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2015 BudgetENTERPRISE FUNDS ForFiscalYear2013 Adopted Budget ForFiscalYear2015 CityofMonticello,Minnesota 505WalnutStreet,Suite1 Monticello,MN55362 Phone:(763)295-2711 Fax:(763)295-4404 www.ci.monticello.mn.us Table of Contents Table of Contents Directory of Officials Distinguished Budget Presentation Award Budget Message Community, Demographic and Statistical Information Map Core Values Vision, Mission and Goals Planning Process Financial Policies Budget Development and Administration Revenue Collection Expenditures and Payments Debt Administration Reserves and Fund Balances Financial Reporting and Accounting Cash Management and Investment Financial Structure Matrix of Funds and Budget Units Operating Fund Crosswalk The Budget Process Organization Chart All Funds Summary By Fund Type All Funds Summary By Year Changes in Fund Balance/Working Capital Fund Balance History Tax Capacity History Revenue Sources By Fund Long Range Financial Plans Staffing Summary Capital Investment and Operating Budgets Legal Debt Limit and Bond Ratings Bond Rating Scales Debt Service Levy History G.O. Debt Service G.O. Debt Levels Interfund Transfers Long-Term Fiscal Objectives Revenue Trends & Analysis Appropriations By Fund Type 4 5 6 19 22 23 24 25 30 30 32 32 34 35 36 37 41 44 45 46 50 51 52 53 54 55 56 57 61 62 64 65 66 67 68 69 70 73 82 1 General Fund - Summary Mayor and City Council City Administration Elections Finance Audit Assessing Legal Human Resources Planning, Zoning and Community Development Information Technology (IT) Services City Hall Prairie Center Building Law Enforcement Fire & Rescue Fire Relief Building Inspections Civil Defense Animal Control National Guard Public Works - Administration Public Works - Engineering Public Works - Inspections Public Works - Streets & Alleys Public Works - Ice & Snow Removal Public Works - Shop & Garage Public Works - Stormwater Public Works - Parking Lots Public Works - Street Lighting Public Works - Refuse Collection Community Celebrations Senior Center Transit Park Operations Park Ballfields Shade Tree Library Insurance Special Revenue Funds - Summary Economic Development Fund Cemetery Fund Minnesota Investment Fund Community Center Fund Debt Service Funds - Summary 84 87 88 90 91 93 94 95 96 98 100 102 104 105 107 109 110 112 113 115 116 118 120 122 124 125 127 129 130 131 132 133 135 136 138 139 141 142 144 145 147 149 151 154 2 2007A G.O. Improvement Bond Fund 2008A G.O. Revenue Refunding Bond Fund 2008B G.O. Sewer Revenue Refunding Bond Fund 2010A G.O. Improvement Bond Fund 2011A G.O. Refunding Bond Fund 2014A G.O. Judgment Bond Fund Capital Project Funds - Summary Capital Project Fund Closed Bond Fund Park & Pathway Dedication Fund Stormwater Access Fund Street Lighting Improvement Fund Street Reconstruction Fund Closed Capital Project Funds Enterprise Funds - Summary Water Fund Sewage Fund Liquor Fund Deputy Registrar Fund Fiber Optics Fund Internal Service Funds - Summary IT Services Fund Central Equipment Fund Capital Improvement Program Capital Improvement Program Introduction Funding Source Summary Projects & Funding Sources By Department Appendix Property Tax Basics Truth-In-Taxation Minnesota Statutes Utility Rates Useful Terms (Glossary) 155 157 159 161 163 165 168 169 171 173 175 177 179 181 182 183 185 189 191 193 196 197 199 202 202 210 211 217 217 219 220 226 227 3 DIRECTORYOFPUBLICOFFICIALS MAYOR&CITYCOUNCIL Position NameTermExpires Mayor........................................................................ClintHerbst12/31/2014 Council.....................................................................GlenPosusta12/31/2016 Council.....................................................................TomPerrault12/31/2016 Council.....................................................................BrianStumpf12/31/2014 Council......................................................................LloydHilgart12/31/2014 CITYSTAFF CityAdministrator.......................................................JeffO’Neill FinanceDirector.....................................................WayneOberg PublicWorksDirector............................................WayneOberg CommunityDevelopmentDirector.................AngelaSchumann CommunityCenterDirector.......................................KittyBaltos EconomicDevelopmentDirector(Interim).................JeffO’Neill DeputyCityClerk...................................................CathyShuman HumanResourceManager........................................TracyErgen ChiefBuildingOfficial....................................RonHackenmueller CityEngineer.....................................................................Vacant FireChief....................................................................SteveJoerg DeputyRegistrarManager.................................CarolynGranger LiquorStoreManager........................................RandallJohnsen StreetSuperintendent..............................................TomMoores ParksSuperintendent................................................TomPawelk Water&SewageSuperintendent...........................MattTheisen JOINTCITY/COUNTY/OUTSIDESTAFF WrightCountySheriff................................................JoeHagerty WSBEngineeringConsultant.................................ShibaniBisson VeoliaEnvironmentalServices.................................ChuckKeyes 4 INXYNSLZNXMJIGZILJYUWJXJSYFYNTSF\FWI XliKszivrqirxJmrergiSjjmgivwEwwsgmexmsrsjxliYrmxihWxexiwerhGerehe+KJSE,tviwirxiher e{evhsjHmwxmrkymwlihFyhkixTviwirxexmsrxsxliGmx}sjQsrxmgippsjsvmxwerryepfyhkixjsvxli jmwgep}ievfikmrrmrkNeryev}4/53471Xligmx}lewvigimzihxlmwe{evhjsvieglfyhkixmxlew tvitevihjsvxlitewxjsyv}ievw1 Mrsvhivxsvigimzixlmwe{evh/ekszivrqirxepyrmxqywxtyfpmwlefyhkixhsgyqirxxlexqiixwtvskveq gvmxivmeewe tspmg}hsgyqirx/ewerstivexmsrwkymhi/ewejmrergmeptpererhewegsqqyrmgexmsrwhizmgi1 Xlmwe{evhmwzepmhjsvetivmshsjsri}ievsrp}1[ifipmizisyvgyvvirxfyhkixgsrxmryiwxsgsrjsvqxs tvskveqviuymviqirxw/erh{ieviwyfqmxxmrkmxxsKJSExshixivqmrimxwipmkmfmpmx}jsversxlive{evh1 IQXGTPOGPVHKPCPEGQHHKEGTUCUUQEKCVKQP D istinguished B udgetPresentation Award PRESENTEDTO CityofMonticello Minnesota HqtvjgHkuecn[gctDgikppkpi January1,2014 GzgewvkxgFktgevqt 6 BUDGETMESSAGE INTRODUCTION Morethanjustacollectionoffinancialinformation,thebudgetisatool.Howthisversatiletoolis useddependsonthestakeholder.Policymakersusethebudgettoprovidedirectiononservice levelsandplacelimitsonspending.Formanagers,thebudgetoffersbenchmarksformeasuring performanceandstewardship.Tocommunityadvocacygroups,thebudgetconveysvisibilityasto whethertheirconcernsarebeingaddressed.Overall,thebudgetisatoolforcommunicatingthe city'splans,policies,procedures,andobjectivesregardingtheservicestobedeliveredandthe assetstobeacquiredintheupcomingandfuturefiscalyears.Indeed,thebudget’seffectivenessis meaningfullyinfluencedbytheconvictionofthevariousstakeholdersusingthisdynamictool. BUDGETPOLICYANDSTRATEGY Thebudgetdocumentwaspreparedafteranalyzingandevaluatingrequestsfromthevarious departments,andrepresentstherequestedfinancialsupportfortheoperationofthecityof Monticellofortheupcomingfiscalyear.Revenueestimatesareconservativeandrealistic.The importanceofasoundrevenuepicturecannotbeoverstated.Revenueestimatesarebasedon historicaltrendswithgreaterweightplacedonthemostcurrentyears. 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. Whilethe2015propertytaxlevyexceededinflation,thecity’sportionofthetaxlevyrate droppedbyover20%.2015Budget:$385,000(4.7%)levyincrease 6 2.Continuetodevelopandprovideanunequaledsystemofparks,trailsandrecreational facilities,includingtheuniqueassetsoftheMonticelloCommunityCenter,theMississippi RiverandconversionoftheBertramChainofLakespropertyintoaregionalpark. Inpartnershipwiththecounty,thecitycontinuestoacquireparklandwithstategrantsand localcontributions.Thecityandcountyevenlysplitthelocalcontribution,whichisroughly 10%forlanddesignatedfornon-athleticpurposesand50%forlanddesignatedforathletic purposes.2015Budget:$552,000 3.Continuetomaintainthecitystreetsbyfollowinganannualsealcoatandcrackseal programandoverlayingstreetsbeforetheyarebeyondrepairandneedreplacing. Thecity’spavementmanagementprogramidentifiesvaryingconditionlevelsofevery street.The2015GeneralFundincludesarobustamountforchip/sealmaintenance.This higher-levelofmaintenancebeganin2014.2015Budget:$165,000 4.Developandadoptalong-rangetransportationplanwhichwillimprovetrafficflowaround andthroughthecity. Anengineeringstudyforidentifyinganinterstateinterchangesiteonthewest-endofthe cityisincludedinthebudget.Thecityisalsoanactive,duepayingmemberoftheI-94 Coalition.2015Budget:$25,000–study;$6,600-membership 5.Implementthedowntownredevelopmentplanwhichwillmaintainadowntownareathat combinesasuccessfulcommercialdistrict,communityidentityandheritage,and connectionwiththeMississippiRiver. TheEconomicDevelopmentAuthorityFundincludesataxincrementfinancing(TIF1-22) districtthataccumulatesresourcesfordowntownredevelopmentexpenditures.Thecity continuestomodifyTIF1-22parameterstospurdevelopment.TheEDAwillcreate interfund-loantypearrangementsasneeded.2015Budget:$78,000 6.Seektoexpandthesupplyof"moveup"housingthatallowspeopletoupgradetheirhome withoutleavingthecommunity. Thecityfacilitatedthetransitionofforfeitedlandbackintodevelopment.Thepropertycan bepurchasedforconstructionofresidentialhomesbyindividualsordevelopers.The average$20,000lotsalepriceincludesspecialassessments.Revenuesfromlotsaleswillbe usedfordevelopingresidentialinfrastructureandamenities. 7.Seektodevelopandattractawiderangeofemploymentopportunitieswithagrowing emphasisonhigher-payingjobs. TheEconomicDevelopmentFundbudgetincludesmoneyforMarketMatching.This conceptpromotesthecity’scompetitiveadvantages(i.e.lowtaxes,propertyavailability, transportationaccess,etc.)tobusinesseslookingtomoveorgrow.2015Budget:$48,000 7 8.Continuetomaintainhighqualitywaterandsewagetreatmentfacilities. WiththesomeofthelowestwaterandsewageratesinMinnesota,thecityprovides excellentservicesfromthesetwoutilitiestoresidentsandbusinesses.Thebudgetincludes fundsforwastewatertreatmentfacilityimprovementsalongwithsufficientamountsfor additional,ongoingsystemimprovementsineachfund.Ourwaterisratedasoneofthe besttastinginMinnesota.2015Budget:Water-$300,000annually;Sewage-$300,000 annuallyand$3,322,000wastewaterfacility 9.Provideunequaledaccesstoinformationwithhighspeedinternet,phoneandtelevision throughitsfiberopticnetwork. TheFiberOpticsFundwillreceiveatransferfromtheLiquorFundtocontinueoperationsin 2015.Withsettlementofthebondholder’sclass-actionlawsuit,themissionofthecity’s telecommunicationsutilitywillcontinuetoadapttochangingcompetitivemarket conditions.2015Budget:$450,000Transfer Citycouncilandstaffusedthesegoalstodirectthedevelopmentofthe2015budget. TOTALBUDGET The2015budgetincludesallthefundsmaintainedbythecity.Eachfundisresponsibletoaccount foraparticularactivityoractivities.Eachfund-typewillbediscussedwithinthismessageandinthe budgetdocument. Thefollowingcomparestheadopted2014and2015budgets: Fund-type 2014 2015 2014 2015 GeneralFund 6,802,000$7,246,000$6,802,000$7,246,000$ SpecialRevenueFunds 3,833,516 3,905,133 3,565,129 3,593,787 DebtServiceFunds 5,728,563 4,692,361 6,064,853 5,620,651 CapitalProjectFunds 2,682,500 4,941,170 3,615,300 7,263,000 EnterpriseFunds 10,702,120 14,307,134 11,800,054 15,336,610 InternalServiceFunds 382,138 436,911 1,003,028 645,360 Total 30,130,837$35,528,709$32,850,364$39,705,408$ Revenues Expenditures TotalBudget Totalrevenuesandexpendituresincreased18%and21%,respectively.GeneralFundrevenuesand expendituresincreased6.5%.Thedecreaseindebtserviceexpendituresreflectsamortizationof existingdebtwithouttheadditionofgreateroffsettingnewdebtservice.Capitalprojectfundswill incurhigherexpendituresbecauseoftheTH25/CSAH75project,whichisprimarilysupportedby 8 federalfunds.Financedbystategrantsandloans,plannedimprovementsatthecity’swastewater treatmentplantsignificantlyincreasedthebudgetfortheenterprisefund-type. Thefollowinggraphsdisplaytherevenuesandexpendituresattributabletoeachfund-typeinthe 2015Budget: GeneralFund 21% Special Revenue Funds 11%Debt Service Funds 13% Internal ServiceFunds 1% Capital Project Funds 14% Enterprise Funds 40% 2015REVENUESBYFUND-TYPE GeneralFund 18%Special Revenue Funds 9%DebtService Funds 14% Internal ServiceFunds 2% Capital Project Funds 18% Enterprise Funds 39% 2015EXPENDITURESBYFUND-TYPE 9 PROPERTYTAXES ThestateofMinnesotahasgrantedlocalmunicipalitiestheauthoritytolevytaxestofund operationsanddebtpayments.ForthecityofMonticello,thepropertytaxlevyaccountsforover 80%ofrevenuesintheGeneralFundandover30%inthespecialrevenuefunds.Thedebtservice funds,in2015,willlevy$1,290,000inpropertytaxesfordebtservicepayments,whichis2%higher thantheprioryear.Supplementedwithtransfersfromutilityfunds,reservesindebtservicefunds willalsocontributetothecity'sdebtpayments.For2015,thecity'spropertytaxlevywillincreaseto $8,535,000,anincreaseof$385,000(4.7%). Thefollowingtableprovidesahistoricalviewofthetaxcapacityvalue,taxcapacityrateandtax levy: TaxCapacity CapacityTaxCapacity Rate Tax Levy Year Value %Change Rate %Change Levy %Change 2005 11,840,000$6.3%58.760 -5.9%6,957,915$0.0% 2006 13,224,144 11.7%51.040 -13.1%6,750,000 -3.0% 2007 15,257,996 15.4%42.601 -16.5%6,500,000 -3.7% 2008 16,190,597 6.1%46.942 10.2%7,600,000 16.9% 2009 16,783,843 3.7%46.191 -1.6%7,750,000 2.0% 2010 16,691,266 -0.6%45.822 -0.8%7,648,272 -1.3% 2011 16,429,431 -1.6%46.729 2.0%7,677,309 -0.9% 2012 15,771,688 -4.0%49.773 6.5%7,850,000 2.2% 2013 18,692,762 18.6%42.262 -15.1%7,900,000 0.6% 2014 18,244,090 -2.4%44.672 5.7%8,150,000 3.2% 2015 23,887,018 30.9%35.731 -20.0%8,535,000 4.7% Undercontract,theWrightCountyassessorvaluesallpropertieslocatedwithinthecity’scorporate limits.Thismarketvalueisappliedtotheclassratesassignedbythestatetodetermineaproperty's taxcapacity.Thecountyestimatesthecity'staxcapacityfortaxespayablein2015at$23,887,018 whichisa30.9%increase.Xcel’snuclearpowerplantuprateadded$251milliontothecity’staxable marketvalue.Thecity'spropertytaxlevyisdividedbythetaxcapacitytodeterminethecity'stax capacityrate.Thetaxcapacityrateisappliedtoeachproperty'staxcapacitytodeterminethetax thecitywillcollectbeforeanycreditsareapplied.For2015,thecity'staxrateisexpectedtochange from44.672%to35.731%,a20%decrease. Thecityatthistimedoesnothavetheauthoritytolevyorcollectlocalsalestaxesorothertypesof taxesunderthestate'staxsystem. PERSONNELSERVICES Thecity's2015budgetincludesonenewpositioninthewaterandsewageutility,astepincreasefor employeesstillmovingupthepayscalesystemanda3%wageadjustmentforallemployees.In 10 2013,thecityre-institutedthestep-payscaleplandiscontinuedin2010.PublicWorksemployees belongtoaunion.Theunion’scollectivebargainingagreementexpiresMarch31,2015. Thecitywillparticipateontheunion’shealthinsuranceplanin2015.Theunion’splanrequiresa flatpremiumforunionandnon-unionfull-timeemployeesregardlessofparticipation.Actualcosts willincrease,aswillthecoverageandemployeecontributionsfornon-unionmembers.Overall costsarelowerthanprioryearbudgetedamounts.Staffwillcontinuetoexplorewaystoreduce futurepremiumincreasestoboththecityanditsemployees. Whilethereisonlyonenewfull-timepositioninthe2014budget,thecitycontinuestoexperiment withdifferentstaffingscenarios.Onesuchexperimentmergesthedutiesandresponsibilitiesofthe financedirectorandthepublicworksdirector.Aplannedretirementwillaffectchangesin communitydevelopmentandclerkingroles. ThecontributionratestothePublicEmployeesRetirementAssociation(PERA)for2015forboth employerandemployeeswillincreaseby.25%.Effective2015PERArates:7.50%ofwagesfor employerand6.50%foremployee.ThebudgetalsoestimatesFICAandMedicaretaxesat6.20% and1.45%respectivelyfor2014. Theremainderofthissectionwilldescribethemajorinitiativesfor2015foreachofthefundtypes andtheiractivities. GENERALFUND Expenditures The2015budgetincreased6.5%overthe2014budget.Changesinfundingpathwayand stormwaterimprovementsadded1%ofthe6.5%.AnadditionaltransfertotheCapitalProjects fundplusahighwaystudyaddedabout1%.Thewageincreaseaddedapproximately2%. Thefollowingscheduledisplays2015budgetedGeneralFundexpendituresbydepartment comparedwiththeprioryears: Department 2014 2015 %Change GeneralGovernment 1,497,518$1,486,453$-0.7% PublicSafety 1,839,049 1,897,908 3.2% PublicWorks 2,439,443 2,612,303 7.1% Recreation&Culture 923,974 1,077,937 16.7% Unallocated 9,016 7,329 -18.7% OperatingTransfers 93,000 164,070 76.4% Total 6,802,000$7,246,000$6.5% 2015GeneralFundExpendituresandOtherUses 11 General Government 21% PublicSafety 26%PublicWorks 36% Recreation 15% Other 2% GeneralFundExpenditures-2015 ThePublicWorksDepartmentisthelargestdepartmentintermsofbudgetedexpendituresandthe streetandalleysactivitybudgetisthelargestactivitywithinthedepartment.The2015budgetfor thePublicWorksincreased7.1%.Engineering(+24%),refusecollection(+13%)andstormwater (+121%)arelargelyresponsiblefortheoverallincrease.Theadditionofaninterchangestudy,an increaseincontractedrefusecollectionfees,andthetransferofstormwatermaintenancetothe GeneralFundarelargelyattributablefortheoveralldepartmentalincrease. Aswithalldepartments,personnelservicesincreasedwithwageandbenefitinflation. ThesecondlargestdepartmentbasedonexpendituresisthePublicSafetyDepartment.Public safetyactivitiesincludelawenforcement,fire,buildinginspections,civildefense,NationalGuard, andanimalcontrol.ThecitycontractswiththeWrightCountySheriff'sdepartmentforlaw enforcement.The2015contractincludesa$2.00increaseinthehourlyrateataservicelevel,which remainsfourhourslessperdaythanwhatitwasin2013. Thefirereliefactivity(+6%)budgetpaysfortheretirementofthecity'spaidon-callvolunteerforce. Thisactivityincreasedtoreflectadditionalstatefunding(i.e.fireinsurancepremiumsurcharges). Additionofpart-timehelpincreasedthebuildinginspectionsactivity(+7%).ThePublicSafety Departmentbudgetincreased3.2%in2015. Theoverallbudgetforgeneralgovernmentactivitiesremainedessentiallyunchangedforthe upcomingyear.Electionsdroppedsignificantlybecause2015isanoffyearforelections.The increaseinhumanresources(+10%)denotesplannedleadershiptrainingin2015.ThePrairieCenter dropisin-linewithhistoricaltrends.Asasidenote,ITservicescostsaredistributedtoeachbudget. TheITFundcentralizesITcostsintoonereportingunitandallocatesthemtoeachbudgetunit basedonuse.TheITServicesFundstartedinthelatterhalfof2013. 12 Recreationandcultureincreasedby17%in2015.Transit(+1233%)increasedbecausethecitywas abandonedbyastate-approvedserviceprovider.Anewproviderwillbepaid$40,000annually. Parkoperationactivities(+15%)increasedbecausetheGeneralFundwillnowfinancepathway maintenance.Thehighershadetree(+13%)activitybudgetdemonstratesadesiretoimprove Monticello’slivability. Operatingtransferstootherfundsinclude$94,900totheEDAFundand$69,170totheCapital ProjectsFundforfinancingassistanceonvariousprojects. Includingservicesforpolice,assessor,andlegalservices,otherservicesandchargesaccountfor 49%ofGeneralFundappropriations.Appropriationsforpersonnelservicesfollowcloselywith38% ofthetotal.Capitaloutlayincreasedalongwithleasepayments—internalrent--totheCentral EquipmentFundandthemovementofsomestormwaterandpathwayimprovementstothe GeneralFund.Anewcapitalizationthresholdof$10,000resultedinhighersuppliescosts. Thefollowingtableandgraphprovideperspectiveonexpendituresandotherusesforthevarious GeneralFundclassificationsinthe2015budget: Classification 2014 2015 %Change PersonnelServices 2,680,760$2,734,757$2.0% Supplies 543,975 575,800 5.9% OtherServices&Charges 3,358,565 3,575,773 6.5% CapitalOutlay 125,700 195,600 55.6% OperatingTransfers 93,000 164,070 76.4% Total 6,802,000$7,246,000$6.5% 2015GeneralFundAppropriations Personnel Services 38% Supplies 8% Capital Outlay 3% Other Services& Charges 49% Operating Transfers 2% ExpendituresandOtherUses-2015 13 Revenues TherevenuesandothersourcestosupportGeneralFundexpendituresandotherusesareclassified asfollows: Classification 2014 2015 %Change PropertyTaxes 5,497,000$5,882,000$7.0% Franchise&OtherTaxes 236,500 236,500 0.0% Licenses&Permits 273,180 321,180 17.6% IntergovernmentalRevenues 289,677 299,677 3.5% ChargesforServices 261,198 267,261 2.3% Fines&Forfeits 42,100 42,100 0.0% SpecialAssessments 300 300 0.0% Miscellaneous 202,045 196,982 -2.5% OperatingTransfers ----- Total 6,802,000$7,246,000$6.5% 2015GeneralFundRevenuesandOtherSources Whilethetaxlevyincreased4.7%overall,theGeneralFund’sportionofitgrewby7%.Licenses& permitsreflectamodestuptickinresidentialandcommercialdevelopment,whichreboundedin 2013andcontinuedinto2014.Supportingthestreetlightingactivity,franchiseandothertaxesare expectedtoremainthesame.Intergovernmentalrevenuesarerecoveringslightlyalongwiththe state’sfinances.Chargesforservicesreflectminorincreasesforpublicsafetyandotherservices. Miscellaneousrevenues,whichincludeinvestmentearnings,areconservativelypredictedtobe stable. Thepropertytaxlevygenerates81%oftheGeneralFundrevenues.Otherthanfranchisefees,the citydoesnothavetheabilitytoimposeothertaxes,suchaslocalsalestaxesorincometaxes. Therefore,thecitywillcontinuetobedependentonpropertytaxrevenueasitsmajorsourceof futurerevenues. SPECIALREVENUEFUNDS ThecityofMonticellocurrentlyoperatesspecialrevenuefundsforeconomicdevelopment, cemetery,andcommunitycenteractivities.SpecialrevenuefundsalsoincludetheMinnesota InvestmentFund,butitwilllikelyseeverylittleactivityin2015. LiketheGeneralFund,thespecialrevenuefundbudgetsaresetataleveltomaintainservices.A portionofthetaxlevysupportscommunitycenteroperationsanddebtservice.Taxincrements supporteconomicdevelopmentactivitiesbuttheiruseisgenerallyrestrictedtospecificareas.In theEconomicDevelopmentFund,taxincrementsincreasedwiththeadditionofTIFDistrict1-39.In 2014,theDeputyRegistrarFundtransferred$50,000tothecommunitycenterforreplacementof thegymnasiumfloor. 14 Thefollowingtablesdisplaythechangeinrevenuesandothersourcesandthechangein expendituresandotherusesforspecialrevenuefundsin2015: Classification 2014 2015 %Change PropertyTaxes 1,390,000$1,363,000$-1.9% TaxIncrements 672,494 726,215 8.0% ChargesforServices 1,374,550 1,416,100 3.0% Miscellaneous 253,472 304,918 20.3% OperatingTransfers 143,000 94,900 -33.6% Total 3,833,516$3,905,133$1.9% 2015SpecialRevenueFundRevenues&OtherSources Classification 2014 2015 %Change PersonnelServices 1,014,000$1,018,942$0.5% Supplies 244,275 262,171 7.3% OtherServices&Charges 572,558 606,988 6.0% CapitalOutlay 415,943 428,786 3.1% OperatingTransfers 1,318,353 1,276,900 -3.1% Total 3,565,129$3,593,787$0.8% 2015SpecialRevenueFundAppropriations DEBTSERVICEFUNDS Thecity'sdebtservicefor2015is$5,620,853or$444,202lessthantheprioryear.Fundingfordebt servicecomesfromspecialassessments,taxincrements,propertytaxesandtransfersfromthe stormwateraccessfundandthewaterandsewagefunds.Additionalresourcesmaybeneededin onedebtservicefundbecausetwoparcelsaredelinquenton$1.7millioninspecialassessments. Thereserveintheaffectedfundwillbedrawndownuntilotherresourcesbecomeavailable. Furthertransfersfromutilityfundswillsupplanttransfersfromdepletedandclosedaccessfunds. Outstandingdebt:debtservicefunds-$21,192,000;enterprisefunds-$3,220,000;internalservice funds-$895,000.Thecity'sbondratingfromMoody’sInvestorsServicesisan"A2". CAPITALPROJECTFUNDS Thebudgetforcapitalprojectfundsarebasedonthe2015projectexpenditureslistedinthecity's five-yearcapitalimprovementplan.Thecity'sfive-yearcapitalimprovementplanisincludedina latersectionofthisreport.Thecityhastwomajorprojectsmovingforwardin2015:TH25/CSAH75 intersectionandFallonAvenueoverpass.Bothmulti-yearprojectswillbefundedinitiallybystate streetaid--intergovernmentalrevenue. ENTERPRISEFUNDS Totalenterpriserevenuesandothersourcesareestimatedat$14,066,684for2015.The2015 budgetincluded$3.3millionindebtproceedsforwastewatertreatmentplantimprovements 15 (capitaloutlay).Operatingtransfersfromotherfundsinclude$450,000fromanotherenterprise fund:LiquorFundtoFiberOpticsFund.ThechangeinSaleofGoodsrepresentsaconservative budgetpolicyofestimatingfuturemunicipalliquorsalesat96%ofactualsalesfortheprioryear.A changeinenterprisefundassessmentaccountingcausedthedropinthatclassification. Classification 2014 2015 %Change SaleofGoods 4,944,500$4,973,000$0.6% Licenses&Permits 3,700 3,700 0.0% ChargesforServices 5,022,350 5,236,584 4.3% SpecialAssessments 150,000 30,000 -80.0% Miscellaneous 145,500 151,400 4.1% OperatingTransfers 350,000 450,000 28.6% DebtProceeds -3,322,000 --- Total 10,616,050$14,166,684$33.4% 2015EnterpriseFundRevenues&OtherSources Classification 2014 2015 %Change PersonnelServices 1,657,111$1,846,778$11.4% Supplies 4,307,910 4,209,200 -2.3% OtherServices&Charges 2,451,714 3,060,998 24.9% CapitalOutlay 802,764 4,277,000 432.8% DebtService 346,220 359,698 3.9% OperatingTransfers 2,234,335 1,582,936 -29.2% Total 11,800,054$15,336,610$30.0% 2015EnterpriseFundAppropriations PersonnelservicesincreasedwithstaffingchangesinPublicWorksandFiberNetandhigherwages andbenefits.Otherservicesandchargesincreasedtoincludereimbursableexpendituresincurred bythecontractoroperatingthewastewatertreatmentplantandengineeringstudy,bothinthe SewageFund.Prioryearreimbursableamountswerenotincludedinthebudget.Loweroperating transfersfromutilityfundsaffirmthatthecityisaheadwithsupplantingthedepletionofimpact feesfromtheSanitarySewerandWaterAccessfunds. INTERNALSERVICEFUNDS Thetwointernalservicefundswereinitiatedin2013:IT(InformationTechnologies)ServicesFund andCentralEquipmentFund.Thesefundsoperateonacost-recoverybasisbutthetimehorizonfor thebasisdiffersgreatly.TheITServicesFundisrelativelylesscapitalintensivewithannualcapital outlaysinthe$20,000to$30,000range.TheCentralEquipmentFundcanincurdebttomakemajor purchasesandthenrecoverthosecoststhroughannualrentalpaymentstobenefitting departments.Theoretically,annualdepreciationandinflationforeachcapitalassetwillbeusedin calculatingannualrentalpayments,whichwillprovidefundsformajorequipmentreplacement throughannualoperatingbudgets.Exceptfordebtproceeds,internalservicefundrevenuesare includedinexpendituresofotherfunds. 16 FUNDBALANCES Forthemostpart,cityfundbalancesareexpectedtobestableforitsmainoperatingfundsin2015. Oneexception,theSewageFundwilltransfernearly$600thousandtodebtservicefundsfor retirementofdebtrelatedtosewagesystemimprovementsandincur$400thousandincapital outlaysnotreimbursedwithdebtproceeds.Inprioryears,impactfeessupportedthedebtservice. Thisisamajordeparturefrom2012,wherefundbalancesweregreatlyimpactedbytheretirement of$6millionininterfundloans.Nointerfundloansareinthe2014or2015budgets.Variousdebt servicefundswillseedeclineswithamortizationofspecialassessments.Capitalprojectfundswill experienceadeclineinreservesastheyprovidefinancingfornon-recurringcapitalexpenditures. Totalexpendituresexceedtotalrevenuesby$4.2millioninthe2015budget.Thecityaccumulates moneyindebtservicefundstomakedebtservicepaymentsinthefollowingyear.Thedeclinein debtservicefundreservescorrelatewithlowerfuturepaymentsasthedebtisamortized.Further, reserveswillprovidenearly$1.9millioninfinancingfornon-recurringexpendituresincapital projectfunds.Asignificantportionofthesecostswillprobablybereimbursedwithproceedsfrom futuredebt.ThecityadoptedbalancedbudgetsforboththeGeneralFundandtheMonticello CommunityCenterFundfor2015. CHALLENGESINCONTEXT Thepreparationofthisbudgetreflectsthecollisionofbothshort-termandlong-termchallenges. Thelackofanticipatedeconomicdevelopmentfromaprolongedrecessionandanemicrecovery continuestohaveasignificantimpactonthecity’sfinances.First,lowimpactfeerevenuehas causedthecitytolookatotherfinancingoptions,suchasusingutilityfundrevenues,tomakedebt servicepayments.Thecouncil’sgoalofmaintainingalowtaxlevymakesthisanevengreater challenge.Thecrushondebtservicefundssupportedbyimpactfeeshasbeenabatedwithtransfers fromutilityfundsandearlyassessmentpayoffs. Second,thecitywillrealizeasignificantdropinthetaxlevyneededtosupportdebtservice paymentsin2016.However,thedropwouldhavebeenapproximately$1millionhaditnotbeen forthe$500,000thecitywillneedtolevyannually,beginningin2016,forthenext15yearsonthe judgmentbonds.Thecitywilllikelyusetheother$500,000forprojectsin2016andtosupportdebt servicepaymentsin2017andbeyond. Third,thesettlementofthetelecommunicationbondholder’sclass-actionlawsuitprovidescertainty andallowscityleaderstofocusonotherconcerns.Thecityismovingaheadwithsmallercapital projectsfor2015andlargerprojectsfor2016andthereafter.Thesesmallerprojectshave reimbursementresolutions,meaningthecitywilllikelyrecovertheirtemporarydrawonreserves withdebtproceeds.Theonelargeprojectin2015,TH25/CSAH75intersectionimprovements,is primarilyfinancedwithintergovernmental(federalorstatemonies)revenue. Fourth,newleadershiptakesoverin2015.Thelong-timemayorchosenottorunforre-election andaservingcouncilmemberwaselectedtotherole.Inaddition,onenewcouncilorwillbeseated 17 in2015.The2015budgetwillbesubjecttominormodificationasprioritieschangeasthatyear progresses.Growththemesandemphasisonpublicsafetywilllikelydominateindraftingthe2016 budget.Theelectioncyclecreatedanearlyopportunityfortheapprovalofprojectsinadvanceof electionresults. Insummary,modesteconomicimprovement,debtamortization,settlementofalawsuit,andthe electioncycleimpactedthedecisionsindraftingthe2015budget. DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presenteda DistinguishedBudgetPresentationAwardtotheCityofMonticello,Minnesotaforitsannualbudget forthefiscalyearbeginningJanuary1,2014.Inordertoreceivethisaward,agovernmentalunit mustpublishabudgetdocumentthatmeetsprogramcriteriaasapolicydocument,asan operationsguide,asafinancialplan,andacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuesto conformtoprogramrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityfor anotheraward. CONCLUSION Conservationofcityfinancialresourcescontinuestobeaveryimportantobjective.Thebudgetis theprimetoolinmakingsurelimitedresourcesarewiselyutilized.Itismybeliefthatthe2014 budgetallowsthecitytodeliverexcellentmunicipalservicesinacosteffectiveandefficientmanner atcurrentlevels.The2015budgetisaproductofcollectiveeffortsbythecitycouncil,staffand variousotherstakeholders.Theircommitment,goodjudgmentandexpertiseareinvaluabletothe budgetprocess. Sincerely, JeffO’Neill WayneW.Oberg CityAdministrator FinanceDirector 18 COMMUNITY,DEMOGRAPHIC,ANDSTATISTICALINFORMATION ThecityofMonticellowasorganizedasamunicipalityin1856.Monticelloislocatedapproximately45miles northwestoftheMinneapolis-St.PaulmetropolitanareaalongtheI-94corridorinWrightCounty.The2010 U.S.CensusestimatedMonticello'spopulationat12,759andthecityencompassesanareaof8.94square miles.Thecityoperatesunderastatutoryformofgovernment.Themayorandfourcouncilors(together knownas"citycouncil")governthecity.Thecouncilorsareeachelectedtofour-yeartermsandthemayora two-yearterm.ThemayorpresidesoverandisavotingmemberoftheCityCouncil.Themayoristhechief authorityforadministeringcitygovernmentandappointsdepartmentheads,variousboardmembersand commissionmembers.TheCityCouncilisthelegislativebodyandmeetsregularlytwiceamonth.The Council'smainresponsibilitiesaretoappropriatefunds,setsalaries,adoptordinances,andapprovebudgets. Monticellohasavariedbusinesscommunitywithahealthymixofretailandmanufacturing.Thecitywashit hardbytherecessionandisslowlyrecovering.Cityunemploymentratesaresimilartothatofthestate,but thestate’sratehasbeenslightlybetterlately(seethefollowingtable). AverageEmployment Year WrightCounty WrightCounty StateofMinnesota 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% 2014 70,453 4.4%3.7% HISTORICALEMPLOYMENT/UNEMPLOYMENTDATA (Ratesarenotcompiledforindividualcommunitieswithincounties) AverageUnemployment Hometooneofthetwostatenucleargenerationplants,Monticello’slargestemployerisXcelEnergy.Agri- giantCargillalsomaintainsastrongpresenceinthecity.Thefollowingtableliststhetoptenemployersinthe community. Employer Employees XcelEnergy(NorthernStates)2,000 ISDNo.882(Monticello)544 CentraCareMedicalCenter 500 CargillKitchenSol.