HomeMy WebLinkAbout2022 Budget Book - FINAL2022 Budget
The mission of the City of Lake Elmo is to provide planned, quality public services in a fiscally responsible manner in partnership with our community.
City of Lake Elmo
3800 Laverne Avenue
Lake Elmo, Minnesota 55042
Phone: 651-747-3900
Fax: 651-747-3901
Web: www.lakeelmo.org
CITY OFFICIALS
Charles Cadenhead, Mayor
Dale Dorschner, Councilmember
Lisa McGinn, Councilmember
Jeff Holtz, Councilmember
Katrina Beckstrom, Councilmember
CITY MANAGEMENT TEAM
Kristina Handt, City Administrator
Samuel Magureanu, Finance Director
Julie Johnson, City Clerk
Marty Powers, Public Works Director
Molly Just, Planning Director
John Taylor, Building Official
Dustin Kalis, Fire Chief
3880 Laverne Avenue North • Suite 100 • Lake Elmo • Minnesota 55042 Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
Dear Mayor, City Council, and Taxpayers of Lake Elmo,
I’m pleased to present to you the 2022 budget as approved following the public hearing on
December 7, 2021. This budget makes significant investments in city infrastructure including a new city center/fire station, public works addition, street improvements, water and sewer expansions, and four new
full time positions. While this led to a 42% increase in the city tax levy, Lake Elmo is still able to
boast one of the lowest tax rates of full service communities in Washington County. City operations have weathered the pandemic with minimal impact. The most significant change is in the interest revenue gained on the city’s investments due to lower rates. Development
continues to keep pace with 297 new homes in 2021, and we are planning for 250 more in 2022.
In 2021 there were five residential final plats approved, one for a commercial site and one for a business park site. We expect that activity to continue into 2022 with 77 acres of city property under contract, and strong interest from both the residential and business community in more projects.
In 2022 we are also planning to complete the three remaining expedited watermain extension projects, through MPCA grant funding, to the Torres Pines, Whistling Valley, Parkview Estates and Cardinal Ridge neighborhoods. Water Tower #4 will begin construction this year along Hudson Blvd, and is expected to be online in late 2023.
2022 should also see the completion of phases 5 and 6 of a seven phase effort to bring sanitary sewer to the Old Village area. Along with the sewer, residents and businesses are receiving new watermain and streets.
With the transfer of the Brookfield building from the EDA to the City for a new facility, there is no EDA budget in 2022. However, 2021 was the most active year of the Lake Elmo EDA and, with a guiding work plan, they will remain busy in 2022 seeking feedback from existing businesses and residents.
Thanks to the staff, many in new leadership positions, for building a comprehensive budget to serve the needs of the city. Thanks to the Parks Commission members for their input on capital projects and continuing to prioritize trail connectivity. Lastly, thanks to the City Council for their diligence in reviewing and evaluating options to provide services in the most efficient manner possible.
Respectfully, Kristina Handt
City Administrator
City of Lake Elmo 2022 Budget
2022 BUDGET INDEX
1.Statistical Guide .......................................................................................................................... Section #1
Moody’s Credit Rating Report .........................................................................................................
Washington County Market and Net Tax Capacity Schedule for Taxes Payable in 2022 ..............
Northland Securities Comparison of Key Credit Indicators ............................................................
2. 2022 General Fund Budget Revenue and Expenditure Summary .............................................. Section #2
3. Special Revenue Funds ............................................................................................................... Section #3
4. Debt Service Funds ..................................................................................................................... Section #4
5. Capital Projects Funds ................................................................................................................ Section #5
6. Enterprise Funds ......................................................................................................................... Section #6
7. Growth & Development .............................................................................................................. Section #7
8. Appendix ..................................................................................................................................... Section #8
Organizational Chart as of 12/31/2022
Glossary of Terms
1 Statistical Guide
Each year when a city renews its Capital Improvement Plan, a determination is made on how those projects will be funded. In the case where bonds are needed to provide the funding, a very detailed review of the City’s financial status is
performed by a bond rating company. The City uses the Moody’s rating service for this process and their most recent 2021 report is attached.
As mentioned in their write-up, there are key credit indicators which are renewed to determine a city’s credit worthiness and some of those are presented below. As mentioned by Moody’s the City of Lake Elmo has the following credit strengths:
Wealthy tax base favorably located in the Twin Cities metropolitan area with strong resident incomes
Strong financial operations supported by ample reserves and liquidity
Low pension burden
CITY MISSION STATEMENT & CORE VALUES
Lake Elmo’s “Commitment to the Community,” or mission statement: “The mission of the City of Lake Elmo is to provide planned, quality public services in a fiscally responsible manner in partnership with our community”.
Nine guiding “WE BELIEVE” values that will direct its service, both internally and externally to the community: Lake Elmo’s Core Values of Service are:
Ethics and Integrity – We believe that ethics and integrity are the foundation of public trust and confidence and
that all meaningful relationships are built on these values.
Visionary Leadership and Planning – We believe that the very essence of leadership is to be visionary and
innovative while planning for the future.
Excellence and Quality in the Delivery of Services – We believe that service to our residents is our reason for
being and commit to delivering services in a professional, cost-effective, and efficient manner.
Fiscal Responsibility – We believe that fiscal responsibility and prudent stewardship of public funds, both
short-term and long-term, are essential for citizen confidence in government.
Open and Honest Communication – We believe that open and honest communication is paramount for an
involved citizenry and fosters a positive working environment for employees.
Respect for the Individual – We believe that citizens we serve are to be treated with the utmost respect and deserve the best treatment the City can provide.
Community Engagement – We believe that creating and fostering a community with engaged, active, and informed stakeholders is necessary for a healthy city.
Professionalism – We believe that continuous improvement and innovation is the mark of a professional organization and we are committed to applying this principle to the services we offer and development of employees.
Accountability - We believe in decision-making processes that are based on facts, data, and the prioritization of community interests above the individual.
City of Lake Elmo 2022 Budget
MOODY’S CREDIT RATING REPORT
City of Lake Elmo 2022 Budget
City of Lake Elmo 2022 Budget
WASHINGTON COUNTY MARKET AND NET TAX CAPACITY SCHEDULE FOR TAXES PAYABLE IN
2022
City of Lake Elmo 2022 Budget
NORTHLAND SECURITIES COMPARISON OF KEY CREDIT INDICATORS
City Moody's Credit
Rating S&P Credit Rating 2010 Census
Population
10 yr %
Population
Change
2020 Estimated
Market Value
2020 Taxable Full
Valuation
5 Yr Avg. Annual
% Change (TMV)
Full Value Per
Capita
Per Capita
Income as % of
U.S.
Median Family
Income as % of
U.S.
2020 County
Average
Unemployment
Rate (as of
12/31/20)
General Fund
Balance
GF Balance as %
of GF Revs
Shorewood Aa1 N/A 7,307 -1.3%1,838,064,900$ 1,826,978,273$ 4.6%250,031$ 211.7%195.3%6.2%4,269,389$ 64.9%
Victoria N/A AAA 7,345 82.5%1,733,474,600$ 1,706,929,500$ 8.2%232,393$ 166.2%216.1%4.9%3,167,494$ 56.8%Orono Aaa N/A 7,437 -1.3%3,193,769,900$ 3,182,315,860$ 5.8%427,903$ 311.3%270.8%6.2%4,407,693$ 47.9%
Lake Elmo Aa1 N/A 8,069 17.6%1,971,943,700$ 1,901,067,300$ 11.7%235,601$ 172.3%181.6%5.3%4,314,184$ 78.1%
Little Canada N/A AA+9,773 0.0%1,167,614,000$ 1,125,876,300$ 6.9%115,203$ 108.9%108.8%6.5%3,121,470$ 74.8%
Saint Peter N/A AA-10,946 12.3%650,313,100$ 598,220,200$ 6.0%54,652$ 75.4%87.2%4.5%4,305,606$ 70.1%
Mendota Heights Aa1 AAA 11,071 -3.2%2,320,745,200$ 2,286,444,287$ 5.6%206,526$ 192.3%198.0%5.9%9,352,885$ 96.0%
North Mankato N/A AA 13,394 13.5%1,262,988,400$ 1,185,774,800$ 6.3%88,530$ 108.0%110.8%4.5%3,781,215$ 42.1%
Monticello A1 N/A 13,409 62.2%2,054,313,700$ 1,980,148,000$ 5.0%147,673$ 84.9%101.0%5.3%6,677,250$ 72.3%
Forest Lake Aa2 AA+14,440 27.3%2,422,420,000$ 2,330,489,500$ 7.0%161,391$ 114.6%130.6%5.3%6,119,702$ 62.9%
Stillwater Aa2 N/A 18,225 20.4%2,660,693,000$ 2,591,152,900$ 6.7%142,176$ 139.5%142.0%5.3%5,646,024$ 46.0%
Lino Lakes Aa2 AA+20,216 20.4%2,384,497,900$ 2,294,753,477$ 7.8%113,512$ 127.6%162.1%6.0%6,793,195$ 64.6%
