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2026 Adopted Budget
CITY OF GEM LAKE 2026 BUDGET Adopted By City Council 12/16/2025 Table of Contents How to Read the Budget ........................................... 1 Budget Message ...................................................... 2 Fund Structure and Basis of Budgeting ......................... 3 BudgetSummary ...................................................... 5 GeneralFund.......................................................... 7 Special Revenue Funds ............................................. 29 Debt Service Funds .................................................. 33 Capital Improvement Funds ....................................... 41 EnterpriseFunds......................................................45 Appendix.................................................................53 Resolution Approving Budget and Tax Levy.....................59 Glossary of Terms.....................................................60 HOW TO READ THE BUDGET The budget document serves two distinct purposes. One purpose is to present the City Council Members, residents and other interested readers, concise and readable information about City of Gem Lake. The other purpose is to provide management of the City with a financial and operating plan that conforms to the City's accounting system. The Budget Message provides an overview of the key policy issues and programs in the budget and presents major areas of emphasis. The Schedules and Summaries provide the heart of the document as an operating and financial plan. The General Fund and Special Revenue Funds section contains revenue and expenditure summaries. It also provides detail revenue and expenditure information, department descriptions, staffing levels, service level objectives and prior year accomplishments for all departments. The Debt Service Funds section contains information about the resources accumulated for the payment of general long-term debt principal and interest. The Capital Improvement Funds section contains revenue and expenditure information about the various construction projects within the Township. The Enterprise Funds section contains revenue and expenditure summaries for all Enterprise Funds. 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 Council Members, Citizens and Others: It is my privilege to present the 2026 budget for the City of Gem Lake. This budget, as adopted by the City Council identifies how the City's resources will be spent in 2026. 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 2026 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's budget focus has been to maintain services provided and existing infrastructure. Public safety remains a priority for the City for 2026, as the City has included increases to both the police and fire budgets. The road maintenance budget includes funds for a possible seal coat project to help the roads last longer. Finally, $20,000 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 89.1 % of total revenues for the City. The 2026 property tax levy is decreased 0.404%, while the City's tax capacity increase 4.152%, which results in a tax rate of 36.874% compared to 38.440% in 2025. Based on this most residents would see an decrease in their City's property tax bills from 2025 to 2026. As 2026 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 FUND STRUCTURE AND BUDGET BASIS The financial structure of City of Gem Lake is similar to other governments with the use of funds. Funds are the control structures that ensure that public moneys are spent only for those purposes authorized and within amounts authorized. Funds are established to account for different types of activities and legal restrictions that are associated with a particular government function. The Governmental Accounting Standards Board (GASB) defines a fund as: A fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. All of the funds used by the City must be classified into one of seven "fund types." Four of these fund types are used to account for the City's "governmental -type" activities and are known as "governmental funds." Two of these fund types are used to account for a government's "business -type" activities and are known as "proprietary funds." Finally, the seventh fund type is reserved for a government's "fiduciary activities." The City currently does not operate any fiduciary activities. Governmental Fund types are used to account for governmental -type activities. These are the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. The General Fund is used to account for most of the day-to-day operations of the City, which are financed from property taxes and other general revenues. Activities financed by the General Fund are those not accounted for in other funds. There can only be one General Fund. Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources, which, by law, are designated to finance particular functions, or activities of the City and which therefore cannot be diverted to other uses. The 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. 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 (ACFR) 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 ACFR 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 30th 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 December. 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. rd 2026 BUDGET SUMMARY BUDGET SUMMARY BY FUND TYPE REVENUE BUDGET 12/17/2024 11/30/2025 12/16/2025 2022 2023 2024 2025 2025 2026 % ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL PROPOSED CHANGE GENERAL FUND $532.634 $694,836 $773,552 $690,887 $548,877 $707,357 2.38% SPECIAL REVENUE FUNDS 13,116 2,667 2,464 1,000 913 1.682 68.20% DEBT SERVICE FUNDS 142,276 149,118 144,206 133,036 74,588 133,776 0.56% CARTAL IMPROVEMENT FUNDS 43,099 77,118 74,107 51,500 45,325 54,500 5.83% ENTERPRISE FUNDS 72,574 115,828 110,398 88,700 84,135 247,470 179.00% TOTAL REVENUES $803,699 $1,039,567 $1,104,727 $965,123 $753,838 $1,144,785 18.62% EXPENDITURE BUDGET GENERAL FUND $470,653 $499,250 $632,551 $680,286 $582,321 $707,357 3.98% SPECIAL REV ENUEFUNDS 2,896 5,348 1,117 1,000 0 5,000 400.00% DEBT SERVICE FUNDS 138,559 139,024 132,151 130,876 132,976 133,488 2.00% CAPITAL IMPROVEMENT FUNDS 3,413 179,723 0 108,000 0 105,000 562.00% ENTERPRISE FUNDS 108,030 93,959 92,131 168,685 83,190 352,960 109.24% TOTAL EXPENDITURES $723.551 $917,304 $857.950 $1,088,847 $798,487 $1,303,805 19.74% FUND BALANCE- JANUARY 1 $1,290,621 $1,290,621 $1,439,396 $1,693,124 $1,681.961 $1,637,312 EXCESS REVENUE OVER EXPENDITURES $80,148 $122,263 $246,777 ($123,724) ($44,649) ($159,020) INFRASTRUCTURE CHANGES $29,535 $38,866 $31,889 $39.500 $0 $39,500 FUND BALANCE -DECEMBER31 $1,400,304 $1,451,750 $1,718,062 $1.608,900 $1,637,312 $1,517.792 -5.66% 2026 ADOPTED REVENUES BY FUND TYPE GENERAL FUND 62% SPECIAL REVENUE FUNDS 0% DEBT SERVICE FUNDS ENTERPRISE 12% FUNDS 21 % CAPITAL IMPROVEMENT FUNDS 5% �� �S11�11ti ,..' t �i 111111�111 ' �;1�11 i l � 1 �11'11`I 11 1 �� 1 � �' i 111111`11 1�� 11 1 � 1 1 �/ 11 1 �� 11111 1�`1111 1 ! 1�1�1'�11 � '��1 ' ; �1 '1 � 1 1 •'� 1� 111�11� 11 '► � 1 � 1ii�1' r��{:,� r� 1 W 1 � .rti�, � *��1� �.1�11��1�1) .. �� 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 2026. The 2026 General Fund expenditure budget of $707,357 is a 3.98% increase from the City's 2025 budget, with a revenue budget of $707,357. 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. 