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Home My WebLink About2021 Adopted BudgetCITY OF GEM LAKE 2021 BUDGET Adopted By City Council 11/17/2020 Table of Contents How to Read the Budget .......................................... 1 BudgetMessage ...................................................... 2 Fund Structure and Basis of Budgeting ......................... 3 Budget Summary ...................................................... 5 GeneralFund ........................................................ 7 Special Revenue Funds ............................................. 29 Debt Service Funds .................................................. 33 Capital Improvement Funds ....................................... 45 Enterprise Funds......................................................55 Appendix..................................................................63 Glossary of Terms.....................................................70 HOW TO READ THE BUDGET The budget docurent 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. It 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. CITY OF GEM LAKE, MN City Hall - 4200 Otter Lake Road Gem Lake, MN 55110-3763 - Telephone 651-747-2790 E-mail City(&genilakeNIN.org City Council Members, Citizens and Others: It is my privilege to present the 2021 budget for the City of Gem Lake. This budget, as adopted by the City Council identifies how the City resources will be spent in 2021. 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 2021 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 to funds to hire a building/development inspector to ensure city codes are followed. Also for 2021, the City has included increases to both the police and fire budgets and a contingency budget of $10,000, The Ice and Snow Removal budget was decreased from 2020 budgeted expenditure levels. Finally, $25,000 is being budgeted to fund future capital projects in the City. On the revenue side, the largest revenue source is property taxes, which make up almost 90.49% of total revenues for the City. The 2021 property tax levy is increased 0.881 % and the City's tax capacity also increase 14.369%, which results in a tax rate of 36.249% compared to 41.227% in 2020. Based on this most residents would see a decrease in their City property tax bills frorn 2020 to 2021. As 2021 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 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. Ail 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 Special Revenue Funds the City operates are 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 and new for 2015 is a fund to account for possible grants the City may apply for to help redevelop its commercial district. 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 Enterprise Funds are the Sewer and Water Operating Funds. These funds are 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 and Water Operating Funds 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 301h of each year. Once adopted the preliminary levy is certified to Ramsey County. Over the next few months, the Mayor and Treasurer 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 in November. After the presentation the City Council votes to approve the budget and adopt the final property tax levy. In late 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. 2020 BUDGET SUMMARY BUDGET SUMMARY BY FUND TYPE REVENUE BUDGET 12/1712019 1111712020 2017 2018 2019 2020 11/9120 2021 % ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE GENERAL FUND $476.191 $522,100 $526.635 $519,138 $303,941 $492.365 -5 15% SPECIAL REVENUE FUNDS 253 357 31,059 91,324 399 400 -99.56% DEBT SERVICE FUNDS 76,796 114,899 75,406 81,385 41.479 90.491 11.19% CAPITAL IMPROVEMENT FUNDS 40,389 826,137 74,883 66.250 47.425 66,430 0 27% ENTERPRISE FUNDS 64,181 783,367 231.581 54,330 61,703 65,750 21.02% TOTAL REVENUES $657.810 $2.246.860 $939,564 $812,427 $454,947 $715,456 -11,94% EXPENDITURE BUDGET GENERAL FUND $360.300 $456.326 $426,283 $515,114 $284,792 $492,385 -4 41% SPECIAL REVENUE FUNDS 0 0 5,000 105,000 (2,759) 2,000 -98 10% DEBT SERVICE FUNDS 78,089 140.249 106,833 127,465 136,165 131.265 298% CAPITAL IMPROVEMENT FUNDS 19,965 594.329 58,890 61,024 0 0 562.00% ENTERPRISE FUNDS 47,341 99,434 78,241 89,450 39,552 144,590 61.64% TOTAL EXPENDITURES $505,695 $1.290,338 $675,247 $898,053 $457,750 $770,240 -14.23% FUND BALANCE - JANUARY 1 $559,112 $711,227 $924,332 $1,051,302 $1.024,684 $1,021,831 EXCESS REVENUE OVER EXPENDITURES $152,115 $956,522 $264,317 ($85,626) ($2,803) ($54,784) INFRASTRUCTURE CHANGES $0 ($732,567) ($122,637) $27,000 $0 $41.500 FUND BALANCE - DECEMBER 31 $711,227 $935,182 $1,066,012 $992,675 $1,021,881 $1,008,546 2021 ADOPTED REVENUES BY FUND TYPE ENTERPRISE FUNDS 9% GENERAL FUND t;qal� CAPITAL IMPROVEMENT FUNDS 9% 5 SPECIAL REVENUE FUNDS 0°'0 :RVICE FUNDS 13°o 2021 ADOPTED BUDGETED EXPENDITURES BY FUND TYPE Enterprise Funds 18.8% Capital Improvement Funds 0.0% Debt Service Funds 17.0% 3eneral Fund 63.9% Special Revenu Funds 0.3% GENERAL FUND GENERAL FUND SUMMARY FUND DESCRIPTION: The General Fund accounts 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 2021. The 2021 General Fund budget of $492,385 is a 5.15% decrease over the City's 2020 budget and is a balanced budget. The graphs 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. PROPERTYT 90 49% 2021 REVENUES BY CLASSIFICATION TS RENTAL :S JR SERVICES '0% FITS 1.1 2021 Expenditures By Department Operating Transfers $25,000 Public Works $72,900 Public Safety $149,729 General Government $244,757 GENERAL FUND BUDGET SUMMARY BY ACTIVITY 12/17/2019 11/17/2020 2018 2019 2020 1119120 2021 `Yo REVENUES BY CLASSIFICATION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES $379,124 $370.728 $451,088 $268,062 $445,535 -1,23% LICENSES & PERMITS 46,866 95,310 30.250 26,860 26,800 -11,40% INTERGOVERNMENTAL REVENUES 20,304 16,760 25,300 12 7,000 -72.33% CHARGES FOR SERVICES 52,146 23.248 4,800 2.547 3,450 -28.13% FINES & FORFEITS 1,145 1,769 1,200 590 1.100 -8,33% MISCELLANEOUS 22,515 18.820 6.500 5,870 8,500 30,77% TOTAL REVENUES EXPENDITURES BY DEPARTMENT GENERAL GOVERNMENT 41100 CITY COUNCIL 41900 GENERAL GOVERNMENT 41600 LEGAL SERVICES 41410 ELECTIONS 41500 FINANCIAL ADMINISTRATION 41910 PLANNING & ZONING 41940 HER11-AGE HALL TOTAL GENERAL GOVERNMENT PUBLIC SAFETY 42100 POLICE 42200 FIRE PROTECTION 42300 ANIMAL CONTROL 42401 BUILDING INSPECTIONS TOTAL PUBLIC SAFETY PUBLIC WORKS 43122 ROAD MAINTENANCE 43125 ICE & SNOW REMOVAL 44100 PARK MAINTENANCE TOTAL PUBLIC WORKS OPERATING TRANSFERS 4900 OPERATING TRANSFERS TOTAL OPERATING TRANSFERS TOTAL EXPENDITURES FUND BALANCE - JANUARY 1 EXCESS REVENUE OVER EXPENDITURES FUND BALANCE - DECEMBER 31 $522,100 $526,635 S519.138 $303,941 $492,385 -5.15% $7,620 $8,263 $19,174 $6,483 $18.674 -2,61% 52,644 72,973 60,897 40,504 61,533 1.04% 39,971 24,517 42,000 17.787 48,000 14.29% 5,948 6,716 12,925 6,641 12,800 -0.97% 47.013 44,065 42,360 38,891 42,500 0.33% 113,626 39,582 34,050 17,232 30.300 -11,01% 17,399 39,507 29,050 16,558 30,950 6,54% $284,221 $235,623 $240,456 $144,096 $244,757 1 79% 63,007 54.043 80,835 67,656 85,700 6.02% 17,115 21,680 25,245 21,034 25,650 1.60% 0 0 600 0 600 0.00% 18,359 23,452 40,079 6,406 37,779 -5.74% $98,481 $109,175 $146,759 $95,096 $149.729 2.02% 27,402 2,350 27,900 16,912 29,900 7,17% 26.222 28.885 40,000 3,688 38,000 -5.00% 0 0 5,000 0 5,000 0,00% $53,624 $31,235 $72,900 $20,600 $72,900 0 00% 20,000 50,250 55,000 25,000 25,000-54.55% $20.000 $50,250 $55.000 $25,000 $25,000 -54,55% $456,326 $426,283 $515,114 5284.792 $492,385 441% $329,141 $394,915 5495,267 $65,774 $100,352 $4,024 $394,915 $495,267 $499,290 $495,267 $514.416 $19,149 ($0) $514.416 $514.415 3.03% 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. r;nAi q 1 Maintain stable, constant revenue sources. 