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2016 BudgetADOPTED BUDGET SCA . Y:MA R Table of Contents Table of Contents Directory of Public Officials Distinguished Budget Presentation Award Budget Message Community, Demographic and Statistical Information Map Strategic Planning: Vision, Mission and Goals Core Values Planning Processes 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 (and Calendar) Organization Chart All Funds Summary By Fund Type All Funds Summary By Year Changes in Fund Balance/Working Capital Fund Balance History Balanced Budgets Capital Expenditures (Recurring vs Nonrecurring) Tax Levy History Tax Capacity History Revenue Sources by Fund Long Range Financial Plans Long Term Fiscal Objectives Capital Investments and Operating Budgets Legal Debt Limit and Bond Rating Bond Rating Scales Debt Service Levy History G.O. Debt Service G.O. Debt Levels Effect of Debt Levels on Government Operations 5 6 7 20 23 24 26 27 33 33 35 35 37 38 39 40 44 47 48 49 53 54 55 56 57 58 57 60 61 62 64 69 72 74 75 76 77 78 79 1 Debt Levels by Fund Type Interfund Transfers Staffing Summary Revenue Trends & Analysis Appropriations by Type 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 and Parking Lots Public Works - Ice & Snow Removal Public Works - Shop & Garage Public Works - Stormwater Public Works - Street Lighting Public Works - Refuse Collection Transit Senior Center Park Operations Park Balfields Shade Tree Library Insurance Special Revenue Funds - Summary Economic Development Authority Fund Cemetery Fund 80 81 82 83 92 95 98 99 101 102 104 105 106 107 109 111 113 115 116 118 120 121 123 124 126 127 129 131 133 135 136 138 140 141 142 143 145 147 148 150 151 153 154 156 2 Minnesota Investment Fund Community Center Fund Debt Service Funds - Summary 2007A G.O. Improvement 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 2015B G.O. Street Reconstruction and Improvement Bond Fund Closed Debt Service Funds 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 Capital Improvement Plan - Funding Source Summary Capital Improvement Plan - Projects & Funding Sources By Department CIP Projects Appendix Property Tax Basics Truth-In-Taxation Debt Guide Minnesota Statutes Utility Rates Capitalization Thresholds Useful Terms (Glossary) 158 160 163 164 166 168 170 172 174 176 177 178 180 182 184 186 188 190 191 192 194 198 200 202 205 206 208 211 211 218 219 225 229 229 231 232 239 243 244 245 3 TheBudget It’sclearlyabudget. It’sgotalotofnumbersinit. GeorgeW.Bush Thebudgetisnotjustacollectionofnumbers, butanexpressionofourvaluesandaspirations. JacobLew EveryfamilyinAmericaknowstheyhavetodoabudget.Everysmallbusinessin Americaknowstheyhavetodoabudget.Everylocalgovernment,everystate, knowstheyhavetodoabudget. JohnBoehner 4 DIRECTORYOFPUBLICOFFICIALS MAYOR&CITYCOUNCIL Position NameTermExpires Mayor......................................................................BrianStumpf12/31/2016 Council.....................................................................GlenPosusta12/31/2016 Council.....................................................................TomPerrault12/31/2016 Council......................................................................LloydHilgart12/31/2018 Council...............................................................CharlotteGabler12/31/2018 CITYSTAFF CityAdministrator.......................................................JeffO’Neill FinanceDirector.....................................................WayneOberg PublicWorksDirector............................................WayneOberg CommunityDevelopmentDirector.................AngelaSchumann CommunityCenterDirector.......................................KittyBaltos EconomicDevelopmentDirector................................JeffO’Neill City Clerk ..........................................................Jennifer Schreiber Human Resource Manager........................................Tracy Ergen Chief Building Official ...................................................John Rued City Engineer .....................................................................Vacant Fire Chief ....................................................................Daryl Gilles Deputy Registrar Manager .................................Carolyn Granger Liquor Store Manager ........................................Randall Johnsen Finance Manager ...........................................Sarah Rathlisberger Street Superintendent..............................................Tom Moores Parks Superintendent ................................................Tom Pawelk Water &Sewage Superintendent ...........................Matt Theisen JOINT CITY/COUNTY/OUTSIDE STAFFING Wright County Sheriff................................................Joe Hagerty WSB Engineering Consultant.................................Shibani Bisson Veolia Environmental Services .................................Chuck Keyes 5 DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presentedan awardofDistinguishedBudgetPresentationtotheCityofMonticelloforitsannualbudgetforthe fiscalyearbeginningJanuary1,2015.Thecityhasreceivedthisawardforeachbudgetithas preparedforthepastfouryears. Inordertoreceivethisaward,agovernmentalunitmustpublishabudgetdocumentthatmeetsprogram criteriaasa policydocument,asanoperationsguide,asafinancialplanandasacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuestoconformto programrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityforanotheraward. GOVERNMENTFINANCEOFFICERSASSOCIATION D istinguished B udgetPresentation Award PRESENTEDTO CityofMonticello Minnesota FortheFiscalYearBeginning January1,2015 ExecutiveDirector 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 Thisbudgetdocumentwaspreparedafteranalyzingandevaluatingrequestsfromthevarious departments.Thecontentrepresentstherequestedfinancialsupportfortheoperationofthecity ofMonticellofortheupcomingfiscalyear.Revenueestimatesareconservativeandrealistic.The importanceofasoundrevenuepicturecannotbeoverstated.Revenueestimatesarebasedon historicaltrendswithgreaterweightplacedonthemostcurrentyears. ThecityofMonticelloprovidesarangeofservicestothecommunity,includingpoliceandfire protection,streetandparkmaintenance,snowandiceremoval,waterandsewerutilityservices, andadministrativeandplanningservices.Inadditionthecityownsandoperatesacommunity center(MCC),departmentofmotorvehicles(DMV),municipaloff-saleliquorstore,andafiberoptic network(FiberNetMonticello).Thelevelofserviceprovidedbytheproposedbudgetissimilarto thatcurrentlyenjoyedbythecommunity. KEYINITIATIVES ThecityofMonticelloprovidesafullrangeofmunicipalservices,aslistedinthepreviousparagraph andasauthorizedbystatestatute.Monticelloisblessedwithmanyassets,includingabeautiful setting,anexcellentlocation,arichheritage,andatalentedpopulation.Thecityseekstouse, preserveandenhancetheseassetsinbuildingagreat,affordableplacetolive,workanddo business.Thecitywillfulfillthegoalsbelowtoachievethismission: 1.Continuetomaintainthelowestpossibletaxratewhileprovidingthebestpossibleservice. Whilethe2016propertytaxlevyexceededinflation,thecity’sportionofthetaxlevy (capacity)ratedeclinedslightlyfrom2015.2016Budget:$390,000(4.6%)levyincrease plus$280,000HousingandRedevelopmentlevy.Totaltaxlevyincrease:$670,000(7.9%). Thetaxlevyrateisstillnearly10%lessthanthenextlowestrateforcitiesinWrightCounty. 7 2.Continuetodevelopandprovideanunequaledsystemofparks,trailsandrecreational facilities,includingtheuniqueassetsoftheMonticelloCommunityCenter,theMississippi River,andconversionoftheBertramChainofLakespropertyintoaregionalpark. Inpartnershipwiththecounty,thecitycontinuestoacquireparklandwithstategrantsand localcontributions.Thecityandcountyevenlysplitthelocalcontribution,whichisroughly 10%forlanddesignatedfornon-athleticpurposesand50%forlanddesignatedforathletic purposes.2016Budget:$563,000 3.Continuetomaintainthecitystreetsbyfollowinganannualsealcoatandcrackseal programandbyoverlayingstreetsbeforetheyarebeyondrepairandneedreplacing. Thecity’spavementmanagementprogramidentifiesvaryingconditionlevelsofevery street.The2016GeneralFundincludesarobustamountforchip/sealmaintenance.This high-levelofmaintenancebeganin2014.2016Budget:$180,000 4.Developandadoptalong-rangetransportationplanwhichwillimprovetrafficflowaround andthroughthecity. Anengineeringstudyforidentifyinganinterstateinterchangesiteonthewest-endofthe cityisincludedinthebudget.Thecityisalsoanactive,duepayingmemberoftheI-94 Coalition.2016Budget:$25,000–study;$6,600-membership 5.Implementthedowntownredevelopmentplanwhichwillmaintainadowntownareathat combinesasuccessfulcommercialdistrict,communityidentityandheritage,and connectionwiththeMississippiRiver. TheEconomicDevelopmentAuthorityFundincludesataxincrementfinancing(TIF1-22) districtthataccumulatesresourcesfordowntownredevelopmentexpenditures.Thecity continuestomodifyTIF1-22parameterstospurdevelopment.TheEDAwillcreate interfund-loantypearrangementsasneeded.2016Budget:$55,000 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.2016Budget:$150,000 8 8.Continuetomaintainhighqualitywaterandsewagetreatmentfacilities. WiththesomeofthelowestwaterandsewageratesinMinnesota,thecityprovides excellentservicesfromthesetwoutilitiestoresidentsandbusinesses.Thebudgetincludes fundsforwastewatertreatmentfacilityimprovementsalongwithsufficientamountsfor additional,ongoingsystemimprovementsineachfund.Ourwaterisratedasoneofthe besttastinginMinnesota.2016Budget:Water-$300,000annually;Sewage-$300,000 annuallyand$2,000,000wastewaterfacility 9.Provideunequaledaccesstoinformationwithhighspeedinternet,phoneandtelevision throughthecity-ownedfiberopticnetwork. TheFiberOpticsFundwillreceiveatransferfromtheLiquorFundtocontinueoperationsin 2016.Withsettlementofthebondholder’sclass-actionlawsuit,themissionofthecity’s telecommunicationsutilitywillcontinuetoadapttochangingcompetitivemarket conditions.2016Budget:$350,000Transfer Citycouncilandstaffusedthegoalssetduringthestrategicplanningprocesstodirectthe developmentofthe2016budget. TOTALBUDGET The2016budgetincludesallthefundsmaintainedbythecity.Eachfundisresponsibletoaccount foraparticularactivityoractivities.Eachfund-typewillbediscussedwithinthismessageandinthe budgetdocument. Thefollowingcomparestheadopted2015and2016budgets: Fund-type 2015 2016 2015 2016 GeneralFund 7,246,000$7,596,000$7,246,000$7,596,000$ SpecialRevenueFunds 3,905,133 2,928,036 3,593,787 2,693,552 DebtServiceFunds 4,692,361 4,262,539 5,620,651 5,109,484 CapitalProjectFunds 4,941,170 9,139,720 7,263,000 11,835,000 EnterpriseFunds 14,307,084 13,318,709 15,336,310 15,250,060 InternalServiceFunds 436,911 508,844 645,360 881,240 Total 35,528,659$37,753,848$39,705,108$43,365,336$ Revenues Expenditures TotalBudget Totalrevenuesandexpendituresincreased6%and9%,respectively.GeneralFundrevenuesand expendituresincreased4.8%.Thedecreaseindebtserviceexpendituresreflectsamortizationof existingdebtoutpacingtheadditionofnewdebt.Capitalprojectfundswillincurhigher expendituresbecauseoftheTH25/CSAH75project,primarilysupportedbyfederalfunds,andthe 9 2016CoreStreetReconstructionproject.Financedbystategrantsandloansandstartedin2015, improvementsatthecity’swastewatertreatmentplantwillhavealegacyimpacton2016 enterprisefund-typeexpenditures. Thefollowinggraphsdisplaytherevenuesandexpendituresattributabletoeachfund-typeinthe 2016Budget: GeneralFund 20% Special Revenue Funds 8%DebtService Funds 11% Internal ServiceFunds 2% Capital ProjectFunds 24% Enterprise Funds 35% 2016REVENUESBYFUND-TYPE GeneralFund 18%Special Revenue Funds 6%DebtService Funds 12% Internal ServiceFunds 2% Capital ProjectFunds 27% Enterprise Funds 35% 2016EXPENDITURESBYFUND-TYPE 10 PROPERTYTAXES ThestateofMinnesotahasgrantedlocalmunicipalitiestheauthoritytolevytaxestofund operationsanddebtpayments.ForthecityofMonticello,thepropertytaxlevyaccountsforover 80%ofrevenuesintheGeneralFundandover30%inthespecialrevenuefunds.In2016,debt servicesfundswillreceive$1,290,000inpropertytaxesforprincipalandinterestpaymentson generalobligationdebt,whichis2%higherthantheprioryear.Supplementedwithtransfersfrom utilityfunds,reservesindebtservicefundswillalsocontributetothecity'sdebtpayments.For 2016,thecity'sgeneral(operationsanddebt)propertytaxlevywillincreaseto$8,925,000,an increaseof$390,000(4.6%).Forthefirsttime,thecityimposedaHousingandRedevelopment Authority(HRA)specialbenefitlevyof$280,000.Thespecialbenefitlevywillbereceiptedinthe EconomicDevelopmentAuthorityFund.Whenaddedtogether,thetwoleviesrepresenta7.9% increaseinpropertytaxes. Thefollowingtableprovidesahistoricalviewofthetaxcapacityvalue,taxcapacityrateandtaxlevy withouttheHRAlevy: TaxCapacity CapacityTaxCapacity Rate Tax Levy Year Value %Change Rate %Change Levy %Change 2006 13,224,144 11.7%51.040 -18.3%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 23,882,689 30.9%35.737 -20.0%8,535,000 4.7% 2016 25,872,567 8.3%34.496 -3.5%8,925,000 4.6% Undercontract,theWrightCountyassessorvaluesallpropertieslocatedwithinthecity’scorporate limits.Thismarketvalueisappliedtotheclassratesassignedbythestatetodetermineaproperty's taxcapacity.Thecountyestimatesthecity'staxcapacityfortaxespayablein2016at$25,872,567 whichisan8.3%increase.TheremainderofanXcelEnergynuclearpowerplantuprateadded$80 milliontothecity’staxablemarketvalue.Thecity'spropertytaxlevyisdividedbythetaxcapacity todeterminethecity'staxcapacityrate.Thetaxcapacityrateisappliedtoeachproperty'stax capacitytodeterminethetaxthecitywillcollectbeforeanycreditsareapplied.For2016,thecity's taxrateisexpectedtochangefrom35.737%to34.496%,a3.5%decrease. Thecityatthistimedoesnothavetheauthoritytolevyorcollectlocalsalestaxesorothertypesof taxesunderthestate'staxsystem. 11 PERSONNELSERVICES Thecity's2016budgetincludesfournewpositions(twoareconversionfrompart-timetofull-time), astepincreaseforemployeesstillmovingupthepayscalesystemanda3%wageadjustment(2% inJanuaryand1%inJuly)forallemployees.In2013,thecityre-institutedthestep-payscaleplan discontinuedin2010.PublicWorksemployeesbelongtoaunion.Theunion’scollectivebargaining agreementexpiresMarch31,2017. Thecitywillparticipateintheunion’shealthinsuranceplanin2016.Theunion’splanrequiresaflat premiumforunionandnon-unionfull-timeemployeesregardlessofparticipation.Monthlyhealth insuranceplancostsincrease$50peremployee,withemployeespaying$25.Staffwillcontinueto explorewaystoreducefuturepremiumincreasestoboththecityanditsemployees. Whiletherearenewpositionsinthe2016budget,thecitycontinuestoexperimentwithdifferent staffingscenarios.Onesuchexperimenthasmergedthedutiesandresponsibilitiesofthefinance directorandthepublicworksdirector. ThecontributionratestothePublicEmployeesRetirementAssociation(PERA)willremainthesame in2016forbothemployerandemployees.Effective2016PERArates:7.50%ofwagesfor employerand6.50%foremployee.ThebudgetalsoestimatesFICAandMedicaretaxesat6.20% and1.45%respectivelyfor2016. Theremainderofthissectionwilldescribethemajorinitiativesfor2016foreachofthefundtypes andtheiractivities. GENERALFUND Expenditures The2016budgetincreased4.8%overthe2015budget.AnnualtransferstotheEconomic DevelopmentFund($94,900in2015)willbeeliminatedwithinitiationoftheHRAlevy.Thewage andbenefitsincreasecomprisedabout1.5%ofthetotalincrease.Bothpublicsafetyandpublic worksincludeanewposition. Thefollowingscheduledisplays2016budgetedGeneralFundexpendituresbydepartment comparedwiththeprioryears: Department 2015 2016 %Change GeneralGovernment 1,489,753$1,552,077$4.2% PublicSafety 1,897,908 2,077,441 9.5% PublicWorks 2,612,303 2,860,439 9.5% Transit 40,000 40,000 0.0% Recreation&Culture 1,034,637 1,058,022 2.3% Unallocated 7,329 8,021 9.4% OperatingTransfers 164,070 --100.0% 2016GeneralFundExpendituresandOtherUses 12 General Government 20% PublicSafety 27% PublicWorks 38% Recreation 14% Other 1% GeneralFundExpenditures-2016 ThePublicWorksDepartmentisthelargestdepartmentintermsofbudgetedexpendituresandthe streetandalleysactivitybudgetisthelargestactivitywithinthedepartment.The2016budgetfor thePublicWorksincreased9.5%.Streetsandalleys(+10%),Iceandsnow(+13%),refusecollection (+4%),shopandgarage(+5%),publicworksadministration(+58%)arelargelyresponsibleforthe overallincrease.Publicworksadministrationincludedthereplacementofthepublicworksdirector. Aswithalldepartments,personnelservicesincreasedwithwageandbenefitinflation. ThesecondlargestdepartmentbasedonexpendituresisthePublicSafetyDepartment.Public safetyactivitiesincludelawenforcement,fire,buildinginspections,civildefense,NationalGuard, andanimalcontrol.ThecitycontractswiththeWrightCountySheriff'sdepartmentforlaw enforcement.The2016contractincludesa$2.50increaseinthehourlyrateataservicelevel,which remainsfourhourslessperdaythanwhatitwasin2013. Thefireandrescueactivityincreased26%andincludeda$2.00perhourwageincreaseforpaidon- callvolunteers.Additionoffull-timehelpincreasedthebuildinginspectionsactivity(+21%).The PublicSafetyDepartmentbudgetincreased9.5%in2016. Theoverallbudgetforgeneralgovernmentactivitiesincreased4%fortheupcomingyear.Elections increasedsignificantlybecause2016isageneralelectionyear.Theincreaseinplanningandzoning (+8%)isbudgetadjustmenttoprioryearactualamounts.Financeincreasedwithwagesand benefitstochangeonepart-timeemployeetofull-time.ThePrairieCenterdropisin-linewith historicaltrendsandremovalfromthetaxrollsafterthelossofaprivatetenant.Asasidenote,IT servicescostsaredistributedtoeachbudget.TheITFundcentralizesITcostsintoonereportingunit andallocatesthemtoeachbudgetunitbasedonuse.TheITServicesFundstartedinthelatterhalf of2013. 13 Recreationandcultureincreasedby2%in2016.Parkoperationactivities(+3%)increasedbecause ofwageandbenefitinflation.Thehighershadetree(+8%)activitybudgetdemonstratesadesireto improveMonticello’slivabilityandmoreaccuratelyreflectactualcosts. In2015,operatingtransferstootherfundsincluded$94,900totheEDAFundand$69,170tothe CapitalProjectsFundforfinancingassistanceonvariousprojects.Bothwereeliminatedfor2016. Includingservicesforpolice,assessor,andlegalservices,otherservicesandchargesaccountfor 49%ofGeneralFundappropriations.Appropriationsforpersonnelservicesfollowwith39%ofthe totalandriseswithwageandbenefitinflationplusthenewpositions.Capitaloutlayincreasedalong withleasepayments,internalrenttotheCentralEquipmentFund.Ahighercapitalizationthreshold of$10,000resultedinhighersuppliescosts. Thefollowingtableandgraphprovideperspectiveonexpendituresandotherusesforthevarious GeneralFundclassificationsinthe2016budget: Classification 2015 2016 %Change PersonnelServices 2,734,757$2,979,264$8.9% Supplies 580,800 662,900 14.1% OtherServices&Charges 3,570,773 3,712,936 4.0% CapitalOutlay 195,600 240,900 23.2% OperatingTransfers 164,070 --100.0% Total 7,246,000$7,596,000$4.8% 2016GeneralFundAppropriations Personnel Services 39% Supplies 9% Capital Outlay 3% Other Services& Charges 49% ExpendituresandOtherUses-2016 14 Revenues TherevenuesandothersourcestosupportGeneralFundexpendituresandotherusesareclassified asfollows: Classification 2015 2016 %Change PropertyTaxes 5,882,000$6,177,000$5.0% Franchise&OtherTaxes 236,500 283,900 20.0% Licenses&Permits 321,180 338,900 5.5% IntergovernmentalRevenues 299,677 301,177 0.5% ChargesforServices 267,261 267,664 0.2% Fines&Forfeits 42,100 42,100 0.0% SpecialAssessments 300 300 0.0% Miscellaneous 196,982 184,959 -6.1% OperatingTransfers ----- Total 7,246,000$7,596,000$4.8% 2016GeneralFundRevenuesandOtherSources TheGeneralFundstaxlevyincreasesby5.0%,whiletheGeneralFund’sportionoftheoveralllevy decreasesfrom69%to67%.Licenses&permitsreflectamodestuptickinresidentialand commercialdevelopment,whichreboundedin2013andcontinuedthrough2015.Supporting additionalstreetlightingactivity,franchiseandothertaxesareexpectedtoincrease20%. Intergovernmentalrevenuesarerecoveringslightlyalongwiththestate’sfinances.Chargesfor servicesreflectminorincreasesforpublicsafetyandotherservices.Miscellaneousrevenues,which includeinvestmentearnings,areconservativelypredictedtodecline6%. Thepropertytaxlevygenerates81%oftheGeneralFundrevenues.Otherthanfranchisefees,the citydoesnothavetheabilitytoimposeothertaxes,suchaslocalsalestaxesorincometaxes. Therefore,thecitywillcontinuetobedependentonpropertytaxrevenueasitsmajorsourceof futurerevenues. SPECIALREVENUEFUNDS ThecityofMonticellocurrentlyoperatesspecialrevenuefundsforeconomicdevelopment, cemetery,andcommunitycenteractivities.SpecialrevenuefundsalsoincludetheMinnesota InvestmentFund,butitwilllikelyseeverylittleactivityin2016. LiketheGeneralFund,thespecialrevenuefundbudgetsaresetataleveltomaintainservices.A portionofthetaxlevysupportscommunitycenteroperations.The2016declineinpropertytaxes reflectthe$1,005,000dropinthelevyneededtosupportcommunitycenterdebtservice,withthe lastpaymentin2015.Taxincrementssupporteconomicdevelopmentactivitiesbuttheiruseis generallyrestrictedtospecificareas.IntheEconomicDevelopmentAuthorityFund,taxincrements decreasewiththedecertificationoftwoTIFdistricts.Inthesamefund,operatingtransfersdecrease withinitiationofthe$280,000HousingandRedevelopmentspecialbenefitlevy. 15 Thefollowingtablesdisplaythechangeinrevenuesandothersourcesandthechangein expendituresandotherusesforspecialrevenuefundsin2016: Classification 2015 2016 %Change PropertyTaxes 1,363,000$644,000$-52.8% TaxIncrements 726,215 677,244 -6.7% ChargesforServices 1,416,100 1,413,110 -0.2% Miscellaneous 304,918 193,682 -36.5% OperatingTransfers 94,900 --100.0% Total 3,905,133$2,928,036$-25.0% 2016SpecialRevenueFundRevenues&OtherSources Classification 2015 2016 %Change PersonnelServices 1,018,942$1,159,115$13.8% Supplies 262,171 202,428 -22.8% OtherServices&Charges 606,988 878,772 44.8% CapitalOutlay 428,786 253,237 -40.9% OperatingTransfers 1,276,900 200,000 -84.3% Total 3,593,787$2,693,552$-25.0% 2016SpecialRevenueFundAppropriations DEBTSERVICEFUNDS Thecity'sdebtservicefor2016is$5,109,484or$511,369lessthantheprioryear.Fundingfordebt servicecomesfromspecialassessments,taxincrements,propertytaxesandtransfersfromthe stormwateraccessfundandthewaterandsewagefunds.Additionalresourcesmaybeneededin onedebtservicefundbecausetwoparcelswith$1.7millioninspecialassessmentsreceivedagreen acresdeferral.Thereserveintheaffectedfundwillbedrawndownuntilotherresourcesbecome available.Furthertransfersfromutilityfundswillsupplanttransfersfromdepletedandclosed accessfunds.Outstandingdebt:debtservicefunds-$20,018,000;enterprisefunds-$2,945,000; internalservicefunds-$840,000.Thecity'sbondratingfromMoody’sInvestorsServicesisan"A2". CAPITALPROJECTFUNDS Thebudgetforcapitalprojectfundsarebasedonthe2016projectexpenditureslistedinthecity's five-yearcapitalimprovementplan.Thecity'sfive-yearcapitalimprovementplanisincludedina latersectionofthisreport.Thecityhasthreemajorprojectsmovingforwardin2016:TH25/CSAH75 intersection,FallonAvenueoverpass,and2016CoreStreetReconstruction.Theintersectionand overpassprojectswillbefundedinitiallybystatestreetaid--intergovernmentalrevenue. ENTERPRISEFUNDS Totalenterpriserevenuesandothersourcesareestimatedat$13,178,259for2016.The2016 budgetincludes$2.0millionindebtproceedsforundrawnloanamountsforwastewatertreatment plantimprovements(capitaloutlay).Operatingtransfersfromotherfundsinclude$350,000from 16 anotherenterprisefund:LiquorFundtoFiberOpticsFund.ThechangeinSaleofGoodsrepresents aconservativebudgetpolicyofestimatingfuturemunicipalliquorsalesat98%actualsalesforthe prioryear. Classification 2015 2016 %Change SaleofGoods 4,973,000$5,367,710$7.9% Licenses&Permits 3,700 3,700 0.0% ChargesforServices 5,236,534 5,241,070 0.1% SpecialAssessments 30,000 30,000 0.0% Miscellaneous 151,400 185,779 22.7% OperatingTransfers 450,000 350,000 -22.2% DebtProceeds 3,322,000 2,000,000 -39.8% Total 14,166,634$13,178,259$-7.0% 2016EnterpriseFundRevenues&OtherSources Classification 2015 2016 %Change PersonnelServices 1,844,478$2,097,728$13.7% Supplies 4,196,200 4,385,536 4.5% OtherServices&Charges 3,075,998 3,083,464 0.2% CapitalOutlay 4,277,000 2,766,000 -35.3% DebtService 359,698 492,198 36.8% OperatingTransfers 1,582,936 2,425,134 53.2% Total 15,336,310$15,250,060$-0.6% 2016EnterpriseFundAppropriations Personnelservicesincreasewithnewpositionsandhigherwagesandbenefits.Otherservicesand chargesincreaseslightlyandnoincreasewasbudgetedforthewastewatertreatmentplant operator.DebtserviceincreaseswithadditionaldebtintheSewageFund.Higheroperating transfersfromutilityfundssupplantthedepletionofimpactfeesfromtheSanitarySewerand WaterAccessfundsandinclude$1Mforwaterimprovementsplannedaspartofthe2016Core StreetReconstructionproject. 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 recordedasexpendituresinotherfunds. 17 FUNDBALANCES Forthemostpart,fundbalancesintheGeneralFundandMonticelloCommunityCenterFundare expectedtobestablefor2016.FundbalancesintheWaterFundwilldeclinebecauseofa$1 milliontransfertotheCapitalProjectsFundforthe2016CoreStreetReconstructionproject.Debt servicetransfersandongoingcapitalexpenditureswillcausethefundbalanceintheSewageFund todeclineby$600,000.Nointerfundloansareinthe2016budget.Variousdebtservicefundswill seedeclineswithamortizationofspecialassessments.Capitalprojectfundswillexperiencea declineinreservesastheyprovidefinancingfornon-recurringcapitalexpenditures. Totalexpendituresexceedtotalrevenuesby$5.6millioninthe2016budget.Thecityaccumulates moneyindebtservicefundstomakedebtservicepaymentsinthefollowingyear.Thedeclinein debtservicefundreservescorrelatewithlowerfuturepaymentsasdebtisamortized.Further, reserveswillprovidenearly$2.7millioninfinancingfornon-recurringexpendituresincapital projectfunds.Asignificantportionofthesecostswillbereimbursedwithproceedsfromfuture debt.Further,somedebtproceedsreceivedin2015willbespentin2016.Thecityadopted balancedbudgetsforboththeGeneralFundandtheMonticelloCommunityCenterFundfor2016. CHALLENGESINCONTEXT Thepreparationofthisbudgetreflectsthecollisionofbothshort-termandlong-termchallenges. Thelackofanticipatedeconomicdevelopmentfromaprolongedrecessionandanemicrecovery continuestohaveasignificantimpactonthecity’sfinances.First,lowimpactfeerevenuehas causedthecitytolookatotherfinancingoptions,suchasusingutilityfundrevenues,tomakedebt servicepayments.Thecouncil’sgoalofmaintainingalowtaxlevymakesthisanevengreater challenge.Thecrushondebtservicefundssupportedbyimpactfeeshasbeenabatedwithtransfers fromutilityfundsandearlyassessmentpayoffs. Second,thecitywillrealizeasignificantdropinthetaxlevyneededtosupportdebtservicein2016. Thedropwouldhavebeenapproximately$1millionhaditnotbeenforthe$500,000thecityneeds tolevyannually,beginningin2016,forthenext15yearsonthejudgmentbonds.Theremaining $500,000ofthedropwillbeusedfornewdebtserviceandcapitalprojectsin2016.Eventually,debt serviceexpenditureswillclimbabovethe2015level. Third,thesettlementofthetelecommunicationbondholder’sclass-actionlawsuitprovided certaintyandallowedcityleaderstofocusonotherconcernssuchasday-to-dayoperationsat Fibernet.Thecityismovingaheadwithlargercapitalprojectsfor2016andthereafter.Alllarge projectshavereimbursementresolutions,meaningthecitywilllikelyrecovertheirtemporarydraw onreserveswithdebtproceeds.Onelargeprojectin2016,TH25/CSAH75intersection improvements,isprimarilyfinancedwithintergovernmental(federalorstate)revenue. Fourth,newleadershiptookoverin2015(firstbudget–2016).Thelong-timemayorchosenotto runforre-electionandaservingcouncilmemberwaselectedtotherole.Inaddition,onenew councilorwasseatedin2015.The2016budgetwillbesubjecttominormodificationaspriorities 18 changeasthatyearprogresses.Growththemesandemphasisonpublicsafetywilllikelydominate indraftingthe2016budget.Theelectioncyclecreatedanearlyopportunityfortheapprovalof projectsinadvanceofelectionresults. Insummary,modesteconomicimprovement,debtamortization,stabilizationinFibernet operations,andnewleadershipimpactedthedecisionsmadeindraftingthe2016budget. DISTINGUISHEDBUDGETPRESENTATIONAWARD TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)presenteda DistinguishedBudgetPresentationAwardtotheCityofMonticello,Minnesotaforitsannualbudget forthefiscalyearbeginningJanuary1,2015.Inordertoreceivethisaward,agovernmentalunit mustpublishabudgetdocumentthatmeetsprogramcriteriaasapolicydocument,asan operationsguide,asafinancialplan,andasacommunicationsdevice. Thisawardisvalidforaperiodofoneyearonly.Webelieveourcurrentbudgetcontinuesto conformtoprogramrequirements,andwearesubmittingittoGFOAtodetermineitseligibilityfor anotheraward. CONCLUSION Conservationofcityfinancialresourcescontinuestobeaveryimportantobjective.Thebudgetis theprimetoolinmakingsurelimitedresourcesarewiselyutilized.Itisourbeliefthatthe2016 budgetallowsthecitytodeliverexcellentmunicipalservicesinacosteffectiveandefficientmanner atcurrentlevels.The2016budgetisaproductofcollectiveeffortsbythecitycouncil,staffand variousotherstakeholders.Theircommitment,goodjudgmentandexpertiseareinvaluabletothe budgetprocess. Sincerely, JeffO’Neill WayneW.Oberg CityAdministrator FinanceDirector 19 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 2006 61,904 4.3%4.0% 2007 62,767 5.1%4.6% 2008 63,324 6.1%5.4% 2009 62,001 8.9%7.8% 2010 64,462 8.0%7.4% 2011 65,454 6.8%6.5% 2012 66,382 5.8%5.6% 2013 67,180 5.0%4.9% 2014 68,190 4.1%4.1% 2015 69,853 3.7%3.6% 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 20 Monticello’spopulationandhouseholdsare.2%ofstate’stotalforbothmeasures.WithaWal-Mart,Target, andHomeDepot,itisnosurprisethatretailsalesperpersonarehigherthanthestateaverage.Thefollowing tablecontainsselectedfactsonthecity: PeopleQuickFacts Monticello Minnesota Population,2015estimateJuly1 13,136 5,489,594 Population,2010 12,759 5,303,925 Population,percentchange,April1,2010toJuly1,2015 3.0%2.9% Personsunder5years,percent,2010 10.1%6.7% Personsunder18years,percent,2010 30.8%24.2% Persons65yearsandover,percent,2010 9.5%12.9% Femalepersons,percent,2010 50.8%50.4% Whitepersons,percent,2010(a)92.6%85.3% Totalnumberoffirms,2007 1,258 496,657 Retailsalespercapita,2007 $26,337 $13,751 Landareainsquaremiles,2010 8.94 79,626.74 Personspersquaremile,2010 1,427.2 66.6 Housingunits,2010 4,973 2,347,201 Homeownershiprate,2010-2014 75.0%72.1% Medianvalueofowner-occupiedhousingunits,2010-2014 $168,100 $185,200 Households,2010-2014 4,693 2,115,337 Personsperhousehold,2010-2014 2.73 2.48 Percapitamoneyincomeinthepast12months(2014dollars)$28,188 $31,642 Medianhouseholdincome,2010-2014 $73,151 $60,828 Thenuclearplantaccountsforapproximately40%ofcity’smettaxcapacity.Xcel’staxcapacityandthe council’sconservativetaxlevyphilosophyaremainreasonsthecitytaxcapacityrateisthesecondlowestin WrightCounty.Indeed,upgradestotheXcelplantin2011contributedto15%declineinthe2013tax capacityrate.Likewise,Xcelupgradesin2013produceda20percentdeclineinthe2015taxrate.Thetax baseisaboutone-thirdresidentialandtwo-thirdscommercial.Thefollowingtableliststhetaxratesforeach cityinWrightCounty,Minnesota: 2012 2013 2014 2015 2016 2015-162015-16 City TaxRate TaxRate TaxRate TaxRate TaxRate Change Change% CityofMonticello 49.773 42.234 44.709 35.732 34.497 -1.235 -3.5% CityofSt.Michael 39.110 43.917 41.843 38.476 37.748 -0.728 -1.9% CityofOtsego 41.454 46.160 44.575 41.162 37.890 -3.272 -7.9% CityofHanover 48.719 52.398 52.141 48.207 48.366 0.159 0.3% CityofAlbertville 46.645 51.924 51.092 51.273 52.364 1.091 2.1% CityofDelano 52.587 59.746 56.681 54.081 53.481 -0.600 -1.1% CityofMontrose 55.864 67.204 60.204 57.218 54.595 -2.623 -4.6% CityofBuffalo 47.076 51.834 49.893 52.456 54.847 2.391 4.6% CityofRockford 54.427 59.487 59.032 57.335 56.633 -0.702 -1.2% CityofDayton 57.817 63.921 65.600 56.945 57.093 0.148 0.3% CityofMapleLake 54.242 56.283 57.733 59.139 59.225 0.086 0.1% CityofAnnandale 64.886 73.113 71.525 69.012 68.913 -0.099 -0.1% CityofHowardLake 68.778 74.718 76.180 72.093 71.601 -0.492 -0.7% CityofClearwater 86.244 87.552 87.259 75.294 75.770 0.476 0.6% CityofCokato 77.094 80.941 74.684 80.426 77.718 -2.708 -3.4% CityofWaverly 82.562 90.842 93.137 87.064 83.285 -3.779 -4.3% CityofSouthHaven 117.591 130.981 137.657 130.381 134.182 3.801 2.9% CITYTAXRATESINWRIGHTCOUNTY,MINNESOTA 21 Monticellogrewbyapproximately20%inthelasttenyears.Thecityhasampleundevelopedcommercial andresidentialrealestateandispositionwelltobenefitfrommoreurbanflightfromtheTwinCities.Access tomajortransportationcorridorsmakesthecityanideallocationforfuturegrowth.Thefollowingtable includespopulationstatisticsoverthelasttenyears: YearPolulationChange 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 2015 13,125 132 TheabovestatisticsreflectamoreaccurateCensuscount,whichisthe2011total.Theothercountsare fromthestatedemographer. 22 MAPOFMONTICELLO,MINNESOTA 23 STRATEGICPLANNING:VISION,MISSIONANDGOALS StrategicPlanning Variouscitystaffmemberscontinuetomeetregularlytoidentify,review,andrefinetasksthathelp meetpreviouslyestablishedGoalsandActionstepsforMonticello.Thevisionstatementandgoals identifiedbelowwereprovidedbystaffandincorporatedintothebudgetapprovedbycouncil.City staffworkedonthecreationofaplan,comprisedofactionstepsandtaskstobecompletedto assistinmeetingthegoals.Thisframeworkhighlightedkeyinitiativesthatareincludedinthe budgetmessage. Vision:Monticello,Minnesota:Monticellowilluse,preserveandenhance itsassetstobuildathrivingcommunity inwhichtolive,work,shopandplay. Mission:Toenhancethequalityoflifethroughexcellenceinpublicservice. GoalsandActionSteps: 1.Provideprofessional,transparent,andethicalpublicservices whichareresponsivetothecommunityandwithinavailable resources. –Fostercollaborativeopportunities –Enhancecommunication –Exploreanddevelopnewprogramsandservices –Acceptresponsibilitytodomore –Holdemployeesaccountable 2.Buildastrongteamofelectedofficials,staffandcitizens. –Evaluate,enhanceandexpandcommunication –Enhance,expandanddiversifypubliceducationandoutreach –Buildcommunityspirit –Promotecommunitybrand –Increasevolunteerism 24 3.Supportthedevelopmentofabusinessandfamily-friendly communitythatissafe,sustainable,andconnected. –Facilitatedevelopmentandredevelopmenttosupportarapidlychangingworld –Promoteandamendexistingprogramsandservices –AddressthehousingneedsofcurrentandfutureMonticelloresidents –Maintaincompetitiveadvantagewithtaxandutilityrates –Positionlandfordevelopment 4.Committoastrongfinancialposition. –Preservationofassets –Financialpositioningtoimproveservicesandvaluetocommunity –Adoptsustainablespendingpatterns –Recovercostbymatchingcurrentandfutureresidentswithserviceuse 5.Approachtoday’schallengeswithasenseofurgencyand“can- do”attitude. –Provideleadership –Definevaluesandculture –Employeeselectionanddevelopment –Tailorwageandbenefitprogramstoattractandretaintalent 6.Strivetodoourbestwhenencounteringandrespondingto futurechallenges. --Evaluateexistingprogramsandservices –Redefininggovernmentascustomerservice –Positioningtoimproveservicesandvaluetocommunity 25 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. 26 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,includesfundsforinterpretingandimplementingthe 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/CSAH75Intersectionimprovementstobeconstructedin2016,Fallon AvenueOverpass-rightofwayacquisitionanddesignanticipatedin2016,Regional transportationplanningtoaddresstheTH25corridor,TH25/7th Streetintersection improvements--plannedfor2016. 3.Parks&PathwaysPlan-Adopted2011. Chapter4–ParksoftheMonticelloComprehensivePlanwasamendedin2011forthe adoptionofanupdatedParkandPathwayPlan.TheMonticelloParksandPathwaysPlan identifiestheCity’sobjectivesforParksandPathwaysplanninganddevelopment,building ontheexistingparksinfrastructure,andprovidescontextfortheCity’sparticipationinthe acquisitionanddevelopmentoftheBertramChainofLakesRegionalPark.The2016Park andPathwayDedicationFundbudgetincludes$45,000foraSpiritHillspathwayconnection 27 and$200,000forinterimimprovements,aswellas$563,000forPhase9and10land acquisitions.TheGeneralFundincludes$40,000forannualimprovementstoexisting pathways,whichwerepreviouslyfinancedbytheParkandPathwayDedicationFund. 4.EmbracingDowntownPlan–Adopted2012 Chapter3–LandUseoftheMonticelloComprehensivePlanwasamendedin2012forthe adoptionoftheEmbracingDowntownPlan.TheEmbracingDowntownPlanisan implementationplanwhichintegratesmarket,transportation,landuse,andfinance considerationsforthepurposeofcreatingavibrantdowntowndistrict. 5.EconomicDevelopmentStrategicPlan–Pending The2016EconomicDevelopmentFundbudgetincludes$12,000formarketmatching activities,whichincludesstrategicplandevelopment.In2016,thecityimplementeda HousingandRedevelopmentAuthoritypropertytaxlevyfor$280,000.Thisfirst-timeand likelyrecurringHRAlevywillbeusedbytheEDAforredevelopmentactivities. 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(southern25-30acres)forathleticcomplexrecreationalplan. Amoredetailedplanforathleticcomplexdevelopmentisanticipatedaspartof2016 planningprocess.The2016ParkandPathwayDedicationFundbudgetincludes$563,000 foradditionalparklandacquisition. 28 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, C.IllicitDischargeDetectionandElimination, D.ConstructionSiteStormwaterRunoffControl, E.Post-ConstructionStormwaterManagementMeasures;and, F.PollutionPrevention/GoodHousekeepingMeasures. Zoning,subdivisionandillicitdischargeordinanceswereadoptedin2014relatedto grading,drainage,erosioncontrol,andstormwatermanagementtomeetcurrentMPCA requirementsperthecity’snewMS4permit.IssuedonJanuary16,2014,thepermitexpires July31,2018. 