Loading...
HomeMy WebLinkAbout2015-Budget-Book 12.29.2014 City of Lake Elmo 2015 Budget 2 This page left blank intentionally. 3 City of Lake Elmo 2015 Budget Dear Mayor Pearson, Members of the City Council & Taxpayers of the City of Lake Elmo: I am pleased to submit to you the 2015 City of Lake Elmo Budget – a budget that represents the second consecutive year of no increase in the property tax levy and a decrease in the tax levy rate. At the request of the City Council, the foundation of the 2015 City of Lake Elmo Budget is based on three governing principles: 1. Efficient, low cost, taxpayer based government 2. Disciplined and balanced market-driven growth 3. Well-ordered, low regulatory burdened quality of life Using these three governing principles as the baseline, the 2014 City Budget has been constructed based on the following metrics: 1. Performance, Lean Based Operations 2. Maintenance of Adequate Reserves & Sound Financial Policies 3. The Cost of Growth is Paid for By Growth 4. Keep the tax burden as low as possible Performance Based Budgeting The 2015 City of Lake Elmo Budget was constructed using performance-based budgeting techniques. That is, each Department began constructing their budget at “0” and worked their way to a cost of doing business pro forma that used five year trend analysis, actual cost forecasting, and projected expense to execute the 2015 Plan of Work. This performance based approach also focused on the allocation of work anticipated in 2015 – namely in the Community Development & Building Departments and created appropriate non- tax based funding sources for work specifically done for new development – both commercial and residential. As an example, to date, the City of Lake Elmo has billed developers $132,207.78 for work it has completed in review of new development in fiscal year 2014. In fact, all of the growth in the general fund budget of $495,000 is related to fees, permits, and review escrows as a result of growth. The use of performance based budgeting also has changed the format of the annual operating budget. Each City Department has created a narrative that highlights their mission statement, addresses significant events in 2014, states major objectives in 2015, contains a detailed line by line budget and establishes performance indicators that will hold the operations accountable to the bottom line. Staff is to be commended for putting these performance metrics in place and their commitment to the proper stewardship of tax dollars. The City of Lake Elmo has also been able to keep the cost of government relatively flat due to partnerships with the Washington County Sheriff’s Department (our 24/7 policing cost equate to $61/ per capita – the lowest for a full service community in Washington County), the City of Oakdale, and the City of Maplewood through cooperative agreements that allow for the sharing of personnel and equipment. Automatic aid has also improved the efficiency of our Fire Department while articulating our coverage area. While most communities allocate 55-60% plus in their operating budget to personnel – Lake Elmo’s human resource costs are roughly 42% of the general operating costs. Pay increases are now based on merit, not a standard cost of living increase with the Human Resources Committee developing evaluation templates to gauge performance. It should also be noted that a majority of current staff is cross functional reducing the need to hire additional staff to complete the work for the City – but we are close to operational capacity. City of Lake Elmo 2015 Budget 4 The City Council also has reduced the Library Budget by 10% to reflect healthy reserves and the actual cost of running the City’s independent library system. Residents also need to know that we continue to work diligently with Washington County on a more efficient library card reimbursement program and inter-library loan. Sound Financial Policies and the Maintenance of Reserves The creation of a formal Finance Committee has greatly improved the internal review function of the City. In 2014 Lake Elmo submitted its first Comprehensive Annual Financial Report to the Government Financial Officers Association – a standard practice in most governments. In the last two years, the City has adopted financial policies in the areas of purchasing, internal control, debt service, undesignated fund balance, and infrastructure debt participation for growth. Finance Committee meets regularly to perform an audit of the previous month’s activities. Adoption of the aforementioned policies, the delivery of a clean audit and the impending growth allowed Lake Elmo to maintain its Aa2 rating with Moodys Investor Service and receive a bond rating increase from Standards and Poors to AA+ due to strong reserves and strong financial performance (Note: You can read the details of each of these ratings in the appendix of this budget document). These bond ratings allow the City to borrow money at a lower rate (approximately 2-3%) and create a competitive environment for bond issuance. The City of Lake Elmo maintains 74% of its operating budget in reserve for emergencies ($1,951,162) and has $520,467 in its debt service account – both well above national averages. For the past three years, the City has paid down $600,000 of an internal planning loan and still delivered budget surpluses in excess of $200,000 – building the undesignated fund balance to its current level. The remainder of the planning loan will be paid for via environmental review fees (AUAR) charged to new development. To emphasize its commitment to Performance Based Budgeting, the Finance Committee eliminated the use of a contingency fund in the 2015 Operating Budget. In the past (prior to 2013), internal service funds were used to pay for unexpected costs (namely equipment repair or weather-related emergency government). Beginning in 2015, these unplanned occurrences will be brought to the Finance Committee for review and expended via the undesignated fund balance after careful scrutiny. As a supplement to the budget, the City of Lake Elmo has acquired $6 million in state grants for water, sewer and economic development projects. $2 million in funds were used to offset the Lake Elmo sewer interceptor project and water main extension in 2013. $3.5 million in funds will be used in 2015 to construct a booster station and water main line to the I94 corridor via Inwood Avenue. $500,000 was granted from the Minnesota Investment Fund to bring 90 new jobs to Lake Elmo through the relocation of Valley Cartage from Wisconsin. Finally, the City of Lake Elmo mitigated $4.5 million in potential wastewater inefficiency fines from the Metropolitan Council via the adoption of the Comprehensive Plan, installation of the Lake Elmo sewer interceptor and elimination of the Memorandum of Understanding. Growth Pays for Growth The City Council and the Finance Committee established a firm policy that new developments and growth will be paid for by the growth. In 2014, the City adopted strict escrow contracts that insure that any review work that city staff performs for developers is 100% cost recoverable – this includes contract work conducted by the City Attorney, City Engineer and other consulting services needed to review new growth plans (ie subdivision plats). Additionally, the City has adopted a new development agreement template that mandates that developers provide 125% of project costs via an irrevocable letter of credit. Contrary to past practices, final plats will not be allowed to be recorded until total project completion is verified – we will not subsidize developer failures anymore. The City has also adopted a firm policy that it will not pay for any new infrastructure associated with growth unless the streets, water, sewer or storm water facilities need to be oversized to benefit the community as a whole. The first two major infrastructure projects associated with growth – Section 34/ Lennar and the East Village Sewer project were approximately 85% funded by developers via waiver of assessment appeal and the granting of easements. These projects are expected to produce $840,000,000 of new value to the community. The other 15% that the community has borrowed for oversizing will result in savings - sewer and water infrastructure savings of approximately $2-2.5 million due to right sizing of pipe and improved hydraulics. The City Council also acquired a first-of-its kind $1.455 million of commitments against future water availability charges on the Lake Elmo Avenue water main installation. These commitments come in the form of cash payments, letter of credits and advance 5 City of Lake Elmo 2015 Budget payments of water availability charges. This represents 58% of the total funds borrowed and secures debt service payments for the first seven years of growth. From a utility standpoint, it is important to note that state bonding, developer security, right sizing our infrastructure, and advance commitments of water availability charges should allow the City to reduce our water rates in the next 18-24 months. Simply put new growth is paying for new growth and often it can relieve the burden on current residents. Reducing Government Burden/Low Tax Rate The City of Lake Elmo still has the distinction of one of the lowest tax rates in the Twin Cities metroplex and is the community that has held its real estate value the best in the past 10 years. The 2015 City Budget endeavors to maintain this status for two reasons: First, other units of government and educational system tax rates are going up largely due to labor agreements and referendum. So during these times of rebalancing, this City Council believes that we at the local level need to do our best to make sure the burden of government is not too high, but still get the work done. Second, there will be other expenses coming the way for many of our taxpayers with the advent of sewer to the downtown area. The City knows that many of you have antiquated septic systems or systems that no longer meet the State of Minnesota requirements. The replacement of these systems (which in turn will protect the water quality of Lake Elmo) and the elimination of downtown flooding are priorities – but will undoubtedly cost taxpayers additional funds. During this time of transition for many families and business, the City Council is committed to keep the burden of local government low. Conclusion The following pages of the 2015 City of Lake Elmo Budget have been crafted thoughtfully and with the above principles and strategies in mind. It is a budget that is beginning to resemble common best practices in local governments across the nation. It has been assembled by a hard working staff that is committed to serving you to the best of their ability each day. This budget transcends the status quo of the past as it is active in its goals, it will measure success and it will hold government accountable. I want to thank the City Council, Finance Committee, Department Head, our external vendors and inter-governmental partners for their help as we enter the era of zero-based, performance budgeting. I trust you will be pleased with the results. Respectfully, Dean A. Zuleger City Administrator City of Lake Elmo 2015 Budget 6 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 Mike Pearson, Mayor Justin Bloyer, Councilmember Wally Nelson, Councilmember Anne Smith, Councilmember Mike Reeves, Councilmember CITY MANAGEMENT TEAM Dean Zuleger, City Administrator Cathy Bendel, Finance Director Adam Bell, City Clerk Mike Bouthilet, Public Works Superintendent Kyle Klatt, Community Development Director Greg Malmquist, Fire Chief FINANCE COMMITTEE Wally Nelson, Finance Committee Chairman and City Council Member Anne Smith, City Council Member Terry Forrest, Retired CFO Julie Fliflet, Director of Finance and Administration 7 City of Lake Elmo 2015 Budget BUDGET INDEX 1. Statistical Guide ......................................................................................................................................................................... 8 City Mission Statement & Core Values ........................................................................................................................ 8 Credit Ratings .............................................................................................................................................................. 9 Washington County Market & Net Capacity Schedule ............................................................................................... 18 Washington County Count of Residential Homesteads by Range of Taxable Market ............................................... 18 2. General Fund Summary (with Narrative) ................................................................................................................................. 19 Pie Charts 2012-2015 ............................................................................................................................................... 21 Department Narratives ............................................................................................................................................... 22 3. Special Revenue Funds ........................................................................................................................................................... 54 4. Debt Service Funds.................................................................................................................................................................. 57 5. Capital Projects Funds ............................................................................................................................................................. 64 6. Enterprise Funds ...................................................................................................................................................................... 67 7. Growth & Development ............................................................................................................................................................ 71 8. Appendix ................................................................................................................................................................................. 75 City of Lake Elmo 2015 Budget 8 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 2013 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 “strong finances supported by conservative budgeting, annual surpluses, and healthy unreserved fund balances; low direct debt burden and favorable personal liability.” CITY MISSION STATEMENT & CORE VALUES Lake Elmo’s “Commitment to the Community,” or mission statement: “To provide quality public services in a fiscally responsible manner while preserving the city’s open space character.” Eight 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.  Thoughtful Community Building We believe in the development of our community through thoughtful, careful planning that is communicated in a positive manner that enhances the process.  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 the development of employees. 9 City of Lake Elmo 2015 Budget CREDIT RATINGS City of Lake Elmo 2015 Budget 10 11 City of Lake Elmo 2015 Budget City of Lake Elmo 2015 Budget 12 13 City of Lake Elmo 2015 Budget City of Lake Elmo 2015 Budget 14 15 City of Lake Elmo 2015 Budget City of Lake Elmo 2015 Budget 16 17 City of Lake Elmo 2015 Budget City of Lake Elmo 2015 Budget 18 WASHINGTON COUNTY MARKET AND NET TAX CAPACITY VALUES OF TAXABLE PROPERTY WASHINGTON COUNTY COUNT OF RESIDENTIAL HOMESTEADS BY RANGE OF TAXABLE MARKET VALUE BEFORE HOMESTEAD EXCLUSION 19 City of Lake Elmo 2015 Budget 2 General Fund 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. 101 – General Fund 2012 Actual 2013 Actual 2014 Budget 2014 Projected 2015 Budget % Change Total Revenue 3,216,584 3,250,605 3,303,535 3,284,375 3,798,334 12.23% Expenses by Department: Mayor & Council 24,209 49,187 45,269 40,581 40,955 0.92% Administration 484,915 379,858 392,494 413,246 407,316 -1.43% Elections 13,857 1,040 13,350 11,290 1,050 -90.70% Communications 22,512 44,194 35,570 61,692 70,842 14.83% Finance 151,326 157,203 154,935 155,120 134,646 -13.20% Planning & Zoning 165,068 250,077 271,859 249,524 218,138 2.79% Engineering Services 69,864 34,501 48,000 53,000 54,800 3.4% City Hall 26,327 26,283 24,733 37,288 50,235 34.72% Total General Government 958,079 942,343 986,210 990,356 984,063 -0.64 Police 492,911 495,759 500,000 510,000 517,799 1.53% Prosecution 47,224 52,104 51,000 50,274 50,000 -0.54% Fire 336,792 366,162 395,456 395,809 385,312 -2.65% Fire Relief 39,956 53,778 37,324 37,324 37.324 0.00% Building Inspection 132,591 139,939 152,874 142,018 323,558 127.83% Emergency Communication 6,194 3,745 5,800 7,000 7,000 0.00% Animal Control 1,319 13,729 6,282 6,800 6,800 0.00% Total Public Safety 1,056,987 1,125,217 1,148,735 1,149,224 1,327,792 15.54% Public Works 295,132 473,807 378,609 374,563 380,195 1.50% Streets 190,361 204,416 176,800 211,500 222,578 5.24% Ice & Snow Removal 45,320 126,648 96,000 87,000 95,500 9.77% Street Lighting 38,691 25,988 28,800 24,000 28,000 16.67% Recycling 12,776 7,584 7,400 5,400 9,500 75.93% Tree Program 4,126 11,325 5,000 5,000 6,000 20.00% Total Public Works 586,405 849,768 692,609 707,463 741,773 4.85% City of Lake Elmo 2015 Budget 20 Parks & Recreation 144,668 166,343 205,239 156,175 153,028 -2.02% IT & Telephone 49,254 52,915 70,741 94,653 109,560 15.75% Compensation Adjustments 0 0 0 0 35,000 100.00% Debt Service paid by Optns 0 0 21,632 21,632 247,118 1042.37% Contingency Fund 0 0 0 0 0 0.00% Internal Loan Repmt 200,000 200,000 200,000 200,000 200,000 0.00% Total Expenses 2,995,393 3,136,586 3,303,535 3,297,872 3,798,334 15.18% Net Income Over Expenses 221,191 (85,981) 0 86,503 0 NA 21 City of Lake Elmo 2015 Budget GENERAL FUND REVENUES City of Lake Elmo 2015 Budget 22 MAYOR & COUNCIL MISSION STATEMENT To provide for the legislative and policy-making activities of the City’s government; to provide for the planning and control of the municipal expenditures through the adoption of an annual budget.; to provide for the generation of revenue though the levying of taxes, fees, and rate structures; to provide a forum for citizen input into the policy process through public hearings, advisory commissions, public testimony, and civic and community groups. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Formed the Finance Committee, which meets monthly at minimum. Two council members sit on committee.  Formed the Human Resources Committee, which meets quarterly at minimum. One council member and the mayor sit on committee.  Held annual Local Board of Appeal and Equalization. Two council members attended training to acquire certification.  Worked with staff to obtain $3.5 Million dollars in 2014 State Bonding. Primary Concentration for Remainder of year:  Continue to work on attaining resolution for 3M lawsuit.  Continue to work on finding Lake Elmo Library solution for accessing Washington County resources MAJOR 2015 OBJECTIVES  Onboard 2 newly elected Council members.  Continue to work on attaining resolution for 3M lawsuit if not already achieved.  Continue to work on finding Lake Elmo Library solution for accessing Washington County resources if not already achieved  The Mayor and at least one Council Member attend 2015 LMC conference.  Continue serving on City Council Committees that make recommendations to the City Council as a whole.  Continue to represent the City on various boards and Commissions pertaining to local government. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1110 – Mayor & Council PT Salaries 16,435.00 25,690.00 25,690.00 25,690.00 25,690.00 0% FICA Contributions 1,018.98 1,592.78 1,592.78 1,592.78 1,592.78 0% Medicare Contributions 238.28 372.54 372.54 372.54 372.54 0% Workers Compensation 36.00 326.02 300.00 326.02 300.00 7.99% Mileage 469.53 253.11 800.00 0.00 500.00 -500% Miscellaneous 766.78 6,655.07 5,000.00 2,000.00 0.00* 100% Dues & Subscriptions 3,689.19 12,711.32 10,514.00 10,000.00 11,500.00 -15% Conferences & Training 1,554.92 1,586.00 1000.00 600.00 1,000.00 -66.67% Total Administration 24,208.68 49,186.84 45,269.32 40,581.38 40,955.32 -0.92% PERFORMANCE INDICATORS Successful execution of 2015 Plan of Work *Youth Services Bureau fees now presented under Police Services 23 City of Lake Elmo 2015 Budget ADMINISTRATION MISSION STATEMENT To create a lean and efficient government that properly stewards taxpayer dollars and resources, establishes best practices in the management and welfare of the employees, and provides transparency, fairness, and low burdened regulation. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Secured $3.5 Million in MN State Bonding for Inwood Avenue water Infrastructure Spearheaded by a bipartisan effort of local legislators, Lake Elmo was able to secure $3.5 million in state bonds to construct a watermain line to the I-94 corridor. Mayor Pearson, City staff, and our lobbying team worked tirelessly since November to secure the funding.  Achieved the elimination of the Metropolitan Council Memorandum of Understanding mandating growth. The City now controls its growth plans.  Staff began scanning property records into Laserfiche for digital retention. Staff digitized all Council Resolutions from 1990 to present. This also involves destroying the related documents pursuant to the City Retention policy.  Coordinated the amendment and codification of fourteen ordinances.  Responded to three data requests involving more than simple copy reproduction.  Staff achieved 0% health benefits rate increase, in part due to low rate of utilization.  City Administrator attended 2014 Minnesota City Managers Association conference.  City Clerk attended second year of Minnesota Municipal Clerks’ Institute. Municipal Clerk Certification is awarded after three years.  City Clerk and Deputy Clerk attended the 2014 Minnesota Clerk and Finance Officers Association Conference.  City Clerk and Deputy Clerk attended the 2014 League of Minnesota Cities Insurance Trust Loss Prevention training.  Processed over 29,000 pages for City Council Agenda packets through August 5, 2014 meeting.  Created over 90 pages of City Council meeting minutes through August 5, 2014 meeting.  Published over 45 legal notices in the newspapers of record.  Utilized Predictive Index assessment tool with 100% staff and 80% of the City Council. Primary Concentration for Remainder of year:  Continue to work on attaining resolution for 3M lawsuit.  Implement electronic packets for the City Council  Maintain the City’s official records and make them readily accessible. Continue to digitize and destroy paper records according to retention policy.  Work with HR Committee to develop employee Performance Management system that replaces the annual employee evaluation score sheet. This also includes training and development systems that align with City goals.  Create and coordinate Employee Satisfaction survey.  Create and revise job descriptions for 100% of staff positions.  Create and implement standard employee, commissioner, committee or board member recruitment procedure.  Keep informed of the current laws governing areas of human resources and employment law, record management and data practices, and open meeting law. MAJOR 2015 OBJECTIVES  After successfully implementing electronic packets for the City Council, expand option to the Planning Commission and meeting staff.  Implement a City employee wellness program.  Have all Commission members complete the Predictive Index assessment.  Maintain and protect the privacy and security of employee records.  Continue to develop employment policies based on best management practices and compliance with employment laws.  Work closely with other local government jurisdictions, local civic organizations and agencies to better serve the City.  Keep informed of the current laws governing areas of human resources and employment law, record management and data practices, and open meeting law. DEPARTMENT BUDGET SUMMARY City of Lake Elmo 2015 Budget 24 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1320 – Administration FT Salaries 221,050.46 163,556.15 176,384.00 172,109.70 198,125.20 -15.12% PERA Contributions 15,308.04 11,766.06 12,505.02 12,477.95 14,364.08 -15.12% ICMA Contributions 0.00 0.00 0.00 0.00 0.00 0.00% FICA Contributions 13,071.08 9,596.66 10,603.92 10,670.80 12,283.76 -15.12% Medicare Contributions 3,057.07 2,244.41 2,479.96 2,495.59 2,872.82 -15.12% Health/Dental Insurance 25,567.57 35,684.00 47,636.00 43,440.00 44,865.45 -3.28% Unemployment Benefits 0.00 3,082.47 0.00 0.00 0.00 0.00% Workers Compensation 1,121.12 728.39 1,000.00 1,000.00 1,000.00 0.00% Office Supplies 8,440.74 6,269.32 6,000.00 6,000.00 5,500.00 8.33% Printed Forms 1,886.58 0.00 0.00 0.00 0.00 0.00% Legal Services 69,359.72 58,455.29 60,000.00 22,500.00 45,000.00 -100.00% Assessing Services 44,977.84 32,234.14 30,500.00 32,000.00 32,000.00 0.00% Contract Services 19,014.12 5,000.00 0.00 37,480.00 0.00 100.00% Postage 4,488.63 1,050.55 4,053.50 1,000.00 2,000.00 -100.00% Mileage 1,009.99 1,050.55 600.00 175.00 500.00 -185.71% Legal Publishing 2,844.54 2,856.78 2,400.00 4,000.00 5,000.00 -25.00% Insurance 34,611.16 35,339.30 35,000.00 35,000.00 35,000.00 0.00% Miscellaneous 8,078.53 3,009.15 600.00 950.00 600.00 36.84% Dues & Subscriptions 807.28 1,315.96 600.00 2,105.00 2,105.00 0.00% Books 32.64 464.31 0.00 42.28 0.00 100.00% Conferences & Training 8,399.32 3,152.01 2,185.00 8,800.00 6,100.00 30.68% Staff Development 1,042.60 0.00 0.00 0.00 0.00 0.00% Total Administration 484,915.42 379,858.45 396,538.62 392,246.33 407,316.30 -3.84% PERFORMANCE INDICATORS Target 2015 Number of Ordinances Codified Resolutions Processed Business licenses Issued “Excellent” or “Good” Quality of Life resident rating Administrative Hearings held Response time to call or email inquiry Employee Satisfaction rate Wellness Program participation Human Resources Committee meetings Human Resources Policies revised/created 12 110 20 95% 3 <24 hours 90% 50% 8 25 25 City of Lake Elmo 2015 Budget Employee Exit Interviews Data Practice Requests Digitize records (number of pages) Destroy Records (number of pages) Number of Legal Publications 100% 5 10,000 3,000 60 City of Lake Elmo 2015 Budget 26 ELECTIONS MISSION STATEMENT To provide for an orderly process that allows for all Lake Elmo residents to exercise their right to vote. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Due to the timing of elections being regularly held late in the calendar and therefore budget year, there was a significant event in 2013 that took place after the 2014 budget was prepared. Successfully held 2013 Special Election – Independent School District #834.  Clerk and Deputy Clerk received 10+ hours of election training by Washington County, State of Minnesota, and League of Minnesota Cities.  Refined and revamped City Election Judge training.  Performed 2+ hours of election training for 40 Election Judges. Performed 2+ hours of election training 2 Head Election Judges.  Implemented new election equipment into service during the 2014 primary election. DS200 Vote Tabulator purchased by Washington County. Primary Concentration for Remainder of year:  Conduct successful 2014 State Primary and General elections in 2 City precincts. MAJOR 2015 OBJECTIVES  Changes in Elections Department activity and budget needs correlate with election years. Elections are held in even number years and therefore costs and activity overall will be higher in those years and lower in odd number years.  Continue to partner with Washington County Elections Division.  Keep informed of the current laws governing elections and area of responsibility. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1410 - Elections PT Salaries 9,873.00 100.00 10,000 9,500.00 0.00 100.00% Office Supplies 1,124.92 0.00 500.00 450.00 0.00 100.00% Legal Publications/ Notification 0.00 0.00 500.00 400.00 0.00 100.00% Election Equipment 0.00 0.00 0.00 0.00 0.00 0.00% Equipment Repair 0.00 0.00 450.00 0.00 0.00 0.00% County Election Fees 0.00 940.00 950.00 940.00 950.00 -1.06% Printed Forms 350.00 0.00 350.00 0.00 0.00 0.00% Miscellaneous 2,509.42 0.00 600.00 0.00 100.00 -100.00% Total Elections 13,857.34 1,040.00 13,350.00 11,290.00 1,050.00 90.70% PERFORMANCE INDICATORS Target 2015 Registered Voters N/A Total Voters N/A Percentage Voting N/A *N/A – Not applicable because no election planned. 27 City of Lake Elmo 2015 Budget COMMUNICATIONS MISSION STATEMENT To provide the citizens of Lake Elmo with the most informed, efficient and transparent customer service experience possible. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Maintained relevant website content, and daily, weekly and quarterly news updates.  Conducted (4) neighborhood meetings  Increased usage of social media to include YouTube channel featuring streaming of community event video and relevant meeting replays.  Launched a park marketing program including weekly featured park e-blasts, interactive park location map on website, and cable programming.  Increased cable programming including production and launch of “The Mayor Show”  Continued Speak Your Peace Initiative including collaborating with the Lake Elmo Elementary School, Lake Elmo Rotary, and the Lake Elmo Library, maintained relevant SYP website and production of SYP video vignettes.  The successful planning, marketing, and execution of (3) community events: Summer Kick-Off, Street Dance, and Battle of the Bands.  The distribution of (5) community surveys on a variety of relevant topics.  Introduced the ‘fresh’ brand to the community through saturation mailing.  Introduced new theming elements to community through design and installation of new park signs.  Converted cable bulletin broadcast from Compix to web-based carousel program; refreshing bulletin to utilize ‘fresh’ brand.  Converted and upgraded to digital meeting recording and archiving  Continued to cultivate network of NextGen volunteers  Increased City of Lake Elmo Facebook page fan base by 54%  Increased ‘fresh’ weekly e-news distribution list by 10% PRIMARY FOCUS FOR REMAINDER OF 2014  Develop FAQ list and add to website  Produce three more episodes of “The Mayor Show”  Present (2) more community events – Volksmarch & Light Up Lake Elmo MAJOR 2015 OBJECTIVES  Continue promoting ‘fresh’ brand both internally and externally o Creating a community promotional video o Creating an identity manual and standardized collateral to maintain brand integrity  Implement new CRM (Citizen Request Management) program and policies  Remap website for efficiency and content consistency  Continue to develop and improve cable broadcasts and webstreaming to include more video production/programming, and expanded bulletin broadcast  Continue to cultivate NextGen group – primary project research and establish community Farmers Market  Continue Speak Your Peace Project by reaching out to at least (3) groups or events DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1450 -Communications FT Salaries 9,667.01 18,419.54 13,390.00 28,875.70 35,875.70 -24.24% PERA Contributions 700.90 1,335.45 970.78 2,093.49 2,600.99 -24.24% FICA Contributions 590.86 1,106.04 830.18 1,790.29 2,224.29 -24.24% Medicare Contributions 138.16 258.62 194.16 418.70 520.20 -24.24% Health/Dental Insurance 0.00 3,264.00 3,120.00 9,933.70 9,970.10 -0.36% Workers Compensation 56.00 85.23 110.00 0.00 0.00 0.00% City of Lake Elmo 2015 Budget 28 Newsletter 6,897.30 9,785.63 8,000.00 8,000.00 8,000.00 0.00% Office Supplies 91.07 1,026.09 304.41 560.69 560.69 0.00% Mileage 0.00 41.64 100.00 100.00 100.00 0.00% Public Notices 859.99 6,163.62 4,200.00 4,200.00 5,040.00 -20.00% Cable Operations 3,360.88 2,054.84 3,600.00 4,720.00 4,800.00 -1.69% Conferences 0.00 498.00 700.00 700.00 700.00 0.00% Repair/Maint Equipment 150.00 155.50 50.00 299.00 450.00 -50.50% Total Communications 22,512.17 44,194.20 35,569.53 61,691.57 70,842.97 -14.83% PERFORMANCE INDICATORS Actual 2013 Target 2014 Proj. 2014 Target 2015 Increase/Improve Cable /Web stream Utilization - # Mayor Show production (episodes) 0 12 5 6 - # Community feature video segments 0 0 0 4 Taxpayer Engagement/Feedback - # Surveys issued 1 6 6 6 - # Neighborhood/Community Meetings 0 5 5 5 Speak Your Peace Civility Project - # presentations/events 1 3 3 3 Consistent and Timely Communication Management - % Source newsletters delivered on deadline 100% 100% 100% 100% - % ‘fresh’ e-blasts on deadline 100% 100% 100% 100% Increase Social Media Presence/Reach - % Increase Facebook followers - 10% 60% 10% - % Increase ‘fresh’ subscribers - 10% 10% 10% 29 City of Lake Elmo 2015 Budget FINANCE MISSION STATEMENT To provide accurate and timely reporting to the City Council, Finance Committee, City Departments, state, county, other regulatory agencies and the residents of Lake Elmo. This includes audited financial statements, utility billing, assessments, and all other monthly, quarterly and annual reporting. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Completion of the first CAFR report for the City of Lake Elmo.  Receipt of an unqualified opinion on the City’s 2013 financial audit with no audit findings.  Completion of the 2014 bonding cycle and all required reporting; maintained Aa2 bond rating with Moody’s rating agency and received an improved rating from S&P.  Completion of the water cash flow model/pro-forma reports as outlined by the Finance Committee.  Initialized tracking, reporting and reconciliation process related to Developer escrows.  Streamlined month end close process to allow for earlier draft financial statements for the Finance Committee review.  Began work on the 2015 budget and set up templates for the new zero based budgeting process. Primary focus for the remainder of 2014  Completion of the sewer cash flow model/pro-forma reports as outlined by the Finance Committee.  Completion of streamlined purchasing policy.  Propose and finalize an internal control policy for the City.  Complete the 2015 budget.  Implement a process to accept on-line utility billing payments and to accept credit card payments. Propose how to incorporate the related costs into the billing fees.  Complete a water and sewer rate study to determine if any rate adjustments are possible for 2015.  Provide reporting support to all commissions and departments as requested.  Work with the Finance Committee to enhance fund reporting and development pro-forma analysis.  Timely submission of all certifications and reporting to the state and county agencies.  Initialize structure for archiving Finance records and related security on access to those documents. MAJOR 2015 OBJECTIVES  Complete 2014 year end close out work by February 28, 2015. (This includes payroll, utility billing and financial)  Complete 2014 audit fieldwork by March 15th, 2015.  Complete 2014 audit by May 15th, 2015.  Submission of 2014 to OSA and GFOA by due date of 6/30/15.  Enhance bond offering statement reporting and maintain Aa2 bond rating with Moody’s.  Perform an in-depth review and analysis of the Utility Billing and General Ledger systems to identify areas for improved performance and efficiencies.  Initialize developer tracking reports for reporting upon development activity and progress.  Initialize interactive Utility Billing activities on the City website (Balance inquiries, account updates, payment processing etc).  Timely submission of all certifications and reporting to the state and county agencies.  Provide knowledgeable, courteous customer service to everyone who contacts the Finance Department.  Continue zero based budgeting and incorporate reporting on the performance indicators identified by departments during the 2015 budget process.  