2 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 increased to $1,436,565 for taxes payable in 2021. This is an increase of 14.369%. The City's General Fund property tax levy for 2021 will be $445,535. Because of these two factors and the $89,941 debt levy, the 2021 tax rate for the City will be 36.249% compared with 41.289% in 2020 and 40.254% in 2019. All other 2021 City revenue sources were adjusted slightly or remained at the 2020 budget amounts based on actual past or anticipate amounts in 2020. REVENUE LEVELS: 2018 2019 2020 2021 ACTUAL ACTUAL ACTUAL ESTIMATED Tax Rate 39.335% 40.2540/o 41,289% 36.249% Net Taxable Tax Capacity 1,128,008 1,143,753 1,256,075 1,436,565 BUDGET 12117/2019 1111712020 ACCT 2016 2019 2020 1119/2020 2021 % N ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENT TAXES $362,981 $359.190 $440.144 $243,195 5433,305 .155% 31002 DELINQUENT TAXES 9,323 3851 0 24,418 0 000% 31D03 FISCAL DISPARITIES 5.046 7,OB7 10.944 646 12.230 11 75% 31004 PENALTIES & INTEREST 1 774 0 0 (197) 0 000% TOTAL PROPERTY TAXES $379,124 $370,728 $451.OBB $268,062 $445,535 -1.23% LICENSES & PERMITS 32100 GENERAL BUSINESS LICENSES 1.200 2,700 2.200 2.600 2.000 -909% 3210l ON -SALE LIQUOR LICENSES 1.200 5400 5.400 5,800 5.400 000% 32102 OFF SALE LIQUOR LICENSE 0 0 0 0 0 000% 32103 NON -INTOXICATING LIQUOR LICENSES 0 0 0 0 0 0 CO% 32104 OTHER PERMITS 1.843 1.430 1,000 1.465 1,200 20O(% 32106 TOBACCO LICENSE 0 500 500 200 0 -10000% 32107 CHARITABLE GAMBLING LICENSE 0 500 500 500 500 0.00'k 32201 CONTRACTOR LICENSE 2.000 1.565 1200 1,551 1,2DD 0DD% 32210 BUILDING PERMITS 27,716 62.745 10,D00 8,473 8,000 -20.00% 32211 PLUMBING PERMITS 3.270 7,50E 1.500 1.540 1,000 -33.33% 32212 GASIHEATING PERMITS 2,570 6,813 2,OD0 : 395 1.50D -25.00% 32213 ELECTRICAL PERMITS 377 524 1,100 356 800 -27.27% 32215 NPDES PERMIT 700 2,200 10D 300 100 0.00% 32218 FIRE MARSHALL INSPECTION FEE 2.400 5 2.500 0 2,500 000% 32219 SEPTIC INSPECTION FEE 2,850 2.730 2.000 360 2,000 0.00% 32235 SEWER CONTRACTOR LICENSE 0 150 100 0 50 -5000% 32239 RENTAL LICENSING 500 0 0 1,000 400 0,OD°k 32240 ANIMAL CONTROL LICENSE 24D 240 150 320 150 000% TOTAL LICENSES & PERMITS $46,866 $95,310 $30.250 526.860 $26,BW -11 40% INTERGOVERNMENTAL REVENUES 33401 LGA 6.002 D 0 12 0 000% 33430 COUNTY GRANTS & AIDS 15 13 15,000 0 0 -10000% 33601 SCORE GRANT 2,024 9,173 0 0 1.000 000% 33603 POLICE STATE AID 5.111 0 4.300 0 0 -100.00% 33602 CABLE TV FRANCHISE FEES 7.152 7.574 6.000 0 6000 0.00% 33604 OTHER GOVERNMENT AIDS AND GRANTS 0 0 0 0 0 0 00 % TOTAL INTERGOV REVENUES $20,304 $16,760 525.300 $12 $7.O00 -7233% CHARGES FOR SERVICES 3222D SURCHARGEISACRETAINAGE (190) 141 100 313 :/J -5000% 32230 ADMINISTRATIVE CHARGES 3,686 0 0 0 0 0001/a 34105 PLANNING CHARGES 11.309 1,150 500 0 200 -60 DD% 34110 PLAN CHECK FEES 9,908 17,614 4.000 1.B24 3.000 -2500% FALSE ALARMS 0 0 0 0 0 000% 34121 SPECIAL ASSESSMENT SEARCHES 0 0 0 0 0 000% 34122 ENGINEERING CHARGES 21,769 1,418 0 0 0 000% 34123 ZONING CHARGES 5,452 700 0 75 0 OOOR. 34126 CHARGES FOR LEGAL FEES 0 1.680 0 0 0 000% 34132 INVESTMENT ADMINISTRATIVE CHARGE 212 545 200 335 200 000% 34135 CONTRACTUAL SERVICES 0 0 0 0 D 0 DO% TOTAL CHARGES FOR SERVICES $52,146 $23,24B $4.000 $2,547 $3.450 -28.13% FINES & FORFEITS 35100 TRAFFIC &OTHER FINES 1,145 1.769 1.200 590 1,100 -8.33% TOTAL FINES & FORFEITS $1,145 $1,769 $1,200 $590 $1,10D -833% MISCELLANEOUS REVENUES 36210 INTEREST EARNINGS 2.504 11.698 2.500 4.685 5,000 10000% 36231 CHARITABLE GAMBLING CONTRIBUTIONS 0 0 0 0 0 000% 36241 INSURANCE POLICY DIVIDENDS 135 0 D 0 0 000% 36200 MISCELLANEOUS 16.624 154 1,DDO 88 500 -50 00 % 36400 FACILITY RENTAL 3.252 5.968 3,0D0 1,097 3,000 0001/6 39200 TRANSFERS IN 0 D 0 0 0 ODD% TOTAL MISCELLANEOUS $22,515 $18.820 $6,500 55.870 $8,500 3077% TOTAL GENERAL FUND REVENUES 5522.100 $526.635 $519,138 $303,941 $492,385 -5.159A 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. Budget changes from 2020 to 2021 include decreasing administrative expenditures $500 based on past expenditures and budgeting $100 for possible conference/training costs and $10,000 for contingencies. BUDGET CITY COUNCIL DEPARTMENT 41100 12/17/2019 11117/2020 ACCT. 2018 2019 2020 11/9/20 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $6,900 $7,681 $7 500 $4,800 $7,500 0.00% 130 FICA CONTRIBUTIONS 528 514 574 513 574 0 00`/0 TOTAL PERSONNEL SERVICES $7,428 $8,195 $8,074 $5.313 $8.074 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 00% 308 ADMINISTRATION 192 0 1,000 0 500 -50,00% 310 CONFERENCE REGISTRATION FEES 0 68 100 20 100 0 00%. 333 MEETING EXPENSES 0 0 0 0 0 0.00% 364 OTHER INSURANCE 0 0 0 0 0 0 00% 449 COUNCIL CONTINGENCY 0 0 10.000 1,150 10,000 000% TOTAL OTHER SERVICES & CHARGES $192 $68 $11,100 $1,170 $10,600 -4.50% TOTAL CITY COUNCIL $7,620 $8,263 $19,174 $6.483 $18.674 -2.61% 13 Clerk/General Government General Fund �� iTilx►Yy:Z1;iiL�l►1 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. Provide support for agencies, which provide service needs within the City. Most line items adjusted based on current and past expenditure levels Personnel Services increased to reflect wage increase. 14 BUDGET: CLERK/GENERAL GOVERNMENT DEPARTMENT 41900 ACCT. 2018 # ACCOUNT DESCRIPTION ACTUAL PERSONNEL SERVICES 100 WAGES & SALARIES $24,871 TEMPORARY EMPLOYEES 0 130 FICA CONTRIBUTIONS 1 491 131 PERA CONTRIBUTIONS 0 135 HEALTH INSURANCE 0 150 WORKER'S COMPENSATION 225 12/17/2019 1111712020 2019 2020 1119/20 2021 1/0 ACTUAL ADOPTED ACTUAL ADOPTED CHANGE $26,034 525,617 $20,306 $27,620 7.82% 2,203 0 0 0 0.00% 2.805 1,960 1,257 2,113 7.82% 0 0 0 0 0.00% 0 0 0 0 0.00% 128 520 411 500 -3.85% TOTAL PERSONNEL SERVICES $26,587 $31.170 $28,097 $21,974 $30.233 7,60% SUPPLIES 200 OFFICE SUPPLIES 1,906 1,662 2,000 411 2,000 0.00% 212 POSTAGE 1.319 1,321 1,450 717 1,450 0.00% 250 SALES TAX 0 0 0 0 0 0.00% TOTAL SUPPLIES $3.225 $2.983 $3.450 $1.128 $3,450 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 120 3,000 0 2,000 -33.33% 305 ADMINISTRATION 631 329 700 18 500 -28.57% 308 PROFESSIONAL SERVICES 0 0 0 0 0 0.00% 309 MISCELLANEOUS (1071 6,519 100 375 200 100.00% 310 CONFERENCE REGISTRATION FEES 0 485 500 0 500 0.00% 320 INTERNET CONNECTION 0 0 0 0 0 0.00% 322 WEB SITE 696 1.096 1,200 1,163 1,200 0.00% 331 MILEAGE 73 0 150 0 150 0 0011/0 332 RECORDING SECRETARY 0 0 0 806 0 0.00% 334 COMPUTER SERVICES 4,216 4,213 5,500 4.359 6,000 9.09% 350 PRINTING - OTHER 0 0 0 0 0 0.00% 351 LEGAL NOTICES 1.040 479 1,000 105 800 -20 00% 352 NEWSLETTER/PUBLIC RELATIONS 2,430 1.647 2,500 834 2,500 0.00% 361 GENERAL LIABILITY INSURANCE 1,030 1,091 3.500 1,616 3.000 -14.29% 363 VEHICLE INSURANCE 0 150 100 94 100 0.00% 365 PUBLIC OFFICIALS LIABILITY INSURANCE 37 J75) 150 0 150 0.00% 384 RECYCLING COLLECTION 6,067 16,304 9,500 6,753 9.500 0.00% 434 VLAWMO 0 0 0 0 0 0.00% 435 LMC 232 614 1,000 1,095 800 -20.00% 436 RCLLG 0 350 400 184 400 0.00% 440 DUES & SUBSCRIPTIONS 0 0 50 0 50 0.00% 450 CHARITABLE GAMBLING DISTRIBUTIONS 4,487 5 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $22,832 $33,327 $29,350 $17,402 527,850 -5.11% CAPITAL OUTLAY 570 FURNITURE & OFFICE EQUIPMENT 0 5,493 0 0 0 0.00% 580 OTHER EQUIPMENVIMPROVEMENTS 0 0 0 0 0 0,00% TOTAL CAPITAL OUTLAY $0 $5.493 $0 $0 $0 0.00% TOTAL CLERK/GENERAL GOVERNMENT $52,644 $72,973 $60,897 540,504 $61,533 1.04% 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 2021 budget is based on contract cost of current legal counsel and anticipated use or need of legal counsel in 2021. BUDGET: ACCT. # LEGAL SERVICES DEPARTMENT 41600 ACCOUNT DESCRIPTION 2018 ACTUAL 2019 ACTUAL 12/17/2019 2020 ADOPTED 1119/20 ACTUAL 11/17/2020 2021 ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES s0 $0 $0 $0 $0 0.00% 303 PROSECUTION 1,294 487 4,000 85 3.000 -25.00% 304 LEGAL SERVICES 23.860 23,960 30,000 17,702 40,000 33.33% 305 LEGAL SERVICES - LAND ISSUES 12,527 70 8,000 0 5,000 -37.50% 309 MISCELLANEOUS 0 0 0 0 0 0.00% 317 LEGAL - ANNEXATION 2,290 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $39,971 $24,517 $42,000 $17,787 $48,000 14,29% TOTAL LEGAL SERVICES $39,971 $24,517 $42.000 S17,787 S48,000 14 29% 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. 1 Conduct fair and open elections. BUDGET COMMENTARY: In 2013 the City began contracting with Ramsey County for election administrative services. The cost to administer the elections will be spread over a two year period, which results in the City having flat election costs even though there are years with (even years) and without (odd years) general elections. BUDGET. ELECTIONS DEPARTMENT 41410 12/17/2019 11/1712020 ACCT. 2018 2019 2020 11/9120 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $0 $0 $0 $0 $0 0 00% 105 TEMPORARY EMPLOYEES 0 0 0 0 0 0.00% 130 FICA CONTRIBUTIONS 0 0 0 0 0 0 00% 160 WORKER'S COMP 0 0 0 0 0 0 00% TOTAL PERSONNEL SERVICES SO $0 $0 $0 $0 0 00% SUPPLIES 210 OPERATING SUPPLIES - OTHER 234 75 250 0 150 A0 00% 212 POSTAGE 0 0 0 0 0 0 00% 250 SALES TAX 0 0 0 0 0 0 00% TOTAL SUPPLIES $234 $75 S250 $0 $150 -40 00% OTHER SERVICES & CHARGES 308 ADMINISTRATION 14 0 0 0 0 0.00% 307 PROFESSIONAL SERVICES 4.679 4,165 10,000 4,165 10,000 000% 309 MISCELLANEOUS 0 0 0 0 0 0.00% 331 MILEAGE 0 0 0 0 0 0.00% 350 OTHER PRINTING 0 0 0 0 0 0.00% 351 LEGAL NOTICES 136 59 175 59 150 -14.29% Ballot Machine 0 0 0 0 0 0 00% 400 REPAIR/MAINTENANCE EQUIPMENT 885 2,417 2,500 2,417 2,500 0.00% TOTAL OTHER SERVICES & CHARGES $5.714 $6.641 $12,675 $6,641 $12.650 -0.20% TOTAL ELECTIONS $5,948 $6,716 $12,925 $6.641 $12,800 -097°% 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 amounts budgeted in 2021 reflect past expenditure levels. In 2020 the City requested proposals for audit services and the 2021 budget reflects the new audit costs. BUDGET FINANCIAL ADMINISTRATION DEPARTMENT 41500 12/17/2019 11117/2020 ACCT 2018 2019 2020 11/9/20 2021 %n # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES SUPPLIES 200 OFFICE SUPPLIES $0 $0 s0 $0 $0 0.00% 250 SALES TAX 0 0 0 0 0 0 00% TOTAL SUPPLIES $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 308 ADMINISTRATION 0 0 0 0 0 0.00% 301 AUDITING SERVICES 8,300 10,800 12,360 12,865 10,000 -19 09% 329 FINANCIAL SERVICES 36,912 31,710 28,000 24,316 30.000 7 14% 334 COMPUTER SERVICES 1.801 1,555 2,000 1,710 2.500 25,00% 309 MISCELLANEOUS EXPENSE 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $47,013 $44,065 $42,360 $38.891 $42,500 0.33% TOTAL FINANCIAL ADMINISTRATION $47.013 $44,065 $42,360 $38.891 $42,500 0.33% W 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: Administration and Engineering Services increased based on past expenditure history. In 2020, the City completed its work on the State required comprehensive plan update, which began in 2017. For these reasons, the budget is decreasing $3,750. BUDGET: PLANNING & ZONING DEPARTMENT 41910 12/17/2019 11/17/2020 ACCT 2018 2019 2020 1119120 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES $776 $0 $0 $0 $0 0 00% 308 ADMINISTRATION 9.151 0 3,500 0 3,500 0.00% 302 ENGINEERING SERVICES 89.444 28,416 22,000 12,017 20.000 -9.09% 309 MISCELLANEOUS 0 0 50 0 50 0.00% 315 ZONING ADMINISTRATION 403 2,443 500 261 750 50.00% 325 NPDES TRAINING 0 0 0 0 0 0.00% 326 NPDES EDUCATION 0 0 0 0 0 0.00% 327 MS4 REPORTING 732 5,271 8,000 3,024 6.000 -25.00% 332 RECORDING SECRETARY 0 0 0 0 0 0.00% 348 COMP PLAN UPDATE 13,120 3,452 0 1.930 0 0.00% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0 00% TOTAL OTHER SERVICES & CHARGES $113,626 $39.582 $34.050 S17,232 $30.300 •11.01% CAPITAL OUTLAY 570 FURNITURE & OFFICE EQUIPMENT 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 s0 0 00% TOTAL PLANNING & ZONING $113,626 $39.582 $34,050 $17.232 $30,300 -11 0"1% 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, mayor's office and a sub -station for the Ramsey County Sheriff Department. BUDGET COMMENTARY: Line items adjusted to reflect past expenditure activity. Contracted services increased for an outside contractor performing periodic through cleanings of the building. HERITAGE HALL DEPARTMENT 41940 ACCT 2018 # ACCOUNT DESCRIPTION ACTUAL SUPPLIES 205 CLEANING SUPPLIES 210 OPERATING SUPPLIES - OTHER 230 BUILDING MATERIALS 250 SALES TAX TOTAL SUPPLIES OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 309 CONTRACT SERVICES 321 TELEPHONE 362 PROPERTY INSURANCE 381 ELECTRICITY 383 GAS 385 WATER/SEWER UTILITIES 400 REPAIR/MAINTENANCE - OTHER 401 REPAIRWAINTENANCE - BUILDINGS TOTAL OTHER SERVICES & CHARGES CAPITAL OUTLAY 520 BUILDING IMPROVEMENTS 580 OTHER EQUIPMENT/IMPROVEMENTS TOTAL CAPITAL OUTLAY TOTAL HERITAGE HALL 12/17/2019 11/17/2020 2019 2020 11/9/20 2021 % ACTUAL ADOPTED ACTUAL ADOPTED CHANGE $0 $0 $0 $0 $0 0.00% 171 67 400 138 400 0.00% 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% $171 $67 $400 $138 $400 0.00% 759 4,762 4,000 273 4,000 0.00% 4,809 6,421 6.000 4.687 8,000 33.33% 1,648 1,470 2,200 0 2,000 -9,09% 875 789 1,500 1,059 1,500 0.00% 4.731 4,267 5,000 3,224 5.000 0.00% 957 1,177 1,500 650 1,700 13.33% 465 847 650 712 850 30.77% 1,766 335 2,800 345 2,500 -10 71% 1,218 19,372 5.000 5,470 5,000 0.00% S17.228 $39.440 $28.650 $16.420 $30,550 6.63% 0 0 0 0 0 0, 00% 0 0 0 0 0 0 00% $0 s0 $0 $0 $0 0 00% $17,399 $39,507 $29,050 $16,558 $30,950 6.54% 20 Police General Fund ACTIVITY DESCRIPTION: In 2018, the City of Gem Lake began contracting with the City of White Bear Lake's Police 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: 1 Provide effective law enforcement service to the City. BUDGET COMMENTARY: The 2021 budget is based on the contracted budget amount provided by the City of White Bear Lake's Police Department. Prior expenditures are from the Ramsey County Sheriff's Department, who the City contracted with through 2017. BUDGET POLICE DEPARTMENT 42100 12/17/2019 1111712020 ACCT. 2018 2019 2020 1119/20 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 305 REGULAR LAW ENFORCEMENT S57,294 $63,234 $80.535 $67.109 585,400 6.04% 306 SPECIAL LAW ENFORCEMENT 4.063 0 0 0 0 0 00% 307 DISPATCH COSTS 1.520 809 0 547 0 0.00% 308 ADMINISTRATION 130 0 300 0 300 0 00% 309 MISCELLANEOUS 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $63.007 $64,043 $80,835 S67,656 $85,700 6.02% TOTAL POLICE $63,007 $64,043 $80,835 $67,656 $85,700 6.02% 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: 1. Promote public education and information about fire prevention and safety 2. 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 2021 budget less an adjustment for 2019 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. FIRE DEPARTMENT 42200 12/17/2019 11/17/2020 ACCT 2018 2019 2020 11/9/20 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 308 ADMINISTRATION $0 $0 $0 $0 $0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0.00% 311 FIRE SERVICE 13,017 15,700 18.935 15,779 $19,200 1.40% 312 FIRE MARSHALL SERVICES 4,098 5.980 6,310 5,255 $6,450 2.22% TOTAL OTHER SERVICES & CHARGES $17,115 $21,680 $25.245 $21,034 $25,650 1.60% TOTAL FIRE $17.115 $21.680 $25,245 $21,034 $25.650 1.60% 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 2021 budget was based on past expenditures. BUDGET AN] MAL CONTROL DEPARTMENT 42300 12117/2019 11/17/2020 ACCT 2018 2019 2020 1119120 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES $0 $0 $0 s0 s0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0.00% 323 ANIMAL REMOVAL 0 0 400 0 400 0.00% 324 ANIMAL ENFORCEMENT 0 0 200 0 200 0.00% TOTAL OTHER SERVICES & CHARGES $0 $0 S600 $0 $600 0.00% TOTAL ANIMAL CONTROL s0 $0 S600 $0 S600 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 comply 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: The 2021 budget includes personnel costs related to hiring a part-time inspector to enforce city codes related to building and development activities. This position was included in the 2020 budget, but was not hired. BUDGET BUILDING INSPECTIONS DEPARTMENT 42401 12/17/2019 11/17/2020 ACCT. 2018 2019 2020 1119/20 2021 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $0 $0 $12,500 SO $12,500 0.00% TEMPORARY EMPLOYEES 0 0 0 0 0 0.00% 130 FICA CONTRIBUTIONS 0 0 956 0 956 0 00% 131 PERA CONTRIBUTIONS 0 0 938 0 938 0.00% 135 HEALTH INSURANCE 0 0 0 0 0 0,00% 150 WORKER'S COMPENSATION 0 0 185 0 185 0000% TOTAL PERSONNEL SERVICES $0 $0 $14,579 $0 $14,579 0000, OTHER SERVICES & CHARGES 313 BUILDING INSPECTIONS 16,448 21.490 18,000 6,064 16,000 -11.11% 309 MISCELLANEOUS 0 0 0 0 0 0.000 316 BUILDING SECRETARY SERVICES 1,911 1,752 2.500 272 2,200 -12.00% 334 COMPUTER SERVICES 0 210 0 70 0 0 00% 328 CODE ENFORCEMENT 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $18,359 $23,452 $20.500 $6,406 $18.200 -11.22% CAPITAL OUTLAY 570 FURNITURE & EQUIPMENT 0 0 5,000 0 5,000 0 00% TOTAL CAPITAL OUTLAY $0 $0 $5.000 $0 $5,000 0.00% TOTAL BUILDING INSPECTIONS $18,359 $23,452 $40,079 $6,406 $37,779 -5 74% 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 or outside contractors by contract. 1. Routine maintenance to assure long life of each street BUDGET COMMENTARY: Most line items adjusted based on past expenditures. In 2019, the City adopted a boulevard tree trimming policy, in which the City will trim any trees or bushes that interfere with pedestrian traffic and vision of vehicle drivers. Based on past expenditures, $8,000 is estimated for tree trimming. BUDGET ROAD MAINTENANCE DEPARTMENT 43122 1211712019 11 / 1712020 ACCT 2018 2019 2020 11/9120 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 211 CHEMICALS $0 s0 $0 $0 $0 0 00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0.00% 224 GRAVEUSTREET MATERIAL 591 0 0 0 0 0 00°/, 225 SALTISAND 0 0 0 0 0 0 00% 226 SIGNS, SIGN REPAIR MATERIALS 8,191 1,270 500 0 5U0 0001/1 250 SALES TAX 0 0 0 0 0 0 00% TOTAL SUPPLIES $8,782 $1,270 $500 $0 $500 0.00%, OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0.DO% 302 ENGINEERING FEES 633 298 6,000 13,762 4,000 -33.33% 308 ADMINISTRATION 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0.00% 327 NPDES - STORMWATER 801 0 0 0 0 0 00% 351 LEGAL NOTICES 0 () 0 0 0 0 00% 382 ELECTRICITY - STREET LIGHTS 1,069 612 1,300 560 1,300 0 00% 385 ROW MAINTENANCE 0 40 1.000 0 1,000 0.00% 405 ROAD MAINTENANCEIREPAIR 0 130 4.000 2 590 15,000 275.00% 406 BLVD. TREE TRIMMING 16,078 0 15,000 0 8,000 -46.67% 433 DUES AND SUBSCRIPTIONS 39 0 100 0 100 0 00% TOTAL OTHER SERVICES & CHARGES $18.620 $1,080 S27,400 S16.912 $29,400 7 30% CAPITAL OUTLAY 'A0 HEAVY MACHINERY/EQUIPMENT U 0 0 0 0 0,00% TOTAL CAPITAL OUTLAY SO SO $0 $0 SO 0.00%, TOTAL ROAD MAINTENANCE $27,4U2 $2,350 $27,900 $16,912 $29,900 7 17% I 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. 