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2014 Budget$’+%#-)+/)&*."(’#)&&’#’!(, +#3-/!$(13$-2,$(* .9=6>698,47515<7&?;6<5= 8BXOR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$.LJNT3FRCST’(%)’%(&’* .OUNDJL$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2LFN<OSUSTB’(%)’%(&’+ .OUNDJL$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$?OM<FRRBULT’(%)’%(&’+ .OUNDJL$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$-RJBN>TUMPG’(%)’%(&’* .OUNDJL$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$7LOXE3JLHBRT’(%)’%(&’* $(1301#’’ .JTX,EMJNJSTRBTOR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$5FGG;Y9FJLL 1JNBNDF/JRFDTOR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ABXNF;CFRH <UCLJDAORKS/JRFDTOR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$@BDBNT .OMMUNJTX/FVFLOPMFNT/JRFDTOR$$$$$$$$$$$$$$$$$,NHFLB>DIUMBNN .OMMUNJTX.FNTFR/JRFDTOR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$6JTTX-BLTOS 0DONOMJD/FVFLOPMFNT/JRFDTOR"4NTFRJM#$$$$$$$$$$$$$$$$5FGG;Y9FJLL /FPUTX.JTX.LFRK$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$.BTIX>IUMBN 3UMBN=FSOURDF8BNBHFR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$?RBDX0RHFN .IJFG-UJLEJNH;GGJDJBL$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$=ON3BDKFNMUFLLFR .JTX0NHJNFFR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$@BDBNT 1JRF.IJFG$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$>TFVF5OFRH /FPUTX=FHJSTRBR8BNBHFR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$,NN0DKMBN 7JQUOR>TORF8BNBHFR$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$=BNEBLL5OINSFN >TRFFT>UPFRJNTFNEFNT$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$?OM8OORFS <BRKS>UPFRJNTFNEFNT$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$?OM<BWFLK ABTFR!>FWBHF>UPFRJNTFNEFNT$$$$$$$$$$$$$$$$$$$$$$$$$$8BTT?IFJSFN )-(,1$(13"$-2,13"-210(%&01#’’ ARJHIT.OUNTX>IFRJGG$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$5OF3BHFRTX A>-0NHJNFFRJNH.ONSULTBNT$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$>IJCBNJ-JSSON @FOLJB0NVJRONMFNTBL>FRVJDFS$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$.IUDK6FXFS 1 DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presentedan awardofDistinguishedBudgetPresentationtotheCityofMonticelloforitsannualbudgetforthe fiscalyearbeginningJanuary1,2013.Thecityhasreceivedthisawardforeachbudgetithas preparedforthepastfouryears. Inordertoreceivethisaward,agovernmentalunitmustpublishabudgetdocumentthatmeetsprogram criteriaasa policydocument,asanoperationsguide,asafinancialplanandasacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuestoconformto programrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityforanotheraward. GOVERNMENTFINANCEOFFICERSASSOCIATION D istinguished B udgetPresentation Award PRESENTEDTO CityofMonticello Minnesota FortheFiscalYearBeginning January1,2013 ExecutiveDirector 2 BUDGETMESSAGE INTRODUCTION Morethanjustacollectionoffinancialinformation,thebudgetisatool.Howthisversatiletoolis useddependsonthestakeholder.Policymakersusethebudgettoprovidedirectiononservice levelsandplacelimitsonspending.Formanagers,thebudgetoffersbenchmarksformeasuring performanceandstewardship.Tocommunityadvocacygroups,thebudgetconveysvisibilityasto whethertheirconcernsarebeingaddressed.Overall,thebudgetisatoolforcommunicatingthe city'splans,policies,procedures,andobjectives,regardingtheservicestobedeliveredandthe assetstobeacquiredintheupcomingandfuturefiscalyears.Indeed,thebudget’seffectivenessis meaningfullyinfluencedbytheconvictionofthevariousstakeholdersusingthispowerfultool. BUDGETPOLICYANDSTRATEGY Thebudgetdocumentwaspreparedafteranalyzingandevaluatingrequestsfromthevarious departments,andrepresentstherequestedfinancialsupportfortheoperationofthecityof Monticellofortheupcomingfiscalyear.Revenueestimatesareconservativeandrealistic.The importanceofasoundrevenuepicturecannotbeoverstated.Revenueestimatesarebasedon historicalandcurrenttrends. ThecityofMonticelloprovidesarangeofservicestothecommunity,includingpoliceandfire protection,streetandparkmaintenance,snowandiceremoval,waterandsewerutilityservices, andadministrativeandplanningservices.Inadditionthecityownsandoperatesacommunity center(MCC),departmentofmotorvehicles(DMV),municipaloff-saleliquorstore,andafiberoptic network(FiberNetMonticello).Thelevelofserviceprovidedbytheproposedbudgetissimilarto thatcurrentlyenjoyedbythecommunity. MAJORINITIATIVES ThecityofMonticelloprovidesafullrangeofmunicipalservices,aslistedinthepreviousparagraph andasauthorizedbystatestatute.Monticelloisblessedwithmanyassets,includingabeautiful setting,anexcellentlocation,arichheritage,andatalentedpopulation.Thecityseekstouse, preserveandenhancetheseassetsinbuildingagreat,affordableplacetolive,workanddo business.Thecitywillfulfillthegoalsbelowtoachievethismission: 1.Continuetomaintainthelowestpossibletaxratewhileprovidingthebestpossibleservice. 2.Continuetodevelopandprovideanunequaledsystemofparks,trailsandrecreational facilities,includingtheuniqueassetsoftheMonticelloCommunityCenter,theMississippi RiverandconversionoftheBertramChainofLakespropertyintoaregionalpark. 3 3.Continuetomaintainthecitystreetsbyfollowinganannualsealcoatandcrackseal programandoverlayingstreetsbeforetheyarebeyondrepairandneedreplacing. 4.Developandadoptalong-rangetransportationplanwhichwillimprovetrafficflowaround andthroughthecity. 5.Implementthedowntownredevelopmentplanwhichwillmaintainadowntownareathat combinesasuccessfulcommercialdistrict,communityidentityandheritageand connectionwiththeMississippiRiver. 6.Seektoexpandthesupplyof"moveup"housingthatallowspeopletoupgradetheirhome withoutleavingthecommunity. 7.Seektodevelopandattractawiderangeofemploymentopportunitieswithagrowing emphasisonhigher-payingjobs. 8.Continuetomaintainhighqualitywaterandsewagetreatmentfacilities. 9.Provideunequaledaccesstoinformationwithhighspeedinternet,phoneandtelevision throughitsfiberopticnetwork. Citycouncilandstaffusedthesegoalstodirectthedevelopmentofthe2014budget. TOTALBUDGET The2014budgetincludesallthefundsmaintainedbythecity.Eachfundisresponsibletoaccount foraparticularactivityoractivities.Eachfund-typewillbediscussedwithinthismessageandinthe budgetdocument. Thefollowingcomparestheadopted2013and2014budgets: Fund-type 2013 2014 2013 2014 GeneralFund6,786,969$6,760,000$6,786,969$6,760,000$ SpecialRevenueFunds4,451,5904,688,4584,735,0654,411,040 DebtServiceFunds5,601,0245,728,56316,911,1176,064,853 CapitalProjectFunds2,522,2352,183,0005,317,8063,120,800 EnterpriseFunds15,726,87010,346,67815,866,55511,448,643 InternalServiceFunds382,1381,003,028 Total35,088,688$30,088,837$49,617,512$32,808,364$ RevenuesExpenditures TotalBudget 4 Totalrevenuesandexpendituresdeclined14%and34%,respectively.GeneralFundrevenuesand expendituresdecreased.4%.Debtserviceexpendituresdecreasedtoreflectcross-overrefundingof debtin2013.Capitalprojectfundswillincurlowerexpendituresbecauseofdecliningresources availableforsuchprojects.Enterprisefundexpendituresdecreasedbecauseofprioryeardebt- financedimprovementstoupgradethesewagetreatmentplant. Thefollowinggraphsdisplaytherevenuesandexpendituresattributabletoeachfund-typeinthe 2014Budget: GeneralFund 23% Special Revenue Funds 16%DebtService Funds 19%CapitalProject Funds 7% Enterprise Funds 35% 2014REVENUESBYFUND-TYPE GeneralFund 21% Special Revenue Funds 14% DebtService Funds 19%CapitalProject Funds 10% Enterprise Funds 36% 2014EXPENDITURESBYFUND-TYPE 5 PROPERTYTAXES ThestateofMinnesotahasgrantedlocalmunicipalitiestheauthoritytolevytaxestofund operationsanddebtpayments.ForthecityofMonticello,thepropertytaxlevyaccountsforover 80%ofrevenuesintheGeneralFundandover30%inthespecialrevenuefunds.Thedebtservice funds,in2014,willlevy$1,263,000inpropertytaxesfordebtservicepayments,whichis6%higher thantheprioryear.Supplementedwithtransfersfromutilityfunds,reservesindebtservicefunds willalsocontributetothecity'sdebtpayments.For2014,thecity'spropertytaxlevywillincreaseto $8,150,000,anincreaseof$250,000(3.2%).Inthepast,thecityhasusedreservestofund operationsanddebtpaymentsinsteadofincreasingpropertytaxes. 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% 201318,692,76218.6%42.262-15.1%7,900,0000.6% 201418,244,090-2.4%44.6725.7%8,150,0003.2% Undercontract,theWrightCountyassessorvaluesallpropertieslocatedwithinthecity’scorporate limits.Thismarketvalueisappliedtotheclassratesassignedbythestatetodetermineaproperty's taxcapacity.Thecountyestimatesthecity'staxcapacityfortaxespayablein2014at$18,244,090 whichisa2.4%decrease.Thecity'spropertytaxlevyisdividedbythetaxcapacitytodeterminethe city'staxcapacityrate.Thetaxcapacityrateisappliedtoeachproperty'staxcapacitytodetermine thetaxthecitywillcollectbeforeanycreditsareapplied.For2014,thecity'staxrateisexpectedto changefrom42.262%to44.672%,a5.7%increase. Thecityatthistimedoesnothavetheauthoritytolevyorcollectlocalsalestaxesorothertypesof taxesunderthestate'staxsystem. PERSONNELSERVICES Thecity's2014budgetdoesnotincludeanynewpositions,butdoesincludeastepincreasefor employeesstillmovingupthepayscalesystem.Aonepercentcost-of-livingincreaseisinthe budget.Inthepastemployeeswereeligibleforaonestepincreasebasedonsatisfactory 6 performance.In2013,thecityre-institutedthestep-payscaleplandiscontinuedin2010.Public worksandFiberNetemployeesbelongtoaunion.Theunion’scollectivebargainingagreement expiresMarch31,2015. Healthinsurancepremiumswillincreaseapproximately15%in2014.Employeeswillpaytwo-thirds oftheincreaseandthecitywillpayone-third.Employeeshaveachoicebetweentwohigh deductiblehealthplanswithHSAs.For2014,thecityeliminatedatraditionalhealthplanto encouragemoreparticipationonthehighdeductibleplans.Staffwillcontinuetoexplorewaysto reducefuturepremiumincreasestoboththecityanditsemployees. Whiletherearenonewpositionsinthe2014budget,apart-timecommunicationscoordinatormay beconvertedtofull-time.Thecityisalsoexperimentingwithstaffingchangesinthepublicworks departmentbyeliminatingonepositionandleavingtwoothervacantpositionsunfilled.Finally, changesinFiberNetoperationsmayresultinonemoreemployee. ThecontributionratestothePublicEmployeesRetirementAssociation(PERA)for2014forboth employerandemployeeswillremainthesame:7.25%ofwagesforemployerand6.25%for employee.ThebudgetalsoestimatesFICAandMedicaretaxesat6.20%and1.45%respectivelyfor 2014. Theremainderofthissectionwilldescribethemajorinitiativesfor2014foreachofthefundtypes andtheiractivities. GENERALFUND Expenditures The2014budgetdecreased.4%overthe2013budget.Excludingoperatingtransfers,2014 appropriationsare5.2%higherthan2010expenditures.Thisincreasetranslatesintoa1.3% nominalannualrate.Thefollowingscheduledisplays2014budgetedGeneralFundexpendituresby departmentcomparedwiththeprioryears: Department 2013 2014 %Change GeneralGovernment1,451,567$1,497,518$3.2% PublicSafety1,782,7071,797,0490.8% PublicWorks2,467,1502,439,443-1.1% Recreation&Culture908,285923,9741.7% Unallocated97,2609,016-90.7% OperatingTransfers80,00093,00016.3% Total6,786,969$6,760,000$-0.4% 2014GeneralFundExpendituresandOtherUses 7 General Government 22% PublicSafety 27% PublicWorks 36% Recreation 14% Other 1% GeneralFundExpenditures-2014 Thepublicworksdepartmentisthelargestdepartmentintermsofbudgetedexpendituresandthe streetandalleysactivitybudgetisthelargestactivitywithinthedepartment.Thebudgetforthe streetandalleysactivitywasincreased20.6%for2014.Thisincreaseisnecessarytofundlargerseal coatandcracksealprojects. Administration,engineeringandinspectionsexpendituresinthepublicworksdepartmentare expectedtodeclinewithstaffingchanges.Redistributionofdutiesanduseofcontractorswillallow thecitytomaintaincurrentservicelevels. Aswithalldepartments,personnelservicesincreasedwithwageandbenefitinflation.Overall,the publicworksdepartmentdecreasedby1.1%. Thesecondlargestdepartmentbasedonexpendituresisthepublicsafetydepartment.Activities budgetedinthepublicsafetydepartmentincludelawenforcement,fire,buildinginspections,civil defense,NationalGuard,andanimalcontrol.ThecitycontractswiththeWrightCountySheriff's departmentforlawenforcement.The2014contractincludesa$2.00increaseinthehourlyrateat aservicelevelfourlesshoursperdaythan2013. Thefireactivitybudgetpaysfortheoperationsofthecity'spaidvolunteerfiredepartment.The suppliesbudgetincreasedwiththeallocationofequipmentpurchasestosmalltoolsand equipment.Thepublicsafetydepartmentbudgetincreased.8%in2014. Generalgovernmentincreasedby3.2%for2014,drivenlargelybyelectionactivitiesthatoccurin even-numberedyears.Informationtechnologyactivityexpendituresdeclinedwiththeinitiationof aninternalservicesfundforITservices.ITservicescostswillbedistributedtoeachbudgetunitin 2014.ThenewfundcentralizesITcostsintoonereportingunitandallocatesthemtoeachbudget unitbasedonuse. 8 Recreationandcultureincreasedby1.7%in2014,withitslargestactivity(parkoperations) increasingby15%,largelywiththedistributionofpreviouslyunallocatedinsurancecosts. Departmentexpendituresremainstablewithnonewmajorinitiativesplannedfor2014. Includingservicesforpolice,assessor,andlegalservices,otherservicesandchargesaccountfor 49%ofGeneralFundappropriations.Appropriationsforpersonnelservicesfollowcloselywith40% ofthetotal.Therewerenosignificantdollarchangesinexpendituresforsixappropriation classificationsfor2014.Thenewcapitalizationthresholdof$10,000willresultinhighersupplies costs.CapitaloutlayreflectstheannualinternalrentthroughtheCentralEquipmentFund,including thepurchaseofafiretruckin2014. Thefollowingtableandgraphprovideperspectiveonexpendituresandotherusesforthevarious GeneralFundclassificationsinthe2014budget: Classification 2013 2014 %Change PersonnelServices2,769,569$2,680,760$-3.2% Supplies507,675536,8755.8% OtherServices&Charges3,324,6663,323,6650.0% CapitalOutlay105,059125,70019.6% OperatingTransfers80,00093,00016.3% Total6,786,969$6,760,000$-0.4% 2014GeneralFundAppropriations Personnel Services 40% Supplies 8% Capital Outlay 2% Other Services& Charges 49% Operating Transfers 1% ExpendituresandOtherUses-2014 9 Revenues TherevenuesandothersourcestosupportGeneralFundexpendituresandotherusesareclassified asfollows: Classification 2013 2014 %Change PropertyTaxes5,540,000$5,497,000$-0.8% Franchise&OtherTaxes236,500236,5000.0% Licenses&Permits270,980273,1800.8% IntergovernmentalRevenues284,509289,6771.8% ChargesforServices272,610281,2733.2% Fines&Forfeits1001000.0% SpecialAssessments3003000.0% Miscellaneous181,970181,9700.0% OperatingTransfers----- Total6,786,969$6,760,000$-0.4% 2014GeneralFundRevenuesandOtherSources Whilethetaxlevyincreased3.2%overall,theGeneralFund’sportionofitshrunkby.8%.Licenses& permitsreflectaconstantlevelofresidentialdevelopment,whichreboundedmodestlyin2013. Supportingthestreetlightingactivity,franchiseandothertaxesareexpectedtoberemainthe same.Intergovernmentalrevenuesarerecoveringslightlyalongwiththestate’sfinances.Charges forservicesreflectminorincreasesforpublicsafetyservices.Miscellaneousrevenues,which includeinvestmentearnings,arepredictedtobestable. Thepropertytaxlevygenerates81%oftheGeneralFundrevenues.Otherthanfranchisefees,the citydoesnothavetheabilitytoimposeothertaxes,suchaslocalsalestaxesorincometaxes. Therefore,thecitywillcontinuetobedependentonpropertytaxrevenueasitsmajorsourceof futurerevenues. SPECIALREVENUEFUNDS ThecityofMonticellocurrentlyoperatesspecialrevenuefundsforeconomicdevelopment,park andpathway,communitycenter,anddeputyregistraractivities.Specialrevenuefundsalsoinclude theMinnesotaInvestmentFund,butitwilllikelyseeverylittleactivityin2014. LiketheGeneralFund,thespecialrevenuefundbudgetsaresetataleveltomaintainservices.A portionofthetaxlevysupportscommunitycenteroperationsanddebtservice.Taxincrements supporteconomicdevelopmentactivitiesbuttheiruseisgenerallyrestrictedtospecificareas.In addition,ParkandPathwayDedicationFundhaslessrevenuescominginbecauseoflessnewfee- payingdevelopment.IntheEconomicDevelopmentFund,taxincrementsdeclinedfrom decertificationoftaxincrementdistrictsorparcelswithindistricts.Completionofthecommunity centerprojectresultedinlessoperatingtransfersneededfromotherfundstosupporttheproject. 10 Thebulkofthe2013and2014operatingtransferswentorwillgotoacquireBertramChainofLakes property. Thefollowingtablesdisplaythechangeinrevenuesandothersourcesandthechangein expendituresandotherusesforspecialrevenuefundsin2014: Classification 2013 2014 %Change PropertyTaxes1,170,000$1,390,000$18.8% TaxIncrements681,240672,494-1.3% ChargesforServices1,662,7501,729,8004.0% Miscellaneous157,600258,66464.1% OperatingTransfers780,000637,500-18.3% Total4,451,590$4,688,458$5.3% 2014SpecialRevenueFundRevenues&OtherSources Classification 2013 2014 %Change PersonnelServices1,360,036$1,286,482$-5.4% Supplies242,050257,8506.5% OtherServices&Charges466,111587,91226.1% CapitalOutlay1,017,465910,443-10.5% OperatingTransfers1,649,4031,368,353-17.0% Total4,735,065$4,411,040$-6.8% 2014SpecialRevenueFundAppropriations DEBTSERVICEFUNDS Thecity'sdebtservicefor2014is$6,064,853or$42,789lessthantheprioryear,excludingthe $10,803,475escrowpaymenttoredeem2005debtin2013.Fundingfordebtservicecomesfrom specialassessments,taxincrements,propertytaxesandtransfersfromthethreeaccessfundsand theWaterFund.Additionalresourcesmaybeneededfordebtservicebecausetwoparcelswith $1.7millioninspecialassessmentsaredelinquent.Reservesinthefundsaffectedbythedelinquent assessmentswillbedrawndownuntilotherresourcesbecomeavailable.Furthertransfersfrom utilityfundswillsupplanttransfersfromdepletedandclosedaccessfunds.Theoutstandingdebtfor debtservicefundsis$22,491,653.Thecity'sbondratingfromMoody’sInvestorsServicesisan"A2". CAPITALPROJECTFUNDS Thebudgetforcapitalprojectfundsarebasedonthe2014projectexpenditureslistedinthecity's five-yearcapitalimprovementplan.Thecity'sfive-yearcapitalimprovementplanisincludedina latersectionofthisreport.Thecityhastwomajorprojectsmovingforwardin2014:TH25/CSAH75 intersection,FallonAvenueoverpass.Bothmulti-yearprojectswillbefundedinitiallybystatestreet aid--intergovernmentalrevenue. 11 ENTERPRISEFUNDS Totalenterpriserevenuesandothersourcesareestimatedat$10,260,608for2014.The2013 budgetincluded$6.1millionindebtproceedsandanequalamountincapitaloutlayforsewage treatmentplantupgrades.Operatingtransfersfromotherfundsinclude$350,000fromanother enterprisefund:LiquorFundtoFiberOpticsFund.Saleofgoodsrepresentsincreasesinsalesatthe city’smunicipalliquorstore. Classification 2013 2014 %Change SaleofGoods4,461,500$4,944,500$10.8% Licenses&Permits3,7003,7000.0% ChargesforServices4,567,1004,667,1002.2% SpecialAssessments150,000150,0000.0% Miscellaneous224,570145,308-35.3% OperatingTransfers220,000350,00059.1% DebtProceeds6,100,000--100.0% Total15,726,870$10,260,608$-34.8% 2014EnterpriseFundRevenues&OtherSources Classification 2013 2014 %Change PersonnelServices1,577,521$1,384,629$-12.2% Supplies3,945,6354,316,3359.4% OtherServices&Charges2,285,7992,414,3605.6% CapitalOutlay7,304,100802,764-89.0% DebtService120,000346,220188.5% OperatingTransfers633,5002,184,335244.8% Total15,866,555$11,448,643$-27.8% 2014EnterpriseFundAppropriations Personnelservicesdeclinedwithstaffingchangesinpublicworksandsuppliesincreasedwith reclassificationofsomeexpendituresandthechangeinthecapitalizationthreshold.Thisthreshold change,from$5,000to$10,000,meansmoreitemswillbechargedtosuppliesandfeweritemswill bechargedtocapitaloutlay.Otherservicesandchargesincreasedmodestly.Debtservicewill increasemarkedlyastheSewageFundstartstomakeprincipalandinterestpaymentsonthe2013 WastewaterTreatmentBonds.Higheroperatingtransfersfromutilityfundssupplantthedepletion ofimpactfeesintheSanitarySewerandWaterAccessfunds.Theexpected$5.75millionsettlement onthedefaultedtelecommunicationsbondsisnotincludedinthe2014budget. INTERNALSERVICEFUNDS Twointernalservicefundswereinitiatedin2013:IT(InformationTechnologies)ServicesFund, CentralEquipmentFund.Thefundsoperateonacost-recoverybasisbutthetimehorizonforthe 12 basisdiffersgreatly.TheITServicesFundisrelativelylesscapitalintensivewithannualcapital outlaysinthe$20,000to$30,000range.TheCentralEquipmentFundcanincurdebttomakemajor purchasesandthenrecoverthosecoststhroughannualrentalpaymentstobenefitting departments.Theoretically,annualdepreciationandinflationforeachcapitalassetwillbeusedin calculatingannualrentalpayments,whichwillprovidefundsformajorequipmentreplacement throughannualoperatingbudgets.Exceptfordebtproceeds,internalservicefundrevenuesare includedinexpendituresofotherfunds. FUNDBALANCES Forthemostpart,cityfundbalancesareexpectedtobestableforitsmainoperatingfundsin2014. Oneexception,theSewageFundwilltransfernearly$1.3milliontodebtservicefundsfor retirementofdebtrelatedtosewagesystemimprovements.Inprioryears,impactfeessupported thedebtservice.Thisismajordeparturefrom2012,wherefundbalancesweregreatlyimpactedby theretirementof$6millionininterfundloans.Nointerfundloanswereincludedinthe2013or 2014budgets.Variousdebtservicefundswillseedeclinesasaresultofdelinquentspecial assessments.Capitalprojectfundswillexperienceadeclineinreservesastheyprovidefinancingfor non-recurringcapitalexpenditures. Totalexpendituresexceedtotalrevenuesby$2.7millioninthe2014budget.However,this includesthe$1.3milliontransferfromtheSewageFundfordebtserviceandtheotherdrawson reservesindebtservicefunds.Further,reserveswillprovidenearly$900,000infinancingfornon- recurringexpendituresincapitalprojectfunds.Thecityadoptedbalancedbudgetsforboththe GeneralFundandtheMonticelloCommunityCenterFundfor2014.Moneyforthesettlementof thetelecommunicationbondswillcomefromjudgmentbonds,withthefirstpaymentexpectedin December2015. CHALLENGESINCONTEXT Thepreparationofthisbudgetreflectsthecollisionofbothshort-termandlong-termchallenges. Thelackofanticipatedeconomicdevelopmentfromaprolongedrecessionandanemicrecovery continuestohaveasignificantimpactonthecity’sfinances.First,lowimpactfeerevenuehas causedthecitytolookatotherfinancingoptions,suchasusingutilityfundrevenues,tomakedebt servicepayments.Thecouncil’sgoalofmaintainingalowtaxlevymakesthisanevengreater challenge.Second,thecitywillseeasignificantdropinthetaxlevyneededtosupportdebtservice paymentsin2016.However,in2014thereisaneedforahigherlevytosupportdebtservice becauseofthedrawonreservesinadebtservicefundsupportingcommunitycenterdebt.Still,the citymustmoveforwardandplansforanoverpassarenearthetopofthelistforcapital expenditures.Finally,forthepasttwoyears,uncertaintysurroundingtherestructuringof$26.4 millionintelecommunicationrevenuebonds(nowindefault)hasrepresentedasignificant constrainttolong-rangeplanning.Withatentativesettlementawaitingcourtapproval,thecityis optimisticaboutthefutureanditsabilitytomeetthehighexpectationsofademandingcitizenry. 13 DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presenteda DistinguishedBudgetPresentationAwardtotheCityofMonticello,Minnesotaforitsannualbudget forthefiscalyearbeginningJanuary1,2013.Inordertoreceivethisaward,agovernmentalunit mustpublishabudgetdocumentthatmeetsprogramcriteriaasapolicydocument,asan operationsguide,asafinancialplan,andacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuesto conformtoprogramrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityfor anotheraward. CONCLUSION Conservationofcityfinancialresourcescontinuestobeaveryimportantobjective.Thebudgetis theprimetoolinmakingsurelimitedresourcesarewiselyutilized.Itismybeliefthatthe2014 budgetallowsthecitytodeliverexcellentmunicipalservicesinacosteffectiveandefficientmanner atcurrentlevels.The2014budgetisaproductofcollectiveeffortsbythecitycouncil,staffand variousotherstakeholders.Theircommitment,goodjudgmentandexpertiseareinvaluabletothe budgetprocess. Sincerely, JeffO’NeillWayneW.Oberg CityAdministratorFinanceDirector 14 COMMUNITY, DEMOGRAPHIC, AND STATISTICAL INFORMATION The city of Monticello was organized as a municipality in 1856. Monticello is located approximately 45 miles northwest of the Minneapolis-St. Paul metropolitan area along the I-94 corridor in Wright County. The 2010 U. S. Census estimated Monticello's population at 12,759 and the city encompasses an area of 8.94 square miles. The city operates under a statutory form of government. The mayor and four councilors (together known as "city council") govern the city. The councilors are each elected to four-year terms and the mayor a two-year term. The mayor presides over and is a voting member of the City Council. The mayor is the chief authority for administering city government and appoints department heads, various board members and commission members. The City Council is the legislative body and meets regularly twice a month. The Council's main responsibilities are to appropriate funds, set salaries, adopt ordinances, and approve budgets. Monticello has a varied business community with a healthy mix of retail and manufacturing. The city was hit hard by the recession and is slowly recovering. City unemployment rates are similar to that of the state, but the state’s rate has been slightly better lately (see the following table). Average Employment Year Wright County Wright County State of Minnesota 2004 61,542 4.9%4.6% 2005 63,135 4.6%4.1% 2006 65,760 5.0%4.1% 2007 66,593 5.9%4.6% 2008 68,103 7.6%5.4% 2009 67,767 8.9%8.0% 2010 68,905 8.0%6.8% 2011 69,658 6.8%7.4% 2012 70,117 6.2%5.4% 2013 70,355 5.2%4.6% HISTORICAL EMPLOYMENT/UNEMPLOYMENT DATA (Rates are not compiled for individual communities within counties) Average Unemployment Home to one of the two state nuclear generation plants, Monticello’s largest employer is Xcel Energy. Agri- giant Cargill also maintains a strong presence in the city. The following table lists the top ten employers in the community. Employer Employees Xcel Energy (Northern States)2,000 ISD No. 882 (Monticello)544 New River Medical Center 500 Walmart Supercenter 325 Cargill Kitchen Sol. (Sunny Fresh)250 Cub Foods 180 Home Depot 160 Ultra Machine Corporation 140 Standard Iron & Wire Works 100 City of Monticello 100 TOP TEN CITY EMPLOYERS 15 Monticello’s population and households are .2% of state’s total for both measures. With a Wal-Mart, Target, and Home Depot, it is no surprise that retail sales per person are higher than the state average. The following table contains selected facts on the city: People QuickFacts Monticello Minnesota Population, 2012 estimate 12,964 5,379,646 Population, 2010 12,759 5,303,925 Population, percent change, April 1, 2010 to July 1, 2012 1.6%1.4% Persons under 5 years, percent, 2010 10.1%6.7% Persons under 18 years, percent, 2010 30.8%24.2% Persons 65 years and over, percent, 2010 9.5%12.9% Female persons, percent, 2010 50.8%50.4% White persons, percent, 2010 (a) 92.6%85.3% Total number of firms, 2007 1,258 496,657 Retail sales per capita, 2007 $26,337 $13,751 Land area in square miles, 2010 8.94 79,626.74 Persons per square mile, 2010 1,427.2 66.6 Housing units, 2010 4,973 2,347,201 Homeownership rate, 2008-2012 71.8%73.0% Housing units in multi-unit structures, percent, 2008-2012 23.2%21.6% Median value of owner-occupied housing units, 2008-2012 $171,300 $194,300 Households, 2008-2012 4,738 2,101,875 Persons per household, 2008-2012 2.65 2.46 Per capita money income in the past 12 months (2012 dollars)$27,447 $30,656 Median household income, 2008-2012 $69,156 $59,126 The nuclear plant accounts for approximately 40% of city’s met tax capacity. Xcel’s tax capacity and the council’s conservative tax levy philosophy are main reasons the city tax capacity rate is the second lowest in Wright County. Indeed, recent upgrades to the Xcel plant resulted in a 15.1% decline in Monticello’s tax rate for 2013. The tax base is about one-third residential and two-thirds commercial. The following table lists the tax rates for each city in Wright County, Minnesota: 2010 2011 2012 2013 2014 2013-14 2013-14 City Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate Change Change % City of St. Michael 30.581 34.421 39.110 43.968 42.323 -1.645 -3.7% City of Monticello 45.822 46.729 49.773 42.262 44.672 2.410 5.7% City of Otsego 29.342 34.014 41.454 46.229 44.853 -1.376 -3.0% City of Buffalo 35.989 38.448 47.076 51.808 49.976 -1.832 -3.5% City of Albertville 36.705 41.933 46.645 51.945 51.089 -0.856 -1.6% City of Hanover 40.924 44.398 48.719 52.481 52.010 -0.471 -0.9% City of Delano 42.420 46.610 52.587 56.569 56.601 0.032 0.1% City of Rockford 46.142 50.353 54.427 59.516 59.008 -0.508 -0.9% City of Maple Lake 46.251 45.905 54.242 56.299 60.025 3.726 6.6% City of Montrose 42.681 47.737 55.864 66.008 60.273 -5.735 -8.7% City of Dayton 50.867 48.567 57.817 64.169 65.498 1.329 2.1% City of Annandale 48.483 54.658 64.886 73.137 71.447 -1.690 -2.3% City of Cokato 59.938 63.498 77.094 80.369 74.883 -5.486 -6.8% City of Howard Lake 46.606 53.823 68.778 74.853 77.140 2.287 3.1% City of Clearwater 68.427 75.263 86.244 87.642 87.053 -0.589 -0.7% City of Waverly 66.155 68.759 82.562 90.974 92.516 1.542 1.7% City of South Haven 85.330 93.540 117.591 132.345 139.007 6.662 5.0% CITY TAX RATES IN WRIGHT COUNTY, MINNESOTA 16 Monticello grew by approximately one-third over the last ten years. The city has ample undeveloped commercial and residential real estate and is position well to benefit from more urban flight from the Twin Cities. Access to major transportation corridors makes the city an ideal location for future growth. The following table includes population statistics over the last ten years: Year Polulation Change 2004 10,211 435 2005 10,662 451 2006 11,136 474 2007 11,253 117 2008 11,366 113 2009 11,476 110 2010 11,501 25 2011 12,759 1,258 2012 12,935 176 2013 12,964 29 The above statistics reflect a more accurate Census count, which is the 2011 total. The other counts are from the state demographer. 