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2014-BudgetBook_FINAL
i Dear Mayor, Members of the City Council, & Taxpayers of Lake Elmo: I am pleased to present to you the 2014 City of Lake Elmo Budget – a newly formatted and detailed document de- signed not only to tell you how the City will spend your tax dollar next year BUT WHY & WHAT the City will spend your tax dollars on in basic services, park & recreation, utilities & development. In its pages you will find a comparative analysis between the City of Lake Elmo & other Minnesota cities, charts & graphs detailing our spending & staff allocation, our budgeting philosophy, and pro forma projections meant to help you track our growth. The end goal is to provide a comprehensive yet transparent look at the use of your tax dollar investment into our local government. Because it’s your money. Programmatically, this budget has been created using three basic governing principles adopted by Mayor Mike Pearson and the 2014 Lake Elmo City Council. They are: A. Efficient, low cost, taxpayer service-based government; B. Disciplined and balanced market-driven growth; C. Well-ordered, low regulatory burdened quality of life. All of our work branches off these three principles and is reflected in the following pages of this budget. To that end it is important to note that this budget represents a 0% increase in the total tax levy to Lake Elmo. This is no small feat as the Council for the second year committed $200,000 to pay down the $1.2 million in Old Village planning debt, elimi- nated “internal service funds”, made sure all of our utilities cash flow, and created policies and procedures that insure that developers, not taxpayers as has been the case in the past, pay 100% of the costs of developing in Lake Elmo. Key Committees have been established in Economic Development, Finance, Human Resources, and Public Safety to get citizen experts involved in our business practices Similarly, the 2014 City Council worked hard to rebuild bridges with key partners to help share the burden of basic ser- vices. Channels of communication have been opened up with 3M to talk about our water supply challenges. A trust has been built with Washington County and the MN Department of Transportation that allowed for a safety and remodeling project to be completed with Highway 5. And relationships have been restored with the Metropolitan Council that have resulted in the reduction of growth expectations that could have potentially burdened the City financially and destroy our open space character. This fiscal discipline allowed the City of Lake Elmo to retain its excellent Aa2 bond rating while many Minnesota cities were downgraded. For 2014, the Council & staff are positioning the City to be able to keep taxes stable, reduce water use rates, and man- age city resources to allow Lake Elmo to maintain a quality of life that allows homeowners to be the #1 community in maintaining home values for the third straight year. Take time and review the pages within. I guaranty you will find what you are looking for and come away proud of the effort of your elected officials and your hard working City staff. Dean A. Zuleger City Administrator ii City of Lake Elmo 2014 Budget 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 iiiCity of Lake Elmo 2014 Budget 1. INTRODUCTION ........................................................................1 Moodys Investor Service Overview ........................................ Local Indicators ....................................................................... Washington County Market & Net Tax Capacity Values of Taxable Property ..................................................................... 2. GENERAL FUND SUMMARY ...................................................7 General Fund Revenues ......................................................... Property Taxes/Franchise Fees ...................................... Licenses and Permits ..................................................... Intergovernmental ........................................................... Charges for Services ....................................................... Fines ................................................................................ Other ................................................................................ Other Financing Sources ................................................ General Fund Expenditures .................................................... General Government ....................................................... Public Safety .................................................................... Public Works .................................................................... Culture & Recreation ...................................................... Compensation Adjustment ............................................. Transfers Out ................................................................... 3. SPECIAL REVENUE FUNDS SUMMARY ..............................26 Development Fund.................................................................. Lake Elmo Days Fund ............................................................. Library Fund ............................................................................ 4. DEBT SERVICE FUNDS SUMMARIES .................................30 2006A G.O. Equipment Certificates of Indebtedness .......... 2009A G.O. Refunding Bonds ................................................ 2009B G.O. Improvement Bonds .......................................... 2010A G.O. Improvement Bonds ........................................... 2010B G.O. Refunding Bonds ................................................ 2011A G.O. Improvement Bonds ........................................... 2012A G.O. Refunding Bond .................................................. 2012B G.O. Improvement Bonds ........................................... 2013A G.O. Improvement Bonds ........................................... BUDGET INDEX iv City of Lake Elmo 2014 Budget 5. CAPITAL PROJECTS FUND SUMMARY ...............................36 Park Dedication ...................................................................... Infrastructure Reserve............................................................ Vehicle Replacement .............................................................. City Facilities ........................................................................... Village ...................................................................................... Manning Avenue/Highway 36 ................................................ 2013 Street Improvements .................................................... South of 10th Street Improvements ...................................... 5th Street Parkway ................................................................. Capital Improvement Plan ...................................................... 6. ENTERPRISE FUNDS SUMMARY ........................................49 Water ....................................................................................... Sewer ....................................................................................... Surface Water ......................................................................... 7. INTERNAL SERVICE FUNDS SUMMARY .............................56 Radio Replacement ................................................................ Information Technology Replacement ................................... Furniture, Fixtures, and Equipment Replacement ................ 8. GROWTH & DEVELOPMENT ................................................58 New Development ................................................................... Baseline OP & OV Activity ....................................................... 9. APPENDIX .............................................................................62 Organizational Chart ............................................................... Personnel Compensation Distribution .................................. Glossary of Terms ................................................................... BUDGET INDEX 1City of Lake Elmo 2014 Budget INTRODUCTION1 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 in- dicators 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 di- rect debt burden and favorable personal liability.” Lake Elmo (August 2013) Mahtomedi (June 2013) Minnetrista (August 2013) Medina (March 2013) Shorewood (January 2013) Stewartville (June 2013) Credit Rating: Moodys Aa2 Aa2 N/A Aa2 Aa1 Aa3 S&P N/A N/A AA+N/A N/A N/A 2010 Census Population 8,069 7,676 6,384 4,892 7,307 5,916 % Change since 2000 17.6%1.5%46.5%22.2%-1.3%9.3% Taxable Full Valuation $1,028,011,400 $878,186,100 $1,223,555,000 $1,297,183,800 $1,400,000,000 $302,500,000 5 Year Avg. Annual % Change -3.9%-3.4%-5.9%-2.9%3.5%-1.1% Estimated Full Value Per Capita $127,403 $114,407 $191,660 $265,164 $194,012 $49,945 Per Capita Income as % of U.S.159.0%148.7%188.8%297.2%219.0%88.3% Median Family Income as % of U.S.189.0%169.7%185.3%231.2%213.9%96.5% County Unemployment Rate 4.7%4.7%5.0%5.0%5.0%4.3% General Fund Balance $3,500,000 $4,948,617 $2,700,000 $2,119,679 $3,500,000 $931,000 G.F. Balance as % of G.F. Revenues 107.0%100.1%59.0%58.8%66.0%49.8% Overall Debt Burden 2.3%5.1%3.6%2.9%3.1%2.0% Direct Debt Burden 0.5%1.1%0.7%0.9%0.7%3.5% Direct Debt per Capita $1,935.80 $1,891.61 $1,766.92 $2,280.25 $355.82 $912.78 G.O. Debt Outstanding $15,620,000 $14,520,000 $11,280,000 $11,155,000 $2,600,000 $5,400,000 Principal Amortization in 10 Years 60.3%71.9%51.0%N/A 86.8%68.8% Source information includes current credit rating reports and official statements. COMPARISON OF KEY CREDIT INDICATORS WASHINGTON COUNTY MARKET AND NET TAX CAPACITY VALUES OF TAXABLE PROPERTY 2 City of Lake Elmo 2014 Budget New Issue: Moody's assigns Aa2 to Lake Elmo's (MN) $5.7M GO Bonds, Series 2013A Global Credit Research - 05 Sep 2013 Aa2 applies to $15.6M of post-sale GOULT debt LAKE ELMO (CITY OF) MN Cities (including Towns, Villages and Townships) MN Moody's Rating ISSUE RATING General Obligation Bonds, Series 2013A Aa2 Sale Amount $5,725,000 Expected Sale Date 09/11/13 Rating Description General Obligation Moody's Outlook NOO Opinion NEW YORK, September 05, 2013 --Moody's Investors Service has assigned a Aa2 rating to the City of Lake Elmo's (MN) $5.7 million General Obligation Bonds, Series 2013A. Concurrently, Moody's has affirmed the Aa2 rating on $15.6 million of the city's post-sale general obligation debt. The series 2013A bonds are secured by the city's general obligation unlimited tax pledge, and proceeds of the bonds will finance water and sewer improvements within the city. SUMMARY RATING RATIONALE The Aa2 rating reflects the moderately-sized but affluent tax base located in the Twin Cities metro region; strong finances supported by conservative budgeting, annual surpluses, and healthy unreserved fund balance; low direct debt burden and favorable pension liability. STRENGTHS - Affluent tax base favorably located in Twin Cities metropolitan area - Maintenance of healthy General Fund reserves and liquidity CHALLENGES - Trend of declining tax base valuations - Small tax base size relative to others in the rating category DETAILED CREDIT DISCUSSION MODERATELY-SIZED AND AFFLUENT TAX BASE NEAR THE TWIN CITIES The city's tax base is expected to grow in the medium term despite recent trends of valuation declines due to its favorable location within the Twin Cities metropolitan area and large amount of land available for development. Located in Washington County (general obligation rated Aaa/stable outlook), the city lies along the eastern edge of the metropolitan region, and is one of only a few communities in the area with a large amount of land available for development. The city's full value of $1.1 billion has experienced several years of declines due to residential 3City of Lake Elmo 2014 Budget housing depreciation. Large declines of 9.0% and 5.7% occurred in 2010 and 2011, respectively due to depreciation as well as a legislative change that occurred in 2011. However, depreciation has begun to taper off and the city experienced a more moderate 3.0% decline in 2012 and then a 0.1% increase in 2013. City officials report that approximately 45% of the city's land is available for development, and, of that available land, 60% will be developed within the next 5-7 years. Management reports that seven separate residential developments are planned and several have been platted. City officials project a $423 million increase in valuation over seven years, or approximately $60 million per year, solely from these residential developments. Given the planned development for the area, it is expected that the tax base will experience substantial growth in the medium term. Lake Elmo is primarily a bedroom community with the majority of residents commuting to employment opportunities throughout the Twin Cities area. Based upon assessed value, the city is 79% residential and 19% commercial and industrial. The largest employer of city residents is 3M Company (senior unsecured rated Aa2/stable outlook), which is headquartered in nearby Maplewood (Aa1) and employs approximately 10,000. The city was party to a lawsuit along with the State of Minnesota seeking damages from 3M for allowing perfluorochemicals (PFCs) to leach into groundwater in Washington County over several decades. Recently, the city entered a tolling agreement in order to begin substantive negotiations with 3M about the current groundwater conditions. The tolling agreement allows the city to negotiate with 3M, but waives the statute of limitations should the city decide to return to litigation. Conservatively, the city has not included any potential settlement money in its budget projections, and will use any such funds for one time expenditures or to pay debt service. Management reports that the city's other major employers and taxpayers remain stable. The city has experienced ongoing population growth in recent decades, including 17.6% growth between 2000 and 2010, and the Metropolitan Council (Aaa/stable outlook) estimates that the city's 2010 population of 8,069 could grow to 24,000 by 2030. Washington County's unemployment rate of 4.8% in June of 2013 remained below the national (7.8%) and state (5.2%) levels for same period. Lake Elmo's resident income levels significantly exceed those of the nation, with median family income equivalent to 186.1% and per capital income equivalent to 157.5% of the nation according to 2006 to 2010 estimates from the American Community Survey. STABLE FINANCIAL OPERATIONS SUPPORTED BY HEALTHY RESERVES The city's financial operations are expected to remain stable given its history of sound financial management and maintenance of healthy General Fund liquidity and reserves. The city has a demonstrated history of conservative financial management, having closed the past six fiscal years with modest operating surpluses. Management attributes the surpluses to conservative budgeting of both revenues and expenditures. The city closed fiscal 2012 with a $525,000 operating surplus and a General Fund balance of $3.4 million, or a substantial 105.3% of revenues. Approximately $1 million of the city's fund balance is reserved for an advance made several years ago to help finance the initial planning for the Old Village redevelopment project. The project stalled during the economic downturn and then was stopped completely. The city plans to write-off $200,000 in both 2013 and 2014, which will reduce the non-spendable portion of the fund balance. A portion of the advance will remain as it is attributable to water and sewer improvements that are part of the current issuance. Despite these advances, General Fund liquidity remains healthy, with 2012 unrestricted cash and investments totaling $2.1 million, or 65.1% of revenues. Likewise, the city's fiscal 2012 unassigned fund balance of $2.4 million, which is equivalent to 73.9% of revenues, remains healthy and above the city's policy of maintaining undesignated fund balance at or above 50% of the next year's budgeted tax revenues. Management projects that fiscal 2013 will result in modest $120,000 surplus. City officials expect the tax levy and tax rate to remain flat in 2014 with balanced to modestly surplus operations. Property taxes comprise 78% of Lake Elmo's revenues, and the city's collection rate is high with few appeals. The city does not receive any local government aid; therefore, it is not subject to any risk associated with budgetary pressures at the state. A property tax rate limit is in place for 2014; however, officials report this will not impact Lake Elmo as it expect to maintain operations under the same rate as the previous year. MODERATE DEBT BURDEN WITH ADDITIONAL BORROWING PLANNED Currently, the city's direct debt burden is a moderate 0.9% of full value, and though some additional borrowing is planned, the debt burden is expected to remain manageable given long-term plans of growth. Debt service was 18.8% of revenues in 2012; however, nearly one half of the city's outstanding general obligation debt is supported by water or sewer revenue, reducing the impact on the city's general tax levy. Due to the substantial growth that is planned within the city, management expects to borrow an additional $9M over the course of the next five years. It is likely that much of this debt would also be supported by water and sewer revenues. Assuming there was no change in full value, the city's debt burden would increase to an above average but manageable 1.7% of full value. Amortization of existing debt is average, with 65.7% of principal expected to be retired within ten years. All of the 4 City of Lake Elmo 2014 Budget city's outstanding debt is fixed rate, and the city is not a party to any interest rate swap agreements. Lake Elmo has a favorable employee pension burden, based on unfunded liabilities for its participation in one multiple-employer cost-sharing plan administered by the state and a single employer plan administered by the Lake Elmo Volunteer Firefighter's Relief Association. Reported unfunded pension liabilities include an estimated $703,000 for Lake Elmo's portion of the statewide General Employees Retirement Funds (GERF) as of June 30, 2011, and no unfunded liability for Lake Elmo Volunteer Firefighter's Relief Association which has a funded ratio of 118.2% as of December 31, 2010. The city has consistently made its required contributions to these pension plans, which was a total of $104,000 in 2011 or 2.9% of operating revenues. Moody's adjusted net pension liability (ANPL) for the city, under our methodology for adjusting reported pension data, is $1.6 million, or a moderate 0.47 times operating revenues, compared to just below 1 times on average in the sector. The ANPL for the city's share of GERF is $1.8 million, and the ANPL for the Lake Elmo Volunteer Firefighter's Relief Association is -$177,000, indicating the plan is currently fully funded. Moody's ANPL reflects certain adjustments we make to improve comparability of reported pension liabilities. The adjustments are not intended to replace Lake Elmo's reported liability information, but to improve comparability with other rated entities. We determined Lake Elmo's share of liability for GERF in proportion to its contributions to the plan. WHAT COULD CHANGE THE RATING - UP - Growth in the city's tax base to levels consistent with higher-rated entities - Maintenance of healthy financial reserves and liquidity WHAT COULD CHANGE THE RATING - DOWN - Deterioration of the tax base or weakening of the demographic profile - Material declines in the city's financial reserves - A significant increase in the city's net direct debt burden KEY STATISTICS Population (2010 Census): 8,069 (17.6% increase since 2000) 2013 full valuation: $1.1 billion (2.5% five-year average annual decrease) Estimated full value per capita: $135,566 2006-2010 American Community Survey median family income as a % of nation: 186.1% 2006-2010 American Community Survey per capita income as a % of nation:157.5% Unemployment rate for Washington County (June 2013): 4.8% (Minnesota: 5.2%; U.S.: 7.8%) Fiscal 2012 General Fund balance: $3.2 million (105.3% of revenues) Fiscal 2012 unassigned General Fund balance: $2.4 million (73.9% of revenues) Fiscal 2013 net cash and investments: $2.1 million (65.1% of revenues) Overall debt burden as a % of full value (direct): 2.7% (0.9%) Payout of principal (10 years): 65.7% Post-sale general obligation debt outstanding: $15.6 million ($14.4 million rated by Moody's) Moody's ANPL (2011): $1.7M (0.47x fiscal 2011 operating revenues) PRINCIPAL METHODOLOGY The principal methodology used in this rating was General Obligation Bonds Issued by US Local Governments published in April 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. 5City of Lake Elmo 2014 Budget REGULATORY DISCLOSURES For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Analysts Cora Bruemmer Lead Analyst Public Finance Group Moody's Investors Service Soo Yun Chun Backup Analyst Public Finance Group Moody's Investors Service Rachel Cortez Additional Contact Public Finance Group Moody's Investors Service Contacts Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 USA © 2013 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. 6 CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable, including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. Each user of the information contained herein must make its own study and evaluation of each security it may consider purchasing, holding or selling. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. MIS, a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder Relations — Corporate Governance — Director and Shareholder Affiliation Policy." For Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail clients. It would be dangerous for retail clients to make any investment decision based on MOODY'S credit rating. If in doubt you should contact your financial or other professional adviser. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES AREMOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDITCOMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable, including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. Each user of the information contained herein must make its own study and evaluation of each security it may consider purchasing, holding or selling. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. 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MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail clients. It would be dangerous for retail clients to make any investment decision based on MOODY'S credit rating. If in doubt you should contact your financial or other professional adviser. 7City of Lake Elmo 2014 Budget The general fund (a type of governmental fund) is the chief operating fund of the city and is used to account for all fi- nancial resources except those required to be accounted for in another fund. Activities accounted for in the gener- al 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 cur- rent 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. 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Description Actual Actual Budget Actual Budget Actual Budget Change Revenues by Classification Property Taxes/Franchise Fees $2,407,152 $2,483,808 $2,488,403 $2,547,940 $2,465,277 $2,646,905 $2,761,032 4.3% Licenses and Permits $261,449 $230,420 $181,100 $330,547 $278,910 $336,351 $303,891 -9.7% Intergovernmental $155,293 $172,750 $133,249 $144,901 $156,271 $174,502 $158,921 -8.9% Charges for Services $13,974 $16,998 $10,850 $7,744 $7,334 $11,579 $7,691 -33.6% Fines $68,897 $63,818 $53,000 $58,385 $60,000 $44,536 $48,000 7.8% Other $85,043 $94,778 $34,384 $144,048 $47,100 $51,210 $24,000 -53.1% Total Revenues $2,991,807 $3,062,573 $2,900,986 $3,233,564 $3,014,892 $3,265,082 $3,303,535 1.2% Other Financing Sources Transfers In $0 $0 $0 $0 $0 $0 $0 0.0% Total Other Financing Sources $0 $0 $0 $0 $0 $0 $0 0.0% Total Revenues and Other Financing Sources $2,991,807 $3,062,573 $2,900,986 $3,233,564 $3,014,892 $3,265,082 $3,303,535 1.2% Expenditures by Program General Government $921,590 $1,019,046 $965,182 $995,020 $865,868 $987,747 $1,038,766 -5.2% Public Safety $1,064,174 $996,733 $1,081,541 $1,061,120 $1,212,995 $1,140,117 $1,157,663 -1.5% Public Works $473,295 $447,630 $482,749 $447,630 $482,749 $530,059 $540,270 -1.9% Culture & Recreation $155,547 $143,049 $183,103 $145,775 $189,765 $170,250 $206,837 -21.5% Compensation Adjustment $0 $0 $13,411 $13,411 $0 $0 $0 0.0% Total Expenditures $2,614,607 $2,606,457 $2,725,986 $2,662,956 $2,751,377 $2,828,174 $2,943,535 -4.1% Other Financing Uses Transfers Out $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $360,000 0.0% Total Other Financing Uses $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $360,000 0.0% Total Expenditures and Other Financing Uses $2,741,457 $2,836,962 $2,900,986 $2,914,126 $3,116,377 $3,188,174 $3,303,535 -3.6% Net Change in Fund Balance $250,350 $225,611 $0 $319,439 ($101,485)$76,909 ($0)-100.0% General Fund Balance Fund Balance, Beginning of Year $2,435,810 $2,686,160 $2,686,160 $2,686,160 $2,686,160 $3,005,599 $3,082,507 2.6% Net Change in Fund Balance $250,350 $225,611 $0 $319,439 ($101,485)$76,909 ($0)-100.0% Fund Balance, Ending of Year $2,686,160 $2,911,771 $2,686,160 $3,005,599 $2,584,676 $3,082,507 $3,082,507 0.0% General Fund Summary GENERAL FUND SUMMARY2 8 City of Lake Elmo 2014 Budget The general fund uses the modified accrual basis of ac- counting, under which revenues are not recognized until they are measurable and available, and expenditures are recognized in the period in which governments in gener- al normally liquidate the related liability rather than when that liability is first incurred (if earlier). The basis of budgeting is consistent with accounting prin- ciples generally accepted in the United States of America. FUND HIGHLIGHTS Overall 2014 general fund expenditures and transfers out are budgeted at $3,303,535, or a 5.8% increase from the 2013 general fund budget. The 2013 general fund bud- get is considered “balanced”, with overall general fund budgeted revenues also at $3,303,535, or a 4.37% in- crease from the 2013 general fund budget. The general fund levy of $2,565,000 for 2014 is 7.9% higher than the 2013 budgetd general fund levy of $2,413,588. This is a result of new budgeting for fiscal disparities and the projected collection of new develop- ment related property taxes. The annual results can be seen on the attached pie charts. GENERAL FUND REVENUES The modified accrual basis of accounting, as described in the general fund summary, is used to record general fund revenues. The city has several sources from which it derives revenue: PROPERTY TAXES/FRANCHISE FEES Taxes applied to all taxable property within the city’s boundaries are the primary revenue source for the city. This includes current and delinquent property taxes and the fiscal disparities tax, which is based on new commer- cial and industrial property valuation growth in the metro- politan area. The city sets its property tax levy at a level (when combined with other expected revenues) to ade- quately cover the general fund operating budget. Fran- chise fees are collected from cable television providers. LICENSES & PERMITS Licenses and permits include revenues received from businesses and occupations for activities conducted with- in the city, and primarily consist of building permit and plan check fee revenues. 2014 shows the initial increases due to the planned growth in the I94 Corridor. INTERGOVERNMENTAL These are shared revenues generally received from the state of Minnesota. • LGA: Local Government Aid was established in 1971 as a form of property tax relief. The state uses a distribu- tion formula to calculate the upcoming year’s LGA and notifies each city of its share by August 1. The City’s 2014 share amounts to $0. • MSA: Municipal State Aid is distributed through the state’s highway user distribution fund and is used for construction and maintenance of city highways and streets. • Fire Aid: The city receives state aid for fire services which is passed through to the Lake Elmo firefighter’s relief association. CHARGES FOR SERVICES The city collects various administrative fees and service revenues. FINES These are revenues received from penalties imposed for the violation of laws or regulations. OTHER Other sources of revenue include investment income and miscellaneous reimbursements and revenues. OTHER FINANCING SOURCES Transfers into the general fund (none scheduled for 2014). 9City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Property Taxes/Franchise Fees 101-000-0000-31010 Current Ad Valorem Taxes $2,122,403 $2,271,299 $2,442,903 $2,265,150 $2,413,588 $2,377,716 $2,565,000 7.9% 101-000-0000-31010 2008 MVHC Unallotment Recovery $0 $0 $0 $0 $0 $0 $0 0.0% 101-000-0000-31010 2009 MVHC Unallotment Recovery $0 $0 $0 $0 $0 $0 $0 0.0% 101-000-0000-31010 2010 MVHC Cut Recovery $0 $0 $0 $0 $0 $0 $0 0.0% 101-000-0000-31010 2011 MVHC Cut Recovery $0 $0 $0 $0 $0 $0 $0 0.0% 101-000-0000-31010 MVHC State Unallotment/Cut $0 $0 $0 $0 $0 $0 $0 0.0% 101-000-0000-31020 Delinquent Ad Valorem Taxes $65,911 $19,395 $0 $65,178 $0 $35,000 $20,000 -42.9% 101-000-0000-31030 Mobile Home Tax $8,596 $9,503 $8,000 $13,532 $8,000 $9,059 $8,000 -11.7% 101-000-0000-31040 Fiscal Disparities $169,645 $143,647 $0 $158,239 $0 $178,587 $120,000 -32.8% 101-000-0000-31910 Penalty & Interest on Taxes $4,790 $146 $0 $5,202 $0 $3,691 $5,180 40.4% 101-000-0000-33620 Gravel Tax $439 $925 $1,000 $689 $689 $0 $0 0.0% 101-000-0000-33622 Cable Franchise Revenue $35,367 $38,894 $36,500 $39,950 $43,000 $42,852 $42,852 0.0% Total Property Taxes/Franchise Fees $2,407,152 $2,483,808 $2,488,403 $2,547,940 $2,465,277 $2,646,905 $2,761,032 4.3% Licenses and Permits 101-000-0000-32110 Liquor License $9,875 $10,425 $8,000 $9,375 $125 $9,500 $3,000 -68.4% 101-000-0000-32180 Wastehauler License $230 $0 $200 $0 $200 $0 $0 0.0% 101-000-0000-32181 General Contractor License $4,925 $1,725 $2,000 $0 $0 $265 $165 -37.7% 101-000-0000-32183 Heating Contractor License $0 $995 $50 $3,560 $4,475 $5,250 $6,650 26.7% 101-000-0000-32184 Blacktopping Contractor License $0 $0 $50 $0 $0 $0 $0 0.0% 101-000-0000-32210 Building Permits $153,444 $138,972 $115,000 $189,552 $172,000 $176,784 $170,500 -3.6% 101-000-0000-32220 Heating Permits $10,465 $10,230 $6,000 $15,000 $13,200 $15,490 $15,600 0.7% 101-000-0000-32230 Plumbing Permits $6,591 $6,316 $3,500 $10,580 $7,500 $11,345 $9,000 -20.7% 101-000-0000-32231 Sewer Permits $561 $0 $300 $0 $0 $485 $485 0.0% 101-000-0000-32240 Animal License $3,073 $2,083 $2,000 $3,420 $2,060 $1,761 $1,991 13.1% 101-000-0000-32250 Utility Permits $14,217 $6,248 $5,000 $8,485 $7,200 $18,028 $11,000 -39.0% 101-000-0000-32260 Burning Permit $1,490 $1,300 $1,000 $1,310 $1,150 $2,640 $3,350 26.9% 101-000-0000-32270 Massage Therapy $0 $0 $0 $0 $0 $783 $150 -80.8% 101-000-0000-34104 Plan Check Fees $56,579 $52,125 $38,000 $89,265 $71,000 $94,020 $82,000 -12.8% Total Licenses and Permits $261,449 $230,420 $181,100 $330,547 $278,910 $336,351 $303,891 -9.7% Intergovernmental 101-000-0000-33402 Homestead Credit Aid $7,022 $7,879 $0 $0 $0 $0 $0 0.0% 101-000-0000-33418 MSA - Maintenance $77,347 $83,018 $75,000 $87,578 $98,022 $98,022 $98,022 0.0% 101-000-0000-33420 State Fire Aid $36,153 $40,692 $40,000 $38,824 $40,000 $56,778 $41,500 -26.9% 101-000-0000-33422 PERA Aid $2,749 $2,749 $2,749 $2,749 $2,749 $2,749 $2,749 0.0% 101-000-0000-33426 Miscellaneous State Grants $16,434 $22,824 $0 $162 $0 $1,365 $1,150 -15.7% 101-000-0000-33621 Recycling Grant $15,588 $15,588 $15,500 $15,588 $15,500 $15,588 $15,500 -0.6% Total Intergovernmental $155,293 $172,750 $133,249 $144,901 $156,271 $174,502 $158,921 -8.9%Charges for Services 101-000-0000-34103 Zoning & Subdivision Fees $7,480 $11,015 $5,500 $1,152 $1,000 $4,680 $1,250 -73.3% 101-000-0000-34105 Sale of Copies, Books, Maps $81 $173 $150 $258 $149 $311 $206 -33.7% 101-000-0000-34107 Assessment Searches $630 $445 $200 $1,060 $700 $1,415 $1,285 -9.2% 101-000-0000-34109 Clean Up Days $3,425 $3,058 $3,000 $3,256 $4,000 $2,647 $3,000 13.3% 101-000-0000-34111 Cable Operation Reimbursement $2,358 $2,307 $2,000 $2,018 $1,485 $2,526 $1,950 -22.8% Total Charges for Services $13,974 $16,998 $10,850 $7,744 $7,334 $11,579 $7,691 -33.6% Fines 101-000-0000-35100 Fines $68,897 $63,818 $53,000 $58,385 $60,000 $44,536 $48,000 7.8% Total Fines $68,897 $63,818 $53,000 $58,385 $60,000 $44,536 $48,000 7.8% Other 101-000-0000-36200 Miscellaneous Revenue $17,311 $20,405 $6,384 $42,599 $19,000 $10,056 $2,400 -76.1% 101-000-0000-36201 Internal Charges (Library procc fee)NA $5,458 $0 $1,166 $600 $1,154 $1,600 38.6% 101-000-0000-36210 Interest Earnings $59,710 $59,415 $20,000 $90,983 $20,000 $40,000 $20,000 -50.0% 101-000-0000-36230 Donations $8,022 $9,500 $8,000 $9,300 $7,500 $0 $0 0.0% Total Other $85,043 $94,778 $34,384 $144,048 $47,100 $51,210 $24,000 -53.1% Total Revenues $2,991,807 $3,062,573 $2,900,986 $3,233,564 $3,014,892 $3,265,082 $3,303,535 1.2% Other Financing Sources 101-000-0000-39200 Transfer In $0 $0 $0 $0 $0 $0 $0 0.0% Total Other Financing Sources $0 $0 $0 $0 $0 $0 $0 0.0% Total Revenues and Other Financing Sources $2,991,807 $3,062,573 $2,900,986 $3,233,564 $3,014,892 $3,265,082 $3,303,535 1.2% General Fund Revenues 10 City of Lake Elmo 2014 Budget 70.7% 3.2% 7.9% 5.7% 0.1% 1.4% 2.7% 2.1%6.2%* 2012 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library 70.7% 3.2% 7.9% 5.7% 0.1% 1.4% 2.7% 2.1%6.2%* 2012 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library 75.9% 4.2% 6.2% 7.5% 0.4% 1.7%2.5%1.3% 2011 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous 70.7% 3.2% 7.9% 5.7% 0.1% 1.4% 2.7% 2.1%6.2%* 2012 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library 70.7% 3.2% 7.9% 5.7% 0.1% 1.4% 2.7% 2.1%6.2%* 2012 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library 70.7% 3.2% 7.9% 5.7% 0.1% 1.4% 2.7% 2.1% 6.2%* 2012 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library 66.8% 4.6% 9.7% 5.0% 2.6% 1.4% 0.6%1.2% 8.1% Projected 2013 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library* 69.4% 3.6% 9.2% 4.8% 2.3%1.4% 0.6%0.7% 8.0% Projected 2014 General Special Assessments Licenses and Permits Intergovernmantal Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Library* GENERAL FUND REVENUES 11City of Lake Elmo 2014 Budget GENERAL FUND EXPENDITURES The modified accrual basis of accounting, as described in the general fund summary, is used to record general fund expenditures. The city expends its general operating budget in the following general activities: GENERAL GOVERNMENT This category includes the general costs for administra- tion of city government. Subdivisions include: • Mayor & Council • Administration • Elections • Communications • Finance • Planning & Zoning • Engineering Services • City Hall PUBLIC SAFETY These expenditures are for the protection of the gener- al public, including police and fire protection, building inspection, and costs for prosecutions. Subdivisions in- clude: • Police • Prosecution • Fire • Fire Relief • Building Inspection • Emergency Communications • Animal Control PUBLIC WORKS This department maintains the city public works, includ- ing buildings, grounds, and streets. Subdivisions include: • Public Works • Streets • Ice and Snow Removal • Street Lighting • Recycling • Tree Program CULTURE & RECREATION This department maintains the city parks and park build- ings. The lone subdivision is: • Parks & Recreation COMPENSATION ADJUSTMENT These expenditures are for employee compensation in- creases and may be allocated to other departments. TRANSFERS OUT Transfers are scheduled from the general fund to various other city funds. 12 City of Lake Elmo 2014 Budget 2013 2013 Dept 2010 2011 2012 2012 2013 Projected 2014 to 2014 Number Description Actual Actual Budget Actual Budget Actual Budget Change General Government 1110 Mayor & Council $34,894 $36,418 $35,392 $24,208 $39,803 $44,349 $45,270 -2.1% 1320 Administration $433,531 $507,492 $470,410 $484,915 $374,599 $382,218 $396,539 -3.7% 1410 Elections $9,748 $5,527 $11,950 $13,857 $11,950 $1,040 $13,350 -1183.7% 1450 Communications $51,676 $46,263 $57,676 $52,689 $85,233 $77,220 $79,130 -2.5% 1520 Finance $122,006 $135,063 $107,917 $151,572 $105,815 $159,600 $156,285 2.1% 1910 Planning & Zoning $176,024 $184,989 $172,037 $165,068 $152,068 $254,101 $273,059 -7.5% 1930 Engineering Services $57,927 $67,639 $70,000 $69,864 $60,000 $39,345 $48,000 -22.0% 1940 City Hall $35,785 $35,654 $39,800 $32,846 $36,400 $29,874 $27,133 9.2% Total General Government $921,590 $1,019,046 $965,182 $995,020 $865,868 $987,747 $1,038,766 -5.2% Public Safety 2100 Police $481,243 $452,262 $493,000 $492,911 $560,000 $495,759 $500,000 -0.9% 2150 Prosecution $48,549 $46,440 $51,000 $47,224 $51,000 $52,194 $51,000 2.3% 2220 Fire $349,764 $347,532 $388,300 $340,362 $444,774 $360,602 $399,656 -10.8% 2250 Fire Relief $55,081 $47,867 $40,000 $39,956 $40,000 $53,778 $37,324 30.6% 2400 Building Inspection $111,744 $95,081 $95,541 $133,154 $104,221 $164,288 $157,602 4.1% 2500 Emergency Communications $6,798 $5,250 $6,000 $6,194 $6,000 $3,745 $5,800 -54.9% 2700 Animal Control $10,997 $2,301 $7,700 $1,319 $7,000 $9,752 $6,282 35.6% Total Public Safety $1,064,174 $996,733 $1,081,541 $1,061,120 $1,212,995 $1,140,117 $1,157,663 -1.5% Public Works 3100 Public Works $252,687 $267,004 $287,249 $278,967 $290,867 $313,011 $338,270 -8.1% 3120 Streets $58,568 $60,471 $72,000 $38,597 $67,200 $86,765 $64,800 25.3% 3125 Ice & Snow Removal $115,833 $75,960 $81,000 $45,320 $80,000 $85,697 $96,000 -12.0% 3160 Street Lighting $23,405 $30,008 $24,500 $38,691 $25,200 $25,677 $28,800 -12.2% 3200 Recycling $7,137 $3,829 $13,000 $12,776 $11,300 $7,584 $7,400 2.4% 3250 Tree Program $15,665 $10,358 $5,000 $4,126 $5,000 $11,325 $5,000 55.8% Total Public Works $473,295 $447,630 $482,749 $447,630 $482,749 $530,059 $540,270 -1.9% Culture & Recreation 5200 Parks & Recreation $155,547 $143,049 $183,103 $145,775 $189,765 $170,250 $216,837 -27.4% Total Culture & Recreation $155,547 $143,049 $183,103 $145,775 $189,765 $170,250 $216,837 -27.4% Compensation Adjustment 9000 Compensation Adjustment $0 $0 $13,411 $13,411 $0 $0 $0 0.0% Total Compensation Adjustment $0 $0 $13,411 $13,411 $0 $0 $0 0.0% Total Expenditures $2,614,607 $2,606,457 $2,725,986 $2,662,956 $2,751,377 $2,828,174 $2,953,535 -4.4% Other Financing Uses Transfers Out $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $360,000 0.0% Total Other Financing Uses $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $360,000 0.0% Total Expenditures and Other Financing Uses $2,741,457 $2,836,962 $2,900,986 $2,914,126 $3,116,377 $3,188,174 $3,313,535 -3.9% Expenditures by Classification Personnel Services $1,051,984 $1,089,826 $1,189,271 $1,126,560 $1,234,965 $1,319,247 $1,463,489 -10.9% Supplies $177,297 $158,567 $178,350 $132,361 $200,693 $207,176 $197,196 4.8% Other Services and Charges $1,385,326 $1,358,064 $1,358,365 $1,404,034 $1,363,234 $1,312,750 $1,292,850 1.5% Capital Outlay $0 $0 $0 $0 $0 $0 $0 0.0% Total Expenditures $2,614,607 $2,606,457 $2,725,986 $2,662,956 $2,798,891 $2,839,174 $2,953,535 -4.0% Transfers Out $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $360,000 0.0% Total Expenditures and Other Financing Uses $2,741,457 $2,836,962 $2,900,986 $2,914,126 $3,163,891 $3,199,174 $3,313,535 -3.6% General Fund Expenditures Summary 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1110 Mayor & Council Personnel Services 101-410-1110-41030 Part-time Salaries $16,435 $16,435 $16,435 $16,435 $25,690 $25,690 $25,690 0.0% 101-410-1110-41220 FICA Contributions $1,019 $1,019 $1,019 $1,019 $1,593 $1,593 $1,593 0.0% 101-410-1110-41230 Medicare Contributions $238 $238 $238 $238 $373 $373 $373 0.0% Workers Compensation $0 $0 $0 $36 $36 $326 $300 8.0% Total Personnel Services $17,692 $17,692 $17,692 $17,728 $27,692 $27,981 $27,956 0.1% Other Services and Charges 101-410-1110-43310 Mileage $479 $0 $1,000 $470 $1,000 $453 $800 -76.6% 101-410-1110-44300 Miscellaneous $3,103 $1,313 $2,000 $767 $565 $1,618 $5,000 -209.1% 101-410-1110-44330 Dues & Subscriptions $11,584 $15,540 $11,200 $3,689 $8,391 $12,711 $10,514 17.3% 101-410-1110-44370 Conferences & Training $2,036 $1,873 $3,500 $1,555 $2,155 $1,586 $1,000 36.9% Total Other Services and Charges $17,201 $18,725 $17,700 $6,480 $12,111 $16,368 $17,314 -5.8% 1110 Total Mayor & Council $34,894 $36,418 $35,392 $24,208 $39,803 $44,349 $45,270 -2.1% -2.7%-7.1%28.8%-25.3% General Fund Expenditures Department Detail 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1320 Administration Personnel Services 101-410-1320-41010 Full-time Salaries $210,522 $226,504 $220,671 $221,050 $180,445 $164,381 $176,384 -7.3% 101-410-1320-41210 PERA Contributions $7,822 $9,645 $8,617 $15,308 $12,757 $11,796 $12,505 -6.0% 101-410-1320-41215 ICMA Employer Contribution $6,797 $6,230 $7,382 $0 $0 $0 $0 0.0% 101-410-1320-41220 FICA Contributions $12,863 $13,682 $13,682 $13,071 $10,992 $9,709 $10,604 -9.2% 101-410-1320-41230 Medicare Contributions $3,008 $3,200 $3,200 $3,057 $2,571 $2,271 $2,480 -9.2% 101-410-1320-41300 Health/Dental Insurance $30,374 $32,309 $33,548 $25,568 $37,532 $35,684 $47,636 -33.5%Add'l benef pos 101-410-1320-41420 Unemployment Benefits $5,218 $7,148 $0 $0 $0 $3,082 $0 100.0% 101-410-1320-41510 Workers Compensation $1,998 $2,141 $2,310 $1,121 $1,396 $728 $1,000 37.3% 101-410-1320-43150 Contract Services $0 $0 $0 $19,014 $0 $5,000 $0 100.0% Total Personnel Services $278,604 $300,860 $289,410 $298,189 $245,693 $232,651 $250,609 -7.7% Supplies 101-410-1320-42000 Office Supplies $3,679 $4,711 $6,000 $8,441 $5,239 $7,139 $6,000 16.0% 101-410-1320-42030 Printed Forms $1,050 $751 $1,000 $1,887 $364 $0 $0 0.0% Total Supplies $4,729 $5,462 $7,000 $10,327 $5,603 $7,139 $6,000 16.0% Other Services and Charges 101-410-1320-43040 Legal Services $55,739 $95,081 $65,000 $69,360 $48,000 $56,365 $60,000 -6.4% 101-410-1320-43100 Assessing Services $43,587 $46,384 $46,000 $44,978 $25,500 $32,234 $30,500 5.4% 101-410-1320-43190 Software Programs $0 $0 $0 $0 $0 $863 $0 100.0% 101-410-1320-43210 Telephone $0 $0 $0 $0 $0 $2,696 $4,045 -50.0% 101-410-1320-43220 Postage $3,746 $4,685 $6,500 $4,489 $3,600 $3,924 $4,000 -1.9% 101-410-1320-43310 Mileage $1,766 $1,492 $3,000 $1,010 $1,800 $1,051 $600 42.9% 101-410-1320-43510 Legal Publishing $0 $0 $0 $2,845 $158 $2,618 $2,400 8.3% 101-410-1320-43610 Insurance $38,563 $34,381 $39,500 $34,611 $38,800 $35,339 $35,000 1.0% 101-410-1320-44300 Miscellaneous $1,426 $16,719 $6,000 $8,858 $1,200 $3,059 $600 80.4% 101-410-1320-44330 Dues & Subscriptions $2,480 $1,775 $3,500 $807 $1,200 $1,366 $600 56.1% 101-410-1320-44370 Conferences & Training $2,766 $578 $3,500 $8,399 $2,176 $2,912 $2,185 25.0% 101-410-1320-44380 Staff Development $125 $74 $1,000 $1,043 $870 $0 $0 0.0% Total Other Services and Charges $150,198 $201,170 $174,000 $176,399 $123,304 $142,428 $139,930 1.8% 1320 Total Administration $433,531 $507,492 $470,410 $484,915 $374,599 $382,218 $396,539 -3.7% 7.7%-7.0%-2.2%18.7% 14 City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1410 Elections Personnel Services 101-410-1410-41030 Part-time Salaries $7,836 $2,147 $10,000 $9,873 $0 $100 $10,000 -9900.0% 101-410-1410-41220 FICA Contributions $0 $0 $0 $0 $0 $0 $0 0.0% 101-410-1410-41230 Medicare Contributions $0 $0 $0 $0 $0 $0 $0 0.0% Total Personnel Services $7,836 $2,147 $10,000 $9,873 $0 $100 $10,000 -9900.0% Supplies 101-410-1410-42000 Office Supplies $56 $0 $250 $1,125 $150 $0 $500 0.0% 101-410-1410-42030 Printed Forms $0 $0 $350 $350 $450 $0 $350 0.0% Total Supplies $56 $0 $600 $1,475 $600 $0 $850 0.0% Other Services and Charges 101-410-1410-43150 Contract Services $0 $2,147 $0 $0 $0 $940 $950 -1.1% 101-410-1410-44300 Miscellaneous $1,857 $1,233 $1,350 $2,509 $11,350 $0 $1,550 0.0% Total Other Services and Charges $1,857 $3,380 $1,350 $2,509 $11,350 $940 $2,500 -166.0% Capital Outlay 101-410-1410-45800 Other Equipment $0 $0 $0 $0 $0 $0 $0 0.0% Total Capital Outlay $0 $0 $0 $0 $0 $0 $0 0.0% 1410 Total Elections $9,748 $5,527 $11,950 $13,857 $11,950 $1,040 $13,350 -1183.7% 18.4%-309.4%-926.5%91.3%2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1450 Communications Personnel Services 101-410-1450-41010 Full-time Salaries $6,110 $5,427 $11,117 $9,667 $35,000 $18,420 $13,390 27.3% 101-410-1450-41210 PERA Contributions $428 $394 $806 $701 $2,538 $1,335 $971 27.3% 101-410-1450-41220 FICA Contributions $379 $336 $689 $591 $2,170 $1,106 $830 24.9% 101-410-1450-41230 Medicare Contributions $89 $79 $161 $138 $508 $259 $194 24.9% 101-410-1450-41300 Health/Dental Insurance $0 $0 $0 $0 $0 $3,264 $3,120 0.0% 101-410-1450-41510 Workers Compensation $457 $467 $503 $56 $56 $85 $110 -29.1% Total Personnel Services $7,462 $6,703 $13,276 $11,153 $40,272 $24,469 $18,615 23.9% Other Services and Charges 101-410-1450-43090 Newsletter $5,113 $5,093 $5,400 $6,897 $12,061 $9,786 $8,000 18.3% 101-410-1450-42000 Office Supplies $0 $0 $0 $91 $200 $1,026 $304 70.3% 101-410-1450-43180 Information Technology/Web $31,040 $28,229 $31,500 $29,711 $24,000 $31,538 $42,000 -33.2% 101-410-1450-43210 Telephone $0 $0 $0 $466 $3,000 $1,171 $1,560 -33.2% 101-410-1450-43510 Public Notices $1,239 $2,964 $3,500 $860 $2,400 $6,464 $4,200 35.0% 101-410-1450-43620 Cable Operations $3,890 $3,275 $4,000 $3,361 $3,300 $2,063 $3,600 -74.5% 101-410-1450-44370 Conferences $0 $0 $0 $0 $0 $498 $800 -60.6% 101-410-1450-44040 Repairs/Maint Eqpt $2,932 $0 $0 $150 $0 $206 $50 75.7% Total Other Services and Charges $44,214 $39,560 $44,400 $41,536 $44,961 $52,752 $60,514 -14.7% 1450 Total Communications $51,676 $46,263 $57,676 $52,689 $85,233 $77,220 $79,130 -2.5% 6.6%20.6%9.6%-33.9% 15City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1520 Finance Personnel Services 101-410-1520-41010 Full-time Salaries $34,203 $44,968 $34,674 $40,211 $54,917 $87,886 $87,880 0.0% 101-410-1520-41210 PERA Contributions $2,394 $1,982 $2,514 $2,403 $3,981 $6,393 $6,371 0.3% 101-410-1520-41220 FICA Contributions $2,107 $2,766 $2,150 $2,199 $3,405 $5,183 $5,449 -5.1% 101-410-1520-41230 Medicare Contributions $493 $647 $503 $514 $796 $1,212 $1,274 -5.1% 101-410-1520-41300 Health/Dental Insurance $3,827 $3,353 $3,826 $6,132 $8,616 $18,496 $19,936 -7.8% 101-410-1520-41420 Unemployment Benefits $0 $0 $0 $11,343 $0 $0 $0 0.0% 101-410-1520-41510 Workers Compensation $182 $232 $250 $176 $0 $405 $600 -48.1% Total Personnel Services $43,205 $53,948 $43,917 $62,978 $71,715 $119,575 $121,510 -1.6% Supplies 101-410-1520-42000 Office Supplies $51 $477 $500 $484 $400 $409 $300 26.7% 101-410-1520-42030 Printed Forms $0 $1,154 $500 $237 $500 $0 $0 0.0% Total Supplies $51 $1,631 $1,000 $720 $900 $409 $300 26.7% Other Services and Charges 101-410-1520-43010 Audit Services $32,035 $23,670 $30,000 $26,810 $20,500 $20,500 $27,000 -31.7% 101-410-1520-43150 Contract Services $43,336 $54,302 $30,000 $58,570 $10,000 $15,925 $4,500 71.7% 101-410-1520-43210 Telephone $0 $0 $0 $0 $0 $741 $1,200 -61.9% 101-410-1520-43310 Mileage $0 $0 $100 $169 $0 $44 $50 -12.6% 101-410-1520-44300 Miscellaneous $3,378 $1,492 $2,500 $1,819 $1,500 $1,561 $1,150 26.3% 101-410-1520-44330 Dues & Subscriptions $0 $0 $100 $0 $100 $185 $0 100.0% 101-410-1520-44350 Books $0 $0 $0 $0 $0 $185 $0 100.0% 101-410-1520-44370 Conferences & Training $0 $20 $300 $505 $1,100 $475 $575 -21.1% Total Other Services and Charges $78,749 $79,484 $63,000 $87,873 $33,200 $39,616 $34,475 13.0% 1520 Total Finance $122,006 $135,063 $107,917 $151,572 $105,815 $159,600 $156,285 2.1% -15.2%-25.0%-40.3%-47.9% 16 City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1910 Planning & Zoning Personnel Services 101-410-1910-41010 Full-time Salaries $99,830 $108,534 $104,109 $91,970 $103,487 $152,013 $159,874 -5.2% 101-410-1910-41210 PERA Contributions $6,814 $7,156 $7,548 $6,120 $7,503 $11,311 $11,591 -2.5% 101-410-1910-41220 FICA Contributions $5,940 $6,358 $6,455 $5,373 $6,416 $9,185 $9,912 -7.9% 101-410-1910-41230 Medicare Contributions $1,389 $1,487 $1,510 $1,256 $1,424 $2,148 $2,318 -7.9% 101-410-1910-41300 Health/Dental Insurance $21,185 $20,192 $22,566 $10,171 $10,638 $27,488 $34,814 -26.7% 101-410-1910-41510 Workers Compensation $546 $696 $749 $426 $500 $751 $800 -6.5% Total Personnel Services $135,703 $144,422 $142,937 $115,317 $129,968 $202,896 $219,309 -8.1% Supplies 101-410-1910-42000 Office Supplies $130 $93 $750 $493 $600 $3,080 $2,000 35.1% 101-410-1910-42030 Printed Forms $271 $586 $0 $0 $0 $678 $750 -10.6% Total Supplies $402 $679 $750 $493 $600 $3,758 $2,750 26.8% Other Services and Charges 101-410-1910-43020 Comprehensive Planning $527 $0 $10,000 $414 $0 $0 $0 0.0% 101-410-1910-43030 Engineering Services $19,132 $31,336 $12,000 $22,065 $18,000 $23,793 $36,000 -51.3% 101-410-1910-43040 Legal Services $13,248 $0 $0 $0 $0 $0 $0 0.0% 101-410-1910-43150 Contract Services $2,929 $6,592 $3,000 $22,367 $0 $14,869 $10,000 32.7% Software Programs $0 $0 $0 $0 $0 $2,952 $0 100.0% 101-410-1910-43210 Telephone $0 $0 $0 $0 $0 $1,187 $1,200 -1.1% 101-410-1910-43220 Postage $0 $0 $0 $0 $0 $60 $200 -233.3% 101-410-1910-43310 Mileage $100 $91 $400 $173 $360 $0 $200 0.0% 101-410-1910-44300 Miscellaneous $736 $20 $400 $3,175 $240 $1,072 $500 53.4% 101-410-1910-44330 Dues & Subscriptions $495 $515 $750 $66 $600 $600 $600 0.0% 101-410-1910-44350 Books $0 $305 $300 $165 $200 $481 $300 37.6% 101-410-1910-44370 Conferences & Training $2,752 $1,029 $1,500 $834 $2,100 $2,432 $2,000 17.8% Total Other Services and Charges $39,919 $39,889 $28,350 $49,258 $21,500 $47,446 $51,000 -7.5% 1910 Total Planning & Zoning $176,024 $184,989 $172,037 $165,068 $152,068 $254,101 $273,059 -7.5% 3.6%0.9%11.6%-47.7% 17City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1930 Engineering Services Other Services and Charges 101-410-1930-43030 Engineering Services $57,927 $67,639 $70,000 $69,864 $60,000 $39,345 $48,000 -22.0% Total Other Services and Charges $57,927 $67,639 $70,000 $69,864 $60,000 $39,345 $48,000 -22.0% 1930 Total Engineering Services $57,927 $67,639 $70,000 $69,864 $60,000 $39,345 $48,000 -22.0% 17.2%3.4%0.2%43.8% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 1940 City Hall Supplies 101-410-1940-42110 Cleaning Supplies $737 $475 $600 $206 $600 $7 $25 -234.2% 101-410-1940-42230 Building Repair Supplies $206 $214 $800 $370 $900 $87 $200 -129.9% Total Supplies $943 $689 $1,400 $576 $1,500 $94 $225 -138.1% Other Services and Charges 101-410-1940-43210 Telephone $7,426 $7,826 $8,600 $6,519 $8,600 $2,699 $2,400 11.1% 101-410-1940-43810 Electric Utility $8,603 $10,407 $11,500 $10,148 $10,800 $10,312 $13,200 -28.0% 101-410-1940-43840 Refuse $1,140 $1,290 $1,300 $1,738 $1,300 $1,300 $1,408 -8.3% 101-410-1940-44010 Repairs/Maint Contractual Bldg $14,718 $11,332 $11,000 $8,504 $8,400 $9,488 $7,200 24.1% 101-410-1940-44040 Repairs/Maint Contractual Eqpt $2,284 $4,099 $5,000 $3,935 $4,800 $5,823 $2,400 58.8% 101-410-1940-44300 Miscellaneous $670 $11 $1,000 $1,426 $1,000 $158 $300 -89.9% Total Other Services and Charges $34,841 $34,965 $38,400 $32,270 $34,900 $29,780 $26,908 9.6% 1940 Total City Hall $35,785 $35,654 $39,800 $32,846 $36,400 $29,874 $27,133 9.2% 12.2%9.7%16.8%24.9% 18 City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 2100 Police Other Services and Charges 101-420-2100-43150 Law Enforcement Contract $481,243 $452,262 $493,000 $492,911 $560,000 $495,759 $500,000 -0.9% Total Other Services and Charges $481,243 $452,262 $493,000 $492,911 $560,000 $495,759 $500,000 -0.9% 2100 Total Police $481,243 $452,262 $493,000 $492,911 $560,000 $495,759 $500,000 -0.9% Public Safety 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Public Safety 2150 Prosecution Other Services and Charges 101-420-2150-43045 Attorney Criminal $48,549 $46,440 $51,000 $47,224 $51,000 $52,194 $51,000 2.3% Total Other Services and Charges $48,549 $46,440 $51,000 $47,224 $51,000 $52,194 $51,000 2.3% 2150 Total Prosecution $48,549 $46,440 $51,000 $47,224 $51,000 $52,194 $51,000 2.3% 19City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Public Safety 2220 Fire Personnel Services 101-420-2220-41010 Full-time Salaries $63,626 $64,572 $64,684 $68,090 $78,100 $73,591 $74,119 -0.7% 101-420-2220-41030 Part-time Salaries $73,895 $72,321 $112,500 $94,811 $131,000 $111,001 $109,456 1.4% 101-420-2220-41210 PERA Contributions $8,736 $10,314 $10,016 $11,535 $15,160 $12,250 $11,785 3.8% 101-420-2220-41220 FICA Contributions $4,822 $4,224 $7,344 $5,215 $12,964 $6,267 $11,382 -81.6% 101-420-2220-41230 Medicare Contributions $1,958 $1,931 $2,592 $2,291 $3,032 $2,597 $2,662 -2.5% 101-420-2220-41300 Health/Dental Insurance $14,186 $14,355 $14,322 $14,647 $15,320 $13,704 $15,990 -16.7% 101-420-2220-41510 Workers Compensation $12,902 $13,190 $15,492 $8,135 $10,130 $8,042 $9,000 -11.9% Total Personnel Services $180,124 $180,907 $226,950 $204,724 $265,706 $227,452 $234,394 -3.1% Supplies 101-420-2220-42000 Office Supplies $906 $828 $1,000 $971 $500 $3,019 $500 83.4% 101-420-2220-42080 EMS Supplies $781 $1,312 $1,200 $3,112 $2,358 $1,125 $4,900 -335.6% 101-420-2220-42090 Fire Prevention $2,427 $2,973 $3,000 $1,114 $3,000 $3,049 $3,000 1.6% 101-420-2220-42120 Fuel, Oil and Fluids $9,511 $12,174 $10,800 $12,581 $13,632 $12,687 $14,000 -10.3% 101-420-2220-42400 Small Tools & Equipment $9,254 $6,820 $9,500 $19,610 $31,000 $8,917 $22,500 -152.3% Total Supplies $22,879 $24,107 $25,500 $37,388 $50,490 $28,797 $44,900 -55.9% Other Services and Charges 101-420-2220-43050 Physicals $8,060 $2,146 $9,250 $7,684 $7,416 $2,212 $6,900 -211.9% 101-420-2220-43180 Information Technology $0 $0 $0 $0 $0 $657 $0 100.0% 101-420-2220-43210 Telephone $4,156 $3,133 $5,000 $3,571 $3,000 $3,928 $4,200 -6.9% 101-420-2220-43230 Radio $19,177 $19,223 $18,500 $12,437 $15,784 $16,276 $16,203 0.4% 101-420-2220-43310 Mileage $790 $25 $600 $0 $200 $199 $350 -75.9% 101-420-2220-43630 Vehicle Insurance $13,980 $10,754 $14,000 $6,257 $12,000 $5,237 $5,237 0.0% 101-420-2220-43810 Electric Utility $10,589 $12,308 $12,500 $8,296 $11,500 $11,775 $21,600 -83.4% 101-420-2220-43840 Refuse $502 $568 $1,000 $477 $572 $780 $572 26.7% 101-420-2220-44010 Repairs/Maint Bldg $27,150 $9,201 $11,000 $5,466 $21,016 $15,329 $12,000 21.7% 101-420-2220-44040 Repairs/Maint Eqpt $31,221 $52,412 $25,000 $35,038 $21,137 $25,805 $41,000 -58.9% 101-420-2220-44170 Uniforms $3,584 $4,137 $8,200 $3,395 $9,903 $3,798 $3,000 21.0% 101-420-2220-44300 Miscellaneous $1,968 $1,665 $1,500 $908 $900 $1,268 $900 29.0% 101-420-2220-44330 Dues & Subscriptions $3,145 $3,551 $3,300 $2,966 $2,000 $2,597 $2,200 15.3% 101-420-2220-44350 Books $1,028 $789 $1,000 $0 $600 $481 $200 58.4% 101-420-2220-44370 Conferences & Training $21,411 $22,605 $25,000 $11,756 $22,550 $14,011 $6,000 57.2% Total Other Services and Charges $146,761 $142,519 $135,850 $98,250 $128,578 $104,353 $120,362 -15.3% Capital Outlay 101-420-2220-45800 Equipment $0 $0 $0 $0 $0 $0 $0 0.0% Total Capital Outlay $0 $0 $0 $0 $0 $0 $0 0.0% 2220 Total Fire $349,764 $347,532 $388,300 $340,362 $444,774 $360,602 $399,656 -10.8% 7.4%7.5%9.4%7.1% 20 City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Public Safety 2250 Fire Relief Other Services and Charges 101-420-2250-44920 Fire State Aid $36,153 $40,692 $40,000 $39,956 $40,000 $53,778 $37,324 30.6% 101-420-2250-44925 City Contribution $18,928 $7,175 $0 $0 $0 $0 $0 0.0% Total Other Services and Charges $55,081 $47,867 $40,000 $39,956 $40,000 $53,778 $37,324 30.6% 2250 Total Fire Relief $55,081 $47,867 $40,000 $39,956 $40,000 $53,778 $37,324 30.6% 4.8%-1.5%15.3%-34.4% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Public Safety 2400 Building Inspection Personnel Services 101-420-2400-41010 Full-time Salaries $59,430 $59,577 $60,818 $68,650 $74,716 $86,459 $95,992 -11.0% 101-420-2400-41210 PERA Contributions $4,145 $4,319 $4,409 $4,100 $4,860 $6,268 $6,959 -11.0% 101-420-2400-41220 FICA Contributions $3,611 $3,597 $3,771 $4,109 $4,112 $5,034 $5,952 -18.2% 101-420-2400-41230 Medicare Contributions $845 $841 $882 $961 $962 $1,177 $1,392 -18.2% 101-420-2400-41300 Health/Dental Insurance $7,961 $9,051 $8,585 $8,832 $9,210 $16,968 $24,102 -42.0% 101-420-2400-41510 Workers Compensation $2,533 $2,034 $2,186 $1,777 $2,000 $398 $398 0.0% Total Personnel Services $78,525 $79,420 $80,651 $88,429 $95,860 $116,304 $134,795 -15.9% Supplies 101-420-2400-42000 Office Supplies $0 $571 $300 $1,569 $0 $982 $1,447 -47.4% 101-420-2400-42030 Printed Forms $0 $146 $200 $0 $0 $147 $147 0.0% 101-420-2400-42120 Fuel, Oil and Fluids $0 $0 $0 $0 $0 $474 $466 0.0% Total Supplies $0 $717 $500 $1,569 $0 $1,603 $2,060 -28.5% Other Services and Charges 101-420-2400-43030 Engineering $10,434 $12,982 $10,000 $13,454 $0 $17,407 $10,000 42.6% 101-420-2400-43050 Plan Review Charges $0 $0 $0 $0 $0 $0 $0 100.0% 101-420-2400-43060 Surcharge Payments $0 $0 $0 $0 $6,000 $0 $0 100.0% 101-420-2400-43150 Inspector Contract Services $632 $386 $1,000 $23,244 $0 $6,276 $7,462 -18.9% 101-420-2400-43180 Information Technology $0 $0 $0 $0 $0 $863 $0 100.0% 101-420-2400-43190 Software Programs $0 $0 $0 $0 $0 $16,284 $0 100.0% 101-420-2400-43210 Telephone $307 $218 $400 $563 $216 $923 $548 40.6% 101-420-2400-43310 Mileage $0 $0 $100 $2,259 $100 $1,007 $600 40.4% 101-420-2400-43630 Insurance $903 $242 $800 $255 $255 $340 $340 0.0% 101-420-2400-44040 Repairs/Maint Eqpt $365 $341 $750 $572 $500 $563 $300 46.7% 101-420-2400-44170 Uniforms $0 $0 $0 $0 $0 $86 $0 100.0% 101-420-2400-44300 Miscellaneous $19,843 $0 $500 $826 $500 $1,597 $500 68.7% 101-420-2400-44330 Dues & Subscriptions $100 $75 $200 $175 $190 $0 $0 0.0% 101-420-2400-44350 Books $0 $0 $140 $1,113 $100 $198 $308 -55.7% 101-420-2400-44370 Conferences & Training $635 $700 $500 $695 $500 $837 $690 17.6% Total Other Services and Charges $33,219 $14,943 $14,390 $43,156 $8,361 $46,381 $20,748 55.3% Capital Outlay 101-420-2400-45800 Equipment $0 $0 $0 $0 $0 $0 $0 0.0% Total Capital Outlay $0 $0 $0 $0 $0 $0 $0 0.0% 2400 Total Building Inspection $111,744 $95,081 $95,541 $133,154 $104,221 $164,288 $157,602 4.1% -17.4%2.4%-36.7%-72.0% 21City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Public Safety 2500 Emergency Communications Other Services and Charges 101-420-2500-43150 Contract Services $6,798 $5,250 $6,000 $6,194 $6,000 $3,745 $5,800 -54.9% Total Other Services and Charges $6,798 $5,250 $6,000 $6,194 $6,000 $3,745 $5,800 -54.9% 2500 Total Emergency Communications $6,798 $5,250 $6,000 $6,194 $6,000 $3,745 $5,800 -54.9% 0.0%-110.0%-147.8%37.6% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Public Safety 2700 Animal Control Supplies 101-420-2700-42030 Printed Forms $0 $0 $100 $0 $0 $0 $0 0.0% Total Supplies $0 $0 $100 $0 $0 $0 $0 0.0% Other Services and Charges 101-420-2700-43150 Contract Services $10,913 $1,724 $7,500 $1,319 $7,000 $7,392 $5,842 21.0% 101-420-2700-44300 Miscellaneous $83 $578 $100 $0 $0 $2,360 $440 81.4% Total Other Services and Charges $10,997 $2,301 $7,600 $1,319 $7,000 $9,752 $6,282 35.6% 2700 Total Animal Control $10,997 $2,301 $7,700 $1,319 $7,000 $9,752 $6,282 35.6% 22 City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 3100 Public Works Personnel Services 101-430-3100-41010 Full-time Salaries $122,788 $124,524 $127,257 $128,376 $128,700 $155,206 $178,568 -15.1% 101-430-3100-41030 Part-time Salaries $0 $0 $12,573 $745 $0 $11,393 $0 100.0% 101-430-3100-41210 PERA Contributions $8,579 $9,028 $10,138 $9,361 $9,331 $12,290 $12,946 -5.3% 101-430-3100-41220 FICA Contributions $7,270 $7,222 $8,670 $7,503 $7,979 $9,924 $11,071 -11.6% 101-430-3100-41230 Medicare Contributions $1,700 $1,689 $2,027 $1,755 $1,866 $2,321 $2,589 -11.6% 101-430-3100-41300 Health/Dental Insurance $30,039 $32,519 $32,694 $33,234 $34,718 $34,788 $42,640 -22.6% 101-430-3100-41420 Unemployment Benefits $0 $0 $0 $0 $4,000 $0 $0 0.0% 101-430-3100-41510 Workers Compensation $13,980 $11,476 $12,565 $7,008 $12,000 $7,400 $8,000 -8.1% Total Personnel Services $184,356 $186,458 $205,924 $187,983 $198,594 $233,322 $255,815 -9.6% Supplies 101-430-3100-42000 Office Supplies $181 $0 $500 $1,140 $500 $1,681 $300 82.2% 101-430-3100-42150 Shop Materials $966 $992 $1,800 $1,058 $1,800 $780 $600 23.1% 101-430-3100-42210 Equipment Parts $0 $1,632 $1,800 $0 $0 $0 $0 0.0% 101-430-3100-42230 Building Repair Supplies $88 $641 $1,000 $0 $0 $229 $300 -31.0% 101-430-3100-42400 Small Tools & Minor Equipment $1,615 $1,256 $3,000 $698 $3,000 $1,625 $2,400 -47.7% Total Supplies $2,850 $4,520 $8,100 $2,896 $5,300 $4,315 $3,600 16.6% Other Services and Charges 101-430-3100-43030 Engineering Services $1,875 $2,189 $2,000 $9,276 $1,800 $8,507 $9,000 -5.8% 101-430-3100-43150 Contract Services $5,758 $4,803 $6,000 $4,897 $4,800 $5,045 $1,200 76.2% 101-430-3100-43108 Information Technology $0 $0 $0 $0 $0 $718 $0 100.0% 101-430-3100-43210 Telephone $8,013 $8,222 $8,000 $7,071 $8,000 $7,232 $7,661 -5.9% 101-430-3100-43230 Radio $0 $0 $300 $302 $3,600 $1,209 $1,500 -24.1% 101-430-3100-43310 Mileage $0 $0 $100 $0 $0 $0 $0 0.0% 101-430-3100-43630 Insurance $14,156 $13,274 $14,500 $20,276 $22,000 $19,772 $20,000 -1.2% 101-430-3100-43810 Electric Utility $16,565 $14,436 $21,000 $11,769 $24,000 $17,467 $24,000 -37.4% 101-430-3100-43840 Refuse $2,248 $2,476 $2,000 $2,078 $2,494 $2,286 $2,494 -9.1% 101-430-3100-44010 Repairs/Maint Bldg $5,627 $3,579 $3,000 $3,694 $3,000 $5,937 $1,200 79.8% 101-430-3100-44030 Repairs/Maint Imp Not Bldgs $0 $12,554 $500 $18,158 $500 $153 $600 -291.2% 101-430-3100-44040 Repairs/Maint Eqpt $1,331 $5,913 $4,500 $2,455 $6,000 $141 $3,600 -2458.1% 101-430-3100-44170 Uniforms $1,781 $1,639 $1,675 $1,561 $2,100 $899 $1,200 -33.5% 101-430-3100-44300 Miscellaneous $455 $327 $1,000 $985 $1,000 $1,011 $600 40.7% 101-430-3100-44330 Dues & Subscriptions $15 $60 $150 $85 $60 $56 $300 -435.7% 101-430-3100-44370 Conferences & Training $950 $620 $1,000 $0 $1,620 $460 $500 -8.7% 101-430-3100-44380 Clean-up Days $6,706 $5,933 $7,500 $5,479 $6,000 $4,481 $5,000 -11.6% Total Other Services and Charges $65,481 $76,026 $73,225 $88,088 $86,973 $75,374 $78,855 -4.6% Capital Outlay 101-430-3100-45800 Other Equipment $0 $0 $0 $0 $0 $0 $0 0.0% Total Capital Outlay $0 $0 $0 $0 $0 $0 $0 0.0% 3100 Total Public Works $252,687 $267,004 $287,249 $278,967 $290,867 $313,011 $338,270 -8.1% Public Works 23City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 3120 Streets Supplies 101-430-3120-42120 Fuel, Oil and Fluids $27,180 $31,203 $28,000 $22,716 $36,000 $47,782 $48,000 -0.5% 101-430-3120-42210 Equipment Parts $2,147 $2,786 $7,500 $2,096 $6,000 $4,226 $1,200 71.6% 101-430-3120-42240 Street Maintenance Materials $5,645 $11,457 $12,000 $6,617 $12,000 $20,195 $12,000 40.6% 101-430-3120-42260 Sign Repair Materials $2,647 $3,776 $3,000 $0 $3,000 $2,479 $0 100.0% Total Supplies $37,621 $49,222 $50,500 $31,429 $57,000 $74,682 $61,200 18.1% Other Services and Charges 101-430-3120-43150 Contract Services $11,327 $4,955 $13,500 $6,484 $10,200 $10,428 $1,200 88.5% 101-430-3120-44040 Repairs/Maint Eqpt $9,620 $6,294 $8,000 $685 $0 $1,655 $2,400 -45.0% Total Other Services and Charges $20,947 $11,250 $21,500 $7,169 $10,200 $12,083 $3,600 70.2% 3120 Total Streets $58,568 $60,471 $72,000 $38,597 $67,200 $86,765 $64,800 25.3% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 3125 Ice and Snow Removal Supplies 101-430-3125-42250 Landscaping Materials $484 $638 $1,000 $130 $0 $103 $0 100.0% 101-430-3125-42290 Sand/Salt $100,430 $64,876 $70,000 $36,741 $69,500 $72,732 $70,000 3.8% Total Supplies $100,913 $65,515 $71,000 $36,871 $69,500 $72,836 $70,000 3.9% Other Services and Charges 101-430-3125-43150 Contract Services $7,110 $5,255 $7,500 $4,433 $7,500 $7,308 $20,000 -173.7% 101-430-3125-44040 Repairs/Maint Eqpt $7,810 $5,191 $2,500 $4,017 $3,000 $5,553 $6,000 -8.0% Total Other Services and Charges $14,920 $10,445 $10,000 $8,449 $10,500 $12,861 $26,000 -102.2% 3125 Total Ice and Snow Removal $115,833 $75,960 $81,000 $45,320 $80,000 $85,697 $96,000 -12.0% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 3160 Street Lighting Other Services and Charges 101-430-3160-43810 Street Lighting $23,405 $30,008 $24,500 $38,691 $25,200 $25,677 $28,800 -12.2% Total Other Services and Charges $23,405 $30,008 $24,500 $38,691 $25,200 $25,677 $28,800 -12.2% 3160 Total Street Lighting $23,405 $30,008 $24,500 $38,691 $25,200 $25,677 $28,800 -12.2% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 3200 Recycling Supplies 101-430-3200-42100 Recycling Supplies $921 $971 $3,500 $2,408 $3,500 $3,584 $3,400 5.1% Total Supplies $921 $971 $3,500 $2,408 $3,500 $3,584 $3,400 5.1% Other Services and Charges 101-430-3200-43090 Newsletter $932 $0 $3,000 $0 $3,000 $0 $0 0.0% 101-430-3200-44300 Miscellaneous $5,284 $2,858 $6,500 $10,369 $4,800 $4,000 $4,000 0.0% Total Other Services and Charges $6,216 $2,858 $9,500 $10,369 $7,800 $4,000 $4,000 0.0% 3200 Total Recycling $7,137 $3,829 $13,000 $12,776 $11,300 $7,584 $7,400 2.4% 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 3250 Tree Program Other Services and Charges 101-430-3250-43150 Contract Services $15,665 $10,358 $5,000 $4,126 $5,000 $11,325 $5,000 55.8% Total Other Services and Charges $15,665 $10,358 $5,000 $4,126 $5,000 $11,325 $5,000 55.8% 3250 Total Tree Program $15,665 $10,358 $5,000 $4,126 $5,000 $11,325 $5,000 55.8% 24 City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 5200 Parks & Recreation Personnel Services 101-450-5200-41010 Full-time Salaries $66,653 $65,999 $78,164 $65,432 $111,591 $87,958 $121,950 -38.6% 101-450-5200-41030 Part-time Salaries $20,559 $19,720 $30,551 $24,603 $14,150 $17,974 $20,000 -11.3% 101-450-5200-41210 PERA Contributions $5,608 $5,728 $7,882 $5,897 $8,090 $6,945 $9,566 -37.7% 101-450-5200-41220 FICA Contributions $5,273 $5,112 $6,740 $5,399 $7,796 $6,311 $8,181 -29.6% 101-450-5200-41230 Medicare Contributions $1,233 $1,195 $1,576 $1,263 $1,823 $1,476 $1,913 -29.6% 101-450-5200-41300 Health/Dental Insurance $11,601 $12,521 $12,668 $11,636 $13,015 $9,727 $24,376 -150.6% 101-450-5200-41420 Unemployment Benefits $0 $0 $0 $0 $0 $0 $0 0.0% 101-450-5200-41510 Workers Compensation $7,551 $6,994 $7,522 $2,545 $3,000 $4,106 $4,500 -9.6% Total Personnel Services $118,477 $117,269 $145,103 $116,775 $159,465 $134,497 $190,487 -41.6% Supplies 101-450-5200-42000 Office Supplies $0 $0 $0 $0 $0 $0 $0 0.0% 101-450-5200-42120 Fuel, Oil and Fluids $0 $0 $0 $0 $0 $0 $0 0.0% 101-450-5200-42150 Shop Materials $177 $374 $600 $258 $0 $424 $0 100.0% 101-450-5200-42160 Chemicals $224 $304 $800 $320 $600 $741 $0 100.0% 101-450-5200-42210 Equipment Parts $1,807 $1,284 $2,500 $2,081 $1,800 $2,125 $24 98.9% 101-450-5200-42230 Building Repair Supplies $262 $0 $500 $0 $0 $11 $0 100.0% 101-450-5200-42250 Landscaping Materials $2,995 $1,711 $3,000 $2,926 $2,400 $3,781 $0 100.0% 101-450-5200-42400 Small Tools & Minor Equipment $466 $1,383 $1,000 $624 $900 $2,877 $1,888 34.4% Total Supplies $5,931 $5,056 $8,400 $6,210 $5,700 $9,959 $1,912 80.8% Other Services and Charges 101-450-5200-43210 Telephone $438 $975 $550 $1,107 $1,200 $1,079 $1,598 -48.0% 101-450-5200-43310 Mileage $0 $0 $100 $0 $0 $0 $0 0.0% 101-450-5200-43630 Insurance $4,969 $3,595 $5,000 $3,364 $5,000 $3,683 $3,683 0.0% 101-450-5200-43810 Electric Utility $9,362 $8,656 $9,500 $6,686 $9,000 $8,541 $9,840 -15.2% 101-450-5200-43840 Refuse $2,188 $2,553 $2,500 $2,117 $2,500 $2,494 $2,500 -0.2% 101-450-5200-44010 Repairs/Maint Bldg $0 $80 $700 $340 $300 $335 $1,724 -414.4% 101-450-5200-44030 Repairs/Maint Imp Not Bldgs $9,359 $266 $4,000 $3,690 $600 $3,563 $274 92.3% 101-450-5200-44040 Repairs/Maint Eqpt $119 $427 $2,000 $23 $1,200 $0 $0 0.0% 101-450-5200-44120 Rentals - Buildings $4,551 $3,869 $4,500 $5,229 $4,800 $5,262 $3,600 31.6% 101-450-5200-44300 Miscellaneous $154 $302 $750 $235 $0 $837 $1,220 -45.8% Total Other Services and Charges $31,139 $20,724 $29,600 $22,790 $24,600 $25,794 $24,438 5.3% 5200 Total Parks & Recreation $155,547 $143,049 $183,103 $145,775 $189,765 $170,250 $216,837 -27.4% 18.61%25.97%24.56%7.02% Culture & Recreation 25City of Lake Elmo 2014 Budget Projected 2013 2010 2011 2012 2012 2013 2013 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 9000 Compensation Adjustment Personnel Services 101-460-9000-41010 Compensation Adjustment*$0 $0 $13,411 $13,411 $0 $0 $0 0.0% Total Personnel Services $0 $0 $13,411 $13,411 $0 $0 $0 0.0% 9000 Total Compensation Adjustment $0 $0 $13,411 $13,411 $0 $0 $0 0.0% * presented in departmental detail for clearer reporting Compensation Adjustment 2-52 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change 9360 Other Financing Uses Transfers Out 101-493-9360-47200Transfers Out $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $381,632 -6.0% Total Transfers Out $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $381,632 -6.0% 9360 Total Other Financing Uses $126,850 $230,505 $175,000 $251,170 $365,000 $360,000 $381,632 -6.0% Transfers Out Detail: Donation Passed Through to Fall Festival Fund $8,000 $5,000 $8,000 $5,000 $5,000 $0 $0 0.0% Interfund Debt Paydown $0 $0 $0 $200,000 $200,000 $200,000 $200,000 0.0% Debt Serviice Levy Paydown $0 $0 $0 $0 $0 $0 $21,632 0.0% Infrastructure Reserve Fund (sealcoating)$0 $100,000 $100,000 $0 $160,000 $160,000 $160,000 0.0% Vehicle Replacement Fund $68,850 $6,000 $6,000 $0 $0 $0 $0 0.0% Radio Replacement Internal Service Fund $0 $6,000 $6,000 $0 $0 $0 $0 0.0% Information Technology Replacement Fund $0 $6,000 $6,000 $0 $0 $0 $0 0.0% FFE Replacement Fund (fire turnout gear)$0 $42,388 $24,000 $46,170 $0 $0 $0 0.0% Water Fund (offset future deficit cash balance)$50,000 $50,000 $25,000 $0 $0 $0 $0 0.0% $126,850 $215,388 $175,000 $251,170 $365,000 $360,000 $381,632 -6.0% Other Financing Uses 2-54 26 City of Lake Elmo 2014 Budget SPECIAL REVENUE FUNDS SUMMARY3 PURPOSE 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: • Development Fund • Elmo Days Fund • Library Fund Annual appropriated budgets are adopted during the year for the city’s special revenue funds and are not part of the general fund. 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 un- til 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 prin- ciples generally accepted in the United States of America. 2013 2013 Fund 2010 2011 2012 2012 2013 Projected 2014 to 2014 Number Description Actual Actual Budget Actual Budget Actual Budget Change Revenues and Other Financing Sources 203 Development Fund $540 $9,217 $0 $0 $0 $0 $10,100 0.0% 204 Lake Elmo Days $18,164 $13,985 $18,500 $8,701 $18,400 $20,744 $25,000 20.5% 206 Library $0 $0 $260,078 $269,489 $286,700 $276,757 $268,357 -3.0% Total Revenues and Other Financing Sources $18,704 $23,202 $278,578 $278,190 $305,100 $297,501 $303,457 2.0% Expenditures and Other Financing Uses 203 Development Fund $28,404 $25,191 $0 $200 $0 $0 $10,100 0.0% 204 Lake Elmo Days $13,422 $18,222 $10,500 $15,874 $16,700 $16,014 $19,000 -18.6% 206 Library $0 $7,477 $261,040 $341,519 $286,700 $236,532 $268,357 -13.5% Total Expenditures and Other Financing Uses $41,826 $50,889 $271,540 $357,593 $303,400 $252,546 $297,457 -17.8% TOTAL SPECIAL REVENUE FUNDS ($23,121)($27,687)$7,038 ($79,403)$1,700 $44,955 $6,000 86.7% Fund Balance Fund Balance, Beginning of Year $50,445 $27,324 $25,324 $27,324 $25,324 ($79,765)($34,809)56.4% Net Change in Fund Balance ($23,121)($27,687)$7,038 ($27,687)$7,038 $44,955 $6,000 86.7% Fund Balance, Ending of Year $27,324 ($363)$32,362 ($363)$32,362 ($34,810)($28,810)17.2% Special Revenue Funds 27City of Lake Elmo 2014 Budget DEVELOPMENT FUND (203) BUDGETARY OBJECTIVE A Development special revenue fund was created in the City’s 2007 financial records to account for major devel- oper-related projects, including the following: • Whistling Valley 1st, 2nd, and 3rd • Hidden Meadows 1st • Park Meadows • Tapestry • The Farms of Lake Elmo • Discover Crossing • Sanctuary This fund accounted for costs associated with these or similar projects. This fund was previously closed in 2011. Since there is considerable new expansion/development planned for 2014-2018, this fund will once again be uti- lized starting in 2014. However, due to the focus on devel- oper payment of all development expenses the activity in this fund should be minimal. 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Revenues Charges for Services 203-000-0000-34103 Zoning & Subdivision Fees $0 $0 $0 $0 $0 $0 $10,000 100.0% Total Charges for Services $0 $0 $0 $0 $0 $0 $10,000 0.0% Other 203-000-0000-36210 Interest Earnings $540 $101 $0 $0 $0 $0 $100 100.0% 203-000-0000-39200 Transfer In $0 $9,117 $0 $0 $0 $0 $0 0.0% Total Other $540 $9,217 $0 $0 $0 $0 $100 100.0% Total Revenues $540 $9,217 $0 $0 $0 $0 $10,100 100.0% Expenditures Other Services and Charges 203-490-9070-43030 Engineering Services $24,216 $20,116 $0 $0 $0 $0 $3,600 -100.0% 203-490-9070-43040 Legal Services $3,400 $3,796 $0 $0 $0 $0 $1,500 -100.0% 203-490-9070-43150 Contract Services $789 $1,279 $0 $200 $0 $0 $5,000 -100.0% Total Other Services and Charges $28,404 $25,191 $0 $200 $0 $0 $10,100 -100.0% Total Expenditures $28,404 $25,191 $0 $200 $0 $0 $10,100 -100.0% Development Fund ($27,863)($15,973)$0 ($200)$0 $0 $0 0.0% Fund Balance Fund Balance, Beginning of Year $43,836 $15,973 $5,973 $0 ($200)($200)($200)0.0% Net Change in Fund Balance ($27,863)($15,973)$0 ($200)$0 $0 $0 0.0% Fund Balance, Ending of Year $15,973 ($1)$5,973 ($200)($200)($200)($200)0.0% Development Fund 28 City of Lake Elmo 2014 Budget LAKE ELMO DAYS FUND (204) BUDGETARY OBJECTIVE This fund was created to account for activities of the an- nual Community Event to celebrate Lake Elmo, including donations received and expenditures incurred. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Donations (36230) Public and private donations to be used in funding the costs of the annual Lake Elmo Days Event. EXPENDITURES & OTHER FINANCING USES • A variety of line items listing the projected expendi- tures needed in preparation for and during the annual Lake Elmo Days Event. • The event has been increasing in size each year due to the addition of the new Communications Coordina- tor and the great strides she has made in getting local businesses and residents involved again. 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Revenues Other 204-000-0000-36210 Interest Earnings $193 $131 $0 $0 $0 $0 $0 0.0% 204-000-0000-36230 Donations/Silent Auction $9,971 $8,854 $10,500 $8,701 $18,400 $20,744 $25,000 20.5% Total Other $10,164 $8,985 $10,500 $8,701 $18,400 $20,744 $25,000 20.5% Total Revenues $10,164 $8,985 $10,500 $8,701 $18,400 $20,744 $25,000 20.5% Other Financing Sources 204-000-0000-39200 Transfers In $8,000 $5,000 $8,000 $0 $0 $0 $0 0.0% Total Other Financing Sources $8,000 $5,000 $8,000 $0 $0 $0 $0 0.0% Total Revenues and Other Financing Sources $18,164 $13,985 $18,500 $8,701 $18,400 $20,744 $25,000 20.5% Expenditures Supplies 204-450-5200-42000 Office Supplies $0 $118 $1,000 $3,146 $3,000 $1,750 $2,500 -42.9% Total Supplies $0 $118 $1,000 $3,146 $3,000 $1,750 $2,500 -42.9% Other Services and Charges 204-450-5200-43150 Contract Services $4,696 $4,106 $5,000 $5,554 $5,700 $5,295 $6,000 -13.3% 204-450-5200-43610 Insurance $0 $719 $500 $380 $500 $500 $500 0.0% 204-450-5200-44300 Miscellaneous $8,726 $13,279 $4,000 $6,794 $7,500 $8,469 $10,000 -18.1% Total Other Services and Charges $13,422 $18,103 $9,500 $12,728 $13,700 $14,264 $16,500 -15.7% Total Expenditures $13,422 $18,222 $10,500 $15,874 $16,700 $16,014 $19,000 -18.6% Fall Festival $4,742 ($4,237)$8,000 ($7,173)$1,700 $4,730 $6,000 -26.8% Fund Balance Fund Balance, Beginning of Year $6,609 $11,351 $19,351 $7,114 ($59)($59)$4,672 8027.2% Net Change in Fund Balance $4,742 ($4,237)$8,000 ($7,173)$1,700 $4,730 $6,000 26.8% Fund Balance, Ending of Year $11,351 $7,114 $27,351 ($59)$1,641 $4,672 $10,672 128.4% Lake Elmo Days (Fall Festival) 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Revenues Taxes 206-000-0000-31010 Current Ad Valorem Taxes $0 $0 $260,078 $260,078 $256,950 $256,957 $256,957 0.0% Total Taxes $0 $0 $260,078 $260,078 $256,950 $256,957 $256,957 0.0% Other 206-000-0000-36210 Interest Earnings $0 $0 $0 $0 $0 $0 $0 0.0% 206-000-0000-34110 Rental Income $0 $0 $0 $9,341 $29,750 $19,800 $11,400 -42.4% 206-000-0000-36230 Donations $0 $0 $0 $70 $0 $0 $0 0.0% Total Other $0 $0 $0 $9,411 $29,750 $19,800 $11,400 -42.4% Total Revenues $0 $0 $260,078 $269,489 $286,700 $276,757 $268,357 -3.0% Expenditures Personnel Services 206-450-5300-41010 Full-time Salaries $0 $0 $0 $0 $0 $15,923 $35,200 -121.1% 206-450-5300-41030 Part-time Salaries $0 $0 $70,000 $7,595 $35,200 $0 $23,000 0.0% 206-450-5300-41210 PERA Contributions $0 $0 $0 $518 $2,552 $1,154 $2,552 -121.1% 206-450-5300-41220 FICA Contributions $0 $0 $0 $471 $2,182 $987 $3,608 -265.5% 206-450-5300-41230 Medicare Contributions $0 $0 $0 $110 $510 $231 $844 -265.5% 206-450-5300-41300 Health/Dental Insurance $0 $0 $0 $0 $13,605 $2,268 $13,605 -500.0% 206-450-5300-41510 Workers Compensation $0 $0 $0 $0 $1,000 $0 $1,000 0.0% Total Personnel Services $0 $0 $70,000 $8,694 $55,050 $20,563 $79,809 -288.1% Supplies 206-450-5300-42000 Office Supplies $0 $467 $2,500 $3,071 $4,000 $2,488 $5,000 -100.9% 206-450-5300-42500 Library Collection Maintenance $0 $0 $12,000 $1,618 $2,000 $3,283 $20,000 -509.3% 206-450-5300-42230 Building Repair Supplies $0 $0 $60 $2,802 $0 $20 $8,000 -39308.9% Total Supplies $0 $467 $14,560 $7,491 $6,000 $5,791 $33,000 -469.8% Other Services and Charges 206-450-5300-43030 Engineering Services $0 $1,383 $0 $2,184 $0 $0 $0 0.0% 206-450-5300-43040 Legal Services $0 $0 $0 $1,320 $600 $931 $500 46.3% 206-450-5300-43150 Contract Services $0 $0 $5,000 $21,100 $4,400 $4,550 $4,000 12.1% 206-450-5300-43180 Information Technology $0 $0 $10,320 $0 $3,100 $3,100 $13,000 -319.4% 206-450-5300-43210 Telephone $0 $0 $960 $1,005 $2,100 $1,461 $1,400 4.1% 206-450-5300-43250 Internet $0 $0 $600 $216 $900 $441 $600 -35.9% 206-450-5300-43310 Mileage $0 $0 $0 $0 $0 $0 $0 0.0% 206-450-5300-43630 Insurance $0 $0 $0 $0 $0 $2,568 $2,500 2.6% 206-450-5300-43810 Utilities $0 $0 $3,000 $2,589 $4,800 $6,986 $7,000 -0.2% 206-450-5300-43830 Gas Utility $0 $0 $0 $0 $0 $0 $0 0.0% 206-450-5300-43840 Refuse $0 $0 $0 $120 $1,200 $732 $800 -9.2% 206-450-5300-44010 Repairs/Maint Bldg $0 $0 $2,400 $2,791 $12,000 $7,275 $52,748 -625.0% 206-450-5300-44040 Repairs/Maint Eqpt $0 $0 $1,800 $0 $16,800 $684 $2,500 -265.5% 206-450-5300-44120 Rentals - Buildings $0 $0 $30,000 $0 $0 $0 $0 0.0% 206-450-5300-44300 Miscellaneous $0 $169 $41,500 $34,819 $13,650 $119 $30,000 -25203.6% 206-450-5300-44310 Library Card Reimbursements $0 $5,458 $40,900 $0 $39,000 $29,892 $39,000 -30.5% 206-450-5300-44330 Dues & Subscriptions $0 $0 $0 $45 $500 $947 $0 100.0% 206-450-5300-44370 Conferences & Training $0 $0 $0 $1,174 $0 $274 $0 100.0% 206-450-5300-44310 Internal Charges $0 $0 $0 $2,829 $1,200 $1,840 $0 100.0% 206-450-5300-46110 Interest $0 $0 $0 $2,874 $0 $1,500 $0 100.0% Total Other Services and Charges $0 $7,010 $136,480 $73,067 $100,250 $63,299 $154,048 -143.4% Capital Outlay 206-450-5300-45200 Buildings/Property Tax $0 $0 $0 $251,137 $125,400 $146,632 $1,500 99.0% 206-450-5300-45800 Other Equipment $0 $0 $40,000 $1,130 $0 $247 $0 100.0% Total Capital Outlay $0 $0 $40,000 $252,267 $125,400 $146,879 $1,500 99.0% Total Expenditures $0 $7,477 $261,040 $341,519 $286,700 $236,532 $268,357 -13.5% Library $0 ($7,477)($962)($72,030)$0 $40,225 ($0)100.0% Fund Balance Fund Balance, Beginning of Year $0 $0 $0 ($7,477)($962)($79,506)($39,281)50.6% Net Change in Fund Balance $0 ($7,477)($962)($72,030)$0 $40,225 ($0)-100.0% Fund Balance, Ending of Year $0 ($7,477)($962)($79,506)($962)($39,281)($39,281)0.0% Library LIBRARY FUND (206) BUDGETARY OBJECTIVE This fund was created to account for activities of the local Lake Elmo library ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Current Ad Valorem Taxes (31010) An annual special property tax levy is levied by the City each year for li- brary activities at the direction of the City council. EXPENDITURES & OTHER FINANCING USES • A variety of line items listing the projected expendi- tures needed in preparation for and operations of the library. • For the first two years, the primary focus was repaying the building loan debt to the City. At the end of 2013 it is anticipated this loan will be paid in full. 30 City of Lake Elmo 2014 Budget DEBT SERVICE FUNDS SUMMARY4 Debt service funds (a type of governmental fund) are used to account for the accumulation of resources for the pay- ment of general long-term debt principal, interest, and related costs. The city has eight debt service funds with outstanding long-term debt: • 2004 G.O. Capital Improvement Plan Bonds • 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 Annual appropriated budgets are not adopted for debt service funds because effective budgetary control is alter- natively achieved through general obligation bond inden- ture 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 cur- rent 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 ac- counting, under which revenues are not recognized until they are measurable and available, and expenditures are recognized in the period in which governments in gener- al normally liquidate the related liability rather than when that liability is first incurred (if earlier). The basis of bud- geting 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 through 2015, averaging approximately $51,000. This fund is responsible for the retirement of the general obligation equipment certificates. ACCOUNT HIGHLIGHTS 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 2014 $50,000 $4,080 2015 $52,000 $2,080 TOTAL:$102,000 $6,160 31City of Lake Elmo 2014 Budget 2009A G.O. REFUNDING BONDS (2001) (315) BUDGETARY OBJECTIVE 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 Munic- ipal 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. ACCOUNT HIGHLIGHTS 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. DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $70,000 $6,650 2015 $70,000 $4,550 2016 $70,000 $2,100 TOTAL:$210,000 $13,300 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 obliga- tion bonds. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Current Ad Valorem Taxes (31010) To repay the bonds, an an- nual 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 pay- ments beginning in 2011. DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $60,000 $10,563 2015 $60,000 $9,363 2016 $60,000 $8,163 2017-2020 $250,000 $15,187 TOTAL:$430,000 $43,276 32 City of Lake Elmo 2014 Budget 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 obliga- tion bonds. ACCOUNT HIGHLIGHTS 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. • Special Assessments (36100) These assessments were levied against benefited property owners in 2011 for pay- ments beginning in 2012. DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $70,000 $11,563 2015 $70,000 $10,653 2016 $70,000 $9,550 2017-2021 $365,000 $24,321 TOTAL:$575,000 $56,087 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 will be defeased in 2013 through the escrow account. This fund is responsible for the retirement of the general obliga- tion bonds. ACCOUNT HIGHLIGHTS 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 2014 through 2024 (averaging approximately $200,000). DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $135,000 $45,933 2015 $150,000 $44,208 2016 $150,000 $42,108 2017-2021 $805,000 $162,736 2022-2025 $730,000 $46,345 TOTAL:$1,970,000 $341,330 33City of Lake Elmo 2014 Budget 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 obliga- tion bonds. ACCOUNT HIGHLIGHTS 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. DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $80,000 $15,500 2015 $80,000 $14,720 2016 $80,000 $13,720 2017-2021 $435,000 $42,899 2022 $95,000 $1,449 TOTAL:$770,000 $88,288 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 sav- ings. 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. 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 2014 $150,000 $170,650 2015 $150,000 $165,250 2016 $195,000 $86,044 2017 $190,000 $82,144 2018 $215,000 $78,344 2019 $3,435,000 $539,290 TOTAL:$4,335,000 $1,121,722 34 City of Lake Elmo 2014 Budget 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. ACCOUNT HIGHLIGHTS 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. DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $75,000 $10,658 2015 $80,000 $10,270 2016 $85,000 $9,751 2017-2023 $625,000 $38,470 TOTAL:$865,000 $79,993 35City of Lake Elmo 2014 Budget 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 recov- ered at the time the development occurs. 100% of the 5th Street 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. ACCOUNT HIGHLIGHTS 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 2013 for payments beginning in 2014. WATER BUDGETARY OBJECTIVE This debt was incurred to fund the remaining portion of the Keats Watermain Project and Well #4 and Pumphouse #4. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Current Ad Valorem Taxes (31010) To repay the bonds, an an- nual property tax levy will be levied by the City through 2021, averaging approximately $50,000. • Special Assessments (36100) These assessments are project- ed to be levied against benefited property owners in 2013 for payments beginning in 2014. SEWER BUDGETARY OBJECTIVE This debt was incurred to fund the Lake Elmo Avenue Sewer. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Current Ad Valorem Taxes (31010) To repay the bonds, an an- nual property tax levy will be levied by the City through 2021, averaging approximately $50,000. • Special Assessments (36100) These assessments are project- ed to be levied against benefited property owners in 2013 for payments beginning in 2014. DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $45,000 $32,427 2015 $105,000 $40,205 2016 $105,000 $38,105 2017 $105,000 $36,005 2018-2028 $1,240,000 $229,862 TOTAL:$1,600,000 $376,602 DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $40,000 $22,880 2015 $50,000 $28,203 2016 $50,000 $27,203 2017 $50,000 $26,203 2018-2028 $815,000 $241,301 TOTAL:$1,005,000 $345,790 DEBT PAYMENT SCHEDULE: YEAR PRINCIPAL INTEREST 2014 $135,000 $68,446 2015 $150,000 $84,063 2016 $155,000 $81,063 2017 $155,000 $77,963 2018-2028 $2,415,000 $719,271 TOTAL:$3,010,000 $1,030,806 36 City of Lake Elmo 2014 Budget CAPITAL PROJECTS FUNDS SUMMARY5 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 (oth- er 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. 2009-2013 Street Improvements 8. South of 10th Street Improvements 9. 5th Street Parkway Annual appropriated budgets are not adopted for capital projects funds because effective budgetary control is al- ternatively accomplished through the use of project con- trols. 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 over- all 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 un- til 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 prin- ciples generally accepted in the United States of America. PARK DEDICATION (404) BUDGETARY OBJECTIVE The purpose of this fund is to provide funds for park and trail improvements and related equipment costs from funds dedicated for park purposes. According to Minne- sota Statutes, the city’s park dedication fees received as payments in lieu of park land dedication from developers must be put in a dedicated account to use for park-related purposes. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Park Grants (33435) Miscellaneous park grants, in- cluding MN DNR, Greenway, and Washington Conser- vation. • Dedication Fees (36240) Park dedication fees re- ceived as payments in lieu of park land dedication from developers. EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted park engineering services. • Buildings & Structures (45200) Capital outlay for park buildings and structures: Financed by Fund Balance/Park Dedication Fees/Grants: • Under review by the Parks Commission • Improvements Other Than Buildings (45300) Capital outlay for park improvements other than buildings: • New parks in new developments .................$100,000 • (funded by developments) • Addition of restrooms to existing parks .........$80,000 • 11 foot mower .................................................$50,000 • Updates to existing playground equipment ..$25,000 • 3/4 ton pickup ................................................$30,000 For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. 37City of Lake Elmo 2014 Budget INFRASTRUCTURE RESERVE (409) BUDGETARY OBJECTIVE The purpose of this fund is to account for future road and street infrastructure projects. The city’s Municipal State Aid (MSA) Construction and Section 33 Utilities capital projects funds were closed to the Infrastructure Reserve fund via transfers out in 2007. MSA construction reve- nues are now recorded in the Infrastructure Reserve fund or other project-specific capital fund, while MSA mainte- nance revenues are recorded in the General Fund. All spe- cial assessments receivable (deferred and Green Acres) previously recorded in the MSA Construction fund were also shifted to the Infrastructure Reserve fund in 2007. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Special Assessments (36100) These assessments were levied against benefited property owners in var- ious years for various periods through 2014. • Bond Proceeds (39310) Borrowing to finance capital road and street improvements. • Transfers In (39200) Transfers from the General Fund for infrastructure projects, including sealcoating. EXPENDITURES & OTHER FINANCING USES • Comprehensive Planning (43020) Expenditures for contracted comprehensive transportation planning services. • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: Financed by Fund Balance/Transfers In: • Sealcoating .........................................$160,000 For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. VEHICLE REPLACEMENT (FORMERLY CAPITAL ACQUISITIONS) (410) BUDGETARY OBJECTIVE The purpose of this fund is to account for the acquisition of vehicles and related equipment. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Bond Proceeds (39310) Borrowing to finance vehicle acquisitions. EXPENDITURES & OTHER FINANCING USES • Vehicles (45500) Capital outlay for vehicles: • Public Works Single Axel Plow ....................$210,000 (shifted from 2013 to take advantage of sales tax savings) • Fire: replace engine 1 ................................$750,000 For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. CITY FACILITIES (411) BUDGETARY OBJECTIVE The purpose of this fund is to account for the acquisition of major buildings and building improvements. In 2004, the City issued $4,090,000 of G.O. Capital Im- provement Plan (CIP) Bonds to finance the constructing and equipping of City facilities. To date, a public works facility and a City Hall annex have been acquired. A total of $1,000,000 of unspent bond proceeds were transferred from the City Facilities capital projects fund to the 2004 G.O. Capital Improvement Plan Bonds debt service fund in 2009, thereby increasing the debt ser- vice fund balance and reducing the pay 2010 and future scheduled annual property tax levies to $220,000. Subsequently, in 2010, $200,000 of unspent bond pro- ceeds were transferred from the City Facilities capital 38 City of Lake Elmo 2014 Budget projects fund to the 2004 G.O. Capital Improvement Plan Bonds debt service fund. At that same point in time, inter- est rates had dropped significantly so the bond was once again refianced with a newer crossover bond. This re- duced the annual levy amount by an average of $25,000 per year. ACCOUNT HIGHLIGHTS EXPENDITURES & OTHER FINANCING USES • Buildings & Structures (45200) Capital outlay for build- ings and structures: Financed by Fund Balance: Purchase of the building at 3537 Lake Elmo Avenue to house the Lake Elmo Library for $240k. 100% of the funds loaned to the library fund will be repaid to the gen- eral fund by the end of 2013. • Transfers Out (47200) Transfers to the 2004 G.O. Cap- ital Improvement Plan Bonds debt service fund. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. VILLAGE (413) BUDGETARY OBJECTIVE The purpose of this fund is to plan and prepare for the development and potential redevelopment of the Village. All obligations and expenditures for the Village project had been tracked and put into the Village capital projects fund. The project was being funded with a loan from General Fund reserves and a repayment schedule for the loan has been established. Annual loan repayment of $200,000 per year were made in 2012 & 2013. The remaining bal- ance will be repaid or capitalized in 2013 with the Lake Elmo Avenue Sewer Project in the Village. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Miscellaneous State Grants (33426) Matching grant appropriated by the State of Minnesota. • Reimbursements (36205) Developer reimbursements to cover costs of developing the Village. • Bond Proceeds (39310) Potential financing of the Vil- lage project. EXPENDITURES & OTHER FINANCING USES • Improvements Other Than Buildings (45300) Village infrastructure costs, including I-94 to 30th Street force- main. • Loan Principal (46015) The initial principal payment was scheduled for 12/31/10, but sources to repay the loan were previously unavailable. A repayment of $200k was made in 2012 with excess operating capi- tal and it has been budgeted that the remaining $400k will be paid in 2013 and 2014 at $200k each with the remaining amount to be capitalized with the comple- tion of the sewer and water projects. • Loan Interest (46115) 4% interest on internal loan from the General Fund. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. MANNING AVENUE/HIGHWAY 36 (414) BUDGETARY OBJECTIVE The purpose of this fund is to account for designated funds from a developer for reconstructing portions of Manning Avenue by Sanctuary. In 2007, the Manning Av- enue/Highway 36 capital projects fund was created with a $14,290 prior period adjustment to account for and seg- regate prior year initial expenditures incurred and original- ly recorded in the Infrastructure Reserve capital projects fund in 2006. A $75,000 escrow received from the Sanctuary develop- er in 2006 is recorded in the Manning Avenue/Highway 36 fund. Per the Sanctuary development agreement, this $75,000 and any interest accrued thereon may only be used by the city to reimburse itself for up to 50% of the costs incurred by the city for the Manning Avenue im- provement. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. 39City of Lake Elmo 2014 Budget 2009 STREET IMPROVEMENTS (415) BUDGETARY OBJECTIVE The purpose of this fund is to account for the 2009 street infrastructure projects. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Bond Proceeds (39310) Borrowing to finance capi- tal road and street improvements (part of $575,000 2009B G.O. Improvement Bonds). EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: Financed by Bond Proceeds (bonds to be repaid 70% through the property tax levy and 30% through special as- sessments): (PROJECTS LISTED REPRESENT ORIGINALLY BUDGETED STREETS) 21st Street N Manning Ave to cul-de-sac 3RD Street Pl N Lake Elmo Ave (CSAH 17) to cul-de-sac Legion Ln N Legion Ln Ct to Legion Ave Legion Ln N Legion Ln Ct to Legion Ln Circle Legion Ln N Legion Ave N to Lisbon Ave N Legion Ln N Lisbon Ave to Legion Ln Circle Legion Ln N 30th Street N to south end Legion Ln Circle N Legion Ln to cul-de-sac Legion Ln Ct N Legion Ln to cul-de-sac Lisbon Ave N Legion Ln to cul-de-sac The 2009 Street Improvements capital projects fund was closed to the 2009B G.O. Improvement Bonds debt ser- vice fund in 2010. TABLYN PARK ENTRANCE (416) BUDGETARY OBJECTIVE The purpose of this fund is to account for the 2009 Tablyn Park entrance project. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Bond Proceeds (39310) Borrowing to finance capital road and street improvements (part of $575,000 2009B G.O. Improvement Bonds). EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements. The Tablyn Park Entrance capital projects fund was closed to the 2009B G.O. Improvement Bonds debt service fund in 2010. 2010 STREET IMPROVEMENTS (417) BUDGETARY OBJECTIVE The purpose of this fund is to account for the 2010 street infrastructure projects. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • MSA Construction (33419) State MSA construction aid originally projected for 70% of the Jamaca Avenue round- about project, but subsequently determined to be unnec- essary. • Bond Proceeds (39310) Borrowing to finance capital road and street improvements ($710,000 2010A G.O. Im- provement Bonds). EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: Financed by Bond Proceeds (bonds to be repaid 70% through the property tax levy and 30% through special as- sessments): (PROJECTS LISTED REPRESENT ORIGINALLY BUDGETED STREETS) 40 City of Lake Elmo 2014 Budget 57th Street N 55th Street to Julep way 53rd Street N East side of Foxfire Addn to Keats Ave N Isle Ave N Jamaca Ave N to south end Jane Road N Jamaca Ave N to west end Financed by Bond Proceeds (bonds to be repaid 100% through the property tax levy): (PROJECT LISTED REP- RESENTS ORIGINALLY BUDGETED IMPROVEMENT) Jamaca Ave Roundabout Jamaca Ct to TH 5 Financed by Bond Proceeds (bonds to be repaid 100% through the property tax levy): (PROJECT LISTED REP- RESENTS ADDITIONAL IMPROVEMENT ADDED IN 2010) •42nd Street Mill and Overlay For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. 2011 STREET IMPROVEMENTS (418) BUDGETARY OBJECTIVE The purpose of this fund is to account for the 2011 street infrastructure projects. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • MSA Construction (33419) State MSA construction aid. • Bond Proceeds (39310) Borrowing to finance capital road and street improvements. EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: Financed by Bond Proceeds (bonds to be repaid approxi- mately 70% through the property tax levy and 30% through special assessments). For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document as proposed by the City Engineer. 2012 STREET IMPROVEMENTS (419) BUDGETARY OBJECTIVE The purpose of this fund is to account for the 2012 street infrastructure projects. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • MSA Construction (33419) State MSA construction aid. • Bond Proceeds (39310) Borrowing to finance capital road and street improvements. EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: Financed by Bond Proceeds (bonds to be repaid approxi- mately 70% through the property tax levy and 30% through special assessments): (PROJECTS LISTED REPRESENT ORIGINALLY BUDGETED STREETS) 50th/Kimbro Avenue 47th St to CSAH 17 $300,000 Demontreville Tr Cir N Demontreville Tr Pl to cul-de-sac $150,000 Demontreville Tr Cir N Demontreville to Demontreville Tr Pl $84,000 Demontreville Tr Pl N Demontreville Tr Ct to cul-de-sac $96,000 Financed by Bond Proceeds (bonds to be repaid 70% through MSA construction aid and 30% through special assessments): (PROJECT LISTED REPRESENTS ORIGI- NALLY BUDGETED STREET) Keats Avenue 57th St to TH 36 $1,000,000 For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. SOUTH OF 10TH STREET IMPROVE- MENTS (420) BUDGETARY OBJECTIVE The purpose of this fund is to account for the South of 41City of Lake Elmo 2014 Budget 10th Street infrastructure projects. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • MSA Construction (33419) State MSA construction aid. • Bond Proceeds (39310) Borrowing to finance capital road and street improvements. EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. 2013 STREET IMPROVEMENTS (421) 5TH STREET The proposed 5th Street parkway will provide a new east- west roadway between 10th Street (CSAH 10) and the I-94 frontage road, Hudson Boulevard. Designated as a minor collector, this route would allow local traffic to ac- cess the north-south county roads. Rather than a straight shot between points, this roadway would likely curve be- tween new developments to provide access without invit- ing commuter or “cut-through” traffic. Limiting access to 10th Street (CSAH 10) to and from this road would also reduce “cut-through” traffic. The exact alignment will de- pend upon development. The City has developed a plan as part of the “Lake Elmo Theming and Branding Study” that depicts how the proposed parkway can integrate fencing, landscaping and signage that expands the ‘Brand’ identi- ty of Lake Elmo and helps new development integrate with the desired aesthetic. BUDGETARY OBJECTIVE To build a collector road to service the new developments and City traffic at the least cost to the City. ACCOUNT HIGHLIGHTS REVENUES & OTHER FINANCING SOURCES • Developer contributions • Bond proceeds - borrowing to finance City portion of collector road. EXPENDITURES & OTHER FINANCING USES • Engineering Services (43030) Expenditures for con- tracted road and street engineering services. • Improvements Other Than Buildings (45300) Capital outlay for road and street improvements: For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. 42 Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesGENERAL FUND2013 vs 2014 due to sales tax savings and delay for build out. $7k saving in STSingle Axel Plow/Wing /SpreaderPWNeed2013210,000210,000 New addition for staff add; will no longer need use of contractor; cost closer to $200kDiesel exhaust filter system for both stationsFIRENeed201369,91269,912 PurchasedWarning sirens x 2; replace Cimarron and add in N center gapEMER COMMNeed201350,00050,000 Dry Hydrants-potentially 12 @ approx $2,500 eachFIRENeed201330,00030,000 Replacement of Engine 1 (Aerial)FIRENeed2014750,000750,000 Replacement of SCBA'sFIRENeed2014/2015103,000104,000207,000 Durapatch Pot Hole Patcher PWNeed201428,00028,000 Moved forward to 2013Dump Truck/Plow/Wing/SanderPWNeed2015175,000175,000 Replaces 1998 Plow truck; will be in 17th year of useful life…New GL/UB software to be on one platform, supported and efficientFINANCENeed201560,00060,000 Current software 10 years old and some components no longer supportedReplacement of CV1FIRENeed201560,00060,000 City Hall remodelADMINNeed2016300,000300,000 Out of space at existing City Hall1 Ton Truck/Plow/Sander InsertPWNeed201650,00050,000 Replaces 2003 1 Ton with Plow; will be at year 13 of useful lifeReplacement of CV2FIREWant201765,00065,000 Replacement of Tender 1FIRENeed2018450,000450,000 Mini ExcavatorPWNeed201850,00050,000 Currently rent for $4k per yearStation #1 parking lot, apron (need Engineers recommendation)FIREWant201825,00025,000 Replacement of U2FIREWant201975,00075,000 Total387,912 853,000 399,000 350,000 65,000 525,000 75,000 - - 2,654,912 Funding Source for General Fund Projects (G.O. Bonds)Property tax levy increase36,000 78,017 432,716 682,398 948,551 1,198,908 1,449,266 1,449,266 6,275,122 Fund balance (vehicle fund-$319k as of 12/31/12)279,912 - 60,000 - 339,912 Fund balance (facilities fund)(82,716) Fund balance (general fund)108,000 17,000 168,100 - (423,551) (1,123,908) (1,449,266) (1,449,266) (4,152,891) Excess funds available; could pay off bonds startomg in 2017Bond750,000 - - (617,398) - - - - 132,602 Special assessments / Litigation Judgment- Municipal state aid- Grants50,000 50,000 100,000 SCBA'sIntergovernmental- - Total387,912 853,000 356,117 350,000 65,000 525,000 75,000 - - 2,694,745 Annual Debt Service on General Fund Projects2013 Bonds2014 Bonds71,250 69,563 - - - - - 140,813 Assumes payoff fire truck bond early2015 Bonds- 2016 Bonds- 2017 Bonds- 2018 Bonds- - - Total - - 71,250 69,563 - - - - - 140,813 City of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)Lake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 43Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesCity of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)PARKS FUNDPark ImprovementsPARKSNeed2014220,00011 Foot MowerPARKSNeed201450,00050,000 Replaces 2002 ToroUpdates to existing playground equipmentPARKSNeed201480,000Ski Trail Groomer/Utility Field MaintPARKSWant201640,00040,000 Discussed multiple times by Parks Commission3/4 Ton Pick upPARKSNeed201430,00030,000 Replaces 1998 3/4 Ton GMS; will be at year 18 of useful lifeTotal- 380,000 - 40,000 - - - - - 120,000 Funding Source for Parks Fund ProjectsDeveloper paid100,000Parks Fund (cash)280,00040,000320,000 Total- 380,000 - 40,000 - - - - - 320,000 WATER UTILITY FUNDWater Utility ProjectsWater supply well No. 4 and pumphouse /connectionENGINEERING2013/2014445,000 765,000 1,210,000 Keats Ave 16" trunk watermain extensionENGINEERING2014765,000 765,000 Phase I: Western I94 Corridor (Inwood to Keats)Segment 1: Water booster pumpENGINEERING2014700,000 700,000 Segment 2: Inwood Ave 16" trunk watermain extensionENGINEERING20141,585,250 1,585,250 Segment 3: 10th St to EP Bus Park 16" trunk watermain extENGINEERING2014765,000 765,000 Azure Prop 12" trunk watermain extensionsENGINEERING201476,500 76,500 Alt Segment 5: 12" trunk watermain to Sedona DevelopmentENGINEERING2014+480,25042,50063,750 42,500 63,750 692,750 Alt Segment 7: Elevated storage tank (High Pressure Zone)ENGINEERING20151,360,000 1,360,000 Phase II: Eastern I94 Corridor (Lake Elmo Ave. to Manning)Segment 4: Lake Elmo Ave 12" trunk watermain extensionENGINEERING20142,550,000 2,550,000 Phase IIIb: Village Area (East to Village Parkway)Replace/upgrade watermains as streets disturbedENGINEERING2015794,750 794,750 Village Parkway/39th StreetENGINEERING2015/2016467,500 323,000 790,500 Old Village TH5 Trunk Watermain ReplacementENGINEERING2017467,500 467,500 Old Village Lateral Watermain Replacement (South of RR)ENGINEERING20181,275,0001,275,000 Old Village Lateral Watermain Replacement (RR-TH5)ENGINEERING2018680,000680,000 Ideal Avenue Trunk Watermain - Oakdale InterconnectENGINEERING2015450,500 450,500 Neighborhood Watermain Extensions/Replacements (2015 Street Impr)ENGINEERING2015816,000 816,000 Hidden Meadows Trunk WatermainENGINEERING2015280,500 280,500 Torre Pines + Cardinal Ridge + Cardinal View Watermain ExtensionsENGINEERING20191,020,000 1,020,000 Well No. 5 (@ 9,700 Total Water Population)ENGINEERING2018816,000 816,000 Replace remaining Sensus meters with Neptune metersFINANCE2013/201437,000 37,000 74,000 Total Water482,000 7,724,000 4,211,750 386,750 510,000 2,834,750 1,020,000 - - 17,169,250 Funding Source for Water Utility ProjectsAvg water bill assumed at $125 per quarter; $500 per yrProperty Tax Levy- Operating revenue increase (base + meter revenue only)6,000 17,250 25,500 25,500 25,500 25,500 25,500 25,500 25,500 201,750 Operating revenue increase (estimated water usage)20,000 107,500 207,500 307,500 410,000 510,000 580,000 580,000 580,000 3,302,500 Fund balance (cash)(1,831,700) 3,788,750 (4,995,750) (1,850,250) (613,000) 1,656,750 (228,000) (1,090,500) (953,000) (6,116,700) 2014/2015 50% Developer WAC available to cover other funding needsWAC and Connection Fees156,000 1,344,500 1,657,000 1,657,000 687,500 642,500 642,500 485,000 347,500 7,619,500 Per Connection stats worksheet (updated to 1,879)Bond (2013 = grant match monies)1,000,000 1,000,000 - - - - 2,000,000 Other Revenue6,000,000 6,000,000 Bonding may be requiredMunicipal state aid- Lake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 44 Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesCity of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)Grants500,000 500,000 1,000,000 Intergovernmental- Developer Contribution (100% Assessed; City Bond)631,700 966,000 1,317,500 247,000 3,162,200 Total Water482,000 7,724,000 4,211,750 386,750 510,000 2,834,750 1,020,000 - - 17,169,250 Short/(over)- - - - - - - - - - Annual Debt Service for Water Utility Projects2013 Bonds (4.5%, 20 yrs)62,880 78,203 77,203 76,203 79,103 78,003 76,903 75,693 604,187 2014 Bonds (4.5%, 20 yrs)- 62,880 78,203 77,203 76,203 79,103 78,003 76,903 528,498 2015 Bonds (4.5%, 20 yrs)2016 Bonds (4.5%, 20 yrs)- 2017 Bonds (4.5%, 20 yrs)- 2018 Bonds (4.5%, 20 yrs)- 2019 Bonds (4.5%, 20 yrs)2020 Bonds (4.5%, 20 yrs)- - - 2021 Bonds (4.5%, 20 yrs)- Total - 62,880 141,083 155,406 153,406 155,306 157,106 154,906 152,596 1,132,685 Lake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 45Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesCity of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)SANITARY SEWER UTILITY FUNDSanitary Sewer ProjectsSegment 4: Section 34 Trunk Sewer/lift station - Savona DevelopmentENGINEERING20131,600,000 - - - - - - - 1,600,000 Segment 6: Hudson Blvd lift station replacement, FM to WONEENGINEERING2017- - - 276,000 - - - - 276,000 Phase II: Eastern I94 Corridor (Lake Elmo Ave. to Manning)- - - - - - - - - - 18/27" trunk sewer extension from MCES connectionENGINEERING20131,100,000 1,100,000 Future lift station west of Lake Elmo Ave.ENGINEERING2018276,000 276,000 Olson Lake Trail Trunk Sanitary Sewer ExtensionENGINEERING2013/201598,000 165,140 263,140 Phase IIIb: Village Area (East to Village Parkway)- Village lift station and forcemainENGINEERING20133,300,000 3,300,000 Segment 1: Old Village Trunk Sewer (30th-Lake Elmo Ave-Laverne to TH5)ENGINEERING2015920,000 920,000 Segment 2: Village Parkway (30th-RR-TH5) + 39th StreetENGINEERING2015/2016552,000 184,000 736,000 Old Village Lateral Sewer Extensions (South of RR)ENGINEERING20181,380,000 1,380,000 Old Village Lateral Sewer Extensions (RR - TH5)ENGINEERING2018460,000 460,000 Additional Trunk South of 10th StreetENGINEERING2018828,000 828,000 Total Sewer6,098,000 - 1,637,140 184,000 276,000 2,944,000 - - - 11,139,140 Connections11,139,140 Funding Source for Sanitary Sewer ProjectsProperty tax levy- - - - - - - - - - Prior year payments on project400,000 Fund balance (cash)33,500 (1,142,280) (259,390) (1,338,655) (229,875) (268,580) (462,205) (500,110) (496,535) (4,664,130) Cash available to pay down bondSewer Usage Revenue12,000 76,500 148,500 220,500 294,000 366,000 408,000 450,000 450,000 2,425,500 SAC and Connection Fees (Net of Met-Council fees)140,000 1,065,780 1,113,030 1,152,155 211,875 171,580 54,205 50,110 46,535 4,005,270 Majority of bond can be paid repaid in 2014/2015Bond (Includes MN Deed match of $1MM)3,000,000 - - - 3,000,000 when receive Developer 50% SAC feesSpecial assessments92,500 - 185,000 277,500 Municipal state aid- - - - - - - - - - Grants1,000,000 - - - - - - - - 1,000,000 Intergovernmental/Water Fund- - - - - - - - - - Developer Contribution (City Bond/Assess?)1,420,000 450,000 150,000 - 2,675,000 - - - 4,695,000 Total Sewer6,098,000 - 1,637,140 184,000 276,000 2,944,000 - - - 11,139,140 - - - - - - Annual Debt Service on Sanitary Sewer Projects2013 Bonds203,446 234,063 236,063 232,963 234,863 - - - 1,141,396 Assumes bonds paid off early to reduce levy in 20182014 Bonds- (Possibly sooner….)2015 Bonds2016 Bonds2017 Bonds2018 Bonds- Total - 203,446 234,063 236,063 232,963 234,863 - - - 1,141,396 Notes:Lake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 46Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesCity of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)STREET FUNDStreet ProjectsLocal Residential Street Improvements- - - - - - - - Keats MSA StreetsENGINEERING20131,036,000 1,036,000 Southern Tri-Lakes Area; Kenridge Addition; & Kelvin AvenueENGINEERING2015- - 1,946,400- - - - - 1,946,400 All street projects shifted forward 1 year fromPackard Park; and 20th Street AreaENGINEERING2014815,200 815,200 previous presentationStonegate-Phase 1; and Kirkwood AvenueENGINEERING2016609,600 609,600 Tri-Lakes Area [Springborne Green Acres, Fox Fire Estates, & Judy Jary Manor]ENGINEERING20171,546,400 1,546,400 Old Village Area Streets [North of U.P. Railroad]ENGINEERING20181,200,000 1,200,000 Old Village Area Streets [South of U.P. Railroad]ENGINEERING20181,680,000 1,680,000 Collector Road Improvements; Non MSA Routes- Manning Trail NENGINEERING2014175,200 175,200 Manning Avenue; TH 36 - Linden Avenue (FUTURE)ENGINEERINGFUTURE- Municipal State Aid Street Improvements- North of 20th StreetENGINEERING2014276,800 20th Street N & Manning Trail [Lake Elmo Ave. to Manning Ave.]ENGINEERING201589,250 89,250 15th Street North [Inwood Ave. to West City Limits]ENGINEERING2018560,000 560,000 TRANSPORTATION IMPROVEMENTS5th Street Parkway Improvement (Developer-100%; City Bond/Assess?)5,200,000 CSAH 15 Manning Avenue (I94 to TH5) FUTUREENGINEERING2015720,000 720,000 Lake Elmo Avenue.Downtown District Improvements (TIF)ENGINEERING20151,120,000 1,120,000 Need to shift $3M to 2016…Lake Elmo Avenue (30th Street to RR-No Lighting)-County??ENGINEERING20151,340,000 1,340,000 Highway 5 Corridor Management & Safety ImprovementsENGINEERING201412,000 12,000 Village Parkway Build-out (Developer-100%; City Bond/Assess?)ENGINEERING2015/20162,320,000 1,600,000 3,920,000 Total Streets1,036,000 6,568,450 7,446,400 2,209,600 1,546,400 3,440,000 - - - 22,246,850 Funding Source for Street ProjectsProperty tax levy- - - - - - - - - - Fund balance (cash)36,000 193,650 375,816 25,680 (36,480) 276,080 136,000 - - 1,006,746 WAC and Connection Fees- Bond1,100,000 3,000,000 1,400,000 1,000,000 - 6,500,000 TIFSpecial assessments (assessed year AFTER work performed/completed)- 74,800 270,047 583,920 182,880 463,920 864,000 2,439,567 Municipal state aid (Assumes borrow AHEAD from MSA funds)- - 1,425,000 - - 700,000 - - - 2,125,000 Grants (HSIP Grant?)1,000,000 - - - - - - - - 1,000,000 Intergovernmental/Water Fund- - - 1,000,000 (1,000,000) - - - Developer Contribution (100% assessments; City Bond/Assess?)05,200,0002,320,0001,600,00000- - - 9,120,000 Would need to bond for these…Total1,036,000 6,568,450 7,390,863 2,209,600 1,546,400 3,440,000 - - - 22,191,313 - 55,538 - - - - (55,538) Annual Debt Service on Street Projects2013 Bonds2014 Bonds104,500 102,025 99,550 97,075 94,600 92,125 89,650 679,525 2015 Bonds285,000 278,250 271,500 264,750 258,000 251,250 1,608,750 2016 Bonds2017 Bonds133,000 129,850 126,700 123,550 513,100 2018 Bonds95,000 92,750 90,500 278,250 2019 Bonds- Total - - 104,500 387,025 377,800 501,575 584,200 569,575 554,950 3,079,625 Lake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 47Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesCity of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)SURFACE WATER IMPROVEMENTS FUNDSurface Water ProjectsVillage Storm Water / Regional Infiltration System - StudyENGINEERING201450,000 - - - - - - - 50,000 Village Flood / Drainage ImprovementsENGINEERING20151,400,000 1,400,000 Village Area Regional Storm Water System: Phase 1ENGINEERING2015800,000 800,000 Village Area Regional Storm Water System: Phase 2ENGINEERING2016700,000 700,000 Village Area Regional Storm Water System: Phase 3ENGINEERING2017500,000 500,000 Misc. Storm Water Improvements [Drainage, Ditching, Culverts & PondsENGINEERING2014-201825,000 25,000 25,000 25,000 25,000 125,000 Rain Garden ImprovementsENGINEERING2014-201760,000 42,000 36,000 56,000 - 194,000 Water Quality CIPENGINEERINGFUTURE- Total- 135,000 2,267,000 761,000 581,000 25,000 - - - 3,769,000 Funding Source for Surface Water ProjectsProperty tax levy- - - - - - - - - - Fund balance (cash)- 105,000 66,000 63,000 73,000 - - - - 307,000 WAC and Connection FeesBond2,000,000 500,000 300,000 2,800,000 Special assessments - Village Stormwater District Connection Fees- 180,000 180,000 180,000 180,000 720,000 Municipal state aid- - - - - - - - - - Grants (VBWD)30,000 21,000 18,000 28,000 - - - - 97,000 Intergovernmental/Water Fund- - - - - - - - Developer Contribution- - - - - - - Total- 135,000 2,267,000 761,000 581,000 180,000 - - - 3,924,000 Annual Debt Service on Surface Water Projects2013 Bonds- 2014 Bonds- 2015 Bonds190,000 185,500 181,000 176,500 172,000 167,500 1,072,500 2016 Bonds47,500 46,376 45,250 44,126 43,000 226,252 2017 Bonds28,500 27,825 27,150 26,475 109,950 2018 Bonds- - - - - - - Total - - - 190,000 233,000 255,876 249,575 243,276 236,975 1,408,702 Notes: Did not add in Stormwater Utility Fee RevenueNotes: Stormsewer Replacement CIP not included: need to obtain NEEDS list from Public WorksLake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 48 Funded by levy dollarsFunded by Utility Fund RevenueCity of Lake ElmoDeptNeed/Want201320142015201620172018201920202021TotalFinance NotesCity of Lake Elmo (11/26/13)Summary of Capital Improvement Plan (CIP)SUMMARY-ALL-NEWBONDSGeneral Fund- 750,000 - - (617,398) - - - - 132,602 XStreet Fund- 1,100,000 3,000,000 - 1,400,000 1,000,000 - - - 6,500,000 X New General Fund Bonds- 1,850,000 3,000,000 - 782,602 1,000,000 - - - 6,632,602 Water Utility Fund1,000,0001,000,00000000002,000,000 XSanitary Sewer Fund3,000,000 - - - - - - - - 3,000,000 XStorm Water Fund- - 2,000,000 500,000 300,000 - - - - 2,800,000 X New Enterprise Fund Bonds4,000,000 1,000,000 2,000,000 500,000 300,000 - - - - 7,800,000 100% Assessment Projects (City Bonds/Assesses)1,600,000 5,200,000 2,320,000 1,600,000 10,720,000 Total Annual Bonding5,600,0008,050,0007,320,0002,100,0001,082,6021,000,00000014,432,602Annual Loan Pmts (P+I)General Fund- 71,250 69,563 - - - - - 140,813 XStreet Fund- - 104,500 387,025 377,800 501,575 584,200 569,575 554,950 3,079,625 X Impact to Annual Levy- - 175,750 456,588 377,800 501,575 584,200 569,575 554,950 3,220,438 Water Utility Fund62,880 141,083 155,406 153,406 155,306 157,106 154,906 152,596 1,132,685 XSanitary Sewer Fund203,446 234,063 236,063 232,963 234,863 - - - 1,141,396 XStorm Water Fund190,000 233,000 255,876 249,575 243,276 236,975 1,408,702 X Impact to Enterprise Funds266,326 375,145 581,468 619,368 646,044 406,681 398,182 389,571 3,682,783 Total Annual Loan Pmts-NEW266,326550,8951,038,056997,1681,147,619990,881967,757944,5216,903,221Annual impact to residents property taxes$75 per $100k Levy increase0.00131.81342.44283.35376.18438.15427.18416.21OUTSTANDING DEBT SERVICEPrior YE Outstanding Debt16,740,00018,912,34525,106,03027,438,06327,562,72127,672,97027,658,64926,647,40725,624,293 Plus New Debt5,615,0008,050,0007,320,0002,100,0001,082,6021,000,000000 Less Crossover pmts from escrow(3,030,000)0(4,017,679)000000 Less Principal Pmts (extra pmts)(412,655)(856,315)(970,288)(975,342)(972,353)(1,014,321)(1,011,242)(1,023,114)(907,505) Less Principal Pmts (regular bond pmts)0(1,000,000)0(1,000,000)00000Excess Sewer funds availableCurrent YE Outstanding Debt18,912,34525,106,03027,438,06327,562,72127,672,97027,658,64926,647,40725,624,29324,716,788(Could decide to fund SW projects to save new bonding fees)Debt Limit (3% of Taxable Market Value) Estimated 2014 TMV (base)1,028,011,4001,089,692,0841,089,692,0841,089,692,0841,089,692,0841,089,692,0841,089,692,0841,089,692,0841,089,692,084 Projected new development TMV47,790,000140,265,000232,740,000321,315,000404,040,000486,765,000547,715,000589,715,0001,028,011,4001,137,482,0841,229,957,0841,322,432,0841,411,007,0841,493,732,0841,576,457,0841,637,407,0841,679,407,084 Debt Limit30,840,34234,124,46336,898,71339,672,96342,330,21344,811,96347,293,71349,122,21350,382,213Available Debt Capacity11,927,9979,018,4339,460,65012,110,24214,657,24317,153,31420,646,30623,497,92025,665,425Lake Elmo CIP 2013-2018-All_Blended_updated 11.26.13_Final Parks updates only_hv11/26/2013 49City of Lake Elmo 2014 Budget ENTERPRISE FUNDS SUMMARY6 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 govern- ing 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 enter- prise funds: 1. Water 2. Sewer 3. Surface Water Annual appropriated budgets are not adopted for enter- prise funds, but budgets are prepared by staff and re- viewed by the city council to assist in the city’s overall fi- nancial planning. BASIS OF ACCOUNTING & BUDGETING Enterprise funds are accounted for on the economic re- sources 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-cur- rent) associated with an enterprise fund’s activity are in- cluded on the balance sheet. Transactions that improve or diminish the economic position of the fund are report- ed 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 ba- sis 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 prin- ciples generally accepted in the United States of America. WATER (601) BUDGETARY OBJECTIVE The water fund is responsible for recording expenses relat- ed to the cost, maintenance, and replacement of the city water system while deriving revenue from user charges. Numerous projects will take place in the Water Fund in 2014 due to the growth initiative. Included are: • Completion of Well #4 • Keats Avenue water main extension • Phase I Water Project (Western I94 Corridor) • Phase II Water Project (Eastern I94 Corridor) ACCOUNT HIGHLIGHTS REVENUES AND TRANSFERS IN • Water Sales (37100) City property owners are charged on a quarterly basis for water usage. • Water Connections - Municipal (37150) Water hook-up charges. • Meter Sales (37170) Charges for water meters placed in city properties. • Tower Rent (37180) Rent charged for antenna place- ment on city water towers. • Transfer In (39210) Historically an annual transfer from the General fund was made to assist in offsetting the Water fund’s declining cash balance by $25,000. Recent collection and billing trends has made this no longer necessary. OTHER CASH INFLOW • Bond Issuance Debt issued for the financing of water capital equipment or water infrastructure. Due to the full accrual method of accounting in the water fund, this amount will ultimately be classified as a bond or loan payable liability, and no bond proceeds revenue will be recorded. 50 City of Lake Elmo 2014 Budget 2013 2013 Fund 2010 2011 2012 2012 2013 Projected 2014 to 2014 Number Description Actual Actual Budget Actual Budget Actual Budget Change Revenues (Operating and Nonoperating) 601 Water $888,569 $728,421 $560,500 $809,529 $628,000 $822,767 $3,785,752 360.1% 602 Sewer $51,539 $55,215 $45,100 $65,524 $77,600 $62,300 $3,015,600 4740.4% 603 Surface Water $376,608 $243,475 $167,500 $171,867 $202,500 $205,000 $232,500 13.4% Total Revenues (Operating and Nonoperating)$1,316,716 $1,027,111 $773,100 $1,046,920 $908,100 $1,090,067 $7,033,852 545.3% Expenses (Operating and Nonoperating) 601 Water $898,320 $845,476 $900,693 $941,696 $895,848 $884,316 $1,092,173 -23.1% 602 Sewer $61,512 $73,797 $103,003 $64,673 $103,003 $72,803 $163,854 -125.1% 603 Surface Water $151,383 $142,516 $163,732 $105,227 $163,432 $137,432 $148,485 -8.0% Total Expenses (Operating and Nonoperating)$1,111,214 $1,061,788 $1,167,428 $1,111,596 $1,162,283 $1,094,551 $1,404,512 -28.3% TOTAL ENTERPRISE FUNDS $205,502 ($34,677)($394,328)($64,676)($254,183)($4,484)$5,629,340 125647.4% Other Cash Inflow Bond/Loan Issuance 601 Water $23,928 $0 $2,290,000 $0 $2,290,000 $1,505,000 $1,500,000 -0.30% 602 Sewer $0 $0 $0 $0 $0 $3,010,000 $0 100.0% 603 Surface Water $0 $0 $0 $0 $0 $0 $0 0.0% Total Bond/Loan Issuance $23,928 $0 $2,290,000 $0 $2,290,000 $4,515,000 $1,500,000 -66.8% Other Cash Outflow Bond/Loan Principal 601 Water $35,000 $0 $40,000 $40,000 $40,000 $125,000 $190,000 52.0% 602 Sewer $0 $0 $0 $0 $0 $0 $135,000 0.0% 603 Surface Water $23,928 $0 $0 $0 $0 $0 $0 0.0% Total Bond Principal $58,928 $0 $40,000 $40,000 $40,000 $125,000 $325,000 160.0% Acquisition of Capital Assets 601 Water $33,320 $0 $2,290,000 $0 $2,290,000 $2,000,000 $5,200,000 160.0% 602 Sewer $0 $0 $0 $0 $0 $0 $3,000,000 0.0% 603 Surface Water $0 $0 $0 $0 $0 $0 $0 0.0% Total Acquisition of Capital Assets $33,320 $0 $2,290,000 $0 $2,290,000 $2,000,000 $8,200,000 310.0% Net Assets Net Assets, Beginning of Year $7,701,302 $7,906,804 $7,262,858 $7,872,126 $7,467,134 $7,807,450 $7,802,966 -0.1% Net Change in Net Assets $205,502 ($34,677)($394,328)($64,676)($254,183)($4,484)$5,560,894 124120.9% Net Assets, Ending of Year $7,906,804 $7,872,126 $6,868,530 $7,807,450 $7,212,951 $7,802,966 $13,363,860 71.3% Cash Cash, Beginning of Year $500,666 $538,368 $320,499 $839,303 $890,749 $1,085,994 $3,839,128 253.5% Change in Net Assets $205,502 ($34,677)($394,328)($64,676)($254,183)($4,484)$5,560,894 124120.9% Deduct: Contrib. of Capital Assets ($345,947)($9,637)$0 $0 $0 $0 $0 0.0% Add Back: Depreciation Expense $348,746 $348,118 $367,200 $346,983 $367,200 $360,200 $476,200 32.2% Add Back: Deferred Charges Amort.$7,418 $7,418 $7,418 $7,418 $7,418 $7,418 $7,418 0.0% Add Back: Bond Discount Amort.($711)$0 $0 $0 $0 $0 $0 0.0% Add: Other Cash Inflow $23,928 $0 $2,290,000 $0 $2,290,000 $4,515,000 $1,500,000 -66.8% Deduct: Other Cash Outflow ($92,248)($8,421)($2,330,000)($40,000)($2,330,000)($2,125,000)($8,525,000)301.2% Other Cash Flow Items ($108,986)($1,865)$0 ($3,034)$0 $0 $0 0.0% Cash, Ending of Year $538,368 $839,303 $260,789 $1,085,994 $971,184 $3,839,128 $2,858,640 -25.5% Enterprise Fund Summary 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Operating Revenues 601-000-0000-36100 Special Assessments $3,774 ($327)$2,500 $29,577 $10,000 $10,000 $10,000 0.0%601-000-0000-36205 Refunds and Reimbursements $0 $0 $0 $1,238 $0 $0 $0 0.0% 601-000-0000-37100 Water Sales $502,464 $525,089 $440,000 $619,895 $525,000 $575,000 $694,750 20.8% 601-000-0000-37120 Bulk Water $0 $6,667 $0 $273 $0 $1,750 $2,000 14.3%601-000-0000-37170 Meter Sales $11,121 $9,165 $5,000 $13,200 $5,000 $10,000 $15,000 50.0% Total Operating Revenues $517,359 $540,594 $447,500 $664,183 $540,000 $596,750 $721,750 60.7% Operating ExpensesPersonnel Services 601-494-9400-41010 Full-time Salaries $72,799 $73,619 $74,627 $63,821 $70,000 $70,000 $140,000 100.0% 601-494-9400-41210 PERA Contributions $5,074 $5,034 $5,410 $4,251 $5,000 $5,000 $10,000 100.0%601-494-9400-41220 FICA Contributions $4,377 $4,661 $4,627 $3,806 $4,000 $4,000 $8,000 100.0% 601-494-9400-41230 Medicare Contributions $1,024 $1,090 $1,082 $890 $800 $800 $1,600 100.0% 601-494-9400-41300 Health\Dental Insurance $14,576 $15,740 $14,320 $9,693 $7,200 $7,200 $14,400 100.0%601-494-9400-41420 Unemployment Benefits $0 $0 $0 $0 $0 $0 $0 0.0% 601-494-9400-41510 Workers Compensation $4,861 $3,507 $3,779 $1,652 $2,000 $2,000 $4,000 100.0% Total Personnel Services $102,711 $103,652 $103,845 $84,113 $89,000 $89,000 $178,000 100.0% Supplies 601-494-9400-42000 Office Supplies $410 $0 $500 $198 $500 $500 $500 0.0%601-494-9400-42030 Printed Forms $765 $248 $1,000 $985 $1,000 $1,000 $1,000 0.0% 601-494-9400-42160 Chemicals $3,893 $4,548 $5,000 $6,298 $5,000 $8,000 $5,000 37.5% 601-494-9400-42270 Utility System Maintenance $2,807 $1,522 $3,500 $5,158 $3,500 $3,500 $3,500 0.0%601-494-9400-42300 Water Meters & Supplies $84,861 $9,054 $25,000 $23,220 $25,000 $20,000 $30,000 -50.0% 601-494-9400-42400 Small Tools & Minor Equipment $488 $1,068 $1,500 $543 $1,500 $2,000 $2,500 -25.0% Total Supplies $93,225 $16,440 $36,500 $36,402 $36,500 $35,000 $42,500 -21.4% Other Services and Charges 601-494-9400-43030 Engineering Services $13,141 $33,089 $40,000 $99,610 $50,000 $75,000 $100,000 -33.3%601-494-9400-43040 Legal Services $0 $0 $0 $13,072 $0 $5,000 $5,000 0.0% 601-494-9400-43150 Contract Services $21,668 $27,651 $20,000 $55,321 $20,000 $20,000 $30,000 -50.0% 601-494-9400-43180 Software Support $2,298 $2,430 $3,200 $978 $3,200 $1,500 $3,200 -113.3%601-494-9400-43210 Telephone $506 $507 $600 $487 $600 $600 $600 0.0% 601-494-9400-43220 Postage $1,940 $2,500 $2,000 $1,501 $2,000 $2,000 $3,000 -50.0% 601-494-9400-43320 Depreciation Expense $324,818 $324,191 $340,000 $323,056 $340,000 $335,000 $375,000 -11.9%601-494-9400-43610 Insurance $9,710 $6,023 $9,000 $6,161 $9,000 $7,348 $9,000 -22.5% 601-494-9400-43810 Electric Utility $20,889 $23,117 $23,000 $26,023 $23,000 $25,000 $27,000 -8.0% 601-494-9400-43820 Water Utility $96,406 $96,085 $110,000 $85,290 $110,000 $90,000 $100,000 -11.1%601-494-9400-44030 Repairs\Maint Imp Not Bldgs $7,900 $9,505 $10,000 $4,828 $10,000 $11,000 $12,000 -9.1% 601-494-9400-44300 Miscellaneous $3,225 $2,076 $4,000 $6,940 $4,000 $4,000 $4,000 0.0% 601-494-9400-44370 Conferences & Training $884 $271 $1,000 $793 $1,000 $1,000 $1,500 -50.0%601-494-9400-46200 Fiscal Agent Fees $425 $425 $425 $0 $425 $425 $425 0.0% Total Other Services and Charges $503,810 $527,871 $563,225 $624,059 $573,225 $577,873 $670,725 -16.1% Total Operating Expenses $699,746 $647,964 $703,570 $744,573 $698,725 $701,873 $891,225 -27.0%Operating Income (Loss)($182,387)($107,370)($256,070)($80,391)($158,725)($105,123)($169,475)-61.2% Nonoperating Revenues 601-000-0000-36210 Interest on Investments $10,583 $9,906 $4,000 $6,387 $4,000 $6,000 $7,000 16.7%601-000-0000-36231 Contrib. of Capital Assets $4,401 $5,267 $0 $0 $0 $0 $0 0.0% 601-000-0000-36232 Developer Contributions $183,000 $0 $0 $0 $0 $75,017 $73,002 -2.7% 601-000-0000-37150 Water Connections - Municipal $78,000 $74,100 $48,000 $92,959 $48,000 $100,000 $2,939,000 2839.0%601-000-0000-37180 Tower Rent $45,226 $48,555 $36,000 $46,001 $36,000 $45,000 $45,000 0.0% 601-000-0000-39210 Transfer In $50,000 $50,000 $25,000 $0 $0 $0 $0 0.0% Total Nonoperating Revenues $371,210 $187,827 $113,000 $145,347 $88,000 $226,017 $3,064,002 1255.7%Nonoperating Expenses 601-494-9400-46110 Bond Interest $191,156 $190,094 $189,705 $189,705 $189,705 $175,025 $193,530 -10.6% 601-494-9400-46300 Deferred Charges Amort.$7,418 $7,418 $7,418 $7,418 $7,418 $7,418 $7,418 0.0%Total Nonoperating Expenses $198,574 $197,512 $197,123 $197,123 $197,123 $182,443 $200,948 -10.1%Change in Net Assets ($9,751)($117,054)($340,193)($132,167)($267,848)($61,549)$2,693,579 4476.3% USE OF NET ASSETS TO BALANCE BUDGET $9,751 $117,054 $340,193 $132,167 $267,848 $61,549 $0 0.0% Other Cash InflowN/A Bond Issuance $0 $0 $2,290,000 $0 $2,290,000 $1,005,000 $1,000,000 0.0% N/A Grant Funds $0 $0 $0 $0 $0 $500,000 $500,000 0.0% N/A Surface Water Loan $23,928 $0 $0 $0 $0 $0 $0 0.0%Total Other Cash Inflow $23,928 $0 $2,290,000 $0 $2,290,000 $1,505,000 $1,500,000 0.0% Other Cash Outflow 601-494-9400-46010 Bond Principal $35,000 $0 $40,000 $40,000 $40,000 $125,000 $190,000 52.0% N/A Surface Water Loan $0 $0 $0 $0 $0 $0 $0 0.0%N/A Acquisition of Capital Assets $33,320 $0 $2,290,000 $0 $2,290,000 $2,000,000 $5,200,000 160.0% Total Other Cash Outflow $68,320 $0 $2,330,000 $40,000 $2,330,000 $2,125,000 $5,390,000 153.6% Keats Ave Well 4 & BoosterNet Assets Net Assets, Beginning of Year $6,872,316 $6,862,565 $6,473,340 $6,745,511 $6,481,250 $6,613,344 $6,551,795 -0.9% Change in Net Assets ($9,751)($117,054)($340,193)($132,167)($267,848)($61,549)$2,693,579 4476.3%Net Assets, Ending of Year $6,862,565 $6,745,511 $6,133,147 $6,613,344 $6,213,402 $6,551,795 $9,245,374 41.1% Cash Cash, Beginning of Year $533,346 $565,407 $415,647 $766,273 $793,206 $924,580 $585,449 -36.7% Change in Net Assets ($9,751)($117,054)($340,193)($132,167)($267,848)($61,549)$2,693,579 4476.3%Deduct: Contrib. of Capital Assets ($187,401)($5,267)$0 $0 $0 $0 $0 N/A Add Back: Depreciation Expense $324,818 $324,191 $340,000 $323,056 $340,000 $335,000 $375,000 11.9% Add Back: Deferred Charges Amort.$7,418 $7,418 $7,418 $7,418 $7,418 $7,418 $7,418 0.0%Add Back: Bond Discount Amort.($711)$0 $0 $0 $0 $0 $0 N/A Add: Other Cash Inflow $23,928 $0 $2,290,000 $0 $2,290,000 $1,505,000 $1,500,000 N/A Deduct: Other Cash Outflow ($68,320)($8,421)($2,330,000)($40,000)($2,330,000)($2,125,000)($5,390,000)153.6%Other Cash Flow Items ($57,920)$0 $0 $0 $0 $0 $0 N/A Cash, Ending of Year $565,407 $766,273 $382,872 $924,580 $832,776 $585,449 ($228,554)-139.0% Water Enterprise Individual Fund Detail 52 City of Lake Elmo 2014 Budget EXPENSES • Full-Time Salaries (41010) See Appendix 1 for the per- sonnel compensation distribution. • Water Meters & Supplies (42300) Acquisition of water meters for replacement of obsolete or non-serviceable meters. • Engineering Services (43030) Expenditures for con- tracted engineering services related to water. • Contract Services (43150) Historically included expen- ditures for financial consulting services and outsourced accounting services. Now that a Full time Finance Di- rector is in place, only the Utility Billing contractor fees are reflected. • Depreciation Expense (43320) Straight-line deprecia- tion is calculated on the water system and related cap- ital assets. • Insurance (43610) Premiums for water infrastructure, buildings, vehicles, and equipment. • Electric Utility (43810) Includes water related electric service. • Water Utility (43820) Externally provided water service. • Repairs & Maintenance (44030) Water related system and equipment repairs and maintenance. • Bond Interest (46110) Interest payments/expense due on the 2005 and 2009A Refunding (2002) G.O. Water Revenue Bonds. OTHER CASH OUTFLOW • Bond Principal (46010) Principal payments due on the 2005 and 2009A Refunding (2002) G.O. Water Revenue Bonds. Due to the full accrual method of ac- counting in the water fund, this amount will ultimately be classified against a bonds payable liability, and no principal expense will be recorded. • Acquisition of Capital Assets for the water fund are ex- plained in the CIP write up included in the Capital Im- provement Plan section of this document. • If excess funds are available in any of the Enterprise Funds, those funds are used to reduce the amount of bonding for infrastructure projects. • In 2014, the water fund had excess funds available and some of those funds were used to finance the in- frastructure costs. Thus, the cash change at the end of 2014 was a reduction but it was a result of using cash reserves rather than incurring additional debt. Due to the full accrual method of accounting in the water fund, these amounts may ultimately be classified as capi- tal assets, and no capital outlay expense would be record- ed. Capital assets would be depreciated each year based on their estimated useful lives on a straight line basis. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. SEWER (602) BUDGETARY OBJECTIVE The sewer fund is responsible for recording expenses related to the cost, maintenance, and replacement of the city sewer system while deriving revenue from user charges. ACCOUNT HIGHLIGHTS REVENUES • Sewer Sales (37200) City property owners are charged on a quarterly basis for sewer usage. • Connection Fees Regional (37250) Sewer hook-up charges. Due to the timing of the Lake Elmo Avenue Sewer Project, it is anticipated that revenue will not sig- nificantly increase until 2015. EXPENSES • Full-Time Salaries (41010) See Appendix 1 for the per- sonnel compensation distribution. • Engineering Services (43030) Expenditures for con- tracted engineering services related to sewer. • Contract Services (43150) Includes expenditures for financial consulting services and outsourced account- 53City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Operating Revenues 602-000-0000-36100 Special Assessments $0 $0 $0 $0 $0 $0 $0 0.0% 602-000-0000-37200 Sewer Sales $48,508 $53,012 $45,000 $54,710 $75,000 $60,000 $76,500 27.5% Total Operating Revenues $48,508 $53,012 $45,000 $54,710 $75,000 $60,000 $76,500 27.5% Operating Expenses Personnel Services 602-495-9450-41010 Full-time Salaries $15,774 $16,222 $16,246 $16,999 $16,246 $16,246 $20,308 -25.0% 602-495-9450-41210 PERA Contributions $1,103 $1,106 $1,178 $1,233 $1,178 $1,178 $1,472 25.0% 602-495-9450-41220 FICA Contributions $944 $1,002 $1,007 $997 $1,007 $1,007 $1,259 25.0% 602-495-9450-41230 Medicare Contributions $221 $234 $236 $233 $236 $236 $295 25.0% 602-495-9450-41300 Health/Dental Insurance $3,696 $3,898 $3,573 $3,749 $3,573 $3,573 $4,466 25.0% 602-495-9450-41420 Unemployment Benefits $0 $0 $0 $0 $0 $0 $0 0.0% 602-495-9450-41510 Workers Compensation $1,258 $1,073 $1,163 $360 $1,163 $1,163 $1,454 25.0% Total Personnel Services $22,995 $23,534 $23,403 $23,571 $23,403 $23,403 $29,254 25.0% Supplies 602-495-9450-42270 Utility System Maint Supplies $210 $0 $1,000 $21 $1,000 $1,000 $1,000 0.0% 602-495-9450-42400 Small Tools & Minor Equipment $0 $200 $1,000 $0 $1,000 $1,000 $1,000 0.0% Total Supplies $210 $200 $2,000 $21 $2,000 $2,000 $2,000 0.0% Other Services and Charges 602-495-9450-43030 Engineering Services $7,488 $14,974 $32,000 $12,514 $32,000 $15,000 $20,000 -33.3% 602-495-9450-43150 Contract Services $4,334 $5,430 $12,000 $682 $12,000 $2,000 $5,000 150.0% 602-495-9450-43210 Telephone $1,255 $1,259 $1,500 $1,510 $1,500 $1,500 $1,500 0.0% 602-495-9450-43310 Mileage $0 $0 $100 $0 $100 $100 $100 0.0% 602-495-9450-43320 Depreciation Expense $8,740 $8,740 $9,200 $8,740 $9,200 $9,200 $84,200 815.3% 602-495-9450-43610 Insurance $0 $1,331 $2,000 $1,371 $2,000 $2,000 $2,000 0.0% 602-495-9450-43810 Electric Utility $1,353 $1,343 $1,500 $1,208 $1,500 $1,500 $1,500 0.0% 602-495-9450-43820 Sewer Utility - Met Council $15,125 $16,477 $16,500 $14,863 $16,500 $15,000 $16,500 -10.0% 602-495-9450-44030 Repairs\Maint Imp Not Bldgs $12 $398 $2,000 $14 $2,000 $300 $1,000 -233.3% 602-495-9450-44300 Miscellaneous Expenses $0 $110 $300 $180 $300 $300 $300 0.0% 602-495-9450-44370 Conferences & Training $0 $0 $500 $0 $500 $500 $500 0.0% Total Other Services and Charges $38,307 $50,062 $77,600 $41,081 $77,600 $47,400 $132,600 -179.7% Total Operating Expenses $61,512 $73,797 $103,003 $64,673 $103,003 $72,803 $163,854 -125.1% Operating Income (Loss)($13,004)($20,784)($58,003)($9,963)($28,003)($12,803)($87,354)-582.3% Nonoperating Revenues 602-000-0000-36210 Interest on Investments $631 $417 $100 $339 $100 $100 $100 0.0% 602-000-0000-37260 Connection Fees Municipal $2,400 $1,785 $0 $10,475 $2,500 $2,200 $2,939,000 133490.9% Total Nonoperating Revenues $3,031 $2,202 $100 $10,814 $2,600 $2,300 $2,939,100 127687.0% Nonoperating Expenses 602-495-9450-46110 Bond Interest $0 $0 $0 $0 $0 $0 $68,446 0.0% Total Nonoperating Expenses $0 $0 $0 $0 $0 $0 $68,446 0.0% Change in Net Assets ($9,973)($18,582)($57,903)$851 ($25,403)($10,503)$2,783,300 26600.5% USE OF NET ASSETS TO BALANCE BUDGET $9,973 $18,582 $57,903 $0 $25,403 $10,503 $0 -100.0% Other Cash Inflow N/A Bond Issuance $0 $0 $0 $0 $0 $3,010,000 $0 -100.0% N/A Internal Loans $0 $0 $0 $0 $0 $0 $0 0.0% Total Other Cash Inflow $0 $0 $0 $0 $0 $3,010,000 $0 -100.0% Other Cash Outflow N/A Bond Principal $0 $0 $0 $0 $0 $0 $135,000 0.0% N/A Internal Loans $0 $0 $0 $0 $0 $0 $0 0.0% N/A Acquisition of Capital Assets $0 $0 $0 $0 $0 $0 $3,000,000 0.0% Total Other Cash Outflow $0 $0 $0 $0 $0 $0 $3,135,000 $0.00 Net Assets Net Assets, Beginning of Year $260,226 $250,253 $220,850 $231,671 $186,497 $232,522 $222,020 -4.5% Change in Net Assets ($9,973)($18,582)($57,903)$851 ($25,403)($10,503)$2,783,300 26600.5% Net Assets, Ending of Year $250,253 $231,671 $162,947 $232,522 $161,094 $222,020 $3,005,320 1253.6% Cash Cash, Beginning of Year $47,474 $29,226 $17,098 $27,062 $2,464 $41,961 $3,050,658 7170.3% Change in Net Assets ($9,973)($18,582)($57,903)$851 ($25,403)($10,503)$2,783,300 26600.5% Deduct: Contrib. of Capital Assets $0 $0 $0 $0 $0 $0 $0 0.0% Add Back: Depreciation Expense $8,740 $8,740 $9,200 $8,740 $9,200 $9,200 $84,200 815.2% Add Back: Deferred Charges Amort.$0 $0 $0 $0 $0 $0 $0 0.0% Add Back: Bond Discount Amort.$0 $0 $0 $0 $0 $0 $0 0.0% Add: Other Cash Inflow $0 $0 $0 $0 $0 $3,010,000 $0 0.0% Deduct: Other Cash Outflow $0 $0 $0 $0 $0 $0 ($3,135,000)0.0% Other Cash Flow Items ($17,015)$7,678 $0 $5,308 $0 $0 $0 0.0% Cash, Ending of Year $29,226 $27,062 ($31,605)$41,961 ($13,739)$3,050,658 $2,783,158 8.8% Can pay bond off early! Sewer 54 City of Lake Elmo 2014 Budget ing services, including accounts payable, payroll, and utility billing. • Depreciation Expense (43320) Straight-line deprecia- tion is calculated on the sewer system and related cap- ital assets. • Sewer Utility – Met Council (43820) Charges are based on sewer flow estimates made by the Metropolitan Waste Control Commission. • Repairs & Maintenance (44030) Sewer related system and equipment repairs and maintenance. OTHER CASH OUTFLOW Acquisition of Sewer Fund specific Capital Assets per the Capital Improvement Plan include the following: • None for 2014 Due to the full accrual method of accounting in the sewer fund, these amounts may ultimately be classified as capi- tal assets, and no capital outlay expense would be record- ed. Capital assets would be depreciated each year based on their estimated useful lives on a straight line basis. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. SURFACE WATER (603) BUDGETARY OBJECTIVE The surface water fund is responsible for recording ex- penses related to the cost, maintenance, and replace- ment of the city surface water system while deriving reve- nue from user charges. ACCOUNT HIGHLIGHTS REVENUES • Surface Water Sales (37100) City property owners are charged on an annual basis for the surface water utili- ty. EXPENSES • Full-Time Salaries (41010) See Appendix 1 for the per- sonnel compensation distribution. • Comprehensive Planning (43020) Expenditures for contracted surface water planning as part of a com- prehensive plan update, and as required by the Valley Branch watershed. • Engineering Services (43030) Expenditures for con- tracted engineering services related to surface water. • Contract Services (43150) Includes expenditures for financial consulting services and outsourced account- ing services, including accounts payable, payroll, and utility billing. • Depreciation Expense (43320) Straight-line deprecia- tion is calculated on the water system and related cap- ital assets. • Street Sweeping (44010) Expenditures for contracted street sweeping services related to surface water. OTHER CASH OUTFLOW Acquisition of Surface Water specific Capital Assets per the Capital Improvement Plan include the following: • Village Stormwater Project ..............................$50,000 • Annual storm water improvements ................$25,000 (drainage, ditching, culverts & ponds) • Rain garden improvements ............................$60,000 Due to the full accrual method of accounting in the sur- face water fund, these amounts may ultimately be clas- sified as capital assets, and no capital outlay expense would be recorded. Capital assets would be depreciat- ed each year based on their estimated useful lives on a straight line basis. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. 55City of Lake Elmo 2014 Budget 2013 2013 2010 2011 2012 2012 2013 Projected 2014 to 2014 Account Number Description Actual Actual Budget Actual Budget Actual Budget Change Operating Revenues 603-000-0000-36200 Miscellaneous Revenue $0 $0 $0 $0 $0 $0 $0 0.0% 603-000-0000-37100 Surface Water Utility Sales $185,425 $238,637 $150,000 $171,229 $185,000 $205,000 $215,000 4.9% Total Operating Revenues $185,425 $238,637 $150,000 $171,229 $185,000 $205,000 $215,000 4.9% Operating Expenses Personnel Services 603-496-9500-41010 Full-time Salaries $28,523 $29,657 $29,299 $25,036 $29,299 $29,299 $32,229 -10.7% 603-496-9500-41210 PERA Contributions $2,002 $1,890 $2,124 $1,815 $2,124 $2,124 $2,336 -10.7% 603-496-9500-41220 FICA Contributions $1,729 $1,983 $1,817 $1,456 $1,817 $1,817 $1,999 -10.7% 603-496-9500-41230 Medicare Contributions $405 $464 $425 $341 $425 $425 $468 -10.7% 603-496-9500-41300 Health/Dental Insurance $5,638 $5,756 $5,370 $5,367 $5,370 $5,370 $5,907 -10.7% 603-496-9500-41420 Unemployment Benefits $0 $0 $0 $0 $0 $0 $0 0.0% 603-496-9500-41510 Workers' Compensation $1,558 $1,384 $1,497 $650 $1,497 $1,497 $1,647 -10.7% Total Personnel Services $39,854 $41,133 $40,532 $34,665 $40,532 $40,532 $44,585 -10.7% Supplies 603-496-9500-42000 Office Supplies $460 $0 $500 $472 $200 $200 $200 0.0% 603-496-9500-42270 Utility System Maint Supplies $0 $491 $500 $266 $500 $500 $500 0.0% 603-496-9500-42400 Small Tools & Minor Equipment $1,477 $400 $1,000 $0 $1,000 $1,000 $1,000 0.0% Total Supplies $1,937 $891 $2,000 $738 $1,700 $1,700 $1,700 0.0% Other Services and Charges 603-496-9500-43020 Comprehensive Planning $0 $0 $3,000 $0 $3,000 $3,000 $3,000 0.0% 603-496-9500-43030 Engineering Services $31,182 $22,392 $30,000 $17,312 $30,000 $30,000 $30,000 0.0% 603-496-9500-43150 Contract Services $17,495 $21,721 $18,000 $7,342 $18,000 $5,000 $5,000 0.0% 603-496-9500-43180 Software Support $0 $1,500 $1,000 $1,000 $1,000 $1,000 $1,000 0.0% 603-496-9500-43220 Postage $1,320 $0 $1,500 $1,500 $1,500 $1,500 $1,500 0.0% 603-496-9500-43320 Depreciation Expense $15,188 $15,187 $18,000 $15,187 $18,000 $16,000 $17,000 -6.3% 603-496-9500-44010 Street Sweeping $8,688 $10,069 $11,000 $9,281 $11,000 $10,000 $11,000 -10.0% 603-496-9500-44030 Repairs/Maint Not Bldg $1,027 $0 $1,500 $775 $1,500 $1,500 $1,500 0.0% 603-496-9500-44300 Miscellaneous Expenses $400 $690 $400 $690 $400 $400 $400 0.0% 603-496-9500-44370 Conferences & Training $2,070 $3,096 $1,800 $2,217 $1,800 $1,800 $1,800 0.0% 603-496-9500-45300 Improvements Other Than Bldgs $32,222 $25,837 $35,000 $14,519 $35,000 $25,000 $30,000 -20.0% Total Other Services and Charges $109,592 $100,491 $121,200 $69,824 $121,200 $95,200 $102,200 -7.4% Operating Expenses $151,383 $142,516 $163,732 $105,227 $163,432 $137,432 $148,485 -8.0% Operating Income (Loss)$34,042 $96,122 ($13,732)$66,002 $21,568 $67,568 $66,515 1.6% Nonoperating Revenues 603-000-0000-36205 Refunds and Reimbursements $32,721 $0 $17,500 $0 $17,500 $0 $17,500 0.0% 603-000-0000-36210 Interest on Investment ($84)$467 $0 $638 $0 $0 $0 0.0% 603-000-0000-36231 Contrib. of Capital Assets $3,546 $4,370 $0 $0 $0 $0 $0 0.0% 603-000-0000-36232 Developer Contributions $155,000 $0 $0 $0 $0 $0 $0 0.0% Total Nonoperating Revenues $191,183 $4,837 $17,500 $638 $17,500 $0 $17,500 0.0% Change in Net Assets $225,225 $100,959 $3,768 $66,640 $39,068 $67,568 $84,015 24.3% USE OF NET ASSETS TO BALANCE BUDGET $0 $0 $0 $0 $0 $0 $0 0.0% Other Cash Inflow N/A Bond Issuance $0 $0 $0 $0 $0 $0 $0 0.0% N/A Surface Water Loan $0 $0 $0 $0 $0 $0 $0 0.0% Total Other Cash Inflow $0 $0 $0 $0 $0 $0 $0 0.0% Other Cash Outflow N/A Bond Principal $0 $0 $0 $0 $0 $0 $0 0.0% N/A Tablyn Park/LEH Loan $0 $0 $0 $0 $0 $0 $0 0.0% N/A Surface Water Loan $23,928 $0 $0 $0 $0 $0 $0 0.0% N/A Acquisition of Capital Assets $0 $0 $0 $0 $0 $0 $0 0.0% Total Other Cash Outflow $23,928 $0 $0 $0 $0 $0 $0 0.0% Net Assets Net Assets, Beginning of Year $568,760 $793,985 $568,668 $894,944 $799,387 $961,584 $1,029,152 7.0% Change in Net Assets $225,225 $100,959 $3,768 $66,640 $39,068 $67,568 $84,015 24.3% Net Assets, Ending of Year $793,985 $894,944 $572,436 $961,584 $838,455 $1,029,152 $1,113,167 8.2% Cash Cash, Beginning of Year ($80,154)($56,266)($112,246)$45,968 $95,079 $119,453 $203,021 70.0% Change in Net Assets $225,225 $100,959 $3,768 $66,640 $39,068 $67,568 $84,015 24.3% Deduct: Contrib. of Capital Assets ($158,546)($4,370)$0 $0 $0 $0 $0 0.0% Add Back: Depreciation Expense $15,188 $15,187 $18,000 $15,187 $18,000 $16,000 $17,000 6.3% Add Back: Deferred Charges Amort.$0 $0 $0 $0 $0 $0 $0 0.0% Add Back: Bond Discount Amort.$0 $0 $0 $0 $0 $0 $0 0.0% Add: Other Cash Inflow $0 $0 $0 $0 $0 $0 $0 0.0% Deduct: Other Cash Outflow ($23,928)$0 $0 $0 $0 $0 $0 0.0% Other Cash Flow Items ($34,051)($9,543)$0 ($8,342)$0 $0 $0 0.0% Cash, Ending of Year ($56,266)$45,968 ($90,478)$119,453 $152,147 $203,021 $304,036 49.8% Surface Water 56 City of Lake Elmo 2014 Budget INTERNAL SERVICE FUNDS SUMMARY7 Internal service funds (a type of proprietary fund) are used to report an activity that provides goods or services to oth- er funds, departments, or agencies of the primary govern- ment on a cost reimbursement basis. The city presently has three internal service funds: 1. Radio Replacement 2. Information Technology (IT) Replacement 3. Furniture, Fixtures, and Equipment (FFE) Replacement Although no longer used, the remaining balances in these accounts need to be accounted for as they are spent down. No further transfers will be made to these funds. BASIS OF ACCOUNTING & BUDGETING Internal service 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-cur- rent) associated with an internal service fund’s activity are included on the balance sheet. Transactions that im- prove or diminish the economic position of the fund are reported as revenues or expenses. Depreciation, using the straight-line method, is charged against all exhaust- ible capital assets as an expense against operations. Internal service 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 prin- ciples generally accepted in the United States of Ameri- ca. RADIO REPLACEMENT (701) BUDGETARY OBJECTIVE Initial 800 MHz radios were purchased by the city as part of a larger federal grant received by Washington County. The radio replacement fund is responsible for ensuring funds are available for future radio upgrades and replace- ment while deriving revenue or receiving transfers from the general fund. ACCOUNT HIGHLIGHTS REVENUES AND TRANSFERS IN • Transfer In (39200) No further transfers will be made from the general fund EXPENSES • Depreciation Expense (43320) Straight-line deprecia- tion is calculated on the radio replacement equipment. OTHER CASH OUTFLOW • Acquisition of Capital Assets Radio replacement capital assets including the following: • None budgeted for 2014 Due to the full accrual method of accounting in the ra- dio replacement fund, these amounts may ultimately be classified as capital assets, and no capital outlay expense would be recorded. Capital assets would be depreciat- ed each year based on their estimated useful lives on a straight line basis. For a detailed listing of the city’s five year projected capi- tal uses, see the Capital Improvement Plan section of this document. INFORMATION TECHNOLOGY RE- PLACEMENT (702) BUDGETARY OBJECTIVE The information technology (IT) replacement fund ac- counts for purchases and replacement of computer equip- ment, printers, photocopiers, telecommunication devices, 57City of Lake Elmo 2014 Budget and related items while deriving revenue or receiving transfers from the general fund. ACCOUNT HIGHLIGHTS REVENUES AND TRANSFERS IN • Transfer In (39200) No futher transfers will be made from the general fund. EXPENSES • Depreciation Expense (43320) Straight-line depre- ciation is calculated on the IT equipment. OTHER CASH OUTFLOW This account will be spent down in 2013 due to the required computer upgrades to allow the City to up- grade to Microsoft. Due to the full accrual method of accounting in the IT fund, these amounts may ultimately be classified as capital assets, and no capital outlay expense would be recorded. Capital assets would be depreciated each year based on their estimated useful lives on a straight line basis. FURNITURE, FIXTURES, AND EQUIP- MENT REPLACEMENT (703) BUDGETARY OBJECTIVE The furniture, fixtures, and equipment (FFE) replace- ment fund accounts for purchases and replacement of non-vehicles FFE equipment and related items while deriving revenue or receiving transfers from the general fund. ACCOUNT HIGHLIGHTS REVENUES AND TRANSFERS IN • Transfer In (39200) No further transfers will be made from the general fund. EXPENSES • Depreciation Expense (43320) Straight-line depre- ciation is calculated on the IT equipment. OTHER CASH OUTFLOW • Acquisition of Capital Assets – No acquisitions are anticipated for 2013. Due to the full accrual method of accounting in the FFE fund, these amounts may ultimately be classi- fied as capital assets, and no capital outlay expense would be recorded. Capital assets would be depreci- ated each year based on their estimated useful lives on a straight line basis. 58 City of Lake Elmo 2014 Budget GROWTH & DEVELOPMENT8 As part of the current growth initative 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 MAJOR ROADWAYS 59City of Lake Elmo 2014 Budget For comparison purposes, the following chart outlines the most recent City developments: Developer Home Type/Avg Home Total Construction Value Whistling Valley $700k $33,600,000 Tapestry $475k $33,250,000 Sanctuary $425k $26,775,000 Discover Crossing $475k $13,300,000 Farms of Lake Elmo $375k $12,375,000 Hidden Meadows $375k $9,750,000 Park Meadows $450k $4,050,000 The following chart summarizes the current new City developments projected (OP) with more detail attached showing the incremental revenue impact of this growth. Developer Home Type/Avg Home Total Construction Value Chase (r)$420,000 $115,080,000 Lennar Corporation (r)$350,000 $111,650,000 Hammes Estates (r)$350,000 $60,550,000 Engstrom (r)$325,000 $52,000,000 Amaris (r)$325,000 $39,325,000 Developer (r-rp)$350,000 $19,600,000 Commercial Developer (c)TBD $25,000,000 Developer (r-g)$400,000 $24,000,000 Total $423,605,000 Annual (7 year absorption)$60,515,000 (r) = residential, (c) = commercial 60 City of Lake ElmoNew Development As We know It…. 10-23-2013Updates from 10/8/13 workshopAvg Home Value201320142015201620172018201920202021202220232024TotalLennar317(7 Year Build Out - start 2013)350,0000505050505050170000317I-94173(7 Years Build Out start 2013)350,0000252525252525230000173I-94360(10 Years Buildin Out Start Fall 2014)350,0000036363636363636363636360I-94 (new)931(3 Year Build Out start Fall 2014)325,000015303018000000093Ryland / Pratt108(5 Years Build Out Start Summer 2014)350,00005202020202030000108Village3042(10 Year Build Out Start Summer 2014)420,0000730303030303030303027304Village138(6 Years Build Out Start Spring 2014)325,0000112323232323120000138Village386(8 Year Build Out Start Spring 2014)350,000024484848484848482600386Total 1,87901372622622502322321691149266631,879Cumulative1373996619111,1431,3751,5441,6581,7501,8161,879New Vlg828Taxable Base47,790,00092,475,00092,475,00088,575,00082,725,00082,725,00060,950,00042,000,00034,300,00025,200,00023,940,000Cumulative140,265,000232,740,000321,315,000404,040,000486,765,000547,715,000589,715,000624,015,000649,215,000673,155,0001New2Increase of 30 rec unitsCity Tax (.27%)64,517378,716628,398867,5511,090,9081,314,2661,478,8311,592,2311,684,8411,752,881WAC (50% at plat)1,145,0001,332,5001,332,500375,000348,000348,000253,500171,000138,00099,00094,500SAC (50% at plat)1,145,0001,332,5001,332,500375,000348,000348,000253,500171,000138,00099,00094,500Bldg Permit Revenue (4.1k)567,4541,085,2041,085,2041,035,500960,944960,944699,998472,188381,064273,372260,946Plan Review Revenue ($2.8k)383,600733,600733,600700,000649,600649,600473,200319,200257,600184,800176,400 Water Connection ($1k)137,000262,000262,000250,000232,000232,000169,000114,00092,00066,00063,000Sewer Connection ($1k)137,000262,000262,000250,000232,000232,000169,000114,00092,00066,00063,000Less Met Council SAC ($2.435)(333,595)(637,970)(637,970)(608,750)(564,920)(564,920)(411,515)(277,590)(224,020)(160,710)(153,405)3,181,4594,369,8344,369,8342,376,7502,205,6242,205,6241,606,6831,083,798874,644627,462598,941INCREMENTAL REVENUEGen'l Fund Rev951,0541,818,8041,818,8041,735,5001,610,5441,610,5441,173,198791,388638,664458,172437,346Water Fund Rev1,282,0001,594,5001,594,500625,000580,000580,000422,500285,000230,000165,000157,500Sewer Fund Rev948,405956,530956,53016,25015,08015,08010,9857,4105,9804,2904,0953,181,4594,369,8344,369,8342,376,7502,205,6242,205,6241,606,6831,083,798874,644627,462598,941Below is a chart showing the on-going analysis related specifically to the current growth initiative. As shown, the growth will strengthen the General Fund and Enterprise Fund Reserve to ensure the City’s ability to make all necessary debt service pay-ments. 61 City of Lake ElmoBaseline OP and OV activityUpdated from 10/8/13 workshopAvg Home Value201320142015201620172018201920202021202220232024TotalOV-Sewer400(5 Year Build Out - start 2014)00507510010075000000400OP-Annual25(7 Years Build Out start 2013)400,000252525252525252525252525300Total 4252575100125125100252525252525700Cumulative100200325450550575600625650675700Taxable Base10,000,00010,000,00010,000,00010,000,00010,000,00010,000,00010,000,00010,000,00010,000,00010,000,00010,000,000Cumulative20,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,00080,000,00090,000,000100,000,000City Tax (.27%)13,50054,00054,00081,000108,000135,000162,000189,000216,000243,000WAC 37,50037,50037,50037,50037,50037,50037,50037,50037,50037,50037,500SAC 225,000300,000375,000375,000300,00075,00075,00075,00075,00075,00075,000Bldg Permit Revenue (4.1k)103,550103,550103,550103,550103,550103,550103,550103,550103,550103,550103,550Plan Review Revenue ($2.8k)70,00070,00070,00070,00070,00070,00070,00070,00070,00070,00070,000 Water Connection ($1k)25,00025,00025,00025,00025,00025,00025,00025,00025,00025,00025,000Sewer Connection ($1k)75,000100,000125,000125,000100,00025,00025,00025,00025,00025,00025,000Less Met Council SAC ($2.435)(182,625)(243,500)(304,375)(304,375)(243,500)(60,875)(60,875)(60,875)(60,875)(60,875)(60,875)353,425392,550431,675431,675392,550275,175275,175275,175275,175275,175275,175INCREMENTAL REVENUEGen'l Fund Rev173,550173,550173,550173,550173,550173,550173,550173,550173,550173,550173,550Water Fund Rev62,50062,50062,50062,50062,50062,50062,50062,50062,50062,50062,500Sewer Fund Rev117,375156,500195,625195,625156,50039,12539,12539,12539,12539,12539,125353,425392,550431,675431,675392,550275,175275,175275,175275,175275,175275,175This schedule reflects the timing of new non development projects and the resulting revenue. The sewer connections for the recently approved sewer expansion project in the Old Village as well as the baseline open space development (OP activity) has continued to expand even during the recent economic downturn. As mentioned previously, all projects requiring debt funding will cash flow. 62 City of Lake Elmo 2014 Budget APPENDIX9 CITY OF LAKE ELMO ORGANIZATIONAL CHART (2014 PROPOSED) Planning Commission Park Commission Economic Development Authority Speak Your Peace Next Generation Human Resources Finance Public Safety PERSONNEL 63CITY OF LAKE ELMO2014 PERSONNEL COMPENSATION DISTRIBUTIONUpdated 11/12/2013Administration 101-410-1320-41010Communications 101-410-1450-41010Finance 101-410-1520-41010Planning & Zoning 101-410-1910-41010Fire 101-420-2220-41010Building Inspection 101-420-2400-41010Public Works 101-430-3100-41010Parks & Recreation 101-450-5200-41010Water 601-494-9400-41010Sewer 602-495-9450-41010Surface Water 603-496-9500-41010TotalPositionFTE13201450152019102220240031005200601602603City Administrator1.0020%0%20%20%5%5%5%10%5%5%5%100%ZulegerCity Clerk/Asst City Administrator1.00100%100%BellDeputy Clerk1.00100%100%BeckieProgram Assistant/Receptionist1.00100%100%BodsbergProject Assistant-Communication1.0035%35%30%100%MacLeodFinance Director1.0080%10%0%10%100%BendelDirector of Community Development1.0075%25%100%KlattPlanner1.00100%100%JohnsonPlanning Program Support Assistant1.0075%25%100%ZiertmanFire Chief1.00100%100%MalmquistFirefighter/Administrative Assistant/Water1.0050%50%100%M CornellBuilding Official/Code Enforcement1.00100%100%ChaseAccounting Clerk1.0025%50%10%15%100%D CornellPublic Works Superintendent1.0050%30%10%5%5%100%Bouthilet, M.Public Works Operator #11.0060%15%10%5%10%100%GustafsonPublic Works Operator #21.0070%15%5%5%5%100%DuddeckPublic Works Operator #31.0070%15%5%5%5%100%ColemerPublic Works Operator #41.0020%5%45%25%5%100%SachsParks Maintainer1.0020%60%10%10%100%NicklayPublic Works Seasonal0.5015%85%100%WierParks Seasonal #10.7515%85%100%LearyParks Seasonal #20.5015%85%100%WitzmannTotal FTE's20.753.550.351.252.701.551.553.404.352.000.700.6022NOTE: Mayor & Council, Election Judges, and Volunteer Firefighters not included 64 City of Lake Elmo 2014 Budget ACCOUNTING SYSTEM: The total set of records and proce- dures which are used to record, classify, and report infor- mation on the financial status and operations of an entity. ACCRUAL BASIS OF ACCOUNTING: Method of account- ing that recognizes the financial effect of transactions, events, and interfund activities when they occur, regard- less of the timing of related cash flows. AD VALOREM TAX: A tax based on value, such as the prop- erty tax. AGENCY FUNDS: One of four types of fiduciary funds. Agency funds are used to report resources held by the re- porting government in a purely custodial capacity (assets equal liabilities). Agency funds typically involve only the receipt, temporary investment, and remittance of fiducia- ry resources to individuals, private organizations, or other governments. APPROPRIATION: A legal authorization granted by a leg- islative body to make expenditures and incur obligations, limited by the amount and time in which it may be expend- ed. AUDIT: A systematic collection of the sufficient, compe- tent evidential matter needed to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently and ef- fectively 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 ex- penditures for a given period and the proposed means of financing them (also known as the Operating Budget). BUDGET DOCUMENT: The official written statement pre- pared by the administration which presents the proposed budget to the legislative body. BUSINESS-TYPE ACTIVITIES: One of two classes of ac- tivities reported in the government-wide financial state- ments. 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 enter- prise funds. CAPITAL ASSETS: Land, improvements to land, ease- ments, buildings, building improvements, vehicles, ma- chinery, 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 an- nual budget. CAPITAL PROJECTS FUNDS: Fund type used to account for financial resources to be used for the acquisition or con- struction 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 FO- CUS: Measurement focus where the aim of a set of fi- nancial 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 report- ing the financial position and results of operations of gov- ernmental funds. DEBT SERVICE: Payment of interest and repayment of principal to holders of a government’s debt instruments. GLOSSARY OF TERMS 65City of Lake Elmo 2014 Budget 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, prorat- ed over the estimated useful life of the asset. ECONOMIC RESOURCES MEASUREMENT FOCUS: Mea- surement focus where the aim of a set of financial state- ments is to report all inflows, outflows, and balances af- fecting 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 re- porting. It is also used by business enterprises and non- profit 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 there- fore 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 in- dustrial property valuation in the seven county metropoli- tan 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 re- sources, together with all related liabilities and residual equities or balances, and charges therein, that are seg- regated 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 liabili- ties reported in a governmental fund. FUND FINANCIAL STATEMENTS: Basic financial state- ments presented on the basis of funds, in contrast to gov- ernment-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, invest- ment 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 ac- count for all financial resources except those required to be accounted for in another fund. GENERAL OBLIGATION BONDS: When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (G.O.) bonds. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Conventions, rules, and 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 finan- cial audit. GLOSSARY OF TERMS 66 City of Lake Elmo 2014 Budget GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): Ultimate authoritative accounting and financial reporting standard-setting body for state and local gov- ernments. The GASB was established in June 1984 to re- place the NCGA. GOVERNMENTAL ACTIVITIES: Activities generally financed through taxes, intergovernmental revenues, and other nonexchange revenues. These activities are usually re- ported 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 ac- count 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: Finan- cial statements that incorporate all of a government’s governmental and business-type activities, as well as its nonfiduciary component units. There are two basic gov- ernment-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 normal- ly are stationary in nature and normally can be preserved for a significantly greater number of years than most cap- ital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sew- er 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 oth- er 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 reve- nue 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, as- sets and liabilities resulting from cash transactions). MODIFIED ACCRUAL BASIS OF ACCOUNTING: Basis of accounting used in conjunction with the current financial resources measurement focus that modifies the accrual basis of accounting in two important ways 1) revenues are not recognized until they are measurable and available, and 2) expenditures are recognized in the period in which governments in general normally liquidate the related liability rather than when that liability is first incurred (if earlier). NET ASSETS: The equity associated with general govern- ment assets and liabilities. OTHER FINANCING SOURCES: Increase in current finan- cial 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 classi- fied by GAAP (including general long-term debt proceeds, proceeds from the sale of capital assets, and operating transfers in). GLOSSARY OF TERMS 67City of Lake Elmo 2014 Budget OTHER FINANCING USES: Decrease in current financial resources that is reported separately from expenditures to avoid distorting expenditure trends. The use of the oth- er financing uses category is limited to items so classified by GAAP (including operating transfers out). PROPRIETARY FUNDS: Funds that focus on the determi- nation 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 cal- culated by reducing the carrying value of restricted assets by amounts repayable from those assets, excluding capi- tal-related debt. REVENUES: Under the current financial resources mea- surement 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 spe- cific capital improvement or service deemed to benefit pri- marily 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 re- stricted to expenditure for specified purposes. TAX LEVY: The total amount to be raised by general prop- erty 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 Account- ing, Auditing, and Financial Reporting, Government Fi- nance Officers Association, 2005. GLOSSARY OF TERMS