1 Remove snow as quickly as possible to provide all residents with safe access BUDGET COMMENTARY. The budget for ice and snow control is based on past expenditures. BUDGET: ICE & SNOW REMOVAL DEPARTMENT 43125 12/17/2019 11/1712020 ACCT. 2018 2019 2020 1119120 2021 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 225 SALT SAND $8,628 $14,211 $17.000 $1,145 $17,000 0,00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 00% 250 SALES TAX 0 0 0 0 0 0.00% TOTAL SUPPLIES $8,628 $14.211 $17,000 $1,145 $17,000 0,00% OTHER SERVICES & CHARGES 309 MISCELLANEOUS 0 0 0 0 0 0.00% 400 REPAIR/MAINTENANCE OTHER 2,555 0 3.000 0 2,500 -16.67% 404 REPAIR/MAINTENANCE - CONTRACTUAL 15,039 14,674 20,000 2,543 18,500 -7.50% TOTAL OTHER SERVICES & CHARGES S17,594 $14,674 $23,000 $2,543 S21.000 -8.70% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $o $0 0.00% TOTAL ICE & SNOW REMOVAL $26,222 $28,885 $40.000 $3,688 $38,000 -5 00% KEV 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: In 2019, a trail was constructed in the Villas of Gem Lake housing development and donated to the City. For 2021, the City is budgeting $5,000 to pay for mowing, plowing and maintenance of the trail and area around the trail. The City does have plans to construct a sidewalk or pathway along County Road E to provide safer pedestrian traffic. BUDGET: PARK MAINTENANCE DEPARTMENT 4410 12/17/2019 11/17/2020 ACCT 2018 2019 2020 1119/20 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 211 CHEMICALS $0 $0 $0 $0 $0 0,00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0.00% LANDSCAPING MATERIALS 0 0 0 0 0 0.00% 226 SIGNS, SIGN REPAIR MATERIALS 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 s0 $0 $0 so 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0,00% 404 PARK MAINTENANCE - CONTRACTUAL 0 0 5,000 0 5.000 0.00% 400 REPAIR/MAINTENANCE - OTHER 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0.00% TOTAL OTHER SERVICES E CHARGES $0 s0 $5,000 s0 $5,000 0.00% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 00% 5B0 OTHER EQUIPMENT/IMPROVEMENTS 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 s0 $0 $0 $0 0.00% TOTAL PARK MAINTENANCE $0 $0 $5,000 $0 $5.000 0.00% 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 In the past, 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. The transfer in 2018 and planned for 2019 was for the City's share of future improvement projects. This transfer is being increased to $25,000 for 2020 and a $30,000 transfer to the Park and Playground Fund for the future construction of a sidewalk alone County Road E. In 2021 only the $25,000 for future improvement projects is being budgeted. BUDGET OPERATING TRANSFERS DEPARTMENT 4900 ACCT # ACCOUNT DESCRIPTION 2018 ACTUAL 2019 ACTUAL 12/17/2019 2020 ADOPTED 11/9120 ACTUAL 11/17/2020 2021 ADOPTED % CHANGE 720 TRANSFERS OUT 2007 Capital Improvement Bonds $0 s0 $0 $0 s0 0,00% Improvement Fund - 401 Road Improvements 0 0 0 0 0 0.00% EAB Treatment/Prevention 0 0 0 0 0 0.00% Building Improvements/Replacement 0 0 0 0 0 0.00% Future Improvements 20,000 20,000 25.000 25,000 25,000 0.00% Sidewalk/Path along County Road E 0 30.250 30,000 0 0 -100.00% Annexation Reserve Account 0 0 0 0 0 0.00% City Hall Construction Fund - 402 0 0 0 0 0 0.00% Sewer Fund - 601 0 0 0 0 0 0 00% TOTAL OPERATING TRANSFERS 20,000 50,250 55,000 25,000 25,000 -54.55% 28 SPECIAL REVENUE FUNDS 29 PARK & PLAYGROUND FUND SPECIAL REVENUE FUND ACTIVITY DESCRIPTION: 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 GOALS: Acquire and develop current and future parkland property. 2. Provide recreational facilities to all residents, including trails and walkways. BUDGET COMMENTARY: Revenue source is park dedication fees paid on new construction and/or developments, interest earnings and any operating transfers. The transfer was from the General Fund and Improvement Funds in the past, for the possible construction of a sidewalk along County Road E. The only expenditure in the past was for engineering is for the construction of the sidewalk along County Road E. 30 BUDGET: 201 PARK AND PLAYGROUND FUND f REVENUE BUDGET 12/17/2019 11/17/2020 ACCT, 2018 2019 2020 11/9/20 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED I CHANGE MISCELLANEOUS 33604 GRANTS $0 $0 $0 $0 s0 0.00% 34785 PARK DEDICATION FEES 0 0 0 0 0 0.00%I 36210 INTEREST INCOME 357 809 300 399 400 33.33% 36200 MISCELLANEOUS 0 0 0 0 0 0.00% 39200 'TRANSFERS IN 0 30,250 91,024 0 0 -100,00%. TOTAL MISCELLANEOUS $357 $31,059 $91,324 $399 $400 -99.56%! TOTAL REVENUES $357 $31.059 $91,324 $399, $400 -99,56%I 'EXPENDITURE BUDGET SUPPLIES 210 OPERATING SUPPLIES - OTHER 235 LANDSCAPING MATERIALS 226 SIGNS & SIGN MATERIALS 250 SALES TAX TOTAL SUPPLIES I I (OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES f 302 'ENGINEERING FEES 304 LEGAL FEES i 300 PROFESSIONAL SERVICES 400 REPAIR/MAINTENANCE - OTHER 540 EQUIPMENT TOTAL OTHER SERVICES & CHARGES CAPITAL OUTLAY 510 LAND 580 OTHER IMPROVEMENTS 720 TRANSFERS OUT TOTAL CAPITAL OUTLAY TOTAL EXPENDITURES FUND BALANCE - JANUARY 1 (EXCESS REVENUE OVER EXPENDITURES FUND BALANCE - DECEMBER 31 $0 $0 $0 $0 $0 0.00%1 0 0 0 0 0 0.00%I 0 0 0 0 0 0.00%' 0 0 0 0 0 0.00%I $0 $0 $0 $0 $0 0.00%, 0 5,000 5,000 (3,200) 0 -100.00%I1 8,504 12,720 5,000 50 0 -100.00% I 0 0 0 0 0 0.00% 0 0 0 0 0 0.00%1 0 0 0 0 0 0.00% 0 0 0 0 0 0,00%11 $8,504 $17,720 $10,000 ($3,150) $0 -100.00* i 0 0 0 0 0 0.00%I 0 0 100,000 441 2,000 -98.00% 0 0 0 0 0 0.00% $0 $0 $100,000 $441 $2,000 -98.00% $8,504 $17,720 $110,000 ($2,709) $2,000 -98.18% $40,125 $31.978 $45,317 $31,978 $35,086 ($8,147) $13,339 ($18,676) $3.108 ($1,600) $31,978 $45,317 $26,641 $35,086 $33,486 25.69% FUTURE IMPACTS: The future budget impacts will depend on the type and scope of park and playground improvements. 31 AL 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. GOALS: Retire all debt in a timely basis as scheduled. MEASURABLE WORKLOAD DATA 2018 2019 2020 2021 ACTUAL ACTUAL ACTUAL ESTIMATED Bond Rating Non -Rated Non -Rated Non -Rated Non -Rated Dec. 31 Debt Outstanding (In thousands) $1,315 $1,250 $1,160 $1,065 Net Debt Per Capita $2,941 $2,796 $2.555 $2,281 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 2015 G O. Refunding Bonds. The City's current legal debt limit and debt margin is as follows. Legal Debt Limit (3% of Estimated Market Value) $4,104,957 Less: Outstanding Debt Subject to Limit (530,000) Legal Debt Margin as of January 1, 2021 $3,574,957 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 and was refunded with the 2015 G. O. Refunding Bond. In 2018, the 34 City issued improvement bonds with a principal of $660,000.00. In 2013, the City paid off the outstanding principal balance of its 2004A and 2006A improvement bonds, which are included in this document as the Funds still had activity to close out its balance in 2018. BUDGET DEBT SERVICE FUNDS SUMMARY REVENUE BUDGET ACCT. # ACCOUNT DESCRIPTION 2018 ACTUAL 2019 ACTUAL I 12/17/2019 I 2020 ADOPTED 1111712020 11I9l20 2021 ACTUAL ADOPTED _ _ % CHANGE PROPERTY TAXES 31001 CURRENT TAXES $82,965 $71,415 $78,600 $35,947 $87,436 11.24% 31002 DELINQUENT TAXES 2,490 880 0 4,767 j 0 0.00% 31003 (FISCAL DISPARITY TAX 1.154 1,407 2,235 1331 2,505 12.08% 31004 (PENALTIES & INTEREST (31) 0 0 (36)1 0 0.00% (TOTAL PROPERTY TAXES $86,578 $73,702 $80.835 $40,811 $89,941 11.26% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 13,120 0 0 0 0 0.00% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 0.00%I 36103 PENALTIES & INTEREST 0 0 0 0 0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0.00% TOTAL FINES & FORFEITS MISCELLANEOUS 36210 INTEREST EARNINGS 39000 MISCELLANEOUS 39200 BOND PROCEEDS 39300 TRANSFERS IN TOTAL MISCELLANEOUS TOTAL REVENUES EXPENDITURE BUDGET CAPITAL OUTLAY 601 ,BOND PRINCIPAL 602 BOND INTEREST 603 IFISCAL AGENT FEES 701 MISCELLANEOUS 720 TRANSFERS OUT (TOTAL CAPITAL OUTLAY TOTAL EXPENDITURES (FUND BALANCE - JANUARY 1 'EXCESS REVENUE OVER EXPENDITURE FUND BALANCE - DECEMBER 31 $13.120 $0 $0 $0 $0 0.00%I 948 1,704 550 668 550 _ I 0.00% 0 0 0 0 0 _ 0.00% 14,253 0 0 0 0 0.00% 0 0 0 0 0 0.00%I $15,201 $1,704 $550 $668 $550 0.00%1 $114,899 $75.406 $81.385 $41,479 $90,491 11.19% 60.000 65,000 90,000 90,000 95.000 5.56% 15,755 38,883 36,165 36.165 34,065 -5.81% 3,470 2.950 1.300 10,000 2,200 69.23% 0 0 0 0 0 0.00% 61,024 0 0 0 0 0.00% $140,249 $106,833 $127,465 $136,165 $131.2651 2.98% $140,249 $106,833 $127,465 $136,165 $131,265 +( 2,98% $113,049 $87,699 $56,272 $87,699 ($6,987) ($25,350) ($31,427) ($46,080) ($94,686) ($40,774) $87,699 $56,272 $10,192 ($6,987) ($47,761) -568.61% 35 2004 IMPROVEMENT BOND FUND DEPARTMENT: 2004 Improvement Bond SUPERVISOR: Finance Officer FUND #: 302 ACTIVITY #: 4700 �l�I��ZiT�Yy7llirL�]►1 The 2004 Improvement Bond was issued to pay for the construction costs of the Scheuneman Road sanitary sewer and roadway reconstruction project. GOALS: None as this debt was retired in 2013. MEASURABLE WORKLOAD DATA 2018 ACTUAL Bond Principal Retired $0 Bond Interest Paid $0 Special Assessments Collected $13,120 2019 2020 ACTUAL ACTUAL $0 $0 $0 $0 $0 $0 DEBT PAYMENT SCHEDULE: JAN. 1 DEBT YEAR DUE OUTSTANDING PRINCIPAL DUE Debt was retired in 2013 2021 ESTIMATE $0 $0 $0 INTEREST DUE BUDGET COMMENTARY: This Fund is being shown for historical purposes only for the activity in 2018. This fund received its revenue from special assessments collected from benefited properties and an operating transfer to remove the remaining fund balance. 