2026 REVENUES BY CLASSIFICATION LICENSES & PERMITS 4.57% INTERGOVERNMENTAL REVENUES ■ r ■irr 0.99% rr�r rir■i irr ■ ■�■ CHARGES FOR SERVICES 1 18% FINES & FORFEITS 0 11 `Yo PROPERTY TAXES 89.07% MISCELLANEOUS 4.07% 9 2026 Expenditures By Department Operating Transfers Public Works $20,000 $75,850 General Government $388,996 Public Safety $222,511 GENERAL FUND BUDGET SUMMARY BY ACTIVITY REVENUES BY CLASSIFICATION 2022 ACTUAL 2023 ACTUAL 2024 ACTUAL 12/17/2024 2025 ADOPTED 11/30/2025 2025 ACTUAL 12/16/2025 2026 PROPOSED % CHANGE PROPERTY TAXES $461,648 $581,280 $611,597 $635,000 $333,871 $630,052 -0.78% LICENSES & PERMITS 33,936 24,061 45,638 29,200 120,681 32,340 10.75% INTERGOVERNMENTAL REVENUES 20,943 61,293 20,995 8,012 3,877 7,000 -12.63% CHARGES FOR SERVICES 4,716 5,233 32,261 3,225 52,949 8,375 159.69% FINES & FORFEITS 970 902 843 850 725 800 -5.88% MISCELLANEOUS 10,421 22,067 62,218 14,600 36,774 28,790 97.19% TOTAL REVENUES $532,634 $694,836 $773,552 $690,887 $548,877 $707,357 2.38% EXPENDITURES BY DEPARTMENT GENERAL GOVERNMENT CITY COUNCIL $9,746 $7,819 $7,751 $19,089 $7,266 $19,089 0.00% GENERAL GOVERNMENT 106,557 139,885 218,945 126,968 154,262 134,533 5.96% LEGAL SERVICES 56,885 10,573 11,881 54,750 10,847 37,500 -31.51% ELECTIONS 6,064 5,544 5,808 9,000 6,071 9,000 0.00% FINANCIAL ADMINISTRATION 44,449 49,623 39,592 52,900 37,335 52,100 -1.51% PLANNING & ZONING 43,161 49,026 61,777 55,000 75,657 67,000 21.82% HERITAGE HALL 27,543 23,135 44,380 57,650 67,867 69,775 21.03% TOTAL GENERAL GOVERNMENT $294,405 $285,605 $390,134 $375,357 $359,305 $388,996 3.63% PUBLIC SAFETY POLICE 91,186 113,184 140,568 147,402 145,189 153,537 4.16% FIRE PROTECTION 29,340 33,218 55,660 52,827 48,656 53,474 1.22% ANIMAL CONTROL 81 116 129 500 0 500 0.00% BUILDING INSPECTIONS 10,060 11,687 11,352 13,500 7,822 15,000 11.11% TOTAL PUBLIC SAFETY $130,667 $158,205 $207,709 $214,229 $201,667 $222,511 3.87% PUBLIC WORKS ROAD MAINTENANCE 9,522 27,948 7,835 40,200 1,349 37,350 -7.09% ICE & SNOW REMOVAL 12,629 7,492 3,778 23,500 0 24,000 2.13% PARKMAINTENANCE 3,430 0 3,095 7,000 0 14,500 107.14% TOTAL PUBLIC WORKS $25,581 $35,440 $14,708 $70,700 $1,349 $75,850 7.28% OPERATING TRANSFERS OPERATING TRANSFERS 20,000 20,000 20,000 20,000 20,000 20,000 0.00% TOTAL OPERATING TRANSFERS $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 0.00% TOTAL EXPENDITURES $470,653 $499,250 $632,551 $680,286 $582,321 $707,357 3.98% FUND BALANCE- JANUARY 1 EXCESS REV ENUE OVER EXPENDITURES $253,844 $61,981 $253,844 $195,586 $449,430 $141,001 $590,431 ' $10,601 $590,431 ($33,444) $556,987 $0 FUND BALANCE -DECEMBER31 $315,825 $449,430 $590,431 $601,032 $556,987 $556,987 -7.33% 10 REVENUES GENERALFUND ACTIVITY DESCRIPTION: To record and maintain all general operating revenues. These revenues will be used to finance the general operating expenditures of the City. GOALS: 1. Maintain stable, constant revenue sources. 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 $1,884,274 for taxes payable in 2026. This is an increase of 4.2%. The City's General Fund property tax levy for 2026 will be $611,435. Because of these two factors and the $85,778 debt levy, the 2026 tax rate for the City will be 36.874% compared with 38.440% in 2025, 38.248% in 2024 and 39.534% in 2023. All other 2026 City revenue sources were adjusted slightly or remained at the 2025 budget amounts based on actual past or anticipate amounts in 2026. REVENUE LEVELS 2023 2024 ACTUAL ACTUAL Tax Rate 39.534% 38.248% Net Taxable Tax Capacity 1,601,998 1,761,615 2025 2026 ACTUAL ESTIMATED 38.440% 36.874% 1,809,157 1,884,274 11 BUDGET: 12/17/2024 11 /30/2025 12/16/2026 ACCT. 2022 2023 2024 2025 2025 2026 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENTTAXES $450,239 $562,876 $593,058 $611,710 $319,917 $611,435 -0.04% 31002 DELINQUENT TAXES 247 3,794 1,604 0 2,636 0 0.00 31003 FISCAL DISPARITIES 11,162 14,610 17,290 23,290 11,318 18,617 -20.06% 31004 PENALTIES & INTEREST 0 0 (355) 0 0 0 0.00% TOTAL PROPERTY TAXES $461,648 $581,280 $611,597 $635,000 $333,871 $630,052 -0.78% LICENSES & PERMITS 32100 GENERAL BUSINESS LICENSES 2,550 2,505 300 2,500 5,200 2,500 0.00% 32101 ON -SALE LIQUOR LICENSES 4,050 4,050 3,850 4,000 7,900 4,000 0.00 32102 OFF SALE LIQUOR LICENSE 0 0 200 0 200 200 0.00 32103 NON -INTOXICATING LIQUOR LICENSES 0 0 0 0 0 0 0.00 32104 OTHER PERMITS 2,355 2,700 2,767 1,800 84 1,500 -16.67% 32106 TOBACCO LICENSE 200 400 1,025 200 2,875 2,000 900.00% 32107 CHARITABLE GAMBLING LICENSE 0 0 0 0 0 0 0.00% 32115 LICENSES LATE FEE 0 0 0 0 155 50 0.00 32201 CONTRACTOR LICENSE 1,800 1,755 1,903 1,700 2,600 1,500 -11.76% 32210 BUILDING PERMITS 13,403 9,345 24,141 11,000 73,311 13,000 18.18% 32211 PLUMBING PERMITS 915 800 670 800 7,252 800 0.00% 32212 GAS/HEATING PERMITS 2,295 1,150 1,252 2,000 11,390 1,500 -25.00% 32213 ELECTRICAL PERMITS 388 358 575 300 2,389 300 0.00% 32215 NPDES PERMIT 0 100 0 0 1,500 0 0.00% 32218 FIRE MARSHALL INSPECTION FEE 35 132 0 0 0 0 0.00% 32219 SEPTIC INSPECTION FEE 4,890 716 7,865 4,000 4,240 4,000 0.00% 32235 SEWER CONTRACTOR LICENSE 0 0 0 0 0 0 0.00 32239 RENTAL LICENSING 600 0 500 500 825 500 0.00% 32240 ANIMAL CONTROL LICENSE 455 50 590 400 625 400 0.00% 32241 CHICKEN LICENSE 0 0 0 0 85 40 0.00 32242 AGRICULTURAL LICENSES 0 0 0 0 50 50 0.00% TOTAL LICENSES & PERMITS $33,936 $24,061 $45,638 $29,200 $120,681 $32,340 10.75 INTERGOVERNMENTAL REVENUES 33401 LGA 0 0 1,076 0 3,877 0 0.00 33430 COUNTY GRANTS&AIDS 27 13 0 12 0 0 -100.00% 33601 SCOREGRANT 1,548 1,292 0 1,000 0 0 -100,00% 33603 POLICESTATEAID 0 0 0 0 0 0 0.00% 33602 CABLE TV FRANCHISE FEES 19,368 9,299 9,200 7,000 0 7,000 0.00% 33604 OTHER GOVERNMENT AIDS AND GRANTS 0 50,689 10,719 0 0 0 0.00 TOTAL INTERGOV. REVENUES $20,943 $61,293 $20,995 $8,012 $3,877 $7,000 -12.63% CHARGES FOR SERVICES 32220 SURCHARGE/SAC RETAINAGE 113 89 417 75 3,639 75 0.00% 32230 ADMINISTRATIVE CHARGES 0 60 89 0 0 0 0.00% 34105 PLANNING CHARGES 1,275 850 15,693 700 2,975 700 0.00% 34110 PLAN CHECK FEES 1,023 2,768 13,067 1,000 44,207 5,000 400.00% 34115 FALSEALARMS 150 400 1,350 350 650 500 42.86% 34121 SPECIAL ASSESSMENT SEARCHES 0 0 0 0 0 0 0.00 34122 ENGINEERING CHARGES 0 0 0 0 0 0 0.00% 34123 ZONING CHARGES 100 0 477 0 500 200 0.00 34126 CHARGES FOR LEGAL FEES 0 0 0 0 0 0 0.00% 34132 INVESTMENT ADMINISTRATIVE CHARGE 2,055 1,066 1,018 1,000 1,044 1,800 80.00% 34133 CREDIT CARD FEES 0 0 150 100 (66) 100 0.00 34135 CONTRACTUAL SERVICES 0 0 0 0 0 0 0.00% TOTAL CHARGES FOR SERVICES $4,716 $5,233 $32,261 $3,225 $52,949 $8,375 159.69% FINES & FORFEITS 35100 TRAFFIC & OTHER FINES 970 902 843 850 725 800 -5.88 TOTAL FINES & FORFEITS $970 $902 $843 $850 $725 $800 -5.88 MISCELLANEOUS REVENUES 36210 INTEREST EARNINGS (8,246) 11,146 13,262 8,000 11,179 18,290 128.63% 36231 CHARITABLE GAMBLING CONTRIBUTIONS 0 0 0 0 0 0 0.00% 36241 INSURANCE POLICY DIVIDENDS 490 148 0 100 0 0 -100.00% 36200 MISCELLANEOUS 12,993 6,109 41,446 2,000 19,680 6,000 200.00% 36400 FACILITY RENTAL 5,184 4,664 7,510 4,500 5,915 4,500 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $10,421 $22,067 $62,218 $14,600 $36,774 $28,790 97.19% TOTAL GENERAL FUND REVENUES $532,634 $694,836 $773,552 $690,887 $548,877 $707,357 2.38% 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: There are no budget changes from 2025 to 2026. BUDGET: CITY COUNCIL DEPARTMENT 41100 12/17/2024 11/30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $7,338 $7.248 $7,200 $9,000 $6,750 $9,000 0.00% 130 FICA CONTRIBUTIONS 551 551 551 689 516 689 0.00% 135 WORKERS COMPENSATION 84 0 0 100 0 100 0.00% TOTAL PERSONNEL SERVICES $7,973 $7,799 $7,751 $9,789 $7,266 $9,789 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 310 CONFERENCE REGISTRATION FEES 265 20 0 300 0 300 0.00% 333 MEETING EXPENSES 0 0 0 0 0 0 0.00% 364 OTHER INSURANCE 0 0 0 0 0 0 0.00% 449 COUNCIL CONTINGENCY 1.508 0 0 9,000 0 9,000 0.00% TOTAL OTHER SERVICES & CHARGES $1,773 $20 $0 $9,300 $0 $9,300 0.00% TOTAL CITY COUNCIL $9,746 $7.819 $7,751 $19.089 $7,266 $19,089 0.00% 13 Clerk/General Government General Fund ACTIVITY DESCRIPTION: The Clerk/General Government Budget provides for funds and support for all of the City programs and departments of overall nature to City operations, not specifically mentioned in this written budget report. These programs include Administration, Recording Secretary, Newsletters, Insurance and Memberships. The General Government Budget also provides contributions to various community oriented organizations. GOALS: Prompt publication of meeting minutes, ordinances, and legal notices. 