILITIES MAINTENANCE 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 419,827$ 423,592$ 385,000$ 385,000$ 650,000$ 68.8%
Miscellaneous 53,656 165,966 50,000 14,011 50,000 0.0%
Operating Transfers In 150,000 - - 500,000 - ---
TOTAL REVENUES 623,483$ 589,558$ 435,000$ 899,011$ 700,000$ 60.9%
EXPENDITURES
Personnel Services 131,377$ 135,968$ 144,267$ 221,015$ 264,077$ 83.0%
Supplies 65,188 53,117 52,000 70,566 49,000 -5.8%
Other Services & Charges 357,157 340,103 238,733 584,010 386,923 62.1%
TOTAL EXPENDITURES 553,722$ 529,188$ 435,000$ 875,591$ 700,000$ 60.9%
FUND BALANCE - JANUARY 1 (33,854)$ 35,907$ 96,277$ 96,277$ 119,697$
Excess (Deficiency) of
Revenues over Expenditures 69,761 60,370 - 23,420 -
FUND BALANCE - DECEMBER 31 35,907$ 96,277$ 96,277$ 119,697$ 119,697$
197Table of Contents
IT SERVICES FUND (702-00000)
DEPARTMENT: Information Technology
SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The IT (Information Technology) Services Fund is a self-sustaining internal service fund. The IT
Technician manages the network of servers and peripheral equipment to provide continuity
and accountability for IT related services. The fund’s revenues are derived from service charges
to each budget unit receiving IT services. Service charges are adjusted annually to cover all
current costs plus a portion of capital outlays.
OBJECTIVES:
1.Centralize management of IT services and resources into one department.
2.Provide financial management stability to each budget unit by distributing capital costs
over multiple periods.
ISSUES:
1.Appropriate costs distribution.
2.Coordination of service delivery to multiple departments and budget units.
3.Increasing threats to cyber security.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Work Load:
Number of users 109 109 140 141
Number of computers & phones 207 207 209 210
Number of back-end support
network devices 62 62 64 64
Network availability (estimate)99% 99% 99% 99%
Full-Time Equivalents 1.00 1.00 1.00 1.00
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BUDGET:
BUDGET COMMENTARY:
The IT Services Fund’s main source of revenue is internal user charges. The IT Services Fund
accounts for all activity supporting the city’s information technology infrastructure, including
servers, routers, personal computers (PCs), printers, copiers, phones, and professional services.
A desire to account for all departments’ IT-related purchases, managed by the IT Technician,
through this internal service fund led to an increased budget over the past few years.
IT SERVICES 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 421,000$ 529,009$ 549,994$ 550,263$ 584,000$ 6.2%
Miscellaneous (4,529) 14,536 10,006 11,834 10,000 -0.1%
TOTAL REVENUES 416,471$ 543,545$ 560,000$ 562,097$ 594,000$ 6.1%
EXPENDITURES
Personnel Services 96,554$ 104,480$ 111,414$ 111,175$ 120,253$ 7.9%
Supplies 40,877 28,413 27,365 33,641 27,166 -0.7%
Other Services & Charges 301,136 333,632 396,441 359,091 424,301 7.0%
Capital Outlay - 18 24,780 36 22,280 -10.1%
TOTAL EXPENDITURES 438,567$ 466,543$ 560,000$ 503,943$ 594,000$ 6.1%
FUND BALANCE - JANUARY 1 260,444$ 238,348$ 315,350$ 315,350$ 373,504$
Excess (Deficiency) of
Revenues over Expenditures (22,096) 77,002 - 58,154 -
FUND BALANCE - DECEMBER 31 238,348$ 315,350$ 315,350$ 373,504$ 373,504$
199Table of Contents
CENTRAL EQUIPMENT FUND (703-00000)
DEPARTMENT: Public Works
SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The Central Equipment Fund is a self-sustaining internal service fund. The finance department
participates along with various department directors and division leaders in the acquisition of
capital assets. The acquired capital asset is charged back against the benefitting budget unit
through rental charges over a set number of years. The rental charge reflects depreciation plus
inflation. Service charges for each asset are fixed for the duration of rental payments.
OBJECTIVES:
1.Maintain a reliable inventory of equipment for staff use in providing city services.
2.Provide financial management stability to each budget unit by distributing capital costs
over multiple annual reporting periods
ISSUES:
1.Appropriate cost distribution over multiple accounting periods.
2.Efficient coordination of asset replacement activities between departments.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiveness:
Annual cost recovery 578,400$ 633,000$ 567,500$ 644,900$
Total costs of assets acquired 521,962$ 1,080,599$ 718,317$ 645,000$
Efficiency:
Cost recovery as % of
acquired assets 111% 59% 79% 100%
Work Load:
Number of fund assets 60 74 83 89
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BUDGET:
BUDGET COMMENTARY:
The Central Equipment Fund’s main source of revenue is internal rental charges. The city
issued $515,000 in G.O. bonds in 2014 to finance the acquisition of a fire tender and a plow
truck; these bonds were fully paid off in 2024.
The 2025 budgeted equipment acquisitions: [public works equipment] hydraulic snow blower -
$80,000; front loader - $190,000; paver trailer - $45,000; [recreation equipment] line painter -
$65,000; truck replacements (2) - $165,000; [public safety equipment] utility 11 & ATV -
$100,000.
CENTRAL EQUIPMENT FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 578,400$ 633,000$ 567,500$ 567,500$ 644,900$ 13.6%
Miscellaneous (51,468) 62,023 10,000 42,470 10,000 0.0%
Contributed Capital 33,529 117,466 10,500 60,810 10,100 -3.8%
TOTAL REVENUES 560,461$ 812,489$ 588,000$ 670,780$ 665,000$ 13.1%
EXPENDITURES
Capital Outlay -$ -$ 292,000$ -$ 645,000$ 120.9%
Debt Service 5,151 4,047 63,000 2,854 - -100.0%
TOTAL EXPENDITURES 5,151$ 4,047$ 355,000$ 2,854$ 645,000$ 81.7%
FUND BALANCE - JANUARY 1 3,170,333$ 3,725,643$ 4,534,085$ 4,534,085$ 5,202,011$
Excess (Deficiency) of
Revenues over Expenditures 555,310 808,442 233,000 667,926 20,000
FUND BALANCE - DECEMBER 31 3,725,643$ 4,534,085$ 4,767,085$ 5,202,011$ 5,222,011$
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BENEFIT ACCRUAL FUND (704-00000)
DEPARTMENT: Finance
SUPERVISOR: Finance Director
ACTIVITY SCOPE:
The Benefit Accrual Fund is a self-sustaining internal service fund. The finance department,
supervisors and the human resources manager oversee vacation, sick leave, and paid-time-off
(PTO) benefits. The non-enterprise fund liability for this benefit is recorded in the Benefit
Accrual Fund. Enterprise funds maintain the liability for employees involved in enterprise
operations. Expenditures in each governmental fund budget unit are adjusted annually to
reflect changes to the liability caused by the employees of that budget unit.
OBJECTIVES:
1.Provide mechanism for recording and funding governmental fund liabilities for paid
leaves.
2.Provide financial management stability to each budget unit.
ISSUES:
1.Increasing cost of paid leave benefits.
MEASURABLE WORKLOAD DATA:
Measurement 2022 2023 2024 2025
Outcome/Effectiv eness:
Annual hours accrued:
PTO 10,373 11,057 11,929 12,000
Comp Time 1,246 810 674 750
Vacation & Sick Leave 272 272 - -
Emergency Sick & Safe Time - - 2,311 2,500
Balance of accrued hours:
PTO 9,320 10,033 9,364 9,500
Comp Time 768 434 200 200
Vacation & Sick Leave 689 378 - -
Emergency Sick & Safe Time - - 1,798 3,500
Efficiency:
Annual hours accrued per employee:
PTO 176 191 196 194
Comp Time 34 23 18 20
Vacation & Sick Leave 272 272 - -
Emergency Sick & Safe Time - - 8 9
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BUDGET:
BUDGET COMMENTARY:
The Benefit Accrual Fund’s main source of revenue is internal charges to personnel services in
the General Fund, Monticello Community Center Fund, and Economic Development Authority
Fund. Personnel services expenditures in each governmental fund budget unit will be adjusted
up or down based on the change in liability caused by each unit. The liability is based on the
number of hours accrued multiplied by the hourly compensation for each employee.
In 2024, the city’s personnel policy was updated to transition one final employee from the
vacation and sick leave benefits to the paid time off (PTO) benefit. Also changing in 2024 is the
payout of accrued compensatory (comp) time with the final paycheck of the year. However, the
union’s bargaining agreement is not up for renewal until 2026, so union employees can
continue to rollover unused compensatory time. All employees can carry over up to 320 hours
of accrued PTO. Finally, the State of Minnesota implemented mandatory Emergency Sick & Safe
Time, including part-time and seasonal staff, which is now included in the balance of hours
reflected in the accrued liability.
Measurement 2022 2023 2024 2025
Work Load:
Employees accruing hours:
PTO employees 59 58 61 62
Full-time hourly employees 37 35 37 38
Vacation & Sick Leave
employees (pre-1990)1 1 - -
Emergency Sick & Safe Time - - 275 275
Starting in 2024:
1. Unused Comp Time will be paid out before year end for non-union employees.
2. The State of Minnesota implemented Emergency Sick & Safe Time for all
employees working more than 80 hours per year.