36 BUDGET: 302 2004 IMPROVEMENT BONDS REVENUE BUDGET 12/17/2019 11/17/2020 ACCT. 2018 2019 2020 11/9/20 2021 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE (SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS - CURRENT $13,120 $0 $0 $0 $0 0.00% 36102 SPECIAL ASSESSMENTS - DELINQUENT 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 0 0 0 0 0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0.00%, TOTAL FINES & FORFEITS $13,120 $0 $0 $0 $0 0.00% MISCELLANEOUS 36210 INTEREST EARNINGS 1 0 0 0 0 0.00% i 39100 BOND PROCEEDS 0 0 0 0 0 0,00% 39200 TRANSFERS IN 0 0 0 0 0 0.00%! TOTAL MISCELLANEOUS TOTAL REVENUES EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL 610 (BOND INTEREST 620 `FISCAL AGENT FEES 720 !TRANSFERS OUT TOTAL CAPITAL OUTLAY TOTAL EXPENDITURES -FUND BALANCE - JANUARY 1 1EXCESS REVENUE OVER EXPENDITURES FUND BALANCE - DECEMBER 31 $1 $0 $0 SO $0 0.00% $13,121 $0 $0 $0 SO 0.00% $0 $0 $0 $0 $0 0.00% 0 0 0 0 0 0.00% 0 0 0 0 0 0.00% 11,725 0 0 0 0 j 0.00%1 $11,725 $0 $0 $0 $01 0.00% $11,725 $0 $0 $0 $OI 0.00% ($1,396) $0 $0 $0 I $0 j $1,396 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 37 2015 REFUNDING CAPITAL_ IMPROVEMENT PLAN BOND FUND DEPARTMENT: 2015 Refunding Capital Improvement Plan Bond SUPERVISOR: Finance Officer FUND #: 304 ACTIVITY #: 4700 ACTIVITY DESCRIPTION: The 2007 Capital Improvement Plan Bonds were issued to finance the construction of Heritage Hall and refunded in 2015 GOALS: 1. Pay debt payments on a timely basis as scheduled. MEASURABLE WORKLOAD DATA 2018 2019 2020 ACTUAL ACTUAL ACTUAL Bond Principal Retired $60,000 $65,000 $60,000 Bond Interest Paid $15,755 $14,828 $13,765 Property Tax Levy Collected $86,578 $79,996 $78,086 DEBT PAYMENT SCHEDULE: VPAP ni iP 2021 2022 2023 2024 2025 2026 2027 2028 JAN. 1 DEBT OUTSTANDING $530,000.00 $470,000.00 $405,000.00 $340,000.00 $275,000.00 $210.000.00 $140,000.00 $70,000.00 PRINCIPAL DUE $60,000.00 $65,000.00 $65,000.00 $65,000.00 $65,000.00 $70,000.00 $70,000.00 $70,000.00 38 2021 ESTIMATE $60,000 $12,640 INTEREST DUE $12,640.00 $11,358.75 $9,928.75 $8,401.25 $6,776.25 $4,987.50 $3,045.00 $1,015.00 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. The 2007 Capital Improvement Plan Bonds were advance refunded by the 2015 General Obligation Refunding Bonds for principal beginning in 2017. BUDGET: 304 2015 REFUNDING BOND (FORMERLY 2007 CAPITAL IMPROVEMENT PLAN BONDS) REVENUE BUDGET 12/17/2019 11/17/2020 _ ACCT. 2018 2019 2020 11/9120 2021 % # iACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE ;PROPERTY TAXES 31001 �CURRENTTAXES $82,965 $70,844 $74,808 $34.214 $78.666 5,16% 31002 DELINQUENT TAXES 2,490 880 0 4.729 0 0.00% 31003 FISCAL DISPARITIES TAXES 1,154 1,396 1,110 136 2.210 99.10% 31004 PENALTIES & INTEREST (31) 0 0 (36) 0 0.00% TOTAL FINES & FORFEITS 1 1 $86,578 $73,120 $75.918 $39,043 $80,876 6.53% MISCELLANEOUS 36210 INTEREST EARNINGS 678 2,090 500 617 500 0.00%1 39100 BOND PROCEEDS 1.622 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0.00%I TOTAL MISCELLANEOUS $2.300 $2,090 $500 $617 $500 0.00% TOTAL REVENUES $88,878 $75.210 $76.418 $39,660 $81,376 6.49% EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL 610 BOND INTEREST 620 FISCAL AGENT FEES 720 (TRANSFERS OUT $60,000 $65,000 $60,000 $60,000 $60,000, 0.00% 15,755 14,827 13,765 13,765 12,6401 -8.17% 2,071 1.425 600 7,500 1,5001 150.00% 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $77,826 $81,252 $74,365 $81,265 $74,140 -0.30% TOTAL EXPENDITURES $77,826 $81,252 $74,365 $81,265 $74,140 I -0.30% ,FUND BALANCE - JANUARY 1 $119,892 I $130.944 $124,902 $130,944 $89,339 (EXCESS REVENUE OVER EXPENDITURES $11.052 I ($6,042) $2,053 ($41,605) $7,236 FUND BALANCE - DECEMBER 31 $130.944 1 $124,902 $126,955 $89,339 $96,575 I-23.93% 39 2006 IMPROVEMENT BOND FUND DEPARTMENT: 2006 Improvement Bond SUPERVISOR: Finance Officer FUND #: 303 ACTIVITY #: 4700 ACTIVITY DESCRIPTION: The 2006 Improvement Bonds were issued to finance road improvements on Big Fox Road, Little Fox Lane, Haven Lane, and Tessier Road. GOALS: None as this bond was retired in 2013. MEASURABLE WORKLOAD DATA 2018 ACTUAL Bond Principal Retired $0 Bond Interest Paid $0 Special Assessments Collected $0 2019 2020 ACTUAL ACTUAL $0 $0 $0 $0 $0 $0 DEBT PAYMENT SCHEDULE: JAN. 1 DEBT YEAR DUE OUTSTANDING PRINCIPAL DUE Debt was retired in 2013 2021 ESTIMATE $0 $0 $0 INTEREST DUE BUDGET COMMENTARY: This fund will receive its revenue from special assessments levied against benefiting properties. The main expenditures in 2018 was for a transfer to improvement funds to remove remaining fund balances. This Fund is being shown for historical purposes only for the activity in 2018. 40 BUDGET: 303 2006 IMPROVEMENT BONDS jR EVENUE BUDGET ACCT. - # ACCOUNT DESCRIPTION SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS -CURRENT 36102 SPECIAL ASSESSMENTS - DELINQUENT 36103 PENALTIES & INTEREST 36104 SPECIAL ASSESSMENTS - PREPAID/SNR TOTAL FINES & FORFEITS MISCELLANEOUS 36210 INTEREST EARNINGS 39100 IBOND PROCEEDS 39200 TRANSFERSIN TOTAL MISCELLANEOUS TOTAL REVENUES 'EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL 610 BOND INTEREST 620 FISCAL AGENT FEES 720 TRANSFERS OUT 12/17/2019 11/17/2020 2018 2019 2020 11/9/20 2021 % ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE 1 $0 $0 SO $0 $0 0.00%i 0 0 0 0 0 0.00%� 0 0 0 0 01 0.00% 0 0 0 0 j 0 I 0.00% $0 $0 $0 $0 $0 1 0.00% 269 0 0 0 0 0.00%I 0 0 0 0 0 0.00%1 0 0 0 0 0 0.00%1 $269 $0 SO SO $0 0.00%1 i $269 $0 $0 $0 $0 0.00% I $0 $0 $0 50 $0 0.00% 0 0 0 0 0 l 0.00%j 1,399 0 0 0 0I 0.00% 49,299 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $50.698 50 $0 SO $0 0.00% TOTAL EXPENDITURES $50,698 $0 $0 $0 SO 0.00% FUND BALANCE - JANUARY 1 $50,429 ` $0 $0 $0 l $0 EXCESS REVENUE OVER EXPENDITURES ($50,429)1 $0 SO $0 $0 FUND BALANCE - DECEMBER 31 $0 $0 $0 $0 l $0, 0.00% 41 2018 IMPROVEMENT BOND FUND DEPARTMENT: 2018 Improvement Bond SUPERVISOR: Finance Officer FUND #: 305 ACTIVITY #: 4700 ACTIVITY DESCRIPTION: The 2018 Improvement Bonds were issued to finance the reconstruction of Scheuneman Road in the business district and to extend water and sanitary sewer in the area. GOALS: 1. Pay debt payments on a timely basis as scheduled. MEASURABLE WORKLOAD DATA 2018 ACTUAL Bond Principal Retired $0.00 Bond Interest Paid $0.00 Property Tax Levy Collected $0.00 Special Assessments Collected $0.00 DEBT PAYMENT SCHEDULE: vFAR ni ip 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 JAN. 1 DEBT OUTSTANDING $630,000.00 $595,000.00 $555,000.00 $515,000.00 $475,000.00 $435,000.00 $395,000.00 $350,000.00 $305,000.00 $260,000.00 $210,000.00 $160,000.00 $110,000.00 $55,000.00 2019 2020 ACTUAL ACTUAL $0.00 $30,000 $24,056 $22,400 $1,674 $3,536 $71,151 $70,592 PRINCIPAL DUE $35,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $45,000.00 $45,000.00 $45,000.00 $50,000.00 $50,000.00 $50,000.00 $55,000.00 $55,000.00 42 2021 ESTIMATE $35,000 $21,425 $9,065 $61,830 INTEREST DUE $21,425.00 $20,300.00 $19,100.00 $17,900.00 $16,700.00 $15,500.00 $14,225.00 $12,875.00 $11,300.00 $9,400.00 $7,400.00 $5,400.00 $3,300.00 $1,100.00 BUDGET COMMENTARY: This fund will receive its revenue from a property tax levy and special assessments. Annual debt service payments are the only expenditures budgeted in this fund. BUDGET: 305 2018 IMPROVEMENT BONDS _ I REVENUE BUDGET 12117/2019 _ 11117/2020 r ACCT. 2018 2019 2020 11/9120 2021 % $ JACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL J ADOPTED CHANGE !PROPERTY TAXES i I 31001 CURRENTTAXES $0 $571 $3,792 $1,733 j $8,770 f 131.28% 31002 DELINQUENT TAXES 0 0 0 38 0 0.00% 31003 FISCAL DISPARITIES TAXES 0 11 1,125 I _ (3)I 295 -73.78% 31004 PENALTIES & INTEREST 0 0 0 01 0 0.00% TOTAL FINES & FORFEITS $0 $582 $4,917 $1,768 $9,065 84.36% (SPECIAL ASSESSMENTS J 36101-SPECIAL ASSESSMENTS -CURRENT 0 71,151 54,000 524,119 61,830 _ 14.50% 36102 SPECIAL ASSESSMENTS -DELINQUENT 0 0 0 9,248 0 0.00% 36103 PENALTIES & INTEREST 0 828 0 1,329 0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0.00% TOTAL FINES & FORFEITS i $0 $71.979 $54,000 $35,296 $61,830 14.50% MISCELLANEOUS 36210 INTEREST EARNINGS 0 (386) 50 51 50 0.00% 39100 BOND PROCEEDS 12,631 0 0 01 0 0.00% 39200 TRANSFERS IN 0 0 0 01 0 0.00% TOTAL MISCELLANEOUS $12,631 ($386) S50 $51 I $50 0.00% TOTAL REVENUES $12,631 $72,175 $58,967 $37,115 $70,945 20.31% EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL $0 $0 $30,000 $30,000 $35,000 16.67% 610 BOND INTEREST 0 24,056 22,400 22,400 21,425 -4.35% 620 FISCAL AGENT FEES 0 1,525 700 2.500 700 0,00% 720 TRANSFERS OUT 0 0 0 0 0 0.00%I f TOTAL CAPITAL OUTLAY $0 $25,581 $53,100 $54,900 $57,125 7.58%1 I f I III (TOTAL EXPENDITURES i $0 $25.581 $53,100 $54,900 $57,125 7.58% FUND BALANCL - JANUARY 1 SO $12,631 $59,225 $0 ($17,785), EXCESS REVENUE OVER EXPENDITURES $12,631 $46,594 $5.867 i ($17,785), $13,820 FUND BALANCE - DECEMBER 31 S12,631 $59.225 $65,092 I ($17,785) ($3,965) -106.09% 43 THIS PAGE INTENTIONALLY LEFT BLANK 44 CAPITAL IMPROVEMENT FUNDS CAPITAL IMPROVEMENT FUNDS ACTIVITY DESCRIPTION. 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 required payments. GOALS: Construct and replace the City's infrastructure on a tirnely 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 M BUDGET CAPITAL IMPROVEMENT FUND SUMMARY REVENUE BUDGET 12117/2019 11/17/2020 ACCT 2018 2019 2020 11/9120 2021 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS $45,252 $48,121 $40,000 $20,615 $39,680 -0.80% 36102 DELINQUENT SPECIAL ASSESSMENTS $974 $669 $0 $1.337 $0 0 00% 36103 PENALTIES & INTEREST $92 $509 $0 $241 $0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAIDISNR $33.318 $1,700 $0 $0 $0 0.00% TOTAL SPECIAL ASSESSMENTS $79,636 $50,999 $40,000 $22,193 $39,680 -0 80% MISCELLANEOUS 36210 INTEREST EARNINGS (1,461) 3,884 1,250 232 1.750 40.00% 36200 MISCELLANEOUS 342 0 0 0 0 0.00% 39100 BOND PROCEEDS 666,596 0 0 0 0 0 00% 39200 TRANSFERS IN 81,024 20,000 25,000 25,000 25,000 0.00% TOTAL MISCELLANEOUS $746.501 $23,884 $26,250 $25,232 $26 750 1.90% TOTAL REVENUES $826,137 $74,883 $66.250 $47,425 $66,430 0 27% EXPENDITURE BUDGET OTHER SERVICES & CHARGES 302 ENGINEERING FEES 85,275 0 0 0 0 0 00% 304 LEGAL FEES 1,017 0 0 0 0 0 00% 335 ARCHITECT FEES 0 0 0 0 0 0,00% 308 OTHER PROFESSIONAL SERVICE 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0.00% 310 CONFERENCE REGISRATIONS 0 0 0 0 0 0.00% 333 MEETING PREPARATION 0 0 0 0 0 0 00% 351 LEGAL. NOTICE PUBICATIONS 0 0 0 0 0 0 00% 610 INTEREST 0 0 0 0 0 0 00% 620 FISCAL AGENT FEES 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $86,292 $0 $0 $0 $0 0 00% CAPITAL OUTLAY 531 OTHER IMPROVEMENTS 0 0 0 0 0 0 00% 520 BUILDING CONSTRUCTION 0 0 0 0 0 0 00% 720 OPERATING TRANSFERS 508,037 58,890 61.024 0 0 -100.00% TOTAL CAPITAL OUTLAY $508,037 $58,890 $61,024 $0 $0 -100 00% TOTAL EXPENDITURES $594,329 $58,890 $61,024 $0 $0 -100 00% FUND BALANCE - JANUARY 1 ($247,392) ($15,584) $409 ($15,584) $31,841 EXCESS REVENUE OVER EXPENDITURES $231,808 $15,993 $5,226 $47,425 $66,430 FUND BALANCE - DECEMBER 31 ($15,584) $409 $5,635 $31.841 $98,271 1643 94% 47 IMPROVEMENT FUND DEPARTMENT: Improvement Construction SUPERVISOR: City Engineer FUND #: 401 ACTIVITY #: 4800 ACTIVITY DESCRIPTION: The Improvement Fund was established for current and future improvement projects within the City GOALS: None MEASURABLE WORKLOAD DATA: 2018 2019 2020 2021 ACTUAL ACTUAL ACTUAL ESTIMATED Since this fund was ciosea 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 ernerald ash bore tree replacement/treatments. The City is budgeting a transfer from the General Fund to the Improvement Fund in 2018, 2019. 2020, and 2021 to help fund future project. Currently there are no improvement expenditures budgeted for 2021. The transfer out was to the Parks and Playground for a possible future sidewalk along County Road E BUDGET: 401 IMPROVEMENTFUND REVENUE BUDGET 12/17/2019 11/17/2020 ACCT 2018 2019 2020 1119/20 2021 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE MISCELLANEOUS 36210 INTEREST EARNINGS $1.438 $5,654 $1,800 $2.069 $2,000 11 11% 36200 MISCELLANEOUS 0 0 0 0 0 0.00% 39100 BOND PROCEEDS 0 0 0 0 0 0.00% 39200 TRANSFERSIN Road Improvements 0 0 0 0 0 0.00% EAB Treatment I P revent ion 0 0 0 0 0 0,00% Building Improvements/Replacement 0 0 0 0 0 0 00% Future Improvements 81.024 20,000 25,000 25.000 25,000 0 00% TOTAL MISCELLANEOUS $82,462 $25,654 $26,800 $27.069 $27,000 0 75% TOTAL REVENUES $82,462 $25,654 1;26,800 $27.069 $27.000 0 75% EXPENDITURE BUDGET OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 0 0 0 0.00% 304 LEGAL FEES 0 0 0 0 0 0,00% TOTAL OTHER SERVICES & CHARGES $0 $0 $0 $0 $0 0 00% CAPITAL OUTLAY 531 OTHER IMPROVEMENTS 0 0 0 0 0 0,00%, WATER IMPROVEMENTS 0 0 0 0 0 0 00% 720 OPERATING TRANSFERS 0 0 61,024 0 0 -100 00% TOTAL CAPITAL OUTLAY s0 $0 $61,024 $0 s0 -100 00% TOTAL EXPENDITURES $0 s0 $61,024 $0 $0 -100 00% FUND BALANCE - JANUARY 1 $134,172 $216,634 $242.288 $216,634 $243,703 EXCESS REVENUE OVER EXPENDITURES $82,462 $25,654 ($34,224) $27,069 $27,000 FUND BALANCE - DECEMBER 31 $216,634 $242.288 $208,064 $243,703 $270.703 30.11% 49 SCHEUNEMAN ROAD IMPROVEMENT FUND DEPARTMENT: Scheuneman Road Improvement SUPERVISOR: City Engineer FUND #: 403 ACTIVITY #: 4800 ACTIVITY DESCRIPTION The Scheuneman Road Improvement fund recorded bond proceeds and sewer improvement and road resurfacing costs on Scheuneman Road. GOALS: None. MEASURABLE WORKLOAD DATA 2018 2019 2020 2021 ACTUAL ACTUAL ACTUAL ESTIMATED No service levels have been established for this fund. BUDGET COMMENTARY This fund in the past paid for the installation of a sanitary sewer line down Scheuneman Road and to reconstruct the street. The City issued bonds to finance the project and collected special assessments from the benefitting properties. The last special assessment payment was made in 2015. The City extended the sanitary sewer line and water mains all the way down Scheuneman Road through the business district and reconstructing the street with storm water improvements. The revenue source will be from special assessments on benefitting properties: however, there could be a City contribution to the project in the form of a property tax levy and/or use of City reserves. The City issued $660,000.00 in improvement bonds to fund this project in 2018. BUDGET 403 SCHEUNEMAN ROAD IMPROVEMENT REVENUE BUDGET ACCT 2018 # ACCOUNT DESCRIPTION ACTUAL 12117/2019 11/17/2020 2019 2021 11/9/20 2021 ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS - CURRENT $0 $0 $0 $0 $0 0.00% 36102 SPECIAL ASSESSMENTS - DELINQUENT 0 0 0 0 0 0 00% 36103 PENALTIES & INTEREST 0 0 0 0 0 0 00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0 00% TOTAL SPECIAL ASSESSMENTS $0 $0 $0 $0 $0 0 00% MISCELLANEOUS 36210 INTEREST EARNINGS 155 1.012 250 73 250 0 00% 36200 MISCELLANEOUS 0 0 0 0 0 0 00% 39100 BOND PROCEEDS 666,596 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $666,751 $1,012 $250 $73 $250 0,00% TOTAL REVENUES $666,751 $1,012 $250 $73 $250 0.00% EXPENDITURE BUDGET OTHER SERVICES & CHARGES 302 ENGINEERING FEES 85.275 0 0 0 0 0 00% 304 LEGAL FEES 1,017 0 0 0 0 0 00% TOTAL OTHER SERVICES & CHARGES $86,292 $0 $0 $0 $0 0 00% CAPITAL OUTLAY 531 OTHER IMPROVEMENTS 508.037 58,890 0 0 0 0 00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 00°% TOTAL CAPITAL OUTLAY $508,037 $58,890 $0 $0 $0 0 00% TOTAL EXPENDITURES $594,329 $58,890 $0 $0 SO 0 00'/ FUND BALANCE - JANUARY 1 ($16.754) $55,668 ($2,210)� $55,668 $55,741 EXCESS REVENUE OVER EXPENDITURES $72.422 ($57,878) $250 $73 $250 FUND BALANCE - DECEMBER 31 $55,668 ($2,210) ($1.960) $55 741 $55,991 -2956 68% FUTURE IMPACTS: There are no future impacts at this time for this fund. HOFFMAN ROAD IMPROVEMENT FUND DEPARTMENT: Hoffman Road Improvement SUPERVISOR: City Engineer FUND #: 404 ACTIVITY #: 4800 ACTIVITY DESCRIPTION. The Hoffman Road Improvement Fund is used to provide the City's share of future road improvements/maintenance on Hoffman Road ClTGM=] Improve and maintain Hoffman Road on timely basis. 2 The City extended municipal water into the business district to help with redevelopment efforts. MEASURABLE WORKLOAD DATA: 2018 2019 2020 2021 ACTUAL ACTUAL ACTUAL ESTIMATED No service levels have been established for this fund. BUDGET COMMENTARY: Current revenue sources include special assessments on benefitting properties for extending municipal water in 2015. Expenditures in 2015 and 2016 were for extending municipal water into the business district area from Hoffman Road. BUDGET: 404 HOFFMAN ROAD IMPROVEMENT REVENUE BUDGET 12117/2019 11/1712020 ACCT 2018 2019 2021 11/9/20 2021 % p ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS - CURRENT 45,252 48,121 40,000 20,615 39,680 -0 80% 36102 SPECIAL ASSESSMENTS - DELINQUENT 974 669 0 1,337 0 000% 36103 PENALTIES & INTEREST 92 509 0 241 0 000% 36104 SPECIAL ASSESSMENTS - PREPAIDJSNR 33,318 1,700 0 0 0 0.00% TOTAL SPECIAL ASSESSMENTS $79.636 $50,999 $40,000 $22,193 $39,680 -0.800/1. MISCELLANEOUS 36210 INTEREST EARNINGS ($3.054) ($2.782) ($800) ($1,910) ($500) -37 50% 36200 MISCELLANEOUS 342 0 0 0 0 0.00% 39100 BOND PROCEEDS 0 0 0 0 0 0,00% 39200 TRANSFERS IN 0 0 0 0 0 000% TOTAL MISCELLANEOUS ($2,712) ($2,782) ($800) ($1.910) ($500) -37.50°% TOTAL REVENUES $76,924 $48,217 $39,200 $20,283 $39.180 -0 05% EXPENDITURE BUDGET OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 0 0 0 0 00%• 304 LEGAL FEES 0 0 0 0 0 0 00%. 308 ADMINISTRATION 0 0 0 0 0 000% 351 LEGAL NOTICES 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0,00°% TOTAL OTHER SERVICES & CHARGES $0 $0 $0 $0 $0 0,00% CAPITAL OUTLAY 531 OTHER IMPROVEMENTS 0 0 0 0 0 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 0 00 % TOTAL EXPENDITURES $0 $0 $0 $0 s0 0.00% FUND BALANCE - JANUARY 1 ($357,159) ($280,235) ($232,018) ($280,235) ($259.952) EXCESS REVENUE OVER EXPENDITURES $76,924 $48,217 $39,200 $20,283 $39,180 FUND BALANCE - DECEMBER 31 ($280,235) ($232,018) ($192,818) (•$259,952) ($220,772) 14 50% FUTURE IMPACTS Future impacts would be the cost of the improvements/maintenance on Hoffman Road. Extending water into the business district will result in the City maintaining an Enterprise Fund for its water operations in the future, as businesses connect to the new water system and/or the system expands. THIS PAGE INTENTIONALLY LEFT BLANK ;4 ENTERPRISE FUNDS 55 ENTERPRISE FUNDS ACTIVITY DESCRIPTION. The Enterprise Funds are established to finance and account for the acquisition, operation, and maintenance of governmental facilities and services, which are entirely or predominantly self- supporting by user charges. The City operates two Enterprise Funds. The accrual basis of accounting is used for these funds. However, for budget purposes capital outlay items are recorded as expenses. This page is a summary of the Enterprise Funds. GOALS: See the individual funds for their goals. MEASURABLE WORKLOAD DATA. See individual funds for their measurable workload data BUDGET COMMENTARY The main revenue source for all Enterprise Funds is the quarterly utility billings to system users See individual funds for budget explanations and charges. 56 BUDGET ENTERPRISE FUND SUMMARY REVENUE BUDGET 12/1712019 11117/2020 ACCT 2018 2019 2020 11/9/2020 2021 % N ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERVCIES 34410 LOCAL CONNECTION CHARGES $7.893 $19.135 $2,000 $6.707 $1,500 -25 00% 34500 ENTERPRISE REVENUES - RESIDENTIAL 12,822 19,036 22,500 25.322 27,000 20.00% 34600 ENTERPRISE REVENUES - COMMERCIAL 30,444 25.000 25,000 23.166 32.ODO 2800% 34640 CERTIFIED SEWER REVENUES 2,892 6.693 2,000 1.150 2,000 0 00% 34650 PENALTIES & INTEREST 1,160 1,502 1.000 101 1,200 20.00% TOTAL CHARGES FOR SERVICES $55,211 $71.466 $52.500 $55.445 $63,700 21.33% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 0 DO% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 000% 36103 PENALTIES & INTEREST 0 0 0 0 0 0.OD% TOTAL SPECIAL ASSESSMENTS $0 $0 $0 $0 $0 0.00% MISCELLANEOUS 36200 MISCELLANEOUS 1,506 151,229 0 0 0 0.00% 36210 INTEREST INCOME 4.072 8,81% 1,830 3.257 2050 1202% 39200 OPERATING TRANSFERS 722,578 0 0 0 0 000% TOTAL MISCELLANEOUS $728.155 $160.115 S1,830 $3.257 52,050 1202% TOTAL REVENUES $783,367 $231,581 $54.330 $61,703 $65,750 2102% EXPENDITURE BUDGET SUPPLIES 201 OFFICE SUPPLIES 0 0 200 0 200 000% 210 OPERATING SUPPLIES 0 0 0 0 0 000% 212 POSTAGE 0 0 250 0 250 000% 250 SALES TAX 0 0 0 0 0 0 OD% TOTAL SUPPLIES SO $0 $450 SO S450 000% OTHER SERVICES & CHARGES 301 AUDITING & ACCOUNTING SERVICES 2.700 2.8W 2,BB5 0 3,000 3,99% 302 ENGINEERING FEES 0 0 5.000 4.104 5,000 0.00% 318 M C E S. CHARGES 29.486 24.W9 33,915 31,087 35,840 14.52% 319 LOCATES 993 152 1.200 150 800 -33 33% 329 FINANCIAL SERVICE 1,314 0 2.000 4 1.000 -5000% 334 COMPUTER SERVICES 0 0 500 0 5DD 0.00% 400 REPAIR/MAINTENANCE 34 21,790 4,000 4.207 5.000 2500% 420 DEPRECIATION 23.744 28,590 27.DDO 0 41.500 53,70% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0,00% 450 SEWER INSPECTIONS 41.163 0 0 0 25,0W 0.00% 461 SEWER FLUSHING 0 0 12,5DO 0 23,500 000% TOTAL OTHER SERVICES & CHARGES $99.434 $78,241 $89.000 S39.552 $144.140 61 96% CAPITAL OUTLAY 54C HEAVY MACHINERY/EQUIPMENT 0 0 0 0 O 000% 530 OTHER EQUIPMENT & IMPROVEMENTS 0 0 0 0 0 000% 720 OPERATING TRANSFERS 0 D 0 0 0 O.00k TOTAL CAPITAL OUTLAY $0 SO SO $0 $0 0.00% TOTAL EXPENDITURE BUDGET $99,434 $78,241 $89.450 $39.552 $144.5W 61 64% FUND BALANCE - JANUARY 1 $476,304 $425.324 $454.037 $425.324 $447,476 EXCESS REVENUE OVER EXPENDITURES $681,587 $151.350 (S35,120) S22.151 ($78.840) DEDUCT INFRASTRUCTION ADDTIONS ($756.311) ($151,227) $0 $0 $0 ADD BACK DEPRECIATION $23.744 S28,590 $27,000 $0 $41,500 FUND BALANCE - DECEMBER 31 $425.324 $454,037 $445,917 $447,475 S410.135 -6 02% INVESTMENT IN INFRASTRUCTURE $468,282 $1.200.849 $1.323.488 $1,200.849 $1,200,849 ADDITIONS (DELETIONS) $756,311 $151.229 $D $0 $0 DEPRECIATION ($23 744) ($28,590) ($27,000) $0 ($41.500) NET INVESTMENT IN INFRASTRURE $1,2W.849 $1,323.488 $1,296.488 $1.200,549 $1,159.349 -10.58% 57 SEWER OPERATING FUND ENTERPRISE FUNDS ACTIVITY DESCRIPTION: The Sewer Operating Fund 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. GOALS: 1. Keep all lift stations and sewer lines functioning safely and efficiently. MEASURABLE WORKLOAD DATA. 2018 ACTUAL Gals of Sewage Treated (Millions) 10.91 Miles of Sewer Lines Service Connections BUDGET COMMENTARY. 2019 2020 2021 ACTUAL ACTUAL ESTIMATED 12.65 12.75 15.67 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 $37,500 and currently no rate increase was used to estimate 2021 revenues; however, The City will review its rates and adjust if needed to properly fund future sewer operations. Interest income is another revenue source and is based on estimated interest earning, On the expense side, 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 wastewater has increased. For 2021, the M.C.E.S. Charges have increased 14.52% to $38,840. Since sewer flows have been increasing over the past several years, the City is budgeting $25.000 to inspect sewer lines for infiltration of ground water into the system The City also annually budgets to flush (clean) sewer lines to prevent sewer nacKups. For 2021, $20,000 is budgeted to flush sewer lines. 58 BUDGET SEWER OPERATING FUND REVENUE BUDGET 12/17/2019 11/1712020 ACCT 2018 2019 2020 1102.0 2021 % A ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERVCIES 34410 LOCAL SAC CHARGES $7.025 $16.254 $1,000 $7,995 51,000 000% 346M SEWER REVENUES - RESIDENTIAL 12,650 16,879 12,500 17.674 15,000 20 00% 34600 SEWER REVENUES - COMMERCIAL 30,444 25,DW 25.000 23,166 32.000 28 00% 34640 CERTIFIED SEWER REVENUES 2.892 6,693 2,000 1,150 2,000 00D% 34650 PENALTIES 8 INTEREST 1,160 1.602 1,000 79 1.200 20.00% TOTAL CHARGES FOR SERVICES $54.171 $65,428 341,500 $50,064 S51,200 23 37% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 000% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 000% 35103 PENALTIES & INTEREST 0 0 0 0 0 0.00% TOTAL SPECIAL ASSESSMENTS $0 SO $0 $0 £0 0 OD% MISCELLANEOUS 36200 MISCELLANEOUS 1.506 20,886 0 0 0 0.00% 36210 INTEREST INCOME 4,056 8,981 1.800 3.537 2000 1111% 39200 OPERATING TRANSFERS 157,767 0 0 0 0 0.00% TOTAL MISCELLANEOUS $163,319 $29,867 51,B00 $3.537 S2,D00 11 11% TOTAL REVENUES $217.490 S95.295 $43,300 $53,601 S53,200 22.861A EXPENDITURE BUDGET SUPPLIES 201 OFFICE SUPPLIES 0 u 200 0 200 000% 210 OPERATING SUPPLIES 0 0 0 0 0 000% 212 POSTAGE 0 0 250 0 250 000% 250 SALES TAX 0 0 0 0 0 0 00'/b TOTAL SUPPLIES $0 SO S450 S0 $450 000% OTHER SERVICES & CHARGES 301 AUDITING & ACCOUNTING SERVICES 2,7DO 2.800 2.885 D 2.500 A3 34% 302 ENGINEERING FEES 0 0 5,000 4,104 5.000 0.00% 318 M C.E S CHARGES 29.486 24.909 33.915 31.087 38.540 14 52% 319 LOCATES 993 152 1,200 150 8O0 -33.33% 329 FINANCIAL SERVICE 1.314 0 2,000 4 1,000 50.00% 334 COMPUTER SERVICES 0 0 500 0 500 000% 400 REPAIR/ MAINTENANCE 34 12.591 4,00 (6,103) 5.000 25.DD% 420 DEPRECIATION 13.917 16,C66 15,000 0 16.500 10.00% 433 DUES & SUBSCRIPTIONS 0 0 D 0 0 0.00% 460 SEWER INSPECTIONS 41,163 0 0 0 25,000 0.00% 461 SEWER FLUSHING 0 0 12.000 0 20.000 0.00% TOTAL OTHER SERVICES & CHARGES S89,607 $56,518 $76,500 $29.242 $115,140 50.51% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0.00% 530 OTHER EQUIPMENT& IMPROVEMENTS 0 0 0 0 0 0,00% 720 OPERATING TRANSFERS 0 0 0 0 0 000% TOTAL CAPITAL OUTLAY $0 $0 SO $D $0 000% TOTAL EXPENDITURE BUDGET $89,607 $56.518 $76,950 S29,242 S115,590 5021% FUND BALANCE - JANUARY 1 S476,304 S442.851 $476,8D9 $442,851 $467,210 EXCESS REVENUE OVER EXPENDITURES S127,BB3 $38,777 (S33.650) $24.359 (S62.39D) DEDUCT INFRASTRUCTION ADDITIONS (3175.253) ($20,885) £0 SO $0 ADD BACK DEPRECIATION $13,917 $16.066 $15.000 $0 $16,500 FUND BALANCE - DECEMBER 31 3442.851 S476,809 $458,159 $467.210 $421.320 -8 04% INVESTMENT IN INFRASTRUCTURE $455.825 $617 161 $621,981 $455,825 S455,625 ADDITIONS (DELETIONS) $175.253 $20.B86 $0 $0 $0 DEPRECIATION ($13,917) (516,066) ($15,DD0) $0 ($15,500) NET INVESTMENT IN INFRASTRURE $617,161 $621,961 3808,981 $455,825 $439,325 -2762% 59 WATER OPERATING FUND ENTERPRISE FUNDS ACTIVITY DESCRIPTION: The Water Operating Fund is responsible for the maintenance of all water lines in the City. The Water Operating Fund is self-sustaining from revenues derived from utility charges. GOALS: 1. Keep all water lines functioning safely and efficiently MEASURABLE WORKLOAD DATA. Gals of Water Used BUDGET COMMENTARY. 