Complete archiving of 2012 and 2013 Finance Department records. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1520 - Finance FT Salaries 40,211.20 87,576.16 87,880.00 84,308.86 66,863.00 20.69% PT Salaries 0.00 0.00 0.00 0.00 3,600.00 -3600.00% PERA Contributions 2,402.81 6,379.58 6,371.30 6,112.39 4,847.57 20.69% City of Lake Elmo 2015 Budget 30 FICA Contributions 2,199.03 5,169.26 5,448.56 5,227.15 4,368.71 16.42% Medicare Contributions 514.22 1,208.80 1,274.26 1,222.48 1,021.71 16.42% Health/Dental Insurance 6,132.13 18,496.00 19,936.00 10,988.80 14,955.15 -36.09% Unemployment Benefits 11,343.00 0.00 0.00 6,400.45 3,000.00 53.13% Workers Compensation 176.00 405.18 600.00 77.56 500.00 -544.66% Office Supplies 483.75 457.06 300.00 483.13 500.00 -3.49% Printed Forms 236.50 0.00 0.00 433.47 500.00 -15.35% Audit Services 26,810.00 20,500.00 27,000.00 27,000.00 27,000.00 0.00% Contract Services 58,570.12 15,124.52 4,500.00 11,590.02 6,000.00 48.23% Mileage 168.72 44.40 50.00 0.00 50.00 -50.00% Miscellaneous 1,573.00 1,431.93 1,000.00 25.28 200.00 -691.14% Dues & Subscriptions 0.00 185.00 0.00 0.00 740.00 -100.00% Conferences & Training 505.80 225.00 575.00 710.85 500.00 29.66% Total Finance 151,326.28 157,202.89 154,935.12 154,580.44 134,646.14 12.90% PERFORMANCE INDICATORS Mail out water bills by the 15th of the month following quarter end. Mail out storm water bills by the 15th of the month following year end. Posting of UB payments within 3 days of receipt. Payment of all vendor invoices within 15 days of receipt by the Finance department. Month end close completed by 5th working day. Monthly financial statements published each month by 8th working day. 31 City of Lake Elmo 2015 Budget COMMUNITY DEVELOPMENT MISSION STATEMENT To thoughtfully adopt a City-wide Comprehensive Plan and implementation strategies that maintains the open space character of the community while balancing attractive, sustainable growth opportunities that meet the requirements of the Metropolitan Council. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Conducted reviews of four subdivision sketch plans, including Easton Village, Village Preserve, Wildflower at Lake Elmo, and Gonyea South  Completed review of one final plat for Savona; 44 single family lots platted and recorded with County  Finalized development agreement with Lennar for Savona; established policies for street lights, landscaping, and park dedication to use in future agreements  Completed reviews for six preliminary plats: Hammes West, Hunter’s Crossing, Easton Village, Village Preserve, Lakewood Crossing, Boulder Ponds. These plats combined include 626 single family lots, 64 multi-family units, and 4 commercial parcels  Processed four Comprehensive Plan amendments to revise the residential density ranges, reconsider the RAD-ALT land use category, and revise the future land use for the Holliday property along 30th Street  Continued to work towards completion of a major Zoning Ordinance rewrite, adopted 10 separate amendments to the Zoning Ordinance ranging from perfecting amendments to new exterior storage and screening ordinances  Prepared a new Outdoor Wedding Venue Ordinance to allow alternate agricultural related uses on larger properties  Adopted a major amendment to the Shoreland Management Overlay Ordinance to bring the code up-to-date with the revised Zoning Ordinance and to incorporate sewered areas into the City’s shoreland zones.  Prepared three Zoning Map amendments to support new development proposals  Reviewed four major Planned Unit Development projects: Wildflower at Lake Elmo, Boulder Ponds, and Launch Properties (concept review) and Eagle Point Medical (preliminary and final)  Considered three Conditional Use Permits: Verizon Wireless Tower, Family Means, and Kwik Trip Convenience Store  Conducted a review of rural development parcels, culminating in a Planning Commission recommendation to eliminate the RAD-ALT land use category  Completed work to eliminate the MOU with the Met Council and successfully negotiated a reduction in the City’s 2040 household and population targets as stated in the MOU  Participated as part of the project management team for the Lake Elmo Avenue and Manning Avenue corridor projects  Represented Lake Elmo as a member of the Gateway Corridor Technical Advisory Committee  Completed reviews of two variances, both pertaining to shoreland issues  Organized initial business owner meeting and prepared draft Lake Elmo Market Area Profile Report  Completed ordinance establishing cost recovery for Village AUAR  Hired Planning Intern for summer; prepared trail audit report to study current conditions and ownership of trails in Lake Elmo PRIMARY FOCUS FOR REMAINDER OF 2014  Prepare form-based code for Village Mixed Use District and surrounding area  Complete five-year update of the Lake Elmo AUAR  Process final plat applications for five residential subdivisions, prepare development agreement for each project  Continue making progress at Zoning Ordinance update by bringing forward additional amendments  Continue discussions on rural development areas, with focus on larger lot standards and requirements  Provide staff support for Lake Elmo Avenue, Manning Avenue and Gateway Corridor Projects  Prepare Airport Zoning amendment  Obtain required permits for new railroad crossing in Village MAJOR 2015 OBJECTIVES  Complete Zoning Ordinance amendment project by completing work on: o Specific development standards o General development standards o Lighting o Final district amendments (PF and rural districts) o Final perfecting amendments City of Lake Elmo 2015 Budget 32  Provide support for Lake Elmo Avenue Streetscape Project  Provide project oversight of residential and commercial development projects; ensure compliance with project conditions and development agreements  Continue to process land use applications in a timely manner DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1910 - Planning & Zoning FT Salaries 91,970.19 153,836.82 159,874.00 139,361.75 135,853.65 2.52% PT Salaries 0.00 0.00 0.00 3,600.00 3,600.00 0.00% PERA Contributions 6,120.34 11,298.24 11,590.87 10,103.73 9,849.39 2.52% FICA Contributions 5,372.71 9,164.52 9,912.19 8,863.63 8,646.13 2.45% Medicare Contributions 1,256.49 2,143.57 2,318.17 2,072.95 2,022.08 2.45% Health/Dental Insurance 10,170.91 27,488.00 34,814.00 32,136.00 32,047.75 -0.28% Workers Compensation 425.64 751.34 800.00 800.00 800.00 0.00% Office Supplies 493.19 2,782.63 2,000.00 0.00 1,800.00 -1800.00% Printed Forms 414.00 2,333.85 750.00 0.00 750.00 -750.00% Engineering Services 22,065.03 21,792.84 36,000.00 18,000.00 20,000.00 -11.11% Contract Services 22,366.72 14,869.24 10,000.00 0.00 5,000.00 -5000.00% Postage 0.00 73.62 200.00 400.00 200.00 50.00% Mileage 173.16 0.00 200.00 0.00 250.00 -250.00% Miscellaneous 3,174.60 1,021.56 500.00 100.00 500.00 -400.00% Dues & Subscriptions 66.00 600.00 600.00 400.00 600.00 -50.00% Books 164.85 481.37 300.00 300.00 300.00 0.00% Conferences & Training 834.00 1,439.24 2,000.00 2,000.00 2,000.00 0.00% Total Planning & Zoning 165,067.83 250,076.84 271,859.23 218,138.05 224,218.24 -2.79% PERFORMANCE INDICATORS Target 2015 Number of general land use/planning inquiries and requests (phone and email). 100+ Percentage of inquiries addressed/completed in three business days. 75% Average number of business days for land use application completeness reviews 10 Number of land use applications (subdivisions, variances, CUP’s, PUD,s, and similar) 50 Percentage of planning/zoning reviews completed within 60 days 75% Number of sign permits 10 Number of Certificates of Zoning Compliance 8 Number of Planning Commission meetings 24 Attendance at special neighborhood or community meetings 12 33 City of Lake Elmo 2015 Budget ENGINEERING MISSION STATEMENT To provide professional engineering services for the efficient and effective planning, design, construction and maintenance of the City’s public infrastructure. The department administers all capital improvement projects and developer installed improvements for transportation, streets, drainage, storm water management, supply and distribution of potable water, and sanitary sewer conveyance including design, right-of-way, contracting, inspections and final acceptance of projects. It is the mission of the Engineering Department to provide a secure and reliable infrastructure that is designed and built in accordance with City standards, state and federal regulations, and accepted engineering and construction practices; and serves all members of the community while continuing to find innovative ways to improve the cost and delivery of services and projects. DISCUSSION OF SIGNIFICANT 2014 EVENTS GENERAL ENGINEERING SERVICES (GENERAL FUND-1930): The following Engineering tasks and events represent annual program tasks associated with department management and working as an extension of City staff to provide day-to-day operational municipal engineering services under an annualized program budget. General Services includes day-to-day tasks that cannot be directly attributed to a specific infrastructure planning or design project, a specific development project, or a dedicated enterprise account.  Engineering is providing day-to-day operational tasks necessary to interact with and support other City departments, and to interact with, inform and assist taxpayers, developers and local businesses, including inquiries via meetings, phone, email or counter visits.  Engineering attends City staff meetings and department meetings as requested and completes department management tasks as assigned.  Engineering prepares agenda reports and Council presentations, and attends Council meetings at $100 per meeting.  Engineering prepares Workshop presentations and attends Workshops as requested.  Engineering receives, processes and responds, when required, to federal, state, and local agency correspondence and inquiries.  Engineering maintains the City Engineering Design Standards Manual and monitors construction best practices for public infrastructure. Annual revisions and updates are completed with a goal of continuous improvement. City Ordinances are updated, reviewed, and improved as necessary.  Engineering maintains the City engineering mapping, files and records; and responds to many requests for maps, reports, record drawings, and other engineering related files.  Engineering researched and implemented Beehive Asset Management Software for public infrastructure systems and assisted the City with purchase and deployment.  Engineering serves as the City’s Right-of-Way Manager and oversees all work in the public R/W including permit processing. Engineering costs and City staff costs are recouped through permit application fees.  Engineering completed and maintained a Public Works/Engineering website to inform tax payers regarding infrastructure planning and construction activities. CAPITAL IMPROVEMENT PROJECTS [Budgets are established as Projects are initiated and authorized and each project is managed on a Job-To- Completion basis] Engineering is responsible for implementing Capital Projects in accordance with the City’s capital improvement program and at the direction of the City Council. Engineering budgets, including both FOCUS Engineering and outside supporting consultants, are included and accounted for in the capital project costs listed in the Capital Improvement Plans. Each project is initiated through Council Resolution after the total project budget and schedule is presented for council consideration. Engineering manages each Project budget on a Job-To-Completion basis rather than a calendar year. Most capital projects/budgets extend across multiple calendar years and therefore cannot be annualized with the City’s calendar budget. Budget status for both engineering costs and total project costs are reported on a monthly basis over the duration of each project. From time to time the City receives taxpayer/developer petitions requesting public improvements or the City Council initiates a capital project not listed on the Capital Improvement Plan. These projects are brought forward for council consideration and must be authorized by the Council before work is expended on the project.  Completed the construction and warranty review for the $2.0 million Keats MSA Street and Trunk Watermain Improvements.  Completed the construction of the $4.5 million Lake Elmo Avenue Sewer and Lift Station Infrastructure Improvements: I94-30th Street.  Completed the construction of the $2.4 million Section 34 Water and Sewer Utility Extension and Lift Station Improvements.  Oversaw the design and construction of the $450,000 Production Well No. 4, the $985,000 Pumphouse No. 4, and the $600,000 Well No. 4 Connecting Watermain Improvements. City of Lake Elmo 2015 Budget 34  Oversaw the planning, design and construction for the $1.8 million 2014 Street Improvements consisting of the Packard Park neighborhood, Legion Avenue, Manning Trail, Deer Trail and Deer Court Ponds.  Oversaw the planning, design and construction for the $2.5 million Lake Elmo Avenue Trunk Watermain Improvements.  Completed a fast tracked sewer extension project involving the $1.25 million 39th Street: Street and Sanitary Sewer Improvements, the $300,000 publically constructed Village East Trunk Sanitary Sewer Improvements, and review and oversight of the $500,000 privately constructed Village East Trunk Watermain and Sanitary Sewer Improvements.  Oversaw the planning, design and site acquisition for the $3.4 million Inwood Booster Station and Trunk Watermain Improvements; ready for 2015 construction.  Oversaw the planning, feasibility report and design for the $2.9 million 2015 Street and Utility Improvements consisting of 36th Street, 37th Street, Irwin Avenue, 38th Street, 39th Street, Innsdale Avenue, and Kelvin Avenue; project ready for 2015 construction.  Completed a Village area sanitary sewer phasing plan.  Completed the planning, feasibility report and design for the Old Village Phase 1 Street and Utility Improvements; project ready for 2015 construction in conjunction with the City-County joint CSAH 17 Improvement project.  Completed design guidelines and standards for the 5th Street and Village Parkway collector roadways.  Oversaw the planning and preliminary design for a preferred access management plan and preliminary layout for the State Highway 36 South Frontage Road Study.  Through County and MnDOT collaboration, provided Transportation and Traffic planning and improvements including the State highway 5 Traffic Signals and Turn Lanes; the installation of Cooperative Agreement Improvements.  Collaborated with Washington County and City Planning staff to prepare a preliminary layout and final design documentation for the CSAH 17 (Lake Elmo Avenue) Corridor Improvement Project; ready for 2015 construction.  Collaborated with Washington County and City Planning staff to prepare a preliminary layout CSAH 15 (Manning Avenue) Corridor Improvement Project. DEVELOPMENT PROJECTS [Engineering costs are substantially recovered through the City’s Development Agreements and Escrow Security Process. Budgets are established as Projects are initiated and they are managed on a Job-To-Completion basis] Engineering is responsible for infrastructure planning, plan review, construction oversight, and recommending final acceptance of developer installed public improvements. Development projects are initiated and led by private property owners who control the scope and schedule of improvements to be completed. Engineering costs incurred by the City for review and oversight are substantially recovered from the developers through the City’s Development Agreements and Escrow Security Process. Engineering manages each Project budget on a Job-To- Completion basis rather than a calendar year. Most development projects extend across multiple calendar years and therefore cannot be annualized with the City’s calendar budget. Engineering costs are reported monthly to the Finance Director and coded by project number to enable cost recovery through the escrow.  Provided review and oversight for concept plans, preliminary and final development plats and final construction plans; and when applicable provided construction observation and administration on private development projects. Development projects included Savona, Savona 2nd Addition, Boulder Ponds, Hammes West, Azur Properties, Hunters Crossing, Pratt Homes, Launch Properties I94 Business Park, Gonyea Parcel A, Gonyea Parcel B, Gonyea Parcel E, Easton Village, Wildflower at Lake Elmo, Eagle Point Medical Center, and Lakewood Crossing-Kwik Trip. MAJOR 2015 OBJECTIVES GENERAL ENGINEERING SERVICES (GENERAL FUND-1930): The following Engineering tasks and events represent annual program tasks associated with department management and working as an extension of City staff to provide day-to-day operational municipal engineering services under an annualized program budget. General Services includes day-to-day tasks that cannot be directly attributed to a specific infrastructure planning or design project, a specific development project, or a dedicated enterprise account.  Provide day-to-day operational tasks necessary to interact with and support other City departments, and to interact with, inform and assist taxpayers, developers and local businesses, including inquiries via meetings, phone, email or counter visits.  Attend City staff meetings and department meetings as requested and complete department management tasks as assigned.  Prepare agenda reports and Council presentations, and attend Council meetings.  Prepare Workshop presentations and attend Workshops as requested.  Receive, process and respond, when required, to federal, state, and local agency correspondence and inquiries.  Maintain the City Engineering Design Standards Manual and monitor construction best practices for public infrastructure. Complete annual revision and update with a goal of continuous improvement.  Maintain the City engineering mapping, files and records; and respond to all requests for maps, reports, record drawings, and other engineering related files.  Serve as the City’s Right-of-Way Manager and oversee all work in the public R/W including permit processing. Engineering costs and City staff costs are recouped through permit application fees.  Maintained the Engineering website to inform tax payers regarding infrastructure planning and construction activities. 35 City of Lake Elmo 2015 Budget CAPITAL IMPROVEMENT PROJECTS [Budgets are established as Projects are initiated and authorized and each project is managed on a Job-To- Completion basis] Engineering is responsible for implementing Capital Projects in accordance with the City’s capital improvement program and at the direction of the City Council. Engineering budgets, including both FOCUS Engineering and outside supporting consultants, are included and accounted for in the capital project costs listed in the Capital Improvement Plans. Each project is initiated through Council Resolution after the total project budget and schedule is presented for council consideration. Engineering manages each Project budget on a Job-To-Completion basis rather than a calendar year. Most capital projects/budgets extend across multiple calendar years and therefore cannot be annualized with the City’s calendar budget. Budget status for both engineering costs and total project costs are reported on a monthly basis over the duration of each project. From time to time the City receives taxpayer/developer petitions requesting public improvements or the City Council initiates a capital project not listed on the Capital Improvement Plan. These projects are brought forward for council consideration and must be authorized by the Council before work is expended on the project.  Implement the 2015 Capital Improvement Projects as adopted by authorized by the City Council.  Complete the $1.25 million 39th Street: Street and Sanitary Sewer Improvements, the $300,000 publically constructed Village East Trunk Sanitary Sewer Improvements, and the $500,000 privately constructed Village East Trunk Watermain and Sanitary Sewer Improvements.  Complete the $3.4 million Inwood Booster Station and Trunk Watermain Improvements.  Complete the $2.9 million 2015 Street and Utility Improvements consisting of 36th Street, 37th Street, Irwin Avenue, 38th Street, 39th Street, Innsdale Avenue, and Kelvin Avenue.  Complete the Old Village Phase 1 Street and Utility Improvements in conjunction with the City-County joint CSAH 17 Improvement project.  Initiate feasibility reports for the 2016 Capital Improvement Projects. DEVELOPMENT PROJECTS [Engineering costs are substantially recovered through the City’s Development Agreements and Escrow Security Process. Budgets are established as Projects are initiated and they are managed on a Job-To-Completion basis] Engineering is responsible for infrastructure planning, plan review, construction oversight, and recommending final acceptance of developer installed public improvements. Development projects are initiated and led by private property owners who control the scope and schedule of improvements to be completed. Engineering costs incurred by the City for review and oversight are substantially recovered from the developers through the City’s Development Agreements and Escrow Security Process. Engineering manages each Project budget on a Job-To- Completion basis rather than a calendar year. Most development projects extend across multiple calendar years and therefore cannot be annualized with the City’s calendar budget. Engineering costs are reported monthly to the Finance Director and coded by project number to enable cost recovery through the escrow.  Provided review and oversight for concept plans, preliminary and final development plats and final construction plans; and when applicable provided construction observation and administration on all private development projects. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1930 - Engineering Services Engineering Services 69,864.04 34,500.71 48,000.00 53,000.00 54,800.00 -3.40% Total Engineering Services 69,864.04 34,500.71 48,000.00 53,000.00 54,800.00 -3.40% PERFORMANCE INDICATORS 1. Number of CIP projects bid before May 1. 2. % of Projects completed within Budget. 3. Number of working days for development/application plan reviews. City of Lake Elmo 2015 Budget 36 CITY HALL MISSION STATEMENT To provide a clean, safe, and welcoming facility for staff to achieve a high level of productivity and the public to receive excellent, efficient, and effective local government services DISCUSSION OF SIGNIFICANT 2014 EVENTS  The City Hall Annex HVAC unit needed unexpected repair due to stress caused by cold winter. This effect is exacerbated by the fact that the mobile home trailer used by the City is not well insulated. The thermostat is also not programmable.  The entire sidewalk surrounding City Hall had to be replaced for safety reasons due to the concrete completely failing. The decorative concrete previously installed suffered from severe spalling. Repair cost was as much as replacement.  The ramp to the City Hall Annex has to be replaced for safety reasons due to it rusting out. If the building is no longer used, this repair is not needed.  Cleaning service was replaced to a higher quality provider for minimal increase in cost.  Plumbing services were used three times due to condition of septic system.  Two Yale Mechanical service calls. One on HVAC for each building. Primary Concentration for Remainder of year:  Lease space for Administration/Finance/Communication departments in Brookman II property next door. This would prolong the ability to use the City Hall space for several more years and provide more sufficient room for city services.  Eliminate the Annex due to age, condition, and inefficiencies. This alone would save utility/maintenance expenditures. MAJOR 2015 OBJECTIVES Replace City Hall roof due to deterioration. Replace all thermostats with programmable thermostats. Implement better energy saving practices such as controlling thermostat and shutting off electronics and lights when not in use. Replace refuse hauler to recognize cost savings. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 1940 - City Hall Cleaning Supplies 206.17 7.48 25.00 25.00 50.00 -100.00% Building Repair Supplies 369.80 61.53 200.00 200.00 300.00 -50.00% Utilities 10,148.01 10,019.04 13,200.00 11,000.00 6,000.00 45.45% Refuse 1,737.56 1,299.84 1,408.16 1,350.00 353.00 73.85% Repairs/Maint Contractual Bldg 8,504.32 9,233.70 7,200.00 13,700.00 6,000.00 56.20% Repairs/Maint Contractual Equip 3,934.77 5,503.57 2,400.00 2,400.00 7,700.00 -300.00% Facility Lease 0.00 0.00 0.00 7,383.00 29,532.00 -2000.00% Miscellaneous 1,426.29 158.01 300.00 260.00 300.00 -15.38% Total City Hall 26,326.92 26,283.17 27,133.16 37,288.00 50,235.00 -34.72% 37 City of Lake Elmo 2015 Budget PERFORMANCE INDICATORS Target 2015 Scheduled inspections Service Calls Facility cleanings 2 2 52 City of Lake Elmo 2015 Budget 38 SHERIFF’S DEPARTMENT MISSION STATEMENT Mission The mission of the Washington County Sheriff’s Office is to work in partnership with the community to provide quality public safety services in a responsible manner through innovation, leadership and the cooperation of dedicated people. Vision The vision of the Washington County Sheriff’s Office is to create the safest and most crime resistant community in the nation by providing superior public safety services. DISCUSSION OF SIGNIFICANT 2014 EVENTS  The Sheriff’s Office continues to respond to several types of calls in the City. Each call could be considered significant to the person involved in the incident.  The City of Lake Elmo, in cooperation with the Washington County Sheriff’s Department, and the City of Landfall shared services that provided for 24/7 protection for Lake Elmo residents. The Washington County Sheriff’s Departments provides policing services to the City of Lake Elmo at the lowest per capita rate in the East Metro (approx.. $65 per capita). In the past two years, Sheriff’’s Department has concentrated on a zero tolerance traffic speed enforcement that has significantly lowered speed on Highway 5 and CSAH 17. In addition, the Sheriff’s Department focus on community policing has reduced both Part I and Part 2 crimes over the last three years.  The City of Lake Elmo continues to provide office space for the Sheriff’s Department use in both the City Hall complex and Fire Station No. 2  The City of Lake Elmo also partners with the Youth Service Bureau ($5000) to work with at-risk families and teens on early intervention strategies to help build the community and the family. MAJOR 2015 OBJECTIVES  Improve Records Management System  Implement Computer Aided Dispatch (CAD)  Increase Efficiency Law Enforcement Records Management (RMS)  Improve Fire Records Management (FireRMS)  Enhance Case Management/Property & Evidence Tracking  Emphasize State of the Art Law Enforcement Personnel/Training  Utilize Bear Analytics (analytical software) for crime analysis and prevention  Website Posting (community-viewing) DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 2100 - Police Law Enforcement Contract 492,911.43 495,758.76 500,000.00 500,634.22 512,799.40 -2.43% Total Police 492,911.43 495,758.76 500,000.00 500,634.22 512,799.40 -2.43% PERFORMANCE INDICATORS # of ICRs # of Narcotics Cases and Arrest # Part 1 Crimes # Part 2 Crimes # of Motor Vehicle Accidents #DUI and other Traffic Arrest YTD 2014: YTD 2014: YTD 2014: YTD 2014: YTD 2014: YTD 2014: 2319 3 41 192 117 15 39 City of Lake Elmo 2015 Budget FIRE DEPARTMENT MISSION STATEMENT It is the mission of the Lake Elmo Fire Department to serve its customers to the best of their abilities by minimizing loss of life and property for the City of Lake Elmo from fires, man made and natural disasters, possible life threatening situations, medical emergencies, haz-mat, and to assist other emergency agencies. Lake Elmo Fire Department members will perform these services in a safe, timely and courteous manner by maintaining effective fire prevention, emergency response, fire suppression and training, Haz-mat, Fire, Medical and Rescue. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Purchase of 78’ Ladder Truck . This purchase process helped to lay the foundation in the development of a solid plan to deal with aging equipment. The development of this plan will allow for better financial projections, reduced maintenance costs and ensure the delivery of quality service and the safety of our Firefighters.  Inspection/Preplan program is fully implemented and much more structured. Great strides have been made in building relationships with our business community through the process. It is also providing valuable data for not only the FD, but other depts. within the City as well.  Restructured Officers, completed job descriptions and hired new positions. This reorganization should prove to be a more efficient, cost effective model as well as prepare personnel to be better officers in the future.  Unforeseen major repairs to current ladder truck due to its age.  The FD has assumed the duties of all building and grounds maintenance for both stations. Our goal is to improve preventative maintenance, better plan for major expenses and improve the overall appearance of these city facilities. This year’s main focus was Station #2, with improvements to the failing wall, drainage issues and landscaping.  Revaluated purchase of new SCBA’s, extended life by 5 years. Through more in depth research, we were able to move this major purchase out 5 years to free up current CIP funding. While moving out the replacement of SCBA’s, we replaced all of our current SCBA masks to ensure proper fitting and safer equipment for our FF’s at a significant cost savings.  Contracted with Century College to provide Firefighter CEU’s to meet annual NFPA training standards as well as standardize training with neighboring departments. This program will ensure our personnel meet the CEU training requirements for recertification. It will also move toward standardizing training in the area, allow us the opportunity to train with our mutual aid partners and offer greater flexibility in our training schedule.  Continued working with Public Safety Comm. to identify future needs of community, develop plan to deliver services and determine needs of FD to meet demands as it relates to staffing, equipment and infrastructure in the most cost effective way possible. MAJOR 2015 OBJECTIVES  Continue to develop future plans for FD to meet needs of community with the Public Safety Comm.  Continue to improve relationships with neighboring departments to improve training and call response.  Build on current accomplishments as it relates to development of a fiscally responsible and workable plan to address our aging fleet, facility needs, staffing and rising maintenance costs.  Ongoing recruiting efforts to ensure proper staffing of the department.  Continue to improve and build our Inspection/Preplans program. Create more efficiency of inspections, updating data and providing information to personnel as we move forward.  Improve our Fire Prevention program through improved education of the community by partnering and reaching out to community/neighborhood groups. DEPARTMENT BUDGET SUMMARY  Add three Paid On Call Firefighters SMALL TOOLS and EQIPMENT  Update and/or.replace small equipment as needed due to unsafe condition, not meeting the requirements to deliver service and provide for the safety of our personnel.  Replace/update firefighting skid unit in Brush 1. Current skid unit is 25 years old and the reel and hose need to be replaced at a cost of $2000.00. We have seen increased maintenance issues in the last several years. The new unit will allow for greater water capacity and foam capabilities.  Replace 2 current gas monitors due to obsolescence. They are no longer supported by Scott.  Purchase additional gas monitor for the overhaul phase of fires as we have recently learned of the toxic gases and carcinogens emitted from newer construction. City of Lake Elmo 2015 Budget 40  Moved purchase of 1000’ of 5” host from 2014 to 2015. This will coincide with delivery of new truck with 5” hose and replace the old 4” hose sold with old ladder truck.  Replace current traffic safety vests, (non ANSI compliant) that are becoming worn out. New vests will better protect FF’s on roadway incidents and are ANSI compliant. RADIOS  Purchase 6 new pagers to replace of current pagers due to obsolescence on a scheduled plan to allow for better fiscal control. Current pagers are no longer available or supported by Motorola and we have experienced significant issues with the pagers and chargers. REPAIRS/MAINTENANCE BLDGS  Increased costs due to FD taking this on in 2014. Major repairs and improvements at Station #2 due to years of neglect. REPAIRS/MAINTENANCE EQUIPMENT  Contract for hose testing services. This will ensure documented compliance with NFPA and allow for better utilization of limited training time. CONFERENCES and TRAINING  Addition of CPR due to odd year certification  Addition of CEU program with Century College to ensure NFPA compliance and provide documentation tor recertification’s.  No reimbursements have been taken into account as they are unknown at this time.  Here are my proposed budgets for the last 4 years: 2014 – $18,043.60 2013 - $25,151.15 2012 - $27,091.80 2011 - $21,091.80 These numbers are inserted because of the various UNKNOWN’S:  Availability of POC’s to attend training  Amount, if any of reimbursements  Number of new hires LEASING  FYI: We are currently researching the possibility of leasing our smaller vehicles. In the event we move this direction, it could possibly move these items from CIP to Budget. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 2220 - Fire FT Salaries 68,090.25 73,590.58 74,119.04 74,264.00 68,614.00 7.61% PT Salaries 94,810.60 112,026.61 109,455.98 123,120.80 123,120.80 0.00% PERA Contributions 11,535.15 12,280.22 11,785.11 13,351.72 12,116.52 9.26% FICA Contributions 5,214.80 6,317.94 11,381.65 5,509.66 7,633.60 -38.55% Medicare Contributions 2,290.54 2,610.58 2,661.84 2,419.06 2,780.54 -14.93% Health/Dental Insurance 14,647.03 13,704.00 15,990.00 13,704.00 14,243.00 -3.93% Unemployment Benefits 0.00 0.00 0.00 0.00 0.00 0.00% Workers Compensation 8,135.36 8,042.06 9,000.00 9,000.00 9,000.00 0.00% Office Supplies 971.05 3,038.10 500.00 800.00 850.00 -6.25% EMS Supplies 3,111.65 1,155.41 4,900.00 1,700.00 3,400.00 -100.00% Fire Prevention 1,113.98 3,242.62 3,000.00 3,000.00 3,000.00 0.00% Fuel, Oil & Fluids 12,581.13 13,536.74 14,000.00 12,000.00 13,000.00 -8.33% Small Tools & Equip 19,610.48 19,406.26 22,500.00 22,500.00 20,892.30 7.15% 41 City of Lake Elmo 2015 Budget Physicals 7,684.29 2,161.95 6,900.00 4,000.00 3,181.00 20.48% Radio 12,436.50 16,254.83 16,203.04 16,203.00 21,561.50 -33.07% Mileage 0.00 149.44 350.00 150.00 250.00 -66.67% Vehicle Insurance 6,256.90 5,237.00 5,237.00 5,000.00 8,307.00 -66.14% Electric Utility 8,295.76 11,372.86 21,600.00 17,000.00 17,000.00 0.00% Refuse 476.80 779.98 572.16 1,000.00 1,000.00 0.00% Repair/Maint Bldg 5,465.90 14,336.83 12,000.00 12,000.00 2,000.00 83.33% Repair/Maint Equip 35,038.39 24,161.79 41,000.00 41,000.00 33,260.00 18.88% Uniforms 3,395.01 3,977.12 3,000.00 3,000.00 2,500.00 16.67% Miscellaneous 907.95 1,201.51 900.00 1,250.00 1,500.00 -20.00% Dues & Subscriptions 2,966.11 3,247.00 2,200.00 2,235.00 3,508.00 -56.96% Books 0.00 480.94 200.00 102.00 220.00 -115.69% Conferences & Training 11,755.87 13,850.11 6,000.00 11,500.00 12,375.00 -7.61% Conferences & Training Reimb 0.00 0.00 0.00 0.00 0.00 0.00% Total Fire 336,791.50 366,162.48 395,455.82 395,809.24 385,312.25 2.65% PERFORMANCE INDICATORS  Monitor and continue to strive to improve response times.  Reduction in maintenance costs.  Improved confidence and performance of personnel in the performance of their duties. City of Lake Elmo 2015 Budget 42 BUILDING INSPECTIONS MISSION STATEMENT The Department of Building Safety is directed to carry out and maintain, minimum requirements to safeguard the public health, safety, and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to fire fighters and emergency responders during emergency operations. DISCUSSION OF SIGNIFICANT 2014 EVENTS The following areas of work occurred or continue to be pursued in 2014 to serve the community.  Permit software. Analyzed a variety of software intended to increase productivity, enhance required record keeping, and internal and external reporting. Selected Permit Works to use for Lake Elmo. Currently used by the City of Oakdale and in over 40 communities throughout the metro area. Support continues to be exceptional, timely, and professional. All applicable departments will continue to benefit from this investment by the City in serving a variety of areas. This system will also provide analysis of key indicators that can be used to measure various areas of performance.  New workbooks for single family & commercial construction. New and existing workbooks were incorporated into the Cities web site. Providing this information which includes residential and commercial construction requirements, continues to pay dividends with cleaner submittals as many requirements are incorporated with the first submittal, saving both the applicant and the City valuable time.  Informational hand-outs. Continues to be expanded on line. These handouts have proven to be valuable for residents and contractors by providing information regarding code requirements. This is an area of work that remains a priority and will continue to be developed.  Electrical permits. Process moved from State jurisdiction to Local jurisdiction. The State share of revenue has moved to the municipality, service levels remain high and communication between the electrical inspectors and the Building Official are growing stronger. Opportunities to increase service and value are ongoing.  Certification. Obtained special knowledge critical to life safety in the City’s Commercial buildings. Fire Inspector 2 certification was completed through the International Code Council (throughout the metro area few Building Departments big or small have completed this level of skill). The department gained critical understanding of requirements in new, existing, and changes of use code applications  Interdepartmental Coordination. Improved coordination between Building Inspections and the Fire Department. Both departments have embrace the concept that as a team we can provide education, collaboration, service and value in all building related areas.  Code Enforcement. Completed a major overhaul of the City’s code enforcement process which has led to a significant increase in cases being resolved. The process continues to be complaint driven. The building department has placed an emphasis on providing assistance to tax payers in order to find solutions that lead to compliance. Improved process and coordination with other departments on code enforcement matters.  Insurance service organization audit. Preparation is underway for this audit which will be completed later this year. PRIMARY FOCUS FOR REMAINDER OF 2014  Continue to develop relationships with the residents and business owners by actively listening and evaluating merits of concerns, and providing solutions to achieve the mission of the department.  The remainder of 2014 will include preparation and review by ISO, the Minnesota Department of Labor and industry, process refinement, and a continued emphasis of providing value to the community in all applicable department areas. MAJOR 2015 OBJECTIVES  Maintain appropriate staffing levels. Maintain an adequate level of service based on the number of permits being submitted for review. Follow a revenue/cost neutral model for staffing that adds additional staff only when necessary based on the current workload and when supported by an increase in departmental revenues.  Credit card payments. A number of applicants continue to ask for this service. Explore options with finance to implement this service.  Remote inspections. To provide an increase in communication, efficiency and service. This item is incorporated in the proposed 2015 budget.  Training/Education. Intake staff is the first impression to our customers. Specific training will be completed that incorporates the ongoing tools to answer common building related questions accurately and effectively. The number of applicable codes related to building projects is complex, newly listed and labeled products continue to be incorporated into the codes, and the proposed adoption of the 2012 State Building Code in 2015 contains numerous changes to code requirements. In an effort to stay up to date, and provide special knowledge across a number of code areas staff training is critical in providing cost effective solutions to residents and 43 City of Lake Elmo 2015 Budget contractors. Code enforcement is also applicable to this area as many legal factors are present in day to day complaints and communication with the public.  Manage Growth. The building department looks forward to administering, permitting, inspecting, and reviewing 4 to 5 times the current volume according to current pro forma. We will focus on providing great service, value to the customers, and refining processes. A number of new line items are in the proposed budget to assist this increase. Key building indicators will be monitored during this growth; this information will be utilized in determining proposed changes to staffing levels as approved by Council.  Escrow release. Tracking building escrow payments and processing escrow returns is an area of work that is a priority for the department. Continue to monitor the status of each site and properly communicate the requirements to close out escrow accounts to applicants. The department’s goal is to reduce the number of inspections to final a project.  Survey review. The building department will be more involved in this process in 2015 with a goal to reduce the time spent and overall cost per site, while maintaining a minimum set of standards that meet the intent of the City Code requirements. This area will continue to receive support from the Engineering department while the building department takes a more active role in certain aspects of the review process.  Ongoing. Continue to move all day to day processes forward including issuing permits, providing cross training in intake, survey review, and plan revision. Integrate additional staff when indicators such as service levels, valuation, number of inspections, revenue, correlate to such. Review/analyze the permit fee structure, and propose changes based on supporting data. DEPARTMENT BUDGET SUMMARY The proposed budget for the Department of Building Safety is generally based on the following components. 1. Valuation. The budget anticipates a significant increase in overall permit valuation relative to the number of permits, plan reviews, and inspections in 2015 2. Number of dwelling units 163. Based on the current pro-forma and recent subdivision approvals. 3. Number of inspections. Building related and site visits requested by residents that may be related to City code questions. 4. Code enforcement. New line item in the budget, will be used to facilitate code enforcement activities. 5. Service/value levels. This would include such things as time to turn over a permit application, timely inspections as requested by the permit applicants. 6. Administration of the code. The time spent on reporting, monitoring, implementing, and maintaining the various areas of responsibility is critical to achieve the vison of quality and efficiency, while maintaining a broad range of working relationships with a number of Authorities Having Jurisdiction. Some examples would include Met Council, Department of labor and Industry, MDH, Watershed Districts, and Washington County. 7. Inspection personnel & support. Expected growth in new home construction, revenue, staffing, and support services. The additional contract services dollars added to the proposed budget will allow the City to be flexible in staffing, efficient with dollars, maintain service levels, and adjust to changing conditions. The above list is not all inclusive; however, these indicators will be utilized as a guide in estimating staffing proposals to City Council and may be modified as needed or directed. Many indicators provide the foundation for Lake Elmo to be a leader in quality construction in the east metro. In addition, commercial activity continues to increase. The Department of Building Safety looks forward to maintaining internal and external partnerships, welcoming new residents, and serving the vision of the City Council. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 2400 - Building Inspection FT Salaries 68,649.61 86,459.02 95,992.00 90,986.25 149,603.55 -64.43% PT Salaries 0.00 0.00 0.00 0.00 0.00 0.00% PERA Contributions 4,099.95 6,268.41 6,959.42 6,466.79 10,846.40 -67.72% FICA Contributions 4,109.23 5,033.86 5,951.50 5,196.65 9,276.29 -78.49% Medicare Contributions 961.03 1,177.22 1,391.88 1,215.22 2,169.71 -78.51% Health/Dental Insurance 8,831.88 16,968.00 24,102.00 16,968.00 28,486.00 -67.88% Unemployment Benefits 0.00 0.00 0.00 0.00 0.00 0.00% Workers Compensation 1,777.25 397.88 397.88 500.00 1,000.00 -100.00% Office Supplies 1,568.79 880.02 1,447.44 1,447.00 2,100.00 -45.13% City of Lake Elmo 2015 Budget 44 Printed Forms 0.00 146.61 146.61 147.00 700.00 -376.19% Fuel, Oil & Fluids 0.00 267.67 465.56 466.00 5,500.00 -1080.26% Engineering 13,453.87 11,644.73 10,000.00 8,000.00 9,000.00 -12.50% Surcharge Pmts 0.00 0.00 0.00 0.00 0.00 0.00% Inspector Contract Services 23,244.30 6,069.50 3,281.50 7,462.00 65,000.00 -771.08% Mileage 2,259.41 1,103.68 600.00 600.00 7,700.00 -850.00% Insurance 255.00 340.00 340.00 340.00 900.00 -164.71% Repairs/Maint Equip 571.76 563.28 300.00 300.00 2,300.00 -666.67% Uniforms 0.00 86.38 0.00 425.00 850.00 -100.00% Miscellaneous 825.95 1,497.49 500.00 500.00 650.00 -30.00% Dues & Subscriptions 175.00 0.00 0.00 0.00 700.00 -700.00% Books 1,113.09 198.24 308.24 308.00 3,000.00 -874.03% New Truck 0.00 0.00 0.00 0.00 23,000.00 23000.00% Conferences & Training 695.00 837.40 690.00 690.00 2,775.00 -302.17% Total Building Inspections 132,591.12 139,939.39 152,874.03 142,017.91 323,558.69 -127.83% PERFORMANCE INDICATORS 1. Complete plan reviews with-in 5 days of complete submittal on new single family home construction. 2. Continue to operate revenue neutral and in compliance with all regulatory agencies as applicable. 3. Track site visits related to City code complaints. 4. Follow up on significant code complaints with-in 2 business days. 45 City of Lake Elmo 2015 Budget ANIMAL CONTROL MISSION STATEMENT To protect the health and safety of Lake Elmo residents, and to protect animals and promote their humane treatment. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Picked up/impounded over 22 at large cats and dogs through June 30, 2014.  Issued 140 dog licenses.  Amended City Code to allow livestock on parcels 5 acres or more and the keeping of chickens and bees on smaller residential lots. Issued 7 Bee Keeping permits & 4 Chicken Keeping permits in first year of new regulations.  Held discussion with Animal Humane Society and Lake Elmo Public Safety Committee on the issue of feral cats. Primary Concentration for Remainder of year:  Continue to recover pick-up/impoundment fees.  Continue to educate public of the benefits of proper animal care.  Send reminder notices to all currently licensed dog owners for 2015 license renewals.  Re-examine the dog license fee to ensure that Lake Elmo is appropriately charging its residents. MAJOR 2015 OBJECTIVES  Increase dog licensure compliance. Educate public, especially new developments on dog license requirements.  Continue to partner with the Animal Control Officer, Animal Humane Society, and Washington County Sheriff’s Office.  Find solution to control the city’s at-large cat occurrence. DEPARTMENT BUDGET SUMMARY 2102 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 2700 – Animal Control Printed Forms 0.00 0.00 0.00 0.00 0.00 0.00% Contract Services 1319.02 11,209.93 5,842.08 7,000.00 6,000.00 14.29% Miscellaneous 0.00 2,518.59 440.00 350.00 800.00 -128.57% Total Animal Control 1,319.02 13,728.52 6,282.08 7,350.00 6,800.00 7.48% PERFORMANCE INDICATORS Target 2015 Pick-up/Impound At-Large Animals 35 Licensed Dogs Issued 150 Chicken/Bee Permits Issued 10 City of Lake Elmo 2015 Budget 46 STREET MAINTENANCE MISSION STATEMENT To plan and implement a preventative maintenance and repair program to keep the streets of Lake Elmo in a safe and serviceable traffic condition. DISCUSSION OF SIGNIFICANT 2014 EVENTS  In an effort to comply with the City Council’s wishes to improve the quality of the streets, the Department of Public Works increased the use of preventive maintenance of the City’s newer pavements through crack sealing and seal coating; and engaged more extensive and updated pavement repairs using spray patching/pot hole patching and mill and overlays. In addition, the street improvement program was continued by completing street reclaims and reconstruction projects consistent with the planned capital projects for 2014. Overlays, reclaims and reconstruction projects were funded through capital borrowing and consistent with the City Engineer’s analysis.  Lake Elmo’s street infrastructure currently requires approximately 200-240 tons of hot mix patching per year to create a functional drive-able environment. In addition Lake Elmo must apply preventative maintenance (crack sealing and seal coating) to approximately 6-8 miles of streets each year just to keep pace with needs. Areas seal coated included Hudson Boulevard, Tapestry Subdivision, Farms of Lake Elmo, and Tablyn Park. In 2013, the DPW used 247 tons of hot mix to repair roads and seal coated over 6 miles of road. In 2014, it is estimated that the DPW will use a little over 200 tons of hot mix and will seal coat over 8.2 miles. In addition, the City rented a spray patching machine to expedite street repair that did not need the detail of attention as conventional pothole patching.  In terms of capital improvements, Deer Pond Trail (In the Tri-Lakes area) will be reconstructed, the Packard Park neighborhood will be reclaimed and Manning Trail will be reconstructed. A mill and overlay will be completed on 20th Street North in an effort to defer the complete reconstruction for 7-10 years. Finally, as part of the sanitary sewer project, it is anticipated that 39th Street (north of Highway 5) will be constructed.  The DPW spends a portion of time (approx10 %) on road signage and right of way maintenance to affect proper traffic flow and reduce obstructions in vision triangles. MAJOR 2015 OBJECTIVES  Per the City Council Retreat of 2013, the Department of Public Works is formalizing its crack filling & seal coating function by including a specific line item in its operational budget of $211,000. This will secure that a sufficient effort is made each year to prioritize maintenance expenditures on preventive maintenance best practices as the City’s newer pavements begin to age and the City’s need to maximize the useful service life of each street. In addition, the staff of the DPW will begin to take on the responsibility of an annual road inspection program using PASER pavement rating system to insure that proper maintenance attention will be given to the roads that are in most need. Through a recommendation from the City’s consulting engineers a new oil and rock consistency (first used in 2014) will be evaluated against past seal coating work to determine durability and efficacy.  It is anticipated that at least 5 miles of new roads will be added in the community via new development (see the capital improvement portion of this budget for details). Two major roadways (5th Street and the Village Parkway will commence construction and a remodel of 30th Street and Laverne Avenue will take place in concert with Washington County’s reconstruction of Lake Elmo Avenue (CSAH 17).  The DPW will also implement an infrastructure tracking software (BEEHIVE) to effectively manage all pertinent data related to street, utility, right of way, storm water, and other construction “as builts” needed to properly maintain the fixed assets of the City of Lake Elmo at-large. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 3120 - Streets Fuel, Oil & Fluids (Above!) 0.00 0.00 0.00 0.00 0.00 0.00% Equipment Parts 1,575.24 4,125.66 1,200.00 1,000.00 3,000.00 -200.00% Street Maintenance Materials 6,616.64 23,787.16 12,000.00 10,000.00 20,000.00 -100.00% Seal Coating/Crack Filling 175,000.00 160,000.00 160,000.00 195,000.00 186,578.00 4.32% Sign Repair Materials 0.00 1,479.16 0.00 2,000.00 2,500.00 -25.00% 47 City of Lake Elmo 2015 Budget Contract Services 6,483.62 11,728.05 1,200.00 1,500.00 8,000.00 -433.33% Repairs/Maint Equipment 685.05 3,295.86 2,400.00 2,000.00 2,500.00 -25.00% Total Streets 190,360.55 204,415.89 176,800.00 211,500.00 222,578.00 -5.23% PERFORMANCE INDICATORS Strategic Outcomes #tons of hot mixed asphalt used #miles of seal coating #miles of reconstruction #miles of reclaims #miles of overlay #miles of new construction FY 2014 200 8.2 1.4 1.2 0.9 0.75 Target 2015 180 10.0 (inc. Demontreville w/ County 1.9 0.0 .25 2.86 (inc. new development) City of Lake Elmo 2015 Budget 48 ICE & SNOW REMOVAL MISSION STATEMENT To create a safe traveling environment for motorists through the timely and efficient preparation, salting, and clearing of ice /snow during the winter months. DISCUSSION OF SIGNIFICANT 2014 EVENTS  The City of Lake Elmo effectively cleared its roadways of ice and snow achieving a composite performance average of 8.4 on a 10 .0 scale (see attached rating sheet) over the course of 17 (2’ or more snow / ice covered) measureable events.  Due to efficient snow clearing there was no reportable motor vehicle accidents or major property damage reported due to DPW actions.  The City improved clearance in contract service areas by the replacement of a previous contractor with a more knowledgeable service provider.  The City stayed within budget parameters for the utilization for salt and plow blades, with equipment repairs focused only on normal wear and tear on vehicles due to use and exposure to the elements. Lake Elmo has approximately 2 ton of salt in reserve after the winter season and continues to utilize state contract pricing / sources to insure supply. MAJOR 2015 OBJECTIVES  The City of Lake Elmo Department of Public Works Department looks to improve on its 2014 – 2015 composite performance average by improving on mobilization process, better utilizing personnel in the clearance of dead ends and cul de sacs and eliminating a contract services by employing an additional plow truck (Purchased in 2014).  Performance objectives include: o Maintain orderly traffic movement on all collectors and arterials streets during a storm o Plow all streets within 8 hours during a 2” snowstorm and removed accumulated snow from vision triangles o Review snow plow routes for the best staff fit by experience and training o Evaluate use of salt brine and pre-wetting agents for better now and ice control o Install back-up cameras for traffic safety o Develop demonstration (T & M ) program for the clearance of critical multi model trails in anticipation of 5th Street and the  Village parkway. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 3125 - Ice & Snow Removal Landscaping Material 130.06 103.38 0.00 0.00 0.00 0.00% Sand/Salt 36,740.57 99,952.68 70,000.00 70,000.00 80,000.00 -14.29% Contract Services 4,432.50 9,195.25 20,000.00 10,000.00 6,000.00 40.00% Repairs/Maint Equipment 4,016.83 17,396.36 6,000.00 2,500.00 9,500.00 -280.00% Total Ice & Snow Removal 45,319.96 126,647.67 96,000.00 82,500.00 95,000.00 -15.15% PERFORMANCE INDICATORS Taxpayer Service Impacts # of Major Plow Events Scoring 8.0 # of Minor Plows / Salt Events Scoring 8.0 # of Maiboxes Replaced Due to Snow Removal $$ of Property Damage Due to Snow Plowing Target 2015 8 22 5 <$1000 49 City of Lake Elmo 2015 Budget RECYCLING MISSION STATEMENT To protect the health and safety of Lake Elmo residents, and to promote recycling and renewable energy in the community. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Obtained $15,500.00 in recycling grant money from Washington County.  Updated and revamped recycling info on the City website.  Purchased 500 Compact Fluorescent Light Bulbs to distribute to residents.  Sent out recycling literature to promote and encourage recycling and energy consumption.  Participated in City’s “Breath of Fresh Air” campaign by sponsoring air fresheners with recycling info newsletter.  Purchased 100% recycled office paper.  Held Clean Up Day during summer.  Moved to two-day garbage pickup in the City. Primary Concentration for Remainder of year:  Continue to educate the public and promote the benefits of recycling and energy consumption. MAJOR 2015 OBJECTIVES  Obtain same level of recycling grant funding for 2015.  Continue to partner with Washington County on how best to promote and increase the recycling participation rate.  Hold Lake Elmo Clean Up Day in June.  Reduce amount of office paper used by increasing paperless government. Increase percentage of recycled paper purchased.  Work with haulers and the public to increase residential recycling rate. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 3200 – Recycling Recycling Supplies 2,407.52 3,584.25 3,400.00 3,400.00 3,500.00 -2.94% Newsletter 0.00 0.00 0.00 0.00 0.00 0.00% Miscellaneous 10,368.72 4,000.00 4,000.00 2,000.00 6,000.00 -200.00% Total Recycling 12,776.24 7,584.25 7,400.00 5,400.00 9,500.00 -75.93% PERFORMANCE INDICATORS Target 2015 Recycling Awareness/Promotion Events 4 Gross Weight Recycled 780 Tons Residential recycling rate 75% Community pounds per household 650 City of Lake Elmo 2015 Budget 50 PARK OPERATIONS MISSION STATEMENT Park Operations serve as a sub-function of the Department of Public Works and primarily performs day to day maintenance duties for the Lake Elmo Park Commission. Duties include mowing, equipment maintenance and installation, field maintenance, right of way maintenance, rain garden maintenance, safety compliance, path mowing & grooming and other necessary upkeep tasks. DISCUSSION OF SIGNIFICANT 2014 EVENTS In 2014, Park Operations installed new park signs in all of the major parks as part of a park awareness program. In addition, maintenance was completed on all parks with a particular attention to mowing & trimming – including tree pruning and brushing. New park equipment, with safety zones, was installed at Pebble Park and Sanctuary Park. Park Operations assisted in (3) special summer events, the Huff N Puff tournament , and Light Up Lake Elmo. In the Fall of 2014, staff hosted its first Volksmarcht in Sun Fish Lake Park and held snow sledding bonfires at the same. A security gate was constructed at Sunfish Lake for safety purposes. The purchase of new equipment allowed the City to groom trails in Sunfish Lake for the first time. MAJOR 2015 OBJECTIVES Major objectives in 2015 include:  Installation of new equipment in (2) parks  Reconfiguration of Tablyn Park Master Site  Opening up Reid Park for visibility  Establishing a Bee Safe IPM pesticide plan for weed control  Emerald Ash Borer Surveillance Plan DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 5200 – Parks & Recreation FT Salaries 65,432 90,807 121,950 68,884 77,847 13.01% PT Salaries 24,603 17,974 20,000 15,783 6,820 -56.79% PERA Contributions 5,897 7,151 9,566 8,003 5,644 -29.47% FICA Contributions 5,399 6,500 8,181 6,802 5,249 -22.83% Medicare Contributions 1,263 1,520 1,913 1,591 1,228 -22.81% Health/Dental Insurance 11,636 4,727 14,376 5,513 19,940 261.69% Workers Compensation 2,545 4,106 4,500 4,000 4,000 0.00% Shop Materials 258 924 0 400 500 25.00% Chemicals 320 741 0 600 750 25.00% Equipment Parts 2,081 2,322 24 5,000 2,000 -60.00% Building Repair Supplies 0 11 0 2,500 500 -80.00% Landscaping Materials 2,926 2,781 0 5,000 3,000 -40.00% Small Tools & Minor Equipment 624 2,277 1,888 1,200 1,000 -16.67% Mileage 0 0 0 0 0 0.00% Insurance 3,364 3,683 6,683 3,200 3,200 0.00% Electric Utility 6,686 8,089 9,840 8,000 8,500 6.25% Refuse 2,117 2,494 2,500 2,500 2,500 0.00% Repairs/Maint Bldg 340 335 1,724 2,500 1,000 -60.00% Repairs/Maint Imp Not Bldgs 3,690 3,991 274 6,000 2,500 -58.33% 51 City of Lake Elmo 2015 Budget Repairs/Maint Eqpt 23 0 0 2,200 1,500 -31.82% Rentals - Buildings 5,229 5,263 3,600 6,500 4,600 -29.23% Miscellaneous 235 649 1,220 0 750 100.00% Total Parks & Recreation 144,668 166,343 205,239 156,175 153,028 -2.02% PERFORMANCE INDICATORS New Park Equipment is Installed for Taxpayer Use Tablyn Park Re-configured by June Reid Park opened up and sign reinstalled by June Execution of Forest Maintenance Plan for Sunfish Lake Park City of Lake Elmo 2015 Budget 52 TECHNOLOGY SERVICES MISSION STATEMENT To provide and coordinate technology support for desktop, mobile, software applications, and communications hardware and software for all City Staff; to develop and implement Citywide IT policies and procedures; and recognize and recommend new developments and innovation in technology in order to improve service to the community. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Maintain membership in Metro-INET consortium to use shared services for IT support.  Coordinated the replacement of seven workstation PCs that were still using Windows XP. Due to Microsoft ending support and security for this operating system, these machines had to be replaced.  Coordinated the upgrade and replacement of SCADA system, including new radios.  Coordinated the upgrade of Laserfiche United software to Laserfiche Rio.  Replaced two failing analog phone lines at Fire Station #2 with less expensive IP phones lines thereby also adding them to the network. Primary Concentration for Remainder of year:  Monitor the Comcast franchise agreement negotiations to determine the future use of INET. If Comcast does not renew the inclusion of the free use of the INET fiber optic wires, the City will be forced to find an alternative solution. This is especially important to maintain the level of service provided to the public and for staff’s ability to continue processing large data files.  Implement electronic packets for the City Council. This will save hundreds of hours a year in staff time meeting preparation, as well as immensely reduce the paper use expense.  Revise and implement email retention policy.  Work with Metro-INET to establish IT services to new leased space to maintain current level of service to public.  Implement new Beehive Infrastructure Asset management software. MAJOR 2015 OBJECTIVES  After successfully implementing electronic packets for the City Council, expand option to the Planning Commission and meeting staff.  Implement the use of mobile tablet technology in the field.  Replace two workstation PCs due to age and older operating systems. Add more flexible computing options for new staff based on job function.  Add Code Enforcement and Planning modules to Permitworks software. Both of these modules will allow staff to better serve the public and deliver better tracking.  Develop and follow five-year equipment replacement schedule for all hardware.  Depending on the status of the Comcast Franchise Agreement, the City may have to contract directly with Comcast for the use of their fiber.  Plan on how to achieve secure and stable connectivity for all City facilities.  Increase use of smart phone devices and mobile technology to maximize employee productivity.  Establish uniform and best practice IT policies. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change IT & Telephone - All IT-Hardware 0.00 0.00 0.00 9,500.00 25,100.00 -164.21% IT-Software 0.00 0.00 0.00 17,742.16 16,000.00 9.82% IT-Support Services 29,957.27 31,666.34 46,330.00 31,000.00 36,000.00 -16.13% IT-Networking 0.00 0.00 0.00 16,000.00 7,800.00 51.25% 53 City of Lake Elmo 2015 Budget INET Contingency 0.00 0.00 0.00 0.00 0.00 0.00% Telephone 19,296.42 21,249.03 24,411.31 24,411.31 24,660.00 -0.20% Total IT & Telephone 49,253.69 52,915.37 70,741.31 98,653.47 109,560.00 -11.06% PERFORMANCE INDICATORS 2014 Target 2015 Number of PCs replaced 7 2 Number of PCs supported 32 35 Number of Exchange users 45 50 Number of Supported Mobile Devices 12 37 City of Lake Elmo 2015 Budget 54 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. Development Fund 2. Event Fund 3. Library Fund Annual appropriated budgets are adopted during the year for the city’s special revenue funds. 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. DEVELOPMENT FUND (203) In the past, a development special revenue fund was created in the City’s financial records to account for major developer-related projects. This fund will be used to account for costs associated with development related revenue and expenses. EVENT FUND (204) This fund was created to account for community event activities to bring together the residents of Lake Elmo. Events during 2014 included:  Welcome Back Summer  Lake Elmo Street Dance  Battle of the Bands  Lake Elmo Volksmarch  Light Up Lake Elmo REVENUES & OTHER FINANCING SOURCES  Donations (36230) Public and private donations to be used in funding the costs of larger special events including Light Up Lake Elmo. EXPENDITURES & OTHER FINANCING USES  A variety of line items listing the projected expenditures needed in preparation for and during the various special events. LIBRARY FUND (206) BUDGETARY OBJECTIVE This fund was created to account for activities of the local Lake Elmo library 55 City of Lake Elmo 2015 Budget REVENUES & OTHER FINANCING SOURCES • Current Ad Valorem Taxes (31010) An annual special property tax levy will be levied by the City for library activities at the direction of the City council. EXPENDITURES & OTHER FINANCING USES • A variety of line items listing the projected expenditures needed in preparation for and operations of the library. LIBRARY FUNDS MISSION STATEMENT To enrich both the individual and the larger Lake Elmo Community by assisting people in their access to and use of information, ideas, education and programming. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Added access to e-books for all cardholders  Expanded usable library space to include a 600 sq. ft. children’s room  Doubled library card holders in 12 month period (May 2013 to May 2014)  Added 5,007 items in 12 month period (May 2013 to May 2014) – art work, books, DVDs, CDs, magazines, etc.  Program attendance through May: 1,008 Future plans for 2014:  Continue expanding usable library space to allow for larger collection and to meet program space needs (Suite 190)  Expand e-book and physical library collection to meet the expanding expectations of our community  Hire new library director and part-time staff  Add e-resources (databases, e-magazines, streaming music, etc.) to meet the growing demands of our community  Make building repairs as needed (gutters, plumbing, cellar drainage)  Reconfigure circulation room to reduce congestion MAJOR 2015 OBJECTIVES  ADA accessibility modifications: restroom, entryway, interior doors  Continue to provide valuable online resources (e-books, databases, etc.)  Provide high-quality programming to our community: adults and children  MELSA membership  Add library service hours: evenings and weekends DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change 206 –Library Fund PT Salaries 0.00 0.00 23,000.00 0.00 16,000.00 -100.00% FT Salaries 7,595.00 16,901.13 35,200.00 38,031.18 45,000.00 -18.32% PERA Contributions 518.02 1,225.27 2,552.00 2,757.26 4,422.50 -60.39% FICA Contributions 470.89 1,003.53 3,608.40 2,357.93 3,782.00 -60.39% Medicare Contributions 110.13 234.71 843.60 551.45 884.50 -60.39% Health/Dental Insurance 0.00 2,176.00 13,605.00 11,968.00 11,987.00 0.00% Unemployment Benefits 0.00 0.00 0.00 0.00 0.00 0.00% Workers Compensation 0.00 0.00 1,000.00 0.00 350.00 -100.00% Library svcs supplies 1,109.79 0.00 0.00 0.00 1,100.00 -100.00% City of Lake Elmo 2015 Budget 56 Office Supplies 3,071.41 2,397.34 5,000.00 4,282.30 4,100.00 4.26% Library Collection Maintenance 1,618.43 5,337.86 20,000.00 33,319.29 49,700.00 -49.16% Engineering/Legal Services 3,503.00 3,240.50 500.00 851.00 2,000.00 -135.02% Contract Services 21,100.00 4,199.95 4,000.00 1,680.00 3,000.00 -78.57% Telephone 1,001.37 1,477.29 1,400.00 1,422.96 1,600.00 -12.44% Internet 215.70 447.35 600.00 672.40 1,000.00 -48.72% Information Technology 3,170.00 4,329.72 13,000.00 5,687.16 3,220.00 43.38% Insurance 0.00 2,364.65 2,500.00 2,500.66 2,700.00 -7.97% Utilities 2,589.38 7,655.67 7,000.00 7,126.70 7,550.00 -5.94% Refuse 119.59 780.56 800.00 536.14 550.00 -2.59% Repair/Maint Bldg 4,483.11 6,818.66 8,000.00 27,126.99 14,000.00 48.39% Repair/Maint NOT Bldg 0.00 112.50 52,748.00 8,900.00 0.00 100.00% Repair/Maint Equip (non-LH Impr) 1,130.08 1,136.98 2,500.00 0.00 0.00 0.00% Library Card Reimbursements 0.00 31,780.22 39,000.00 24,514.95 24,000.00 2.10% Miscellaneous 35,911.27 280.08 30,000.00 493.57 2,000.00 -2000.00% Building Purchase Repmt 118,560.20 118,560.20 0.00 0.00 0.00 0.00% Building-Property Tax 0.00 21,232.20 0.00 2,526.00 2,600.00 -2.93% Subscriptions 45.00 1,370.88 0.00 2,061.55 0.00 100.00% Conferences & Training 1,174.23 371.33 0.00 730.00 2,500.00 -242.47% Programs 0.00 0.00 0.00 2,410.00 7,500.00 -211.20% Interest Expense 2,874.33 2,354.85 0.00 0.00 0.00 0.00% Internal charges 2,828.57 1,681.27 1,500.00 1,198.00 1,600.00 -33.56% Total Library 213,199.50 239,470.70 268,357.00 183,705.50 213,146.00 -16.03% PERFORMANCE INDICATORS  Number of programs and attendance 10% growth  Circulation and door count 10% growth  Permanent building improvements completed  Decrease in number of reimbursed paid cards 57 City of Lake Elmo 2015 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 eight debt service funds with outstanding long-term debt: 2006 G.O. Equipment Certificates of Indebtedness 2009A G.O. Refunding Bonds (2001) 2009B G.O. Improvement Bonds 2010A G.O. Improvement Bonds 2011A G.O. Improvement Bonds 2012A G.O. Refunding Bonds 2012B G.O. Improvement Bonds 2013A G.O. Improvement Bonds 2014A G.O. 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. 2006 G.O. EQUIPMENT CERTIFICATES OF INDEBTEDNESS (314) BUDGETARY OBJECTIVE In order to finance the acquisition of capital equipment, including a fire truck, the 2006 G.O. Equipment Certificates of Indebtedness were issued in the amount of $443,000, payable through 2015. To repay the debt, an annual property tax levy will be levied by the City with a final payment of $52,000 due - 2015. This fund is responsible for the retirement of the general obligation equipment certificates. REVENUES & OTHER FINANCING SOURCES Current Ad Valorem Taxes (31010) To repay the equipment certificates, an annual property tax levy will be levied by the City through 2015, averaging approximately $51,000. DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $52,000 $2,080 TOTAL: $52,000 $2,080 City of Lake Elmo 2015 Budget 58 2009A G.O. REFUNDING BONDS (2001) (315) The $535,000 2009 G.O. Refunding Bonds were issued in 2009 to refund $525,000 of the 2001 G.O. State Aid and Improvement Bonds. The 2001 bonds were designated as state aid bonds in 2001. Annual appropriations of Municipal State Aid (MSA) are to be received by the City from the State of Minnesota in amounts necessary to make debt service payments on the bonds through 2016. This fund is responsible for the retirement of the general obligation refunding bonds. REVENUES & OTHER FINANCING SOURCES  MSA Grant (33426) Municipal State Aid (MSA) appropriations are to be received by the City from the State of Minnesota in amounts necessary to make debt service payments on the bonds through 2016. 2009B G.O. IMPROVEMENT BONDS (316) BUDGETARY OBJECTIVE In order to finance 2009 street improvements and the Tablyn Park Entrance project, the 2009 G.O. Improvement Bonds were issued in the amount of $575,000, payable through 2020. To repay the debt, an annual property tax levy will be levied by the City through 2019, averaging approximately $50,000. Additionally, special assessments of approximately 30% of the 2009 street improvements costs were levied against benefited property owners in 2010 for payments beginning in 2011. 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 2019, averaging approximately $50,000.  Special Assessments (36100) These assessments were levied against benefited property owners in 2010 for payments beginning in 2011. 2010A G.O. IMPROVEMENT BONDS (317) BUDGETARY OBJECTIVE In order to finance 2010 street improvements, the 2010 G.O. Improvement Bonds were issued in the amount of $710,000, payable through 2021. To repay the debt, an annual property tax levy will be levied by the City through 2020, averaging approximately $60,000. Additionally, special assessments of approximately 30% of the 2010 street improvements costs were levied against benefited property owners in 2011 for payments beginning in 2012. 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 2020, averaging approximately $60,000. DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $70,000 $4,550 2016 $70,000 $2,100 TOTAL: $140,000 $6,650 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $60,000 $9,363 2016 $60,000 $8,163 2017 $60,000 $6,663 2018-2020 $190,000 $8,524 TOTAL: $470,000 $32,713 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $70,000 $10,653 2016 $70,000 $9,550 2017 $70,000 $8,255 2018-2021 $295,000 $16,066 TOTAL: $505,000 $44,524 59 City of Lake Elmo 2015 Budget  Special Assessments (36100) These assessments were levied against benefited property owners in 2011 for payments beginning in 2012. 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  Current Ad Valorem Taxes (31010) To repay the bonds, an annual property tax levy will be levied by the City from 2015 through 2024 (averaging approximately $170,000). 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 $76,000. 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 $76,000.  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. DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $150,000 $44,208 2016 $150,000 $42,108 2017-2021 $805,000 $162,736 2022-2025 $730,000 $46,345 TOTAL: $1,835,000 $295,397 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $80,000 $14,720 2016 $80,000 $13,720 2017 $435,000 $42,899 2018-2021 $95,000 $1,449 TOTAL: $690,000 $72,788 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $150,000 $165,250 2016 $195,000 $86,044 2017 $190,000 $82,144 2018 $215,000 $78,344 2019-2030 $3,435,000 $539,290 TOTAL: $4,185,000 $951,072 City of Lake Elmo 2015 Budget 60 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 2021, averaging approximately $85,000. 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 $85,000.  Special Assessments (36100) These assessments are projected to be levied against benefited property owners in 2012 for payments beginning in 2013. 2013A G.O. IMPROVEMENT BONDS (322) To save bonding costs, all necessary 2013 bonding was done through one bonding release. As a result there are three very distinctive components of this bond. SECTION 34 (100% ASSESSED) BUDGETARY OBJECTIVE In order to initiate the Section 34 development project, a bond had to be obtained to cover three key components of that project. G.O. Improvement bonds were issues in the amount of $5,740,000 payable through 2033. The sewer and water funds will be recovered at the time the development occurs. 100% of the Water and Sewer infrastructure costs will be paid by developers through levied assessments in 2013 for payments beginning in 2014. This fund is responsible for the retirement of the general obligation bonds. REVENUES & OTHER FINANCING SOURCES  Special Assessments (36100) - These assessments were levied against benefited property owners in 2013 for payments beginning in 2014. The assessments are considered a lien on the property with the County and will continue for 15 years or until the amount is paid in full (due in full if property is sold). WATER BUDGETARY OBJECTIVE This debt was incurred to fund the remaining portion of the Keats Watermain Project and Well #4 and Pumphouse #4. 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.  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 2015 $80,000 $10,270 2016 $85,000 $9,751 2017 $85,000 $9,114 2018-2023 $540,000 $29,356 TOTAL: $790,000 $58,491 SECTION 34 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $105,000 $40,205 2016 $105,000 $38,105 2017 $105,000 $36,005 2018-2028 $1,240,000 $229,862 TOTAL: $1,555,000 $344,175 WATER DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $50,000 $28,203 2016 $50,000 $27,203 2017 $50,000 $26,203 2018-2028 $815,000 $241,301 TOTAL: $965,000 $322,910 61 City of Lake Elmo 2015 Budget SEWER BUDGETARY OBJECTIVE This debt was incurred to fund the Lake Elmo Avenue Sewer. 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 fund revenue. 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 2028. 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 2028, averaging approximately $230,000.  Special Assessments (36100) These assessments are projected to be levied against benefited property owners in 2013 for payments beginning in 2014. 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 2013 for payments beginning in 2014 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 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $150,000 $84,063 2016 $155,000 $81,063 2017 $155,000 $77,963 2018-2028 $2,415,000 $719,271 TOTAL: $2,875,000 $962,360 DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $0 $70,413 2016 $180,000 $68,613 2017 $210,000 $64,713 2018-2028 $2,510,000 $421,943 TOTAL: $2,900,000 $625,682 WATER DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $0 $65,671 2016 $130,000 $64,371 2017 $155,000 $61,521 2018-2028 $2,260,000 $450,305 TOTAL: $2,545,000 $641,868 City of Lake Elmo 2015 Budget 62 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 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 SEWER DEBT PAYMENT SCHEDULE YEAR PRINCIPAL INTEREST 2015 $0 $21,649 2016 $45,000 $21,199 2017 $50,000 $20,249 2018-2030 $745,000 $147,980 TOTAL: $840,000 $211,077 City of Lake Elmo Debt Service Payments (P+I) Roll up Updated 12/29/14 2015 - 2033 Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Pay Fund Original Bond 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total EXISTING DEBT SERVICE General Fund (Levy-101)10 year avg 627,642 755,809 779,814 777,218 768,516 768,519 645,003 651,945 553,886 456,323 364,790 172,325 172,750 168,100 168,275 167,888 0 0 0 0 8,540,953 Water Fund (601)15 year 500,142 593,042 604,699 626,206 617,063 609,382 595,261 667,429 666,185 648,371 660,072 651,222 661,749 667,338 616,747 594,826 56,200 54,200 57,200 0 10,552,736 Sewer Fund (602)15 year 326,390 372,347 372,703 373,010 368,217 371,199 366,277 363,798 338,079 331,433 329,533 322,559 320,498 315,311 243,891 240,938 168,800 172,800 166,400 0 6,102,211 Storm Water Fund (603)15 year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Debt Service 1,454,173 1,721,198 1,757,216 1,776,434 1,753,795 1,749,100 1,606,540 1,683,173 1,558,150 1,436,127 1,354,395 1,146,106 1,154,997 1,150,749 1,028,913 1,003,651 225,000 227,000 223,600 0 25,195,899 POTENTIAL NEW DEBT SERVICE (2015-2019) General Fund (Levy-101)10 year avg 0 133,101 430,381 808,307 1,194,215 1,196,251 1,160,780 1,125,309 1,089,838 1,054,368 1,018,897 881,041 626,159 323,843 29,046 0 0 0 0 0 11,071,536 Water Fund (601)15 year 0 114,045 264,540 322,163 400,048 759,831 740,066 720,302 700,537 680,773 661,009 641,244 625,070 605,306 585,541 565,777 467,361 347,369 293,822 230,597 9,725,400 Sewer Fund (602)15 year 0 402,499 394,172 439,178 429,517 419,856 410,195 400,534 390,873 381,212 371,551 361,890 352,229 342,568 332,908 323,247 36,000 34,667 0 0 5,823,095 Storm Water Fund (603)15 year 0 31,676 64,335 97,867 132,164 165,479 161,219 156,959 152,699 148,439 144,179 139,920 135,660 131,400 127,140 122,880 96,775 71,325 46,640 22,828 2,149,583 Total Debt Service 0 681,321 1,153,427 1,667,515 2,155,945 2,541,416 2,472,260 2,403,104 2,333,948 2,264,792 2,195,636 2,024,095 1,739,118 1,403,117 1,074,635 1,011,904 600,136 453,361 340,462 253,425 28,516,188 POTENTIAL TOTAL DEBT SERVICE General Fund (Levy-101)10 year avg 627,642 888,910 1,210,195 1,585,525 1,962,731 1,964,770 1,805,782 1,777,254 1,643,725 1,510,690 1,383,687 1,053,366 798,909 491,943 197,321 167,888 0 0 0 0 19,612,488 Water Fund (601)15 year 500,142 707,087 869,239 948,369 1,017,111 1,369,213 1,335,327 1,387,731 1,366,722 1,329,144 1,321,080 1,292,466 1,286,820 1,272,644 1,202,288 1,160,603 523,561 401,569 351,022 230,597 20,278,135 Sewer Fund (602)15 year 326,390 774,846 766,875 812,188 797,734 791,054 776,472 764,332 728,952 712,645 701,084 684,449 672,727 657,879 576,798 564,184 204,800 207,467 166,400 0 11,925,305 Storm Water Fund (603)15 year 0 31,676 64,335 97,867 132,164 165,479 161,219 156,959 152,699 148,439 144,179 139,920 135,660 131,400 127,140 122,880 96,775 71,325 46,640 22,828 2,149,583 Total Debt Service 1,454,173 2,402,519 2,910,643 3,443,949 3,909,740 4,290,515 4,078,800 4,086,276 3,892,097 3,700,918 3,550,031 3,170,201 2,894,115 2,553,866 2,103,547 2,015,555 825,136 680,361 564,062 253,425 53,712,087 63 City of Lake Elmo 2015 Budget City of Lake Elmo 2015 Budget 64 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 nine active capital projects funds: 1. Park Dedication 2. Infrastructure Reserve 3. Vehicle Replacement 4. City Facilities 5. Village 6. Manning Avenue/Highway 36 7. Street Improvements 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. PARKLAND DEDICATION MISSION STATEMENT To develop a comprehensive and fully accessible park, recreation and trail plan that provides use opportunities for all citizens. DISCUSSION OF SIGNIFICANT 2014 EVENTS  Acquisition of park space on the corner of 10th Street and Manning Avenue through a Joint Powers Agreement with Stillwater Public Schools  Planning and development of a neighborhood park in the Sanctuary development.  Improvements made in Pebble Park including a ZipKrooz, climbing structure, shelter, and volleyball court.  New park signs designed, fabricated, and installed  Developed route for the Lake Elmo Regional Trail system, and initiated feasibility study  Completed master plan with phase 2 improvements for Pebble Park  Participated in a joint workshop session with City Council on February 11, 2014  Installed a gate at Sunfish Lake Park  Planned and executed first annual Volksmarch event 65 City of Lake Elmo 2015 Budget MAJOR 2015 OBJECTIVES  Complete phase 2 improvements in Pebble Park  Make entrance improvements to three community parks  Achieve inclusion on Washington County Master Trail Plan for consideration by Met Council  Seek and secure funding opportunities to support the initiation of the Lake Elmo Regional Trail  Develop a master plan for Sunfish Lake Park DEPARTMENT BUDGET SUMMARY Park Fund Budget 11 Foot Mower 50,000 Field Maintenance Equipment 30,000 Refurb and Update Current Parks 400,000 LERT Feasibility Study 30,000 Total Park Fund Budget 510,000 PERFORMANCE INDICATORS Complete Updated Comprehensive Park Plan Complete Comprehensive Trail Plan Develop Master Plan for Reid Park Develop Master Plan for Sunfish Lake Park Complete LERT Feasibility Study City of Lake Elmo City Bonding State Bonding 2015 - 2019 CIP 100% Assessed Approved by CC 12/16/14 Partially Assessed Potential Future General Fund Vehicle City Facilities State Water Sewer SW Library Park Resident Developer Project Bonding (Levy)Fund Fund Grant Funds Fund Fund Fund Fund Fund*Assessment Assessment Total Notes 12/31/14 Projected Balance 0 261,910 Vehicle fund to be spent down in 2014; City Facilities fund to be replenished in full 2015 39th Street Project updates X 606,661 x 29,020 239,775 (1)163,786 174,080 606,661 Increased funding needs based on updated quotes and project scope changes 11 Foot Mower Parks X 0 x 50,000 50,000 Per PW Director, smaller mowers may make more sense due to current prices Field Maintenance Equipment Parks X 0 x 30,000 30,000 Refurb and update current parks Parks X 0 x 400,000 400,000 LERT Feasability Study Parks X 0 x 30,000 30,000 Spray Patcher-Streets Levy X 55,000 x 55,000 55,000 Propose purchasing new at $65k vs used at $52k Replacement of CV1 (Tahoe #1)Fire X 52,000 x 52,000 52,000 Replaces 2007 w/76,000 miles ADA Bathroom LIB X 0 x 35,000 35,000 Pave Parking Lot LIB X 0 x 35,000 35,000 Inwood Booster Station Water X 650,000 x 500,000 650,000 1,150,000 To be funded with MN Deed Funding ($3.5M) Inwood Trunk Watermain Impr Water X 0 x 1,900,000 1,900,000 To be funded with MN Deed Funding ($3.5M) Inwood Water Tower (#4)Water X 0 x 1,100,000 1,100,000 LE Ave/Downtown Improvements SPLIT X 1,635,511 x 837,831 290,000 0 327,680 180,000 1,635,511 SEE SPLIT DETAILS BELOW (Sewer component 100% assessible) Warning sirens x2 Fire X 50,000 50,000 50,000 Replace Cimarron and add in No. center gap Reconstruction of EP Blvd UP/Bremer X 1,000,000 1,000,000 1,000,000 100% assessable; requested by United Properties and Bremer Bank Projected 2015 4,049,172 1,023,851 0 0 3,500,000 1,179,775 163,786 327,680 70,000 510,000 1,180,000 174,080 8,129,172 2016 1 Ton Truck/Dump Box PW X 70,000 70,000 70,000 Replaces 2003 1 Ton with Plow; will be at year 13 of useful life Lions Park Grading Parks X 0 40,000 40,000 New GL software Finance X 60,000 60,000 60,000 Current software 10 years old and some components no longer supported Stonegate & Kirkwood Levy X 760,000 x 532,000 228,000 760,000 Kelvin Avenue Levy X 265,000 x 175,000 90,000 265,000 Kelvin Avenue Water X 151,000 x 38,800 112,200 151,000 Sewer Assessment LIB X 0 30,000 30,000 Inwood Water Tower (#4)Water X 1,100,000 x 1,100,000 1,100,000 Move forward from 2017 per DZ 8/19/14 Rescue Engine Fire X 550,000 x 550,000 550,000 Replaces 1990 Engine with combination vehicle LE Ave/Downtown Improvements SPLIT X 1,635,511 x 837,831 290,000 0 327,680 180,000 1,635,511 SEE SPLIT DETAILS BELOW (Sewer component 100% assessible) Pressure reduction station-Vlg E 12"Water X 110,000 x 110,000 110,000 Olson Lake Trail Sanitary Sewer Ph 2 Sewer X 180,000 x 180,000 180,000 Pressure reduction station Hammes Estates - 12" bypass X 120,000 x 120,000 120,000 Proposed to use excess funds included in initial Section 34 Assessment Fund Village East Trunk Watermain - 12" bypass X 110,000 x 110,000 110,000 Projected 2016 5,111,511 2,224,831 0 0 0 1,538,800 0 327,680 30,000 40,000 790,200 230,000 5,181,511 2017 Dump Truck/Plow Wing/Sander PW X 215,000 215,000 215,000 Replaces 1998 Plow Truck; will be in 17th year of useful life; limited suppliers Replacement of CV2 (Tahoe #2)Fire X 55,000 x 55,000 55,000 Replaces 2006; purchased used in 2010 Tri-Lakes Area Levy X 1,830,000 x 1,281,000 549,000 1,830,000 36th, 37th and Irwin Levy X 561,000 x 388,200 172,800 561,000 36th, 37th and Irwin Water X 306,000 x 306,000 306,000 No water assessment Hudson Blvd LS Replace & Upsize Sewer X 500,000 x 500,000 500,000 LE Ave/Downtown Improvements SPLIT X 1,635,511 x 837,831 290,000 0 327,680 180,000 1,635,511 SEE SPLIT DETAILS BELOW (Sewer component 100% assessible) Projected 2017 5,102,511 2,777,031 0 0 0 596,000 500,000 327,680 0 0 901,800 0 5,102,511 2018 Replacement of Tender 1 Fire X 450,000 x 450,000 450,000 Replaces 1987 Tender; refurbished in 2004 Mini excavator PW 50,000 50,000 50,000 Currently rent for $4k per year Add windows in blocked openings LIB X 0 50,000 50,000 38th, 39th and Innsdale Levy X 1,020,000 705,100 314,900 1,020,000 38th, 39th and Innsdale Water X 598,000 175,000 423,000 598,000 OV No of UP RR Levy X 1,100,000 x 770,000 330,000 1,100,000 OV No of RR watermain replacement Water X 300,000 x 300,000 300,000 OV lateral sewer ext No of RR Sewer X 220,000 x 0 220,000 220,000 LE Ave/Downtown Improvements SPLIT X 1,635,511 x 837,831 290,000 0 327,680 180,000 1,635,511 SEE SPLIT DETAILS BELOW (Sewer component 100% assessible) Projected 2018 5,373,511 2,812,931 0 0 0 765,000 0 327,680 50,000 0 1,467,900 0 5,423,511 2019 Replacment of U2 Fire X 75,000 x 75,000 75,000 Replaces 1994. F-350 Replacement SCBA's Fire X 207,000 x 207,000 207,000 Per NFPA, max 15 year life; repairs done 9/14 to gain 5 yrs & extend life to max OV So of UP RR Levy X 1,900,000 x 1,330,000 570,000 1,900,000 OV So of RR watermain replacement Water X 710,000 x 710,000 710,000 OV lateral sewer ext So of RR Sewer X 1,120,000 x 0 1,120,000 1,120,000 Elevated Storage Tank #3 Water X 2,200,000 x 2,200,000 2,200,000 Pressure reduction station-12" tower #3Water X 110,000 x 110,000 110,000 LE Ave/Downtown Improvements SPLIT X 1,635,511 x 837,831 290,000 0 327,680 180,000 1,635,511 SEE SPLIT DETAILS BELOW (Sewer component 100% assessible) Projected 2019 7,957,511 2,449,831 0 0 0 3,310,000 0 327,680 0 0 1,870,000 0 7,957,511 LE Ave/Downtown Improvement Project 2015 2016 Total Annual Streets 1,528,998 708,218 2,237,216 447,443 Grand Total 27,594,217 11,288,474 0 0 3,500,000 7,389,575 663,786 1,638,402 150,000 550,000 6,209,900 404,080 31,794,217 Sidewalks 138,653 118,841 257,494 51,499 Trails 0 16,500 16,500 3,300 Landscaping 169,400 569,800 739,200 147,840 (1)Includes oversizing change approved by City Council on 9/16/14 ($118,975)Xcel underground 0 254,547 254,547 50,909 Comcast Underground 0 86,247 86,247 17,249 ROW 0 597,950 597,950 119,590 Total - GENERAL FUND 1,837,051 2,352,103 4,189,154 51.23%837,831 Watermain - WATER FUND 483,333 966,667 1,450,000 17.73%290,000 Sanitary Sewer - SEWER FUND (100% assessed)300,000 600,000 900,000 11.01%180,000 Regional Stormwater System - STORMWATER FUND 1,392,642 245,760 1,638,402 20.04%327,680 PROJECT BY YEAR 4,013,026 4,164,530 8,177,556 100.00%1,635,511 ANNUAL BONDING; WA CTY TO BOND; CITY TO REPAY 1,635,511 OVER 5 YEARS; 0% INTEREST FROM WA CTY; CITY TO REPAY VIA ANNUAL BONDING66 City of Lake Elmo 2015 Budget 67 City of Lake Elmo 2015 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. For 2014, all enterprise funds have 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. City of Lake Elmo 2015 Budget 68 WATER MISSION STATEMENT Through the proper treatment and distribution, provide clean, potable water for the citizens of Lake Elmo. DISCUSSION OF SIGNIFICANT 2014 EVENTS In 2014 the City of Lake Elmo expanded its water system by the installation of water main in the Section 34 (Lennar) portion of the City and by installing water main line from the downtown to the I-94 corridor via Lake Elmo Avenue. The Section 34 project was 100% assessed and the I-94 project was more than 50% funded by advance commitments for future water access charges. In addition, a new well, well house and distribution lines were installed at 50th Street and will be put on line late in 2014. In addition, the City contract engineering staff has completed a significant hydraulic analysis, in concert with new development that detailed the need for reducing valves in the Section 34 area and upsizing of pipe in the 39th Street project that will eliminate the need for a water tower. On a day to day level, staff dealt with 11 water main breaks, 12 significant freeze issues and efforts continue to replace old and failing water meters. MAJOR 2015 OBJECTIVES Major objectives for 2015 include:  Construction of the Inwood Watermain (including pumping station) with $3.5 million in state bonds;  Assessment and replacement as needed of antiquated water main in the Old Village in conjunction with the Lake Elmo Avenue Street Reconstruction;  Planning (including funding options) for the Inwood Avenue Water Tower;  Successful installation of reducing valves in the Section 34 are of the community;  Acquire via quit claim the land housing well #3 from the Carriage Station HOA;  Create a master list of annual trouble spots for water main breaks and freezing. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change Operating Revenue 664,183 584,317 683,188 650,405 770,297 18.4% Operating Expense 744,573 729,761 891,225 728,990 964,225 32.3% Operating Income (Loss) (80,391) (145,444) (208,037) (78,585) (193,928) -146.8% Non-Oper Income 145,347 155,992 2,991,000 781,000 1,287,000 64.8% Non-Oper Expense 197,123 189,130 200,948 202,690 270,481 33.4% Non-Oper Income (Loss) (51,776) (33,138) 2,790,052 578,310 1,016,519 75.8% Change in Net Assets (132,167) (178,582) 2,582,015 499,725 822,591 64.6% PERFORMANCE INDICATORS Replace last cadre of water meters to insure proper operation and accurate recording Successful construction of the Inwood Water Main with pumping station under budget Reduce the number of water main breaks by 25% and water line freezes by 50% Successfully pass all state hygienic water reviews for potable water Flush (2X) per year in an effort to keep water lines fresh SEWER MISSION STATEMENT To provide, to those residents served, a hygienic and sanitary waste water sewer system that connects with Metropolitan Council treatment systems in a manner that cash flows the City’s infrastructure investment 69 City of Lake Elmo 2015 Budget DISCUSSION OF SIGNIFICANT 2014 EVENTS In 2014, the City of Lake Elmo completed its first 3 sanitary sewer projects with the installation of the Lake Elmo Avenue force main to the Old Village, the installation of the Section 34 sewer to facilitate the Lennar et al subdivisions, and the completion of the Olsen Lake Trail sewer project connecting residents on the lake into the Oakdale system. These projects also included the installation of (2) major lift stations. The City continues to operate mini- 201 systems for isolated areas in the community, however, one system in the Lake Jane area needs to be rehabilitated. In addition, the City worked with the MPCA to create an agreement for the Hamlet at Sunfish Lakes neighborhood to hook up to City sewer in 2016-2017. The City also forged an agreement with Washington County to provide a grace period for residents that have faulty system but will soon be hooked up to City sewer. MAJOR 2015 OBJECTIVES Major objectives in 2015 include:  Completion of 39th Street Sewer project (including future design of sewer for Hamlet at Sunfish Lakes)  Review 201 Systems for viability and restoration (including proper assessment and billing)  Create Lift Station Maintenance Plan and implement same  Develop strategy for purchase of vacuum / cleaning equipment for sewer maintenance DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change Operating Revenue 54,710 54,882 76,500 209,481 200,884 -4.1% Operating Expense 41,081 95,590 132,600 103,914 206,688 -156.1% Operating Income (Loss) (9,963) (87,266) (116,702) 105,566 (5,804) 105.5% Non-Oper Income 10,814 9,395 2,939,100 541,700 1,415,100 161.2% Non-Oper Expense 0 0 68,446 81,158 135,372 -66.8% Non-Oper Income (Loss) 10,814 9,395 2,870,654 460,542 1,279,728 177.87% Change in Net Assets 851 (77,871) 2,753,952 566,108 1,273,924 96.8% PERFORMANCE INDICATORS Successful start-up and implementation of (2) new lift stations Replacement / Refurbishment of Lake Jane 201 System Begin hookup of Old Village residents to City Sewer – Phase I Create sanitary sewer bill system including the proper billing of 201 systems that reflect 2015 costs SURFACE WATER MISSION STATEMENT The City of Lake Elmo’s surface water (aka storm water program) is purposed to provide orderly drainage of all surface water run off for all residents through the compliance with the federally mandated MS4 permit. DISCUSSION OF SIGNIFICANT 2014 EVENTS As the community develops, the proper management of both individual lot and regional drainage systems to mitigate the potential for regional flooding and to protect personal property. The surface water fund is meant to provide utility revenues to facilitate planning, property review & analysis and functional control projects to improve city wide drainage. In 2014, the City of Lake Elmo, in cooperation with the VBWD, has spent considerable time planning for appropriate drainage in the following City of Lake Elmo 2015 Budget 70 areas:  Study with Washington County on Old Village Drainage;  VWBD Study on diverting water to Sunfish Lake and Goetschel Pond for northern Village development;  9 subdivisions (6 residential and 3 commercial) for drainage control per state and local guidance;  Begin the rehabilitation of city –owned rain gardens and devise future rain garden use strategy; The Surface Water Fund has been stabilized in the past two years by the collection of delinquent fees and no use of the fund for non surface water issues, which had been a practice in the past. MAJOR 2015 OBJECTIVES The major objectives for 2015 are:  The acquisition of land (both north and south) for retention ponds to mitigate the localized downtown flooding consistent with the Lake Elmo Avenue reconstruction project;  Complete Study of the Kramer Lake Basin for future development;  Complete a survey and develop a strategy for pond maintenance under the City’s control;  Complete a detailed survey of the condition and maintenance needs of catch basins, culverts and ditch system for the conveyance of water and orderly drainage. DEPARTMENT BUDGET SUMMARY 2012 2013 2014 2014 2015 % Actual Actual Budget Projected Budget Change Operating Revenue 171,229 211,255 215,000 205,000 220,000 7.3% Operating Expense 105,227 116,275 156,134 123,771 177,714 -43.6% Operating Income (Loss) 66,002 94,980 58,866 81,229 42,286 -47.9% Non-Oper Income 638 1,098 17,500 1,100 1,100 0.0% Non-Oper Expense 0 0 0 0 0 0.0% Non-Oper Income (Loss) 638 1,098 17,500 1,100 1,100 0.0% Change in Net Assets 66,640 96,078 76,366 82,329 43,386 47.3% PERFORMANCE INDICATORS Surface Water System managed to a level that there is no localized flooding in traditionally susceptible areas Pond Survey and Maintenance Schedule Completed by 10-1-2015 Catch Basin, Culvert and Ditch Assessment Completed by 10-1-2015 Land acquired for downtown drainage strategy by 4-1-2015 Goetschel Basin Study incorporated into northern Village developments Sunfish Lake Easements acquired for storm water management Kramer Basin Study completed prior to Phase #2 development beginning 71 City of Lake Elmo 2015 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;  Thorough Credit Rating & Analysis of Developers;  Strict Adherence to Comprehensive Plan / “No Poaching Strategy” PLANNED LAND USE City of Lake Elmo Development Summary ProjectedUnit Build Outs - Connections Updated 12/8/14 NMJ Average Development Units Build Outs (Rec Units)Home Value 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Total Section 34 Lennar 310 >Approx 10 yr buildout; bi-annual phasing 350,000 15 34 30 30 30 30 30 30 30 30 21 310 Hammes 163 7 year buildout; annual phasing 350,000 0 15 25 25 25 25 25 23 0 0 0 163 Boulder Ponds 162 6 year buildout; annual phasing 350,000 0 20 20 84 20 18 0 0 0 0 0 162 Hans Hagen/Azure 539 10 year buildout; annual phasing 325,000 0 5 50 50 160 60 60 60 60 17 17 539 Azure Commercial 100 Based on approved Concept Plan 0 0 0 0 20 0 20 0 20 20 20 100 District 916 School 35 0 0 35 0 0 0 0 0 0 0 0 35 Commercial**55 Three Projects in the queue 350,000 35 20 0 0 0 0 0 0 0 0 0 55 Total 1364 345,000 50 94 160 189 255 133 135 113 110 67 58 1,364 Lake Elmo Ave Regan 92 Build out on phase #2 anticipated over 5 yea TBD 0 19 15 15 15 15 13 0 0 0 0 92 Pratt 48 7 year buildout; annual phasing 350,000 0 0 0 10 10 10 10 8 0 0 0 48 Ryland 51 4 year buildout; annual phasing 350,000 1 20 15 15 0 0 0 0 0 0 0 51 Emerson 166 Updates from 4/18/14 DZ meeting 350,000 0 0 0 20 20 20 20 20 20 20 26 166 Oakland Jr. High 80 0 0 0 80 0 0 0 0 0 0 0 80 Commercial 43 350,000 0 0 0 0 15 15 13 0 0 0 0 43 Total 480 350,000 1 39 30 140 60 60 56 28 20 20 26 480 Old Village Gonyea S 100 7 year build out; annual phasing 350,000 0 15 15 15 15 15 15 10 0 0 0 100 Gonyea N 97 7 year build out; annual phasing 350,000 0 0 15 15 15 15 15 15 7 0 0 97 Gonyea W 180 10 year buildout; annual phasing 350,000 0 0 15 15 15 15 15 15 15 15 60 180 Easton Village 217 10 year build out; annual phasing 350,000 0 15 20 20 20 20 20 20 20 20 42 217 Easton Village N 0 6 year build out; annual phasing 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Engstrom 143 9 year build out; annual phasing 350,000 0 12 17 17 17 17 17 16 16 14 0 143 Schiltgen Comm 0 TBD 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Redevelop 0 No plans yet received per Planning 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Hamlet on Sunfish*41 Per MPCA agreement 0 0 41 0 0 0 0 0 0 0 0 41 LE Elementary*35 School has requested sewer ASAP 0 35 0 0 0 0 0 0 0 0 0 35 Commercial on 39th*120 6 year build out; 6 vacant parcels 0 20 20 20 20 20 20 0 0 0 0 120 Total 933 350,000 0 97 143 102 102 102 102 76 58 49 102 933 Overall Total 2,777 51 230 333 431 417 295 293 217 188 136 186 2,777 cumulative total 281 614 1,045 1,462 1,757 2,050 2,267 2,455 2,591 2,777 Residential Connections 16 136 263 296 327 225 207 197 148 96 140 2,051 *Sewer connections only Commercial Connections 35 94 70 135 90 70 86 20 40 40 46 726 **Three commercial projects in Section 34 include Kwik Trip (Hudson and Keats), Insurance Office Building and Neuro Medical Clinic (both in Eagle Point Business Park) City of Lake Elmo Development Summary Projected WACs Updated 12/11/14 NMJ Average Development Units WAC/SAC secured Home Value 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Total Section 34 Lennar 310 >Approx 10 yr buildout; bi-annual phasing 350,000 111 0 60 0 60 0 60 0 19 0 0 310 Hammes 163 7 year buildout; annual phasing 350,000 0 57 40 0 40 0 26 0 0 0 0 163 Boulder Ponds 162 6 year buildout; annual phasing 350,000 0 35 35 64 28 0 0 0 0 0 0 162 Hans Hagen/Azure 539 10 year buildout; annual phasing 325,000 0 15 50 50 50 150 60 60 60 44 0 539 Azure Commercial 100 Based on approved Concept Plan N/A 0 0 0 0 20 0 20 0 20 20 20 100 District 916 School 35 2016 build N/A 0 0 35 0 0 0 0 0 0 0 0 35 Commercial*55 Three commercial projects in the queue N/A 35 20 0 0 0 0 0 0 0 0 0 55 Total 1364 343,750 146 127 220 114 198 150 166 60 99 64 20 1,364 Lake Elmo Ave Regan 92 LOC WAC Pre-Pay TBD 0 30 31 31 0 0 0 0 0 0 0 92 Pratt 48 Pay all WACs at Final Plat 350,000 0 0 0 48 0 0 0 0 0 0 0 48 Ryland 51 4 year buildout; annual phasing 350,000 51 0 0 0 0 0 0 0 0 0 0 51 Emerson 166 LOC WAC Pre-Pay N/A 0 0 0 20 20 20 20 20 20 20 26 166 Oakland Jr. High 80 N/A 0 0 0 80 0 0 0 0 0 0 0 80 Kee Lo 56 LOC WAC Pre-Pay N/A 16 8 8 8 8 8 0 0 0 0 0 56 Commercial 43 LOC WAC Pre-Pay N/A 0 0 0 0 15 15 13 0 0 0 0 43 Total 536 350,000 67 38 39 187 43 43 33 20 20 20 26 536 Old Village Gonyea S 100 5 year build out; annual phasing 350,000 0 35 35 0 30 0 0 0 0 0 0 100 Gonyea N 97 5 year build out; annual phasing 350,000 0 0 35 35 0 27 0 0 0 0 0 97 Gonyea W 180 9 year build out; annual phasing 350,000 0 0 35 35 0 35 0 40 0 35 0 180 Easton Village 217 9 year build out; annual phasing 350,000 0 71 0 50 0 50 0 46 0 0 0 217 Easton Village N 0 6 year build out; annual phasing 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Engstrom 143 9 year build out; annual phasing 350,000 0 50 0 50 0 43 0 0 0 0 0 143 Schiltgen Comm 0 TBD N/A 0 0 0 0 0 0 0 0 0 0 0 0 Redevelop 0 No plans yet received per Planning N/A 0 0 0 0 0 0 0 0 0 0 0 0 Hamlet on Sunfish 0 Per MPCA agreement N/A 0 0 0 0 0 0 0 0 0 0 0 0 LE Elementary 0 School has requested sewer ASAP N/A 0 0 0 0 0 0 0 0 0 0 0 0 Commercial on 39th 0 6 year buildout; 6 vacant parcels N/A 0 0 0 0 0 0 0 0 0 0 0 0 Total 737 350,000 0 156 105 170 30 155 0 86 0 35 0 737 Overall Total 2,637 213 321 364 471 271 348 199 166 119 119 46 2,637 WAC Rate Projected WAC $ Generated 3,000 639,000 963,000 1,092,000 1,413,000 813,000 1,044,000 597,000 498,000 357,000 357,000 138,000 7,911,000 *Three commercial projects in Section 34 include Kwik Trip (Hudson and Keats), Insurance Office Building and Neuro Medical Clinic (both in Eagle Point Business Park) City of Lake Elmo Development Summary Projected SACs Updated 12/11/14 NMJ Average Development Units WAC/SAC secured Home Value 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter Total Section 34 Lennar 310 >Approx 10 yr buildout; bi-annual phasing 350,000 111 0 60 0 60 0 60 0 19 0 0 310 Hammes 163 7 year buildout; annual phasing 350,000 0 57 40 0 40 0 26 0 0 0 0 163 Boulder Ponds 162 6 year buildout; annual phasing 350,000 0 35 35 64 28 0 0 0 0 0 0 162 Hans Hagen/Azure 539 10 year buildout; annual phasing 325,000 0 15 50 50 50 150 60 60 60 44 0 539 Azure Commercial 100 Based on approved Concept Plan 0 0 0 0 20 0 20 0 20 20 20 100 District 916 School 35 2016 build 0 0 35 0 0 0 0 0 0 0 0 35 Commercial*55 Three commercial projects in the queue 35 20 0 0 0 0 0 0 0 0 0 55 Total 1364 343,750 146 127 220 114 198 150 166 60 99 64 20 1,364 Lake Elmo Ave Regan 92 LOC WAC Pre-Pay TBD 0 0 0 0 0 0 0 0 0 0 0 92 Pratt 48 Pay all WACs at Final Plat 350,000 0 0 0 25 23 0 0 0 0 0 0 48 Ryland 51 4 year buildout; annual phasing 350,000 22 29 0 0 0 0 0 0 0 0 0 51 Emerson 0 LOC WAC Pre-Pay 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Oakland Jr. High 80 350,000 0 0 0 80 0 0 0 0 0 0 0 80 Kee Lo 0 LOC WAC Pre-Pay 0 0 0 0 0 0 0 0 0 0 0 0 Commercial 43 LOC WAC Pre-Pay 350,000 0 0 0 0 0 0 0 0 0 0 0 43 Total 314 350,000 22 29 0 105 23 0 0 0 0 0 0 314 Old Village Gonyea S 100 5 year build out; annual phasing 350,000 0 35 35 0 30 0 0 0 0 0 0 100 Gonyea N 97 5 year build out; annual phasing 350,000 0 0 35 35 0 27 0 0 0 0 0 97 Gonyea W 180 9 year build out; annual phasing 350,000 0 0 35 35 0 35 0 40 0 35 0 180 Easton Village 217 9 year build out; annual phasing 350,000 0 71 0 50 0 50 0 46 0 0 0 217 Easton Village N 0 6 year build out; annual phasing 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Engstrom 143 9 year build out; annual phasing 350,000 0 50 0 50 0 43 0 0 0 0 0 143 Schiltgen Comm 0 TBD 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Redevelop 0 No plans yet received per Planning 350,000 0 0 0 0 0 0 0 0 0 0 0 0 Hamlet on Sunfish 41 Per MPCA agreement 0 0 41 0 0 0 0 0 0 0 0 41 LE Elementary 35 School has requested sewer ASAP 0 35 0 0 0 0 0 0 0 0 0 35 Commercial on 39th 120 6 year buildout; 6 vacant parcels 0 20 20 20 20 20 20 0 0 0 0 120 Total 933 350,000 0 211 166 190 50 175 20 86 0 35 0 933 Overall Total 2,611 168 367 386 409 271 325 186 146 99 99 20 2,611 SAC Rate Projected SAC $ Generated 3,000 504,000 1,101,000 1,158,000 1,227,000 813,000 975,000 558,000 438,000 297,000 297,000 60,000 7,428,000 *Three commercial projects in Section 34 include Kwik Trip (Hudson and Keats), Insurance Office Building and Neuro Medical Clinic (both in Eagle Point Business Park) 75 City of Lake Elmo 2015 Budget 8 Appendix PERSONNEL City of Lake Elmo 2015 Budget 76 77 City of Lake Elmo 2015 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. City of Lake Elmo 2015 Budget 78 GLOSSARY OF TERMS 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. 79 City of Lake Elmo 2015 Budget GLOSSARY OF TERMS GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Conventions, rules, and 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 City of Lake Elmo 2015 Budget 80 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. GLOSSARY OF TERMS 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.