HomeMy WebLinkAbout2017 Budget BookCity of St. Anthony Village
3301 Silver Lake Road
St. Anthony, Minnesota 55418
www.ci.saint-anthony.mn.us City of
St. Anthony
ANNUAL BUDGET
2017
The 2017 Annual Budget is
a document that provides
the financial framework for
the City’s operations in the
upcoming year. It helps
to ensure that the City’s
resources are used in a cost
effective manner to maintain
City services and to provide
for long term-capital needs.
The information herein
includes detail budgets for
the City’s general operating
fund, enterprise funds, special
revenue funds, capital funds,
debts service funds and overall
budget information.
CITY OF ST. ANTHONY VILLAGE
3301 Silver Lake Road
St. Anthony, MN 55418
Phone: (612) 782-3301 Fax: (612) 782-3302
website: www.ci.saint-anthony.mn.us
e-mail: city@ci.saint-anthony.mn.us
twitter: @cityofstanthony
Principal City Officials
Mayor
Jerome O. Faust
Council Members
Bonnie Brever
Hal Gray
Jan Jenson
Randy Stille
City Staff
Mark Casey, City Manager
Nicole Miller, City Clerk
Shelly Rueckert, Finance Director
Mark Sitarz, Fire Chief
Michael Larson, Liquor Operations Manager
Jon Mangseth, Police Chief
Jay Hartman, Public Works Director
Charlie Yunker, Assistant to City Manager
1
Engineer - WSB & Associates Full-Time Positions = 58
Financial - Ehlers & Associates Part-Time Positions = 50
Legal - Dorsey & Whitney Public Works Seasonal=10
Planner - WSB & Associates Police Reserves (Unpaid) = 12
Building Inspections - City of New Brighton
PUBLIC WORKS
14 Full time Employees
FIRE
10 Seasonal Employees
City Clerk
POLICE
St. Anthony Organizational Chart
LIQUOR OPERATIONS
Assistant to the City Manager
1 Part time Employee
26 Full time Employees4 Full time Employees
2017
ADMINISTRATION
7 Full time Employees
24 Part time Employees 1 Part time Employee
12 Reserve Officers
MAYOR AND COUNCIL MEMBERS
Planning Commission
Consultants
Parks Commission
City Manager
5 Full time Employees
25 Part time Employees
FINANCE
2
Management Summary
In preparing the 2017 Budget, Staff continued its mission to maintain the existing level of City services
and programs with the use of financially conservative budgeting. The 2017 Budget resulted in a
$399,973 increase over last year’s levy amount, equating to a 6.61% levy increase.
General and HRA Funds
Each year the General Fund revenue and expenditure budget line items are examined for changes in
expected collections/charges, labor adjustments, changes in contract rates, insurance rates, utility
costs, usage of various materials or needs, etc. The findings of this examination produce the drivers
associated with the proposed 5.56% increase in the General Fund Levy equaling an $188,123 increase-
see below:
Personnel costs - 72% of General Fund expenditures*, overall costs up $110,148 or 2.22%
Union contract increases at Union settlements
Health Insurance benefits at Union settlements
Union Longevity, Steps increases at contracted amounts
Public works labor cost associated with Community Center grounds maintenance
allocated to Community Center Fund in 2017
Contracted services - 8% of expenditures, overall costs up $108,369
Salo Park maintenance costs shifted from HRA Fund to General Fund – $36,000
Janitorial services transferred from the Community Center Fund to General Fund,
with no increase in the actual cost of services from 2016 to 2017 – $42,936
IT contracted services up – $25,408
Other Insurance costs – 4% of expenditures, overall costs up $12,017 or 4.94%
Property, casualty and liability costs declined 11%
Worker’s compensation costs increased 26%
Pass through costs - 4% of expenditures, costs down $44,114 or 13.63%, in turn revenues
down equal amount
Lower gasoline costs / Lower gasoline reimbursements
Remaining 12% of expenditure items combined are down $20,136 or 2.16%
Non-Levy tax revenues and transfer revenues combined are down $44,780 **
3
* 2017 General Fund Budget for Expenditures is $7,091,990
**2017 General Fund Budget for Revenues is $7,106,990
The HRA Budget and Levy contains cost drivers similar to the general fund. Conversely this fund does
not have the same resources and transfers available in order to offset cost drivers. Therefore the
proposed Levy increase for the HRA is 12.58% or $17,630, substantially the maximum levy allowed.
This levied amount will allow the Fund to reduce its negative cash position.
Infrastructure Improvements / Debt Levies
During the past several budget cycles there has been significant reconstruction of City streets,
sidewalks, storm water systems, Silver Lake Village, City buildings and park infrastructures.
The 2016 infrastructure projects included:
• Stinson Boulevard from 37th Avenue to Silver Lake Lane NE
• Local flood control / drainage, street lighting, railroad crossing, water and sanitary sewer
improvements
• Salo Park and Stinson Boulevard sidewalk improvements
The 2017 planned infrastructure projects included:
• Penrod Lane from 36th Avenue NE to Skycroft Drive
• Skycroft Drive from Penrod Lane to Maplewood Drive
• Maplewood Drive from Skycroft Drive to Highcrest Road
• Chelmsford Road from 36th Avenue NE to Maplewood Drive
• 37th Avenue from Stinson Boulevard to Highcrest Road (sidewalk and intersection
improvements)
• See Infrastructure Improvement map (Exhibit A)
Funding for the 2017 projects will come from bonds, grants proceeds from the Federal Highway Safety
Improvement Program and special assessments. The bonds issues have 10 and 15 year payment terms.
The Debt Levy is the funding source for the annual payment of the bond principal and interest. The
2017 Debt Related Levies are proposed to increase by a combined 1.77% increase over the 2016
combined levies. The $42,010 increase represents a 0.69% increase to the Overall Levy. A debt levy
reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in levies created by
the annual street reconstruction plan. Without the use of the resources committed to this program
the impact of 2016 bonds issued along with existing debt service requirements would have an added
impact of 6.13% to the Overall Levy.
4
Capital Fund Levies
2017 Capital Funds Levies are proposed to increase by a combined $152,210. The portion of this
increase related to the 2015 phase in plan to rebase liquor transfers is $77,210. The remaining $75,000
increase is to provide funding needed to replace daily operating equipment as its useful life expires.
Levy
The total for all levies is $6,450,785. The levy increase without the benefit of the phased in of reduced
Liquor profits and Debt levy reduction would have been 12.74%. With these two elements of property
tax relief applied the overall levy increase will be limited to $399,973 or 6.61% percent. A summary of
the total levies is as follows:
2017
General Fund Levy $3,573,493
CIP Levy $ 233,200
Street Improvement Levy $1,827,208
Lease Revenue Bonds/Public Facilities $ 361,207
HRA Levy $ 157,800
Tax Abatement (Central/Emerald Park) $ 224,877
Building Improvement Levy $ 73,000
Total $6,450,785
In 2016, the median valuation of the single family home within the City equals $260,000 (Hennepin
County portion). The median valuation is the value at which 50% of the homes are valued lower and
50% are valued higher. The General Fund Levy of $3,573,493 supports the 2017 cost of providing City
services. Therefore an owner of median valued home in the Village will pay $1,670.93 in Property Taxes
for City services.
A breakdown of the costs includes: $948.84 for Police, Fire, Public Works and Park maintenance;
$485.17 for Streets related debt service; $95.91 for the Fire and Public Works buildings related debt
service; $59.71 for parks, sidewalks, flood control / drainage and intersection improvements related
debt service; and $81.30 for the Capital Equipment and Building Improvements.
Capital Equipment Purchases - Appropriation = $539,312
The proposed 2017 Capital Equipment Budget totals $539,312. The 2017 revenue for funding capital
equipment will be provided by the Capital Improvement Levy, MSA Revolving Funds and the sale of
existing equipment. A review of the 2017 revenue and expenditures is as follows:
5
Revenues:
Capital Improvement Levy 233,200$ Finance/Administration
MSA/Revolving Funds 90,000 Computer Hardware 12,525
Trade/Sale of Equipment 3,500 Furniture and Equipment 21,084
Total Revenues 326,700$ Council Chambers -
Total Finance/Administration 33,609$
Expenditures:
Public Works:
Police Department Streets Department
Squad Cars 78,755$ Fleet replacements 45,000$
Unmarked Cars 28,840 Heavy Equipment 6,461
Technology 163,398 Specialty Equipment 37,588
Specialty Equipment 9,657 89,049$
General Equipment 25,450 Parks Department
Total Police 306,100$
Heavy Equipment/Fleet Replacement 37,000$
Fire Department Mowers and Field Maintenance 21,792
Vehicles -$ Speciality Equipment 5,759
Protective Gear 7,641 64,551$
Technology 17,609
Protective Equipment/Tools 13,000 Total Public Works 153,570$
Office Furniture 7,784
Total Fire 46,034$ Total Expenditures 539,312$
Grants, Donations and Partnerships
To help offset the cost of operations and capital equipment, Staff continues to participate in Federal,
State and local grant programs. Donations from private sources along with City partnerships with local
organizations also generate financial benefits. Since 1999 the City has received $31,627,561 in total
grants, donations and US Army AOP proceeds. When spread over a population of 8,965, this represents
$3,528 per resident.