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. 29 TheseguidelinesarenowreferencedintheCity’szoningandsubdivisionordinanceswere adoptedin2014relatedtograding,drainage,erosioncontrol,andstormwater management.TheDesignManualisanticipatedtobeupdatedin2016. 11.GeneralSpecificationsandStandardDetailPlatesforStreetandUtilityConstruction- Updated2015. ThesespecificationsrepresenttheCity’srequirementsforconstructionofpublicstreetand utilitysystems. 12.WaterSystemPlan–Adoptedin2004. Awaterdistributionsystemmodelwascreatedin2004toevaluatetheexistingwater system.Thewatersystemplanwasthendevelopedusingthismodeltoidentifywater systemcapitalimprovementsnecessarytoservefuturelandusedesignationsinaccordance withtheCity’sComprehensivePlan.Theupdateofthisplanisscheduledin2017,estimated costof$50,000. 13.SanitarySewerComprehensivePlan–Adoptedin1995. Thesanitarysewercomprehensiveplanswasadoptedin1995andidentifiedtheexisting sanitarysewersystemandalsoprojectedfuturewastewaterflowsandserviceareasbased futurelandusedesignationsinaccordancewiththeCity’sComprehensivePlan.Several individualsanitarysewerstudiesweredevelopedaftertheadoptionofthisplaninresponse todevelopment.The2016budgetincludes$50,000forupdatingthisplanandcreatinga systemmodel. 14.InterchangePlanningStudy–Pending(2015/2016). TheInterchangeplanningstudywilldetermineareasonablelocationorlocationsfora futureI-94InterchangewithintheCitywestofTH25.The2008ComprehensivePlan recognizesthattheNorthwestMonticello,whichincludestheCSAH39toOrchardRoad corridor,asaprimaryfocusforfuturedevelopmentandfurthercitestheInterchange Planningasacriticalcomponentofunderstandinggrowthpotentialandlanduseinthe NorthwestArea.The2015budgetincludes$25,000forthestudy. 30 15.WellheadProtectionPlan(Part1and2)-expectedtobecompleted2016. ThegoaloftheWellheadProtectionPlanistopreventhuman-causedcontaminantsfrom enteringthewatersupplywellsandtoprotectallwhousethewatersupplyfromadverse healtheffectsassociatedwithgroundwatercontamination.ThepreparationoftheCity’sas requiredbyMinnesotaRules4720.5100to5720.5590.TheWaterFund2015budget includes$20,000forcompletionofthisstudy.Part1wascompletedin2015andPart2is scheduledforcompletionin2016. 16.TH25/RegionalTransportationPlanningGroup–Ongoing. AseriesofmeetingshavetakenplacewithrepresentativesinvitedfromtheCityofBigLake, BigLakeTownship,CityofBecker,BeckerTownship,WrightCounty,SherburneCounty, MnDOTDistrict3andtheCityofMonticellotodiscussregionaltransportationplanning.A jointpoweragreementwasbythecityinDecember2015. PlansforFacilityandInfrastructureMaintenance: 1.WastewaterTreatmentFacilityBiosolidsDewatering,EnergyEfficiency,Headworksand SiteImprovementsFeasibilityReport–Adopted2012. Dewateringfacilityiscompleteatyear-end2014.Theenergy-efficientaerationblowers andpipingwillbecompletedin2016.ThisprojectisfinancedbytheSewageFund. 2.WastewaterTreatmentPhosphorusReductionFacilityPlan–Adopted2014. Constructionbeganin2015andtheprojectshouldbecompletedbytheendof2016.The facilityplanwasamendedtoincludereplacementoftwodigestercovers.Thedigester coversarepartofthecurrentconstructionproject.Theproject’sestimatedfinalcostis$3.5 million,financedbya$2.4millionloanand$1.2milliongrant,bothfromtheMinnesota PublicFacilitiesAuthority. 3.OverallStreetReconstructionProgram–Adopted2004,ongoingaspartofcapital improvementplan. The2015-2019CapitalImprovementPlanincludesprojectsrelatedtotheprogram,with designworkbeginningonArea5inlate2015andconstructionbeginninginthemiddle 2016.ThecityheldastreetreconstructionplanpublichearinginJune2015.Theproject withinfrastructureandamenitiesisestimatedat$6million. 31 4.TransportationProjects TH25/7th StreetSignalImprovements–Thisprojectwillincludeflashingyellowarrows (estimatedat$250,000),northboundandsouthboundrightturnlanesonTH25anda westbound7th Streetrightturnlanein2016(estimatedat$1.5million).Bothprojectsare inthecapitalimprovementplan.ConstructionoftheTH25/CSAH75improvementswill occurin2016withanestimatedcostof$1.5million.FallonAvenueOverpassright-of-way acquisitionanddesignisanticipatedin2016. FinancialPlans: 1.AnnualBudget-AdoptedeachDecember. 2.CapitalImprovementsPlan-Updatedandadoptedeachyear;mostrecentlyfor2016- 2020. 32 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. Oneofthestatedpurposesofthebudgetistopresentapictureofcitygovernmentoperationsand intentionsfortheyeartothecitizensofMonticello.Presentingabudgetdocumentthatisunderstandable tothecitizensfurthersthegoalofeffectivelycommunicatinglocalgovernmentfinanceissuestoboth electedofficialsandthepublic. 3.Budgetaryemphasiswillfocusonprovidingthosebasicmunicipalserviceswhichprovidethe maximumlevelofservices,tothemostcitizens,inthemostcosteffectivemanner,withdue considerationbeinggiventoallcosts--economic,fiscal,andsocial. AdherencetothisbasicphilosophyprovidesthecitizensofMonticelloassurancethattheir governmentandelectedofficialsareresponsivetothebasicneedsofthecitizensandthatitscity governmentisoperatedinaneconomicalandefficientmanner. 4.Thebudgetwillprovideforadequatemaintenanceofcapital,plant,andequipmentand fortheirorderlyreplacement. Allgovernmentalentitiesexperienceprosperoustimesaswellasperiodsofeconomicdecline.In periodsofeconomicdecline,propermaintenanceandreplacementofcapital,plant,andequipmentis generallypostponedoreliminatedasafirstmeansofbalancingthebudget.Recognitionoftheneedfor adequatemaintenanceandreplacementofcapital,plant,andequipment,regardlessoftheeconomic conditions,willassistinmaintainingthegovernment'sequipmentandinfrastructureingoodoperating condition. 33 5.Thecitywillavoidbudgetarypracticesthatbalancecurrentexpendituresattheexpenseof meetingfutureyearexpenditures. 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’sproposedgenerallevyhastobecertifiedtothecountyauditorby September30th.Thecity’sproposedHRA(housingandredevelopmentlevy)mustbecertifiedby September15th.ThefinalleviesforbothhavetobecertifiedbyDecember29th. 34 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 35 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 theregularoperatingbudgetassmalltoolsandequipmentorrepairsandmaintenance. TheCapitalImprovementProgram(CIP)differentiatesthefinancingofhighcostlong-livedphysical improvementsfromlowcost"consumable"equipmentitemscontainedintheoperatingbudget.CIPitems maybefundedthroughdebtfinancingorcurrentrevenueswhileoperatingbudgetitemsareannualor routineinnatureandshouldonlybefinancedfromcurrentrevenues. 6.SpendingPolicy:Thecitywillspenditsresourcesinthefollowingorder.Resourceswillbe categorizedaccordingtoGenerallyAcceptedAccountingPrinciples(GAAP)forstateandlocal governments,withthefollowinggeneraldefinitions: •Restricted--Amountsconstrainedtospecificpurposesbytheirproviders(suchas grantors,bondholders,andhigherlevelsofgovernment)throughconstitutional provisionsorbyenablinglegislation. •Committed--Amountsconstrainedtospecificpurposesbythecitycouncil;tobereported ascommitted,amountscannotbeusedforanyotherpurposeunlessthecitycouncil takesactiontoremoveorchangetheconstraint. •Assigned--Amountsthecityintendstouseforaspecificpurpose;intentcanbe expressedbythecouncilorbyanofficialorbodytowhichthecouncildelegatesthe authority.Thecitycouncilcandelegatethisauthoritytothecityadministrator. 36 •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-termdebtwillprovideassurancethatfutureresidentswillbeabletoservicethedebtobligationsleft byformerresidents. 2.Thecitywillrepayborrowedfunds,usedforcapitalprojects,withinaperiodnotto exceedtheexpectedusefullifeoftheproject. Thispolicyreflectstheviewthatthoseresidentswhobenefitfromaprojectshouldpayforthe project.Adherencetothispolicywillalsohelppreventthegovernmentfromover-extendingitselfwith regardtotheincurrenceoffuturedebt. 37 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 canbeexpressedbythecouncilorbyanofficial(cityadministratororfinance director)orbodytowhichthecouncildelegatestheauthority. •Unassignedfundbalance--Amountsthatareavailableforanypurpose;these amountsarereportedonlyintheGeneralFundoradeficitinotherfundtypes. 2.Aminimumlevelofgeneralfundreserveequalto45%ofannualoperatingexpendituresornoless thanfivemonthsofoperatingexpenditureswillbemaintainedbythecity.Thisreserveiscommittedto beusedfor:cashflowpurposes,accruedemployeepayrollbenefitswhicharenotshownasaliability, unanticipatedequipmentacquisitionandreplacement,andtoenablethecitytomeetunexpected expendituredemandsorrevenueshortfalls. Propertytaxesrepresentthecity'sprimarysourceofgeneralfundrevenue.Propertytaxesare collectedinJuneandDecemberofeachfiscalyear.Sincethecity'sfiscalyearbeginsonJanuary1st,thecity mustmaintainanadequatecashbalanceinordertomeetitsexpenditureobligationsbetweensemi- annualcollectionsofpropertytaxes. Accruedemployeepayrollbenefits,suchassickleave,vacationorpaid-timeoff, representasignificantobligationofthecity.Thecitywillmaintainsufficientreservesto meetitsannualexpenditureobligations. 38 Thecityrecognizestheneedtomaintainadequateequipmentinordertocarryoutrequiredpublic services.Equipmentacquisitionandreplacementrepresenton-goingcostsofarelativelyminornature,as comparedtomajorcapitalpurchases.ThecityplansforequipmentreplacementwithintheCapital ImprovementProgram.However,unforeseenequipmentproblemswillarise.Thereservewillprovide resourcesfortheimmediate,unanticipatedreplacementofcriticalequipment. Thecityissubjecttorevenueshortfallsandunexpectedexpendituredemandsduringthefiscalyear. Anunassignedgeneralfundreservewillbemaintainedtobeabletooffsettheserevenueshortfallsormeet unexpecteddemandsoccurringduringtheyear,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 financialleadership.Theprogramencouragesgovernmentstoprepareandpublishaneasilyreadableand understandablecomprehensiveannualfinancialreportcoveringallfundsandfinancialtransactionsofthe governmentduringtheyear.TheCAFRprovidesuserswithawidevarietyofinformationusefulin evaluatingthefinancialconditionofagovernment.Theprogramalsoencouragescontinuedimprovement inthecity'sfinancialreportingpractices. 4.Thecitywillensuretheconductoftimely,effective,andannualauditcoverageofall financialrecordsincompliancetheLocal,State,andFederallaw. Auditsofthecity'sfinancialrecordsprovidethepublicassurancethatitsfundsarebeingexpended inaccordancewithLocal,State,andFederallawandinaccordancewithGenerallyAcceptedAccounting 39 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,butarereportedas reductionoflong-termdebtliabilityontheGAAPbasis. Recordingcapitaloutlaysandprincipalpaymentsonlong-termdebtasexpendituresfor budgetpurposes,presentsaclearerpictureofthecity’sfinancialoperations,iseasierto administerforcashflowpurposes,andiseasierforthelaypersontounderstand. CashManagement&Investment POLICYSTATEMENT Theinvestmentprogramshallbeoperatedinconformancewiththecitycharter,statelaw,andlocal ordinancesandresolutions. SCOPE ThepolicyshallapplytotheinvestmentofallgeneralandspecialfundsofthecityofMonticelloover whichitexercisesfinancialcontrol.Proceedsfromcertainbondissues,aswellasseparate foundationassets,maybecoveredbyaseparatepolicy. POOLINGOFFUNDS Exceptforcashincertainrestrictedandspecialfunds,thecitywillconsolidatecashandreserve balancesfromallfundstomaximizeinvestmentearningsandtoincreaseefficiencieswithregardto investmentpricing,safekeepingandadministration.Investmentincomewillbeallocatedtothe variousfundsbasedontheirrespectiveparticipationandinaccordancewithgenerallyaccepted accountingprinciples.Poolingalsomaximizestheamountoffundsavailableforinvestment. 40 OBJECTIVES Theprimaryobjectives,inorderofpriority,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 valueofportfoliowillfallduetochangesinmarketinterestratesby:structuringthe investmentportfoliosothatsecuritiesmaturetomeetcashrequirementsforongoing operations,therebyavoidingtheneedtosellsecuritiesontheopenmarketpriortomaturity; investingoperatingfundsprimarilyinshorter-termsecurities,moneymarketmutualfunds, orsimilarinvestmentpools,therebylimitingtheaveragematurityoftheportfolioin accordancewiththispolicy. b.Liquidity Theinvestmentportfolioshallremainsufficientlyliquidtomeetalloperatingrequirementsthatmay bereasonablyanticipated.Thisisaccomplishedbystructuringtheportfoliosothatsecuritiesmature concurrentwithcashneedstomeetanticipateddemands(staticliquidity).Furthermore,sinceall possiblecashdemandscannotbeanticipated,theportfolioshouldconsistlargelyofsecuritieswith activesecondaryorresalemarkets(dynamicliquidity).Alternatively,aportionoftheportfoliomay beplacedinmoneymarketmutualfundsorlocalgovernmentinvestmentpoolswhichoffersame- dayliquidityforshort-termfunds. c.Yield Theinvestmentportfolioshallbedesignedwiththeobjectiveofattainingamarketrateofreturn throughoutbudgetaryandeconomiccycles,takingintoaccounttheinvestmentriskconstraintsand liquidityneeds.Returnoninvestmentisofsecondaryimportancecomparedtothesafetyand liquidityneeds.Thecoreinvestmentsarelimitedtorelativelylowrisksecuritiesinanticipationof earningafairreturnrelativetotheriskbeingassumed.Securitiesshallgenerallybehelduntil maturitywiththefollowingexceptions:1)asecuritywithdecliningcreditmaybesoldearlyto minimizethelossofprincipal,2)asecurityswapthatwouldimprovethequality,yield,ortarget durationintheportfolio,and3)liquidityneedsoftheportfoliorequirethatthesecuritybesold. PRUDENCE Thestandardofprudencetobeusedbyinvestmentofficialsshallbethe"prudentperson"standard andshallbeappliedinthecontextofmanaginganoverallportfolio.Investmentofficersactingin accordancewithwrittenproceduresandthisinvestmentpolicyandexercisingduediligenceshallbe 41 relievedofpersonalresponsibilityforanindividualsecurity'screditriskormarketpricechanges, provideddeviationsfromexpectationsarereportedinatimelyfashionandtheliquidityandthesale ofsecuritiesarecarriedoutinaccordancewiththetermsofthispolicy. The"prudentperson"standardstatesthat,"investmentsshallbemadewithjudgmentandcare, undercircumstancesthenprevailing,whichpersonsofprudence,discretionandintelligenceexercise inthemanagementoftheirownaffairs,notforspeculation,butforinvestment,consideringthe probablesafetyoftheircapitalaswellastheprobableincometobederived." Pursuanttostatestatute,thecityisrequiredtosecureannuallyacompleted“NotificationtoBroker andCertificationbyBroker”form.Thisformstatesthatinvestmentsmustmeetstaterequirements andcitypolicyrestrictions. ELIGIBLEINVESTMENTS a.Deposits InaccordancewithMinnesotaStatutes,thecitymaintainsdepositsatthosedepositorybanks authorizedbythecitycouncil,allofwhicharemembersoftheFederalReserveSystem. MinnesotaStatutesrequirethatallcitydepositsbeprotectedbyinsurance,suretybond,or collateral.Themarketvalueofthecollateralmustbeaminimumof110%ofthedepositsnot coveredbyinsurance,bonds,orirrevocablestandbylettersofcredit(140%inthecaseofmortgage backedcollateral). Authorizedcollateralincludesthelegalinvestmentseligibleinvestments(below),aswellascertain firstmortgagenotes,andcertainotherstateorlocalgovernmentobligations.MinnesotaStatutes requirethatsecuritiespledgedascollateralbeheldinsafekeepingbythecityclerkorinafinancial institutionotherthanthatfurnishingthecollateral. b.Investments ThecityisauthorizedbyMinnesotastatutestoinvestinthefollowing: 1.DirectobligationsorobligationsguaranteedbytheUnitedStatesoritsagencies,its instrumentalities,ororganizationscreatedbyanactofcongress,excludingmortgagebacked securitiesdefinedashighrisk. 2.SharesofinvestmentcompaniesregisteredundertheFederalInvestmentCompanyActof 1940andwhoseonlyinvestmentsareinsecuritiesdescribedin(a)above,generalobligation tax-exemptsecurities,orrepurchaseorreverserepurchaseagreements. 3.GeneralobligationsofthestateofMinnesotaoranyofitsmunicipalities(“A”ratingforG.O, or“AA”forrevenuebonds). 4.BankersacceptanceofUnitedStatesbankseligibleforpurchasebytheFederalReserve System. 5.CommercialpaperissuedbyUnitedStatescorporationsortheirCanadiansubsidiaries,ofthe highestquality,andmaturingin270daysorless. 6.RepurchaseorreserverepurchaseagreementswithbanksthataremembersoftheFederal ReserveSystemwithcapitalizationexceeding$10,000,000,aprimaryreportingdealerinU.S. 42 governmentsecuritiestotheFederalReserveBankofNewYork,orcertainMinnesota securitiesbrokerdealers. 7.FuturecontractssoldunderauthorityofMinnesotaStatutes471.56,Subd.5. 8.GeneralobligationdebtoftheMinnesotaHousingFinanceAgency(MHFA)rated“A”or better. 9.Obligationsofanindependentschooldistrict(ISD)withanoriginalmaturitynotexceeding13 monthsandratedinthehighestcategorybynationalratingagenciesorenrolledinacredit enhancementprogram. ETHICSANDCONFLICTSOFINTEREST Officersandemployeesinvolvedintheinvestmentprocessshallrefrainfrompersonalbusiness activitythatcouldconflictwiththeproperexecutionandmanagementoftheinvestmentprogram, orthatcouldimpairtheirabilitytomakeimpartialdecisions.Employeesandinvestmentofficials shalldiscloseanymaterialinterestsinfinancialinstitutionswithwhichtheyconductbusiness.They shallfurtherdiscloseanypersonalfinancial/investmentpositionsthatcouldberelatedtothe performanceoftheinvestmentportfolio.Employeesandofficersshallrefrainfromundertaking personalinvestmenttransactionswiththesameindividualwithwhombusinessisconductedon behalfofthecity. POLICYREVISIONS Thecashmanagementandinvestmentpolicywillbereviewedperiodicallybythecity administrator/cityclerkandfinancedirectorandmaybeamendedbycitycouncilactionas conditionswarrant. 43 FINANCIALSTRUCTURE Tobetterunderstandthisbudgetdocument,abasicunderstandingofthestructure,often-used terms,andfundtypesishelpful. Thecity’soperatingexpendituresareorganizedintothefollowinghierarchicalcategories:fund department,activity,andbudgetunits. Fund:Funds (specificorgeneralpurpose)representsthehighestlevelofsummarizationusedin thecity’sfinancialstructure.Thislevelisprimarilyusedforentity-widefinancialreportingand forsummarizationinthisbudgetdocument. Department:Departmentisthesecondlevelofsummarizationusedinthecity’sfinancial structure.Thefunctionclassificationrepresentsagroupingofrelatedoperationsandprograms aimedataccomplishingabroadgoalorprovidingamajorservice. Departments(Functions) GeneralGovernment PublicSafety PublicWorks RecreationandCulture Other Activity:Departmentscanbefurthersplitintodivisionswhichareusuallyassociatedwithfunctioningwork groupsthathavemorelimitedsetsofworkresponsibilities.Theirprimarypurposeisorganizationaland budgetaryaccountability. BudgetUnit:Activitiesmaybefurthersubdividedintobudgetunits.Abudgetunitisusedto accountforaspecificserviceperformedwithinanactivityinthepursuitofindividualgoalsand objectives.Abudgetunitisaimedataccomplishingaspecificserviceorregulatoryprogramfor whichagovernmentisresponsible. GOVERNMENTALFUNDTYPES GeneralFund:Thegeneralfundisusedtoaccountforallfinancialresourcesofthecity,exceptfor thoserequiredtobeaccountedforinanotherfund.Thegeneralfundsupportssuchbasicservices asthelegislativebranch,judicialbranch,generaladministration,police,fire,finance,streets, engineering,recreation,andlibraryservices. RevenueSources:Thecity'sGeneralFundisfinancedprimarilybypropertytaxeswhichprovide over80%ofthegeneralfundrevenue.Otherrevenuesourcesinclude:licensesandpermits, intergovernmentalrevenue,chargesforservices,finesandforfeitures,interestoninvestments,operating transfers,andmiscellaneousrevenues. 44 SpecialRevenueFunds:Specialrevenuefundsareusedtoaccountfortheproceedsofspecificrevenue sources(otherthanspecialassessments,expendabletrusts,orformajorcapitalprojects)thatarelegally restrictedorcommittedtoexpenditureforspecificpurposes.Specialrevenuefundssupporteconomic developmentprograms,designateduserfeebasedcommunityactivities,insurancecosts,retirementcosts, planningfunctions,andotherserviceslegallyrestrictedforspecificpurposes. RevenueSources:Specialrevenuefundsaresupportedeitherthroughpropertytaxesorthrough grantsorotherrestrictedrevenuesources.Anexampleofaspecialrevenuefundsupportedbyproperty taxesincludestheMonticelloCommunityCenter.Anexamplesofaspecialrevenuefundsupportedby grantsorotherrestrictedrevenuesourcesincludetheEconomicDevelopmentAuthorityFund. DebtServiceFunds:Debtservicefundsareusedtoaccountfortheaccumulationofresourcesfor,andthe paymentof,generallong-termdebtprincipalandinterest.Debtservicefundsprovidefinancingfora varietyofthecity'sgeneralobligationimprovementandrevenuebonds. RevenueSources:Debtservicefundsaresupportedwithspecialassessments,accessandutility fundtransfers,propertytaxes,andinterestoninvestments. CapitalProjectFunds:Capitalprojectfundsareusedtoaccountforfinancialresourcestobeusedforthe acquisitionorconstructionofmajorcapitalfacilities(otherthanthosefinancedbyproprietaryfunds). RevenueSources:Capitalprojectfundsaresupportedbylong-termdebtproceeds,special assessments,donations,stateandfederalgrants,operatingtransfersfromotherfunds,andimpact fees. PROPRIETARYFUNDTYPES EnterpriseFunds:Enterprisefundsareusedtoaccountforoperationsthatarefinancedandoperatedina mannersimilartoprivatebusinessenterprises--wheretheintentofthegoverningbodyisthatthecosts (expenses,includingdepreciation)ofprovidinggoodsorservicestothegeneralpubliconacontinuingbasis befinancedorrecoveredprimarilythroughusercharges.Enterprisefundsaccountforthecity'swater, sewage,liquorstore,DMV,andfiberopticsservices. RevenueSources:Enterprisefundsaresupportedthroughusercharges,saleofgoods, penalties,andinterestincome. InternalServiceFunds:Internalservicefundsareusedtoaccountforthefinancingofgoodsor servicesprovidedbyonedepartmenttootherdepartmentsonacost-reimbursementbasis.Internal servicefundswillaccountforthecity'scapitalequipmentinternalleasingprogramandITService. Thesefundswereauthorizedforimplementationin2013. RevenueSources:Internalservicefundsaresupportedthroughchargestootherbudget unitsbasedonleasepaymentsorlevelofprovidedservices. 45 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. A DEPARTMENT isanorganizationalorbudgetarybreakdownwhichisfoundwithincityfunds.Each departmentservesaspecificfunctionasadistinctorganizationalunitofgovernmentwithinthe givenfund.Itsprimarypurposeistofacilitateorganizationalandbudgetaryaccountability. An OBJECTOFEXPENDITURE referstospecific,detailedexpenditureclassification.Itrelatestoaspecific typeofitempurchasedorserviceobtained.Examplesofobjectsofexpenditureincludesalaries,supplies, contractedservice,travel,etc. Thecity’sfinancialoperationsandfundstructureconformwithGenerallyAcceptedAccountingPrinciples (GAAP).Thefundsaregroupedbyfundtype(General,SpecialRevenue,DebtService,CapitalProjects, Enterprise,andInternalService).Allofthecity’sfundsarebudgeted. A CAPITALEXPENDITURE occurswhenacapitalassetispurchased.CAPITALASSETS areusedinoperations andhaveinitialusefullivesextendingbeyondasinglereportingperiod.Theseassetsmustalsomeet capitalizationthresholds,whichvarybyassetclassificationandtypicallycostsmorethan$10,000.Land, improvementstoland,vehicles,machinery,equipment,infrastructureandothertangibleandintangible assetsusedinoperationsareexamplesofcapitalassets.Expendituresthatdonotbenefitmorethanone reportingperiodormeetthecapitalizationthresholdsareclassifieda CURRENTEXPENDITURE. 46 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 ●● StreetLighting ●● RefuseCollection ● WaterUtility ●● SewageUtility ●● TRANSIT Bus ● RECREATIONANDCULTURE SeniorCenter ● ParkOperations ●●●● ParkImprovements ● ParkBallfields ● ShadeTree ● Library ● FiberOptics ●● CommunityCenter ●● OTHERFINANCINGUSES ●●●●●● FUND 47 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 48 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,deferredinflow/outflows,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 departmentheadsexplainthebudgetrecommendationsandunderlyingjustificationfortherequests. Thecouncilalsoreviewsdepartmentalrequestswhichcouldnotbefunded,asanindicationofun-met needs.Duringorfollowingtheworksessions,thecouncilorsmaymakeadjustmentstotheproposed budget.Followinganyadjustmentstothecityadministrator-financedirectorbudgetrecommendation,a tentativeappropriationresolutionispreparedandapublichearingisheld.TheCouncilmayagainmake adjustmentstothebudgetfollowingthepublichearing,afterwhichtime,theCouncilpassesthe appropriationresolutioninfinalform. Appropriationsareestablishedbybudgetunit.Theaccountingsystem,budgetingsystem,andthebudget documentitself,however,breaktheseclassesintosubclasses--therebyprovidingmoredetailed information.Asanexample,operatingsupplies,gasandoil,andsubscriptionsareallclassifiedas operatingexpenses.Theaccountingandbudgetingsystemsprovidedetailforthesespecificsub-classes. However,appropriationcontrolisexercisedonlyatthebudgetunitlevel. 49 BUDGETCALENDAR/PROCEDURES Thefollowingbudgettimelineoutlinestheprocessthecitycustomarilyfollowsforcreationand adoptionoftheannualbudget. Date Activity June16,2015 2016-2020capitalequipment/projects(CIP)worksheetsandbudget worksheetstodepartmentheads. July9,2015 2016-2020CIPandbudgetworksheetsduetofinancedepartment July13,2015 Workshopwithcitycouncilandstafftoset2016goalsandpriorities. July,2015 Departmentheadsmeetwithvariousadvisoryboardsand commissionsforinputinto2016preliminarybudgetandCIP. July,2014 Departmentheadsmeetwithcityadministrator,andfinancestaffto develop2016preliminarybudgetandCIP. July27,2015 Workshopwithcitycouncilworkshoptoreviewdraftdepartment budgetsandset2016goalsandpriorities. MiddleofAugust,2014 Financedepartmentdevelopsrevenueestimatesand2016preliminary propertytaxlevy. August24,2015 Councilworkshoptoreviewvariousdepartments’goals,budgets,and CIPcontinued. September14,2015 Budgetworkshopwithcitycouncilandstaff. September28,2015 Counciladopts2016preliminarypropertytaxlevy. September30,2015 2016preliminarypropertytaxlevycertifiedtoWrightCountyauditor. October/November, 2015 Departmentheadsmeetwithcityadministratorandfinancestaffto develop2016proposedBudgetandfinalpropertytaxlevy. December14,2015 Counciladopts2016budgetandpropertytaxlevy. December28,2015 Citycertifiesfinal2016propertytaxlevytoWrightCountyauditor. January1,2016 2016fiscalyearbegins. 50 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. 51 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. 52 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 53 ALLFUNDSSUMMARYBYFUNDTYPE Special Debt Capital Internal 2016 General Revenue Service Project Enterprise Service Total Fund Funds Funds Funds Funds Funds Budget FundBalance/WorkingCapital-Jan.1 4,459,181$9,029,308$5,288,566$7,253,788$8,286,777$826,545$35,144,165$ RevenuesandOtherSources PropertyTaxes 6,177,000$644,000$2,084,000$300,000$-$-$9,205,000$ TaxIncrements -677,244 ----677,244 Franchise&OtherTaxes 283,900 --80,000 --363,900 SaleofGoods ----5,367,710 -5,367,710 Licenses&Permits 338,900 ---3,700 -342,600 IntergovernmentalRevenues 301,177 --1,047,000 --1,348,177 ChargesforServices 267,664 1,413,110 -50,000 5,241,070 503,581 7,475,425 Fines&Forfeits 42,100 -----42,100 SpecialAssessments 300 -687,505 100,720 30,000 -818,525 Miscellaneous 184,959 193,682 215,900 62,000 185,779 5,263 847,583 ContributedCapital ----140,450 -140,450 OperatingTransfersIn --1,275,134 2,500,000 350,000 -4,125,134 DebtProceeds ---5,000,000 2,000,000 -7,000,000 TotalRevenuesandOtherSources 7,596,000$2,928,036$4,262,539$9,139,720$13,318,709$508,844$37,753,848$ ExpendituresandOtherUses PersonnelServices 2,979,264 1,159,115 --2,097,728 -6,236,107 Supplies 662,900 202,428 --4,385,536 32,200 5,283,064 OtherServices&Charges 3,712,936 878,772 --3,083,464 256,780 7,931,952 CapitalOutlay 240,900 253,237 -10,335,000 2,766,000 461,000 14,056,137 DebtService --5,109,484 -492,198 131,260 5,732,942 OperatingTransfersOut -200,000 -1,500,000 2,425,134 -4,125,134 TotalExpendituresandOtherUses 7,596,000 2,693,552 5,109,484 11,835,000 15,250,060 881,240 43,365,336 NetChangein FundBalance/WorkingCapital -$234,484$(846,945)$(2,695,280)$(1,931,351)$(372,396)$(5,611,488)$ FundBalance/WorkingCapital-Dec.314,459,181$9,263,792$4,441,621$4,558,508$6,355,426$454,149$29,532,677$ AllFUNDSSUMMARY-BYFUNDTYPE Annually,thecityadoptsabalancedbudgetfortheGeneralFundandtheMonticelloCommunityCenter Fund(specialrevenuefund).Abudgetisbalancedwhenrevenuesandothersourcesequalsexpenditures andotheruses.Intheotherfunds,fundbalances/workingcapitalincreaseordecreasewithsurplusesor deficits,respectively. CapitalProjectFundscommonlyaccumulateresourcesinonebudgetperiodandexpendthoseresources overmultiplebudgetperiods. ProjectsanddebtsupportintheWaterFundandSewageFund,enterprisefunds,accountforasignificant portionnegativenetchangeinworkingcapital.PropertyacquisitioninthePark&PathwayDedication Fundandstreetreconstructionaccountsformostoftheremainderofthedecline. Internalservicefundsprovideservicestootherfundsandtypicallyfunctiononacostrecoverybasis.The cityhastwo:ITservicesFundandCentralEquipmentFund.TheCentralEquipmentFundequipment purchaseswillexceedleaserevenuein2016.Bothfundscanbeusedforcapitalassetacquisitons. 54 ALLFUNDSSUMMARY-BYYEAR TOTALALLFUNDS 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 8,157,147$7,961,030$8,386,953$8,535,000$8,535,000$9,205,000$7.9% TaxIncrements 1,052,110 992,339 838,000 726,215 729,577 677,244 -6.7% Franchise&OtherTaxes 347,934 327,667 334,726 316,500 316,500 363,900 15.0% SaleofGoods 4,854,798 5,085,925 5,165,737 4,973,000 5,213,833 5,367,710 7.9% Licenses&Permits 276,168 333,056 381,544 324,880 395,300 342,600 5.5% IntergovernmentalRevenues 576,581 1,283,769 733,566 3,200,677 1,029,240 1,348,177 -57.9% ChargesforServices 6,827,141 7,234,947 7,295,454 7,471,596 7,793,775 7,475,425 0.1% Fines&Forfeits 63,106 41,124 48,744 42,100 41,900 42,100 0.0% SpecialAssessments 2,061,191 2,110,283 1,953,370 1,008,525 2,841,430 818,525 -18.8% Miscellaneous 2,080,617 937,729 1,979,099 943,810 943,192 847,583 -10.2% ContributedCapital --966,494 140,450 1,020,565 140,450 0.0% OperatingTransfers 13,345,907 7,159,545 11,298,117 4,523,906 4,721,507 4,125,134 -8.8% DebtProceeds 1,004,698 3,503,224 683,374 3,322,000 4,000,662 7,000,000 110.7% TOTALREVENUES 40,647,398$36,970,638$40,065,178$35,528,659$37,582,481$37,753,848$6.3% EXPENDITURES PersonnelServices 5,482,262$5,196,072$5,150,066$5,598,177$5,656,229$6,236,107$11.4% Supplies 4,578,983 4,839,108 4,963,314 5,074,771 5,278,371 5,283,064 4.1% OtherServices&Charges 7,667,599 7,240,956 8,196,280 7,576,259 7,528,621 7,931,952 4.7% CapitalOutlay 3,809,786 6,357,692 3,473,466 10,873,886 5,384,086 14,056,137 29.3% DebtService 7,512,964 17,787,008 12,075,241 6,058,109 6,037,097 5,732,942 -5.4% OperatingTransfers 12,906,128 7,072,045 5,514,385 4,523,906 4,721,507 4,125,134 -8.8% TOTALEXPENDITURES 41,957,722$48,492,881$39,372,752$39,705,108$34,605,911$43,365,336$9.2% FUNDBALANCE-JANUARY1 44,307,736$42,997,412$31,475,169$32,167,595$32,167,595$35,144,165$ Excess(Deficiency)of RevenuesoverExpenditures (1,310,324)(11,522,243)692,426 (4,176,449)2,976,570 (5,611,488) FUNDBALANCE-DECEMBER31 42,997,412$31,475,169$32,167,595$27,991,146$35,144,165$29,532,677$ Propertytaxesincreasesignificantlywiththefirst-timeadditionoftheHRAspecialbenefitlevy. Intergovernmentalrevenuesdecreasein2016asthecityreceiveslessstate/federalaidforstreetand sewagetreatmentplantprojects.Licenseandpermitsincreasewithconstructionactivity.Special assessmentsdeclinebecauseof2015prepayments.Operatingtransfersarelowerin2016withthelast transferforcommunitycenterdebtservicepaymentsoccurringin2015.Fundingmultipleprojects,one debtissuanceisplannedfor2016.LiquorFundsaleofgoodsincreasealongwithsalesgrowth. Personalservicesincreasewiththeadditionoftwopositionsandwageincreases.Capitalexpenditures (outlay)risesizablyin2016withadditionofthe$6millioncorestreetreconstructionproject.Sewage Fund(treatmentplantupgrade)andCapitalProjectFund(TH25/CSAH75project,etc.)alsocontributed. Capitalexpendituresreflectdisbursementsforacquisitionorreplacementofassetswithlong-lives (benefittwoormoreaccountingperiods)andusuallyhavesignificantpricetags.Incontrast,current expendituresonlybenefitthecurrentornextaccountingperiodandusuallyhavesmallerpricetags. Capitalexpenditurescanberecurringornon-recurringinnature.Thewastewatertreatmentplant upgradewouldbeanexampleofnon-recurringcapitalexpenditure.Ontheotherhand,thecitybudgets annually$200,000-$500,000toreplaceorrepairstreets.Thiswouldbeanexampleofarecurringcapital expenditure.Recurringcapitalexpendituresusuallyhaveapay-as-you-gofundingsource(enterprise funds)andnon-recurringcapitalexpenditurestypicallyhavedebtasafundingcomponent. 55 CHANGESINFUNDBALANCE/WORKINGCAPITAL ProjectedBeginning ProjectedEnding FundBalance/Estimated FundBalance/ WorkingCapital Revenues Appropriations WorkingCapital GeneralFund 4,406,058$7,596,000$7,596,000$4,406,058$ SpecialRevenueFunds EconomicDevelopment 7,172,475 1,096,710 937,909 7,331,276 Cemetery 27,032 27,000 27,000 27,032 MinnesotaInvestment 1,129,689 25,000 -1,154,689 MonticelloCommunityCenter 440,828 1,779,326 1,779,326 440,828 TotalSpecialRevenueFunds 8,770,024 2,928,036 2,744,235 8,953,825 DebtServiceFunds 2007AG.O.ImprovementBond 463,296 516,082 619,600 359,778 2008BG.O.SewerRefunding 1,376,366 845,000 1,049,254 1,172,112 2010AG.O.ImprovementBond 646,621 327,433 288,350 685,704 2011AG.O.RefundingBond 2,586,730 1,756,024 2,424,450 1,918,304 2014AG.O.JudgmentBonds 6,164 545,000 515,362 35,802 2015BG.O.Street/Improvement 662 273,000 212,468 61,194 TotalDebtServiceFunds 5,079,839 4,262,539 5,109,484 4,232,894 CapitalProjectFunds CapitalProject 1,858,936 8,847,000 9,177,000 1,528,936 ClosedBondFund 383,635 105,720 -489,355 Park&PathwayDedication 848,333 2,000 823,000 27,333 StormwaterAccess 943,721 70,000 -1,013,721 StreetLightingImprovement 762,880 90,000 335,000 517,880 StreetConstruction 1,776,033 25,000 1,500,000 301,033 TotalCapitalProjectFunds 6,573,538 9,139,720 11,835,000 3,878,258 EnterpriseFunds Water 4,311,102 1,331,500 2,790,808 2,851,794 Sewage 2,550,413 4,172,950 4,813,358 1,910,005 Liquor 971,617 5,372,710 5,238,666 1,105,661 DeputyRegistrar 405,086 401,100 371,416 434,770 FiberOptics 152,894 2,040,449 2,035,812 157,531 TotalEnterpriseFunds 8,391,112 13,318,709 15,250,060 6,459,761 InternalServiceFunds ITServices 58,915 299,134 298,980 59,069 CentralEquipment 767,640 209,710 582,260 395,090 TotalInternalServiceFunds 826,555 508,844 881,240 454,159 TotalAllFunds 34,047,126$37,753,848$43,416,019$28,384,955$ FiscalYear2016 CHANGESINFUNDBALANCE/WORKINGCAPITAL ExceptfortheWaterFundandtheSewageFund,thefundbalances/workingcapitalforthecity’smajor operatingfundsareexpectedtoremainstablewithbalancedbudgets(revenuesequalexpenditures). However,drawsonreservesfordebtamortizationinvariousdebtservicefundsandlandpurchasesinthe Park&PathwayDedicationFundwilldecreasefundbalances.AtransferfromtheStreetReconstruction FundtotheCapitalProjectFundforimprovementswillfurtherdepletereserves. 56 FUNDBALANCEHISTORY Amended Adopted Actual Actual Actual Budget Projected Budget 2012 2013 2014 2015 2015 2016 GeneralFund 3,478,507$3,914,563$4,331,058$4,331,058$4,459,181$4,459,181$ SpecialRevenueFunds EconomicDevelopment 7,461,554 7,055,052 6,851,414 7,142,775 7,418,037 7,627,521 Cemetery 19,353 15,709 32,047 27,032 27,524 27,524 MinnesotaInvestment 1,066,058 1,051,218 1,104,689 1,129,689 1,119,689 1,144,689 MonticelloCommunityCenter 179,500 271,204 440,828 440,828 464,058 464,058 TotalSpecialRevenueFunds 8,726,465 8,393,183 8,428,978 8,740,324 9,029,308 9,263,792 DebtServiceFunds 2007AG.O.ImprovementBond 316,936 260,902 548,982 463,296 464,296 360,778 2008AG.O.Revenue (Closed)199,422 (1,403)1,631 5,871 -- 2008BG.O.SewerRefunding 660,704 550,948 880,308 676,366 1,427,366 1,223,112 2010AG.O.ImprovementBond 630,122 619,760 586,511 496,621 645,348 684,431 2011AG.O.RefundingBond(2005A)11,145,710 1,317,306 1,730,084 1,361,072 2,744,730 2,076,304 2014AG.O.JudgmentBonds --169,152 (14,848)6,164 35,802 2015BG.O.Street/Improvement ----662 61,194 TotalDebtServiceFunds 12,952,894 2,747,513 3,916,668 2,988,378 5,288,566 4,441,621 CapitalProjectFunds CapitalProject 795,453 303,583 89,766 (261,064)1,789,766 1,459,766 ClosedBondFund 1,116,150 1,373,823 1,018,764 1,232,764 865,055 970,775 Park&PathwayDedication 442,754 973,433 738,333 (6,667)998,333 177,333 SanitarySewerAccess (Closed)1,866,876 ----- StormwaterAccess 1,468,743 1,122,181 873,721 943,721 1,173,721 1,243,721 WaterAccess (Closed)22,910 ----- StreetLightingImprovement 716,387 792,284 922,880 887,880 650,880 405,880 StreetConstruction 1,907,379 1,666,105 1,751,033 276,033 1,776,033 301,033 CapitalOutlayRevolving (Closed)720,307 ----- TotalCapitalProjectFunds 9,056,959 6,231,409 5,394,497 3,072,667 7,253,788 4,558,508 EnterpriseFunds Water 4,608,692 4,567,498 4,751,413 4,437,102 4,262,302 2,802,994 Sewage 3,189,214 3,767,385 3,142,903 2,446,298 2,446,413 1,806,005 Liquor 649,665 667,538 722,643 645,784 771,617 905,661 DeputyRegistrar 110,764 188,453 347,465 405,086 511,135 540,819 FiberOptics 224,252 77,057 161,966 162,894 295,310 299,947 TotalEnterpriseFunds 8,782,587 9,267,931 9,126,390 8,097,164 8,286,777 6,355,426 8,782,587 9,267,931 InternalServiceFunds ITServices -21,962 58,814 58,915 59,815 59,969 CentralEquipment -898,608 911,190 702,640 766,730 394,180 TotalInternalServiceFunds -920,570 970,004 761,555 826,545 454,149 TotalAllFunds 42,997,412$31,475,169$32,167,595$27,991,146$35,144,165$29,532,677$ FUNDBALANCE/WORKINGCAPITALHISTORY FiscalYearEndedDecember31, 57 BALANCEDBUDGETS A BALANCEDBUDGET canbedefinedasasituationwheretotalrevenuesandotherfinancingsourcesis equalto(orgreaterthan)totalexpendituresandotheruses.Revenuesandotherfinancingsourcesincrease financialresources.Expendituresandotherusesdecreasefinancialresources.Operatingtransfersinand debtissueproceedsareconsideredotherfinancingsources.Operatingtransfersoutareconsideredother financinguses. Abalancedbudgetdoesnotdipintoreservesorfundbalances.However,anunbalancedbudget(deficit)is notnecessarilypoorfinancialmanagement.Forexample,debtservicefundsoftenaccumulateresourcesin theyearpriortoexpenditure.Further,debt-financedcapitalprojectsfrequentlystretchovermultipleyears. Thecityhasneveruseddebttofinancecurrentorongoingexpenditures. Itisthecity’spolicytoadoptbalancedbudgetsfortheGeneralFundandtheCommunityCenterFund. Indeed,bothfundsaresupportedbypropertytaxes.ExceptfortheFiberOpticsFund,ongoingrevenues exceedongoingexpendituresinallthecity’smainoperatingfunds. $(1,600)$(1,400)$(1,200)$(1,000)$(800)$(600)$(400)$(200)$-$200$400 CentralEquipment ITServices FiberOptics DeputyRegistrar Liquor Sewage Water StreetConstruction StreetLightingImprovement StormwaterAccess Park&PathwayDedication ClosedBondFund CapitalProject 2015BG.O.Street/Improvement 2014AG.O.JudgmentBonds 2011AG.O.RefundingBond 2010AG.O.ImprovementBond 2008BG.O.SewerRefunding 2007AG.O.ImprovementBond MonticelloCommunityCenter MinnesotaInvestment Cemetery EconomicDevelopment GeneralFund Thousands ChangeinFundBalances/WorkingCapital 58 CAPITALEXPENDITURES(RecurringvsNonrecurring) A CAPITALEXPENDITURE occurswhenacapitalassetispurchased.Capitalassetsareusedinoperations andhaveinitialusefullivesextendingbeyondasinglereportingperiod.Theseassetsmustalsomeet capitalizationthresholds(seeAppendix),whichvarybyassetclassificationandtypicallycostsmorethan $10,000.Land,improvementstoland,vehicles,machinery,equipment,infrastructureandothertangible andintangibleassetsusedinoperationsareexamplesofcapitalassets. Capitalexpenditures(akacapitaloutlays)canbeclassifiedaseitherrecurringornon-recurring.Fleet equipmentreplacementisanexampleofrecurringcapitalexpendituresbyassetclass.Thecitybudgetsto replaceaportionofthefleeteveryyearonapay-as-you-gobasis.Thecityalsobudgetstoreplaceasmall fractionofitswaterandsewerinfrastructureonanannualbasis.Largeprojectsaddingtoorreplacing infrastructureareusuallynon-recurringinnature.Forexample,the2016corestreetreconstructionproject isnon-recurringinnature.However,therewerefourpriorreconstructionprojectsspreadover15years. Othernonrecurringprojectsincludethewastewatertreatmentplantphosphorousreductionupgradeand theintersectionimprovementsoccurringatthecornersofTH25/CSAH75andTH25/7th Street.Still,the nearlyregularpurchasesofBertramChainofLakeParklandmaylookrecurring,butarenotbecausenearly allthelandnecessaryfortheparkhasbeenacquired.Largenon-recurringprojectsaretypicallyfinancedby debt,intergovernmentalrevenue(state/federalgrantsandaids),anddrawsonreservesaccumulatedin anticipationoftheproject. Recurring- current revenues 9% Nonrecurring- intergovernmental 7% Nonrecurring- newdebt 50% Nonrecurring- priordebt 16% Nonrecurring- internaltransfers 18% RecurringandNonrecurring CapitalExpenditures 59 TAXLEVYHISTORY 2012 2013 2014 2015 2016 GeneralFund 5,451,248$5,540,000$5,497,000$5,882,000$6,177,000$ PercentChange 0.8%1.6%-0.8%7.0%5.0% SpecialRevenueFunds EconomicDevelopment(HRALevy)----280,000 MonticelloCommunityCenter*1,150,000 1,170,000 1,390,000 1,363,000 364,000 TotalSpecialRevenueFunds 1,150,000 1,170,000 1,390,000 1,363,000 644,000 PercentChange 4.5%1.7%18.8%-1.9%-52.8% DebtServiceFunds 2011AGORefundingBonds(2005A)251,906 245,000 223,000 330,000 330,000 2007AGOImprovementBond 416,846 425,000 540,000 420,000 420,000 2008BGOSewerRefunding 500,000 500,000 500,000 500,000 500,000 2010AGOImprovementBond 50,000 20,000 -40,000 40,000 2014AGOJudgementBond ----544,000 2015BGOSR&IBond ----250,000 TotalDebtServiceFunds**1,218,752 1,190,000 1,263,000 1,290,000 2,084,000 PercentChange 6.5%-2.4%6.1%2.1%61.6% CapitalProjectFunds CapitalProjectsFund ----300,000 StreetConstruction 25,000 ---- TotalCapitalProjectFunds 25,000 ---300,000 PercentChange 0.0%-100.0%--------- TotalAllFunds 7,845,000$7,900,000$8,150,000$8,535,000$9,205,000$ PercentChange 2.2%0.7%3.2%4.7%7.9% LevySummary CityGeneralandDebtLevies 7,845,000$7,900,000$8,150,000$8,535,000$8,925,000$ PercentChange 2.2%0.7%3.2%4.7%4.6% HRALevy -$-$-$-$280,000$ PercentChange --------------- *MCClevyfordebt 890,000$890,000$1,040,000$1,040,000$$0 **TotaldebtlevywithMCCdebt 2,108,752$2,080,000$2,303,000$2,330,000$2,084,000$ PercentChange 7.6%-1.4%10.7%1.2%-10.6% TAXLEVYHISTORY 60 TAXCAPACITYHISTORY 2012 2013 2014 2015 2016 TaxCapacity 15,771,688$18,692,762$18,289,491$23,882,689$25,872,567$ PercentChange -4.0%18.5%-2.2%30.6%8.3% CityLevy-TaxCapacityRate 49.773 42.262 44.672 35.732 34.496 PercentChange 6.5%-15.1%5.7%-20.0%-3.5% HRALevy-TaxCapacityRate*----1.082 PercentChange --------------- TAXCAPACITYHISTORY TheHousingRedevelopmentAuthority(HRA)specialbenefitlevyiscappedat.0185%(or.000185)of thecity’staxablemarketvalue.Thecity’staxablemarketvaluefortaxescollectedin2015totaled $1,513,570,400.HRAlevyproceedscanonlybeusedforpurposesincludedintheHRAAct (MinnesotaStatutes,Section469.033,subd.6).Thosepurposesincluderedevelopmenttocorrector preventblight,anddevelopmentoforassistancetohousingforlowormoderateincomepersons. Thecity’staxcapacityincreasedsignificantlywithimprovementsatthenuclearpowerplant.The impactofthoseupratesonthetaxbaseandtaxcollectionsisprovidedintablebelow: 2012 2013 2014 2015 2016 TaxableMarketValue 213,300,800$377,028,900$346,559,800$597,753,900$680,037,200$ Changeoverprioryear$163,728,100$(30,469,100)$251,194,100$82,283,300$ Changeoverprioryear%77%-8%72%14% TaxCapacity*4,266,016$7,540,578$6,931,196$11,955,078$13,600,744$ Changeoverprioryear$3,274,562$(609,382)$5,023,882$1,645,666$ Changeoverprioryear%77%-8%72%14% *Taxcapacityiscalculatedat2%oftaxablemarketvalueforutilitypropertiesandmostcommercialproperties. Residentialpropertiestypicallyhaveataxclassrateof1%. PercentofTotalTaxCapacity 27%40%38%50%53% TaxImpactontheCity CityofMonticello 2,123,324$3,186,799$3,099,226$4,272,386$4,691,849$ Changeoverprioryear$1,063,475$(87,573)$1,085,587$1,592,623$ Changeoverprioryear%50%-3%34%51% MonticelloHRA -$-$-$-$147,160$ NorthernStatesPowerCompany(akaXcelEnergy) 61 REVENUESOURCESBYFUND RevenueClassifications Property Franchise Tax Licenses/Intergovern-Chargesfor Taxes &OtherIncrementsPermits mental Services GeneralFund 6,177,000$283,900$-$338,900$301,177$267,664$ SpecialRevenueFunds EconomicDevelopment 280,000 -677,244 --- Cemetery -----26,000 MinnesotaInvestment ------ MonticelloCommunityCenter 364,000 ----1,387,110 TotalSpecialRevenueFunds 644,000 -677,244 --1,413,110 DebtServiceFunds 2007AG.O.ImprovementBond 420,000 ----- 2008AG.O.SewerRefunding 500,000 ----- 2008AG.O.RevenueRefunding ------ 2010AG.O.ImprovementBond 40,000 ----- 2011AG.O.RefundingBond 330,000 ----- 2014AG.O.JudgmentBond 544,000 ----- 2015BG.O.Street/Improvement 250,000 ----- TotalDebtServiceFunds 2,084,000 ----- CapitalProjectFunds CapitalProject 300,000 ---1,047,000 - ClosedBondFund ------ Park&PathwayDedication ------ StormwaterAccess -----50,000 StreetLightingImprovement -80,000 ---- StreetConstruction ------ TotalCapitalProjectFunds 300,000 80,000 --1,047,000 50,000 EnterpriseFunds Water ---3,700 -1,146,800 Sewage -----2,050,500 Liquor ------ DeputyRegistrar -----400,100 FiberOptics -----1,643,670 TotalEnterpriseFunds ---3,700 -5,241,070 InternalServiceFunds ITServices -----298,981 CentralEquipment -----204,600 TotalInternalServiceFunds -----503,581 TotalAllFunds 9,205,000$363,900$677,244$342,600$1,348,177$7,475,425$ 62 RevenueClassifications Fines&Special Miscell-Saleof Debt ContributedOperating Forfiets Assess aneous Goods Proceeds Capital Transfers Total 42,100$300$184,959$-$-$-$-$7,596,000$ --139,466 ----1,096,710 --1,000 ----27,000 --25,000 ----25,000 --28,216 ----1,779,326 --193,682 ----2,928,036 -96,082 -----516,082 --5,000 ---340,000 845,000 -------- -52,299 ----235,134 327,433 -517,124 208,900 ---700,000 1,756,024 --1,000 ----545,000 -22,000 1,000 ----273,000 -687,505 215,900 ---1,275,134 4,262,539 ----5,000,000 -2,500,000 8,847,000 -100,720 5,000 ----105,720 --2,000 ----2,000 --20,000 ----70,000 --10,000 ----90,000 --25,000 ----25,000 -100,720 62,000 -5,000,000 -2,500,000 9,139,720 -30,000 71,000 --80,000 -1,331,500 --62,000 -2,000,000 60,450 -4,172,950 --5,000 5,367,710 ---5,372,710 --1,000 ----401,100 --46,779 ---350,000 2,040,449 -30,000 185,779 5,367,710 2,000,000 140,450 350,000 13,318,709 --153 ----299,134 --5,110 ----209,710 --5,263 ----508,844 42,100$818,525$847,583$5,367,710$7,000,000$140,450$4,125,134$37,753,848$ 63 LONGRANGEFINANCIALPLANS GeneralFund CommunityCenter EDA CapitalProjects Routine Expenditures Expectedtoriseatthepaceof inflationbutmitigatedbygains inproductivity.Somecapital expendituresareincorporated asroutinethroughrental chargesbyinternalservice funds. Expectedtoriseatthepaceof inflation.Routinecapital expendituresaresetat $50,000peryear. Non-TIFexpendituresare expectedtoriseatthepaceof inflation. Thecityannuallyappropriates forreplacementofroad surfacesandstreetlights. Franchisefeesprovidefunding forstreetlightimprovements. Roadsurfaceimprovementsare fundedbyreserves,stateaid andtranfersfromtheLiquor Fund. Non-routine Expenditures Basiclevelofnon-routine itemsareincludedinoverall budgetbutvarywithineach budgetunitfromyear-to-year. Largerepairandmaintence itemsandtotalcapital expendituresexceeding $50,000willbesupportedby transfersfromotherfunds. 2016:$50,000poolresurface. Taxincrementfinancing(TIF) expenditureswillvary considerableyfromyear-to- yearineachdistrictas developmentoccurs. Largecapitalprojectsusually receivefundingfromdebt issuance.Thecityusually coversinitialprojectcostswith reservesorotherrevenue sourcesandreimbursesitself withdebtproceeds.2016: Fallonoverpass-$1.2M,Area5 streetreconstruction-$5M, 95thStextension-$1.35M, TH25/CSAH75intersection $1.35M,2017:Fallonoverpass- $4.3M,Area6streets-$900K. 2018:Area7streets-$1M. Revenues Propertytaxesprovideover 80%oftherevenuefor GeneralFund.Consequently, spendingisconstrainedby growthinthetaxlevy.Thecity hasresisteddevelopingother revenuesourcessuchasfees forresidentialrefusecollection orstormwater. Withthelastpaymenton communitycenterdebtservice comingin2015,theproperty taxlevyforthisdebtdeclined by$1Min2016.Userfees shouldcover85%on-going expenditures. Taxincrementrevenueswidely varyfromdistricttodistrict butnotmuchfromyear-to- year.Oftenreserves, accumulationofprioryear increments,areusedtofund projects.Transfersfromthe GeneralFundwereeliminated in2016withtheinitiationof anHRAlevyof$280,000. In2016,theFallonOverpass andTH25/CSAH75 expenditureswillbesupported bystateaid.Thecityplansto reimburseitselfwithtax abatementorstreet reconstructionbondsin2016 and/or2017.Thecitywill providetemporaryfinancing fromitsStreetReconstruction Fund. Debt None:Indirectlysupports CentralEquipmentFunddebt servicethroughannualrental payments. Nodebtissuesareanticipated overnextfiveyears.Further, debtforrecreationalprojects eitherrequiresvoterapproval ormustbeincurredaspartof alease-purchaseagreement withtheEDA. IntrafundloansfromtheEDA GeneralFundsub-fundwill financesomeTIFactivities.No externaldebtissuanceis planned. 2016:$5Mreconstruction /improvement/abatement bonds.2017:$5millionintax abatement/reconstruction bonds.Thedebtservicefor thesebondswillbestructured totakeadvantageofthe declineinothertaxsupported debt. 64 Water Sewage Liquor FiberOptics CentralEquipment Expectedtoriseatthepace ofinflationbutmitigatedby reinvestmentinplantand equipment.Annualcapital expendituresfinancedona pay-as-you-gobasisrange between$150,000to $300,000. Expectedtoriseatthepace ofinflationbutmitigatedby reinvestmentinplantand equipment.Annualcapital outlaysfinancedonapay- as-you-gobasisrange between$150,000to $300,000.2018: PhosphorusreductionO&M willincreaseannual operatingcostsby$73,000. Expectedtoriseatthepace ofinflationandincreasesin demand.Costofsalesare typicallypassedonto customersthroughhigher prices.TheLiquorStore maintainsaconsistentgross profitmarginof25%-27%. Expectedtoriseatapace greaterthaninflation. Operatingrevenuesarenot sufficienttocover expendituresfor operations,rountineand non-routineitems.Citymay hireamanagementfirmto runday-to-dayoperations. Capitalequipment purchaseswillvarywidely everyyear.Adebtservice scheduleiscontainedinthe InternalServicesectionof thisreport.Allexpenditures inthisfundareeitherfor capitalequipment purchasesordebtservice. 2016:$1MArea5street reconst.2017:$130,000 boosterstationupgrades. Becausewateraccess (impact)feeshavedeclined withdevelopment,transfers todebtservicefunds,with waterimprovement components,willcontinue forseveralyears. 2016:$1.2million phosphorusreduction, $800kfordigestercover replacement.Because seweraccessfeeshave declinedwithdevelopment, transferstodebtservice funds,withsewer improvementcomponents, willcontinueforseveral years.2018:$1.4million solidwastehandling upgrades.2016:$5MPhase 2plantupgrades. TheLiquorFundhas $25,000and$75,000 budgetedforcooler replacementandparkinglot improvementsin2016. Annualoperationsprovides sufficientfundsforboth. Operatingrevenuesarenot adequatetosupportnon- routineexpenditures. Consequently,LiquorFund transferswillprovide fundingforfundoperations. Anticipatedfuture expenditurebyyear: 2016:$582,000; 2017:$670,000; 2018:$535,000; 2019:$334,000; 2020:$645,000. Userratesarehighenough tocoverplanned expendituresforthenext fiveyears.However,the basechargeforwaterand sewageserviceswill increaseinadvanceofgoing tomonthlybilling. Userratesareexpectedto risetoprovideforpay-as- you-goroutinesystem replacementanddebt financeupgradestomeet newenvironmental regulations.Aphasedten percentrateincreaseis neededforthephophorus reductionwastewater treatmentplantproject. Saleshaveincreasedsteadly forthelastfiveyears.Going forward,salesareexpected toleveloutbecauseof spacelimitations. 2016:$350,000transfer fromtheLiquorFund. TransfersfromLiquorFund coulddeclinewithfurther operationalchanges. Rentalrevenues (expendituresinother fundsandbudgetunits)will risewithequipment purchases.Therefore, revenuesourcesinother fundsbecometherevenue sourceforthisinternal servicefund. Nodebtissuesare anticipatedovernextfive years. TheMinnesotaPublic FacilitiesAuthoritywill providelowinterest financingforthe phosphorusreduction projectanddigestercover replacement.ThePFAwill likelyprovidefundingfor the2018projects. Nodebtissuesare anticipatedovernextfive years. In2014,aresolutionwas reachedwithtelcombond holders,thecityissued$6 millioninsettlementbonds in2014.Thecitylevies propertytaxesfordebt serviceonthesebonds. Debtserviceisnotrecorded inthisfund. Thefundisexpectedto becomeself-sustaining.The cityissued$515,000in bondstofinancefuture purchaseofaplowtruck andthe2014purchaseofa firetender.Futuredebt issuesmaybenecessaryto makealltheacquistions listedintheCIP. 65 LONGRANGEFINANCIALPLANS (continued) Priortothestartofthebudgetprocess,councilandstaffreviewserviceneeds,growthtrendsand capitalinvestmentrequirements.Along-rangefinancialmodelisdevelopedforthecity’sfourmain operatingfunds:General,MonticelloCommunityCenter,Water,andSewage.Thisisdonein conjunctionwiththeCapitalImprovementPlan(CIP)whichisafive-yearforecastthatincludes fundingsources.Financialplanningissegregatedintotwocomponents;operationsforthefour mainoperatingfundsandcapitalinvestments(CIP). TheMunicipalLiquorFund,DeputyRegistrarFundandFiberOpticFundareexcludedfromlong rangefinancialplan.TheliquorstoreandDMVarelargelyretailoperationswithnomajor forecastedcapitalinvestmentneeds.TheFiberOpticFundpresentsinterestingchallengesina dynamicandcompetitivemarketwherestrategiesandabusinessplanneedrefinement. Itemsimpactinglongrangefinancialplanning: Currentfinancialposition(fundbalances) Debtburden Regulatoryenvironment Conditionofexistingcapitalassets Growthtrends,inflationandaspirations ThecityannuallyadoptsabalancedbudgetfortheGeneralFund.Consequently,therevenues/sourceslineand theexpenditures/useslinewilloverlapforthe2016budgetandforfutureyearprojections.After2016,Annual expendituresareprojectedtoincreaseat2%peryear.Thepropertytaxlevyandallotherrevenuesare projectedtoincreaseatthesamerateofexpenditures/uses.In2012,theGeneralFundtransferredover$2 milliontootherfundstoeliminateinterfundreceivables.Accordingtopolicy,thecityshallmaintainafund balanceof45%ofexpendituresandrecurringuses.Thefollowingchartassumesthecitywillcontinueto providethesamecurrentlevelsofservice: $- $2 $4 $6 $8 $10 2012201320142015201620172018201920202021 Millions GeneralFund2012-2021 FundBalance Revenues/Sources Expenditures/Uses 66 LiketheGeneralFund,theMonticelloCommunityCenterFundannuallyadoptsabalancedbudget. Consequently,therevenues/sourceslineandtheexpenditures/useslinewilloverlapforthe2016budgetand forfutureyearprojections.After2016,Annualexpendituresareprojectedtoincreaseat2%peryear.In2012, thefundbalancedeclinedtoreflectcapitaloutlayexpendituresontheNatatoriumprojects.Transfersintothe fundalsosupportedtheproject.Thelastpayment($1,001,000)onpropertytaxsupporteddebtservice,related totheinitialconstructionofthecommunitycenter,occurredin2015. $- $1 $2 $3 $4 $5 2012201320142015201620172018201920202021 Millions MonticelloCommunityCenter2012-2021 FundBalance Revenues/Sources Expenditures/Uses TheWaterFundisthecity’smostself-sustainedutilityfund.Thefundhasnodirectdebtand adequatereservestocoveralmostanyexpenditureformajorcapitalprojects,ofwhichnoneare plannedinthenextcoupleyears.In2019,transferstootherdebtservicefundsforwaterrelated improvementscease.Thesetransferssupplementwateraccessfeeswhichallbutdriedupasa resultofslowercommercialandresidentialdevelopment.Theincreasein2013expenditures includeswaterimprovementsalong7th Streetandtheaforementionedtransfers.Thepeakin2016 iscausedbythetransferof$1milliontotheCapitalProjectsFundforwatermainimprovement relatedtotheArea5streetreconstructionproject. $- $1 $2 $3 $4 2012201320142015201620172018201920202021 Millions WaterFund2012-2021 WorkingCapital Revenues/Sources Expenditures/Uses 67 UnliketheWaterFund,theSewageFundrepresentsfundingchallenges.First,sanitarysewer accessfeeshavedeclinedsignificantlywiththelackofdevelopment.Transferstootherdebtservice fundssupplementingtheseaccessfeesareexpectedtodropsignificantlyin2017andtocease altogetherin2018.Second,environmentalregulatorychangesrequirelargeinvestmentsinthe wastewatertreatmentplant.In2013,thefundincurred$3millionindebttoimprovetreatment plantcapacity.Additionally,thecityestimatesitwillincurnearly$2.5millionindebtforthe wastewatertreatmentplantphosphorousreductionprojectandforreplacementoftwodigester covers.Theincreasein2013expendituresalsoincludestheaforementionedtransfers. $- $1 $2 $3 $4 $5 $6 $7 2012201320142015201620172018201920202021 M illions SewageFund2012-2021 WorkingCapital Revenues/Sources Expenditures/Uses 68 LONG-TERMFISCALOBJECTIVES Thecitycouncilandstaffarecommittedtoexpendingpublicresourcesinthemostcost-effectiveand economicalmannerpossibletoinsurethestabilityofthecitypropertytaxlevy.Inlightofchangesto taxpolicy,stateaidreductionsforvariouspurposes,stateimposedlevylimitsinprioryears,andthe potentialoffuturelevylimits,fiscalstrategieswillneedtobeconstantlymonitoredtoensurea balancedapproachinprovidingsufficientrevenuestofundservices: 1.Employastrategyaimedatreducingthecity’srelianceonthepropertytaxlevytofundbasic servicesthrough“sustainable”revenuesourcessuchasfranchisefees,specialrevenues,userfees, andchargesforservices. Thecity’spropertytaxlevygeneratesover80%oftheGeneralFund’srevenue.Thisover dependenceislargelyattributabletoahealthytaxbase,whichincludesanuclearpowerplant.In prioryears,thecity’staxlevyhadnotkeptpacewithinflation.Thecurrentcouncilphilosophyseems toindicateawillingnesstotakeadvantageofthegrowthinthetaxbase.Whileagrowthplus inflationtaxlevyformulawouldnotreducethedependenceonpropertytaxes,itwouldalleviatethe strainplacedoncityfinancesbyinflation.Cityserviceswillcontinuetobeevaluatedintermsof identifyingallrelevantfundingsourcestounderwritespecificserviceexpenditures,promoting alternativestotraditionalfundingmethodologiesandencouragingpublic-privatepartnershipsin servicedeliverysystems. 2.Thedevelopmentanduseofappropriatecostaccountingstructurethatwillleadtocreationof individualcostcentersforallcitydepartmentactivitiestoaccuratelyreflectthetruecostof providingspecificservices. Thecityemployeesacostaccountingsystemthatisdepartmentspecificthatattemptsto accuratelyreflectservicedeliverycostsatthedepartmentanddivisionlevels.Byincludingall supplementalservicesastheyrelatetopersonnel,chargesandservices,supplies,andcapitaloutlays willfurtherdistinguishthetotalcostofserviceprovided.Thecityhastheabilitytoanalyzethese costsatthesub-categorydetaillevelsinsupportofoverallpolicygoals. 3.Theadoptionofafinancialphilosophythatseekstospreadthecostofsignificantcapitaloutlay expendituresoveranextendedperiodoftimetoensurethatcurrentandfuturetaxpayersshare equallyinunderwritingthosecosts. Thecitycontinuestocapitalizethecostofsignificantcapitalexpendituresoverseveralyears toensurethatbothexistingandfuturetaxpayersshareequallyinthecost.Inaddition,thecityhas dedicatedaportionofthelevytounderwritethecostofselectedcapitalprojectsandequipment, avoidingafiscalenvironmentbasedonreactivetaxandspendpolicies.Thefiveyearcapital improvementplanningprocessiscriticalinachievingtheseresults. 69 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. 70 Citystaffisencouragedtoidentifyworkpracticeissuesthatareinefficientoroverly bureaucratic.Themanagementteamiscommittedtoinvolvingtheiremployeesandfosteringan environmentthatchallengesthestatusquoofcityoperations. 9.Continuouslyreviewingopportunitiestoformpartnershipswithneighboringcommunitiesto shareservicesandequipment,jointlypurchaseequipmentanddevelopstrategiestodealwith localissuesusingaregionalapproach. Thecityhasestablishedseveralequipmentandservicedeliverysharingarrangementswith neighboringcommunitiesandhasseveraljointpowersagreementsinplaceonavarietyoflocaland regionalissuesintheareaofpublicsafetyandpublicworksinitiatives. 71 CAPITALINVESTMENTSANDOPERATINGBUDGETS Capitalinvestments(outlays)toreplaceorimproveexistingassetscanhavesignificantimpactsonoperating budgets.Forexample,capitalinvestmentsreplacingagingequipmentcanreduceannualrepairsand maintenanceexpendituresandpersonnelservicescosts.Indeed,equipmentnearingtheendofitsusefullife oftenrequiresexpensiverepairswithhardtofindreplacementparts.Further,personalservicecostsare impactedintwoways:thecostofthepeoplerepairingtheequipmentandthelossofproductivity.In2013,the cityinitiatedtheCentralEquipmentFundforthepurposeofcreatingarevolvingfundforfutureequipment purchases.Thisfundpurchasesequipmentandleasesitbacktothebenefitingbudgetunits.Theleasepayments assurethatequipmentpurchaseswillreceiveannualfunding,gettingthesamepriorityasotheroperating expenditures.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$180,000.Additionally,thecityannuallybudgetsover$200,000fora moredurablemillandoverlayintheStreetConstructionFund.Theseoperatingandcapitalexpenditureswork intandemtoforestallenormouslymoreexpensivestreetreconstructionprojects. 72 CAPITALINVESTMENTSANDOPERATINGBUDGETS Department-OperatingFund Fund Amount Year Amount Comment PublicWorks-GeneralFund Snowplowskidsteere CentralEquip.12,000$2016 2,000$CEleaseandR&M(+/-) Pickup(replacement)CentralEquip.30,000$2016 4,000$CEleaseandR&M(+/-) Blacktopplaner CentralEquip.22,000$2016 3,700$CEleaseandR&M(+/-) Blacktoprouter CentralEquip.22,000$2016 3,700$CEleaseandR&M(+/-) Electronicsignreader CentralEquip.10,000$2016 2,000$CEleaseandR&M(+/-) FallonAvenueoverpass CapitalProject 6,000,000$2017 5,250$R&M TH25/CSAH75improvements CapitalProject 1,497,000$2016 4,275$R&M TH25/7thStreetintersection CapitalProject 1,500,000$2016 5,275$R&M,electricity Extension95thStreet CapitalProject 1,500,000$2017 5,000$R&M Overlayruraloutlyingstreets CapitalProject 500,000$2017 3,150$R&M StreetreconstructioninArea5 CapitalProject 5,400,000$2016 (15,000)$R&M Streetlightimprovements StreetLightImp 75,000$2016 1,200$ElectricityandR&M Flashingyellowarrowtrafficsignals CapitalProject 200,000$2016 1,000$R&M RecreationCulture-GeneralFund BertramLakeslandacquisition Park&Pathway 563,000$2016 -$Untildeveloped BertramLakesimprovements Park&Pathway 200,000$2017 10,000$R&M MeadowOakdogpark Park&Pathway 15,000$2016 1,000$R&M SpiritHillspathway Park&Pathway 45,000$2016 1,500$R&M Pathwaylighting StreetLightImp 60,000$2016 1,000$ElectricityandR&M LandPrideoverseeder CentralEquip.12,000$2015 6,050$CEleaseandR&M(+/-) Cushmantruckster CentralEquip.25,000$2016 4,700$CEleaseandR&M(+/-) Pickup1ton CentralEquip.65,000$2016 12,300$CEleaseandR&M(+/-) Recreation-CommunityCenter Moveablewalls CommunityCtr.25,000$2016 -$Noimpactonexpenses DiamondBritepoolresurface CommunityCtr.50,000$2016 -$Noimpactonexpenses Vanityandpartitionreplacement CommunityCtr.10,000$2016 -$Noimpactonexpenses Mechanicalimprovements CommunityCtr.14,000$2016 1,000$ElectricityandR&M PublicWorks-SewageFund WWTPphosphorousreductionprojectSewage 1,200,000$2017 75,000$Chemicals Digestercoverreplacement Sewage 800,000$2016 (15,000)$R&M PickupTruck1/2 Sewage 30,000$2016 1,850$Gas,R&Mandinsurance PublicWorks-WaterFund Meterupgrades Water 65,000$2016 (5,600)$Reducemanualreading PickupTruck1/2 Water 30,000$2016 1,850$Gas,R&M,insurance 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. 73 LEGALDEBTLIMITANDBONDRATING 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.bondstoreimburseitselffor expendituresonstreetreconstructionandotherimprovementsinlate2016.The2016reimbursement amountiscurrentlyestimatedat$5,000,000.Further,thecityanticipatesadebtissueforasimilaramountin 2017asworkontheFallonAvenueoverpassprogresses. BondRatings:Thecity’sgeneralobligationbondratingwasupdatedinOctober2015withthesaleofthe streetreconstructionandimprovementbonds.Moody’saffirmedthecity’spriorG.O.debtratingof“A2”.The “A2”ratingisan“uppermediumgrade”.Thisisgenerallydescribedas“strong,investmentgrade”creditby Moody’s. Marketvalue(payable2016)1,594,756,100$ Debtlimit(3%ofmarketvalue)47,842,683$ Debtapplicabletolimit Othergeneralobligationbonds 13,422,653 Lessgeneralobligationbonds notsubjecttothelimit (2,930,347)$ Totalnetdebtapplicabletolimit 10,492,306$ Legaldebtmargin 37,350,377$ LegalDebtMarginCalculationforFiscalYear2016 74 BONDRATINGSCALES Monticello’sMoody’srating:G.O.Debt–A2 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 75 DEBTSERVICELEVYHISTORY Mostofthecity’sdebtissuesaresupportedonsomelevelbypropertytaxes.Additionally,asliver ofthe2008Sewerbondsandthe2013BWastewaterTreatmentBondsaresupporteddirectlyby SewageFundrevenues.Thecommunitycenter’sspecialrevenuefundwasaconduitfortaxes leviedtosupportthe2008MCC(MonticelloCommunityCenter)bonds.Thecityissued$6,595,000 ingeneralobligationbondsin2014.Thisdualpurposeissuehadtwoportions:judgment- $6,080,000andcapitalequipment-$515,000.Thecapitalequipmentdebtiscarriedinaninternal servicefund;leasepaymentsfromtheGeneralFundwillprovidemoneyforthedebtservice.In 2015,thecityissued$2,605,000instreetreconstructionandimprovementbonds.The2016tax levyincludes$300,000fordebtserviceonfuturedebt. Year2010AImp.2011AImp2007AImp.2008Sewer2008AMCC2014AJ&E2015BSR&I Total 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 40,000 330,000 420,000 500,000 -544,000 250,000 2,084,000 2017 25,000 206,000 420,000 500,000 -537,000 195,000 1,883,000 2018 25,000 215,000 420,000 500,000 -538,000 203,000 1,901,000 2019 25,000 185,000 ---537,000 201,000 948,000 2020 25,000 185,000 ---536,000 198,000 944,000 2021 25,000 183,000 ---538,000 201,000 947,000 2022 25,000 187,000 ---538,000 198,000 948,000 2023 -185,000 ---538,000 199,000 922,000 2024 -----536,000 200,000 736,000 2025 -----539,000 201,000 740,000 2026 -----540,000 194,000 734,000 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 201220132014201520162017201820192020202120222023202420252026 DebtServiceLevy(2012-2026) 2010AImp.2011AImp 2007AImp.2008Sewer 2008AMCC 2014AJ&E 2015BSR&I 76 G.O.DEBTSERVICE Currentgeneralobligation(G.O)debtwillseerapidamortizationoverthenextthreeyears(2016- 18),withthebiggestdeclineoccurringin2018withthefinalpaymentontwobondissues.In 2014,thecityissued$6,595,000ingeneralobligationbonds.Thisdualpurposeissuehadtwo portions:judgment-$6,080,000andcapitalequipment-$515,000.In2015,thecityissued $2,605,000ingeneralobligationbonds:streetreconstruction($1,885,000)andimprovements ($720,000).TheMinnesotaPublicFacilitiesAuthority$2.3millionloanisexcludedfromthe scheduleandgraphbelow.DrawsonthePFAloanwilloccurasconstructionatthewastewater treatmentplantprogresses.ThePFAdebtisrecordedintheSewageFund,anenterprisefund. Year2010AImp.2011AImp.2007AImp.2008Sewer2008AMCC2013COI2013WWT2014AJ&E2015BSR&ITotal 2012459,978$3,053,238$733,200$1,048,427$1,100,880$-$-$-$-$6,395,723$ 2013447,725 3,011,413 734,900 1,049,782 1,074,120 58,788 ---6,376,728 2014360,150 2,880,150 735,600 1,049,841 1,037,360 66,120 254,198 --6,383,419 2015302,399 2,460,250 730,400 1,049,193 1,000,760 65,760 250,598 174,406 -6,033,766 2016304,050 2,423,950 729,300 1,048,854 -65,250 246,998 580,872 211,969 5,611,243 2017304,618 783,650 663,500 1,049,078 -69,590 243,398 576,821 207,500 3,898,155 2018299,324 779,350 663,000 1,049,163 -68,713 244,798 576,759 215,250 3,896,357 2019298,355 428,350 ---67,673 241,098 575,608 212,850 1,823,934 2020301,653 430,650 ---71,470 242,398 572,931 210,450 1,829,552 2021304,050 425,825 ----243,598 578,691 213,050 1,765,214 2022 -428,750 ----244,406 577,816 209,750 1,460,722 2023 -426,300 ----244,706 575,578 211,450 1,458,034 2024 ------244,376 572,384 212,200 1,028,960 2025 ------243,600 513,201 212,825 969,626 2026 ------247,150 514,761 213,325 975,236 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 201220132014201520162017201820192020202120222023202420252026 G.O.DebtServicePaid/Due(2012-2026) 2010AImp.2011AImp.2007AImp.2008Sewer 2008AMCC 2013COI 2013WWT 2014AJ&E 2015BSR&I 77 G.O.DEBTLEVELS Currentgeneralobligation(G.O)debtlevelsarepoisedtodeclinedrapidlyoverthenextfour years,largelytheresultoftheamortizationof2011A(2005Aredeemed)refundingimprovement bondissue.Therapidamortizationofdebtreflectsanopportunityforfinancingnewprojects includedinthecapitalimprovementprogram(CIP).Theschedulebelowreflectstherefinancing of2005Aimprovementbondswith2011Abonds—thetwoarecombinedontheschedulelessthe redemptionbondpayment.TheMinnesotaPublicFacilitiesAuthority$2.3millionloanisexcluded fromthebelowscheduleandgraph. Year2010AImp.2011AImp.2007AImp.2008Sewer2008AMCC2013COI2013WWT2014AJ&E2015BSR&IOutstanding 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 2,605,000 24,508,000 20161,420,000 3,425,000 1,275,000 2,012,000 -265,000 2,460,000 6,190,000 2,460,000 19,507,000 20171,145,000 2,715,000 650,000 1,023,000 -200,000 2,280,000 5,785,000 2,310,000 16,108,000 2018870,000 1,995,000 ---135,000 2,095,000 5,375,000 2,150,000 12,620,000 2019590,000 1,615,000 ---70,000 1,910,000 4,960,000 1,990,000 11,135,000 2020300,000 1,225,000 ----1,720,000 4,540,000 1,830,000 9,615,000 2021 -830,000 ----1,525,000 4,105,000 1,665,000 8,125,000 2022 -420,000 ----1,325,000 3,660,000 1,500,000 6,905,000 2023 ------1,120,000 3,205,000 1,330,000 5,655,000 2024 ------910,000 2,740,000 1,155,000 4,805,000 2025 ------695,000 2,320,000 975,000 3,990,000 2026 ------470,000 1,885,000 790,000 3,145,000 $- $5 $10 $15 $20 $25 $30 201220132014201520162017201820192020202120222023202420252026 M i l l i o n s G.O.DebtOutstanding(2012-2026) 2010AImp.2011AImp.2007AImp.2008Sewer 2008AMCC 2013COI 2014AJ&E 2015BSR&I 78 EFFECTOFDEBTLEVELSONGOVERNMENTOPERATIONS Debtiscarriedinthreefundtypes:GovernmentalFunds,EnterpriseFundsandInternalServiceFunds. Consequently,debthasadifferentimpactontheoperationsofeachfundtype.Indeed,debtserviceisa fixedcostthatdoesnotvarywithactivitylevels.Debtamortizationandredemptionreducefixedcosts, freeingresourcesforotherpurposes. GovernmentalFunds Governmentalfunddebtserviceisprovidedthroughdebtservicefunds,whichaccumulatemoneyfrom varioussourcesforprincipalandinterestpayments.Thosesourcesincludepropertytaxes,special assessments,transfersfromenterprisefunds,andtransfersfromcapitalprojectfundscollectingimpact fees.Thedebteffectonservicesdeliveredthroughgovernmentalfundswithcurrentplantand equipmentissomewhatdiminishedbecausethecityisnotconstrainedbystate-imposedlevylimitsfor propertytaxes.Whenlevylimitshavebeeninplace,statuteshaveallowedforspecialleviesfordebt service.Whiletherearelimitstowhattaxpayerscanbear,Monticellohasthelowesttaxcapacityratein WrightCountybecauseofitslargecommercialtaxbase—includingthenuclearpowerplant.Indeed,the powerplantabsorbsoverhalfofanytaxincrease.TheGeneralFundisprimarilysupported(over80%) bypropertytaxesandtheMonticelloCommunityCenter(MCC)Fundisprimarilysupportedbycharges forservices.TheGeneralFundhasotherunderutilizedrevenuesourcesandtheMCCFundcanadjustits feescheduleandreducecosts.Still,onenegativeconsequenceofusingimpactfeesfordebtservicesis thecity’sreducedabilitytofinancewaterandsewertrunkimprovementswithmoneyonhand.High debtlevelslowerthecity’sability(debtlimitanddebtrating)toissuenewdebtforcapitalassets,which mayimproveefficiencyormeetagrowingneed. EnterpriseFunds TheSewageFundistheonlyenterprisefundwithdebt.Allutilityratesarereviewedannuallyand adjustedtocoveroperating,capitalanddebtserviceexpenditures.Transferssupportprincipaland interestpaymentsindebtservicefundswherewaterandsewerimpactfeeshavebeendeficient.This drainonresourcesmeansnewdebtwillneedtobeissuedforSewageFundwastewatertreatmentplant upgradesandtrunkimprovements.AccordingtoanAE2Ssurvey,Monticellohassomeofthelowest waterandsewageratesintheMinnesota.However,thecouncilisawarethatthecityneedstomaintain itscompetitivepositionwithtaxesandutilitychargestoattracteconomicdevelopment. InternalServiceFunds TwodebtissueshaveprovidedcapitalforcreatingaCentralEquipmentinternalservicefund.Thisfund financesgovernmentalfundequipmentpurchasesover$10,000.Theequipmentisthenleasedbackto thebenefittingbudgetunitforafixedduration.Theleasepaymentsprovideforadditionalfuture equipmentpurchases.Currently,theGeneralFundistheonlygovernmentalfundinternallyleasing equipment.Thedebtservesasmechanismformaintainingthefundanditsequipmentpurchases.With over80%oftheGeneralFundrevenuecomprisedofpropertytaxes,theCentralEquipmentFunddebt andtherelatedleasepaymentshaveadirecteffectontheamountofresourcesavailableforotheruses. Again,thisismitigatedbycity’slowtaxcapacityrateandthelackofalevylimit. Insummary,debtisavalidwaytomatchcustomerswiththecostofprovidingaservice.Currentservice customerspayforcurrentservicedeliverywithannualdebtservicepaymentssupportedbyuserfees andtaxes.Futureservicecustomersmakefuturedebtservicepaymentsthroughfuturetaxesanduser fees. 79 DEBTLEVELSBYFUNDTYPE Thefollowingscheduleandchartseparatedebtbyfundtype.Governmentalfundstypicallyhave varyingsourcesofrevenue:propertytaxes,specialassessments,impactfees,etc.Enterprisefund debtisusuallysupportedbychargesforservices.Internalservicefundsaresupportedbycharges forservicestobudgetunitswithinotherfunds,whichhavetheirownrevenuesources(taxes, licensesandpermits,chargesforservices,etc.). YearGovernmental Enterprise InternalService Total 2012 27,776,000$575,000$-$28,351,000$ 2013 22,026,000 3,490,000 900,000 26,416,000 2014 23,262,000 3,220,000 785,000 27,267,000 2015 20,893,000 2,945,000 670,000 24,508,000 2016 16,287,000 2,665,000 555,000 19,507,000 2017 13,288,000 2,385,000 435,000 16,108,000 2018 10,210,000 2,095,000 315,000 12,620,000 2019 9,035,000 1,910,000 190,000 11,135,000 2020 7,835,000 1,720,000 60,000 9,615,000 2021 6,600,000 1,525,000 -8,125,000 2022 5,580,000 1,325,000 -6,905,000 2023 4,535,000 1,120,000 -5,655,000 2024 3,895,000 910,000 -4,805,000 2025 3,295,000 695,000 -3,990,000 2026 2,675,000 470,000 -3,145,000 $- $5 $10 $15 $20 $25 $30 201220132014201520162017201820192020202120222023202420252026 M illion s DebtLevelsbyFundType Governmental Enterprise InternalService 80 INTERFUNDTRANSFERS INTERFUNDTRANSFERS Operatingtransferssupporttheoperationsofotherfunds,provideforspecialprojects,and contributetodebtservicepayments.Thefollowingscheduleprovidestheoperatingtransfersinthe 2016Budget. FundNo.TransferInFund Amount FundNo.TransferOutFund Amount 3122011AGOImprovementBond 700,000 213EconomicDevelopment 200,000 601Water 500,000 3152008AGOSewerRevenueBond 340,000 602Sewage 340,000 3172010AGOImprovementBond 235,134 602Sewage 85,134 601Water 150,000 400CapitalProjectsFund 2,500,000 406StreetReconstruction 1,500,000 601WaterFund 1,000,000 655FiberOptics 350,000 609Liquor 350,000 TotalTransfersIn 4,125,134$TotalTransfersOut 4,125,134$ SCHEDULEOFOPERATINGTRANSFERS Debt Service 31% Enterprise 8% Capital Projects 61% 2016TransfersIn Fund-Type Enterprise 59% Special Revenue 5% Capital Projects 36% 2016TransfersOut Fund-Type 81 STAFFINGSUMMARY STAFFINGHISTORY Staffing,asmeasuredbyfull-timeequivalents,hasbeenrelativelystableforthelastfiveyears.Many employeesperformacrossmultipleactivities/divisionsandfunds.Thetablebelowdoesnotreflect thepart-timecommunitycenteremployees.Therearefournewfull-timepositionsbudgetedfor 2016.Twoofthosewereconversionsofpart-timetofull-time. Amended Adopted Actual Actual Actual BudgetProjectedBudget 2012 2013 2014 2015 2015 2016 GeneralFund CityAdministration 1.85 1.85 1.85 2.18 2.18 2.40 Finance 4.00 4.00 4.00 3.80 3.80 4.00 ITServices 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 3.50 3.50 4.00 PublicWorksAdministration 2.50 2.50 2.00 1.50 1.50 2.00 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 9.80 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 6.85 ShadeTree 0.40 0.40 0.40 0.50 0.50 0.50 EconomicDevelopment 0.70 ----- TotalGeneralFund 40.25 39.55 39.05 37.18 37.18 37.75 SpecialRevenueFunds EconomicDevelopment 0.30 0.20 0.20 0.20 0.20 1.20 MonticelloCommunityCenter 8.40 8.40 8.40 8.40 8.40 8.40 TotalSpecialRevenueFunds 8.70 8.60 8.60 8.60 8.60 9.60 EnterpriseFunds Water 3.15 3.15 3.15 3.80 3.15 3.80 Sewage 3.15 3.15 3.15 3.80 3.15 3.80 Liquor 10.00 10.00 10.00 10.00 10.00 10.20 DeputyRegistrar 6.00 6.00 6.00 6.10 6.10 6.20 FiberOptics 7.45 7.45 7.45 7.45 7.45 8.45 TotalEnterpriseFunds 29.75 29.75 29.75 31.15 29.85 32.45 TotalAllFunds 78.70 77.90 77.40 76.93 75.63 79.80 NUMBEROFFULL-TIMEEQUIVALENTS FiscalYearEndedDecember31, 82 REVENUETRENDS&ANALYSIS Revenuesareestimatedforeveryfundofthecityeachyear.Thissummaryofrevenueestimatesis supportedbydetailedrevenueestimatesforeachfundinlatersections.Thissectionofthebudget highlightsmajorrevenuesourcesforallthecityfundsascombinedandformajorgovernmentaland enterprisefunds:theGeneralFundandMonticelloCommunityCenterFund(governmentalfunds), alongwiththeWater,Sewage,Liquor,DeputyRegistrarandFiberOpticsfunds(enterprisefunds). Trendsforthesefundsandindividualrevenuesareshowntogetherwithestimatesforthecomingyear. TOTALCITYREVENUESANDOTHERSOURCES 2012 2013 2014 2015 2015 2016 % TOTALALLFUNDS ACTUAL ACTUAL ACTUAL BUDGETPROJECTED BUDGETCHANGE PropertyTaxes 8,157,147$7,961,030$8,386,953$8,535,000$8,535,000$9,205,000$7.9% TaxIncrements 1,052,110 992,339 838,000 726,215 729,577 677,244 -6.7% Franchise&OtherTaxes 347,934 327,667 334,726 316,500 316,500 363,900 15.0% SaleofGoods 4,854,798 5,085,925 5,165,737 4,973,000 5,213,833 5,367,710 7.9% Licenses&Permits 276,168 333,056 381,544 324,880 395,300 342,600 5.5% IntergovernmentalRevenues 576,581 1,283,769 733,566 3,200,677 1,029,240 1,348,177 -57.9% ChargesforServices 6,827,141 7,234,947 7,295,454 7,471,596 7,792,875 7,475,425 0.1% Fines&Forfeits 63,106 41,124 48,744 42,100 41,900 42,100 0.0% SpecialAssessments 2,061,191 2,110,283 1,953,370 1,008,525 2,841,430 818,525 -18.8% Miscellaneous 2,080,617 937,729 1,979,099 943,810 943,600 847,583 -10.2% ContributedCapital --966,494 140,450 1,020,565 140,450 0.0% OperatingTransfers 13,345,907 7,159,545 11,298,117 4,523,906 4,721,507 4,125,134 -8.8% DebtProceeds 1,004,698 3,503,224 683,374 3,322,000 4,000,662 7,000,000 110.7% TOTALREVENUES 40,647,398$36,970,638$40,065,178$35,528,659$37,581,989$37,753,848$6.3% Propertytaxesaccountforthesinglelargestrevenuesourceforthecity.Othersourcessuchas operatingtransfers(in)anddebtproceedsoccasionallysurpasspropertytaxes,buttheygenerally donotsupportday-to-dayoperations. TaxIncrementsarethemainsourceofrevenuefortheEconomicDevelopmentFund.Thisfund accountsforthecity’staxincrementfinancing(TIF)districtsandothergeneraleconomic developmentactivities.TwoTIFdistrictsweredecertifiedin2015. Licenses&permitsarecomprisedprimarilyofbuildingpermits,whichareconservatively estimatedtobeevenwith2013actualrevenue. Intergovernmentalrevenuesareexpectedtodecreaseasstateaidforsomecapitalprojects (Fallonoverpass,TH25/CSAH75improvements,etc.)isdistributedovermultipleaccounting periods.Withastrongcommercialtaxbase,thecitygenerallydoesnotqualifyformuchstateaid thatisnotprojectspecific. Specialassessmentsprimarilysupportdebtservicefunds.Prepaymentoffuturecertified assessmentsin2015,willaffectfutureannualcollections. 83 Chargesforservicesdonotreflectchangestothefeescheduleoccurringafteradoptionofthe budget.Thecityusesconservativerevenuebudgetingpracticestoensurerevenueswillbe sufficienttomeetoperatingneeds. Miscellaneousrevenuesareestimatedtodecreasewithlowerreturnsoninvestmentearnings-- thelargestportionofthisrevenueclassification.Theamountofinvestiblefundsisexpectedto declinewithfundbalances.Overallrevenuesandothersourceslagexpendituresandotheruses. Operatingtransfers(In)areexpectedtodeclinewithfewerprojectstosupportwithinternal sources.In2012,thecitymadesignificantunbudgetedtransferstoreduceinterfundloan balances.In2015,operatingtransfersarelargelygoingtodebtservicefundsforannualprincipal andinterestpaymentsonbondeddebt. In2016,debtproceedsareestimatedat$7.0millionforsewagetreatmentplantimprovements, corestreetimprovementsandth395th Streetextension.TheMinnesotaPublicFacilitiesAuthority isprovidingalowinterest(1.06%for30years)loanfortheplantproject. Thechartbelowprovidesanoverallpictureofthecity’srevenuesandothersources. Property Taxes 24% Saleof Goods 14% Chargesfor Services 20% Operating Transfers 11% Debt 19% AllOther 12% RevenueandOtherSources (AllFunds) PROPERTYTAXES Thecityreliesonpropertytaxestosupportsuchfunctionsasgeneralgovernment,publicsafety, publicworks,recreationandculture,anddebtservice.For2016,thecounciladoptedageneral levyof$8.925million,whichis$390,000(4.6%)morethantheprioryear.Forthefirsttime,the councilalsoadoptedaHousingandRedevelopmentAuthority(HRA)specialbenefitlevyof 84 $280,000.TheentireHRAlevywillberecordedasrevenueintheEconomicDevelopment Authority(EDA)Fund.TheGeneralFundwillnolongermakeoperatingtransfers—annuallyabout $90,000--totheEDAFund.Bothlevieswillbecombinedforgraphicalandcontextualpurposes. Thetaxlevyhasrisenaheadofinflationthelastthreeyears. Thefollowingchartreflectsthechangesinthetaxlevyoverthelasttenyears: $9,205,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 2007200820092010201120122013201420152016 PropertyTaxLevyHistory Accountingforavarietyofactivities,theGeneralFundwillreceivelessthan70%ofthe2016 propertytaxlevy.However,propertytaxesprovideapproximately81%oftheGeneralFund’s revenue.Inprioryears,thelevyfortheMonticelloCommunityCenterhadtwocomponents: operationsanddebtservice.Thedebtservicelevydropsofffor2016.Theoperationscomponent increased$6,000to$364,000.Thefollowingchartrepresentsthedistributionofthetaxlevyfor 2015. GeneralFund, $6,177,000,67% HRALevy, $280,000,3% MCCOperations, 364,000,4% DebtService*, 2,384,000,26% PropertyTaxLevy(Adopted-2016) *Note:Debtserviceincludes$300,000forfuturestreetreconstructiondebt 85 Whendeterminingthepropertytaxlevy,thecitycouncilandstaffconsidertheimpactthelevy willhaveonvariouspropertyowners.Thisimpactisthenbalancedagainstservicesprovidedand servicelevels.Thecityhasbeenabletofundservicesatcurrentlevelswitharelativelyflatlevy. Thegrowingeconomyandincreasedpropertyvalueshaveledtoadropinthetaxcapacityrate. Still,from2008through2012,propertyvaluesdeclinedasaresultofaweakernationalandlocal economy.Estimatedmarketvaluesareconvertedtotaxcapacitybyusingspecificstateformulas forvarioustypesofproperties. In2013,thetaxcapacitygrewahealthy$2.9million(18.6%)to$18.7million.Why?Thenuclear powerplantlocatedwithinthecitylimitsaddedover$160millioninnewtaxablevaluewith capitalequipmentupgrades.Consequently,equipmentretirementsrelatedtothesameuprate causedaslightdeclinein2014.Historyrepeatingitself,thetaxcapacityfor2015grewby$5.7 million(31%)to$23.9millionwithanotheruprateatthenuclearpowerplant.Further,the benefitsfromthelastuprateextendinto2016,adding$80millionintaxmarketvalueandnearly $2millionintaxcapacity.Thetaxcapacityfor2016taxespayableis$25.9millionor8.3%higher than2015. Inastablelevyenvironment,taxcapacityandtaxcapacityrateswilltypicallyhaveaninverse relationship.WithcityandHRAtaxcapacityratesaddedtogether,thefollowingchart demonstratesthatrelationshipoverthelast15years: $9.6M $23.9M $25.9M67.645 35.737 35.583 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(City+HRA) TaxCapacityValue TaxCapacityRate GENERALFUND TheGeneralFundisusedtoaccountforallfinancialresourcesofthecity,exceptforthoserequiredto beaccountedforinanotherfund.Majorfunctionssupportedbygeneralfundrevenuesinclude:city andfinanceadministration,policeandfireservices,publicworks,recreationandculture.Revenueis 86 estimatedtobe$7,596,000(+4.8%)forthe2016budgetyear.TheprimaryGeneralFundsourceof revenueispropertytaxesat$6,177,000(+5%),whichaccountsfor81%ofthetotal.Noothersingle categoryofrevenuesexceeds5%oftotalrevenues.TheGeneralFundisnotsupportedbyany transfers(othersources)fromotherfunds. ThefollowingchartdepictsGeneralFundrevenuesasrepresentedinthe2015adoptedbudget: PropertyTaxes, 81% GeneralFundRevenues-2016 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 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 M illions GeneralFundRevenues PropertyTaxes Licenses&Permits AllOther 87 MONTICELLOCOMMUNITYCENTER TheMonticelloCommunityCenter(MCC)providesafacilitywithspaceforavarietyofrecreational, professional,andeducationalopportunities.Asidefromitsportionofthepropertytaxlevy,theMCC issupportedbyavarietyoffeesformemberships,activities,rental,andconcessions.Councilpasseda revenuerecoverypolicyalongwithbudgetadoptionthatnowrequirestheMCCtocover85%ofits operatingcosts—includingequipment—withfeesandcharges. Inthefollowingchart,2012through2014areactualamountsand2015and2016areestimates.The 2016budgetreflectsfurtherimplementationoftherevenuerecoverypolicy. $- $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 2012 2013 2014 2015 2016 DEPUTYREGISTRAR(aka:DMV) ThecityisauthorizedbytheStateofMinnesotatooperateaDMV.Feescollectedfromissuanceof motorvehicleandDNRlicensesaretheDMV’smainrevenuesource.Feesareregulatedbythestate. Astateapprovedfeeincreasealongwithbettereconomicconditionshasresultedinhigherrevenues, startingin2012.Withdarkershadesofgreenrepresentinghigher(better)numbersinconditional formatting,thefollowingchartshowsthehistoryofDMVrevenuesoverafiveyearperiod. DMVRevenue Month 2011 2012 2013 2014 2015 Average Jan 21,372$37,534$39,765$40,164$46,375$37,042$ Feb 27,624 42,748 40,770 38,911 44,030 38,817 Mar 33,573 50,459 36,276 46,503 58,146 44,992 Apr 32,098 44,251 44,208 49,621 50,202 44,076 May 33,920 37,751 48,814 47,105 45,042 42,527 Jun 32,732 43,378 37,904 43,703 47,721 41,088 Jul 27,597 38,589 40,822 44,600 46,171 39,556 Aug 38,376 39,507 38,530 43,821 42,362 40,519 Sep 33,658 31,890 36,622 35,072 40,759 35,600 Oct 29,206 36,491 32,969 38,840 37,245 34,950 Nov 29,131 29,241 27,357 33,506 32,457 30,338 Dec 25,931 27,109 32,140 35,647 40,608 32,287 Total 365,217$458,948$456,178$497,493$531,118$461,791$ Transactions 58,257 62,999 62,420 67,462 72,135 64,655 88 WATERANDSEWAGEFUNDS WaterandsewagechargesforservicesareprimarilycomprisedofprovidingMonticelloresidentsand businesseswithwaterandsewageservices.Basedpartiallyonthelevelofconsumption,theseutility fundseachhaveseparatechargesfordeliveredservices.Thecitysetratestocoveroperatingcosts,a portionofdepreciation,anddebtservice.Asnewdevelopmentslowed,theburdenoninfrastructure replacementcostsshiftedtoutilityratesfromimpact(access)charges.Thewaterandsewagefunds areexpectedtoprovidesomeleveloffuturesupportfordebtserviceincurredtomakewaterand sewagesystemimprovements. Waterandsewagerevenuegrewfrom2007to2011asconsumptiondroppedandratesincreased. Afterpeakingin2012(adryyear),waterconsumptionagaindeclinedaswaterandsewagerates climbed,pushingupbothwaterandsewagerevenues.Thefollowingchartplotsrevenuesforwater andsewageserviceontheprimaryaxis(left)againstwatersalesonthesecondaryaxis(right): - 100 200 300 400 500 600 700 $- $0.5 $1.0 $1.5 $2.0 $2.5 2007200820092010201120122013201420152016 Gallons Sold (Millions) Revenues (Millions) Water&SewageRevenue Water Revenue Sewage Revenue H2OSold (Gals) Waterservicechargeshavetwocomponents:basechargewithaminimumusageamountand consumptionchargeforusageabovetheminimumamount.Bothchargeshaveincreasedsteadily overthelastnineyears:averagebaseandconsumptionchargeincreaseswere7.9%and8.6%, respectively.For2016,noincreasewasincludedinthebudgetforeitherthebaseorconsumption charge.However,subsequenttobudgetadoption,thecouncilraisedthebasechargeby$1(5.6%) theusagechargeby2.8%. Sewagecharges,similarlytowatercharges,havetwocomponents:basechargewithaminimum usageamountandconsumptionchargeforusageabovetheminimumamount.Bothchargeshave increasedsteadilyovertheyears:averagebaseandconsumptionchargeincreaseswere8.2%and 7.9%,respectively.For2016,noincreasewasincludedinthebudgetforeitherthebaseor consumptioncharge.However,subsequenttobudgetadoption,thecouncilraisedthebasecharge by$1(4.6%)andtheusagechargesby2.2%. 89 Thefollowingchartreflectsthewaterandsewagebaseratesoverthelasttenyears: $- $5 $10 $15 $20 $25 2007200820092010201120122013201420152016 Quarterly C harge SewageandWaterBaseRates Sewage Water LIQUORFUND Withtotal2015salesofnearly$5.5million,Monticello’sliquorstoreranksnearthetopofMinnesota citieswithonlyonestore.However,revenuegrowthisexpectedtoslowbecauseofstoresize limitations.Totalsaleshaveclimbedanaverageof4%forthelastfiveyears;wineisthefastest growthcategorywithanaverageabove7%overfiveyears. Liquorsaleshaveincreasedoverthelastfiveyearsandthebudgetreflectsthistrend.TheLiquor Fundhasoneretailoutlet:Hi-WayLiquors.Thisfundprovidesvitalresourcesformanycommunity projectsincludingcommunitycenterandstreetimprovements.Conservativerevenueestimatesare usedforbudgetingpurposes.However,2016netcashflowfromoperationsshouldtop$600,000.In prioryears,interestearningscontributedsignificantlytonetcashflows.Alargeoperatingtransfer outin2012depletedcashandsubsequentongoingtransfershavecurtailedinvestmentearnings. $- $1 $2 $3 $4 $5 $6 2011 2012 2013 2014 2015 Millions Hi-WaySalesbyCategory Wine Liquor Beer 90 FIBEROPTICSFUND Monticello’stelecommunicationsutility,FiberNetMonticello,providesinternet,telephone(voice) andvideo(TV)services.Cityresidentialandcommercialcustomerscansubscribetoone,twoorall threeservices.FiberNetcontinuestofacecompetitionfromtwolargeprivateproviderswithdeep pockets.Asaresult,subscribercountsforvoiceandTVhavedeclinedinrecentyears.Internetis showingsomegrowthasmorecustomersstreamvideoservices.Still,commercialandresidential customersarebenefittingfromlowerbillswithFiberNet’spresenceinthemarketplaceevenifthey arenotFiberNetcustomers. Historicaldataforyearspriorto2015areskewedbythewaytelephonecustomerswerecounted. ThedatainthegraphsbelowshowastablecompetitiveenvironmentforFibernetin2015. 13601360 1364 1362 1369 13741374 1381 1392 1399 1406 1416 813 798 788 777 755 748 739 732 729 735 725 723 582 571 560 557 555 555 544 536 535 529 523 523 0 500 1000 1500 2000 2500 3000 Jan Feb MarAprMay Jun Jul Aug Sep OctNovDec 2015TotalSubscribedServices TotalPhone TotalTelevision TotalInternet 1401 1389 1391 1387 1391 1397 1399 1407 1411 1420 1423 1431 138 143 140 137 137 135 133 133 135 135 135 138 1250 1300 1350 1400 1450 1500 1550 1600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015ResidentialandBusinessCustomerCounts Business Residential The2016budgetincludesrateincreasesforlong-distance(previouslynone)andvideopackages.The citycontinuestoassessthemarketplaceanditsservicedeliverycostsandwillraisepricesas conditionswarrant. 91 APPROPRIATIONSBYTYPE Expenditures,oftencalled“Appropriations,”areclassifiedunderoneofsixmajorcategories: personnelservices(wages&benefits),supplies,otherservices&charges(professionalfees, utilities,etc),capitaloutlay,debtservice,andoperatingtransfers(otherfinancinguses).Thegraph belowshowstherelativepercentageofFY16budgetedexpendituresforthesesixmajorcategories forallfunds,combined.Itexcludesdebtservicepaidfromanadvancerefundingescrowaccount. Personnel Services 14% Supplies 12% CapitalOutlay 33% OtherServices &Charges 18% DebtService 13% Operating Transfers 10% 2016AppropriationsbyType-AllFunds APPROPRIATIONSBYTYPE,GENERALFUNDONLY—Usingthosesamecategoriesofexpenditure type,therelativepercentagesofbudgetedexpendituresfortheGeneralFundareshownbelow.As youcansee,theGeneralFundiscomprisedofamuchhigherpercentageofpersonnelservicescosts comparedtoallfunds,asawhole.TheGeneralFundsupportsverylittlecapitalimprovementsand nodebtservicecomparedtoallfunds,asawhole. Personnel Services 39% Supplies 9% Capital Outlay 3% Other Services& Charges 49% ExpendituresandOtherUses-2016 92 Ingovernmentalagencies,salaries,wagesandbenefits(personnelservices)normallyrepresentthe largestofthesecategories.However,duetothesignificantinvestmentininfrastructure,citieshave amuchhigherpercentageofthebudgetdevotedtooperatingandcapitalcosts,includingdebt service,thanmostothergovernmentalagencies.Oneotherfactor:thecitycontracts(otherservices andcharges)forlawenforcement,legalandassessingservices. Asshown,enterprisefunds,debtservicefundsandtheGeneralFundaccountfor65%ofthetotal expendituresofthecity. TheGeneralFundisthecity’sprimaryoperatingaccountforgeneralgovernment operations. Debtservicefundsincludeonlynon-enterpriseandnon-internalservicefunddebt. Thesefundsaresupportedwithpropertytaxes,specialassessments,taxincrements, andaccessfundtransfers. Enterprisefundsconsistofwater,sewage,liquor,deputyregistrar(DMV),andfiber opticsfunds.Thesefundsoperateonaself-supportingbasis. Specialrevenuefunds,totaling6%ofappropriations,includeavarietyoffeesupportedfunds includingthecommunitycenterandcemetery. CapitalProjectFunds,totaling27%ofappropriations,includeimprovementfundsforstreet reconstructionandstreetlighting,andothercapitalassetacquisitionfunds,excludingthose purchasedthroughenterpriseandinternalservicefunds. GeneralFund 18%Special Revenue Funds 6%DebtService Funds 12% Capital ProjectFunds 27% Enterprise Funds 35% Internal ServiceFunds 2% 2016AppropriationsbyFund-Type 93 Thispageintentionallyleftblank 94 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 GENERAL FUND GENERALFUND-SUMMARY FUNDDESCRIPTION Oneoffivegovernmentalfundtypes,theGeneralFundservesasthechiefoperatingfundofthe city.TheGeneralFundisusedtoaccountforallfinancialresourcesnotaccountedforinsomeother fund.Thefundusesthemodifiedaccrualbasisofaccountingforbudgetingandfinancialreporting purposes.Thismeansexpendituresarerecordedwhentheliabilityisincurredandrevenuesare recordedwhentheybecomemeasurableandavailable.TheadoptedGeneralFundbudgetisa balancedbudget--currentrevenuesandothersourcesequalexpendituresandotheruses. ISSUES TheGeneralFund’slargestrevenuesourceispropertytaxes.In2016,theGeneralFund’sportionof thelevygrewby5%--theoveralllevygrewby4.6%(7.9%includingtheHRAlevy).ThePublicWorks Departmenthasthelargestappropriationfor2016. GENERALFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes $5,669,969 $5,580,437 $5,507,285 $5,882,000 $5,882,000 $6,177,000 5.0% Franchise&OtherTaxes 237,022 241,664 237,173 236,500 236,500 283,900 20.0% Licenses&Permits 275,198 331,136 378,809 321,180 391,600 338,900 5.5% IntergovernmentalRevenues 304,395 373,482 321,891 299,677 329,240 301,177 0.5% ChargesforServices 310,307 280,288 318,278 267,261 276,524 267,664 0.2% Fines&Forfiets 63,106 41,124 48,744 42,100 41,900 42,100 0.0% SpecialAssessments 10,349 22,351 22,808 300 300 300 0.0% Miscellaneous 491,770 117,863 330,858 196,982 160,982 184,959 -6.1% OperatingTransfers 1,729 -------- TOTALREVENUES 7,363,845$6,988,345$7,165,846$7,246,000$7,319,046$7,596,000$4.8% EXPENDITURESBYDEPARTMENT GENERALGOVERNMENT MayorandCouncil 51,988$53,696$52,182$53,925$53,925$53,925$0.0% CityAdministration 228,738 260,322 273,992 305,153 312,353 320,099 4.9% Elections 38,933 2,425 41,835 3,093 3,093 42,864 1285.8% Finance 337,348 326,510 385,662 405,558 402,674 428,980 5.8% Audit 39,227 47,823 53,541 43,000 43,000 45,000 4.7% CityAssessing 49,600 49,664 49,832 52,115 52,115 52,115 0.0% Legal 40,275 46,905 29,303 37,000 37,000 37,000 0.0% HumanResources 84,041 93,067 90,565 116,631 118,131 118,688 1.8% Planning&Zoning 163,629 182,753 220,080 203,320 242,320 218,023 7.2% InformationTechnologyServices 130,102 95,572 33,759 46,829 26,138 11,540 -75.4% CityHall 238,767 216,693 193,874 204,049 202,507 209,723 2.8% PrairieCenterBuilding 15,095 15,355 14,409 19,080 15,480 14,120 -26.0% TOTALGENERALGOVERNMENT 1,417,743$1,390,785$1,439,034$1,489,753$1,508,736$1,552,077$4.2% Continued… 95 GENERALFUND 2012 2013 2014 2015 2015 2016 % (Continued)ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PUBLICSAFETY LawEnforcement 1,187,382$1,190,441$1,145,247$1,175,815$1,175,815$1,222,627$4.0% Fire&Rescue 207,778 222,141 306,779 266,011 306,011 333,823 25.5% FireRelief 74,221 109,594 108,186 80,000 80,000 80,000 0.0% BuildingInspections 248,376 251,007 266,545 304,452 304,452 369,663 21.4% CivilDefense 2,719 9,707 1,661 3,856 3,356 3,930 1.9% AnimalControl 49,594 47,426 49,439 50,724 50,309 51,348 1.2% NationalGuard 14,287 14,517 14,061 17,050 16,050 16,050 -5.9% TOTALPUBLICSAFETY 1,784,357$1,844,833$1,891,918$1,897,908$1,935,993$2,077,441$9.5% PUBLICWORKS PublicWorksAdministration 176,457$113,882$122,151$123,580$123,580$194,771$57.6% Engineering 200,287 224,028 195,841 169,508 156,708 160,058 -5.6% PublicWorksInspecitons 64,827 54,878 36,867 96,952 91,121 88,809 -8.4% Streets&Alleys 659,738 692,011 739,443 885,810 879,810 976,962 10.3% Ice&Snow 133,193 210,552 308,387 250,684 250,684 284,280 13.4% Shop&Garage 219,646 186,741 177,644 194,810 199,310 204,101 4.8% Stormwater 51,468 12,064 16,842 73,168 72,668 73,121 -0.1% StreetLighting 196,779 206,005 195,695 229,500 227,500 263,900 15.0% RefuseCollection 500,037 505,996 517,955 588,291 573,597 614,437 4.4% TOTALPUBLICWORKS 2,202,432$2,206,157$2,310,825$2,612,303$2,574,978$2,860,439$9.5% TRANSIT Bus --10,000 40,000 40,000 40,000 0.0% TOTALTRANSIT --10,000 40,000 40,000 40,000 0.0% RECREATIONANDCULTURE SeniorCenter 88,441 90,219 97,547 99,922 99,922 101,672 1.8% IceArena 75,000 75,000 ------- ParkOperations 533,537 572,985 570,639 803,325 795,325 824,997 2.7% ParkBallfields 29,419 25,517 18,149 32,800 27,650 27,300 -16.8% ShadeTree 52,983 53,475 68,891 58,628 66,128 63,527 8.4% Library 29,715 35,395 36,764 39,962 39,962 40,526 1.4% TOTALRECREATIONANDCULTURE 809,095$852,591$791,990$1,034,637$1,028,987$1,058,022$2.3% UNALLOCATED EconomicDevelopment 45,585 -------- Insurance 233,717 127,710 12,584 7,329 7,329 8,021 9.4% TOTALUNALLOCATED 279,302$127,710$12,584$7,329$7,329$8,021$9.4% OTHERUSES --- OperatingTranfers 2,393,502$130,213$293,000$164,070$94,900$-$-100.0% TOTALOTHERUSES 2,393,502$130,213$293,000$164,070$94,900$-$-100.0% TOTALEXPENDITURES 8,886,431$6,552,289$6,749,351$7,246,000$7,190,923$7,596,000$4.8% FUNDBALANCE-JANUARY1 5,001,093$3,478,507$3,914,563$4,331,058$4,331,058$4,459,181$ Excess(Deficiency)of RevenuesoverExpenditures (1,522,586)436,056 416,495 -128,123 - FUNDBALANCE-DECEMBER31 3,478,507$3,914,563$4,331,058$4,331,058$4,459,181$4,459,181$ 96 TheprevioustablesummarizesGeneralFundrevenuesbyclassificationsandexpendituresby activities/divisionsanddepartments.Thetablebelowsummarizesbothrevenuesandexpenditures byclassifications. GENERALFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 5,669,969$5,580,437$5,507,285$5,882,000$5,882,000$6,177,000$5.0% TaxIncrements --------- Franchise&OtherTaxes 237,022 241,664 237,173 236,500 236,500 283,900 20.0% Licenses&Permits 275,198 331,136 378,809 321,180 391,600 338,900 5.5% IntergovernmentalRevenues 304,395 373,482 321,891 299,677 329,240 301,177 0.5% ChargesforServices 310,307 280,288 318,278 267,261 276,524 267,664 0.2% Fines&Forfeits 63,106 41,124 48,744 42,100 41,900 42,100 0.0% SpecialAssessments 10,349 22,351 22,808 300 300 300 0.0% Miscellaneous 491,770 117,863 330,858 196,982 160,982 184,959 -6.1% OperatingTransfers 1,729 -------- TOTALREVENUES 7,363,845$6,988,345$7,165,846$7,246,000$7,319,046$7,596,000$4.8% EXPENDITURES PersonnelServices 2,710,939$2,589,353$2,555,898$2,734,757$2,758,809$2,979,264$8.9% Supplies 482,080 520,328 534,655 580,800 597,150 662,900 14.1% OtherServices&Charges 3,366,417 3,291,073 3,256,898 3,570,773 3,568,264 3,712,936 4.0% CapitalOutlay -59,535 108,900 195,600 171,800 240,900 23.2% OperatingTransfers 2,326,995 92,000 293,000 164,070 94,900 --100.0% TOTALEXPENDITURES 8,886,431$6,552,289$6,749,351$7,246,000$7,190,923$7,596,000$4.8% FUNDBALANCE-JANUARY1 5,001,093$3,478,507$3,914,563$4,331,058$4,331,058$4,459,181$ Excess(Deficiency)of RevenuesoverExpenditures (1,522,586)436,056 416,495 -128,123 - FUNDBALANCE-DECEMBER31 3,478,507$3,914,563$4,331,058$4,331,058$4,459,181$4,459,181$ BUDGETCOMMENTARY: Revenues For2016,budgetedrevenuesareestimatedtoincreaseby4.8%.TheGeneralFund’sportionofthe taxlevyisbudgetedtoincreaseby5%,whichisgreaterthantheoveralllevyincreaseof4.6%. Propertytaxesaccountforover80%ofGeneralFundrevenues.TheGeneralFund’sallocationof franchiseandothertaxesincreasedtomatchrelatedexpenditures(streetlighting).Chargesfor servicesincreasedmodestlywithfeestotownshipforfireprotectionservices.Permitsandfeeswill increasewithadditionaldevelopment.Miscellaneousrevenuesareestimatedtofallslightly. Expenditures Expendituresarebudgetedtobestableacrossallclassifications,exceptcapitaloutlays.Mostofthe capitaloutlayamountreflectsCapitalEquipmentFundpurchases,whicharechargedbackthrough leasepayments.Personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuary and1%inJuly)marketratewageincrease.TheoperatingtransfertotheEconomicDevelopment AuthorityFundfor$94,900waseliminatedwiththeimplementationoftheHRALevy. 97 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.Examinecityfacilityneedstomeetfuturecityoperations. ISSUES: 1.Capitalizeonthecity’suniquenessbydevelopingacomprehensivevisionstatementand settingachievablegoals. 2.Successionplanningofcitystaff. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Councilmeetings 24 24 24 24 24 Specialmeetings/workshops 20 26 25 22 25 Councilresolutions 85 101 100 92 100 BUDGETCOMMENTARY: Thecouncil’sbudgetremainsconsistentwithpreviousyears.Themayorearns$700permonthand eachcouncilorearns$600permonth. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % MAYOR&COUNCIL Actual Actual Actual Budget Projected Budget Change PersonnelServices 39,685$39,685$39,835$40,500$40,500$40,500$0.0% Supplies --------- OtherServices&Charges 12,303 14,011 12,347 13,425 13,425 13,425 0.0% CapitalOutlay --------- TOTALEXPENDITURES 51,988$53,696$52,182$53,925$53,925$53,925$0.0% 98 CITYADMINISTRATION DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41301 ACTIVITYSCOPE: Cityadministrationprovidestheoveralldirectionofthecity,asdeterminedbycouncilandmayor. Thecityadministratorservesasthechiefadministrativeofficer,ensuringthatlaws,ordinances,and resolutionsareimplementedandenforced.Theadministratorisalsoresponsibleformanagingthe operationsofallcitydepartments.Thecityclerk'sresponsibilitiesinvolvethemanagementand retentionofallofficialrecordsanddocumentsofthecity.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 2012 2013 2014 2015 2016 Councilmeetingsagendas 43 49 41 49 45 Recordsdigitallyconverted 75%75%75%75%75% Ordinancesprocessed 11 8 18 30 15 Councilminutesapproved 43 49 41 49 45 99 BUDGETCOMMENTARY: Theadministrationresultsfor2013and2014reflecttheshiftingofexpensesfromotherbudgetary units.Theincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservices andinsurances(property,liabilityandvehicle).The2016personnelservicesbudgetincludesafull stepincreaseanda3%(2%inJanuaryand1%inJuly)marketratewageincrease.Otherbudgetitems areexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % ADMINISTRATION Actual Actual Actual Budget Projected Budget Change PersonnelServices 207,440$214,818$214,085$245,190$252,390$259,145$5.7% Supplies 483 298 30 300 300 300 0.0% OtherServices&Charges 20,815 45,206 59,877 59,663 59,663 60,654 1.7% CapitalOutlay --------- TOTALEXPENDITURES 228,738$260,322$273,992$305,153$312,353$320,099$4.9% 100 ELECTIONS DEPARTMENT:GeneralGovernment SUPERVISOR:DeputyCityClerk FUND#:101 ACTIVITY#:41410 ACTIVITYSCOPE: Theelectionactivityprovidesthepreparationofanyandallelections,includingorganizingthepolling places,electionjudges,andvotetabulations. OBJECTIVES: 1.Continuetoresearchsitesforapossiblesecondpollingprecinct. 2.Prepareforandstaycurrentwithelectionlawchangesforfutureelections. 3.Recruitandtrainjudgestoensurepositivevoterexperiences. ISSUES: 1.Staycurrentonelectionlaws. 2.Recruitandtrainnewcityclerk. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Voters,numberof 6,007 0 3,714 0 6,000 Registervoters,numberof 6,164 6,164 6,394 6,394 6,500 Pollingplaces 1 1 1 1 1 Electionsjudges 50 0 50 0 50 BUDGETCOMMENTARY: Electionsareheldinevennumberyears.In2016,therewillbeprimaryandgeneralelectionsfor presidentandafullslateoffederal(includingpresident),state,andlocaloffices.Off-yearelection expendituresareformaintenancecontractsonvotingequipment. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % ELECTIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 20,367$-$23,149$-$-$23,450$--- Supplies 450 -632 ------ OtherServices&Charges 18,116 2,425 18,054 3,093 3,093 19,414 527.7% CapitalOutlay --------- TOTALEXPENDITURES 38,933$2,425$41,835$3,093$3,093$42,864$1285.8% 101 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). 102 MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Outcome/Effectiveness: GFOABudgetAward Yes Yes Yes Yes Yes GFOACertificateof Achievement YesYesYesYesYes BondRating A2 A2 A2 A2 A2 ACHsas%oftotalAPactivity 20%39%45%43%44% Efficiency: AP&ACHsperFTE(1.5)2,615 1,938 2,121 2,016 2,100 WorkLoad: APchecks,numberof 3,139 1,783 1,744 1,731 1,750 ACH's 784 1,124 1,437 1,293 1,400 W-2s 258 269 273 290 275 1099's 49 35 56 49 50 Journalentries 3,0093,106 3,003 2,889 2,900 BUDGETCOMMENTARY: TheFinancebudgetincludesfundstohandlethefinancialtransactionsofthecity,inanefficient manner,whilemaintainingthehighestlevelofinternalcontrolsandsegregationofduties.Theprior yearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservicesand insurances(property,liabilityandvehicle).The2016personnelservicesbudgetincludesafullstep increaseanda3%(2%inJanuaryand1%inJuly)marketratewageincrease.In2013,onefull-time positionwasreturnedtopart-timestatus.Otherbudgetitemsareexpectedtoremainclosetoprior yearlevels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % FINANCE Actual Actual Actual Budget Projected Budget Change PersonnelServices 304,516$282,224$317,249$335,490$332,606$355,097$5.8% Supplies 2,556 2,540 3,222 2,650 2,650 3,300 24.5% OtherServices&Charges 30,276 41,746 65,191 67,418 67,418 70,583 4.7% CapitalOutlay --------- TOTALEXPENDITURES 337,348$326,510$385,662$405,558$402,674$428,980$5.8% 103 AUDIT DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41540 ACTIVITYSCOPE: Anauditofcityfinancesmustbecompletedonanannualbasisforthecitytoremainincompliance withfederalandstateaccountingpractices. OBJECTIVES: 1.Completethefinancialauditinatimelyfashion. 2.Continuetoreducethenumberofauditfindingsandadjustments. ISSUES: 1.Increasingreportingrequirementsandauditingstandards. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Auditsubmittaldate 6/29 6/26 6/30 6/25 6/15 Auditfindings 2 2 2 2 2 Opinion UnqualifiedUnqualifiedUnmodifiedUnmodifiedUnmodified GFOAAward YesYesYesYesYes BUDGETCOMMENTARY: Thebudgetforauditingconsistsentirelyoftheexpensesassociatedwiththerequiredauditprocess. Inlate2007,aRequestforproposal(RFP)forauditserviceswassenttoseveralfirms.TheRFP guaranteedthecostforauditservicesfortheyearsended2007through2009andresultedinacost decreasefrompreviousyears.Thiscontractwasextendedfor2016fiscalyear.Thefinance departmentplansonpreparingamajorityofthe2015financialreport. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % AUDIT Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 39,227 47,823 53,541 43,000 43,000 45,000 4.7% CapitalOutlay --------- TOTALEXPENDITURES 39,227$47,823$53,541$43,000$43,000$45,000$4.7% 104 ASSESSING DEPARTMENT:GeneralGovernment SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:41550 ACTIVITYSCOPE: AssessingrequirementsarehandledthroughacontractthecitywiththeWrightCountyassessor. Therearenoplanstoalterthisactivity. OBJECTIVES: 1.Toassessnewandexistingparcelswithinthecityasrequired. ISSUES: 1.Pressureoffairlyappraisingpropertiesundercurrentmarkettrends. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Newresidentialproperties 2 22 52 73 50 Newcommercialproperties 6 1 2 2 5 Parcelsassessed 4,6694,6684,6034,6114,700 BUDGETCOMMENTARY: AssessingservicesarecontractedwiththeWrightCountyassessor.Theestimatedcostsfor assessmentsarebasedonnumberofexistingandnewparcels.Thecitypays$10.50perparcelfor assessmentservicesand$25foreachnewpermitwithanestimatedconstructionvalueunder $499,999and$100forvaluesover$500,000. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % ASSESSING Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 49,600 49,664 49,832 52,115 52,115 52,115 0.0% CapitalOutlay --------- TOTALEXPENDITURES 49,600$49,664$49,832$52,115$52,115$52,115$0.0% 105 LEGAL DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41601 ACTIVITYSCOPE: Privatelegalfirmsprovideallthecity’slegalservices.Activitiesincludedaretheissuanceoflegal opinions,preparationofordinances,resolutions,contracts,andagreements,andtheconductofcivil litigation.Additionallegalexpenditures,suchaspublications,feesandothercosts,areaccountedfor inthelegalbudget. OBJECTIVES: 1.Continuetorealizesavingsbycontractinglegalservices. ISSUES: 1.Risingcostsassociatedwiththeneedforexistingandnewlegalservices. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Billedhours: Administration 201.3 269.5 280.5 344.7 320.0 Codeenforcement 14.3 3.9 21.9 14.8 20.0 Fiberoptics 130.8 153.5 116.5 56.0 50.0 Allother 48.0 41.2 86.9 48.6 50.0 Total 394.4 468.1 505.8 464.1 440.0 BUDGETCOMMENTARY: Thecitycontinuestorealizesavingsfromnothavingfull-timecounsel.Legalservicesprovidedto FiberNetarechargedtotheFiberOpticsFund. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % LEGAL Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 40,275 46,905 29,303 37,000 37,000 37,000 0.0% CapitalOutlay --------- TOTALEXPENDITURES 40,275$46,905$29,303$37,000$37,000$37,000$0.0% 106 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 2012 2013 2014 2015 2016 Workerscompensation experiencemodification 111%97%76%69%69% Full-timepositions 58 55 55 55 56 Part-timepositions 82 95 100 103 100 Full-timepositionsfilled 2 3 7 5 4 Otherpositionsfilled 59 77 79 89 79 Avg,numberofemployess 140 150 155 158 160 107 BUDGETCOMMENTARY: In2010thehumanresourcepositionwaschangedtoafull-timeposition.The2015budgetreflects estimatedcostsforsettinguptraining,providingcitystaffwithbenefitandcompensation information,andotherexpensesbasedonpastexperience.The2014increaseinotherservicesand chargesreflectsthere-allocationofexpensesforITservicesandinsurances(property,liabilityand vehicle).Thecurrentyearincreaseinotherservicesrepresentstheadditionofcity-wideleadership training.The2016personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuary and1%inJuly)marketratewageincrease.Otherbudgetitemsareexpectedtoremainclosetoprior yearlevels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % HUMANRESOURCES Actual Actual Actual Budget Projected Budget Change PersonnelServices 71,732$78,362$70,988$87,213$93,213$92,449$6.0% Supplies 180 328 356 500 500 600 20.0% OtherServices&Charges 12,129 14,377 19,221 28,918 24,418 25,639 -11.3% CapitalOutlay --------- TOTALEXPENDITURES 84,041$93,067$90,565$116,631$118,131$118,688$1.8% 108 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. 109 MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Outcome/Effectiveness: Grantsawarded 4 2 Grantawards $571,820 $1,163,248 Administrativeapplications(total)5 10 16 20 15 processedwithin5workingdays 2 2 7 5 5 SitePlanreviewsprocessed within14workingdays 2 3 3 4 LandUseapplicationsprocessed within60workingdays 28 19 32 31 15 Reconciliationsprocessedwithin 60daysofthedecision 12 18 15 15 Annexationpetitions 1 Efficiency: ApplicationsprocessedperFTE(1)28 35 47 56 35 WorkLoad: PlanningApplications: Variances 2 3 2 1 2 CUPs 4 4 8 5 5 PUD/AmendmentstoPUD 1 3 6 3 2 InterimUsepermits 1 2 1 CompPlanamendments 2 1 1 Mapamendments 1 4 3 3 2 Non-cityzoningtextamendments 2 1 10 2 Plats/adminstrativesubdivisions 4 4 3 7 2 Administrativepermits 8 10 16 20 15 Siteplanreviews 2 3 3 5 5 Appeals 1 Vacations 3 2 1 Totalapplications 28 35 47 56 35 Planningreconciliations 14 12 18 15 15 PlanningCommissionmeetings 12 13 15 12 12 EDAMeetings 12 12 12 12 12 IEDCMeetings 11 11 11 11 11 Grantapplications 4 2 1 1 BUDGETCOMMENTARY: Theprioryearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).The2016personnelservicesbudgetincludes afullstepincreaseanda3%(2%inJanuaryand1%inJuly)marketratewageincrease.This departmentleadsinsecuringgrantsfordevelopmentoftheBertramChainofLakesPark. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PLANNING&ZONING Actual Actual Actual Budget Projected Budget Change PersonnelServices 102,001$108,269$115,757$117,302$129,302$125,803$7.2% Supplies 174 143 16 200 200 200 0.0% OtherServices&Charges 61,454 74,341 104,307 85,818 112,818 92,020 7.2% CapitalOutlay --------- TOTALEXPENDITURES 163,629$182,753$220,080$203,320$242,320$218,023$7.2% 110 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. 111 MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Outcome/Effectiveness: Networkuptime 99%99%99%99% Numberofclosedrequests 322 348 385 370 450 Efficiency: Opentoclosedrequestsratio 99%99%99%100%100% WorkLoad: Numberofhelpdeskrequests 326 352 389 370 450 Numberofclients/users 60 56 70 102 103 NumberofPC,servers,and networkdevices 95 100 131 145 147 BUDGETCOMMENTARY: Thepersonnelservicesbudgetincludesafullstepincreaseanda3%cost-of-livingincrease.Theprior yeardecreaseinotherservicesandchargesreflectstheinitiationofanITServicesinternalservice fund,whichre-allocatesexpensestootherbenefittingactivities. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % ITServices Actual Actual Actual Budget Projected Budget Change PersonnelServices 29,464$36,002$33,223$35,405$25,514$-$-100.0% Supplies 18,828 13,958 ------- OtherServices&Charges 81,810 45,612 536 624 624 740 18.6% CapitalOutlay ---10,800 -10,800 0.0% TOTALEXPENDITURES 130,102$95,572$33,759$46,829$26,138$11,540$-75.4% 112 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 2012 2013 2014 2015 2016 Newsletterspublished 2 2 2 2 2 Utilityinsertspublished 2 2 2 2 2 Parkinsertspublished 4 4 4 4 4 Servicedeskdataentry 322 332 280 379 300 BUDGETCOMMENTARY: This Itemsbudgetedforcityhallactivityarecommonlysharedamongalldepartmentsoperatingout ofcityhall,aswellassomesuppliesusedbythecommunitycenter.Thedecreaseinotherservices andchargesreflectsthere-allocationofexpensesforITservicesandinsurances(property,liability andvehicle)tootherbudgetunits.The2016personnelservicesbudgetincludesafullstepincrease anda3%(2%inJanuaryand1%inJuly)marketratewageincrease.Otherbudgetitemsareexpected toremainclosetoprioryearlevels. 113 BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % CITYHALL Actual Actual Actual Budget Projected Budget Change PersonnelServices 56,346$111,633$114,071$112,284$115,742$119,117$6.1% Supplies 12,585 12,218 12,308 17,200 17,200 16,000 -7.0% OtherServices&Charges 169,836 92,842 67,495 74,565 69,565 74,606 0.1% CapitalOutlay --------- TOTALEXPENDITURES 238,767$216,693$193,874$204,049$202,507$209,723$2.8% 114 PRAIRIECENTERBUILDING DEPARTMENT:GeneralGovernment SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:41941 ACTIVITYSCOPE: Thecity-ownedPrairieCenterBuildingleasesspacetoitsFiberNetoperations.Further,theWright CountySheriff'sDepartmentoccupiesnon-rentpayingspaceinthebuilding.Thisactivityisforthe operationsofthefacility. OBJECTIVES: 1.Toprovideawellmaintainedbuilding. ISSUES: 1.Maintainfacilitywithcurrentstaffandavailablefunds. 2.Tenantretention. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Tenants 3 3 3 2 1 BUDGETCOMMENTARY: ThePrairieCenterBuildingwaspurchasedin2009toprovideFiberNetMonticellowithbusiness officespace.The2015budgetisbasedon2014projectedexpenditures.The2014increaseinother servicesandchargesreflectstheallocationofinsuranceexpenses(liability,propertyandvehicle).The 2016decreaseinotherservicesandchargesistheeffectfromlosingaprivatetenantandthe subsequentremovaloftheCenterfromthepropertytaxroll. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PRAIRIECENTERBLDG Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 519 452 114 1,000 1,000 1,000 0.0% OtherServices&Charges 14,576 14,903 14,295 18,080 14,480 13,120 -27.4% CapitalOutlay --------- TOTALEXPENDITURES 15,095$15,355$14,409$19,080$15,480$14,120$-26.0% 115 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 2012 2013 2014 2015 2016 Outcome/Effectiveness: Arrests 942 1004 822 800 800 Arreststocrimesratio 0.73 0.79 0.75 0.76 0.80 Efficiency: Hourscontracted 18,980 18,980 17,520 17,520 17,568 Callsperhourcontracted 0.320.320.370.350.34 Costsperworkloadunit $185.80 $184.66 $178.25 $179.51 $186.78 WorkLoad: Servicecalls,numberof 2,832 2,846 2,857 2,850 2,850 Trafficcalls,numberof 1,621 1,657 2,080 1,800 1,800 Vehiclecrashes,numberof 289 388 415 400 400 Crimes,numberof 1,2851,2671,0901,0501,000 *2015isanestimatebecausethecountyimplementedanewreportingsystemandthedataisnot readilyavailable. 116 BUDGETCOMMENTARY: Lawenforcementservicesarecontractedinfour-hourincrementsfromtheWrightCountySheriff’s Department.Pasthourlyratesareasfollow:2015-$64.50;2014-$62.50;2013-$60.50;2012- $59.75;2011-$59.00.Thehourlyratefor2016willbe$67.00.Thecitycontractedfor17,520hours in2014and2015,whichis4(52to48hours)perdaylowerthanthe18,980hourscontractedforin 2013.Aleapyear,2016includes$3,216fortheextraday. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % LAWENFORCEMENT Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 1,187,382 1,190,441 1,145,247 1,175,815 1,175,815 1,222,627 4.0% CapitalOutlay --------- TOTALEXPENDITURES 1,187,382$1,190,441$1,145,247$1,175,815$1,175,815$1,222,627$4.0% 117 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 2012 2013 2014 2015 2015 2016 % FIRE Actual Actual Actual Budget Projected Budget Change PersonnelServices 107,163$118,073$142,331$120,065$134,065$149,674$24.7% Supplies 41,275 42,317 50,291 35,400 47,400 49,650 40.3% OtherServices&Charges 59,340 61,751 72,857 69,246 83,246 93,199 34.6% CapitalOutlay --41,300 41,300 41,300 41,300 0.0% TOTALEXPENDITURES 207,778$222,141$306,779$266,011$306,011$333,823$25.5% 118 MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Outcome/Effectiveness: Respondentstofirecalls: City 2,270 2,887 2,918 2,552 2,550 MonticelloTownship 1,000 1,121 1,318 1,273 1,300 SilverCreekTownship 278 428 509 674 650 Otsego 271 15 --- MutualAid 803 463 486 758 750 Drills&Maintenance 1,859 1,596 2,888 2,687 2,650 Total 6,481 6,510 8,119 7,944 7,900 Efficiency: Averagerespondentspercall City 15 16 15 15 14 MonticelloTownship 19 19 20 21 22 SilverCreekTownship 15 16 18 20 22 Otsego 25 ------------ MutualAid 37 26 29 28 38 Drills&Maintenance 37 31 49 40 44 Total 21 19 22 23 23 WorkLoad: Numberoffirecalls: City 155 183 190 165 180 MonticelloTownship 53 60 67 60 60 SilverCreekTownship 18 27 29 33 30 Otsego 11 ---- MutualAid 22 18 17 27 20 Drills&Maintenance 50 52 59 67 60 Total 309 340 362 352 350 Firefighters,numberof 30 30 30 30 30 119 FIRERELIEF DEPARTMENT:PublicSafety SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:42202 ACTIVITYSCOPE: Providingaretirementbenefittopaid-on-callvolunteers,thefirereliefactivityisspecifically designedtotrackthecity’scontributiontotheMonticelloFireReliefAssociation. OBJECTIVES: 1.ProvidepensionfundsfortheMonticelloFireReliefAssociation. ISSUES: 1.PensionassetsgreaterthanPensionliabilities. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Pensionassets 1,046,960$1,114,949$1,053,739$1,026,460$1,150,000$ Pensionliabilities 1,031,472$965,425$924,403$1,017,135$1,000,000$ Assets-liabilitiesratio 1.02 1.15 1.14 1.01 1.15 Pensionperserviceyear $2,750 $2,850 $3,100 $3,300 $3,100 Firestateaid $74,222 $109,594 $108,186 $120,026 $120,000 Stateaidperemployee $2,651 $3,914 $4,007 $4,287 $40,000 Activefirefighters 28 28 27 28 30 Deferredfirefighters 4 4 4 3 3 BUDGETCOMMENTARY: Thefirereliefbudgetconsistisbasicallyaconduitfordistributionofstatefireaidtothepensionfund forvolunteerfirefighters.Stateaidrevenueequalsthecontributiontothereliefassociation. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % FIRERELIEF Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 74,221 109,594 108,186 80,000 80,000 80,000 0.0% CapitalOutlay --------- TOTALEXPENDITURES 74,221$109,594$108,186$80,000$80,000$80,000$0.0% 120 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 2012 2013 2014 2015 2016 Outcome/Effectiveness: Valueofpermitsissued 12,802,549$15,821,223$19,714,895$36,242,742$20,000,000$ ValueofpermitsperFTE 4,267,516$5,273,741$6,571,632$10,355,069$5,000,000$ Efficiency: DepartmentalFTEs 3 3 3 3.5 4 RentalinspectionsperFTE(2)600 671 692 697 850 PermitsperFTE 219 220 240 256 214 WorkLoad: Buildingpermitsissued 657 659 721 768 750 Nuisancenoticesissued 250 161 156 110 100 121 BUDGETCOMMENTARY: Theprioryearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).The2016personnelservicesbudgetincludes afullstepincreaseanda3%(2%inJanuaryand1%inJuly)marketratewageincreaseandthe additionofonebuildinginspector.Otherbudgetitemsareexpectedtoremainclosetoprioryear levels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % BUILDINGINSPECTIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 221,596$229,817$238,627$269,752$269,752$334,776$24.1% Supplies 2,817 4,659 2,942 5,900 5,900 5,800 -1.7% OtherServices&Charges 23,963 16,531 24,976 28,800 28,800 29,087 1.0% CapitalOutlay --------- TOTALEXPENDITURES 248,376$251,007$266,545$304,452$304,452$369,663$21.4% 122 CIVILDEFENSE DEPARTMENT:CivilDefense SUPERVISOR:ChiefBuildingOfficial FUND#:101 ACTIVITY#:42501 ACTIVITYSCOPE: Thecivildefensedepartmentprovidesconstantdefensecoverageforallweatherandpowerplant relatedemergencysituationswithinthecity. OBJECTIVES: 1.Implementcityhall,communitycenter,andNationalGuardemergencypreparedness. ISSUES: 1.Preparedness-littleornowarningwhenanemergencyoccurs. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Meetingshoursperyear 156 145 60 72 72 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 2012 2013 2014 2015 2015 2016 % CIVILDEFENSE Actual Actual Actual Budget Projected Budget Change PersonnelServices 1,991$1,221$-$1,612$1,612$1,612$0.0% Supplies -7,246 490 100 100 100 0.0% OtherServices&Charges 728 1,240 1,171 2,144 1,644 2,218 3.5% CapitalOutlay --------- TOTALEXPENDITURES 2,719$9,707$1,661$3,856$3,356$3,930$1.9% 123 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. 2.Allocationsofservicecostsbasedonusagebycustomers(townshipandcities). MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Strayanimalreports 496 535 500 Barkingdogreports 190 173 175 Lost/foundreports 1,670 1,568 1,600 Feralcattrapping 261 301 275 Unsanitaryconditionreports 201 189 195 Abuse/neglectreports 171 191 195 Impounds 556 572 570 Dogbitereports 88 72 75 Animalcontrolfees $29,272 $29,764 $35,169 $38,756 $35,000 BUDGETCOMMENTARY: Theprofessionalservicecontracttohandleallanimalcontrolissuesisthelargestbudgeteditemat $39,015.Theremainingbudgetitemsareforsuppliesandotherservicechargesrelatedtooperating theanimalcontrolfacility. 124 BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % ANIMALCONTROL Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 3,795 3,362 3,273 3,300 2,300 3,300 0.0% OtherServices&Charges 45,799 44,064 46,166 47,424 48,009 48,048 1.3% CapitalOutlay --------- TOTALEXPENDITURES 49,594$47,426$49,439$50,724$50,309$51,348$1.2% 125 NATIONALGUARD DEPARTMENT:NationalGuard SUPERVISOR:ProjectCoordinator FUND#:101 ACTIVITY#:42701 ACTIVITYSCOPE: TheNationalGuardfacilityishousedintheMonticelloCommunityCentercomplex.Thecitywill maintainthefacilityinperpetuityinreturnforaone-timepaymentin1998thathelpedfund constructionofthecommunitycenter.TheGuardprovidesnodirectservicestothecity. OBJECTIVES: 1.Tomaintainaclean,modernfacilityforusebytheNationalGuard. ISSUES: 1.TherearenocurrentissuestomaintainingtheNationalGuardfacility. MEASURABLEWORKLOADDATA: Measurement 2010 2011 2012 2013 2014 Notapplicable BUDGETCOMMENTARY: TheNationalGuardoperatesasecuritydivisionwithintheMonticelloCommunityCentercomplex. ThecitymaintainstheGuard’ssitewithinthecomplex.Thebudgetforthisactivityisrelativelystatic. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % NATIONALGUARD Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 187 -204 300 300 300 0.0% OtherServices&Charges 14,100 14,517 13,857 16,750 15,750 15,750 -6.0% CapitalOutlay --------- TOTALEXPENDITURES 14,287$14,517$14,061$17,050$16,050$16,050$-5.9% 126 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 2012 2013 2014 2015 2016 Budgetunits 15 15 15 14 14 Employeessupervised-FT 19 19 19 19 20 127 BUDGETCOMMENTARY: The2013decreaseinpersonnelservicesreflectsthenon-replacementofthepublicworksdirector. Theincreaseinotherservicesandchargesreflectsthere-allocationofinsurance(property,liability andvehicle)expenses.The2016personnelservicesbudgetincludesafullstepincreaseanda3%(2% inJanuaryand1%inJuly)marketratewageincreaseandtheadditionofaPublicWorksdirector.The directorpositionisspreadoverthreebudgets:GeneralFund-60%,SewageFund–20%,WaterFund 20%.TheGeneralFundshareofthetotalforthepositionis$72,000.Whileotherbudgetitemshave largepercentageincreases,thechangeindollaramountsarerelativelyinsignificant. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-ADMINISTRATION Actual Actual Actual Budget Projected Budget Change PersonnelServices 158,837$97,647$96,090$91,277$91,277$163,985$79.7% Supplies 3,514 2,992 4,337 4,050 4,050 6,150 51.9% OtherServices&Charges 14,106 13,243 21,724 28,253 28,253 24,636 -12.8% CapitalOutlay --------- TOTALEXPENDITURES 176,457$113,882$122,151$123,580$123,580$194,771$57.6% 128 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. 129 MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Servicerequests 10 10 10 10 10 On-lineservicerequests 10 7 5 11 20 Activeimprovementprojects 10 10 10 10 10 Drivewaypermitsissued 3 2 1 3 3 Right-of-waypermitsissued 127 131 116 101 120 Developmentapplications 10 10 10 10 Gradingpermitsissued 10 3 6 2 5 BUDGETCOMMENTARY: Theengineeringactivitypredominantlyconsistsofengineeringandotherprofessionalservicefees. Theseexpendituresconsistofbothreimbursableandnon-reimbursableexpenditures.For2014,the engineeringbudgetdecreasedsubstantiallywiththeeliminationoftwopositions.Consequently, professionalservicesincreasedtooffsetmuchofsavingsrealizedbyeliminationofthosepositions. The2016budgetprovidesforcontinuedimprovementsanddevelopmentofthecity'sGISsystem. Finally,the2016budgetincludesmoneyforanI-94interchangestudy. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-ENGINEERING Actual Actual Actual Budget Projected Budget Change PersonnelServices 152,714$112,148$38,764$389$389$100$-74.3% Supplies 529 899 373 150 150 150 0.0% OtherServices&Charges 47,044 110,981 156,704 168,969 156,169 159,808 -5.4% CapitalOutlay --------- TOTALEXPENDITURES 200,287$224,028$195,841$169,508$156,708$160,058$-5.6% 130 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. 131 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: The2016personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%in July)marketratewageincreaseforareplacementstartingatthebeginningofscalefortheposition. Theprioryearincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforIT servicesandinsurances(property,liabilityandvehicle).Suppliesdeclinedwithactivity.Otherbudget itemsareexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-INSPECTIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 57,701$43,329$23,021$76,085$70,254$67,708$-11.0% Supplies 4,194 1,908 2,416 5,900 5,900 5,100 -13.6% OtherServices&Charges 2,932 9,641 11,430 14,967 14,967 16,001 6.9% CapitalOutlay --------- TOTALEXPENDITURES 64,827$54,878$36,867$96,952$91,121$88,809$-8.4% 132 PUBLICWORKS–STREETS,ALLEYS&PARKINGLOTS DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43120 ACTIVITYSCOPE: Themainresponsibilityofthestreetsandalleysactivityistoperformthenecessarytaskstoreduce thedepreciationofthecitystreetsandupholddesirablestandardsofappearance,serviceability,and safety.Thisincludesupkeepsuchasstreetsweeping,repairofroadwaysurfaceareas,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 2012 2013 2014 2015 2016 Poundsofcracksealer 23,100 23,100 23,282 29,580 35,000 Sq.yardsofchipsealing 78,500 78,500 82,429 102,204 110,000 Milesofstreets 68.0 68.0 68.0 69.0 69.0 Tonsofblacktoppatching 193 193 190 293 300 133 BUDGETCOMMENTARY: Partoftheincreaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservices andinsurances(property,liabilityandvehicle).Contractedstreetrepairsandmaintenance,under otherservicesandcharges,increased$15,000to$180,000for2016.Therenewedemphasison streetmaintenancebeganin2014.The2016personnelservicesbudgetincludesafullstepincrease anda3%(2%inJanuaryand1%inJuly)marketratewageincrease.Increasesinstreetmaintenance suppliesandsmalltoolsandequipmentcontributetothe2016jumpinsupplies.Otherbudgetitems areexpectedtoremainclosetoprioryearlevels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-STREETS&ALLEYS Actual Actual Actual Budget Projected Budget Change PersonnelServices $398,162 $372,892 $350,888 $442,447 $442,447 $451,874 2.1% Supplies 152,142 168,132 189,295 186,050 186,050 219,050 17.7% OtherServices&Charges 109,434 119,052 164,060 219,813 213,813 230,438 4.8% CapitalOutlay -31,935 35,200 37,500 37,500 75,600 101.6% TOTALEXPENDITURES 659,738$692,011$739,443$885,810$879,810$976,962$10.3% 134 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 2012 2013 2014 2015 2016 Inchesofsnow 29 29 79 40 50 Plowingevents,numberof 7 7 18 14 16 Tonsofsaltused 325 325 385 534 525 Tonsofsandused 370 370 600 285 300 BUDGETCOMMENTARY: The2016personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%in July)marketratewageincrease.Thecityplanstoincreasesalt/sandsuppliesin2016to$64,000from $55,000.Additionally,2016suppliesincreasewithpurchaseofnon-capitalequipmentfor$10,000. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-ICE&SNOW Actual Actual Actual Budget Projected Budget Change PersonnelServices 76,146$128,679$224,328$144,987$144,987$155,618$7.3% Supplies 52,804 79,182 81,174 103,000 103,000 125,900 22.2% OtherServices&Charges 4,243 2,691 2,885 2,697 2,697 2,762 2.4% CapitalOutlay --------- TOTALEXPENDITURES 133,193$210,552$308,387$250,684$250,684$284,280$13.4% 135 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 2012 2013 2014 2015 2016 Serviceorders 86 85 85 88 90 Serviceorderhours 371 274 351 362 369 Hoursperserviceorder 4.3 3.2 4.1 4.1 4.1 Totalserviceordercosts $14,662 $16,204 $21,576 $22,337 $22,844 Servicecostperorder $170.49 $190.64 $253.84 $253.83 $253.82 Repairorders 82 60 52 87 95 Repairhours 243 156 205 252 272 Hoursperrepairorder 3.0 2.6 3.9 2.9 2.9 Totalrepairordercosts $22,755 $29,818 $28,719 $37,250 $39,250 Repaircostsperorder $277.50 $496.97 $552.29 $428.16 $413.16 136 BUDGETCOMMENTARY: The2016personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%in July)marketratewageincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryear levels.Thecityhasawide-varietyoftalentinthePublicWorksDepartment.Mostarecapableof assistingatruecraftsman,thecity’shighly-skilledchiefmechanic. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-SHOP&GARAGE Actual Actual Actual Budget Projected Budget Change PersonnelServices 104,605$98,445$93,377$91,162$91,162$96,475$5.8% Supplies 39,300 44,180 29,747 44,100 50,100 46,000 4.3% OtherServices&Charges 75,741 44,116 54,520 59,548 58,048 61,626 3.5% CapitalOutlay --------- TOTALEXPENDITURES 219,646$186,741$177,644$194,810$199,310$204,101$4.8% 137 PUBLICWORKS–STORMWATER DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer FUND#:101 ACTIVITY#:43130 ACTIVITYSCOPE: Stormwaterisresponsibleforexpendituresrelatedtothemaintenanceofthecity'sstormwater system.Thisactivityincludesinspecting,cleaningandrepairingallstormwatertrunklines,ditches, andponds. OBJECTIVES: 1.Monitor,repair,andcleanstormwatertrunklines,laterals,structures,ditches,holding pondsandstructuralpollutioncontroldevices. ISSUES: 1.Continueddeteriorationofstormwatersystem,withoutproperfundingforrepairs, replacementorimprovements. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 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: The2016budgetprovidesforthegeneralmaintenanceofthecity'sstormwatersystem.Cleaningand restorationofholdingponds,oncepaidfromtheStormWaterAccessFund,willbemadefromthis GeneralFundbudgetunitfor2015andbeyond.Theincreaseinotherservicesandchargesreflects theadditionof$40,000forannualrepairsandmaintenance.Priorto2015,suchexpenditureswere madefromtheStormwaterAccessFund.The2016personnelservicesbudgetincludesafullstep increaseanda3%(2%inJanuaryand1%inJuly)marketratewageincrease.Otherbudgetitemsare expectedtoremainclosetoprioryearlevels. 138 BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-STORMWATER Actual Actual Actual Budget Projected Budget Change PersonnelServices 18,451$9,331$9,817$22,518$22,518$22,471$-0.2% Supplies 2,068 1,466 5,752 7,000 6,500 7,000 0.0% OtherServices&Charges 30,949 1,267 1,273 43,650 43,650 43,650 0.0% CapitalOutlay --------- TOTALEXPENDITURES 51,468$12,064$16,842$73,168$72,668$73,121$-0.1% 139 PUBLICWORKS–STREETLIGHTING DEPARTMENT:PublicWorks SUPERVISOR:StreetSuperintendent FUND#:101 ACTIVITY#:43160 ACTIVITYSCOPE: StreetIightingmaintainsthenewandexistingstreetlightingwithinthecity.Thisincludesmaintaining thebulbsandfixturesoncetheyhavebeeninstalled,aswellastheelectricityusedforthelighting. OBJECTIVES: 1.WorkwithMNDOTtoaddbatteryback-uptosignalsonTH25. 2.Draftanewstreetlightingpolicy. ISSUES: 1.Increasingelectricitycosts. 2.Verifylampandfixturesmaintenancebyutilitycompanies. 3.Maintenanceandupgradesonagingsignalsystemsandstreetlights. 4.LackofassistancefromWrightCountyandMNDOT. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Streetlightsmaintained 150 150 150 175 185 Streetscapelights 50 50 60 60 60 BUDGETCOMMENTARY: Electricityforthestreetlightsisthelargestexpenditureat$178,000.Otherservicesandcharges include$30,000forrepaintingtrafficsignals. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PW-STREETLIGHTING Actual Actual Actual Budget Projected Budget Change PersonnelServices 3,793$2,795$4,354$-$-$-$--- Supplies 2,349 3,195 2,532 10,000 10,000 12,000 20.0% OtherServices&Charges 190,637 200,015 188,809 219,500 217,500 251,900 14.8% CapitalOutlay --------- TOTALEXPENDITURES 196,779$206,005$195,695$229,500$227,500$263,900$15.0% 140 PUBLICWORKS–REFUSECOLLECTION DEPARTMENT:PublicWorks SUPERVISOR:RefuseCollection FUND#:101 ACTIVITY#:43230 ACTIVITYSCOPE: Thecitycontractswithaprivatecompanyforresidentialrefusecollectionandrecyclingservices. OBJECTIVES: 1.Researchexpandingcityhaulerscontractedservicepricestobusinessanddeterminethe percentageofparticipationtoachieveadesirablerate. ISSUES: 1.Wearandtearoncitystreets. 2.Increasingrecyclingefficiencyandeffectiveness. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Residentialrefusecollections 52 52 52 52 52 Residentialrecyclingcollections 26 26 26 26 26 Residentialcontainerbase 3,745 3,736 3,772 3,759 3,800 Additionalcontainers 453 479 603 605 600 Recyclingcontainers 4,206 4,220 4,277 4,349 4,420 BUDGETCOMMENTARY: Nearlytheentirebudgetisbasedonthecity’sjustrenewedfive-yearcontractwithitsrefusehauler, whichexpiresontheMay31,2020.Thecontractextensionraisedratesby14%forlastseven monthsof2015. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % REFUSECOLLECTION Actual Actual Actual Budget Projected Budget Change PersonnelServices 719$-$463$1,037$1,037$1,037$0.0% Supplies 132 197 184 100 100 200 100.0% OtherServices&Charges 499,186 505,799 517,308 587,154 572,460 613,200 4.4% CapitalOutlay --------- TOTALEXPENDITURES 500,037$505,996$517,955$588,291$573,597$614,437$4.4% 141 TRANSIT DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45178 ACTIVITYSCOPE: Dial-a-ridebusservice,providedbycontractthroughHoglundBusCompany,istheonlytransit activitysubsidizedbythecity. OBJECTIVES: 1.Researchotherlessexpensivealternativestoexistingprovider. 2.Evaluateserviceenhancementswithinthecontextofothertransportationoptions, includingtheNorthstarcommuterrailsystem. 3.ReviewinvolvementinstudyforI-94commuterserviceoptions. ISSUES: 1.RelativelylowridershipforacitythesizeofMonticello. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Adultrides 1,435 1,8792,0004,9184,900 60+rides 3,159 3,001 3,000 2,331 2,400 Disable/wheelchairrides 636 780 600 247 300 Studentrides 1,0551,481 1,500 2,587 2,500 BUDGETCOMMENTARY: Thecitywasforcedtochangeitstransitservicesproviderin2014.Thenewproviderchargesaflat $40,000regardlessofridership. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % TRANSIT Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --10,000 40,000 40,000 40,000 0.0% CapitalOutlay --------- TOTALEXPENDITURES -$-$10,000$40,000$40,000$40,000$0.0% 142 SENIORCENTER DEPARTMENT:RecreationandCulture SUPERVISOR:CityAdministrator FUND#:101 ACTIVITY#:45175 ACTIVITYSCOPE: TheseniorcenterfacilityishousedintheMonticelloCommunityCentercomplex.Thefacilityis maintainedbycity,butseniorcentermanagementisprovidedbyanoutsideentity. OBJECTIVES: 1.Maintainaclean,modernfacilityforusebyMonticello’sseniorcitizens. 2.Providerecreationalactivitiestoimprovementmentalandphysicalhealth. 3.Engageseniorcitizenparticipationinothercommunitycenteractivities. 4.Encouragegreatersocialparticipationbyofferingdiscountedlunches. ISSUES: 1.Declineinrevenuefromsourcesotherthanthecity. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Outcomes/Effectiveness Volunteershours 8,058 7,945 8,022 8,094 8,100 Dinnersserved 5,347 4,223 1,988 2,873 2,400 Efficiency: Duplicatedparticipants peractivity 19 19 19 19 20 Unduplicatedparticipants peractivity 166 165 170 170 182 WorkLoad: Unduplicatedparticipants 2,123 2,164 2,214 2,298 2,250 Duplicatedparticipants 18,266 18,522 19,325 20,098 20,000 Receivedphonecalls 4,7274,7904,4594,5074,500 Activitiesoffered 110 112 114 118 110 143 BUDGETCOMMENTARY: Theseniorcenterrentsspacewithinthecommunitycentercomplex.Thecitymaintainsandinsures theseniorcenter.Additionally,thecitygivesanannualcontributiontothegroupmanagingthe seniorcenter.The2016adoptedcontributionis$56,760,which$1,760greaterthan2015.Thecity increasedtheinternalrentpaidtothecommunitycenterby$5,000(from$30,000to$35,000)for thespaceoccupiedbytheseniorcenterin2015.Theincreasedrentoffsetsaone-time,$5,000 contributiontotheseniorcenterforfloorreplacementin2014. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % SENIORCENTER Actual Actual Actual Budget Projected Budget Change PersonnelServices 1,285$796$1,442$547$547$547$0.0% Supplies --510 ------ OtherServices&Charges 87,156 89,423 95,595 99,375 99,375 101,125 1.8% CapitalOutlay --------- TOTALEXPENDITURES 88,441$90,219$97,547$99,922$99,922$101,672$1.8% 144 PARKOPERATIONS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45201 ACTIVITYSCOPE: Theparkoperationsactivitymaintainstheparksandtrailswithinthecity.Thisincludesmaintainingand improvingplaygroundandpicnicfacilities,fertilizingandmowingofgrass,maintainingathleticfields, floodingandmaintenanceofoutdooricerinks,snowandiceremoval,andtreepreservationwithinthe parkssystem. OBJECTIVES: 1.Continuepathwaysmaintenance. 2.Improveefficienciesthroughuseofthecity’sGIS. 3.ProgressinimplementingplanforaregionalparkoncurrentYMCAland. ISSUES: 1.Increaseinmaintenancecostswithacquisitionofmoreparkland. 2.Coordinationwithotherentitiesregardingparkuseanddesign. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Parklandacresmaintained 180 180 180 180 185 Trailmilesmaintained 16.516.5 16.5 17.0 17.5 Parkeventsheld 150 150 150 150 150 Winterskatingdays 125 125 125 128 125 BUDGETCOMMENTARY: Theparksbudgetconsistsofexpendituresneededtomaintaincityparksandtrails.In2013,capital outlayreflectstheacquisitionofmowersandothercapitalequipmentthroughtheCentral Equipmentinternalservicefund.AdditionalCentralEquipmentFundpurchasesareplannedfor2016. In2015,financingforannualpathwaysimprovementswasshiftedtoparkoperationsfromthePark andPathwayDedicationFund.The2014increaseinotherservicesandchargesreflectsthere- allocationofexpensesforITservicesandinsurances(property,liabilityandvehicle).The2016 personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%inJuly) marketratewageincrease.Otherbudgetitemsareexpectedtoremainclosetoprioryearlevels. 145 BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PARK-OPERATIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 360,575$361,526$351,322$453,759$453,759$467,482$3.0% Supplies 116,861 110,566 111,436 119,725 119,725 126,975 6.1% OtherServices&Charges 56,101 73,293 75,481 128,841 128,841 117,340 -8.9% CapitalOutlay -27,600 32,400 101,000 93,000 113,200 12.1% TOTALEXPENDITURES 533,537$572,985$570,639$803,325$795,325$824,997$2.7% 146 PARKBALLFIELDS DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:101 ACTIVITY#:45203 ACTIVITYSCOPE: Theparkballfieldsactivitypreparesandmaintainscityathleticfields,includingtheNSPBallfield. OBJECTIVES: 1.Prepareandmaintaincityathleticfields. 2.Improvethestructuresattheballfields. 3.Enhanceplayerandvisitorexperience. ISSUES: 1.Budgetconstraints. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Ballgamesplayed,numberof 600 600600610615 Fieldsmaintained 4 4 4 4 4 Numberoftimesmowed 50 50 50 50 50 BUDGETCOMMENTARY: The2016budgetreflectpastexpenditurelevelsandissimilartothe2015budgetformaintainingthe fieldsandconcessionactivitiesplusincreasesparkactivities.Otherservicesandchargesinclude itemsthatdonotmeetthecapitalizationthreshold. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % PARK-BALLFIELDS Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 5,744 8,829 10,531 15,850 15,700 15,800 -0.3% OtherServices&Charges 23,675 16,688 7,618 11,950 11,950 11,500 -3.8% CapitalOutlay ---5,000 ---100.0% TOTALEXPENDITURES 29,419$25,517$18,149$32,800$27,650$27,300$-16.8% 147 SHADETREE DEPARTMENT:RecreationandCulture SUPERVISOR:ParkSuperintendent FUND#:101 ACTIVITY#:46102 ACTIVITYSCOPE: ShadeTreesupportsplantingandmaintainingtreesandshrubberywithinthecitylimits.Thisactivity providesforregulating,developing,planting,maintaining,andremovingoftreesinanystreet,park, right-of-wayorotherpublicplace.Shadetreesaidthelargergoalofsoilconservation,climate moderation,airquality,noise,etc.Thebudgetprovidesthemechanismsforfundingauniform programforthepurposeofbeautifyingthecommunityasawhole,andincreasingpropertyvalues. OBJECTIVES: 1.Providetreesforspringtreeplanting. 2.ContinuewithShadeTreeDiseaseControlProgram. 3.ReplacedeadanddiseasedtreesthroughouttheCityandParks. 4.Continuechippingprogram. 5.Continueeducationprogram. 6.Beginaboulevardtreeplantingprogram. ISSUES: 1.Stressontreescausedbyweatheranddiseases. 2.Fundingavailability. 3.Chipperreplacement. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Treesplanted 450 450450257300 Treesremoved 200200 200 110 100 Studentsinprograms 425425 425 500 500 148 BUDGETCOMMENTARY: AportionofthetotaltimeofparkemployeesisallocatedtotheShadeTreeactivity.The2016 personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%inJuly) marketratewageadjustmentincrease.Otherbudgetitemsareexpectedtoremainclosetoprior yearlevels. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % SHADETREE Actual Actual Actual Budget Projected Budget Change PersonnelServices 32,228$41,621$48,099$36,599$36,599$41,207$12.6% Supplies 15,931 9,260 19,907 16,125 16,125 16,125 0.0% OtherServices&Charges 4,824 2,594 885 5,904 13,404 6,195 4.9% CapitalOutlay --------- TOTALEXPENDITURES 52,983$53,475$68,891$58,628$66,128$63,527$8.4% 149 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 2012 2013 2014 2015 2016 Checkedoutitems 237,938 236,220199,182195,235195,000 Numberofrequestsplaced 11,572 11,481 11,168 9,792 10,000 Summerreadingparticipants 891 840 808 823 800 Patronsusingwireless 2,309 2,270 3,021 3,582 3,500 Patronsusinginternetstations 9,809 9,193 9,002 8,396 8,500 Programsoffered 149 173 169 167 170 Programparticipantsenrolled 3,7613,773 3,788 3,919 4,000 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloLibrary.ThecitycontractswithGreatRiverRegionalLibrary Systemforallinformationsourcesandoperations.Thecityownsandmaintainsthebuildingthe libraryishousedinandfundssomeyouthprograms.The2015budgetissimilartothe2014budget andpastexpenditures.Bystatute,thecitymustannuallyexpendatleast$34,927forthelibrary. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % LIBRARY Actual Actual Actual Budget Projected Budget Change PersonnelServices 5,819$8,259$4,618$9,137$9,137$9,137$0.0% Supplies 2,503 2,001 2,583 1,900 1,900 1,900 0.0% OtherServices&Charges 21,393 25,135 29,563 28,925 28,925 29,489 1.9% CapitalOutlay --------- TOTALEXPENDITURES 29,715$35,395$36,764$39,962$39,962$40,526$1.4% 150 INSURANCE DEPARTMENT:Other SUPERVISOR:FinanceDirector FUND#:101 ACTIVITY#:49240 ACTIVITYSCOPE: ThisactivityaccountsforavarietyofundistributedGeneralFundinsurancescosts. OBJECTIVES: 1.Toaccuratelydistributeinsurancecoststoallactivitiesbyfund. ISSUES: 1.Purchasingtheproperlevelofinsurancecoveragewiththeappropriatedeductiblesatthe lowestpossiblecosts. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: In2014,otherservicesandchargesdecreasedsignificantlyfromtheredistributionofinsurancecosts throughoutthevariousbudgetunitsintheGeneralFund.Aneffectivesafetyprogramadministered bythehumanresourcemanagerhasresultedinadeclineofworkerscompensationinsurancecosts. Additionally,liabilityinsurancedecreasedslightlyandpropertyinsuranceincreasedslightly. BUDGET: GENERALFUND 2012 2013 2014 2015 2015 2016 % INSURANCE Actual Actual Actual Budget Projected Budget Change PersonnelServices 69,712$53,568$-$-$-$-$--- Supplies --------- OtherServices&Charges 164,005 74,142 12,584 7,329 7,329 8,021 9.4% CapitalOutlay --------- TOTALEXPENDITURES 233,717$127,710$12,584$7,329$7,329$8,021$9.4% 151 Thispageintentionallyleftblank 152 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 SPECIAL REVENUE FUNDS SPECIALREVENUEFUNDS-SUMMARY DESCRIPTION Thecitycurrentlyhasfouractivespecialrevenuefunds.Specialrevenuefundsareusedtoaccountforthe proceedsofspecificrevenuesourcesthatarerestricted,committedorassignedtoexpendituresforspecific purposesotherthandebtserviceorcapitalprojects.UnliketheGeneralFund,thebudgetsofspecialrevenue fundsdonotalwaysbalance--revenuesequalexpenditures.Specialrevenuefundsusethemodifiedaccrual basisofaccountingforbothfinancialreportingandbudgetingpurposes. BUDGETISSUES Eachspecialrevenuefundhasspecificchallengesthatwillbeaddressedinthenarrativeforeachfund. BUDGETSUMMARY SPECIALREVENUEFUNDS 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 1,197,239$1,181,335$1,388,404$1,363,000$1,363,000$644,000$-52.8% TaxIncrements 1,052,110 992,339 838,000 726,215 729,577 677,244 -6.7% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,125,968 1,292,276 1,350,290 1,416,100 1,427,400 1,413,110 -0.2% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 396,677 123,368 398,846 304,918 294,510 193,682 -36.5% OperatingTransfers 850,000 267,000 143,000 94,900 94,900 --100.0% DebtProceeds --------- TOTALREVENUES 4,621,994$3,856,318$4,118,540$3,905,133$3,909,387$2,928,036$-25.0% EXPENDITURES PersonnelServices 943,772$975,181$972,801$1,018,942$1,018,942$1,159,115$13.8% Supplies 174,721 278,728 183,038 262,171 250,771 202,428 -22.8% OtherServices&Charges 592,105 495,870 1,181,247 606,988 605,558 878,772 44.8% CapitalOutlay 2,096,072 785,017 487,306 428,786 428,786 253,237 -40.9% OperatingTransfers 1,589,264 1,654,804 1,258,353 1,276,900 1,005,000 200,000 -84.3% TOTALEXPENDITURES 5,395,934$4,189,600$4,082,745$3,593,787$3,309,057$2,693,552$-25.0% FUNDBALANCE-JANUARY1 $9,500,405 8,726,465$8,393,183$8,428,978$8,428,978$9,029,308$ Excess(Deficiency)of RevenuesoverExpenditures (773,940)(333,282)35,795 311,346 600,330 234,484 FUNDBALANCE-DECEMBER31 8,726,465$8,393,183$8,428,978$8,740,324$9,029,308$9,263,792$ 153 ECONOMICDEVELOPMENTAUTHORITYFUND DEPARTMENT:EconomicDevelopment SUPERVISOR:CommunityDevelopmentDirector FUND#:212 ACTIVITY#:46301 ACTIVITYSCOPE: TheMonticelloEconomicDevelopmentAuthority(EDA)isresponsiblefortheon-going redevelopmenteffortswithinthecity.Thisconsistsofhousingandbusinesses,includingallrelated publicimprovementsandlandacquisitions.Theseprogramsareadministered,basedondirectionof theEDAcommittee,andbytheDirectorofEconomicDevelopment.Inaddition,alltaxincrement financingdistrictsareinitiatedandadministeredbytheEDA.Therearecurrently11activetax incrementdistricts.TheEDAalsoadministersloanstocitybusinesses,basedonlocal,state,and federalcriteria.Theseloansaredoneonthepremisethatthebusinesswillgeneratehigherpaying jobsinthecommunity. 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. 154 MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Taxincrementscollected 1,052,110$992,339$728,618$729,577$677,244$ Loansoutstanding 3 2 1 0 0 ActiveTIFdistricts 13 12 12 10 10 BUDGETCOMMENTARY: ThisbudgetrepresentstheMonticelloEconomicDevelopmentAuthorityprogramsandgeneral administrationactivities.Thedetailofeachindividualtaxincrementfinancingdistrictisincludedin theappendixofthisdocument.ThemainrevenuesourcefortheEDAFundistaxincrementsfrom thevariousdistricts.UnderSection469.033,subd.6,oftheHRAAct,thecitylevied$280,000 specialbenefittaxforcollectionin2016.Thislevyisagainstalltaxablerealpropertywithinthe cityandwillonlysupportredevelopmentactivitieswithinthecitylimits.Thespecialbenefitlevy islimitedto.0185%ofthetaxablemarketvalue.Expendituresincludeadministrativecosts,pay-as- you-gopaymentstovariousdevelopmentprojectsandatransfertodebtservicefundsforitsshare ofthe2005(refundedin2011)improvementbond,whichfinancedaninterchangeprojecttax incrementdistrict1-34.ThefuturedeclineintaxincrementsistheresultofTIFdistrict decertificationorindividualparceldecertification. BUDGET: EDAFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$280,000$--- TaxIncrements 1,052,110 992,339 838,000 726,215 729,577 677,244 -6.7% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 293,157 113,821 329,583 225,360 225,360 139,466 -38.1% OperatingTransfers -92,000 93,000 94,900 94,900 --100.0% TOTALREVENUES 1,345,267$1,198,160$1,260,583$1,046,475$1,049,837$1,096,710$4.8% EXPENDITURES PersonnelServices 13,906$3,116$5,932$12,804$12,804$94,869$640.9% Supplies 1,170 -36 ------ OtherServices&Charges 214,618 114,190 752,594 120,624 120,624 409,120 239.2% CapitalOutlay 433,406 707,552 487,306 349,786 349,786 183,237 -47.6% OperatingTransfers 699,264 779,804 218,353 271,900 -200,000 -26.4% TOTALEXPENDITURES 1,362,364$1,604,662$1,464,221$755,114$483,214$887,226$17.5% FUNDBALANCE-JANUARY1 7,478,651$7,461,554$7,055,052$6,851,414$6,851,414$7,418,037$ Excess(Deficiency)of RevenuesoverExpenditures (17,097)(406,502)(203,638)291,361 566,623 209,484 FUNDBALANCE-DECEMBER31 7,461,554$7,055,052$6,851,414$7,142,775$7,418,037$7,627,521$ 155 CEMETERYFUND DEPARTMENT:RecreationandCulture SUPERVISOR:ParksSuperintendent FUND#:651 ACTIVITY#:49010 ACTIVITYSCOPE: TheCemeteryFundsustainsitselfwithrevenuesfromplotsalesandfromservices,suchas excavations,stakingformonuments,memorialprograms,andperpetualcare.Thecitymaintains twocemeteries:RiversideandHillside.Staffassistscustomers/visitorswithmemorialsandperpetual careforboth.Hillsidecemeteryisnolongeropentoburialandexpendituresarerecordedthrough parkoperationsintheGeneralFund. OBJECTIVES: 1.Servethepublicinacourteous,professionalmanner. 