3. The employee previously on the vacation & sick leave plan was transtioned to PTO.
BENEFIT ACCRUAL FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Charges for Services 9,325$ 26,757$ 12,000$ 37,906$ 15,000$ 25.0%
Miscellaneous (11,886) 14,730 - 17,299 - ---
TOTAL REVENUES (2,561)$ 41,487$ 12,000$ 55,205$ 15,000$ 25.0%
EXPENDITURES
Personnel Services 9,325$ 26,757$ 12,000$ 37,906$ 15,000$ 25.0%
TOTAL EXPENDITURES 9,325$ 26,757$ 12,000$ 37,906$ 15,000$ 25.0%
FUND BALANCE - JANUARY 1 353,116$ 341,230$ 355,960$ 355,960$ 373,259$
Excess (Deficiency) of
Revenues over Expenditures (11,886) 14,730 - 17,299 -
FUND BALANCE - DECEMBER 31 341,230$ 355,960$ 355,960$ 373,259$ 373,259$
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Discrete Component Unit Fund
2025 Adopted Budget
DISCRETELY PRESENTED COMPONENT UNIT FUND - SUMMARY
DESCRIPTION
The city currently has one discretely presented component unit fund. Component units are
legally separate entities for which the city (primary government) is financially accountable, or
for which the exclusion of the component unit would render the financial statements of the
primary government misleading. Criteria used to determine if the primary government is
financially accountable for a component unit includes whether or not the primary government:
•appoints the voting majority of the potential component unit’s governing body
•is able to impose its will on the potential component unit
•is in a relationship of financial benefit or burden with the potential component unit, or
•is fiscally depended upon by the potential component unit
The Monticello Economic Development Authority (EDA) is a legally separate entity created
pursuant to Minnesota Statutes § 469.090 through § 469.108 to carry out economic and
industrial development and redevelopment within the city in accordance with policies
established by the City Council. The seven-member board consists of two councilmembers and
five members from the community appointed by the City Council. Management of the city has
complete operational responsibility of the EDA’s activities, and the City Council reviews and
approves the tax levy and all expenditures for the EDA.
Because the council does not make up a majority of the EDA board and there is no financial
burden or benefit relationship between the city and EDA, the EDA is reported as a discretely
presented component unit of the city. The EDA discretely presented component unit fund uses
the modified accrual basis of accounting for both financial reporting and budgeting purposes.
205Table of Contents
ECONOMIC DEVELOPMENT AUTHORITY FUND (213-46301)
DEPARTMENT: Economic Development SUPERVISOR: Economic Development Manager
ACTIVITY SCOPE:
The Monticello Economic Development Authority (EDA) is responsible for the on-going
redevelopment efforts within the city. This consists of housing and businesses, including all
related public improvements and land acquisitions. These programs are administered, based
on direction of the EDA board, by the Economic Development Manager. In addition, all tax
increment financing (TIF) districts are initiated and administered by the EDA.
There are currently 6 active TIF districts and 5 decertified, active districts. 3 additional TIF
districts have been authorized by the EDA Board and certified to the Office of the State Auditor
(OSA) but have not started receiving increment.
The EDA also administers loans to city businesses, based on local, state, and federal criteria.
Businesses who will generate higher paying jobs in the community are prime candidates for
these loans.
OBJECTIVES:
1.Attract new businesses to Monticello, including medical manufacturing, food-related,
and data center facilities.
2.Support existing businesses through training/education programs or assisting with
expansion or relocation efforts within the city.
3.Implement short, intermediate, and long-term objectives outlined in the TIF Analysis
and Management Plan and the Embracing Downtown Plan.
4.Acquire land that makes sense for redevelopment purposes.
5.Utilize JobZ Bill to initiate private development/redevelopment.
6.Work with community development department and developers to create upper-end
housing in Monticello.
7.Explore options to generate additional electrical supply to industrial areas.
8.Explore options to relocate electrical substation from Cargill's downtown site to create
expansion opportunities.
9.Implement recommendations from consultants regarding uses of funds available,
especially in TIF District 1-22.
10.Implement monitoring/tracking methods for EDA programs.
ISSUES:
1.Consistent administration of city and EDA policies, plans, ordinances, guidelines,
statutes, etc.
2.Need for higher wage jobs in the community.
3.Need for a variety of housing throughout the community.
4.Patience for plans to come to fruition.
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MEASURABLE WORKLOAD DATA:
BUDGET:
BUDGET COMMENTARY:
Under Section 469.033, subd. 6, of the HRA Act, the HRA’s special benefit tax is levied annually
and is limited to 0.0185% of the taxable market value. The main revenue sources are property
taxes and tax increments from the various TIF districts. One district decertified in 2022 and
two more decertified in 2023. Intergovernmental revenues reflect Minnesota Investment
Measurement 2022 2023 2024 2025
Properties acquired 1 3 1 0
Properties sold 11 0 0 5
GMEF loans outstanding 3 3 4 4
GMEF loans originated 0 0 2 1
Façade loans originated 2 0 2 2
Façade loans outstanding 0 0 2 2
Misc. other ED subsidy
loans/grant originated 3 0 3 3
Misc. other ED subsidy
loans/grant outstanding 2 0 5 5
TIF Districts newly created 5 0 0 1
Active TIF districts 8 11 9 10
Full-Time Equivalents 1.50 1.60 1.60 2.00
ECONOMIC DEVELOPMENT AUTHORITY FUND 2022 2023 2024 2024 2025 %
REVENUES ACTUAL ACTUAL BUDGET THRU 12/31 BUDGET CHANGE
Property Taxes 387,486$ 401,739$ 451,000$ 459,556$ 499,000$ 10.6%
Tax Increments 720,301 550,598 258,000 266,105 361,000 39.9%
Franchise & Other Taxes 805 68 - 787 - ---
Intergovernmental Revenues 375,547 344,993 - 294,248 - ---
Charges for Services 139,673 1,281 - 19,246 - ---
Miscellaneous 718,442 244,166 50,000 206,497 30,000 -40.0%
Operating Transfers In 4,900 3,950 6,000 5,114 6,000 0.0%
TOTAL REVENUES 2,347,154$ 1,546,795$ 765,000$ 1,251,553$ 896,000$ 17.1%
EXPENDITURES
Personnel Services 171,262$ 186,788$ 197,158$ 220,169$ 228,462$ 15.9%
Supplies 374 35 400 - 500 25.0%
Other Services & Charges 1,825,852 994,617 329,451 1,327,546 178,436 -45.8%
Capital Outlay 273,769 98,775 268,991 99,779 349,602 30.0%
Operating Transfers Out 197,925 - - - - ---
TOTAL EXPENDITURES 2,469,182$ 1,280,215$ 796,000$ 1,647,494$ 757,000$ -4.9%
FUND BALANCE - JANUARY 1 7,008,092$ 6,886,064$ 7,152,644$ 7,152,644$ 6,756,703$
Excess (Deficiency) of
Revenues over Expenditures (122,028) 266,580 (31,000) (395,941) 139,000
FUND BALANCE - DECEMBER 31 6,886,064$ 7,152,644$ 7,121,644$ 6,756,703$ 6,895,703$
207Table of Contents
Fund (MIF) grants passed through from the state to private developers. The increase in
miscellaneous revenues in 2022 is related to a land sale.
Expenditures include administrative costs, pay-as-you-go payments to various development
projects, and a transfer to debt service funds for 2011A bond payment, which was paid off in
2022. Other services & charges in 2022 reflect use of pooled TIF for a land sale to a private
developer associated with one of the new TIF districts that was certified in 2023, which will
start generating increment in 2025.
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Appendix
2025 Adopted Budget
COMMUNITY, DEMOGRAPHIC, AND STATISTICAL INFORMATION
Classified as a 501(a) entity under the Internal Revenue Code, the city of Monticello was
organized as a municipality in 1856. Monticello is located approximately 45 miles northwest of
the Minneapolis-St. Paul metropolitan area along the I-94 corridor in Wright County. The 2020
U. S. Census estimated Monticello's population at 14,455, and the city encompasses an area of
8.87 square miles. The city operates under a statutory form of government. The mayor and four
councilmembers (together known as "City Council") govern the city. The councilmembers are
each elected to staggered, four-year terms and the mayor a two-year term. The mayor presides
over and is a voting member of the City Council. The mayor is the chief authority for
administering city government and appoints department heads, various board members and
commission members. The City Council is the legislative body and meets twice per month. The
City Council's main responsibilities are guiding the growth and development of the City using
the Monticello 2040: Vision + Comprehensive Plan, appropriating funds, setting salaries,
adopting ordinances and resolutions, and approving the budget.
Monticello has a varied business community with a healthy mix of retail and manufacturing.
City unemployment rates are similar to, or below, that of the state.
Home to one of the two nuclear electric generation plants in Minnesota, Monticello’s second
largest employer is Xcel Energy, not far behind the Monticello School District. Regional medical
provider CentraCare and Agri-giant Cargill also maintain a strong presence in the city.
Average Employment
Year Wright County Wright County State of Minnesota
2015 38,855 3.8%3.6%
2016 69,254 4.3%4.0%
2017 71,796 3.5%3.1%
2018 72,455 3.4%3.2%
2019 73,088 3.8%3.5%
2020 69,972 4.4%4.4%
2021 72,474 2.7%3.0%
2022 75,573 3.2%2.5%
2023 74,438 2.8%2.6%
2024 74,406 2.9%2.7%
HISTORICAL EMPLOYMENT/UNEMPLOYMENT DATA
(Rates are not compiled for individual communities within counties)
Average Unemployment
Employer Employees
ISD No. 882 (Monticello)684
Xcel Energy (Northern States)650
CentraCare Health - Monticello 577
Cargill Kitchen Sol. (Sunny Fresh)425
Target 307
Walmart Supercenter 225
Ultra Machining Corporation 215
City of Monticello 176
Home Depot 157
WSI Industries 120
TOP TEN CITY EMPLOYERS
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Monticello’s population and households are roughly 0.25% of the state’s total for both
measures. With Target, Walmart, Home Depot, Runnings, and Mills Fleet Farm, it is no surprise
that retail sales per person are higher than the state average. The following table contains
selected facts about the city:
The nuclear plant accounts for approximately 37% of the city’s net tax capacity for taxes
payable in 2025. Xcel’s tax capacity and the council’s conservative tax levy philosophy are the
main reasons the city tax capacity rate is the fourth lowest in Wright County. An increase in the
residential market value homestead credit (reducing taxable market value of residential
properties) and a decrease to Xcel’s electric generating plant offset by new growth and
significant increases in commercial and apartment properties contributed to a projected 1.4%
tax base increase. With an 8.0% levy increase, the 2025 tax rate is projected to increase. The
overall tax base is about one-third residential and two-thirds commercial (including the electric
generating plant).
People QuickFacts Monticello Minnesota
Population, 2024 estimate July 1 14,840 5,793,151
Population, Census, April 1, 2020 14,455 5,706,494
Population, percent change, April 1, 2020 to July 1, 2024 2.7% 1.5%
Persons under 5 years, percent 6.9% 5.7%
Persons under 18 years, percent 26.5% 22.7%
Persons 65 years and over, percent 9.8% 17.8%
Female persons, percent 51.2% 49.9%
White persons, percent 85.6% 82.3%
Hispanic or Latino, percent 6.9% 6.5%
Homeownership rate, 2019-2023 64.9% 72.4%
Median value of owner-occupied housing units, 2019-2023 $298,400 $305,500
Households, 2019-2023 5,477 2,282,967
Persons per household, 2019-2023 2.64 2.44
Retail sales per capita, 2022 $49,852 $23,565
Median household income, 2019-2023 $81,563 $87,556
Population per square mile, 2020 1,629.8 71.7
Land area in square miles, 2020 8.87 79,626.68
2022 2023 2024 2025 2024-25 2024-25
City Tax Rate Tax Rate Tax Rate Tax Rate Change Change %
City of Otsego 34.545 29.572 23.109 25.190 2.081 8.3%
City of St. Michael 33.909 27.132 25.715 26.768 1.053 3.9%
City of Dayton 47.733 35.109 35.653 37.266 1.613 4.3%
City of Monticello 36.536 34.991 34.547 37.684 3.137 8.3%
City of Hanover 43.569 38.223 38.015 38.223 0.208 0.5%
City of Rockford 43.836 41.278 36.599 42.018 5.419 12.9%
City of Albertville 46.355 41.794 41.954 42.812 0.858 2.0%
City of Annandale 54.606 47.741 42.945 43.250 0.305 0.7%
City of Waverly 57.262 44.630 41.147 44.241 3.094 7.0%
City of Delano 49.061 42.657 41.419 44.360 2.941 6.6%
City of Buffalo 55.034 50.562 47.867 51.942 4.075 7.8%
City of Clearwater 69.978 63.657 52.292 54.653 2.361 4.3%
City of Maple Lake 62.164 59.182 52.694 59.315 6.621 11.2%
City of Montrose 51.719 47.934 44.208 62.034 17.826 28.7%
City of Cokato 68.079 60.436 55.238 64.100 8.862 13.8%
City of Howard Lake 67.661 62.009 57.926 67.288 9.362 13.9%
City of South Haven 90.696 81.173 74.141 76.154 2.013 2.6%
CITY TAX RATES IN WRIGHT COUNTY, MINNESOTA
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Monticello’s population grew by approximately 14% in the last ten years. The city has
undeveloped commercial and residential real estate and is positioned well to benefit from more
urban flight from the Twin Cities. Access to major transportation corridors makes the city an
ideal location for future growth. The following table includes population statistics over the last
ten years:
As shown in these statistics, Monticello is unique with a very different set of circumstances
from many other communities of 15,000 in population. Operating a municipal liquor store,
deputy registrar, telecommunications network, and community center create additional work
from a staffing perspective and demand more management and oversight. Its location on an
interstate brings commuters from outside the city, which is beneficial to business that operate
in the city but creates additional wear and tear on city streets and demand for public safety and
recreational services. For this reason, the city pursued a Local Option Sales Tax from the voters
on the 2024 ballot, which was passed and goes into effect on April 1, 2025. The city is also
growing with new development, providing some growth to the tax base. However, the city is
not in control of the timing of development, which in many instances requires public
investment in addition to private investment.
Additionally, the city having one major taxpayer with complex regulations creates risk and
uncertainty. Xcel’s plant is valued using complicated information and with considerations by the
State of Minnesota’s Department of Revenue. Long-term planning is especially challenging
because while the plant’s license for operation was recently extended to 2050, changes in the
energy and technology industries create additional unknowns. Though Xcel is licensed to
operate until 2050, the State of Minnesota’s current Certificate of Need (CN) for Xcel, which
allows the plant to store spent fuel, is only valid through 2040. Xcel intends to request an
extension to 2050 as part of its next Integrated Resource Plan (IRP) when it files with the MN
Public Utilities Commission (PUC). Having one large and unique taxpayer causes differences in
per capita figures, which makes it difficult to find comparison city data. Additionally, it creates
uncertainty in future impacts to other taxpayers whether the levy is raised annually or not.
Year Population Change
2015 13,125 132
2016 13,311 186
2017 13,409 98
2018 13,553 144
2019 13,782 229
2020 13,886 104
2021 14,455 569
2022 14,619 164
2023 14,764 145
2024 14,840 76
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PROPERTY TAX BASICS
Assessment and Classification
The property tax system is a continuous cycle, but it effectively begins with the estimation of
property market values by local assessors. Assessors attempt to determine the approximate
selling price of each parcel of property based on the current market conditions.
Along with the market value determination, a property class is assigned to each parcel of
property based on the use of the property. For example, property that is owner-occupied as a
personal residence is classified as a residential homestead. The “use class” is important because
the Minnesota system, in effect, assigns a weight to each class of property. Generally,
properties that are associated with income production (e.g., commercial, and industrial
properties) have a higher classification weight than other properties.
The property classification system defines the tax capacity of each parcel as a percentage of
each parcel’s market value. For example, a $250,000 home which is classified as a residential
homestead has a class rate of 1.0 percent and therefore has a tax capacity of $250,000 x .01 or
$2,500. (A sample of the class rates is included in the table on the next page.)
[parcel market value] * [class rate] = [parcel tax capacity]
The next step in calculating the tax burden for a parcel involves the determination of each local
unit of government’s property tax levy. The city, county, school district, and any special
property taxing authorities must establish their levy by December 28 of the year preceding the
year in which taxpayers will pay the levy. The property tax levy is set after the consideration of
all other revenues including state aids such as LGA.
[city budget] - [all non-property tax revenues] = [city levy]
Local Tax Rates
Local governments do not directly set a tax rate. Instead, the tax rate is a product of the levy
and the total tax base. To compute the local tax rate, a county must determine the total tax
capacity to be used for spreading the levies. The total tax capacity is computed by first
aggregating the tax capacities of all parcels within the city. Several adjustments to this total
must be made because not all tax capacity is available for general tax purposes. The result of
this calculation produces taxable tax capacity. Taxable tax capacity is used to determine the
local tax rates.
[city levy] / [taxable tax capacity] = [city tax rate]
Parcel Tax Calculations
The property tax bill for each parcel of property is determined by multiplying the parcel’s tax
capacity by the total local tax rate. The tax statement for each individual parcel itemizes the
taxes for the county, municipality, school district, and any special taxing authorities.
[parcel tax capacity] * [total local tax rate] = [parcel property tax bill]
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Terms Defined
Class rates - The percent of market value set by state law that establishes the property’s tax
capacity subject to the property tax. See table below for a sample list of class rates.
Local tax rate - The rate used to compute taxes for each parcel of property. Local tax rate is
computed by dividing the certified levy (after reduction for fiscal disparities distribution levy
and disparity reduction) by the taxable tax capacity.
Homestead Market Value Exclusion (HMVE) – Starting with taxes payable in 2012, eligible
homesteads will pay property taxes on only a portion of the value of their homes. The
maximum exclusion was increased in 2025 so that 40% of value is excluded at a home value of
$95,000 and phases out as home value grows, up to a value of $517,200.
Property class - The classification assigned to each parcel of property based on the use of the
property. For example, owner-occupied residential property is classified as homestead.
Tax capacity - The valuation of property based on market value and statutory class rates. The
property tax for each parcel is based on its tax capacity.
Truth-in-Taxation - The “taxation and notification law” which requires local governments to set
estimated levies, inform taxpayers about the impacts, and announce which of their regularly
scheduled council meetings will include a discussion of the budget and levy. Taxpayer input is
taken at that meeting.
Property Class Local Taxes
Payable 2024
State Tax Payable 2024
Residential Homestead: No state tax
1st $500,000 1.00%
>$500,000 1.25%
Non-homestead Residential: No state tax
Single unit:
1st $500,000 1.00% >$500,000 1.25%
2–3-unit buildings 1.25%
Market-rate Apartments: 1.25% No state tax
Commercial/Industrial:
1st $150,000 1.50% Subject to state levy
>$150,000
Electric generation machinery
2.00%
2.00% (Commercial-industrial rate)
Seasonal Recreational Residential: 1st $500,000 1.00% Subject to state levy
>$500,000 1.25% (Commercial-industrial rate)
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TRUTH-IN-TAXATION (TNT)
Summary Chart for Taxes Payable 2025
Date Action
On or Before
Sept. 30
All cities and special taxing districts (EDAs, HRAs, port authorities, etc.) must
adopt any proposed property tax levy and certify the proposed levy to the
county auditor. (September 23, 2024)
On or Before
Sept. 30
At one meeting, the city council adopts the proposed property tax levy and
announces the time and place of a future city council meeting at which the
budget and levy will be discussed, and public input allowed, prior to final
budget and levy determination. (September 23, 2024)
On or before
Sept. 30
Cities must provide the county auditor with the following information:
•The time and place of the meeting at which the budget and levy will
be discussed, and public input allowed. (This public input meeting must
occur after Nov. 24 and must start at or after 6 p.m. The time and place of
the public input meeting must be included in the minutes.)
•A phone number that city taxpayers may call if they have questions
related to the auditor’s property tax notice; this does not require listing a
private phone number.
•An address where comments will be received by mail; this does not
require listing a private address.
(September 24, 2024)
Nov. 11 - Nov. 24 County auditor prepares and sends parcels specific notices.
Nov. 25 - Dec. 28 City council holds meeting to discuss the budget and property tax levy and,
before a final determination, allows public input. (December 9, 2024)
On or before Dec.
28
Cities must certify final property tax levy to the county auditor. Cities must
also file the certificate of compliance (Form TNT) with the Department of
Revenue by December 28th. (December 10, 2024)
**The date an activity occurred is highlighted.
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DEBT GUIDE
Equipment Certificates/Capital Notes
A statutory city may issue certificates of indebtedness or capital notes (Section 412.301) to
purchase:
Public safety equipment, ambulance, and other medical equipment; road construction and
maintenance equipment; and other capital equipment.
Computer hardware and software, whether bundled with machinery or equipment or un-
bundled, together with application development services and training related to the use of
the computer hardware or software.
The statute does not define “other capital equipment.” Cities seeking to borrow for equipment
not specifically listed should work with bond counsel to determine eligibility.
The term of the Certificates/Notes cannot exceed 10 years from the dated date of the obligations.
This limitation may affect the timing of principal and interest payments. This debt is subject to
the debt limit.
A reverse referendum provision applies if the amount of the borrowing exceeds 0.25% of the
estimated market value of taxable property within the city. An election is required if a petition
signed by voters equal to 10% of the voters in the last regular municipal election is submitted to
the city clerk within 10 days after publication of the resolution authorizing the issuance of the
Certificates/Notes.
Different statutory authority exists for home rule charter cities (Section 410.32). Capital Notes
issued by charter cities are subject to the same statutory requirements as statutory cities with
the following exceptions:
The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03%
of the estimated market value of taxable property in the city.
No reverse referendum provision applies, but issuance must be approved by a two-thirds vote
of the city council.
Unless prohibited by the charter, these cities may also issue Capital Notes under the authority
granted to statutory cities.
Tax Abatement Bonds
Tax Abatement Bonds (Section 469.1814) may be used to finance a variety of development
activities and public improvements. The statute allows proceeds of Tax Abatement Bonds be used
to (1) pay for public improvements that benefit the property, (2) to acquire and convey land or
other property, as provided under this section, (3) to reimburse the property owner for the cost
of improvements made to the property, or (4) to pay the costs of issuance of the bonds.
Tax Abatement Bonds are often used to facilitate economic development in ways not allowed by
tax increment financing. They have also evolved into a tool for financing community recreation
and cultural facilities. The statutory authority creates an abatement levy based on the property
value of parcels subject to the abatement. The authority to use tax abatement applies separately
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to each taxing jurisdiction. If other jurisdictions (county and school district) approve an
abatement, this revenue may be pledged to bonds issued by the city.
The principal amount of the bonds may not exceed the sum of the authorized abatements.
A debt service levy may be used to pay interest on the bonds.
The annual amount of all abatements cannot exceed the greater of 10% net tax capacity
value of the jurisdiction or $200,000.
The parameters of the abatement and authorization for the bonds are set by resolution.
The resolution cannot be approved until after a public hearing is held.
Street Reconstruction Bonds
Street Reconstruction Bonds are an example of debt issuing authority found in unusual places.
The statutory provisions for Street Reconstruction Bonds appear in the portion of Chapter 475
dealing with election requirements for debt issuance (Section 475.58, Subd. 3b).
Street Reconstruction Bonds can be used to finance the reconstruction and bituminous overlay
of existing city streets. Eligible improvements may include turn lanes and other improvements
having a substantial public safety function, realignments, other modifications to intersect with
state and county roads, and the local share of state and county road projects. Except in the case
of turn lanes, safety improvements, realignments, intersection modifications, and the local share
of state and county road projects, street reconstruction and bituminous overlays does not include
the portion of project cost allocable to widening a street or adding curbs and gutters where none
previously existed. The enabling statute sets forth specific requirements for the issuance of Street
Reconstruction Bonds:
The projects financed under this authority must be described in a street reconstruction
plan. The plan must describe the street reconstruction or overlay to be financed, the
estimated costs, and any planned reconstruction or overlay of other streets in the
municipality over the next five years
The city must hold a public hearing on the proposed plan and the related issuance of bonds.
The plan and the issuance of bonds must be approved by the city council by a vote of all the
members of the governing body present at the meeting.
The issuance of bonds is subject to a reverse referendum. An election is required if voters
equal to 5% of the votes cast in the last municipal general election file a petition with the
city clerk within 30 days of the public hearing. If the city decides not to undertake an
election, it may not propose the issuance of Street Reconstruction Bonds for the same
purpose and in the same amount for a period of 365 days from the date of receipt of the
petition. If the question of issuing the bonds is submitted and not approved by the voters,
the provisions of section 475.58, subdivision 1a, shall apply (no resubmission for same
purpose/ amount for 180 days).
Street Reconstruction Bonds are subject to the debt limit.
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Revenue Bonds
One exception to the previous statement is the issuance of Revenue Bonds. Chapter 475
authorizes borrowing for “any utility or other public convenience from which a revenue is or may
be derived”. This authority is sufficient when the sole security is the pledge of revenue from a
public enterprise. Although this debt is most frequently associated with municipal utilities, any
“public convenience” with a pledge-able source of revenue may use this authority. Minnesota
cities do not frequently issue Revenue Bonds. Most borrowing needs have separate statutory
authority that allows a general obligation pledge. The most common Revenue Bonds are for
electric utilities, sales taxes, and liquor stores.
Improvement Bonds
One of the most used tools is General Obligation (G.O.) Improvement Bonds issued pursuant to
Chapter 429. Improvement Bonds can be issued for a wide range of public improvements.
Eligible Improvements
The types of improvements specifically authorized in Chapter 429 can be found in Section
429.021. It is important to read and understand the specific statutory provisions. Some provisions
are broader than the basic improvement. For example, a “street improvement” may also include
streetscape (beautification), storm sewers and utility connection lines. Other provisions may
contain important expansions or limitations on the authority. Sanitary and storm sewer
improvements may be made outside of the city limits.
The public improvements currently authorized in Chapter 429 include the following:
1.Acquire, open, and widen any street, and improve the same by constructing, reconstructing,
and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking strips of any
material, or by grading, graveling, oiling, or otherwise improving the same, including the
beautification thereof and including storm sewers or other street drainage and connections
from sewer, water, or similar mains to curb lines.
2.Acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary sewers
and systems, including outlets, holding areas and ponds, treatment plants, pumps, lift
stations, service connections, and other appurtenances of a sewer system, within and
without the corporate limits.
3.Construct, reconstruct, extend, and maintain steam heating mains.
4.Install, replace, extend, and maintain streetlights and street lighting systems and special
lighting systems.
5.Acquire, improve, construct, reconstruct, extend, and maintain water works systems,
including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,
treatment plants, and other appurtenances of a water works system, within and without
the corporate limits.
6.Acquire, improve, and equip parks, open space areas, playgrounds, and recreational
facilities within or without the corporate limits.
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7.Plant trees on streets and provide for their trimming, care, and removal.
8.Abate nuisances and drain swamps, marshes, and ponds on public or private property, and
fill the same.
9.Construct, reconstruct, extend, and maintain dikes and other flood control works.
10.Construct, reconstruct, extend, and maintain retaining walls and area walls.
11.Acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and promote a
pedestrian skyway system. Such improvement may be made upon a petition pursuant to
section 429.031, subdivision 3.
12.Acquire, construct, reconstruct, extend, operate, maintain, and promote underground
pedestrian concourses.
13.Acquire, construct, improve, alter, extend, operate, maintain, and promote public malls,
plazas, or courtyards.
14.Construct, reconstruct, extend, and maintain district heating systems.
15.Construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
systems in existing buildings, but only upon a petition pursuant to section 429.031,
subdivision 3.
16.Acquire, construct, reconstruct, improve, alter, extend, and maintain highway sound
barriers.
17.Improve, construct, reconstruct, extend, and maintain gas and electric distribution facilities
owned by a municipal gas or electric utility.
18.Purchase, install, and maintain signs, posts, and other markers for addressing related to the
operation of enhanced 911 telephone service.
19.Improve, construct, extend, and maintain facilities for Internet access and other
communications purposes, if the council finds that: (i) the facilities are necessary to make
available Internet access or other communications services that are not and will not be
available through other providers or the private market in the reasonably foreseeable
future; and (ii) the service to be provided by the facilities will not compete with service
provided by private entities.
20.Assess affected property owners for all or a portion of the costs agreed to with an electric
utility, telecommunications carrier, or cable system operator to bury or alter a new or
existing distribution system within the public right-of-way that exceeds the utility’s design
and construction standards, or those set by law, tariff, or franchise, but only upon petition
under section 429.031, subdivision 3.
21.Assess affected property owners for repayment of voluntary energy improvement
financings under section 216C.436, subdivision 7.
Other statutes may also authorize the use of special assessments to pay for improvements. For
example, authorized improvements within a Housing Improvement Area may be paid with special
assessments.
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Minimum Assessment
General Obligation Improvement Bonds require a minimum 20% assessment. It is important to
understand the method for determining the minimum assessment. A common assumption is that
assessments must equal or exceed 20% of the amount to be borrowed. While this calculation
works for Tax Increment Bonds, the 20% calculation for Improvement Bonds is different:
1.The assessment calculation is based on the cost of the improvement to the city. This cost
may or may not equal the amount of the Improvement Bonds.
2.The cost of the improvement does not include activities that will not be assessed to
benefitted property owners and not financed with G.O. Improvement Bonds. These
improvements can be made without following the procedures of Chapter 429. This
exclusion typically applies to utility (sanitary sewer, watermain, and storm sewer) im-
provements paid from reserves or bonds issued under Minnesota Statutes, Chapter 444.
3.The cost to the city excludes all monies contributed by other units of government to pay for
the improvement.
4.The up-front use of city non-utility reserves (both General Fund and capital improvement)
does not reduce the cost to the city.
One exception to this 20% requirement is improvements for automobile parking facilities (Section
459.14). Bonds issued to finance the construction or maintenance of automobile parking facilities
require special assessments in an amount not less than 50% of the amount of the bonds.
Assessment Considerations
State Law does not prescribe assessment methodology. Some cities have formal assessment
policies. Other cities deal with assessments on a project-by-project basis.
A guiding factor in setting assessments is the market value test. The amount assessed to a
property cannot exceed the increase in market value of the property because of the
improvement. There is no requirement to make this finding as part of the improvement process.
The issue comes into play primarily in projects with larger assessments and greater risk of appeal.
Assessments are also constrained by the notice of hearing for the improvement. The total
amount assessed cannot exceed the amount stated in the notice. The area assessed cannot be
larger, but can be smaller, than the area receiving notice of the Hearing.
The special assessment calculation is based on the “improvement.” An improvement may be
more than a single project. There are two ways to manage multiple projects into a single
improvement for the purposes of Chapter 429. Section 429.021, Subd. 2 allows for an
improvement on two or more streets, or two or more types of improvements, in or on the same
street or streets or different streets may be included in one proceeding and conducted as one
improvement. This combining of improvements is typically spelled out in the engineering
feasibility report and considered at the improvement hearing. Projects that are instituted
separately may be subsequently combined under the authority of Section 435.56.
Revenues to pay debt service on the portion that is not assessed may come from any legally
available source including a property tax levy.
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Bond Issues
Planning for the issuance of Improvement Bonds requires a clear understanding of the special
assessments. In addition to the total amount assessed, several other factors are important:
What is the term of repayment? First levy year payable? Total number of years payable?
Will the assessments be repaid with level annual installments of principal or level annual
payments of principal and interest?
What interest rate will be charged on the unpaid balance? Is it tied to the interest rate on
the bonds?
Will any of the assessments be deferred? If so, when will they be paid?
When is the assessment hearing and when will the assessments be certified to the County?
What are the expectations for the initial prepayment of assessments?
The timing of the improvement process is another important consideration. Improvement Bonds
can be issued any time after the city council conducts the improvement hearing and authorizes
the improvements. No improvement hearing is needed if the parties that petition for the
improvement will be assessed 100% of the cost. Each point in time has different implications for
issuing bonds:
Bonds issued soon after the improvement hearing will be based on estimated construction
costs and assumptions about special assessments.
Bonds may be issued immediately after the receipt of bids to provide construction
financing. The finance plan will rely on assumptions about special assessments.
Bonds may be issued after completion of the assessment process. This allows the finance
plan to be based on final construction costs and actual assessments. This approach can also
consider the number of initial prepayments. Delaying financing until after the assessment
process requires city funds to pay for construction and a reimbursement resolution to allow
the repayment of these funds with the proceeds of tax-exempt bonds.
For controversial projects with a higher risk of assessment appeals, cities will conduct the
assessment process during the period between the receipt and award of construction bids. This
approach allows the city to know the appeal risk before committing to undertake the
improvement. Improvement Bonds are not subject to the statutory debt limit.
Utility Revenue Bonds
Minnesota cities rarely issue pure Revenue Bonds to finance sanitary sewer, water, and storm
sewer utility improvements. State Law allows cities to add its general obligation to the pledge of
net utility revenues for these improvements (Section 444.075). G.O. Utility Revenue Bonds may
be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain
sanitary sewer, water, and storm sewer facilities, and maintain and operate the facilities inside
or outside its corporate limits.
These bonds are sometimes called “double barreled.” They are secured by both utility revenues
and the city’s general obligation. The bonds may be secured by a single utility or by combined
221Table of Contents
utility funds. Debt service on Utility Revenue Bonds is paid from the net revenues of the utilities
pledged to secure the bonds. Special assessments may also be levied and pledged to the bonds.
Unlike Improvement Bonds, property taxes cannot be a permanent and ongoing source of
revenue to pay debt service. Property taxes should only be used on a temporary basis when the
other revenues are insufficient to meet the obligations.
It is important to understand the nature of the revenues that will be used to support the bonds.
How much of the revenue comes from connection charges and other fees associated with
growth?
Are rate increases needed? If so, are there any procedural issues (such as a public hearing
or approval by the utilities commission)?
Are there any large users that constitute a significant portion of the revenue base?
Are there special agreements with large users?
There are no special procedural requirements for the issuance of Utility Revenue Bonds.
Capital Improvement Plan Bonds
Cities may issue Capital Improvement Plan (CIP) Bonds to finance the construction and
maintenance of city hall, town hall, library, public safety facility, and public works facility (Section
475.521). These bonds may not be used to finance any other type of facility or improvement.
Expenditures for eligible capital improvements incurred before adoption of the capital
improvement plan are allowed if included in a plan approved at or prior to the public hearing on
the issuance of bonds.
The projects to be financed must be included in a capital improvements plan (CIP) that meets the
criteria of the statute. The plan must cover at least a five-year period beginning with the date of
its adoption. The plan must set forth the estimated schedule, timing, and details of specific capital
improvements by year, together with the estimated cost, the need for the improvement, and
sources of revenue to pay for the improvement. The CIP should also include information about
the factors required by the statute to be considered by the city council. These factors are:
Condition of the municipality’s existing infrastructure, including the projected need for
repair or replacement;
Likely demand for the improvement;
Estimated cost of the improvement;
Available public resources;
Level of overlapping debt in the municipality;
Relative benefits and costs of alternative uses of the funds;
Operating costs of the proposed improvements; and
Alternatives for providing services most efficiently through shared facilities with other
municipalities or local government units.
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The required CIP may be a document prepared specifically for authorizing the issuance of bonds
or it may be incorporated into other capital improvement planning by the city.
The maximum amount of CIP Bonds is limited. The maximum principal and interest payable in
any year for all outstanding CIP Bonds cannot exceed 0.16% of the estimated market value of
taxable property in the city. This calculation is made using the estimated market value for the
taxes payable year in which the bonds are issued and sold.
The bonds are subject to the debt limit for cities with a population of 2,500 or more. Both
approval of the CIP and the issuance of bonds require a public hearing. A single public hearing
may be held to meet these requirements. The bonds must be authorized by a three-fifths vote of
a five-member city council. If the city council has more than five members, two-thirds approval
is needed.
Issuance of the bonds is subject to reverse referendum. An election is required for the issuance
of the bonds if a petition signed by voters equal to 5% of the votes cast in the city in the last
municipal general election is filed with the city clerk within 30 days after the public hearing. If the
city does not submit the question to the voters, it may not propose the issuance of bonds under
this section for the same purpose and in the same amount for a period of 365 days from the date
of receipt of the petition. If the question of issuing the bonds is submitted and not approved by
the voters, the city must wait 180 days before voting on the same question again.
Lease Revenue Bonds
Lease Revenue Bonds are used by cities to finance public facilities. There is no specific statutory
authority for Lease Revenue Bonds. This form of financing combines two statutory powers.
Economic development authorities (EDA) and housing and redevelopment authorities (HRA)
have the authority to issue Revenue Bonds for their corporate purposes, including the
construction of public facilities. The security for the bonds and the revenue to pay debt service
comes from a lease purchase with the city. Not all public facilities are equally suited for the use
of Lease Revenue Bonds. As a general rule, the more essential the facility, the better the
application of this tool. This is due to the perception of investors that the city is less likely to not
appropriate and walk away from an essential facility.
A similar form of financing is Certificates of Participation. The investor receives a certificate
secured by a share of the lease payments. The underlying security is the same as Lease Revenue
Bonds. The status of the tax levy to make lease payments is another consideration in the use of
Lease Revenue Bonds. Under the most recent version of levy limits, the levy for Lease Revenue
Bonds can be made of a special levy and outside of levy limits. The special levy authority is to pay
debt service of another political subdivision, and the EDA is a political subdivision. Levies to make
lease payments do not currently qualify as a special levy and, therefore, are subject to levy limits.
The taxing power of the EDA may also be pledged to Lease Revenue Bonds.
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Other Debt Terms
Bank Qualified
Issuers that reasonably expect to issue $10,000,000 or less in tax-exempt bonds during a calendar
year may designate bonds as “bank qualified”. The name refers to the fact that banks may deduct
a portion of the interest cost on the carry purchased for its portfolio. This preferential tax
treatment usually results in lower interest rates than bonds that are not bank qualified. The
difference between bank qualified and not bank qualified rates varies over time and is typically
higher for longer maturities. Both the direct debt of the issuer and any conduit debt count against
the issuer’s $10,000,000 annual cap.
Arbitrage
Arbitrage regulations govern the ability to invest the proceeds of tax-exempt bonds. The basic
rule of arbitrage is that the gross proceeds of a bond issue may not be invested at a rate
“materially higher” than the yield on the bonds. The complexities of arbitrage calculation and
compliance are not discussed in this guide. Instead, this guide focuses on the three basic arbitrage
considerations for most Minnesota cities: construction fund, debt service fund, and arbitrage
rebate.
Arbitrage Rebate
Issuers must pay (rebate) to the federal government income earned in excess of the bond yield
unless subject to the small issuer or the spenddown exceptions.
The small issuer exception applies when the total principal amount of tax exempt, non-private
activity bonds does not exceed $5,000,000 in any calendar year. Current refunding bonds up to
the amount of the outstanding principal refunded do not count against this limit. There are three
options for meeting the spenddown exception:
1.6-month exception - gross proceeds and interest earnings are allocated to expenditures for
governmental or qualified purposes that are incurred within 6 months after the date of
issuance.
2.18-month exception - gross proceeds and interest earnings are spent within the following
schedule from date of issuance: (1) 15% within 6 months; (2) 60% within 12 months; and
(3) 100% within 18 months (with a 5% reasonable retainage carryover amount for an
additional 12 month period).
3.2-year spending exception – issue is a “construction issue” (75% of issue is actually spent
on construction) and gross proceeds and interest earnings are spent within the following
schedule from date of issuance: (1) 10% within 6 months; (2) 45% within 12 months; (3)
75% within 18 months; and 4) 100% within 24 months.
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MINNESOTA STATUTES
DEBT LIMIT
475.53 LIMIT ON NET DEBT
Subdivision 1. Terms.
For the purposes of this chapter, the terms defined in this section shall have the meanings given
them.
Subd. 2. Municipality.
"Municipality" means a city of any class, county, town, or school district.
Subd. 3. Obligation.
"Obligation" means any promise to pay a stated amount of money at a fixed future date or
upon demand of the obligee, regardless of the source of funds to be used for its payment,
made for the purpose of incurring debt, including the purchase of property through an
installment purchase contract or any other deferred payment agreement, for which funds are
not appropriated in the current year's budget.
Subd. 4. Net debt.
"Net debt" means the amount remaining after deducting from its gross debt the amount of
current revenues which are applicable within the current fiscal year to the payment of any debt
and the aggregate of the principal of the following:
(1) Obligations issued for improvements which are payable wholly or partly from the
proceeds of special assessments levied upon property specially benefited thereby, including
those which are general obligations of the municipality issuing them, if the municipality is
entitled to reimbursement in whole or in part from the proceeds of the special assessments.
(2) Warrants or orders having no definite or fixed maturity.
(3) Obligations payable wholly from the income from revenue producing conveniences.
(4) Obligations issued to create or maintain a permanent improvement revolving fund.
(5) Obligations issued for the acquisition, and betterment of public waterworks systems,
and public lighting, heating, or power systems, and of any combination thereof or for any
other public convenience from which a revenue is or may be derived.
(6) Debt service loans and capital loans made to a school district under the provisions of
sections 126C.68 and 126C.69.
(7) Amount of all money and the face value of all securities held as a debt service fund for
the extinguishment of obligations other than those deductible under this subdivision.
(8) Obligations to repay loans made under section 216C.37.
(9) Obligations to repay loans made from money received from litigation or settlement of
alleged violations of federal petroleum pricing regulations.
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(10) Obligations issued to pay pension fund or other postemployment benefit liabilities
under section 475.52, subdivision 6, or any charter authority.
(11) Obligations issued to pay judgments against the municipality under section 475.52,
subdivision 6, or any charter authority.
(12) All other obligations which under the provisions of law authorizing their issuance are
not to be included in computing the net debt of the municipality.
PROPERTY TAX LEVY
275.08 AUDITOR TO FIX RATE.
Subdivision 1. Generally.
The rate percent of all taxes, except the state tax and taxes the rate of which may be fixed by
law, shall be calculated and fixed by the county auditor according to the limitations in this
chapter hereinafter prescribed; provided, that if any county, city, town, or school district shall
return a greater amount than the prescribed rates will raise, the auditor shall extend only such
amount of tax as the limited rate will produce.
Subd. 1a. Computation of tax capacity.
The county auditor shall compute the net tax capacity for each parcel according to the
classification rates specified in section 273.13. The net tax capacity will be the appropriate
classification rate multiplied by the parcel's market value.
Subd. 1b. Computation of tax rates.
(a) The amounts certified to be levied against net tax capacity under section 275.07 by an
individual local government unit shall be divided by the total net tax capacity of all taxable
properties within the local government unit's taxing jurisdiction. The resulting ratio, the
local government's local tax rate, multiplied by each property's net tax capacity shall be
each property's net tax capacity tax for that local government unit before reduction by any
credits.
273.032 MARKET VALUE DEFINITION.
For the purpose of determining any property tax levy limitation based on market value or any
limit on net debt, the issuance of bonds, certificates of indebtedness, or capital notes based on
market value, any qualification to receive state aid based on market value, or any state aid
amount based on market value, the terms "market value," "estimated market value," and
"market valuation," whether equalized or unequalized, mean the estimated market value of
taxable property within the local unit of government before any adjustments for tax increment,
fiscal disparity, or powerline credit, but after the limited market adjustments under section
273.11, subdivision 1a, and after the market value exclusions of certain improvements to
homestead property under section 273.11, subdivision 16. Unless otherwise provided, "market
value," "estimated market value," and "market valuation" for purposes of this paragraph, refer
to the taxable market value for the previous assessment year.
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273.13 CLASSIFICATION OF PROPERTY.
Subdivision 1. How classified.
All real and personal property subject to a general property tax and not subject to any gross
earnings or other in-lieu tax is hereby classified for purposes of taxation as provided by this
section.
Subd. 21b. Tax capacity.
"Net tax capacity" means the product of the appropriate classification rates in this section and
taxable market values.
Subd. 22. Class 1.
(a)Except as provided in subdivision 23 and in paragraphs (b) and (c), real estate which is
residential and used for homestead purposes is class 1a. In the case of a duplex or triplex in
which one of the units is used for homestead purposes, the entire property is deemed to be
used for homestead purposes. The market value of class 1a property must be determined
based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of one
percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the person who is blind and
the spouse of the person who is blind;
(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or
(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.
HOUSING AND REDEVELOPMENT AUTHORITY TAX LEVY
469.033 PUBLIC REDEVELOPMENT COST; PROCEEDS; FINANCING.
Subd. 6. Operation area as taxing district, special tax.
All of the territory included within the area of operation of any authority shall constitute a
taxing district for the purpose of levying and collecting special benefit taxes as provided in this
subdivision. All of the taxable property, both real and personal, within that taxing district shall
be deemed to be benefited by projects to the extent of the special taxes levied under this
subdivision. Subject to the consent by resolution of the governing body of the city in and for
which it was created, an authority may levy a tax upon all taxable property within that taxing
district. The tax shall be extended, spread, and included with and as a part of the general taxes
for state, county, and municipal purposes by the county auditor, to be collected and enforced
therewith, together with the penalty, interest, and costs. As the tax, including any penalties,
interest, and costs, is collected by the county treasurer it shall be accumulated and kept in a
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separate fund to be known as the "housing and redevelopment project fund." The money in the
fund shall be turned over to the authority at the same time and in the same manner that the
tax collections for the city are turned over to the city, and shall be expended only for the
purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair
of the authority or an authorized representative. The amount of the levy shall be an amount
approved by the governing body of the city, but shall not exceed 0.0185 percent of estimated
market value. The authority shall each year formulate and file a budget in accordance with the
budget procedure of the city in the same manner as required of executive departments of the
city or, if no budgets are required to be filed, by August 1. The amount of the tax levy for the
following year shall be based on that budget. The requirements of section 275.067 apply to a
housing and redevelopment authority that has not previously certified a levy.
469.001 PURPOSES.
The purposes of sections 469.001 to 469.047 are:
(1)to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to
protect the health, safety, morals, and welfare of the citizens of this state;
(2) to clear and redevelop blighted areas;
(3) to perform those duties according to comprehensive plans;
(4)to remedy the shortage of housing for low and moderate income residents, and to
redevelop blighted areas, in situations in which private enterprise would not act without
government participation or subsidies; and
(5) in cities of the first class, to provide housing for persons of all incomes.
Public participation in activities intended to meet the purposes of sections 469.001 to 469.047
and the exercise of powers confined by sections 469.001 to 469.047 are public uses and
purposes for which private property may be acquired and public money spent.
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UTILITY RATES FOR 2025
Residential Water & Sprinklers: 10, 12, 16, 17, 30
0 - 1,000 gallons $10.31
1,001 - 6,500 gallons (5,500 gallons)$2.41/1,000 gallons
6,501 - 11,500 gallons (5,000 gallons)$2.79/1,000 gallons
11,501 - 16,500 gallons (5,000 gallons)$3.07/1,000 gallons
16,501 - 33,000 gallons (16,500 gallons)$3.32/1,000 gallons
33,001 gallons and over $3.56/1,000 gallons
Commercial Water & Sprinklers: 11, 13, 90, 31, 32, 90, 91, 92, 93
0 - 1,000 gallons $10.31
1,001 - 6,500 gallons (5,500 gallons)$2.41/1,000 gallons
6,501 - 33,000 gallons (26,500 gallons)$2.79/1,000 gallons
33,001 gallons and over $3.07/1,000 gallons
Industrial Water: 14 (effective 7/1/24)
All Water Usage $2.93/1,000 gallons
State Water Service Connection Fee: 18
Per Connection $0.81/mo.
Sewer Rates - Residential & Commercial: 20, 25, 26
0 - 1,000 gallons $11.20
1,001 gallons and over $6.88/1,000 gallons
Sewer Special Cases: SW21, SW22
Has own well $10 per person
Industrial Sewer Rates: 24 (effective 7/1/24)
All Sewer Usage $4.26/1,000 gallons
BOD5 (Biochemical Oxygen Demand)$0.460/lb.
TSS (Total Suspended Solids)$0.632/lb.
Testing Actual cost + 10%
Stormwater Rates:
Residential: 40 $4.75
Non-Residential (7 drainage units per impervious acre): 41 $4.75
Residential Garbage Charges - Taxable (effective 2/1/24)
1st Individual Residential Cart $10.90
2nd Individual Residential Cart $13.00
Residential Recycling Charges (effective 2/1/24)
Per Cart $5.78
Other:
Water On/Off Charge $25/each
Water Availability Charge: 15 $43/year
Final Bill Processing Fee $25.00
Obsolete or Refusal of Equipment (manual read) Charge $50.00
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CAPITALIZATION THRESHOLDS & USEFUL LIVES
Class of Asset Details
Useful
Life (Yrs) Threshold
Land N/A $1
Land improvements 10-20 $50,000
Building/building improvements: 12-40 $20,000
Construction Interior & Roof Cover
Heating Ventilation AC & Lighting
Electrical
Elevators, Fire, Piping & Plumbing
Site Preparation
Floor Structure & Cover, Foundation, Roof
Structure, Steel Frame, Walls Exterior
Primary Infrastructure and Utility 10-40 $75,000
Paving Systems
Water, Sanitary & Stormwater
Secondary Infrastructure 10-40 $25,000
Sidewalk, Boardwalk, Pathways
Streetlights, Signage
Equipment 5-20 $10,000
Vehicles
Machinery
Software and
non-tangible 5-20 $10,000
Purchased and internally developed
Construction Work in Progress
Upon completion,
per above class
Equipment expenditures for items between $500 and $10,000 are recorded as small tools and
equipment, which is a supply account. Building and improvement expenditures below the
thresholds are recorded as repairs and maintenance. Current revenues finance expenditures for
supplies, repairs, and maintenance.
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TAX CAPACITY, TAX LEVY, & TAX RATE HISTORY
Tax Capacity City Tax HRA Tax Total Tax City Tax
Year Value Levy Levy Levy Capacity Rate
2016 25,891,898$ 8,925,000$ 280,000$ 9,205,000$ 34.470
2017 27,583,160$ 9,150,000$ 280,000$ 9,430,000$ 33.172
2018 29,528,145$ 9,547,000$ 323,000$ 9,870,000$ 32.332
2019 29,076,227$ 9,962,000$ 348,000$ 10,310,000$ 34.262
2020 29,870,392$ 10,445,000$ 355,000$ 10,800,000$ 34.968
2021 31,026,583$ 11,063,700$ 366,300$ 11,430,000$ 35.659
2022 31,073,603$ 11,353,000$ 388,000$ 11,741,000$ 36.536
2023 34,393,769$ 12,050,000$ 402,000$ 12,452,000$ 35.035
2024 37,843,681$ 13,074,000$ 451,000$ 13,525,000$ 34.547
2025 37,461,713$ 14,117,000$ 499,000$ 14,616,000$ 37.684
$-
$5
$10
$15
$20
$25
$30
$35
$40
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mi
l
l
i
o
n
s
Tax Levies and Tax Capacity History
City Tax Levy HRA Tax Levy Tax Capacity Value
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USEFUL TERMS (GLOSSARY)
ACCOUNT: An organizational or budgetary breakdown found within city funds. A term used to
identify an individual asset, liability, expenditure (and other uses), revenue (and other sources),
or fund balance.
ACCOUNTS PAYABLE: Amounts owed to others for goods or services received.
ACCOUNTS RECEIVABLE: Amounts due from others for goods furnished or services rendered.
ACCOUNTING SYSTEM: The total set of records and procedures which are used to record,
classify, and report information on financial status and operations of an entity.
ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are
recorded when they are earned, and expenditures are recorded when goods and services are
received.
ACTIVITY: A specific and distinguishable line of work performed by one or more organizational
components of a governmental unit for the purpose of accomplishing a function for which the
governmental unit is responsible. For example, "Ice & Snow Removal” is an activity performed
as part of the "Public Works" function.
AD VALOREM: In proportion to value. The basis for levying taxes on property.
AGENCY FUND: A fiduciary fund used to account for situations where the government’s role is
purely custodial.
AMERICAN RESCUE PLAN ACT (ARPA): Signed into law on March 11, 2021, this $1.9 trillion
funding program provided resources for a wide variety of recipients and for an extensive list of
uses. $350 billion of the funds were provided to state and local governments for emergency
funding in response to the COVID-19 pandemic.
AMORTIZATION: The action or process of gradually writing off the initial cost of an asset.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): A set of financial statements for a
governmental entity that comply with the accounting requirements established by the
Governmental Accounting Standards Board (GASB) and are audited by an independent auditor
using generally accepted government auditing standards.
APPROPRIATION: An authorization granted by a legislative body to make expenditures and to
incur obligations for specific purposes. An appropriation is limited in amount to the time it may
be expended.
ARBITRAGE: The simultaneous purchase and sale of the same asset in different markets in
order to profit from tiny differences in the asset's listed price. In governments, this typically
refers to the investment of funds received as proceeds from bond issuances.
ASSESSED VALUATION: Value placed upon real estate or other property as a basis for levying
taxes.
ASSESSMENTS: Charges made upon parties for actual services or benefits received.
ASSETS: Property owned by a governmental unit, which has a monetary value.
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ASSIGNED FUND BALANCE: Resources the government intends to use for specific purposes but
are neither restricted nor committed.
AUDIT: The examination of documents, records, reports, systems of internal control,
accounting and financial procedures, and other evidence for one or more of the following
purposes: a) To attest to whether the statements prepared from the accounts present fairly the
financial position and the results of financial operations of the constituent funds and balanced
account groups of the city in accordance with generally accepted accounting principles
applicable to city and on a basis consistent with that of the preceding year; b) To determine the
propriety, legality, and mathematical accuracy of a governmental unit's financial transactions;
c) To ascertain whether all financial transactions have been properly recorded; d) To evaluate
the stewardship of public officials who handle and are responsible for the financial resources of
a governmental unit.
BALANCED BUDGET: A budget in which estimated revenues and other sources equals
estimated expenditures and other uses. A balanced budget does not use reserves or retained
earnings to fund expenditures.
BERTRAM CHAIN OF LAKES REGIONAL PARK (BCOL): One of Monticello’s “Big 6” projects which
is a regional park with 4 lakes, acres of undisturbed shoreline, natural habitat, and oak forest,
blending passive natural recreation with active athletic and recreational play areas.
BOND: A written promise, generally under seal, to pay a specified sum of money, called the
face value or principal amount, at a fixed time in the future, called the date of maturity, and
carrying interest at a fixed rate, usually payable periodically.
BONDED INDEBTEDNESS: Outstanding debt by issues of bonds, which are repaid by ad valorem
taxes or other revenue.
BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a
given period and the proposed means of financing them.
BUDGET MESSAGE: A general discussion of the proposed budget presented in writing as a part
of the budget document. The budget message explains principal budget issues against the
background of financial experience in recent years and presents recommendations made by city
staff.
BUDGET CALENDAR: The schedule of key dates, which a government follows in the preparation
and adoption of the budget.
BUDGETARY CONTROL: The control or management of a governmental unit or enterprise in
accordance with an approved budget for the purpose of keeping expenditures within the
limitation of available appropriations and available revenues.
CAPITAL ASSETS: Assets used in operations and have initial useful lives extending beyond a
single reporting period. These assets must also meet capitalization thresholds, which vary by
asset classification and typically costs more than $10,000. Land, improvements to land,
vehicles, machinery, equipment, infrastructure, and other tangible and intangible assets used in
operations are examples of capital assets.
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CAPITAL EXPENDITURES: A capital expenditure occurs when a capital asset is purchased.
Expenditures that do not benefit more than one reporting period or meet the capitalization
thresholds are classified as current expenditures.
CAPITAL IMPROVEMENT BUDGET: A plan of proposed capital expenditures and a means of
financing them. The capital improvement budget is enacted as part of the complete annual
budget.
CAPITAL INPROVEMENT PLAN (CIP): A plan for capital expenditures to be incurred each year
over a fixed period of years to meet capital needs arising from the long-term work program or
otherwise. It sets forth each project or other contemplated expenditure in which the
government is to have a part and specifies the full resources estimated to be available to
finance the projected expenditures.
CAPITAL PROJECTS FUNDS: A governmental fund type used to account for financial resources
to be expended for the acquisition or construction of major capital assets.
CAPITALIZATION THRESHOLD: The level at which an item is considered either a current
expenditure or a capital expenditure. The threshold for equipment is $10,000.
CASH BASIS: The method of accounting under which revenues are recorded when received in
cash and expenditures are recorded when paid.
CHART OF ACCOUNTS: The classification system used by a government entity to organize the
accounting for various funds and departments.
COMMITTED FUND BALANCE: Resources used for specific purposes pursuant to constraints
imposed by formal action of the government’s highest level of decision-making authority (i.e.,
City Council).
CONSUMER PRICE INDEX (CPI): A statistical description of price levels provided by the U.S.
Department of Labor. The index is used as a measure of the increase in the cost of living (i.e.,
economic inflation).
CONTINGENCY: Budget for expenditures which cannot be placed in departmental budgets,
primarily due to uncertainty about the level or timing of expenditures when the budget is
adopted. The contingency also serves as a hedge against shortfalls in revenues or unexpected
expenditures.
CURRENT: A term applied to budgeting and accounting, designating the operations of the
present fiscal period as opposed to past or future periods including expenditures that do not
benefit more than one reporting period or meet the capitalization thresholds.
DEBT: An obligation resulting from borrowing money or purchasing goods and services.
DEBT LIMIT: The maximum amount of gross or net debt, which is legally permitted.
DEBT MARGIN: The amount of available debt, which may be issued by a governmental unit
before reaching its debt limit.
DEBT SERVICE FUND: A governmental fund type used to account for the accumulation of
resources for the payment of general long-term debt principal and interest. Proprietary fund
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type debt is accounted for in the enterprise fund or internal service fund receiving the debt
issue proceeds.
DEFICIT: An excess of expenditure or liabilities over income or assets in a given period.
DEPARTMENT: Basic organizational unit of government, responsible for carrying out related
functions. Each department serves a specific function as a distinct organizational unit of
government within the given fund. Its primary purpose is to facilitate organizational and
budgetary accountability.
DEPRECIATION: Expiration in the service life of capital assets attributable to wear and tear,
deterioration, action of the physical elements, inadequacy, or obsolescence.
DEPARTMENT OF MOTOR VEHICLES (DMV): Also known as Deputy Registrar. City service of
processing state-issued licenses for motor vehicles and equipment, such as license plates and
tabs for cars, trucks, trailers, and recreational vehicles.
DISTINGUISHED BUDGET PRESENTATION AWARDS PROGRAM: A voluntary awards program
administered by the Government Finance Officers Association to encourage governments to
prepare effective budget documents.
ECONOMIC DEVELOPMENT AUTHORITY (EDA): A board responsible for the on-going
Development and redevelopment efforts within the city. This consists of housing and
businesses, including all related public improvements and land acquisitions.
ENTERPRISE FUND: A proprietary fund type used to report an activity for which a fee is charged
to external users for goods or services. In theory, these funds operate in a manner similar to
private business enterprises, where the intent of the governing body is to recover the cost of
delivering services through user fees or charges (Water, Sewer, Liquor, Deputy Registrar, and
Fiber Optic funds).
ESTIMATED MARKET VALUE (EMV): Represents the selling price of a property if it were on the
market. Estimated market value is converted to tax capacity before property taxes are levied.
EXPENDITURE: For accounts kept on the accrual or modified accrual basis of accounting, the
cost of goods received, or services rendered whether cash payment have been made or not.
Where accounts are kept on a cash basis, expenditures are recognized only when the cash
payments for the above purposes are made.
FIBERNET MONTICELLO (FNM): The name of the city-owned fiber optic network, which
provides internet, phone, and cable television to residents and businesses of Monticello.
FIDUCIARY FUND: A fund classification used to report assets held in a trustee or agency
capacity for others and therefore cannot be used in the government’s own programs.
FINES: Revenues from penalties imposed for violation of laws or regulations.
FISCAL POLICY: A government’s policies with respect to revenues, spending, and debt
management as these relate to government services, programs, and capital investment. Fiscal
Policy provides an agreed-upon set of principles for the planning and programming of budgets
and their funding.
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FISCAL YEAR: The budget and accounting year that begins on the first day of January and ends
on the last day of December of each year.
FULL TIME EQUIVALENT (FTE): The number of employee hours (2,080) needed to be equal to
one full time employee. Several part time employees may be combined to make one FTE.
FUNCTION: A group of related activities aimed at accomplishing a major service or regulatory
program for which the government unit is responsible.
FUND: A fiscally independent accounting entity with a self-balancing set of accounts recording
cash and/or other resources together with all related liabilities, obligations, and reserves, which
are segregated for the purpose of carrying on specific activities or attaining certain objectives.
Funds in the government model are classified into three broad categories: governmental,
proprietary, and fiduciary. The most common reason for establishing a fund is to separately
account for restricted-use revenue or to comply with state or federal law.
FUND BALANCE: Governmental fund assets and deferred outflows of resources minus liabilities
and deferred inflows of resources.
GENERAL FUND: Accounts for the general operation of the city and all financial resources
except those to be accounted for in another fund.
GENERAL GOVERNMENT: A set of accounts, to which the expenditures for operating the city
are charged.
GENERAL OBLIGATION (GO) BONDS: Bonds for which the government pledges its full faith and
credit to the repayment of the bond’s principal, including interest.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): A set of accounting rules, standards,
and procedures.
GEOGRAPHIC INFORMATIONS SYSTEMS (GIS): A system that creates, manages, analyzes &
maps all types of data.
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA): A professional association of state,
provincial, and local government finance officers in the United States and Canada.
GOVERNMENTAL ACCOUNTING: The composite of analyzing, recording, summarizing,
reporting, and interpreting the financial transactions of governmental units and agencies.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): A private organization creating
generally accepted accounting principles for state and local governments.
GOVERNMENTAL FUND TYPES: Funds generally used for tax-supported activities. Under
current GAAP, there are five governmental fund types in this: general, special revenue, debt
service, capital projects, and permanent funds. The city has no permanent funds.
GRANT: A contribution of assets by one governmental unit or other organization to another.
HOMESTEAD AND AGRICULTURAL CREDIT (HACA): A form of state-paid property tax relief for
farm property and owner-occupied homes.
HOUSING AND REDEVELOPMENT ACT – SPECIAL BENEFIT LEVY: Property tax levied against the
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city’s taxable market value. The HRA levy limit is .0185% of the taxable market value and must
be used solely for redevelopment purposes.
HOUSING AND REDEVELOPMENT AUTHORITY (HRA): A legally distinct public entity which
undertakes housing, commercial and business redevelopment activities.
IMPROVEMENT BONDS: Bonds payable from the proceeds of special assessments from
properties benefiting from an improvement.
IMPROVEMENTS: Buildings, structures, and other attachments or annexations to land which
are intended to remain so attached or annexed, such as sidewalks, trees, drains, and sewers.
INDUSTIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC): A volunteer organization
appointed by the Monticello City Council which advocates for industrial and economic growth
within the city of Monticello by promoting awareness and communication efforts on behalf of
the business community.
INFRASTRUCTURE: The basic physical and organizational structures and facilities (e.g.,
buildings, roads, bridges) needed for the operation of the city. Infrastructure thus consists of
improvements with significant cost to develop or install that return an important value over
time to the city.
INTERFUND OPERATING TRANSFERS: Amounts transferred from one fund to another, shown as
an expenditure in the originating fund and a revenue in the receiving fund.
INTERGOVERNMENTAL REVENUES: Revenues from other governments in the form of grants,
entitlement, or shared revenues.
INTERNAL SERVICE FUNDS: A proprietary fund type used to report activity that provides goods
or services to other funds, departments, or agencies of the primary government and its
component units, or to other governments, on a cost-reimbursement basis.
LEVY: (Verb) To impose taxes, special assessments, or service charges for the support of
governmental activities. (Noun) Taxes, special assessments, or service charges imposed by a
governmental unit.
LEVY LIMIT: The city’s maximum property tax levy without special authorization as defined by
Minnesota State Statue.
LINE ITEM: A specific item or group of related items defined by detail in a unique account in the
financial records.
LOCAL GOVERNMENT AID (LGA): Intergovernmental revenue from the state to municipalities
to help fund general expenditures.
LONG-TERM DEBT: Debt with a maturity of more than one year after the date of issuance.
MAINTENANCE: The upkeep (repairs and maintenance) of physical properties in condition for
use or occupancy.
MAJOR FUND: For budgetary purposes, a fund whose revenues or expenditures, excluding
other financing sources and uses, constitute more than 10% of the revenues or expenditures of
the appropriated budget.
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MARKET VALUE: An assessor’s estimate of what property would be worth on the open market
if sold. The market value is set on January 2 of the year before taxes are payable.
MARKET VALUE EXCLUSION (MVE): Provision in the state property tax system which exempts
or removes a portion of a property’s market value from property taxes.
MISCELLANEOUS: Revenues or expenditures not classified in any other revenue or expenditure
category.
MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures other than
accrued interest on general long-term debt are recorded at the time liabilities are incurred and
revenues are recorded when received in cash except for material and/or available revenues,
which should be accrued to reflect properly the tax levied, and revenue earned.
MONTICELLO COMMUNITY CENTER (MCC): A beautiful, full-service facility with activities,
programs, and events including a pool & waterslide, fitness center, gymnasium, fitness classes,
climbing wall, indoor play area, and meeting rooms.
NON-MAJOR FUND: For budgetary purposes, a fund whose revenues and expenditures,
excluding other financing sources and uses, are less than 10% of the revenues and expenditures
of the appropriated budget.
NONSPENDABLE FUND BALANCE: Amounts that cannot be spent because they are either (a)
not in spendable form or (b) legally or contractually required to be maintained intact.
Nonspendable fund balances typically include inventory, prepaid items, and land held for
resale.
OBJECT OF EXPENDITURE: Expenditure classifications based upon the types of items purchased
or services obtained. Examples of objects of expenditure include salaries, supplies, contracted
service, etc.
OBJECTIVE: Desired output-oriented accomplishments, which can be measured and achieved
within a given period.
OPERATING BUDGET: A financial plan that estimates revenues and expenditures for a specified
period.
OPERATING EXPENSE: The cost for personnel, materials, and equipment required for a
department to function.
OPERATING REVENUE: Monies received from ongoing operations. Operating revenues are used
to pay for day-to-day services.
ORDINANCE: A formal legislative enactment by the City Council.
PAID TIME OFF (PTO): Compensated time away from work, provided by an employer to
employees for them to use as they see fit.
PAY-AS-YOU-GO BASIS: A term used to describe a financial policy by which capital outlays are
financed from current revenues rather than through borrowing.
PERSONNEL SERVICES: Expenditures for salaries, wages, and fringe benefits of employees.
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PROGRAM: A group of related activities performed by one or more organizational units for the
purpose of accomplishing a function for which the governmental unit is responsible.
PROJECT: A plan of work, job assignment, or task.
PROPERTY TAX LEVY: The total amount to be raised by general property taxes for the purpose
stated in the resolution certified to the county auditor by December 28th. Also see levy.
PROPRIETARY FUNDS: Funds focusing on the determination of operating income, changes in
net position (or cost recovery), financial position, and cash flows. There are two types of
proprietary funds: enterprise funds and internal service funds. For this report, these funds have
the same budgetary basis as governmental funds.
PUBLIC SAFETY: Expenditures related to the protection of persons and property.
PUBLIC WORKS: Expenditures for the maintenance of city property and infrastructure.
REFUNDING BONDS: Bonds issued to redeem outstanding (unpaid) debt.
REIMBURSEMENT: Cash or other assets received as a repayment of the cost of work or services
performed or of other expenditures made for or on behalf of another governmental unit or
department or for an individual, firm, or corporation.
RESERVE: An account which records a portion of the fund balance which must be segregated
for some future use, and which is, therefore, not available for further appropriation or
expenditure.
RESOLUTION: A special or temporary order of a legislative body; an order of a legislative body
requiring less legal formality than an ordinance or statute.
RESOURCES: The actual assets of a governmental unit, such as cash, plus contingent assets such
as estimated revenues applying to the current fiscal year not accrued or collected, and bonds
authorized and not issued.
RESTRICTED FUND BALANCE: Fund balance should be reported as restricted when constraints
placed on the use of resources are either: a) externally imposed by creditors (such as through
debt covenants), grantors, contributors, or laws or regulations of other governments; or b)
imposed by law through constitutional provisions or enabling legislation.
REVENUE: The term designates an increase to a fund's assets which: 1) does not increase a
liability; 2) does not represent a repayment of an expenditure already made; 3) does not
represent a cancellation of certain liabilities; and 4) does not represent an increase in
contributed capital.
REVENUE BOND: A bond that is backed by a particular revenue source such as water user fees,
typically accounted for in proprietary fund types.
SMALL CITIES DEVELOPMENT PROGRAM (SCDP): A program run by the State of Minnesota
which helps cities and counties with funding for housing, public infrastructure and commercial
rehabilitation projects. Monticello operates a special revenue fund to administer funds from
this program.
SPECIAL ASSESSMENT: A compulsory levy made by a local government against certain
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properties to defray part or all the cost of a specific improvement or service which is presumed
to be of general benefit to the public and of special benefit to such properties.
SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA): System used for controlling,
monitoring, and analyzing industrial devices and processes, including for water and sewer
systems.
SPECIAL REVENUE FUND: A governmental fund type used to account for revenue derived from
specific revenue sources that are legally restricted or committed for specific purposes.
TAX CAPACITY: The valuation of property based on market value and statutory class rates. The
property tax for each parcel is based on its tax capacity. The total tax capacity of all individual
parcels is the basis for determining the tax capacity rate.
TAX CAPACITY RATE: Tax rate applied to tax capacity to generate property tax revenue. The
rate is obtained by dividing the property tax levy by the available tax capacity.
TAX INCREMENT FINANCING (TIF): Financing tool originally intended to combat severe blight in
areas, which would not be redeveloped without government subsidies derived from locally
generated property tax revenues.
TAXABLE MARKET VALUE: The market value of a property less the market value exclusion. This
is the value used to calculate property taxes on a property.
TAXES: Compulsory charges levied by a governmental unit for the purpose of financing services
performed for the common benefit.
TOTAL TAX CAPACITY: The amount computed by first totaling the tax capacities of all parcels of
property within a city. Adjustments for fiscal disparities, tax increment, and a portion of the
powerline value are made to this total since not all tax capacity is available for general tax
purposes.
TRUST FUND: A fund consisting of resources received and held by the governmental unit as
trustee, which is to be expended or invested in accordance with the conditions of the trust.
UNASSIGNED FUND BALANCE: This is the residual classification for the General Fund. This is
fund balance that has not been reported in any other classification. The General Fund is the
only fund that can report a positive unassigned fund balance. Other governmental funds would
report deficit fund balances as unassigned.
UNBALANCED BUDGET: A budget in which undesignated fund balance or reserves are used or
increased, to balance estimated revenues to estimated expenditures or expenses.
UNRESTRICTED FUND BALANCE: The portion of a fund’s balance that is not restricted for a
specific purpose and is available for general appropriation.
WORKING CAPITAL: Current assets less current liabilities. The modified accrual balance of
resources in enterprise funds after factoring out long-term assets and liabilities that do not
impact current, near-term operations.
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ACRONYMS
ACFR Annual Comprehensive Financial Report
ARPA American Rescue Plan Act
BCOL Bertram Chain of Lakes
CIP Capital Improvement Plan
CPI Consumer Price Index
CSAH County State Aid Highway
DMV Department of Motor Vehicles
EDA Economic Development Authority
EMV Estimated Market Value
FNM FiberNet Monticello
FTE Full Time Equivalent
GAAP Generally Accepted Accounting Principles
GASB Governmental Accounting Standards Board
GFOA Government Finance Officers Association
GIS Geographic Information System
GO General Obligation (Bonds)
HACA Homestead and Agricultural Credit Aid
HRA Housing and Redevelopment Authority
IEDC Industrial & Economic Development Committee
LGA Local Government Aid
MCC Monticello Community Center
MVE Market Value Exclusion
PTO Paid Time Off
SCADA Supervisory Control and Data Acquisition
SCDP Small Cities Development Program
TIF Tax Increment Financing
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2025
Budget