(SunnyFresh)350 WalmartSupercenter 325 CubFoods 180 UltraMachineCorporation 173 HomeDepot 160 CityofMonticello 100 HoglundBus 88 TOPTENCITYEMPLOYERS 19 Monticello’spopulationandhouseholdsare.2%ofstate’stotalforbothmeasures.WithaWal-Mart,Target, andHomeDepot,itisnosurprisethatretailsalesperpersonarehigherthanthestateaverage.Thefollowing tablecontainsselectedfactsonthecity: PeopleQuickFacts Monticello Minnesota Population,2013estimate 12,901 5,420,380 Population,2010 12,759 5,303,925 Population,percentchange,April1,2010toJuly1,2013 2.1%2.2% Personsunder5years,percent,2010 10.1%6.4% Personsunder18years,percent,2010 30.8%23.6% Persons65yearsandover,percent,2010 9.5%13.9% Femalepersons,percent,2010 50.8%50.3% Whitepersons,percent,2010(a)92.6%86.2% Totalnumberoffirms,2007 1,258 496,657 Retailsalespercapita,2007 $28,756 $13,751 Landareainsquaremiles,2010 8.94 79,626.74 Personspersquaremile,2010 1,427.2 66.6 Housingunits,2010 4,973 2,368,711 Homeownershiprate,2009-2013 70.9%72.5% Housingunitsinmulti-unitstructures,percent,2009-2013 19.4%21.6% Medianvalueofowner-occupiedhousingunits,2009-2013 $168,900 $187,900 Households,2009-2013 4,827 2,107,232 Personsperhousehold,2009-2013 2.63 2.47 Percapitamoneyincomeinthepast12months(2013dollars)$28,756 $30,913 Medianhouseholdincome,2009-2013 $72,650 $59,836 Thenuclearplantaccountsforapproximately40%ofcity’smettaxcapacity.Xcel’staxcapacityandthe council’sconservativetaxlevyphilosophyaremainreasonsthecitytaxcapacityrateisthesecondlowestin WrightCounty.Indeed,upgradestotheXcelplantin2011contributedto15%declineinthe2013tax capacityrate.Likewise,Xcelupgradesin2013produceda20percentdeclineinthe2015taxrate.Thetax baseisaboutone-thirdresidentialandtwo-thirdscommercial.Thefollowingtableliststhetaxratesforeach cityinWrightCounty,Minnesota: 2011 2012 2013 2014 2015 2014-152014-15 City TaxRateTaxRateTaxRateTaxRateTaxRateChangeChange% CityofMonticello 46.729 49.773 42.234 44.709 35.732 -8.977-20.1% CityofSt.Michael 34.421 39.110 43.917 41.843 38.476 -3.367 -8.0% CityofOtsego 34.014 41.454 46.160 44.575 41.162 -3.413 -7.7% CityofHanover 44.398 48.719 52.398 52.141 48.207 -3.934 -7.5% CityofAlbertville 41.933 46.645 51.924 51.092 51.273 0.181 0.4% CityofBuffalo 38.448 47.076 51.834 49.893 52.456 2.563 5.1% CityofDelano 46.610 52.587 59.746 56.681 54.081 -2.600 -4.6% CityofDayton 48.567 57.817 63.921 65.600 56.945 -8.655 -13.2% CityofMontrose 47.737 55.864 67.204 60.204 57.218 -2.986 -5.0% CityofRockford 50.353 54.427 59.487 59.032 57.335 -1.697 -2.9% CityofMapleLake 45.905 54.242 56.283 57.733 59.139 1.406 2.4% CityofAnnandale 54.658 64.886 73.113 71.525 69.012 -2.513 -3.5% CityofHowardLake 53.823 68.778 74.718 76.180 72.093 -4.087 -5.4% CityofClearwater 75.263 86.244 87.552 87.259 75.294 -11.965 -13.7% CityofCokato 63.498 77.094 80.941 74.684 80.426 5.742 7.7% CityofWaverly 68.759 82.562 90.842 93.137 87.064 -6.073 -6.5% CityofSouthHaven 93.540117.591130.981137.657130.381 -7.276 -5.3% CITYTAXRATESINWRIGHTCOUNTY,MINNESOTA 20 Monticellogrewbyapproximatelyone-thirdoverthelasttenyears.Thecityhasampleundeveloped commercialandresidentialrealestateandispositionwelltobenefitfrommoreurbanflightfromtheTwin Cities.Accesstomajortransportationcorridorsmakesthecityanideallocationforfuturegrowth.The followingtableincludespopulationstatisticsoverthelasttenyears: YearPolulationChange 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 12,840 81 2013 12,901 61 2014 12,993 92 TheabovestatisticsreflectamoreaccurateCensuscount,whichisthe2011total.Theothercountsare fromthestatedemographer. 21 MAPOFMONTICELLO,MINNESOTA 22 COREVALUES Thisdocumentispreparedbythecity’sfinancedepartment.Thecorevaluesofthedepartmentservea guideforthewaywedeliverinternalandexternalcustomerservices.Thesecorevaluesarehowwe conductourselvesandwhatcreatethecultureofourdepartment. Competent (Howwellwedoourjobs) Beopen,hardworking,reliable,innovative,safe,and accountabletothepublic. Courteous (Howwellwetreatothers) Workunselfishlyinapositive,politeandprofessional mannerforourcommunityanditscitizens. Cooperative (Howwellweworktogether) Leadbyexampleandworktogether toachievethebestresult. 23 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. 24 PLANNINGPROCESSES Thecityplansforthelong-termneedsofourcommunitythroughanumberofeffortsandstudies. Thesedocumentsareusuallydevelopedbyconsultantsandstaff,withnumerouspublichearings andadvisoryboardmeetingspriortotheirformaladoptionbytheCityCouncil.Onceadopted,we workdiligentlytoimplementtherecommendationsandchangesoutlinedintheplans.Hereisthe statusofourprimaryplanningdocuments: Plansforserviceprovision,facilityexpansion&maintenance: 1.MonticelloComprehensivePlan-Adopted2008. TheComprehensivePlanisatoolforguidingthegrowth,redevelopmentandimprovement ofMonticello.TheComprehensivePlanoutlinesthevisionforthecommunity.Thecurrent planupdatewasadoptedin2008.VariouschaptersoftheComprehensivePlanhavebeen amendedinpartorfullsinceadoption.Theprofessionalserviceslineitem,underthe2015 planningandzoningbudget,containsmoneyforinterpretingandimplementingthe comprehensiveplan. 2.TransportationPlan-Adopted2011. Thecity’sTransportationPlanisaguidethat;identifiesandcharacterizesthecity’sexisting transportationsystem;identifiesanddiscussesgeneralplanningfactorspertainingtofuture transportationneedsforthecity;identifiespotentialfutureroadwaydeficienciesand assessesimprovementoptionstoaddressthedeficiencies;providesanoverallplan addressingcapitalimprovementneeds,functionalclassification,jurisdiction,right-of-way issues,bicycle/pedestrianconsiderationsandtransit.TheTransportationPlandocument willbeupdatedasnecessaryasgrowthincreases.Ongoingmajortransportationefforts include:TH25/CSAH75Intersectionimprovementstobeconstructedin2015,Fallon AvenueOverpass-rightofwayacquisitionanddesignanticipatedin2015,Regional transportationplanningtoaddresstheTH25corridor,TH25/7th Streetintersection improvements-plannedfor2016. 3.Parks&PathwaysPlan-Adopted2011. Chapter4–ParksoftheMonticelloComprehensivePlanwasamendedin2011forthe adoptionofanupdatedParkandPathwayPlan.TheMonticelloParksandPathwaysPlan identifiestheCity’sobjectivesforParksandPathwaysplanninganddevelopment,building ontheexistingparksinfrastructure,andprovidescontextfortheCity’sparticipationinthe acquisitionanddevelopmentoftheBertramChainofLakesRegionalPark.The2015Park andPathwayDedicationFundbudgetincludes$85,000forEdmonsonpathwayextensionto HuntersCrossingand$85,000foramenitiesintheHuntersCrossingPark. 25 4.EmbracingDowntownPlan–Adopted2012 Chapter3–LandUseoftheMonticelloComprehensivePlanwasamendedin2012forthe adoptionoftheEmbracingDowntownPlan.TheEmbracingDowntownPlanisan implementationplanwhichintegratesmarket,transportation,landuse,andfinance considerationsforthepurposeofcreatingavibrantdowntowndistrict. 5.EconomicDevelopmentStrategicPlan–Pending The2015EconomicDevelopmentFundbudgetincludes$48,000formarketmatching activities,whichincludesstrategicplandevelopment. 6.NaturalResourceInventory&Assessment-Adopted2008. ThepurposeoftheNaturalResourceInventoryandAssessment(NRI/A),adoptedin2008,is toidentifyexistingnaturalresourceswithintheCityofMonticelloanditsgrowtharea(the MonticelloOrderlyAnnexationArea),inventorytheseresources,andassesstheresource quality.Theseresourcesarethenconsideredandevaluatedduringgrowth/development. 7.BertramChainofLakesRecreationPlan–Adopted2011. The2008ComprehensivePlanand2011Park&PathwayPlanrecognizetheBertramChain ofLakesRegionalParkasasignificantcomponentofthecommunity’squalityoflife initiatives.Theconceptplanforthefullregionalparkandathleticcomplexwasadoptedin 2011aspartoftheParkandPathwayplan.CityCouncilauthorizedconsiderationofa portionofthebio-solidsfarm(southern20-25acres)forathleticcomplexrecreationalplan. Amoredetailedplanforathleticcomplexdevelopmentisanticipatedaspartof2015 planningprocess.The2015ParkandPathwayDedicationFundbudgetincludes$90,000for creatingastageddevelopmentplanand$552,000foradditionparklandacquisition. 8.StormWaterPollutionPreventionProgram-Adopted2007. In2005theCityofMonticellowasdesignatedasaregulatedsmallmunicipalseparate stormsewersystem(MS4)underMinnesotaRules,Chapter7090.ThisrequiredtheCityto obtainaNationalPollutantDischargeEliminationSystem/StateDisposalSystem (NPDES/SDS)stormwaterpermit,andtodevelopandimplementaStormWaterPollution Prevention(SWPPP)toreducethedischargeofpollutants,includingsediments,fromour stormsewersystemtothemaximumextentpracticable. TheCityiscontinuingtoimplementtherequiredsixminimumcontrolmeasures(MCM’s) asfollows: A.PublicEducationandOutreach, B.PublicParticipationandInvolvement, 26 C.IllicitDischargeDetectionandElimination, D.ConstructionSiteStormwaterRunoffControl, E.Post-ConstructionStormwaterManagementMeasures;and, F.PollutionPrevention/GoodHousekeepingMeasures. Zoning,subdivisionandillicitdischargeordinanceswereadoptedin2014relatedto grading,drainage,erosioncontrol,andstormwatermanagementtomeetcurrentMPCA requirements. 9.ComprehensiveWaterResourceManagementPlan-Updated2006. TheComprehensiveWaterResourceManagementPlanwasdevelopedtomeetlocal watershedmanagementplanningrequirementsoftheMetropolitanSurfaceWater ManagementActandBoardofWaterandSoilResourcesRules8410.Itwasdevelopedto beinconformancewiththerequirementsofMetropolitanCouncilrequirements,and applicableStateandFederallaws.Theplananditsreferencedliteratureisintendedto provideacomprehensiveinventoryofpertinentwaterresourcerelatedinformationthat affectstheCityandmanagementofthoseresources. 10.PlanRequirementsandDesignGuidelines(“DesignManual”)-Updated2008. TheseguidelinesweredevelopedfordevelopersofpropertywithintheCityofMonticello. Theguidelinesprovidedesignstandards,specifications,anddetailplatesforthedesignof infrastructureimprovements,street,utility,andsiteworkconstruction. TheseguidelinesarenowreferencedintheCity’szoningandsubdivisionordinanceswere adoptedin2014relatedtograding,drainage,erosioncontrol,andstormwater management.TheDesignManualisanticipatedtobeupdatedin2015. 11.GeneralSpecificationsandStandardDetailPlatesforStreetandUtilityConstruction- Updated2009. ThesespecificationsrepresenttheCity’srequirementsforconstructionofpublicstreetand utilitysystems.Thisdocumentisanticipatedtobeupdatedin2015. 12.WaterSystemPlan–Adoptedin2004. Awaterdistributionsystemmodelwascreatedin2004toevaluatetheexistingwater system.Thewatersystemplanwasthendevelopedusingthismodeltoidentifywater systemcapitalimprovementsnecessarytoservefuturelandusedesignationsinaccordance withtheCity’sComprehensivePlan.Theupdateofthisplanisscheduledin2016,estimated costof$50,000. 27 13.SanitarySewerComprehensivePlan–Adoptedin1995. Thesanitarysewercomprehensiveplanswasadoptedin1995andidentifiedtheexisting sanitarysewersystemandalsoprojectedfuturewastewaterflowsandserviceareasbased futurelandusedesignationsinaccordancewiththeCity’sComprehensivePlan.Several individualsanitarysewerstudiesweredevelopedaftertheadoptionofthisplaninresponse todevelopment.The2015budgetincludes$50,000forupdatingthisplanandcreatinga systemmodel. 14.InterchangePlanningStudy–Pending(2015/2016). TheInterchangeplanningstudywilldetermineareasonablelocationorlocationsfora futureI-94InterchangewithintheCitywestofTH25.The2008ComprehensivePlan recognizesthattheNorthwestMonticello,whichincludestheCSAH39toOrchardRoad corridor,asaprimaryfocusforfuturedevelopmentandfurthercitestheInterchange Planningasacriticalcomponentofunderstandinggrowthpotentialandlanduseinthe NorthwestArea.The2015budgetincludes$25,000forthestudy. 15.WellheadProtectionPlan(Part1and2)-expectedtobecompleted2015. ThegoaloftheWellheadProtectionPlanistopreventhuman-causedcontaminantsfrom enteringthewatersupplywellsandtoprotectallwhousethewatersupplyfromadverse healtheffectsassociatedwithgroundwatercontamination.ThepreparationoftheCity’sas requiredbyMinnesotaRules4720.5100to5720.5590.TheWaterFund2015budget includes$20,000forcompletionofthisstudy. 16.TH25/RegionalTransportationPlanningGroup–Ongoing. AseriesofmeetingshavetakenplacewithrepresentativesinvitedfromtheCityofBigLake, BigLakeTownship,CityofBecker,BeckerTownship,WrightCounty,SherburneCounty, MnDOTDistrict3andtheCityofMonticellotodiscussregionaltransportationplanning. PlansforFacilityandInfrastructureMaintenance: 1.WastewaterTreatmentFacilityBiosolidsDewatering,EnergyEfficiency,Headworksand SiteImprovementsFeasibilityReport–Adopted2012. Dewateringfacilityiscompleteatyear-end2014.Theenergy-efficientaerationblowers andpipingwillbecompletedin2015.ThisprojectisfinancedbytheSewageFund. 28 2.WastewaterTreatmentPhosphorusReductionFacilityPlan–Adopted2014. FinalplansandspecificationsarenearingcompletionandtheprojectwillbebidinMayof 2015.Thefacilityplanwasamendedtoincludereplacementoftwodigestercovers.This projectwillbefinancedbytheSewageFund. 3.OverallStreetReconstructionProgram–Adopted2004,ongoingaspartofcapital improvementplan. The2015-2019CapitalImprovementPlanincludesthisproject,withdesignworkbeginning atendof2015andconstructionbeginninginthemiddle2016. 4.TransportationProjects TH25/7th StreetSignalImprovements–Possibleinterimimprovementsin2015with protectedleftturnlaneson7th Street.Ultimately,theprojectwillincludeflashingyellow arrowsandawestbound7th Streetrightturnlanein2016.Bothprojectsareinthecapital improvementplan.FallonAvenueOverpass-rightofwayacquisitionanddesign anticipatedin2015. FinancialPlans: 1.AnnualBudget-AdoptedeachDecember. 2.CapitalImprovementsPlan-Updatedandadoptedeachyear;mostrecentlyfor2015- 2019. 29 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. 30 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. 31 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 32 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.Constructionprojectsandcapitalexpendituresof$10,000ormorewillbeincludedinthe CapitalImprovementProgram(CIP);minorcapitaloutlaysoflessthan$10,000willbeincludedin theregularoperatingbudget. 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. 33 •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. 34 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. 35 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 36 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. 37 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 38 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. 39 ETHICSANDCONFLICTSOFINTEREST Officersandemployeesinvolvedintheinvestmentprocessshallrefrainfrompersonalbusiness activitythatcouldconflictwiththeproperexecutionandmanagementoftheinvestmentprogram, orthatcouldimpairtheirabilitytomakeimpartialdecisions.Employeesandinvestmentofficials shalldiscloseanymaterialinterestsinfinancialinstitutionswithwhichtheyconductbusiness.They shallfurtherdiscloseanypersonalfinancial/investmentpositionsthatcouldberelatedtothe performanceoftheinvestmentportfolio.Employeesandofficersshallrefrainfromundertaking personalinvestmenttransactionswiththesameindividualwithwhombusinessisconductedon behalfofthecity. POLICYREVISIONS Thecashmanagementandinvestmentpolicywillbereviewedperiodicallybythecity administrator/clerk-treasurerandfinancedirectorandmaybeamendedbycitycouncilactionas conditionswarrant. 40 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. 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. 41 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. 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. 42 FUNDBALANCESINEACHFUNDTYPE Ingovernmentalfunds,fundbalanceistypicallydefinedascurrentassetslesscurrentliabilities.Unlike governmentalfunds,enterprisefundsfocusonthedeterminationofoperatingincome,changesinnetposition (orcostrecovery),financialposition,andcashflows.Enterprisefundsuseanaccrualbasisofaccountingfor financialreportingpurposes.Amodifiedaccrualbasiswillbeusedforbudgetingpurposesinthisreport. Consequently,thebottomlineforeachenterprisefundislabeledfundbalanceratherthannetposition,which includescapitalassets,long-termdebtandothernoncurrentitems.Fundbalanceinenterprisefundsisroughly thesameasworkingcapital. USEFULTERMS Tobetterassistreadersinunderstandingthebudgetdocument,abasicknowledgeofthefollowing termsisuseful: A FUND isafiscalandaccountingentitywithaself-balancingsetofaccountsrecordingcashandother financialresources,togetherwithallrelatedliabilitiesandresidualequitiesorbalances,andchanges therein.Fundsaresegregatedforthepurposeofcarryingonspecificactivitiesorattainingcertain 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. A CAPITALEXPENDITURE occurswhenacapitalassetispurchased.CAPITALASSETS areusedinoperations andhaveinitialusefullivesextendingbeyondasinglereportingperiod.Theseassetsmustalsomeet capitalizationthresholds,whichvarybyassetclassificationandtypicallycostsmorethan$10,000.Land, improvementstoland,vehicles,machinery,equipment,infrastructureandothertangibleandintangible assetsusedinoperationsareexamplesofcapitalassets.Expendituresthatdonotbenefitmorethanone reportingperiodormeetthecapitalizationthresholdsareclassifieda CURRENTEXPENDITURE. 43 MATRIXOFFUNDSANDBUDGETUNITS Allcapitalprojectfundswerecombinedforthispresentation.Parkoperationsisresponsibleforthe CemeteryFund,whichisnotincludedintheMatrix.DebtService,principalandinterest,occursinthe debtservicefundsandtheSewageFund. Community Capital Park&Liquor Deputy Water&Fiber IT Central EXPENDITURES General Center EDA ProjectsPathway Store RegistrarSewage Optics ServicesEquipment GENERALGOVERNMENT MayorandCouncil ●● CityAdministration ●●●● Elections ●● Finance ●●●●●●● Audit ● CityAssessing ● Legal ● HumanResources ●● Planning&Zoning ●●●● ITServices ●●●●●●●● CityHall ●● PrairieCenterBuilding ●● EconomicDevelopment ●● PUBLICSAFETY LawEnforcement ● Fire&Rescue ●●● FireRelief ● BuildingInspections ●● CivilDefense ●● AnimalControl ● NationalGuard ● PUBLICWORKS PWAdministration ●●● Engineering ●●●● PWInspecitons ●●● Streets&Alleys ●●● Ice&Snow ● Shop&Garage ●●● Stormwater ●● ParkingLots ● StreetLighting ●● RefuseCollection ● WaterUtility ●● SewageUtility ●● RECREATIONANDCULTURE CommunityCelebrations ● SeniorCenter ● Transit ● ParkOperations ●●●● ParkImprovements ● ParkBallfields ● ShadeTree ● Library ● FiberOptics ●● CommunityCenter ●● OTHERFINANCINGUSES ●●●●●● FUND 44 OPERATINGFUNDCROSSWALK OperatingFundCrosswalk Thismatrixshowstherelationshipbetweenfunctionalunitsandfunds.Forexample,thePublicWorks DepartmenthassomeauthorizedappropriationsintheGeneralFund,fivecapitalprojectfundsandtwo enterprisefunds.PublicWorksisalsoresponsibleforthecity’sparks. ThecitycontractswithWrightCountyforlawenforcementservicesandmaintainsavolunteerFire Department.AdministrationandFinanceprovidestaffsupportforbothfunctions.Community Developmentprovidesstaffforbuildinginspections. Public Community Community OperatingFund Administration Finance Works Center Development GeneralFund x x x x SpecialRevenueFunds EconomicDevelopment x x Cemetery x MinnesotaInvestment x MonticelloCommunityCenter x DebtServiceFunds x CapitalProjectFunds CapitalProject x x x x ClosedBondFund x Park&PathwayDedication x x StormwaterAccess x StreetLightingImprovement x StreetConstruction x EnterpriseFunds Water x Sewage x Liquor x DeputyRegistrar x FiberOptics x InternalServiceFunds ITServices x CentralEquipment x AdministrationofFund 45 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. 46 BUDGETCALENDAR/PROCEDURES Thefollowingbudgettimelineoutlinestheprocessthecitycustomarilyfollowsforcreationand adoptionoftheannualbudget. Date Activity June9,2014 2015-2019capitalequipment/projects(CIP)worksheetsandbudget worksheetstodepartmentheads. June23,2014 WorkshopwithcitycouncilandstafftoSet2014/15goalsand priorities. June,2014 Departmentheadsmeetwithvariousadvisoryboardsand commissionsforinputinto2015preliminarybudgetandCIP. July11,2014 2015-2019CIPandbudgetworksheetsduetofinancedepartment July,2014 Departmentheadsmeetwithcityadministrator,andfinancestaffto develop2015preliminarybudgetandCIP. July22,2014 Councilworkshoptoreviewdraftdepartmentbudgets. August11,2014 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIP. MiddleofAugust,2014 Financedepartmentdevelopsrevenueestimatesand2015preliminary propertytaxlevy. August25,2014 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIPcontinued. September22,2014 Budgetworkshopwithcitycouncilandstaff. September22,2014 Counciladopts2015preliminarypropertytaxlevy. September30,2014 2015preliminarypropertytaxlevycertifiedtoWrightCountyauditor. October/November,2014 Departmentheadsmeetwithcityadministratorandfinancestaffto develop2015proposedBudgetandfinalpropertytaxlevy. December8,2014 Counciladopts2015budgetandpropertytaxlevy. December29,2014 Citycertifiesfinal2015propertytaxlevytoWrightCountyauditor. January1,2015 2015fiscalyearbegins. 47 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. 48 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. 49 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 50 ALLFUNDSSUMMARYBYFUNDTYPE Special Debt Capital Internal 2015 General Revenue Service Project Enterprise Service Total Fund Funds Funds Funds Funds Funds Budget FundBalance/WorkingCapital-Jan.1 3,750,068$8,672,411$3,847,556$5,501,998$8,154,112$962,057$30,888,202$ RevenuesandOtherSources PropertyTaxes 5,882,000$1,363,000$1,290,000$-$-$-$8,535,000$ TaxIncrements -726,215 ----726,215 Franchise&OtherTaxes 236,500 --80,000 --316,500 SaleofGoods ----4,973,000 -4,973,000 Licenses&Permits 321,180 ---3,700 -324,880 IntergovernmentalRevenues 299,677 --2,901,000 --3,200,677 ChargesforServices 267,261 1,416,100 -120,000 5,236,584 431,701 7,471,646 Fines&Forfeits 42,100 ----42,100 SpecialAssessments 300 769,225 209,000 30,000 -1,008,525 Miscellaneous 196,982 304,918 223,300 62,000 151,400 5,210 943,810 ContributedCapital ----140,450 -140,450 OperatingTransfersIn -94,900 2,409,836 1,569,170 450,000 -4,523,906 DebtProceeds ----3,322,000 -3,322,000 TotalRevenuesandOtherSources 7,246,000$3,905,133$4,692,361$4,941,170$14,307,134$436,911$35,528,709$ ExpendituresandOtherUses PersonnelServices 2,734,757 1,018,942 --1,846,778 -5,600,477 Supplies 575,800 262,171 --4,209,200 35,600 5,082,771 OtherServices&Charges 3,575,773 606,988 -90,000 3,060,998 232,500 7,566,259 CapitalOutlay 195,600 428,786 -5,673,000 4,277,000 299,500 10,873,886 DebtService --5,620,651 -359,698 77,760 6,058,109 OperatingTransfersOut 164,070 1,276,900 -1,500,000 1,582,936 -4,523,906 TotalExpendituresandOtherUses 7,246,000 3,593,787 5,620,651 7,263,000 15,336,610 645,360 39,705,408 NetChangein FundBalance/WorkingCapital -$311,346$(928,290)$(2,321,830)$(1,029,476)$(208,449)$(4,176,699)$ FundBalance/WorkingCapital-Dec.313,750,068$8,983,757$2,919,266$3,180,168$7,124,636$753,608$26,711,503$ AllFUNDSSUMMARY-BYFUNDTYPE Annually,thecityadoptsabalancedbudgetfortheGeneralFundandtheMonticelloCommunityCenter Fund(specialrevenuefund).Abudgetisbalancedwhenrevenuesandothersourcesequalsexpenditures andotheruses.Intheotherfunds,fundbalances/workingcapitalincreaseordecreasewithsurplusesor deficits,respectively. CapitalProjectFundscommonlyaccumulateresourcesinonebudgetperiodandexpendthoseresources overmultiplebudgetperiods. TheSewageFund,oneoffiveenterprisefunds,accountsformostofthenegativenetchangeinworking capitalasplannedtransferstodebtservicefundsoffsetthedeclineofimpactfees. Internalservicefundsprovideservicestootherfundsandtypicallyfunctiononacostrecoverybasis.The cityhastwo:ITservicesFundandCentralEquipmentFund.TheCentralEquipmentFundissueddebtand receivedanoperatingtransferin2013.Bothfundscanbeusedforcapitalassetacquisitons. 51 ALLFUNDSSUMMARY-BYYEAR TOTALALLFUNDS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 7,319,010$8,157,147$7,961,030$8,150,000$8,150,000$8,535,000$4.7% TaxIncrements 1,050,563 1,052,110 992,339 672,494 728,618 726,215 8.0% Franchise&OtherTaxes 321,584 347,934 327,667 356,500 316,500 316,500 -11.2% SaleofGoods 4,653,385 4,854,798 5,085,925 4,944,500 5,030,500 4,973,000 0.6% Licenses&Permits 258,526 276,168 332,616 276,880 364,150 324,880 17.3% IntergovernmentalRevenues 881,560 576,581 1,283,769 1,959,677 698,390 3,200,677 63.3% ChargesforServices 7,087,685 6,826,955 7,234,947 7,085,026 6,976,554 7,471,646 5.5% Fines&Forfeits 55,700 63,106 41,124 42,100 42,100 42,100 0.0% SpecialAssessments 2,009,184 2,061,191 2,110,283 1,189,675 1,728,208 1,008,525 -15.2% Miscellaneous 4,078,987 2,080,803 938,169 901,427 1,557,520 943,810 4.7% ContributedCapital ---86,070 485,000 140,450 63.2% OperatingTransfers 4,041,680 13,345,907 7,159,545 4,466,488 5,571,488 4,523,906 1.3% DebtProceeds 14,655,376 1,004,698 3,503,224 -685,000 3,322,000 --- TOTALREVENUES 46,413,240$40,647,398$36,970,638$30,130,837$32,334,028$35,528,709$17.9% EXPENDITURES PersonnelServices 5,437,475$5,482,262$5,196,072$5,351,871$5,378,170$5,600,477$4.6% Supplies 4,991,742 4,578,908 4,839,108 5,123,110 5,131,076 5,082,771 -0.8% OtherServices&Charges 8,259,739 7,667,674 7,296,756 6,623,598 7,087,363 7,566,259 14.2% CapitalOutlay 4,669,532 3,809,786 6,301,892 4,808,104 3,367,727 10,873,886 126.2% DebtService 8,280,662 7,512,964 17,787,008 6,477,193 6,385,171 6,058,109 -6.5% OperatingTransfers 5,720,851 12,906,128 7,072,045 4,466,488 5,571,488 4,523,906 1.3% TOTALEXPENDITURES 37,360,001$41,957,722$48,492,881$32,850,364$32,920,995$39,705,408$20.9% FUNDBALANCE-JANUARY1 35,254,497$44,307,736$42,997,412$31,475,169$31,475,169$30,888,202$ Excess(Deficiency)of RevenuesoverExpenditures 9,053,239 (1,310,324)(11,522,243)(2,719,527)(586,967)(4,176,699) FUNDBALANCE-DECEMBER31 44,307,736$42,997,412$31,475,169$28,755,642$30,888,202$26,711,503$ Intergovernmentalrevenueswillincreasein2015asthecityreceivesmorestateandfederalaidfor streetprojects.Specialassessmentsdeclinebecauseofprepaymentsin2014.Operatingtransfersinand outarecloseto2014budgetamounts.Nodebtissuancesareplannedfor2015butaloanfromthestate agencywillbeusedtofinancewastewaterplantimprovements.LiquorFundsaleofgoodsincreaseto moreaccuratelyreflectthegrowthtrendinsales. Capitalexpenditures(outlay)arebudgetedtoincreasesignificantlyin2015,primarilytheresultof higherexpendituresintheSewageFund(wastewatertreatmentplantupgrade)andCapitalProjectFund (TH25/CSAH75intersectionimprovements,etc.).Capitalexpendituresreflectthedisbursementoffunds foracquisitionorreplacementofassetswithlong-lives(benefittwoormoreaccountingperiods)and theyusuallyhavesignificantpricetags.Incontrast,currentexpendituresonlybenefitthecurrentornext accountingperiodandusuallyhavemuchsmallerpricetags. Capitalexpenditurescanberecurringornon-recurringinnature.Thewastewatertreatmentplant upgradewouldbeanexampleofnon-recurringcapitalexpenditure.Ontheotherhand,thecitybudgets annually$200,000-$500,000toreplacestreets,usuallythroughtheStreetReconstructionFund.This wouldbeanexampleofarecurringcapitalexpenditure.Recurringcapitalexpendituresusuallyhavea pay-as-you-gofundingsource(enterprisefunds)andnon-recurringcapitalexpendituresusuallyhave debtasafundingcomponent. 52 CHANGESINFUNDBALANCE/WORKINGCAPITAL ProjectedBeginning ProjectedEnding FundBalance/Estimated FundBalance/ WorkingCapital Revenues Appropriations WorkingCapital GeneralFund 3,750,068$7,246,000$7,246,000$3,750,068$ SpecialRevenueFunds EconomicDevelopment 7,333,810 1,046,475 755,114 7,625,171 Cemetery 12,145 25,608 30,623 7,130 MinnesotaInvestment 1,076,218 25,000 -1,101,218 MonticelloCommunityCenter 250,238 2,808,050 2,808,050 250,238 TotalSpecialRevenueFunds 8,672,411 3,905,133 3,593,787 8,983,757 DebtServiceFunds 2007AG.O.ImprovementBond 546,696 536,114 621,800 461,010 2008AG.O.RevenueRefunding 1,237 1,005,500 1,001,260 5,477 2008BG.O.SewerRefunding 856,355 845,000 1,048,942 652,413 2010AG.O.ImprovementBond 556,058 213,009 302,899 466,168 2011AG.O.RefundingBond 1,702,210 2,091,738 2,460,750 1,333,198 2014AG.O.JudgmentBonds 185,000 1,000 185,000 1,000 TotalDebtServiceFunds 3,847,556 4,692,361 5,620,651 2,919,266 CapitalProjectFunds CapitalProject 425,583 4,470,170 4,821,000 74,753 ClosedBondFund 997,323 214,000 -1,211,323 Park&PathwayDedication 754,822 72,000 817,000 9,822 StormwaterAccess 825,881 70,000 -895,881 StreetLightingImprovement 807,284 90,000 125,000 772,284 StreetConstruction 1,691,105 25,000 1,500,000 216,105 TotalCapitalProjectFunds 5,501,998 4,941,170 7,263,000 3,180,168 EnterpriseFunds Water 4,508,546 1,331,500 1,645,811 4,194,235 Sewage 2,872,118 5,494,950 6,191,555 2,175,513 Liquor 504,583 4,978,000 5,054,859 427,724 DeputyRegistrar 188,920 401,100 343,429 246,591 FiberOptics 79,945 2,101,584 2,100,956 80,573 TotalEnterpriseFunds 8,154,112 14,307,134 15,336,610 7,124,636 InternalServiceFunds ITServices 22,059 278,201 278,100 22,160 CentralEquipment 939,998 158,710 367,260 731,448 TotalInternalServiceFunds 962,057 436,911 645,360 753,608 TotalAllFunds 30,888,202$35,528,709$39,705,408$26,711,503$ FiscalYear2015 CHANGESINFUNDBALANCE/WORKINGCAPITAL Thefundbalances/workingcapitalofallthecity’smajorfunds(GeneralFund,allenterprisefunds-except theDeputyRegistrar,andspecialrevenuefundsforthecommunitycenterandtheeconomic developmentauthority)areexpectedtoremainstablewithbalancedbudgets(revenuesequal expenditures).However,drawsonreservesforbothdebtamortizationinthedebtservicefundsandfor capitalprojectsintheSewageFundwilldecreasefundbalances.AtransferfromtheStreet ReconstructionFundtotheCapitalProjectFundforimprovementswillfurtherdepletereserves. 53 FUNDBALANCEHISTORY Amended Adopted Actual Actual Actual Budget Projected Budget 2011 2012 2013 2014 2014 2015 GeneralFund 5,001,093$3,478,507$3,914,563$3,914,563$3,750,068$3,750,068$ SpecialRevenueFunds EconomicDevelopment 7,478,651 7,461,554 7,055,052 7,302,003 7,333,810 7,625,171 Cemetery 21,276 19,353 15,709 12,145 12,145 7,130 MinnesotaInvestment 1,022,470 1,066,058 1,051,218 1,076,218 1,076,218 1,101,218 MonticelloCommunityCenter 978,008 179,500 271,204 271,204 250,238 250,238 TotalSpecialRevenueFunds 9,500,405 8,726,465 8,393,183 8,661,570 8,672,411 8,983,757 DebtServiceFunds 2007AG.O.ImprovementBond 216,886 316,936 260,902 186,824 546,696 461,010 2008AG.O.RevenueRefunding 408,315 199,422 (1,403)1,237 1,237 5,477 2008BG.O.SewerRefunding 722,832 660,704 550,948 456,355 856,355 652,413 2010AG.O.ImprovementBond 517,835 630,122 619,760 556,058 556,058 466,168 2011AG.O.RefundingBond(2005A)11,260,379 11,145,710 1,317,306 1,210,749 1,702,210 1,333,198 2014AG.O.JudgmentBonds 185,000 1,000 TotalDebtServiceFunds 13,126,247 12,952,894 2,747,513 2,411,223 3,847,556 2,919,266 CapitalProjectFunds CapitalProject (1,362,621)795,453 303,583 188,583 425,583 74,753 ClosedBondFund 514,117 1,116,150 1,373,823 1,167,323 997,323 1,211,323 Park&PathwayDedication (141,890)442,754 973,433 978,433 754,822 9,822 SanitarySewerAccess (Closed)3,135,749 1,866,876 ---- StormwaterAccess 1,803,383 1,468,743 1,122,181 825,881 825,881 895,881 WaterAccess (Closed)229,249 22,910 ---- StreetLightingImprovement 965,618 716,387 792,284 847,284 807,284 772,284 StreetConstruction 3,330,897 1,907,379 1,666,105 1,291,105 1,691,105 216,105 CapitalOutlayRevolving (Closed)1,055,438 720,307 ---- TotalCapitalProjectFunds 9,529,940 9,056,959 6,231,409 5,298,609 5,501,998 3,180,168 EnterpriseFunds Water 3,910,484 4,608,692 4,567,498 4,510,666 4,508,546 4,194,235 Sewage 2,742,706 3,189,214 3,767,385 2,769,771 2,872,118 2,175,513 Liquor 3,570,876 649,665 667,538 623,583 504,583 427,724 DeputyRegistrar 250,624 110,764 188,453 188,920 188,920 246,591 FiberOptics (3,324,639)224,252 77,057 77,057 79,945 80,573 TotalEnterpriseFunds 7,150,051 8,782,587 9,267,931 8,169,997 8,154,112 7,124,636 InternalServiceFunds ITServices --21,962 22,059 22,059 22,160 CentralEquipment --898,608 277,621 939,998 731,448 TotalInternalServiceFunds --920,570 299,680 962,057 753,608 TotalAllFunds 44,307,736$42,997,412$31,475,169$28,755,642$30,888,202$26,711,503$ FUNDBALANCE/WORKINGCAPITALHISTORY FiscalYearEndedDecember31, 54 TAXLEVY&TAXCAPACITYHISTORY 2011 2012 2013 2014 2015 GeneralFund 5,407,872$5,451,248$5,540,000$5,497,000$5,882,000$ PercentChange -0.3%0.8%1.6%-0.8%7.0% SpecialRevenueFunds MonticelloCommunityCenter*1,100,000 1,150,000 1,170,000 1,390,000 $1,363,000 TotalSpecialRevenueFunds 1,100,000 1,150,000 1,170,000 1,390,000 1,363,000 PercentChange 0.7%4.5%1.7%18.8%-1.9% DebtServiceFunds 2011AGORefundingBonds(2005A)244,131 251,906 245,000 223,000 330,000 2007AGOImprovementBond 418,306 416,846 425,000 540,000 420,000 2008BGOSewerRefunding 430,000 500,000 500,000 500,000 500,000 2010AGOImprovementBond 52,000 50,000 20,000 -40,000 TotalDebtServiceFunds**1,144,437 1,218,752 1,190,000 1,263,000 1,290,000 PercentChange -7.3%6.5%-2.4%6.1%2.1% CapitalProjectFunds StreetConstruction 25,000 25,000 -- TotalCapitalProjectFunds 25,000 25,000 --- PercentChange 0.0%-100.0%------ TotalAllFunds 7,677,309$7,845,000$7,900,000$8,150,000$8,535,000$ PercentChange -1.3%2.2%0.7%3.2%4.7% *MCClevyfordebt 815,000$890,000$890,000$1,040,000$$1,005,000 **TotaldebtlevywithMCCdebt 1,959,437$2,108,752$2,080,000$2,303,000$2,295,000$ PercentChange 27.6%7.6%-1.4%10.7%-0.3% 2011 2012 2013 2014 2015 TaxCapacity 16,429,431$15,771,688$18,692,762$18,289,491$23,887,018$ PercentChange -1.6%-4.0%18.5%-2.2%30.6% TaxCapacityRate 46.729 49.773 42.262 44.672 35.731 PercentChange 2.0%6.5%-15.1%5.7%-20.0% TAXLEVYANDTAXCAPACITYHISTORY TAXLEVYHISTORY TAXCAPACITYHISTORY 55 REVENUESOURCESBYFUND Revenue Classifications Revenue Classifications Property Franchise Tax Licenses/ Intergovern- Charges for Fines & Special Miscell- Sale of Debt Contributed Operating Taxes & Other Increments Permits mental Services Forfiets Assess aneous Goods Proceeds Capital Transfers Total General Fund 5,882,000 $ 236,500 $ - $ 321,180 $ 299,677 $ 267,261 $ 42,100 $ 300 $ 196,982 $ - $ - $ - $ - $ 7,246,000 $ Special Revenue Funds Economic Development - - 726,215 - - - - - 225,360 - - - 94,900 1,046,475 Deputy Registrar - - - - - 400,100 - - 1,000 - - - - 401,100 Minnesota Investment - - - - - - - - 25,000 - - - - 25,000 Monticello Community Center 1,363,000 - - - - 1,391,300 - - 53,750 - - - - 2,808,050 Park & Pathway Dedication - - - - - 70,000 - - 2,000 - - - - 72,000 Total Special Revenue Funds 1,363,000 - 726,215 - - 1,861,400 - - 307,110 - - 94,900 4,352,625 Debt Service Funds 2007AG.O. Improvement Bond 420,000 - - - - - - 116,114 - - - - - 536,114 2008AG.O. Sewer Refunding 500,000 - - - - - - - 5,000 - - - 340,000 845,000 2008AG.O. Revenue Refunding - - - - - - - - 500 - - - 1,005,000 1,005,500 2010AG.O. Improvement Bond 40,000 - - - - - - 55,073 - - - - 117,936 213,009 2011AG.O. Refunding Bond $330,000 - - - - - - 598,038 216,800 - - - 946,900 2,091,738 Total Debt Service Funds 1,290,000 - - - - - - 769,225 222,300 - - 2,409,836 4,691,361 Capital Project Funds Capital Project - - - - 2,901,000 - - - - - - - 1,569,170 4,470,170 Closed Bond Fund - - - - - - - 209,000 5,000 - - - - 214,000 Stormwater Access - - - - - 50,000 - - 20,000 - - - - 70,000 Street Lighting Improvement - 80,000 - - - - - - 10,000 - - - - 90,000 Street Construction - - - - - - - - 25,000 - - - - 25,000 Total Capital Project Funds - 80,000 - - 2,901,000 50,000 - 209,000 60,000 - - - 1,569,170 4,869,170 Enterprise Funds Water - - - 3,700 - 1,146,800 - 30,000 71,000 - - 80,000 - 1,331,500 Sewage - - - - - 2,050,500 - - 62,000 - 3,322,000 60,450 - 5,494,950 Liquor - - - - - - - - 5,000 4,973,000 - - - 4,978,000 Cemetery - - - - - 24,800 - - 808 - - - - 25,608 Fiber Optics - - - - - 1,639,184 - - 12,400 - - - 450,000 2,101,584 Total Enterprise Funds - - - 3,700 - 4,861,284 - 30,000 151,208 4,973,000 3,322,000 140,450 450,000 13,931,642 Internal Service Funds ITServices - - - - - 278,101 - - 100 - - - - 278,201 Central Equipment - - - - - 153,600 - - 5,110 - - - - 158,710 Total Internal Service Funds - - - - - 431,701 - - 5,210 - - - - 436,911 Total All Funds 8,535,000 $ 316,500 $ 726,215 $ 324,880 $ 3,200,677 $ 7,471,646 $ 42,100 $ 1,008,525 $ 942,810 $ 4,973,000 $ 3,322,000 $ 140,450 $ 4,523,906 $ 35,527,709 $ 56 LONGRANGEFINANCIALPLANS GeneralFund CommunityCenter EDA CapitalProjects Routine Expenditures Expectedtoriseatthepace ofinflationbutmitigatedby gainsinproductivity.Some capitalexpendituresare incorporatedasroutine throughrentalchargesby internalservicefunds. Expectedtoriseatthepace ofinflation.Routinecapital expendituresaresetat $50,000peryear. Non-TIFexpendituresare expectedtoriseatthepace ofinflation. Thecityannually appropriatesforreplacement ofroadsurfacesandstreet lights.Franchisefeesprovide fundingforstreetlight improvements.Roadsurface improvementsarefundedby reserves,stateaidand tranfersfromtheLiquor Fund. Non-routine Expenditures Basiclevelofnon-routine itemsareincludedinoverall budgetbutvarywithineach budgetunitfromyear-to- year. Largerepairandmaintence itemsandtotalcapital expendituresexceeding $50,000willbesupportedby transfersfromotherfunds. 