Loading...
HomeMy WebLinkAbout2014 Adopted BudgetCITY OF GEM LAKE 2014 BUDGET Adopted By City Council 11/19/2013 Table of Contents How to Read the Budget ........................................... 1 BudgetMessage ...................................................... 2 Fund Structure and Basis of Budgeting ......................... 3 BudgetSummary ...................................................... 5 General Fund.......................................................... 7 Special Revenue Funds ............................................. 29 Debt Service Funds .................................................. 33 Capital Improvement Funds ....................................... 43 EnterpriseFunds......................................................53 Appendix..................................................................57 Glossary of Terms.....................................................64 HOW TO READ THE BUDGET The budget document serves two distinct purposes. One purpose is to present the City Council Members, residents and other interested readers, concise and readable information about City of Gem Lake. The other purpose is to provide management of the City with a financial and operating plan that conforms to the City's accounting system. The Budget Message provides an overview of the key policy issues and programs in the budget, and presents major areas of emphasis. The Schedules and Summaries provide the heart of the document as an operating and financial plan. The General Fund and Special Revenue Funds section contains revenue and expenditure summaries. It also provides detail revenue and expenditure information, department descriptions, staffing levels, service level objectives and prior year accomplishments for all departments. The Debt Service Funds section contains information about the resources accumulated for the payment of general long-term debt principal and interest. The Capital Improvement Funds section contains revenue and expenditure information about the various construction projects within the Township. The Enterprise Funds section contains revenue and expenditure summaries for all Enterprise Funds. 11 also provides detail revenue and expenditure information, department descriptions, staffing levels, service level objections and prior year accomplishments for all departments within each Enterprise Fund. The Appendix section includes other important financial and City information, such as, City statistics, description of the property tax system, and a glossary of terms. 'Jif CITY OF GEM LAKE, MN City Hall - 4200 Otter Lake Road Gem Lake, MN 55110-3763 Telephone 651-747-2790 E-mail CityA2emlakeMN.org City Council Members, Citizens and Others: It is my privilege to present the 2014 budget for the City of Gem Lake. This budget, as adopted by the City Council identifies how the City resources will be spent in 2014. This budget is the City's financial management plan and has been designed to be responsive to public service demands and for carrying out services over the coming year. The 2014 budget is the result of sound financial management, and affords some protection for the future operation of the City. It is the City's intent to submit and manage the budget in the most open and straightforward manner possible, which will allow consistent and careful management of all resources. The City continually faces many challenges which draw upon the resources and value judgments of all of us. The City budget focus has been to maintain services provided and existing infrastructure. Public safety remains a priority for the City and this budget includes expenditures for increased patrols and law enforcement. Also for 2014 the City has included in the budget $20,000 for updating and changes to the City's comprehensive and zoning plans. The Ice and Snow Removal budget was increased to reflect past expenditure levels. On the revenue side the largest revenue source is property taxes which make up almost 78% of total revenues for the City. The City remains committed to maintaining the property tax levy possible. To that end the City will use reserves of $84,117 to fund General Fund operations in 2014. The 2014 property tax levy is decreased 9.70% and the City's tax capacity also decrease 7.04%, which results in a tax rate decrease of 3.37% to 26.505%. Based on this most residents would see a decrease in their City property tax bills from 2013 to 2014. As 2014 unfolds, the City is well positioned to meet current and future challenges through sound fiscal management. It is our hope this budget will meet the expectations and need of Gem Lake residents. My sincere thanks are extended to the City Council for their time and effort in the preparation of this document. Respectfully, Tom Kelly City Treasurer 2 Look for us on the World Wide Web at gemlakemn.org FUND STRUCTURE AND BUDGET BASIS The financial structure of City of Gem Lake is similar to other governments with the use of funds. Funds are the control structures that ensure that public moneys are spent only for those purposes authorized and within amounts authorized. Funds are established to account for different types of activities and legal restrictions that are associated with a particular government function. The Governmental Accounting Standards Board (GASB) defines a fund as: A fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. All of the funds used by the City must be classified into one of seven "fund types." Four of these fund types are used to account for the City's "governmental -type' activities and are known as "governmental funds." Two of these fund types are used to account for a government's "business -type" activities and are known as "proprietary funds." Finally, the seventh fund type is reserved for a government's "fiduciary activities." The City currently does not operate any fiduciary activities. Governmental Fund types are used to account for governmental -type activities. These are the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The General Fund is used to account for most of the day-to-day operations of the City, which are financed from property taxes and other general revenues. Activities financed by the General Fund are those not accounted for in other funds. There can only be one General Fund. Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources which, by law, are designated to finance particular functions or activities of the City and which therefore cannot be diverted to other uses. The only Special Revenue Fund the City operates is the Park and Playground Fund, which was established to purchase and develop parks and trails in the City through the collection of park dedication fees on new developments or building permits. Debt Service Funds are used to account for the payment of interest and principal on general and special obligation debts other than debt issued for and serviced by a governmental enterprise. The Capital Projects Funds account for all resources used for the acquisition and/or construction of capital equipment and facilities except those financed by Enterprise and Internal Service Funds. Two Proprietary Fund Types are used to account for the City's business -type activities. These are the Enterprise Funds and the Internal Service Funds. The City's only Enterprise Fund is the Sewer Operating Fund. This fund is used to account for the acquisition, operation and maintenance of these facilities and services, which are entirely or predominantly self -supported, by user charges. The operations of the Sewer Operating Fund are accounted for in such a manner as to show a profit or loss similar to private enterprises. Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City, on a cost -reimbursement basis. The City of Gem Lake does not have any Internal Service Funds. Fiduciary Funds are used when a government holds or manages financial resources in an agent or fiduciary capacity. The City of Gem Lake does not operate any of these funds at the current time. The Budget Basis used by the City of Gem Lake is the modified accrual basis of accounting for governmental fund types (for example, the General Fund, Special Revenue Funds, Debt Service and Capital Project Funds). Under this accounting method, revenues are recognized in the accounting period in which they become available and measurable. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized in the period in which the fund liability is incurred, except for unmatured interest on general long-term debt, which is recognized when due. Enterprise Funds use the accrual basis of accounting. Under the accrual basis revenues are recognized when they are measurable and earned. Expenses are recognized in the period incurred, if measurable. The budget basis for Enterprise and Internal Service Funds is also the accrual basis with the exceptions noted below. The City's Comprehensive Annual Financial Report (CAFR) shows the status of the City's finances on the basis of "generally accepted accounting principles" (GAAP). This conforms to the way the City prepares its budget. The CAFR shows fund expenditures on both a GAAP basis and budget basis for comparison purposes BUDGET PROCESS The budget process begins in August with the City Treasurer developing a draft budget. The Mayor and Treasurer then meet in late August or early September to refine the draft budget. It is this budget that is presented to the full City Council in a workshop session in early September. It is from this workshop that a preliminary tax levy is presented and adopted no later than September 15t" of each year. Once adopted the preliminary levy is certified to Ramsey County. Over the next few months the Mayor and Treasurer will develop a final draft budget and tax levy, which again is presented to the full City Council for review in November. From the meeting a final budget and tax levy is developed and presented at a public hearing in November or December. After the public hearing the City Council votes to approve the budget and adopt the final property tax levy. In late December the December the final levy is certified to the County Auditor. During the fiscal year line items may be overspent as long as the total activity budget is not overspent. The Mayor can recommend changes for activities' budget to the City Council, The Council can than approve or disapprove the change, in the form of a budget amendment. Only with the City Council approval can an activity be overspent and only if funding is available. However, the property tax levy cannot be amended. 2014 BUDGET SUMMARY REVENUE BUDGET 11/19/2013 11/19/2013 2010 2011 2012 2013 10/14/13 2014 % ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE GENERAL FUND $384,402 $313,339 $286,934 $260,879 $165,376 $232,016 -11.06% SPECIAL REVENUE FUNDS 549 473 644 350 419 515 47.14% DEBT SERVICE FUNDS 127,977 120,163 133,405 117,824 69,399 110,227 -6.45% CAPITAL IMPROVEMENT FUNDS 12,792 66,990 67,446 17,597 84,486 18,832 7.02% ENTERPRISE FUNDS 47,309 53,438 62,616 44,484 39,676 48,555 9 16% TOTAL REVENUES $573,029 $554,403 $550,045 $441,134 $359,356 $410,145 -7.02% EXPENDITURE BUDGET GENERAL FUND $266,386 $328,021 $306,122 $311,344 $288,862 $318,133 1.54% SPECIAL REVENUE FUNDS 0 0 0 0 0 0 0.00% DEBT SERVICE FUNDS 149,932 153,365 151,690 150,114 428,910 48,505 -67.69% CAPITAL IMPROVEMENT FUNDS 1,042 0 1,375 45,000 10,637 0 -100.00% ENTERPRISE FUNDS 63,511 35,719 37,463 51,035 22,901 54,738 7.26% TOTAL EXPENDITURES $480,871 $517,105 $498,650 $597,493 $751,310 $419,376 -24.77% FUND BALANCE -JANUARY1 $956,380 $1,060,995 $1,110,750 $1,176,602'$1,176,602 $784,648 EXCESS REVENUE OVER EXPENDITURES $92,158 $37,298 $53,395 ($116,359) ($391,954) ($9,231) INFRASTRUCTURE CHANGES $12,457 $12,457 $12,457 $12,500 $0 $12.500 THIS PAGE INTENTIONALLY LEFT BLANK GENERAL FUND GENERAL FUND SUMMARY FUND DESCRIPTION: The General Fund is used to account for the ordinary operations of the City, which are financed from taxes and other general revenues, which are not accounted for in another fund. The modified accrual basis of accounting is used in the General Fund. That is, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received. BUDGET SUMMARY: Property taxes are the largest revenue source, with the general government department as the largest expenditure area planned for 2014. The 2014 General Fund budget of $316,133 is a 1.54% increase over the City's 2013 budget and anticipates using $84,117 of Fund Balance to balance the budget and keep property taxes as low as possible. The graph below and on the next page demonstrate the percentage breakdown of budgeted revenues by classification and expenditure by department. Page 10 also shows this information numerically. 