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2013 Budget
DIRECTORYOFPUBLICOFFICIALS MAYOR&CITYCOUNCIL PositionNameTermExpires Mayor........................................................................ClintHerbst12/31/2014 Council.....................................................................GlenPosusta12/31/2016 Council.....................................................................TomPerrault12/31/2016 Council.....................................................................BrianStumpf12/31/2014 Council......................................................................LloydHilgart12/31/2014 CITYSTAFF CityAdministrator.......................................................JeffO’Neill FinanceDirector.....................................................WayneOberg PublicWorksDirector..............................................BobPaschke CommunityDevelopmentDirector.................AngelaSchumann CommunityCenterDirector.......................................KittyBaltos EconomicDevelopmentDirector(Interim).................JeffO’Neill DeputyCityClerk...................................................CathyShuman HumanResourceManager........................................TracyErgen ChiefBuildingOfficial....................................RonHackenmueller CityEngineer..........................................................BruceWestby FireChief....................................................................SteveJoerg DeputyRegistrarManager.......................................AnnEckman LiquorStoreManager........................................RandallJohnsen StreetSuperintendent..............................................TomMoores ParksSuperintendent................................................TomPawelk Water&SewageSuperintendent...........................MattTheisen JOINTCITY/COUNTY/OUTSIDESTAFF WrightCountySheriff................................................JoeHagerty VeoliaEnvironmentalServices.................................ChuckKeyes FiberConnect........................................................MarkPultusker 1 DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presentedan awardofDistinguishedBudgetPresentationtotheCityofMonticelloforitsannualbudgetforthe fiscalyearbeginningJanuary1,2012.Thecityhasreceivedthisawardforeachbudgetithas preparedforthepastthreeyears. Inordertoreceivethisaward,agovernmentalunitmustpublishabudgetdocumentthatmeetsprogram criteriaasa policydocument,asanoperationsguide,asafinancialplanandasacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuestoconformto programrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityforanotheraward. 2 BUDGETMESSAGE INTRODUCTION Thisbudgetdocumentshouldbeviewedasmorethanjustacollectionoffinancialdata.Inaddition tothefinancialdata,itincludesinformationonthecityofMonticello'sorganization,descriptionsof programsandservices,andavarietyofstatisticsrelatedtoactivityworkloadmeasures. Furthermore,thebudgetisareflectionofthecity'splans,policies,procedures,andobjectives regardingtheservicestobeprovidedinthecomingfiscalyearandfuture. BUDGETPOLICYANDSTRATEGY Thebudgetdocumentwaspreparedafteranalyzingandevaluatingrequestsfromthevarious departments,andrepresentstherequestedfinancialsupportfortheoperationofthecityof Monticellofortheupcomingfiscalyear.Revenueestimatesareconservativeandrealistic.The importanceofasoundrevenuepicturecannotbeoverstated.Revenueestimatesarebasedon historicalandcurrenttrends. ThecityofMonticelloprovidesarangeofservicestothecommunity,includingpoliceandfire protection,streetandparkmaintenance,snowandiceremoval,waterandsewerutilityservices, andadministrativeandplanningservices.Inadditionthecityownsandoperatesacommunity center(MCC),departmentofmotorvehicles(DMV)office,municipaloff-saleliquorstore,anda fiberopticnetwork(FiberNetMonticello).Thelevelofserviceprovidedbytheproposedbudgetis similartothatcurrentlyenjoyedbythecommunity. MAJORINITIATIVES ThecityofMonticelloprovidesafullrangeofmunicipalservices,aslistedinthepreviousparagraph andasauthorizedbystatestatute.Monticelloisblessedwithmanyassets,includingbeautiful setting,anexcellentlocation,arichheritage,andatalentedpopulation.Thecityseekstouse, preserveandenhancetheseassetsinbuildingagreat,affordableplacetolive,workanddo business.Thecitywillfulfillthegoalsbelowtoachievethismission: 1.Continuetomaintainthelowestpossibletaxratewhileprovidingthebestpossibleservice. 2.Continuetodevelopandprovideanunequaledsystemofparks,trailsandrecreational facilities,includingtheuniqueassetsoftheMonticelloCommunityCenter,theMississippi RiverandconversionoftheBertramChainofLakespropertyintoaregionalpark. 3.Continuetomaintainthecitystreetsbyfollowinganannualsealcoatandcrackseal programandoverlayingstreetsbeforetheyarebeyondrepairandneedreplacing. 3 4.Developandadoptalong-rangetransportationplanwhichwillimprovetrafficflowaround andthroughthecity. 5.Implementthedowntownredevelopmentplanwhichwillmaintainadowntownareathat combinesasuccessfulcommercialdistrict,communityidentityandheritageand connectionwiththeMississippiRiver. 6.Seektoexpandthesupplyof"moveup"housingthatallowspeopletoupgradetheirhome withoutleavingthecommunity. 7.Seektodevelopandattractawiderangeofemploymentopportunitieswithagrowing emphasisonhigher-payingjobs. 8.Continuetomaintainhighqualitywaterandsewagetreatmentfacilitiestreatment facilities. 9.Provideunequaledaccesstodatathroughhighspeedinternet,phoneandtelevision throughitsfiberopticnetwork. Citycouncilandstaffusedthesegoalstodirectthedevelopmentofthe2013budget. TOTALBUDGET The2013budgetincludesallthefundsmaintainedbythecity.Eachfundisresponsibletoaccount foraparticularactivityoractivities.Eachfundtypewillbediscussedwithinthisletterandinthe budgetdocument. Thefollowingcomparestheadopted2012and2013budgets: Fund-type 2012 2013 2012 2013 GeneralFund6,748,398$6,786,969$6,748,398$6,786,969$ SpecialRevenueFunds4,937,6104,451,5905,883,8984,735,065 DebtServiceFunds5,800,9365,601,0246,293,20216,911,117 CapitalProjectFunds9,708,1882,522,2359,194,7195,317,806 EnterpriseFunds10,022,07115,726,87013,684,01615,866,555 Total37,217,203$35,088,688$41,804,233$49,617,512$ RevenuesExpenditures TotalBudget Totalrevenuesdeclined6%andtotalexpendituresincreased19%.GeneralFundrevenuesand expendituresincreased.6%.Specialrevenueexpendituresdeclinedwithcompletionofcapital projectsinthecommunitycenterfund.Debtserviceexpendituresincreasedtoreflectcross-over refundingofdebt.Capitalprojectfundswillincurlowerexpendituresbecauseofdeclining 4 resourcesavailableforsuchprojects.Enterprisefundexpendituresincreasedbecauseofexpected, debt-financedimprovementstoupgradethesewagetreatmentplant. Thefollowinggraphsdisplaytherevenuesandexpendituresattributabletoeachfund-typeinthe 2013Budget: GeneralFund 19% Special Revenue Funds 13%DebtService Funds 16% Capital ProjectFunds 7% Enterprise Funds 45% 2013REVENUESBYFUND-TYPE General Fund 14% Special Revenue Funds 9% DebtService Funds 34% Capital ProjectFunds 11% Enterprise Funds 32% 2013EXPENDITURESBYFUND-TYPE 5 PROPERTYTAXES ThestateofMinnesotahasgrantedlocalmunicipalitiestheauthoritytolevytaxestofund operationsanddebtpayments.ForthecityofMonticello,thepropertytaxlevyaccountsforover 80%oftheGeneralFundrevenuesand26%ofspecialrevenuefundsrevenues.Thedebtservice funds,in2013,willlevy$1,190,000inpropertytaxesfordebtservicepayments,whichisbasedon originalbondissuancecashflows.Reservesindebtservicefundswillalsocontributetothecity's debtpayments.For2013,thecity'spropertytaxlevywillincreaseto$7,900,000,anincreaseof $50,000(.6%).Inthepast,thecityhasusedreservestofundoperationsanddebtpaymentinstead ofincreasingpropertytaxes. Thefollowingtableprovidesahistoricalviewofthetaxcapacityvalue,taxcapacityrateandtax levy: TaxCapacityCapacityTaxCapacityRateTaxLevy YearValue%ChangeRate%ChangeLevy%Change 200411,141,052$7.7%62.452-4.7%6,957,915$2.6% 200511,840,0006.3%58.760-5.9%6,957,9150.0% 200613,224,14411.7%51.040-13.1%6,750,000-3.0% 200715,257,99615.4%42.601-16.5%6,500,000-3.7% 200816,190,5976.1%46.94210.2%7,600,00016.9% 200916,783,8433.7%46.191-1.6%7,750,0002.0% 201016,691,266-0.6%45.822-0.8%7,648,272-1.3% 201116,429,431-1.6%46.7292.0%7,677,309-0.9% 201215,771,688-4.0%49.7736.5%7,850,0002.2% 201318,705,41418.6%42.234-15.1%7,900,0000.6% Undercontract,theWrightCountyassessorvaluesallpropertieslocatedwithinthecity’scorporate limits.Thismarketvalueisappliedtotheclassratesassignedbythestatetodetermineaproperty's taxcapacity.Thecountyestimatesthecity'staxcapacityfortaxespayablein2013at$18,705,414 whichisa18.6%increase.Thecity'spropertytaxlevyisdividedbythetaxcapacitytodetermine thecity'staxcapacityrate.Thetaxcapacityrateisappliedtoeachproperty'staxcapacityto determinethetaxthecitywillcollectbeforeanycreditsareapplied.For2013,thecity'staxrateis expectedtochangefrom49.773%to42.234,a15.1%decline. Thecityatthistimedoesnothavetheauthoritytolevyorcollectlocalsalestaxesorothertypesof taxesunderthestate'staxsystem. PERSONNELSERVICES Thecity's2013budgetdoesnotincludeanynewpositions,butdoesincludeastepincreasefor employeesstillmovingupthepayscalesystem.Nocost-of-livingincreaseisinthebudget.Inthe pastemployeeswereeligibleforaonestepincreasebasedonsatisfactoryperformance.In2011 6 thecityfrozeallwagesat2010wagelevels.PublicworksandFiberNetemployeesbelongtoa union.Theunion’scollectivebargainingagreementexpiresMarch31,2013. Healthinsurancepremiumsincreasedapproximately9%for2013.Employeeshaveachoice betweentwohealthplans:traditionalandahighdeductiblewithHSA.Thecityreducedits2013 contributiontowardsthetraditionalplantoencouragemoreparticipationtothehighdeductible plan.Staffwillcontinuetoexplorewaystoreducefuturepremiumincreasetoboththecityandits employees. Therearenonewpositionsinthe2013budget.Onepositionwasconvertedfromfull-timetopart- time.Finally,changesinFiberNetoperationsmayresultinfeweremployees. ThecontributionratestothePublicEmployeesRetirementAssociation(PERA)for2013forboth employerandemployeeswillremainthesame:7.25%ofwagesforemployerand6.25%for employee.ThebudgetalsoestimatesFICAandMedicaretaxesat6.20%and1.45%respectivelyfor 2013. Theremainderofthissectionwilldescribethemajorinitiativesfor2013foreachofthefundtypes andtheiractivities. GENERALFUND Expenditures The2013budgetincreased.6%overthe2012budget.Excludingoperatingtransfers,2013 appropriationsare83%of2009expenditures.Morerecently,2013appropriationsare3%greater than2011expenditures.Thefollowingscheduledisplays2013budgetedGeneralFundexpenditures bydepartmentcomparedwiththeprioryears: Department 2012 2013 %Change GeneralGovernment1,499,715$1,450,737$-3.3% PublicSafety1,743,2991,782,7072.3% PublicWorks2,430,1242,467,1501.5% Recreation912,887908,285-0.5% Unallocated162,373178,0909.7% OperatingTransfers-80,000--- Total6,748,398$6,786,969$0.6% 2013GeneralFundExpenditures 7 General Government 21% PublicSafety 26% PublicWorks 36% Recreation 14% Other 3% GeneralFundExpenditures Thepublicworksdepartmentisthelargestdepartmentintermsofbudgetedexpendituresandthe streetandalleysactivitybudgetisthelargestactivitywithinthedepartment.Thebudgetforthe streetandalleysactivitywasincreased3.6%for2013.Thisincreaseisnecessarytofundlargerseal coatandcracksealprojects.Capitaloutlayincreasedtoallowfortheacquisitionofequipment Streetlightingincreasedtoreflecttheneedforgreaterresourcesinthisactivity.Theincreasewas offsetwithanincreaseinfranchisefeesattributabletotheGeneralFund. Aswithalldepartments,personnelservicesincreasedwithwageandbenefitinflation.Overall,the publicworksdepartmentincreasedby1.5%. Thesecondlargestdepartmentbasedonexpendituresisthepublicsafetydepartment.Activities budgetedinthepublicsafetydepartmentincludelawenforcement,fire,buildinginspections,civil defense,NationalGuard,andanimalcontrol.ThecitycontractswiththeWrightCountySheriff's departmentforlawenforcement.The2013contractincludesanincreaseinthehourlyrateat currentservicelevels. Thefireactivitybudgetpaysfortheoperationsofthecity'spaidvolunteerfiredepartment.The suppliesbudgetincreasedwiththeallocationofequipmentpurchasestosmalltools&equipment. Thepublicsafetydepartmentbudgetincreased2.3%in2013. Generalgovernmentdecreasedby3.3%.Additionalequipmentpurchaseswereoffsetbydecreases inelectionsandfinance.In2013,therearenoplannedelectionsandfinancereduceditsstaffingby one-fourthoffull-timeequivalent. 8 Recreationandculturedeclinedby.5%in2013,withitslargestactivity—parkoperations—declining by1%.Departmentexpendituresremainstablewithnonewmajorinitiativesplannedfor2013. Includingservicesforpolice,assessor,andlegalservices,otherservicesandchargesaccountfor 49%ofGeneralFund’sappropriations.Appropriationsforpersonnelservicesfollowcloselywith 41%ofthetotal.Therewerenosignificantchangesinexpendituresforsixappropriation classificationsfor2013. Thefollowingtableandgraphprovideperspectiveonexpendituresandotherusesforthevarious GeneralFundclassificationsinthe2013budget: Classification 2012 2013 %Change PersonnelServices2,771,340$2,769,569$-0.1% Supplies504,900507,6750.5% OtherServices&Charges3,363,0083,324,666-1.1% CapitalOutlay109,150105,059-3.7% OperatingTransfers-80,000--- Total6,748,398$6,786,969$0.6% 2013GeneralFundAppropriations Personnel Services 41% Supplies 7% Capital Outlay 2% Other Services& Charges 49% Operating Transfers 1% ExpendituresandOtherUses 9 Revenues TherevenuesandothersourcestosupportGeneralFundexpendituresandotherusesareclassified asfollows: Classification 2012 2013 %Change PropertyTaxes5,456,248$5,540,000$1.5% Franchise&OtherTaxes200,500236,50018.0% Licenses&Permits241,400270,98012.3% IntergovernmentalRevenues252,440284,50912.7% ChargesforServices355,255272,610-23.3% Fines&Forfeits150100-33.3% SpecialAssessments-300--- Miscellaneous242,405181,970-24.9% OperatingTransfers----- Total6,748,398$6,786,969$0.6% 2013GeneralFundRevenuesandOtherSources Whilethetaxlevyincreased.6%overall,theGeneralFund’sportionofitgrewby1.5%.Licenses& permitsreflectananticipatedreboundinresidentialdevelopment.Franchiseandothertaxes increasedbecausethecityallocatingthosetaxesbetweenfundsin2013.Intergovernmental revenuesarerecoveringslightlyalongwiththestate’sfinances.Chargesforservicesdeclinedwith lossofatownshipforfireprotectionservices.Miscellaneousrevenuewillshowadeclinebecauseof lowerinvestiblefunds.Oneotherfactor:prioryearreturnswereboostedbygainsinmarketvalue. Thepropertytaxlevygeneratesover80%oftheGeneralFundrevenues.Otherthanfranchisefees, thecitydoesnothavetheabilitytoimposeothertaxes,suchaslocalsalestaxesorincometaxes. Therefore,thecitywillcontinuetobedependentonpropertytaxrevenueasitsmajorsourceof futurerevenues. SPECIALREVENUEFUNDS ThecityofMonticellocurrentlyoperatesspecialrevenuefundsforeconomicdevelopment,park andpathway,communitycenter,anddeputyregistraractivities.Specialrevenuefundsalsoinclude theMinnesotaInvestmentFund,butitwilllikelyseeverylittleactivityin2013. LiketheGeneralFund,thespecialrevenuefundbudgetsaresetataleveltomaintainservices.A portionofthetaxlevysupportscommunitycenteroperationsanddebtservice.Taxincrements supporteconomicdevelopmentactivitiesbuttheiruseisgenerallyrestrictedtospecificareas.In addition,ParkandPathwayDedicationFundhaslessrevenuescominginbecauseoflessnewfee- payingdevelopment.IntheEconomicDevelopmentFund,taxincrementsdeclinedfrom decertificationoftaxincrementdistrictsorparcelswithindistricts.Completionofthecommunity centerprojectresultedinlessoperatingtransfersneededfromotherfundstosupporttheproject. Thebulkofthe2013operatingtransfersinwillgotoacquireBertramChainofLakesproperty. 10 Thefollowingtablesdisplaythechangeinrevenuesandothersourcesandthechangein expendituresandotherusesforspecialrevenuefundsin2013: Classification 2012 2013 %Change PropertyTaxes1,150,000$1,170,000$1.7% TaxIncrements881,630681,240-22.7% ChargesforServices1,575,6251,662,7505.5% Miscellaneous230,355157,600-31.6% OperatingTransfers1,100,000780,000-29.1% Total4,937,610$4,451,590$-9.8% 2013SpecialRevenueFundRevenues&OtherSources Classification 2012 2013 %Change PersonnelServices1,189,254$1,360,036$14.4% Supplies235,900242,0502.6% OtherServices&Charges599,291466,111-22.2% CapitalOutlay2,623,8691,017,465-61.2% OperatingTransfers1,235,5841,649,40333.5% Total5,883,898$4,735,065$-19.5% 2013SpecialRevenueFundExpenditures&OtherUses DEBTSERVICEFUNDS Thecity'sdebtservicefor2013is$6,107,642,excludingthe$10,803,475escrowpaymentto redeem2005debt.Fundingfordebtservicecomesfromspecialassessments,taxincrements, propertytaxesandtransfersfromthethreeaccessfundsandtheWaterFund.Additionalresources maybeneededfordebtservicebecausetwoparcelswith$1.7millioninspecialassessmentsare delinquent.Reservesinthefundsaffectedbythedelinquentassessmentswillbedrawndownuntil otherresourcesbecomeavailable.Theoutstandingdebtfordebtservicefundsis$33,472,403.The city'sbondratingfromMoody’sInvestorsServicesisan"A2". CAPITALPROJECTFUNDS Thebudgetforcapitalprojectfundsarebasedonthe2013projectexpenditureslistedinthecity's five-yearcapitalimprovementplan.Thecity'sfive-yearcapitalimprovementplanisincludeina latersectionofthisreport.At$1.7million,themostexpensiveprojectinthe2013budgetisthe7th Streetextensionproject.Theextensionprojecthasaverityoffundingsources,including$455,000 fromclosingaTIFdistrictintheEconomicDevelopmentFund. 11 ENTERPRISEFUNDS Totalenterpriserevenuesandothersourcesareestimatedat$15,726,870for2013.Thelargest componentofthistotalis$6.1millionindebtproceedsforsewagetreatmentplantupgrades. Chargesforservicesareexpectedtobelessthanpreviousbudgetprojectionsthatwentunrealized intheFiberOpticsFund.TheLiquorFundwilltransfer$220,000tosupportoperationsintheFiber OpticsFund. Classification 2012 2013 %Change SaleofGoods4,418,500$4,461,500$1.0% Licenses&Permits3,7003,7000.0% ChargesforServices5,215,5594,567,100-12.4% SpecialAssessments150,000150,0000.0% Miscellaneous234,312224,570-4.2% OperatingTransfers-220,000--- DebtProceeds-6,100,000--- Total10,022,071$15,726,870$56.9% 2013EnterpriseFundRevenues&OtherSources Classification 2012 2013 %Change PersonnelServices1,577,288$1,577,521$0.0% Supplies3,961,2713,945,635-0.4% OtherServices&Charges3,746,1602,285,799-39.0% CapitalOutlay1,680,9607,304,100334.5% DebtService1,768,337120,000-93.2% OperatingTransfers950,000633,500-33.3% Total13,684,016$15,866,555$15.9% 2013GeneralFundAppropriations Personnelservicesandsupplieswillseelittlechangein2013.Thedeclineinotherservicesand chargesislargelyattributabletochangesinFiberNetoperations.Loweroperatingtransferstoother fundsmeanslesssupportforothercityprojects.Budgeteddebtserviceisexpectedtobe significantlylessbecausetheFiberOpticsFundisdefaultingonitsdebt. FUNDBALANCES In2013,cityfundbalancesareexpectedtostabilizeinitsmainoperatingfunds.In2012,fund balanceswereusedtoretireinterfundloansandtopayforcapitalprojects.Variousloansbetween fundstotaledover$6million.TheGeneralFundtransferredover$2milliontotheCapitalProject Fundand$300,000totheFiberOpticsFundtoretireinterfunddebt.Likewise,theLiquorFund transferredover$3milliontotheFiberOpticsFundtoretirethesame.Variousdebtservicefunds 12 willseedeclinesasaresultofdelinquentspecialassessments.Asplanned,thedebtservicefund supportingcommunitycenterdebtservicewillalsoseeadeclinein2013. Totalexpendituresexceedtotalrevenuesby$14.5millioninthe2013budget.However,the differenceincludes$10.8millioninescrowpaymentstoredeemrefundeddebt.Otherwise,the declineinfundbalancesislargelyattributabletocapitalprojectfunds. DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presenteda DistinguishedBudgetPresentationAwardtotheCityofMonticello,Minnesotaforitsannualbudget forthefiscalyearbeginningJanuary1,2012.Inordertoreceivethisaward,agovernmentalunit mustpublishabudgetdocumentthatmeetsprogramcriteriaasapolicydocument,asan operationsguide,asafinancialplan,andacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuesto conformtoprogramrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityfor anotheraward. CONCLUSION Conservationofcityfinancialresourcescontinuestobeaveryimportantobjective.Thebudgetis theprimetoolinmakingsurelimitedresourcesarewiselyutilized.Itismybeliefthatthe2013 budgetallowsthecitytodeliverexcellentmunicipalservicesinacosteffectiveandefficient manner. The2013budgetisaproductofcollectiveeffortsbythecitycouncil,staffandvariousother stakeholders.Theircommitment,goodjudgmentandexpertisewasinvaluabletothebudget process. Sincerely, JeffO’Neill CityAdministrator WayneW.Oberg FinanceDirector 13 COMMUNITY,DEMOGRAPHIC,ANDSTATISTICALINFORMATION ThecityofMonticellowasorganizedasamunicipalityin1856.ThecityofMonticelloislocatedapproximately 45milesnorthwestoftheMinneapolis-St.PaulmetropolitanareaalongtheI-94corridorinWrightCounty. The2010U.S.CensusestimatedMonticello'spopulationat12,759andthecityencompassesanareaof8.94 squaremiles.Thecityoperatesunderastatutoryformofgovernment.Themayorandfourcouncilors (togetherknownas"citycouncil")governthecity.Thecouncilorsareeachelectedtofour-yeartermsandthe mayoratwo-yearterm.Themayorpresidesoverandisavotingmemberofthecitycouncil.Themayoristhe chiefauthorityforadministeringcitygovernmentandappointsdepartmentheads,variousboardmembers andcommissionmembers.Thecitycouncilisthelegislativebodyandmeetsregularlytwiceamonth.Thecity council'smainresponsibilitiesaretoappropriatefunds,setsalaries,adoptordinances,andapprovebudgets. Monticellohasavariedbusinesscommunitywithahealthymixofretailandmanufacturing.Thecitywashit hardbytherecessionandisslowlyrecovering.Cityunemploymentratesaresimilartothatofthestate,but thestate’sratehasbeenslightlybetterlately(seethefollowingtable). AverageEmployment Year WrightCounty WrightCounty StateofMinnesota 200356,5425.1%4.8% 200458,8254.8%4.6% 200560,8254.3%4.1% 200661,9674.4%4.1% 200762,8265.1%4.6% 200862,6416.2%5.4% 200962,1149.2%8.0% 201063,4377.3%6.8% 201163,2566.9%7.4% 201265,6006.2%5.4% HISTORICALEMPLOYMENT/UNEMPLOYMENTDATA (Ratesarenotcompiledforindividualcommunitieswithincounties) AverageUnemployment Hometooneofthetwostatenucleargenerationplants,Monticello’slargestemployerisXcelEnergy.Agri- giantCargillalsomaintainsastrongpresenceinthecity.Thefollowingtableliststhetoptenemployersinthe community. Employer Employees XcelEnergy(NorthernStates)2,000 ISDNo.882(Monticello)544 NewRiverMedicalCenter500 WalmartSupercenter325 CargillKitchenSol.(SunnyFresh)250 CubFoods180 HomeDepot160 UltraMachineCorporation140 StandardIron&WireWorks100 CityofMonticello100 TOPTENCITYEMPLOYERS 14 Monticello’spopulationandhouseholdsare.2%ofstate’stotalforbothmeasures.WithaWal-Mart,Target, andHomeDepot,itisnosurprisethatretailsalesperpersonarehigherthanthestateaverage.Thefollowing tablecontainsselectedfactsonthecity: PeopleQuickFactsMonticelloMinnesota Population,2011estimate12,9355,347,299 Population,201012,7595,303,925 Population,percentchange,April1,2010toJuly1,20111.4%0.8% Personsunder5years,percent,201010.1%6.7% Personsunder18years,percent,201030.8%24.2% Persons65yearsandover,percent,20109.5%12.9% Femalepersons,percent,201050.8%50.4% Whitepersons,percent,2010(a)92.6%85.3% Totalnumberoffirms,20071,258496,657 Retailsalespercapita,2007$26,337$13,751 Landareainsquaremiles,20108.9479,626.74 Personspersquaremile,20101,427.266.6 Housingunits,20104,9732,347,201 Homeownershiprate,2007-201172.8%73.6% Housingunitsinmulti-unitstructures,percent,2007-201121.4%21.6% Medianvalueofowner-occupiedhousingunits,2007-2011$180,200$201,400 Households,2007-20114,6892,094,265 Personsperhousehold,2007-20112.632.46 Percapitamoneyincomeinthepast12months(2011dollars)$27,052$30,310 Medianhouseholdincome,2007-2011$66,748$58,476 Thenuclearplantaccountsforapproximately40%ofcity’smettaxcapacity.Xcel’staxcapacityandthe council’sconservativetaxlevyphilosophyaremainreasonsthecitytaxcapacityrateisthelowestinWright County.Indeed,recentupgradestotheXcelplantresultedina15.1%declineinMonticello’staxratefor 2013.Thetaxbaseisaboutone-thirdresidentialandtwo-thirdscommercial.Thefollowingtableliststhetax ratesforeachcityinWrightCounty,Minnesota: 200920102011201220132012-132012-13 CityTaxRateTaxRateTaxRateTaxRateTaxRateChangeChange% CityofMonticello46.19145.82246.72949.77342.234-7.539-15.1% CityofSt.Michael28.53330.58134.42139.11043.9174.80712.3% CityofOtsego26.97229.34234.01441.45446.1604.70611.4% CityofBuffalo28.76435.98938.44847.07651.8344.75810.1% CityofAlbertville32.93936.70541.93346.64551.9245.27911.3% CityofHanover38.26640.92444.39848.71952.3983.6797.6% CityofMapleLake46.56246.25145.90554.24256.2832.0413.8% CityofRockford43.89946.14250.35354.42759.4875.0609.3% CityofDelano35.04042.42046.61052.58759.7467.15913.6% CityofDayton43.80450.86748.56757.81763.9216.10410.6% CityofMontrose38.71642.68147.73755.86467.20411.34020.3% CityofAnnandale42.02548.48354.65864.88673.1138.22712.7% CityofHowardLake44.43446.60653.82368.77874.7185.9408.6% CityofCokato54.19559.93863.49877.09480.9413.8475.0% CityofClearwater63.72268.42775.26386.24487.5521.3081.5% CityofWaverly60.49666.15568.75982.56290.8428.28010.0% CityofSouthHaven82.57285.33093.540117.591130.98113.39011.4% CITYTAXRATESINWRIGHTCOUNTY,MINNESOTA 15 Monticellogrewbyapproximatelyone-thirdoverthelasttenyears.Thecityhasampleundeveloped commercialandresidentialrealestateandispositionwelltobenefitfrommoreurbanflightfromtheTwin Cities.Accesstomajortransportationcorridorsmakesthecityanideallocationforfuturegrowth.The followingtableincludespopulationstatisticsoverthelasttenyears: YearPolulationChange 20039,776937 200410,211435 200510,662451 200611,136474 200711,253117 200811,366113 200911,476110 201011,50125 201112,7591,258 201212,935176 TheabovestatisticsreflectamoreaccurateCensuscount,whichisthe2011total.Theothercountsare fromthestatedemographer. 16 MAPOFMONTICELLO,MINNESOTA 17 COREVALUES Thisdocumentispreparedbythecity’sfinancedepartment.Thecorevaluesofthedepartmentservea guideforthewaywedeliverinternalandexternalcustomerservices.Thesecorevaluesarehowwe conductourselvesandwhatcreatethecultureofourdepartment. Competent Beopen,hardworking,reliable,innovative,and accountabletothepublic. Courteous Workunselfishlyinapositive,politeandprofessional mannerforourcommunityanditscitizens. Cooperative Leadbyexampleandworktogether toachievethebestresult. 18 VISION,MISSION,ANDGOALS Vision:Monticello,Minnesota:Agreat,affordableplacetolive,workand dobusiness. Mission:Toenhancethequalityoflifethroughexcellenceinpublicservice. Goals: 1.Provideexcellentpublicserviceswhichareresponsivetothe communityandwithinavailableresources. 2.Buildastrongteamofelectedofficials,staffandcitizens. 3.Anticipatefutureservicedemandsandresource deficienciesandbeproactiveinaddressingthem. 4.Developavisuallyappealingandbusinessfriendlycommunity. 5.Committoastrongfinancialposition. 6.Strivetodoourbestwhenencounteringfuturechallenges. 19 PLANNINGPROCESSES Thecityplansforthelong-termneedsofourcommunitythroughanumberofeffortsandstudies. Thesedocumentsareusuallydevelopedbyconsultantsandstaff,withnumerouspublichearings andadvisoryboardmeetingspriortotheirformaladoptionbytheCityCouncil.Onceadopted,we workdiligentlytoimplementtherecommendationsandchangesoutlinedintheplans.Hereisthe statusofourprimaryplanningdocuments: Plansforserviceprovision,facilityexpansion&maintenance: 1.MonticelloComprehensivePlan-Adopted2008. 2.TransportationPlan-Adopted2011. 3.Parks&PathwaysPlan-Adopted2011. 4.EmbracingDowntownPlan–Adopted2012 5.EconomicDevelopmentStrategicPlan-Pending 6.NaturalResourceInventory&Assessment-Adopted2008. 7.BertramChainofLakesRecreationPlan–Adopted2011. 8.StormWaterPollutionPreventionProgram-Adopted2007. 9.ComprehensiveWaterResourceManagementPlan-Updated2006. 10.PlanRequirementsandDesignGuidelines-Updated2008. 11.GeneralSpecificationsandStandardDetailPlatesforStreetandUtilityConstruction- Updated2009. PlansforFacilityandInfrastructureMaintenance: 1.WasteWaterTreatmentFacilityBiosolidsDewatering,EnergyEfficiency,Headworksand SiteImprovementsFeasibilityReport–Adopted2012. 2.OverallStreetReconstructionProgram–Adopted2004,updatepending. 3.Area5StreetReconstructionFeasibilityReport–Pending FinancialPlans: 1.AnnualBudget-AdoptedeachDecember. 2.CapitalImprovementsPlan-Updatedandadoptedeachyear;mostrecentlyfor2013- 2017. 20 FINANCIALPOLICIES Theoverallgoalofthecity'sfinancialpoliciesistoestablishandmaintaineffectivemanagementofthecity's financialresources.Formalpolicystatementsandmajorobjectivesprovidethefoundationforachievingthis goal.Accordingly,thissectionoutlinesthepoliciesusedinguidingthepreparationandmanagementofthe city'soverallbudgetandthemajorobjectivestobeaccomplished.Inaddition,therationalewhichledtothe establishmentofthefiscalpolicystatementsisalsoidentified. BudgetDevelopment&Administration 1.Acomprehensiveannualbudgetwillbepreparedforallfundsexpendedbythecity. Thecitycouncilshallhavefullauthorityoverthefinancialaffairsofthecityandshallprovide forthecollectionofallrevenueandotherassets,theauditingandsettlementofaccounts,andthe safekeepinganddisbursementofpublicmoniesandintheexerciseofasounddiscretionshallmake appropriationsforthepaymentofallliabilitiesandexpenses.Inclusionofallfundsinthebudget enablesthecouncil,theadministration,andthepublictoconsiderallfinancialaspectsofcitygovernment whenpreparing,modifying,andmonitoringthebudget,ratherthandealwiththecity'sfinancesona "piecemeal"basis. 2.Thebudgetwillbepreparedinsuchamannerastofacilitateitsunderstandingbycitizensand electedofficials. Oneofthestatedpurposesofthebudgetistopresentapictureofthecitygovernmentoperations andintentionsfortheyeartothecitizensofMonticello.Presentingabudgetdocumentthatis understandabletothecitizensfurthersthegoalofeffectivelycommunicatinglocalgovernmentfinance issuestobothelectedofficialsandthepublic. 3.Budgetaryemphasiswillfocusonprovidingthosebasicmunicipalserviceswhichprovidethe maximumlevelofservices,tothemostcitizens,inthemostcosteffectivemanner,withdue considerationbeinggiventoallcosts--economic,fiscal,andsocial. AdherencetothisbasicphilosophyprovidesthecitizensofMonticelloassurancethatits governmentandelectedofficialsareresponsivetothebasicneedsofthecitizensandthatitscity governmentisoperatedinaneconomicalandefficientmanner. 4.Thebudgetwillprovideforadequatemaintenanceofcapital,plant,andequipmentand fortheirorderlyreplacement. Allgovernmentalentitiesexperienceprosperoustimesaswellasperiodsofeconomicdecline.In periodsofeconomicdecline,propermaintenanceandreplacementofcapital,plant,andequipmentis generallypostponedoreliminatedasafirstmeansofbalancingthebudget.Recognitionoftheneedfor adequatemaintenanceandreplacementofcapital,plant,andequipment,regardlessoftheeconomic conditions,willassistinmaintainingthegovernment'sequipmentandinfrastructureingoodoperating condition. 21 5.Thecitywillavoidbudgetarypracticesthatbalancecurrentexpendituresattheexpenseof meetingfutureyears'expenses. Budgetarypracticessuchaspostponingcapitalexpenditures,accruingfutureyears'revenues,or rollingovershort-termdebtarebudgetarypracticeswhichcansolveshort-termfinancialproblems. However,theycancreatemuchlargerfinancialproblemsforfutureadministrationsandcouncils. Avoidanceofthesebudgetarypracticeswillassurecitizensthatcurrentproblemsarenotsimplybeing delayedtoafutureyear. 6.Thecitywillgivehighestpriorityintheuseofone-timerevenuestothefundingofcapital assetsorothernon-recurringexpenditures. Utilizingone-timerevenuestofundon-goingexpendituresresultsinincurringannual expenditureobligations,whichmaybeunfundedinfutureyears.Usingone-timerevenuestofund capitalassetsorothernon-recurringexpendituresbetterenablesfutureadministrationsand councilstocopewiththefinancialproblemswhentheserevenuesourcesarediscontinued,since thesetypesofexpenditurescanmoreeasilybeeliminated. 7.Thecitywillmaintainabudgetarycontrolsystemtohelpitadheretotheestablishedbudget. Thebudgetpassedbythecouncilestablishesthelegalspendinglimitsforthecity.A budgetarycontrolsystemisessentialinordertoinsurelegalcompliancewiththecity'sbudget. 8.Thecitywillexercisebudgetarycontrol(maximumspendingauthority)throughcitycouncil approvalofappropriationauthorityforeachappropriatedbudgetunit. Exercisingbudgetarycontrolforeachappropriatedbudgetunitsatisfiesrequirementsofstate law.Italsoassiststhecouncilinmonitoringcurrentyearoperationsandactsasanearlywarning mechanismwhendepartmentsdeviateinanysubstantivewayfromtheoriginalbudget. 9.Reportscomparingactualrevenuesandexpenditurestobudgetedamountswillbe preparedmonthly. Thecity'sbudgetisineffectivewithoutasystemtoregularlymonitoractualspendingand revenuecollectionswiththoseanticipatedatthebeginningoftheyear.Monthlyreportscomparing actualrevenuesandexpenditurestobudgetamountsprovidethemechanismforthecouncilandthe administrationtoregularlymonitorcompliancewiththeadoptedbudget. 10.StateRequirement:Truth-in-Taxation TheTruthinTaxation(TNT)lawrequiresthecitytoholdaseriesofpublichearingsinorderto presenttheproposedlevyandbudget,andtoprovideanopportunityforthepublictocommentand makerecommendations.Thecity’sproposedlevyhastobecertifiedtothecountyauditorby September15th.ThefinallevyhastobecertifiedbyDecember29th. 22 RevenueCollection 1.Thecitywillseektomaintainadiversifiedandstablerevenuebase. Acitydependentuponafewvolatilerevenuesourcesisfrequentlyforcedtosuddenlyadjusttax ratesoralterexpenditurelevelstocoincidewithrevenuecollections.Establishmentofadiversifiedand stablerevenuebase,however,servestoprotectthecityfromshort-termfluctuationsinanyonemajor revenuesource. 2.Thecitywillestimaterevenuesinarealisticandconservativemanner. Aggressiverevenueestimatessignificantlyincreasethechancesofbudgetaryshortfalls occurringduringtheyear--resultingineitherdeficitspendingorrequiredspendingreductions. Realisticandconservativerevenueestimates,ontheotherhand,willservetominimizethe adverseimpactofrevenueshortfallsandwillalsoreducetheneedformid-yearspending reductions. 3.Thecitywillpursueanaggressivepolicyofcollectingrevenues. Anaggressivepolicyofcollectingrevenueswillhelptoinsurethecity'srevenueestimatesare met,alltaxpayersaretreatedfairlyandconsistently,anddelinquenciesarekepttoaminimum. 4.Thecitywillaggressivelypursueopportunitiesforfederalorstategrantfunding. Anaggressivepolicyofpursuingopportunitiesforfederalorstategrantfundingprovidescitizens assurancethatthecityisstrivingtoobtainallstateandfederalfundstowhichitisentitled--thereby reducingdependenceuponlocaltaxpayersforthesupportoflocalpublicservices. 5.Userfeesandchargeswillbeused,asopposedtogeneraltaxes,whendistinctbeneficiary populationsorinterestgroupscanbeidentified. Userfeesandchargesarepreferabletogeneraltaxesbecauseuserchargescanprovideclear demandsignalswhichassistindeterminingwhatservicestooffer,theirquantity,andtheirquality.User chargesarealsomoreequitable,sinceonlythosewhousetheservicemustpay--therebyeliminatingthe subsidyprovidedbynonuserstousers,whichisinherentingeneraltaxfinancing. 6.Userfeeswillbecollectedonlyifitiscost-effectiveandadministrativelyfeasibletodoso. Userfeesareoftentimescostlytoadminister.Priortoestablishinguserfees,thecoststo establishandadministerthefeeswillbeconsideredinordertoprovideassurancethatthecity's collectionmechanismsarebeingoperatedinanefficientmanner. ExpendituresandPayments 1.On-goingexpenditureswillbelimitedtolevelswhichcanbesupportedbycurrentrevenues. Utilizationofreservestofundon-goingexpenditureswillproduceabalancedbudget,however,this practicewilleventuallycauseseverefinancialproblems.Oncereservelevelsaredepleted,thecitywould 23 faceeliminationofon-goingcostsinordertobalancethebudget.Therefore,thefundingofon-going expenditureswillbelimitedtocurrentrevenues. 2.Minorcapitalprojectsorrecurringcapitalprojects,whichprimarilybenefitcurrentresidents, willbefinancedfromcurrentrevenues. Minorcapitalprojectsorrecurringcapitalprojectsrepresentrelativelysmallcostsofanon-going nature,andtherefore,shouldbefinancedwithcurrentrevenuesratherthanutilizingdebtfinancing.This policyalsoreflectstheviewthatthosewhobenefitfromacapitalprojectshouldpayfortheproject. 3.Majorcapitalprojects,whichbenefitfutureaswellascurrentresidents,willbefinancedwith currentrevenuesaswellasotherfinancingsources(e.g.debtfinancing). Thispolicyreflectstheviewthatthosewhobenefitfromacapitalprojectshouldpay fortheproject. 4.Majorcapitalprojects,whichbenefitfutureresidents,willbefinancedwithotherfinancing sources(e.g.debtfinancing). Majorcapitalprojectsrepresentlargeexpendituresofanon-recurringnaturewhichprimarily benefitfutureresidents.Debtfinancingprovidesameansofgeneratingsufficientfundstopayforthecosts ofmajorprojects.Debtfinancingalsoenablesthecostsoftheprojecttobesupportedbythosewho benefitfromtheproject,sincedebtservicepaymentswillbefundedthroughchargestofutureresidents. 5.Constructionprojectsandcapitalpurchasesof$10,000ormorewillbeincludedintheCapital ImprovementProgram(CIP);minorcapitaloutlaysoflessthan$10,000willbeincludedinthe regularoperatingbudget. TheCapitalImprovementProgram(CIP)differentiatesthefinancingofhighcostlong-livedphysical improvementsfromlowcost"consumable"equipmentitemscontainedintheoperatingbudget.CIPitems maybefundedthroughdebtfinancingorcurrentrevenueswhileoperatingbudgetitemsareannualor routineinnatureandshouldonlybefinancedfromcurrentrevenues. 6.SpendingPolicy:Thecitywillspenditsresourcesinthefollowingorder.Resourceswillbecategorized accordingtoGenerallyAcceptedAccountingPrinciples(GAAP)forstateandlocalgovernments,withthe followinggeneraldefinitions: Restricted--Amountsconstrainedtospecificpurposesbytheirproviders(suchas grantors,bondholders,andhigherlevelsofgovernment)throughconstitutional provisionsorbyenablinglegislation. Committed--Amountsconstrainedtospecificpurposesbythecitycouncil;tobereported ascommitted,amountscannotbeusedforanyotherpurposeunlessthecitycouncil takesactiontoremoveorchangetheconstraint. Assigned--Amountsthecityintendstouseforaspecificpurpose;intentcanbe expressedbythecouncilorbyanofficialorbodytowhichthecouncildelegatesthe authority.Thecitycouncilcandelegatethisauthoritytothecityadministrator. 24 Unassigned--Amountsthatareavailableforanypurpose;theseamountsare reportedonlyintheGeneralFund. Whenbothrestrictedandunrestrictedresourcesareavailable,spendingwilloccurinthe followingorder,fortheidentifiedfundtypes: FundType OrderofSpending GeneralFund 1.Restricted 2.Committed 3.Assigned 4.Unassigned ThecitycouncilhastheauthoritytoexpressassignmentsintheGeneralFund. SpecialRevenue Funds 1.Restricted 2.Committed 3.Assigned Thecitycouncilhastheauthoritytoexpressassignmentsinspecial revenue funds. Debt Service Funds 1.Assigned 2.Committed 3.Restricted Thecitycouncilhastheauthoritytoexpressassignmentsindebt service funds. CapitalProjects Funds 1.Restricted 2.Committed 3.Assigned Thecitycouncilhastheauthoritytoexpressassignmentsincapital project funds. DebtAdministration 1.Thecitywilllimitlong-termdebttocapitalimprovementswhichcannotbefinancedfrom currentrevenues. Incurringlong-termdebtservestoobligatefuturetaxpayers.Excessrelianceonlong-termdebt cancausedebtlevelstoreachorexceedthegovernment'sabilitytopay.Therefore,conscientioususeof long-termdebtwillprovideassurancethatfutureresidentswillbeableservicethedebtobligationsleft byformerresidents. 2.Thecitywillrepayborrowedfunds,usedforcapitalprojects,withinaperiodnotto exceedtheexpectedusefullifeoftheproject. Thispolicyreflectstheviewthatthoseresidentswhobenefitfromaprojectshouldpayforthe project.Adherencetothispolicywillalsohelppreventthegovernmentfromover-extendingitselfwith regardtotheincurrenceoffuturedebt. 25 3.Thecitywillnotuselong-termdebtforfinancingcurrentoperations. Thispolicyreflectstheviewthatthoseresidentswhobenefitfromaserviceshouldpayforthe service.Utilizationoflong-termdebttosupportcurrentoperationswouldresultinfutureresidents supportingservicesprovidedtocurrentresidents. 4.ThecityofMonticellowilladheretoapolicyoffullpublicdisclosurewithregardtotheissuanceof debt. Fullpublicdisclosurewithregardtotheissuanceofdebtprovidesassurancethattheincurrenceof debt,forwhichthepublicisresponsible,isbaseduponagenuineneedandisconsistentwith underwriterguidelines. ReservesandFundBalances 1.ReservesandFundBalanceswillbeproperlydesignatedintothefollowingcategories: Nonspendablefundbalance--Amountsthatarenotinaspendableform(suchas inventory)orarerequiredtobemaintainedintact(suchasthecorpusofan endowmentfund). Restrictedfundbalance--Amountsconstrainedtospecificpurposesbytheirproviders (suchasgrantors,bondholders,andhigherlevelsofgovernment)through constitutionalprovisionsorbyenablinglegislation. Committedfundbalance--Amountsconstrainedtospecificpurposesbythecity council;tobereportedascommitted,amountscannotbeusedforanyotherpurpose unlessthecitycounciltakesactiontoremoveorchangetheconstraint. Assignedfundbalance--Amountsthecityintendstouseforaspecificpurpose;intent canbeexpressedbythecouncilorbyanofficialorbodytowhichthecouncil delegatestheauthority. Unassignedfundbalance--Amountsthatareavailableforanypurpose;these amountsarereportedonlyintheGeneralFund. 2.Aminimumlevelofgeneralfundreserveequalto35%ofannualoperatingrevenuesornolessthan fivemonthsofoperatingexpenditureswillbemaintainedbythecity.Thisreserveiscommittedtobe usedfor:cashflowpurposes,accruedemployeepayrollbenefitswhicharenotshownasaliability, unanticipatedequipmentacquisitionandreplacement,andtoenablethecitytomeetunexpected expendituredemandsorrevenueshortfalls. Propertytaxesrepresentthecity'sprimarysourceofgeneralfundrevenue.Propertytaxesare collectedinJuneandDecemberofeachfiscalyear.Sincethecity'sfiscalyearbeginsonJanuary1st,thecity mustmaintainanadequatecashbalanceinordertomeetitsexpenditureobligationsbetweensemi- annualcollectionsofpropertytaxes. Accruedemployeepayrollbenefits,suchassickleaveandvacation,representa significantobligationofthecity.Thecitywillmaintainsufficientreservestomeetitsannual expenditureobligations. 26 Thecityrecognizestheneedtomaintainadequateequipmentinordertocarryoutrequiredpublic services.Equipmentacquisitionandreplacementrepresenton-goingcostsofarelativelyminornature,as comparedtomajorcapitalpurchases.WeplanforequipmentreplacementwithinourCapitalImprovement Program.However,unforeseenequipmentproblemswillarise.Thereservewillprovideresourcesforthe immediate,unanticipatedreplacementofcriticalequipment. Thecityissubjecttorevenueshortfallsandunexpectedexpendituredemandsduringthefiscalyear. Anundesignatedgeneralfundreservewillbemaintainedtobeabletooffsettheserevenueshortfallsor meetunexpecteddemandsoccurringduringtheyear,withoutsuddenlyadjustingtaxratesorreducing expenditures. FinancialReporting&Accounting 1.ThecitywillmanageandaccountforitsfinancialactivityinaccordancewithGenerallyAccepted AccountingPrinciples(GAAP),assetforthbytheGovernmentalAccountingStandardsBoard(GASB). GASBisrecognizedastheauthoritywithrespecttogovernmentalaccounting.Managingthe city'sfinancesinaccordancewithGAAPandinaccordancewiththerulessetforthbyGASB,providesthe Monticellocitizensassurancethattheirpublicfundsarebeingaccountedforinapropermanner. 2.Thecitywillmaintainitsaccountingrecordsforgeneralgovernmentaloperationsonamodified accrualbasis,withrevenuesrecordedwhenavailableandmeasurable,andexpendituresrecordedwhen servicesorgoodsarereceivedandliabilitiesincurred.Accountingrecordsforproprietaryfundtypesand similartrustfundswillbemaintainedonanaccrualbasis,withallrevenuesrecordedwhenearnedand expensesrecordedatthetimeliabilitiesareincurred,withoutregardtoreceiptorpaymentofcash. Adherencetothispolicywillenablethecitytoprepareitsfinancialstatementsinaccordancewith GenerallyAcceptedAccountingPrinciplesassetforthbytheGovernmentalAccountingStandardsBoard. 3.ThecityofMonticellowillprepareaComprehensiveAnnualFinancialReport(CAFR)inconformity withGenerallyAcceptedAccountingPrinciples(GAAP).Thereportwillbemadeavailabletothegeneral public.TheCAFRshallbepreparedinaccordancewiththestandardsestablishedbytheGFOAforthe CertificateofAchievementforExcellenceinFinancialReportingProgram TheCertificateofAchievementrepresentsasignificantaccomplishmentforagovernmentandits financialmanagement.Theprogramencouragesgovernmentstoprepareandpublishaneasilyreadable andunderstandablecomprehensiveannualfinancialreportcoveringallfundsandfinancialtransactionsof thegovernmentduringtheyear.TheCAFRprovidesuserswithawidevarietyofinformationusefulin evaluatingthefinancialconditionofagovernment.Theprogramalsoencouragescontinuedimprovement inthecity'sfinancialreportingpractices. 4.Thecitywillensuretheconductoftimely,effective,andannualauditcoverageofall financialrecordsincompliancetheLocal,State,andFederallaw. Auditsofthecity'sfinancialrecordsprovidethepublicassurancethatitsfundsarebeingexpended inaccordancewithLocal,State,andFederallawandinaccordancewithGenerallyAcceptedAccounting 27 Principles.Auditsalsoprovidemanagementandthecitycouncilwithsuggestionsforimprovementinits financialoperationsfromindependentexpertsintheaccountingfield. 5.ThecityofMonticellowillmaintainapolicyoffullandopenpublicdisclosureofallfinancialactivity. Fullandopenpublicdisclosureofallfinancialactivityprovidesthepublicwithassurancethatits electedofficialsandadministratorscommunicatefullyallfinancialmattersaffectingthepublic. 6.ThemodifiedaccrualbasisofaccountingandbudgetingisusedfortheGovernmentalFunds.Under themodifiedaccrualbasisofaccounting,revenuesarerecordedwhensusceptibletoaccrual,i.e.,both measurableandavailable.Availablemeanscollectiblewithinthecurrentperiodorsoonenough thereaftertobeusedtopayliabilitiesofthecurrentperiod.Expendituresarerecordedwhentherelated liabilityisincurred.Employeecompensatedabsencesandprincipalandinterestonlong-termdebt expendituresarerecordedwhendueinthecurrentperiod.Theaccrualbasisofaccountingisusedfor ProprietaryFunds.Underthismethod,revenuesarerecordedwhenearnedandexpensesarerecorded whentherelatedliabilityisincurred.ForBudgetpreparationandpresentation,theProprietaryFunds’ expensesareconvertedtoexpendituresandfollowthesamebudgetformatastheGovernmentFund types.CapitaloutlaysintheEnterpriseFundsarepresentedasexpensesforbudgetbasis,butare recordedasassetsalongwithassociateddepreciationexpenseontheGAAPbasis.Debtserviceprincipal paymentsintheEnterpriseFundsareaccountedforasexpensesforbudgetpurposes,butarereported asreductionoflong-termdebtliabilityontheGAAPbasis. Recordingcapitaloutlaysasexpendituresandprincipalpaymentsonlong-termdebtfor budgetpurposes,presentsaclearerpictureofthecity’sfinancialoperations,iseasierto administerforcashflowpurposes,andiseasierforthelaypersontounderstand. CashManagement&Investment POLICYSTATEMENT Theinvestmentprogramshallbeoperatedinconformancewiththecitycharter,statelaw, andlocalordinancesandresolutions. SCOPE ThepolicyshallapplytotheinvestmentofallgeneralandspecialfundsofthecityofMonticelloover whichitexercisesfinancialcontrol.Proceedsfromcertainbondissues,aswellasseparate foundationassets,maybecoveredbyaseparatepolicy. POOLINGOFFUNDS Exceptforcashincertainrestrictedandspecialfunds,thecitywillconsolidatecashandreserve balancesfromallfundstomaximizeinvestmentearningsandtoincreaseefficiencieswithregardto investmentpricing,safekeepingandadministration.Investmentincomewillbeallocatedtothe variousfundsbasedontheirrespectiveparticipationandinaccordancewithgenerallyaccepted accountingprinciples.Poolingalsomaximizestheamountoffundsavailableforinvestment. 28 OBJECTIVES Theprimaryobjectives,inpriorityoforder,ofinvestmentactivitiesshallbesafety,liquidityandyield. a.Safety Safetyofprincipalistheforemostobjectiveoftheinvestmentprogram.Investmentsshallbe undertakeninamannerthatseekstoensurethepreservationofcapitalintheoverallportfolio.The objectivewillbetomitigatecreditriskandinterestraterisk. 1.CreditRiskThecitywillminimizecreditrisk,whichistheriskoflossduetothefailureofthe securityissuerorbacker,by:limitinginvestmentstocertaintypesofsecurities(government agencies,certificatesofdeposits,andcollateralizedinvestmentcontracts),diversifyingthe investmentportfoliosothattheimpactofpotentiallossesfromanyonetypeofsecurityor fromanyindividualissuerwillbeminimized. 2.InterestRateRiskThecitywillminimizeinterestraterisk,whichistheriskthatthemarket valueofportfoliowillfallduetochangesinmarketinterestrates,by:structuringthe investmentportfoliosothatsecuritiesmaturetomeetcashrequirementsforongoing operations,therebyavoidingtheneedtosellsecuritiesontheopenmarketpriortomaturity; investingoperatingfundsprimarilyinshorter-termsecurities,moneymarketmutualfunds, orsimilarinvestmentpoolsandlimitingtheaveragematurityoftheportfolioinaccordance withthispolicy. b.Liquidity Theinvestmentportfolioshallremainsufficientlyliquidtomeetalloperatingrequirements thatmaybereasonablyanticipated.Thisisaccomplishedbystructuringtheportfoliosothat securitiesmatureconcurrentwithcashneedstomeetanticipateddemands(staticliquidity). Furthermore,sinceallpossiblecashdemandscannotbeanticipated,theportfolioshouldconsist largelyofsecuritieswithactivesecondaryorresalemarkets(dynamicliquidity).Alternatively,a portionoftheportfoliomaybeplacedinmoneymarketmutualfundsorlocalgovernment investmentpoolswhichoffersame-dayliquidityforshort-termfunds. c.Yield Theinvestmentportfolioshallbedesignedwithobjectiveofattainingamarketrateofreturn throughoutbudgetaryandeconomiccycles,takingintoaccounttheinvestmentriskconstraintsand liquidityneeds.Returnoninvestmentisofsecondaryimportancecomparedtothesafetyand liquidityneeds.Thecoreinvestmentsarelimitedtorelativelylowrisksecuritiesinanticipationof earningafairreturnrelativetotheriskbeingassumed.Securitiesshallgenerallybehelduntil maturitywiththefollowingexceptions:1)asecuritywithdecliningcreditmaybesoldearlyto minimizethelossofprincipal,2)asecurityswapwouldimprovethequality,yield,ortargetduration intheportfolio,and3)liquidityneedsoftheportfoliorequirethatthesecuritybesold. PRUDENCE Thestandardofprudencetobeusedbyinvestmentofficialsshallbethe"prudentperson"standard andshallbeappliedinthecontextofmanaginganoverallportfolio.Investmentofficersactingin accordancewithwrittenproceduresandthisinvestmentpolicyandexercisingduediligenceshallbe 29 relievedofpersonalresponsibilityforanindividualsecurity'screditriskormarketpricechanges, provideddeviationsfromexpectationsarereportedinatimelyfashionandtheliquidityandthesale ofsecuritiesarecarriedoutinaccordancewiththetermsofthispolicy. The"prudentperson"standardstatesthat,"Investmentsshallbemadewithjudgmentandcare, undercircumstancesthenprevailing,whichpersonsofprudence,discretionandintelligenceexercise inthemanagementoftheirownaffairs,notforspeculation,butforinvestment,consideringthe probablesafetyoftheircapitalaswellastheprobableincometobederived." ELIGIBLEINVESTMENTS a.Deposits InaccordancewithMinnesotaStatutes,thecitymaintainsdepositsatthosedepositorybanks authorizedbythecitycouncil,allofwhicharemembersoftheFederalReserveSystem. MinnesotaStatutesrequirethatallcitydepositsbeprotectedbyinsurance,suretybond,or collateral.Themarketvalueofthecollateralmustbeaminimumof110%ofthedepositsnot coveredbyinsuranceorbonds(140%inthecaseofmortgagebackedcollateral). Authorizedcollateralincludesthelegalinvestmentseligibleinvestments(below),aswellascertain firstmortgagenotes,andcertainotherstateorlocalgovernmentobligations.MinnesotaStatutes requirethatsecuritiespledgedascollateralbeheldinsafekeepingbytheClerk-Treasurerorina financialinstitutionotherthanthatfurnishingthecollateral. b.Investments ThecityisauthorizedbyMinnesotastatutestoinvestinthefollowing: 1.DirectobligationsorobligationsguaranteedbytheUnitedStatesoritsagencies,its instrumentalities,ororganizationscreatedbyanactofcongress,excludingmortgagebacked securitiesdefinedashighrisk. 2.SharesofinvestmentcompaniesregisteredundertheFederalInvestmentCompanyActof 1940andwhoseonlyinvestmentsareinsecuritiesdescribedin(a)above,generalobligation tax-exemptsecurities,orrepurchaseorreverserepurchaseagreements. 3.GeneralobligationsofthestateofMinnesotaoranyofitsmunicipalities. 4.BankersacceptanceofUnitedStatesbankseligibleforpurchasebytheFederalReserve System. 5.CommercialpaperissuedbyUnitedStatescorporationsortheirCanadiansubsidiaries,ofthe highestquality,andmaturingin270daysorless. 6.RepurchaseorreserverepurchaseagreementswithbanksthataremembersoftheFederal ReserveSystemwithcapitalizationexceeding$10,000,000,aprimaryreportingdealerinU.S. governmentsecuritiestotheFederalReserveBankofNewYork,orcertainMinnesota securitiesbrokerdealers. 7.FuturecontractssoldunderauthorityofMinnesotaStatutes471.56,Subd.5. 30 ETHICSANDCONFLICTSOFINTEREST Officersandemployeesinvolvedintheinvestmentprocessshallrefrainfrompersonalbusiness activitythatcouldconflictwiththeproperexecutionandmanagementoftheinvestmentprogram, orthatcouldimpairtheirabilitytomakeimpartialdecisions.Employeesandinvestmentofficials shalldiscloseanymaterialinterestsinfinancialinstitutionswithwhichtheyconductbusiness.They shallfurtherdiscloseanypersonalfinancial/investmentpositionsthatcouldberelatedtothe performanceoftheinvestmentportfolio.Employeesandofficersshallrefrainfromundertaking personalinvestmenttransactionswiththesameindividualwithwhombusinessisconductedon behalfofthecity. POLICYREVISIONS Thecashmanagementandinvestmentpolicywillbereviewedperiodicallybythecity administrator/clerk-treasurerandfinancedirectorandmaybeamendedbycitycouncilactionas conditionswarrant. 31 FINANCIALSTRUCTURE Tobetterunderstandthisbudgetdocument,abasicunderstandingofthestructure,often-used terms,andfundtypesishelpful. Thecity’soperatingexpendituresareorganizedintothefollowinghierarchicalcategories:fund department,activity,andbudgetunits. Fund:Funds (specificorgeneralpurpose)representsthehighestlevelofsummarizationusedin thecity’sfinancialstructure.Thislevelisprimarilyusedforentity-widefinancialreportingand forsummarizationinthisbudgetdocument. Departments(Functions) GeneralGovernment PublicSafety PublicWorks RecreationandCulture Other Department:Departmentisthesecondlevelofsummarizationusedinthecity’sfinancial structure.Thefunctionclassificationrepresentsagroupingofrelatedoperationsandprograms aimedataccomplishingabroadgoalorprovidingamajorservice. Activity:Departmentscanbefurthersplitintodivisionswhichareusuallyassociatedwithfunctioningwork groupsthathavemorelimitedsetsofworkresponsibilities.Theirprimarypurposeisorganizationaland budgetaryaccountability. BudgetUnit:Activitiesmaybefurthersubdividedintobudgetunits.Abudgetunitisusedto accountforaspecificserviceperformedwithinanactivityinthepursuitofindividualgoalsand objectives.Abudgetunitisaimedataccomplishingaspecificserviceorregulatoryprogramfor whichagovernmentisresponsible. USEFULTERMS Tobetterassistreadersinunderstandingthebudgetdocument,abasicknowledgeofthefollowing termsisuseful: A FUND isafiscalandaccountingentitywithaself-balancingsetofaccountsrecordingcashandother financialresources,togetherwithallrelatedliabilitiesandresidualequitiesorbalances,andchanges therein.Fundsaresegregatedforthepurposeofcarryingonspecificactivitiesorattainingcertain 32 objectivesinaccordancewithspecialregulations,restrictions,orlimitations.Fundsinthegovernment modelareclassifiedintothreebroadcategories:governmental,proprietary,andfiduciary. Themostcommonreasonforestablishingafundistoseparatelyaccountforrestricted-use revenueortocomplywithstateorfederallaw. An ACCOUNT isanorganizationalorbudgetarybreakdownwhichisfoundwithincityfunds.Each departmentservesaspecificfunctionasadistinctorganizationalunitofgovernmentwithinthe givenfund.Itsprimarypurposeistofacilitateorganizationalandbudgetaryaccountability. An OBJECTOFEXPENDITURE referstospecific,detailedexpenditureclassification.Itrelatestoaspecific typeofitempurchasedorserviceobtained.Examplesofobjectsofexpenditureincludesalaries,supplies, contractedservice,travel,etc. Thecity’sfinancialoperationsandfundstructureconformwithGenerallyAcceptedAccountingPrinciples (GAAP).Thefundsaregroupedundergovernmental,proprietary,andfiduciaryfundtypes.Thecity’sfund structureiscomprisedofthefollowingfunds,allofwhicharebudgeted. GOVERNMENTALFUNDTYPES GeneralFund:Thegeneralfundisusedtoaccountforallfinancialresourcesofthecity,exceptfor thoserequiredtobeaccountedforinanotherfund.Thegeneralfundsupportssuchbasicservices asthelegislativebranch,judicialbranch,generaladministration,police,fire,finance,engineering, recreation,libraryservices. RevenueSources:Thecity'sGeneralFundisfinancedprimarilybypropertytaxeswhichprovide over80%ofthegeneralfundrevenue.Otherrevenuesourcesinclude:licensesandpermits, intergovernmentalrevenue,chargesforservices,finesandforfeitures,interestoninvestments,operating transfers,andmiscellaneousrevenues. SpecialRevenueFunds:Specialrevenuefundsareusedtoaccountfortheproceedsofspecificrevenue sources(otherthanspecialassessments,expendabletrusts,orformajorcapitalprojects)thatarelegally restrictedtoexpenditureforspecificpurposes.Specialrevenuefundssupportinsurancecosts,retirement costs,planningfunctions,andotherserviceslegallyrestrictedforspecificpurposes. RevenueSources:Specialrevenuefundsaresupportedeitherthroughpropertytaxesorthrough grantsorotherrestrictedrevenuesources.Examplesofspecialrevenuefundssupportedbyproperty taxesincludeMonticelloCommunityCenter.Examplesofspecialrevenuefundssupportedbygrantsor otherrestrictedrevenuesourcesincludetheEconomicDevelopmentFundandtheParkandPathway DedicationFund. DebtServiceFunds:Debtservicefundsareusedtoaccountfortheaccumulationofresourcesfor,andthe paymentof,generallong-termdebtprincipalandinterest.Debtservicefundsprovidefinancingfora varietyofthecity'sG.O.improvementandrevenuebonds. 33 RevenueSources:Debtservicefundsaresupportedwithspecialassessments,accessfundtransfers, propertytaxes,andinterestoninvestments. CapitalProjectFunds:Capitalprojectfundsareusedtoaccountforfinancialresourcestobeusedforthe acquisitionorconstructionofmajorcapitalfacilities(otherthanthosefinancedbyproprietaryfunds). RevenueSources:Capitalprojectfundsaresupportedbylongtermdebtproceeds, donations,stateandfederalgrants,andoperatingtransfersfromotherfunds. PROPRIETARYFUNDTYPES InternalServiceFunds:Internalservicefundsareusedtoaccountforthefinancingofgoodsor servicesprovidedbyonedepartmenttootherdepartmentsonacost-reimbursementbasis.Internal servicefundswillaccountforthecity'scapitalequipmentinternalleasingprogramandITService. Thesefundshavebeenauthorizedforimplementationin2013. RevenueSources:Internalservicefundsaresupportedthroughbillingstoother departmentsbasedonthesaleofgoodsandtheservicesprovided. EnterpriseFunds:Enterprisefundsareusedtoaccountforoperationsthatarefinancedandoperatedina mannersimilartoprivatebusinessenterprises--wheretheintentofthegoverningbodyisthatthecosts (expenses,includingdepreciation)ofprovidinggoodsorservicestothegeneralpubliconacontinuingbasis befinancedorrecoveredprimarilythroughusercharges.Enterprisefundsaccountforthecity'swater, sewage,liquorstore,cemetery,andfiberopticsservices. RevenueSources:Enterprisefundsaresupportedthroughusercharges,saleofgoods,penalties,and interestincome. FIDUCIARYFUNDTYPES TrustFunds:Trustfundsareusedtoaccountforassetsheldbyagovernmentalunitinatrusteecapacity. Theseinclude(a)expendabletrustfunds,(b)permanenttrustfunds,and(c)pensiontrustfunds.Thecity doesnothaveanyfiduciaryfunds. RevenueSources:Trustfundsaresupportedbydonationsandinterestincome. 34 THEBUDGETPROCESS ThecityofMonticellobudgetservesseveralpurposes. Forthe citizensofthecityofMonticello,itpresentsapictureofthecitygovernment operationsandintentionsfortheyear. Forthe citycouncil,itservesasapolicytoolandasanexpressionofgoalsandobjectives. For citymanagement,itisusedasanoperatingguideandacontrolmechanism. Thecity'sbudgetencompassesboththeoperatingbudgetandthecapitalimprovementbudget. Eachbudgetunitincludesamountsappropriatedforbothoperatingexpensesandcapitalitems. Theaccompanyingnarrativeexplanationforeachbudgetunitprovidesanexplanationofcapital itemsincludedinthebudget. BASISOFBUDGETING Thecity’saccountsareorganizedonthebasisoffunds,eachofwhichisconsideredaseparateentity.The operationsofeachfundareaccountedforwithaseparatesetofself-balancingaccountsthatcompriseits assets,liabilities,fundequity,revenuesandexpenditures/expenses. Governmentalfunds(theGeneralFundandspecialrevenue,debtservice,andcapitalprojectfunds),use themodifiedaccrualbasisofbudgetingandaccounting.Revenuesarerecognizedintheaccountingperiod inwhichtheybecomeavailableandmeasurable.Expendituresarerecognizedwhenliabilitiesareincurred. Proprietaryfunds(EnterpriseandInternalServicefunds)arebudgetedonamodifiedaccrualbasiswhich doesnotincludedepreciationorcompensatedabsences.Eachfund’sfinancialstatements,whichcanbe foundinthecity’sComprehensiveAnnualFinancialReport(CAFR),arereportedonthefullaccrualbasis.In theaccrualbasisofaccounting,revenuesarerecognizedintheaccountingperiodinwhichtheyare earned.Expensesarerecognizedintheaccountingperiodinwhichtheyoccur. BUDGETDEVELOPMENTPROCESS AftersubmittingtheCityAdministrator-FinanceDirectorRecommendedBudgettothecitycouncil,public worksessionsmaybeheldbythecouncilorsatwhichtimethecityadministrator,financedirector,and departmentstaffexplainthebudgetrecommendationsandunderlyingjustificationfortherequests.The councilalsoreviewsdepartmentalrequestswhichcouldnotbefunded,asanindicationofun-metneeds. Duringorfollowingtheworksessions,thecouncilorsmaymakeadjustmentstotheproposedbudget. Followinganyadjustmentstothecityadministrator-financedirectorbudgetrecommendation,a tentativeappropriationordinanceispreparedandapublichearingisheld.TheCouncilmayagainmake adjustmentstothebudgetfollowingthepublichearing,afterwhichtime,theCouncilpassesthe appropriationordinanceinfinalform. Appropriationsareestablishedbybudgetunit.Theaccountingsystem,budgetingsystem,andthebudget documentitself,however,breaktheseclassesintosubclasses--therebyprovidingmoredetailed information.Asanexample,operatingsupplies,gasandoil,andsubscriptionsareallclassifiedas 35 operatingexpenses.Theaccountingandbudgetingsystemsprovidedetailforthesespecificsub-classes. However,appropriationcontrolisexercisedonlyatthebudgetunitlevel. BUDGETCALENDAR/PROCEDURES Thefollowingbudgettimelineoutlinestheprocessthecitycustomarilyfollowsforcreationand adoptionoftheannualbudget. Date Activity June7,2012 2013-2017capitalequipment/projects(CIP)worksheetsandbudget worksheetstodepartmentheads. June25,2012 WorkshopwithcitycouncilandstafftoSet2012/13goalsand priorities. June,2012 Departmentheadsmeetwithvariousadvisoryboardsand commissionsforinputinto2013preliminarybudgetandCIP. July13,20122013-2017CIPandbudgetworksheetsduetofinancedepartment July,2012 Departmentheadsmeetwithcityadministrator,andfinancestaffto develop2013preliminarybudgetandCIP. July23,2012Councilworkshoptoreviewdraftdepartmentbudgets. August13,2012 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIP. MiddleofAugust,2012 Financedepartmentdevelopsrevenueestimatesand2013preliminary propertytaxlevy. August27,2012 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIPcontinued. September10,2012Budgetworkshopwithcitycouncilandstaff. September10,2012 Counciladopts2013preliminarypropertytaxlevy. September14,20122013preliminarypropertytaxlevycertifiedtoWrightCountyauditor. October/November,2012 Departmentheadsmeetwithcityadministratorandfinancestaffto develop2013proposedBudgetandfinalpropertytaxlevy. December10,2012Counciladopts2013budgetandpropertytaxlevy. December28,2012 Citycertifiesfinal2013propertytaxlevytoWrightCountyauditor. January1,20132013fiscalyearbegins. 36 WORKLOAD/PERFORMANCEBUDGETING Beginningwiththefiscalyear2010budget,thecityofMonticellostartedthedevelopmentofa workload/performancebudget.Themovetothistypeofbudgetingresultedinashiftinemphasis awayfromdescribingwhatwillbepurchased(inputs)towardsdescribingwhatwillbeaccomplished (outputsandoutcomes).Whilethisbudgetingprocessfacesnumerousstructuralandcultural hurdles,thiswork-in-progresscontinuestodaywithbothanorganization-wideandbudget-unit specificfocusonoutcomes. PRESENTATION Thetextofthebudgetdocumentcustomarilycontainssixsectionsofinformationforeachactivity. Someactivitiesalsoincludehighlightsoraccomplishmentsfortheprioryearand/orthecomingyear. Thefirstsectionprovidesadescriptionoftheactivity. Thesecondsectiondescribesitsmajorobjectivestobeaccomplished. Thethirdsectionidentifiesissues/challengestheactivity/divisionfaces. Thefourthsectionliststheworkload/performanceindicatorsforthedivision. Thefifthsectionprovidesbudgetcommentary. Thesixthsectionprovidesdetailedfinancialinformation. Thefinancialinformationincludesexpenditureinformationforthelastcompletedfiscalyear,the appropriatedamountsforthecurrentyear,andtherecommendedamountscoveredbythebudget. Costsaresegregatedintosixbasicclassifications:personnelservices(wage&benefits);supplyexpenses; otherservicesandcharges;capitaloutlay;debtservice;andoperatingtransfers.Appropriationcontrolis exercisedonlyattheactivityunitlevelandnotattheindividualobjectofexpenditurelevel. Thenarrativeinformationispresentedtogetherwiththefinancialdetailtoassistreadersin understandingtheplannedoutcomesforeachactivity/division,thepurposeofeachbudget unit,andmajorchangesorexpendituresforthecomingyear. MONITORINGANDREPORTINGPROCESS Asthebudgetyearproceeds,individualdepartmentsandthefinancedepartmenthavedualresponsibility formonitoringthestatusofeachbudgetunit.Departmentstaffhasprimaryresponsibilityformonitoring thestatusofexpendituresagainsttheirbudget.ThisresponsibilityincludesinformingtheFinance Departmentofanysignificantdeparturesfromtheplansanticipatedinthebudget. Thefinancedepartmenthasoverallresponsibilityformonitoringthestatusofalldepartmentsandfunds. Thisisaccomplishedprimarilythroughanalysisofcomputerizedbudgetperformancereportswhich compareappropriationamountsonaline-itembasiswithactualexpendituresthroughouttheyear.These reportsaiddepartmentstaffincontrollingcostsandactasanearlywarningsystemforthefinance department.Departmentstaffmayexercisetheirjudgmentinexceedingexpendituresbyobjectcode,as longastheydonotexceedthetotalamountappropriatedforthebudgetunit. TheFinanceDepartmentreviewsthebudgetreportsonamonthlybasisanddiscussesanyvariances fromexpectedperformancewiththedepartmentstaff.Thefinancedepartmentconductsin-depth quarterlybudgetreviewsofallexpendituresandrevenues. 37 Significantchangesineitherexpendituresorrevenuesrequireabudgetrevision.Recommendationsare alsomadebytheFinanceDirectorforanycorrectiveactionsthatarebelievednecessary. BUDGETAMENDMENTPROCESS Statestatuteprovidesanumberofdifferentwaystoamendthebudget.Thefirstinvolvesareallocationof existingappropriationsamongthelineitemswithinaspecificfund.Theseconddefinesaseriesofscenarios wherethegoverningbodyhasauthoritytoamendthebudgetwithoutahearingfordonations,landsales, andfeebasedbudgets.Allotherincreasesinappropriationauthoritythatarenotspecificallypermittedby statutemustbeapprovedthroughapublicprocess. Thefinancedirectorisresponsibleforinsuringcompliancewithspendinglimitationsimposedbythe budget.Accordingly,thefinancedirectorsubmitsaBudgetStatusReporttothecitycouncilafterthree,six, nine,andtwelvemonthperiods.Thebudgetreviewsevaluateoverallrevenuesandexpendituresin comparisontothebudgetedamounts.Incaseswhereitappearstheoriginalspendingauthority authorizedwillnotprovesufficient,transfersofspendingauthorityoradditionalspendingauthorityare requestedtogetherwithexplanationsfortherequests.Thepublicapprovalprocessforbudget amendmentsisheldifnecessary. 38 ORGANIZATIONCHART CITY OF MONTICELLO Ci tizens of ORGANIZATIONAL CHART Monticello City Commissions & Council Advisory Boards City Administrator Human Finance Community City Public Community Deputy Fire FiberNet Contracted Resource Director Development Engineer Works Center City Chief Operation Services Director Director Director Director Clerk Finance Economic Construction Streets Community Elections Fire FiberNet City Department Development Inspectors Department Center Department Sales Attorney Data Building Consulting Parks FiberNet Sheri ffs Processing Inspections Engineer Department Office Department Audit Receptionist Utilities FiberNet Animal Department Plant Control Operations Department Consulting Refuse County of Motor Planner Collection Assessor Vehicles Liquor Operations 39 ALLFUNDSSUMMARYBYFUNDTYPE Special Debt Capital 2013 General Revenue Service Project Enterprise Total Fund Funds Funds Funds Funds Budget Fund Balance/W orking Capital - January 1 2,062,584 $ 7,605,529 $ 12,902,190 $ 7,116,607 $ 7,415,649 $ 37,102,559 $ Revenues and Other Sources Property Taxes 5,540,000 $ 1,170,000 $ 1,190,000 $ - $ - $ 7,900,000 $ Tax Increments - 681,240 - - - 681,240 Franchise & Other Taxes 236,500 - - 130,000 - 366,500 Sale of Goods - - - - 4,461,500 4,461,500 Licenses & Permits 270,980 - - - 3,700 274,680 Intergovernmental Revenues 284,509 - - 633,700 - 918,209 Charges for Services 272,610 1,662,750 - 154,415 4,567,100 6,656,875 Fines & Forfeits 100 - - - 100 Special Assessments 300 744,850 441,095 150,000 1,336,245 Misc ellaneous 181,970 157,600 234,100 396,725 224,570 1,194,965 Operating Transfers In - 780,000 3,432,074 766,300 220,000 5,198,374 Debt Proceeds - - - - 6,100,000 6,100,000 Total Revenues and Other Sources 6,786,969 $ 4,451,590 $ 5,601,024 $ 2,522,235 $ 15,726,870 $ 35,088,688 $ Expenditures and Other Uses Personnel Services 2,769,569 1,360,036 - - 1,577,521 5,707,126 Supplies 507,675 242,050 - - 3,945,635 4,695,360 Other Services & Charges 3,324,666 466,111 - 25,000 2,285,799 6,101,576 Capital Outlay 105,059 1,017,465 - 2,457,335 7,304,100 10,883,959 Debt Service - - 16,911,117 - 120,000 17,031,117 Operating Transfers Out 80,000 1,649,403 - 2,835,471 633,500 5,198,374 Total Expenditures and Other Uses 6,786,969 4,735,065 16,911,117 5,317,806 15,866,555 49,617,512 Net Change in Fund Balance/W orking Capital - $ (283,475) $ (11,310,093) $ (2,795,571) $ (139,685) $ (14,528,824) $ Fund Balance/W orking Capital - December 31, 2,062,584 $ 7,322,054 $ 1,592,097 $ 4,321,036 $ 7,275,965 $ 22,573,736 $ All FUNDS SUMMARY - BY FUND TYPE 40 ALLFUNDSSUMMARY-BYYEAR TOTA L A LL FUNDS 2009 2010 2011 2012 2012 2013 % REV ENUES A CTUA L A CTUA L A CTUA L BUDGET PROJECTED BUDGET CHA NGE Proper ty Tax es 7,484,104 $ 7,304,269 $ 7,319,010 $ 7,850,000 $ 7,865,586 $ 7,900,000 $ 0.6% Tax Increments 1,202,240 1,165,203 1,050,563 881,630 945,725 681,240 -22.7% Franchis e & Other Tax es 306,609 315,761 321,584 350,500 343,559 366,500 4.6% Sale of Goods 4,352,570 4,477,651 4,653,385 4,418,500 4,461,500 4,461,500 1.0% Lic ens es & Permits 290,131 231,370 258,526 245,100 278,373 274,680 12.1% Intergovernmental Rev enues 910,453 717,906 881,560 252,440 615,625 918,209 263.7% Charges f or Servic es 4,478,060 6,033,369 7,087,875 7,303,204 6,556,583 6,656,875 -8.8% Fines & Forf eits 1,220 255 85 150 1,600 100 -33.3% Spec ial A sses s ments 2,423,931 1,621,441 2,009,184 2,035,388 1,609,698 1,336,245 -34.3% Mis c ellaneous 1,413,515 2,033,552 4,078,797 1,288,688 1,249,230 1,194,965 -7.3% Contr ibuted Capital - 143,433 - - - - --- Operating Tr ans f ers 10,182,416 5,237,710 4,041,680 6,591,603 13,344,178 5,198,374 -21.1% Debt Proc eeds 5,710,673 15,022,420 14,655,376 6,000,000 - 6,100,000 1.7% TOTA L REV ENUES 38,755,922 $ 44,304,340 $ 46,357,625 $ 37,217,203 $ 37,271,657 $ 35,088,688 $ -5.7% EXPENDITURES Pers onnel Serv ices 4,880,845 $ 5,266,581 $ 5,437,475 $ 5,537,882 $ 5,580,675 $ 5,707,126 $ 3.1% Supplies 4,306,772 5,251,711 5,053,523 4,702,071 4,678,951 4,695,360 -0.1% Other Ser v ic es & Charges 6,502,469 7,789,229 8,142,242 8,263,959 6,580,091 6,101,576 -26.2% Capital Outlay 8,328,525 8,064,190 4,669,532 8,647,179 6,486,281 10,883,959 25.9% Debt Serv ice 9,961,063 9,331,701 8,280,662 8,061,539 7,216,202 17,031,117 111.3% Operating Tr ans f ers 10,180,313 5,230,964 5,720,851 6,591,603 13,344,178 5,198,374 -21.1% TOTA L EXPENDITURES 44,159,987 $ 40,934,376 $ 37,304,285 $ 41,804,233 $ 43,886,378 $ 49,617,512 $ 18.7% FUND BA LA NCE - JA NUA RY 1 36,698,011 $ 31,293,946 $ 34,663,910 $ 43,717,250 $ 43,717,250 $ 37,102,529 $ Ex c es s (Def ic ienc y ) of Rev enues ov er Expenditures (5,404,065) 3,369,964 9,053,340 (4,587,030) ( 6,614,721) (14,528,824) FUND BA LA NCE - DECEMBER 31 31,293,946 $ 34,663,910 $ 43,717,250 $ 39,130,220 $ 37,102,529 $ 22,573,706 $ 41 CHANGESINFUNDBALANCE/WORKINGCAPITAL ProjectedBeginningEstimatedAppropriationsProjectedBeginning FundBalance/RevenuesFundBalance/ WorkingCapitalWorkingCapital GeneralFund 2,062,584$6,786,969$6,786,969$2,062,584$ SpecialRevenueFunds EconomicDevelopment6,427,886851,3401,231,4766,047,750 DeputyRegistrar1,708372,050305,38968,369 MinnesotaInvestment1,054,47025,000-1,079,470 MonticelloCommunityCenter1192,598,2002,598,200119 Park&PathwayDedication121,346605,000600,000126,346 TotalSpecialRevenueFunds 7,605,5294,451,5904,735,0657,322,054 DebtServiceFunds 2005AG.O.ImprovementBond217,2012,704,5792,794,556127,224 2007AG.O.ImprovementBond297,460579,865735,400141,925 2008AG.O.SewerRefunding644,122955,0001,050,241548,881 2008AG.O.RevenueRefunding199,935880,0001,079,120815 2010AG.O.ImprovementBond574,021481,580448,325607,276 2011AG.O.RefundingBond10,969,451-10,803,475165,976 TotalDebtServiceFunds 12,902,1905,601,02416,911,1171,592,097 CapitalProjectFunds CapitalProject(160,889)1,415,0001,525,000(270,889) ClosedBondFund859,785446,095600,000705,880 SanitarySewerAccess1,832,014128,7951,283,371677,438 StormwaterAccess1,371,32090,000361,8001,099,520 WaterAccess15,30625,620-40,926 StreetLightingImprovement715,618130,000296,300549,318 StreetConstruction1,820,84250,000784,0001,086,842 CapitalOutlayRevolving662,611236,725467,335432,001 TotalCapitalProjectFunds 7,116,6072,522,2355,317,8064,321,036 EnterpriseFunds Water4,211,4121,368,0001,521,3244,058,088 Sewage2,799,7617,981,7628,033,2472,748,276 Liquor382,3394,511,5004,449,406444,433 Cemetery22,11325,60826,07821,643 FiberOptics(221,975)1,840,0001,836,500(218,475) TotalEnterpriseFunds 7,193,64915,726,87015,866,5557,053,965 InternalServiceFunds ITServices(Authorized)---- CentralEquipment(Authorized)---- TotalInternalServiceFunds ---- TotalAllFunds 36,880,559$35,088,688$49,617,511$22,351,736$ FiscalYear2013 CHANGESINFUNDBALANCE/WORKINGCAPITAL 42 TAXLEVY&TAXCAPACITYHISTORY 20092010201120122013 GeneralFund 5,331,009$5,423,114$5,407,872$5,451,248$5,540,000$ PercentChange1.7%-0.3%0.8%1.6% SpecialRevenueFunds MonticelloCommunityCenter*1,296,6011,092,3531,100,0001,150,0001,170,000 TotalSpecialRevenueFunds 1,296,6011,092,3531,100,0001,150,0001,170,000 PercentChange-15.8%0.7%4.5%1.7% DebtServiceFunds 2005AG.O.ImprovementBond160,583248,724244,131251,906245,000 2007AG.O.ImprovementBond196,916414,780418,306416,846425,000 2008AG.O.SewerRefunding478,057496,231430,000500,000500,000 2010AG.O.ImprovementBond74,79852,00050,00020,000 TotalDebtServiceFunds**835,5561,234,5331,144,4371,218,7521,190,000 PercentChange47.7%-7.3%6.5%-2.4% CapitalProjectFunds StreetConstruction286,83425,00025,00025,000 TotalCapitalProjectFunds 286,834 25,00025,000 25,000- PercentChange-91.3%0.0%0.0%-100.0% TotalAllFunds7,750,000$7,775,000$7,677,309$7,845,000$7,900,000$ PercentChange0.3%-1.3%2.2%0.7% *MCClevyfordebt700,000$805,000$815,000$890,000$875,000$ **TotaldebtlevywithMCCdebt1,535,556$2,039,533$1,959,437$2,108,752$2,065,000$ PercentChange32.8%-3.9%7.6%-2.1% 20092010201120122013 TaxCapacity16,783,843$16,691,266$16,429,431$15,771,688$18,705,414$ PercentChange-0.6%-1.6%-4.0%18.6% TaxCapacityRate46.19145.82246.72949.77342.234 PercentChange-0.8%2.0%6.5%-15.1% TAXLEVYANDTAXCAPACITYHISTORY TAXLEVYHISTORY TAXCAPACITYHISTORY 43 REVENUESOURCESBYFUND Property Franchise Tax Licenses/ Intergovern- Charges for Fines & Special Miscell- Sale of Debt Operating Taxes & Other Increments Permits mental Services Forfiets Assess aneous Goods Proceeds Transfers Total General Fund 5,540,000 $ 236,500 $ - $ 270,980 $ 284,509 $ 272,610 $ 100 $ 300 $ 181,970 $ - $ - $ - $ 6,786,969 $ Special Revenue Funds Economic Development - - 681,240 - - - - - 90,100 - - 80,000 851,340 Deputy Registrar - - - - - 370,050 - - 2,000 - - - 372,050 Minnesota Investment - - - - - - - - 25,000 - - - 25,000 Monticello Community Center 1,170,000 - - - - 1,292,700 - - 35,500 - - 100,000 2,598,200 Park & Pathway Dedication - - - - - - - - 5,000 - - 600,000 605,000 Tota l Special Revenue Funds 1,170,000 - 681,240 - - 1,662,750 - - 157,600 - - 780,000 4,451,590 Debt Service Funds 2005A G.O. Improvement Bond 245,000 - - - - - - 436,600 224,100 - - 1,798,879 2,704,579 2007A G.O. Improvement Bond 425,000 - - - - - - 154,865 - - - - 579,865 2008A G.O. Sewer Refunding 500,000 - - - - - - - 5,000 - - 450,000 955,000 2008A G.O. Revenue Refunding - - - - - - - - 5,000 - - 875,000 880,000 2010A G.O. Improvement Bond 20,000 - - - - - - 153,385 - - - 308,195 481,580 2011A G.O. Refunding Bond - - - - - - - - - - - - - Tota l Debt Service Funds 1,190,000 - - - - - - 744,850 234,100 - - 3,432,074 5,601,024 Capital Project Funds Capital Project - - - - 633,700 - - - 15,000 - - 766,300 1,415,000 Closed Bond Fund - - - - - - - 441,095 5,000 - - - 446,095 Sanitary Sewer Access - - - - - 78,795 - - 50,000 - - - 128,795 Stormwater Access - - - - - 50,000 - - 40,000 - - - 90,000 Water Access - - - - - 25,620 - - - - - - 25,620 Street Lighting Improvement - 130,000 - - - - - - - - - - 130,000 Street Construction - - - - - - - - 50,000 - - - 50,000 Capital Outlay Revolving - - - - - - - - 236,725 - - - 236,725 Tota l Capital Project Funds - 130,000 - - 633,700 154,415 - 441,095 396,725 - - 766,300 2,522,235 Ente rprise Funds Water - - - 3,700 - 1,121,800 - 150,000 92,500 - - - 1,368,000 Sewage - - - - - 1,800,500 - - 81,262 - 6,100,000 - 7,981,762 Liquor - - - - - - - - 50,000 4,461,500 - - 4,511,500 Cemetery - - - - - 24,800 - - 808 - - - 25,608 Fiber Optics - - - - - 1,620,000 - - - - - 220,000 1,840,000 Tota l Enterprise Funds - - - 3,700 - 4,567,100 - 150,000 224,570 4,461,500 6,100,000 220,000 15,726,870 Tota l All Funds 7,900,000 $ 366,500 $ 681,240 $ 274,680 $ 918,209 $ 6,656,875 $ 100 $ 1,336,245 $ 1,194,965 $ 4,461,500 $ 6,100,000 $ 5,198,374 $ 35,088,688 $ Revenue Classifications 44 FUNDBALANCEHISTORY AmendedAdopted ActualActualActualBudgetProjectedBudget 200920102011201220122013 GeneralFund 5,178,134$5,067,067$4,410,637$4,410,637$2,062,584$2,062,584$ SpecialRevenueFunds EconomicDevelopment7,271,5567,240,1547,478,6517,739,6756,427,8866,047,750 DeputyRegistrar164,670228,245250,624275,7071,70868,369 MinnesotaInvestment918,996952,9071,022,4701,053,0611,054,4701,079,470 MonticelloCommunityCenter959,3021,155,850978,008(151,881)119119 Park&PathwayDedication420,846446,187(141,890)(274,987)121,346126,346 TotalSpecialRevenueFunds 9,735,37010,023,3439,587,8638,641,5757,605,5297,322,054 DebtServiceFunds 2005AG.O.ImprovementBond1,771,4401,220,149290,92879,971217,201127,224 2007AG.O.ImprovementBond174,148126,500216,886159,121297,460141,925 2008AG.O.SewerRefunding919,568790,797722,832644,122644,122548,881 2008AG.O.RevenueRefunding655,408674,416408,315207,295199,935815 2010AG.O.ImprovementBond-(89,956)517,835574,021574,021607,276 2011AG.O.RefundingBond--10,969,45110,969,45110,969,451165,976 ClosedDebtServiceFunds846,991 TotalDebtServiceFunds 4,367,5552,721,90613,126,24712,633,98112,902,1901,592,097 CapitalProjectFunds CapitalProject(2,124,346)(1,532,176)(1,362,621)2,451,304(160,889)(270,889) ClosedBondFund(777,627)315,891514,117931,506859,785705,880 SanitarySewerAccess4,987,3534,081,3763,135,7492,031,4881,832,014677,438 StormwaterAccess2,291,0812,113,4591,803,3831,445,3501,371,3201,099,520 WaterAccess820,356537,370229,249(94,946)15,30640,926 StreetLightingImprovement604,078929,677965,618946,128715,618549,318 StreetConstruction2,641,1803,000,8303,330,8971,891,8581,820,8421,086,842 CapitalOutlayRevolving705,4741,022,6991,055,438582,611662,611432,001 TotalCapitalProjectFunds 9,147,54910,469,1269,671,83010,185,2997,116,6074,321,036 EnterpriseFunds Water2,888,3803,379,9973,910,4844,213,7384,211,4124,058,088 Sewage2,140,9982,448,7902,742,7062,718,9042,799,7612,748,276 Liquor2,697,0703,098,7303,570,8762,925,687382,339444,433 Cemetery36,09522,47821,27622,11322,11321,643 FiberOptics(4,897,175)(2,567,497)(3,324,639)(6,621,683)253,525 TotalEnterpriseFunds 2,865,3686,382,4986,920,7033,258,7597,415,6497,275,965 InternalServiceFunds ITServices(Authorized) CentralEquipment(Authorized) TotalInternalServiceFunds TotalAllFunds 31,293,976$34,663,940$43,717,280$39,130,250$37,102,559$22,573,736$ FUNDBALANCE/WORKINGCAPITALHISTORY FiscalYearEndedDecember31, 45 STAFFINGSUMMARY STAFFINGHISTORY Staffing,asmeasuredbyfull-timeequivalents,hasbeenrelativelystableforthelastfiveyears.Many employeesperformacrossmultipleactivities/divisionsandfunds.Thetablebelowdoesnotreflect thepart-timecommunitycenteremployees. AmendedAdopted ActualActualActualBudgetProjectedBudget 200920102011201220122013 GeneralFund CityAdministration1.851.851.851.851.851.85 Finance4.004.004.004.004.003.75 ITServices0.350.350.350.350.350.35 HumanResources1.001.001.001.001.001.00 Planning&Zoning1.301.301.301.301.301.30 CityHall1.401.401.401.401.401.40 BuildingInspections3.003.003.003.003.003.00 PublicWorksAdministration2.502.502.502.502.502.50 Engineering1.601.601.601.601.601.60 PublicWorksInspections1.301.301.301.301.301.30 Shop&Garage1.501.501.501.501.501.50 Steets&Alleys10.3010.3010.3010.3010.3010.30 Ice&Snow2.202.202.202.202.202.20 ParkOperations6.856.856.856.856.856.85 ShadeTree0.400.400.400.400.400.40 EconomicDevelopment0.700.700.700.700.70 TotalGeneralFund 40.2540.2540.2540.2540.2539.30 SpecialRevenueFunds EconomicDevelopment0.300.300.300.300.301.00 DeputyRegistrar5.005.006.006.006.006.00 MonticelloCommunityCenter8.408.408.408.408.408.40 TotalSpecialRevenueFunds 13.7013.7014.7014.7014.7015.40 EnterpriseFunds Water3.153.153.153.153.153.15 Sewage3.153.153.153.153.153.15 Liquor10.1010.1010.1010.1010.1010.10 FiberOptics7.007.457.457.457.457.45 TotalEnterpriseFunds 23.4023.8523.8523.8523.8523.85 TotalAllFunds 77.3577.8078.8078.8078.8078.55 NUMBEROFFULL-TIMEEQUIVALENTS FiscalYearEndedDecember31, 46 LEGALDEBTLIMITANDBONDRATINGS DebtLimit:Minnesota citiesmaynotincurdebtinexcessofthreepercentofthemarketvalueoftaxable propertyinthecity(thelimitis2percentinFirstClasscitiesunlessacharterprovidesahigherrate,butevenso thishigherrateiscappedbylawat32/3percent).Butexceptedfromthisoverallthreepercentlimitarealmost alldebtobligationsforwhichsomeothersourceofrevenueispledgedassecurity.Thus,improvement assessmentbonds,taxincrementbonds,utilityrevenuebonds,purerevenuebonds,capitalimprovement bondsunderanapprovedcapitalimprovementplan,judgmentbondsandsimilarbondsmaybeissued withoutregardtothestatutorydebtlimit.(Theremaybeotherrequirementsforbondsthatareexemptfrom thedebtlimit;forexample,capitalimprovementbondsmustbeapprovedbyanaffirmativevoteofthree- fifthsofthemembersofafive-membergoverningbody.)Theresultisthat,withonlyafewexceptions,the onlyobligationssubjecttothedebtlimitaregeneralobligationbondspayablesolelyfromadvaloremproperty taxes.Thelegaldebtlimithasnothingtodowiththepracticaldebtlimitofacity,whichisthedebtburden beyondwhichthecredit-worthinessofthecityisputintoquestion.(SeeMinnesotaStatutes,Section475.53) AnticipatedBorrowingthisFiscalYear:ForFY13,thecityisexpectedtoissueG.Orevenuebondsforsewage treatmentplantimprovementsandG.O.capitalequipmentnotesforequipmentwithusefullivesoffiveyears ormore.Thesizeoftherevenuebondissueisdependentonthescopeoftheimprovementproject,which maycostasmuchas$6.1million.Thecapitalequipmentnoteissueisnotexpectedtoexceed$500,000. BondRatings:Thecity’smostrecentgeneralobligationbondratingwasdoneinSeptember2012.Moody’s ratedthecity’sG.O.debtan“A2”anditsleaserevenue(communitycenter)debtan“A1”,whichisinthe“mid- rangeoftheuppermediumgrade”.Thisisgenerallydescribedas“strong,investmentgrade”creditby Moody’s. Marketvalue(payable2013)1,190,323,200$ Debtlimit(3%ofmarketvalue)35,709,696$ Debtapplicabletolimit Othergeneralobligationbonds7,986,000$ Lessgeneralobligationbonds notsubjecttothelimit(4,786,000)$ Totalnetdebtapplicabletolimit3,200,000$ Legaldebtmargin32,509,696$ LegalDebtMarginCalculationforFiscalYear2013 47 DEBTSERVICELEVYHISTORY Mostofthecity’sdebtissuesaresupportedonsomelevelbypropertytaxes.Anexceptionwould bethefiberopticrevenuebonds,whicharesolelysupportedwithsystemrevenues.Thefiber opticbondsarecurrentlyindefault.Additionally,asliverofthe2008Sewerbondsaresupported directlywithSewageFundrevenues.Thecommunitycenter’sspecialrevenuefundisaconduitfor taxesleviedtosupportthe2008MCC(MonticelloCommunityCenter)bonds. Year2010AImp.2005AImp2007AImp.2008Sewer2008AMCCTotal 2009-$160,583$196,916$478,057$700,000$1,535,556$ 201074,798248,724414,780496,231805,0002,039,533 201152,000244,131418,306430,000815,0001,959,437 201250,000251,906416,846500,000890,0002,108,752 201325,000245,000420,000500,000875,0002,065,000 201425,000248,000420,000500,0001,037,0002,230,000 201525,000205,000420,000500,0001,001,0002,151,000 201625,000207,000420,000500,0001,152,000 201725,000206,000420,000500,0001,151,000 201825,000215,000420,000500,0001,160,000 201925,000185,000210,000 202025,000185,000210,000 202125,000183,000208,000 202225,000187,000212,000 2023185,000185,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 200920102011201220132014201520162017201820192020202120222023 DebtServiceLevy(2009-2023) 2010AImp.2005AImp 2007AImp.2008Sewer 2008AMCC 48 G.O.DEBTSERVICE Currentgeneralobligation(G.O)debtwillseerapidamortizationoverthenexttenyears,withthe biggestdeclineoccurringin2017.Theschedulebelowreflectstherefinancingof2005A improvementbondswith2011Abonds.OtherG.O.bondsrepresentamountspaidonmultiple retireddebtissues. YearOtherG.O.2010AImp.2005AImp.2007AImp.2008Sewer2008AMCCTotal 20092,093,995$-$3,233,732$692,600$1,048,862$812,760$7,881,949$ 2010293,3853,178,413811,4001,048,971802,6006,134,769 2011293,760200,7633,120,481807,0001,049,1791,102,0806,573,263 2012459,9783,053,238733,2001,048,4271,100,8806,395,723 2013447,7253,011,413734,9001,049,7821,074,1206,317,940 2014360,1502,880,150735,6001,049,1251,037,3606,062,385 2015302,3992,460,250730,4001,048,4741,000,7605,542,283 2016304,0502,423,950729,3001,048,786-4,506,086 2017304,618783,650663,5001,049,002-2,800,770 2018299,324779,350663,0001,049,087-2,790,761 2019298,355428,350---726,705 2020301,653430,650---732,303 2021304,050425,825---729,875 2022-428,750---428,750 2023-426,300---426,300 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 200920102011201220132014201520162017201820192020202120222023 G.O.DebtServicePaid/Due(2009-2023) OtherG.O.2010AImp.2005AImp.2007AImp.2008Sewer 2008AMCC 49 G.O.DEBTLEVELS Currentgeneralobligation(G.O)debtlevelshavedeclinedrapidlyoverthepastfouryears,largely theresultof2005Aimprovementbondissueamortization.Therapidamortizationofdebtreflects anopportunityforfinancingnewprojectsincludedinthecapitalimprovementprogram(CIP).The schedulebelowreflectstherefinancingof2005Aimprovementbondswith2011Abonds.Other G.O.bondsrepresentamountspaidonmultipleretireddebtissues. YearOtherG.O.2010AImp.2005AImp.2007AImp.2008Sewer2008AMCCOutstanding 2009520,000$3,095,000$20,460,000$5,585,000$8,196,000$5,555,000$43,411,000$ 2010265,0003,095,00018,110,0004,985,0007,415,0004,920,00038,790,000 2011-3,095,00015,705,0004,365,0006,607,0003,960,00033,732,000 2012-2,680,00013,255,0003,795,0005,742,0002,970,00028,442,000 2013-2,275,00010,735,0003,200,0004,848,0001,975,00023,033,000 2014-1,955,0008,055,0002,580,0003,924,000985,00017,499,000 2015-1,690,0005,745,0001,940,0002,968,000-12,343,000 2016-1,420,0003,425,0001,275,0002,012,000-8,132,000 2017-1,145,0002,715,000650,0001,023,000-5,533,000 2018-870,0001,995,000---2,865,000 2019-590,0001,615,000---2,205,000 2020-300,0001,225,000---1,525,000 2021--830,000---830,000 2022--420,000---420,000 2023------- $- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 20092010201120122013201420152016201720182019202020212022 Millions G.O.DebtOutstanding(2009-2022) OtherG.O.2010AImp.2005AImp.2007AImp.2008Sewer 2008AMCC 50 INTERFUNDTRANSFERS INTERFUNDTRANSFERS Operatingtransferssupporttheoperationsofotherfunds,provideforspecialprojects,and contributetodebtservicepayments.Thefollowingscheduleprovidestheoperatingtransfersinthe 2013Budget. FundNo.TransferInFund Amount FundNo.TransferOutFund Amount 212EconomicDevelopment80,000$101GeneralFund80,000$ 226CommunityCenterFund100,000400CapitalProjectsFund100,000 229ParkandPathwayFund600,000300ClosedBond600,000 3122005AGOImprovementBond1,798,879212EconomicDevelopment319,403 401SanitarySewerAccess704,576 402StormwaterAccess262,000 406StreetConstruction150,000 601Water362,900 315 2008AGOSewerRevenueBond 450,000401SanitarySewerAccess450,000 3142008AGORevenueBond875,000226 MonticelloCommunityCenter 875,000 3172010AGOImprovementBond308,195401SanitarySewerAccess128,795 402StormwaterAccess59,800 406StreetConstruction69,000 601Water50,600 400CapitalProjectsFund766,300212EconomicDevelopment455,000 405StreetLighting96,300 406StreetConstruction215,000 655FiberOptics220,000609Liquor220,000 TotalTransfersIn5,198,374$TotalTransfersOut5,198,374$ SCHEDULEOFOPERATINGTRANSFERS 51 LONG-TERMFISCALOBJECTIVES Thecitycouncilandstaffarecommittedtoexpendingpublicresourcesinthemostcost-effectiveand economicalmannerpossibletoinsurethestabilityofthecitypropertytaxlevy.Inlightofchangesto taxpolicy,stateaidreductionsforvariouspurposes,stateimposedlevylimitsinprioryears,andthe potentialoffuturelevylimits,fiscalstrategieswillneedtobeconstantlymonitoredtoensurea balancedapproachinprovidingsufficientrevenuestofundservices: 1.Employastrategyaimedatreducingthecity’srelianceonpropertytaxlevytofundbasic servicesthrough“sustainable”revenuesourcessuchasfranchisefees,specialrevenues,userfees, andforservicetransactions. Thecity’spropertytaxlevygeneratesover80%oftheGeneralFund’srevenue.Thisover dependenceislargelyattributabletoahealthytaxbase,whichincludesanuclearpowerplant.The city’staxlevyhasnotkeptpacewithinflationandcurrentcouncilphilosophyseemstoindicatethat thistrendwillcontinue.Whileagrowthplusinflationtaxlevyformulawouldnotreducethe dependenceonpropertytaxes,itwouldalleviatethestrainplacedoncityfinancesbyinflation.City serviceswillcontinuetobeevaluatedintermsofidentifyingallrelevantfundingsourcesto underwritespecificserviceexpenditures,promotingalternativestotraditionalfunding methodologiesandencouragingpublic-privatepartnershipsinservicedeliverysystems. 2.Thedevelopmentanduseofappropriatecostaccountingstructurethatwillleadtothe creationofindividualcostcentersforallcitydepartmentactivitiestoaccuratelyreflectthetrue costofprovidingspecificservices. Thecityemployeesacostaccountingsystemthatisdepartmentspecificthatattemptsto accuratelyreflectservicedeliverycostsatthedepartmentanddivisionlevels.Byincludingall supplementalservicesastheyrelatetopersonnel,chargesandservices,supplies,andcapitaloutlays willfurtherdistinguishthetotalcostofserviceprovided.Thecityhastheabilitytoanalyzethese costsatthesub-categorydetaillevelsinsupportofoverallpolicygoals. 3.Theadoptionofafinancialphilosophythatseekstospreadthecostofsignificantcapitaloutlay expendituresoveranextendedperiodoftimetoensurethatcurrentandfuturetaxpayersshare equallyinunderwritingofthosecosts. Thecitycontinuestocapitalizethecostofsignificantcapitalexpendituresoverseveralyears toensurethatbothexistingandfuturetaxpayersshareequallyinthecost.Inaddition,thecityhas dedicatedaportionofthelevytounderwritethecostofselectedcapitalprojectsandequipment, avoidingafiscalenvironmentbasedonreactivetaxandspendpolicies.Thefiveyearcapital improvementplanningprocessiscriticalinachievingtheseresults. 52 4.Thedevelopmentofalong-termfinancialmodel(proforma)thatidentifiesanticipatedtrends incommunitygrowth,andestablishesalinkbetweenfiscaltargetsandbudgetaryexpenditures. Thecityisintheprocessofdevelopingandmaintainingafinancialmodeltodeterminethe long-termimpactsofpresentdayexpendituresandfinancingdecisions.Fiscalassumptionsarebased uponacomplexsetoffinancialdataincludinggrowthfactors,taxcapacityvaluations,percapita spending,anddebtratios.Theproformaisutilizedasatoolaspartofthebudgetplanningprocessto ensurethatkeyshort-termfiscaltargetsareinlinewithlong-termfiscalprojections.Thecitywill continuallyupdatetheproformatoensurethatkeyshort-termtargetsareinlinewithlong-term fiscalprojections.Thecitywillcontinuallyupdatetheproformatoensurethatlong-termfiscal outcomesremainconsistentwithcouncilbudgetarypolicies. 5.Thedevelopmentofworkperformancegoalsforeachdepartmenttoascertainandmeasure howeachoperatingdivisioncontributestothecity’soverallpublicservicemission. Eachdepartmentisresponsibleforidentifyingrelevantperformancedatatoallowforan independentanalysisofspecificserviceoutcomes.Dataisreviewedtoprovidethecounciland generalpublicwithabetterunderstandingoftheoperationaldemands,resourceinputsand performanceoutcomesassociatedwithaspecificservicedeliverysystem. 6.Theaggressiveandappropriateinvestmentofidlecityfundstomaximizethegenerationof interestincome,whileensuringadequatecashflowrequirements. Investmentofcityfundsiscontrolledbystatestatuteandmanagedbythefinancedirector. Idlefundsareinvestedinavarietyoffinancialinstrumentssuchascertificatesofdeposit,federal agencies(FHLMC,FNMA,etc.)andappropriatelyratedbonds.Long-terminvestingisdesignedto achievethebestyieldinthecurrentmarket,followingastrategythatstructureslong-term investmentsinladderformatandreinvestsshort-terminvestmentinrotatingtermsofuptwoyears. 7.Greaterrelianceontechnologytoenhanceemployeeproductivityinallareasofcityoperations andimprovecustomercommunications. Thecityhastakenstepstoinvestadditionaltimeandenergyonlaborsavingtechnology,such assoftwareprogrammingandelectronicallyconvertingpaperfiles.Staffhasdiscussedtheneedto lookatopticimagingsolutions.Imagingcityrecordswillenablethecitytoreducestorageareas presentlydedicatedtopaperfilesandlookatmoreeconomicalandefficientsystemsofdata retrieval. 8.Involvingallemployeesintheprocessofre-engineeringtheworkenvironmentbyencouraging cross-trainingopportunities,reducingandeliminatingbureaucraticbarriers,streamliningpublic processrequirements,andadoptingprivatesectorcustomerservicebusinessvaluesincity operations. 53 Citystaffisencouragedtoidentifyworkpracticeissuesthatareinefficientoroverly bureaucratic.Themanagementteamiscommittedtoinvolvingtheiremployeesandfosteringan environmentthatchallengesthestatusquoofcityoperations. 9.Continuouslyreviewingopportunitiestoforpartnershipswithneighboringcommunitiesto shareservicesandequipment,jointlypurchaseequipmentanddevelopstrategiestodealwith localissuesusingaregionalapproach. Thecityhasestablishedseveralequipmentandservicedeliverysharingarrangementswith neighboringcommunitiesandhasseveraljointpowersagreementsinplaceonavarietyoflocaland regionalissuesintheareaofpublicsafetyandpublicworksinitiatives. 54 REVENUETRENDS&ANALYSIS Revenuesareestimatedforeveryfundofthecityeachyear.Thissummaryofrevenueestimatesis supportedbydetailedrevenueestimatesforeachfundinlatersections.Thissectionofthebudget highlightsmajorrevenuesourcesforallthecityfundsascombinedandforeachmajorgovernmental andenterprisefund:theGeneralFund,MonticelloCommunityCenter,andDeputyRegistrar governmentalfunds,alongwiththeWater,Sewage,andLiquorenterprisefunds.Trendsofthesefunds andindividualrevenuesareshowntogetherwithestimatesforthecomingyear. TOTALCITYREVENUESANDOTHERSOURCES 200920102011201220122013% TOTALALLFUNDSACTUALACTUALACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes7,484,104$7,304,269$7,319,010$7,850,000$7,865,586$7,900,000$0.6% TaxIncrements1,202,2401,165,2031,050,563881,630945,725681,240-22.7% Franchise&OtherTaxes306,609315,761321,584350,500343,559366,5004.6% SaleofGoods4,352,5704,477,6514,653,3854,418,5004,461,5004,461,5001.0% Licenses&Permits290,131231,370258,526245,100278,373274,68012.1% IntergovernmentalRevenues910,453717,906881,560252,440615,625918,209263.7% ChargesforServices4,478,0606,033,3697,087,8757,303,2046,556,5836,656,875-8.8% Fines&Forfiets1,220255851501,600100-33.3% SpecialAssessments2,423,9311,621,4412,009,1842,035,3881,609,6981,336,245-34.3% Miscellaneous1,413,5152,033,5524,078,7971,288,6881,249,2301,194,965-7.3% ContributedCapital-143,433------- OperatingTransfers10,182,4165,237,7104,041,6806,591,60313,344,1785,198,374-21.1% DebtProceeds5,710,67315,022,42014,655,3766,000,000-6,100,0001.7% TOTALREVENUES38,755,922$44,304,340$46,357,625$37,217,203$37,271,657$35,088,688$-5.7% Propertytaxesaccountforthesinglelargestrevenuesourceforthecity.Othersourcessuchas operatingtransfers(in)anddebtproceedsoccasionallysurpasspropertytaxes,buttheygenerally donotsupportday-to-dayoperations. TaxIncrementsarethemainsourceofrevenuefortheEconomicDevelopmentFund.Thisfund accountsforthecity’staxincrementfinancing(TIF)districts.OneTIFdistrictwasdecertifiedin 2012andanotherTIFdistricthadparcelswithinthedistrictdecertified. Licenses&permitsarecomprisedprimarilyofbuildingpermits,whichisexpectedtobeevenwith 2012projections. Intergovernmentalrevenuesareexpectedtoincreasewithstateaidforthe7 th streetproject. Withastrongcommercialtaxbase,thecitygenerallydoesnotqualifyformuchstateaidthatis notprojectspecific. Chargesforservicesdonotreflectchangestothefeescheduleoccurringafteradoptionofthe budget.Thecityusesconservativerevenuebudgetingpracticestoensurerevenueswillbe sufficienttomeetoperatingneeds. 55 Specialassessmentsprimarilysupportdebtservicefunds.Twoparcelswithlargeassessmentsare expectedtobedelinquentinthecurrentandfutureyears. Miscellaneousrevenuesareestimatedtodeclineasaresultofloweryieldsoninvestments.The amountofinvestiblefundsisexpectedtobestable.Overallrevenuesandothersourceslag expendituresandotheruses,butmostofthedifferenceismoneyheldintrustforredeeming bondsin2013. Operatingtransfers(In)areexpectedtodeclinewithfewerprojectstosupportwithinternal sources.In2012,thecitymadesignificantunbudgetedtransferstoreduceinterfundloan balances.In2013,operatingtransfersarelargelycomprisedofmoneygoingtodebtservicefunds fortheannualprincipalandinterestpaymentsonbondeddebt. Debtproceedsareestimatedat$6.1millionforsewagetreatmentplantimprovements.Currently, approvedprojectsrelatedtotheupgradestotallessthan$3million. Thechartbelowprovidesanoverallpictureofthecity’srevenuesandothersources. Property Taxes 22% Saleof Goods 13% Chargesfor Services 19% Operating Transfers 15% Debt Proceeds 17% AllOther 14% RevenueandOtherSources (AllFunds) PROPERTYTAXES Thecityreliesonpropertytaxestosupportsuchfunctionsasgeneralgovernment,publicsafety, publicworks,recreationandculture,anddebtservice.For2013,thecounciladoptedalevyof $7.9million,whichis$50,000(.6%not6%)morethantheprioryear.Thetaxlevyhasbeen relativelyflatforthelastfiveyearsandtrailsincreasesintheConsumerPriceIndex(CPI)overthe sametimeperiod. 56 Thefollowingchartreflectsthechangesinthetaxlevyoverthelasttenyears: $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 2004200520062007200820092010201120122013 PropertyTaxLevy Accountingforavarietyofactivities,theGeneralFundwillreceive70%ofthe2013propertytax levy.Indeed,propertytaxesprovideapproximately82%oftheGeneralFund’srevenue.Thelevy fortheMonticelloCommunityCenterhastwocomponents:operationsanddebtservice.The operationscomponentis$295,000andthedebtservicecomponentis$875,000,ortogether $1,170,000.Thefollowingchartrepresentsthedistributionofthetaxlevyfor2013. GeneralFund, $5,540,000, 70% MCC Operations, 295,000,4% DebtService*, 2,065,000, 26% PropertyTaxLevy(Adopted2013) Whendeterminingthepropertytaxlevy,thecitycouncilandstaffconsidertheimpactthelevy willhaveonvariouspropertyowners.Thisimpactisthenbalancedagainstservicesprovidedand 57 servicelevels.Thecitywasabletofundservicesatcurrentlevelswhilereducingthelevyinpast yearsduetoagrowingeconomyandincreasedpropertyvalues.However,propertyvalueshave declinedoverthepastseveralyearsasresultofaweakernationalandlocaleconomy.Estimated marketvaluesareconvertedtotaxcapacitybyusingspecificstateformulasforvarioustypesof properties.In2013,thetaxcapacitygrewahealthy$2.9million(18.6%)to$18.7million.Why? Thenuclearpowerplantlocatedwithinthecitylimitsaddedovera$160millioninnewtaxable valuewithcapitalequipmentupgrades.Theimpact:mostcitytaxpayerswillseetheirproperty taxesin2013dropbyover10%. Inastablelevyenvironment,taxcapacityandtaxcapacityrateswilltypicallyhaveaninverse relationship.Thefollowingchartdemonstratesthatrelationshipoverthelast15years: $9.6M $15.8M 67.645 42.234 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Tax Capacity Rate Tax Capacity Value (millions) TaxCapacityValuesandTaxCapacityRates TaxCapacityValue TaxCapacityRate GENERALFUND TheGeneralFundisusedtoaccountforallfinancialresourcesofthecity,exceptforthoserequiredto beaccountedforinanotherfund.Majorfunctionssupportedbygeneralfundrevenuesinclude:city andfinanceadministration,policeandfireservices,publicworks,recreationandculture.Revenueis estimatedtobe$6,786,969millionforthe2013budgetyear.TheGeneralFundprimarysourceof revenueispropertytaxesat$5,540,000,whichaccountsfor82%ofthetotal.Noothersingle categoryofrevenuesexceeds4%oftotalrevenues. TheGeneralFundisnotsupportedbyanytransfers(othersources)fromotherfunds.Thefollowing chartdepictsGeneralFundrevenuesasrepresentedinthe2013adoptedbudget: 58 Property Taxes,82% GeneralFundRevenues PropertyTaxes Franchise&OtherTaxes Licenses&Permits IntergovernmentalRevenues ChargesforServices AllOther GeneralFundrevenuespeakedin2008alongwithpropertytaxesandlicensesandpermits.Since 2008,licensesandpermitshavecomprisedarelativelylesssignificantportionoftheoverallrevenues. Licensesandpermitsconsistmostlyofbuilding-typepermitsandhavegreatlydeclinedalongwiththe economyandcommercialandresidentialconstruction.Peakingin2008above$1million,license& permitsareestimatedat$270,980for2013.ThechartbelowrepresentsGeneralFundrevenuesover thelasttenyears,with2012projectedand2013budgeted: $- $1 $2 $3 $4 $5 $6 $7 $8 $9 2004200520062007200820092010201120122013 M illio n s GeneralFundRevenues PropertyTaxes Licenses&Permits AllOther 59 MONTICELLOCOMMUNITYCENTER TheMonticelloCommunityCenter(MCC)providesafacilitywithspaceforavarietyofrecreational, professional,andeducationalopportunities.Asidefromitsportionofthepropertytaxlevy,theMCC issupportedbyavarietyoffeesformemberships,activities,rental,andconcessions.Councilpasseda revenuerecoverypolicyalongwithbudgetadoptionthatnowrequirestheMCCtocover85%ofits operatingcosts—includingequipment—withfeesandcharges. Inthefollowingchart,2008through2011areactualamounts,2012isprojectedand2013is estimated.The2013estimatesreflecttheimplementationofthenewrevenuerecoverypolicy. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 UserFeesRentalActivitiesConcessions MCCMajorRevenues 2008 2009 2010 2011 2012 2013 DEPUTYREGISTRAR(aka:DMV) ThecityisauthorizedbytheStateofMinnesotatooperateaDMV.Feescollectedfromissuanceof motorvehicleandDNRlicensesaretheDMV’smainrevenuesource.Thefeesareregulatedbythe state.Astateapprovedfeeincreasealongwithaslightlybettereconomyresultedinhigherrevenues in2012.Withdarkershadesofgreenrepresentinghigher(better)numbersinconditionalformatting, thefollowingchartshowsthehistoryofDMVrevenuesoverafiveyearperiod. DMVRevenue Month20082009201020112012Average Jan20,597$22,726$21,961$21,372$37,534$24,838$ Feb23,84724,32027,58127,62442,74829,224 Mar27,01424,04535,77733,57350,45934,174 Apr29,30327,99835,13832,09844,25133,757 May28,87126,37327,00033,92037,75130,783 Jun21,56227,27431,17032,73243,37831,223 Jul27,64524,44129,57727,59738,58929,570 Aug19,02925,84926,41038,37639,50729,834 Sep22,15624,47926,47233,65831,89027,731 Oct18,82421,66622,09329,20636,49125,656 Nov15,24323,46520,60329,13129,24123,537 Dec22,82726,55326,89425,93127,10925,863 Total 276,919$299,188$330,677$365,217$458,948$346,190$ Transactions 51,50853,59255,94458,25762,99956,460 60 WATERANDSEWAGEFUNDS WaterandsewagechargesforservicesareprimarilycomprisedofprovidingMonticelloresidentsand businesseswithwaterandsewageservices.Basedpartiallyonthelevelofconsumption,theseutility fundseachhaveseparatechargesfordeliveredservices.Thecitysetratestocoveroperatingcosts,a portionofdepreciation,anddebtservice.Asnewdevelopmentslowed,theburdenoninfrastructure replacementcostsshiftedtoutilityratesfromimpact(access)charges.Thewaterandsewagefunds areexpectedtoprovidesomeleveloffuturesupportfordebtserviceincurredtomakewaterand sewagesystemimprovements. Waterandsewagerevenuegrewwiththecommunityfrom2004to2007asconsumptionandrates increased.Afterward,revenuescontinuetoclimbsolelyontheincreasesinrate.Thefollowingchart plotsrevenuesforwaterandsewageserviceontheprimaryaxis(left)againstwatersalesonthe secondaryaxis(right): - 100 200 300 400 500 600 700 $- $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 2004200520062007200820092010201120122013 G al l o n s S o l d ( M i l l i o n s ) R e v e n u e s ( M i l l i o n s ) Water&SewageRevenue Water Revenue Sewage Revenue H2OSold (Gals) Waterservicechargeshavetwocomponents:basechargewithaminimumusageamountand consumptionchargeforusageabovetheminimumamount.Bothchargeshaveincreasedsteadily overthelastnineyears:averagebasechargeandconsumptionchargeincreases8.4%and9.6%, respectively.For2013,boththebasechargeandconsumptionchargewillincreaseby10%.Therate increasewaspassedaftertheadoptionofthebudgetanditisnotrepresentedintheabovechart. Sewagecharges,similarlytowatercharges,havetwocomponents:basechargewithaminimum usageamountandconsumptionchargeforusageabovetheminimumamount.Bothchargeshave increasedsteadilyoverthelastnineyears:averagebasechargeandconsumptionchargeincreases 8.5%and8.9%,respectively.For2013,boththebasechargeandconsumptionchargewillincreaseby 10%.The2013rateincreasewaspassedaftertheadoptionofthebudgetanditisnotrepresentedin theabovechart. 61 Thefollowingchartreflectsthewaterandsewagebaseratesoverthelasttenyears: $- $5 $10 $15 $20 $25 2004200520062007200820092010201120122013 Q u arterly Ch a rg e SewageandWaterBaseRates Sewage Water LIQUORFUND Liquorsaleshaveincreasedoverthelastfiveyearsandthebudgetreflectsthistrend.TheLiquor Fundhasoneretailoutlet:Hi-WayLiquors.Thisfundprovidesvitalresourcesformanycommunity projectsincludingcommunitycenterandstreetimprovements.Conservativerevenueestimatesare usedforbudgetingpurposes.However,2013netcashflowfromoperationsshouldtop$500,000.In prioryears,interestearningscontributedsignificantlytonetcashflows.Operatingtransfersoutin 2012depletedcashandwillcurtainfutureinterestearnings. With2012salesofover$4.8million,revenuesareexpectedtotop$5millioninthenextcoupleyears. Totalsaleshaveclimbedanaverageof4%forthelastfouryears;winehasthefastestcategory growthwithanaverageabove13%overfouryears,butgrewataratebelowaveragein2012. $- $1 $2 $3 $4 $5 20082009201020112012 Millions Hi-WaySalesbyCategory Wine Liquor Beer 62 APPROPRIATIONSBYTYPE Expenditures,oftencalled“Appropriations,”areclassifiedunderoneofsixmajorcategories: personnelservices(wages&benefits),supplies,otherservices&charges(professionalfees, utilities,etc),capitaloutlay,debtservice,andoperatingtransfers(otherfinancinguses).Thegraph belowshowstherelativepercentageofFY13budgetedexpendituresforthesesixmajorcategories forallfunds,combined.Itexcludesdebtservicepaidfromanadvancerefundingescrowaccount. Personnel Services 15% Supplies 12% CapitalOutlay 16% OtherServices &Charges 28% DebtService 16% Operating Transfers 13% 2013AppropriationsbyType-AllFunds APPROPRIATIONSBYTYPE,GENERALFUNDONLY—Usingthosesamecategoriesofexpenditure type,therelativepercentagesofbudgetedexpendituresfortheGeneralFundareshownbelow.As youcansee,theGeneralFundiscomprisedofamuchhigherpercentageofpersonnelservicescosts comparedtoallfunds,asawhole.TheGeneralFundsupportsverylittlecapitalimprovementsand nodebtservicecomparedtoallfunds,asawhole. Personnel Services 41% Supplies 7% CapitalOutlay 2% Other Services& Charges 49% Operating Transfers 1% 2013AppropriationsbyType-GeneralFund 63 Ingovernmentalagencies,salaries,wagesandbenefits(personnelservices)normallyrepresentthe largestofthesecategories.However,duetothesignificantinvestmentininfrastructure,citieshave amuchhigherpercentageofthebudgetdevotedtooperatingandcapitalcosts,includingdebt service,thanmostothergovernmentalagencies.Oneotherfactor:thecitycontracts(otherservices andcharges)forlawenforcement,legalandassessingservices. Asshown,enterprisefunds,debtservicefundsandtheGeneralFundaccountfor74%ofthetotal expendituresofthecity. TheGeneralFundisthecity’sprimaryoperatingaccountforgeneralgovernment operations. Debtservicefundsincludeonlynon-enterprisefunddebt.Thesefundsare supportedwithpropertytaxes,specialassessments,taxincrements,andaccessfund transfers.Thegraphexcludes$10.8milliontobeexpendedfromanadvance refundingescrowaccounttoretirebonds. Enterprisefundsconsistofwater,sewage,liquor,cemetery,andfiberopticsfunds. Thesefundsoperateonaself-supportingbasis. Specialrevenuefunds,totaling16%ofappropriations,includeavarietyoffeesupportedfunds includingthecommunitycenteranddeputyregistrar(DMV). CapitalProjectFunds,totaling14%ofappropriations,includeavarietyofutilityaccessfundsand capitalassetacquisitionfunds,excludingthosepurchasedthroughenterprisefunds. GeneralFund 17% Special Revenue Funds 12% DebtService Funds 16% Capital ProjectFunds 14% Enterprise Funds 41% 2013AppropriationsbyFund-Type 64 GENERALFUND-SUMMARY FUNDDESCRIPTION Oneoffivegovernmentalfundtypes,theGeneralFundservesasthechiefoperatingfundofthe city.TheGeneralFundisusedtoaccountforallfinancialresourcesnotaccountedforinsomeother fund.Thefundusesthemodifiedaccrualbasisofaccountingforbudgetingandfinancialreporting purposes.Thismeansexpendituresarerecordedwhentheliabilityisincurredandrevenuesare recordedwhentheybecomemeasurableandavailable.TheadoptedGeneralFundbudgetisa balancedbudget--currentrevenuesandothersourcesequalexpendituresandotheruses. ISSUES TheGeneralFund’slargestrevenuesourceispropertytaxes.Thepropertytaxlevyhasbeen relativelyflatsince2008andithasnotkeptpacewithinflation.ThePublicWorksDepartmenthas thelargestappropriationfor2013. GENERALFUND 200920102011201220122013% REVENUESACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PropertyTaxes5,159,274$5,075,506$5,148,326$5,456,248$5,478,221$5,540,000$1.5% Franchise&OtherTaxes19,74018,17793,368200,500193,559236,50018.0% Licenses&Permits276,903223,494258,206241,400274,673270,98012.3% IntergovernmentalRevenues545,806328,757261,553252,440290,625284,50912.7% ChargesforServices697,2521,342,545398,410355,255281,588272,610-23.3% Fines&Forfiets1,220255851501,600100-33.3% SpecialAssessments7,7635,1163,550-257300--- Miscellaneous378,088373,946436,769242,405223,259181,970-24.9% OperatingTransfers469,11465,000------- TOTALREVENUES7,555,160$7,432,796$6,600,267$6,748,398$6,743,782$6,786,969$0.6% EXPENDITURESBYDEPARTMENT GENERALGOVERNMENT MayorandCouncil60,492$52,653$52,078$63,379$53,800$53,925$-14.9% CityAdministration278,810212,246238,736214,143236,858240,29212.2% Elections95537,2571,00041,35841,3573,142-92.4% Finance393,885376,650377,399349,774354,777338,525-3.2% Audit41,00037,60042,72029,00042,00040,00037.9% CityAssessing50,51849,59849,03250,25049,70051,2151.9% Legal71,039103,28842,49156,00050,20051,200-8.6% HumanResources63,90280,66474,53790,13290,42792,2402.3% Planning&Zoning145,367108,966173,918170,252175,052168,128-1.2% InformationTechnologyServices239,059105,911116,790148,497144,010158,5096.7% CityHall229,058269,262223,887253,355250,059234,361-7.5% PrairieCenterBuilding617,23039,25126,91133,57519,27519,200-42.8% TOTALGENERALGOVERNMENT2,191,315$1,473,346$1,419,499$1,499,715$1,507,515$1,450,737$-3.3% Continued… 65 GENERALFUND200920102011201220122013% (Continued)ACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PUBLICSAFETY LawEnforcement1,064,389$1,093,658$1,121,370$1,139,600$1,139,200$1,150,290$0.9% FireDepartment775,821196,997195,801215,157223,993228,2716.1% FireRelief80,12766,75872,64767,00070,00070,0004.5% BuildingInspections306,897249,771245,272250,832267,122263,6365.1% CivilDefense7,8935,09226,8231,4001,7001,92537.5% AnimalControl57,08944,56145,82946,26149,48546,3350.2% NationalGuard20,63827,45820,66823,05022,25022,250-3.5% TOTALPUBLICSAFETY2,312,854$1,684,295$1,728,410$1,743,299$1,773,750$1,782,707$2.3% PUBLICWORKS PublicWorksAdministration238,824$236,134$181,639$221,678$222,293$224,970$1.5% Engineering245,232168,095220,078216,737221,446213,436-1.5% PublicWorksInspecitons119,27591,98645,749116,856116,132125,2927.2% Streets&Alleys778,648578,716615,836700,049701,946725,5993.6% Ice&Snow170,694189,119173,842220,880221,929219,515-0.6% Shop&Garage176,773180,051185,191170,010189,438183,7698.1% Stormwater30,54816,19416,55327,73832,68831,20812.5% ParkingLots3,6305,19411,74814,40410,3049,301-35.4% StreetLighting202,772198,893205,986197,600202,500216,5009.6% RefuseCollection547,160534,903495,693544,174511,410517,560-4.9% TOTALPUBLICWORKS2,513,556$2,199,285$2,152,315$2,430,124$2,430,086$2,467,150$1.5% RECREATIONANDCULTURE CommunityCelebrations2,072$1,359$39$2,450$3,315$3,300$34.7% SeniorCenter93,36773,13693,17190,02190,02091,0201.1% CommunityEducation12,740-495------ Transit---3,0003,0003,0000.0% IceArena75,00075,00075,00075,00075,00075,0000.0% ParkOperations635,012451,201559,156611,769634,417605,776-1.0% ParkImprovements76,2583,39880,3058,500---100.0% ParkBallfields29,51414,18818,54642,30042,30042,3000.0% ShadeTree22,98334,46044,47941,46241,46247,79215.3% Library42,66537,57836,28738,38538,38540,0974.5% TOTALCULTUREANDRECREATION989,611$690,320$907,478$912,887$927,899$908,285$-0.5% UNALLOCATED OAA1,043$717$-$830$830$830$0.0% EconomicDevelopment78,57460,255149,00881,10060,5000-100.0% Insurance190,454231,645249,98780,44364,26097,26020.9% TOTALUNALLOCATED270,071$292,617$398,995$162,373$125,590$98,090$-39.6% --- OTHERUSES --- OperatingTranfers345,313$1,204,000$650,000$-$2,326,995$80,000$--- TOTALOTHERUSES345,313$1,204,000$650,000$-$2,326,995$80,000$--- TOTALGENERALFUNDEXPENDITURES8,622,720$7,543,863$7,256,697$6,748,398$9,091,835$6,786,969$0.6% FUNDBALANCE-JANUARY16,245,664$5,178,104$5,067,037$4,410,607$4,410,607$2,062,554$ Excess(Deficiency)of RevenuesoverExpenditures(1,067,560)(111,067)(656,430)-(2,348,053)- FUNDBALANCE-DECEMBER315,178,104$5,067,037$4,410,607$4,410,607$2,062,554$2,062,554$ 66 TheprevioustablesummarizesGeneralFundrevenuesbyclassificationsandexpendituresby activities/divisionsanddepartments.Thetablebelowsummarizesbothrevenuesandexpenditures byclassifications. GENERALFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes5,159,274$5,075,506$5,148,326$5,456,248$5,478,221$5,540,000$1.5% TaxIncrements--------- Franchise&OtherTaxes19,74018,17793,368200,500193,559236,50018.0% Licenses&Permits276,903223,494258,206241,400274,673270,98012.3% IntergovernmentalRevenues545,806328,757261,553252,440290,625284,50912.7% ChargesforServices697,2521,342,545398,410355,255281,588272,610-23.3% Fines&Forfeits1,220255851501,600100-33.3% SpecialAssessments7,7635,1163,550-257300--- Miscellaneous378,088373,946436,769242,405223,259181,970-24.9% OperatingTransfers469,11465,000------- TOTALREVENUES7,555,160$7,432,796$6,600,267$6,748,398$6,743,782$6,786,969$0.6% EXPENDITURES PersonnelServices2,797,896$2,764,180$2,649,533$2,771,340$2,814,731$2,769,569$-0.1% Supplies444,208390,396511,611504,900481,780507,6750.5% OtherServices&Charges3,523,1263,173,0523,334,1083,363,0083,357,6793,324,666-1.1% CapitalOutlay1,362,14712,23533,062109,150110,650105,059-3.7% OperatingTransfers495,3131,204,000728,383-2,326,99580,000--- TOTALEXPENDITURES8,622,690$7,543,863$7,256,697$6,748,398$9,091,835$6,786,969$0.6% FUNDBALANCE-JANUARY16,245,664$5,178,134$5,067,067$4,410,637$4,410,637$2,062,584$ Excess(Deficiency)of RevenuesoverExpenditures(1,067,530)(111,067)(656,430)-(2,348,053)- FUNDBALANCE-DECEMBER315,178,134$5,067,067$4,410,637$4,410,637$2,062,584$2,062,584$ BUDGETCOMMENTARY: Revenues For2013,budgetedrevenuesareestimatedtoincreaseby.6%(not6%),whichisthesame percentageincreaseastheundividedpropertytaxlevy.TheGeneralFund’sportionofthetaxlevyis budgetedtorise1.5%.Propertytaxesaccountforgreaterthan80%ofGeneralFundrevenues.The GeneralFund’sallocationoffranchiseandothertaxesincreasedtomatchrelatedexpenditures (streetlighting).Licensesandpermits(building)areexpectedtoreboundwiththeeconomy. Chargesandservicedeclinedwiththelossofonetownshipfromthecity’sfireprotectionservices. Miscellaneousrevenuesareestimatedtofallwithinvestmentearningsonlowerinvestiblefunds. Expenditures Expendituresarebudgetedtobestableacrossallclassifications.Personnelservicesincludea9% healthinsurancebenefitincreaseandastepraisebutnocost-of-livingadjustment.Theseincreases areoffsetbydecreasesinstaffing.TheoperatingtransferoutistotheEconomicDevelopmentFund forexpendituresthatwereincurredintheGeneralFundinprioryears. 67 MAYORANDCITYCOUNCIL DEPARTMENT:GeneralGovernment SUPERVISOR:Mayor&Council FUND#:101 ACTIVITY#:41110 ACTIVITYSCOPE: Themayorandcouncilprovideelectedrepresentationtothecommunitywithcontrolovermatters ofpolicy,budget,administration,andoperationsofthecity.Membersparticipateinvarious committees,aswellasdirectstaff,throughthecityadministrator,astotheiroverallgoalsforthe city. OBJECTIVES: 1.Adoptpoliciesandordinancesconsistentwithcouncil’spositionongrowth,zoning,and financialstrategy. 2.Continuetoworkonthecompletionofthecity’snaturalresourceinventoryandtraffic plan. 3.Examinecityfacilityneedstomeetfuturecityoperations. 4.Continuetoworkwithcityadministratoronsuccessionplanningforthecity. ISSUES: 1.Developinganddocumentingacomprehensivevisionstatement,alongwithachievable goals,thatcapitalizeonthecity’suniqueness. 2.Successionplanningofcitystaff. 3.Operationofthecity’snewfiberopticnetwork. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Councilmeetings 23 23 23 23 23 Councilworkshops andspecialmeetings 27 20 25 20 23 Councilresolutions 80 80 93 85 85 BUDGETCOMMENTARY: Thecouncil’sbudgetremainsconsistentwithpreviousyears.Themayorearns$700permonthand eachcouncilorearns$600permonth. 68 BUDGET: GENERALFUND200920102011201220122013% MAYOR&COUNCILACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices39,772$39,873$39,690$40,479$40,500$40,500$0.1% Supplies118-19------ OtherServices&Charges20,60212,78012,36922,90013,30013,425-41.4% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES60,492$52,653$52,078$63,379$53,800$53,925$-14.9% 69 CITYADMINISTRATION DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41301 ACTIVITYSCOPE: Cityadministrationprovidestheoveralldirectionofthecity,asdeterminedbycouncilandmayor. Thecityadministratorservesaschiefadministrativeofficerforthecity,ensuringthatlaws, ordinances,andresolutionsofthecitycouncilareenforcedandimplemented.Theadministratoris alsoresponsibleformanagingtheoveralloperationsofallcitydepartments.Thedeputycityclerk's responsibilitiesinvolvethemanagementandretentionofallofficialrecordsanddocumentsofthe city.Theclerkisalsoresponsibleforallelectionprocedures. OBJECTIVES: 1.Assistcitycouncilinsettingpoliciesandproceduresinaccordancewithcouncil's position. 2.Providedirectionandleadershiponmajorcityprojects,budgetmanagement;oversee performanceevaluationandlong-rangeplanning. 3.Continuewithproactivesuccessionplanningregardingkeystaffingrollswithinthe city'sorganization. 4.Continueconvertingcitypermanentpaperdocumentstoelectronicformat. ISSUES: 1.Implicationsduetothedecreaseintaxcapacityandlevylimitsforthecity. 2.Long-rangecomprehensiveandsuccessionplanning. 3.Long-rangecomprehensivetrafficplanning. 4.Operationofthecity'sfiberopticnetwork. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 Councilmeetingsagendas3243484342 Recordsdigitallyconverted35%75%75%75%75% Councilminutesapproved2720252023 70 BUDGETCOMMENTARY: Theadministrationbudgetsfor2012and2013reflecttheshiftingofexpensesfromotherbudgetary units.Noadditionalpersonnelwereaddedinfiscalyear2012andnoadditionalpersonnelhasbeen budgetedfor2013.Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-living increaseanda9%healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremain closetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% ADMINISTRATIONACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices$250,568189,266$216,135$197,393$215,758$219,192$11.0% Supplies214941,56920030030050.0% OtherServices&Charges13,33622,88621,03216,55020,80020,80025.7% CapitalOutlay14,692-------- OperatingTransfers--------- TOTALEXPENDITURES278,810$212,246$238,736$214,143$236,858$240,292$12.2% 71 ELECTIONS DEPARTMENT:GeneralGovernment SUPERVISOR:DeputyCityClerk FUND#:101 ACTIVITY#:41410 ACTIVITYSCOPE: Theelectionactivityprovidesthepreparationofanyandallelections,includingorganizingthepolling places,electionjudges,andvotetabulations. OBJECTIVES: 1.Continuetoresearchsitesforapossiblesecondpollingprecinct. 2.Prepareforandstaycurrentwithelectionlawchangesforfutureelections. 3.Recruitandtrainjudgestoensurepositivevoterexperiences. ISSUES: 1.Staycurrentonelectionlaws. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 Voters,numberof 0 3,360 0 6,007 0 Registervoters,numberof n/a 6,734 6,184 6,164 7,602 Pollingplaces 1 1 1 1 1 Electionsjudges 0 48 0 50 0 BUDGETCOMMENTARY: Therearenoplannedelectionsfor2013,sothefundsbudgetedareformaintenancecontractsofcity votingmachinesandmiscellaneousexpenses.In2012,therewereelectionsforpresidentandfull slateoffederal,state,andlocaloffices. BUDGET: GENERALFUND200920102011201220122013% ELECTIONSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices88$21,186$103$23,108$23,107$222$-99.0% Supplies-2,072-2,3002,300--100.0% OtherServices&Charges86713,99989715,95015,9502,920-81.7% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES955$37,257$1,000$41,358$41,357$3,142$-92.4% 72 FINANCE DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41520 ACTIVITYSCOPE: TheFinanceDepartmentconductsthefinancialaffairsofthecityofMonticelloinaccordancewith theGovernmentAccountingStandardsBoard(GASB)andGenerallyAcceptedAccountingPrinciples (GAAP).Thisincludesprotectingtheassetsofthecity,theinitiationoffinancialplans,investment anddebtmanagement,reviewandimplementationofinternalcontrols,andaccountingforevery financialtransactionofthecityincludingaccountspayable,accountsreceivable,payroll,and accountingcontrol.Thepreparationoftheannualauditedfinancialreportandannualbudget documentarealsofacilitatedthroughfinance. OBJECTIVES: 1.Continueworkingtodevelopafinancialmanagementplanforthecity. 2.DevelopfinancialdocumentsinaformattobeeligibleforreviewandawardofGFOA’s awardprograms. 3.Providemeaningfulandtimelyfinancialreportsandinformationtocouncil,commissions andothercitydepartments. 4.Completefinancial,payrollandutilitybillingsoftwareconversions. 5.Coordinateacentralpurchasingsystemincludingdevelopingtheuseofpurchaseorders. ISSUES: 1.Completeimplementationofnewsoftwaresystemsforfinancial,payrollandutilitybilling withintegrationofnewprocessesforpurchaseorders,webbasedapplicationsand remotetimecardentry. 2.Implementimprovedreportingprocedurestoinformcouncil,commissions,and departments. 3.Developmethodsforsimplifyingdataanalysisforvariousstakeholders. 4.Workwithotherdepartmentstofindwaystoreducecostsofcityoperations . 5.Constructaworkenvironmentthatprovidesgrowththroughlearning,self-determination throughautonomy,andrelatednessthroughthecreationofenduringworkproducts. 73 MEASURABLEWORKLOADDATA: Measurement20092010201120122013 Outcome/Effectiveness: GFOABudgetAwardYesYesYesYesYes GFOACertificateof AchievementYesYesYesYesYes BondRatingA2Aa3Aa3A2A2 ACHsas%oftotalAPactivity4%4%10%20%23% Efficiency: AP&ACHsperFTE(1.5)2,4952,6893,1492,6152,600 WorkLoad: APchecks,numberof3,5753,8624,2533,1393,000 ACH's167171470784900 W-2s233232264258260 1099's5744494950 Journalentries2,1042,5792,8773,0093,100 BUDGETCOMMENTARY: TheFinancebudgetincludesfundstohandlethefinancialtransactionsofthecity,inanefficient manner,whilemaintainingthehighestlevelofinternalcontrolsandsegregationofduties.The2013 personnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9%health insurancebenefitcostincrease.Additionally,the2013personnelservicesbudgetreflectsthereturn ofafull-timepositiontopart-timestatus.Otherbudgetitemsareexpectedtoremainclosetoprior yearlevels. BUDGET: GENERALFUND200920102011201220122013% FINANCEACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices359,208$338,675$319,357$321,527$321,327$305,325$-5.0% Supplies1,2761,2861,7761,4501,3501,85027.6% OtherServices&Charges33,40136,68956,26626,79732,10031,35017.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES393,885$376,650$377,399$349,774$354,777$338,525$-3.2% 74 AUDIT DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41540 ACTIVITYSCOPE: Anauditofcityfinancesmustbecompletedonanannualbasisforthecitytoremainincompliance withfederalandstateaccountingpractices. OBJECTIVES: 1.Completethefinancialauditinatimelyfashion. 2.Continuetoreducethenumberofauditfindingsandadjustments. ISSUES: 1.Increasingreportingrequirementsandauditingstandards. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Auditsubmittaldate 6/24 6/17 6/29 6/15 6/15 Auditfindings 2 3 0 2 0 GFOAAward Yes Yes Yes Yes Yes BUDGETCOMMENTARY: Thebudgetforauditingconsistsentirelyoftheexpensesassociatedwiththerequiredauditprocess. Inlate2007,aRequestforproposal(RFP)forauditserviceswassenttoseveralfirms.TheRFP guaranteedthecostforauditservicesfortheyearsended2007through2009andresultedinacost decreasefrompreviousyears.Thiscontractwasextendedfor2012fiscalyear.Thefinance departmentplansonpreparingthe2012financialreport. BUDGET: GENERALFUND200920102011201220122013% AUDITACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges41,00037,60042,72029,00042,00040,00037.9% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES41,000$37,600$42,720$29,000$42,000$40,000$37.9% 75 ASSESSING DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41550 ACTIVITYSCOPE: AssessingrequirementsarehandledthroughacontractthecitywiththeWrightCountyassessor. Therearenoplanstoalterthisactivity. OBJECTIVES: 1.Toassessnewandexistingparcelswithinthecityasrequired. ISSUES: 1.Pressureoffairlyappraisingpropertiesundercurrentmarkettrends. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Auditsubmittaldate 6/24 6/17 6/29 6/15 6/15 Auditfindings 2 3 0 2 0 GFOAAward Yes Yes Yes Yes Yes BUDGETCOMMENTARY: AssessingservicesarecontractedwiththeWrightCountyassessor.Theestimatedcostsfor assessmentsarebasedonnumberofexistingandnewparcels. BUDGET: GENERALFUND200920102011201220122013% ASSESSINGACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges50,51849,59849,03250,25049,70051,2151.9% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES50,518$49,598$49,032$50,250$49,700$51,215$1.9% 76 LEGAL DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41601 ACTIVITYSCOPE: Alllegalservicesarecurrentlycontractedwithaprivatelegalfirm.Activitiesincludedarethe issuanceoflegalopinions,preparationofordinances,resolutions,contracts,andagreements,and theconductofcivillitigation.Additionallegalrequirements,suchaspublicationsanddues,are accountedforinthelegalbudget. OBJECTIVES: 1.Continuetorealizesavingsbycontractinglegalservices. ISSUES: 1.Risingcostsassociatedwiththeneedforexistingandnewlegalservices. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: In2010,thecityteamedwithRedWingtohirealobbyisttoseekstatefundsfornuclearstorage emergencyplanningduetotheclosureofYuccaMountainbytheFederalGovernment.Otherwise, thecitycontinuestorealizesavingsfromnothavingfull-timecounsel. BUDGET: GENERALFUND200920102011201220122013% LEGALACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges71,039103,28842,49156,00050,20051,200-8.6% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES71,039$103,288$42,491$56,000$50,200$51,200$-8.6% 77 HUMANRESOURCES DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41801 ACTIVITYSCOPE: HumanResourcesactivitiessupporttheprimarymissionofthecitythroughtheeffective recruitment,selection,development,trainingandassessmentofappropriatehumanresourceneeds. Employeebenefitsandcompensationadministration,implementationof,andcompliancewith FederalandStateemploymentlaws,labornegotiations,processingofemployeegrievances,and developmentofpersonnelpoliciesaremajorhumanresourcefunctions. OBJECTIVES: 1.Providerecruiting,interviewing,andotherpersonnelservicesforallcitydepartments. 2.Administerclassificationandcompensationsystemforallemployeesincompliance withpayequity. 3.Planandcoordinatein-housetrainingprogramsforcitystaff 4.Administercitybenefitplans. ISSUES: 1.Developcitypersonnelhandbook. 2.Developvariouspersonnelpolicies. 3.Developandimplementcitydrugandalcoholtestingprogram. 4.Negotiatenewunioncontractforpublicworksemployees. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Full-timepositions 52 61 61 58 58 Part-timepositions 73 75 80 82 82 Full-timepositionsfilled 7 8 5 2 3 Otherpositionsfilled 50 49 25 59 50 Avg,numberofemployess 125 136 141 140 140 78 BUDGETCOMMENTARY: In2010thehumanresourcepositionwaschangedtoafull-timeposition.The2013budgetreflects estimatedcostsforsettinguptraining,providingcitystaffwithbenefitandcompensation information,andotherexpensesbasedonpastexperience.Thebudgetforconsultanttoprovide trainingtoemployeeswasincreasefor2013.Thepersonnelservicesbudgetincludesafullstep increasewithnocost-of-livingincreaseanda9%healthinsurancebenefitcostincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% HUMANRESOURCESACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices54,777$71,247$64,654$76,677$76,627$77,990$1.7% Supplies-35352800500600-25.0% OtherServices&Charges9,1259,0649,83112,65513,30013,6507.9% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES63,902$80,664$74,537$90,132$90,427$92,240$2.3% 79 PLANNING,ZONING&COMMUNITYDEVELOPMENT DEPARTMENT:GeneralGovernment SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:41910 ACTIVITYSCOPE: TheCommunityDevelopmentandPlanningDepartmentisresponsibleforlong-rangeandcurrent planningeffortsforMonticello.Thedepartmentisresponsibleforregulatingdevelopmentanduse standardsasoutlinedinthezoningandsubdivisionordinance;thesestandardsareaimedat protectingandpromotingpublichealth,safety,andwelfare.Thedepartmentoverseescoordination withregionalplanningandserviceprovidersincludingMonticelloTownshipBoard,WrightCounty Planning&Zoning,SherburneCountyPlanningandZoningandregionaltransitentities.The departmentalsoprovidescitizens,businessowners,anddeveloperswithcurrent,easilyaccessible informationaboutMonticello'splanningprocessandwhat'shappeningintheircommunity. OBJECTIVES: 1.ImplementationofComprehensivePlanobjectives. 2.CompletionofSubdivisionOrdinanceconsistentwiththe“NextSteps”outlinedby theComprehensivePlan. 3.Supportfordowntownredevelopmentandrevitalization,includingtheEmbracing DowntownMonticelloProject. 4.Involvementinregionaltransportationplanninganditsimpactonlanduseand growthobjectives. 5.BertramChainofLakesacquisitionandmasterplanning. 6.Continuedimplementationandtrainingonthecity'sGIS. 7.Continuedimprovementsofthecity'sdevelopmentandplanningprocess. 8.Increasedsupportforneighborhoodorganizationsandinvolvement. ISSUES: 1.Implementationofamendedcityzoningordinance. 2.ConditionalUsepermittrackingandaudits. 3.Reviewcurrentandfuturedevelopmentfinancingpolicies. 80 MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Outcome/Effectiveness: Grantsawarded 4 4 Grantawards $571,820 $571,820 Administrativeapplications processedwithin5workingdays 7 SitePlanreviewsprocessed within10workingdays 4 LandUseapplicationsprocessed within45workingdays 14 Reconciliationsprocessedwithin 60daysofthedecision 20 Efficiency: ApplicationsprocessedperFTE(1)28 27 WorkLoad: PlanningApplications: Variances 2 CUPs77 PUD/AmendmentstoPUD2 InterimUsepermits1 CompPlanamendments Mapamendments23 Non-cityzoningtextamendments2 Plats/adminstrativesubdivisions 2 4 Administrativepermits 5 7 Siteplanreviews 3 5 Vacations 2 1 Totalapplications 28 27 Planningreconciliations 14 Commissionmeetings 12 13 Grantapplications 4 2 BUDGETCOMMENTARY: Theplanning,zoningandcommunitydevelopmentbudgetwasdecreasedin2011toreflectless developmentactivitytakingplace,basedoncurrentactivityandtheeconomyofthearea,state,and nation.Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseand a9%healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremaincloseto prioryearlevels. BUDGET: GENERALFUND200920102011201220122013% PLANNING&ZONINGACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices82,376$85,259$106,428$104,002$104,002$106,328$2.2% Supplies513,4314414004004000.0% OtherServices&Charges62,94020,27667,04965,85070,65061,400-6.8% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES145,367$108,966$173,918$170,252$175,052$168,128$-1.2% 81 INFORMATIONTECHNOLOGY(IT)SERVICES DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41920 ACTIVITYSCOPE: Thisactivitymanagesthedataprocessingandcomputerneedsforallcityfunctions.ITprovidesfor maintenanceofexistingcomputerequipmentandservers,upgradestohardwareandsoftware,and installationofnewcomputerequipmentandsoftware.Inaddition,electronicsurveillance/security, wirelesstechnology,telecommunications,electronicstorageandrecovery,andothertechnology needsarecoveredunderthisarea. OBJECTIVES: 1.Purchase/upgradecomputerhardwareandsoftwaretokeeppacewithcity technologyneedsinaccordancewithreplacementcycle. 2.Maintaincomputersecuritytomeetauditstandardsandrequirements. 3.Respondtoemergencydataprocessingrequestswithin30-60minutesanddevelop actionplantoresolveotherissue,ifnecessary. ISSUES: 1.Continuedevelopmentofamasterinventoryofpersonalcomputers,softwareand peripheralsusedinthecity. 2.DevelopITsystemsdisasterrecoveryplanforthecity. 3.Completeoff-sitebackupsystem. 4.CoordinatemoveofITnetworkandserverstoHeadendBuildingwithassistancefrom FiberNetMonticelloandcity’sITconsultant. 5.IncorporateupgradetoWasteWaterTreatmentFacility’sautomatedsystemcontrolsinto thecity’sCapitalImprovementPlan. 82 MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Outcome/Effectiveness: Networkuptime Numberofclosedrequests Efficiency: Operationhoursvs.reported hoursassignedtorequests Opentoclosedrequestsratio 99%99% WorkLoad: Numberofhelpdeskrequests 326 350 Numberofclients/users 6063 NumberofPC,servers,and networkdevices 95 96 BUDGETCOMMENTARY: Thisactivitypurchasesallcityhardwareandsoftwareequipment,whichisbasedonanannual replacementschedule.In2012,$21,400hasbeenbudgetedforthereplacementandadditionof computerequipmentand$25,650forsoftwareandlicenses.Professionalservicesincludeyear4of5 forSpringbrookfinancial/payroll/utilitybillingsoftwarelicenseagreement,ITsoftwaresystem maintenanceagreements,andtechnicalservicesforatotalof$79,000.Thepersonnelservices budgetincludesafullstepincreasewithnocost-of-livingincreaseanda9%healthinsurancebenefit costincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% ITServicesACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices31,650$26,124$32,580$34,197$34,610$34,704$1.5% Supplies2,9844,7666,1584,0004,0004,0000.0% OtherServices&Charges192,27662,78660,667110,30089,40084,400-23.5% CapitalOutlay12,14912,23517,385-16,00035,405--- OperatingTransfers--------- TOTALEXPENDITURES239,059$105,911$116,790$148,497$144,010$158,509$6.7% 83 CITYHALL DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41940 ACTIVITYSCOPE: Theactivityforthisdepartmentistoallowcityhalltorunsmoothly,byprovidingsupplies,customer service,andstaffingresourcesforthecity. OBJECTIVES: 1.Toprovidefriendly,knowledgeablecustomerservicetothepublic. 2.Provideadequateandconsistenthoursofbusinessthroughouttheyear. 3.Maintainareputablefacilitytohousemeetingsandstaff. 4.Expansionofresourcesforinformationdistribution. ISSUES: 1.Continuingtoimproveinternalandexternalcommunicationsystems 2.ManagementofCitizenServiceDeskwithcontinuedgrowthofinquiriesandneedto improveresponsetimes. 3.Assistancewithphonesystemupgradeandtraining. 4.Maintainingcurrent,accurateinformationforallpublicsources. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Newsletterspublished 3 2 2 2 2 Utilityinsertspublished 2 2 2 2 2 Parkinsertspublished 0 0 4 4 4 Servicedeskdataentry 365 392 476 550 550 BUDGETCOMMENTARY: This Itemsbudgetedforcityhallactivityarecommonlysharedamongalldepartmentsoperatingout ofcityhall,aswellassomesuppliesusedbythecommunitycenter.In2013,otherservicesand chargesdeclinedwiththereductioninpropertytaxesoncity-ownedproperty.Thepersonnel servicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9%healthinsurance benefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. 84 BUDGET: GENERALFUND200920102011201220122013% CITYHALLACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices42,415$83,899$58,459$57,030$56,979$63,506$11.4% Supplies18,24622,03517,24826,32519,67520,000-24.0% OtherServices&Charges168,397163,328148,180170,000173,405150,855-11.3% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES229,058$269,262$223,887$253,355$250,059$234,361$-7.5% 85 PRAIRIECENTERBUILDING DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41941 ACTIVITYSCOPE: Thecity-ownedPrairieCenterBuildingleasesspacetoitsFiberNetoperationsandtoanon-profit group.TheWrightCountySheriff'sDepartmentalsohasspaceinthebuilding.Thisactivityisforthe maintenanceofthisfacility. OBJECTIVES: 1.Toprovideawellmaintainedbuilding. ISSUES: 1.Maintainfacilitywithcurrentstaffandavailablefunds. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: ThePrairieCenterBuildingwaspurchasedin2009toprovideFiberNetMonticellowithbusiness officespace.The2013budgetwasbasedon2012projectedexpenditures.Thebudgetdecreasein otherservicesandchargesreflectsadeclineinpropertytaxes. BUDGET: GENERALFUND200920102011201220122013% PRAIRIECENTERBLDGACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies1,1551,1884171,3001,2001,000-23.1% OtherServices&Charges19,31438,06326,49432,27518,07518,200-43.6% CapitalOutlay596,761-------- OperatingTransfers--------- TOTALEXPENDITURES617,230$39,251$26,911$33,575$19,275$19,200$-42.8% 86 FIRE&RESCUE DEPARTMENT:PublicSafety SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:42202 ACTIVITYSCOPE: TheFireDepartmentrespondstofire,rescue,hazardousmaterials,medical,andaccidentincidentsin withinthecityandinthesurroundingtownships.Thedepartmentalsoprovidesfireinspection services.Paid-on-callvolunteersprovidethedepartment’sstaffing. OBJECTIVES: 1.Assembleaconfinedspaceentryteamwithpersonnelandequipment. 2.DevelopNIMStrainingforallcitydepartments. ISSUES: 1.Improveresponsetimes. 2.DevelopandimplementNIMStrainingforallstaffandcouncil. BUDGETCOMMENTARY: TheFireDepartmentisstaffedwithpaid-on-callvolunteers.Firefightersarepaid$10.00perhourper response.The2013increaseinsuppliesreflectthereclassificationminorfireequipmentpurchasesto smalltoolsandequipment.Otherwise,2013budgetedlineitemsaremuchinlinewith2012 expectedexpenditures. BUDGET: GENERALFUND200920102011201220122013% FIREACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices99,790$111,332$111,705$111,377$116,600$117,732$5.7% Supplies53,01421,26029,73927,65032,75035,65028.9% OtherServices&Charges95,64764,40554,35768,13066,64366,825-1.9% CapitalOutlay527,370--8,0008,0008,0640.8% OperatingTransfers--------- TOTALEXPENDITURES775,821$196,997$195,801$215,157$223,993$228,271$6.1% 87 MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Outcome/Effectiveness: Respondentstofirecalls: City 3,244 2,859 2,270 2,300 MonticelloTownship 1,258 1,066 1,000 1,000 SilverCreekTownship 593 545 278 275 Otsego 90 59 271 0 MutualAid 451 455 803 80 Drills&Maintenance 1,377 1,178 1,859 1,900 Total7,0136,1626,4815,555 Efficiency: Averagerespondentspercall City 17 15 15 15 MonticelloTownship 20 18 19 20 SilverCreekTownship 19 17 15 14 Otsego 13 15 25 --- MutualAid 24 27 37 4 Drills&Maintenance 32 29 37 38 Total 20 18 21 19 WorkLoad: Numberoffirecalls: City 192 187 155 150 MonticelloTownship 63 59 53 50 SilverCreekTownship 32 32 18 20 Otsego 7 4 11 0 MutualAid19172220 Drills&Maintenance 43 41 50 50 Total 356 340 309 290 Firefighters,numberof 30 30 30 30 30 88 FIRERELIEF DEPARTMENT:PublicSafety SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:42202 ACTIVITYSCOPE: Providingaretirementbenefittopaid-on-callvolunteers,thefirereliefactivityisspecifically designedtotrackthecity’scontributiontotheMonticelloFireReliefAssociation. OBJECTIVES: 1.ProvidepensionfundsfortheMonticelloFireReliefAssociation. ISSUES: 1.Tobecomefullyfunded. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Pensionassets(liability)1,010,161$1,136,892$1,066,945$1,149,280$1,150,000$ Firefighters,numberof 30 30 30 30 30 BUDGETCOMMENTARY: Thefirereliefbudgetconsistisbasicallyaconduitfordistributionofstatefireaidtothepensionfund forvolunteerfirefighters.Stateaidrevenueequalsthecontributiontothereliefassociation. BUDGET: GENERALFUND200920102011201220122013% FIRERELIEFACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges80,12766,75872,64767,00070,00070,0004.5% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES80,127$66,758$72,647$67,000$70,000$70,000$4.5% 89 BUILDINGINSPECTIONS DEPARTMENT:PublicSafety SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:42401 ACTIVITYSCOPE: TheBuildingDepartmentinspectsallnewandremodeledconstructionwithinthecitybyastate certifiedbuildinginspector.Thedepartmentinitiatesallbuildingpermitsandoverseesthe enforcementofallpublicnuisanceandordinanceissues. OBJECTIVES: 1.Continueimplementationoftherentallicensingprogram. 2.Continueimplementationofzoningordinancechanges. 3.Continuesignordinanceupdate. 4.Implementyearlycontractor,realtor,andrentalpropertyownerworkshops. 5.Continuepublicrelationscontact.Improvecity'spublicperceptionimage. 6.Continueimplementationofthebuildingcodes. ISSUES: 1.Managingandprioritizingdepartmentworkloads. 2.Facingthechallengesofagrowingregionalcentercityandthepossiblereboundof residentialpropertygrowth. 3.Keepupwithrentallicenseinspectionsofinvestorownedresidentialproperties. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Outcome/Effectiveness: Valueofpermitsissued11,620,271$9,033,078$12,285,873$12,802,549$13,000,000$ ValueofpermitsperFTE(3)3,873,424$3,011,026$4,095,291$4,267,516$4,333,333$ Efficiency: RentalinspectionsperFTE(2)597 600 600 600 600 PermitsperFTE(2)439304316329338 WorkLoad: Buildingpermitsissued878607632657675 Nuisancenoticesissued 351 519 300 250 250 Rentalunits,numberof1,1941,2001,2001,2001,200 90 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9% healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryear levels. BUDGET: GENERALFUND200920102011201220122013% BUILDINGINSPECTIONSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices288,217$233,847$221,442$228,617$230,787$234,746$2.7% Supplies8,1283,5424,1216,6506,7506,7501.5% OtherServices&Charges10,55212,38219,70915,56529,58522,14042.2% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES306,897$249,771$245,272$250,832$267,122$263,636$5.1% 91 CIVILDEFENSE DEPARTMENT:CivilDefense SUPERVISOR:ChiefBuildingOfficial FUND#:101 ACTIVITY#:42501 ACTIVITYSCOPE: Thecivildefensedepartmentprovidesconstantdefensecoverageforallweatherandpowerplant relatedemergencysituationswithinthecity. OBJECTIVES: 1.Implementcityhall,communitycenter,andNationalGuardemergencypreparedness. ISSUES: 1.Littleornowarningwhenanemergencyoccurs. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: The2013budgetisbasedonthe2012budget.Sincetheretirementofthecity'spreviouschief buildingofficial,muchofthisactivity'sresponsibilitieshavebeentransferredtoWrightCounty.The cityisanactiveparticipanttheemergencymanagementteam. BUDGET: GENERALFUND200920102011201220122013% CIVILDEFENSEACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices6,653$1,120$1,541$-$-$-$--- Supplies-2,02523,7491001001000.0% OtherServices&Charges1,2401,9471,5331,3001,6001,82540.4% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES7,893$5,092$26,823$1,400$1,700$1,925$37.5% 92 ANIMALCONTROL DEPARTMENT:AnimalControl SUPERVISOR:ProjectCoordinator FUND#:101 ACTIVITY#:42701 ACTIVITYSCOPE: Thecitycontractswithaprivateindividualforanimalcontrolservices.Thecityownsandmaintains theanimalcontrolfacility.Thecityalsocontractswithnearbycommunities,allowingthemtouseour servicesandfacility. OBJECTIVES: 1.Toaddressissueswithinthecityandsurroundingcommunitiesinatimelyand courteousmanner. 2.Continuetoimproveanimalcontrolresponsetime. 3.Continuetoimprovebillingproceduresforanimalcontrolissues. ISSUES: 1.Toprovidequickresponsetoresidentsonanimalcontrolconcerns. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Thelargestbudgeteditemisforthe$38,250budgetedfortheprofessionalservicecontracttohandle allanimalcontrolissuesforthecityofMonticello.Theremainingbudgeteditemsareformaintaining theanimalcontrolfacilityandmiscellaneousexpensesrelatedtoanimalcontrol. BUDGET: GENERALFUND200920102011201220122013% ANIMALCONTROLACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies1,5581,9012,8762,3002,4752,97529.3% OtherServices&Charges55,53142,66042,95343,96147,01043,360-1.4% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES57,089$44,561$45,829$46,261$49,485$46,335$0.2% 93 NATIONALGUARD DEPARTMENT:NationalGuard SUPERVISOR:ProjectCoordinator FUND#:101 ACTIVITY#:42701 ACTIVITYSCOPE: TheNationalGuardfacilityishousedintheMonticelloCommunityCentercomplex.Thecity maintainsthefacilityfortheGuard. OBJECTIVES: 1.Tomaintainaclean,modernfacilityforusebytheNationalGuard. ISSUES: 1.TherearenocurrentissuestomaintainingtheNationalGuardfacility. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: TheNationalGuardoperatesasecuritydivisionwithintheMonticelloCommunityCentercomplex. ThecitymaintainstheGuard’ssitewithinthecomplex.Thebudgetforthisactivityisrelativelystatic. BUDGET: GENERALFUND200920102011201220122013% NATIONALGUARDACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies2324482113003003000.0% OtherServices&Charges20,40627,01020,45722,75021,95021,950-3.5% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES20,638$27,458$20,668$23,050$22,250$22,250$-3.5% 94 PUBLICWORKS-ADMINISTRATION DEPARTMENT:PublicWorks SUPERVISOR:PublicWorksDirector FUND#:101 ACTIVITY#:43110 ACTIVITYSCOPE: Publicworks(PW)administrationactivityoverseesthedailyoperationsofthestreet,parks,water, sewer,wastewatertreatmentplant,andinspectionactivities.PWadministrationalsomanagesall largecityprojectsandimplementsallchangestoPWoperationsandpolicy. OBJECTIVES: 1.Continuetheimplementationofabio-solidsmanagementsystem. 2.Implementthemajorstreetlightingprojectplan. 3.Continueimplementingthewellheadprotectionplan. 4.Managethedevelopmentofanewpublicworksfacilityandexpansionofthewastewater treatmentplant. 5.Determinelocationforfuturewellsutilizinginformationgatheredfromvarious sourcesincludinggrants. 6.Developaprogramtoleaseantennaspaceonelevatedwatertowers,thusgenerating anewrevenuesource. 7.ImplementanewSCADAsystemasbudgetedinthewaterandsewageoperating funds. ISSUES: 1.Balancethepublicworksdepartmentneedswithavailablefunds. 2.Manageofcity'swastewatertreatmentsystem. 3.Implementacapitalimprovementprogramforcityinfrastructure. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Cityprojectsstarted 10 3 4 10 5 Cityprojectscompleted 12 4 4 5 10 95 BUDGETCOMMENTARY: The2013budgetisverysimilarto2012basedonpastexpenditures.Thepersonnelservicesbudget includesafullstepincreasewithnocost-of-livingincreaseanda9%healthinsurancebenefitcost increase.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% PW-ADMINISTRATIONACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices212,476$214,125$170,955$175,228$176,418$178,845$2.1% Supplies5,2634,4113,0844,3004,6004,200-2.3% OtherServices&Charges17,97617,5987,60042,15041,27541,925-0.5% CapitalOutlay3,109-------- OperatingTransfers--------- TOTALEXPENDITURES238,824$236,134$181,639$221,678$222,293$224,970$1.5% 96 PUBLICWORKS-ENGINEERING DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer FUND#:101 ACTIVITY#:43111 ACTIVITYSCOPE: Engineeringassistswiththeprovision,development,andmanagementofthecity'sstreet,pathways, publicutilitiessystems,geographicinformationsystem(GIS),StormWaterPollutionPrevention Program(SWPPP),improvementprojects,andmiscellaneousmapping.Inaddition,engineering respondstoresidentswithissuesrelatedtostormwaterdrainageand/orpedestrian,bicycle,and vehiculartraffic,andreviews,updatesandsupportsthecity'sGeneralSpecificationsandStandard DetailPlatesforStreetandUtilityConstructionandourPlanRequirementsandDesignGuidelines. Engineeringalsoissuesdriveway,grading,andright-of-waypermits. OBJECTIVES: 1.ImproveabilitytoassistotherdepartmentswithCADDandGISrelatedrequests. 2.Continuetoadministerandmaintainthecity'sSWPPP. 3.Continuetoimplementandimprovethecity'sGIS. 4.Continuetoeducatethepubliconpurposesandpracticesassociatedwithconservation anddrainageeasementsandstormwaterponds. 5.Createaone-stopshopforcitydriveway,gradingandright-of-waypermits. 6.Continuetodevelopanin-housePavementManagementProgram. ISSUES: 1.IncreasingrestrictionsbyMinnesotaPollutionControlAgency(MPCA)forstormwater runoff. 2.Lackofpublicknowledgeregardingpurposesandpracticesassociatedwithconservation anddrainageeasementsandstormwaterponds. 3.IncreasingphosphorusrestrictionsbyMPCAforwastewatereffluent. 4.Reductioninavailablefederalandstatefundingfortransportationimprovements. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Servicerequests 60 75 85 100 85 On-lineservicerequests 60 85 70 100 85 Activeimprovementprojects 7 7 8 10 10 Drivewaypermitsissued 8 3 6 Right-of-waypermitsissued 192 92 74 127 100 Gradingpermitsissued 2 2 2 10 8 97 BUDGETCOMMENTARY: Theengineeringactivitypredominantlyconsistsofengineeringandotherprofessionalservicefees. Theseexpendituresconsistofbothreimbursableandnon-reimbursableexpenditures.For2013,the engineeringbudgetwillremainaboutthesameas2012becauseoftheprojectedlackofnew residentialdevelopment.Fundsarebudgetedforcontinuedimprovementsanddevelopmentofthe city'sGISsystem.Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-living increaseanda9%healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremain closetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% PW-ENGINEERINGACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices133,455$157,527$134,793$151,112$152,221$152,361$0.8% Supplies2,6741,77058250350150-40.0% OtherServices&Charges109,1038,79885,22765,37568,87560,925-6.8% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES245,232$168,095$220,078$216,737$221,446$213,436$-1.5% 98 PUBLICWORKS-INSPECTIONS DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer FUND#:101 ACTIVITY#:43115 ACTIVITYSCOPE: Thepublicworksinspectionactivityisresponsibletodesignandinspectcityinfrastructureprojects, andtoreviewandapproveright-of-wayexcavation/obstructionpermitapplications.Personnelare alsoresponsibleforrecordingas-built,designandmappingassistance,andadministering,managing andusingvariouscomputersoftwareprogramsincludingAreGIS,AutoCADmandCarteGraph. OBJECTIVES: 1.Maintain,improve,andtrainstaffonusingthecity'sGISsystemtoalloweveryoneto useittoitsfullestpotential. 2.Maintaincertificationsandattendappropriateclassesandworkshops. 3.Providesupportfortheengineeringactivity. 4.Improvecommunicationbetweenpublicworks,engineeringandinspectionactivities. 5.Improveknowledge,skills,andabilityinusingCarteGraphsoftwarefordevelopment ofanin-housePavementManagementProgram. 6.Improveknowledge,skills,andabilityinusingAutoCADSoftwareforassistingother departmentswiththeirdraftingandmappingneeds. 7.Assistothercitydepartmentsinacquiringutilityinformationnotreadilyavailable fromothersources,includingGIS. 8.Assistwithdesignandimplementationofsolutionstodrainageissues. ISSUES: 1.Accesstocityvehicleshousedincoldstorageatpublicworksisdifficult,limitingability toquicklyrespondtoissues. 2.WorkloadandbudgetissuescreatedbymandatoryMPCAcompliance requirementsinrelationtocitySWPPP. 99 MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Projectinspectionshours 1,100 1,200 1,200 1,400 1,400 Projectpre-designhours 35 80 80 800 800 Snow&Iceremoval 12 20 8 10 10 Projectfile/planscanning n/a 30 150 200 200 Excavationpermitapps 30 38 40 50 50 Designreview/updates n/a 20 30 40 40 Mapplottings 123 300 84 100 100 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9% healthinsurancebenefitcostincrease.Otherserviceandchargeshasanexpectedincreasefor internalequipmentrental.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% PW-INSPECTIONSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices110,496$86,395$37,653$104,875$105,782$105,202$0.3% Supplies2,4662,7443,0765,6004,5007,35031.3% OtherServices&Charges6,3132,8475,0206,3815,85012,74099.7% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES119,275$91,986$45,749$116,856$116,132$125,292$7.2% 100 PUBLICWORKS–STREETS&ALLEYS DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43120 ACTIVITYSCOPE: Theforemostresponsibilityofthestreetsandalleysactivityistoperformthenecessarytasksto reducethedepreciationofthecitystreetsandupholdthedesirablestandardsofappearance, serviceability,andsafety.Thisincludesupkeepsuchasstreetsweeping,repairofroadwaysurface areas,medians,sidewalks,boulevards,alleys,catchbasins,andstormsewers. OBJECTIVES: 1.Continuestreetreconstructionofolderroadsurfacesbyevaluatingroadwear. 2.Increasestreetchipsealcoatingprojects. 3.Maintainandupdateequipmentandvehicles. 4.HelpmaintainanduseCityGISsystem. 5.Continuestreetcracksealingprogram. ISSUES: 1.Educatethepubliconwhattheboulevardsaretobeusedfor. 2.Educatingthepubliconstormwateroperations. 3.Increasedcostsoffuelandstreetproductsduetofuelcosts. 4.Educatethepubliconthevalueofgoodmaintenanceprogramsforour infrastructure. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Poundsofcracksealer 24,160 20,000 15,000 23,100 20,000 Sq.yardsofchipsealing 58,000 75,000 60,000 78,500 75,000 Milesofstreets 68.0 68.0 68.0 68.0 68.0 Tonsofblacktoppatching 200 200 200 193 200 101 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9% healthinsurancebenefitcostincrease.Otherserviceandchargeshasanexpectedincreasefor internalequipmentrentalpurchasedthroughanotherfund.Otherbudgetitemsareexpectedto remainclosetoprioryearlevels. BUDGET: GENERALFUND200920102011201220122013% PW-STREETS&ALLEYSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices369,526$368,342$376,192$415,597$423,181$421,439$1.4% Supplies117,009126,089145,336147,275136,865147,9750.5% OtherServices&Charges112,01984,28578,631119,027123,750124,2504.4% CapitalOutlay180,094-15,67718,15018,15031,93576.0% OperatingTransfers--------- TOTALEXPENDITURES778,648$578,716$615,836$700,049$701,946$725,599$3.6% 102 PUBLICWORKS–ICE&SNOWREMOVAL DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43125 ACTIVITYSCOPE: Thecity'siceandsnowremovalactivityisresponsibleforthecontroloficeandsnowoncitystreets, sidewalksandcity-ownedpublicparkinglots.Theactivityprovidescontrolinasafeandcosteffective manner,keepinginmindsafety,budget,personnel,andenvironmentalconcerns. OBJECTIVES: 1.Continuetomaintainandupdateequipmentandvehiclesinatimelymanner. 2.LearnwaystoeffectivelyusetheCity'sGISsystem. ISSUES: 1.Staffingandbudgetingforunpredictablecircumstances. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Inchesofsnow 50 50 75 29 51 Plowingevents,numberof 20 20 30 7 19 Tonsofsaltused 475 400 450 325 413 Tonsofsandused 800 600 600 370 593 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9% healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryear levels. 103 BUDGET: GENERALFUND200920102011201220122013% PW-ICE&SNOWACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices116,200$124,885$103,638$134,080$135,629$132,215$-1.4% Supplies53,55163,95369,68684,50084,00085,0000.6% OtherServices&Charges9432815182,3002,3002,3000.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES170,694$189,119$173,842$220,880$221,929$219,515$-0.6% 104 PUBLICWORKS–SHOP&GARAGE DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43127 ACTIVITYSCOPE: Shop&Garagemaintainsallcityvehiclesandequipmentforthestreets,ice&snow,parks,waterand Sewageactivitiesinasafeandefficientmanner. OBJECTIVES: 1.Maintainequipmentandvehiclestomaximizeefficienciesandsafety. 2.Updateequipmentandvehicles. ISSUES: 1.Agingequipment. 2.Increasedsafetyregulationforequipmentandvehicles. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9% healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryear levels. BUDGET: GENERALFUND200920102011201220122013% PW/-SHOP&GARAGEACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices87,007$96,443$104,360$79,160$81,573$88,919$12.3% Supplies43,96427,56140,75840,55034,91539,000-3.8% OtherServices&Charges45,80256,04740,07350,30072,95055,85011.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES176,773$180,051$185,191$170,010$189,438$183,769$8.1% 105 PUBLICWORKS–STORMWATER DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer FUND#:101 ACTIVITY#:43130 ACTIVITYSCOPE: Stormwaterisresponsibleforexpendituresrelatedtothemaintenanceofthecity'sstormwatersystem. Thisactivityincludesinspecting,cleaningandrepairingallstormwatertrunklines,ditches,andponds. OBJECTIVES: 1.Monitor,repair,andcleanstormwatertrunklines,laterals,structures,ditches,holding pondsandstructuralpollutioncontroldevices. ISSUES: 1.Continueddeteriorationofstormwatersystem,withoutproperfundingforrepairs, replacementorimprovements. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Stormwatermainmiles 1/4city 1/4city 1/4city 1/4city 1/4city Cleanseptormanholes 4 4 4 4 4 GPSstormstructures 1/4city 1/4city 1/4city 1/4city 1/4city Stormwatermanhole maintenance 1/4city 1/4city 1/4city 1/4city 1/4city Stormwatermainlocates 100 100 100 100 100 BUDGETCOMMENTARY: The2013budgetforthestormwateractivityisforgeneralmaintenanceofthecity'sstormwater system.ThecleaningandrestorationofholdingpondswillbepaidfromtheStormWaterAccess Fundin2013.Thepersonnelservicesbudgetincludesafullstepincreasewithnocost-of-living increaseanda9%healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremain closetoprioryearlevels. 106 BUDGET: GENERALFUND200920102011201220122013% PW-STORMWATERACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices16,635$13,079$12,705$17,088$18,038$21,558$26.2% Supplies-2,0732,1154,0002,0005,00025.0% OtherServices&Charges13,9131,0421,7336,65012,6504,650-30.1% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES30,548$16,194$16,553$27,738$32,688$31,208$12.5% 107 PUBLICWORKS–PARKINGLOTS DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43140 ACTIVITYSCOPE: Parkinglotsactivityisresponsibleforreducingthedepreciationofthecity-ownedparkinglots.This includespatching,striping,repairing,andresurfacingasneeded. OBJECTIVES: 1.Monitorparkinglotsandpatchandstripeasneeded. 2.Continueaddingminorplantingstoparkinglots. ISSUES: 1.Continueddeteriorationofparkinglotswithoutproperfundingforreplacementorrepairs andmaintenance. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 City-ownedparkinglots 5 5 5 5 5 BUDGETCOMMENTARY: Theparkinglotsbudgetissimilartoprioryearsexceptforareductionincapitaloutlay. BUDGET: GENERALFUND200920102011201220122013% PW-PARKINGLOTSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices217$868$826$804$1,654$1,701$111.5% Supplies107502843,0003,0003,0000.0% OtherServices&Charges3,3064,27610,6384,6005,6504,6000.0% CapitalOutlay---6,000---100.0% OperatingTransfers--------- TOTALEXPENDITURES3,630$5,194$11,748$14,404$10,304$9,301$-35.4% 108 PUBLICWORKS–STREETLIGHTING DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43160 ACTIVITYSCOPE: StreetIightingmaintainsthenewandexistingstreetlightingwithinthecity.Thisincludesmaintainingthe bulbsandfixturesoncetheyhavebeeninstalled,aswellastheelectricityusedforthelighting. OBJECTIVES: 1.WorkwithMNDOTtoaddbatteryback-uptosignalsonTH25. 2.Draftanewstreetlightingpolicy. ISSUES: 1.Increasingelectricitycosts. 2.Verifylampandfixturesmaintenancebyutilitycompanies. 3.Needmaintenanceandupgradesonseveralsignalsystemsandthelackof assistanceformWrightCounty,MNDOTandconsultingengineer. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Streetlightsmaintained 94 100 126 150 150 Streetscapelights 40 50 50 50 60 BUDGETCOMMENTARY: Electricitycostsforthestreetlightsarethelargestexpenditureat$160,000.Theremainingfundsare forrepairandmaintenanceorsupplies. BUDGET: GENERALFUND200920102011201220122013% PW-STREETLIGHTINGACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies17,93113,2871,27112,00010,00010,000-16.7% OtherServices&Charges184,841185,606204,715185,600192,500206,50011.3% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES202,772$198,893$205,986$197,600$202,500$216,500$9.6% 109 PUBLICWORKS–REFUSECOLLECTION DEPARTMENT:PublicWorks SUPERVISOR:RefuseCollection FUND#:101 ACTIVITY#:43230 ACTIVITYSCOPE: Thecitycontractswithaprivatecompanyforresidentialrefusecollectionandrecyclingservices. OBJECTIVES: 1.Researchexpandingcityhaulerscontractedservicepricestobusinessanddeterminethe percentageofparticipationtoachieveadesirablerate. ISSUES: 1.Wearandtearoncitystreets. 2.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Thecity'srefusehaulertookovertherecyclingandgarbagecartmaintenanceandreplacementin 2010,resultinginalowerbudgetforpersonnelservicesandsupplies.Thebalanceofthe expendituresisbasedonthecontractthecityhaswithitsrefusehauler. BUDGET: GENERALFUND200920102011201220122013% REFUSECOLLECTIONACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices14,029$1,760$-$1,724$1,034$1,034$-40.0% Supplies3,0382,822-1,1001,1001,1000.0% OtherServices&Charges530,093530,321495,693541,350509,276515,426-4.8% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES547,160$534,903$495,693$544,174$511,410$517,560$-4.9% 110 COMMUNITYCELEBRATIONS DEPARTMENT:RecreationandCulture SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:45130 ACTIVITYSCOPE: Thecommunitycelebrationsactivitycoordinatesandparticipatesincitycelebrations,sharingtheholiday spiritthroughoutthecommunity. OBJECTIVES: 1.VaryactivitiesandincreasetheparticipationofWalk'n'Roll. 2.ExpandoncitypresenceandinformationatWalk'n'Roll. 3.Maintainholidaydecorationsthroughoutthecity. 4.ResearchinvolvementinswanfeedingandSwanParkactivitiesinconjunctionwiththe chamberofcommerce. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Walk&Rollparticipants 500 500 700 750 750 Businessbooths,numberof 75 55 60 70 70 BUDGETCOMMENTARY: ThecommunitycelebrationsbudgetincludesexpendituresforWalk'n'Roll,theRiverfestBlockParty, andtomaintainholidaydecorations. BUDGET: GENERALFUND200920102011201220122013% CELEBRATIONSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies000000--- OtherServices&Charges2,0721,359392,4503,3153,30034.7% CapitalOutlay000000--- OperatingTransfers000000--- TOTALEXPENDITURES2,072$1,359$39$2,450$3,315$3,300$34.7% 111 SENIORCENTER DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45175 ACTIVITYSCOPE: TheseniorcenterfacilityishousedintheMonticelloCommunityCentercomplex.Thefacilityis maintainedbycity. OBJECTIVES: 1.Tomaintainaclean,modernfacilityforusebyMonticello’sseniorcitizens. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Outcomes/Effectiveness Volunteershours 7,386 7,176 7,511 8,058 8,200 Dinnersserved 7,375 6,108 5,923 5,347 5,000 Efficiency: Duplicatedparticipants peractivity 20 20 19 19 20 Unduplicatedparticipants peractivity 161 160 161 166 168 WorkLoad: Unduplicatedparticipants 2,055 2,089 2,102 2,123 2,150 Duplicatedparticipants 16,558 16,843 17,334 18,266 18,500 Receivedphonecalls 4,872 4,831 4,790 4,727 4,700 Activitiesoffered 103 105 108 110 110 BUDGETCOMMENTARY: Theseniorcenterrentsspacewithinthecommunitycentercomplex.Thecitymaintainsandinsures theseniorcenter.Inaddition,thecitygivesanannualcontributiontotheseniorcenter,whichis budgetedat$51,500for2013. 112 BUDGET: GENERALFUND200920102011201220122013% SENIORCENTERACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices171$428$-$546$545$545$-0.1% Supplies000000--- OtherServices&Charges93,19672,70893,17189,47589,47590,4751.1% CapitalOutlay000000--- OperatingTransfers000000--- TOTALEXPENDITURES93,367$73,136$93,171$90,021$90,020$91,020$1.1% 113 COMMUNITYEDUCATION DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45176 ACTIVITYSCOPE: Forseveralyears,thecitycontributedtothecommunityeducationprogramintheMonticelloschool district.Thisannualcontributionwasgiventohelpsubsidizesummerrecreationalactivities,suchaslittle leagueandT-ball. OBJECTIVES: 1.Continuetosubsidizethecommunityeducationprogramwithanannualcontribution. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Notapplicable BUDGETCOMMENTARY: Thecityessentiallyendedfundingforcommunityeducationprogramsin2010.However,itdoes providenon-financialsupport(i.e.parks,etc.). BUDGET: GENERALFUND200920102011201220122013% COMMUNITYEDUCATIONACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges12,740-495------ CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES12,740$-$495$-$-$-$--- 114 TRANSIT DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45178 ACTIVITYSCOPE: Dial-a-ridebusservice,providedbycontractthroughRiverRiderBusCompany,istheonlytransitactivity subsidizedbythecity. OBJECTIVES: 1.TocontinuesubsidizingtheRiverRidertransportation. 2.Evaluateserviceenhancementswithinthecontextofothertransportationoptions, includingtheNorthstarcommuterrailsystem. 3.ReviewinvolvementinstudyforI-94commuterserviceoptions. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Adultrides 2,534 1,804 1,984 2,000 2,000 60+rides 2,738 2,350 2,720 3,000 3,000 Disable/wheelchairrides237253146250250 Studentrides 1,392 1,361 1,768 2,000 2,000 BUDGETCOMMENTARY: Thecity’s$3,0002013contributionwillhelppurchaseanewbusfortheMonticelloroute. BUDGET: GENERALFUND200920102011201220122013% TRANSIT-RIVERRIDERACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PERSONNELSERVICES-$-$-$-$-$-$--- SUPPLIES000000--- OTHERSERVICES&CHARGES 0003,0003,0003,0000.0% CAPITALOUTLAY000000--- OPERATINGTRANSFERS000000--- TOTALEXPENDITURES-$-$-$3,000$3,000$3,000$0.0% 115 ICEARENA DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45198 ACTIVITYSCOPE: In2004,thecityagreedtoatenyearcontributioncommitmenttotheMonticelloCommunityIceArena. Thelastyearofthe$75,000annualcontributionis2013. OBJECTIVES: 1.Continuetomeetthe$75,000annualcontributioncommitment. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Thecityhascommitted$75,000peryearfortenyears,beginningin2004andendingin2013. BUDGET: GENERALFUND200920102011201220122013% COMMUNITYICEARENAACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges75,00075,00075,00075,00075,00075,0000.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES75,000$75,000$75,000$75,000$75,000$75,000$0.0% 116 PARKOPERATIONS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45201 ACTIVITYSCOPE: Theparkoperationsactivitymaintainstheparksandtrailswithinthecity.Thisincludesmaintainingand improvingplaygroundandpicnicfacilities,fertilizingandmowingofgrass,maintainingathleticfields, floodingandmaintenanceofoutdooricerinks,snowandiceremoval,andtreepreservationwithinthe parkssystem. OBJECTIVES: 1.Continuepathwaysmaintenance. 2.Usethecity’sGIStoimproveefficiencies. 3.ContinueimplementingplanforaregionalparkoncurrentYMCAland. ISSUES: 1.Maintenanceconcernsnotallowingforcompletionofexistingbudgets. 2.Budgetconstraintsforfutureandexistingprojects. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Parklandacresmaintained 180 180 180 180 180 Trailmilesmaintained 16.5 16.5 16.5 16.5 16.5 Parkeventsheld 130 130 130 150 150 Winterskatingdays 100 120 90 125 125 BUDGETCOMMENTARY: Theparksbudgetconsistsofexpensesneededtomaintaincityparksandtrails.The2013budgetis consistentwiththe2012budgetandpastexpenditurelevelsexceptforanincreaseinbudgetfor landscapematerialsandparksupplies.In2013,capitaloutlayfortrailshasbeenmovedtotheParks andPathwaysDedicationFund.The2013personnelservicesbudgetincludesafullstepincreasewith nocost-of-livingincreaseanda9%healthinsurancebenefitcostincrease. 117 BUDGET: GENERALFUND200920102011201220122013% PARK-OPERATIONSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices344,255$331,320$359,055$373,632$390,880$398,271$6.6% Supplies78,17469,633145,411109,675109,475111,7751.9% OtherServices&Charges88,99050,24854,69075,46281,06281,5758.1% CapitalOutlay23,593--53,00053,00014,155-73.3% OperatingTransfers100,000-------- TOTALEXPENDITURES635,012$451,201$559,156$611,769$634,417$605,776$-1.0% 118 PARKIMPROVEMENTS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45202 ACTIVITYSCOPE: Parkimprovementsdivisionmaintainstheparksandtrailswithinthecity.Thisincludesmaintainingand improvingplaygroundandpicnicfacilities,fertilizingandmowingofgrass,maintainingathleticfields, floodingandmaintenanceofoutdooricerinks,snowandiceremoval,andtreepreservationwithinthe parkssystem. OBJECTIVES: 1.RestoreorreplacecemeterygravestonesatHillsideCemetery. ISSUES: 1.Maintenanceconcernsnotallowingforcompletionofexistingbudgets. 2.Budgetconstraintsforfutureandexistingprojects. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Overtime,mostoftheexpendituresforparkimprovementshavebeenabsorbedinotherbudgets. BUDGET: GENERALFUND200920102011201220122013% PARK-IMPROVEMENTSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies12,449-------- OtherServices&Charges9,5313,3981,922------ CapitalOutlay4,278--8,500---100.0% OperatingTransfers50,000-78,383------ TOTALEXPENDITURES76,258$3,398$80,305$8,500$-$-$-100.0% 119 PARKBALLFIELDS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45203 ACTIVITYSCOPE: Theparkballfieldsactivitypreparesandmaintainscityathleticfields,includingtheNSPBallfield. OBJECTIVES: 1.Prepareandmaintaincityathleticfields. 2.Improvethestructuresattheballfields. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Ballgamesplayed,numberof 550 550 580 600 600 BUDGETCOMMENTARY: The2013budgetreflectpastexpenditurelevelsandissimilartothe2012budgetformaintainingthe fieldsandconcessionactivitiesplusincreasesforincreasedparkactivity.Thecapitaloutlay expendituresareforlightingimprovementstotheballfieldsandtheadditionofdugoutroofs. BUDGET: GENERALFUND200920102011201220122013% PARK-BALLFIELDSACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies12,4905,4918,30214,85014,85014,8500.0% OtherServices&Charges17,0248,69710,24411,95011,95011,9500.0% CapitalOutlay---15,50015,50015,5000.0% OperatingTransfers--------- TOTALEXPENDITURES29,514$14,188$18,546$42,300$42,300$42,300$0.0% 120 SHADETREE DEPARTMENT:RecreationandCulture SUPERVISOR:ParkSuperintendent FUND#:101 ACTIVITY#:46102 ACTIVITYSCOPE: ShadeTreesupportsplantingandmaintainingtreesandshrubberywithinthecitylimits.Thisactivity providesforregulating,developing,planting,maintaining,andremovingoftreesinanystreet,park,right- of-wayorotherpublicplace.Shadetreesaidthelargergoalofsoilconservation,climatemoderation,air quality,noise,etc.Thebudgetprovidesthemechanismsforfundingauniformprogramforthepurpose ofbeautifyingthecommunityasawhole,andincreasingpropertyvalues. OBJECTIVES: 1.Providetreesforspringtreeplanting. 2.ContinuewithShadeTreeDiseaseControlProgram. 3.ReplacedeadanddiseasedtreesthroughouttheCityandParks. 4.Continuechippingprogram. 5.Continueeducationprogram. 6.Beginaboulevardtreeplantingprogram. ISSUES: 1.Stressontreescausedbyweatheranddiseases. 2.Fundingavailability. 3.Chipperreplacement. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Treesplanted 425 425 265 450 450 Treesremoved 200 200 225 200 200 Studentsinprograms 375 375 400 425 425 121 BUDGETCOMMENTARY: Aportionoftheparkemployee'stimeisallocatedtotheShadeTreeSub-Fund.The2012and2013 budgetsreflecthavingalargerbudgetfortreereplacementsprogram.The2013personnelservices budgetincludesafullstepincreasewithnocost-of-livingincreaseanda9%healthinsurancebenefit costincrease. BUDGET: GENERALFUND200920102011201220122013% SHADETREEACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices12,971$27,189$36,646$26,337$26,337$32,542$23.6% Supplies5,6919222,0322,3252,3252,4505.4% OtherServices&Charges4,3216,3495,80112,80012,80012,8000.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES22,983$34,460$44,479$41,462$41,462$47,792$15.3% 122 LIBRARY DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45501 ACTIVITYSCOPE: LibraryservicesarecontractedthroughtheGreatRiverRegionalLibrarySystem.Thecityownsand maintainsthelibrarybuildingandprovidesprogramsthroughthelibrarytoresidents. OBJECTIVES: 1.Provideresidentswithlife-longlearningopportunities. 2.Provideaccesstoglobalinformationresources. 3.Providequalityprogramstoallages. ISSUES: 1.Keepinginformationstockedasneeded. 2.Budgetconstraintsoftheregionallibrarysystemandthecity. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Checkedoutitems 219,694 248,327 250,000 260,000 260,000 Programsoffered 155 170 164 175 200 Programparticipantsenrolled 3,869 4,100 4,536 4,600 4,700 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloLibrary.ThecitycontractswithGreatRiverRegionalLibrary Systemforallinformationsourcesandoperations.Thecityownsandmaintainsthebuildingthe libraryishousedinandfundssomeyouthprograms.The2012budgetissimilartothe2011budget andpastexpenditures. 123 BUDGET: GENERALFUND200920102011201220122013% LIBRARYACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices10,764$7,910$6,944$10,642$10,642$9,692$-8.9% Supplies2,3545,1391,5621,7001,7001,90011.8% OtherServices&Charges29,44624,52927,78126,04326,04328,5059.5% CapitalOutlay101-------- OperatingTransfers--------- TOTALEXPENDITURES42,665$37,578$36,287$38,385$38,385$40,097$4.5% 124 ORDERLYANNEXATIONAREA DEPARTMENT:Other SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:46401 ACTIVITYSCOPE: TheOrderlyAnnexationArea(OAA)isdesignedtofundannexationtransactionforthecity. OBJECTIVES: 1.Providesmoothtransitionofpropertiesintothecitywhenannexationoccurs. ISSUES: 1.Sloweconomy. 2.TrafficcongestiononTH25 MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Aportionoftheparkemployee'stimeisallocatedtotheShadeTreeSub-Fund.The2012and2013 budgetsreflecthavingalargerbudgetfortreereplacementsprogram.The2013personnelservices budgetincludesafullstepincreasewithnocost-of-livingincreaseanda9%healthinsurancebenefit costincrease. BUDGET: GENERALFUND200920102011201220122013% OAAACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges1,043717-8308308300.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES1,043$717$-$830$830$830$0.0% 125 ECONOMICDEVELOPMENT DEPARTMENT:Other SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:46501 ACTIVITYSCOPE: GeneralFundeconomicdevelopmentactivitycreatesandmaintainsaclearfocusonobjectives,which fostersapro-businessenvironment.Inaddition,networkingwithorganizationsandindividualstocreate good-willandpromotethecityofMonticelloasaplacetoworkandlive. OBJECTIVES: 1.Encourageretentionandexpansionofexistingbusinesses. 2.Exploreeducationandtrainingcourseprogramswithexistingbusinessesand surroundingeducationalfacilities,whichwillhelpfacilitateopportunitiesforMonticello toprovidejobs,withincreasingopportunitiesforpeopletoworkandliveinMonticello. 3.Exploreopportunitiestoattractcorporateheadquarters,campuses,and businesses. 4.Workwiththedowntownstakeholdersandcityofficialstoimplementthe EmbracingDowntownPlan. 5.Developa"Branding"imagebasedonthevisionofthecity's ComprehensivePlanandoutcomeoftheEmbracingDowntownPlan. 6.Analyzecitycompetivenesswithsurroundingcitiesbasedonfees,taxes,and developmentstandards. 7.Continuetoimplementabusinessretentionandexpansionprogram. 8.EngageintheGreaterMSPOrganization. 9.Continuetoexploreoptiontocreateasecondindustrialpark. 10.Developmonitoringprocesstodeterminesuccessofvariousprograms. 11.EnhanceIndustryofYearevent/manufacturingmonth. ISSUES: 1.Consistentadministrationofcitypolicies,plans,ordinances,guidelines,statutes,etc. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable 126 BUDGETCOMMENTARY: In2013,theGeneralFundcontributiontoeconomicdevelopmentwillbeintheformofanoperating transfer.Futureoperatingtransferswillbereportedasaseparateactivityregardlessofpurpose.The 2013operatingtransferforeconomicdevelopmentis$80,000. BUDGET: GENERALFUND200920102011201220122013% ECONOMICDEVELOPMENT ACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices67,157$49,066$61,700$66,100$45,500$-$-100.0% Supplies10150260------ OtherServices&Charges11,31611,13987,04815,00015,000--100.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES78,574$60,255$149,008$81,100$60,500$-$-100.0% 127 INSURANCE DEPARTMENT:Other SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:49240 ACTIVITYSCOPE: ThisactivityaccountsforavarietyofundistributedGeneralFundinsurancescosts. OBJECTIVES: 1.Toaccuratelydistributeinsurancecoststoallactivitiesbyfund. ISSUES: 1.Purchasingtheproperlevelofinsurancecoveragewiththeappropriatedeductiblesatthe lowestpossiblecosts. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: In2013,otherservicesandchargesincreasedsignificantlyfromtheredistributionofsomeinsurance coststotheGeneralFund.Aneffectivesafetyprogramadministeredbythehumanresource managerhasresultedinadeclineofworkerscompensationinsurancecosts.Additionally,liability insurancedecreasedslightlyandpropertyinsuranceincreasedslightly. BUDGET: GENERALFUND200920102011201220122013% INSURANCEACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices47,023$83,015$71,972$20,011$25,000$25,000$24.9% Supplies--------- OtherServices&Charges143,431148,630178,01560,43239,26072,26019.6% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES190,454$231,645$249,987$80,443$64,260$97,260$20.9% 128 SPECIALREVENUEFUNDS-SUMMARY DESCRIPTION Thecitycurrentlyhasfiveactivespecialrevenuefunds.Specialrevenuefundsareusedtoaccountforthe proceedsofspecificrevenuesourcesthatarerestrictedorcommittedtoexpendituresforspecificpurposes otherthandebtserviceorcapitalprojects.UnliketheGeneralFund,thebudgetsofspecialrevenuefundsdo notalwaysbalance--revenuesequalexpenditures.Specialrevenuefundsusethemodifiedaccrualbasisof accountingforbothfinancialreportingandbudgetingpurposes. BUDGETISSUES Eachspecialrevenuefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY SPECIALREVENUEFUNDS200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes1,260,940$1,049,658$1,048,883$1,150,000$1,150,000$1,170,000$1.7% TaxIncrements1,202,2401,165,2031,050,563881,630945,725681,240-22.7% Licenses&Permits--------- IntergovernmentalRevenues260,98171,092538,487-325,000---- ChargesforServices1,408,0521,428,3981,559,6741,575,6251,551,1301,662,7505.5% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous365,636410,482611,403230,355230,770157,600-31.6% OperatingTransfers2,801,776505,301-1,100,0001,423,833780,000-29.1% DebtProceeds--------- TOTALREVENUES7,299,625$4,630,134$4,809,010$4,937,610$5,626,458$4,451,590$-9.8% EXPENDITURES PersonnelServices1,154,116$1,164,826$1,213,658$1,189,254$1,194,254$1,360,036$14.4% Supplies200,141190,356218,878235,900235,900242,0502.6% OtherServices&Charges504,774613,904912,948599,291686,343466,111-22.2% CapitalOutlay1,386,606884,5871,670,2272,623,8693,578,0311,017,465-61.2% OperatingTransfers1,063,7121,488,4881,228,7791,235,5841,914,2641,649,40333.5% TOTALEXPENDITURES4,309,349$4,342,161$5,244,490$5,883,898$7,608,792$4,735,065$-19.5% FUNDBALANCE-JANUARY16,745,094$9,735,370$10,023,343$9,587,863$9,587,863$7,605,529$ Excess(Deficiency)of RevenuesoverExpenditures2,990,276287,973(435,480)(946,288)(1,982,334)(283,475) FUNDBALANCE-DECEMBER319,735,370$10,023,343$9,587,863$8,641,575$7,605,529$7,322,054$ 129 ECONOMICDEVELOPMENTFUND DEPARTMENT:EconomicDevelopment SUPERVISOR:CommunityDevelopmentDirector FUND#:212 ACTIVITY#:46301 ACTIVITYSCOPE: TheMonticelloEconomicDevelopmentAuthority(EDA)isresponsiblefortheon-going redevelopmenteffortswithinthecity.Thisconsistsofhousingandbusinesses,includingallrelated publicimprovementsandlandacquisitions.Theseprogramsareadministered,basedondirectionof theEDAcommittee,andbytheDirectorofEconomicDevelopment.Inaddition,alltaxincrement financingdistrictsareinitiatedandadministeredbytheEDA.Therearecurrently14activetax incrementdistricts.TheEDAalsoadministersloanstocitybusinesses,basedonlocal,state,and federalrequirements.Theseloansaredoneonthepremisethatthebusinesswillgeneratehigher payingjobsinthecommunity. OBJECTIVES: 1.Exploremedicalmanufacturing,foodrelated,anddatacenterfacilitiesforMonticello. 2.Promotecity'sfiberopticsnetworktoattractandretainbusinesses. 3.Implementshort,intermediate,andlong-termobjectivesoutlinedintheTIFAnalysisand ManagementPlan. 4.ImplementEmbracingDowntownPlan. 5.Continuetopurchaselandthatmakessenseforredevelopmentpurposes. 6.ContinuetomarkettheMonticellobusinesscenter. 7.Implementtraining/educationprogramforexistingbusinessesandfutureworkforce. 8.UtilizeJobzBilltoinitiateprivatedevelopment/redevelopment. 9.Workwithcommunitydevelopmentanddeveloperstocreateupper-endhousingin MonticellotoattractCEOs 10.Exploreoptionstogenerateadditionalelectricalsupplytoindustrialareas. 11.ExploreoptionstorelocateelectricalsubstationfromCargill'sdowntownsitetocreate expansionopportunities. 12.ImplementrecommendationsfromconsultantsregardingusesoffundsavailableinTIF District1-22. 13.EngageintheGreaterMSPorganization. 14.Implementmonitoring/trackingmethodsforEDAprograms. 15.Continuetobuildamorerobustwebsiteandmarketingbrand. ISSUES: 1.Consistentadministrationofcitypolicies,plans,ordinances,guidelines,statutes,etc. 2.Needforhigherwagejobsinthecommunity. 3.Promotionofcity'snewfiberopticnetwork. 130 MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Taxincrementscollected 1,202,240$1,166,203$1,050,563$945,725$681,240$ BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloEconomicDevelopmentAuthorityprogramsandgeneral administrationactivities.Thedetailofeachindividualtaxincrementfinancingdistrictisincludedin theappendixofthisdocument.ThemainrevenuesourcefortheEDAFundistaxincrementsfrom thevariousdistricts.Expendituresincludeadministrationcosts,pay-as-you-gopaymentstothe variousdevelopmentprojectsandatransfertothedebtservicefundsforitsshareofthe2005 improvementbond,whichfinancedaninterchangeprojectwithinataxincrementdistrict.Thefuture declineintaxincrementsistheresultofTIFdistrictdecertificationorindividualparceldecertification. BUDGET: EDAFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE TaxIncrements1,202,240$1,165,203$1,050,563$881,630$945,725$681,240$-22.7% Licenses&Permits--------- IntergovernmentalRevenues9,2199,818------- ChargesforServices5,000--2,000---100.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous261,289280,923430,327146,882147,39290,100-38.7% OperatingTransfers2,302,8325,301---80,000--- TOTALREVENUES3,780,580$1,461,245$1,480,890$1,030,512$1,093,117$851,340$-17.4% EXPENDITURES PersonnelServices1,051$25,673$25,864$23,560$23,560$110,407$368.6% Supplies--------- OtherServices&Charges28,621198,115465,79066,975154,02758,201-13.1% CapitalOutlay1,192,737595,403434,460358,3691,267,031288,465-19.5% OperatingTransfers363,712673,456316,279320,584699,264774,403141.6% TOTALEXPENDITURES1,586,121$1,492,647$1,242,393$769,488$2,143,882$1,231,476$60.0% FUNDBALANCE-JANUARY15,077,097$7,271,556$7,240,154$7,478,651$7,478,651$6,427,886$ Excess(Deficiency)of RevenuesoverExpenditures2,194,459(31,402)238,497261,024(1,050,765)(380,136) FUNDBALANCE-DECEMBER317,271,556$7,240,154$7,478,651$7,739,675$6,427,886$6,047,750$ 131 DEPUTYREGISTRARFUND DEPARTMENT:DeputyRegistrar(DMV) SUPERVISOR:FinanceDirector FUND#:217 ACTIVITY#:41990 ACTIVITYSCOPE: TheDeputyRegistrar(DMV)isacity-basedserviceentity,whichassistscustomerswiththepurchase ofvehiclelicenseplates/tabs,DNRlicensesandotherlicensesasrequiredbytheStateofMinnesota. OBJECTIVES: 1.MarketingDMVservicestopublicanddealerships. 2.Addandimprovecustomerservices. 3.Updateemployeetrainingandcertifications. ISSUES: 1.Changestostatelicensingregulations. 2.Availabilityofstateequipmentduringlicenseprocessing. 3.Providingserviceswhichhavenocharges. 4.Economicpressuresonvariouscustomers,includingdealerships. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Motorvehicletransactions 49,439 51,250 53,953 58,000 58,000 DNRtransactions 5,401 5,982 5,621 5,700 5,700 Game&Fishtransactions 268 350 376 400 400 Dealershipsserviced 25 35 35 38 38 Driver'slicensetransactions 450 605 326 650 650 BUDGETCOMMENTARY: ThemainrevenuesourcefortheDMVisthefeeschargedfortheissuanceofvariouslicenses.In2009 theDMVbeganpartialdriver’slicenseservicesandthehopeisthatinfuturetheDMVwillbegranted fulldriver’slicensecapabilities.For2012revenuesareprojectedtoincreaseastheyhaveinthepast. In2012thepersonnelservicesaredecreasedtoreflectone-full-timebenefitedpositionbeing changedtotwopart-timenon-benefittedpositions.In2012,thecitytransferred$325,000toother fundstoreduceinterfundloans. 132 BUDGET: DEPUTYREGISTRAR200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices299,201330,733365,285320,025350,030370,05015.6% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous4,6576,81420,2237,5046,0002,000-73.3% OperatingTransfers2,317-------- TOTALREVENUES306,175$337,547$385,508$327,529$356,030$372,050$13.6% EXPENDITURES PersonnelServices238,024$252,820$247,347$240,316$247,316$272,969$13.6% Supplies9,5196,7405,71513,60013,60014,3505.5% OtherServices&Charges14,92014,41212,56719,03019,03018,070-5.0% CapitalOutlay---4,500---100.0% OperatingTransfers--97,50025,000325,000--100.0% TOTALEXPENDITURES262,463$273,972$363,129$302,446$604,946$305,389$1.0% FUNDBALANCE-JANUARY1120,958$164,670$228,245$250,624$250,624$1,708$ Excess(Deficiency)of RevenuesoverExpenditures43,71263,57522,37925,083(248,916)66,661$ FUNDBALANCE-DECEMBER31164,670$228,245$250,624$275,707$1,708$68,369$ 133 MINNESOTAINVESTMENTFUND DEPARTMENT:MinnesotaInvestmentFund SUPERVISOR:CommunityDevelopmentDirector FUND#:221 ACTIVITY#:46526-46528 ACTIVITYSCOPE: Followingstateandfederalguidelines,theMinnesotaInvestmentFundadministersloanstolocal businesses. OBJECTIVES: 1.TomatchavailablefundswithqualifyingbusinessesinMonticello. ISSUES: 1.NumberofqualifiedbusinessesinMonticello. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Loansoutstanding00000 BUDGETCOMMENTARY: Interestearnedoninvestments,notrepaymentofloans,istheonlyactivityanticipatedin2013. 134 BUDGET: MINNINVESTMENTFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous28,47233,91169,56330,59132,00025,000-18.3% OperatingTransfers--------- TOTALREVENUES28,472$33,911$69,563$30,591$32,000$25,000$-18.3% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES-$-$-$-$-$-$--- FUNDBALANCE-JANUARY1890,524$918,996$952,907$1,022,470$1,022,470$1,054,470$ Excess(Deficiency)of RevenuesoverExpenditures28,47233,91169,56330,59132,00025,000 FUNDBALANCE-DECEMBER31918,996$952,907$1,022,470$1,053,061$1,054,470$1,079,470$ 135 COMMUNITYCENTERFUND DEPARTMENT:CommunityCenter SUPERVISOR:CommunityCenterDirector FUND#:226 ACTIVITY#:45XXX ACTIVITYSCOPE: TheMonticelloCommunityCenterprovidesspaceforavarietyofrecreational,professional,and educationalopportunities.Expendituresforthecommunitycenteraredividedintothreeactivities: administration,programming,andNSPballfieldconcessions. OBJECTIVES: 1.Developaplanforthefutureuseoftheareawhichwasusedasawheelpark(skateboard, bike,androllerblade),includingdesign,financing,construction,andmarketing. 2.Developanon-lineregistrationsystemforprogramandmembershipsignup. 3.Providefacilityimprovementstoincreasecustomers. 4.Maintainthecommunitygarden. 5.Improveballfields. ISSUES: 1.Budgetconstraints. 2.Limitsduetofacilitysize,spaceavailability,andparkingavailability. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Customervisits,numberof 186,279 183,527 179,889 176,000 185,000 Grossprogramsales 149,829$167,723$168,569$162,000$158,200$ Rentalrevenue 163,441$157,481$178,492$205,000$185,000$ BUDGETCOMMENTARY: TherevenuebudgetforCommunityCenter-Administrationincludesallrevenuesforthefund.The largestrevenuesourceispropertytaxes($1,170,000in2013)andmemberships($758,000).Other revenuesincludeconcessionsales,roomrentals,andprogramfees.Thisactivityalsoincludesall personnelserviceexpendituresfortheFund.In2013,otherservicesandchargesareexpectedto declineasaresultofenergyefficiencyimprovementsandmaintenanceperformedaspartofthe 2012capitalprojects(Natatorium).Thepersonnelservicesbudgetincludesafullstepincreasewith 136 nocost-of-livingincreaseanda9%healthinsurancebenefitcostincrease.Otherbudgetitemsare expectedtoremainclosetoprioryearlevels.In2012,operatingtransfersinwillbeusedtopurchase equipmentandoperatingtransfersoutwillbeusedfordebtservice. BUDGET: COMMUNITYCENTER200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes1,260,940$1,049,658$1,048,883$1,150,000$1,150,000$1,170,000$1.7% Licenses&Permits--------- IntergovernmentalRevenues63,70861,274------- ChargesforServices1,103,8511,097,6651,194,3891,201,1001,201,1001,292,7007.6% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous56,79869,28765,97430,97530,97535,50014.6% OperatingTransfers-200,000-700,000850,000100,000-85.7% TOTALREVENUES2,485,297$2,477,884$2,309,246$3,082,075$3,232,075$2,598,200$-15.7% EXPENDITURES PersonnelServices915,041$886,333$940,447$925,378$923,378$976,660$5.5% Supplies190,622183,616213,163222,300222,300227,7002.4% OtherServices&Charges461,233396,355426,961513,286513,286389,840-24.1% CapitalOutlay5,815-91,5171,661,0001,661,000129,000-92.2% OperatingTransfers700,000815,032815,000890,000890,000875,000-1.7% TOTALEXPENDITURES2,272,711$2,281,336$2,487,088$4,211,964$4,209,964$2,598,200$-38.3% FUNDBALANCE-JANUARY1746,716$959,302$1,155,850$978,008$978,008$119$ Excess(Deficiency)of RevenuesoverExpenditures212,586196,548(177,842)(1,129,889)(977,889)-$ FUNDBALANCE-DECEMBER31959,302$1,155,850$978,008$(151,881)$119$119$ ADMINISTRATIONDIVISION: Administrationmanagesandtrackspayroll,maintenance,andallexpensesthatarebuildingwide, includingdebtservice,utilities,andinsurance.Thisisthegeneraloperatingactivityforthe communitycenter. COMMUNITYCENTER200920102011201220122013% ADMINISTRATIONACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices915,041$886,333$940,447$925,378$923,378$976,660$5.5% Supplies91,41397,692102,46499,70099,700112,60012.9% OtherServices&Charges407,175338,052386,256443,086443,086350,790-20.8% CapitalOutlay--74,2611,661,0001,661,00029,000-98.3% OperatingTransfers700,000815,032815,000890,000890,000875,000-1.7% TOTALEXPENDITURES2,113,629$2,137,109$2,318,428$4,019,164$4,017,164$2,344,050$-41.7% 137 PROGRAMMINGDIVISION: Thecommunitycenterprogrammingactivityprovideseducational,recreational,andprofessional activitiestoavarietyofusers.Theprogrammingactivitymanagesspecificcoststhatpertainto programsofferedatthecommunitycenter,aswellasexpendituresdirectlyattributableto programmedareasofthefacility,i.e.indoorplay,fitnessarea,andpool.Facilityconcession expendituresarealsoincluded. COMMUNITYCENTER200920102011201220122013% PROGRAMMINGACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies81,50567,64893,721105,000105,00096,700-7.9% OtherServices&Charges49,08751,50935,73861,50061,50032,350-47.4% CapitalOutlay5,815-17,256--100,000--- OperatingTransfers--------- TOTALEXPENDITURES136,407$119,157$146,715$166,500$166,500$229,050$37.6% NSPBALLFIELDCONSCESSIONSDIVISION: Ballfieldconcessionsmanagesandtrackstheexpenditures,exceptpayrollandemployee expenditures,forballfieldconcessions,whichatthistimeareonlylocatedattheNSP(Xcel) Ballfields.Theconcessionsprovidesnackfooditemsduringscheduledsoftball,baseball,andfootball gamesand/orpractices. COMMUNITYCENTER200920102011201220122013% NSPBALLFIELDACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PersonnelServices-$-$-$-$-$-$--- Supplies17,70418,27616,97817,60017,60018,4004.5% OtherServices&Charges4,9716,7944,9678,7008,7006,700-23.0% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES22,675$25,070$21,945$26,300$26,300$25,100$-4.6% 138 PARK&PATHWAYDEDICATIONFUND DEPARTMENT:Recreation&Culture SUPERVISOR:ParksSuperintendent FUND#:229 ACTIVITY#:45202 ACTIVITYSCOPE: ActivitiesoftheParkandPathwayDedicationFundincludeupdatingandmaintainingthecity's pathwaysystem,aswellasdesignatingfundsforfuturecityparksandpathways. OBJECTIVES: 1.ContinuetomaintainexistingpathwaysoftheCity. 2.Planforintegrationoffundstowardparklandpurchases. 3.ContinuethepurchaseoftheBertramChainofLakes(formerlytheY.M,C.A.)property. ISSUES: 1.Economicimpactonnewdevelopmentandhomeconstruction. 2.Timeconstraintsofotherprojects. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Themajorrevenuesourceisnormallyparkdedicationfees.However,duetotheeconomicconditions andlackofnewdevelopment,for2013themainrevenuesourcewillbeanoperatingtransfertohelp fundthepurchaseoftheBertramChainofLakesproperty.The2013expendituresincludepathway improvementsandthenextpurchaseoftheBertramChainofLakesproperty. 139 BUDGET: PARK&PATHWAYDEDICATION200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--538,487-325,000---- ChargesforServices---52,500---100.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous13,95319,54725,31614,40314,4035,000-65.3% OperatingTransfers496,627300,000-400,000573,833600,00050.0% TOTALREVENUES510,580$319,547$563,803$466,903$913,236$605,000$29.6% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges-5,0227,630------ CapitalOutlay-289,1841,144,250600,000650,000600,0000.0% OperatingTransfers--------- TOTALEXPENDITURES-$294,206$1,151,880$600,000$650,000$600,000$0.0% FUNDBALANCE-JANUARY1(89,734)$420,846$446,187$(141,890)$(141,890)$121,346$ Excess(Deficiency)of RevenuesoverExpenditures510,58025,341(588,077)(133,097)263,2365,000 FUNDBALANCE-DECEMBER31420,846$446,187$(141,890)$(274,987)$121,346$126,346$ 140 CLOSEDSPECIALREVENUEFUNDS CLOSEDFUNDSINCLUDEDINSUMMARYTOTAL: EconomicRecoveryGrant(S.C.E.R.G.)Fund CLOSEDFUNDSSUMMARYTOTAL: CLOSEDSPECIALREVENUE200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues188,054-------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous467-------- OperatingTransfers--------- TOTALREVENUES188,521$-$-$-$-$-$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay188,054-------- OperatingTransfers--------- TOTALEXPENDITURES188,054-------- FUNDBALANCE-JANUARY1(467)$-$-$-$-$-$ Excess(Deficiency)of RevenuesoverExpenditures467----- FUNDBALANCE-DECEMBER31-$-$-$-$-$-$ 141 Thispageintentionallyleftblank 142 DEBTSERVICEFUNDS-SUMMARY DESCRIPTION Debtservicesfundsareusedtoaccountfortheaccumulationofresourcesforthepaymentofgenerallong- termdebt,excludingdebtissuedforandservicedbyanenterprisefund.Debtservicefundsusethemodified accrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecitycurrentlyhassixactive debtservicefunds. BUDGETISSUES Thecity'sbondratingwasdowngradedfromAa3toA2in2012byMoody'sInvestorServices.Thecityexpects twodebtissuesin2013:G.O.revenuebondsforsewagetreatmentplantimprovementandcapitalequipment notesforqualifyingequipment.Further,onebondissuewillberedeemed.In2011,thecityissueddebtto advancecross-overrefund2005AG.O.ImprovementBonds,whichwillbecalledinFebruaryof2013.See individualfundsforthebudgetissuesfacingeachdebtservicefunds. BUDGETSUMMARY DEBTSERVICEFUNDS200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes780,177$1,170,197$1,088,381$1,218,752$1,210,415$1,190,000$-2.4% Licenses&Permits--------- IntergovernmentalRevenues41,05565,531------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments1,320,818702,9321,143,6831,082,687853,967744,850-31.2% Miscellaneous132,750481,438253,172252,894257,437234,100-7.4% OperatingTransfers3,132,4973,354,1433,119,1803,246,6033,747,3263,432,0745.7% DebtProceeds-510,00011,036,910------ TOTALREVENUES5,407,297$6,284,241$16,641,326$5,800,936$6,069,145$5,601,024$-3.4% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges6,36714,530------- CapitalOutlay--------- DebtService7,933,3177,384,8416,236,9856,293,2026,293,20216,911,117168.7% OperatingTransfers1,151,754530,519------- TOTALEXPENDITURES9,091,438$7,929,890$6,236,985$6,293,202$6,293,202$16,911,117$168.7% FUNDBALANCE-JANUARY18,051,696$4,367,555$2,721,906$13,126,247$13,126,247$12,902,190$ Excess(Deficiency)of RevenuesoverExpenditures(3,684,141)(1,645,649)10,404,341(492,266)(224,057)(11,310,093) FUNDBALANCE-DECEMBER314,367,555$2,721,906$13,126,247$12,633,981$12,902,190$1,592,097$ 143 2005AG.O.IMPROVEMENTBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:312 ACTIVITY#:47000 ACTIVITYSCOPE: The2005AG.O.ImprovementBondfinancedvariousinfrastructureimprovementsincludingthe Highway18interchangeandotherstreetandutilitiesimprovements.Thedebtserviceschedulecalls forFebruaryprincipalpaymentsandFebruaryandAugustinterestpaymentsthroughtheyear2023, withacallfeatureonFebruary,2013.Theinterestrateonremainingbondcouponsis4.5%.The revenuesourcewillbespecialassessmentsagainstbenefitedproperties,taxincrements,transfers fromutilityaccessfunds,andpropertytaxes.Thecityissuedadvancecross-overrefundingbondsin 2011torefundthisbondin2013. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2005AG.0.ImprovementBondsincludespecialassessments collectedfrombenefitedproperties,transfersfromcityutilityaccessfunds,taxincrementsand propertytaxes.TheonlyexpendituresareFebruary2013principalandinterestpayments.Thisdebt willberetiredin2013withproceedsfromthe2011AG.O.RefundingBond.Twoparcelswith$1.7M inspecialassessmentsareexpectedtobecomedelinquent.Theannualinstallmentsonthe$1.7Mis $240,000. 144 BUDGET: 2005AG.O.BONDFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes150,306$234,780$232,130$251,906$251,906$245,000$-2.7% Licenses&Permits--------- IntergovernmentalRevenues7,88714,337------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments625,735324,831166,846760,514536,374436,600-42.6% Miscellaneous95,089452,316205,219231,953232,600224,100-3.4% OperatingTransfers1,610,1411,605,5091,593,6301,598,4081,959,1311,798,87912.5% DebtProceeds--------- TOTALREVENUES2,489,158$2,631,773$2,197,825$2,842,781$2,980,011$2,704,579$-4.9% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges4,0004,201------- CapitalOutlay--------- DebtService3,234,1813,178,8633,127,0463,053,7383,053,7382,794,556-8.5% OperatingTransfers157,722-------- TOTALEXPENDITURES3,395,903$3,183,064$3,127,046$3,053,738$3,053,738$2,794,556$-8.5% FUNDBALANCE-JANUARY12,678,185$1,771,440$1,220,149$290,928$290,928$217,201$ Excess(Deficiency)of RevenuesoverExpenditures(906,745)(551,291)(929,221)(210,957)(73,727)(89,977) FUNDBALANCE-DECEMBER311,771,440$1,220,149$290,928$79,971$217,201$127,224$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2013 13,210,000$274,056$4.50%13,484,056$ DebtServiceSchedule 145 2007AG.O.IMPROVEMENTBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:313 ACTIVITY#:47000 ACTIVITYSCOPE: The2007AG.0.ImprovementBondfinancedvariousinfrastructureimprovementsincludingstreet andutilitiesimprovements,astoragebuildingandmixingequipmentatthesewagetreatmentplant, andrefundedthe2000AImprovementBond.ThedebtserviceschedulecallsforFebruaryprincipal paymentsandFebruaryandAugustinterestpaymentsthroughtheyear2018,withacallfeatureof February2016.Theremaininginterestrateonbondcouponsis4.00%.Therevenuesourceisspecial assessmentsagainstbenefitedproperties,sewerrevenuesandpropertytaxes. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2007AG.0.ImprovementBondsincludespecialassessments, transfersfromthecity'sSewageFund,andpropertytaxes.Theonlyexpendituresareforthe2013 principalandinterestpaymentsforthisdebtissue. 146 BUDGET: 2007AIMPROVEMENTBOND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes182,422$391,843$396,736$416,846$408,509$425,000$2.0% Licenses&Permits--------- IntergovernmentalRevenues9,68123,654------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments260,760241,200404,673160,365155,785154,865-3.4% Miscellaneous1,377(14,274)(24,623)(11,256)---100.0% OperatingTransfers104,200---140,000---- DebtProceeds--------- TOTALREVENUES558,440$642,423$776,786$565,955$704,294$579,865$2.5% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges1,777126------- CapitalOutlay--------- DebtService607,512689,945686,400623,720623,720735,40017.9% OperatingTransfers87,909-------- TOTALEXPENDITURES697,198$690,071$686,400$623,720$623,720$735,400$17.9% FUNDBALANCE-JANUARY1312,906$174,148$126,500$216,886$216,886$297,460$ Excess(Deficiency)of RevenuesoverExpenditures(138,758)(47,648)90,386(57,765)80,574(155,535) FUNDBALANCE-DECEMBER31174,148$126,500$216,886$159,121$297,460$141,925$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2013595,000$75,900$4.00%670,900$ 8/1/201364,00064,000 2/1/2014620,00064,000 4.00%684,000 8/1/201451,60051,600 2/1/2015640,00051,600 4.00%691,600 8/1/201538,80038,800 2/1/2016665,00038,800 4.00%703,800 8/1/201625,50025,500 2/1/2017625,00025,500 4.00%650,500 8/1/201713,00013,000 2/1/2018650,00013,000 4.00%663,000 Total3,795,000$461,700$4,256,700$ DebtServiceSchedule 147 2008AG.O.REVENUEREFUNDINGBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:314 ACTIVITY#:47000 ACTIVITYSCOPE: The2008AG.O.RevenueRefundingBondrefinancedthe2000APublicProjectRevenueBond.The debtserviceschedulecallsforFebruaryprincipalpaymentsandFebruaryandAugustinterest paymentsthroughtheyear2015.Theremaininginterestrateonthebondcouponsis3.20%. RevenuesgeneratedbytheMonticelloCommunityCenterandatransferofpropertytaxessupport annualdebtservicepayments. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.GenerationofrevenuesbytheCommunityCentertofundoperationsandrepaydebt servicewithaslowofpropertytaxlevyaspossible. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: RevenuesgeneratedbytheMonticelloCommunityCenterandatransferofpropertytaxessupport annualdebtservicepayments.Theonly2013expendituresareforprincipalandinterestpayments. 148 BUDGET: 2008AREVENUEREFUNDING200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous1,60121,91120,97914,8607,5005,000-66.4% OperatingTransfers700,000805,000815,000890,000890,000875,000-1.7% DebtProceeds--------- TOTALREVENUES701,601$826,911$835,979$904,860$897,500$880,000$-2.7% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges38268------- CapitalOutlay--------- DebtService815,003807,6351,102,0801,105,8801,105,8801,079,120-2.4% OperatingTransfers--------- TOTALEXPENDITURES815,041$807,903$1,102,080$1,105,880$1,105,880$1,079,120$-2.4% FUNDBALANCE-JANUARY1768,848$655,408$674,416$408,315$408,315$199,935$ Excess(Deficiency)of RevenuesoverExpenditures(113,440)19,008(266,101)(201,020)(208,380)(199,120) FUNDBALANCE-DECEMBER31655,408$674,416$408,315$207,295$199,935$815$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2013995,000$47,520$3.20%1,042,520$ 8/1/201331,60031,600 2/1/20149,900,00031,600 3.20%9,931,600 8/1/201415,76015,760 2/1/2015985,00015,760 3.20%1,000,760 Total11,880,000$142,240$12,022,240$ DebtServiceSchedule 149 2008AG.O.SEWERREVENUEREFUNDINGBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:315 ACTIVITY#:47000 ACTIVITYSCOPE: The2008AG.O.SewerRevenueRefundingBondsrefinancedasewagetreatmentplant(WWTP) note.ThedebtserviceschedulecallsforFebruaryandAugustprincipalpaymentsandFebruaryand Augustinterestpaymentsthroughtheyear2018,withacallfeatureofFebruary2016.Theaverage interestrateis3.40%.RevenuesourcesincludetransfersfromtheSewerAccessFundandproperty taxes. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2008AG.O.SewerRevenueRefundingBondsincludeatransfer fromthecitySewerAccessFundandpropertytaxes.Theonlyexpendituresareforthe2013principal andinterestpaymentsforthisdebtissue. 150 BUDGET: 2008G.O.SEWERREFUNDING200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes447,449$472,120$410,446$500,000$500,000$500,000$0.0% Licenses&Permits--------- IntergovernmentalRevenues23,48727,540------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous23,50920,67146,17820,17620,1765,000-75.2% OperatingTransfers500,000400,137524,590450,000450,000450,0000.0% DebtProceeds--------- TOTALREVENUES994,445$920,468$981,214$970,176$970,176$955,000$-1.6% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService1,048,8621,049,2391,049,1791,048,8861,048,8861,050,2410.1% OperatingTransfers--------- TOTALEXPENDITURES1,048,862$1,049,239$1,049,179$1,048,886$1,048,886$1,050,241$0.1% FUNDBALANCE-JANUARY1973,985$919,568$790,797$722,832$722,832$644,122$ Excess(Deficiency)of RevenuesoverExpenditures(54,417)(128,771)(67,965)(78,710)(78,710)(95,241) FUNDBALANCE-DECEMBER31919,568$790,797$722,832$644,122$644,122$548,881$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2013429,000$96,067$3.40%525,067$ 8/1/2013436,00088,7743.40%524,774 2/1/2014443,00081,3623.40%524,362 8/1/2014451,00073,8313.40%524,831 2/1/2015458,00066,1643.40%524,164 8/1/2015466,00058,3783.40%524,378 2/1/2016474,00050,4563.40%524,456 8/1/2016482,00042,3983.40%524,398 2/1/2017490,00034,2043.40%524,204 8/1/2017499,00025,8743.40%524,874 2/1/2018507,00017,3913.40%524,391 8/1/2018516,0008,7723.40%524,772 Total5,222,000$547,604$5,769,604$ DebtServiceSchedule 151 2010AG.O.IMPROVEMENTBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:317 ACTIVITY#:47000 ACTIVITYSCOPE: The2010AG.O.ImprovementandRefinancingBondfinancedcapitalprojectsapprovedandstarted in2010andrefinancedthe2002G.O.ImprovementBonds.Thedebtserviceschedulecallsforsemi- annualpaymentsonFebruaryandAugust.Theaverageinterestrateis2.0047%.Therevenue sourcesincludeacombinationofexistingcityfunds,propertytaxes,andspecialassessments. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: Thecityissuedthe$3,255,0002010G.O.ImprovementandRefundingBondtofinancethe reconstructionofWestRiverStreet,intersectionimprovementsontheNortheastcornersofHighway 25andBroadwayandEastRiverStreets,andtorefinancetheG.O.ImprovementBondsof2002. The2010AG.O.ImprovementBondrevenuesourcesareacombinationofexistingcityfunds:Closed (Consolidated)BondFund,StreetLightImprovementFund,StreetReconstructionFund,thethree accessfunds,EconomicDevelopmentFund.Propertytaxesandspecialassessmentswillalsosupport debtservicepayments.Expendituresconsistsolelyofdebtprincipalandinterestpayments. 152 BUDGET: 2010AGOIMPROVEMENTBOND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$(3,825)$49,069$50,000$50,000$20,000$-60.0% Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments-104,028572,164161,808161,808153,385-5.2% Miscellaneous-(2,841)1,810(2,839)(2,839)--100.0% OperatingTransfers--185,960308,195308,195308,1950.0% DebtProceeds--------- TOTALREVENUES-$97,362$809,003$517,164$517,164$481,580$-6.9% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService--201,212460,978460,978448,325-2.7% OperatingTransfers-187,318------- TOTALEXPENDITURES-$187,318$201,212$460,978$460,978$448,325$-2.7% FUNDBALANCE-JANUARY1-$-$(89,956)$517,835$517,835$574,021$ Excess(Deficiency)of RevenuesoverExpenditures-(89,956)607,79156,18656,18633,255 FUNDBALANCE-DECEMBER31-$(89,956)$517,835$574,021$574,021$607,276$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2013405,000$21,970$0.60%426,970$ 8/1/201320,75520,755 2/1/2014320,00020,7550.85%340,755 8/1/201419,39519,395 2/1/2015265,00019,3951.05%284,395 8/1/201518,00418,004 2/1/2016270,00018,0041.45%288,004 8/1/201616,04616,046 2/1/2017275,00016,0461.80%291,046 8/1/201713,57113,571 2/1/2018275,00013,5712.05%288,571 8/1/201810,75310,753 2/1/2019280,00010,7532.25%290,753 8/1/20197,6037,603 2/1/2020290,0007,6032.45%297,603 8/1/20204,0504,050 2/1/2021300,0004,0502.70%304,050 Total2,680,000$242,323$2,922,323$ DebtServiceSchedule 153 2011AG.O.REFUNDINGBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:318 ACTIVITY#:47000 ACTIVITYSCOPE: The2011AG.O.RefundingBondfinancerefinancedthe2005AG.O.ImprovementBonds.Thedebt serviceschedulecallsforsemi-annualpaymentsinFebruaryandAugust.Theaverageinterestrateis 1.6112%.TherevenuesourcesincludeacombinationofexistingCityfunds,apropertytaxlevy,and specialassessments. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 NotApplicable BUDGETCOMMENTARY: Thecityissued$10,735,000in2011G.O.RefundingBondstoadvancerefundthe2005AG.O. ImprovementBonds,whichwillberedeemedinFebruary2013. The2011AG.O.RefundingBond'srevenuesourcewillbeacombinationofexistingcityfunds, includingtransfersfromthethreeutilityaccessfundsandtheEconomicDevelopmentFund,a propertytaxlevy,andspecialassessments.Noexpendituresarebudgetedin2012sincedebt paymentswillbemadefromescrowaccountsonbehalfofthecity.Revenueswillstillberecordedin the2005AG.0.ImprovementBondsFunduntil2014. 154 BUDGET: 2011AREFUNDINGBOND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous--3,609------ OperatingTransfers--------- DebtProceeds--11,036,910------ TOTALREVENUES-$-$11,040,519$-$-$-$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService--71,068--10,803,475--- OperatingTransfers--------- TOTALEXPENDITURES-$-$71,068$-$-$10,803,475$--- FUNDBALANCE-JANUARY1-$-$-$10,969,451$10,969,451$10,969,451$ Excess(Deficiency)of RevenuesoverExpenditures--10,969,451--(10,803,475) FUNDBALANCE-DECEMBER31-$-$10,969,451$10,969,451$10,969,451$165,976$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2013-$113,475$3.20%113,475$ 8/1/2013113,475113,475 2/1/20142,680,000113,4752.00%2,793,475 8/1/201486,67586,675 2/1/20152,310,00086,6752.00%2,396,675 8/1/201563,57563,575 2/1/20162,320,00063,5752.00%2,383,575 8/1/201640,37540,375 2/1/2017710,00040,3752.00%750,375 8/1/201733,27533,275 2/1/2018720,00033,2752.00%753,275 8/1/201826,07526,075 2/1/2019380,00026,0752.00%406,075 8/1/201922,27522,275 2/1/2020390,00022,2752.00%412,275 8/1/202018,37518,375 2/1/2021395,00018,3753.00%413,375 8/1/202112,45012,450 2/1/2022410,00012,4503.00%422,450 8/1/20226,3006,300 2/1/2023420,00063,0003.00%483,000 Total10,735,000$1,015,875$11,750,875$ DebtServiceSchedule 155 CLOSEDDEBTSERVICEFUNDS CLOSEDFUNDSINCLUDEDINSUMMARYTOTAL: 2002G.O.ImprovementBondFund 2003AG.O.ImprovementBondFund 1999G.O.ImprovementBondFund 2000BG.O.ImprovementBondFund 1989G.O.TaxIncrementBondFund 2004AG.O.TaxableTaxIncrementBond CLOSEDFUNDSSUMMARYTOTAL: CLOSEDDEBTSERVICE200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$75,279$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments434,32332,873------- Miscellaneous11,1743,655------- OperatingTransfers218,156543,497------- DebtProceeds-510,000------- TOTALREVENUES663,653$1,165,304$-$-$-$-$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges5529,935------- CapitalOutlay--------- DebtService2,227,7591,659,159------- OperatingTransfers906,123343,201------- TOTALEXPENDITURES3,134,434$2,012,295$-$-$-$-$--- FUNDBALANCE-JANUARY13,317,772$846,991$-$-$-$-$ Excess(Deficiency)of RevenuesoverExpenditures(2,470,781)(846,991)---- FUNDBALANCE-DECEMBER31846,991$-$-$-$-$-$ 156 CAPITALPROJECTFUNDS-SUMMARY DESCRIPTION Capitalprojectfundsareusedtoaccountforfinancialresourcesthatarerestricted,committed,orassignedto expenditureforcapitaloutlaysincludingtheacquisitionorconstructionofcapitalfacilitiesandothercapital assets—excludingcapitalassetsfinancedbyproprietaryfunds(enterpriseorinternalservice).Capitalproject fundsusethemodifiedaccrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecity currentlyhassevenactivecapitalprojectfunds. BUDGETISSUES Financingcapitalassetadditionsorreplacementsisanongoingchallenge,especiallyinanenvironmentwhere thefocusisonmaintainingalow,stablepropertytaxlevy.Seetheindividualfundsforthebudgetissuesfacing eachcapitalprojectfund. BUDGETSUMMARY TOTALCAPITALPROJECT200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes283,713$8,908$33,420$25,000$26,950$-$-100.0% TaxIncrements-------- Franchise&OtherTaxes286,869297,584228,216150,000150,000130,000-13.3% Licenses&Permits--------- IntergovernmentalRevenues62,611244,45781,520--633,700--- ChargesforServices123,972522,857881,348156,765156,765154,415-1.5% Fines&Forfeits--------- SpecialAssessments934,092753,076703,408802,701605,474441,095-45.0% Miscellaneous271,701399,490710,949328,722301,369396,72520.7% OperatingTransfers3,769,2251,293,201922,5002,245,0003,723,019766,300-65.9% DebtProceeds-2,745,0001,669,1396,000,000---100.0% TOTALREVENUES5,732,183$6,264,573$5,230,500$9,708,188$4,963,577$2,522,235$-74.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies-89611,822------ OtherServices&Charges105,538425,16134,563555,500105,50025,000-95.5% CapitalOutlay366,4532,773,3222,837,6524,233,2002,017,6002,457,335-42.0% DebtService10,42310,248103,757------ OperatingTransfers7,208,5971,733,3693,040,0024,406,0195,395,7002,835,471-35.6% TOTALEXPENDITURES7,691,011$4,942,996$6,027,796$9,194,719$7,518,800$5,317,806$-42.2% FUNDBALANCE-JANUARY111,106,377$9,147,549$10,469,126$9,671,830$9,671,830$7,116,607$ Excess(Deficiency)of RevenuesoverExpenditures(1,958,828)1,321,577(797,296)513,469(2,555,223)(2,795,571) FUNDBALANCE-DECEMBER319,147,549$10,469,126$9,671,830$10,185,299$7,116,607$4,321,036$ 157 CAPITALPROJECTFUND DEPARTMENT:CapitalProjectFund SUPERVISOR:CityEngineer FUND#:401 ACTIVITY#:43300 ACTIVITYSCOPE: TheCapitalProjectFundisgenericfundofthesametypeusedtoaccountforon-goingcapitalasset additionsandreplacements.Capitalassetsacquiredthroughthisfundincludestreetimprovements orotherinfrastructureandbuildings. OBJECTIVES: 1.Maintainandupgradecityinfrastructure. 2.Extendcityinfrastructuretonewdevelopments. ISSUES: 1.Findingadequateresourcesforvariousprojectswhilemaintainingalow,stableproperty taxlevy. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 NotApplicable BUDGETCOMMENTARY: Thecityhasonemajorprojectbudgetedfor2013:Extensionof7th Street.Fundingfor7th Street includesstateaidof$633,700andoperatingtransfersof$766,300.Thisfundiscombinedwith anotherfund(ClosedBondFund)forfinancialreportingpurposes. 158 BUDGET: CAPITALPROJECTFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--43,375--633,700--- ChargesforServices20,125445,762613,623------ Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous(14,312)(76,699)(67,135)(56,075)6,79115,000-126.7% OperatingTransfers69,462700,000672,5001,970,0003,148,680766,300-61.1% DebtProceeds-2,745,0001,669,1396,000,000---100.0% TOTALREVENUES75,275$3,814,063$2,931,502$7,913,925$3,155,471$1,415,000$-82.1% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies-896------- OtherServices&Charges97,303423,668333540,00090,00025,000-95.4% CapitalOutlay262,8722,797,3292,761,6143,560,0001,564,4001,400,000-60.7% OperatingTransfers34---299,339100,000--- TOTALEXPENDITURES360,209$3,221,893$2,761,947$4,100,000$1,953,739$1,525,000$-62.8% FUNDBALANCE-JANUARY1(1,839,412)$(2,124,346)$(1,532,176)$(1,362,621)$(1,362,621)$(160,889)$ Excess(Deficiency)of RevenuesoverExpenditures(284,934)592,170169,5553,813,9251,201,732(110,000) FUNDBALANCE-DECEMBER31(2,124,346)$(1,532,176)$(1,362,621)$2,451,304$(160,889)$(270,889)$ 159 SANITARYSEWERACCESSFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:401 ACTIVITY#:49201 ACTIVITYSCOPE: TheSanitarySewerAccessFundprovidesresourcesformajorimprovementstothesanitarysewer system.Impactfeesarecollectedonbuildingpermitsfornewconstructionandlotdevelopment. Thesefeesarealsousedtoretiredebtservicerelatedtoimprovementstothesanitarysewer system. OBJECTIVES: 1.Maintainandupgradesanitarysewersystem. 2.Retiredebtservicerelatedtosystemimprovementsinatimelymanner. ISSUES: 1.Buildingpermitsforresidentialandcommercialdevelopmenthasdeclined. 2.Sloweconomy. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesaresanitaryseweraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2008SewerRevenue RefundingBond--whichrefinancedthebondfortheconstructionoftheSewageTreatmentPlant,to the2005AImprovementBond--partoftheinterchangeproject,andtothe2010AImprovementand RefinancingBond--itsshareofthe2010streetreconstructionproject. 160 BUDGET: SANITARYSEWERACCESS200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices80,72061,631188,26778,79578,79578,7950.0% Fines&Forfeits--------- SpecialAssessments--844------ Miscellaneous111,304145,388175,506102,357102,35750,000-51.2% OperatingTransfers983,645-------- DebtProceeds--------- TOTALREVENUES1,175,669$207,019$364,617$181,152$181,152$128,795$-28.9% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges312-1,041------ CapitalOutlay--------- OperatingTransfers1,213,0301,112,9961,309,2031,285,4131,484,8871,283,371-0.2% TOTALEXPENDITURES1,213,342$1,112,996$1,310,244$1,285,413$1,484,887$1,283,371$-0.2% FUNDBALANCE-JANUARY15,025,026$4,987,353$4,081,376$3,135,749$3,135,749$1,832,014$ Excess(Deficiency)of RevenuesoverExpenditures(37,673)(905,977)(945,627)(1,104,261)(1,303,735)(1,154,576) FUNDBALANCE-DECEMBER314,987,353$4,081,376$3,135,749$2,031,488$1,832,014$677,438$ 161 STORMWATERACCESSFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:402 ACTIVITY#:49201 ACTIVITYSCOPE: TheStormwaterAccessFundprovidesresourcesformajorimprovementstothestormsewer system.Impactfeesarecollectedonbuildingpermitsfornewconstructionandlotdevelopment. Thesefeesarealsousedtoretiredebtservicerelatedtoimprovementstothesanitarysewer system. OBJECTIVES: 1.Maintainandupgradestormsewersystem. 2.Retiredebtservicerelatedtosystemimprovementsinatimelymanner. ISSUES: 1.Buildingpermitsforresidentialandcommercialdevelopmenthasdeclined. 2.Sloweconomy. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesarestormseweraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2005AImprovement Bond--partoftheinterchangeproject,andtothe2010AImprovementandRefinancingBond--its shareofthe2010stormsewerproject.The2013capitaloutlaybudgetincludespondimprovements. 162 BUDGET: STORMWATERACCESSFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices3,3437,16952,88352,35052,35050,000-4.5% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous47,15474,340126,44261,66061,66040,000-35.1% OperatingTransfers787,262-------- DebtProceeds--------- TOTALREVENUES837,759$81,509$179,325$114,010$114,010$90,000$-21.1% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges1,77059916,54015,50015,500--100.0% CapitalOutlay-(6,067)-134,500134,50040,000-70.3% OperatingTransfers267,591264,599472,861322,043396,073321,800-0.1% TOTALEXPENDITURES269,361$259,131$489,401$472,043$546,073$361,800$-23.4% FUNDBALANCE-JANUARY11,722,683$2,291,081$2,113,459$1,803,383$1,803,383$1,371,320$ Excess(Deficiency)of RevenuesoverExpenditures568,398(177,622)(310,076)(358,033)(432,063)(271,800) FUNDBALANCE-DECEMBER312,291,081$2,113,459$1,803,383$1,445,350$1,371,320$1,099,520$ 163 WATERACCESSFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:401 ACTIVITY#:49201 ACTIVITYSCOPE: TheWaterAccessFundprovidesresourcesformajorimprovementstothewatersystem.Impact feesarecollectedonbuildingpermitsfornewconstructionandlotdevelopment.Thesefeesarealso usedtoretiredebtservicerelatedtoimprovementstothewatersystem. OBJECTIVES: 1.Maintainandupgradewatersystem. 2.Retiredebtservicerelatedtosystemimprovementsinatimelymanner. ISSUES: 1.Buildingpermitsforresidentialandcommercialdevelopmenthasdeclined. 2.Sloweconomy. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesarewateraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2005AImprovement Bond,andtothe2010AImprovementandRefinancingBond--itsshareofthe2010watermain project. 164 BUDGET: WATERACCESSFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices19,7848,29226,57525,62025,62025,6200.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous21,73419,5966,6299,748---100.0% OperatingTransfers254,596-------- DebtProceeds--------- TOTALREVENUES296,114$27,888$33,204$35,368$25,620$25,620$-27.6% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges2641001,022------ CapitalOutlay--------- OperatingTransfers311,246310,774340,303359,563239,563--100.0% TOTALEXPENDITURES311,510$310,874$341,325$359,563$239,563$-$-100.0% FUNDBALANCE-JANUARY1835,752$820,356$537,370$229,249$229,249$15,306$ Excess(Deficiency)of RevenuesoverExpenditures(15,396)(282,986)(308,121)(324,195)(213,943)25,620 FUNDBALANCE-DECEMBER31820,356$537,370$229,249$(94,946)$15,306$40,926$ 165 STREETLIGHTINGIMPROVEMENTFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:405 ACTIVITY#:43162 ACTIVITYSCOPE: TheStreetLightingImprovementFundprovidesresourcesforimprovementstothestreetlighting system.Electricfranchisefeesarethefund’sprimaryrevenuesources. OBJECTIVES: 1.Upgradetraditionallightstocolonialstylelights. 2.WorkwithMNDOTtoaddbatteryback-uptosignalsonTH25. 3.Replaceandmodifylightingsysteminthedowntownarea. ISSUES: 1.Budgetconstraints. 2.DevelopmentofalightreplacementprogramwithWrightHennepinandXcelEnergy. 3.Verifylampandfixturemaintenancebyutilitycompanies. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 NotApplicable BUDGETCOMMENTARY: Electricfranchisefeesprovideresourcesforlightingprojects,oftenconjunctionwithotherstreet improvementprojects.Forexample,the2013operatingtransferstootherfundsinclude$96,300for streetlightsforthe7th Streetextensionproject.Capitaloutlayfor2013includesalightingprojectfor East/WestBridgePark. 166 BUDGET: STREETLIGHTIMPROVEMENTS200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Franchise&OtherTaxes286,869297,584228,216150,000150,000130,000-13.3% Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous15,11928,01580,78530,510---100.0% OperatingTransfers30,000-------- DebtProceeds--------- TOTALREVENUES331,988$325,599$309,001$180,510$150,000$130,000$-28.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay-----200,000--- OperatingTransfers--273,060200,000400,00096,300-51.9% TOTALEXPENDITURES-$-$273,060$200,000$400,000$296,300$48.2% FUNDBALANCE-JANUARY1272,090$604,078$929,677$965,618$965,618$715,618$ Excess(Deficiency)of RevenuesoverExpenditures331,988325,59935,941(19,490)(250,000)(166,300) FUNDBALANCE-DECEMBER31604,078$929,677$965,618$946,128$715,618$549,318$ 167 STREETRECONSTRUCTIONFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:406 ACTIVITY#:43121 ACTIVITYSCOPE: TheStreetReconstructionFundwasestablishedtotrackannualimprovementstocityinfrastructure. Improvementsarebasedonanannualreconstructionschedule. OBJECTIVES: 1.Improvecitystreetsonthecapitalimprovementplan. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: PastrevenuesourceshaveincludedpropertytaxesandoperatingtransfersfromtheLiquorFund. Neitherthetaxnortransferhasbeenbudgetedfor2013.Capitaloutlayincludesannualmilland overlayimprovements,andoperatingtransfersoutinclude$219,000todebtservicefundsand $215,000for7th StreetextensionintheCapitalProjectFund. 168 BUDGET: STREETRECONSTRUCTION200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes283,713$6,310$24,867$25,000$26,950$-$-100.0% Licenses&Permits--------- IntergovernmentalRevenues14,094-------- ChargesforServices-3------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous60,069103,337247,77599,96150,00050,000-50.0% OperatingTransfers862,806250,000250,000275,000275,000--100.0% DebtProceeds--------- TOTALREVENUES1,220,682$359,650$522,642$399,961$351,950$50,000$-87.5% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay-----350,000--- OperatingTransfers30,346-192,5751,839,0001,862,005434,000-76.4% TOTALEXPENDITURES30,346$-$192,575$1,839,000$1,862,005$784,000$-57.4% FUNDBALANCE-JANUARY11,450,844$2,641,180$3,000,830$3,330,897$3,330,897$1,820,842$ Excess(Deficiency)of RevenuesoverExpenditures1,190,336359,650330,067(1,439,039)(1,510,055)(734,000) FUNDBALANCE-DECEMBER312,641,180$3,000,830$3,330,897$1,891,858$1,820,842$1,086,842$ 169 CAPITALOUTLAYREVOLVINGFUND DEPARTMENT:CapitalOutlayRevolvingFund SUPERVISOR:CityAdministrator/FinanceDirector FUND#:407 ACTIVITY#:49201 ACTIVITYSCOPE: TheCapitalOutlayRevolvingFundwasestablishedtoacquireandholdproperties,makingany necessaryimprovementwhileheldforresale.Thefundisalsousedtopurchaselargeequipment andvehicles.Thefundwilllikelybedividedbyitsmissionintotwoseparatefunds,includingan internalservicefundforequipmentpurchaseandleaseback. OBJECTIVES: 1.Makenecessaryimprovementstolandheldforresale. 2.Acquirepropertiesatpresentmarketvaluetoaddresscomprehensiveplanneeds. 3.Acquireequipmentandleasebacktovariousdepartments. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20092010201120122013 Dataunderdevelopment BUDGETCOMMENTARY: Therevenueactivityfor2013includescityequipmentrentalfeeandinterestearnings,which becauseofinterestratesandlowercashbalancesisprojectedlowerin2013.Capitaloutlayfor2013 includes$467,335forequipmentpurchases. 170 BUDGET: CAPIITALPROJECTREVOLVING200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues48,517244,45738,145------ ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous(3,689)100,62298,08165,87365,873236,725259.4% OperatingTransfers773,388-------- DebtProceeds--------- TOTALREVENUES818,216$345,079$136,226$65,873$65,873$236,725$259.4% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--11,822------ OtherServices&Charges5,88979415,627------ CapitalOutlay103,581(17,940)76,038538,700318,700467,335-13.2% OperatingTransfers2,129,30545,000--140,000---- TOTALEXPENDITURES2,238,775$27,854$103,487$538,700$458,700$467,335$-13.2% FUNDBALANCE-JANUARY12,126,033$705,474$1,022,699$1,055,438$1,055,438$662,611$ Excess(Deficiency)of RevenuesoverExpenditures(1,420,559)317,22532,739(472,827)(392,827)(230,610) FUNDBALANCE-DECEMBER31705,474$1,022,699$1,055,438$582,611$662,611$432,001$ 171 CLOSEDBONDFUND DEPARTMENT:ClosedBondFund SUPERVISOR:FinanceDirector FUND#:300 ACTIVITY#:47000 ACTIVITYSCOPE: FormerlyknownastheConsolidatedBondFund,thisfundhasbeenremovefromthedebtservice sectionandrenamed.Thefundhasnodebtobligation.However,specialassessmentssupporting pastdebtservicecontinuetoprovidefundingforcityprojects. OBJECTIVES: 1.Providefundingforvariouscityprojects,includingBertramChainofLakesproperty acquisitions. ISSUES: 1.Maintainlowestpossiblepropertytax. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 NotApplicable BUDGETCOMMENTARY: In2013,specialassessmentscollectedonprojectswithretireddebtwillprovidefundingforBertram ChainofLakespropertyacquisitionsandpathwayimprovementsthroughatransfertothePark& PathwayDedicationFund. 172 BUDGET: CLOSEDBONDFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$2,699$8,553$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments934,092753,076702,564802,701605,474441,095-45.0% Miscellaneous34,3224,79042,86614,68814,6885,000-66.0% OperatingTransfers8,066343,201--299,339---- DebtProceeds--------- TOTALREVENUES976,480$1,103,766$753,983$817,389$919,501$446,095$-45.4% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService10,42310,248103,757------ OperatingTransfers3,257,045-452,000400,000573,833600,00050.0% TOTALEXPENDITURES3,267,468$10,248$555,757$400,000$573,833$600,000$50.0% FUNDBALANCE-JANUARY11,513,361$(777,627)$315,891$514,117$514,117$859,785$ Excess(Deficiency)of RevenuesoverExpenditures(2,290,988)1,093,518198,226417,389345,668(153,905) FUNDBALANCE-DECEMBER31(777,627)$315,891$514,117$931,506$859,785$705,880$ 173 Thispageintentionallyleftblank 174 ENTERPRISEFUNDS-SUMMARY DESCRIPTION Enterprisefundsareusedtoreportanactivityforwhichafeeischargedtoexternalusersforgoodsorservices. Unlikegovernmentalfunds,enterprisefundsfocusonthedeterminationofoperatingincome,changesinnet position(orcostrecovery),financialposition,andcashflows.Enterprisefundsuseanaccrualbasisofaccounting forfinancialreportingpurposes.Amodifiedaccrualbasiswillbeusedforbudgetingpurposesinthisreport. Consequently,thebottomlineforeachenterprisefundislabeledfundbalanceratherthannetposition,which includescapitalassets,long-termdebtandothernoncurrentitems.Fundbalanceinenterprisefundsisroughly thesameasworkingcapitalinenterprisefund.Thecitycurrentlyhasfiveactiveenterprisefunds:Water, Sewage,Liquor,Cemetery,FiberOptics. BUDGETISSUES Eachenterprisefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY TOTALENTERPRISEFUNDS200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- SaleofGoods4,352,5704,477,6514,653,3854,418,5004,461,5004,461,5001.0% Licenses&Permits13,2287,8763203,7003,7003,7000.0% IntergovernmentalRevenues-8,069------- ChargesforServices2,248,7842,739,5694,248,4435,215,5594,567,1004,567,100-12.4% Fines&Forfeits--------- SpecialAssessments161,258160,317158,543150,000150,000150,0000.0% Miscellaneous265,340368,1962,066,504234,312236,395224,570-4.2% ContributedCapital-143,433------- OperatingTransfers9,80420,065--4,450,000220,000--- DebtProceeds5,710,67311,767,4201,949,327--6,100,000--- TOTALREVENUES12,761,657$19,692,596$13,076,522$10,022,071$13,868,695$15,726,870$56.9% EXPENDITURES PersonnelServices928,833$1,337,575$1,574,284$1,577,288$1,571,690$1,577,521$0.0% Supplies3,662,3934,670,0634,311,2123,961,2713,961,2713,945,635-0.4% OtherServices&Charges2,362,6643,562,5823,860,6233,746,1602,430,5692,285,799-39.0% CapitalOutlay5,213,3194,394,046128,5911,680,960780,0007,304,100334.5% DebtService2,017,3231,936,6121,939,9201,768,337923,000120,000-93.2% OperatingTransfers260,937274,588723,687950,0003,707,219633,500-33.3% TOTALEXPENDITURES14,445,469$16,175,466$12,538,317$13,684,016$13,373,749$15,866,555$15.9% FUNDBALANCE-JANUARY14,549,180$2,865,368$6,382,498$6,920,703$6,920,703$7,415,649$ Excess(Deficiency)of RevenuesoverExpenditures(1,683,812)3,517,130538,205(3,661,945)494,946(139,685) FUNDBALANCE-DECEMBER312,865,368$6,382,498$6,920,703$3,258,759$7,415,649$7,275,965$ 175 WATERFUND DEPARTMENT:PublicWorks SUPERVISOR:WaterSuperintendent FUND#:601 ACTIVITY#:49440 ACTIVITYSCOPE: TheWaterFundisaself-sustainingcityutilityfund.Thewaterdepartmentmanagesthewater utility,providingacontinuoussupplyofhigh-qualitywatertocustomersatareasonablecost.The watersystemismaintainedatproperpressurelevelsanditisbacteria-free.Further,metering equipmentismaintainedtoaccountforaccurateusageandbilling. OBJECTIVES: 1.ContinueaddGPSdatapointtoGISsystem. 2.Improvewellheadprotectionprogram. 3.Advanceinstallationofradioreadingdevicesonwatermeters. ISSUES: 1.Additionalstateandfederalregulations. 2.Agingwatercontrolsystem(SCADA). 3.Projectdemandsonstaff. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Watercustomers 3,969 3,969 3,968 3,983 4,023 Metersread 16,000 16,000 17,000 17,000 17,000 Metersreplaced280135200418250 Newmetersinstalled 9 2 4 20 40 Waterlocates 1,000 500 500 500 500 Gallonspumped(MG)715 660 650 618 630 Valvesmaintained 1/4city 1/4city 1/4city 1/4city 1/4city Hydrantsmaintained 1/4city 1/4city 1/4city 1/4city 1/4city Timesmainsflushed 2 2 2 2 2 Mains/wellsrebuilt 0 1 2 1 0 Watertowersinspections 2 2 2 2 2 Reservoirinspections 0 1 1 1 1 Watersamplestosent 175 250 250 250 250 Newservicesinspected 9 2 1 5 5 GPSwatersystem 1/8city 1/8city 1/8city 1/8city 1/8city Serviceshut-offs 100 100 100 100 100 176 BUDGETCOMMENTARY: TheWaterFund’smainsourceofrevenueisusercharges.In2013,watercustomeruserrateswill increaseby10%.Thisincreasewaspassedafteradoptionofthebudget.Therateincreasewillcover increasingoperatingcosts,debtserviceforsystemimprovements,andcapitaloutlays.TheStateof Minnesotarequireswatersystemstohaveatieredratestructure.Toencourageconservationsand meetthestatemandate,thecityhasestablishedusagetierswithhigherratesateachlevel.Capital outlaysinclude$75,000foranelectronicmonitoringsystemforwells,pumphousesandother facilities.Additionalcapitaloutlaysinclude$181,600forwatermainon7th Streetand$150,000for annualupgradestothedistributionsystem.Thepersonnelservicesbudgetincludesafullstep increasewithnocost-of-livingincreaseanda9%healthinsurancebenefitcostincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels.Operatingtransfersoutwillretire debtserviceforwatersystemimprovementsindebtservicefunds.Otheritemsremainat2012 budgetlevels. BUDGET: WATERFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits13,2287,8763203,7003,7003,7000.0% IntergovernmentalRevenues--------- ChargesforServices856,998826,321919,590921,8001,121,8001,121,80021.7% Fines&Forfeits--------- SpecialAssessments161,258160,317158,543150,000150,000150,0000.0% Miscellaneous114,825116,633255,600104,325104,32592,500-11.3% ContributedCapital--------- OperatingTransfers6,643-------- DebtProceeds--------- TOTALREVENUES1,152,952$1,111,147$1,334,053$1,179,825$1,379,825$1,368,000$15.9% EXPENDITURES PersonnelServices241,662$190,809$225,729$267,898$267,898$272,423$1.7% Supplies133,43984,971106,304163,900163,900111,950-31.7% OtherServices&Charges182,570343,750326,815219,773214,880210,551-4.2% CapitalOutlay59,151--225,000225,000512,900128.0% DebtService OperatingTransfers3,161-144,718-207,219413,500--- TOTALEXPENDITURES619,983$619,530$803,566$876,571$1,078,897$1,521,324$73.6% FUNDBALANCE-JANUARY12,355,411$2,888,380$3,379,997$3,910,484$3,910,484$4,211,412$ Excess(Deficiency)of RevenuesoverExpenditures532,969491,617530,487303,254300,928(153,324) FUNDBALANCE-DECEMBER312,888,380$3,379,997$3,910,484$4,213,738$4,211,412$4,058,088$ 177 SEWAGEFUND DEPARTMENT:PublicWorks SUPERVISOR:WaterSuperintendent FUND#:602 ACTIVITY#:49480 ACTIVITYSCOPE: TheSewageFundisaself-sustainingcityutilityfund.Thewaterdepartmentmanagesthesanitary sewersystemandaprivatevendorprovidestreatmentplantservices.Thesewagefundhastwo divisions:sanitaryseweroperationsandtreatmentplantoperations. OBJECTIVES: 1.ContinuetoaddGPSdatapointstoGISsystem. 2.Researchalternativewastedisposaloptions,includingcosts. 3.Advancelong-rangeplanningregardingplantcapacityandexpansion. 4.Monitorinfiltrationofgroundwaterintothesanitarysewersystem. ISSUES: 1.Treatmentplantisnearingcapacity. 2.Agingofcontrolsystem(SCADA)andotherassets. 3.Groundwaterinfiltration. 4.Costsoftreatmentalternatives. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Sewermainsmaintained 1/4city 1/4city 1/4city 1/4city 1/4city Liftstations 7 7 7 7 7 Sewermainlocates 300 300 300 300 300 GPSsewersystem 1/8city 1/8city 1/8city 1/8city Manholesmaintained 715 660 650 600 600 Newservicehookups 9 2 4 20 40 Sewerservicestelevised 1/8city 1/8city 1/8city 1/8city 1/8city Gallons(MG)wastetreated 420 425 425 718 425 178 BUDGETCOMMENTARY: TheSewageFund’smainsourceofrevenueisusercharges.In2013,sewagecustomeruserrateswill increaseby10%.Thisincreasewaspassedafteradoptionofthebudget.Therateincreasewillcover increasingoperatingcosts,debtserviceforsystemimprovements,andcapitaloutlays.Capitaloutlays for2013include$75,000foranelectronicmonitoringsystemforsewagefacilitiesand$6.1million forupgradestothesewagetreatmentplant.Additionalcapitaloutlaysinclude$89,200forsanitary sewermainon7th Streetand$150,000inannualupgradestothecollectionsystem.Thepersonnel servicesbudgetincludesafullstepincreasewithnocost-of-livingincreaseanda9%healthinsurance benefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels.After 2013operatingtransfersouttodebtservicefundsmaybeneededtoretiredebtserviceforsystem improvements.Otheritemsremainat2012budgetlevels. BUDGET: SEWAGEFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE Propertytaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices1,371,7911,470,5821,712,6841,620,5001,800,5001,800,50011.1% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous67,15895,764192,33881,26281,26281,2620.0% ContributedCapital-143,433------- OperatingTransfers--------- DebtProceeds1,4361,4361,436--6,100,000--- TOTALREVENUES1,440,385$1,711,215$1,906,458$1,701,762$1,881,762$7,981,762$369.0% EXPENDITURES PersonnelServices138,853$246,754$258,576$270,168$266,571$270,867$0.3% Supplies12,16030,51621,19426,45026,45026,8501.5% OtherServices&Charges820,466860,824892,7841,078,9461,061,686926,330-14.1% CapitalOutlay199,118144,868-350,000350,0006,689,200 1811.2% DebtService89,237121,905121,051-120,000120,000--- OperatingTransfers107,513(1,444)318,937------ TOTALEXPENDITURES1,367,347$1,403,423$1,612,542$1,725,564$1,824,707$8,033,247$365.5% FUNDBALANCE-JANUARY12,067,960$2,140,998$2,448,790$2,742,706$2,742,706$2,799,761$ Excess(Deficiency)of RevenuesoverExpenditures73,038307,792293,916(23,802)57,055(51,485) FUNDBALANCE-DECEMBER312,140,998$2,448,790$2,742,706$2,718,904$2,799,761$2,748,276$ 179 SANITARYSEWERDIVISION: Sanitaryseweroperationsencompasstheoperationandmaintenanceofthesanitarysewersystem, whichconsistsofthesewermainsandliftstationsthattransportwastetothesewagetreatment plant(orWWTP). BUDGET: SEWAGEFUND200920102011201220122013% TREATMENTPLANTACTUALACTUALACTUAL BUDGET PROJECTED BUDGETCHANGE PersonnelServices2,861$1,235$83$1,224$1,224$1,225$0.0% Supplies5412,339562502502500.0% OtherServices&Charges762,346816,985856,537902,852902,852871,800-3.4% CapitalOutlay69,34631,905-125,000125,0006,375,0005000.0% DebtService OperatingTransfers--------- TOTALEXPENDITURES834,607$862,464$856,676$1,029,326$1,029,326$7,248,275$604.2% SEWAGETREATMENTPLANT(WWTP)DIVISION: SewageTreatmentPlant(orWastewatertreatmentplant)activityprovidesfortheoperationofthe facilitythatcollectsandtreatsallsewagefromthecity'ssanitarysewersystem.Thesewage treatmentplantisownedbythecity,buttheoperationsarecontractedouttoaprivatecompany. The2013budgetforcontractedplantserviceis$796,000. BUDGET: SEWAGEFUND200920102011201220122013% SEWEROPERATIONSACTUALACTUALACTUAL BUDGET PROJECTED BUDGETCHANGE PersonnelServices135,992$245,519$258,493$268,944$265,347$269,642$0.3% Supplies12,10618,17721,13826,20026,20026,6001.5% OtherServices&Charges58,12043,83936,247176,094158,83454,530-69.0% CapitalOutlay129,772112,963-225,000225,000314,20039.6% DebtService89,237121,905121,051-120,000120,000 OperatingTransfers107,513(1,444)318,937------ TOTALEXPENDITURES532,740$540,959$755,866$696,238$795,381$784,972$12.7% 180 LIQUORFUND DEPARTMENT:LiquorFund SUPERVISOR:LiquorStoreManager/FinanceDirector FUND#:609 ACTIVITY#:49750 ACTIVITYSCOPE: TheLiquorFundprovidescustomerswiththeopportunitytopurchasealcoholandotherrelated products.Profitsfromstoreoperationsareusedtosupportothercityfundsandactivities. OBJECTIVES: 1.Improveproductselection. 2.Enhancealcoholtrainingprogramforallliquorstoreemployees. 3.Increasestoreattractivenessthroughcustomerfocusedimprovements. 4.Growcustomerbaseandsalesbyaggressivelymarketingthestore. ISSUES: 1.Increased“requeststobuy”andsafetyissuesregardingminors. 2.Competitivepricing. 3.Staffturnover. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Operatingrevenue 1,042,192$1,201,927$1,073,096$959,750$1,000,000$ Winetastingticketssold 447 309 440 440 440 Beertastingticketssold 202 125 220 220 220 BUDGETCOMMENTARY: Hi-WayLiquorshascontinuedtobeaself-supportingcityenterprisefund,withprofitsdirected towardspecialprojects.Consequently,thishelpkeeppropertytaxeslower.Revenuesaregenerated bysaleofalcoholicbeveragesandmerchandiserelatedtotheliquorindustry.In2013,theLiquor Fundisslatedtoprovide$220,000totheFiberOpticsFund.Capitaloutlaysfor2013include replacementofthecheckoutarea.In2012,theLiquorFundtransferredoutmoneytoreduce interfundloanbalancesinotherfunds. 181 BUDGET: LIQUORFUND200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE SaleofGoods4,352,570$4,477,651$4,653,385$4,418,500$4,461,500$4,461,500$1.0% Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous76,88899,139203,04886,34850,00050,000-42.1% ContributedCapital--------- OperatingTransfers-20,065------- DebtProceeds--------- TOTALREVENUES4,429,458$4,596,855$4,856,433$4,504,848$4,511,500$4,511,500$0.1% EXPENDITURES PersonnelServices417,190$408,092$416,160$448,804$448,804$456,489$1.7% Supplies3,301,2093,286,8673,486,6523,455,6503,455,6503,512,9001.7% OtherServices&Charges218,189200,468193,693212,583212,583215,0171.1% CapitalOutlay-33,76837,78283,00083,00045,000-45.8% DebtService OperatingTransfers150,000266,000250,000950,0003,500,000220,000-76.8% TOTALEXPENDITURES4,086,588$4,195,195$4,384,287$5,150,037$7,700,037$4,449,406$-13.6% FUNDBALANCE-JANUARY12,354,200$2,697,070$3,098,730$3,570,876$3,570,876$382,339$ Excess(Deficiency)of RevenuesoverExpenditures342,870401,660472,146(645,189)(3,188,537)62,094$ FUNDBALANCE-DECEMBER312,697,070$3,098,730$3,570,876$2,925,687$382,339$444,433$ 182 CEMETERYFUND DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:651 ACTIVITY#:49010 ACTIVITYSCOPE: TheCemeteryFundsustainsitselfwithrevenuesfromplotsalesandfromservices,suchas excavations,stakingformonuments,memorialprograms,andperpetualcare.Thecitymaintainsthe cemeteryandassistscustomers/visitorswithmemorialsandperpetualcare. OBJECTIVES: 1.Servethepublicinacourteous,professionalmanner. 2.Maintaincemeterygroundsandgravemarkers. ISSUES: 1.Increasingmaintenancecosts. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Dataunderdevelopment BUDGETCOMMENTARY: Therearenosubstantialchangestoeitherrevenuesorexpendituresfor2013. 183 BUDGET: RIVERSIDECEMETERY200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices19,9958,62022,39024,80024,80024,8000.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous1,2919861,8218088088080.0% ContributedCapital--------- OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES21,286$9,606$24,211$25,608$25,608$25,608$0.0% EXPENDITURES PersonnelServices3,914$3,090$6,845$3,261$3,261$4,068$24.7% Supplies52202237757757750.0% OtherServices&Charges20,12619,93118,54520,73520,73521,2352.4% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES24,092$23,223$25,413$24,771$24,771$26,078$5.3% FUNDBALANCE-JANUARY138,901$36,095$22,478$21,276$21,276$22,113$ Excess(Deficiency)of RevenuesoverExpenditures(2,806)(13,617)(1,202)837837(470) FUNDBALANCE-DECEMBER3136,095$22,478$21,276$22,113$22,113$21,643$ 184 FIBEROPTICSFUND DEPARTMENT:FiberOpticsFund SUPERVISOR:CityAdministrator FUND#:655 ACTIVITY#:49871 ACTIVITYSCOPE: TheFiberOpticsFundwilleventuallybeaself-sustainingenterprisefund.FiberOpticsdelivershigh speedinternet,phoneandcabletelevisionservicestocustomerswithinthecity.Residentialand commercialcustomerscansubscribetoanyoftheservicesindividuallyoraspartofapackage. OBJECTIVES: 1.Offeravarietyofinternetspeedsandcablepackagestocustomers. ISSUES: 1.Continuetogrowcustomerbasetogeneratesufficientrevenuestocovercosts. 2.Variouslegalaspectsofoperatingatelecommunicationbusiness. MEASURABLEWORKLOADDATA: Measurement 2009 2010 2011 2012 2013 Internetsubscibers 503 1,011 1,634 1,600 1,600 Phonesubscribers 323 562 974 970 970 CableTVsubscribers 415 758 1,302 1,300 1,300 BUDGETCOMMENTARY: TheFiberOpticsFundbeganoperationsin2009andconstructionofthefiberopticnetworkwas completedin2010.Revenuescomefromchargestosubscribersandexpendituresareincurredasa resultofoperatingthesystemandnewcustomerserviceinstallations.Thecityhasdefaultedonthe revenuebondsusedtofinanceconstructionofthesystem.Consequently,nofuturedebtserviceis planned.In2012,thecitytransferred$4,450,000tothefund,reducinganinterfundloanbalance. Additionally,theLiquorFundwillprovide$220,000towardsFiberOpticsoperationsin2013. 185 BUDGET: FIBEROPTICS200920102011201220122013% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues-8,069------- ChargesforServices-434,0461,593,7792,648,4591,620,0001,620,000-38.8% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous5,17855,6741,413,697(38,431)---100.0% ContributedCapital--------- OperatingTransfers3,161---4,450,000220,000--- DebtProceeds5,709,23711,765,9841,947,891------ TOTALREVENUES5,717,576$12,263,773$4,955,367$2,610,028$6,070,000$1,840,000$-29.5% EXPENDITURES PersonnelServices127,214$488,830$666,974$587,156$585,155$573,674$-2.3% Supplies215,5331,267,507697,039314,496314,496293,160-6.8% OtherServices&Charges1,121,3132,137,6092,428,7862,214,123920,685912,666-58.8% CapitalOutlay4,955,0504,215,41090,8091,022,960122,00057,000-94.4% DebtService1,928,0861,814,7071,818,8691,768,337803,000--100.0% OperatingTransfers26310,03210,032------ TOTALEXPENDITURES8,347,459$9,934,095$5,712,509$5,907,072$2,745,336$1,836,500$-68.9% FUNDBALANCE-JANUARY1(2,267,292)$(4,897,175)$(2,567,497)$(3,324,639)$(3,324,639)$25$ Excess(Deficiency)of RevenuesoverExpenditures(2,629,883)2,329,678(757,142)(3,297,044)3,324,6643,500 FUNDBALANCE-DECEMBER31(4,897,175)$(2,567,497)$(3,324,639)$(6,621,683)$25$3,525$ 186 CAPITALIMPROVEMENTPROGRAM INTRODUCTION Thecapitalimprovementspresentedinthissectioncomprisethe2013-2017CapitalImprovements Program(CIP).TheMonticelloCIPintegratescapitalandmajornoncapitalexpendituresintoa comprehensiveplanforforecastingneededfutureresourcesforacquiringandmaintainingassets usedinmunicipaloperations.Byintegratingmajornoncapitalexpenditures,suchasmaintenance itemsorassetpurchasesnotmeetingspecificdollarthresholds,thecitycanbetterplanandprepare forfuturefinancialchallenges. TheMonticellointegrativeCIPconsistsoffoursections:capitalimprovements,vehiclesand equipment(Garage),majorrepairandmaintenanceitems(FirstAidKit),andsmalltoolsand equipment(ToolBox). TheCapitalImprovementssectionprimarilydealswithprojectsthatcarryhighpricetags.Inthe simplestofterms,capitalimprovementsareexpansionsoforimprovementstothecity'sphysical structuresuchasbuildings,streets,sidewalks,parkingfacilities,openspace,andutilitysystems (infrastructure). TheGaragesectioncontainscapitaloutlaysforvehiclesandequipmentessentialtoaccomplishing work.Generally,theseassetshaveshorterusefullivesandmustbereplacedonregularlyscheduled basis. TheFirstAidKitsectionincludesnoncapitalrepairandmaintenanceexpendituresrelatedtothe preservationofexistingassets,suchaspaintingawatertank.Additionally,expendituresonprojects thatdonotmeetcertaincapitalizationthresholdsareconsideredrepairsandmaintenance. TheToolBoxsectioniscomprisedofmajornoncapitalsmalltoolandequipmentpurchases.For example,thepurchaseofmultiplesimilaritemsthatindividuallydonotexceedthecapitalization thresholdwouldbeincludedinthissection. Q&A WHATISACAPITALIMPROVEMENTPROGRAM? Acapitalimprovementprogramisafiveyearplanfortheevaluationofthecity'sfacility,equipment andinfrastructureneeds.Itservesasaguideforconstruction,developmentandmaintenanceofthe city'sinfrastructureassets--aswellasotherlessexpensiveassets--inthemostcostefficientmanner possible.Itistheresultofsystematicreviewofeachprojectasitrelatestothecitycouncilgoalsand theestablishedpriorityscheme,tomaximizetheuseofallfinancialresources. Whiletheprogramservesasalongrangeplan,itisreviewedannuallyandrevisedbasedoncurrent circumstancesandopportunities.Prioritiesmaybechangedduetograntopportunitiesor 187 circumstancesthatcausedamorerapiddeteriorationofanassetresultinginaliabilityissue.Projects mayberevisedforsignificantcostingvariances. WHATARETHEOBJECTIVESOFACAPITALIMPROVEMENTPROGRAM? ·Toforecastpublicfacilitiesandimprovementsthatwillbeneededinthenearfuture. ·Toanticipateandprojectfinancingneedsinordertomaximizeavailablefederal,state,andcounty funds. ·Topromotesoundfinancialplanninginordertoenhanceandprotectfuturebondratingsand bondingcapacity. ·Tofocusattentiononandassistintheimplementationofestablishedcitycouncilobjectivesgoalsas outlinedinthe“PurposeandMission”. ·Toserveasaguideforlocalofficialsinmakingbudgetarydecisions. ·Tobalancetheneedsofnewdevelopmentwithexistingdevelopment. ·TopromoteandenhancetheeconomicdevelopmentofthecityofMonticello. ·Tostrikeabalancebetweenneededpublicimprovementsandthepresentfinancialcapabilityofthe citytoprovidefortheseimprovements. ·Toprovideanopportunityforcitizensandinterestgroupstovoiceopinionsondevelopmentofcity facilitiesandinfrastructure. ·Toprovideforimprovementsinatimelyandsystematicmanner. Changeshavebeenmadetoimprovethereliabilityofthecapitalimprovementprojectestimatesand thefocusofthefunding.Previouslythefundingeffortwasfocusedprimarilyonthebudgetyear.The newprocessisintendedtochangethatfocustofundingoverfiveyears.Thiswillenabledecision makerstoidentifyopportunitycostsofshiftingpriorities.Itcreatesabetterunderstandingofthe balancingactthatisrequiredtoallocatescarceresourcestothecapitalimprovementeffort. WHATISTHECAPITALIMPROVEMENTPROGRAMDEVELOPMENTPROCESS? AssignProjectTitles ·Makethetitledescriptiveofthework. ·TIP:Titletheprojectbasedontheproblemtobesolvedatalocation,ratherthantitlingbasedon thesolution. ·Groupprojectsinameaningfulwayforyourdepartment.AprojecttitleofBoomerang Improvementswon’tworkifitincludeseverythingfromthekitchensinkreplacementtothecart pathoverlay.Itisajudgmentdecision. FormulateProjectDescriptions ·Includethetargetactivitiestobecompletedeachyearontheproject.Thisshouldbeabrief statementoftheworkthatwillbeperformedanditslocation. 188 FormulateProjectCostEstimates ·Thecostsofeachprojectarebrokendownintoanyofthefollowingcategories: LandAcquisition Planning/Design/Construction Vehicles/Equipment/Furnishing AssignPriorities ·Priorities:requiredonallprojectsbasedonthefollowingcategories: PriorityI:Imperative(MUST-DO)-Projectsthatcannotreasonablybepostponedinordertoavoid harmfulorotherwiseundesirableconsequences. _Correctsaconditiondangeroustopublichealthorsafety _Satisfiesalegalobligation(law,regulation,courtorder,contract) _Alleviatesanemergencyservicedisruptionordeficiency _Preventsirreparabledamagetoavaluablepublicfacility PriorityII:Essential(SHOULD-DO)-Projectsthataddressclearlydemonstratedneedsorobjectives. _Rehabilitatesorreplacesanobsoletepublicfacilityorattachmentthereto _Stimulateseconomicgrowthandprivatecapitalinvestment _Reducesfutureoperatingandmaintenancecosts _LeveragesavailableStateorFederalfunding PriorityIII:Important(COULD-DO)-Projectsthatbenefitthecommunitybutmaybedelayedwithout detrimentaleffectstobasicservices. _Providesaneworexpandedlevelofservice _Promotesintergovernmentalcooperation _Reducesenergyconsumption _Enhancesculturalornaturalresources DocumentProjectJustifications Thefollowingthingsshouldbeconsidered: ·Reasontheprojectisnecessary ·Relatedprojects(timingissues) ·Coordinationeffortsrequiredwithotheragencies(timingissues) ·Mandatesanddeadlinesforcompliance ·ServiceImpact(numberofparticipantsimpacted) ·Newfeesthatcouldbegeneratedasaresultofthecompletionoftheproject(communitycenter- usagefees,programfees) ·Communitygoalreferences(refertoyourbudgetdocument) ·Safetyrequirements. DocumentOperatingImpact Thisisarequiredfield;projectsarenotacceptedwithoutit.Recordthecostsintheyeartheywill initiallyoccur.Itwillbeassumedthatthecostcontinuesfromthatpointon,unlessinformationis providedotherwise.Thefollowingpossibilitiesexist: 189 ·Maintenanceprojectthatdoesn’trequireanymorethanisalreadyinthebudgetformaintenance. ·Maintenanceprojectthatreplacesexistingitemswithamorecosteffectivematerialordevicethat wouldresultinaslightsavingsinoperatingdollars.Examples:moreenergyefficientHVACunit resultinginanelectricitysavings. ·Newprojectwillalwayshavesomekindofoperatingimpact. NoteUnfundedProjects ·Allprojectsnotfundedareplacedonanunfundedlist. Presentproducttothecitycouncilforreviewandfinalconsideration ·Five-yearfundedcapitalimprovements ·Rankedlistofunfundedneeds. HOWDOESTHECAPITALIMPROVEMENTPROGRAMIMPACTTHEOPERATINGBUDGET? Allcapitalimprovementprojectsarerequiredtoshowtheoperatingbudgetimpactatthetimethe projectsaresubmittedforconsiderationintheCapitalImprovementProgram.Thisincludesthe numberoffulltimeequivalentpositionsthatwouldbeneededorcouldbeeliminatedandthecostor savingsforsalaries/benefits,supplies/services,andequipment.Itwouldnotbeprudenttomake fundingdecisionsinfavorofaprojectthecitycouldnotaffordtomaintain,staff,orprovide equipmentfor. Capitalimprovementscanimpactthebudgetbyincreasingordecreasingrevenuesandexpenditures. Revenuescouldbeincreasediftheimprovementattractsnewbusinesses(buildingpermits,salestax, andpropertytax).Theimprovementcouldalsoincreaseexpenditures.Perhapsanexpansion requiresnewemployees,additionalmaintenanceservices,oradditionalutilitycosts.Constructionof anewstreetmayrequireadditionalcostsforpolicepatrolservices,snowandiceremoval,orstreet lightutilitycosts.Perhapsnewtechnologycouldmaketheoperationofaplantmoreefficient resultinginareductioninpowercosts,utilitycosts,andpersonnelcosts(reductioninovertimeor man-hours). Manyprojectsareassociatedwithpreventionoffutureexcessivecoststhataredifficulttomeasure. Thecostofthemaintenanceshouldnotexceedthebenefitoftheasset.Theprojectsmayhave maintenancecosts,buttheexistingmaintenancebudgetsaresufficient.Thepriorityforavailable capitalprojectfundshasbeenmaintenanceofexistingfacilitiesandinfrastructure.Mostof Monticello’sprojectsfallintothiscategory. 190 HOWISCITIZENINPUTINCORPORATEDINTHECIPDEVELOPMENTPROCESS? Thecitizensareinvolvedinthecapitalimprovementsplanthroughparticipationatcouncilmeetings, andthroughcitizenboards,commissions,andparticipationinpublicmeetings,worksessionsand publichearings. ParticipationinCitizenBoardsandCommissions Severaldisciplineswithinthecityhaveacitizenboardorcommissionthathelpstoidentifyand prioritizeneedswithintheirscopeofinterest.Theseprioritiesarereflectedinthedepartmenthead numericrankingwhentheprojectisinitiallysubmittedforconsideration.Thecitizenboardsand commissionsareparticularlyinfluentialwithregardtotheadditionofaprojecttotheplanandthe priorityithaswithinthescopeofneedsforthecommunity. ParticipationinPublicMeetings Eachyearinthespring,aworkshopisheldtoinformthecitycouncilandallinterestedcitizensabout theproposedbudgetfortheyear.Asessionwithinthisworkshopisdevotedtocapital improvements.Sinceannualappropriationsarerequiredbystatute,onerequiredpublichearingis heldinconjunctionwiththeoperatingbudgeteachyear.Capitalimprovementstypicallyrepresent 20%ofthetotalbudgetandareconsideredcarefully. Beyondparticipationinboardsandpublicmeetings,thecitymakesaconsiderableefforttoinform thecitizensthroughvariouspublications,newsreleases,andthewebsite. HOWISTHECAPITALIMPROVEMENTPROGRAMFORMULATED? ThefollowingtimelineisaspecificlistingofthestepsusedtodeveloptheCapitalImprovementPlan: June:Thefinancedepartmentdistributes“CIPBudgetRequestInstructions”alongwithprioryear submissions. December:Existingprojectsrollforwardoneyear.Thereisalsodialogueremindingdepartments aboutthegeneralphilosophiesmentionedearlierinthisdiscussion.Eachprojectisevaluatedbythe departmenthead.NewprojectsarethensubmittedtotheFinanceDepartmentandenteredintothe databasealongwithupdatesorchangestoexistingprojects. April:Thebudgetstafffinalizestheplanbyshiftingfundingprioritiesasnecessaryandincorporating newprojects,particularlyinyearfive.Thecityadministratordeterminestheoverallbudget recommendation. October:Worksessionsareheldtoconsiderbudgetissues(foroperatingandforcapital improvements). December:Thefirstandsecondpublichearingsareheld,andthebudgetisappropriated. 191 HOWISTHECAPITALIMPROVEMENTPROGRAMFINANCED? Inanalyzingthefinancialviabilityofthecapitalimprovementsinthe2013-2017CIPthecityhasthree basicchoicesformethodsoffinancing:pay-as-you-go,jointpoweragreementdevelopment authoritycapitalleasing,anddebtfinancing.Thefollowingsourcesproviderevenueforthethree financingmethods. GeneralFundrevenues,suchassalestaxes,localgovernmentaid,andservicechargesusecurrent revenuestofinancecapitaloutlays.Annually,theGeneralFundtransfersaportionofthe5th centto capitalprojectfundsforavarietyofcapitalprojects,whichmayincludeotherfundingsources. Internalservicefundswillbeestablishedinthefuturetoaccumulateresourcesforregularlyplanned equipmentpurchasesthroughrentalchargestovariousdivisionswithinbenefittingfunds.Thiswill reducetheimpactoflargeequipmentpurchasesonannualdivisionalexpendituresbyessentially amortizingthecostofsuchequipmenttothedivisionthroughrentalcharges.Therentalchargealso includesasmallinflationfactortoprovideforthefuturereplacementofthatitem.Thisfundwill replacetheCapitalOutlayRevolvingFund.Similarly,ahybridoftheaforementionedfundwillbe establishedforITservices,whichwillalsoincludeequipmentpurchases. Enterprisefundrevenues,whicharederivedfromusercharges,areusedtofinancecapital improvementsandequipmentnecessaryfordeliveringaspecificservice.Additionally,accumulated revenuesinenterprisefundscanbetransferredtootherfundstoprovidefinancingforcapitalasset acquisitions. Debtissuanceisusedtofinancelargecapitalimprovements.Generalobligationimprovementbonds andgeneralobligationrevenuebondsareusedtofinanceimprovementstothecity’sinfrastructure. ManyoftheitemsidentifyingtheCapitalProjectFundasfundingsourcewillneedsomelevelofdebt issuancetocometofruition. Federalandstategrantsprovidefundingforvariouscapitalimprovementprojects.Currently,the citywilldedicateover$600,000ofitsstate-aidstreetfundstowardtheextensionof7th Street.Other sourcescomefromgrants,donations,reserves,andothergovernmentalunitsthatshareboundaries. 192 ItemslistedonthefollowingpagesaretypicallylabeledwithprefixesVEQ-forvehiclesand equipment,MNC-(majornon-capital)repairs&maintenance,STE-forsmalltoolsandequipment.All otherlabelprefixesrepresentcapitalimprovements.Thebelowgraphandtableprovidesa breakdownofexpenditureswithintheCIP: $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 20132014201520162017 M illions Expenditures-IntegratedCIPforFY2013-2017 CapitalImprovements Garage(CapitalEquipment)FirstAidKit(RepairsandMaintenance)ToolBox(SmallToolsandEquipment) ExpenditureCategory20132014201520162017 CapitalImprovements9,091,600$11,095,500$10,938,500$7,277,500$13,546,000$ Garage (CapitalEquipment)1,207,750576,5001,959,100615,000355,600 FirstAidKit (RepairsandMaintenance)73,000168,50060,00065,00055,000 ToolBox (SmallToolsandEquipment)140,10076,50076,10072,80058,600 10,512,450$11,917,000$13,033,700$8,030,300$14,015,200$ 193 CapitalImprovementPlan CityofMonticello,Minnesota FUNDINGSOURCESUMMARY 2013 thru 2017 TotalSource20132014201520162017 CapitalEquipmentFund 3,579,850912,750569,0001,428,100590,00080,000 CapitalProjectFund 24,418,000286,0007,702,0007,125,0004,205,0005,100,000 CemeteryFund 15,0005,0005,0005,000 CommunityCenterFund 1,563,000112,500196,500145,0001,064,00045,000 DebtProceeds 6,100,0006,100,000 DMVFund 24,5004,50020,000 EDAFund 2,076,000475,0001,000,000601,000 FederalAid 1,200,0001,117,50082,500 GeneralFund 255,50059,50054,50051,50045,00045,000 ITServicesFund 160,60046,60030,00031,60028,80023,600 MunicipalLiquorFund 1,670,00045,000100,00025,0001,500,000 Parks&PathwaysFund 2,155,000530,000525,000525,000525,00050,000 SewageFund 3,714,800439,2002,150,000550,000150,000425,600 StateAid 1,133,500683,500450,000 StormwaterAccessFund 1,400,00040,000140,000140,0001,040,00040,000 StreetConstructionFund 240,00070,00070,00050,00050,000 StreetLightingFund 816,300366,300225,00075,00075,00075,000 WaterFund 6,986,600406,600150,000300,000150,0005,980,000 10,512,45011,917,00013,033,7008,030,30014,015,200 57,508,650GRANDTOTAL ProducedUsingthePlan-ItCapitalPlanningSoftware 194 CapitalImprovementPlan CityofMonticello,Minnesota PROJECTS&FUNDINGSOURCESBYDEPARTMENT 20132017thru Total20132014201520162017DepartmentProject#Priority CommunityCenter 1,563,000112,500196,500145,0001,064,00045,000CommunityCenterFund 1,563,000112,500196,500145,0001,064,00045,000CommunityCenterTotal MCC-13-00135,00025,00010,000MovableWalls3 MCC-13-0021,000,0001,000,000SplashPark3 MCC-13-0047,5007,500FrontCounterImprovements3 MNC-13-00675,00015,00015,00015,00015,00015,000Carpet3 MNC-13-00710,00010,000WoodFloor-MississippiRoom3 MNC-13-00830,00030,000ReglazeWaterSlide2 MNC-13-00955,00055,000GymFloorReplacement2 MNC-13-01030,00010,00010,00010,000VanityandPartitionReplacement3 MNC-13-0123,5003,500WeightRoomMirrors3 STE-13-013200,00080,00030,00030,00030,00030,000RecreationEquipment3 STE-13-0143,0003,000TableCovers3 STE-13-01510,0005,0005,000Tables3 STE-13-0167,0003,0004,000PatioFurniture3 VEQ-13-04512,00012,000Dishwasher2 VEQ-13-05810,00010,000DiamondBrite/Spas3 VEQ-13-05940,00040,000UpgradeIndoorPlayStructure3 VEQ-13-06035,00035,000PoolToy3 1,563,000112,500196,500145,0001,064,00045,000CommunityCenterTotal CommunityDevelopment 180,00030,00090,00060,000CapitalProjectFund 1,621,00020,0001,000,000601,000EDAFund CDE-13-00160,00030,00030,000CommunityIdentificationSigns3 CDE-13-002120,00060,00060,000ElectronicMessagingSigns3 CDE-13-00320,00020,000BusinessParkMonument3 CDE-13-0041,601,0001,000,000601,000IndustrialLandPurchase3 1,801,00050,00090,0001,060,000601,000CommunityDevelopmentTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 195 Total20132014201520162017DepartmentProject#Priority 1,801,00050,00090,0001,060,000601,000CommunityDevelopmentTotal DMV-DeputyRegistrar 24,5004,50020,000DMVFund 24,5004,50020,000DMV-DeputyRegistrarTotal STE-13-0173,0003,000CashRegisterSystem2 STE-13-0181,5001,500SecurityCameras2 VEQ-13-04720,00020,000DMVVehicle2 24,5004,50020,000DMV-DeputyRegistrarTotal Fire&Rescue 1,200,0001,000,000200,000CapitalEquipmentFund 3,250,000250,0003,000,000CapitalProjectFund 25,0005,0005,0005,0005,0005,000GeneralFund 4,475,0005,0005,0001,255,000205,0003,005,000Fire&RescueTotal FRD-13-001250,000250,000FireStationAddition2 FRD-13-0023,000,0003,000,000NewFireStation2 STE-13-00625,0005,0005,0005,0005,0005,000SCBAPacks2 VEQ-13-0061,000,0001,000,000FireLadderTruck2 VEQ-13-007200,000200,000FirePumperTruck2 4,475,0005,0005,0001,255,000205,0003,005,000Fire&RescueTotal GeneralGovernment 22,50022,500CapitalEquipmentFund 22,50022,500GeneralGovernmentTotal VEQ-13-00822,50022,500Vehicle-BuildingInspections2 22,50022,500GeneralGovernmentTotal ITServices STE-13-00169,60015,60012,00015,60010,80015,600PersonalComputers2 STE-13-0024,0004,000LedgerSozeColorScanner2 STE-13-0036,0002,0004,000Multi-serverComponentUpgrade2 STE-13-00416,0008,0008,000SecurityCameraSystem2 STE-13-00515,0003,0003,0003,0003,0003,000Laptops2 ProducedUsingthePlan-ItCapitalPlanningSoftware 196 Total20132014201520162017DepartmentProject#Priority 65,00065,000CapitalEquipmentFund 160,60046,60030,00031,60028,80023,600ITServicesFund 225,600111,60030,00031,60028,80023,600ITServicesTotal STE-13-00735,00015,0005,0005,0005,0005,000GISHardwareandSoftware2 STE-13-0082,0002,000PavementManagementSoftware2 STE-13-0095,0005,000HydroCADDrainageDesignSoftware2 STE-13-0108,0008,000SynchroStudio7TrafficSoftware2 VEQ-13-00565,00065,000LaserficheSystem2 225,600111,60030,00031,60028,80023,600ITServicesTotal MunicipalLiquor 1,670,00045,000100,00025,0001,500,000MunicipalLiquorFund 1,670,00045,000100,00025,0001,500,000MunicipalLiquorTotal LIQ-13-00145,00045,000CountersandCheckout2 LIQ-13-00275,00075,000ParkingLotImprovements2 LIQ-13-0031,500,0001,500,000LiquorStore-#23 VEQ-13-04650,00025,00025,000LiquorStoreCoolers2 1,670,00045,000100,00025,0001,500,000MunicipalLiquorTotal PublicWorks PWK-13-002200,000200,000PWFacilityLandAcquisition3 STE-13-01110,5004,0006,500Generator2 VEQ-13-00917,00017,000PublicWorksStaffCar2 VEQ-13-01012,00012,000SpeedTrailer2 VEQ-13-01192,50092,500Mid-sizeTractor/Loader2 VEQ-13-01210,00010,000PaintStripingSprayer2 VEQ-13-013135,00070,00065,000One-TonTruck2 VEQ-13-01456,00026,00030,000Truck-Pickup4X42 VEQ-13-015115,000115,000BucketTruck2 VEQ-13-016105,000105,000BlacktopPaver2 VEQ-13-01720,00020,000BlacktopPlainer2 VEQ-13-01821,00021,000Router2 VEQ-13-01920,00020,000ConcreteSaw2 VEQ-13-02030,00030,000MiniTackTrailer2 VEQ-13-02195,00095,000Backhoe2 VEQ-13-022195,000195,000PlowTruck2 VEQ-13-02365,00065,000One-TonTruckandPlow2 ProducedUsingthePlan-ItCapitalPlanningSoftware 197 Total20132014201520162017DepartmentProject#Priority 1,519,600596,500250,000283,100390,000CapitalEquipmentFund 230,000230,000CapitalProjectFund 10,5004,0006,500GeneralFund 1,760,100600,500480,000289,600390,000PublicWorksTotal VEQ-13-024260,000260,000HookDumpTruck2 VEQ-13-025141,100141,100SnowGoSnowBlower2 VEQ-13-02660,00060,000SkidSteereLoader2 VEQ-13-02735,00035,000SignLabSystem2 VEQ-13-02820,00020,000PaverTrailer2 VEQ-13-02920,00020,000AirCompressor2 VEQ-13-03025,00025,000BlacktopRoller2 1,760,100600,500480,000289,600390,000PublicWorksTotal Recreation&Culture MNC-13-0024,5004,500IrrigationSystem-GrovelandPark3 MNC-13-0033,5003,500EastBridgeParkLandscaping3 MNC-13-00415,0005,0005,0005,000CemeteryStoneRestoration3 MNC-13-0055,0005,000PathwaySignage3 PAR-13-00160,00060,000HuntersCrossingParkDevelopment3 PAR-13-00260,00060,000FeatherstoneParkDevelopment3 PAR-13-00310,00010,000SunsetPondsShelter3 PAR-13-00480,00080,000PioneerPark-BandShell3 PAR-13-00515,5005,50010,000PlaygroundEquipment2 PAR-13-00680,50015,50065,000MontiHillParkDevelopment2 PAR-13-007250,00050,00050,00050,00050,00050,000PathwayImprovemnents2 PAR-13-0081,900,000475,000475,000475,000475,000BertramLakesLandAcquisition2 PAR-13-00970,00070,000WestandEastBridgeParkLighting3 PAR-13-0105,0005,000BCOLImprovements3 PAR-13-0117,5007,500DugoutRoofs-XcelBallFields3 PAR-13-0122,000,0002,000,000BCOLBallFields3 PAR-13-013155,000155,000EllisonParkLogShelter3 PAR-13-01425,00025,000CSAH75PathwayLighting3 STE-13-0123,5003,500SodCutter2 VEQ-13-031115,00095,00020,000ParkMowers2 VEQ-13-032242,00075,00022,00065,00080,000Trucks2 VEQ-13-033110,000110,000MTTracklessSidewalkMachine2 VEQ-13-03400UtilityMule/SmallTruck2 VEQ-13-03535,00035,000BrushChipper2 VEQ-13-03666,00066,000BobcatToolCat2 ProducedUsingthePlan-ItCapitalPlanningSoftware 198 Total20132014201520162017DepartmentProject#Priority 709,250228,750255,500145,00080,000CapitalEquipmentFund 2,461,00021,00010,000275,000155,0002,000,000CapitalProjectFund 15,0005,0005,0005,000CemeteryFund 30,00020,5009,500GeneralFund 2,155,000530,000525,000525,000525,00050,000Parks&PathwaysFund 95,00070,00025,000StreetLightingFund 5,465,250875,250830,000950,000680,0002,130,000Recreation&CultureTotal VEQ-13-03722,50022,500CushmanTruckster2 VEQ-13-03835,00035,000Tractor2 VEQ-13-03935,00035,000Loader2 VEQ-13-0406,2506,250SkidLoaderTrailer2 VEQ-13-04125,00025,000ToroInfieldPro50402 VEQ-13-0426,0006,000PortableGazebo3 VEQ-13-04317,50017,500PathwaysTackTrailer3 5,465,250875,250830,000950,000680,0002,130,000Recreation&CultureTotal Stormwater\Drainage 1,400,00040,000140,000140,0001,040,00040,000StormwaterAccessFund 200,00050,00050,00050,00050,000StreetConstructionFund 1,600,00040,000190,000190,0001,090,00090,000Stormwater\DrainageTotal SWD-13-001200,00040,00040,00040,00040,00040,000StormwaterPondRestoration2 SWD-13-0021,000,0001,000,000StormwaterLiftstation(TH25Pond)2 SWD-13-003200,000100,000100,000StormWaterPondLining2 SWD-13-004200,00050,00050,00050,00050,000BoulevardDrainageTile2 1,600,00040,000190,000190,0001,090,00090,000Stormwater\DrainageTotal Streets MNC-13-001190,00030,00040,00040,00040,00040,000CityStreetSigns2 STR-13-001500,000500,000SchoolBlvd/CedarStreetSignalSystem2 STR-13-00290,00090,000ParkingLotReconstruction3 STR-13-00390,00070,00020,000BatteryBackup-TH25SignalSystems2 STR-13-004500,000500,000OverlayRuralOutlyingStreets2 STR-13-005350,000350,000E7thStreet/Hwy25Intersection3 STR-13-0066,000,0002,000,0003,000,0001,000,000FallonAvenueOverpass3 STR-13-0073,740,0003,550,000190,000StreetReconstruction-Area53 STR-13-008850,000850,000StreetReconstruction-Area63 ProducedUsingthePlan-ItCapitalPlanningSoftware 199 Total20132014201520162017DepartmentProject#Priority 63,50063,500CapitalEquipmentFund 18,297,000235,0007,372,0006,540,0004,050,000100,000CapitalProjectFund 455,000455,000EDAFund 1,200,0001,117,50082,500FederalAid 190,00030,00040,00040,00040,00040,000GeneralFund 89,20089,200SewageFund 1,133,500683,500450,000StateAid 40,00020,00020,000StreetConstructionFund 721,300296,300200,00075,00075,00075,000StreetLightingFund 181,600181,600WaterFund 22,371,1001,970,6007,695,5008,242,5004,247,500215,000StreetsTotal STR-13-009650,000550,000100,000StreetReconstruction-Area7B2 STR-13-010625,000200,000200,00075,00075,00075,000StreetLightImprovements2 STR-13-0113,500,0002,000,0001,500,000TH25TurnLaneImprovements2 STR-13-0121,000,0001,000,00095thStreetExtension2 STR-13-01340,00020,00020,000PedestrianCrossings-Highways2 STR-13-0142,162,000512,0001,567,50082,500TH25/CSAH75IntersectionImprovements2 STR-13-015350,000350,000HillsideFarmsStreetImprovements2 STR-13-01663,50063,500SpiritHillsTownhouseWearCourse2 STR-13-C011,670,6001,670,6007thStreetExtension2 22,371,1001,970,6007,695,5008,242,5004,247,500215,000StreetsTotal Utility-Sewage 6,100,0006,100,000DebtProceeds 3,625,600350,0002,150,000550,000150,000425,600SewageFund 9,725,6006,450,0002,150,000550,000150,000425,600Utility-SewageTotal UTS-13-0011,250,000150,000650,000150,000150,000150,000AnnnualSewageTrunkImprovements2 UTS-13-002275,600275,600Liftstation-MarvinRoad2 UTS-13-0031,500,0001,500,000WWTPInfluentWetwellandGritChamber2 UTS-13-0046,100,0006,100,000WWTPImprovements2 UTS-13-005100,000100,000SBRBlowerReplacement2 UTS-13-00625,00025,000ImproHeatPasturizationSystemRemoval3 VEQ-13-001400,000400,000SewerJetter2 VEQ-13-00475,00075,000SCADASystem-Sewage2 9,725,6006,450,0002,150,000550,000150,000425,600Utility-SewageTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 200 Total20132014201520162017DepartmentProject#Priority Utility-Water 6,805,000225,000150,000300,000150,0005,980,000WaterFund 6,805,000225,000150,000300,000150,0005,980,000Utility-WaterTotal UTW-13-001750,000150,000150,000150,000150,000150,000AnnualWaterSystemImprovements3 UTW-13-0024,500,0004,500,000WaterTreatmentFacility3 UTW-13-0031,200,0001,200,000Well#63 UTW-13-004126,000126,000Watermain-90thStreettoChelsea2 UTW-13-005130,000130,000BoosterStationUpgrade2 VEQ-13-00224,00024,000Truck-RegularCab4X4Replacement2 VEQ-13-00375,00075,000SCADASystem-Water2 6,805,000225,000150,000300,000150,0005,980,000Utility-WaterTotal 57,508,65010,512,45011,917,00013,033,7008,030,30014,015,200GrandTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 201 Thispageintentionallyleftblank 202 PROPERTYTAXBASICS Assessmentandclassification Thepropertytaxsystemisacontinuouscycle,butiteffectivelybeginswiththeestimationof property marketvalues bylocalassessors.Assessorsattempttodeterminetheapproximateselling priceofeachparcelofpropertybasedonthecurrentmarketconditions. Alongwiththemarketvaluedetermination,a propertyclass isascribedtoeachparcelofproperty basedontheuseoftheproperty.Forexample,propertythatisowner-occupiedasapersonal residenceisclassifiedasaresidentialhomestead.The“useclass”isimportantbecausethe Minnesotasystem,ineffect,assignsaweighttoeachclassofproperty.Generally,propertiesthatare associatedwithincomeproduction(e.g.commercialandindustrialproperties)haveahigher classificationweightthanotherproperties. Thepropertyclassificationsystemdefinesthe taxcapacity ofeachparcelasapercentageofeach parcel’smarketvalue.Forexample,a$75,000homewhichisclassifiedasaresidentialhomestead hasaclassrateof1.0percentandthereforehasataxcapacityof$75,000x.01or$750.(Asampleof theclassratesisincludedinthetableattheendofthisitem.) [parcelmarketvalue]*[classrate]=[parceltaxcapacity] Thenextstepincalculatingthetaxburdenforaparcelinvolvesthedeterminationofeachlocalunit ofgovernment’s propertytaxlevy.Thecity,county,schooldistrictandanyspecialpropertytaxing authoritiesmustestablishtheirlevybyDecember28oftheyearprecedingtheyearinwhichthelevy willbepaidbytaxpayers.Thepropertytaxlevyissetaftertheconsiderationofallotherrevenues includingstateaidssuchas LGA. [citybudget]-[allnon-propertytaxrevenues]=[citylevy] Localtaxrates Localgovernmentsdonotdirectlysetataxrate.Instead,thetaxrateisafunctionofthelevyandthe totaltaxbase.Tocomputethe localtaxrate,acountymustdeterminethetotaltaxcapacitytobe usedforspreadingthelevies.The totaltaxcapacity iscomputedbyfirstaggregatingthetax capacitiesofallparcelswithinthecity.Severaladjustmentstothistotalmustbemadebecausenot alltaxcapacityisavailableforgeneraltaxpurposes.Theresultofthiscalculationproducestaxable taxcapacity.Taxabletaxcapacityisusedtodeterminethelocaltaxrates. [citylevy]/[taxabletaxcapacity]=[citytaxrate] Parceltaxcalculations Thepropertytaxbillforeachparcelofpropertyisdeterminedbymultiplyingtheparcel’staxcapacity bythetotallocaltaxrate.Thetaxstatementforeachindividualparcelitemizesthetaxesforthe county,municipality,schooldistrict,andanyspecialtaxingauthorities. [parceltaxcapacity]*[totallocaltaxrate]=[taxcapacitytaxbill] 203 UsesTerms Classrates -Thepercentofmarketvaluesetbystatelawthatestablishestheproperty’staxcapacity subjecttothepropertytax.SeeTableAforasamplelistofclassrates. Localtaxrate -Therateusedtocomputetaxesforeachparcelofproperty.Localtaxrateis computedbydividingthecertifiedlevy(afterreductionforfiscaldisparitiesdistributionlevyand disparityreduction)bythetaxabletaxcapacity. Marketvalue -Anassessor’sestimateofwhatpropertywouldbeworthontheopenmarketifsold. ThemarketvalueissetonJanuary2oftheyearbeforetaxesarepayable. HomesteadMarketValueExclusion(HMVE)–Startingwithtaxespayablein2012,eligible homesteadswillpaypropertytaxesononlyaportionofthevalueoftheirhomes.Themaximum exclusion,40%ofvalue,occursathomevalueof$76,000andphasesoutashomevaluegrows Propertyclass -Theclassificationassignedtoeachparcelofpropertybasedontheuseofthe property.Forexample,owner-occupiedresidentialpropertyisclassifiedashomestead. Propertytaxlevy -Thetaximposedbyalocalunitofgovernment.Thetaxis establishedonoraround December28oftheyearprecedingtheyearthelevywillbepaidbytaxpayers. Taxcapacity -Thevaluationofpropertybasedonmarketvalueandstatutoryclassrates.The propertytaxforeachparcelisbasedonitstaxcapacity. Totaltaxcapacity -Theamountcomputedbyfirsttotalingthetaxcapacitiesofallparcelsofproperty withinacity.Adjustmentsforfiscaldisparities,taxincrementandaportionofthepowerlinevalue aremadetothistotalsincenotalltaxcapacityisavailableforgeneraltaxpurposes. Truth-in-Taxation -The“taxationandnotificationlaw”whichrequireslocalgovernmentstoset estimatedlevies,informtaxpayersabouttheimpacts,andannouncewhichoftheirregularly scheduledcouncilmeetingswillincludeadiscussionofthebudgetandlevy.Taxpayerinputistaken atthatmeeting. PropertyClass LocalTaxes Payable2012 StateTaxPayable 2012 ResidentialHomestead: 1st$500,0001 1.0%Nostatetax >$500,000 1.25 Non-homesteadResidential: Singleunit: 1st$500,0001 1.0>$500,000 1.25 Nostatetax 2-3unitbuildings 1.25 Market-rateApartments:1.25 Nostatetax Commercial/Industrial:Subjecttostate1st$150,0002 1.5 levy(commercial- >$150,000 2.0 industrialrate) SeasonalRecreational Subjecttostate1st$500,000 1.0 levy (seasonal- >$500,000 1.25 recreationalrate) 204 TRUTH-IN-TAXATION TNTSummaryChartforTaxesPayable2013 Date Action OnorBefore Sept.15 Atonemeeting,thecitycounciladoptstheproposedpropertytaxlevyand announcesthetimeandplaceofafuturecitycouncilmeetingatwhichthe budgetandlevywillbediscussedandpublicinputallowed,priortofinal budgetandlevydetermination.Thispublicinputmeetingmustoccurafter Nov.24andmuststartatorafter6p.m.Thetimeandplaceofthepublic inputmeetingmustbeincludedintheminutesbutnewspaperpublicationof theminutesisnotrequired. Onorbefore Sept.15 Citiesmustprovidethecountyauditorwiththefollowinginformation: Thetimeandplaceofthemeetingatwhichthebudgetandlevywillbe discussedandpublicinputallowed.(Again,meetingmustoccurafterNov.24 andmustnotstartbefore6p.m.) Aphonenumberthatcitytaxpayersmaycalliftheyhavequestions relatedtotheauditor’spropertytaxnotice;thisdoesnotrequirelistinga privatephonenumber. Anaddresswherecommentswillbereceivedbymail;thisdoesnot requirelistingaprivateaddress. Nov.11to Nov.23 Countyauditorpreparesandsendsparcelsspecificnotices. Nov.25to Dec.28 Citycouncilsholdmeetingtodiscussthebudgetandpropertytaxlevyand, beforeafinaldetermination,allowspublicinput. Onorbefore Dec.28 Citiesmustcertifyfinalpropertytaxlevytothecountyauditor. 205 MINNESOTASTATUTES DEBTLIMIT 475.53LIMITONNETDEBT Subdivision1.Terms. Forthepurposesofthischapter,thetermsdefinedinthissectionshallhavethemeaningsgiven them. Subd.2.Municipality. "Municipality"meansacityofanyclass,county,town,orschooldistrict. Subd.3.Obligation. "Obligation"meansanypromisetopayastatedamountofmoneyatafixedfuturedateorupon demandoftheobligee,regardlessofthesourceoffundstobeusedforitspayment,madeforthe purposeofincurringdebt,includingthepurchaseofpropertythroughaninstallmentpurchase contractoranyotherdeferredpaymentagreement,forwhichfundsarenotappropriatedinthe currentyear'sbudget. Subd.4.Netdebt. "Netdebt"meanstheamountremainingafterdeductingfromitsgrossdebttheamountofcurrent revenueswhichareapplicablewithinthecurrentfiscalyeartothepaymentofanydebtandthe aggregateoftheprincipalofthefollowing: (1)Obligationsissuedforimprovementswhicharepayablewhollyorpartlyfromtheproceedsof specialassessmentslevieduponpropertyspeciallybenefitedthereby,includingthosewhichare generalobligationsofthemunicipalityissuingthem,ifthemunicipalityisentitledtoreimbursement inwholeorinpartfromtheproceedsofthespecialassessments. (2)Warrantsorordershavingnodefiniteorfixedmaturity. (3)Obligationspayablewhollyfromtheincomefromrevenueproducingconveniences. (4)Obligationsissuedtocreateormaintainapermanentimprovementrevolvingfund. (5)Obligationsissuedfortheacquisition,andbettermentofpublicwaterworkssystems,andpublic lighting,heatingorpowersystems,andofanycombinationthereoforforanyotherpublic conveniencefromwhicharevenueisormaybederived. (6)Debtserviceloansandcapitalloansmadetoaschooldistrictundertheprovisionsofsections 126C.68and126C.69. (7)Amountofallmoneyandthefacevalueofallsecuritiesheldasadebtservicefundforthe extinguishmentofobligationsotherthanthosedeductibleunderthissubdivision. (8)Obligationstorepayloansmadeundersection216C.37. (9)Obligationstorepayloansmadefrommoneyreceivedfromlitigationorsettlementofalleged violationsoffederalpetroleumpricingregulations. 206 (10)Obligationsissuedtopaypensionfundorotherpostemploymentbenefitliabilitiesunder section475.52,subdivision6,oranycharterauthority. (11)Obligationsissuedtopayjudgmentsagainstthemunicipalityundersection475.52,subdivision 6,oranycharterauthority. (12)Allotherobligationswhichundertheprovisionsoflawauthorizingtheirissuancearenottobe includedincomputingthenetdebtofthemunicipality. CAPITALEQUIPMENT 412.301FINANCINGPURCHASEOFCERTAINEQUIPMENT. (a)Thecouncilmayissuecertificatesofindebtednessorcapitalnotessubjecttothecitydebtlimits topurchasecapitalequipment. (b)Forpurposesofthissection,"capitalequipment"means: (1)publicsafetyequipment,ambulanceandothermedicalequipment,roadconstructionand maintenanceequipment,andothercapitalequipment;and (2)computerhardwareandsoftware,whetherbundledwithmachineryorequipmentor unbundled. (c)Theequipmentorsoftwaremusthaveanexpectedusefullifeatleastaslongasthetermsofthe certificatesornotes. (d)Suchcertificatesornotesshallbepayableinnotmorethantenyearsandshallbeissuedonsuch termsandinsuchmannerasthecouncilmaydetermine. (e)Iftheamountofthecertificatesornotestobeissuedtofinanceanysuchpurchaseexceeds0.25 percentofthemarketvalueoftaxablepropertyinthecity,theyshallnotbeissuedforatleastten daysafterpublicationintheofficialnewspaperofacouncilresolutiondeterminingtoissuethem; andifbeforetheendofthattime,apetitionaskingforanelectiononthepropositionsignedby votersequaltotenpercentofthenumberofvotersatthelastregularmunicipalelectionisfiled withtheclerk,suchcertificatesornotesshallnotbeissueduntilthepropositionoftheirissuance hasbeenapprovedbyamajorityofthevotescastonthequestionataregularorspecialelection. (f)Ataxlevyshallbemadeforthepaymentoftheprincipalandinterestonsuchcertificatesor notes,inaccordancewithsection 475.61,asinthecaseofbonds. DEBTAUTHORIZATION 475.58OBLIGATIONS;ELECTIONSTODETERMINEISSUE. Subdivision1.Approvalbyelectors;exceptions. Obligationsauthorizedbylaworchartermaybeissuedbyanymunicipalityuponobtainingthe approvalofamajorityoftheelectorsvotingonthequestionofissuingtheobligations,butan electionshallnotberequiredtoauthorizeobligationsissued: (1)topayanyunpaidjudgmentagainstthemunicipality; (2)forrefundingobligations; 207 (3)foranimprovementorimprovementprogram,whichobligationispayablewhollyorpartlyfrom theproceedsofspecialassessmentslevieduponpropertyspeciallybenefitedbytheimprovement orbyanimprovementwithintheimprovementprogram,orfromtaxincrements,asdefinedin section 469.174,subdivision25,includingobligationswhicharethegeneralobligationsofthe municipality,ifthemunicipalityisentitledtoreimbursementinwholeorinpartfromtheproceeds ofsuchspecialassessmentsortaxincrementsandnotlessthan20percentofthecostofthe improvementortheimprovementprogramistobeassessedagainstbenefitedpropertyoristobe paidfromtheproceedsoffederalgrantfundsoracombinationthereof,orisestimatedtobe receivedfromtaxincrements; (4)payablewhollyfromtheincomeofrevenueproducingconveniences; (5)undertheprovisionsofahomerulecharterwhichpermitstheissuanceofobligationsofthe municipalitywithoutelection; (6)undertheprovisionsofalawwhichpermitstheissuanceofobligationsofamunicipalitywithout anelection; (7)tofundpensionorretirementfundliabilitiesofamunicipalitypursuanttosection 475.52, subdivision6; (8)underacapitalimprovementplanundersection 373.40; (9)undersections 469.1813 to 469.1815 (propertytaxabatementauthoritybonds),iftheproceeds ofthebondsarenotusedforapurposeprohibitedundersection 469.176,subdivision4g, paragraph(b); (10)tofundpostemploymentbenefitliabilitiespursuanttosection 475.52,subdivision6,ofa municipality,otherthanaschooldistrict,iftheliabilitiesarelimitedto: (i)satisfyingtherequirementsofsection 471.61,subdivision2b;and (ii)otherpostemploymentbenefits,whichthemunicipalitynolongerprovidestoemployeeshired afteradatebeforetheobligationsareissued;and (11)undersection 475.755. Subd.1a.Resubmissionlimitation. Iftheelectorsdonotapprovetheissuingofobligationsatanelectionrequiredbysubdivision1,the questionofauthorizingtheobligationsforthesamepurposeandinthesameamountmaynotbe submittedtotheelectorswithinaperiodof180daysfromthedatetheelectionwasheld.Ifthe questionofauthorizingtheobligationsforthesamepurposeandinthesameamountisnot approvedasecondtimeitmaynotbesubmittedtotheelectorswithinaperiodofoneyearafter thesecondelection. Subd.2.Funding,refunding. Anycounty,city,town,orschooldistrictwhoseoutstandinggrossdebt,includingallitemsreferred toinsection 475.51,subdivision4,exceedinamount1.62percentofitsmarketvaluemayissue bondsunderthissubdivisionforthepurposeoffundingorrefundingsuchindebtednessoranypart thereof.Alistoftheitemsofindebtednesstobefundedorrefundedshallbemadebytherecording officerandtreasurerandfiledintheofficeoftherecordingofficer.Theinitialresolutionofthe governingbodyshallrefertothissubdivisionasauthorityfortheissue,statetheamountofbonds 208 tobeissuedandrefertothelistofindebtednesstobefundedorrefunded.Thisresolutionshallbe publishedonceeachweekfortwosuccessiveweeksinalegalnewspaperpublishedinthe municipalityoriftherebenosuchnewspaper,inalegalnewspaperpublishedinthecountyseat. Suchbondsmaybeissuedwithoutthesubmissionofthequestionoftheirissuetotheelectors unlesswithintendaysafterthesecondpublicationoftheresolutionapetitionrequestingsuch electionsignedbytenormorevoterswhoaretaxpayersofthemunicipality,shallbefiledwiththe recordingofficer.Ineventsuchpetitionisfiled,nobondsshallbeissuedhereunderunless authorizedbyamajorityoftheelectorsvotingonthequestion. Subd.3. [Expired.] Subd.3a.Youthicefacilities. Amunicipalitymay,withoutregardtotheelectionrequirementundersubdivision1orunderany otherprovisionoflaworhomerulecharter,issueandsellobligationstorefundexistingdebtofan indooricearenathatisusedpredominantlyforyouthathleticactivityifallthefollowingconditions aremet: (1)theobligationsaresecuredbyapledgeofrevenuesfromthefacility;and (2)thegoverningbodyofthemunicipalityfinds,basedonanalysisprovidedbyaprofessional experiencedinfinance,thatthefacility'srevenuesandotheravailablemoneywillbesufficientto paytheobligations,withoutrelianceonapropertytaxlevyorthemunicipality'sgeneralpurpose stateaid. Subd.3b.Streetreconstruction. (a)Amunicipalitymay,withoutregardtotheelectionrequirementundersubdivision1,issueand sellobligationsforstreetreconstruction,ifthefollowingconditionsaremet: (1)thestreetsarereconstructedunderastreetreconstructionplanthatdescribesthestreet reconstructiontobefinanced,theestimatedcosts,andanyplannedreconstructionofotherstreets inthemunicipalityoverthenextfiveyears,andtheplanandissuanceoftheobligationshasbeen approvedbyavoteofallofthemembersofthegoverningbodypresentatthemeetingfollowinga publichearingforwhichnoticehasbeenpublishedintheofficialnewspaperatleasttendaysbut notmorethan28dayspriortothehearing;and (2)ifapetitionrequestingavoteontheissuanceissignedbyvotersequaltofivepercentofthe votescastinthelastmunicipalgeneralelectionandisfiledwiththemunicipalclerkwithin30days ofthepublichearing,themunicipalitymayissuethebondsonlyafterobtainingtheapprovalofa majorityofthevotersvotingonthequestionoftheissuanceoftheobligations. (b)Obligationsissuedunderthissubdivisionaresubjecttothedebtlimitofthemunicipalityandare notexcludedfromnetdebtundersection 475.51,subdivision4. (c)Forpurposesofthissubdivision,streetreconstructionincludesutilityreplacementand relocationandotheractivitiesincidentaltothestreetreconstruction,turnlanesandother improvementshavingasubstantialpublicsafetyfunction,realignments,othermodificationsto intersectwithstateandcountyroads,andthelocalshareofstateandcountyroadprojects. 209 (d)Exceptinthecaseofturnlanes,safetyimprovements,realignments,intersectionmodifications, andthelocalshareofstateandcountyroadprojects,streetreconstructiondoesnotincludethe portionofprojectcostallocabletowideningastreetoraddingcurbsandgutterswherenone previouslyexisted. Subd.4.Properuseofbondproceeds. Theproceedsofobligationsissuedafterapprovaloftheelectorsunderthissectionmayonlybe spent:(1)forthepurposesstatedintheballotlanguage;or(2)topay,redeem,ordefease obligationsandinterest,penalties,premiums,andcostsofissuanceoftheobligations.The proceedsmaynotbespentforadifferentpurposeorforanexpansionoftheoriginalpurpose withouttheapprovalbyamajorityoftheelectorsvotingonthequestionofchangingorexpanding thepurposeoftheobligations. PROPERTYTAXLEVY 275.08AUDITORTOFIXRATE. Subdivision1.Generally. Theratepercentofalltaxes,exceptthestatetaxandtaxestherateofwhichmaybefixedbylaw, shallbecalculatedandfixedbythecountyauditoraccordingtothelimitationsinthischapter hereinafterprescribed;provided,thatifanycounty,city,town,orschooldistrictshallreturna greateramountthantheprescribedrateswillraise,theauditorshallextendonlysuchamountof taxasthelimitedratewillproduce. Subd.1a.Computationoftaxcapacity. Fortaxespayablein1989,thecountyauditorshallcomputethegrosstaxcapacityforeachparcel accordingtotheclassratesspecifiedinsection 273.13.Thegrosstaxcapacitywillbethe appropriateclassratemultipliedbytheparcel'smarketvalue.Fortaxespayablein1990and subsequentyears,thecountyauditorshallcomputethenettaxcapacityforeachparcelaccording totheclassratesspecifiedinsection 273.13.Thenettaxcapacitywillbetheappropriateclassrate multipliedbytheparcel'smarketvalue. Subd.1b.Computationoftaxrates. Theamountscertifiedtobeleviedagainstnettaxcapacityundersection 275.07 byanindividual localgovernmentunitshallbedividedbythetotalnettaxcapacityofalltaxablepropertieswithin thelocalgovernmentunit'staxingjurisdiction.Theresultingratio,thelocalgovernment'slocaltax rate,multipliedbyeachproperty'snettaxcapacityshallbeeachproperty'snettaxcapacitytaxfor thatlocalgovernmentunitbeforereductionbyanycredits. 273.032MARKETVALUEDEFINITION. Forthepurposeofdetermininganypropertytaxlevylimitationbasedonmarketvalue,any qualificationtoreceivestateaidbasedonmarketvalue,oranystateaidamountbasedonmarket value,theterms"marketvalue,""taxablemarketvalue,"and"marketvaluation,"whether equalizedorunequalized,meanthetotaltaxablemarketvalueofpropertywithinthelocalunitof governmentbeforeanyadjustmentsfortaxincrement,fiscaldisparity,powerlinecredit,orwind energyvalues,butafterthelimitedmarketadjustmentsundersection 273.11,subdivision1a,and afterthemarketvalueexclusionsofcertainimprovementstohomesteadpropertyundersection 210 273.11,subdivision16.Unlessotherwiseprovided,"marketvalue,""taxablemarketvalue,"and "marketvaluation"forpurposesofthisparagraph,refertothetaxablemarketvalueforthe previousassessmentyear. 273.13CLASSIFICATIONOFPROPERTY. Subdivision1.Howclassified. Allrealandpersonalpropertysubjecttoageneralpropertytaxandnotsubjecttoanygross earningsorotherin-lieutaxisherebyclassifiedforpurposesoftaxationasprovidedbythissection. Subd.21a.Classrate. Inthissection,whereverthe"classrate"ofaclassofpropertyisspecifiedwithoutqualificationas towhetheritistheproperty's"netclassrate"orits"grossclassrate,"the"netclassrate"and "grossclassrate"ofthatpropertyarethesameasits"classrate." Subd.21b.Taxcapacity. (a)Grosstaxcapacitymeanstheproductoftheappropriategrossclassratesinthissectionand marketvalues. (b)Nettaxcapacitymeanstheproductoftheappropriatenetclassratesinthissectionandmarket values. Subd.22.Class1. (a)Exceptasprovidedinsubdivision23andinparagraphs(b)and(c),realestatewhichisresidential andusedforhomesteadpurposesisclass1a.Inthecaseofaduplexortriplexinwhichoneofthe unitsisusedforhomesteadpurposes,theentirepropertyisdeemedtobeusedforhomestead purposes.Themarketvalueofclass1apropertymustbedeterminedbaseduponthevalueofthe house,garage,andland. Thefirst$500,000ofmarketvalueofclass1apropertyhasanetclassrateofonepercentofits marketvalue;andthemarketvalueofclass1apropertythatexceeds$500,000hasaclassrateof 1.25percentofitsmarketvalue. (b)Class1bpropertyincludeshomesteadrealestateorhomesteadmanufacturedhomesusedfor thepurposesofahomesteadby: (1)anypersonwhoisblindasdefinedinsection 256D.35,ortheblindpersonandtheblindperson's spouse; (2)anypersonwhoispermanentlyandtotallydisabledorbythedisabledpersonandthedisabled person'sspouse;or (3)thesurvivingspouseofapermanentlyandtotallydisabledveteranhomesteadingaproperty classifiedunderthisparagraphfortaxespayablein2008. Etc. 211 UTILITYRATES ResidentialWater:10,12,16,17 0-500cf(0-3,740gal)17.00 500-4000cf(3,741-29,920gal)=26,179gal 1.13/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.31/748galor100cf over13369cfover100,000gal 1.43/748galor100cf CommercialWater:11,11NT&11TX,13,90 0-500cf(0-3,740gal)17.00 500-4000cf(3,741-29,920gal)=26,179gal 1.13/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.31/748galor100cf over13369cfover100,000gal 1.43/748galor100cf Sprinklers-ResTwnhm&Commercial:30,31,31NT,32,32NT,91,91NT 1-500cf(1-3,740gal)17.00 500-4000cf(3,741-29,920gal)=26,179gal 1.13/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.31/748galor100cf over13369cfover100,000gal 1.43/748galor100cf IndustrialWater:14 AllWaterUsage 1.35/748galor100cf SewerRates-Residential&Commercial:20,25,26 0-500cf(0-3,740gal)20.65 over500cf(over3,740gal)3.70/748galor100cf SewerSpecialCases:SW21,SW22 24.65 IndustrialSewerRates:24 AllSewerUsage 2.22/748galor100cf BOD5(BiochemicalOxygenDemand).320/lb. TSS(TotalSuspendedSolids).440/lb. Testing Actualcost+10% SewerDischargeFee 2% WaterOn/OffCharge: ON$25&Off$25 WaterAvailabilityCharge: $38.25/year 1cf=7.48gallons Ratesfor2013UtilityBills 212 USEFULTERMS(GLOSSARY) ACCOUNT:Atermusedtoidentifyanindividualasset,liability,expenditurecontrol,revenue control,orfundbalance. ACCOUNTSPAYABLE:Amountsowedtoothersforgoodsorservicesreceived. ACCOUNTSRECEIVABLE:Amountsduefromothersforgoodsfurnishedorservicesrendered. ACCOUNTINGSYSTEM:Thetotalsetofrecordsandprocedureswhichareusedtorecord,classify andreportinformationonfinancialstatusandoperationsofanentity. ACCRUALBASISOFACCOUNTING:Themethodofaccountingunderwhichrevenuesarerecorded whentheyareearnedandexpendituresarerecordedwhengoodsandservicesarereceived. ACTIVITY:Aspecificanddistinguishablelineofworkperformedbyoneormoreorganizational componentsofagovernmentalunitforthepurposeofaccomplishingafunctionforwhichthe governmentalunitisresponsible.Forexample"Ice&SnowRemoval”isanactivityperformedin thedischargeofthe"PublicWorks"function. ADOPTION:TheformalactiontakenbytheCityCounciltoauthorizeorapprovethebudget. ADVALOREM:Inproportiontovalue.Thebasisforlevyingtaxesonproperty. AGENCYFUND:Afundconsistingofresourcesreceivedandheldbythegovernmentalunitasan agentforothersorotherfundsofthegovernmentalunit. APPROPRIATION:Anauthorizationgrantedbyalegislativebodytomakeexpendituresandtoincur obligationsforspecificpurposes.Anappropriationislimitedinamounttothetimeitmaybe expended. ASSESSEDVALUATION:Valueplaceduponrealestateorotherpropertyasabasisforlevyingtaxes. ASSESSMENTS:Chargesmadetopartiesforactualservicesorbenefitsreceived. ASSETS:Propertyownedbyagovernmentalunit,whichhasamonetaryvalue. ASSIGNEDFUNDBALANCE:Resourcesthegovernmentintendstouseforspecificpurposes,butare neitherrestrictednorcommitted. AUDIT:Theexaminationofdocuments,records,reports,systemsofinternalcontrol,accounting andfinancialprocedures,andotherevidenceforoneormoreofthefollowingpurposes: (a)Toascertainwhetherthestatementspreparedfromtheaccountspresentfairly thefinancialpositionandtheresultsoffinancialoperationsoftheconstituent 213 fundsandbalancedaccountgroupsofthegovernmentalunitinaccordancewith generallyacceptedaccountingprinciplesapplicabletogovernmentalunitsand onabasisconsistentwiththatoftheprecedingyear. (b)Todeterminethepropriety,legalityandmathematicalaccuracyofa governmentalunit'sfinancialtransactions. (c)Toascertainwhetherallfinancialtransactionshavebeenproperlyrecorded. (d)Toascertainthestewardshipofpublicofficialswhohandleandareresponsible forthefinancialresourcesofagovernmentalunit. BALANCEDBUDGET:Abudgetinwhichestimatedrevenuesequalestimatedexpenditures includingoperatingtransfers.Abalancedbudgetcannotusereservesorretainedearningstofund expenditures. BOND:Awrittenpromise,generallyunderseal,topayaspecifiedsumofmoney,calledtheface valueorprincipalamount,atafixedtimeinthefuture,calledthedateofmaturity,andcarrying interestatafixedrate,usuallypayableperiodically. BONDEDINDEBTEDNESS:Outstandingdebtbyissuesofbonds,whicharerepaidbyadvaloremor otherrevenue. BUDGET:Aplanoffinancialoperationembodyinganestimateofproposedexpendituresfora givenperiodandtheproposedmeansoffinancingthem. BUDGETDOCUMENT:TheofficialwrittenstatementpreparedbytheFinanceDepartmentand FinanceDirectoroftheCitywhichpresentstheproposedbudgettotheCityCouncil. BUDGETBODYMESSAGE:Ageneraldiscussionoftheproposedbudgetpresentedinwritingasa partofthebudgetdocument.Thebudgetmessageexplainsprincipalbudgetissuesagainstthe backgroundoffinancialexperienceinrecentyearsandpresentsrecommendationsmadebytheCity Staff. BUDGETCALENDAR:Thescheduleofkeydates,whichagovernmentfollowsinthepreparation andadoptionofthebudget. BUDGETARYCONTROL:Thecontrolormanagementofagovernmentalunitorenterprisein accordancewithanapprovedbudgetforthepurposeofkeepingexpenditureswithinthelimitation ofavailableappropriationsandavailablerevenues. CAPITALASSETS:Assetswithavalueof$5,000ormore. CAPITALIMPROVEMENTBUDGET:Aplanofproposedcapitalexpendituresandameansof financingthem.Thecapitalbudgetisenactedaspartofthecompleteannualbudget. 214 CAPITALPROGRAM:Aplanforcapitalexpenditurestobeincurredeachyearoverafixedperiod ofyearstomeetcapitalneedsarisingfromthelong-termworkprogramorotherwise.Itsetsforth eachprojectorothercontemplatedexpenditureinwhichthegovernmentistohaveapartand specifiesthefullresourcesestimatedtobeavailabletofinancetheprojectedexpenditures. CAPITALPROJECTSFUNDS:Toaccountforfinancialresourcestobeusedfortheacquisitionor constructionofmajorcapitalfacilities. CASHBASIS:Themethodofaccountingunderwhichrevenuesarerecordedwhenreceivedincash andexpendituresarerecordedwhenpaid. CERTIFIEDLEVY:Totaltaxlevyofajurisdiction,whichiscertifiedtotheCountyAuditor. CHARGESFORSERVICES:Chargesforcurrentservicesrendered. CHARTOFACCOUNTS:Theclassificationsystemusedbyagovernmententitytoorganizethe accountingforvariousfunds. COMMITTEDFUNDBALANCE:Resourcesusedforspecificpurposespursuanttoconstraints imposedbyformalactionofthegovernment’shighestlevelofdecision-makingauthority. CONSUMERPRICEINDEX(CPI):AstatisticaldescriptionofpricelevelsprovidedbytheU.S. DepartmentofLabor.Theindexisusedasameasureoftheincreaseinthecostofliving(i.e., economicinflation). CONTINGENCY:Budgetforexpenditureswhichcannotbeplacedindepartmentalbudgets, primarilyduetouncertaintyaboutthelevelortimingofexpenditureswhenthebudgetisadopted. Thecontingencyalsoservesasahedgeagainstshortfallsinrevenuesorunexpectedexpenditures. CURRENT:Atermwhich,appliedtobudgetingandaccounting,designatestheoperationsofthe presentfiscalperiodasopposedtopastorfutureperiods. DEBT:Anobligationresultingfromtheborrowingofmoneyorfromthepurchaseofgoodsand services. DEBTLIMIT:Themaximumamountofgrossornetdebt,whichislegallypermitted. DEBTMARGIN:Theamountofavailabledebt,whichmaybeissuedbyagovernmentalunitbefore reachingitsdebtlimit. DEBTSERVICEFUNDS:Toaccountfortheaccumulationofresourcesforpaymentofgenerallong- termdebt. DEPARTMENT:Basicorganizationalunitofgovernment,responsibleforcarryingoutrelated functions. 215 DEPRECIATION:Expirationintheservicelifeofcapitalassetsattributabletowearandtear, deterioration,actionofthephysicalelements,inadequacyorobsolescence. DEPUTYREGISTRAR(DMV):CityserviceofissuingStateissuedlicensesformotorvehiclesand equipment,suchaslicenseplatesandtabsforcars,trucks,trailers,andrecreationalvehicles. DISTINGUISHEDBUDGETPRESENTATIONAWARDSPROGRAM:Avoluntaryawardsprogram administeredbytheGovernmentFinanceOfficersAssociationtoencouragegovernmentsto prepareeffectivebudgetdocuments. EFFECTIVEBUYINGINCOME(EBI):Astatisticalmeasureofbuyingpowerofanareaorgroupof individuals. ENTERPRISEFUNDS:Toaccountforoperationsthatarefinancedandoperatedinamanner similartoaprivatebusinessenterprises,wheretheintentofthegoverningbodyisthatthecostof providingservicesaretoberecoveredprimarilyonauser-chargebasistothegeneralpublic. ESTIMATEDMARKETVALUE:Representsthesellingpriceofapropertyifitwereonthemarket. Estimatedmarketvalueisconvertedtotaxcapacitybeforepropertytaxesarelevied. EXPENDITURE:Whereaccountsarekeptontheaccrualormodifiedaccrualbasisofaccounting, thecostofgoodsreceivedorservicesrenderedwhethercashpaymenthavebeenmadeornot. Whereaccountsarekeptonacashbasis,expendituresarerecognizedonlywhenthecash paymentsfortheabovepurposesaremade. FIBERNETMONTICELLO(FNM):ThenameoftheCity’sfiberopticnetwork,whichprovides internet,phone,andcabletelevisiontoresidentsandbusinessesofMonticelloasaCityrun enterprise. FINES:Revenuesfrompenaltiesimposedforviolationoflawsorregulations. FISCALPOLICY:Agovernment’spolicieswithrespecttorevenues,spending,anddebtmanagement astheserelatetogovernmentservices,programsandcapitalinvestment.FiscalPolicyprovidesan agreed-uponsetofprinciplesfortheplanningandprogrammingofbudgetsandtheirfunding. FISCALYEAR:ThebudgetandaccountingyearthatbeginsonthefirstdayofJanuaryandendson thelastdayofDecemberofeachyear. FIXEDASSETS:Assetsofalong-termcharacterwhichareintendedtocontinuetobeheldorused, suchasland,buildings,machinery,furniture,andotherequipment. FULLTIMEEQUIVALENT(FTE):Thenumberofemployeehours(2,080)neededtobeequaltoone fulltimeemployee.Severalparttimeemployeesmaybecombinedtomakeonefulltime equivalent. FUNCTION:Agroupofrelatedactivitiesaimedataccomplishingamajorserviceorregulatory 216 programforwhichthegovernmentunitisresponsible. FUND:Anindependentfiscalandaccountingentitywithaself-balancingsetofaccountsrecording cashand/orotherresourcestogetherwithallrelatedliabilities,obligations,reserves,andequities whicharesegregatedforthepurposeofcarryingonspecificactivitiesorattainingcertain objectives. FUNDBALANCE:Thedifferencebetweenagovernmentalfund'sassetsandliabilities(theequity).. GENERALFUND:AccountsforthegeneraloperationoftheCityandallfinancialresourcesexcept thosetobeaccountedforinanotherfund. GENERALGOVERNMENT:Expenditures,whichrepresentsasetofaccounts,towhicharecharged theexpendituresforoperatingtheCity. GENERALOBLIGATIONBONDS:Whenagovernmentpledgesitsfullfaithandcredittothe repaymentofthebondsitissues,thanthosebondsaregeneralobligation(GO)bonds. GOAL:Astatementofbroaddirection,purposeorintentbasedontheneedofacommunity.A goalisgeneralandtimeless;thatis,itisnotconcernedwithaspecificachievementinagiven period. GOVERNMENTALACCOUNTING:Thecompositeofanalyzing,recording,summarizing,reporting, andinterpretingthefinancialtransactionsofgovernmentalunitsandagencies. GOVERNMENTALFUNDTYPES:Fundsusedtoaccountfortheacquisition,useandbalancesof expendablefinancialresourcesandtherelatedcurrentliabilities-exceptthoseaccountedforin proprietaryfundsandfiduciaryfunds.Inessence,thesefundsareaccountingsegregationof financialresources.UndercurrentGAAP,therearefourgovernmentalfundtypes:general,special revenue,debtserviceandcapitalprojects. GRANT:Acontributionofassetsbyonegovernmentalunitorotherorganizationtoanother. Grantsareusuallymadeforspecifiedpurposes. HOMESTEADANDAGRICULTURALCREDIT(HACA):Aformofstatepaidpropertytaxrelieffor farmpropertyandowneroccupiedhomes. IMPROVEMENTBONDS:Bondspayablefromtheproceedsofspecialassessmentsfromproperties benefitingfromanimprovement. IMPROVEMENTS:Buildings,otherstructures,andotherattachmentsorannexationstolandwhich areintendedtoremainsoattachedorannexed,suchassidewalks,trees,drains,andsewers. INFLOW/INFILTRATION(I/I):Thetermusedtodescribecleanwaterenteringintothesanitary sewersystem. 217 INTERFUNDTRANSFERS:Amountstransferredfromonefundtoanother. INFRASTRUCTURE:Assetswhichareimmovableandofvalueonlytothegovernmentalunit(i.e. roads,gutters,sewerlines). INTERGOVERNMENTALREVENUES:Revenuesfromothergovernmentsintheformofgrants, entitlement,orsharedrevenues. INVESTMENTS:Securitiesheldfortheproductionofincomeintheformofinterest. LEVY:(Verb)Toimposetaxes,specialassessments,orservicechargesforthesupportof governmentalactivities.(Noun)Thetotalamountoftaxes,specialassessments,orservicecharges imposedbyagovernmentalunit. LEVYLIMIT:ThedefinedincreasetheCity’spropertytaxlevycan’tnotexceedwithoutspecial authorizationasdefinedbyMinnesotaStateStatue. LICENSES:Revenuesreceivedfromthesaleofbusinessandnon-businesslicenses. LIMITEDMARKETVALUE:Theamountthemarketvalueofapropertycanincreasefromoneyear tothenextforcalculatingpropertytaxes.Thelimitedmarketvaluesystemiscurrentlybeing phase-outbytheStateofMinnesota. LINEITEM:Aspecificitemorgroupofsimilaritemsdefinedbydetailinauniqueaccountinthe financialrecords. LOCALGOVERNMENTAID(LGA):Intergovernmentalrevenuefromthestatetomunicipalitiesto helpfundgeneralexpenditures. LONG-TERMDEBT:Debtwithamaturityofmorethanoneyearafterthedateofissuance. MAINTENANCE:Theupkeepofphysicalpropertiesinconditionforuseoroccupancy. MARKETVALUE:Thevalueapropertyisworth. MARKETVALUEHOMESTEADCREDIT(MVHC):Statepaidpropertytaxreductiononowner occupiedhomesbasedonthepropertiesmarketvalue. MARKETVALUEEXCLUSION(MVE):ProvisionintheStatepropertytaxsystemwhichexemptsor removesaportionofapropertiesmarketvaluefrompropertytaxes. MISCELLANEOUS:Revenuesorexpendituresnotclassifiedinanyotherrevenueorexpenditure category. MODIFIEDACCRUALBASIS:Thebasisofaccountingunderwhichexpendituresotherthanaccrued interestongenerallong-termdebtarerecordedatthetimeliabilitiesareincurredandrevenuesare 218 recordedwhenreceivedincashexceptformaterialand/oravailablerevenues,whichshouldbe accruedtoreflectproperlythetaxleviedandrevenueearned. NONSPENDABLEFUNDBALANCE:Amountsthatcannotbespentbecausetheyareeither(a0notin spendableformor(b)legallyorcontractuallyrequiredtobemaintainedintact. OBJECTOFEXPENDITURE:Expenditureclassificationsbaseduponthetypesorcategoriesofgoods andservicespurchased. OBJECTIVE:Desiredoutputorientedaccomplishments,whichcanbemeasuredandachieved withinagiventimeframe. OPERATINGBUDGET:Afinancialplanthatestimatesrevenuesandexpendituresforaspecified period. OPERATINGEXPENSE:Thecostforpersonnel,materialandequipmentrequiredforadepartment tofunction. OPERATINGREVENUE:Moniesreceivedfromongoingoperations.Operatingrevenuesareusedto payforday-to-dayservices. OPERATINGTRANSFERS:Amountstransferredfromonefundtoanother,shownasexpenditurein theoriginatingfundandrevenueinthereceivingfund. ORDINANCE:AformallegislativeenactmentbytheCityCouncil. PAY-AS-YOU-GOBASIS:Atermusedtodescribeafinancialpolicybywhichcapitaloutlaysare financedfromcurrentrevenuesratherthanthroughborrowing. PERFORMANCEMEASURE:SeeServiceLevels. PERSONALSERVICES:Expendituresforsalaries,wages,andfringebenefitsofemployees. PROGRAM:Agroupofrelatedactivitiesperformedbyoneormoreorganizationalunitsforthe purposeofaccomplishingafunctionforwhichthegovernmentalunitisresponsible. PROJECT:Aplanofwork,jobassignment,ortask. PROPRIETARYACCOUNTS:Thoseaccountswhichshowactualfinancialpositionandoperation,such asactualassets,liabilities,reserves,fundbalances,revenues,andexpenditures,asdistinguished frombudgetaryaccounts. PUBLICSAFETY:Toaccountforexpendituresrelatedtotheprotectionofpersonsandproperty. PUBLICWORKS:ToaccountforexpendituresforthemaintenanceofCitypropertyand infrastructure. 219 PURPOSE:Abroadstatementofthegoals,intermsofmeetingpublicserviceneeds,thata departmentisorganizedtomeet. REFUNDINGBONDS:Bondsissuedtoretirebondsalreadyoutstanding. REIMBURSEMENT:Cashorotherassetsreceivedasarepaymentofthecostofworkorservices performedorofotherexpendituresmadefororonbehalfofanothergovernmentalunitor departmentorforanindividual,firm,orcorporation. RESERVE:Anaccountwhichrecordsaportionofthefundbalancewhichmustbesegregatedfor somefutureuseandwhichis,therefore,notavailableforfurtherappropriationorexpenditure. RESOLUTION:Aspecialortemporaryorderofalegislativebody;anorderofalegislativebody requiringlesslegalformalitythananordinanceorstatute. RESOURCES:Theactualassetsofagovernmentalunit,suchascash,pluscontingentassetssuch asestimatedrevenuesapplyingtothecurrentfiscalyearnotaccruedorcollected,andbonds authorizedandnotissued. RESTRICTEDFUNDBALANCE:Fundbalanceshouldbereportedasrestrictedwhenconstraints placedontheuseofresourcesareeither: a.Externallyimposedbycreditors(suchasthroughdebtcovenants),grantors, contributors,orlawsorregulationsofothergovernments;or b.Imposedbylawthroughconstitutionalprovisionsorenablinglegislation. REVENUE:Thetermdesignatesanincreasetoafund'sassetswhich:1)doesnotincreasealiability; 2)doesnotrepresentarepaymentofanexpenditurealreadymade;3)doesnotrepresenta cancellationofcertainliabilities;and4)doesnotrepresentanincreaseincontributedcapital. REVENUEBOND:Abondthatisbackedbyaparticularrevenuesourcesuchaswateruserfees. SERVICELEVELS:Datatodeterminehoweffectiveorefficientaprogramisinachievingits objective. SPECIALASSESSMENT:Acompulsorylevymadebyalocalgovernmentagainstcertainproperties todefraypartorallofthecostofaspecificimprovementorservicewhichispresumedtobeof generalbenefittothepublicandofspecialbenefittosuchproperties. SPECIALREVENUEFUND:Toaccountforrevenuederivedfromspecificrevenuesourcesthatare legallyrestrictedforspecificpurposes. SY:Abbreviationforsquareyard,whichishowsealcoatingandstreetoverlayprojectsare measured. 220 TAXCAPACITY:Anamountdeterminedbyapercentageofaproperty'smarketvalue,whichisthan appliedtothetaxratesoftaxingjurisdictionsaffectingthepropertytodeterminetheamountof propertytaxesowed. TAXCAPACITYRATE:Taxrateappliedtotaxcapacitytogeneratepropertytaxrevenue.Therate isobtainedbydividingthepropertytaxlevybytheavailabletaxcapacity. TAXCLASSIFICATIONRATE:Rateatwhichestimatedmarketvaluesareconvertedintotheproperty taxbase.Theclassificationratesareassignedtopropertiesdependingontheirtype(residential, commercial,farm,etc.)and,insomecasestherearetwotiersofclassificationrates,withtherate increasingastheestimatedmarketvaluesincreases. TAXINCREMENTFINANCING(TIF):Financingtooloriginallyintendedtocombatsevereblightin areas,whichwouldnotberedeveloped"butfor"theavailabilityofgovernmentsubsidiesderived fromlocallygeneratedpropertytaxrevenues. TAXLEVY:Thetotalamounttoberaisedbygeneralpropertytaxesforthepurposestatedinthe resolutioncertifiedtothecountyauditor. TAXRATE:Theamountappliedtotaxcapacitytodeterminethetaxesgeneratedbytheproperty. TAXABLEMARKETVALUE:Themarketvalueofapropertylessthemarketvalueexclusion.Thisis thevalueusedtocalculatepropertytaxesonaproperty. TAXES:Compulsorychargesleviedbyagovernmentalunitforthepurposeoffinancingservices performedforthecommonbenefit. TRUSTANDAGENCYFUNDS:Fundsusedtoaccountforassetsheldbyagovernmentinatrust capacityorasanagentforindividuals,privateorganizations,othergovernmentsand/orother funds. TRUSTFUND:Afundconsistingofresourcesreceivedandheldbythegovernmentalunitas trustee,tobeexpendedorinvestedinaccordancewiththeconditionsofthetrust. UNASSIGNEDFUNDBALANCE:ThisistheresidualclassificationfortheGeneralFund.Thisisfund balancethathasnotbeenreportedinanyotherclassification.TheGeneralFundistheonlyfund thatcanreportapositiveunassignedfundbalance.Othergovernmentalfundswouldreportdeficit fundbalancesasunassigned. UNBALANCEDBUDGET:Abudgetwhichundesignatedfundbalanceorreservesareusedor increased,inordertobalanceestimatedrevenuestoestimatedexpendituresorexpenses. UNRESERVEDFUNDBALANCE:Theportionofafund’sbalancethatisnotrestrictedforaspecific purposeandisavailableforgeneralappropriation. 221 USERFEES:Thepaymentofachargefordirectreceiptofapublicservicebythepartybenefiting fromtheservice. UTILTYVALUATIONTRANSITIONAID(UVTA):AStatefinancialaidprogramfor2009and2010paid tolocalgovernmentstooffsetthereducedpropertytaxrevenuegeneratedbyutilitypropertiesdue totheStatereducingthetaxratepaidonutilityproperty. WORKLOADDATA:Aunitofworktobedone. ACRONYMS CAFRComprehensiveAnnualFinancialReport CDCertificateofDeposit CIPCapitalImprovementPlan CPCommercialPaper CPIConsumerPriceIndex DMVDepartmentofMotorVehicleorDeputyRegistrar HACAHomesteadandAgriculturalCreditAid EBIEffectiveBuyingIncome EDAEconomicDevelopmentAuthority MVEMarketValueExclusion EMVEstimatedMarketValue FHLBFederalHomeLoanBank FNCFinancialNortheasternCompanies FNMFiberNetMonticello FNMAFederalNationalMortgageAssociation FTEFullTimeEquivalent GAAPGenerallyAcceptedAccountingPrinciples GASBGovernmentalAccountingStandardsBoard GFOAGovernmentFinanceOfficer’sAssociation GOGeneralObligation I/IInflow/Infiltration LGALocalGovernmentAid MCCMonticelloCommunityCenter MCESMetropolitanCouncilEnvironmentalServices MVHCMarketValueHomesteadCredit SACSewerAvailabilityCharge SYSquareYard TIFTaxIncrementFinancing UVTAUtilityValuationTransitionAid WACWaterAvailabilityCharge 222