2.Maintaincemeterygroundsandgravemarkers. ISSUES: 1.Increasingmaintenancecosts. 2.Cremation MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Plotoccupied 3,449 3,470 3,497 3,510 Plotsreserved 765 765 753 745 Plotsavailableforsale 1,066 1,048 1,029 1,009 Numberofplotssold 14 9 19 17 20 Numberofinternments 23 15 36 29 30 Numberofmarkersstaked 11 13 27 21 20 BUDGETCOMMENTARY: Therearenosubstantialchangestoeitherrevenuesorexpendituresfor2016.TheCemeteryFund wasreportedasanenterprisefundinprioryearbudgets. 156 BUDGET: RIVERSIDECEMETERY 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 19,810 12,913 37,465 24,800 25,700 26,000 4.8% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 963 (314)1,258 808 400 1,000 23.8% ContributedCapital --------- OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 20,773$12,599$38,723$25,608$26,100$27,000$5.4% EXPENDITURES PersonnelServices 6,602$2,197$3,089$4,073$4,073$4,073$0.0% Supplies 245 401 96 775 775 775 0.0% OtherServices&Charges 15,849 13,645 19,200 25,775 25,775 22,152 -14.1% CapitalOutlay --------- OperatingTransfers --------- TOTALEXPENDITURES 22,696$16,243$22,385$30,623$30,623$27,000$-11.8% FUNDBALANCE-JANUARY1 21,276$19,353$15,709$32,047$32,047$27,524$ Excess(Deficiency)of RevenuesoverExpenditures (1,923)(3,644)16,338 (5,015)(4,523)- FUNDBALANCE-DECEMBER31 19,353$15,709$32,047$27,032$27,524$27,524$ 157 MINNESOTAINVESTMENTFUND DEPARTMENT:MinnesotaInvestmentFund SUPERVISOR:CommunityDevelopmentDirector FUND#:221 ACTIVITY#:46526-46528 ACTIVITYSCOPE: Followingstateandfederalguidelines,theMinnesotaInvestmentFundadministersloanstolocal businesses. OBJECTIVES: 1.TomatchavailablefundswithqualifyingbusinessesinMonticello. ISSUES: 1.NumberofqualifiedbusinessesinMonticello. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Loansoutstanding 0 0 0 0 0 BUDGETCOMMENTARY: Interestearnedoninvestments,notrepaymentofloans,istheonlyactivityanticipatedin2016. 158 BUDGET: MINNINVESTMENTFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 43,588 (14,840)53,471 25,000 15,000 25,000 0.0% OperatingTransfers --------- TOTALREVENUES 43,588$(14,840)$53,471$25,000$15,000$25,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- OperatingTransfers --------- TOTALEXPENDITURES -$-$-$-$-$-$--- FUNDBALANCE-JANUARY1 1,022,470$1,066,058$1,051,218$1,104,689$1,104,689$1,119,689$ Excess(Deficiency)of RevenuesoverExpenditures 43,588 (14,840)53,471 25,000 15,000 25,000 FUNDBALANCE-DECEMBER31 1,066,058$1,051,218$1,104,689$1,129,689$1,119,689$1,144,689$ 159 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. 3.Competitionfromotherfitnessfacilities. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Customervisits,numberof 175,596 211,234 204,134 199,228 200,000 Grossprogramsales 162,227$192,708$184,125$213,924$200,000$ Annualmemberships 1,055 1,426 1,380 1,384 1,400 Newmemberships 369 554 468 446 450 Renewedmemberships 686 872 912 938 950 Ratioofrenewedtonew memberships 1.86 1.57 1.95 2.10 2.11 Rentalrevenue 166,374$163,329$200,964$204,938$215,500$ BUDGETCOMMENTARY: Budgetedcommunitycenterrevenuesarenotdividedbyactivity.Thelargestrevenuesourceis memberships($835,000)andpropertytaxes($364,000).Thepropertytaxdeclinewasoffsetbythe 160 declineintransfersouttosupportdebtservice.Otherrevenuesincludeconcessionsales,room rentals,andprogramfees.Thisactivityalsoincludesallpersonnelserviceexpendituresforthefund. The2014increaseinotherservicesandchargesreflectsthere-allocationofexpensesforITservices andinsurances(property,liabilityandvehicle).The2016personnelservicesbudgetincludesafull stepincreaseanda3%(2%inJanuaryand1%inJuly)marketratewageincrease.Otherbudgetitems areexpectedtoremainclosetoprioryearlevels. BUDGET: COMMUNITYCENTER 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes 1,197,239$1,181,335$1,388,404$1,363,000$1,363,000$364,000$-73.3% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,106,158 1,279,363 1,312,825 1,391,300 1,401,700 1,387,110 -0.3% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 58,969 24,701 14,534 53,750 53,750 28,216 -47.5% OperatingTransfers 850,000 175,000 50,000 ------ TOTALREVENUES 3,212,366$2,660,399$2,765,763$2,808,050$2,818,450$1,779,326$-36.6% EXPENDITURES PersonnelServices 923,264$969,868$963,780$1,002,065$1,002,065$1,060,173$5.8% Supplies 173,306 278,327 182,906 261,396 249,996 201,653 -22.9% OtherServices&Charges 361,638 368,035 409,453 460,589 459,159 447,500 -2.8% CapitalOutlay 1,662,666 77,465 -79,000 79,000 70,000 -11.4% OperatingTransfers 890,000 875,000 1,040,000 1,005,000 1,005,000 --100.0% TOTALEXPENDITURES 4,010,874$2,568,695$2,596,139$2,808,050$2,795,220$1,779,326$-36.6% FUNDBALANCE-JANUARY1 978,008$179,500$271,204$440,828$440,828$464,058$ Excess(Deficiency)of RevenuesoverExpenditures (798,508)91,704 169,624 -23,230 - FUNDBALANCE-DECEMBER31 179,500$271,204$440,828$440,828$464,058$464,058$ ADMINISTRATIONDIVISION: Administrationmanagesandtrackspayroll,maintenance,andallexpensesthatarebuildingwide, includingutilitiesandinsurance.Thisisthegeneraloperatingactivityforthecommunitycenter. COMMUNITYCENTER 2012 2013 2014 2015 2015 2016 % ADMINISTRATION Actual Actual Actual Budget Projected Budget Change PersonnelServices 923,264$969,868$963,780$1,002,065$1,002,065$1,060,173$5.8% Supplies 85,249 119,334 90,295 121,555 121,555 105,750 -13.0% OtherServices&Charges 330,834 333,468 376,200 423,627 423,627 415,341 -2.0% CapitalOutlay 1,662,666 77,465 -79,000 79,000 60,000 -24.1% OperatingTransfers 890,000 875,000 1,040,000 1,005,000 1,005,000 --100.0% TOTALEXPENDITURES 3,892,013$2,375,135$2,470,275$2,631,247$2,631,247$1,641,264$-37.6% 161 PROGRAMMINGDIVISION: Thecommunitycenterprogrammingactivityprovideseducational,recreational,andprofessional activitiestoavarietyofusers.Theprogrammingactivitymanagesspecificcoststhatpertainto programsofferedatthecommunitycenter,aswellasexpendituresdirectlyattributableto programmedareasofthefacility,i.e.indoorplay,fitnessarea,andpool.Facilityconcession expendituresarealsoincluded. COMMUNITYCENTER 2012 2013 2014 2015 2015 2016 % PROGRAMMING Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 72,054 142,507 81,027 121,511 121,511 88,650 -27.0% OtherServices&Charges 25,904 31,029 27,359 30,310 30,310 26,650 -12.1% CapitalOutlay -----10,000 --- OperatingTransfers --------- TOTALEXPENDITURES 97,958$173,536$108,386$151,821$151,821$125,300$-17.5% NSPBALLFIELDCONSCESSIONSDIVISION: Ballfieldconcessionstracksoperatingexpenditures,exceptpayroll,fortheballfieldconcessions stand,whichislocatedattheXcel(NSP)Ballfields.Concessionsprovidesnackfoodsandbeerduring scheduledsoftball,baseball,andfootballgamesand/orpractices.Concessionstandrevenuesdonot coverfullyallocatedexpenditures.Operationswerescaledbackin2015. COMMUNITYCENTER 2012 2013 2014 2015 2015 2016 % NSPBALLFIELD Actual Actual Actual Budget Projected Budget Change PersonnelServices -$-$-$-$-$-$--- Supplies 16,003 16,486 11,584 18,330 6,930 7,253-60.4% OtherServices&Charges 4,900 3,538 5,894 6,652 5,222 5,509 -17.2% CapitalOutlay --------- OperatingTransfers --------- TOTALEXPENDITURES 20,903$20,024$17,478$24,982$12,152$12,762$-48.9% 162 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 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.In2015,thecityissued$2,605,000inG.O.bondsforstreetreconstructionandassessable improvements.Seeindividualfundsforthebudgetissuesfacingeachdebtservicefund. BUDGETSUMMARY DEBTSERVICEFUNDS 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 1,260,284$1,196,912$1,262,234$1,290,000$1,290,000$2,084,000$61.6% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 1,047,949 1,016,419 1,489,274 769,225 2,131,710 687,505 -10.6% Miscellaneous 236,018 203,389 296,686 223,300 239,300 215,900 -3.3% OperatingTransfers 3,747,326 4,291,481 3,906,885 2,409,836 3,315,736 1,275,134 -47.1% DebtProceeds --168,374 -662 ---- TOTALREVENUES 6,291,577$6,708,201$7,123,453$4,692,361$6,977,408$4,262,539$-9.2% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges -750 334 ------ CapitalOutlay --------- DebtService 6,464,930 16,912,832 5,953,964 5,620,651 5,599,639 5,109,484 -9.1% OperatingTransfers ----5,871 ---- TOTALEXPENDITURES 6,464,930$16,913,582$5,954,298$5,620,651$5,605,510$5,109,484$-9.1% FUNDBALANCE-JANUARY1 $13,126,247 12,952,894$2,747,513$3,916,668$3,916,668$5,288,566$ Excess(Deficiency)of RevenuesoverExpenditures (173,353)(10,205,381)1,169,155 (928,290)1,371,898 (846,945) FUNDBALANCE-DECEMBER31 12,952,894$2,747,513$3,916,668$2,988,378$5,288,566$4,441,621$ 163 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 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2007AG.0.ImprovementBondsincludespecialassessments, transfersfromthecity'sSewageFund,andpropertytaxes.Principalandinterestpaymentsarethe onlyexpendituresbudgetedforthisfundin2016. 164 BUDGET: 2007AIMPROVEMENTBOND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 431,051$427,447$539,672$420,000$420,000$420,000$0.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 162,335 144,881 378,594 116,114 116,114 96,082 -17.3% Miscellaneous (9,666)(2,872)(4,309)-1,000 ---- OperatingTransfers 140,000 -------- DebtProceeds --------- TOTALREVENUES 723,720$569,456$913,957$536,114$537,114$516,082$-3.7% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges -375 167 ------ CapitalOutlay --------- DebtService 623,670 625,115 625,710 621,800 621,800 619,600 -0.4% OperatingTransfers --------- TOTALEXPENDITURES 623,670$625,490$625,877$621,800$621,800$619,600$-0.4% FUNDBALANCE-JANUARY1 216,886$316,936$260,902$548,982$548,982$464,296$ Excess(Deficiency)of RevenuesoverExpenditures 100,050 (56,034)288,080 (85,686)(84,686)(103,518) FUNDBALANCE-DECEMBER31 316,936$260,902$548,982$463,296$464,296$360,778$ REMAININGDEBTSERVICE: PayablePrincipalInterestRate Total Principal Interest PrincipalInterest 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 1,940,000$115,800$2,055,800$305,000$18,500$1,635,000$97,300$ GOBonds,Series2007A RevenuePortion(Sewage)Non-RevenuePortion 165 2008BG.O.SEWERREVENUEREFUNDINGBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:315 ACTIVITY#:47000 ACTIVITYSCOPE: The2008BG.O.SewerRevenueRefundingBondsrefinancedasewagetreatmentplant(WWTP) note.ThedebtserviceschedulecallsforFebruaryandAugustprincipalpaymentsandFebruaryand Augustinterestpaymentsthroughtheyear2018.ThebondswereredeemableonFebruary1,2016. Theaverageinterestrateis3.40%.RevenuesourcesincludetransfersfromtheSewageFundand propertytaxes. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesforthe2008AG.O.SewerRevenueRefundingBondsincludeatransfer fromthecitySewerAccessFundandpropertytaxes.The2016expendituresareprincipaland interestpaymentsonthisdebtissue. 166 BUDGET: 2008G.O.SEWERREFUNDING 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 517,039$502,889$499,697$500,000$500,000$500,000$0.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 19,319 (12,429)21,686 5,000 7,000 5,000 0.0% OperatingTransfers 450,000 450,000 857,337 340,000 1,089,000 340,000 0.0% DebtProceeds --------- TOTALREVENUES 986,358$940,460$1,378,720$845,000$1,596,000$845,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 1,048,486 1,050,216 1,049,360 1,048,942 1,048,942 1,049,254 0.0% OperatingTransfers --------- TOTALEXPENDITURES 1,048,486$1,050,216$1,049,360$1,048,942$1,048,942$1,049,254$0.0% FUNDBALANCE-JANUARY1 722,832$660,704$550,948$880,308$880,308$1,427,366$ Excess(Deficiency)of RevenuesoverExpenditures (62,128)(109,756)329,360 (203,942)547,058 (204,254) FUNDBALANCE-DECEMBER31 660,704$550,948$880,308$676,366$1,427,366$1,223,112$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 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 2,968,000$179,095$3,147,095$ GOSewerRefundingBonds,Series2008B 167 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 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: Thecityissuedthe$3,255,0002010G.O.ImprovementandRefundingBondtofinancethe reconstructionofWestRiverStreet,intersectionimprovementsontheNortheastcornersofHighway 25andBroadwayandEastRiverStreets,andtorefinancetheG.O.ImprovementBondsof2002. The2010AG.O.ImprovementBondrevenuesourcesareacombinationofexistingcityfunds:Water Fund,SewageFundandEconomicDevelopmentAuthorityFund.Propertytaxesandspecial assessmentsalsosupportdebtservicepayments.Expendituresconsistsolelyofdebtprincipaland interestpayments. 168 BUDGET: 2010AGOIMPROVEMENTBOND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 51,704$20,152$-$40,000$40,000$40,000$0.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 192,715 118,480 61,310 55,073 113,900 52,299 -5.0% Miscellaneous 20,101 (8,639)26,613 -5,000 ---- OperatingTransfers 308,195 308,195 239,595 117,936 246,736 235,134 99.4% DebtProceeds --------- TOTALREVENUES 572,715$438,188$327,518$213,009$361,736$327,433$53.7% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 460,428 448,550 360,767 302,899 302,899 288,350 -4.8% OperatingTransfers --------- TOTALEXPENDITURES 460,428$448,550$360,767$302,899$302,899$288,350$-4.8% FUNDBALANCE-JANUARY1 517,835$630,122$619,760$586,511$586,511$645,348$ Excess(Deficiency)of RevenuesoverExpenditures 112,287 (10,362)(33,249)(89,890)58,837 39,083 FUNDBALANCE-DECEMBER31 630,122$619,760$586,511$496,621$645,348$684,431$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 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 1,690,000$122,049$1,812,049$ GOImprovementandRefundingBonds,Series2010A 169 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 2012 2013 2014 2015 2016 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. 170 BUDGET: 2011AG.O.BONDFUND(2005A)2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 260,490$246,424$222,865$330,000$330,000$330,000$0.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 692,899 753,058 1,049,370 598,038 1,945,596 517,124 -13.5% Miscellaneous 196,438 224,246 251,357 216,800 224,800 208,900 -3.6% OperatingTransfers 1,959,131 2,658,286 1,769,953 946,900 975,000 700,000 -26.1% DebtProceeds --------- TOTALREVENUES 3,108,958$3,882,014$3,293,545$2,091,738$3,475,396$1,756,024$-16.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService 3,053,238 2,911,356 2,880,767 2,460,750 2,460,750 2,424,450 -1.5% OperatingTransfers --------- TOTALEXPENDITURES 3,053,238$2,911,356$2,880,767$2,460,750$2,460,750$2,424,450$-1.5% FUNDBALANCE-JANUARY1 290,928$346,648$1,317,306$1,730,084$1,730,084$2,744,730$ Excess(Deficiency)of RevenuesoverExpenditures 55,720 970,658 412,778 (369,012)1,014,646 (668,426) FUNDBALANCE-DECEMBER31 346,648$1,317,306$1,730,084$1,361,072$2,744,730$2,076,304$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 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 5,745,000$381,825$6,126,825$ GORefundingBonds,Series2011A 171 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 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: The$6,595,0002014AG.O.bondissuehadtwocomponents:$6,080,000judgmentportionsand $515,000capitalequipmentportion.Thecapitalequipmentportionwillbeaccountedforinthe CentralEquipmentFund.After2015,annualdebtservicepaymentswillbeaddedtothepropertytax levy.The2015interestonlypaymentswereaddedtothebondissue.Thefinalpaymentonthebonds isinDecember2030.Thebondsareredeemablein2021.However,anextraordinaryoptional redemptionprovisionallowsthecitytoredeemthebondsat101%ofparifthefiberopticssystemis soldorleased.Thesettlementproceedsweredistributeddirectlytothetrusteeforthebondholders. 172 BUDGET: 2014AGOJUDGMENTBONDS 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$544,000$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous --778 1,000 1,000 1,000 0.0% OperatingTransfers --------- DebtProceeds --168,374 ------ TOTALREVENUES -$-$169,152$1,000$1,000$545,000$54400.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService ---185,000 163,988 515,362 178.6% OperatingTransfers --------- TOTALEXPENDITURES -$-$-$185,000$163,988$515,362$178.6% FUNDBALANCE-JANUARY1 -$-$-$169,152$169,152$6,164$ Excess(Deficiency)of RevenuesoverExpenditures --169,152 (184,000)(162,988)29,638 FUNDBALANCE-DECEMBER31 -$-$169,152$(14,848)$6,164$35,802$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 6/15/2016 82,431$82,431$ 12/15/2016 350,000$82,431 1.00%432,431 6/15/2017 80,680 80,680 12/15/2017 350,000 80,680 1.25%430,680 6/15/2018 78,493 78,493 12/15/2018 355,000 78,493 1.50%433,493 6/15/2019 75,831 75,831 12/15/2019 360,000 75,831 1.85%435,831 6/15/2020 72,501 72,501 12/15/2020 365,000 72,501 2.20%437,501 6/15/2021 68,486 68,486 12/15/2021 375,000 68,486 2.50%443,486 6/15/2022 63,798 63,798 12/15/2022 385,000 63,798 2.75%448,798 6/15/2023 58,504 58,504 12/15/2023 395,000 58,504 2.90%453,504 6/15/2024 52,777 52,777 12/15/2024 405,000 52,777 3.05%457,777 6/15/2025 46,600 46,600 12/15/2025 420,000 46,600 3.20%466,600 6/15/2026 39,881 39,881 12/15/2026 435,000 39,881 3.35%474,881 6/15/2027 32,594 32,594 12/15/2027 445,000 32,594 3.40%477,594 6/15/2028 25,029 25,029 12/15/2028 465,000 25,029 3.38%490,029 6/15/2029 17,182 17,182 12/15/2029 480,000 17,182 3.55%497,182 6/15/2030 8,663 8,663 12/15/2030 495,000 8,663 3.50%503,663 Total 6,080,000 1,606,900 7,686,900$ GOBonds,Series2014A(JudgmentPortion) 173 2015BG.O.STREETRECONSTRUCTION&IMPROVEMENTBONDFUND DEPARTMENT:DebtService SUPERVISOR:FinanceDirector FUND#:319 ACTIVITY#:47000 ACTIVITYSCOPE: The2015BG.O.StreetReconstructionandImprovementBondprovidedfinancingforSchool Boulevard,FallonAvenueand85th Streetimprovements.Thisissuealsoprovidesfinancingforstreet andotherinfrastructureimprovementsintheareaeastofHighway25andnorthofInterstate94. The$2,605,000bondissueallocated$1,885,000forstreetreconstructionand$720,000for improvements.Theschooldistrictwasassessed$175,000forSchoolBoulevardimprovementsand theremainingassessmentsforstreetreconstructionactivitywillbedeterminedin2016.Thecity willaddtheannualprincipalandinterestdebtservicepaymentstoitstaxlevyforunassessedcosts. Thebondshaveanaverageinterestrateof2.5856%andareredeemableinDecemberof2022. OBJECTIVES: 1.Makescheduleddebtpaymentsinatimelymanner. ISSUES: 1.Maintainingthelowestpossiblepropertytaxlevy. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: The$2,605,0002015BG.O.bondissuehastwocomponents:$1,885,000streetreconstruction portionand$720,000improvementportion.Thestreetreconstructionportionwillbesupportedon somelevelbyspecialassessmentsstartingin2017.Thefeasibilityreportforthereconstruction projectsestimatedfutureassessmentsat$1.2million.Theimprovementportionofthedebtissueis supportedbyasingleassessmentof$175,000onschooldistrictproperty.Propertytaxeswillbe leviedforthegapbetweenassessmentrevenueanddebtservicepayments.The2016$250,000levy exceedsthebondcovenantrequiredlevyby$50,000. 174 BUDGET: 2015BG.O.Bonds 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$250,000$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments -----22,000 --- Miscellaneous -----1,000 --- OperatingTransfers --------- DebtProceeds ----662 ---- TOTALREVENUES -$-$-$-$662$273,000$--- EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService -----212,468 --- OperatingTransfers --------- TOTALEXPENDITURES -$-$-$-$-$212,468$--- FUNDBALANCE-JANUARY1 -$-$-$-$-$662$ Excess(Deficiency)of RevenuesoverExpenditures ----662 60,532 FUNDBALANCE-DECEMBER31 -$-$-$-$662$61,194$ REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 6/15/2016 -$37,131$37,131$ 12/15/2016 145,000 29,838 1.50%174,838 6/15/2017 -28,750 28,750 12/15/2017 150,000 28,750 1.50%178,750 6/15/2018 -27,625 27,625 12/15/2018 160,000 27,625 1.50%187,625 6/15/2019 -26,426 26,426 12/15/2019 160,000 26,426 1.50%186,426 6/15/2020 -25,225 25,225 12/15/2020 160,000 25,225 1.50%185,225 6/15/2021 -24,024 24,024 12/15/2021 165,000 24,024 2.00%189,024 6/15/2022 -22,376 22,376 12/15/2022 165,000 22,376 2.00%187,376 6/15/2023 -20,724 20,724 12/15/2023 170,000 20,724 2.50%190,724 6/15/2024 -18,600 18,600 12/15/2024 175,000 18,600 2.50%193,600 6/15/2025 -16,413 16,413 12/15/2025 180,000 16,413 2.50%196,413 6/15/2026 -14,162 14,162 12/15/2026 185,000 14,162 2.50%199,162 6/15/2027 -11,850 11,850 12/15/2027 185,000 11,850 3.00%196,850 6/15/2028 -9,075 9,075 12/15/2028 195,000 9,075 3.00%204,075 6/15/2029 -6,150 6,150 12/15/2029 200,000 6,150 3.00%206,150 6/15/2030 -3,150 3,150 12/15/2030 210,000 3,150 3.00%213,150 Total 2,605,000$576,069$3,181,069$ GOBonds,Series2015B 175 CLOSEDDEBTSERVICEFUNDS CLOSEDFUNDSINCLUDEDINSUMMARYTOTAL: 2011AG.O.RefundingBond–EscrowPayments 2008AG.O.RevenueRefundingBondFund CLOSEDFUNDSSUMMARYTOTAL: ITSERVICES 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices -125,000 252,708 278,101 278,101 298,981 7.5% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous -(136)2,864 100 1,000 153 53.0% OperatingTransfers -30,000 ------- DebtProceeds --------- TOTALREVENUES -$154,864$255,572$278,201$279,101$299,134$7.5% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies -7,473 22,803 35,600 35,600 32,200 -9.6% OtherServices&Charges -108,416 195,917 232,500 232,500 256,780 10.4% CapitalOutlay -17,013 -10,000 10,000 10,000 0.0% DebtService --------- OperatingTransfers --------- TOTALEXPENDITURES -$132,902$218,720$278,100$278,100$298,980$7.5% FUNDBALANCE-JANUARY1 -$-$21,962$58,814$58,814$59,815$ Excess(Deficiency)of RevenuesoverExpenditures -21,962 36,852 101 1,001 154 FUNDBALANCE-DECEMBER31 -$21,962$58,814$58,915$59,815$59,969$ 176 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 CAPITAL PROJECT FUNDS CAPITALPROJECTFUNDS-SUMMARY DESCRIPTION Capitalprojectfundsareusedtoaccountforfinancialresourcesthatarerestricted,committed,orassignedto expenditureforcapitaloutlaysincludingtheacquisitionorconstructionofcapitalfacilitiesandothercapital assets—excludingcapitalassetsfinancedbyproprietaryfunds(enterpriseorinternalservice).Capitalproject fundsusethemodifiedaccrualbasisofaccountingforbothfinancialreportingandbudgetingpurposes.Thecity currentlyhassixactivecapitalprojectfunds. BUDGETISSUES Financingcapitalassetadditionsorreplacementsisanongoingchallenge,especiallyinanenvironmentwhere thefocusisonmaintainingalow,stablepropertytaxlevyandtraditionalresources(liquorfundtransfers)have beendivertedtootherneeds.Seetheindividualfundsforthebudgetissuesfacingeachcapitalprojectfund. BUDGETSUMMARY TOTALCAPITALPROJECT 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 29,655$2,346$229,030$-$-$300,000$--- TaxIncrements -------- Franchise&OtherTaxes 110,912 86,003 97,553 80,000 80,000 80,000 0.0% Licenses&Permits --------- IntergovernmentalRevenues 272,186 910,287 411,675 2,901,000 700,000 1,047,000 -63.9% ChargesforServices 170,371 270,319 38,494 120,000 392,000 50,000 -58.3% Fines&Forfeits --------- SpecialAssessments 844,574 1,027,174 400,848 209,000 679,420 100,720 -51.8% Miscellaneous 420,159 (100,220)333,390 62,000 81,000 62,000 0.0% OperatingTransfers 4,296,852 1,210,401 864,500 1,569,170 860,871 2,500,000 59.3% DebtProceeds ----2,600,000 5,000,000 --- TOTALREVENUES 6,144,709$3,406,310$2,375,490$4,941,170$5,393,291$9,139,720$85.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies 40,215 -18,262 ------ OtherServices&Charges 4,739 124,666 55,446 90,000 90,000 --100.0% CapitalOutlay 1,615,086 1,920,453 2,147,894 5,673,000 2,589,000 10,335,000 82.2% DebtService --------- OperatingTransfers 4,957,650 4,186,741 990,800 1,500,000 855,000 1,500,000 0.0% TOTALEXPENDITURES 6,617,690$6,231,860$3,212,402$7,263,000$3,534,000$11,835,000$62.9% FUNDBALANCE-JANUARY1 9,529,940$9,056,959$6,231,409$5,394,497$5,394,497$7,253,788$ Excess(Deficiency)of RevenuesoverExpenditures (472,981)(2,825,550)(836,912)(2,321,830)1,859,291 (2,695,280) FUNDBALANCE-DECEMBER31 9,056,959$6,231,409$5,394,497$3,072,667$7,253,788$4,558,508$ 177 CAPITALPROJECTFUND DEPARTMENT:CapitalProjectFund SUPERVISOR:CityEngineer FUND#:401 ACTIVITY#:43300 ACTIVITYSCOPE: TheCapitalProjectFundisgenericfundofthesametypeusedtoaccountforon-goingcapitalasset additionsandreplacements.Capitalassetsacquiredthroughthisfundincludestreetimprovements orotherinfrastructureandbuildings. OBJECTIVES: 1.Improvecityinfrastructure. 2.Extendcityinfrastructuretonewdevelopments. ISSUES: 1.Findingadequateresourcesforvariousprojectswhilemaintainingalow,stableproperty taxlevy. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Projectssupported 3 3 3 4 6 BUDGETCOMMENTARY: For2016,notableprojectsinclude:TH25/CSAH75-$1,347,000;FallonAvenueoverpass-$1,200,000; 95th Streetextension-$1,350,000;streetreconstructionArea5-$5,080,000;E7 th StreetandTH25 intersectionimprovements-$1,350,000.Fundingsourcesinclude:stateandfederalaid-$1,047,000; federalaid-$1,110,900;MNDOTCIMS-$492,000;StreetReconstructionFundtransfer-$1,500,000; WaterFundtransfer-$1,000,000;debtproceeds-$5,000,000.Reimbursementresolutionshave beenpassedbycouncilonsomeoftheseprojects.Theresolutionsallowthecitytoreimburseitself withdebtproceeds. 178 BUDGET: CAPITALPROJECTFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$228,854$-$-$300,000$--- Franchise&OtherTaxes --53,933 ------ IntergovernmentalRevenues 238,580 892,150 41,962 2,901,000 600,000 1,047,000 -63.9% ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --159,038 ------ Miscellaneous 24,286 (5,701)21,523 ------ OperatingTransfers 3,148,680 460,401 200,000 1,569,170 -2,500,000 59.3% DebtProceeds ----2,600,000 5,000,000 --- TOTALREVENUES 3,411,546$1,346,850$705,310$4,470,170$3,200,000$8,847,000$97.9% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --9,497 ------ OtherServices&Charges 333 23,737 16,615 ------ CapitalOutlay 1,253,139 1,714,983 893,015 4,821,000 1,500,000 9,177,000 90.4% OperatingTransfers -100,000 ------- TOTALEXPENDITURES 1,253,472$1,838,720$919,127$4,821,000$1,500,000$9,177,000$90.4% FUNDBALANCE-JANUARY1 (1,362,621)$795,453$303,583$89,766$89,766$1,789,766$ Excess(Deficiency)of RevenuesoverExpenditures 2,158,074 (491,870)(213,817)(350,830)1,700,000 (330,000) FUNDBALANCE-DECEMBER31 795,453$303,583$89,766$(261,064)$1,789,766$1,459,766$ 179 CLOSEDBONDFUND DEPARTMENT:ClosedBondFund SUPERVISOR:FinanceDirector FUND#:300 ACTIVITY#:47000 ACTIVITYSCOPE: FormerlyknownastheConsolidatedBondFund,thisfundhasbeenremovefromthedebtservice sectionandrenamed.Thefundhasnodebtobligation.However,specialassessmentssupporting pastdebtservicecontinuetoprovidefundingforcityprojects. OBJECTIVES: 1.Providefundingforvariouscityprojects,includingBertramChainofLakesproperty acquisitions. 2.Certifyorcollectdeferredspecialassessmentswhendevelopmentoccursafterrelated debthasbeenfullyamortized. ISSUES: 1.Decliningassessmentcollectionsonretireddebt. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: In2016,specialassessmentscollectedonprojectswithretireddebtwillprovidefundingforBertram ChainofLakespropertyacquisitionsandpathwayandparkimprovements.AtransfertothePark& PathwayDedicationFundattheendof2015willprovidemoneyforsuchpurposes.Similarly,a supplementaltransfermayoccurin2016tofinance2017projects.Futureassessmentcollectionsfor 2017andbeyondareestimatedat$525,000. 180 BUDGET: CLOSEDBONDFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments 844,574 1,027,174 241,810 209,000 679,420 100,720 -51.8% Miscellaneous 33,242 (19,501)67,631 5,000 16,000 5,000 0.0% OperatingTransfers 299,339 ---5,871 ---- DebtProceeds --------- TOTALREVENUES 1,177,155$1,007,673$309,441$214,000$701,291$105,720$-50.6% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges --------- CapitalOutlay --------- DebtService --------- OperatingTransfers 575,122 750,000 664,500 -855,000 ---- TOTALEXPENDITURES 575,122$750,000$664,500$-$855,000$-$--- FUNDBALANCE-JANUARY1 514,117$1,116,150$1,373,823$1,018,764$1,018,764$865,055$ Excess(Deficiency)of RevenuesoverExpenditures 602,033 257,673 (355,059)214,000 (153,709)105,720 FUNDBALANCE-DECEMBER31 1,116,150$1,373,823$1,018,764$1,232,764$865,055$970,775$ 181 PARK&PATHWAYDEDICATIONFUND DEPARTMENT:Recreation&Culture SUPERVISOR:ParksSuperintendent FUND#:229 ACTIVITY#:45202 ACTIVITYSCOPE: ActivitiesoftheParkandPathwayDedicationFundincludeupdatingandmaintainingthecity's pathwaysystem,aswellasdesignatingfundsforfuturecityparksandpathways. OBJECTIVES: 1.Improvepathwayssystem. 2.Planforintegrationoffundstowardparklandpurchases. 3.ContinuethepurchaseoftheBertramChainofLakes(formerlytheY.M.C.A.)property. ISSUES: 1.Economicimpactonnewdevelopmentandhomeconstruction. 2.Timeconstraintsofotherprojects. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 LandAcquisition -$205,470$1,163,248$609,614$563,000 Projectssupported 0 1 3 2 3 Dedicationfees -$-$-$107,929$-$ BUDGETCOMMENTARY: Thefund’smajorrevenuesourceisnormallyparkdedicationfees.However,duetotheeconomic conditionsandlackofnewdevelopment,dedicationfeeshavebeenanunreliablesource. Consequently,thecitytypicallyfinancesprojectswithtransfersfromotherfunds,whicharemadein theyearpriorexpenditure. The2016budgetedexpendituresincludetheSpiritHillspathwayconnection($45,000),land acquisitionpurchasesatBertramChainofLakes($563,000),andBCOLimprovements($200,000). 182 BUDGET: PARK&PATHWAYDEDICATION 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --369,713 -100,000 ---- ChargesforServices ---70,000 107,000 --100.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 10,937 (7,851)32,870 2,000 15,000 2,000 0.0% OperatingTransfers 573,833 750,000 664,500 -855,000 ---- TOTALREVENUES 584,770$742,149$1,067,083$72,000$1,077,000$2,000$-97.2% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --8,765 ------ OtherServices&Charges 126 6,000 38,539 90,000 90,000 --100.0% CapitalOutlay -205,470 1,254,879 727,000 727,000 823,000 13.2% OperatingTransfers --------- TOTALEXPENDITURES 126$211,470$1,302,183$817,000$817,000$823,000$0.7% FUNDBALANCE-JANUARY1 (141,890)$442,754$973,433$738,333$738,333$998,333$ Excess(Deficiency)of RevenuesoverExpenditures 584,644 530,679 (235,100)(745,000)260,000 (821,000) FUNDBALANCE-DECEMBER31 442,754$973,433$738,333$(6,667)$998,333$177,333$ 183 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 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: Themainrevenuesourcesarestormseweraccessandtrunkfeesonnewconstructionorspecial assessmentsofpastaccessandtrunkfees.Theoperatingtransfersaretothe2011A(formerly2005A) RefundingImprovementBond--partoftheinterchangeproject,andtothe2010AImprovementand RefinancingBond--itsshareofthe2010stormsewerproject.For2016andbeyond,fundingfor routinepondimprovementswillcomefromtheGeneralFund.Therearenoplannedcapitaloutlays fornon-routinepondimprovementsin2016. 184 BUDGET: STORMWATERACCESSFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGETPROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --38,494 50,000 285,000 50,000 0.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 62,037 (17,598)39,638 20,000 15,000 20,000 0.0% OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 62,037$(17,598)$78,132$70,000$300,000$70,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 604 7,164 292 ------ CapitalOutlay --------- OperatingTransfers 396,073 321,800 326,300 ------ TOTALEXPENDITURES 396,677$328,964$326,592$-$-$-$--- FUNDBALANCE-JANUARY1 1,803,383$1,468,743$1,122,181$873,721$873,721$1,173,721$ Excess(Deficiency)of RevenuesoverExpenditures (334,640)(346,562)(248,460)70,000 300,000 70,000 FUNDBALANCE-DECEMBER31 1,468,743$1,122,181$873,721$943,721$1,173,721$1,243,721$ 185 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.DevelopalightreplacementprogramwithWrightHennepinandXcelEnergy. 3.Verifylampandfixturemaintenancebyutilitycompanies. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Projectssupported 4 0 0 2 3 BUDGETCOMMENTARY: Electricfranchisefeesprovideresourcesforlightingprojects,ofteninconjunctionwithotherstreet improvementprojects.Capitaloutlayfor2016includes$200,000forintersectionlights,$60,000for EastBridgeandWestBridgeparkpathwaylighting,and$75,000forvariouscurrentlyunspecified projects. 186 BUDGET: STREETLIGHTIMPROVEMENTS 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Franchise&OtherTaxes 110,912 86,003 43,620 80,000 80,000 80,000 0.0% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 40,427 (10,106)86,976 10,000 10,000 10,000 0.0% OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 151,339$75,897$130,596$90,000$90,000$90,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 570 -------- CapitalOutlay ---125,000 362,000 335,000 168.0% OperatingTransfers 400,000 -------- TOTALEXPENDITURES 400,570$-$-$125,000$362,000$335,000$168.0% FUNDBALANCE-JANUARY1 965,618$716,387$792,284$922,880$922,880$650,880$ Excess(Deficiency)of RevenuesoverExpenditures (249,231)75,897 130,596 (35,000)(272,000)(245,000) FUNDBALANCE-DECEMBER31 716,387$792,284$922,880$887,880$650,880$405,880$ 187 STREETRECONSTRUCTIONFUND DEPARTMENT:PublicWorks SUPERVISOR:CityEngineer/PublicWorksDirector FUND#:406 ACTIVITY#:43121 ACTIVITYSCOPE: TheStreetReconstructionFundwasestablishedtotrackannualimprovementstocityinfrastructure. Improvementsarebasedonanannualreconstructionschedule. OBJECTIVES: 1.Improvecitystreetsinthecapitalimprovementplan. ISSUES: 1.Citynolongerleviesforthisfund. 2.Othertraditionalresourceshavebeendivertedtootherneeds. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 NotApplicable BUDGETCOMMENTARY: PastrevenuesourceshaveincludedpropertytaxesandoperatingtransfersfromtheLiquorFund. Neitherthetaxnortransferhasbeenbudgetedfor2016.Further,thecityanticipatesmakinga $1,500,000operatingtransfertotheCapitalProjectsFundtoplugfundinggapsforvariousprojects thatdidnotmaterializein2015.Reimbursementresolutionshavebeenpassedbycouncilonvarious projectssupportedbytheStreetReconstructionFund.Theseresolutionsallowthecitytoreimburse itselfwithdebtproceeds.Ifthe2016transferoccurs,staffwilldeterminetheneedforretainingthe reconstructionfundasseparatefund. 