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HomeMy WebLinkAbout3b Page Elected and Appointed Officials 4 Introduction Overview Location 6 Community Profile 7 Organizational Structure 13 Budget Structure Description of City Funds and Accounting Structure 14 Relationships between Departments and Funds 17 Financial and Budget Policies 18 2019 Budget Development Process and Calendar 23 Budget Overview Property Tax Levy Information 24 Budgetary Summary for All Appropriated Fund Types 25 General Fund Fund Balance Discussion 28 Schedule of Revenues, Expenditures, and Changes in Fund Balance 29 Schedule of Revenues General Property Taxes 30 Licenses and Permits 31 Intergovernmental 32 Charges for Services 33 Court Fines, Investment Income, Miscellaneous, and Other Financing 35 Department/Program Budget Descriptions and Expenditures General Government Mayor and Council 36 Committees and Commissions 38 City Administration 39 City Clerk 41 Legal Counsel 43 Planning 44 Community and Economic Development 46 Inspections 48 General Government Facilities 50 Finance 52 Information Systems 54 Human Resources 56 Insurance 58 CITY OF LAKEVILLE, MINNESOTA 2019 Adopted Budget Table of Contents 1 (continued) Page General Fund (continued) Public Safety Police 59 Fire 62 Public Works Engineering 64 Construction Services 66 Streets 68 Parks and Recreation Parks 70 Recreation 72 Heritage Center 74 Arts Center 75 Special Revenue Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances 78 Communications Fund 80 Economic Development Fund 83 Debt Service Funds Description 86 Debt Financing and Obligations 87 Legal Debt Limits 88 Credit Rating 88 Debt Issuance 89 Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances 90 General Obligation Debt Fund 92 General Obligation Special Assessments Fund 93 State-Aid Street Fund 94 Tax Increment Fund 95 Water Revenue Fund 96 Arena Revenue Fund 97 HRA Lease Revenue Fund 98 Combined Schedule of Governmental Debt Service Requirements 99 Capital Projects Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances 102 Municipal State Aid Street Fund 104 Pavement Management Fund 106 CITY OF LAKEVILLE, MINNESOTA 2019 Adopted Budget Table of Contents 2 Page Capital Projects Funds (continued) Improvement Construction Fund 108 Storm Water Infrastructure Fund 111 Water Fund 113 Sanitary Sewer Fund 115 Park Dedication Fund 116 Park Improvement Fund 118 Trail Improvement Fund 120 Tax Increment Fund 122 Tax Abatement Fund 123 Building Fund 124 Equipment Fund 126 Enterprise Funds Liquor Fund 129 Utility Fund Overall 132 Water Operation 136 Sanitary Sewer Operation 138 Street Light Operation 140 Environmental Resources 142 Internal Service Fund Municipal Reserves Fund 146 Appendices Number of City Employees (Full Time Equivalent)148 Table of Contents CITY OF LAKEVILLE, MINNESOTA 2019 Adopted Budget (continued) 3 CITY OF LAKEVILLE, MINNESTOA OPERATING AND CAPITAL IMPROVEMENT PLAN BUDGET FISCAL YEAR 2019 Elected Officials Mayor Douglas P. Anderson Council Member Bart Davis Council Member Luke Hellier Council Member Colleen Ratzlaff LaBeau Council Member Brian Wheeler Appointed Officials City Administrator Justin Miller Finance Director/Treasurer Jerilyn Erickson City Clerk Charlene Friedges Police Chief Jeffrey Long Fire Chief Michael Meyer Interim Public Works Director Neil Normandin Parks and Recreation Director John Hennen Planning Director Daryl Morey Community and Economic Development Director David Olson City Engineer Zach Johnson Liquor Director Brenda Visnovec Human Resources Manager Tammy Schutta 4 Introduction 5 6 CITY OF LAKEVILLE, MINNESOTA Community Profile Community Description The City of Lakeville is a suburban community located approximately 20 minutes south of the Minneapolis–Saint Paul metropolitan area within Dakota County. The City has a land area of 38 square miles and serves a community with a population of 61,993 residents based on a recent estimate by the Metropolitan Council. The population of 61,993 is 6,039 or 10.8 percent over the 2010 Federal Census of 55,954. History Back in 1853, Captain William B. Dodd directed construction of a road connecting the military forts in St. Paul and the southern forts in St. Peter and Mankato. That road was later named Dodd Road. In 1855, 250 acres were platted at the halfway point along that route by J.J. Brackett, who used the road to transport travelers and suppliers. This midway point, near beautiful Prairie Lake, was called Lakeville. A settlement was soon established and a post office was constructed to serve the community. Conveniently located, Lakeville soon grew to include a general store, two hotels, a boarding house, a blacksmith shop, a saloon, and a shoemaker shop. In 1858, Lakeville Township was officially formed, encompassing the rural farming areas surrounding the Lakeville settlement. A variety of ethnic groups settled in the area, including immigrants from Ireland, Scotland, England, and the Scandinavian countries. When the railroad came through in 1869, railroad officials were unable to purchase the land adjacent to the existing settlement. So, the railroad proceeded to buy 20 acres in Lakeville Township, just east of the existing settlement, and named the area Fairfield. It wasn’t long before local businesses moved the short distance to Fairfield where the railroad came through. The first Lakeville settlement site was soon abandoned. In 1878 the Fairfield site established its own government and officially became the Village of Lakeville. In 1889, the Village Council appropriated $1,000 for anyone who would start a creamery to serve the community. In 1890 a creamery was started by a group of farmers from the Lakeville area. In 1891 the Village Council again offered a financial incentive to encourage development - $1,500 for a mill. By 1892, the Claro Mill, located by the railroad tracks and 208th Street, was up and running. By 1900 the village had grown to a population of 373, and voters approved a bond issue to build a new engine house, lock up, and Village Hall. In 1901 the building opened, complete with a bell tower and bell used to summon people to fight fires. In 1967, Lakeville Township and the Village of Lakeville merged to form the City of Lakeville. Since then, Lakeville has continued to grow into the dynamic suburban community of today, where government, residents, and businesses continue to work together. Founded by hard-working pioneers, Lakeville government today still maintains a commitment to well-planned growth and development designed to enhance the community. 7 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) Growth Management The City has been and is expected to continue to be one of the fastest growing cities in Minnesota. Federal Census 55,954  63,626  50,000 52,000 54,000 56,000 58,000 60,000 62,000 64,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Population Estimated Actual The Lakeville City Council created a Strategic Growth Management Task Force in 1992. Its goal was to develop strategies regarding the rate, location and types of development that would generate fiscal stability while preserving and enhancing the City’s quality of life and services. The City Council reconvened the Strategic Growth Task Force in 1998 for the purpose of making both short and long-term recommendations or suggestions on strategies relating to how the rate, location and type of residential and commercial/industrial growth can generate fiscal stability and preserve or enhance the quality of services, while minimizing any adverse impacts on City systems and taxpayers. In December 2010, the City Council approved the 2011-2013 Strategic Plan for Economic Development. The Plan served as a guide for the work of the Economic Development Commission (EDC) and Economic Development Departmental staff to achieve Lakeville’s economic development objectives. The 2014-2016 Strategic Plan for Economic Development, the eighth plan prepared by the EDC since 1995, was approved by the City Council in November 2013. Six Strategic priorities were identified. Based on their priorities, key outcome indicators and strategic initiatives were developed. The 2017-2019 plan was approved by the City Council in March, 2017. 8 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) The Envision Lakeville report presents a set of community values and a list of strategic priorities for guiding the implementation of the key initiatives outlined in the report over the next 25 years. Vision Statement: “We envision a thriving, multi-generational community where families, friends and neighbors connect, live, learn, work and play. Great schools; a diverse local economy; exceptional parks, trails, and recreational opportunities; vibrant social and cultural institutions; safe neighborhoods; and responsive and cost-effective public services – together create a place we are proud to call home.” Community Values:  Diversified Economic Development  Good Value for Public Services  Safety Throughout the Community  Design That Connects the Community  High Quality Education  A Home for All Ages and Stages of Life  A Sense of Community and Belonging  Access to a Multitude of Natural Amenities and Recreational Opportunities Strategic Priorities  Increase economic sustainability  Support a high quality education  Develop a community of choice  Cultivate a sense of community  Provide services that add value 9 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) City of Lakeville 2008 actual land use composition and 2030 projection is as follows1: Land Use 2008 Actual 2030 Projection  Single family residential 20.8% 27.6%  Townhomes, condominiums 2.2% 10.2%  Rural agriculture/residential 36.6% 12.0%  Commercial/industrial 7.0% 13.2%  Parks and open space 15.0% 16.0%  Public right-of-ways 13.4% 13.4%  Public and semi-public 3.9% 3.8%  Multifamily residential 0.1% 3.0%  Manufactured housing 1.0% 0.8% City of Lakeville demographic and economic statistics with select unemployment rate comparisons to Dakota County, State of Minnesota, and the United States for the last ten years are as follows: State Labor Labor of Minn. Year Population2 Force Rate Force Rate Rate 2008 54,328 30,471 5.6% 229,716 6.1% 6.8% 2009 55,772 30,727 6.4% 231,391 6.9% 7.4% 2010 55,954 30,782 6.0% 230,247 6.6% 6.9% 2011 56,534 31,237 4.8% 232,257 5.2% 5.7% 2012 57,048 31,221 4.5% 231,902 4.9% 5.4% 2013 57,789 32,879 3.6% 230,160 4.0% 4.6% 2014 59,361 33,493 2.9% 231,538 3.2% 3.6% 2015 59,991 33,876 2.7% 234,299 3.1% 3.7% 2016 60,965 33,793 3.0% 232,091 3.4% 4.1% 2017 61,993 34,911 2.5% 239,356 2.7% 3.3% Dakota CountyCity of Lakeville Labor Force Unemployment Rate3 Source: 1 City of Lakeville 2010 Comprehensive Plan. 2 Metropolitan Council as of April 1st of each year, (except for year 2010 Federal Census). 3 U.S. Department of Commerce Bureau of Economic Analysis as of December 31, 2017. *Not seasonally adjusted, information is not available. 10 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) Organization The City’s governing body consists of a mayor and four council members, all elected at large. The mayor serves a two-year term of office and council members serve overlapping four-year terms. The present mayor and council members are: Expiration of Term Douglas P. Anderson Mayor December 31, 2018 Bart Davis Council Member December 31, 2018 Luke Hellier Council Member December 31, 2020 Colleen Ratzlaff LaBeau Council Member December 31, 2018 Brian Wheeler Council Member December 31, 2020 The City Administrator is responsible for the daily management of City business and the administration of policy as directed by the Council. Mr. Justin Miller is the City Administrator and has served in this capacity since December 2014. Mr. Miller has 12 years of experience in local government as a city administrator. Services Lakeville provides a full range of services. City functions include general government administration, police and fire protection, street maintenance, engineering, planning and zoning, parks and recreation, and community and economic development services. The City also operates two Enterprise Funds for three off-sale liquor stores and a water, sanitary sewer, street light and environmental resources utility. The three liquor stores are strategically located adjacent to major highways collectively represent the largest municipal liquor operation in Minnesota. The City’s Police Department consists of 59 full-time officers and 25 volunteer police reservists. The Fire Department has four stations and is served by 87 trained volunteers. The City has a fire rating of 3 for insurance purposes. This results in a significant reduction in fire insurance premiums for commercial and industrial buildings and apartments. Additional City facilities include an Arts Center, Heritage Center, 63 park properties (which include 43 playgrounds), 19 conservation areas and seven greenways, three municipal swimming beaches, 11 outdoor ice rinks which are fully boarded, three indoor ice rinks, approximately 108 miles of paved trails and 76 miles of sidewalks. The City provides water and sanitary sewer facilities to a majority of its residential areas. The City’s present water system includes 19 wells, 3 reservoirs, 6 water storage facilities with a total capacity of 11.85 million gallons and 8 pressure reducing stations. The City’s water treatment plant has a production capacity of 26.50 million gallons of water per day. The Metropolitan Council Environmental Service (MCES) is responsible for treatment and disposal of sanitary sewer effluent. 11 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) Major employers located in the City of Lakeville Employer Number of Employees Product/Service Independent School District #194 1,373 Elementary & secondary schools Hearthside Food Solutions 620 Food service contractors Schmitty & Sons 550 School & Charter bus service TreeHouse Private Brands 540 Food manufacturing Post Holdings 450 Cereal production Menasha Corporation 406 Corrugated & solid fiber box mfg. BTD Manufacturing 327 Metal manufacturing Imperial Plastics, Inc 260 Plastics material & resin mfg. Super Target 259 Retail City of Lakeville 258 City government Source: City of Lakeville, Minnesota Ten of the Largest Taxpayers in the City of Lakeville Taxpayer Type of Business Taxable Net Tax Capacity Value Minnegasco, Inc. Utility 424,836$ Southfork Apartments LLC Apartments 419,687 Dakota Electric Association Utility 378,216 Lakeville 2004, LLC Commercial 316,194 Inland Argonne Village LLC Retail 310,276 Heritage Commons, LLC Retail 283,674 Fulford Group, LLC Agriculture 283,244 Hy-Vee Inc.Commercial 280,504 Walker Highview Hills, LLC Apartments 261,781 Target Corporation Retail 255,408 Source: Dakota County Auditor and Treasurer’s Office 2017/2018 Taxable Net Tax Capacity 12 CITY OF LAKEVILLE, MINNESOTA Organizational Structure December 31, 2018 13 DESCRIPTION OF CITY FUNDS AND ACCOUNTING STRUCTURE The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The City’s fiscal year is the calendar year. Governmental Fund Types Budgets are appropriated for the following governmental funds through which functions of the City are financed: General Fund The general fund is the operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds The special revenue funds are used to account for the proceeds of specific revenue sources that are designated or legally restricted to expenditures for specified purposes. Special revenue funds utilized by the City include the following: Communications Economic development Debt Service Funds The debt service funds are used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs not funded by proprietary fund type operations. Debt service funds utilized by the City include the following: General Obligation (G.O.) G.O. improvement Tax increment State-aid Street Water revenue Arena revenue HRA lease revenue Capital Projects Funds The capital projects funds are used to account for financial resources to be used for the acquisition of equipment, construction of major capital facilities and infrastructure, or other long-term projects. The City prepares a 5-year capital improvement plan and adopts the first year of the plan. Once the budget is adopted, the individual capital appropriations do not lapse. In budgeting capital projects funds, the City assumes that all budgeted amounts will be spent on the indicated projects within the fiscal year or shortly thereafter. 14 DESCRIPTION OF CITY FUNDS AND ACCOUNTING STRUCTURE Governmental Fund Types (continued) Capital Projects Funds (continued) As such, appropriations for uncompleted capital projects are not available for re- appropriation in subsequent years. Capital projects funds utilized by the City include the following: Municipal state aid Pavement management Improvement construction Storm water infrastructure Water Sanitary sewer Park dedication Park improvement Trail improvement Tax increment Tax abatement Building Equipment Proprietary Fund Types Budgets are appropriated for the following proprietary funds through which functions of the City’s proprietary activities are funded primarily through retail sales and user charges. Enterprise Funds The enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business – where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are to be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Internal Service Fund The internal service funds are used to account for the financing of goods or services provided by one City department to other City departments. The City utilizes the municipal reserves fund as an internal service fund. 15 DESCRIPTION OF CITY FUNDS AND ACCOUNTING STRUCTURE MAJOR FUNDS Major funds are classified according to generally accepted accounting principles as those funds having any one of their total assets, liabilities, revenues or expenditures/expenses equal to or greater than 10% of either total of governmental fund types or proprietary fund types and 5% of the aggregated total for both governmental funds and enterprise funds. Governmental Proprietary Governmental Proprietary General X Special Revenue Communication X Economic Development X Debt Service General Obligation X G.O. Improvement X Tax Increment X State-Aid Street X Water Revenue X Arena Revenue X HRA Lease Revenue X Capital Projects Municipal State Aid Street X Pavement Management X Improvement Construction X Storm Water Infrastructure X Water X Sanitary Sewer X Park Dedication X Park Improvement X Trail Improvement X Tax Increment X Tax Abatement X Building X Equipment X Enterprise Liquor X Utility X Internal Service Municipal Reserves X Major Funds Non-Major Funds Fund 16 CITY OF LAKEVILLE, MINNESOTA Relationships Between Departments and Funds December 31, 2018 Community General and Government Economic Public Parks and Off-Sale Funds Admin. Development Finance Police Fire Works Recreation Liquor General Fund XXXXXXX Special Revenue Funds: Communications X Economic Development X Debt Service Funds:X Capital Projects Funds: Municipal State-aid X Pavement Mgmt.X Improvement Const.X Storm Water Infrastructure X Water X Sanitary Sewer X Park Dedication X Trail Improvement X Tax Increment X X Tax Abatement X Building X X X X X X Equipment X X X X Enterprise Funds: Liquor X Utility X Internal Service Fund: Municipal Reserves X 17 FINANCIAL AND BUDGET POLICIES These policies provide guidelines for the fiscal administration of the City. The budget for the City of Lakeville serves as a comprehensive, rational guide for financial and programmatic decision-making and operations management throughout each fiscal year. The budget is intended to be not only a financial plan but also a performance plan linked to the strategic goals established by the City Council and outlined in the Strategic Budget Goals and Initiatives. Accounting, Auditing and Financial Reporting The financial reporting and budgeting systems of the City are organized on a fund basis. A fund is a fiscal and accounting entity with a self-balancing set of accounts. Funds are the control structures that ensure that public monies are spent only for those purposes authorized and within the amounts authorized. Funds are established to account for the different types of activities and legal restrictions that are associated with a particular government function.  An independent audit will be performed annually.  The City will produce comprehensive annual financial reports in accordance with Generally Accepted Accounting Principles (GAAP).  The City will endeavor to maintain the GFOA Certificate of Excellence in Financial Reporting. Budgetary Basis of Accounting Governmental fund budgets are on a modified accrual basis of accounting consistent with generally accepted accounting principles. Under the modified accrual basis, revenues are recognized when they are susceptible to accrual (i.e., when they become measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Under the modified accrual basis, expenditures are generally recognized when the liability is incurred, except for principal and interest on general long-term debt, which is recognized when due. Governmental fund budgets include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Proprietary fund budgets are on an accrual basis of accounting consistent with generally accepted accounting principles except for loans, loan payments, capital expenses, and depreciation, which are budgeted on a cash basis. The focus of accrual accounting is primarily upon the determination of net income and the maintenance of capital. Therefore, included within these funds are all assets and liabilities associated with the fund’s operations. Revenues are recognized when earned and expenses are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt or payment of cash may take place in another accounting period. Expenses are recognized in the accounting period in which the liability is incurred, which also includes depreciation. For budgetary control purposes, the City also appropriates capital acquisitions for the proprietary funds. Proprietary fund budgets include the Enterprise Liquor Fund, Utility Fund and the Internal Service Municipal Reserves Fund. A budget is not adopted for the City’s Fiduciary Agency Fund. 18 FINANCIAL AND BUDGET POLICIES (continued) The City’s audited financial statement uses the modified accrual basis of accounting for all governmental funds (at the fund level), and uses the accrual basis of accounting for all proprietary funds. Budget Development The City’s operating budget policy sets forth guidance with respect to balanced operating budgets, with an overriding goal of achieving structural balance over a longer-term period, while recognizing that in certain periods, revenues and expenditures may not be equal. A balanced budget for the General Fund is defined as revenues and other sources equal to or exceeding operating expenditures and other uses. The budget will provide for adequate maintenance of capital facilities and equipment and for their orderly replacement. The adopted budget will take into consideration the coordinated development of the capital improvement plan with the development of the operating budget. Operating costs associated with new capital improvements will be projected and included in future operating budget forecasts. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues whenever reasonably possible. Budget amounts are as originally adopted or as amended by City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is at the total expenditures level for the General Fund and Special Revenue Funds. The City Administrator has authorization to expend funds in excess of the appropriation for individual line items. Balanced budgets for the proprietary enterprise funds are defined as providing sufficient revenues to support the operations of those funds, without subsidy from the General Fund or property taxes. Charges from the proprietary internal service funds shall be sufficient to support such activities. In addition to operating expenses, enterprise funds shall be budgeted to provide for replacement costs of property, plant, and equipment, if appropriate, when establishing rates and charges for services. The operating budget will describe the major goals to be achieved and the services and programs to be delivered for the level of funding provided. Where possible the City will integrate performance measurement and productivity indicators with the budget. Budgeted expenditure appropriations lapse at year-end. Supplementary appropriations can be carried forward to the following year if approved by the City Council. Budget Amendment Process Budgets that require amending for reasons of a routine nature or special circumstances are amended by the passage of a resolution approved by the City Council. Amendments of a routine nature are typically approved in December of the current fiscal year while amendments due to special circumstances or unexpected events such as emergencies are authorized at the earliest possible City Council meeting date. 19 FINANCIAL AND BUDGET POLICIES (continued) Revenue Policies Revenue policy elements include:  The City will project its annual revenues realistically, yet conservatively for budget purposes.  The City will endeavor to maintain a diversified and stable revenue system to shelter it from annual fluctuations in any one revenue source. All existing and potential revenue sources will be reexamined annually.  New sources of non-property-tax revenue should be actively explored at all times.  Where appropriate and not contrary to accepted public policy or statutes, emphasis will be directed toward full cost recovery through user fees. User fees and cost allocation formulas will be updated periodically (annually if needed).  Ongoing, the City will review the full cost of activities supported by user fees to identify the impact of inflation and other factors. The fees along with the resulting net property tax costs will be reviewed with the City Council during the budget process. Sensitivity to market rates will also be considered in setting fees.  Intergovernmental grant requests are subject to fiscal review before the application is submitted. This review is to ensure that the grants do not create an obligation for unfunded expenditures by the City relating to the grant’s purpose and to provide an overall budgetary review of grant proposals. Investments  Investments will be in conformance with the City of Lakeville’s Investment Policy. All investments will address safety, liquidity, and yield. All cash balances during the year are invested in securities permitted by State Statute and the Investment Policy.  It is the City’s policy to invest all available monies at competitive interest rates, coordinated with projections of the City’s operating and program cash flow needs. Interest earned from investment of available funds will be distributed to the funds annually based on each fund’s average monthly cash balance for the year. Capital Improvement Budgets  Capital outlay expenditures result in the acquisition of fixed capital assets that have a useful life of greater than one year. They are tangible in nature in that the physical substance does not materially change its form through use.  The City will adopt a five-year capital improvement plan and update it annually.  The City will coordinate development of the capital improvement plan with the development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.  The City will project its equipment replacement and maintenance needs for the next five years and will update this projection each year. From this projection, a maintenance and replacement schedule will be developed and included in the operating budget. In addition, 20 FINANCIAL AND BUDGET POLICIES (continued) the City will maintain all its assets at a level adequate to protect the City’s capital investment and to minimize future maintenance and replacement costs.  The City staff will identify the estimated costs and potential funding sources, including the consideration of joint ventures with other cities, for each capital project proposal before it is submitted to the City Council for approval.  The process will include an evaluation of effective financing for each project.  Budget balances appropriated in Capital Projects Funds are designated for specific projects and are carried forward as available for expenditure until the project is complete or the balance is transferred to other eligible projects. Debt The City’s debt policy provides guidance to ensure that long-term debt is utilized appropriately and in a fiscally prudent manner. Elements of the policy include:  Limiting long-term borrowing to capital improvements or other long-term projects which cannot, and appropriately should not, be financed from current revenues.  Final maturity of bonds and notes should not exceed the expected useful life of the underlying project for which it is being issued.  Where possible, the City will endeavor to pledge special assessments, State-aid or other non- tax revenues to debt service payments.  Debt will not be used to finance current operations.  State of Minnesota Statutes limits the legal debt obligations to 3% of the City’s taxable market value. 21 FINANCIAL AND BUDGET POLICIES (continued) Fund Balance Fund balance or net assets are terms used to define the difference between a fund’s assets and its liabilities. Fund balance is used in governmental fund types and net assets are used in proprietary fund types. The City’s General Fund unrestricted fund balance, designated for working capital as of the end of the year, should equal 40% to 50% of the next year’s budgeted expenditures. Fund balance may be used for the following:  Provide flexibility if State law significantly limits the City’s taxing and spending powers. This could include legislation regarding levy limits, property tax freezes, levy referendum requirements, etc.  Provide flexibility if the State eliminates or reduces State revenue including fire pension aid, police pension aid, aid for streets, or PERA pension aid.  Provide some protection for future funding needs of the capital improvement plan including possible liquor operations legislation.  Support the City’s bond rating.  Cover expenses created by natural disaster including flood, fire, or tornadoes and protect against other unforeseen expenditures and any other items.  Cover a General Fund deficit when actual revenues are less than expenditures and to allow for a reasonable degree of error in budget forecasting. For budget purposes only the fund balance for the General Fund excludes the nonspendable, restricted and committed fund balance classifications. The fund balance policy protects the City in the event of temporary revenue shortfalls or unpredicted expenditures and provides time to react to permanent changes in the City’s operating environment. 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% YE 2015 YE 2016 YE 2017 Projected YE 2018Projected YE 2019 General Fund Fund Balance Target Range 22 2019 BUDGET DEVELOPMENT PROCESS AND CALENDAR State Statutes, local ordinances, and the City’s budget development policy prescribe the process of budget review and adoption for the City of Lakeville. The laws require public input in the budget process, including the publishing of a budget summary in the local media. Public input is also available at the public meetings at which budget information is discussed. The following is a calendar for the 2019 budget process: May 2018  City Administrator directs staff to prepare their budget based on Council goals and objectives.  Finance Department distributes budget preparation information to all departments.  The five year Capital Improvement Plan is developed under the guidance and direction of the City Administrator June/July 2018  Proposed budgets are submitted to the City Administrator and Finance Department.  Budget meetings are held with Department Directors and budget preparers.  Finance Department reviews budget requests and prepares a proposed budget.  City Administrator reviews proposed budget and directs revisions based on budget requests and revenue estimates.  City Council receives a draft of the Capital Improvement Plan and provides comments and direction. August 2018  City Council work session on tax legislation, General Fund budget history, budget requests, debt, property tax levy, and potential tax impacts.  Staff reviews proposed budget and makes revisions as directed by the City Council. September 2018  City Council approval of preliminary budget and property tax levy on September 17th.  Preliminary property tax levy certified to Dakota County by September 30th. October 2018  Planning Commission reviews the Capital Improvement Plan for compliance with the Comprehensive Plan.  City Council holds public hearing on the proposed Capital Improvement Plan and Adopts Plan.  City Council work session to review Liquor and Utility Fund budgets. November 2018  City Council work session to review changes to the proposed budget.  Dakota County sends a notice to taxpayers indicating their property tax and the date of each taxing jurisdiction’s budget hearing. December 2018  City Council holds a “Truth in Taxation” public hearing on the final budget and final property tax levy on December 3rd.  After listening to public comment, the City Council closes the public hearing.  City Council adopts the final budget and final property tax levy on December 3rd.  Final property tax levy certified to Dakota County by December 28th. 23 PROPERTY TAXES Tax Levy The adopted 2019 tax levy is $29,948,890 which is a $1,947,340 (6.95%) increase from the 2018 tax levy. The tax levy increase is primarily the result of debt service ($1,608,402) and increased costs due to growth in the City for General Fund operations ($1,264,688). The tax levy for debt service increased as a result of using unspent construction fund bond proceeds to pay debt service payments in 2018. The adopted 2019 tax levy is as follows: Levy Increase/ (Decrease) % General Fund 21,344,070 1,264,688 6.30% Street Reconstruction - (50,000) -100.00% Pavement Management Fund 1,100,000 (91,550) -7.68% Building Fund - (400,000) -100.00% Equipment Fund 252,000 (273,000) -52.00% Park Improvement Fund 175,000 - 0.00% Trail Improvement Fund - (111,200) -100.00% Debt Service Funds 7,077,820 1,608,402 29.41% Total 29,948,890$ 1,947,340$ 6.95% Tax Levy - Summary 2019 The tax levy for street reconstruction debt service will be a factor for tax levy increases in 2020 and future years. Benefited property owners are specially assessed for 40% of the typical residential street reconstruction; the remaining 60% of street reconstruction costs is financed with property tax levies. General Obligation Improvement bonds are issued to finance the projects with special assessments and property tax levies pledged to the repayment of the debt. 24 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 26,828,843$ 27,977,754$ 27,982,334$ 29,932,247$ Tax increment 572,352 564,406 551,314 686,497 Licenses and permits 3,988,190 3,075,355 3,624,015 3,078,338 Intergovernmental 3,944,828 4,137,899 4,068,896 6,742,161 Charges for services 22,960,521 21,290,291 23,011,071 22,321,217 Court fines 392,514 425,000 331,000 346,000 Special assessments 2,812,587 1,727,423 1,624,963 2,112,355 Investment income 688,959 436,368 518,391 518,051 Donations 9,479,444 1,295,000 1,385,681 1,197,500 Miscellaneous 1,177,583 1,445,414 1,363,519 1,522,331 Gross profit 3,578,269 3,696,362 3,715,383 3,777,278 Total revenues 76,424,090 66,071,272 68,176,567 72,233,975 Expenditures and expenses General government 5,835,915 7,222,727 7,104,062 6,931,261 Public safety 12,215,659 13,322,405 13,106,724 13,663,225 Public works 4,240,756 4,896,479 4,634,303 4,744,244 Parks and recreation 3,767,646 3,992,379 3,952,111 4,178,823 Other (contingency)- (43,090) - 79,466 Debt service 13,641,392 11,926,979 12,018,863 12,424,314 Capital outlay 17,871,849 26,256,328 23,116,937 27,694,230 Operating expenses 17,043,688 19,682,402 20,698,411 21,877,677 Total expenditures and expenses 74,616,905 87,256,609 84,631,411 91,593,240 Other financing sources (uses) Transfer from other funds 8,400,675 5,332,675 5,882,254 4,390,112 Transfer to other funds (8,400,675) (5,332,675) (5,882,254) (4,390,112) Disposal of assets (17,728) 1,809,351 1,565,332 (20,000) Issuance of debt 9,732,171 11,007,698 8,411,683 13,108,089 Refunding bonds issued 2,255,000 - 3,115,000 - Payment on refunded bonds called (11,185,000) (1,740,000) (5,060,000) - Premium on bonds issued 1,309,907 - 283,652 - Total other financing sources (uses)2,094,350 11,077,049 8,315,667 13,088,089 Net change in fund balance and net position 3,901,535 (10,108,288) (8,139,177) (6,271,176) Fund balance and net position, January 1 213,586,238 200,424,240 217,487,773 209,348,596 Fund balance and net position, December 31 217,487,773$ 190,315,952$ 209,348,596$ 203,077,420$ Enterprise capital outlay acquisitions 404,546$ 256,567$ 130,886$ 199,053$ Enterprise bond proceeds 1,665,000$ 1,066,190$ 445,000$ 1,430,000$ Enterprise debt principal 190,000$ 380,000$ 380,000$ 480,000$ CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for All Appropriated Fund Types Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances and Net Assets For the Year Ending December 31, 2019 25 General Special Debt CapitalInternal ServiceFundRevenueServiceProjectsLiquorUtilityMunicipal Res.TotalRevenuesGeneral property taxes21,327,427$ -$ 7,077,820$ 1,527,000$ -$ -$ -$ 29,932,247$ Tax increment- - 404,000 282,497 - - - 686,497 Licenses and permits2,390,498 687,840 - - - - - 3,078,338 Intergovernmental989,590 516 731,339 4,740,892 3,900 275,924 - 6,742,161 Charges for services2,734,249 57,948 292,100 4,524,213 - 14,264,978 447,729 22,321,217 Court fines346,000 - - - - - - 346,000 Special assessments- - 1,858,235 254,120 - - - 2,112,355 Investment income120,000 2,237 91,237 216,066 19,110 66,431 2,970 518,051 Donations- - - 97,500 - 1,100,000 - 1,197,500 Miscellaneous47,163 - - 1,240,522 2,816 231,830 - 1,522,331 Gross profit- - - - 3,777,278 - - 3,777,278 Total revenues27,954,927 748,541 10,454,731 12,882,810 3,803,104 15,939,163 450,699 72,233,975 Expenditures and expensesGeneral government6,131,151 800,110 - - - - - 6,931,261 Public safety13,663,225 - - - - - - 13,663,225 Public works4,744,244 - - - - - - 4,744,244 Parks and recreation4,178,823 - - - - - - 4,178,823 Other (contingency)79,466 - - - - - - 79,466 Debt service- - 12,098,800 - - 325,514 - 12,424,314 Capital outlay- 59,500 - 27,634,730 - - - 27,694,230 Operating expenses- - - - 2,988,241 18,343,187 546,249 21,877,677 Total expenditures and expenses28,796,909 859,610 12,098,800 27,634,730 2,988,241 18,668,701 546,249 91,593,240 Other financing sources (uses)Transfer from other funds766,482 140,242 1,814,784 1,619,914 - 48,690 - 4,390,112 Transfer to other funds(630,000) (80,866) - (1,193,785) (1,335,968) (1,099,493) (50,000) (4,390,112) Disposal of assets- - - - - (20,000) - (20,000) Issuance of debt- - - 13,108,089 - - - 13,108,089 Total other financing sources (uses)136,482 59,376 1,814,784 13,534,218 (1,335,968) (1,070,803) (50,000) 13,088,089 Net change in fund balance and net position (705,500) (51,693) 170,715 (1,217,702) (521,105) (3,800,341) (145,550) (6,271,176) Fund balance and net position, January 114,970,310 516,699 17,246,322 32,611,074 5,957,645 137,452,644 593,902 209,348,596 Fund balance and net position, December 3114,264,810$ 465,006$ 17,417,037$ 31,393,372$ 5,436,540$ 133,652,303$ 448,352$ 203,077,420$ Enterprise capital outlay acquisitions-$ -$ -$ -$ 79,785$ 119,268$ -$ 199,053$ Enterprise bond proceeds-$ -$ -$ -$ -$ 1,430,000$ -$ 1,430,000$ Enterprise debt principal-$ -$ -$ -$ -$ 480,000$ -$ 480,000$ For a complete discussion of changes in fund balances and net assets, and percentages, see individual fund type sections.EnterpriseGovernmental FundsProprietary FundsCITY OF LAKEVILLE, MINNESOTABudgetary Summary for Appropriated Fund TypesCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances and Net AssetsFor the Year Ending December 31, 20192019 Adopted Budget26 General Fund The General Fund accounts for all revenues and expenditures necessary to provide a full range of services, including general government administration, community and economic development, public safety, public works, and parks and recreation. 27 CITY OF LAKEVILLE, MINNESOTA General Fund Fund Balance Discussion The Fund Balance Policy states “The City will endeavor to maintain an unrestricted (committed, assigned and unassigned) fund balance in the General Fund of an amount not less than 40% and not greater than 50% of the next year’s budgeted expenditures of the General Fund.” The fund balance represents the amount of funds required to operate during the first six months of the year. The City’s most significant revenue sources – taxes and intergovernmental revenue – do not provide appreciable revenues until the second half of the year. A healthy financial position also allows the City to avoid volatility in tax rates; allows for the adequate consistent funding of services, repairs and unexpected costs; and can be a factor in determining the City’s bond rating and resulting interest costs. 2019 Adopted Budget Revenues and other financing sources 28,721,409$ Expenditures and other financing uses 29,426,909 Net increase/(decrease) (705,500) Fund balance, January 1 14,970,310 Fund balance, December 31 14,264,810$ Adj. fund balance, Dec 31(Net of Restricted)13,150,435$ Ratio: Fund balance to next year's expenditures 44.3% The preliminary 2019 budget includes the use of reserves for one-time or long-term purchases as follows: Park Improvement Fund 150,000$ Equipment Fund Equipment replacement 350,000 Police - Body worn cameras 74,000 Police - In squad video 56,000 Park Maintenance-2018 projects carried over 42,500 Zoning ordinance updates 33,000 705,500$ Use of Fund Balance 28 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget Revenues (Amount) (Percent) (Amount) (Percent) General property taxes 18,967,562$ 20,055,586$ 20,055,586$ 20,060,167$ 21,327,427$ 1,271,841$ 6.3% 1,267,260$ 6.3% Licenses and permits 3,306,526 2,356,882 2,386,882 2,939,597 2,390,498 3,616 0.2% (549,099) -18.7% Intergovernmental 1,143,174 1,005,921 1,041,887 1,114,566 989,590 (52,297) -5.0% (124,976) -11.2% Charges for services 2,733,938 2,926,300 3,139,050 3,273,049 2,734,249 (404,801) -12.9% (538,800) -16.5% Court fines 392,514 425,000 425,000 331,000 346,000 (79,000) -18.6% 15,000 4.5% Investment income 116,686 90,071 90,071 108,000 120,000 29,929 33.2% 12,000 11.1% Miscellaneous 75,639 47,303 57,303 68,333 47,163 (10,140) -17.7%(21,170) -31.0% Total revenues 26,736,039 26,907,063 27,195,779 27,894,712 27,954,927 759,148 2.8%60,215 0.2% Expenditures General government Mayor and council 97,636 107,230 107,230 99,467 113,250 6,020 5.6% 13,783 13.9% Committees and commissions 93,156 87,600 97,600 93,718 68,218 (29,382) -30.1% (25,500) -27.2% City administration 407,945 478,570 478,570 478,413 477,506 (1,064) -0.2% (907) -0.2% City clerk 136,540 201,157 215,157 208,412 148,586 (66,571) -30.9% (59,826) -28.7% Legal counsel 77,936 80,000 80,000 78,296 81,000 1,000 1.3% 2,704 3.5% Planning 513,016 585,768 585,768 584,833 580,515 (5,253) -0.9% (4,318) -0.7% Community and econ. development 310,486 366,222 388,122 380,724 375,237 (12,885) -3.3% (5,487) -1.4% Inspections 1,166,972 1,225,953 1,255,953 1,233,038 1,273,544 17,591 1.4% 40,506 3.3% General government facilities 512,854 557,962 569,862 572,346 607,324 37,462 6.6% 34,978 6.1% Finance 738,472 781,534 781,534 780,120 804,429 22,895 2.9% 24,309 3.1% Information technology 541,210 673,236 673,236 667,261 788,545 115,309 17.1%121,284 18.2% Human resources 460,502 511,685 523,685 527,906 527,997 4,312 0.8% 91 0.0% Insurance 285,000 285,000 425,000 425,000 285,000 (140,000) -32.9% (140,000) -32.9% Public safety - 0% Police 10,398,139 11,259,374 11,432,212 11,225,440 11,628,288 196,076 1.7%402,848 3.6% Fire 1,817,520 1,855,127 1,890,193 1,881,284 2,034,937 144,744 7.7%153,653 8.2% Public works - 0% Engineering 802,194 974,588 974,588 859,429 881,757 (92,831) -9.5% 22,328 2.6% Construction services 473,480 587,152 587,152 497,083 573,870 (13,282) -2.3% 76,787 15.4% Streets 2,994,968 3,194,298 3,363,298 3,306,350 3,288,617 (74,681) -2.2% (17,733) -0.5% Parks and recreation - 0% Parks 2,471,209 2,643,982 2,643,982 2,604,956 2,744,963 100,981 3.8%140,007 5.4% Recreation 653,443 700,028 709,778 709,786 745,137 35,359 5.0% 35,351 5.0% Heritage center 114,983 129,549 129,549 128,307 138,674 9,125 7.0% 10,367 8.1% Arts center 539,879 510,370 518,370 518,362 550,049 31,679 6.1% 31,687 6.1% Other - (43,090) (43,090) - 79,466 122,556 -284.4%79,466 0% Total expenditures 25,607,540 27,753,295 28,387,749 27,860,531 28,796,909 409,160 1.4%936,378 3.4% Excess (deficiency) of revenues over expenditures 1,128,499 (846,232) (1,191,970) 34,181 (841,982) 349,988 -29.4%(876,163) -2563.3% Other financing sources (uses) Transfer from other funds 782,654 765,232 765,232 765,232 766,482 1,250 0.2% 1,250 0.2% Transfer to other funds (1,858,730) (660,864) (958,026) (958,026) (630,000) 328,026 -34.2%328,026 -34.2% Total other financing sources (uses) (1,076,076) 104,368 (192,794) (192,794) 136,482 329,276 -170.8%329,276 -170.8% Net change in fund balance 52,423 (741,864) (1,384,764) (158,613) (705,500) 679,264 -49.1% (546,887) 344.8% Fund balance, January 1 15,076,500 14,288,353 15,128,923 15,128,923 14,970,310 (158,613) -1.0%(158,613) -1.0% Committed Fund Balance - - - - - - 0%- 0% Fund balance, December 31 15,128,923$ 13,546,489$ 13,744,159$ 14,970,310$ 14,264,810$ 520,651$ 3.8%(705,500) -4.7% Adj Fund Balance, Dec 31 (net of restricted)14,214,548$ 12,850,659$ 13,048,329$ 13,855,935$ 13,150,435$ Ratio: Fund balance to CY expenditures 54.8%46.3%46.0%49.7%45.7% Ratio: Fund balance to NY expenditures 51.0%44.6%45.3%48.1%44.3% 2018 Amended Budget 2018 Estimate CITY OF LAKEVILLE, MINNESOTA General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ending December 31, 2019 Change from Change from 29 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget General property taxes Ad valorem taxes - current 15,969,830$ 17,001,286$ 17,001,286$ 17,001,286$ 18,162,309$ 1,161,023$ 6.8% 1,161,023 6.8% Ad valorem taxes - delinquent 174,173 110,000 110,000 110,000 130,000 20,000 18.2% 20,000 18.2% Fiscal disparities 2,727,192 2,877,909 2,877,909 2,877,909 2,968,727 90,818 3.2% 90,818 3.2% Penalties and interest 50,287 16,156 16,156 16,156 16,156 - 0.0% - 0.0% Manufactured home tax 43,670 47,825 47,825 47,825 47,825 - 0.0% - 0.0% Gravel tax 2,410 2,410 2,410 6,991 2,410 - 0.0%(4,581) -65.5% Total general property taxes 18,967,562 20,055,586 20,055,586 20,060,167 21,327,427 1,271,841 6.3%1,267,260 6.3% 2018 Amended Estimate Change from Change from General Fund Schedule of Revenues and Other Financing Sources (Uses) Budget 2018 30 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget Licenses and permits Licenses Tobacco 9,600$ 10,800$ 10,800$ 10,200$ 10,200$ (600)$ -5.6% - 0.0% Trash removal 2,975 3,825 3,825 2,975 2,975 (850) -22.2% - 0.0% Dog 10,406 11,000 11,000 9,000 9,000 (2,000) -18.2% - 0.0% Signs 8,775 7,250 7,250 8,700 8,700 1,450 20.0% - 0.0% On-sale liquor 173,300 167,200 167,200 167,450 167,450 250 0.1% - 0.0% Sunday liquor 5,400 4,600 4,600 4,800 4,800 200 4.3% - 0.0% Non-intoxicating liquor on 900 900 900 900 900 - 0.0% - 0.0% Non-intoxicating liquor off 4,500 4,500 4,500 4,500 4,500 - 0.0% - 0.0% Wine 2,400 2,400 2,400 2,400 2,400 - 0.0% - 0.0% Fireworks 1,950 1,850 1,850 1,850 1,850 - 0.0% - 0.0% Massage 4,025 1,975 1,975 4,025 3,950 1,975 100.0% (75) -1.9% Miscellaneous 6,656 5,275 5,275 5,350 5,350 75 1.4%- 0.0% Total licenses 230,887 221,575 221,575 222,150 222,075 500 0.2%(75) 0.0% - Permits - Plan review fees 673,920 447,481 447,481 583,485 499,265 51,784 11.6% (84,220) -14.4% Building 1,723,662 1,230,082 1,230,082 1,567,069 1,139,252 (90,830) -7.4% (427,817) -27.3% Plumbing 174,853 109,670 109,670 124,038 120,770 11,100 10.1% (3,268) -2.6% Water/sewer 60,681 47,438 47,438 58,880 47,520 82 0.2% (11,360) -19.3% Mechanical 145,427 97,786 97,786 120,050 124,035 26,249 26.8% 3,985 3.3% Grading/filling 600 1,000 1,000 1,000 1,000 - 0.0% - 0.0% Excavating/gravel 1,025 1,025 1,025 1,025 1,025 - 0.0% - 0.0% Driveway 50 700 700 700 700 - 0.0% - 0.0% Zoning 9,660 3,800 3,800 9,000 9,000 5,200 136.8% - 0.0% Right-of-way 46,608 35,000 35,000 55,000 35,000 - 0.0% (20,000) -36.4% Fire burning 1,225 1,250 1,250 1,250 1,250 - 0.0% - 0.0% Electrical 235,663 159,325 189,325 193,350 187,006 (2,319) -1.2% (6,344) -3.3% Miscellaneous 2,265 750 750 2,600 2,600 1,850 246.7%- 0.0% Total permits 3,075,639 2,135,307 2,165,307 2,717,447 2,168,423 3,116 0.1%(549,024) -20.2% Total licenses and permits 3,306,526 2,356,882 2,386,882 2,939,597 2,390,498 3,616 0.2%(549,099) -18.7% Change from 2018 Estimate General Fund Schedule of Revenues and Other Financing Sources (Uses) Change from 2018 Amended Budget 31 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget Intergovernmental State-aid police 450,655$ 450,820$ 450,820$ 464,005$ 464,005$ 13,185$ 2.9% - 0.0% State-aid fire relief 347,635 347,676 361,742 363,851 363,851 2,109 0.6% - 0.0% State-aid pensions 89,750 21,303 21,303 21,303 21,303 - 0.0% - 0.0% State POST Board grant 17,168 16,885 16,885 53,592 53,000 36,115 213.9% (592) -1.1% State Drug Task Force grant 2,363 2,010 2,010 946 946 (1,064) -52.9% - 0.0% State Police protective vests grant 24,682 6,600 6,600 13,200 10,800 4,200 63.6% (2,400) -18.2% State Police grants - 3,853 3,853 - - (3,853) -100.0% - 0% State fire training grant 21,968 22,900 22,900 21,850 20,675 (2,225) -9.7% (1,175) -5.4% State snowmobile trail maint. grant 200 200 200 200 200 - 0.0% - 0.0% Federal traffic safety project 18,773 24,000 24,000 19,000 19,000 (5,000) -20.8% - 0.0% Federal DUI enforcement grant 75,179 48,990 48,990 89,353 - (48,990) -100.0% (89,353) -100.0% Art Center CDP Grant 52,235 - - - - - 0% - 0% Met Council Comp Plan Grant 16,000 16,000 16,000 16,000 - (16,000) -100.0% (16,000) -100.0% CDBG - DT Devel. Guide/Strategic Plan 9,488 34,500 34,500 34,500 6,000 (28,500) -82.6% (28,500) -82.6% CDBG - DARTS Senior busing 4,083 10,184 17,084 8,766 21,810 4,726 27.7% 13,044 148.8% CDBG - Senior Chores & Repairs - - 15,000 8,000 8,000 (7,000) -46.7% - 0.0% Market value homestead credit 2,565 - - - - - 0% - 0% Other grants - Police 6,025 - - - - - 0% - 0% Other grants - Fire 1,540 - - - - - 0% - 0% Other grants - Recreation 2,865 - - - - - 0%- 0% Total intergovernmental 1,143,174 1,005,921 1,041,887 1,114,566 989,590 (52,297) -5.0%(124,976) -11.2% Change from 2018 Estimate General Fund Schedule of Revenues and Other Financing Sources (Uses) Budget Change from 2018 Amended 32 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget Charges for services General government Rezoning fees 2,500$ 2,000$ 2,000$ 3,000$ 2,500$ 500$ 25.0% (500) -16.7% Platting fees 14,100 12,000 12,000 12,500 12,500 500 4.2% - 0.0% Variance fees 4,300 2,000 2,000 3,400 3,000 1,000 50.0% (400) -11.8% PUD application fees 3,000 1,000 1,000 1,500 2,000 1,000 100.0% 500 33.3% CUP fees 10,000 7,000 7,000 10,000 7,000 - 0.0% (3,000) -30.0% Home occupation fees 100 - - - - - 0% - 0% Planner fees 49,728 44,000 44,000 44,000 44,000 - 0.0% - 0.0% Reinspection fees 4,100 3,800 3,800 3,300 4,000 200 5.3% 700 21.2% Inspection department fees 27,278 25,640 25,640 33,653 27,653 2,013 7.9% (6,000) -17.8% General government service charge POP 17,500 7,500 7,500 7,500 7,500 - 0.0% - 0.0% General government service charge 21,360 4,544 4,544 18,094 27,094 22,550 496.3% 9,000 49.7% Landscape escrow fund administration 22,478 16,000 16,000 22,000 22,000 6,000 37.5% - 0.0% Lodging tax fee 12,541 11,250 11,250 12,500 12,500 1,250 11.1% - 0.0% Fiscal Agent - Dakota Comm. Ctr.66,900 68,238 68,238 68,352 69,719 1,481 2.2% 1,367 2.0% Fiscal Agent - Arenas 32,292 32,938 32,938 33,000 33,660 722 2.2% 660 2.0% Investment management fees 29,000 33,000 33,000 33,000 33,000 - 0.0% - 0.0% Sale of maps/copies 9 20 20 20 20 - 0.0% - 0.0% Finance charges 1,253 1,500 1,500 1,500 1,500 - 0.0%- 0.0% Total general government 318,439 272,430 272,430 307,319 309,646 37,216 13.7%2,327 0.8% Public safety Police department charges 230,787 209,050 404,050 392,701 180,103 (223,947) -55.4% (212,598) -54.1% SRO - ISD 194 contributions 232,373 241,688 241,688 234,146 244,407 2,719 1.1% 10,261 4.4% Animal pickup 1,975 2,000 2,000 1,600 1,600 (400) -20.0% - 0.0% Animal storage 3,775 3,200 3,200 3,200 3,200 - 0.0% - 0.0% Animal rabies 695 700 700 500 500 (200) -28.6% - 0.0% Restitution 571 1,400 1,400 3,192 500 (900) -64.3% (2,692) -84.3% Forfeiture - sale of assets 23,153 42,000 42,000 20,000 20,000 (22,000) -52.4% - 0.0% Fire contracts 39,150 40,170 40,170 40,170 42,200 2,030 5.1% 2,030 5.1% Fire department charges 4,513 800 800 6,800 5,300 4,500 562.5% (1,500) -22.1% ALF Ambulance - admin. charge 4,938 4,944 4,944 4,944 5,000 56 1.1%56 1.1% Total public safety 541,930 545,952 740,952 707,253 502,810 (238,142) -32.1%(204,443) -28.9% 2018 Estimate Change from General Fund Schedule of Revenues and Other Financing Sources (Uses) Change from 2018 Amended Budget 33 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget Charges for services (continued) Public works Engineering platting - preliminary 32,103$ -$ -$ 19,582$ -$ -$ 0% (19,582) -100.0% Engineering platting - final 7,751 3,500 3,500 9,456 3,000 (500) -14.3% (6,456) -68.3% Engineering plan review 1,840 1,000 1,000 - - (1,000) -100.0% - 0% Engineering developer insp. fees - 5,000 5,000 - - (5,000) -100.0% - 0% Engineering developer cont. admin.231,720 107,800 107,800 530,000 206,899 99,099 91.9% (323,101) -61.0% Engineering Imp. Proj. design 64,672 170,309 170,309 134,668 134,668 (35,641) -20.9% - 0.0% Engineering Imp. Proj. const. inspect.438,558 674,619 674,619 399,363 399,363 (275,256) -40.8% - 0.0% Engineering Imp. Proj. administration 165,654 224,873 224,873 193,686 193,686 (31,187) -13.9% - 0.0% Engineering G.I.S. fees 30,855 25,170 25,170 55,940 33,600 8,430 33.5% (22,340) -39.9% Special assessment admin. charge 51,482 39,208 39,208 38,273 43,234 4,026 10.3% 4,961 13.0% Special assessment searches 25 100 100 25 25 (75) -75.0% - 0.0% Document/map sales 225 - - 204 50 50 0% (154) -75.5% Bid plan/spec. deposits 910 100 100 300 500 400 400.0% 200 66.7% Street department charges 10,488 16,000 16,000 16,000 16,000 - 0.0% - 0.0% Credit River - Judicial Road maint.980 2,700 2,700 2,700 2,700 - 0.0% - 0.0% Developer street signs installation 27,836 30,000 30,000 35,000 30,000 - 0.0%(5,000) -14.3% Total public works 1,065,099 1,300,379 1,300,379 1,435,197 1,063,725 (236,654) -18.2%(371,472) -25.9% Parks, recreation and arts center Brochure advertising 10,800 10,000 10,000 10,000 10,000 - 0.0% - 0.0% Youth activities 165,996 171,946 176,696 189,083 192,083 15,387 8.7% 3,000 1.6% Youth activities donations 48 - - - 0% - 0% Youth sport surcharge 31,145 32,600 32,600 32,600 32,600 - 0.0% - 0.0% Youth special events 12,967 16,659 16,659 18,627 18,627 1,968 11.8% - 0.0% Youth special events donations 3,058 1,200 1,200 - - (1,200) -100.0% - 0% Adult activities 56,234 50,578 50,578 50,038 50,398 (180) -0.4% 360 0.7% Puppet wagon donations 5,290 5,000 5,000 4,815 4,815 (185) -3.7% - 0.0% Safety Camp 4,819 2,730 2,730 3,718 3,718 988 36.2% - 0.0% Safety Camp donations - 1,000 1,000 1,000 1,000 - 0.0% - 0.0% Active Adults donations 2,081 2,200 2,200 2,200 2,200 - 0.0% - 0.0% Active Adults Brochure Ad Revenue 7,360 2,500 2,500 2,500 4,400 1,900 76.0% 1,900 76.0% Active Adults program fees 44,099 20,150 25,150 20,150 25,250 100 0.4% 5,100 25.3% Active Adults membership surcharge 27,686 21,000 21,000 21,000 21,000 - 0.0% - 0.0% Active Adults special events - 16,000 16,000 16,000 16,000 - 0.0% - 0.0% Active Adults Club Fundraising 15,854 - - - - - 0% - 0% Active Adults excursions - 11,000 11,000 11,000 14,000 3,000 27.3% 3,000 27.3% Ritter Farm Park ELC 4,822 9,183 9,183 4,956 6,984 (2,199) -23.9% 2,028 40.9% Excursions 6,045 8,000 8,000 8,000 8,000 - 0.0% - 0.0% Tennis lessons 19,845 17,815 17,815 17,815 17,815 - 0.0%- 0.0% Total recreation programs 418,149 399,561 409,311 413,502 428,890 19,579 4.8% 15,388 3.7% Park rental/maint./tournament fees 45,819 32,250 32,250 32,250 32,250 - 0.0% - 0.0% Tree sales (net)(1,597) 1,597 1,597 1,597 1,597 - 0.0% - 0.0% Senior/Heritage Center rentals 60,494 64,831 64,831 58,831 54,831 (10,000) -15.4%(4,000) -6.8% Total parks and recreation 522,865 498,239 507,989 506,180 517,568 9,579 1.9%11,388 2.2% Arts center program fees 116,808 114,695 114,695 107,500 109,000 (5,695) -5.0% 1,500 1.4% Arts center on-sale 9,657 17,000 17,000 12,900 12,800 (4,200) -24.7% (100) -0.8% Arts center rental/event admissions 159,140 177,605 185,605 196,700 218,700 33,095 17.8%22,000 11.2% Total arts center 285,605 309,300 317,300 317,100 340,500 23,200 7.3%23,400 7.4% Total parks, recreation and arts center 808,470 807,539 825,289 823,280 858,068 32,779 4.0%34,788 4.2% Total charges for services 2,733,938 2,926,300 3,139,050 3,273,049 2,734,249 (404,801) -12.9%(538,800) -16.5% Change from 2018 Estimate General Fund Schedule of Revenues and Other Financing Sources (Uses) Budget 2018 Amended Change from 34 2018 2018 2019 2017 Adopted Amended 2018 Adopted Actual Budget Budget Estimate Budget Court fines 392,514$ 425,000$ 425,000$ 331,000$ 346,000$ (79,000)$ -18.6%15,000$ 4.5% Investment income 116,686 90,071 90,071 108,000 120,000 29,929 33.2%12,000 11.1% Miscellaneous Disposal of assets 3,017 4,440 4,440 4,140 4,140 (300) -6.8% - 0.0% Donations 40,957 10,500 20,500 29,009 9,690 (10,810) -52.7% (19,319) -66.6% Antenna site leases 31,963 32,363 32,363 35,184 33,333 970 3.0% (1,851) -5.3% Other (298) - - - - - 0%- 0% Total miscellaneous 75,639 47,303 57,303 68,333 47,163 (10,140) -17.7%(21,170) -31.0% Other financing sources (uses) - Transfers Special Revenue From Communications Fund 75,429 78,663 78,663 78,663 80,866 2,203 2.8% 2,203 2.8% To Communications Fund (181,957) (260,864) (260,864) (260,864) - - -100.0% 260,864 -100.0% Capital Projects To Improvement Construction Fund (1,179) - (150,000) (150,000) - 150,000 -100.0% 150,000 -100.0% To Building Fund (200,000) (300,000) (322,162) (322,162) - 322,162 -100.0% 322,162 -100.0% To Equipment Fund (1,475,594) - - - (480,000) (480,000) 0% (480,000) 0% To Park Improvement Fund - - (125,000) (125,000) (150,000) (25,000) 20.0% (25,000) 20.0% To Trail Improvement Fund - (100,000) (100,000) (100,000) - 100,000 -100.0% 100,000 -100.0% Enterprise From Liquor Fund 198,819 194,866 194,866 194,866 158,573 (36,293) -18.6% (36,293) -18.6% From Utility Fund 455,349 441,703 441,703 441,703 477,043 35,340 8.0% 35,340 8.0% Internal Service - 0% From Municipal Reserve Fund 53,057 50,000 50,000 50,000 50,000 - 0.0%- 0.0% Total other financing (net)(1,076,076) 104,368 (192,794) (192,794) 136,482 329,276 -170.8%329,276 -170.8% Estimate Change from 2018 Amended Budget General Fund Schedule of Revenues and Other Financing Sources (Uses) Change from 2018 35 MAYOR AND COUNCIL Program Description: The Mayor and City Council are the legislative and governing body of the City of Lakeville. The Mayor and four City Council Members are elected at-large; the Mayor and each Council Member is elected to a four-year term. Council Member elections are staggered so that two Council Members are elected every two years. The Mayor and Council Members represent the entire community and they are empowered by law to legislate City-wide policy. This includes the authority to pass and enforce ordinances, establish public and administrative policies, create advisory boards and commissions, and manage the City's financial operations including preparing a budget, auditing expenditures, and transacting other City business as required by law. The City Council also serves as the Housing and Redevelopment Authority (HRA) for the City. The City Council appoints a City Administrator who directs City staff on implementation of Council decisions and provides day-to-day City operations. Services:  Represents the People of Lakeville.  Exercises legislative authority through the enactment of ordinances, policies, and resolutions.  Conducts the City’s intergovernmental affairs. The Council may make agreements for the joint exercise of powers through agreements with other units of government, appoint people to serve on intergovernmental bodies, conduct City business with State and Federal agencies, and participate in intergovernmental programs and the work of municipal associations such as the League of Minnesota Cities.  Has the full authority over the City’s financial affairs, including but not limited to levying taxes, adopting a budget, disbursement of public monies, and issuance of debt.  Formulates policies that will help the City prepare for the future and adjust to social and economic trends which require long- range planning regarding City facilities, needs and services.  Directs the enforcement of City ordinances.  Appoints members of the advisory boards.  Provides leadership by promoting ideas and programs which serve the community. 36 MAYOR AND COUNCIL Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 49,305$ 49,041$ 48,938$ 62,561$ Commodities - 50 90 50 Other charges and services 48,331 58,139 50,439 50,639 Total 97,636$ 107,230$ 99,467$ 113,250$ Revenue sources Taxes and other public funds 97,636$ 107,230$ 99,467$ 113,250$ 37 COMMITTEES AND COMMISSIONS Program Description:  The City has a number of committees which provide recommendations to the City Council relating primarily to policy issues. Committees include Planning, Economic Development, Finance, Lakeville Area Arts Center, Parks Recreation and Natural Resources, Lakeville Yellow Ribbon, Cable TV Board and the Pan-O-Prog community celebration. Services:  Advise City Council relative to policy issues.  Staff support of the annual Pan-O-Prog community celebration. Budget Summary: 2018 2019 2017 Amended 2018 Preliminary Function Actual Budget Estimate Budget Planning Commission 3,812$ 4,715$ 4,746$ 4,700$ Economic Development 664 1,115 704 800 Parks, Recreation and N.R.2,081 2,833 2,077 2,350 Finance Committee 503 715 663 700 Lakeville Area Arts Center 789 865 840 850 Pan-O-Prog 85,307 87,357 84,688 58,818 Total 93,156$ 97,600$ 93,718$ 68,218$ 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 69,868$ 71,902$ 69,258$ 53,388$ Commodities 2,550 1,630 1,630 1,630 Other charges and services 20,738 24,068 22,830 13,200 Total 93,156$ 97,600$ 93,718$ 68,218$ Revenue sources Charges for services 17,500$ 7,500$ 7,500$ 7,500$ Miscellaneous - 10,000 10,000 - Taxes and other public funds 75,656 80,100 76,218 60,718 Total 93,156$ 97,600$ 93,718$ 68,218$ 38 CITY ADMINISTRATION Program Description: The City Administration Department, under the direction of the City Administrator, is charged with implementing policy and direction established by the City Council. It is the responsibility of the City Administrator to provide the overall direction for the City organization in accordance with policies established by the City Council. Other responsibilities are to ensure that City operations are conducted efficiently and effectively such that City Council and citizen concerns are addressed. The department also develops recommendations to the City Council regarding programs, operations and policies. In addition, the City Administrator presents, reviews and monitors the annual operating budget for the City. This leadership helps to ensure that the City of Lakeville operates within the boundaries of prudence and ethics as set forth in the Lakeville Policy Manual and City Code of Ordinances. Services:  Provide complete and objective information and recommendations to the City Council.  Oversee and support City departments as they provide the best possible services to the community at the lowest possible cost.  Provide comprehensive vision and leadership for the City organization so that desires and needs of the community and City Council goals are achieved.  Prepare and provide to the City Council a fiscally responsible budget to finance City operations in support of community desires and City Council goals.  Attends and participates in discussions at all meetings of the City Council and other official bodies as directed by the Council.  Handles personnel matters for the City in accordance with policy as established by the City Council. Negotiates or delegates the negotiation of terms and conditions of employee labor contracts for presentation to the City Council. Conducts annual evaluations and review of work performance for all department heads.  Recommends from time to time the adoption of such measures as deemed necessary for the health, safety and welfare of the community or for the improvement of the administration. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget City Administrator 1.0 1.0 1.0 1.0 Assistant City Administrator 1.0 1.0 1.0 1.0 Senior Administrative Assistant/ Deputy Clerk 1.0 1.0 1.0 1.0 Total 3.0 3.0 3.0 3.0 39 CITY ADMINISTRATION (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 391,691$ 423,716$ 426,323$ 455,248$ Commodities 811 1,200 1,600 1,600 Other charges and services 15,443 52,154 48,990 20,658 Capital outlay - 1,500 1,500 - Total 407,945$ 478,570$ 478,413$ 477,506$ Revenues and other financing Revenue sources Other financing sources 56,411$ 60,478$ 60,619$ 63,357$ Taxes and other public funds 351,534 418,092 417,794 414,149 Total 407,945$ 478,570$ 478,413$ 477,506$ 40 CITY CLERK Program Description: The City Clerk is a statutory office that is responsible for City records management, election administration, legal notification to the public, the issuance of licenses and permits, and the preparation and retention of the official minutes. The office is also the primary source of information for citizen questions and public records requests. The City Clerk is responsible for election administration including staffing and adherence to all election laws of the State of Minnesota and the Federal government. The duties and responsibilities of the City Clerk are described in Minnesota Statute 412.591. Services:  Preparation of Council meeting agendas.  Attend all Council meetings and record meeting minutes.  Administration of ordinance codification.  Administration of records management system in accordance with Minnesota Data Retention Act.  Elections administration.  Issuance and renewal of licenses. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget City Clerk 1.0 1.0 1.0 1.0 Total 1.0 1.0 1.0 1.0 41 CITY CLERK (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 110,217$ 115,980$ 115,286$ 114,305$ Commodities 215 4,100 3,600 300 Other charges and services 26,108 95,077 89,526 33,981 Total 136,540$ 215,157$ 208,412$ 148,586$ Revenue sources Taxes and other public funds 136,540$ 215,157$ 208,412$ 148,586$ Total 136,540$ 215,157$ 208,412$ 148,586$ 42 LEGAL COUNSEL Program Description: The City Attorney’s office has the statutory responsibility for the administration of all legal services for the City of Lakeville. The work involves serving as the legal advisor and providing legal services to the Council, the committees, commissions and boards of the City, and all City departments. The responsibilities of the office also include substantial involvement in City projects, liability issues, and contractual agreements. The City of Lakeville retains the services of Campbell Knutson, P.A., to handle the City’s legal affairs including questions of law, court actions and prosecutions. Funding for prosecution is provided for in the Police Department budget. Services:  Acts as legal counsel at meetings of the City Council and Planning Commission.  Drafts and revises local ordinances and resolutions.  Researches and writes legal opinions and memoranda for elected officials and City departments.  Represents the City, its boards and officers, in civil claims and litigation.  Drafts and reviews development agreements.  Negotiates and drafts City contracts, leases and indemnification agreements.  Administration of all real estate activity. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Other charges and services 77,936$ 80,000$ 78,296$ 81,000$ Revenue sources Taxes and other public funds 77,936$ 80,000$ 78,296$ 81,000$ 43 PLANNING Program Description: The Planning Department offers a variety of services to preserve and enhance the quality of life for those who live and work in the community. The department guides the physical development of Lakeville in a manner that promotes sustained and managed growth and protects the health, safety and general welfare of its residents. The department oversees all the short and long term land use, zoning and development activities as required by State Statute. The Planning Department provides technical support to the Planning Commission and City Council. Services:  Administer comprehensive planning and development regulations and policies as adopted by the City of Lakeville and the laws of the State of Minnesota.  Administer development review and process permits consistent with land use, subdivision and environmental regulations.  Process applications in a timely, thorough and accurate manner.  Coordinate development review with other City departments and outside agencies.  Initiate dialogue in response to emerging community issues.  Respond to public inquiries accurately and in a timely manner. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Planning Director 1.0 1.0 1.0 1.0 Associate Planner 2.0 2.0 2.0 2.0 Planning & Zoning Specialist * 0.7 1.0 1.0 1.0 Administrative Assistant 0.5 0.5 0.5 0.5 Total 4.2 4.5 4.5 4.5 *Position title changed in 2019 44 PLANNING (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 477,104$ 518,211$ 517,963$ 538,195$ Commodities 1,079 2,291 2,041 2,041 Other charges and services 34,833 65,266 64,829 40,279 Total 513,016$ 585,768$ 584,833$ 580,515$ Revenue sources Intergovernmental 16,000$ 16,000$ 16,000$ -$ Charges for services 83,737 68,020 74,420 71,020 Taxes and other public funds 413,279 501,748 494,413 509,495 Total 513,016$ 585,768$ 584,833$ 580,515$ 45 COMMUNITY AND ECONOMIC DEVELOPMENT Program Description: The Community and Economic Development Department is responsible for services that promote business and development that supports the overall economic vitality of the community. Department services include business development, redevelopment, promotion and business retention; real estate sale and acquisitions, economic development strategic planning, and transportation improvement advocacy including transit facilities and service. Services:  Coordinate with the Dakota County CDA to administer HUD funded Community Development Block Grant programs and other housing and redevelopment programs.  Coordinate special projects, studies, and development projects related to economic development.  Coordinate with State and local agencies to provide assistance to new and expanding businesses.  Provide high-level City development strategies.  Respond to inquiries and assist developers and businesses to navigate through the City’s development process.  Serve as a liaison to the business community.  Staff and coordinate the activities of the Economic Development Commission (EDC).  Provide development updates, statistics, and demographics for the City Council, Economic Development Commission and City departments.  Coordinate Manufacturers Week activities.  Coordinate public information activities regarding local economic development issues. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Community and Econ. Dev. Director 1.0 1.0 1.0 1.0 Economic Development Specialist 0.9 1.0 1.0 1.0 Administrative Assistant 0.5 0.5 0.5 0.5 Total 2.4 2.5 2.5 2.5 46 COMMUNITY AND ECONOMIC DEVELOPMENT (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 273,882$ 294,620$ 294,307$ 307,121$ Commodities 242 250 250 250 Other charges and services 36,362 93,252 86,167 67,866 Total 310,486$ 388,122$ 380,724$ 375,237$ Revenues and other financing Revenue sources Intergovernmental 13,571$ 66,584$ 51,266$ 35,810$ Miscellaneous 3,317 2,500 14,734 5,690 Other financing sources 15,000 15,000 15,000 15,000 Taxes and other public funds 278,598 304,038 299,724 318,737 Total 310,486$ 388,122$ 380,724$ 375,237$ 47 INSPECTIONS Program Description: The primary responsibility of the Inspections Department is for enforcement of the adopted building codes. The department is also responsible for code enforcement to preserve the livability and integrity of residential and commercial districts and prevent deterioration and blighted influences within the community. Services:  Process applications, perform plan review and issue permits for residential commercial, industrial and institutional projects.  Assist design professionals, contractors and homeowners with interpretations on code related questions.  Perform building related inspections.  Issue Certificates of Occupancy for permits which meet or exceed permit requirements.  Coordinate records, consolidate plans and archives.  Provide information regarding code requirements.  Provide up-to-date handouts for homeowners regarding new deck construction and basement remodeling projects.  Respond to customer complaints concerning construction sites, property maintenance, code enforcement.  Respond to complaints of vacant homes and inspect home’s condition prior to occupancy.  Perform code compliance inspections.  Participate in the development and amendments to State and local code requirements both nationally and locally. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Building Official 1.0 1.0 1.0 1.0 Assistant Building Official 0.6 1.0 1.0 1.0 Senior Administrative Assistant 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 Sr. Plumbing/Mechanical Inspector 1.0 1.0 1.0 1.0 Sr. Building Inspector 1.4 1.0 1.0 1.0 Building Inspector 2.4 3.0 3.0 3.0 Total 8.4 9.0 9.0 9.0 48 INSPECTIONS (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 873,780$ 973,050$ 959,054$ 1,003,209$ Commodities 13,708 13,792 13,792 13,792 Other charges and services 252,948 269,111 260,192 256,543 Capital outlay 26,536 - - - Total 1,166,972$ 1,255,953$ 1,233,038$ 1,273,544$ Revenue sources Licenses and permits 3,084,414$ 2,172,557$ 2,726,147$ 2,177,123$ Charges for services 31,378 29,440 36,953 31,653 Taxes and other public funds (1,948,820) (946,044) (1,530,062) (935,232) Total 1,166,972$ 1,255,953$ 1,233,038$ 1,273,544$ 49 GENERAL GOVERNMENT FACILITIES Program Description: The General Government Facilities Department is responsible for the maintenance and operating costs of City Hall, a storage facility and a radio communications building. This department is also responsible for the landscape maintenance and snowplowing of the Heritage Library. This department provides staffing for planning, implementing, coordinating and evaluating a comprehensive program of improvements including project management for the following buildings that are budgeted within their respective departments. Facility General Government Facilities Budget City Hall Storage Facility Radio Communications Building Other Budgets Police Station Fire Station #1 Fire Station #2 Fire Station #3 Fire Station #4 Central Maintenance Facility Heritage Center Arts Center Water Treatment Facility Liquor Store Kenrick Liquor Store Galaxie Liquor Store Heritage Location 20195 Holyoke Avenue 7773 214th Street 17900 Jacquard Avenue 9237 183rd Street 20190 Holyoke Avenue 16720 Dodd Boulevard 17490 Kenrick Avenue 9465 185th Street 7570 179th Street West 20110 Holyoke Avenue 20965 Holyoke Avenue 18400 Ipava Avenue 16179 Kenrick Avenue 16000 Galaxie Avenue 20164 Heritage Drive Square Footage 32,600 25,000 800 68,569 8,700 5,724 5,500 13,830 110,000 16,406 8,200 47,125 9,714 11,300 8,960 Services:  Protect the investment the City and the Community have made in its facilities by developing and implementing long term facility maintenance programs to keep life cycle costs of the facilities as low as possible.  Plan for and procure services, equipment, tools and supplies necessary for effective and efficient operations.  Plan, organize, coordinate, assign, and monitor work of facilities maintenance and cleaning staff necessary to perform required job functions.  Manage facilities maintenance and repair projects.  Administer contracts and direct contractors for HVAC, generator maintenance, electrical, plumbing, etc.  Preventive maintenance programs. 50 GENERAL GOVERNMENT FACILITIES (continued) Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Facilities Supervisor* 1.0 1.0 1.0 1.0 Facility Attendant 2.5 3.3 4.0 4.2 City Hall Receptionist 1.6 1.6 1.6 1.6 City Hall Administrative Assistant 0.4 0.4 0.4 0.4 Total 5.5 6.3 7.0 7.2 *Position title changed in 2019 Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 325,674$ 365,090$ 371,500$ 399,147$ Commodities 22,268 26,243 23,914 22,174 Other charges and services 164,912 178,529 176,932 186,003 Total 512,854$ 569,862$ 572,346$ 607,324$ Revenues and other financing Revenue sources Miscellaneous 31,963$ 32,363$ 35,184$ 33,333$ Other financing sources 72,727 73,905 73,596 85,422 Taxes and other public funds 408,164 463,594 463,566 488,569 Total 512,854$ 569,862$ 572,346$ 607,324$ 51 FINANCE Program Description: The Finance Department is responsible for the overall financial management, accounting and reporting activity of the City. This department also provides financial controls and treasury management of other City departments to help ensure proper stewardship of public funds. The Finance Department coordinates the annual operating and capital budget process for all City operations. Services:  Financial reporting. Coordinate and prepare the annual audit and Comprehensive Annual Financial Report (CAFR). Maintain high quality audit results and minimize audit costs. Preparation of required State, Federal and other government agency reports. Maintain general ledger and fixed capital asset systems and perform various accounting functions such as reconciliation of various accounts.  Treasury management including investment of City funds, accounts payable function, debt management and reporting and manage bank agreements and transactions to minimize costs and maximize efficiency.  Billing and collection for City services including but not limited to development related services, licenses, public safety activities and quarterly water, sanitary sewer, street light services and environmental resources. Manage utility billings to provide high quality customer service and timely deposit of collections.  Fiscal agent for ALF Ambulance, Dakota Communications Center, and Lakeville Arenas. Services include preparation of Comprehensive Annual Financial Report, interim financial reports, accounts payable functions, treasury management, budgeting, and debt management.  Budget administration including the Capital Improvement Plan.  Supervision of City risk management program. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Finance Director 1.0 1.0 1.0 1.0 Assistant Finance Director 1.0 1.0 1.0 1.0 Senior Financial Analyst * 3.0 3.0 3.0 3.0 Financial Analyst * 1.0 1.0 1.0 1.0 Accounts Payable Technician 1.0 1.0 1.0 1.0 Total 7.0 7.0 7.0 7.0 *Position title changed in 2019 52 FINANCE (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 659,046$ 696,628$ 691,737$ 716,653$ Commodities 2,426 3,500 3,514 3,525 Other charges and services 77,000 81,406 82,369 84,251 Total 738,472$ 781,534$ 780,120$ 804,429$ Revenues and other financing Revenue sources Charges for services 129,445$ 135,676$ 135,852$ 137,879$ Other financing sources 53,057 50,000 50,000 50,000 Taxes and other public funds 555,970 595,858 594,268 616,550 Total 738,472$ 781,534$ 780,120$ 804,429$ 53 INFORMATION TECHNOLOGY Program Description: The Information Technology Department is responsible for providing and supporting the electronic information systems of other City departments. The services provided by the Department include network infrastructure support; desktop computer support; and planning, analysis and implementation of information systems technology. Services:  Provide 24/7 access to the City’s website.  Provide support for users of City information systems.  Establish and maintain network systems to allow efficient flow of information.  Coordinate future systems development.  Maintain and support the City’s local area networks.  Assist with the maintenance and development of the City’s wide area network.  Perform maintenance and repair work on city-owned computing equipment.  Perform installation, maintenance, and upgrades of city-owned computer software, and VoIP telephones.  Provide training and software support to City personnel.  Maintain and assist in development of the City’s World Wide Web and Intranet sites.  Coordinate and monitor Internet access for City employees.  Coordinate with City staff and LOGIS on the deployment and operation of applications.  Provide desktop support to City staff.  Provide maintenance and support for document imaging solution.  Development and implementation of City data security plan and disaster recovery. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Information Technology (IT) Manager* 1.0 1.0 1.0 1.0 IT Administrator* 1.0 1.0 1.0 1.0 IT Technician* 1.8 2.0 2.0 2.0 Total 3.8 4.0 4.0 4.0 *Position title changed in 2019 54 INFORMATION TECHNOLOGY (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 371,062$ 430,046$ 417,744$ 443,618$ Commodities 4,617 2,995 3,675 4,425 Other charges and services 165,531 240,195 245,842 340,502 Total 541,210$ 673,236$ 667,261$ 788,545$ Revenues and other financing Revenue sources Other financing sources 125,539$ 125,793$ 125,853$ 133,770$ Taxes and other public funds 415,671 547,443 541,408 654,775 Total 541,210$ 673,236$ 667,261$ 788,545$ 55 HUMAN RESOURCES Program Description: The City Human Resources Department is responsible for development, recommendation and implementation of policies related to human resources issues. The Department provides guidance and assistance to City leadership and employees regarding recruitment, employee satisfaction and development. The Human Resources function strives to retain and support a workforce committed to high quality, efficient services and respectful working relationships. Services:  Employee wage and benefit packages administration.  Payroll administration.  Workers compensation claims processing.  FMLA, extended leave administration  Partner in recruitment and performance management with all departments.  Personnel records management.  Compensation and classifications system administration. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Human Resources Manager 1.0 1.0 1.0 1.0 Human Resources Specialist* 1.0 1.0 1.0 1.0 Payroll Specialist* 2.0 2.0 2.0 2.0 Total 4.0 4.0 4.0 4.0 *Position title changed in 2019 56 HUMAN RESOURCES (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 364,391$ 387,122$ 397,384$ 416,092$ Commodities 1,853 2,913 2,552 3,865 Other charges and services 94,258 133,650 127,970 108,040 Total 460,502$ 523,685$ 527,906$ 527,997$ Revenues and other financing Revenue sources Other financing sources 129,481$ 130,089$ 130,197$ 128,587$ Taxes and other public funds 331,021 393,596 397,709 399,410 Total 460,502$ 523,685$ 527,906$ 527,997$ 57 INSURANCE Program Description: The Insurance Department is responsible for property and liability insurance, workers compensation, the Employee/Management Safety Committee, and related health and safety programs (OSHA, DOT, and EPA). The City uses the Internal Service Municipal Reserves Fund for accounting, reporting and allocation of related insurance costs. Under this model, operating departments within the various City funds receive a charge from the Municipal Reserves Fund, and all costs (premiums, claims, and related) are reflected in a single fund. This allows for better accounting and monitoring of the City’s risk management costs. Workers compensation costs are charged to the various City funds and allocated to their individual departments based on employee salaries. The Insurance Department represents the General Fund’s share of the risk management activities. Services:  Manage potential risk and loss from unforeseen events. Tactics include aggressive case management, promoting safe behaviors, and ensuring safe environments. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Other charges and services 285,000$ 425,000$ 425,000$ 285,000$ Revenue sources Taxes and other public funds 285,000$ 425,000$ 425,000$ 285,000$ 58 POLICE Program Description: The primary function of the Police Department is to safeguard and protect the lives, health and property of the Citizens of Lakeville. The Department includes a wide array of public safety functions including patrol, investigations, proactive drug enforcement, animal control, canine unit, community service, police reservists, Chaplaincy, park ranger and Emergency Management Preparedness. Services:  Patrol. Provide 9-1-1 uniformed patrol response 24 hours a day, 7 days a week including traffic safety and code enforcement, conflict resolution team, MAAG team and special operations team.  Dispatching. City of Lakeville is a member of the Dakota Communications Center Joint Powers Organization which provides dispatching services for all police, fire and emergency management services in the County.  Investigations. Adult and juvenile investigations of criminal activity. Includes crime scene investigation unit and one officer assigned to the South Metro Drug Task Force. Provide background and compliance checks for licensing functions.  Administrative Services. The support staff is responsible for maintenance of police records in accordance with State and Federal data practice laws.  Outside Services. Creating a sense of community and belonging through National Night Out, mental health outreach, safety camp participation, Police cable TV programming and other programs.  Courts and prosecution. City attorney prosecutes those who face criminal charges brought forth by the City of Lakeville.  School Resource Liaisons. Two police officers are assigned to the senior high and middle schools during the school year.  Emergency Management. Function includes civil defense siren system and preparation for possible community emergencies.  Animal Control. Function includes dog licensing and animal code enforcement.  Community Service Officer (CSO). Provide assistance to sworn officers. Responsible for maintenance of facility and vehicles. During the summer, the department employs seasonal CSOs who maintain order at the Lake Marion boat launch and enforce park regulations.  Police Reserves. The Police Reserves unit is comprised of non-sworn volunteers who assist the police officers with special events and community emergencies. 59 POLICE (continued) Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Sworn Officer Chief 1.0 1.0 1.0 1.0 Deputy Chief 1.0 1.0 1.0 1.0 Lieutenant 4.0 4.0 4.0 4.0 Sergeant 5.0 5.0 5.0 6.0 Investigator 6.0 6.0 6.0 6.0 Narcotics Task Force Officer 1.0 1.0 1.0 1.0 DUI Enforcement Grant 1.0 0.8 0.8 0.0 Patrol Officer 37.0 39.4 37.2 40.0 Total Sworn Officers 56.0 58.2 56.0 59.0 Business Manager 1.0 1.0 1.0 1.0 Evidence Technician 1.0 1.0 1.0 1.0 Community Service Officer 5.7 4.8 5.1 4.8 Records Analyst 1.0 1.0 1.0 1.0 Police Administrative Assistant 4.7 4.7 4.7 5.0 Total 69.4 71.7 68.8 71.8 60 POLICE (continued) Budget Summary: 2018 2019 2017 Amended 2018 Preliminary Program Actual Budget Estimate Budget Police patrol 5,505,202$ 6,239,300$ 6,135,800$ 6,268,624$ Investigations 1,177,590 1,178,808 1,147,530 1,261,670 Dispatching 1,014,168 1,152,792 1,152,792 1,217,272 Administration 415,588 416,738 423,451 437,783 Records management 693,332 812,670 799,325 866,037 Vehicle and equipment maint.224,466 240,041 240,141 240,341 Courts and prosecution 222,679 229,361 229,361 236,242 K-9 unit 266,157 283,846 279,401 293,779 Facility maintenance 203,052 194,462 185,568 209,172 Community Service Officers 244,814 269,220 256,986 286,151 School Resource Officers 268,946 237,309 234,146 240,407 DUI Grant Officer 95,055 116,626 85,259 - Animal control 7,590 14,000 10,100 10,100 Police reserves 27,182 15,231 15,040 30,565 Crime prevention 4,032 3,325 3,325 3,630 Other 28,286 28,483 27,215 26,515 Total 10,398,139$ 11,432,212$ 11,225,440$ 11,628,288$ 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 8,198,697$ 9,038,216$ 8,815,848$ 9,083,175$ Commodities 379,387 396,022 402,243 401,462 Other charges and services 1,820,055 1,997,974 2,007,349 2,143,651 Total 10,398,139$ 11,432,212$ 11,225,440$ 11,628,288$ Revenue sources Licenses 220,162$ 212,475$ 211,600$ 211,525$ Intergovernmental 594,845 553,158 640,096 547,751 Charges for services 493,329 695,038 655,339 450,310 Court fines 392,514 425,000 331,000 346,000 Miscellaneous 14,322 4,000 4,275 4,000 Taxes and other public funds 8,682,967 9,542,541 9,383,130 10,068,702 Total 10,398,139$ 11,432,212$ 11,225,440$ 11,628,288$ 61 FIRE Program Description: The City of Lakeville Fire Department is a dedicated team of firefighters providing a predictable, reliable, professional response striving to eliminated loss of life and property due to fire, accident or disaster. The department is staffed by pay-per-hour firefighters that respond to emergencies when needed and voluntary fill duty crews (effective 2015). The Department is responsible for fire emergency response, disaster preparedness, fire code compliance/enforcement, fire investigations, fire prevention and education. The City also maintains mutual aid agreements with neighboring communities which provide Lakeville with additional resources to meet the demands of a large-scale emergency. Services:  Emergency Response  Fire suppression.  Emergency Medical Response (EMS).  Vehicle extrication – rescue.  Ice and water rescue.  Domestic security and emergency management.  Hazardous condition and disaster mitigation.  Prevention  Plan review.  Alarm and suppression system acceptance testing.  Occupancy inspections.  Fire prevention inspections. Fire Investigation  Fire cause determination.  Education  Firefighters’ initial and continued education and certification.  Safety Camp.  National Night Out.  Fire prevention visits to schools.  Fire Department open house.  Station tours.  Public and employee fire extinguisher training. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Fire Chief 1.0 1.0 1.0 1.0 Assistant Fire Chief 1.0 1.0 1.0 1.0 Fire Marshal 1.0 1.0 1.0 1.0 Fire Inspector 1.0 1.0 1.0 1.0 Senior Administrative Assistant 1.0 1.0 1.0 1.0 Administrative Assistant 0.5 0.6 0.6 0.6 Total 5.5 5.6 5.6 5.6 62 FIRE (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 1,378,273$ 1,466,869$ 1,458,085$ 1,609,135$ Commodities 156,257 151,407 149,631 153,816 Other charges and services 282,990 271,917 273,568 271,986 Total 1,817,520$ 1,890,193$ 1,881,284$ 2,034,937$ Revenue sources Licenses 1,950$ 1,850$ 1,850$ 1,850$ Intergovernmental 371,143 384,642 385,701 384,526 Charges for services 48,601 45,914 51,914 52,500 Miscellaneous 19,564 - - - Taxes and other public funds 1,376,262 1,457,787 1,441,819 1,596,061 Total 1,817,520$ 1,890,193$ 1,881,284$ 2,034,937$ 63 ENGINEERING Program Description: The Engineering Department is responsible for planning, designing, surveying, inspecting, and constructing new public infrastructure including streets, wastewater collection system, water supply, storage and distribution system, storm water management system, bike and pedestrian trails, street signs, street lighting, and traffic signals. The Department also includes the Geographic Information System (GIS) function which is responsible for the management of data relating to parcels, parcel boundaries, utilities, streets, and other infrastructure. Services:  Public infrastructure. Provide design services; project oversight and management for streets, sanitary sewers, drainage and water projects to include wetland mitigation plans. Provide management of the public assessments and other property data. Prepare feasibility studies for new public projects that are assessed.  New development. Review proposed, preliminary and final plats related to new residential, commercial and industrial development construction projects. Process ensures that plans are in conformance with Comprehensive Plans, ordinances and City of Lakeville Standard Specifications.  Comprehensive Plans. Prepare and provide technical oversight and review of the Comprehensive Plans for Surface Water Management, Sanitary Sewer, Water Distribution System, and Transportation.  Customer service. Assist residents and provides technical assistance for drainage problems, grading issues, erosion control and drain tile. Includes review of residential, commercial, industrial and institutional surveys and construction plans (Site, Grading, Erosion Control, Street and Utility). Includes inspection for general compliance to the approved survey and subdivision plans. Respond to resident inquiries regarding drainage alteration and flood zones. Manages the public rights of way for all City streets.  Records Management. The department maintains the official City base maps, as- builts, plans, records and property data relating to special assessments.  Geographic Information System (GIS). Develop and maintain the City’s GIS database. Coordinate the maintenance, development, and application of GIS system. Manage the comprehensive inventory of City utilities. Manage the information conduit between Dakota County GIS and the City. 64 ENGINEERING (continued) Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Engineering City Engineer 1.0 1.0 1.0 1.0 Assistant City Engineer 0.0 1.0 1.0 1.0 Senior Project Engineer 2.0 0.0 0.0 0.0 Project Engineer 0.6 1.0 1.0 1.0 Civil Engineer 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 GIS GIS Manager* 1.0 1.0 1.0 1.0 GIS Technician 1.0 1.0 1.0 1.0 Total 7.6 7.0 7.0 7.0 *Position title changed in 2019 Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 679,094$ 745,625$ 729,275$ 769,706$ Commodities 6,911 8,476 8,476 12,966 Other charges and services 116,189 220,487 121,678 99,085 Total 802,194$ 974,588$ 859,429$ 881,757$ Revenues and other financing Revenue sources Charges for services 356,911$ 181,878$ 653,780$ 287,308$ Other financing sources 138,340 142,942 142,942 150,702 Taxes and other public funds 306,943 649,768 62,707 443,747 Total 802,194$ 974,588$ 859,429$ 881,757$ 65 CONSTRUCTION SERVICES Program Description: The Construction Services Department is responsible for the rehabilitation and maintenance of the City’s infrastructure systems including: pavement management, water main, sanitary sewer and storm sewer systems. Services:  Pavement Management. Complete annual pavement ratings and analysis of the City’s street system. The results of these ratings will be used to determine the City’s Overall Condition Index (OCI), which serves as a tool for prioritizing and programming the City’s Street Reconstruction Projects.  Street Reconstruction Program. Manage consultant(s) working to design the City’s annual Street Reconstruction Projects. Prepare materials associated with the 429 Special Assessment Process and for inspection duties during the construction of the projects.  Collector Roadway Financing. Provide annual updates to the City’s Collector Roadway Financing budget based on current funding priorities and updated construction cost estimates for use with future budgetary planning.  Collector Roadway Rehabilitation Projects. Survey, design, administer the contract and perform inspection duties for collector roadway rehabilitation projects. This includes compliance with all State Statute 429 requirements associated with specially assessing benefiting properties within the project areas, such as: preparation of the feasibility report, public hearing materials and notices, special assessment rolls and assessment hearing materials.  Public infrastructure. Provide design services; project oversight and management for other pavement management and utility rehabilitation projects, such as: The City’s annual Miscellaneous Roadway Repair Project, trail reconstruction projects and City parking lot improvement projects. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget O & M Construction Coordinator 0.4 - - - O & M Engineer Coordinator 0.4 - - - Construction Services Superintendent 0.4 1.0 1.0 1.0 Senior Construction Representative 1.6 2.0 1.0 2.0 Construction Representative 0.2 1.0 0.7 1.0 Graduate Engineer 0.3 1.0 1.0 1.0 Total 3.3 5.0 3.7 5.0 66 CONSTRUCTION SERVICES (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 423,947$ 538,730$ 449,716$ 552,065$ Commodities 7,293 8,515 7,915 7,915 Other charges and services 12,354 11,348 10,893 13,890 Capital outlay 29,886 28,559 28,559 - Total 473,480$ 587,152$ 497,083$ 573,870$ Revenue sources Charges for services 668,884$ 1,069,801$ 727,717$ 727,717$ Taxes and other public funds (195,404) (482,649) (230,634) (153,847) Total 473,480$ 587,152$ 497,083$ 573,870$ 67 STREETS Program Description: The Streets Department is responsible for the safe and reliable maintenance of the City’s infrastructure systems including pavement management, snow and ice removal, traffic control and signage, street lights, boulevard trees, boulevard mowing and storm sewer systems as well as the support systems such as fleet management. Services:  Snow removal and ice control. Plow snow and apply deicing chemicals to City streets during snow and ice events to maintain a safe driving surface.  Fleet management. Perform routine maintenance and repairs for the entire city fleet of vehicles, power tools and mobile equipment.  Street signs and striping. Inventory, manage, and install regulatory and informational street signs as well as traffic control striping of roadways, crosswalks and symbols.  Pavement Management. Manage contractors in the crack sealing of 300 centerline miles of streets within Lakeville’s pavement management districts. This includes patching and other repairs to streets and sidewalks.  Boulevard trees and mowing. Maintain 9,500 boulevard trees to include trimming, removal, and replacement as needed. Mow 87 miles of boulevards, road ditches and City-owned parcels four times annually.  Storm sewer maintenance. Assist with inspection of 20 percent of the City’s storm sewer outfalls each year to control water pollution by locating and correcting point sources that discharge pollutants.  Gravel road maintenance. Regular grading and shaping of road surfaces and the application of gravel and chemicals to reduce dust and stabilize the roadway.  Streetlights. Inspect streetlights throughout the City and manage the repair or replacement of damaged or inoperative lights. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Streets & Fleet Superintendent* 1.0 1.0 1.0 1.0 Streets Supervisor 1.0 1.0 1.0 1.0 Streets Lead Maintenance 0.9 1.0 1.0 1.0 Streets Maintenance II 11.8 12.0 12.0 12.0 Fleet Supervisor 1.0 1.0 1.0 1.0 Fleet Service Technician Lead 1.0 1.0 1.0 1.0 Fleet Service Technician 4.0 4.0 4.0 4.0 Administrative Assistant 1.0 1.0 1.0 1.0 Total 21.7 22.0 22.0 22.0 *Position title changed in 2019 68 STREETS (continued) Budget Summary: 2018 2019 2017 Amended 2018 Preliminary Program Actual Budget Estimate Budget Administration 440,632$ 564,121$ 506,771$ 532,806$ Snow removal and ice control 710,625 826,312 856,457 737,159 Fleet management 561,071 638,164 624,524 645,137 Signs and striping 314,961 348,491 320,792 339,485 Pavement management 211,082 239,539 224,579 229,600 Central Maintenance Facility 111,517 119,199 115,120 122,552 Boulevard trees and mowing 170,549 167,884 189,007 195,547 Storm sewer systems 127,150 147,945 130,004 133,710 Street sweeping 154,841 135,206 156,843 164,618 Gravel roads and dust control 132,981 125,437 129,001 133,963 Traffic signal systems 16,279 19,413 20,005 19,898 Sidewalks, curbs and gutters 11,842 8,505 11,651 12,288 Other 31,438 23,082 21,596 21,854 Total 2,994,968$ 3,363,298$ 3,306,350$ 3,288,617$ 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 1,876,234$ 2,120,785$ 2,070,265$ 2,183,894$ Commodities 819,315 891,838 895,490 746,573 Other charges and services 299,419 350,675 340,595 358,150 Total 2,994,968$ 3,363,298$ 3,306,350$ 3,288,617$ Revenues and other financing Revenue sources Charges for services 39,304$ 48,700$ 53,700$ 48,700$ Other financing sources 112,774 91,653 91,653 101,958 Taxes and other public funds 2,842,890 3,222,945 3,160,997 3,137,959 Total 2,994,968$ 3,363,298$ 3,306,350$ 3,288,617$ 69 PARKS Program Description: The City of Lakeville provides a comprehensive community-wide array of park facilities and open spaces. The Parks Department is committed to the effective and responsible management of parks, open space, facilities and resources to satisfy the needs of the community. Services:  Parks administration is responsible for planning, management and supervision of various program functions including park maintenance, recreation, the Lakeville Area Arts Center, and the Lakeville Active Adults.  Planning, administering and managing resources for park maintenance, improvements and development.  Provide routine maintenance of all athletic fields and facilities including Central Maintenance Facility, Heritage Center, Arts Center and the Ritter Farm Park Environmental Learning Center.  Provide routine maintenance to all neighborhood parks and associated support facilities.  Manage and maintain ten hockey and pleasure skating areas.  Collaborate with and assist various community groups and civic organizations as well as three school districts to plan, organize, promote and enhance other activities and opportunities within the City of Lakeville.  Assists with the organization and implementation of community-centered special events such as Household Hazardous Waste Drop-Off Day, Annual Tree Sale, Fourth of July Celebration, Pan-O-Prog, Lakeville Art Festival, and numerous youth athletic tournaments. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Administration Parks and Recreation Director 1.0 1.0 1.0 1.0 Senior Administrative Assistant 1.0 1.0 1.0 1.0 Parks Maintenance Parks Superintendent 1.0 1.0 1.0 1.0 Parks Supervisor 1.0 1.0 1.0 1.0 Parks Lead Maintenance 1.0 1.0 1.0 1.0 Parks Maintenance II 9.1 10.0 10.0 10.0 Administrative Assistant 1.0 1.0 1.0 1.0 Total 15.1 16.0 16.0 16.0 70 PARKS (continued) Budget Summary: 2018 2019 2017 Amended 2018 Preliminary Program Actual Budget Estimate Budget Park maintenance 1,486,846$ 1,577,649$ 1,538,283$ 1,637,337$ Administration 423,200 422,516 441,150 455,077 Park equipment maintenance 316,099 341,219 333,689 345,874 Hockey and skating rinks 125,516 173,844 152,685 157,099 Central maintenance facility 73,914 81,515 89,350 95,307 Trail lighting 45,634 47,239 49,799 54,269 Total 2,471,209$ 2,643,982$ 2,604,956$ 2,744,963$ 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 1,742,703$ 1,854,298$ 1,845,047$ 1,925,115$ Commodities 269,936 291,804 295,586 296,140 Other charges and services 455,845 492,080 460,643 523,708 Capital outlay 2,725 5,800 3,680 - Total 2,471,209$ 2,643,982$ 2,604,956$ 2,744,963$ Revenues and other financing Revenue sources Intergovernmental 200$ 200$ 200$ 200$ Charges for services 44,222 33,847 33,847 33,847 Miscellaneous 3,456 4,000 - - Taxes and other public funds 2,423,331 2,605,935 2,570,909 2,710,916 Total 2,471,209$ 2,643,982$ 2,604,956$ 2,744,963$ 71 RECREATION Program Description: The Recreation Department is responsible for providing year round recreational programs and activities for all age groups. The department also collaborates with and assists numerous Lakeville groups, organizations, clubs and school districts to provide recreation services throughout the community. Services:  Active Adults. The city maintains a facility to serve the senior population. Recreation and social programs are provided year around through the facility.  Youth activities. A variety of programs are provided including summer camps, sports camps, Kamp Kermit, Learn to Skate, music together, lunch camps and youth enrichment.  Adult activity. Leagues are organized through the Recreation Department that include basketball, softball, volleyball, broomball, dodgeball, dance, fitness, golf as well as the Ground Pounders Running Series.  Youth special events. Programs include egg hunts, scrabble, fishing contests, haunted forest, Pan-O-Prog programs, Santa calls and letters, Santa’s secret store.  Tennis and pickleball lessons and tournaments.  Ritter Farm Park ELC. The Environmental Learning Center is located in one of the metropolitan area’s most pristine nature areas. Nature programs provide participants with educational opportunities in a natural environment.  Puppet Wagon. The Lakeville Lions sponsor a mobile puppet show that travels to various community parks during the summer season.  Safety Camp. A program that is offered exclusively to 3rd and 4th graders, with the support of Lakeville Police and Fire, Dakota Electric and the National Guard. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Recreation Manager* 1.0 1.0 1.0 1.0 Recreation Program Coordinator 2.0 2.0 2.0 2.0 Recreation Administrative Assistant 1.0 1.0 1.0 1.0 Active Adults Administrative Assistant 1.0 1.0 1.0 1.0 Total 5.0 5.0 5.0 5.0 *Position title changed in 2019 72 RECREATION (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Program Actual Budget Estimate Budget Recreation administration 248,188$ 269,507$ 267,405$ 281,343$ Active Adults 204,023 225,719 222,124 241,617 Youth activities 130,144 138,533 147,712 150,852 Adult activities 25,221 29,246 29,176 26,491 Youth special events 14,923 13,167 13,081 13,058 Ritter Farm Park ELC 3,799 6,938 3,620 4,828 Excursions 4,962 6,500 6,500 6,500 Tennis lessons 15,329 13,393 13,393 13,393 Puppet wagon 5,098 4,815 4,815 4,815 Safety camp 1,756 1,960 1,960 2,240 Total 653,443$ 709,778$ 709,786$ 745,137$ 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 369,112$ 399,504$ 398,952$ 419,055$ Commodities 31,498 35,971 36,044 35,577 Other charges and services 252,833 274,303 274,790 290,505 Total 653,443$ 709,778$ 709,786$ 745,137$ Revenue sources Charges for services 402,295$ 409,311$ 413,502$ 428,890$ Intergovernmental 2,865 - - - Taxes and other public funds 248,283 300,467 296,284 316,247 Total 653,443$ 709,778$ 709,786$ 745,137$ 73 HERITAGE CENTER Program Description: The Heritage Center is a facility that is the home for the Lakeville Area Historical Society, Yellow Ribbon and the Lakeville Active Adults. The Heritage Center program accounts for all costs related to operating the facility including utilities, maintenance, repairs and operation of the facility. Services:  Facilities for the educational, social, and recreational programs for senior citizens.  Facilities for the Lakeville Active Adults.  Facilities for the Lakeville Yellow Ribbon.  Facilities for the Lakeville Area Historical Society.  Facility rental opportunities for community, private or business events. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Heritage Center Administrative Assistant 0.4 0.4 0.4 0.4 Facility Attendant (part-time) 1.1 1.1 1.1 1.1 Total 1.5 1.5 1.5 1.5 Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 57,499$ 64,261$ 66,425$ 71,576$ Commodities 8,589 12,578 9,463 9,358 Other charges and services 48,895 52,710 52,419 57,740 Total 114,983$ 129,549$ 128,307$ 138,674$ Revenue sources Charges for services 76,348$ 64,831$ 58,831$ 54,831$ Taxes and other public funds 38,635 64,718 69,476 83,843 Total 114,983$ 129,549$ 128,307$ 138,674$ 74 ARTS CENTER Program Description: The Lakeville Area Arts Center is a community facility that provides entertainment, educational, and recreational programs involving the visual and performing arts. Services:  The Arts Center offers a series of performing art classes involving a diverse variety of talent appealing to a wide range of audience members. Professional singers, instrumentalists, comedians, and actors are scheduled as part of the series.  “Expressions Community Theater” is comprised of area performers that produce four shows per year.  Art camps provide educational visual arts sessions for the area youth.  Painting classes are offered in acrylics, oils, and watercolors.  The pottery program offers classes for adults, youth, and special programs during the school day for home schooled youth.  Art classes are provided for a diverse spectrum of interests including silversmithing, glass lampworking, batik, seasonal ornaments, mixed media, and jewelry.  The Arts Center facility is also available for rent for family gatherings, educational training sessions or business presentations. Staffing: Position (FTE) 2016 Actual 2017 Budget 2017 Estimate 2018 Budget Arts Center Coordinator 1.0 1.0 1.0 1.0 Recreation Program Coordinator 0.0 1.0 1.0 1.0 Administrative Assistant 1.0 0.0 0.0 0.0 Facility Attendant (part-time) 1.9 1.5 1.5 1.5 Pottery Manager 0.7 0.2 0.2 0.2 Total 4.6 3.7 3.7 3.7 75 ARTS CENTER (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Program Actual Budget Estimate Budget Arts Center administration 204,628$ 206,082$ 201,907$ 217,837$ Arts Center facility 107,562 147,488 142,505 146,762 Performing arts events 40,548 48,250 60,450 55,750 Arts Center grant 49,525 - - - Event and building rentals 61,337 36,000 36,000 51,300 Art camp 23,839 22,100 22,600 22,600 Pottery classes 33,488 31,250 31,500 31,500 Expressions Community Theater 10,026 15,850 16,350 16,950 Painting classes 6,708 9,950 4,750 4,750 Art classes 2,218 1,400 2,300 2,600 Total 539,879$ 518,370$ 518,362$ 550,049$ 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Expenditures Personnel services 271,929$ 281,985$ 280,993$ 299,614$ Commodities 31,073 39,720 36,067 40,020 Other charges and services 227,734 193,165 201,302 210,415 Capital outlay 9,143 3,500 - - Total 539,879$ 518,370$ 518,362$ 550,049$ Revenue sources Intergovernmental 52,235$ -$ -$ -$ Charges for services 285,605 317,300 317,100 340,500 Taxes and other public funds 202,039 201,070 201,262 209,549 Total 539,879$ 518,370$ 518,362$ 550,049$ 76 Special Revenue Funds Special Revenue Funds are used to account for the proceeds from specific revenue sources that are either legally restricted or committed by City Council to expenditures of specific purposes. Establishment of such funds also enables the City to more effectively manage its resources and minimize tax levies. Communications Fund This fund accounts for franchise fees from cable TV operations. Expenditures and other financing uses are used to finance the City’s Cable TV and Public Communications functions, including long-term replacement of equipment. Economic Development Fund The administrative fees received from issuance of conduit debt in 2008 and the Minnesota Department of Trade and Economic Development (DTED) Economic Recovery Grant are committed to economic development initiatives. 77 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Licenses 681,664$ 688,473$ 684,418$ 687,840$ Intergovernmental 516 516 516 516 Charges for services 64,601 85,365 58,308 57,948 Investment income 2,822 3,420 1,924 2,237 Total revenues 749,603 777,774 745,166 748,541 Expenditures General government 520,726 1,052,510 978,528 800,110 Capital outlay 112,827 51,350 60,000 59,500 Total expenditures 633,553 1,103,860 1,038,528 859,610 Excess (deficiency) of revenues over expenditures 116,050 (326,086) (293,362) (111,069) Other financing sources (uses) Transfer from other funds 238,912 465,720 429,266 140,242 Transfer to other funds (85,213) (253,663) (253,663) (80,866) Net change in fund balance 269,749 (114,029) (117,759) (51,693) Fund balance, January 1 364,709 629,646 634,458 516,699 Fund balance, December 31 634,458$ 515,617$ 516,699$ 465,006$ CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for All Special Revenue Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 78 Economic Communications Development Total Revenues Licenses 687,840$ -$ 687,840$ Intergovernmental 516 - 516 Charges for services 57,948 - 57,948 Investment income 2,058 179 2,237 Total revenues 748,362 179 748,541 Expenditures General government 787,310 12,800 800,110 Capital outlay 59,500 - 59,500 Total expenditures 846,810 12,800 859,610 Excess (deficiency) of revenues over expenditures (98,448) (12,621) (111,069) Other financing sources (uses) Transfer from other funds 140,242 - 140,242 Transfer to other funds (80,866) - (80,866) Net change in fund balance (39,072) (12,621) (51,693) Fund balance, January 1 498,704 17,995 516,699 Fund balance, December 31 459,632$ 5,374$ 465,006$ 2019 Adopted Budget CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Special Revenue Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 79 COMMUNICATIONS FUND Fund Description: The Communications Fund is responsible for the City’s primary sources of information and communication including City bi-weekly newspaper advertorial, City website, social media channels, business informational pieces and Lakeville Government Television (Frontier cable channel 184 and Charter cable channel 180). The Communications Department also manages Lakeville Public Access Television (Frontier and Charter cable channel 187) and develops new content for the station, which is also used across multiple Communications channels. The department’s mission is to provide timely information regarding municipal programs and services, urgent announcements, as well as events, in a quality and cost-effective manner that engages the community and enhances the City’s image locally, regionally and nationally. Services:  Lakeville Government Television (LGTV) Channels 180 and 184. The Communications Department is responsible for creating government television programs for these channels. The Department produces and directs broadcasts of live meetings as well as prepares for rebroadcast on cable channels. Other services include updating the electronic message board on cable channels and working with other departments to create and produce unique and original content, such as police and fire programming, environmental services and economic development updates. The department also monitors Cable Franchise agreements and facilities the Cable TV Board.  Lakeville Public Access Television Channel 187. The public access television cable channel 187 is managed by the Communications Department.  Website. The City’s website is maintained by the Communications Department. The department also coordinates website content with the objectives of other departments. The department also maintains and promotes the employee intranet.  Publications. The department prepares ”Focus on Lakeville,” the City’s bi- weekly advertorial. Special publications, catalogs and flyers are produced on a needed basis across City departments. Marketing campaign plans and focused communications are prepared for projects or programs such as Comprehensive Land Use Plan, water conservation, dog ordinance, etc. Press releases are a responsibility of the department as well as responding to public inquiries. Developing and promoting the style and image standards for communications pieces are also a primary activity.  Social media. The department establishes and maintains City listservs for automatic e-mail delivery of City publications. They also participate in developing content and editing social media pages on multiple social platforms for the City and various departments within the City.  Event planning. The department is responsible for planning and coordination of special events and planned events for Liquor Operations. 80 COMMUNICATIONS FUND (continued) Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Communications Manager 1.0 1.0 1.0 1.0 Communications Specialist* 1.0 1.0 1.0 1.0 Marketing Specialist/Events Coordinator 0.5 1.0 1.0 1.0 Video Production & Tech Specialists 2.0 2.0 1.6 2.0 Total 4.5 5.0 4.6 5.0 *Position title changed in 2019 81 COMMUNICATIONS FUND (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Licenses - Franchise fee 681,664$ 688,473$ 684,418$ 687,840$ Intergovernmental 516 516 516 516 Charges for services-PEG fees/Other 62,101 82,865 58,908 57,948 Investment income 2,503 3,155 1,611 2,058 Total revenues 746,784 775,009 745,453 748,362 Expenditures - General government Personnel services 368,635 446,728 448,013 461,880 Commodities 8,751 9,279 11,724 14,900 Other charges and services 135,574 583,503 505,791 310,530 Capital outlay 112,827 51,350 60,000 59,500 Total expenditures 625,787 1,090,860 1,025,528 846,810 Excess (deficiency) of revenues over expenditures 120,997 (315,851) (280,075) (98,448) Other financing (uses)/sources - Transfers To General Fund (75,429) (78,663) (78,663) (80,866) To Improvement Constr Fund - (175,000) (175,000) - From General Fund 181,957 260,864 260,864 - From Enterprise Funds 56,955 204,856 168,402 140,242 Total other financing (uses)/sources 163,483 212,057 175,603 59,376 Net change in fund balance 284,480 (103,794) (104,472) (39,072) Fund balance, January 1 318,696 603,176 603,176 498,704 Fund balance, December 31 603,176$ 499,382$ 498,704$ 459,632$ Fund Balance Restricted 67,901 73,717 75,365 79,212 Committed 535,275 425,665 423,339 380,420 Fund balance, December 31 603,176$ 499,382$ 498,704$ 459,632$ CITY OF LAKEVILLE, MINNESOTA Special Revenue - Communications Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ending December 31, 2019 82 ECONOMIC DEVELOPMENT FUND (continued) Fund Description: The Economic Development Fund was created to account for the State of Minnesota Department of Trade and Economic Development (DTED) Economic Recovery Grant and administrative fees for conduit debt. The funds are appropriated to economic development initiatives. Services: Promote economic development activities by providing financial incentives to business which are considering locating to or expanding in the City of Lakeville. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Charges for services 2,500$ 2,500$ (600)$ -$ Investment income 319 265 313 179 Total revenues 2,819 2,765 (287) 179 Expenditures - General Government Other charges and services 7,766 13,000 13,000 12,800 Other financing (uses)/sources - Transfers To Capital Projects Fund (9,784) - - - Net change in fund balance (14,731) (10,235) (13,287) (12,621) Fund balance, January 1 46,013 26,470 31,282 17,995 Fund balance, December 31 31,282$ 16,235$ 17,995$ 5,374$ CITY OF LAKEVILLE, MINNESOTA Special Revenue - Economic Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ending December 31, 2019 83 Debt Service Funds These funds account for the accumulation of resources for the payment of long-term debt principal and interest, but excluding debt issued for and serviced by an Enterprise Fund. General Obligation (G.O.) Fund Debt approved by voter referendum, certificates of indebtedness, capital improvement and street reconstruction bonds. Revenues are provided primarily from property taxes. G.O. Improvement Fund Debt issued to finance construction of public improvements. The special assessments levied against benefited property owners are pledged toward the repayment of the principal and interest on these bonds. Tax Increment Fund Debt issued to finance construction of public improvements in accordance with approved tax increment plans. Property tax increments received from designated tax increment financing districts are pledged to the payment of the bonds. State-aid Street Fund Debt issued to finance construction of State-aid street projects within the City. The primary revenue source is municipal street State-aid allotments from the State of Minnesota Department of Transportation. Water Revenue Fund Debt issued to finance the construction of wells, pump houses, towers, water main systems, and the City’s water treatment facility. Water connection fees are pledged toward the repayment of the principal and interest on these bonds. Arena Revenue Fund Debt issued for the construction of the Lakeville Ames Ice Arena first and second sheet of ice, spectator seating and locker rooms. Revenue sources include donations from net operating ice arena revenues and other sources pledged to the payment of the bonds. The Ice Arena Revenue Refunding Bonds, Series 2008 A is a general obligation backed by the full-faith and credit of the City. The Gross Revenue Recreation Facility Bonds of 1999 are not general obligations. 84 Debt Service Funds (Continued) HRA Revenue Fund The Lakeville Housing and Redevelopment Authority (HRA) issued Lease Revenue Refunding Bonds (Ice Arena Project), Series 2016, to refinance the HRA Ice Arena Lease Revenue Bonds, Series 2006, resulting in approximately $1 million in interest savings. Debt service will be payable from property taxes and lease payments to be made to the City pursuant to the lease agreement between the HRA and Independent School District 194. These HRA bonds are not general obligations and, accordingly, are not backed by the full-faith and credit of the City. The HRA issued Lease Revenue Liquor Enterprise Refunding Bonds, Series 2017A, to refinance the Liquor Revenue Bonds, Series 2007, resulting in approximately $.3 million in interest savings. Debt service will be payable from liquor revenues. 85 DEBT SERVICE FUNDS Fund Description: Debt Service Funds are established to account for the accumulation of resources for the payment of general long-term principal, interest and related costs also referred to as the “Government Activities Bonds.” Not included is the debt issued for and serviced by the Utility Fund. As of December 31, 2018, the City of Lakeville has approximately $113.91 million of governmental activities debt outstanding. The total of all debt, including Utility revenue bonds is $121.72 million. Outstanding December 31, 2018 Governmental Activities General Obligation Bonds 34,555,000$ G.O. Improvement Bonds 56,650,000 Tax increment bonds 1,010,000 State-aid street revenue bonds 5,235,000 Water connection revenue bonds 7,595,000 Arena revenue bonds 170,000 HRA lease revenue bonds 8,695,000 Total governmental activity bonds 113,910,000 Business-type Activities Water revenue bonds 7,030,000 Sewer revenue bonds 440,000 Street light revenue bonds 335,000 Total bonded indebtedness 121,715,000$ Depending on the purpose and financing source of repayment, the City will, in consultation with its financial advisor, select the repayment period and type of debt refinance which best meets its financial objectives. Interest costs have been reduced in recent years with the refinancing of eligible issues. The 2019-2023 Capital Improvement Plan is an important planning document utilized for debt management. The debt is repaid from a myriad of revenue sources including but not limited to special assessments, connection charges, liquor fund revenues, utility fund revenues, ice arena revenues, tax increments, State Aid street payments and property taxes. Approximately 58% of the debt is paid for from property taxes with the remaining 42% paid from non-tax sources. Revenues of $12.30 million are required to pay the debt obligations and related expenses in 2019. 86 DEBT SERVICE FUNDS (continued) Taxes $7,077,820 Connection Charges $614,871  Utility Revenues $525,813  Liquor Revenues $674,100  Municipal  State Aid $731,339  Tax Increment  Financing $404,000 Other $383,337  Special Assessments $1,858,235  2019 Debt Service Revenue Sources $12,269,515 The following is a summary of the principal and interest debt service payments for the coming years for Governmental Activities. The schedule shown below does not include any new debt, debt refinancing or advanced debt retirement which may or may not occur after December 31, 2018. Public Facility General G.O. Tax State-aid Water Arena Lease Year Obligation Improvement Increment Roads Revenue Revenue Obligations Total 2019 3,636,305$ 5,780,706$ 276,761$ 730,889$ 614,325$ 179,180$ 853,250$ 12,071,416$ 2020 3,664,576 6,428,232 271,908 725,345 610,700 - 862,850 12,563,611 2021 3,729,336 6,216,836 276,493 416,379 611,200 - 871,825 12,122,069 2022 3,682,650 5,985,205 270,565 331,144 610,700 - 878,900 11,759,164 2023 3,707,700 5,917,686 - 331,394 609,200 - 879,100 11,445,080 2024-2028 16,696,336 23,052,725 - 1,667,570 3,012,975 - 4,083,475 48,513,081 2029-2033 7,047,386 13,173,374 - 1,670,635 2,901,275 - 2,397,500 27,190,170 2034-2038 - 4,492,322 - 999,376 578,550 - - 6,070,248 Total 42,164,289$ 71,047,086$ 1,095,727$ 6,872,732$ 9,548,925$ 179,180$ 10,826,900$ 141,734,839$ Government Activity Bonds Principal and Interest Payments The City is in compliance with all bond covenants. 87 DEBT SERVICE FUNDS (continued) Legal Debt Limits Minnesota Statutes §475 limits the amount of general obligation debt which is financed solely from property tax levies including Equipment Certificates, Capital Improvement Bonds, Street Reconstruction Bonds and debt approved by referendum. The debt cannot exceed 3% of the taxable market value of the City. Debt excluded from limitations are those for which some other source of revenue is pledged as security including but not limited to improvement bonds, tax increment bonds, utility revenue bonds and revenue bonds. The debt limit calculations are as follows: As of December 31, 2018 Included in debt limits G.O. Street Reconstruction Bonds 12,885,000$ G.O. Capital Improvement Bonds 21,670,000 HRA Ice Arena Lease Revenue Bonds 6,440,000 HRA Lease Revenue Liquor Enterprise Ref Bonds 2,255,000 Total debt subject to debt limits 43,250,000 Excluded from debt limits G.O. Improvement Bonds 56,650,000 G.O. State-aid Street Bonds 5,235,000 G.O. Tax Increment Bonds 1,010,000 G.O. Water Revenue Bonds 7,595,000 Business-Type Revenue Bonds 7,805,000 Ice Arena debt 170,000 Total debt excluded from debt limits 78,465,000 Total bonded indebtedness 121,715,000$ Taxable Market Value (Lakeville, 2018) * 6,702,242,762 Multiply by 3% 3% Legal debt limit (3% of Taxable market value)201,067,283$ Less: G.O. Debt subject to limit (43,250,000) Legal debt margin 157,817,283$ * Source: Dakota County, Payable 2018. Values 88 DEBT SERVICE FUNDS (continued) Credit Rating Aa1 Moody’s Investors Services has affirmed Aa1 underlying rating on the City of Lakeville’s outstanding long-term general obligation debt and the Aa3 underlying rating on the City’s lease revenue debt. In its most recent analysis, Moody’s Investor Service credit report stated “The City of Lakeville (Aa1) benefits from a large and growing tax base located in the Twin Cities metropolitan area, above average resident income indices and a healthy financial profile. The credit attributes are balanced by above average leverage related to long-term debt and pension liabilities. Both of which contribute to higher fixed costs. Refunding Debt In August 2018, the City issued $3.115 million of refunding debt to refinance the G.O. Street Reconstruction Bonds of 2009A. The refinancing has resulted in a net present value savings of $.167 million over the 12-year life of the debt. 89 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 5,809,864$ 5,469,418$ 5,469,417$ 7,077,820$ Tax increment 411,366 404,000 404,000 404,000 Intergovernmental 1,248,595 1,234,234 980,196 731,339 Charges for services 375,220 427,744 381,126 292,100 Special assessments 2,737,377 1,651,164 1,549,867 1,858,235 Investment income 137,497 70,728 95,430 91,237 Donations 95,000 95,000 142,500 - Miscellaneous (188) - - - Total revenues 10,814,731 9,352,288 9,022,536 10,454,731 Expenditures - debt service Principal maturities 6,885,000 7,680,000 7,680,000 8,135,000 Interest on debt 4,064,324 3,925,190 3,948,998 3,936,413 Fiscal charges 2,384,157 27,503 83,397 27,387 Total expenditures 13,333,481 11,632,693 11,712,395 12,098,800 Excess (deficiency) of revenues over expenditures (2,518,750) (2,280,405) (2,689,859) (1,644,069) Other financing sources (uses) Transfer from other funds 3,599,458 1,436,869 1,598,789 1,814,784 Transfer to other funds (256,078) - (260) - Issuance of debt 1,530,000 - 115,645 - Refunding bonds issued 2,255,000 - 3,115,000 - Payment on refunded bonds (11,185,000) (1,740,000) (5,060,000) - Premium on bonds issued 327,887 - 283,652 - Total other financing sources (uses)(3,728,733) (303,131) 52,826 1,814,784 Net change in fund balance (6,247,483) (2,583,536) (2,637,033) 170,715 Fund balance, January 1 26,130,838 18,168,417 19,883,355 17,246,322 Fund balance, December 31 19,883,355 15,584,881$ 17,246,322$ 17,417,037$ CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for All Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 90 General G.O. Tax Water Arena HRA Lease Obligation Improvement Increment State-aid Revenue Revenue Revenue Total Revenues General property taxes 3,238,879$ 3,546,841$ -$ -$ -$ -$ 292,100$ 7,077,820$ Tax increment - - 404,000 - - - 404,000 Intergovernmental - - - 731,339 - - - 731,339 Charges for services - - - - - - 292,100 292,100 Special assessments 14,258 1,843,977 - - - - - 1,858,235 Investment income 13,215 59,512 10,057 3,685 - 916 3,852 91,237 Total revenues 3,266,352 5,450,330 414,057 735,024 - 916 588,052 10,454,731 Expenditures - debt service Principal maturities 2,445,000 3,790,000 240,000 550,000 365,000 170,000 575,000 8,135,000 Interest on debt 1,191,304 1,990,704 36,761 180,889 249,325 9,180 278,250 3,936,413 Fiscal charges 2,057 17,902 2,750 1,290 546 450 2,392 27,387 Total expenditures 3,638,361 5,798,606 279,511 732,179 614,871 179,630 855,642 12,098,800 Excess (deficiency) of revenues over expenditures (372,009) (348,276) 134,546 2,845 (614,871) (178,714) (267,590) (1,644,069) Other financing sources (uses) Transfer from other funds 400,000 525,813 - - 614,871 - 274,100 1,814,784 Net change in fund balance 27,991 177,537 134,546 2,845 - (178,714) 6,510 170,715 Fund balance, January 1 3,327,667 9,251,094 2,904,315 490,959 - 184,462 1,087,825 17,246,322 Fund balance, December 31 3,355,658$ 9,428,631$ 3,038,861$ 493,804$ -$ 5,748$ 1,094,335$ 17,417,037$ Debt Supported Primarily by 2019 Adopted Budget CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 91 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 3,218,208$ 3,244,731$ 3,244,730$ 3,238,879$ Intergovernmental Federal Build America Bonds credit 61,513 58,302 58,742 - Special assessments 16,999 15,467 14,742 14,258 Investment income 27,346 13,563 15,476 13,215 Total revenues 3,324,066 3,332,063 3,333,690 3,266,352 Expenditures - debt service Principal maturities 2,195,000 2,355,000 2,355,000 2,445,000 Interest on debt 1,717,329 1,385,594 1,409,402 1,191,304 Fiscal charges 22,052 2,069 56,901 2,057 Total expenditures 3,934,381 3,742,663 3,821,303 3,638,361 Excess (deficiency) of revenues over expenditures (610,315) (410,600) (487,613) (372,009) Other financing sources (uses) Transfer from Enterprise - Liquor Fund 346,360 300,000 300,000 400,000 Transfer to Debt Service Funds (39,283) - - - Issuance of refunding debt 1,530,000 - 3,115,000 - Payment on refunded bonds called (11,185,000) (1,740,000) (5,060,000) - Premium on bonds issued 231,329 - 283,652 - Total other financing sources (uses) (9,116,594) (1,440,000) (1,361,348) 400,000 Net change in fund balance (9,726,909) (1,850,600) (1,848,961) 27,991 Fund balance, January 1 14,903,537 5,155,734 5,176,628 3,327,667 Fund balance, December 31 5,176,628$ 3,305,134$ 3,327,667$ 3,355,658$ CITY OF LAKEVILLE, MINNESOTA Debt Service - General Obligation Debt Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 92 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 2,298,106$ 1,932,187$ 1,932,187$ 3,546,841$ Special assessments 2,720,378 1,635,697 1,535,125 1,843,977 Investment income 77,166 43,668 62,026 59,512 Total revenues 5,095,650 3,611,552 3,529,338 5,450,330 Expenditures - debt service Principal maturities 2,715,000 3,260,000 3,260,000 3,790,000 Interest on debt 1,538,734 1,729,370 1,729,370 1,990,704 Fiscal charges 23,549 16,258 19,068 17,902 Total expenditures 4,277,283 5,005,628 5,008,438 5,798,606 Excess (deficiency) of revenues over expenditures 818,367 (1,394,076) (1,479,100) (348,276) Other financing sources (uses) Transfer from Capital Projects Improvement Construction Fund 1,644,142 - - - Water Fund - - 114,000 - Enterprise Funds Water Operating Fund 524,794 524,419 524,419 525,813 Transfer to Capital Projects (48,228) - (260) - Issuance of debt - - 115,645 - Total other financing sources (uses)2,120,708 524,419 753,804 525,813 Net change in fund balance 2,939,075 (869,657) (725,296) 177,537 Fund balance, January 1 7,037,315 8,676,092 9,976,390 9,251,094 Fund balance, December 31 9,976,390$ 7,806,435$ 9,251,094$ 9,428,631$ CITY OF LAKEVILLE, MINNESOTA Debt Service - General Obligation Improvement (Special Assessments) Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 93 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues Intergovernmental - State-aid 1,187,082$ 1,175,932$ 921,454$ 731,339$ Investment income 4,586 159 3,640 3,685 Total revenues 1,191,668 1,176,091 925,094 735,024 Expenditures - debt service Principal maturities 940,000 970,000 970,000 550,000 Interest on debt 241,084 205,932 205,932 180,889 Fiscal charges 2,040 1,623 1,290 1,290 Total expenditures 1,183,124 1,177,555 1,177,222 732,179 Excess (deficiency) of revenues over expenditures 8,544 (1,464) (252,128) 2,845 Other financing sources (uses) Transfer from: Debt Service Fund 39,283 - - - Capital Projects Fund 420,679 - 3,151 - Total other financing sources (uses)459,962 - 3,151 - Net change in fund balance 468,506 (1,464) (248,977) 2,845 Fund balance, January 1 271,430 269,974 739,936 490,959 Fund balance, December 31 739,936$ 268,510$ 490,959$ 493,804$ CITY OF LAKEVILLE, MINNESOTA Debt Service - State Aid Street Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 94 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues Tax increment 411,366$ 404,000$ 404,000$ 404,000$ Investment income 24,480 8,958 9,049 10,057 Total revenues 435,846 412,958 413,049 414,057 Expenditures - debt service Principal maturities 220,000 230,000 230,000 240,000 Interest on debt 55,160 46,161 46,161 36,761 Fiscal charges 4,331 2,600 2,750 2,750 Total expenditures 279,491 278,761 278,911 279,511 Excess (deficiency) of revenues over expenditures 156,355 134,197 134,138 134,546 Other financing sources (uses) Transfer to Capital Projects Improvement Construction (146,707) - - - Total other financing sources (uses)(146,707) - - - Net change in fund balance 9,648 134,197 134,138 134,546 Fund balance, January 1 2,760,529 2,723,940 2,770,177 2,904,315 Fund balance, December 31 2,770,177$ 2,858,137$ 2,904,315$ 3,038,861$ CITY OF LAKEVILLE, MINNESOTA Debt Service - Tax Increment Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 95 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues Miscellaneous (188)$ -$ -$ -$ Expenditures - debt service Principal maturities 340,000 345,000 345,000 365,000 Interest on debt 284,200 267,075 267,075 249,325 Fiscal charges 546 375 546 546 Total expenditures 624,746 612,450 612,621 614,871 Excess (deficiency) of revenues over expenditures (624,934) (612,450) (612,621) (614,871) Other financing sources (uses) Transfer from Capital Projects - Water Fund 624,200 612,450 612,621 614,871 Total other financing sources (uses) 624,200 612,450 612,621 614,871 Net change in fund balance (734) - - - Fund balance, January 1 734 - - - Fund balance, December 31 -$ -$ -$ -$ CITY OF LAKEVILLE, MINNESOTA Debt Service - Water Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 96 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues Charges for services 88,626$ 88,626$ 88,626$ -$ Investment income 1,113 1,216 1,394 916 Donations 95,000 95,000 142,500 - Total revenues 184,739 184,842 232,520 916 Expenditures - debt service Principal maturities 155,000 165,000 165,000 170,000 Interest on debt 26,305 18,090 18,090 9,180 Fiscal charges 96 178 450 450 Total expenditures 181,401 183,268 183,540 179,630 Excess (deficiency) of revenues over expenditures 3,338 1,574 48,980 (178,714) Fund balance, January 1 132,144 135,473 135,482 184,462 Fund balance, December 31 135,482$ 137,047$ 184,462$ 5,748$ CITY OF LAKEVILLE, MINNESOTA Debt Service - Arena Revenue Fund For the Year Ending December 31, 2019 Schedule of Revenues, Expenditures, and Changes in Fund Balances 97 Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 293,550$ 292,500$ 292,500$ 292,100$ Charges for services 286,594 339,118 292,500 292,100 Investment income 2,806 3,164 3,845 3,852 Total revenues 582,950 634,782 588,845 588,052 Expenditures - debt service Principal maturities 320,000 355,000 355,000 575,000 Interest on debt 201,512 272,968 272,968 278,250 Fiscal charges/Other 2,331,543 4,400 2,392 2,392 Total expenditures 2,853,055 632,368 630,360 855,642 Excess (deficiency) of revenues over expenditures (2,270,105) 2,414 (41,515) (267,590) Other financing sources (uses) Transfer from Enterprise - Liquor Fund - - 44,598 274,100 Transfer to Enterprise - Liquor Fund (21,860) - - Payment on refunded bonds called - - - - Issuance of refunding debt 2,255,000 - - - Premium on bonds issued 96,558 - - - Total other financing sources (uses) 2,329,698 - 44,598 274,100 Net change in fund balance 59,593 2,414 3,083 6,510 Fund balance, January 1 1,025,149 1,207,204 1,084,742 1,087,825 Fund balance, December 31 1,084,742$ 1,209,618$ 1,087,825$ 1,094,335$ CITY OF LAKEVILLE, MINNESOTA Debt Service - HRA Lease Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 98 CITY OF LAKEVILLE, MINNESOTA COMBINED SCHEDULE OF BONDED INDEBTEDNESS DECEMBER 31, 2018 Interest Issue Call Maturity 12/31/2018 Rates %Date Date Date Outstanding Principal Interest Governmental Activities: General Obligation Bonds: Capital Improvement Refunding Bonds 2012 B 2.00-4.00 Aug-15-12 Feb-01-22 Feb-01-30 11,160,000$ 635,000 342,650 Capital Improvement Refunding Bonds 2014 B 1.75-5.00 Aug-20-14 Feb-01-24 Feb-01-32 10,510,000 580,000 401,613 Street Reconstruction Refunding Bonds of 2012 B 2.00-4.00 Aug-15-12 Feb-01-22 Feb-01-26 6,910,000 765,000 216,050 Street Reconstruction Refunding Bonds of 2014 B 1.75-5.00 Aug-20-14 Feb-01-24 Feb-01-26 1,330,000 140,000 54,113 Improvement Bonds of 2017 A (Refunding of 2007 H)3.00-5.00 Sep-07-17 Feb-01-27 Feb-01-28 1,530,000 100,000 66,500 Street Reconstruction Bonds of 2018B (Refunding of 2009 A) 3.00-5.00 Aug-16-18 Feb-01-28 Feb-01-30 3,115,000 225,000 110,379 Total Capital and Street Bonds 34,555,000 2,445,000 1,191,305 Total General Obligation Bonds 34,555,000 2,445,000 1,191,305 G.O. Improvement Bonds: Improvement Bonds of 2008 A 2.70-3.75 Oct-01-08 n/a Feb-01-19 30,000 30,000 563 Improvement Refunding Bonds of 2009 B 2.00-3.00 Dec-30-09 n/a Feb-01-20 515,000 360,000 10,050 Improvement Refunding Bonds of 2011 A 0.50-3.50 Dec-01-11 Feb-01-21 Feb-01-32 1,085,000 190,000 25,963 Improvement Refunding Bonds of 2012 A 2.00-4.00 Aug-15-12 Feb-01-22 Feb-01-33 4,095,000 550,000 121,825 Improvement Bonds of 2013 A 2.00-4.00 Aug-15-13 Feb-01-23 Feb-01-34 3,305,000 370,000 89,250 Improvement Bonds of 2014 A 2.00-3.50 Aug-20-14 Feb-01-24 Feb-01-35 6,465,000 705,000 215,975 Improvement Bonds of 2015 A 1.75-5.00 Aug-20-15 Feb-01-25 Feb-01-36 10,855,000 510,000 394,350 Improvement Bonds of 2016 B 1.50-5.00 Jul-21-16 Feb-01-26 Feb-01-37 15,145,000 640,000 482,594 Improvement Bonds of 2017 A 3.00-5.00 Sep-07-17 Feb-01-27 Feb-01-38 7,465,000 435,000 312,806 Improvement Bonds of 2018 A 2.50-5.00 Jul-25-18 Feb-01-27 Feb-01-29 7,690,000 - 337,330 Total G.O. Improvement Bonds 56,650,000 3,790,000 1,990,706 Tax Increment Bonds: Tax Increment Refunding Bonds of 2007 A 4.00-4.20 Feb-01-07 Feb-01-16 Feb-01-22 1,010,000 240,000 36,761 Total Tax Increment Bonds 1,010,000 240,000 36,761 State-aid Street Revenue Bonds: State-aid Street Bonds of 2007 G 4.00 Dec-15-07 Apr-01-16 Apr-01-18 - - - State-aid Street Refunding Bonds of 2010 A 2.00-4.00 Jan-01-10 n/a Apr-01-20 605,000 300,000 17,075 State-aid Street Refunding Bonds of 2011 B 0.50-2.15 Dec-01-11 n/a Apr-01-21 230,000 75,000 3,989 State-aid Street Bonds of 2015 A 1.75-5.00 Aug-20-15 Feb-01-25 Feb-01-36 4,400,000 175,000 159,825 Total State-aid Street Revenue Bonds 5,235,000 550,000 180,889 Water Connection Revenue Refunding Bonds of 2016 A 2.00-5.00 Feb-25-16 Feb-01-24 Feb-01-34 7,595,000 365,000 249,325 Arena Revenue Bonds: Gross Revenue Recreation Facility Bonds of 1999 5.30-5.40 Apr-01-99 Callable Aug-01-19 170,000 170,000 9,180 Total Arena Revenue Bonds 170,000 170,000 9,180 HRA Lease Revenue Bonds: HRA Ice Arena Lease Revenue Refunding Bonds of 2016 2.00-4.00 Sep-22-16 Feb-01-26 Feb-01-32 6,440,000 360,000 219,600 HRA Lease Revenue Liquor Enterprise Refunding Bonds of 2017 2.00-3.00 Nov-08-17 Feb-01-25 Feb-01-27 2,255,000 215,000 58,650 Total HRA Lease Revenue Bonds 8,695,000 575,000 278,250 Total Governmental Activity Bonds 113,910,000 8,135,000 3,936,416 Due in 2019 99 Capital Projects Funds The Capital Projects Funds account for financial resources appropriated to the replacement or construction of infrastructure, construction or improvements of capital facilities and the acquisition of equipment, except those financed by Enterprise Funds. Municipal State-aid Street Fund This fund accounts for an annual allotment from the State of Minnesota Municipal State- aid street construction account. Pavement Management Fund The Pavement Management Fund’s primary purpose is to account for pavement management activities relating to cracksealing, patching, and overlays. These major maintenance projects are financed with property taxes. Improvement Construction Fund This fund accounts for the construction of certain public improvements, such as streets, storm sewers, water and sanitary sewer trunk lines. Construction contracts involve multiple financing resources from the City and other government entities. Construction projects usually extend over several years before completion. Storm Water Infrastructure Fund This fund accounts for fees and area charges to land developers to manage, preserve and protect public storm water system infrastructure. Water Fund This fund accounts for revenues derived primarily from connection charges collected at the time building permits are issued. Funds are appropriated towards the construction costs of water supply lines, wells and water storage facilities and the debt service for bonds issued to finance the construction of the City’s water treatment facility and other infrastructure improvements. Sanitary Sewer Fund This fund accounts for sewer connection and area fees charged to land developers for connecting to the City’s sanitary sewer system. Appropriations are applied to the construction of sanitary sewer infrastructure. Park Dedication Fund This fund accounts for park development fees charged to land developers. The expenditures consist of acquiring and developing new City parks and trails. 100 Capital Projects Funds (Continued) Park Improvement Fund This fund accounts for the long term maintenance, repairs and replacement of the City parks. The primary revenue source is property taxes, intergovernmental grants and donations. Trail Improvement Fund This fund accounts for the long term maintenance, repairs and replacement of the City trails. The primary revenue source is property taxes. Tax Increment Fund This fund accounts for revenue received from tax increment property that does not require debt financing. The expenditures are for current and future development of tax increment property. Tax Abatement Fund This fund accounts for economic development assistance provided to local businesses. The expenditures are for current and future economic development incentives. Building Fund This fund accounts for the accumulation and disbursement of funds for the construction or improvement of public buildings. Equipment Fund This fund accounts for the purchase of public safety, street and park maintenance equipment. The most significant capital acquisitions are related to replacing vehicles, heavy machinery, and technology. 101 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 2,051,417$ 2,452,750$ 2,452,750$ 1,527,000$ Tax increment 160,986 160,406 147,314 282,497 Intergovernmental 1,379,601 1,621,098 1,922,272 4,740,892 Charges for services 6,838,068 4,493,134 5,752,027 4,524,213 Special assessments 75,210 76,259 75,096 254,120 Investment income 340,695 194,080 227,519 216,066 Donations 87,387 100,000 143,181 97,500 Miscellaneous 926,947 1,241,374 1,060,540 1,240,522 Total revenues 11,860,311 10,339,101 11,780,699 12,882,810 Expenditures - Capital outlay General government 668,804 835,581 770,613 169,020 Public safety Police 297,432 913,592 904,802 904,766 Fire 330,060 218,502 213,897 15,300 Public works 14,740,021 19,494,899 17,865,433 22,913,998 Parks and recreation 1,654,415 4,703,045 3,260,333 3,631,646 Total expenditures 17,690,732 26,165,619 23,015,078 27,634,730 Excess (deficiency) of revenues over expenditures (5,830,421) (15,826,518) (11,234,379) (14,751,920) Other financing sources (uses) Transfer from other funds 2,947,241 2,385,982 2,856,522 1,619,914 Transfer to other funds (3,674,610) (1,824,154) (2,285,374) (1,193,785) Issuance of debt 8,202,171 11,007,698 8,296,038 13,108,089 Premium on bonds issued 982,020 - - - Total other financing sources (uses)8,456,822 11,569,526 8,867,186 13,534,218 Net change in fund balance 2,626,401 (4,256,992) (2,367,193) (1,217,702) Fund balance, January 1 32,351,866 29,319,470 34,978,267 32,611,074 Fund balance, December 31 34,978,267$ 25,062,478$ 32,611,074$ 31,393,372$ CITY OF LAKEVILLE, MINNESOTA Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2019 Budgetary Summary for All Capital Projects Funds 102 Municipal Pavement Improvement StormSanitary Park Park Trail Tax TaxState-aidManagementConstructionSewerWaterSewerDedicationImprovementImprovementIncrementAbatementBuildingEquipmentTotalRevenuesGeneral property taxes-$ 1,100,000$ -$ -$ -$ -$ -$ 175,000$ -$ -$ -$ -$ 252,000$ 1,527,000$ Tax increment- - - - - - - - - 282,497 - - - 282,497 Intergovernmental3,508,892 120,000 1,077,000 - - - - - - - - - 35,000 4,740,892 Charges for services- - - 1,052,264 1,734,300 306,900 1,430,749 - - - - - - 4,524,213 Special assessments- - - 198 239,922 14,000 - - - - - - - 254,120 Investment income15,800 3,200 - 34,200 59,800 36,700 17,800 - 5,300 200 - 24,735 18,331 216,066 Donations- - - - - - 97,500 - - - - - - 97,500 Miscellaneous231,510 - 460,655 - - - - 24,916 - - - 429,141 94,300 1,240,522 Total revenues3,756,202 1,223,200 1,537,655 1,086,662 2,034,022 357,600 1,546,049 199,916 5,300 282,697 - 453,876 399,631 12,882,810 Expenditures - Capital outlayGeneral government- - - - - - - - - - 13,125 48,245 107,650 169,020 Public safety- Police- - - - - - - - - - - 140,935 763,831 904,766 Fire- - - - - - - - - - - 15,300 - 15,300 Public works4,698,325 1,249,494 15,014,658 651,132 400,000 75,000 - - - - - 246,325 579,064 22,913,998 Parks and recreation- - - - - - 2,453,500 225,000 429,058 251,268 - 101,530 171,290 3,631,646 Total expenditures4,698,325 1,249,494 15,014,658 651,132 400,000 75,000 2,453,500 225,000 429,058 251,268 13,125 552,335 1,621,835 27,634,730 Excess (deficiency) of revenuesover expenditures(942,123) (26,294) (13,477,003) 435,530 1,634,022 282,600 (907,451) (25,084) (423,758) 31,429 (13,125) (98,459) (1,222,204) (14,751,920) Other financing sources (uses)Transfer from other funds190,000 - 368,914 - - - - 150,000 - - - - 911,000 1,619,914 Transfer to other funds- - - (315,000) (878,785) - - - - - - - - (1,193,785) Issuance of debt- - 13,108,089 - - - - - - - - - - 13,108,089 Total other financing sources (uses)190,000 - 13,477,003 (315,000) (878,785) - - 150,000 - - - - 911,000 13,534,218 Net change in fund balance (752,123) (26,294) - 120,530 755,237 282,600 (907,451) 124,916 (423,758) 31,429 (13,125) (98,459) (311,204) (1,217,702) Fund balance, January 12,043,144 633,077 478,284 7,679,028 7,968,108 7,343,311 3,551,828 143,758 1,097,980 27,059 (415,576) 1,198,111 862,962 32,611,074 Fund balance, December 311,291,021$ 606,783$ 478,284$ 7,799,558$ 8,723,345$ 7,625,911$ 2,644,377$ 268,674$ 674,222$ 58,488$ (428,701)$ 1,099,652$ 551,758$ 31,393,372$ CITY OF LAKEVILLE, MINNESOTABudgetary Summary for Capital Projects FundsCombined Schedule of Revenues, Expenditures, and Changes in Fund BalancesFor the Year Ending December 31, 20192019 Adopted Budget103 MUNICIPAL STATE-AID STREET FUND Fund Description: The Municipal State-aid Street Fund accounts for an annual allotment from the State of Minnesota Municipal State-aid street construction account. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Intergovernmental revenues 919,905$ 893,598$ 1,489,272$ 3,508,892$ Charges for services 262,535 - - - Investment income (charges)38,846 15,400 20,700 15,800 Miscellaneous 240,635 462,050 475,080 231,510 Total revenues 1,461,921 1,371,048 1,985,052 3,756,202 Expenditures - Capital outlay Public works 2,295,266 3,995,078 3,540,686 4,698,325 Parks and recreation - - - - Total expenditures 2,295,266 3,995,078 3,540,686 4,698,325 Excess (deficiency) of revenues over expenditures (833,345) (2,624,030) (1,555,634) (942,123) Other financing sources (uses) Transfer from Capital Projects: Water Trunk Fund 83,389 - - - Storm Sewer Trunk Fund 336,101 110,204 326,098 190,000 Pavement Management Fund - - 106,374 Transfer from Enterprise Funds: Sanitary Sewer Operating Fund 3,223 - - - Liquor Fund 1,289 - - - Water Operating Fund 3,223 - - - Environmental Resources Fund 16,230 Transfer from General Fund 24,495 - - - Transfers to: Capital Projects: Improvement Construction Fund (35,505) - - - Transfers to: Debt Service Fund State Aid Street Bonds (420,679) - - - Total other financing sources (uses)(4,464) 110,204 448,702 190,000 Net change in fund balance (837,809) (2,513,826) (1,106,932) (752,123) Fund balance, January 1 3,987,885 3,087,930 3,150,076 2,043,144 Fund balance, December 31 3,150,076$ 574,104$ 2,043,144$ 1,291,021$ For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenditures, and Changes in Fund Balance s Capital Projects - Municipal State-aid Street Fund 104 MUNICIPAL STATE AID STREET FUND Projects 2019 CR 50 Recon (CSAH 60 to CSAH 9) 1,000,000$ CSAH 9/Dodd Blvd & Flagstaff Ave 1,850,000 179th St & Flagstaff Ave 540,000 Dodd Blvd/CSAH 9 and Glacier Way 450,000 CSAH 70/210th St (E of Kensington Blvd - Holyoke Ave)656,250 Dodd Blvd/Gerdine Path 102,075 CR 50 Recon (Holyoke Ave to Cedar Ave)100,000 Total 4,698,325$ Capital Projects - Municipal State-aid Street Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 105 PAVEMENT MANAGEMENT FUND Fund Description: The Pavement Management Fund primary purpose is to account for major maintenance projects which are financed with property taxes. Accounting for pavement management activities in a designated fund enables the City Council to establish a relatively stable tax levy. The fund activities account for maintenance costs which would otherwise be accounted for in the operating budget. The Pavement Management Fund enables the City to establish a long-term maintenance program and financing plan which, when taken into consideration with the street reconstruction program, enables the City to develop a consistent long-term financing plan for one of the community’s most significant infrastructure assets. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 1,191,550$ 1,191,550$ 1,191,550$ 1,100,000$ Intergovernmental revenue 120,000 120,000 120,000 120,000 Special assessments 5,025 - - - Investment income (charges)9,897 4,200 4,200 3,200 Total revenues 1,326,472 1,315,750 1,315,750 1,223,200 Expenditures - Capital outlay Public works 1,193,191 1,431,155 1,431,155 1,249,494 Total expenditures 1,193,191 1,431,155 1,431,155 1,249,494 Excess (deficiency) of revenues over expenditures 133,281 (115,405) (115,405) (26,294) Other financing sources (uses) Transfer to Equipment Fund (100,000) (85,000) (85,000) - Transfer to MSA Fund - - (106,374) - Transfer to Improv. Const Fund (244,142) - - - Total other financing sources (uses)(344,142) (85,000) (191,374) - Net change in fund balance (210,861) (200,405) (306,779) (26,294) Fund balance, January 1 1,150,717 848,372 939,856 633,077 Fund balance, December 31 939,856$ 647,967$ 633,077$ 606,783$ For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenditures, and Changes in Fund Balance s Capital Projects - Pavement Management Fund 106 PAVEMENT MANAGEMENT FUND (continued) Projects 2019 Patching & minor overlays 829,302$ Safety improvements 30,000 Crack sealing 152,082 Velocity patching 118,110 Other 120,000 Total 1,249,494$ Capital Projects - Pavement Management Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 107 IMPROVEMENT CONSTRUCTION FUND Fund Description: The Improvement Construction Fund accounts for the construction of certain public improvements, such as streets and storm sewers. The City Council has approved a street reconstruction program that replaces aging street infrastructure. Benefited property owners are specially assessed for 40% of the cost with the remaining 60% paid by the City with property taxes. The financing of the improvements is accomplished with the issuance of General Obligation Improvement Bonds. The special assessments and taxes are pledged to the repayment of the debt. The debt is proposed to be amortized over a 10-year period to mitigate the impact of tax increases on business and residents. 108 IMPROVEMENT CONSTRUCTION FUND (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 50,000$ 50,000$ 50,000$ -$ Intergovernmental 335,460 457,500 - 1,077,000 Charges for services - - 9,799 - Escrow - 165,815 - 460,655 Investment income (charges)20,226 - 24,639 - Total revenues 405,686 673,315 84,438 1,537,655 Expenditures - Capital outlay Public works 9,100,353 12,086,013 9,359,862 15,014,658 Total expenditures 9,100,353 12,086,013 9,359,862 15,014,658 Excess (deficiency) of revenues over expenditures (8,694,667) (11,412,698) (9,275,424) (13,477,003) Other financing sources (uses) Transfer from General Fund 1,179 150,000 150,000 - Transfer from Capital Projects Municipal State-aid Fund 35,506 - - - Sanitary Sewer Trunk Fund - - - Storm Water Infrastructure Fund 7,447 - 67,185 105,000 Water Trunk Fund - - 263,914 Tax Increment Fund 304,852 - - - Pavement Management Fund 244,142 - - - Transfer from Enterprise Funds Sanitary Sewer Operating Fund - - 14,498 - Water Operating Fund - 230,000 254,099 - Transfer from Debt Service 48,228 - 260 - Transfer from Special Revenue Communications Fund - 175,000 175,000 - Transfer to Enterpise Funds Water Operating Fund - - (137,445) - Transfer to Debt Service (1,644,142) - (3,151) - Issuance of debt 8,202,171 11,007,698 7,574,355 13,108,089 Premium on bonds issued 982,020 - 721,683 - Total other financing sources (uses)8,181,403 11,562,698 8,816,484 13,477,003 Net change in fund balance (513,264) 150,000 (458,940) - Fund balance, January 1 1,450,488 937,224 937,224 478,284 Fund balance, D ecember 31 937,224$ 1,087,224$ 478,284$ 478,284$ For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenditures, and Changes in Fund Balance s Capital Projects - Improvement Construction Fund 109 IMPROVEMENT CONSTRUCTION FUND (continued) Projects 2019 Street Reconstruction 8,217,794$ Collector Road Reconstruction 6,796,864 Total 15,014,658$ Capital Projects - Improvement Construction Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 110 STORM WATER INFRASTRUCTURE FUND Fund Description: The Storm Water Infrastructure Fund accounts for fees and area charges to land developers to manage, preserve and protect public storm water system infrastructure. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Intergovernmental 4,236$ 150,000$ 189,000$ -$ Charges for services 1,255,985 1,052,264 1,854,451 1,052,264 Special assessments 217 208 104 198 Investment income 65,596 28,500 28,500 34,200 Total revenues 1,326,034 1,230,972 2,072,055 1,086,662 Expenditures - Capital outlay Public works 356,058 826,132 1,125,615 651,132 Excess (deficiency) of revenues over expenditures 969,976 404,840 946,440 435,530 Other financing sources (uses) Transfer from Enterprise Fund- Env Resources Fund - - 26,000 - Transfer to Capital Proj. - Improv Const (7,447) - (67,185) (105,000) Capital Proj. - Municipal State Aid (336,101) (110,204) (326,098) (190,000) Utility Fund- Environmental Resources (20,859) (252,000) (69,000) (20,000) Total other financing sources (uses)(364,407) (362,204) (436,283) (315,000) Net change in fund balance 605,569 42,636 510,157 120,530 Fund balance, January 1 6,563,302 5,694,493 7,168,871 7,679,028 Fund balance, December 31 7,168,871$ 5,737,129$ 7,679,028$ 7,799,558$ Schedule of Revenues, Expenditures, and Changes in Fund Balance s For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Capital Projects - Storm Water Infrastructure Fund 111 STORM WATER INFRASTRUCTURE FUND Projects 2019 James Jensen Stormwater Management 25,000$ Stormwater Conveyance System Expansion (general) 100,000 Developer credits 526,132 Total 651,132$ Capital Projects - Storm Water Infrastructure Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 112 WATER FUND Fund Description: The Water Fund accounts for revenues derived primarily from connection charges collected at the time building permits are issued. Funds are committed toward the construction costs of water supply lines, wells and water storage facilities, and provide the debt service for bonds issued to finance the construction of the City’s water treatment facility and other infrastructure improvements. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Charges for services 3,143,470$ 1,726,100$ 2,109,450$ 1,734,300$ Special assessments 25,709 62,000 62,000 239,922 Investment income 66,350 37,100 37,100 59,800 Miscellaneous 358,937 - - - Total revenues 3,594,466 1,825,200 2,208,550 2,034,022 Expenditures - Capital outlay Public works 836,001 300,000 1,491,666 400,000 Excess (deficiency) of revenues over expenditures 2,758,465 1,525,200 716,884 1,634,022 Other financing sources (uses) Transfer to Debt Service - Water Revenue (624,200) (612,450) (726,621) (614,871) Capital Proj. - Impr. Constr. - - - (263,914) Capital Proj. - Municipal State Aid (83,389) - - - Issuance of debt - - - - Total other financing sources (uses)(707,589) (612,450) (726,621) (878,785) Net change in fund balance 2,050,876 912,750 (9,737) 755,237 Fund balance, January 1 5,926,969 4,952,326 7,977,845 7,968,108 Fund balance, December 31 7,977,845$ 5,865,076$ 7,968,108$ 8,723,345$ Schedule of Revenues, Expenditures, and Changes in Fund Balance s For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Capital Projects - Water Fund 113 WATER FUND (continued) Projects 2019 Well construction 100,000$ Developer credits 300,000 Total 400,000$ Capital Projects - Water Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 114 SANITARY SEWER FUND Fund Description The Sanitary Sewer Fund accounts for sewer connection and area fees charged to land developers for connecting to the City’s sanitary sewer system. Appropriations are applied to the construction of sanitary sewer infrastructure. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Charges for services 1,017,356$ 348,150$ 724,050$ 306,900$ Special assessments 44,204 14,000 12,941 14,000 Investment income (charges)60,014 31,000 34,400 36,700 Total revenues 1,121,574 393,150 771,391 357,600 Expenditures - Capital outlay Public works 36,327 230,875 313,000 75,000 Net change in fund balance 1,085,247 162,275 458,391 282,600 Fund balance, January 1 5,799,673 6,193,190 6,884,920 7,343,311 Fund balance, December 31 6,884,920$ 6,355,465$ 7,343,311$ 7,625,911$ Schedule of Revenues, Expenditures, and Changes in Fund Balance s For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Capital Projects - Sanitary Sewer Fund Projects 2019 Developer credits 75,000$ Total Projects 75,000$ Capital Projects - Sanitary Sewer Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 115 PARK DEDICATION FUND Fund Description: The Park Dedication Fund accounts for park dedication fees received from land developers. The expenditures consist of acquiring and developing new City parks and trails. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Charges for services 1,154,433$ 1,366,620$ 1,048,277$ 1,430,749$ Special assessments 55 51 51 - Investment income 46,924 25,600 25,600 17,800 Donations 87,387 100,000 80,000 97,500 Miscellaneous 42,743 - - - Total revenues 1,331,542 1,492,271 1,153,928 1,546,049 Expenditures - Capital outlay Parks and recreation 649,355 3,592,000 2,101,907 2,453,500 Excess (deficiency) of revenues over expenditures 682,187 (2,099,729) (947,979) (907,451) Other financing sources (uses) Transfer to: Trail Improvement Fund - (764,500) (764,500) - Total other financing sources (uses)- (764,500) (764,500) - Net changes in fund balances 682,187 (2,864,229) (1,712,479) (907,451) Fund balance, January 1 4,582,120 5,129,083 5,264,307 3,551,828 Fund balance, December 31 5,264,307$ 2,264,854$ 3,551,828$ 2,644,377$ Schedule of Revenues, Expenditures, and Changes in Fund Balance s For the Year Ending December 31, 2019 CITY OF LAKEVILLE, MINNESOTA Capital Projects - Park Dedication Fund 116 PARK DEDICATION FUND (continued) Projects 2019 Major Construction King Park drainage systems 177,000$ King Park field irrigation 230,000 Antlers Park 812,500 Quigley Sime Shelter 50,000 Land acquisition Future land acquisition 350,000 Trail Construction Trail connectivity 100,000 New trail lighting 173,000 Developer credits 435,000 Other 126,000 Total 2,453,500$ Capital Projects - Park Dedication Fund Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA 117 PARK IMPROVEMENT FUND Fund Description: The Park Improvement Fund accounts for the long term maintenance, repairs and replacement of the City parks. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 175,000$ 175,000$ 175,000$ 175,000$ Investment income 414 - - - Miscellaneous - 24,916 24,916 24,916 Total revenues 175,414 199,916 199,916 199,916 Expenditures - Capital outlay Parks and recreation 232,817 190,000 190,000 225,000 Excess (deficiency) of revenues over expenditures (57,403) 9,916 9,916 (25,084) Other financing sources (uses) Transfer from General Fund - 125,000 125,000 150,000 Total other financing sources (uses)- 125,000 125,000 150,000 Net changes in fund balances (57,403) 134,916 134,916 124,916 Fund balance, January 1 66,245 6,545 8,842 143,758 Fund balance, December 31 8,842$ 141,461$ 143,758$ 268,674$ CITY OF LAKEVILLE, MINNESOTA Capital Projects - Park Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance s For the Year Ending December 31, 2019 118 PARK IMPROVEMENT FUND (continued) Projects 2019 Cherryview playground replacement 87,500$ Dodd Pointe playground replacement 87,500 Orchard Lake Beach shelter 50,000 Total 225,000$ Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA Capital Projects - Park ImprovementFund 119 TRAIL IMPROVEMENT FUND Fund Description: The Trail Improvement Fund accounts for the long term maintenance, repairs and replacement of the City trails. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 129,304$ 111,200$ 111,200$ -$ Intergovernmental grants - - 124,000 - Investment income 4,860 1,600 1,700 5,300 Total revenues 134,164 112,800 236,900 5,300 Expenditures - Capital outlay Parks and recreation 330,243 294,200 353,058 429,058 Total expenditures 330,243 294,200 353,058 429,058 Excess (deficiency) of revenues over expenditures (196,079) (181,400) (116,158) (423,758) Other financing sources (uses) Transfer from General Fund - 100,000 100,000 - Transfer from Park Dedication Fund - 764,500 764,500 - Total other financing sources (uses)- 864,500 864,500 - Net change in fund balance (196,079) 683,100 748,342 (423,758) Fund balance, January 1 545,717 329,461 349,638 1,097,980 Fund balance, December 31 349,638$ 1,012,561$ 1,097,980$ 674,222$ CITY OF LAKEVILLE, MINNESOTA Capital Projects - Trail Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance s For the Year Ending December 31, 2019 120 TRAIL IMPROVEMENT FUND (continued) Projects 2019 Trail sealcoating 70,000$ Trail sealcoating - 2018 Carryover 35,000 Quail Meadows Park Trails (reclamation)37,500 N Creek Trail- E from Flagstaff to N Creek MHP (reclaim) 113,875 E side Flagstaff Ave- Firelight Way to Dodd (reclaim)123,250 Engineering costs for reclam./overlay proj 18%49,433 Total 429,058$ CITY OF LAKEVILLE, MINNESOTA Capital Projects - Trail Improvement Fund Schedule of Capital Outlay 121 TAX INCREMENT FUND Fund Description: The Tax Increment Fund accounts for revenue received from tax increment property that does not require debt financing. The expenditures are for current and future development of tax increment property. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues Tax increment 160,986$ 160,406$ 147,314$ 282,497$ Charges for services 4,289 - 6,000 - Investment income 386 200 200 200 Total revenues 165,661 160,606 153,514 282,697 Expenditures - Capital outlay General government 167,441 155,172 145,349 251,268 Excess (deficiency) of revenues over expenditures (1,780) 5,434 8,165 31,429 Other financing sources (uses) Transfer from Economic Development Fund 9,784 - - - General Fund 6,099 - - - Transfer to Improvement Construction Fund (158,146) - - - Total other financing sources (uses)(142,263) - - - Net change in fund balance (144,043) 5,434 8,165 31,429 Fund balance, January 1 162,937 20,079 18,894 27,059 Fund balance, December 31 18,894$ 25,513$ 27,059$ 58,488$ CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenditures and Changes in Fund Balances Capital Projects - Tax Increment Fund For the Year Ending December 31, 2019 122 TAX ABATEMENT FUND Fund Description: The City has two pay-as-you go tax increment financing districts with local businesses to promote economic development within the City. The related revenues and expenditures are accounted for in the Tax Abatement Fund. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues* Expenditures - Capital outlay General government 13,124 13,125 13,125 13,125 Excess (deficiency) of revenues over expenditures (13,124) (13,125) (13,125) (13,125) Net change in fund balance (13,124) (13,125) (13,125) (13,125) Fund balance, January 1 (389,327) (402,452) (402,451) (415,576) Fund balance, December 31 (402,451)$ (415,577)$ (415,576)$ (428,701)$ * Tax abatement revenues are anticipated to commence in 2023. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Tax Abatement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ending December 31, 2019 123 BUILDING FUND Fund Description: The Building Fund accounts for the accumulation and disbursement of funds for the construction or improvement of public buildings. Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 150,000$ 400,000$ 400,000$ -$ Investment income 8,397 14,076 14,076 24,735 Donations - - 63,181 - Miscellaneous 5,100 363,593 363,593 429,141 Total revenues 163,497 777,669 840,850 453,876 Expenditures - Capital outlay General government 97,973 149,500 139,791 48,245 Public safety Police 46,233 135,648 127,354 140,935 Fire 21,111 40,350 25,489 15,300 Public works 94,103 46,000 35,992 246,325 Parks and recreation 199,558 365,635 349,219 101,530 Total expenditures 458,978 737,133 677,845 552,335 Excess (deficiency) of revenues over expenditures (295,481) 40,536 163,005 (98,459) Other financing sources (uses) Transfer from General Fund 200,000 322,162 322,162 - Total other financing sources 200,000 322,162 322,162 - Net change in fund balance (95,481) 362,698 485,167 (98,459) Fund balance, January 1 808,425 713,008 712,944 1,198,111 Fund balance, December 31 712,944$ 1,075,706$ 1,198,111$ 1,099,652$ CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenditures, and Changes in Fund Balance s Capital Projects - Building Fund For the Year Ending December 31, 2019 124 BUILDING FUND (continued) Projects 2019 City Hall 48,245$ Heritage Center 37,905 Arts Center 63,625 Police 140,935 Fire 15,300 Central Maintenance Facility 179,325 Public Works Storage Facility 67,000 Total 552,335$ Schedule of Capital Outlay CITY OF LAKEVILLE, MINNESOTA Capital Projects - Building Fund 125 EQUIPMENT FUND Fund Description: The Equipment Fund accounts for the purchase of public safety, engineering, street and park maintenance equipment. The most significant capital acquisitions are related to replacing vehicles, machinery, and technology. All departments evaluated the overall condition of the City’s fleet and equipment. In many cases, the expected useful life of these assets has been extended on the condition that there was no adverse increase in repairs or operating costs. Equipment acquisition for general government purposes, such as police, fire, streets, engineering, parks, and technology are financed in part by non-tax revenues such as Liquor Fund contributions and sale of assets. 126 EQUIPMENT FUND (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Revenues General property taxes 355,563$ 525,000$ 525,000$ 252,000$ Intergovernmental - - - 35,000 Investment income 18,785 36,404 36,404 18,331 Miscellaneous 279,532 225,000 196,951 94,300 Total revenues 653,880 786,404 758,355 399,631 Expenditures - Capital outlay General government 390,266 517,784 472,348 107,650 Public safety Police 251,199 777,944 777,448 763,831 Fire 308,949 178,152 188,408 - Public works 828,722 579,646 567,457 579,064 Parks and recreation 242,442 261,210 266,149 171,290 Total expenditures 2,021,578 2,314,736 2,271,810 1,621,835 Excess (deficiency) of revenues over expenditures (1,367,698) (1,528,332) (1,513,455) (1,222,204) Other financing sources (uses) Transfer from General Fund 1,445,000 - - 480,000 Pavement Management 100,000 85,000 85,000 - Enterprise -Utility Fund 93,284 74,116 74,116 31,000 Enterprise - Liquor Fund - 250,000 250,000 400,000 Total other financing sources (uses)1,638,284 409,116 409,116 911,000 Net change in fund balance 270,586 (1,119,216) (1,104,339) (311,204) Fund balance, January 1 1,696,715 1,810,211 1,967,301 862,962 Fund balance, December 31 1,967,301$ 690,995$ 862,962$ 551,758$ CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenditures, and Changes in Fund Balance s Capital Projects - Equipment Fund For the Year Ending December 31, 2019 127 Enterprise Funds Enterprise Funds account for liquor, water, sanitary sewer, street light, and environmental resources operations for the City. They are self-supporting from retail sales and user charges. Operations are managed in much the same way as private enterprises. Liquor Fund This fund accounts for revenues and expenses related to the operation of Lakeville’s municipal off-sale liquor stores. Utility Fund This fund accounts for revenues and expenses related to water service, sanitary sewer service, street lighting, and environmental resources maintenance provided to the community. 128 LIQUOR FUND Fund Description: The Liquor Fund is responsible for controlling the sale of off-sale alcoholic beverages, while generating revenue for the community. This includes abiding by all State Statutes regarding the legal sale of alcohol, offering competitive pricing, while providing superior product selection and customer service. Of the 195 cities operating municipal liquor stores in Minnesota, Lakeville continues to have the highest revenues and highest gross profit. Services:  Control the sale of alcoholic beverages. The City is committed to restricting youth access to alcohol. Employees are also trained in how to observe and decline sales to obviously intoxicated individuals.  Lakeville is committed to quality customer service. Product selection is continually evolving and is the lifeblood that drives the industry. Wine specifically is a hallmark for Lakeville. Store ambiance, strategic location of stores and customer satisfaction are deemed a high priority.  Profits are dedicated to the reduction of property taxes. Liquor Fund net proceeds are committed to financing capital improvements which would otherwise be financed with property taxes.  Asset management and inventory integrity plays an essential role in profitability. The retail liquor industry is highly competitive. Inventory controls as well as policies that include well-defined checks and balances ensure assets are controlled, while the management team and point of sale operations enable Lakeville to maintain a high rate of return on investment through effective marketing strategies. Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Operations Director 1.0 1.0 1.0 1.0 Assistant Operations Director 1.0 1.0 1.0 1.0 Administrative Services Manager 0.4 0.0 0.0 0.0 Store Manager 3.0 3.0 3.0 3.0 Inventory Control Technician 1.0 1.0 1.0 1.0 Assistant Store Manager 6.0 6.0 6.0 6.0 Lead Sales Associate 3.9 3.9 3.9 3.9 Sales Associate 9.8 8.9 8.9 8.9 Total 26.1 24.8 24.8 24.8 129 LIQUOR FUND (continued) Budget Summary: 2018 2019 2017 Amended 2018 Adopted Actual Budget Estimate Budget Sales and cost of sales Sales 14,583,514$ 15,003,435$ 15,089,651$ 15,360,906$ Cost of sales 11,005,245 11,307,073 11,374,268 11,583,628 Gross profit 3,578,269 3,696,362 3,715,383 3,777,278 Operating expenses Personnel services 1,540,328 1,693,665 1,645,269 1,736,357 Commodities 56,273 77,818 77,110 79,362 Other charges and services 786,194 1,037,408 990,940 1,087,236 Total operating expenses 2,382,795 2,808,891 2,713,319 2,902,955 Operating income 1,195,474 887,471 1,002,064 874,323 Non-operating revenue (expense) Intergovernmental 6,716 3,900 3,900 3,900 Investment income 5,935 19,110 19,110 19,110 Miscellaneous - 3,600 2,816 2,816 Disposal of assets (net)(7,340) 1,799,601 1,585,332 - Total non-operating (net)5,311 1,826,211 1,611,158 25,826 1,200,785 2,713,682 2,613,222 900,149 Transfers to other funds (1,345,322) (884,312) (921,818) (1,335,968) Transfers from other funds 809,069 - - - Bond expense (105,176) - - - Depreciation (135,482) (93,345) (100,088) (85,286) (776,911) (977,657) (1,021,906) (1,421,254) Change in net position 423,874 1,736,025 1,591,316 (521,105) Net position, January 1 3,942,455 4,366,329 4,366,329 5,957,645 Net position, December 31 4,366,329$ 6,102,354$ 5,957,645$ 5,436,540$ Capital outlay acquisitions 56,272$ 7,300$ -$ 79,785$ Bond proceeds -$ -$ -$ -$ Debt principal payments (190,000)$ -$ -$ -$ Income before transfers, bond expense, and depreciation Total transfers, bond expense and depreciation CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenses and Changes in Net Position Enterprise - Liquor Fund For the Year Ending December 31, 2019 130 LIQUOR FUND (continued) Contributions (transfers) to other funds: The Liquor Fund budget will make the following contributions to other funds in the coming year, many of which result in a corresponding decrease in the tax levy: Liquor Contributions 2019 Equipment Fund-various non-liquor store capital equipment 400,000$ Debt - Police Station bonds 400,000 Debt- Galaxie store bonds 274,000 General operations 159,000 Communicatins Fund (Marketing Specialist and fiber project)99,000 Community recycling 5,000 1,337,000$ Debt: The Liquor Fund refunded $2.5 million of debt in 2017. The bonds were refunded with $2.3 million Housing and Redevelopment Authority (HRA) Lease Revenue Liquor Enterprise Refunding Bond Series, 2017A. The debt is held by the HRA and is not included in the Liquor Fund. All future debt payments will be made by the HRA and funded with lease revenue payments form the Liquor Fund operations. 131 UTILITY FUND Overall Fund Description: The Utility Fund is responsible for the operation of a 26.50 million gallon per day water treatment facility and the associated water collection and distribution system to provide potable water to Lakeville residents and businesses. The City is also responsible for the collection and transmission of sewage to wastewater treatment plants managed by the Metropolitan Council Environmental Services (MCES). The Utility Fund budget is effectively managed by budgeting water, sanitary sewer, street lighting and environmental resources as separate operations. Individual schedules for revenues, expenses, changes in net assets are provided for each of the respective operations. The combining of these operations comprises the Utility Fund which is presented in the Utility Fund Schedule of Revenues, Expenses and Changes in Net Assets. Services:  Water. The water system includes operation and maintenance of 19 wells, 6 water storage facilities with a total capacity of 11.85 million gallons, 8 pressure reducing stations, 3 reservoirs, water treatment plant, and 346 miles of water distribution system.  Sanitary sewer. The sanitary sewer system includes maintenance of 260 miles of sanitary sewer and force mains, and 20 lift stations and 3 grinder stations, which transmit effluent to the MCES Empire Treatment Facility.  Street lighting. The street lighting system is operated and maintained by Xcel Energy and Dakota Electric Association (DEA). The City of Lakeville bills customers on a quarterly basis for lighting.  Environmental Resources. This fund accounts for the surface water management operations and forestry program which manage, promotes and protects the City’s natural resources. Recycling programs are also accounted for under this program and promotes education, reduction/reusing and recycling efforts. Recycling programs are funded by a grant from Dakota County. 132 UTILITY FUND Overall (continued) Staffing: Position (FTE) 2017 Actual 2018 Budget 2018 Estimate 2019 Budget Public Works Director 1.0 1.0 1.0 1.0 Utilities Superintendent 1.0 1.0 1.0 1.0 Utilities Supervisor 1.0 1.0 1.0 1.0 P.W. Analyst / Safety Specialist 1.0 1.0 1.0 1.0 Utility Lead Maintenance 1.0 1.0 1.0 1.0 Utility Maintenance II 11.8 12.0 12.0 12.0 Utility Billing Technician 2.0 2.0 2.0 2.0 Administrative Assistant Environmental Resources Manager Environmental Resources Specialist 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Environmental Resources Technician 1.0 1.0 1.0 1.0 Forester (part-time) 0.3 0.7 0.7 0.7 Total 23.1 23.7 23.7 23.7 City staff prepared a Water and Sanitary Sewer rate analysis to determine the appropriate rates. The City Council approved a 2019 rate increase based on the recommendation contained in the analysis. Customer rate increases are a result of increases in operating costs. Water adjustments will finance upgrades to the water infrastructure. Sewer adjustment will finance upgrades to the sewer infrastructure and the Metropolitan Council’s rate increase. Street lighting adjustment will finance the electric company rate increases. The Environmental Resources fee will offset costs associated with environmental and forestry related programs. 2019 Fee Structure Basis Adopted Increase Water base Account 7.25$ 0.35$ Water tier 1 (<30 thousand gallons) Gallonage 1.45$ 0.07$ Water tier 2 (30 - 49 thousand gallons) Gallonage 2.30$ 0.11$ Water tier 3 (>49 thousand gallons) Gallonage 3.94$ 0.19$ State of MN water testing fee Connection 1.59$ -$ Sanitary sewer base Account 9.05$ 0.67$ Sanitary sewer usage (1,000 gallons) Gallonage 4.48$ 0.33$ Sanitary sewer non-metered accounts Account 89.69$ 6.59$ Street lights (residential)Account 9.12$ 0.27$ Street lights (non-residential)Front foot 0.2551$ 0.0074$ Environmental resources fee REU 14.38$ 3.96$ REU – Residential Equivalent Unit 133 UTILITY FUND Overall (continued) Rates listed above are on a per quarter basis for residential unless noted otherwise. Commercial and industrial rates are similar to residential rates with the exception of irrigation sprinkler accounts are billed at the residential water tier 3. Environmental Resources management fee is based on the residential equivalent unit. The REU is that portion of a customer’s facility that has an impact on the storm sewer system equivalent to a single family residence. The determination of a facility’s REU shall be based on dwelling units. 134 UTILITY FUND Overall (continued) Budget Summary – Utility Fund: 2018 2019 2017 Adopte d 2018 Adopte d Actual Budget Estimate Budget Operating revenues User charges for services 12,369,308$ 12,575,067$ 12,951,630$ 14,264,978$ Other 216,142 153,137 231,830 231,830 Total operating revenue 12,585,450 12,728,204 13,183,460 14,496,808 Operating expenses Personnel services 2,237,784 2,425,036 2,356,018 2,514,460 Commodities 358,807 446,389 439,618 470,650 Other charges and services 3,053,876 3,219,246 3,133,276 3,567,180 Disposal charges 3,509,576 4,018,012 4,018,840 4,174,432 Major maintenance 463,436 2,571,515 3,023,510 3,163,114 Total operating expenses 9,623,479 12,680,198 12,971,262 13,889,836 Operating income (expense)2,961,971 48,006 212,198 606,972 Non-operating revenue Intergovernmental 166,226 236,264 47,446 275,924 Investment income 85,537 56,228 63,473 66,431 Disposal of assets (10,388) 9,750 (20,000) (20,000) Total non-operating revenue 241,375 302,242 90,919 322,355 3,203,346 350,248 303,117 929,327 Contributed capital 9,256,100 1,100,000 1,100,000 1,100,000 Transfers from other funds 23,341 278,872 232,445 48,690 Transfers to other funds (1,127,665) (1,362,520) (1,413,113) (1,099,493) Bond expense (202,735) (294,286) (306,468) (325,514) Depreciation (4,295,521) (3,460,231) (4,372,649) (4,453,351) 3,653,520 (3,738,165) (4,759,785) (4,729,668) Change in net position 6,856,866 (3,387,917) (4,456,668) (3,800,341) Net position, January 1 135,052,446 132,265,061 141,909,312 137,452,644 Net position, December 31 141,909,312$ 128,877,144$ 137,452,644$ 133,652,303 Capital outlay acquisitions 348,274$ 249,267$ 130,886$ 119,268$ Bond proceeds 1,665,000$ 1,066,190$ 445,000$ 1,430,000$ Debt principal payments -$ 380,000$ 380,000$ 480,000$ CITY OF LAKEVILLE, MINNESOTA For the Year Ending December 31, 2019 Income (loss) before contributions, transfers, and depreciation Total contributions, transfers, and depreciation (net) Enterprise - Utility Fund Schedule of Revenues, Expenses and Changes in Net Position 135 UTILITY FUND Water Operation Program Description: The Water Operation is a collection, treatment, storage, and distribution system that delivers potable water to over 20,800 residential, commercial, institutional, and industrial properties. The system also accounts for all costs related to the operation and maintenance of 19 wells, 8 pressure reducing stations, 6 towers, 3 reservoirs, water treatment plant, and 346 miles of water distribution system.  Services – Water Operation: Collect, treat, and distribute potable water to meet the needs of residential, commercial, institutional, and industrial customers.  Monitor and ensure water quality and compliance with U.S. Environmental Protection Agency and Minnesota Department of Health requirements.  Operate and maintain 19 well stations. Treat ground water with chemicals to remove iron and manganese and improve the taste.  Maintain 346 miles of water main. Repair water main breaks. Inspect and approve new water main construction. Exercise fire hydrants annually.  Operate a 26.50 million gallon per day water treatment plant.  Locate underground utility structures, water main, and residential curb stops.  Enforce water restrictions pursuant to approved operations policy. 136 UTILITY FUND Water Operation (continued) Budget Summary - Water Operation: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Operating revenues User charges for services 4,782,687$ 4,536,178$ 4,860,843$ 5,144,657$ Other 216,142 153,137 231,830 231,830 Total operating revenue 4,998,829 4,689,315 5,092,673 5,376,487 Operating expenses Personnel services 1,091,559 1,197,884 1,140,819 1,215,031 Commodities 279,825 326,274 318,976 350,868 Other charges and services 1,029,288 1,233,995 1,253,879 1,253,016 Major maintenance 463,436 1,901,515 1,945,226 1,958,114 Total operating expenses 2,864,108 4,659,668 4,658,900 4,777,029 Operating income (loss)2,134,721 29,647 433,773 599,458 Non-operating revenue Intergovernmental 11,144 1,632 1,632 1,632 Investment income 48,078 31,486 32,386 36,308 Disposal of assets (56,497) 4,500 (10,000) (10,000) Total non-operating revenue 2,725 37,618 24,018 27,940 2,137,446 67,265 457,791 627,398 Contributed capital 6,663,753 600,000 600,000 600,000 Bond expense (187,359) (259,886) (271,674) (294,667) Transfers from other funds - - 137,445 - Transfers to other funds (722,299) (950,024) (959,006) (695,339) Depreciation (2,672,221) (2,200,000) (2,720,852) (2,770,617) 3,081,874 (2,809,910) (3,214,087) (3,160,623) Change in net position 5,219,320 (2,742,645) (2,756,296) (2,533,225) Net position, January 1 86,162,555 84,173,321 91,381,875 88,625,579 Net position, December 31 91,381,875$ 81,430,676$ 88,625,579$ 86,092,354$ Capital outlay acquisitions 107,242$ 139,078$ 52,072$ 67,739$ Bond proceeds 835,000$ 1,066,190$ 445,000$ 1,430,000$ Debt principal payments -$ 325,000$ 325,000$ 395,000$ CITY OF LAKEVILLE, MINNESOTA For the Year Ending December 31, 2019 Income (loss) before contributions, transfers, and depreciation Total contributions, transfers, and depreciation (net) Enterprise - Utility Fund (Water Operation) Schedule of Revenues, Expenses and Changes in Net Position 137 UTILITY FUND Sanitary Sewer Operation Program Description: The Sanitary Sewer Operation is a collection and forwarding system that removes wastewater from residential, commercial, institutional, and industrial properties. The system also accounts for all costs associated with the operation and maintenance of lift stations and sanitary sewer mains. The treatment facility operations are the responsibility of the Metropolitan Council Environmental Services (MCES). Services - Sanitary Sewer Operation:  Clean, televise, and evaluate approximately 70-80 miles of sanitary sewer main each year and make repairs as necessary.  Inspect manholes for groundwater infiltration and seal the structures to eliminate the problem.  Evaluate portions of the sanitary sewer system for surface water inflow and groundwater infiltration (I&I) problems and perform any necessary repairs to correct the problem.  Operate and maintain lift stations. 138 UTILITY FUND Sanitary Sewer Operation (continued) Budget Summary - Sanitary Sewer Operation: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Operating revenue User charges for services 5,711,695$ 6,046,862$ 6,069,287$ 6,608,063$ Operating expenses Personnel services 753,107 782,828 765,977 834,639 Commodities 53,018 86,715 85,976 85,471 Other charges and services 298,780 349,770 369,254 391,263 Disposal charges 3,509,576 4,018,012 4,018,840 4,174,432 Major maintenance - 670,000 1,078,284 1,205,000 Total operating expenses 4,614,481 5,907,325 6,318,331 6,690,805 Operating income (loss)1,097,214 139,537 (249,044) (82,742) Non-operating revenue Intergovernmental 2,969 26,632 1,632 154,000 Investment income 23,717 15,015 23,883 24,050 Disposal of assets 42,814 5,250 (10,000) (10,000) Total non-operating revenue 69,500 46,897 15,515 168,050 1,166,714 186,434 (233,529) 85,308 Contributed capital 2,592,347 500,000 500,000 500,000 Bond expense (12,223) (19,325) (18,222) (15,472) Transfer from other funds 23,873 23,822 23,822 24,165 Transfer to other funds (201,888) (200,012) (199,393) (174,527) Depreciation (1,609,047) (1,248,027) (1,635,557) (1,666,494) 793,062 (943,542) (1,329,350) (1,332,328) Change in net position 1,959,776 (757,108) (1,562,879) (1,247,020) Net position, January 1 47,458,058 46,544,802 49,417,834 47,854,955 Net position, December 31 49,417,834$ 45,787,694$ 47,854,955$ 46,607,935$ Capital outlay acquisitions 241,032$ 52,072$ 52,072$ 51,529$ Bond proceeds 495,000$ -$ -$ -$ Debt principal payments -$ 55,000$ 55,000$ 55,000$ CITY OF LAKEVILLE, MINNESOTA For the Year Ending December 31, 2019 Total contributions, transfers, and depreciation (net) Income (loss) before contributions, transfers and depreciation Enterprise - Utility Fund (Sanitary Sewer Operation) Schedule of Revenues, Expenses and Changes in Net Position 139 UTILITY FUND Street Light Operation Program Description: The Street Light Operation is designed to protect property, health and safety of the community’s residents and businesses. The system is maintained by Xcel Energy and Dakota Electric Association. Services – Street Light Operation:  Perform annual inspections of approximately 5,185 street lights and report any maintenance requirements to responsible electric companies.  Perform seasonal banner and flag changes on downtown street lights. 140 UTILITY FUND Street Light Operation (continued) Budget Summary – Street Light Operation: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Operating revenue User charges for services 864,736$ 850,000$ 869,032$ 875,355$ Operating expenses Personnel services 19,059 19,038 19,538 19,855 Commodities 49 33 33 63 Other charges and services 1,120,041 740,903 730,766 761,901 Major maintenance projects - - - - Total operating expenses 1,139,149 759,974 750,337 781,819 Operating income (loss)(274,413) 90,026 118,695 93,536 Non-operating revenue Investment income 3,740 2,576 2,613 2,933 Income(loss) before transfers (270,673) 92,602 121,308 96,469 Bond Expense (3,153) (15,075) (16,572) (15,375) Transfers to other funds (4,384) (4,407) (4,407) (5,001) Change in net position (278,210) 73,120 100,329 76,093 Net position, January 1 318,786 415,244 40,576 140,905 Net position, December 31 40,576$ 488,364$ 140,905$ 216,998$ Capital outlay acquisitions -$ -$ -$ -$ Bond proceeds 335,000$ -$ -$ -$ Debt principal payments -$ -$ -$ 30,000$ Enterprise - Utility Fund (Street Light Operation) Schedule of Revenues, Expenses and Changes in Net Position CITY OF LAKEVILLE, MINNESOTA For the Year Ending December 31, 2019 141 UTILITY FUND Environmental Resources Fund Description: The Environmental Resources Fund’s purpose is to manage, promote and protect the City’s natural resources including lakes, wetlands, streams, prairies and woodlands. The objective is accomplished through public education endeavors, surface water infrastructure management and monitoring the natural resources. Services:  Surface water resource monitoring. Environmental Resources coordinates and manages a variety of water quality research and improvement projects including aquatic plant control and fish management on City water bodies. The department also implements the City of Lakeville’s Comprehensive Water Resources Management Plan, Wetland Management Plan, South Creek Management Plan and the City of Lakeville’s Storm Water Pollution Prevention Program (SWPPP).  Surface water infrastructure management. In the management of the storm water treatment basins, environmental resources staff works closely with the Engineering and Street department staff to perform the work or to obtain quotes for the removal of the sediments and restoration of the area disturbed. Environmental resources staff also determines which storm water basins must be inspected and cleaned of sediment.  Public education and interaction. Public education and outreach required by State and Federal regulations are carried out with the Wetland Health Evaluation Project, the Vermillion River Watch program, and through presentations to various age groups. This includes coordination and management of the Adopt-a-Pond program, Citizen Assisted Monitoring Program and the Blue Thumb workshops with Dakota County Soil and Water Conservation District to educate and promote water quality stewardship among residents.  Watershed management. Staff reviews wetland delineation and performs a majority of the requirements for being the Responsible Governmental Unit (RGU) and the Local Governmental Unit (LGU) in relationship to environmental permitting. Staff also provides the wetland delineation, mitigation and monitoring plans for public improvement projects.  New Development - Residential. The department ensures that all construction plans for new developments meet NPDES Permit requirements. Staff assists in preparing wetland alteration permits and mitigation plans, obtains leases from the DNR for utility crossing of public waters for City projects, performs many of the duties required by local, State and Federal rules and regulations by being either the Responsible Governmental Unit (RGU) or the Local Governmental Unit (LGU). Inspect tree preservation of all new developments.  New Development – Commercial and Industrial. The department also provides plan review and inspections of all erosion control for industrial, commercial, and institutional building permits. They ensure that the wetland delineations are correct and meet the requirement of the State of Minnesota Wetland Conservation Act, ensure that tree preservation plans are accurate and that a developer takes feasible measures to save significant trees and protect valuable natural resources. 142 UTILITY FUND Environmental Resources (continued) Environmental recycling. The City of Lakeville join an existing partnership between the Cities of Apple Valley, Burnsville and Eagan in 2017 to provide recycling services. The partnership, named Dakota Valley Recycling (DVR), has existed since 2003 and supports Dakota County’s Solid Waste Abatement Program initiatives that promote environmental recycling awareness, such as education and public outreach. Funding is provided by a grant from Dakota County. Environmental Resources staff serve as the City’s liaison to DVR. 143 UTILITY FUND Environmental Resources (continued) Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Operating revenue User charges for services 1,010,190$ 1,142,027$ 1,152,468$ 1,636,903$ Operating expenses Personnel services 374,059 425,286 429,684 444,935 Commodities 25,915 33,367 34,633 34,248 Other charges and services 605,767 894,578 779,377 1,161,000 Total operating expenses 1,005,741 1,353,231 1,243,694 1,640,183 Operating income 4,449 (211,204) (91,226) (3,280) Non-operating revenue Intergovernmental 152,113 208,000 44,182 120,292 Investment income 10,002 7,151 4,591 3,140 Disposal of assets 3,295 - - - Total non-operating revenue 165,410 215,151 48,773 123,432 Income before transfers and depreciation 169,859 3,947 (42,453) 120,152 Contributed capital - - - - Transfers from other funds (532) 255,050 71,178 24,525 Transfers to other funds (199,094) (208,077) (250,307) (224,626) Depreciation (14,253) (12,204) (16,240) (16,240) (213,879) 34,769 (195,369) (216,341) Change in net position (44,020) 38,716 (237,822) (96,189) Net position, January 1 1,113,047 1,131,694 1,069,027 831,205 Net position, December 31 1,069,027$ 1,170,410$ 831,205$ 735,016$ Capital outlay acquisitions -$ 58,117$ 26,742$ -$ CITY OF LAKEVILLE, MINNESOTA For the Year Ending December 31, 2019 Total transfers and depreciation (net ) Enterprise - Utility Fund (Environmental Resources) Schedule of Revenues, Expenses and Changes in Net Position 144 Internal Service Fund Municipal Reserves Fund This fund is used to account for the City’s risk management program relating to general liability, excess liability, property, and casualty insurance costs which are charged to other City departments on a cost reimbursement basis. 145 MUNICIPAL RESERVES FUND Fund Description: Under the Governmental Accounting Standards Board (GASB) Statement No. 10, risk management activities of a government entity can be accounted for in either the General Fund or an Internal Service Fund, if one fund is used. The City uses the Internal Service Municipal Reserves Fund to budget such costs. Under this model, operating departments within the various City funds receive a charge from the Municipal Reserves Fund, and all costs (premiums, claims, and related expenses) are reflected in a single fund. This allows for better accountability and monitoring of the City’s risk management costs. Services:  General liability insurance.  Excess liability insurance.  Property/casualty insurance.  Auto physical damage insurance.  Employment practices liability insurance.  Workers compensation insurance. The general liability insurance is provided through the League of Minnesota Cities Insurance Trust, a municipal insurance pool, in which the City retains exposure to losses for liability claims up to $50,000 per occurrence, with a $100,000 yearly claims payment maximum; a $1,000 per claim deductible applies if the City exceeds the $100,000 maximum. Risk management charges to various City funds are based on factors such as number of automobiles used, stated value of buildings and contents, and employee salaries. A portion of the City’s liability insurance premium is attributable to vehicles and is allocated along with the physical damage premium. The remainder of the liability insurance premium is combined with an estimate of claims costs (including legal and administration) and allocated accordingly to individual funds. Workers compensation costs are charged to the various City funds and allocated to their individual departments based on employee salaries. 146 MUNICIPAL RESERVES FUND (continued) Budget Summary: 2018 2019 2017 Adopted 2018 Adopted Actual Budget Estimate Budget Operating revenues Charges for services 400,618$ 414,931$ 554,931$ 402,729$ Other 178,768 155,000 40,000 45,000 Total operating revenues 579,386 569,931 594,931 447,729 Operating expenses Other charges and services 606,411 639,737 541,093 546,249 Operating income (27,025) (69,806) 53,838 (98,520) Non-operating revenue (expense) Investment income (213) 2,732 2,935 2,970 Transfer to General Fund (53,057) (50,000) (50,000) (50,000) Total non-operating (net)(53,270) (47,268) (47,065) (47,030) Change in net position (80,295) (117,074) 6,773 (145,550) Net position, January 1 667,424 546,393 587,129 593,902 Net position, December 31 587,129$ 429,319$ 593,902$ 448,352$ CITY OF LAKEVILLE, MINNESOTA Schedule of Revenues, Expenses and Changes in Net Position Internal Service - Municipal Reserves Fund For the Year Ending December 31, 2019 147 2017 2018 2018 2019 Position Title Actual Budget Estimated Budget General government City Administrator 1.0 1.0 1.0 1.0 Assistant City Administrator 1.0 1.0 1.0 1.0 Senior Administrative Assistant/Deputy Clerk 1.0 1.0 1.0 1.0 Communications Manager 1.0 1.0 1.0 1.0 Communications Specialist*1.0 1.0 1.0 1.0 Marketing Specialist 0.5 1.0 1.0 1.0 Video Production & Tech Specialist 2.0 2.0 1.6 2.0 City Clerk 1.0 1.0 1.0 1.0 Planning Director 1.0 1.0 1.0 1.0 Associate Planners 2.0 2.0 2.0 2.0 Planning & Zoning Specialist*0.7 1.0 1.0 1.0 Planning Administrative Assistant 0.5 0.5 0.5 0.5 Community and Economic Development Director 1.0 1.0 1.0 1.0 Economic Development Specialist 0.9 1.0 1.0 1.0 Community and Economic Dev. Admin. Assistant 0.5 0.5 0.5 0.5 Building Official 1.0 1.0 1.0 1.0 Assistant Building Official 0.6 1.0 1.0 1.0 Senior Inspector 2.4 2.0 2.0 2.0 Building Inspector 2.4 3.0 3.0 3.0 Building Senior Administrative Assistant 1.0 1.0 1.0 1.0 Building Administrative Assistant 1.0 1.0 1.0 1.0 Facilities Supervisor*1.0 1.0 1.0 1.0 Facility Attendant 2.5 3.3 4.0 4.2 City Hall Receptionist 1.6 1.6 1.6 1.6 City Hall Administrative Assistant 0.4 0.4 0.4 0.4 Finance Director 1.0 1.0 1.0 1.0 Assistant Finance Director 1.0 1.0 1.0 1.0 Senior Financial Analyst*3.0 3.0 3.0 3.0 Financial Analyst*1.0 1.0 1.0 1.0 Accounts Payable Technician 1.0 1.0 1.0 1.0 Number of City Employees (Full Time Equivalent) CITY OF LAKEVILLE, MINNESOTA 148 2017 2018 2018 2019 Position Title Actual Budget Estimated Budget Number of City Employees (Full Time Equivalent) CITY OF LAKEVILLE, MINNESOTA General Government (continuted) Information Technology Manager* 1.0 1.0 1.0 1.0 Information Technology Administrator* 1.0 1.0 1.0 1.0 Information Technology Technician* 1.8 2.0 2.0 2.0 Human Resources Manager 1.0 1.0 1.0 1.0 Human Resources Specialist* 1.0 1.0 1.0 1.0 Payroll Specialist* 2.0 2.0 2.0 2.0 Total general government 43.8 46.3 46.6 47.2 Public safety Police Sworn officers Chief 1.0 1.0 1.0 1.0 Deputy Chief 1.0 1.0 1.0 1.0 Lieutenant 4.0 4.0 4.0 4.0 Sergeant 5.0 5.0 5.0 6.0 Investigator 6.0 6.0 6.0 6.0 Narcotics Task Force Officer 1.0 1.0 1.0 1.0 DUI Enforcement Grant 1.0 0.8 0.8 0.0 Patrol Officer 37.0 40.4 37.2 40.0 Total sworn officers 56.0 59.2 56.0 59.0 Business Manager 1.0 1.0 1.0 1.0 Evidence Technician 1.0 1.0 1.0 1.0 Community Service Officer 5.7 4.8 5.1 4.8 Records Analyst 1.0 1.0 1.0 1.0 Police Administrative Assistant 4.7 4.7 4.7 5.0 Total police 69.4 71.7 68.8 71.8 Fire Fire Chief 1.0 1.0 1.0 1.0 Assistant Fire Chief 1.0 1.0 1.0 1.0 Fire Marshal 1.0 1.0 1.0 1.0 Fire Inspector 1.0 1.0 1.0 1.0 Fire Senior Administrative Assistant 0.9 1.0 1.0 1.0 Fire Administrative Assistant 0.5 0.6 0.6 0.6 Total fire 5.4 5.6 5.6 5.6 Total public safety 74.8 77.3 74.4 77.4 149 2017 2018 2018 2019 Position Title Actual Budget Estimated Budget Number of City Employees (Full Time Equivalent) CITY OF LAKEVILLE, MINNESOTA Public works Engineering City Engineer 1.0 1.0 1.0 1.0 Assistant City Engineer 0.0 1.0 1.0 1.0 Senior Project Engineer 2.0 0.0 0.0 0.0 Project Engineer 0.6 1.0 1.0 1.0 Civil Engineer 1.0 1.0 1.0 1.0 Engineering Administrative Assistant 1.0 1.0 1.0 1.0 GIS Manager*1.0 1.0 1.0 1.0 GIS Technician 1.0 1.0 1.0 1.0 Total engineering 7.6 7.0 7.0 7.0 Construction Services Operations and Maintenance (O & M) Engineer 0.0 0.0 0.0 0.0 O & M Construction Coordinator 0.4 0.0 0.0 0.0 O & M Engineer Coordinator 0.4 0.0 0.0 0.0 Construction Services Superintendent 0.4 1.0 1.0 1.0 Senior Construction Representative 1.6 2.0 1.0 1.0 Construction Representative 0.2 1.0 0.7 2.0 Graduate Engineer 0.3 1.0 1.0 1.0 Total operations and maintenance 3.3 5.0 3.7 5.0 Streets Streets & Fleet Superintendent*1.0 1.0 1.0 1.0 Streets Supervisor 1.0 1.0 1.0 1.0 Streets Lead Maintenance 0.9 1.0 0.9 1.0 Fleet Supervisor 1.0 1.0 1.0 1.0 Fleet Service Technician Lead 1.0 1.0 1.0 1.0 Streets Maintenance II 11.8 12.0 12.0 12.0 Fleet Service Technician 4.0 4.0 4.0 4.0 Streets Administrative Assistant 1.0 1.0 1.0 1.0 Total streets 21.7 22.0 21.9 22.0 Total public works 32.6 34.0 32.6 34.0 150 2017 2018 2018 2019 Position Title Actual Budget Estimated Budget Number of City Employees (Full Time Equivalent) CITY OF LAKEVILLE, MINNESOTA Parks and recreation Parks Parks and Recreation Director 1.0 1.0 1.0 1.0 Parks Superintendent 1.0 1.0 1.0 1.0 Parks Supervisor 1.0 1.0 1.0 1.0 Parks Lead Maintenance 1.0 1.0 1.0 1.0 Parks Maintenance II 9.1 10.0 10.0 10.0 Parks Administrative Assistant 1.0 1.0 1.0 1.0 Parks Maintenance Administrative Assistant 1.0 1.0 1.0 1.0 Total parks 15.1 16.0 16.0 16.0 Recreation Recreation Manager*1.0 1.0 1.0 1.0 Recreation Administrative Assistant 1.0 1.0 1.0 1.0 Recreation Program Coordinator 2.0 2.0 2.0 2.0 Active Adults Administrative Assistant 1.0 1.0 1.0 1.0 Total recreation 5.0 5.0 5.0 5.0 Heritage Center Heritage Center Facility Attendant 1.1 1.1 1.1 1.1 Heritage Center Administrative Assistant 0.4 0.4 0.4 0.4 Total Heritage Center 1.5 1.5 1.5 1.5 Arts Center Arts Center Manager 1.0 1.0 1.0 1.0 Recreation Program Coordinator 0.0 1.0 1.0 1.0 Arts Center Administrative Assistant 1.0 0.0 0.0 0.0 Arts Center Facility Attendant 1.9 1.5 1.5 1.5 Pottery Manager 0.7 0.2 0.2 0.2 Total arts center 4.6 3.7 3.7 3.7 Total parks and recreation 26.2 26.2 26.2 26.2 Total general/special revenue fund employees 177.4 183.8 179.8 184.8 151 2017 2018 2018 2019 Position Title Actual Budget Estimated Budget Number of City Employees (Full Time Equivalent) CITY OF LAKEVILLE, MINNESOTA Liquor fund Operations Director 1.0 1.0 1.0 1.0 Assistant Operations Director 1.0 1.0 1.0 1.0 Store Manager 3.0 3.0 3.0 3.0 Administrative Services Manager 0.4 0.0 0.0 0.0 Inventory Control Technician 1.0 1.0 1.0 1.0 Assistant Store Manager 6.0 6.0 6.0 6.0 Lead Sales Associate 3.9 3.9 3.9 3.9 Sales Associate 9.8 8.9 8.9 8.9 Total liquor fund employees 26.1 24.8 24.8 24.8 Utility fund Public Works Director 1.0 1.0 1.0 1.0 Utilities Superintendent 1.0 1.0 1.0 1.0 Utilities Supervisor 1.0 1.0 1.0 1.0 Public Works & Facilities Coordinator 1.0 1.0 1.0 1.0 Utility Lead Maintenance 1.0 1.0 1.0 1.0 Utility Maintenance II 11.8 12.0 12.0 12.0 Utility Billing Technician 2.0 2.0 2.0 2.0 Utility Administrative Assistant 1.0 1.0 1.0 1.0 Environmental Resources Manager 1.0 1.0 1.0 1.0 Environmental Resources Specialist 1.0 1.0 1.0 1.0 Environmental Resources Technician 1.0 1.0 1.0 1.0 Forester 0.3 0.7 0.7 0.7 Total utility fund employees 23.1 23.7 23.7 23.7 Total general/special revenue fund employees 177.4 183.8 179.8 184.8 Total liquor fund employees 26.1 24.8 24.8 24.8 Total utility fund employees 23.1 23.7 23.7 23.7 Total City employees 226.6 232.3 228.3 233.3 *Position title changed in 2019 152