Farmington N/A AA+21,086 70.5%2,208,352,300$ 2,093,214,877$ 6.9%99,270$ 109.5%140.4%5.9%5,871,270$ 48.5%
Rosemount Aa2 AA+21,874 49.6%3,136,853,700$ 3,007,550,443$ 7.1%137,494$ 128.1%155.1%5.9%10,559,040$ 74.3%
Hastings N/A AA 22,172 21.8%2,148,829,600$ 2,028,876,677$ 4.8%91,506$ 103.2%111.7%5.9%5,910,705$ 53.8%Prior Lake Aa2 AA+22,796 43.2%3,861,129,400$ 3,713,161,300$ 7.0%162,887$ 144.9%163.0%5.6%7,903,175$ 58.2%
Chanhassen N/A AAA 22,952 13.0%4,840,341,200$ 4,749,987,200$ 5.8%206,953$ 179.5%195.0%4.9%5,338,069$ 45.3%
Faribault N/A AA 23,352 10.9%1,599,460,800$ 1,474,959,900$ 7.2%63,162$ 71.7%86.1%4.9%8,746,809$ 51.6%Ramsey N/A AA+23,668 27.9%2,856,636,800$ 2,714,649,614$ 7.0%114,697$ 112.9%132.5%6.0%8,880,446$ 72.2%
Chaska N/A AA 23,770 36.2%3,281,441,700$ 3,146,456,700$ 6.7%132,371$ 125.4%140.2%4.9%1,910,861$ 15.2%
White Bear Lake Aa2 AA+23,797 -2.2%2,916,917,900$ 2,802,689,800$ 7.9%117,775$ 111.9%118.1%6.5%4,902,116$ 47.3%Austin Aa2 AA-24,718 6.0%1,703,497,900$ 1,165,986,400$ 6.0%47,172$ 82.0%83.5%4.7%9,113,213$ 55.1%
Shoreview Aa1 AAA 25,043 -3.4%3,647,365,200$ 3,542,781,700$ 7.1%141,468$ 143.2%152.7%6.5%5,582,951$ 47.2%
City
Direct and
Indirect - GO Debt
Ratios Including Revenue
Supported Debt 1
Direct and
Indirect - GO Debt
Ratios Excluding Revenue
Supported Debt 1
Direct Debt
Burden GO Debt
Including Revenue
Supported Debt 1
Direct Debt
Burden GO Debt
Excluding Revenue
Supported Debt) 1
GO Debt
Outstanding
(including revenue-
supported debt) 2
GO Debt
Outstanding
(excluding revenue-
supported debt) 2
Principal
Amortization in
10 years
GO Debt
Including
Revenue
Supported Debt
Per Capita
GO Debt
Excluding
Revenue
Supported Debt
Per Capita
Date of Rating
Report, Last
Review or
Surveillance
Report for
Summary
Date of Official
Statement or
Continuing
Disclosure Report
for Summary
Date of Audit for
Summary
Austin 2.8%2.6%1.1%0.9%19,090,000$ 14,895,000$ 65.9%772$ 603$ 2/28/19 & 10/1/09 12/28/20 12/31/19
Chanhassen 2.4%1.8%0.7%0.1%35,700,000$ 4,970,000$ 68.9%1,555$ 217$ 3/3/20 7/13/20 12/31/19
Chaska 3.6%2.9%1.9%1.2%61,605,000$ 38,315,000$ 73.1%2,592$ 1,612$ 12/9/20 12/8/20 12/31/19
Faribault 2.8%1.4%2.0%0.7%32,045,000$ 10,435,000$ 84.9%1,372$ 447$ 9/21/20 12/29/20 12/31/19Farmington4.4%4.4%0.5%0.5%10,830,000$ 10,175,000$ 100.0%514$ 483$ 3/12/20 12/18/20 12/31/19
Forest Lake 7.0%6.3%1.7%1.0%41,730,000$ 25,385,000$ 64.6%2,890$ 1,758$ 10/23/20 & 6/8/20 7/31/20 12/31/19
Hastings 2.9%2.7%1.1%0.8%22,890,000$ 18,085,000$ 98.4%1,032$ 816$ 8/26/20 10/27/20 12/31/19
Lake Elmo 3.9%2.8%1.7%0.7%34,305,000$ 14,545,000$ 90.5%4,251$ 1,803$ 9/20/19 12/18/20 12/31/19
Lino Lakes 3.6%3.2%0.8%0.5%19,854,485$ 12,044,485$ 79.3%982$ 596$ 6/24/20 & 6/17/20 12/30/20 12/31/18
Little Canada 3.0%2.8%0.2%0.1%2,545,000$ 835,000$ 74.7%260$ 85$ 12/10/20 6/2/20 12/31/19
Mendota Heights 2.0%2.0%0.9%0.9%21,880,000$ 21,880,000$ 80.5%1,976$ 1,976$ 1/25/19 & 10/15/2 10/28/20 12/31/19
Monticello 4.0%3.9%1.5%1.4%31,321,000$ 27,905,000$ 88.2%2,336$ 2,081$ 7/23/20 10/27/20 12/31/19
North Mankato 3.6%3.0%2.1%1.5%26,628,000$ 18,705,000$ 81.0%1,988$ 1,397$ 8/5/20 1027/20 12/31/19
Orono 2.3%2.3%0.2%0.1%5,990,000$ 4,565,000$ 100.0%805$ 614$ 12/5/19 12/30/20 12/31/19
Prior Lake 4.6%4.4%0.9%0.7%35,290,000$ 27,255,000$ 97.0%1,548$ 1,196$ 2/26/20 & 6/17/20 12/18/20 12/31/19Ramsey2.2%2.2%0.7%0.7%19,845,000$ 19,845,000$ 87.7%838$ 838$ 12/4/20 7/22/20 12/31/19
Rosemount 0.9%0.8%0.3%0.2%8,330,000$ 7,060,000$ 98.0%381$ 323$ 2/10/19 & 10/29/2 12/30/20 12/31/19
Saint Peter 11.4%6.5%5.8%0.9%37,820,050$ 5,936,050$ 86.9%3,455$ 542$ 10/19/20 8/12/20 12/31/19
Shoreview 3.7%2.9%1.4%0.6%51,715,000$ 22,715,000$ 67.2%2,065$ 907$ 3/1/19 & 10/21/20 11/24/20 12/31/19
Shorewood 4.1%3.8%0.4%0.2%8,055,000$ 3,030,000$ 49.8%1,102$ 415$ 6/28/19 10/14/20 12/31/19
Stillwater 2.2%2.2%1.0%0.9%25,860,000$ 24,940,000$ 78.9%1,419$ 1,368$ 8/15/19 9/27/20 12/31/19
Victoria 1.4%3.2%1.4%1.3%24,120,000$ 21,830,000$ 79.4%3,284$ 2,972$ 6/26/20 10/27/20 12/31/19
White Bear Lake 4.7%4.7%0.6%0.6%18,910,000$ 18,050,000$ 56.0%795$ 758$ 9/14/20 & 6/12/20 7/16/20 12/31/19
City of Lake Elmo 2022 Budget
2 General Fund Budget Summary
The general fund (a type of governmental fund) is the chief operating fund of the city and is used to account for all
financial resources except those required to be accounted for in another fund. Activities accounted for in the general
fund include general government, public safety, public works, and culture and recreation. An annual appropriated
budget is adopted during the year for the city’s general fund.
BASIS OF ACCOUNTING & BUDGETING
The measurement focus for the general fund is on a current financial resources basis, where the aim of a set of financial
statements is to report the near-term (current) inflows, outflows, and balances of expendable financial resources. The
fund balance is considered a measure of expendable resources.
2019 2020 2021 2021 2022 %
101- General Fund Actual Actual Budget Projected Budget Budget Change
2021 to 2022
General Fund Revenues
Taxes 2,966,392$ 3,537,749$ 3,824,879$ 3,827,998$ 5,013,574$ 31.08%
Licenses and Permits 1,055,038$ 1,425,544$ 1,013,500$ 1,415,207$ 1,048,000$ 3.40%
Intergovernmental 415,882$ 330,010$ 256,172$ 282,044$ 298,396$ 16.48%
Charges for Services 605,366$ 842,512$ 611,050$ 785,360$ 630,200$ 3.13%
Fines and Forfeits 36,696$ 33,584$ 35,000$ 35,000$ 35,000$ 0.00%
Investment Earnings 118,299$ 44,816$ 77,000$ 77,000$ 38,500$ -50.00%
Miscellaneous 316,112$ 291,658$ 246,017$ 228,288$ 184,867$ -24.86%
Total General Fund Revenues 5,513,784$ 6,505,872$ 6,063,618$ 6,650,897$ 7,248,537$ 19.54%
101- General Fund
General Fund Expenditures
Expenses by Department:
Mayor & Council 51,473$ 49,246$ 57,293$ 56,652$ 56,202$ -1.90%
Administration 570,322$ 525,678$ 492,829$ 489,584$ 555,181$ 12.65%
Elections 2,639$ 13,043$ 3,150$ 3,100$ 13,395$ 325.24%
Communications 48,728$ 42,905$ 49,766$ 49,433$ 49,976$ 0.42%
Finance 144,727$ 79,621$ 146,117$ 139,970$ 163,049$ 11.59%
Planning & Zonning 249,467$ 236,344$ 275,408$ 264,698$ 339,900$ 23.42%
Engineering Services 38,482$ 30,000$ 40,000$ 30,000$ 35,000$ -12.50%
City Hall 31,079$ 28,103$ 22,963$ 22,963$ 48,388$ 110.72%
Total General Governmental 1,136,918$ 1,004,940$ 1,087,526$ 1,056,401$ 1,261,091$ 15.96%
Police 702,403$ 761,969$ 921,983$ 921,983$ 948,210$ 2.84%
Prosecution 46,434$ 48,392$ 51,000$ 51,000$ 51,000$ 0.00%
Fire 664,014$ 642,509$ 819,812$ 730,647$ 1,138,275$ 38.85%
Fire Relief 68,975$ 76,608$ 64,000$ 64,000$ 76,608$ 19.70%
Building Inspections 444,607$ 1,098,326$ 926,142$ 1,360,425$ 1,018,285$ 9.95%
Emergency Communication 1,933$ 900$ 3,350$ 3,350$ 20,136$ 501.07%
Animal Control 19,902$ 13,066$ 13,000$ 13,000$ 13,000$ 0.00%
Total Public Safety 1,948,268$ 2,641,770$ 2,799,287$ 3,144,405$ 3,265,515$ 16.66%
Public Works/Streets 1,862,226$ 1,476,101$ 1,611,192$ 1,570,470$ 2,381,179$ 47.79%
Parks & Recreation 263,973$ 310,067$ 274,867$ 268,108$ 323,498$ 17.69%
Total Public Works and Parks 2,126,199$ 1,786,168$ 1,886,059$ 1,838,578$ 2,704,677$ 43.40%
Transfers 742,935$ 1,049,508$ 290,746$ 290,746$ 17,254$ -94.07%
Total Expenses 5,954,319$ 6,482,385$ 6,063,618$ 6,330,130$ 7,248,537$ 19.54%Total Gen Fund Revs. Over/(Under) Expenditures (440,535)$ 23,487$ -$ 320,767$ (0)$ N/A
GENERAL FUND REVENUES
$2,966,392 $1,055,038
$415,882
$605,366
$36,696
$118,299
$316,112
2019 Actual
Taxes Licenses and Permits
Intergovernmental Charges for Services
Fines and Forfeits Interest Earnings
Miscellaneous
$3,824,879 $1,013,500
$256,172
$611,050
$35,000
$77,000
$246,017
2021 Budget
Taxes Licenses and Permits
Intergovernmental Charges for Services
Fines and Forfeits Interest Earnings
Miscellaneous
$3,827,998 $1,415,207
$282,044
$785,360
$35,000 $77,000
$228,288
2021 Projected
Taxes Licenses and Permits Intergovernmental
Charges for Services Fines and Forfeits Interest Earnings
Miscellaneous
$5,013,574
$1,048,000
$298,396
$630,200
$35,000 $38,500
$184,867
2022 Budget
Taxes Licenses and Permits Intergovernmental
Charges for Services Fines and Forfeits Interest Earnings
Miscellaneous
$3,537,749 $1,425,544
$330,010
$842,512
$33,584 $44,816 $291,658
2020 Actual
Taxes Licenses and Permits
Intergovernmental Charges for Services
Fines and Forfeits Interest Earnings
Miscellaneous
City of Lake Elmo 2022 Budget
GENERAL FUND EXPENDITURES
$1,136,918
$1,948,268 $1,862,226
$263,973
$742,935
2019 Actual
General Governmental Public Safety Public Works
Parks & Recreation Transfers
$1,004,940
$2,641,770 $1,476,101
$310,067
$1,049,508
2020 Actual
General Governmental Public Safety Public Works
Parks & Recreation Transfers
$1,087,526
$2,799,287
$1,611,192
$274,867 $290,746
2021 Budget
General Governmental Public Safety Public Works
Parks & Recreation Transfers
$1,056,401
$3,144,405
$1,570,470
$268,108 $290,746
2021 Projected
General Governmental Public Safety Public Works
Parks & Recreation Transfers
$1,261,091
$3,265,515
$2,381,179
$323,498 $17,254
2022 Budget
General Governmental Public Safety Public Works
Parks & Recreation Transfers
3 Special Revenue Funds
Special revenue funds (a type of governmental fund) are used to account for the proceeds of specific revenue sources
(other than major capital projects) that are legally restricted to expenditure for specified purposes. The city presently has three active special revenue funds:
1.Lions Park Sign Program2.ARPA – Used to account for the federal funds received in 2021 due to the Corona Virus Pandemic.3.Economic Development Authority – Used to track the activity relating to the Brookfield Building. The City acquired
the Brookfield building to become part of the New City Center. With the addition of the new city center, this fund isexpected to be closed in 2022.
Annual appropriated budgets are adopted during the year for the city’s special revenue funds as appropriate. There were no budgets adopted for special revenue funds in 2022.
BASIS OF ACCOUNTING & BUDGETING The measurement focus for special revenue funds is on a current financial resources basis, where the aim of a set of financial statements is to report the near-term (current) inflows, outflows, and balances of expendable financial resources. The fund balance is considered a measure of expendable resources.
Special revenue funds use the modified accrual basis of accounting, under which revenues are not recognized until they are measurable and available, and expenditures are recognized in the period in which governments in general normally liquidate the related liability rather than when that liability is first incurred (if earlier).
The basis of budgeting is consistent with accounting principles generally accepted in the United States of America.
LIONS PARK SIGN PROGRAM FUND (207)
The fund was created in 2017 to track revenues generated from signage rentals. The funds generated are restricted to be
spent on the parks maintenance and infrastructure.
ARPA FUND (252)
This fund was created in 2021 to account for the federal funds received due to the corona virus pandemic. There has been minimal activity during 2021. The funds are anticipated to be spent during 2022 and 2023 for sewer infrastructure to the
180 acres of land owned by the city.
EDA/BROOKFIELD BUILDING FUND (221)
The fund was created in 2018 to account for the activity relating to the Brookfield building. The EDA activity relating to the Brookfield building will end in 2022 as the building will become part of the New City Center. Part of this transition included the refunding of the 2018A-EDA Bonds as part of the GO 2021 Bonds. The 2018A Bonds were issued in 2018 for the purpose of acquiring the property by the EDA. The city will discontinue the use of this fund in 2022..
City of Lake Elmo 2022 Budget
4 Debt Service Funds
Debt service funds (a type of governmental fund) are used to account for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The city has eleven debt service funds with outstanding long-
term debt:
2010B CIP Refunding Bond
2011A G.O. Improvement Bonds 2012A G.O. Refunding Bonds (2004) 2012B G.O. Improvement Bonds
2014A G.O. Improvement Bonds 2015A G.O. Improvement Bonds 2016A G.O. Improvement Bonds
2017A G.O. Improvement Bonds 2018A G.O. Equipment Certificates 2019A G.O. Improvement Bonds 2021A G.O. CIP, Refunding, Improvement Bonds
Annual appropriated budgets are not adopted for debt service funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. However, debt service fund budgets are prepared by staff and reviewed by the city council to assist in the city’s overall financial planning.
BASIS OF ACCOUNTING & BUDGETING The measurement focus for debt service funds is on a current financial resources basis, where the aim of a set of financial
statements is to report the near-term (current) inflows, outflows, and balances of expendable financial resources. The fund balance is considered a measure of expendable resources.
Debt service funds use the modified accrual basis of accounting, under which revenues are not recognized until they are measurable and available, and expenditures are recognized in the period in which governments in general normally liquidate the related liability rather than when that liability is first incurred (if earlier). The basis of budgeting is consistent
with accounting principles generally accepted in the United States of America.
Attachment 4-1 presents all current debt activity for the City of Lake Elmo. The actual payments due each year as well as
the remaining outstanding debt at the end of each year are presented by fund.
2010B G.O. CAPITAL IMPROVEMENT PLAN CROSSOVER REFUNDING BONDS
(2004) (318)
BUDGETARY OBJECTIVE
The $1,970,000 2010B G.O. Capital Improvement Plan Crossover Refunding Bonds were issued in 2010 to crossover refund the 2004 G.O. Capital Improvement Plan Bonds on February 1, 2013. By
placing the 2010 refunding bond proceeds and $1,000,000 of unspent 2004 bond proceeds into an escrow account in 2010, $2,845,000 of the 2014 through 2025 maturities of the 2004 bonds were defeased in
2013 through the escrow account.
This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $175,000 $19,841 2023 $180,000 $14,516 2024 $185,000 $8,948 2025 $190,000 $3,040
TOTAL: $730,000 $46,345
• Current Ad Valorem Taxes (31010) to repay the bonds, an annual property tax levy will be levied by the City
from 2022 through 2024 (averaging approximately $206,000). 2011A G.O. IMPROVEMENT BONDS (319)
BUDGETARY OBJECTIVE
In order to finance 2011 street improvements, the 2011 G.O. Improvement Bonds were issued in the amount of $845,000, payable through 2022. To repay the debt, an annual property tax levy will be levied by the City through 2021, averaging approximately $74,000. Additionally, special assessments of approximately 30% of the 2011 street improvements costs are projected to be levied against benefited property owners in 2012 for payments beginning in 2013.
This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
• Current Ad Valorem Taxes (31010) to repay the bonds, an annual property tax levy will be levied by the City
through 2021, averaging approximately $74,000.
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in 2012 for payments beginning in 2013. 2012A Water G.O. REFUNDING BOND (2004A - 320)
BUDGETARY OBJECTIVE
During 2012 the interest rates went to a level where utilizing a crossover advance refunding bond resulted in a large interest savings. An advance refunding requires that the proceeds of the new refunding
bonds be invested in government securities and held in escrow until the call date (2015). The funds in the escrow are then used to pay interest on the new refunding bonds until the call date and then
prepay the principal of the old bonds. Total net savings as a result of restructuring this bond were $455k with a present value of $366k. 2012B G.O. IMPROVEMENT BONDS (321)
BUDGETARY OBJECTIVE In order to finance 2011 street improvements, the 2011 G.O. Improvement Bonds were issued in the amount of $865,000, payable through 2022. To repay the debt, an annual property tax levy will be levied by the City through 2022, averaging approximately $65,000. Additionally, special assessments of approximately 30% of the 2011 street improvements costs are projected to be levied against benefited property owners in 2012 for payments beginning in
2013. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
• Current Ad Valorem Taxes (31010) to repay the bonds, an annual property tax levy will be levied by the City through 2021, averaging approximately $65,000.
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $90,000 $1,035
TOTAL: $90,000 $1,035
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $280,000 $61,544 2023 $300,000 $55,944 2024 $290,000 $49,944 2025 $310,000 $44,144 2026-2030 $1,630,000 $118,182 TOTAL: $2,810,000 $329,758
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $95,000 $2,708
2023 $95,000 $903
TOTAL: $190,000 $3,611
City of Lake Elmo 2022 Budget
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in
2012 for payments beginning in 2013.
2014A G.O. IMPROVEMENT BONDS (323)
To save bonding costs, all necessary 2014 bonding was done through one bonding release. As a result there are three very distinctive components of this bond.
GENERAL FUND BUDGETARY OBJECTIVE
In order to fund the 2014 street project ($1,330k), the 39th Street project street and trail component ($754k) and the purchase of a new fire truck ($715k) a bond was obtained to cover the funding. G.O. Improvement
bonds were issues in the total amount of $6,235,000 payable through 2030. This fund is fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
• Current Ad Valorem Taxes (31010) to repay the bonds, an annual property tax levy will be levied by the City through 2029, averaging approximately $181,000.
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in 2014 for payments beginning in 2015.
WATER BUDGETARY OBJECTIVE
This debt was incurred to fund the Lake Elmo Avenue Water Project. REVENUES & OTHER FINANCING SOURCES
• Special Assessments (36100) – A portion of this project will be assessed to the benefitting property owners. These
assessments are projected to be levied against benefited property owners in 2014 for payments beginning in 2015 and will span 15 years.
• Water Sales (37100) and Water Connection fees (37150) – The balance of the loan payments will be funded through Water fund revenue.
SEWER BUDGETARY OBJECTIVE This debt was incurred to fund the Village Eastern Sewer Line Project
and the 39th Street Sewer Project. REVENUES & OTHER FINANCING SOURCES
• Special Assessments (36100) – A portion of this project will be assessed to the benefitting property owners. These assessments
are projected to be levied against benefited property owners in 2014 for payments beginning in 2015 and will span 15 years.
• Sewer Sales (37200) and Sewer Connection fees (37250) – The balance of the loan payments will be funded through Sewer
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $140,000 $38,036
2023 $140,000 $34,921
2024 $145,000 $31,101
2025-2030 $930,000 $91,092
TOTAL: $1,355,000 $195,150
WATER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $165,000 $45,704
2023 $165,000 $42,033
2024 $170,000 $37,544
2025-2030 $2,105,000 $110,473
TOTAL: $1,625,000 $235,754
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $55,000 $15,026 2023 $55,000 $13,802 2024 $55,000 $12,331 2025-2030 $370,000 $36,053 TOTAL: $535,000 $77,212
2015A G.O. IMPROVEMENT BONDS (324)
To save bonding costs, all necessary 2015 bonding was done through one bonding release. As a result there are three very distinctive components of this bond. GENERAL FUND BUDGETARY OBJECTIVE In order to fund the 2015 street projects ($1,490k), including the 39th
Street project and the EP reconstruction project. G.O. Improvement bonds were issues in the total amount of $2,815,000 payable through 2026. This fund is responsible for the retirement of the general obligation bonds. REVENUES & OTHER FINANCING SOURCES .
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in
2015 for payments beginning in 2016 and will span 10 years. The Eagle Point street reconstruction was 100% assessed. EQUIPMENT BUDGETARY OBJECTIVE This debt was incurred to fund equipment purchases which included a Spray Patcher, a Tahoe for the fire department and new warning sirens for the City.
REVENUES & OTHER FINANCING SOURCES Current Ad Valorem Taxes (31010) to repay the bonds, an annual
property tax levy will be levied by the City through 2023, averaging approximately $21,000. WATER
BUDGETARY OBJECTIVE This debt was incurred to fund the Inwood Booster station project and the increased costs due to a project scope change for the 39th Street
Project. REVENUES & OTHER FINANCING SOURCES
• Special Assessments (36100) – A portion of this project will be assessed to the benefitting property owners. These
assessments are projected to be levied against benefited property owners in 2015 for payments beginning in 2016 and will span 15 years.
• Water Sales (37100) and Water Connection fees (37150) – The balance of the loan payments will be funded through Water fund revenue.
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $145,000 $16,438 2023 $150,000 $13,300 2024 $155,000 $9,869 2025-2026 $325,000 $8,189 TOTAL: $775,000 $47,796
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $20,000 $650 2023 $20,000 $225 TOTAL: $40,000 $875
WATER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $60,000 $16,776
2023 $60,000 $15,501
2024 $60,000 $14,151
2025-2031 $470,000 $50,514
TOTAL: $650,000 $96,942
City of Lake Elmo 2022 Budget
SEWER BUDGETARY OBJECTIVE
This debt was incurred to fund the increased costs due to a scope change in the 39th Street Sewer Project. REVENUES & OTHER FINANCING SOURCES
• Special Assessments (36100) – A portion of this project will be
assessed to the benefitting property owners. These assessments are projected to be levied against benefited property owners in 2013 for payments beginning in 2014 and will span 15 years.
• Sewer Sales (37200) and Sewer Connection fees (37250) – The balance of the loan payments will be funded through Sewer
2016A G.O. IMPROVEMENT BONDS (326)
To save bonding costs, all necessary 2016 bonding was done through one bonding release. As a result there are three very distinctive components of this bond. GENERAL FUND - STREETS BUDGETARY OBJECTIVE In order to fund the 2016 street projects, including the Kirkwood Street project, Stonegate, and Kelvin Ave Street. G.O. Improvement bonds
were issues in the total amount of $1,115,000 payable through 2027. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
• Current Ad Valorem Taxes (31010) to repay the bonds, an annual property tax levy will be levied by the City through 2026, averaging approximately $190,000.
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in 2016 for payments beginning in 2017 and will span 10 years. Total assessments $533,880. GENERAL FUND - DOWNTOWN IMPROVEMENT BUDGETARY OBJECTIVE In order to fund the 2016 Downtown Lake Elmo Avenue Project G.O.
Improvement bonds were issues in the total amount of $1,575,000 payable through 2027. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES .
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in 2016 for payments beginning in 2017 and will span 10 years.
Total assessments $470,394. WATER
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $20,000 $5,100
2023 $20,000 $4,675
2024 $20,000 $4,225
2025-2031 $140,000 $14,500
TOTAL: $280,000 $28,500
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $110,000 $12,800
2023 $115,000 $10,550
2024 $115,000 $8,250
2025-2027 $355,000 $10,750
TOTAL: $695,000 $42,350
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $155,000 $18,050 2023 $160,000 $14,900 2024 $165,000 $11,650 2025-2027 $500,000 $15,100 TOTAL: $980,000 $59,700
WATER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $200,000 $47,100
2023 $205,000 $43,050
2024 $210,000 $38,900
2025-2032 $1,840,000 $150,600
BUDGETARY OBJECTIVE This debt was incurred to fund the Kelvin Avenue Utilities, Inwood Booster Station and Water Tower. G.O. Improvement
bonds were issues in the total amount of $3,225,000 payable through 2032. REVENUES & OTHER FINANCING SOURCES
• Special Assessments (36100) – A portion of this project will be assessed to the benefitting property owners. These assessments are projected to be levied against benefited property owners in 2016 for payments beginning in
2017 and will span 15 years.
• Water Sales (37100) and Water Connection fees (37150) – The balance of the loan payments will be funded
through Water fund revenue. SEWER
BUDGETARY OBJECTIVE This debt was incurred to fund the Lake Elmo Avenue Downtown Project. G.O. Improvement bonds were issues in the total amount of
$860,000 payable through 2032. REVENUES & OTHER FINANCING SOURCES
• Sewer Sales (37200) and Sewer Connection fees (37250) – The balance of the loan payments will be funded through Sewer
• Special Assessments $592,066 (36100) – A portion of this project will be assessed to the benefitting property owners. These assessments are projected to be levied against
benefited property owners in 2016 for payments beginning in 2017 and will span 20 years. STORM WATER
BUDGETARY OBJECTIVE This debt was incurred to fund the Lake Elmo Avenue Downtown Project. G.O. Improvement bonds were issues in the total amount of
$2,770,000 payable through 2032. REVENUES & OTHER FINANCING SOURCES
• Storm Water Sales (37300). The balance of the loan payments will be funded through Storm Water.
2017A G.O. IMPROVEMENT BONDS (327)
To save bonding costs, all necessary 2017 bonding was done through one bonding release. As a result there are three very distinctive components of this bond.
GENERAL FUND - STREETS BUDGETARY OBJECTIVE In order to fund the 2017 street projects – North Tri Lakes, including
the Ideal Avenue CSAH 13, Old Village Phase 3, and Lake Elmo Avenue Downtown Project. G.O. Improvement bonds were issues in the total amount of $4,295,000 payable through 2028. This fund is
responsible for the retirement of the general obligation bonds. REVENUES & OTHER FINANCING SOURCES
• Current Ad Valorem Taxes (31010) to repay the bonds, an annual property tax levy will be levied by the City through 2027, averaging approximately $340,000. .
• Special Assessments (36100) these assessments are projected to be levied against benefited property owners in 2017 for payments beginning in 2018 and will span 10 years. Total assessments $1,733,247.
TOTAL: $2,455,000 $279,650
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $55,000 $12,550
2023 $55,000 $11,450
2024 $55,000 $10,350
2025-2032 $490,000 $40,300
TOTAL: $655,000 $74,650
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $175,000 $40,050
2023 $175,000 $36,950
2024 $180,000 $33,400
2025-2032 $1,580,000 $129,400
TOTAL: $2,110,000 $240,200
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $410,000 $72,751 2023 $425,000 $62,313 2024 $435,000 $51,563 2025-2028 $1,845,000 $93,683 TOTAL: $3,115,000 $280,310
City of Lake Elmo 2022 Budget
GENERAL FUND - EQUIPMENT BUDGETARY OBJECTIVE
In order to fund the 2017 purchase of Dump Truck and Plow Truck G.O. Improvement bonds were issues in the total amount of $270,000 payable through 2027. This fund is responsible for the retirement of the general obligation bonds. WATER BUDGETARY OBJECTIVE This debt was incurred to fund the Old Village Phase 3 and Lake
Elmo Avenue Downtown. G.O. Improvement bonds were issues in the total amount of $1,640,000 payable through 2033.
REVENUES & OTHER FINANCING SOURCES
• Water Sales (37100) and Water Connection fees (37150) –
The balance of the loan payments will be funded through Water fund revenue.
SEWER BUDGETARY OBJECTIVE
This debt was incurred to fund the Ideal Ave CSAH 13, Old Village Phase 3, Hudson Blvd Lift Station, and Lake Elmo Downtown Project. G.O. Improvement bonds were issues in the total amount of $2,685,000
payable through 2033. REVENUES & OTHER FINANCING SOURCES
• Sewer Sales (37200) and Sewer Connection fees (37250) – The balance of the loan payments will be funded through Sewer.
STORM WATER BUDGETARY OBJECTIVE
This debt was incurred to fund the Lake Elmo Avenue Downtown Project. G.O. Improvement bonds were issues in the total amount of $155,000 payable through 2033. REVENUES & OTHER FINANCING SOURCES
• Storm Water Sales (37300). The balance of the loan payments will be funded through Storm Water.
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $30,000 $4,251
2023 $30,000 $3,501
2024 $30,000 $2,751
2025-2027 $95,000 $3,682
TOTAL: $185,000 $14,185
WATER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $100,000 $34,950 2023 $100,000 $32,450 2024 $105,000 $29,888 2025-2033 $1,055,000 $139,111 TOTAL: $1,360,000 $236,399
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $160,000 $57,238
2023 $165,000 $53,175
2024 $170,000 $48,987
2025-2033 $1,730,000 $228,318
TOTAL: $2,225,000 $387,718
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $10,000 $3,201
2023 $10,000 $2,951
2024 $10,000 $2,701
2025-2032 $95,000 $12,656
TOTAL: $125,000 $21,509
2018A G.O. EQUIPMENT CERTIFICATE (330)
GENERAL FUND - CERTIFICATE BUDGETARY OBJECTIVE In order to fund the acquisition of items of capital equipment (Fire Engine and a Dump Truck). G.O. Equipment Certificate was issued in the total amount of $940,000 payable through 2028. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
•Current Ad Valorem Taxes (31010) to repay the bonds, anannual property tax levy will be levied by the City through2028, averaging approximately $125,000.
2019A G.O. IMPROVEMENT BONDS (329)
To save bonding costs, all necessary 2019 bonding was done through one bonding release. As a result there are three very distinctive components of this bond.
GENERAL FUND - STREETS BUDGETARY OBJECTIVE In order to fund the 2019 improvement projects, which include South Tri Lakes and Old Village Phase 4. G.O. Improvement bonds were issues in the total amount of $2,160,000 payable through 2030. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
•Current Ad Valorem Taxes (31010) to repay the bonds, anannual property tax levy will be levied by the City through2029, averaging approximately $200,000.
•Special Assessments (36100) these assessments are projected to be levied against benefited property owners in
2019 for payments beginning in 2020 and will span 15 years. Total assessments $698,752.
GENERAL FUND - EQUIPMENT BUDGETARY OBJECTIVE In order to fund the 2019 purchase of Tender 1 and SCBA G.O. Improvement bonds were issues in the total amount of $700,000 payable through 2029. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES Current Ad Valorem Taxes (31010) to repay the bonds, an annual
property tax levy will be levied by the City through 2029, averaging approximately $95,000.
WATER
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $100,000 $19,036
2023 $100,000 $16,336
2024 $105,000 $13,568
2025-2028 $450,000 $24,567
TOTAL: $755,000 $73,507
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $195,000 $51,775
2023 $200,000 $45,850
2024 $210,000 $39,700
2025-2029 $1,380,000 $103,225
TOTAL: $1,985,000 $240,550
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $70,000 $17,100
2023 $75,000 $14,925
2024 $75,000 $12,675
2025-2029 $415,000 $27,825
TOTAL: $635,000 $72,525
WATER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $20,000 $8,806
2023 $20,000 $8,206
2024 $25,000 $7,531
City of Lake Elmo 2022 Budget
BUDGETARY OBJECTIVE This debt was incurred to fund the Old Village Phase 4. G.O.
Improvement bonds were issues in the total amount of $380,000 payable through 2035.
REVENUES & OTHER FINANCING SOURCES
•Water Sales (37100) and Water Connection fees (37150) – The balance of the loan payments will be funded
through Water fund revenue.
SEWER BUDGETARY OBJECTIVE This debt was incurred to fund the Old Village Phase 4 G.O. Improvement bonds were issues in the total amount of $425,000 payable through 2035.
REVENUES & OTHER FINANCING SOURCES
•Sewer Sales (37200) and Sewer Connection fees (37250) – Thebalance of the loan payments will be funded through Sewer.
STORM WATER BUDGETARY OBJECTIVE This debt was incurred to fund the Old Village Phase 4. G.O. Improvement bonds were issues in the total amount of $390,000
payable through 2035.
REVENUES & OTHER FINANCING SOURCES
•Storm Water Sales (37300). The balance of the loan paymentswill be funded through Storm Water.
2021A G.O. IMPROVEMENT, CIP AND REFUNDING BONDS (331)
To save bonding costs, all necessary 2021 bonding was done through one bonding release. As a result there are three very distinctive components of this bond.
GENERAL FUND - STREETS BUDGETARY OBJECTIVE In order to fund the 2021 improvement projects, which includes Old Village 5 and 6 (Phase I), Heritage Farms, and Tamarack Farms Estates.
G.O. Improvement bonds were issues in the total amount of $4,565,000 payable through 2037. This fund is responsible for the retirement of the general obligation bonds.
REVENUES & OTHER FINANCING SOURCES
•Current Ad Valorem Taxes (31010) to repay the bonds, anannual property tax levy will be levied by the City through 2036, averaging approximately $275,000.
•Special Assessments (36100) these assessments are projected to be levied against benefited property owners in2021 for payments beginning in 2022 and will span 15 years. Total assessments $1,209,850.
2025-2035 $295,000 $38,155
TOTAL: $360,000 $62,698
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $25,000 $9,863 2023 $25,000 $9,113 2024 $25,000 $8,363 2025-2035 $330,000 $42,992
TOTAL: $405,000 $70,331
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $20,000 $9,062
2023 $25,000 $8,387
2024 $25,000 $7,637
2025-2035 $300,000 $38,845
TOTAL: $370,000 $63,931
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $0.00 $71,695
2023 $250,000 $106,550
2024 $260,000 $98,900
2025-2037 $4,055,000 $580,737.50
TOTAL: $4,565,000 $857,882.50
GENERAL FUND – REFUNDING – 2018A EDA BUDGETARY OBJECTIVE
The 2018A EDA/BROOKFIELD BUILDING was refinanced with the 2021A issue due to the city purchasing the building to use for the new city center construction G.O. Refunding bonds were issues in the total amount of $815,000 payable through 2034. This fund is responsible for the retirement of the general obligation bonds. REVENUES & OTHER FINANCING SOURCES Current Ad Valorem Taxes (31010) to repay the bonds, an annual
property tax levy will be levied by the City through 2041. The Levy was combined with the CIP portion of the debt issuance, averaging approximately $75,000.
2013A – REFUNDING – WATER BUDGETARY OBJECTIVE During 2021 the interest rates went to a level where refunding the
bond resulted in a large interest savings. Total net savings as a result of restructuring this bond were $82K with a present value of $79k. Total refinanced amount $570,000.
REVENUES & OTHER FINANCING SOURCES
• Water Sales (37100) and Water Connection fees (37150) – The balance of the loan payments will be funded through Water fund revenue. 2013A – REFUNDING – SEWER
BUDGETARY OBJECTIVE During 2021 the interest rates went to a level where refunding the bond resulted in a large interest savings. Total net savings as a result of
restructuring this bond were $243K with a present value of $236k. Total refinanced amount $1,710,000. REVENUES & OTHER FINANCING SOURCES
• Sewer Sales (37200) and Sewer Connection fees (37250) – The
balance of the loan payments will be funded through Sewer. SEWER BUDGETARY OBJECTIVE This debt was incurred to fund the Old Village 5 and 6 (Phase I), Hamlet on Sunfish Lake, and Heritage Farms. G.O. Improvement bonds were issues in the total amount of $4,030,000 payable through 2037. REVENUES & OTHER FINANCING SOURCES
• Sewer Sales (37200) and Sewer Connection fees (37250) – The balance of the loan payments will be funded through Sewer.
• Special Assessments (36100) these assessments are projected to
be levied against benefited property owners in 2021and 2022 for payments beginning in 2022/2023 and will span 20 years. Total assessments $2,884,900. CIP (City Hall, Fire Station, and Law Enforcement)
DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $50,000 $12,867.50
2023 $55,000 $18,625
2024 $55,000 $16,975
2025-2034 $655,000 $73,625
TOTAL: $815,000 $72,525
WATER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $20,000 $8,806 2023 $20,000 $8,206 2024 $25,000 $7,531 2025-2034 $295,000 $38,155 TOTAL: $360,000 $62,698
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
2022 $0.00 $28,713.75
2023 $155,000 $41,850.00
2024 $140,000 $37,425.00
2025-2034 $1,415,000 $155,837.50
TOTAL: $1,710,000 $263,826.25
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST 2022 $0.00 $63,293.75 2023 $220,000 $94,075.00 2024 $230,000 $87,325.00 2025-2037 $3,580,000 $512,262.50 TOTAL: $4,030,000 $756,956.25
SEWER DEBT PAYMENT SCHEDULE
YEAR PRINCIPAL INTEREST
City of Lake Elmo 2022 Budget
BUDGETARY OBJECTIVE This debt was incurred to fund the construction of the New City Center.
G.O. Improvement bonds were issues in the total amount of $10,295,000 payable through 2042. REVENUES & OTHER FINANCING SOURCES
• Current Ad Valorem Taxes (31010) to repay the bonds, an
annual property tax levy will be levied by the City through 2041, averaging approximately $716,000.
2022 $0.00 $155,020.94
2023 $400,000 $232,493.76
2024 $410,000 $220,343.76
2025-2042 $9,485,000 $1,899,203.30
TOTAL: $10,295,000 $2,507,061.76
5 Capital Projects Funds
Capital projects funds (a type of governmental fund) are used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those to be financed by proprietary funds and trust funds).
The city presently has three active capital projects funds that account for ongoing projects and capital expenditures
relating to parks, vehicles and city facilities (Park Dedication, Vehicle Replacement, and City Facilities Fund).
Additionally the city will create a unique fund for all other capital projects. At the end of 2021 the city had 18 active
capital project funds.
Annual appropriated budgets are not adopted for capital projects funds because effective budgetary control is alternatively
accomplished through the use of project controls. However, capital projects fund budgets along with a five-year capital
improvement plan are prepared by staff and reviewed by the city council to assist in the city’s overall financial planning.
BASIS OF ACCOUNTING & BUDGETING
The measurement focus for capital projects funds is on a current financial resources basis, where the aim of a set of
financial statements is to report the near-term (current) inflows, outflows, and balances of expendable financial resources.
The fund balance is considered a measure of expendable resources.
Capital projects funds use the modified accrual basis of accounting, under which revenues are not recognized until they
are measurable and available, and expenditures are recognized in the period in which governments in general normally
liquidate the related liability rather than when that liability is first incurred (if earlier).
The basis of budgeting is consistent with accounting principles generally accepted in the United States of America.
2022-2026 CIP SUMMARY
Capital Improvement Plan - 2022 - 2026
City of Lake Elmo, Minnesota
PROJECTS BY DEPARTMENT
2022 2026thru
Total2022 2023 2024 2025 2026Department Project # Priority
Building Department
B-002 30,00030,000Inspection Vehcile 2
B-003 30,00030,000Inspection Vehcile 3
B-004 30,00030,000Inspection Vehicle 3
90,00030,000 30,000 30,000Building Department Total
Fire Department
F-012 90,00090,000Brush Truck 2 2
F-014 30,00030,000Rescue Boat & Trailer Replacement 1
F-017 83,00083,000Turnout Gear Replacements 1
F-019 67,00067,000Command Vehicle 2 (2016 Tahoe) 2
F-020 65,50065,500Command Vehicle 3 (2015 Tahoe) 2
F-021 195,000195,000800 MHz Radio Replacement 1
F-022 50,00050,000SCBA Fill Station & Compressor 1
580,500278,000 65,500 170,000 67,000Fire Department Total
Parks and Recreation
PR-009 220,000220,000Central Greenway Regional Trail 3
PR-017 1,000,0001,000,000New or Refurbished Ballfields 1
PR-019 25,00025,000Dog Park 4
PR-020 37,00037,000Utility Vehicile/Trail Groomer 3
PR-021 322,643266,430 56,213Neighborhood Trail Connections 2
PR-022 130,000130,000Pebble Park Playground Replacement 2
PR-023 130,000130,000Demontriville Park Playground Replacement 2
PR-024 75,00075,000Tablyn Park Court Resurfacing 3
PR-025 85,00085,000Pebble Park Courts 3
PR-026 65,00065,000Trail Seal Coat 2
PR-027 25,00025,000Kleis Park Disc Golf 3
2,114,643331,430 586,213 1,122,000 75,000Parks and Recreation Total
Public Works Department
PW-004 185,000185,000Loader 2
PW-006 130,000130,000Tractor 2
PW-019 44,00044,000PickupTruck / plow 4
PW-030 628,152628,152CSAH 15/30th Street Signal 3
PW-031 250,000250,000CSAH 6/Inwood Signal 3
PW-034 1,200,0001,200,00015th Street North (MSA Street) 3
PW-035 525,000525,000UP RR Crossing - Village Parkway 2
PW-036 105,000105,000UP RR Crossing - Private Drive Closure 2
PW-037 262,500262,500UP RR Crossing: Klondike Ave 2
PW-038 10,055,00010,055,0002022 Street Improvements 3
PW-039 6,996,2506,996,2502023 Street Improvements 3
PW-040 4,704,7504,704,7502024 Street Improvements 3
PW-041 5,540,0005,540,0002025 Street Irmprovements 3
Wednesday, January 19, 2022Produced Using the Plan-It Capital Planning Software
Total2022 2023 2024 2025 2026Department Project # Priority
PW-042 5,768,0005,768,0002026 Street Improvements 3
PW-044 85,00085,000Back Hoe 2
PW-048 120,000120,000Mini Loader 2
PW-049 50,00050,000Asphalt Hot Box 2
PW-050 275,000275,000Dump Truck with Plow 1
PW-052 400,000400,000Ideal Ave (CSAH 13) Phase 2 3
PW-054 70,00070,000Skidloader 3
PW-060 41,00041,000Pickup w/plow 3
PW-061 35,00035,000Pickup 3
PW-067 250,000250,000Manning/Hudson Stoplight 2
PW-071 70,00070,0002013 Bobcat T590 Track Skid Steer Replacement 2
PW-072 42,00042,000Pickup truck addition 2
PW-074 4,500,0004,500,000TH36-Lake Elmo Ave (CSAH 17) Imp 3
PW-076 2,500,0002,500,000South Frontage Road (Keats to Lake Elmo Ave) 3
PW-077 206,350206,3505th St Medians 2
45,038,00212,621,002 8,958,250 4,745,750 10,410,000 8,303,000Public Works Department Total
Sewer Department
S-005 1,475,0001,475,000Old Village Sewer Extension Phase 5 3
S-013 95,36022,438 32,922 40,000Sewer Oversizing 3
S-017 575,000575,000Old Village Sewer Extension Phase 7 3
S-019 250,000250,000VAC Truck 2
S-020 640,000540,000 100,000Sewer to 180 Acres 3
S-021 00Low Pressure Sewer to Klondike 5
S-022 00Sewer to Sunfish Ponds 5
S-023 922,000922,000Tapestry Neighborhood Sanitary Sewer Ext 3
S-024 1,900,0001,900,000I-94 Lift Station and Forcemain Upgrade 3
5,857,3602,959,438 707,922 2,190,000 0 0Sewer Department Total
Storm Water Department
SW-001 800,000800,000Phase 2 Regional Drainage Improvements 3
SW-002 500,000500,000Phase 3 Regional Drainage Improvements 3
SW-003 60,00060,000Kramer Lake Floodplain Study 3
1,360,000800,000 560,000Storm Water Department Total
Water Department
W-006 4,110,0004,110,000Elevated Storage Tank #3 1
W-008 375,000375,000Village East Trunk Watermain & PRV 2
W-010 800,000800,000Paint Water Tank at PW 4
W-012 35,00035,000Well #4 Pump - Pull and Rebuild 3
W-013 455,914235,219 40,695 120,000 60,000Watermain Oversizing 3
W-023 200,00075,000 75,000 50,000Water Meter Change Out 1
W-024 300,000300,000Automated Radio Read System 3
W-025 1,040,0001,040,000OV sewer extension phase 6 & 5; water component 3
W-026 270,000270,000OV sewer extension Phase 7; water component 3
W-031 4,186,0004,186,0002022 Street Projects-water component 3
W-032 2,550,6002,550,6002023 Street Projects-water component 3
W-033 1,497,0001,497,0002024 Street Projects-water component 3
W-034 1,820,0001,820,0002025 Street Projects-water component 3
W-035 1,800,0001,800,0002026 Street Projcts-water component 3
W-036 400,000400,00045th Street Watermain Extension 3
W-037 2,700,0002,700,000Well, Pumphouse No. 6 and monitoring well 3
W-038 3,392,0001,392,000 1,000,000 1,000,000Watermain Trunk Watermains 3
W-039 50,00050,000Decommission Water Tower 1 3
Wednesday, January 19, 2022Produced Using the Plan-It Capital Planning Software
Total2022 2023 2024 2025 2026Department Project # Priority
25,981,51410,056,219 3,336,295 3,859,000 3,180,000 5,550,000Water Department Total
GRAND TOTAL 81,022,01926,276,089 14,454,180 12,676,750 13,732,000 13,883,000
Wednesday, January 19, 2022Produced Using the Plan-It Capital Planning Software
Capital Improvement Plan - 2022 - 2026
City of Lake Elmo, Minnesota
PROJECTS BY FUNDING SOURCE
2022 2026thru
TotalSource Project # Priority 2022 2023 2024 2025 2026
Debt Service
PW-030 628,152628,152CSAH 15/30th Street Signal 3
PW-035 25,00025,000UP RR Crossing - Village Parkway 2
PW-036 105,000105,000UP RR Crossing - Private Drive Closure 2
PW-037 262,500262,500UP RR Crossing: Klondike Ave 2
PW-038 4,625,0004,625,0002022 Street Improvements 3
PW-039 3,046,2503,046,2502023 Street Improvements 3
PW-040 2,634,7502,634,7502024 Street Improvements 3
PW-041 2,500,0002,500,0002025 Street Irmprovements 3
PW-042 2,500,0002,500,0002026 Street Improvements 3
PW-052 400,000400,000Ideal Ave (CSAH 13) Phase 2 3
PW-074 4,500,0004,500,000TH36-Lake Elmo Ave (CSAH 17) Imp 3
PW-076 2,500,0002,500,000South Frontage Road (Keats to Lake Elmo Ave) 3
S-005 1,475,0001,475,000Old Village Sewer Extension Phase 5 3
S-017 575,000575,000Old Village Sewer Extension Phase 7 3
S-023 922,000922,000Tapestry Neighborhood Sanitary Sewer Ext 3
SW-001 800,000800,000Phase 2 Regional Drainage Improvements 3
SW-002 500,000500,000Phase 3 Regional Drainage Improvements 3
27,998,6528,442,652 4,421,250 3,134,750 7,000,000 5,000,000Debt Service Total
General Fund
F-017 83,00083,000Turnout Gear Replacements 1
F-021 9,2869,286800 MHz Radio Replacement 1
F-022 50,00050,000SCBA Fill Station & Compressor 1
PW-049 50,00050,000Asphalt Hot Box 2
PW-077 206,350206,3505th St Medians 2
398,636348,636 50,000General Fund Total
Grants/Donation
F-021 185,714185,714800 MHz Radio Replacement 1
PR-017 1,000,0001,000,000New or Refurbished Ballfields 1
PW-035 500,000500,000UP RR Crossing - Village Parkway 2
PW-038 5,430,0005,430,0002022 Street Improvements 3
PW-039 3,950,0003,950,0002023 Street Improvements 3
PW-040 2,070,0002,070,0002024 Street Improvements 3
PW-041 3,040,0003,040,0002025 Street Irmprovements 3
PW-042 3,268,0003,268,0002026 Street Improvements 3
PW-067 250,000250,000Manning/Hudson Stoplight 2
S-020 540,000540,000Sewer to 180 Acres 3
SW-003 60,00060,000Kramer Lake Floodplain Study 3
W-031 3,745,0003,745,0002022 Street Projects-water component 3
W-032 2,280,0002,280,0002023 Street Projects-water component 3
W-033 1,200,0001,200,0002024 Street Projects-water component 3
Wednesday, January 19, 2022Produced Using the Plan-It Capital Planning Software
TotalSource Project # Priority 2022 2023 2024 2025 2026
W-034 1,640,0001,640,0002025 Street Projects-water component 3
W-035 1,620,0001,620,0002026 Street Projcts-water component 3
W-036 400,000400,00045th Street Watermain Extension 3
31,178,71410,400,714 6,880,000 4,330,000 4,680,000 4,888,000Grants/Donation Total
Municipal Sate Aid (MSA)
PW-031 250,000250,000CSAH 6/Inwood Signal 3
PW-034 1,200,0001,200,00015th Street North (MSA Street) 3
1,450,0001,200,000 250,000Municipal Sate Aid (MSA) Total
Park Dedication Fund
PR-009 220,000220,000Central Greenway Regional Trail 3
PR-019 25,00025,000Dog Park 4
PR-021 322,643266,430 56,213Neighborhood Trail Connections 2
PR-022 130,000130,000Pebble Park Playground Replacement 2
PR-023 130,000130,000Demontriville Park Playground Replacement 2
PR-024 75,00075,000Tablyn Park Court Resurfacing 3
PR-025 85,00085,000Pebble Park Courts 3
PR-026 65,00065,000Trail Seal Coat 2
PR-027 25,00025,000Kleis Park Disc Golf 3
1,077,643331,430 586,213 85,000 75,000Park Dedication Fund Total
Sewer Fund
PW-044 17,00017,000Back Hoe 2
S-013 55,36022,438 32,922Sewer Oversizing 3
S-019 175,000175,000VAC Truck 2
S-020 100,000100,000Sewer to 180 Acres 3
S-021 00Low Pressure Sewer to Klondike 5
S-022 00Sewer to Sunfish Ponds 5
S-024 1,900,0001,900,000I-94 Lift Station and Forcemain Upgrade 3
2,247,36022,438 149,922 2,075,000 0 0Sewer Fund Total
Storm Water Fund
PW-044 17,00017,000Back Hoe 2
PW-071 10,00010,0002013 Bobcat T590 Track Skid Steer Replacement 2
S-019 75,00075,000VAC Truck 2
102,00010,000 17,000 75,000Storm Water Fund Total
Street Fund
S-013 40,00040,000Sewer Oversizing 3
40,00040,000Street Fund Total
Vehicle Replacement Fund
B-002 30,00030,000Inspection Vehcile 2
B-003 30,00030,000Inspection Vehcile 3
B-004 30,00030,000Inspection Vehicle 3
Wednesday, January 19, 2022Produced Using the Plan-It Capital Planning Software
TotalSource Project # Priority 2022 2023 2024 2025 2026
F-012 90,00090,000Brush Truck 2 2
F-014 30,00030,000Rescue Boat & Trailer Replacement 1
F-019 67,00067,000Command Vehicle 2 (2016 Tahoe) 2
F-020 65,50065,500Command Vehicle 3 (2015 Tahoe) 2
PR-020 37,00037,000Utility Vehicile/Trail Groomer 3
PW-004 185,000185,000Loader 2
PW-006 130,000130,000Tractor 2
PW-019 44,00044,000PickupTruck / plow 4
PW-044 34,00034,000Back Hoe 2
PW-048 120,000120,000Mini Loader 2
PW-050 275,000275,000Dump Truck with Plow 1
PW-054 70,00070,000Skidloader 3
PW-060 41,00041,000Pickup w/plow 3
PW-061 35,00035,000Pickup 3
PW-071 60,00060,0002013 Bobcat T590 Track Skid Steer Replacement 2
PW-072 42,00042,000Pickup truck addition 2
1,415,500409,000 526,500 228,000 187,000 65,000Vehicle Replacement Fund Total
Water Fund
PW-044 17,00017,000Back Hoe 2
W-006 4,110,0004,110,000Elevated Storage Tank #3 1
W-008 375,000375,000Village East Trunk Watermain & PRV 2
W-010 800,000800,000Paint Water Tank at PW 4
W-012 35,00035,000Well #4 Pump - Pull and Rebuild 3
W-013 455,914235,219 40,695 120,000 60,000Watermain Oversizing 3
W-023 200,00075,000 75,000 50,000Water Meter Change Out 1
W-024 300,000300,000Automated Radio Read System 3
W-025 1,040,0001,040,000OV sewer extension phase 6 & 5; water component 3
W-026 270,000270,000OV sewer extension Phase 7; water component 3
W-031 441,000441,0002022 Street Projects-water component 3
W-032 270,600270,6002023 Street Projects-water component 3
W-033 297,000297,0002024 Street Projects-water component 3
W-034 180,000180,0002025 Street Projects-water component 3
W-035 180,000180,0002026 Street Projcts-water component 3
W-037 2,700,0002,700,000Well, Pumphouse No. 6 and monitoring well 3
W-038 3,392,0001,392,000 1,000,000 1,000,000Watermain Trunk Watermains 3
W-039 50,00050,000Decommission Water Tower 1 3
15,113,5146,311,219 673,295 2,659,000 1,540,000 3,930,000Water Fund Total
81,022,01926,276,089 14,454,180 12,676,750 13,732,000 13,883,000GRAND TOTAL
Wednesday, January 19, 2022Produced Using the Plan-It Capital Planning Software
City of Lake Elmo 2022 Budget
6 Enterprise Funds
Enterprise funds (a type of proprietary fund) are used to report an activity for which a fee is charged to external users for
goods or services. Enterprise funds account for operations financed and operated in a manner similar to private business
enterprises. The intent of the governing body is that the costs of providing goods or services on a continuing basis be
financed or recovered primarily through user charges. At the end of 2021, all enterprise funds had a positive cash flow.
The city presently has three enterprise funds:
1. Water
2. Sewer
3. Surface Water
Annual appropriated budgets are not adopted for enterprise funds, but budgets are prepared by staff and reviewed by the
city council to assist in the city’s overall financial planning.
BASIS OF ACCOUNTING & BUDGETING
Enterprise funds are accounted for on the economic resources measurement focus, where the aim of a set of financial
statements is to report all inflows, outflows, and balances affecting or reflecting an entity’s net assets.
All assets and all liabilities (whether current or non-current) associated with an enterprise fund’s activity are included on
the balance sheet. Transactions that improve or diminish the economic position of the fund are reported as revenues or
expenses. Depreciation, using the straight-line method, is charged against all exhaustible capital assets as an expense
against operations.
Enterprise funds are accounted for using the accrual basis of accounting, which recognizes the financial effect of
transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows.
The basis of budgeting is consistent with accounting principles generally accepted in the United States of America.
ENTERPRISE FUNDS BUDGET SUMMARY - WATER
2019 2020 2021 2021 2022 %
601 - Water Fund Actual Actual Budget Projected Budget Budget Change
2021 to 2022
Water Fund Revenues
Special Assessments -$ 762$ 10,740$ -$ -$ -100.00%
Delinquent Special Assessments -$ (675)$ -$ -$ -$ #DIV/0!
Special Assessments Penalties & Interest 96$ 1$ -$ -$ -$ #DIV/0!
Smart Controller Pilot Program 875$ (3,375)$ -$ -$ -$ #DIV/0!
Interest on Investments 183,387$ 128,678$ 39,928$ 65,379$ 32,689$ -18.13%
Interest on Assessments 11,872$ 10,950$ -$ -$ -$ #DIV/0!
Rent 10,010$ 26,000$ 26,000$ 16,000$ -$ -100.00%
Water Sales 849,564$ 1,046,893$ 1,029,177$ -$ 1,147,441$ 11.49%
Bulk Water 1,394$ 3,381$ 1,000$ 2,000$ 2,000$ 100.00%
Water Lat Benefit Fee 5,800$ 5,800$ -$ -$ -$ #DIV/0!
Water Access Revenue 475,000$ 1,205,000$ 1,617,000$ 1,437,000$ 1,104,000$ -31.73%
Water Connections - Municipal 500,900$ 522,000$ 451,000$ 416,000$ 456,000$ 1.11%
Penalties -$ 10,830$ -$ -$ -$ #DIV/0!
Meter Sales 97,342$ 155,831$ 95,000$ 146,937$ 130,600$ 37.47%
Total Water Fund Revenues 2,136,239$ 3,112,076$ 3,269,845$ 2,083,316$ 2,872,730$ -12.14%
Water Fund Expenses
Personnel 215,380$ 294,891$ 328,529$ 315,065$ 446,479$ 35.90%
Materials and Supplies 119,922$ 184,259$ 196,650$ 199,782$ 251,800$ 28.04%
Charges and Services 1,851,273$ 240,617$ 296,500$ 322,024$ 366,850$ 23.73%
Capital Outlay *- - 658,844 658,844 6,236,219 846.54%
Miscellaneous and Non-operating **272,402$ 245,743$ 1,044,402$ 1,044,402$ 1,117,572$ 7.01%
Total Water Fund Expenses 2,458,977$ 965,511$ 2,524,925$ 2,540,117$ 8,418,920$ 233.43%
Total Water Fund Revs. Over/(Under) Expenses (322,738)$ 2,146,566$ 744,920$ (456,801)$ (5,546,190)$ -844.53%
City of Lake Elmo 2022 Budget
ENTERPRISE FUNDS BUDGET SUMMARY - SEWER
2019 2020 2021 2021 2022 %
602 - Sewer Fund Actual Actual Budget Projected Budget Budget Change
2021 to 2022
Sewer Fund Revenues
Special Assessments -$ -$ 162,570$ 162,570$ -$ -100.00%
Delinquent Special Assessments -$ -$ -$ -$ -$ #DIV/0!
Special Assessments Penalties & Interest 624$ 1,710$ -$ -$ -$ #DIV/0!
Prepaid Special Assessments -$ -$ -$ -$ -$ #DIV/0!
Miscellaneous Water -$ 58,350$ -$ -$ -$ #DIV/0!
Interest on Investments 190,342$ 142,328$ 39,812$ 73,667$ 36,834$ -7.48%
Interest on Assessments 109,320$ 91,772$ -$ -$ -$ #DIV/0!
Penalties -$ 1,911$ -$ -$ -$ #DIV/0!
Sewer Sales 299,779$ 354,947$ 466,378$ 466,378$ 544,013$ 16.65%
SAC Early Pay Discount/Revenue 5,308$ 17,375$ 7,500$ 8,529$ 8,500$ 13.33%
Sewer Lat Benefit Fee 11,000$ 48,800$ -$ -$ -$ #DIV/0!
Sewer Connecton Fee Revenue (SAC)505,732$ 1,256,997$ 1,359,000$ 1,359,000$ 727,500$ -46.47%
Sewer Connection Fees Regional -$ -$ -$ -$ -$ #DIV/0!
Sewer Connection Fees Municipal 510,001$ 533,500$ 389,000$ 389,000$ 367,000$ -5.66%
1,632,106$ 2,507,689$ 2,424,260$ 2,459,144$ 1,683,847$ -30.54%
Sewer Fund Expenses
Personnel 86,545$ 121,205$ 137,580$ 124,538$ 196,533$ 42.85%
Materials and Supplies 11,765$ 19,874$ 17,250$ 14,788$ 23,250$ 34.78%
Charges and Services 283,878$ 352,150$ 409,072$ 397,533$ 573,146$ 40.11%
Capital Outlay *-$ -$ 275,760$ -$ 22,438$ -91.86%
Miscellaneous and Non-operating **168,140$ 165,996$ 640,822$ 640,322$ 637,019$ -0.59%
Total Sewer Fund Expenses 550,327$ 659,225$ 1,480,484$ 1,177,181$ 1,452,386$ -1.90%
Total Sewer Fund Revs. Over/(Under) Expenses 1,081,779$ 1,848,465$ 943,776$ 1,281,963$ 231,460$ -75.48%
ENTERPRISE FUNDS BUDGET SUMMARY – STORM WATER
2019 2020 2021 2021 2022 %
603 - Storm Water Fund Actual Actual Budget Projected Budget Budget Change
2021 to 2022
Storm Water Fund Revenues
Special Assessments -$ 25,578$ - - - #DIV/0!
Delinquent Special Assessments -$ -$ - - - #DIV/0!
Special Assessment Penalties/Interest 241$ -$ - - - #DIV/0!
Interest on Investment 37,479$ 15,344$ 4,574 8,925 4,463 -2.44%
Penalties -$ 8,350$ - - - #DIV/0!
Surface Water Utility Sales 344,211$ 314,959$ 385,155 385,155 464,080 20.49%
SW Review Fee Revenue 35,545$ 46,380$ 35,000 38,000 39,375 12.50%
Total Storm Water Fund Revenues 417,475$ 410,611$ 424,729$ 432,080$ 507,918$ 19.59%
Storm Water Fund Expenses
Personnel 47,007$ 64,557$ 72,265$ 62,026$ 116,673$ 61.45%
Materials and Supplies 6,220$ 7,715$ 10,800$ 10,250$ 10,850$ 0.46%
Charges and Services 77,230$ 89,736$ 107,616$ 95,384$ 108,828$ 1.13%
Capital Outlay *-$ -$ -$ 24,185$ -$ #DIV/0!
Miscellaneous and Non-operating **48,861$ 54,098$ 259,771$ 259,771$ 262,713$ 1.13%
Total Storm Water Fund Expenses 179,319$ 216,107$ 450,452$ 451,616$ 499,064$ 10.79%
Total Storm Water Fund Revs. Over/(Under) Expenses 238,157$ 194,505$ (25,723)$ (19,536)$ 8,854$ -134.42%
** It includes Bond Principal payments and are included for budgeting purposes only. Principal Bond payments reduce bond payable liabilities and are
adjusted at yer end.
* Capital Outlay Expenditures are presented for bugeting purposes only. Capital Expenditures are capitalized at year resulting in an increase in net assets.
City of Lake Elmo 2022 Budget
7 Growth and Development
As part of the current growth initiative the Lake Elmo City Council has adopted the following growth philosophy:
• 100% Developer Paid Infrastructure Improvements
• Area Wide Assessments / 429 Projects;
• Irrevocable Letter of Credit with a total project cost face value / debt service draws;
• Comprehensive Escrow Agreements for 100% Cost Recovery;
• Strict Adherence to Comprehensive Plan / “No Poaching Strategy”
FUTURE LAND USE
8 Appendix
City of Lake Elmo 2022 Budget
GLOSSARY OF TERMS
ACCOUNTING SYSTEM: The total set of records
and procedures which are used to record, classify, and
report information on the financial status and operations
of an entity.
ACCRUAL BASIS OF ACCOUNTING: Method of
accounting that recognizes the financial effect of
transactions, events, and interfund activities when they
occur, regardless of the timing of related cash flows.
AD VALOREM TAX: A tax based on value, such as
the property tax.
AGENCY FUNDS: One of four types of fiduciary
funds. Agency funds are used to report resources held
by the reporting government in a purely custodial
capacity (assets equal liabilities). Agency funds
typically involve only the receipt, temporary investment,
and remittance of fiduciary resources to individuals,
private organizations, or other governments.
APPROPRIATION: A legal authorization granted by
a legislative body to make expenditures and incur
obligations, limited by the amount and time in which it
may be expended.
AUDIT: A systematic collection of the sufficient,
competent evidential matter needed to attest to the
fairness of management’s assertions in the financial
statements or to evaluate whether management has
efficiently and effectively carried out its responsibilities.
BASIS OF ACCOUNTING: Timing of recognition for
financial reporting purposes (i.e., when the effects of
transactions or events should be recognized in financial
statements).
BUDGET: A financial operating plan showing
proposed expenditures for a given period and the
proposed means of financing them (also known as the
Operating Budget).
BUDGET DOCUMENT: The official written
statement prepared by the administration which presents
the proposed budget to the legislative body.
BUSINESS-TYPE ACTIVITIES: One of two classes
of activities reported in the government-wide financial
statements. Business-type activities are financed in
whole or in part by fees charged to external parties for
goods or services. These activities are usually reported
in enterprise funds.
CAPITAL ASSETS: Land, improvements to land,
easements, buildings, building improvements, vehicles,
machinery, equipment, works of art and historical
treasures, infrastructure, and all other tangible or
intangible assets that are used in operations and that
have initial useful lives extending beyond a single
reporting period.
CAPITAL IMPROVEMENT PROGRAM: A plan of
proposed capital expenditures and the means of
financing them. The capital budget is enacted as part of
the complete annual budget.
CAPITAL PROJECTS FUNDS: Fund type used to
account for financial resources to be used for the
acquisition or construction of major capital facilities
(other than those to be financed by proprietary funds and
trust funds).
CHARGES FOR SERVICES: Charges for current
services rendered.
CURRENT FINANCIAL RESOURCES
MEASUREMENT FOCUS: Measurement focus
where the aim of a set of financial statements is to report
the near-term (current) inflows, outflows, and balances
of expendable financial resources. The current financial
resources measurement focus is unique to accounting
and financial reporting for state and local governments
and is used solely for reporting the financial position and
results of operations of governmental funds.
DEBT SERVICE: Payment of interest and repayment
of principal to holders of a government’s debt
instruments.
DEBT SERVICE FUNDS: Governmental fund type
used to account for the accumulation of resources for,
and the payment of, general long-term debt principal and
interest.
DEPRECIATION: The portion of the cost of a capital
asset charged as an expense during a particular period,
prorated over the estimated useful life of the asset.
ECONOMIC RESOURCES MEASUREMENT
FOCUS: Measurement focus where the aim of a set of
financial statements is to report all inflows, outflows,
and balances affecting or reflecting an entity’s net assets.
The economic resources measurement focus is used for
proprietary and trust funds, as well as for government-
wide financial reporting. It is also used by business
enterprises and nonprofit organizations in the private
sector.
ENTERPRISE FUNDS: Proprietary fund type used to
report an activity for which a fee is charged to external
users for goods or services.
EXPENDITURES: Under the current financial
resources measurement focus, decreases in net financial
resources not properly classified as other financing uses.
FIDUCIARY FUNDS: Funds used to report assets held
in a trustee or agency capacity for others and which
therefore cannot be used to support the government’s
own programs. The fiduciary fund category includes
pension (and other employee benefit) trust funds,
investment trust funds, private-purpose trust funds, and
agency funds.
FINES: Revenues from penalties imposed for violation
of laws or regulations.
FISCAL DISPARITIES: A Minnesota law which
provides for the pooling of 40 percent of all new
commercial and industrial property valuation in the
seven county metropolitan area which is then
redistributed to taxing jurisdictions according to specific
criteria.
FUND: 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 charges therein,
that are segregated for the purpose of carrying on
specific activities or attaining certain objectives in
accordance with special regulations, restrictions, or
limitations.
FUND BALANCE: Difference between assets and
liabilities reported in a governmental fund.
FUND FINANCIAL STATEMENTS: Basic financial
statements presented on the basis of funds, in contrast to
government-wide financial statements.
FUND TYPE: One of eleven classifications into which
all individual funds can be categorized. Governmental
fund types include the general fund, special revenue
funds, debt service funds, capital projects funds, and
permanent funds. Proprietary fund types include
enterprise funds and internal service funds. Fiduciary
fund types include pension (and other employee benefit)
trust funds, investment trust funds, private-purpose trust
funds, and agency funds.
GENERAL FUND: One of five governmental fund
types. The general fund typically serves as the chief
operating fund of a government. The general fund is
used to account for all financial resources except those
required to be accounted for in another fund.
GENERAL OBLIGATION BONDS: When a
government pledges its full faith and credit to the
repayment of the bonds it issues, then those bonds are
general obligation (G.O.) bonds.
GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES (GAAP): Conventions, rules, and
City of Lake Elmo 2022 Budget
procedures that serve as the norm for the fair
presentation of financial statements.
GENERALLY ACCEPTED AUDITING
STANDARDS (GAAS): Rules and procedures that
govern the conduct of a financial audit.
GOVERNMENTAL ACCOUNTING STANDARDS
BOARD (GASB): Ultimate authoritative accounting
and financial reporting standard-setting body for state
and local governments. The GASB was established in
June 1984 to replace the NCGA.
GOVERNMENTAL ACTIVITIES: Activities
generally financed through taxes, intergovernmental
revenues, and other nonexchange revenues. These
activities are usually reported in governmental funds and
internal service funds.
GOVERNMENTAL ENTITY: For accounting and
financial reporting purposes, an entity subject to the
hierarchy of GAAP applicable to state and local
governmental units.
GOVERNMENTAL FUNDS: Funds generally used to
account for tax-supported activities. There are five
different types of governmental funds: the general fund,
special revenue funds, debt service funds, capital
projects funds, and permanent funds.
GOVERNMENT-WIDE FINANCIAL
STATEMENTS: Financial statements that incorporate
all of a government’s governmental and business-type
activities, as well as its nonfiduciary component units.
There are two basic government-wide financial
statements: the statement of net assets and the statement
of activities.
GRANT: A contribution of assets by one governmental
unit or other organization to another. Grants are usually
made for specified purposes.
INFRASTRUCTURE: Long-lived capital assets that
normally are stationary in nature and normally can be
preserved for a significantly greater number of years
than most capital assets. Examples of infrastructure
assets include roads, bridges, tunnels, drainage systems,
water and sewer systems, dams, and lighting systems.
INTERFUND TRANSFERS: Flows of assets (such as
cash or goods) between funds and blended component
units of the primary government for a price
approximating their external exchange value.
INTERGOVERNMENTAL REVENUES: Revenues
from other governments in the form of grants,
entitlements, or shared revenues.
INTERNAL SERVICE FUNDS: Proprietary fund
type that may be used to report any activity that provides
goods or services to other funds, departments, or
agencies of the primary government and its component
units, or to other governments, on a cost-reimbursement
basis.
LICENSES: Revenues received from the sale of
business and non-business licenses.
LOCAL GOVERNMENT AID (LGA):
Intergovernmental revenue from the state to
municipalities to help fund general expenditures.
MEASUREMENT FOCUS: Types of balances (and
related changes) reported in a given set of financial
statements (i.e., economic resources, current financial
resources, assets and liabilities resulting from cash
transactions).
MODIFIED ACCRUAL BASIS OF ACCOUNTING:
Basis of accounting used in conjunction with the current
financial resources measurement focus that modifies the
accrual basis of accounting in two important ways 1)
revenues are not recognized until they are measurable
and available, and 2) expenditures are recognized in the
period in which governments in general normally
liquidate the related liability rather than when that
liability is first incurred (if earlier).
NET ASSETS: The equity associated with general
government assets and liabilities.
OTHER FINANCING SOURCES: Increase in current
financial resources that is reported separately from
revenues to avoid distorting revenue trends. The use of
the other financing sources category is limited to items
so classified by GAAP (including general long-term debt
proceeds, proceeds from the sale of capital assets, and
operating transfers in).
OTHER FINANCING USES: Decrease in current
financial resources that is reported separately from
expenditures to avoid distorting expenditure trends. The
use of the other financing uses category is limited to
items so classified by GAAP (including operating
transfers out).
PROPRIETARY FUNDS: Funds that focus on the
determination of operating income, changes in net assets
(or cost recovery), financial position, and cash flows.
There are two different types of proprietary funds:
enterprise funds and internal service funds.
RESERVED FUND BALANCE: Portion of a
governmental fund’s net assets that is not available for
appropriation.
RESTRICTED NET ASSETS: Component of net
assets calculated by reducing the carrying value of
restricted assets by amounts repayable from those assets,
excluding capital-related debt.
REVENUES: Under the current financial resources
measurement focus, increases in net financial resources
not properly classified as other financing sources.
SPECIAL ASSESSMENT: Compulsory levy made
against certain properties to defray all or part of the cost
of a specific capital improvement or service deemed to
benefit primarily those properties.
SPECIAL REVENUE FUNDS: Governmental fund
type used to account for the proceeds of specific revenue
sources (other than for major capital projects) that are
legally restricted to expenditure for specified purposes.
TAX LEVY: The total amount to be raised by general
property taxes for the purpose stated in the resolution
certified to the county auditor.
UNRESTRICTED NET ASSETS: That portion of net
assets that is neither restricted nor invested in capital
assets (net of related debt).
* Source for some definitions: Governmental
Accounting, Auditing, and Financial Reporting,
Government Finance Officers Association, 2005.