188 BUDGET: STREETRECONSTRUCTION 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes 29,655$2,346$176$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 133,869 (24,620)84,752 25,000 25,000 25,000 0.0% OperatingTransfers 275,000 -------- DebtProceeds --------- TOTALREVENUES 438,524$(22,274)$84,928$25,000$25,000$25,000$0.0% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges 37 -------- CapitalOutlay --------- OperatingTransfers 1,862,005 219,000 -1,500,000 -1,500,000 0.0% TOTALEXPENDITURES 1,862,042$219,000$-$1,500,000$-$1,500,000$0.0% FUNDBALANCE-JANUARY1 3,330,897$1,907,379$1,666,105$1,751,033$1,751,033$1,776,033$ Excess(Deficiency)of RevenuesoverExpenditures (1,423,518)(241,274)84,928 (1,475,000)25,000 (1,475,000) FUNDBALANCE-DECEMBER31 1,907,379$1,666,105$1,751,033$276,033$1,776,033$301,033$ 189 CLOSEDCAPITALPROJECTFUNDS CLOSEDFUNDSINCLUDEDINSUMMARYTOTAL: SanitarySewerAccess WaterAccess CapitalOutlayRevolving CLOSEDFUNDSSUMMARYTOTAL: CLOSEDCAPITALPROJECT 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- IntergovernmentalRevenues --------- ChargesforServices 33,606 18,137 ------- Fines&Forfeits 170,371 270,319 ------- SpecialAssessments --------- Miscellaneous --------- OperatingTransfers 115,361 (14,843)------- DebtProceeds --------- TOTALREVENUES 319,338$273,613$-$-$-$-$--- EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies 40,215 -------- OtherServices&Charges 3,069 87,765 ------- CapitalOutlay 361,947 -------- OperatingTransfers 1,724,450 2,795,941 ------- TOTALEXPENDITURES 2,129,681$2,883,706$-$-$-$-$--- FUNDBALANCE-JANUARY1 4,420,436$2,610,093$-$-$-$-$ Excess(Deficiency)of RevenuesoverExpenditures (1,810,343)(2,610,093)---- FUNDBALANCE-DECEMBER31 2,610,093$-$-$-$-$-$ 190 ENTERPRISE FUNDS Adopted2016 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 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGETCHANGE PropertyTaxes -$-$-$-$-$-$--- SaleofGoods 4,854,798 5,085,925 5,165,737 4,973,000 5,213,833 5,367,710 7.9% Licenses&Permits 970 1,920 2,735 3,700 3,700 3,700 0.0% IntergovernmentalRevenues --------- ChargesforServices 5,220,495 5,204,529 5,223,784 5,236,534 5,276,950 5,241,070 0.1% Fines&Forfeits --------- SpecialAssessments 158,319 44,339 40,440 30,000 30,000 30,000 0.0% Miscellaneous 535,993 599,191 573,928 151,400 151,400 185,779 22.7% ContributedCapital --966,494 140,450 1,020,565 140,450 0.0% OperatingTransfers 4,450,000 860,000 6,383,732 450,000 450,000 350,000 -22.2% DebtProceeds 1,004,698 3,003,224 -3,322,000 1,400,000 2,000,000 -39.8% TOTALREVENUES 16,225,273$14,799,128$18,356,850$14,307,084$13,546,448$13,318,709$-6.9% EXPENDITURES PersonnelServices 1,827,551$1,631,538$1,621,367$1,844,478$1,878,478$2,097,728$13.7% Supplies 3,881,967 4,032,579 4,204,556 4,196,200 4,394,850 4,385,536 4.5% OtherServices&Charges 3,704,338 3,215,614 3,506,438 3,075,998 3,032,299 3,083,464 0.2% CapitalOutlay 98,628 3,480,674 139,513 4,277,000 1,960,000 2,766,000 -35.3% DebtService 1,048,034 814,879 6,054,285 359,698 359,698 492,198 36.8% OperatingTransfers 4,032,219 1,138,500 2,972,232 1,582,936 2,760,736 2,425,134 53.2% TOTALEXPENDITURES 14,592,737$14,313,784$18,498,391$15,336,310$14,386,061$15,250,060$-0.6% FUNDBALANCE-JANUARY1 7,150,051$8,782,587$9,267,931$9,126,390$9,126,390$8,286,777$ Excess(Deficiency)of RevenuesoverExpenditures 1,632,536 485,344 (141,541)(1,029,226)(839,613)(1,931,351) FUNDBALANCE-DECEMBER31 8,782,587$9,267,931$9,126,390$8,097,164$8,286,777$6,355,426$ 191 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 2012 2013 2014 2015 2016 Watercustomers 3,983 3,983 4,112 4,148 4,208 Metersread 14,995 15,815 16,099 16,520 16,800 Metersreplaced 418 418 47 44 50 Newmetersinstalled 20 20 79 49 60 Waterlocates 500 500 300 300 300 Gallonspumped(MG)618 592 511 514 520 Valvesmaintained 1/4city 1/4city 242 436 400 Hydrantsmaintained 1/4city 1/4city 201 450 400 Timesmainsflushed 2 2 2 2 2 Mains/wellsrebuilt 1 1 1 0 1 Watertowersinspections 2 2 2 1 2 Reservoirinspections 1 1 1 0 1 Watersamplestosent 250 250 250 250 250 Newservicesinspected 5 5 76 78 60 GPSwatersystem 1/8city 1/8city 1/8city 1/8city 1/8city Serviceshut-offs 100 100 150 150 150 192 BUDGETCOMMENTARY: TheWaterFund’smainsourceofrevenueisusercharges.In2013and2015,watercustomeruser rateswereincreasedby10%and5%,respectively.Toencourageconservationsandmeetstate mandates,thecityhasusagetierswithhigherratesateachlevel.Capitaloutlaysinclude$276,000 forannualupgradestothedistributionsystem.The2016personnelservicesbudgetincludesafull stepincreaseanda3%(2%inJanuaryand1%inJuly)marketratewageadjustmentincrease.The prioryeardeclineinpersonnelservicesreflectstheshiftingofdutiesandresponsibilitiesresulting fromthepublicworksdirectorvacancy.In2016,onenewfull-timeoperatorpositionwillbesplit betweentheWaterFundandSewageFund.Similartoprioryears,operatingtransfersoutwillretire debtserviceforwatersystemimprovementsindebtservicefunds.However,the2016budget includesa$1,000,000operatingtransfertotheCapitalProjectsFundforthecorestreet reconstructionproject.Theotherbudgetitemsareexpectedtoremainclosetoprioryearlevels. BUDGET: WATERFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits 970 1,920 2,735 3,700 3,700 3,700 0.0% IntergovernmentalRevenues --------- ChargesforServices 1,146,604 1,170,787 1,042,343 1,146,800 1,070,800 1,146,800 0.0% Fines&Forfeits --------- SpecialAssessments 158,319 44,339 40,440 30,000 30,000 30,000 0.0% Miscellaneous 194,675 (36,171)230,817 71,000 57,000 71,000 0.0% ContributedCapital --81,362 80,000 257,000 80,000 0.0% OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 1,500,568$1,180,875$1,397,697$1,331,500$1,418,500$1,331,500$0.0% EXPENDITURES Personnel Services 217,412$212,410$188,151$281,134$281,134$304,153$8.2% Supplies 122,659 82,194 160,665 166,150 166,150 167,350 0.7% Other Services &Charges 251,695 195,257 221,750 285,263 268,263 311,305 9.1% Capital Outlay 3,375 318,708 11,656 355,000 355,000 358,000 0.8% Debt Service Operating Transfers 207,219 413,500 631,560 558,264 837,064 1,650,000 195.6% TOTAL EXPENDITURES 802,360$1,222,069$1,213,782$1,645,811$1,907,611$2,790,808$69.6% FUND BALANCE -JANUARY 1 3,910,484$4,608,692$4,567,498$4,751,413$4,751,413$4,262,302$ Exc ess (Deficienc y)of Revenues over Expenditures 698,208 (41,194)183,915 (314,311)(489,111)(1,459,308) FUND BALANCE -DECEMBER 31 4,608,692$4,567,498$4,751,413$4,437,102$4,262,302$2,802,994$ 193 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 2012 2013 2014 2015 2016 Collection Sewermainsmaintained 1/4city 1/4city 17miles28miles20miles Liftstations 7 7 7 7 7 Sewermainlocates 300 300 300 300 300 GPSsewersystem 1/8city1/8city1/8city1/8city 0 Manholesmaintained 600 600 356 716 500 Newservicehookups 20 20 76 100 60 Sewerservicestelevised 1/8city 1/8city 1/8city 26Miles 20miles 194 BUDGETCOMMENTARY: TheSewageFund’smainsourceofrevenueisusercharges.In2013and2015,sewagecustomeruser rateswereincreasedby10%and5%,respectively.Capitaloutlaysfor2016includedtreatmentplant upgradesof$2,333,000,includingphosphorousreductionanddigestercoverimprovements.The fundingmixforplantupgradesincludesaloanfromtheMinnesotaPublicFacilitiesAuthority.The 2016personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%inJuly) marketratewageadjustmentincrease.The2014declineinpersonnelservicesreflectstheshiftingof dutiesandresponsibilitiesresultingfromthepublicworksdirectorvacancy.In2016,onenewfull- timeoperatorpositionwillbesplitbetweentheWaterFundandSewageFund.Similartoprioryears, operatingtransfersoutwerebudgetedtoretiredebtserviceforsystemimprovements.Otherbudget itemsareexpectedtoremainclosetoprioryearlevels. BUDGET: SEWAGEFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE Propertytaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,853,141 1,981,967 2,047,789 2,050,500 2,020,500 2,050,500 0.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 135,999 (23,047)195,867 62,000 37,000 62,000 0.0% ContributedCapital --885,132 60,450 763,565 60,450 0.0% OperatingTransfers --------- DebtProceeds 1,436 3,003,224 -3,322,000 1,400,000 2,000,000 -39.8% TOTALREVENUES 1,990,576$4,962,144$3,128,788$5,494,950$4,221,065$4,172,950$-24.1% EXPENDITURES PersonnelServices 283,869$263,020$242,621$281,945$281,945$307,175$8.9% Supplies 21,774 16,057 22,132 28,950 28,950 24,650 -14.9% OtherServices&Charges 1,049,425 997,338 1,305,025 1,269,290 1,168,290 1,231,201 -3.0% CapitalOutlay 79,019 2,935,299 127,857 3,677,000 1,605,000 2,333,000 -36.6% DebtService 109,981 172,259 364,963 359,698 359,698 492,198 36.8% OperatingTransfers --1,690,672 574,672 1,473,672 425,134 -26.0% TOTALEXPENDITURES 1,544,068$4,383,973$3,753,270$6,191,555$4,917,555$4,813,358$-22.3% FUNDBALANCE-JANUARY1 2,742,706$3,189,214$3,767,385$3,142,903$3,142,903$2,446,413$ Excess(Deficiency)of RevenuesoverExpenditures 446,508 578,171 (624,482)(696,605)(696,490)(640,408) FUNDBALANCE-DECEMBER31 3,189,214$3,767,385$3,142,903$2,446,298$2,446,413$1,806,005$ 195 SEWAGETREATMENTPLANT(WWTP)DIVISION: SewageTreatmentPlant(orWastewatertreatmentplant)activityprovidesfortheoperationofthe facilitythatcollectsandtreatsallsewagefromthecity'ssanitarysewersystem.Thesewage treatmentplantisownedbythecity,buttheoperationsarecontractedouttoaprivatecompany. The2016budgetforcontractedplantserviceis$727,740—noincreaseover2015.Thecontracthas threereimbursableamounts(sludgehauling,repairs&maintenance,chemicals).Higherbudgeted reimbursableamountsreducethelikelihoodofsignificantbudget-to-actualreconciliationcosts. BUDGET: SEWAGEFUND 2012 2013 2014 2015 2015 2016 % TREATMENTPLANT Actual Actual Actual Budget Projected Budget Change PersonnelServices 117$400$379$1,227$1,227$1,227$0.0% Supplies 19 88 -250 250 250 0.0% OtherServices&Charges 917,020 936,374 1,219,391 1,043,689 1,042,689 1,052,128 0.8% CapitalOutlay -2,935,299 127,857 3,322,000 1,400,000 2,000,000 -39.8% DebtService OperatingTransfers --------- TOTALEXPENDITURES 917,156$3,872,161$1,347,627$4,367,166$2,444,166$3,053,605$-30.1% SANITARYSEWEROPERATIONSDIVISION: Sanitaryseweroperationsencompasstheoperationandmaintenanceofthesanitarysewersystem, whichconsistsofthesewermainsandliftstationsthattransportwastetothesewagetreatment plant(orWWTP).Transfersouttodebtservicefundsrepresenttheexhaustionofimpactfees formerlyaccountedforintheSanitarySewerAccessFund.The2015projectedtransfersinclude abovebudgetaccesscharges,whicharetransferredwhenavailable.Capitaloutlaysincludeatruck andannualtrunkimprovements. BUDGET: SEWAGEFUND 2012 2013 2014 2015 2015 2016 % SEWEROPERATIONS Actual Actual Actual Budget Projected Budget Change PersonnelServices 283,752$262,620$242,242$280,718$280,718$305,948$9.0% Supplies 21,755 15,969 22,132 28,700 28,700 24,400 -15.0% OtherServices&Charges 132,405 60,964 85,634 225,601 125,601 179,073 -20.6% CapitalOutlay 79,019 --355,000 205,000 333,000 -6.2% DebtService 109,981 172,259 364,963 359,698 359,698 492,198 OperatingTransfers --1,690,672 574,672 1,473,672 425,134 -26.0% TOTALEXPENDITURES 626,912$511,812$2,405,643$1,824,389$2,473,389$1,759,753$-3.5% 196 REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 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 305,000$18,500$323,500$ GOBonds,Series2007A(RevenuePortion) Payable Principal Interest Rate Total 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 2,640,000$539,960$3,179,960$ GOWastewaterTreatmentBonds,Series2013B 197 LIQUORFUND DEPARTMENT:LiquorFund SUPERVISOR:LiquorStoreManager/FinanceDirector FUND#:609 ACTIVITY#:49750 ACTIVITYSCOPE: TheLiquorFundprovidescustomerswiththeopportunitytopurchasealcoholandotherrelated products.Profitsfromstoreoperationsareusedtosupportothercityfundsandactivities. OBJECTIVES: 1.Improveproductselection. 2.Enhancealcoholtrainingprogramforallliquorstoreemployees. 3.Elevatestoreattractivenessthroughcustomerfocusedimprovements. 4.Boostsalestoexistingcustomer. 5.Increasesalespertransaction. 6.Growcustomerbaseandsalesbyaggressivelymarketingthestore. ISSUES: 1.Promoteandcontrolthesafeandresponsiblesaleofalcohol. 2.Competitivepricing. 3.Staffturnover. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Grossprofit 1,214,918$1,318,276$1,289,040$1,494,856$1,500,000$ Grossprofit%ofsales 25%26%25%27%26% Salespersquarefoot $529 $551 $587 $624 $624 Winetastingticketssold 400 400 400 300 300 Totalnumberofsales 226,891 229,406 229,375 237,535 240,000 Staffhoursworked 19,446 21,118 19,385 19,811 19,800 Salesperhourworked 11.7 10.9 11.8 12.0 12.1 Averagesale(includingtax)$23.36$24.16 $24.60 $25.24 $25.50 BUDGETCOMMENTARY: Hi-WayLiquorshascontinuedtobeaself-supportingcityenterprisefund,withprofitsdirected towardspecialprojects.Consequently,thishelpkeeppropertytaxeslower.Revenuesaregenerated bysaleofalcoholicbeveragesandmerchandiserelatedtotheliquorindustry.In2016,theLiquor 198 Fundisslatedtoprovide$350,000totheFiberOpticsFund.Additionally,thebulkoftheoperating transfersfor2013,2014and2015wenttotheFiberOpticsFund.The2016personnelservicesbudget includesafullstepincreaseanda3%(2%inJanuaryand1%inJuly)marketratewageincrease. Capitaloutlaysfor2016includeparkinglotimprovements.Budgetedrevenuesareconservatively estimated. BUDGET: LIQUORFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE SaleofGoods 4,854,798$5,085,925$5,165,737$4,973,000$5,213,833$5,367,710$7.9% Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices --------- Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous (9,161)(7,596)13,709 5,000 5,000 5,000 0.0% ContributedCapital --------- OperatingTransfers --------- DebtProceeds --------- TOTALREVENUES 4,845,637$5,078,329$5,179,446$4,978,000$5,218,833$5,372,710$7.9% EXPENDITURES PersonnelServices 422,579$441,640$455,647$509,082$533,082$532,654$4.6% Supplies 3,627,138 3,759,667 3,865,883 3,739,390 3,954,390 4,045,798 8.2% OtherServices&Charges 200,897 209,149 202,811 231,387 232,387 235,214 1.7% CapitalOutlay 16,234 --125,000 -75,000 -40.0% DebtService OperatingTransfers 3,500,000 650,000 600,000 450,000 450,000 350,000 -22.2% TOTALEXPENDITURES 7,766,848$5,060,456$5,124,341$5,054,859$5,169,859$5,238,666$3.6% FUNDBALANCE-JANUARY1 3,570,876$649,665$667,538$722,643$722,643$771,617$ Excess(Deficiency)of RevenuesoverExpenditures (2,921,211)17,873 55,105 (76,859)48,974 134,044$ FUNDBALANCE-DECEMBER31 649,665$667,538$722,643$645,784$771,617$905,661$ 199 DEPUTYREGISTRARFUND DEPARTMENT:DeputyRegistrar(DMV) SUPERVISOR:FinanceDirector FUND#:217 ACTIVITY#:41990 ACTIVITYSCOPE: TheDeputyRegistrar(DMV)isacity-basedserviceentity,whichassistscustomerswiththepurchase ofvehiclelicenseplates/tabs,DNRlicensesandotherlicensesasrequiredbytheStateofMinnesota. TheDMVisoneoffourlimiteddriver’slicenseagentsinWrightCounty.Alimitedagentcanprocess changeofaddressandlostlicenseapplicationsfordriver’slicenses. OBJECTIVES: 1.MarketingDMVservicestopublicanddealerships. 2.Addandimprovecustomerservice. 3.Updateemployeetrainingandcertifications. ISSUES: 1.Changestostatelicensingregulations. 2.Availabilityofstateequipmentduringlicenseprocessing. 3.Providingservicesprovidinglittleornorevenue. 4.Economicpressuresonvariouscustomers,includingdealerships. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Motorvehicletransactions 56,211 55,26160,05164,92762,000 DNRtransactions 5,4655,727 5,949 5,914 6,000 Game&Fishtransactions 509 445 433 387 500 Driver'slicensetransactions 814 951 1,462 1,294 1,500 Totaltransactions 62,999 62,384 67,895 72,522 70,000 Staffhours 10,736 10,491 11,606 10,834 10,500 Transactionsperhour 5.9 5.9 5.8 6.7 6.7 Dealershipsserviced 38 38 38 38 38 200 BUDGETCOMMENTARY: ThemainrevenuesourcefortheDMVisthefeeschargedfortheissuanceofvariouslicenses.In 2009,theDMVbeganpartialdriver’slicenseservicesandthisrevenuestreamcontinuestogrow.The citytransferred$325,000tootherfundstoreduceinterfundloansin2012.The2013and2014 operatingtransfersrepresentedcontributionstocommunitycenterprojects.The2016personnel servicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%inJuly)marketrate wageadjustmentincrease.Thisfundwaspreviouslyaccountedforasaspecialrevenuefund. Revenuesarealwaysestimatedconservatively. BUDGET: DEPUTYREGISTRAR 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 455,293 456,285 497,709 400,050 500,050 400,100 0.0% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 12,105 (2,089)10,825 1,000 6,000 1,000 0.0% OperatingTransfers --------- TOTALREVENUES 467,398$454,196$508,534$401,050$506,050$401,100$0.0% EXPENDITURES PersonnelServices 264,045$269,045$254,363$287,851$287,851$313,561$8.9% Supplies 4,900 8,601 10,572 15,050 13,700 16,250 8.0% OtherServices&Charges 13,313 23,861 34,587 40,528 40,829 41,605 2.7% CapitalOutlay --------- OperatingTransfers 325,000 75,000 50,000 ------ TOTALEXPENDITURES 607,258$376,507$349,522$343,429$342,380$371,416$8.1% FUNDBALANCE-JANUARY1 250,624$110,764$188,453$347,465$347,465$511,135$ Excess(Deficiency)of RevenuesoverExpenditures (139,860)77,689 159,012 57,621 163,670 29,684 FUNDBALANCE-DECEMBER31 110,764$188,453$347,465$405,086$511,135$540,819$ 201 FIBEROPTICSFUND DEPARTMENT:FiberOpticsFund SUPERVISOR:CityAdministrator FUND#:656 ACTIVITY#:49870-49877 ACTIVITYSCOPE: Aswithallenterprisefunds,theFiberOpticsFundgoalistobecomeaself-sustainingenterprise fund.FiberOpticsdelivershighspeedinternet,phoneandcabletelevisionservicestocustomers withinthecity.Residentialandcommercialcustomerscansubscribetoanyoftheservices individuallyoraspartofapackage. OBJECTIVES: 1.Offeravarietyofinternetspeedsandcablepackagestocustomers. 2.Increasesubscribersandsubscriptions. 3.Minimizesubsidyfromotherfunds. ISSUES: 1.Competitionfromserviceproviders. 2.Industrychanges(cordcutting,etc.). 3.Variouslegalaspectsofoperatingatelecommunicationbusiness. MEASURABLEWORKLOADDATA: Measurement 2012 2013 2014 2015 2016 Internetsubscibers 1,257 1,289 1,360 1,424 1,500 Phonesubscribers*1,109 976 582 518 500 CableTVsubscribers 997 860 813 714 650 *Priorto2014,dataincludedmultiplelines. BUDGETCOMMENTARY: TheFiberOpticsFundbeganoperationsin2009andconstructionofthefiberopticnetworkwas completedin2010.Revenuescomefromchargestosubscribersandexpendituresareincurredasa resultofoperatingthesystemandnewcustomerserviceinstallations.Thecitydefaultedonthe revenuebondsusedtofinanceconstructionofthesystem.Judgmentbondswereissuedtofinance thesettlementwithrevenuebondholders.Propertytaxesareleviedtosupportdebtserviceon judgmentbonds.ThereisnocurrentdebtservicerecordedintheFiberOpticsFund. 202 In2012,thecitytransferred$4,450,000tothefund,reducinganinterfundloanbalance.In2013,the LiquorFundandothercityfundstransferred$860,000intotheFiberOpticsFund.In2014,theLiquor Fundprovided$600,000forFiberOpticsoperations.The2016budgetincludesa$350,000transfer fromtheLiquorFund. The2016personnelservicesbudgetincludesafullstepincreaseanda3%(2%inJanuaryand1%in July)marketratewageadjustmentincrease.Anewbusinessmanagerpositionisincludedin personnelservicewithwagesandbenefitsofapproximately$90,000.Feeincreasesarereflectedin thechargesforservices. BUDGET: FIBEROPTICS 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices 1,765,457 1,595,490 1,635,943 1,639,184 1,685,600 1,643,670 0.3% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous 202,375 668,094 122,710 12,400 46,400 46,779 277.3% ContributedCapital --------- OperatingTransfers 4,450,000 860,000 6,383,732 450,000 450,000 350,000 -22.2% DebtProceeds 1,003,262 -------- TOTALREVENUES 7,421,094$3,123,584$8,142,385$2,101,584$2,182,000$2,040,449$-2.9% EXPENDITURES PersonnelServices 639,646$445,423$480,585$484,466$494,466$640,185$32.1% Supplies 105,496 166,060 145,304 246,660 231,660 131,488 -46.7% OtherServices&Charges 2,189,008 1,790,009 1,742,265 1,249,530 1,322,530 1,264,139 1.2% CapitalOutlay -226,667 -120,000 ---100.0% DebtService 938,053 642,620 5,689,322 ------ OperatingTransfers --------- TOTALEXPENDITURES 3,872,203$3,270,779$8,057,476$2,100,656$2,048,656$2,035,812$-3.1% FUNDBALANCE-JANUARY1 (3,324,639)$224,252$77,057$161,966$161,966$295,310$ Excess(Deficiency)of RevenuesoverExpenditures 3,548,891 (147,195)84,909 928 133,344 4,637 FUNDBALANCE-DECEMBER31 224,252$77,057$161,966$162,894$295,310$299,947$ 203 Thispageintentionallyleftblank 204 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 INTERNAL SERVICE FUNDS INTERNALSERVICEFUNDS-SUMMARY DESCRIPTION Internalservicefundsareaproprietaryfundtypethatmaybeusedtoreportanyactivitythatprovidesgoodsor 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 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices -187,535 364,608 431,701 420,901 503,581 16.7% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous -(5,862)45,391 5,210 16,000 5,263 1.0% OperatingTransfers -530,663 ------- DebtProceeds -500,000 515,000 ------ TOTALREVENUES -$1,212,336$924,999$436,911$436,901$508,844$16.5% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies -7,473 22,803 35,600 35,600 32,200 -9.6% OtherServices&Charges -112,983 195,917 232,500 232,500 256,780 10.4% CapitalOutlay -112,013 589,853 299,500 234,500 461,000 53.9% DebtService -59,297 66,992 77,760 77,760 131,260 68.8% OperatingTransfers --------- TOTALEXPENDITURES -$291,766$875,565$645,360$580,360$881,240$36.6% FUNDBALANCE-JANUARY1 -$-$920,570$970,004$970,004$826,545$ Excess(Deficiency)of RevenuesoverExpenditures -920,570 49,434 (208,449)(143,459)(372,396) FUNDBALANCE-DECEMBER31 -$920,570$970,004$761,555$826,545$454,149$ 205 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 2012 2013 2014 2015 2016 Outcome/Effectiveness: Networkuptime 99%99%99%99% Numberofclosedrequests 322 348 385 370 450 Efficiency: Opentoclosedrequestsratio 99%99%99%100%100% WorkLoad: Numberofhelpdeskrequests 326 352 389 370 450 Numberofclients/users 60 56 70 102 103 NumberofPC,servers,and networkdevices 95 100 131 145 147 206 BUDGETCOMMENTARY: TheITServicesFund’smainsourceofrevenueisinternalusercharges.Thefundwasinitiatedinthe middleof2013. BUDGET: ITSERVICES 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices -125,000 252,708 278,101 278,101 298,981 7.5% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous -(136)2,864 100 1,000 153 53.0% OperatingTransfers -30,000 ------- DebtProceeds --------- TOTALREVENUES -$154,864$255,572$278,201$279,101$299,134$7.5% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies -7,473 22,803 35,600 35,600 32,200 -9.6% OtherServices&Charges -108,416 195,917 232,500 232,500 256,780 10.4% CapitalOutlay -17,013 -10,000 10,000 10,000 0.0% DebtService --------- OperatingTransfers --------- TOTALEXPENDITURES -$132,902$218,720$278,100$278,100$298,980$7.5% FUNDBALANCE-JANUARY1 -$-$21,962$58,814$58,814$59,815$ Excess(Deficiency)of RevenuesoverExpenditures -21,962 36,852 101 1,001 154 FUNDBALANCE-DECEMBER31 -$21,962$58,814$58,915$59,815$59,969$ 207 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 2012 2013 2014 2015 2016 Outcome/Effectiveness: Annualcostrecovery 15,800$111,900$142,800$204,600$ Totalcostsofassetsacquired 95,000$656,491$822,619$1,273,000$ Efficiency: Costrecoveryas%of acquiredassets.17%17%17%16% WorkLoad: Numberofassetsacquired 3 9 12 19 208 BUDGETCOMMENTARY: TheCentralEquipmentFund’smainsourceofrevenueisinternalrentalcharges.Thefundwas initiatednearthebeginningof2013withthesaleof$500,000incertificatesofindebtedness.Thecity alsoissued$515,000inG.O.bondsin2014tofinancetheacquisitionofafiretenderandaplow truck.In2014,theoperatingtransferresultedfromclosingtheCapitalOutlayRevolvingFund.The 2016budgetedequipmentacquisitions:[publicworksequipment]truck-$30,000;skidsteerplow- $12,000;planer-$22,000;router-$22,000;electricsignreader-$10,000;grader(used)-$200,000; [recreationequipment]parktruck-$65,000;CushmanTruckster-$25,000. BUDGET: CENTRALEQUIPMENTFUND 2012 2013 2014 2015 2015 2016 % REVENUES ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PropertyTaxes -$-$-$-$-$-$--- Licenses&Permits --------- IntergovernmentalRevenues --------- ChargesforServices -62,535 111,900 153,600 142,800 204,600 33.2% Fines&Forfeits --------- SpecialAssessments --------- Miscellaneous -(5,726)42,527 5,110 15,000 5,110 0.0% OperatingTransfers -500,663 ------- DebtProceeds -500,000 515,000 ------ TOTALREVENUES -$1,057,472$669,427$158,710$157,800$209,710$32.1% EXPENDITURES PersonnelServices -$-$-$-$-$-$--- Supplies --------- OtherServices&Charges -4,567 ------- CapitalOutlay -95,000 589,853 289,500 224,500 451,000 55.8% DebtService -59,297 66,992 77,760 77,760 131,260 68.8% OperatingTransfers --------- TOTALEXPENDITURES -$158,864$656,845$367,260$302,260$582,260$58.5% FUNDBALANCE-JANUARY1 -$-$898,608$911,190$911,190$766,730$ Excess(Deficiency)of RevenuesoverExpenditures -898,608 12,582 (208,550)(144,460)(372,550) FUNDBALANCE-DECEMBER31 -$898,608$911,190$702,640$766,730$394,180$ 209 REMAININGDEBTSERVICE: Payable Principal Interest Rate Total 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 325,000$17,695$342,695$ GOCertificatesofIndebtedness,Series2013A Payable Principal Interest Rate Total 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 60,000 3,360 2.50%63,360 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 515,000$65,460$580,460$ GOBonds,Series2014A(EquipmentPortion) 210 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 CAPITAL IMPROVEMENT PROGRAM CAPITALIMPROVEMENTPROGRAM INTRODUCTION Thecapitalimprovementspresentedinthissectioncomprisethe2015-2019CapitalImprovements Program(CIP).TheMonticelloCIPintegratescapitalandmajornoncapitalexpendituresintoa comprehensiveplanforforecastingneededfutureresourcesforacquiringandmaintainingassets usedinmunicipaloperations.Byintegratingmajornoncapitalexpenditures,suchasmaintenance itemsorassetpurchasesnotmeetingspecificdollarthresholds,thecitycanbetterplanandprepare forfuturefinancialchallenges. TheMonticellointegrativeCIPhasfourexpenditurecategories:capitalimprovements,vehiclesand equipment(Garage),majorrepairandmaintenanceitems(FirstAidKit),andsmalltoolsand equipment(ToolBox). TheCapitalImprovementscategoryprimarilydealswithprojectsthatcarryhighpricetags.Inthe simplestofterms,capitalimprovementsareexpansionsoforimprovementstothecity'sphysical structuresuchasbuildings,streets,sidewalks,parkingfacilities,openspace,andutilitysystems (infrastructure). TheGaragecategorycontainscapitaloutlaysforvehiclesandequipmentessentialtoaccomplishing work.Generally,theseassetshaveshorterusefullivesandmustbereplacedonaregularly scheduledbasis. TheFirstAidKitcategoryincludesnoncapitalrepairandmaintenanceexpendituresrelatedtothe preservationofexistingassets,suchaspaintingawatertank.Additionally,expendituresonprojects thatdonotmeetcertaincapitalizationthresholdsareconsideredrepairsandmaintenance. TheToolBoxcategoryiscomprisedofmajornoncapitalsmalltoolandequipmentpurchases.For example,thepurchaseofmultiplesimilaritemsthatindividuallydonotexceedthecapitalization thresholdwouldbeincludedinthissection. Q&A WHATISACAPITALIMPROVEMENTPROGRAM? Acapitalimprovementprogramisafiveyearplanfortheevaluationofthecity'sfacility,equipment andinfrastructureneeds.Itservesasaguideforconstruction,developmentandmaintenanceofthe city'sinfrastructureassets--aswellasotherlessexpensiveassets--inthemostcostefficientmanner possible.Itistheresultofsystematicreviewofeachprojectasitrelatestothecitycouncilgoalsand theestablishedpriorityscheme,tomaximizetheuseofallfinancialresources. 211 Whiletheprogramservesasalongrangeplan,itisreviewedannuallyandrevisedbasedoncurrent circumstancesandopportunities.Prioritiesmaybechangedduetograntopportunitiesor 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. 212 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(community center-usagefees,programfees) ·Communitygoalreferences(refertoyourbudgetdocument) ·Safetyrequirements. 213 DocumentOperatingImpact Thisisarequiredfield;projectsarenotacceptedwithoutit.Recordthecostsintheyeartheywill initiallyoccur.Itwillbeassumedthatthecostcontinuesfromthatpointon,unlessinformationis providedotherwise.Thefollowingpossibilitiesexist: ·Maintenanceprojectthatdoesn’trequireanymorethanisalreadyinthebudgetfor maintenance. ·Maintenanceprojectthatreplacesexistingitemswithamorecosteffectivematerialordevice thatwouldresultinaslightsavingsinoperatingdollars.Examples:moreenergyefficientHVAC unitresultinginanelectricitysavings. ·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. 214 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. 215 HOWISTHECAPITALIMPROVEMENTPROGRAMFINANCED? Inanalyzingthefinancialviabilityofthecapitalimprovementsinthe2015-2019CIPthecityhasthree basicchoicesformethodsoffinancing:pay-as-you-go,jointpoweragreementdevelopment authoritycapitalleasing,anddebtfinancing.Thefollowingsourcesproviderevenueforthethree financingmethods. GeneralFundrevenues,suchaspropertytaxes,localgovernmentaid,andservicechargesarecurrent revenuesusedtofinancerelativelysmallcapitaloutlays. Aninternalservicefund(CentralEquipmentFund)hasbeenestablishedtoaccumulateresourcesfor regularlyplannedequipmentpurchasesthroughrentalchargestovariousdivisionswithinbenefitting funds.Thiswillreducetheimpactoflargeequipmentpurchasesonannualbudgetunitexpenditures byessentiallyamortizingthecostofsuchequipmenttothedivisionthroughrentalcharges.The rentalchargesincludeasmallinflationfactortoprovideforthefuturereplacementofthatitem.This fundwillreplacetheCapitalOutlayRevolvingFund.Similarly,ahybridoftheaforementionedfund hasbeenestablishedforITServices,whichwillalsoincludeequipmentpurchases. Enterprisefundrevenues,whicharederivedfromusercharges,areusedtofinancecapital improvementsandequipmentnecessaryfordeliveringaspecificservice.Additionally,accumulated revenuesinenterprisefundscanbetransferredtootherfundstoprovidefinancingforcapitalasset acquisitions. Debtissuanceisusedtofinancelargecapitalimprovements.Generalobligationimprovementbonds andgeneralobligationrevenuebondsareusedtofinanceimprovementstothecity’sinfrastructure. ManyoftheitemsidentifyingtheCapitalProjectFundasfundingsourcewillneedsomelevelofdebt issuancetocometofruition. Federalandstategrantsprovidefundingforvariouscapitalimprovementprojects.Currently,the citywilldedicateover$1.2millionofitsstate-aidstreetfundstowardvariousprojectsincludingthe TH25/CSAH75intersectionandFallonAvenueoverpass.Thecityhasalsocommitted$1.5million fromitsStreetReconstructionFundforthesameandotherprojects.Othersourcesincludegrants, donations,reserves,andothergovernmentalunitsthatshareboundaries. 216 ItemslistedonthefollowingpagesaretypicallylabeledwithprefixesVEQ-forvehiclesand equipment,MNC-(majornon-capital)repairs&maintenance,STE-forsmalltoolsandequipment.All otherlabelprefixesrepresentcapitalimprovements.Thebelowgraphandtableprovidesa breakdownofexpenditureswithintheCIP: $- $4 $8 $12 $16 $20 $24 $28 2016 2017 2018 2019 2020 Millions Expenditures-IntegratedCIPforFY2016-2020 CapitalImprovements Garage(CapitalEquipment)FirstAidKit(RepairsandMaintenance)ToolBox(SmallToolsandEquipment) ExpenditureCategory 2016 2017 2018 2019 2020 CapitalImprovements 14,437,000$9,581,500$6,615,000$21,675,000$8,200,000$ Garage (CapitalEquipment)547,000 1,810,000 2,015,000 2,072,000 930,600 FirstAidKit (RepairsandMaintenance)360,200 378,000 350,000 215,000 215,000 ToolBox (SmallToolsandEquipment)78,600 58,300 83,000 49,200 42,900 15,422,800$11,827,800$9,063,000$24,011,200$9,388,500$ 217 CapitalImprovementPlan CityofMonticello,Minnesota FUNDINGSOURCESUMMARY 2016 thru 2020 TotalSource20162017201820192020 CapitalEquipmentFund 4,063,000386,000 960,000 535,000 1,527,000 655,000 CapitalProjectFund 9,235,000250,000 2,090,000 3,520,000 3,375,000 CommunityCenterFund 1,985,500111,500 1,306,500 426,000 134,000 7,500 DebtProceeds 35,215,0006,880,000 4,890,000 1,845,000 14,100,000 7,500,000 DMVFund 20,00020,000 FederalAid 851,000851,000 GeneralFund 1,285,000338,000 250,000 257,000 220,000 220,000 ITServicesFund 153,20032,800 29,800 30,000 30,200 30,400 MNDOTCIMS 506,000406,000 100,000 MunicipalLiquorFund 1,625,000100,000 1,525,000 Parks&PathwaysFund 1,902,000700,500 66,500 245,000 845,000 45,000 SewageFund 2,808,600333,000 975,000 275,000 675,000 550,600 StateAid 2,000,0001,750,000 50,000 200,000 StormwaterAccessFund 1,650,00090,000 190,000 1,190,000 90,000 90,000 StreetConstructionFund 1,750,0001,350,000 150,000 250,000 StreetLightingFund 835,000335,000 275,000 75,000 75,000 75,000 WaterFund 3,589,0001,399,000 345,000 215,000 1,415,000 215,000 WrightCounty 90,00090,000 15,422,800 11,677,800 9,063,000 24,011,200 9,388,500 69,563,300GRANDTOTAL ProducedUsingthePlan-ItCapitalPlanningSoftware 218 CapitalImprovementPlan CityofMonticello,Minnesota PROJECTS&FUNDINGSOURCESBYDEPARTMENT 2016 2020thru Total20162017201820192020DepartmentProject#Priority CommunityCenter 1,985,500111,500 1,306,500 426,000 134,000 7,500CommunityCenterFund 1,985,500111,500 1,306,500 426,000 134,000 7,500CommunityCenterTotal 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 45,00045,000Carpet3 MNC-13-010 20,00010,000 10,000VanityandPartitionReplacement3 MNC-13-013 50,00050,000DiamondBritePoolResurface2 MNC-13-014 167,00014,000 133,000 20,000MechanicalImprovements2 MNC-16-005 30,00030,000RestoreWalkTrack3 STE-13-013 68,5007,500 7,500 36,000 10,000 7,500RecreationEquipment3 STE-13-014 4,0004,000TableCovers3 STE-13-015 10,0005,000 5,000Tables3 STE-13-016 4,0004,000PatioFurniture3 STE-15-001 12,00012,000SecurityCameraUpgrade3 VEQ-13-045 15,00015,000Dishwasher2 VEQ-13-060 220,000100,000 120,000PoolToy3 1,985,500111,500 1,306,500 426,000 134,000 7,500CommunityCenterTotal DMV-DeputyRegistrar 20,00020,000DMVFund 20,00020,000DMV-DeputyRegistrarTotal VEQ-13-047 20,00020,000DMVVehicle2 20,00020,000DMV-DeputyRegistrarTotal Fire&Rescue FRD-13-001 250,000250,000FireStationAddition2 FRD-13-002 3,000,0003,000,000NewFireStation2 MNC-16-004 15,00015,000Generator2 STE-13-006 25,0005,000 5,000 5,000 5,000 5,000SCBAPacks2 ProducedUsingthePlan-ItCapitalPlanningSoftware 219 Total20162017201820192020DepartmentProject#Priority 1,100,0001,100,000CapitalEquipmentFund 3,250,0003,250,000CapitalProjectFund 55,00035,000 5,000 5,000 5,000 5,000GeneralFund 4,405,00035,000 5,000 5,000 4,355,000 5,000Fire&RescueTotal STE-16-002 15,00015,000TurnoutGear1 VEQ-13-006 1,100,0001,100,000FireLadderTruck2 4,405,00035,000 5,000 5,000 4,355,000 5,000Fire&RescueTotal ITServices 153,20032,800 29,800 30,000 30,200 30,400ITServicesFund 153,20032,800 29,800 30,000 30,200 30,400ITServicesTotal STE-13-001 73,20010,800 15,600 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 17,0003,000 3,200 3,400 3,600 3,800PavementManagementSoftware2 153,20032,800 29,800 30,000 30,200 30,400ITServicesTotal MunicipalLiquor 1,625,000100,000 1,525,000MunicipalLiquorFund 1,625,000100,000 1,525,000MunicipalLiquorTotal LIQ-13-002 75,00075,000ParkingLotImprovements2 LIQ-13-003 1,500,0001,500,000LiquorStore-#2 3 VEQ-13-046 50,00025,000 25,000LiquorStoreCoolers2 1,625,000100,000 1,525,000MunicipalLiquorTotal PublicWorks MNC-15-004 90,00030,000 30,000 30,000StopLightPainting3 MNC-15-005 16,00016,000StreetBanners4 PWK-13-001 12,000,0009,000,000 3,000,000PublicWorksFacility3 PWK-13-002 200,000200,000PWFacilityLandAcquisition3 STE-13-011 7,0007,000Generator2 VEQ-13-013 65,00065,000One-TonTruck 2 VEQ-13-014 65,00030,000 35,000Truck-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 ProducedUsingthePlan-ItCapitalPlanningSoftware 220 Total20162017201820192020DepartmentProject#Priority 2,373,000296,000 580,000 535,000 387,000 575,000CapitalEquipmentFund 200,000200,000CapitalProjectFund 12,000,0009,000,000 3,000,000DebtProceeds 113,00046,000 30,000 37,000GeneralFund 14,686,000342,000 610,000 772,000 9,387,000 3,575,000PublicWorksTotal VEQ-13-019 20,00020,000ConcreteSaw2 VEQ-13-021 95,00095,000Backhoe2 VEQ-13-022 480,000225,000 255,000PlowTruck2 VEQ-13-023 65,00065,000One-TonTruckandPlow 2 VEQ-13-025 142,000142,000SnowGoSnowBlower2 VEQ-13-026 65,00065,000SkidSteereLoader2 VEQ-13-027 35,00035,000SignLabSystem2 VEQ-13-028 20,00020,000PaverTrailer2 VEQ-14-001 445,000220,000 225,000WheelLoader-3yd.3 VEQ-14-002 200,000200,000StreetSweeper3 VEQ-14-003 80,00080,000BlacktopHotBox3 VEQ-16-001 10,00010,000ElectronicSignReader3 VEQ-16-002 12,00012,000SkidSteereSnowPlow2 VEQ-16-004 50,00050,000HotRubberMelter-CrackSealer 2 VEQ-16-005 15,00015,000MiniTankTackTrailer3 VEQ-16-006 60,00060,000MidSizeLoader2 VEQ-16-007 200,000200,000Grader3 14,686,000342,000 610,000 772,000 9,387,000 3,575,000PublicWorksTotal Recreation&Culture MNC-16-001 2,0002,000BallfieldFencing3 MNC-16-002 6,5006,500OtterCreekGazebo3 MNC-16-003 8,2008,200EllisonParkBoardingDock3 PAR-13-002 60,00060,000FeatherstoneParkDevelopment3 PAR-13-003 10,00010,000SunsetPondsShelter3 PAR-13-004 90,00090,000PioneerPark-BandShell 3 PAR-13-005 36,50015,000 21,500PlaygroundEquipment2 PAR-13-006 17,50017,500MontiHillParkDevelopment2 PAR-13-007 200,00040,000 40,000 40,000 40,000 40,000PathwayImprovemnents(Annual)2 PAR-13-008 563,000563,000BertramLakesLandAcquisition2 PAR-13-010 25,0005,000 5,000 5,000 5,000 5,000BCOLImprovements3 PAR-13-012 2,200,000200,000 2,000,000BCOLBallFields3 PAR-13-013 250,000250,000EllisonParkLogShelter3 PAR-13-014 60,00060,000CSAH75PathwayLighting3 PAR-15-001 15,00015,000MeadowOaksDogPark3 PAR-15-003 45,00045,000SpiritHill-WildwoodPathwayConnection 3 PAR-15-004 200,000200,000FenningAvenuePathwayConnection3 PAR-15-005 800,000800,000WBridgeSplashPad-EBridgeBandShell 4 PAR-16-001 12,00012,000EllisonParkMemorialProject3 ProducedUsingthePlan-ItCapitalPlanningSoftware 221 Total20162017201820192020DepartmentProject#Priority 590,00090,000 380,000 40,000 80,000CapitalEquipmentFund 2,610,000200,000 260,000 2,150,000CapitalProjectFund 42,00042,000GeneralFund 1,902,000700,500 66,500 245,000 845,000 45,000Parks&PathwaysFund 60,00060,000StreetLightingFund 5,204,0001,092,500 706,500 2,395,000 885,000 125,000Recreation&CultureTotal STE-13-012 3,0003,000SodCutter2 STE-16-001 4,0004,000ParkTablesandBenches3 STE-16-003 6,3006,300WBWeeNotesPackage3 VEQ-13-031 35,00035,000ParkMowers2 VEQ-13-032 210,00065,000 65,000 80,000Trucks2 VEQ-13-033 140,000140,000MTTracklessSidewalkMachine2 VEQ-13-037 25,00025,000CushmanTruckster2 VEQ-13-038 35,00035,000Tractor2 VEQ-13-039 105,00065,000 40,000SkidLoader2 VEQ-13-041 25,00025,000ToroInfieldPro50402 VEQ-15-001 15,00015,000Mule-Kawaskireplacement 2 5,204,0001,092,500 706,500 2,395,000 885,000 125,000Recreation&CultureTotal Stormwater\Drainage 1,650,00090,000 190,000 1,190,000 90,000 90,000StormwaterAccessFund 1,650,00090,000 190,000 1,190,000 90,000 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 1,650,00090,000 190,000 1,190,000 90,000 90,000Stormwater\DrainageTotal Streets MNC-13-001 200,00040,000 40,000 40,000 40,000 40,000CityStreetSigns2 MNC-14-001 875,000175,000 175,000 175,000 175,000 175,000AnnualChipSeal2 STR-13-001 500,00050,000 450,000SchoolBlvd/CedarStreetSignalSystem 2 STR-13-002 90,00090,000ParkingLotReconstruction3 STR-13-004 500,000500,000OverlayRuralOutlyingStreets2 STR-13-005 1,500,0001,350,000 150,000E7thStreet/Hwy25Intersection 3 STR-13-006 6,000,0001,200,000 4,320,000 480,000FallonAvenueOverpass3 STR-13-007 3,300,0003,000,000 300,000StreetReconstruction-Area5 3 STR-13-008 1,100,00050,000 940,000 110,000StreetReconstruction-Area6 3 STR-13-009 1,235,00050,000 1,060,000 125,000StreetReconstruction-Area7B 2 STR-13-010 425,00075,000 125,000 75,000 75,000 75,000StreetLightImprovements2 STR-13-014 1,447,0001,347,000 100,000TH25/CSAH75IntersectionImprovements 2 ProducedUsingthePlan-ItCapitalPlanningSoftware 222 Total20162017201820192020DepartmentProject#Priority 3,175,00050,000 1,830,000 1,170,000 125,000CapitalProjectFund 9,050,0003,800,000 4,770,000 480,000DebtProceeds 851,000851,000FederalAid 1,075,000215,000 215,000 215,000 215,000 215,000GeneralFund 506,000406,000 100,000MNDOTCIMS 2,000,0001,750,000 50,000 200,000StateAid 1,750,0001,350,000 150,000 250,000StreetConstructionFund 775,000275,000 275,000 75,000 75,000 75,000StreetLightingFund 90,00090,000WrightCounty 19,272,0008,787,000 7,390,000 2,390,000 415,000 290,000StreetsTotal STR-15-003 150,000150,000ElmStreetSidewalk-3rdStPedestrianBlinker 2 STR-15-004 100,000100,000SidewalkGapImprovementProject(TBD)2 STR-16-001 1,500,0001,350,000 150,000Extensionof95thStreet3 STR-16-002 350,000200,000 150,000FlashingYellowArrowSignal3 19,272,0008,787,000 7,390,000 2,390,000 415,000 290,000StreetsTotal Utility-Sewage 9,665,0003,080,000 120,000 1,365,000 5,100,000DebtProceeds 2,750,600275,000 975,000 275,000 675,000 550,600SewageFund 12,415,6003,355,000 1,095,000 1,640,000 5,775,000 550,600Utility-SewageTotal UTS-13-001 1,950,0001,230,000 270,000 150,000 150,000 150,000AnnnualSewageTrunkImprovements2 UTS-13-002 275,600275,600Liftstation-MarvinRoad 2 UTS-13-004 1,200,0001,200,000WWTPPhosphorusReductionImprovements2 UTS-13-005 1,365,0001,365,000WWTPSolidsHandlingImprovements2 UTS-13-006 5,100,0005,100,000WWTPPhase2Improvements3 UTS-15-001 800,000800,000DigesterCovers(2)1 UTS-16-001 625,000125,000 125,000 125,000 125,000 125,000AnnualWWTPUpgrades2 VEQ-13-001 400,000400,000SewerJetter2 VEQ-13-004 700,000700,000SCADASystem-Sewage 2 12,415,6003,355,000 1,095,000 1,640,000 5,775,000 550,600Utility-SewageTotal Utility-Water UTW-13-001 1,750,0001,150,000 150,000 150,000 150,000 150,000AnnualWaterSystemImprovements3 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 66,00066,000Truck-RegularCab4XChasis+Accessories 2 VEQ-15-005 50,00050,000PublicWorksCartegraph3 ProducedUsingthePlan-ItCapitalPlanningSoftware 223 Total20162017201820192020DepartmentProject#Priority 4,500,0004,500,000DebtProceeds 58,00058,000SewageFund 3,589,0001,399,000 345,000 215,000 1,415,000 215,000WaterFund 8,147,0001,457,000 345,000 215,000 1,415,000 4,715,000Utility-WaterTotal 8,147,0001,457,000 345,000 215,000 1,415,000 4,715,000Utility-WaterTotal 69,563,30015,422,80011,677,800 9,063,00024,011,200 9,388,500GrandTotal ProducedUsingthePlan-ItCapitalPlanningSoftware 224 CIPPROJECT–FALLONAVENUEOVERPASS 225 CIPPROJECT–TH25/7TH STREETINTERSECTION 226 CIPPROJECT–TH25/CSAH75INTERSECTIONIMPROVEMENTS 227 CIPPROJECT–95THSTREETEXTENSION 228 ENTERPRISE FUNDS ForFiscalYear2013 Adopted2016 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] 229 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 Payable2016 StateTaxPayable 2016 ResidentialHomestead: 1st$500,000 1.00%Nostatetax >$500,000 1.25% Non-homesteadResidential: Singleunit: 1st$500,000 1.00%>$500,000 1.25%Nostatetax 2-3unit buildings 1.25% Market-rateApartments:1.25%Nostatetax Commercial/Industrial:Subjecttostate 1st$150,000 1.50%levy(commercial- >$150,000 2.00%industrialrate) SeasonalRecreational Subjecttostate1st$500,000 1.00%levy (seasonal- >$500,000 1.25%recreationalrate) 230 TRUTH-IN-TAXATION TNTSummaryChartforTaxesPayable2016 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.28 Citycouncilsholdmeetingtodiscussthebudgetandpropertytaxlevyand, beforeafinaldetermination,allowspublicinput. Onorbefore Dec.28 Citiesmustcertifyfinalpropertytaxlevytothecountyauditor. 231 DEBTGUIDE EquipmentCertificates/CapitalNotes Astatutorycitymayissuecertificatesofindebtednessorcapitalnotes (Section412.301)topurchase: Publicsafetyequipment,ambulanceandothermedicalequipment,roadconstructionandmain- tenanceequipment,andothercapitalequipment. Computerhardwareandsoftware,whetherbundledwithmachineryorequipmentorunbundled, togetherwithapplicationdevelopmentservicesandtrainingrelatedtotheuseofthecomputer hardwareorsoftware. Thestatutedoesnotdefine“othercapitalequipment”.Citiesseekingtoborrowforequipmentnot specificallylistedshouldworkwithbondcounseltodetermineeligibility. ThetermoftheCertificates/Notescannotexceed10yearsfromthedateddateoftheobligations.This limitationmayaffectthetimingofprincipalandinterestpayments.Thisdebtissubjecttothedebtlimit. Areversereferendumprovisionappliesiftheamountoftheborrowingexceeds0.25%oftheestimated marketvalueoftaxablepropertywithinthecity.Anelectionisrequiredifapetitionsignedbyvotersequal to10%ofthevotersinthelastregularmunicipalelectionissubmittedtothecityclerkwithin10daysafter publicationoftheresolutionauthorizingtheissuanceoftheCertificates/Notes. Differentstatutoryauthorityexistsforhomerulechartercities (Section410.32).CapitalNotesissuedby chartercitiesaresubjecttothesamestatutoryrequirementsasstatutorycitieswiththefollowingex- ceptions: Thetotalprincipalamountofthecapitalnotesissuedinafiscalyearshallnotexceed0.03%ofthe estimatedmarketvalueoftaxablepropertyinthecity. Norereversereferendumprovisionapplies,butissuancemustbeapprovedbytwothirdsvoteof thecitycouncil. Unlessprohibitedbythecharter,thesecitiesmayalsoissueCapitalNotesundertheauthority grantedtostatutorycities. TaxAbatementBonds TaxAbatementBonds (Section469.1814)maybeusedtofinanceavarietyofdevelopmentactivitiesand publicimprovements.ThestatuteallowsproceedsofTaxAbatementBondsbeusedto(1)payforpublic improvementsthatbenefittheproperty,(2)toacquireandconveylandorotherproperty,asprovided underthissection,(3)toreimbursethepropertyownerforthecostofimprovementsmadetothe property,or(4)topaythecostsofissuanceofthebonds.TheseBondsareoftenusedtofacilitate economicdevelopmentinwaysnotallowedbytaxincrementfinancing.Theyhavealsoevolvedintoa toolforfinancingcommunityrecreationandculturalfacilities.Thestatutoryauthoritycreatesan abatementlevybasedonthepropertyvalueofparcelssubjecttotheabatement.Theauthoritytouse taxabatementappliesseparatelytoeachtaxingjurisdiction.Ifotherjurisdictions(countyandschool district)approveanabatement,thisrevenuemaybepledgedtobondsissuedbythecity. TheprincipalamountoftheBondsmaynotexceedthesumoftheauthorizedabatements.Adebt servicelevymaybeusedtopayinterestontheBonds. Theannualamountofallabatementscannotexceedthegreaterof10%nettaxcapacityvalueofthe jurisdictionor$200,000. TheparametersoftheabatementandauthorizationfortheBondsaresetbyresolution.The resolutioncannotbehelduntilafterapublichearing. 232 StreetReconstructionBonds StreetReconstructionBondsareanexampleofdebtissuingauthorityfoundinunusualplaces.Thestatu- toryprovisionsforStreetReconstructionBondsappearintheportionofChapter475dealingwithelec- tionrequirementsfordebtissuance (Section475.58,Subd.3b). StreetReconstructionBondscanbeusedtofinancethereconstructionandbituminousoverlayofexisting citystreets.Eligibleimprovementsmayincludeturnlanesandotherimprovementshavingasubstantial publicsafetyfunction,realignments,othermodificationstointersectwithstateandcountyroads,andthe localshareofstateandcountyroadprojects.Exceptinthecaseofturnlanes,safetyimprovements,re- alignments,intersectionmodifications,andthelocalshareofstateandcountyroadprojects,streetrecon- structionandbituminousoverlaysdoesnotincludetheportionofprojectcostallocabletowideningastreet oraddingcurbsandgutterswherenonepreviouslyexisted.Theenablingstatutesetsforthspecific requirementsfortheissuanceofStreetReconstructionBonds. Theprojectsfinancedunderthisauthoritymustbedescribedinastreetreconstructionplan.Theplan mustdescribethestreetreconstructionoroverlaytobefinanced,theestimatedcosts,andany plannedreconstructionoroverlayofotherstreetsinthemunicipalityoverthenextfiveyears Thecitymustholdapublichearingontheproposedplanandtherelatedissuanceofbonds. Theplanandtheissuanceofbondsmustbeapprovedbythecitycouncilbyavoteofallofthe membersofthegoverningbodypresentatthemeeting. Theissuanceofbondsissubjecttoareversereferendum.Anelectionisrequiredifvotersequalto 5%ofthevotescastinthelastmunicipalgeneralelectionfileapetitionwiththecityclerkwithin30 daysofthepublichearing.Ifthecitydecidesnottoundertakeanelection,itmaynotproposethe issuanceofStreetReconstructionBondsforthesamepurposeandinthesameamountforaperiod of365daysfromthedateofreceiptofthepetition.Ifthequestionofissuingthebondsissubmitted andnotapprovedbythevoters,theprovisionsofsection475.58,subdivision1a,shallapply(no resubmissionforsamepurpose/amountfor180days). StreetReconstructionBondsaresubjecttothedebtlimit. RevenueBonds Oneexceptiontothepreviousstatementistheissuanceofrevenuebonds.Chapter475authorizes borrowingfor“anyutilityorotherpublicconveniencefromwhicharevenueisormaybederived”. Thisauthorityissufficientwhenthesolesecurityisthepledgeofrevenuefromapublicenterprise. Althoughthisdebtismostfrequentlyassociatedwithmunici palutilities,any“publicconvenience” withapledge-ablesourceofrevenuemayusethisauthority. Minnesotacitiesdonotfrequentlyissuerevenuebonds.Mostborrowingneedshaveseparate statutoryauthoritythatallowsageneralobligationpledge.Themostcommonformofrevenuebonds areforelectricutilities,salestaxesandliquorstores. ImprovementBonds OneofthemostcommonlyusedtoolsisGeneralObligation(G.O.)ImprovementBondsissued pursuanttoChapter429.ImprovementBondscanbeissuedforawiderangeofpublicimprovements. EligibleImprovements ThetypesofimprovementsspecificallyauthorizedinChapter429canbefoundin Section429.021.Itis importanttoreadandunderstandthespecificstatutoryprovisions.Someprovisionsarebroaderthan thebasicimprovement.Forexample,a“streetimprovement”mayalsoincludestreetscape(beauti- fication),stormsewersandutilityconnectionlines.Otherprovisionsmaycontainimportantexpansions 233 orlimitationsontheauthority.Sanitaryandstormsewerimprovementsmaybemadeoutsideofthe citylimits. ThepublicimprovementscurrentlyauthorizedinChapter429includethefollowing: 1.Acquire,open,andwidenanystreet,andtoimprovethesamebyconstructing,reconstructing, andmaintainingsidewalks,pavement,gutters,curbs,andvehicleparkingstripsofanymaterial, orbygrading,graveling,oiling,orotherwiseimprovingthesame,includingthebeautification thereofandincludingstormsewersorotherstreetdrainageandconnectionsfromsewer,water, orsimilarmainstocurblines 2.Acquire,develop,construct,reconstruct,extend,andmaintainstormandsanitarysewersandsys- tems,includingoutlets,holdingareasandponds,treatmentplants,pumps,liftstations,service connections,andotherappurtenancesofasewersystem,withinandwithoutthecorporatelimits 3.Construct,reconstruct,extend,andmaintainsteamheatingmains 4.Install,replace,extend,andmaintainstreetlightsandstreetlightingsystemsandspeciallighting systems 5.Acquire,improve,construct,reconstruct,extend,andmaintainwaterworkssystems,including mains,valves,hydrants,serviceconnections,wells,pumps,reservoirs,tanks,treatmentplants, andotherappurtenancesofawaterworkssystem,withinandwithoutthecorporatelimits 6.Acquire,improveandequipparks,openspaceareas,playgrounds,andrecreationalfacilities withinorwithoutthecorporatelimits 7.Planttreesonstreetsandprovidefortheirtrimming,care,andremoval 8.Abatenuisancesandtodrainswamps,marshes,andpondsonpublicorprivatepropertyandto fillthesame 9.Construct,reconstruct,extend,andmaintaindikesandotherfloodcontrolworks 10.Construct,reconstruct,extend,andmaintainretainingwallsandareawalls 11.Acquire,construct,reconstruct,improve,alter,extend,operate,maintain,andpromoteape- destrianskywaysystem.Suchimprovementmaybemadeuponapetitionpursuanttosection 429.031,subdivision3. 12.Acquire,construct,reconstruct,extend,operate,maintain,andpromoteundergroundpedestrian concourses 13.Acquire,construct,improve,alter,extend,operate,maintain,andpromotepublicmalls,plazasor courtyards 14.Construct,reconstruct,extend,andmaintaindistrictheatingsystems 15.Construct,reconstruct,alter,extend,operate,maintain,andpromotefireprotectionsystemsin existingbuildings,butonlyuponapetitionpursuanttosection429.031,subdivision3 16.Acquire,construct,reconstruct,improve,alter,extend,andmaintainhighwaysoundbarriers 17.Improve,construct,reconstruct,extend,andmaintaingasandelectricdistributionfacilitiesowned byamunicipalgasorelectricutility 18.Purchase,install,andmaintainsigns,posts,andothermarkersforaddressingrelatedtotheopera- tionofenhanced911telephoneservice 19.Improve,construct,extend,andmaintainfacilitiesforInternetaccessandothercommunications purposes,ifthecouncilfindsthat:(i)thefacilitiesarenecessarytomakeavailableInternetaccessor othercommunicationsservicesthatarenotandwillnotbeavailablethroughotherprovidersorthe privatemarketinthereasonablyforeseeablefuture;and(ii)theservicetobeprovidedbythefacilities willnotcompetewithserviceprovidedbyprivateentities 20.Assessaffectedpropertyownersforalloraportionofthecostsagreedtowithanelectricutility, telecommunicationscarrier,orcablesystemoperatortoburyoralteraneworexistingdistribution 234 systemwithinthepublicright-of-waythatexceedstheutility’sdesignandconstructionstandards,or thosesetbylaw,tariff,orfranchise,butonlyuponpetitionundersection429.031,subdivision3 21.Assessaffectedpropertyownersforrepaymentofvoluntaryenergyimprovementfinancingsunder section216C.436,subdivision7 Otherstatutesmayalsoauthorizedtheuseofspecialassessmentstopayforimprovements.Forexample, authorizedimprovementswithinaHousingImprovementAreamaybepaidwithspecialassessments MinimumAssessment Generalobligationimprovementbondsrequireaminimum20%assessment.Itisimportanttounder- standthemethodfordeterminingtheminimumassessment.Acommonassumptionisthatassessments mustequalorexceed20%oftheamounttobeborrowed.Whilethiscalculationworksfortaxincrement bonds,the20%calculationforimprovementbondsisdifferent: 1.Theassessmentcalculationisbasedonthecostoftheimprovementtothecity.Thiscostmayor maynotequaltheamountoftheimprovementbonds. 2.Thecostoftheimprovementdoesnotincludeactivitiesthatwillnotbeassessedtobenefitted propertyownersandnotfinancedwithG.O.ImprovementBonds.Theseimprovementscanbemade withoutfollowingtheproceduresofChapter429.Thisexclusiontypicallyappliestoutility(sanitary sewer,watermain,andstormsewer)improvementspaidfromreservesorbondsissuedunder MinnesotaStattutes,Chapter444.. 3.Thecosttothecityexcludesallmoniescontributedbyotherunitsofgovernmenttopayforthe improvement. 4.Theup-frontuseofcitynon-utilityreserves(bothGeneralFundandcapitalimprovement)doesnot reducethecosttothecity. Oneexceptiontothis20%requirementisimprovementsforautomobileparkingfacilities (Section 459.14).Bondsissuedtofinancetheconstructionormaintenanceofautomobileparkingfacilities requirespecialassessmentsinanamountnotlessthan50%oftheamountofthebonds. AssessmentConsiderations StateLawdoesnotprescribeassessmentmethodology.Somecitieshaveformalassessmentpolicies. Othercitiesdealwithassessmentsonaproject-by-projectbasis. Aguidingfactorinsettingassessmentsisthemarketvaluetest.Theamountassessedtoapropertycannot exceedtheincreaseinmarketvalueofthepropertyasaresultoftheimprovement.Thereisno requirementtomakethisfindingaspartoftheimprovementprocess.Theissuecomesintoplayprimarilyin projectswithlargerassessmentsandgreaterriskofappeal. AssessmentsarealsoconstrainedbythenoticeofhearingfortheImprovement.Thetotalamountassessed cannotexceedtheamountstatedinthenotice.Theareaassessedcannotbelarger,butcanbesmaller, thantheareareceivingnoticeofthisHearing. Thespecialassessmentcalculationisbasedonthe“improvement”.Animprovementmaybemorethana singleproject.Therearetwowaystomanagemultipleprojectsintoasingleimprovementforthepurposes ofChapter429.Section429.021,Subd.2 allowsforanimprovementontwoormorestreetsortwoormore typesofimprovementinoronthesamestreetorstreetsordifferentstreetsmaybeincludedinone proceedingandconductedasoneimprovement.Thiscombiningofimprovementsistypicallyspelledoutin theengineeringfeasibilityreportandconsideredattheimprovementhearing.Projectsthatareinstituted separatelymaybesubsequentlycombinedundertheauthorityof Section435.56. Revenuestopaydebtserviceontheportionthatisnotassessedmaycomefromanylegallyavailable sourceincludingapropertytaxlevy. BondIssues PlanningfortheissuanceofImprovementBondsrequiresaclearunderstandingofthespecialassess- ments.Inadditiontothetotalamountassessed,severalotherfactorsareimportant: 235 Whatisthetermofrepayment?Firstlevyyearpayable?Totalnumberofyearspayable? Willtheassessmentsberepaidwithlevelannualinstallmentsofprincipalorlevelannualpayments ofprincipalandinterest? Whatinterestratewillbechargedontheunpaidbalance?Isittiedtotheinterestrateonthe bonds? Willanyoftheassessmentsbedeferred?Ifso,whenwilltheybepaid? WhenistheassessmenthearingandwhenwilltheassessmentsbecertifiedtotheCounty? Whataretheexpectationsfortheinitialprepaymentofassessments? Thetimingoftheimprovementprocessisanotherimportantconsideration.ImprovementBondscanbe issuedanytimeafterthecitycouncilconductstheimprovementhearingandauthorizestheimprove- ments.Noimprovementhearingisneededifthepartiesthatpetitionfortheimprovementwillbeassessed 100%ofthecost.Eachpointintimehasdifferentimplicationsforissuingbonds: Bondsissuedsoonaftertheimprovementhearingwillbebasedonestimatedconstructioncostsand assumptionsaboutspecialassessments. Bondsmaybeissuedimmediatelyafterthereceiptofbidstoprovideconstructionfinancing.The financeplanwillrelyonassumptionsaboutspecialassessments. Bondsmaybeissuedaftercompletionoftheassessmentprocess.Thisallowsthefinanceplantobe basedonfinalconstructioncostsandactualassessments.Thisapproachcanalsoconsidertheamount ofinitialprepayments.Delayingfinancinguntilaftertheassessmentprocessrequirescityfundstopay forconstructionandareimbursementresolutiontoallowtherepaymentofthesefundswiththe proceedsoftax-exemptbonds. Forcontroversialprojectswithahigherriskofassessmentappeals,citieswillconducttheassessmentpro- cessduringtheperiodbetweenthereceiptandawardofconstructionbids.Thisapproachallowsthecityto knowtheappealriskbeforecommittingtoundertaketheimprovement. ImprovementBondsarenotsubjecttothestatutorydebtlimit. UtilityRevenueBonds Minnesotacitiesrarelyissuepurerevenuebondstofinancesanitarysewer,waterandstormsewerutility improvements.StateLawallowscitiestoadditsgeneralobligationtothepledgeofnetutilityrevenues fortheseimprovements (Section444.075).G.O.UtilityRevenueBondsmaybeissuedtobuild,construct, reconstruct,repair,enlarge,improve,orinanyothermannerobtainsanitarysewer,waterandstorm sewerfacilities,andmaintainandoperatethefacilitiesinsideoroutsideitscorporatelimits. TheseBondsaresometimescalled“doublebarreled”.Theyaresecuredbybothutilityrevenuesandthe city’sgeneralobligation.TheBondsmaybesecuredbyasingleutilityorbycombinedutilityfunds.Debt serviceonUtilityRevenueBondsispaidfromthenetrevenuesoftheutilitiespledgedtosecurethe Bonds.SpecialassessmentsmayalsobeleviedandpledgedtotheBonds.UnlikeImprovementBonds, propertytaxescannotbeapermanentandongoingsourceofrevenuetopaydebtservice.Property taxesshouldonlybeusedonatemporarybasiswhentheotherrevenuesareinsufficienttomeetthe obligations. ItisimportanttounderstandthenatureoftherevenuesthatwillbeusedtosupporttheBonds. Howmuchoftherevenuecomesfromconnectionchargesandotherfeesassociatedwith growth? Arerateincreasesneeded?Ifso,arethereanyproceduralissues(suchasapublichearingorap- provalbytheutilitiescommission)? Arethereanylargeusersthatconstituteasignificantportionoftherevenuebase? Aretherespecialagreementswithlargeusers? TherearenospecialproceduralrequirementsfortheissuanceofUtilityRevenueBonds. 236 CapitalImprovementPlanBonds CitiesmayissueCapitalImprovementPlanBondstofinancetheconstructionandmaintenanceofcity hall,townhall,library,publicsafetyfacility,andpublicworksfacility (Section475.521).Thesebondsmay notbeusedtofinanceanyothertypeoffacilityorimprovement.Expendituresforeligiblecapitalim- provementsincurredbeforeadoptionofthecapitalimprovementplanareallowedifincludedinaplan approvedatorpriortothepublichearingontheissuanceofbonds. Theprojectstobefinancedmustbeincludedinacapitalimprovementsplan(CIP)thatmeetsthecriteria ofthestatute.Theplanmustcoveratleastafive-yearperiodbeginningwiththedateofitsadoption.The planmustsetforththeestimatedschedule,timing,anddetailsofspecificcapitalimprovementsbyyear, togetherwiththeestimatedcost,theneedfortheimprovement,andsourcesofrevenuetopayforthe improvement.TheCIPshouldalsoincludeinformationaboutthefactorsrequiredbythestatutetobe consideredbythecitycouncil.Thesefactorsare: Conditionofthemunicipality’sexistinginfrastructure,includingtheprojectedneedforrepairor replacement; Likelydemandfortheimprovement; Estimatedcostoftheimprovement; Availablepublicresources; Levelofoverlappingdebtinthemunicipality; Relativebenefitsandcostsofalternativeusesofthefunds; Operatingcostsoftheproposedimprovements;and Alternativesforprovidingservicesmostefficientlythroughsharedfacilitieswithother municipalitiesorlocalgovernmentunits. TherequiredCIPmaybeadocumentpreparedspecificallyforauthorizingtheissuanceofbondsorit maybeincorporatedintoothercapitalimprovementplanningbythecity. ThemaximumamountofCapitalImprovementPlanBondsislimited.Themaximumprincipalandinter- estpayableinanyyearforalloutstandingCIPBondscannotexceed0.16%oftheestimatedmarket valueoftaxablepropertyinthecity.Thiscalculationismadeusingtheestimatedmarketvalueforthe taxespayableyearinwhichthebondsareissuedandsold. TheBondsaresubjecttothedebtlimitforcitieswithapopulationof2,500ormore. BothapprovaloftheCIPandtheissuanceofBondsrequireapublichearing.Asinglepublichearing maybeheldtomeettheserequirements.TheBondsmustbeauthorizedbyathree-fifthsvoteofa five-membercitycouncil.Ifthecitycouncilhasmorethanfivemembers,two-thirdsapprovalis needed. IssuanceoftheBondsissubjecttoreversereferendum.Anelectionisrequiredfortheissuanceofthe Bondsifapetitionsignedbyvotersequalto5%ofthevotescastinthecityinthelastmunicipalgen- eralelectionisfiledwiththecityclerkwithin30daysafterthepublichearing.Ifthecitydoesnot submitthequestiontothevoters,itmaynotproposetheissuanceofbondsunderthissectionforthe samepurposeandinthesameamountforaperiodof365daysfromthedateofreceiptofthe petition.Ifthequestionofissuingthebondsissubmittedandnotapprovedbythevoters,thecity mustwait180daysbeforevotingonthesamequestionagain. LeaseRevenueBonds LeaseRevenueBondsareusedbycitiestofinancepublicfacilities.Thereisnospecificstatutoryauthority forLeaseRevenueBonds.Thisformoffinancingcombinestwostatutorypowers.Economicdevelopment authorities(EDA)andhousingandredevelopmentauthorities(HRA)havetheauthoritytoissuerevenue bondsfortheircorporatepurposes,includingtheconstructionofpublicfacilities.Thesecurityforthe Bondsandtherevenuetopaydebtservicecomesfromaleasepurchasewiththecity.Notallpublic 237 facilitiesareequallysuitedtotheuseofLeaseRevenueBonds.Asageneralrule,themoreessentialthe facility,thebettertheapplicationofthistool.Thisisduetotheperceptionofinvestorsthatthecityisless likelytonotappropriateandwalkawayfromanessentialfacility. AsimilarformoffinancingisCertificatesofParticipation.Theinvestorreceivesacertificatesecured byashareoftheleasepayments.TheunderlyingsecurityisthesameasLeaseRevenueBonds. ThestatusofthetaxlevytomakeleasepaymentsisanotherconsiderationintheuseofLease RevenueBonds.Underthemostrecentversionoflevylimits,thelevyforLeaseRevenueBondscan bemadeofaspeciallevyandoutsideoflevylimits.Thespeciallevyauthorityistopaydebtservice ofanotherpoliticalsubdivisionandtheEDAisapoliticalsubdivision.Leviestomakeleasepayments donotcurrentlyqualifyasaspeciallevyand,therefore,aresubjecttolevylimits. ThetaxingpoweroftheEDAmayalsobepledgedtoLeaseRevenueBonds. OtherDebtTerms BankQualified Issuersthatreasonablyexpecttoissue$10,000,000orlessintax-exemptbondsduringacalendar yearmaydesignatebondsas“bankqualified”.Thenamereferstothefactthatbanksmaydeducta portionoftheinterestcostonthecarrypurchasedforitsportfolio.Thispreferentialtaxtreatment usuallyresultsinlowerinterestratesthanbondsthatarenotbankqualified.Thedifferencebetween bankqualifiedandnotbankqualifiedratesvariesovertimeandistypicallyhigherforlonger maturities.Boththedirectdebtoftheissuerandanyconduitdebtcountagainsttheissuer’s $10,000,000annualcap. Arbitrage Arbitrageregulationsgoverntheabilitytoinvesttheproceedsoftax-exemptbonds.Thebasicruleof arbitrageisthatthegrossproceedsofabondissuemaynotbeinvestedatarate“materiallyhigher” thantheyieldonthebonds.Thecomplexitiesofarbitragecalculationandcompliancearenot discussedinthisguide.Instead,thisguidefocusesonthethreebasicarbitrageconsiderationsformost Minnesotacities:constructionfund,debtservicefundandarbitragerebate. ArbitrageRebate Issuersmustpay(rebate)tothefederalgovernmentincomeearnedinexcessofthebondyieldunless subjecttothesmallissuerorthespenddownexceptions. Thesmallissuerexceptionapplieswhenthetotalprincipalamountoftaxexempt,non-private activitybondsdoesnotexceed$5,000,000inanycalendaryear.Currentrefundingbondsuptothe amountoftheoutstandingprincipalrefundeddonotcountagainstthislimit. Therearethreeoptionsformeetingthespenddownexception: 1.6-monthexception-grossproceedsandinterestearningsareallocatedtoexpendituresfor governmentalorqualifiedpurposesthatareincurredwithin6monthsafterthedateofissuance. 2.18-monthexception-grossproceedsandinterestearningsarespentwithinthefollowing schedulefromdateofissuance:(1)15%within6months;(2)60%within12months;and(3)100% within8months(witha5%reasonableretainagecarryoveramountforanadditional12month period). 3.2-yearspendingexception–issueisa“constructionissue”(75%ofissueisactuallyspenton construction)andgrossproceedsandinterestearningsarespentwithinthefollowingschedulefrom dateofissuance:(1)10%within6months;(2)45%within12months;(3)75%within18months;and4) 100%within24months. 238 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. 239 (10)Obligationsissuedtopaypensionfundorotherpostemploymentbenefitliabilitiesunder section475.52,subdivision6,oranycharterauthority. (11)Obligationsissuedtopayjudgmentsagainstthemunicipalityundersection475.52,subdivision 6,oranycharterauthority. (12)Allotherobligationswhichundertheprovisionsoflawauthorizingtheirissuancearenottobe includedincomputingthenetdebtofthemunicipality. 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 "marketvaluation"forpurposesofthisparagraph,refertothetaxablemarketvalueforthe previousassessmentyear. 240 273.13CLASSIFICATIONOFPROPERTY. 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. HOUSINGANDREDEVELOPMENTAUTHORITYTAXLEVY 469.033PUBLICREDEVELOPMENTCOST;PROCEEDS;FINANCING. Subd.6.Operationareaastaxingdistrict,specialtax. Alloftheterritoryincludedwithintheareaofoperationofanyauthorityshallconstituteataxing districtforthepurposeoflevyingandcollectingspecialbenefittaxesasprovidedinthissubdivision. Allofthetaxableproperty,bothrealandpersonal,withinthattaxingdistrictshallbedeemedtobe benefitedbyprojectstotheextentofthespecialtaxesleviedunderthissubdivision.Subjecttothe 241 consentbyresolutionofthegoverningbodyofthecityinandforwhichitwascreated,anauthority maylevyataxuponalltaxablepropertywithinthattaxingdistrict.Thetaxshallbeextended, spread,andincludedwithandasapartofthegeneraltaxesforstate,county,andmunicipal purposesbythecountyauditor,tobecollectedandenforcedtherewith,togetherwiththepenalty, interest,andcosts.Asthetax,includinganypenalties,interest,andcosts,iscollectedbythecounty treasureritshallbeaccumulatedandkeptinaseparatefundtobeknownasthe"housingand redevelopmentprojectfund."Themoneyinthefundshallbeturnedovertotheauthorityatthe sametimeandinthesamemannerthatthetaxcollectionsforthecityareturnedovertothecity, andshallbeexpendedonlyforthepurposesofsections 469.001 to 469.047.Itshallbepaidout uponvoucherssignedbythechairoftheauthorityoranauthorizedrepresentative.Theamountof thelevyshallbeanamountapprovedbythegoverningbodyofthecity,butshallnotexceed0.0185 percentofestimatedmarketvalue.Theauthorityshalleachyearformulateandfileabudgetin accordancewiththebudgetprocedureofthecityinthesamemannerasrequiredofexecutive departmentsofthecityor,ifnobudgetsarerequiredtobefiled,byAugust1.Theamountofthe taxlevyforthefollowingyearshallbebasedonthatbudget. 469.001PURPOSES. Thepurposesofsections 469.001 to 469.047 are: (1)toprovideasufficientsupplyofadequate,safe,andsanitarydwellingsinordertoprotectthe health,safety,morals,andwelfareofthecitizensofthisstate; (2)toclearandredevelopblightedareas; (3)toperformthosedutiesaccordingtocomprehensiveplans; (4)toremedytheshortageofhousingforlowandmoderateincomeresidents,andtoredevelop blightedareas,insituationsinwhichprivateenterprisewouldnotactwithoutgovernment participationorsubsidies;and (5)incitiesofthefirstclass,toprovidehousingforpersonsofallincomes. Publicparticipationinactivitiesintendedtomeetthepurposesofsections 469.001 to 469.047 and theexerciseofpowersconfinedbysections 469.001 to 469.047 arepublicusesandpurposesfor whichprivatepropertymaybeacquiredandpublicmoneyspent. 242 UTILITYRATES Cf=cubicfeetorgal=gallon ResidentialWater:10,12,16,17 0-500cf(0-3,740gal)18.85 500-4000cf(3,741-29,920gal)=26,179gal 1.22/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.41/748galor100cf over13369cfover100,000gal 1.53/748galor100cf CommercialWater:11,11NT&11TX,13,90 0-500cf(0-3,740gal)18.85 500-4000cf(3,741-29,920gal)=26,179gal 1.22/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.41/748galor100cf over13369cfover100,000gal 1.53/748galor100cf Sprinklers-ResTwnhm&Commercial:30,31,31NT,32,32NT,91,91NT 1-500cf(1-3,740gal)18.85 500-4000cf(3,741-29,920gal)=26,179gal 1.22/748galor100cf 4000-13369cf(29,921-100,000gal)=70,079gal 1.41/748galor100cf over13369cfover100,000gal 1.53/748galor100cf IndustrialWater:14 AllWaterUsage 1.45/748galor100cf SewerRates-Residential&Commercial:20,25,26 0-500cf(0-3,740gal)22.69 over500cf(over3,740gal)3.97/748galor100cf SewerSpecialCases:SW21,SW22 28.28 IndustrialSewerRates:24 AllSewerUsage 2.388/748galor100cf BOD5(BiochemicalOxygenDemand).344/lb. TSS(TotalSuspendedSolids).474/lb. Testing Actualcost+10% SewerDischargeFee 2% WaterOn/OffCharge: ON$25&Off$25 WaterAvailabilityCharge: $40.25/year FinalBillProcessingFee: $25.00 1cf=7.48gallons Ratesfor2016UtilityBilling IncreasingBlockRates 243 CAPITALIZATIONTHRESHOLDS Classof Asset Details Useful Life Threshold Land/landimprovements N/A Land-$1,Improvements-$50,000 Building/buildingimprovements:$20,000 Floorcover ConstructionInteriorandRoofCover HeatingVentilationACandLighting Electrical Elevators,Fire,PipingandPlumbing SitePreparation WallsExterior Floorstructure,foundation,roof structure,steelframe PrimaryInfrastructureandUtility $75,000 PavingSystems Water,SanitaryandStormSewer SecondaryInfrastructure $25,000 Sidewalk,Boardwalk,Pathways Streetlights,Signage Equipment $10,000 Vehicles Machinery Equipment Softwareand non-tangible $10,000 PurchasedandInternallydeveloped ConstructionWorkInProgress Uponcompletion,peraboveclass Equipmentexpendituresforitemsbetween$500and$10,000arerecordedassmalltoolsand equipment,whichisasupplyaccount.Buildingandimprovementexpendituresbelowthethresholds arerecordedasrepairsandmaintenance.Currentrevenuesfinanceexpendituresforsuppliesand repairsandmaintenance. 244 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. 245 AUDIT:Theexaminationofdocuments,records,reports,systemsofinternalcontrol,accounting andfinancialprocedures,andotherevidenceforoneormoreofthefollowingpurposes:a)To attesttowhetherthestatementspreparedfromtheaccountspresentfairlythefinancialposition andtheresultsoffinancialoperationsoftheconstituentfundsandbalancedaccountgroupsofthe governmentalunitinaccordancewithgenerallyacceptedaccountingprinciplesapplicableto governmentalunitsandonabasisconsistentwiththatoftheprecedingyear;b)Todeterminethe propriety,legalityandmathematicalaccuracyofagovernmentalunit'sfinancialtransactions;c)To ascertainwhetherallfinancialtransactionshavebeenproperlyrecorded;d)Toevaluatethe stewardshipofpublicofficialswhohandleandareresponsibleforthefinancialresourcesofa governmentalunit. BALANCEDBUDGET:Abudgetinwhichestimatedrevenuesandothersourcesequalsestimated expendituresandotheruses.Abalancedbudgetdoesnotusereservesorretainedearningstofund expenditures. BOND:Awrittenpromise,generallyunderseal,topayaspecifiedsumofmoney,calledtheface valueorprincipalamount,atafixedtimeinthefuture,calledthedateofmaturity,andcarrying interestatafixedrate,usuallypayableperiodically. BONDEDINDEBTEDNESS:Outstandingdebtbyissuesofbonds,whicharerepaidbyadvaloremor otherrevenue. BUDGET:Aplanoffinancialoperationembodyinganestimateofproposedexpendituresfora givenperiodandtheproposedmeansoffinancingthem. BUDGETDOCUMENT:TheofficialwrittenstatementpreparedbytheFinanceDepartmentand FinanceDirectoroftheCitywhichpresentstheproposedbudgettotheCityCouncil. BUDGETMESSAGE:Ageneraldiscussionoftheproposedbudgetpresentedinwritingasapartof thebudgetdocument.Thebudgetmessageexplainsprincipalbudgetissuesagainstthe backgroundoffinancialexperienceinrecentyearsandpresentsrecommendationsmadebytheCity Staff. BUDGETCALENDAR:Thescheduleofkeydates,whichagovernmentfollowsinthepreparation andadoptionofthebudget. BUDGETARYCONTROL:Thecontrolormanagementofagovernmentalunitorenterprisein accordancewithanapprovedbudgetforthepurposeofkeepingexpenditureswithinthelimitation ofavailableappropriationsandavailablerevenues. CAPITALASSETS:Assetswithhistoricalacquisitioncosts(valueifdonated)abovethecapitalization threshold,typically$10,000ormore,andausefullifeofmorethanonereportingperiod. 246 CAPITALEXPENDITURES:Acapitalexpenditure occurswhenacapitalassetispurchased.Capitalassets areusedinoperationsandhaveinitialusefullivesextendingbeyondasinglereportingperiod.These assetsmustalsomeetcapitalizationthresholds,whichvarybyassetclassificationandtypicallycostsmore than$10,000.Land,improvementstoland,vehicles,machinery,equipment,infrastructureandother tangibleandintangibleassetsusedinoperationsareexamplesofcapitalassets.Expendituresthatdonot benefitmorethanonereportingperiodormeetthecapitalizationthresholdsareclassifiedacurrent expenditure. CAPITALIMPROVEMENTBUDGET:Aplanofproposedcapitalexpendituresandameansof financingthem.Thecapitalbudgetisenactedaspartofthecompleteannualbudget. CAPITALPROGRAM:Aplanforcapitalexpenditurestobeincurredeachyearoverafixedperiod ofyearstomeetcapitalneedsarisingfromthelong-termworkprogramorotherwise.Itsetsforth eachprojectorothercontemplatedexpenditureinwhichthegovernmentistohaveapartand specifiesthefullresourcesestimatedtobeavailabletofinancetheprojectedexpenditures. CAPITALPROJECTSFUNDS:Fundtypeusedtoaccountforfinancialresourcestobeusedforthe acquisitionorconstructionofmajorcapitalfacilities. CAPITALIZATIONTHRESHOLD:Thelevelatwhichanitemisconsideredeitheracurrent expenditureoracapitalexpenditure. 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. 247 DEBT:Anobligationresultingfromborrowingmoneyorpurchasinggoodsandservices. DEBTLIMIT:Themaximumamountofgrossornetdebt,whichislegallypermitted. DEBTMARGIN:Theamountofavailabledebt,whichmaybeissuedbyagovernmentalunitbefore reachingitsdebtlimit. 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. 248 FISCALPOLICY:Agovernment’spolicieswithrespecttorevenues,spending,anddebtmanagement astheserelatetogovernmentservices,programsandcapitalinvestment.FiscalPolicyprovidesan agreed-uponsetofprinciplesfortheplanningandprogrammingofbudgetsandtheirfunding. FISCALYEAR:ThebudgetandaccountingyearthatbeginsonthefirstdayofJanuaryandendson thelastdayofDecemberofeachyear. FULLTIMEEQUIVALENT(FTE):Thenumberofemployeehours(2,080)neededtobeequaltoone fulltimeemployee.SeveralparttimeemployeesmaybecombinedtomakeoneFTE. FUNCTION:Agroupofrelatedactivitiesaimedataccomplishingamajorserviceorregulatory programforwhichthegovernmentunitisresponsible. FUND:Anindependentfiscalandaccountingentitywithaself-balancingsetofaccountsrecording cashand/orotherresourcestogetherwithallrelatedliabilities,obligations,andreserves,whichare segregatedforthepurposeofcarryingonspecificactivitiesorattainingcertainobjectives. FUNDBALANCE:Governmentalfundassetsminusliabilities. 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. 249 HOUSINGANDREDEVELOPMENTACT–SPECIALBENEFITLEVY:Propertytaxleviedagainstthe city’staxablemarketvalue.TheHRAlevylimitis.0185%ofthetaxablemarketvalueandmustbe usedsolelyforredevelopmentpurposes. IMPROVEMENTBONDS:Bondspayablefromtheproceedsofspecialassessmentsfromproperties benefitingfromanimprovement. IMPROVEMENTS:Buildings,otherstructures,andotherattachmentsorannexationstolandwhich areintendedtoremainsoattachedorannexed,suchassidewalks,trees,drains,andsewers. 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)Taxes,specialassessments,orservicechargesimposedbya governmentalunit. 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. 250 MARKETVALUE:Thevalueapropertyisworth. MARKETVALUEHOMESTEADCREDIT(MVHC):Statepaidpropertytaxreductiononowner occupiedhomesbasedonthepropertiesmarketvalue. 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. 251 PROGRAM:Agroupofrelatedactivitiesperformedbyoneormoreorganizationalunitsforthe purposeofaccomplishingafunctionforwhichthegovernmentalunitisresponsible. PROJECT:Aplanofwork,jobassignment,ortask. 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. 252 SPECIALASSESSMENT:Acompulsorylevymadebyalocalgovernmentagainstcertainproperties todefraypartorallofthecostofaspecificimprovementorservicewhichispresumedtobeof generalbenefittothepublicandofspecialbenefittosuchproperties. 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. 253 UNBALANCEDBUDGET:Abudgetwhichundesignatedfundbalanceorreservesareusedor increased,inordertobalanceestimatedrevenuestoestimatedexpendituresorexpenses. UNRESERVEDFUNDBALANCE:Theportionofafund’sbalancethatisnotrestrictedforaspecific purposeandisavailableforgeneralappropriation. USERFEE:Theservicechargefordeliveringaspecificservicetoaonebenefitingparty. UTILTYVALUATIONTRANSITIONAID(UVTA):AStatefinancialaidprogramfor2009and2010paid tolocalgovernmentstooffsetthereducedpropertytaxrevenuegeneratedbyutilitypropertiesdue tothestatereducingthetaxratepaidonutilityproperty. WORKLOADDATA:Aunitofworktobedone. ACRONYMS CAFRComprehensiveAnnualFinancialReport CD CertificateofDeposit CIP CapitalImprovementPlan CP CommercialPaper CPI ConsumerPriceIndex DMV DepartmentofMotorVehicleorDeputyRegistrar EDA EconomicDevelopmentAuthority MVE MarketValueExclusion EMV EstimatedMarketValue FHLB FederalHomeLoanBank FNM FiberNetMonticello FNMAFederalNationalMortgageAssociation FTE FullTimeEquivalent GAAPGenerallyAcceptedAccountingPrinciples GASBGovernmentalAccountingStandardsBoard GFOAGovernmentFinanceOfficer’sAssociation GO GeneralObligation HACAHomesteadandAgriculturalCreditAid HRA HousingandRedevelopmentAuthority LGA LocalGovernmentAid MCC MonticelloCommunityCenter MCESMetropolitanCouncilEnvironmentalServices MVHCMarketValueHomesteadCredit SAC SewerAvailabilityCharge SY SquareYard TIF TaxIncrementFinancing WAC WaterAvailabilityCharge 254 BackCover