Recently accepted Grants include:
• Rice Creek Watershed District Mirror Lake Flooding - $1,142,000
• Mississippi Watershed Management Organization Additional Grant - $35,000
• Hennepin County Recycling Grant - $20,768
• Public Safety Officer's Disability Grant (Fire Department) - $3,853
• Bell Mortgage (Fire Department) - $2,500
• Kiwanis Club of St Anthony (Police Department) - $500
In addition, the City has received $10,565,371 from the US Army to construct the AOP water treatment
addition to the plant.
6
Liquor Operations
The profitability of St. Anthony’s Liquor Operations continues to be a focus for City Council and Staff.
Liquor sales at both stores were impacted by increased competition within the local Liquor business
beginning in late 2013. The reversal of this affect began in June 2015 and has continued through 2016.
Reduced traffic in the Silver Lake Village shopping area continues to hold down sales volume at that
location. This location’s sales are anticipated to increase upon completion of road construction and
lease-up. The individual Liquor store sales have been projected at either no growth or conservative
growth rate for 2017 budget purposes. Therefore the use of liquor profits to support general
operations has been kept at the annual level of approximately $249,000.
Conclusion
“Our mission is to be a progressive, livable, walkable Village which is sustainable, safe and secure”.
The Mayor, City Council and Staff will continue to closely monitor the needs of the community and set
goals to meet the level of services that the community desires at the most affordable cost.
St. Anthony is a thriving and stable community. A key factor in improving our community is
intergovernmental cooperation between the City, the School District, Hennepin/Ramsey Counties, the
Mississippi Watershed Management Organization, the Rice Creek Watershed as well as the Police
Contracts with Lauderdale and Falcon Heights.
The quarterly meetings held between the School Board and the City Council along with our on-going
dialog and partnering with our local businesses, Hennepin/Ramsey Counties and the Watershed
Districts help us in developing a better understanding of the overall needs of the community.
The City continues to be very active in the League of Minnesota Cities, the Association of Metropolitan
Municipalities (Metro Cities), our local Chamber of Commerce and Kiwanis.
Undoubtedly, the responsible management of our financial resources will contribute to providing
strong services and infrastructure improvements to our Community; management of this process is an
rewarding challenge for the City Council and Staff.
7
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10
1
-
4
4
9
9
-
2
3
-
0
0
0
0
I
N
C
I
D
E
N
T
A
L
E
X
P
E
N
S
E
-
-
-
-
-
4
9
0
,
4
6
5
-
10
1
-
4
9
2
0
-
7
0
-
0
0
0
0
T
R
A
N
S
F
E
R
-
S
E
V
E
R
E
N
C
E
F
U
N
D
-
-
86
,
3
0
0
86
,
3
0
0
86
,
3
0
0
86,300 86,300
10
1
-
4
9
2
0
-
7
0
-
0
0
0
0
T
R
A
N
S
F
E
R
-
H
R
A
P
R
O
J
E
C
T
S
F
U
N
D
-
-
-
1
2
1
,
3
5
4
-
- -
10
1
-
4
9
2
0
-
7
0
-
0
0
0
0
T
R
A
N
S
F
E
R
-
H
R
A
F
U
N
D
-
-
-
82
,
2
3
9
-
- -
10
1
-
4
9
2
0
-
7
0
-
0
0
0
0
T
R
A
N
S
F
E
R
-
R
E
C
Y
C
L
I
N
G
/
R
E
B
A
T
E
-
25
,
0
0
0
-
-
-
- -
TO
T
A
L
1
4
,
6
1
4
$
47
,
7
1
0
$
10
8
,
9
9
4
$
29
5
,
8
9
9
$
92
,
3
0
0
$
582,765 $ 92,420 $
TO
T
A
L
F
U
N
D
E
X
P
E
N
D
I
T
U
R
E
S
5
,
7
0
0
,
1
5
1
$
6,
1
9
8
,
5
6
9
$
6,
5
6
6
,
8
7
4
$
6,
7
8
1
,
0
8
8
$
6,
9
2
5
,
7
0
5
$
7,421,191 $ 7,091,990 $
TO
T
A
L
F
U
N
D
R
E
V
E
N
U
E
5,
9
7
2
,
6
5
1
$
6,
3
7
1
,
7
7
1
$
6,
8
9
0
,
8
9
1
$
6,
7
5
6
,
1
3
3
$
6,
9
3
8
,
0
5
0
$
7,232,423 $ 7,106,990 $
CH
A
N
G
E
I
N
F
U
N
D
B
A
L
A
N
C
E
2
7
2
,
5
0
0
$
1
7
3
,
2
0
2
$
3
2
4
,
0
1
7
$
(
2
4
,
9
5
5
)
$
*
1
2
,
3
4
5
$
(188,768)$ 15,000 $
BE
G
I
N
N
I
N
G
F
U
N
D
B
A
L
A
N
C
E
1,
7
0
2
,
8
3
7
1,
9
7
5
,
3
3
7
2,
1
4
8
,
5
3
9
2,
4
7
2
,
5
5
6
2,
4
4
7
,
6
0
1
2,447,601 2,258,833
EN
D
I
N
G
F
U
N
D
B
A
L
A
N
C
E
1
,
9
7
5
,
3
3
7
$
2,
1
4
8
,
5
3
9
$
2,
4
7
2
,
5
5
6
$
2,
4
4
7
,
6
0
1
$
2,
4
5
9
,
9
4
5
$
2,258,833 $ 2,273,833 $
*
SC
H
E
D
U
L
E
D
U
S
E
O
F
F
U
N
D
B
A
L
A
N
C
E
28
LIQUOR OPERATIONS
The Liquor Fund is an enterprise fund used to account for operations in a manner
that is similar to private business. Profits from operations are directed to the
General Fund and Capital Equipment Fund.
UTILITY (WATER & SEWER)
Enterprise Funds are to account for operations that are financed and operated in
a manner similar to private business. The intent of the City of St. Anthony is to
provide water & sewer services that are to be recovered primarily on a user-fee
basis to the residents and businesses of the City.
ENTERPRISE FUNDS
Fi
s
c
a
l
Y
e
a
r
2
0
1
7
AC
T
U
A
L
A
C
T
U
A
L
A
C
T
U
A
L
A
C
T
U
A
L
B
U
D
G
E
T
E
S
T
.
A
C
T
U
A
L
B
U
D
G
E
T
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
2016 2017
RE
V
E
N
U
E
S
SA
L
E
S
7,
1
3
9
,
3
8
1
$
6,
9
0
8
,
1
4
3
$
6,
1
3
6
,
3
0
1
$
5,
9
5
4
,
8
5
8
$
5,
8
6
6
,
8
8
3
$
5,871,098
$
5,920,381 $
L
E
S
S
:
C
O
G
S
(5
,
4
0
3
,
3
2
1
)
(5
,
2
8
1
,
7
4
3
)
(4
,
7
0
4
,
5
6
6
)
(4
,
5
7
2
,
8
5
8
)
(4
,
5
0
2
,
8
3
3
)
(4,464,691)
(4,499,490)
TO
T
A
L
G
R
O
S
S
P
R
O
F
I
T
1
,
7
3
6
,
0
6
0
$
1,
6
2
6
,
4
0
0
$
1,
4
3
1
,
7
3
5
$
1,
3
8
2
,
0
0
0
$
1,
3
6
4
,
0
5
0
$
1,406,407
$
1,420,892 $
EX
P
E
N
D
I
T
U
R
E
S
SA
L
A
R
I
E
S
,
W
A
G
E
S
,
B
E
N
E
F
I
T
S
RE
G
U
L
A
R
E
M
P
L
O
Y
E
E
30
1
,
5
2
1
$
31
4
,
7
6
4
$
27
6
,
2
9
5
$
24
5
,
0
3
0
$
27
3
,
5
4
4
$
262,537
$
288,791 $
MA
N
A
G
E
R
S
S
A
L
A
R
Y
20
4
,
7
4
1
21
0
,
5
3
5
22
7
,
3
1
6
23
6
,
7
7
9
23
8
,
0
2
4
239,214
244,298
AC
C
O
U
N
T
I
N
G
W
A
G
E
S
55
,
5
6
6
56
,
2
1
0
59
,
8
9
8
52
,
4
3
6
51
,
0
0
0
50,462
56,500
PE
R
A
76
,
9
7
1
37
,
9
0
0
40
,
6
5
7
45
,
3
0
0
42
,
1
9
3
41,416
44,219
FI
C
A
/
M
E
D
I
C
A
R
E
-
41
,
4
4
9
41
,
3
1
9
39
,
6
2
5
43
,
0
3
6
42,244
45,104
IN
S
U
R
A
N
C
E
H
E
A
L
T
H
54
,
6
1
1
64
,
5
2
9
67
,
1
6
7
69
,
7
6
8
64
,
7
8
8
67,908
68,286
IN
S
U
R
A
N
C
E
W
O
R
K
E
R
S
C
O
M
P
7,
0
2
6
7,
2
0
7
6,
6
3
0
5,
6
9
2
9,
4
2
6
8,788
15,390
UN
E
M
P
L
O
Y
M
E
N
T
B
E
N
E
F
I
T
S
98
3
98
6
49
6
1,
0
2
4
1,
0
0
0
1,008
1,000
TO
T
A
L
70
1
,
4
2
0
$
73
3
,
5
8
1
$
71
9
,
7
7
8
$
69
5
,
6
5
3
$
72
3
,
0
1
0
$
713,578
$
763,588 $
AL
L
O
T
H
E
R
E
X
P
E
N
S
E
S
UN
I
F
O
R
M
S
5,
7
2
8
$
-
$
94
3
$
65
7
$
98
1
$
850
$
867 $
MA
T
S
/
T
O
W
E
L
S
L
A
U
N
D
R
Y
4,
2
2
9
6,
2
5
3
11
,
0
6
0
4,
0
8
5
3,
7
7
9
3,840
3,917
OP
E
R
A
T
I
N
G
S
U
P
P
L
I
E
S
14
,
0
9
1
3,
1
0
2
9,
9
4
4
11
,
0
1
0
10
,
4
7
9
10,595
10,809
OF
F
I
C
E
S
U
P
P
L
I
E
S
5,
1
9
1
6,
4
2
6
3,
9
4
3
2,
9
4
6
4,
1
0
2
2,889
3,500
SA
N
I
T
A
T
I
O
N
1,
3
9
2
1,
2
5
1
1,
4
3
0
1,
5
3
5
1,
5
7
2
1,965
2,004
SU
P
P
L
I
E
S
-
E
Q
U
I
P
M
E
N
T
23
,
3
5
1
6,
8
5
2
1,
5
1
6
4,
0
5
8
6,
6
7
7
11,811
9,000
CR
E
D
I
T
C
A
R
D
F
E
E
S
11
9
,
9
7
0
11
8
,
8
2
8
11
0
,
2
1
5
10
5
,
1
0
4
10
8
,
2
6
9
104,212
105,383
CA
M
C
H
A
R
G
E
S
47
,
8
8
4
41
,
5
2
1
67
,
4
4
0
70
,
3
5
1
60
,
9
6
7
50,818
52,851
FR
E
I
G
H
T
43
,
8
3
1
43
,
9
2
4
36
,
4
2
6
33
,
5
7
0
37
,
8
9
8
32,291
32,562
PR
O
F
E
S
S
I
O
N
A
L
S
E
R
V
I
C
E
S
5,
5
9
2
8,
0
6
3
6,
1
1
6
7,
7
0
1
6,
4
2
5
4,993
7,200
AU
D
I
T
F
E
E
S
20
,
4
0
0
14
,
7
0
8
12
,
6
8
8
12
,
3
3
3
15
,
3
0
0
14,700
15,139
IT
&
S
O
F
T
W
A
R
E
S
U
P
P
O
R
T
1,
4
3
2
13
,
5
3
8
16
,
7
5
6
20
,
2
2
3
24
,
8
2
2
23,750
28,674
MI
S
C
C
O
N
T
R
A
C
T
E
D
S
E
R
V
I
C
E
S
-
1,
7
9
8
56
2
52
7
30
0
300
460
WI
N
D
O
W
C
L
E
A
N
I
N
G
42
4
37
6
35
4
80
1
36
8
757
793
CL
E
A
N
I
N
G
S
E
R
V
I
C
E
1,
9
6
5
3,
4
8
7
73
3
7,
2
3
8
6,
0
0
0
450
500
LI
Q
U
O
R
F
U
N
D
-
C
O
M
B
I
N
E
D
O
P
E
R
A
T
I
O
N
S
30
Fi
s
c
a
l
Y
e
a
r
2
0
1
7
AC
T
U
A
L
A
C
T
U
A
L
A
C
T
U
A
L
A
C
T
U
A
L
B
U
D
G
E
T
E
S
T
.
A
C
T
U
A
L
B
U
D
G
E
T
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
2016 2017
LI
Q
U
O
R
F
U
N
D
-
C
O
M
B
I
N
E
D
O
P
E
R
A
T
I
O
N
S
CO
M
M
U
N
I
C
A
T
I
O
N
S
13
,
9
7
0
8,
2
8
3
7,
7
6
5
7,
6
2
9
8,
4
2
7
7,422
7,737
SE
C
U
R
I
T
Y
M
O
N
I
T
O
R
I
N
G
S
E
R
V
I
C
E
4,
7
4
5
1,
3
2
6
2,
1
1
6
1,
3
2
7
1,
9
2
6
1,599
1,631
RE
P
A
I
R
S
&
M
A
I
N
T
E
N
A
N
C
E
13
,
4
6
5
6,
2
6
8
3,
5
2
5
9,
7
3
6
3,
6
6
7
15,806
6,500
TR
A
I
N
I
N
G
,
C
O
N
F
.
&
M
T
G
.
1,
1
9
0
1,
5
6
2
1,
6
2
2
1,
3
0
5
1,
6
8
8
1,394
1,611
ME
M
B
E
R
S
H
I
P
S
&
D
U
E
S
7,
2
9
1
7,
5
4
3
7,
3
4
2
7,
9
0
0
8,
1
7
9
8,233
8,481
AD
V
E
R
T
I
S
I
N
G
A
N
D
S
I
G
N
A
G
E
11
,
7
5
7
13
,
5
8
9
11
,
0
6
3
10
,
1
9
3
11
,
5
1
3
2,574
8,000
IN
S
U
R
A
N
C
E
P
R
O
P
E
R
T
Y
/
L
I
A
B
I
L
I
T
Y
15
,
9
8
7
16
,
2
1
4
15
,
2
4
6
15
,
0
3
2
14
,
9
4
2
13,747
12,345
EL
E
C
T
R
I
C
A
N
D
G
A
S
U
T
I
L
I
T
I
E
S
45
,
6
3
1
57
,
2
5
1
49
,
3
9
8
40
,
8
4
5
47
,
4
3
8
44,160
46,809
TO
T
A
L
O
T
H
E
R
E
X
P
E
N
S
E
4
0
9
,
5
1
8
$
38
2
,
1
6
3
$
37
8
,
2
0
3
$
37
6
,
1
0
5
$
38
5
,
7
1
9
$
359,155
$
366,772 $
TO
T
A
L
O
P
E
R
A
T
I
N
G
E
X
P
E
N
S
E
1
,
1
1
0
,
9
3
8
$
1,
1
1
5
,
7
4
3
$
1,
0
9
7
,
9
8
1
$
1,
0
7
1
,
7
5
8
$
1,
1
0
8
,
7
3
0
$
1,072,733
$
1,130,360 $
OP
E
R
A
T
I
N
G
I
N
C
O
M
E
6
2
5
,
1
2
2
$
51
0
,
6
5
7
$
33
3
,
7
5
5
$
31
0
,
2
4
2
$
25
5
,
3
2
1
$
333,674
$
290,531 $
NO
N
O
P
E
R
A
T
I
N
G
I
N
C
O
M
E
/
(
E
X
P
E
N
S
E
)
(3
,
5
9
0
)
-
5,
8
8
1
4,
2
5
0
4,
7
5
0
4,200
4,450
BO
N
D
/
I
N
T
E
R
E
S
T
F
E
E
S
9,
4
4
7
-
-
-
-
-
-
DE
P
R
E
C
I
A
T
I
O
N
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2016 2017
RE
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10,250 10,641
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38
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6
2016 2017
WA
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2016 2017
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s
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l
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r
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1
6
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c
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u
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l
19
9
8
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0
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F
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n
d
s
20
0
8
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S
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n
d
20
0
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S
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n
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20
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S
Fu
n
d
20
1
4
D
S
Fu
n
d
20
1
5
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S
Fu
n
d
2016 DS Fund COMBINED Actual
50
3
/
3
4
5
3
6
5
5
1
2
5
1
4
5
1
6
5
1
8
5
2
0
5
2
2
5
2
4
5
2
6
2
0
1
6
RE
V
E
N
U
E
S
ST
R
E
E
T
I
M
P
R
O
V
E
M
E
N
T
L
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S
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L
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7
6
6
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0
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,
0
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1
$
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6
,
5
5
3
$
11
1
,
6
4
5
$
12
6
,
8
6
8
$
12
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,
7
5
2
$
69
,
1
7
6
$
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5
,
8
4
8
$
18
5
,
0
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5
$
- $ 1,828,848 $
SP
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I
A
L
A
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S
E
S
S
M
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N
T
S
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5
,
5
7
5
-
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,
7
5
0
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2
5
0
15
,
5
0
0
33
,
1
5
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17
,
5
0
0
30
,
5
0
0
67
,
5
0
0
- 459,725
IN
V
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T
M
E
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N
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E
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7
5
0
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4
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0
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4
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0
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R
-
-
-
-
-
-
-
-
- - -
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L
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S
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0
5
2
,
2
3
5
14
5
,
8
9
6
16
4
,
2
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3
11
6
,
7
9
5
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4
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7
6
8
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6
,
9
1
2
89
,
0
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6
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7
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4
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8
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3
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5
- 2,310,838
EX
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I
T
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DE
B
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V
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:
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N
T
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T
96
,
4
8
3
28
,
2
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5
64
,
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54
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5
7
5
42
,
6
1
3
27
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7
8
6
52
,
8
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71
,
4
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- 471,136
PA
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N
G
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T
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S
2,
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0
0
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0
40
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6
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5
12
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150 - 10,800
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(
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0
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0
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5
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0
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- - 195,000
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L
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.
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S
Fu
n
d
2016 DS Fund COMBINED BUDGET
50
3
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3
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5
36
5
51
2
51
4
51
6
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8
52
0
52
2
52
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M
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,
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6
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5
5
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10
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,
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3
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13
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,
4
1
6
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13
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,
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42
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2
0
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11
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,
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1
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15
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,
8
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102,173 $ 1,787,156 $
SP
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I
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L
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E
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,
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19,876 237,101
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10
,
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64
•Budget Calendar
•How Are My Taxes Used?
•Salaries
•City Fund Balances
•Financial Management Policy
•Exhibit A
BUDGET INFORMATION
65
St. Anthony Budget Calendar followed for 2017 Budget
(Significant Steps)
January 14 & 15, 2016 Goal Setting, Financial Management and Planning.
April 26, 2016: Public Hearing/Provide Residents with an Opportunity to have input in the
budget process.
May - June: City Manager & Staff Meetings to discuss:
» 2017 Operations and Use of Liquor Profits
» Review debt levy reduction plan tied to on-going street projects
» Road Improvement Program
June 29 & August 1, 2016: Financial planning work sessions.
September 13, 2016: Presentation of the Proposed 2017 Budget & Property Tax Levy to the City
Council.
September 13, 2016: Resolution passed setting the proposed 2017 Annual Budget and Property
Tax Levy.
September – December: City Manager & Staff meet to confirm parameters and estimates used in
budgeting process.
October 31, 2016: Capital Funds 2017-2033 Budgets reviewed at work session.
December 13, 2016: Presentation of 2017 Annual Budget and Final Levy with Public Input:
» Adoption of the 2017 Annual Budget and Final Levy.
66
AVERAGE HOME VALUATION = $260,000
ANNUAL BUDGET TAXES =$948.84
ROAD LEVY TAXES = $485.17
PUBLIC FACILITIES - P/W & FIRE $95.91
TAX ABATEMENT $59.71
CAPITAL IMPROVEMENTS $81.30
TOTAL CITY PROPERTY TAXES = $1,670.93
2017 TAX LEVY % OF TAXES
EXPENDITURES BUDGET EXPENDITURES BUDGET PAID
Mayor / Council 81,648$ 67,102$ 1.88%17.82$
Cable Franchise 43,049 - 0.00%-
General Management 123,779 101,727 2.85%27.01
Elections 27,450 22,560 0.63%5.99
Financial / HR Services 341,911 145,211 4.06%38.57
Assessing 62,084 51,023 1.43%13.55
Legal 115,125 73,125 2.05%19.42
Planning / Zoning 75,399 61,966 1.73%16.45
City Buildings 202,663 166,557 4.66%44.22
Emergency Management 73,053 60,038 1.68%15.94
Police Protection 2,110,989 1,132,330 31.69%300.66
Lauderdale/Falcon Heights Contracts 1,345,180 - 0.00%-
Dare Education 14,500 - 0.00%-
Fire Protection 1,058,474 799,931 22.39%212.41
Inspections, Building/Plumbing/Heating/Health 86,968 - 0.00%-
Animal Control 575 473 0.01%0.13
Public Works 919,940 538,686 15.07%143.03
Parks 316,783 260,345 7.29%69.13
Other Expenditures (operating transfers)92,420 92,420 2.59%24.54
GENERAL FUND TOTAL EXPENDITURES 7,091,990$ 3,573,493$ 100.00%948.84$
ROAD LEVY 1,827,208$ $485.17
PUBLIC FACILITIES - P/W & FIRE 361,207$ $95.91
TAX ABATEMENT 224,877$ $59.71
CIP LEVY 306,200$ $81.30
TOTAL LEVY 6,292,985$ $1,670.93
How are my taxes used? - 2017
67
Positions From To
Elected Officials Mayor NA 8,700$
Mayor – Pro Tem NA 7,956$
Council Member NA 7,200$
City Manager NA 150,000$
Departmental Directors and Chiefs 102,228$ 113,431$
Departmental Assistants 64,745$ 99,380$
Senior Fire and Police 75,899$ 90,838$
All Other Full-time Employees:
Union
Fire Fighter 67,459$ 69,138$
Police - Patrol / Sergeant 56,104$ 85,660$
Public Works 45,850$ 60,535$
Non-Union Finance 48,547$ 55,724$
Liquor 53,324$ 67,443$
Police 33,444$ 64,422$
Part-time Employees:
From To
Volunteer Firefighters 12.50$ 14.60$
Code Enforcement Officers 18.45$ 19.27$
Police - Data Entry 19.32$ 19.32$
Liquor Clerks 10.45$ 15.56$
2017 Salary Range
2017 Hourly Rate
68
The audited Funds discussed below had a cumulative fund balance of $26,451,550 at 12/31/2015. A review
of those funds and a description of their intended sources and uses for budget years 2016 and 2017 are as
follows:
General Fund (101) - $2,446,012
The General Fund provides resources for financing general services and daily operations of the City
including Administration, Finance/Insurance, Police, Fire, Public Works and Parks Maintenance. The fund
balance represents the City’s working capital and reoccurring insurance pre-payment.
Recycling Fund (225) - $11,792
This Special Revenue fund’s was established to manage recycling services and programs within the City
limits. Recycling Grants from Hennepin and Ramsey counties fund these activities.
Forfeiture Fund (230) - $26,147
This Special Revenue Fund’s revenues are derived from the sale of vehicles and other seized assets
confiscated for driving under the influence and drug-related offenses. State statute restricts the use of
these funds to supplement the Police Department’s operating fund for use in DUI/Drug-related
enforcement, education and training.
Fire Training Fund (240) - $4,151
The Fire Training Fund provides additional Police and Fire training outside of the General Fund Levy.
Funding of this training is generated by the City’s Certified Fire Instructors providing training services to
other jurisdictions.
HRA Debt Service and HRA Project (various 300’s funds combined) - $187,427
These funds were established to account for the City’s HRA and TIF district projects. The TIF revenues are
used to pay retire related debt associated with TIF project costs.
HRA General Fund (301) – $9,188
The HRA oversees the commercial and residential redevelopment activities in the community. The HRA
General Fund allows for the payment of administrative costs which are associated with advancing
development within the City.
Public Facilities Lease Revenue Bond Fund (311) - $634,704
The Public Facilities Lease Revenue Bond Fund was established to provide debt financing for the
construction of the Public Works building and the Fire Station. The $5,530,000 debt issuance will be repaid
with funds derived from the Public Facilities Debt Levy. The debt will be fully retired by 2024.
Street Improvement Bond Fund (345/503) - $1,559,487
The Street Improvement Bond Fund revenue’s include special assessments and a portion of Road
improvement Levy. These proceeds are used to retire debt associated with road improvement bonds issued
prior to 2009. The Fund balance will be used to service the annual debt service requirements. Debt
obligations serviced by this fund will be fully retired by 2023.
CITY FUND BALANCES
69
Silver Lake Road Bond Fund (365) - $181,778
The Silver Lake Road Bond Fund was established to provide debt financing for the Silver Lake Road
improvements. The Fund balance will be used to service the annual debt service requirements. Debt
obligations serviced by this fund will be fully retired by 2024.
Capital Equipment Fund (401) – $176,933
The Capital Equipment Fund is used for major capital equipment purchases (refer to the 5-Year Capital
Equipment Plan). Current funding is derived of Capital Improvement Levy, Road State aid and proceeds
from the sale of existing equipment. Additional funding was established in 2016 and 2017 to phase out the
transfers of Liquor operating profits and to provide additional support for replacing equipment used in daily
operations.
Park Improvement Fund (501) - $172,768
The Park Improvement Fund provides for the renovation and refurbishing of the City’s park system. Current
revenue sources are donations from private sources and park land dedication fees. The fund revenues are
designated for park improvements.
Tax Abatement Bond Fund (502) - $235,391
This fund provides funds to support the bond payments for the Tax Abatement Bonds issued in 2001 &
2009 for Park Improvements. The 2001 bonds were retired in 2016, reducing annual debt service
requirements by approximately $55,000. The 2009 bonds will be retired in 2025, eliminating the remaining
annual debt service requirements of approximately $175,000.
Revolving Fund (509) - $201,520
The Revolving Fund has served as the general improvement fund for miscellaneous projects. City Council
has designated the use of this fund to projects such as park improvements, capital equipment purchases,
computer technology, street improvements and contingencies for emergency expenditures.
Building Improvement Fund (510) – $1,689
The fund was established to provide funding for infrastructure and non-recurring maintenance costs for
City owned buildings and structures throughout the Village. Funding of these projects was established in
the 2013 Budget by transferring from the Community Center Fund and Liquor proceeds beginning in 2014.
In 2016 the Building Improvement Levy of $73,000 will replace the use of Liquor proceeds.
2009 Street Improvement Bond Fund (512) - $363,819
The 2009 Street Improvement Bond Fund was established to provide debt financing for the 2009 street
improvements. The $2,630,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy and special assessment collections. The debt will be fully retired by 2025.
2010 Road Improvement Bond Fund (514) - $153,003
The 2010 Street Improvement Bond Fund was established to provide debt financing for the 2010 street
improvements. The $1,375,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy and special assessment collections. The debt will be fully retired by 2026.
2011 Road Improvement Bond Fund (516) - $422,071
The 2011 Street Improvement Bond Fund was established to provide debt financing for the 2011 street
improvements. The $1,940,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy, special assessment collections and fund balance. The debt will be fully retired by 2027.
70
2012 Road Improvement Bond Fund (518) - $333,781
The 2012 Street Improvement Bond Fund was established to provide debt financing for the 2012 street
improvements. The $2,195,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy, special assessment collections and fund balance. The debt will be fully retired by 2028.
2013 Road Improvement Bond Fund (520) - $437,719
The 2013 Street Improvement Bond Fund was established to provide debt financing for the 2013 street
improvements. The $1,775,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy, special assessment collections and fund balance. The debt will be fully retired by 2029.
2014 Street Improvement Construction Fund (521) – $2,452
This fund accounted for the costs associated with the feasibility and design cost associated with the
planned reconstruction of Penrod Lane NE from 36th Avenue NE to 37th Avenue NE; Edgemere Avenue NE
from Penrod Lane NE to Chelmsford Road NE; and Wendhurst Avenue NE from Penrod Lane NE to
Chelmsford Road NE. Upon the 2017 receipt of $25,000 of grant funding, the fund will be closed and cash
will be transferred to the associated debt service fund.
2014 Road Improvement Bond Fund (522) - $176,550
The 2014 Street Improvement Bond Fund was established to provide debt financing for the 2014 street
improvements. The $2,070,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy, special assessment collections and fund balance. The debt will be fully retired by 2030.
2015 Road Improvement Construction Fund (523) – $275,475
The 2015 Street Improvement Project Fund accounts for the construction costs associated with
reconstruction of 36th Avenue between Highcrest Road and Silver Lake Road and Chelmsford Road
between 36th and 37th Avenue , the mill and overlay of Saint Anthony Boulevard between Highway 88 and
Ridgeway and reconstruction of Coolidge area alley and certain stormwater improvements. The deficit
fund balance was eliminated in 2015 with the receipt of bond proceeds.
2015 Road Improvement Bond Fund (524) - $60,803
The 2015 Street Improvement Bond Fund was established to provide debt financing for the 2015 street
improvements. The $2,580,000 debt issuance will be repaid with funds derived from the Road
Improvement Levy, special assessment collections and fund balance. The debt will be fully retired by 2031.
2016 Road Improvement Construction Fund (525) – ($550,362)
The 2016 Street Improvement Project Fund accounts for the construction costs associated with the
reconstruction of Stinson Boulevard between 37th Avenue and Silver Lane, sidewalk improvements,
intersection improvements and street lighting improvements. The deficit fund balance was eliminated in
2016 with the receipt of bond proceeds.
Community Services/City Hall Fund (601) - $25,762
The Community Services/City Hall Fund is used to fund the operation and maintenance of the City Hall
building. Funding is comprised of annual rent charges of $125,000 from I.S.D. #282 for the Community
Services portion of the building and a rent transfer from the General Fund for the segment of the building
used for City Hall. Budgeted rent transfer for 2016 is $81,800. Fund balance transfers will prospectively
provide for City Hall capital improvements via the Building Improvement Fund.
71
Water & Sewer Fund (701) - $5,466,693
The Water & Sewer Fund is an enterprise fund used to provide water and sewer services to the community.
Funding for operation and maintenance of the system is provided on a user-fee basis, which is based on
consumption.
Stormwater Utility Fund (706) - $5,810,629
In 2015 the Stormwater Improvement and Debt Service Funds were closed upon the retirement of
stormwater improvement bonds. The proceeds from the closing of these funds established the Stormwater
Utility Fund. Prospectively the primary source of revenues for this fund is the stormwater charges. These
charges are used for stormwater maintenance costs, stormwater capital equipment, and flood control
projects along with providing funds for Debt Levy relief in connection with the annual infrastructure
improvements.
Water Filtration Fund (704) - $4,409,200
The Water Filtration & Purification Fund was established with a cash settlement that the City received from
the United States Army and Honeywell as damages for contaminating the City’s water supply. The original
ten-year agreement which provided 90% funding for operation and maintenance of the carbon filtration
plant has been long-expired.
In 2016 the City made a claim under the existing agreement for damages due to a previously undetected
contaminant (1.4 Dioxin). The Army and the City working together reached a settlement in the fall of 2016.
The settlement will provide funding for an additional treatment process to remove the contaminant from
the drinking water. In connection with this recent settlement the Water Filtration Fund was closed and its
assets were transferred for utility operating and capital needs. The 2016 Army settlement proceeds along
with Water Filtration transfer proceeds established the Utilities Infrastructure Fund. The Utilities
Infrastructure Fund will be the capital fund used prospectively to fund capital needs of the water, sanitary
sewer and fiber optic utilities.
Liquor Fund (705) - $2,114,244
The Liquor Fund is an enterprise fund used to account for operations from the City’s municipal liquor
stores. Profits from operations are directed to reducing the general fund levy. The fund balance is
substantially comprised of cash, inventory, buildings, and fixtures.
Severance Fund (901) - $82,882 (Cash)
The Severance Fund is a restricted use fund that provides funding for employee personal leave and comp-
time severance pay upon their termination of employment with the City. The City’s liability for 2015 totaled
$668,432. The City established an annual fund transfer in 2014 to meet severance obligations as they come
due.
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CITY OF SAINT ANTHONY
FINANCIAL MANAGEMENT POLICY
12/31/2016
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SUMMARY ................................................................................................................. I
REVENUE MANAGEMENT .......................................................................................... II
CASH AND INVESTMENTS .......................................................................................... III
RESERVES .................................................................................................................. IV
ANNUAL BUDGET ...................................................................................................... V
CAPITAL IMPROVEMENTS PLAN ................................................................................. VI
DEBT MANAGEMENT ................................................................................................. VII
ACCOUNTING, AUDITING, AND FINANCIAL REPORTING.............................................. VIII
RISK MANAGEMENT .................................................................................................. IX
EXHIBIT A
TABLE OF CONTENTS
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I. SUMMARY
Scope:
A Financial Management Plan serves two main purposes. It draws together in a single document the
City’s financial policies and establishes clear principles that should help both Staff and Council members
make consistent and informed financial decisions in an increasingly challenging fiscal environment.
Purpose:
The City of St. Anthony is responsible for the adequate funding of services desired by the public, including
the provision and maintenance of public facilities; to manage and plan municipal finances wisely, and to
carefully account for public funds. The City strives to meet the funding required to provide local
government services needed by the community.
The City will maintain or improve its infrastructure on a systematic basis to provide the community with
quality neighborhoods and enhanced property values. Prudent planners must develop adaptive policies
that provide citizens with the best possible service value within the prevailing financial context.
In order to achieve this purpose, this plan establishes City policy in the following areas:
• Revenue Management • Cash and Investments
• Operating Reserve • Budget
• Capital Improvement Plan • Debt Management
• Accounting, Auditing, Financial • Risk Management
Objectives:
• To provide both short-term and long-term future financial sustainability by ensuring adequate
funding for providing services needed by the community.
• To support the City Council’s policy-making by ensuring that important policy decisions are based
on accurate and complete information.
• To provide logical principles to guide the decisions of the City Council and management.
• To employ revenue policies, which prevent undue or unbalanced reliance on certain revenues;
distribute the cost of municipal services fairly; and provide adequate funding to operate desired
programs.
• To provide essential public facilities and prevent deterioration of the City’s public facilities and
infrastructure.
• To protect and enhance the City’s credit rating and prevent default on any municipal debt.
• To ensure the protection of all City funds through a good system of financial planning and
accounting controls.
FINANCIAL MANAGEMENT POLICY
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• To create a document for staff and Council members to refer to during financial planning, budget
preparation, and other financial management issues.
II. REVENUE MANAGEMENT
It is essential to responsibly manage the City’s revenue sources to provide maximum service value to the
community. Some revenue sources, such as intergovernmental proceeds (LGA and other state aids) are
outside of direct City control and are consequently unaddressed by this policy. This policy establishes
guidance for the two major sources of City revenue: property taxes and fees/charges.
Property Taxes:
The property tax levy will not be increased without exploring all other alternatives. The costs of City
services, as annually defined and approved by the City Council will be funded first by the City revenues.
The property tax levy will used to fill the gap between the cost of services and other city revenues.
Priorities for increasing the property tax rate include:
• Maintain current level of City Services
• Long-term protection of the City’s infrastructure.
• Meeting legal mandates imposed by outside agencies.
• Maintaining adequate fund balance and reserve funds sufficient to maintain or improve the City’s
bond rating.
Property tax rate increases to meet other purposes will be based on the following criteria:
• A clear expression of community need.
• The existence of community partnerships willing to share resources.
• Establishment of clearly defined objectives and measurements of success.
Service Fees and Charges:
The City will establish service fees and charges wherever appropriate for the purpose of keeping the
property tax rate at a minimum and to fairly allocate the full cost of services to the users of those
services. Specifically, the City will:
• Establish utility rates sufficient to fund both the operating costs and the replacement of capital
equipment items, plus maintain an adequate level of working capital.
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As part of the City’s enterprise effort, evaluate City services and pursue actions to accomplish the
following:
The City will charge non-resident fees, which reflect the total cost of the activity or programs.
Make services financially self-supporting or, whenever possible, strive to develop and maintain
them as profitable.
Establish user charges and fees at or near a level related to the direct, indirect, and overhead cost
of providing the services for the enterprise operations.
• Annually review City services and identify those for which charging user fees are appropriate. These
services will be identified as enterprise services and fees will be set for each. Included, as part of this
process, will be a market analysis that compares our fees to that charged by other cities.
• Provide Administrative and Financial services which are entrepreneurial in nature. The intent of
entrepreneurial services will be to augment City revenues, enhance service level capacity and to
create efficiencies for both the City and its partners.
Selected criteria:
To determine the specific rate to charge a fee for services rendered, the rate criteria can be one of five
approaches:
1. Market Comparison
Attempt to set fees equal to the market rate.
2. Maximum set by External Source
Fees set by legislation, Uniform Building Code, etc.
3. Entrepreneurial Approach
Fees will be commensurate with cost while providing efficiencies not otherwise available
to the City.
4. Recover the Cost of Service
Program will be self-supporting.
5. Utility Fees
An analysis will be completed each year to determine the rates necessary to meet the operating
costs, encourage conservation, and provide for equipment replacement and working capital.
III. CASH AND INVESTMENTS
Effective cash management is essential to good fiscal management. Investment returns on funds not
immediately required can provide a significant source of revenue for the City. Investment policies must
be well founded and in compliance with legal and administrative requirements in order to protect the
City funds being invested.
Legal Requirements:
Minnesota Statutes authorize and define an investment program for municipal governments.
A. Investment Instruments Authorization
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The City of St Anthony shall invest in the following instruments as allowed by Minnesota Statutes:
a. United States Treasury obligations
b. Federal Agency issues
c. Repurchase agreements (repo’s)
d. Certificates of deposit
e. Commercial paper - prime
f. Bankers acceptances - prime
g. Money Market funds investing exclusively in U. S. government agency issues
B. Supplemental Depositories
Administrative Process:
Investing the City funds shall be undertaken in a manner, which seeks to insure the preservation of capital
in the overall portfolio. Safety of principal is the foremost objective; additionally, liquidity and yield are
also important considerations. It is essential that money is always available when needed; therefore, the
investment goal is to maximize yield while providing cash flow to meet expenditure needs.
The City shall seek to conduct its investment transactions with several reputable investment security
dealers and qualifying banks. The qualifying bank or dealer must have demonstrated, over a significant
period of time, a successful, profitable, and reliable operation. Special care should be exercised when
considering new services.
The City will analyze market conditions and investment securities to determine what yield can be
obtained and attempt to secure the best possible return on all investments consistent with security and
liquidity requirements. Portfolio diversification must also be considered so that investments are not
concentrated in one institution, in one type of investment, or purchased from one dealer.
The investment portfolio of the City shall be designed to attain an average rate of return regularly
exceeding the average return on three month U.S. Treasury bills, while seeking to augment returns above
this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent
investment principles.
Investment officials participating in the investment process shall seek to act responsibly as custodians of
the public trust and shall avoid any transaction that might impair public confidence in the City of St.
Anthony’s ability to govern effectively.
IV. RESERVES
It is important for the financial sustainability of the City to maintain reserve funds for unanticipated
expenditures or unforeseen emergencies, as well as to provide adequate working capital for current
operating needs so as to avoid short-term borrowing.
Policy Statement:
1. The City will determine the disposition of any general fund surplus beyond the City’s minimum
Fund Balance as part of the annual budget process. These funds are available for appropriation by
the Council for unanticipated expenditures and unforeseen emergencies.
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2. The City will maintain fund balances in the General and Special Revenue Funds at a level which will
avoid issuing short-term debt to meet the cash flow needs of the current operating budget.
Generally, the goal of the City is to maintain a minimum balance of 30% - 35% of the operating
budget. Within the general operating fund is the accounting of the Police contractual services
provided to Lauderdale and Falcon Heights. Since each City makes payment on a monthly basis,
there are no reserves deemed necessary for these expenditures.
This need could fluctuate with each year’s budget objectives and appropriations such as large
capital expenditures and variations in the collection of revenues.
V. ANNUAL BUDGET
The Annual Budget is the financial plan for funding the costs of City services, programs and infrastructure.
The Annual Budget includes the General Fund, the HRA Fund, the Special Revenue Funds, the Debt
Service Funds and the Long-Term Capital Funds Budgets. Enterprise operations are budgeted in separate
Enterprise Funds.
1. The City Manager shall submit a budget in which appropriations shall not reasonably exceed the
total of the estimated revenues and available fund balance.
2. The City will coordinate the Long-Term Capital Funds Budgets with the development of the
operating budget. Operating costs associated with capital improvements will be projected for
budget purposes and that budget will be approved by the Council.
3. The budget will provide for adequate operation, maintenance, replacement of City equipment and
for their orderly replacement.
4. The impact on the operating budget from any new programs or activities being proposed should be
minimized by providing funding with newly created revenues whenever possible.
5. The City will maintain a budgetary control system to help it adhere to the budget.
6. The City administration will prepare monthly reports comparing General Fund actual revenues and
expenditures to the budgeted amounts.
7. The Annual budget will provide for the major goals to be achieved and the services and programs to
be delivered for the level of funding provided.
8. When establishing operating expenses, Enterprise fund budgets shall be balanced with operating
revenues. Profits from Utility based operations can be transfer to the Utility’s capital fund for the
replacement costs of Utility’s buildings, equipment and infrastructure. The long-term transfer
needs will be considered when establishing rates and charges for services. Profits from Liquor
based operations can be transferred for General Fund operations.
9. Each year, the City Council will approve an Annual budget to establish a maximum level of total
expenditures. The City Manager will be allowed to reallocate budgeted funds between departments
and programs as needed during the year, provided that total maximum expenditures are not
exceeded.
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VI. CAPITAL IMPROVEMENTS
The demand for services and the cost of constructing and maintaining the City’s infrastructure is always
present. The Long-Term Capital Funds Budgets provide a realistic projection of community needs, the
meeting of those needs, and a framework to support City Council prioritization of those needs.
Capital improvements include the scheduling of public improvements for the community over a 15- year
period, and take into account the community’s financial capabilities as well as its goals and priorities. A
“capital improvement” is defined as any major nonrecurring expenditure for physical facilities of
government. Typical expenditures are the construction of roads, stormwater improvements utilities,
parks, vehicles and capital equipment replacement. Capital improvements are directly linked to goals and
policies, land use, community needs and sections of the Comprehensive Plan.
Development Process:
Staff will comprise, prioritize, consolidate and recommend Capital Improvement Projects.
Devise proposed funding sources for proposed projects. Recommended funding sources will be
clearly stated for each project.
Analyze debt service related to new projects. Each project, when applicable, will include its
separate impact on the tax levy and/or utility charges as well as its total dollar cost.
Project and analyze total debt service related to the total debt of the City.
A debt study will be provided summarizing the impact of the project, review of the revenues and
proposed debt.
The City Council will evaluate all proposed Capital Improvements and decide on the following:
Project Prioritization
Funding Source
Acceptable Financial Impact on Tax Levy, Total Debt, or Utility Rate Levels.
VII. DEBT MANAGEMENT
The use of borrowing and debt is an important and flexible revenue source available to the City. Debt is a
mechanism, which allows capital improvements to proceed when needed, in advance of when it would
otherwise be possible. It can reduce long-term costs due to inflation, prevent lost opportunities, and
equalize the costs of improvements to present and future constituencies.
Debt management is an integral part of the financial management of the City. Adequate resources must
be provided for the repayment of debt, and the level of debt incurred by the City must be effectively
controlled to amounts that are manageable and within levels that will maintain or enhance the City’s
credit rating. A goal of debt management is to stabilize the overall debt burden and future tax levy
requirements to ensure that issued debt can be repaid and prevents default on any municipal debt.
Debt Management Practices:
Wise and prudent use of debt provides fiscal and service advantages. Overuse of debt places a burden on
the fiscal resources of the City and its taxpayers. The following guidelines provide a framework and limit
on debt utilization:
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1. The City will confine long-term borrowing to planned capital improvements.
2. The City will not use long-term debt for current operations.
3. The City will pay back debt within a period not to exceed the expected useful life of the street
project, with at least 50% of the principal retired within two-thirds of the term of the bond issue.
4. Total general obligation debt shall not exceed 2% of the total market valuation of taxable property
in the City.
5. Direct net debt (gross debt less available debt service funds) shall not exceed 3% of the total
market valuation of taxable property in the City.
6. The City will maintain good communications with bond rating agencies regarding its financial
condition. The City will follow a policy of full disclosure in every financial report and bond
prospectus.
7. The City will use refunding mechanisms to reduce interest cost when economically feasible.
8. The City will manage the Debt Levy associated with its Road Improvement Program to reduce
the overall future high point of levy requirements during the final years of the program. The
City will apply future unencumbered utility charges; Municipal State Aid fund, excess bond
balances and one time revenue sources to accomplish this reduction in future levy
requirements (Debt Levy Reduction plan). See Exhibit A for the current projections of the
Debt Levy Reduction plans impact.
VIII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
The key to effective financial management is to provide accurate, current, and meaningful information
about the City’s operations to guide decision making and enhance and protect the City’s financial
position.
Policy Statement:
1. The City’s accounting system will maintain records on a basis consistent with generally accepted
accounting standards and principles for local government accounting as set forth by the
Government Accounting Standards Board (GASB) and in conformance with the State Auditor’s
requirements per State Statutes.
2. The City will establish and maintain a high standard of accounting practices.
3. The City will follow a policy of full disclosure written in clear and understandable language in all
reports on its financial condition.
4. A primary goal of the Finance Department is to provide timely monthly, quarterly and annual
financial reports to users.
5. An independent public accounting firm will perform an annual audit and issue an opinion on the
City’s financial statements.
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6. The City Council will review the audit report, approve its findings and meet with the Auditor to
discuss any questions they might have in regard to the audit.
IX. RISK MANAGEMENT
A comprehensive risk management plan seeks to manage the risks of loss encountered in the everyday
operations of an organization. Risk management involves such key components as risk avoidance, risk
reduction, risk assumption, and risk transfers through the purchase of insurance. The purpose of
establishing a Risk Management Policy is to help maintain the integrity and financial stability of the City,
protect its employees from injury, and reduce overall costs of operations.
Policy Statement:
1. The City will maintain a Risk Management Program that will minimize the impact of legal liabilities,
natural disasters or other emergencies through the following activities:
a. Loss prevention - prevent losses where possible
b. Loss control - reduces or mitigates losses
c. Loss financing - provide a means to finance losses
d. Loss information management - collects and analyzes data to make prudent prevention, control
and financing decisions
2. The City will review and analyze all areas of risk in order to, whenever possible, avoid and reduce
risks or transfer risks to other entities. Of the risks that must be retained, it shall be the policy to
fund the risks which the City can afford and transfer all other risks to insurers.
3. The City will maintain an active safety committee comprised of City employees.
4. The City will periodically conduct educational safety and risk avoidance programs within its various
divisions.
5. The City will, on an ongoing basis, analyze the feasibility of self-funding and other cooperative
funding options in lieu of purchasing outside insurance in order to provide the best coverage at the
most economical cost.
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City of St. Anthony
Debt Levy - Roads, Tax Abatement, Public Facilities 802,382 897,435 902,685 918,015 916,965 920,850 929,565 937,755 950,670 729,039 565,647 142,865 138,581 139,547
2017 Levy Year
Existing
Fund 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
$1,700,000 2003A (Refunding 2011A)503 118,057 121,103 123,992 121,473 124,204 132,028 134,286
$1,790,000 - 2004A (Refunded in 2011B)503 128,800
$1,695,000 - 2005A (Refunded in 2011B)503 121,500
$2,485,000 - 2006A (Refunded in 2012A)503 186,668
$2,050,000 - 2007A (Refunded in 2012A)503 137,737
$1,305,000 - 2008A (2014C)365 175,652 177,319 178,526 169,602 170,021 172,436 169,496 171,806 168,761 170,966 172,673 173,040
$2,630,000 - 2009A 512 184,768 185,450 185,975 186,343 186,553 186,605 186,500 191,120 189,766 193,084 195,709 197,664 193,674
$1,645,000 - 2009B (2001B & 2002A)503 196,995 192,401 187,808 193,714 183,608 106,150
$1,375,000 - 2010A 514 108,587 112,065 110,175 108,285 111,645 109,413 112,209 114,624 111,532 113,665 115,450 111,729 113,258 114,350
$1,940,000 - 2011A 516 141,991 138,684 140,626 142,411 138,789 140,416 141,886 142,871 138,434 139,248 139,537 139,642 139,183 138,526 137,266
$2,210,000 - 2011B (2004A and 2005A) 503 - 226,977 226,899 221,025 225,157 223,441 226,430 223,528 109,589
$9,495,000 - 2012A (2006A & 2007A)503/518 - 423,185 518,973 519,813 530,693 520,758 520,968 526,218 531,153 535,773 306,356 141,358 142,865 138,581 139,547 140,033
$1,775,000 - 2013A 520 - - 118,685 118,930 119,176 119,120 119,063 118,523 117,984 117,082 115,939 119,864 118,133 116,402 119,133 116,476 119,070 -
$2,230,000 - 2014A 522 - - - 157,629 155,848 159,318 157,433 155,548 153,663 157,028 154,896 151,488 153,330 155,015 151,292 152,820 154,190 154,914
$2,580,000 - 2015A 524 - - - - 185,075 182,847 185,869 183,537 186,454 184,016 186,829 184,286 186,993 183,886 186,029 182,331 183,884 184,819 185,111
Total Levy 1,500,755 1,577,184 1,791,659 1,939,225 2,130,768 2,052,533 1,954,141 1,827,774 1,707,336 1,610,862 1,387,388 1,219,071 1,047,436 846,760 733,267 591,660 457,144 339,733 185,111 - - - - - - - - - -
2016 Road Improvements
$1,455,000- 2016A 2016A 102,173 106,135 104,742 103,349 101,956 105,813 104,315 102,817 106,568 104,965 103,362 107,009 105,025 103,042 105,757
2017-2025 Road Improvements
$2,871,000 - 2017A 2017A 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449 200,449
$2,250,000 - 2018A 2018A 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778 163,778
$2,393,000 - 2019A 2019A 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651 176,651
$2,946,000 - 2020A 2020A 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681 231,681
$2,858,000 - 2021A 2021A 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188 225,188
$2,784,000 - 2022A 2022A 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198 231,198
$2,925,000 - 2023A 2023A 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271 236,271
$2,729,000 - 2024A 2024A 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598 228,598
$3,048,000 - 2025A 2025A 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222 249,222
2016-2031 Mill/Overlays, Sidewalks and Street Lighting
$685,000 - 2026A 2026 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330 67,330
$733,000 - 2027A 2027 66,894 66,894 66,894 66,894 66,894 66,894 66,894 66,894 66,894 66,894 66,894 66,894 66,894
$595,000 - 2028A 2028 57,447 57,447 57,447 57,447 57,447 57,447 57,447 57,447 57,447 57,447 57,447 57,447
$520,000 - 2029A 2029 42,933 42,933 42,933 42,933 42,933 42,933 42,933 42,933 42,933 42,933 42,933
$489,000 - 2030A 2030 45,700 45,700 45,700 45,700 45,700 45,700 45,700 45,700 45,700 45,700
$576,000 - 2031A 2031 49,959 49,959 49,959 49,959 49,959 49,959 49,959 49,959 49,959
Additional levy - - - - - 102,173 306,584 468,969 644,227 874,515 1,103,560 1,333,260 1,568,033 1,800,382 2,048,001 2,113,728 2,184,269 2,239,732 2,280,682 2,329,097 2,273,299 2,072,850 1,909,072 1,732,421 1,500,740 1,275,552 1,044,354 808,083 579,485
Road levy before debt reduction 1,500,755 1,577,184 1,791,659 1,939,225 2,130,768 2,154,706 2,260,725 2,296,743 2,351,563 2,485,377 2,490,948 2,552,331 2,615,469 2,647,142 2,781,268 2,705,388 2,641,413 2,579,465 2,465,793 2,329,097 2,273,299 2,072,850 1,909,072 1,732,421 1,500,740 1,275,552 1,044,354 808,083 579,485
Stormwater Debt Service 285/250 (25,000) (170,000) (150,000) (80,000) (85,000) (90,000) (90,000) (115,000) (135,000) - - - - - - - - - - - - - - - -
MSA Advance (7,500) (25,000) (85,000) (153,000) (152,500) (104,000) (153,000) (50,000) (45,450) 59,780 19,281 (15,631)
Excess Bond Balance (115,000) (101,921) (92,500) (140,000) (85,000) (115,000) (147,500) (192,500) (135,000) (6,652)
Conduit Fee (15,079)
Public Facilities/Abatement Excess (5,000) (35,000) (45,000) (55,000) (55,000) (65,000) (75,000) (95,000)
Infrastructure Levy 50,000 175,000 300,000 500,000 650,000 800,000 200,000 275,000 350,000 425,000 500,000
Road improvement levy 1,500,755 1,577,184 1,776,580 1,791,725 1,828,847 1,792,206 1,842,725 1,919,243 1,987,563 2,029,877 2,108,448 2,137,331 2,563,367 2,706,922 2,800,549 2,689,757 2,641,413 2,579,465 2,515,793 2,504,097 2,573,299 2,572,850 2,559,072 2,532,421 1,700,740 1,550,552 1,394,354 1,233,083 1,079,485
296,921.00 327,500.00 373,000.00 322,500.00 309,000.00 390,500.00 307,500.00 320,000.00 52,102.00 -59,780.00 -19,281.00 15,631.00
% Increase in Road levy 5.09%12.64%0.85%2.07%-2.00%2.82%4.15%3.56%2.13%3.87%1.37%19.93%5.60%3.46%-3.96%-1.80%-2.35%-2.47%-0.46%2.76%-0.02%-0.54%-1.04%-32.84%-8.83%-10.07%-11.57%-12.46%
1,827,206 1,887,725 1,974,243 2,042,563 2,094,877 2,183,448 2,232,331 2,563,367 2,706,922 2,800,549 2,689,757 2,641,413 2,579,465 2,465,793 2,329,097 2,273,299 2,072,850
$ Increase in Road levy 76,429 199,396 15,145 37,122 (36,640.8) 50,519 76,518 68,319 42,314 78,571 28,883 426,036 143,556 93,627 (110,792) (48,345) (61,948) (63,672) (11,696) 69,202 (449) (13,778) (26,651) (831,681) (150,188) (156,198) (161,271) (153,598)
TAX ABATEMENT (INCLUDES 2016B)149,395 146,480 151,025 153,148 155,112 224,877 231,288 231,594 236,622 236,049 235,114 238,929 237,182 93,627 - - - - - - - - - - - - - - -
PUBLIC FACILITIES 409,773 379,197 378,462 382,872 387,322 396,207 399,882 403,347 406,602 414,897 422,683 424,289 - - - - - - - - - - - - - - - - -
559,168 525,677 529,487 536,020 542,434 621,084 631,170 634,941 643,224 650,946 657,797 663,218 237,182 93,627 - - - - - - - - - - - - - - -
FLATL LINE 2,854,932 2,854,932 2,854,932
Total levied debt after reduction 2,059,923 2,102,861 2,306,067 2,327,744 2,371,281 2,413,290 2,473,895 2,554,185 2,630,787 2,680,823 2,766,245 2,800,549 2,800,549 2,800,549 2,800,549 2,689,757 2,641,413 2,579,465 2,515,793 2,504,097 2,573,299 2,572,850 2,559,072 2,532,421 1,700,740 1,550,552 1,394,354 1,233,083 1,079,485
Total levied debt before reduction 2,059,923 2,102,861 2,321,146 2,475,244 2,673,202 2,775,790 2,891,895 2,931,685 2,994,787 3,136,323 3,148,745 3,215,549 2,852,651 2,740,769 2,781,268 2,705,388 2,641,413 2,579,465 2,465,793 2,329,097 2,273,299 2,072,850 1,909,072 1,732,421 1,500,740 1,275,552 1,044,354 808,083 579,485
% Increase in levied Debt 2.08%9.66%0.94%1.87%1.77%2.51%3.25%3.00%1.90%3.19%1.24%0.00%0.00%0.00%-3.96%-1.80%-2.35%-2.47%-0.46%2.76%-0.02%-0.54%-1.04%-32.84%-8.83%-10.07%-11.57%-12.46%
% Increase in levied Debt prior 2.08%9.66%0.94%1.87%2.49%3.38%2.94%1.51%3.01%3.02%2.78%1.90%0.80%-1.15%-2.55%-2.39%-2.17%-2.28%-0.55%-0.92%-0.39%-0.65%-1.11%-32.74%-8.94%-10.00%-11.74%-12.66%
$ Increase in levied Debt 42,939 203,205 21,678 43,537 42,009 60,605 80,289 76,602 50,036 85,422 34,304 0 0 0 -110,792 (48,345) (61,948) (63,672) (11,696) 69,202 (449) (13,778) (26,651) (831,681) (150,188) (156,198) (161,271) (153,598)
284,756
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
1,600,000
1,700,000
1,800,000
1,900,000
2,000,000
2,100,000
2,200,000
2,300,000
2,400,000
2,500,000
2,600,000
2,700,000
2,800,000
2,900,000
3,000,000
3,100,000
3,200,000
3,300,000
3,400,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Total Levied Debt before reduction
Total Levied Debt after reduction
Exhibit A 83