2. Provide support for agencies, which provide service needs within the City. BUDGET COMMENTARY: Most line items adjusted based on current and past expenditure levels. Personnel Services increased to reflect wage increase and health insurance costs for the City Clerk. Miscellaneous Expenses increased to $10,000 based on current and past expenditures. Web Site decreased based on past expenditures. Computer Services and Recycling Collection expenditures are increased to reflect past expenditures. 14 BUDGET: CLERK/GENERAL GOVERNMENT DEPARTMENT 41900 ACCT. 2022 2023 2024 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL 12/17/2024 11 /30/2025 12/16/2025 2025 2025 2026 % ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $52,831 $52,969 $59,244 $55,617 $66,907 $55,000 -1.11% TEMPORARY EMPLOYEES 0 0 0 0 0 0 0.00% 130 FICA CONTRIBUTIONS 3,184 3,685 5,242 4,255 5,588 4,208 -1.11% 131 PERA CONTRIBUTIONS 3,989 4,651 5,125 4,171 5,479 4,125 -1.11% 135 HEALTH INSURANCE 3,462 9,000 9,085 $9,450 6,145 $9,900 4.76% 150 WORKER'S COMPENSATION 326 502 525 800 558 800 0.00% TOTAL PERSONNEL SERVICES $63.792 $70,807 $79,221 $74,293 $84,677 $74,033 -0.35% SUPPLIES 200 OFFICESUPPLIES 6,553 4,580 3,738 5,000 2,968 4,500 -10.00% 212 POSTAGE 0 0 1,828 1,000 1,763 1,500 50.00% 250 SALES TAX 0 0 0 0 0 0 0,00% TOTAL SUPPLIES $6,553 $4,580 $5,566 $6,000 $4,731 $6,000 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 2,990 80 3,124 3,500 1,583 3,500 0.00% 305 ADMINISTRATION 0 0 307 350 0 300 -14.29% 308 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 309 MISCELLANEOUS 6,263 1,468 64,587 3,500 16,672 10,000 185.71% 310 CONFERENCE REGISTRATION FEES 235 185 1,616 1,500 45 2.000 33.33% 320 INTERNET CONNECTION 0 0 0 0 0 0 0.00% 322 WEB SITE 1,875 1,967 1,640 10,000 1 2,500 -75.00% 331 MILEAGE 264 305 1,383 400 382 500 25.00% 332 RECORDING SECRETARY 6,057 190 0 1,000 0 500 -50.00% 334 COMPUTER SERVICES 512 8,897 0 6,000 12,893 12,000 100.00% 350 PRINTING - OTHER 0 0 0 0 0 0 0.00% 351 LEGAL NOTICES 654 380 106 700 1,054 1,000 42.86% 352 NEWSLETTER/PUBLIC RELATIONS 1,848 1,783 2,197 3,000 2,002 3,300 10.00% 361 GENERAL LIABILITY INSURANCE 1,384 1,370 1,327 2,500 1,566 2,600 4.00% 363 VEHICLE INSURANCE 79 79 (2) 150 112 150 0.00% 365 PUBLIC OFFICIALS LIABILITY INSURANCE 93 124 124 175 161 200 14.29% 384 RECYCLING COLLECTION 8,903 13,319 11,371 12.000 12,432 14,000 16.67% 434 VLAWMO 0 0 0 0 0 0 0.00% 435 LMC 1,046 778 918 1,200 1,245 1.600 33.33% 436 RCLLG 0 0 0 350 0 0 -100.00% 440 DUES & SUBSCRIPTIONS 300 300 0 350 1,420 350 0.00% 450 CHARITA BLE GAMBLING DISTRIBUTIONS 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $32,503 $31,225 $88,698 $46,675 $51,568 $54.500 16.76% CAPITAL OUTLAY 570 FURNITURE & OFFICE EQUIPMENT 3,709 5,952 45,460 0 13,286 0 0.00% 580 OTHER EQUIPMENT/IMPROVEMENTS 0 27,321 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $3709 $33,273 $45,460 $0 $13,286 $0 0.00% TOTAL CLERK/GENERAL GOVERNMENT $106,557 $139,885 $218,945 $126,968 $154,262 $134,533 5.96% 15 Elections General Fund ACTIVITY DESCRIPTION: The Elections budget funds election activities of the City, which include maintenance of voting and ballot counting equipment and payment of the election service contract with Ramsey County. GOALS: 1. Conduct fair and open elections. BUDGET COMMENTARY: 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 (even years) with and without (odd years) general elections. Election costs remain the same based on past expenditures. BUDGET: ELECTIONS DEPART ENT 41410 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $0 $0 $0 $0 $0 $0 0.00% 105 TEMPORARY EMPLOYEES 0 0 0 0 0 0 0.00% 130 FICA CONTRIBUTIONS 0 0 0 0 0 0 0.00% 160 WORKERS COMP. 0 0 0 0 0 0 0.00% TOTAL PERSONNEL SERVICES $0 $0 $0 $0 $0 $0 0.00% SUPPLIES 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% 212 POSTAGE 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 307 PROFESSIONAL SERVICES 4,664 4,664 4,664 7,000 6,071 7,000 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 331 MILEAGE 0 0 0 0 0 0 0.00% 350 OTHER PRINTING 0 0 0 0 0 0 0.00% 351 LEGAL NOTICES 0 0 0 0 0 0 0.00% Ballot Machine 0 0 0 0 0 0 0.00% 400 REPAIR/MAINTENANCEEQUIPMENT 1,400 880 1,144 2,000 0 2,000 0.00% TOTAL OTHER SERVICES & CHARGES $6,064 $5,544 $5,808 $9,000 $6,071 $9,000 0.00% TOTAL ELECTIONS $6,064 $5,544 $5,808 $9,000 $6,071 $9,000 0.00% 16 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: 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 2026 reflect past expenditure levels. In 2020 the City requested proposals for audit services and the 2026 budget reflects these audit costs. BUDGET: FINANCIAL ADMINISTRATION DEPARTMENT 41500 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES SUPPLIES 200 OFFICE SUPPLIES $0 $0 $0 $0 $0 $0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 301 AUDITING SERVICES 8,000 13,500 14,000 13,000 15,972 17,000 30.77% 329 FINANCIAL SERVICES 33,408 33,327 21,993 36,000 15,094 30,000 -16.67% 330 CREDIT CARD FEES 1,184 847 819 1,100 675 1,100 0.00% 334 COMPUTER SERVICES 1,857 1,949 2,780 2,800 5,594 4,000 42.86% 309 MISCELLANEOUS EXPENSE 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $44.449 $49,623 $39,592 $52,900 $37,335 $52,100 -1.51% TOTAL FINANCIAL ADMINISTRATION $44,449 $49,623 $39,592 $52,900 $37.335 $52,100 -1.51% 17 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 2026 budget is based on contract cost of current legal counsel and anticipated use or need of legal counsel in 2026. BUDGET: LEGAL SERVICES DEPARTMENT 41600 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # 'ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 0.00% 303 PROSECUTION 1,161 1,035 1,167 1,750 735 1,500 -14.29% 304 LEGAL SERVICES 55.724 9,538 10,714 50,000 10.112 36,000 -28.00% 305 LEGAL SERVICES - LAND ISSUES 0 0 0 3,000 0 0 -100.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 317 LEGAL - ANNEXATION 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $56,885 $10,573 $11,881 $54,750 $10,847 $37.500-31.51% TOTAL LEGAL SERVICES $56,885 $10,573 $11,881 $54,750 $10,847 $37,500-31.51% 18 Planning & Zoning General Fund ACTIVITY DESCRIPTION: This department provides long range planning, day to day coordination, and design and management of programs and plans affecting residential, commercial and industrial development. The activities include, but are not limited to, comprehensive planning, zoning administration, design of trails and bikeways, promotion. GOALS: 1. Implementation of comprehensive plan objectives. BUDGET COMMENTARY: Expenditures are based on past expenditures, which result in a 14.46% increase. In 2022 started contracting for planning services resulting in zoning administration costs increasing to $27,000 in 2026. BUDGET: PLANNING & ZONING DEPARTMENT 41910 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 0.00% 308 ADMINISTRATION 0 571 8,175 2,000 0 2,000 0.00% 302 ENGINEERING SERVICES 29,382 33,561 23,691 33,000 48,246 34,000 3.03% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 315 ZONING ADMINISTRATION 8,779 14,371 28,460 15,000 27,011 27,000 80.00% 325 NPDES TRAINING 0 0 53 0 0 0 0.00% 326 NPDES EDUCATION 0 0 0 0 0 0 0.00% 327 MS4 REPORTING 5,000 523 1,398 5,000 400 4.000 -20.00% 332 RECORDING SECRETARY 0 0 0 0 0 0 0.00% 348 COMP. PLAN UPDATE 0 0 0 0 0 0 0.00% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $43,161 $49,026 $61,777 $55,000 $75,657 $67,000 21.82% CAPITAL OUTLAY 570 FURNITURE & OFFICE EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 TOTAL PLANNING & ZONING $43,161 $49,026 $0 $0 $0 $0 0.00% $61,777 $55,000 $75,657 $67,000 21.82% 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. In 2026, the budget includes $10,000 for other improvements and $10,000 for the installation of an irrigation system. BUDGET: HERITAGE HALL DEPARTMENT 41940 12/17/2024 11/30/2025 12116/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 205 CLEANING SUPPLIES $0 $0 $0 $0 $0 $0 0.00% 210 OPERATING SUPPLIES - OTHER 69 0 0 150 15 75 -50.00% 230 BUILDING MATERIALS 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $69 $0 $0 $150 $15 $75 -50.