17 MAPOFMAPOF MONTICELLOMONTICELLO,MINNESOTA,MINNESOTA,MINNESOTA 18 COREVALUES Thisdocumentispreparedbythecity’sfinancedepartment.Thecorevaluesofthedepartmentservea guideforthewaywedeliverinternalandexternalcustomerservices.Thesecorevaluesarehowwe conductourselvesandwhatcreatethecultureofourdepartment. Competent (Howwellwedoourjobs) Beopen,hardworking,reliable,innovative,and accountabletothepublic. Courteous (Howwellwetreatothers) Workunselfishlyinapositive,politeandprofessional mannerforourcommunityanditscitizens. Cooperative (Howwellweworktogether) Leadbyexampleandworktogether toachievethebestresult. 19 VISION,MISSION,ANDGOALS Vision:Monticello,Minnesota:Monticellowilluse,preserveandenhance itsassetstobuildathrivingcommunity inwhichtolive,work,shopandplay. Mission:Toenhancethequalityoflifethroughexcellenceinpublicservice. Goals: 1.Provideprofessional,transparent,andethicalpublicservices whichareresponsivetothecommunityandwithinavailable resources. 2.Buildastrongteamofelectedofficials,staffandcitizens. 3.Supportthedevelopmentofabusinessandfamily-friendly communitythatissafe,sustainable,andconnected. 4.Committoastrongfinancialposition. 5.Approachtoday’schallengeswithasenseofurgencyand“can- do”attitude. 6.Strivetodoourbestwhenencounteringandrespondingto futurechallenges. 20 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.WastewaterTreatmentPhosphorusReductionFacilityPlan–Adopted2014 3.OverallStreetReconstructionProgram–Adopted2004,updatepending. 4.Area5StreetReconstructionFeasibilityReport–Pending FinancialPlans: 1.AnnualBudget-AdoptedeachDecember. 2.CapitalImprovementsPlan-Updatedandadoptedeachyear;mostrecentlyfor2014- 2018. 21 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. 22 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. 23 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 24 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. 25 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. 26 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. 27 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 28 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. 29 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 30 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. 31 ETHICSANDCONFLICTSOFINTEREST Officersandemployeesinvolvedintheinvestmentprocessshallrefrainfrompersonalbusiness activitythatcouldconflictwiththeproperexecutionandmanagementoftheinvestmentprogram, orthatcouldimpairtheirabilitytomakeimpartialdecisions.Employeesandinvestmentofficials shalldiscloseanymaterialinterestsinfinancialinstitutionswithwhichtheyconductbusiness.They shallfurtherdiscloseanypersonalfinancial/investmentpositionsthatcouldberelatedtothe performanceoftheinvestmentportfolio.Employeesandofficersshallrefrainfromundertaking personalinvestmenttransactionswiththesameindividualwithwhombusinessisconductedon behalfofthecity. POLICYREVISIONS Thecashmanagementandinvestmentpolicywillbereviewedperiodicallybythecity administrator/clerk-treasurerandfinancedirectorandmaybeamendedbycitycouncilactionas conditionswarrant. 32 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 33 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. 34 RevenueSources:Debtservicefundsaresupportedwithspecialassessments,accessandutility fundtransfers,propertytaxes,andinterestoninvestments. CapitalProjectFunds:Capitalprojectfundsareusedtoaccountforfinancialresourcestobeusedforthe acquisitionorconstructionofmajorcapitalfacilities(otherthanthosefinancedbyproprietaryfunds). RevenueSources:Capitalprojectfundsaresupportedbylongtermdebtproceeds, donations,stateandfederalgrants,andoperatingtransfersfromotherfunds. PROPRIETARYFUNDTYPES EnterpriseFunds:Enterprisefundsareusedtoaccountforoperationsthatarefinancedandoperatedina mannersimilartoprivatebusinessenterprises--wheretheintentofthegoverningbodyisthatthecosts (expenses,includingdepreciation)ofprovidinggoodsorservicestothegeneralpubliconacontinuingbasis befinancedorrecoveredprimarilythroughusercharges.Enterprisefundsaccountforthecity'swater, sewage,liquorstore,cemetery,andfiberopticsservices. RevenueSources:Enterprisefundsaresupportedthroughusercharges,saleofgoods, penalties,andinterestincome. InternalServiceFunds:Internalservicefundsareusedtoaccountforthefinancingofgoodsor servicesprovidedbyonedepartmenttootherdepartmentsonacost-reimbursementbasis.Internal servicefundswillaccountforthecity'scapitalequipmentinternalleasingprogramandITService. Thesefundswereauthorizedforimplementationin2013. RevenueSources:Internalservicefundsaresupportedthroughchargestootherbudget unitsbasedonleasepaymentsorlevelofprovidedservices. FIDUCIARYFUNDTYPES TrustFunds:Trustfundsareusedtoaccountforassetsheldbyagovernmentalunitinatrusteecapacity. Theseinclude(a)expendabletrustfunds,(b)permanenttrustfunds,and(c)pensiontrustfunds.Thecity doesnothaveanyfiduciaryfunds. RevenueSources:Trustfundsaresupportedbydonationsandinterestincome. FUNDBALANCESINEACHFUNDTYPE Ingovernmentalfunds,fundbalanceistypicallydefinedascurrentassetslesscurrentliabilities.Unlike governmentalfunds,enterprisefundsfocusonthedeterminationofoperatingincome,changesinnetposition (orcostrecovery),financialposition,andcashflows.Enterprisefundsuseanaccrualbasisofaccountingfor financialreportingpurposes.Amodifiedaccrualbasiswillbeusedforbudgetingpurposesinthisreport. Consequently,thebottomlineforeachenterprisefundislabeledfundbalanceratherthannetposition,which includescapitalassets,long-termdebtandothernoncurrentitems.Fundbalanceinenterprisefundsisroughly thesameasworkingcapitalinenterprisefund. 35 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 operatingexpenses.Theaccountingandbudgetingsystemsprovidedetailforthesespecificsub-classes. However,appropriationcontrolisexercisedonlyatthebudgetunitlevel. 36 BUDGETCALENDAR/PROCEDURES Thefollowingbudgettimelineoutlinestheprocessthecitycustomarilyfollowsforcreationand adoptionoftheannualbudget. Date Activity June10,2013 2014-2018capitalequipment/projects(CIP)worksheetsandbudget worksheetstodepartmentheads. June24,2013 WorkshopwithcitycouncilandstafftoSet2013/14goalsand priorities. June,2013 Departmentheadsmeetwithvariousadvisoryboardsand commissionsforinputinto2014preliminarybudgetandCIP. July12,20132014-2018CIPandbudgetworksheetsduetofinancedepartment July,2013 Departmentheadsmeetwithcityadministrator,andfinancestaffto develop2014preliminarybudgetandCIP. July23,2013Councilworkshoptoreviewdraftdepartmentbudgets. August22,2013 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIP. MiddleofAugust,2013 Financedepartmentdevelopsrevenueestimatesand2014preliminary propertytaxlevy. August26,2013 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIPcontinued. September9,2013Budgetworkshopwithcitycouncilandstaff. September9,2013 Counciladopts2014preliminarypropertytaxlevy. September13,20132014preliminarypropertytaxlevycertifiedtoWrightCountyauditor. October/November,2013 Departmentheadsmeetwithcityadministratorandfinancestaffto develop2014proposedBudgetandfinalpropertytaxlevy. December9,2013Counciladopts2014budgetandpropertytaxlevy. December27,2013 Citycertifiesfinal2014propertytaxlevytoWrightCountyauditor. January1,20142014fiscalyearbegins. 37 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. 38 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. 39 ORGANIZATIONCHART CITY OF MONTICELLO Citizens 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 Sheriffs 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 40 ALLFUNDSSUMMARYBYFUNDTYPE SpecialDebtCapitalInternal2013 GeneralRevenueServiceProjectEnterpriseServiceTotal FundFundsFundsFundsFundsFundsBudget FundBalance/WorkingCapital-Jan.13,515,000$8,617,491$2,494,464$4,853,508$8,980,191$855,204$29,315,858$ RevenuesandOtherSources PropertyTaxes5,497,000$1,390,000$1,263,000$-$-$-$8,150,000$ TaxIncrements-672,494----672,494 Franchise&OtherTaxes236,500--130,000--366,500 SaleofGoods----4,944,500-4,944,500 Licenses&Permits273,180---3,700-276,880 IntergovernmentalRevenues289,677--1,670,000--1,959,677 ChargesforServices281,2731,729,800-50,0004,667,100376,9287,105,101 Fines&Forfeits100----100 SpecialAssessments300756,375283,000150,000-1,189,675 Miscellaneous181,970258,664230,20050,000145,3085,210871,352 ContributedCapital----86,070-86,070 OperatingTransfersIn-637,5003,478,988-350,000-4,466,488 DebtProceeds------- TotalRevenuesandOtherSources6,760,000$4,688,458$5,728,563$2,183,000$10,346,678$382,138$30,088,837$ ExpendituresandOtherUses PersonnelServices2,680,7601,286,482--1,384,629-5,351,871 Supplies536,875257,850--4,316,33526,9505,138,010 OtherServices&Charges3,323,665587,912-25,0002,414,360215,7616,566,698 CapitalOutlay125,700910,443-2,275,000802,764694,1974,808,104 DebtService--6,064,853-346,22066,1206,477,193 OperatingTransfersOut93,0001,368,353-820,8002,184,335-4,466,488 TotalExpendituresandOtherUses6,760,0004,411,0406,064,8533,120,80011,448,6431,003,02832,808,364 NetChangein FundBalance/WorkingCapital-$277,418$(336,290)$(937,800)$(1,101,965)$(620,890)$(2,719,527)$ FundBalance/WorkingCapital-Dec.313,515,000$8,894,909$2,158,174$3,915,708$7,878,226$234,314$26,596,331$ AllFUNDSSUMMARY-BYFUNDTYPE Annually,thecityadoptsabalancedbudgetfortheGeneralFundandtheMonticelloCommunityCenter Fund(specialrevenuefund).Intheotherfunds,fundbalances/workingcapitalincreaseordecreasewith surplusesordeficits,respectively. CapitalProjectFundscommonlyaccumulateresourcesinonebudgetperiodandexpendthoseresources overmultiplebudgetperiods. TheSewageFund,oneoffiveenterprisefunds,accountsformostofthenegativenetchangeinworking capitalasplannedtransferstodebtservicefundsoffsetthedeclineofimpactfees. Internalservicefundsprovideservicestootherfundsandtypicallyfunctiononacostrecoverybasis.The cityhastwo:ITservicesFundandCentralEquipmentFund.TheCentralEquipmentFundissueddebtand receivedanoperatingtransferin2013.Thesefundswillbeusedforcapitalassetacquisitonsin2014. 41 ALLFUNDSSUMMARY-BYYEAR TOTALALLFUNDS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes7,304,370$7,319,010$8,157,147$7,900,000$7,900,000$8,150,000$3.2% TaxIncrements1,165,2031,050,5631,052,110681,240966,934672,494-1.3% Franchise&OtherTaxes315,761321,584347,934366,500366,500366,5000.0% SaleofGoods4,477,6514,653,3854,854,7984,461,5004,848,5004,944,50010.8% Licenses&Permits231,370258,526276,168274,680324,680276,8800.8% IntergovernmentalRevenues717,906881,560576,581918,209918,2091,959,677113.4% ChargesforServices6,033,3697,087,8756,826,9556,656,8757,176,3527,105,1016.7% Fines&Forfeits2558514,3381001001000.0% SpecialAssessments1,621,4412,009,1842,061,1911,336,2451,469,5551,189,675-11.0% Miscellaneous2,033,5524,078,7972,080,8031,194,9651,096,242871,352-27.1% ContributedCapital143,433----86,070--- OperatingTransfers5,237,7104,041,68013,345,9075,198,3747,187,1904,466,488-14.1% DebtProceeds15,022,42014,655,3761,004,6986,100,0003,500,000--100.0% TOTALREVENUES44,304,441$46,357,625$40,598,630$35,088,688$35,754,262$30,088,837$-14.2% EXPENDITURES PersonnelServices5,266,581$5,437,475$5,482,262$5,707,126$5,604,969$5,351,871$-6.2% Supplies5,251,7114,992,7204,573,5864,695,3605,080,8335,138,0109.4% OtherServices&Charges7,789,2298,203,1467,624,2286,101,5766,435,9206,566,6987.6% CapitalOutlay8,064,1904,669,5323,809,78611,383,9597,937,2244,808,104-57.8% DebtService9,331,7018,280,6627,512,96417,031,11717,189,6806,477,193-62.0% OperatingTransfers5,230,9645,720,85112,906,1285,198,3747,187,1904,466,488-14.1% TOTALEXPENDITURES40,934,376$37,304,386$41,908,954$50,117,512$49,435,816$32,808,364$-34.5% FUNDBALANCE-JANUARY131,884,432$35,254,497$44,307,736$42,997,412$42,997,412$29,315,858$ Excess(Deficiency)of RevenuesoverExpenditures3,370,0659,053,239(1,310,324)(15,028,824)(13,681,554)(2,719,527) FUNDBALANCE-DECEMBER3135,254,497$44,307,736$42,997,412$27,968,588$29,315,858$26,596,331$ Intergovernmentalrevenueswillincreasein2014asthecityreceivesmorestateaidforstreetprojects. Specialassessmentsdeclinebecauseofprepaymentsin2013.Operatingtransfersinandoutdecline becausetwoaccessfundsclosedtoeach’srespectiveenterprisefund.Reductioninexternalresources neededbytheFiberOpticsFundalsocontributed.Nodebtissuancesareplannedfor2014.However, settlementbondsmaybesoldtosatisfyclaimsoftelecommunicationbondholders.Saleofgoods increasedintheLiquorFundtomoreaccuratelyreflectthegrowthtrendinsales. Capitalexpenditures(outlay)arebudgetedtoincreasesignificantlyin2014,primarilytheresultoflower expendituresintheSewageFund(sewageplantupgrade).Capitalexpendituresreflectthedisbursement offundsforacquisitionorreplacementofassetswithlong-lives(benefittwoormoreaccounting periods)andtheyusuallyhavesignificantpricetags.Incontrast,currentexpendituresonlybenefitthe currentornextaccountingperiodandusuallyhavemuchsmallerpricetags.Debtserviceexpenditures willdeclineconsiderablybecauseofthe$10millionredemptionof2005Ageneralobligationbondswith escrowedproceedsfromthesaleof2011generalobligationbonds. Capitalexpenditurescanberecurringornon-recurringinnature.Thesewageplantupgradewouldbean exampleofnon-recurringcapitalexpenditure.Ontheotherhand,thecitybudgetsannually$200,000- $500,000($400,000in2014)toreplacestreets,usuallythroughtheStreetReconstructionFund.This wouldbeanexampleofarecurringcapitalexpenditure.Recurringcapitalexpendituresusuallyhavea pay-as-you-gofundingsource(enterprisefunds)andnon-recurringcapitalexpendituresusuallyhave debtasafundingcomponent. 42 CHANGESINFUNDBALANCE/WORKINGCAPITAL ProjectedBeginningProjectedEnding FundBalance/EstimatedFundBalance/ WorkingCapitalRevenuesAppropriationsWorkingCapital GeneralFund 3,515,000$6,760,000$6,760,000$3,515,000$ SpecialRevenueFunds EconomicDevelopment7,192,854967,908720,9577,439,805 DeputyRegistrar112,425381,050380,583112,892 MinnesotaInvestment1,091,05825,000-1,116,058 MonticelloCommunityCenter123,4002,815,0002,815,000123,400 Park&PathwayDedication97,754499,500494,500102,754 TotalSpecialRevenueFunds 8,617,4914,688,4584,411,0408,894,909 DebtServiceFunds 2007AG.O.ImprovementBond133,311662,022736,10059,233 2008AG.O.RevenueRefunding(2,198)1,040,5001,037,860442 2008BG.O.SewerRefunding565,463955,0001,049,593470,870 2010AG.O.ImprovementBond663,377296,948360,650599,675 2011AG.O.RefundingBond1,134,5112,774,0932,880,6501,027,954 TotalDebtServiceFunds 2,494,4645,728,5636,064,8532,158,174 CapitalProjectFunds CapitalProject475,8541,670,0001,785,000360,854 ClosedBondFund812,245288,000494,500605,745 StormwaterAccess1,176,94370,000366,300880,643 StreetLightingImprovement675,087130,00075,000730,087 StreetConstruction1,713,37925,000400,0001,338,379 TotalCapitalProjectFunds 4,853,5082,183,0003,120,8003,915,708 EnterpriseFunds Water4,450,3681,373,6201,430,4524,393,536 Sewage3,996,4292,172,9503,170,5642,998,815 Liquor296,7594,954,5004,998,455252,804 Cemetery18,88325,60829,17215,319 FiberOptics217,7521,820,0001,820,000217,752 TotalEnterpriseFunds 8,980,19110,346,67811,448,6437,878,226 InternalServiceFunds ITServices21,963252,808252,71122,060 CentralEquipment833,241129,330750,317212,254 TotalInternalServiceFunds 855,204382,1381,003,028234,314 TotalAllFunds 29,315,858$30,088,837$32,808,364$26,596,331$ FiscalYear2014 CHANGESINFUNDBALANCE/WORKINGCAPITAL Thefundbalances/workingcapitalofallthecity’smajorfunds(GeneralFund,allenterprisefunds-except thecemetery,andspecialrevenuefundsforthecommunitycenterandtheeconomicdevelopment authority)areexpectedtoremainstablewithbalancedbudgets(revenuesequalexpenditures).One exception:TheSewageFundwillexperienceaworkingcapitaldeclineasaresultoftransferstodebt servicefundsfordebtpreviouslysupportedbyaccessfees.Equipmentpurchasesinthenon-major CentralEquipmentFundwillconsiderablyreduceworkingcapitalforthefundin2014. 43 FUNDBALANCEHISTORY AmendedAdopted ActualActualActualBudgetProjectedBudget 201020112012201320132014 GeneralFund 5,657,523$5,001,093$3,478,507$3,478,507$3,515,000$3,515,000$ SpecialRevenueFunds EconomicDevelopment7,240,1547,478,6517,461,5547,081,4187,192,8547,439,805 DeputyRegistrar228,245250,624110,764177,425112,425112,892 MinnesotaInvestment952,9071,022,4701,066,0581,091,0581,091,0581,116,058 MonticelloCommunityCenter1,155,850978,008179,500179,500123,400123,400 Park&PathwayDedication446,187(141,890)442,754447,75497,754102,754 TotalSpecialRevenueFunds 10,023,3439,587,8639,260,6308,977,1558,617,4918,894,909 DebtServiceFunds 2007AG.O.ImprovementBond126,500216,886316,936161,401133,31159,233 2008AG.O.RevenueRefunding674,416408,315199,422302(2,198)442 2008BG.O.SewerRefunding790,797722,832660,704565,463565,463470,870 2010AG.O.ImprovementBond(89,956)517,835630,122663,377663,377599,675 2011AG.O.RefundingBond(2005A)1,220,14911,260,37911,145,710252,2581,134,5111,027,954 TotalDebtServiceFunds 2,721,90613,126,24712,952,8941,642,8012,494,4642,158,174 CapitalProjectFunds CapitalProject(1,532,176)(1,362,621)795,453685,453475,854360,854 ClosedBondFund315,891514,1171,116,150962,245812,245605,745 SanitarySewerAccess (Closed)4,081,4773,135,7491,866,876712,300-- StormwaterAccess2,113,4591,803,3831,468,7431,196,9431,176,943880,643 WaterAccess (Closed)537,370229,24922,91048,530-- StreetLightingImprovement929,677965,618716,387550,087675,087730,087 StreetConstruction3,000,8303,330,8971,907,3791,173,3791,713,3791,338,379 CapitalOutlayRevolving (Closed)1,022,6991,055,438720,307489,697-- TotalCapitalProjectFunds 10,469,2279,671,8308,614,2055,818,6344,853,5083,915,708 EnterpriseFunds Water3,379,9973,910,4844,608,6924,455,3684,450,3684,393,536 Sewage2,448,7902,742,7063,189,2143,137,7293,996,4292,998,815 Liquor3,098,7303,570,876649,665711,759296,759252,804 Cemetery22,47821,27619,35318,88318,88315,319 FiberOptics(2,567,497)(3,324,639)224,252227,752217,752217,752 TotalEnterpriseFunds 6,382,4986,920,7038,691,1768,551,4918,980,1917,878,226 InternalServiceFunds ITServices----21,96322,060 CentralEquipment---(500,000)833,241212,254 TotalInternalServiceFunds ---(500,000)855,204234,314 TotalAllFunds 35,254,497$44,307,736$42,997,412$27,968,588$29,315,858$26,596,331$ FUNDBALANCE/WORKINGCAPITALHISTORY FiscalYearEndedDecember31, 44 TAXLEVY&TAXCAPACITYHISTORY 20102011201220132014 GeneralFund 5,423,114$5,407,872$5,451,248$5,540,000$5,497,000$ PercentChange1.7%-0.3%0.8%1.6%-0.8% SpecialRevenueFunds MonticelloCommunityCenter*1,092,3531,100,0001,150,0001,170,000$1,390,000 TotalSpecialRevenueFunds 1,092,3531,100,0001,150,0001,170,0001,390,000 PercentChange-15.8%0.7%4.5%1.7%18.8% DebtServiceFunds 2011AGORefundingBonds(2005A)248,724244,131251,906245,000223,000 2007AGOImprovementBond414,780418,306416,846425,000540,000 2008BGOSewerRefunding496,231430,000500,000500,000500,000 2010AGOImprovementBond74,79852,00050,00020,000 TotalDebtServiceFunds**1,234,5331,144,4371,218,7521,190,0001,263,000 PercentChange47.7%-7.3%6.5%-2.4%6.1% CapitalProjectFunds StreetConstruction25,00025,00025,000- TotalCapitalProjectFunds 25,000 25,00025,000 -- PercentChange0.0%0.0%-100.0%--- TotalAllFunds7,775,000$7,677,309$7,845,000$7,900,000$8,150,000$ PercentChange0.3%-1.3%2.2%0.7%3.2% *MCClevyfordebt805,000$815,000$890,000$890,000$$1,040,000 **TotaldebtlevywithMCCdebt2,039,533$1,959,437$2,108,752$2,080,000$2,303,000$ PercentChange32.8%-3.9%7.6%-1.4%10.7% 20102011201220132014 TaxCapacity16,691,266$16,429,431$15,771,688$18,692,762$18,289,491$ PercentChange-0.6%-1.6%-4.0%18.5%-2.2% TaxCapacityRate45.82246.72949.77342.26244.672 PercentChange-0.8%2.0%6.5%-15.1%5.7% TAXLEVYANDTAXCAPACITYHISTORY TAXLEVYHISTORY TAXCAPACITYHISTORY 45 REVENUESOURCESBYFUND Property Franchise Tax Licenses/ Intergovern- Charges for Fines & Special Miscell- Sale of Debt Contributed Operating Taxes & Other Increments Permits mental Services Forfeits Assess aneous Goods Proceeds Capital Transfers Total General Fund 5,497,000 $ 236,500 $ - $ 273,180 $ 289,677 $ 281,273 $ 100 $ 300 $ 181,970 $ - $ - $ - $ - $ 6,760,000 $ Special Revenue Funds Economic Development - - 672,494 - - - - - 202,414 - - - 93,000 967,908 Deputy Registrar - - - - - 380,050 - - 1,000 - - - - 381,050 Minnesota Investment - - - - - - - - 25,000 - - - - 25,000 Monticello Community Center 1,390,000 - - - - 1,349,750 - - 25,250 - - - 50,000 2,815,000 Park & Pathway Dedication - - - - - - - - 5,000 - - - 494,500 499,500 Total Special Revenue Funds 1,390,000 - 672,494 - - 1,729,800 - - 258,664 - - 637,500 4,688,458 Debt Service Funds 2007A G.O. Improvement Bond 540,000 - - - - - - 122,022 - - - - - 662,022 2008A G.O. Revenue Refunding - - - - - - - - 500 - - - 1,040,000 1,040,500 2008B G.O. Sewer Refunding 500,000 - - - - - - - 5,000 - - - 450,000 955,000 2010A G.O. Improvement Bond - - - - - - - 57,353 - - - - 239,595 296,948 2011A G.O. Refunding (2005A) $223,000 - - - - - - 577,000 224,700 - - - 1,749,393 2,774,093 Total Debt Service Funds 1,263,000 - - - - - - 756,375 230,200 - - 3,478,988 5,728,563 Capital Project Funds Capital Project - - - - 1,670,000 - - - - - - - - 1,670,000 Closed Bond Fund - - - - - - - 283,000 5,000 - - - - 288,000 Stormwater Access - - - - - 50,000 - - 20,000 - - - - 70,000 Street Lighting Improvement - 130,000 - - - - - - - - - - - 130,000 Street Construction - - - - - - - - 25,000 - - - - 25,000 Total Capital Project Funds - 130,000 - - 1,670,000 50,000 - 283,000 50,000 - - - - 2,183,000 Enterprise Funds Water - - - 3,700 - 1,121,800 - 150,000 72,500 - - 25,620 - 1,373,620 Sewage - - - - - 2,050,500 - - 62,000 - - 60,450 - 2,172,950 Liquor - - - - - - - - 10,000 4,944,500 - - - 4,954,500 Cemetery - - - - - 24,800 - - 808 - - - - 25,608 Fiber Optics - - - - - 1,470,000 - - - - - - 350,000 1,820,000 Total Enterprise Funds - - - 3,700 - 4,667,100 - 150,000 145,308 4,944,500 - 86,070 350,000 10,346,678 Internal Service Funds IT Services - - - - - 252,708 - - 100 - - - - 252,808 Central Equipment - - - - - 124,220 - - 5,110 - - - - 129,330 Total Internal Service Funds - - - - - 376,928 - - 5,210 - - - - 382,138 Total All Funds 8,150,000 $ 366,500 $ 672,494 $ 276,880 $ 1,959,677 $ 7,105,101 $ 100 $ 1,189,675 $ 871,352 $ 4,944,500 $ - $ 86,070 $ 4,466,488 $ 30,088,837 $ Revenue Classifications 46 STAFFINGSUMMARY STAFFINGHISTORY Staffing,asmeasuredbyfull-timeequivalents,hasbeenrelativelystableforthelastfiveyears.Many employeesperformacrossmultipleactivities/divisionsandfunds.Thetablebelowdoesnotreflect thepart-timecommunitycenteremployees.Therearenosignificantchangestostaffinglevels plannedfor2014. AmendedAdopted ActualActualActualBudgetProjectedBudget 201020112012201320132014 GeneralFund CityAdministration1.851.851.851.851.852.08 Finance4.004.004.004.003.753.88 ITServices0.350.350.350.350.350.35 HumanResources1.001.001.001.001.001.00 Planning&Zoning1.301.301.301.301.301.30 CityHall1.401.401.401.401.901.90 BuildingInspections3.003.003.003.003.003.00 PublicWorksAdministration2.502.502.502.502.001.40 Engineering1.601.601.601.601.600.10 PublicWorksInspections1.301.301.301.301.300.80 Shop&Garage1.501.501.501.501.501.50 Streets&Alleys10.3010.3010.3010.3010.3010.05 Ice&Snow2.202.202.202.202.201.70 ParkOperations6.856.856.856.856.857.10 ShadeTree0.400.400.400.400.500.50 EconomicDevelopment0.700.700.700.70 TotalGeneralFund 40.2540.2540.2540.2539.4036.65 SpecialRevenueFunds EconomicDevelopment0.300.300.300.300.200.20 DeputyRegistrar5.006.006.006.006.006.10 MonticelloCommunityCenter8.408.408.408.408.408.40 TotalSpecialRevenueFunds 13.7014.7014.7014.7014.6014.70 EnterpriseFunds Water3.153.153.153.153.153.10 Sewage3.153.153.153.153.153.05 Liquor10.0010.0010.0010.0010.0010.10 FiberOptics7.457.457.457.456.957.95 TotalEnterpriseFunds 23.7523.7523.7523.7523.2524.20 TotalAllFunds 77.7078.7078.7078.7077.2575.55 NUMBEROFFULL-TIMEEQUIVALENTS FiscalYearEndedDecember31, 47 LONGRANGEFINANCIALPLANS GeneralFundCommunityCenterEDACapitalProjects Routine Expenditures Expectedtoriseatthepaceof inflationbutmitigatedbygains inproductivity.Somecapital expendituresareincorporated asroutinethroughrental chargesbyinternalservice funds. Expectedtoriseatthepaceof inflation.Routinecapital expendituresaresetat $50,000peryear. Non-TIFexpendituresare expectedtoriseatthepaceof inflation. Thecityannuallyappropriates forreplacementofroad surfacesandstreetlights. Franchisefeesprovidefunding forstreetlightimprovements. Roadsurfaceimprovementsare fundedbyreserves,stateaid andtranfersfromtheLiquor Fund. Non-routine Expenditures Basiclevelofnon-routine itemsareincludedinoverall budgetbutvarywithineach budgetunitfromyear-to-year. Largerepairandmaintence itemsandtotalcapital expendituresexceeding $50,000willbesupportedby transfersfromotherfunds. 2014:$50,000gymfloor replacement(transferfrom DeputyRegistrarFund) Taxincrementfinancing(TIF) expenditureswillvary considerableyfromyear-to- yearineachdistrictas developmentoccurs. Largecapitalprojectsusually receivefundingfromdebt issuance.Thecityusually coversinitialprojectcostswith reservesorotherrevenue sourcesandreimbursesitself withdebtproceeds.2014: Fallonoverpass-$1.2Mand TH25/CSAH75-$450,000. 2015:Fallonoverpass-$4.3M andTH25/CSAH75-$1.7M. 2016:streetsArea5-$3.6M. 2017:streetsArea6-$900K. Revenues Propertytaxesprovideover 80%oftherevenuefor GeneralFund.Consequently, spendingisconstrainedby growthinthetaxlevy.Thecity hasresisteddevelopingother revenuesourcessuchasfees forresidentialrefusecollection orstormwater. Withthelastpaymenton communitycenterdebtservice comingin2015,theproperty taxlevyforthisdebtwill declineby$1Min2016. Taxincrementrevenueswidely varyfromdistricttodistrict butnotmuchfromyear-to- year.Oftenreserves, accumulationofprioryear increments,areusedtofund projects.Transfersfromthe GeneralFund In2014,theFallonOverpass andTH25/CSAH75 expenditureswillbesupported bystateaid.Thecityplansto reimburseitselfwithtax abatementbondsin2015or 2016. Debt None:Indirectlysupports CentralEquipmentFunddebt servicethroughannualrental payments. Nodebtissuesareanticipated overnextfiveyears.Further, debtforrecreationalprojects eitherrequiresvoterapproval ormustbeincurredaspartof alease-purchaseagreement withtheEDA. IntrafundloansfromtheEDA GeneralFundsub-fundwill financesomeTIFactivities.No externaldebtissuanceis planned. 2015or2016:$6.5millionin taxabatementbonds.Thedebt serviceforthesebondswillbe structuredtotakeadvantageof thedeclineinothertax supporteddebt. 48 WaterSewageLiquorFiberOpticsCentralEquipment Expectedtoriseatthe paceofinflationbut mitigatedbyreinvestment inplantandequipment. Annualcapital expendituresfinancedon apay-as-you-gobasis rangebetween$150,000 to$300,000. Expectedtoriseatthe paceofinflationbut mitigatedbyreinvestment inplantandequipment. Annualcapitaloutlays financedonapay-as-you- gobasisrangebetween $150,000to$300,000. 2018:Phosphorus reductionO&Mwill increaseannualoperating costsby$73,000. Expectedtoriseatthe paceofinflationand increasesindemand.Cost ofsalesaretypically passedontocustomers throughhigherprices.The LiquorStoremaintainsa consistentgrossprofit marginof25%-26%. Expectedtoriseatapace greaterthaninflation. Operatingrevenuesare notsufficienttocover expendituresfor operations,rountineand non-routineitems. Capitalequipment purchaseswillvarywidely everyyear.Adebtservice scheduleiscontainedinthe InternalServicesectionof thisreport.Allexpenditures inthisfundareeitherfor capitalequipment purchasesordebtservice. 2016:$126,00090th StreettoChelseawater main.2017:$130,000 boosterstationupgrades. Becausewateraccess (impact)feeshave declinedwith development,transfersto debtservicefunds,with waterimprovement components,willcontinue forseveralyears. 2017:$1.1million phosphorusreduction projectatthewastewater treatmentplant.Because seweraccess(impact)fees havedeclinedwith development,transfersto debtservicefunds,with sewerimprovement components,willcontinue forseveralyears. TheLiquorFundhas $50,000budgetedfor replacingthecheckout areain2014.Otherlarge expendituresuchas equipmentreplacement (coolers,etc.)receiveas neededfundingfrom LiquorFundreserves. 2015:parkinglot improvements-$75,000 Operatingrevenuesare notadequatetosupport non-routineexpenditures. Consequently,LiquorFund transferswillprovide fundingforfund operations. 2014:firetruck-$335,000; blacktopplainer-$22,000; router-$22,000; aircompressor-$20,000. Streetequipment: 2015-$583,100; 2016-$672,000; 2017-$77,500; 2018-$475,000. Userratesarehigh enoughtocoverplanned expendituresforthenext fiveyears. Userratesareexpectedto risetoprovideforpay-as- you-goroutinesystem replacementanddebt financeupgradestomeet newenvironmental regulations.Atenpercent rateincreasewillbe neededforthephophorus reductionwastewater treatmentplantproject. Saleshaveincreased steadlyforthelastfive years.Goingforward, salesareexpectedtolevel outbecauseofspace limitations. 2014:$350,000transfer fromtheLiquorFund. 2015-2016:transfersfrom LiquorFundcoulddecline to$200,000orlesswith operationalchanges. Rentalrevenues (expendituresinother fundsandbudgetunits)will risewithequipment purchases.Therefore, revenuesourcesinother fundsbecometherevenue sourceforthisinternal servicefund. Nodebtissuesare anticipatedovernextfive years. TheMinnesotaPublic FacilitiesAuthoritymay providelowinterest financingforthe phosphorusreduction project. Nodebtissuesare anticipatedovernextfive years. Ifaresolutionisreached withtelecommunications bondholders,thecitywill issueapproximately$6 millioninsettlement bondsin2015.Thefirst paymentsontheseG.O. obligationbondswilllikely occurin2016,taking advantageofthe amortizationofothertax supporteddebt. Thefundisexpectedto becomeself-sustainingbut mayrequireadebt issuancetofinance2016 purchases. 49 LONGRANGEFINANCIALPLANS (continued) ThecityannuallyadoptsabalancedbudgetfortheGeneralFund.Consequently,therevenues/sourceslineand theexpenditures/useslinewilloverlapforthe2014budgetandforfutureyearprojections.After2014,Annual expendituresareprojectedtoincreaseat1.5%peryear.Thepropertytaxlevyandallotherrevenuesare projectedtoincreaseatthesamerateofexpenditures/uses.In2012,theGeneralFundtransferredover$2 milliontootherfundstoeliminateinterfundreceivables. $- $2 $4 $6 $8 $10 2010201120122013201420152016201720182019 Millions GeneralFund2010-2019 FundBalance Revenues/Sources Expenditures/Uses LiketheGeneralFund,theMonticelloCommunityCenterFundannuallyadoptsabalancebudget. Consequently,therevenues/sourceslineandtheexpenditures/useslinewilloverlapforthe2014budgetand forfutureyearprojections.After2014,Annualexpendituresareprojectedtoincreaseat1.5%peryear.In2012, thefundbalancedeclinedtoreflectcapitaloutlayexpendituresontheNatatoriumprojects.Transfersintothe fundalsosupportedtheproject.Thelastpayment($1,001,000)onpropertytaxsupporteddebtservice,related totheinitialconstructionofthecommunitycenter,occursin2015. $- $1 $2 $3 $4 $5 2010201120122013201420152016201720182019 Millions MonticelloCommunityCenter2010-2019 FundBalance Revenues/Sources Expenditures/Uses 50 TheWaterFundisthecity’smostself-sustainedutilityfund.Thefundhasnodirectdebtand adequatereservestocoveralmostanyexpenditureformajorcapitalprojects,ofwhichnoneare plannedatthistime.In2018,transferstootherdebtservicefundsforwaterrelatedimprovements cease.Thesetransferssupplementwateraccessfeeswhichallbutdriedupasaresultofslower commercialandresidentialdevelopment.Theincreasein2013expendituresincludeswater improvementsalong7th Streetandtheaforementionedtransfers. $- $1 $2 $3 $4 $5 $6 2010201120122013201420152016201720182019 Millions WaterFund2010-2019 WorkingCapital Revenues/Sources Expenditures/Uses UnliketheWaterFund,theSewageFundrepresentsfundingchallenges.First,sanitarysewer accessfeeshavedeclinedsignificantlywiththelackofdevelopment.Transferstootherdebtservice fundssupplementingtheseaccessfeesareexpectedtodropsignificantlyin2017andtocease altogetherin2018.Second,environmentalregulatorychangesrequirelargeinvestmentsinthe wastewatertreatmentplant.In2013,thefundincurred$3millionindebttoimprovetreatment plantcapacity.Additionally,thecityestimatesitwillincurover$1millionindebttofinancea treatmentplantphosphorousreductionprojectin2017.Theincreasein2013expenditures includeswaterimprovementsalong7th Streetandtheaforementionedtransfers. $- $1 $2 $3 $4 $5 $6 2010201120122013201420152016201720182019 Millions SewageFund2010-2019 WorkingCapital Revenues/Sources Expenditures/Uses 51 CAPITALINVESTMENTS Capital investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating budgets.Forexample,capitalinvestments maintenance oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare impactedintwoways: cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbackto payments assurethatequipmentpurchaseswillreceiveannualfunding, operatingexpenditures. Anothertypeofcapitalinvestmentincludes increase itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics portionofthebuilding,lowe consistentlyraise Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise fund.Forpublicutilities, customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. thecitybudgetsmoreforwaterandsewermainreplacemen Finally,nearly70miles the sealcoat more durable intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. CAPITALINVESTMENTS investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating budgets.Forexample,capitalinvestments maintenance expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare impactedintwoways:thecos cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbackto assurethatequipmentpurchaseswillreceiveannualfunding, operatingexpenditures. Anothertypeofcapitalinvestmentincludes itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics portionofthebuilding,lowe consistentlyraise their prices Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise Forpublicutilities, customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. thecitybudgetsmoreforwaterandsewermainreplacemen Finally,nearly70miles inlength,thestreetsystemisthecity’slargestcapitalasset sealcoat budgetforroadstoover$160,000. durable millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. CAPITALINVESTMENTS ANDOPERATINGBUDGETS investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating budgets.Forexample,capitalinvestments expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare thecostofthepeoplerepairingtheequipmentandthe cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbackto assurethatequipmentpurchaseswillreceiveannualfunding, Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. Anothertypeofcapitalinvestmentincludes itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics portionofthebuilding,loweringannualenergycosts prices. Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise Forpublicutilities,customersatisfactionisd customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. thecitybudgetsmoreforwaterandsewermainreplacemen inlength,thestreetsystemisthecity’slargestcapitalasset budgetforroadstoover$160,000. millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. ANDOPERATINGBUDGETS investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating budgets.Forexample,capitalinvestments replacingagingequipmentcanreduceannual expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare tofthepeoplerepairingtheequipmentandthe cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbackto assurethatequipmentpurchaseswillreceiveannualfunding, Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. Anothertypeofcapitalinvestmentincludes betterment itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics ringannualenergycosts Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise customersatisfactionisdifficulttoquantifyindollars customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. thecitybudgetsmoreforwaterandsewermainreplacemen inlength,thestreetsystemisthecity’slargestcapitalasset budgetforroadstoover$160,000.Additionally,thecityannuallybudgetsove millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. ANDOPERATINGBUDGETS investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating replacingagingequipmentcanreduceannual expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare tofthepeoplerepairingtheequipmentandthe cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbackto assurethatequipmentpurchaseswillreceiveannualfunding, Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. betterments,which are itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics ringannualenergycosts.Still,thesavingscanbeelusivewhentheenergyprovider Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise ifficulttoquantifyindollars customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. thecitybudgetsmoreforwaterandsewermainreplacementthanitdoesforrepairsandmaintenance. inlength,thestreetsystemisthecity’slargestcapitalasset Additionally,thecityannuallybudgetsove millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. ANDOPERATINGBUDGETS investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating replacingagingequipmentcanreduceannual expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare tofthepeoplerepairingtheequipmentandthe lossofproductivity. cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbackto thebenefitingbudgetunits.Thelease assurethatequipmentpurchaseswillreceiveannualfunding,getting Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. are improvement itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics ,thesavingscanbeelusivewhentheenergyprovider Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise ifficulttoquantifyindollars.However,agenerallysatisfied customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. tthanitdoesforrepairsandmaintenance. inlength,thestreetsystemisthecity’slargestcapitalasset Additionally,thecityannuallybudgetsove millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating replacingagingequipmentcanreduceannual repairsand expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare lossofproductivity. cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment thebenefitingbudgetunits.Thelease getting thesamepriority Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. improvements thatprolong itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics ,thesavingscanbeelusivewhentheenergyprovider Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise .However,agenerallysatisfied customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices. tthanitdoesforrepairsandmaintenance. inlength,thestreetsystemisthecity’slargestcapitalasset.In2014,thecityincreased Additionally,thecityannuallybudgetsover$200,000fora millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating repairsand expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare lossofproductivity.In2013,the cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment thebenefitingbudgetunits.Thelease thesamepriority asother Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. thatprolong anasset’slifeor itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics ,thesavingscanbeelusivewhentheenergyprovider Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise .However,agenerallysatisfied customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices.Annually, tthanitdoesforrepairsandmaintenance. In2014,thecityincreased r$200,000fora millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork investments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating expendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife In2013,the cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment anasset’slifeor itsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics ,thesavingscanbeelusivewhentheenergyproviders Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise .However,agenerallysatisfied Annually, In2014,thecityincreased r$200,000fora millandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork 52 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:ForFY14,thecityisexpectedtoissueG.Ojudgmentbondstosettle claimsrelatedtothe$26,445,000telecommunicationrevenuebonds.Thecitydefaultedonthebondsin2012. Thejudgmentbondswilltotal$5,750,000withthefirstinstallmentofinterestlikelydueinDecember2015and thefirstprincipalpaymentdueinJune2016. BondRatings:Thecity’sgeneralobligationbondratingwasupdatedinOctober2013.Moody’sratedthecity’s G.O.debtan“A2”anditsleaserevenue(communitycenter)debtan“A1”,whichisinthe“mid-rangeofthe uppermediumgrade”.Thisisgenerallydescribedas“strong,investmentgrade”creditbyMoody’s. Marketvalue(payable2014)1,219,719,700$ Debtlimit(3%ofmarketvalue)36,591,591$ Debtapplicabletolimit Othergeneralobligationbonds 8,486,000 Lessgeneralobligationbonds notsubjecttothelimit(4,786,000)$ Totalnetdebtapplicabletolimit3,700,000$ Legaldebtmargin32,891,591$ LegalDebtMarginCalculationforFiscalYear2014 53 DEBTSERVICELEVYHISTORY Mostofthecity’sdebtissuesaresupportedonsomelevelbypropertytaxes.Anexceptionwould bethefiberopticrevenuebonds,whicharesolelysupportedwithsystemrevenues.Thefiber opticbondsarecurrentlyindefault.Additionally,asliverofthe2008Sewerbondsaresupported directlywithSewageFundrevenues.Thecommunitycenter’sspecialrevenuefundisaconduitfor taxesleviedtosupportthe2008MCC(MonticelloCommunityCenter)bonds.In2013,thecity issued$500,000ingeneralobligationcertificatesofindebtednessand$3,000,000ingeneral obligationwastewatertreatmentbonds.Thecitydoesnotanticipatelevyingforthe2013issues. Year 2010AImp.2011AImp 2007AImp.2008Sewer 2008AMCC Total 2010 74,798$248,724$414,780$496,231$805,000$2,039,533$ 2011 52,000 244,131 418,306 430,000 815,000 1,959,437 2012 50,000 251,906 416,846 500,000 890,000 2,108,752 2013 20,000 245,000 425,000 500,000 875,000 2,065,000 2014 -223,000 540,000 500,000 1,040,000 2,303,000 2015 25,000 205,000 420,000 500,000 1,001,000 2,151,000 2016 25,000 207,000 420,000 500,000 -1,152,000 2017 25,000 206,000 420,000 500,000 -1,151,000 2018 25,000 215,000 420,000 500,000 -1,160,000 2019 25,000 185,000 ---210,000 2020 25,000 185,000 ---210,000 2021 25,000 183,000 ---208,000 2022 25,000 187,000 ---212,000 2023 -185,000 ---185,000 2024 ------ $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 201020112012201320142015201620172018201920202021202220232024 DebtServiceLevy(2010-2024) 2010AImp.2011AImp 2007AImp.2008Sewer 2008AMCC 54 G.O.DEBTSERVICE Currentgeneralobligation(G.O)debtwillseerapidamortizationoverthenexttenyears,withthe biggestdeclineoccurringin2017.Theschedulebelowreflectstherefinancingof2005A improvementbondswith2011Abonds.OtherG.O.bondsrepresentamountspaidonmultiple retireddebtissues.In2013,thecityissued$500,000ingeneralobligationcertificatesof indebtednessand$3,000,000ingeneralobligationwastewatertreatmentbonds. YearOtherG.O.2010AImp.2011AImp.2007AImp.2008Sewer2008AMCC2013COI2013WWTTotal 2010293,385$-$3,178,413$811,400$1,048,971$802,600$-$-$6,134,769$ 2011293,760200,7633,120,481807,0001,049,1791,102,080--6,573,263 2012-459,9783,053,238733,2001,048,4271,100,880--6,395,723 2013-447,7253,011,413734,9001,049,7821,074,12058,788-6,376,728 2014-360,1502,880,150735,6001,049,8411,037,36066,120254,1986,383,419 2015-302,3992,460,250730,4001,049,1931,000,76065,760250,5985,859,360 2016-304,0502,423,950729,3001,048,854-65,250246,9984,818,402 2017-304,618783,650663,5001,049,078-69,590243,3983,113,834 2018-299,324779,350663,0001,049,163-68,713244,7983,104,348 2019-298,355428,350---67,673241,0981,035,476 2020-301,653430,650---71,470242,3981,046,171 2021-304,050425,825---243,598973,473 2022--428,750---244,405673,155 2023--426,300---244,375670,675 2024 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 201020112012201320142015201620172018201920202021202220232024 G.O.DebtServicePaid/Due(2010-2024) OtherG.O.2010AImp.2011AImp.2007AImp.2008Sewer 2008AMCC 2013COI 2013WWT 55 G.O.DEBTLEVELS Currentgeneralobligation(G.O)debtlevelshavedeclinedrapidlyoverthepastfouryears,largely theresultof2011A(2005Aredeemed)refundingimprovementbondissueamortization.Therapid amortizationofdebtreflectsanopportunityforfinancingnewprojectsincludedinthecapital improvementprogram(CIP).Theschedulebelowreflectstherefinancingof2005Aimprovement bondswith2011Abonds.OtherG.O.bondsrepresentamountspaidonmultipleretireddebt issues. YearOtherG.O.2010AImp.2011AImp.2007AImp.2008Sewer2008AMCC2013COI2013WWTOutstanding 2010265,000$3,095,000$18,110,000$4,985,000$7,415,000$4,920,000$-$-$38,790,000$ 2011-3,095,00015,705,0004,365,0006,607,0003,960,000--33,732,000 2012-2,680,00013,255,0003,795,0005,742,0002,970,000--28,442,000 2013-2,275,00010,735,0003,200,0004,848,0001,975,000445,0003,000,00026,478,000 2014-1,955,0008,055,0002,580,0003,924,000985,000385,0002,820,00020,704,000 2015-1,690,0005,745,0001,940,0002,968,000-325,0002,640,00015,308,000 2016-1,420,0003,425,0001,275,0002,012,000-265,0002,460,00010,857,000 2017-1,145,0002,715,000650,0001,023,000-200,0002,280,0008,013,000 2018-870,0001,995,000---135,0002,095,0005,095,000 2019-590,0001,615,000---70,0001,910,0004,185,000 2020-300,0001,225,000----1,720,0003,245,000 2021--830,000----1,525,0002,355,000 2022--420,000----1,325,0001,745,000 2023-------1,120,0001,120,000 2024-------910,000910,000 $- $5 $10 $15 $20 $25 $30 $35 $40 $45 201020112012201320142015201620172018201920202021202220232024 M illio n s G.O.DebtOutstanding(2010-2024) OtherG.O.2010AImp.2011AImp.2007AImp.2008Sewer 2008AMCC 2013COI 2013WWT 56 INTERFUNDTRANSFERS INTERFUNDTRANSFERS Operatingtransferssupporttheoperationsofotherfunds,provideforspecialprojects,and contributetodebtservicepayments.Thefollowingscheduleprovidestheoperatingtransfersinthe 2014Budget. FundNo.TransferInFund Amount FundNo.TransferOutFund Amount 212EconomicDevelopment93,000$101GeneralFund93,000$ 226CommunityCenterFund50,000217DeputyRegistrar50,000 229ParkandPathwayFund494,500300ClosedBond494,500 3122011AGOImprovementBond1,749,393212EconomicDevelopment278,353 602Sewage704,540 402StormwaterAccess266,500 601Water500,000 3152008AGOSewerRevenueBond450,000602Sewage450,000 3142008AGORevenueBond1,040,000226MonticelloCommunityCenter1,040,000 3172010AGOImprovementBond239,595602Sewage128,795 402StormwaterAccess59,800 601Water51,000 655FiberOptics350,000609Liquor350,000 TotalTransfersIn4,466,488$TotalTransfersOut4,466,488$ SCHEDULEOFOPERATINGTRANSFERS 57 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. 58 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. 59 Citystaffisencouragedtoidentifyworkpracticeissuesthatareinefficientoroverly bureaucratic.Themanagementteamiscommittedtoinvolvingtheiremployeesandfosteringan environmentthatchallengesthestatusquoofcityoperations. 9.Continuouslyreviewingopportunitiestoforpartnershipswithneighboringcommunitiesto shareservicesandequipment,jointlypurchaseequipmentanddevelopstrategiestodealwith localissuesusingaregionalapproach. Thecityhasestablishedseveralequipmentandservicedeliverysharingarrangementswith neighboringcommunitiesandhasseveraljointpowersagreementsinplaceonavarietyoflocaland regionalissuesintheareaofpublicsafetyandpublicworksinitiatives. 60 REVENUETRENDS&ANALYSIS Revenuesareestimatedforeveryfundofthecityeachyear.Thissummaryofrevenueestimatesis supportedbydetailedrevenueestimatesforeachfundinlatersections.Thissectionofthebudget highlightsmajorrevenuesourcesforallthecityfundsascombinedandforeachmajorgovernmental andenterprisefund:theGeneralFund,MonticelloCommunityCenter,andDeputyRegistrar governmentalfunds,alongwiththeWater,Sewage,Liquor,andFiberOpticsenterprisefunds.Trends ofthesefundsandindividualrevenuesareshowntogetherwithestimatesforthecomingyear. TOTALCITYREVENUESANDOTHERSOURCES 201020112012201320132014% TOTALALLFUNDSACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes7,304,370$7,319,010$8,157,147$7,900,000$7,900,000$8,150,000$3.2% TaxIncrements1,165,2031,050,5631,052,110681,240966,934672,494-1.3% Franchise&OtherTaxes315,761321,584347,934366,500366,500366,5000.0% SaleofGoods4,477,6514,653,3854,854,7984,461,5004,848,5004,944,50010.8% Licenses&Permits231,370258,526276,168274,680324,680276,8800.8% IntergovernmentalRevenues717,906881,560576,581918,209918,2091,959,677113.4% ChargesforServices6,033,3697,087,8756,826,9556,656,8756,964,3236,728,1731.1% Fines&Forfeits2558514,3381001001000.0% SpecialAssessments1,621,4412,009,1842,061,1911,336,2451,469,5551,189,675-11.0% Miscellaneous2,033,5524,078,7972,080,8031,194,9651,096,378866,142-27.5% ContributedCapital143,433----86,070--- OperatingTransfers5,237,7104,041,68013,345,9075,198,3746,687,1904,466,488-14.1% DebtProceeds15,022,42014,655,3761,004,6986,100,0003,000,000--100.0% TOTALREVENUES44,304,441$46,357,625$40,598,630$35,088,688$34,542,369$29,706,699$-15.3% Propertytaxesaccountforthesinglelargestrevenuesourceforthecity.Othersourcessuchas operatingtransfers(in)anddebtproceedsoccasionallysurpasspropertytaxes,buttheygenerally donotsupportday-to-dayoperations. TaxIncrementsarethemainsourceofrevenuefortheEconomicDevelopmentFund.Thisfund accountsforthecity’staxincrementfinancing(TIF)districtsandothergeneraleconomic developmentactivities.OneTIFdistrictwasdecertifiedin2013. Licenses&permitsarecomprisedprimarilyofbuildingpermits,whichisexpectedtobeevenwith 2013projections. Intergovernmentalrevenuesareexpectedtoincreasewithstateaidforcapitalprojectsrelatedto theTH25/CSAH75intersectionimprovementsandtheFallonAvenueoverpass.Withastrong commercialtaxbase,thecitygenerallydoesnotqualifyformuchstateaidthatisnotproject specific. Specialassessmentsprimarilysupportdebtservicefunds.Twoparcelswithlargeassessmentsare expectedtobedelinquentinthecurrentandfutureyears. 61 Chargesforservicesdonotreflectchangestothefeescheduleoccurringafteradoptionofthe budget.Thecityusesconservativerevenuebudgetingpracticestoensurerevenueswillbe sufficienttomeetoperatingneeds. Miscellaneousrevenuesareestimatedtodeclineasaresultofloweryieldsoninvestments.The amountofinvestiblefundsisexpectedtobestable.Overallrevenuesandothersourceslag expendituresandotheruses,butmostofthedifferenceismoneyheldintrustforredeeming bondsin2013. Operatingtransfers(In)areexpectedtodeclinewithfewerprojectstosupportwithinternal sources.In2012,thecitymadesignificantunbudgetedtransferstoreduceinterfundloan balances.In2014,operatingtransfersarelargelycomprisedofmoneygoingtodebtservicefunds fortheannualprincipalandinterestpaymentsonbondeddebt. In2013,debtproceedswereestimatedat$6.1millionforsewagetreatmentplantimprovements. However,approvedprojectsrelatedtotheupgradestotaledlessthan$3million. Thechartbelowprovidesanoverallpictureofthecity’srevenuesandothersources. Property Taxes 27% Saleof Goods 17% Chargesfor Services 23% Operating Transfers 15% AllOther 18% RevenueandOtherSources (AllFunds) PROPERTYTAXES Thecityreliesonpropertytaxestosupportsuchfunctionsasgeneralgovernment,publicsafety, publicworks,recreationandculture,anddebtservice.For2014,thecounciladoptedalevyof $8.15million,whichis$250,000(3.2%)morethantheprioryear.Thetaxlevyhasbeenrelatively flatforthelastfiveyearsandtrailsincreasesintheConsumerPriceIndex(CPI)overthesametime period. 62 Thefollowingchartreflectsthechangesinthetaxlevyoverthelasttenyears: $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 20042005200620072008200920102011201220132014 PropertyTaxLevy Accountingforavarietyofactivities,theGeneralFundwillreceivelessthan70%ofthe2014 propertytaxlevy.Indeed,propertytaxesprovideapproximately81%oftheGeneralFund’s revenue.ThelevyfortheMonticelloCommunityCenterhastwocomponents:operationsand debtservice.Theoperationscomponentis$350,000andthedebtservicecomponentis $1,040,000,ortogether$1,390,000.Thefollowingchartrepresentsthedistributionofthetaxlevy for2014. GeneralFund, $5,497,000, 68% MCC Operations, 350,000,4% DebtService*, 2,303,000,28% PropertyTaxLevy(Adopted-2014) 63 Whendeterminingthepropertytaxlevy,thecitycouncilandstaffconsidertheimpactthelevy willhaveonvariouspropertyowners.Thisimpactisthenbalancedagainstservicesprovidedand servicelevels.Thecitywasabletofundservicesatcurrentlevelswhilereducingthelevyinpast yearsduetoagrowingeconomyandincreasedpropertyvalues.However,propertyvalueshave declinedoverthepastseveralyearsasresultofaweakernationalandlocaleconomy.Estimated marketvaluesareconvertedtotaxcapacitybyusingspecificstateformulasforvarioustypesof properties.In2013,thetaxcapacitygrewahealthy$2.9million(18.6%)to$18.7million.Why? Thenuclearpowerplantlocatedwithinthecitylimitsaddedover$160millioninnewtaxable valuewithcapitalequipmentupgrades.Consequently,equipmentretirementsrelatedtothesame upratecausedaslightdeclinein2014. Inastablelevyenvironment,taxcapacityandtaxcapacityrateswilltypicallyhaveaninverse relationship.Thefollowingchartdemonstratesthatrelationshipoverthelast15years: $9.6M $18.3M65.218 44.672 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$6,760,000millionforthe2014budgetyear.TheprimaryGeneralFundsourceof revenueispropertytaxesat$5,497,000,whichaccountsfor81%ofthetotal.Noothersingle categoryofrevenuesexceeds4%oftotalrevenues. 64 TheGeneralFundisnotsupportedbyanytransfers(othersources)fromotherfunds.Thefollowing chartdepictsGeneralFundrevenuesasrepresentedinthe2014adoptedbudget: PropertyTaxes, 81% GeneralFundRevenues PropertyTaxes Franchise&OtherTaxes Licenses&Permits IntergovernmentalRevenues ChargesforServices AllOther GeneralFundrevenuespeakedin2008alongwithpropertytaxesandlicensesandpermits.Since 2008,licensesandpermitshavecomprisedarelativelylesssignificantportionoftheoverallrevenues. Licensesandpermitsconsistmostlyofbuilding-typepermitsandhavegreatlydeclinedalongwiththe economyandcommercialandresidentialconstruction.Peakingin2008above$1million,licenses& permitsareestimatedat$273,180for2014.ThechartbelowrepresentsGeneralFundrevenuesover thelasttenyears,with2013projectedand2014budgeted: $- $1 $2 $3 $4 $5 $6 $7 $8 $9 2005200620072008200920102011201220132014 M i l l i o n s GeneralFundRevenues PropertyTaxes Licenses&Permits AllOther 65 MONTICELLOCOMMUNITYCENTER TheMonticelloCommunityCenter(MCC)providesafacilitywithspaceforavarietyofrecreational, professional,andeducationalopportunities.Asidefromitsportionofthepropertytaxlevy,theMCC issupportedbyavarietyoffeesformemberships,activities,rental,andconcessions.Councilpasseda revenuerecoverypolicyalongwithbudgetadoptionthatnowrequirestheMCCtocover85%ofits operatingcosts—includingequipment—withfeesandcharges. Inthefollowingchart,2009through2012areactualamountsand2013and2014areestimates.The 2014budgetreflectsfurtherimplementationofthenewrevenuerecoverypolicy. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 UserFeesRentalActivitiesConcessions MCCMajorRevenues 2010 2011 2012 2013 2014 DEPUTYREGISTRAR(aka:DMV) ThecityisauthorizedbytheStateofMinnesotatooperateaDMV.Feescollectedfromissuanceof motorvehicleandDNRlicensesaretheDMV’smainrevenuesource.Thefeesareregulatedbythe state.Astateapprovedfeeincreasealongwithaslightlybettereconomyresultedinhigherrevenues in2013.Withdarkershadesofgreenrepresentinghigher(better)numbersinconditionalformatting, thefollowingchartshowsthehistoryofDMVrevenuesoverafiveyearperiod. DMVRevenue Month20092010201120122013Average Jan22,726$21,961$21,372$37,534$39,765$28,671$ Feb24,32027,58127,62442,74840,77032,609 Mar24,04535,77733,57350,45936,27636,026 Apr27,99835,13832,09844,25144,20836,738 May26,37327,00033,92037,75148,81434,772 Jun27,27431,17032,73243,37837,90434,492 Jul24,44129,57727,59738,58940,82232,205 Aug25,84926,41038,37639,50738,53033,734 Sep24,47926,47233,65831,89036,62230,624 Oct21,66622,09329,20636,49132,96928,485 Nov23,46520,60329,13129,24127,35725,959 Dec26,55326,89425,93127,10932,14027,725 Total299,188$330,677$365,217$458,948$456,178$382,041$ Transactions53,59255,94458,25762,99962,42058,642 66 WATERANDSEWAGEFUNDS WaterandsewagechargesforservicesareprimarilycomprisedofprovidingMonticelloresidentsand businesseswithwaterandsewageservices.Basedpartiallyonthelevelofconsumption,theseutility fundseachhaveseparatechargesfordeliveredservices.Thecitysetratestocoveroperatingcosts,a portionofdepreciation,anddebtservice.Asnewdevelopmentslowed,theburdenoninfrastructure replacementcostsshiftedtoutilityratesfromimpact(access)charges.Thewaterandsewagefunds areexpectedtoprovidesomeleveloffuturesupportfordebtserviceincurredtomakewaterand sewagesystemimprovements. Waterandsewagerevenuegrewwiththecommunityfrom2005to2007asconsumptionandrates increased.Afterward,revenuescontinuedtoclimbsolelyontheincreasesinrates.Thefollowing chartplotsrevenuesforwaterandsewageserviceontheprimaryaxis(left)againstwatersaleson thesecondaryaxis(right): - 100 200 300 400 500 600 700 $- $0.5 $1.0 $1.5 $2.0 $2.5 2005200620072008200920102011201220132014 Gallo n s S o ld (M illio n s) Rev en u es (M illio n s) Water&SewageRevenue Water Revenue Sewage Revenue H2OSold (Gals) Waterservicechargeshavetwocomponents:basechargewithaminimumusageamountand consumptionchargeforusageabovetheminimumamount.Bothchargeshaveincreasedsteadily overthelastnineyears:averagebasechargeandconsumptionchargeincreaseswere7.4%and 8.6%,respectively.For2014,noincreasehasbeenbudgetedforeitherthebasechargeorthe consumptioncharge. Sewagecharges,similarlytowatercharges,havetwocomponents:basechargewithaminimum usageamountandconsumptionchargeforusageabovetheminimumamount.Bothchargeshave increasedsteadilyovertheyears:averagebasechargeandconsumptionchargeincreaseswere7.6% and8.0%,respectively.For2014,noincreasehasbeenbudgetedforeitherthebasechargeorthe consumptioncharge. 67 Thefollowingchartreflectsthewaterandsewagebaseratesoverthelasttenyears: $- $5 $10 $15 $20 $25 2005200620072008200920102011201220132014 Q u a rte rly C h a rg e SewageandWaterBaseRates Sewage Water LIQUORFUND Liquorsaleshaveincreasedoverthelastfiveyearsandthebudgetreflectsthistrend.TheLiquor Fundhasoneretailoutlet:Hi-WayLiquors.Thisfundprovidesvitalresourcesformanycommunity projectsincludingcommunitycenterandstreetimprovements.Conservativerevenueestimatesare usedforbudgetingpurposes.However,2014netcashflowfromoperationsshouldtop$600,000.In prioryears,interestearningscontributedsignificantlytonetcashflows.Operatingtransfersoutin 2012depletedcashandwillcurtainfutureinterestearnings. With2013salesofover$5million,Monticello’sliquorstoreranksnearthetopofMinnesotacities withonlyonestore.However,revenuegrowthisexpectedtoslowbecauseofstoresizelimitations. Totalsaleshaveclimbedanaverageof4%forthelastfiveyears;winehasthefastestgrowthcategory withanaverageabove12%overfiveyears,butgrewataratebelowaveragein2013. $- $1 $2 $3 $4 $5 $6 20092010201120122013 M illions Hi-WaySalesbyCategory Wine Liquor Beer 68 FIBEROPTICSFUND Monticello’stelecommunicationsutility,FiberNetMonticello,providesinternet,telephone(voice) andvideo(TV)services.Cityresidentialandcommercialcustomerscansubscribetoone,twoorall threeservices.FiberNetcontinuestofacecompetitionfromtwolargeprivateproviderswithdeep pockets.Asaresult,subscribercountsforallthreeserviceshavedeclinedinrecentyears.Still, commercialandresidentialcustomersarebenefittingfromlowerbillswithFiberNet’spresenceinthe marketplaceeveniftheyarenotFiberNetcustomers. - 200 400 600 800 1,000 1,200 1,400 1,600 3Q-114Q-111Q-122Q-123Q-124Q-121Q-132Q-133Q-134Q-13 # o f C u sto m ers FiberNetCustomerBase Voice Internet TV 69 APPROPRIATIONSBYTYPE Expenditures,oftencalled“Appropriations,”areclassifiedunderoneofsixmajorcategories: personnelservices(wages&benefits),supplies,otherservices&charges(professionalfees, utilities,etc),capitaloutlay,debtservice,andoperatingtransfers(otherfinancinguses).Thegraph belowshowstherelativepercentageofFY14budgetedexpendituresforthesesixmajorcategories forallfunds,combined.Itexcludesdebtservicepaidfromanadvancerefundingescrowaccount. Personnel Services 16% Supplies 16% CapitalOutlay 15% OtherServices &Charges 20% DebtService 20% Operating Transfers 13% 2014AppropriationsbyType-AllFunds APPROPRIATIONSBYTYPE,GENERALFUNDONLY—Usingthosesamecategoriesofexpenditure type,therelativepercentagesofbudgetedexpendituresfortheGeneralFundareshownbelow.As youcansee,theGeneralFundiscomprisedofamuchhigherpercentageofpersonnelservicescosts comparedtoallfunds,asawhole.TheGeneralFundsupportsverylittlecapitalimprovementsand nodebtservicecomparedtoallfunds,asawhole. Personnel Services 40% Supplies 8%CapitalOutlay 2% OtherServices &Charges 49% Operating Transfers 1% 2014AppropriationsbyType-GeneralFund 70 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-enterpriseandnon-internalservicefunddebt. Thesefundsaresupportedwithpropertytaxes,specialassessments,taxincrements, andaccessfundtransfers. Enterprisefundsconsistofwater,sewage,liquor,cemetery,andfiberopticsfunds. Thesefundsoperateonaself-supportingbasis. Specialrevenuefunds,totaling13%ofappropriations,includeavarietyoffeesupportedfunds includingthecommunitycenteranddeputyregistrar(DMV). CapitalProjectFunds,totaling10%ofappropriations,includeimprovementfundsforstreet reconstructionandstreetlighting,andothercapitalassetacquisitionfunds,excludingthose purchasedthroughenterpriseandinternalservicefunds. GeneralFund 21% Special Revenue Funds 13%DebtService Funds 18% Capital ProjectFunds 10% Enterprise Funds 35% Internal ServiceFunds 3% 2014AppropriationsbyFund-Type 71 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 72 GENERALFUND-SUMMARY FUNDDESCRIPTION Oneoffivegovernmentalfundtypes,theGeneralFundservesasthechiefoperatingfundofthe city.TheGeneralFundisusedtoaccountforallfinancialresourcesnotaccountedforinsomeother fund.Thefundusesthemodifiedaccrualbasisofaccountingforbudgetingandfinancialreporting purposes.Thismeansexpendituresarerecordedwhentheliabilityisincurredandrevenuesare recordedwhentheybecomemeasurableandavailable.TheadoptedGeneralFundbudgetisa balancedbudget--currentrevenuesandothersourcesequalexpendituresandotheruses. ISSUES TheGeneralFund’slargestrevenuesourceispropertytaxes.Thepropertytaxlevyhasbeen relativelyflatsince2008andithasnotkeptpacewithinflation.ThePublicWorksDepartmenthas thelargestappropriationfor2014. GENERALFUND 201020112012201320132014% REVENUESACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PropertyTaxes$5,075,506$5,148,326$5,669,969$5,540,000$5,540,000$5,497,000-0.8% Franchise&OtherTaxes18,17793,368237,022236,500236,500236,5000.0% Licenses&Permits223,494258,206275,198270,980320,980273,1800.8% IntergovernmentalRevenues328,757261,553304,395284,509284,509289,6771.8% ChargesforServices1,342,545398,410310,121272,610281,273281,2733.2% Fines&Forfiets2558514,3381001001000.0% SpecialAssessments5,1163,55010,3493003003000.0% Miscellaneous373,946436,769491,956181,970181,970181,9700.0% OperatingTransfers65,000-1,729------ TOTALREVENUES7,432,796$6,600,267$7,315,077$6,786,969$6,845,632$6,760,000$-0.4% EXPENDITURESBYDEPARTMENT GENERALGOVERNMENT MayorandCouncil52,653$52,078$51,988$53,925$53,925$53,925$0.0% CityAdministration212,963238,736228,738241,122241,122274,40613.8% Elections37,2571,00038,9333,1423,14237,5731095.8% Finance376,650377,894337,348338,525338,525398,89617.8% Audit37,60042,72039,22740,00040,00041,0002.5% CityAssessing49,59849,03249,60051,21551,21551,9151.4% Legal103,28842,49140,27551,20051,20057,00011.3% HumanResources80,66474,53784,04192,24092,240105,82014.7% Planning&Zoning108,966173,918163,629168,128168,128200,00519.0% InformationTechnologyServices105,911116,790130,102158,509155,80447,845-69.8% CityHall269,262223,887233,602234,361231,606208,348-11.1% PrairieCenterBuilding39,25126,91115,09519,20019,20020,7858.3% TOTALGENERALGOVERNMENT1,474,063$1,419,994$1,412,578$1,451,567$1,446,107$1,497,518$3.2% Continued… 73 GENERALFUND201020112012201320132014% (Continued)ACTUALACTUALACTUALBUDGETPROJECTEDBUDGETCHANGE PUBLICSAFETY LawEnforcement1,093,658$1,121,370$1,138,614$1,150,290$1,150,290$1,098,726$-4.5% Fire&Rescue196,997195,801207,778228,271231,271263,61015.5% FireRelief66,75872,64774,22170,00070,00075,0007.1% BuildingInspections249,771245,272248,376263,636262,821284,6058.0% CivilDefense5,09226,8232,7191,9251,9253,83699.3% AnimalControl44,56145,82949,59446,33546,33549,0225.8% NationalGuard27,45820,66814,28722,25022,25022,2500.0% TOTALPUBLICSAFETY1,684,295$1,728,410$1,735,589$1,782,707$1,784,892$1,797,049$0.8% PUBLICWORKS PublicWorksAdministration236,134$181,639$176,457$224,970$224,970$119,290$-47.0% Engineering168,095220,078200,287213,436213,436136,916-35.9% PublicWorksInspecitons91,98645,74964,827125,292125,29294,028-25.0% Streets&Alleys578,716615,836655,170725,599725,599875,15020.6% Ice&Snow189,119173,842133,193219,515219,515237,1368.0% Shop&Garage180,051185,191219,646183,769183,769190,5833.7% Stormwater16,19416,55351,46831,20831,20833,1406.2% ParkingLots5,19411,7484,5689,3019,3019,3030.0% StreetLighting198,893205,986196,779216,500216,500222,5002.8% RefuseCollection534,903495,693500,037517,560517,560521,3970.7% TOTALPUBLICWORKS2,199,285$2,152,315$2,202,432$2,467,150$2,467,150$2,439,443$-1.1% RECREATIONANDCULTURE CommunityCelebrations1,359$39$5,165$3,300$3,300$3,300$0.0% SeniorCenter73,13693,17188,44191,02091,02097,0226.6% Transit---3,0003,0003,0000.0% IceArena75,00075,00075,00075,00075,000--100.0% ParkOperations451,201559,156528,001605,776619,221696,83515.0% ParkImprovements3,39880,3055,536------ ParkBallfields14,18818,54629,41942,30042,30032,800-22.5% ShadeTree34,46044,47952,98347,79247,79252,0698.9% Library37,57836,28729,71540,09740,09738,948-2.9% TOTALRECREATIONANDCULTURE 690,320$906,983$814,260$908,285$921,730$923,974$1.7% UNALLOCATED EconomicDevelopment60,255149,00845,585------ Insurance231,645249,987233,71797,26097,2609,016-90.7% TOTALUNALLOCATED291,900$398,995$279,302$97,260$97,260$9,016$-90.7% --- OTHERUSES --- OperatingTranfers1,204,000$650,000$2,393,502$80,000$92,000$93,000$16.3% TOTALOTHERUSES1,204,000$650,000$2,393,502$80,000$92,000$93,000$16.3% TOTALEXPENDITURES7,543,863$7,256,697$8,837,663$6,786,969$6,809,139$6,760,000$-0.4% FUNDBALANCE-JANUARY15,768,590$5,657,523$5,001,093$3,478,507$3,478,507$3,515,000$ Excess(Deficiency)of RevenuesoverExpenditures(111,067)(656,430)(1,522,586)-36,493- FUNDBALANCE-DECEMBER315,657,523$5,001,093$3,478,507$3,478,507$3,515,000$3,515,000$ 74 TheprevioustablesummarizesGeneralFundrevenuesbyclassificationsandexpendituresby activities/divisionsanddepartments.Thetablebelowsummarizesbothrevenuesandexpenditures byclassifications. GENERALFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes5,075,506$5,148,326$5,669,969$5,540,000$5,540,000$5,497,000$-0.8% TaxIncrements--------- Franchise&OtherTaxes18,17793,368237,022236,500236,500236,5000.0% Licenses&Permits223,494258,206275,198270,980320,980273,1800.8% IntergovernmentalRevenues328,757261,553304,395284,509284,509289,6771.8% ChargesforServices1,342,545398,410310,121272,610281,273281,2733.2% Fines&Forfeits2558514,3381001001000.0% SpecialAssessments5,1163,55010,3493003003000.0% Miscellaneous373,946436,769491,956181,970181,970181,9700.0% OperatingTransfers65,000-1,729------ TOTALREVENUES7,432,796$6,600,267$7,315,077$6,786,969$6,845,632$6,760,000$-0.4% EXPENDITURES PersonnelServices2,764,180$2,649,533$2,710,939$2,769,569$2,772,569$2,680,760$-3.2% Supplies390,396450,808473,829507,675507,675536,8755.8% OtherServices&Charges3,173,0523,394,9113,325,9003,324,6663,321,0963,323,6650.0% CapitalOutlay12,23533,062-105,059115,799125,70019.6% OperatingTransfers1,204,000728,3832,326,99580,00092,00093,00016.3% TOTALEXPENDITURES7,543,863$7,256,697$8,837,663$6,786,969$6,809,139$6,760,000$-0.4% FUNDBALANCE-JANUARY15,768,590$5,657,523$5,001,093$3,478,507$3,478,507$3,515,000$ Excess(Deficiency)of RevenuesoverExpenditures(111,067)(656,430)(1,522,586)-36,493- FUNDBALANCE-DECEMBER315,657,523$5,001,093$3,478,507$3,478,507$3,515,000$3,515,000$ BUDGETCOMMENTARY: Revenues For2014,budgetedrevenuesareestimatedtodecreaseby.4%(not4%),whichlagstheundivided overalllevyincreaseof3.2%.TheGeneralFund’sportionofthetaxlevyisbudgetedtofall.8%. Propertytaxesaccountforgreaterthan80%ofGeneralFundrevenues.TheGeneralFund’s allocationoffranchiseandothertaxesincreasedtomatchrelatedexpenditures(streetlighting). Chargesforservicesincreasedmodestlywithfeestotownshipforfireprotectionservices. Miscellaneousrevenuesareestimatedtofallwithinvestmentearningsonlowerinvestiblefunds. Expenditures Expendituresarebudgetedtobestableacrossallclassifications.Personnelservicesincludea5% healthinsurancebenefitincrease,astepraiseand1%cost-of-livingadjustment.Theseincreasesare offsetbydecreasesinstaffing.TheoperatingtransferoutistotheEconomicDevelopmentFundfor expendituresthatwereincurredintheGeneralFundinprioryears.For2014,thestateeliminated the6.875%salestaxforgovernmentexpendituresonservicesnotprovidedbytheprivatesector. 75 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: Measurement20102011201220132014 Councilmeetings2323232323 Councilworkshops andspecialmeetings2025202625 Councilresolutions809385101100 BUDGETCOMMENTARY: Thecouncil’sbudgetremainsconsistentwithpreviousyears.Themayorearns$700permonthand eachcouncilorearns$600permonth. 76 BUDGET: GENERALFUND201020112012201320132014% MAYOR&COUNCILActualActualActualBudgetProjectedBudgetChange PersonnelServices39,873$39,690$39,685$40,500$40,500$40,500$0.0% Supplies-19------- OtherServices&Charges12,78012,36912,30313,42513,42513,4250.0% CapitalOutlay--------- TOTALEXPENDITURES52,653$52,078$51,988$53,925$53,925$53,925$0.0% 77 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: Measurement20102011201220132014 Councilmeetingsagendas4348434344 Recordsdigitallyconverted75%75%75%75%75% Councilminutesapproved2020202020 78 BUDGETCOMMENTARY: Theadministrationbudgetsfor2013and2014reflecttheshiftingofexpensesfromotherbudgetary units.Noadditionalpersonnelwereaddedinfiscalyear2014andnoadditionalpersonnelwere budgetedfor2013.Theincreaseinotherservicesandchargesreflectsthere-allocationofexpenses forITservicesandinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludes afullstepincreasewitha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease. Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% ADMINISTRATIONActualActualActualBudgetProjectedBudgetChange PersonnelServices189,266$216,135$207,440$219,192$219,192$232,861$6.2% Supplies941,5694833003003000.0% OtherServices&Charges23,60321,03220,81521,63021,63041,24590.7% CapitalOutlay--------- TOTALEXPENDITURES212,963$238,736$228,738$241,122$241,122$274,406$13.8% 79 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: Measurement20102011201220132014 Voters,numberof3,36006,00705,000 Registervoters,numberof6,7346,1846,1646,1647,602 Pollingplaces11111 Electionsjudges48050050 BUDGETCOMMENTARY: The2013electionoff-yearbudgetismostlyformaintenancecontractsofcityvotingmachines.In 2012,therewereelectionsforpresidentandafullslateoffederal,state,andlocaloffices.The2014 electionsincludeaprimaryandgeneralelectionforfederal,stateandlocaloffices. BUDGET: GENERALFUND201020112012201320132014% ELECTIONSActualActualActualBudgetProjectedBudgetChange PersonnelServices21,186$103$20,367$222$222$16,910$7517.1% Supplies2,072-450--950--- OtherServices&Charges13,99989718,1162,9202,92019,713575.1% CapitalOutlay--------- TOTALEXPENDITURES37,257$1,000$38,933$3,142$3,142$37,573$1095.8% 80 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. 81 MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Outcome/Effectiveness: GFOABudgetAwardYesYesYesYesYes GFOACertificateof AchievementYesYesYesYesYes BondRatingAa3Aa3A2A2A2 ACHsas%oftotalAPactivity4%10%20%20%29% Efficiency: AP&ACHsperFTE(1.5)2,6893,1492,6151,4921,400 WorkLoad: APchecks,numberof3,8624,2533,1391,7831,500 ACH's171470784455600 W-2s232264258269280 1099's4449493535 Journalentries2,5792,8773,0093,1063,100 BUDGETCOMMENTARY: TheFinancebudgetincludesfundstohandlethefinancialtransactionsofthecity,inanefficient manner,whilemaintainingthehighestlevelofinternalcontrolsandsegregationofduties.The increaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.In2013,onefull- timepositionwasreturnedtopart-timestatus.Otherbudgetitemsareexpectedtoremaincloseto prioryearlevels. BUDGET: GENERALFUND201020112012201320132014% FINANCEActualActualActualBudgetProjectedBudgetChange PersonnelServices338,675$319,357$304,516$305,325$305,325$323,725$6.0% Supplies1,2862,2712,5561,8501,8501,8500.0% OtherServices&Charges36,68956,26630,27631,35031,35073,321133.9% CapitalOutlay--------- TOTALEXPENDITURES376,650$377,894$337,348$338,525$338,525$398,896$17.8% 82 AUDIT DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41540 ACTIVITYSCOPE: Anauditofcityfinancesmustbecompletedonanannualbasisforthecitytoremainincompliance withfederalandstateaccountingpractices. OBJECTIVES: 1.Completethefinancialauditinatimelyfashion. 2.Continuetoreducethenumberofauditfindingsandadjustments. ISSUES: 1.Increasingreportingrequirementsandauditingstandards. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Auditsubmittaldate6/246/176/296/266/15 Auditfindings23220 GFOAAwardYesYesYesYesYes BUDGETCOMMENTARY: Thebudgetforauditingconsistsentirelyoftheexpensesassociatedwiththerequiredauditprocess. Inlate2007,aRequestforproposal(RFP)forauditserviceswassenttoseveralfirms.TheRFP guaranteedthecostforauditservicesfortheyearsended2007through2009andresultedinacost decreasefrompreviousyears.Thiscontractwasextendedfor2014fiscalyear.Thefinance departmentplansonpreparingthe2013financialreport. BUDGET: GENERALFUND201020112012201320132014% AUDITActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges37,60042,72039,22740,00040,00041,0002.5% CapitalOutlay--------- TOTALEXPENDITURES37,600$42,720$39,227$40,000$40,000$41,000$2.5% 83 ASSESSING DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41550 ACTIVITYSCOPE: AssessingrequirementsarehandledthroughacontractthecitywiththeWrightCountyassessor. Therearenoplanstoalterthisactivity. OBJECTIVES: 1.Toassessnewandexistingparcelswithinthecityasrequired. ISSUES: 1.Pressureoffairlyappraisingpropertiesundercurrentmarkettrends. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Newresidentialproperties2222225 Newcommercialproperties56616 Parcelsassessed4,6764,6764,6694,6684,700 BUDGETCOMMENTARY: AssessingservicesarecontractedwiththeWrightCountyassessor.Theestimatedcostsfor assessmentsarebasedonnumberofexistingandnewparcels.Thecitypays$10.50perparcelfor assessmentservicesand$25foreachnewpermitwithanestimatedconstructionvalueunder $499,999and$100forvaluesover$500,000. BUDGET: GENERALFUND201020112012201320132014% ASSESSINGActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges49,59849,03249,60051,21551,21551,9151.4% CapitalOutlay--------- TOTALEXPENDITURES49,598$49,032$49,600$51,215$51,215$51,915$1.4% 84 LEGAL DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41601 ACTIVITYSCOPE: Alllegalservicesarecurrentlycontractedwithaprivatelegalfirm.Activitiesincludedarethe issuanceoflegalopinions,preparationofordinances,resolutions,contracts,andagreements,and theconductofcivillitigation.Additionallegalrequirements,suchaspublicationsanddues,are accountedforinthelegalbudget. OBJECTIVES: 1.Continuetorealizesavingsbycontractinglegalservices. ISSUES: 1.Risingcostsassociatedwiththeneedforexistingandnewlegalservices. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: In2010,thecityteamedwithRedWingtohirealobbyisttoseekstatefundsfornuclearstorage emergencyplanningduetotheclosureofYuccaMountainbytheFederalGovernment.Otherwise, thecitycontinuestorealizesavingsfromnothavingfull-timecounsel. BUDGET: GENERALFUND201020112012201320132014% LEGALActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges103,28842,49140,27551,20051,20057,00011.3% CapitalOutlay--------- TOTALEXPENDITURES103,288$42,491$40,275$51,200$51,200$57,000$11.3% 85 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: Measurement20102011201220132014 Full-timepositions6161585555 Part-timepositions7580829595 Full-timepositionsfilled85233 Otherpositionsfilled4925597777 Avg,numberofemployess136141140150150 86 BUDGETCOMMENTARY: In2010thehumanresourcepositionwaschangedtoafull-timeposition.The2014budgetreflects estimatedcostsforsettinguptraining,providingcitystaffwithbenefitandcompensation information,andotherexpensesbasedonpastexperience.Theincreaseinotherservicesand chargesreflectsthere-allocationofexpensesforITservicesandinsurances(property,liabilityand vehicle).Thepersonnelservicesbudgetincludesafullstepincreasewitha1%cost-of-livingincrease anda5%healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremaincloseto prioryearlevels. BUDGET: GENERALFUND201020112012201320132014% HUMANRESOURCESActualActualActualBudgetProjectedBudgetChange PersonnelServices71,247$64,654$71,732$77,990$77,990$84,974$9.0% Supplies353521806006006000.0% OtherServices&Charges9,0649,83112,12913,65013,65019,63743.9% CapitalOutlay--------- TOTALEXPENDITURES80,664$74,537$84,041$92,240$92,240$105,211$14.1% 87 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. 88 MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Outcome/Effectiveness: Grantsawarded401 Grantawards$571,820$0$100,000 Administrativeapplications(total)51010 processedwithin5workingdays222 SitePlanreviewsprocessed within14workingdays234 LandUseapplicationsprocessed within60workingdays281920 Reconciliationsprocessedwithin 60daysofthedecision1218 Efficiency: ApplicationsprocessedperFTE(1)283236 WorkLoad: PlanningApplications: Variances23 CUPs447 PUD/AmendmentstoPUD13 InterimUsepermits10 CompPlanamendments2 Mapamendments143 Non-cityzoningtextamendments20 Plats/adminstrativesubdivisions444 Administrativepermits8107 Siteplanreviews235 Vacations321 Totalapplications283527 Planningreconciliations1412 Commissionmeetings121313 Grantapplications402 BUDGETCOMMENTARY: Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.In2013,onefull- timepositionwasreturnedtopart-timestatus.Otherbudgetitemsareexpectedtoremaincloseto prioryearlevels. BUDGET: GENERALFUND201020112012201320132014% PLANNING&ZONINGActualActualActualBudgetProjectedBudgetChange PersonnelServices85,259$106,428$102,001$106,328$106,328$114,454$7.6% Supplies3,4314411744004004000.0% OtherServices&Charges20,27667,04961,45461,40061,40085,15138.7% CapitalOutlay--------- TOTALEXPENDITURES108,966$173,918$163,629$168,128$168,128$200,005$19.0% 89 INFORMATIONTECHNOLOGY(IT)SERVICES DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41920 ACTIVITYSCOPE: Priorto2014,thisactivitymanagedthedataprocessingandcomputerneedsforallcityfunctions.IT providesformaintenanceofexistingcomputerequipmentandservers,upgradestohardwareand software,andinstallationofnewcomputerequipmentandsoftware.Inaddition,electronic surveillance/security,wirelesstechnology,telecommunications,electronicstorageandrecovery,and othertechnologyneedsarecoveredunderthisarea.The2014budgetreflectstheinitiationof internalservicesfundforre-allocatingcosts. 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. 90 MEASURABLEWORKLOADDATA: Measurement 2010 2011 2012 2013 2014 Outcome/Effectiveness: Networkuptime Numberofclosedrequests Efficiency: Operationhoursvs.reported hoursassignedtorequests Opentoclosedrequestsratio 99%99%99% WorkLoad: Numberofhelpdeskrequests 326 350 350 Numberofclients/users 60 63 63 NumberofPC,servers,and networkdevices 95 96 96 BUDGETCOMMENTARY: Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Thedecreasein otherservicesandchargesreflectstheinitiationofanITServicesinternalservicefund,whichserves tore-allocateexpensestootherbenefittingactivities. BUDGET: GENERALFUND201020112012201320132014% ITServicesActualActualActualBudgetProjectedBudgetChange PersonnelServices26,124$32,580$29,464$34,704$34,704$35,813$3.2% Supplies4,7666,15818,8284,0004,000--100.0% OtherServices&Charges62,78660,66781,81084,40084,4001,232-98.5% CapitalOutlay12,23517,385-35,40532,70010,800-69.5% TOTALEXPENDITURES105,911$116,790$130,102$158,509$155,804$47,845$-69.8% 91 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: Measurement20102011201220132014 Newsletterspublished22222 Utilityinsertspublished22222 Parkinsertspublished04444 Servicedeskdataentry392476550550550 BUDGETCOMMENTARY: This Itemsbudgetedforcityhallactivityarecommonlysharedamongalldepartmentsoperatingout ofcityhall,aswellassomesuppliesusedbythecommunitycenter.Thedecreaseinotherservices andchargesreflectsthere-allocationofexpensesforITservicesandinsurances(property,liability andvehicle)tootherbudgetunits.Thepersonnelservicesbudgetincludesafullstepincreasewitha 1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Otherbudgetitemsare expectedtoremainclosetoprioryearlevels. 92 BUDGET: GENERALFUND201020112012201320132014% CITYHALLActualActualActualBudgetProjectedBudgetChange PersonnelServices83,899$58,459$56,346$63,506$63,506$115,555$82.0% Supplies22,03517,24812,58520,00020,00020,0000.0% OtherServices&Charges163,328148,180164,671150,855148,10072,793-51.7% CapitalOutlay--------- TOTALEXPENDITURES269,262$223,887$233,602$234,361$231,606$208,348$-11.1% 93 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: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: ThePrairieCenterBuildingwaspurchasedin2009toprovideFiberNetMonticellowithbusiness officespace.The2014budgetisbasedon2013projectedexpenditures.The2014increaseinother servicesandchargesreflectstheallocationofinsuranceexpenses(liability,propertyandvehicle). BUDGET: GENERALFUND201020112012201320132014% PRAIRIECENTERBLDGActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies1,1884175191,0001,0001,0000.0% OtherServices&Charges38,06326,49414,57618,20018,20019,7858.7% CapitalOutlay--------- TOTALEXPENDITURES39,251$26,911$15,095$19,200$19,200$20,785$8.3% 94 LAWENFORCEMENT DEPARTMENT:PublicSafety SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:42101 ACTIVITYSCOPE: AlllawenforcementservicesarecontractedwiththeWrightCountySheriff'sDepartment.The Sheriff’sDepartmentmaintainsalocalofficeinCityHall.TheSheriffsetsthehourlyrateandthecity contractsforthenumberofhours,typically18,000to19,000hoursannually.Contractedhours changein4hourincrements. OBJECTIVES: 1.ContinuecontractingforlawenforcementservicesfromWrightCounty. ISSUES: 1.Concernsfromresidentsregardinghavingourownpoliceforce. MEASURABLEWORKLOADDATA: Measurement 2010 2011 2012 2013 2014 Outcome/Effectiveness: Arrests 907 1019 942 1004 1000 Arreststocrimesratio 0.74 0.77 0.73 0.79 0.83 Efficiency: Hourscontracted 18,980 18,980 #18,980 #18,980 #17,520 Callsperhourcontracted 0.36 0.34 0.32 0.32 0.34 Costsperworkloadunit $161.18 $175.44 $188.68 $186.47 $184.97 WorkLoad: Servicecalls,numberof 2,971 2,851 2,832 2,846 2,800 Trafficcalls,numberof 2,263 1,847 1,621 1,657 1,600 Vehiclecrashes,numberof 315 359 289 388 320 Crimes,numberof 1,222 1,326 1,285 1,267 1,200 95 BUDGETCOMMENTARY: Lawenforcementservicesarecontractedinfour-hourincrementsfromtheWrightCountySheriff’s Department.Pasthourlyratesareasfollow:2013-$60.50;2012-$59.75;2011-$59.00.Thehourly ratefor2014willbe$62.50.Consequently,thecitycontractedfor17,520hoursin2014,whichis4 (52to48hours)perdaylowerthanthe18,980hourscontractedforin2013. BUDGET: GENERALFUND201020112012201320132014% LAWENFORCEMENTActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges1,093,6581,121,3701,138,6141,150,2901,150,2901,098,726-4.5% CapitalOutlay--------- TOTALEXPENDITURES1,093,658$1,121,370$1,138,614$1,150,290$1,150,290$1,098,726$-4.5% 96 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.The2014increaseincapitaloutlayreflectstheacquisitionofafiretruckthroughthe CentralEquipmentFund.Otherwise,2014budgetedlineitemsaremuchinlinewith2013expected expenditures. BUDGET: GENERALFUND201020112012201320132014% FIREActualActualActualBudgetProjectedBudgetChange PersonnelServices111,332$111,705$107,163$117,732$120,732$117,041$-0.6% Supplies21,26029,73941,27535,65035,65035,6500.0% OtherServices&Charges64,40554,35759,34066,82566,82569,6194.2% CapitalOutlay---8,0648,06441,300412.2% TOTALEXPENDITURES196,997$195,801$207,778$228,271$231,271$263,610$15.5% 97 MEASURABLEWORKLOADDATA: Measurement 2010 2011 2012 2013 2014 Outcome/Effectiveness: Respondentstofirecalls: City 3,244 2,859 2,270 2,887 2,300 MonticelloTownship 1,258 1,066 1,000 1,121 1,000 SilverCreekTownship 593 545 278 428 275 Otsego 90 59 271 15 0 MutualAid 451 455 803 463 80 Drills&Maintenance 1,377 1,178 1,859 1,596 1,900 Total 7,013 6,162 6,481 6,510 5,555 Efficiency: Averagerespondentspercall City 17 15 15 19 15 MonticelloTownship 20 18 19 21 20 SilverCreekTownship 19 17 15 24 14 Otsego 13 15 25 1 --- MutualAid 24 27 37 21 4 Drills&Maintenance 32 29 37 32 38 Total 20 18 21 21 19 WorkLoad: Numberoffirecalls: City 192 187 155 155 150 MonticelloTownship 63 59 53 53 50 SilverCreekTownship 32 32 18 18 20 Otsego 7 4 11 11 0 MutualAid 19 17 22 22 20 Drills&Maintenance 43 41 50 50 50 Total 356 340 309 309 290 Firefighters,numberof 30 30 30 30 30 98 FIRERELIEF DEPARTMENT:PublicSafety SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:42202 ACTIVITYSCOPE: Providingaretirementbenefittopaid-on-callvolunteers,thefirereliefactivityisspecifically designedtotrackthecity’scontributiontotheMonticelloFireReliefAssociation. OBJECTIVES: 1.ProvidepensionfundsfortheMonticelloFireReliefAssociation. ISSUES: 1.Tobecomefullyfunded. MEASURABLEWORKLOADDATA: Measurement 2010 2011 2012 2013 2014 Pensionassets 1,136,892$1,066,945$1,046,960$1,150,000$1,150,000$ Pensionliabilities 980,137$1,051,453$ Assets-liabilitiesratio 1.17 1.09 CityContribution $2,650 $2,750 $2,850 $2,900 $2,900 Firefighters,numberof 30 30 30 30 30 BUDGETCOMMENTARY: Thefirereliefbudgetconsistisbasicallyaconduitfordistributionofstatefireaidtothepensionfund forvolunteerfirefighters.Stateaidrevenueequalsthecontributiontothereliefassociation. BUDGET: GENERALFUND201020112012201320132014% FIRERELIEFActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges66,75872,64774,22170,00070,00075,0007.1% CapitalOutlay--------- TOTALEXPENDITURES66,758$72,647$74,221$70,000$70,000$75,000$7.1% 99 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: Measurement20102011201220132014 Outcome/Effectiveness: Valueofpermitsissued9,033,078$12,285,873$12,802,549$15,821,223$17,000,000$ ValueofpermitsperFTE(3)3,011,026$4,095,291$4,267,516$5,273,741$5,666,667$ Efficiency: RentalinspectionsperFTE(2)600600600671593 PermitsperFTE(2)304316329330340 WorkLoad: Buildingpermitsissued607632657659680 Nuisancenoticesissued519300250161150 Rentalunits,numberof1,2001,2001,2001,3411,186 100 BUDGETCOMMENTARY: Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Otherbudgetitems areexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% BUILDINGINSPECTIONSActualActualActualBudgetProjectedBudgetChange PersonnelServices233,847$221,442$221,596$234,746$234,746$246,322$4.9% Supplies3,5424,1212,8176,7506,7506,7500.0% OtherServices&Charges12,38219,70923,96322,14021,32531,53342.4% CapitalOutlay--------- TOTALEXPENDITURES249,771$245,272$248,376$263,636$262,821$284,605$8.0% 101 CIVILDEFENSE DEPARTMENT:CivilDefense SUPERVISOR:ChiefBuildingOfficial FUND#:101 ACTIVITY#:42501 ACTIVITYSCOPE: Thecivildefensedepartmentprovidesconstantdefensecoverageforallweatherandpowerplant relatedemergencysituationswithinthecity. OBJECTIVES: 1.Implementcityhall,communitycenter,andNationalGuardemergencypreparedness. ISSUES: 1.Littleornowarningwhenanemergencyoccurs. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: The2014budgetisbasedonthe2013budget.Personnelserviceswereunderbudgetedin2013.The retirementofthecity'spreviouschiefbuildingofficial,muchofthisactivity'sresponsibilitieshave beentransferredtoWrightCounty.Thecityisanactiveparticipanttheemergencymanagement team. BUDGET: GENERALFUND201020112012201320132014% CIVILDEFENSEActualActualActualBudgetProjectedBudgetChange PersonnelServices1,120$1,541$1,991$-$-$1,612$--- Supplies2,02523,749-1001001000.0% OtherServices&Charges1,9471,5337281,8251,8252,12416.4% CapitalOutlay--------- TOTALEXPENDITURES5,092$26,823$2,719$1,925$1,925$3,836$99.3% 102 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: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: Thelargestbudgeteditemisforthe$39,015budgetedfortheprofessionalservicecontracttohandle allanimalcontrolissuesforthecityofMonticello.Theremainingbudgeteditemsareformaintaining theanimalcontrolfacilityandmiscellaneousexpensesrelatedtoanimalcontrol. BUDGET: GENERALFUND201020112012201320132014% ANIMALCONTROLActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies1,9012,8763,7952,9752,9752,550-14.3% OtherServices&Charges42,66042,95345,79943,36043,36046,4727.2% CapitalOutlay--------- TOTALEXPENDITURES44,561$45,829$49,594$46,335$46,335$49,022$5.8% 103 NATIONALGUARD DEPARTMENT:NationalGuard SUPERVISOR:ProjectCoordinator FUND#:101 ACTIVITY#:42701 ACTIVITYSCOPE: TheNationalGuardfacilityishousedintheMonticelloCommunityCentercomplex.Thecity maintainsthefacilityfortheGuard. OBJECTIVES: 1.Tomaintainaclean,modernfacilityforusebytheNationalGuard. ISSUES: 1.TherearenocurrentissuestomaintainingtheNationalGuardfacility. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: TheNationalGuardoperatesasecuritydivisionwithintheMonticelloCommunityCentercomplex. ThecitymaintainstheGuard’ssitewithinthecomplex.Thebudgetforthisactivityisrelativelystatic. BUDGET: GENERALFUND201020112012201320132014% NATIONALGUARDActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies4482111873003003000.0% OtherServices&Charges27,01020,45714,10021,95021,95021,9500.0% CapitalOutlay--------- TOTALEXPENDITURES27,458$20,668$14,287$22,250$22,250$22,250$0.0% 104 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: Measurement20102011201220132014 Cityprojectsstarted3410105 Cityprojectscompleted445510 105 BUDGETCOMMENTARY: Thedecreaseinpersonnelservicesreflectsthenon-replacementpublicworksdirector.Thedecrease inotherservicesandchargesreflectsthere-allocationofinsurance(property,liabilityandvehicle) expensespreviouslyaggregatedintothisactivityforallofpublicworks.Thepersonnelservices budgetincludesafullstepincreasewitha1%cost-of-livingincreaseanda5%healthinsurance benefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% PW-ADMINISTRATIONActualActualActualBudgetProjectedBudgetChange PersonnelServices214,125$170,955$158,837$178,845$178,845$87,419$-51.1% Supplies4,4113,0843,5144,2004,2004,3002.4% OtherServices&Charges17,5987,60014,10641,92541,92527,571-34.2% CapitalOutlay--------- TOTALEXPENDITURES236,134$181,639$176,457$224,970$224,970$119,290$-47.0% 106 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: Measurement20102011201220132014 Servicerequests758510010085 On-lineservicerequests857010010085 Activeimprovementprojects78101010 Drivewaypermitsissued8336 Right-of-waypermitsissued9274127127100 Gradingpermitsissued2210108 107 BUDGETCOMMENTARY: Theengineeringactivitypredominantlyconsistsofengineeringandotherprofessionalservicefees. Theseexpendituresconsistofbothreimbursableandnon-reimbursableexpenditures.For2014,the engineeringbudgetdecreasessubstantiallywiththeeliminationoftwopositions.Consequently, professionalserviceswillincreasetooffsetmuchofsavingsrealizedbyeliminationofthetwo positions.Fundsarebudgetedforcontinuedimprovementsanddevelopmentofthecity'sGIS system. BUDGET: GENERALFUND201020112012201320132014% PW-ENGINEERINGActualActualActualBudgetProjectedBudgetChange PersonnelServices157,527$134,793$152,714$152,361$152,361$6,635$-95.6% Supplies1,770585291501501500.0% OtherServices&Charges8,79885,22747,04460,92560,925130,131113.6% CapitalOutlay--------- TOTALEXPENDITURES168,095$220,078$200,287$213,436$213,436$136,916$-35.9% 108 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. 109 MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Projectinspectionshours1,2001,2001,4001,4001,400 Projectpre-designhours8080800800800 Snow&Iceremoval208101010 Projectfile/planscanning30150200200200 Excavationpermitapps3840505050 Designreview/updates2030404040 Mapplottings30084100100100 BUDGETCOMMENTARY: The2014decreaseinthepersonnelservicesreflectstheeliminationofafull-timepositionprevious splitbetweenengineeringandinspections.Thepersonnelservicesbudgetincludesafullstep increasewitha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% PW-INSPECTIONSActualActualActualBudgetProjectedBudgetChange PersonnelServices86,395$37,653$57,701$105,202$105,202$69,018$-34.4% Supplies2,7443,0764,1947,3507,3507,3500.0% OtherServices&Charges2,8475,0202,93212,74012,74017,66038.6% CapitalOutlay--------- TOTALEXPENDITURES91,986$45,749$64,827$125,292$125,292$94,028$-25.0% 110 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: Measurement20102011201220132014 Poundsofcracksealer20,00015,00023,10023,10020,000 Sq.yardsofchipsealing75,00060,00078,50078,50075,000 Milesofstreets68.068.068.068.068.0 Tonsofblacktoppatching200200193193200 111 BUDGETCOMMENTARY: Partoftheincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservices andinsurances(property,liabilityandvehicle).Additionally,budgetedstreetrepairsand maintenanceincreasedfrom$96,000in2013to$162,000in2014.Thepersonnelservicesbudget includesafullstepincreasewitha1%cost-of-livingincreaseanda5%healthinsurancebenefitcost increase.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% PW-STREETS&ALLEYS ActualActualActualBudgetProjectedBudgetChange PersonnelServices368,342$376,192$397,902$421,439$421,439$445,583$5.7% Supplies126,089145,336152,142147,975147,975173,05016.9% OtherServices&Charges84,28578,631105,126124,250124,250221,31778.1% CapitalOutlay-15,677-31,93531,93535,20010.2% TOTALEXPENDITURES578,716$615,836$655,170$725,599$725,599$875,150$20.6% 112 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: Measurement20102011201220132014 Inchesofsnow5075292946 Plowingevents,numberof20307716 Tonsofsaltused400450325325375 Tonsofsandused600600370370485 BUDGETCOMMENTARY: Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Otherbudgetitems areexpectedtoremainclosetoprioryearlevels. 113 BUDGET: GENERALFUND201020112012201320132014% PW-ICE&SNOWActualActualActualBudgetProjectedBudgetChange PersonnelServices124,885$103,638$76,146$132,215$132,215$145,298$9.9% Supplies63,95369,68652,80485,00085,00088,5004.1% OtherServices&Charges2815184,2432,3002,3003,33845.1% CapitalOutlay--------- TOTALEXPENDITURES189,119$173,842$133,193$219,515$219,515$237,136$8.0% 114 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: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Otherbudgetitems areexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% PW-SHOP&GARAGEActualActualActualBudgetProjectedBudgetChange PersonnelServices96,443$104,360$104,605$88,919$88,919$92,301$3.8% Supplies27,56140,75839,30039,00039,00039,0000.0% OtherServices&Charges56,04740,07375,74155,85055,85059,2826.1% CapitalOutlay--------- TOTALEXPENDITURES180,051$185,191$219,646$183,769$183,769$190,583$3.7% 115 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: Measurement20102011201220132014 Stormwatermainmiles1/4city1/4city1/4city1/4city1/4city Cleanseptormanholes44444 GPSstormstructures1/4city1/4city1/4city1/4city1/4city Stormwatermanhole maintenance1/4city1/4city1/4city1/4city1/4city Stormwatermainlocates100100100100100 BUDGETCOMMENTARY: The2014budgetforthestormwateractivityisforgeneralmaintenanceofthecity'sstormwater system.ThecleaningandrestorationofholdingpondswillbepaidfromtheStormWaterAccess Fundin2014.Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafull stepincreasewitha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels. 116 BUDGET: GENERALFUND201020112012201320132014% PW-STORMWATERActualActualActualBudgetProjectedBudgetChange PersonnelServices13,079$12,705$18,451$21,558$21,558$22,490$4.3% Supplies2,0732,1152,0685,0005,0006,00020.0% OtherServices&Charges1,0421,73330,9494,6504,6504,6500.0% CapitalOutlay--------- TOTALEXPENDITURES16,194$16,553$51,468$31,208$31,208$33,140$6.2% 117 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: Measurement20102011201220132014 City-ownedparkinglots55555 BUDGETCOMMENTARY: Theparkinglotsbudgetissimilartoprioryearsexceptforareductionincapitaloutlay. BUDGET: GENERALFUND201020112012201320132014% PW-PARKINGLOTSActualActualActualBudgetProjectedBudgetChange PersonnelServices868$826$260$1,701$1,701$1,703$0.1% Supplies50284-3,0003,0003,0000.0% OtherServices&Charges4,27610,6384,3084,6004,6004,6000.0% CapitalOutlay--------- TOTALEXPENDITURES5,194$11,748$4,568$9,301$9,301$9,303$0.0% 118 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: Measurement20102011201220132014 Streetlightsmaintained100126150150150 Streetscapelights5050505060 BUDGETCOMMENTARY: Electricitycostsforthestreetlightsarethelargestexpenditureat$175,000.Theremainingfundsare forrepairandmaintenanceorsupplies. BUDGET: GENERALFUND201020112012201320132014% PW-STREETLIGHTINGActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$3,793$-$-$-$--- Supplies13,2871,2712,34910,00010,00010,0000.0% OtherServices&Charges185,606204,715190,637206,500206,500212,5002.9% CapitalOutlay--------- TOTALEXPENDITURES198,893$205,986$196,779$216,500$216,500$222,500$2.8% 119 PUBLICWORKS–REFUSECOLLECTION DEPARTMENT:PublicWorks SUPERVISOR:RefuseCollection FUND#:101 ACTIVITY#:43230 ACTIVITYSCOPE: Thecitycontractswithaprivatecompanyforresidentialrefusecollectionandrecyclingservices. OBJECTIVES: 1.Researchexpandingcityhaulerscontractedservicepricestobusinessanddeterminethe percentageofparticipationtoachieveadesirablerate. ISSUES: 1.Wearandtearoncitystreets. 2.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: Thecity'srefusehaulertookovertherecyclingandgarbagecartmaintenanceandreplacementin 2010,resultinginalowerbudgetforpersonnelservicesandsupplies.Thebalanceofthe expendituresisbasedonthecontractthecityhaswithitsrefusehauler. BUDGET: GENERALFUND201020112012201320132014% REFUSECOLLECTIONActualActualActualBudgetProjectedBudgetChange PersonnelServices1,760$-$719$1,034$1,034$1,037$0.3% Supplies2,822-1321,1001,1001,1000.0% OtherServices&Charges530,321495,693499,186515,426515,426519,2600.7% CapitalOutlay--------- TOTALEXPENDITURES534,903$495,693$500,037$517,560$517,560$521,397$0.7% 120 COMMUNITYCELEBRATIONS DEPARTMENT:RecreationandCulture SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:45130 ACTIVITYSCOPE: Thecommunitycelebrationsactivitycoordinatesandparticipatesincitycelebrations,sharingtheholiday spiritthroughoutthecommunity. OBJECTIVES: 1.VaryactivitiesandincreasetheparticipationofWalk'n'Roll. 2.ExpandoncitypresenceandinformationatWalk'n'Roll. 3.Maintainholidaydecorationsthroughoutthecity. 4.ResearchinvolvementinswanfeedingandSwanParkactivitiesinconjunctionwiththe chamberofcommerce. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Walk&Rollparticipants500700750750750 Businessbooths,numberof5560707070 BUDGETCOMMENTARY: ThecommunitycelebrationsbudgetincludesexpendituresforWalk'n'Roll,theRiverfestBlockParty, andtomaintainholidaydecorations. BUDGET: GENERALFUND201020112012201320132014% CELEBRATIONSActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies000000--- OtherServices&Charges1,359395,1653,3003,3003,3000.0% CapitalOutlay000000--- TOTALEXPENDITURES1,359$39$5,165$3,300$3,300$3,300$0.0% 121 SENIORCENTER DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45175 ACTIVITYSCOPE: TheseniorcenterfacilityishousedintheMonticelloCommunityCentercomplex.Thefacilityis maintainedbycity. OBJECTIVES: 1.Tomaintainaclean,modernfacilityforusebyMonticello’sseniorcitizens. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20092011201220132014 Outcomes/Effectiveness Volunteershours7,1767,5118,0587,9458,100 Dinnersserved6,1085,9235,3474,2234,500 Efficiency: Duplicatedparticipants peractivity2019191920 Unduplicatedparticipants peractivity160161166165168 WorkLoad: Unduplicatedparticipants2,0892,1022,1232,1642,150 Duplicatedparticipants16,84317,33418,26618,52218,500 Receivedphonecalls4,8314,7904,7274,7904,700 Activitiesoffered105108110112110 BUDGETCOMMENTARY: Theseniorcenterrentsspacewithinthecommunitycentercomplex.Thecitymaintainsandinsures theseniorcenter.Inaddition,thecitygivesanannualcontributiontothegroupmanagingthesenior center,whichisbudgetedat$52,500for2014.Further,thecityiscontributing$5,000tofloor replacementproject. 122 BUDGET: GENERALFUND201020112012201320132014% SENIORCENTERActualActualActualBudgetProjectedBudgetChange PersonnelServices428$-$1,285$545$545$547$0.4% Supplies--------- OtherServices&Charges72,70893,17187,15690,47590,47596,4756.6% CapitalOutlay--------- TOTALEXPENDITURES73,136$93,171$88,441$91,020$91,020$97,022$6.6% 123 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: Measurement20102011201220132014 Adultrides1,8041,9841,4351,8792,000 60+rides2,3502,7203,1593,0013,000 Disable/wheelchairrides253146636780600 Studentrides1,3611,7681,0551,4811,500 BUDGETCOMMENTARY: Thecity’s$3,0002014contributionwillhelppurchaseanewbusfortheMonticelloroute. BUDGET: GENERALFUND201020112012201320132014% TRANSIT-RIVERRIDERActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies000000--- OtherServices&Charges0003,0003,0003,0000.0% CapitalOutlay000000--- TOTALEXPENDITURES-$-$-$3,000$3,000$3,000$0.0% 124 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: Measurement20102011201220132014 Parklandacresmaintained180180180180180 Trailmilesmaintained16.516.516.516.516.5 Parkeventsheld130130150150150 Winterskatingdays12090125125125 BUDGETCOMMENTARY: Theparksbudgetconsistsofexpensesneededtomaintaincityparksandtrails.The2014budgetis consistentwiththe2013budgetandpastexpenditurelevels.In2014,capitaloutlayreflectsthe acquisitionofmowersandothercapitalequipmentthroughtheCentralEquipmentinternalservice fund.Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservices andinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstep increasewitha1%cost-of-livingincreaseanda5%healthinsurancebenefitcostincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels. 125 BUDGET: GENERALFUND201020112012201320132014% PARK-OPERATIONSActualActualActualBudgetProjectedBudgetChange PersonnelServices331,320$359,055$360,575$398,271$398,271$433,219$8.8% Supplies69,63384,113111,325111,775111,775114,7752.7% OtherServices&Charges50,248115,98856,10181,57581,575116,44142.7% CapitalOutlay---14,15527,60032,400128.9% TOTALEXPENDITURES451,201$559,156$528,001$605,776$619,221$696,835$15.0% 126 PARKBALLFIELDS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45203 ACTIVITYSCOPE: Theparkballfieldsactivitypreparesandmaintainscityathleticfields,includingtheNSPBallfield. OBJECTIVES: 1.Prepareandmaintaincityathleticfields. 2.Improvethestructuresattheballfields. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Ballgamesplayed,numberof550580600600600 BUDGETCOMMENTARY: The2014budgetreflectpastexpenditurelevelsandissimilartothe2013budgetformaintainingthe fieldsandconcessionactivitiesplusincreasesparkactivities.Capitaloutlayexpendituresin2014are fordugoutroofsattheXcelballfields. BUDGET: GENERALFUND201020112012201320132014% PARK-BALLFIELDSActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies5,4918,3025,74414,85014,85014,8500.0% OtherServices&Charges8,69710,24423,67511,95011,95011,9500.0% CapitalOutlay---15,50015,5006,000-61.3% TOTALEXPENDITURES14,188$18,546$29,419$42,300$42,300$32,800$-22.5% 127 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: Measurement20102011201220132014 Treesplanted425265450450450 Treesremoved200225200200200 Studentsinprograms375400425425425 128 BUDGETCOMMENTARY: AportionofthetotaltimeofparkemployeesisallocatedtotheShadeTreeactivity.Thepersonnel servicesbudgetincludesafullstepincreasewitha1%cost-of-livingincreaseanda5%health insurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND201020112012201320132014% SHADETREEActualActualActualBudgetProjectedBudgetChange PersonnelServices27,189$36,646$32,228$32,542$32,542$36,545$12.3% Supplies9222,0327,6802,4502,4502,4500.0% OtherServices&Charges6,3495,80113,07512,80012,80013,0742.1% CapitalOutlay--------- TOTALEXPENDITURES34,460$44,479$52,983$47,792$47,792$52,069$8.9% 129 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 2010 2011 2012 2013 2014 Checkedoutitems 248,327 222,886 237,938 236,220 235,000 Numberofrequestsplaced 14,653 12,205 11,572 11,481 11,400 Summerreadingparticipants 795 719 891 840 800 Patronsusingwireless 1,926 1,902 2,309 2,270 2,250 Patronsusinginternetstations 15,052 13,573 9,809 9,193 8,500 Programsoffered 165 156 149 173 160 Programparticipantsenrolled 3,426 4,298 3,761 3,773 3,700 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloLibrary.ThecitycontractswithGreatRiverRegionalLibrary Systemforallinformationsourcesandoperations.Thecityownsandmaintainsthebuildingthe libraryishousedinandfundssomeyouthprograms.The2014budgetissimilartothe2013budget andpastexpenditures. BUDGET: GENERALFUND201020112012201320132014% LIBRARYActualActualActualBudgetProjectedBudgetChange PersonnelServices7,910$6,944$5,819$9,692$9,692$9,137$-5.7% Supplies5,1391,5622,5031,9001,9001,9000.0% OtherServices&Charges24,52927,78121,39328,50528,50527,911-2.1% CapitalOutlay--------- TOTALEXPENDITURES37,578$36,287$29,715$40,097$40,097$38,948$-2.9% 130 INSURANCE DEPARTMENT:Other SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:49240 ACTIVITYSCOPE: ThisactivityaccountsforavarietyofundistributedGeneralFundinsurancescosts. OBJECTIVES: 1.Toaccuratelydistributeinsurancecoststoallactivitiesbyfund. ISSUES: 1.Purchasingtheproperlevelofinsurancecoveragewiththeappropriatedeductiblesatthe lowestpossiblecosts. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: In2014,otherservicesandchargesincreasedsignificantlyfromtheredistributionofsomeinsurance coststotheGeneralFund.Aneffectivesafetyprogramadministeredbythehumanresource managerhasresultedinadeclineofworkerscompensationinsurancecosts.Additionally,liability insurancedecreasedslightlyandpropertyinsuranceincreasedslightly. BUDGET: GENERALFUND201020112012201320132014% INSURANCEActualActualActualBudgetProjectedBudgetChange PersonnelServices83,015$71,972$69,712$25,000$25,000$-$-100.0% Supplies--------- OtherServices&Charges148,630178,015164,00572,26072,2609,016-87.5% CapitalOutlay--------- TOTALEXPENDITURES231,645$249,987$233,717$97,260$97,260$9,016$-90.7% 131 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 132 SPECIALREVENUEFUNDS-SUMMARY DESCRIPTION Thecitycurrentlyhasfiveactivespecialrevenuefunds.Specialrevenuefundsareusedtoaccountforthe proceedsofspecificrevenuesourcesthatarerestrictedorcommittedtoexpendituresforspecificpurposes otherthandebtserviceorcapitalprojects.UnliketheGeneralFund,thebudgetsofspecialrevenuefundsdo notalwaysbalance--revenuesequalexpenditures.Specialrevenuefundsusethemodifiedaccrualbasisof accountingforbothfinancialreportingandbudgetingpurposes. BUDGETISSUES Eachspecialrevenuefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY SPECIALREVENUEFUNDS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes1,049,658$1,048,883$1,197,239$1,170,000$1,170,000$1,390,000$18.8% TaxIncrements1,165,2031,050,5631,052,110681,240966,934672,494-1.3% Licenses&Permits--------- IntergovernmentalRevenues71,092538,487------- ChargesforServices1,428,3981,559,6741,561,4511,662,7501,675,9501,729,8004.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous410,482611,403418,756157,600158,600258,66464.1% OperatingTransfers505,301-1,423,833780,0001,017,000637,500-18.3% DebtProceeds--------- TOTALREVENUES4,630,134$4,809,010$5,653,389$4,451,590$4,988,484$4,688,458$5.3% EXPENDITURES PersonnelServices1,164,826$1,213,658$1,201,215$1,360,036$1,254,879$1,286,482$-5.4% Supplies190,356218,878179,301242,050243,050257,8506.5% OtherServices&Charges613,904912,948589,770466,111530,610587,91226.1% CapitalOutlay884,5871,670,2272,096,0721,017,4651,873,280910,443-10.5% OperatingTransfers1,488,4881,228,7791,914,2641,649,4031,729,8041,368,353-17.0% TOTALEXPENDITURES4,342,161$5,244,490$5,980,622$4,735,065$5,631,623$4,411,040$-6.8% FUNDBALANCE-JANUARY1$9,735,37010,023,343$9,587,863$9,260,630$9,260,630$8,617,491$ Excess(Deficiency)of RevenuesoverExpenditures287,973(435,480)(327,233)(283,475)(643,139)277,418 FUNDBALANCE-DECEMBER3110,023,343$9,587,863$9,260,630$8,977,155$8,617,491$8,894,909$ 133 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. 134 MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Taxincrementscollected1,165,203$1,050,563$1,052,110$966,934$672,494$ ActiveTIFDistricts1415131212 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloEconomicDevelopmentAuthorityprogramsandgeneral administrationactivities.Thedetailofeachindividualtaxincrementfinancingdistrictisincludedin theappendixofthisdocument.ThemainrevenuesourcefortheEDAFundistaxincrementsfrom thevariousdistricts.Expendituresincludeadministrationcosts,pay-as-you-gopaymentstothe variousdevelopmentprojectsandatransfertothedebtservicefundsforitsshareofthe2005 improvementbond,whichfinancedaninterchangeprojectwithinataxincrementdistrict.Thefuture declineintaxincrementsistheresultofTIFdistrictdecertificationorindividualparceldecertification. BUDGET: EDAFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGET PROJECTED BUDGET CHANGE TaxIncrements1,165,203$1,050,563$1,052,110$681,240$966,934$672,494$-1.3% Licenses&Permits--------- IntergovernmentalRevenues9,818-------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous280,923430,327293,15790,10090,100202,414124.7% OperatingTransfers5,301--80,00092,00093,00016.3% TOTALREVENUES1,461,245$1,480,890$1,345,267$851,340$1,149,034$967,908$13.7% EXPENDITURES PersonnelServices25,673$25,864$13,906$110,407$5,250$12,006$-89.1% Supplies--1,170------ OtherServices&Charges198,115465,790214,61858,20157,400108,65586.7% CapitalOutlay595,403434,460433,406288,465575,280321,94311.6% OperatingTransfers673,456316,279699,264774,403779,804278,353-64.1% TOTALEXPENDITURES1,492,647$1,242,393$1,362,364$1,231,476$1,417,734$720,957$-41.5% FUNDBALANCE-JANUARY17,271,556$7,240,154$7,478,651$7,461,554$7,461,554$7,192,854$ Excess(Deficiency)of RevenuesoverExpenditures(31,402)238,497(17,097)(380,136)(268,700)246,951 FUNDBALANCE-DECEMBER317,240,154$7,478,651$7,461,554$7,081,418$7,192,854$7,439,805$ 135 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: Measurement20102011201220132014 Motorvehicletransactions51,25053,95356,21155,26157,000 DNRtransactions5,9825,6215,4655,7275,800 Game&Fishtransactions350376509445450 Dealershipsserviced3535383838 Driver'slicensetransactions6053268149511,000 BUDGETCOMMENTARY: ThemainrevenuesourcefortheDMVisthefeeschargedfortheissuanceofvariouslicenses.In2009 theDMVbeganpartialdriver’slicenseservicesandthehopeisthatinfuturetheDMVwillbegranted fulldriver’slicensecapabilities.Thecitytransferred$325,000tootherfundstoreduceinterfund loansin2012.In2013and2014theoperatingtransfersrepresentcontributionstocommunity centerprojects.The2014personnelservicesbudgetincludesafullstepincreasewitha1%cost-of- livingincreaseanda5%healthinsurancebenefitcostincrease. 136 BUDGET: DEPUTYREGISTRAR201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices330,733365,285455,293370,050380,050380,0502.7% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous6,81420,22312,1052,0002,0001,000-50.0% OperatingTransfers--------- TOTALREVENUES337,547$385,508$467,398$372,050$382,050$381,050$2.4% EXPENDITURES PersonnelServices252,820$247,347$264,045$272,969$272,969$276,555$1.3% Supplies6,7405,7154,82514,35014,35014,3500.0% OtherServices&Charges14,41212,56713,38818,07018,07039,678119.6% CapitalOutlay--------- OperatingTransfers-97,500325,000-75,00050,000--- TOTALEXPENDITURES273,972$363,129$607,258$305,389$380,389$380,583$24.6% FUNDBALANCE-JANUARY1164,670$228,245$250,624$110,764$110,764$112,425$ Excess(Deficiency)of RevenuesoverExpenditures63,57522,379(139,860)66,6611,661467 FUNDBALANCE-DECEMBER31228,245$250,624$110,764$177,425$112,425$112,892$ 137 MINNESOTAINVESTMENTFUND DEPARTMENT:MinnesotaInvestmentFund SUPERVISOR:CommunityDevelopmentDirector FUND#:221 ACTIVITY#:46526-46528 ACTIVITYSCOPE: Followingstateandfederalguidelines,theMinnesotaInvestmentFundadministersloanstolocal businesses. OBJECTIVES: 1.TomatchavailablefundswithqualifyingbusinessesinMonticello. ISSUES: 1.NumberofqualifiedbusinessesinMonticello. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Loansoutstanding00000 BUDGETCOMMENTARY: Interestearnedoninvestments,notrepaymentofloans,istheonlyactivityanticipatedin2014. 138 BUDGET: MINNINVESTMENTFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous33,91169,56343,58825,00025,00025,0000.0% OperatingTransfers--------- TOTALREVENUES33,911$69,563$43,588$25,000$25,000$25,000$0.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES-$-$-$-$-$-$--- FUNDBALANCE-JANUARY1918,996$952,907$1,022,470$1,066,058$1,066,058$1,091,058$ Excess(Deficiency)of RevenuesoverExpenditures33,91169,56343,58825,00025,00025,000 FUNDBALANCE-DECEMBER31952,907$1,022,470$1,066,058$1,091,058$1,091,058$1,116,058$ 139 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: Measurement20102011201220132014 Customervisits,numberof183,527179,889175,596211,234200,000 Grossprogramsales167,723$168,569$162,227$192,708$200,000$ Rentalrevenue157,481$178,492$166,374$163,329$170,000$ BUDGETCOMMENTARY: TherevenuebudgetforCommunityCenter-Administrationincludesallrevenuesforthefund.The largestrevenuesourceispropertytaxes($1,390,000in2014)andmemberships($795,000).Other revenuesincludeconcessionsales,roomrentals,andprogramfees.Thisactivityalsoincludesall personnelserviceexpendituresfortheFund.Theincreaseinotherservicesandchargesreflectsthe re-allocationofexpensesforITservicesandinsurances(property,liabilityandvehicle).The2014 personnelservicesbudgetincludesafullstepincreasewitha1%cost-of-livingincreaseanda5% 140 healthinsurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryear levels.In2014,operatingtransfersinwillbeusedforgymfloorreplacementandoperatingtransfers outwillbeusedfordebtservice. BUDGET: COMMUNITYCENTER201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes1,049,658$1,048,883$1,197,239$1,170,000$1,170,000$1,390,000$18.8% Licenses&Permits--------- IntergovernmentalRevenues61,274-------- ChargesforServices1,097,6651,194,3891,106,1581,292,7001,295,9001,349,7504.4% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous69,28765,97458,96935,50036,50025,250-28.9% OperatingTransfers200,000-850,000100,000175,00050,000-50.0% TOTALREVENUES2,477,884$2,309,246$3,212,366$2,598,200$2,677,400$2,815,000$8.3% EXPENDITURES PersonnelServices886,333$940,447$923,264$976,660$976,660$997,921$2.2% Supplies183,616213,163173,306227,700228,700243,5006.9% OtherServices&Charges396,355426,961361,638389,840455,140439,57912.8% CapitalOutlay-91,5171,662,666129,000198,00094,000-27.1% OperatingTransfers815,032815,000890,000875,000875,0001,040,00018.9% TOTALEXPENDITURES2,281,336$2,487,088$4,010,874$2,598,200$2,733,500$2,815,000$8.3% FUNDBALANCE-JANUARY1959,302$1,155,850$978,008$179,500$179,500$123,400$ Excess(Deficiency)of RevenuesoverExpenditures196,548(177,842)(798,508)-(56,100)-$ FUNDBALANCE-DECEMBER311,155,850$978,008$179,500$179,500$123,400$123,400$ ADMINISTRATIONDIVISION: Administrationmanagesandtrackspayroll,maintenance,andallexpensesthatarebuildingwide, includingdebtservice,utilities,andinsurance.Thisisthegeneraloperatingactivityforthe communitycenter. COMMUNITYCENTER201020112012201320132014% ADMINISTRATIONActualActualActualBudgetProjectedBudgetChange PersonnelServices886,333$940,447$923,264$976,660$976,660$997,921$2.2% Supplies97,692102,46485,249112,600113,600112,6000.0% OtherServices&Charges338,052386,256330,834350,790416,090402,56914.8% CapitalOutlay-74,2611,662,66629,000118,00024,000-17.2% OperatingTransfers815,032815,000890,000875,000875,0001,040,00018.9% TOTALEXPENDITURES2,137,109$2,318,428$3,892,013$2,344,050$2,499,350$2,577,090$9.9% 141 PROGRAMMINGDIVISION: Thecommunitycenterprogrammingactivityprovideseducational,recreational,andprofessional activitiestoavarietyofusers.Theprogrammingactivitymanagesspecificcoststhatpertainto programsofferedatthecommunitycenter,aswellasexpendituresdirectlyattributableto programmedareasofthefacility,i.e.indoorplay,fitnessarea,andpool.Facilityconcession expendituresarealsoincluded. COMMUNITYCENTER201020112012201320132014% PROGRAMMINGActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies67,64893,72172,05496,70096,700112,50016.3% OtherServices&Charges51,50935,73825,90432,35032,35030,350-6.2% CapitalOutlay-17,256-100,00080,00070,000-30.0% OperatingTransfers--------- TOTALEXPENDITURES119,157$146,715$97,958$229,050$209,050$212,850$-7.1% NSPBALLFIELDCONSCESSIONSDIVISION: Ballfieldconcessionstrackstheexpenditures,exceptpayrollandemployeeexpenditures,forballfield concessions,whichatthistimeareonlylocatedattheNSP(Xcel)Ballfields.Theconcessionsprovide snackfooditemsduringscheduledsoftball,baseball,andfootballgamesand/orpractices. COMMUNITYCENTER201020112012201320132014% NSPBALLFIELDActualActualActualBudgetProjectedBudgetChange PersonnelServices-$-$-$-$-$-$--- Supplies18,27616,97816,00318,40018,40018,4000.0% OtherServices&Charges6,7944,9674,9006,7006,7006,660-0.6% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES25,070$21,945$20,903$25,100$25,100$25,060$-0.2% 142 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: Measurement20102011201220132014 Dataunderdevelopment BUDGETCOMMENTARY: Themajorrevenuesourceisnormallyparkdedicationfees.However,duetotheeconomicconditions andlackofnewdevelopment,for2014themainrevenuesourcewillbeanoperatingtransfertohelp fundthepurchaseoftheBertramChainofLakesproperty.The2014expendituresincludepathway andparkimprovementsandfuturepropertypurchasesatBertramChainofLakes. 143 BUDGET: PARK&PATHWAYDEDICATION201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues-538,487------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous19,54725,31610,9375,0005,0005,0000.0% OperatingTransfers300,000-573,833600,000750,000494,500-17.6% TOTALREVENUES319,547$563,803$584,770$605,000$755,000$499,500$-17.4% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges5,0227,630126------ CapitalOutlay289,1841,144,250-600,0001,100,000494,500-17.6% OperatingTransfers--------- TOTALEXPENDITURES294,206$1,151,880$126$600,000$1,100,000$494,500$-17.6% FUNDBALANCE-JANUARY1420,846$446,187$(141,890)$442,754$442,754$97,754$ Excess(Deficiency)of RevenuesoverExpenditures25,341(588,077)584,6445,000(345,000)5,000 FUNDBALANCE-DECEMBER31446,187$(141,890)$442,754$447,754$97,754$102,754$ 144 DEBTSERVICEFUNDS-SUMMARY DESCRIPTION Debtservicesfundsareusedtoaccountfortheaccumulationofresourcesforthepaymentofgenerallong- termdebt,excludingdebtissuedforandservicedbyanenterprisefund.Debtservicefundsusethemodified accrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecitycurrentlyhassixactive debtservicefunds. BUDGETISSUES Thecity'sbondratingwasdowngradedfromAa3toA2in2012byMoody'sInvestorServices.Thecityhadtwo debtissuesin2013:G.O.revenuebondsforsewagetreatmentplantimprovementsandcapitalequipment notesforqualifyingequipment.Further,onebondissuewasredeemed.In2011,thecityissueddebtto advancecross-overrefund2005AG.O.ImprovementBonds,whichwerecalledinFebruaryof2013.See individualfundsforthebudgetissuesfacingeachdebtservicefunds.Thecityexpectstoissuejudgmentbonds inthelatterhalfof2014tosettleclaimsrelatedtothetelecommunicationbonds. BUDGETSUMMARY DEBTSERVICEFUNDS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes1,170,197$1,088,381$1,260,284$1,190,000$1,190,000$1,263,000$6.1% Licenses&Permits--------- IntergovernmentalRevenues65,531-------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments702,9321,143,6831,047,949744,850878,160756,3751.5% Miscellaneous481,438253,172236,018234,100244,513230,200-1.7% OperatingTransfers3,354,1433,119,1803,747,3263,432,0744,253,4893,478,9881.4% DebtProceeds510,00011,036,910------- TOTALREVENUES6,284,241$16,641,326$6,291,577$5,601,024$6,566,162$5,728,563$2.3% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges14,530-------- CapitalOutlay--------- DebtService7,384,8416,236,9856,464,93016,911,11717,024,5926,064,853-64.1% OperatingTransfers530,519-------- TOTALEXPENDITURES7,929,890$6,236,985$6,464,930$16,911,117$17,024,592$6,064,853$-64.1% FUNDBALANCE-JANUARY1$4,367,5552,721,906$13,126,247$12,952,894$12,952,894$2,494,464$ Excess(Deficiency)of RevenuesoverExpenditures(1,645,649)10,404,341(173,353)(11,310,093)(10,458,430)(336,290) FUNDBALANCE-DECEMBER312,721,906$13,126,247$12,952,894$1,642,801$2,494,464$2,158,174$ 145 2007AG.O.IMPROVEMENTBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:313 ACTIVITY#:47000 ACTIVITYSCOPE: The2007AG.O.ImprovementBondfinancedvariousinfrastructureimprovementsincludingstreet andutilitiesimprovements,astoragebuildingandmixingequipmentatthesewagetreatmentplant, andrefundedthe2000AImprovementBond.ThedebtserviceschedulecallsforFebruaryprincipal paymentsandFebruaryandAugustinterestpaymentsthroughtheyear2018,withacallfeatureof February2016.Theremaininginterestrateonbondcouponsis4.00%.Therevenuesourceisspecial assessmentsagainstbenefitedproperties,sewerrevenuesandpropertytaxes. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2007AG.0.ImprovementBondsincludespecialassessments, transfersfromthecity'sSewageFund,andpropertytaxes.Theonlyexpendituresareforthe2014 principalandinterestpaymentsforthisdebtissue. 146 BUDGET: 2007AIMPROVEMENTBOND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes391,843$396,736$431,051$425,000$425,000$540,000$27.1% Licenses&Permits--------- IntergovernmentalRevenues23,654-------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments241,200404,673162,335154,865126,775122,022-21.2% Miscellaneous(14,274)(24,623)(9,666)------ OperatingTransfers--140,000------ DebtProceeds--------- TOTALREVENUES642,423$776,786$723,720$579,865$551,775$662,022$14.2% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges126-------- CapitalOutlay--------- DebtService689,945686,400623,670735,400735,400736,1000.1% OperatingTransfers--------- TOTALEXPENDITURES690,071$686,400$623,670$735,400$735,400$736,100$0.1% FUNDBALANCE-JANUARY1174,148$126,500$216,886$316,936$316,936$133,311$ Excess(Deficiency)of RevenuesoverExpenditures(47,648)90,386100,050(155,535)(183,625)(74,078) FUNDBALANCE-DECEMBER31126,500$216,886$316,936$161,401$133,311$59,233$ REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotalPrincipalInterestPrincipalInterest 2/1/2014620,000$64,000$4.00%684,000$90,000$9,800$530,000$54,200$ 8/1/201451,60051,6008,000-43,600 2/1/2015640,00051,600 4.00%691,60095,0008,000545,00043,600 8/1/201538,80038,8006,100-32,700 2/1/2016665,00038,800 4.00%703,800100,0006,100565,00032,700 8/1/201625,50025,5004,100-21,400 2/1/2017625,00025,500 4.00%650,500100,0004,100525,00021,400 8/1/201713,00013,0002,100-10,900 2/1/2018650,00013,000 4.00%663,000105,0002,100545,00010,900 Total3,200,000$321,800$3,521,800$490,000$50,400$2,710,000$271,400$ GOBonds,Series2007A RevenuePortion(Sewage)Non-RevenuePortion 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: RevenuesgeneratedbytheMonticelloCommunityCenterandatransferofpropertytaxessupport annualdebtservicepayments.Theonly2014expendituresareforprincipalandinterestpayments. 148 BUDGET: 2008AREVENUEREFUNDING201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous21,91120,9791,9875,0002,500500-90.0% OperatingTransfers805,000815,000890,000875,000875,0001,040,00018.9% DebtProceeds--------- TOTALREVENUES826,911$835,979$891,987$880,000$877,500$1,040,500$18.2% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges268-------- CapitalOutlay--------- DebtService807,6351,102,0801,100,8801,079,1201,079,1201,037,860-3.8% OperatingTransfers--------- TOTALEXPENDITURES807,903$1,102,080$1,100,880$1,079,120$1,079,120$1,037,860$-3.8% FUNDBALANCE-JANUARY1655,408$674,416$408,315$199,422$199,422$(2,198)$ Excess(Deficiency)of RevenuesoverExpenditures19,008(266,101)(208,893)(199,120)(201,620)2,640 FUNDBALANCE-DECEMBER31674,416$408,315$199,422$302$(2,198)$442$ REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotal 2/1/2014990,000$31,600$3.20%1,021,600$ 8/1/201415,76015,760 2/1/2015985,00015,7603.20%1,000,760 Total1,975,000$63,120$2,038,120$ PublicProjectRefundingBonds,Series2008A 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2008AG.O.SewerRevenueRefundingBondsincludeatransfer fromthecitySewerAccessFundandpropertytaxes.Theonlyexpendituresareforthe2014principal andinterestpaymentsforthisdebtissue. 150 BUDGET: 2008G.O.SEWERREFUNDING201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes472,120$410,446$517,039$500,000$500,000$500,000$0.0% Licenses&Permits--------- IntergovernmentalRevenues27,540-------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous20,67146,17819,3195,0005,0005,0000.0% OperatingTransfers400,137524,590450,000450,000450,000450,0000.0% DebtProceeds--------- TOTALREVENUES920,468$981,214$986,358$955,000$955,000$955,000$0.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService1,049,2391,049,1791,048,4861,050,2411,050,2411,049,593-0.1% OperatingTransfers--------- TOTALEXPENDITURES1,049,239$1,049,179$1,048,486$1,050,241$1,050,241$1,049,593$-0.1% FUNDBALANCE-JANUARY1919,568$790,797$722,832$660,704$660,704$565,463$ Excess(Deficiency)of RevenuesoverExpenditures(128,771)(67,965)(62,128)(95,241)(95,241)(94,593) FUNDBALANCE-DECEMBER31790,797$722,832$660,704$565,463$565,463$470,870$ REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotal 2/1/2014443,000$81,362$3.40%524,362$ 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 Total4,786,000$458,830$5,244,830$ GOSewerRefundingBonds,Series2008B 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: Measurement20102011201220132014 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: 2010AGOIMPROVEMENTBOND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes(3,825)$49,069$51,704$20,000$20,000$-$-100.0% Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments104,028572,164192,715153,385113,90057,353-62.6% Miscellaneous(2,841)1,81020,101------ OperatingTransfers-185,960308,195308,195308,195239,595-22.3% DebtProceeds--------- TOTALREVENUES97,362$809,003$572,715$481,580$481,580$296,948$-38.3% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService-201,212460,428448,325448,325360,650-19.6% OperatingTransfers187,318-------- TOTALEXPENDITURES187,318$201,212$460,428$448,325$448,325$360,650$-19.6% FUNDBALANCE-JANUARY1-$(89,956)$517,835$630,122$630,122$663,377$ Excess(Deficiency)of RevenuesoverExpenditures(89,956)607,791112,28733,25533,255(63,702) FUNDBALANCE-DECEMBER31(89,956)$517,835$630,122$663,377$663,377$599,675$ REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotal 2/1/2014320,000$20,755$0.85%340,755$ 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 Total2,275,000$199,598$2,474,598$ GOImprovementandRefundingBonds,Series2010A 153 2011AG.O.REFUNDINGBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:312 ACTIVITY#:47000 ACTIVITYSCOPE: The2011AG.O.RefundingBondsfinancerefinancedthe2005AG.O.ImprovementBonds.Thedebt serviceschedulecallsforsemi-annualpaymentsinFebruaryandAugust.Theaverageinterestrateis 1.6112%.Therevenuesourcesincludeacombinationofimpactfees,propertytaxes,special assessments,andtaxincrements. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Thecityissued$10,735,000in2011G.O.RefundingBondstoadvancerefundthe2005AG.O. ImprovementBonds,whichwillberedeemedinFebruary2013. The2011AG.O.RefundingBond'srevenuesourcewillbeacombinationofexistingcityfunds, includingtransfersfromthethreeutilityaccessfundsandtheEconomicDevelopmentFund,a propertytaxlevy,andspecialassessments.Prioryear2005AG.O.revenuesandexpendituresare includedintheschedulepresentedinthebudgetsection.Escrowpaymentsmadein2013toredeem the2005AG.O.Bondsarealsoexcluded. 154 BUDGET: 2011AG.O.BONDFUND(2005A)201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes234,780$232,130$260,490$245,000$245,000$223,000$-9.0% Licenses&Permits--------- IntergovernmentalRevenues14,337-------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments324,831166,846692,899436,600598,000577,00032.2% Miscellaneous452,316205,219196,438224,100232,600224,7000.3% OperatingTransfers1,605,5091,593,6301,959,1311,798,8792,620,2941,749,393-2.8% DebtProceeds--------- TOTALREVENUES2,631,773$2,197,825$3,108,958$2,704,579$3,695,894$2,774,093$2.6% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges4,201-------- CapitalOutlay--------- DebtService3,178,8633,127,0463,053,2382,794,5562,908,0312,880,6503.1% OperatingTransfers--------- TOTALEXPENDITURES3,183,064$3,127,046$3,053,238$2,794,556$2,908,031$2,880,650$3.1% FUNDBALANCE-JANUARY11,771,440$1,220,149$290,928$346,648$346,648$1,134,511$ Excess(Deficiency)of RevenuesoverExpenditures(551,291)(929,221)55,720(89,977)787,863(106,557) FUNDBALANCE-DECEMBER311,220,149$290,928$346,648$256,671$1,134,511$1,027,954$ REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotal 2/1/20142,680,000$113,475$2.00%2,793,475$ 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 2/1/2023420,0006,3003.00%426,300 Total10,735,000$732,225$11,467,225$ GORefundingBonds,Series2011A 155 CLOSEDDEBTSERVICEFUNDS CLOSEDFUNDSINCLUDEDINSUMMARYTOTAL: 2002G.O.ImprovementBondFund 2003AG.O.ImprovementBondFund 2004AG.O.TaxableTaxIncrementBond 2011AG.O.RefundingBond–EscrowPayments CLOSEDFUNDSSUMMARYTOTAL: CLOSEDDEBTSERVICE201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes75,279$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments32,873-------- Miscellaneous3,6553,6097,839-4,413---- OperatingTransfers543,497-------- DebtProceeds510,00011,036,910------- TOTALREVENUES1,165,304$11,040,519$7,839$-$4,413$-$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges9,935-------- CapitalOutlay--------- DebtService1,659,15971,068178,22810,803,47510,803,475--100.0% OperatingTransfers343,201-------- TOTALEXPENDITURES2,012,295$71,068$178,228$10,803,475$10,803,475$-$-100.0% FUNDBALANCE-JANUARY1846,991$-$10,969,451$10,799,062$10,799,062$-$ Excess(Deficiency)of RevenuesoverExpenditures(846,991)10,969,451(170,389)(10,803,475)(10,799,062)- FUNDBALANCE-DECEMBER31-$10,969,451$10,799,062$(4,413)$-$-$ 156 CAPITALPROJECTFUNDS-SUMMARY DESCRIPTION Capitalprojectfundsareusedtoaccountforfinancialresourcesthatarerestricted,committed,orassignedto expenditureforcapitaloutlaysincludingtheacquisitionorconstructionofcapitalfacilitiesandothercapital assets—excludingcapitalassetsfinancedbyproprietaryfunds(enterpriseorinternalservice).Capitalproject fundsusethemodifiedaccrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecity currentlyhassevenactivecapitalprojectfunds. BUDGETISSUES Financingcapitalassetadditionsorreplacementsisanongoingchallenge,especiallyinanenvironmentwhere thefocusisonmaintainingalow,stablepropertytaxlevy.Seetheindividualfundsforthebudgetissuesfacing eachcapitalprojectfund. BUDGETSUMMARY TOTALCAPITALPROJECT201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes9,009$33,420$29,655$-$-$-$--- TaxIncrements-------- Franchise&OtherTaxes297,584228,216110,912130,000130,000130,0000.0% Licenses&Permits--------- IntergovernmentalRevenues244,45781,520272,186633,700633,7001,670,000163.5% ChargesforServices522,857881,348170,371154,415240,00050,000-67.6% Fines&Forfeits--------- SpecialAssessments753,076703,408844,574441,095441,095283,000-35.8% Miscellaneous399,490710,949409,222396,725326,72550,000-87.4% OperatingTransfers1,293,201922,5003,723,019766,300556,701--100.0% DebtProceeds2,745,0001,669,139------- TOTALREVENUES6,264,674$5,230,500$5,559,939$2,522,235$2,328,221$2,183,000$-13.4% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies89611,82240,215------ OtherServices&Charges425,16134,6644,61325,00025,00025,0000.0% CapitalOutlay2,773,3222,837,6521,615,0862,457,3351,762,0322,275,000-7.4% DebtService10,248103,757------- OperatingTransfers1,733,3693,040,0024,957,6502,835,4714,301,886820,800-71.1% TOTALEXPENDITURES4,942,996$6,027,897$6,617,564$5,317,806$6,088,918$3,120,800$-41.3% FUNDBALANCE-JANUARY19,147,549$10,469,227$9,671,830$8,614,205$8,614,205$4,853,508$ Excess(Deficiency)of RevenuesoverExpenditures1,321,678(797,397)(1,057,625)(2,795,571)(3,760,697)(937,800) FUNDBALANCE-DECEMBER3110,469,227$9,671,830$8,614,205$5,818,634$4,853,508$3,915,708$ 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: In2013,thecityhadonemajorprojectbudgetedfor2013:Extensionof7 th Street.Fundingfor7th Streetincludesstateaidof$633,700andoperatingtransfersof$766,300.For2014,thebudgeted intergovernmentalrevenue(statestreetaid)willbeusedforTH25/CSAH75intersection improvementsandforbeginningtheFallonOverpassproject.Thisfundiscombinedwithanother fund(ClosedBondFund)forfinancialreportingpurposes. 158 BUDGET: CAPITALPROJECTFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues-43,375238,580633,700633,7001,670,000163.5% ChargesforServices445,762613,623------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous(76,699)(67,135)24,28615,00015,000--100.0% OperatingTransfers700,000672,5003,148,680766,300556,701--100.0% DebtProceeds2,745,0001,669,139------- TOTALREVENUES3,814,063$2,931,502$3,411,546$1,415,000$1,205,401$1,670,000$18.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies896-------- OtherServices&Charges423,66833333325,00025,00025,0000.0% CapitalOutlay2,797,3292,761,6141,253,1391,400,0001,400,0001,760,00025.7% OperatingTransfers---100,000100,000--100.0% TOTALEXPENDITURES3,221,893$2,761,947$1,253,472$1,525,000$1,525,000$1,785,000$17.0% FUNDBALANCE-JANUARY1(2,124,346)$(1,532,176)$(1,362,621)$795,453$795,453$475,854$ Excess(Deficiency)of RevenuesoverExpenditures592,170169,5552,158,074(110,000)(319,599)(115,000) FUNDBALANCE-DECEMBER31(1,532,176)$(1,362,621)$795,453$685,453$475,854$360,854$ 159 SANITARYSEWERACCESSFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:401(Closedto602) ACTIVITY#:49201 ACTIVITYSCOPE: TheSanitarySewerAccessFundprovidesresourcesformajorimprovementstothesanitarysewer system.Impactfeesarecollectedonbuildingpermitsfornewconstructionandlotdevelopment. Thesefeesarealsousedtoretiredebtservicerelatedtoimprovementstothesanitarysewer system. OBJECTIVES: 1.Maintainandupgradesanitarysewersystem. 2.Retiredebtservicerelatedtosystemimprovementsinatimelymanner. ISSUES: 1.Buildingpermitsforresidentialandcommercialdevelopmenthasdeclined. 2.Sloweconomy. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesaresanitaryseweraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2008SewerRevenue RefundingBond--whichrefinancedthebondfortheconstructionoftheSewageTreatmentPlant,to the2011A(formerly2005A)RefundingImprovementBond--partoftheinterchangeproject,andto the2010AImprovementandRefinancingBond--itsshareofthe2010streetreconstructionproject. ThisfundwasclosedtotheSewageFundattheendof2013. 160 BUDGET: SANITARYSEWERACCESS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$$0-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices61,631188,267133,69978,795164,380--100.0% Fines&Forfeits--------- SpecialAssessments-844------- Miscellaneous145,489175,50682,31550,00025,000--100.0% OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES207,120$364,617$216,014$128,795$189,380$-$-100.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges-1,142------- CapitalOutlay--------- OperatingTransfers1,112,9961,309,2031,484,8871,283,3712,056,256--100.0% TOTALEXPENDITURES1,112,996$1,310,345$1,484,887$1,283,371$2,056,256$-$-100.0% FUNDBALANCE-JANUARY14,987,353$4,081,477$3,135,749$1,866,876$1,866,876$-$ Excess(Deficiency)of RevenuesoverExpenditures(905,876)(945,728)(1,268,873)(1,154,576)(1,866,876)- FUNDBALANCE-DECEMBER314,081,477$3,135,749$1,866,876$712,300$-$-$ 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesarestormseweraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2011A(formerly2005A) RefundingImprovementBond--partoftheinterchangeproject,andtothe2010AImprovementand RefinancingBond--itsshareofthe2010stormsewerproject.The2014capitaloutlaybudgetincludes pondimprovements. 162 BUDGET: STORMWATERACCESSFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices7,16952,883-50,00050,00050,0000.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous74,340126,44262,03740,00020,00020,000-50.0% OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES81,509$179,325$62,037$90,000$70,000$70,000$-22.2% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges59916,540604------ CapitalOutlay(6,067)--40,00040,00040,0000.0% OperatingTransfers264,599472,861396,073321,800321,800326,3001.4% TOTALEXPENDITURES259,131$489,401$396,677$361,800$361,800$366,300$1.2% FUNDBALANCE-JANUARY12,291,081$2,113,459$1,803,383$1,468,743$1,468,743$1,176,943$ Excess(Deficiency)of RevenuesoverExpenditures(177,622)(310,076)(334,640)(271,800)(291,800)(296,300) FUNDBALANCE-DECEMBER312,113,459$1,803,383$1,468,743$1,196,943$1,176,943$880,643$ 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesarewateraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2005AImprovement Bond,andtothe2010AImprovementandRefinancingBond--itsshareofthe2010watermain project. 164 BUDGET: WATERACCESSFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices8,29226,57536,67225,62025,620--100.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous19,5966,629(3,208)------ OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES27,888$33,204$33,464$25,620$25,620$-$-100.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges1001,022240------ CapitalOutlay--------- OperatingTransfers310,774340,303239,563-48,530---- TOTALEXPENDITURES310,874$341,325$239,803$-$48,530$-$--- FUNDBALANCE-JANUARY1820,356$537,370$229,249$22,910$22,910$-$ Excess(Deficiency)of RevenuesoverExpenditures(282,986)(308,121)(206,339)25,620(22,910)- FUNDBALANCE-DECEMBER31537,370$229,249$22,910$48,530$-$-$ 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Electricfranchisefeesprovideresourcesforlightingprojects,oftenconjunctionwithotherstreet improvementprojects.Forexample,the2013operatingtransferstootherfundsinclude$96,300for streetlightsforthe7th Streetextensionproject.Capitaloutlayfor2014includesalightingprojectfor East/WestBridgePark. 166 BUDGET: STREETLIGHTIMPROVEMENTS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Franchise&OtherTaxes297,584228,216110,912130,000130,000130,0000.0% Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous28,01580,78540,427------ OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES325,599$309,001$151,339$130,000$130,000$130,000$0.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--570------ CapitalOutlay---200,00075,00075,000-62.5% OperatingTransfers-273,060400,00096,30096,300--100.0% TOTALEXPENDITURES-$273,060$400,570$296,300$171,300$75,000$-74.7% FUNDBALANCE-JANUARY1604,078$929,677$965,618$716,387$716,387$675,087$ Excess(Deficiency)of RevenuesoverExpenditures325,59935,941(249,231)(166,300)(41,300)55,000 FUNDBALANCE-DECEMBER31929,677$965,618$716,387$550,087$675,087$730,087$ 167 STREETRECONSTRUCTIONFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:406 ACTIVITY#:43121 ACTIVITYSCOPE: TheStreetReconstructionFundwasestablishedtotrackannualimprovementstocityinfrastructure. Improvementsarebasedonanannualreconstructionschedule. OBJECTIVES: 1.Improvecitystreetsonthecapitalimprovementplan. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: PastrevenuesourceshaveincludedpropertytaxesandoperatingtransfersfromtheLiquorFund. Neitherthetaxnortransferhasbeenbudgetedfor2014.Capitaloutlayincludesannualmilland overlayimprovements. 168 BUDGET: STREETRECONSTRUCTION201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes6,310$24,867$29,655$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices3-------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous103,337247,775133,86950,00025,00025,000-50.0% OperatingTransfers250,000250,000275,000------ DebtProceeds--------- TOTALREVENUES359,650$522,642$438,524$50,000$25,000$25,000$-50.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--37------ CapitalOutlay---350,000-400,00014.3% OperatingTransfers-192,5751,862,005434,000219,000--100.0% TOTALEXPENDITURES-$192,575$1,862,042$784,000$219,000$400,000$-49.0% FUNDBALANCE-JANUARY12,641,180$3,000,830$3,330,897$1,907,379$1,907,379$1,713,379$ Excess(Deficiency)of RevenuesoverExpenditures359,650330,067(1,423,518)(734,000)(194,000)(375,000) FUNDBALANCE-DECEMBER313,000,830$3,330,897$1,907,379$1,173,379$1,713,379$1,338,379$ 169 CAPITALOUTLAYREVOLVINGFUND DEPARTMENT:CapitalOutlayRevolvingFund SUPERVISOR:CityAdministrator/FinanceDirector FUND#:407(Closedto703) ACTIVITY#:49201 ACTIVITYSCOPE: TheCapitalOutlayRevolvingFundwasestablishedtoacquireandholdproperties,makingany necessaryimprovementwhileheldforresale.Thefundisalsousedtopurchaselargeequipment andvehicles.Thefundwilllikelybedividedbyitsmissionintotwoseparatefunds,includingan internalservicefundforequipmentpurchaseandleaseback. OBJECTIVES: 1.Makenecessaryimprovementstolandheldforresale. 2.Acquirepropertiesatpresentmarketvaluetoaddresscomprehensiveplanneeds. 3.Acquireequipmentandleasebacktovariousdepartments. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: Thisfundclosedattheendof2013withallcashandinvestmentassetstransferredtotheCentral EquipmentFundandwithlandassetstransferredtotheCapitalProjectsFund.Revenuestreams relatedtotheestablishmentofthisFundarenowaccountedforintheCapitalProjectsFund.The cashtransferredtotheCentralEquipmentFundwillbeusedtobuyaFireTruckandothercapital assets. 170 BUDGET: CAPIITALPROJECTREVOLVING201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues244,45738,14533,606----- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous100,62298,08136,254236,725236,725--100.0% OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES345,079$136,226$69,860$236,725$236,725$-$-100.0% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies-11,82240,215------ OtherServices&Charges79415,6272,829------ CapitalOutlay(17,940)76,038361,947467,335247,032--100.0% OperatingTransfers45,000---710,000---- TOTALEXPENDITURES27,854$103,487$404,991$467,335$957,032$-$-100.0% FUNDBALANCE-JANUARY1705,474$1,022,699$1,055,438$720,307$720,307$-$ Excess(Deficiency)of RevenuesoverExpenditures317,22532,739(335,131)(230,610)(720,307)- FUNDBALANCE-DECEMBER311,022,699$1,055,438$720,307$489,697$-$-$ 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: Measurement20102011201220132014 NotApplicable BUDGETCOMMENTARY: In2014,specialassessmentscollectedonprojectswithretireddebtwillprovidefundingforBertram ChainofLakespropertyacquisitionsandpathwayandparkimprovementsthroughatransfertothe Park&PathwayDedicationFund. 172 BUDGET: CLOSEDBONDFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes2,699$8,553$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments753,076702,564844,574441,095441,095283,000-35.8% Miscellaneous4,79042,86633,2425,0005,0005,0000.0% OperatingTransfers343,201-299,339------ DebtProceeds--------- TOTALREVENUES1,103,766$753,983$1,177,155$446,095$446,095$288,000$-35.4% EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges--------- CapitalOutlay--------- DebtService10,248103,757------- OperatingTransfers-452,000575,122600,000750,000494,500-17.6% TOTALEXPENDITURES10,248$555,757$575,122$600,000$750,000$494,500$-17.6% FUNDBALANCE-JANUARY1(777,627)$315,891$514,117$1,116,150$1,116,150$812,245$ Excess(Deficiency)of RevenuesoverExpenditures1,093,518198,226602,033(153,905)(303,905)(206,500) FUNDBALANCE-DECEMBER31315,891$514,117$1,116,150$962,245$812,245$605,745$ 173 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 174 ENTERPRISEFUNDS-SUMMARY DESCRIPTION Enterprisefundsareusedtoreportanactivityforwhichafeeischargedtoexternalusersforgoodsorservices. Unlikegovernmentalfunds,enterprisefundsfocusonthedeterminationofoperatingincome,changesinnet position(orcostrecovery),financialposition,andcashflows.Enterprisefundsuseanaccrualbasisofaccounting forfinancialreportingpurposes.Amodifiedaccrualbasiswillbeusedforbudgetingpurposesinthisreport. Consequently,thebottomlineforeachenterprisefundislabeledfundbalanceratherthannetposition,which includescapitalassets,long-termdebtandothernoncurrentitems.Fundbalanceinenterprisefundsisroughly thesameasworkingcapital.Thecitycurrentlyhasfiveactiveenterprisefunds:Water,Sewage,Liquor, Cemetery,FiberOptics. BUDGETISSUES Eachenterprisefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY TOTALENTERPRISEFUNDS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- SaleofGoods4,477,6514,653,3854,854,7984,461,5004,848,5004,944,50010.8% Licenses&Permits7,8763209703,7003,7003,7000.0% IntergovernmentalRevenues8,069-------- ChargesforServices2,739,5694,248,4434,785,0124,567,1004,767,1004,667,1002.2% Fines&Forfeits--------- SpecialAssessments160,317158,543158,319150,000150,000150,0000.0% Miscellaneous368,1962,066,504524,851224,570184,570145,308-35.3% ContributedCapital143,433----86,070--- OperatingTransfers20,065-4,450,000220,000860,000350,00059.1% DebtProceeds11,767,4201,949,3271,004,6986,100,0003,000,000--100.0% TOTALREVENUES19,692,596$13,076,522$15,778,648$15,726,870$13,813,870$10,346,678$-34.2% EXPENDITURES PersonnelServices1,337,575$1,574,284$1,570,108$1,577,521$1,577,521$1,384,629$-12.2% Supplies4,670,0634,311,2123,880,2413,945,6354,322,6354,316,3359.4% OtherServices&Charges3,562,5823,860,6233,703,9452,285,7992,445,7992,414,3605.6% CapitalOutlay4,394,046128,59198,6287,304,1004,009,100802,764-89.0% DebtService1,936,6121,939,9201,048,034120,000106,300346,220188.5% OperatingTransfers274,588723,6873,707,219633,5001,063,5002,184,335244.8% TOTALEXPENDITURES16,175,466$12,538,317$14,008,175$15,866,555$13,524,855$11,448,643$-27.8% FUNDBALANCE-JANUARY12,865,368$6,382,498$6,920,703$8,691,176$8,691,176$8,980,191$ Excess(Deficiency)of RevenuesoverExpenditures3,517,130538,2051,770,473(139,685)289,015(1,101,965) FUNDBALANCE-DECEMBER316,382,498$6,920,703$8,691,176$8,551,491$8,980,191$7,878,226$ 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: Measurement20102011201220132014 Watercustomers3,9693,9683,9833,9924,023 Metersread16,00017,00017,00016,13117,000 Metersreplaced135200418418250 Newmetersinstalled24202040 Waterlocates500500500500500 Gallonspumped(MG)660650618592620 Valvesmaintained1/4city1/4city1/4city1/4city1/4city Hydrantsmaintained1/4city1/4city1/4city1/4city1/4city Timesmainsflushed22222 Mains/wellsrebuilt12110 Watertowersinspections22222 Reservoirinspections11111 Watersamplestosent250250250250250 Newservicesinspected21555 GPSwatersystem1/8city1/8city1/8city1/8city1/8city Serviceshut-offs100100100100100 176 BUDGETCOMMENTARY: TheWaterFund’smainsourceofrevenueisusercharges.In2013,watercustomeruserrateswere increasedby10%.Noincreaseisbudgetedfor2014.Toencourageconservationsandmeetthestate mandate,thecityhasestablishedusagetierswithhigherratesateachlevel.Capitaloutlaysinclude $150,000foranelectronicmonitoringsystemforwells,pumphousesandotherfacilities.Additional capitaloutlaysinclude$120,000forannualupgradestothedistributionsystem.Thepersonnel servicesbudgetincludesafullstepincreasewitha1%cost-of-livingincreaseanda5%health insurancebenefitcostincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. Operatingtransfersoutwillretiredebtserviceforwatersystemimprovementsindebtservicefunds. Otheritemsremainat2013budgetlevels. BUDGET: WATERFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits7,8763209703,7003,7003,7000.0% IntergovernmentalRevenues--------- ChargesforServices826,321919,5901,146,6041,121,8001,121,8001,121,8000.0% Fines&Forfeits--------- SpecialAssessments160,317158,543158,319150,000150,000150,0000.0% Miscellaneous116,633255,600194,67592,50092,50072,500-21.6% ContributedCapital-----25,620--- OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES1,111,147$1,334,053$1,500,568$1,368,000$1,368,000$1,373,620$0.4% EXPENDITURES PersonnelServices190,809$225,729$217,412$272,423$272,423$248,036$-9.0% Supplies84,971106,304124,203111,950111,950102,950-8.0% OtherServices&Charges343,750326,815250,151210,551215,551258,46622.8% CapitalOutlay--3,375512,900512,900270,000-47.4% DebtService OperatingTransfers-144,718207,219413,500413,500551,00033.3% TOTALEXPENDITURES619,530$803,566$802,360$1,521,324$1,526,324$1,430,452$-6.0% FUNDBALANCE-JANUARY12,888,380$3,379,997$3,910,484$4,608,692$4,608,692$4,450,368$ Excess(Deficiency)of RevenuesoverExpenditures491,617530,487698,208(153,324)(158,324)(56,832) FUNDBALANCE-DECEMBER313,379,997$3,910,484$4,608,692$4,455,368$4,450,368$4,393,536$ 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: Measurement20102011201220132014 Sewermainsmaintained1/4city1/4city1/4city1/4city1/4city Liftstations77777 Sewermainlocates300300300300300 GPSsewersystem1/8city1/8city1/8city1/8city1/8city Manholesmaintained660650600600600 Newservicehookups24202040 Sewerservicestelevised1/8city1/8city1/8city1/8city1/8city Gallons(MG)wastetreated397432408392400 178 BUDGETCOMMENTARY: TheSewageFund’smainsourceofrevenueisusercharges.In2013,sewagecustomeruserrates wereincreasedby10%.Noincreaseisbudgetedfor2014.Capitaloutlaysfor2013included treatmentplantupgradesof$2,900,000.Capitaloutlaysfor2013include$150,000forelectronic monitoringsystemsand$120,000inannualupgradestothecollectionsystem.Thepersonnel servicesbudgetincludesafullstepincreasewitha1%cost-of-livingincreaseanda5%health insurancebenefitcostincrease.Thedeclineinpersonnelservicesreflectstheshiftingofdutiesand responsibilitiesresultingfromthepublicworksdirectorvacancy.In2014operatingtransfersout werebudgetedtoretiredebtserviceforsystemimprovements.Otheritemsremainat2013budget levels. BUDGET: SEWAGEFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE Propertytaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices1,470,5821,712,6841,853,1411,800,5002,050,5002,050,50013.9% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous95,764192,338135,99981,26281,26262,000-23.7% ContributedCapital143,433----60,450--- OperatingTransfers--------- DebtProceeds1,4361,4361,4366,100,0003,000,000--100.0% TOTALREVENUES1,711,215$1,906,458$1,990,576$7,981,762$5,131,762$2,172,950$-72.8% EXPENDITURES PersonnelServices246,754$258,576$283,869$270,867$270,867$245,306$-9.4% Supplies30,51621,19421,77426,85026,85025,750-4.1% OtherServices&Charges860,824892,7841,049,425926,330931,330999,9537.9% CapitalOutlay144,868-79,0196,689,2002,989,200270,000 -96.0% DebtService121,905121,051109,981120,000106,300346,220188.5% OperatingTransfers(1,444)318,937---1,283,335--- TOTALEXPENDITURES1,403,423$1,612,542$1,544,068$8,033,247$4,324,547$3,170,564$-60.5% FUNDBALANCE-JANUARY12,140,998$2,448,790$2,742,706$3,189,214$3,189,214$3,996,429$ Excess(Deficiency)of RevenuesoverExpenditures307,792293,916446,508(51,485)807,215(997,614) FUNDBALANCE-DECEMBER312,448,790$2,742,706$3,189,214$3,137,729$3,996,429$2,998,815$ 179 SEWAGETREATMENTPLANT(WWTP)DIVISION: SewageTreatmentPlant(orWastewatertreatmentplant)activityprovidesfortheoperationofthe facilitythatcollectsandtreatsallsewagefromthecity'ssanitarysewersystem.Thesewage treatmentplantisownedbythecity,buttheoperationsarecontractedouttoaprivatecompany. The2014budgetforcontractedplantserviceis$820,975. BUDGET: SEWAGEFUND201020112012201320132014% TREATMENTPLANTActualActualActualBudgetProjectedBudgetChange PersonnelServices1,235$83$117$1,225$1,225$1,227$0.2% Supplies12,33956192502502500.0% OtherServices&Charges816,985856,537917,020871,800871,800898,6493.1% CapitalOutlay31,905--6,375,0002,900,000--100.0% DebtService OperatingTransfers--------- TOTALEXPENDITURES862,464$856,676$917,156$7,248,275$3,773,275$900,126$-87.6% SANITARYSEWEROPERATIONSDIVISION: Sanitaryseweroperationsencompasstheoperationandmaintenanceofthesanitarysewersystem, whichconsistsofthesewermainsandliftstationsthattransportwastetothesewagetreatment plant(orWWTP).Transfersouttodebtservicefundsrepresenttheexhaustionofimpactfees formerlyaccountedforintheSanitarySewerAccessFund. BUDGET: SEWAGEFUND201020112012201320132014% SEWEROPERATIONSActualActualActualBudgetProjectedBudgetChange PersonnelServices245,519$258,493$283,752$269,642$269,642$244,079$-9.5% Supplies18,17721,13821,75526,60026,60025,500-4.1% OtherServices&Charges43,83936,247132,40554,53059,530101,30485.8% CapitalOutlay112,963-79,019314,20089,200270,000-14.1% DebtService121,905121,051109,981120,000106,300346,220 OperatingTransfers(1,444)318,937---1,283,335--- TOTALEXPENDITURES540,959$755,866$626,912$784,972$551,272$2,270,438$189.2% 180 REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotal 2/1/201490,000$9,800$4.00%99,800$ 8/1/20148,0008,000 2/1/201595,0008,000 4.00%103,000 8/1/20156,1006,100 2/1/2016100,0006,100 4.00%106,100 8/1/20164,1004,100 2/1/2017100,0004,100 4.00%104,100 8/1/20172,1002,100 2/1/2018105,0002,100 4.00%107,100 Total490,000$50,400$540,400$ GOBonds,Series2007A(RevenuePortion) PayablePrincipalInterestRateTotal 12/1/2014180,000$74,198$2.00%254,198$ 6/1/201535,29935,299 12/1/2015180,00035,2992.00%215,299 6/1/201633,49933,499 12/1/2016180,00033,4992.00%213,499 6/1/201731,69931,699 12/1/2017180,00031,6992.00%211,699 6/1/201829,89929,899 12/1/2018185,00029,8992.00%214,899 6/1/201928,04928,049 12/1/2019185,00028,0492.00%213,049 6/1/202026,19926,199 12/1/2020190,00026,1992.00%216,199 6/1/202124,29924,299 12/1/2021195,00024,2992.15%219,299 6/1/202222,20322,203 12/1/2022200,00022,2032.35%222,203 6/1/202319,85319,853 12/1/2023205,00019,8532.60%224,853 6/1/202417,18817,188 12/1/2024210,00017,1882.75%227,188 6/1/202514,30014,300 12/1/2025215,00014,3003.00%229,300 6/1/202611,07511,075 12/1/2026225,00011,0753.00%236,075 6/1/20277,7007,700 12/1/2027230,0007,7003.20%237,700 6/1/20284,0204,020 12/1/2028240,0004,0203.35%244,020 Total3,000,000$684,755$3,684,755$ GOWastewaterTreatementBonds,Series2013B 181 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 2010 2011 2012 2013 2014 GrossProfit 1,174,767$1,151,171$1,214,918$1,318,276$1,051,000$ GrossProfit%ofSales 26%25%25%26%25% Salespersquarefoot $509 $529 $551 $573 $573 Winetastingticketssold 309 440 440 440 440 Beertastingticketssold 125 220 220 220 220 BUDGETCOMMENTARY: Hi-WayLiquorshascontinuedtobeaself-supportingcityenterprisefund,withprofitsdirected towardspecialprojects.Consequently,thishelpkeeppropertytaxeslower.Revenuesaregenerated bysaleofalcoholicbeveragesandmerchandiserelatedtotheliquorindustry.In2014,theLiquor Fundisslatedtoprovide$350,000totheFiberOpticsFund.Capitaloutlaysfor2014include replacementofthecheckoutarea.In2012,theLiquorFundtransferredoutmoneytoreduce interfundloanbalancesinotherfunds. 182 BUDGET: LIQUORFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE SaleofGoods4,477,651$4,653,385$4,854,798$4,461,500$4,848,500$4,944,500$10.8% Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices--------- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous99,139203,048(9,161)50,00010,00010,000-80.0% ContributedCapital--------- OperatingTransfers20,065-------- DebtProceeds--------- TOTALREVENUES4,596,855$4,856,433$4,845,637$4,511,500$4,858,500$4,954,500$9.8% EXPENDITURES PersonnelServices408,092$416,160$422,579$456,489$456,489$471,314$3.2% Supplies3,286,8673,486,6523,627,1383,512,9003,889,9003,893,70010.8% OtherServices&Charges200,468193,693200,897215,017215,017233,4418.6% CapitalOutlay33,76837,78216,23445,000-50,00011.1% DebtService OperatingTransfers266,000250,0003,500,000220,000650,000350,00059.1% TOTALEXPENDITURES4,195,195$4,384,287$7,766,848$4,449,406$5,211,406$4,998,455$12.3% FUNDBALANCE-JANUARY12,697,070$3,098,730$3,570,876$649,665$649,665$296,759$ Excess(Deficiency)of RevenuesoverExpenditures401,660472,146(2,921,211)62,094(352,906)(43,955)$ FUNDBALANCE-DECEMBER313,098,730$3,570,876$649,665$711,759$296,759$252,804$ 183 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 2010 2011 2012 2013 2014 Plotoccupied 3,449 3,470 Plotsreserved 765 765 Plotsavailableforsale 1,066 1,056 Numberofplotssold 4 17 14 9 10 Numberofinternments 18 21 23 15 15 Numberofmarkersstaked 13 15 11 13 15 BUDGETCOMMENTARY: Therearenosubstantialchangestoeitherrevenuesorexpendituresfor2014. 