2018 2019 2020 2021 ACTUAL ACTUAL ACTUAL ESTIMATED 0.00 253,500 260,000 275,000 The main revenue source is water revenues, which are based on the number of gallons used. Water charges are estimated to generate revenues of $12,000 and currently no rate increase was used to estimate 2021 revenues, however the rates will be monitored to be sure customers are paying for the operations and replacement of the system. Interest income is another revenue source and is based on estimated interest earning. On the expense side, the largest expense within Other Services and Charges are the charges from other communities for the use of their water system. 60 BUDGET: WATER OPERATING FUND REVENUE BUDGET 1211712019 1111712020 ACCT 2018 2019 2020 111912020 2021 % A ACCOUNT DESCRIPTION ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERVCIES 32246 SALE OF WATER METERS $868 $2,881 $1.000 $712 5500 -50.00% 34410 LOCAL WAC CHARGES 9 000 31,500 $8.000 4,500 SS.00U -37,50% 345M WATER REVENUES - RESIDENTIAL 172 3, 157 10.000 7.646 12.U00 20.00% 34600 WATER REVENUES - COMMERCIAL 0 0 0 0 0 000% 34640 CERTIFIED SEWER REVENUES 0 0 0 0 0 0.00% 34650 PENALTIES & INTEREST 0 0 0 22 0 0 DO% TOTAL CHARGES FOR SERVICES $10.040 537,538 519.000 512.882 517,500 -789% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 000% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 0.00"h 36103 PENALTIES & INTEREST 0 0 t1 0 0 0.D09,5 TOTAL SPECIAL ASSESSMENTS $0 $0 50 SO $0 0 00% MISCELLANEOUS 36200 MISCELLANEOUS 0 130.343 0 0 0 0,00% 36210 INTERESTINCOME 16 (95) 30 (280) 50 6667% 39200 OPERATING TRANSFERS 564821 0 0 0 0 0OD% TOTAL MISCELLANEOUS S564,837 5130.248 $30 (5280) S50 66.67% TOTAL REVENUES 5574.877 S167.786 519,030 $12.802 517,550 -776% EXPENDITURE BUDGET SUPPLIES 201 OFFICE SUPPLIES 0 U 0 0 0 0 00% 210 OPERATING SUPPLIES U 0 0 0 0 000% 212 POSTAGE 0 0 D O 0 000% 215 WATER METER SUPPLIES 5.987 777 500 0 500 O.W'K 250 SALES TAX 0 0 0 0 0 0.00% TOTAL SUPPLIES $5,987 $777 5500 50 5500 000% OTHER SERVICES & CHARGES 301 AUDITING & ACCOUNTING SERVICES 0 0 0 0 500 0 00% 302 ENGINEERING FEES 0 0 0 0 D DOD% 318 WATER CHARGES 0 0 0 0 0 00014 319 LOCATES 0 0 0 0 0 000% 329 FINANCIAL SERVICE 0 0 0 0 0 000% 334 COMPUTER SERVICES 0 0 0 0 0 O.DD% 385 WATERISEWER UTILITIES 5,359 32.713 15,ODD 6.103 35.000 133.33% 4DO REPAIR/ MAINTENANCE 0 9.199 0 10,310 0 0.00% 420 DEPRECIATION 9.827 12,524 12,000 0 25,000 108.33% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 DOD% 460 WATER INSPECTIONS 0 0 0 0 0 0.00% 461 HYDRANTFLUSHING 0 0 500 0 3,500 DOD% TOTAL OTHER SERVICES & CHARGES $15.186 $54.436 527,5DO 516.413 564.000 132 73% CAPITAL OUTLAY 540 HEAVY MACHINERYIEQUIPMENT 0 0 0 U D 0.001/. 530 OTHER EQUIPMENT & IMPROVEMENTS 0 0 0 0 0 000%, 720 OPERATING TRANSFERS 0 0 0 D 0 000% TOTAL CAPITAL OUTLAY 50 SO SO SO SO 0 OD% TOTAL EXPENDITURE BUDGET $21,173 555,213 528000 516.413 554.5D0 13036% FUND BALANCE - JANUARY 1 $0 ($17,527) (522.7721 (S17.527) (521.338) EXCESS REVENUE OVER EXPENDITURES $553,704 $112.573 (S8.970) (53,811) (548,950) DEDUCT INFRASTRUCTION ADOTIONS (5581.058) (3130.342) SO SO SO ADD BACK DEPRECIATION $9.827 512,524 SIZOD0 SO $25.000 FUND BALANCE • DECEMBER 31 ($17,527) (522,772) ($19,742) IS21.338) (543,288) 119.27% INVESTMENT IN INFRASTRUCTURE SD 5571,231 5689 O50 5571,231 5571.231 ADDITIONS (DELETIONS) 5581.OSB 5130,343 $0 SO $0 DEPRECIATION (59,827) ($12,524) ($12.000) $D (525,000) NET INVESTMENT IN INFRASTRURE 5571,231 5689,050 $677,050 5571,231 $546.231 -19.32% 61 THIS PAGE INTENTIONALLY LEFT BLANK 62 APPENDIX 63 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 64 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 elernents of Minnesota's property tax relief system are. property tax levy reduction aids; the renter's credit, which relates property taxes to incorne 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. 65 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 cornmercial-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. STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS General 2001 Net Tax Capacity 2002-2021 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 LAND: Homestead First $115,000 0.35% First $600,000 0.55% $115,0004600,000 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 S150,000 1.50% Over $150,000 3.40% Over $150,000 2.00% $2,500 $2,000 $1,500 $1,000 $500 '10 CITY PROPERTY TAXES (no change in ESTIMATED market value) 5; it.t 52 19 7 2 t12 216 St 4111 36%1 3911419 $150,000/$126,260 $250,000/$235,260 $350,000/$344,260 $450,0001$450,000 $550 000 $111.0 000 TAXABLE MARKET VALUE DACTUAL 2016 FACTUAL 2017 OACTUAL 2018 MACTUAL 2019 13ACTUAL 2020 *ACTUAL 2021 67 $3.500 $3 000 $2.500 $2,000 $1 .500 $1 000 $500 $0 CITY PROPERTY TAXES (8 1% Increase 1n ESTIMATED market value) $2 833 53 171 53.302 $140.712 $234,520 $328.328 TAXABLE MARKET VALUE $422,136 $515,944 oACTUAL 2017 oACTUAL 2018 oACTUAL 2019 oACTUAL 2020 • PROPOSED 2021 CITY OF GEM LAKE PROPERTY TAX CHANGES 2018 2019 2020 2021 Final Final Final Final Levy Levy Levy Levy GENRAL LEVY 369,252 395,988 451,088 445,535 DEBT LEVY. - GENERAL DEBT LEVY 0 0 0 0 CAPITAL IMPROV. PLAN BONDS 84,399 77,989 75,918 80,876 2016 IMPROVEMENT BONDS 0 0 0 0 2018 IMPROVEMENT BONDS 0 612 3,792 9,065 TOTAL DEBT LEVY 84,399 78,601 79,710 89,941 TOTAL PROPERTY TAX LEVY 453,651 474,589 530,798 535,476 LESS: FISCAL DISPARITIES 9,953 14,179 13,179 14,735 NET PROPERTY TAXES 443,698 460,410 517,619 520,741 % CHANGE -11.98% -0.42% 12.43% -7.77% TAX CAPACITY 1,128,008 1,143,753 1,256,075 1,436,565 TAX RATE 39.335% 40.254% 41.289% 36.249% MEDIAN VALUE HOME 262,850 283,800 310,600 335,850 TAXABLE MEDIAN VALUE HOME 246,034 265,098 289,486 312,464 TAXABLE TAX CAPACITY 2,460 2,651 2,895 3,125 CITY TAXES $967.76 $1,06T13 $1,195.26 $1,132.65 68 CITY OF GEM LAKE, MN _ City Hall - 4200 Otter Lake Road = Gem Lake, NIN 55110-- RESOLUTION NO. 2020-16 17 NOVEMBER 2020 A RESOLUTION ADOPTING THE FINAL GENERAL FUND BUDGET AND FINAL AMOUNT TO BE RAISED BY PROIIIERTY TAXATION FOR THE YEAR 2021 WHEREAS, the City Treasurer has presented a TOTAL (Proposed) Budget of $492,385.00 which includes a General Tax Levy of $445,535.00 and a Debt Tax Levy of $89,941.00 for fiscal and calendar year 2021 based upon best estimates of costs for running the City of Gem Lake in 2021; and WHEREAS, the City Council did review, on November 17, 2020, the TOTAL Budget and Tax Levy for 2021 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 2021 Final General Fund Budget of $492,385.00 and the Final Property Tax Levy as follows General Property 'tax Levy $433,305 Debt Levy 87,436 Fiscal Disparities _ 14.735 Total Property Tax Levy $535,476 and; 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 Lindner and was supported by Councilor Cacioppo and was declared adopted based upon the following vote: NAME ARTIG- SWOMLEY CACIOPPO LINDNER KUNY AMLEE Vote yes es yes yes absent Attest I, Gloria Tessier, 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 actiop-taken by the,pjty Council of the City of Gem Lake on the date first written. 17 NOVEMBER 2020 TESSIER, City Clerk Look for us on the World Wide Web at gemlakemn.org 67 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. 70 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. 71 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 72 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. 73 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, speaai 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 74 the next for calculating property taxes. The limited market value system was phased -out by the State of Minnesota. 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. 75 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. 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. WP SPECIAL REVENUE FUND: To account for revenue derived from specific revenue sources that are legally restricted for specific purposes. 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. 77 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 Ill 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 W.