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 7,653 1,000 9,200 10,000 900.00% 309 CONTRACT SERVICES 15,540 12,560 15,696 17,000 39,911 20,000 17.65% 321 TELEPHONE 0 0 0 0 0 0 0.00% 362 PROPERTY INSURANCE 1,371 1,708 2,724 3,500 4,037 4,800 37.14% 381 ELECTRICITY 5,266 5,817 6,269 6,000 5,522 6,200 3.33% 383 GAS 1,853 1,593 1,060 1,800 1,182 1,500 -16.67% 385 WATER/SEWERUTILITIES 890 908 908 1,200 566 1,200 0.00% 400 REPAIRIMAINTENANCE- OTHER 370 470 410 1,000 0 1,000 0.00% 401 REPAIR/MAINTENANCE- BUILDINGS 2,184 79 580 6,000 13,975 5,000 -16.67% TOTAL OTHER SERVICES & CHARGES $27,474 $23,135 $35,300 $37,500 $74.393 $49,700 32.53% CAPITAL OUTLAY 520 BUILDING IMPROVEMENTS 0 0 7,581 10,000 (6,541) 10,000 0.00% 580 OTHER EQUIPMENT/IMPROVEMENTS 0 0 1,499 10,000 0 10,000 0.00% TOTAL CAPITAL OUTLAY $0 $0 $9,080 $20,000 ($6,541) $20,000 0.00% TOTAL HERITAGE HALL $27,543 $23,135 $44,380 $57,650 $67,867 $69,775 21.03% 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: Provide effective law enforcement service to the City. BUDGET COMMENTARY: The 2026 budget is based on the contracted budget amount provided by the City of White Bear Lake's Police Department. In 2024 for the first time the budget included a line item for the annual debt costs on the city's new public safety building. BUDGET: POLICE DEPARTMENT 42100 12/17/2024 11 /30/2025 12/ 16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 305 REGULAR LAW ENFORCEMENT $91,186 $113,184 $122,475 $133,089 $145,189 $139,470 4.79% 306 SPECIAL LAW ENFORCEMENT 0 0 0 0 0 0 0.00% 307 DISPATCH COSTS 0 0 0 0 0 0 0.00% 308 PUBLIC SAFETY FACILITY COSTS 0 0 18,093 14,313 0 14,067 -1.72% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $91,186 $113,184 $140,568 $147,402 $145,189 $153,537 4.16% TOTAL POLICE $91,186 $113,184 $140,568 $147,402 $145,189 $153,537 4.16% 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 2026 budget less an adjustment for 2024 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. This budget also includes $9,191 in debt costs for the city's new public safety building. BUDGET: FIRE DEPARTMENT 42200 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 308 PUBLIC SAFETY FACILITY COSTS $0 $0 $0 $9,346 $0 $9,191 -1.66% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 311 FIRE SERVICE 22,593 26,912 47,914 $35,300 44,297 $35,196 -0.29% 312 FIRE MARSHALLSERVICES 6,747 6,306 7,746 $8,181 4,359 $9,087 11.07% TOTAL OTHER SERVICES & CHARGES $29,340 $33,218 $55,660 $52,827 $48,656 $53,474 1.22% TOTAL FIRE $29,340 $33,218 $55,660 $52,827 $48,656 $53,474 1.22% 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 2026 budget was based on past expenditures and results in no change from 2025. BUDGET ANIMAL CONTROL DEPARTMENT 42300 ACCT. # ACCOUNT DESCRIPTION 12/17/2024 11 /30/2025 12/16/2025 2022 2023 2024 2025 2025 2026 % ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 323 ANIMAL REMOVAL 0 0 129 300 0 300 0.00% 324 ANIMAL ENFORCEMENT 81 116 0 200 0 200 0.00% TOTAL OTHER SERVICES & CHARGES $81 $116 $129 $500 $0 $500 0.00% TOTAL ANIMAL CONTROL $81 $116 $129 $500 $0 $500 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: Building inspections increased to reflect additional building activity estimated in 2026 BUDGET: BUILDING INSPECTIONS DEPARTMENT 42401 12/ 17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PERSONNEL SERVICES 100 WAGES & SALARIES $0 $0 $0 $0 $0 $0 0.00% TEMPORARY EMPLOYEES 0 0 0 0 0 0 0.00% 130 FICA CONTRIBUTIONS 0 0 0 0 0 0 0.00% 131 PERA CONTRIBUTIONS 0 0 0 0 0 0 0.00% 135 HEALTH INSURANCE 0 0 0 0 0 0 0.00% 150 WORKER'S COMPENSATION 0 0 0 0 0 0 0.00% TOTAL PERSONNEL SERVICES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 313 BUILDING INSPECTIONS 4,275 7,220 11,352 8,500 7,822 10,000 17.65% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 316 BUILDING SECRETARY SERVICES 3,265 1,947 0 2,000 0 2,000 0.00% 334 COMPUTER SERVICES 2,520 2,520 0 3,000 0 3,000 0.00% 328 CODE ENFORCEMENT 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $10,060 $11,687 $11.352 $13,500 $7,822 $15.000 11.11% CAPITAL OUTLAY 570 FURNITURE & EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL BUILDING INSPECTIONS $10,060 $11,687 $11,352 r $13,500 $7,822 $15,000 11.11% 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. GOALS: 1. Routine maintenance to assure long life of each street. BUDGET COMMENTARY: Most line items adjusted based on past expenditures. Street maintenance/repair includes a possible seal coat project in 2026. 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 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 211 CHEMICALS $0 $0 $0 $0 $0 $0 0.00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% 224 GRAVEL/STREET MATERIAL 0 0 0 0 0 0 0.00% 225 SALT/SAND 0 0 0 0 0 0 0.00% 226 SIGNS, SIGN REPAIR MATERIALS 0 224 6,625 500 0 500 0.00% 250 SALES TAX 0 0 0 0 0 0 0,00% TOTAL SUPPLIES $0 $224 $6,625 $500 $0 $500 0.00°% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 302 ENGINEERING FEES 5,423 9,148 0 10,000 0 9,000 -10.00% 308 ADMINISTRATION 0 0 0 0 0 0 0.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 327 NPDES - STORMWATER 0 0 0 0 0 0 0.00% 351 LEGAL NOTICES 0 0 0 0 0 0 0.00°% 382 ELECTRICITY - STREET LIGHTS 934 973 1,110 1,200 976 1,350 12.50% 385 ROW MAINTENANCE 0 0 0 500 0 500 0.00% 405 ROA D MA INTENA NCEJREPA IR 3,165 11,806 0 20,000 0 18,000 -10.00% 406 BLVD. TREE TRIMMING 0 5,797 0 8,000 0 8,000 0.00% 433 DUES AND SUBSCRIPTIONS 0 0 100 0 373 0 0.00% TOTAL OTHER SERVICES & CHARGES $9,522 $27,724 $1,210 $39,700 $1,349 $36,850 -7.18% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY TOTAL ROAD MAINTENANCE $0 $0 $0 $0 $0 $0 U.UU/o $9,522 $27,948 $7,835 $40,200 $1,349 $37,350 -7.09% 25 Ice & Snow Removal General Fund ACTIVITY DESCRIPTION: The City's Ice and Snow activity is responsible for the control of ice and snow on City streets. The activity provides control in a safe and cost effective manner, keeping in mind safety, budget, and environmental concerns. The City contracts for this activity. GOALS: 1. Remove snow as quickly as possible to provide all residents with safe access. BUDGET COMMENTARY: The budget for ice and snow control is based on past expenditures. BUDGET: ICE& SNOW REMOVAL DEPARTMENT 43125 ACCT. # ACCOUNT DESCRIPTION 12/17/2024 11 /30/2025 12/16/2025 2022 2023 2024 2025 2025 2026 % ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 225 SALT SAND $5,598 $27 $0 $8,000 $0 $0 -100.00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $5,598 $27 $0 $8,000 $0 $0 -100,00% OTHER SERVICES & CHARGES 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% 400 REPAIR/MAINTENANCE- OTHER 0 0 640 1,000 0 0 -100.00% 404 REPAIR/MAINTENANCE- CONTRACTUAL 7,031 7,465 3,138 14,500 0 24,000 65.52% TOTAL OTHER SERVICES & CHARGES $7,031 $7,465 $3,778 $15,500 $0 $24,000 54.84% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL ICE& SNOW REMOVAL $12,629 $7,492 $3,778 $23,500 $0 $24,000 2.13% 26 Parks Maintenance General Fund ACTIVITY DESCRIPTION: This department provides for all maintenance and upkeep of the City's parks system. Township personnel, through a contract, perform all labor and provide the equipment for maintenance. GOALS: 1. Routine maintenance of parks. BUDGET COMMENTARY: In 2019, a trail was constructed in the Villas of Gem Lake housing development and donated to the City. For 2026, the City is budgeting $5,000 to pay for mowing, plowing and maintenance of the trail and area around the trail and $8,500 for landscaping materials and miscellaneous maintenance items. BUDGET: PARK MAINTENANCE DEPARTMENT 4410 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE SUPPLIES 211 CHEMICALS $0 $0 $0 $0 $0 $0 0.00% 210 OPERATING SUPPLIES - OTHER 0 0 0 0 0 0 0.00% LANDSCAPING MATERIALS 0 0 0 1,000 0 1,000 0.00% 226 SIGNS, SIGN REPAIR MATERIALS 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $0 $0 $1,000 $0 $1,000 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 65 0 0 0 0.00% 404 PARK MAINTENANCE- CONTRACTUAL 3,430 0 3,030 5,000 0 5,000 0.00% 400 REPAIR/MAINTENANCE- OTHER 0 0 0 1,000 0 8,500 750.00% 309 MISCELLANEOUS 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $3,430 $0 $3,095 $6,000 $0 $13,500 125.00% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% 580 OTHER EQUIPMENT/IMPROVEMENTS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY TOTAL PARK MAINTENANCE $0 $0 $0 $0 30 $0 $3,095 $7,000 $0 $0 0.00% $0 $14,500 107.14% 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. In 2020 the City transferred $385,000 in excess fund balance to close out two construction funds and set funds aside for future improvement projects based on the City fund balance policy of maintaining 50% of the next year's operating budget as reserves. In 2026 only $20,000 for future improvement projects is being budgeted. BUDGET OPERATING TRANSFERS DEPARTMENT 4900 ACCT. # ACCOUNT DESCRIPTION 2022 ACTUAL 2023 ACTUAL 2024 ACTUAL 12/ 17/2024 2025 ADOPTED 11 /30/2025 2025 ACTUAL 12/16/2025 2026 ADOPTED % CHANGE 720 TRANSFERS OUT 2007 Capital Improvement Bonds $0 $0 $0 $0 $0 $0 0.00% Improvement Fund - 401 Road Improvements 0 0 0 0 0 0 0.00% EAB Treatment/Prevention 0 0 0 0 0 0 0.00% Building Improvements/Replacement 0 0 0 0 0 0 0.00% Future Improvements 20,000 20,000 20,000 20,000 20,000 20,000 0.00% Sidewalk/Path along County Road E 0 0 0 0 0 0 0.00% Annexation Reserve Account 0 0 0 0 0 0 0.00% City Hall Construction Fund - 402 0 0 0 0 0 0 0.00% Sewer Fund - 601 0 0 0 0 0 0 0.00% TOTAL OPERATING TRANSFERS 20,000 20,000 20,000 20,000 20,000 20,000 0.00% 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. In 2026 $5,000 is budgeted for the purchase and planting of some trees along the trail by the Villas of Gem Lake development. 30 BUDGET: 225 PARK AND PLAYGROUND FUND REVENUE BUDGET 12/17/2024 11/30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE MISCELLANEOUS 33604 GRANTS $0 $0 $0 $0 $0 $0 0.00% 34785 PARK DEDICATION FEES 15,000 0 0 0 0 0 0.00% 36210 INTEREST INCOME (1,884) 2,667 2,464 1,000 913 1,682 68.20% 36200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $13,116 $2,667 $2,464 $1,000 $913 $1,682 68.20% TOTAL REVENUES $13,116 $2,667 $2,464 $1,000 $913 $1,682 68.20% EXPENDITURE BUDGET SUPPLIES 210 OPERATING SUPPLIES - OTHER $0 $0 $0 $0 $0 $0 0.00% 235 LANDSCAPING MATERIALS 0 0 0 0 0 0 0.00% 226 SIGNS & SIGN MATERIALS 0 0 0 0 0 0 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $0 $0 $0 $0 $0 0.00% OTHER SERVICES & CHARGES 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 302 ENGINEERING FEES 0 0 0 0 0 0 0.00% 304 LEGAL FEES 0 0 0 0 0 0 0.00% 300 PROFESSIONAL SERVICES 0 0 0 0 0 0 0.00% 400 REPAIR/MAINTENANCE- OTHER 0 0 0 0 0 0 0.00% 540 EQUIPMENT 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $0 $0 $0 $0 $0 $0 0.00% CAPITAL OUTLAY 510 LAND 0 0 0 0 0 0 0.00% 580 OTHER IMPROVEMENTS 2,896 5,348 1,117 1,000 0 5,000 400.00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $2,896 $5,348 $1,117 $1,000 $0 $5,000 400.00% TOTAL EXPENDITURES $2,896 $5,348 $1,117 $1,000 $0 $5,000 400.00% FUND BALANCE- JANUARY 1 $44,291 $44,291 $41,610 $42,957 ' $42,957 $43.870 EXCESS REVENUE OVER EXPENDITURES $10,220 ($2,681) $1,347 $0 $913 ($3,318) FUND BALANCE- DECEMBER 31 $54.511 $41,610 $42,957 $42,957 $43,870 $40,552 -5.60% FUTURE IMPACTS: The future budget impacts will depend on the type and scope of park and playground improvements. 31 THIS PAGE INTENTIONALLY LEFT BLANK 32 DEBT SERVICE 33 FUNDS DEBT SERVICE FUNDS DESCRIPTION: The Debt Service Funds repay the outstanding debt obligations of the City of Gem Lake. Debt service funds use the modified accrual basis of accounting; however, the cash basis of accounting will be used for budgetary purposes only. The cash basis is used for budgeting to ensure that sufficient cash will be available to make required payments on the City's bonded indebtedness. GOALS: Retire all debt in a timely basis as scheduled. MEASURABLE WORKLOAD DATA: 2023 2024 2025 2026 ACTUAL ACTUAL ACTUAL ESTIMATED Bond Rating Non -Rated Non -Rated Non -Rated Non -Rated Dec. 31 Debt Outstanding (In thousands) $855 $750 $645 $535 Net Debt Per Capita $1,601 $1,415 $1,217 $987 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) $5,329,326 Less: Outstanding Debt Subject to Limit (210,000) Legal Debt Margin as of January 1, 2026 $5,119,326 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. BUDGET: DEBT SERVICE FUNDS SUMMARY REVENUE BUDGET 12/17/2024 11/30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENT TAXES $83,448 $81,268 $78,579 $83.736 $42,188 $83,370 -0.44% 31002 DELINQUENT TAXES 49 703 115 0 553 0 0.00% 31003 FISCAL DISPARITY TAX 2,069 2,111 2,291 0 1,492 2,408 0.00% 31004 PENALTIES & INTEREST 960 0 (47) 0 0 0 0.00% TOTAL PROPERTY TAXES $86,526 $84.082 $80,938 $83,736 $44,233 $85.778 2.44% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 60,203 58,576 56,949 47,000 27,661 43,000 -8.51% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 11 0 208 0 0 0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0 0.00% TOTAL FINES & FORFEITS $60,214 $58,576 $57,157 $47,000 $27,661 $43,000 -8.51% MISCELLANEOUS 36210 INTEREST EARNINGS (4,464) 6,460 6,111 2,300 2,694 4,998 117.30% 39000 MISCELLANEOUS 0 0 0 0 0 0 0.00% 39200 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39300 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS ($4,464) $6,460 $6,111 $2,300 $2,694 $4,998 117.30% TOTAL REVENUES $142,276 $149,118 $144,206 $133,036 $74,588 $133.776 0.56% EXPENDITURE BUDGET CAPITAL OUTLAY 601 BOND PRINCIPAL 105,000 105,000 105,000 105,000 105,000 110,000 4.76% 602 BOND INTEREST 31,659 29,029 26,301 23,476 23,476 20,488 -12.73% 603 FISCAL AGENT FEES 1,900 4.995 850 2,400 4,500 3,000 25.00% 701 MISCELLANEOUS 0 0 0 0 0 0 0.00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $138,559 $139,024 $132,151 $130,876 $132,976 $133,488 2.00% TOTAL EXPENDITURES $138,559 $139.024 $132,151 $130,876 $132,976 $133,488 2.00% FUND BALANCE- JANUARY 1 $232,853 $232,853 $242,947 $255,002 $255,002 $196,614 EXCESS REV ENUE OVER EXPENDITURES $3,717 $10,094 $12,055 $2,160 ($58,388) $288 FUND BA LANICE -DECEMBER31 $236,570 $242,947 $255,002 $257,162 $196.614 $196,902-23.43% 35 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: Pay debt payments on a timely basis as scheduled. MEASURABLE WORKLOAD DATA: 2023 2024 2025 ACTUAL ACTUAL ACTUAL Bond Principal Retired $65,000 $65,000 $65,000 Bond Interest Paid $9,929 $8,401 $6,776 Property Tax Levy Collected $77,408 $75,684 $76,200 DEBT PAYMENT SCHEDULE: JAN. 1 DEBT YEAR DUE OUTSTANDING 2026 $210,000.00 2027 $140,000.00 2028 $70,000.00 PRINCIPAL DUE $70,000.00 $70,000.00 $70,000.00 36 2026 .ESTIMATE $70,000 $4,988 $77,763 INTEREST DUE $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 12/17/2024 11/30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPnON ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENT TAXES $75,984 $74,767 $73,471 $79,711 $40,163 $75,580 -5.18% 31002 DELINQUENTTAXES 45 700 115 0 517 0 0.00% 31003 FISCAL DISPARITIES TAXES 1,885 1,941 2,142 0 1,420 2,183 0.00% 31004 PENALTIES & INTEREST 960 0 (44) 0 0 0 0.00% TOTAL FINES & FORFEfTS $78,874 $77,408 $75,684 $79,711 $42.100 $77.763 -2.44% MISCELLANEOUS 36210 INTEREST EARNINGS 39100 BOND PROCEEDS 39200 TRANSFERS IN (2,900) 0 0 3,848 0 0 3,393 0 0 1,300 0 0 1,462 0 0 2,732 0 0 110.15% 0.00% 0.00% TOTAL MISCELLANEOUS ($2,900) $3,848 $3,393 $1,300 $1,462 $2,732 110.15% TOTAL REVENUES $75,974 $81.256 $79,077 $81,011 $43,562 $80,495 -0.64% EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL $65,000 $65,000 $65,000 $65,000 $65,000 $70,000 7.69% 610 BOND INTEREST 11,359 9,929 8,401 6,776 6,776 4,988 -26.39% 620 FISCAL AGENT FEES 950 2,495 425 1,200 3,500 1,500 25.00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $77,309 $77,424 $73,826 $72,976 $75,276 $76,488 4.81% TOTAL EXPENDITURES $77.309 $77.424 $73,826 $72,976 $75,276 $76.488 4.81% FUND BALANCE- JANUARY 1 $136.134 $136,134 $139,966 $145.217 ' $145,217 $113.503 EXCESS REVENUE OVER EXPENDITURES ($1,335) $3,832 $5,251 $8,035 ($31,714) $4,007 FUND BALANCE -DECEINBER31 $134,799 $139,966 $145,217 $153,252 $113,503 $117,510-23.32% 37 2018 IMPROVEMENT BOND FUND DEPARTMENT: 2018 Improvement Bond SUPERVISOR: Finance Officer FUND #: 306 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: Pay debt payments on a timely basis as scheduled. MEASURABLE WORKLOAD DATA: 2023 ACTUAL Bond Principal Retired $40,000 Bond Interest Paid $19,100 Property Tax Levy Collected $6,674 Special Assessments Collected $58,576 DEBT PAYMENT SCHEDULE: YEAR DUE 2026 2027 2028 2029 2030 2031 2032 2033 2034 JAN. 1 DEBT OUTSTANDING $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 2024 2025 ACTUAL ACTUAL $40,000 $40,000 $17,900 $16,700 $5,254 $4,266 $57,157 $55,322 PRINCIPAL DUE $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 38 2026 ESTIMATE $40,000 $15,500 $8,015 $43,000 INTEREST DUE $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 REVENUE BUDGET 12/17/2024 11 /30/2025 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE PROPERTY TAXES 31001 CURRENT TAXES $7,464 $6,501 $5,108 $4,025 $2,025 $7,790 93.54% 31002 DELINQUENT TAXES 4 3 0 0 36 0 0.00% 31003 FISCAL DISPARITIES TAXES 184 170 149 0 72 225 0.00% 31004 PENALTIES & INTEREST 0 0 (3) 0 0 0 0.00% TOTAL FINES & FORFETIS $7.652 $6,674 $5,254 $4,025 $2,133 $8.015 99.13% SPECIAL ASSESSMENTS 36101 SPECIALASSESSMENTS- CURRENT 60,203 58,576 56,949 47,000 $27,661 43,000 -8.51% 36102 SPECIAL ASSESSMENTS - DELINQUENT 0 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 11 0 208 0 0 0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0 0.00% TOTAL FINES & FORFEITS $60.214 $58.576 $57,157 $47,000 $27,661 $43,000 -8.51% MISCELLANEOUS 36210 INTEREST EARNINGS (1,564) 2.612 2,718 1,000 1,232 2,266 126.60% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS ($1,564) $2,612 $2.718 $1,000 $1,232 $2,266 126.60% TOTAL REVENUES $66,302 $67,862 $65,129 $52.025 $31,026 $53,281 2.41% EXPENDITURE BUDGET CAPITAL OUTLAY 600 BOND PRINCIPAL $40,000 $40,000 $40,000 $40,000 $40,000 $40.000 0.00% 610 BOND INTEREST 20,300 19,100 17.900 16,700 16,700 15,500 -7.19% 620 FISCAL A GENT FEES 950 2,500 425 1,200 1,000 1,500 25.00% 720 TRANSFERS OUT 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $61,250 $61,600 $58,325 $57,900 $57,700 $57,000 -1.55% TOTAL EXPENDITURES $61,250 $61,600 $58,325 $57,900 $57,700 $57,000 -1.55% FUND BALANCE- JANUARY 1 $96.719 $96,719 $102,981 $109,785 r $109,785 $83,111 EXCESS REVENUE OVER EXPENDITURES $5,052 $6,262 $6,804 ($5,875) ($26,674) ($3,719) FUND BALANCE- DECEMBER 31 $101,771 $102,981 $109.785 $103,910 $83.111 $79,392-23.60% 39 THIS PAGE INTENTIONALLY LEFT BLANK 40 CAPITAL IMPROVEMENT FUNDS 41 IMPROVEMENTFUND 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: 1► sym MEASURABLE WORKLOAD DATA: 2022 2023 2024 2025 ACTUAL ACTUAL ACTUAL ESTIMATED Since this fund was closed out, there is no measurable workload data. BUDGET COMMENTARY: The major revenue source in the past was transfers of excess funds from the General Fund to help finance future building improvements and to set funds aside for possible emerald ash bore tree replacement/treatments. The City is budgeting a transfer from the General Fund to the Improvement to help fund future projects. The expenditures in 2021 was to study drainage along Scheuneman Road and in 2022 the City had some storm water improvements along Scheuneman Road and a repair of an embankment collapse. 2023 included some road reconstruction and 2024 some drainage and 2026 includes possible road improvements. 42 BUDGET: 401 IMPROVEMENT FUND REVENUE BUDGET A CCT. # ACCOUNT DESCRIPTION 2022 2023 ACTUAL ACTUAL 12/17/2024 11 /30/2025 12/16/2025 2024 2025 2025 2026 % ACTUAL . ADOPTED ACTUAL ADOPTED CHANGE SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS - CURRENT $38,877 $35,378 $38,878 $25,000 $19,676 $25,000 0.00% 36102 SPECIAL ASSESSMENTS - DELINQUENT 68 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 34 0 33 0 0 0 0.00% 36104 SPECIAL ASSESSMENTS - PREPAID/SNR 0 0 0 0 0 0 0.00% TOTAL SPECIAL ASSESSMENTS $38,979 $35,378 $38,911 $25,000 $19,676 $25,000 0.00% MISCELLANEOUS 36210 INTEREST EARNINGS ($15,880) $18,240 $15,196 $6,500 $5,649 $9,500 46.15% 36200 MISCELLANEOUS 0 3,500 0 0 0 0 0.00% 39100 BOND PROCEEDS 0 0 0 0 0 0 0.00% 39200 TRANSFERS IN Road Improvements 0 0 0 0 0 0 0.00% EAB Treatment/Prevention 0 0 0 0 0 0 0.00% Building Improvements/Replacement 0 0 0 0 0 0 0.00% Future Improvements 20,000 20,000 20,000 20,000 20,000 20,000 0.00% TOTAL MISCELLANEOUS $4.120 $41,740 $35,196 $26,500 $25,649 $29,500 11.32% TOTAL REVENUES $43,099 $77,118 $74,107 $51,500 $45,325 $54,500 5.83% EXPENDITURE BUDGET OTHER SERVICES & CHARGES 302 ENGINEERING FEES 0 0 0 8,000 0 5,000 -37.50% 304 LEGAL FEES 0 0 0 0 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $0 $0 $0 $8,000 $0 $5,000 -37.50% CAPITAL OUTLAY 531 OTHER IMPROVEMENTS 3,413 179,723 0 100.000 0 100.000 0.00% WATER IMPROVEMENTS 0 0 0 0 0 0 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $3,413 $179,723 $0 $100,000 $0 $100,000 0.00% TOTAL EXPENDITURES $3,413 $179,723 $0 $108,000 $0 $105,000 -2.78% FUND BALANCE- JANUARY 1 $313,004 $313,004 $210,399 $284,506 P, $284,506 $329,831 EXCESS REVENUE OVER EXPENDITURES $39,686 ($102,605) $74,107 ($56,500) $45,325 ($50,500) FUND BALANCE- DECEMBER 31 $352,690 $210,399 $284,506 $228,006 $329,831 $279,331 22.51% 43 THIS PAGE INTENTIONALLY LEFT BLANK 44 ENTERPRISE FUNDS 45 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. 46 BUDGET: ENTERPRISE FUND SUMMARY REVENUE BUDGET 12/17/2024 11/30/2026 12/16/2026 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERV CIES 34410 LOCAL CONNECTION CHARGES $4,099 $2,097 $0 $1,000 $14,378 $1,200 20.00% 34500 ENTERPRISE REV ENUES- RESIDENTIAL 50,863 60,447 51,436 48,500 32,081 44,500 -8.25% 34600 ENTERPRISE REV ENUES- COMMERCIAL 31,664 31,453 40,110 34,500 27,532 35,000 1.45% 34640 CERTIFIED SEWER REVENUES 0 0 0 0 0 0 0.00% 34650 PENALTIES & INTEREST 1,646 2,310 385 2,000 1,793 1,550 -22.50% TOTAL CHA RGES FOR SERV ICES $88,272 $96,307 $91,931 $86,000 $75,784 $82,250 -4.36% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36102 DELINQUENT SPECIAL A SSESSMENTS 0 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 0 0 0 0 0 0 0.00% TOTAL SPECIALASSESSMENTS $0 $0 $0 $0 $0 $0 0.00% MISCD_LANEOUS 36200 MISCELLANEOUS 0 0 0 0 0 150,000 0.00% 36210 INTEREST INCOME (15,698) 19,521 18,467 2,700 8,351 15,220 463.70% 39200 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS ($15,698) $19,521 $18,467 $2,700 $8,351 $165,220 6019.26% TOTAL REVENUES $72,574 $115,828 $110,398 $88,700 $84,135 $247,470 179.00% EXPENDITURE BUDGET SUPPLIES 201 OFFICE SUPPLIES 0 0 0 200 0 200 0.00% 210 OPERATING SUPPLIES 0 0 0 0 0 0 0.00% 212 POSTAGE 0 0 0 250 0 250 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $0 $0 $450 $0 $450 0.00% OTHER SERVICES & CHARGES 301 AUDITING & ACCOUNTING SERVICES 5,000 0 0 6,200 6,200 6,500 4.84% 302 ENGINEERING FEES 30,680 0 0 15,000 16,720 105,000 600.00% 318 M.C.ES. CHARGES 42,587 53,492 59,706 51,400 9,915 47,875 -6.86% 319 LOCATES 228 259 149 250 10,217 250 0.00% 329 FINANCIAL SERVICE 0 0 0 1,000 1,000 1,000 0.00% 334 COMPUTER SERV ICES 0 1,342 197 885 885 885 0.00% 400 REPAIR/ MAINTENANCE 0 0 190 5,500 3,281 6,500 18.18% 420 DEPRECIATION 29,535 38,866 31,889 39,500 0 39,500 0.00% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0 0.00% 460 SEWER INSPECTIONS 0 0 0 25,000 0 25,000 0.00% 461 SEWER FLUSHING 0 0 0 23,500 0 20,000 0.00% TOTAL OTHER SERVICES & CHARGES $108,030 $93,959 $92,131 $168,235 $48,218 $252,510 50.09% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% 530 OTHER EQUIPMENT & IMPROVEMENTS 0 0 0 0 34,972 100,000 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $34,972 $100,000 0.00% TOTAL D(PENDITUREBUDGET $108,030 $93,959 $92,131 $168,685 $83,190 $352,960 109.24% FUND BALANCE- JANUARY 1 $446,629 $446,629 $482,109 $507,327 $507,327 $508,272 EXCESS REVENUE OVEREXPENDTTURES ($55,853) ($3,386) ($6,671) ($79,985) $945 ($105,490) DEDUCT INFRASTRUCTIONADDTIONS $0 $0 $0 $0 $0 $0 ADD BACK DEPRECIATION $29,535 $38,866 $31,889 $39,500 $0 $39,500 FUND BALANCE- DECEMBER 31 $420,311 $482,109 $507,327 $466,842 $508,272 $442,282-5.26°% INVESTMENT IN INFRASTRUCTURE $1,267,092 $1,267,092 $1,223,406 $1,186,697 $1,186,697 $1,186,697 ADDITIONS (DELETIONS) ($4,820) ($4,820) ($4,820) $0 $0 $0 DEPRECIATION ($29,535) ($38,866) ($31,889) ($39,500) $0 ($39,500) NET INVESTMENT ININFRASTRURE $1,232,737 $1,223,406 $1,186,697 $1,147.197 $1,186,697 $1,147,197 0.00% 47 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: 2023 2024 2025 2026 ACTUAL ACTUAL ACTUAL ESTIMATED Gals of Sewage Treated (Millions) 16.66 17.47 14.71 13.80 Miles of Sewer Lines Service Connections BUDGET COMMENTARY: The main revenue source is sewer revenues, which are based on the number of sewer connections, past sewer usage and sewer rate. Sewer charges are estimated to generate revenues of $56,500 with the current rate used to estimate 2026 revenues. 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 varied over the past few years, but the cost of treating wastewater has increased. For 2026, the M.C.E.S. Charges have decreased 6.86% to $47,875. Since sewer flows have been varying 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 backups. For 2026, $20,000 is budgeted to flush sewer lines. 48 BUDGET: SEWER OPERATING FUND REVENUE BUDGET 12/17/2024 11 /30/2026 12/16/2025 ACCT. 2022 2023 2024 2025 2025 2026 % # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERV CIES 34410 LOCAL SAC CHARGES $4,099 $0 $0 $1,000 $13,940 $1,000 0.00% 34500 SEWER REVENUES - RESIDENTIAL 24,679 24,528 27,968 24,500 18,794 24,500 0.00% 34600 SEWERREVENUES- COMMERCIAL 31,664 31,369 39,526 31,500 26,077 32,000 1.59% 34640 CERTIFIED SEWER REVENUES 0 0 0 0 0 0 0.00% 34650 PENALTIES & INTEREST 1,500 2,310 335 2,000 1,243 1,500 -25.00% TOTAL CHARGES FOR SERVICES $61,942 $58,207 $67,829 $59,000 $60,054 $59,000 0.00% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 0 0 0 0 0 0 0.00% TOTAL SPECIAL ASSESSMENTS $0 $0 $0 $0 $0 $0 0.00% MISCELLANEOUS 36200 MISCELLANEOUS 0 0 0 0 0 0 0.00% 36210 INTEREST INCOME (17,892) 24,397 21,909 2,700 9,355 17,570 550.74% 39200 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS ($17,892) $24,397 $21,909 $2,700 $9,355 $17,570 550.74% TOTAL REVENUES $44,050 $82,604 $89,738 $61,700 $69,409 $76,570 24.10% EXPENDITURE BUDGET SUPPLIES 201 OFFICE SUPPLIES 0 0 0 200 0 200 0.00% 210 OPERATING SUPPLIES 0 0 0 0 0 0 0.00% 212 POSTAGE 0 0 0 250 0 250 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $0 $0 $450 $0 $450 0.00% OTHER SERVICES & CHARGES 301 AUDITING& ACCOUNTING SERVICES 2,500 0 0 3,100 3,100 3,250 4.84% 302 ENGINEERING FEES 0 0 0 5,000 0 5,000 0.00% 318 M.C.E.S. CHARGES 42,587 53,492 59,706 51,400 9,915 47,875 -6.86% 319 LOCATES 228 259 149 250 10,217 250 0.00% 329 FINANCIAL SERVICE 0 0 0 1,000 1,000 1,000 0.00% 334 COMPUTER SERVICES 0 1,342 197 885 885 885 0.00% 385 WATER/SEWERUTILITIES 3,091 3,132 4,174 5,000 1,677 5,000 0.00% 400 REPAIR/ MAINTENANCE 0 0 0 5,000 3,281 6,000 20,00% 420 DEPRECIATION 16,066 17,319 16,379 17,500 0 17,500 0.00% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0 0.00% 460 SEWER INSPECTIONS 0 0 0 25,000 0 25,000 0.00% 461 SEWER FLUSHING 0 0 0 20,000 0 20,000 0.00% TOTAL OTHER SERVICES & CHARGES $64,472 $75,544 $80,605 $134,135 $30,075 $131,760 -1.77% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% 530 OTHER EQUIPMENT & IMPROVEMENTS 0 0 0 0 0 0 0.00 % 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $0 $0 0.00% TOTAL EXPENDITURE BUDGET $64,472 $75,544 $80,605 $134,585 $30,075 $132,210 -1.76% FUND BALANCE- JANUARY 1 $515,602 $515,602 $539,981 $565,493 $565,493 $604,827 EXCESS REV ENUE OVER EXPENDITURES ($20,422) $7,060 $9,133 ($72,885) $39,334 ($55,640) DEDUCT INFRASTRUCTION ADDTIONS $0 $0 $0 $0 $0 $0 ADD BACK DEPRECIATION $16,066 $17,319 $16,379 $17,500 $0 $17,500 FUND BALANCE -DECEMBER31 $511,246 $539,981 $565,493 $510,108 $604,827 $566,687 11.09% INVESTMENT IN INFRASTRUCTURE $594,669 $594,669 $572,530 $551,331 $551,331 $551,331 ADDITIONS (DELETIONS) ($4,820) ($4,820) ($4,820) $0 $0 $0 DEPRECIATION ($16,066) ($17,319) ($16,379) ($17,500) $0 ($17,500) NET INVESTMENT ININFRASTRURE $573,783 $572,530 $551,331 $533,631 $551,331 $533,831 0.00% mo 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: 2023 2024 2025 2026 ACTUAL ACTUAL ACTUAL ESTIMATED 2,676,800 1,438,920 1,367,920 1,350,000 The main revenue source is water revenues, which are based on the number of gallons used. Water charges are estimated to generate revenues of $27,000 which reflects a change in the rate structure for 2026. Rates are 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. 50 BUDGET: WATER OPERATING FUND REVENUE BUDGET 12/17/2024 11/30/2026 12/16/2026 ACCT. 2022 2023 2024 2025 2025 2026 # ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL ADOPTED ACTUAL ADOPTED CHANGE CHARGES FOR SERV CIES 32246 SALE OF WATER METERS $0 $2,097 $0 $0 $438 $200 0.00% 34410 LOCAL WAC CHARGES 0 5,810 0 $0 31,500 $1,000 0.00% 34500 WATER REVENUES - RESIDENTIAL 26,184 35,919 23,468 24,000 13,287 20,000 -16.67% 34600 WATERREVENUES- COMMERCIAL 0 84 584 3,000 1,455 3,000 0.00% 34640 CERTIFIED SEWER REVENUES 0 0 0 0 0 0 0.00% 34650 PENALTIES & INTEREST 146 0 50 0 550 50 0.00% TOTAL CHARGES FOR SERVICES $26,330 $43,910 $24,102 $27,000 $47,230 $24,250 -10.19% SPECIAL ASSESSMENTS 36101 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36102 DELINQUENT SPECIAL ASSESSMENTS 0 0 0 0 0 0 0.00% 36103 PENALTIES & INTEREST 0 0 0 0 0 0 0.00 TOTAL SPECIAL ASSESSMENTS $0 $0 $0 $0 $0 $0 0.00% MISCELLANEOUS 36200 MISCELLANEOUS 0 0 0 0 0 150,000 0.00% 36210 INTEREST INCOME 2,194 (4,876) (3,442) 0 (1,004) (2,350) 0.00% 39200 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL MISCELLANEOUS $2,194 ($4,876) ($3,442) $0 ($1,004) $147,650 0.00% TOTAL REVENUES $28,524 $39,034 $20,660 $27,000 $46,226 $171,900 536.67% EXPENDITURE BUDGET SUPPLIES 201 OFFICESUPPLIES 0 0 0 0 0 0 0.00% 210 OPERATING SUPPLIES 0 0 0 0 0 0 0.00% 212 POSTAGE 0 0 0 0 0 0 0.00% 215 WATER METER SUPPLIES 0 1,854 0 1,000 248 1,000 0.00% 250 SALES TAX 0 0 0 0 0 0 0.00% TOTAL SUPPLIES $0 $1,854 $0 $1,000 $248 $1,000 0.00% OTHER SERVICES & CHARGES 301 AUDITING& ACCOUNTING SERVICES 2,500 0 0 3,100 3,100 3, 4. % 302 ENGINEERING FEES 30,680 0 0 10,000 16,720 100,000 00 900.00% 318 WATER CHARGES 0 0 0 0 0 0 0.00% 319 LOCATES 0 0 0 0 0 0 0.00% 329 FINANCIAL SERVICE 0 0 0 0 0 0 0.00% 334 COMPUTER SERV ICES 0 0 0 0 0 0 0.00% 385 WATER/SEWERUTILITIES 17,306 26,079 20,764 22,000 7,293 18,000 -18.18% 400 REPAIR/ MAINTENANCE 0 0 190 500 0 500 0.00% 420 DEPRECIATION 13,469 21,547 15,510 22,000 0 22,000 0.00% 433 DUES & SUBSCRIPTIONS 0 0 0 0 0 0 0.00% 460 WATER INSPECTIONS 0 0 0 0 0 0 0.00% 461 HYDRANT FLUSHING 0 0 0 3,500 0 0 0.00% TOTAL OTHER SERVICES & CHARGES $63,955 $47,626 $36,464 $61,100 $27,113 $143,750 135.27% CAPITAL OUTLAY 540 HEAVY MACHINERY/EQUIPMENT 0 0 0 0 0 0 0.00% 530 OTHER EQUIPMENT & IMPROV EMENTS 0 0 0 0 34,972 100,000 0.00% 720 OPERATING TRANSFERS 0 0 0 0 0 0 0.00% TOTAL CAPITAL OUTLAY $0 $0 $0 $0 $34,972 $100,000 0.00% TOTAL EXPENDITURE BUDGET $63,955 $49,480 $36,464 $62,100 $62,333 $244,750 294.12% FUND BALANCE -JANUARY 1 ($68,973) ($68,973) ($57,872) ($58,166) ($58,166) ($74,273) EXCESS REV ENUE OVER EXPENDITURES ($35,431) ($10,446) ($15,804) ($35,100) ($16,107) ($72,850) DEDUCT INFRASTRUCTION ADDTIONS $0 $0 $0 $0 $0 $0 ADD BACK DEPRECIATION $13,469 $21,547 $15,510 $22,000 $0 $22,000 FUND BALANCE- DECEMBER 31 ($90,935) ($57,872) ($58,166) ($71,266) ($74,273) ($125,123) 75.57% INVESTMENT IN INFRASTRUCTURE $672,423 $672,423 $650,876 $635,366 $635,366 $635,366 ADDITIONS (DELETIONS) $0 $0 $0 $0 $0 $0 DEPRECIATION ($13,469) ($21,547) ($15,510) ($22,000) $0 ($22,000) NET INVESTMENT IN INFRASTRURE $658,954 $650,876 $635,366 $613,366 $635,366 $613,366 0.00% 51 THIS PAGE INTENTIONALLY LEFT BLANK 52 APPENDIX 53 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 Cagacit 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 54 and personal property tax statements are mailed out by March 31. One-half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 2% to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1 % penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property owned by a tax-exempt entity, but which is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the county auditor files a publication of legal action and a mailing notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14%. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40%; Township or city - 20%; and school district - 40%. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the renter's credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, county program aid and disparity reduction aid. Debt Limitations All Minnesota municipalities (county, cities, townships and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregation of the principal of the following: Obligations issued for improvements which are payable wholly or partially from the 55 proceeds of special assessments levied upon benefited property. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks systems and public lighting, heating or power systems, and any combination thereof, or for any other public convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provision of law authorizing their issuance. 9. Certain obligations to pay pension fund liabilities. 10. Debt service funds for the payment of principal and interest on obligations other than those described above. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality which issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly know as "Fiscal Disparities" was first implemented for taxes payable in 1975. Forty percent of the increase in commercial -industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven -county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area -wide tax base shall be distributed back to each assessment district. 56 STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS General 2001 Net Tax Capacity 2002-2026 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% $115,000-$600,000 0.80% Over $600,000 1.00% Over $600,000 1.20% Non -Homestead 100% of EMV 1.00% 100% of EMV 1.00% COMMERCIAL / INDUSTRIAL First $150,000 2.40% First $150,000 1.50% Over $150,000 3.40% Over $150,000 2.00% 57 CITY PROPERTY TAXES (3.294% Increase in ESTIMATED market value) S4,080 $4,500 $3.924 S4218 S4.046 $4,000 S3251 $3.227 $3,500 S3,118 S3.364 $3,000 S2.571 $2.421 $2 555 j $2,500 $2.312 l 51.683 $2,000 51,605 $1,665 $1,683 $1,500 1 $1,000 $903 S930 $939 5941 j $500 i $0 $276,917 $461,524 $646,133 $830,744 $1,015,349 TAXABLE MARKET VALUE OACTUAL 2023 (ACTUAL 2024 (ACTUAL 2025 ©ACTUAL 2026 CITY OF OEM LAKE PROPERTY TAX CHANCES CENRAL LEVY DEBT LEVY: GENERAL DEBT LEVY CAPITAL IMPROV. PLAN BONDS 2015 IMPROVEMENT BONDS 2018 IMPROVEMENT BONDS TOTAL DEBT LEVY TOTAL PROPERTY TAX LEVY LESS: FISCAL DISPARITIES NET PROPERTY TAXES CHANCE TAX CAPACITY TAX RAT E 2023 2024 2025 2026 Final Final Final Proposed Levy Levy Levy Levy 568,897 615,527 635,000 630,052 O 0 O 0 75,940 76,269 79,711 77,763 O O O 0 6,384 5,285 4,025 8,015 82,324 81,554 83,736 85,778 651,221 697,081 718,736 715,830 17,894 23,290 23,290 21,025 633,327 673,791 695,446 694,805 16.21 0/. 6.39% 6.79% -0.090/0 1 ,601 ,998 1,761,615 1,809,157 1,884,274 39.534% 38.248% 38.440% 36.874% MEDIAN VALUE HOME 395,800 429,600 443,750 460,750 TAXABLE MEDIAN VALUE HOME 367,018 397,776 437,138 455,668 TAXABLE TAX CAPACITY 3,670 3,978 4,371 4,557 CITY TAXES $1 ,450.95 $1 ,521 _43 $1 ,680.37 $1 ,68022 58 CITY OF GEM LAKE, MN RESOLUTION NO. 2025-36 A RESOLUTION ADOPTING THE FINAL GENERAL FUND BUDGET AND FINAL AMOUNT TO BE RAISED BY PROPERTY TAXATION FOR THE YEAR 2026 WHEREAS, the City Treasurer has presented a TOTAL (Proposed) Budget of $707,357.00 which includes a General Tax Levy of $630,052.00 and a Debt Tax Levy of $85,778.00 for fiscal and calendar year 2026 based upon best estimates of costs for running the City of Gem Lake in 2026; and WHEREAS, the City Council did review, on December 16, 2025, the TOTAL Budget and Tax Levy for 2026 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 2026 Final General Fund Budget of $707,357.00 and the Final Property Tax Levy as follows: General Property Tax Levy $611,435.00 Debt Levy 83,370.00 Fiscal Disparities 21,025.00 Total Property Tax Levy $715,830.00 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 Councilmember Lindner and was supported by Councilmember Johnson and was declared adopted based upon the following vote: NAME ARTIG-SWOMLEY CACIOPPO LINDNER JOHNSON PATRICK Vote I y A Y I Y Y Attest I, Barbara Suciu, the duly qualified City Clerk for the City of Gem Lake, County of Ramsey, State of Minnesota, do hereby certify that the foregoing Resolution is a true and accurate representation of action taken by the City Council of the City of Gem Lake on the date first written. December 16, 2025 Barbara uciu, WCityAAAAW Date 59 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. 91 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. 61 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. 62 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. 63 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): relief for farm property and owner occupied homes. A form of state paid property tax IMPROVEMENT BONDS: Bonds payable from the proceeds of special assessments from properties benefiting from an improvement. IMPROVEMENTS: Buildings, other structures, and other attachments or annexations to land which are intended to remain so attached or annexed, such as sidewalks, trees, drains, and sewers. INFLOW/INFILTRATION (1/1): The term used to describe clean water entering into the sanitary sewer system. INTERFUND TRANSFERS: Amounts transferred from one fund to another. INFRASTRUCTURE: Assets which are immovable and of value only to the governmental unit (i.e. roads, gutters, sewer lines). INTERGOVERNMENTAL REVENUES: Revenues from other governments in the form of grants, entitlement, or shared revenues. INVESTMENTS: Securities held for the production of income in the form of interest. LEVY: (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes special assessments, or service charges imposed by a governmental unit. LICENSES: Revenues received from the sale of business and non -business licenses. LIMITED MARKET VALUE: The amount the market value of a property can increase from one year 64 to 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. 65 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. 66 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. 67 ACRONYMS ACS Animal Control Services ACFR 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 1/1 Inflow/Infiltration LGA Local Government Aid MCES Metropolitan Council Environmental Services MVE Market Value Exclusion MVHC Market Value Homestead Credit SAC Sewer Availability Charge SY Square Yard TIF Tax Increment Financing TVA Tennessee Valley Authority VLAWMO Vadnais Lake Area Water Management Organization WAC Water Availability Charge WBLCD White Bear Lake Conservation District .: