HomeMy WebLinkAbout2021-08-12 Council Work Session Agenda Packet
Council Work Session Agenda
August 12, 2021 - 5:30 pm
1. Call to Order / Roll Call
2. Draft 2022 Budget and Financial Management Plan*
3. Unscheduled Items
4. Adjournment
*Includes Materials - Materials relating to these agenda items can be found in the Council Chambers Agenda
Packet book located by the entrance. The complete Council Agenda Packet is available electronically on the City website
at www.corcoranmn.gov.
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Meeting Via Telephone/Other Electronic Means
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comment visit:
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Item 2.
1
8200 County Road 116 Corcoran, MN 55340
763-420-2288 www.ci.corcoran.mn.us
MEMO
Meeting Date: August 12, 2021
To: City Council
From: Brad Martens, City Administrator
Re: Draft 2022 Budget and Financial Management Plan
____________________________________________________________________
Staff has completed the first draft of the 2022 budget for review by the City Council. The
draft includes the funds needed for the continuation of services provided, with additional
recommendations to meet the increased needs of the organization.
Direction for staff was to draft a budget that does not raise the tax rate. It is estimated
that the tax levy can increase by $727,948 and maintain the existing tax rate of
43.522%. The first draft of the 2022 budget has a tax levy increase of $774,595 which is
$46,647 over that amount. Staff will continue to refine the budget to achieve that goal of
no increase in tax rate. The budget is presented as is to receive initial feedback from the
City Council prior to that refinement taking place.
The following outlines some of the larger changes in expenditures to the budget from
2021. The attached draft budget includes many other changes on various line items.
Staffing:
The largest increase to the draft 2022 budget is staffing. The City has seen significant
increases in new home construction with a major uptick beginning in 2019. The
projected new homes constructed between 2019-2021 is 646 units. This non-
incremental increase in new homes requires the same non-incremental increase in
staffing to ensure basic services can continue to be provided. In order to achieve this,
the following additional positions are included in the 2022 budget as compared to the
2021 budget. In addition to the added positions, a 3% increase in wages is assumed as
well as a 10% increase in insurance costs split 70/30 by the employer/employee.
Administration:
• Full year of finance manager position (hired mid-way through 2021)
• Intern position
• Part-time Administrative Assistant for Planning
Item 2.
2
• Part-time Program Coordinator for recreation
Public Works:
• Development Superintendent (partially paid by development)
• Operations Superintendent
• Administrative Assistant/Permit Tech
Public Safety
• Sergeant
• Administrative Assistant increase from .75 FTE to 1 FTE
• Additional Community Service Officer hours
• Increase in part-time police wages
In addition to the staffing increases, the following outlines some of the larger non-
staffing expenditure increases included in the draft budget.
• Elections: $15,600
o Need for the 2022 general election
• Information technology: $29,500
o Increased monthly hours and added costs for additional staff needs
• Engineering: $15,000
o Increased demand. This would be higher if not for the investment in
staffing
• Fire: $28,900
o Assuming 7.5% increase
• Building inspections
o Assuming 230 new homes; this line item only covers direct costs paid and
does not include city staff or other direct or indirect costs included in other
budget categories
o Revenues are also increased significantly to help offset costs
• Budget transfers: $125,000
o Increase in CIP, stormwater fund, and facility fund contributions
• Dust control revenue: $37,500
o No billing of dust control planned in 2022
The City Council should provide direction on changes to be made prior to bringing
another draft back for review. A preliminary levy must be adopted by September 30th
and tax impact statements will be mailed to all properties in November based upon that
adopted preliminary levy. The Council may wish to schedule an additional work session
if significant conversation is required.
In addition to the draft 2022 budget, the draft Financial Management Plan is attached.
This important document includes all city funds and provides guidance for decision
making moving forward.
One specific area of discussion in the financial management plan is the proposed water
improvements project outlined in the CIP and Debt section and the Water Fund section.
The proposed $14,250,000 project is financially feasible based upon the growth
assumptions used in the report between trunk fees and water users. The assumptions
Item 2.
3
used include continued pace of development with over 200 new homes per year
through 2024 and pace slowing thereafter. This is a conservative projection based upon
the growth the city is seeing. The assumptions also include a multi-family housing
project taking place which is the proposed St. Therese campus. Staff will be looking for
direction on whether or not to proceed with the water improvements projects based
upon the finances projected.
Attachments:
1. Rev. 1 – Draft 2022 Budget
2. Draft Financial Management Plan
1 CITY OF CORCORAN Draft August 12, 2021
2 2021 Rev 1
3 OSA
LINE ITEM
CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
4 CITY HALL DEPARTMENTS COMMENTS
5 City Council
6 41100-100 Wages & Salaries 6,600 19,260 19,260 19,260 19,260 19,260 19,260 -$
7 41100-122 FICA / SS 409 1,195 1,195 1,195 1,195 1,195 1,195 -$
8 41100-126 Medicare 96 280 280 280 280 280 280 -$
9 41100-208 Training 1,000 2,500 1,000 1,500 5,000 6,500 6,500 -$
10 41100-210 Operating Expense - 3,000 3,000 1,500 1,500 3,000 3,000 -$ Electronic Device Stipend
11 41100-364 Workers' Compensation 75 95 70 74 71 -$
12 8,180 26,330 24,805 23,809 27,306 30,235 30,235 -$
13
14 News Letter/Website -$
15 41130-351 News letter, Misc. literature 6,000 6,500 8,000 8,500 9,000 9,500 10,000 500$
17 41130-354 Website 1,500 2,000 2,000 5,500 4,500 5,000 5,000 -$
18 7,500 8,500 10,000 14,000 13,500 14,500 15,000 500$
19
20 Elections -$
21 41410-210 Operating Supplies 7,000 1,600 8,500 1,700 14,000 2,400 18,000 15,600$
22 7,000 1,600 8,500 1,700 14,000 2,400 18,000 15,600$
23
24 Auditor -$
25 41540-300 Professional Services 20,000 23,000 23,000 24,000 24,500 25,000 28,000 3,000$ Abdo, Eick & Meyers - Additional Federal Review with ARPA
26 Financial Services 6,000 7,500 7,500 8,000 8,000 12,000 15,000 3,000$ Accounting/Audit Prep & OPEB actuarial from Gallagher
29 26,000 30,500 30,500 32,000 32,500 37,000 43,000 6,000$
30 -$
31 Assessor -$
32 41550-210 Operating Supplies 1,000 1,000 1,000 1,000 1,000 1,000 1,000 -$
33 41550-300 Professional Services 59,000 57,000 59,250 65,500 66,700 94,000 101,000 7,000$ Assessing agreement with Hennepin County
34 60,000 58,000 60,250 66,500 67,700 95,000 102,000 7,000$
35
36 Attorney -$
37 41600-300 Professional Services 31,000 27,000 29,000 31,000 32,000 34,000 38,000 4,000$
38 31,000 27,000 29,000 31,000 32,000 34,000 38,000 4,000$
39
40 City Charter -$
41 41000-210 Operating Supplies -$
42 41000-300 Professional Services -$
43 - - - - - - -$
44
45 Other General Government -$
49 41900-210 Operating Supplies 4,600 4,000 4,000 6,000 7,500 8,000 8,500 500$
50 41900-300 Professional Srvs 5,000 8,000 10,000 12,000 12,500 10,500 11,500 1,000$ mental health policy costs ($5,500)
51 41900-321 Telephone - -$
52 41900-360 Insurance 68,000 65,000 61,000 68,000 71,050 80,000 88,000 8,000$
53 41900-430 Misc. Banking Charges - -$
54 41900-433 Dues & Memberships 27,000 27,000 27,000 27,000 25,000 25,000 25,000 -$
64 41900-810 Refunds/Reimbursements -$
65 104,600 104,000 102,000 113,000 116,050 123,500 133,000 9,500$
66
67 City Hall Operating Expenses -$
68 41941-200 Office/Computer Supplies 6,000 3,500 3,500 3,500 3,750 4,500 4,750 250$
69 41941-201 Postage/Shipping 3,000 3,250 3,500 3,500 3,750 3,750 4,000 250$
70 41941-207 Computer / Copier Supplies - - - - - -$
71 41941-210 Operating Supplies 17,000 17,000 17,500 19,000 19,000 19,500 20,000 500$ Cintas, Zep, Adam's Pest Control, Hearing Notices.
72 41941-300 Professional Services 9,000 12,000 12,000 12,500 15,500 15,500 16,000 500$ Admin Fees (ADP), Ordinance Codification.
73 41941-321 Telephone 2,500 2,500 2,500 2,500 2,500 2,500 2,500 -$
74 41941-352 Gen. Notices Public Hearing information - - - - - -$
75 41941-364 Workers Comp Insur. ( Misc. Vol. Commissioners Staff)25 25 25 26 - -$
76 41941-380 Utilities / Outside Services 15,500 16,000 15,000 15,000 15,000 16,000 16,000 -$ Center Point, Randy's, Wright Henn Elec, Wright Henn Security.
77 41941-400 Repairs /Maintenance Bldg.12,000 12,000 12,000 16,500 16,500 19,500 19,500 -$
78 41941-430 Misc. Banking Charge - 300 300 300 300 400 400 -$
79 41941-432 Credit Card Fees - - - 750 3,750 7,000 8,000 1,000$ Increased use of credit cards
80 41941-520 Buildings & Structures 5,000 8,000 8,000 8,000 6,000 6,000 6,000 -$
81 41941-810 Refunds/Reimbursements - - - - - -$
82 70,025 74,575 74,325 81,576 86,050 94,650 97,150 2,500$
83
84 IT Technology -$
85 41951-201 Postage Shipping -$
86 41951-207 Computer / Supplies 25,550 27,500 28,500 24,500 28,000 35,000 45,500 10,500$ Annual License Renewals; Watchguard
Total City Council
Total Elections
Total Newsletter & Web
Total Assessor
Total Auditor
Total City Attorney
Total City Charter
Total Other Government
Total City Hall Operating
1
1 CITY OF CORCORAN Draft August 12, 2021
2 2021 Rev 1
3 OSA
LINE ITEM
CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
87 41951-210 Operating Supplies 1,500 9,725 10,000 10,000 11,000 15,000 16,000 1,000$ Additional copier lease
88 41951-300 Professional Supplies 21,500 26,200 30,000 52,500 75,000 85,000 95,000 10,000$ Managed Services; $5,000 increase for Watchguard (body cameras)
89 41951-530 Facility Assets 6,500 11,500 8,000 9,000 9,000 12,000 20,000 8,000$ Additional computers for new staff
90 55,050 74,925 76,500 96,000 123,000 147,000 176,500 29,500$
91
92 Engineering -$
93 43170-260 Comprehensive Plan -$
94 -$
95 43170-299 Watershed LGU - - - 10,000 7,500 10,000 10,000 -$ LGU wetland services.
96 43170-300 Professional Services 47,500 31,250 22,500 22,500 25,000 35,000 50,000 15,000$ Increased demand from projects
97 47,500 31,250 22,500 32,500 32,500 45,000 60,000 15,000$
98
99 Fire -$
100 42200-300 Professional Services 281,000 298,700 328,113 348,500 367,000 383,100 412,000 28,900$ Contract Increases (projected 7.5% increase)
101 42200-550 Motor Vehicles - -$
102 42200-580 Safety Inspections - 10,000 10,000 -$ New education/inspection program
103 281,000 298,700 328,113 348,500 367,000 393,100 422,000 28,900$
104
105 Building Inspections -$
106 42400-300 Professional Services 74,000 110,000 117,000 157,250 166,500 402,000 470,000 68,000$ 230 new home permits - Metro West only
107 42400-437 Surcharges 11,000 12,500 13,000 12,750 13,500 24,500 39,000 14,500$ State of MN only
108 85,000 122,500 130,000 170,000 180,000 426,500 509,000 82,500$
109
110 Recycling -$
111 43232-210 Operating Supplies - 3,000 3,000 4,000 3,500 3,500 3,500 -$
112 43232-300 Professional Services 6,000 6,000 6,000 6,300 8,300 9,000 10,000 1,000$ Provider to Managing Billing/Balance City Subsidy.
113 6,000 9,000 9,000 10,300 11,800 12,500 13,500 1,000$
114
115 788,855 866,880 905,493 1,020,885 1,103,406 1,455,385 1,657,385 202,000$
116
117 City Administrator -$
118 41300-100 Wages & Salaries 99,757 102,658 109,990 $112,195 $128,752 $134,888 $138,944 4,056$
119 41300-121 PERA 7,482 7,699 8,249 8,415 9,656 10,117 10,421 304$
120 41300-122 FICA / SS 6,185 6,365 6,819 6,956 7,983 8,363 8,615 252$
121 41300-126 Medicare 1,446 1,489 1,595 1,627 1,867 1,956 2,015 59$
122 41300-130 Employer Paid FSA - -$
123 41300-131 Employer Paid Health 17,643 15,409 15,983 16,721 19,487 20,407 22,448 2,041$ Life, A/D, LTD, STD, FSA/HSA, Health
124 41300-132 Medical Cafeteria Plan -$
125 41300-133 Employer Paid HSA -$
126 41300-140 Unemployment Compensation -$
127 41300-208 Training 4,000 4,350 4,500 5,000 5,000 5,500 5,500 -$
128 725$ MCMA Conference -$
129 1,900$ ICMA Conference -$
130 375$ LMC Conference -$
131 800$ Leadership Growth Group -$
132 200$ MAMA -$
133 41300-210 Operating Supplies 700 800 1,000 1,000 1,000 1,000 1,200 200$
134 41300-300 Professional Services -$
135 41300-364 Workers' Compensation 600 570 510 536 771 810 750 (60)$
136 41300-433 Dues & Memberships 1,000 1,000 1,300 1,300 1,300 1,400 1,400 -$
137 111$ MN City/County Managers -$
138 738$ ICMA -$
139 138,813 140,340 149,946 153,750 175,816 184,441 $191,293 6,852$
140
141 Administrative Staff -$
142 41400-100 Wages & Salaries 168,640 174,918 192,055 221,689 260,181 273,442 401,643 128,201$ Full year of finance manager, new HR/Communications, new intern
143 41400-110 Overtime 1,000 200 500 - 2,500 5,000 - (5,000)$
144 41400-121 PERA 12,723 13,134 13,710 16,627 19,515 20,508 30,123 9,615$
145 41400-122 FICA / SS 10,518 10,857 11,938 13,745 16,132 16,953 24,902 7,949$
146 41400-126 Medicare 2,460 2,539 2,792 3,214 3,773 3,965 5,824 1,859$
147 41400-130 Employer Paid FSA -$
148 41400-131 Employer Paid Health 52,928 46,228 50,707 53,196 64,369 75,479 115,007 39,528$ Life, A/D, LTD, STD, FSA/HSA, Health
149 41400-132 Medical Cafeteria -$
150 41400-133 Employer Paid H S A -$
151 41400-140 Unemployment Compensation -$
152 41400-208 Training 4,000 4,000 4,500 5,500 11,550 12,000 11,000 (1,000)$
153 41400-210 Operating Supplies 750 750 1,650 1,750 1,750 1,750 2,250 500$ Mileage, BYOD Policy.
154 41400-300 Professional Services 75,000 - (75,000)$ Full year of finance manager, new HR/Communications, new intern
155 41400-364 Workers' Compensation Insurance 1,400 2,275 1,600 1,680 2,071 2,205 2,205 -$
Total Fire Services
Total Building Inspections
Total IT Technology
TOTAL CITY HALL
Total City Administrator
Total Recycling
Total Engineering
2
1 CITY OF CORCORAN Draft August 12, 2021
2 2021 Rev 1
3 OSA
LINE ITEM
CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
156 41400-433 Dues & Memberships 500 500 1,000 1,050 1,150 1,250 1,750 500$
157 254,919 255,401 280,452 318,451 382,991 487,552 594,704 107,152$
158
159 Planning & Zoning -$
160 41910-100 Wages & Salaries - - - - 37,662 71,240 98,859 27,619$ Full year new Planner position, new PT admin assistant
41910-121 PERA 2,825 5,343 7,414 2,071$
161 41910-122 FICA / SS - - - - 2,335 4,417 6,129 1,712$
162 41910-126 Medicare - - - - 546 1,033 1,433 400$
41910-131 Employer Paid Health 11,367 8,884 8,884 -$
163 41910-208 Training - - - - 500 1,500 1,500 -$
164 41910-210 Operating Supplies 1,000 2,000 2,250 2,250 500 1,000 1,000 -$ Public Hearing Notices, Labels, Postage, Training.
165 41910-300 Professional Services 65,200 65,000 65,000 63,000 57,000 45,000 50,000 5,000$ Reduced consulting fees from adding a city planner.
166 41910-364 Workers' Compensation - - - - 129 370 407 37$
167 66,200 67,000 67,250 65,250 112,864 138,787 175,626 36,839$
168
169 Code Enforcement -$
170 41920-100 Wages & Salaries 59,550 62,975 82,955 68,286 70,346 - -$ Moved to Public Works
171 41920-110 Overtime 1,000 500 1,000 1,000 250 - -$
172 41920-121 PERA 4,541 4,761 5,097 5,196 5,351 - -$
173 41920-122 FICA / SS 3,754 3,935 4,213 4,296 4,423 - -$
174 41920-126 Medicare 878 920 985 1,005 1,035 - -$
175 41920-130 FSA Employer -$
176 41920-131 Health Insurance 17,643 15,409 15,983 7,754 8,474 - -$
177 41920-140 Unemployment Compensation -$
178 41920-208 Training 750 1,250 3,250 2,850 750 - -$
179 41920-210 Operating Supplies 1,000 1,000 1,500 1,000 1,000 - -$
180 41920-300 Professional Srvs - 45,500 30,000 30,000 20,000 (10,000)$ Contract Code Enforcement
181 41920-331 Vehicle Expense -$
182 41920-344 Public Hearing Notices -$
183 41920-364 Workers' Compensation 417 570 520 546 513 - -$
184 41920-417 Uniform 250 250 250 250 250 - -$
185 41920-433 Dues & Membership 100 250 250 250 150 - -$
186 89,883 91,820 116,003 137,933 122,542 30,000 20,000 (10,000)$
187
188 Employee Benefit Charges
189 43190-300 Professional Services -$
190 - - - - - -$
191
192 Transfers to/from Other Funds
193 41900-700 Transfer to other funds -$
194 49360-720 Operating Transfers -$
195 41900-700 Transfer to other funds 50,000 75,000 100,000 125,000 150,000 200,000 300,000 100,000$ CIP
196 41900-700 Transfer to other funds 10,000 60,000 90,000 120,000 125,000 20,000 - (20,000)$ City Hall Remodel
197 41900-700 Transfer to other funds - - - 15,000 - 15,000 35,000 20,000$ Transfer to stormwater fund; FEMA mapping
198 41900-700 Transfer to other funds - - - - 62,000 - 25,000 25,000$ Transfer to facility fund
199 60,000 135,000 190,000 260,000 337,000 235,000 360,000 125,000$
200 19 1,398,670 1,556,441 1,709,144 1,956,268 2,234,619 2,531,165 2,999,008 467,843$
201
202 PUBLIC WORKS
203 PERSONNEL SERVICES
204 43100-100 Full-time - Regular 305,571 396,986 483,299 482,973 500,476 620,191 920,398 300,207$ New Development & Operations Supt.; New Admin Asst.
205 43100-110 Full-time - Overtime 20,000 24,000 23,000 28,000 30,000 39,000 50,000 11,000$ 3 year average
206 43100-121 PERA 24,418 31,574 38,047 38,323 39,786 49,439 72,780 23,341$
207 43100-122 FICA / SS 20,185 26,101 31,453 31,680 32,890 40,870 60,165 19,295$
208 43100-126 Medicare 4,721 6,104 7,356 7,409 7,692 9,558 14,071 4,513$
209 43100-130 Employer Paid FSA -$
210 43100-131 Employer Paid Health 88,213 97,592 118,776 117,785 122,829 147,536 223,434 75,898$ Life, A/D, LTD, STD, FSA/HSA, Health
211 43100-132 Medical Cafeteria -$
212 43100-133 Employer Paid H S A -$
213 43100-134 Employer Paid HRA -$
214 43100-140 Unemployment Compensation - - -$
215 43100-364 Workers' Compensation Insurance 19,000 17,100 16,000 18,000 7,476 8,700 9,200 500$
216 43100-417 Uniforms 7,000 8,500 8,500 9,000 10,000 11,250 12,500 1,250$
217 21 489,108 607,957 726,431 733,170 751,149 926,544 1,362,548 436,004$
218
219 OPERATING EXPENSE
220 43100-200 Office Supplies 1,000 1,000 -$ Permit Technician needs
Total Public Works Personnel
Total Administrative Staff
Total Planning & Zoning
Total Code Enforcement
Total Employee Benefit Chgs
Total Administration
Total Transfers to/from other funds
3
1 CITY OF CORCORAN Draft August 12, 2021
2 2021 Rev 1
3 OSA
LINE ITEM
CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
221 43100-208 Training and Instruction 4,000 6,000 8,000 6,000 4,500 7,250 7,500 250$ Grader training classes; addition of Permit Technician to PW
222 43100-210 Operating Supplies 25,000 27,500 28,100 28,100 30,000 30,000 37,500 7,500$ 3 year average
223 43100-212 Motor Fuels 38,000 33,000 26,000 28,000 29,000 35,000 40,000 5,000$ 3 year average
224 43100-220 Repair/ Main. Supplies 25,000 25,000 30,000 31,000 33,000 42,000 50,000 8,000$ 3 year average
225 43100-223 Building Repair 6,500 8,000 8,000 10,000 15,000 15,000 15,000 -$ Maintenance service contracts, building maintenance costs.
226 43100-300 Professional Services 2,100 2,100 2,100 2,100 2,100 2,100 2,100 -$ Snow removal (Maple Grove)
227 43100-321 Telephone 8,000 11,500 11,500 11,500 11,500 11,500 11,500 -$
228 43100-360 Insurance - -$
229 43100-380 Utility services 28,000 14,500 15,000 19,000 20,000 20,000 21,000 1,000$
230 43100-810 Refunds/Reimbursements -$
231 43100-810 Refunds/Reimbursements - - - - - -$
232 21 136,600 127,600 128,700 135,700 145,100 163,850 185,600 21,750$
233
234 CITY OPERATING SERVICES
235 43100-222 Seal Coating 60,000 60,000 60,000 67,500 67,500 69,000 72,500 3,500$
236 43100-225 Land Scape/Ditch Maintenance 10,000 10,000 10,000 12,500 15,000 17,500 22,500 5,000$
237 43100-226 Sign Repair Material 6,000 6,100 6,100 6,100 6,500 7,000 7,500 500$
238 43100-227 Crack Filling 10,000 10,000 10,000 10,000 10,000 10,000 10,000 -$
239 43100-228 Dust Control 115,000 100,000 100,000 95,000 100,000 110,000 125,000 15,000$ Price increase
240 43100-229 Culverts 10,000 10,000 10,000 10,000 12,000 15,000 17,500 2,500$ 2022 project needs
241 43100-230 MSA Expense -$
242 43100-231 Drain Tile -$
243 43100-232 Gravel 130,000 140,000 140,000 147,500 147,500 152,500 172,500 20,000$ Price increase
244 43100-233 Asphalt/Maintenance patching 150,000 165,000 170,000 170,000 170,000 175,000 185,000 10,000$
245 43100-381 Signal Lights/street lights 4,000 4,000 4,000 4,000 10,000 10,000 10,000 -$
246 21 495,000 505,100 510,100 522,600 538,500 566,000 622,500 56,500$
247
248 PARKS PERSONNEL SERVICES
249 45200-100 Wages and Salaries 40,182 41,096 41,790 55,404 93,122 103,052 119,426 16,374$ New PT Program Coordinator
250 45200-110 Overtime - - - - - - -$
251 45200-121 PERA - - - 2,106 3,787 4,494 4,912 418$
252 45200-122 FICA / SS 2,491 2,548 2,591 3,435 5,774 6,389 7,404 1,015$
253 45200-126 Medicare 583 596 606 803 1,350 1,494 1,732 238$
254 45200-130 Employer Paid FSA -$
255 45200-131 Employer Paid Health 15,511 17,332 19,065 1,733$
256 45200-208 Training 325 325 350 400 50$ MRPA Conference, other trainings
257 45200-433 Dues and Memberships 380 380 400 500 100$ MRPA/NRPA
258 45200-364 Workers' Compensation Insurance 2,250 5,671 5,000 3,000 9,719 10,200 10,500 300$
259 45,506 49,911 49,987 65,453 129,968 143,711 163,939 20,228$
260
261 PARKS OPERATING EXPENSES
262 45200-210 Operating Supplies 15,500 16,500 16,500 47,000 22,125 25,000 27,500 2,500$
263 45200-220 Repair/ Main. Supplies - -$
264 45200-221 Maintenance Project 15,000 15,000 15,000 15,000 15,000 20,000 30,000 10,000$
265 45200-300 Professional Services - 5,000 2,500 2,500 2,500 2,500 -$
266 45200-261 Recreation Programming - - - - 26,000 25,500 40,400 14,900$ Replacement equipment, increased supply costs
267 45200-321 Telephone 700 700 700 700 700 750 800 50$
268 45200-380 Utility services 7,000 5,500 5,500 5,500 5,500 5,500 5,500 -$
269 45200-530 Improvements Other than Bldg.37,302 37,000 35,000 35,000 35,000 40,000 40,000 -$ NW Trails Snowmobile Expense Pass Through Funds Only 100-45200-33422.
270 45200-810 Refunds/Reimbursements -$
271 45200-810 Refunds/Reimbursements -$
272 75,502 74,700 77,700 105,700 106,825 119,250 146,700 27,450$
273
274 25 121,008 124,611 127,687 171,153 236,793 262,961 310,639 47,678$
275
276 Ice & Snow Removal
277 43125-210 Snow and Ice Removal 30,000 30,000 30,000 36,000 40,500 50,500 53,000 2,500$ Salt and Sand - price increase in state contract and additional streets.
278 21 30,000 30,000 30,000 36,000 40,500 50,500 53,000 2,500$
279
280 1,271,716 1,395,268 1,522,918 1,598,623 1,712,042 1,969,855 2,534,287 564,432$
281
282 POLICE
283 PERSONNEL SERVICES
284 POLICE
285 42100-100 Wages and Salaries 552,886 603,583 662,825 736,880 $760,846 $866,731 $959,398 92,667$ Sergeant added; FT Admin. Asst.
286 42100-110 Overtime 10,450 11,400 14,400 20,000 23,000 26,286 29,572 3,286$
287 42100-111 Overtime Events 12,000 12,000 12,000 12,000 12,000 12,000 (12,000)$ Pass Through Funds only 100-42100-34201/33620.
Total Public Works City Operating Services
TOTAL PUBLIC WORKS & PARKS
Total Snow & Ice
Total Parks
Total Parks Personnel
Total Parks Operating Expense
Total Public Works Operating Expense
4
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BUDGET
DIFFERENCE
2021/2022
288 42100-121 PERA 89,568 99,627 104,607 126,833 $136,552 $155,811 $172,757 16,946$
289 42100-122 FICA / SS - - -$
290 42100-126 Medicare 8,168 8,917 9,363 10,850 $11,366 $12,949 $14,345 1,396$
291 42100-130 Employer Paid FSA -$
292 42100-131 Employer Paid Health 123,498 123,276 136,501 151,227 $154,105 $185,621 $235,249 49,628$ Additional staff; $12,000 PERA Disability Requirement
293 42100-132 Medical Cafeteria -$
294 42100-133 Employer Paid H S A -$
295 42100-134 Employer Paid HRA -$
296 42100-364 Workers' Compensation 25,000 32,712 28,000 32,000 45,414 47,600 48,000 400$
297 821,570 891,515 967,696 1,089,790 1,143,283 1,306,998 $1,459,321 152,323$
298
299 PART TIME
300 42101-100 Wages and Salaries 61,000 53,560 40,602 41,969 50,003 85,011 119,020 34,009$ Increased PT officer wage, increased CSO hours
301 42101-110 Overtime - -$
302 42101-111 Overtime Events 5,000 5,000 5,000 5,000 5,000 5,000 5,000 -$ Pass Through Funds Only 100-42100-34201
303 42101-121 PERA 1,100 6,074 7,779 4,979 8,289 11,955 21,067 9,112$
304 42101-122 FICA / SS 3,000 996 1,276 2,169 3,100 5,271 4,483 (788)$
305 42101-126 Medicare 890 777 995 $1,015 $725 $1,233 $1,726 493$
306 42101-140 Unemployment Comp -$
307 70,990 66,407 55,652 55,132 67,118 108,470 151,296 42,826$
308
309 POLICE ADMINISTRATION
310 42102-100 Wages and Salaries 50,237 61,583 77,501 79,040 86,928 93,854 121,389 27,535$ Increase PT position to full-time
311 42102-110 Overtime 500 500 500 500 500 500 500 -$
312 42102-121 PERA 3,805 4,656 5,850 5,966 6,557 7,077 9,142 2,065$
313 42102-122 FICA / SS 3,146 3,849 4,836 4,931 5,421 5,850 7,557 1,707$
314 42102-126 Medicare 736 900 1,131 1,153 1,268 1,368 1,767 399$
315 42102-130 Employer Paid FSA -$
316 42102-131 Employer Paid Health 17,643 15,409 15,983 16,721 16,921 18,613 38,131 19,518$
317 42102-132 Medical Cafeteria -$
318 76,067 86,897 105,801 108,311 117,595 127,262 178,486 51,224$
319
320 SUPPLIES
321 42100-200 Office Supplies 5,000 3,600 3,600 3,600 3,600 3,600 3,600 -$
322 42100-201 Postage 250 250 250 250 250 250 250 -$
323 42100-208 Training Classes and Supplies 16,800 16,800 23,400 22,000 24,900 26,400 28,900 2,500$ Lexipol, Driving School, Training Mandates.
324 42100-209 Police Reserves Equipment 3,500 3,500 3,500 3,500 3,500 3,500 3,500 -$
325 42100-210 Operating Supplies 9,000 9,000 10,000 12,500 18,000 18,000 18,000 -$
326 42100-212 Motor Fuels 32,000 25,000 21,000 22,000 22,000 22,000 22,000 -$
327 42100-218 Investigations 350 5,350 500 1,000 1,000 1,000 1,000 -$
328 42100-417 Clothing and Uniforms 11,000 11,000 11,000 12,000 12,000 14,000 19,000 5,000$ Additional officers
329 42100-433 Dues and Memberships 1,500 1,600 1,600 1,800 1,800 2,300 2,800 500$
330 42100-810 Refunds/Reimbursements - - - - - -$
331 79,400 76,100 74,850 78,650 87,050 91,050 99,050 8,000$
332
333 CONTRACTUAL SERVICES
334 42100-220 Maintenance - Motor Vehicle 8,000 8,000 8,000 9,500 9,500 12,500 15,700 3,200$ CSO fleet addition
335 42100-223 Building Maintenance and Repairs 3,500 3,500 3,500 3,500 3,500 6,500 7,500 1,000$ Increased repairs needed
336 42100-300 Professional Services 1,500 1,500 3,000 3,000 3,000 6,200 20,400 14,200$ Leads online; DeleteMe Online Protection; annual audits; embedded social worker
337 42100-301 Prisoner - Professional Fees 8,000 8,000 8,000 8,000 8,000 8,000 6,000 (2,000)$
338 42100-304 Legal Services 27,500 27,500 27,500 27,500 27,500 27,500 25,500 (2,000)$
339 42100-321 Telephone 7,200 7,200 7,700 9,500 9,500 9,500 9,500 -$
340 42100-323 Radio Units 16,900 16,900 17,500 17,500 18,500 20,000 21,500 1,500$
341 42100-380 Utility Services / Civil Defense/Emergency Management 4,000 4,000 9,000 8,000 9,500 9,500 9,500 -$ Siren Maintenance, Emergency Management, Code Red, EM Training & Equip.
342 76,600 76,600 84,200 86,500 89,000 99,700 115,600 15,900$
343
344 20 1,124,627 1,197,519 1,288,199 1,418,383 1,504,046 1,733,480 2,003,753 270,273$
345
346
347 3,795,013 4,149,228 4,520,261 4,973,274 5,450,706 6,234,500 7,537,048 1,302,548$
348
349 Debt Service
350 Equipment Certificate Fund
351
352
353 Disbursements
Total Contractual Services
Total Police Personnel Services
Total Police Supplies
Total Police Administration
Total Part Time
COMBINED DEPARTMENT TOTAL EXPENDITURES
TOTAL POLICE
5
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CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
354 Equipment Certificate
355 Fiscal Agent Fees / Issuing Fees
356 Principal
357 Principal & Interest-2008 99,614 104,882 - - - - -$
358 Principal & Interest-2010 61,460 62,812 191,549 - - - -$
359 Principal & Interest-2012 44,035 45,964 45,438 44,914 44,389 48,904 48,077 (827)$ Pay as Cash
360 Principal & Interest-2014 50,601 53,419 52,647 52,916 52,878 -$ Council direction to call bonds early and pay off in 2020
361 Principal & Interest-2016 Equip 37,590 36,960 36,330 36,015 35,385 39,690 4,305$
362 Principal & Interest-2018 Equip 81,900 80,010 79,065 81,323 2,258$
363 Principal & Interest-2018 Debt Service 39,454 37,406 36,304 32,996 (3,308)$
364 Principal & Interest-2018 Abatement 68,250 73,500 73,500 78,750 5,250$
Principal & Interest-2020 Equip 100,905 104,475 3,570$
365 Total Principal & Interest 255,710 304,667 326,594 323,764 324,198 374,063 385,311 11,248$
366 Required 5% overage 12,786 -
367 Total 268,496 304,667 326,594 323,764 324,198 374,063 385,311 11,248$
368
369 Revenues
370 CIP Debt Levy
371 Interest
372 Sales of Assets
373 Bond Proceeds
374 Total - - - - - -
375
376 Facility Expansion (PD) #307 & #407
377 Project Costs
378 Principal
379 Principal & Interest -
380 Required 5% Overage -
381 Total - - - - - -
382
383 Facility Expansion (Public Works) 2012B
384 Principal & Interest 137,688 185,312 168,039 229,044 231,617 223,523 222,485 (1,039)$
385 Required 5% Overage 6,884 - -$
386 Total 144,572 185,312 168,039 229,044 231,617 223,523 222,485 (1,039)$
387
388 Equipment Certificate Fund # 309 & 416
389 2012 Certificates
390 Principal & Interest - - - - -
391 Required 5% overage - - - - -
392 Total - - - - - -
393
394 COMBINED DEBT SERVICE EXPENDITURES 413,068 489,979 494,633 552,808 555,815 597,586 607,795 10,210$
395
396 REVENUES 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 BUDGET
397 GENERAL FUND REVENUE
398
399 GENERAL GOVERNMENT
400 3 41900-31810 Cable Franchise Fee 40,000 43,000 45,000 53,000 53,000 53,000 53,000 -$
401 5 41900-32110 Liquor Licenses Fees 18,250 18,250 18,375 18,375 18,375 19,000 16,000 (3,000)$ One Less Licensee
402 41900-33402 Homestead Credit - - - - - -$
403 41900-33403 Mobile Homestead Credit - - - - - -$
404 7 41900-33420 AG Preserve Credit 5,000 5,000 5,000 12,000 12,000 10,000 10,000 -$
405 7 41900-33421 PERA State Aid 1,845 1,845 1,845 1,845 1,845 1,845 1,845 -$
406 7 41900-33422 Other Grants and Aid 3,000 - -$ Election aid.
407 41900-34000 Charges for Services - -$
408 10 41900-34103 Zoning / Subdivision Fees 12,000 25,000 25,000 35,000 45,000 45,000 45,000 -$
409 10 41900-34105 Copies / Maps 150 150 150 150 150 100 100 -$
410 10 41900-34107 Assessment Search 50 50 50 50 50 50 50 -$
411 10 41900-34108 TIF Administrative Fees 8,000 - - - - -$
412 41900-34110 Escrow Administrative Fees - - - - - -$
413 10 41900-34405 Clean up day Income 675 1,500 1,500 3,000 3,000 3,000 3,250 250$
414 13 41900-36200 Miscellaneous Revenue 2,500 2,500 2,500 2,500 2,500 2,500 2,500 -$
415 12 41900-36210 Interest Earnings 2,000 1,000 1,500 15,000 16,500 16,500 8,000 (8,500)$
416 13 41900-36217 Sale of Assets - - - - - -$
417 13 41900-36220 Rents / Royalties 9,840 10,800 10,800 11,620 11,620 7,000 7,000 -$ Crop Rentals
418 13 41900-36230 Donations 1,000 1,000 1,000 1,000 -$
419 41900-36233 Refunds/Reimbursements -$ 6
1 CITY OF CORCORAN Draft August 12, 2021
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CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
420 CITY PLANNER
421 10 41910-36200 Miscellaneous Revenue - - - - 9,750 16,250 16,250 -$ Billable hours from city planner (5 hours per week * 50 weeks * $65.00 per hour)
422 CODE ENFORCEMENT
423 41920-32100 Business/License Fee - - - - - -$
424 41920-34000 Charges for Services - - - - - -$
425 CITY HALL OPERATIONS
426 41941-34100 General Government - - - - - -$
427 10 41941-34101 Facility Rental 6,000 6,000 6,000 6,500 - - -$ No Longer Renting Due to Remodel
428 13 41941-36200 Miscellaneous Revenue 1,000 1,000 4,500 1,000 1,500 1,500 1,500 -$
429 PUBLIC SAFETY
430 42100-32240 Animal Licenses - - - - - -$
431 9 42100-33423 Police Town Aid 45,000 50,000 55,000 60,000 69,000 71,000 71,000 -$
432 9 42100-33424 Police Training & POST 3,700 3,700 10,300 10,300 10,300 11,900 12,500 600$
433 9 42100-33620 Other Grants and Aid/Safe & Sober 10,000 10,000 10,000 10,000 10,000 10,000 10,000 -$ Pass Through Only - Area Traffic Project (42100-111 & 42101-111).
434 5 42100-34200 Police Permits 2,000 2,000 2,000 2,000 4,000 4,000 4,000 -$
435 10 42100-34201 Police Service Charge 7,500 7,500 7,500 7,500 7,500 5,000 5,000 -$ Pass Through Only - Contractual Events (42100-111 & 42101-111).
436 10 42100-34202 Police Reports / Misc. Fees 1,000 1,000 1,000 1,000 1,000 400 400 -$
437 42100-34204 Police Training - - - - - -$
438 11 42100-35101 Fines 45,000 45,000 45,000 50,000 60,000 45,000 40,000 (5,000)$ Reduced fines anticipated
439 42100-36200 Miscellaneous Revenue - - - - - -$
440 42100-36230 Donations - - - - - -$
441 42100-36233 Refunds/Reimbursements - - - - - -$
442 BUILDING INSPECTION
443 5 42400-32210 Building Permit Fees 190,000 275,000 325,000 425,000 450,000 815,000 1,335,000 520,000$ 230 new home permits
444 PUBLIC WORKS
445 8 43100-33418 MSA Road Maint. Fund 120,000 124,000 124,000 135,000 135,000 170,000 150,000 (20,000)$ Revised MSA routes
446 10 43100-34300 Public Works Permits / Fees 3,000 3,000 3,000 3,000 4,000 5,500 5,000 (500)$ Revised with three-year average
447 10 43100-34301 Dust Control 57,500 47,500 37,500 37,500 37,500 37,500 - (37,500)$ No billing in 2022
448 43100-36100 Special Assessments - - - - - -$
449 10 43100-36200 Miscellaneous Revenue - 8,125 25,000 34,600 40,500 42,000 42,000 -$ Billable Hours for Public Works Director
450 43100-36233 Refunds/Reimbursements - - - - - -$
451 ICE & SNOW REMOVAL
452 13 43125-36200 Miscellaneous Revenue 8,000 8,000 6,000 6,000 6,000 6,000 6,000 -$
453 Engineering
454 43170-32290 Watershed LGU Revenue - - - - - -$
455 RECYCLING
456 9 43232-33610 County Recycling Grant 14,500 14,500 14,500 16,000 16,000 14,000 14,000 -$
457 10 43232-34400 Recycling Income - 2,500 2,500 2,500 3,500 5,000 5,000 -$ Provider Managing Billing.
458 43232-36200 Miscellaneous Revenue - - - - - -$
459 PARKS
460 9 45200-33422 Other State Grant 37,302 37,000 35,000 35,000 35,000 40,000 40,000 -$ Pass Through Only - Snowmobile Trail Grant.
461 10 45200-34101 Facility Rental 6,000 5,000 3,000 3,000 3,000 1,500 1,500 -$
462 10 45200-36199 Recreation Programming - - - - 56,000 58,000 59,300 1,300$ Revenue from Recreation Programming.
463 13 45200-36200 Miscellaneous Revenue 8,000 58,000 500 - -$ Revenue from Recreation Programming moved into separate revenue account
464 45200-36230 Donations - - - - - -$
465 45200-36233 Refunds/Reimbursements - - - - - -$
466 TRANSFERS TO/FROM OTHER FUNDS
467 17 49360-39200 Transfer from Other Fund 61,901 162,122 192,871 205,830 218,872 269,164 359,677 90,513$ Utility funds
468
469 TOTAL OTHER REVENUES 720,713 923,042 1,030,391 1,263,270 1,345,962 1,786,709 2,324,872 538,163$
470
471 41900-31020 Delinquent Property Taxes - - - - - -$
472 41900-31040 Fiscal Disparities - - - - - -$
473 41900-33422 Local Government Aid - - - - - -$
474 41900-31100 General Property Taxes 3,074,300 3,226,186 3,489,870 3,710,129 4,104,744 4,447,791 5,212,176 764,385$
475
476 1 TOTAL PROPERTY TAX REVENUE 3,074,300 3,226,186 3,489,870 3,710,129 4,104,744 4,447,791 5,212,176 764,385$ 17.19%
477
478 TOTAL GENERAL FUND REVENUE 3,795,013 4,149,228 4,520,261 4,973,399 5,450,706 6,234,500 7,537,048 1,302,548$
479
480 30 TOTAL DEBT SERVICE TAX LEVY 413,068 489,979 494,633 552,808 555,815 597,586 607,795 10,210$
481
482 TOTAL ALL REVENUES 4,208,081 4,639,207 5,014,894 5,526,207 6,006,521 6,832,086 8,144,843 1,312,758$
483
484 TOTAL ALL EXPENSES 4,208,080 4,639,207 5,014,894 5,526,082 6,006,521 6,832,086 8,144,843 1,312,758$
485
486
487 REVENUE - EXPENSE 0 0 (0) 125 (0) - - -$
488 7
1 CITY OF CORCORAN Draft August 12, 2021
2 2021 Rev 1
3 OSA
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CODE DESCRIPTION OF EXPENDITURE 2016 BUDGET 2017 BUDGET 2018 BUDGET 2019 BUDGET 2020 BUDGET 2021 BUDGET 2022 Budget
BUDGET
DIFFERENCE
2021/2022
489
490
491
492
493 40 TOTAL CERTIFIED LEVY (INCLUDES DEBT SERVICE)3,487,368 3,716,165 3,984,503 4,262,937 4,660,559 5,045,377 5,819,971 774,595$ 15.35%
494
495 TOTAL PROPERTY TAX LEVY 3,074,300 3,226,186 3,489,870 3,710,129 4,104,744 4,447,791 5,212,176 764,385$
496
497 TOTAL PROPERTY TAX COLLECTED - - - - - - -$
8
Preliminary Draft In-Progress as ofAugust 12, 2021
Northland Securities, Inc.
150 South Fifth Street, Suite 3300
Minneapolis, MN 55402
(800) 851-2920
Member FINRA and SIPC
Registered with SEC and MSRB
Letter of Transmittal
Introduction and Summary 1
Introduction and Summary............................................................................................................1
Study Approach ..................................................................................................................................1
Revenue Suffi ciency...........................................................................................................................2
Rate Calculations................................................................................................................................3
City Tax Rate.................................................................................................................................3
Utility Rates ..................................................................................................................................5
Organization of the Plan .................................................................................................................6
TABLE 1 - Property Tax Levy and Tax Rate................................................................................7
TABLE 2 - Projected City Taxes Payable for Example Properties......................................8
CHART 1 - Annual Change in Property Tax Levy and Rate.................................................9
CHART 2 - City Tax Capacity (Tax Base)......................................................................................9
CHART 3 - Fund Balance...............................................................................................................10
CHART 4 - Cash Balances.............................................................................................................10
CHART 5 - Water Fund Cash Balances....................................................................................11
CHART 6 - Sewer Fund Cash Balances....................................................................................11
CHART 7 - CIP Use of Funds.......................................................................................................12
CHART 8 - CIP Source of Funds.................................................................................................12
Background 13
Summary.............................................................................................................................................13
TABLE 3 - Customer Units and Water Volume Sold...........................................................14
CHART 9 - New Construction and Connection to Municipal Utilities.........................17
CHART 10 - Acres of Land Platted............................................................................................17
Capital Improvement Plan and Debt 18
Overview of Plan..............................................................................................................................18
Equipment and Vehicles.......................................................................................................18
Water Improvements.............................................................................................................18
Sewer Improvements.............................................................................................................18
Street Improvements.............................................................................................................18
Facility and Parks.....................................................................................................................19
Bond Issuance...................................................................................................................................19
TABLE 4 -Capital Improvement Plan........................................................................................21
TABLE 5 - Debt Service..................................................................................................................23
TABLE 6 - Bonds Outstanding....................................................................................................24
CHART 11 - CIP Use of Funds.....................................................................................................25
CHART 12 - CIP Source of Funds...............................................................................................25
CHART 13 - Annual Debt Service..............................................................................................26
CHART 14 - Bonds Outstanding................................................................................................26
CHART 15 - Debt Outstanding by Type..................................................................................27
CHART 16 - Bonds Outstanding Existing and New............................................................27
Financial Plans 28
Background........................................................................................................................................28
Summary of Key Factors and Assumptions...........................................................................28
Total Governmental Funds Combined ....................................................................................30
CHART 17 - Total Sources and Uses of Funds................................................................31
CHART 18 - Cash Balance and Fund Balance.................................................................31
TABLE 7 - Finance Plan............................................................................................................32
General Fund Financial Plan........................................................................................................33
Figure 2 - Tax Levy Revenue..................................................................................................33
CHART 19 - Cash Balance and Fund Balance.................................................................35
CHART 20 - Source and Use of Funds...............................................................................35
CHART 21 - % Change in Source and Use of Funds....................................................35
CHART 22 - Use of Funds by purpose ..............................................................................35
TABLE 8 - Finance Plan............................................................................................................36
Debt Service Funds Financial Plan............................................................................................37
CHART 23 - Cash Balance and Fund Balance.................................................................38
CHART 24 - Source and Use of Funds...............................................................................38
CHART 25 - % Change in Source and Use of Funds....................................................38
CHART 26 - Use of Funds by purpose ..............................................................................38
TABLE 9 - Finance Plan............................................................................................................39
Special Revenue Funds Financial Plan.....................................................................................40
TABLE 10 - Finance Plan .........................................................................................................41
Capital Projects Funds Financial Plan......................................................................................42
TABLE 11 - Finance Plan .........................................................................................................43
Capital Equipment Fund Financial Plan..................................................................................44
TABLE 12 - Finance Plan .........................................................................................................45
Facilities Fund....................................................................................................................................46
TABLE 13 - Finance Plan .........................................................................................................47
Water Fund Financial Plan............................................................................................................48
CHART 27 - Cash Balance by Purpose..............................................................................50
CHART 28 - Ending Unrestricted Net Assets..................................................................50
CHART 29 - Revenue and Expense.....................................................................................50
CHART 30 - Customers and Volume..................................................................................50
TABLE 14 - Finance Plan .........................................................................................................51
TABLE 15 - Projected Water Revenues..............................................................................53
TABLE 16 - Cash Balances......................................................................................................56
Sewer Fund Financial Plan...........................................................................................................57
CHART 31 - Cash Balance by Purpose..............................................................................59
CHART 32 - Ending Unrestricted Net Assets..................................................................59
CHART 33 - Revenue and Expense.....................................................................................59
CHART 34 - Customers and Volume..................................................................................59
TABLE 17 - Finance Plan .........................................................................................................60
TABLE 18 - Projected Water Revenues..............................................................................62
TABLE 19 - Cash Balances......................................................................................................64
Appendix 65
TABLE A - Utility Fee Schedule...................................................................................................65
TABLE B - Property Tax Levy Planned for Debt Service.....................................................67
TABLE C - Planned Staff Additions............................................................................................68
The Financial Management Plan (the “Plan”) is in-
tended to serve as a guide for the on-going fi nancial
management of the City of Corcoran (the “City”). The
Plan was fi rst prepared in year 2012 and is updated
annually.
The Plan contains proposed strategies and identifi ca-
tion of key factors and objectives to monitor with re-
spect to future fi nancial performance.
The Plan includes information on projected property
tax levies and fees and charges to fund city services,
capital improvement plans, and debt service.
The objectives of the study for the Plan are as follows:
•Revenue Suffi ciency - develop and populate a
forecasting model that will determine the level
of revenue needed to satisfy general government
and utility enterprises operations, capitalimprove-
ments, and debt service while maintaining ade-
quate reserves for future service and capital needs
of the City.
• Rate Calculations - Model projected future tax ca-
pacity tax ratesfor theCityand proposed rates and
structure for billing water and sanitary sewer ser-
vices (the “Utilities”) to meet revenue suffi ciency
objectives.
The Plan includes anticipated capital improvement for
years 2022-2026 (the “CIP”). Estimates were made by
the City as to cost and timing of projects. The actual
timing for future capital improvements will depend in
part on the population growth rate of the City.
While the specifi c timing of future improvements is
uncertain, awareness of the needed funding for proj-
ects is important when considering tax levies, rates for
fees and charges, and level of reserves for future capi-
tal.
Future development will provide increased revenue
to the City from charges for services and tax revenue.
This will include increased revenue to the Utilities,
with revenue from both development fees and usage
fees. It will also provide additional property value to
the City and potential for collecting additional prop-
erty tax revenue to pay for services.
The rate of future development and addition of cus-
tomers has been and continues to be a signifi cant vari-
able for the Plan and the projections within. The City
should continue to monitor actual development that
occurs against the anticipated rate of development
assumed in the Plan. The rate of development will
impact the projected revenues included in the Plan.
Detailed information on projected housing units is in-
cluded later in the Plan.
Study Approach
The following steps were taken as part of the Study:
•City provided historical fi nancial data along with
current budget plans and capital improvement
plans.
• City provided the assumptions for future residen-
tial units to be constructed in the City and connect-
ed to the Utilities.
• Information provided by the City was organized,
analyzed, and used to support the development of
the Plan.
• The prior year data included in the Plan is recon-
ciled with the City’s annual audited fi nancial state-
ments.
•City staff off ered input and feedback on the as-
sumptions, diff erent options for levies and rates
and desired outcomes for the Plan.
• The study did not include a review and compari-
son of the City’s tax rate and fees and charges to
other cities.
Revenue Suffi ciency
The Study evaluated the suffi ciency of revenues to
meet current and projected fi nancial requirements for
the City Funds, including the Utilities over the next
fi ve years (with a longer planning period for the Utili-
ties). The Plan determines the tax levies and rates nec-
essary in each year of the projection period to provide
revenue suffi ciency.
Moody’s Investor Service recently upgraded (May
2018) the City’s bond rating to ‘Aa3’ from ‘A1’. In do-
ing so the rating agency recognized the City’s credit
strength and strong fi nancial operations resulting in
growing reserves. The maintenance and continued rel-
ative growth of reserves through revenue suffi ciency
remains an important credit factor for the City.
The City should continue to actively manage its funds
to achieve its policy goals and to maintain suffi cient
balances within the funds to meet City needs includ-
ing the need for reserves.
The City has an adopted policy to maintain a mini-
mum balance in the General Fund equivalent to 35%
of annual expenditures. The goal of the Plan is to iden-
tify revenue suffi cient to meet closer to 50% of annual
expenditures, recognizing the need for the City to cash
fl ow its expenditures between the semi-annual tax dis-
bursements it receives from the County, among other
needs for cash balance.
The City evaluates ending fund balances at year-end
and makes decisions on the level of funds that is need-
ed and appropriate. While the Plan provides for the
General Fund to be at the 50% level, the City should
continue to consider its needs annually.
Future growth in tax capacity from new develop-
ment should provide revenue suffi ciency for the City
to maintain a constant tax rate. Future projected tax
levy in the General Fund includes revenue to support
transfers to the Capital Project Funds, while maintain-
ing ending fund balance in the General Fund in the ap-
proximate 40-50% range of current year expenditures.
The City may adjust planned staffi ng additions and
transfers to the Capital Projects Fund as needed based
on actual tax base growth and other needs that may
arise in the General Fund.
For purposes of the Plan, the revenue objective for the
Water Fund and the Sewer Fund focused on providing
revenue suffi cient to achieve projected year-end cash
balance to cover the following purposes:
• Three-months of operating expense
• Following-year debt service payments
• Following year capital acquisition (planned to be
paid from cash)
• Reserves for future capital improvements and oth-
er reserve purposes
The graphics and tables that follow in the Introduction
and Summary section of the Plan provide a summary
of key fi nancial information for the City Funds.
ȱȱȱǰȱȱĴȱȱȱȱȱ
to replace depreciated infrastructure, is an important
element for establishment of suffi cient rates for the
Utilities. The Study focused on the City’s asset man-
agement practices to maintain and expand infrastruc-
ture at future estimated costs.
ȱȱȱȱȃȱȄȱȱȱĴȱȱ
to gain a strong understanding of the expected future
costs and, maybe more importantly, their timing, and
plan for replacement of infrastructure and facilities.
Using a planned schedule for capital improvements
and the incorporation of those plans into the Study
does that. Capital improvement plans combined with
fi nancial management targets are critical element that
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Financial management targets begin with criteria for
evaluating overall fi nancial condition. For instance, do
projections show suffi cient revenues to cover planned
operating and capital improvement expenses? The
ȱȱȱĴȱȱȱȱǰȱȱ¢ȱ ȱ
much?
The Plan helps to answer these question by allocating
projected year-end cash balance to defi ned purposes.
One of the purposes is for planned capital acquisition
and reserves for future capital.
The Plan provides a second criteria to evaluate reve-
nue suffi ciency for the Utilities. The Plan sets a target
(a fl oor ) to maintain an unrestricted net position in the
Water Fund and the Sewer Fund no lower than 50% of
the subsequent year’s estimated expenditures.
The majority of revenue in the Utilities comes from
user charges, maintaining an unrestricted net position
that is equal to at least 50% of expenditures will help
to ensure that suffi cient resources are available to fund
basic functions between receipts of user charges.
The target (or fl oor ) for ending unrestricted net posi-
tion is meant to be an equivalent of the target for an
unrestricted fund balance for the City’s General Fund.
Equity is reported as a fund balance in the General
Fund and as a net asset within the Water Fund and the
Sewer Fund. Fund balance and net assets are the dif-
ference between fund assets and liabilities refl ected on
the balance sheet or statement of net assets.
Rate Calculations
The Study focused on preparing projections for future
annual tax capacity rates for the City, and reviewing
the rates for the fees and charges of the Utilities. The
Study did not include a review and analysis of other
City fees and charges, only the fees of the Utilities was
included.
City Tax Rate
Future tax levies increases are projected to be neces-
sary to fund planned expenditures and to maintain
adequate cash balances across all City funds.
A summary of the projected City tax levy amounts is
shown in the Figure 1 that follows on the next page,
along with the corresponding estimated City tax rate.
Future annual City tax rates are estimated based on
assumptions in the Plan for changes to the City’s tax
capacity from growth in the market value of proper-
ty within the City. The Plan is prepared to result in
a constant tax rate over the next fi ve years. The Plan
anticipates an increase in the City’s tax capacity for tax
collection year 2024 from a new multi-family build-
ing, which along with tax base growth from new sin-
gle family housing units is projected to help the City
achieve a constant tax rate.
The key assumptions used for the Study that impact
future City tax rates includes the following:
• Taxable market value within the City is projected
to increase by approximately 4.0% from 2021 to
2022, and by 3.0% annually between 2023-2026.
• Fiscal disparities contribution and corresponding
distribution of tax revenue are estimated to remain
constant (at current amounts) over the planning
period. The actual impact of the metro-wide fi scal
disparities program varies from year to year.
• City will increase the tax levy to support addition-
alplanned spending in the General Fund related to
growth of the community. Details on the specifi c
items, which includes staff positions, is included in
the Finance Plan section for the General Fund and
in the Appendix.
• General fund non-tax revenue is estimated to in-
crease by 1.5% and current expenditures by 3.0%.
There are no assumed major changes to non-tax
revenue.
• City estimates it will average 202 new housing
units (constructed) annually over the next decade
between 2021-2030. The Plan assumes more rapid
growth over the near term. For purposes of esti-
mating market value of property in the City, the
average home price is estimated at $490,000, infl at-
ed 3.0% annually.
• The Plan assumes new taxable market value from
the construction of new commercial property in
the City. New commercial value of $1.0 million per
year is assumed, beginning with taxes payable in
2023 (fi rst project to be constructed in 2021).
• The construction of new multi-family housing
units in southeast Corcoran is anticipated at 266
units in 2022, with fi rst taxes payable year 2024.
• For planning purposes, it is assumed the City will
issue bonds to fi nance a new municipal building
in 2026 with an estimated $10 million project cost.
The Plan anticipates that debt service will be paid
from taxes (80%), water revenues (10%) and sewer
revenues (10%). The fi nal allocation of costs will
require further review. The increase to the City’s
tax levy in year 2025 is approximately $605,000 for
payment of debt service for the project.
The table and graphics that follow provide historical
and projected City property tax levies and tax rates
along with tax capacity. A detailed break down of the
debt service levy by bond series is provided inAppen-
dix.
Utility Rates
The City currently has a two-part rate structure for
charging fees for water and sewer services, comprised
of both a fi xed and variable charges. This two-part
structure is recommended by generally accepted prac-
tices and is a practice followed by most cities within
the Twin Cities metropolitan area. This structure re-
covers a portion of system costs in a fi xed charge, rec-
ognizing that the Utilities have certain fi xed costs and
customer service costs that are incurred year-round.
These fi xed costs are incurred regardless of the level
of water usage.
Over the next fi ve years it is projected that approxi-
mately 45% of the Water Fund expenses, including de-
preciation, will be fi xed and for the Sewer Fund it is
approximately 30%. The percentages vary somewhat
from year to year. Fixed expenses as a percent of total
expenses is projected to decrease somewhat over time
as the number of customers increase and volume of
water usage grows.
For usage or metered volume-based rates, based on
the results of the Study, there are no recommended
changes in the structure. As the number of customers
increases potential changes to the structure may be
needed. Potential future proposed changes may in-
clude the following, for example:
• Establish an inclining block sanitary sewer rate
structure, to match the total of four tiers for Wa-
ter, and set the volume for each tier to refl ect sewer
customers’ usage profi les and local data.
The Plan anticipates the City adopts planned increases
to rates for water and sanitary sewer services as pro-
posed in the Plan. This includes increasing the base
fee for water services from $20.00 to $20.60 (from year
2021 to 2022) and increasing all other water fees by
3.0% annually.
For the trunk line availability charges (TLAC) the fol-
lowing is planned:
• For northeast Corcoran, the plan is to increase the
fee from $16,789 in 2021 to $17,293 in 2022, adjust-
ed by 3% annually.
• For southeast Corcoran, the plan is to increase the
fee from $7,475 in 2021 to $8,596 in 2021, with an-
nual increases of 15% from 2022-2027, and then
3.0% annual increases.
• For sewer, the plan is to increase TLAC fee by 3.0%
annually.
TheAppendix includes details on fee amounts by year
for both water and sewer services
The planned TLAC fees, and annual adjustments, are
needed for the City to fund improvements in north-
east and southeast Corcoran. The improvements in-
clude trunk watermain, booster stations, and a water
tower in northeast Corcoran estimated in total to cost
between $14.25 million.
While not anticipated, if growth from residential de-
velopment does not occur as projected, and develop-
ment fees to support the Utilities are not collected as
anticipated, the City may need to levy property taxes
to pay debt service on bonds issued to fi nance utility
system infrastructure.Attimeofissuanceofthebonds,
the City projected revenue from future development
would be suffi cient to repay the general obligation
revenue bonds (proprietary debt) issued without the
need for a tax levy. As projected in the Plan, revenue
within the Water Fund and the Sewer Fund is project-
ed to be suffi cient to meet all current and future debt
obligations.
The City should annually review its utility rates and
the block rate structure to ensure that rates and struc-
ture provide adequate revenues and cash fl ow based
on actual customers and volume activity.
Future rates should be set based on actual data and
performance, which will include impact of future de-
velopment within the City. Eff orts by customers to
conserve and reduce water consumption will have a
direct impact on revenues.
Organization of Plan
The Plan is organized into seven sections:
1. Introduction and Summary provides information
on the Study Approach, Revenue Suffi ciency, and
Rate Calculations.
2. Background provides historical and statistical con-
text for the Utilities.
3. CIP and Debt provides information on the City’s
plans for equipment, facilities, and maintaining
and expanding the water and sanitary sewer sys-
tems. This includes estimates on project costs, tim-
ing, and sources of funds. The time horizon for
the capital plan is years 2022-2026. Information on
outstanding debt obligation and debt service of the
City is included.
4. Financial Plans provides the fi nancial plans (pro
forma) for the City Funds, including the Water
Fund and the Sewer Fund. The fi nancial plans in-
clude historical, current, and projected revenues
and expenses and estimated ending cash balances.
Financial plans take into account capital improve-
ment plans, both existing and planned debt issu-
ance, and proposed rates.
5. Appendix provides additional data and graphics.
The increase in the Water
Fund and Sewer Fund Year-
End Cash Balance is planned.
The diff erence between Pro-
jected Cash Position and
Minimum Cash Position
represents the net amount of
cash projected to be available
as reserves for future capi-
tal improvements. The City
collects development fees at
ȱȱĴȱȱȱȱ
permit, use of the funds col-
lected occurs over time to pay
for fi nancing of projects.
The TLAC and Connection
charges the City will collect
as development occurs is
needed to pay for future capi-
tal improvements that are not
yet programmed in the CIP.
The improvements that have
been identifi ed, but not yet
programmed, include trunk
watermain, booster stations,
and a water tower in south-
east Corcoran estimated to
cost between $12 and $15 mil-
lion.
The City of Corcoran is located on the western edge of
the Twin Cities Metropolitan area in Hennepin Coun-
ty. The City estimates its population at approximately
6,400 residents as of 2020. Population will continue
to increase due to development of residential property
within the City. The land area for the City encompass-
es just under 36 square miles and includes area for fu-
ture residential development.
Commercial and industrial development in the City
has been limited, primarily due to the lack of mu-
nicipal water and sewer services and the absence of
major transport corridors. In 2012 the City success-
fully fi nanced and implemented a major improvement
project to fi rst bring and then expand municipal wa-
ter and sanitary sewer services to the City. The project
provided for connection to the metropolitan disposal
system. The City forecasts continued development of
both residential and commercial property.
The City’s development plan for its downtown area
provides an opportunity for additional economic de-
velopment. In recent years the City completed con-
structionofstreetimprovementsandutilityinfrastruc-
ture in the downtown area.
The table that follows provides the estimated number
of housing units along with municipal utility connec-
tions units for commercial property in the downtown
areatheCityprojectstobeaddedoverthenexttwenty-
years. The assumptions on units is an important input
to the Plan and is updated on annual basis by the City.
The City is in the process of planning for water ser-
vice to serve the northeast area of the City. The access
to water purchased from Maple Grove is limited. The
City is planning on investments for a water treatment
plant and water tower in the near term.
The City annually reviews its plans for capital acqui-
sition and improvements and updates its multi-year
plan. The CIP in the Plan provides details on costs by
year and proposed funding sources. The debt service
study, included in the Plan, provides information on
current debt service and estimated future debt.
The CIP provides an important input into preparing
the fi nancial plans for the City funds. The fund level
reports in the Financial Plans section are inclusive of
all sources and uses of funds, both operating and non-
operating, which includes capital expense. The table
that follows on page 19 provides details by project of
the City’s capital acquisition and improvement plans.
Equipment and Vehicles
Over the next fi ve years the City anticipates spend-
ing an average of approximately $950,000 per year on
equipment and vehicles capital needs. The Plan in-
cludes anticipated bonding in year 2022 and 2024 for
equipment and vehicles.
The City has been incrementally increasing tax levy in
the General Fund to support a transfer to the Equip-
ment Fund, but the rate of increase in planned spend-
ing has outpaced the planned annual tax levy support
therefore bonding will be needed to provide proceeds
for the planned purchases. Annual sale of capital as-
sets is estimated to provide approximately $75,000 for
new equipment and vehicles.
Water Improvements
Water improvements are included in the CIP for the
implementation of a water system for the northeast
area of the City estimated at $14,250,000.
The Plan anticipates the southeast area of the City will
continue to be served under terms of an agreement
with Maple Grove for purchase of municipal water
until demand passes capacity. Future improvements
in southeast Corcoran will need to be undertaken at
some point in the future.
The CIP does not include water improvement projects
that are anticipated to be constructed and fi nanced
by private development and contributed to the City.
These projects will be paid entirely by private funds
with infrastructure then contributed to the City.
Sewer Improvements
The Plan does not include any planned capital spend-
ing for sewer improvements within the next fi ve years
(2022-2026.
Street Improvements
The CIP includes street improvements for Hackamore
Road (CR116/CSAH101). The City’s share of the Hack-
amore Road improvements (project is a cooperative
project with other jurisdictions) will be funded from
a payment from the benefi ting residential developer
and special assessments to other benefi ting properties.
The CIP does not anticipate any property tax levy sup-
port for this project or other street improvement proj-
ects in the CIP. The project is anticipated to commence
in 2022 with completion in 2023.
Improvement to Gravel Roads
Council has discussed a need to establish a plan to be-
gin paving gravel roads. A dedicated revenue source
is likely needed for this to take place and should be
discussed and included in future Plans.
Facility and Parks
A future municipal building or expansion of the ex-
isting building is planned for approximately $10 mil-
lion in year 2026; this is a “placeholder” year. The Plan
anticipates that the debt on the municipal building
will be paid 80% from tax levy and 20% from water
and sewer revenues. The annual debt service expense
is included in the fi nancial plans for the Debt Service
Fund, including the transfers in of revenues from the
Water Fund and Sewer Fund, respectively. The annual
debt service is estimated at approximately $630,000 for
a $10.425 million bond issuance, which includes $10.0
million for the project construction and funds for cost
of issuance and capitalized interest fund. The annual
tax levy for debt service, beginning in year 2026 is esti-
mated at approximately $430,000.
Future Park Improvements
The City is planning for various park improvements
including City Park as well as other park planning as
outlined in the 2040 Comprehensive Plan. These im-
provements will be paid with park dedication funds
and completed as funds allow. The City has not yet
programmed but anticipates the following projects:
• Town Center Park and Linear Park
• Phase 1 of the City Park Improvement Project
• Open space park near Ravinia Development
• Open space park near Bellwether Development
• Neighborhood park near Bellwether Development
• County Road trail improvements
Bond Issuance
The City’s outstanding general obligation bonds are
rated as ‘Aa3’ by Moody’s Investors Service. The posi-
tive credit strengths include strong fi nancial opera-
tions resulting in growing reserves. The strong bond
rating means a lower cost of borrowing for the City.
The City anticipates the issuance of bonds to fi nance
certain capital improvements. The tables and graphics
that follows provide a summary of existing and future
estimated debt service payments (principal and inter-
est) and funding sources, along with a summary of
debt outstanding by year.
The annual debt service on future “new” bonds to be
issued is also included in the fi nancial plans for the
Debt Service Fund, Water Fund, and the Sewer Fund.
The preliminary estimates for debt service are based
on the following estimated new bond issues:
•Year 2022, G.O. Bonds, $1,520,000 to fi nance equip-
ment and vehicle acquisition over a 10 year term
payable from tax levy.
•Year 2022, G.O. Bonds, $14,300,000 to fi nance water
system improvements over a 25 year term payable
from net revenues of the Water Fund.
•Year 2022, G.O. Bonds, $1,105,000 to fi nance street
improvements over a 4 year term payable from
special assessments levied against benefi ting prop-
erty.
•Year 2024, G.O. Bonds, $1,820,000 to fi nance equip-
ment and vehicle acquisition over a 10 year term
payable from tax levy.
•Year 2026, G.O. Bonds $10,425,000 to fi nance mu-
nicipal buildings over a 25 year term payable from
tax levy and net revenues of the Water Fund and
the Sewer Fund. The estimated split is 80% pay-
able fromtax levy and20% payable fromthe utility
revenues.
Bond Terms
The fi nal sizing, structuring, and interest rates will
depend on project specifi cs and market conditions at
time of issuance. The amounts shown in the Plan are
preliminaryand for planning purposes only.Thebond
issuancesizesincludecapitalacquisitionandconstruc-
tion costs, cost of issuance of bonds, and capitalized
interest funds. The debt service for the new bonds is
based on the terms stated above and a conservatively
estimated 3.5% interest rate on the bonds.
Background
Financial plans have been prepared for each of the fol-
lowing type of funds:
Governmental Funds
• General Fund
• Debt Service Funds
• Special Revenue Funds
• Capital Projects Funds
Proprietary Funds
• Water Fund
• Sewer Fund
GovernmentalFunds are used to account for mosttyp-
ical municipal functions of the City. The acquisition,
use, and balances of the City’s expendable fi nancial re-
sources and the related current liabilities (except those
accounted for in Proprietary Funds), are accounted for
through the Governmental Funds.
Proprietary Funds are used to account for the City’s
ongoing municipal utility operations that are similar
to businesses found in the private sector. These funds
are considered self-supporting in that the services
rendered by them are fi nanced through user charges.
The fi nancial plans, for the Proprietary Funds, include
assets and liabilities in addition to the revenues and
expenditures. The Proprietary Funds are presented on
an accrual basis. There is a recognition of expenditures
when incurred and the subsequent amortization of
the deferred outfl ows. Revenues are recognized when
earned. There is a capitalization of certain expenses
and the subsequent depreciation of the capitalized
costs. For the Proprietary Funds there is accruals of
revenues earned and expenses incurred.
Summary of Key Factors and Assumptions
The key factors or assumptions used to develop the
fi nancial plans are as follows:
• General Fund expense budget for year 2022 and
future years are projected to be set at levels, when
combined with the debt service levies, will achieve
an estimated constant City tax rate equivalent to
the City’s tax rate for tax year 2021.
• 3.0% annual increase in operating expense for the
Governmental Funds.
• 1.5% annual increase in non-property tax revenue
for the Governmental Funds.
• Annual projected increase in property tax levies to
be set at a level suffi cient to fund cash fl ow require-
ments and to maintain suffi cient fund balance lev-
els per City.
• Fiscaldisparitiesdistributionofpropertytaxesand
contribution of property tax capacity is assumed to
be at the same levels as estimated for Pay 2021. The
actual amounts will vary by year and will impact
the projections shown in the Plan.
• Maintain a minimum balance in the General Fund
equal to approximately 50% of current expendi-
tures (which is greater than the 35% minimum per
policy), recognizing the need for cash fl ow and
contingency.
• 3.0% average annual rate increase for water ser-
vices (base and usage fees, and connection charge),
with the exception of TLAC for southeast Corco-
ran, which is planned at 15.0% average annual rate
increase between years 2022-2027. The annual rate
increases is approximate and refl ects the antici-
pated cost increases for the Water Fund. The high-
er increase for the water TLAC (for property in
southeast Corcoran) refl ects the cost of providing
the needed infrastructure to this area over time,
distributed across property that will be developed
in this area.
• 2.0% and 3.0% average annual increase in sanitary
sewer fees for connection and TLAC, respectively.
• 1.0% annual investment income rate for all City
Funds.
• Maintain cash in the Water Fund and Sewer Fund
suffi cient to achieve projected year-end cash bal-
ance to cover the following purposes:
-Three-months of operating expense
-Following-year debt service payments
-Following year capital acquisition (planned
to be paid from cash)
-Reserves for future capital improvements
and other reserve purposes
• Maintain positive balances in all other City funds
and amounts suffi cient to meet specifi c cash fl ow
requirements of the funds.
Expense
Personnel and other operating costs overall have been
and are projected to remain stable in the near term
with planned increases in the future to address the de-
mands of a growing community.
The fi nancial plans anticipate includes projected staff -
ing increases in the General Fund. These increases are
detailed in the General Fund fi nancial plan that fol-
lows and in the Appendix. A total of 32.05 new FTEs
are planned to be added between years 2022-2026.
Transfers To and From Other Funds
Transfers between funds for future years include the
following:
• Transfers from the Water Fund and Sewer Fund to
the General Fund to pay an allocated share of op-
erating costs.
• Transfer from the Water Fund and Sewer Fund to
the Debt Service Fund to pay an allocated share
of the debt services for the 2016A Bonds and the
bonds anticipated to be issued in 2025 to pay for
municipal building improvements.
• The Plan includes annual transfers of cash (tax
levy) from the General Fund to the Equipment
Fund, Facilities Fund, and Storm Water Fund for
capital projects. The annual transfer amount may
be adjusted as needed to achieve the planned con-
stant tax rate. The actual annual future increases
in the City’s tax capacity will drive what amount
may be available for transfer, among other factors
such asother operationalpressures(or need for tax
levy).
The table that follows provides total sources and uses
of funds for the following Governmental Funds com-
bined. Individual fi nancial plans are then provided for
each of the following fi ve funds:
• General Fund
• Debt Service Funds
• Special Revenue Funds
• Capital Projects Fund
• Capital Equipment Fund
The City’s annual fi nancial statements includes a
break-down of individual funds for the Debt Service
Fund, Special Revenue Fund, and Capital Projects
Fund. For example, the City maintains separate debt
service funds for each bond series issued. For capital
projects, the City establishes a specifi c “Capital Proj-
ects Fund” for each individual project. For purposes of
the Plan, this level of detail is not included.
Revenue
Annual source of funds from non-property tax levy
sources has been stable for the City and is expected to
remain so in the future. The City did not receive local
government aid (LGA) from the State in 2021 and does
not anticipate receipt in 2022 or future years.
Property tax levy increases will be needed to pay for
increased operating costs and debt service related to
planned capital improvements.
The General Fund is the primary fund used by the
City. This fund is used to record all resource infl ows
and outfl ows that are not associated with special-pur-
pose funds. The activities being paid for through the
General Fund constitute the core administrative and
operational tasks of the City.
Revenue
Annual source of non-tax revenue for the General
Fund has been stable and is projected to remain stable.
Intergovernmental revenue payments for municipal
state aid for street maintenance provides the single
largest source of non-tax revenue to the General Fund.
The City does not receive local government aid (LGA)
from the State. The second largest source of non-tax
revenue is charges for services and the next largest is
fi nes and forfeitures.
Tax Levy Revenue
Property tax levy revenue is estimated to increase each
year. In addition to funding general city operations,
transfers to other funds for facility, equipment, and
other capital improvements, property tax levy pro-
vides revenue to meet fund balance goals for contin-
gency.
Figure 2 provides the projected General Fund prop-
erty tax levy by year, along with the annual percent
increase.
Non-Tax Revenue
Non-tax revenue includes charges for service, license
and permits, intergovernmental, transfers in from the
utility funds, among other sources of non-tax revenue.
The fi nancial plan for the General Fund is based on the
following key assumptions for non-tax revenues:
• Non-tax revenues increase of 1.5% annually.
• Annual investment income rate of 1.0%.
The City reported an increase in Intergovernmental
Revenue in 2020 due to receipt of $445,428 of Coro-
navirus Aid, Relieve, and Economic Security Funds
(CARES). Future federal funding related to Coronavi-
rus aid is not programmed in the City budget or in-
cluded in the Plan.
Expense
The General Fund is used to account for the expense
of providing general government services for the City.
The largest use of funds in current expenditures is for
the cost of personnel, including salary and wages, and
benefi ts. Other costs including operating materials and
supplies, equipment, and other professional services.
The fi nancial plan for the General Fund is based on the
following key assumptions:
• Current expenditures (includes personnel costs)
increase by 3.0% annually for infl ation.
•Increase in staff (FTE) and position changes are
planned (see Appendix for further details by po-
sition), with a portion of the costs to be allocated
to the Water and Sewer Funds for certain posi-
tions. The FTEs that may be paid either in full or
part from the General Fund, depending on avail-
able revenues, are listed below. The dollar amount
show below is equal to the estimated portion of the
cost of the FTEs to be paid from the General Fund.
- 6.3 FTE, $586,000 in 2022
- 8.0 FTE, $771,000 in 2023
- 5.0 FTE, $540,000 in 2024
- 6.25 FTE, $645,000 in 2025
- 3.5 FTE, $375,000 in 2026
Transfers To and From Other Funds
The Water Fund and the Sewer Fund transfer revenue
in to the General Fund to pay an allocated share of
operating costs. This transfer is projected to continue
with annual infl ationary adjustments.
Transfers out to other funds includes the following:
• Increase in transfer out to the Equipment Fund to
pay for a portion of planned equipment and ve-
hicle acquisitions as included in the CIP.
• Increase in transfer out to the Storm Water Fund to
begin to build a balance of funds for project costs.
• Plan anticipates beginning to transfer out funds
from the General Fund to the Capital Projects
Funds, including the Facilities Fund, to the extent
annual revenue is available in excess of annual
expenditures, after fi rst maintaining a minimum
fund balance in the General Fund equal to 40-50%
of current expenditures.
Fund Balance
The maintenance of the City’s reserves, including
growing fund balance (reserves), is important to the
maintaining the City’s credit rating on its outstanding
bonds.
Fund balance for the General Fund is projected to re-
main at approximately 40-50% of expenditures. City
policy requires a minimum of 35%. Fund balance in
excess of the minimum is a credit positive with respect
to maintaining the City’s credit rating from Moody’s.
Revenue
The Debt Service Funds include the following source
of funds: special assessments, interest income, trans-
fers in from other funds, property tax levy, and bond
proceeds for any capitalized interest funds.
General obligation equipment certifi cates will be re-
paid from property tax levy. Prior year and future pro-
jected tax levy amounts for repayment of equipment
certifi cates are included in the Plan.
The Plan anticipates the issuance of general obligation
bonds in 2022, 2024, and 2026 that will be accounted
for in the Debt Service Funds. Future debt will be
supported by a combination of tax levy, special as-
sessments, and transfers in of revenue from the Water
Fund and the Sewer Fund.
Expense
The use of funds is for the payment of debt, including
principal and interest payments.
Transfers From Other Funds
The City records special assessment revenue collected
on the downtown improvement project, fi nanced with
the issuance of the 2016A Bonds, directly into the debt
service fund. Special assessment revenue from assess-
ments levied to fi nance connection and TLAC for water
and sanitary sewer services is to be deposited directly
in the Water and the Sewer Fund, respectively. The
Water and Sanitary Sewer Funds transfer revenue to
the debt service fund for the 2016A Bonds to cover the
utility portion of the 2016A Bonds. The special assess-
ment revenue deposited into the debt service funds is
pledged to the payment of the 2016A Bonds.
The Debt Service Fund includes the combined funds
used to account for all of the City’s governmental debt
service.
At the end of 2020, the City reported total general obli-
gationbondspayable(reportedasGovernmentalDebt)
of $11,650,000. The Water Fund and the Sewer Fund
also report debt outstanding, which is accounted for
separately as a liability for Proprietary Funds. At the
end of 2020, the City reported total general obligation
bonds payable in the proprietary funds of $3,645,000.
In addition to bonds outstanding, the Water Fund re-
ported $309,158 in outstanding notes payable to Maple
Grove for connections to the water system.
The year-end cash balance in the Debt Service Funds
fl uctuates due to the timing of collection of revenue,
for example tax levy, in the year prior to debt service
payments coming due.
The City is required to have cash available in the re-
spective debt service funds equal to 105% of the debt
service payments coming due for a specifi c bond se-
ries. For example, the year-end cash balance includes
cash from collection of special assessments and tax
levy in current year to pay the following February 1st
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the County in June and December of each year. The
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ŗ ȱȱ¢ȱȱȱȱ¡ȱĴȱȱȱ
available to cover the February 1st payments.
The fi nancial plan for the Special Revenue Funds as in-
cluded in the Plan provides sources and uses of funds
on a combined basis for the following special revenue
funds. The funds included are as follows:
• Fund 201 Reserve Donation
• Fund 202 Police Donation
• Fund 204 Firearms Safety
• Fund 205 DWI Forfeiture
• Fund 206 Drug Forfeiture
• Fund 207 Truck Safety
• Fund 208 Lawful Gambling
• Fund 209 Emergency Sirens
Revenue
The source of funds for the special revenue funds
come from donations, charges for services, and other
miscellaneous revenue sources which are generally
restricted for the purpose they were collected. There
is no property tax levy that is recorded to the special
revenue funds.
Expense
The use of funds is restricted for the purpose of the
funds collected.
Transfers To and From Other Funds
There are no transfers.
ments to other benefi ting properties. The issuance of
bonds for Hackamore Road is shown in year 2023, to
be supported 100% by special assessments payable
over the planned 4 year term of the bonds.
Expense
The projected use of funds is for capital projects as in-
cluded in the CIP. This includes construction of street
and facility improvements.
Transfers To and From Other Funds
The fi nancial plan does not include annual transfers
to and from other funds for the Capital Projects Funds
(which as included in the Plan does not include the Fa-
cilityFund and the EquipmentFund, which are shown
separately in the Plan). The City Council may approve
annual budget transfers to and from the Capital Proj-
ects Funds based on available resources..
The fi nancial plan for the Capital Projects Funds, as in-
cluded in the Plan, provides sources and uses of funds
on a combined basis for the following City’s capital
projects funds. The funds included are as follows:
• Fund 305 Asphalt Maintenance
• Fund 411 Public Works Facility
• Fund 415 Park Capital
• Fund 419 Hackamore Upgrade
• Fund 420 Wetland Restoration
• Fund 422 Downtown Improvements
• Fund 425 Bellwether
• Fund 427 Gleason/66th Parkway
For purposes of the Plan, the Capital Equipment Fund
and the new Facilities Fund the City plans to estab-
lish, are not included as part of the fi nancial plan for
the Capital Projects Funds. Separate fi nancial plans are
provided.
Revenue
The majority of the source of funds comes from charg-
es for service, special assessments, investment income,
intergovernmental, and bond proceeds.
Year 2020 included collection of the remaining rev-
enue from developer payment for Hackamore Road
improvements. Hackamore Road will be funded from
a combination of developer payments in the total esti-
mated amount of $1.14 million collected over multiple
years, and bond proceeds supported by special assess-
The City uses the Capital Equipment Fund to record
all revenue and expense related to the acquisition of
equipment and vehicles.
Revenue
The source of revenue has historically come from the
issuance of bonds. Beginning in year 2015, the City
implemented a plan to begin to transition to fund
equipment and vehicleacquisition on apay-gobasis to
eliminate the need to borrow (issue bonds) and incur
interest expense.
The Plan assumes the City will continue to transfer
cash (approximately $250,000) from the General Fund
to the Equipment Fund to allow the City to limit issu-
ance of debt for these types of purchases.
Other sources of funds includes sale of capital assets,
estimated at $75,000 annually and investment income.
The Plan anticipates issuance of general obligation
bonds (equipment certifi cates) for equipment and ve-
hicle acquisitions in years 2022 and 2024.
Expense
The projected use of funds will be for capital projects
as included in the CIP.
Transfers To and From Other Funds
The transfer in shown in the fi nancial plan comes from
the transfer of cash (tax levy) from the General Fund.
The City established this fund to record transactions
related to improvements to City Hall in 2020 and a
new municipal building or signifi cant expansion in
2026.
Revenue
The source of revenue is anticipated to come from
a combination of transfer in of cash from other City
funds and a current tax levy. After completion of the
projects, the current tax levy in the Facilities Fund will
discontinue and be used to pay for anticipated debt
service expense on bonds to be issued for the new mu-
nicipal building or signifi cant expansion of the exist-
ing building.
Bond proceeds are anticipated in 2026 to pay for the
new municipal building or expansion. The placehold-
er amount included in the Plan is $10.0 million.
Expense
The projected use of funds will be to pay for capital
project spending, including planning for the improve-
ments.
Transfers To and From Other Funds
Transfer in of cash has come from the General Fund
and other funds to pay for facility improvement costs.
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customer units added is shown in Table 2. The pro-
jected development will provide increasing revenue to
the Water Fund.
The Plan estimates annual rate adjustments of 3.0%.
The actual increase that may be needed in the future
will depend on growth in customers. The rate increase
forTLACfor property locatedin southeast Corcoranis
estimated at 15.0% annually between years 2022-2027.
This is due to projected cost of build-out of infrastruc-
ture in this area of the City.
At the estimated level of rate increases outlined above,
the Water Fund is projected to maintain adequate cash
balance over the planning period. For purposes of the
Plan, the revenue objective focused on providing rev-
enue suffi cient to achieve projected year-end cash bal-
ance to cover the following purposes:
• Three-months of operating expense
• Following-year debt service payments
• Following year capital acquisition (planned to be
paid from cash)
• Reserves for future capital improvements and oth-
er reserve purposes
The CIP anticipates the issuance bonds in 2022 to fi -
nance water system improvements in the northeast
area of the City.
Expense
The use of funds is to pay for the operation and capital
improvements, and related debt service, for providing
municipal water services, including depreciation of
capital assets.
The Water Fund was established as a Proprietary Fund
for the accounting for costs of providing municipal
water services to residents and businesses.
The Water Fund is considered self-supporting in that
the services rendered are fi nanced through user charg-
es.
The fi nancial plan includes assets and liabilities in ad-
dition to the revenues and expenditures. The Water
Fund is presented on an accrual basis. There is a recog-
nition of expenditures when incurred and the subse-
quent amortization of the deferred outfl ows. Revenues
are recognized when earned. There is a capitalization
of certain expenses and the subsequent depreciation
of the capitalized costs. There is accruals of revenues
earned and expenses incurred.
Revenue
The source of funds are charges for services, special
assessments, developer fees and payments, and bond
proceeds.
The schedule of planned fees and charges is included
in the Appendix.
Future growth from development, which impacts the
projection of operating and non-operating revenue for
the Water Fund, is assumed to be the following over
the next decade:
Ȭȱ¢ȱŜŖŖȱȱĴȱȱ ȱŘŖŘŗ ȬŘŖŘŜ
- 1,520 new customer units to be added between
2021-2026
The City has an agreement with the City of Maple
Grove which providesforpaymentto MapleGrovefor
water connections and distribution.
Approximately half of the Water Fund expenses are
estimated to be fi xed costs, this amount fl uctuates
somewhat from year to year.
The City anticipates the addition of 12 FTE over the
next fi ve years paid entirely or in part by the Water
Fund. The cost of the FTE’s is included in the fi nancial
plan.
Annual debt service payments on bonds issued to fi -
nance water improvements are supported by net rev-
enues of the Water Fund. The Water Fund pays a por-
tion of the debt on the 2014B Bonds. The portion of
the 2014B Bonds payable from water revenues is re-
ported as a liability of the Water Fund. As payments
on the debt are made the liability in the Water Fund is
reduced. Interest is recorded as an expense.
In addition to this liability, the Water Fund transfers
revenue to the Governmental Debt Service Funds
to pay a portion of the 2016A Bonds. Beginning in
year 2026, the Sewer Fund is also projected to begin
transferring funds to pay a portion of the debt on the
planned bonds for municipal facilities improvements.
TheWater Fund reports adebt obligation for the Notes
payable to the City of Maple Grove for water connec-
tion charges. As payment is made on the Notes the
liability in the Water Fund is reduced. The interest
expense on the Note issued in 2014 is recorded as an
expense in the Water Fund. There is no interest pay-
able on the Note issued in 2016.
Depreciation is reported as an expense and is adjusted
foranticipatedannualdepreciablecapitalacquisitions.
New capital is depreciated over a 55 year term in the
Plan.
Transfers To and From Other Funds
The Water Fund transfers funds annually to the Gen-
eral Fund to pay for operational support.
Special assessment revenue from assessments levied
to fi nance connection fees and TLAC for water ser-
vices are deposited directly in the Water Fund. As
noted above, the Water Fund transfers revenue to the
City’sGovernmentalDebtService Funds for the2016A
Bonds to cover the water utility portion of the 2016A
Bonds. The Plan anticipates the Water Fund will pay
10% of the debt service on planned bonds to be issued
in 2026 for municipal facilities improvements.
ȱȱȱȱȱĴȱȱȱ¢ȱȱ
customer units added is shown in Table 2. The pro-
jected development will provide increasing revenue to
the Water Fund.
The Plan estimates annual rate adjustments of 2.0%
for both base and usage fees and connection fees. The
sewer TLAC is estimated to increase by 3.0% annually.
At the estimated level of rate increases outlined above,
the Sewer Fund is projected to maintain adequate cash
balance over the planning period. For purposes of the
Plan, the revenue objective for the Sewer Fund focused
on providing revenue suffi cient to achieve projected
year-end cash balanceto coverthe following purposes:
• Three-months of operating expense
• Following-year debt service payments
• Following year capital acquisition (planned to be
paid from cash)
• Reserves for future capital improvements and oth-
er reserve purposes
There is no anticipated future bonding for sanitary im-
provements at this time.
Use of Funds
The use of funds is to pay for the operation and capital
improvements, and related debt service, for providing
municipal sewer services, including depreciation of
capital assets.
Approximately 40% of the Sewer Fund expenses are
estimated to be fi xed costs, this amount fl uctuates
somewhat from year to year.
The Metropolitan Council (MC) charges the City a fee
TheSewerFund was established asaProprietaryFund
for the accounting for costs of providing municipal
water services to residents and businesses.
The Sewer Fund is considered self-supporting in that
the services rendered are fi nanced through user charg-
es.
The fi nancial plan includes assets and liabilities in ad-
dition to the revenues and expenditures. The Sewer
Fund is presented on an accrual basis. There is a recog-
nition of expenditures when incurred and the subse-
quent amortization of the deferred outfl ows. Revenues
are recognized when earned. There is a capitalization
of certain expenses and the subsequent depreciation
of the capitalized costs. There is accruals of revenues
earned and expenses incurred.
Source of Funds
The source of funds is charges for services, special as-
sessments, developer fees and payments, and bond
proceeds.
The schedule of planned fees and charges is included
in the Appendix.
Future growth from development, which impacts the
projection of operating and non-operating revenue for
the Water Fund, is assumed to be the following over
the next decade:
Ȭȱ¢ȱŜŖŖȱȱĴȱȱ ȱŘŖŘŗ ȬŘŖŘŜ
- 1,520 new customer units to be added between
2021-2026
for the regionalcollection and treatmentof wastewater
(disposal charges). The City does not have any control
over this operating expense. Future charges payable to
the MC are projected based on total estimated sanitary
sewer volume reported to the MCES with an infl ation-
ary adjustment.
The City anticipates the addition of 12 FTE over the
next fi ve years paid entirely or in part by the Water
Fund. The cost of the FTE’s is included in the fi nancial
plan.
Annual debt service payments on bonds issued to fi -
nance sewer related improvements are supported by
net revenues of the Sewer Fund. The Sewer Fund pays
a portion of the debt on the 2014B Bonds. The portion
of the 2014B Bonds payable from sewer revenues is re-
ported as a liability of the Sewer Fund. In addition to
this liability, the Sewer Fund transfers revenue to the
Governmental Debt Service Funds to pay a portion of
the 2016A Bonds. Beginning in year 2026, the Sewer
Fund is also projected to begin transferring funds to
pay aportion ofthedebton theplannedbonds for mu-
nicipal facilities improvements.
Depreciation is reported as an expense and is adjusted
foranticipatedannualdepreciablecapitalacquisitions.
New capital is depreciated over a 55 year term in the
Plan.
The City is planning for capital acquisition of $6.2 mil-
lion in 2029 for North Sewer Connection Project. The
plan is to use cash to pay for this project.
Transfers To and From Other Funds
The Sewer Fund transfers funds annually to the Gen-
eral Fund to pay for operational support.
Special assessment revenue from assessments levied
to fi nance connection fees and TLAC for sewer servic-
es are deposited directly in the Sewer Fund. The Sewer
Fund transfers revenue to the City’s Governmental
Debt Service Funds for the 2016A Bonds to cover the
sewer utility portion of the 2016A Bonds. The Plan
anticipates the Sewer Fund will pay 10% of the debt
service on planned bonds to be issued in 2026 for mu-
nicipal facilities improvements.
Northland Securities, Inc.
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