2014 Expenditures By Department Operating Transfers $0 Public Works $42,550 r' General \ Government $162,491 Public Safety $111,092 W 2014 PROPOSED REVENUES BY CLASSIFICATION Licenses & Permits u aaa Property Taxe! 77.63% Intergovernmental 3.38% Charges for Services 0.79% Fines & Forfeits 0.86% Miscellaneous 8.65% REVENUES BY CLASSIFICATION 2010 ACTUAL 2011 ACTUAL 2012 ACTUAL 11/19/2013 2013 ADOPTED 10/14/13 ACTUAL 11/19/2013 2014 ADOPTED CHANGE PROPERTY TAXES $329,189 $244,765 $214,796 $204,242 $107,592 $180,119 -11.81% LICENSES & PERMTS 18,905 21,572 26,795 16,150 28,611 20,150 24.77% INTERGOVERNMENTAL REVENUES 9,662 9,449 9,881 8,473 3,250 7,842 -7.45% CHARGES FOR SERVICES 1,712 7,121 5j91 1,189 6,564 1,840 54.75% FINES & FORFEITS 1,811 2,903 3,878 2,000 4,738 2,000 0.00% MISCELLANEOUS 23,123 27,529 25,393 28,825 15,621 20,065 -30.39% TOTAL REVENUES $384,402 $313,339 $285,934 $260,879 $165,376 $232,016r -11.06% EXPENDITURES BY DEPARTMENT GENERAL GOVERNMENT 41100 CITY COUNCIL $6,304 $5,994 $6,766 $33,264 $6,662 $28,766 -13.52% 41900 GENERAL GOVERNMENT 40,424 38,260 42,512 43,235 23,830 33,145 -23.34% 41600 LEGAL SERVICES 11,541 8,181 9,990 14,000 11,418 17,000 21.43% 41410 ELECTIONS 4,352 426 5,079 6,450 1,941 4,550 -29.46% 41500 FINANCIAL ADMINISTRATION 37,144 36,579 31,467 39,080 24,513 37,900 -3.02% 41910 PLANNING&ZONING 6,770 3,715 3,903 5,530 1,964 23,130 318.26% 41940 HERITAGE HALL 14,681 30,266 12,906 16,450 13,556 18,000 942% TOTAL GENERAL GOVERNMENT $121,214 $123,421 $111,623 $158,009 $83,883 $162,491 2.84% PUBLIC SAFETY 42100 POLICE 81,584 83,660 85,367 87,110 74,204 88,595 1.70% 42200 FIRE PROTECTION 17,520 16,863 17,552 17,675 14,419 14,797 -16.28% 42300 ANIMAL CONTROL 98 153 57 400 58 400 0.00% 42401 BUILDING INSPECTIONS 9,499 9,639 8,282 6,800 8,225 7,300 735% TOTAL PUBLIC SAFETY $108,701 $110,315 $111,258 $111,985 $96,906 $111,092 -0.80% PUBLIC WORKS 43122 ROADMAINTENANCE 12,831 11,674 5,797 19,750 13,321 16,050 -18.73% 43125 ICE& SNOW REMOVAL 23,639 12,611 17,444 21,600 24,752 26,500 22.69% 44100 PARKMAINTENANCE 0 0 0 0 0 0 000% TOTAL PUBLIC WORKS $36,470 $24,285 $23,241 $41,350 $38,073 $42,550 2.90% OPERATING TRANSFERS 4900 OPERATING TRANSFERS 0 70,000 60,000 0 70,000 0 000% TOTAL OPERATING TRANSFERS $0 $70,000 $60,000 $0 $70,000 $0 0.007 TOTAL EXPETIDITURES $266,386 $328,021 $306,122 $311,344 $288,862 $316,133 1,54% FUND BALANCE - JANUARY 1 $294,065 $412,081 $397,399 $377,211 r $377,211 $253,726 EXCESS REVENUE OVER EXPENDITURES $118,016 ($14,682) ($20,188) ($50,465) ($123,486) ($84.117 FUND BALANCE -DECEM3ER 31 746 $253.725 -48.09 % 10 REVENUES GENERALFUND ACTIVITY DESCRIPTION: To record and maintain all general operating revenues. These revenues will be used to finance the general operating expenditures of the City. GOALS: 1. Maintain stable, constant revenue sources. Maintain a low tax rate, by reviewing the costs of services provided and charge appropriately for them. BUDGET SUMMARY: The property tax system is described in more detail beginning on page 58. The City's net taxable tax capacity has decreased to $848,243 for taxes payable in 2014. This is a decrease of 7.04%. The City's property tax levy for 2014 will be $180,119. Asa result of these two factors and the $50,100 debt levy, the 2014 tax rate for the City will be 26.505% compared with 27.430% in 2013, All other City revenue sources were adjusted slightly or remained at the 2013 budget amounts for 2014. REVENUE LEVELS: 2011 2012 2013 2014 ACTUAL ACTUAL ACTUAL ESTIMATED Tax Rate 29.071% 26.214% 27.430% 26.505% Net Taxable Tax Capacity 1,101,546 1,022,048 912,518 848,243 11 BUDGET: 11/20/2012 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/2013 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENT TAXES $323,457 $242.263 $195,107 $199,606 $99,066 $174,925 -12.36% 31002 DBJNQUEJTTAXES 4,460 (1,344) 13.815 0 6,732 0 0.00% 31003 FISCAL DISPARITIES 930 2,680 4,671 4,636 1,471 5.194 12.04% 31004 PENALTIES & INTEREST 343 1,166 1,203 0 323 0 000% TOTAL PROPERTY TAXES $329.189 $244,765 $214,796 $204.242 $107,592 $180,119 -11.81% LICENSES & PERMITS 32100 GENERAL BUSINESS LICENSES 1,275 1,800 2.000 1,700 700 1,700 0.00% 32101 ON -SALE LIQUOR LICENSES 2,200 4,400 4,400 4.400 2,200 4.400 0.00% 32102 OFF SALE LIQUOR LICENSE 0 0 0 0 0 0 0.00% 32103 NOPHNTOXICATING LIQUOR LICENSES 0 0 0 0 0 0 0.00% 32104 OTHER PERMITS 675 1.475 1,145 0 2,775 800 0.000A 32106 TOBACCO LICENSE 350 500 500 500 500 500 0.00% 32107 CHARITABLE GAMBLING LICENSE 225 500 500 500 500 500 0.00% 32201 CONTRACTORLICBNSE 825 1,200 2,910 500 1,600 800 60.00% 32210 BUILDING PERMITS 5,647 4,330 7,108 2,000 14,604 5,000 150.00% 32211 PLUMEING PERMITS 511 466 220 350 1,992 350 0.00% 32212 GAS/HEATING PERMITS 454 392 1,115 250 1,505 300 20.00% 32213 ELECTRICAL PERMITS 325 787 275 500 825 250 -50.00% NPDES PERMIT 0 0 200 0 300 100 0.00% 32218 FIRE MARSHALL INSPECTION FEE 2,938 2.411 2,912 2.250 0 2,250 0.00% 32219 SEPTIC INSPECTION FEE 3,240 3,101 3,060 3,000 0 3,000 0.00% SEWER CONTRACTOR LICENSE 0 0 200 0 900 200 0.00% 32240 ANIMAL CONTROL LICENSE 240 210 250 200 210 0 -10000% TOTAL LICENSES &PERMITS $18,905 $21,572 $26,795 $16,150 $28.611 $20,150 24.77% INTERGOVERNMENTAL REVENUFS 33401 LGA 0 0 0 0 0 0 0.00% 33402 RACA 0 0 0 0 0 0 0.W% 33430 COUNTY GRANTS & AIDS 27 25 0 0 34 0 0.00% 33601 SCOREGRAW 873 796 835 831 0 0 -100.00% 33603 POLICESTATEAID 4,299 3A50 3,642 3,642 3,216 3,642 0.00% 33602 CABLETV FRANCHISE FEES 4,463 4,978 5,404 4,000 0 4,200 5.00% 33604 OTHER GOVERNMBNTAIDS AND GRAMS 0 0 0 0 0 0 000% TOTAL INTERGOV. REVENUES $9,662 $9,449 $9.881 $8,473 $3,250 $7.842 -7,45% CHARGES FOR SERVICES 32220 SURCHARGE/SAC RETAINAGE 100 139 63 100 0 75 -25,00% 32230 ADMNISTRATNECHARGES 402 723 501 350 26 350 0.00% 34105 PLANNING CHARGES 0 5.300 0 0 700 100 0.00% 34110 RAN CHECK FEES 659 494 4,197 400 4,444 800 100.00% 34120 SALEOFSUPPLIES 0 0 0 0 0 0 0.00% 34121 SPECIAL ASSESSMENT SEARCHES 20 0 0 0 0 0 0.00% 34122 ENGINEERING CHARGES 0 0 0 0 0 0 0.00% 34126 CHARGES FOR LEGAL FEES 0 0 0 0 0 0 0.00% 34132 INVESTMENTAOMIMSTRATME CHARGE 532 465 430 339 394 515 51.92% 34135 CONTRACTUAL SERVICES 0 0 0 0 0 0 000% TOTAL CHARGES FOR SERVICES $1,712 $7,121 $5.191 $1,189 $5,564 $1,840 54.75% FINES & FORFEITS 35100 TRAFFIC & OTHER FINES 1,811 2.903 3,878 2,000 4,738 2000 000% TOTAL FINES & FORFEITS $1,811 $2,903 $3.878 $2,000 $4,738 $2,000 0.00% MISCELLANEOUS REVENUES 36210 INTEREST EARNINGS 4,739 5,808 5,167 3,125 3.618 4,365 39.68% 36231 CHARITABLE GAMBLING CONTRIBUTIONS 3,463 3,853 2,634 3,000 1,922 1,000 -66.67% 36241 INSURANCEPOUCY DIVIDENDS 446 546 745 300 2 300 0.00% 38200 MISCELLANEOUS 322 514 1,993 400 1,016 400 0.00% 36400 FACILITY RBNTAL 14,153 16,808 14,854 22,000 9,063 14,000 -36.36% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 000% TOTAL MISCELLANEOUS $23,123 $27,529 $25.393 $28,825 $15,621 $20,065 -30.39% TOTAL GENERAL FUND REVENUES $384,402 $313,339 $285,934 $260.879 $165,376 $232 016 -17 06% 12 CITY COUNCIL GENERALFUND ACTIVITY DESCRIPTION: The City Council provides elected representation to the community with control over matters of policy, budget, administration, and operations of the City. GOALS: 1. Respond to citizen concerns, suggestions, questions, and complaints in a timely manner. 2. Keep current on legislative issues and incorporate those that directly affect the City and its residents. 3. Provide strategic direction to the City. 4. Provide policy direction and organization governance through budget, ordinances and other policy decisions. BUDGET COMMENTARY: The budget for contingency for unbudgeted and unplanned expenditures that could come up during the year was reduced for 2014. BUDGET: DEPARTMENT 41100 11/20/2012 11/1912013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNTDESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $5,287 $5,356 $5,356 $5,356 $4,017 $5,356 0.00% 130 FICA CONTRIBUTIONS 404 410 410 410 227 410 000% TOTAL PERSONNEL SERVICES $5,692 $5,766 $5,766 $5,766 $4,244 $5,766 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 308 ADMINISTRATION 0 0 0 0 2,418 3,000 0.00% 310 CONFERENCE REGISTRATION FEES 0 0 0 1,000 0 0 -100.00% 333 MEETING EXPENSES 0 0 0 0 0 0 0.00% 364 OTHER INSURANCE 0 0 0 0 0 0 0,00% 449 COUNCIL CONTINGENCY 812 228 0 26,498 0 20,000 -24 52% TOTAL OTHER SERVICES & CHARGES $612 $228 $0 $27.498 $2,418 $23,000 -16.36% TOTAL CITY COUNCIL $6,304 $5,994 $5,766 $33,264 $6,662 $28,766 -13 52% 13 Clerk/General Government General Fund ACTIVITY DESCRIPTION: The Clerk/General Government Budget provides for funds and support for all of the City programs and departments of overall nature to City operations, not specifically mentioned in this written budget report. These programs include; Administration, Recording Secretary, Newsletters, Insurance and Memberships. The General Government Budget also provides contributions to various community oriented organizations. GOALS: Prompt publication of meeting minutes, ordinances, and legal notices. 2. Provide support for agencies which provide service needs within the City. BUDGET COMMENTARY: Most line items adjusted based on current and past expenditure levels. Recycling contract adjusted down to reflect 2013 costs. Charitable Gambling Distributions was reduced to zero because funds are only distributed if funds are received, which for the last half of 2013 no funds have been received. 14 BUDGET: DEPARTMENT 41900 11/19/2013 11/19/2013 ACCT, 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE 100 WAGES &SALARIES 10,711 11,360 12,230 12,000 6,172 12,500 4.17% TEMPORARY BVIPLOYEES 0 0 2,010 0 0 0 0.00% 130 FICA CONTRIBUTIONS 0 0 0 0 0 0 0.00% 131 PERA CONTRBUTIONS 0 0 0 0 0 0 0.00% 135 HEALTH INSURANCE 0 0 154 0 0 0 0.00% 150 WORKERS COMPENSATION 0 0 64 0 95 100 000% TOTAL PERSONNEL SERVICES $10,711 $11,360 $14,458 $12,000 $6,267 $12,600 5.00% SUPPLIES 200 OFFICE SUPPLIES $1,164 $739 $1,457 $2,000 $746 $1,000 -50.00% 212 POSTAGE 1,211 1,124 925 1,500 694 1,000 -33.33% 250 SALBSTAX 0 0 0 0 0 0 000% TOTAL SUPPLIES $2.376 $1,863 $2,382 $3,500 $1,440 $2,000 -42.86% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 0.00% 305 ADMINISTRATION 3,536 1,752 3,367 4,000 818 1,000 -75.00% 308 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 309 MISCELLANEOUS 228 0 0 200 0 200 0.00% 310 CONFERENCE REGISTRATION FEES 0 0 0 0 0 0 0.00% 320 INTERNET CONNECTION 0 0 0 0 0 0 0.00% 322 WEB SITE 600 670 600 1,000 472 600 -40.00% 331 MILEAGE 170 189 243 250 165 300 20.00% 332 RECORDING SECRETARY 2.100 1,800 2,100 2,600 1,800 3,000 15.38% 334 COMPUTER SERVICES 1,360 11360 1,170 1,500 1,170 1,900 26.67% 346 MARKETING & ADVERTISING 0 0 0 0 0 0 0,00% 350 PRINTING - OTHER 0 0 0 0 0 0 0.00% 351 LEGAL NOTICES 1,020 880 369 1,000 73 500 -50.00% 352 NEWSLETTER/PUBLIC RBATIONS 2,110 1,901 2,311 2,500 1,556 1,500 -40.00% 361 GENERAL LIABILITY INSURANCE 1,546 1,333 1,613 1,800 980 1,600 -11.11% 362 PROPERTY INSURANCE 0 0 551 0 56 0 0.00% 363 VEHICLE INSURANCE 63 46 62 65 0 75 15.38% 365 PUBLIC OFFICIALS LIABILITY INSURANCE 136 193 138 150 80 175 16.67% 384 RECYCLING COLLECTION 9,428 10,056 10,265 9,000 7,301 7,000 -22.22% 434 VLAWMO 0 0 0 0 0 0 0.00% 435 LMC 457 462 478 525 497 525 0.00% 436 RCLLG 125 125 125 125 126 150 20.00% 440 DUES & SUBSCRIPTIONS 20 20 30 20 30 20 0.00% 450 CHARITABLE GAMBLING DISTRIBUTIONS 4,440 4,250 2,250 3,000 1,000 0 -10000% TOTAL OTHER SERVICES & CHARGES $27,338 $25,037 $25,672 $27,735 $16,123 $18,545 -33.14% CAPITAL OUTLAY 570 FURNITURE& OFFICE EQUIPMENT $0 $0 $0 $0 $0 $0 0.00% 580 OTHER EQUIFMENTINFROVEMENTS 0 0 0 0 0 0 O00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL CLERK/GENERAL GOVERNMENT $40,424 $38,260 $42,512 $43,235 $23,830 $33,145 -23 34% 15 Legal Services General Fund ACTIVITY DESCRIPTION: All legal services are currently contracted with a private legal firm. Activities included are the issuance of legal opinions, preparation of ordinances, resolutions, contracts, and agreements, and the conduct of civil litigation. GOALS: 1. Continue contracting for legal counsel. BUDGET COMMENTARY: The 2014 budget is based on contract cost of current legal counsel and anticipated use or need of legal counsel for 2014. BUDGET: DEPARTMENT 41600 11/19/2013 11/19/2013 ACCT # 'ACCOUNT DESCRIPTION 2010 ACTUAL 2011 ACTUAL 2012 ACTUAL 2013 ADOPTED 10/14/13 ACTUAL 2014 ADOPTED % CHANGE OTHER SERVICES & CH4 RGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 303 PROSECUTION 630 710 1,535 2,000 785 2,000 0.00% 304 LEGAL SERVICES 10,876 7,471 8,455 12,000 6,655 10,000 -16.67% 305 LEGAL SERVICES - LAND ISSUES 35 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 317 LEGAL -ANNEXATION 0 0 0 0 3,978 5000 000% TOTAL OTHER SERVICES & CHARGES $11,541 $8,181 $9,990 $14,000 $11,418 $17,000 21.43% TOTAL LEGAL SERVICES $11,541 $8,181 $9,990 $14,000 $11,418 $17000 2743% 16 Elections General Fund ACTIVITY DESCRIPTION: The Elections budget funds election activities of the City, which include; maintenance of voting and ballot counting equipment and payment of the election service contract with Ramsey County. GOALS: 1. Conduct fair and open elections. BUDGET COMMENTARY: Beginning in 2013 the City will contract with Ramsey County for election administrative services. The cost to administer the elections will be spread over a two year period. The City will have a general election in the fall of 2014. BUDGET: DEPARTM ENT 41410 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $0 $0 $0 $0 $0 $0 0.00% 105 TEMPORARY EMPLOYEES 851 0 740 0 0 0 0.00% 130 FICA CONTRIBUTIONS 0 0 0 0 0 0 a00% 160 WORKER'S COMP 0 0 0 0 0 0 0 00% TOTAL PERSONNEL SERVICES $851 $0 $740 $0 $0 $0 0.00% SUPPLIES 210 OPERATING SUPPLIES - OTHER 12 0 32 0 0 0 0.00% 212 POSTAGE 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $12 $0 $32 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 308 ADMINISTRATION 2,825 0 4,111 6,000 0 0 -100.00% 308 PROFESSIONAL SERVICES 0 0 0 0 1,500 4,000 0.00% 309 MISCELLANEOUS 219 0 12 0 15 0 0.00% 331 MILEAGE 13 0 0 0 0 0 0.00% 350 OTHER PRINTING 0 0 0 0 0 0 0.00% 351 LEGAL NOTICES 0 0 184 0 0 0 0.00% Ballot Machine 0 0 0 0 0 0 0,00% 400 REPAIR/MAINTENANCE EQUIPMENT 432 426 0 450 426 550 2222% TOTAL OTHER SERVICES&CHARGES $3,489 $426 $4,307 $6,450 $1,941 $4,550 -29.46% TOTAL ELECTIONS $4,352 $426 $5,079 $6,450 $1,941 $4,550 -2946% 17 Financial Administration General Fund ACTIVITY DESCRIPTION: Financial administration is provided through a contract with White Bear Township. The contract includes accounting for every financial transaction of the City including accounts payable, accounts receivable, cash and debt management, and utility billing. In addition the City contracts with a public accounting firm for audit services each year. GOALS: 1. Provide meaningful and timely financial information and reports. 2. Complete the financial audit in a timely fashion. 3. Coordinate the City's annual budget process. BUDGET COMMENTARY: The City's audit contract includes a 4.95% increase for the 2013 audit. The amount budgeted for accounting services from White Bear Township is decreased based on time billed for providing the service over the past several years. BUDGET: DEPARTMENT 41500 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES SUPPLIES 200 OFFICESUPPLIES 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 000% TOTAL SUPPLIES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 301 AUDTFING SERVICES 9,007 8,135 8,320 8,480 8,480 8,900 4.95% 329 FINANCIAL SERVICES 28,137 28,444 22,904 30,000 15,237 28,000 -6.67% 334 COMPUTER SERVICES 0 0 243 600 796 1,000 66.67% 309 MISCELLANEOUS EXPENSE 0 0 0 0 0 0 000% TOTAL OTHER SERVICES & CHARGES $37,144 $36,679 $31,467 $39,080 $24,513 $37,900 -3.02% TOTAL FINANCIAL ADMINISTRATION $37,144 $36,579 $31,467 $39,080 $24,513 $37,900 -302% 18 Planning & Zoning General Fund ACTIVITY DESCRIPTION: This department provides long range planning, day to day coordination, and design and management of programs and plans affecting residential, commercial and industrial development. The activities include, but are not limited to, comprehensive planning, zoning administration, design of trails and bikeways, promotion. GOALS: 1. Implementation of comprehensive plan objectives. BUDGET COMMENTARY: In 2014 the City will be updating its comprehensive and zoning plans which will require the use of outside consultant, so the City is budgeting $20,000 for professional services for this project. BUDGET: DEPARTMENT 41910 11/19/2013 11/1912013 ACCT 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 255 0 0 20,000 0.00% 308 ADMINISTRATION 2,664 1,482 1,521 3,000 868 1,000 -66.67% 302 ENGINEERING SERVICES 497 628 927 1,000 896 1,000 0.00% 309 MISCELLANEOUS 0 0 30 30 0 30 0.00% 315 ZONING ADMINISTRATION 184 0 75 0 0 100 0.00% 325 NPDES TRAINING 0 0 0 0 0 0 0.00% 326 NPDES EDUCATION 0 0 0 0 0 0 0.00% 327 NPDES ADMINISTRATION 0 0 0 0 0 0 0.00% 332 RECORDING SECRETARY 1,650 1,350 1,350 1,500 200 1,000 -33.33% 348 COMP. PLAN UPDATE 1,774 0 0 0 0 0 0.00% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $6,770 $3,715 $3,903 $5,530 $1,964 $23,130 318.26% CAPITAL OUTLAY 570 FURNITURE& OFFICE EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL PLANNING &ZONING $6,770 $3,715 $3,903 $5,530 $1,964 $23,130 318,26% 19 Heritage Hall General Fund ACTIVITY DESCRIPTION: The activity for this department is to provide for the operation and maintenance of the City offices/meeting facility GOALS: 1. Maintain a reputable facility to house meetings and mayor's office and a sub -station for the Ramsey County Sheriff Department. BUDGET COMMENTARY: Line items adjusted to reflect past expenditure activity. BUDGET: DEPARTMENT 41940 11119/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 205 CLEANING SUPPLIES 0 0 0 0 0 0 0.00% 210 OPERATING SUPPLIES- OTHER 609 921 1,228 1,500 711 1,500 0.00% 211 CHEMICALS 0 0 0 0 0 0 0.00% 230 BUILDING MATERIALS 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $609 $921 $1,228 $1,500 $711 $1,500 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 1,890 1,733 1,567 2,000 1,177 1,500 -25.00% 309 CONTRACT SERVICES 293 1,292 225 1,500 347 1,000 -33.33% 321 TELEPHONE 1,211 1,254 1,273 1,500 972 1,000 -33.33% 362 PROPERTY INSURANCE 705 701 175 750 522 780 0.00% 381 ELECTRICITY 3,438 3,378 4,246 3,000 3,722 5,000 66.67% 383 GAS 1,384 1,434 1,418 1,500 1,137 1,500 0.00% 384 RUBBISWRE-CYCLING 0 0 0 0 0 0 0.00% 385 WATER/SENERU7TLMES 383 383 442 600 288 750 25.00% 400 REPAIR/MAINTENANCE- OTHER 332 1,439 1,874 1,600 1,541 2,000 25.00% 401 REPAIR/MAINTENANCE-BUILDINGS 4,436 15,968 458 2,000 3,138 3000 5000% TOTAL OTHERSBRVICES & CHARGES $14,072 $27,582 $11,678 $14.450 $12.844 $16,500 14.19% CAPITAL OUTLAY 520 BUILDING IMPROVEMENTS 0 1,763 0 500 0 0 -100.00% 570 FURNITURE& OFFICE EQU[PMNT 0 0 0 0 0 0 0.00% 580 OTHER BQUIPMENT/MPROVEMFNTS 0 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $0 $1,763 $0 $500 $0 $0 -100.00% TOTAL HERITAGE HALL $14,681 $30,266 $12,906 $16,450 $13,555 $18,000 942% 20 Police General Fund ACTIVITY DESCRIPTION: The City of Gem Lake contracts with the Ramsey County Sheriffs Department to provide law enforcement services for the City. As part of the contract, they will serve and protect the City as well as provide public education programs and services to the residents. GOALS: Provide effective law enforcement service to the City. BUDGET COMMENTARY: The 2014 budget is based on the contracted budget amount provided by the Ramsey County Sheriff's Department. BUDGET: DEPARTMENT 42100 11/19/2013 11/19/2013 ACCT 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNTDESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 305 REGULAR LAW ENFORCEMENT 78,904 80,828 82,361 78,525 69,246 79,650 1.31% 306 SPECIAL LAW ENFORCEMENT 0 0 0 5,910 2,954 6,295 6.51% 307 DISPATCH COSTS 2,680 2,832 2,852 2,675 2,004 2,750 2.80% 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 154 0 0 0 000% TOTAL OTHER SERVICES & CHARGES $81,584 $83,650 $85,367 $87,110 $74,204 $88,695 1.70% TOTAL POLICE $81,584 $83,660 $85,367 $87,110 $74,204 $88,695 1.70% 21 Fire Protection General Fund ACTIVITY DESCRIPTION: The objective of the Fire Protection Department is to provide fire protection and prevention services. The City of Gem Lake entered an agreement with the City of White Bear Lake for such services. The contract also provides for site inspections and enforcement of fire codes through their Fire Marshal. Paramedic and ambulance service is provided by the contract, but the cost of the service is not included in the contract since it is billed as a fee -for -service to the individuals using the service. GOALS: Promote public education and information about fire prevention and safety. Reduce property damage and loss due to fire. 3. Provide emergency medical assistance to all residents. BUDGET COMMENTARY: The City's contract amount is based on the White Bear Lake Fire Department 2014 budget less an adjustment for 2012 actual expenditures compared to budget and multiplied by the City's percentage of average population and average market valuation of the area served by the White Bear Lake Fire Department. BUDGET: DEPARTMENT 42200 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE 308 ADMINISTRAT10N 309 MCELLANEOUS $0 $0 $0 $0 $0 $0 0.00% 0 0 0 0 0 0 0,00% 311 FIRESERVICE 13,808 13,427 13,790 13,825 11,217 10,761 .22.16% 312 FIRE M4RSHALL SERVICES 3,712 3,436 3,762 3,850 3,202 4036 483% TOTAL OTHER SERVICES & CHARGES $17,520 $16,863 $17,552 $17,675 $14,419 $14,797-15.28% TOTAL FIRE $17,520 $16,863 $17,552 $17,675 $14,419 $14,797 -1628% 22 Animal Control General Fund ACTIVITY DESCRIPTION: The City of Gem Lake entered an agreement with a private company for their animal control services. The contract is for service as needed. GOALS: 1. Address animal issues within the City in a timely manner. BUDGET COMMENTARY: The 2014 budget was based on past expenditures. BUDGET: DEPARTMENT 42300 11 / 1912 013 11 / 19/2 013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES D 0 0 0 0 0 0.00% 309 MISCELLANEOUS 42 0 0 0 0 0 0.00% 323 ANIMAL REMOVAL 0 0 0 100 0 100 0.00% 324 ANIMAL ENFORCEMENT 56 153 57 300 58 300 0.00% TOTAL OTHER SERVICES & CHARGES $98 $153 $57 $400 $58 $400 0.00% TOTAL ANIMAL CONTROL $98 $153 $57 $400 $58 $400 0.00% 23 Building Inspections General Fund ACTIVITY DESCRIPTION: The Code Enforcement Department issues all building permits for the City. This department provides for the health, safety and welfare of the City residents by providing inspection services to ensure that all residential, commercial, and industrial buildings are in compliance with the Uniform Building Code and City Ordinances. GOALS: 1. Continue to provide timely and thorough inspections. 2. Provide inspections of the City to apprehend illegal construction activities, which are not allowed or for which no permits have been issued. BUDGET COMMENTARY: Budget based on 2013 activity and projected 2014 activity. BUDGET: DEPARTMENT 42401 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % 9 ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 313 BUILDING INSPECTIONS 8,168 8,565 7,218 5,000 6,653 5,500 10.00% 309 MISCELLANEOUS 0 32 0 0 0 0 0.00% 316 BUILDING SECRETARY SERVICES 827 538 317 1,000 679 1,000 0.00% 334 COMPUTER SERVICES 504 504 747 800 893 800 0.00% 328 CODE ENFORCEMENT 0 0 0 0 0 0 0 00% TOTAL OTHER SERVICES & CHARGES $9,499 $9,639 $8,282 $6,800 $8,225 $7,300 7.35% CAPITAL OUTLAY 570 FURNITURE & EQUIPMENT 0 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL BUILDING INSPECTIONS $9,499 $9,639 $8,282 $6,800 $8,225 $7,300 7.35% 24 Road Maintenance General Fund ACTIVITY DESCRIPTION: The Road and Bridge Department provide residents with safe and accessible transportation routes. This department provides for all maintenance and repair of the City's roads. Routine road maintenance is performed by White Bear Township public works staff by contract. GOALS: 1. Routine maintenance to assure long life of each street. BUDGET COMMENTARY: Most line items adjusted based on past expenditures however NPDES Stormwater was reduced to reflect less time spent on this activity. Road maintenance/repair budget decreased to reflect past expenditures and the City will be completing a seal coat project (funded by the Capital Project Funds) which should reduce the need for repairs on those roadways. BUDGET DEPARTMENT 43122 11 / 1912 013 11 / 19/2013 ACCT, 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 211 CHEMICALS 0 0 0 0 0 0 0.00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% 224 GRAVEL/STREETMATERIAL 0 0 0 0 0 0 0.00% 225 SALT/SAND 0 0 0 0 0 0 0,00% 226 SIGNS, SIGN REPAIR MATERIALS 0 0 0 500 123 500 0.00% 250 SALES TAX 0 0 0 0 0 0 000% TOTAL SUPPLIES $0 $0 $0 $500 $123 $500 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 302 ENGINEERING FEES 2,771 859 3,437 4,000 8,881 5,000 25.00% 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 210 0 0.00% 327 NPDES- STORMWATER 400 6,972 (100) 10,000 0 5,000 -50.00% 351 LEGAL NOTICES 0 0 0 0 0 0 0,00% 382 ELECTRICITY - STREET LIGHTS 953 1,042 985 1,200 934 1,500 25.00% 385 ROWMAINTENANCE 3,491 0 1,435 2,000 633 1,500 -25.00% 405 ROAD MAINTENANCERSAIR 5,175 2,759 0 2,000 2,500 2,500 25,00% 433 DUES AND SUBSCRIPTIONS 42 42 40 50 40 50 000% TOTAL OTHER SERVICES & CHARGES $12.831 $11,674 $5,797 $19,250 $13,198 $15,550 -19.22% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL ROAD MAINTENANCE $12,831 $11.674 $5,797 $19,750 $13,321 $16,050-18.73% 25 Ice & Snow Removal General Fund ACTIVITY DESCRIPTION: The City's Ice and Snow activity is responsible for the control of ice and snow on City streets. The activity provides control in a safe and cost effective manner, keeping in mind safety, budget, and environmental concerns. The City contracts for this activity. GOALS: 1. Remove snow as quickly as possible to provide all residents with safe access. BUDGET COMMENTARY: The budget for ice and snow control was induced based on 2013 expenditure amounts. BUDGET: DEPARTMENT 43125 1111912013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 225 SALTSAND 6,265 3,378 4,788 10,000 6,480 8,000 -20.00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% 250 SALES TAX 432 255 329 600 423 0 -10000% TOTAL SUPPLIES $6,697 $3,633 $5,117 $10,600 $6,903 $8,000 -24.53% OTHER SERVICES & CHARGES 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 400 REPAIR/MAINTENANCE- OTHER 0 0 1,170 1,000 0 0 -100.00% 404 REPAIR/MAINTENANCE-CONTRACTUAL 16,942 8,978 11,157 10,000 17,849 18,500 8500% TOTAL OTHERSERVICES & CHARGES $16,942 $8,978 $12,327 $11,000 $17,849 $18,500 68.18% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL CAPTAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL ICE&SNOW REMOVAL $23,639 $12,611 $17,444 $21,600 $24,752 $26,500 22.69% 26 Parks Maintenance General Fund ACTIVITY DESCRIPTION: This department provides for all maintenance and upkeep of the City's parks system. Township personnel, through a contract, perform all labor and provide the equipment for maintenance. GOALS: 1. Routine maintenance of parks. BUDGET COMMENTARY: Currently the City does not perform routine maintenance of parks and therefore there is no expenditures budgeted for this activity. BUDGET: DEPARTMENT 4410 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNTDESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 211 CHEMICALS 0 0 0 0 0 0 0.00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% LANDSCAPING MATERIALS 0 0 0 0 0 0 0.00% 226 SIGNS, SIGN REPAIR MATERIALS 0 0 0 0 0 0 0,00% 250 SALESTAX 0 0 0 0 0 0 000% TOTAL SUPPLIES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 404 PARK MAINTENANCE - CONTRACTUAL 0 0 0 0 0 0 0.00% 400 REPAIR/IVAINTENANCE. OTHER 0 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% TOTAL OTHERSERVICES & CHARGES $0 $0 $0 $0 $0 $0 0.00% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUO%VIENT 0 0 0 0 0 0 0.00% 680 OTHER EQUIPMEITUIMPROVEMENTS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL PARK MAINTENANCE $0 $0 $0 $0 $0 $0 27 Operating Transfers General Fund ACTIVITY DESCRIPTION: This department provides funds that will be moved to other City funds to finance other City projects or activities. GOALS: 1. Finance other future City projects with as little tax impact as possible on City property taxes. BUDGET COMMENTARY: Over the last three years the City transferred funds to finance future road improvements and the possible treatment and prevention of the Emerald Ash Bore (EAB) and other unidentified projects. No transfers are planned for 2014. BUDGET: DEPARTM EMT 4900 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE 720 TRANSFERS OUT 2007 Capital "rovement Bonds 0 0 0 0 0 0 0.00% Inprovement Fund - 401 Road Irnprovements 0 40,000 40,000 0 (30,000) 0 0.00% EAB Treatment/Prevention 0 10,000 10,000 0 0 0 0.00% Building Improvements/Replacement 0 20,000 10,000 0 (20,000) 0 0.00% Future Improvements 0 0 0 0 70,000 0 0.00% Annexation Reserve Account 0 0 0 0 50,000 0 0.00% City Hall Construction Fund - 402 0 0 0 0 0 0 0.00% Sewer Fund -601 0 0 0 0 0 0 0.00% TOTAL OPERATING TRANSFERS 0 70,000 60,000 0 70,000 0 000% 28 SPECIAL REVENUE FUNDS 29 PARK & PLAYGROUND FUND SPECIAL REVENUE FUND ACTIVITY SCOPE: The purpose of the Park & Playground Fund is to assist the City in meeting park acquisition and development needs. Revenues are collected from developers or property owners that develop their properties. Fees are based on assessed land value or number of lots available. Special Revenue Funds, including the Park & Playground Fund use the modified accrual basis of accounting, that is revenues are recognized when received and expenditure at the time the liability is incurred OBJECTIVES: Acquire and develop current and future parkland property. 2. Provide recreational facilities to all residents, including trails and walkways. MEASURABLE WORKLOAD DATA: 2010 2011 2012 2013 ACTUAL ACTUAL ACTUAL ESTIMATED No measurable workload data has been established for this fund. BUDGET COMMENTARY: Revenue source is park dedication fees paid on new construction and/or developments, interest earnings and any operating transfers. At this time there are no park improvements or equipment purchase to be funded from the Park Acquisition Fund in 2014. 30 BUDGET: REV FNUE BUDGET ACCT. # ACCOUNT DESCRIPTION 2010 ACTUAL 2011 ACTUAL 2012 ACTUAL 11/19/2013 2013 ADOPTED 10/14/13 ACTUAL 1111912013 2014 ADOPTED % CHANGE MISCELLANEOUS 33604 GRANTS $0 $0 $0 $0 $0 $0 0.00% 34785 PARK DEDICATION FEES 0 0 0 0 0 0 0.00% 36210 INTEREST INCOME 549 473 644 350 419 515 47.14% 36200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $549 $473 $644 $350 $419 $515 47.14% TOTAL REVENUES $549 $473 $644 $350 $419 $515 47.14% EXPENDITURE BUDGET SUPPLIES 210 OPERATING SUPPLIES - OTHER $0 $0 $0 $0 $0 $0 0.00% 235 LANDSCAPING MATERIALS 0 0 0 0 0 0 0.00% 226 SIGNS & SIGN MATERIALS 0 0 0 0 0 0 0.00% 250 SALESTAX 0 0 0 0 0 0 000% TOTAL SUPPLIES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 0 0 0 0 0,00% 304 LEGAL FEES 0 0 0 0 0 0 0.00% 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 400 RFRAIR/MAINTENANCE-OTHER 0 0 0 0 0 0 0.00% 540 EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL OTHERSERVICES & CHARGES $0 $0 $0 $0 $0 $0 0.00% CAPITAL OUTLAY 510 LAND 0 0 0 0 0 0 0.00% 580 OTHER IMPROVEMENTS 0 0 0 0 0 0 0.00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL E(PENDFURES FUND BALANCE-JANUARY 1 FUND BALANCE-DECEMBER 31 FUTURE IMPACTS: $0 $0 $0 $0 $0 $0 0.00% $37,022 $37,571 $38,044 $38,688 ' $38,688 $549 $473 $644 $350 1419 $39,107 $515 1.50% The future budget impacts will depend on the type and scope of park and playground improvements. 31 THIS PAGE INTENTIONALLY LEFT BLANK 32 DEBT SERVICE 33 FUNDS DEBT SERVICE FUNDS DESCRIPTION: The Debt Service Funds repay the outstanding debt obligations of the City of Gem Lake. Debt service funds use the modified accrual basis of accounting; however, the cash basis of accounting will be used for budgetary purposes only. The cash basis is used for budgeting to ensure that sufficient cash will be available to make required payments on the City's bonded indebtedness. OBJECTIVES: Retire all debt in a timely basis as scheduled. MEASURABLE WORKLOAD DATA 2011 2012 2013 2013 ACTUAL ACTUAL ACTUAL ESTIMATED Bond Rating Non -Rated Non -Rated Non -Rated Non -Rated Dec. 31 Debt Outstanding (In thousands) $1,255 $1,155 $775 $760 Net Debt Per Capita $3,194 $2,939 $1,952 $1,914 DEBT LIMITATIONS: All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Under this provision, the legal debt limit is 3.0% of the assessor's market value of the municipalities' tax base. Bond issues covered by this limit are those that are financed by property taxes unless at least 20% of the annual debt service costs are financed by special assessments or tax increments. At present the City has one bond issue that is subject to the debt limit: the 2007 Capital Improvement Plan Bonds. The City's current legal debt limit and debt margin is as follows: Legal Debt Limit (3% of Estimated Market Value) $2,311,725 Less: Outstanding Debt Subject to Limit (775,000) Legal Debt Margin as of January 1, 2013 $1,536,725 BUDGET COMMENTARY: The City's debt consists of a capital improvement plan bond for the construction of Heritage Hall which is repaid from a property tax levy. In 2013 the City paid off the outstanding principal balance of its two improvement bonds, which are included in this document as special assessments are still being collected. 34 BUDGET: REVENUE BUDGET 11119/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENTTAXES $49,570 $46,965 $44,786 $50,700 $24,699 $50,100 -1.18% 31002 DELINQUENT TAXES $383 ($359) $3,197 $0 $1,418 $0 0.00% 31003 FISCAL DISPARITY TAX $143 $519 $3,779 $0 $186 $200 0,00% 31004 PENALTIES & INTEREST $0 ($47) ($2,774) $0 $0 $0 0.00% TOTAL PROPERTY TAXES $50,096 $47,078 $48,988 $50,700 $26,303 $50,300 -0.79% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 55,642 53,696 67,183 55,241 41,623 56,655 2.56% 36102 DELINQUENTSPECWL ASSESSMEWFS 0 570 11,189 0 0 0 0.00% 36103 PENALTIES & INTEREST 18,009 15,575 1,977 9,541 0 0 -100.00% 36104 SPECIALASSESSMENTS- PRERAID/SNR 0 3,534 15,020 0 0 0 000% TOTAL FINES & FORFEITS $73,650 $69,841 $80,349 $64,782 $41,623 $56,655 -12.55/ MISCELLANEOUS 36210 INTEREST EARNINGS 4,231 3,244 4,068 2,342 1,473 3,272 39.71% 39000 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39200 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39300 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $4,231 $3,244 $4,068 $2,342 $1,473 $3,272 39,71% TOTAL REVENUES $127,977 $120,163 $133,405 $117,824 $69,399 $110,227 -6.46% CAPITAL OUTLAY 601 BOND PRINCIPAL 91,179 98,276 100,452 102,710 379,922 15,000 -85.40% 602 BOND INTEREST 68,203 54,539 50,688 46,754 46,755 32,955 -29.51% 603 FISCAL AGENT FEES 550 550 550 650 2,233 550 -15.38% 701 MISCELLANEOUS 0 0 0 0 0 0 0.00% 720 TRANSFERS OUT 0 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $149,932 $153,365 $151,690 $150,114 $428,910 $48,505 -67.69% TOTAL EXPENDITURES $149,932 $153,365 $151,690 $150,114 $428,910 $48,505 -6769% FUND BALANCE- JANUARY 1 EXCESS REVENUE OVER EXPENDITURES $376,805 ($21,956) $354,850 ($33,202) $321,648 ($18,285) $303,363' ($32,290) $303,363 ($359,511) ($56,148) $61722 FUND BALANCE-DECEMBER 31 $354,850 $321,648 $303,363 $271,073 ($56,148) $5,574 -9794% 35 2004 IMPROVEMENT BOND FUND DEPARTMENT: 2004 Improvement Bond SUPERVISOR: Finance Officer FUND #: 302 ACTIVITY #: 4700 ACTIVITY SCOPE: The 2004 Improvement Bond was issued to pay for the construction costs of the Scheuneman Road sanitary sewer and roadway reconstruction project. OBJECTIVES: None as this debt was retired in 2013. MEASURABLE WORKLOAD DATA: 2011 2012 2013 ACTUAL ACTUAL ACTUAL Bond Principal Retired $58,276 $60,452 $229,922 Bond Interest Paid $12,366 $10,190 $7,932 Special Assessments Collected $32,642 $77,360 $73,474 DEBT PAYMENT SCHEDULE: JAN. 1 DEBT YEAR DUE OUTSTANDING PRINCIPAL DUE Debt was retired in 2013 BUDGET COMMENTARY: 2014 ESTIMATE $0 $0 $38,609 INTEREST DUE This fund will receive its revenue from special assessments collected from benefited properties. 36 BUDGET: REVENUE BUDGET 11/19/2013 11/19/2013 AOCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS - CURRENT $41,523 $32,642 $48,750 $40,641 $33,462 $3B,609 -5.00% 36102 SPECIALASSESSMENTS- DELINQUENT 0 89 11.651 0 0 0 0.00% 36103 PENALTIES & INTEREST 12,342 8,261 1,939 6,096 0 0 -100.00% 36104 SPECA L ASSESSMENTS-PREPA IDISNR 0 3,534 15,020 0 0 0 000% TOTAL FNES & FORFEITS $53,864 $44,526 $77,360 $46,737 $33,462 $38,609 -17.397 MISCELLANEOUS 36210 INTEREST EA RNINGS 1,622 1,131 1,236 749 182 1,062 41.79% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS N 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $1,622 $1,131 $1,236 $749 $182 $1,062 41.79% TOTAL REVENUES $55,487 $45,657 $78,596 $47,486 $33,644 $39,671 -16.46% CAPITAL OUTLAY 600 BOND PRINCIPAL $56,179 $58,276 $60,452 $62,710 $229,922 $0 -100.00% 610 BOND INTEREST 14,463 12,366 10,190 7,932 7,932 0 -100.00% 620 FISCAL AGENT FEES 0 0 0 50 788 0 -100,00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $70,642 $70,642 $70,642 $70,692 $238,642 $0 -100.00% TOTAL EXPENDITURES $70,642 $70,642 $70,642 $70,692 $238,642 $0-100,00% FUND BALANCE- JANUARY 1 $147,022 $131,866 $106,881 $114,835' $114,835 ($90,163) FUND BALANCE - DECEMBER 31 37 0% 2007 CAPITAL IMPROVEMENT PLAN BOND FUND DEPARTMENT: 2007 Capital Improvement Plan Bond SUPERVISOR: Finance Officer FUND #: 304 ACTIVITY #: 4700 ACTIVITY SCOPE: The 2007 Capital Improvement Plan Bonds were issued to finance the construction of Heritage Hall. OBJECTIVES: Pay debt payments on a timely basis as scheduled. MEASURABLE WORKLOAD DATA: 2011 2012 2013 2013 ACTUAL ACTUAL ACTUAL ESTIMATE Bond Principal Retired $15,000 $15,000 $15'000 $15,000 Bond Interest Paid $34,755 $34,155 $33,555 $32,955 Property Tax Levy Collected $46,965 $48,988 $52,606 $50,300 DEBT PAYMENT SCHEDULE: JAN. 1 DEBT YEAR DUE OUTSTANDING PRINCIPAL DUE INTEREST DUE 2014 $775,000.00 $15,000.00 $32,955.00 2015 $760,000.00 $15,000.00 $32,355.00 2016 $745,000.00 $15,000.00 $31,755.00 2017 $730,000.00 $50,000.00 $30,430.00 2018 $680,000.00 $50,000.00 $28,380.00 2019 $630,000.00 $55,000.00 $26,213.75 2020 $575,000.00 $55,000.00 $23,931.25 2021 $520,000.00 $55,000.00 $21,621.25 2022 $465,000.00 $60,000.00 $19,177.50 2023 $405,000.00 $60,000.00 $16,597.50 2024 $345,000.00 $65,000.00 $13,878.75 2025 $280,000.00 $65,000.00 $11,035.00 2026 $215,000.00 $70,000.00 $8,065.00 2027 $145,000.00 $70,000.00 $4,950.00 2028 $75,000.00 $75,000.00 $1,687.50 38 BUDGET COMMENTARY: This fund will receive its revenue from a property tax levy. Annual debt service payments are the only expenditures budgeted in this fund. BUDGET: REV ENUE BUDGET 11119/2013 11N912013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENTTAXES $49,570 $46,965 $44,786 $50,700 $24,699 $50,100 -1.18% 31002 DELINQUENr TAXES 383 (359) 3,197 0 1,418 0 0.00% 31003 FISCAL DISPARMES TAXES 143 519 3,779 0 186 200 0,00% 31004 PENA LNES & INTEREST 0 (47) (2,774) 0 0 0 0.00% TOTAL FINES &FORFEITS $50,096 $47,078 $48,988 $50,700 $26,303 $50,300 -0.79% MISCELLANEOUS 36210 !INTEREST EA RNINGS 683 696 935 520 600 755 45.19% 39100 BOND PROCEFDS 0 0 0 0 0 0 0.00% 39200 TRA NSFERS 14 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $683 $696 $935 $520 $600 $755 45,19% TOTAL REVENUES $50,779 $47,774 $49,923 $51,220 $26,903 $51,055 -0.32% EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 0.00% 610 BOND INTEREST 35,355 34,755 34,155 33,555 33,555 32,955 -1,79% 620 FISCAL AGENT FEES 550 550 550 550 550 550 0,00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $50,905 $50,305 $49,705 $49,105 $49,105 $48,505 -1.22% TOTAL EXPENDITURES $50,905 $50,305 $49,705 $49,105 $49,105 $48,505 -1.22% FUND BALANCE- JANUARY 1 $83,638 $83,512 $80,981 FUND BALANCE- DECEMBER 31 39 $81,199 , $81,199 $58,997 $2,115 ($22.202) $2.550 -26.13% 2006 IMPROVEMENT BOND FUND DEPARTMENT: 2006 Improvement Bond SUPERVISOR: Finance Officer FUND #: 303 ACTIVITY #: 4700 ACTIVITY SCOPE: The 2006 Improvement Bonds were issued to finance road improvements on Big Fox Road, Little Fox Lane, Haven Lane, and Tessier Road. OBJECTIVES: None as this bond was retired in 2013. MEASURABLE WORKLOAD DATA 2011 ACTUAL Bond Principal Retired $25,000 Bond Interest Paid $7,418 Special Assessments Collected $21,054 DEBT PAYMENT SCHEDULE: JAN. 1 DEBT YEAR DUE OUTSTANDING Debt was retired in 2013 BUDGET COMMENTARY: 2012 2013 2013 ACTUAL ACTUAL ESTIMATE $25,000 $135,000 $0 $6,343 $5,268 $0 $18,009 $16,322 $18,046 PRINCIPAL DUE INTEREST DUE This fund will receive its revenue from special assessments levied against benefiting properties. The only expenditures are for the annual debt service payments on the debt. 40 BUDGET: REVENUE BUDGET 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # AOCOUNTDESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE 36101 SPECIAL ASSESSN04TS-CURRENT $14,119 $21,054 $18,433 $14,600 $8,161 $18,046 23.60% 36102 SPECIAL ASSESSMENTS -DELINQUENT 0 481 (462) 0 0 0 0.00% 36103 PENALTIES & INTEREST 5,667 7,314 38 3,445 0 0 -100.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0 0.00% TOTAL FINES & FORFEITS $19,786 $28,849 $18,009 $18,045 $8,161 $18,048 0.01% MISCELLANEOUS 36210 INTEREST EA RNINGS 1,925 1,417 1,897 1,073 691 1,455 35.60% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 000% TOTAL MISCELLANEOUS $1,925 $1,417 $1,897 $1,073 $691 $1,455 35.60% TOTAL REVENUES $21,712 $30,266 $19,906 $19,11B $8,852 $19,501 2.00% CAPITAL OUTLAY 600 BOND PRINCIPAL $20,000 $25,000 $25,000 $25,000 $135,000 $0 -100.00% 610 BOND INTEREST 8,385 7,418 6,343 5,267 5,268 0 -100.00% 620 FISCAL AGENT FEES 0 0 0 50 895 0 -100,00% 720 TRA NSFFRS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $28,385 $32,418 $31,343 $30,317 $141,163 $0 -100.00% TOTAL ID(PFNDTIIRES $28,385 $32,418 $31,343 $30,317 $141,163 $0-100.00% FUND BALANCE-JANUARY1 $146,145 $139,471 $137,319 $125,882' $125,882 ($6,429) EXCESS REVENUE OVER EXPENDITURES ($6,673) ($2,152) ($11,437) ($11,199) ($132,311) $19,601 FUND BALANCE - DECEMBER 31 $139,471 $137.319 $125.882 $114.683 IS64291 Eli n79 -na anot 41 THIS PAGE INTENTIONALLY LEFT BLANK Era CAPITAL IMPROVEMENT FUNDS 43 CAPITAL IMPROVEMENT FUNDS The Capital Improvement Funds pay the construction costs of the City's infrastructure improvements. Capital improvement funds use the modified accrual basis of accounting; however, the cash basis of accounting will be used for budgetary purposes only. The cash basis is used for budgeting to ensure that sufficient cash will be available to make all reauired payments. OBJECTIVES: Construct and replace the City's infrastructure on a timely basis, as scheduled or as needed. MEASURABLE WORKLOAD DATA: See the individual funds for their service levels. BUDGET COMMENTARY: See the individual funds for budget explanations. S! BUDGET: REVENUE BUDGET ACCT. # ACCOUNT DESCRIPTION 2010 ACTUAL 2011 ACTUAL 2012 ACTUAL 11/19/2013 2013 ADOPTED 10/14/13 ACTUAL 11/19/2013 2014 ADOPTED % CHANGE SPECW L ASSESSMENTS 36101 SPECIAL ASSESSMENTS 12,206 13,529 15,335 16.285 7,132 17,282 6.12% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 2,167 0 0 4,622 0 0.00% 36103 PENALTIES & INTEREST 1,383 1,851 144 671 1,210 0 -100.00% 36104 SPECIALASSESSMENTS-PRERAID/SNR 0 0 0 0 0 0 0.00% TOTAL SPECIAL ASSESSMENTS $13,589 $17,547 $15,479 $15,956 $12,964 $17,282 1.92% MISCELLANEOUS 36210 INTEREST EARNINGS ($797) ($557) $1,967 $641 $1.522 $1,550 141,81% 38200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 50,000 50,000 0 70,000 0 0,00% TOTAL MSCELLANBOUS ($797) $49,443 $51,967 $641 $71,522 $1,550 141.81% TOTAL REVENUES $12,792 $66,990 $67,446 $17,597 $84,486 $18,832 7.02% 302 ENGINEERING FEES 0 0 1,375 0 10,637 0 0.00% 304 LEGAL FEES 1,042 0 0 0 0 0 0,00% 335 ARCHITECT FEES 0 0 0 0 0 0 0.00% 308 OTHER PROFESSIONAL SERVICE 0 0 0 0 0 0 0,00% 309 MISCELLANEOUS 0 0 0 0 0 0 0,00% 310 CONFERENCE REGGRATIONS 0 0 0 0 0 0 0.00% 333 MEETING PREPARATION 0 0 0 0 0 0 0.00% 351 LEGAL NOTICE PUBICATIONS 0 0 0 0 0 0 0,00% 610 INTEREST 0 0 0 0 0 0 0.00% 620 FISCAL AGENT FEES 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $1,042 $0 $1,375 $0 $10,637 $0 0.00% CAPITAL OUTLAY 531 OTHER MPROVENENTS 0 0 0 45,000 0 0 -100.00% 520 BUILDING CONSTRUCTION 0 0 0 0 0 0 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $45,000 $0 $0 -100.00% TOTAL B(PENDITURES $1,042 $0 $1,375 $45,000 $10,637 $0-100.00% FUND BALANCE-JANUARY 1 ($57,571) ($45,821) $21,169 $87,240 ' $87,240 $161,089 B(CESS REVENUE OVER EXPENDMURES $11,750 $66,990 $66,071 ($27,403) $73,849 $18,832 FUNDBALANCE-DECENBER31 ($45,821) $21,169 $87,240 $59,837 $161,089 $179,921 200.69% 45 IMPROVEMENTFUND DEPARTMENT: Improvement Construction SUPERVISOR: City Engineer FUND #: 401 ACTIVITY #: 4800 ACTIVITY SCOPE: The Improvement Fund was established for current and future improvement projects within the City. OBJECTIVES: None. MEASURABLE WORKLOAD DATA: 2011 2012 2013 2014 ACTUAL ACTUAL ACTUAL ESTIMATED Since this fund was closed out there is no measurable workload data. BUDGET COMMENTARY: The major revenue source in the past was transfers of excess funds from the General Fund to help finance future building improvements and to set funds aside for possible emerald ash bore tree replacement/treatments. The expenditures budgeted for 2014 is for possible water extension to properties along Hoffman Road. 46 BUDGET: REVENUE BUDGET 11/19/2013 11/19/2013 AOCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE MISCELLANEOUS 36210 INTEREST EARNINGS $0 $37 $2,624 $912 $1,410 $1,760 92.98% 36200 MISCELLANEOUS 0 0 0 0 0 0 0,00% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN Road Improvements 40,000 40,000 0 0 0 0.00% EAB Treatment/Prevention 10,000 10,000 0 0 0 0.00% Building Improvements/Replacement 0 20,000 10,000 0 0 0 0.00% Future Inproverrents 0 0 0 0 70,000 0 0.00% TOTAL MISCELLANEOUS $0 $70,037 $62,624 $912 $71,410 $1,760 92.98% TOTAL REVENUES $0 $70,037 $62,624 $912 $71,410 $1,760 92.98% D(PENDITURE BUDGET OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 1,375 0 1,902 0 0.00% 304 LEGAL FEES 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES B CHARGES $0 $0 $1,375 $0 $1,902 $0 0.00% CAPITAL OUTLAY 531 OTHER IMPROVEMENTS 0 0 0 45,000 0 0 -100.00% WATER IMPROVEMENTS 0 0 0 0 0 8,900 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $0 $0 $0 $45,000 $0 $8,900 -80.22% TOTAL EXPENDITURES $0 $0 $1.375 $45,000 $1,902 $8,900 -80.22% FUND BALANCE- JANUARY 1 $0 $0 $70,037 $131,286� $131,286 $200,794 EXCESS REVENUE OVER EXPENDITURES $0 $70,037 $61,249 ($44,088) $69,508 ($7,140) FUND BALANCE- DECEMBER 31 $0 $70.037 $131.286 $87.198 $900 7" R193 ece »o naw 47 SCHEUNEMAN ROAD IMPROVEMENT FUND DEPARTMENT: Scheuneman Road Improvement SUPERVISOR: City Engineer FUND #: 403 ACTIVITY #: 4800 ACTIVITY SCOPE: The Scheuneman Road Improvement fund recorded bond proceeds and sewer improvement and road resurfacing costs on Scheuneman Road. OBJECTIVES: None. MEASURABLE WORKLOAD DATA: 2011 2012 2013 2014 ACTUAL ACTUAL ACTUAL ESTIMATED No service levels have been established for this fund. BUDGET COMMENTARY: Revenue sources include special assessments to benefitting properties. Expenditures were for infrastructure improvements which included the installation of sanitary sewer and resurfacing/reconstructing the road way. EN BUDGET: REVENUE BUDGET 11/19/2013 11/19/2013 ACCT. 2011 2012 2012 2014 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SPECIAL ASSESSMENTS 36101 SPECIALASSESSNFNTS-CURRENT 12,206 13,529 15,335 16,285 7,132 17,282 6.12% 36102 SPECIAL ASSESSMENTS - DELINQUENT 0 2,167 0 0 4,622 0 0.00% 36103 PENALTIES & INTEREST 1,383 1,851 144 671 1,210 0 -100,00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0 000% TOTAL SPECIAL ASSESSMENTS $13,589 $17,547 $15,479 $16,956 $12,964 $17,282 1.92% MISCELLANEOUS 36210 INTEREST EARNINGS ($1,353) ($907) ($1,089) ($507) ($154) ($555) 9.47% 36200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS ($1,353) ($907) ($1,089) ($507) ($154) ($555) 9.47% TOTAL REVENUES $12,236 $16,640 $14,390 $16,449 $12,810 $16,727 1.69% OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 0 0 0 0 0.00% 304 LEGAL FEES 0 0 0 0 0 0 000% TOTAL OTHER SERVICES & CHARGES $0 $0 $0 $0 $0 $0 0.00% CAPITAL OUTLAY 531 OTHER MPROVEVENTS 0 0 0 0 0 0 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL D(PENDITURES $0 $0 $0 $0 $0 $0 0.00% FUND BALANCE- JANUARY 1 ($83,261) ($71,025) ($54,385) ($39,995)1 ($39,995) ($27,185) FUND BALANCE-DECEMBER31 FUTUREIMPACTS: This fund has a deficit balance that will be eliminated over time as special assessments are collected. 49 HOFFMAN ROAD IMPROVEMENT FUND DEPARTMENT: Hoffman Road Improvement SUPERVISOR: City Engineer FUND #: 404 ACTIVITY #: 4800 ACTIVITY SCOPE: The Hoffman Road Improvement Fund is used to provide the City's share of future road improvements/maintenance on Hoffman Road. OBJECTIVES: Improve and maintain Hoffman Road on timely basis. MEASURABLE WORKLOAD DATA: 2011 2012 2013 2014 ACTUAL ACTUAL ACTUAL ESTIMATED No service levels have been established for this fund. BUDGET COMMENTARY: Currently the only revenue source is interest earnings on the cash balance of this fund. No improvements or maintenance is planned for 2014, which results in no expenditures being budgeted. 50 BUDGET: REVENUE BUDGET 11/19/2013 11/19/2013 ACCT. 2011 2012 2012 2014 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE MISCELLANEOUS 36210 INTEREST EARNINGS $556 $313 $432 $236. $266 $345 46.19% 36200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 000% TOTAL MISCELLANEOUS $556 $313 $432 $236 $266 $345 46.19% TOTAL REVENUES $556 $313 $432 $236 $266 $345 46.19% OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 0 0 8,735 0 0.00% 304 LEGAL FEES 0 0 0 0 0 0 0.00% 385 ROWMAINTENANCE 1,042 0 0 0 0 0 000% TOTAL OTHER SERVICES& CHARGES $1,042 $0 $0 $0 $8,735 $0 0.00% CAPITAL OUTLAY 531 OTHER $APROV EVENTS 720 OPERATING TRANSFERS TOTAL CAPITAL OUTLAY TOTAL EXPENDITURES FUND BALANCE-JANUARY 1 EXCESS REVENUE OVER EXPEN FUND BALANCE -DECEMBER 31 FUTURE IMPACTS: 0 0 0 0 0 0 0.00% 0 0 0 0 0 0 0,00% $0 $0 $0 $0 $0 $0 0.00% $1,042 $0 $0 $0 $8,735 $0 000% $25,689 $25,203 $25,516 $25,948 � $25,948 $17,479 ($486) $313 $432 $236 MR deal xsds Future impacts would be the cost of the improvements/maintenance on Hoffman Road. 51 THIS PAGE INTENTIONALLY LEFT BLANK 52 ENTERPRISE FUNDS 53 SEWER OPERATING FUND ENTERPRISE FUNDS ACTIVITY SCOPE: The Sewer Operating Fund is the only Enterprise Fund the City has. It is responsible for the maintenance of all lift stations and sanitary sewer lines in the City. The Sewer Operating Fund is self-sustaining from revenues derived from utility charges. OBJECTIVES: 1. Keep all lift stations and sewer lines functioning safely and efficiently. MEASURABLE WORKLOAD DATA 2011 2012 2013 2014 ACTUAL ACTUAL ACTUAL ESTIMATED Gals of Sewage Treated (Millions) 7.93 7.00 9.10 9.00 Miles of Sewer Lines Service Connections BUDGET COMMENTARY The main revenue source is sewer revenues, which are based on the number of sewer connections, past sewer usage and sewer rate. Sewer charges are estimated to generate revenues of $42,000 and no rate increase was used to estimate 2014 revenues. Interest income is another revenue source and is based on estimated interest earning. On the expense side, supplies budgets for 2014 were left at 2013 expense levels based on past costs. The largest expense within Other Services and Charges are the M.C.E.S. Charges for sewer treatment. These charges are based on actual sewer flows and sewer treatment costs charged by the M.C.E.S. The City's flows have increased over the past year and the cost of treating waste water has also increased. For 2014 the M.C.E.S. Charges have increased 21.12% to $19,488. The City also annually budgets to flush (clean) sewer lines to prevent sewer backups. For 2014 $8,000 is budgeted to flush sewer lines. 54 BUDGET: REVENUE BUDGET 11/19/2013 11/19/2013 ACCT. 2010 2011 2012 2013 10/14/13 2014 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERVCIES 34410 LOCAL SAC CHARGES $671 $0 $7,070 $0 $1,815 $0 0.00% 34500 SEWER REVENUES - RESIDENTIAL 9,392 9,632 11,481 9,600 8,124 10,000 4.17% 34600 SEWER REVENUES -COMv1ERCAL 30,667 34,400 34,400 32,000 23,234 32,000 0.00% 34640 CERTIFIED SEINER REVENUES 0 3,397 0 0 320 0 0.00% 34650 PENALTIES & INTEREST 2.188 2,351 4,187 0 2,368 2,000 0.00% TOTAL CHARGES FOR SERVICES 42,918 49,780 57,138 41,600 35,861 44,000 5.777 SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 0 0 0 0 0 0 0.00% TOTAL SPECIAL ASSESSMENTS $0 $0 $0 $0 $0 $0 0.00% MISCELLANEOUS 36200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 36210 INTEREST INCOME 4,391 3,658 5,478 2,884 3.815 4,555 57.94% 39200 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $4,391 $3,658 $5,478 $2,884 $3,815 $4.555 57,94% TOTAL REVENUES $47,309 $53,438 $62,616 $44.484 $39,676 $48,555 ' 915% SUPPLIES 201 OFFICESUPPLIES 0 253 359 500 49 500 0.00% 210 OPERATING SUPPLIES 0 0 0 0 0 0 0.00% 212 POSTAGE 202 0 167 200 65 200 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $202 $253 $526 $700 $114 $700 0.00% 301 AUDITING&ACCOUNTING SERVICES 1,960 2,000 2,080 2,120 2,341 2,450 15.57% 302 ENGINEERING FEES 3,650 0 1,478 2.500 280 2,500 0.00% 318 M.CES. CHARGES 20,362 16,773 13,234 16,090 14,749 19.488 21.12% 319 LOCATES 488 407 635 550 537 600 9,09% 329 FINANCIAL SERVICE 3,110 3,291 1,431 4,000 2,992 4,000 0.00% 334 COMPUTER SERVICES 497 538 554 675 388 500 -13.04% 400 REPAIR/ MAINTENANCE 0 0 45 4,000 1,500 4.000 0,00% 420 DEPRECIATION 12,457 12,457 12,457 12,500 0 12,500 0.00% 433 DUES & SUBSCRIPTIONS 15,758 0 0 0 0 0 0.00% 460 SEWER INSPECTIONS 250 0 0 0 0 0 0,00% 461 SEWER FLUSHING 4,778 0 5,023 8,000 0 8,000 59.27% TOTAL OTHER SERVICES & CHARGES $63,309 $35,466 $36,937 $50,335 $22,787 $54,038 7,36% CAPITAL OUTLAY 540 HEAVY MACHINERY/EOUIPNENT 0 0 0 0 0 0 0.00% 530 OTHER EQUIPMENT &IMPROVEMENTS 0 0 0 0 0 0 0,00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CA PETAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL EXPENDITURE BUDGET $63,511 $35,719 $37,463 $51,035 $22,901 $54738 726% FUND BALANCE-JANUARY1 $306,060 $302,315 $332,491 $370,101 $370.101 $386,876 EXCESS REVENUE OVER EXPENDITURES ($16,201) $17,719 $25,153 ($6,551) $16,775 ($6,183) DEDUCTINFRASTRUCTIONADDTIONS $0 $0 $0 $0 $0 $0 ADD BACK DEPRECIATION $12,457 $12,457 $12,457 $12,500 $0 $12,500 FUND BALANCE- DECEMBBR 31 $302.315 8332 491 x37n 1n1 ¢17A nsn 61.1 THIS PAGE INTENTIONALLY LEFT BLANK N'17 APPENDIX SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION The following is a summary of certain statutory provisions effective beginning 2011 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota. Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value Each parcel of real property subject to taxation must, by statute, be appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions, all property is valued at its market value, which is the value the assessor determines to be the price the property to be fairly worth, and which is referred to as the "Estimated Market Value." Taxable Market Value The Taxable Market Value is the value that property taxes are based on, after all reductions, limitations, exemptions and deferrals. It is also the value used to calculate a municipality's legal debt limit. Indicated Market Value The Indicated Market Value is determined by dividing the Taxable Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The Indicated Market Value serves to eliminate disparities between individual assessors and equalize property values statewide. Net Tax Caoacit The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type of property classification against the Taxable Market Value. Class rate percentages vary depending on the type of property as shown on the 101 page of the Appendix. The formulas and class rates for converting Taxable Market Value to Net Tax Capacity represent a basic element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, plus multiplying the referendum market value by the market value rate. Property Tax Payments and Delinquencies (Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year proceeding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. The county treasurer is responsible for collecting all property taxes within the county. Real estate 58 and personal property tax statements are mailed out by March 31. One-half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 2% to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1 % penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property owned by a tax-exempt entity, but which is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the county auditor files a publication of legal action and a mailing notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14%. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40%; Township or city - 20%; and school district - 40%. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the renter's credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, county program aid and disparity reduction aid. Debt Limitations All Minnesota municipalities (county, cities, townships and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregation of the principal of the following: Obligations issued for improvements which are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 59 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks systems and public lighting, heating or power systems, and any combination thereof, or for any other public convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provision of law authorizing their issuance. 9. Certain obligations to pay pension fund liabilities. 10. Debt service funds for the payment of principal and interest on obligations other than those described above. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality which issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly know as "Fiscal Disparities" was first implemented for taxes payable in 1975. Forty percent of the increase in commercial -industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven -county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area -wide tax base shall be distributed back to each assessment district. .E STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS General 2001 Net Tax Capacity 2002-2014 Net Tax Capacity Classification Est. Mkt. Value % of EMV Est. Mkt. Value % of EMV RESIDENTIAL Homestead First $76,000 1.00% First $500,000 1.00% Over $76,000 1.65% Over $500,000 1.25% Non -Homestead First $76,000 1.20% First $500,000 1.00% Over $76,000 1.65% Over $500,000 1.25% AGRICULTURAL LAN D: Homestead First $115,000 0.35% First $600,000 0.55% $115,000-$600,000 0.80% Over $600,000 1.00% Over $600,000 1.20% Non -Homestead 100% of EMV 1.00% 100% of EMV 1.00% COMMERCIAL / INDUSTRIAL First $150,000 2.40% First $150,000 1.50% Over $150,000 3.40% Over $150,000 2.00% $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 CITY PROPERTY TAXES (no change in ESTIMATED market value) 4110UNUU41 If, lit �ZbU,000i$235,260 $350,000/$344,260 $450,0001$450,000 $550,000/$550,000 TAXABLE MARKET VALUE MACTUAL2010 13ACTUAL2011 BACTUAL2012 MACTUAL2013 13PROPOSED2014 61 i $2,000 $1,800 $1,600 $1,400 $1200 $1,000 $800 $600 $400 $200 $0 CITY PROPERTY TAXES (12.0%decrease in ESTIMATED market value) $1 SU,0004113,t1 11 $250,000/$214,278 $350,0004314,885 $450,000/$415,350 $550,000/$507,650 TAXABLE MARKET VALUE EACTUAL2010 MACTUAL2011 MACTUAL2012 BACTUAL2013 EPROPOSED 2014 CITY OF GEM LAKE PROPERTY TAX CHANGES Final 2011 2012 2013 2014 GENRALLEVY 268,234 222,172 204,242 180,119 DEBT LEVY GENERALDEBTLEVY 0 0 0 0 CAPITAL IMPROV. PLAN BONDS 52,000 51,300 50,700 50,100 20141MPROV. (ANNEXATION) BONDS 0 TOTALDEBTLEVY 52,000 51,300 50,700 50,100 TOTAL PROPERTY TAX LEVY 320,234 273,472 254,942 230,219 LESS: FISCAL DISPARITIES 5,549 4,636 5,394 NET PROPERTY TAXES 320,234 267,923 250,306 224,825 % CHANGE -19.10% -16.34% -31.30% -10.18% TAX CAPACITY TAX RATE MEDIAN VALUE HOME TAX CAPACITY CITY TAXES 1,101,546 1,022,048 912,518 848,243 29.071% 26.214% 27.430% 26.505% 62 247,000 228,100 200,800 2,470 2,281 2,008 $647.49 $625.68 $532.22 CITY OF GEM LAKE, MN City Hall - 4200 Otter Lake Road Gem Lake, MN 55110 RESOLUTION NO.2013-15 19 NOVEMBER 2013 A RESOLUTION ADOPTING THE FINAL GENERAL FUND BUDGET AND FINAL AMOUNT TO BE RAISED BY PROPERTY TAXATION FOR THE YEAR 2014 WHEREAS, the City Treasurer has presented a TOTAL (Proposed) Budget of $419,376.00 which includes a General Tax Levy of $180,119.00 and a Debt Tax Levy of $50,100.00 for fiscal and calendar year 2014 based upon best estimates of costs for running the City of Gem Lake in 2014; and WHEREAS, the City Council did review, on November 19, 2013, the TOTAL Budget and Tax Levy for 2014 including all revisions thereto as of the date first written. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Gem Lake does formally adopt the 2014 Final General Fund Budget of $316,133.00 and the Final Property Tax Levy of $230,219.00 which includes a General Tax Levy of $180,119.00 and a Debt Levy of $50,100.00 for 2014 as prepared by the City Treasurer and amended by the City Council; BE IT FURTHER RESOLVED that the City Clerk is charged with Certifying said Tax and Debt Levy to Ramsey County Property Taxation and other government bodies for whom this information is required. The foregoing Resolution was offered by Councilor James Lindner and was supported by Councilor Gretchen A tig-Swomley and was declared adopted based upon the following vote: NAME UZPEN BOSAK LBVDNER KUNY ARTIG- SWOMLEY Vote I Yes Yes Yes Yes Yes Attest I, WILLIAM F. SHORT, the duly qualified City Clerk for the City of Gem Lake, County of Ramsey, State of Minnesota, do hereby certify that the foregoing Resolution is a true and accurate representation of action taken my the City Council of the City of Gem Lake on the date first written. Look for us on the World Wide Web at gemlakemn.org 63 GLOSSARY OF TERMS ACCOUNT: A term used to identify an individual asset, liability, expenditure control, revenue control, or fund balance. ACCOUNTS PAYABLE: Amounts owed to others for goods or services received. ACCOUNTS RECEIVABLE: Amounts due from others for goods furnished or services rendered. ACCOUNTING SYSTEM: The total set of records and procedures which are used to record, classify and report information on financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned and expenditures are recorded when goods and services are received. ACTIVITY: A specific and distinguishable line of work performed by one or more organizational components of a governmental unit for the purpose of accomplishing a function for which the governmental unit is responsible. For example "Code Enforcement is an activity performed in the discharge of the "Public Safety" function. ADOPTION: The formal action taken by the Town Board to authorize or approve the budget AD VALOREM: In proportion to value. A basis for levying taxes upon property. AGENCY FUND: A fund consisting of resources received and held by the governmental unit as an agent for others or other funds of the governmental unit. APPROPRIATION: An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is limited in amount to the time it may be expended. ASSESSED VALUATION: Value placed upon real estate or other property as a basis for levying taxes. ASSESSMENTS: Charges made to parties for actual services or benefits received. ASSETS: Property owned by a governmental unit, which has a monetary value. AUDIT: The examination of documents, records, reports, systems of internal control, accounting and financial procedures, and other evidence for one or more of the following purposes: (a) To ascertain whether the statements prepared from the accounts present fairly the financial position and the results of financial operations of the constituent funds and balanced account groups of the governmental unit in accordance with generally accepted accounting principals applicable to governmental units and on a basis consistent with that of the preceding year. (b) To determine the propriety, legality and mathematical accuracy of a governmental unit's financial transactions. (c) To ascertain whether all financial transactions have been properly recorded. (d) To ascertain the stewardship of public officials who handle and are responsible for the financial resources of a governmental unit. BALANCED BUDGET: A budget in which estimated revenues, including operating transfers from other funds equals estimated expenditures, including operating transfers to other funds. A balanced budget would have no effect on fund balance/fund equity. The Township's policies require the General Fund budget to be balanced. BOND: A written promise, generally under seal, to pay a specified sum of money, called the face value or principal amount, at a fixed time in the future, called the date of maturity, and carrying interest at a fixed rate, usually payable periodically. BONDED INDEBTEDNESS: Outstanding debt by issues of bonds, which are repaid by ad valorem or other revenue. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. BUDGET DOCUMENT: The official written statement prepared by the Clerk/Treasurer and Finance Officer of the Township which presents the proposed budget to the Town Board. BUDGET BODY MESSAGE: A general discussion of the proposed budget presented in writing as a part of the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the Clerk/Treasurer. BUDGET CALENDAR: The schedule of key dates, which a government follows in the preparation and adoption of the budget. BUDGETARY CONTROL: The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitation of available appropriations and available revenues. CAPITAL ASSETS: Assets with a value of $1,000 or more and a useful life of 3 years or longer. CAPITAL EXPENDITURE: Assets with an initial, individual cost of more than $1,000 and an estimated useful life in excess of three years. CAPITAL IMPROVEMENT BUDGET: A plan of proposed capital expenditures and a means of financing them. The capital budget is enacted as part of the complete annual budget. CAPITAL PROGRAM: A plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long-term work program or otherwise. It sets forth each project or other contemplated expenditure in which the government is to have a part and specifies the full resources estimated to be available to finance the projected expenditures. CAPITAL PROJECTS FUNDS: To account for financial resources to be used for the acquisition or construction of major capital facilities. CASH BASIS: The method of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid. CERTIFIED LEVY: Total tax levy of a jurisdiction, which is certified to the County Auditor. CHARGES FOR SERVICES: Charges for current services rendered. 65 CHART OF ACCOUNTS: The classification system used by a government entity to organize the accounting for various funds. CONSUMER PRICE INDEX (CPI): A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation). CONTINGENCY: Budget for expenditures which cannot be placed in departmental budgets, primarily due to uncertainty about the level or timing of expenditures when the budget is adopted. The contingency also serves as a hedge against shortfalls in revenues or unexpected expenditures. CURRENT: A term which, applied to budgeting and accounting, designates the operations of the present fiscal period as opposed to past or future periods. DEBT: An obligation resulting from the borrowing of money or from the purchase of goods and services. DEBT LIMIT: The maximum amount of gross or net debt, which is legally permitted. DEBT MARGIN: The amount of available debt, which may be issued by a governmental unit before reaching its debt limit. DEBT SERVICE FUNDS: To account for the accumulation of resources for payment of general long-term debt. DEPARTMENT: Basic organizational unit of government, responsible for carrying out related functions. DEPRECIATION: Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. DISTINGUISHED BUDGET PRESENTATION AWARDS PROGRAM: A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. EFFECTIVE BUYING INCOME (EBI): A statistical measure of buying power of an area or group of individuals. ENTERPRISE FUNDS: To account for operations that are financed and operated in a manner similar to a private business enterprises, where the intent of the governing body is that the cost of providing services are to be recovered primarily on a user -charge basis to the general public. ESTIMATED MARKET VALUE: Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. EXPENDITURE: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payment have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made. FINES: Revenues from penalties imposed for violation of laws or regulations. W FISCAL DISPARITIES: A Minnesota law enacted in 1975 which provides for the pooling of 40 percent of all new commercial and industrial property valuation in the seven county metropolitan area and then redistributed to taxing jurisdictions according to specific criteria. FISCAL POLICY: A government's policies with respect to revenues, spending, and debt management as these relate to government services, programs and capital investment. Fiscal Policy provides an agreed -upon set of principles for the planning and programming of budgets and their funding. FISCAL YEAR: The budget and accounting year that begins on the first day of January and ends on the last day of December of each year. FIXED ASSETS: Assets of a long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment. FULL TIME EQUIVALENT (FTE): The number of employee hours (2,080) needed to be equal to one full time employee. Several part time employees may be combined to make one full time equivalent. FUNCTION: A group of related activities aimed at accomplishing a major service or regulatory program for which the government unit is responsible. FUND: An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The difference between fund's assets and fund liabilities (the equity) in governmental funds. FUND BALANCE —ASSIGNED: Segregation of a portion of fund balance to indicate the government's intent to use the resources for specific purposes where the specific purposes are identified by either the government's highest level of decision -making authority or a body or official that has been delegated the authority to do so by the governing body. FUND BALANCE —COMMITTED: Segregation of a portion of fund balance that represents resources whose use is subject to a legally binding constraint that is imposed by the government itself at its highest level of decision -making authority and that remains legally binding unless removed in the same manner. FUND BALANCE — NONSPENDABLE: Segregation of a portion of fund balance to indicate that the amount cannot be spent because the resources are not in spendable form, such as inventories or prepaid items. FUND BALANCE — RESTRICTED: Segregation of a portion of fund balance that represents resources whose use is subject to externally enforceable constraints. FUND BALANCE — UNASSIGNED: The difference between the total fund balance in a governmental fund and its nonspendable, restricted, committed, and assigned components. Only the general fund may report positive amounts of unassigned fund balance. GENERAL FUND: Accounts for the general operation of the Township and all financial resources except those to be accounted for in another fund. 67 GENERAL GOVERNMENT: Expenditures, which represents a set of accounts, to which are charged the expenditures for operating the Township. GENERAL OBLIGATION BONDS: When a government pledges its full faith and credit to the repayment of the bonds it issues, than those bonds are general obligation (GO) bonds. GOAL: A statement of broad direction, purpose or intent based on the need of a community. A goal is general and timeless; that is, it is not concerned with a specific achievement in a given period. GOVERNMENTAL ACCOUNTING: The composite of analyzing, recording, summarizing, reporting, and interpreting the financial transactions of governmental units and agencies. GOVERNMENTAL FUND TYPES: Funds used to account for the acquisition, use and balances of expendable financial resources and the related current liabilities - except those accounted for in proprietary funds and fiduciary funds. In essence, these funds are accounting segregation of financial resources. Under current GAAP, there are four governmental fund types: general, special revenue, debt service and capital projects. GRANT: A contribution of assets by one governmental unit or other organization to another. Grants are usually made for specified purposes. HOMESTEAD AND AGRICULTURAL CREDIT (HACA): A form of state paid property tax relief for farm property and owner occupied homes. IMPROVEMENT BONDS: Bonds payable from the proceeds of special assessments from properties benefiting from an improvement. IMPROVEMENTS: Buildings, other structures, and other attachments or annexations to land which are intended to remain so attached or annexed, such as sidewalks, trees, drains, and sewers. INFLOW/INFILTRATION (1/1): The term used to describe clean water entering into the sanitary sewer system. INTERFUND TRANSFERS: Amounts transferred from one fund to another. INFRASTRUCTURE: Assets which are immovable and of value only to the governmental unit (i.e. roads, gutters, sewer lines). INTERGOVERNMENTAL REVENUES: Revenues from other governments in the form of grants, entitlement, or shared revenues. INVESTMENTS: Securities held for the production of income in the form of interest. LEVY: (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes special assessments, or service charges imposed by a governmental unit. LICENSES: Revenues received from the sale of business and non -business licenses. LIMITED MARKET VALUE: The amount the market value of a property can increase from one year to the next for calculating property taxes. The limited market value system was phased -out by the State of Minnesota. 68 LINE ITEM: A specific item or group of similar items defined by detail in a unique account in the financial records. LOCAL GOVERNMENT AID (LGA): Intergovernmental revenue from the state to municipalities to help fund general expenditures. LONG-TERM DEBT: Debt with a maturity of more than one year after the date of issuance. MAINTENANCE: The upkeep of physical properties in condition for use or occupancy. MARKET VALUE EXCLUSION (MVE): A portion of a property's market value that is not included in the property tax calculation based on a formula set by the State of Minnesota. This exclusion reduces the taxable market value. MARKET VALUE HOMESTEAD CREDIT (MVHC): State paid property tax reduction on owner occupied homes based on the properties market value. MISCELLANEOUS: Revenues or expenditures not classified in any other revenue or expenditure category. MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and/or available revenues, which should be accrued to reflect properly the tax levied and revenue earned. NET POSITION —GENERAL GOVERNMENT: The difference between general government asset and liability accounts reported in the government -wide financial statements. OBJECT OF EXPENDITURE: Expenditure classifications based upon the types or categories of goods and services purchased. OBJECTIVE: Desired output oriented accomplishments, which can be measured and achieved within a given time frame. OPERATING BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for the calendar year and the proposed means of financing them. OPERATING EXPENSE: The cost for personnel, material and equipment required for a department to function. OPERATING REVENUE: Funds that the government receives as income to pay for ongoing operations. Operating revenues are used to pay for day-to-day services. OPERATING TRANSFERS: Amounts transferred from one fund to another, shown as expenditure in the originating fund and revenue in the receiving fund. ORDINANCE: A formal legislative enactment by the Town Board. PAY-AS-YOU-GO BASIS: A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing. m PERFORMANCE MEASURE: See Service Levels. PERSONAL SERVICES: Expenditures for salaries, wages, and fringe benefits of employees. PROGRAM: A group of related activities performed by one or more organizational units for the purpose of accomplishing a function for which the governmental unit is responsible. PROJECT: A plan of work, job assignment, or task. PROPRIETARY ACCOUNTS: Those accounts which show actual financial position and operation, such as actual assets, liabilities, reserves, fund balances, revenues, and expenditures, as distinguished from budgetary accounts. PUBLIC SAFETY: To account for expenditures related to the protection of persons and property. PUBLIC WORKS: To account for expenditures for the maintenance of Township property and infrastructure. PURPOSE: A broad statement of the goals, in terms of meeting public service needs, that a department is organized to meet. REFUNDING BONDS: Bonds issued to retire bonds already outstanding. REIMBURSEMENT: Cash or other assets received as a repayment of the cost of work or services performed or of other expenditures made for or on behalf of another governmental unit or department or for an individual, firm, or corporation. RESERVE: An account which records a portion of the fund balance which must be segregated for some future use and which is, therefore, not available for further appropriation or expenditure. RESOLUTION: A special or temporary order of a legislative body, an order of a legislative body requiring less legal formality than an ordinance or statute. RESOURCES: The actual assets of a governmental unit, such as cash, plus contingent assets such as estimated revenues applying to the current fiscal year not accrued or collected, and bonds authorized and not issued. REVENUE: The term designates an increase to a fund's assets which: 1) does not increase a liability; 2) does not represent a repayment of an expenditure already made; 3) does not represent a cancellation of certain liabilities; and 4) does not represent an increase in contributed capital. REVENUE BOND: A bond that is backed by a particular revenue source such as water user fees. SERVICE LEVELS: Data to determine how effective or efficient a program is in achieving its objective. SPECIAL ASSESSMENT: A compulsory levy made by a local government against certain properties to defray part or all of the cost of a specific improvement or service which is presumed to be of general benefit to the public and of special benefit to such properties. SPECIAL REVENUE FUND: To account for revenue derived from specific revenue sources that are legally restricted for specific purposes. 70 SY: Abbreviation for square yard, which is how sealcoating and street overlay projects are measured. TAXABLE MARKET VALUE: That portion of a property's market value that is used to calculate property taxes. TAX CAPACITY: An amount determined by a percentage of a property's market value, which is than applied to the tax rates of taxing jurisdictions affecting the property to determine the amount of property taxes owed. The current tax rates and property classifications can be found on page 135. TAX CAPACITY RATE: Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. TAX CLASSIFICATION RATE: Rate at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type (residential, commercial, farm, etc.) and, in some cases there are two tiers of classification rates, with the rate increasing as the estimated market values increases. TAX INCREMENT FINANCING (TIF): Financing tool originally intended to combat severe blight in areas, which would not be redeveloped "but for" the availability of government subsidies derived from locally generated property tax revenues. TAX LEVY: The total amount to be raised by general property taxes for the purpose stated in the resolution certified to the county auditor. TAX RATE: The amount applied to tax capacity to determine the taxes generated by the property. TAXES: Compulsory charges levied by a governmental unit for the purpose of financing services performed for the common benefit. TRUST AND AGENCY FUNDS: Funds used to account for assets held by a government in a trust capacity or as an agent for individuals, private organizations, other governments and/or other funds. TRUST FUND: A fund consisting of resources received and held by the governmental unit as trustee, to be expended or invested in accordance with the conditions of the trust. UNBALANCED BUDGET: A budget which undesignated fund balance or reserves are used in order to balance estimated revenues to estimated expenditures or expenses. UNRESERVED FUND BALANCE: The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. USER FEES: The payment of a charge for direct receipt of a public service by the party benefiting from the service. WORKLOAD INDICATOR: A unit of work to be done. 71 ACRONYMS ACS Animal Control Services CAFR Comprehensive Annual Financial Report CD Certificate of Deposit CIP Capital Improvement Plan CID Commercial Paper CPI Consumer Price Index HACA Homestead and Agricultural Credit Aid EBI Effective Buying Income EDA Economic Development Authority EMV Estimated Market Value FHLB Federal Home Loan Bank FNMA Federal National Mortgage Association FTE Full Time Equivalent GAAP Generally Accepted Accounting Principals GASB Governmental Accounting Standards Board GFOA Government Finance Officer's Association GO General Obligation I/1 Inflow/Infiltration LGA Local Government Aid MCES Metropolitan Council Environmental Services MVE Market Value Exclusion MVHC Market Value Homestead Credit SAC Sewer Availability Charge SY Square Yard TIF Tax Increment Financing TVA Tennessee Valley Authority VLAWMO Vadnais Lake Area Water Management Organization WAC Water Availability Charge WBLCD White Bear Lake Conservation District 72