2015:$50,000gymfloor replacement. Taxincrementfinancing(TIF) expenditureswillvary considerableyfromyear-to- yearineachdistrictas developmentoccurs. Largecapitalprojectsusually receivefundingfromdebt issuance.Thecityusually coversinitialprojectcosts withreservesorother revenuesourcesand reimbursesitselfwithdebt proceeds.2015:Fallon overpass-$1.2Mand TH25/CSAH75-$450,000. 2016:Fallonoverpass- $4.3MandTH25/CSAH75- $1.7M.2016:streetsArea5- $3.6M.2017:streetsArea6- $900K. Revenues Propertytaxesprovideover 80%oftherevenuefor GeneralFund.Consequently, spendingisconstrainedby growthinthetaxlevy.The cityhasresisteddeveloping otherrevenuesourcessuch asfeesforresidentialrefuse collectionorstormwater. Withthelastpaymenton communitycenterdebt servicecomingin2015,the propertytaxlevyforthis debtwilldeclineby$1Min 2016. Taxincrementrevenues widelyvaryfromdistrictto districtbutnotmuchfrom year-to-year.Oftenreserves, accumulationofprioryear increments,areusedtofund projects.Transfersfromthe GeneralFund In2015,theFallonOverpass andTH25/CSAH75 expenditureswillbe supportedbystateaid.The cityplanstoreimburseitself withtaxabatementorstreet reconstructionbondsin2015 or2016.Thecitywillprovide temporaryfinancingfromits StreetReconstructionFund. Debt None:Indirectlysupports CentralEquipmentFunddebt servicethroughannualrental payments. Nodebtissuesare anticipatedovernextfive years.Further,debtfor recreationalprojectseither requiresvoterapprovalor mustbeincurredaspartofa lease-purchaseagreement withtheEDA. IntrafundloansfromtheEDA GeneralFundsub-fundwill financesomeTIFactivities. Noexternaldebtissuanceis planned. 2015or2016:$1.2street reconstruction/improvement bondsand$6.5millionintax abatementbonds.Thedebt serviceforthesebondswill bestructuredtotake advantageofthedeclinein othertaxsupporteddebt. 57 Water Sewage Liquor FiberOptics CentralEquipment 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 scheduleiscontainedin theInternalService sectionofthisreport.All expendituresinthisfund areeitherforcapital equipmentpurchasesor debtservice. 2016:$126,00090th StreettoChelseawater main.2017:$130,000 boosterstationupgrades. Becausewateraccess (impact)feeshave declinedwith development,transfersto debtservicefunds,with waterimprovement components,willcontinue forseveralyears. 2016:$1.7million phosphorusreduction project$900thousandfor digestercover replacementBecause seweraccessfeeshave declinedwith development,transfersto debtservicefunds,with sewerimprovement components,willcontinue forseveralyears.2018:$4 millionfortreatment plantimprovements. 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. Anticipatedfuture expenditurebyyear: 2015:$289,000; 2016:$631,200; 2017:$546,000; 2018:$722,000; 2019:$1,415,000. 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. 2015:$450,000transfer fromtheLiquorFund. 2016-2017:transfersfrom LiquorFundcoulddecline to$200,000orlesswith operationalchanges. Rentalrevenues (expendituresinother fundsandbudgetunits) willrisewithequipment purchases.Therefore, revenuesourcesinother fundsbecometherevenue sourceforthisinternal servicefund. Nodebtissuesare anticipatedovernextfive years. TheMinnesotaPublic FacilitiesAuthoritywill providelowinterest financingforthe phosphorusreduction projectanddigestercover replacement.ThePFAwill likelyprovidefundingfor the2018projects. Nodebtissuesare anticipatedovernextfive years. Aresolutionwasreached withtelecommunications bondholders,thecity issued$6millionin settlementbondsin2014. Taxsupporteddebt servicewilloccuronthe bondins2016.Thedebt serviceamortization scheduletakesadvantage ofthedeclineinothertax supporteddebt. Thefundisexpectedto becomeself-sustaining. Thecityissued$515,000 inbondstofinancefuture purchaseofaplowtruck andthe2014purchaseof afiretender.Futuredebt issuesmaybenecessary tomakeallthe acquistionslistedinthe CIP. 58 LONGRANGEFINANCIALPLANS (continued) ThecityannuallyadoptsabalancedbudgetfortheGeneralFund.Consequently,therevenues/sourceslineand theexpenditures/useslinewilloverlapforthe2015budgetandforfutureyearprojections.After2015,Annual expendituresareprojectedtoincreaseat2%peryear.Thepropertytaxlevyandallotherrevenuesare projectedtoincreaseatthesamerateofexpenditures/uses.In2012,theGeneralFundtransferredover$2 milliontootherfundstoeliminateinterfundreceivables. $- $2 $4 $6 $8 $10 2011201220132014201520162017201820192020 Milli ons GeneralFund2011-2020 FundBalance Revenues/Sources Expenditures/Uses LiketheGeneralFund,theMonticelloCommunityCenterFundannuallyadoptsabalancebudget. Consequently,therevenues/sourceslineandtheexpenditures/useslinewilloverlapforthe2015budgetand forfutureyearprojections.After2015,Annualexpendituresareprojectedtoincreaseat2%peryear.In2012, thefundbalancedeclinedtoreflectcapitaloutlayexpendituresontheNatatoriumprojects.Transfersintothe fundalsosupportedtheproject.Thelastpayment($1,001,000)onpropertytaxsupporteddebtservice,related totheinitialconstructionofthecommunitycenter,occursin2015. $(1) $- $1 $2 $3 $4 $5 2011201220132014201520162017201820192020 Millions MonticelloCommunityCenter2011-2020 FundBalance Revenues/Sources Expenditures/Uses 59 TheWaterFundisthecity’smostself-sustainedutilityfund.Thefundhasnodirectdebtand adequatereservestocoveralmostanyexpenditureformajorcapitalprojects,ofwhichnoneare plannedatthistime.In2018,transferstootherdebtservicefundsforwaterrelatedimprovements cease.Thesetransferssupplementwateraccessfeeswhichallbutdriedupasaresultofslower commercialandresidentialdevelopment.Theincreasein2013expendituresincludeswater improvementsalong7th Streetandtheaforementionedtransfers. $- $1 $2 $3 $4 $5 2011201220132014201520162017201820192020 Millions WaterFund2011-2020 WorkingCapital Revenues/Sources Expenditures/Uses UnliketheWaterFund,theSewageFundrepresentsfundingchallenges.First,sanitarysewer accessfeeshavedeclinedsignificantlywiththelackofdevelopment.Transferstootherdebtservice fundssupplementingtheseaccessfeesareexpectedtodropsignificantlyin2017andtocease altogetherin2018.Second,environmentalregulatorychangesrequirelargeinvestmentsinthe wastewatertreatmentplant.In2013,thefundincurred$3millionindebttoimprovetreatment plantcapacity.Additionally,thecityestimatesitwillincurnearly$3millionindebtforatreatment plantphosphorousreductionprojectandforreplacementoftwodigestercovers.Theincreasein 2013expendituresalsoincludestheaforementionedtransfers. $- $1 $2 $3 $4 $5 $6 $7 2011201220132014201520162017201820192020 Millions SewageFund2011-2020 WorkingCapital Revenues/Sources Expenditures/Uses 60 STAFFINGSUMMARY STAFFINGHISTORY Staffing,asmeasuredbyfull-timeequivalents,hasbeenrelativelystableforthelastfiveyears.Many employeesperformacrossmultipleactivities/divisionsandfunds.Thetablebelowdoesnotreflect thepart-timecommunitycenteremployees.Therearenosignificantchangestostaffinglevels plannedfor2015. Amended Adopted Actual Actual Actual BudgetProjectedBudget 2011 2012 2013 2014 2014 2015 GeneralFund CityAdministration 1.85 1.85 1.85 2.18 2.18 2.18 Finance 4.00 4.00 4.00 3.88 3.88 3.88 ITServices 0.35 0.35 0.35 0.35 0.35 0.35 HumanResources 1.00 1.00 1.00 1.00 1.00 1.00 Planning&Zoning 1.30 1.30 1.30 1.30 1.30 1.30 CityHall 1.40 1.40 1.40 1.90 1.90 1.90 BuildingInspections 3.00 3.00 3.00 3.00 3.00 3.50 PublicWorksAdministration 2.50 2.50 2.50 2.00 1.40 1.40 Engineering 1.60 1.60 1.60 --- PublicWorksInspections 1.30 1.30 1.30 0.80 0.80 0.80 Shop&Garage 1.50 1.50 1.50 1.50 1.50 1.50 Streets&Alleys 10.30 10.30 10.30 10.05 10.05 10.05 Ice&Snow 2.20 2.20 2.20 1.70 1.70 1.70 ParkOperations 6.85 6.85 6.85 7.10 7.10 7.10 ShadeTree 0.40 0.40 0.40 0.50 0.50 0.50 EconomicDevelopment 0.70 0.70 ---- TotalGeneralFund 40.25 40.25 39.55 37.26 36.66 37.15 SpecialRevenueFunds EconomicDevelopment 0.30 0.30 0.20 0.20 0.20 0.20 DeputyRegistrar 6.00 6.00 6.00 6.10 6.10 6.10 MonticelloCommunityCenter 8.40 8.40 8.40 8.40 8.40 8.40 TotalSpecialRevenueFunds 14.70 14.70 14.60 14.70 14.70 14.70 EnterpriseFunds Water 3.15 3.15 3.15 3.15 3.15 3.60 Sewage 3.15 3.15 3.15 3.15 3.15 3.55 Liquor 10.00 10.00 10.00 10.00 10.00 10.10 FiberOptics 7.45 7.45 7.45 7.45 8.95 9.95 TotalEnterpriseFunds 23.75 23.75 23.75 23.75 25.25 27.20 TotalAllFunds 78.70 78.70 77.90 75.71 76.61 79.05 NUMBEROFFULL-TIMEEQUIVALENTS FiscalYearEndedDecember31, 61 CAPITALINVESTMENTSANDOPERATINGBUDGETS Capitalinvestments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating budgets.Forexample,capitalinvestmentsreplacingagingequipmentcanreduceannualrepairsand maintenanceexpendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare impactedintwoways:thecostofthepeoplerepairingtheequipmentandthelossofproductivity.In2013,the cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundwillpurchaseequipmentandleaseitbacktothebenefitingbudgetunits.Thelease paymentsassurethatequipmentpurchaseswillreceiveannualfunding,gettingthesamepriorityasother operatingexpenditures.Lastly,newequipmentmaybemoreproductiveandlessexpensivetooperate. Anothertypeofcapitalinvestmentincludesbetterments,whichareimprovementsthatprolonganasset’slifeor increaseitsefficiencyorcapacity.Agreatexample,thecommunitycenterreplacedtheroofovertheaquatics portionofthebuilding,loweringannualenergycosts.Still,thesavingscanbeelusivewhentheenergyproviders consistentlyraisetheirprices. Thecityannuallybudgetsforreplacementofwaterandsewagemainsthrougheach’srespectiveenterprise fund.Forpublicutilities,customersatisfactionisdifficulttoquantifyindollars.However,agenerallysatisfied customermaybelesslikelytocomplainabouttherateincreasesneededtosupportthoseservices.Annually, thecitybudgetsmoreforwaterandsewermainreplacementthanitdoesforrepairsandmaintenance. Finally,nearly70milesinlength,thestreetsystemisthecity’slargestcapitalasset.In2014,thecityincreased thesealcoatbudgetforroadstoover$160,000.Additionally,thecityannuallybudgetsover$200,000fora moredurablemillandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. 62 CAPITALINVESTMENTSANDOPERATINGBUDGETS Department-OperatingFund Fund Amount Year Amount Comment PublicWorks-GeneralFund Speedtrailer CentralEquip.12,500$2015 2,360$CEleaseandR&M(+/-) Mid-sizetractor CentralEquip.95,000$2015 9,200$CEleaseandR&M(+/-) Blacktoproller CentralEquip.30,000$2015 5,200$CEleaseandR&M(+/-) FallonAvenueoverpass CapitalProject 6,000,000$2016 5,250$R&M TH25/CSAH75improvements CapitalProject 1,992,900$2015 4,275$R&M TH25/85thsignalandturnlanes CapitalProject 303,100$2016 1,525$R&M,electricity Overlayruraloutlyingstreets CapitalProject 750,000$2016 3,150$R&M StreetreconstructioninArea5 CapitalProject 3,740,000$2016 (15,000)$R&M SchoolBoulevard-CedarSt.signal CapitalProject 500,000$2016 1,525$R&M,electricity SchoolBoulevardOverlayandTrail CapitalProject 550,000$2016 4,275$R&M Oakwoodsidewalk CapitalProject 50,000$2015 450$R&M RecreationCulture-GeneralFund HuntersCrossingparkdevelopment Park&Pathway 85,000$2015 9,000$R&M BertramLakeslandacquisition Park&Pathway 552,000$2015 -$Untildeveloped HuntersCrossingpathway Park&Pathway 85,000$2015 1,125$R&M LandPrideoverseeder CentralEquip.12,000$2015 6,050$CEleaseandR&M(+/-) Cushmantruckster CentralEquip.35,000$2015 5,800$CEleaseandR&M(+/-) Pickup1/2ton CentralEquip.25,000$2015 4,200$CEleaseandR&M(+/-) Recreation-CommunityCenter Gymfloorreplacement CommunityCtr.50,000$2015 -$Noimpactonexpenses Securitycameraupgrade CommunityCtr.12,000$2015 -$Noimpactonexpenses Plexiglassaddition CommunityCtr.10,000$2015 500$R&M-electricitysavings Supplementalairconditioner CommunityCtr.10,000$2015 3,000$ElectricityandR&M PublicWorks-SewageFund WWTPphosphorousreductionprojectSewage 1,672,000$2017 75,000$Chemicals Digestercoverreplacement Sewage 900,000$2016 (15,000)$R&M Sludgetankconversiontodigester Sewage 750,000$2017 -$Offsetbyotherdigesters PickupTruck1/2 Sewage 30,000$2016 1,850$Gas,R&Mandinsurance PublicWorks-WaterFund Meterupgrades Water 65,000$2015 (5,600)$Reducemanualreading PickupTruck1/2 Water 30,000$2015 1,850$Gas,R&M,insurance LiquorFund Counterandcheckouts Liquor 50,000$2015 -$Noimpactonexpenses Parkinglotimprovements Liquor 75,000$2015 (600)$R&M Investment AnnualImpacton OperatingExpense CentralEquipmentFund(CE)leasesaresetatratestorecoverdepreciationplusinflation.Thelease amountsdonotincludeoperatingcostssuchasrepairsandmaintenance(R&M),gas,orinsurance. Theseexpensesarebornebybenefitingfundandbudgetunit.Generally,R&Mexpensesonold equipmentaregenerallyhigherthanthatofnewerequipment.Lessworkisdoneonequipment thatisscheduledforreplacement.R&Mexpensesforroadsincludeestimatesforsnowremoval, boulevardmaintenance,streetsweeping,cracksealingandstriping.Listedamountsarefor expensesinexcessofthosealreadybeingincurred.Inreality,someoftheseamountsmayormay notbeclosetothoseactuallyrealized. 63 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:ThecityisexpectedtoissueG.O.bondstoreimburseitselfforvarious streetimprovementsinlate2015orinearly-to-mid2016.Iftheissueoccursin2016,otherprojectswillbe includedwiththesale,increasingtheissue’ssize.The2015reimbursementamountiscurrentlyestimatedat $2,000,000.Thecitywillalsoborrowapproximately$3,000,000fromtheMinnesotaPublicFacilitiesAuthority forwastewatertreatmentplantimprovements.AportionofthePFAloanmaybeoffsetbygrants. BondRatings:Thecity’sgeneralobligationbondratingwasupdatedinOctober2014withthesaleofthe judgmentbonds.Moody’saffirmedthecity’spriorG.O.debtratingof“A2”anditsleaserevenue(community center)debtof“A3”.Bothratingsareinthe“uppermediumgrade”.Thisisgenerallydescribedas“strong, investmentgrade”creditbyMoody’s. Marketvalue(payable2015)1,285,755,500$ Debtlimit(3%ofmarketvalue)38,572,665$ Debtapplicabletolimit Othergeneralobligationbonds 7,372,000 Lessgeneralobligationbonds notsubjecttothelimit (3,892,000)$ Totalnetdebtapplicabletolimit 3,480,000$ Legaldebtmargin 35,092,665$ LegalDebtMarginCalculationforFiscalYear2015 64 BONDRATINGSCALES Monticello’sMoody’srating:G.O.Debt–A2,LeaseRevenueDebt–A3 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 65 DEBTSERVICELEVYHISTORY Mostofthecity’sdebtissuesaresupportedonsomelevelbypropertytaxes.Additionally,asliver ofthe2008Sewerbondsandthe2013BWastewaterTreatmentBondsaresupporteddirectly withSewageFundrevenues.Thecommunitycenter’sspecialrevenuefundisaconduitfortaxes leviedtosupportthe2008MCC(MonticelloCommunityCenter)bonds.In2014,thecityissued $6,595,000ingeneralobligationbonds.Thisdualpurposeissuehadtwoportions:judgment- $6,080,000andcapitalequipment-$515,000.Thecapitalequipmentdebtiscarriedinaninternal servicefund;leasepaymentsfromtheGeneralFundwillprovidemoneyforthedebtservice. Year2010AImp.2011AImp 2007AImp.2008Sewer2008AMCC 2014AJ&E Total 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 40,000 330,000 420,000 500,000 1,005,000 -2,295,000 2016 25,000 207,000 420,000 500,000 -541,000 1,693,000 2017 25,000 206,000 420,000 500,000 -537,000 1,688,000 2018 25,000 215,000 420,000 500,000 -538,000 1,698,000 2019 25,000 185,000 ---537,000 747,000 2020 25,000 185,000 ---536,000 746,000 2021 25,000 183,000 ---538,000 746,000 2022 25,000 187,000 ---538,000 750,000 2023 -185,000 ---538,000 723,000 2024 -----536,000 536,000 2025 -----539,000 539,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 201120122013201420152016201720182019202020212022202320242025 DebtServiceLevy(2011-2025) 2010AImp.2011AImp 2007AImp.2008Sewer 2008AMCC 2014AJ&E 66 G.O.DEBTSERVICE Currentgeneralobligation(G.O)debtwillseerapidamortizationoverthenextfouryears(2015- 18),withthebiggestdeclineoccurringin2015.OtherG.O.bondsrepresentamountspaidon multipleretireddebtissues.In2014,thecityissued$6,595,000ingeneralobligationbonds.This dualpurposeissuehadtwoportions:judgment-$6,080,000andcapitalequipment-$515,000. YearOtherG.O.2010AImp.2011AImp.2007AImp.2008Sewer2008AMCC2013COI2013WWT2014AJ&E Total 2011293,760$200,763$3,120,481$807,000$1,049,179$1,102,080$-$-$-$6,573,263$ 2012 -459,978 3,053,238 733,200 1,048,427 1,100,880 ---6,395,723 2013 -447,725 3,011,413 734,900 1,049,782 1,074,120 58,788 --6,376,728 2014 -360,150 2,880,150 735,600 1,049,841 1,037,360 66,120 254,198 -6,383,419 2015 -302,399 2,460,250 730,400 1,049,193 1,000,760 65,760 250,598 174,406 6,033,766 2016 -304,050 2,423,950 729,300 1,048,854 -65,250 246,998 580,872 5,399,274 2017 -304,618 783,650 663,500 1,049,078 -69,590 243,398 576,821 3,690,655 2018 -299,324 779,350 663,000 1,049,163 -68,713 244,798 576,759 3,681,107 2019 -298,355 428,350 ---67,673 241,098 575,608 1,611,084 2020 -301,653 430,650 ---71,470 242,398 572,931 1,619,102 2021 -304,050 425,825 ----243,598 578,691 1,552,164 2022 --428,750 ----244,406 577,816 1,250,972 2023 --426,300 ----244,706 575,578 1,246,584 2024 -------244,376 572,384 816,760 2025 -------243,600 513,200 756,800 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 201120122013201420152016201720182019202020212022202320242025 G.O.DebtServicePaid/Due(2011-2025) OtherG.O.2010AImp.2011AImp.2007AImp.2008Sewer 2008AMCC 2013COI 2013WWT 2014AJ&E 67 G.O.DEBTLEVELS Currentgeneralobligation(G.O)debtlevelsarepoisedtodeclinedrapidlyoverthenextfour years,largelytheresultoftheamortizationof2011A(2005Aredeemed)refundingimprovement bondissue.Therapidamortizationofdebtreflectsanopportunityforfinancingnewprojects includedinthecapitalimprovementprogram(CIP).Theschedulebelowreflectstherefinancing of2005Aimprovementbondswith2011Abonds—thetwoarecombinedontheschedulelessthe redemptionbondpayment. Year2010AImp.2011AImp.2007AImp.2008Sewer2008AMCC2013COI2013WWT2014AJ&EOutstanding 20113,095,000$15,705,000$4,365,000$6,486,000$3,960,000$-$-$-$33,611,000$ 20122,680,000 13,255,000 3,795,000 5,651,000 2,970,000 ---28,351,000 20132,275,000 10,735,000 3,200,000 4,786,000 1,975,000 445,000 3,000,000 -26,416,000 20141,955,000 8,055,000 2,580,000 3,892,000 985,000 385,000 2,820,000 6,595,000 27,267,000 20151,690,000 5,745,000 1,940,000 2,968,000 -325,000 2,640,000 6,595,000 21,903,000 20161,420,000 3,425,000 1,275,000 2,012,000 -265,000 2,460,000 6,190,000 17,047,000 20171,145,000 2,715,000 650,000 1,023,000 -200,000 2,280,000 5,785,000 13,798,000 2018 870,000 1,995,000 ---135,000 2,095,000 5,375,000 10,470,000 2019 590,000 1,615,000 ---70,000 1,910,000 4,960,000 9,145,000 2020 300,000 1,225,000 ----1,720,000 4,540,000 7,785,000 2021 -830,000 ----1,525,000 4,105,000 6,460,000 2022 -420,000 ----1,325,000 3,660,000 5,405,000 2023 ------1,120,000 3,205,000 4,325,000 2024 ------910,000 2,740,000 3,650,000 2025 695,000 2,320,000 3,015,000 $- $5 $10 $15 $20 $25 $30 $35 $40 20112012201320142015201620172018201920202021202220232024 M il l io n s G.O.DebtOutstanding(2011-2025) 2010AImp.2011AImp.2007AImp.2008Sewer 2008AMCC 2013COI 2014AJ&E 68 INTERFUNDTRANSFERS INTERFUNDTRANSFERS Operatingtransferssupporttheoperationsofotherfunds,provideforspecialprojects,and contributetodebtservicepayments.Thefollowingscheduleprovidestheoperatingtransfersinthe 2015Budget. FundNo.TransferInFund Amount FundNo.TransferOutFund Amount 212EconomicDevelopment 94,900$101GeneralFund 94,900$ 400CapitalProjectsFund 1,569,170 406StreetReconstruction 1,500,000 101GeneralFund 69,170 3122011AGOImprovementBond 946,900 212EconomicDevelopment 271,900 602Sewage 175,000 601Water 500,000 3152008AGOSewerRevenueBond 340,000 602Sewage 340,000 3142008AGORevenueBond 1,005,000 226MonticelloCommunityCenter 1,005,000 3172010AGOImprovementBond 117,936 602Sewage 84,672 601Water 33,264 655FiberOptics 450,000 609Liquor 450,000 TotalTransfersIn 4,523,906$TotalTransfersOut 4,523,906$ SCHEDULEOFOPERATINGTRANSFERS 69 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. 70 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. 71 Citystaffisencouragedtoidentifyworkpracticeissuesthatareinefficientoroverly bureaucratic.Themanagementteamiscommittedtoinvolvingtheiremployeesandfosteringan environmentthatchallengesthestatusquoofcityoperations. 9.Continuouslyreviewingopportunitiestoforpartnershipswithneighboringcommunitiesto shareservicesandequipment,jointlypurchaseequipmentanddevelopstrategiestodealwith localissuesusingaregionalapproach. Thecityhasestablishedseveralequipmentandservicedeliverysharingarrangementswith neighboringcommunitiesandhasseveraljointpowersagreementsinplaceonavarietyoflocaland regionalissuesintheareaofpublicsafetyandpublicworksinitiatives. 72 REVENUETRENDS&ANALYSIS Revenuesareestimatedforeveryfundofthecityeachyear.Thissummaryofrevenueestimatesis supportedbydetailedrevenueestimatesforeachfundinlatersections.Thissectionofthebudget highlightsmajorrevenuesourcesforallthecityfundsascombinedandforeachmajorgovernmental andenterprisefund:theGeneralFundandMonticelloCommunityCentergovernmentalfunds,along withtheWater,Sewage,Liquor,DeputyRegistrarandFiberOpticsenterprisefunds.Trendsofthese fundsandindividualrevenuesareshowntogetherwithestimatesforthecomingyear. TOTALCITYREVENUESANDOTHERSOURCES 2011 2012 2013 2014 2014 2015 % TOTALALLFUNDS ACTUAL ACTUAL ACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes 7,319,010$8,157,147$7,961,030$8,150,000$8,150,000$8,535,000$4.7% TaxIncrements 1,050,563 1,052,110 992,339 672,494 728,618 726,215 8.0% Franchise&OtherTaxes 321,584 347,934 327,667 356,500 316,500 316,500 -11.2% SaleofGoods 4,653,385 4,854,798 5,085,925 4,944,500 5,030,500 4,973,000 0.6% Licenses&Permits 258,526 276,168 332,616 276,880 364,150 324,880 17.3% IntergovernmentalRevenues 881,560 576,581 1,283,769 1,959,677 698,390 3,200,677 63.3% ChargesforServices 7,087,685 6,826,955 7,234,947 7,083,926 6,976,554 7,471,646 5.5% Fines&Forfeits 55,700 63,106 41,124 42,100 42,100 42,100 0.0% SpecialAssessments 2,009,184 2,061,191 2,110,283 1,189,675 1,728,208 1,008,525 -15.2% Miscellaneous 4,078,987 2,080,803 938,169 901,427 1,557,520 943,810 4.7% ContributedCapital ---86,070 485,000 140,450 63.2% OperatingTransfers 4,041,680 13,345,907 7,159,545 4,466,488 5,571,488 4,523,906 1.3% DebtProceeds 14,655,376 1,004,698 3,503,224 -685,000 3,322,000 --- TOTALREVENUES 46,413,240$40,647,398$36,970,638$30,129,737$32,334,028$35,528,709$17.9% Propertytaxesaccountforthesinglelargestrevenuesourceforthecity.Othersourcessuchas operatingtransfers(in)anddebtproceedsoccasionallysurpasspropertytaxes,buttheygenerally donotsupportday-to-dayoperations. TaxIncrementsarethemainsourceofrevenuefortheEconomicDevelopmentFund.Thisfund accountsforthecity’staxincrementfinancing(TIF)districtsandothergeneraleconomic developmentactivities.NoTIFdistrictsweredecertifiedin2014. Licenses&permitsarecomprisedprimarilyofbuildingpermits,whichareexpectedtobeeven with2013actualrevenue. Intergovernmentalrevenuesareexpectedtoincreasewithstateaidforcapitalprojectsrelatedto theTH25/CSAH75intersectionimprovements,FallonAvenueoverpassdesign/constructionand theSchoolBoulevardmillandoverlay.Withastrongcommercialtaxbase,thecitygenerallydoes notqualifyformuchstateaidthatisnotprojectspecific. Specialassessmentsprimarilysupportdebtservicefunds.Twoparcelswithlargeassessmentsare expectedtobedelinquentinthecurrentandfutureyears. 73 Chargesforservicesdonotreflectchangestothefeescheduleoccurringafteradoptionofthe budget.Thecityusesconservativerevenuebudgetingpracticestoensurerevenueswillbe sufficienttomeetoperatingneeds. Miscellaneousrevenuesareestimatedtoincreaseatlessthan5%.Investmentearningsarethe largestportionofthisrevenueclassification.Theamountofinvestiblefundsisexpectedtobe stable.Overallrevenuesandothersourceslagexpendituresandotheruses. Operatingtransfers(In)areexpectedtodeclinewithfewerprojectstosupportwithinternal sources.In2012,thecitymadesignificantunbudgetedtransferstoreduceinterfundloan balances.In2015,operatingtransfersarelargelygoingtodebtservicefundsforannualprincipal andinterestpaymentsonbondeddebt. In2015,debtproceedsareestimatedat$3.3millionforsewagetreatmentplantimprovements. TheMinnesotaPublicFacilitiesAuthoritywillprovidethelowinterestloanfortheplantproject. Thechartbelowprovidesanoverallpictureofthecity’srevenuesandothersources. Property Taxes 24% Saleof Goods 14% Chargesfor Services 20% Operating Transfers 13% Debt 10% AllOther 19% RevenueandOtherSources (AllFunds) PROPERTYTAXES Thecityreliesonpropertytaxestosupportsuchfunctionsasgeneralgovernment,publicsafety, publicworks,recreationandculture,anddebtservice.For2015,thecounciladoptedalevyof $8.535million,whichis$385,000(4.7%)morethantheprioryear.Thetaxlevyhasrisenaheadof inflationthelasttwoyearsbuthasbeenrelativelyflatsince2008.Overthelasteightyearsthe levytrailsincreasesintheConsumerPriceIndex(CPI). 74 Thefollowingchartreflectsthechangesinthetaxlevyoverthelasttenyears: $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 2006200720082009201020112012201320142015 PropertyTaxLevyHistory Accountingforavarietyofactivities,theGeneralFundwillreceivelessthan70%ofthe2015 propertytaxlevy.Indeed,propertytaxesprovideapproximately81%oftheGeneralFund’s revenue.ThelevyfortheMonticelloCommunityCenterhastwocomponents:operationsand debtservice.Theoperationscomponentis$358,000andthedebtservicecomponentis $1,005,000,ortogether$1,363,000.Thefollowingchartrepresentsthedistributionofthetaxlevy for2015. GeneralFund, $5,882,000, 69% MCC Operations, 358,000,4% DebtService*, 2,295,000,27% PropertyTaxLevy(Adopted-2015) *Note:Debtserviceincludes$1,005,000forretirementofMCCDebt 75 Whendeterminingthepropertytaxlevy,thecitycouncilandstaffconsidertheimpactthelevy willhaveonvariouspropertyowners.Thisimpactisthenbalancedagainstservicesprovidedand servicelevels.Thecitywasabletofundservicesatcurrentlevelswitharelativelyflatlevy.The growingeconomyandincreasedpropertyvaluesledtoadropinthetaxcapacityrate.However, propertyvaluesdeclinedfrom2008to2012asaresultofaweakernationalandlocaleconomy. Estimatedmarketvaluesareconvertedtotaxcapacitybyusingspecificstateformulasforvarious typesofproperties.In2013,thetaxcapacitygrewahealthy$2.9million(18.6%)to$18.7million. Why?Thenuclearpowerplantlocatedwithinthecitylimitsaddedover$160millioninnew taxablevaluewithcapitalequipmentupgrades.Consequently,equipmentretirementsrelatedto thesameupratecausedaslightdeclinein2014.Historyrepeatingitself,thetaxcapacityfor2015 grewby$5.7million(31%)to$23.9millionwithanotheruprateatthenuclearpowerplant. Inastablelevyenvironment,taxcapacityandtaxcapacityrateswilltypicallyhaveaninverse relationship.Thefollowingchartdemonstratesthatrelationshipoverthelast15years: $9.6M $23.9M67.645 35.731 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 $- $5 $10 $15 $20 $25 $30 Tax Capacity Rate Tax Capacity Value (millions) TaxCapacityValuesandTaxCapacityRates TaxCapacityValue TaxCapacityRate GENERALFUND TheGeneralFundisusedtoaccountforallfinancialresourcesofthecity,exceptforthoserequiredto beaccountedforinanotherfund.Majorfunctionssupportedbygeneralfundrevenuesinclude:city andfinanceadministration,policeandfireservices,publicworks,recreationandculture.Revenueis estimatedtobe$7,246,000(+6.5%)forthe2015budgetyear.TheprimaryGeneralFundsourceof revenueispropertytaxesat$5,882,000(+7%),whichaccountsfor81%ofthetotal.Noothersingle categoryofrevenuesexceeds5%oftotalrevenues. 76 TheGeneralFundisnotsupportedbyanytransfers(othersources)fromotherfunds.Thefollowing chartdepictsGeneralFundrevenuesasrepresentedinthe2015adoptedbudget: PropertyTaxes, 81% GeneralFundRevenues PropertyTaxes Franchise&OtherTaxes Licenses&Permits IntergovernmentalRevenues ChargesforServices AllOther GeneralFundrevenuespeakedin2008alongwithpropertytaxesandlicensesandpermits.Since 2008,licensesandpermitshavecomprisedarelativelylesssignificantportionoftheoverallrevenues. Licensesandpermitsconsistmostlyofbuilding-typepermitsandhavegreatlydeclinedalongwiththe economyandcommercialandresidentialconstruction.Peakingin2008above$1million,licenses& permitsareestimatedat$299,677for2015.ThechartbelowrepresentsGeneralFundrevenuesover thelasttenyears,with2014projectedand2015budgeted: $- $1 $2 $3 $4 $5 $6 $7 $8 $9 20052006200720082009201020112012201320142015 Millions GeneralFundRevenues PropertyTaxes Licenses&Permits AllOther 77 MONTICELLOCOMMUNITYCENTER TheMonticelloCommunityCenter(MCC)providesafacilitywithspaceforavarietyofrecreational, professional,andeducationalopportunities.Asidefromitsportionofthepropertytaxlevy,theMCC issupportedbyavarietyoffeesformemberships,activities,rental,andconcessions.Councilpasseda revenuerecoverypolicyalongwithbudgetadoptionthatnowrequirestheMCCtocover85%ofits operatingcosts—includingequipment—withfeesandcharges. Inthefollowingchart,2011through2013areactualamountsand2014and2015areestimates.The 2015budgetreflectsfurtherimplementationoftherevenuerecoverypolicy. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 UserFees Rental ActivitiesConcessions MCCMajorRevenues 2011 2012 2013 2014 2015 DEPUTYREGISTRAR(aka:DMV) ThecityisauthorizedbytheStateofMinnesotatooperateaDMV.Feescollectedfromissuanceof motorvehicleandDNRlicensesaretheDMV’smainrevenuesource.Feesareregulatedbythestate. Astateapprovedfeeincreasealongwithbettereconomicconditionshasresultedinhigherrevenues, startingin2012.Withdarkershadesofgreenrepresentinghigher(better)numbersinconditional formatting,thefollowingchartshowsthehistoryofDMVrevenuesoverafiveyearperiod. DMVRevenue Month 2010 2011 2012 2013 2014 Average Jan 21,961$21,372$37,534$39,765$40,164$32,159$ Feb 27,581 27,624 42,748 40,770 38,911 35,527 Mar 35,777 33,573 50,459 36,276 46,503 40,518 Apr 35,138 32,098 44,251 44,208 49,621 41,063 May 27,000 33,920 37,751 48,814 47,105 38,918 Jun 31,170 32,732 43,378 37,904 43,703 37,777 Jul 29,577 27,597 38,589 40,822 44,600 36,237 Aug 26,410 38,376 39,507 38,530 43,821 37,329 Sep 26,472 33,658 31,890 36,622 35,072 32,743 Oct 22,093 29,206 36,491 32,969 38,840 31,920 Nov 20,603 29,131 29,241 27,357 33,506 27,968 Dec 26,894 25,931 27,109 32,140 35,647 29,544 Total 330,677$365,217$458,948$456,178$497,493$421,703$ Transactions 55,944 58,257 62,999 62,420 67,462 58,642 78 WATERANDSEWAGEFUNDS WaterandsewagechargesforservicesareprimarilycomprisedofprovidingMonticelloresidentsand businesseswithwaterandsewageservices.Basedpartiallyonthelevelofconsumption,theseutility fundseachhaveseparatechargesfordeliveredservices.Thecitysetratestocoveroperatingcosts,a portionofdepreciation,anddebtservice.Asnewdevelopmentslowed,theburdenoninfrastructure replacementcostsshiftedtoutilityratesfromimpact(access)charges.Thewaterandsewagefunds areexpectedtoprovidesomeleveloffuturesupportfordebtserviceincurredtomakewaterand sewagesystemimprovements. Waterandsewagerevenuegrewwiththecommunityin2006and2007asconsumptionandrates 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 2006200720082009201020112012201320142015 Gallons Sold (Millions) Revenues (Millions) Water&SewageRevenue Water Revenue Sewage Revenue H2OSold (Gals) Waterservicechargeshavetwocomponents:basechargewithaminimumusageamountand consumptionchargeforusageabovetheminimumamount.Bothchargeshaveincreasedsteadily overthelastnineyears:averagebasechargeandconsumptionchargeincreaseswere7.7%and 8.7%,respectively.For2015,noincreasewasincludedinthebudgetforeitherthebasechargeorthe consumptioncharge.However,subsequenttobudgetadoption,thecouncilraisedbothcharge5% for2015. Sewagecharges,similarlytowatercharges,havetwocomponents:basechargewithaminimum usageamountandconsumptionchargeforusageabovetheminimumamount.Bothchargeshave increasedsteadilyovertheyears:averagebasechargeandconsumptionchargeincreaseswere8.1% bothcharges.For2015,noincreasewasincludedinthebudgetforeitherthebasechargeorthe consumptioncharge.However,subsequenttobudgetadoption,thecouncilraisedbothcharges5% for2015. 79 Thefollowingchartreflectsthewaterandsewagebaseratesoverthelasttenyears: $- $5 $10 $15 $20 $25 2006200720082009201020112012201320142015 Quarterly C harge SewageandWaterBaseRates Sewage Water LIQUORFUND Withtotal2014salesover$5million,Monticello’sliquorstoreranksnearthetopofMinnesotacities withonlyonestore.However,revenuegrowthisexpectedtoslowbecauseofstoresizelimitations. Totalsaleshaveclimbedanaverageof4%forthelastfiveyears;winehasthefastestgrowthcategory withanaverageabove7%overfiveyears,butgrewataratebelowaveragein2014. Liquorsaleshaveincreasedoverthelastfiveyearsandthebudgetreflectsthistrend.TheLiquor Fundhasoneretailoutlet:Hi-WayLiquors.Thisfundprovidesvitalresourcesformanycommunity projectsincludingcommunitycenterandstreetimprovements.Conservativerevenueestimatesare usedforbudgetingpurposes.However,2015netcashflowfromoperationsshouldtop$600,000.In prioryears,interestearningscontributedsignificantlytonetcashflows.Alargeoperatingtransfer outin2012depletedcashandsubsequentongoingtransfershavecurtailedinvestmentearnings. $- $1 $2 $3 $4 $5 $6 2010 2011 2012 2013 2014 Millions Hi-WaySalesbyCategory Wine Liquor Beer 80 FIBEROPTICSFUND Monticello’stelecommunicationsutility,FiberNetMonticello,providesinternet,telephone(voice) andvideo(TV)services.Cityresidentialandcommercialcustomerscansubscribetoone,twoorall threeservices.FiberNetcontinuestofacecompetitionfromtwolargeprivateproviderswithdeep pockets.Asaresult,subscribercountsforvoiceandTVhavedeclinedinrecentyears.Internetis showingsomegrowthasmorecustomersstreamvideoservices.Still,commercialandresidential customersarebenefittingfromlowerbillswithFiberNet’spresenceinthemarketplaceevenifthey arenotFiberNetcustomers. - 200 400 600 800 1,000 1,200 1,400 1,600 3Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q14 # of Customers FiberNetCustomerBase Voice Internet TV 81 APPROPRIATIONSBYTYPE Expenditures,oftencalled“Appropriations,”areclassifiedunderoneofsixmajorcategories: personnelservices(wages&benefits),supplies,otherservices&charges(professionalfees, utilities,etc),capitaloutlay,debtservice,andoperatingtransfers(otherfinancinguses).Thegraph belowshowstherelativepercentageofFY15budgetedexpendituresforthesesixmajorcategories forallfunds,combined.Itexcludesdebtservicepaidfromanadvancerefundingescrowaccount. Personnel Services 14% Supplies 13% CapitalOutlay 27% OtherServices &Charges 19% DebtService 15% Operating Transfers 12% 2015AppropriationsbyType-AllFunds APPROPRIATIONSBYTYPE,GENERALFUNDONLY—Usingthosesamecategoriesofexpenditure type,therelativepercentagesofbudgetedexpendituresfortheGeneralFundareshownbelow.As youcansee,theGeneralFundiscomprisedofamuchhigherpercentageofpersonnelservicescosts comparedtoallfunds,asawhole.TheGeneralFundsupportsverylittlecapitalimprovementsand nodebtservicecomparedtoallfunds,asawhole. Personnel Services 38% Supplies 8%CapitalOutlay 3% OtherServices &Charges 49% Operating Transfers 2% 2015AppropriationsbyType-GeneralFund 82 Ingovernmentalagencies,salaries,wagesandbenefits(personnelservices)normallyrepresentthe largestofthesecategories.However,duetothesignificantinvestmentininfrastructure,citieshave amuchhigherpercentageofthebudgetdevotedtooperatingandcapitalcosts,includingdebt service,thanmostothergovernmentalagencies.Oneotherfactor:thecitycontracts(otherservices andcharges)forlawenforcement,legalandassessingservices. Asshown,enterprisefunds,debtservicefundsandtheGeneralFundaccountfor75%ofthetotal expendituresofthecity. TheGeneralFundisthecity’sprimaryoperatingaccountforgeneralgovernment operations. Debtservicefundsincludeonlynon-enterpriseandnon-internalservicefunddebt. Thesefundsaresupportedwithpropertytaxes,specialassessments,taxincrements, andaccessfundtransfers. Enterprisefundsconsistofwater,sewage,liquor,deputyregistrar(DMV),andfiber opticsfunds.Thesefundsoperateonaself-supportingbasis. Specialrevenuefunds,totaling13%ofappropriations,includeavarietyoffeesupportedfunds includingthecommunitycenterandcemetery. CapitalProjectFunds,totaling18%ofappropriations,includeimprovementfundsforstreet reconstructionandstreetlighting,andothercapitalassetacquisitionfunds,excludingthose purchasedthroughenterpriseandinternalservicefunds. GeneralFund 18%Special Revenue Funds 9%DebtService Funds 14%Capital Project Funds 18% Enterprise Funds 39% Internal ServiceFunds 2% 2015AppropriationsbyFund-Type 83 Thispageintentionallyleftblank 84 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2015 GENERAL FUND GENERALFUND-SUMMARY FUNDDESCRIPTION Oneoffivegovernmentalfundtypes,theGeneralFundservesasthechiefoperatingfundofthe city.TheGeneralFundisusedtoaccountforallfinancialresourcesnotaccountedforinsomeother fund.Thefundusesthemodifiedaccrualbasisofaccountingforbudgetingandfinancialreporting purposes.Thismeansexpendituresarerecordedwhentheliabilityisincurredandrevenuesare recordedwhentheybecomemeasurableandavailable.TheadoptedGeneralFundbudgetisa balancedbudget--currentrevenuesandothersourcesequalexpendituresandotheruses. ISSUES TheGeneralFund’slargestrevenuesourceispropertytaxes.In2015,theGeneralFund’sportionof thelevygrewby7%--theoveralllevygrewby4.7%.ThePublicWorksDepartmenthasthelargest appropriationfor2015. GENERALFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes $5,148,326 $5,669,969 $5,580,437 $5,497,000 $5,497,000 $5,882,000 7.0% Franchise&OtherTaxes 93,368 237,022 241,664 236,500 236,500 236,500 0.0% Licenses&Permits 258,206 275,198 330,696 273,180 360,450 321,180 17.6% IntergovernmentalRevenues 261,553 304,395 373,482 289,677 286,677 299,677 3.5% ChargesforServices 398,220 310,121 280,288 261,198 272,762 267,261 2.3% Fines&Forfiets 55,700 63,106 41,124 42,100 42,100 42,100 0.0% SpecialAssessments 3,550 10,349 22,351 300 300 300 0.0% Miscellaneous 436,959 491,956 118,303 202,045 178,888 196,982 -2.5% OperatingTransfers -1,729 ------- TOTALREVENUES 6,655,882$7,363,845$6,988,345$6,802,000$6,874,677$7,246,000$6.5% EXPENDITURESBYDEPARTMENT GENERALGOVERNMENT MayorandCouncil 52,078$51,988$53,696$53,925$52,800$53,925$0.0% CityAdministration 238,736 228,738 260,322 294,406 293,881 305,153 3.7% Elections 1,000 38,933 2,425 37,573 38,417 3,093 -91.8% Finance 377,894 337,348 326,510 398,896 399,696 405,558 1.7% Audit 42,720 39,227 47,823 41,000 49,800 43,000 4.9% CityAssessing 49,032 49,600 49,664 51,915 50,100 52,115 0.4% Legal 42,491 40,275 46,905 37,000 32,000 37,000 0.0% HumanResources 74,537 84,041 93,067 105,820 104,420 116,631 10.2% Planning&Zoning 173,918 163,629 182,753 200,005 208,505 203,320 1.7% InformationTechnologyServices 116,790 130,102 95,572 47,845 47,345 46,829 -2.1% CityHall 223,887 233,602 215,507 208,348 203,348 200,749 -3.6% PrairieCenterBuilding 26,911 15,095 15,355 20,785 20,180 19,080 -8.2% TOTALGENERALGOVERNMENT 1,419,994$1,412,578$1,389,599$1,497,518$1,500,492$1,486,453$-0.7% Continued… 85 GENERALFUND 2011 2012 2013 2014 2014 2015 % (Continued)ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PUBLICSAFETY LawEnforcement 1,176,985$1,187,382$1,190,441$1,140,726$1,140,421$1,175,815$3.1% Fire&Rescue 195,801 207,778 222,141 263,610 291,910 266,011 0.9% FireRelief 72,647 74,221 109,594 75,000 75,000 80,000 6.7% BuildingInspections 245,272 248,376 251,007 284,605 283,905 304,452 7.0% CivilDefense 26,823 2,719 9,707 3,836 3,336 3,856 0.5% AnimalControl 45,829 49,594 47,426 49,022 48,257 50,724 3.5% NationalGuard 20,668 14,287 14,517 22,250 17,050 17,050 -23.4% TOTALPUBLICSAFETY 1,784,025$1,784,357$1,844,833$1,839,049$1,859,879$1,897,908$3.2% PUBLICWORKS PublicWorksAdministration 181,639$176,457$113,882$119,290$118,993$123,580$3.6% Engineering 220,078 200,287 224,028 136,916 152,796 169,508 23.8% PublicWorksInspecitons 45,749 64,827 54,878 94,028 93,078 96,952 3.1% Streets&Alleys 615,836 655,170 689,046 875,150 872,985 876,407 0.1% Ice&Snow 173,842 133,193 210,552 237,136 237,136 250,684 5.7% Shop&Garage 185,191 219,646 186,741 190,583 188,083 194,810 2.2% Stormwater 16,553 51,468 12,064 33,140 32,190 73,168 120.8% ParkingLots 11,748 4,568 2,965 9,303 8,803 9,403 1.1% StreetLighting 205,986 196,779 206,005 222,500 218,600 229,500 3.1% RefuseCollection 495,693 500,037 505,996 521,397 521,397 588,291 12.8% TOTALPUBLICWORKS 2,152,315$2,202,432$2,206,157$2,439,443$2,444,061$2,612,303$7.1% RECREATIONANDCULTURE CommunityCelebrations 39$5,165$1,186$3,300$3,300$3,300$0.0% SeniorCenter 93,171 88,441 90,219 97,022 96,122 99,922 3.0% Transit ---3,000 7,000 40,000 1233.3% IceArena 75,000 75,000 75,000 ------ ParkOperations 559,156 528,001 572,985 696,835 695,185 803,325 15.3% ParkImprovements 1,922 5,536 ------- ParkBallfields 18,546 29,419 25,517 32,800 30,500 32,800 0.0% ShadeTree 44,479 52,983 53,475 52,069 62,069 58,628 12.6% Library 36,287 29,715 35,395 38,948 38,548 39,962 2.6% TOTALRECREATIONANDCULTURE 828,600$814,260$853,777$923,974$932,724$1,077,937$16.7% UNALLOCATED EconomicDevelopment 149,008 45,585 ------- Insurance 249,987 233,717 127,710 9,016 9,016 7,329 -18.7% TOTALUNALLOCATED 398,995$279,302$127,710$9,016$9,016$7,329$-18.7% --- OTHERUSES --- OperatingTranfers 728,383$2,393,502$130,213$93,000$293,000$164,070$76.4% TOTALOTHERUSES 728,383$2,393,502$130,213$93,000$293,000$164,070$76.4% TOTALEXPENDITURES 7,312,312$8,886,431$6,552,289$6,802,000$7,039,172$7,246,000$6.5% FUNDBALANCE-JANUARY1 5,657,523$5,001,093$3,478,507$3,914,563$3,914,563$3,750,068$ Excess(Deficiency)of RevenuesoverExpenditures (656,430)(1,522,586)436,056 -(164,495)- FUNDBALANCE-DECEMBER31 5,001,093$3,478,507$3,914,563$3,914,563$3,750,068$3,750,068$ 86 TheprevioustablesummarizesGeneralFundrevenuesbyclassificationsandexpendituresby activities/divisionsanddepartments.Thetablebelowsummarizesbothrevenuesandexpenditures byclassifications. GENERALFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 5,148,326$5,669,969$5,580,437$5,497,000$5,497,000$5,882,000$7.0% TaxIncrements --------- Franchise&OtherTaxes 93,368 237,022 241,664 236,500 236,500 236,500 0.0% Licenses&Permits 258,206 275,198 330,696 273,180 360,450 321,180 17.6% IntergovernmentalRevenues 261,553 304,395 373,482 289,677 286,677 299,677 3.5% ChargesforServices 398,220 310,121 280,288 261,198 272,762 267,261 2.3% Fines&Forfeits 55,700 63,106 41,124 42,100 42,100 42,100 0.0% SpecialAssessments 3,550 10,349 22,351 300 300 300 0.0% Miscellaneous 436,959 491,956 118,303 202,045 178,888 196,982 -2.5% OperatingTransfers -1,729 ------- TOTALREVENUES 6,655,882$7,363,845$6,988,345$6,802,000$6,874,677$7,246,000$6.5% EXPENDITURES PersonnelServices 2,649,533$2,710,939$2,589,353$2,680,760$2,707,059$2,734,757$2.0% Supplies 452,340 482,080 520,328 543,975 572,675 575,800 5.9% OtherServices&Charges 3,448,994 3,366,417 3,291,073 3,358,565 3,344,738 3,575,773 6.5% CapitalOutlay 33,062 -59,535 125,700 121,700 195,600 55.6% OperatingTransfers 728,383 2,326,995 92,000 93,000 293,000 164,070 76.4% TOTALEXPENDITURES 7,312,312$8,886,431$6,552,289$6,802,000$7,039,172$7,246,000$6.5% FUNDBALANCE-JANUARY1 5,657,523$5,001,093$3,478,507$3,914,563$3,914,563$3,750,068$ Excess(Deficiency)of RevenuesoverExpenditures (656,430)(1,522,586)436,056 -(164,495)- FUNDBALANCE-DECEMBER31 5,001,093$3,478,507$3,914,563$3,914,563$3,750,068$3,750,068$ BUDGETCOMMENTARY: Revenues For2015,budgetedrevenuesareestimatedtoincreaseby6.5%.TheGeneralFund’sportionofthe taxlevyisbudgetedtoincreaseby7%,whichisgreaterthantheoveralllevyincreaseof4.7%. Propertytaxesaccountforover80%ofGeneralFundrevenues.TheGeneralFund’sallocationof franchiseandothertaxesincreasedtomatchrelatedexpenditures(streetlighting).Chargesfor servicesincreasedmodestlywithfeestotownshipforfireprotectionservices.Permitsandfeeswill increasewithadditionaldevelopment.Miscellaneousrevenuesareestimatedtofallslightly. Expenditures Expendituresarebudgetedtobestableacrossallclassifications,exceptcapitaloutlays.Mostofthe capitaloutlayamountreflectsCapitalEquipmentFundpurchases,whicharechargedbackthrough leasepayments.Personnelservicesincludeastepincreaseanda3%cost-of-livingadjustment.The operatingtransferoutincludes$94,900totheEconomicDevelopmentFundforexpendituresthat wereincurredintheGeneralFundinprioryears.TheremainderofthetransfergoestotheCapital ProjectFund. 87 MAYORANDCITYCOUNCIL DEPARTMENT:GeneralGovernment SUPERVISOR:Mayor&Council FUND#:101 ACTIVITY#:41110 ACTIVITYSCOPE: Themayorandcouncilprovideelectedrepresentationtothecommunitywithcontroloverpolicy goals,budget,administration,andoperations.Membersparticipateinvariouscommitteesand directstaffthroughthecityadministrator. OBJECTIVES: 1.Adoptpoliciesandordinancesconsistentwiththecouncil’spositionsongrowth,zoning, andfinancialstrategies. 2.Completethenaturalresourceinventoryandtrafficplan. 3.Examinecityfacilityneedstomeetfuturecityoperations. ISSUES: 1.Capitalizeonthecity’suniquenessbydevelopingacomprehensivevisionstatementand settingachievablegoals. 2.Successionplanningofcitystaff. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Councilmeetings 23 23 23 23 23 Specialmeetings/workshops 25 20 26 25 25 Councilresolutions 93 85 101 100 100 BUDGETCOMMENTARY: Thecouncil’sbudgetremainsconsistentwithpreviousyears.Themayorearns$700permonthand eachcouncilorearns$600permonth. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % MAYOR&COUNCIL Actual Actual Actual Budget Projected Budget Change PersonnelServices 39,690$39,685$39,685$40,500$40,000$40,500$0.0% Supplies 19 -------- OtherServices&Charges 12,369 12,303 14,011 13,425 12,800 13,425 0.0% CapitalOutlay --------- TOTALEXPENDITURES 52,078$51,988$53,696$53,925$52,800$53,925$0.0% 88 CITYADMINISTRATION DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41301 ACTIVITYSCOPE: Cityadministrationprovidestheoveralldirectionofthecity,asdeterminedbycouncilandmayor. Thecityadministratorservesasthechiefadministrativeofficer,ensuringthatlaws,ordinances,and resolutionsareimplementedandenforced.Theadministratorisalsoresponsibleformanagingthe operationsofallcitydepartments.Thedeputycityclerk'sresponsibilitiesinvolvethemanagement andretentionofallofficialrecordsanddocumentsofthecity.Theclerkisalsoresponsibleforall electionprocedures. 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: Measurement 2011 2012 2013 2014 2015 Councilmeetingsagendas 48 43 49 41 50 Recordsdigitallyconverted 75%75%75%75%75% Ordinancesprocessed 8 11 8 18 20 Councilminutesapproved 20 20 49 41 50 89 BUDGETCOMMENTARY: Theadministrationresultsfor2013and2014reflecttheshiftingofexpensesfromotherbudgetary units.Noadditionalpersonnelwereaddedinfiscalyear2014andnoadditionalpersonnelwere budgetedfor2015.Theincreaseinotherservicesandchargesreflectsthere-allocationofexpenses forITservicesandinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludes afullstepincreaseanda3%cost-of-livingincrease.Otherbudgetitemsareexpectedtoremainclose toprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % ADMINISTRATION Actual Actual Actual Budget Projected Budget Change PersonnelServices 216,135$207,440$214,818$232,861$232,336$245,190$5.3% Supplies 1,569 483 298 300 300 300 0.0% OtherServices&Charges 21,032 20,815 45,206 61,245 61,245 59,663 -2.6% CapitalOutlay --------- TOTALEXPENDITURES 238,736$228,738$260,322$294,406$293,881$305,153$3.7% 90 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. 2.Recruitandtrainnewcityclerk. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Voters,numberof 0 6,007 0 3,714 0 Registervoters,numberof 6,184 6,164 6,164 6,394 6,394 Pollingplaces 1 1 1 1 1 Electionsjudges 0 50 0 50 0 BUDGETCOMMENTARY: The2015electionoff-yearbudgetismostlyformaintenancecontractsofcityvotingmachines.In 2012,therewereelectionsforpresidentandafullslateoffederal,state,andlocaloffices.The2014 electionsincludeaprimaryandgeneralelectionforfederal,stateandlocaloffices. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % ELECTIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 103$20,367$-$16,910$18,754$-$-100.0% Supplies -450 -950 950 --100.0% OtherServices&Charges 897 18,116 2,425 19,713 18,713 3,093 -84.3% CapitalOutlay --------- TOTALEXPENDITURES 1,000$38,933$2,425$37,573$38,417$3,093$-91.8% 91 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. 6.Cross-trainingoffinanceteammembersincorefunctions(payroll,AP,utilitybillingand accountsreceivable). 92 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Outcome/Effectiveness: GFOABudgetAward Yes Yes Yes Yes Yes GFOACertificateof Achievement YesYesYesYesYes BondRating Aa3 A2 A2 A2 A2 ACHsas%oftotalAPactivity 10%20%39%45%47% Efficiency: AP&ACHsperFTE(1.5)3,149 2,615 1,938 2,121 2,133 WorkLoad: APchecks,numberof 4,253 3,139 1,783 1,744 1,700 ACH's 470 784 1,124 1,437 1,500 W-2s 264 258 269 273 275 1099's 49 49 35 56 50 Journalentries 2,8773,0093,106 3,003 3,000 BUDGETCOMMENTARY: TheFinancebudgetincludesfundstohandlethefinancialtransactionsofthecity,inanefficient manner,whilemaintainingthehighestlevelofinternalcontrolsandsegregationofduties.Theprior yearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafullstepincrease witha3%cost-of-livingincrease.In2013,onefull-timepositionwasreturnedtopart-timestatus. Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % FINANCE Actual Actual Actual Budget Projected Budget Change PersonnelServices 319,357$304,516$282,224$323,725$323,725$335,490$3.6% Supplies 2,271 2,556 2,540 1,850 2,650 2,650 43.2% OtherServices&Charges 56,266 30,276 41,746 73,321 73,321 67,418 -8.1% CapitalOutlay --------- TOTALEXPENDITURES 377,894$337,348$326,510$398,896$399,696$405,558$1.7% 93 AUDIT DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41540 ACTIVITYSCOPE: Anauditofcityfinancesmustbecompletedonanannualbasisforthecitytoremainincompliance withfederalandstateaccountingpractices. OBJECTIVES: 1.Completethefinancialauditinatimelyfashion. 2.Continuetoreducethenumberofauditfindingsandadjustments. ISSUES: 1.Increasingreportingrequirementsandauditingstandards. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Auditsubmittaldate 6/17 6/29 6/26 6/30 6/15 Auditfindings 3 2 2 2 2 Opinion UnqualifiedUnqualifiedUnqualifiedUnmodifiedUnmodified GFOAAward Yes Yes Yes Yes Yes BUDGETCOMMENTARY: Thebudgetforauditingconsistsentirelyoftheexpensesassociatedwiththerequiredauditprocess. Inlate2007,aRequestforproposal(RFP)forauditserviceswassenttoseveralfirms.TheRFP guaranteedthecostforauditservicesfortheyearsended2007through2009andresultedinacost decreasefrompreviousyears.Thiscontractwasextendedfor2015fiscalyear.Thefinance departmentplansonpreparingthe2014financialreport. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % AUDIT Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 42,720 39,227 47,823 41,000 49,800 43,000 4.9% CapitalOutlay --------- TOTALEXPENDITURES 42,720$39,227$47,823$41,000$49,800$43,000$4.9% 94 ASSESSING DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41550 ACTIVITYSCOPE: AssessingrequirementsarehandledthroughacontractthecitywiththeWrightCountyassessor. Therearenoplanstoalterthisactivity. OBJECTIVES: 1.Toassessnewandexistingparcelswithinthecityasrequired. ISSUES: 1.Pressureoffairlyappraisingpropertiesundercurrentmarkettrends. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Newresidentialproperties 2 2 22 52 25 Newcommercialproperties 6 6 1 2 6 Parcelsassessed 4,6764,6694,6684,6034,700 BUDGETCOMMENTARY: AssessingservicesarecontractedwiththeWrightCountyassessor.Theestimatedcostsfor assessmentsarebasedonnumberofexistingandnewparcels.Thecitypays$10.50perparcelfor assessmentservicesand$25foreachnewpermitwithanestimatedconstructionvalueunder $499,999and$100forvaluesover$500,000. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % ASSESSING Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 49,032 49,600 49,664 51,915 50,100 52,115 0.4% CapitalOutlay --------- TOTALEXPENDITURES 49,032$49,600$49,664$51,915$50,100$52,115$0.4% 95 LEGAL DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41601 ACTIVITYSCOPE: Privatelegalfirmsprovideallthecity’slegalservices.Activitiesincludedaretheissuanceoflegal opinions,preparationofordinances,resolutions,contracts,andagreements,andtheconductofcivil litigation.Additionallegalexpenditures,suchaspublications,feesandothercosts,areaccountedfor inthelegalbudget. OBJECTIVES: 1.Continuetorealizesavingsbycontractinglegalservices. ISSUES: 1.Risingcostsassociatedwiththeneedforexistingandnewlegalservices. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Billedhours: Administration 198.4 201.3 269.5 280.5 280.0 Codeenforcement 2.4 14.3 3.9 21.9 20.0 Fiberoptics 34.2 130.8 153.5 116.5 50.0 Allother 79 48 41 87 80 Total 314 394 468 506 430 BUDGETCOMMENTARY: Thecitycontinuestorealizesavingsfromnothavingfull-timecounsel.Legalservicesprovidedto FiberNetarechargedtotheFiberOpticsFund. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % LEGAL Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 42,491 40,275 46,905 37,000 32,000 37,000 0.0% CapitalOutlay --------- TOTALEXPENDITURES 42,491$40,275$46,905$37,000$32,000$37,000$0.0% 96 HUMANRESOURCES DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41801 ACTIVITYSCOPE: HumanResourcesactivitiessupporttheprimarymissionofthecitythroughtheeffective recruitment,selection,development,trainingandassessmentofappropriatehumanresourceneeds. Employeebenefitsandcompensationadministration,implementationof,andcompliancewith FederalandStateemploymentlaws,labornegotiations,processingofemployeegrievances,and developmentofpersonnelpoliciesaremajorhumanresourcefunctions. OBJECTIVES: 1.Providerecruiting,interviewing,andotherpersonnelservicesforallcitydepartments. 2.Administerclassificationandcompensationsystemforallemployeesincompliance withpayequity. 3.Planandcoordinatein-housetrainingprogramsforcitystaff 4.Administercitybenefitplans. ISSUES: 1.Developcitypersonnelhandbook. 2.Developvariouspersonnelpolicies. 3.Developandimplementcitydrugandalcoholtestingprogram. 4.Negotiatenewunioncontractforpublicworksemployees. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Workerscompensation experiencemodification 133%111%97%76%71% Full-timepositions 61 58 55 55 56 Part-timepositions 80 82 95 100 100 Full-timepositionsfilled 5 2 3 7 3 Otherpositionsfilled 25 59 77 79 79 Avg,numberofemployess 141 140 150 155 156 97 BUDGETCOMMENTARY: In2010thehumanresourcepositionwaschangedtoafull-timeposition.The2015budgetreflects estimatedcostsforsettinguptraining,providingcitystaffwithbenefitandcompensation information,andotherexpensesbasedonpastexperience.Theprioryearincreaseinotherservices andchargesreflectsthere-allocationofexpensesforITservicesandinsurances(property,liability andvehicle).Thecurrentyearincreaseinotherservicesrepresentstheadditionofcity-wide leadershiptraining.Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-living increase.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % HUMANRESOURCES Actual Actual Actual Budget Projected Budget Change PersonnelServices 64,654$71,732$78,362$85,035$85,035$87,213$2.6% Supplies 52 180 328 600 600 500 -16.7% OtherServices&Charges 9,831 12,129 14,377 20,185 18,785 28,918 43.3% CapitalOutlay --------- TOTALEXPENDITURES 74,537$84,041$93,067$105,820$104,420$116,631$10.2% 98 PLANNING,ZONING&COMMUNITYDEVELOPMENT DEPARTMENT:GeneralGovernment SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:41910 ACTIVITYSCOPE: TheCommunityDevelopmentandPlanningDepartmentisresponsibleforlong-rangeandcurrent planningeffortsforMonticello.Thedepartmentisresponsibleforregulatingdevelopmentanduse standardsasoutlinedinthezoningandsubdivisionordinance;thesestandardsareaimedat protectingandpromotingpublichealth,safety,andwelfare.Thedepartmentoverseescoordination withregionalplanningandserviceprovidersincludingMonticelloTownshipBoard,Monticello OrderlyAnnexationBoard,WrightCountyPlanning&Zoning,SherburneCountyPlanningandZoning andregionaltransitentities.Thedepartmentalsoprovidescitizens,businessowners,anddevelopers withcurrent,easilyaccessibleinformationaboutMonticello'splanningprocessandwhat'shappening intheircommunity. OBJECTIVES: 1.ImplementationofComprehensivePlanobjectives. 2.Completionofsubdivisionordinanceamendmentsconsistentwiththe“NextSteps” outlinedbytheComprehensivePlan. 3.Supportfordowntownredevelopmentandrevitalization,includingtheEmbracing DowntownMonticelloProject. 4.Involvementinregionaltransportationplanninganditsimpactonlanduseand growthobjectives. 5.BertramChainofLakesacquisitionandmasterplanning. 6.Continuedimplementationandtrainingonthecity'sGIS. 7.Continuedimprovementsofthecity'sdevelopmentandplanningprocess. 8.Increasedsupportforneighborhoodorganizationsandinvolvement. ISSUES: 1.Zoningcomplianceandenforcement. 2.Recordsmanagementandintegrationforplanningandzoning. 3.Landuseandtransportationrelationships. 4.Emergingtechnologyandlanduseimpacts. 99 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Outcome/Effectiveness: Grantsawarded 4 0 2 1 Grantawards $571,820 $0 $1,163,248$100,000 Administrativeapplications(total)5 10 16 15 processedwithin5workingdays 2 2 7 7 SitePlanreviewsprocessed within14workingdays 2 3 3 2 LandUseapplicationsprocessed within60workingdays 28 19 32 20 Reconciliationsprocessedwithin 60daysofthedecision 12 18 18 Efficiency: ApplicationsprocessedperFTE(1)28 35 47 33 WorkLoad: PlanningApplications: Variances 2 3 2 1 CUPs 4 4 8 6 PUD/AmendmentstoPUD 1 3 6 4 InterimUsepermits 1 0 2 0 CompPlanamendments 2 1 0 Mapamendments 1 4 3 2 Non-cityzoningtextamendments 2 0 1 0 Plats/adminstrativesubdivisions 4 4 3 2 Administrativepermits 8 10 16 15 Siteplanreviews 2 3 3 2 Appeals 1 0 Vacations 3 2 1 1 Totalapplications 28 35 47 33 Planningreconciliations 14 12 18 20 Commissionmeetings 12 13 15 13 Grantapplications 4 0 2 1 BUDGETCOMMENTARY: Theprioryearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafull stepincreaseanda3%cost-of-livingincrease.Wagesandbenefitsforpersonnelservicesreflect1.3 full-timeequivalents:1fordepartmentdirectorand.3forsupportstaff.Thisdepartmentleadsin securinggrantsforlandacquisition/developmentoftheBertramChainofLakesPark. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PLANNING&ZONING Actual Actual Actual Budget Projected Budget Change PersonnelServices 106,428$102,001$108,269$114,454$114,454$117,302$2.5% Supplies 441 174 143 400 400 200 -50.0% OtherServices&Charges 67,049 61,454 74,341 85,151 93,651 85,818 0.8% CapitalOutlay --------- TOTALEXPENDITURES 173,918$163,629$182,753$200,005$208,505$203,320$1.7% 100 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. 101 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Outcome/Effectiveness: Networkuptime 99%99%99% Numberofclosedrequests 322 348 372 372 Efficiency: Operationhoursvs.reported hoursassignedtorequests Opentoclosedrequestsratio 99%99%99%99% WorkLoad: Numberofhelpdeskrequests 326 352 375 375 Numberofclients/users 60 56 57 57 NumberofPC,servers,and networkdevices 95 100 102 102 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Theprior yeardecreaseinotherservicesandchargesreflectstheinitiationofanITServicesinternalservice fund,whichre-allocatesexpensestootherbenefittingactivities. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % ITServices Actual Actual Actual Budget Projected Budget Change PersonnelServices 32,580$29,464$36,002$35,813$35,813$35,405$-1.1% Supplies 6,158 18,828 13,958 ------ OtherServices&Charges 60,667 81,810 45,612 1,232 732 624 -49.4% CapitalOutlay 17,385 --10,800 10,800 10,800 0.0% TOTALEXPENDITURES 116,790$130,102$95,572$47,845$47,345$46,829$-2.1% 102 CITYHALL DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41940 ACTIVITYSCOPE: Theactivityforthisdepartmentistoallowcityhalltorunsmoothly,byprovidingsupplies,customer service,andstaffingresourcesforthecity. OBJECTIVES: 1.Toprovidefriendly,knowledgeablecustomerservicetothepublic. 2.Provideadequateandconsistenthoursofbusinessthroughouttheyear. 3.Maintainareputablefacilitytohousemeetingsandstaff. 4.Expansionofresourcesforinformationdistribution. ISSUES: 1.Continuingtoimproveinternalandexternalcommunicationsystems 2.ManagementofCitizenServiceDeskwithcontinuedgrowthofinquiriesandneedto improveresponsetimes. 3.Assistancewithphonesystemupgradeandtraining. 4.Maintainingcurrent,accurateinformationforallpublicsources. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Newsletterspublished 2 2 2 2 2 Utilityinsertspublished 2 2 2 2 2 Parkinsertspublished 4 4 4 4 4 Servicedeskdataentry 381 322 332 280 300 BUDGETCOMMENTARY: This Itemsbudgetedforcityhallactivityarecommonlysharedamongalldepartmentsoperatingout ofcityhall,aswellassomesuppliesusedbythecommunitycenter.Thedecreaseinotherservices andchargesreflectsthere-allocationofexpensesforITservicesandinsurances(property,liability andvehicle)tootherbudgetunits.Thepersonnelservicesbudgetincludesafullstepincreaseanda 3%cost-of-livingincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. 103 BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % CITYHALL Actual Actual Actual Budget Projected Budget Change PersonnelServices 58,459$56,346$111,633$115,555$115,555$112,284$-2.8% Supplies 17,248 12,585 12,218 20,000 18,500 17,200 -14.0% OtherServices&Charges 148,180 164,671 91,656 72,793 69,293 71,265 -2.1% CapitalOutlay --------- TOTALEXPENDITURES 223,887$233,602$215,507$208,348$203,348$200,749$-3.6% 104 PRAIRIECENTERBUILDING DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41941 ACTIVITYSCOPE: Thecity-ownedPrairieCenterBuildingleasesspacetoitsFiberNetoperationsandtoanon-profit group.TheWrightCountySheriff'sDepartmentalsohasspaceinthebuilding.Thisactivityisforthe maintenanceofthisfacility. OBJECTIVES: 1.Toprovideawellmaintainedbuilding. ISSUES: 1.Maintainfacilitywithcurrentstaffandavailablefunds. 2.Tenantretention. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Tenants 3 3 3 3 2 BUDGETCOMMENTARY: ThePrairieCenterBuildingwaspurchasedin2009toprovideFiberNetMonticellowithbusiness officespace.The2015budgetisbasedon2014projectedexpenditures.The2014increaseinother servicesandchargesreflectstheallocationofinsuranceexpenses(liability,propertyandvehicle). BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PRAIRIECENTERBLDG Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 417 519 452 1,000 1,000 1,000 0.0% OtherServices&Charges 26,494 14,576 14,903 19,785 19,180 18,080 -8.6% CapitalOutlay --------- TOTALEXPENDITURES 26,911$15,095$15,355$20,785$20,180$19,080$-8.2% 105 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 2011 2012 2013 2014 2015 Outcome/Effectiveness: Arrests 1019 942 1004 822 800 Arreststocrimesratio 0.77 0.73 0.79 0.75 0.76 Efficiency: Hourscontracted 18,980 18,980 18,980 17,520 17,520 Callsperhourcontracted 0.340.320.320.370.35 Costsperworkloadunit $175.44 $188.68 $186.47 $169.98 $185.25 WorkLoad: Servicecalls,numberof 2,851 2,832 2,846 2,857 2,850 Trafficcalls,numberof 1,847 1,621 1,657 2,080 1,800 Vehiclecrashes,numberof 359 289 388 415 400 Crimes,numberof 1,3261,2851,2671,0901,050 106 BUDGETCOMMENTARY: Lawenforcementservicesarecontractedinfour-hourincrementsfromtheWrightCountySheriff’s Department.Pasthourlyratesareasfollow:2014-$62.50;2013-$60.50;2012-$59.75;2011- $59.00.Thehourlyratefor2015willbe$64.50.Thecitycontractedfor17,520hoursin2014and 2015,whichis4(52to48hours)perdaylowerthanthe18,980hourscontractedforin2013. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % LAWENFORCEMENT Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 1,176,985 1,187,382 1,190,441 1,140,726 1,140,421 1,175,815 3.1% CapitalOutlay --------- TOTALEXPENDITURES 1,176,985$1,187,382$1,190,441$1,140,726$1,140,421$1,175,815$3.1% 107 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.Theadopted2015expendituresbylineitemaresimilartothoseinthe2014 budget. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % FIRE Actual Actual Actual Budget Projected Budget Change PersonnelServices 111,705$107,163$118,073$117,041$128,541$120,065$2.6% Supplies 29,739 41,275 42,317 35,650 52,450 35,400 -0.7% OtherServices&Charges 54,357 59,340 61,751 69,619 69,619 69,246 -0.5% CapitalOutlay ---41,300 41,300 41,300 0.0% TOTALEXPENDITURES 195,801$207,778$222,141$263,610$291,910$266,011$0.9% 108 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Outcome/Effectiveness: Respondentstofirecalls: City 2,859 2,270 2,887 2,918 2,300 MonticelloTownship 1,066 1,000 1,121 1,318 1,000 SilverCreekTownship 545 278 428 509 275 Otsego 59 271 15 -- MutualAid 455 803 463 486 80 Drills&Maintenance 1,178 1,859 1,596 2,888 1,900 Total 6,162 6,481 6,510 8,119 5,555 Efficiency: Averagerespondentspercall City 15 15 16 15 13 MonticelloTownship 18 19 19 20 17 SilverCreekTownship 17 15 16 18 9 Otsego 15 25 --------- MutualAid 27 37 26 29 4 Drills&Maintenance 29 37 31 49 35 Total 18 21 19 22 16 WorkLoad: Numberoffirecalls: City 187 155 183 190 180 MonticelloTownship 59 53 60 67 60 SilverCreekTownship 32 18 27 29 30 Otsego 4 11 --- MutualAid 17 22 18 17 20 Drills&Maintenance 41 50 52 59 55 Total 340 309 340 362 345 Firefighters,numberof 30 30 30 30 30 109 FIRERELIEF DEPARTMENT:PublicSafety SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:42202 ACTIVITYSCOPE: Providingaretirementbenefittopaid-on-callvolunteers,thefirereliefactivityisspecifically designedtotrackthecity’scontributiontotheMonticelloFireReliefAssociation. OBJECTIVES: 1.ProvidepensionfundsfortheMonticelloFireReliefAssociation. ISSUES: 1.Tobecomeorstayfullyfunded. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Pensionassets 1,127,049$1,046,960$1,114,949$1,135,000$1,150,000$ Pensionliabilities 1,220,861$1,031,472$965,425$985,000$1,000,000$ Assets-liabilitiesratio 0.92 1.02 1.15 1.15 1.15 CityContribution $2,750 $2,750 $2,850 $2,850 $3,100 Firefighters,numberof 30 30 30 30 30 BUDGETCOMMENTARY: Thefirereliefbudgetconsistisbasicallyaconduitfordistributionofstatefireaidtothepensionfund forvolunteerfirefighters.Stateaidrevenueequalsthecontributiontothereliefassociation. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % FIRERELIEF Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 72,647 74,221 109,594 75,000 75,000 80,000 6.7% CapitalOutlay --------- TOTALEXPENDITURES 72,647$74,221$109,594$75,000$75,000$80,000$6.7% 110 BUILDINGINSPECTIONS DEPARTMENT:PublicSafety SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:42401 ACTIVITYSCOPE: TheBuildingDepartmentinspectsallnewandremodeledconstructionwithinthecitybyastate certifiedbuildinginspector.Thedepartmentinitiatesallbuildingpermitsandoverseesthe enforcementofallpublicnuisanceandordinanceissues. OBJECTIVES: 1.Continueimplementationoftherentallicensingprogram. 2.Continueimplementationofzoningordinancechanges. 3.Continuesignordinanceupdate. 4.Implementyearlycontractor,realtor,andrentalpropertyownerworkshops. 5.Continuepublicrelationscontact.Improvecity'spublicperceptionimage. 6.Continueimplementationofthebuildingcodes. ISSUES: 1.Managingandprioritizingdepartmentworkloads. 2.Facingthechallengesofagrowingregionalcentercityandthepossiblereboundof residentialpropertygrowth. 3.Keepupwithrentallicenseinspectionsofinvestorownedresidentialproperties. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Outcome/Effectiveness: Valueofpermitsissued 12,285,873$12,802,549$15,821,223$19,714,895$30,000,000$ ValueofpermitsperFTE 4,095,291$4,267,516$5,273,741$6,571,632$8,571,429$ Efficiency: DepartmentalFTEs 3 3 3 3 3.5 RentalinspectionsperFTE(2)600 600 671 692 700 PermitsperFTE 211 219 220 240 214 WorkLoad: Buildingpermitsissued 632 657 659 721 750 Nuisancenoticesissued 300 250 161 156 150 111 BUDGETCOMMENTARY: Theprioryearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafull stepincreasewitha3%cost-of-livingincrease.Wagesandbenefitsforpersonnelservicesreflecta.5 increaseinfull-timeequivalentsfor2015.Otherbudgetitemsareexpectedtoremainclosetoprior yearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % BUILDINGINSPECTIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 221,442$221,596$229,817$246,322$246,322$269,752$9.5% Supplies 4,121 2,817 4,659 6,750 6,750 5,900 -12.6% OtherServices&Charges 19,709 23,963 16,531 31,533 30,833 28,800 -8.7% CapitalOutlay --------- TOTALEXPENDITURES 245,272$248,376$251,007$284,605$283,905$304,452$7.0% 112 CIVILDEFENSE DEPARTMENT:CivilDefense SUPERVISOR:ChiefBuildingOfficial FUND#:101 ACTIVITY#:42501 ACTIVITYSCOPE: Thecivildefensedepartmentprovidesconstantdefensecoverageforallweatherandpowerplant relatedemergencysituationswithinthecity. OBJECTIVES: 1.Implementcityhall,communitycenter,andNationalGuardemergencypreparedness. ISSUES: 1.Preparedness-littleornowarningwhenanemergencyoccurs. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Meetingshoursperyear 78 156 145 60 150 Sirens,numberof 106 106 106 106 106 Testsperyearpersiren 48 48 48 48 48 BUDGETCOMMENTARY: The2015budgetisbasedonthe2014budget.Withtheretirementofthecity'spreviousbuilding official,muchofthisactivity'sresponsibilitieshavebeentransferredtoWrightCounty.However,the cityisanactiveparticipanttheemergencymanagementteam. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % CIVILDEFENSE Actual Actual Actual Budget Projected Budget Change PersonnelServices 1,541$1,991$1,221$1,612$1,612$1,612$0.0% Supplies 23,749 -7,246 100 100 100 0.0% OtherServices&Charges 1,533 728 1,240 2,124 1,624 2,144 0.9% CapitalOutlay --------- TOTALEXPENDITURES 26,823$2,719$9,707$3,836$3,336$3,856$0.5% 113 ANIMALCONTROL DEPARTMENT:AnimalControl SUPERVISOR:ProjectCoordinator FUND#:101 ACTIVITY#:42701 ACTIVITYSCOPE: Thecitycontractswithaprivateindividualforanimalcontrolservices.Thecityownsandmaintains theanimalcontrolfacility.Thecityalsocontractswithnearbycommunities,allowingthemtouseour servicesandfacility. OBJECTIVES: 1.Toaddressissueswithinthecityandsurroundingcommunitiesinatimelyand courteousmanner. 2.Continuetoimproveanimalcontrolresponsetime. 3.Continuetoimprovebillingproceduresforanimalcontrolissues. ISSUES: 1.Toprovidequickresponsetoresidentsonanimalcontrolconcerns. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Strayanimalreports 496 500 Barkingdogreports 190 200 Lost/foundreports 1,670 1,600 Feralcattrapping 261 260 Unsanitaryconditionreports 201 200 Abuse/neglectreports 171 175 Impounds 556 550 Dogbitereports 88 75 Animalcontrolfees $29,272 $29,764 $35,169 $36,000 BUDGETCOMMENTARY: Theprofessionalservicecontracttohandleallanimalcontrolissuesisthelargestbudgeteditemat $39,015.Theremainingbudgetitemsareforsuppliesandotherservicechargesrelatedtooperating theanimalcontrolfacility. 114 BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % ANIMALCONTROL Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 2,876 3,795 3,362 2,550 2,550 3,300 29.4% OtherServices&Charges 42,953 45,799 44,064 46,472 45,707 47,424 2.0% CapitalOutlay --------- TOTALEXPENDITURES 45,829$49,594$47,426$49,022$48,257$50,724$3.5% 115 NATIONALGUARD DEPARTMENT:NationalGuard SUPERVISOR:ProjectCoordinator FUND#:101 ACTIVITY#:42701 ACTIVITYSCOPE: TheNationalGuardfacilityishousedintheMonticelloCommunityCentercomplex.Thecitywill maintainthefacilityinperpetuityinreturnforaone-timepaymentin1998thathelpedfund constructionofthecommunitycenter.TheGuardprovidesnodirectservicestothecity. OBJECTIVES: 1.Tomaintainaclean,modernfacilityforusebytheNationalGuard. ISSUES: 1.TherearenocurrentissuestomaintainingtheNationalGuardfacility. MEASURABLEWORKLOADDATA: Measurement 2010 2011 2012 2013 2014 Notapplicable BUDGETCOMMENTARY: TheNationalGuardoperatesasecuritydivisionwithintheMonticelloCommunityCentercomplex. ThecitymaintainstheGuard’ssitewithinthecomplex.Thebudgetforthisactivityisrelativelystatic. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % NATIONALGUARD Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 211 187 -300 300 300 0.0% OtherServices&Charges 20,457 14,100 14,517 21,950 16,750 16,750 -23.7% CapitalOutlay --------- TOTALEXPENDITURES 20,668$14,287$14,517$22,250$17,050$17,050$-23.4% 116 PUBLICWORKS-ADMINISTRATION DEPARTMENT:PublicWorks SUPERVISOR:PublicWorksDirector FUND#:101 ACTIVITY#:43110 ACTIVITYSCOPE: Publicworks(PW)administrationactivityoverseesthedailyoperationsofthestreet,parks,water, sewer,wastewatertreatmentplant,andinspectionactivities.PWadministrationalsomanagesall largecityprojectsandimplementsallchangestoPWoperationsandpolicy. OBJECTIVES: 1.Continuetheimplementationofabio-solidsmanagementsystem. 2.Implementthemajorstreetlightingprojectplan. 3.Continueimplementingthewellheadprotectionplan. 4.Managethedevelopmentofanewpublicworksfacilityandexpansionofthewastewater treatmentplant. 5.Determinelocationforfuturewellsutilizinginformationgatheredfromvarious sourcesincludinggrants. 6.Developaprogramtoleaseantennaspaceonelevatedwatertowers,thusgenerating anewrevenuesource. 7.ImplementanewSCADAsystemasbudgetedinthewaterandsewageoperating funds. ISSUES: 1.Balancethepublicworksdepartmentneedswithavailablefunds. 2.Manageofcity'swastewatertreatmentsystem. 3.Implementacapitalimprovementprogramforcityinfrastructure. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Budgetunits 15 15 15 15 15 Employeessupervised-FT 19 19 19 19 20 117 BUDGETCOMMENTARY: The2013decreaseinpersonnelservicesreflectsthenon-replacementofthepublicworksdirector. Theincreaseinotherservicesandchargesreflectsthere-allocationofinsurance(property,liability andvehicle)expenses.Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of- livingincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-ADMINISTRATION Actual Actual Actual Budget Projected Budget Change PersonnelServices 170,955$158,837$97,647$87,419$87,419$91,277$4.4% Supplies 3,084 3,514 2,992 4,300 3,850 4,050 -5.8% OtherServices&Charges 7,600 14,106 13,243 27,571 27,724 28,253 2.5% CapitalOutlay --------- TOTALEXPENDITURES 181,639$176,457$113,882$119,290$118,993$123,580$3.6% 118 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. 7.Reviewdevelopmentplansandagreements. 8.ContinuetoworktowardsimprovingtransportationsystemandcollaboratewithMNDOT andWrightCounty. 9.Preparecapitalinfrastructureplanningandbudgeting. 10.Integratewithotherdepartmentsonpublicimprovementprojectsanddevelopmentplans. 11.Trackandapplygrantsandfundingforimprovementprojects. ISSUES: 1.IncreasingrestrictionsbyMinnesotaPollutionControlAgency(MPCA)forstormwater runoff. 2.Lackofpublicknowledgeregardingpurposesandpracticesassociatedwithconservation anddrainageeasementsandstormwaterponds. 3.IncreasingphosphorusrestrictionsbyMPCAforwastewatereffluent. 4.Reductioninavailablefederalandstatefundingfortransportationimprovements. 119 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Servicerequests 85 10 10 10 10 On-lineservicerequests 70 10 7 5 5 Activeimprovementprojects 8 10 10 10 10 Drivewaypermitsissued 8 3 2 1 2 Right-of-waypermitsissued 74 127 131 116 120 Developmentapplications 10 10 10 Gradingpermitsissued 2 10 3 6 8 BUDGETCOMMENTARY: Theengineeringactivitypredominantlyconsistsofengineeringandotherprofessionalservicefees. Theseexpendituresconsistofbothreimbursableandnon-reimbursableexpenditures.For2014,the engineeringbudgetdecreasedsubstantiallywiththeeliminationoftwopositions.Consequently, professionalservicesincreasedtooffsetmuchofsavingsrealizedbyeliminationofthetwopositions. The2015budgetprovidesforcontinuedimprovementsanddevelopmentofthecity'sGISsystem. Finally,the2015budgetincludesmoneyforanI-94interchangestudy. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-ENGINEERING Actual Actual Actual Budget Projected Budget Change PersonnelServices 134,793$152,714$112,148$6,635$17,515$389$-94.1% Supplies 58 529 899 150 150 150 0.0% OtherServices&Charges 85,227 47,044 110,981 130,131 135,131 168,969 29.8% CapitalOutlay --------- TOTALEXPENDITURES 220,078$200,287$224,028$136,916$152,796$169,508$23.8% 120 PUBLICWORKS-INSPECTIONS DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer FUND#:101 ACTIVITY#:43115 ACTIVITYSCOPE: Thepublicworksinspectionactivityisresponsibletodesignandinspectcityinfrastructureprojects, andtoreviewandapproveright-of-wayexcavation/obstructionpermitapplications.Personnelare alsoresponsibleformanagingrecordsretentionforplats,citymaps,infrastructuredatabases,soil borings,developmentplans,andas-built.Usingvariouscomputersoftwareprogramsincluding ArcGIS,AutoCADmandCarteGraph,staffprovidesdesignandmappingassistance. OBJECTIVES: 1.Improvestaffuseofthecity'sGISsystemthroughtraining. 2.Maintaincertificationsandattendappropriateclassesandworkshopsforinspections. 3.Providesupportfortheengineeringactivity. 4.Improvecommunicationbetweenpublicworks,engineeringandinspectionactivities. 5.Improveknowledge,skills,andabilityinusingCarteGraphsoftwarefordevelopment ofanin-housePavementManagementandSignProgram. 6.Improveknowledge,skills,andabilityinusingGISsoftwareforassistingother departmentswiththeirmappingneeds. 7.Assistothercitydepartmentsinacquiringutilityinformationnotreadilyavailable fromothersources,includingGIS. 8.Assistwithdesignandimplementationofsolutionstodrainageissues. 9.Completecostestimatesanddesignforsmallimprovementprojects. 10.Completecostestimateforbudgetingpurposesforupcomingimprovementprojects. 11.Completeinspectionsanddocumentationforcity’sSWPPP. ISSUES: 1.Accesstocityvehicleshousedincoldstorageatpublicworksisdifficult,limitingability toquicklyrespondtoissues. 2.WorkloadandbudgetissuescreatedbymandatoryMPCAcompliance requirementsinrelationtocitySWPPP. 121 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Projectinspectionshours 1,200 1,400 1,400 1,400 1,400 Projectpre-designhours 80 800 800 800 800 Snow&Iceremoval 8 10 10 10 10 Projectfile/planscanning 150 200 200 200 200 Excavationpermitapps 40 50 50 50 50 Designreview/updates 30 40 40 40 40 Mapplottings 84 100 100 100 100 Estimates BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Theprior yearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).Suppliesdeclinedwithactivity.Otherbudgetitemsare expectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-INSPECTIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 37,653$57,701$43,329$69,018$69,018$76,085$10.2% Supplies 3,086 4,194 1,908 7,450 6,950 5,900 -20.8% OtherServices&Charges 5,010 2,932 9,641 17,560 17,110 14,967 -14.8% CapitalOutlay --------- TOTALEXPENDITURES 45,749$64,827$54,878$94,028$93,078$96,952$3.1% 122 PUBLICWORKS–STREETS&ALLEYS DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43120 ACTIVITYSCOPE: Theforemostresponsibilityofthestreetsandalleysactivityistoperformthenecessarytasksto reducethedepreciationofthecitystreetsandupholdthedesirablestandardsofappearance, serviceability,andsafety.Thisincludesupkeepsuchasstreetsweeping,repairofroadwaysurface areas,medians,sidewalks,boulevards,alleys,catchbasins,andstormsewers. OBJECTIVES: 1.Continuestreetreconstructionofolderroadsurfacesbyevaluatingroadwear. 2.Increasestreetchipsealcoatingprojects. 3.Maintainandupdateequipmentandvehicles. 4.HelpmaintainanduseCityGISsystem. 5.Continuestreetcracksealingprogram. ISSUES: 1.Educatethepubliconwhattheboulevardsaretobeusedfor. 2.Educatingthepubliconstormwateroperations. 3.Increasedcostsoffuelandstreetproductsduetofuelcosts. 4.Educatethepubliconthevalueofgoodmaintenanceprogramsforour infrastructure. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Poundsofcracksealer 15,000 23,100 23,100 23,282 22,900 Sq.yardsofchipsealing 60,000 78,500 78,500 82,429 10,000 Milesofstreets 68.0 68.0 68.0 68.0 68.0 Tonsofblacktoppatching 200 193 193 190 200 123 BUDGETCOMMENTARY: Partoftheincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservices andinsurances(property,liabilityandvehicle).Contractedstreetrepairsandmaintenance,under otherservicesandcharges,increasedto$165,000in2015.Therenewedemphasisonstreet maintenancebeganin2014.An$8,000increaseforsmalltoolsandequipmentaidedthe6%risein thesuppliesbudget.Thepersonnelservicesbudgetincludesafullstepincreasewitha3%cost-of- livingincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-STREETS&ALLEYS Actual Actual Actual Budget Projected Budget Change PersonnelServices 376,192$397,902$371,891$445,583$445,583$440,744$-1.1% Supplies 145,336 152,142 167,792 173,050 173,050 183,050 5.8% OtherServices&Charges 78,631 105,126 117,428 221,317 219,152 215,113 -2.8% CapitalOutlay 15,677 -31,935 35,200 35,200 37,500 6.5% TOTALEXPENDITURES 615,836$655,170$689,046$875,150$872,985$876,407$0.1% 124 PUBLICWORKS–ICE&SNOWREMOVAL DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43125 ACTIVITYSCOPE: Thecity'siceandsnowremovalactivityisresponsibleforthecontroloficeandsnowoncitystreets, sidewalksandcity-ownedpublicparkinglots.Theactivityprovidescontrolinasafeandcosteffective manner,keepinginmindsafety,budget,personnel,andenvironmentalconcerns. OBJECTIVES: 1.Maintainandupdateequipmentandvehiclesinatimelymanner. 2.Learnwaystoeffectivelyusethecity'sGISsystem. ISSUES: 1.Staffingandbudgetingforunpredictablecircumstances. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Inchesofsnow 75 29 29 79 50 Plowingevents,numberof 30 7 7 18 15 Tonsofsaltused 450 325 325 385 700 Tonsofsandused 600 370 370 600 300 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels.Thecityplanstoincreasesaltusage anddecreasesandusagein2015. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-ICE&SNOW Actual Actual Actual Budget Projected Budget Change PersonnelServices 103,638$76,146$128,679$145,298$145,298$144,987$-0.2% Supplies 69,686 52,804 79,182 88,500 88,500 103,000 16.4% OtherServices&Charges 518 4,243 2,691 3,338 3,338 2,697 -19.2% CapitalOutlay --------- TOTALEXPENDITURES 173,842$133,193$210,552$237,136$237,136$250,684$5.7% 125 PUBLICWORKS–SHOP&GARAGE DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43127 ACTIVITYSCOPE: Shop&Garagemaintainsallcityvehiclesandequipmentforthestreets,ice&snow,parks,waterand Sewageactivitiesinasafeandefficientmanner. OBJECTIVES: 1.Maintainequipmentandvehiclestomaximizeefficienciesandsafety. 2.Updateequipmentandvehicles. ISSUES: 1.Agingequipment. 2.Increasedsafetyregulationforequipmentandvehicles. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Serviceorders 96 86 85 85 85 Serviceorderhours 262 371 274 351 325 Hoursperserviceorder 2.7 4.3 3.2 4.1 3.8 Totalserviceordercosts $12,321 $14,662 $16,204 $21,576 $25,000 Servicecostperorder $128.34 $170.49 $190.64 $253.84 $294.12 Repairorders 75 82 60 52 60 Repairhours 238 243 156 205 215 Hoursperrepairorder 3.2 3.0 2.6 3.9 3.6 Totalrepairordercosts $18,534 $22,755 $29,818 $28,719 $30,000 Repaircostsperorder $247.12 $277.50 $496.97 $552.29 $500.00 126 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Other budgetitemsareexpectedtoremainclosetoprioryearlevels.Thecityhasawide-varietyoftalentin thePublicWorksDepartment.Mostarecapableofassistingatruecraftsman,thecity’shighly-skilled chiefmechanic. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-SHOP&GARAGE Actual Actual Actual Budget Projected Budget Change PersonnelServices 104,360$104,605$98,445$92,301$92,301$91,162$-1.2% Supplies 40,758 39,300 44,180 39,000 39,000 44,100 13.1% OtherServices&Charges 40,073 75,741 44,116 59,282 56,782 59,548 0.4% CapitalOutlay --------- TOTALEXPENDITURES 185,191$219,646$186,741$190,583$188,083$194,810$2.2% 127 PUBLICWORKS–STORMWATER DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer FUND#:101 ACTIVITY#:43130 ACTIVITYSCOPE: Stormwaterisresponsibleforexpendituresrelatedtothemaintenanceofthecity'sstormwatersystem. Thisactivityincludesinspecting,cleaningandrepairingallstormwatertrunklines,ditches,andponds. OBJECTIVES: 1.Monitor,repair,andcleanstormwatertrunklines,laterals,structures,ditches,holding pondsandstructuralpollutioncontroldevices. ISSUES: 1.Continueddeteriorationofstormwatersystem,withoutproperfundingforrepairs, replacementorimprovements. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Stormwatermainmiles 1/4city 1/4city 1/4city 1/4city 1/4city Cleanseptormanholes 4 4 4 4 4 GPSstormstructures 1/4city 1/4city 1/4city 1/4city 1/4city Stormwatermanhole maintenance 1/4city 1/4city 1/4city 1/4city 1/4city Stormwatermainlocates 100 100 100 100 100 BUDGETCOMMENTARY: The2015budgetforthestormwateractivityisforgeneralmaintenanceofthecity'sstormwater system.ThecleaningandrestorationofholdingpondswillbepaidfromtheStormWaterAccess Fundin2014.Theincreaseinotherservicesandchargesreflectstheadditionof$40,000forannual repairsandmaintenance.Priorto2015,suchexpendituresweremadefromtheStormwaterAccess Fund.Thepersonnelservicesbudgetincludesafullstepincreasewitha3%cost-of-livingincrease. Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. 128 BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-STORMWATER Actual Actual Actual Budget Projected Budget Change PersonnelServices 12,705$18,451$9,331$22,490$22,490$22,518$0.1% Supplies 2,115 2,068 1,466 6,000 5,050 7,000 16.7% OtherServices&Charges 1,733 30,949 1,267 4,650 4,650 43,650 838.7% CapitalOutlay --------- TOTALEXPENDITURES 16,553$51,468$12,064$33,140$32,190$73,168$120.8% 129 PUBLICWORKS–PARKINGLOTS DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43140 ACTIVITYSCOPE: Parkinglotsactivityisresponsibleforreducingthedepreciationofthecity-ownedparkinglots.This includespatching,striping,repairing,andresurfacingasneeded. OBJECTIVES: 1.Monitorparkinglotsandpatchandstripeasneeded. 2.Continueaddinglandscapingfeaturestoparkingareas. ISSUES: 1.Fundingreplacementorrepairsandmaintenancetodeterioratingparkingareas. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 City-ownedparkinglots 5 5 5 5 5 BUDGETCOMMENTARY: Theparkinglotsadoptedbudgetissimilartoprioryears.Repairandmaintenanceisdoneasneeded. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-PARKINGLOTS Actual Actual Actual Budget Projected Budget Change PersonnelServices 826$260$1,001$1,703$1,703$1,703$0.0% Supplies 284 -340 3,000 4,000 3,000 0.0% OtherServices&Charges 10,638 4,308 1,624 4,600 3,100 4,700 2.2% CapitalOutlay --------- TOTALEXPENDITURES 11,748$4,568$2,965$9,303$8,803$9,403$1.1% 130 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.Maintenanceandupgradesonagingsignalsystemsandstreetlights. 4.LackofassistancefromWrightCountyandMNDOT. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Streetlightsmaintained 126 150 150 150 162 Streetscapelights 50 50 50 60 60 BUDGETCOMMENTARY: Electricitycostsforthestreetlightsarethelargestexpenditureat$177,000.Theremainingfundsare forrepairandmaintenanceorsupplies. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PW-STREETLIGHTING Actual Actual Actual Budget Projected Budget Change PersonnelServices -$3,793$2,795$-$3,600$-$--- Supplies 1,271 2,349 3,195 10,000 10,000 10,000 0.0% OtherServices&Charges 204,715 190,637 200,015 212,500 205,000 219,500 3.3% CapitalOutlay --------- TOTALEXPENDITURES 205,986$196,779$206,005$222,500$218,600$229,500$3.1% 131 PUBLICWORKS–REFUSECOLLECTION DEPARTMENT:PublicWorks SUPERVISOR:RefuseCollection FUND#:101 ACTIVITY#:43230 ACTIVITYSCOPE: Thecitycontractswithaprivatecompanyforresidentialrefusecollectionandrecyclingservices. OBJECTIVES: 1.Researchexpandingcityhaulerscontractedservicepricestobusinessanddeterminethe percentageofparticipationtoachieveadesirablerate. ISSUES: 1.Wearandtearoncitystreets. 2.Expiringcontractwithprivatehauler. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Residentialrefusecollections 52 52 52 52 52 Residentialrecyclingcollections 26 26 26 26 26 Residentialcontainerbase 3,721 3,745 3,736 3,772 3,800 Additionalcontainers 453 453 479 603 600 Recyclingcontainers 4,183 4,206 4,220 4,277 4,300 BUDGETCOMMENTARY: Thecity'srefusehaulertookovertherecyclingandgarbagecartmaintenanceandreplacementin 2010,resultinginalowerbudgetforpersonnelservicesandsupplies.Thebalanceofthebudgetis basedonthecity’scontractwithitsrefusehauler,whichexpiresontheMay31,2015. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % REFUSECOLLECTION Actual Actual Actual Budget Projected Budget Change PersonnelServices -$719$-$1,037$1,037$1,037$0.0% Supplies -132 197 1,100 1,100 100 -90.9% OtherServices&Charges 495,693 499,186 505,799 519,260 519,260 587,154 13.1% CapitalOutlay --------- TOTALEXPENDITURES 495,693$500,037$505,996$521,397$521,397$588,291$12.8% 132 COMMUNITYCELEBRATIONS DEPARTMENT:RecreationandCulture SUPERVISOR:CommunityDevelopmentDirector FUND#:101 ACTIVITY#:45130 ACTIVITYSCOPE: Thecommunitycelebrationsactivitycoordinatesandparticipatesincitycelebrations,sharingtheholiday spiritthroughoutthecommunity. OBJECTIVES: 1.VaryactivitiesandincreasetheparticipationofWalk'n'Roll. 2.ExpandoncitypresenceandinformationatWalk'n'Roll. 3.Maintainholidaydecorationsthroughoutthecity. 4.ResearchinvolvementinswanfeedingandSwanParkactivitiesinconjunctionwiththe chamberofcommerce. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Walk&Rollparticipants 700 750 750 750 750 Businessbooths,numberof 60 70 70 70 70 BUDGETCOMMENTARY: ThecommunitycelebrationsbudgetincludesexpendituresforWalk'n'Roll,theRiverfestBlockParty, andtomaintainholidaydecorations. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % CELEBRATIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 0 0 0 0 0 0 --- OtherServices&Charges 39 5,165 1,186 3,300 3,300 3,300 0.0% CapitalOutlay 0 0 0 0 0 0 --- TOTALEXPENDITURES 39$5,165$1,186$3,300$3,300$3,300$0.0% 133 SENIORCENTER DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45175 ACTIVITYSCOPE: TheseniorcenterfacilityishousedintheMonticelloCommunityCentercomplex.Thefacilityis maintainedbycity,butseniorcentermanagementisprovidedbyanoutsideentity. OBJECTIVES: 1.Maintainaclean,modernfacilityforusebyMonticello’sseniorcitizens. 2.Engageseniorcitizenstoparticipateinothercommunitycenteractivities. ISSUES: 1.Declineinrevenuefromsourcesotherthanthecity. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Outcomes/Effectiveness Volunteershours 7,511 8,058 7,945 8,022 8,100 Dinnersserved 5,923 5,347 4,223 1,988 2,000 Efficiency: Duplicatedparticipants peractivity 19 19 19 19 20 Unduplicatedparticipants peractivity 161 166 165 170 173 WorkLoad: Unduplicatedparticipants 2,102 2,123 2,164 2,214 2,250 Duplicatedparticipants 17,334 18,266 18,522 19,325 19,000 Receivedphonecalls 4,7904,7274,7904,4594,500 Activitiesoffered 108 110 112 114 110 BUDGETCOMMENTARY: Theseniorcenterrentsspacewithinthecommunitycentercomplex.Thecitymaintainsandinsures theseniorcenter.Additionally,thecitygivesanannualcontributiontothegroupmanagingthe seniorcenter.The2015adoptedcontributionis$55,000,which$2,500greaterthan2014budget. 134 Thecityisalsoincreasingtheinternalrentpaidtothecommunitycenterby$5,000(from$30,000to $35,000)forthespaceoccupiedbytheseniorcenter.Theincreasedrentoffsetsaone-time,$5,000 contributiontotheseniorcenterforfloorreplacementin2014. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % SENIORCENTER Actual Actual Actual Budget Projected Budget Change PersonnelServices -$1,285$796$547$1,424$547$0.0% Supplies --------- OtherServices&Charges 93,171 87,156 89,423 96,475 94,725 99,375 3.0% CapitalOutlay --------- TOTALEXPENDITURES 93,171$88,441$90,219$97,022$96,149$99,922$3.0% 135 TRANSIT DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45178 ACTIVITYSCOPE: Dial-a-ridebusservice,providedbycontractthroughRiverRiderBusCompany,istheonlytransitactivity subsidizedbythecity. OBJECTIVES: 1.Researchotherlessexpensivealternativestoexistingprovider. 2.Evaluateserviceenhancementswithinthecontextofothertransportationoptions, includingtheNorthstarcommuterrailsystem. 3.ReviewinvolvementinstudyforI-94commuterserviceoptions. ISSUES: 1.RelativelylowridershipforacitythesizeofMonticello. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Adultrides 1,984 1,435 1,8792,0002,000 60+rides 2,720 3,159 3,001 3,000 3,000 Disable/wheelchairrides 146 636 780 600 600 Studentrides 1,7681,0551,481 1,500 1,500 BUDGETCOMMENTARY: Thecitywasforcedtochangeitstransitservicesproviderin2014.Thenewproviderchargesaflat $40,000regardlessofridership. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % TRANSIT Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges ---3,000 7,000 40,000 1233.3% CapitalOutlay --------- TOTALEXPENDITURES -$-$-$3,000$7,000$40,000$1233.3% 136 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.Increaseinmaintenancecostswithacquisitionofmoreparkland. 2.Coordinationwithotherentitiesregardingparkuseanddesign. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Parklandacresmaintained 180 180 180 180 200 Trailmilesmaintained 16.516.516.5 16.5 17.5 Parkeventsheld 130 150 150 150 155 Winterskatingdays 90 125 125 125 135 BUDGETCOMMENTARY: Theparksbudgetconsistsofexpendituresneededtomaintaincityparksandtrails.Exceptforcapital outlays,the2015budgetisconsistentwiththe2014budgetandpastexpenditurelevels.In2013, capitaloutlayreflectstheacquisitionofmowersandothercapitalequipmentthroughtheCentral Equipmentinternalservicefund.In2015,theboostisattributabletoadditionalCentralEquipment Fundpurchasesandchangingthewayrecurringpathwaysimprovementsarefinanced.Priorto2015, theannualimprovementstopathwayswerefinancedthroughtheParkandPathwayDedication Fund.The2014increaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).Thepersonnelservicesbudgetincludesafull 137 stepincreaseanda3%cost-of-livingincrease.Otherbudgetitemsareexpectedtoremaincloseto prioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PARK-OPERATIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 359,055$360,575$361,526$433,219$433,219$453,759$4.7% Supplies 84,113 111,325 110,566 114,775 114,075 119,725 4.3% OtherServices&Charges 115,988 56,101 73,293 116,441 115,491 128,841 10.6% CapitalOutlay --27,600 32,400 32,400 101,000 211.7% TOTALEXPENDITURES 559,156$528,001$572,985$696,835$695,185$803,325$15.3% 138 PARKBALLFIELDS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45203 ACTIVITYSCOPE: Theparkballfieldsactivitypreparesandmaintainscityathleticfields,includingtheNSPBallfield. OBJECTIVES: 1.Prepareandmaintaincityathleticfields. 2.Improvethestructuresattheballfields. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Ballgamesplayed,numberof 580 600 600 600 600 Fieldsmaintained 4 4 4 4 4 Numberoftimesmowed 50 50 50 50 50 BUDGETCOMMENTARY: The2015budgetreflectpastexpenditurelevelsandissimilartothe2014budgetformaintainingthe fieldsandconcessionactivitiesplusincreasesparkactivities.Capitaloutlayexpendituresin2015are fordugoutroofsattheXcelballfields. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % PARK-BALLFIELDS Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 8,302 5,744 8,829 14,850 19,050 15,850 6.7% OtherServices&Charges 10,244 23,675 16,688 11,950 9,450 11,950 0.0% CapitalOutlay ---6,000 2,000 5,000 -16.7% TOTALEXPENDITURES 18,546$29,419$25,517$32,800$30,500$32,800$0.0% 139 SHADETREE DEPARTMENT:RecreationandCulture SUPERVISOR:ParkSuperintendent FUND#:101 ACTIVITY#:46102 ACTIVITYSCOPE: ShadeTreesupportsplantingandmaintainingtreesandshrubberywithinthecitylimits.Thisactivity providesforregulating,developing,planting,maintaining,andremovingoftreesinanystreet,park,right- of-wayorotherpublicplace.Shadetreesaidthelargergoalofsoilconservation,climatemoderation,air quality,noise,etc.Thebudgetprovidesthemechanismsforfundingauniformprogramforthepurpose ofbeautifyingthecommunityasawhole,andincreasingpropertyvalues. OBJECTIVES: 1.Providetreesforspringtreeplanting. 2.ContinuewithShadeTreeDiseaseControlProgram. 3.ReplacedeadanddiseasedtreesthroughouttheCityandParks. 4.Continuechippingprogram. 5.Continueeducationprogram. 6.Beginaboulevardtreeplantingprogram. ISSUES: 1.Stressontreescausedbyweatheranddiseases. 2.Fundingavailability. 3.Chipperreplacement. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Treesplanted 265 450 450 450 450 Treesremoved 225 200 200 200 150 Studentsinprograms 400 425 425 425 550 140 BUDGETCOMMENTARY: AportionofthetotaltimeofparkemployeesisallocatedtotheShadeTreeactivity.Thepersonnel servicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Otherbudgetitemsare expectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % SHADETREE Actual Actual Actual Budget Projected Budget Change PersonnelServices 36,646$32,228$41,621$36,545$36,545$36,599$0.1% Supplies 3,554 15,931 9,260 9,450 19,450 11,125 17.7% OtherServices&Charges 4,279 4,824 2,594 6,074 6,074 10,904 79.5% CapitalOutlay --------- TOTALEXPENDITURES 44,479$52,983$53,475$52,069$62,069$58,628$12.6% 141 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 2011 2012 2013 2014 2015 Checkedoutitems 222,886 237,938 236,220199,182200,000 Numberofrequestsplaced 12,205 11,572 11,481 11,168 11,000 Summerreadingparticipants 719 891 840 808 800 Patronsusingwireless 1,902 2,309 2,270 3,021 3,000 Patronsusinginternetstations 13,573 9,809 9,193 9,002 9,000 Programsoffered 156 149 173 169 160 Programparticipantsenrolled 4,2983,7613,773 3,788 3,800 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloLibrary.ThecitycontractswithGreatRiverRegionalLibrary Systemforallinformationsourcesandoperations.Thecityownsandmaintainsthebuildingthe libraryishousedinandfundssomeyouthprograms.The2015budgetissimilartothe2014budget andpastexpenditures.Bystatute,thecitymustannuallyexpendatleast$34,927forthelibrary. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % LIBRARY Actual Actual Actual Budget Projected Budget Change PersonnelServices 6,944$5,819$8,259$9,137$8,637$9,137$0.0% Supplies 1,562 2,503 2,001 1,900 1,900 1,900 0.0% OtherServices&Charges 27,781 21,393 25,135 27,911 28,011 28,925 3.6% CapitalOutlay --------- TOTALEXPENDITURES 36,287$29,715$35,395$38,948$38,548$39,962$2.6% 142 INSURANCE DEPARTMENT:Other SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:49240 ACTIVITYSCOPE: ThisactivityaccountsforavarietyofundistributedGeneralFundinsurancescosts. OBJECTIVES: 1.Toaccuratelydistributeinsurancecoststoallactivitiesbyfund. ISSUES: 1.Purchasingtheproperlevelofinsurancecoveragewiththeappropriatedeductiblesatthe lowestpossiblecosts. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: In2014,otherservicesandchargesdecreasedsignificantlyfromtheredistributionofinsurancecosts throughoutthevariousbudgetunitsintheGeneralFund.Aneffectivesafetyprogramadministered bythehumanresourcemanagerhasresultedinadeclineofworkerscompensationinsurancecosts. Additionally,liabilityinsurancedecreasedslightlyandpropertyinsuranceincreasedslightly. BUDGET: GENERALFUND 2011 2012 2013 2014 2014 2015 % INSURANCE Actual Actual Actual Budget Projected Budget Change PersonnelServices 71,972$69,712$53,568$-$-$-$--- Supplies --------- OtherServices&Charges 178,015 164,005 74,142 9,016 9,016 7,329 -18.7% CapitalOutlay --------- TOTALEXPENDITURES 249,987$233,717$127,710$9,016$9,016$7,329$-18.7% 143 Thispageintentionallyleftblank 144 ENTERPRISE FUNDS ForFiscalYear2013 SPECIAL REVENUE FUNDS SPECIALREVENUEFUNDS-SUMMARY DESCRIPTION Thecitycurrentlyhasfiveactivespecialrevenuefunds.Specialrevenuefundsareusedtoaccountforthe proceedsofspecificrevenuesourcesthatarerestrictedorcommittedtoexpendituresforspecificpurposes otherthandebtserviceorcapitalprojects.UnliketheGeneralFund,thebudgetsofspecialrevenuefundsdo notalwaysbalance--revenuesequalexpenditures.Specialrevenuefundsusethemodifiedaccrualbasisof accountingforbothfinancialreportingandbudgetingpurposes. BUDGETISSUES Eachspecialrevenuefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY SPECIALREVENUEFUNDS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 1,048,883$1,197,239$1,181,335$1,390,000$1,390,000$1,363,000$-1.9% TaxIncrements 1,050,563 1,052,110 992,339 672,494 728,618 726,215 8.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,216,779 1,125,968 1,292,276 1,374,550 1,357,834 1,416,100 3.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 567,685 396,677 123,368 253,472 249,222 304,918 20.3% OperatingTransfers -850,000 267,000 143,000 143,000 94,900 -33.6% DebtProceeds --------- TOTALREVENUES 3,883,910$4,621,994$3,856,318$3,833,516$3,868,674$3,905,133$1.9% EXPENDITURES PersonnelServices 973,156$943,772$975,181$1,014,000$1,014,000$1,018,942$0.5% Supplies 213,186 174,721 278,728 244,275 244,275 262,171 7.3% OtherServices&Charges 911,296 592,105 551,670 583,175 583,175 606,988 4.1% CapitalOutlay 525,977 2,096,072 729,217 415,943 440,260 428,786 3.1% OperatingTransfers 1,131,279 1,589,264 1,654,804 1,318,353 1,318,353 1,276,900 -3.1% TOTALEXPENDITURES 3,754,894$5,395,934$4,189,600$3,575,746$3,600,063$3,593,787$0.5% FUNDBALANCE-JANUARY1 $9,371,389 9,500,405$8,726,465$8,393,183$8,393,183$8,661,794$ Excess(Deficiency)of RevenuesoverExpenditures 129,016 (773,940)(333,282)257,770 268,611 311,346 FUNDBALANCE-DECEMBER31 9,500,405$8,726,465$8,393,183$8,650,953$8,661,794$8,973,140$ 145 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.Therearecurrently12activetax 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. 146 MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Taxincrementscollected 1,050,563$1,052,110$992,339$728,618$726,215$ ActiveTIFDistricts 15 13 12 12 12 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloEconomicDevelopmentAuthorityprogramsandgeneral administrationactivities.Thedetailofeachindividualtaxincrementfinancingdistrictisincludedin theappendixofthisdocument.ThemainrevenuesourcefortheEDAFundistaxincrementsfrom thevariousdistricts.Expendituresincludeadministrationcosts,pay-as-you-gopaymentstothe variousdevelopmentprojectsandatransfertothedebtservicefundsforitsshareofthe2005 improvementbond,whichfinancedaninterchangeprojectwithinataxincrementdistrict.Thefuture declineintaxincrementsistheresultofTIFdistrictdecertificationorindividualparceldecertification. BUDGET: EDAFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE TaxIncrements 1,050,563$1,052,110$992,339$672,494$728,618$726,215$8.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 430,327 293,157 113,821 202,414 202,414 225,360 11.3% OperatingTransfers --92,000 93,000 93,000 94,900 2.0% TOTALREVENUES 1,480,890$1,345,267$1,198,160$967,908$1,024,032$1,046,475$8.1% EXPENDITURES PersonnelServices 25,864$13,906$3,116$12,006$12,006$12,804$6.6% Supplies -1,170 ------- OtherServices&Charges 465,790 214,618 169,990 108,655 108,655 120,624 11.0% CapitalOutlay 434,460 433,406 651,752 321,943 346,260 349,786 8.6% OperatingTransfers 316,279 699,264 779,804 278,353 278,353 271,900 -2.3% TOTALEXPENDITURES 1,242,393$1,362,364$1,604,662$720,957$745,274$755,114$4.7% FUNDBALANCE-JANUARY1 7,240,154$7,478,651$7,461,554$7,055,052$7,055,052$7,333,810$ Excess(Deficiency)of RevenuesoverExpenditures 238,497 (17,097)(406,502)246,951 278,758 291,361 FUNDBALANCE-DECEMBER31 7,478,651$7,461,554$7,055,052$7,302,003$7,333,810$7,625,171$ 147 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 2011 2012 2013 2014 2015 Plotoccupied 3,449 3,470 3,477 Plotsreserved 765 765 750 Plotsavailableforsale 1,066 1,048 1,028 Numberofplotssold 17 14 9 19 20 Numberofinternments 21 23 15 36 35 Numberofmarkersstaked 15 11 13 27 30 BUDGETCOMMENTARY: Therearenosubstantialchangestoeitherrevenuesorexpendituresfor2015.TheCemeteryfund wasreportedasanenterprisefundinthepriorbudgetyear. 148 BUDGET: RIVERSIDECEMETERY 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 22,390 19,810 12,913 24,800 24,800 24,800 0.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 1,821 963 (314)808 808 808 0.0% ContributedCapital --------- OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 24,211$20,773$12,599$25,608$25,608$25,608$0.0% EXPENDITURES PersonnelServices 6,845$6,602$2,197$4,073$4,073$4,073$0.0% Supplies 23 245 401 775 775 775 0.0% OtherServices&Charges 18,545 15,849 13,645 24,324 24,324 25,775 6.0% CapitalOutlay --------- OperatingTransfers --------- TOTALEXPENDITURES 25,413$22,696$16,243$29,172$29,172$30,623$5.0% FUNDBALANCE-JANUARY1 22,478$21,276$19,353$15,709$15,709$12,145$ Excess(Deficiency)of RevenuesoverExpenditures (1,202)(1,923)(3,644)(3,564)(3,564)(5,015) FUNDBALANCE-DECEMBER31 21,276$19,353$15,709$12,145$12,145$7,130$ 149 MINNESOTAINVESTMENTFUND DEPARTMENT:MinnesotaInvestmentFund SUPERVISOR:CommunityDevelopmentDirector FUND#:221 ACTIVITY#:46526-46528 ACTIVITYSCOPE: Followingstateandfederalguidelines,theMinnesotaInvestmentFundadministersloanstolocal businesses. OBJECTIVES: 1.TomatchavailablefundswithqualifyingbusinessesinMonticello. ISSUES: 1.NumberofqualifiedbusinessesinMonticello. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Loansoutstanding 0 0 0 0 0 BUDGETCOMMENTARY: Interestearnedoninvestments,notrepaymentofloans,istheonlyactivityanticipatedin2015. 150 BUDGET: MINNINVESTMENTFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 69,563 43,588 (14,840)25,000 25,000 25,000 0.0% OperatingTransfers --------- TOTALREVENUES 69,563$43,588$(14,840)$25,000$25,000$25,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- OperatingTransfers --------- TOTALEXPENDITURES -$-$-$-$-$-$--- FUNDBALANCE-JANUARY1 952,907$1,022,470$1,066,058$1,051,218$1,051,218$1,076,218$ Excess(Deficiency)of RevenuesoverExpenditures 69,563 43,588 (14,840)25,000 25,000 25,000 FUNDBALANCE-DECEMBER31 1,022,470$1,066,058$1,051,218$1,076,218$1,076,218$1,101,218$ 151 COMMUNITYCENTERFUND DEPARTMENT:CommunityCenter SUPERVISOR:CommunityCenterDirector FUND#:226 ACTIVITY#:45XXX ACTIVITYSCOPE: TheMonticelloCommunityCenterprovidesspaceforavarietyofrecreational,professional,and educationalopportunities.Expendituresforthecommunitycenteraredividedintothreeactivities: administration,programming,andNSPballfieldconcessions. OBJECTIVES: 1.Developaplanforthefutureuseoftheareawhichwasusedasawheelpark(skateboard, bike,androllerblade),includingdesign,financing,construction,andmarketing. 2.Developanon-lineregistrationsystemforprogramandmembershipsignup. 3.Providefacilityimprovementstoincreasecustomers. 4.Maintainthecommunitygarden. 5.Improveballfields. ISSUES: 1.Budgetconstraints. 2.Limitsduetofacilitysize,spaceavailability,andparkingavailability. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Customervisits,numberof 179,889 175,596 211,234 204,134 205,000 Grossprogramsales 168,569$162,227$192,708$184,125$185,000$ Rentalrevenue 178,492$166,374$163,329$200,964$205,000$ BUDGETCOMMENTARY: TherevenuebudgetforCommunityCenter-Administrationincludesallrevenuesforthefund.The largestrevenuesourceispropertytaxes($1,363,000in2015)andmemberships($810,000).Other revenuesincludeconcessionsales,roomrentals,andprogramfees.Thisactivityalsoincludesall personnelserviceexpendituresforthefund.The2014increaseinotherservicesandchargesreflects there-allocationofexpensesforITservicesandinsurances(property,liabilityandvehicle).The2015 personnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Otherbudget 152 itemsareexpectedtoremainclosetoprioryearlevels.The2014operatingtransferinwillbeused forgymfloorreplacementin2015.Theoperatingtransfersoutsupportdebtservice.Miscellaneous revenuesfor2015includetheNationalGuard’scontributiontoprojects. BUDGET: COMMUNITYCENTER 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 1,048,883$1,197,239$1,181,335$1,390,000$1,390,000$1,363,000$-1.9% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,194,389 1,106,158 1,279,363 1,349,750 1,333,034 1,391,300 3.1% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 65,974 58,969 24,701 25,250 21,000 53,750 112.9% OperatingTransfers -850,000 175,000 50,000 50,000 --100.0% TOTALREVENUES 2,309,246$3,212,366$2,660,399$2,815,000$2,794,034$2,808,050$-0.2% EXPENDITURES PersonnelServices 940,447$923,264$969,868$997,921$997,921$1,002,065$0.4% Supplies 213,163 173,306 278,327 243,500 243,500 261,396 7.3% OtherServices&Charges 426,961 361,638 368,035 439,579 439,579 460,589 4.8% CapitalOutlay 91,517 1,662,666 77,465 94,000 94,000 79,000 -16.0% OperatingTransfers 815,000 890,000 875,000 1,040,000 1,040,000 1,005,000 -3.4% TOTALEXPENDITURES 2,487,088$4,010,874$2,568,695$2,815,000$2,815,000$2,808,050$-0.2% FUNDBALANCE-JANUARY1 1,155,850$978,008$179,500$271,204$271,204$250,238$ Excess(Deficiency)of RevenuesoverExpenditures (177,842)(798,508)91,704 -(20,966)- FUNDBALANCE-DECEMBER31 978,008$179,500$271,204$271,204$250,238$250,238$ ADMINISTRATIONDIVISION: Administrationmanagesandtrackspayroll,maintenance,andallexpensesthatarebuildingwide, includingdebtservice,utilities,andinsurance.Thisisthegeneraloperatingactivityforthe communitycenter. COMMUNITYCENTER 2011 2012 2013 2014 2014 2015 % ADMINISTRATION Actual Actual Actual Budget Projected Budget Change PersonnelServices 940,447$923,264$969,868$997,921$997,921$1,002,065$0.4% Supplies 102,464 85,249 119,334 112,600 112,600 121,555 8.0% OtherServices&Charges 386,256 330,834 333,468 402,569 402,569 423,627 5.2% CapitalOutlay 74,261 1,662,666 77,465 24,000 24,000 79,000 229.2% OperatingTransfers 815,000 890,000 875,000 1,040,000 1,040,000 1,005,000 -3.4% TOTALEXPENDITURES 2,318,428$3,892,013$2,375,135$2,577,090$2,577,090$2,631,247$2.1% 153 PROGRAMMINGDIVISION: Thecommunitycenterprogrammingactivityprovideseducational,recreational,andprofessional activitiestoavarietyofusers.Theprogrammingactivitymanagesspecificcoststhatpertainto programsofferedatthecommunitycenter,aswellasexpendituresdirectlyattributableto programmedareasofthefacility,i.e.indoorplay,fitnessarea,andpool.Facilityconcession expendituresarealsoincluded. COMMUNITYCENTER 2011 2012 2013 2014 2014 2015 % PROGRAMMING Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 93,721 72,054 142,507 112,500 112,500 121,511 8.0% OtherServices&Charges 35,738 25,904 31,029 30,350 30,350 30,310 -0.1% CapitalOutlay 17,256 --70,000 70,000 --100.0% OperatingTransfers --------- TOTALEXPENDITURES 146,715$97,958$173,536$212,850$212,850$151,821$-28.7% NSPBALLFIELDCONSCESSIONSDIVISION: Ballfieldconcessionstrackstheexpenditures,exceptpayrollandemployeeexpenditures,forballfield concessions,whichatthistimeareonlylocatedattheNSP(Xcel)Ballfields.Concessionsprovide snackfoodsduringscheduledsoftball,baseball,andfootballgamesand/orpractices.Concession standrevenuesdonotcoverfullyallocatedexpenditures. COMMUNITYCENTER 2011 2012 2013 2014 2014 2015 % NSPBALLFIELD Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 16,978 16,003 16,486 18,400 18,400 18,330 -0.4% OtherServices&Charges 4,967 4,900 3,538 6,660 6,660 6,652 -0.1% CapitalOutlay --------- OperatingTransfers --------- TOTALEXPENDITURES 21,945$20,903$20,024$25,060$25,060$24,982$-0.3% 154 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2015 DEBT SERVICE FUNDS DEBTSERVICEFUNDS-SUMMARY DESCRIPTION Debtservicesfundsareusedtoaccountfortheaccumulationofresourcesforthepaymentofgenerallong- termdebt,excludingdebtissuedforandservicedbyanenterprisefund.Debtservicefundsusethemodified accrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecitycurrentlyhassixactive debtservicefunds. BUDGETISSUES Thecity'sbondratingwasdowngradedfromAa3toA2in2012byMoody'sInvestorServices.Thisratingwas affirmedwiththesaleofthecity’ssoledebtissuein2014.This$6,595,000G.O.issuehadtwocomponents: $6,080,000judgmentportionand$515,000capitalequipmentportion.Thejudgmentportionisaccountedfor inadebtservicefundandthecapitalequipmentportionisaccountedforintheCapitalEquipmentFund,an internalservicefund.Seeindividualfundsforthebudgetissuesfacingeachdebtservicefund.Thecityexpects toissuejudgmentbondsinthelatterhalfof2014tosettleclaimsrelatedtothetelecommunicationbonds. BUDGETSUMMARY DEBTSERVICEFUNDS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 1,088,381$1,260,284$1,196,912$1,263,000$1,263,000$1,290,000$2.1% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 1,143,683 1,047,949 1,016,419 756,375 1,414,908 769,225 1.7% Miscellaneous 253,172 236,018 203,389 230,200 230,200 223,300 -3.0% OperatingTransfers 3,119,180 3,747,326 4,291,481 3,478,988 3,963,988 2,409,836 -30.7% DebtProceeds 11,036,910 ---185,000 ---- TOTALREVENUES 16,641,326$6,291,577$6,708,201$5,728,563$7,057,096$4,692,361$-18.1% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --750 ------ CapitalOutlay --------- DebtService 6,236,985 6,464,930 16,912,832 6,064,853 5,957,053 5,620,651 -7.3% OperatingTransfers --------- TOTALEXPENDITURES 6,236,985$6,464,930$16,913,582$6,064,853$5,957,053$5,620,651$-7.3% FUNDBALANCE-JANUARY1 $2,721,906 13,126,247$12,952,894$2,747,513$2,747,513$3,847,556$ Excess(Deficiency)of RevenuesoverExpenditures 10,404,341 (173,353)(10,205,381)(336,290)1,100,043 (928,290) FUNDBALANCE-DECEMBER31 13,126,247$12,952,894$2,747,513$2,411,223$3,847,556$2,919,266$ 155 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. 2.Certifyorcollectdeferredspecialassessmentswhendevelopmentoccurs. ISSUES: 1.Maintainthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2007AG.0.ImprovementBondsincludespecialassessments, transfersfromthecity'sSewageFund,andpropertytaxes.Theonlyexpendituresareforthe2015 principalandinterestpaymentsforthisdebtissue. 156 BUDGET: 2007AIMPROVEMENTBOND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 396,736$431,051$427,447$540,000$540,000$420,000$-22.2% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 404,673 162,335 144,881 122,022 374,094 116,114 -4.8% Miscellaneous (24,623)(9,666)(2,872)------ OperatingTransfers -140,000 ------- DebtProceeds --------- TOTALREVENUES 776,786$723,720$569,456$662,022$914,094$536,114$-19.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --375 ------ CapitalOutlay --------- DebtService 686,400 623,670 625,115 736,100 628,300 621,800 -15.5% OperatingTransfers --------- TOTALEXPENDITURES 686,400$623,670$625,490$736,100$628,300$621,800$-15.5% FUNDBALANCE-JANUARY1 126,500$216,886$316,936$260,902$260,902$546,696$ Excess(Deficiency)of RevenuesoverExpenditures 90,386 100,050 (56,034)(74,078)285,794 (85,686) FUNDBALANCE-DECEMBER31 216,886$316,936$260,902$186,824$546,696$461,010$ REMAININGDEBTSERVICE: PayablePrincipal Interest Rate Total Principal Interest Principal Interest 2/1/2015 640,000$51,600$4.00%691,600$95,000$8,000$545,000$43,600$ 8/1/2015 38,800 38,800 6,100 -32,700 2/1/2016 665,000 38,800 4.00%703,800 100,000 6,100 565,000 32,700 8/1/2016 25,500 25,500 4,100 -21,400 2/1/2017 625,000 25,500 4.00%650,500 100,000 4,100 525,000 21,400 8/1/2017 13,000 13,000 2,100 -10,900 2/1/2018 650,000 13,000 4.00%663,000 105,000 2,100 545,000 10,900 Total 2,580,000$206,200$2,786,200$400,000$32,600$2,180,000$173,600$ GOBonds,Series2007A RevenuePortion(Sewage)Non-RevenuePortion 157 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. 2.Certifyorcollectdeferredspecialassessmentswhendevelopmentoccurs. ISSUES: 1.GenerationofrevenuesbytheCommunityCentertofundoperationsandrepaydebt servicewithaslowofpropertytaxlevyaspossible. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: RevenuesgeneratedbytheMonticelloCommunityCenterandatransferofpropertytaxessupport annualdebtservicepayments.Theonly2015expendituresareforprincipalandinterestpayments. 158 BUDGET: 2008AREVENUEREFUNDING 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 20,979 1,987 (1,330)500 500 500 0.0% OperatingTransfers 815,000 890,000 875,000 1,040,000 1,040,000 1,005,000 -3.4% DebtProceeds --------- TOTALREVENUES 835,979$891,987$873,670$1,040,500$1,040,500$1,005,500$-3.4% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --375 ------ CapitalOutlay --------- DebtService 1,102,080 1,100,880 1,074,120 1,037,860 1,037,860 1,001,260 -3.5% OperatingTransfers --------- TOTALEXPENDITURES 1,102,080$1,100,880$1,074,495$1,037,860$1,037,860$1,001,260$-3.5% FUNDBALANCE-JANUARY1 674,416$408,315$199,422$(1,403)$(1,403)$1,237$ Excess(Deficiency)of RevenuesoverExpenditures (266,101)(208,893)(200,825)2,640 2,640 4,240 FUNDBALANCE-DECEMBER31 408,315$199,422$(1,403)$1,237$1,237$5,477$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2015 985,000$15,760$3.20%1,000,760$ Total 985,000$15,760$1,000,760$ PublicProjectRefundingBonds,Series2008A 159 2008BG.O.SEWERREVENUEREFUNDINGBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:315 ACTIVITY#:47000 ACTIVITYSCOPE: The2008BG.O.SewerRevenueRefundingBondsrefinancedasewagetreatmentplant(WWTP) note.ThedebtserviceschedulecallsforFebruaryandAugustprincipalpaymentsandFebruaryand Augustinterestpaymentsthroughtheyear2018.ThebondscanbecalledonFebruary1,2016.The averageinterestrateis3.40%.RevenuesourcesincludetransfersfromtheSewerAccessFundand propertytaxes. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2008AG.O.SewerRevenueRefundingBondsincludeatransfer fromthecitySewerAccessFundandpropertytaxes.Theonlyexpendituresareforthe2014principal andinterestpaymentsforthisdebtissue. 160 BUDGET: 2008G.O.SEWERREFUNDING 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 410,446$517,039$502,889$500,000$500,000$500,000$0.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 46,178 19,319 (12,429)5,000 5,000 5,000 0.0% OperatingTransfers 524,590 450,000 450,000 450,000 850,000 340,000 -24.4% DebtProceeds --------- TOTALREVENUES 981,214$986,358$940,460$955,000$1,355,000$845,000$-11.5% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 1,049,179 1,048,486 1,050,216 1,049,593 1,049,593 1,048,942 -0.1% OperatingTransfers --------- TOTALEXPENDITURES 1,049,179$1,048,486$1,050,216$1,049,593$1,049,593$1,048,942$-0.1% FUNDBALANCE-JANUARY1 790,797$722,832$660,704$550,948$550,948$856,355$ Excess(Deficiency)of RevenuesoverExpenditures (67,965)(62,128)(109,756)(94,593)305,407 (203,942) FUNDBALANCE-DECEMBER31 722,832$660,704$550,948$456,355$856,355$652,413$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2015 458,000$66,164$3.40%524,164$ 8/1/2015 466,000 58,378 3.40%524,378 2/1/2016 474,000 50,456 3.40%524,456 8/1/2016 482,000 42,398 3.40%524,398 2/1/2017 490,000 34,204 3.40%524,204 8/1/2017 499,000 25,874 3.40%524,874 2/1/2018 507,000 17,391 3.40%524,391 8/1/2018 516,000 8,772 3.40%524,772 Total 3,892,000$303,637$4,195,637$ GOSewerRefundingBonds,Series2008B 161 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.The bondscanbecalledonFebruary1,2019. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. 2.Certifyorcollectdeferredspecialassessmentswhendevelopmentoccurs. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 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. 162 BUDGET: 2010AGOIMPROVEMENTBOND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 49,069$51,704$20,152$-$-$40,000$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 572,164 192,715 118,480 57,353 113,900 55,073 -4.0% Miscellaneous 1,810 20,101 (8,639)------ OperatingTransfers 185,960 308,195 308,195 239,595 239,595 117,936 -50.8% DebtProceeds --------- TOTALREVENUES 809,003$572,715$438,188$296,948$296,948$213,009$-28.3% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 201,212 460,428 448,550 360,650 360,650 302,899 -16.0% OperatingTransfers --------- TOTALEXPENDITURES 201,212$460,428$448,550$360,650$360,650$302,899$-16.0% FUNDBALANCE-JANUARY1 (89,956)$517,835$630,122$619,760$619,760$556,058$ Excess(Deficiency)of RevenuesoverExpenditures 607,791 112,287 (10,362)(63,702)(63,702)(89,890) FUNDBALANCE-DECEMBER31 517,835$630,122$619,760$556,058$556,058$466,168$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2015 265,000$19,395$1.05%284,395$ 8/1/2015 18,004 18,004 2/1/2016 270,000 18,004 1.45%288,004 8/1/2016 16,046 16,046 2/1/2017 275,000 16,046 1.80%291,046 8/1/2017 13,571 13,571 2/1/2018 275,000 13,571 2.05%288,571 8/1/2018 10,753 10,753 2/1/2019 280,000 10,753 2.25%290,753 8/1/2019 7,603 7,603 2/1/2020 290,000 7,603 2.45%297,603 8/1/2020 4,050 4,050 2/1/2021 300,000 4,050 2.70%304,050 Total 1,955,000$159,448$2,114,448$ GOImprovementandRefundingBonds,Series2010A 163 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.The2011AbondscanbecalledonFebruary1,2020. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. 2.Certifyorcollectdeferredspecialassessmentswhendevelopmentoccurs. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: Thecityissued$10,735,000in2011G.O.RefundingBondstoadvancerefundthe2005AG.O. ImprovementBonds.The2005AissuewasredeemedonFebruary1,2013. The2011AG.O.RefundingBond'srevenuesourcewillbeacombinationofexistingcityfunds, includingtransfersfromthethreeutilityaccessfundsandtheEconomicDevelopmentFund,a propertytaxlevy,andspecialassessments.Prioryear2005AG.O.revenuesandexpendituresare includedintheschedulepresentedinthebudgetsection.Escrowpaymentsmadein2013toredeem the2005AG.O.Bondsareexcluded. 164 BUDGET: 2011AG.O.BONDFUND(2005A)2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 232,130$260,490$246,424$223,000$223,000$330,000$48.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 166,846 692,899 753,058 577,000 983,461 598,038 3.6% Miscellaneous 205,219 196,438 224,246 224,700 224,700 216,800 -3.5% OperatingTransfers 1,593,630 1,959,131 2,658,286 1,749,393 1,834,393 946,900 -45.9% DebtProceeds --------- TOTALREVENUES 2,197,825$3,108,958$3,882,014$2,774,093$3,265,554$2,091,738$-24.6% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 3,127,046 3,053,238 2,911,356 2,880,650 2,880,650 2,460,750 -14.6% OperatingTransfers --------- TOTALEXPENDITURES 3,127,046$3,053,238$2,911,356$2,880,650$2,880,650$2,460,750$-14.6% FUNDBALANCE-JANUARY1 1,220,149$290,928$346,648$1,317,306$1,317,306$1,702,210$ Excess(Deficiency)of RevenuesoverExpenditures (929,221)55,720 970,658 (106,557)384,904 (369,012) FUNDBALANCE-DECEMBER31 290,928$346,648$1,317,306$1,210,749$1,702,210$1,333,198$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2015 2,310,000$86,675$2.00%2,396,675$ 8/1/2015 63,575 63,575 2/1/2016 2,320,000 63,575 2.00%2,383,575 8/1/2016 40,375 40,375 2/1/2017 710,000 40,375 2.00%750,375 8/1/2017 33,275 33,275 2/1/2018 720,000 33,275 2.00%753,275 8/1/2018 26,075 26,075 2/1/2019 380,000 26,075 2.00%406,075 8/1/2019 22,275 22,275 2/1/2020 390,000 22,275 2.00%412,275 8/1/2020 18,375 18,375 2/1/2021 395,000 18,375 3.00%413,375 8/1/2021 12,450 12,450 2/1/2022 410,000 12,450 3.00%422,450 8/1/2022 6,300 6,300 2/1/2023 420,000 6,300 3.00%426,300 Total 8,055,000$532,075$8,587,075$ GORefundingBonds,Series2011A 165 2014AG.O.JUDGMENTBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:317 ACTIVITY#:47000 ACTIVITYSCOPE: The2014AG.O.JudgmentBondfinancedthesettlementwithtelecommunicationsbondholders.The $5,750,000settlementessentiallyrelievesthecityofliabilityforthe$26,445,000inrevenuebonds usedtofinancetheconstructionofitstelecommunicationsutility.Thejudgmentportionofthe 2014Abondstotaled$6,080,000.Thecityborrowed(capitalizedinterest)the2015interestonly payments.Thereafter,thecitywilladdtheannualprincipalandinterestdebtservicepaymentstoits taxlevy.Theaverageinterestrateis3.0696%. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: The$6,595,0002014AG.O.Bondshadtwocomponents:$6,080,000judgmentportionsand $515,000capitalequipmentportion.Thecapitalequipmentportionwillbeaccountedforinthe CentralEquipmentFund.After2015,annualdebtservicepaymentswillbeaddedtothepropertytax levy.The2015interestonlypaymentswereaddedtothebondissue.Thefinalpaymentonthebonds isinDecember2030.Thebondsareredeemablein2021.However,anextraordinaryoptional redemptionprovisionallowsthecitytoredeemthebondsat101%ofparifthefiberopticssystemis soldorleased.Thesettlementproceedsweredistributeddirectlytothetrusteeforthebondholders. 166 BUDGET: 2014AGOJUDGMENTBONDS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous -----1,000 --- OperatingTransfers --------- DebtProceeds ----185,000 ---- TOTALREVENUES -$-$-$-$185,000$1,000$--- EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService -----185,000 --- OperatingTransfers --------- TOTALEXPENDITURES -$-$-$-$-$185,000$--- FUNDBALANCE-JANUARY1 -$-$-$-$-$185,000$ Excess(Deficiency)of RevenuesoverExpenditures ----185,000 (184,000) FUNDBALANCE-DECEMBER31 -$-$-$-$185,000$1,000$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 6/15/2015 81,057$81,057$ 12/15/2015 82,431 82,431 6/15/2016 82,431 82,431 12/15/2016 350,000$82,431 1.00%432,431 6/15/2017 80,680 80,680 12/15/2017 350,000 80,680 1.25%430,680 6/15/2018 78,493 78,493 12/15/2018 355,000 78,493 1.50%433,493 6/15/2019 75,831 75,831 12/15/2019 360,000 75,831 1.85%435,831 6/15/2020 72,501 72,501 12/15/2020 365,000 72,501 2.20%437,501 6/15/2021 68,486 68,486 12/15/2021 375,000 68,486 2.50%443,486 6/15/2022 63,798 63,798 12/15/2022 385,000 63,798 2.75%448,798 6/15/2023 58,504 58,504 12/15/2023 395,000 58,504 2.90%453,504 6/15/2024 52,777 52,777 12/15/2024 405,000 52,777 3.05%457,777 6/15/2025 46,600 46,600 12/15/2025 420,000 46,600 3.20%466,600 6/15/2026 39,881 39,881 12/15/2026 435,000 39,881 3.35%474,881 6/15/2027 32,594 32,594 12/15/2027 445,000 32,594 3.40%477,594 6/15/2028 25,029 25,029 12/15/2028 465,000 25,029 3.38%490,029 6/15/2029 17,182 17,182 12/15/2029 480,000 17,182 3.55%497,182 6/15/2030 8,663 8,663 12/15/2030 495,000 8,663 3.50%503,663 Total 6,080,000 1,770,388 7,850,388$ GOBonds,Series2014A(JudgmentPortion) 167 Thispageintentionallyleftblank 168 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2015 CAPITAL PROJECT FUNDS CAPITALPROJECTFUNDS-SUMMARY DESCRIPTION Capitalprojectfundsareusedtoaccountforfinancialresourcesthatarerestricted,committed,orassignedto expenditureforcapitaloutlaysincludingtheacquisitionorconstructionofcapitalfacilitiesandothercapital assets—excludingcapitalassetsfinancedbyproprietaryfunds(enterpriseorinternalservice).Capitalproject fundsusethemodifiedaccrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecity currentlyhassevenactivecapitalprojectfunds. BUDGETISSUES Financingcapitalassetadditionsorreplacementsisanongoingchallenge,especiallyinanenvironmentwhere thefocusisonmaintainingalow,stablepropertytaxlevy.Seetheindividualfundsforthebudgetissuesfacing eachcapitalprojectfund. BUDGETSUMMARY TOTALCAPITALPROJECT 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 33,420$29,655$2,346$-$-$-$--- TaxIncrements -------- Franchise&OtherTaxes 228,216 110,912 86,003 120,000 80,000 80,000 -33.3% Licenses&Permits --------- IntergovernmentalRevenues 620,007 272,186 910,287 1,670,000 411,713 2,901,000 73.7% ChargesforServices 881,348 170,371 270,319 50,000 50,000 120,000 140.0% Fines&Forfeits --------- SpecialAssessments 703,408 844,574 1,027,174 283,000 283,000 209,000 -26.1% Miscellaneous 736,265 420,159 (100,220)65,000 525,000 62,000 -4.6% OperatingTransfers 922,500 4,296,852 1,210,401 494,500 864,500 1,569,170 217.3% DebtProceeds 1,669,139 -------- TOTALREVENUES 5,794,303$6,144,709$3,406,310$2,682,500$2,214,213$4,941,170$84.2% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies 11,822 40,215 --3,766 ---- OtherServices&Charges 42,294 4,739 124,666 25,000 38,555 90,000 260.0% CapitalOutlay 3,981,902 1,615,086 1,920,453 2,769,500 1,910,503 5,673,000 104.8% DebtService 103,757 -------- OperatingTransfers 3,040,002 4,957,650 4,186,741 820,800 990,800 1,500,000 82.7% TOTALEXPENDITURES 7,179,777$6,617,690$6,231,860$3,615,300$2,943,624$7,263,000$100.9% FUNDBALANCE-JANUARY1 10,915,414$9,529,940$9,056,959$6,231,409$6,231,409$5,501,998$ Excess(Deficiency)of RevenuesoverExpenditures (1,385,474)(472,981)(2,825,550)(932,800)(729,411)(2,321,830) FUNDBALANCE-DECEMBER31 9,529,940$9,056,959$6,231,409$5,298,609$5,501,998$3,180,168$ 169 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: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: For2015,notableprojectsinclude:TH25/CSAH75-$1,992,000;FallonAvenueoverpass-$1,200,000; SchoolBoulevard-$550,000;TH25/85th Streetintersection-$303,100;streetreconstruction- $250,000;ruraloutlyingstreets-$250,000.Fundingsourcesinclude:statestreetaid-$1,208,100; federalaid-$1,110,900;MNDOTCIMS-$492,000;StreetReconstructionFundtransfer-$1,500,000. Reimbursementresolutionshavebeenpassedbycouncilonsomeoftheseprojects.Theresolutions allowthecitytoreimburseitselfwithdebtproceeds. 170 BUDGET: CAPITALPROJECTFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues 43,375 238,580 892,150 1,670,000 42,000 2,901,000 73.7% ChargesforServices 613,623 -------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous (67,135)24,286 (5,701)-463,000 ---- OperatingTransfers 672,500 3,148,680 460,401 -200,000 1,569,170 --- DebtProceeds 1,669,139 -------- TOTALREVENUES 2,931,502$3,411,546$1,346,850$1,670,000$705,000$4,470,170$167.7% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 333 333 23,737 25,000 ---100.0% CapitalOutlay 2,761,614 1,253,139 1,714,983 1,760,000 583,000 4,821,000 173.9% OperatingTransfers --100,000 ------ TOTALEXPENDITURES 2,761,947$1,253,472$1,838,720$1,785,000$583,000$4,821,000$170.1% FUNDBALANCE-JANUARY1 (1,532,176)$(1,362,621)$795,453$303,583$303,583$425,583$ Excess(Deficiency)of RevenuesoverExpenditures 169,555 2,158,074 (491,870)(115,000)122,000 (350,830) FUNDBALANCE-DECEMBER31 (1,362,621)$795,453$303,583$188,583$425,583$74,753$ 171 CLOSEDBONDFUND DEPARTMENT:ClosedBondFund SUPERVISOR:FinanceDirector FUND#:300 ACTIVITY#:47000 ACTIVITYSCOPE: FormerlyknownastheConsolidatedBondFund,thisfundhasbeenremovefromthedebtservice sectionandrenamed.Thefundhasnodebtobligation.However,specialassessmentssupporting pastdebtservicecontinuetoprovidefundingforcityprojects. OBJECTIVES: 1.Providefundingforvariouscityprojects,includingBertramChainofLakesproperty acquisitions. 2.Certifyorcollectdeferredspecialassessmentswhendevelopmentoccurs. ISSUES: 1.Maintainlowestpossiblepropertytax. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: In2015,specialassessmentscollectedonprojectswithretireddebtwillprovidefundingforBertram ChainofLakespropertyacquisitionsandpathwayandparkimprovements.AtransfertothePark& PathwayDedicationFundattheendof2014willprovidemoneyforsuchpurposes.Similarly,a supplementaltransfermayoccurin2015tofinance2016projects.Futureassessmentcollectionsfor 2016andbeyondareestimatedat$380,000. 172 BUDGET: CLOSEDBONDFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 8,553$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 702,564 844,574 1,027,174 283,000 283,000 209,000 -26.1% Miscellaneous 42,866 33,242 (19,501)5,000 5,000 5,000 0.0% OperatingTransfers -299,339 ------- DebtProceeds --------- TOTALREVENUES 753,983$1,177,155$1,007,673$288,000$288,000$214,000$-25.7% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 103,757 -------- OperatingTransfers 452,000 575,122 750,000 494,500 664,500 --100.0% TOTALEXPENDITURES 555,757$575,122$750,000$494,500$664,500$-$-100.0% FUNDBALANCE-JANUARY1 315,891$514,117$1,116,150$1,373,823$1,373,823$997,323$ Excess(Deficiency)of RevenuesoverExpenditures 198,226 602,033 257,673 (206,500)(376,500)214,000 FUNDBALANCE-DECEMBER31 514,117$1,116,150$1,373,823$1,167,323$997,323$1,211,323$ 173 PARK&PATHWAYDEDICATIONFUND DEPARTMENT:Recreation&Culture SUPERVISOR:ParksSuperintendent FUND#:229 ACTIVITY#:45202 ACTIVITYSCOPE: ActivitiesoftheParkandPathwayDedicationFundincludeupdatingandmaintainingthecity's pathwaysystem,aswellasdesignatingfundsforfuturecityparksandpathways. OBJECTIVES: 1.ContinuetomaintainexistingpathwaysoftheCity. 2.Planforintegrationoffundstowardparklandpurchases. 3.ContinuethepurchaseoftheBertramChainofLakes(formerlytheY.M.C.A.)property. ISSUES: 1.Economicimpactonnewdevelopmentandhomeconstruction. 2.Timeconstraintsofotherprojects. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: Thefund’smajorrevenuesourceisnormallyparkdedicationfees.However,duetotheeconomic conditionsandlackofnewdevelopment,for2015themainrevenuesourcewillbeanoperating transfertohelpfundthepurchaseanddevelopmentoftheBertramChainofLakesproperty.This fundwaspreviouslyaccountedforasaspecialrevenuefund. The2015budgetedexpendituresincludeHuntersCrossingparkimprovements($85,000),Hunters Crossingpathwayimprovements($85,000),propertypurchasesatBertramChainofLakes ($552,000),andBCOLdevelopmentstudy($90,000). 174 BUDGET: PARK&PATHWAYDEDICATION 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues 538,487 ---369,713 ---- ChargesforServices -----70,000 --- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 25,316 10,937 (7,851)5,000 2,000 2,000 -60.0% OperatingTransfers -573,833 750,000 494,500 664,500 --100.0% TOTALREVENUES 563,803$584,770$742,149$499,500$1,036,213$72,000$-85.6% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies ----3,766 ---- OtherServices&Charges 7,630 126 6,000 -38,555 90,000 --- CapitalOutlay 1,144,250 -205,470 494,500 1,212,503 727,000 47.0% OperatingTransfers --------- TOTALEXPENDITURES 1,151,880$126$211,470$494,500$1,254,824$817,000$65.2% FUNDBALANCE-JANUARY1 446,187$(141,890)$442,754$973,433$973,433$754,822$ Excess(Deficiency)of RevenuesoverExpenditures (588,077)584,644 530,679 5,000 (218,611)(745,000) FUNDBALANCE-DECEMBER31 (141,890)$442,754$973,433$978,433$754,822$9,822$ 175 STORMWATERACCESSFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:402 ACTIVITY#:49201 ACTIVITYSCOPE: TheStormwaterAccessFundprovidesresourcesformajorimprovementstothestormsewer system.Impactfeesarecollectedonbuildingpermitsfornewconstructionandlotdevelopment. Thesefeesarealsousedtoretiredebtservicerelatedtoimprovementstothesanitarysewer system. OBJECTIVES: 1.Maintainandupgradestormsewersystem. 2.Retiredebtservicerelatedtosystemimprovementsinatimelymanner. ISSUES: 1.Buildingpermitsforresidentialandcommercialdevelopmentareincreasing. 2.Theeconomyisrecovering. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesarestormseweraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2011A(formerly2005A) RefundingImprovementBond--partoftheinterchangeproject,andtothe2010AImprovementand RefinancingBond--itsshareofthe2010stormsewerproject.For2015andbeyond,routinefunding forpondimprovementswillcomefromtheGeneralFund.Therearenoplannedcapitaloutlaysfor non-routinepondimprovementsin2015. 176 BUDGET: STORMWATERACCESSFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 52,883 --50,000 50,000 50,000 0.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 126,442 62,037 (17,598)20,000 20,000 20,000 0.0% OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 179,325$62,037$(17,598)$70,000$70,000$70,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 16,540 604 7,164 ------ CapitalOutlay ---40,000 40,000 --100.0% OperatingTransfers 472,861 396,073 321,800 326,300 326,300 --100.0% TOTALEXPENDITURES 489,401$396,677$328,964$366,300$366,300$-$-100.0% FUNDBALANCE-JANUARY1 2,113,459$1,803,383$1,468,743$1,122,181$1,122,181$825,881$ Excess(Deficiency)of RevenuesoverExpenditures (310,076)(334,640)(346,562)(296,300)(296,300)70,000 FUNDBALANCE-DECEMBER31 1,803,383$1,468,743$1,122,181$825,881$825,881$895,881$ 177 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: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: Electricfranchisefeesprovideresourcesforlightingprojects,oftenconjunctionwithotherstreet improvementprojects.Forexample,the2013operatingtransferstootherfundsinclude$96,300for streetlightsforthe7th Streetextensionproject.Capitaloutlayfor2015includesalightingproject variouscurrentlyunspecifiedprojects. 178 BUDGET: STREETLIGHTIMPROVEMENTS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Franchise&OtherTaxes 228,216 110,912 86,003 120,000 80,000 80,000 -33.3% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 80,785 40,427 (10,106)10,000 10,000 10,000 0.0% OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 309,001$151,339$75,897$130,000$90,000$90,000$-30.8% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges -570 ------- CapitalOutlay ---75,000 75,000 125,000 66.7% OperatingTransfers 273,060 400,000 ------- TOTALEXPENDITURES 273,060$400,570$-$75,000$75,000$125,000$66.7% FUNDBALANCE-JANUARY1 929,677$965,618$716,387$792,284$792,284$807,284$ Excess(Deficiency)of RevenuesoverExpenditures 35,941 (249,231)75,897 55,000 15,000 (35,000) FUNDBALANCE-DECEMBER31 965,618$716,387$792,284$847,284$807,284$772,284$ 179 STREETRECONSTRUCTIONFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:406 ACTIVITY#:43121 ACTIVITYSCOPE: TheStreetReconstructionFundwasestablishedtotrackannualimprovementstocityinfrastructure. Improvementsarebasedonanannualreconstructionschedule. OBJECTIVES: 1.Improvecitystreetsonthecapitalimprovementplan. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 NotApplicable BUDGETCOMMENTARY: PastrevenuesourceshaveincludedpropertytaxesandoperatingtransfersfromtheLiquorFund. Neitherthetaxnortransferhasbeenbudgetedfor2015.Further,thecityanticipatesmakinga $1,500,000operatingtransfertotheCapitalProjectsFundtoplugfundinggapsforvariousprojects. Reimbursementresolutionshavebeenpassedbycouncilontheseprojects.Theseresolutionsallow thecitytoreimburseitselfwithdebtproceeds. 180 BUDGET: STREETRECONSTRUCTION 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 24,867$29,655$2,346$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 247,775 133,869 (24,620)25,000 25,000 25,000 0.0% OperatingTransfers 250,000 275,000 ------- DebtProceeds --------- TOTALREVENUES 522,642$438,524$(22,274)$25,000$25,000$25,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges -37 ------- CapitalOutlay ---400,000 ---100.0% OperatingTransfers 192,575 1,862,005 219,000 --1,500,000 --- TOTALEXPENDITURES 192,575$1,862,042$219,000$400,000$-$1,500,000$275.0% FUNDBALANCE-JANUARY1 3,000,830$3,330,897$1,907,379$1,666,105$1,666,105$1,691,105$ Excess(Deficiency)of RevenuesoverExpenditures 330,067 (1,423,518)(241,274)(375,000)25,000 (1,475,000) FUNDBALANCE-DECEMBER31 3,330,897$1,907,379$1,666,105$1,291,105$1,691,105$216,105$ 181 CLOSEDCAPITALPROJECTFUNDS CLOSEDFUNDSINCLUDEDINSUMMARYTOTAL: SanitarySewerAccess WaterAccess CapitalOutlayRevolving CLOSEDFUNDSSUMMARYTOTAL: CLOSEDCAPITALPROJECT 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- IntergovernmentalRevenues --------- ChargesforServices 38,145 33,606 18,137 ------ Fines&Forfeits 214,842 170,371 270,319 ------ SpecialAssessments --------- Miscellaneous 844 -------- OperatingTransfers 280,216 115,361 (14,843)------ DebtProceeds --------- TOTALREVENUES 534,047$319,338$273,613$-$-$-$--- EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies 11,822 40,215 ------- OtherServices&Charges 17,791 3,069 87,765 ------ CapitalOutlay 76,038 361,947 ------- OperatingTransfers 1,649,506 1,724,450 2,795,941 ------ TOTALEXPENDITURES 1,755,157$2,129,681$2,883,706$-$-$-$--- FUNDBALANCE-JANUARY1 5,641,546$4,420,436$2,610,093$-$-$-$ Excess(Deficiency)of RevenuesoverExpenditures (1,221,110)(1,810,343)(2,610,093)--- FUNDBALANCE-DECEMBER31 4,420,436$2,610,093$-$-$-$-$ 182 ENTERPRISE FUNDS Adopted2015 ENTERPRISE FUNDS 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,Deputy Registrar(DMV),FiberOptics. BUDGETISSUES Eachenterprisefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY TOTALENTERPRISEFUNDS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- SaleofGoods 4,653,385 4,854,798 5,085,925 4,944,500 5,030,500 4,973,000 0.6% Licenses&Permits 320 970 1,920 3,700 3,700 3,700 0.0% IntergovernmentalRevenues --------- ChargesforServices 4,591,338 5,220,495 5,204,529 5,022,350 4,931,350 5,236,584 4.3% Fines&Forfeits --------- SpecialAssessments 158,543 158,319 44,339 150,000 30,000 30,000 -80.0% Miscellaneous 2,084,906 535,993 599,191 145,500 369,000 151,400 4.1% ContributedCapital ---86,070 485,000 140,450 63.2% OperatingTransfers -4,450,000 860,000 350,000 600,000 450,000 28.6% DebtProceeds 1,949,327 1,004,698 3,003,224 --3,322,000 --- TOTALREVENUES 13,437,819$16,225,273$14,799,128$10,702,120$11,449,550$14,307,134$33.7% EXPENDITURES PersonnelServices 1,814,786$1,827,551$1,631,538$1,657,111$1,657,111$1,846,778$11.4% Supplies 4,314,394 3,881,892 4,032,579 4,307,910 4,283,410 4,209,200 -2.3% OtherServices&Charges 3,857,155 3,704,413 3,215,614 2,451,714 2,915,751 3,060,998 24.9% CapitalOutlay 128,591 98,628 3,480,674 802,764 375,764 4,277,000 432.8% DebtService 1,939,920 1,048,034 814,879 346,220 361,998 359,698 3.9% OperatingTransfers 821,187 4,032,219 1,138,500 2,234,335 2,969,335 1,582,936 -29.2% TOTALEXPENDITURES 12,876,033$14,592,737$14,313,784$11,800,054$12,563,369$15,336,610$30.0% FUNDBALANCE-JANUARY1 6,588,265$7,150,051$8,782,587$9,267,931$9,267,931$8,154,112$ Excess(Deficiency)of RevenuesoverExpenditures 561,786 1,632,536 485,344 (1,097,934)(1,113,819)(1,029,476) FUNDBALANCE-DECEMBER31 7,150,051$8,782,587$9,267,931$8,169,997$8,154,112$7,124,636$ 183 WATERFUND DEPARTMENT:PublicWorks SUPERVISOR:UtilitiesSuperintendent FUND#:601 ACTIVITY#:49440 ACTIVITYSCOPE: TheWaterFundisaself-sustainingcityutilityfund.Thewaterdepartmentmanagesthewater utility,providingacontinuoussupplyofhigh-qualitywatertocustomersatareasonablecost.The watersystemismaintainedatproperpressurelevelsanditisbacteria-free.Further,metering equipmentismaintainedtoaccountforaccurateusageandbilling. OBJECTIVES: 1.ContinueaddGPSdatapointtoGISsystem. 2.Improvewellheadprotectionprogram. 3.Advanceinstallationofradioreadingdevicesonwatermeters. ISSUES: 1.Additionalstateandfederalregulations. 2.Agingwatercontrolsystem(SCADA). 3.Projectdemandsonstaff. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Watercustomers 3,968 3,983 3,983 4,1124,212 Metersread 14,965 14,995 15,815 16,099 17,000 Metersreplaced 200 418 418 47 50 Newmetersinstalled 4 20 20 79 100 Waterlocates 500 500 500 300 300 Gallonspumped(MG)650 618 592 511 600 Valvesmaintained 1/4city 1/4city 1/4city 242 700 Hydrantsmaintained 1/4city 1/4city 1/4city 201 600 Timesmainsflushed 2 2 2 2 2 Mains/wellsrebuilt 2 1 1 1 0 Watertowersinspections 2 2 2 2 2 Reservoirinspections 1 1 1 1 1 Watersamplestosent 250 250 250 250 300 Newservicesinspected 1 5 5 76 100 GPSwatersystem 1/8city 1/8city 1/8city 1/8city 1/8city Serviceshut-offs 100 100 100 150 150 184 BUDGETCOMMENTARY: TheWaterFund’smainsourceofrevenueisusercharges.The2013and2015sewagecustomeruser rateswereincreasedby10%and5%,respectively.Toencourageconservationsandmeetthestate mandate,thecityhasestablishedusagetierswithhigherratesateachlevel.Capitaloutlaysinclude $150,000foranelectronicmonitoringsystemforwells,pumphousesandotherfacilities.Additional capitaloutlaysinclude$150,000forannualupgradestothedistributionsystem.Thepersonnel servicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Theprioryeardeclinein personnelservicesreflectstheshiftingofdutiesandresponsibilitiesresultingfromthepublicworks directorvacancy.In2015,onenewfull-timeoperatorpositionwillbesplitbetweentheWaterFund andSewageFund.Similartoprioryears,operatingtransfersoutwillretiredebtserviceforwater systemimprovementsindebtservicefunds.Otherbudgetitemsareexpectedtoremaincloseto prioryearlevels. BUDGET: WATERFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits 320 970 1,920 3,700 3,700 3,700 0.0% IntergovernmentalRevenues --------- ChargesforServices 919,590 1,146,604 1,170,787 1,121,800 1,016,800 1,146,800 2.2% Fines&Forfeits --------- SpecialAssessments 158,543 158,319 44,339 150,000 30,000 30,000 -80.0% Miscellaneous 255,600 194,675 (36,171)72,500 201,000 71,000 -2.1% ContributedCapital ---25,620 85,000 80,000 212.3% OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 1,334,053$1,500,568$1,180,875$1,373,620$1,336,500$1,331,500$-3.1% EXPENDITURES PersonnelServices 225,729$217,412$212,410$248,036$248,036$281,134$13.3% Supplies 105,049 122,659 82,194 100,950 100,950 166,150 64.6% OtherServices&Charges 328,070 251,695 195,257 260,466 260,466 285,263 9.5% CapitalOutlay -3,375 318,708 270,000 150,000 355,000 31.5% DebtService OperatingTransfers 144,718 207,219 413,500 551,000 636,000 558,264 1.3% TOTALEXPENDITURES 803,566$802,360$1,222,069$1,430,452$1,395,452$1,645,811$15.1% FUNDBALANCE-JANUARY1 3,379,997$3,910,484$4,608,692$4,567,498$4,567,498$4,508,546$ Excess(Deficiency)of RevenuesoverExpenditures 530,487 698,208 (41,194)(56,832)(58,952)(314,311) FUNDBALANCE-DECEMBER31 3,910,484$4,608,692$4,567,498$4,510,666$4,508,546$4,194,235$ 185 SEWAGEFUND DEPARTMENT:PublicWorks SUPERVISOR:UtilitiesSuperintendent FUND#:602 ACTIVITY#:49480 ACTIVITYSCOPE: TheSewageFundisaself-sustainingcityutilityfund.Thewaterdepartmentmanagesthesanitary sewersystemandaprivatevendorprovidestreatmentplantservices.TheSewageFundhastwo divisions:sanitaryseweroperationsandtreatmentplantoperations. OBJECTIVES: 1.ContinuetoaddGPSdatapointstoGISsystem. 2.Researchalternativewastedisposaloptions,includingcosts. 3.Advancelong-rangeplanningregardingplantcapacityandexpansion. 4.Monitorinfiltrationofgroundwaterintothesanitarysewersystem. ISSUES: 1.Treatmentplantisnearingcapacity. 2.Agingofcontrolsystem(SCADA)andotherassets. 3.Groundwaterinfiltration. 4.Costsoftreatmentalternatives. MEASURABLEWORKLOADDATA: Measurement 2010 2012 2013 2014 2015 Sewermainsmaintained 1/4city 1/4city 1/4city 17miles 28miles Liftstations 7 7 7 7 7 Sewermainlocates 300 300 300 300 300 GPSsewersystem 1/8city 1/8city 1/8city 1/8city 1/8city Manholesmaintained 650 600 600 356 716 Newservicehookups 2 20 20 76 100 Sewerservicestelevised 1/8city 1/8city 1/8city 1/8city 26Miles Gallons(MG)wastetreated 432 408 392 425 430 186 BUDGETCOMMENTARY: TheSewageFund’smainsourceofrevenueisusercharges.The2013and2015sewagecustomer userrateswereincreasedby10%and5%,respectively.Capitaloutlaysfor2015includedtreatment plantupgradesof$3,322,000,includingphosphorousreductionanddigestercoverimprovements. ThefundingmixforplantupgradesincludesaloanfromtheMinnesotaPublicFacilitiesAuthority. Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Theprior yeardeclineinpersonnelservicesreflectstheshiftingofdutiesandresponsibilitiesresultingfromthe publicworksdirectorvacancy.In2015,onenewfull-timeoperatorpositionwillbesplitbetweenthe WaterFundandSewageFund.Similartoprioryears,operatingtransfersoutwerebudgetedtoretire debtserviceforsystemimprovements.Otherbudgetitemsareexpectedtoremainclosetoprior yearlevels. BUDGET: SEWAGEFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE Propertytaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,712,684 1,853,141 1,981,967 2,050,500 1,999,500 2,050,500 0.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 192,338 135,999 (23,047)62,000 162,000 62,000 0.0% ContributedCapital ---60,450 400,000 60,450 0.0% OperatingTransfers --------- DebtProceeds 1,436 1,436 3,003,224 --3,322,000 --- TOTALREVENUES 1,906,458$1,990,576$4,962,144$2,172,950$2,561,500$5,494,950$152.9% EXPENDITURES PersonnelServices 258,576$283,869$263,020$245,306$245,306$281,945$14.9% Supplies 21,194 21,774 16,057 25,750 25,750 28,950 12.4% OtherServices&Charges 892,784 1,049,425 997,338 999,953 1,070,378 1,269,290 26.9% CapitalOutlay -79,019 2,935,299 270,000 70,000 3,677,000 1261.9% DebtService 121,051 109,981 172,259 346,220 361,998 359,698 3.9% OperatingTransfers 318,937 --1,283,335 1,683,335 574,672 -55.2% TOTALEXPENDITURES 1,612,542$1,544,068$4,383,973$3,170,564$3,456,767$6,191,555$95.3% FUNDBALANCE-JANUARY1 2,448,790$2,742,706$3,189,214$3,767,385$3,767,385$2,872,118$ Excess(Deficiency)of RevenuesoverExpenditures 293,916 446,508 578,171 (997,614)(895,267)(696,605) FUNDBALANCE-DECEMBER31 2,742,706$3,189,214$3,767,385$2,769,771$2,872,118$2,175,513$ 187 SEWAGETREATMENTPLANT(WWTP)DIVISION: SewageTreatmentPlant(orWastewatertreatmentplant)activityprovidesfortheoperationofthe facilitythatcollectsandtreatsallsewagefromthecity'ssanitarysewersystem.Thesewage treatmentplantisownedbythecity,buttheoperationsarecontractedouttoaprivatecompany. The2015budgetforcontractedplantserviceis$957,876.Thecontracthasfourreimbursable amounts(electricity,gas,repairs&maintenance,chemicals).For2015,thecontractorraisedthe budgetedamountsforthereimbursableitems,whicharebilledmonthly.Thehigherbudgetfor reimbursableitemsmeansthecitywillwriteasmallercheckinthefollowingyearwhenthebudget andactualamountsarereconciled. BUDGET: SEWAGEFUND 2011 2012 2013 2014 2014 2015 % TREATMENTPLANT Actual Actual Actual Budget Projected Budget Change PersonnelServices 83$117$400$1,227$1,227$1,227$0.0% Supplies 56 19 88 250 250 250 0.0% OtherServices&Charges 856,537 917,020 936,374 898,649 969,074 1,043,689 16.1% CapitalOutlay --2,935,299 --3,322,000 --- DebtService OperatingTransfers --------- TOTALEXPENDITURES 856,676$917,156$3,872,161$900,126$970,551$4,367,166$385.2% SANITARYSEWEROPERATIONSDIVISION: Sanitaryseweroperationsencompasstheoperationandmaintenanceofthesanitarysewersystem, whichconsistsofthesewermainsandliftstationsthattransportwastetothesewagetreatment plant(orWWTP).Transfersouttodebtservicefundsrepresenttheexhaustionofimpactfees formerlyaccountedforintheSanitarySewerAccessFund. BUDGET: SEWAGEFUND 2011 2012 2013 2014 2014 2015 % SEWEROPERATIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 258,493$283,752$262,620$244,079$244,079$280,718$15.0% Supplies 21,138 21,755 15,969 25,500 25,500 28,700 12.5% OtherServices&Charges 36,247 132,405 60,964 101,304 101,304 225,601 122.7% CapitalOutlay -79,019 -270,000 70,000 355,000 31.5% DebtService 121,051 109,981 172,259 346,220 361,998 359,698 OperatingTransfers 318,937 --1,283,335 1,683,335 574,672 -55.2% TOTALEXPENDITURES 755,866$626,912$511,812$2,270,438$2,486,216$1,824,389$-19.6% 188 REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 2/1/2015 95,000$8,000$4.00%103,000$ 8/1/2015 6,100 6,100 2/1/2016 100,000 6,100 4.00%106,100 8/1/2016 4,100 4,100 2/1/2017 100,000 4,100 4.00%104,100 8/1/2017 2,100 2,100 2/1/2018 105,000 2,100 4.00%107,100 Total 400,000$32,600$432,600$ GOBonds,Series2007A(RevenuePortion) Payable Principal Interest Rate Total 6/1/2015 35,299$35,299$ 12/1/2015 180,000$35,299 2.00%215,299 6/1/2016 33,499 33,499 12/1/2016 180,000 33,499 2.00%213,499 6/1/2017 31,699 31,699 12/1/2017 180,000 31,699 2.00%211,699 6/1/2018 29,899 29,899 12/1/2018 185,000 29,899 2.00%214,899 6/1/2019 28,049 28,049 12/1/2019 185,000 28,049 2.00%213,049 6/1/2020 26,199 26,199 12/1/2020 190,000 26,199 2.00%216,199 6/1/2021 24,299 24,299 12/1/2021 195,000 24,299 2.15%219,299 6/1/2022 22,203 22,203 12/1/2022 200,000 22,203 2.35%222,203 6/1/2023 19,853 19,853 12/1/2023 205,000 19,853 2.60%224,853 6/1/2024 17,188 17,188 12/1/2024 210,000 17,188 2.75%227,188 6/1/2025 14,300 14,300 12/1/2025 215,000 14,300 3.00%229,300 6/1/2026 11,075 11,075 12/1/2026 225,000 11,075 3.00%236,075 6/1/2027 7,700 7,700 12/1/2027 230,000 7,700 3.20%237,700 6/1/2028 4,020 4,020 12/1/2028 240,000 4,020 3.35%244,020 Total 2,820,000$610,558$3,430,558$ GOWastewaterTreatmentBonds,Series2013B 189 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.Promoteandcontrolthesafeandresponsiblesaleofalcohol. 2.Competitivepricing. 3.Staffturnover. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Grossprofit 1,151,171$1,214,918$1,318,276$1,289,040$1,300,000$ Grossprofit%ofsales 25%25%26%25%25% Salespersquarefoot $509 $529 $551 $587 $587 Winetastingticketssold 400 400 400 400 300 Totalnumberofsales 222,409 226,891 229,406 229,375 230,000 Staffhoursworked 15,037 15,746 17,298 15,383 15,400 Salesperhourworked 14.8 14.4 13.3 14.9 14.9 Averagesale $22.85$23.36$24.16 $24.60 $24.75 BUDGETCOMMENTARY: Hi-WayLiquorshascontinuedtobeaself-supportingcityenterprisefund,withprofitsdirected towardspecialprojects.Consequently,thishelpkeeppropertytaxeslower.Revenuesaregenerated bysaleofalcoholicbeveragesandmerchandiserelatedtotheliquorindustry.In2015,theLiquor Fundisslatedtoprovide$450,000totheFiberOpticsFund.Thebulkoftheoperatingtransfersfor 2013and2014wenttotheFiberOpticsFund.Capitaloutlaysfor2015includereplacementofthe checkoutarea. 190 BUDGET: LIQUORFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE SaleofGoods 4,653,385$4,854,798$5,085,925$4,944,500$5,030,500$4,973,000$0.6% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 203,048 (9,161)(7,596)10,000 5,000 5,000 -50.0% ContributedCapital --------- OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 4,856,433$4,845,637$5,078,329$4,954,500$5,035,500$4,978,000$0.5% EXPENDITURES PersonnelServices 416,160$422,579$441,640$471,314$471,314$509,082$8.0% Supplies 3,486,652 3,627,138 3,759,667 3,893,700 3,893,700 3,739,390 -4.0% OtherServices&Charges 193,693 200,897 209,149 233,441 233,441 231,387 -0.9% CapitalOutlay 37,782 16,234 -50,000 -125,000 150.0% DebtService OperatingTransfers 250,000 3,500,000 650,000 350,000 600,000 450,000 28.6% TOTALEXPENDITURES 4,384,287$7,766,848$5,060,456$4,998,455$5,198,455$5,054,859$1.1% FUNDBALANCE-JANUARY1 3,098,730$3,570,876$649,665$667,538$667,538$504,583$ Excess(Deficiency)of RevenuesoverExpenditures 472,146 (2,921,211)17,873 (43,955)(162,955)(76,859)$ FUNDBALANCE-DECEMBER31 3,570,876$649,665$667,538$623,583$504,583$427,724$ 191 DEPUTYREGISTRARFUND DEPARTMENT:DeputyRegistrar(DMV) SUPERVISOR:FinanceDirector FUND#:217 ACTIVITY#:41990 ACTIVITYSCOPE: TheDeputyRegistrar(DMV)isacity-basedserviceentity,whichassistscustomerswiththepurchase ofvehiclelicenseplates/tabs,DNRlicensesandotherlicensesasrequiredbytheStateofMinnesota. OBJECTIVES: 1.MarketingDMVservicestopublicanddealerships. 2.Addandimprovecustomerservices. 3.Updateemployeetrainingandcertifications. ISSUES: 1.Changestostatelicensingregulations. 2.Availabilityofstateequipmentduringlicenseprocessing. 3.Providingserviceswhichhavenocharges. 4.Economicpressuresonvariouscustomers,includingdealerships. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Motorvehicletransactions 53,953 56,211 55,261 60,051 60,000 DNRtransactions 5,621 5,465 5,727 5,949 6,000 Game&Fishtransactions 376 509 445 433 450 Driver'slicensetransactions 326 814 951 1,462 1,500 Totaltransactions 60,276 62,999 62,384 67,895 67,950 Staffhours 7,703 8,904 8,283 8,589 8,500 Transactionsperhour 7.8 7.1 7.5 7.9 8.0 Dealershipsserviced 35 38 38 38 38 192 BUDGETCOMMENTARY: ThemainrevenuesourcefortheDMVisthefeeschargedfortheissuanceofvariouslicenses.In2009 theDMVbeganpartialdriver’slicenseservicesandthisrevenuestreamcontinuestogrow.Thecity transferred$325,000tootherfundstoreduceinterfundloansin2012.The2013and2014operating transfersrepresentcontributionstocommunitycenterprojects.The2015personnelservicesbudget includesafullstepincreaseanda3%cost-of-livingincrease.Thisfundwaspreviouslyaccountedfor asaspecialrevenuefund. BUDGET: DEPUTYREGISTRAR 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 365,285 455,293 456,285 380,050 380,050 400,100 5.3% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 20,223 12,105 (2,089)1,000 1,000 1,000 0.0% OperatingTransfers --------- TOTALREVENUES 385,508$467,398$454,196$381,050$381,050$401,100$5.3% EXPENDITURES PersonnelServices 247,347$264,045$269,045$276,555$276,555$287,851$4.1% Supplies 5,715 4,825 8,601 14,350 14,350 15,050 4.9% OtherServices&Charges 12,567 13,388 23,861 39,678 39,678 40,528 2.1% CapitalOutlay --------- OperatingTransfers 97,500 325,000 75,000 50,000 50,000 --100.0% TOTALEXPENDITURES 363,129$607,258$376,507$380,583$380,583$343,429$-9.8% FUNDBALANCE-JANUARY1 228,245$250,624$110,764$188,453$188,453$188,920$ Excess(Deficiency)of RevenuesoverExpenditures 22,379 (139,860)77,689 467 467 57,671 FUNDBALANCE-DECEMBER31 250,624$110,764$188,453$188,920$188,920$246,591$ 193 FIBEROPTICSFUND DEPARTMENT:FiberOpticsFund SUPERVISOR:CityAdministrator FUND#:655 ACTIVITY#:49871 ACTIVITYSCOPE: TheFiberOpticsFundwilleventuallybeaself-sustainingenterprisefund.FiberOpticsdelivershigh speedinternet,phoneandcabletelevisionservicestocustomerswithinthecity.Residentialand commercialcustomerscansubscribetoanyoftheservicesindividuallyoraspartofapackage. OBJECTIVES: 1.Offeravarietyofinternetspeedsandcablepackagestocustomers. 2.Minimizesubsidyfromotherfunds. ISSUES: 1.Continuetogrowcustomerbasetogeneratesufficientrevenuestocovercosts. 2.Variouslegalaspectsofoperatingatelecommunicationbusiness. MEASURABLEWORKLOADDATA: Measurement 2011 2012 2013 2014 2015 Internetsubscibers 1,423 1,257 1,2891,3461,400 Phonesubscribers 1,0021,109976 894 870 CableTVsubscribers 1,058997 860 806 780 BUDGETCOMMENTARY: TheFiberOpticsFundbeganoperationsin2009andconstructionofthefiberopticnetworkwas completedin2010.Revenuescomefromchargestosubscribersandexpendituresareincurredasa resultofoperatingthesystemandnewcustomerserviceinstallations.Thecityhasdefaultedonthe revenuebondsusedtofinanceconstructionofthesystem.Consequently,nofuturedebtserviceis planned.In2012,thecitytransferred$4,450,000tothefund,reducinganinterfundloanbalance.In 2013,theothercityfundstransferred$860,000intotheFiberOpticsFund.In2014,theLiquorFund provided$600,000forFiberOpticsoperations.The2015budgetincludesa$450,000transferfrom theLiquorFund. 194 BUDGET: FIBEROPTICS 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,593,779 1,765,457 1,595,490 1,470,000 1,535,000 1,639,184 11.5% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 1,413,697 202,375 668,094 --12,400 --- ContributedCapital --------- OperatingTransfers -4,450,000 860,000 350,000 600,000 450,000 28.6% DebtProceeds 1,947,891 1,003,262 ------- TOTALREVENUES 4,955,367$7,421,094$3,123,584$1,820,000$2,135,000$2,101,584$15.5% EXPENDITURES PersonnelServices 666,974$639,646$445,423$415,900$415,900$486,766$17.0% Supplies 695,784 105,496 166,060 273,160 248,660 259,660 -4.9% OtherServices&Charges 2,430,041 2,189,008 1,790,009 918,176 1,311,788 1,234,530 34.5% CapitalOutlay 90,809 -226,667 212,764 155,764 120,000 -43.6% DebtService 1,818,869 938,053 642,620 ------ OperatingTransfers 10,032 -------- TOTALEXPENDITURES 5,712,509$3,872,203$3,270,779$1,820,000$2,132,112$2,100,956$15.4% FUNDBALANCE-JANUARY1 (2,567,497)$(3,324,639)$224,252$77,057$77,057$79,945$ Excess(Deficiency)of RevenuesoverExpenditures (757,142)3,548,891 (147,195)-2,888 628 FUNDBALANCE-DECEMBER31 (3,324,639)$224,252$77,057$77,057$79,945$80,573$ 195 Thispageintentionallyleftblank 196 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2015 INTERNAL SERVICE FUNDS 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.Thesetwofundswereinitiatedin2013and2014wasthefirstfullyearofoperations. BUDGETISSUES Eachinternalservicefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY TOTALINTERNALSERVICE 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --187,535 376,928 364,608 431,701 14.5% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous --(5,862)5,210 5,210 5,210 0.0% OperatingTransfers --530,663 ------ DebtProceeds --500,000 -500,000 ---- TOTALREVENUES -$-$1,212,336$382,138$869,818$436,911$14.3% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --7,473 26,950 26,950 35,600 32.1% OtherServices&Charges --112,983 215,761 215,761 232,500 7.8% CapitalOutlay --112,013 694,197 519,500 299,500 -56.9% DebtService --59,297 66,120 66,120 77,760 17.6% OperatingTransfers --------- TOTALEXPENDITURES -$-$291,766$1,003,028$828,331$645,360$-35.7% FUNDBALANCE-JANUARY1 -$-$-$920,570$920,570$962,057$ Excess(Deficiency)of RevenuesoverExpenditures --920,570 (620,890)41,487 (208,449) FUNDBALANCE-DECEMBER31 -$-$920,570$299,680$962,057$753,608$ 197 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: Measurement 2011 2012 2013 2014 2015 Outcome/Effectiveness: Networkuptime 99%99%99% Numberofclosedrequests 322 348 372 372 Efficiency: Operationhoursvs.reported hoursassignedtorequests Opentoclosedrequestsratio 99%99%99%99% WorkLoad: Numberofhelpdeskrequests 326 352 375 375 Numberofclients/users 60 56 57 57 NumberofPC,servers,and networkdevices 95 100 102 102 198 BUDGETCOMMENTARY: TheITServicesFund’smainsourceofrevenueisinternalusercharges.Thefundwasinitiatedinthe middleof2013. BUDGET: ITSERVICES 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --125,000 252,708 252,708 278,101 10.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous --(136)100 100 100 0.0% OperatingTransfers --30,000 ------ DebtProceeds --------- TOTALREVENUES -$-$154,864$252,808$252,808$278,201$10.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --7,473 26,950 26,950 35,600 32.1% OtherServices&Charges --108,416 215,761 215,761 232,500 7.8% CapitalOutlay --17,013 10,000 10,000 10,000 0.0% DebtService --------- OperatingTransfers --------- TOTALEXPENDITURES -$-$132,902$252,711$252,711$278,100$10.0% FUNDBALANCE-JANUARY1 -$-$-$21,962$21,962$22,059$ Excess(Deficiency)of RevenuesoverExpenditures --21,962 97 97 101 FUNDBALANCE-DECEMBER31 -$-$21,962$22,059$22,059$22,160$ 199 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: Measurement 2010 2011 2013 2014 2015 Outcome/Effectiveness: Annualcostrecovery 15,800$111,900$153,600$ Totalcostsofassetsacquired 95,000$656,491$945,991$ Efficiency: Costrecoveryas%of acquiredassets.17%17%16% WorkLoad: Numberofassetsacquired 3 9 15 200 BUDGETCOMMENTARY: TheCentralEquipmentFund’smainsourceofrevenueisinternalrentalcharges.Thefundwas initiatednearthebeginningof2013withthesaleof$500,000incertificatesofindebtedness.Thecity alsoissued$515,000inG.O.bondsin2014tofinancetheacquisitionofafiretenderandaplow truck.In2014,theoperatingtransferresultedfromclosingtheCapitalOutlayRevolvingFund.The citytookpossessionofthefiretenderinDecember.Theplowtruckwillbepurchaseinthefirsthalf of2016.The2015budgetedequipmentacquisitions:[publicworksequipment]speedtrailer- $12,500;tractorloader-$95,000;blacktoproller-$30,000;forklift(used)-$15,000;[recreation equipment]parktruck-$25,000;CushmanTruckster-$35,000;overseeder-$12,000. BUDGET: CENTRALEQUIPMENTFUND 2011 2012 2013 2014 2014 2015 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --62,535 124,220 111,900 153,600 23.7% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous --(5,726)5,110 5,110 5,110 0.0% OperatingTransfers --500,663 ------ DebtProceeds --500,000 -500,000 ---- TOTALREVENUES -$-$1,057,472$129,330$617,010$158,710$22.7% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --4,567 ------ CapitalOutlay --95,000 684,197 509,500 289,500 -57.7% DebtService --59,297 66,120 66,120 77,760 17.6% OperatingTransfers --------- TOTALEXPENDITURES -$-$158,864$750,317$575,620$367,260$-51.1% FUNDBALANCE-JANUARY1 -$-$-$898,608$898,608$939,998$ Excess(Deficiency)of RevenuesoverExpenditures --898,608 (620,987)41,390 (208,550) FUNDBALANCE-DECEMBER31 -$-$898,608$277,621$939,998$731,448$ 201 REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 12/1/2015 60,000$5,760$0.85%65,760$ 12/1/2016 60,000 5,250 1.10%65,250 12/1/2017 65,000 4,590 1.35%69,590 12/1/2018 65,000 3,713 1.60%68,713 12/1/2019 65,000 2,673 1.85%67,673 12/1/2020 70,000 1,470 2.10%71,470 Total 385,000$23,455$408,455$ GOCertificatesofIndebtedness,Series2013A Payable Principal Interest Rate Total 6/15/2015 5,413$5,413$ 12/15/2015 5,505 5,505 6/15/2016 5,505 5,505 12/15/2016 55,000$5,505 1.00%60,505 6/15/2017 5,230 5,230 12/15/2017 55,000 5,230 1.25%60,230 6/15/2018 4,886 4,886 12/15/2018 55,000 4,886 1.50%59,886 6/15/2019 4,474 4,474 12/15/2019 55,000 4,474 1.85%59,474 6/15/2020 3,965 3,965 12/15/2020 55,000 3,965 2.20%58,965 6/15/2021 3,360 3,360 12/15/2021 55,000 3,360 2.50%58,360 6/15/2022 2,610 2,610 12/15/2022 60,000 2,610 2.75%62,610 6/15/2023 1,785 1,785 12/15/2023 60,000 1,785 2.90%61,785 6/15/2024 915 915 12/15/2024 60,000 915 3.05%60,915 Total 510,000$76,378$586,378$ GOBonds,Series2014A(EquipmentPortion) 202 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2015 CAPITAL IMPROVEMENT PROGRAM CAPITALIMPROVEMENTPROGRAM INTRODUCTION Thecapitalimprovementspresentedinthissectioncomprisethe2015-2019CapitalImprovements 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,theseassetshaveshorterusefullivesandmustbereplacedonaregularly scheduledbasis. 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 203 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. 204 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. 205 DocumentOperatingImpact Thisisarequiredfield;projectsarenotacceptedwithoutit.Recordthecostsintheyeartheywill initiallyoccur.Itwillbeassumedthatthecostcontinuesfromthatpointon,unlessinformationis providedotherwise.Thefollowingpossibilitiesexist: ·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. 206 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. 207 HOWISTHECAPITALIMPROVEMENTPROGRAMFINANCED? Inanalyzingthefinancialviabilityofthecapitalimprovementsinthe2015-2019CIPthecityhasthree 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$1.2millionofitsstate-aidstreetfundstowardvariousprojectsincludingthe TH25/CSAH75intersection,FallonAvenueoverpassandSchoolBoulevardimprovements.Thecity hasalsocommitted$1.5millionfromitsStreetReconstructionFundforthesameandotherprojects. Othersourcesincludegrants,donations,reserves,andothergovernmentalunitsthatshare boundaries. 208 ItemslistedonthefollowingpagesaretypicallylabeledwithprefixesVEQ-forvehiclesand equipment,MNC-(majornon-capital)repairs&maintenance,STE-forsmalltoolsandequipment.All otherlabelprefixesrepresentcapitalimprovements.Thebelowgraphandtableprovidesa breakdownofexpenditureswithintheCIP: $- $4 $8 $12 $16 $20 $24 2015 2016 2017 2018 2019 Millions Expenditures-IntegratedCIPforFY2015-2019 CapitalImprovements Garage(CapitalEquipment)FirstAidKit(RepairsandMaintenance)ToolBox(SmallToolsandEquipment) ExpenditureCategory 2015 2016 2017 2018 2019 CapitalImprovements 9,581,500$11,519,100$3,675,000$8,490,000$20,825,000$ Garage (CapitalEquipment)429,500 1,451,200 1,595,000 737,000 1,870,000 FirstAidKit (RepairsandMaintenance)305,000 345,000 215,000 260,000 218,500 ToolBox (SmallToolsandEquipment)57,900 53,300 58,300 83,000 49,200 10,373,900$13,368,600$5,543,300$9,570,000$22,962,700$ 209 ItemslistedonthefollowingpagesaretypicallylabeledwithprefixesVEQ-forvehiclesand equipment,MNC-(majornon-capital)repairs&maintenance,STE-forsmalltoolsandequipment.All otherlabelprefixesrepresentcapitalimprovements.Thebelowgraphandtableprovidesa breakdownofexpenditureswithintheCIP: $- $4 $8 $12 $16 $20 $24 2015 2016 2017 2018 2019 Millions Expenditures-IntegratedCIPforFY2015-2019 CapitalImprovements Garage(CapitalEquipment)FirstAidKit(RepairsandMaintenance)ToolBox(SmallToolsandEquipment) ExpenditureCategory 2015 2016 2017 2018 2019 CapitalImprovements 9,581,500$11,519,100$3,675,000$8,490,000$20,825,000$ Garage (CapitalEquipment)429,500 1,451,200 1,595,000 737,000 1,870,000 FirstAidKit (RepairsandMaintenance)305,000 345,000 215,000 260,000 218,500 ToolBox (SmallToolsandEquipment)57,900 53,300 58,300 83,000 49,200 10,373,900$13,368,600$5,543,300$9,570,000$22,962,700$ 210 CapitalImprovementPlan CityofMonticello,Minnesota FUNDINGSOURCESUMMARY 2015 thru 2019 TotalSource20152016201720182019 CapitalEquipmentFund 3,537,700224,500 631,200 545,000 722,000 1,415,000 CapitalProjectFund 8,460,000305,000 1,015,000 1,040,000 2,850,000 3,250,000 CommunityCenterFund 1,808,500137,000 284,500 1,173,500 166,000 47,500 DebtProceeds 31,072,0004,522,000 7,620,000 1,530,000 3,900,000 13,500,000 DMVFund 21,5001,500 20,000 FederalAid 1,200,0001,110,900 89,100 GeneralFund 1,159,500211,500 281,000 220,000 227,000 220,000 ITServicesFund 152,20029,400 32,800 29,800 30,000 30,200 MNDOTCIMS 506,000492,000 14,000 MunicipalLiquorFund 1,675,000125,000 25,000 1,525,000 Parks&PathwaysFund 1,942,000682,000 125,000 245,000 45,000 845,000 SewageFund 2,450,000250,000 1,350,000 150,000 150,000 550,000 StateAid 1,858,1001,208,100 650,000 StormwaterAccessFund 1,500,00040,000 40,000 140,000 1,190,000 90,000 StreetConstructionFund 900,000550,000 300,000 50,000 StreetLightingFund 500,000125,000 150,000 75,000 75,000 75,000 WaterFund 2,986,000270,000 741,000 345,000 215,000 1,415,000 WrightCounty 90,00090,000 10,373,900 13,368,600 5,543,300 9,570,000 22,962,700 61,818,500GRANDTOTAL ProducedUsingthePlan-ItCapitalPlanningSoftware 211 CapitalImprovementPlan CityofMonticello,Minnesota PROJECTS&FUNDINGSOURCESBYDEPARTMENT 2015 2019thru Total20152016201720182019DepartmentProject#Priority CommunityCenter 1,808,500137,000 284,500 1,173,500 166,000 47,500CommunityCenterFund 1,808,500137,000 284,500 1,173,500 166,000 47,500CommunityCenterTotal MCC-13-001 25,00025,000MovableWalls3 MCC-13-002 1,000,0001,000,000SplashPark3 MCC-13-005 200,000100,000 100,000NewRoofs2 MCC-13-006 65,00065,000ParkingLotImprovements2 MCC-14-001 50,00050,000Romp&StompAdditions 3 MNC-13-006 30,00015,000 15,000Carpet3 MNC-13-007 12,00012,000WoodFloor-MississippiRoom 3 MNC-13-008 30,00030,000ReglazeWaterSlide2 MNC-13-009 50,00050,000GymFloorReplacement2 MNC-13-010 20,00010,000 10,000VanityandPartitionReplacement3 MNC-13-012 3,5003,500WeightRoomMirrors3 MNC-13-013 50,00050,000DiamondBritePoolResurface2 MNC-13-014 20,00020,000MechanicalImprovements2 MNC-15-001 10,00010,000AirConditioner-Supplemental 3 MNC-15-002 10,00010,000Plexi-GlassAddition-FitnessArea 3 STE-13-013 71,00010,000 7,500 7,500 36,000 10,000RecreationEquipment3 STE-13-014 4,0004,000TableCovers3 STE-13-015 10,0005,000 5,000Tables3 STE-13-016 4,0004,000PatioFurniture3 STE-15-001 24,00012,000 12,000SecurityCameraUpgrade3 VEQ-13-045 15,00015,000Dishwasher2 VEQ-13-059 40,00040,000UpgradeIndoorPlayStructure3 VEQ-13-060 65,00035,000 30,000PoolToy3 1,808,500137,000 284,500 1,173,500 166,000 47,500CommunityCenterTotal DMV-DeputyRegistrar 21,5001,500 20,000DMVFund 21,5001,500 20,000DMV-DeputyRegistrarTotal STE-13-018 1,5001,500SecurityCameras2 VEQ-13-047 20,00020,000DMVVehicle2 21,5001,500 20,000DMV-DeputyRegistrarTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 212 Total20152016201720182019DepartmentProject#Priority Fire&Rescue 1,100,0001,100,000CapitalEquipmentFund 3,250,0003,250,000CapitalProjectFund 25,0005,000 5,000 5,000 5,000 5,000GeneralFund 4,375,0005,000 5,000 5,000 5,000 4,355,000Fire&RescueTotal FRD-13-001 250,000250,000FireStationAddition2 FRD-13-002 3,000,0003,000,000NewFireStation2 STE-13-006 25,0005,000 5,000 5,000 5,000 5,000SCBAPacks2 VEQ-13-006 1,100,0001,100,000FireLadderTruck2 4,375,0005,000 5,000 5,000 5,000 4,355,000Fire&RescueTotal ITServices 152,20029,400 32,800 29,800 30,000 30,200ITServicesFund 152,20029,400 32,800 29,800 30,000 30,200ITServicesTotal STE-13-001 73,20015,600 10,800 15,600 15,600 15,600PersonalComputers2 STE-13-002 4,0004,000LedgerSizeColorScanner2 STE-13-003 4,0004,000Multi-serverComponentUpgrade 2 STE-13-005 15,0003,000 3,000 3,000 3,000 3,000Laptops2 STE-13-007 40,0008,000 8,000 8,000 8,000 8,000GISHardwareandSoftware2 STE-13-008 16,0002,800 3,000 3,200 3,400 3,600PavementManagementSoftware2 152,20029,400 32,800 29,800 30,000 30,200ITServicesTotal MunicipalLiquor 1,675,000125,000 25,000 1,525,000MunicipalLiquorFund 1,675,000125,000 25,000 1,525,000MunicipalLiquorTotal LIQ-13-001 50,00050,000CountersandCheckout2 LIQ-13-002 75,00075,000ParkingLotImprovements2 LIQ-13-003 1,500,0001,500,000LiquorStore-#2 3 VEQ-13-046 50,00025,000 25,000LiquorStoreCoolers2 1,675,000125,000 25,000 1,525,000MunicipalLiquorTotal PublicWorks MNC-15-004 42,00042,000StopLightPainting3 MNC-15-005 16,00016,000StreetBanners4 PWK-13-001 9,000,0009,000,000PublicWorksFacility3 PWK-13-002 200,000200,000PWFacilityLandAcquisition3 STE-13-011 7,0007,000Generator2 VEQ-13-010 12,50012,500SpeedTrailer2 VEQ-13-011 95,00095,000Mid-sizeTractor/Loader 2 VEQ-13-013 65,00065,000One-TonTruck 2 ProducedUsingthePlan-ItCapitalPlanningSoftware 213 Total20152016201720182019DepartmentProject#Priority 1,888,500152,500 299,000 480,000 642,000 315,000CapitalEquipmentFund 200,000200,000CapitalProjectFund 9,000,0009,000,000DebtProceeds 65,00058,000 7,000GeneralFund 11,153,500152,500 357,000 480,000 849,000 9,315,000PublicWorksTotal VEQ-13-014 30,00030,000Truck-Pickup4X4 2 VEQ-13-015 130,000130,000BucketTruck2 VEQ-13-016 75,00075,000BlacktopPaver2 VEQ-13-017 22,00022,000BlacktopPlainer2 VEQ-13-018 22,00022,000Router2 VEQ-13-019 20,00020,000ConcreteSaw2 VEQ-13-021 95,00095,000Backhoe2 VEQ-13-022 455,000225,000 230,000PlowTruck2 VEQ-13-023 65,00065,000One-TonTruckandPlow 2 VEQ-13-025 142,000142,000SnowGoSnowBlower2 VEQ-13-026 65,00065,000SkidSteereLoader2 VEQ-13-027 30,00030,000SignLabSystem2 VEQ-13-028 20,00020,000PaverTrailer2 VEQ-13-030 30,00030,000BlacktopRoller2 VEQ-14-001 220,000220,000WheelLoader-3yd.3 VEQ-14-002 200,000200,000StreetSweeper3 VEQ-14-003 80,00080,000BlacktopHotBox3 VEQ-15-003 15,00015,000ForkLift(Used)3 11,153,500152,500 357,000 480,000 849,000 9,315,000PublicWorksTotal Recreation&Culture MNC-15-003 12,50012,500ParkShopAddition3 PAR-13-001 85,00085,000HuntersCrossingParkDevelopment3 PAR-13-002 60,00060,000FeatherstoneParkDevelopment3 PAR-13-003 10,00010,000SunsetPondsShelter3 PAR-13-004 90,00090,000PioneerPark-BandShell 3 PAR-13-005 10,00010,000PlaygroundEquipment2 PAR-13-006 17,50017,500MontiHillParkDevelopment2 PAR-13-007 200,00040,000 40,000 40,000 40,000 40,000PathwayImprovemnents(Annual)2 PAR-13-008 552,000552,000BertramLakesLandAcquisition2 PAR-13-010 25,0005,000 5,000 5,000 5,000 5,000BCOLImprovements3 PAR-13-011 4,0004,000DugoutRoofs-XcelBallFields 3 PAR-13-012 2,000,0002,000,000BCOLBallFields3 PAR-13-013 155,000155,000EllisonParkLogShelter3 PAR-13-014 25,00025,000CSAH75PathwayLighting3 PAR-15-001 17,50017,500MeadowOaksDogPark3 PAR-15-002 85,00085,000FallonAveConnection-HuntersCrossing 3 PAR-15-003 45,00045,000SpiritHill-WildwoodPathwayConnection 3 PAR-15-004 200,000200,000FenningAvenuePathwayConnection3 PAR-15-005 800,000800,000WBridgeSplashPad-EBridgeBandShell 4 ProducedUsingthePlan-ItCapitalPlanningSoftware 214 Total20152016201720182019DepartmentProject#Priority 549,20072,000 332,200 65,000 80,000CapitalEquipmentFund 2,410,00085,000 325,000 2,000,000CapitalProjectFund 19,50016,500 3,000GeneralFund 1,942,000682,000 125,000 245,000 45,000 845,000Parks&PathwaysFund 25,00025,000StreetLightingFund 4,945,700855,500 810,200 310,000 2,125,000 845,000Recreation&CultureTotal STE-13-012 3,0003,000SodCutter2 VEQ-13-031 50,00050,000ParkMowers2 VEQ-13-032 170,00025,000 65,000 80,000Trucks2 VEQ-13-033 140,000140,000MTTracklessSidewalkMachine2 VEQ-13-037 35,00035,000CushmanTruckster2 VEQ-13-038 40,00040,000Tractor2 VEQ-13-039 65,00065,000SkidLoader2 VEQ-13-041 25,00025,000ToroInfieldPro50402 VEQ-15-001 12,20012,200Mule-Kawaskireplacement 2 VEQ-15-002 12,00012,000LandPrideOverseeder3 4,945,700855,500 810,200 310,000 2,125,000 845,000Recreation&CultureTotal Stormwater\Drainage 1,500,00040,000 40,000 140,000 1,190,000 90,000StormwaterAccessFund 150,00050,000 50,000 50,000StreetConstructionFund 1,650,00090,000 90,000 190,000 1,190,000 90,000Stormwater\DrainageTotal SWD-13-001 200,00040,000 40,000 40,000 40,000 40,000StormwaterPondRestoration2 SWD-13-002 1,000,0001,000,000StormwaterLiftstation(TH25Pond)2 SWD-13-003 200,000100,000 100,000StormWaterPondLining2 SWD-13-004 250,00050,000 50,000 50,000 50,000 50,000BoulevardDrainageTile2 1,650,00090,000 90,000 190,000 1,190,000 90,000Stormwater\DrainageTotal Streets MNC-13-001 185,00025,000 40,000 40,000 40,000 40,000CityStreetSigns2 MNC-14-001 865,000165,000 175,000 175,000 175,000 175,000AnnualChipSeal2 STR-13-001 500,00050,000 450,000SchoolBlvd/CedarStreetSignalSystem 2 STR-13-002 90,00090,000ParkingLotReconstruction3 STR-13-004 750,000250,000 500,000OverlayRuralOutlyingStreets2 STR-13-005 475,00025,000 450,000E7thStreet/Hwy25Intersection 3 STR-13-006 6,000,0001,200,000 4,320,000 480,000FallonAvenueOverpass3 STR-13-007 3,740,000250,000 3,300,000 190,000StreetReconstruction-Area5 3 STR-13-008 850,000850,000StreetReconstruction-Area6 3 STR-13-009 650,000650,000StreetReconstruction-Area7B 2 STR-13-010 475,000125,000 125,000 75,000 75,000 75,000StreetLightImprovements2 STR-13-014 2,096,0001,992,900 103,100TH25/CSAH75IntersectionImprovements 2 STR-14-001 303,100303,100TH25/85thStreetSignalandTurnLanes 2 STR-14-005 50,00050,000OakwoodSidewalk3 ProducedUsingthePlan-ItCapitalPlanningSoftware 215 Total20152016201720182019DepartmentProject#Priority 2,600,000220,000 690,000 1,040,000 650,000CapitalProjectFund 9,300,0001,200,000 7,620,000 480,000DebtProceeds 1,200,0001,110,900 89,100FederalAid 1,050,000190,000 215,000 215,000 215,000 215,000GeneralFund 506,000492,000 14,000MNDOTCIMS 1,858,1001,208,100 650,000StateAid 750,000500,000 250,000StreetConstructionFund 475,000125,000 125,000 75,000 75,000 75,000StreetLightingFund 90,00090,000WrightCounty 17,829,1005,136,000 9,653,100 1,810,000 940,000 290,000StreetsTotal STR-15-002 550,000550,000SchoolBlvd&TrailEdgeMill,Overlay,Underseal 2 STR-15-003 150,000150,000ElmStreetSidewalk-3rdStPedestrianBlinker 2 STR-15-004 100,000100,000SidewalkGapImprovementProject(TBD)2 17,829,1005,136,000 9,653,100 1,810,000 940,000 290,000StreetsTotal Utility-Sewage 8,272,0003,322,000 1,050,000 3,900,000DebtProceeds 2,395,000195,000 1,350,000 150,000 150,000 550,000SewageFund 10,667,0003,517,000 1,350,000 1,200,000 4,050,000 550,000Utility-SewageTotal UTS-13-001 1,250,000150,000 650,000 150,000 150,000 150,000AnnnualSewageTrunkImprovements2 UTS-13-004 1,672,0001,672,000WWTPPhosphorusReductionImprovements2 UTS-13-005 1,050,0001,050,000WWTPSolidsHandlingImprovements2 UTS-13-006 3,900,0003,900,000WWTPPhase2Improvements3 UTS-15-001 900,000900,000DigesterCovers(2)1 UTS-15-002 750,000750,000SludgeTankConversiontoDigester3 VEQ-13-001 400,000400,000SewerJetter2 VEQ-13-004 700,000700,000SCADASystem-Sewage 2 VEQ-14-005 45,00045,000NetworkOperationsPC2 10,667,0003,517,000 1,350,000 1,200,000 4,050,000 550,000Utility-SewageTotal Utility-Water 4,500,0004,500,000DebtProceeds 55,00055,000SewageFund UTW-13-001 1,150,000150,000 550,000 150,000 150,000 150,000AnnualWaterSystemImprovements3 UTW-13-002 4,500,0004,500,000WaterTreatmentFacility3 UTW-13-003 1,200,0001,200,000Well#6 3 UTW-13-004 126,000126,000Watermain-90thStreettoChelsea 2 UTW-13-005 130,000130,000BoosterStationUpgrade2 UTW-15-001 325,00065,000 65,000 65,000 65,000 65,000WaterMeterMXUs-SystemUpgrade 2 VEQ-13-002 60,00060,000Truck-RegularCab4XChasis+Accessories 2 VEQ-15-005 50,00050,000PublicWorksCartegraph3 7,541,000325,000 741,000 345,000 215,000 5,915,000Utility-WaterTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 216 Total20152016201720182019DepartmentProject#Priority 2,986,000270,000 741,000 345,000 215,000 1,415,000WaterFund 7,541,000325,000 741,000 345,000 215,000 5,915,000Utility-WaterTotal 61,818,50010,373,90013,368,600 5,543,300 9,570,00022,962,700GrandTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 217 Thispageintentionallyleftblank 218 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2015 APPENDIX 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] 219 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 Payable2014 StateTaxPayable 2014 ResidentialHomestead: 1st$500,0001 1.00%Nostatetax >$500,000 1.25% Non-homesteadResidential: Singleunit: 1st$500,0001 1.00%>$500,000 1.25%Nostatetax 2-3 unitbuildings 1.25% Market-rateApartments:1.25%Nostatetax Commercial/Industrial:Subjecttostate 1st$150,0002 1.50%levy(commercial- >$150,000 2.00%industrialrate) SeasonalRecreational Subjecttostate1st$500,000 1.00%levy(seasonal- >$500,000 1.25%recreationalrate) 220 TRUTH-IN-TAXATION TNTSummaryChartforTaxesPayable2015 Date Action OnorBefore Sept.15 Specialtaxingdistricts(EDAs,HRAs,portauthorities,etc.)mustadoptany proposedpropertytaxlevyandcertifytheproposedlevytothecounty auditor. OnorBefore Sept.30 Atonemeeting,thecitycounciladoptstheproposedpropertytaxlevyand announcesthetimeandplaceofafuturecitycouncilmeetingatwhichthe budgetandlevywillbediscussedandpublicinputallowed,priortofinal budgetandlevydetermination.Thispublicinputmeetingmustoccurafter Nov.24andmuststartatorafter6p.m.Thetimeandplaceofthepublic inputmeetingmustbeincludedintheminutesbutnewspaperpublicationof theminutesisnotrequired. Onorbefore Sept.30 Citiesmustprovidethecountyauditorwiththefollowinginformation: •Thetimeandplaceofthemeetingatwhichthebudgetandlevywillbe discussedandpublicinputallowed.(Again,meetingmustoccurafterNov.24 andmustnotstartbefore6p.m.) •Aphonenumberthatcitytaxpayersmaycalliftheyhavequestions relatedtotheauditor’spropertytaxnotice;thisdoesnotrequirelistinga privatephonenumber. •Anaddresswherecommentswillbereceivedbymail;thisdoesnot requirelistingaprivateaddress. Nov.11to Nov.24 Countyauditorpreparesandsendsparcelsspecificnotices. Nov.25to Dec.29 Citycouncilsholdmeetingtodiscussthebudgetandpropertytaxlevyand, beforeafinaldetermination,allowspublicinput. Onorbefore Dec.29 Citiesmustcertifyfinalpropertytaxlevytothecountyauditor. 221 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. 222 (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; 223 (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 224 tobeissuedandrefertothelistofindebtednesstobefundedorrefunded.Thisresolutionshallbe publishedonceeachweekfortwosuccessiveweeksinalegalnewspaperpublishedinthe municipalityoriftherebenosuchnewspaper,inalegalnewspaperpublishedinthecountyseat. Suchbondsmaybeissuedwithoutthesubmissionofthequestionoftheirissuetotheelectors unlesswithintendaysafterthesecondpublicationoftheresolutionapetitionrequestingsuch electionsignedbytenormorevoterswhoaretaxpayersofthemunicipality,shallbefiledwiththe recordingofficer.Ineventsuchpetitionisfiled,nobondsshallbeissuedhereunderunless authorizedbyamajorityoftheelectorsvotingonthequestion. Subd.3. 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. (d)Exceptinthecaseofturnlanes,safetyimprovements,realignments,intersectionmodifications, andthelocalshareofstateandcountyroadprojects,streetreconstructiondoesnotincludethe 225 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 273.11,subdivision16.Unlessotherwiseprovided,"marketvalue,""taxablemarketvalue,"and 226 "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. 227 UTILITYRATES Cf=cubicfeetorgal=gallon ResidentialWater:10,12,16,17 0-500cf(0-3,740gal)17.85 500-4000cf(3,741-29,920gal)=26,179gal 1.19/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.38/748galor100cf over13369cfover100,000gal 1.50/748galor100cf CommercialWater:11,11NT&11TX,13,90 0-500cf(0-3,740gal)17.85 500-4000cf(3,741-29,920gal)=26,179gal 1.19/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.38/748galor100cf over13369cfover100,000gal 1.50/748galor100cf Sprinklers-ResTwnhm&Commercial:30,31,31NT,32,32NT,91,91NT 1-500cf(1-3,740gal)17.85 500-4000cf(3,741-29,920gal)=26,179gal 1.19/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.38/748galor100cf over13369cfover100,000gal 1.50/748galor100cf IndustrialWater:14 AllWaterUsage 1.42/748galor100cf SewerRates-Residential&Commercial:20,25,26 0-500cf(0-3,740gal)21.69 over500cf(over3,740gal)3.89/748galor100cf SewerSpecialCases:SW21,SW22 26.93 IndustrialSewerRates:24 AllSewerUsage 2.33/748galor100cf BOD5(BiochemicalOxygenDemand).336/lb. TSS(TotalSuspendedSolids).462/lb. Testing Actualcost+10% SewerDischargeFee 2% WaterOn/OffCharge: ON$25&Off$25 WaterAvailabilityCharge: $40.25/year FinalBillProcessingFee: $20.00 1cf=7.48gallons Ratesfor2015UtilityBilling IncreasingBlockRates 228 USEFULTERMS(GLOSSARY) ACCOUNT:Anorganizationalorbudgetarybreakdownfoundwithincityfunds.Eachdepartment servesaspecificfunctionasadistinctorganizationalunitofgovernmentwithinthegivenfund.Its primarypurposeistofacilitateorganizationalandbudgetaryaccountability.Atermusedtoidentify anindividualasset,liability,expenditure(andotheruses),revenue(andothersources),orfund balance. ACCOUNTSPAYABLE:Amountsowedtoothersforgoodsorservicesreceived. ACCOUNTSRECEIVABLE:Amountsduefromothersforgoodsfurnishedorservicesrendered. ACCOUNTINGSYSTEM:Thetotalsetofrecordsandprocedureswhichareusedtorecord,classify andreportinformationonfinancialstatusandoperationsofanentity. ACCRUALBASISOFACCOUNTING:Themethodofaccountingunderwhichrevenuesarerecorded whentheyareearnedandexpendituresarerecordedwhengoodsandservicesarereceived. ACTIVITY:Aspecificanddistinguishablelineofworkperformedbyoneormoreorganizational componentsofagovernmentalunitforthepurposeofaccomplishingafunctionforwhichthe governmentalunitisresponsible.Forexample"Ice&SnowRemoval”isanactivityperformedin thedischargeofthe"PublicWorks"function. ADOPTION:FormalactiontakenbytheCityCounciltoauthorizeorapprovethebudget. ADVALOREM:Inproportiontovalue.Thebasisforlevyingtaxesonproperty. AGENCYFUND:Afiduciaryfundusedtoaccountforsituationswherethegovernment’sroleis purelycustodial. 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)To 229 attesttowhetherthestatementspreparedfromtheaccountspresentfairlythefinancialposition andtheresultsoffinancialoperationsoftheconstituentfundsandbalancedaccountgroupsofthe governmentalunitinaccordancewithgenerallyacceptedaccountingprinciplesapplicableto governmentalunitsandonabasisconsistentwiththatoftheprecedingyear;b)Todeterminethe propriety,legalityandmathematicalaccuracyofagovernmentalunit'sfinancialtransactions;c)To ascertainwhetherallfinancialtransactionshavebeenproperlyrecorded;d)Toevaluatethe stewardshipofpublicofficialswhohandleandareresponsibleforthefinancialresourcesofa governmentalunit. 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$10,000ormoreandausefullifeofmorethanone reportingperiod. CAPITALEXPENDITURES:Acapitalexpenditure occurswhenacapitalassetispurchased.Capitalassets areusedinoperationsandhaveinitialusefullivesextendingbeyondasinglereportingperiod.These assetsmustalsomeetcapitalizationthresholds,whichvarybyassetclassificationandtypicallycostsmore than$10,000.Land,improvementstoland,vehicles,machinery,equipment,infrastructureandother tangibleandintangibleassetsusedinoperationsareexamplesofcapitalassets.Expendituresthatdonot 230 benefitmorethanonereportingperiodormeetthecapitalizationthresholdsareclassifiedacurrent expenditure. CAPITALIMPROVEMENTBUDGET:Aplanofproposedcapitalexpendituresandameansof financingthem.Thecapitalbudgetisenactedaspartofthecompleteannualbudget. CAPITALPROGRAM:Aplanforcapitalexpenditurestobeincurredeachyearoverafixedperiod ofyearstomeetcapitalneedsarisingfromthelong-termworkprogramorotherwise.Itsetsforth eachprojectorothercontemplatedexpenditureinwhichthegovernmentistohaveapartand specifiesthefullresourcesestimatedtobeavailabletofinancetheprojectedexpenditures. CAPITALPROJECTSFUNDS:Fundtypeusedtoaccountforfinancialresourcestobeusedforthe acquisitionorconstructionofmajorcapitalfacilities. 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:Anobligationresultingborrowingmoneyorpurchasinggoodsandservices. DEBTLIMIT:Themaximumamountofgrossornetdebt,whichislegallypermitted. DEBTMARGIN:Theamountofavailabledebt,whichmaybeissuedbyagovernmentalunitbefore reachingitsdebtlimit. 231 DEBTSERVICEFUND:Afundtypeusedtoaccountfortheaccumulationofresourcesandforthe paymentofgenerallong-termdebtprincipalandinterest. DEPARTMENT:Basicorganizationalunitofgovernment,responsibleforcarryingoutrelated functions. DEPRECIATION:Expirationintheservicelifeofcapitalassetsattributabletowearandtear, deterioration,actionofthephysicalelements,inadequacyorobsolescence. DEPUTYREGISTRAR(DMV):CityserviceofissuingStateissuedlicensesformotorvehiclesand equipment,suchaslicenseplatesandtabsforcars,trucks,trailers,andrecreationalvehicles. DISTINGUISHEDBUDGETPRESENTATIONAWARDSPROGRAM:Avoluntaryawardsprogram administeredbytheGovernmentFinanceOfficersAssociationtoencouragegovernmentsto prepareeffectivebudgetdocuments. ENTERPRISEFUND:Aproprietaryfundtypeusedtoreportanactivityforwhichafeeischargedto externalusersforgoodsorservices.Intheory,thesefundsoperateinamannersimilartoprivate businessenterprises,wheretheintentofthegoverningbodyistorecoverthecostofdelivering servicesthroughuserfeesorcharges(Water,Sewage,Liquor,DeputyRegistrar,FiberOpticfunds). ESTIMATEDMARKETVALUE:Representsthesellingpriceofapropertyifitwereonthemarket. Estimatedmarketvalueisconvertedtotaxcapacitybeforepropertytaxesarelevied. EXPENDITURE:Whereaccountsarekeptontheaccrualormodifiedaccrualbasisofaccounting, thecostofgoodsreceivedorservicesrenderedwhethercashpaymenthavebeenmadeornot. Whereaccountsarekeptonacashbasis,expendituresarerecognizedonlywhenthecash paymentsfortheabovepurposesaremade. FIBERNETMONTICELLO(FNM):ThenameoftheCity’sfiberopticnetwork,whichprovides internet,phone,andcabletelevisiontoresidentsandbusinessesofMonticelloasaCityrun enterprise. FIDUCIARYFUND:Afundclassificationusedtoreportassetsheldinatrusteeoragencycapacityfor othersandthereforecannotbeusedthegovernment’sownprograms. FINES:Revenuesfrompenaltiesimposedforviolationoflawsorregulations. FISCALPOLICY:Agovernment’spolicieswithrespecttorevenues,spending,anddebtmanagement astheserelatetogovernmentservices,programsandcapitalinvestment.FiscalPolicyprovidesan agreed-uponsetofprinciplesfortheplanningandprogrammingofbudgetsandtheirfunding. FISCALYEAR:ThebudgetandaccountingyearthatbeginsonthefirstdayofJanuaryandendson thelastdayofDecemberofeachyear. 232 FULLTIMEEQUIVALENT(FTE):Thenumberofemployeehours(2,080)neededtobeequaltoone fulltimeemployee.SeveralparttimeemployeesmaybecombinedtomakeoneFTE. FUNCTION:Agroupofrelatedactivitiesaimedataccomplishingamajorserviceorregulatory programforwhichthegovernmentunitisresponsible. FUND:Anindependentfiscalandaccountingentitywithaself-balancingsetofaccountsrecording cashand/orotherresourcestogetherwithallrelatedliabilities,obligations,reserves,andequities whicharesegregatedforthepurposeofcarryingonspecificactivitiesorattainingcertain objectives. FUNDBALANCE:Governmentalfundassetsminusliabilities(equity). 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. 233 INFLOW/INFILTRATION(I/I):Thetermusedtodescribecleanwaterenteringintothesanitary sewersystem. 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. 234 MARKETVALUEEXCLUSION(MVE):ProvisionintheStatepropertytaxsystemwhichexemptsor removesaportionofapropertiesmarketvaluefrompropertytaxes. 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. 235 PROPRIETARYACCOUNTS:Thoseaccountswhichshowactualfinancialpositionandoperation,such asactualassets,liabilities,reserves,fundbalances,revenues,andexpenditures,asdistinguished frombudgetaryaccounts. PUBLICSAFETY:Toaccountforexpendituresrelatedtotheprotectionofpersonsandproperty. PUBLICWORKS:ToaccountforexpendituresforthemaintenanceofCitypropertyand infrastructure. PURPOSE:Abroadstatementofthegoals,intermsofmeetingpublicserviceneeds,thata departmentisorganizedtomeet. REFUNDINGBONDS:Bondsissuedtoredeemoutstanding(unpaid)debt. 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(suchasthroughdebt covenants),grantors,contributors,orlawsorregulationsofothergovernments;orb)Imposedby lawthroughconstitutionalprovisionsorenablinglegislation. REVENUE:Thetermdesignatesanincreasetoafund'sassetswhich:1)doesnotincreasealiability; 2)doesnotrepresentarepaymentofanexpenditurealreadymade;3)doesnotrepresenta cancellationofcertainliabilities;and4)doesnotrepresentanincreaseincontributedcapital. REVENUEBOND:Abondthatisbackedbyaparticularrevenuesourcesuchaswateruserfees. SERVICELEVELS:Datatodeterminehoweffective/efficientaprogramisinachievingitsobjective. SPECIALASSESSMENT:Acompulsorylevymadebyalocalgovernmentagainstcertainproperties todefraypartorallofthecostofaspecificimprovementorservicewhichispresumedtobeof generalbenefittothepublicandofspecialbenefittosuchproperties. 236 SPECIALREVENUEFUND:Toaccountforrevenuederivedfromspecificrevenuesourcesthatare legallyrestrictedforspecificpurposes. SY:Abbreviationforsquareyard,whichishowsealcoating/streetoverlayprojectsaremeasured. TAXCAPACITY:Anamountdeterminedbyapercentageofaproperty'smarketvalue,whichisthen 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. TRUSTFUND:Afundconsistingofresourcesreceivedandheldbythegovernmentalunitas trustee,tobeexpendedorinvestedinaccordancewiththeconditionsofthetrust. UNASSIGNEDFUNDBALANCE:ThisistheresidualclassificationfortheGeneralFund.Thisisfund balancethathasnotbeenreportedinanyotherclassification.TheGeneralFundistheonlyfund thatcanreportapositiveunassignedfundbalance.Othergovernmentalfundswouldreportdeficit fundbalancesasunassigned. UNBALANCEDBUDGET:Abudgetwhichundesignatedfundbalanceorreservesareusedor increased,inordertobalanceestimatedrevenuestoestimatedexpendituresorexpenses. UNRESERVEDFUNDBALANCE:Theportionofafund’sbalancethatisnotrestrictedforaspecific purposeandisavailableforgeneralappropriation. 237 USERFEE:Theservicechargefordeliveringaspecificservicetoaonebenefitingparty. UTILTYVALUATIONTRANSITIONAID(UVTA):AStatefinancialaidprogramfor2009and2010paid tolocalgovernmentstooffsetthereducedpropertytaxrevenuegeneratedbyutilitypropertiesdue tothestatereducingthetaxratepaidonutilityproperty. WORKLOADDATA:Aunitofworktobedone. ACRONYMS CAFRComprehensiveAnnualFinancialReport CD CertificateofDeposit CIP CapitalImprovementPlan CP CommercialPaper CPI ConsumerPriceIndex DMV DepartmentofMotorVehicleorDeputyRegistrar HACAHomesteadandAgriculturalCreditAid EBI EffectiveBuyingIncome EDA EconomicDevelopmentAuthority MVE MarketValueExclusion EMV EstimatedMarketValue FHLB FederalHomeLoanBank FNC FinancialNortheasternCompanies FNM FiberNetMonticello FNMAFederalNationalMortgageAssociation FTE FullTimeEquivalent GAAPGenerallyAcceptedAccountingPrinciples GASBGovernmentalAccountingStandardsBoard GFOAGovernmentFinanceOfficer’sAssociation GO GeneralObligation I/I Inflow/Infiltration LGA LocalGovernmentAid MCC MonticelloCommunityCenter MCESMetropolitanCouncilEnvironmentalServices MVHCMarketValueHomesteadCredit SAC SewerAvailabilityCharge SY SquareYard TIF TaxIncrementFinancing UVTAUtilityValuationTransitionAid WAC WaterAvailabilityCharge 238 BackCover