184 BUDGET: RIVERSIDECEMETERY201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices8,62022,39019,81024,80024,80024,8000.0% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous9861,8219638088088080.0% ContributedCapital--------- OperatingTransfers--------- DebtProceeds--------- TOTALREVENUES9,606$24,211$20,773$25,608$25,608$25,608$0.0% EXPENDITURES PersonnelServices3,090$6,845$6,602$4,068$4,068$4,073$0.1% Supplies202232457757757750.0% OtherServices&Charges19,93118,54515,84921,23521,23524,32414.5% CapitalOutlay--------- OperatingTransfers--------- TOTALEXPENDITURES23,223$25,413$22,696$26,078$26,078$29,172$11.9% FUNDBALANCE-JANUARY136,095$22,478$21,276$19,353$19,353$18,883$ Excess(Deficiency)of RevenuesoverExpenditures(13,617)(1,202)(1,923)(470)(470)(3,564) FUNDBALANCE-DECEMBER3122,478$21,276$19,353$18,883$18,883$15,319$ 185 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: Measurement20102011201220132014 Internetsubscibers1,0111,4231,2571,1891,150 Phonesubscribers5621,0021,109976900 CableTVsubscribers7581,058997860780 BUDGETCOMMENTARY: TheFiberOpticsFundbeganoperationsin2009andconstructionofthefiberopticnetworkwas completedin2010.Revenuescomefromchargestosubscribersandexpendituresareincurredasa resultofoperatingthesystemandnewcustomerserviceinstallations.Thecityhasdefaultedonthe revenuebondsusedtofinanceconstructionofthesystem.Consequently,nofuturedebtserviceis planned.In2012,thecitytransferred$4,450,000tothefund,reducinganinterfundloanbalance.In 2013,theothercityfundstransferred$860,000intotheFiberOpticsFund.In2014,theLiquorFund willprovide$350,000towardsFiberOpticsFundoperations. 186 BUDGET: FIBEROPTICS201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues8,069-------- ChargesforServices434,0461,593,7791,765,4571,620,0001,570,0001,470,000-9.3% Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous55,6741,413,697202,375------ ContributedCapital--------- OperatingTransfers--4,450,000220,000860,000350,00059.1% DebtProceeds11,765,9841,947,8911,003,262------ TOTALREVENUES12,263,773$4,955,367$7,421,094$1,840,000$2,430,000$1,820,000$-1.1% EXPENDITURES PersonnelServices488,830$666,974$639,646$573,674$573,674$415,900$-27.5% Supplies1,267,507697,039106,881293,160293,160293,1600.0% OtherServices&Charges2,137,6092,428,7862,187,623912,6661,062,666898,176-1.6% CapitalOutlay4,215,41090,809-57,000507,000212,764273.3% DebtService1,814,7071,818,869938,053------ OperatingTransfers10,03210,032------- TOTALEXPENDITURES9,934,095$5,712,509$3,872,203$1,836,500$2,436,500$1,820,000$-0.9% FUNDBALANCE-JANUARY1(4,897,175)$(2,567,497)$(3,324,639)$224,252$224,252$217,752$ Excess(Deficiency)of RevenuesoverExpenditures2,329,678(757,142)3,548,8913,500(6,500)- FUNDBALANCE-DECEMBER31(2,567,497)$(3,324,639)$224,252$227,752$217,752$217,752$ 187 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 188 INTERNALSERVICEFUNDS-SUMMARY DESCRIPTION Internalservicefundsareproprietaryfundtypesthatmaybeusedtoreportanyactivitythatprovidesgoodsor servicetootherfunds,departments,oragenciesoftheprimarygovernmentanditscomponentunits,orto othergovernments,onacost-reimbursementbasis.Internalservicefundsuseanaccrualbasisofaccountingfor financialreportingpurposes.Amodifiedaccrualbasiswillbeusedforbudgetingpurposesinthisreport. Consequently,thebottomlineforeachenterprisefundislabeledfundbalanceratherthannetposition,which includescapitalassets,long-termdebtandothernoncurrentitems.Fundbalanceinaninternalservicefundis roughlythesameasworkingcapital.Thecitycurrentlyhastwoactiveinternalservicefunds:ITServices,Central Equipment.Thesetwofundswereinitiatedin2013and2014willbethefirstfullyearofoperationsforboth. BUDGETISSUES Eachinternalservicefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY TOTALINTERNALSERVICE201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices----212,029376,928--- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous----(136)5,210--- OperatingTransfers----500,000---- DebtProceeds----500,000---- TOTALREVENUES-$-$-$-$1,211,893$382,138$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies----7,47326,950--- OtherServices&Charges----113,415215,761--- CapitalOutlay---177,013694,197--- DebtService----58,78866,120--- OperatingTransfers--------- TOTALEXPENDITURES-$-$-$-$356,689$1,003,028$--- -$-$-$-$-$855,204$ Excess(Deficiency)of RevenuesoverExpenditures----855,204(620,890) FUNDBALANCE-DECEMBER31-$-$-$-$855,204$234,314$ 189 ITSERVICESFUND DEPARTMENT:Finance SUPERVISOR:FinanceDirector FUND#:702 ACTIVITY#:XXXXX ACTIVITYSCOPE: TheIT(InformationTechnology)ServicesFundisaself-sustaininginternalservicefund.Thefinance departmentmanagesthenetworkofserversandperipheralequipmenttoprovidecontinuityand accountabilityforITrelatedservices.Thefund’srevenuesarederivedfromservicechargestoeach budgetunitreceivingITservices.Servicechargesareadjustedannuallytocoverallcurrentcostsplus aportionofcapitaloutlays. OBJECTIVES: 1.Centralizeprovisionofinformationtechnologyservicesintoonefund. 2.ImprovemanagementofITresources. 3.Distributecapitalcostsovermultipleannualreportingperiods. 4.Providefinancialmanagementstabilitytoeachbudgetunit. ISSUES: 1.Appropriatecostsdistribution. 2.Coordinationofservicedeliverytomultipledepartmentsandbudgetunits. 3.Demandsonstaff. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Outcome/Effectiveness: Networkuptime Numberofclosedrequests Efficiency: Operationhoursvs.reported hoursassignedtorequests Opentoclosedrequestsratio 99%99%99% WorkLoad: Numberofhelpdeskrequests 326350350 Numberofclients/users 606363 NumberofPC,servers,and networkdevices 959696 190 BUDGETCOMMENTARY: TheITServicesFund’smainsourceofrevenueisinternalusercharges.Thefundwasinitiatedinthe middleof2013. BUDGET: ITSERVICES201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices----125,000252,708--- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous----(136)100--- OperatingTransfers----30,000---- DebtProceeds--------- TOTALREVENUES-$-$-$-$154,864$252,808$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies----7,47326,950--- OtherServices&Charges----108,415215,761--- CapitalOutlay----17,01310,000--- DebtService--------- OperatingTransfers--------- TOTALEXPENDITURES-$-$-$-$132,901$252,711$--- FUNDBALANCE-JANUARY1-$-$-$-$-$21,963$ Excess(Deficiency)of RevenuesoverExpenditures----21,96397 FUNDBALANCE-DECEMBER31-$-$-$-$21,963$22,060$ 191 CENTRALEQUIPMENTFUND DEPARTMENT:Finance SUPERVISOR:FinanceDirector FUND#:703 ACTIVITY#:XXXXX ACTIVITYSCOPE: TheCentralEquipmentFundisaself-sustaininginternalservicefund.Thefinancedepartment participatesalongwithvariousdepartmentdirectorsanddivisionleadersintheacquisitionofcapital assets.Theacquiredcapitalassetischargedbackagainstthebenefittingbudgetunitthroughrental chargesoverapredeterminednumberofyears.Therentalchargereflectsdepreciationplus inflation.Servicechargesforeachassetarefixedforthedurationofrentalpayments. OBJECTIVES: 1.Buildmechanismforreplacingcapitalassetsintoannualbudgets. 2.Improvemanagementofcapitalassets. 3.Distributecapitalcostsovermultipleannualreportingperiods. 4.Providefinancialmanagementstabilitytoeachbudgetunit. ISSUES: 1.Appropriatecostdistributionovermultipleaccountingperiods. 2.Efficientcoordinationofassetreplacementactivities. 3.Adequatestart-upresources. 4.Demandsonstaff. MEASURABLEWORKLOADDATA: Measurement20102011201220132014 Outcome/Effectiveness: Annualcostrecovery 15,800$124,220$ Totalcostsofassetsacquired 95,000$779,197$ Efficiency: Costrecoveryas%of acquiredassets.17%16% WorkLoad: Numberofassetsacquired 37 192 BUDGETCOMMENTARY: TheCentralEquipmentFund’smainsourceofrevenueisinternalrentalcharges.Thefundwas initiatedtowardthebeginningof2013withthesaleof$500,000incertificatesofindebtedness.In 2013,theoperatingtransferinresultedfromtheclosingtheCapitalOutlayRevolvingFund.The2014 budgetedequipmentacquisitions:Firetruck-$335,000;buildinginspectionsvehicle-$22,500;public worksvehiclesandequipment-$226,697;recreationalequipment-$35,000;laserfiche-$65,000. BUDGET: CENTRALEQUIPMENTFUND201020112012201320132014% REVENUESACTUALACTUALACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes-$-$-$-$-$-$--- Licenses&Permits--------- IntergovernmentalRevenues--------- ChargesforServices----87,029124,220--- Fines&Forfeits--------- SpecialAssessments--------- Miscellaneous-----5,110--- OperatingTransfers----470,000---- DebtProceeds----500,000---- TOTALREVENUES-$-$-$-$1,057,029$129,330$--- EXPENDITURES PersonnelServices-$-$-$-$-$-$--- Supplies--------- OtherServices&Charges----5,000---- CapitalOutlay---500,000160,000684,19736.8% DebtService----58,78866,120--- OperatingTransfers--------- TOTALEXPENDITURES-$-$-$500,000$223,788$750,317$50.1% FUNDBALANCE-JANUARY1-$-$-$-$-$833,241$ Excess(Deficiency)of RevenuesoverExpenditures---(500,000)833,241(620,987) FUNDBALANCE-DECEMBER31-$-$-$(500,000)$833,241$212,254$ REMAININGDEBTSERVICE: PayablePrincipalInterestRateTotal 12/1/201460,000$6,120$0.60%66,120$ 12/1/201560,0005,7600.85%65,760 12/1/201660,0005,2501.10%65,250 12/1/201765,0004,5901.35%69,590 12/1/201865,0003,7131.60%68,713 12/1/201965,0002,6731.85%67,673 12/1/202070,0001,4702.10%71,470 Total445,000$29,575$474,575$ GOCertificatesofIndebtedness,Series2013A 193 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 194 CAPITALIMPROVEMENTPROGRAM INTRODUCTION Thecapitalimprovementspresentedinthissectioncomprisethe2014-2018CapitalImprovements 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 195 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. 196 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)-Projectsthatbenefitthecommunitybutmaybedelayed withoutdetrimentaleffectstobasicservices. _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: 197 ·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. 198 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. 199 HOWISTHECAPITALIMPROVEMENTPROGRAMFINANCED? Inanalyzingthefinancialviabilityofthecapitalimprovementsinthe2014-2018CIPthecityhasthree basicchoicesformethodsoffinancing:pay-as-you-go,jointpoweragreementdevelopment authoritycapitalleasing,anddebtfinancing.Thefollowingsourcesproviderevenueforthethree financingmethods. GeneralFundrevenues,suchaspropertytaxes,localgovernmentaid,andservicechargesarecurrent revenuesusedtofinancerelativelysmallcapitaloutlays. 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$1.6millionofitsstate-aidstreetfundstowardtheTH25/CSAH75intersection improvementsandFallonAvenueoverpass.Othersourcescomefromgrants,donations,reserves, andothergovernmentalunitsthatshareboundaries. 200 ItemslistedonthefollowingpagesaretypicallylabeledwithprefixesVEQ-forvehiclesand equipment,MNC-(majornon-capital)repairs&maintenance,STE-forsmalltoolsandequipment.All otherlabelprefixesrepresentcapitalimprovements.Thebelowgraphandtableprovidesa breakdownofexpenditureswithintheCIP: $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 20142015201620172018 Millions Expenditures-IntegratedCIPforFY2014-2018 CapitalImprovements Garage(CapitalEquipment)FirstAidKit(RepairsandMaintenance)ToolBox(SmallToolsandEquipment) ExpenditureCategory20142015201620172018 CapitalImprovements3,019,000$8,867,900$9,179,100$1,910,000$8,835,000$ Garage (CapitalEquipment)759,000962,100869,5001,187,500475,000 FirstAidKit (RepairsandMaintenance)272,165325,000235,000215,000250,000 ToolBox (SmallToolsandEquipment)55,60071,90079,30075,80076,000 4,105,765$10,226,900$10,362,900$3,388,300$9,636,000$ 201 CapitalImprovementPlan CityofMonticello,Minnesota FUNDINGSOURCESUMMARY 2014 thru 2018 TotalSource20142015201620172018 CapitalEquipmentFund 3,662,100399,000821,100809,5001,157,500475,000 CapitalProjectFund 13,600,000770,0001,755,0004,365,0001,060,0005,650,000 CemeteryFund 10,0005,0005,000 CommunityCenterFund 1,818,00095,000218,0001,200,000164,000141,000 DebtProceeds 6,000,0001,200,0004,320,000480,000 DMVFund 20,00020,000 FederalAid 1,200,0001,110,90089,100 GeneralFund 1,097,165198,165225,500226,500227,000220,000 ITServicesFund 167,60045,60029,40032,80029,80030,000 MNDOTCIMS 506,000492,00014,000 MunicipalLiquorFund 1,650,00050,00075,00025,0001,500,000 Parks&PathwaysFund 1,125,500494,500466,00055,00055,00055,000 PrivateDevelopment 63,50063,500 SewageFund 2,945,000300,000195,0002,150,000150,000150,000 StateAid 410,00020,00040,000350,000 StormwaterAccessFund 1,450,00040,00040,00040,000140,0001,190,000 StreetConstructionFund 200,00050,00050,00050,00050,000 StreetLightingFund 525,00075,000100,000200,00075,00075,000 WaterFund 1,180,000300,000174,000276,000280,000150,000 WrightCounty 90,00090,000 4,105,76510,226,90010,362,9003,388,3009,636,000 37,719,865GRANDTOTAL ProducedUsingthePlan-ItCapitalPlanningSoftware 202 CapitalImprovementPlan CityofMonticello,Minnesota PROJECTS&FUNDINGSOURCESBYDEPARTMENT 20142018thru Total20142015201620172018DepartmentProject#Priority CommunityCenter 1,818,00095,000218,0001,200,000164,000141,000CommunityCenterFund 1,818,00095,000218,0001,200,000164,000141,000CommunityCenterTotal MCC-13-00135,00025,00010,000MovableWalls3 MCC-13-0021,000,0001,000,000SplashPark3 MCC-13-005200,000100,000100,000NewRoofs2 MCC-13-00665,00065,000ParkingLotImprovements2 MNC-13-00645,00015,00015,00015,000Carpet3 MNC-13-00710,00010,000WoodFloor-MississippiRoom3 MNC-13-00830,00030,000ReglazeWaterSlide2 MNC-13-00950,00050,000GymFloorReplacement2 MNC-13-01025,00015,00010,000VanityandPartitionReplacement3 MNC-13-01350,00050,000DiamondBritePoolResurface2 MNC-13-01430,00010,00020,000MechanicalImprovements2 STE-13-013126,00030,00030,00030,00036,000RecreationEquipment3 STE-13-0143,0003,000TableCovers3 STE-13-01515,0005,0005,0005,000Tables3 STE-13-0167,0003,0004,000PatioFurniture3 VEQ-13-04512,00012,000Dishwasher2 VEQ-13-05810,00010,000DiamondBrite/Spas3 VEQ-13-05940,00040,000UpgradeIndoorPlayStructure3 VEQ-13-06065,00035,00030,000PoolToy3 1,818,00095,000218,0001,200,000164,000141,000CommunityCenterTotal DMV-DeputyRegistrar 20,00020,000DMVFund 20,00020,000DMV-DeputyRegistrarTotal VEQ-13-04720,00020,000DMVVehicle2 20,00020,000DMV-DeputyRegistrarTotal Fire&Rescue FRD-13-001250,000250,000FireStationAddition2 ProducedUsingthePlan-ItCapitalPlanningSoftware 203 Total20142015201620172018DepartmentProject#Priority 1,335,000335,0001,000,000CapitalEquipmentFund 3,250,000250,0003,000,000CapitalProjectFund 25,0005,0005,0005,0005,0005,000GeneralFund 4,610,000340,000255,0005,0001,005,0003,005,000Fire&RescueTotal FRD-13-0023,000,0003,000,000NewFireStation2 STE-13-00625,0005,0005,0005,0005,0005,000SCBAPacks2 VEQ-13-0061,000,0001,000,000FireLadderTruck2 VEQ-13-007335,000335,000FirePumperTruck2 4,610,000340,000255,0005,0001,005,0003,005,000Fire&RescueTotal ITServices 167,60045,60029,40032,80029,80030,000ITServicesFund 167,60045,60029,40032,80029,80030,000ITServicesTotal STE-13-00169,60012,00015,60010,80015,60015,600PersonalComputers2 STE-13-0024,0004,000LedgerSizeColorScanner2 STE-13-0036,0002,0004,000Multi-serverComponentUpgrade2 STE-13-0048,0008,000SecurityCameraSystem2 STE-13-00515,0003,0003,0003,0003,0003,000Laptops2 STE-13-00749,00017,0008,0008,0008,0008,000GISHardwareandSoftware2 STE-13-00816,0003,6002,8003,0003,2003,400PavementManagementSoftware2 167,60045,60029,40032,80029,80030,000ITServicesTotal MunicipalLiquor 1,650,00050,00075,00025,0001,500,000MunicipalLiquorFund 1,650,00050,00075,00025,0001,500,000MunicipalLiquorTotal LIQ-13-00150,00050,000CountersandCheckout2 LIQ-13-00275,00075,000ParkingLotImprovements2 LIQ-13-0031,500,0001,500,000LiquorStore-#23 VEQ-13-04625,00025,000LiquorStoreCoolers2 1,650,00050,00075,00025,0001,500,000MunicipalLiquorTotal PublicWorks PWK-13-002200,000200,000PWFacilityLandAcquisition3 STE-13-01112,0005,0007,000Generator2 VEQ-13-01012,50012,500SpeedTrailer2 VEQ-13-01365,00065,000One-TonTruck2 VEQ-13-01459,00027,00032,000Truck-Pickup4X42 ProducedUsingthePlan-ItCapitalPlanningSoftware 204 Total20142015201620172018DepartmentProject#Priority 1,871,60064,000583,100672,00077,500475,000CapitalEquipmentFund 200,000200,000CapitalProjectFund 12,0005,0007,000GeneralFund 2,083,60064,000783,100677,00084,500475,000PublicWorksTotal VEQ-13-015130,000130,000BucketTruck2 VEQ-13-016120,000120,000BlacktopPaver2 VEQ-13-01722,00022,000BlacktopPlainer2 VEQ-13-01822,00022,000Router2 VEQ-13-01920,00020,000ConcreteSaw2 VEQ-13-02195,00095,000Backhoe2 VEQ-13-022220,000220,000PlowTruck2 VEQ-13-02365,00065,000One-TonTruckandPlow2 VEQ-13-024260,000260,000HookDumpTruck2 VEQ-13-025141,100141,100SnowGoSnowBlower2 VEQ-13-02665,00065,000SkidSteereLoader2 VEQ-13-02730,00030,000SignLabSystem2 VEQ-13-02820,00020,000PaverTrailer2 VEQ-13-02920,00020,000AirCompressor2 VEQ-13-03030,00030,000BlacktopRoller2 VEQ-14-001220,000220,000WheelLoader-3yd.3 VEQ-14-002175,000175,000StreetSweeper3 VEQ-14-00380,00080,000BlacktopHotBox3 2,083,60064,000783,100677,00084,500475,000PublicWorksTotal Recreation&Culture MNC-13-00410,0005,0005,000CemeteryStoneRestoration3 PAR-13-00160,00060,000HuntersCrossingParkDevelopment3 PAR-13-00260,00060,000FeatherstoneParkDevelopment3 PAR-13-00310,00010,000SunsetPondsShelter3 PAR-13-00480,00040,00020,00020,000PioneerPark-BandShell3 PAR-13-00575,00065,00010,000PlaygroundEquipment2 PAR-13-00617,50017,500MontiHillParkDevelopment2 PAR-13-007275,00050,00075,00050,00050,00050,000PathwayImprovemnents2 PAR-13-008743,000357,000386,000BertramLakesLandAcquisition2 PAR-13-01025,0005,0005,0005,0005,0005,000BCOLImprovements3 PAR-13-01110,0006,0004,000DugoutRoofs-XcelBallFields3 PAR-13-0122,000,0002,000,000BCOLBallFields3 PAR-13-013155,000155,000EllisonParkLogShelter3 PAR-13-01425,00025,000CSAH75PathwayLighting3 STE-13-0123,0001,5001,500SodCutter2 VEQ-13-03120,00020,000ParkMowers2 VEQ-13-032167,00022,00065,00080,000Trucks2 ProducedUsingthePlan-ItCapitalPlanningSoftware 205 Total20142015201620172018DepartmentProject#Priority 7,775,000770,0001,125,0004,190,0001,040,000650,000CapitalProjectFund 6,000,0001,200,0004,320,000480,000DebtProceeds 1,200,0001,110,90089,100FederalAid 1,047,165187,165215,000215,000215,000215,000GeneralFund 506,000492,00014,000MNDOTCIMS 63,50063,500PrivateDevelopment 410,00020,00040,000350,000StateAid 500,00075,00075,000200,00075,00075,000StreetLightingFund 90,00090,000WrightCounty 17,591,6652,315,6657,467,9005,538,1001,330,000940,000StreetsTotal STR-13-01663,50063,500SpiritHillsTownhouseWearCourse2 STR-14-001125,000125,000TH25/85thStreetSignal2 STR-14-004150,00050,00050,00050,000SignalModification-FYA2 STR-14-00550,00050,000OakwoodSidewalk3 17,591,6652,315,6657,467,9005,538,1001,330,000940,000StreetsTotal Utility-Sewage 2,945,000300,000195,0002,150,000150,000150,000SewageFund 2,945,000300,000195,0002,150,000150,000150,000Utility-SewageTotal UTS-13-0011,250,000150,000150,000650,000150,000150,000AnnnualSewageTrunkImprovements2 UTS-13-0031,500,0001,500,000WWTPInfluentWetwellandGritChamber2 VEQ-13-004150,000150,000SCADASystem-Sewage2 VEQ-14-00545,00045,000NetworkOperationsPC2 2,945,000300,000195,0002,150,000150,000150,000Utility-SewageTotal Utility-Water 1,180,000300,000174,000276,000280,000150,000WaterFund 1,180,000300,000174,000276,000280,000150,000Utility-WaterTotal UTW-13-001750,000150,000150,000150,000150,000150,000AnnualWaterSystemImprovements3 UTW-13-004126,000126,000Watermain-90thStreettoChelsea2 UTW-13-005130,000130,000BoosterStationUpgrade2 VEQ-13-00224,00024,000Truck-RegularCab4X4Replacement2 VEQ-13-003150,000150,000SCADASystem-Water2 1,180,000300,000174,000276,000280,000150,000Utility-WaterTotal 37,719,8654,105,76510,226,90010,362,9003,388,3009,636,000GrandTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 206 Total20142015201620172018DepartmentProject#Priority 7,775,000770,0001,125,0004,190,0001,040,000650,000CapitalProjectFund 6,000,0001,200,0004,320,000480,000DebtProceeds 1,200,0001,110,90089,100FederalAid 1,047,165187,165215,000215,000215,000215,000GeneralFund 506,000492,00014,000MNDOTCIMS 63,50063,500PrivateDevelopment 410,00020,00040,000350,000StateAid 500,00075,00075,000200,00075,00075,000StreetLightingFund 90,00090,000WrightCounty 17,591,6652,315,6657,467,9005,538,1001,330,000940,000StreetsTotal STR-13-01663,50063,500SpiritHillsTownhouseWearCourse2 STR-14-001125,000125,000TH25/85thStreetSignal2 STR-14-004150,00050,00050,00050,000SignalModification-FYA2 STR-14-00550,00050,000OakwoodSidewalk3 17,591,6652,315,6657,467,9005,538,1001,330,000940,000StreetsTotal Utility-Sewage 2,945,000300,000195,0002,150,000150,000150,000SewageFund 2,945,000300,000195,0002,150,000150,000150,000Utility-SewageTotal UTS-13-0011,250,000150,000150,000650,000150,000150,000AnnnualSewageTrunkImprovements2 UTS-13-0031,500,0001,500,000WWTPInfluentWetwellandGritChamber2 VEQ-13-004150,000150,000SCADASystem-Sewage2 VEQ-14-00545,00045,000NetworkOperationsPC2 2,945,000300,000195,0002,150,000150,000150,000Utility-SewageTotal Utility-Water 1,180,000300,000174,000276,000280,000150,000WaterFund 1,180,000300,000174,000276,000280,000150,000Utility-WaterTotal UTW-13-001750,000150,000150,000150,000150,000150,000AnnualWaterSystemImprovements3 UTW-13-004126,000126,000Watermain-90thStreettoChelsea2 UTW-13-005130,000130,000BoosterStationUpgrade2 VEQ-13-00224,00024,000Truck-RegularCab4X4Replacement2 VEQ-13-003150,000150,000SCADASystem-Water2 1,180,000300,000174,000276,000280,000150,000Utility-WaterTotal 37,719,8654,105,76510,226,90010,362,9003,388,3009,636,000GrandTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 207 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 208 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] 209 TermsDefined 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 Payable2013 StateTaxPayable 2013 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) 210 TRUTH-IN-TAXATION TNTSummaryChartforTaxesPayable2014 Date Action OnorBefore Sept.16 Atonemeeting,thecitycounciladoptstheproposedpropertytaxlevyand announcesthetimeandplaceofafuturecitycouncilmeetingatwhichthe budgetandlevywillbediscussedandpublicinputallowed,priortofinal budgetandlevydetermination.Thispublicinputmeetingmustoccurafter Nov.24andmuststartatorafter6p.m.Thetimeandplaceofthepublic inputmeetingmustbeincludedintheminutesbutnewspaperpublicationof theminutesisnotrequired. Onorbefore Sept.16 Citiesmustprovidethecountyauditorwiththefollowinginformation: Thetimeandplaceofthemeetingatwhichthebudgetandlevywillbe discussedandpublicinputallowed.(Again,meetingmustoccurafterNov.24 andmustnotstartbefore6p.m.) Aphonenumberthatcitytaxpayersmaycalliftheyhavequestions relatedtotheauditor’spropertytaxnotice;thisdoesnotrequirelistinga privatephonenumber. Anaddresswherecommentswillbereceivedbymail;thisdoesnot requirelistingaprivateaddress. Nov.11to Nov.23 Countyauditorpreparesandsendsparcelsspecificnotices. Nov.25to Dec.30 Citycouncilsholdmeetingtodiscussthebudgetandpropertytaxlevyand, beforeafinaldetermination,allowspublicinput. Onorbefore Dec.30 Citiesmustcertifyfinalpropertytaxlevytothecountyauditor. 211 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. 212 (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; 213 (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 214 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. 215 (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 216 273.11,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. 217 UTILITYRATES Convertedfromcftogal 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 FinalBillProcessingFee: $20.00 1cf=7.48gallons Ratesfor2014UtilityBills IncreasingBlock 218 BONDRATINGSCALES Moody’scityofMonticelloratings:G.O.Debt–A2;LeaseRevenueA3 Moody's S&P Fitch Long- term Short- term Long- term Short- term Long- term Short- term Aaa P-1 AAA A-1+ AAA F1+ Prime Aa1 AA+AA+ HighgradeAa2AAAA Aa3 AA-AA- A1 A+A-1 A+F1 UppermediumgradeA2AA A3 P-2 A-A-2 A-F2Baa1BBB+BBB+ LowermediumgradeBaa2P-3 BBB A-3 BBB F3Baa3BBB-BBB- Ba1 Notprime BB+ B BB+ B Non-investmentgrade speculativeBa2BBBB Ba3 BB-BB- B1 B+B+ HighlyspeculativeB2BB B3 B-B- Caa1 CCC+ C CCC C Substantialrisks Caa2 CCC Extremelyspeculative Caa3 CCC-Defaultimminentwith little prospectforrecoveryCaCC C C D / DDD /Indefault/DD /D 219 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 220 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. 221 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. 222 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 223 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. 224 INFRASTRUCTURE:Assetswhichareimmovableandofvalueonlytothegovernmentalunit(i.e. roads,gutters,sewerlines). INTERFUNDTRANSFERS:Amountstransferredfromonefundtoanother. INTERGOVERNMENTALREVENUES:Revenuesfromothergovernmentsintheformofgrants, entitlement,orsharedrevenues. INTERNALSERVICEFUNDS:Proprietaryfundtypethatmaybeusedtoreportanyactivitythat providesgoodsorservicestootherfunds,departments,oragenciesoftheprimarygovernmentand itscomponentunits,ortoothergovernments,onacost-reimbursementbasis. 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. 225 MISCELLANEOUS:Revenuesorexpendituresnotclassifiedinanyotherrevenueorexpenditure category. MODIFIEDACCRUALBASIS:Thebasisofaccountingunderwhichexpendituresotherthanaccrued interestongenerallong-termdebtarerecordedatthetimeliabilitiesareincurredandrevenuesare 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. 226 PUBLICSAFETY:Toaccountforexpendituresrelatedtotheprotectionofpersonsandproperty. PUBLICWORKS:ToaccountforexpendituresforthemaintenanceofCitypropertyand infrastructure. 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:Datatodeterminehoweffective/efficientaprogramisinachievingitsobjective. SPECIALASSESSMENT:Acompulsorylevymadebyalocalgovernmentagainstcertainproperties todefraypartorallofthecostofaspecificimprovementorservicewhichispresumedtobeof generalbenefittothepublicandofspecialbenefittosuchproperties. SPECIALREVENUEFUND:Toaccountforrevenuederivedfromspecificrevenuesourcesthatare legallyrestrictedforspecificpurposes. 227 SY:Abbreviationforsquareyard,whichishowsealcoatingandstreetoverlayprojectsare measured. 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. 228 UNRESERVEDFUNDBALANCE:Theportionofafund’sbalancethatisnotrestrictedforaspecific purposeandisavailableforgeneralappropriation. 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 229 ThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblankThispageintentionallyleftblank 230