HomeMy WebLinkAboutItem 09.cCITY OF LAKEVILLE, MINNESOTA
2011 Proposed Budget and 2012 Estimated Budget
Table of Contents
Page
Executive Summary
Budget Message1
Distinguished Budget Presentation Award18
Elected and Appointed Officials19
Organizational Structure20
Relationships between Departments and Funds21
Financial and Budget Policies22
2011 Budget Development Process and Calendar26
Description of City Funds and Accounting Structure27
Strategic Plan29
Revenue Sources, Trends and Assumptions33
Combined Budgetary Funds Summary - All Appropriated Fund Types40
Property Tax Levy Information45
General Fund
Fund Balance Discussion57
Statement of Revenues, Expenditures, and Changes in Fund Balance59
Schedule of Revenues
General Property Taxes60
Licenses and Permits61
Intergovernmental62
Charges for Services63
Court Fines, Investment Income, Miscellaneous, and Other Financing65
Department/Program Budget Descriptions and Expenditures
General Government
Mayor and Council66
Committees and Commissions68
City Administration70
City Clerk73
Legal Counsel75
Planning76
Community and Economic Development80
Inspections83
General Government Facilities87
Finance91
Information Systems95
Human Resources99
Insurance102
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CITY OF LAKEVILLE, MINNESOTA
2011 Proposed Budget and 2012 Estimated Budget
Table of Contents
(continued)
Page
General Fund
(continued)
Public Safety
Police104
Fire110
Public Works
Engineering114
Streets118
Parks and Recreation
Parks 124
Recreation130
Arts Center134
Special Revenue Funds
Combining Schedule of Revenues, Expenditures, and changes in Fund Balances138
Fund Balance Discussion141
Communications Fund142
Compensation Liability Fund147
Environmental Resources Fund149
Economic Development Fund155
Debt Service Funds
Description, Credit Rating, 156
Debt Obligations and Issuance157
Legal Debt Limits158
Combining Schedule of Revenues, Expenditures, and changes in Fund Balances159
Fund Balance Discussion164
Special Assessments Fund165
Property Taxes Fund166
State-Aid Fund167
Tax Increment Fund168
Water Revenue Fund169
Arena Revenue Fund170
HRA Lease Revenue Fund171
Combined Schedule of Governmental Debt Service Requirements172
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CITY OF LAKEVILLE, MINNESOTA
2011 Proposed Budget and 2012 Estimated Budget
Table of Contents
(continued)
Page
Capital Projects Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances174
Fund Balance Discussion179
Municipal State Aid Fund181
Capital Improvement Plan Projects181
Pavement Management Fund182
Capital Improvement Plan Projects183
Improvement Construction Fund184
Capital Improvement Plan Projects185
Building Fund186
Capital Improvement Plan Projects187
Equipment Fund188
Capital Improvement Plan Projects190
Park Dedication Fund191
Capital Improvement Plan Projects192
Trail Improvement Fund193
Capital Improvement Plan Projects193
Storm Sewer Fund194
Capital Improvement Plan Projects195
Water Fund196
Capital Improvement Plan Projects197
Sanitary Sewer Fund198
Capital Improvement Plan Projects199
Tax Increment Fund200
Capital Improvement Plan Projects201
Enterprise Funds
Liquor Fund202
Net Assets Discussion206
Utility Fund208
Net Assets Discussion210
Internal Service Fund
Municipal Reserves Fund224
Net Assets Discussion225
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CITY OF LAKEVILLE, MINNESOTA
2011 Proposed Budget and 2012 Estimated Budget
Table of Contents
(continued)
Page
Appendices
Community Profile226
Map of Lakeville229
Number of City Employees (Full Time Equivalent)230
Listing of Principal Employers234
Commercial and Industrial Building Permits Issued - Years 2008 and 2007235
Equipment Fund Schedule of Capital Outlay (detailed)236
Glossary of Budget Terms241
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Executive Summary
September 7, 2010
To the Honorable Mayor, Members of the City Council and the Citizens of Lakeville:
The City of Lakeville has, over the past couple years, been confronted with economic and
financial challenges similar to those of our residents and businesses. Revenue reductions from
loss of state payments for property tax relief, building permits, development fees and
investments earnings as well as increased tax delinquencies compelled the City to adjust its
budget and modify service delivery.
In mid-2008 and again in early 2009, the City responded to the challenges by downsizing its
operations by 6% and reducing personnel by 10% with the elimination of more than 18 employee
positions. Certain services were eliminated or reduced such as boulevard mowing, park
maintenance, snow plowing of trails and sidewalks, gardening program, ice rinks and community
and economic development marketing endeavors. User fees were evaluated and adjusted. A
significant number of major maintenance projects were deferred in anticipation of improvement
in future economic conditions. Employee furloughs and wage reductions were enacted. These
moves established a new base of services and service levels in the community. For 2010,
additional service reductions and modifications were set in place.
Some of the current economic data seems to suggest that the worst of the financial crisis might
be behind us. However, there are many who believe that any economic improvements will be
moderate for an extended period of time.
The City of Lakeville has adjusted to the new realities as a result of these economic challenges.
In the process, the organization has established financial and operational platforms which
prepare our community for the future.
1
The primary objectives in developing the proposed 2011 – 2012 budget is to achieve the service
delivery expectations of residents and businesses, assure efficient and effective delivery of
services, implement an attainable long term capital and financial operating plan and establish
sustainable restructures to the extent reasonably possible.
Budget Objectives
Long Term
Financial
Plan
Efficient Proposed
and Revenue
2011 and
Effective
Structure
2012
Services
Budget
Achieve
Service
Delivery
Expectation
A discussion of each of the objectives and how it relates to the proposed 2011 and 2012 budget
and tax levy follows.
Achieving the service delivery expectations
of residents and businesses
Achieve
is a high priority. To obtain an accurate assessment, Decision Resources
Service
was retained by the City to gather statistically valid information. The
Delivery
Expectations
results provide meaningful information in the budget process. As such,
the survey information is referenced in the appropriate locations within the
budget document.
2
The survey indicated, for example, that the overwhelming majority of residents oppose service
cuts even if it would reduce their current City property taxes. The business community indicated
in a narrow 41% to 38% plurality that it favors service cuts if it would reduce property taxes.
The majority of services therefore have no significant changes in program service levels or
funding allocation. Reductions are proposed, however, in areas deemed less important by
residents and businesses.
Both residential and business surveys reveal an opposition to increased property taxes. The
proposed budget, therefore, includes a tax levy with no increase for 2011; a modest 2.7%
increase for 2012 to finance infrastructure improvements, promote economic development and
finance operations.
Efficient and effective services.
Lakeville has a long and sustained
Efficient
history of efficient and effective service delivery. According to the
and
Minnesota State Auditors Office Lakeville ranks a very favorable 194 out
Effective
of 225 cities in current expenditures per capita for cities with populations
Services
of 2,500 or more.
The efficiencies are achieved by investing in effective technologies such as the geographic
information systems, building inspection permitting, liquor inventory systems, and police records
management. Partnering with other government agencies, such as the Dakota Communications
Center, LOGIS for information systems and the League of Minnesota Cities for risk management
and insurance, results in reduced costs.
Efficiencies are also achieved with effective personnel management such as those in the Police
Department where the number of officers per capita are amongst the lowest in the metro area.
The City has also installed energy efficient systems in its facilities such as City Hall, Police
Station and Liquor stores to reduce gas and electric costs.
The City Council and Staff are committed to the ongoing process of evaluating and
implementing systems which result in quality services at the lowest possible price.
Long
Long term capital and operating plans
are integral to sustained fiscal
Term
stability. The 2011-15 Capital Improvement Plan contemplates projects to
Financial
accommodate Lakeville’s growth, embraces community safety and
Plans
promotes economic development.
thrd
The Kenrick Avenue improvement from 175 to 183 Street will provide a connection between
two of Lakeville’s commercial districts with the expectation that it will stimulate business,
promote economic development and enhance traffic flow.
3
The Dodd Boulevard improvements as well as the County Road 50 and 60 intersection
improvements will provide improved safety and traffic mobility. To the extent reasonably
possible, the Capital Improvement projects are financed with non-property tax revenues, such as
state and federal grants, special assessments, connection charges and Municipal State Aid
funding.
Lakeville’s road system infrastructure is aging. The resident and business surveys both indicate
concerns over the condition of our road network. The City will embark on a street reconstruction
plan to replace the streets when they are no longer cost effective to maintain.
Benefitted property owners and the City will be responsible for 40% and 60% of the cost,
respectively. The City share of cost will be repaid with property tax levies over a period of time
and will be structured to minimize the property tax burden. The street reconstruction program
however, comes at a price. Taxes will gradually increase over the coming decade as the
transportation system ages and reconstruction programs become inevitable.
The economic challenges of the past couple years have resulted in a period of uncertainty and
skepticism amongst the populace. To instill confidence that the service levels are affordable and
sustainable, a two year budget is provided for City Council consideration.
Some of the salient issues addressed in the budget are as follows:
New programs and services are considered only if they are self-supporting through user
fees. The proposed Police Department citizen academy, for example, will proceed only if it
can be financed with user fees and/or donations.
Reduction in services for non-essential low priority services. The Forestry function is
being reduced in scope. Citizen inquiries and requests for forestry related services will be
deferred to private sector and County or State resources. The City oak wilt grant program
will be terminated.
No new personnel positions for 2011. The Fire Department will recruit 15 volunteer
firefighters to replace those who have left the department due to retirements and
resignations. The recruitment process will bring the number of volunteer firefighters to 85;
the department is authorized to have up to 90 firefighters.
Residential growth continues, albeit at a slow but steady pace. Since residents and
businesses regard police protection and street maintenance as high priorities, a police patrol
position and police records technician are proposed to be added in 2012 to meet the needs
of new growth. A street maintenance position will also be added in the fall of 2012.
Generally speaking, all other programs and services will remain at the levels established
with the 2010 budget. None of the services reduced or eliminated in previous years are
proposed to be reinstated.
4
The revenue structures, including fees for services and property taxes, are
evaluated each year to ensure that there are adequate financial resources to
support the proposed budget.
Revenue
The only changes proposed in the fee structure are those related to utility
Structure
services for water, sanitary sewer, surface water management and street
lights. The fee changes are proposed as a result of cost increases for
Metropolitan Council charges for treatment of sanitary sewer effluent,
street lighting electricity, environmental resources operations and water
treatment facility debt service requirements.
The City Council’s fiscally prudent policies combined with operational efficiencies results in no
tax increase for the coming year; an extended period of nominal tax increases are projected for
the foreseeable future to account for changes in the increased costs of doing business and the
street improvement program.
Property Taxes
2011Increase/2012Increase/
PurposeProposed(Decrease)Estimate(Decrease)
General Fund operations$ 16,192,544 (21,864)$ 16,642,460 449,916
Equipment acquisition and financing 880,240 (85,823) 603,452 (276,788)
Total operations 17,072,784 (107,687)-0.4% 17,245,912 173,1280.7%
Market Value Homestead Credit 788,027 157,4660.7% 788,027 -
Debt Service
Street Improvement Bonds 2,116,223 (415,262) 2,683,980 567,757
Pavement Management 1,546,958 288,270 1,198,487 (348,471)
Capital Impr. Bonds - Police 908,488 39,625 961,196 52,708
Capital Impr. Bonds - CMF 857,757 26,582 883,000 25,243
Park Bonds 424,744 7,225 416,531 (8,213)
Ice Arena Bonds 275,070 3,781 281,033 5,963
Arts Center Bonds 51,601 - 51,601 -
Total capital improvements 6,180,841 (49,779)-0.3% 6,475,828 294,9871.2%
Kenrick Ave: 175th - 181st
191,248 191,2480.8%
Total tax levy$ 24,041,652 -0.0%$ 24,701,015 659,3632.7%
Consistent with the results of the residential and business community survey, one of the primary
objectives is a proposed tax levy with no increase for 2011. The $788,027 loss of Market Value
Homestead Credit, however, makes the objective very challenging. The objective is achieved by
undertaking the following course of action.
5
The General Fund fund balance is proposed to be appropriated to provide $2.8 million in
2010 to finance major maintenance projects, reduce debt and mitigating tax increases for
the foreseeable future. The General Fund appropriations are as follows:
Fund Total
Trail Maintenence Fund$ 1,400,000
Equipment Fund 1,100,000
Building Fund 52,136
G.O. Improvement Bonds 107,490
Pavement Management Fund 140,374
Total$ 2,800,000
No new programs or increase in service levels without a corresponding increase in non-tax
revenues.
No increase in personnel positions.
Financing provided from the Liquor Fund ($685,329) for public safety equipment.
Economic conditions have changed. A year ago, tax delinquencies were escalating,
construction activity and permit revenues had declined to new lows, property values were
in a downward spiral with no end in sight due to market conditions and interest rates
plummeted on quality investments due to the “flight to quality”. In the mean time, the
State of Minnesota’s financial condition results in great uncertainty about the State aid
payments to cities. At that period of time there was an elevated level of concern about the
fragility of the economic system and vulnerability to further deterioration of our financial
position. As such, the City of Lakeville like most businesses and individuals, prepared
defensive financial positions for what was perceived to be even more difficult conditions in
the year(s) ahead. Today, we have a long way to go in order to return to the prosperity of
the past two decades; however, there is at least a sense of more stability than a year ago
with some indicators reflecting upward movement (albeit gradual) for the years ahead. As
such, the proposed budget is premised on the appropriation of the General Fund fund
balance ($223,389) in 2011 to minimize tax impacts. The fund balance to expenditure ratio
will be 40.1% and 40.0% in 2011 and 2012, respectively.
Due to differences in the valuation changes between properties classes the impact of the
proposed zero increase in the levy will have disparate impacts.
The estimated market value for homesteaded residential properties (taxes payable in 2011)
decreased by 7.75%. As such the proposed City tax levy will result in an approximate $32
decrease in City portion of property taxes on the average homesteaded residential property for
the coming year.
6
The majority of commercial and industrial properties are also experiencing decreases in their
estimated market values. As a result, the City property taxes on most commercial and
industrial properties will also decrease for the coming year. A $1 million commercial property
will have a $70-140 decrease in the City portion of property taxes depending on the final fiscal
disparities rates.
The estimated 2012 tax levy will increase by $659,363 which is an overall increase of
approximately 2.7%. The primary factors for the increase are as follows:
The City share of debt related to street reconstruction projects will result in a levy increase
of $294,987. The levy represents approximately 1.2% of the total levy increase.
th
The annual debt levy for the Kenrick Ave project from 175 to 181st is approximately
$191,248 and thus represents approximately .8% of the total levy increase.
Levy for operations will increase by $173,128 primarily as a result of new personnel
positions including the Police Department patrol officer and records technician as well as
Street Maintenance position in the fall of 2012. The increase represents a .7% increase in
the total levy.
Summary
The purpose of local government is to provide public services which meet the needs and
expectations of its residents and businesses. The proposed budget achieves that objective. The
City Council and Staff are committed to its ongoing endeavors of providing services - efficiently
and cost effectively.
The financial plan is established on a strong, long-term foundation of providing public services
which are affordable and absent significant tax increases for the foreseeable future.
7
Budget Overview
Municipalities organize their financial activities into separate “funds” in order to properly
manage and account for the services provided. Each fund can be thought of as a separate
business organized for a specific purpose. Each of the funds has a different purpose, different
constraints on its resources and a different method of accounting for its activities. The City has
attempted to allocate resources among its different funds in order to achieve the Council’s goals
in the most cost-effective manner possible.
General Fund
The 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.
GENERAL FUND EXPENDITURES - 2011
BY FUNCTION $20,945,949
Public Safety
Public Works
$9,844,384
$3,190,863
47%
15%
Parks and
Recreation
$3,212,396
General
16%
Government
Other
$4,389,237
$309,069 1%
21%
The majority of the City budget, especially in the General Fund, is related to personnel costs and
services. Since mid-2008, the City has adjusted its budget as a result of economic conditions and
Council initiatives. Since service and costs are primarily derived from personnel services, there
has been a corresponding reduction in the City staffing levels.
8
The 2011 proposed budget is based on no new employee positions. From 2009 to 2012, the City
will grow by approximately 450 new homes with almost 1,400 new residents. The 2012 budget
estimate includes the addition of one Police Patrol Officer and Police Records Technician as well
as a Street Maintenance position in the fall of 2012 to serve the steadily growing population.
General Fund
Number of Employees
(Full Time Equivalent)
200720082009201020112012
ActualActualActualAdoptedProposedEstimate
General government 42.7 41.1 34.7 32.2 32.2 32.2
Public safety
Police 64.1 65.2 62.1 62.3 62.8 64.8
Fire 4.6 4.6 4.6 4.6 4.6 4.6
Public works
Engineering 10.4 9.3 7.3 7.0 7.0 7.0
Streets 19.8 20.0 19.4 19.0 19.0 19.3
Parks and recreation
Parks 15.0 15.0 14.5 15.0 15.0 15.0
Recreation 5.3 5.3 4.9 4.7 4.7 4.7
3.2 3.6 3.7 3.7 3.7 3.7
Arts Center
165.1 164.1 151.2 148.5 149.0 151.3
Total General Fund
The budget also provides appropriations for anticipated increases in health care costs and a
mandated .25% increase in the employer share of the PERA pension costs. A complete
discussion of all General Fund departments, services and programs is provided in the subsequent
section of this document.
Based on the budget challenges for the coming years, there will be no new initiatives in the
coming year unless the program is self-sufficient with non-tax revenues and the City staff is
directed to do so by the Council. The Forestry program is proposed to be reduced in scope with
the elimination of grant programs and private property inquiries.
9
The major functions of the General Fund are finance with a combination of revenues – taxes
being the largest source. Other revenues included licenses and permits, charges for services,
court fines, intergovernmental revenues and interest income. The following graph illustrates the
revenue sources by major service category.
GENERAL FUND REVENUE SOURCE BY FUNCTION - 2011
$10,500,000
$1,544,309
$9,500,000
$8,500,000
$8,584,906
$7,500,000
$6,500,000
$5,500,000
$4,500,000
$1,666,832
$3,500,000
$601,653
$846,762
$2,500,000
$2,961,718
$2,700,335
$2,424,543
$1,500,000
$500,000
$(500,000)
General GovernmentPublic SafetyPublic WorksParks and Rec.
Tax LevyOther Revenue
The designated fund balance represents the amount of funds required to operate during the first
six months of the year. The City’s most significant revenue sources – general property taxes and
intergovernmental revenue – do not provide appreciable revenues until the second half of the
year. A healthy financial position also allows the City to avoid volatility in tax rates; helps
minimize the impact of state funding changes; allows for the adequate consistent funding of
services, repairs and unexpected costs; and can be a factor in determining the City’s bond rating
and resulting interest costs.
20112012
ProposedEstimated
BudgetBudget
Revenues and other financing sources$ 20,722,560$ 21,523,546
Expenditures 20,945,949 21,360,944
Net increase/(decrease) (223,389) 162,602
Fund Balance, January 1 8,615,197 8,391,808
Fund Balance, December 31$ 8,391,808$ 8,554,410
Ratio: Fund balance to expenditures40.1%40.0%
The estimated ending fund balance is $8,391,808 and $8,554,410 for 2011 and 2012
respectively. The ratio of fund balance to expenditures is 40.1% and 40.0% for 2011 and 2012
10
respectively. In light of anticipated economic stability in the coming years, the fund balance is
adequate and sufficient but not excessive. The fund balance is within City Policy guidelines.
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds from specific revenue sources that
are legally restricted to expenditures for specific purposes. Establishment of such funds also
enables the City to more effectively manage its resources and minimize tax levies. Special
revenue funds such as Communications (formerly referred to as Cable TV), Compensation
Liability, Environmental Resources, and Economic Development are self supporting from user
fees and grants.
Communications Fund
The budget provides cable TV services on channel 16 and the new
channel 12 public access channels. The services also include the weekly Messages publications
and the City web-site.
Compensation Liability Fund
The accounts for the accrued liability of employee benefits
attributed to severance compensation.
Environmental ResourcesFund
The provides a wide range of environmental services which
are described in a subsequent section including surface water management and the city wide
recycling efforts. The surface water programs will be financed with a $.50 per quarter increase
in the surface water management fee.
Economic Development Fund
The accounts for a state grant received from the Minnesota
Department of Trade and Economic Development in 1995. The grant purpose is to provide loans
to businesses expanding in or locating to Lakeville. The fund also accounts for administrative
fees to be received from the 2008 issuance of conduit debt.
Debt Service Funds
The City of Lakeville as of December 31, 2010, will have approximately $90 million of debt
outstanding (excluding liquor revenue bonds), of which the majority will be repaid from non-tax
related revenue sources such as special assessments, state aid street construction allocations, tax
increments, ice arena operations and liquor profits.
The 2011 tax levy includes $4,959,746 for bond debt repayment, which is a ($978,248) decrease
from the 2010 tax levy for debt. The City’s governmental bonds payable are shown in the Debt
Service Funds section of this report and liquor revenue bonds are shown separately in the Liquor
Fund section.
Moody’s Investor Service has assigned Lakeville an Aa1 credit rating. In its opinion letter,
Moody’s stated “This very favorable rating reflects the City’s rapid growing tax base and
diversifying underlying economy; as well as its healthy financial operations characterized by
prudent management and sound fund balances.”
Capital Project Funds
11
The Equipment Fund accounts for the acquisition and replacement of vehicles and equipment.
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.
As such, the proposed budget provides $4.3 million for capital equipment acquisitions and
replacements for the coming two years. A detailed list of the equipment is included in the budget
document. A summary of the proposed equipment acquisitions for the coming years is as
follows:
Expenditures20112012
$ 87,407 $ 168,074
General Government
716,328 237,577
Police
333,839 35,564
Fire
974,601 802,297
Streets
376,097 128,210
Parks
21,685 18,863
Issuance costs
$ 2,509,957 $ 1,390,585
Total
The City has several revenues sources available for financing equipment acquisitions including
contributions from ALF Ambulance, sales of assets, transfers from other funds, issuance of short
term debt and tax levies.
ALF Ambulance has contracted with Allina Medical Transportation for emergency medical
services effective February 1, 2009. The ALF assets are in the process of being liquidated and
distributed to member cities; Lakeville will receive $39,628 in 2011. The Capital Projects
Equipment Fund budget appropriates the ALF distribution to the acquisition of public safety
equipment.
The proposed budget includes a $1.1 million transfer from the General Fund in 2010 and a
recommendation that the Liquor Fund provide $685,329 of financing to reduce the reliance on
property tax levies. The proposed transfer from the Liquor Fund would finance the following:
PurposeTotal
Civil defense sirens
$ 247,498
Fire: Tender truck
225,000
Police: Software and hardware
212,831
Total$ 685,329
A tax levy is proposed in the amount of $554,377 and $372,974 for 2011 and 2012 to minimize
the City reliance on short-term debt and interest cost to finance equipment acquisitions. The City
has the statutory authority to issue Certificates of Indebtedness – short term debt – to finance the
purchase of police, fire, and streets and park maintenance equipment. Certificates of
Indebtedness are repaid with property tax levies which are exempt from levy limits. The
proposed budget includes the issuance of $655,000 and $600,000 of debt in 2011 and 2012. The
debt will be repaid with tax levies in 2012 – 2014.
12
Building Fund
The accounts for construction and major maintenance improvement related to
government buildings. A detailed list of the improvements is included in the budget document. A
summary of the proposed improvements for the coming years is as follows:
Facility20112012
Arts Center$ 2,200$ -
Central Maintenance Facility 72,900
City Hall 224,456
Fire Facilities 221,431 9,600
Police Station 9,000 300,000
Senior Center 435,000
Historical Society 23,000
Total capital improvements$ 529,987$ 767,600
The Building Fund projects are financed from the proceeds from the sale of land to Life Time
Fitness, transfers from the General Fund and other non-property tax revenue sources.
Infrastructure (streets, water, sewers, parks, etc.) is indispensable toward making the City safe,
attractive and prosperous. Financing of improvements is often accomplished through issuance of
debt because of its long useful life and in order to make the projects affordable.
Improvement projects are identified in the City’s five-year Capital Improvement Plan. However,
inclusion in the budget does not in itself confer authority to spend City resources. Capital
projects are subject to individual review and approval by the Council prior to commencement.
The most significant projects contemplated in the Capital Improvement Plan are as follows:
thrd
Kenrick Avenue from 175 Street to 183 Street ($2.5 million) in 2011 financed with
special assessments and property tax levies over a twenty year period.
stth
Cedar Avenue from 161 Street to 179 Street in 2011 financed with federal grants and
Street Improvement Funds.
rd
Dodd Boulevard (County Road 9) from 183 Street to Hayes Avenue ($6.1 million) in
2012 financed with federal grants, Municipal State Aid Street funds, and Dakota County.
Stoneborough Park improvements in 2011 financed with Park Dedication fees.
thth
Kenrick Avenue trail improvements from 186 Street to 205 Street in 2012 financed with
grant funding.
Enterprise Funds
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Liquor Fund
The City of Lakeville has, since the repeal of Prohibition in 1933, owned and operated a
municipal liquor store with the intent of controlling the sale of alcohol in a responsible manner.
Lakeville operates three liquor stores that have a combined sales volume approaching $15
million. The net income derived from operations is committed to projects that are deemed to be
of benefit to the community.
The Liquor Fund will continue to provide $18,288 of financial support to Independent School
District 194 for the “School/Community Prevention Specialist” program. In addition, the Liquor
Fund has a long standing history of providing financial support to community projects.
Projects proposed to be financed by the Liquor Fund are as follows:
Purpose2011
Civil defense sirens $ 247,498
Fire: Tender truck 225,000
Police: Software and hardware 212,831
Fire Station #4 debt 185,320
Police Station debt 100,000
General Fund reimbursement 78,516
66,434
Payment in lieu of property taxes
$ 1,115,599
Total
Investment in our City’s entrepreneurial endeavors will enhance the City’s ability to continue to
provide significant future financial support for projects that benefit our community. The long-
term plans include improvements to the Heritage Liquor Store and land acquisition in the vicinity
of County Road 70 and Interstate Highway 35.
Utility Fund - Water Operation
The 2011 water operation budget includes several major maintenance items that include the
rehabilitation of well 15, repainting the Fairfield water tower, replacement of a high performance
pump at the water treatment facility and continuing the change out of numeric readout water
meters with newer digital meters for a total cost of approximately $806,200.
The 2012 estimated budget includes rehabilitation of wells 9 and 10 and the repainting of the
Airlake Water Tower for a total cost of approximately $882,734. The proposed Utility Fund
budget does not provide any new staff positions.
Construction of the water system infrastructure such as wells, towers and water treatment plant
are financed with water connection charges collected at the time building permits are issued.
The current economic conditions have resulted in a significant decrease in housing construction
14
and hence reduction in water connection revenue. As such, the water operations will be required
to contribute $1.6 million in the next two years for debt service payments.
A summary of the water operations budget is as follows:
20112012
ProposedEstimated
Revenues$ 3,458,133$ 3,693,922
Operating expenses (2,249,302) (2,241,732)
Major maintenance (806,200) (882,734)
Interfund transfers (79,725) (81,458)
Debt service (1,200,000) (400,000)
Capital outlay (87,027) (22,379)
Change in working capital$ (964,121) $ 65,619
Utility Fund – Sanitary Sewer Operation
More than 77% of the sanitary sewer operation budget is for Metropolitan Council
Environmental Services (M.C.E.S.) sanitary sewer fees for treatment of system effluent.
M.C.E.S. has increased sewer charges 3.2% for the coming year; sanitary sewer rates are
proposed to increase accordingly.
Major maintenance projects include inflow and infiltration mitigation efforts, lift station
rehabilitations and lining of the Lake Marion sanitary sewer main in 2012. The sanitary sewer
operation change in working capital is summarized as follows:
20112012
ProposedEstimate
Revenues$ 4,359,275$ 4,522,613
M.C.E.S. expense (2,941,489) (3,065,964)
Operating expenses (977,393) (1,002,532)
Major maintenance (92,600) (315,900)
Interfund transfers (125,318) (128,544)
(59,952) (22,379)
Capital outlay
$ 162,523$ (12,706)
Change in working capital
Utility Fund – Street Light Operation
The street light operation is financed entirely with service charges billed to customers along with
other utility fees such as water, sanitary sewer and surface water management fees. Street lights
fees are proposed to increase in 2011 as a result of electric rate increases.
Utility Rates
Proposed rates for the coming year are as follows:
15
2011
Increase
Quarterly ratesBasisProposed
Water baseAccount
$ 3.60 $ -
Water tier 1 (<30 thousand gallons)Gallonage
$ 0.85 $ 0.06
Water tier 2 (30 - 49 thousand gallons)Gallonage
$ 1.34 $ 0.10
Water tier 3 (>49 thousand gallons)Gallonage
$ 2.30 $ 0.30
Water testing fee
$ 1.59 $ -
Sanitary sewer baseAccount
$ 6.25 $ -
Sanitary sewer usageGallonage
$ 3.09 $ 0.10
Sanitary sewer non metered accountsAccount
$ 59.84 $ 1.86
Street lightsAccount
$ 7.65 $ 0.90
Surface Water Management FeeAccount
$ 7.00 $ 0.50
A residential customer with 20 thousand gallons of usage during the winter quarter currently
pays $100.29 for their utility billing which also includes the surface water management fee. The
proposed rate structure will result in a $4.93 increase in their quarterly utility bill assuming no
change in consumption. A commercial account that uses 100 thousand gallons currently pays
approximately $434.19 per quarter. The proposed rate structure will result in a $20.16 increase
in their quarterly bill assuming no change in consumption. Overall Lakeville’s water and
sanitary sewer fees are less than those charged by other Minnesota metro area municipalities.
Commercial Quarterly Totals
Residential Quarterly Totals
Minneapolis
Minneapolis
St Paul
Savage
Inver Grove Hts.
St Paul
Richfield
Inver Grove Hts
Savage
Burnsville
Farmington
Richfield
Minnetonka
Minnetonka
Bloomington
Eden Prairie
Burnsville
Shakopee
Coon Rapids
Bloomington
LAKEVILLE
Brooklyn Park
Apple Valley
Woodbury
Plymouth
Plymouth
Blaine
Coon Rapids
Eagan
Apple Valley
EaganBrooklyn Park
Farmington
Shakopee
Blaine
Eden Prairie
LAKEVILLE
Woodbury
Rosemount
Rosemount
Maple Grove
Maple Grove
$-$100$200$300$400
$-$100$200$300$400$500$600$700$800
Water 75,000 GallonsSewer 18,000 GallonsWater 100,000 GallonsSewer 100,000 Gallons
Internal Service Municipal Reserves Fund
16
The Internal Service Municipal Reserves Fund was created to account for the City’s general
liability, excess liability, and property and casualty insurance costs. The City’s primary
insurance carrier is the League of Minnesota Cities Insurance Trust (LMCIT). Revenues are
derived primarily by transfers from benefited funds, and insurance rebates. The City’s risk
management costs are very reasonable due to its favorable claims history and management
practices. The favorable claims history is due in large part to the safety conscientiousness of its
employees.
Distinguished Budget Presentation Award
The Government Finance Officers Association of the United States and Canada (GFOA)
presented a Distinguished Budget Presentation Award to the City of Lakeville, Minnesota for its
annual budget for the fiscal year beginning January 1, 2010. In order to receive this award, a
government must publish a budget document that meets program criteria as a policy document,
as an operations guide, as a financial plan, and as a communications device. This award is valid
for a period of one year only. We believe the 2011 budget continues to conform to program
requirements, and we are submitting it to the GFOA to determine its eligibility for another
award.
Conclusion
Lakeville residents value the quality of life in our community which is derived in large part from
the safe and secure neighborhoods; abundant parks, open spaces and trails; an excellent
transportation system; environmental amenities; and a diverse commercial/industrial base. These
are the reasons our residents and businesses consider Lakeville as their “home”.
The role of government is to provide public services deemed to be of value to the people we
serve. Commitment to providing quality and efficient services, developing effective
partnerships, promoting comprehensive planning and seeking citizen participation remains a high
priority.
The challenge before us is to maintain the balance of fiscal stewardship during a period of
unprecedented economic stress with the continuation of service which meets our community’s
expectations. The proposed budget and tax levy maintains that delicate balance of services in a
fiscally responsible manner.
Respectfully submitted,
Steven C. Mielke
City Administrator
17
18
CITY OF LAKEVILLE, MINNESOTA
Elected and Appointed Officials
Elected Officials
Term of Office
Mayor Holly Dahl 01/01/09 – 12/31/10
Council Members Mark Bellows 01/01/07 – 12/31/10
Kevin Miller 07/20/09 – 12/31/10
Laurie Rieb 01/01/09 – 12/31/12
Kerrin Swecker 01/01/09 – 12/31/12
Appointed Officials
City Administrator Steven C. Mielke
Finance Director/Treasurer Dennis Feller
City Clerk Charlene Friedges
Police Chief Thomas Vonhof
Fire Chief Michael Meyer
Director of Operations & Maintenance Christopher Petree
Parks and Recreation Director Gerald Michaud
Planning Director Daryl Morey
Community and Economic Development Director David Olson
City Engineer Keith Nelson
Liquor Director Brenda Visnovec
Human Resources Manager Cindi Joosten
19
Au thority
CITY OF LAKEVILLE, MINNESOTA
Organizational Structure
December 31, 2009
Citizens of Lakeville
Mayor and City Council
Housing and
Redevelopment
Authority
City Attorney
Economic Parks, Recreation &
Planning Telecommunications Lakeville Area
Development Natural Resources
Commission Committee Arts Center Board
Commission Committee
City Administrator
Communications
Community and
Human
Operations and Parks and
Off Sale
Police Engineering
Finance
Fire
Planning Economic
Resources
Maintenance Recreation
Liquor
Development
Streets
Accounting Development
Communication
Plan Review
Labor Relations
Inspection
Planning/Zoning Building Inspection Utilities
Accounts Receivable Maintenance
Investigation
Design
Compensation/Benefits
Prevention
Physical Facilities
Recycling Economic Development Accounts Payable Planning
Patrol Inspection
Recruitment
Suppression
Utility Billing Fleet Management Recreation
Survey
Animal Control
Information Systems Special Assessments Arts Center
G.I.S.
20
CITY OF LAKEVILLE, MINNESOTA
Relationships Between Departments and Funds
December 31, 2010
Community
General andOperations
GovernmentEconomicandParks andOff-Sale
FundsAdmin.DevelopmentFinancePoliceFireEngineeringMaintenanceRecreationLiquor
General FundXXXXXXXX
Special Revenue Funds:
CommunicationsX
Compensation LiabilityX
Environmental ResourcesX
Economic DevelopmentX
Debt Service Funds:X
Capital Projects Funds:
Municipal State AidX
Pavement Mgmt.XX
Improvement Const.X
BuildingXXXXXX
EquipmentXXXX
Trail ImprovementXXX
Park DedicationX
Storm SewerXX
WaterXX
Sanitary SewerXX
Tax IncrementXX
Enterprise Funds:
LiquorX
UtilityX
Internal Service Fund:
Municipal ReservesX
21
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 a separate section.
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. 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 and Utility Fund, and the Internal Service Municipal Reserves Fund.
A budget is not adopted for the City’s Fiduciary Agency Fund. 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.
22
FINANCIAL AND BUDGET POLICIES
(continued)
Operating Budgets
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 period’s 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. Other sources can include that portion of General Fund
balance that is allowed to be budgeted for use per the City’s fund balance policy. The budget will
provide for adequate maintenance of capital facilities and equipment and for their orderly
replacement.
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 Fund shall be sufficient to support
such activities, with no trend of operating deficits.
Budget amounts are as originally 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
department level for the General Fund and total expenditures for Special Revenue Funds. The
City Administrator has authorization to expend funds in excess of the appropriation for
individual line items. Budgeted expenditure appropriations lapse at year-end. Supplementary
appropriations can be carried forward to the following year if approved by the City Council.
Encumbrances represent purchase commitments outstanding at year-end and are reported as
reservations of fund balances since they do not constitute expenditures or liabilities. Any
changes to the budget are approved by majority vote of 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 amended in December of the current fiscal year while amendments due to
special circumstances or unexpected events such as emergencies are amended at the earliest
possible City Council meeting date.
Revenue Policies
Revenue policy elements include:
The City will project its annual revenues by a conservative objective and thorough
analytical process.
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).
23
FINANCIAL AND BUDGET POLICIES
(continued)
Ongoing, the City will review the full cost of activities supported by user fees to identify
the impact of inflation and other cost increases and will review these fees along with the
resulting net property tax costs with the City Council at budget time. 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.
Investment interest shall be budgeted conservatively.
Investments
Investments made by the City will be in conformance with the City of Lakeville’s
Investment Policy. All investments will address safety, liquidity, and yield. All
temporary cash surpluses 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 funds average monthly cash balance for the year.
Capital Improvement Budgets
Capital outlay expenditures result in the acquisition of fixed capital assets that have a
value over $1,000 and 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 budget 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,
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 City will identify the estimated cost and potential funding sources for each capital
project proposal before it is submitted to the Council for approval and in that process will
determine the most effective financing method for the project.
24
FINANCIAL AND BUDGET POLICIES
(continued)
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 and/or funds
established for equipment replacement.
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 limit the legal debt obligations to 3% of the City’s taxable
market value.
Fund Balance
Fund balance or net assets are terms used to define the difference between a fund’s assets over its
liabilities. Fund balance is used in governmental fund types and net assets are used in proprietary
fund types. The City’s General Fund unreserved 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 various contingencies including 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, state street aid, or PERA 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.
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
2011 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 2011 budget process:
April 2010
City Administrator directs staff to prepare their budget based on Council goals and
objectives.
Finance Department distributes budget preparation information to all departments.
Proposed budget meetings are held with Department Directors and budget preparers.
June/July 2010
Proposed budgets are submitted to the City Administrator and Finance Department.
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.
August 2010
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 2010
Special City Council meeting to discuss the proposed budget and preliminary property
th
tax levy as presented to the City Council at their September 7 meeting for approval.
th
Preliminary property tax levy certified to Dakota County by September 15.
November 2010
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 2010
City Council holds a “Truth in Taxation” public hearing on the final budget and final
th
property tax levy on December 6.
After listening to public comment, the City Council closes the public hearing.
th
City Council adopts the final budget and final property tax levy on December 20.
th
Final property tax levy certified to Dakota County by December 25.
26
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. Certain City funds are classified according to generally accepted
accounting principles as major funds (generally defined as a fund 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). 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. The general fund is
a major fund.
Special Revenue Funds
The special revenue fund is 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
Compensation liability
Environmental resources
Economic development
Debt Service Funds
The debt service fund is 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. The debt service property taxes fund is considered a major fund of
the City. Debt service funds utilized by the City include the following:
Special assessments
Property taxes
State-aid
Tax increment
Water revenue
Arena revenue
HRA lease revenue
Capital Projects Funds
The capital projects fund is 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 budget
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.
27
DESCRIPTION OF CITY FUNDS AND ACCOUNTING STRUCTURE
(continued)
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
Building
Equipment
Trail improvement
Park dedication
Storm sewer
Water
Sanitary sewer
Tax increment
Police station and central maintenance facility (CMF) construction
Ice arena construction
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 fund is 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 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. The budget for the
City’s enterprise liquor fund and enterprise utility fund are major funds.
Internal Service Fund
The internal service fund is used to account for the financing of goods or services
provided by one City department to other City departments. The only internal service
fund utilized by the City is the municipal reserves fund.
28
CITY OF LAKEVILLE, MINNESOTA
Strategic Plan
Mission Statement
“The City of Lakeville provides the foundation for healthy neighborhoods and successful
businesses by investing in: comprehensive planning; high quality and efficient services; citizen
participation; and effective partnerships.”
The City of Lakeville espouses to advance, through implementation of the 2010 Proposed
Budget and Capital Improvement Plan the following community and organizational goals:
RPC
ESPONSIBLE ERFORMANCE OMPLETION
G I
OALSTEM
D C
EPARTMENTRITERIASTATUS
TAXES (SERVICES) GOALS
Maintain and
Remain in the lower
Achieved in
communicate the core
third of tax rates in
A-1 City Administration
2009
level of services expected
Dakota County
by Lakeville residents
Attract business
Community and Reduction in property
development to increase
Economic tax dependence from
A-2 Ongoing
commercial/industrial tax
Development the current 70%
base
Continue to develop
collaborations/
partnerships with private
A-3 City Administration Ongoing
interests and other
governments on key
projects
Identify and evaluate
A-4 Finance Ongoing
alternatives to the property
tax for paying for services
Work in
Acquire land for fourth
A-5 Liquor Fund
Progress
liquor store
TRANSPORTATION GOALS
Reduce reliance on City
Reduction in reliance
property taxes for
on City property taxes
B-1 Finance Ongoing
regional/county road
for non-city roadway
improvements
Continue needed
Complete County
Completed in
improvements to local,
Road 70/I-35
B-2 Engineering
2009
county and regional
interchanges by 2010
transportation network:
Complete
improvement of Dodd Scheduled for
East-West
B-3 Engineering
Blvd. from 194th Year 2012
corridors
Street to Cedar Ave
29
CITY OF LAKEVILLE, MINNESOTA
Strategic Plan
(continued)
RPC
ESPONSIBLE ERFORMANCE OMPLETION
G I
OALSTEM
D C
EPARTMENTRITERIASTATUS
Work in
Upgrade County Road
Interstate Highway
Progress - Yet to
B-4 Engineering
70 through Lakeville
35 interchanges
be determined
Dodd Blvd. as a
More safety, less
major artery
Work in
congestion, economic
linking Lakeville
Progress - Yet to
B-5 Engineering
development
residents to the
be determined
opportunities
East-West corridor
routes
TELECOMMUNICATION GOALS
Community and Have a plan and
Complete feasibility
Open - Yet to be
Economic ordinance by the
C-1
planning for fiber to all
determined
Development Council
homes and businesses
DOWNTOWN REDEVELOPMENT GOALS
Community and Expand the types of
Continue to attract private
Economic businesses that are
D-1 Ongoing
investment to fund
Development open downtown
downtown redevelopment
Community and Implement a publicly
Yet to be
Economic managed parking
D-2
determined
Development system
Enhance public amenities
in downtown
Community and
Full service restaurant
Yet to be
Economic
D-3
in Central Business
determined
Development
District
OPEN SPACES / RECREATION GOALS
Park dedication fees
E-1 Parks and Recreation Ongoing
reflect true land values
Provide parks and open
Expansion of City
space for a fully developed
park land as planned
City prior to the loss of
E-2 Parks and Recreation Ongoing
in the Parks and Open
available and desired land
Space Plan
to develop
Passage of a park Yet to be
E-3 Parks and Recreation
referendum determined
PUBLIC SAFETY GOALS
Improved
measurements in
proactive police
Be a regional leader in
activities, as
F-1 Police Ongoing
disaster preparedness
developed by the
Police Chief
30
CITY OF LAKEVILLE, MINNESOTA
Strategic Plan
(continued)
RPC
ESPONSIBLE ERFORMANCE OMPLETION
G I
OALSTEM
D C
EPARTMENTRITERIASTATUS
Prioritize police officer
time on core law
F-2 Police Ongoing
enforcement – patrol and
investigative functions
PLANNING GOALS
G-1
Plan for balance of
housing types, including
Finish and implement
Completed in
workforce and life-cycle
2008 Comprehensive
Planning
2009
housing that reflect the
Land Use Plan
changes in Lakeville’s
population
G-2
Facilitate development of
Planning Ongoing
new housing types without
cost to the City
G-3
Continue orderly
Planning Ongoing
development of Lakeville
TRANSIT GOALS
Complete a full
assessment of what
Lakeville residents
Prepare Lakeville for
H-1 City Administration Ongoing
need and the ridership
transit services
potential of transit
alternatives
COMMUNITY AND ECONOMIC DEVELOPMENT GOALS
Attract interest from
Community and
private developers for
Economic
I-1 Ongoing
office park
Development
development
Plan and prepare for office
park development in
Location and
Lakeville
Community and timetable for office
I-2 Economic park agreed upon by Ongoing
the Council and the
Development
developer
OTHER GOALS
Adopt long-term
infrastructure
maintenance and
Provide for framework for
refurbishment
long-term maintenance,
J-1 Engineering Ongoing
program, including the
replacement and financing
plan needed to finance
of aging infrastructure
the improvements
31
CITY OF LAKEVILLE, MINNESOTA
Strategic Plan
(continued)
RPC
ESPONSIBLE ERFORMANCE OMPLETION
G I
OALSTEM
D C
EPARTMENTRITERIASTATUS
Reduce consumption
Operations and
of water per customer
Maintenance (Utility
J-2 Ongoing
over the next three
Fund)
years
Develop and
Operations and implement a
Provide a sustainable
J-3 Maintenance (Utility comprehensive public Ongoing
source of water supply for
information campaign
Fund)
Lakeville’s future
on water supply
Adopt a stronger
Operations and conservation policy to
J-4 Maintenance (Utility address diminishing Ongoing
water supply for
Fund)
future development
32
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
The City of Lakeville maintains a number of funds for recording fiscal transactions to meet legal
accounting requirements. The City’s revenue estimates are budgeted conservatively to avoid
possible shortfalls due to unanticipated changes in the economy. A review of all fee structures is
completed with the preparation of the budget to ensure that rates are reasonable.
Revenue estimation is a key component in preparing the City’s annual budget. The general
intent is to make conservative and objective projections. The City’s approach to estimating
revenues is to consider each individual revenue source’s history of predictability, stability or
volatility. The estimation methods used are a combination of trend analysis and forecasting from
department heads.
The following is a summary of major revenue sources, trends and assumptions for fiscal year
2011.
Governmental Fund Revenues
The 2011 proposed budget revenue of $33,053,550 is an $893,936 decrease over 2010 estimate.
General Property Taxes.
The City General Property Taxes
relies on property taxes to support such
functions as general government,
$24,000,000
public safety, public works and debt
$23,800,000
service. The 2011 tax levy is
$23,600,000
$24,041,652 of which $16,980,571 is
$23,400,000
appropriated to General Fund,
$23,200,000
$4,959,746 to Debt Service Funds, and
$23,000,000
$2,101,335 to the Capital Projects
$22,800,000
Funds. The property tax levy was
$22,600,000
increased by $788,027 in both 2011
and 2012 due to the loss of Market
$22,400,000
2009201020112012
Value Homestead Credit. A further
ActualEstimateProposedEstimate
detailed discussion follows in the
section entitled “Property Taxes”.
Licenses and Permits.
Liquor licenses, building,
heating, plumbing and other building related permits,
Licenses and Permits
and cable TV license franchise fees are examples of
revenue collected by the City for this category.
Building permits are the largest component and account
$2,500,000
for $1,062,037 (58.9%) of total licenses and permits
revenues. Residential construction is at a 25 year low
$2,000,000
due to economic conditions in the housing and financial
$1,500,000
sectors. The number of building permits issued for
2011 are expected to increase slightly more than 2010
$1,000,000
estimates. Commercial and industrial construction is
also expected to increase from the 2010 estimates. No
$500,000
fee increases are proposed for the 2011 budget.
$0
2009201020112012
ActualEstimateProposedEstimate
33
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
(continued)
20092010201020112012
Residential BuildingActualBudgetEstimateProposedEstimated
construction (dwelling units)
Single family 126 100 140 165 193
Town-homes 48 20 19 20 29
Total 174 120 159 185 222
Commercial and industrial
valuation
$ 7,300,000$ 5,000,000$ 5,000,000$ 10,000,000$ 10,000,000
Intergovernmental Revenue
Intergovernmental Revenues.
The
$4,000,000
intergovernmental revenue classifications
consist of grants and aids from Federal,
State, County, and local governments. In
$3,000,000
2009, the City received $811,000 in
Federal grant funding for the Highview
Avenue reconstruction project. The 2011
$2,000,000
estimated State aid street maintenance
allotment is $374,962 and is consistent
$1,000,000
with the 2010 estimated allotment. Other
major 2011 intergovernmental revenues
include State aid for debt service
$0
($905,303), State aid for police
2009201020112012
($351,624), and fire relief pension
ActualEstimateProposedEstimate
($190,209).
Charges for Services.
This classification includes user charges or reimbursements received
from those who benefited from services provided such as park and recreation programs, general
government services, public safety fees and public works related revenues. Revenues which are
highly sensitive to construction and development (i.e. planning and engineering fees) are
estimated to continue declining in the coming year.
20092010201020112012
Platting ActivitiesActualBudgetEstimateProposedEstimated
(dwelling units platted)
Single family 30 50 50 100 200
34
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
(continued)
General government
charges for services are anticipated to be $189,989 for 2011 which is an
increase of $40,733 over 2010 estimate. The increase is primarily due to a slight increase in
Public safety
development and increased fiscal management fees. charges for servicesare
estimated at $285,843 for 2011, which is a $6,460 increase from 2010 estimate. The largest
public safety charge is Independent School District #194 reimbursement for the School Resource
Officer ($153,985).
Public works
charges for services are estimated to
Charges for Services
be $2,417,870 for 2011, which is an increase of
$349,256 over 2010 estimate. The net increase is
the result of a proposed surface water management
$6,000,000
charge rate increase in 2011 ($69,442). Engineering
$5,000,000
development related activities increasing $1,098,
and utility connection increasing $50,930 due to the
$4,000,000
anticipated moderate increase in platting activities.
$3,000,000
$2,000,000 Parks, recreation and arts center
chargesfor
servicesfor 2011 are estimated to be $897,958,
$1,000,000
which is an increase of $56,781 over 2010 estimate.
The increase is primarily due to park dedication
$0
fees.
2009201020112012
ActualEstimateProposedEstimate
The City endeavors to generate non-property tax revenues. As such, new charges for services
will continue to be explored as existing charges will be examined periodically for comparability
with other communities for appropriate levels of cost recovery.
Court Fines
Court Fines
for 2011 are anticipated
to increase $5,766 over the 2010
$300,000
estimate. The City receives a portion
of the fines and penalties for traffic
$295,000
violations. The distribution of the
fines depends upon what violation,
$290,000
fines or forfeiture occurred and if the
$285,000
arresting officer was a Lakeville
Police Officer or a Minnesota State
$280,000
Patrol Officer.
$275,000
2009201020112012
ActualEstimateProposedEstimate
35
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
(continued)
Special Assessments
Special Assessments
are estimated at
$483,150, which is a decrease of ($42,315)
from 2010 estimate.A portion of the costs
for public improvements are recovered by
$800,000
assessment charges to the benefiting
property owners. These collections are
$600,000
primarily appropriated towards the payment
of debt service.
$400,000
$200,000
$0
2009201020112012
Investment Income
ActualEstimateProposedEstimate
Investment Income
is estimated to be $282,729
$500,000
in 2011, which is consistent with the 2010
$450,000
estimate. Interest rates dropped significantly
$400,000
starting in mid-2008 as a result of investor
$350,000
“flight to quality.”; based on current market
$300,000
conditions there appears to be no substantive
$250,000
changes in the foreseeable future. Interest
$200,000
earnings are allocated to various funds on the
$150,000
basis of average monthly cash balances; there are
$100,000
no significant changes in interest rates
$50,000
anticipated for the coming year.
$0
2009201020112012
Donations
ActualEstimateProposedEstimate
Donations
are estimated to be $138,685 in
$400,000
2011, which is a ($25,783) decrease from
2010 estimate. The largest single donation
$300,000
represents pull-tab revenue from the
Lakeville Hockey Boosters ($113,590) that
$200,000
is pledged towards debt service payments of
the Lakeville Ames Arena.
$100,000
$0
2009201020112012
ActualEstimateProposedEstimate
36
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
(continued)
Miscellaneous
Miscellaneous
revenue is estimated to be
$346,506 in 2011, which is a decrease of
($658,253) from the 2010 estimate. The
$1,000,000
decrease is due to a $540,067 scheduled
payment in 2010 from Life Time Fitness for
$750,000
land sold in 2006. Antenna site leases by
wireless communications companies
$500,000
($244,536) are accounted for in the General
Fund and the Capital Projects Water Fund.
The remaining miscellaneous revenue items
$250,000
include disposal of assets ($83,070) and other
($18,900).
$0
20092011
Transfers to General Fund
ActualProposed
$900,000
$750,000
Transfers to General Fund
($655,652)
$600,000
typically represent a reimbursement for
$450,000
cost of services such as human relations,
$300,000
information technology, and financial
activities provided to the benefiting fund.
$150,000
$0
2009201020112012
ActualEstimateProposedEstimate
Proprietary Fund Revenues
The Proprietary Funds 2011 total proposed budget revenue of $13,546,137 is a $1,330,371
increase over 2010 estimate. A discussion of the Enterprise Liquor and Utility Funds are as
follows:
Liquor Fund Gross Profit
Liquor Fund
gross profit consists of sales
$3,850,000
less the cost of sales (or) suppliers cost of
products sold. Gross profit in 2011 is
estimated to be approximately $3.7 million
$3,800,000
based on sales of $14.9 million less cost of
sales of $11.0 million. Sales in 2011 are
expected to increase minimally over 2010
$3,750,000
and costs of sales are projected to remain at
a fairly constant level of approximately
$3,700,000
75% of sales.
2009201020112012
ActualEstimateProposedEstimate
37
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
(continued)
Utility Fund
charges for services are primarily comprised of providing Lakeville residents and
businesses with water and sanitary sewer treatment services. Beginning in 2010 the City street
lighting program was moved from the General Fund and accounted for in the Utility Fund. The
Utility Fund charges separately for water usage and sanitary sewer treatment services based on
individual consumption; street lighting is based on a single charge per quarter per residential
dwelling unit, and a front foot charge per quarter for commercial/industrial and institutional
entities. The following graphs illustrate the revenue trends for water usage, sanitary sewer
treatment, and street lights for the years 2009 through 2012.
Utility Fund - Water Charges
Water Charges
in 2011 are expected to
$4,000,000
be approximately $3.4 million, which is a
($668,218) or (25%) increase from the
2010 estimate. The increase is due to a
$3,000,000
proposed rate increase and a wetter than
normal summer in 2010 which reduced
$2,000,000
summer watering consumption.
$1,000,000
2009201020112012
ActualEstimateProposedEstimate
Utility Fund - Sanitary Sewer Charges
$5,000,000
Sanitary Sewer Charges
in 2011 are
expected to be approximately $4.3
$4,000,000
million, which is a $117,659 or 2.8%
increase over the 2010 estimate of $3.8
$3,000,000
million. 2011 charges are based
primarily on a customer rate increase.
$2,000,000
$1,000,000
2009201020112012
ActualEstimateProposedEstimate
Utility Fund - Street Light Charges
Street Light Charges
are expected to be
approximately $640,000, which is a $74,000
$750,000
increase over 2010 estimate. As noted above,
the street lighting program was accounted for
$600,000
in the General Fund prior to 2010. The 2011
$450,000
revenue projection provides for a customer
$300,000
rate increase of $.90 per quarter due to
increased electricity rates charged by the
$150,000
electric utility companies.
$0
2009201020112012
38
ActualEstimateProposedEstimate
REVENUE SOURCES, TRENDS AND ASSUMPTIONS
(continued)
Investment Income
of the proprietary funds is estimated to be $200,274, which is a slight
increase over 2010 estimate. As similar to governmental funds, interest earnings are allocated to
various funds on the basis of average monthly cash balances; there are no significant changes in
interest rates anticipated in the 2011 budget.
Donations
of the Utility Fund represent water and sanitary sewer infrastructure that is installed
by private developers, ownership of the infrastructure is retained by the City’s Utility Fund.
Water and sanitary sewer
infrastructure installed by the City
Utility Fund - Donations
is generally financed through the
Capital Projects Water Fund or
Sanitary Sewer Fund. These
$1,500,000
infrastructure assets are contributed
to the Utility Fund as an interfund
$1,000,000
transfer in the year of completion.
Donations for 2011 are estimated
to be approximately $837,000; this
$500,000
is an increase of approximately
($600,000) from the 2010 estimate.
Donations obtained through private
$0
development have decreased
2009201020112012
significantly over the years as
ActualEstimateProposedEstimate
shown in the chart.
39
CITY OF LAKEVILLE, MINNESOTA
Combined Budgetary Funds Summary
All Appropriated Fund Types
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 22,933,682$ 23,287,471$ 23,363,196$ 23,211,978$ 23,868,365
Tax increment 851,786 887,594 868,163 868,163 859,838
Licenses and permits 1,603,909 1,452,995 1,623,119 1,802,776 2,049,580
Intergovernmental 3,165,154 2,730,304 2,690,869 1,998,311 1,951,593
Charges for services 11,948,336 12,527,214 11,215,867 12,544,942 14,247,841
Court fines 297,413 273,055 288,260 294,026 299,906
Special assessments 769,624 543,805 525,465 483,150 424,843
Investment income 690,147 438,980 427,194 483,003 546,761
Donations 1,641,999 380,744 401,801 975,519 416,975
Miscellaneous 338,369 866,634 1,018,991 346,506 724,995
3,797,780 3,683,987 3,740,327 3,748,583 3,806,738
Gross profit
48,038,199 47,072,783 46,163,252 46,756,957 49,197,435
Total revenues
Expenditures and expenses
General government 4,816,368 4,923,037 4,885,725 4,806,506 4,937,235
Public safety 8,835,563 9,878,929 9,760,008 9,999,236 10,252,819
Public works 3,906,485 3,628,288 3,567,713 3,871,230 3,876,976
Parks and recreation 2,881,402 3,228,425 3,166,410 3,243,622 3,268,764
Debt service 10,928,316 11,478,505 11,542,031 11,231,143 9,972,849
Capital outlay 7,140,715 4,891,240 7,551,437 11,663,099 11,648,078
11,696,427 13,230,064 13,106,624 13,539,190 14,195,297
Operating expenses
50,205,276 51,258,488 53,579,948 58,354,026 58,152,018
Total expenditures and expenses
Other financing sources (uses)
Transfer from other funds 5,176,969 2,969,435 5,607,734 4,726,370 3,001,564
Transfer to other funds (5,176,969) (2,969,435) (5,607,734) (4,726,370) (3,001,564)
Disposal of assets 365,196 95,000 4,500
Issuance of debt 4,945,000 5,905,000 5,965,000
Refunding bonds issued 5,180,000 2,680,000
Payment on refunded bonds called (7,955,000) (7,955,000)
116,016 - 99,322 - -
Premium on bonds issued
10,606,212 (7,955,000) (5,080,678) 5,905,000 5,969,500
Total other financing sources (uses)
Net change in fund balance and net assets 8,439,135 (12,140,705) (12,497,374) (5,692,069) (2,985,083)
153,223,158 157,202,000 161,662,293 149,164,919 143,472,850
Fund balance and net assets, January 1
$ 161,662,293$ 145,061,295$ 149,164,919$ 143,472,850$ 140,487,767
Fund balance and net assets, December 31
For a complete discussion of changes in fund balances and percentages, see individual fund sections.
40
CITY OF LAKEVILLE, MINNESOTA
Combined Budgetary Funds Summary
All Appropriated Fund Types
For the Year Ending December 31, 2011
(continued on following page)
2011 Proposed Budget
Governmental Funds
GeneralSpecialDebtCapital
FundRevenueServiceProjects
Revenues
General property taxes$ 16,150,897$ -$ 4,959,746$ 2,101,335
Tax increment 666,079 202,084
Licenses and permits 1,220,561 582,215
Intergovernmental 975,458 42,708 905,303 67,678
Charges for services 1,221,270 682,145 349,088 1,539,157
Court fines 294,026
Special assessments 456,150 27,000
Investment income 125,175 10,239 89,132 58,183
Donations 25,095 113,590
Miscellaneous 54,426 292,080
- - - -
Gross profit
20,066,908 1,317,307 7,539,088 4,287,517
Total revenues
Expenditures and expenses
General government 4,383,290 423,216
Public safety 9,992,639 6,597
Public works 3,214,096 657,134
Parks and recreation 3,241,689 1,933
Debt service 11,050,021
Capital outlay 114,235 25,228 11,523,636
- - - -
Operating expenses
20,945,949 1,114,108 11,050,021 11,523,636
Total expenditures and expenses
Other financing sources (uses)
Transfer from other funds 655,652 16,242 2,066,603 1,942,929
Transfer to other funds (254,752) (57,600) (1,781,283)
- - - 5,905,000
Issuance of debt
655,652 (238,510) 2,009,003 6,066,646
Total other financing sources (uses)
Net change in fund balance and net assets (223,389) (35,311) (1,501,930) (1,169,473)
8,615,197 2,078,198 9,856,159 10,399,692
Fund balance and net assets, January 1
$ 8,391,808$ 2,042,887$ 8,354,229$ 9,230,219
Fund balance and net assets, December 31
For a complete discussion of changes in fund balances and percentages, see fund type summary sections.
41
CITY OF LAKEVILLE, MINNESOTA
Combined Budgetary Funds Summary
All Appropriated Fund Types
For the Year Ending December 31, 2011
(continued from previous page)
2011 Proposed Budget
Total
Proprietary Funds
2011
Enterprise
Internal Service
Proposed
LiquorUtilityMunicipal Res.Budget
Revenues
General property taxes$ -$ - $ -$ 23,211,978
Tax increment 868,163
Licenses and permits 1,802,776
Intergovernmental 3,900 3,264 1,998,311
Charges for services 8,325,784 427,498 12,544,942
Court fines 294,026
Special assessments 483,150
Investment income 63,600 130,727 5,947 483,003
Donations 836,834 975,519
Miscellaneous 346,506
3,748,583 - - 3,748,583
Gross profit
3,816,083 9,296,609 433,445 46,756,957
Total revenues
Expenditures and expenses
General government 4,806,506
Public safety 9,999,236
Public works 3,871,230
Parks and recreation 3,243,622
Debt service 181,122 11,231,143
Capital outlay 11,663,099
2,336,076 10,823,052 380,062 13,539,190
Operating expenses
2,517,198 10,823,052 380,062 58,354,026
Total expenditures and expenses
Other financing sources (uses)
Transfer from other funds 44,944 4,726,370
Transfer to other funds (1,116,575) (1,471,725) (44,435) (4,726,370)
Issuance of debt 5,905,000
(1,116,575) (1,426,781) (44,435) 5,905,000
Total other financing sources (uses)
Net change in fund balance and net assets 182,310 (2,953,224) 8,948 (5,692,069)
7,128,147 110,492,853 594,673 149,164,919
Fund balance and net assets, January 1
$ 7,310,457$ 107,539,629$ 603,621$ 143,472,850
Fund balance and net assets, December 31
For a complete discussion of changes in fund balances and percentages, see fund type summary sections.
42
CITY OF LAKEVILLE, MINNESOTA
Combined Budgetary Funds Summary
All Appropriated Fund Types
For the Year Ending December 31, 2012
(continued on following page)
2012 Estimated Budget
Governmental Funds
GeneralSpecialDebtCapital
FundRevenueServiceProjects
Revenues
General property taxes$ 16,597,723$ -$ 5,699,181$ 1,571,461
Tax increment 657,754 202,084
Licenses and permits 1,449,898 599,682
Intergovernmental 975,458 42,708 908,963 17,300
Charges for services 1,275,508 679,209 418,144 2,700,426
Court fines 299,906
Special assessments 397,843 27,000
Investment income 166,900 14,179 85,327 53,508
Donations 25,263 144,790
Miscellaneous 55,541 669,454
- - - -
Gross profit
20,846,197 1,335,778 8,312,002 5,241,233
Total revenues
Expenditures and expenses
General government 4,491,932 445,303
Public safety 10,246,024 6,795
Public works 3,309,426 567,550
Parks and recreation 3,266,773 1,991
Debt service - 9,799,206 -
Capital outlay 46,789 34,420 11,566,869
- - - -
Operating expenses
21,360,944 1,056,059 9,799,206 11,566,869
Total expenditures and expenses
Other financing sources (uses)
Transfer from other funds 677,349 6,190 1,812,503 459,900
Transfer to other funds (252,807) (59,900) (1,527,183)
Disposal of assets
- - - 5,965,000
Issuance of debt
677,349 (246,617) 1,752,603 4,897,717
Total other financing sources (uses)
Net change in fund balance and net assets 162,602 33,102 265,399 (1,427,919)
8,391,808 2,042,887 8,354,229 9,230,219
Fund balance and net assets, January 1
$ 8,554,410$ 2,075,989$ 8,619,628$ 7,802,300
Fund balance and net assets, December 31
For a complete discussion of changes in fund balances and percentages, see fund type summary sections.
43
CITY OF LAKEVILLE, MINNESOTA
Combined Budgetary Funds Summary
All Appropriated Fund Types
For the Year Ending December 31, 2012
(continued from previous page)
2012 Estimated Budget
Total
Proprietary Funds
2012
Enterprise
Internal Service
Estimated
LiquorUtilityMunicipal Res.Budget
Revenues
General property taxes$ -$ - $ -$ 23,868,365
Tax increment 859,838
Licenses and permits 2,049,580
Intergovernmental 3,900 3,264 1,951,593
Charges for services 8,735,499 439,055 14,247,841
Court fines 299,906
Special assessments 424,843
Investment income 56,793 164,018 6,036 546,761
Donations 246,922 416,975
Miscellaneous 724,995
3,806,738 - - 3,806,738
Gross profit
3,867,431 9,149,703 445,091 49,197,435
Total revenues
Expenditures and expenses
General government 4,937,235
Public safety 10,252,819
Public works 3,876,976
Parks and recreation 3,268,764
Debt service 173,643 9,972,849
Capital outlay 11,648,078
2,410,358 11,394,654 390,285 14,195,297
Operating expenses
2,584,001 11,394,654 390,285 58,152,018
Total expenditures and expenses
Other financing sources (uses)
Transfer from other funds 45,622 3,001,564
Transfer to other funds (438,055) (677,852) (45,767) (3,001,564)
Disposal of assets 4,500 4,500
- - - 5,965,000
Issuance of debt
(438,055) (627,730) (45,767) 5,969,500
Total other financing sources (uses)
Net change in fund balance and net assets 845,375 (2,872,681) 9,039 (2,985,083)
7,310,457 107,539,629 603,621 143,472,850
Fund balance and net assets, January 1
$ 8,155,832$ 104,666,948$ 612,660$ 140,487,767
Fund balance and net assets, December 31
For a complete discussion of changes in fund balances and percentages, see fund type summary sections.
44
PROPERTY TAXES
Tax Levy
The primary objective for the coming year was to establish a tax levy with no increase for the
coming year. The estimated 2012 tax levy increases primarily as result of street reconstruction
thst
projects and for the Kenrick Avenue improvements from 175 to 181 Street. The 2011
proposed tax levy and estimated tax levy for 2012 is as follows:
2011Increase/2012Increase/
PurposeProposed(Decrease)Estimate(Decrease)
General Fund$ 16,192,544$ (21,864)$ 16,642,460$ 449,916
General Fund - Market Value Homestead 788,027 157,466 788,027 -
Street Improvement Bonds 2,116,223 (415,262) 2,683,980 567,757
Pavement Management 1,546,958 288,270 1,198,487 (348,471)
Capital Improvement Bonds - Police 908,488 39,625 961,196 52,708
Capital Improvement Bonds - CMF 857,757 26,582 883,000 25,243
Equipment acquistion and replacement 554,377 554,377 372,974 (181,403)
Park Bonds 424,744 7,225 416,531 (8,213)
Equipment Certificates of Indebtedness 325,863 (640,200) 230,592 (95,271)
Ice Arena Bonds 275,070 3,781 281,033 5,963
Street Improvement Bonds (Kenrick Ave.) 191,248 191,248
Arts Center Bonds 51,601 - 51,601 -
Total tax levy$ 24,041,652$ -$ 24,701,129$ 659,477
% increase0.0%2.7%
Property Tax: Levy limits
The 2008 State of Minnesota Governor and Legislature re-imposed levy limits for the budget
years 2009, 2010 and 2011. Tax increases are limited to 3.9% or the increase in the implicit
price deflator – whichever is less. The actual implicit price deflator is 1.68%. The tax levy can
also be increased by half the increase in growth. As the residential construction industry
recovers, this levy limit constraint could be an ominous factor for financing future operating
costs.
45
PROPERTY TAXES
(continued)
Special levies are also allowed for public safety (police and fire) personnel, pensions, debt
service and market value homestead credit. The Levy Limit calculation is as follows:
20112012
IncreaseIncrease
Tax Levy(decrease)Tax Levy(decrease)
Levy limit base$ 11,388,598 $ 392,186$ 11,623,753 $ 235,155
Special levies$ 13,173,940 $ (557,830)$ 13,971,275 $ 797,335
Total levy limit$ 24,562,538 $ (165,644)$ 25,595,028 $ 1,032,490
Proposed tax levy$ 24,041,652 $ -$ 24,701,129 $ 659,477
Levy limit capacity$ 520,886 $ (165,644)$ 893,899 $ 373,013
State Aid: Property Tax Relief – Market Value Homestead Credit
The State Legislature created the Market Value Homestead Credit (MVHC) program in 2001 to
provide state-paid property tax relief to owner’s homesteaded residential property. The credit is
equal to 0.4% of the homestead’s market value up to a maximum credit of $304. The maximum
credit of $304 occurs at a market value of $76,000. For homesteads with market values over
$76,000, the credit is reduced by .09% of the excess market value. Homesteads with a market
value of $413,788 and higher do not receive any credit. Non-residential properties are also not
eligible to receive the credit.
The original legislation was intended to reimburse cities for the property tax credits provided to
homeowners. However, the Legislature has permanently eliminated the reimbursement to
certain cities, such as Lakeville, as one method of addressing its budget issues.
46
PROPERTY TAXES
(continued)
Tax Levy Analysis
The following is a comparison of the 2010 and 2011 tax levies as applied to the various General
Fund departments, equipment acquisitions, pavement management, and debt service.
$Percent
20102011Increase/Increase/
Tax LevyTax Levy(Decrease)(Decrease)
Mayor and Council$ 112,602$ 115,833$ 3,2312.9%
Committees and Commissions 48,868 53,291 4,4239.1%
City administration 268,385 283,761 15,3765.7%
City Clerk 170,505 116,057 (54,448)(31.9%)
Finance 416,690 409,625 (7,065)(1.7%)
Information systems 375,889 387,818 11,9293.2%
Human resources 224,084 232,028 7,9443.5%
Insurance 283,420 293,555 10,1353.6%
Legal counsel 66,236 66,037 (199)(0.3%)
Planning 357,386 323,514 (33,872)(9.5%)
Community and econ. development 269,304 274,754 5,4502.0%
Inspections 147,394 - (147,394)(100.0%)
General government facilities 425,973 405,445 (20,528)(4.8%)
Total general government 3,166,736 2,961,718 (205,018)(6.5%)
Police 7,267,804 7,474,979 207,1752.9%
Fire 1,153,385 1,109,927 (43,458)(3.8%)
Total public safety 8,421,189 8,584,906 163,7171.9%
Engineering 328,523 455,130 126,60738.5%
Streets 1,917,493 1,969,413 51,9202.7%
Total public works 2,246,016 2,424,543 178,5277.9%
Parks 2,153,514 2,169,305 15,7910.7%
Recreation 309,472 300,749 (8,723)(2.8%)
Arts Center 233,737 230,281 (3,456)(1.5%)
Total parks and recreation 2,696,723 2,700,335 3,6120.1%
Contingency 314,306 309,069 (5,237)(1.7%)
Total general fund operations 16,844,970 16,980,571 135,6010.8%
Equipment acquisitions - 554,377 554,377100.0%
Pavement management 1,258,688 1,546,958 288,27022.9%
Total capital projects 1,258,688 2,101,335 842,64766.9%
Street Improvement Bonds 2,531,485 2,116,223 (415,262)(16.4%)
Equipment Certificates of Indebtedness 966,063 325,863 (640,200)(66.3%)
Capital Improvement Bonds - Police 868,863 908,488 39,6254.6%
Capital Improvement Bonds - CMF 831,175 857,757 26,5823.2%
Park Bonds 417,519 424,744 7,2251.7%
Ice Arena Bonds 271,289 275,070 3,7811.4%
Arts Center Bonds 51,601 51,601 -0.0%
Total debt service 5,937,995 4,959,746 (978,249)(16.5%)
Total City wide levy$ 24,041,653$ 24,041,652$ (1)(0.0%)
47
PROPERTY TAXES
(continued)
The following is a graphic representation of the changes in the 2011 tax levy from the 2010 tax
levy by the various programs and debt service.
CHANGES IN TAX LEVY 2010-2011
Equipment Acquisitions$554,377
Pavement management$288,270
Police$207,175
Engineering
$126,607
Streets$51,920
Parks$15,791
City administration$15,376
Information systems
$11,929
Insurance$10,135
Human resources$7,944
Community and econ. Develop.$5,450
Committees/Commissions
$4,423
Mayor and Council$3,231
Legal counsel$(199)
Arts Center$(3,456)
Finance
$(7,065)
Contingency$(5,237)
Recreation$(8,723)
General government facilities$(20,528)
Planning
$(33,872)
Fire$(43,458)
City Clerk$(54,448)
Inspections$(147,394)
Debt service
$(978,249)
$(1,000,000) $(750,000) $(500,000) $(250,000) $- $250,000 $500,000
$ Changes
The following is a comparison of the 2011 and 2012 tax levies as applied to the various General
Fund departments, equipment acquisitions, pavement management, and debt service.
48
PROPERTY TAXES
(continued)
$Percent
20112012Increase/Increase/
Tax LevyTax Levy(Decrease)(Decrease)
Mayor and Council$ 115,833$ 112,651$ (3,182)(2.7%)
Committees and Commissions 53,291 54,882 1,5913.0%
City administration 283,761 287,634 3,8731.4%
City Clerk 116,057 180,352 64,29555.4%
Finance 409,625 409,082 (543)(0.1%)
Information systems 387,818 399,952 12,1343.1%
Human resources 232,028 235,359 3,3311.4%
Insurance 293,555 304,335 10,7803.7%
Legal counsel 66,037 66,450 4130.6%
Planning 323,514 309,946 (13,568)(4.2%)
Community and econ. development 274,754 276,620 1,8660.7%
Inspections - - -0.0%
General government facilities 405,445 403,872 (1,573)(0.4%)
Total general government 2,961,718 3,041,135 79,4172.7%
Police 7,474,979 7,783,870 308,8914.1%
Fire 1,109,927 1,072,925 (37,002)(3.3%)
Total public safety 8,584,906 8,856,795 271,8893.2%
Engineering 455,130 431,413 (23,717)(5.2%)
Streets 1,969,413 2,055,545 86,1324.4%
Total public works 2,424,543 2,486,958 62,4152.6%
Parks 2,169,305 2,200,667 31,3621.4%
Recreation 300,749 319,365 18,6166.2%
Arts Center 230,281 216,498 (13,783)(6.0%)
Total parks and recreation 2,700,335 2,736,530 36,1951.3%
Contingency 309,069 309,069 -0.0%
Total general fund operations 16,980,571 17,430,487 449,9162.6%
Equipment Fund 554,377 372,974 (181,403)(32.7%)
Pavement management 1,546,958 1,198,487 (348,471)(22.5%)
2,101,335 1,571,461 (529,874)(25.2%)
Street Improvement Bonds 2,116,223 2,875,228 759,00535.9%
Equipment Certificates of Indebtedness 325,863 230,592 (95,271)(29.2%)
Capital Improvement Bonds - Police 908,488 961,196 52,7085.8%
Capital Improvement Bonds - CMF 857,757 883,000 25,2432.9%
Park Bonds 424,744 416,531 (8,213)(1.9%)
Ice Arena Bonds 275,070 281,033 5,9632.2%
Arts Center Bonds 51,601 51,601 -0.0%
Total debt service 4,959,746 5,699,181 739,43514.9%
Total City wide levy$ 24,041,652$ 24,701,129$ 659,4772.7%
The following is a graphic representation of the changes in the 2012 tax levy from the 2011 tax
levy by the various programs and debt service.
49
PROPERTY TAXES
(continued)
CHANGES IN TAX LEVY 2011-2012
Debt service$739,435
$308,891
Police
Streets$86,132
City Clerk$64,295
Parks$31,362
Recreation$18,616
Information systems$12,134
Insurance$10,780
$3,873
City administration
Human resources$3,331
Community and econ. Develop.$1,866
$1,591
Committees/Commissions
Legal counsel$413
Contingency$-
Inspections$-
Finance$(543)
General government facilities$(1,573)
Mayor and Council$(3,182)
$(13,568)
Planning
Arts Center$(13,783)
Engineering$(23,717)
Fire$(37,002)
Equipment Acquisitions$(181,403)
Pavement management$(348,471)
$(400,000)$(200,000)$-$200,000$400,000$600,000$800,000
$ Changes
Tax Base
50
PROPERTY TAXES
(continued)
Property taxes are derived from the property assessment, the local government levies and any
voter approved referenda. The estimated market value is determined by the Dakota County
Assessor based on an open market sale price. Property market values will vary from parcel to
parcel depending on characteristics, condition, location and other factors.
A property class is ascribed to each parcel of property based on the use of the property.
Generally, properties that are associated with income production have a higher classification than
other properties. The property classification system defines the tax capacity of each parcel as the
percentage of each parcel’s market value.
The largest property classes are residential, commercial and industrial with each comprising
73.8%, 16.8% and 4.7% of the 2011 tax base, respectively.
20102011
EstimatedEstimated
Tax Capacity% ofTax Capacity% ofIncrease/
Property ClassValueTotalValueTotal(Decrease)
Residential$ 48,443,765 74.3%$ 45,035,403 73.8%$ (3,408,362)
Commercial 10,918,055 16.7% 10,277,452 16.8% (640,603)
Industrial 3,050,397 4.7% 2,899,246 4.7% (151,151)
Apartment 1,127,962 1.7% 1,271,776 2.2% 143,814
Agricultural 704,450 1.1% 518,989 0.9% (185,461)
Utility 139,313 0.2% 135,241 0.2% (4,072)
Rural vacant0.0% 115,043 0.2% 115,043
Railroads 67,576 0.1% 42,832 0.1% (24,744)
Cabins 11,342 0.0% 10,355 0.0% (987)
Personal property 772,929 1.2% 745,485 1.1% (27,444)
Total$ 65,235,789 100.0%$ 61,051,822 100.0%$ (4,183,967)
According to the Dakota County Assessor’s Office, the assessed market value on median value
residential properties is $233,700 which is a decrease of 7.51% for taxes payable 2011. General
speaking, the majority of commercial and industrial properties will also have a decrease in
market value for the coming year.
The tax capacity value is adjusted for tax increment and the fiscal disparities contribution shown
as follows.
51
PROPERTY TAXES
(continued)
20102011
ActualEstimate
Tax Capacity Value 65,235,789 61,051,822 -6.4%
Tax Increment (1,999,576) (999,915)-50.0%
(5,623,626) (5,845,456)
Fiscal Disparaties Contribution3.9%
57,612,587 54,206,451
Net Tax Capacity-5.9%
Tax Capacity Rate
The tax capacity rate is a function of the tax levy and the total tax base. Even though the 2011
property tax levy remains unchanged, the tax capacity rate is projected to increase 4.6% (from
.36624 to .38293) due to the decrease in net tax capacity (property values).
20102011%
ActualEstimateChange
(0.0%)
Tax Levy 23,624,134 23,616,908
(2,524,151) (2,859,387)
Fiscal Disparities Distribution
13.3%
Net Tax Levy 21,099,983 20,757,521
(1.6%)
Net Tax Capacity 57,612,587 54,206,451
(5.9%)
Tax Capacity Rate 0.36624 0.38293
4.6%
Tax levies for bond issues approved by referendum after August 1, 1994, are based on market
value rather than tax capacity value. The City of Lakeville levy based on market value for Park
Bonds is shown as follows:
2011
Estimate
$ 5,653,143,817
Market Value
$ 424,744
Tax Levy for Park Bonds
0.0000751
Tax Rate based on Market Value
Tax Impact on Residential Properties
52
PROPERTY TAXES
(continued)
Assuming there are no changes in the tax rates for the other taxing jurisdictions and assuming an
average (7.51%) decrease in residential market values, the estimated City taxes on the “average”
residential property will decrease by approximately (3.6%) for the coming year.
Taxes on the Median-Value Residential Homestead
Estimated
200920102011
Market Value on Median Value Home$ 272,100$ 251,000$ 233,700
Multiplied by the property class rate 1.00%1.00%1.00%
Tax Capacity Value$ 2,721$ 2,510$ 2,337
Multiplied by the Tax Capacity Rate 0.33973 0.36620 0.38293
Taxes based on Tax Capacity Value$ 924$ 919$ 895
Market Value Homestead Credit (48) (55) (62)
Net taxes based on Tax Capacity Value$ 876$ 864$ 833
Taxes based on Market Value 20 18 18
Total taxes payable to City of Lakeville$ 896$ 882$ 851
Increase/(decrease)$ (39) $ (14) $ (32)
Percentage increase/(decrease)-4.2%-1.5%-3.6%
Tax Impact on Commercial and Industrial Properties
The assessors estimated taxable market values for residential market values declined on the
average home by approximately (7.51%) for taxes payable 2011. This follows a reduction of
(3.3%) and (7.75%) in market value for taxes payable in 2009 and 2010, respectively.
ASSESSORS ESTIMATED MARKET VALUE
Median Value Homesteaded Residential
$300,000
$280,000
Market Value
$260,000
$240,000
$220,000
$200,000
20042005200620072008200920102011
Year
53
PROPERTY TAXES
(continued)
The overwhelming majority of commercial and industrial properties are showing decreases in
market values for the coming year. Therefore, based on preliminary calculations, it is estimated
that City taxes will decrease by approximately $70 – 140 for a $1 million facility. The tax levy
impact on commercial and industrial properties will not be known until the fiscal disparities rates
are calculated later this year.
The decline in property taxes for the overwhelming majority of Lakeville property owners is
attributable to a stable City tax levy combined with the expiration of a Dakota County tax
increment district and a increase in the fiscal disparities distribution.
In the last couple of years, residential property values have been decreasing while commercial
and industrial values were stable or increasing. It appears that the assessed market values for
most properties are trending in parallel directions for the coming year.
90%
80%
81%
79%79%79%
79%79%
78%
70%
76%
74%
74%
74%
60%
50%
40%
30%
20%
21%21%
23%
20%
19%
17%
17%
16%16%
16%16%
10%
0%
20012002200320042005200620072008200920102011
ResidentialCommercial/Industrial
The tax structure for commercial and industrial properties is also significantly different than that
of homesteaded residential properties. Some of the primary differences are as follows:
Commercial and industrial properties are not entitled to the property tax relief which is
granted to residential properties through the Market Value Homestead Credit.
Commercial and industrial properties pay a State property tax. This tax now represents the
largest share of commercial and industrial taxes.
Commercial and industrial properties are subject to the fiscal disparities pool and tax
distribution.
54
PROPERTY TAXES
(continued)
Commercial and industrial properties are subject to a higher property class rates than that of
residential property as shown in the following table.
Local Local
Tax Tax
Payable Payable
Property Type 2009 2010
Residential Homestead
Up to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
Residential Non-homestead
Single Unit
Up to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
1-3 unit and undeveloped land 1.25% 1.25%
Market Rate Apartments
Regular 1.25% 1.25%
Commercial/Industrial/Public
Utility
Up to $150,000 1.50% 1.50%
Over $150,000 2.00% 2.00%
Electric Generation
Machinery2.00% 2.00%
Seasonal Recreational Residential:
Up to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
Agricultural Land & Buildings
Homestead
Up to $500,000 1.00% 1.00%
Over $500,000 1.00% 1.00%
Remainder of Farm
Up to $790,000 0.55% 0.55%
Over $790,000 1.00% 1.00%
Non-homestead 1.00% 1.00%
As such, the taxes paid by commercial and industrial properties are more than those paid by
residential properties as is shown by the following chart.
55
PROPERTY TAXES
(continued)
PERCENT OF TOTAL PROPERTY TAXES
RESIDENTIAL COMPARED TO COMMERCIAL
COMMERCIAL
RESIDENTIAL
50%
50%
40%
40%
40%
32%
29%
28%
30%
30%
24%
20%
20%
16%
14%
11%
10%
10%
4%
2%
0%0%
0%
0%
Fiscal disparities
School district
CountyState Tax
CityOther
Fiscal disparities
School district
CountyState Tax
CityOther
The State of Minnesota has sole responsibility for the tax structure of the various property
classes.
Truth in Taxation
Minnesota Statutes require cities to certify the proposed property tax levy to the County
Treasurer/Auditor and adopt a proposed budget on or before September 15. The County
Treasurer/Auditor will mail the parcel specific Truth in Taxation notices in mid-November.
These notices inform property owners of the time and place of the budget hearings and the
impact of the proposed property tax levy.
Lakeville’s Truth in Taxation meeting will be conducted on Monday December 6. The Council
has the ability to adopt a final tax levy in December that is equal to or less than the preliminary
tax levy approved in September. It may not, however, adopt a final tax levy that is greater than
the preliminary tax levy.
56
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.
CITY OF LAKEVILLE, MINNESOTA
General Fund
Fund Balance Discussion
The Fund Balance Policy states “The City’s unreserved 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.
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; helps minimize
the impact of state funding changes; 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. The ratio of fund balance to expenditures is 40.1% and 40.0 for 2011 and
2012, respectively.
20112012
ProposedEstimated
BudgetBudget
Revenues and other financing sources$ 20,722,560$ 21,523,546
Expenditures 20,945,949 21,360,944
Net increase/(decrease) (223,389) 162,602
Fund Balance, January 1 8,615,197 8,391,808
Fund Balance, December 31$ 8,391,808$ 8,554,410
Ratio: Fund balance to expenditures40.1%40.0%
The proposed budget is premised on the assumption the City Council will approve a transfer in
2010 from the General Fund to the following funds.
Fund Total
Trail Improvement Fund 1,400,000
Equipment Fund 1,100,000
Building Fund 52,136
G.O. Improvement Bonds 107,490
Pavement Management Fund
Fire Station #3 parking lot 32,800
Holyoke / 210th Street 29,700
Sealcoating park parking lots 77,874
Total$ 2,800,000
57
CITY OF LAKEVILLE, MINNESOTA
General Fund
Fund Balance Discussion
(continued)
The purpose of the transfer is to accomplish the following objectives:
Minimize 2011 and future tax levies
Debt reduction
Funding for long-term maintenance of city infrastructure and assets.
58
CITY OF LAKEVILLE, MINNESOTA
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 15,564,347$ 16,117,882$ 16,193,607$ 16,150,897$ 16,597,723
Licenses and permits 1,062,367 902,341 1,057,861 1,220,561 1,449,898
Intergovernmental 946,902 1,070,554 1,017,358 975,458 975,458
Charges for services 2,013,095 1,298,419 1,267,582 1,221,270 1,275,508
Court fines 297,413 273,055 288,260 294,026 299,906
Investment income 161,318 104,096 83,450 125,175 166,900
337,351 96,769 113,617 79,521 80,804
Miscellaneous
20,382,793 19,863,116 20,021,735 20,066,908 20,846,197
Total revenues
Expenditures
Mayor and Council 100,581 110,726 109,377 114,245 110,419
Committees and Commissions 77,660 79,254 76,783 78,156 79,557
City administration 292,084 313,502 313,502 321,899 323,863
City Clerk 109,092 167,664 164,832 114,466 176,776
Legal counsel 80,770 65,132 65,132 65,132 65,132
Planning 514,125 431,982 417,836 352,530 350,800
Community and econ. development 271,722 274,817 271,195 270,988 271,135
Inspections 928,746 891,468 885,370 931,406 904,155
General government facilities 480,840 534,008 491,063 510,537 508,328
Finance 547,696 555,084 553,916 568,579 568,905
Information systems 480,479 454,341 475,084 466,481 477,118
Human resources 272,718 293,923 303,113 305,286 315,453
Insurance 280,031 278,698 278,698 289,532 298,301
Police 7,640,899 8,362,945 8,263,734 8,512,347 8,807,235
Fire 1,176,340 1,371,591 1,339,418 1,332,037 1,290,215
Engineering 703,528 720,216 716,819 747,714 749,441
Streets 2,843,604 2,357,056 2,324,305 2,443,149 2,521,594
Parks 1,887,047 2,152,234 2,106,547 2,174,677 2,192,136
Recreation 564,099 600,075 602,677 598,274 614,680
Arts Center 398,518 430,182 414,635 439,445 426,632
- 309,069 276,884 309,069 309,069
Other
19,650,579 20,753,967 20,450,920 20,945,949 21,360,944
Total expenditures
Other financing sources (uses)
Transfer from other funds 492,645 668,238 637,657 655,652 677,349
(1,263,647) - (2,800,000) - -
Transfer to other funds
(771,002) 668,238 (2,162,343) 655,652 677,349
Total other financing sources (uses)
Net change in fund balance (38,788) (222,613) (2,591,528) (223,389) 162,602
11,245,513 9,714,615 11,206,725 8,615,197 8,391,808
Fund balance, January 1
$ 11,206,725$ 9,492,002$ 8,615,197$ 8,391,808$ 8,554,410
Fund balance, December 31
Net change in 2011 and 2012 fund balance percentage(2.6%)1.9%
Ratio: Fund balance to expenditures57.0%45.7%42.1%40.1%40.0%
59
General Fund
Schedule of Revenues and Other Financing Sources (Uses)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
General property taxes
Ad valorem taxes - current$ 13,451,844$ 14,133,759$ 14,032,905$ 13,865,306$ 14,308,510
Ad valorem taxes - delinquent 302,027 155,909 306,265 178,118 183,577
Market value homestead credit 1,961
Fiscal disparities 1,713,240 1,760,094 1,760,094 2,019,580 2,017,743
Penalties and interest 14,711 7,550 14,000 7,550 7,550
Mobile home tax 45,171 41,500 43,937 43,937 43,937
Mobile home tax credit 18,233 19,070 21,406 21,406 21,406
17,160 - 15,000 15,000 15,000
Gravel tax
15,564,347 16,117,882 16,193,607 16,150,897 16,597,723
Total general property taxes
(continued)
60
General Fund
Schedule of Revenues and Other Financing Sources (Uses)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Licenses and permits
Licenses
Cigarette$ (1,200) $ 16,800$ 19,200$ 600$ 21,600
Trash removal 3,800 3,150 3,750 3,750 3,750
Dog 16,557 20,000 13,652 13,652 13,652
Signs 5,400 3,550 4,882 4,882 4,882
On-sale liquor 110,236 107,000 114,600 120,100 125,600
Sunday liquor 6,528 3,800 4,000 4,200 4,400
Club license 500 500 500 500 500
Non-intoxicating liquor on (600) 1,200 1,500 1,500 1,800
Non-intoxicating liquor off 825 900 825 825 900
Wine 2,500 1,000 2,000 2,000 2,000
Tree removal 900 700 700 675 650
Arcade 2,820 2,490 2,895 2,940 2,985
Fireworks 500 900 500 500 500
Massage 1,875 1,500 1,900 1,900 1,900
600 - 500 500 500
Miscellaneous
151,241 163,490 171,404 158,524 185,619
Total licenses
Permits
Plan review fees 184,177 160,862 187,173 227,986 280,937
Building 460,907 384,840 498,952 601,688 724,316
Plumbing 64,547 55,671 42,211 47,331 51,842
Water/sewer 14,442 9,174 14,482 18,757 19,822
Mechanical 69,212 43,257 58,068 67,266 76,365
Grading/filling 450 250 250 250 250
Excavating/gravel 775 750 750 750
Driveway 650 600 600 600 600
Zoning 3,270 3,482 3,600 3,800
Right-of-way 21,230 18,000 18,000 20,000 22,000
Fire burning 375 550 595 770 875
Electrical 90,010 65,347 61,594 72,739 82,422
1,081 300 300 300 300
Miscellaneous
911,126 738,851 886,457 1,062,037 1,264,279
Total permits
1,062,367 902,341 1,057,861 1,220,561 1,449,898
Total licenses and permits
(continued)
61
General Fund
Schedule of Revenues and Other Financing Sources (Uses)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Intergovernmental
State aid police$ 351,623$ 335,887$ 351,624$ 351,624$ 351,624
State aid fire relief 192,073 190,209 190,209 190,209 190,209
State aid streets 234,139 374,962 374,962 374,962 374,962
State aid pensions 21,303 21,303 21,303 21,303 21,303
State POST Board grant 21,010 19,864 21,010 21,010 21,010
State Drug Task Force grant 28,256 12,000 14,050 14,050 14,050
State fire training grant 2,800
State OSHA safety grant 2,863
State snowmobile trail maint. grant 2,718 200 200 200 200
State, Fed. Cnty., police grants 24,372 2,100 2,100 2,100 2,100
Fed. CDBG community development
16,938 5,000
Federal energy grant
1,600
Dakota Communication Center rebate
65,529
County Police domestic prep. grant
1,507
47,300 41,900 41,900 - -
County recycling grant
946,902 1,070,554 1,017,358 975,458 975,458
Total intergovernmental
(continued)
62
General Fund
Schedule of Revenues and Other Financing Sources (Uses)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Charges for services
General government
Rezoning fees$ 1,000$ 750$ 750$ 750$ 750
Platting fees 4,531 1,850 3,340 4,500 9,000
Variance fees 600 750 400 600 1,200
PUD application fees 1,000 500 500 500
CUP fees 2,608 2,400 2,000 2,400 2,400
Home occupation fees 830 450 500 500 500
Planner fees 25,340 32,001 14,875 24,000 32,500
Inspection department fees 9,392 7,679 11,796 13,258 15,230
General government service charge 12,468 15,057 5,773 3,448 3,448
Tree escrow fund administration 545 8,000 700 1,200 3,500
Lodging tax fee 6,349 7,474 6,250 6,500 6,750
Fiscal Agent - DCC 37,042 59,400 59,400 60,588 61,800
Fiscal Agent - Arenas 16,000 16,000 16,000 32,000 32,000
Investment management fees 26,597 26,597 26,597 27,395 28,217
Sale of maps/copies 261 400 225 200 150
Sale of printed materials 9 50
(48) 200 150 150 150
Finance charges
144,524 179,058 149,256 177,989 198,095
Total general government
Public safety
Police department charges 81,971 70,122 51,506 52,273 52,491
SRO - ISD 194 contributions 148,854 150,804 149,500 153,985 157,835
Animal pickup 3,876 3,910 3,876 3,876 3,876
Animal storage 7,239 8,320 7,239 7,239 7,239
Animal rabies 3,957 2,540 3,957 3,957 3,957
Restitution 3,023 3,000 3,000 3,000 3,000
Forfeiture - sale of assets 30,065 5,000 14,400 14,400 14,400
Fire contracts 30,730 32,265 32,270 33,240 34,240
Fire department charges 3,286 1,750 1,750 1,750 1,750
11,501 11,600 11,885 12,123 12,365
ALF Ambulance - admin. charge
324,502 289,311 279,383 285,843 291,153
Total public safety
(continued)
63
General Fund
Schedule of Revenues and Other Financing Sources (Uses)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Charges for services (continued)
Public works
Engineering platting - preliminary$ 7,725$ 1,500$ 1,500$ 1,500$ 3,000
Engineering platting - final 3,140 1,200 1,200 1,200 2,400
Engineering plan review 6,304 5,000 5,000 5,000 7,500
Engineering developer insp. fees 10,280 500 981 1,000 1,500
Engineering developer cont. admin. 18,979 6,000 9,308 10,000 15,000
Engineering Imp. Proj. design variable 125,064 81,900 81,900 50,560 57,520
Engineering Imp. Proj. const. inspect. 218,422 102,200 102,200 56,800 64,710
Engineering G.I.S. fees 3,525 1,200 3,500 4,200 4,700
Special assessment admin. charge 82,362 79,252 79,252 60,162 59,782
Special assessment searches 300 220 300 300 300
Document/map sales 520 910 307 200 125
Bid plan/spec. deposits 1,257 1,500 1,100 500 500
Street department charges 2,673 4,530 11,097 12,000 12,500
Street lights 558,572
Credit River - Judicial Road maint. 2,746 6,635 1,600 2,746 2,746
Developer street signs installation 1,709 7,000 1,400 2,400 3,000
1,043,578 299,547 300,645 208,568 235,283
Total public works
Parks, recreation and arts center
Brochure advertising 8,210 5,000 7,050 7,050 7,050
Youth activities 101,776 108,745 113,445 112,582 112,582
Youth sport surcharge 17,938 36,700 36,700 36,700 36,700
Youth special events 13,176 13,391 13,391 13,391 13,391
Youth special events donations 3,200 1,400 1,400 1,400 1,400
Adult activities 72,690 70,450 70,450 70,450 70,450
Puppet wagon donations 3,000 3,870 3,870 3,870 3,870
Safety Camp 2,694 3,000 3,000 3,000 3,000
Safety Camp donations 1,100 1,100 1,100 1,100 1,100
Sr. Center newsletter cost reimb.
Senior Center donations 470 470 470 470
Senior Center excursions 4,562 20,000 20,000 20,000 20,000
Ritter Farm Park ELC 9,976 6,682 6,682 6,682 6,682
Excursions 13,956 7,920 7,920 7,920 7,920
15,480 12,582 12,582 12,582 12,582
Tennis lessons
Total recreation programs 267,758 291,310 298,060 297,197 297,197
Park rental/maint./tournament fees 32,469 29,903 29,903 29,903 29,903
Tree sales (net) 4,926 4,500 4,963 5,000 5,000
Senior Center membership surcharge 4,710 4,010 4,010 4,010 4,010
440 440 440 440 440
Senior Center rentals
310,303 330,163 337,376 336,550 336,550
Total parks and recreation
(continued)
64
General Fund
Schedule of Revenues and Other Financing Sources (Uses)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Charges for services (continued)
Parks, recreation and arts center (continued)
Arts center program fees$ 67,783$ 73,500$ 67,176$ 68,250$ 69,250
Arts center brochure ad revenue 585 585
Arts center on-sale 97 2,801 4,470 2,577
121,723 126,840 130,360 139,600 142,600
Arts center rental/event admissions
190,188 200,340 200,922 212,320 214,427
Total arts center
500,491 530,503 538,298 548,870 550,977
Total parks, recreation and arts center
2,013,095 1,298,419 1,267,582 1,221,270 1,275,508
Total charges for services
297,413 273,055 288,260 294,026 299,906
Court fines
161,318 104,096 83,450 125,175 166,900
Investment income
Miscellaneous
Disposal of assets 221,604 2,939 20,656 9,445 9,445
Park rental farming 400 400 400 400 400
Donations 26,696 48,411 48,738 25,095 25,263
Antenna site leases 88,346 44,990 43,494 44,581 45,696
305 29 329 - -
Other
337,351 96,769 113,617 79,521 80,804
Total miscellaneous
Other financing sources (uses) - Transfers from (to)
Special Revenue:
Communications Fund 47,267 48,177 42,069 42,551 43,413
Environmental Resources Fund 108,566 113,597 111,316 151,991 158,558
Debt Service:
GO Improvement Bonds (107,490)
Capital Projects:
Storm Sewer Fund 36,230 40,827 37,153
Pavement Management Fund (140,374)
Trail Maintenance Fund (1,400,000)
Equipment Fund (1,263,647) (1,100,000)
Building Fund (52,136)
Internal Service - Muni. Res.Fund 40,663 43,140 43,140 44,435 45,767
Enterprise:
Liquor Fund 139,094 142,036 143,640 144,950 151,759
120,825 280,461 260,339 271,725 277,852
Utility Fund
(771,002) 668,238 (2,162,343) 655,652 677,349
Total other financing (net)
65
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 that are elected at-large; the Mayor is elected to a
two year term 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 providing day-
to-day City operations.
Services:
Represents the People of Lakeville. not limited to levying taxes, adopting a
budget, disbursement of public monies,
Exercise legislative authority through the
and issuance of debt.
enactment of ordinances, policies, and
resolutions. Formulates policies that will help the
City prepare for the future and adjust to
Conducting the City’s intergovernmental
social and economic trends which
affairs. The council may make
require long-range planning regarding
agreements for the joint exercise of
City facilities, needs and services.
powers through agreements with other
units of government, appoint people to Directing the enforcement of City
serve on intergovernmental bodies, ordinances
conduct city business with state and
Appoints members of the advisory
federal agencies, and participate in
boards.
intergovernmental programs and the
Provide leadership by promoting ideas
work of municipal associations such as
and programs which serve the
the League of Minnesota Cites.
community.
The Council has the full authority over
the City’s financial affairs, including but
Activity Measures:
Lakeville Community Survey Results 2001 2005 2007 2010
Residents who indicated that the quality of life
92% 95% 97% 98%
in Lakeville was excellent or good?
66
MAYOR AND COUNCIL
(continued)
Goals and Objectives:
Strategic Plan.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 45,263$ 50,224$ 49,290$ 49,327$ 49,334
Commodities 50 50 50 50
Other charges and services
55,318 60,452 60,037 64,868 61,035
$ 100,581$ 110,726$ 109,377$ 114,245$ 110,419
Total
Revenues
$ 100,581$ 110,726$ 109,377$ 114,245$ 110,419
Taxes and other public funds
Budget Factors:
Personnel services.
There is no proposed changes to the Mayor and Council salary structure for 2011 and 2012.
Commodities
There are no proposed changes in commodities for 2011 and 2012.
Other charges and services
The other charges and services budget will increase $4,416 in 2011 and decrease $3,833 in
2012. The City of Lakeville maintains membership in those organizations which provide
administrative and legislative guidance including the League of Minnesota Cities ($26,631),
the Association of Metropolitan Municipalities ($12,599), Municipal Legislative Commission
($10,000) and the I-35 Alliance ($3,000). Budget also provides appropriations for strategic
planning and miscellaneous expenses.
67
COMMITTEES AND COMMISSIONS
Program Description:
The City has a number of committees which provide recommendations to the City Council
relating primarily to policy issues. Committees include Planning, Economic Development,
Lakeville Area Arts, Parks Recreation and Natural Resources, Yellow Ribbon, and the Pan-
O-Prog community celebration.
Services:
Advise City Council relative to policy issues.
Staff support of the Pan-O-Prog community celebration.
Community Survey:
Quality of Service is
Residents who
service is considered
Service/Program support current
excellent or essential or very
funding level
good important
Residential Responses:
Pan-o-Prog community celebration 96% 72% 82%
Business Responses:
Pan-o-Prog community celebration 81% 55% 72%
2010 Goals and Objectives:
Recognition of contributions of committee members.
The annual Pan-O-Prog Fourth of July fireworks display continues to be financed with
donations from the community businesses. Support functions such as traffic control are
financed by the City of Lakeville.
2011 - 2012 Goals and Objectives:
Recognition of contributions of committee members.
The annual Pan-O-Prog Fourth of July fireworks display continues to be financed with
donations from the community businesses. Support functions such as traffic control are
financed by the City of Lakeville.
68
COMMITTEES AND COMMISSIONS
(continued)
Budget Summary:
20092010201020112012
FunctionActualBudgetEstimateEstimateEstimate
Planning Commission 4,779 5,944 5,404 5,409 5,414
Economic Development 660 1,584 1,584 1,587 1,592
Parks, Recreation and NR. 1,435 3,871 3,333 3,336 3,339
Lakeville Area Arts Center 582 802 816 818 820
Yellow Ribbon Committee 874 250 250 250 250
Pan-O-Prog 69,330 66,803 65,396 66,756 68,142
Total$ 77,660$ 79,254$ 76,783$ 78,156$ 79,557
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 42,279$ 40,441$ 38,912$ 40,021$ 41,168
Commodities 855 908 907 925 925
Other charges and services 34,526 37,905 36,964 37,210 37,464
$ 77,660$ 79,254$ 76,783$ 78,156$ 79,557
Total
Revenues and other financing
sources
Miscellaneous$ 20,850$ 30,000$ 25,182$ 25,095$ 25,263
Other financing sources 1,124 1,200 1,998 500 500
Taxes and other public funds 55,686 48,054 49,603 52,561 53,794
$ 77,660$ 79,254$ 76,783$ 78,156$ 79,557
Total
Budget Factors:
Personnel services.
The personnel services budget will decrease $420 in 2011 and increase $1,147 in 2012. The
Pan-O-Prog budget only includes over-time cost; it does not include work performed during
regular scheduled work hours.
Commodities
The commodities budget will increase by $17 in 2011 with no anticipated changes in 2012
Other charges and services
Other charges and services will decrease $695 in 2011 and increase $254 in 2012 primarily as
a result of Pan-O-Prog activities.
Miscellaneous
th
The pyrotechnics display ($20,000) during the Pan-O-Prog 4 of July celebration is financed
exclusively from donations.
69
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 office 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 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 other official bodies as directed by the
information and recommendations to the Council.
City Council.
Handles personnel matters for the City in
Oversee and support City departments as accordance with policy established by
they provide the best possible services to the City Council. Negotiates or
the community at the lowest possible delegates the negotiation of terms and
cost. conditions of employee labor contracts
for presentation to the City Council.
Provide comprehensive vision and
Conducts annual evaluations and review
leadership for the City organization so
of work performance for all department
that desires and needs of the community
heads.
and City Council goals are achieved.
Recommends from time to time the
Prepare and provide to the City Council
adoption of such measures as deemed
a fiscally responsible budget to finance
necessary for the health, safety and
City operations in support of community
welfare of the community or for the
desires and city Council goals.
improvement of the administration.
Attends and participates in discussions at
all meetings of the City Council and
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Request Estimate
City Administrator 1.0 1.0 1.0 1.0 1.0
Assistant to City Administrator 0.8 0.5 0.5 0.5 0.5
Executive Administrative Assistant/
Deputy Clerk 1.0 1.0 1.0 1.0 1.0
Total 2.8 2.5 2.5 2.5 2.5
70
CITY ADMINISTRATION
(continued)
2010 Goals and Objectives:
Maintain and communicate the core level of services expected by Lakeville residents.
(Strategic Plan A – 1)
Continue to develop collaborations/ partnerships with private interests and other governments
(Strategic Plan A – 3)
on key projects.
Prepare Lakeville for transit services. Complete a full assessment of what Lakeville residents
(Strategic Plan H – 1)
need and the ridership potential of transit alternatives.
2011 – 2012 Goals and Objectives:
Maintain and communicate the core level of services expected by Lakeville residents.
(Strategic Plan A – 1)
Continue to develop collaborations/ partnerships with private interests and other governments
(Strategic Plan A – 3)
on key projects.
Prepare Lakeville for transit services. Complete a full assessment of what Lakeville resident
(Strategic Plan H – 1)
need and the ridership potential of transit alternatives.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 283,732$ 297,465$ 303,396$ 306,537$ 309,325
Commodities 543 850 543 900 910
Other charges and services 7,809 15,187 9,563 11,492 11,813
- - - 2,970 1,815
Capital outlay
$ 292,084$ 313,502$ 313,502$ 321,899$ 323,863
Total
Revenues and other financing
sources
Other financing sources$ 20,644$ 49,589$ 41,224$ 42,027$ 41,932
271,440 263,913 272,278 279,872 281,931
Taxes and other public funds
$ 292,084$ 313,502$ 313,502$ 321,899$ 323,863
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $9,072 and $2,788 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
There is an estimated $50 and $10 increase in 2011 and 2012 budgets for supplies for the
coming year.
Other charges and services
71
CITY ADMINISTRATION
(continued)
Other charges and services budget will decrease $3,695 for 2011 and increase $321 in 2012.
The 2011 decrease is the result in reductions in cellular phone and use of personal auto. City
Administrator did not attend conferences in 2009 and 2010; however, the budget does include
appropriations for State conferences in 2011 and 2012
Capital Outlay
Capital outlay is attributable to Microsoft Office upgrades in 2011 and computer replacements
in 2011 and 2012.
72
CITY CLERK
Program Description:
The City Clerk is a statutory office that is responsible for City records management, election
administration, and legal notification to the public, the issuance of licenses and permits and the
preparation and retention of 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. Administration of records management
system in accordance with Minnesota
Attend all Council meetings and record
Data Retention Act.
meeting minutes.
Elections administration.
Administration of ordinance
codification. Issuance and renewal of licenses.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
City Clerk 1.0 1.0 1.0 1.0 1.0
Total 1.0 1.0 1.0 1.0 1.0
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Meeting Agenda Packets 26 27 27 27 27
Meeting Hours 30 30 30 30 30
Ordinances Processed 15 15 15 15 15
Resolutions Processed 190 190 190 190 190
Liquor Licenses 34 34 34 34 34
Massage Therapy Licenses 72 72 72 72 72
Tree Service Licenses 27 27 27 27 27
Registered Voters N/A 32,000 32,000 N/A 33,000
Absentee Ballots Processed N/A 2,000 2,000 N/A 2,000
Election Judges Trained N/A 150 150 N/A 200
N/A = not applicable
73
CITY CLERK
(continued)
2011 – 2012 Goals and Objectives
Administration of organization wide expansion of records stored electronically on Laser
Fiche.
Redistricting of precinct boundaries
Consider new technology innovations in election equipment.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 95,770$ 105,056$ 102,694$ 99,661$ 105,458
Commodities 88 1,700 1,550 300 1,700
Other charges and services 13,234 60,458 60,218 13,650 67,803
- 450 370 855 1,815
Capital outlay
$ 109,092$ 167,664$ 164,832$ 114,466$ 176,776
Total
Revenues
$ 109,092$ 167,664$ 164,832$ 114,466$ 176,776
Taxes and other public funds
Budget Factors:
Personnel services.
There are no elections in 2011 and therefore personnel costs overall will decrease $5,395 in
2011 but will increase $5,797 as a result of the Presidential election in 2012. Personnel costs
also include anticipated increases in health insurance and a State mandated .25% increase in
PERA. Wage adjustments, if any, are yet to be determined.
Commodities
Commodities will decrease $1,400 in 2011 due to absence of elections and increase $1,400 in
2012 because of Presidential elections.
Other charges and services
Election judges are considered contract employees. As such there is $46,808 decrease in 2011
and a $54,153 increase in 2012 primarily related to election activities.
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades in 2011 and computer replacements
in 2012
74
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 Represents the City, its boards and
City Council and Planning Commission. officers, in civil claims and litigation.
Drafts and revises local ordinances and Drafts and reviews development
resolutions. agreements.
Researches and writes legal opinions and Negotiates and drafts City contracts,
memoranda for elected officials and City leases and indemnification agreements.
departments.
Administration of all real estate activity.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
$ 80,770$ 65,132$ 65,132$ 65,132$ 65,132
Other charges and services
Revenues
$ 80,770$ 65,132$ 65,132$ 65,132$ 65,132
Taxes and other public funds
Budget Factors:
Other charges and services
The $65,132 budget for 2011 and 2012 is consistent the 2010 budget and historical trends.
75
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.
In 2010, the Planning Department was also responsible for developing programs that promote
and expand the community’s environmental recycling awareness. Beginning in 2011 this
responsibility will be performed by the Environmental Resources Department.
Services:
Administer comprehensive planning and Coordinate development review with
development regulations and policies as other City departments and outside
adopted by the City of Lakeville and the agencies.
laws of the State of Minnesota.
Initiate dialogue in response to emerging
Administer development review and community issues.
process permits consistent with land use,
Respond to public inquires accurately
subdivision and environmental
and in a timely manner.
regulations.
Process applications in a timely,
thorough and accurate manner.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Planning Director 1.0 1.0 1.0 1.0 1.0
Associate Planners 2.3 1.5 1.5 1.5 1.5
Administrative Assistant 0.5 0.5 0.5 0.5 0.5
Total 3.8 3.0 3.0 3.0 3.0
Activity Measures:
In 2009 the Planning Department completed a continuous flow of work including final approval
of the 2008 Comprehensive Land Use Plan by the Metropolitan Council, substantial review of
the Zoning and Subdivision ordinance update, and review and processing of several residential,
commercial, industrial, office, and institutional, development applications.
76
PLANNING
(continued)
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Preliminary Plats 7 8 8 10 12
Final Plats 8 10 10 12 15
Administrative Permits 27 30 30 35 40
Sketch Plans 1 8 8 10 12
Conditional Use Permits 8 10 10 10 12
Administrative Subdivision 6 6 6 8 8
Temporary Sign Permits 19 20 20 22 25
Permanent Sign Permits 49 50 50 55 60
Rezoning 3 3 3 3 3
Variances 1 1 1 1 1
Special Home Occ. Permits 0 3 3 0 0
Illegal Signs Removed 578 650 950 580 900
2010 Goals and Objectives:
Planning
(Strategic Plan G – 2)
Facilitate development of new housing types without cost to the City.
(Strategic Plan G – 3)
Continue orderly development of Lakeville.
The Planning Department will continue to provide prompt and responsive service to
contractors, developers, property owners, residents, and the general public while working
toward the goal of improving the quality of life of residents and implementing the
community’s goals and objectives outlined in the City’s Comprehensive Land Use Plan and
as directed by the Planning Commission and City Council.
Provide quality and efficient response to the needs of the public, City Council and Planning
Commission and continue to work with developers to insure quality development and
positive outcomes. Specific projects that the Planning Department will manage include
completing the updates to the Zoning and Subdivision Ordinances, the Argonne Farms East
Special Study, the on-going Southwest Industrial Area Enforcement Study, a study to review
small lot subdivision designs, and continued coordination with GIS staff to increase the
technological capabilities of the department’s databases.
Continue to work with the Planning Commission to improve their efficiency and
effectiveness.
The Planning Department will continue to provide efficient customer service and completion
of reports and projects while recognizing the current financial status of the City and the
national economy.
77
PLANNING
(continued)
Environmental Recycling
Promote annual Drop-Off Day and Road Side Cleanup programs.
Produce more recycling containers in City parks.
Improve City’s recycling web page.
Continue to increase and promote recycling activities throughout the City.
2011 – 2012 Goals and Objectives:
(Strategic Plan G – 2)
Facilitate development of new housing types without cost to the City.
(Strategic Plan G – 3)
Continue orderly development of Lakeville
Implement the community’s goals and objectives outlined in the City’s Comprehensive Land
Use Plan and as directed by the Planning Commission and City Council.
Completing a follow-up to the M.U.S.A Expansion Area A study.
Complete the Southwest Industrial Area Enforcement Study.
Monitor the goals and policies of the 2008 Comprehensive Plan as well as the 2010
amendments to the Zoning and Subdivision ordinances for any revisions or corrections that
may arise with the implementation of these documents.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 417,787$ 354,020$ 340,765$ 322,933$ 326,516
Commodities 36,855 27,571 26,709 5,325 5,340
Other charges and services 59,483 50,391 50,362 17,129 17,129
Capital outlay - - - 7,143 1,815
$ 514,125$ 431,982$ 417,836$ 352,530$ 350,800
Total
Revenues and other financing
sources
Intergovernmental$ 47,300$ 41,900$ 41,900$ -$ -
Charges for services 36,179 38,651 22,590 33,450 47,000
Taxes and other public funds
430,646 351,431 353,346 319,080 303,800
$ 514,125$ 431,982$ 417,836$ 352,530$ 350,800
Total
78
PLANNING
(continued)
Budget Factors:
Personnel services.
The personnel services budget will decrease $31,087 and increase $3,583 in 2011 and 2012
respectively. The decrease in 2011 is due primarily to a reduction in unemployment
compensation, administrative reorganization, and the transfer of accounting for environmental
recycling activities from the Planning Department to the Environmental Resources Special
Revenue Fund. The 2011 and 2012 personnel costs include the State mandated .25% increase
in PERA and anticipated increases in health insurance. Wage adjustments, if any, are yet to be
determined.
Commodities
Commodities will decrease $22,246 and increase $15 in 2011 and 2012 respectively. The
decrease in 2011 is primarily due to a transfer of accounting for environmental recycling
activities from the Planning department to Environmental Resources Special Revenue Fund.
Other charges and services
The Comprehensive Plan and Zoning Ordinance updates were completed in 2009 and 2010
respectively. As such Professional services and printing costs will account for $19,021 of the
decrease in other charges and services in 2011. The remaining decrease is due to a transfer of
accounting for environmental recycling activities from the Planning Department to the
Environmental Resources Special Revenue Fund. Other charges and services budget will
increase $350 in 2012.
Waste disposal decreased $7,511 in 2010 due to eliminating the acceptance of electronics
during the Household Hazardous Waster Drop Off Day event. Manufacturers have been
mandated to accept a percentage of electronics for recycling. The City discontinued the
practice of accepting electronics during the Drop-off Day event and instead directed citizens to
the businesses that provide recycling services.
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades and two computer replacements in
2011; two additional computers will be replaced in 2012.
79
COMMUNITY AND ECONOMIC DEVELOPMENT
Program Description:
The Community and Economic Development Department is responsible for services that
promote business and development that support 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 Serve as a liaison to the business
CDA to administer HUD funded community.
Community Development Block Grant
Staff and coordinate the activities of the
program and other housing and
Economic Development Commission
redevelopment programs.
(EDC).
Coordinate special projects, studies, and
Provide development updates, statistics,
development projects related to
and demographics to for the City
economic development.
Council, Economic Development
Coordinate with State and local agencies Commission and City departments.
to provide assistance to new and
Coordinate Manufacturers Week
expanding businesses.
activities.
Provide high-level City development
Coordinate public information activities
strategies.
regarding local economic development
Respond to inquiries and assist issues.
developers and businesses to navigate
through the City’s development process.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Community and Econ. Dev. Director 1.0 1.0 1.0 1.0 1.0
Economic Development Specialist 1.0 1.0 1.0 1.0 1.0
Administrative Assistant 0.5 0.5 0.5 0.5 0.5
Total 2.5 2.5 2.5 2.5 2.5
80
COMMUNITY AND ECONOMIC DEVELOPMENT
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Commercial/Industrial Development
Permit Valuation (in millions) $ 7.3 $ 5.0 $ 5.0 $ 10.0 $ 10.0
Number of Permits 68 50 50 75 75
Community Survey:
Quality of Service is
Residents who
service is considered
Service/Program support current
excellent or essential or very
funding level
good important
Residential Responses:
Economic Development & Planning 76% 88% 86%
Business Responses
:
Economic Development & Planning
2010 Goals and Objectives:
Monitor trends and opportunities for improved increased broadband services in Lakeville.
Participate in County-wide initiatives to improve broadband services.
Continue to work with property owners in the Downtown to help facilitate redevelopment
opportunities similar to the new Ace Hardware store completed in 2009.
Pursue grant opportunities for public improvements Downtown including way-finding and
improvements to Pioneer Plaza.
Begin implementation of the 2011-13 Strategic Plan for Economic Development.
Continued participation in “Positively Minnesota” marketing efforts coordinated by the
Minnesota Department of Employment and Economic Development.
Increased City marketing and advertising efforts by purchasing ad space on several statewide
web sites and publications.
Continuously update Community & Economic Development website.
2011 - 2012 Goals and Objectives:
(Strategic Plan A
Attract business development to increase commercial/industrial tax base.
- 2)
(Strategic Plan C – 1)
Complete feasibility planning for fiber to all homes and businesses.
(Strategic Plan D
Continue to attract private investment to fund downtown redevelopment.
– 1)
81
COMMUNITY AND ECONOMIC DEVELOPMENT
(continued)
Enhance public amenities in downtown. Implement a publicly managed parking system.
(Strategic Plan D - 2)
(Strategic Plan D - 3)
Full service restaurant in Central Business District.
Plan and prepare for office park development in Lakeville. Attract interest from private
(Strategic Plan I – 1)
developers for office park development.
Location and timetable for office park agreed upon by the Council and the developer.
(Strategic Plan I – 2)
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 240,918$ 249,979$ 248,857$ 251,632$ 254,146
Commodities 135 350 350 350 350
Other charges and services 30,669 24,488 21,988 16,463 16,639
- - - 2,543 -
Capital outlay
$ 271,722$ 274,817$ 271,195$ 270,988$ 271,135
Total
Revenues
Intergovernmental$ 16,938$ 5,000$ -$ -$ -
Miscellaneous 4,213 5,000 5,000
250,571 264,817 266,195 270,988 271,135
Taxes and other public funds
$ 271,722$ 274,817$ 271,195$ 270,988$ 271,135
Total
Budget Factors:
.
Personnel services
The personnel services budget will increase $1,653 and $2,514 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
Commodities are anticipated to remain unchanged at $350 per year for both 2011 and 2012.
Other charges and services
The Economic Development Strategic Plan for 2011-2013 will be completed in 2010.
Professional services for an Economic Development Commission Strategic Planning
Consultant will therefore decrease by $5,000 in 2011. Appropriations have been provided in
2011 and 2012 for printing marketing materials ($2,000), advertising in professional
publications ($2,000), internet based marketing ($1,000) and Manufactures Week activities
($2,500 if funded from donations).
Capital outlay
The capital outlay of $3,541 in 2011 is attributable to Microsoft Office upgrades and a
computer replacement; there are no capital outlay acquisitions for 2012.
82
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 Conduct seminars for homeowners
review and issue permits for residential regarding new deck construction and
and commercial projects. basement remodel projects.
Assist design professionals, contractors Respond to customer complaints
and homeowners with interpretations on concerning construction sites, code
code related questions. enforcement, refuse storage, and other
zoning and housing maintenance.
Perform building related inspections.
Respond to complaints of vacant homes
Issue Certificates of Occupancy for
and inspect home’s condition prior to
permits which meet or exceed permit
occupancy.
requirements.
Perform code compliance inspections.
Coordinate records, consolidate plans
and archives. Participate in the development and
amendments to State and local code
Provide information regarding code
requirements both nationally and locally.
requirements.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Building Official 1.0 1.0 1.0 1.0 1.0
Senior Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Sr. Electrical Inspector 1.0 1.0 1.0 1.0 1.0
Sr. Plumbing/Mechanical Inspector 1.0 1.0 1.0 1.0 1.0
Sr. Building Inspector 1.0 1.0 1.0 1.0 1.0
Building Inspectors 2.7 2.0 2.0 2.0 2.0
Total 8.7 8.0 8.0 8.0 8.0
83
INSPECTIONS
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Construction valuations – all
$72,782 $100,000 $54,475 $66,801 $80,786
property types (000)
Number of permits issued 3,962 4,000 4,000 4,250 4,500
Aging permits 1,300 1,.300 1,300 1,400 1,500
Number of inspections 14,126 15,000 15,000 15,500 16,000
New residential housing units 174 120 159 185 222
Code enforcement activities
Zoning complaints 90 90 90 100 110
Weeds and grass complaints 137 130 130 130 130
Vacant structures monitored 36 78 78 70 70
Plan review (decks, finished
668 800 800 800 800
basements)
Community Survey:
Quality of Service is
Residents who
service is considered
Service/Program
support current
excellent or essential or very
funding level
good important
Residential Responses:
Building inspections 65% 76% 84%
Property maintenance enforcement 78% 79% 86%
Business Responses
:
Building inspections 69% 71% 67%
Property maintenance enforcement 78% 82% 73%
2010 Goals and Objectives:
Continue to work on aging permits issued in 2008 and older. Aging permits are those permits
that are more than two years old, have not requested any inspections and/or have not received
final inspection and approvals.
Maintain 1998 service level standards whereby inspections are conducted within 1 day of
request; 2-3 day processing of deck and addition permits applications; 8-10 day processing of
new home permits applications; and 8-10 day for processing issuance of
commercial/industrial permits application.
84
INSPECTIONS
(continued)
Implement new changes to commercial energy code in 2010.
Continue implementation of the document imaging system and records retention schedule.
Review the new June 2009 State energy code and implement changes.
Evaluate current policies and procedures. Address uniformity of standardized inspections.
Implement changes which increase efficiency and improve customer service.
Establish a tracking process for commercial/industrial projects and issuance of temporary
certificate of occupancy (TCO) and full certificate of occupancy (CO).
Update all printed project information and make available on the web site.
Revise City ordinance on Subsurface Sewage Treatment Systems (SSTS) to reflect changes
adopted by the state and county.
2011 – 2012 Goals and Objectives:
Maintain 1998 service level standards whereby inspections are conducted within 1 day of
request; 2-3 day processing of deck and addition permits applications; 8-10 day processing of
new home permits applications; and 8-10 day for processing issuance of
commercial/industrial permits application.
Continue to work on aging permits issued in 2008 and older. Begin working on 2009 and
older permits in 2011.
Continue to scan parcel files (approximately 12,000) into our document imaging system and
comply with our records retention schedule and make available at the counter for our
customers.
Test and evaluate new wireless mobile computer system station for field inspection services
in order to improve efficiency and eventually implement paperless program.
Continue to address uniformity of inspections, standardized inspections and electronic policy
manual updates as needed.
Update all project handouts and make available on the web site.
Evaluate current policies and procedures and implement changes to increase efficiency and
customer service.
85
INSPECTIONS
(continued)
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 846,944$ 791,529$ 791,995$ 799,638$ 810,083
Commodities 13,929 20,464 17,786 18,409 18,746
Other charges and services 67,873 76,703 72,842 67,331 69,881
- 2,772 2,747 46,028 5,445
Capital outlay
$ 928,746$ 891,468$ 885,370$ 931,406$ 904,155
Total
Revenues
Permits$ 911,126$ 738,851$ 886,457$ 1,062,037$ 1,264,279
Charges for services 9,392 7,679 11,796 13,258 15,230
8,228 144,938 (12,883) (143,889) (375,354)
Taxes and other public funds
$ 928,746$ 891,468$ 885,370$ 931,406$ 904,155
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $8,109 and $10,445 for 2011 and 2012
respectively due to unemployment claims, health insurance and a State mandated .25%
adjustment in PERA pension contributions. Wage adjustments, if any, are yet to be
determined.
Commodities
The commodities budget will decrease by $2,055 in 2011 due to primarily to motor fuels
consumption and increase $337 in 2012.
Other charges and services
Other charges and services budget will decrease by $9,372 in 2011 due to reductions in
professional services for sprinkler plan review services and data processing services. The
budget will increase $2,550 in 2012 for data processing and profession development training.
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades in 2011 and computer replacements
in 2011 and 2012. Two pickups will be replaced by fuel efficient vehicles.
86
GENERAL GOVERNMENT FACILITIES
Program Description:
The General Government Facilities Department is responsible for the maintenance and operating
costs of City Hall, a storage facility, the former police station building (vacated August 2008),
the Historical Society Building, 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.
Square
Location Footage
Facility
General Government Facilities Budget
20195 Holyoke Avenue 32,600
City Hall
th
7773 214 Street 25,000
Storage Facility
20110 Holyoke Avenue 16,406
Former Police Station
th
8795 210 Street 2,428
Historical Society
17900 Jacquard Avenue 800
Radio Communications Building
Other Budgets
rd
9237 183 Street 68,569
Police Station
20190 Holyoke Avenue 8,700
Fire Station #1
16720 Dodd Boulevard 5,724
Fire Station #2
17490 Kenrick Avenue 5,500
Fire Station #3
th
9465 185 Street 13,830
Fire Station #4
18400 Ipava Avenue 47,125
Water Treatment Facility
16179 Kenrick Avenue 9,714
Liquor Store Kenrick
16000 Galaxie Avenue 11,300
Liquor Store Galaxie
20164 Heritage Drive 8,960
Liquor Store Heritage
th
7570 179 Street West 110,000
Central Maintenance Facility
20732 Holt Avenue 4,959
Senior Center
20965 Holyoke Avenue 8,200
Arts Center
Services:
Protect the investment the City and the and cleaning staff necessary to perform
Community have made in its facilities by required job functions.
developing and implementing long term
Manage facilities maintenance and repair
facility maintenance programs to keep
projects.
life cycle costs of the facilities as low as
Administer contracts and direct
possible.
contractors for landscaping, HVAC,
Plan for and procure services,
generator maintenance, snow removal,
equipment, tools and supplies necessary
electrical, plumbing, janitorial, food
for effective and efficient operations.
services, etc.
Plan, organize, coordinate, assign, and
Preventive maintenance programs.
monitor work of facilities maintenance
87
GENERAL GOVERNMENT FACILITIES
(continued)
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Estimate Budget Estimate Estimate Estimate
Facility Maintenance Coordinator 1.0 1.0 1.0 1.0 1.0
City Hall Receptionists (Part-time) 1.0 1.0 1.0 1.0 1.0
City Hall Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Total 3.0 3.0 3.0 3.0 3.0
Activity Measures:
2009 2010 2010 2011 2012
Facility
Actual Budget Estimate Estimate Estimate
City Hall (32,600 sq. ft.)
Energy costs per sq. ft. $ 1.77 $ 2.31 $ 1.74 $ 1.83 $ 1.72
Contracted repairs/maintenance
$ 1.52 $ 1.47 $ 1.46 $ 1.44 $ 1.40
per sq. ft.
Storage Facility (25,000 sq. ft.)
Energy costs per sq. ft. $ 0.11 $ 0.12 $ 0.12 $ 0.13 $ 0.14
Contracted repairs/maintenance
$ 0.08 $ 0.06 $ 0.08 $ 0.15 $ 0.16
per sq. ft.
Vacant Former Police Station (16,406 sq. ft.)
Energy costs per sq. ft. $ 0.50 $ 1.02 $ 0.54 $ 0.62 $ 0.64
Contracted repairs/maintenance
$ 0.67 $ 0.27 $ 0.21 $ 0.24 $ 0.24
per sq. ft.
Historical Society Building (2,428 sq. ft.)
Energy costs per sq. ft. $ 1.19 $ 1.51 $ 1.17 $ 1.21 $ 1.27
Contracted repairs/maintenance
$ 0.19 $ 0.72 $ 0.71 $ 0.74 $ 0.74
per sq. ft.
Radio Communications Building (800 sq. ft.)
Energy costs per sq. ft. $ 0.55 $ 1.46 $ 1.46 $ 1.46 $ 1.53
88
GENERAL GOVERNMENT FACILITIES
(continued)
2010 Goals and Objectives:
To successfully provide customer focused service and maintain the buildings and operating
systems in the best possible condition.
Manage renovation and construction projects assuring the most effective use of governmental
funds.
Projects will be developed which will improve working and citizens environments.
Strive to respond in a timely, courteous manner to all work requests and minimize callbacks.
Keep the facilities clean, safe, and comfortable.
2011 - 2012 Goals and Objectives:
Replace the heating ventilation and air conditioning system at City Hall with an energy
efficient system.
Replace furnace at fire station #2 with energy efficient system.
Purchase and install various energy efficient projects at the Central Maintenance Facility.
Install energy management controls at Police Station.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 198,911$ 200,567$ 200,450$ 206,359$ 209,338
Commodities 28,376 43,406 37,242 39,210 39,080
Other charges and services 253,553 287,263 250,624 259,994 259,910
- 2,772 2,747 4,974 -
Capital outlay
$ 480,840$ 534,008$ 491,063$ 510,537$ 508,328
Total
Revenues and other financing
sources
Miscellaneous$ 88,346$ 44,990$ 43,494$ 44,581$ 45,696
Other financing sources 66,202 70,143 63,744 66,068 66,768
Taxes and other public funds
326,292 418,875 383,825 399,888 395,864
$ 480,840$ 534,008$ 491,063$ 510,537$ 508,328
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $5,792 and $2,979 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
89
GENERAL GOVERNMENT FACILITIES
(continued)
The commodities budget will decrease by $4,196 and $130 in 2011 and 2012 respectively due
to reductions in office supplies, toner cartridges and paper supplies.
Other charges and services
Other charges and services budget will decrease by $27,269 in 2011 and $84 in 2012. Energy
improvements in recent years have resulted in a $13,847 decrease in electricity consumption.
Favorable weather conditions, energy improvements and reduction in prices have resulted in a
$9,585 decrease in the natural gas costs.
Capital outlay
Capital outlay is $4,974 in 2011 for Microsoft Office upgrades, computer replacement and
installation of fiber connections at City Hall.
90
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 related services, licenses, public safety
prepare the annual audit and activities and quarterly water and
Comprehensive Annual Financial Report sanitary sewer services. Manage utility
(CAFR). Maintain high quality audit billings to provide high quality customer
results and minimize audit costs. service and timely deposit of collections.
Preparation of required State, Federal
Fiscal agent for ALF Ambulance,
and other government agency reports.
Dakota Communications Center, and
Maintain general ledger and fixed capital
Lakeville Arenas. Services include
asset systems and perform various
preparation of Comprehensive Annual
accounting functions such as
Financial Report, interim financial
reconciliation of various accounts.
reports, accounts payable functions,
Treasury management including treasury management, budgeting, and
investment of City funds, accounts debt management.
payable function, debt management and
Budget administration including the
reporting and manage bank agreements
Capital Improvement Plan.
and transactions to minimize costs and
Supervision of City risk management
maximize efficiency.
program.
Billing and collection for City services
including but not limited to development
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Finance Director 1.0 1.0 1.0 1.0 1.0
Senior Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Senior Accountants 2.6 2.6 2.6 2.6 2.6
Accountant II 0.9 0.8 0.8 0.8 0.8
Accounts Payable Technician 1.0 1.0 1.0 1.0 1.0
Total 6.5 6.4 6.4 6.4 6.4
91
FINANCE
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Bond rating Aa2 Aa2 Aa1 Aa1 Aa1
Outstanding Debt (in millions) $ 105.0 $ 103.0 $ 103.0 $ 102.0 $ 105.0
New Debt Issues (in millions) $ 4.9 $ 0.0 $ 0. 0 $ 5.2 $ 7.4
Total Expenditures/Expenses
$ 55.5 $ 51.3 $ 51.3 $ 51.3 $ 51.3
(in millions)
Investment Portfolio (in $ 37.1 – $ 37.0 – $ 37.0 – $ 37.0 – $ 37.0 –
millions) $ 62.0 $ 57.2 $ 57.2 $ 57.2 $ 57.2
Interest earnings (in millions) $ 0.7 $ 0.4 $ 0.5 $ 0.6 $ 0.7
Yield on investments 1.60% 1.00% 1.10% 1.25% 1.50%
Investment benchmark (2 year
0.92% 1.25% 0.60% 0.80% 1.00%
Treasury Bill)
June 16 May 31 May 31 May 31 May 31
Date City Audit Completed
Number of Years earned the
GFOA Certificate of
21 22 22 23 24
Achievement for Excellence in
Financial Reporting
Unqualified Audit Opinion Yes
Anticipated Anticipated Anticipated Anticipated
GFOA Award: Distinguished
ndrdrdthth
2 3 3 4 5
Budget Presentation Award
2010 Goals and Objectives:
GFOA Certificate of Achievement for Financial Reporting.
GFOA Distinguished Budget Presentation Award.
Issue debt for Certificates of Indebtedness and Street Improvements.
Work with Information Technology and user departments to complete e-payment and credit
card capabilities to receive payments for various City services, in particular utility bills.
(Strategic Goal
Identify and evaluate alternatives to the property tax for paying for services.
A – 4).
(Strategic
Reduce reliance on City property taxes for regional/county road improvements.
Goal B-4)
Conversion of fixed capital asset system.
92
FINANCE
(continued)
2011 – 12 Goals and Objectives:
(Strategic
Assist with financial analysis related to acquiring land for fourth Liquor Store
Goal A - 5)
Document City’s efforts to reduce reliance on property taxes for regional/county road
(Strategic Goal B-1)
improvements
Provide financial framework for long term maintenance, replacement and financing of
(Strategic
infrastructure through development of a five-year Capital Improvement Plan.
Goal J - 1
)
Provide quality periodic and annual financial and budget reports.
Provide quality finance related communications to the community.
Select and implement a financial institution to provide banking services.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 487,169$ 489,359$ 489,514$ 495,315$ 500,427
Commodities 3,410 3,750 3,722 4,550 3,650
Other charges and services 57,117 61,422 60,127 67,160 64,828
- 553 553 1,554 -
Capital outlay
$ 547,696$ 555,084$ 553,916$ 568,579$ 568,905
Total
Revenues and other financing
sources
Charges for services$ 79,591$ 102,197$ 102,147$ 120,133$ 122,167
Other financing sources 40,663 43,140 43,140 44,435 45,767
Taxes and other public funds
427,442 409,747 408,629 404,011 400,971
$ 547,696$ 555,084$ 553,916$ 568,579$ 568,905
Total
Budget Factors:
Personnel services
The personnel services budget will increase $5,956 and $5,112 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
Commodities will increase $800 in 2011 primarily for purchase of check stock and decrease
$900 in 2012.
93
FINANCE
(continued)
Other charges and services
The $5,738 increase in other charges and services for 2011 is due primarily to the professional
services required for the calculation of the post employment benefit actuarial study in order to
comply with the Governmental Accounting Standards Board regulations. Budget also includes
annual financial audit service ($29,400), printing of truth-in taxation notices ($5,700) and
LOGIS data processing ($35,075).
Other charges and services will decrease by $2.332 in 2012. Of the total decrease, $4,515 is
attributable to completion of the post employment benefit actuarial study in 2011.
Capital outlay
Microsoft Office upgrades included in the 2011 budget.
94
INFORMATION SYSTEMS
Program Description:
The Information Systems Department is responsible for providing and supporting the electronic
information systems to 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 training and software support to
City personnel.
Provide support for users of City
information systems. Maintain and assist in development of
the City’s World Wide Web and Intranet
Establish and maintain network systems
sites.
to allow efficient flow of information.
Coordinate and monitor Internet access
Coordinate future systems development.
for City employees.
Maintain and support the City’s local
Coordinate with City staff and LOGIS
area networks.
on the deployment and operation of
Assist with the maintenance and
applications.
development of the City’s wide area
Provide desktop support to City staff.
network.
Provide maintenance and support for
Perform maintenance and repair work on
document imaging solution
city-owned computing equipment.
Development and implementation of
Perform installation, maintenance, and
City data security plan and disaster
upgrades of city-owned computer
recovery.
software, and VoIP telephones.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Information Systems (IS) Manager 1.0 1.0 1.0 1.0 1.0
IS Network Specialist 1.0 1.0 1.0 1.0 1.0
IS Technicians 1.3 1.0 1.0 1.0 1.0
Total 3.3 3.0 3.0 3.0 3.0
95
INFORMATION SYSTEMS
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Estimate Budget Estimate Estimate Estimate
Data Switches 28 28 28 28 28
Desktop VoIP Telephones 270 270 270 270 270
Laptops 42 42 46 48 46
Laser Printers 28 26 26 26 28
Mobile Computers - Fire 6 6 6 12 12
Mobile Computers - Police 27 28 27 28 29
Multifunction – copier/scanner 9 11 11 11 11
Servers - Data/Storage/VoIP 21 10 10 10 10
Servers – virtual 18 19 19 19 19
Software Applications 200 200 200 200 200
Telephone Calls - System Wide 364,172 360,000 365,000 365,000 365,000
Wireless Access Points 24 28 28 28 28
Workstations on LAN 177 177 177 177 177
2010 Goals and Objectives:
Begin contract negotiations with Charter Business Link for continued lease and operation of
Wide Area Network fiber, prior to the 2011 expiration of the existing lease agreement.
Finalize implementation of 4.9 GHz network between City Hall and Police station for use as
a failover data network in the event of service interruption of the existing fiber connection.
Install wireless access point within the Fire stations to allow data downloads from the
network to update applications in mobile computer units.
Continue to develop and implement the Information Technology Disaster Recovery Plan.
Implementation of Microsoft Office 2010 Upgrade to all workstations, conduct end user
training of application and support for users after conversion.
Upgrade of e-mail server application to Exchange 2007 and implementation of new features
to ensure continued availability of City e-mail communications.
Work with LOGIS to complete the annual security audit of network architecture.
Continue to design, implement and train staff on the Laserfiche document storage and
retrieval system.
Complete research and begin implementation of Virtual Server farm to replace the existing
hardware with the two server farm locations.
Test and document credit card data storage locations and controls and ensure procedures are
compliant with Protection Card Information (PCI) Standards.
96
INFORMATION SYSTEMS
(continued)
2011 - 2012 Goals and Objectives:
Finalize contract negotiations with Charter Business Link for continued lease and operation
of Wide Area Network fiber, prior to the 2011 expiration of the existing lease agreement.
Finalize implementation of 4.9 GHz network between City Hall and Police station for use as
a fail over data network in the event of service interruption of the existing fiber connection.
Install wireless access point within the Fire stations to allow data downloads from the
network to update applications in mobile computer units.
Continue to develop and implement the Information Technology Disaster Recovery Plan.
Implementation of Microsoft Office 2010 Upgrade to all workstations, conduct end user
training of application and support for users after conversion.
Upgrade of e-mail server application to Exchange 2010 and implementation of new features
to ensure continued availability of City e-mail communications.
Work with LOGIS to complete the annual security audit of network architecture.
Continue to design, implement and train staff on the Laserfiche document storage and
retrieval system.
Complete research and begin implementation of Virtual Workstations to replace the existing
hardware.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 320,480$ 295,766$ 293,855$ 302,079$ 304,925
Commodities 3,321 8,954 8,954 8,954 8,954
Other charges and services 128,676 140,153 152,472 151,818 156,428
28,002 9,468 19,803 3,630 6,811
Capital outlay
$ 480,479$ 454,341$ 475,084$ 466,481$ 477,118
Total
Revenues and other financing
sources
Other financing sources$ 86,426$ 84,715$ 82,560$ 83,978$ 85,096
394,053 369,626 392,524 382,503 392,022
Taxes and other public funds
$ 480,479$ 454,341$ 475,084$ 466,481$ 477,118
Total
Budget Factors:
97
INFORMATION SYSTEMS
(continued)
Personnel services.
The personnel services budget will increase $6,313 and $2,846 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
There are no proposed changes to the commodities budget for 2011 and 2012.
Other charges and services
Other charges and services budget will increase $11,665 and $4,610 in 2011 and 2012
respectively. The increase in 2011 is primarily the result of new maintenance agreements for
CarteGraph, an infrastructure inventory and maintenance software. The 2012 increase is for
anticipated increases in existing maintenance agreements.
Capital outlay
Capital outlay is attributable to desktop computer replacements in 2011 and 2012. Server and
network hardware replacements are included in the Equipment Fund budget.
98
HUMAN RESOURCES
Program Description:
The City Human Resources Department is responsible for development, recommendation and
implementation of policies on human resources related 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 Partner in recruitment and performance
administration management with all departments.
Payroll administration. Personnel records management.
Workers compensation claims Compensation and classifications system
processing. administration
Staffing:
2009 2010 2010 2011 2012
Position (FTE) Actual Budget Estimate Estimate Estimate
Human Resources Manager 1.0 1.0 1.0 1.0 1.0
Benefits Specialist 1.0 1.0 1.0 1.0 1.0
Payroll Technician 0.8 0.8 0.8 0.8 0.8
Total 2.8 2.8 2.8 2.8 2.8
Activity Measures
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Vacancies Filled, excluding
10 18 18 15 15
seasonal
Applications processed 901 1,450 1,450 1,150 1,150
Regular Employees 217 220 220 220 220
Seasonal Employees 115 115 115 115 115
Workers Compensation Claims 60 38 38 40 40
Payroll Services (W-2’s generated) 435 437 437 437 437
99
HUMAN RESOURCES
(continued)
2010 Goals and Objectives:
Competitive compensation through regular market analysis.
Cost-effective insurance options by assisting participants in becoming smarter consumers.
Effective cost-saving partnerships with other entities.
Conversion to electronic time card system.
2011 – 2012 Goals and Objectives:
Negotiate affordable collective bargaining agreements with three unions.
Maintain competitive compensation and benefit packages for all employees.
Successfully achieve Pay Equity based on 2010 data.
Support the Insurance Committee in analyzing cost-effective benefit options for 2011 and
beyond.
Ensure that the city is prepared for all mandates through the Health Care Reform Act
effective 2010 through 2014.
Continue to simplify document management using computer technology; i.e., HRconnection,
electronic time cards, personnel files, and on-line benefit enrollment.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 233,655$ 245,336$ 245,385$ 250,248$ 252,412
Commodities 677 2,010 1,260 2,590 1,570
Other charges and services 38,386 46,577 56,468 51,165 56,026
- - - 1,283 5,445
Capital outlay
$ 272,718$ 293,923$ 303,113$ 305,286$ 315,453
Total
Revenues and other financing
sources
Other financing sources$ 70,095$ 73,573$ 76,008$ 76,438$ 84,761
202,623 220,350 227,105 228,848 230,692
Taxes and other public funds
$ 272,718$ 293,923$ 303,113$ 305,286$ 315,453
Total
100
HUMAN RESOURCES
(continued)
Budget Factors:
Personnel services.
The personnel services budget will increase $4,912 and $2,164 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
The commodities budget will increase by $580 in 2011 due to purchase of labor law posters
and printing of time cards and decrease by $1,020 in 2012.
Other charges and services
Other charges and services will increase by $4,588 and $4,861in 2011 and 2012 respectively.
The majority of the increase in 2011 is for professional consulting fees and management
assessments. The 2012 increase is for printing public information.
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades in 2011 and computer replacements
in 2012
101
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 in 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. The Insurance program 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.
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Experience Modification Ratio
General Liability .752 .763 .763 .763 .763
2010 Goals and Objectives:
Facilitate safety committee meeting and safety incentive program on a monthly basis.
Coordinate workers compensation and property/casualty insurance coverage renewal
processes.
Conduct safety audits for all major City facilities.
2011 - 2012 Goals and Objectives:
Facilitate safety committee meeting and safety incentive program on a monthly basis.
Coordinate workers compensation and property/casualty insurance coverage renewal
processes.
Conduct safety audits for all major City facilities.
102
INSURANCE
(continued)
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
$ 280,031$ 278,698$ 278,698$ 289,532$ 298,301
Other charges and services
Revenues
$ 280,031$ 278,698$ 278,698$ 289,532$ 298,301
Taxes and other public funds
Budget Factors:
Other charges and services
The budget will increase by $10,834 and $8,769 in 2011 and 2012 in anticipation of LMCIT
premium increases.
103
POLICE
Program Description:
The primary function of the Police Department is to safeguard and protect the lives, health and
property of Lakeville Citizens. The Department includes a wide array of public safety functions
including patrol, investigations, proactive drug enforcement, animals control, canine unit, police
reservists, Chaplaincy, park ranger and Emergency Management Preparedness.
Services:
Patrol. Courts and prosecution.
Provide 911 uniformed patrol City attorney
response 24 hours a day, 7 days a week prosecutes those who endanger the lives
including traffic safety and code and property of others.
enforcement , conflict resolution team,
School Resource Liaisons.
Two police
MAAG team and special operations
officers are assigned to the senior high
team
and middle schools during the school
Dispatching.
City of Lakeville is a year.
member of the Dakota Communication
Emergency Management.
Function
Center Joint Powers Organization which
includes civil defense siren system,
provides dispatching services for all
Special Operations Team, participation
police, fire and emergency management
in County wide domestic preparedness
services in the county.
committee and preparation for possible
Investigations.
Adult and juvenile community emergencies.
investigations of criminal activity.
Animal Contro
l. The Animal Control
Includes crime scene investigation unit
unit is responsible for dog licensing and
and one officer assigned to the South
animal law code enforcement.
Metro Drug Task Force.
Community Service Officer (CSO).
Records management.
The support
Provide assistance to sworn officers and
staff is responsible for maintenance of
animal control unit. Responsible for
police records in accordance with State
maintenance of facility and vehicles.
and federal data practice laws.
During the summer, the police
Administration.
Provide background department employs seasonal CSO’s
and compliance checks for licensing and who maintain order at the Lake Marion
permitting functions including alcohol boat launch and enforce park
and tobacco server training. Public regulations.
education programs including Child
Police Reserves.
The Police Reserve
Safety Programs, Citizens Academy and
unit is comprised of non-sworn
crime prevention, safety camp
volunteers who assist the police officers
participation, Police cable TV
with special events and community
programming and Night to Unit
emergencies.
program.
104
POLICE
(continued)
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Sworn Officers
Chief 1.0 1.0 1.0 1.0 1.0
Captains 2.0 2.0 2.0 2.0 2.0
Sergeants 10.0 10.0 10.0 10.0 10.0
Investigators 6.0 6.0 6.0 6.0 6.0
Narcotics Task Force Officer 1.0 1.0 1.0 1.0 1.0
Patrol Officers 31.0 31.5 31.5 32.0 33.0
Total Sworn Officers 51.0 51.5 51.5 52.0 53.0
Crime Prevention Coordinator 1.0 1.0 1.0 1.0 1.0
Community Public Safety Officers 0.3 --- --- --- ---
Community Service Officers 3.8 3.8 3.8 3.8 3.8
Animal Control Officer 1.0 1.0 1.0 1.0 1.0
Records Supervisor 1.0 1.0 1.0 1.0 1.0
Records Administrative Assistants 4.0 4.0 4.0 4.0 5.0
Total 62.1 62.3 62.3 62.8 64.8
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Calls for service – police 40,964 43,830 41,500 42,000 43,200
Calls for service per officer 803 --- 802 802 800
Officers per thousand population 0.92 0.92 0.92 0.92 0.95
Response times (min.) – critical
1.69 2.00 1.80 1.80 1.80
incidents
Assigned cases – Investigators 1,330 1,300 1,300 1,300 1,300
Calls for service – records 10,009 11,900 10,100 10,190 10,280
Reports and Citations processed 14,362 14,307 14,300 14,300 14,300
Calls for service – animal control 1,813 2,241 1,820 1,825 1,830
105
POLICE
(continued)
Community Survey:
Service is
Quality of Residents who
considered
Service/Program service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Police protection 97% 100% 81%
Traffic enforcement 90% 98% 92%
Animal control 82% 72% 85%
CSO-seasonal (Park rangers) 43% 33% 57%
Business Responses:
Police protection 97% 98% 90%
Traffic enforcement 92% 92% 87%
Animal control 70% 62% 69%
CSO-seasonal (Park rangers) 39% 36% 43%
2010 Goals and Objectives:
Be a regional leader in disaster preparedness.
Prioritize police officer time on core law enforcement – patrol and investigative functions.
Maintain and enhance the programs and strategies that have given the police department the
ability to prevent and reduce crime in our community, as well as investigate crimes that have
already occurred culminating in a very high clearance rate.
Develop strategies that help to identify and manage the community and criminal issues that
come with a growing community. Foreseeing the needs of the public and possible
enforcement issue in advance will be very important in meeting those needs in the future.
Using state of the art technology and tactics to keep up with a changing community and
changing demographics. Using the internet and other communication tools to better
communicate and keep our citizens informed of community happenings.
Hiring and developing employees to better meet the needs of an ever changing citizenry. The
objective includes keeping employees healthy and balanced is a big part of being better
prepared to meet the needs of the citizens we serve.
Crime prevention and traffic enforcement – The Department will create a full-time traffic
unit and a full-time crime prevention unit with existing personnel.
106
POLICE
(continued)
2011 - 2012 Goals and Objectives:
Investigations. Maintain the highest clearance rate in Dakota County
Records management. Implement new LOGIS police records management system, as well as
police mobile computer and computer aided dispatch system.
Administration. Evaluate computer systems operated by Dakota County and LOGIS. Select
the system that provides the greatest efficiencies.
Administration. Evaluate various options for developing a shooting range.
Emergency management. Implement upgrades to outdoor siren warning system in
compliance with federal mandates.
Emergency management. Be a regional leader in disaster preparedness. Improved
(Strategic
measurements in proactive police activities, as developed by the Police Chief.
Plan F – 1)
Administration. Prioritize police officer time on core law enforcement – patrol and
(Strategic Plan F – 2)
investigative functions.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ProgramActualBudgetEstimateBudgetEstimate
Police patrol$ 3,730,429$ 4,077,490$ 4,131,337$ 4,256,230$ 4,397,799
Dispatching 866,785 933,514 933,514 971,380 1,022,284
Investigations 792,504 908,214 899,424 908,376 918,107
Records management 395,479 417,225 416,898 422,868 489,779
Administration 488,428 476,283 474,984 475,843 477,258
Vehicle and equipment maint. 189,273 287,597 283,593 292,807 301,371
Courts and prosecution 226,065 225,006 225,006 229,835 236,730
K-9 unit 221,430 260,763 241,427 223,864 226,263
Facility maintenance 211,013 286,934 210,543 220,192 232,175
School Resource Officer 150,279 182,675 179,471 181,375 183,858
Community Service Officer 190,476 187,405 154,119 191,668 198,109
Animal control 78,828 83,915 78,031 79,390 80,583
Police reserves 10,143 13,431 12,894 33,304 16,280
Crime prevention 71,860 1,895 1,895 3,570 4,995
Chaplaincy 237 250 250 250 250
Other 17,670 20,348 20,348 21,395 21,394
Total$ 7,640,899$ 8,362,945$ 8,263,734$ 8,512,347$ 8,807,235
107
POLICE
(continued)
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 5,805,225$ 6,223,339$ 6,201,162$ 6,364,994$ 6,594,834
Commodities 250,460 347,810 346,534 383,555 374,430
Other charges and services 1,584,828 1,782,485 1,706,727 1,763,798 1,837,971
386 9,311 9,311 - -
Capital outlay
$ 7,640,899$ 8,362,945$ 8,263,734$ 8,512,347$ 8,807,235
Total
Revenues and other financing
sources
Licenses$ 151,241$ 163,490$ 171,404$ 158,524$ 185,619
Intergovernmental 426,768 435,380 388,784 388,784 388,784
Charges for services 278,985 243,696 233,478 238,730 242,798
Court fines 297,413 273,055 288,260 294,026 299,906
Miscellaneous 530 13,411 13,411
Other financing sources 84,668 87,208 57,136 59,752 60,595
6,401,294 7,146,705 7,111,261 7,372,531 7,629,533
Taxes and other public funds
$ 7,640,899$ 8,362,945$ 8,263,734$ 8,512,347$ 8,807,235
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $141,655 due to health insurance, police officer
return from military duty and a State mandated .25% adjustment in PERA pension
contributions. Wage adjustments, if any, are yet to be determined.
Personnel budget will increase $229,840 in 2012 primarily due to the addition of one Police
Officer and one Records Administrative Assistant.
Commodities
The commodities budget will increase by $35,745 in 2011. The largest increase is for
uniforms ($17,000) for ten new Reservists who will be inducted into the police department as a
result of attrition. Motor fuels ($189,000) and uniforms ($89,604) comprise over 73% of the
total commodities budget. Commodities budget will decrease $9,125 in 2012.
Other charges and services
Other charges and services will decrease by $18,687. Dispatching services of the Dakota
Communications Center will increase $37,866. Energy conservation improvements in previous
years have resulted in a $28,095 decrease in electricity consumption. Favorable weather
conditions, energy improvements and reduction in prices have resulted in a $24,040 decrease
in the natural gas costs.
Dispatching service of the Dakota Communications Center ($971,380), prosecution attorney
($229,835), Police Station facility maintenance and utilities ($206,757) and LOGIS data
processing ($98,473) comprise 86% of budgeted other services and charges.
108
POLICE
(continued)
Other charges and services will increase by $74,173 in 2012 primarily as a result of the
dispatching services ($50,904) and facility maintenance and utilities ($12,752)
Capital outlay
Capital outlay is accounted for in the Equipment Fund.
109
FIRE
Program Description:
The City of Lakeville Fire Department is organized and designed to provide responsive, efficient
and effective for life and property protection. 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 personnel and equipment capabalities to
fight major fires and meet the demands of a large scale emergency.
Services:
Emergency Response Fire prevention inspections.
Fire suppression.
Fire Investigation
Emergency Medical Response (EMS).
Fire cause determination.
Vehicle extrication – rescue.
Education
Ice & water rescue.
Firefighters’ initial and continued
Domestic security and emergency
education and certification.
management.
Safety Camp.
Hazardous condition and disaster
Night to Unite.
mitigation.
Fire prevention visits to schools.
Prevention
“On Call” cable TV program.
Plan review.
Station tours.
Alarm and suppression system
Public and employee fire extinguisher
acceptance testing.
training.
Occupancy inspections.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Fire Chief 1.0 1.0 1.0 1.0 1.0
Fire Marshal 1.0 1.0 1.0 1.0 1.0
Fire Inspector 1.0 1.0 1.0 1.0 1.0
Fire Department Office Supervisor 1.0 1.0 1.0 1.0 1.0
Administrative Assistant 0.6 0.6 0.6 0.6 0.6
Total 4.6 4.6 4.6 4.6 4.6
110
FIRE
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Paid On-Call Fire Fighters 78 85 77 78 90
Calls
Fire-Related Calls 125 147 130 136 144
Medical Calls 212 303 220 231 243
Rescue Calls 77 133 80 84 88
Fire Alarms 231 334 240 253 266
Good Intent/Other 319 238 330 346 361
Total Calls 964 1,155 1,000 1,050 1,102
Commercial Fire Inspections 274 435 350 400 425
Plan Reviews 40 70 40 45 50
Fire Education Visits (outside) 185 210 200 210 220
Fire Education Tours (in-house) 55 75 60 65 70
Response Times
Less Than Six Minutes 29% 35% 30% 30% 30%
6 – 10 Minutes 53% 55% 55% 57% 58%
More Than Ten Minutes 18% 10% 15% 13% 12%
Community Survey:
Service is
Quality of Residents who
considered
Service/Program service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Fire protection 97% 99% 91%
Business Responses:
Fire protection 93% 99% 90%
111
FIRE
(continued)
2010 Goals and Objectives:
Transition of newly developed fire records management system including integration with
fire pre-plan and commercial property inspection program.
Department training improvements for firefighters and officers. Offer additional training to
meet department needs.
Commercial property inspections every other year. Complete one half of the commercial
property inspections in 2010.
Lakeville Fire Department leadership, communication and training work plan for short and
long term goals.
Continued integration of Lakeville Fire Department dispatch operations with Dakota
Communications Center (DCC).
Partner with Police Department on development of emergency operations plan for the City,
including training for City employees.
Improve response time to emergency calls; respond when needed with appropriate resources.
Maintain adequate number of paid on call firefighters.
Continue long-term needs analysis for full build-out of fire department facilities.
Maintaining four fire stations.
Fire department records management and retention project.
2011 – 2012 Goals and Objectives:
Transition to new fire department leadership.
Transition of newly developed fire records management system including integration with
fire pre-plan and commercial property inspection program to enable tracking and
documentation of Fire Marshal and Inspector activities.
Fire department records management and retention project.
Department training improvements for firefighters and officers; offer formal training to
credential department members.
Develop formal training program to credential officers in Incident Command System.
Lakeville Fire Department leadership, communication and training work plan for short and
long term goals.
Recruit and train new rookie fire fighters
Partner with Police Department on development of emergency operations plan for the City,
including training for City employees.
Improve response time to emergency calls; respond when needed with appropriate resources.
Maintain adequate number of paid on call firefighters.
Continue long-term needs analysis for full build-out of fire department facilities
112
FIRE
(continued)
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 894,802$ 940,681$ 894,056$ 916,789$ 906,824
Commodities 62,715 145,424 170,198 138,629 112,683
218,823 285,486 275,164 276,619 270,708
Other charges and services
$ 1,176,340$ 1,371,591$ 1,339,418$ 1,332,037$ 1,290,215
Total
Revenues
Intergovernmental$ 194,873$ 191,809$ 190,209$ 190,209$ 190,209
Charges for services 45,517 45,615 45,905 47,113 48,355
Miscellaneous 400
935,550 1,134,167 1,103,304 1,094,715 1,051,651
Taxes and other public funds
$ 1,176,340$ 1,371,591$ 1,339,418$ 1,332,037$ 1,290,215
Total
Budget Factors:
Personnel services.
The personnel services budget will decrease $23,892 in 2011 primarily because of reductions
in the number of fire calls. Personnel costs will increase $9,965 in 2012 because of
disbursements to the rookie firefighters for training. The personnel costs include health
insurance and a State mandated .25% adjustment in PERA pension contributions. Wages,
firefighter pensions and firefighter compensation adjustments, if any, are yet to be determined.
Commodities
The commodities budget will decrease $6,795 due to reductions in motor fuels. The
commodities budget will decrease $25,946 in 2012 due to a reduction in protective bunker gear
for rookie firefighters.
Other charges and services
Other charges and services budget will decrease $8,867 in 2011. Energy improvements in
recent years have resulted in a $3,041 decrease in electricity consumption. Favorable weather
conditions, energy improvements and reduction in prices have resulted in a $7,109 decrease in
the natural gas costs. Maintenance and energy efficiency projects for the four fire stations will
result in an additional $5,374 expenses for the coming year. A rookie firefighter class was
added in 2010 and a slightly larger rookie class is anticipated to be added in 2011 which
accounts for a $4,080 increase in 2011 costs for professional medical services and training.
The other charges and services budget will decrease $5,911 in 2012 primarily as a result of
adding a new rookie firefighter class in 2011.
Capital outlay
Capital outlay is accounted for in the Equipment Fund.
113
ENGINEERING
Program Description:
The Engineering Department is responsible for planning, design, surveying, inspection,
construction, and rehabilitation of the public infrastructure including streets, wastewater
collection system, water supply, storage and distribution system, storm water management
system, bike and pedestrian pathways, street signs, street lighting, and traffic signals. The
Engineering 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 infrastructureCustomer service.
. Provide design The Department
services, project oversight and assists residents and provides technical
management for streets, sanitary sewers, assistance for drainage problems,
drainage and water projects, to include grading issues, erosion control and drain
wetland mitigation plans Provide tile. Includes review of residential,
management of the public assessments commercial, industrial and institutional
and other property data. Prepare surveys and construction plans (Site,
feasibility studies for public projects that Grading, Erosion Control, Street and
are assessed. Inspect tree preservation of Utility). Includes inspection for general
all new developments. compliance to the approved survey and
subdivision plans. Respond to resident
New development
. Engineering
inquires regarding drainage alteration
Department reviews proposed,
and flood zones. Manages the public
preliminary and final plats related to new
rights of way for all City streets.
residential, commercial and industrial
Records Management.
development construction projects. The department
Process ensures that plans are in maintains the official City base maps,
conformance with Comprehensive Plans, as-builts, plans, records and property
ordinances and City of Lakeville data relating to special assessments.
Standard Specifications.
Geographic Information System
Comprehensive Plans.(GIS).
Department Develop and maintain the City’s
prepares and provides technical GIS database. Coordinate the
oversight and review of the maintenance, development, and
Comprehensive Plans for Surface Water application of GIS system. Manage the
Management, Sanitary Sewer, Water comprehensive inventory of City
Distribution System, and Transportation. utilities. Manage the information
conduit between Dakota County GIS and
the City.
114
ENGINEERING
(continued)
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Engineering
City Engineer 1.0 1.0 1.0 1.0 1.0
Assistant City Engineer 1.0 1.0 1.0 1.0 1.0
Civil Engineer 1.0 1.0 1.0 1.0 1.0
Sr. Construction Representative 1.0 1.0 1.0 1.0 1.0
Special Assessment/Property Data
0.3 --- --- --- ---
Technician
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
GIS
GIS Coordinator 1.0 1.0 1.0 1.0 1.0
GIS Technician 1.0 1.0 1.0 1.0 1.0
Total 7.3 7.0 7.0 7.0 7.0
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
City Improvement Projects Designed
$1,947,823 $1,065,000 $1,065,000 $ 751,958 $ 861,487
In-House (Pavement Management)
City Improvement Projects Designed
--- --- --- $2,024,441 $3,975,334
In-House (Street Reconstruction)
City Improvements Designed by
$2,386,544 $1,250,000 $1,250,000 $1,500,000 $1,750,000
Consultants
Preliminary Plats 7 12 8 10 12
Final Plats 8 12 10 12 15
Sketch Plans 1 8 8 10 12
Building Permits 174 120 159 185 222
2010 Goals and Objectives:
Continue needed improvements to local, county and regional transportation network
(Strategic Plan B – 3)
East - West corridors.
o
(Strategic Plan B – 4)
I-35 interchanges.
o
Dodd Boulevard as a major artery linking Lakeville residents to the East-West corridor
o
(Strategic Plan B – 5)
routes.
115
ENGINEERING
(continued)
Provide for framework for long-term maintenance, replacement and financing of aging
(Strategic Plan J - 1)
infrastructure.
th
Perform inspection on the 175 St./Kenrick Ave. Round-About.
Perform the inspection on the utilities and street construction that are installed on the
Elko/New Market interceptor project.
Oversee the yearly pavement management project to include estimating, bidding, managing,
and inspecting the project by Department staff.
The Department will assist in the preparation of the plans and specifications for the following
City Projects:
th
Well #7 (20585 Kenrick Ave.) and Well #13 (9471-176 St.) Rehabilitation.
o
st
Lift Station #3 (Italy Ave./201 St.) Repair.
o
Design, bid, manage and inspect Safe Routes to School project.
o
Construction of Fieldstone Creek Park facilities.
o
Development of a trail head facility at the Murphy Hanrehan Park.
o
2011 - 2012 Goals and Objectives:
Continue needed improvements to local, county and regional transportation network
(Strategic Plan B – 3)
East - West corridors.:
o
(Strategic Plan B – 4)
I-35 interchanges.:
o
Dodd Boulevard as a major artery linking Lakeville residents to the East-West corridor
o
(Strategic Plan B – 5)
routes. :
Provide for framework for long-term maintenance, replacement and financing of aging
(Strategic Plan J - 1)
infrastructure.
Dodd Boulevard Reconstruction. Assist in the design (storm sewer) and design review and
provide construction observation of the public utilities and street construction.
Provide design, construction observation and contract administration/project management
services for the following
Annual street reconstruction project
o
Annual pavement management/roadway maintenance
o
th
185 Street / Kenwood Trail round about.
o
thst
Kenrick Avenue: 175 Street to 181 Street.
o
Cedar Avenue BRT.
o
Safe Routes to School Grant
o
Dodd Boulevard Trail Improvement project
o
Provide construction observation of the public utilities and street construction to be installed
with the Elko/New Market sanitary sewer interceptor project
116
ENGINEERING
(continued)
Develop as-built certification of grading system for single-family residential building permits
to streamline the building permit process and reduce grading/drainage complaints
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 657,243$ 647,833$ 643,465$ 651,671$ 666,275
Commodities 9,532 15,292 15,090 14,911 14,983
Other charges and services 36,753 57,091 58,264 56,679 58,585
Capital outlay - - - 24,453 9,598
$ 703,528$ 720,216$ 716,819$ 747,714$ 749,441
Total
Revenues and other financing
sources
Charges for services$ 477,878$ 281,382$ 286,548$ 191,422$ 217,037
Other financing sources 106,162 115,785 97,733 107,400 109,545
Taxes and other public funds
119,488 323,049 332,538 448,892 422,859
$ 703,528$ 720,216$ 716,819$ 747,714$ 749,441
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $3,838 and $5,432 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
In addition, personnel services in 2012 are anticipated to increase an additional $4,079 due to
step increases. Wage adjustments, if any, are yet to be determined.
Commodities
The commodities budget will decrease by $381 and increase by $72 in 2011 and 2012
respectively due to motor fuels and equipment parts.
Other charges and services
Other charges and services will decrease by $412 and increase $1,906 in 2011 and 2012
respectively. The 2012 increases are primarily the result of training and licensure renewals.
Capital outlay
Capital outlay for 2011 is attributable to computer replacements ($6,513), Microsoft Office
upgrades ($3,039), GIS software improvements ($10,571) and three traffic counters ($4,330).
Capital outlay in 2012 includes replacement of aging computers ($4,698) and GIS software
improvements ($4,900).
117
STREETS
Program Description:
The Streets Division 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, and storm sewer systems as well as the support systems such as fleet
and facilities management.
Services:
Snow removal and ice controlBoulevard trees & mowing
. Plow . Maintain
snow and apply deicing chemicals to 3,700 boulevard trees to include
City streets during snow and ice events trimming, removal, and replacement as
to maintain a safe driving surface. needed. Mow 87 miles of boulevards
and city owned parcels twice annually.
Fleet management.
Perform routine
Storm sewer maintenance.
maintenance and repairs of entire city Inspect 20
fleet of 245 vehicles and mobile percent of the City’s storm sewer
equipment. outfalls each year to control water
pollution by locating and correcting
Street signs and striping
. Inventory,
point sources that discharge pollutants.
manage, and install regulatory and
Gravel road maintenance.
informational street signs as well as Regular
traffic control stripping of roadways and grading and shaping of road surfaces and
crosswalks. the application of chemicals to reduce
dust and stabilize the roadway.
Pavement Management.
Manage
Streetlights.
contractors in the seal coating and crack Inspect streetlights
sealing of 258 centerline miles of streets throughout the City and manage the
within Lakeville’s pavement repair or replacement of damaged or
management districts. Includes milling, inoperative lights.
overlays, patching, and other repairs of
streets and sidewalks
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Adopted Estimate Estimate Estimate
Streets Superintendent 1.0 1.0 1.0 1.0 1.0
Streets Supervisor 1.0 1.0 1.0 1.0 1.0
Streets Lead 1.0 1.0 1.0 1.0 1.0
Service Technician Lead (Fleet) 1.0 1.0 1.0 1.0 1.0
Streets Maintenance II 10.4 10.0 10.0 10.0 10.3
Fleet Service Technicians 4.0 4.0 4.0 4.0 4.0
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Total 19.4 19.0 19.0 19.0 19.3
118
STREETS
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Labor Hours For:
Pothole repairs 2,524 2,400 2,500 2,500 2,500
Ditch mowing 188 300 250 250 250
Street sweeping 1,849 2,000 2,000 2,000 2,000
Shoulder/gravel road
1,046 1,100 1,100 1,100 1,100
maintenance
Storm sewer maintenance 766 700 750 750 750
Boulevard tree trimming 1,899 300 1,500 1,500 1,500
Boulevard weed control 73 150 100 100 100
Number Of:
Centerline miles (all roads) 258 267 260 262 262
Gravel roads (miles) 9 9 9 9 9
Snow/ice events 42 50 50 50 50
Deicer applied (tons) 2,319 5,000 5,000 5,000 5,000
Tons/mile (season) 9 19 19 19 19
Cost per mile 600 1,270 1,270 1,333 1,333
Fleet preventive maintenance
1,217 1,225 1,225 1,225 1,225
services
Community Survey:
Service is
Quality of Residents who
considered
Service/Program
service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Storm drainage and flood control 88% 89% 84%
Street lighting 88% 93% 82%
Snow plowing 89% 98% 91%
Street sweeping 86% 75% 78%
Street maintenance and repairs 75% 94% 92%
Mowing of boulevards 83% 76% 80%
119
STREETS
(continued)
Service is
Quality of Residents who
considered
Service/Program service is support current
essential or very
excellent or good funding level
important
Business Responses:
Storm drainage and flood control 88% 94% 83%
Street lighting 89% 92% 85%
Snow plowing 95% 96% 90%
Street sweeping 88% 67% 75%
Street maintenance and repairs 82% 94% 88%
Mowing of boulevards 83% 66% 70%
2010 Goals and Objectives:
Locate the inlet and outlet of storm sewer outfalls using the Global Positioning System (GPS)
to improve inspections.
Establish a data base of sign information for inventory control to include the GPS locations
for all City signs.
Complete NPDES inspections of 100 storm sewer outfalls and the cleaning and maintenance
of 20 storm sewer outfalls and 450 storm sewer sedimentation sumps.
Provide additional training for staff in snowplow operations through the Dakota County
Technical College.
Complete the inspection of signs in the 2010 sign district and replace any damaged or faded
signs in accordance with retroflectivity standards.
Inspect 4,070 street lights throughout the City for operation and manage the repair and
replacement of damaged or inoperative lights.
2011 – 2012 Goals and Objectives:
Administration
Implement the CarteGraph Systems Work Director application.
o
Boulevard Trees and Mowing
Inspect approximately 3,700 boulevard and out lot trees and trim, by district, approximately
o
400 trees every year to remove dead, damaged, and diseased limbs.
Manage right of way along rural roads and remove trees, limbs, and brush which obstructs
o
movement and sight lines.
Mow approximately 87 miles of boulevards and city owned parcels throughout the City
o
twice during the summer.
120
STREETS
(continued)
Pavement Management and Sidewalks
Manage the reconstruction of streets as delineated in the Pavement Management Study.
o
Annually inspect and evaluate approximately 86 miles or one third of City streets for
o
pavement condition and update the pavement management database.
Provide routine pavement maintenance, including crack sealing and seal coating of
o
approximately 20 miles of streets based on the pavement condition index.
Annually inspect 24 miles of sidewalks and make repairs as necessary for pedestrian safety.
o
Snow and Ice Control
Provide additional staff training on snowplow operation and the application and use of
o
deicing chemicals.
Continue to evaluate all plow routes to ensure effective, efficient, and safe snow and ice
o
control.
Storm Sewer System
Locate the inlet and outlet of storm sewer outfalls using the GPS to improve inspections.
o
Complete annually the NPDES inspections of 100 storm sewer outfalls and the cleaning
o
and maintenance of 20 storm sewer outfalls and 450 storm sewer sedimentation sumps.
Traffic Signs
Conduct a retro-reflectivity study in accordance with federal mandates and implement a
o
sign management plan.
Establish a data base of sign information for inventory control to include the GPS locations
o
for all City signs.
Continue the inspection of signs in the 2011 sign district and replace any damaged or faded
o
signs.
.Fleet Management
Implement new fleet asset management software.
o
Transition to and implement a new fuel dispensing and monitoring system.
o
121
STREETS
(continued)
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ProgramActualBudgetEstimateBudgetBudget
Administration 312,101 360,240 349,027 357,261 372,767
Snow removal and ice control 649,489 691,443 641,096 693,137 717,161
Fleet management 411,670 383,178 414,504 442,136 457,488
Signs and stripping 198,455 214,281 191,844 207,527 205,212
Pavement management 154,341 155,903 163,611 168,206 174,749
Central Maintenance Facility 122,211 139,323 120,478 120,586 123,395
Boulevard trees and mowing 104,494 82,920 106,529 108,711 112,751
Gravel roads and dust control 84,632 81,234 83,626 85,926 88,924
Street sweeping 95,487 92,091 103,308 105,677 109,760
Storm sewer systems 103,856 81,669 103,462 106,648 111,041
Traffic signal systems 8,749 10,625 9,425 10,146 10,933
Sidewalks, curbs and gutters 7,752 7,526 7,742 7,936 8,259
Other 590,367 56,623 29,653 29,252 29,154
Total$ 2,843,604$ 2,357,056$ 2,324,305$ 2,443,149$ 2,521,594
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 1,419,760$ 1,429,994$ 1,423,219$ 1,462,719$ 1,506,724
Commodities 616,102 681,945 675,445 734,724 766,464
Other charges and services 807,742 245,117 225,641 245,706 248,406
$ 2,843,604$ 2,357,056$ 2,324,305$ 2,443,149$ 2,521,594
Total
Revenues and other financing
sources
Intergovernmental$ 237,002$ 374,962$ 374,962$ 374,962$ 374,962
Charges for services 565,700 18,165 14,097 17,146 18,246
Other financing sources 104,041 78,386 109,615 108,620 113,598
Taxes and other public funds
1,936,861 1,885,543 1,825,631 1,942,421 2,014,788
$ 2,843,604$ 2,357,056$ 2,324,305$ 2,443,149$ 2,521,594
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $32,725 and $44,005 for 2011 and 2012
respectively due to health insurance and a State mandated .25% adjustment in PERA pension
contributions. A seasonal employee is also included in both years to assist with the sign
program and vehicle maintenance. Wage adjustments, if any, are yet to be determined.
Commodities
122
STREETS
(continued)
The commodities budget will increase by $52,779 in 2011 which is primarily due to cost of ice
control chemicals assuming normal weather conditions. Ice control chemicals are
approximately $368,136 and thus represent approximately 50% of total commodities expenses.
Motor fuels, equipment parts and maintenance materials (gravel) comprise the next largest
categories with $ 125,802 (17%), $71,035 (10%), and $57,257 (8%) respectively.
Commodities are anticipated to increase $31,740 in 2012 for various expenditures including
but not limited to ice control chemicals, motor fuels and equipment parts.
Other charges and services
Other charges and services will increase by $589 in 2011 and $2,700 in 2012 respectively. The
significant expenditures include gas and electric ($94,220) and contract pavement stripping
($67,979).
Capital outlay
Capital outlay is accounted for in the Equipment Fund.
123
PARKS
Program Description:
The City of Lakeville provides a comprehensive community-wide array of park facilites and
opens spaces. The Parks Department is committed to the effective and responsible management
of park, open space, facilities and resources to satisfy the needs of the community.
Services:
Parks administration is responsible for Manage and maintain the five hockey
planning, management and supervision and pleasure skating areas.
of various program functions including
Collaborate with and assist various
park maintenance, recreation, the
community groups and civic
Lakeville Area Arts Center, and the
organizations as well as three school
Lakeville Senior Center.
districts to plan, organize, promote and
Planning, administering and managing enhance other activities and
resources for park maintenance, opportunities within the City of
improvements and development. Lakeville.
Provide routine maintenance of all Oversee the organization and
athletic fields and facilities including implementation of community-centered
Central Maintenance Facility, Senior special events such as Household
Center, Historical Society Building, Arts Hazardous Waste Drop-off Day, Annual
Center and the Ritter Farm Park Tree Sale, Family Fun Fest, Taste of
Environmental Learning Center. Lakeville, Fourth of July Celebration,
Community clean-up Day, Pan-O-Prog,
Provide routine maintenance to all
Lakeville Art Festival, and numerous
neighborhood parks and associated
youth athletic tournaments.
support facilities.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Administration
Parks and Recreation Director 1.0 1.0 1.0 1.0 1.0
Senior Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Parks Maintenance
Operations and Maint. Manager 1.0 1.0 1.0 1.0 1.0
Superintendent 0.2 --- --- --- ---
Supervisor 0.3 1.0 1.0 1.0 1.0
Parks Lead 1.0 1.0 1.0 1.0 1.0
Maintenance II 8.5 8.5 8.5 8.5 8.5
City Forester .5 .5 .5 .5 .5
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Total 14.5 15.0 15.0 15.0 15.0
124
PARKS
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Number of Parks 59 59 59 59 59
Number of Park Facilities (a) 344 348 348 348 348
Number of Park Facility
726 726 726 726 726
Reservations Taken
Total Acres of all Parks,
1,636 1,636 1,636 1,636 1,645
Conservation Areas and Greenways
Turf/Active Acres 470 470 470 470 475
Miles of Asphalt Trails 91 91 91 92 93
Miles of Grass/Wood Chip Trails 10 10 10 10 10
Boulevard mowing (miles) 37 37 37 37 37
Playgrounds 40 40 40 40 40
Soccer, baseball, softball, football
132 132 132 132 132
and lacrosse fields
Active ice rink sites 11 6 6 6 6
Inactive ice rink sites 0 5 5 5 5
Active flower beds
9 9 9 9 9
(maintained by volunteers)
Inactive flower beds 51 51 51 51 51
(a) Includes City owned/maintained permanent buildings, temporary portable warming houses,
ball diamonds/play fields, soccer fields, play equipment, tennis and basketball courts, picnic
shelters, skating rinks, beaches, pedestrian bridges/boardwalk fishing piers, paved and gravel
parking lots.
Community Survey:
Service is
Quality of Residents who
considered
Service/Program service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Upkeep and maintenance of parks 95% 88% 86%
Outdoor ice rinks 54% 37% 55%
Upkeep and maintenance of city
72% 64% 79%
beaches
Forestry program 42% 36% 57%
Condition of city trails 82% 66% 83%
Snow removal on city trails 64% 46% 69%
Trail lighting 60% 68% 83%
125
PARKS
(continued)
Service is
Quality of Residents who
considered
Service/Program service is support current
essential or very
excellent or good funding level
important
Business Responses:
Upkeep and maintenance of parks 82% 70% 64%
Outdoor ice rinks 56% 40% 51%
Upkeep and maintenance of city
58% 57% 58%
beaches
Forestry program 41% 37% 49%
Condition of city trails 67% 52% 65%
Snow removal on city trails 56% 53% 62%
Trail lighting 56% 72% 70%
2010 Goals and Objectives:
Administration
Provide parks and open space for a fully developed city prior to the loss of available and
(Strategic Plan Goal E – 1 and E – 2)
desired land to develop.
Continue efforts to assist the Miracle Field development.
Manage the 2010 Capital Projects Park Dedication Fund.
Assist and act as resource to all civic groups and associated major special events.
Manage general operations of park maintenance and recreation departments as well as the
Lakeville Area Arts Center.
Continue fundraising activities for all major special events and programs.
Finalize Chadwick Trail from Chadwick Park to Idaho Avenue as part of South Creek Trail
Corridor.
Design and construct Fieldstone Park, a 10-acre neighborhood park in northeast Lakeville.
Design and construct irrigation system at North Park.
Maintenance
Continue to maintain and enhance all turf areas, playfields, hard courts, hockey rinks and
recreation facilities in the park system.
Continue emphasis on maintenance, renovation, and upgrades of parks and infrastructure.
Continue to update and purchase equipment as part of capital outlay/equipment replacement
schedule.
Develop system to rate condition of trails to determine scheduled replacement or overlay.
Work with Lakeville Soccer Club regarding executing a cost share program for installation of
an in-ground irrigation system at North Park.
Commence process of designing and constructing Fieldstone Creek Park.
Promote collaborative efforts with Lakeville Baseball Association to complete baseball field
improvements at Foxborough Park.
126
PARKS
(continued)
2011 - 2012 Goals and Objectives:
Administration
Provide parks and open space for a fully developed city prior to the loss of available and
(Strategic Plan Goal E – 1 and E – 2)
desired land to develop.
Continue efforts to assist the Miracle Field development.
Fundraising activities for all major special events and programs.
Complete final punch list and install remaining park amenities at Fieldstone Park.
Finalize irrigation control system at North Park.
Design and construct a trail along the east side of Dodd Rd. from County Road 50 to Itea
Way.
Administration of Bury Property acquisition grants.
Lake Marion Loop Trail grant administration.
Administration of Active Livings grant. Establish several trail way finding sign systems
throughout the community.
Assist Street Department with development of an Emerald Ash Bore Management Plan.
Participate in the design of a proposed Senior Center/Historical facility.
Design and construct Stoneborough Park, a 6 acre neighborhood park.
Maintenance
Develop system to rate condition of trails to determine scheduled replacement or overlay.
Promote collaborative efforts with ISD #194 to complete improvements of softball field at
Lakeview Elementary School.
127
PARKS
(continued)
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ProgramActualBudgetEstimateBudgetBudget
Park maintenance 1,002,248 1,214,135 1,134,400 1,166,627 1,171,853
Park equipment maintenance 288,263 329,316 352,471 357,276 363,286
Administration 346,060 363,149 369,592 386,434 391,529
Central maintenance facility 91,681 110,261 93,790 98,936 96,404
Hockey and skating rinks 120,636 89,533 114,525 119,760 121,138
Trail lighting 38,159 45,840 41,769 45,644 47,926
Total$ 1,887,047 $ 2,152,234 $ 2,106,547 $ 2,174,677$ 2,192,136
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 1,350,669$ 1,494,618$ 1,493,471$ 1,528,373$ 1,552,225
Commodities 208,062 270,730 249,626 252,987 255,487
Other charges and services
328,316 386,886 363,450 393,317 384,424
$ 1,887,047$ 2,152,234$ 2,106,547$ 2,174,677$ 2,192,136
Total
Revenues and other financing
sources
Intergovernmental$ 2,718$ 200$ 200$ 200$ 200
Charges for services 37,395 34,403 34,866 34,903 34,903
Miscellaneous 5,145
Taxes and other public funds 1,846,934 2,117,631 2,066,336 2,139,574 2,157,033
$ 1,887,047$ 2,152,234$ 2,106,547$ 2,174,677$ 2,192,136
Total
Budget Factors:
Personnel services.
The personnel services budget will increase $33,755 and $23,852 for 2011 and 2012
respectively due to health insurance and a State mandated .25% adjustment in PERA pension
contributions.
Commodities
The commodities budget will by decrease by $17,743 in 2011 and increase $2,500 in 2012
primarily due to changes in motor fuel consumption. Motor fuels are the largest single
commodity ($59,400) representing 46.8% of the Parks department commodity budget.
128
PARKS
(continued)
Other charges and services
Other charges and services will increase by $8,893 in 2011. This increase is the net effect of a
$26,743 increase in major maintenance project costs offset by a reduction of $17,221 in
Central Maintenance Facility utility costs. The utility costs’ reduction are attributable to
energy efficiency upgrades and changes to programming and operating procedures. The most
significant line items are contract landscaping ($54,072), electricity ($88,177) and waste
disposal ($25,509). The Park Department share of Central Maintenance Facility Other Charges
and Services is $87,286.
Other charges and service will decrease $8,893 in 2012 primarily due to reduced major
maintenance projects.
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades and computer replacements in 2011
and computer replacements in 2012. Capital outlay for vehicles and equipment is accounted
for in the Equipment Fund.
129
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:
Senior Citizens.Tennis lessons
City maintains a and camps with the
facility to serve the senior population. support of United States Tennis
Recreation and social programs are Association (USTA).
provided year round through the facility.
Excursions
. A diverse program of day
Youth activities
. A variety of programs trips is offered to various locations
are provided including summer camps, throughout the metropolitan area.
firearms safety, golf, Kamp Kermit,
Ritter Park ELC.
The Environmental
Learn to Skate, Sports Unlimited, and
Learning Center is located in one of the
Youth Enrichment.
metropolitan areas most pristine nature
Adult activity.
Leagues are organized areas. Nature programs provide
through the Recreation Department that participants with educational
include basketball, softball, volleyball, opportunities in a natural environment.
broomball, dodge ball, as well as the
Puppet Wagon.
The Lakeville Lions
Ground Pounders Running Series and
sponsor a mobile puppet show that
golf lessons.
travels to various community parks
Youth special events
. Programs include during the summer season.
Arbor Day, Egg Hunts, Fishing Contests,
Safety Camp.
A program that is offered
Haunted Forest, Once Upon a Star, Pan-
rdth
exclusively to 3 and 4 graders, with
O-Prog programs, Santa Calls, Holiday
the support of Lakeville Police and Fire,
Lights, and Santa Store.
Dakota Electric, and the National Guard.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Recreation Supervisor 1.0 1.0 1.0 1.0 1.0
Recreation Program Supervisor 1.0 1.0 1.0 1.0 1.0
Recreation Program Assistant 0.2 --- --- --- ---
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Senior Center Coordinator 1.0 1.0 1.0 1.0 1.0
Senior Center Admin. Assistant 0.7 0.7 0.7 0.7 0.7
Total 4.9 4.7 4.7 4.7 4.7
130
RECREATION
(continued)
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Recreation/Senior Center
$275,954 $295,760 $297,810 $297,810 $297,810
Revenues
Program Registrations –
7,453 9,629 7,453 7,453 7,453
Participants
Youth Activities - Participants 1,313 2,407 1,313 1,313 1,313
Puppet Wagon – Attendance 2,162 2,194 2,162 2,162 2,162
Ritter Farm Park - Participants 103 656 103 103 103
Youth Safety Camp - Participants 85 78 85 85 85
Adult League – Teams 232 243 232 232 232
Adult League - Team Participants 3,480 3,645 3,480 3,480 3,480
Senior Center – Members 1,122 1,135 1,122 1,122 1,122
Community Survey:
Service is
Quality of Residents who
considered
Service/Program
service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Park and recreation programming 79% 63% 83%
Senior Center programming 51% 58% 68%
Business Responses:
Park and recreation programming 61% 54% 59%
Senior Center programming 39% 61% 63%
2010 Goals and Objectives:
Continue to expand level of programming (quantity and quality) with no direct impact on
City subsidy through self-supporting recreation programs. Specific areas of focus include:
community events, family activities, healthy initiatives, nature based/environmental
education, and cooperative programming with other public or private agencies.
Enhance customer service to residents through marketing and office automation
improvements to include web site development and on-line program registration.
Provide continuing emphasis on expanding/enhancing alliances and partnerships with
community groups, organizations, and businesses to effectively enhance the provision of
recreation programs and activities.
131
RECREATION
(continued)
2011 - 2012 Goals and Objectives:
Enhance communication efforts of Parks and Recreation offerings to the community thru the
use of multi faceted avenues to include social media, the internet and list serve
Evaluate program offerings to determine if any updating, fine tuning, major changes,
replacement, or elimination is necessary.
Continue to expand level of programming (quantity and quality) with no direct impact on
City subsidy through the use of the self-supporting recreation programs. Specific areas of
focus include: community events, family activities, healthy initiatives, nature
based/environmental education, and cooperative programming with other public or private
agencies.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ProgramActualBudgetEstimatebudgetBudget
Recreation Administration$ 255,802$ 249,625$ 253,612$ 249,630$ 259,111
Senior citizens 154,544 188,211 183,711 183,729 190,654
Youth activities 79,206 83,102 86,402 85,755 85,755
Adult activities 31,808 39,442 39,234 39,442 39,442
Youth special events 11,187 11,721 11,721 11,721 11,721
Tennis lessons 10,092 9,052 9,063 9,063 9,063
Excursions 9,029 6,371 6,371 6,371 6,371
Ritter Park ELC 7,029 5,006 5,018 5,018 5,018
Puppet wagon 3,280 3,870 3,870 3,870 3,870
Safety camp 2,122 3,675 3,675 3,675 3,675
Total$ 564,099$ 600,075$ 602,677$ 598,274$ 614,680
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 327,914$ 325,814$ 325,273$ 320,016$ 323,097
Commodities 17,686 25,700 24,941 25,712 25,712
Other charges and services 214,836 246,479 250,213 249,981 251,826
3,663 2,082 2,250 2,565 14,045
Capital outlay
$ 564,099$ 600,075$ 602,677$ 598,274$ 614,680
Total
Revenues
Charges for services$ 272,908$ 295,760$ 302,510$ 301,647$ 301,647
Miscellaneous 703
290,488 304,315 300,167 296,627 313,033
Taxes and other public funds
$ 564,099$ 600,075$ 602,677$ 598,274$ 614,680
Total
132
RECREATION
(continued)
Budget Factors:
Personnel services.
The personnel services budget will decrease $5,798 in 2011 as a result of cost allocations and
increase $3,081 for 2012. Personnel costs include anticipated increases health insurance and a
State mandated .25% adjustment in PERA pension contributions. Wage adjustments, if any,
are yet to be determined. Personnel costs represent 53.5% of the total Recreation budget.
Commodities
The commodities budget will increase by $12 in 2011 with no anticipated changes in 2012.
Commodities represent 4.3% of the total Recreation budget
Other charges and services
Other charges and services will increase by $3,502 and $1,845 in 2011 and 2012 respectively.
The largest expenditure is for contractual recreation program services ($155,253).
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades and a computer replacement in
2011. The 2012 capital outlay consists of computer replacements and office furniture.
133
ARTS CENTER
Program Description:
The Lakeville Area Arts Center is a community facility that provides educational, entertainment
and recreational programs involving the visual and performing arts.
Services:
The art center offers a series of The pottery program offers classes for
performing art classes involving a adults, youth, and special programs
diverse variety of talent appealing to a during the school day for home schooled
wide range of audience members. youth.
Professional singers, instrumentalists,
Art classes are provided for a diverse
comedians, and actors are scheduled as
spectrum of interests including
part of the season series.
silversmithing, glass lampworking,
“Expressions! Community Theater” is batik, seasonal ornaments, dolls, purses,
comprised of area performers that and jewelry.
produce three comedies per year.
The art center facility is also available to
Art camps provide educational visual host a variety of uses including family
arts sessions for the area youth. gatherings, educational training sessions
or business presentations.
Painting classes are offered in acrylics,
oils, and watercolors.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Art Center Coordinator 1.0 1.0 1.0 1.0 1.0
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Building Attendant (Part-time) 1.5 1.5 1.5 1.5 1.5
Pottery Manager 0.2 0.2 0.2 0.2 0.2
Total 3.7 3.7 3.7 3.7 3.7
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Art Center Revenues $190,445 $200,340 $200,922 $212,320 $214,427
Class Attendance 2,056 2,200 2,200 2,200 2,200
LAAC Series Attendance 14,699 15,000 15,000 15,000 15,000
Rental Events Attendance 13,609 14,000 14,000 14,000 14,000
Other Events Attendance* 7,032 7,000 7,000 7,000 7,000
134
ARTS CENTER
(continued)
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Theatrical performances 57 57 57 57 57
Concerts 9 9 9 9 9
Entertainment performances 14 14 14 14 14
Number of ticket sales 10,746 10,746 10,746 10,746 10,746
Number of arts educations classes 322 322 322 322 322
Community Survey:
Service is
Quality of Residents who
considered
Service/Program service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Art Center programming 71% 46% 68%
Business Responses:
Art Center programming 50% 41% 50%
2010 Goals and Objectives:
Maintain and improve the building’s physical appearance.
Improve and develop storage areas for stage equipment, scenery, and lighting.
Develop a varied offering of art classes in many mediums for all ages of students.
Schedule interesting gallery exhibits.
Research entertaining acts for the performance season and negotiate contracts that result in
the generation of revenue.
Support and encourage community groups using the facility for large events such as the Art
Festival, the Taste of Lakeville, and Pan-O-Prog.
Market open times for rental opportunities.
Support the outreach efforts of Expressions! Community Theater and Giant Step Theatre.
Seek grants to support entertainment and the expansion of fine arts programs and studio
space.
Market our facility as neighboring communities open new art centers.
Expand the audience base through an enlarged playbill circulation.
Continue to work cooperatively with the Friends of the Lakeville Area Arts Center.
135
ARTS CENTER
(continued)
2011 - 2012 Goals and Objectives:
Increase the number of show sponsorships for acts in the 2011-2012 Lakeville Area Arts
Center season to increase revenue.
Apply for grants which may be available through the Minnesota Arts and Cultural Heritage
Tax that would allow for additional programs or improve accessibility for the pottery studio.
Develop new partnerships with existing community and area arts organizations such as
Children’s Castle Theatre and the Minnesota Valley Photography Club.
.Explore Folk Art program.
Develop a long term facility and business plan.
Budget Summary:
201020112012
2009Adopted2010ProposedEstimated
ProgramActualBudgetEstimateBudgetBudget
Arts Center Administration 192,853 191,071 188,004 192,161 193,736
Arts Center Building 101,183 129,016 116,556 137,594 124,006
Childrens Theatre 12,178 37,305 39,235 38,650 38,750
Performing Arts Events 44,812 23,950 25,500 25,500 24,500
Art Camp 13,397 18,800 18,800 19,000 19,000
Pottery Camps 20,532 17,240 16,240 16,240 16,240
Expressions! Community Theater 7,301 5,700 5,700 5,700 5,800
Art Classes 3,101 5,100 2,600 2,600 2,600
Painting Classes 3,161 2,000 2,000 2,000 2,000
Total$ 398,518$ 430,182$ 414,635$ 439,445$ 426,632
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures
Personnel services$ 212,527$ 215,803$ 215,668$ 218,353$ 221,469
Commodities 15,891 23,425 20,875 20,475 20,875
Other charges and services 170,100 190,954 178,092 184,380 184,288
- - - 16,237 -
Capital outlay
$ 398,518$ 430,182$ 414,635$ 439,445$ 426,632
Total
Revenues
Charges for services$ 190,188$ 200,340$ 200,922$ 212,320$ 214,427
208,330 229,842 213,713 227,125 212,205
Taxes and other public funds
$ 398,518$ 430,182$ 414,635$ 439,445$ 426,632
Total
Budget Factors:
136
ARTS CENTER
(continued)
Personnel services.
The personnel services budget will increase $2,550 and $3,116 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Personnel costs represent 49.6% of total Arts Center costs. Wage adjustments, if any, are yet
to be determined.
Commodities
The commodities budget will decrease by $2,950 in 2011and increase by $400 in 2012.
Other charges and services
Other charges and services budget will decrease by $6,574 and $92 in 2011 and 2012
respectively. Energy improvements in recent years have resulted in a decrease in electricity
consumption. Favorable weather conditions, energy improvements and reduction in prices
have resulted in a decrease in the natural gas costs.
Capital outlay
Capital outlay is attributable to Microsoft Office upgrades ($855) and major maintenance
projects ($15,382) in 2011.
137
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds from specific revenue sources that
are legally restricted 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 budgets, including long-term replacement of equipment.
Compensation Liability Fund
This fund accounts for the accrued liability of employee benefits attributed to
severance compensation. Funding is provided by property taxes and interest earnings
on investments.
Environmental Resources Fund
This fund accounts for surface water management fees which finance expenditures
directly related to storm water maintenance, education, lake/stream monitoring, and
treatment. The fund also accounts for a Waste Abatement Community Funding Grant
received from Dakota County. The grant finances expenditures that promote solid
waste recycling and community clean up.
Economic Development Fund
This fund accounts for a $125,000 Economic Recovery Grant received from the State
of Minnesota Department of Trade and Economic Development in 1995. The grant
purpose is to provide loans to businesses expanding in or locating to Lakeville. The
fund also accounts for administrative fees received from the issuance of conduit debt.
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Special Revenue Funds
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
Licenses$ 541,541$ 550,654$ 565,258$ 582,215$ 599,682
Intergovernmental 22,912 808 808 42,708 42,708
Charges for services 568,468 611,003 612,703 682,145 679,209
Investment income 36,659 25,311 15,192 10,239 14,179
Miscellaneous
3,926 - 3,312 - -
1,173,506 1,187,776 1,197,273 1,317,307 1,335,778
Total revenues
Expenditures
General government 407,826 420,700 445,821 423,216 445,303
Public safety 18,710 6,833 34,247 6,597 6,795
Public works 359,353 504,587 484,772 657,134 567,550
Parks and recreation 35,401 1,877 1,933 1,991
43,213 25,207 149,145 25,228 34,420
Capital outlay
864,503 957,327 1,115,862 1,114,108 1,056,059
Total expenditures
Excess (deficiency) of revenues
309,003 230,449 81,411 203,199 279,719
over expenditures
Other financing sources (uses)
Transfer from other funds 10,839 8,572 8,572 16,242 6,190
(187,156) (210,049) (205,310) (254,752) (252,807)
Transfer to other funds
(176,317) (201,477) (196,738) (238,510) (246,617)
Total other financing sources (uses)
Net changes in fund balances 132,686 28,972 (115,327) (35,311) 33,102
2,060,839 2,006,326 2,193,525 2,078,198 2,042,887
Fund balance, January 1
$ 2,193,525$ 2,035,298$ 2,078,198$ 2,042,887$ 2,075,989
Fund balance, December 31
2011/2012 Net change in fund balance percentage(1.7%)1.6%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
138
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Special Revenue Funds
For the Year Ending December 31, 2011
2011 Proposed Budget
CompensationEnvironmentalEconomic
CommunicationsLiabiltiyResourcesDevelopmentTotal
Revenues
Licenses$ 582,215$ -$ -$ -$ 582,215
Intergovernmental 516 42,192 42,708
Charges for services 12,000 667,895 2,250 682,145
3,338 4,270 2,010 621 10,239
Investment income
598,069 4,270 712,097 2,871 1,317,307
Total revenues
Expenditures
General government 407,568 15,648 423,216
Public safety 6,597 6,597
Public works 3,790 653,344 657,134
Parks and recreation 1,933 1,933
21,281 - 3,947 - 25,228
Capital outlay
428,849 27,968 657,291 - 1,114,108
Total expenditures
Excess (deficiency) of revenues
169,220 (23,698) 54,806 2,871 203,199
over expenditures
Other financing sources (uses)
Transfer from other funds 15,266 976 16,242
(57,007) - (197,745) - (254,752)
Transfer to other funds
(57,007) 15,266 (196,769) - (238,510)
Total other financing sources (uses)
Net changes in fund balances 112,213 (8,432) (141,963) 2,871 (35,311)
663,555 852,010 500,565 62,068 2,078,198
Fund balance, January 1
$ 775,768$ 843,578 $ 358,602$ 64,939$ 2,042,887
Fund balance, December 31
16.9%-1.0%-28.4%4.6%-1.7%
2011 Net percentage change in fund balance
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
139
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Special Revenue Funds
For the Year Ending December 31, 2012
2012 Estimated Budget
CompensationEnvironmentalEconomic
CommunicationsLiabiltiyResourcesDevelopmentTotal
Revenues
Licenses$ 599,682$ -$ -$ -$ 599,682
Intergovernmental 516 42,192 42,708
Charges for services 677,209 2,000 679,209
7,702 4,230 1,598 649 14,179
Investment income
607,900 4,230 720,999 2,649 1,335,778
Total revenues
Expenditures
General government 429,185 16,118 445,303
Public safety 6,795 6,795
Public works 3,904 563,646 567,550
Parks and recreation 1,991 1,991
34,420 - - - 34,420
Capital outlay
463,605 28,808 563,646 - 1,056,059
Total expenditures
Excess (deficiency) of revenues
144,295 (24,578) 157,353 2,649 279,719
over expenditures
Other financing sources (uses)
Transfer from other funds 5,214 976 6,190
(47,432) - (205,375) - (252,807)
Transfer to other funds
(47,432) 5,214 (204,399) - (246,617)
Total other financing sources (uses)
Net changes in fund balances 96,863 (19,364) (47,046) 2,649 33,102
775,768 843,578 358,602 64,939 2,042,887
Fund balance, January 1
$ 872,631$ 824,214 $ 311,556$ 67,588$ 2,075,989
Fund balance, December 31
12.5%(2.3%)(13.1%)4.1%1.6%
2012 Net percentage change in fund balance
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following this combining schedule.
140
CITY OF LAKEVILLE, MINNESOTA
Special Revenue Funds
Fund Balance Discussion
Communications Fund
The 2011 proposed fund balance is expected to increase by $112,213 or
16.9% and $96,863 or 12.5% in 2012. The 2011 increase is mainly due to completing the
transition to digital broadcasting in 2010 resulting in a $150,000 decrease in capital outlay. The
2012 increase is attributable to several items including an anticipated increase in subscribers,
reduced capital equipment acquisitions, and reduced compensation liability transfers.
Compensation Liability Fund
The 2011 proposed fund balance is expected to decrease by
$8,432 or 1.0% and $19,364 or 2.3% in 2012. Market conditions have significantly reduced
income from investments resulting in retirements exceeding investment income.
Environmental Resources Fund
The 2011 proposed fund balance is expected to decrease by
$141,963 or 28.4% and $47,046 or 13.1% in 2012. The 2011 decrease is mainly due to
hydrologic modeling of the Vermillion River Watershed ($97,000) and obtaining a storm water
(MPCA) MS4 Permit for $55,000. The 2012 decrease is mainly due to transfers for GIS
services.
Economic Development Fund
The 2011 proposed fund balance is expected to increase by
$2,871 or 4.6% and $2,649 or 4.1% in 2012. Beginning in 2008 and continuing through 2017
the City will collect a conduit debt fee from a private activity revenue bond issue.
141
COMMUNICATIONS FUND
Program Description:
The Communications Department is responsible for the City’s primary sources of information
and communication including City newsletter, City website, and Lakeville Government
Television (cable channel 16). The Communications Department also manages the Lakeville
Access Television (cable channel 12). The Departments mission is to provide information
regarding municipal programs and services 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 maintains and promotes the employee
(LGTV) Channel 16.
The intranet.
Communications Department is
Publications.
The department prepares
responsible for creating government
Messages, the City’s weekly newsletter.
television programs for cable Channel
Special publications are produced such
16. The Department produces and
as the new resident guidebook, utility
directs broadcasts of live meetings as
brochure, welcome packet flyers, project
well as prepares for rebroadcast on cable
and events collateral materials, and ads.
Channel 16. Other services include
Marketing plans and focused
updating the electronic message board
communications are prepared for
on cable Channel 16 and working with
projects or programs such as
other departments to create and produce
Comprehensive Land Use Plan, water
special video projects such as the comp
conservation, dog ordinance, etc. Press
plan program, new police station
releases are a responsibility of the
program, etc. The Department also
Department. As well as responding to
monitors Cable Franchise issues and
public inquiries. Developing and
public comments as well as facilitating
promoting the style and image standards
the Telecommunications Commission
for communications pieces are also a
and monitoring MACTA legislative
primary activity
information.
Social media.
The Department
Lakeville Access Television Channel
establishes and maintains City Listservs
12.
The public access television, cable
for automatic e-mail delivery of City
Channel 12 is managed by the
publications.
Communications Department.
Special event planning.
Department is
Website.
Website is maintained by the
responsible for planning and
Communications Department. The
coordination of special events such as
Department also coordinates website
groundbreakings and grand openings.
content with the objectives of other
departments. The Department also
142
COMMUNICATIONS FUND
(continued)
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Communications Manager 1.0 1.0 1.0 1.0 1.0
Communications Specialist 1.0 1.0 1.0 1.0 1.0
Video Production Specialists 1.9 2.0 2.0 2.0 2.0
Total 3.9 4.0 4.0 4.0 4.0
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Listserv Subscribers 7,800 8,200 8,200 8,200 8,200
Web Visitors (avg./month) 26,900 30,000 30,000 30,000 30,000
Messages Issues 52 52 52 52 52
Other Publications 15 23 23 23 23
Speech/Press Releases 20 20 20 20 20
Special Events 3 4 7 7 7
Cable TV Franchise Fee $534,616 $550,654 $565,258 $582,215 $599,682
Cable TV Regular Program
56 56 56 56 56
Episodes
Cable TV Special Programs 6 6 6 6 6
City Council Meetings 48 48 48 48 48
Cable TV Public Service
10 12 15 15 15
Announcements
Social Media --- --- 3 3 3
2010 Goals and Objectives:
To improve the public’s ability to obtain and comment on information about the City.
To market the City’s strengths effectively.
To promote and use consistent style and image standards.
To make residents aware of well-managed government services.
To facilitate and encourage citizen participation in local government.
143
COMMUNICATIONS FUND
(continued)
To enhance Lakeville’s sense of community.
To promote a distinct quality of life unique to Lakeville.
Other
Completed a Strategic Communications Plan to enhance consistent and accurate printed
o
documents, verbal messages, and visual displays for all City communications and
marketing pieces.
Research social; media opportunities and policies with the expectation of proceeding in
o
several forms including Facebook, Twitter, and YouTube.
2011 - 2012 Goals and Objectives:
Update the department’s emergency plan.
Formalize the City Communications strategy.
Create community videos for the website.
Formalize targeted public service announcement programs.
Investigate web improvements such as accessibility and mobile formats.
Renegotiate Franchise Agreement.
Research the development of a quality training program with teleconferences.
144
COMMUNICATIONS FUND
(continued)
Budget Summary:
CITY OF LAKEVILLE, MINNESOTA
Special Revenue - Communications Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
Licenses franchise fee$ 541,541 $ 550,654 $ 565,258 $ 582,215 $ 599,682
Intergovernmental State aid 516 516 516 516 516
Charges for Services 12,000
Investment income 10,067 9,017 3,196 3,338 7,702
3,926 - 3,312 - -
Miscellaneous
556,050 560,187 572,282 598,069 607,900
Total revenues
Expenditures - General government
Personnel services 295,953 312,848 312,286 316,847 320,652
Commodities 3,394 10,337 9,203 9,216 9,228
Other charges and services 67,419 86,842 109,140 81,505 99,305
43,213 22,205 146,143 21,281 34,420
Capital outlay
409,979 432,232 576,772 428,849 463,605
Total expenditures
Excess (deficiency) of revenues
146,071 127,955 (4,490) 169,220 144,295
over expenditures
Other financing (uses) - Transfers
To General Fund (47,267) (48,177) (42,069) (42,551) (43,413)
(9,483) (7,806) (7,806) (14,456) (4,019)
To Sp. Rev. - Comp. Liab.Fund
(56,750) (55,983) (49,875) (57,007) (47,432)
Total other financing (uses)
Net change in fund balance 89,321 71,972 (54,365) 112,213 96,863
628,599 552,039 717,920 663,555 775,768
Fund balance, January 1
$ 717,920$ 624,011$ 663,555$ 775,768$ 872,631
Fund balance, December 31
Net change in 2011 and 2012 fund balance percentage18.3%13.3%
145
COMMUNICATIONS FUND
(continued)
Budget Factors:
Revenues.
Revenues are increasing $31,561 (+5.7%) and $17,467 (+3.0%) in 2011 and 2012 respectively
due to increased subscriptions.
Personnel services.
The personnel services budget will increase $3,440 and $3,848 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
The commodities budget will decrease by $1,121 in 2011 and increase by $12 in 2012.
Other charges and services
Other charges and services budget will decrease by $3,767 in 2011 primarily as a result of not
having a community survey. The budget will increase by $17,800 in 2012 because of the
Community Survey. The largest 2011 expenditure is for printing and distribution of the weekly
newsletter Messages ($43,442).
Capital outlay
Capital outlay in 2011 is attributable to Microsoft Office upgrades, computer replacements and
cable TV monitor replacement in the council chambers. The 2012 capital outlay budget
provides for replacement of desktop computers, video server and a fiber head for high
definition signal.
Other financing (uses)
The Communications Fund budget reimburses the General Fund and Special Revenue Fund for
its share of overhead and administrative costs.
146
COMPENSATION LIABILITY FUND
Program Description:
The Compensation Liability Fund accounts for expenditures attributable to severance and paid
time off benefits disbursed at the time of termination including annual paid time off cash outs.
The primary revenue source is property taxes and transfers from special revenue funds. Benefits
paid to Enterprise Fund employees are accounted for in their respective funds.
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Accrued Severance Liability
$ 1,118,958 $ 1,233,056 $ 1,207,226 $ 1,328,935 $ 1,448,669
Accrued Time Off Liability
$ 450,481 $ 530,359 $ 509,417 $ 578,530 $ 649,247
Total Accrued Liabilities
$ 1,569,439 $ 1,763,415 $ 1,716,643 $ 1,907,465 $ 2,097,916
Total Assets
$ 892,326 $ 890,094 $ 880,393 $ 872,091 $ 852,857
Net Liabilities
$ (677,113) $ (873,321) $ (836,250) $(1,035,374) $(1,245,059)
Percentage of Total Assets to
56.9% 50.5% 51.3% 45.7% 40.7%
Total Accrued Liabilities
2011 - 2012 Goals and Objectives:
Maintain a fund balance sufficient to finance current liabilities.
147
COMPENSATION LIABILITY FUND
(continued)
Budget Summary:
CITY OF LAKEVILLE, MINNESOTA
Special Revenue - Compensation Liability Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
$ 16,318 $ 9,200 $ 8,920 $ 4,270 $ 4,230
Investment income
16,318 9,200 8,920 4,270 4,230
Total revenues
Expenditures - Personnel services
General government 30,517 10,673 15,192 15,648 16,118
Public safety 18,710 6,833 34,247 6,597 6,795
Public works 3,933 2,498 3,680 3,790 3,904
35,401 - 1,877 1,933 1,991
Parks and recreation
88,561 20,004 54,996 27,968 28,808
Total expenditures
Excess (deficiency) of revenues
(72,243) (10,804) (46,076) (23,698) (24,578)
over expenditures
Other financing sources
Transfer from Special Revenue:
Communications Fund 9,483 7,806 7,806 14,456 4,019
1,356 766 766 810 1,195
Environmental Resources Fund
10,839 8,572 8,572 15,266 5,214
Total other financing sources
Net change in fund balance (61,404) (2,232) (37,504) (8,432) (19,364)
950,918 899,434 889,514 852,010 843,578
Fund balance, January 1
$ 889,514$ 897,202$ 852,010$ 843,578$ 824,214
Fund balance, December 31
Net change in 2011 and 2012 fund balance percentage(1.0%)(2.3%)
Budget Factors:
The Paid Time Off (PTO) plan allows for cash payouts of 40 hours per year, an option not
available under the vacation/sick leave policy. Also, the PTO plan created a higher accrual limit
for grandfathered employees with existing sick leave balances over 480 hours and 5 or more
years of service. The limit for new non-police employees will be slightly lower under the PTO
plan. Thus, the liability should continue to increase at an accelerated rate until the grandfathered
employees achieve the PTO accrual limit.
148
ENVIRONMENTAL RESOURCES FUND
Program Description:
The Environmental Resources program 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.
Beginning in 2011, the Environmental Planning Department is also responsible for developing
programs that promote and expand the community’s environmental recycling awareness. These
programs are designed to encourage landfill abatement and proper waste disposal through
education and opportunities. The recycling programs that promote educating, reducing, reusing,
and recycling are funded with a grant from Dakota County.
Services:
Surface water resource monitoring.
The workshops with Dakota County Soil and
Environmental Resources Department Water Conservation District to educate and
coordinates and manages a variety of water promote water quality stewardship among
quality research and improvement projects residents.
including aquatic plant control and fish
Watershed management.
The
management on City water bodies. The
Environmental Resources Department staff
Department also implements the City of
reviews Wetland Delineation and performs a
Lakeville’s Comprehensive Water
majority of the requirements for being the
Resources Management Plan, Wetland
Responsible Governmental Unit and the
Management Plan, South Creek
Local Governmental Unit in relationship to
Management Plan and the City of
environmental permitting. The staff also
Lakeville’s Storm Water Pollution
provides the wetland delineation, mitigation
Prevention Program (SWPPP).
and monitoring plans for public
Surface Water infrastructure improvement projects.
management.
In the management of the
New Development.
The Environmental
storm water treatment basins, the
Resources department ensures that all
environmental resources staff works closely
construction plans for new developments
with Engineering and Operations and
meet NPDES Permit requirements. The
Maintenance staff to perform the work or to
Environmental Resources staff assist in
obtain quotes for the removal of the
preparing wetland alteration permits and
sediments and restoration of the area
mitigation plans, obtains leases from the
disturbed. Environmental resources
DNR for utility crossing of public waters for
determine which storm water basins must be
City projects, performs many of the duties
inspected and cleaned of sediment.
required by local, State and Federal rules
Public education and interaction
. Public and regulations by being either the
education and outreach required by State Responsible Governmental Unit (RGU) or
and Federal regulations are carried out with the Local Governmental Unit (LGU).
the Wetland Health Evaluation Project, the
The Department also provides plan review
Vermillion River Watch program, and
and inspections of all erosion control for
through presentations to various age groups.
industrial, commercial, and institutional
Includes coordination and management the
building permits. They ensure that the
Adopt-a-Pond program, Citizen Assisted
wetland delineations are correct and meet
Monitoring Program and the Blue Thumb
the requirement of the State of Minnesota
149
ENVIRONMENTAL RESOURCES FUND
(continued)
Wetland Conservation Act, that tree recycling program and organizing the annual
preservation plans are accurate and that a Roadside/Watershed Clean-up Day,
developer takes feasible measures to save promotion and education on recycling and
significant trees and protect valuable waste reduction as well as preparing the
natural resources. applications and securing the grant funding
to finance the programs.
Environmental recycling
. Responsibilities
include managing the City of Lakeville’s
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Environmental Resources Manager 1.0 1.0 1.0 1.0 1.0
Environmental Resources Specialist 1.0 1.0 1.0 1.0 1.0
Total 2.0 2.0 2.0 2.0 2.0
Activity Measures:
Surface Water Management
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Final Plat Reviews 8 26 10 12 15
Lot Tree Preservation Reviews 16 80 30 35 40
Erosion Control Inspections 60 125 75 100 125
Wetland Reviews* 27 41 35 45 55
Watershed Cleanup Day
900 950 1,100 1,200 1,300
(volunteers)
Blue Thumb (attendees) 115 --- 77 80 90
* Estimate based on site visits, wetland delineations, monitoring reports and replacement plans
submitted.
150
ENVIRONMENTAL RESOURCES FUND
(continued)
Environmental Recycling
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Drop-Off Day
Appliances 164 150 87 85 85
Auto Batteries 242 250 249 250 250
Electronics (tons) 13.91 13.00 --- --- ---
Used Oil (gallons) 950 1,000 1,100 1,100 1,100
Oil Filters (55-gallon barrels) 4.50 5.00 2.75 2.75 2.50
Customers Served 833 825 752 750 750
Road Side Cleanup Volunteers 900 950 1,100 1,000 1,000
2010 Goals and Objectives:
Ensure that the City of Lakeville meets all the requirements of the Phase III NPDES Permit
requirements.
Update the City of Lakeville’s Storm Water Pollution Prevention Program as required by the
MPCA.
Continue to offer a variety of educational and volunteer opportunities for all ages with Blue
Thumb Adopt-a-Pond programs, as well as through various workshops, events, presentations,
and restorations.
Work with the Vermillion River Watershed and the Black Dog Watershed Management
Organization on the Total Maximum Daily Load assessments for lakes and streams that are
listed as impaired in the City of Lakeville.
Continue to manage exotic curly leaf pondweed at Orchard Lake.
Assess the potential for the spread of exotic species (Zebra mussel) in Lake Marion and
Orchard Lake.
Work with the Fire Department to develop a spill response and obtain training for responsible
staff to meet the requirements of the MPCA and the City of Lakeville’s SWPPP.
Assess East Community Park Wetland and work towards improving water quality within the
water body.
151
ENVIRONMENTAL RESOURCES FUND
(continued)
2011 -2012 Goals and Objectives:
Surface Water Management
Coordinate the update of the City of Lakeville MPCA MS4 (Municipal Separate Storm
Sewer System) permit.
Coordinate the development of a City wide inventory and assessment program for outfalls
and stormwater basins that meets the required by the MPCA 2011 MS4 permit.
Provide educational and volunteer opportunities for all ages that fulfill the requirements of
the MS4 permit. Activities include Blue Thumb program, Adopt-a-Pond programs,
Roadside/Watershed Clean-up Day, Eagle Scout Projects, presentations and events with local
organizations and schools, and restoration projects.
Provide input and direction to the Vermillion River Watershed and the Black Dog Watershed
Management Organization on the development of “Total Maximum Daily Load” assessments
for lakes and streams that are listed as impaired in the City of Lakeville.
Monitor and manage exotic curly leaf pondweed at Orchard and Lee Lake and Eurasian
water milfoil on Lake Marion and Valley Lake.
Submit an annual report outlining all Wetland Conservation Act activities that take place in
the City as required by new Board of Water and Soil Resources rules.
Complete the hydrological modeling of the Vermillion River and Blackdog Watersheds.
Environmental Recycling
Promote annual Drop-Off Day and Road Side Cleanup programs.
Produce more recycling containers in City parks.
Improve City’s recycling web page.
Continue to increase and promote recycling activities throughout the City.
Research and promote expanded recycling activities.
152
ENVIRONMENTAL RESOURCES FUND
(continued)
Budget Summary:
CITY OF LAKEVILLE, MINNESOTA
Special Revenue - Environmental Resources Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
Intergovernmental State aid$ 292 $ 292 $ 292 $ 292 $ 292
Intergovernmental grants 22,104 41,900 41,900
Charges for services 565,968 601,003 610,203 667,895 677,209
9,149 6,316 2,486 2,010 1,598
Investment income
597,513 607,611 612,981 712,097 720,999
Total revenues
Expenditures - Public works
Personnel services 189,068 190,107 191,415 203,740 205,551
Commodities 5,766 9,407 15,276 29,760 29,425
Other charges and services 160,586 302,575 274,401 419,844 328,670
- 3,002 3,002 3,947 -
Capital outlay
355,420 505,091 484,094 657,291 563,646
Total expenditures
Excess (deficiency) of revenues
242,093 102,520 128,887 54,806 157,353
over expenditures
Other financing (uses) - Transfers
To General Fund (108,566) (113,597) (111,316) (151,991) (158,558)
To Sp. Rev. - Comp. Liab. Fund (1,356) (766) (766) (810) (1,195)
From Enterprise - Liquor Fund 976 976
To Enterprise - Utility Fund:
Water operations (18,027) (23,932) (24,622) (26,248) (26,904)
(2,457) (15,771) (18,731) (18,696) (18,718)
Sanitary sewer operations
(130,406) (154,066) (155,435) (196,769) (204,399)
Total other financing (uses)
Net change in fund balance 111,687 (51,546) (26,548) (141,963) (47,046)
415,426 497,048 527,113 500,565 358,602
Fund balance, January 1
$ 527,113$ 445,502$ 500,565$ 358,602$ 311,556
Fund balance, December 31
Net change in 2011 and 2012 fund balance percentage(28.4%)(13.1%)
153
ENVIRONMENTAL RESOURCES FUND
(continued)
Budget Factors:
Revenues.
Revenues are increasing $62,601 and $8,490 in 2011 and 2012 respectively due to a
$.50/quarter increase in the surface water management fee and the inclusion of a $41,900 Solid
Waste Abatement Grant from Dakota County formally accounted for in the Planning
Department.
Personnel services.
The personnel services budget will increase $2,805 and $1,833 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
The commodities budget will decrease by $1,117 in 2011 due to reduced cost of motor fuels
and increase by $15 in 2012.
Other charges and services
Other charges and services budget will increase by $111,716 in 2011 primarily as a result of
hydrologic modeling project for the Vermillion watershed ($97,000) and the professional
engineering services for the final phase of a pond inventory ($15,000). The 2012 budget will
decrease by $96,402 in 2012 with the completion of the Vermillion River WMO hydrologic
modeling project and the pond inventory. Significant projects are as follows:
20112012
Orchard LakeManagement plan implementation $ 5,000 $ 5,000
Orchard LakeAquadic plant assessment 8,500 8,500
Orchard LakeCurly leaf pondweek control 35,000 35,000
Lake MarionManagement plan implementation 15,000 15,000
Lake MarionAquadic plant assessment 4,800 4,800
Valley LakeWater quality improvement 4,500 4,500
Valley LakeAquadic plant control 5,000 5,000
Lee LakeManagement plan and aquadic plant assessment 7,000 7,000
Lee LakeWater quality improvement 5,000 5,000
East WetlandShoreline management 10,000 10,000
East WetlandUpland management 5,000 5,000
East WetlandWater quality improvement 15,000 15,000
East WetlandVegetation and water quality assessment 5,000 5,000
Pond cleaning 60,000 60,000
Total$ 184,800 $ 184,800
Capital outlay
Capital outlay in 2011 is attributable to Microsoft Office upgrades and computer replacements.
Other financing (uses)
The Environmental Resources Fund budget reimburses the General Fund and Special Revenue
Fund for its share of overhead and administrative costs.
154
ECONOMIC DEVELOPMENT FUND
Program Description:
The Economic Development Fund was created to account for the Economic Recovery Grant
received from the State of Minnesota Department of Trade and Economic Development (DTED).
The grant purpose is to provide loans to businesses that are either expanding or building within
the City of Lakeville. Currently the City has no outstanding or pending loan commitments. The
funds are restricted to the certain uses pursuant to the terms and conditions of the Grant. The
fund also has unencumbered balances derived from the administrative fees collected from the
issuance of private activity revenue bond issues.
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:
CITY OF LAKEVILLE, MINNESOTA
Special Revenue - Economic Development Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
Charges for services$ 2,500 $ 10,000 $ 2,500 $ 2,250 $ 2,000
1,125 778 590 621 649
Investment income
3,625 10,778 3,090 2,871 2,649
Total revenues
Expenditures - General Government
10,543 - - - -
Other charges and services
Net change in fund balance (6,918) 10,778 3,090 2,871 2,649
65,896 57,805 58,978 62,068 64,939
Fund balance, January 1
$ 58,978$ 68,583$ 62,068$ 64,939$ 67,588
Fund balance, December 31
Net change in 2011 and 2012 fund balance percentage4.6%4.1%
Budget Factors:
Revenues.
The City receives an annual administrative fee (1/8 of 1%) from All Saints School based on the
debt issuance until year 2017.
Fund balance
The fund has a $20,077 unencumbered balance in 2011.
155
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.
Debt Supported Primarily by Special Assessments
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.
Debt Supported Primarily by Property Taxes
Debt approved by voter referendum, certificates of indebtedness, and capital
improvement bonds. Revenues are provided primarily from general property taxes.
Debt Supported Primarily by State-aid Street Revenue
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 Minnesota
Department of Transportation.
Debt Supported Primarily by Tax Increment
Debt issued to finance construction of public improvements in accordance with
approved tax increment plans. Property taxes received from designated tax increment
financing districts are pledged to the payment of the bonds.
Debt Supported Primarily by Water Revenue
Debt issued to finance the construction of wells, pump houses, towers, and a water
treatment facility. Water connection fees are pledged toward the repayment of the
principal and interest on these bonds.
Debt Supported Primarily by Ice Arena Revenue
Debt issued for the construction of the Lakeville Ames Ice Arena first and second
sheets of ice, spectator seating/locker rooms. Resources include donations from arena
revenues and other sources pledged to the payment of the bonds. The Ice Arena
Revenue Refunding Bonds of 2008 A and the 2005 Capital Dehumidification Lease-
Purchase Agreement are general obligations backed by the full-faith and credit of the
City. The Gross Revenue Recreation Facility Bonds of 1999 are not a general
obligation bond and accordingly not backed by the full-faith and credit of the City.
Debt Supported Primarily by HRA Lease Revenue
The Lakeville Housing and Redevelopment Authority (HRA) issued the Public
Facility Lease Revenue Bonds, Series 2002 A for the construction of Lakeville’s
fourth fire station and the acquisition of a new fire truck. Debt service will be payable
solely from lease payments to be made by the City pursuant to the lease agreement
between the Authority and the City. The HRA issued the Ice Arena Lease Revenue
Bonds of 2006 for the construction of the Hasse single sheet ice arena facility. Debt
service will be payable solely from lease payments to be made by the City and I.S.D
194 pursuant to the lease agreement between the Authority, the City and the school
district. These bonds are not general obligation bonds and, accordingly, are not
backed by the full-faith and credit of the City.
DEBT SERVICE FUNDS
Fund Description
Debt Service Funds are established to account for the accumulations of resources for the
payment of general long-term principal, interest and related costs. Not included is the debt
issued for and serviced by an Enterprise Fund.
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. The five year capital improvement plan is an important planning document
utilized for debt management.
The City has $89.6 million of debt (excluding Liquor Fund debt). The debt service funds have
combined debt service payments of $10.1 million and $11.0 million payable in 2011 and 2012
respectively. The debt is repaid from various revenue sources as shown below:
Revenue source20112012
Property taxes$ 4,959,746 $ 5,699,181
Connection charges 1,781,283 1,527,183
State aid 905,303 908,963
Tax increment 666,079 657,754
Special assessments 456,150 397,843
Liquor Fund 285,320 285,320
Independent School District 194 275,070 281,033
Ice arena contributions 187,608 281,901
Other 89,132 85,327
Total$ 9,605,691 $ 10,124,505
Credit rating
Moodies Investor Service has assigned the City of Lakeville a very favorable Aa1 credit rating.
In its’ most recent analysis of the City of Lakeville, Moodies Investor Service stated “The high
quality general obligation rating reflects the city's modestly growing tax base and diversifying
underlying economy favorably located in the Twin City metro area; healthy financial operations,
characterized by prudent management and ample reserves; and manageable debt position, with
above average debt burden that reflects the community’s rapid growth during the past decade.”
The credit rating report also referenced the City’s debt position by stating “The city's debt
burden has moderated considerably, primarily due to the rapid growth of the tax base, posting a
direct debt burden at an average 1.5%. Moody's expects that the overall debt burden, an above
average 4.6%, will remain high due to ongoing growth pressures for the city as well as
overlapping entities. Principal amortization is average, with 56.0% of principal paid in ten
years. The city does not expect to issue additional debt over the near to medium term. Moody's
expects the city's debt profile to remain manageable over the medium term due to ongoing full
valuation growth and significant non-levy support.”
156
DEBT SERVICE FUNDS
(continued)
Debt obligations
Interest costs have been reduced in recent years with the refinancing of eligible issues. The
following is a summary of the principal and interest debt service payments for the coming years.
G.O. Debt Supported Pimarily by
WaterPublic
Revenue andFacility
SpecialTaxState-aidLeaseIce
YearTaxesAssess.IncrementsRoadsObligationsArena
2011$ 5,501,521$ 1,891,120$ 535,056$ 2,120,068$ 771,324$ 196,926
2012 5,069,303 1,311,642 536,586 1,870,455 778,568 198,607
2013 4,395,733 986,096 518,011 1,878,538 789,723 194,903
2014 4,412,332 641,674 529,004 1,825,353 799,656 195,860
2015 4,431,245 617,488 282,561 1,860,200 808,356 331,493
2016-2020 20,019,410 2,125,766 1,383,953 4,358,558 4,256,469 787,928
2021-2025 20,550,652 - 547,058 81,980 3,938,940 6,536
2026-2030 15,648,693 - - - 3,371,003 -
2031-2032 2,067,384 - - - 1,366,166 -
Total$ 82,096,273$ 7,573,786$ 4,332,229$ 13,995,152$ 16,880,205$ 1,912,253
The City is in compliance with all bond covenants.
Debt Issuance 2011 and 2012
New debt issues proposed for 2011 and 2012 are related to the issuance of Certificates of
Indebtedness for equipment acquisitions, General Obligation Improvement Bonds for the street
thth
reconstruction program and construction of Kenrick Avenue from 175 to 185.
The Certificates are repaid with property tax levies over a 3 year period. The G.O. Improvement
bonds will be repaid with special assessments and property taxes. A summary of the proposed
debt issues are as follows:
Debt IssuePurpose20112012
Certificates of IndebtednessEquipment acquistions$ 665,000$ 600,000
G.O. Improvement BondsStreet reconstruction. 2,675,000 5,365,000
G.O. Improvement BondsKenrick Avenue 2,525,000 -
Total$ 5,865,000$ 5,965,000
157
DEBT SERVICE FUNDS
(continued)
Legal debt limits
Minnesota Statutes §475 limit the amount of general obligation debt which is financed solely
form property tax levies including Equipment Certificates, Capital Improvements Bonds, Street
Reconstruction bonds and debt approved by referendum. The debt can not 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 assessment
bonds, tax increment bonds, utility revenue bonds and revenue bonds. The debt limit
calculations are as follows:
20112012
Included in debt limits
G.O. Equipment Certificates$ 1,575,000$ 1,115,000
G.O. Park Bonds 1,920,000 1,565,000
G.O. Street Reconstruction Bonds 23,175,000 22,130,000
G.O. Capital Improvement Bonds 28,240,000 27,625,000
HRA Public Facility Lease Revenue Bonds 1,880,000 1,775,000
Total debt subject to debt limits 56,790,000 54,210,000
Excluded from debt limits
G.O Improvement Bonds 7,635,000 10,890,000
G.O. State Aid Street Bonds 6,450,000 5,840,000
G.O. Tax Increment Bonds 2,660,000 2,470,000
G.O. Water Revenue Bonds 5,715,000 4,630,000
Ice Arena debt. 10,434,752 10,127,027
Total debt excluded from debt limits 32,894,752 33,957,027
Total Governmental Debt$ 89,684,752$ 88,167,027
Legal Debt Limit (3% of Taxable Market Value)$ 172,098,066$ 160,910,025
Less: G.O. Debt Subject to Limit (56,790,000) (54,210,000)
Legal Debt Margin$ 115,308,066$ 106,700,025
158
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Debt Service Funds
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 6,193,807$ 5,937,995$ 5,937,995$ 4,959,746$ 5,699,181
Tax increment 629,064 666,079 666,079 666,079 657,754
Intergovernmental 833,879 913,538 905,538 905,303 908,963
Charges for services 261,976 319,897 302,879 349,088 418,144
Special assessments 628,327 490,465 490,465 456,150 397,843
Investment income 83,638 98,682 99,412 89,132 85,327
Donations 196,699 95,000 113,590 113,590 144,790
- 50,000 50,000 - -
Miscellaneous
8,827,390 8,571,656 8,565,958 7,539,088 8,312,002
Total revenues
Expenditures - debt service
Principal maturities 6,436,971 7,337,338 7,337,338 7,382,725 6,153,131
Interest on debt 4,157,176 3,945,282 3,945,282 3,633,290 3,612,030
126,570 6,571 70,097 34,006 34,045
Fiscal charges
10,720,717 11,289,191 11,352,717 11,050,021 9,799,206
Total expenditures
Excess (deficiency) of revenues
(1,893,327) (2,717,535) (2,786,759) (3,510,933) (1,487,204)
over expenditures
Other financing sources (uses)
Transfer from other funds 3,131,654 2,048,000 2,155,970 2,066,603 1,812,503
Transfer to other funds (57,700) (60,300) (60,300) (57,600) (59,900)
Refunding bonds issued 5,180,000 2,680,000
Payment on refunded bonds called (7,955,000) (7,955,000)
Premium on bonds issued 116,016 99,322
209,196 - - - -
Discount on bonds issued
8,579,166 (5,967,300) (3,080,008) 2,009,003 1,752,603
Total other financing sources (uses)
Net changes in fund balances 6,685,839 (8,684,835) (5,866,767) (1,501,930) 265,399
9,037,087 18,445,119 15,722,926 9,856,159 8,354,229
Fund balance, January 1
$ 15,722,926$ 9,760,284$ 9,856,159$ 8,354,229$ 8,619,628
Fund balance, December 31
2011/2012 Net change in fund balance percentage(15.2%)3.2%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
159
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Debt Service Funds
For the Year Ending December 31, 2011
(continued on following page)
2011 Proposed Budget
Debt Supported Primarily by
SpecialPropertyTax
AssessmentsTaxesState-aidIncrement
Revenues
General property taxes$ 325,775$ 4,307,300$ -$ 51,601
Tax increment 666,079
Intergovernmental 77,135 828,168
Charges for services
Special assessments 293,728 162,422
Investment income 6,394 33,260 108 7,874
- - - -
Donations
625,897 4,580,117 828,276 725,554
Total revenues
Expenditures - debt service
Principal maturities 1,725,000 3,140,000 610,000 410,000
Interest on debt 166,120 2,361,521 218,168 125,056
2,600 6,500 1,500 6,526
Fiscal charges
1,893,720 5,508,021 829,668 541,582
Total expenditures
Excess (deficiency) of revenues
(1,267,823) (927,904) (1,392) 183,972
over expenditures
Other financing sources (uses)
Transfer from other funds 488,903 100,000
- - - (57,600)
Transfer to other funds
488,903 100,000 - (57,600)
Total other financing sources (uses)
Net changes in fund balances (778,920) (827,904) (1,392) 126,372
1,859,749 5,393,833 5,086 854,361
Fund balance, January 1
$ 1,080,829$ 4,565,929$ 3,694$ 980,733
Fund balance, December 31
2011 Net change in fund balance percentage(41.9%)(15.3%)(27.4%)14.8%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
160
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Debt Service Funds
For the Year Ending December 31, 2011
(continued from previous page)
2011 Proposed Budget
Total
Debt Supported Primarily by
2011
WaterArenaHRA LeaseProposed
RevenueRevenueRevenueBudget
Revenues
General property taxes$ -$ -$ 275,070$ 4,959,746
Tax increment 666,079
Intergovernmental 905,303
Charges for services 74,018 275,070 349,088
Special assessments 456,150
Investment income 1,651 39,845 89,132
- 113,590 - 113,590
Donations
- 189,259 589,985 7,539,088
Total revenues
Expenditures - debt service
Principal maturities 1,085,000 132,725 280,000 7,382,725
Interest on debt 206,900 64,201 491,324 3,633,290
480 500 15,900 34,006
Fiscal charges
1,292,380 197,426 787,224 11,050,021
Total expenditures
Excess (deficiency) of revenues
(1,292,380) (8,167) (197,239) (3,510,933)
over expenditures
Other financing sources (uses)
Transfer from other funds 1,292,380 185,320 2,066,603
- - - (57,600)
Transfer to other funds
1,292,380 - 185,320 2,009,003
Total other financing sources (uses)
Net changes in fund balances - (8,167) (11,919) (1,501,930)
4,217 212,409 1,526,504 9,856,159
Fund balance, January 1
$ 4,217$ 204,242$ 1,514,585$ 8,354,229
Fund balance, December 31
2011 Net change in fund balance percentage0.0%(3.8%)(0.8%)(15.2%)
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
161
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Debt Service Funds
For the Year Ending December 31, 2012
(continued on following page)
2012 Estimated Budget
Debt Supported Primarily by
SpecialPropertyTax
AssessmentsTaxesState-aidIncrement
Revenues
General property taxes$ 1,076,584$ 4,289,963$ -$ 51,601
Tax increment 657,754
Intergovernmental 76,308 832,655
Charges for services
Special assessments 242,877 154,966
Investment income 6,151 28,780 108 8,825
- - - -
Donations
1,325,612 4,550,017 832,763 718,180
Total revenues
Expenditures - debt service
Principal maturities 985,000 2,800,000 635,000 425,000
Interest on debt 326,642 2,269,303 197,655 111,586
3,900 6,110 1,500 5,955
Fiscal charges
1,315,542 5,075,413 834,155 542,541
Total expenditures
Excess (deficiency) of revenues
10,070 (525,396) (1,392) 175,639
over expenditures
Other financing sources (uses)
Transfer from other funds 488,903 100,000
- - - (59,900)
Transfer to other funds
488,903 100,000 - (59,900)
Total other financing sources (uses)
Net changes in fund balances 498,973 (425,396) (1,392) 115,739
1,080,829 4,565,929 3,694 980,733
Fund balance, January 1
$ 1,579,802$ 4,140,533$ 2,302$ 1,096,472
Fund balance, December 31
2012 Net change in fund balance percentage46.2%(9.3%)(37.7%)11.8%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
162
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Debt Service Funds
For the Year Ending December 31, 2012
(continued from previous page)
2012 Estimated Budget
Total
Debt Supported Primarily by
2012
WaterArenaHRA LeaseEstimated
RevenueRevenueRevenueBudget
Revenues
General property taxes$ -$ -$ 281,033$ 5,699,181
Tax increment 657,754
Intergovernmental 908,963
Charges for services 137,111 281,033 418,144
Special assessments 397,843
Investment income 2,012 39,451 85,327
- 144,790 - 144,790
Donations
- 283,913 601,517 8,312,002
Total revenues
Expenditures - debt service
Principal maturities 870,000 138,131 300,000 6,153,131
Interest on debt 167,800 60,476 478,568 3,612,030
480 400 15,700 34,045
Fiscal charges
1,038,280 199,007 794,268 9,799,206
Total expenditures
Excess (deficiency) of revenues
(1,038,280) 84,906 (192,751) (1,487,204)
over expenditures
Other financing sources (uses)
Transfer from other funds 1,038,280 185,320 1,812,503
- - - (59,900)
Transfer to other funds
1,038,280 - 185,320 1,752,603
Total other financing sources (uses)
Net changes in fund balances - 84,906 (7,431) 265,399
4,217 204,242 1,514,585 8,354,229
Fund balance, January 1
$ 4,217$ 289,148$ 1,507,154$ 8,619,628
Fund balance, December 31
2012 Net change in fund balance percentage0.0%41.6%(0.5%)3.2%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following this combining schedule.
CITY OF LAKEVILLE, MINNESOTA
Debt Service Fund
Fund Balance Discussion
163
Debt Supported Primarily by Special Assessments
will experience a ($778,920) or
(41.9%) decrease and a $498,973 or 46.2% increase in 2011 and 2012 respectively. The
beginning fund balance of $1,859,749 and $1,080,829 for 2011 and 2012 respectively
when combined with the collection of special assessments and connection charges in
previous years is adequate and sufficient to meet debt service obligations.
Debt Supported Primarily by Property Taxes
will decrease by ($827,904) or (15.3%)
and ($425,396) or (9.3%) respectively in 2011 and 2012 respectively. The beginning
fund balances of $5,393,833 and $4,565,929 in 2011 and 2012 respectively are adequate
and sufficient to meet debt service obligations.
Debt Supported Primarily by State-aid Street Revenue
the fund balance will decrease
by $1,392 in each of the next two years as a result of fiscal charges exceeding interest on
investments. The fund balance is minor and will be used in the final years of this bond
issue.
Debt Supported Primarily by Tax Increment
the fund balance will increase by
$126,372 or 14.8% and $115,739 or 11.8% in 2011 and 2012 respectively. The
beginning fund balance of $854,361 and $980,733 for 2011 and 2012 respectively are an
important revenue source for meeting future debt service obligations
Debt Supported Primarily by Water Revenue
will have no change in fund balance in
the coming years because transfers from the Capital Projects – Water Fund and Water
Enterprise Fund are adequate and sufficient to meet debt service obligations.
Debt Supported Primarily by Ice Arena Revenue
will decrease by ($8,167) or (3.8%)
in 2011 and increase by $84,906 or 41.6% in 2012 due to the debt service structure.
Revenue commitments from the Lakeville Arena and Lakeville Hockey Association are
adequate and sufficient to meet debt obligations. The ending fund balance of $204,242
and $289,148 for 2011 and 2012 respectively are an important revenue source for
meeting future debt service obligations.
Debt Supported Primarily by HRA Lease Revenue
will decrease by 0.8% and 0.5%
due to interest on investments. The fund balance decrease is minor and funded from
excess investment income from prior years. The ending fund balance of $1,514,585 and
$1,507,154 for 2011 and 2012 respectively include reserves as required by the bond
covenants and are an important revenue source for meeting future debt service
obligations.
164
CITY OF LAKEVILLE, MINNESOTA
Debt Service - Special Assessments Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 761,850$ 857,601$ 857,601$ 325,775$ 1,076,584
Special assessments 338,842 320,588 320,588 293,728 242,877
23,447 11,241 11,241 6,394 6,151
Investment income
1,124,139 1,189,430 1,189,430 625,897 1,325,612
Total revenues
Expenditures - debt service
Principal maturities 1,890,000 1,795,000 1,795,000 1,725,000 985,000
Interest on debt 414,660 292,290 292,290 166,120 326,642
60,631 - 2,600 2,600 3,900
Fiscal charges
2,365,291 2,087,290 2,089,890 1,893,720 1,315,542
Total expenditures
Excess (deficiency) of revenues
(1,241,152) (897,860) (900,460) (1,267,823) 10,070
over expenditures
Other financing sources (uses)
Transfer from:
General Fund 107,490
Capital Projects:
Tax Increment Fund 10,905 21,810 21,810 21,810 21,810
Storm Sewer Fund 331,000 331,000 331,000 331,000 331,000
Water Fund 496,093 136,093 136,093 136,093 136,093
Sanitary Sewer Fund 463,647
Improvement Construction Fund 12,469
Refunding bonds issued 4,250,000
Payment on refunded bonds called (4,285,000) (4,285,000)
91,868 - - - -
Premium on bonds issued
5,655,982 (3,796,097) (3,688,607) 488,903 488,903
Total other financing sources (uses)
Net changes in fund balances 4,414,830 (4,693,957) (4,589,067) (778,920) 498,973
2,033,986 6,431,139 6,448,816 1,859,749 1,080,829
Fund balance, January 1
$ 6,448,816$ 1,737,182$ 1,859,749$ 1,080,829$ 1,579,802
Fund balance, December 31
2011/2012 Net change in fund balance percentage(41.9%)46.2%
165
CITY OF LAKEVILLE, MINNESOTA
Debt Service - Property Taxes Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 5,095,794$ 4,757,504$ 4,757,504$ 4,307,300$ 4,289,963
Federal Build America Bonds credit$ 45,384 45,384 77,135 76,308
Special assessments 289,485 169,877 169,877 162,422 154,966
Investment income 53,233 39,279 39,278 33,260 28,780
- 50,000 50,000 - -
Miscellaneous
5,438,512 5,062,044 5,062,043 4,580,117 4,550,017
Total revenues
Expenditures - debt service
Principal maturities 2,385,000 3,195,000 3,195,000 3,140,000 2,800,000
Interest on debt 2,349,400 2,383,003 2,383,003 2,361,521 2,269,303
6,710 - 6,500 6,500 6,110
Fiscal charges
4,741,110 5,578,003 5,584,503 5,508,021 5,075,413
Total expenditures
Excess (deficiency) of revenues
697,402 (515,959) (522,460) (927,904) (525,396)
over expenditures
Other financing sources (uses)
Transfer from:
Capital Projects:
Police Stn. and CMF Const. Fund 238,000
Improvement Construction Fund
100,000 100,000 100,000 100,000 100,000
Enterprise - Liquor Fund
Total other financing sources (uses) 338,000 100,000 100,000 100,000 100,000
Net changes in fund balances 1,035,402 (415,959) (422,460) (827,904) (425,396)
4,780,891 5,727,755 5,816,293 5,393,833 4,565,929
Fund balance, January 1
$ 5,816,293$ 5,311,796$ 5,393,833$ 4,565,929$ 4,140,533
Fund balance, December 31
2011/2012 Net change in fund balance percentage(15.3%)(9.3%)
166
CITY OF LAKEVILLE, MINNESOTA
Debt Service - State-aid Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
Intergovernmental State aid$ 833,879$ 868,154 $ 860,154 $ 828,168$ 832,655
36 106 106 108 108
Investment income
833,915 868,260 860,260 828,276 832,763
Total revenues
Expenditures - debt service
Principal maturities 500,000 575,000 575,000 610,000 635,000
Interest on debt 332,949 293,154 293,154 218,168 197,655
10,514 - 37,246 1,500 1,500
Fiscal charges
843,463 868,154 905,400 829,668 834,155
Total expenditures
Excess (deficiency) of revenues
(9,548) 106 (45,140) (1,392) (1,392)
over expenditures
Other financing sources (uses)
Refunding bonds issued 2,680,000
Payment on refunded bonds called (2,730,000)(2,730,000)
- - 99,322 - -
Premium on bonds issued
- (2,730,000) 49,322 - -
Total other financing sources (uses)
Net changes in fund balances (9,548) (2,729,894) 4,182 (1,392) (1,392)
10,452 2,740,556 904 5,086 3,694
Fund balance, January 1
$ 904$ 10,662 $ 5,086 $ 3,694$ 2,302
Fund balance, December 31
167
CITY OF LAKEVILLE, MINNESOTA
Debt Service - Tax Increment Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 74,575$ 51,601 $ 51,601 $ 51,601$ 51,601
Tax increment 629,064 666,079 666,079 666,079 657,754
4,386 6,329 6,602 7,874 8,825
Investment income
708,025 724,009 724,282 725,554 718,180
Total revenues
Expenditures - debt service
Principal maturities 360,000 375,000 375,000 410,000 425,000
Interest on debt 188,582 157,413 157,413 125,056 111,586
30,919 6,571 6,571 6,526 5,955
Fiscal charges
579,501 538,984 538,984 541,582 542,541
Total expenditures
Excess (deficiency) of revenues
128,524 185,025 185,298 183,972 175,639
over expenditures
Other financing sources (uses)
Transfer to:
Capital Projects:
Storm Sewer Fund (57,700) (60,300) (60,300) (57,600) (59,900)
Refunding bonds issued 930,000
Payment on refunded bonds called (940,000) (940,000)
Premium on bonds issued 24,148
209,196 - - - -
Disposal of capital assets
1,105,644 (1,000,300) (1,000,300) (57,600) (59,900)
Total other financing sources (uses)
Net changes in fund balances 1,234,168 (815,275) (815,002) 126,372 115,739
435,195 1,714,335 1,669,363 854,361 980,733
Fund balance, January 1
$ 1,669,363$ 899,060 $ 854,361 $ 980,733$ 1,096,472
Fund balance, December 31
2011/2012 Net change in fund balance percentage14.8%11.8%
168
CITY OF LAKEVILLE, MINNESOTA
Debt Service - Water Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Expenditures - debt service
Principal maturities 1,000,000 1,020,000 1,020,000 1,085,000 870,000
Interest on debt 289,400 249,000 249,000 206,900 167,800
480 - 480 480 480
Fiscal charges
1,289,880 1,269,000 1,269,480 1,292,380 1,038,280
Total expenditures
Excess (deficiency) of revenues
over expenditures (1,289,880) (1,269,000) (1,269,480) (1,292,380) (1,038,280)
Other financing sources (uses)
Transfer from:
1,289,880 1,269,000 1,269,480 1,292,380 1,038,280
Capital Projects - Water Fund
Net changes in fund balances - - - - -
4,217 4,217 4,217 4,217 4,217
Fund balance, January 1
$ 4,217 $ 4,217 $ 4,217 $ 4,217 $ 4,217
Fund balance, December 31
2011/2012 Net change in fund balance percentage0.0%0.0%
169
CITY OF LAKEVILLE, MINNESOTA
Debt Service - Arena Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
Charges for services$ - $ 48,608$ 31,590$ 74,018$ 137,111
Investment income 2,536 1,496 1,953 1,651 2,012
196,699 95,000 113,590 113,590 144,790
Donations
199,235 145,104 147,133 189,259 283,913
Total revenues
Expenditures - debt service
Principal maturities 71,971 122,338 122,338 132,725 138,131
Interest on debt 68,664 67,414 67,414 64,201 60,476
666 - 600 500 400
Fiscal charges
141,301 189,752 190,352 197,426 199,007
Total expenditures
Excess (deficiency) of revenues
over expenditures 57,934 (44,648) (43,219) (8,167) 84,906
197,694 241,789 255,628 212,409 204,242
Fund balance, January 1
$ 255,628$ 197,141$ 212,409$ 204,242$ 289,148
Fund balance, December 31
2011/2012 Net change in fund balance percentage(3.8%)41.6%
170
CITY OF LAKEVILLE, MINNESOTA
Debt Service - HRA Lease Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 261,588$ 271,289$ 271,289$ 275,070$ 281,033
Charges for services 261,976 271,289 271,289 275,070 281,033
- 40,231 40,232 39,845 39,451
Investment income
523,564 582,809 582,810 589,985 601,517
Total revenues
Expenditures - debt service
Principal maturities 230,000 255,000 255,000 280,000 300,000
Interest on debt 513,521 503,008 503,008 491,324 478,568
16,650 - 16,100 15,900 15,700
Fiscal charges
760,171 758,008 774,108 787,224 794,268
Total expenditures
Excess (deficiency) of revenues
over expenditures (236,607) (175,199) (191,298) (197,239) (192,751)
Other financing sources (uses)
Transfer from:
189,660 190,097 190,097 185,320 185,320
Enterprise - Liquor Fund
Net changes in fund balances (46,947) 14,898 (1,201) (11,919) (7,431)
1,574,652 1,585,328 1,527,705 1,526,504 1,514,585
Fund balance, January 1
$ 1,527,705$ 1,600,226$ 1,526,504$ 1,514,585$ 1,507,154
Fund balance, December 31
2011/2012 Net change in fund balance percentage(0.8%)(0.5%)
171
CITY OF LAKEVILLE, MINNESOTA
Combined Schedule of Governmental Debt Service Requirements
As of December 31, 2010
Due in 2011
Maturity
Debt DateOutstandingPrincipalInterest
G.O. Equipment Certificates of 2006 AFeb-01-11$ 425,000$ 425,000$ 8,500
G.O. Equipment Certificates of 2007 EFeb-01-12 880,000 430,000 28,263
G.O. Equipment Certificates of 2008 AFeb-01-11 270,000 270,000 3,375
G.O. Park Refunding Bonds of 2003 BFeb-01-15 1,920,000 355,000 62,519
G.O. Street Reconstruction Bonds of 2003 AFeb-01-26 12,715,000 640,000 510,483
G.O. Capital Improvement Bonds of 2004 AFeb-01-30 13,880,000 215,000 616,175
G.O. Street Reconstruction Bonds of 2005 AFeb-01-26 2,805,000 130,000 108,600
G.O. Capital Improvement Bonds of 2007 DFeb-01-32 14,360,000 400,000 693,863
G.O. Street Reconstruction Bonds of 2007 HFeb-01-28 2,710,000 105,000 109,358
4,945,000 170,000 220,385
G.O. Taxable Street Reconstruction Bonds of 2009 AFeb-01-30
54,910,000 3,140,000 2,361,521
Total debt supported primarily by property taxes
G.O. Improvement Refunding Bonds of 2007 BFeb-01-16 1,335,000 380,000 44,369
G.O. Improvement Bonds of 2007 FFeb-01-18 685,000 330,000 20,913
G.O. Improvement Bonds of 2008 AFeb-01-19 435,000 190,000 10,625
4,250,000 825,000 90,213
G.O. Improvement Refunding Bonds of 2009 BFeb-01-20
6,705,000 1,725,000 166,120
Total debt supported primarily by special assessments
G.O. State Aid Street Bonds of 2001 CApr-01-21 690,000 50,000 32,068
G.O. State Aid Street Bonds of 2007 GApr-01-18 3,080,000 335,000 116,500
2,680,000 225,000 69,600
G.O. State Aid Street Refunding Bonds of 2010 AApr-01-20
6,450,000 610,000 218,168
Total debt supported by state aid street revenue
G.O. Tax Increment Refunding Bonds of 2007 AFeb-01-22 2,155,000 70,000 85,961
G.O. Taxable Tax Increment Refund Bonds of 2007 CFeb-01-14 505,000 120,000 22,695
930,000 220,000 16,400
G.O. Improvement Refunding Bonds of 2009 BFeb-01-14
3,590,000 410,000 125,056
Total debt supported primarily by tax increment
5,715,000 1,085,000 206,900
G.O. Water Revenue Refunding Bonds of 2004 BFeb-01-16
G.O. Ice Arena Revenue Refunding Bonds of 2008 AFeb-01-15 660,000 125,000 17,708
Gross Revenue Recreation Facility Bonds of 1999Aug-01-19 770,000 - 41,145
104,752 7,725 5,348
Ice Arena Capital Equipment Lease of 2005Feb-01-21
1,534,752 132,725 64,201
Total debt supported primarily by ice arena revenue
HRA Public Facility Lease Revenue Bonds of 2002 AFeb-01-23 1,880,000 105,000 93,393
8,900,000 175,000 397,931
HRA Ice Arena Lease Revenue Bonds of 2006Feb-01-32
10,780,000 280,000 491,324
Total debt supported primarily by lease revenue
$ 89,684,752$ 7,382,725$ 3,633,290
Total Governmental Debt
172
CITY OF LAKEVILLE, MINNESOTA
Combined Schedule of Governmental Debt Service Requirements
As of December 31, 2011
Due in 2012
Maturity
Debt DateOutstandingPrincipalInterest
G.O. Equipment Certificates of 2007 EFeb-01-12 450,000$ 450,000$ 9,563
G.O. Equipment Certificates of 2011 XFeb-01-14 665,000 215,000 13,263
G.O. Park Refunding Bonds of 2003 BFeb-01-15 1,565,000 375,000 49,744
G.O. Street Reconstruction Bonds of 2003 AFeb-01-26 12,075,000 660,000 487,733
G.O. Capital Improvement Bonds of 2004 AFeb-01-30 13,665,000 245,000 608,394
G.O. Street Reconstruction Bonds of 2005 AFeb-01-26 2,675,000 135,000 103,499
G.O. Capital Improvement Bonds of 2007 DFeb-01-32 13,960,000 415,000 673,488
G.O. Street Reconstruction Bonds of 2007 HFeb-01-28 2,605,000 110,000 105,595
4,775,000 195,000 218,024
G.O. Taxable Street Reconstruction Bonds of 2009 AFeb-01-30
52,435,000 2,800,000 2,269,303
Total debt supported primarily by property taxes
G.O. Improvement Refunding Bonds of 2007 BFeb-01-16 955,000 380,000 29,644
G.O. Improvement Bonds of 2007 FFeb-01-18 355,000 55,000 13,213
G.O. Improvement Bonds of 2008 AFeb-01-19 245,000 35,000 7,778
G.O. Improvement Refunding Bonds of 2009 BFeb-01-20 3,425,000 515,000 76,813
G.O. Improvement Bonds of 2011 XFeb-01-14 2,675,000 - 102,470
2,525,000 - 96,724
G.O. Improvement Bonds of 2011 XFeb-01-32
10,180,000 985,000 326,642
Total debt supported primarily by special assessments
G.O. State Aid Street Bonds of 2001 CApr-01-21 640,000 50,000 29,805
G.O. State Aid Street Bonds of 2007 GApr-01-18 2,745,000 345,000 102,900
2,455,000 240,000 64,950
G.O. State Aid Street Refunding Bonds of 2010 AApr-01-20
5,840,000 635,000 197,655
Total debt supported by state aid street revenue
G.O. Tax Increment Refunding Bonds of 2007 AFeb-01-22 2,085,000 70,000 83,161
G.O. Taxable Tax Increment Refund Bonds of 2007 CFeb-01-14 385,000 120,000 16,575
710,000 235,000 11,850
G.O. Improvement Refunding Bonds of 2009 BFeb-01-14
3,180,000 425,000 111,586
Total debt supported primarily by tax increment
4,630,000 870,000 167,800
G.O. Water Revenue Refunding Bonds of 2004 BFeb-01-16
G.O. Ice Arena Revenue Refunding Bonds of 2008 AFeb-01-15 535,000 130,000 14,390
Gross Revenue Recreation Facility Bonds of 1999Aug-01-19 770,000 - 41,145
97,027 8,131 4,941
Ice Arena Capital Equipment Lease of 2005Feb-01-21
1,402,027 138,131 60,476
Total debt supported primarily by ice arena revenue
HRA Public Facility Lease Revenue Bonds of 2002 AFeb-01-23 1,775,000 110,000 88,393
8,725,000 190,000 390,175
HRA Ice Arena Lease Revenue Bonds of 2006Feb-01-32
10,500,000 300,000 478,568
Total debt supported primarily by lease revenue
$ 88,167,027$ 6,153,131$ 3,612,030
Total Governmental Debt
173
Capital Project Funds
Capital Project Funds account for financial resources appropriated to the acquisition of capital
facilities and 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, seal coating 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.
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.
Park Dedication Fund
This fund accounts for park development fees received from land developers. The
expenditures consist of acquiring and developing City parks and trails.
Trail Improvement Fund
This fund accounts for the long term maintenance, repairs and replacement of the City
trails. The primary revenue source is a transfer from the General Fund.
(Continued)
Capital Project Funds
Storm Sewer Fund
This fund accounts for fees and area charges to land developers for construction of trunk
storm sewer systems.
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 provide the debt service
to bonds issued to finance the construction of the City’s water treatment facility and other
trunk 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 trunk systems.
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.
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects Funds
For the Year Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes 1,195,722$ 1,231,594 1,231,594 2,101,335 1,571,461
Tax increment 222,722 221,515 202,084 202,084 202,084
Intergovernmental 1,334,241 540,314 562,075 67,678 17,300
Charges for services 1,177,405 1,761,363 1,155,266 1,539,157 2,700,426
Special assessments 141,297 53,340 35,000 27,000 27,000
Investment income 178,352 43,359 87,793 58,183 53,508
Donations 80,000 - 2,500 - -
275,938 754,044 886,208 292,080 669,454
Miscellaneous
4,605,677 4,605,529 4,162,520 4,287,517 5,241,233
Total revenues
Expenditures - Capital outlay
General government 516,616 1,166,219 302,959 531,345 405,734
Public safety
Police 499,165 190,838 290,854 946,759 547,177
Fire 3,142 428,933 523,489 333,839 35,564
Public works 5,309,252 2,626,472 5,590,988 8,789,510 10,093,728
737,276 426,163 656,221 922,183 484,666
Parks and recreation
7,065,451 4,838,625 7,364,511 11,523,636 11,566,869
Total expenditures
Excess (deficiency) of revenues
(2,459,774) (233,096) (3,201,991) (7,236,119) (6,325,636)
over expenditures
Other financing sources (uses)
Transfer from other funds 1,521,347 204,922 2,619,308 1,942,929 459,900
Transfer to other funds (2,878,224) (1,933,980) (1,757,903) (1,781,283) (1,527,183)
4,945,000 - - 5,905,000 5,965,000
Issuance of debt
3,588,123 (1,729,058) 861,405 6,066,646 4,897,717
Total other financing sources (uses)
Net changes in fund balances 1,128,349 (1,962,154) (2,340,586) (1,169,473) (1,427,919)
11,506,688 7,638,750 12,635,037 10,399,692 9,230,219
Fund balance, January 1
$ 12,635,037$ 5,676,596$ 10,294,451$ 9,230,219$ 7,802,300
Fund balance, December 31
2011/2012 Net change in fund balance percentage(11.2%)(15.5%)
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
174
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects Funds
For the Year Ending December 31, 2011
(continued on following page)
2011 Proposed Budget
MunicipalPavementImprovementPark
State AidManagementConstructionBuildingEquipmentDedication
Revenues
General property taxes$ - $ 1,546,958$ - $ - $ 554,377$ -
Tax increment
Intergovernmental 12,000 39,628
Charges for services 474,700
Special assessments
Investment income 8,575 3,500 2,350 3,675 5,000 3,000
- - - - 73,625 18,500
Miscellaneous
8,575 1,550,458 2,350 15,675 672,630 496,200
Total revenues
Expenditures - Capital outlay
General government 226,456 109,092
Public safety 230,431
Police 716,328
Fire 333,839
Public works 275,282 1,646,186 5,385,000 72,900 974,601
- - - 2,200 376,097 384,000
Parks and recreation
275,282 1,646,186 5,385,000 531,987 2,509,957 384,000
Total expenditures
Excess (deficiency) of revenues
(266,707) (95,728) (5,382,650) (516,312) (1,837,327) 112,200
over expenditures
Other financing sources (uses)
Transfer from other funds 685,329
Transfer to other funds
- - 5,250,000 - 655,000 -
Issuance of debt
- - 5,250,000 - 1,340,329 -
Total other financing sources (uses)
Net changes in fund balances (266,707) (95,728) (132,650) (516,312) (496,998) 112,200
2,003,684 903,875 612,127 1,255,514 1,385,709 695,970
Fund balance, January 1
$ 1,736,977$ 808,147$ 479,477$ 739,202$ 888,711$ 808,170
Fund balance, December 31
2011 Net change in fund balance
percentage(13.3%)(10.6%)(21.7%)(41.1%)(35.9%)16.1%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
175
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects Funds
For the Year Ending December 31, 2011
(continued from previous page)
2011 Proposed Budget
TrailStormSanitaryTax
ImprovementSewerWaterSewerIncrementTotal
Revenues
General property taxes$ - $ - $ -$ - $ -$ 2,101,335
Tax increment 202,084 202,084
Intergovernmental 16,050 67,678
Charges for services 293,082 643,500 127,875 1,539,157
Special assessments 15,000 5,000 7,000 27,000
Investment income 12,000 300 (2,901) 22,679 5 58,183
- - 199,955 - - 292,080
Miscellaneous
12,000 308,382 845,554 157,554 218,139 4,287,517
Total revenues
Expenditures - Capital outlay
General government 195,797 531,345
Public safety 230,431
Police 716,328
Fire 333,839
Public works - 146,541 216,500 72,500 8,789,510
159,886 - - - - 922,183
Parks and recreation
159,886 146,541 216,500 72,500 195,797 11,523,636
Total expenditures
Excess (deficiency) of revenues
(147,886) 161,841 629,054 85,054 22,342 (7,236,119)
over expenditures
Other financing sources (uses)
Transfer from other funds 57,600 1,200,000 1,942,929
Transfer to other funds (331,000) (1,428,473) (21,810) (1,781,283)
- - - - - 5,905,000
Issuance of debt
- (273,400) (228,473) - (21,810) 6,066,646
Total other financing sources (uses)
Net changes in fund balances (147,886) (111,559) 400,581 85,054 532 (1,169,473)
1,400,000 183,793 (290,562) 2,236,742 12,840 10,399,692
Fund balance, January 1
$ 1,252,114$ 72,234$ 110,019$ 2,321,796$ 13,372 $ 9,230,219
Fund balance, December 31
2011 Net change in fund balance
percentage(10.6%)(60.7%)(137.9%)3.8%4.1%(11.2%)
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
176
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects Funds
For the Year Ending December 31, 2012
(continued on following page)
2012 Proposed Budget
MunicipalPavementImprovementPark
State AidManagementConstructionBuildingEquipmentDedication
Revenues
General property taxes$ -$ 1,198,487$ - $ - $ 372,974$ -
Tax increment
Intergovernmental 1,250
Charges for services 1,026,330
Special assessments
Investment income 7,000 3,500 1,000 3,250 4,350
- - - 300,000 149,000 18,500
Miscellaneous
7,000 1,201,987 1,250 301,000 525,224 1,049,180
Total revenues
Expenditures - Capital outlay
General government 23,000 186,937
Public safety 309,600
Police 237,577
Fire 35,564
Public works 1,154,600 1,239,633 5,590,000 435,000 802,297
- - - - 128,210 198,075
Parks and recreation
1,154,600 1,239,633 5,590,000 767,600 1,390,585 198,075
Total expenditures
Excess (deficiency) of revenues
(1,147,600) (37,646) (5,588,750) (466,600) (865,361) 851,105
over expenditures
Other financing sources (uses)
Transfer from other funds
Transfer to other funds
- - 5,365,000 - 600,000 -
Issuance of debt
- - 5,365,000 - 600,000 -
Total other financing sources (uses)
Net changes in fund balances (1,147,600) (37,646) (223,750) (466,600) (265,361) 851,105
1,736,977 808,147 479,477 739,202 888,711 808,170
Fund balance, January 1
$ 589,377$ 770,501$ 255,727$ 272,602$ 623,350$ 1,659,275
Fund balance, December 31
2012 Net change in fund balance
percentage(66.1%)(4.7%)(46.7%)(63.1%)(29.9%)105.3%
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
177
CITY OF LAKEVILLE, MINNESOTA
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Capital Projects Funds
For the Year Ending December 31, 2012
(continued from previous page)
2012 Proposed Budget
TrailStormSanitaryTax
ImprovementSewerWaterSewerIncrementTotal
Revenues
General property taxes$ -$ - $ -$ - $ -$ 1,571,461
Tax increment 202,084 202,084
Intergovernmental 16,050 17,300
Charges for services 684,596 819,000 170,500 2,700,426
Special assessments 15,000 5,000 7,000 27,000
Investment income 10,000 700 1,110 22,593 5 53,508
- - 201,954 - - 669,454
Miscellaneous
10,000 700,296 1,027,064 200,093 218,139 5,241,233
Total revenues
Expenditures - Capital outlay
General government 195,797 405,734
Public safety 309,600
Police 237,577
Fire 35,564
Public works 342,298 227,400 302,500 10,093,728
158,381 - - - - 484,666
Parks and recreation
158,381 342,298 227,400 302,500 195,797 11,566,869
Total expenditures
Excess (deficiency) of revenues
(148,381) 357,998 799,664 (102,407) 22,342 (6,325,636)
over expenditures
Other financing sources (uses)
Transfer from other funds 59,900 400,000 459,900
Transfer to other funds (331,000) (1,174,373) (21,810) (1,527,183)
- - - - - 5,965,000
Issuance of debt
- (271,100) (774,373) - (21,810) 4,897,717
Total other financing sources (uses)
Net changes in fund balances (148,381) 86,898 25,291 (102,407) 532 (1,427,919)
1,252,114 72,234 110,019 2,321,796 13,372 9,230,219
Fund balance, January 1
$ 1,103,733 $ 159,132$ 135,310$ 2,219,389$ 13,904 $ 7,802,300
Fund balance, December 31
2012 Net change in fund balance
percentage(11.9%)120.3%23.0%(4.4%)4.0%(15.5%)
For a complete discussion of changes in fund balances,
see the fund balance discussion on the page following the combining schedules.
Municipal State Aid Street Fund
The balance will decrease by $266,707 and
$1,147,600 in 2011 and 2012 respectively as a result of the Ipava Avenue overlay from
178
CITY OF LAKEVILLE, MINNESOTA
Capital Project Funds
Fund Balance Discussion
ndth
162 to 165 street, Dodd Boulevard project and the City share of cost for the Cedar
Avenue project. The ending fund balance ($589,377) is appropriated to future projects
identified in the 2011 – 2015 Capital Improvement Plan
Pavement Management Fund
The balance will be $ 667,773 and $ 630,127 for 2011
and 2012. The fund balance provides the working capital until such time as the receipt of
its primary revenue source – property taxes. The fund balance is 40% to 50% of the
expenditures. The fund balance is consistent with the City’s Fund Balance Policy and the
Minnesota State Auditors Statement of Position regarding fund balances.
Improvement Construction Fund
The balance decreased by $132,650 and $ 223,750 in
2011 and 2012 respectively as a result of City share of cost for the County Road 50 and
60 round-about. The ending fund balance ($255,727) is appropriated to projects
identified in the 2011 – 2015 Capital Improvement Plan.
Building Fund
The balance will decrease by $516,312 and $466,600 in 2011 and 2012.
The ending fund balance ($272,602) is appropriated to projects identified in the 2011 –
2015 Capital Improvement Plan.
Equipment Fund balance
The will decrease by $654,268 and $265,361 in 2011 and
2012 respectively. The ending fund balance ($463,580) will be appropriated to future
equipment acquisitions to minimize future debt and tax levies.
Park Dedication Fund
The balance will increase by $112,200 and $851,105 in 2011 and
2012 in anticipation of increased development activity. The ending fund balance ($1.6
million) will be appropriated to projects indentified in the 2011 – 2012 Capital
Improvement Plan.
Trail Improvement Fund
The balance will decrease by $147,886 and $148,381 as a
result of the trail maintenance and replacement program. The ending fund balance ($1.1
million) is appropriated to projects indentified in the 2011 – 2015 Capital Improvement
Plan in order to minimize future tax levies.
(continued)
Storm Sewer Fund
The balance will decrease by $111,559 and increase by $86,898 in
2011 and 2012 respectively. The ending fund balance ($196,285) is appropriated to
future storm sewer project improvements.
179
CITY OF LAKEVILLE, MINNESOTA
Capital Project Funds
Fund Balance Discussion
(continued)
Water Fund
The balance will increase by $401,061 and $136,750 in 2011 and 2012
respectively. The ending fund balance ($136,750) is appropriated to future debt service
payments and projects identified in the 2011 – 2012 Capital Improvement Plan.
Sanitary Sewer Fund
The balance will increase by $85,054 and decrease by $102,407 in
2011 and 2012 respectively. The ending fund balance ($2.2 million) is appropriated to
projects identified in the 2011 – 2015 Capital Improvement Plan and the Comprehensive
Sanitary Sewer Plan.
Tax Increment Fund
The will have no significant balance in 2011 and 2012. The
ending fund balance (13,904) is appropriated to meet tax increment obligations.
180
MUNICIPAL STATE AID STREET FUND
Fund Description
Municipal State Aid Street Fund
The accounts for an annual allotment from the State of
Minnesota Municipal State Aid Street Construction account.
ndth
Appropriations are proposed in 2011 for an Ipava Avenue overlay from 162 Street to 165
Street ($85,282), Dodd Boulevard project ($120,000) and a portion of the Cedar Avenue project
($70,000). The 2012 estimated budget includes funding for City share of the Dodd Boulevard
project.
The proposed projects have no direct impact on the operating budget.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Municipal State Aid Street Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
$ 44,678 $ - $ 12,750 $ 8,575 $ 7,000
Investment income
Expenditures - Capital outlay
41,719 1,165,332 596,795 275,282 1,154,600
Public works
Excess (deficiency) of revenues
over expenditures 2,959 (1,165,332) (584,045) (266,707) (1,147,600)
Other financing sources (uses)
- 760,000 - - -
Issuance of debt
Net change in fund balance 2,959 (405,332) (584,045) (266,707) (1,147,600)
2,584,770 2,584,770 2,587,729 2,003,684 1,736,977
Fund balance, January 1
$ 2,587,729$ 2,179,438$ 2,003,684$ 1,736,977$ 589,377
Fund balance, December 31
2011/2012 Net change in fund balance percentage(13.3%)(66.1%)
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Municipal State Aid Street Fund
Schedule of Capital Outlay
20112012201320142015
Projects
Overlay Ipava: 162nd - 165th$ 85,282$ -$ -$ -$ -
Cedar Ave.: 3rd Lane - 147th - 179th 70,000 558,000
Dodd Blvd.: Hayes Ave - Cedar Ave. 120,000 393,700
- 1,154,600 - - -
Dodd Blvd.: 183rd - Hayes
$ 275,282$ 1,154,600$ 393,700$ 558,000$ -
Total
181
PAVEMENT MANAGEMENT FUND
Fund Description
Pavement Management Fund’s
The primary purpose is to account for pavement management
activities relating to cracksealing, patching, seal coating and overlays. These major maintenance
projects 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 the communities most
significant infrastructure assets.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Pavement Management Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ 1,195,722$ 1,231,594$ 1,231,594$ 1,546,958$ 1,198,487
Intergovernmental - Federal grant 811,509
Special assessments 3,511
12,823 10,202 27,006 3,500 3,500
Investment income
2,023,565 1,241,796 1,258,600 1,550,458 1,201,987
Total revenues
Expenditures - Capital outlay
2,139,854 1,587,832 1,111,725 1,646,186 1,239,633
Public works
Excess (deficiency) of revenues
over expenditures (116,289) (346,036) 146,875 (95,728) (37,646)
Other financing sources (uses)
- - 140,374 - -
Transfer from Genera Fund
Net change in fund balance (116,289) (346,036) 287,249 (95,728) (37,646)
732,915 724,313 616,626 903,875 808,147
Fund balance, January 1
$ 616,626$ 378,277$ 903,875$ 808,147$ 770,501
Fund balance, December 31
2011/2012 Net change in fund balance percentage(10.6%)(4.7%)
182
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Pavement Management Fund
Schedule of Capital Outlay
20112012201320142015
Projects
Crack Seal$ 100,000$ 104,000$ 108,160$ 112,486$ 116,986
Patching 230,000 239,200 248,768 258,719 269,068
Seal Coat 670,000 208,000 216,320 224,973 233,972
Overlays: Minor 201,000 209,800 217,832 226,105 235,629
Overlays: Collector Roads 420,186 453,633 438,397 342,136 618,415
25,000 25,000 25,000 25,000 25,000
Other
$ 1,646,186$ 1,239,633$ 1,254,477$ 1,189,419$ 1,499,070
Total
183
IMPROVEMENT CONSTRUCTION FUND
Fund Description
Improvement Construction Fund
The 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 and
usually extend over several years before completion. Appropriations are provided in the 2011
th
proposed budget for street reconstruction projects ($2.675 million), Kenrick Avenue from 175
rd
to 183 ($2.575 million) and the City share of cost for the County Road 50/60 roundabout
($135,000). The 2012 estimated budget provides for street reconstruction projects ($5.365
million) and the City share of cost for the County Road 50/60 roundabout ($225,000). The street
reconstruction and Kenrick Avenue projects will be financed with the issuance of debt.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Improvement Construction Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Intergovernmental$ 209,258 $ - $ - $ - $ -
15,264 - 3,000 2,350 1,250
Investment income
224,522 - 3,000 2,350 1,250
Total revenues
Expenditures - Capital outlay
General government 97,814
1,413,945 135,250 3,082,909 5,385,000 5,590,000
Public works
1,511,759 135,250 3,082,909 5,385,000 5,590,000
Total expenditures
Excess (deficiency) of revenues
(1,287,237) (135,250) (3,079,909) (5,382,650) (5,588,750)
over expenditures
Other financing sources (uses)
Transfer from Capital Projects:
Municipal State Aid Street Fund 135,250
Transfer to Debt Service:
Property Taxes Fund (12,469)
4,945,000 - - 5,250,000 5,365,000
Issuance of debt
4,932,531 135,250 - 5,250,000 5,365,000
Total other financing sources (uses)
Net change in fund balance 3,645,294 - (3,079,909) (132,650) (223,750)
46,742 - 3,692,036 612,127 479,477
Fund balance, January 1
$ 3,692,036$ -$ 612,127 $ 479,477 $ 255,727
Fund balance, December 31
2011/2012 Net change in fund balance percentage(21.7%)(46.7%)
184
IMPROVEMENT CONSTRUCTION FUND
(continued)
The proposed improvement program for the coming years will increase the street infrastructure
system by approximately one lane mile. The General Fund budget provides for one full time
maintenance position in the fall of 2012 which will be available for snow plowing and other
maintenance task for the new roads and other infrastructure expansions.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Improvement Construction Fund
Schedule of Capital Outlay
20112012201320142015
Projects
Roundabout: County Road 60 / 50 $ 135,000$ 225,000 $ 180,000 $ -$ -
Kenrick Avenue: 175th - 183rd 2,575,000
2,675,000 5,365,000 4,915,000 5,475,000 4,205,000
Street reconstruction projects
$ 5,385,000$ 5,590,000 $ 5,095,000 $ 5,475,000 $ 4,205,000
Total
185
BUILDING FUND
Fund Description
Building Fund
The accounts for the accumulation and disbursement of funds for the
construction or improvement of public buildings. The primary revenue source is sale of assets.
The City has invested in energy efficient systems at the Police Station, Central Maintenance
Facility and the Arts Center. The result has been lower gas, electric and maintenance costs. The
proposed 2011 budget includes financing for cost effective energy system improvements at City
Hall, Central Maintenance Facility and fire stations. The budget also includes remodeling of the
fire department administrative office to improve operational efficiencies.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Building Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Intergovernmental - Federal grant$ - $ 276,174 $ 276,174 $ 12,000 $ -
Investment income 4,204 6,116 6,116 3,675 1,000
Donations 80,000
20,794 567,611 553,839 - 300,000
Miscellaneous
104,998 849,901 836,129 15,675 301,000
Total revenues
Expenditures - Capital outlay
General government 28,009 969,000 105,759 226,456 23,000
Public safety 102,647 42,025 74,310 230,431 309,600
Public works 26,706 71,521 71,409 72,900
45,695 252,800 192,339 2,200 435,000
Parks and recreation
203,057 1,335,346 443,817 531,987 767,600
Total expenditures
Excess (deficiency) of revenues
(98,059) (485,445) 392,312 (516,312) (466,600)
over expenditures
Other financing sources
Transfer from:
General Fund 52,136
Enterprise Liquor Fund 200,000
(238,000) - - - -
Transfer to Debt Service Fund
(38,000) - 52,136 - -
Total other financing sources
Net change in fund balance (136,059) (485,445) 444,448 (516,312) (466,600)
947,125 638,434 811,066 1,255,514 739,202
Fund balance, January 1
$ 811,066$ 152,989 $ 1,255,514$ 739,202 $ 272,602
Fund balance, December 31
2011/2012 Net change in fund balance percentage(41.1%)(63.1%)
186
BUILDING FUND
(continued)
The proposed infrastructure improvements will have a favorable financial impact on the
operating budget by reducing energy and maintenance costs for City Hall, Fire Stations and the
Central Maintenance Facility. The improvements for the fire administration offices will not have
an impact on the operating budget but will result in improved productivity.
Details relating to the proposed expenditures are provided in the 2011 – 2012 Capital
Improvement Plan.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Building Fund
Schedule of Capital Outlay
20112012201320142015
Capital outlay
City Hall$ 226,456$ -$ -$ -$ -
Historical Society Facility 23,000 8,000
Police Station 9,000 300,000
Fire Facilities 221,431 9,600 3,200 120,000
Central Maintenance Facility 72,900
Senior Center 435,000
2,200 - - - -
Arts Center
$ 531,987$ 767,600 $ 3,200$ 120,000 $ 8,000
Total expenditures
187
EQUIPMENT FUND
Fund Description
Equipment Fund
The 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.
A transfer is proposed in from the General Fund ($1.1 million) to finance, at least in part,
equipment acquisition and minimize the use of tax levies for the next several years. The Liquor
Fund will finance the modifications and replacement to the civil defense sirens ($247,498),
police records software and computer hardware ($212,831) and a fire truck ($225,000). Tax
levies are also proposed to finance equipment acquisitions on a pay-as you-go basis in the
amount $554,377 and $372,974 in 2011 and 2012 respectively. Short-term debt (Certificates of
Indebtedness) will be issued in the amount of $665,000 and $600,000 in 2011 and 2012
respectively to complete the financing for the proposed equipment acquisitions.
The estimated 2012 ending fund balance ($463,580) will be appropriated to future equipment
acquisitions to reduce short-term debt and tax levies.
Replacement of equipment when it has reached the end of its useful life results in lower
maintenance cost impacts on the operating budget. All departments evaluated the overall
condition of the City’s fleet and equipment. In situations where the equipment is still operating
at peak efficiencies with minimal operating costs, the expected useful life of the asset has been
extended.
188
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
General property taxes$ - $ - $ - $ 554,377 $ 372,974
Intergovernmental
Market value homestead credit 292,579
ALF Ambulance distribution 117,032 117,032 39,628
Dakota Communication Center rebate 131,058 131,058
Federal Police Byrne Grant 21,761
Investment income 5,679 5,600 5,000 3,250
Donations 2,500
1,000 10,500 10,424 73,625 149,000
Miscellaneous
299,258 258,590 288,375 672,630 525,224
Total revenues
Expenditures - Capital outlay
General government 184,432 1,422 1,403 109,092 186,937
Public safety
Police 396,518 190,838 216,544 716,328 237,577
Fire 3,142 386,908 523,489 333,839 35,564
Public works 788,678 102,457 118,154 974,601 802,297
18,551 29,363 29,528 376,097 128,210
Parks and recreation
1,391,321 710,988 889,118 2,509,957 1,390,585
Total expenditures
Excess (deficiency) of revenues
(1,092,063) (452,398) (600,743) (1,837,327) (865,361)
over expenditures
Other financing sources (uses)
Transfer from:
General Fund 1,263,647 1,100,000
Enterprise - Liquor Fund 9,372 9,372 685,329
- - 655,000 600,000
Issuance of debt
1,263,647 9,372 1,109,372 1,340,329 600,000
Total other financing sources (uses)
Net change in fund balance 171,584 (443,026) 508,629 (496,998) (265,361)
705,496 640,931 877,080 1,385,709 888,711
Fund balance, January 1
$ 877,080$ 197,905$ 1,385,709$ 888,711$ 623,350
Fund balance, December 31
2011/2012 Net change in fund balance percentage(35.9%)(29.9%)
189
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Schedule of Capital Outlay
20112012201320142015
Capital outlay
General government$ 109,092$ 186,937$ 320,424$ 524,972$ 477,524
Public safety
Police 716,328 237,577 606,205 437,951 679,905
Fire 333,839 35,564 165,000 85,000 10,000
Public works 974,601 802,297 611,534 948,246 948,778
376,097 128,210 394,810 839,413 356,510
Parks and recreation
$ 2,509,957$ 1,390,585$ 2,097,973$ 2,835,582$ 2,472,717
Total
190
PARK DEDICATION FUND
Fund Description
Park Dedication Fund
The accounts for park development fees received from land developers.
The expenditures consist of acquiring and developing City parks and trails.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Park Dedication Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Intergovernmental
State grant$ 4,845 $ -$ -$ -$ -
Charges for services 108,245 405,970 237,350 474,700 1,026,330
Special assessments 80
Investment income 19,898 4,750 3,000 4,350
115,246 - 123,970 18,500 18,500
Miscellaneous
248,314 405,970 366,070 496,200 1,049,180
Total revenues
Expenditures - Capital outlay
673,030 144,000 434,354 384,000 198,075
Parks and recreation
Excess (deficiency) of revenues
over expenditures (424,716) 261,970 (68,284) 112,200 851,105
1,188,970 194,741 764,254 695,970 808,170
Fund balance, January 1
$ 764,254 $ 456,711$ 695,970$ 808,170$ 1,659,275
Fund balance, December 31
2011/2012 Net change in fund balance percentage16.1%105.3%
The proposed improvements for 2011 and 2012 are anticipated to have nominal impact on the
operating budget.
191
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Park Dedication Fund
Schedule of Capital Outlay
20112012201320142015
Projects
Developers credits$ 50,000 $ 80,000$ 90,000$ 150,000$ 150,000
Trail improvements 68,075 113,438 93,980
Park improvements 290,000 481,000 250,000
Other 44,000 50,000 76,000 129,000 94,000
Total Capital Improvements$ 384,000 $ 198,075$ 760,438$ 622,980$ 244,000
Details relating to the proposed park expenditures are provided in the 2011 – 2015 Capital
Improvement Plan.
192
TRAIL IMPROVEMENT FUND
Fund Description
Trail Improvement Fund
The accounts for the long term maintenance, repairs and
replacement of the City Trails. The primary revenue source is a transfer from the General
Fund.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Trail Improvement Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
$ - $ - $ - $ 12,000 $ 10,000
Investment income
Expenditures - Capital outlay
- - - 159,886 158,381
Parks and recreation
Excess (deficiency) of revenues
- - - (147,886) (148,381)
over expenditures
Other financing sources (uses)
Transfer from:
- - 1,400,000 - -
General Fund
Net change in fund balance - - 1,400,000 (147,886) (148,381)
- - - 1,400,000 1,252,114
Fund balance, January 1
$ - $ - $ 1,400,000$ 1,252,114$ 1,103,733
Fund balance, December 31
2011/2012 Net change in fund balance percentage(10.6%)(11.9%)
The proposed improvements for 2011 and 2012 are anticipated to have nominal impact on the
operating budget.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Trail Improvement Fund
Schedule of Capital Outlay
20112012201320142015
Trail sealcoating $ 60,443$ 58,028$ 101,985$ 77,306$ 76,324
99,443 100,353 524,263 391,255 -
Trail improvements
$ 159,886$ 158,381$ 626,248$ 468,561$ 76,324
Total
Details relating to the proposed trail improvement expenditures are provided in the 2011 – 2015
Capital Improvement Plan.
193
STORM SEWER FUND
Fund Description
Storm Sewer Fund
The accounts for fees and area charges to land developers for construction
of trunk storm sewer systems.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Storm Sewer Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Charges for services$ 143,090$ 150,937$ 146,541$ 293,082$ 684,596
Special assessments 19,054 15,000 15,000 15,000 15,000
6,851 2,844 900 300 700
Investment income
168,995 168,781 162,441 308,382 700,296
Total revenues
Expenditures - Capital outlay
75,311 72,376 73,270 146,541 342,298
Public works
Excess (deficiency) of revenues
93,684 96,405 89,171 161,841 357,998
over expenditures
Other financing sources (uses)
Transfer from:
Debt Service - Tax Increment Fund 57,700 60,300 60,300 57,600 59,900
Transfer to:
General Fund (36,230) (40,827) (37,153)
(331,000) (331,000) (331,000) (331,000) (331,000)
Debt Service - Special Assess. Fund
(309,530) (311,527) (307,853) (273,400) (271,100)
Total other financing sources (uses)
Net changes in fund balances (215,846) (215,122) (218,682) (111,559) 86,898
618,321 393,325 402,475 183,793 72,234
Fund balance, January 1
$ 402,475$ 178,203$ 183,793$ 72,234$ 159,132
Fund balance, December 31
2011/2012 Net change in fund balance percentage(60.7%)120.3%
The proposed improvements for 2011 and 2012 are anticipated to have nominal impact on the
operating budget.
194
STORM SEWER FUND
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Storm Sewer Fund
Schedule of Capital Outlay
20112012201320142015
Projects
$ 146,541$ 342,298$ 415,569$ 440,177$ 476,812
Developer credits
$ 146,541$ 342,298$ 415,569$ 440,177$ 476,812
Total
195
WATER FUND
Fund Description
Water Fund
The accounts for revenues derived primarily from connection charges collected at
the time building permits are issued and antenna site leases with wireless communications
companies. Funds are appropriated towards the construction costs of water supply lines, wells
and water storage facilities, and provide the debt service to bonds issued to finance the
construction of the City’s water treatment facility and other trunk infrastructure improvements.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Water Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Charges for services$ 751,108$ 1,104,675$ 643,500$ 643,500$ 819,000
Special assessments 67,449 14,104 5,000 5,000 5,000
Investment income 24,673 4,591 4,591 (2,901) 1,110
138,898 175,933 197,975 199,955 201,954
Miscellaneous
982,128 1,299,303 851,066 845,554 1,027,064
Total revenues
Expenditures - Capital outlay
567,767 206,200 206,200 216,500 227,400
Public works
Excess (deficiency) of revenues
414,361 1,093,103 644,866 629,054 799,664
over expenditures
Other financing sources (uses)
Transfer from Enterprise Fund
Water Operating Fund 1,200,000 400,000
Transfer to Debt Service:
Special Assessments Fund (496,093) (136,093) (136,093) (136,093) (136,093)
(1,289,880) (1,269,000) (1,269,480) (1,292,380) (1,038,280)
Water Revenue Fund
(1,785,973) (1,405,093) (1,405,573) (228,473) (774,373)
Total other financing sources (uses)
Net changes in fund balances (1,371,612) (311,990) (760,707) 400,581 25,291
1,841,757 347,388 470,145 (290,562) 110,019
Fund balance, January 1
$ 470,145$ 35,398$ (290,562)$ 110,019$ 135,310
Fund balance, December 31
2011/2012 Net change in fund balance percentage(137.9%)23.0%
The proposed improvements for 2011 and 2012 are anticipated to have nominal impact on the
operating budget.
196
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Water Fund
Schedule of Capital Outlay
20112012201320142015
Projects
Well #20$ -$ -$ 600,000$ -$ -
216,500 227,400 227,400 227,400 227,400
Trunk water main extensions
$ 216,500$ 227,400$ 827,400$ 227,400$ 227,400
Total
197
SANITARY SEWER FUND
Fund Description
Sanitary Sewer Fund
The 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 trunk systems.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Sanitary Sewer Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Charges for services$ 174,962$ 99,781$ 127,875$ 127,875$ 170,500
Special assessments 51,203 24,236 15,000 7,000 7,000
44,271 19,397 23,075 22,679 22,593
Investment income
270,436 143,414 165,950 157,554 200,093
Total revenues
Expenditures - Capital outlay
255,272 450,836 330,526 72,500 302,500
Public works
Excess (deficiency) of revenues
over expenditures 15,164 (307,422) (164,576) 85,054 (102,407)
Other financing sources (uses)
Transfer to Debt Service:
(463,647) - - - -
Special Assessments Fund
Net changes in fund balances (448,483) (307,422) (164,576) 85,054 (102,407)
2,849,801 2,103,095 2,401,318 2,236,742 2,321,796
Fund balance, January 1
$ 2,401,318$ 1,795,673$ 2,236,742$ 2,321,796$ 2,219,389
Fund balance, December 31
2011/2012 Net change in fund balance percentage3.8%(4.4%)
The proposed improvements for 2011 and 2012 are anticipated to have nominal impact on the
operating budget.
198
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Sanitary Sewer Fund
Schedule of Capital Outlay
20112012201320142015
Projects
Trunk oversizing upstream of ML07$ 5,000$ -$ -$ -$ -
Trunk oversizing SC135 to SC134 67,500
Trunk oversizing NC127a to NC127 102,000
Trunk oversizing NC05 to NC06 66,000
Trunk oversizing NC127a to NC127b 85,000
Trunk oversizing SC22 to SC20 22,500
Trunk oversizing SC12 to SC12a 27,000
Trunk oversizing NC129 to NC127b 67,500
Trunk oversizing SC22 to SC22a 17,000
Trunk oversizing SC43 to SC44 21,000
Trunk oversizing LS24 to NC129 190,000
Trunk oversizing Upstream of NC74 10,000
Trunk oversizing NC132 to NC129 40,500
Trunk oversizing SC44 to SC43 10,000
Trunk oversizing 260,200
- - - - 91,200
Sanitary Sewer Reconstruction
$ 72,500$ 302,500$ 295,500$ 60,500$ 351,400
Total
Details relating to the proposed Sanitary Sewer Fund expenditures are provided in the 2011 –
2015 Capital Improvement Plan.
199
TAX INCREMENT FUND
Fund Description:
Tax Increment Fund
The 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.
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Tax Increment Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimate
ActualBudgetEstimateBudgetBudget
Revenues
Tax increment$ 222,722 $ 221,515 $ 202,084 $ 202,084 $ 202,084
Intergovernmental
Market value homestead credit 16,050 16,050 16,050 16,050 16,050
11 209 5 5 5
Investment income
238,783 237,774 218,139 218,139 218,139
Total revenues
Expenditures - Capital outlay
206,361 195,797 195,797 195,797 195,797
General government
Excess (deficiency) of revenues
over expenditures 32,422 41,977 22,342 22,342 22,342
Other financing sources (uses)
Transfer to Debt Service:
(10,905) (21,810) (21,810) (21,810) (21,810)
Special Assessments Fund
Net change in fund balance 21,517 20,167 532 532 532
(9,209) 11,753 12,308 12,840 13,372
Fund balance, January 1
$ 12,308 $ 31,920 $ 12,840 $ 13,372 $ 13,904
Fund balance, December 31
2011/2012 Net change in fund balance percentage4.1%4.0%
The proposed improvements for 2011 and 2012 are anticipated to have no impact on the
operating budget.
200
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Tax Increment Fund
Schedule of Capital Outlay
20112012201320142015
Capital outlay
DKM tax increment district rebate$ 191,667 $ 191,667 $ 191,667 $ 191,667 $ -
State of Minnesota/Dakota County
4,130 4,130 4,130 4,130 -
administration fees
$ 195,797 $ 195,797 $ 195,797 $ 195,797 $ -
Total
201
Enterprise Funds
Enterprise Funds account for liquor, water and sanitary sewer 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, sanitary sewer service,
and street lighting provided to the community.
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 220 cities operating municipal liquor stores in Minnesota, Lakeville continues to have the
largest and most profitable operation. The revenue generated from the operations has financed,
at least in part, numerous projects including:
Dakota County Heritage Library Land Civil defense sirens.
Acquisition.
Central Maintenance Facility
Quarter of a million dollars to Ames architectural services.
Arena.
The Liquor Fund also finances 25% of
City Hall expansion projects. the Chemical Awareness Coordinator
position associated with Independent
Fire Station remodeling, repairs and debt
School District #194.
services.
Police Station expansion projects.
Services:
Control the sale of alcoholic beverages. proceeds are committed to financing
The City is committed to restricting capital improvements which would
youth access to alcohol. Employees are otherwise be financed with property
also trained in how to observe and taxes.
decline sales to obviously intoxicated
Asset management and inventory
individuals.
integrity plays an essential role in
Lakeville is committed to quality profitability. The retail liquor industry is
customer service. Product selection is highly competitive. Inventory controls
continually evolving and is the lifeblood as well as policies that include well
that drives our industry. Wine defined checks and balances ensure
specifically is a hallmark for Lakeville. assets are controlled, while the
Store ambiance, strategic location of management team and point of sale
stores and customer satisfaction are operations enable Lakeville to maintain
deemed a high priority. a high rate of return on investment
through effective marketing strategies.
Profits are dedicated to the reduction of
property taxes. Liquor Fund net
202
LIQUOR FUND
(continued)
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Estimate Budget Estimate Estimate Estimate
Operations Director 1.0 1.0 1.0 1.0 1.0
Assistant Operations Director 1.0 1.0 .25 --- ---
Assistant to the Operations Director --- --- .50 1.0 1.0
Store Managers 3.0 3.0 3.0 3.0 3.0
Inventory Control Technician 1.0 1.0 1.0 1.0 1.0
Assistant Store Managers 5.0 5.0 5.0 5.0 5.0
Lead Sales Associates 2.7 2.7 2.7 2.7 2.7
Sales Associates 12.0 12.0 12.0 12.0 12.0
Total 25.7 25.7 25.5 25.7 25.7
Activity Measures:
2009 2010 2010 2011 2012
Activity
Actual Budget Estimate Estimate Estimate
Sales (in millions) $14.6 $14.7 $14.8 $14.9 $15.1
Operating Income $1,678,214 $1,495,263 $1,579,809 $1,529,718 $1,513,591
Operating Income as a Percent
11.5% 10.2% 10.6% 10.3% 10.0%
of Sales
Customer Transactions:
Heritage Store Location 177,602 188,021 181,414 184,649 189,542
Galaxie Store Location 197,599 196,244 196,644 198,610 201,589
Kenrick Store Location 222,371 212,987 223,629 209,981 212,080
Total Customer
597,572 597,252 599,707 593,240 603,211
Transactions
ISD #194 Chemical Awareness
$18,324 $18,324 $18,324 $18,324 $18,324
Program
Liquor Fund Contributions:
Fire Station Debt Service $189,660 $190,097 $190,097 $185,320 $185,320
Police Station Debt Service $100,000 $100,000 $100,000 $100,000 $100,000
General Fund For Human
$75,350 $76,337 $77,144 $78,016 $82,832
Resources/Information
Technology Services
General Fund for Payment in
$62,620 $64,499 $64,499 $66,434 $68,427
Lieu of Taxes (PILT)
Equipment, Major
$201,660 $9,372 $9,372 $00.00 $00.00
Maintenance, and
Technology
Capital Outlay $10,582 $2,002,119 $64,598 $14,000 $3,006,851
203
LIQUOR FUND
(continued)
2010 Goals and Objectives
Land acquisition for future store at County Road 70 and Interstate Highway 35 Interchange
Strategic Goal A – 5)
vicinity. (
Obtain City owned site for the Heritage (leased) location to maintain or increase profitability.
Improve community awareness on the benefits of the municipal liquor operation.
Continue to improve employee knowledge, customer service and profitability of the
operation.
Sale of alcoholic beverages in compliance with applicable State statutes and enforcement.
Servicing customers needs quickly and professionally.
Controlling inventory levels, while ensuring proper level of stock that provides good
customer service and selection.
Ensuring inventory accuracy by maintaining checks and balances within the system and by
completing inventories on a routine basis.
Promote the wine club. Includes conducting four wine club tastings annually and providing
education materials to the members.
Responsible for all marketing, advertisement and promotion of the business.
Conduct Silent Auctions in order to build community relationships while providing
additional revenue for other City Departments or programs.
Develop relationships and provide service to other businesses within the community.
Maintain proper operational policies and procedures in order to ensure the safety and security
of the business.
Educate and mentor employees. Employee meetings conducted five times annually.
Provide funding for Chemical Awareness Coordinator in the schools.
Work closely with fellow associations as well as MADD, SADD and other organizations
regarding alcohol control.
Educate the community on the benefits of a municipal liquor operation.
Monitor legislative issues related to liquor stores that could negatively impact the operation.
2011 – 2012 Goals and Objectives:
Achieve sales projections according to the Adopted Liquor Fund Budget.
Update Liquor Department Employee Manual.
Generate interest and encourage customer input and participation through social media
activities on Facebook.
Increase interest, knowledge and membership of the “Brew Club”. Achieve a minimum of
1,000 Brew Club members by the end of 2011.
Improve customer counts by closely monitoring new avenues of marketing and determining
which methods are most impactful and cost effective.
Respond to legislative issued related to liquor stores that could negatively impact the liquor
operation.
Develop procedures to monitor and evaluate practicality of Club memberships.
Maintain the lowest operating expense as a percent of sales among the top ten highest
volume liquor operations in the state.
204
LIQUOR FUND
(continued)
Continue to work closely with other municipal liquor operations in the state. Assist cities in
ensuring profitability with their operations in order to maintain municipal liquor state wide.
Evaluate all liquor department contracts ensuring that we have necessary coverage in place at
all the lowest fiscally responsible cost.
Budget Summary:
CITY OF LAKEVILLE, MINNESOTA
Enterprise - Liquor Fund
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Sales and cost of sales
Sales$ 14,604,481 $ 14,693,942 $ 14,887,241 $ 14,913,405 $ 15,141,465
10,806,701 11,009,955 11,146,914 11,164,822 11,334,727
Cost of sales
3,797,780 3,683,987 3,740,327 3,748,583 3,806,738
Gross profit
Operating expenses
Personnel services 1,235,561 1,279,786 1,253,330 1,313,785 1,375,823
Commodities 47,197 56,880 59,342 57,794 63,062
Other charges and services 831,945 852,058 847,846 847,286 854,262
117,211 141,412 117,211 117,211 117,211
Depreciation
2,231,914 2,330,136 2,277,729 2,336,076 2,410,358
Total operating expenses
1,565,866 1,353,851 1,462,598 1,412,507 1,396,380
Operating income
Non-operating revenue (expense)
Intergovernmental 3,762 18,696 18,696 3,900 3,900
Investment income 85,650 53,121 46,575 63,600 56,793
Miscellaneous - Utility rebates 2,254 2,254
Interest and bond expense (207,599) (189,314) (189,314) (181,122) (173,643)
Transfers in (out)
General Fund (139,094) (142,036) (143,640) (144,950) (151,759)
Special Rev. Env. Res Fund (976) (976)
Debt Service:
HRA Lease Rev. Fund (189,660) (190,097) (190,097) (185,320) (185,320)
Property Taxes Fund (100,000) (100,000) (100,000) (100,000) (100,000)
Capital Projects:
Equipment Fund (9,372) (9,372) (685,329)
(200,000) - - - -
Building Fund
(746,941) (556,748) (564,898) (1,230,197) (551,005)
Total non-operating (net)
Change in net assets 818,925 797,103 897,700 182,310 845,375
5,411,522 6,107,591 6,230,447 7,128,147 7,310,457
Net assets, January 1
Net assets, December 31$ 6,230,447$ 6,904,694$ 7,128,147 $ 7,310,457$ 8,155,832
Net change in 2011 and 2012 fund balance percentage2.6%11.6%
205
LIQUOR FUND
(continued)
Liquor Fund
The 2011 net assets are expected to increase by $182,310 or 2.6%. This increase
is primarily attributed to gross profit revenue of $3,748,583 exceeding operating expenses other
uses of $2,642,704.
Liquor Fund
Schedule of Working Capital
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Working Capital
Current assets
Cash and investments$ 5,352,617 $ 4,225,868$ 5,959,368 $ 6,095,672 $ 3,896,987
Receivables 22,993 38,088 22,993 23,338 23,688
Inventory 1,336,502 1,287,692 1,392,635 1,434,414 1,477,447
22,081 22,871 22,412 22,749 23,089
Prepaid expenses
6,734,193 5,574,519 7,397,408 7,576,173 5,421,211
Total current assets
Current liabilities
Salaries payable 158,144 202,892 162,888 167,775 172,808
Accrued interest payable 83,154 91,753 83,154 85,649 88,218
Accounts payable 933,124 1,199,924 933,124 961,118 989,951
295,000 145,000 145,000 150,000 160,000
Current bonds payable
1,469,422 1,639,569 1,324,166 1,364,542 1,410,977
Total current liabilities
$ 5,264,771 $ 3,934,950$ 6,073,242 $ 6,211,631 $ 4,010,234
Working capital, December 31
Changes in Working Capital
Working capital provided
Change in net assets$ 818,925 $ 797,103$ 897,700 $ 182,310 $ 845,375
Depreciation 117,211 141,412 117,211 117,211 117,211
6,345 3,158 3,158 2,868 2,868
Bond issuance - net
942,481 941,673 1,018,069 302,389 965,454
Total funds provided
Working capital applied
Additions to capital assets 10,582 2,002,119 64,598 14,000 3,006,851
295,000 145,000 145,000 150,000 160,000
Bonds payable
305,582 2,147,119 209,598 164,000 3,166,851
Total funds applied
Net increase (decrease) 636,899 (1,205,446) 808,471 138,389 (2,201,397)
4,627,872 5,140,396 5,264,771 6,073,242 6,211,631
Working capital, January 1
$ 5,264,771 $ 3,934,950$ 6,073,242 $ 6,211,631 $ 4,010,234
Working capital, December 31
206
LIQUOR FUND
(continued)
The 2011 -2012 budget is based on the premise on the assumption that sales will continue to
grow, albeit at a slow pace, in spite of the intense competition from private liquor stores in
neighboring communities. As such Sales are projected to be $14.91 million and $15.14 million
in 2011 and 2012 respectively. Gross profits are anticipated to be $3.75 and $ 3.81 million in
2011 and 2012.
Liquor revenue bonds were issued in 2007 to finance the construction of the Galaxie Avenue
store. The debt service requirements (cash basis) of these bonds are shown as follows:
MaturityDue in 2011
DateOutstandingPrincipalInterest
$ 3,690,000$ 145,000$ 180,875
Liquor Revenue Bonds of 1997Feb-01-27
The above debt is supported by liquor revenue.
The Heritage store operates in a leased facility. A 15 year lease was executed with Heritage
Commons LLC in 2000. The remaining balance of the minimum lease payments for base
rent as of December 31, 2009 is $739,800. The lease expires on June 30, 2014.
The 2011 capital outlay includes approximately $1.9 million to acquire property for a new
store in the vicinity of Interstate Highway 35 and County Road 70
.
Budget Factors:
Personnel services
The personnel services budget will increase $4,882 and $5,193 for 2011 and 2012 respectively
due to health insurance and a State mandated .25% adjustment in PERA pension contributions.
Wage adjustments, if any, are yet to be determined.
Commodities
Commodities will increase $914 and $5,268 in 2011 and 2012 respectively. Commodities
represent approximately 2.6% of total operating expense budget.
Other charges and services
Other charges and services will decrease by $4,772 in the 2011 due in part to the reductions in
the scope of store maintenance projects for the coming year. Costs are projected to increase by
$6,976 in 2012 due primarily to credit card fees, contract building maintenance and other
operational issues.
The Heritage store operates in a leased facility. A 15 year lease was executed with Heritage
Commons LLC in 2000. The lease expires on June 30, 2014.
Capital outlay
Microsoft Office upgrades and retrofitting the Kenrick Liquor Store coolers with LED lighting
are included in the 2011 budget. The Arts Center computer and the Kenrick Avenue outdoor
neon sign will be replaced in 2012.
207
UTILITY FUND
Overall
Fund Description:
The Utility Fund is responsible for the operation of a 20 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). Beginning January 1, 2010, City street lighting activity was
accounted for in the Utility Fund; this activity was previously accounted for in the General Fund
Street Department.
The Utility Fund budget is effectively managed by budgeting water, sanitary sewer, and street
lighting as separate operations. Individual schedules for revenues, expenses, changes in net
assets, and working capital are provided for each of the respective operations. The combining of
all these operations comprises the Utility Fund which is presented in the Utility Fund Statement
of Revenues, Expenses and Changes in Net Assets, and Schedule of Working Capital.
Services:
Water.
The system includes operation which transmits effluent to the M.C.E.S.
and maintenance of 17 wells, 5 towers, 2 Empire Treatment Facility.
reservoirs, water treatment plant, and
Street lighting.
The street lighting
310 miles of water distribution system.
system is operating and maintained by
Sanitary sewer.
The system includes Xcel Energy and Dakota Electric
maintenance of a collection and Association (DEA). The City of
forwarding system of 255 miles of Lakeville bills customers on a quarterly
sanitary sewer main 20 lift stations basis for lighting
There are no proposed staffing changes for 2011 and 2012.
Staffing:
2009 2010 2010 2011 2012
Position (FTE)
Actual Budget Estimate Estimate Estimate
Operations & Maintenance Director 1.0 1.0 1.0 1.0 1.0
Utilities Superintendent 1.0 1.0 1.0 1.0 1.0
Utilities Supervisor 1.0 1.0 1.0 1.0 1.0
Op. and Maint./Safety Specialist 1.0 1.0 1.0 1.0 1.0
Utility Maintenance II 11.0 11.0 11.0 11.0 11.0
Utility Billing Technicians 2.0 2.0 2.0 2.0 2.0
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Total 18.0 18.0 18.0 18.0 18.0
208
UTILITY FUND
Overall
(continued)
Capital outlay is allocated to the water and sanitary sewer operations based on benefit to the
respective operation. The 2011 and 2012 capital outlay is as follows:
2011 Proposed2012 Estimated
SanitarySanitary
ItemWaterSewerWaterSewer
Floor resurfacing$ 11,518 $ 11,518
Uninterruptible power supply 21,455
Water Treatment Facility improvements 25,000 25,000
Server storage 1,000
GPS data collector 4,884 4,884
Gate card reader 1,400 1,400
Cordless hydrant wrench 6,620 -
Utility locators 983 983
Microsoft Office 3,252 3,252
Fuel system 4,054 4,054
1/2-Ton pickup truck with tommy gate$ 13,388 $ 13,388
7,862 7,862 8,991
Computers; desktops and laptops 8,991
$ 87,028 $ 59,953 $ 22,379 $ 22,379
Rate increases are proposed as a result of increases in operating costs. Water rate adjustments
will finance debt service requirements. Sanitary sewer rate adjustments are the result of
M.C.E.S. costs for treatment of system effluent. Street lights will finance electricity rate
increases. The surface water management fee adjustments are to finance environmental resource
projects.
20102011
Increase
Quarterly ratesBasisActualProposed
Water baseAccount$ 3.60 $ 3.60$ -
Water tier 1 (<30 thousand gallons)Gallonage$ 0.79 $ 0.85$ 0.06
Water tier 2 (30 - 49 thousand gallons)Gallonage$ 1.24 $ 1.34$ 0.10
Water tier 3 (>49 thousand gallons)Gallonage$ 2.00 $ 2.30$ 0.30
State of MN. water testing feeAccount$ 1.59 $ 1.59$ -
Sanitary sewer baseAccount$ 6.25 $ 6.25$ -
Sanitary sewer usage (1,000 gallons)Gallonage$ 2.99 $ 3.09$ 0.10
Sanitary sewer non metered accountsAccount$ 57.98 $ 59.84$ 1.86
Street lightingAccount$ 6.75 $ 7.65$ 0.90
209
UTILITY FUND
Overall
(continued)
Budget Summary – Utility Fund:
CITY OF LAKEVILLE, MINNESOTA
Enterprise - Utility Fund
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Operating revenues
User charges for services$ 7,291,391 $ 7,950,345 $ 7,264,083 $ 8,121,475 $ 8,529,147
200,283 175,119 202,286 204,309 206,352
Other
7,491,674 8,125,464 7,466,369 8,325,784 8,735,499
Total operating revenue
Operating expenses
Personnel services 1,379,992 1,508,181 1,493,683 1,548,861 1,611,470
Commodities 372,579 435,136 378,245 389,755 402,609
Other charges and services 1,698,616 2,726,033 2,725,405 2,842,196 3,121,246
Disposal charges 2,645,442 2,825,699 2,825,699 2,941,489 3,065,964
2,995,222 3,039,952 3,039,952 3,100,751 3,193,365
Depreciation
9,091,851 10,535,001 10,462,984 10,823,052 11,394,654
Total operating expenses
(1,600,177) (2,409,537) (2,996,615) (2,497,268) (2,659,155)
Operating income
Non-operating revenue (expense)
Intergovernmental 3,264 186,394 186,394 3,264 3,264
Investment income 140,342 108,422 88,904 130,727 164,018
Miscellaneous - Utility rebates - 11,978 11,978 - -
Infrastructure contributed 1,235,154 237,333 237,333 836,834 246,922
Disposal of assets - - 95,000 - 4,500
Transfers in (out)
General Fund (120,825) (280,461) (260,339) (271,725) (277,852)
Special Revenue:
Surface Wtr. Mgmt. Fund 20,484 39,703 43,353 44,944 45,622
Capital Projects:
- - - (1,200,000) (400,000)
Water Fund
1,278,419 303,369 402,623 (455,956) (213,526)
Total non-operating (net)
Change in net assets (321,758) (2,106,168) (2,593,992) (2,953,224) (2,872,681)
113,408,603 112,689,468 113,086,845 110,492,853 107,539,629
Net assets, January 1
Net assets, December 31$ 113,086,845$ 110,583,300$ 110,492,853$ 107,539,629$ 104,666,948
Net change in 2011 and 2012 fund balance percentage(2.7%)(2.7%)
Utility Fund
The 2011 net assets are expected to decrease by ($2,953,224) and ($2,872,681) in
2011 and 2012 respectively. This decrease is primarily attributed to the non-working capital
expense for depreciation on contributed assets and $1,200,000 and $400,000 transfers for debt
service in 2011 and 2012 respectively.
210
UTILITY FUND
Overall
(continued)
Enterprise - Utility Fund
Schedule of Working Capital
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Working Capital
Current assets
Cash and investments$ 8,890,384 $ 9,236,420$ 8,715,106$ 8,200,869$ 9,215,304
Receivables 2,237,520 2,059,713 2,243,479 2,276,844 2,378,311
Inventory 50,031 23,241 50,532 51,036 51,548
1,750 1,803 1,768 1,787 1,804
Prepaid expenses
11,179,685 11,321,177 11,010,885 10,530,536 11,646,967
Total current assets
Current liabilities
Salaries payable 181,052 265,721 204,145 231,350 264,986
466,616 480,813 673,168 1,001,900 2,055,692
Accounts payable
647,668 746,534 877,313 1,233,250 2,320,678
Total current liabilities
$ 10,532,017 $ 10,574,643$ 10,133,572$ 9,297,286$ 9,326,289
Working capital, December 31
Changes in Working Capital
Working capital provided
Change in net assets$ (321,758)$ (2,106,168)$ (2,593,992)$ (2,953,224)$ (2,872,681)
2,995,222 3,039,952 3,039,952 3,100,751 3,193,364
Depreciation
2,673,464 933,784 445,960 147,527 320,683
Total funds provided
Working capital applied
Infrastructure contributed$ 1,235,154 $ 237,333$ 237,333$ 836,834$ 246,922
227,142 559,210 607,072 146,979 44,758
Additions to capital assets
1,462,296 796,543 844,405 983,813 291,680
Total funds applied
Net increase (decrease) 1,211,168 137,241 (398,445) (836,286) 29,003
9,320,849 10,437,402 10,532,017 10,133,572 9,297,286
Working capital, January 1
$ 10,532,017 $ 10,574,643$ 10,133,572$ 9,297,286$ 9,326,289
Working capital, December 31
Working capital is a valuable measurement of a business’s ability to meet its current obligations
(liquidity). The above schedule presents working capital as of December 31 (current assets less
current liabilities), and changes in working capital (capital provided less capital applied). The
Utility Fund
above schedule of working capital combines the working capital of the water,
sanitary sewer, and street light operations as shown individually within this section.
211
UTILITY FUND
Water Operation
Program Description:
The water operations is a collection, treatment, storage, and distribution system that delivers
potable water to over 17,275 residential, commercial, institutional, and industrial properties. The
system also accounts for all costs related to the operation and maintenance of 16 wells, 6 towers,
2 reservoirs, water treatment plant, and 310 miles of water distribution system.
Services - Water Operation:
Collect, treat, and distribute potable Monitor and ensure water quality and
water to meet the needs of residential, compliance with U.S. Environmental
commercial, institutional, and industrial Protection Agency and Minnesota
customers. Department of Health requirements.
Operate and maintain 17 ground water Operate a 20 million gallon per day
well stations. Treat ground water with water treatment plant.
chemicals to remove iron and
Locate underground utility structures,
manganese and improve the taste.
water main, and residential curb stops.
Maintain 310 miles of water main.
Enforce water restrictions pursuant to
Repair water main breaks. Inspect and
approved operations policy.
approve new water main construction.
Exercise fire hydrants annually.
Water Activity Measures:
2009 2010 2011 2012
Activity
Actual Estimate Estimate Estimate
Miles of water main 310 313 313 316
Number of
Wells 17 17 17 17
Water towers / reservoirs 8 8 8 8
Hydrants flushed 3374 3389 3409 3429
Gopher State One Call locates 6896 6960 7120 7180
Water utility accounts 17175 17290 17420 17550
Millions of Gallons of treated water
Total annual 2,411 2,166 2,415 2,415
DNR permitted water usage 2,812 2,812 2,812 2,812
Maximum daily 16.1 13.5 20.0 20.0
Water main repairs 14 10 11 12
Service order completed 2,500 2,500 2,700 2,750
212
UTILITY FUND
Water Operation
(continued)
Community Survey:
Service is
Quality of Residents who
considered
Service/Program
service is support current
essential or very
excellent or good funding level
important
Residential Responses:
Quality of drinking water 80% 97% 96%
Business Responses:
Quality of drinking water 80% 97% 87%
2010 Goals and Objectives - Water Operation:
(Strategic Goal J-2)
Reduce consumption of water per customer over the next three years.
Develop and implement a comprehensive public information campaign on water supply
(Strategic Goal J-3)
Adopt a stronger conservation policy to address diminishing water supply for future
(Strategic Goal J-4)
development.
Rehabilitation of well #14.
Installation of an emergency backup generator at well #14.
Contract replacing the interior coatings of the Dakota Heights water tower.
Continue the change out of numeric readout water meters with newer automated digital
meters.
2011 - 2012 Goals and Objectives - Water Operation:
Rehabilitation of well #14
Repainting of the Fairfield Water Tower
Repainting of Airlake Water Tower
Rehabilitation of 600 horse powered high service pump at the Water Treatment Facility
Implement CarteGraph asset management system.
213
UTILITY FUND
Water Operation
(continued)
Budget Summary - Water Operation:
CITY OF LAKEVILLE, MINNESOTA
Enterprise - Utility Fund Water Operation
Schedule of Revenues, Expenses and Changes in Net Assets
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Operating revenues
User charges for services$ 3,431,726 $ 3,174,694 $ 2,499,677 $ 3,165,872 $ 3,387,112
200,283 175,119 202,286 204,309 206,352
Other
3,632,009 3,349,813 2,701,963 3,370,181 3,593,464
Total operating revenue
Operating expenses
Personnel services 805,100 913,199 822,511 853,644 886,099
Commodities 304,898 354,060 297,907 308,592 320,510
Other charges and services 1,256,326 1,802,158 1,773,498 1,893,266 1,917,857
1,896,712 1,924,012 1,924,012 1,962,492 2,032,341
Depreciation
4,263,036 4,993,429 4,817,928 5,017,994 5,156,807
Total operating expenses
(631,027) (1,643,616) (2,115,965) (1,647,813) (1,563,343)
Operating income (loss)
Non-operating revenue (expense)
Intergovernmental 1,632 184,762 184,762 1,632 1,632
Investment income 94,358 77,090 59,268 86,320 96,577
Miscellaneous - Utility rebates 11,978 11,978
Infrastructure contributed 984,099 199,683 199,683 798,431 207,751
Disposal of assets 2,250
Transfers in (out)
General Fund (135,414) (128,132) (101,532) (105,973) (108,362)
Special Revenue:
Enviro. Res. Fund 9,014 23,932 24,622 26,248 26,904
Capital Projects:
- - - (1,200,000) (400,000)
Water Fund
953,689 369,313 378,781 (393,342) (173,248)
Total non-operating (net)
Change in net assets 322,662 (1,274,303) (1,737,184) (2,041,155) (1,736,591)
73,696,842 73,911,413 74,019,504 72,282,320 70,241,165
Net assets, January 1
Net assets, December 31$ 74,019,504$ 72,637,110$ 72,282,320$ 70,241,165$ 68,504,574
Net change in 2011 and 2012 fund balance percentage(2.8%)(2.5%)
214
UTILITY FUND
Water Operation
(continued)
Water Operation
Schedule of Working Capital
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Working Capital
Current assets
Cash and investments$ 5,926,817$ 6,612,022 $ 5,754,653 $ 4,828,838 $ 4,886,206
Receivables 2,226,536 2,053,653 2,236,736 2,266,726 2,362,758
Inventory 48,281 21,438 48,764 49,251 49,744
1,750 1,803 1,768 1,787 1,804
Prepaid expenses
8,203,384 8,688,916 8,041,921 7,146,602 7,300,512
Total current assets
Current liabilities
Salaries payable 106,415 163,223 120,183 137,103 158,317
228,017 311,704 274,385 326,267 393,344
Accounts payable
334,432 474,927 394,568 463,370 551,661
Total current liabilities
$ 7,868,952$ 8,213,989 $ 7,647,353 $ 6,683,232 $ 6,748,851
Working capital, December 31
Changes in Working Capital
Working capital provided
Change in net assets$ 322,662$ (1,274,303)$ (1,737,184)$ (2,041,155)$ (1,736,591)
1,896,712 1,924,012 1,924,012 1,962,492 2,032,340
Depreciation
2,219,374 649,709 186,828 (78,663) 295,749
Total funds provided
Working capital applied
Infrastructure contributed 984,099 199,683 199,683 798,431 207,751
66,084 208,874 208,744 87,027 22,379
Additions to capital assets
1,050,183 408,557 408,427 885,458 230,130
Total funds applied
Net increase (decrease) 1,169,191 241,152 (221,599) (964,121) 65,619
6,699,761 7,972,837 7,868,952 7,647,353 6,683,232
Working capital, January 1
$ 7,868,952$ 8,213,989 $ 7,647,353 $ 6,683,232 $ 6,748,851
Working capital, December 31
215
UTILITY FUND
Water Operation
(continued)
Budget Factors – Water Operation:
User Charges
Revenue estimates take into consideration proposed rate increases.
Contractual services
The largest expenditure is for electricity, $459,967 and $483,103 in 2011 and 2012
respectively). Fees are also paid to Minnesota Department of Health and Department of
Natural Resources ($142,978 and $144,393 in 2011 and 2013 respectively.)
Major maintenance projects
Major maintenance in 2011 includes the rehabilitation of well 15 ($60,000), repainting the
Fairfield water tower ($631,000), replacement of a high performance pump at the water
treatment facility ($60,000) and water meter replacements ($55,200). The 2012 estimated
budget includes rehabilitation of wells 9 and 10 ($120,000), repainting the Airlake Water
Tower ($439,500) and water meter replacements ($55,200).
Transfers to Water Trunk Fund
Construction of the water system infrastructure such as wells, towers and water treatment plant
are financed with water connection charges collected at the time building permits are issued.
The current economic conditions has resulted in a significant decrease in housing construction
and hence reduction in water connection revenue. As such, Water Operating Fund will be
required to contribute $1.6 million in the next two years for debt service payments.
216
UTILITY FUND
Sanitary Sewer Operation
Program Description:
The sanitary sewer system 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 main. The
treatment facility operations are the responsibility of the Metropolitan Council Environmental
Services (M.C.E.S.)
Services - Sanitary Sewer Operation:
Clean, televise, and evaluate Evaluate portions of the sewer system
approximately of sanitary sewer main for surface water inflow and
each year and make repairs as necessary. groundwater infiltration (I&I) problems
and perform any necessary repairs to
Inspect manholes for groundwater
correct the problem.
infiltration and seal the structures to
eliminate the problem. Operate and maintain lift stations
Sanitary Sewer Activity Measures:
2009 2010 2011 2012
Activity
Actual Estimate Estimate Estimate
Number of
Miles of sanitary sewer lines 225 258 258 261
Miles of sewer cleaned 64 64 65 65
Miles of sewer televised 0 70 70 70
Lift stations 20 19 19 19
Gopher State One Call locates 6,896 6,960 7,120 7,180
Sewer utility accounts 17,104 17,216 17,350 17,480
Sewer backups 2 2 2 2
Service order completed 1,100 1,100 1,120 1,130
2010 Goals and Objectives – Sanitary Sewer Operation:
Rehabilitation of lift station #4
Abandon and decommission lift station #1.
2011 - 2012 Goals and Objectives – Sanitary Sewer Operation:
Rehabilitation of lift station #4
Rehabilitation of Lift Stations #6. 8, &20.
Sanitary sewer lining – North Lake Marion
Implement CarteGraph asset management system.
217
UTILITY FUND
Sanitary Sewer Operation
(continued)
Budget Summary - Sanitary Sewer Operation:
CITY OF LAKEVILLE, MINNESOTA
Enterprise - Utility Fund Sanitary Sewer Operation
Schedule of Revenues, Expenses and Changes in Net Assets
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Operating revenue
$ 3,793,269 $ 4,228,009 $ 4,198,726 $ 4,316,385 $ 4,454,875
User charges for services
Operating expenses
Personnel services 574,892 576,524 651,161 674,847 704,733
Commodities 67,681 79,613 79,136 79,725 80,643
Other charges and services 442,290 308,623 370,498 315,421 533,056
Disposal charges 2,645,442 2,825,699 2,825,699 2,941,489 3,065,964
1,098,510 1,115,940 1,115,940 1,138,259 1,161,024
Depreciation
4,828,815 4,906,399 5,042,434 5,149,741 5,545,420
Total operating expenses
(1,035,546) (678,390) (843,708) (833,356) (1,090,545)
Operating income (loss)
Non-operating revenue (expense)
Intergovernmental State aid 1,632 1,632 1,632 1,632 1,632
Investment income 45,984 31,132 27,472 41,258 63,856
Infrastructure contributed 251,055 37,650 37,650 38,403 39,171
Disposal of assets 95,000 2,250
Transfers in (out)
General Fund (135,411) (148,329) (137,980) (144,014) (147,262)
Special Revenue:
11,470 15,771 18,731 18,696 18,718
Env Resources Fund
174,730 (62,144) 42,505 (44,025) (21,635)
Total non-operating (net)
Change in net assets (860,816) (740,534) (801,203) (877,381) (1,112,180)
39,711,761 38,628,055 38,850,945 38,049,742 37,172,361
Net assets, January 1
Net assets, December 31$ 38,850,945$ 37,887,521$ 38,049,742$ 37,172,361$ 36,060,181
Net change in 2011 and 2012 fund balance percentage(2.3%)(3.0%)
218
UTILITY FUND
Sanitary Sewer Operation
(continued)
Sanitary Sewer Operation
Schedule of Working Capital
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Working Capital
Current assets
Cash and investments$ 2,747,171$ 2,504,946$ 2,750,522$ 3,192,795$ 4,169,421
Receivables 10,984 6,043 6,562 9,855 15,253
1,750 1,803 1,768 1,785 1,804
Prepaid expenses
2,759,905 2,512,792 2,758,852 3,204,435 4,186,478
Total current assets
Current liabilities
Salaries payable 74,637 102,302 83,192 93,448 105,839
238,599 108,505 350,232 623,036 1,605,394
Accounts payable
313,236 210,807 433,424 716,484 1,711,233
Total current liabilities
$ 2,446,669$ 2,301,985$ 2,325,428$ 2,487,951$ 2,475,245
Working capital, December 31
Changes in Working Capital
Working capital provided
Change in net assets$ (860,816)$ (740,534)$ (801,203)$ (877,381)$ (1,112,180)
1,098,510 1,115,940 1,115,940 1,138,259 1,161,024
Depreciation
237,694 375,406 314,737 260,878 48,844
Total funds provided
Working capital applied
Infrastructure contributed 251,055 37,650 37,650 38,403 39,171
161,058 350,336 398,328 59,952 22,379
Additions to capital assets
412,113 387,986 435,978 98,355 61,550
Total funds applied
Net increase (decrease) (174,419) (12,580) (121,241) 162,523 (12,706)
2,621,088 2,314,565 2,446,669 2,325,428 2,487,951
Working capital, January 1
$ 2,446,669$ 2,301,985$ 2,325,428$ 2,487,951$ 2,475,245
Working capital, December 31
Budget Factors – Sanitary Sewer Operation:
219
UTILITY FUND
Sanitary Sewer Operation
(continued)
User Charges.
Revenue estimates take into consideration proposed rate increases.
Disposal Charges
MCES has announced a 3.2% cost increase for the coming year.
Major maintenance projects
Major maintenance projects in 2011include inflow and infiltration mitigation efforts ($50,000)
and lift stations #8 and #20 rehabilitations ($42,600). Major maintenance projects in 2012
include inflow and infiltration mitigation efforts ($50,000), engineering of the Orchard Trail
lift station ($25,000) and lining of the Lake Marion sanitary sewer main ($240,900).
220
UTILITY FUND
Street Light Operation
Program Description:
The street light system 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. Beginning January 1, 2010, the City’s street lighting program will be accounted
for in the Enterprise Utility Fund; this activity was previously accounted for in the General
Fund Street Department.
Services – Street Light Operation:
Perform annual inspections of Perform seasonal banner and flag
approximately 4,230 street lights and changes on downtown street light.
report any maintenance requirements to
responsible electric companies.
Activity Measures:
2009 2010 2011 2012
Activity
Actual Estimate Proposed Estimated
Number of street light units:
Dakota Electric 3,362 3,387 3,416 3,450
Xcel Energy 885 891 898 906
Number of street light units:
Dakota Electric $ 125.72 $ 127.69 $ 137.71 $ 144.44
Xcel Energy $ 151.03 $ 153.73 $ 166.95 $ 175.04
221
UTILITY FUND
Street Light Operation
(continued)
Budget Summary – Street Light Operation:
CITY OF LAKEVILLE, MINNESOTA
Enterprise - Utility Fund Street Light Operation
Schedule of Revenues, Expenses and Changes in Net Assets
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Operating revenue
$ 66,396 $547,642 $565,680 $639,218 $687,160
User charges for services
Operating expenses
Personnel services 18,458 20,011 20,370 20,638
Commodities 1,463 1,202 1,438 1,456
- 615,252 581,409 633,509 670,333
Other charges and services
- 635,173 602,622 655,317 692,427
Total operating expenses
66,396 (87,531) (36,942) (16,099) (5,267)
Operating income (loss)
Non-operating revenue (expense)
Investment income 200 2,164 3,149 3,585
Transfers in (out)
150,000 (4,000) (20,827) (21,738) (22,228)
General Fund
150,000 (3,800) (18,663) (18,589) (18,643)
Total non-operating (net)
Change in net assets 216,396 (91,331) (55,605) (34,688) (23,910)
- 150,000 216,396 160,791 126,103
Net assets, January 1
$ 216,396$ 58,669$ 160,791$ 126,103$ 102,193
Net assets, December 31
Net change in 2011 and 2012 fund balance percentage(21.6%)(19.0%)
222
UTILITY FUND
Street Light Operation
(continued)
Street Light Operation
Schedule of Working Capital
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Working Capital
Current assets
Cash and investments$ 216,396$ 119,452$ 209,931$ 179,236$ 159,677
- 17 181 263 300
Receivables
216,396 119,469 210,112 179,499 159,977
Total current assets
Current liabilities
Salaries payable 196 770 799 830
- 60,604 48,551 52,597 56,954
Accounts payable
- 60,800 49,321 53,396 57,784
Total current liabilities
$ 216,396$ 58,669$ 160,791$ 126,103$ 102,193
Working capital, December 31
Changes in Working Capital
Working capital provided
$ 216,396$ (91,331)$ (55,605)$ (34,688)$ (23,910)
Change in net assets
- 150,000 216,396 160,791 126,103
Working capital, January 1
$ 216,396$ 58,669$ 160,791$ 126,103$ 102,193
Working capital, December 31
Budget Factors – Street Light Operation:
User Charges
Revenue estimates take into consideration proposed rate increases.
Other charges and services
Dakota Electric has announced electric rate increases for 2011. Electric rate increases are also
anticipated form Xcel Energy.
223
Internal Service Fund
The Internal Service Municipal Reserves Fund is used to account for services provided by one
City department to other City departments on a cost reimbursement basis.
MUNICIPAL RESERVES FUND
Program Description:
Under 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 in 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 accounting and monitoring of the City’s risk management costs.
Services:
General liability insurance. Employment practices liability
insurance.
Excess liability insurance.
Workers compensation insurance.
Property/casualty insurance.
Auto physical damage 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 $100,000 maximum.
Risk management charges to operating departments are based on factors such as number of
automobiles used, stated value of buildings and contents, and employee salaries. A portion of
the City’s liability insurance premium is attributable to vehicles and is allocated along with the
physical damage premium. The remainder of the liability insurance premium is combined with
an estimate of claims costs (including legal and administration) and allocated accordingly to
individual funds.
Activity Measures:
2009 2010 2010 2011 2012
Activity
Estimate Budget Estimate Estimate Estimate
Experience Modification Ratio
General Liability .763 .763 .752 .752 .752
Workers Compensation .810 .810 .890 .890 .890
224
MUNICIPAL RESERVES FUND
(continued)
Budget Summary:
CITY OF LAKEVILLE, MINNESOTA
Internal Service - Municipal Reserves Fund
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ending December 31, 2011 and 2012
201020112012
2009Adopted2010ProposedEstimated
ActualBudgetEstimateBudgetBudget
Operating revenues
Charges for services$ 375,381 $ 359,608 $ 359,608 $ 376,038 $ 387,595
67,638 51,460 51,460 51,460 51,460
Other
443,019 411,068 411,068 427,498 439,055
Total operating revenues
Operating expenses
372,662 364,927 365,911 380,062 390,285
Other charges and services
70,357 46,141 45,157 47,436 48,770
Operating income
Non-operating revenue (expense)
Investment income 4,188 5,989 5,868 5,947 6,036
(40,663) (43,140) (43,140) (44,435) (45,767)
Transfer to General Fund
(36,475) (37,151) (37,272) (38,488) (39,731)
Total non-operating (net)
Change in net assets 33,882 8,990 7,885 8,948 9,039
552,906 600,131 586,788 594,673 603,621
Net assets, January 1
Net assets, December 31$ 586,788 $ 609,121 $ 594,673 $ 603,621 $ 612,660
Net change in 2011 and 2012 fund balance percentage1.5%1.5%
Municipal Reserves Fund
The net assets are projected to increase $8,948 or 1.5% in 2011. The
increase is attributed to charges to other funds. Net assets are anticipated to increase $9,039
(1.5%) in 2012.
225
Appendices
CITY OF LAKEVILLE, MINNESOTA
Community Profile
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 Metropolitan Council estimated 2008 population of
54,731. The population of 54,731 is 11,603 or 26.9% over the 2000 Federal Census of 43,128.
History
The Village of Lakeville was incorporated in 1878. The Village of Lakeville and Lakeville
Township merged in 1967. Lakeville became a statutory City on January1, 1974.
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
Holly Dahl Mayor December 31, 2010
Mark Bellows Council member December 31, 2010
Kevin Miller Council member December 31, 2010
Kerrin Swecker Council member December 31, 2012
Laurie Rieb Council member December 31, 2012
The City Administrator is responsible for the daily management of City business and the
administration of policy as directed by the Council. Mr. Steven C. Mielke is the City
Administrator and has served in this capacity since June 2004. Mr. Mielke has 23 years of
experience in local government.
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, and
street light utility. The three liquor stores strategically located adjacent to major highways
collectively represent the largest municipal liquor operation in Minnesota.
The City’s Police Department consists of 52 full-time officers and 15 police reservists. The Fire
Department has four stations and is served by 90 authorized volunteers. The City has a fire
rating of 4 for insurance purposes. This results in a significant reduction of fire insurance
premiums for commercial and industrial buildings and apartments.
226
CITY OF LAKEVILLE, MINNESOTA
Community Profile
(continued)
Additional City facilities include 56 public parks (which include 39 playgrounds), and
18 conservation areas, three municipal swimming beaches, 12 outdoor ice rinks (fully boarded),
3 indoor ice rinks, and approximately 91 miles of trails.
The City provides water and sanitary sewer facilities to a majority of its residential areas. The
City’s present water system includes 17 wells and seven water storage facilities with a total
capacity of 8.0 million gallons. The City’s water treatment plant has a production capacity of
20million gallons of water per day. The Metropolitan Council Environmental Service (MCES)
is responsible for treatment and disposal of sanitary sewer effluent.
Growth Management:
The City has been and is expected to continue to be one of the fastest growing cities in
Minnesota.
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 2007, the City Council approved the 2008-2010 Strategic Plans for
Economic Development. The Plan serves as a guide for the work of the Economic Development
Commission (EDC) and Economic Development staff to achieve Lakeville’s economic
development objectives. The EDC developed information into seven categories with
corresponding goals and outcomes. The seven categories are Transportation, Life-Cycle
Housing, Technology, Growth Management, Communication, Partnerships and Fiscal
Management.
The 2008-2010 Strategic Plan for Economic Development is the sixth plan prepared by the EDC
since 1995, when the first strategic plan was completed. The previous strategic plan was from
2005-2007 and featured six strategic areas of focus. Progress was made in all categories, with
work being done to improve the City’s roads, create life-cycle housing, improve the Downtown
area, create and strengthen partnerships, and communicate with residents and the business
community about the benefits of a strong commercial/industrial base.
227
CITY OF LAKEVILLE, MINNESOTA
Community Profile
(continued)
City of Lakeville 2010 actual land use composition and 2030 projection is as follows
: (1)
2010 2030
ActualProjection
Single family residential 20.8% 30.3%
Townhomes, condominiums 2.2% 13.1%
Rural agriculture/residential 36.6% 13.1%
Commercial/industrial 7.0% 13.0%
Parks and open space 15.0% 11.8%
Public right-of-ways 13.4% 10.5%
Public and semi-public 3.9% 4.9%
Multifamily residential 0.1% 2.4%
Manufactured housing 1.0% 0.9%
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:
Labor Force Unemployment Rate
(4)
City of LakevilleDakota County
PersonalState
IncomeLaborLaborof Minn.
(2)
(3)
YearPopulation(per capita)ForceRateForceRateRate
200043,128$ 37,000 24,552 1.5% 215,9122.2%3.1%
200144,751$ 37,350 25,665 2.0% 222,2652.8%4.4%
200246,285$ 38,255 26,072 2.8% 226,7503.8%4.4%
200347,523$ 39,612 28,302 2.5% 230,9683.6%4.5%
200449,097$ 41,165 27,950 3.1% 229,7344.2%5.0%
200551,472$ 42,235 28,745 3.2% 231,3224.0%4.8%
200652,323$ 43,720 29,677 3.9% 230,4274.1%4.9%
200753,829$ 45,630 30,492 4.3% 232,6704.6%4.7%
200854,731$ 46,357 30,471 5.6% 229,7166.1%6.8%
200955,772N/A 30,816 6.7% 232,2047.3%8.0%
Source:
(1) City of Lakeville 2010 Comprehensive Plan.
(2) Metropolitan Council as of April 1, (except for year 2000 Federal Census).
(3) U.S. Bureau of Economic Analysis – Dakota County, Minnesota Data.
(4) Minnesota Dept. of Employment and Economic Development as of December 31, 2008.
N/A - Not available at the time of this printing.
228
229
CITY OF LAKEVILLE, MINNESOTA
Number of City Employees (Full Time Equivalent)
2009201020112012
Position TitleActualBudgetEstimateEstimate
General government
City Administrator1.01.01.01.0
Assistant to City Administrator1.00.50.50.5
Executive Administrative Assistant/Deputy Clerk1.01.01.01.0
Communications Manager1.01.01.01.0
Communications Specialist1.01.01.01.0
Video Production Specialists1.92.02.02.0
City Clerk1.01.01.01.0
Planning Director1.01.01.01.0
Associate Planners2.31.51.51.5
Planning Administrative Assistant 0.50.50.50.5
Community and Economic Development Director1.01.01.01.0
Economic Development Specialist1.01.01.01.0
Community and Economic Dev. Admin. Assistant 0.50.50.50.5
Building Official1.01.01.01.0
Senior Inspectors3.03.03.03.0
Building Inspectors2.72.02.02.0
Building Senior Administrative Assistant1.01.01.01.0
Building Administrative Assistants1.01.01.01.0
Facility Maintenance Coordinator1.01.01.01.0
City Hall Receptionist1.01.01.01.0
City Hall Administrative Assistant1.01.01.01.0
Finance Director1.01.01.01.0
Senior Accountants2.62.62.62.6
Accountant II0.90.80.80.8
Accounts Payable Technician1.01.01.01.0
Finance Senior Administrative Assistant1.01.01.01.0
Information Systems Manager1.01.01.01.0
Information Systems Network Specialist1.01.01.01.0
Information Systems Technician1.31.01.01.0
Human Resources Manager1.01.01.01.0
Benefits Specialist1.01.01.01.0
Payroll Technician0.90.80.80.8
Total general government38.636.236.236.2
230
CITY OF LAKEVILLE, MINNESOTA
Number of City Employees (Full Time Equivalent)
(continued)
2009201020112012
Position TitleActualBudgetProposedEstimated
Public safety
Police
Sworn officers
Chief1.01.01.01.0
Captains2.02.02.02.0
Sergeants10.010.010.010.0
Investigators6.06.06.06.0
Narcotics Task Force Officer1.01.01.01.0
Patrol Officers31.031.532.033.0
Total sworn officers51.051.552.053.0
Crime Prevention Coordinator1.01.01.01.0
Community Public Safety Officers0.3
Community Service Officers3.83.83.83.8
Animal Control Officer1.01.01.01.0
Records Supervisor1.01.01.01.0
Records Administrative Assistants4.04.04.05.0
Total police62.162.362.864.8
Fire
Fire Chief1.01.01.01.0
Fire Marshal1.01.01.01.0
Fire Inspector1.01.01.01.0
Fire Department Office Supervisor1.01.01.01.0
Fire Administrative Assistant0.60.60.60.6
Total fire4.64.64.64.6
Total public safety66.766.967.469.4
Public works
Engineering
City Engineer1.01.01.01.0
Assistant City Engineer1.01.01.01.0
Development/Design Engineer1.01.01.01.0
Senior Construction Representative1.01.01.01.0
Special Assessment/Property Data Technician0.3
Engineering Administrative Assistant1.01.01.01.0
GIS Coordinator1.01.01.01.0
GIS Technician1.01.01.01.0
Environmental Resources Manager1.01.01.01.0
Environmental Resources Specialist1.01.01.01.0
Environmental Resources Technician0.00.00.00.0
Total engineering9.39.09.09.0
231
CITY OF LAKEVILLE, MINNESOTA
Number of City Employees (Full Time Equivalent)
(continued)
2009201020112012
Position TitleActualBudgetProposedEstimated
Public works (continued)
Streets
Street Superintendent1.01.01.01.0
Street Supervisor1.01.01.01.0
Street Lead 1.01.01.01.0
Street Maintenance II10.410.010.010.3
Service Technician Lead1.01.01.01.0
Fleet Service Technicians4.04.04.04.0
Streets Administrative Assistant1.01.01.01.0
Total streets19.419.019.019.3
Total public works28.728.028.028.3
Parks and recreation
Parks
Parks and Recreation Director1.01.01.01.0
Parks Operations and Maintenance Manager1.01.01.01.0
Parks Superintendent0.2
Parks Supervisor0.31.01.01.0
Parks Lead1.01.01.01.0
Park Maintenance II8.58.58.58.5
Park Forester0.50.50.50.5
Parks Senior Administrative Assistant1.01.01.01.0
Park Maintenance Administrative Assistant1.01.01.01.0
Total parks14.515.015.015.0
Recreation
Recreation Supervisor1.01.01.01.0
Recreation Program Supervisor1.01.01.01.0
Recreation Program Assistant0.2
Recreation Administrative Assistant1.01.01.01.0
Senior Center Coordinator1.01.01.01.0
Senior Center Administrative Assistant0.70.70.70.7
Total recreation4.94.74.74.7
Arts Center
Arts Center Coordinator1.01.01.01.0
Arts Center Administrative Assistant1.01.01.01.0
Arts Center Facility Attendant1.51.51.51.5
Pottery Manager0.20.20.20.2
Total arts center3.73.73.73.7
Total parks and recreation23.123.423.423.4
Total general fund/special revenue fund employees157.1154.5155.0157.3
232
CITY OF LAKEVILLE, MINNESOTA
Number of City Employees (Full Time Equivalent)
(continued)
2009201020112012
Position TitleActualBudgetProposedEstimated
Liquor fund
Operations Director1.01.01.01.0
Assistant to the Director1.01.01.01.0
Store Manager3.03.03.03.0
Inventory Control Technician1.01.01.01.0
Assistant Store Manager5.05.05.05.0
Lead Sales Associate2.72.72.72.7
12.012.012.012.0
Sales Associate
25.725.725.725.7
Total liquor fund employees
Utility fund
Operations and Maintenance Director1.01.01.01.0
Utilities Superintendent1.01.01.01.0
Utilities Supervisor1.01.01.01.0
Operations and Maintenance/Safety Specialist1.01.01.01.0
Utility Maintenance II11.011.011.011.0
Utility Billing Technician2.02.02.02.0
1.01.01.01.0
Utility Administrative Assistant
18.018.018.018.0
Total utility fund employees
Total general fund/special revenue fund employees157.1154.5155.0157.3
Total liquor fund employees 25.7 25.7 25.7 25.7
18.0 18.0 18.0 18.0
Total utility fund employees
200.8 198.2 198.7 201.0
Total City employees
233
CITY OF LAKEVILLE, MINNESOTA
Listing of Principal Employers
As a part of the Minneapolis-Saint Paul metropolitan area, Lakeville’s labor market is drawn
from many of the surrounding communities; and, conversely, many City residents commute to
other areas of the Minneapolis-Saint Paul metropolitan area for work. Major employers located
in the City of Lakeville are listed below:
Approximate
Number
Employer Product/Service of Employees
Independent School District No. 194
(Lakeville) Public education 1,420
Ryt-Way Industries, Inc. Food service contractors 636
ConAgra Store Brands Breakfast cereal manufacturing 489
Imperial Plastics, Inc. Plastics material and resin manufacturing 225
Despatch Industries, Inc. Industrial furnace and oven manufacturing 215
City of Lakeville City government 198
Menasha Corporation Corrugated box manufacturing 191
Jeff Belzers Chevy-Dodge-Kia Auto dealership 110
National Polymers, Inc. Plastics material and resin manufacturing 100
Hearth & Home Technologies, Inc. Fireplaces/metal work 80
Carquest Distribution Center General warehousing and storage 65
Source: Telephone survey of individual employers, November 2009.
234
CITY OF LAKEVILLE, MINNESOTA
Commercial and Industrial Building Permits Issued
Years 2009 and 2008
NEW BUILDING PERMITS
(in excess of $250,000)
BUSINESSPRODUCT/SERVICEVALUATION
(1)
UponorDistribution facility$ 8,225,000
First IndustrialSpeculative warehouse/distribution 7,998,000
Brunswick Zone XLBowling/family entertainment 4,300,000
Kent 46 Office BldgOffice building 2,760,000
Buffalo Wild WingsRestaurant 1,625,000
Primrose School of North LakevilleDaycare 1,400,000
Green Planet Car WashCar wash/detail center 1,400,000
Heritage Commons 3rdMulti-tenant retail 1,100,000
Ace HardwareRetail hardware store 1,400,000
Kinder CareDaycare 900,000
GCR Tire CenterCommercial tire repair/distribution 400,000
EXPANSION OR REMODEL BUILDING PERMITS (in excess of $250,000)
BUSINESSPRODUCT/SERVICEVALUATION
(1)
Brackett's CrossingPrivate country club/golf course$ 2,800,000
Con Agra FoodsStore brand/private label food prod. 1,400,000
Mendell Mfg.Medical technology manufacturer 690,000
Malt-O-MealAdmin. offices/technology center 600,000
Ryt-Way IndustriesFood packaging 500,000
Hearth & Home Corporate OfficeHearth products producer 425,000
Minnesota School of BusinessPrivate business school 413,000
Holyoke CrossingMulti-tenant retail 385,400
Just Kidding Around DaycareDaycare 350,000
(1) Valuation excludes land and personal property.
Source: City of Lakeville Inspections Department.
235
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Schedule of Capital Outlay
20112012
General Government
DAS Network Storage 57,292
MS Server 2008 8,358
MS Office Upgrade 7,508
HP LTO-3 Tape Drive Upgrade 5,215
MS Desktop OS-7 2,925
ESX Virtual Server Memory 2,155
Virtual Desktop Storage 61,988
Virtual Desktop Servers 94,920
Computer - Desktop NOC 2,813
Debt issuance 21,685 18,863
3,954 8,353
Other
109,092 186,937
Total General Government
236
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Schedule of Capital Outlay
20112012
Public Safety Police
Outdoor Warning Sirens + 247,498
Squad Cars - equipment + 135,170 105,654
Tough book computers 128,079
LOGIS CAD System 84,752
MS Office Suite 15,316
AR-15 Patrol 12,732
Scheduling software - POSS 11,675
Glock Handguns 9,638 1,144
Desktop computers 9,075 25,410
MS Operating System 8,521
AED 6,920 1,384
Taser 4,328 5,193
Traffic Laser 3,735
Cameras 2,692 448
MAAG AR-15 2,070
Oxygen Kits 1,118
PBT 594 1,789
CSO Vehicle + equipment 31,931
Digital Voice Recorders 25,970
ACO vehicle + equipment 24,498
Laptop Computer 2,364
32,415 11,792
Other
716,328 237,577
Total Public Safety Police
237
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Schedule of Capital Outlay
20112012
Public Safety Fire
Tender Truck 225,000
Toughbook computers 18,297
SCBA Seat Brackets 18,282
Motorola Type V pagers 15,096
Blitz Nozzels 5,769
Ventilation Fans 5,451
Desktop computers 5,445 12,705
Wire access point 5,249
MS Office Suite 4,505
Traffic Light Bars (R1&3, E-22) 3,830
Apartment Pack Nozzels 3,632
Natural Gas Detection Units 3,386
Laptop Computer 2,364 2,364
MS Desktop OS-7 System upgrades 1,272
Quick Vent Saw 1,159
Motorola Type V pagers 15,096
15,102 5,399
Other equipment
333,839 35,564
Total Public Safety Fire
238
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Schedule of Capital Outlay
20112012
Public Works Streets
Sidewalk Maintainer 184,006
Dump Truck with Plow 173,103 348,927
Water Tanker 144,628
Loader Snowblower Attachment 143,338
Vacuum Excavator 82,039
Fuel System 73,000
1/2 Ton Crew Cab 4WD 28,192
Toolbox and Tools 26,037
Tire Changes and Balancer 16,254
Asphalt Milling Machine Attachment 14,738
CarteGraph acquisition 13,700
Trailer 9,712
Desktop/Laptop Computers 7,809 3,630
CCTV Inspection System 7,802
MS Office/OS 7 3,893
Vibratory Rammer 2,880
12-Ton Support Stands 2,110
Magnetic Locator 983
Wheel Loader 243,723
Asphalt Patch Truck 137,355
1/2 ton 4WD Pickup 23,488
3/4 ton 4x4 plow + equipment 5,299
40,377 39,875
Other
974,601 802,297
Total Public Works Streets
239
CITY OF LAKEVILLE, MINNESOTA
Capital Projects - Equipment Fund
Schedule of Capital Outlay
20112012
Parks & Recreation
Grounds Master 5910 mower 174,794 87,538
Tractor, Farm Loader, & Rear Boom Flail Mower 91,549
Turbo Toolcat & 72" Snow Blower 49,484
1/2 Ton 4x4 Pickup 23,488 23,488
Desktop computers 7,260 5,445
3/4 Ton Pickup with V-Plow 6,071
MS Office Suite 2,703
Line Trimmers (6) 1,924
Pole Saw 641 642
MS Operating System 636
Chainsaw 534 534
70" 3 PT Hitch Rotary Tiller
17,013 10,563
Other
376,097 128,210
Total Parks & Recreation
240
Glossary of Budget Terms
Accrual Accounting Method
Transactions are recognized at the time they are incurred, as
opposed to when cash is received or spent.
Advertising Income
Earnings derived from advertising.
Ad Valorem Tax
Money collected from all the real property within the City based upon the
value of the property.
Allocated Expenditures
Expenses not directly determined by the departments, such as Internal
Service Charges and General Fund Charges.
Annual Budget
The budget authorized by resolution of the City Council for the fiscal year.
Appropriation
The authorization by City Council to incur obligations and spend City funds.
Appropriations are usually made for fixed amounts and are typically granted for one year.
Appropriation of Fund Balance
Using the existing fund balance for current operations.
Assessed Valuation
The value of all real and personal property that is used as a basis for ad
valorem taxes.
Balanced Budget
A budget in which expenditures are equal to revenue.
Bond Proceeds
Funds received from the sale of any bond issue.
Budget
The financial plan for a specific period of time that identifies expenditures and the
sources of revenue to pay for them.
Budget Message
The opening section of the budget which provides the City Council and the
public with a general summary of the most important aspects of the budget, changes from the
current and previous fiscal years, as well as the views and recommendations of the City
Manager.
CDBG
Abbreviation for Community Development Block Grant – This fund receives and
expends the City’s allocation of the Federal Community Development Block Grant Program
money.
Capital Improvement Program (CIP)
A five-year schedule of capital improvement projects
and items in excess of $25,000. This is a flexible budget document that is used as a planning
tool for needed improvements. Amounts approved in the CIP are considered guidelines and are
not officially as budgeted amounts until they are incorporated in the operating budget of one of
the City’s funds.
Capital Projects Funds
The funds that account for all resources used for the acquisition or
construction of capital facilities, except those financed by Proprietary Funds.
Capital Outlay
Expenditures that result in the acquisition of capital fixed assets that has a
value over $2,000 and a useful life of greater than one year.
241
Glossary of Budget Terms
(continued)
Certified Tax Levy
The ad valorem tax levy that is recorded with Dakota County.
Circuit Breaker
A state-paid property tax refund program for homeowners who have property
taxes out of proportion with their income. A similar program is also available to renters.
Class Rates
The percent of market value set by state law that establishes the property’s tax
capacity subject to the property tax. See Table A for a sample list of class rates.
Table A: class rates
Taxes Local Taxes State Tax Payable
Property Class Payable 2010 Payable 2011 2011
Residential Homestead:
<$76,0001.00% 1.00%
No state tax
$76,000-$500,000 1.00% 1.00%
>$500,000 1.25% 1.25%
Non-homestead Residential:
Single unit:
<$76,000 1.00% 1.00%
No state tax
$76,000-$500,000 1.00% 1.00%
>$500,000 1.25% 1.25%
1-3 unit buildings 1.25% 1.25%
Market-rate Apartments: 1.25% 1.25% No state tax
Commercial/Industrial:
Subject to state
<$100,000 1.50% 1.50%
levy (Commercial-
$100,000 - $150,000 1.50% 1.50%
industrial rate)
>$150,000 2.00% 2.00%
Seasonal Recreational Residential:
Subject to state
<$76,000 1.00% 1.00%
levy (seasonal-
$76,000 - $500,000 1.00% 1.00%
recreational rate)
>$500,000 1.25% 1.25%
Classification of Expenditures
A group of object codes that have the same functional
characteristics. The City uses four classifications of expenditures: Personnel Services,
Commodities, Other Charges and Services, and Capital Outlay.
Contingency
A budgetary reserve set aside for emergencies or unforeseen expenditures.
Contractual Services
The cost of items related to a contractual agreement. Examples would
be: professional services, insurance, utilities or rentals.
Contributions
Under certain conditions, people who subdivide land must make a contribution
to the City for park purposes of either cash or land. Cash received for this purpose is collected in
this account.
Court Fines and Forfeits
Fines imposed on individuals by the courts for various illegal acts
performed within the City.
242
Glossary of Budget Terms
(continued)
Current Service Level
A description of the current services and level of service provided by a
program or department.
CSAH
County State Aid Highway. A road or highway that is maintained either by the State or
County.
Debt Service Funds
The funds that account for the payment of principal and interest on
outstanding debt for the city.
Department
An organizational unit of the City for the purposes of administration and
accounting.
Depreciation
Expenditures incurred when spreading the cost of an asset over its estimated
useful life rather than deducting the entire cost in the year the asset is purchased.
Enterprise Funds
The funds that account for the financing of self-supporting activities of
governmental units and render services to the general public based on user charges. Records are
maintained on the accrual basis of accounting.
Fiscal Disparities Program
Local units of government in the Twin Cities metropolitan area
and on the iron range participate in property tax base sharing programs. Under these two
programs, a portion of the growth in commercial and industrial property value of each city and
township is contributed to a tax base sharing pool. Each city and township then receives a
distribution of property value from the pool based on market value and population in each city.
FT
Abbreviation for full-time permanent staff position.
FTE
Abbreviation for full-time equivalent. Full-time equivalent is designated to working 40
hours per week or 2,080 hours per year.
Fiscal Year
For budgeting purposes, the City’s fiscal year is based on a calendar year.
Fixed Capital Asset
Purchases of a long-term nature which are to be held and used. Examples
would be: land, buildings, machinery, furniture, and equipment.
Fund
A separate accounting entity, with a set of self-balancing accounts for recording the
collection of revenues and the payment of expenditures to carry out a specific function.
Fund Balance
The excess of a governmental fund’s assets over its liabilities. The term “fund
balance” is used in governmental fund types. The term “net assets” is used in proprietary fund
types.
GAAP
Abbreviation for Generally Accepted Accounting Principles.
243
Glossary of Budget Terms
(continued)
General Fund
The general operating fund of the City, the General Fund accounts for most of
the City’s financial resources. General Fund revenues include: general property taxes, licenses
and permits, intergovernmental revenues, charges for services, and other types of revenue. The
General Fund accounts for the revenues and expenditures necessary to deliver basic operating
services: police, fire, finance, parks, public works, etc.
Governmental Funds
The General Fund, Special Revenue Funds, Debt Service Funds, and
Capital Project Funds are governmental funds.
HRA
Abbreviation for Housing and Redevelopment Authority.
Investment Income
Interest received from the investment of cash in a fund.
Intergovernmental Revenue
Money received from Federal, State, County, or local
governments in the form of grants or shared revenues for various activities.
Internal Service Fund
The fund within the proprietary fund types that account for the
financing of goods or services provided by one department to other departments of the
government.
Licenses
Revenues received by the issuance of various licenses that are granted to various
businesses in the City.
Line Item Budget
A budget format that summarizes the object codes of expenditures for goods
and services that the City intends to purchase during the fiscal year.
Market Value
An assessor’s estimate of what property would be worth on the open market if
sold. The market value is set on January 2 of the year before taxes are payable.
Market Value Homestead Credit
This credit offsets a portion of each homestead’s property
tax burden equal to 0.4 percent of the homestead’s market value up to a maximum credit of
$304.
MSA
Abbreviation for Municipal State Aid for Highway Construction.
MCES
Abbreviation for Metropolitan Council Environmental Services. The MCES is a
division of the Metropolitan Council, a state planning agency that serves the Twin Cities seven-
county metropolitan area. The MCES provides the City with wastewater treatment service.
Miscellaneous Revenue
Money collected from various sources generally on a non-recurring
basis or revenue that would not be appropriately classified as a major revenue source.
Modified Accrual Accounting Method
Transactions are recognized in the accounting period
when they become susceptible to accrual, that is, when they become measurable and available.
Municipal State Aid (MSA) Maintenance
Money received from the State of Minnesota for
the maintenance of certain streets within the City that are designated State Aid Streets.
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Glossary of Budget Terms
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Net Assets
The excess of a proprietary fund’s assets over its liabilities. The term “net assets” is
used in proprietary fund types. The term “fund balance” is used in governmental funds.
Objective
The accomplishments by a program if operating properly.
Other Charges
The cost of miscellaneous items such as conferences and schools, dues and
subscriptions, depreciation and merchandise for resale.
Penalties
Charges to utility customers caused by late payment of their water, sewer and
recycling charges.
Penalties and Interest
Fines and interest charges on taxes not paid in a timely manner.
PERA
Abbreviation for Public Employees Retirement Association.
Permits
Revenue derived from various permits, as defined by the City or State Code, for the
performance of a specific action. For example, building a house.
Personnel Services
The cost of salaries and wages paid to employees as well as the fringe
benefits associated with employment (i.e. Social Security, PERA, health insurance, life
insurance, etc.)
PILT
Abbreviation for payment-in-lieu-of-taxes. The City’s owned liquor store locations do
not pay property taxes; therefore, the Liquor Fund pays a determined amount to the General
Fund.
Property Class
The classification assigned to each parcel of property based on the use of the
property. For example, owner-occupied residential property is classified as homestead.
Property Tax Levy
The tax imposed by a local unit of government. The tax is established on
or around December 28 of the year preceding the year the levy will be paid by taxpayers.
Proprietary Funds
Fund’s that account for government operations financed and operated in a
manner similar to a private business.
Rental Income
Fees collected for the rental of equipment and the use of certain facilities.
R.E.U.
Residential equivalent unit.
SCBA
Self-Contained Breathing Apparatus. Equipment used by firefighters.
Special Assessment
Receipts from assessment placed on a property, within the City, for public
improvements that have benefited that property.
Special Revenue Funds
Fund’s that accounts for revenues derived from specific taxes or other
earmarked revenue sources.
Supplies
Items that are not permanent in nature.
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Glossary of Budget Terms
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Tax Capacity
The valuation of property based on market value and statutory class rates. The
Tax Capacity is measured by applying tax capacity percentages established by the Legislature.
The property tax for each parcel is based on its tax capacity.
Tax Capacity Rate
The replaced the term “Mill Rate” and was by the Legislature in 1988.
This rate is expressed as a percentage.
TIF
Abbreviation for Tax Increment Financing. A method used by the City for financing the
acquisition of City infrastructure.
Total Tax Capacity
The amount computed by first totaling the tax capacities of all parcels of
property within a city. Adjustments for fiscal disparities, tax increment and a portion of the
powerline value are made to this total since not all tax capacity is available for general tax
purposes.
Transfers
Money or property transferred between City funds.
Truth-in-Taxation
The “taxation and notification law” which requires local governments to set
estimated levies, inform taxpayers about the impacts, and hold a separate hearing to receive
taxpayer input.
User charges for Services
Revenue incurred from the sale of water, sanitary sewer, or street
light service to customers of the Utility Fund.
User Fee
A payment for the direct receipt of a public service by the user of the service.
Water Sales
Revenue earned from the sale of water to customers of the Utility Fund.
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